The Northeast Mississippi Daily Journal Editorial, 11/10/8
Mississippi, hardly alone among the states, is faced with some serious governmental budget-tightening in the coming months.
State government revenues for the first quarter of the 2009 fiscal year that began in July were down 2.3 percent, or $35 million, from official estimates used to formulate the budget. The worsening of the national economy and the effects being felt in Mississippi will no doubt further strain revenue collections as the fiscal year progresses.
Gov. Haley Barbour says he will announce budget cuts soon for state agencies. How much and which agencies isn’t yet known.
By state law, the governor must act on the budget when revenues fall below 2 percent of projections. In addition to cuts, he has the choice of using the state’s rainy day fund, or cash reserve, which currently contains $365 million. Barbour says he’s reluctant to do that now since the economy may be down for a long time and the fund may need to last several years.
Magnolia Tribune
