Executive Budget Recommendation: State Moving Into Fifth Year of Cuts Only Approach

December 27th, 2011

The final Executive Budget Recommendation (EBR) from Governor Barbour who leaves office in a few weeks was released December 21^st.

The table below shows the budget recommendation for state support funds in FY 2013 compared with FY 2012.

FY 2013 Executive Budget Recommendation for State Support Funds Compared with FY 2012

Total state support funds under the recommendation are $6 Million below FY 2012 appropriations. The expiration of federal recovery act dollars and the absence of new revenues contributed to the need to cut budgets.

On education line items, the Governor’s budget includes a recommendation for over $40 Million in cuts to MAEP—the statutory K-12 school funding formula. Higher education, including Universities and Community Colleges, is recommended for cuts of over $25Million.

The Department of Mental Health is recommended for cuts totaling only $3.5 Million. However, the Governor suggests these cuts be made by closing four mental health facilities and six crisis centers. The Governor recommends $7 Million in additional funding to transition services to community based programs.

Larger percentage cuts are recommended for Conservation Programs, Agricultural Programs, and the Mississippi Arts Commission. Most other categories are recommended for cuts between 1.5-3%. Those cuts do not seem as dramatic as the others, but they are recommended for programs that have endured year-after-year of budget cuts.

Despite the cuts approach, the EBR does make several notable recommendations to support at risk and working families. Specifically, recommendations to fully fund the Olivia Y settlement – a lawsuit that was settled due to problems identified within the child welfare system – and to increase student financial aid by $2.6 million are strong recommendations that should be followed in the next administration. Additionally, the common sense recommendation to increase the number of auditors at the Department of Revenue, if followed, will bring in more revenue by enhancing collection efforts.

At the end of the day, however, the state is moving into its fifth year of cuts. The cuts are coming as federal resources for recovery and reinvestment begin to go away. Furthermore, deficit reduction talks at the federal level suggest a long term erosion of federal support for state programs – a move that leaves Mississippi particularly exposed given its reliance on federal funding. To preserve the quality of and access to state services that are vital to moving the state forward a balanced approach, instead of a cuts only approach is needed.

Look for further analysis of both the legislative and executive budget recommendations in the coming weeks as we prepare for the legislative session.