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MISSISSIPPI JOB WATCH, October 2010

November 30, 2010

Filed under: Income & Working Families — admin @ 11:28 AM

Mississippi’s unemployment rate improved slightly to 9.7% from September to October 2010. From September to October, Mississippi’s total nonfarm employment grew by 1,300 jobs. The modest increase in jobs last month is positive for the state’s overall employment situation, but significantly larger gains in employment will be necessary for Mississippi to reach pre-recession levels of employment. Taking a broader look at Mississippi’s overall employment, 70,100 fewer jobs exist in Mississippi than before the recession, and the state has lost 6.1% of the jobs that existed at the end of 2007.

The manufacturing and construction sectors continue to experience job loss even 34 months since the recession’s start in December 2007. According to the Bureau of Labor Statistics, October brought a loss of an additional 900 manufacturing and 1,300 construction jobs. Overall, manufacturing employment in the state has fallen by 19.1%. Construction employment has fallen even more drastically, and the industry now employs 16,200 fewer persons than in December 2007 (see table for more).

As of October 2010, Mississippi had 70,100 fewer jobs in the state than when the recession began. The figure below shows monthly changes in employment as well as the cumulative effect of monthly job changes over the 34 months since the recession began. Since August 2010 the state has experienced a modest increase in the number of jobs available. July 2010 marked the low point of available jobs in Mississippi with a cumulative loss of 77,800 jobs.

State economists project it will be 2015 before Mississippi has the same number of people employed as it did in 2000. The job loss associated with the current recession has been longer and more pronounced than previous recessions. The depth and persistence of job loss across the state continues to impact the well-being and economic security of thousands of working families across Mississippi.

Source: Economic Policy Institute analysis of Bureau of Labor Statistics data
Author: Sarah Welker, Policy Analyst

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Supplemental Nutrition Assistance Program (SNAP) Helps Families Make Ends Meet in Current Recession

November 24, 2010

Filed under: Income & Working Families,Mississippi Economic Recovery Resources,Self-Sufficiency — admin @ 10:30 AM

Programs that ensure low-income, working families have adequate resources for food have become more important as unemployment and poverty rise during the current recession. In Mississippi, in September 2010, over 125,000 individuals were unemployed and seeking work. Hundreds of thousands more have had to take part-time work, had their hours cut, or are in jobs that pay wages inadequate to support their families. All of these families may be struggling to make ends meet and in need of additional support.

SNAP, formerly the Food Stamp program, provides nutrition assistance, so adults experiencing periods of economic insecurity can provide adequate meals for their families. Without this support, many families would have their monthly budget for food reduced, or would have to sacrifice their spending on other needs like rent, gas, utilities, and medical care.

With thousands of families experiencing periods of unemployment or reduced hours, SNAP has responded to the needs of Mississippi’s families. The figure below illustrates the rise in SNAP caseloads since January 2007, and the rise in unemployment over the same time period. In fact, the percent change in the unemployed and the percent change in SNAP caseloads since January 2007 has been relatively similar with the number of unemployed individuals rising 39.6 percent (89,726 to 125,311) and the number of SNAP cases rising 41.5 percent (425,009 to 601,486).

Mississippi Unemployed Individuals and SNAP Participants, 2007-2010

Although the percent change is similar, SNAP caseloads have clearly risen dramatically in response to a growing need over the last three years recession. SNAP caseloads in Mississippi surpassed 600,000 in September 2010, an all-time high for monthly participants since tracking began†. The rise in SNAP caseloads underscores the widespread economic strain being felt by households across Mississippi.

The economic downturn has generated increased demand for many programs that help families make ends meet. For the more than 600,000 participants in Mississippi, SNAP benefits provide one life line for weathering the loss of income that comes with job loss.

See our fact sheet: For additional information on Mississippi’s rate of food insecurity, the economic impact on Mississippi’s local economies, and the temporary reforms to SNAP that have supported thousands of Mississippi low-income households, see our latest fact sheet.

Author: Sarah Welker, Policy Analyst
Sources: USDA Economic Research Service; Bureau of Labor Statistics, Local Area Unemployment Statistics
†Census Bureau Small Area Income and Poverty Estimates; MS Department of Human Services

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“Level” Funding is not Full Funding: State Would Fall Nearly a Quarter Billion Dollars Short of Fully Funding Education

November 22, 2010

Filed under: Budget & Tax — admin @ 8:36 AM

The Executive Budget Recommendation calls for “level” funding of the Mississippi Adequate Education Program. It is important to note, however, that level funding only means that the amount of state support dollars available for funding education in 2012 would be the same as in 2011. Under this scenario, Mississippi will still be nearly a quarter of a billion dollars short of fully funding education. The chart below shows the gap:

With the current “level” of funding, class sizes have swelled. For example, one kindergarten classroom has 34 children. Many classrooms across the state have lost their teaching assistants due to budget cuts and individual instruction time has been reduced.

For the state to be competitive, investment in education remains essential and will require a balanced approach that includes revenues.

Source: Mississippi Department of Education
Author: Ed Sivak, MEPC Director

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Joint Legislative Budget Committee Update

November 18, 2010

Filed under: Budget & Tax,Income & Working Families,Mississippi Economic Recovery Resources — admin @ 10:32 AM

The Joint Legislative Budget Committee approved a possible plan for identifying revenue sources for the FY2012 budget. The spending priorities will be outlined on December 8 at 10am in the next round of budget hearings. The sources of funds identified included the following:

Many of the funds identified above were also identified in the Governor’s Budget Recommendation. In the development of the budget recommendation, only existing revenue sources are used by the Joint Legislative Budget Committee to set the level of funds available for appropriations in the next fiscal year. With a few exceptions – a balanced approach that includes revenues has not been a central part of the budget recommendation deliberations.

As the budget debate unfolds, revenue options that preserve investments in education at all levels, public safety and health care should be a part of the conversation and among the strategies to position the state to move forward over the next couple of years.

Author: Ed Sivak, MEPC Director

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Cuts Only Approach Persists in Governor’s Budget Recommendation for FY 2012

November 16, 2010

Filed under: Budget & Tax,Income & Working Families,Mississippi Economic Recovery Resources — admin @ 3:17 PM

Governor Barbour’s budget recommendation for FY 2012 released yesterday calls for more cuts in response to the ongoing budget crisis. The Governor’s budget recommendation is required by law to be submitted to the Legislature in advance of the legislative session. The Joint Legislative Budget Committee will also submit a recommendation, which will be used as the starting point for debates on appropriations for FY 2012.

The recommendation calls for most agencies to have an additional 8% cut in state funds. The Governor recommends level funding for FY 2012 for the Mississippi Adequate Education Program (MAEP) which funds state schools but includes some federal funding in the FY 2012 budget that was awarded during this budget year and falls far short of fully funding MAEP. Though economists report that the recession has ended, many Mississippi families are still struggling with unemployment and state agencies are still dealing with the resulting increased demand for services.

Meanwhile, federal stimulus funds are ending and state revenues have not yet recovered. After successive rounds of state budget cuts, according to the Executive Budget Recommendation, most state agencies are operating with 15-30% less annual funding than they had three years ago. According to the Governor, the state faces a $634 million shortfall for FY 2012 and an “enormous structural shortfall” that will persist for several years.

Throughout the recommendation, the Governor aptly illustrates the depth and breadth of the state’s ongoing revenue problem, but falls well short of providing a balanced approach to solving the state budget crisis. The cuts will mean, among other things, more layoffs, closure of mental health facilities, and larger class sizes. A continued cuts only approach, instead of a balanced approach that includes revenues will continue to limit our ability to invest in recovery through education.

Look for more detailed analysis of the Governor’s Budget Recommendation throughout the week on our website.  

Author: Sara Miller, Senior Policy Analyst

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Mississippi Income Tax Brackets Remain Unchanged for Twenty Seven Years

November 10, 2010

Filed under: Budget & Tax,Income & Working Families — admin @ 7:30 AM

In the last twenty five years median income in Mississippi has risen from $15,430 in 1984 (the year the current state income tax brackets were made permanent) to $35,078 in 2009. Meanwhile, state income tax brackets remain unchanged—becoming less progressive as incomes rise due to inflation.

Mississippi state income tax brackets are as follows:

3% on the first $5,000 of taxable income
4% on the next $5,000, and
5% on taxable income over $10,000

When the current income tax brackets were created, the top bracket was under the median household income by about $5,000. In 2009, median income was about $25,000 over the top income tax bracket.

Income taxes with a graduated rate structure are designed to be progressive, meaning persons with higher incomes pay more in taxes than those with a lower income. Even in 1984, Mississippi’s income tax was mostly flat with a top bracket that started at $10,000. Both then and now, families making $30,000 or $300,000 can find themselves on the same tax bracket. When tax brackets are not updated over time, the income tax becomes less and less progressive as more and more families have income that falls under the top bracket due to inflation.

Source: U.S. Census Bureau Current Population Survey
Author: Sara Miller, Senior Policy Analyst

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Dick Molpus Keynote Speech from 2010 Annual Policy Conference Now Online

November 8, 2010

Filed under: 2010 Annual Policy Conference — admin @ 2:00 AM

The keynote for the 2010 Annual Policy Conference was delivered by education advocate, businessman and former Secretary of State, Dick Molpus. The speech detailed Mississippi’s historic legislative struggles with combating poverty. You can now watch the full speech on our website.

If you were unable to attend this year’s conference you can find much of the content from our annual event on the conferences pages of mepconline.org.

The items listed below are available for both the 2009 and 2010 conferences.

Opening Plenary Presentations
Break Out Session Presentations
Keynote Speech and Closing

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Breakout Session Wrap Up: Predatory Lending in Mississippi

November 4, 2010

Filed under: 2010 Annual Policy Conference,Predatory Lending — Tags: 2010 Annual Policy Conference, Budget & Tax, Income & Working Families, Mississippi Economic Recovery Resources, Predatory Lending — admin @ 10:09 AM

Payday loans have had a negative impact on working families and communities in Mississippi. During the 2010 Annual Policy Conference, a breakout session entitled “The High Cost of Being Poor: Lending Reform in Mississippi” focused on the types of borrowers most often using payday lending services and the effects those services have on the communities in which they operate.

One of the concepts discussed was the high prevalence of Mississippi’s underbanked population with low-incomes. Underbanked means that an individual has a checking or savings account but relies on alternative financial services and has used non-bank money orders, non-bank check cashing services, payday loans, rent-to own agreements, or pawnshops at least once or twice a year or refund anticipation loans at least once in the past five years.

The finding helps explain one of the reasons why payday lenders tend to locate on main thoroughfares in or near economically distressed areas – access to potential customers. A number of local governments have expressed a desire to limit the number of check cashers due to the negative effects associated with high concentrations of those types of entities. The city of Ridgeland, for example, restricted the location of check cashers, title lenders and pawn shops due to their “blighting effect.” For more information on how to get involved with actions to reduce high cost lending in Mississippi readers can go to the website for the Mississippians for Fair Lending Coalition.

Source: FDIC National Survey of Unbanked and Underbanked Households
Author: Ed Sivak, MEPC Director

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2010 Annual Policy Conference Pictures Now Online

November 3, 2010

Filed under: 2010 Annual Policy Conference — Tags: 2010 Annual Policy Conference — admin @ 3:39 PM

Pictures from the 2010 Annual Policy Conference are now available at mepconline.org.

Click the link below to go directly to the photo gallery.
http://mepconline.com/gallery/index.php?galleryID=1&albumID=1&groupID=3

Video of Dick Molpus’s keynote speech will also be available on our site soon along with more event photos.

You can find additional resources from this year’s conference on the 2010 Conference Presentation page along with a link to the post-conference survey.

If you haven’t taken advantage of the opportunity to give anonymous feedback, please take a quick minute to do so. It is completely confidential and your comments are highly valued.

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