MS guv won't accept rev estimates

Evey fall, the Mississippi Joint Legislative Budget Committee (JLBC) adopts a revenue estimate, typically proposed by a separate Revenue Estimating Group - made up of officials from the departments of Revenue, Finance and Administration, the Legislative Budget Office and the State Economist.

At its meeting Nov. 15 to decide the estimate for FY 2025, a disagreement arose between lawmakers and Gov. Tate Reeves regarding projections for the next fiscal year.

At the meeting, it was proposed that the JLBC decline the estimate produced by the Revenue Estimating Group (REG) and vote on a revenue estimate $113M below its recommendation ($7,523,800,000), which is the same as the original FY-24 estimate.

Gov. Reeves was caught off guard by the new figure. He questioned the basis for the downgrade and expressed concern it could impact the Legislature’s ability to deliver income tax cuts this coming session. 

Reeves contended that the JLBC could not approve the reduced figure without his approval. 

State Economist Corey Miller said the group's adjusted figures represents a decrease of seven-tenths of a percent over the actual FY-23 General Fund and an increase of 1.6%,  or $117,800,000, from the FY-24 estimate.

 Lt. Gov. Delbert Hosemann, chair of the JLBC, explained that lawmakers on the committee were leery to assume an additional $113M due to concerns that the economy would slow. 

“I’m not going to agree to the number as it’s currently written, because I don’t see any justification for doing so. If there was a reason to ... I’m willing and open to it,” Reeves said.

"But just to do it arbitrarily just to lower the number so as to minimize the likelihood of tax cuts in the session, in my opinion, the right approach, so I’m not going to agree to it.” (Magnolia Tribune 11/15/23) Joint Legislative Budget Committee, Governor in disagreement over FY 2025 budget estimate - Magnolia Tribune

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