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home : news : news September 03, 2010


12/10/2008 6:00:00 PM
Legislators eye state's rainy day fund
By DEBBIE BURT MYERS
Managing Editor

How much of Mississippi's rainy day fund will be needed to shore up next year's budget will be among the first challenges facing lawmakers when they return to the capital in January.

Area legislatures addressed budget issues during the Mississippi Economic Development Council's regional legislative forum held here at the historic train depot recently.

Gov. Haley R. Barbour has proposed a two-tiered cigarette tax increase in a budget he describes as prudent, conservative and balanced.

Barbour's plan, outlined last month, reduces funding by 2 percent to some state agencies but would fully fund the basic formula for public schools.

Barbour proposes a 24-cents-per-pack increase on the more popular brands of cigarettes and a 43-cents-per-pack increase on cheaper brands. The current tax is 18 cents a pack - among the lowest in the nation.

The governor also suggests using $84 million from the rainy day fund to make up the budget.

Rep. Greg Snowden, R-Meridian, called the rainy day fund the key to state entire fiscal situation.

"There's about $362 million in there now," Snowden said during the legislative forum. "It's statutorily full."

The legislature paid a price over the past two or three years for not funding some things so that the rainy day fund could reach its current level, he said.

"That's very important because now we see ourselves going into a period of time where we may have, two, three maybe four tough budget years," Snowden said, noting that some lawmakers would be willing to spend the entire fund tomorrow on something.

"That's a one-time sort of deal and that is just not prudent," he said of the spending.

Snowden said the rainy day fund would be a hot topic among lawmakers in regards to how much to spend and how much to set aside for other years.

"Next year might be just as bad or worse and the following year just as bad or worse," he said.

While everyone agrees with the expression that "it's raining" in Mississippi, Snowden said the "clouds haven't broken yet" and it might still be raining next year and the next.

Rep. Scott Bounds, D-Philadelphia, agreed, saying the state is facing one of the most difficult economic times it has faced in a long time.

"We are facing a tough session this time," Bounds said. "There's going to be a fight on how we distribute the money."

Legislators are going to have to put good policy ahead of bad politics when they convene in January, he said.

He cited such priorities as economic development, education, healthcare, transportation and infrastructure not only on the county level but the state level as well.

Sen. Giles Ward, R-Louisville, said he was candidly pleased with the governor's proposed budget.

"I think he has done some things that have shocked The Clarion-Ledger," Ward said. "They have been saying for years that he wasn't going to get into certain areas that he clearly has done."

Ward agreed with his colleagues about the rainy day fund.

"If we are not in rainy days in the state of Mississippi, I don't know where we are going to get an umbrella big enough," he said.

Ward praised those legislators who had "the prudence and foresight" to set up the rainy day fund.

"We are going to see the absolute wisdom of that as we go through these difficult times," Ward said.

He, along with others legislators, said it was important for all to remember that what's good for one county or one district is good for all of those in the state.

"We may not be in the most pleasant time but we can get through this and come out a lot stronger," Ward said. "That's when we build our muscles, when we are fighting in bad times."

Snowden said that legislators, particularly those in east Mississippi, have an appreciation for the fact that what's good for Clarke County is good for Leake; what's good for Jasper is good for Kemper; and what's good for Lauderdale is good for Neshoba.



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