The Legislature will have more than $1.5 billion in extra General Fund money to spend next year, according to a report in Y’all Politics. That’s a big pot of extra money considering the total General Fund budget for the current fiscal year was $6.3 billion.
In the coming weeks legislators on the joint Legislative Budget Committee will gather to work on the budget plan for the 2023 legislative session. Actually, they will come to hear what Speaker of the House Philip Gunn and Lt. Gov. Delbert Hosemann, the actual deciders, want them to do. Gunn rotated on as chairman of the committee this year.
If things go as usual, not much of the extra money will find its way into the initial budget plan. This approach would give Gunn and Hosemann the most flexibility for controlling appropriations during the session.
No doubt the beginning revenue estimate guiding appropriations for next year will take into account inflation. State agencies, universities, community colleges, schools and other entities that get General Fund money will be pushing for increases to cover their escalating costs.
The extra money is so-called “one-time” money. In other words, the excess may not be recurring so it should not be spent on recurring costs, unless legislative leaders decide otherwise as they have in the past. A short two-year trend indicates much of the increase may last, but phased in tax cuts will dampen that some. Also much of the extra money resulted from income taxes generated by massive stimulus dollars that have now gone away.
It will be illuminating to see how the budget committee manages discussions about extra money utilization. Besides ever present needs to better fund education, Medicaid, and road and bridge repairs, here are some possible uses:
Other states experiencing revenue bumps sent cash rebates to taxpayers. Georgia gave single taxpayers $250, married couples $500.
Last week State Auditor Shad White said he favored a state earned income tax credit to benefit low income workers. Gov. Phil Bryant proposed a version of this in 2014 but the Legislature failed to approve it.
Money is needed quickly for the state to comply with the federal court order to improve mental health services. People jailed an average of 25 days waiting for a hospital bed is “a clearly unacceptable pattern,” wrote court appointed monitor Michael Hogan.
Patients will have to travel to Memphis, Mobile, or Augusta, GA when Mississippi’s only burn center, the JMS Burn and Reconstruction Center at Merit Health Central in south Jackson, closes Oct. 14th.
Jackson wants money to help pay for fixes to its water system not covered by federal disaster relief or federal infrastructure money.
The University of Mississippi Medical Center will likely take over operation of the failing Greenwood Leflore Hospital but suffers its own financial issues from its dispute with Blue Cross Blue Shield.
My bet is the most significant use of the extra money will be to accelerate income tax cuts, even though that is not an appropriate use of one-time money.
“Help others, and you will be helped” – Proverbs 11:25.
Crawford is a syndicated columnist from Jackson.
31 comments:
Maybe—refund the healthcare tobacco trust fund that these incompetent morons on both sides of the isle let lapse that was billions of dollars and would be generating hundreds of millions of dollars in annual revenue off interest alone now?
What a joke. We run our state like how poor live on credit cards.
That is the makings of lots of palm greasing, right?
'An income tax credit for low income workers' sounds like a giant red-flag to me. If we listen to the pundits on talk radio, 60% of the population pays no income tax. Assuming that to be accurate (and if I have it right), do 'low income' Mississippi workers even OWE any tax against which a 'credit' would be balanced? No. Then, in that case, I suppose (as with the unearned, earned income credit) that credit would be refunded to those who did not earn it in the first place. An example of pissing away money.
Writing a $500 check to taxpayers makes no more sense since it would be blown to the wind immediately. Could I enjoy blowing $500? Sure. Do I need a $500 check? No.
Here's my idea and suggestion. Split off Parks from Wildlife, Fisheries and Parks, put a (non political), well experienced woman (who doesn't own a gun safe and a skinnin' rack) in charge of the new agency and fund the revitalization of our parks with the surplus money. Figure out ways for parks to generate money or be self sustaining.
Parks are a dismal embarrassment in our state, and they've been ignored and run (into the ground) for too long by the wildlife agency. If they're to be of benefit to our citizens and as tourist stops, we have got to get serious about them.
Roll back the "temporary" 1% increase in state sales tax from the early 1990s. Remember that lie?
One time money. Take over Jackson one time and don't give it back. Problem solved.
How about some technical assistance for Jackson’s Water Sewer Business Administration?
What to do with the money?
Build a high tech, inner city, video editing, game and computer animation vocational center. Try to get sponsorship from Intel/AMD/Nvidia/Google/Facebook, and hire experts in Blender and Black Magic Studio to teach technology skills to underprivileged youths. These are ways that they can be creative and become independently wealthy. It may seem like a pipe dream. But this is something that young people would really want to learn.
This could take off if it is both free and separate from the requirements to enter a university.
My ideas.
1. Clean up the rest stops on the interstates. They are gawd awful and the only impression a lot of folks get of our state.
2. As another poster stated, turn our parks around and make them money makers.
3. Buy every Sheriffs Office in the state a van, trailer, trash bags and yellow vests. Fund a guard to take a crew of trustees out and pick up roadside trash.
10:17 is spot on! MS Republican party has run the State for years now! Big pile of money doesn't change people, it just shows who they truly are!
Build plastic recycling plant in prison, a potential statewide benefit even if it only breaks even.
Pipedream, but please move the poor zoo to Le Fleurs
Roads and bridges.
Pay off debt and stop issuing debt. Would be great to become a debt free state.
They will probably do like they always do, split it up between the politicians.
Nearly every penny will go to Brett and Nancy types who are connected to the right people. The state will see zero benefit from the money.
Build a volleyball stadiums at State, Ole Miss, JSU, the Valley, Alcorn, and MUW.
We must have parity.
Let's Fund some Road & Bridge projects & Improve State Parks & Entrance Centers, we can do better than what I see-
With that kind of money there could be some impressive indoor volleyball stadiums built around the state, and some fine hunting lodges.
Now is the time to invest in Timber futures!
Shore up PERS !!!!!!
With the way the economy is forecast to decline, some should be saved for future needs.
Dove fields.
@8:35
Nope! State employees deserve a haircut! Spending 25-30 years getting paid to sit around doing nothing all day shouldn’t be rewarded with more pay to sit around and do nothing!
@9:01 What state employees are you referencing? Sit around all day and do nothing for 30 years. Is that hyperbole are you truly stupid?
8:36 - Not a bad idea, but knuckleheads like Kingfish would scream and holler that you've taken away his reason to scream and holler.
1. Eliminate state income tax and replace it with a small sales tax increase. This money can help float us through any transition in tax models.
2. Expand rehab and mental health capacity. These people need to be off the street.
3. Improve water, roads, and bridges across the state.
4. Take over Jackson (either directly or indirectly by requiring any city with 100,000 or more people to operate under a city manager model while also expanding the Capital District).
@9:01
what happened? Did a state employee tell you NO about something?
@10:40 AM
You sound like a butthurt state employee posting comments on JJ at 10:40 AM.
Why don’t you go do something instead of wasting my tax dollars!
10:40am,
Only a state employee would get that defensive at this time of day, when they should be working!
11:19 and 11:26
Unless you are retired, like me, shouldn't you be working instead of wasting your employer's money and causing the prices your employer charges to increase due to your laziness and being unproductive?
Never, ever use one-time funding for an ongoing expense. So, forget about starting programs, prison programs of any kind.
Pay off debt and stop issuing debt. Would be great to become a debt free state.
This is actually a great idea. I committed to a debt free lifestyle years ago, after discovering I would actually spend $425,000 for my $115,000 starter home over the course of the 30 year loan. It is amazing how much money is spent (wasted!) paying just the interest on a debt, whether you’re a private consumer or a government agency.
Paying off debt saves a ton in interest payments, frees up incoming revenue for other uses, and makes it cheaper if you ever have to use debt again.
That said, the most ethical thing to do with this money is refund it to the taxpayers who overpaid. Overpayments belong to those who were overcharged… not others. Government will never spend my money as wisely as I will.
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