State Revenue Estimates Slashed By $175 Million

JACKSON, Miss. (AP) – It’s been obvious for months that Mississippi tax revenues were lagging, and legislative leaders now acknowledge it.

With a day to go before lawmakers are supposed to agree on a $6 billion-plus budget for the year beginning July 1, House and Senate leaders on Friday cut the revenue forecast by $175 million.

That means lawmakers must either abandon their pledge to increase reserves to cushion against midyear budget cuts, or make even deeper cuts than previously forecast.

The forecast makes it harder to avoid cutting K-12 school funding, and could frustrate attempts to spend more on roads and bridges.

Tax collections have been lagging for two years, thanks to tax cuts and a barely growing state economy. Gov. Phil Bryant has already cut $150 million from the current year’s budget.