Policy Matters

Thursday, the Mississippi Legislature was briefed by the state economist and the state treasurer on the state’s current economic growth, employment, General Fund revenue, bonding and future outlook.

Below are 4 key points made by State Economist Dr. Darrin Webb during the Legislative Economic Briefing at the Capitol on January 19^th.

1. Mississippi’s overall employment is not projected to reach 2000 levels until 2016. The state still has 55,000 fewer jobs than it did at the employment peak in February 2008.
2. Many communities continue to experience challenges after the recession. Forty-six Mississippi counties lost jobs from 2010 to 2011.
3. Mississippi’s General Fund collections are still down after the recession, and state revenue will not pass FY2008 levels for several years.
4. Federal expenditures represent 1 out of every 3 dollars of Mississippi’s economy.

FACTORS CONTRIBUTING TO SLOW GROWTH IN MISSISSIPPI

Dr. Webb placed particular emphasis on a number of reasons why the state is projected to have slower growth than the nation in coming years. The first was the state’s larger than average share of resources coming from federal dollars. Federal expenditures are not likely to increase substantially in the years ahead and could face cuts. Mississippi’s economy will be influenced by the lack of federal growth more than other states.

Additionally, human capital was mentioned as another weakness that will affect the state’s growth and competitiveness. Without the further development of a skilled and healthy working population, Mississippi’s ability to maintain and attract businesses will be hindered.

PATHWAYS TO RAISING ECONOMIC GROWTH AND OPPORTUNITY

The information provided today raises the urgency to pursue policies that increase growth and build adequate state revenue. Investing in pathways to increase educational attainment remains critical at all levels of the education spectrum.

Equally pressing is the need to consider a balanced approach that includes raising revenue instead of a cuts only approach to ensure that Mississippi has the resources needed to enhance the delivery of education from workforce training to secondary schools and post-secondary institutions.

LEGISLATIVE ECONOMIC BRIEFING (printable pdf)