All but one month in FY 2010 saw revenue collections come in under estimate. In total, general fund revenue came in close to $400 million under the estimate used to create the FY 2010 budget.
FY 2010 Mississippi General Fund Collections Actual and Estimate
*preliminary data As a result of below estimate revenue collections, nearly $500 million was cut from the state budget in FY 2010. Some examples of the trickledown effect of budget cuts include increased class sizes and decreased teacher training. Both universities and community colleges approved tuition increases and the Department of Mental Health has cut services for caregivers. Other state workers are experiencing furloughs, decreased pay, or the loss of jobs altogether meaning fewer front line persons to manage Mississippi’s public structures.
Unfortunately, while the economy struggles to recover, the budget picture is not expected to get better any time soon. General Fund appropriations for FY 2011 are $369 million lower than FY 2010 appropriations. The expiration of stimulus funds will also hurt the state budget over the next couple of years.
One of the best short term opportunities for Mississippi includes state fiscal relief. A measure currently under debate in Congress would extend aid to the states for Medicaid. If it approved, Mississippi would receive $151 million in federal funds that would provide $110 million for current budget needs.
Long term, a balanced approach that includes raising state revenue is needed to protect the state’s investment in vital services like education and workforce development. These investments have been threatened by successive rounds of budget cuts, and remain vital to the state’s economic recovery.
Author: Sara Miller,Senior Policy Analyst
You know, I have to tell you, I really enjoy this blog and the insight from everyone who participates. I find it to be refreshing and very informative. I wish there were more blogs like it. Anyway, I felt it was about time I posted, I
Comment by Mike Harmon — July 2, 2010 @ 3:15 PM