State Agencies Cope With Budget Cuts

Mississippi does not have enough tax revenue to meet budgeted expectations this year, and Governor Haley Barbour says that means budget cuts.

The governor says he has no choice and warns that future cuts are likely. Barbour is cutting almost $172 million dollars from the current fiscal budget. For the first two months of this fiscal year, tax collections were down almost 14 percent compared to last year. The governor says if tax revenues continue at this level, the state will be in the hole more than $800 million dollars.

The Department of Agriculture and Commerce is one of the agencies being forced to tighten its belt. It must cut 5 percent from its $9.5 million general fund.

"This wasn't something totally, unexpected," said Deputy Commissioner Rickey Gray.

Gray says his department has already taken cost cutting measures, like having all inspectors work ten hour, four day work weeks. He says the program has cut gasoline usage by 17 percent and increased productivity by 20 percent.

"This agency drives vehicles 2.8 million miles a year, and if we can extend this out to a full year, we should be able to reduce our travel mileage by half a million," he said.

These inspectors visit grocery stores and gas stations to make sure they're up to code. Gray is also hoping a new e-commerce system, where people can apply online for licenses, will cut back on mailing costs.

In other cost cutting measures, Gray says the department isn't filling vacant positions and they've combined divisions and reduced travel.

Public schools across the state will be hardest hit by the governor's budget cuts.

Dr. John Jordan, the interim superintendent for the Department of Education, is anticipating losing $100 million in funding. He says individual school districts will decide which programs to scale back and where they want to reduce spending.

"Tomorrow morning, 500,000 kids will show up at our schools expecting a highly qualified teacher in the classroom, and you cut a hundred million dollars from that, it will only mean a loss of services," he said.

Barbour says even with these new cuts, education funding is still $20 million higher than last year.