The move is projected to save the state nearly $3 million in interest immediately and roughly $9 million long term.
During the 2022 Mississippi Legislative session, lawmakers adopted a budget for Fiscal Year 2023 at just under $6.3 billion. The Legislature, however, did not issue a traditional bond bill, saving the state around $3 million in interest immediately and roughly $9 million long term.
On Monday, State Treasurer David McRae thanked the Mississippi Legislature and Governor Tate Reeves for delivering the largest tax cut in state history and declining to pass an annual bond bill.
“Their decision to forego an annual bond bill will keep around $300 million off the taxpayers’ credit card, while the historic tax cut will leave a half-billion dollars in the pockets of hardworking Mississippians,” Treasurer McRae said. “Actions like this help tremendously as I continue to fight to squeeze more out of every dollar spent by protecting and boosting the state’s credit rating.”
At the end of the session, State Senator Briggs Hopson, Chairman of Senate Appropriations, told Y’all Politics that lawmakers were able to take care of the state’s needs within the state budget instead of taking on new debt.
“We didn’t create any debt for the state. We took care of projects that have typically been financed or created by taking on debt, but this year we took no debt on for the state,” said
Senate Appropriations Chair @briggs_hopson says the final FY 2023 state budget is just under $6.3 billion. No additional debt was added this year and significant investments were made in education and infrastructure. #msleg pic.twitter.com/Gs9tv8FAi8
— Yall Politics (@MSyallpolitics) April 5, 2022
Lieutenant Governor Delbert Hosemann said that instead of borrowing money to fund more projects, they are paying off some of the state’s debt.
“The Mississippi Legislature is not doing bonds this year,” Hosemann said. “We are not incurring any debt. In fact, over the next two years, we will write off approximately over half a billion dollars in debt in Mississippi making our financial statement very strong for this year and for every year in the future.”
Hosemann explained that when and if the state has to borrow any money, Mississippi will have the most favorable rate because its finances are in order.