The Mississippi Joint Legislative Budget Committee on Wednesday adopted a budget recommendation for the next budget year, giving lawmakers slightly less money to work with than in previous years.
At its December meeting at the Woolfolk Building in downtown Jackson, the committee, made up of state lawmakers, established a recommended general fund budget of $7.024 billion for the 2026 fiscal year, which begins in July 2025 and ends the following June 30.
The proposed budget is only about $16.7 million less than what was withdrawn from the general fund for the current budget year, and that figure excluded other forms of state financial support.
The committee also recommended saving about $2.74 billion in unallocated state money for the Rainday Fund, the Capital Expense Fund and setting aside the general fund, among other things.
“The committee recommends a conservative budget,” said House speaker and committee chairman Jason White, R-West. “The commission has rebuilt the budget using only recurring funds, strengthening the state’s reserves.”
Lt. Gov. Delbert Hosemann greets Rep. Bryant Clark, D-Pickens, before the Joint Legislative Budget Committee hearing begins on Sept. 26, 2024, at the Woolfolk State Office Building in Jackson. On Wednesday, the committee issued a state budget recommendation for September 26, 2024. approximately $7.6 billion.
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Last month, the commission voted to approve a revenue estimate for the budget year, which came to about $7.62 billion, about $30 million above what projected state revenues had been set for the current budget year, which ends June 30, 2025.
If reserves are included, the state Legislature will have about $7.474 billion to spend, even though the budget recommendation is only $7.024 billion.
During the meeting, Gov. Tate Reeves, a Republican, noted that the Legislature has decided not to spend about $600 million in revenue expected to come from this fiscal year and asked lawmakers to allocate that money use for tax cuts.
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As of November 30, the state has raised $3,015,170,010, slightly exceeding the budget expected to be raised by then.
After the meeting, Lt. Gov. Delbert Hosemann told the Clarion Ledger that a smaller operating budget and higher revenue estimate reflect the state’s fiscally conservative position and will help make a sound case for tax cuts. He said it shows state leaders want to run Mississippi more like a business.
“I think most companies try to keep cash on hand, right?” Hosemann said. “I obviously want to cut taxes on groceries, and there are other tax things that would eat up the cuts, that would eat into savings accounts, but our rainy day fund is full, and we’ve been very sensible about that. .”
Grant McLaughlin covers the legislature and state government for the Clarion Ledger. He can be reached at gmclaughlin@gannett.com or 972-571-2335.
This article originally appeared on Mississippi Clarion Ledger: MS Budget Committee recommends Legislature enact $7 billion budget next year
