Through the first two months of the current fiscal year that began July 1, state tax collections for the general fund are $32.4 million, or 5.9%, below estimates. If revenue continues to miss estimates at the current rate, Mississippi will have a shortfall of some $200 million. However, Governor Barbour believes the shortfall could be as much as $275-300 million. Therefore, Governor Barbour has ordered $172 million in budget cuts of which $158 million will come from Education—K-12, Community College, and Higher Education. The cuts amount to 5% below the legislative appropriations. Exempted from the cuts are funds for the Ayers Settlement, Chickasaw Cession Fund, student financial aid, and board certified teachers’ salary supplements. In addition the Division of Medicaid is exempt from any cuts.
Governor Barbour Issues Budget Cuts—NBC Funds Exempted