Budget Talks Breakdown

Representative Johnny Stringer (Left, D-Montrose) and Senator Alan Nunnelee (R-Tupelo) during budget talks Friday

The state budget for next fiscal year is still in limbo, following a breakdown in negotiations. MPB’s Stephen Koranda has more.

The talks stalled because of a disagreement on taxing hospitals to help fill a 90 million dollar deficit in the Medicaid program. On Friday lawmakers agreed to take that provision off the table, said Alan Nunnelee of Tupelo, chair of the Senate Appropriations Committee.

“We’ve worked hard, both sides have worked hard for two weeks. But we still have not been able to reach that agreement, so now we’re going to go back to where we were two weeks ago and build a budget without a hospital assessment.”

This means when a budget is developed, it could include state agency cuts to make up the shortfall. This is something house members want to avoid, says House Appropriations Chairman, Johnny Stringer of Montrose.

“They’re talking about laying off doctors, nurses, cutting the Health Department when we have the swine flu in the state. Lay off highway patrolmen. The House refuses to do that.”

House members point to almost a billion dollars in state reserves, in the rainy day fund, Hurricane Disaster Relief Fund, and Health Care Trust Fund. Some of this money could be used to help cover the shortfall, but Nunnelee says he’ll put his foot down about using rainy day money, because of concerns about future budgets.

“We’ve already agreed, 95 million dollars out of the rainy day fund. There will be no more money coming out of the rainy day fund.”

Lawmakers had hoped to have a budget proposal ready for the legislature tomorrow, when the session resumes.