Budget Requests Far Exceed Estimated Revenue

Mississippi's revenue shortfall continues to add up

Over the next few weeks state officials will compile tax revenue and expenditure figures to get a clear picture of available dollars to fund state agencies.MPB's Patty Davis reports.

During the first eight months of the year, liquor and wine sales in Mississippi increased by more than $523,000. But that was the only good news lawmakers heard in the final day of joint legislative budget hearings.

Pepper: One of them asked me if I could speak a little bit on some positive points about what's going on in the economy and my outlook, and I had trouble doing that. But they understand that the revenues will track the economy and the outlook for the economy is not much growth for several years.

State Economist Dr Phil Pepper said glimpses of good news in the economy, were not enough to ease the mood.

Pepper: In terms of housing starts or in terms of employment numbers in manufacturing, but the next month they'll go down. And I think they were expecting the negative news.

A team of officials including the state Treasurer, the legislative budget office and the tax commission will review projected tax income and expenditures for the state over the remainder of this fiscal year and into 2 thousand 11. Even before those numbers are in, Representative Steve Holland knows it will be baseline survival for state agencies next year.

Holland: This could be the worst situation we've faced in modern times as far as formulating a budget.
State agencies asked for $1.4 billion in increased spending for fiscal 2011 during last week's budget hearings. According to Senator Terry Burton, some critical needs will remain unfunded.

Burton: There's just no way we could totally fund education's request, even though it is the top priority. Mental Health is also a priority.

In a statement released Friday, Lt. Gov. Phil Bryant said tax revenues are down $31.7 million as of July, and if that trend continues, the revenue shortfall could be as much as $800 million for the upcoming year. Patty Davis MPB news.