Economist says Miss. may not meet revenue estimate for ‘O8
JACKSON, Miss. (AP) - Legislative leaders were told Thursday that Mississippi’s economic outlook shows slow growth, and it’s possible that state tax collections will be lower than expected this year.
“With the slowing economy, it’s bad news on top of bad news,” State Economist Phil Pepper said during a fiscal briefing at the state Capitol.
Pepper said there’s been slow growth in retail sales, and the national housing crisis has had a ripple effect in Mississippi.
The revenue estimate for the current fiscal year, which started last July 1, is $5.1 billion.
“The economic outlook is not as good as it was when we set the estimate. We’re at risk of not making the estimate,” Pepper said.
The revenue situation makes budget decisions even more difficult for lawmakers. Several agencies are asking for tens of millions of dollars to continue their operations through June 30.
The largest deficit appropriation request comes from Medicaid at about $87 million. And, Treasurer Tate Reeves said Thursday he would ask lawmakers for an additional $40 million to help pay off the state’s long-term debt.
Senate Appropriations Chairman Alan Nunnelee, R-Tupelo, said he’s open to suggestions about solving the funding problem.
“We don’t have $90 million in the general fund to fill that hole,” Nunnelee said, referring to Medicaid. “I’m looking for options.”
The 2008 Legislature is now in its second week. Lawmakers have about four months to craft a spending plan for the fiscal year that starts July 1.
Also ….
Miss. lawmakers shorten session, set earlier budget deadlines
By EMILY WAGSTER PETTUS
Associated Press Writer
JACKSON, Miss. (AP) _ Mississippi lawmakers have shortened their 2008 session and have taken a “giant step” in opening up the state budget process by setting earlier deadlines and giving people more time to examine the final versions of spending bills, the Senate Appropriations Committee chairman says.
“This is a monumental occasion in state government,” Sen. Alan Nunnelee, R-Tupelo, said Thursday. “I’m convinced that the most difficult thing to change in this entire body is to change the way we do business.”
The earlier deadlines are part of the House and Senate operating rules.
The House approved the rules Wednesday and the Senate approved them Thursday. Lawmakers are in the second week of their 2008 session. Now that the rules are in place, legislators can get down to the serious business they were elected to do such as setting education policies and filling the budget hole for Medicaid.
The new rules shorten the 125-day session to 103 days — a change that could save anywhere from $100,000 to $500,000, according to legislative leaders.
This is the first year of the four-year term. The first year’s session is usually 125 days to give new officials time to learn their jobs. Sessions in the second, third and fourth years are 90 days.
Republican Gov. Haley Barbour is back for a second term. The last time Mississippi had a second-term governor was in 1996, and legislators shortened the session that year.
Under the new budget-writing deadline, final versions of spending bills will be filed on the last Wednesday of the session, and the two chambers will start voting on those bills two days later. They will have to finish the process by the following Monday.
Until now, lawmakers’ deadline to file budget bills had been on the final Saturday of the session, then both chambers would start voting on the bills the next day and had to complete the process by Monday.
Setting an earlier deadline gives lawmakers and the public, more time to study the final versions of spending bills. And it will put a dent in the last-minute, behind-the-scenes wrangling that gives the Appropriations chairmen their power and keeps lobbyists employed.
Read more about the Legislative session in Friday’s Daily Journal.