State Policymakers Prepare for Budget Debates for FY 2014: Recommend to Underfund Key Services

December 19th, 2012

In preparation for the legislative session that will start in a couple of weeks, the Governor’s Office and the Joint Legislative Budget Committee have submitted their budget recommendations for FY 2014. Each office is required by law to submit a recommendation. While both inform the budget debate, the Joint Legislative Budget Recommendation is used as the starting point for appropriation discussions.

The table below shows both the Governor’s and the Joint Legislative Budget Committee’s recommendation for state support funding levels for FY 2014 compared with FY 2013 levels. State support funds include general funds and a number of special funds that may be used across multiple agencies.

FY 2014 State Support Budget Recommendations for Selected Categories Compared to FY 2013 Budget

The Governor’s Budget recommends using almost $300 million more in special funds than the Joint Legislative Budget Committee for the FY 2014 budget. However, neither budget provides adequate funding levels for the key services that have been cut year after year since the beginning of the recent recession. The effects of the repeated budget cuts are amplified by the fact that costs have increased for providing services, and because the need for services has increased due to the state’s economic conditions.

For example, both budgets recommend level funding for the Mississippi Adequate Education Program. In the last five years the state has cumulatively underfunded MAEP by almost $1 billion. Because MAEP increases every year to take into account increases in the costs of providing an adequate education, “level” funding would continue to underfund Mississippi’s schools.

Both budgets recommend cuts state Mental Health funding. This is a critical area that is already strained to meet the needs of some of the state’s most vulnerable citizens.

The budget recommendations above reflect the state’s still mostly stagnant revenue growth since the end of the recent recession. The state has continually responded to these conditions by using a cuts only approach. A balanced approach that includes increased revenue – especially among those who can afford to pay a little bit more – is required to improve the state’s economic conditions and quality of life.

Stay tuned for a deeper look at how these budget recommendations compare to other recent budgets.