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UPDATE: Miss. House votes to limit governor's budget cuts
by Emily Wagster Pettus/The Associated Press
2 years ago | 1145 views | 5 5 comments | 8 8 recommendations | email to a friend | print
JACKSON — Democratic leaders in the Mississippi House say they want to limit how much can be cut from the state budget, and they're trying to force Republican Gov. Haley Barbour to dip into financial reserves.

"We're just trying to soften the blow of the cuts that could be made," said Rep. Bo Eaton, D-Taylorsville.

The House passed a bill Tuesday saying Barbour could cut no more than $347 million from the nearly $6 billion budget for the fiscal year that ends June 30. Barbour says cuts of up to $437 million could be needed. He has already cut $226 million.

The House plan says Barbour would have to take $50 million from the state's $231 million rainy day fund, and use that money to pad agencies' budgets. The plan also says he'd have to spend $61 million in federal stimulus money.

That means Barbour could take only about $10 million out of the budget, beyond the cuts he has already made.

Under scenarios the governor presented Monday night during his State of the State speech, he could have to cut another $211 million. He said cuts need to be made soon because it's more difficult for agencies to lose money as the end of the fiscal year approaches.

Barbour's office did not immediately respond to the House plan Tuesday, but he has said repeatedly that he wants to limit the amount he takes from the rainy day fund because he believes it will have to last several years as the global economy recovers from a deep recession.

Mississippi's revenues have fallen short of expectations the past 16 months.

State law says the governor can't cut any program's budget by more than 5 percent until he has cut every program's budget by that amount. Barbour has passed the 5 percent mark this fiscal year, and he's asking lawmakers to give him flexibility to cut some agencies' spending by up to 10 percent and other agencies' budgets by smaller amounts.

The Republican-controlled Senate voted last week to give Barbour the flexibility he's seeking. The House, however, has balked at his request because leaders say deep cuts could hurt education.

Rep. Cecil Brown, D-Jackson, said the House is not trying to deplete the state's financial reserves but leaders believe it makes more sense to spend some of the rainy day fund than to reduce essential government services.

"I've heard him say 50 times, 'If you've got a better plan, show it to me,'" Brown said of Barbour. "This is a better plan."

Rep. Greg Snowden, R-Meridian, said Tuesday that lawmakers should make budget cuts while they're in session and not force the duty onto the governor.

"The Legislature has punted," Snowden said.

Republican Lt. Gov. Phil Bryant, who presides over the Senate, said he disagrees with the bill the House passed Tuesday. No bill can go to the governor until the House and Senate reconcile their differences.

Senators on Tuesday started working on a separate bill designed to make long-term changes to the state budget process. The proposal would require state agencies to more specifically outline their goals as they seek state funding.

Advocates said the change would make government more accountable. Skeptics said it could transfer too much power to one person by letting the governor transfer money from one agency to another in case of emergencies.

Some lawmakers said that under the current system, agency leaders routinely request budget increases but give too little information about whether their programs are effective. Other lawmakers said the current system works well because budget writers can quiz agency directors during annual hearings.
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sandlot1959
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January 19, 2010
Well in fact, Mississippi has spents hundreds of millions of stimulous money. Haley only wanted to refuse the money that was being alloted for unemployment compensation that would have required Mississippi to, henceforth, pay laid off part time workers just as it has been paying full time workers. There was much 'one time money' that would have required state policy change, such as with the unemployment compensation, that after the first year, would have had no funding source. I have no clue why ANYONE would not agree with Barbour on these issues...This 'one time money' was specifically targeted by the fed to require changes in state governments' policy in order to receive the funds. Its one thing to accept and use stimulous funds to help shore up certain areas but it is totally another issue when you're creating a new entitlement that will, after initial stimulous funding, have NO further method of funding in out years...Be fair to the guy...at least he hasn't let us get into the same shape as Arnold has in CA...or in many other states...

Further, the rainy day fund has been utilized but he is trying to make it last for the next 3 years of expected budget deficits...he's doing what needs to be done...you guys would be dogging him if he was not making cuts...

PS Be glad that Haley defeated Musgrove for re-election because if he hadn't, there would be NO rainy day fund because Ronnie did his best to spend it during his term...
MIKEOWEN
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January 19, 2010
There is more than not dipping into the rainy day fund on the counter here. Barbour is refusing to use stimilus money that has been allocated for Mississippi. In doing so he is invinting a crisis much worse than actually exist.

The above is beside the point. What Mississippians need to be asking is what are we getting for 6 billion dollars ? Not much. Our property tax's go to pay for education. We pay gas tax to build and maintain our roads. We pay 7 percent sales tax to ensure the local mayor is paid full time for a part time job. So if not to buy MDOT pick-ups I don't see exactly what Mississipians are getting for their dollar.
justamerican
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January 19, 2010
PS. WTFDUude, did you not see that he wants to ration the rainy day funds over the next two years. Pay check to pay check lifestyle gets you NO where.
justamerican
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January 19, 2010
How smart do you have to be to realize if you can't afford something, DON'T buy it!!!!

Giving the governor the authority to cut where cuts need to be made is better than spending the grocery money on cigarettes. Seems like the Democrats want to cut the cigarettes and groceries equally. In other words, they want to cut straight across the board and not cut the areas that are just money drains anyway.

Hey, how about some thought in the legislature.
WTFDude
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January 19, 2010
I understand the governor's reluctance to dip into the "Rainy Day Fund", but if this isn't a "Rainy Day" then what is?

In other words, what are the circumstances under which the reserves would be accessed?