MS fiscal year comes to an end

The state of Mississippi ended the fiscal year on June 30th with an estimated $50 to $60 Million in the bank. However, Governor Barbour says the money will not be used to restore cuts he had to make during Fiscal Year 2010. “These funds will be crucial in preparing the budget for FY 2012 and spending for future years, which I expect to be as financially difficult as we saw in FY 10 and FY 09,” Barbour said. “While preparing for FY 11 was a difficult process because of declining revenue, FY 12 will be even more challenging as we will lose hundreds of millions of dollars in federal stimulus funds. The money from the close of the current year can be used to help balance the budget in the difficult years to come, as we cope with the budget cliff created by the loss of federal funds and weather the effects of the global recession.” State revenue collections in June—the final month of FY 10—were down $54 Million, or 8.85 percent. That marks the 21st month out of the previous 22 in which revenue collections failed to meet estimates.  On an annual basis in FY 2010, the state general fund took in 8.28 percent or $405.4 Million less than was originally budgeted. During the 2010 year, Governor Barbour cut a total of $466 Million from the General Fund and non-exempt Special Fund state agencies.

– The Clay Firm

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