The estimate is over $1 billion more than the state’s adopted budget for FY 2023.
The Mississippi Joint Legislative Budget Committee (JLBC) has adopted the FY 2024 revenue estimate of $7,523,800,000, significantly higher than the FY 2023 Sine Die Revenue Estimate of $6,987,400,000.
READ MORE: Two months into FY, state revenue $113 million overestimate.
During the JLBC meeting, lawmakers heard from State Economist Cory Miller. Miller said the state has had its labor market stalled during calendar year 2022, which can indicate a recession, but does not believe the state is in a recession at this time.
Mississippi Governor Tate Reeves, who attended Wednesday’s meeting and agreed with revenue estimate, said the stalled labor force is not because of the lack of jobs but rather the inability or unwillingness for some to enter the labor market.
Governor Reeves added that the major increase in capital investment is primarily due to laws and policies that lawmakers have passed making the state more business friendly. Reeves commended lawmakers on the positive decisions they have made to encourage such capital investments that have resulted in state revenue increases.
The Governor also took the opportunity to urge lawmakers to send money back to the taxpayers.
“There’s an awful lot of opportunity there for us to cut government spending, to return more money to the taxpayers and I hope we’re in agreement that we’re going to work together over the next four to five months as the Legislature comes back into session to do exactly that,” Governor Reeves said.
Reeves has continued to advocate for the full elimination of the state income tax.
Following its adoption, Lieutenant Governor Delbert Hosemann spoke with Y’all Politics about the budget estimate number set for FY 2024.
“I am very pleased that Mississippi continues to grow,” Lt. Governor Hosemann said, noting that lawmakers funded back $20 million for MAEP and $1.4 million in homestead exceptions.
Hosemann said JLBC also added back in foster care for $12 million to increase the compensation for people who “take care of our children.”
“You saw some real positive things, I think, today and a positive outlook,” Hosemann said. “Obviously the state economist has predicted a recession, so we’re very cautious about spending the money, but today was a good day.”
Lt. Governor @DelbertHosemann commented on adopting the new FY2024 budget estimate. #msleg pic.twitter.com/9iw9aGvtlk
— Magnolia Tribune (@magnoliatribune) November 9, 2022
The JLBC will meet again on December 6th.
*** Contributions from Capitol Correspondent Sarah Ulmer ***