December « 2010 « Policy Matters

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Trends in Employer-Sponsored Health Insurance in Mississippi

December 29, 2010

Filed under: Income & Working Families — admin @ 9:21 AM

Across the country, the cost of health insurance has risen substantially this decade. As a result, more and more employers are struggling to meet the cost of providing employer-sponsored health insurance for employees and their families. A recent report reveals that Mississippi ranks 50^th in the portion of residents under 65 covered by health insurance through their employer. Mississippi is 1 of 5 states where rates of job-based coverage declined by 10 percentage points or more this decade.¹ Almost half of Mississippi’s population under 65 no longer receives health insurance from their employer.

Overall, the percentage of Mississippi’s population under 65 receiving employer-sponsored insurance (ESI) dropped from 60.4% to 50.4% from 2000 to 2009. The decrease means that the number of Mississippians receiving job-based coverage dropped by 231,490, or 10 percentage points. Nationally, 60% of residents are covered by health insurance offered through their employer.

The table details rate of coverage through employer sponsored insurance (ESI) in 2000-01 and 2008-09 and ranks Mississippi’s coverage relative to the rest of the nation.²

CHANGES IN MISSISSIPPI’S EMPLOYER SPONSORED HEALTH INSURANCE COVERAGE

For many Mississippians in low-wage jobs, the absence of employer-sponsored insurance makes it challenging for these adults and their families to afford quality medical care on their own. These families are also particularly vulnerable to the cost of a medical emergency. Health insurance coverage is essential for helping many low-income families weather a medical emergency and access lower cost preventive care.

All the state’s residents, young and old, are more productive when they are healthy and can go to school and work. With almost half of Mississippi’s residents no longer receiving insurance through their work, it becomes all the more important that state policymakers carefully consider the equitable development and implementation of health care exchanges and Medicaid expansion during the next few years.

Author: Sarah Welker, Policy Analyst
Source: Economic Policy Institute Briefing Paper
*The survey combines samples from 2000-01 and 2008-09 to ensure the survey has a sufficient sample size for a more accurate analysis

¹5 states include: Arizona, Delaware, Indiana, Michigan, and Mississippi.
²Rankings include Washington D.C. bringing the total geographical areas included to 51.

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60 Minutes Piece on State Fiscal Crisis Reveals State Revenue Problems, Not Spending Problems

December 22, 2010

Filed under: Budget & Tax,Income & Working Families — admin @ 10:25 AM

A report on CBS’s Sunday night news program, 60 Minutes, provided a look at the state fiscal crisis, focusing on a few large states like New Jersey, California, and Illinois. While the piece has brought attention to the challenges ahead for state budgets, it fails to identify solutions that are part of a balanced approach to the fiscal crisis. The Center on Budget and Policy Priorities prepared a response to the report that can be seen here.

Mississippi – like other states – is struggling with revenue loss following the recession. However, to cast the current budget challenges as a spending problem fails to accurately portray Mississippi’s experience over the last decade. In Mississippi, state and local spending as a percentage of the economy is at the same level today as it was in 2002.

Mississippi State and Local Spending as a Percentage of Gross State Product 2002-2011

While Mississippi is facing deficits this year due to the end of federal stimulus funding, we are nowhere near the multi-billion dollar deficits of the states featured in the 60 minutes piece. Still, the state faces challenges that demand a balanced approach–one that includes revenue solutions for the state’s revenue problems instead of a cuts only approach that hurts working families.

Author: Sara Miller, Senior Policy Analyst
Source: State of Mississippi Budget 2002 through 2011 and Mississippi Economic Review and Outlook

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Joint Legislative Budget Committee Recommends More Cuts for State Agencies

December 15, 2010

Filed under: Budget & Tax,Income & Working Families,Mississippi Economic Recovery Resources — admin @ 9:52 AM

Monday, the Joint Legislative Budget Committee released its budget recommendation for FY 2012. The JLBC which includes legislative leaders from both the House and Senate releases a recommendation each year that is used as the starting point for debates about appropriations in the legislative session.

State revenue collections have not yet recovered from the recent recession and with most federal stimulus funds for state governments ended, the FY 2012 brings more cuts for state agencies.

The JLBC budget recommendation includes a reduction of state source funds of almost $65 million from the lean FY 2011 state budget that was itself the result of multiple rounds of cuts. The Mississippi Adequate Education Program is recommended for “level” funding from the FY 2011 budget, but the recommendation falls well short – almost a quarter of a billion dollars – of full funding. If the budget is funded as recommended, this will mark the fourth year in which MAEP was underfunded. Mid level funding for Community Colleges is also not attained.

The table below shows the JLBC budget recommendation by category compared with the FY 2011 budget.

Summary of JLBC FY 2012 State Source Budget Recommendation by Budget Category

More budget cuts for state agencies that have already dealt with multiple rounds of cuts will mean decreased access to and quality of state services like education, public safety, and mental health. A balanced approach that includes additional revenue is necessary to protect our investments in working Mississippians. These investments are vital for the state’s recovery and future prosperity.

Stay tuned for more detailed analysis of the JLBC budget recommendation throughout the week.

Author: Sara Miller, Senior Policy Analyst
Source: Joint Legislative Budget Committee Budget Recommendation FY 2012

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When Inadequate Revenues Result in Job Loss, Mississippi’s Families, Communities and Residents are Negatively Affected

December 10, 2010

Filed under: Budget & Tax,Income & Working Families,Mississippi Economic Recovery Resources,Self-Sufficiency — admin @ 11:43 AM

At the height of the recession, Mississippi experienced high levels of job loss. However, job loss has slowed in Mississippi over the last year, and October brought a very modest increase in jobs for the state. The figure below highlights the change in jobs for several key industries in Mississippi. The light green bars show job change from December 2007 – the start of the recession – to October 2009. The darker green bars illustrate job changes for each industry in the last year.

Comparing Jobs Lost and Gained by Industry

Three industries have seen job loss over the last year compared to four industries with modest increases. In Mississippi, housing starts remain low and show no signs of substantially improving soon. The result is a continued decrease in construction employment over the last year. Like construction, manufacturing jobs decreased in both periods.

Healthcare and education services experienced job gains during both periods.

In this series, Government includes public school teachers, law enforcement officers, highway patrol, librarians, and local officials. Government is the only series to increase in the beginning of the recession and then substantially decrease over the last year.

In recent months, private sector employment has grown modestly, but Mississippi’s economic recovery remains weak. Revenues for FY2012 are only projected to increase 1% over FY2011. Inadequate revenues have directly affected public sector jobs as seen in the decline in government employment over the last year.

Mississippi’s public workers – teachers and troopers for example – provide important services and put money back into local economies. When inadequate revenues result in job loss, Mississippi’s families, communities and residents are negatively affected – underscoring the need to be creative and identify additional revenue.

Author: Sarah Welker, Policy Analyst
Source: Department of Labor. Regional and State Employment and Unemployment Summary. November 2010.

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Listen to MEPC Director Ed Sivak Live at 5:05 on 97.3 FM (Jackson)

December 3, 2010

Filed under: Budget & Tax,Income & Working Families,Mississippi Economic Recovery Resources,Predatory Lending,Self-Sufficiency — admin @ 2:28 PM

Ed Sivak will be a guest tonight at 5:05 p.m. on the radio show On Deadline hosted by Sid Salter.

Tune in to SuperTalk Mississippi ( find your local station) during your drive time to listen to MEPC Director, Ed Sivak discuss the most challenging economic issues currently facing Mississippi’s working families and explain the need for a balanced approach to the state budget crisis.

Learn more tonight at 5:05 p.m.. You can also listen online at http://www.supertalk.fm/Sid-Salter/5043194

To stay informed on policy issues effecting Mississippi’s working families go to www.mepconline.org, sign up for email updates, and subscribe to our RSS feed.

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State General Fund Revenue Expected to Remain Level for FY 2012; Total Budget Hole Still Looms

December 2, 2010

Filed under: Uncategorized — admin @ 9:45 AM

In November the Revenue Estimating Group released its revised FY 2011 general fund estimate along with its first general fund estimate for FY 2012. The Revenue Estimating Group provides the estimate on which the Governor and the Joint Legislative Budget Committee base their budget recommendations for the upcoming fiscal year.

The revised FY 2011 general fund estimate is $46 million over the estimate used to create current year appropriations. The general fund estimate for FY 2012 is expected to come in $57 million above FY 2011 revenue. The slight uptick in estimated revenue from FY 2011 to FY 2012 represents a 1% increase. Figure 1 shows the difference between estimated general fund revenue from FY 2011 and FY 2012 by major source.

Figure 1: Mississippi General Fund Revenue Estimates for FY 2011 and FY 2012 by Major Source

While general fund revenues are beginning to show some growth after declines during the recession, the slight growth will not be enough to keep up with remaining high levels of need, increases in costs and the end of federal stimulus funds.

For more information about the end of stimulus funding and for a balanced approach to addressing the expiration of the American Recovery and Reinvestment Act, click here.

Author: Sara Miller, Senior Policy Analyst
Source: Revenue Estimating Group, November 2010

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