State General Fund Revenue Expected to Remain Level for FY 2012; Total Budget Hole Still Looms

December 2nd, 2010

In November, the Revenue Estimating Group released its revised Fiscal Year (FY) 2011 general fund estimate along with its first general fund estimate for FY 2012. The Revenue Estimating Group provides the estimate on which the Governor and the Joint Legislative Budget Committee base their budget recommendations for the upcoming fiscal year.

The revised FY 2011 general fund estimate is $46 million over the estimate used to create current year appropriations. The general fund estimate for FY 2012 is expected to come in $57 million above FY 2011 revenue. The slight uptick in estimated revenue from FY 2011 to FY 2012 represents a 1% increase. Figure 1 shows the difference between estimated general fund revenue from FY 2011 and FY 2012 by major source.

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Figure 1: Mississippi General Fund Revenue Estimates for FY 2011 and FY 2012 by Major Source

While general fund revenues are beginning to show some growth after declines during the recession, the slight growth will not be enough to keep up with remaining high levels of need, increases in costs and the end of federal stimulus funds.

For more information about the end of stimulus funding and for a balanced approach to addressing the expiration of the American Recovery and Reinvestment Act, click here.

Source:

Revenue Estimating Group, November 2010