Difference between revisions of "Mississippi state budget"

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* [[Mississippi State Senate]]
 
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* [[Mississippi House of Representatives]]
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* [[Mississippi State Legislature]]
  
 
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Revision as of 14:28, 7 May 2014

Mississippi state budget

Flag of Mississippi.png
Budget calendar:  Annual
Fiscal year:  2014
State credit rating:  AA (as of May 2012)
Current governor:  Phil Bryant
Financial figures
GF expenses[1]:  $4.699 billion (estimated for FY 2013)
All funds expenses:  $19.417 (estimated for FY 2013)
Spending % change:  Green Arrow Up Darker.svg5.61%[2]
% from federal funding:  45.35%
State debt:  $54,686,815,000
Per capita state debt:  $18,321
Other state budgets
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Policypedia Budget Policy-logo-no background.png
This page contains information about budget processes and policy issues in Mississippi, including:
  • A summary of the budget drafting process
  • Trends in expenditures and revenues
  • Current and past fiscal year budget developments
  • Financial transparency measures

Between fiscal year 2009 and fiscal year 2013, Mississippi's total expenditures increased by approximately $2.035 billion, from $17.382 billion in 2009 to $19.417 billion in 2013. This represents an 11.71 percent increase, outpacing the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[3][4]

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[5][6]

  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.[6]

The governor is legally required to submit a balanced budget proposal. Likewise, the legislature is legally required to pass a balanced budget.[6]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[7]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."[7]
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."[7]
  • Federal funds: "Funds received directly from the federal government."[7]
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."[7]

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[7] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[7]
State General fund Federal funds Other funds Bonds Total Per capita expenditures
Mississippi $4,699 $8,274 $5,660 $784 $19,417 $6,491.36
Alabama $6,897 $9,541 $7,490 $189 $24,117 $4,989.32
Arkansas $4,746 $6,189 $10,447 $203 $21,585 $7,293.77
Louisiana $8,156 $12,311 $8,791 $404 $29,662 $6,412.75
Tennessee $12,622 $13,055 $5,394 $382 $31,453 $4,841.92
Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[8][9]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in Mississippi can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[7]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
Mississippi 16.9% 16.8% 5.8% 23.4% 1.8% 7.5% 27.7%
Alabama 20.9% 20.1% 0.2% 23.3% 2.5% 6.1% 27.0%
Arkansas 16.3% 16.2% 2.1% 21.4% 2.2% 5.8% 36.0%
Louisiana 18.4% 9.9% 0.6% 26.7% 2.9% 7.1% 34.4%
Tennessee 17.7% 12.8% 0.4% 30.7% 2.7% 6.4% 29.3%
Source: National Association of State Budget Officers

Expenditure trends

From 2008 to 2012, elementary and secondary education spending fell by 3.40 percent. During the same period, public assistance expenditures rose by more than five percent. The table below details changes in expenditures from 2008 to 2012.[7][10][11][12][13] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
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%
2008 20.3% 16.8% 0.2% 22.4% 2.2% 8.7% 29.4%
Change in % -3.40% 0.00% 5.60% 1.00% -0.40% -1.20% -1.70%
Source: National Association of State Budget Officers

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[7] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[7]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Mississippi $1,887 $1,480 $463 $145 $763 $4,738 $1,583.98
Alabama $1,945 $3,104 $376 $2 $1,887 $7,314 $1,513.12
Arkansas $2,125 $3,144 $431 $39 $475 $6,214 $2,099.77
Louisiana $2,853 $2,685 $340 $386 $1,839 $8,103 $1,751.82
Tennessee $6,643 $126 $1,083 $0 $3,551 $11,403 $1,755.39
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[8]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[7][10] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Mississippi ($ in millions)[7][10]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $1,887 $1,480 $463 $145 $763 $4,738 $1,583.98
2012 $1,855 $1,489 $505 $152 $767 $4,768 $1,596.54
2011 $1,791 $1,383 $448 $147 $732 $4,501 $1,511.47
2010 $1,781 $1,340 $403 $155 $818 $4,497 $1,514.12
2009 $1,922 $1,475 $422 $172 $739 $4,730 $1,602.31
Change in % -1.82% 0.34% 9.72% -15.70% 3.25% 0.17% -1.14%
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[8][9]
Source: National Association of State Budget Officers

State budgets by year

Fiscal year 2014

In Mississippi, the state legislature does not pass a single appropriations bill, but rather a series of appropriations bills that together comprise the state's budget.[14] Appropriations for fiscal year 2014 (including references to specific appropriations bills) can be accessed here.

Fiscal year 2013

See also: Mississippi state budget (2012-2013)

Fiscal year 2012

See also: Mississippi state budget (2011-2012)

Fiscal year 2011

See also: Mississippi state budget (2010-2011)

Fiscal year 2010

See also: Mississippi state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[7][11]

Historical state budget spending in Mississippi ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $4,495 24.4% $5,593 30.4% $7,945 43.2% $353 1.9% $18,386
2010-2011 $4,367 23.8% $5,325 29% $8,401 45.8% $267 1.5% $18,360
2009-2010 $4,454 19.6% $5,776 25.4% $12,109 53.2% $419 1.8% $22,758
Averages: $4,438.67 22% $5,564.67 28% $9,485 48% $346.333 2% $19,834.67
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Mississippi had a state debt of over $54 billion. Its state debt per capita was $18,321. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[15][16]

Total state debt in Mississippi[17]
Type Totals U.S. rank
Total state debt $54,686,815,000 26
Per capita debt $18,321 14
State and other fund expenditures $10,088,000,000 12

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 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[18]

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 15.59 percent drop. Likewise, unfunded liabilities increased from over $7.3 billion in fiscal year 2007 to more than $14.8 billion in fiscal year 2012.[19][20]

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.[21]

The table below lists the Standard and Poor's credit ranking for Mississippi from 2001 to 2012 (grades from surrounding states are provided for additional context).[21]

S&P credit ratings from 2001 to 2012
Mississippi Alabama Arkansas Louisiana Tennessee
2012 AA AA AA AA AA+
2011 AA AA AA AA AA+
2010 AA AA AA AA- AA+
2009 AA AA AA AA- AA+
2008 AA AA AA A+ AA+
2007 AA AA AA A AA+
2006 AA AA AA A AA+
2005 AA AA AA A AA
2004 AA AA AA A+ AA
2003 AA AA AA A+ AA
2002 AA AA AA A AA
2001 AA AA AA A AA

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[22]

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.[22]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
Mississippi 45.35% $7,725,294,000 1
Alabama 36.50% $8,112,509,000 11
Arkansas 34.47% $5,900,988,000 21
Louisiana 43.95% $11,136,334,000 2
Tennessee 41.02% $11,198,575,000 3

Stimulus

Mississippi received $2.37 billion in federal stimulus funding between February 2009 and June 2013.[23]

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.[24] Mississippi also received between $150 and $130 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.[25]

Budget transparency

Transparency evaluation
Mississippi Transparency
Searchability Y
600px-Yes check.png
Grants Y
600px-Yes check.png
Contracts Y
600px-Yes check.png
Line item expenditures Y
600px-Yes check.png
Dept./agency budgets Y
600px-Yes check.png
Public employee salaries P
Partial.png
Date of last evaluation unknown.
See also: Evaluation of Mississippi state website and Constitutional provisions regarding reading of bills

An official, statewide spending database is available online. Mississippi House Bill 101 (2008), the Mississippi Accountability and Transparency Act, mandated the creation of such a website.[26] The state also launched the Management and Reporting System.

Article 4, Section 59 of the state constitution provides that a bill must be read by title on three different days (this provision is dispensable by a two-thirds vote of the house in which the bill originated). A bill must bead in full immediately before a vote on final passage.

The table to the right is helpful in evaluating the level of transparency provided by the state's spending database.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Mississippi created a multi-measure transparency profile for Mississippi, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[27][28]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Mississippi tied for 33rd in the nation with 12 other states, earning four out of eight possible points.[28]

Mississippi - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures N
600px-Red x.png
"Generally Accepted Accounting Principles" budget Y
600px-Yes check.png
Multi-year forecasting N
600px-Red x.png
Annual cycle Y
600px-Yes check.png
Binding revenue forecast
{{{1}}}
Legislative revenue forecast N
600px-Red x.png
Non-partisan staff Y
600px-Yes check.png
Constitution or statutory tax/spend limitations N
600px-Red x.png
TOTAL 4

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[28]

U.S. PIRG "Following the Money" report

See also: Following the Money 2014 Report

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.[29] 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.[29]

Accounting principles

See also: Mississippi government accounting principles

The Mississippi State Auditor publishes audit reports online.[30][31]

The Joint Committee on Performance Evaluation and Expenditure Review (a standing committee created in 1973) provides legislative oversight. The committee publishes the following reports and reviews online:[32]

  • Performance evaluations
  • Investigations
  • Expenditure reviews

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. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
  3. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  4. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  5. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  6. 6.0 6.1 6.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  7. 7.00 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 7.12 7.13 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  8. 8.0 8.1 8.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  9. 9.0 9.1 United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  10. 10.0 10.1 10.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  11. 11.0 11.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  12. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  13. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  14. Mississippi Legislative Budget Office, "Budget Process Cycle," accessed April 24, 2014
  15. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  16. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  17. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  18. Pew Center on the States, "Widening Gap Update: Mississippi," June 18, 2012
  19. PERS of Mississippi, "2012 Comprehensive Annual Financial Report, Financial Section," accessed November 14, 2013
  20. PERS of Mississippi, "Report on the Annual Valuation of the Mississippi Municipal Retirement System, Prepared as of September 30, 2012," accessed November 14, 2013
  21. 21.0 21.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  22. 22.0 22.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  23. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  24. Reuters, "House passes state aid bill; Obama signs into law," August 10, 2010
  25. Federal Fund Information for States, “ARRA FMAP Extension and Education Jobs Fund Totals,” August 11, 2010
  26. National Taxpayers Union, "Nation's Largest Taxpayer Group Applauds Mississippi for Passing Spending Transparency Legislation," April 17, 2008
  27. Institute of Government and Public Affairs at University of Mississippi, "Home page," accessed February 21, 2014
  28. 28.0 28.1 28.2 Institute of Government and Public Affairs at University of Mississippi, "Budget Transparency Profiles - All 50 States," September 2011
  29. 29.0 29.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  30. Mississippi State Auditor, "Home page," accessed October 27, 2009
  31. Mississippi State Auditor, "Audit Reports," accessed October 27, 2009
  32. Joint Committee on Performance Evaluation and Expenditure Review, "Home page," accessed October 27, 2009