Mississippi state budget and finances

In Mississippi, as in other states, lawmakers and public officials are elected in large part to manage the state's complex finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complicated and fluid, as they depend on anticipated revenues and planned expenditures, which may change over the course of a fiscal year. All citizens are affected by their state's budget and financial situation; if revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS

Between fiscal years 2014 and 2015, total government spending in Mississippi increased by approximately $2.1 billion—from $18.3 billion in fiscal year 2014 to an estimated $20.4 billion in 2015. This represents a 10.40-percent increase.[1][2][3]

In Mississippi in fiscal year 2014, 62.1 percent of total tax revenues came from sales taxes and gross receipts. Income taxes accounted for 29.0 percent of total state tax collections.

Education accounted for 35.2 percent of state expenditures in fiscal year 2015, while 24.6 percent went to Medicaid.

The Mississippi state budget and financial data presented here come from different years because the states and the federal government report and publish the information at different times.

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."^[4]
• Federal funds are "funds received directly from the federal government."^[4]
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Revenues

2014 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2014 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2013 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2013 population" and "Per capita collections" have not been abbreviated.^[5]

Compared to neighboring states, Mississippi had the second highest state tax collections per capita, at $2,530.

State tax collections by source ($ in thousands), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes	Total	2013 population	Per capita collections
Mississippi	$25,103	$4,704,955	$559,218	$2,193,646	$91,593	$7,574,515	2,993,443	$2,530
Alabama	$329,598	$4,812,674	$386,378	$3,612,991	$152,113	$9,293,754	4,846,411	$1,918
Arkansas	$1,077,377	$4,324,157	$368,622	$3,000,653	$165,972	$8,936,781	2,966,835	$3,012
Louisiana	$55,363	$5,115,636	$427,090	$3,234,892	$862,300	$9,695,281	4,648,990	$2,085
Tennessee	N/A	$8,758,085	$1,335,392	$1,416,190	$296,662	$11,806,329	6,547,779	$1,803
United States	$14,232,835	$411,414,175	$51,120,024	$357,104,785	$31,880,270	$865,752,089	318,907,401	$2,715
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

The table below lists 2014 tax collections by source as percentages of total collections. About 62.1 percent of Mississippi's total state tax collections came from sales and gross receipts.^[5]

State tax collections by source (as percentages), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes
Mississippi	0.3%	62.1%	7.4%	29.0%	1.2%
Alabama	3.5%	51.8%	4.2%	38.9%	1.6%
Arkansas	12.1%	48.4%	4.1%	33.6%	1.9%
Louisiana	0.6%	52.8%	4.4%	33.4%	8.9%
Tennessee	N/A	74.2%	11.3%	12.0%	2.5%
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2013 federal aid to the states accounted for roughly 30 percent of all state general revenues. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.5 billion in federal aid in 2013, accounting for about 43 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2013, or just 19 percent of the state's general revenues, the lowest percentage in the nation.^[6]

The table below notes what share of Mississippi’s general revenues came from the federal government in 2013. That year, Mississippi received approximately $7.5 billion in federal aid, 42.9 percent of the state's general revenues. Taking into consideration the state's 2013 population, this came out to about $2,511 in federal aid per capita. Figures from surrounding states are provided for additional context.^[7]

Federal aid to state budgets, 2013
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenues	Ranking (by % of general revenues)	Est. 2013 population	Aid per capita
Mississippi	$7,509,589	42.9%	1	2,991,207	$2,511
Alabama	$8,226,967	36.2%	9	4,833,722	$1,702
Arkansas	$5,689,390	32.9%	22	2,959,373	$1,922
Louisiana	$10,592,657	41.9%	2	4,625,470	$2,290
Tennessee	$10,819,977	39.5%	3	6,495,978	$1,666
Sources: United States Census Bureau, "State Government Finances: 2013," accessed April 4, 2016 United States Census Bureau, "State totals: Vintage 2013," accessed April 8, 2016 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2013.

Spending

Estimated 2015 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2015 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.^[2]

Mississippi's total estimated government spending in fiscal year 2015 was $20.4 billion, which was the lowest amount when compared to surrounding states.

Total estimated state spending, FY 2015 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
Mississippi	$11,481	$8,953	$20,434	2,992,333	$6,828.79
Alabama	$14,990	$9,556	$24,546	4,858,979	$5,051.68
Arkansas	$16,502	$7,131	$23,633	2,978,204	$7,935.32
Louisiana	$19,580	$10,149	$29,729	4,670,724	$6,364.97
Tennessee	$18,806	$13,156	$31,962	6,600,299	$4,842.51
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates.[8] Source: National Association of State Budget Officers, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016

Spending by function

See also: State spending by function as a percent of total expenditures

State spending in Mississippi can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2014 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.^[2]

In fiscal year 2014, Medicaid accounted for 24.6 percent of Mississippi's total expenditures.

State spending by function as a percent of total expenditures, FY 2014
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
Mississippi	16.3%	18.9%	5.5%	24.6%	2.0%	7.1%	25.5%
Alabama	20.5%	20.6%	0.2%	23.3%	2.4%	6.4%	26.6%
Arkansas	15.1%	15.6%	2.3%	22.1%	2.1%	6.1%	36.8%
Louisiana	18.9%	10.4%	0.5%	26.8%	3.0%	5.5%	34.9%
Tennessee	18.3%	14.2%	0.3%	30.6%	3.1%	5.7%	27.8%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[2]

Spending trends

Between 2010 and 2014, the share of the Mississippi state budget spent on public assistance increased from 0.2 percent in 2010 to 5.5 percent in 2014. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).^[2][9][10]

Spending by function from 2010 to 2014 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2014	16.3%	18.9%	5.5%	24.6%	2.0%	7.1%	25.5%
2013	16.4%	16.1%	5.9%	26.1%	2%	6.7%	26.7%
2012	16.9%	16.8%	5.8%	23.4%	1.8%	7.5%	27.7%
2011	14.8%	13.0%	4.6%	18.5%	1.5%	5.9%	41.7%
2010	17.1%	15.3%	0.2%	22.9%	1.8%	7.3%	35.4%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[2]

Current fiscal year budget

See also: Historical Mississippi budget and finance information

Fiscal year 2016

See budget bill: Budget bulletin for fiscal year 2016

Governor Phil Bryant announced his fiscal year 2016 budget proposal on November 17, 2014. This proposal recommended total state spending of about $6.18 billion. The governor also recommended $2.187 billion to be spent on public education, with about a $52 million increase in general spending, as well as new funding for reading and early learning programs. The budget proposed a number of new programs, including pay raises for teachers and state troopers, increased student financial aid, and additional funding for economic development.^[11]

Governor Bryant signed the state's fiscal year 2016 budget in April 2015. Included in this budget was increased spending for K-12 education and higher education. Total spending under this budget equaled about $5.74 billion.^[11]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Mississippi had a state debt of approximately $54.7 billion. Its state debt per capita was $18,321. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.^[12][13]

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
Mississippi	$54,686,815,000	$18,321	14
Alabama	$68,343,597,000	$14,173	26
Arkansas	$37,704,936,000	$12,785	33
Louisiana	$83,280,815,000	$18,097	15
Tennessee	$41,049,738,000	$6,358	50
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Taxpayer burden

TIA Methodology: To figure a state’s taxpayer burden or surplus, TIA looked at a state’s total reported assets minus capital assets and assets restricted by law (buildings, roads, land, etc.) to calculate “available assets,” which were then compared to the amount of money the state owes in bills, including retirement obligations such as pension plans and health care benefits for retirees. If the difference between available assets and total bills was positive, TIA called this a surplus; if it was negative, this was a burden. This amount was then divided by the number of individual tax returns with a positive tax liability, thus expressing the total state surplus or burden on a per-taxpayer basis.

According to a report released in September 2015 by the nonprofit Truth in Accounting (TIA), Mississippi ranked 20th worst in the country in “taxpayer burden.” Rather than using per capita state debt, TIA ranked states based on what it called a “taxpayer burden,” a term that reflects “the amount each taxpayer would have to send to their state’s treasury in order for the state to be debt-free.” On the other hand, states that had sufficient resources to pay their bills were said to have a “taxpayer surplus,” which represents the amount that each taxpayer would receive if the state were to disburse its excess funds.

Based on analysis of Mississippi’s Comprehensive Annual Financial Report from June 30, 2014 and actuarial reports for the state’s retirement plans, TIA concluded that $4.8 billion in promised retirement benefits were unfunded, but only $139.9 million of these liabilities were reported on Mississippi’s balance sheet. With all of the unfunded retirement benefits included in the total debt, the state had a shortfall of $6.6 billion, or a taxpayer burden of $9,200.^[14]

Public pensions

See also: Mississippi public pensions and Mississippi public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of Mississippi's state-administered pension plans decreased from 73 percent to 58 percent. The state paid 101 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $14.6 billion. This amounted to $4,983 in unfunded liabilities per capita.^[15][16]

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.^[17][18]

The table below lists the Standard and Poor's credit ratings for Mississippi and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.^[19]

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
Mississippi	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Alabama	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Arkansas	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Louisiana	AA	AA	AA	AA	AA-	AA-	A+	A	A	A	A+
Tennessee	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA	AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Economic indicators

See also: Economic indicators by state

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.^[20][21][22]

Mississippi’s median annual household income from 2011 to 2013 was $40,338, which was lower than any of its neighboring states. In 2013, the state had the largest percentage of residents that earned incomes below the federal poverty level. Its September 2014 unemployment rate was 7.7 percent, highest among neighboring states.^{[23][24][25][26]}

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)†
	Under 100%	100-199%	200-399%	400%+		Sept. 2013	Sept. 2014
Mississippi	23%	20%	29%	28%	$40,338	8.4%	7.7%	$105,163
Alabama	17%	22%	33%	28%	$43,330	6.4%	6.6%	$193,566
Arkansas	17%	26%	33%	24%	$40,877	7.7%	6.2%	$124,218
Louisiana	19%	22%	29%	29%	$40,844	6%	6%	$253,576
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † Median annual household income, 2011-2013. ‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

Budget process

State documents and agenciesBelow are links to official Mississippi budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office. Mississippi CAFR Mississippi budget agency

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:^[27][28]

1. Budget instruction guidelines are sent to state agencies in June of the year preceding the start of the new fiscal year.
2. State agencies submit their budget requests to the governor in August.
3. Agency and public hearings are held in September and October.
4. The governor submits his or her proposed budget to the state legislature in November (this deadline is extended to January for a newly-elected governor).
5. The legislature typically adopts a budget in March or April. The fiscal year begins July 1.

Mississippi is one of 44 states in which the governor has line item veto authority.^[28]

The governor is legally required to submit a balanced budget proposal. Likewise, the legislature is legally required to pass a balanced budget.^[28]

Agencies, offices, and committees

The following standing committees in the Mississippi Legislature deal with budget and finance matters:^[29][30]

1. Finance Committee, Mississippi State Senate
2. Ways and Means Committee, Mississippi House of Representatives
3. Appropriations Committee, Mississippi House of Representatives
4. Appropriations Committee, Mississippi State Senate

The Mississippi State Auditor is responsible for assessing state and local governmental entities to ensure that public funds are properly used. The state auditor is elected every four years in partisan elections.^[31]

Transparency

See also: "Following the Money" report, 2015

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in March 2015. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.^[32] According to the report, Mississippi received a grade of C+ and a numerical score of 79, indicating that Mississippi was "Middling" in terms of transparency regarding state spending.^[32]

Budget and finance ballot measures

Voting on state and local government budgets, spending, and finance
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
Local City budgets County budgets Spending limits School budgets

See also: Spending and finance on the ballot and List of Mississippi ballot measures

Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in Mississippi.

1. Mississippi State Budget, Amendment 4 (1968)

Budget and finance legislation

The following is a list of recent budget and finance bills that have been introduced in or passed by the Mississippi state legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

Recent news

The link below is to the most recent stories in a Google news search for the terms Mississippi budget. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles; they are included to provide readers with the most recent news articles on the subject. Click here to learn more about this section.

Contact information

Mississippi Office of Budget and Fund Management
501 North West Street, Suite 1301-E
Jackson, Mississippi 39201
Telephone: 601-359-3402

See also

• Historical Mississippi budget and finance information
• Tax policy in Mississippi
• Mississippi government sector lobbying
• Mississippi public pensions
• Governor of Mississippi
• Mississippi State Senate
• Mississippi House of Representatives
• Mississippi State Legislature

External links

• State Budget Solutions, Mississippi
• Mississippi Center for Public Policy
• Mississippi Forward
• State of Mississippi Management and Reporting System

Additional reading

• U.S. PIRG, "Report: Transparent & Accountable Budgets," April 8, 2014
• The New York Times, "Battles loom in many states over what to do with budget surpluses," February 3, 2014
• Center on Budget and Policy Priorities, "Policy Basics: The ABCs of State Budgets," February 7, 2013

Footnotes

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	v • e State of Mississippi Jackson (capital)
Ballot measures	List of Mississippi ballot measures | Local measures | School bond issues | Ballot measure laws | Initiative laws | History of I&R | Campaign Finance Requirements |
Government	Mississippi State Constitution | House of Representatives | Senate |
State executive officers	Governor | Lieutenant Governor | Attorney General | Secretary of State | Treasurer | State Auditor | Superintendent of Education | Commissioner of Insurance | Commissioner of Agriculture and Commerce | Executive Director of Environmental Quality | Executive Director of Employment Security | Chairman of Public Service Commission |
School boards	Mississippi Department of Education | Mississippi school districts |
Judiciary	Mississippi Supreme Court | Court of Appeals | Chancery Courts | Circuit Courts | County Courts | Justice Courts | Judicial selection in Mississippi |
Transparency Topics	Public Records Act | Transparency Legislation | Transparency Advocates | Transparency blogs | State budget | Taxpayer-funded lobbying associations |
Divisions	State | List of Counties | List of Cities | List of School Districts | Evaluation of county websites | Evaluation of city websites | Evaluation of school district websites |

This article is curated by the Public Policy Desk: Jerrick Adams • Sarah Groat • Taylor Kempema • Adam Vaughn Contact the desk