Fiscal Year 2011 State Budget Wrap Up

August 10th, 2011

Fiscal Year (FY) 2011 ended June 30 with revenues up slightly from estimates but still struggling to recover from the recent recession. General fund revenues, despite coming in above estimate were still down over $330 million from their peak in FY 2008.

Each year, the revenue estimating group creates an estimate of revenue that is used to set the limit of appropriations by the legislature. FY 2011 general fund revenues came in $114 over estimate. It was the first year since FY 2007 that revenue did not come in under estimate.

When compared with the previous fiscal year, FY 2011 general fund revenues were $129 million higher than FY 2010, and they are still well below pre-recession levels. The figure below shows the state’s general fund estimates compared with actual collections from FY 2007 to FY 2011.

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Mississippi General Fund Revenues, Actual and Estimate FY 2007 to FY 2011

The reduction in general fund revenue from its peak in FY 2008 to FY 2012 of $330 million has resulted in repeated cuts to vital public services, like education and health care, with more cuts to many areas in store for FY 2012. The affect of the cuts is even greater considering the increase in the costs of providing these services over the last five years as well.

The cuts only approach to dealing with the decline in state revenue has threatened the public structures that are the foundation of our economy. New revenue is necessary to maintain these structures, which are vital to the state’s recovery.

Source:

Mississippi Department of Revenue Monthly Report of Department of Revenue Transfers