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New Census Data Released on Income in Mississippi

September 29, 2010

Filed under: Budget & Tax — admin @ 10:03 PM

Yesterday, the U.S. Census Bureau released new data on poverty and income from its American Community Survey.  While the state’s poverty rate stayed statistically unchanged from 2008-2009, the state saw a decline in median household income according to the reports released.  The state’s median income is the level at which half of households have income above the figure and one half below.  

 Real median household income in the United States decreased by 2.9 percent from $51,726 to $50,221 from 2008-2009. In Mississippi median income estimates went down by the same 2.9 percent from $37,749 to $36,646.  Mississippi’s median household income remains less than its border states.     

2009 Median Household Income in Mississippi and Surrounding States

The decline in household income is not surprising given the recent recession; however, it illustrates the struggle Mississippi’s working families have been facing.  With incomes decreasing, workforce supports such as Supplemental Nutrition and child care remain critical for supporting families during these difficult economic times.

While the American Recovery and Reinvestment Act has provided some resources to ensure that services like these and others such as public safety and education remain available and of a certain level of quality, the funding is set to expire soon.  In the absence of additional revenue, lawmakers will need to identify substantial cuts to balance the budget.  With significant service reductions already in force, more public sector jobs will be lost, class sizes will increase and access to overall services is likely to decline.

The prospect of severe cuts calls for leaders to examine a balanced approach that includes raising revenues for the short and long term.

Source: U.S. Census Bureau, American Community Surveys Briefs, “Household Income for States: 2008 and 2009,” September 2010
Author: Sara Miller, Senior Policy Analyst 

FY 2012 Budget Hearings Recap

September 24, 2010

Filed under: Budget & Tax — admin @ 12:53 PM

On Thursday, the FY2012 budget hearings adjourned. This week, we’ve blogged on a number of the hearings providing a snapshot of the proceedings. Agency leaders offered some stark examples of what is happening and what could happen if additional sources of revenue are not identified:

  • The Mississippi Department of Human Services stated that underfunding its FY2012 budget request could result in the state of Mississippi being out of compliance with a lawsuit settlement provision requiring more social workers with manageable caseloads to protect children in foster care;   

  • Of 650 authorized positions, only 527 Highway Trooper positions are filled. In some instances where back-up is needed, the next closest trooper is 35-40 minutes away;   

  • Class sizes have been increasing due to fewer teachers in Mississippi’s classrooms. One example cited by the State Superintendent included a kindergarten classroom with 34 children;   

  • Tuitions in the state’s two and four year systems could increase again;   

  • The average number of Medicaid beneficiaries has increased by over 50,000 as people have lost their jobs with health coverage for children;    

  • The Department of Mental Health may face the closure of some treatment facilities if its budget is not funded.

Almost every agency with an existing appropriation of funds from the American Recovery and Reinvestment Act (ARRA) asked the Joint Legislative Budget Committee to replace those funds with state funds.  Replacement of the ARRA funds set to expire remains a tall order as ARRA allocations totaled $383 million in the FY2011 budget.

The hearings concluded with an economic outlook provided by the State Economist. Some sobering statistics shared included the fact that, as the result of recession induced job loss, Mississippi now has the same number of jobs as in 1996. Some analysts predict that it may not be until 2015 until Mississippi regains the jobs lost. Housing starts are also 60% below pre-Katrina levels. All of these amount to an outlook of slow growth for the foreseeable future.  

As lawmakers grapple with tough decisions, now more than ever, all options should be considered – including finding new revenue sources – to ensure that the quality of education, healthcare and public safety don’t decline in the future.

Authored by: Ed Sivak, MEPC Director  

Medicaid Funding Necessary to Support the Needs of Vulnerable Children and Elderly

Filed under: Budget & Tax,Income & Working Families,Mississippi Economic Recovery Resources — admin @ 11:28 AM

As our post earlier this week summarizes, the number of Mississippians covered by private health insurance has fall substantially over the last decade. Over the same period, the number of individuals receiving public insurance is rising. More recently, as many Mississippians lose their jobs in the current recession, they have also lost employer sponsored health insurance for themselves and their families. Yesterday, the Mississippi Division of Medicaid reported that the number of children, in particular, in need of health insurance through Medicaid has been rising as a direct result of the increased unemployment across the state.

In total, Medicaid has seen its average number of beneficiaries increase during this recession. In FY2007 an average of 565,125 Mississippians were covered by Medicaid. The Division of Medicaid reported yesterday that the number of beneficiaries grew to 615,497 in FY2010. Medicaid now supports over 50,000 more residents in the state than it did before the recession began.

Taking a closer look at the latest Medicaid enrollment reveals that the 92 percent of enrollees are children, elderly adults, or disabled residents. The graphic below provides the most recent breakdown of Medicaid beneficiaries from August 2010. 
 

In total the Division of Medicaid is requesting $819.3 million from the general fund for FY2010. About $200 million is a requested increased compared to the current fiscal year. Of that, $152 million is to replace ARRA funding which will fade out this time next year.

As demand for this important health insurance program rises among Mississippi’s children, elderly and disabled, the state has fewer resources to meet their needs. The circumstances call for a balanced approach to building a budget that includes raising revenues.   
 

Source: Office of the Governor, Division of Medicaid. Fiscal Year 2012 Budget Presentation. September 22, 2010. 
Author: Sarah Welker, Policy Analyst  

Adequate Funding for Mississippi’s Education Systems May Require Additional Revenue

September 23, 2010

Filed under: Budget & Tax,Income & Working Families,Mississippi Economic Recovery Resources — admin @ 2:00 PM

Throughout the week we have heard educational leaders speak to the very real needs they have for the upcoming budget year. An editorial in Thursday’s Clarion Ledger questions whether the state will be able to fulfill these needs by supporting adequate education across all systems– K-12, community colleges, and universities. On Wednesday, the State Board of Community and Junior Colleges (SBCJC) presented their funding requests for FY2012. A key piece of their request was that lawmakers move towards fulfilling the commitment for ‘mid-level funding’ of the community college system.

In 2007, the state Legislature passed the mid-level funding mandate that commits the state to providing funding for each student that is midway between the amount provided for each K-12 student and each full-time university student. Through this measure, lawmakers made a commitment to providing adequate education to community college students, 97 percent of which are Mississippi residents.

The example below provides data on student funding from FY2009. In 2009, K-12 received $5,125 per student and universities received $7,598 per full-time student in state funding. State funding for community colleges would need to reach $6,362 to meet the mid-level funding commitment; however, the actual allocation in 2009 was $4,074- close to $2,288 less per student. 


Yesterday, SBCJC leaders continued to press lawmakers to fulfill their legal obligation and move to mid-level funding. To fill the gap between the $4,074 allocated in 2009 and the mid-level funding goal would require $134 million in additional funds. SBCJC is requesting increased funding equal to half that amount in 2012.

Adequate funding for all of Mississippi’s education systems should unquestionably be a goal for our state. However, our current budget environment may make fully funding Mississippi’s commitments to adequate education at every level unlikely in the absence of additional revenue.

Source: Mississippi Association of Community and Junior Colleges. Top Three Funding Priorities Worksheet.
Author: Sarah Welker, Policy Analyst 



Mississippi’s University System Increases Funding Request as ARRA Funding Fades

Filed under: Budget & Tax,Income & Working Families,Mississippi Economic Recovery Resources — admin @ 8:23 AM

Tuesday’s state budget hearings brought presentations from the Department of Education and Institutions of Higher Learning. The Clarion Ledger article, “Education funding still tight”, highlights some of the key requests and concerns during the hearings. A repeated concern has been finding resources to fill the loss of federal ARRA dollars that helped school districts and universities meet funding needs in FY2010 and FY2011.

 In FY2011, the university system received 12% of their overall funding through ARRA, equal to $66.1 million. The graphic below illustrates the difference between the state appropriated funding in FY11 and the amount of state support requested for FY12 for university general support. In order to fill the hole left by the disappearance of ARRA funding, Mississippi will have to find $54.1 million to meet the FY12 Appropriation requests for general support to the state’s 8 universities. 

Mississippi’s University System Increases Funding Request as ARRA Funding Fades

 FY11 Appropriations and FY12 Requests in Millions of Dollars

 

Outside of the $54.1 million gap in university general support, the University of Mississippi Medical Center will also be without $19.9 million in ARRA support it received in FY11. In total, the state appropriated $195.4 million to the Medical Center last year, and lawmakers will have to find $39.7 million if they are to meet the requested appropriation of $235 million for FY12.

 The funding gaps above highlight a broader message across this week’s hearing– state legislators are going to face very difficult funding decisions that will have an impact, not only Mississippi’s students and future professionals, but also the quality of life for state’s residents now and into the future. Hearings continued Wednesday, as the Community College Board, Divisions of Medicaid, and Department of Human Services all presented their budget requests for FY2012.

Source: Mississippi Board of Trustees of State Institutions of Higher Learning. Presentation to the Joint Legislative Budget Committee.
Author: Sarah Welker, Policy Analyst 

Mississippi’s Public Sector Workers Earn Less than their Counterparts in the Surrounding States

September 21, 2010

Filed under: Budget & Tax,Income & Working Families,Mississippi Economic Recovery Resources,Self-Sufficiency — admin @ 10:56 AM

The budget hearings kicked off yesterday with a presentation made by the Mississippi State Personnel Board (MSPB).  In a blog post earlier this year, we highlighted the importance of state workers to Mississippi’s economy.  During the presentation, several interesting pieces of information were shared:

  • There are 92,837 total employees in state government – 35% of whom are under the Mississippi State Personnel Board.
  • The average salary for a state employee covered by the MSPB is $34,022.  This amount is less than the Self Sufficiency Amount for a family of three in Hinds County.
  • Sixty-two percent (62%) of employees under the MSPB earn less than the average salary.

Finally, Mississippi’s public sector workers earn less than their counterparts in the surrounding states.

One final interesting piece of information includes the rate of state employment growth over the last decade.  In FY2001, there were 32,856 employees, on average, under the MSPB.  In FY2010, there were 32,800 employees on average.  As discussions around the budget tighten, public sector workers will undoubtedly draw attention.  It’s important to remember that these workers provide vital services, such as keeping communities safe, that Mississippians depend on in easy times and in difficult economic environments.

Authored by: Ed Sivak, MEPC Director  

Over 500,000 Mississippians Go Without Health Insurance in 2009

Filed under: Budget & Tax,Income & Working Families,Mississippi Economic Recovery Resources,Self-Sufficiency — admin @ 7:00 AM

The percentage of Mississippians covered by private insurance declining

The Census Bureau estimates that 502,000 people in Mississippi were without health insurance in 2009. The proportion of Mississippi’s children covered by health insurance has risen this decade. However, there were still 85,000 children in Mississippi (10.9%) without insurance coverage in 2008-2009. Overall, 17.6 percent of Mississippians lacked health insurance coverage during the same time period.

The data also reveal that private insurance coverage has fallen substantially this decade as employers and individuals find it increasingly difficult to pay for rising insurance premiums. The percentage of Mississippians covered by private insurance dropped to the lowest level of the decade at 53.1 percent. In 1999, 68 percent of Mississippi’s residents were covered by private insurance. 

Percent of Mississippians Covered by Private Insurance Declines to 53.1% in 2009
Mississippi and the United States, 1999-2009

The released health insurance data estimate that over half a million Mississippians are still without health insurance. The persistently large number of Mississippians without coverage, and the continual erosion of private coverage illustrate the importance of national health reform. The new health insurance exchanges and expanded Medicaid will enable many Mississippi families to secure health coverage and move closer to self-sufficiency.  

Source: U.S. Census Bureau Current Population Survey, 2009
Author: Sarah Welker, Policy Analyst
Printable Fact Sheet

Poverty Increases in Mississippi as Families Continue to Experience Economic Hardship During Current Recession

September 20, 2010

Filed under: Budget & Tax,Income & Working Families,Mississippi Economic Recovery Resources,Self-Sufficiency — admin @ 2:20 PM

On September 16th, the U.S. Census Bureau released preliminary 2009 data¹on poverty, income, and health insurance coverage across the United States.

  • In 2009, Mississippi’s poverty rate was 23.1 percent, a statistically significant increase from 2008 rate of 18.1 percent. The poverty rate for Mississippi’s children rose to 31.9%, equal to 250,000 children living in households with incomes below the federal poverty level. 
  • The nation’s official poverty rate in 2009 was 14.3 percent, up from 13.2 percent in 2008 — the second statistically significant annual increase in the poverty rate since 2004.
  • In 2009, median household income in Mississippi was statistically unchanged from 2008. Mississippi’s median household income was $35,693 in 2009- not statistically different from 2008. Half of Mississippi’s households have incomes below the median and half have incomes above it. Median household income in the United States in 2009 was $49,777. 

Poverty Rates Rise in 2009 for State Overall and for Mississippi’s Children

 

The official poverty data do not include additional support that families received from many Recovery Act provisions, including the Making Work Pay Credit expansions of the Child Tax Credit, EITC, and increased Supplemental Nutrition in 2009. Such assistance moderated the severity of poverty for thousands of Mississippians.

Many of these programs are scheduled to expire soon and the conclusion could result in additional families falling below the poverty line. Specifically, the federal program supporting the Mississippi STEPS program which has connected thousands of people to jobs will expire on September 30. Additional Unemployment Insurance weeks for the long-term unemployed will expire on November 30.  Finally, the new and expanded tax credits for working families expire after 2010. For Mississippians struggling to make ends meet, it is important that these provisions remain in place in the near term.

¹The Census Bureau will release more authoritative and detailed state-by-state estimates of poverty on September 28th. The data released today on the Census Bureau’s website are preliminary with regard to state poverty levels and the only data available on state health insurance trends since the recession began. On September 28, the Census will release estimates of state and local poverty as well as additional health insurance data from a different survey, the American Community Survey.

Source: U.S. Census Bureau Current Population Survey
Author: Sarah Welker, Policy Analyst 

Budget Discussions Begin for FY 2012 as Federal Stimulus Cliff Looms

Filed under: Budget & Tax — admin @ 11:18 AM

Starting September 20th the Joint Legislative Budget Committee will begin their annual budget hearings when agencies present and answer questions about their budget requests for the next year.   The hearings are open to the public and you can find the schedule here. 

Every year Joint Legislative Budget Committee members have to make tough decisions as the needs brought to light in the budget hearings are always greater than the funds available.  However, recent years have been even tougher due to the recession, and FY 2012 is projected to be the leanest year yet with federal stimulus funds ending.

The state has struggled to fund existing state services even with the aid from stimulus funds.  Most stimulus funds will end in FY 2011 creating a state budget “cliff ” as aid funds end before state revenue is projected to recover from the recession.  The dated figure below shows actual and projected state funding levels from FY 2008 to FY 2012.  

Mississippi State General Funds and Equivalents and ARRA Funds FY 2008-FY 2012, Actual and Projected

While no public data have been released on the size of the “cliff,” some budget makers cite figures ranging from $600 million to $1 billion depending on assumptions made about full funding of the Mississippi Adequate Education Program, the rolling forward of the extended FMAP and Education Jobs Funds and the use of Rainy Day Funds. 

State agencies have already dealt with successive rounds of budget cuts while at the same time dealing with greater needs for state services.  For the state to be competitive as prosperity returns, Mississippi needs to take a balanced approach to the budget crisis that includes raising revenues. 

During the course of the week, check back with the blog as MEPC plans to post information gleaned from the budget hearings.

Source:FY 2011 Executive Budget Recommendation, November 16, 2009
Author: Sara Miller, Senior Policy Analyst 

Census Bureau Releases 2009 Income, Poverty and Health Insurance Data

September 15, 2010

Filed under: Budget & Tax,Income & Working Families,Mississippi Economic Recovery Resources,Self-Sufficiency — admin @ 7:37 AM

Sunday’s Clarion Ledger foreshadowed the upcoming release of 2009 income, poverty and health insurance data from the Census Bureau. The data to be released on Thursday, September 16th will show a preliminary breakdown of key measures during the current recession and indicate how the recession continues to impact working families across the country. The data shown Thursday will also provide a first glance at data on health insurance coverage, poverty, and state median income in Mississippi.

The September 16th data is a preliminary release that will be followed by more detailed data on September 28th, when the Census Bureau will provide Mississippians with more in-depth data on state and local poverty and median income from a different survey, the American Community Survey.

Projections indicate that because of the economic hardship brought on during the current recession, the national poverty rate may have increased significantly from 2008 to 2009. The data is also the first released on how the recession has impacted the overall rates of health insurance coverage across the nation.

On Thursday, September 16th, the Mississippi Economic Policy Center will provide a timely analysis on the significance of 2008-2009 changes in health insurance coverage, poverty rates, and median income. Check out MEPC’s website on September 16th for blog postings and fact sheets that provide a Mississippi-specific analysis of the newly released data.

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