Mixed bag on MS finances

Despite failures that have the potential to cost the state $185 million, Mississippi has received positive results from its incentive programs designed to entice companies to locate in the state, according to a study by Auditor Stacey Pickering’s office. The results found that the Magnolia State had a return of $12 for each $1 of investments in five incentive programs operated by the Mississippi Development Authority. MDA’s 243 projects that date to 2010, and were awarded incentives through five programs: Mississippi Major Economic Impact Act, Industry Incentive Financing Revolving Fund, Mississippi ACE Fund, Rural Impact Fund Grant Program, and Existing Industry Productivity Loan Program. The audit cited 11 failed projects. In a separate report on finances, Mississippi’s revenue collections took a downturn in March. Revenue collections were $46.7M (10.4 percent below estimates). For FY 2018, which ends June 30, collections are 0.33 percent below official projections, according to the Legislative Budget Committee. Official estimates represent the amount appropriated by the Legislature. If collections fall far below estimates, cuts would have to be made or the governor would have to dip into reserve funds. At this point, neither scenario seems likely. (Source: Mississippi Business Journal 04/09/18)