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01/09/03
MISSISSIPPI
Revenue
Collections Stagnant, Experts Tell Legislature
m
STEVEN A. McCALEB
103 ALVERADO DRIVE
LONG BEACH, MISSISSIPPI 39560
PHONE & FAX: (228)-868-8428
State fiscal experts
told lawmakers Thursday that Mississippi's
economy is still stagnant, though there may be
signs of improvement. Then, again, maybe not.
The uncertainty of
revenue collections has lawmakers struggling to
juggle the needs of education, social services
and corrections.
Gov. Ronnie Musgrove
called on legislators to make education the
priority for the session. A group of educators
did the same, saying only by fully funding K-12,
the junior colleges and universities could the
state expect to see more jobs and a better
trained work force.
State Superintendent
of Education Henry Johnson said educators are
not telling lawmakers how to do their jobs, but
only saying when the time came for setting
priorities education should lead the list.
Legislative budget
writers have proposed a $3.5 billion state
budget for fiscal 2004 with no increases in
agency funding over the present levels. That
budget reflects only a $1.2 million increase in
general fund money between fiscal years 2003 and
2004. Fiscal year 2004 begins July 1, 2003.
The Legislature has
promised to pay for the third year of the
five-year teachers salary increase package at a
cost of $74 million; a full year of raises for
senior and junior colleges, $10.3 million; and a
full year of higher pay for state employees,
$12.2 million.
Johnson said the
public schools alone need $180 million more that
the legislative budget writers included. The
junior colleges want $58 million more and the
universities, about $100 million more.
Much of those funds
were in spending cuts Musgrove ordered or
shortages in appropriations by the Legislature.
At a fiscal briefing, the experts lawmakers rely
on for advice said the economy is moving - a
little - but no great improvement is expected.
"There might be
a slight growth in the revenue projections,''
said Tax Commission chairman Ed Buelow. "As
I have said we'll probably make some
(projections), we'll miss some. It's going to be
kind of a hit-and-miss thing.''
Musgrove has cut
state spending by $22 million through December,
with six months remaining in the fiscal year.
State revenue fell $57 million below original
estimates, though Mississippi has collected more
money for the first six months of fiscal 2003
than it did during the same period last fiscal
year.
Buelow and state
economist Phil Pepper said revenue from the
holiday season may show a welcome upward trend.
"While our
economy is weak, our revenues are growing about
at the rate expected,'' Pepper said.
"I think
December will be a lot better than we
expected,'' Buelow said. "Now whether that
will continue through the rest of the year or
not, I don't know.''
Rep. Charlie Capps,
D-Cleveland, the House Appropriations chairman,
said the uncertainty plays havoc with trying
pass a budget.
"I am really
weary of being short of our estimate. The
Legislature follows the estimating committee.
We're looking bad and y'all are looking bad,''
Capps said.
The Tax Commission,
Pepper's office, the state treasurer, the state
fiscal officer and the Legislative Budget Office
prepare the economic forecast on which the
budget is built.
(Copyright 2003 by The Associated Press. All
Rights Reserved.)
STEVEN A. McCALEB
COMMENTARY
MY OPINION
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