Shortfall triggers Barbour’s decision; deeper cuts planned

The Clarion-Ledger, 1/8/9

Gov. Haley Barbour will announce deeper cuts to Mississippi’s budget next week to make up for lagging revenue, a spokesman said Wednesday, although it’s uncertain how much of a shortfall the state faces.

Corporate tax returns coming into the state could help shore up a current budget that is $65.2 million below estimates. But Dan Turner, a spokesman for Barbour, said he doesn’t expect the new revenue to prevent a second round of cuts that will be detailed in the coming days.

Total collections for December are $32.2 million below estimates, and Barbour has said he believes the months ahead will be worse.

“The only question is how deep will the cuts be,” Turner said. “I suspect it will be a fairly healthy cut” affecting all state agencies.