Mississippi state budget and finances

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Mississippi budget and finances
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General information
Budget calendar:
Annual
Fiscal year:
2015
State credit rating:
AA (as of 2014)
Current governor:
Phil Bryant
Financial figures
Total spending (state and federal funds):
$18.7 billion (estimated for 2014)
Per capita spending:
$6,237.64 (estimated for 2014)
Total state tax collections:
$7.4 billion (2013)
Per capita tax collections:
$2,474.00 (2013)
State debt:
$54.7 billion (as of 2014)
Per capita state debt:
$18,321 (as of 2014)
State budgets and finances
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Total state expendituresState debtTax policy in Mississippi
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.
Between fiscal years 2013 and 2014, total government spending in Mississippi increased by approximately $948 million, from $17.7 billion in fiscal year 2013 to an estimated $18.7 billion in 2014. This represents a 5.3 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Mississippi a credit rating of AA.[1][2][3]
In 2012, approximately 45 percent of Mississippi's general revenues came from the federal government, a greater share than in any other state in the nation.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

In Mississippi in fiscal year 2014, total estimated government spending equaled $18.7 billion. Estimated per capita spending totaled $6,238.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
Mississippi $10,479 $8,197 $18,676 2,994,079 $6,237.64
Alabama $14,605 $9,288 $23,893 4,849,377 $4,927.02
Arkansas $16,077 $6,511 $22,588 2,966,369 $7,614.70
Louisiana $17,683 $11,091 $28,774 4,649,676 $6,188.39
Tennessee $18,832 $13,231 $32,063 6,549,352 $4,895.60
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in Mississippi can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[3]

In Mississippi in fiscal year 2013, transportation accounted for 6.7 percent of total state government spending, a greater share than in any neighboring state.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
Mississippi 16.4% 16.1% 5.9% 26.1% 2.0% 6.7% 26.7%
Alabama 20.4% 19.9% 0.2% 22.8% 2.4% 6.5% 27.7%
Arkansas 15.6% 15.4% 2.0% 21.0% 2.1% 5.8% 38.0%
Louisiana 19.3% 10.3% 0.5% 25.1% 3.0% 6.2% 35.7%
Tennessee 17.8% 13.9% 0.4% 30.8% 2.8% 6.1% 28.2%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2013, the share of the Mississippi state budget spent on public assistance increased from 0.2 percent to 5.9 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percentages)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 16.4% 16.1% 5.9% 26.1% 2% 6.7% 26.7%
2012 16.9% 16.8% 5.8% 23.4% 1.8% 7.5% 27.7%
2011 14.8% 13.0% 4.6% 18.5% 1.5% 5.9% 41.7%
2010 17.1% 15.3% 0.2% 22.9% 1.8% 7.3% 35.4%
2009 19.0% 16.6% 0.2% 26.4% 2.1% 7.9% 27.9%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.[9]

In Mississippi in 2013, total state tax collections equaled $7.4 billion. Per capita tax collections totaled $2,474.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
Mississippi $24,122 $4,571,294 $530,010 $1,755,424 $415,980 $105,895 $7,402,725 2,992,206 $2,474.00
Alabama $322,300 $4,707,375 $490,475 $3,202,520 $382,202 $161,597 $9,266,469 4,833,996 $1,916.94
Arkansas $1,022,066 $4,019,203 $356,920 $2,649,577 $402,874 $135,767 $8,586,407 2,958,765 $2,902.02
Louisiana $52,686 $4,974,642 $369,930 $2,739,983 $252,430 $834,158 $9,223,829 4,629,284 $1,992.50
Tennessee N/A $9,128,175 $1,421,174 $262,842 $1,256,173 $298,527 $12,366,891 6,497,269 $1,903.40
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
Mississippi tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In Mississippi, sales taxes and gross receipts accounted for nearly 62 percent of total state tax collections.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
Mississippi 0.33% 61.75% 7.16% 23.71% 5.62% 1.43%
Alabama 3.48% 50.8% 5.29% 34.56% 4.12% 1.74%
Arkansas 11.9% 46.81% 4.16% 30.86% 4.69% 1.58%
Louisiana 0.57% 53.93% 4.01% 29.71% 2.74% 9.04%
Tennessee N/A 73.81% 11.49% 2.13% 10.16% 2.41%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historic Mississippi budget and finance information

Fiscal year 2015

DocumentIcon.jpg See budget bill: Budget Summary for Fiscal Year 2015

Governor Phil Bryant announced his fiscal year 2015 budget proposal on November 13, 2013. Under the governor's proposal, total state source spending for fiscal year 2015 would have equaled approximately $6.1 billion, a 4.8 percent increase over fiscal year 2014.[10]

In April 2014, Bryant signed into law the fiscal year 2015 budget. The enacted budget totaled $6.1 billion and represented a 4.24 percent increase over fiscal year 2014.[10]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Mississippi had a state debt of approximately $54.7 billion. Its state debt per capita was $18,321. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[11]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
Mississippi $54,686,815,000 $18,321 14
Alabama $68,343,597,000 $14,173 26
Arkansas $37,704,936,000 $12,785 33
Louisiana $83,280,815,000 $18,097 15
Tennessee $41,049,738,000 $6,358 50
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: Mississippi public pensions and Mississippi public employee salaries

A 2012 report from the Pew Center on the States noted that Mississippi's pension system was funded at 64 percent at the close of fiscal year 2010, well below the 80 percent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[12]

Taken together, the funding ratio for the state's pension systems decreased from 73.48 percent in fiscal year 2007 to 57.89 percent in fiscal year 2012, a decrease of 15.59 percentage points, or 21.2 percent. Likewise, unfunded liabilities increased from over $7.3 billion in fiscal year 2007 to more than $14.8 billion in fiscal year 2012.[13][14]

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[15][16]

The table below lists the Standard and Poor's credit ratings for Mississippi and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[17]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Mississippi AA AA AA AA AA AA AA AA AA AA AA
Alabama AA AA AA AA AA AA AA AA AA AA AA
Arkansas AA AA AA AA AA AA AA AA AA AA AA
Louisiana AA AA AA AA AA- AA- A+ A A A A+
Tennessee AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[18]

The table below notes what share of Mississippi’s general revenues came from the federal government in 2012. Figures from surrounding states are provided for additional context.[18]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
Mississippi $7,725,294 45.35% 1
Alabama $8,112,509 36.5% 9
Arkansas $5,900,988 34.46% 21
Louisiana $11,136,334 43.96% 2
Tennessee $11,198,575 40.97% 3
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

Mississippi received $2.37 billion in federal stimulus funding between February 2009 and June 2013.[19]

After Congress approved federal funds for the states on August 10, 2010, Governor Haley Barbour said that Mississippi would be forced to rewrite its budget to qualify for $98 million in education funds, moving at least $50 million into education spending from public safety and health. "There was no justification for the federal government hijacking state budgets," Barbour said.[20] Mississippi also received between $130 and $150 million for Medicaid from the federal government under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that President Barack Obama signed into law on August 10, 2010.[21]

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[22][23]

  1. Budget instruction guidelines are sent to state agencies in June of the year preceding the start of the new fiscal year.
  2. State agencies submit their budget requests to the governor in August.
  3. Agency and public hearings are held in September and October.
  4. The governor submits his or her proposed budget to the state legislature in November (this deadline is extended to January for a newly-elected governor).
  5. The legislature typically adopts a budget in March or April. The fiscal year begins July 1.

Mississippi is one of 44 states in which the governor has line item veto authority.[23]

The governor is legally required to submit a balanced budget proposal. Likewise, the legislature is legally required to pass a balanced budget.[23]

Agencies, offices and committees

The following standing committees in the Mississippi Legislature deal with budget and finance matters:[24][25]

  1. Finance Committee, Mississippi State Senate
  2. Ways and Means Committee, Mississippi House of Representatives
  3. Appropriations Committee, Mississippi House of Representatives
  4. Appropriations Committee, Mississippi State Senate

The Mississippi State Auditor is responsible for assessing state and local governmental entities to ensure that public funds are properly used. The state auditor is elected every four years in partisan elections.[26]

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[27] According to the report, Mississippi received a grade of C+ and a numerical score of 79, indicating that Mississippi was "middling" in terms of transparency regarding state spending.[27]

Budget and finance ballot measures

Voting on
state and local
government budgets,
spending and finance
State finance.jpg
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
See also: Spending and finance on the ballot and List of Mississippi ballot measures

Ballotpedia has tracked no ballot measures relating to state and local budget and finance matters in Mississippi

Recent news

This section displays the most recent stories in a Google news search for the terms "Mississippi budget."

Some of the stories below may not be relevant to this page due to the nature of Google's news search engine.

Mississippi state budget and finances - Google News Feed

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Contact information

Mississippi Office of Budget and Fund Management
501 North West Street, Suite 1301-E
Jackson, Mississippi 39201
Telephone: 601-359-3402

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "Summaries of Fiscal Year 2015 Proposed and Enacted Budgets," July 11, 2014
  11. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  12. Pew Center on the States, "Widening Gap Update: Mississippi," June 18, 2012
  13. PERS of Mississippi, "2012 Comprehensive Annual Financial Report, Financial Section," accessed November 14, 2013
  14. PERS of Mississippi, "Report on the Annual Valuation of the Mississippi Municipal Retirement System, Prepared as of September 30, 2012," accessed November 14, 2013
  15. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  16. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  17. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  18. 18.0 18.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  19. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  20. Reuters, "House passes state aid bill; Obama signs into law," August 10, 2010
  21. Federal Fund Information for States, “ARRA FMAP Extension and Education Jobs Fund Totals,” August 11, 2010
  22. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  23. 23.0 23.1 23.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  24. Mississippi Legislature, "House of Representatives Committee Listing," accessed March 20, 2015
  25. Mississippi Legislature, "Mississippi State Senate Committee Listing," accessed March 20, 2015
  26. Mississippi Office of the State Auditor, "Home page," accessed March 18, 2015
  27. 27.0 27.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014