Budget writers in the Mississippi Legislature have set a revenue estimate of $7.6 billion for the year beginning July 1, a 1% decrease from the current year. This estimate is based on economic trends like employment rates and consumer spending patterns. Legislators are in a four-month session that ends in early May and will be deciding how much to allocate to various services like schools, prisons, and healthcare. Republican Lt. Gov. Delbert Hosemann stated that legislators will be cautious with spending, with no plans for income tax cuts this year.
Mississippi is in the process of reducing its personal income tax under a law signed by Republican Gov. Tate Reeves in 2022. Reeves aims to eliminate the tax by 2029, but Hosemann mentioned that there is no expected movement in that direction this year. State agencies submitted their budget requests months ago, and House Appropriations Committee Chairman John Read said that legislators usually do not grant agencies the full amount they request. Read mentioned that he will do his best to fulfill as many requests as possible by asking agencies to prioritize their needs.
The House Appropriations Committee Chairman, John Read, a Republican from Gautier, stated that he works with agencies to prioritize their needs when allocating budgets. While agencies rarely receive the full amount they request, Read aims to assist as many as possible. Meanwhile, Republican Lt. Gov. Delbert Hosemann shared that there are no plans for income tax cuts this year, despite Governor Tate Reeves’ goal of eliminating personal income tax by 2029. The revenue estimate of $7.6 billion for the upcoming year reflects a 1% decrease from the current year.
State agencies submitted budget requests months ago, with legislators typically not granting the full amount sought by agencies. House and Senate members are currently working to finalize the budget for the upcoming year, deciding on allocations for various services such as schools, prisons, and healthcare. Republican Lt. Gov. Delbert Hosemann emphasized the importance of prudent spending, indicating that there are no immediate plans for income tax reductions this year. The revenue estimate for the next fiscal year stands at $7.6 billion, representing a slight decrease from the current year’s budget.
