Mississippi’s “record-breaking $1 billion in interest income” a cumulative total generated over 6 years

• The clarification came as Magnolia Tribune sought a breakdown of the interest income between special funds and the state’s general fund.

The State Treasurer’s office on Tuesday clarified that Mississippi’s “record-breaking $1 billion in interest income in 2025,” as shared in a release Monday, was in fact a cumulative total over Treasurer David McRae’s tenure “up to 2025, not in 2025 alone.”

McRae has been the State Treasurer since 2020, having first been elected in 2019 and again in 2023.

The clarification came as Magnolia Tribune sought a breakdown of the interest income between special funds and the state’s general fund.

Special funds are any fund that earns interest but is not redirected to the general fund as established by the Legislature, which include hundreds of accounts owned by all state agencies. 

According to the State Treasurer’s office Tuesday morning, Mississippi generated $50.5 million in interest between special and general funds in the 2020 calendar year, with $32.2 million coming from special funds and $18.3 million from the general fund.

By the 2025 calendar year, the interest income jumped to $409.4 million, with $223.1 million generated from special funds and $186.3 from the general fund.

Here is a breakdown of the preceding six years of interest earned on state funds:

Monday’s announcement stated that in the five years before Tate Reeves became Governor and McRae became Treasurer, Mississippi averaged $39 million annually in investment earnings.

“By applying conservative, results-driven financial management, we’ve generated a record-breaking $1 billion in interest income for the state on money that would have otherwise sat idle,” Treasurer McRae said Tuesday. “That’s not just an impressive number on a spreadsheet. It’s real money flowing back into Mississippi’s general fund to support schools, improve infrastructure, and help keep our taxes low.”

Mississippi’s Fiscal System

The Legislative Budget Office classifies the state’s fiscal operations into General Fund and Special Fund agencies.

As outlined by the LBO, a “General Fund agency” is any department, institution, board, or commission of the State of Mississippi that is supported in whole or in part by appropriations from the General Fund. A “Special Fund agency” is any agency, department, institution, board, or commission of the State of Mississippi which receives no appropriation from the General Fund, but which is supported entirely from Special Fund sources or otherwise.

In addition, there are State Support Special Funds that include earmarked or diverted funds such as BP Settlement Funds, Capital Expense Funds, Coronavirus Fiscal Recovery Funds, Education Enhancement Funds, Gulf Coast Restoration Funds, Health Care Expendable Funds, and Tobacco Control Funds, which are appropriated. Other earmarked or diverted funds can be expended without additional legislative appropriations. Other earmarked and diverted funds are provided directly to entities like municipalities and counties.

LBO noted in the Fiscal Year 2026 report that the state General Fund represents 24.93% of the total state budget, as the Joint Legislative Budget Committee recommended for FY 2026.

The General Fund budget is more variable and flexible, LBO noted. It typically funds increased costs, new programs, and expanded operations. All money expended from this source must be appropriated by the Legislature before it becomes available for expenditure by General Fund agencies.

The Legislature must appropriate funds for all state agencies, including General and Special Funds.