Appropriators hammer out FY 2027 state budget as regular session nears end

• Senate Appropriations chairman Briggs Hopson said there is a “general agreement” between House and Senate conferees on many of the bills. It remains to be seen what comes of education funding, teacher pay raises, PERS reforms and Medicaid spending.

Mississippi appropriators are hammering out the state budget as the 2026 regular legislative session nears its end.

The Fiscal Year 2027 estimated state budget is nearly $7.4 billion, up slightly from $7.3 billion in FY 2026.

The Mississippi House of Representatives and state Senate both have versions of appropriations bills to fund the state’s numerous financial obligations across the various agencies.  Conference reports must be filed by 8 p.m. Saturday.

State Senator Briggs Hopson (R), chairman of the Senate Appropriations Committee, said the sides are close on many of those bills.

In an interview with Magnolia Tribune on Thursday, the chairman said there is a “general agreement” between conferees on many of the remaining bills. However, as Hopson said, “The devil is in the details… I think it’s going good.”

Hopson added that, unlike last year when the regular session ended before a state budget was fully adopted, Mississippi’s FY 2027 budget should be completed before Sunday, April 5. He said “we’re on the right path” to end the session as planned.

Financial outlays that could cause tension between House and Senate conferees are education funding, particularly as it concerns teacher pay raises, PERS revisions, and Medicaid. Both chambers have proposed their version of a teacher pay raise bill along with possible changes to the new Tier 5 in PERS. As for Medicaid, Hopson said the federal program does not allow states to negotiate prices, which leaves the states guessing the costs. He said the Legislature does not have control over health care costs and increases in insurance premiums paid by the state.

Education is often a hot potato in the Legislature. This year, combined appropriations bills came in at more than $5 billion for education. Monies for the state general education program totaled $2.1 billion, while the Mississippi Student Funding Formula proposal was $3.2 billion. This does include federal and special funds. These figures are $43.5 million above the Legislative Budget Office’s estimates for the general education funding and nearly $193 million for the Mississippi Student Funding Formula.

Hopson also said there may be funding for more local projects, as they tend to come out of the Capital Expense Fund. Elected officials have stressed that local projects are the lifeblood of communities.

If all goes according to plan, the FY 2027 state budget bills could be finalized and adopted by lawmakers by midweek.