Lean Budget Enacted for FY 2012
May 13th, 2011
Over the past week, MEPC has been profiling different characteristics of unemployment in Mississippi. A number of solutions offered – enhancing access to education and workforce development hinge on a strong budget.
A review of the upcoming state budget shows another lean year for state services. The total state support budget was nearly level with the Fiscal Year (FY) 2011 budget. The table below shows FY 2012 state support appropriations compared with FY 2011.
Click to enlarge
State Support Appropriations for Selected Budget Categories and Total Budget, FY 2011-2012
State support funding for K-12 Education will decrease by over $16 million (1 percent). State support funding for Colleges and Universities will remain level and will increase slightly for Mental Health and Social Welfare. State support Medicaid funding will decrease by 24 percent; however, the total Medicaid budget will increase due to an increase in federal funding for FY 2012.
While revenues are no longer dropping, they are increasing very slowly. The FY 2012 state support budget is hundreds of millions of dollars less than the levels seen in FY 2008. This effect of this decline is exacerbated by the increase in the cost of providing state services.
As MEPC has outlined in other blog posts, the current funding levels affect the quality of state services and ultimately threaten the state’s economic recovery. New revenue, including updating the income tax brackets, broadening the sales tax base, and closing corporate loopholes, is necessary to move the state forward though recovery and beyond.
Source:
MEPC Analysis of the 2011 Legislative Session Budget Summary.
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