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The Institute for Truth in Accounting (IFTA) rates Mississippi “Tardy” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA did not consider Mississippi's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis did not include significant liabilities for the pension plans and for other post employment benefits, such as health care.<ref>[http://truthinaccounting.org/news/listing_article.asp?section=451&section2=451&CatID=3&ArticleSource=567 ''Institute for Truth in Accounting'', “The Truth About Balanced Budgets—A Fifty State Study,” Page 35]</ref> Mississippi's CAFRs were published online by the Mississippi Office of the State Auditor. The Mississippi Department of Finance and Administration prepares the state CAFRs.<ref>[http://www.osa.state.ms.us/doc-list.asp?DocType=Comprehensive+Annual+Financial+Report&Year= CAFRs]</ref>
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The Institute for Truth in Accounting (IFTA) rates Mississippi “Tardy” in filing the state’s [[Comprehensive Annual Financial Report]] (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA did not consider Mississippi's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis did not include significant liabilities for the pension plans and for other post employment benefits, such as health care.<ref>[http://truthinaccounting.org/news/listing_article.asp?section=451&section2=451&CatID=3&ArticleSource=567 ''Institute for Truth in Accounting'', “The Truth About Balanced Budgets—A Fifty State Study,” Page 35]</ref> Mississippi's CAFRs were published online by the Mississippi Office of the State Auditor. The Mississippi Department of Finance and Administration prepares the state CAFRs.<ref>[http://www.osa.state.ms.us/doc-list.asp?DocType=Comprehensive+Annual+Financial+Report&Year= CAFRs]</ref>
  
 
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Revision as of 08:40, 5 December 2013

Mississippi state budget

Flag of Mississippi.png
Budget calendar:  Annual
Fiscal year:  2013
Financial figures
GF expenses:  $5.54 million
Other state budgets
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Mississippi lawmakers approved a FY2013 General Fund budget of $5.54 billion.[1] The budget marks a slight increase in spending over FY2012.

The state operates on an annual budget cycle.[2] The state's fiscal year begins July 1 and was currently in FY2013.

In FY 2013, Mississippi had a total state debt of approximately $37,822,052,000 when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the FY2013 state budget gap.[3] The state debt was down slightly from FY2012 state debt total of $38,278,314,000.[4] Mississippi's total state debt per capita was $12,698.30.[5]

Federal Aid to State Budget

The chart below represents how much of the state’s budget comes from the federal government. The number was the corresponding ranking in relation to the rest of the nation (if #1, the state receives the highest percentage of federal funding in the nation):

State 2008 2009 2010 2011
Mississippi 46.76% (#1) 48.75% (#1) 50.69% (#1) 49.01% (#1)
  • Figures were calculated by dividing each state’s intergovernmental revenue into its general revenue.[6][7]

Fiscal Year 2014 State Budget

The Joint Legislative Budget Committee adopted a spending recommendation on Dec. 11, 2012, of $5.52-billion spending recommendation was $32.2 million less than FY2013. The budget proposal eliminates 2,082 vacant state government positions, and did not increase spending for most state agencies. The only increase in spending in the proposal was $20 million for bridge replacement on state-aid roads, an additional $2 million for teacher supply funds, $400,000 for the Forestry Commission, and $800,000 for salaries for appeals judges and prosecutors.[8]

The Budget Committee held public hearings In September 2012 to begin work on a spending plan for FY2014.[9]

The state funding formula, called the Mississippi Adequate Education Program, determines the dollar amount the school board must ask lawmakers to provide. For FY2014, the formula calls for $2.356 billion, meaning the state's education appropriation would have to rise 16 percent, or $321 million.[10]

The Joint Legislative Budget Committee's recommendation would spending nearly $300 million less than Gov. Phil Bryant's recommendation presented in Nov. 2012.[8]

Governor's Budget Recommendation

Bryant’s Fiscal Year 2014 budget calls for across the board cuts to state agencies of 1.5 percent. It utilizes a total of $5.8 billion in revenue and reserves nearly $100 million of Mississippi’s revenue as savings for fiscal year 2015. The recommendation also calls for at least $878.4 million for Medicaid, and says that depending on the actions of the federal government, $921 million or more could be needed.[11] The governor's recommendations can be found online.[12]

Fiscal Year 2013 State Budget

In March 2012, lawmakers added $130 million to the budget due to better-than-expected tax collections, which would mean the FY2013 budget would be 1.3 percent larger than it was in FY2012.[13]

Education

K-12 education received $2.035 billion in the FY2013 budget, a $19 million increase over FY2012, but $251 million less than the state funding formula, called the Mississippi Adequate Education Program, required.[14]

Reserves

The budget deposits $200 million into the state's reserves.[15]

One Time Funds

The Legislature used $466 billion in one-time money to fund recurring expenses – more than $100 million above what was used in the 2007 session.[1]

The Governor pushed for his Smart Budget Act, or performance-based budgeting, in which budget decisions were made based on whether state departments or agencies were accomplishing expected results.[16] He was unsuccessful.

Legislative Proposed Budget

The legislature passed most pieces of a $5.6 billion budget on April 28, 2012.[17]

Highlights of the approved budget include:

  • spending reductions for most state agencies;
  • maintained the funding level for universities so they would receive nearly the same amount they did in FY2012;
  • increased spending for K-12 schools and community colleges, although the budget was about $250 million short of full funding for the Mississippi Adequate Education Program, and which had been fully funded only two of the past 14 years;
  • approximately $200 million to be set aside in state reserves.

Lawmakers drafting the $5.6 billion proposed budget followed the "98 percent rule," meaning that they used only 98 percent of anticipated revenue in the budget, and of the 2 percent, part of it goes into cash reserves, and remaining part carries forward into the following year's budget. The rule had been waived by lawmakers for the previous four budgets.[18]

The education funding bill, House Bill 1593, can be found online. [19]

Senate Proposed Budget

Highlights of the Senate budget proposal include:[20]

  • a $23 million increase to K-12 education;
  • level funding for higher education;
  • level funding for Medicaid.

Sen. Terry Burton, vice-chair of the Senate Appropriations Committee, said that the state budget was $300 million less than last year due to the loss of federal funds. He said that 60% of the budget would fund education.[21]

Legislative budget writers want to reduce the state general fund appropriation for the state Department of Health to $20.7 million, although Health Department officials say they need $30 million just to meet basic needs. Only Montana, Nevada, New Hampshire, North Dakota and South Dakota spend less on their public health budgets than Mississippi. All had smaller populations.[21]

The Mississippi House voted Feb. 13, 2012, to change the state budget so that any lawmaker who wants to add money to a program must cut that same amount from other programs.[22]

Governor's Proposed Budget

Gov. Bryant proposed a FY2013 state budget that can be found online/ [23]

The governor's proposed budget initially cut funding to state agencies by 5.5 percent On March 27, 2012, however, the governor revised his proposed budget in light of increased revenue projections and he called for a 1.9 percent cut to agencies. He also proposed an extra $3 million for the Mississippi Highway Patrol and another $31.5 million for Medicaid.[24]

It had no new taxes and sets aside two percent of the state's revenue for the "rainy day" fund. It cuts 5.5% to state agencies. The budget recommendations were based on a $5.49 billion state budget for fiscal 2013 and include $4.56 billion in projected General Fund revenue. [25]

Highlights of the Governor's proposed budget include:[25][26]

  • fully fund the Mississippi Adequate Education Program at $2.02 billion, but $72.9 million of that amount would have to come from local school district reserves;
  • $763 million for Medicaid, the same rate at which it was funded in FY2012, although Center for Medicaid Services projects 36,000 new eligible enrollees which the governor said would work under a fee-for-service system that would save money and be more efficient than the current system.;
  • $26.9 million to financial aid for community colleges;
  • selling the state jet to generate $2 million

Lt. Gov. and Gov-elect Phil Bryant said he expects state departments and agencies to ask for $1 billion worth of new spending in FY2013. Gov. Haley Barbour would present his executive budget proposal in November 2011.[27]

Fiscal Year 2012 State Budget

The Mississippi state budget for FY2012 can be found online.[28]

Lawmakers approved a FY 2012 General Fund budget of $5.5 billion,[29] which was 2.7% larger than the FY2011 appropriated budget.[30] The increase comes despite the fact that the state would receive $200 million less in federal money.[16]

The end of FY2012, tax collections were $250 million, or 5.5 percent, higher than expectations.[31]

General Fund appropriations and reappropriations made by the legislature for FY2012 total $5,501,390,060. The legislature also appropriated $14,445,670,447 from special Fund sources and reappropriations including Federal Funds, Budget Contingency Funds, Educational Enhancement Funds, Health Care Expendable Funds and Tobacco Control program Funds for the operation of all agencies and functions during FY2012. The FY 2012 General Fund budget was 2.7% more than the Fiscal Year 2011 appropriated budget.[32]

Gov. Barbour said that the state was on track to had about $400 million in various reserve funds at the concusion of FY2012, and he opposed a House plan to combine $56.3 million from financial reserves with $122.6 million from an unanticipated Medicaid surplus to help pay for unspecified programs.[33]


Governor's proposed FY2012 state budget

Gov. Haley Barbour's FY2012 $5.5 billion budget recommendation[34] calls for an average 8% budget cut in light of a $634 million structural deficit. [35] Barbour explained that the cuts were necessary due to the end of federal stimulus funds in FY 2012, sluggish revenue collections and an increased demand for Medicaid.[35] The proposed budget reduces Medicaid reimbursement rates.[34] Cuts include less funding for public television, public libraries and community college sports. Barbour's budget also includes the consolidation of three historically colleges[34] and reducing the number of school districts by a third.[36]

The proposed budget raises no taxes or fees.[34] The proposal includes no annual pay raises for teachers.[34] Barbour's proposed budget maintains $185 million in reserves.[35]

Budget transparency

Mississippi had a statewide, official spending database online. The Mississippi House Bill 101 (2008), Mississippi Accountability and Transparency Act mandated the creation of such a website.[37] The state had also launched the State of Mississippi Management and Reporting System.[38]

Art. 4, Sec. 59 of the Mississippi state constitution provides that a bill must be read by title on three different days, dispensable by 2/3 of originating House; Read in full immediately before vote on final passage

Government tools

The following table was helpful in evaluating the level of transparency provided by a state spending and transparency database:

Criteria for evaluating spending databases
State Database Searchability Grants Contracts Line Item Expenditures Dept/Agency Budgets Public Employee Salary
Mississippi Transparency Y
600px-Yes check.png
Y
600px-Yes check.png
Y
600px-Yes check.png
Y
600px-Yes check.png
Y
600px-Yes check.png
P
Partial.png
See also: Evaluation of Mississippi state website
  • Mississippi Transparency provides salary and benefit totals by agency, but did not provide individual employee salary details.[39]

Multi-Measure Budget Transparency Profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Mississippi, which measures state transparency as of September 2011 using indicators from a range of organizations. These indicators measure both website transparency and other recognized facets of governmental transparency. In addition, IGPA presents 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.[40][41]

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[42][43]

Budget background

Mississipi's fiscal year runs July 1 to June 30. The Governor submits a recommended budget to the Legislature on November 15 of each year with an extended budget submission in January for a new Governor.[44] The Governor must trim spending as mandated by Mississippi Code §27-104-13, which requires the State Fiscal Officer to balance the budget when state revenue falls below estimates for the fiscal year.[45]

The budget process in the state of Mississippi was a year long evolution. Officially beginning in May state agencies prepare requests before submitting them to the Governor for consideration in October. But before submitting a recommended budget the Governor first consults a group composed of the state economist, the state fiscal officer, the state treasurer, the chairman of the state tax commission, and the director of the legislative budget office. The group provides an estimated revenue forecast for the upcoming fiscal year based on current economic indicators and the economy's growth.
On December 15 the legislative budget committee submits the balanced budget recommendation to the Legislature.

Budget figures

The following table provides a history of Mississippi's expenditures and gross domestic product (GDP).

Fiscal Year Expenditures (billions) GDP (billions)
2000 $15.4 [46] $64.3 [46]
2001 $16.3 [46] $66.0[46]
2002 $17.3[46] $68.1 [46]
2003 $18.4 [46] $72.3 [46]
2004 $19.5 [46] $76.5 [46]
2005 $20.0 [46] $79.5 [46]
2006 $22.1 [46] $84.6 [46]
2007 $24.9 [47] $987.7 [47]
2008 $28.0 [47] $91.8 [47]
2009 $31.6* [47] $90.6* [47]
2010 $35.5**[47] $92.9**[47]
  • NOTE: The figures for FY 2009 were not yet finalized.
    • NOTE: Figures were estimated and won't be finalized until the end of the fiscal year 2010.

FY 2010 budget figures

FY 2010 General Fund Budget:[48]

Total Funds Available $4,905,884,250
Total Appropriations $4,905,884,250
Projected Balance June 30, 2010 $0

39%, $1.9 billion of the FY 2010 General Fund revenue was from sales tax and 31%, $1.5 billion from individual income taxes. Education makes up 62%, $2.9 billion of General Fund expenditures, $2.1 billion for K-12 and $820 million for postsecondary education.[49]

General Fund Appropriations

FY2010 Compared with FY2009
Agency Appropriations FY09 Appropriations FY10 % Increase or Decrease % Total FY10 Appropriation
Legislative $25,975,417 $25,699,726 -1.06% 0.54%
Judiciary and Justice $61,781,166 $61,004,725 -1.26% 1.28%
Executive and Administrative $3,683,145 $3,512,117 -4.64% 0.07%
Fiscal Affairs $98,100,908 $94,180,378 -4.00% 1.98%
Public Education $2,258,445,881 $2,129,086,604 -5.73% 44.83%
Higher Education $849,013,054 $819.950.820 -3.42% 17.27%
Public Health $34,106,624 $31,790,911 -6.79% 0.67%
Hospitals and Hospital Schools $264,528,980 $220,418,554 -16.68% 4.64%
Agricultural and Economic Development $112,619,372 $113,599,572 +0.87% 2.39%
Conservation $55,301,770 $55,509,293 +0.38% 1.17%
Corrections $265,954,055 $263,071,632 -1.08% 5.54%
Social Welfare $523,154.383 $401,973,805 -23.16% 8.46%
Veterans' Affairs $95,453,092 $96,214,673 + 0.80% 2.03%
Local Assistance $84,600,000 $84,150.000 -0.53% 1.77%
Miscellaneous $1,406,859 $1,457,411 +3.59% 0.03%
Debt Service $289,547,871 $347,187,030 +19.91% 7.31%
Total General Fund Appropriations (Recurring) $5,023,672,577 $4,748,807,251 -5.47% 100.00%

Accounting principles

See also: Mississippi government accounting principles

The Mississippi State Auditor has audit reports published online.[50] [51]

Mississippi also had the Joint Committee on Performance Evaluation and Expenditure Review (a standing committee created in 1973) to provide legislative oversight, which publishes online:[52]

  • Performance evaluations
  • Investigations
  • Expenditure reviews

The Institute for Truth in Accounting (IFTA) rates Mississippi “Tardy” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA did not consider Mississippi's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis did not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[53] Mississippi's CAFRs were published online by the Mississippi Office of the State Auditor. The Mississippi Department of Finance and Administration prepares the state CAFRs.[54]

Credit Rating Fitch Moody's S&P
Mississippi[55] AA Aa3 AA[56]

Stimulus

Mississippi received $2.37 billion in federal stimulus funding between February 2009 and June 2013.[57]

After Congress approved federal funds for the states on August 10, 2010, Gov. Haley Barbour said 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.[58] Mississippi also received between $150 to $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 the President signed into law on August 10, 2010.[59][60]

Public Employees

See also: Mississippi public employee salaries and Mississippi public pensions

According to 2011 Census data, the state of Mississippi employed a total of 211,844 people.[61] Of those employees, 176,827 were full-time employees receiving a net pay of $563.2 million per month and 35,017 were part-time employees paid $40.7 million per month.[61]

See also

External links

Additional reading

References

  1. 1.0 1.1 The Northeast Mississippi Daily Journal "New budget still short of '08 peak" July 8, 2012
  2. National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting" April 2011
  3. State Budget Solutions "State Budget Solutions' third annual State Debt Report shows total state debt over $4 trillion" Aug. 28, 2012
  4. State Budget Solutions “Report reveals aggregate state debt exceeds $4 trillion” Oct. 24, 2011
  5. State Budget Solutions "State debt more than $37,000 per private worker, $13,000 per capita" Oct. 2, 2012
  6. US Census Federal Aid to State and Local Governments
  7. Tax Foundation' "Monday Map: Federal Aid to State Budgets. Accessed October 15, 2013
  8. 8.0 8.1 The Hattiesburg American "State budget proposal would cut jobs" Dec. 11, 2012
  9. The Clarion Ledger "Analysis: State revenue collections up but no joy" July 16, 2012
  10. The Clarion Ledger "Mississippi public schools to seek $320M increase for 2014 budget year" July 20, 2012
  11. Governor Phil Bryant's Office "Bryant releases budget recommendation for coming fiscal year" Nov. 14, 2012
  12. Governor's 2014 Budget Recommendations
  13. Businessweek "Mississippi lawmakers increase budget estimates" March 20, 2012
  14. The Clarion Ledger "Mississippi public schools to seek $320M increase for 2014 budget year" July 20, 2012
  15. The News Star "Budget turnarounds: Some states socking cash away" Jun 23, 2012
  16. 16.0 16.1 The Memphis Commercial Appeal "Barbour urges frugality for state" Dec. 2, 2011
  17. The Hattiesburg American "Lawmakers approve most parts of $5.6B state budget" April 28, 2012
  18. The Memphis Commercial Appeal "News Analysis: Lawmakers to follow '98 percent rule'" March 26, 2012
  19. HB 1593
  20. WLOX.com "Senate leaders release proposed budget" March 22, 2012
  21. 21.0 21.1 The Clarion Ledger "Health budget cut feared" Jan. 22, 2012
  22. The Clarion Ledger "Miss. House votes to alter budget process" Feb. 13, 2012
  23. Governor's Proposed FY 2013 Budget
  24. The Clarion Ledger "Gov. revises his budget" March 27, 2012
  25. 25.0 25.1 WJTV.com "Gov. Bryant Budget Recommendations" Jan. 31, 2012
  26. The Memphis Commerical Appeal "Mississippi Gov. Bryant's budget lops 5.5%" Feb. 1, 2012
  27. The Memphis Commercial Appeal "Mississippi state departments make funding pitches" Sept. 20, 2011
  28. Mississippi State Budget for FY 2012
  29. The Jacskon Clarion Ledger "State agencies seek big budget hikes" Sept. 20, 2011
  30. Mississippi Department of Finance and Administration "Calculated Funds Available for Funding Fiscal Year 2012 Budget" May 5, 2011
  31. The Clarion Ledger "Analysis: State revenue collections up but no joy" July 16, 2012
  32. Mississippi Department of Finance and Administration "Calculated Funds Available for Funding Fiscal Year 2012 Budget" May 5, 2011
  33. Bloomberg "Barbour to Legislature: Don't drain cash reserves" Feb. 4, 2011
  34. 34.0 34.1 34.2 34.3 34.4 Stateline.org "Mississippi budget proposal: Sign of those to come? " Nov. 16, 2010
  35. 35.0 35.1 35.2 The Clarion Ledger "Budget: Barbour plan brings more cuts" Nov. 16, 2010
  36. The Clarion Ledger "Mississippi governor spreads the pain in proposed budget cuts" Nov. 16, 2010
  37. National Taxpayers Union, "Nation's Largest Taxpayer Group Applauds Mississippi for Passing Spending Transparency Legislation," April 17, 2008
  38. State of Mississippi Management and Reporting System
  39. Mississippi Transparency Workforce
  40. Institute of Government and Public Affairs
  41. University of Illinois Transparency Profile for Mississippi
  42. [ University of Illinois 50 State Transparency Comparison
  43. University of Illinois State Transparency Profiles
  44. National Association of Budget Officers, "Budget Processes in the States," 2008
  45. Gulf Coast News, "Falling State Revenues Demand Reductions in FY 2010 Budget," September 3, 2009
  46. 46.00 46.01 46.02 46.03 46.04 46.05 46.06 46.07 46.08 46.09 46.10 46.11 46.12 46.13 US Government Spending,"Mississippi State and Local spending," retrieved February 27,2009
  47. 47.0 47.1 47.2 47.3 47.4 47.5 47.6 47.7 US Government Spending,"Mississippi State and Local spending," retrieved April 20,2010
  48. Joint Legislative Budget Committee, "Budget FY 2010," July 20, 2009
  49. Joint Legislative Budget Committee, "Budget FY 2010," July 20, 2009
  50. Mississippi State Auditor Web site, retrieved October 27, 2009
  51. audit reports
  52. Joint Committee on Performance Evaluation and Expenditure Review Web site, retrieved October 27, 2009
  53. Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  54. CAFRs
  55. State of Indiana, “State Credit Ratings-as of June 24, 2009"
  56. Pew Stateline Infographic on State Credit Ratings. Accessed September 26, 2013
  57. Recovery, "Stimulus Spending by State"
  58. Reuters "House passes state aid bill; Obama signs into law" August 10, 2010
  59. H.R. 1586
  60. Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010
  61. 61.0 61.1 2011 Mississippi Public Employment U.S. Census Data