Briggs Hopson (R-Vicksburg), Senate Appropriations Chairman cautioned that “We are far away from the finish line.” This is only the beginning. Last year, $7 billion was appropriated by the Legislature in state support funds to education, health care and law enforcement. These funds are funded from state general fund tax collections or other state funds. Both the Senate and House have approved budget plans totaling $6.6 billion. This week’s action is the first step in the 2022 session to develop a budget for the fiscal year that begins July 1. In the last days of the 2022 legislative session, the Senate and House leaders will negotiate the final product. Karl Oliver (R-Winona), House Appropriations Vice Chairman, stated, “Yes, I’m certain (spending) will increase in negotiations — that always happens.” The legislators have to deal with an unprecedented increase in state tax collection when preparing budgets. The state has collected $1.1 billion more in tax revenue than it had budgeted for, and the state is expected to continue this trend in the current fiscal year. These surpluses fuel discussions in both chambers about a tax cut. READ MORE: The income tax cut battle between Senate and House leaders. While the Senate’s recent action may be the “start line”, the proposals indicate that conservative leaders are still taking a conservative approach to developing a budget. Both proposals don’t address the funding gap in Mississippi Adequate Education Program (which provides basic operations for local school districts), but they do not address it. To fully fund MAEP (a funding formula that was established by the Legislature), it would require $360 million more money. Also, the budget does not consider expanding Medicaid. This is federally allowed to provide coverage for the most vulnerable. Philip Gunn, House Speaker, has stated that he will not support expanding Medicaid. The budget plans as they were originally presented to both chambers did not address rising inflation costs. Hopson acknowledged that inflation must be considered when planning for the future. Hopson stated, “It’s definitely a factor …(to] determine how far dollars go.” Oliver stated, “Everybody is aware of inflation — That’s a big subject of conversation right now.” He claimed that inflation is a major factor in proposed pay increases for Department of Public Safety law officer and other budget-related employees. Republicans and Democrats both expressed concern about the need for pay increases for state employees in a climate where salaries are increasing in the private sector to attract more workers. Hopson stated that safeguards have been put in place to ensure agency heads don’t exceed their authority to offer pay raises. “There seems to be a real concern that employees are being overpaid, and agencies trying to give their employees more,” stated Sen. Hob Bryan (D-Amory). “… It is easy to see how much a salary costs. This is a dollar amount. We have the exact amount. It is possible to deal with it. We don’t know the true cost of government’s top people, the super-competent. You incur many other costs when those people leave. This money is intended to ensure that all employees receive at least the minimum salary they are entitled under the new compensation system created by the state Personnel Board. Around 19,000 state employees in Mississippi who are subject to the guidelines of the state Personnel Board received an increase of up to 3.3% in January in order to bring their salaries in line the new SEC2 compensation plan. Hopson stated that the $25 million will be used to complete this realignment. Both the Senate and the House proposals have the largest new expenditures. This is for the funding of the teacher raise plans, which were passed earlier in the session. The Senate proposal has $170 million to fund its pay raise proposal. It also includes the promise of an additional $45 million in 2023. The House has $215 million to fund its plan. Separately, but in a related area, lawmakers are also working on how to spend $1.8 million of federal COVID-19 relief funds. These funds can be used for water and sewer improvement throughout the state, as well as other COVID-19-related items. The final decision about how to spend these funds, as well as the overall budget, will be made in the last days of the session which ends in April. To support this important work, you can make a regular donation to the Spring Member Drive today.