A major agreement between the House of Representatives and the Senate last week paved the way for finalizing the state’s FY 2010 budget and moving our attention to the plan for FY 2011.  Negotiators from the two chambers agreed on SB 2495 restoring $82 million to the current FY 2010 budget, with almost half going to K-12 public education. Gov. Haley Barbour has cut $458.5 million from what was nearly a $6 billion General Fund budget when fiscal year ‘FY 10 started. He made the cuts in reaction to slipping state revenues, which have been below previous estimates for 18 months.

             The compromise agreed upon would restore over $37.1 million to K-12 education, including $2 million for National Board Certified teachers, $4 million to mental health, $1.7 million to public safety and $16 million to the Department of Corrections. Another part of the deal includes Barbour adding an extra $4 million to community and junior colleges from his discretionary fund. Much of the budget restoration funds will come from the Health-Care Expendable Fund, and from smaller sources such as $14 million in Medicaid “clawback” funds. None will come from the so-called “Rainy Day Fund” which has $230 million on balance, the Health-Care Trust Fund ($220 million balance) and Katrina Fund ($128 million.)

             Our latest report on state tax collections shows that for February, revenue was $33 million less than projections. For the fiscal year thus far – July through February – we are $224.3 million below estimates.  Sales taxes are the major deficiency -- $105.1 million below projections, and individual income taxes are down $94 million. Tobacco and alcohol tax collections are $15 million off, and gaming is $8.7 million down. Corporate income taxes and insurance premium taxes are up slightly, but not enough to provide much of an offset.

Other bills passed last week included:

* House Bill 1456 will require any pathologist performing autopsies to be certified by the American Board of Pathology and deemed qualified by the Department of Public Safety.

* House Bill 1070 will allow the Department of Wildlife, Fisheries and Parks to issue a special hunting permit to children under the age of 18, who are suffering life threatening illnesses.

* House Bill 1047 will create a task force to seek solutions to teacher shortages.

* House Bill 113 seeks to have governmental agencies charge only actual costs for reproduction of public records requested by citizens. It also seeks to reduce from 14 working days to seven, the waiting period for such information.

* House Bill 1057 would create a Transit Task Force to study the statewide transportation system and infrastructure. The committee will look at current and future needs.

* House Bill 170 will give county Boards of Supervisors the authority to regulate strip clubs.

I continue to be very proud to serve as your state senator.  If I can ever be of assistance to you do not hesitate to call me at 228.270.0001 or email me at dbaria@senate.ms.gov.