Tax Revenues Drop $111 Million in First Quarter of FY 2010

Rep. Holland and Gov. Barbour discuss next year's tight state budget.

Mississippi's revenue projections through the next two fiscal years are looking grim. MPB's Carl Gibson reports on how lawmakers are bracing for impact.

"You're gonna see the big battle across the street."

State Representative Steve Holland of Plantersville says the battle is being waged between agency heads on how to best share next year's projected funds. He says it'll be hard for agencies to afford new hires in the future.

"If there's an agency that has 40 positions and they've only filled 30 of 'em in the last fiscal year, ten are going. that's a given in all budgets; we're just taking those out. And that, allegedly, is an equitable thing."

Just over 4.5 billion dollars has been projected for next fiscal year. Governor Haley Barbour says balancing the next budget means lawmakers will have to think creatively.

"This is not gonna be business as usual. The budget for Mississippi...it can't be more of the same. We're gonna have to get outside the box and do things very differently for 2011 and 2012."

Federal stimulus dollars will expire for Mississippi after fiscal year 2011. State Senator Hillman Frazier of Jackson says preparations for 2012 should include progressive taxation.

"Sometimes, raising additional revenue is less painful than some of the cuts we're looking at at his point in time. So once we present our budget, some of the [committee] members might say, 'Well, as opposed to making these cuts, it might be wiser to adjust our tax structure by raising additional revenue."

Projections show a drop in all tax revenue except tobacco taxes.