Meridian Star

Local News

July 10, 2012

Snowden: State’s finances improving

MERIDIAN —     Revenues for the state are up, but they are still not where they need to be. That's the message State Rep. Greg Snowden (R) of Meridian had for members of the Council of Governments on Monday.

    "It's modestly good news as far as our revenues go," Snowden said. "Mississippi's revenues are almost six percent from 2012 over 2011 so we've had some revenue growth."

    On the down side, he said, the increased revenues are needed because the state's economy has still not recovered from the nationwide downturn that began in 2008.

    "Things are picking up. We are slowly but surely improving revenue-wise, but we are still going to have challenging budgets for the next several years," Snowden said.

    According to a report from the Joint Legislative Budget Committee, on which Snowden serves, year-to-date collections through the end of June are nearly $270 million, which is almost six percent more than was expected. Sales tax collections are nearly $38 million, which is about  two percent more than expected. Individual income tax collections are $100 million, which is about seven percent higher than expected and corporate income taxes are nearly $74 million, which is about 17 percent more than anticipated.

    Snowden said a major variable in the state's budget over the coming years will be the effect of the Patient Protection and Affordable Care Act. Among other mandates, the health care act directed states to provide Medicare to people living up to 133 percent of the poverty level. In Mississippi, Snowden said, that would affect a lot of people. However, the June ruling of the U.S. Supreme Court removed that requirement from the states.

    "To what extent is that going to be implemented? How is that going to impact state budgetary decisions?" Snowden said. "The Supreme Court said we do not have to automatically expand Medicaid. The states can determine whether it's in their best interest overall to do that and that will give us some flexibility. That also means that a lot of the Obamacare decisions are now going to be made at state capitals, not in Washington. It's a pretty big aspect, I think, of the Supreme Court's decision."

    It's too soon to tell which way the state will go, he said.

    "I have already seen Gov. Bryant and Lt. Gov. Reeves express reservations that we can afford it and frankly, I have reservations myself knowing how much of an investment it would take over say, 10 years, and looking at where our revenues have been and where they're going," Snowden said. "It could just about soak up all the growth in a 10-year period, plus some. At the same time we have to be concerned about funding education and public safety, and all sorts of other things."

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