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Mississippi State and Local Government Revenue FY 2009

December 12, 2011


This past October, the US Census Bureau released
state specific data on state and local government finances.  The report included data on revenue collections from sources such as income taxes, property taxes, and general sales and was used to calculate the two measures most commonly used to compare state and local tax revenue levels—revenue as a percent of personal income and revenue per capita.

Why Do These Revenue Calculations Matter?

Interestingly, Mississippi was in the middle of the pack among state and local tax revenue as a percentage of total personal income, but was near the end of the ranks when considering state and local tax revenue per capita.  Revenue as a percent of personal income and revenue per capita are just two ways of viewing state revenue.  However, the difference between the two measures highlights the regressive nature of Mississippi’s overall tax system.

You can read more about our state’s rankings in MEPC’s fact sheet Mississippi’s State and Local Government Revenue FY 2009.

Author: Francinia D. McKeithan, Policy Analyst/ SFAI Policy Fellow

 

Cyber Monday Not a Good Deal for State Revenue

November 28, 2011

Filed under: Uncategorized — Tags: , — admin @ 9:00 AM

Today is Cyber Monday, a day in which online retailers offer discounts to holiday shoppers.  It began as online retailers observed significant increases in sales on the Monday after Thanksgiving.  According to comScore, last year’s cyber Monday sales reached over $1 billion dollars and were up 16% over the previous year.

Cyber Monday also holds significance for the state budget.  Why?

While some internet retailers remit sales tax to the state of Mississippi, they are not required to collect sales taxes. Federal tax law does not require an out of state retailer (whether online or mail-order) to collect sales tax unless it has a physical presence in the state.  If Mississippians make purchases online and the retailer does not collect the sales tax, the state loses revenue that could have been used for the education of children, to keep college affordable or to create healthy families.

Does that mean that taxes are not owed on the items purchased?  No.

If sales taxes are not collected on any item purchased via the internet or mail order, the consumer owes a use tax on that item equal to what the sales tax would have been if it were purchased at a “brick and mortar” store.  Use taxes may be paid by filing with the Mississippi Department of Revenue.

Rising internet sales are a potential threat to the adequacy of Mississippi’s system of collecting revenue – a system that relies heavily on the sales tax.  This growing imbalance also creates a playing field that is not level among local small businesses and out of state retailers.  If out of state retailers can offer products similar to products sold by local businesses for lower prices because of the absence of a requirement to collect a use tax, then local businesses could be affected by the drop in demand for their goods.

Many states are looking at ways to take action to require online vendors to collect sales tax.

More information on internet sales and the sales tax will be available in MEPC’s upcoming report on threats to state revenue.

Author Sara Miller, Senior Policy Ananlyst

Community College Enrollment in Online Courses Rises Substantially this Decade

January 25, 2011

Filed under: Uncategorized — admin @ 2:09 PM

Over the last decade, increased internet access and a growing number of online course offerings have led to a rising number of students enrolling in online courses offered by community colleges and universities. Mississippi’s community college system has been no exception to this trend.

The combination of increased availability of online courses and more adults seeking additional training and education during the economic downturn has resulted in a substantial increase in online course enrollment through the MS Virtual Community College (MSVCC). In 2001, headcount enrollment in online courses was 4,781 students. By the fall of 2010, MSVCC’s headcount enrollment had grown to 28,427 students taking a total of 65,096 courses. 

As enrollment in online classes has risen sharply this decade, the average number of classes students take online is rising as well. Average courses taken per student grew from 1.73 courses in Fall 2001 to 2.29 courses per student in Fall 2010.

Students enroll in online courses by registering at their local community college, and tuition for online courses matches the cost of taking courses on a community college campus. Courses varying from “Remedial English” to “Medical Terminology II” can be taken online, and students can complete assignments at any time of the day or night. Students complete all assignments online with the exception of at least one proctored test that students taken on their community college campus.

For Mississippi’s adults that are working, caring for children, or living in communities far away from the nearest community college campus, online courses may play a valuable role in helping adults gain skills and in receiving course credit building to a postsecondary certificate and degree. 

Author: Sarah Welker, Policy Analyst

Source: “Facts about Mississippi Community and Junior Colleges”. Handout from January 20, 2011 at House of Representatives Appropriations Committee hearing for the State Board for Community and Junior Colleges.  Mississippi Virtual Community College Online. http://www.msvcc.org/


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