“Just like all previous Executive Directors of Department of Finance and Administration, we do plan on following the opinions of Attorney General,” Laura Jackson, DFA Executive Director, told Mississippi Today. After Kevin Upchurch’s retirement, Jackson was appointed head of DFA. Her department is responsible for the complete state budget, including cutting checks and cash transfers to agencies. Since April’s adoption of a new law called the Budget Transparency and Simplification Act, confusion has erupted about state spending. The law saw legislators decide to transfer $187 million in fees and assessments from special funds of some agencies into the general fund. Inter-agency transfers were also abolished, as an agency could not charge another for rent or Internet or technology services. Hood was consulted by a number of agency heads to determine whether the Legislature could transfer the funds to the general fund. Most prominently, Lt. Governor. Tate Reeves (R-Florence) has stated that it is the Legislature, and not the agency heads, who have the power to determine how the funds are spent. Hood stated that $79.4million of the $187 million in special fund sweeps cannot legally be taken from agencies under the Mississippi Constitution. He also wrote eight opinions and had “several informal conversations” with agency heads. Hood’s office stated that any transfer of funds made without authorization would be considered a misappropriation under the Mississippi Code. According to Hood’s opinions, any agency head who transfers funds or spends them without prior authorization could be held responsible for the action. Jackson’s decision to follow Hood’s opinion resolves the weeks-long dispute between Hood, Reeves and Reeves who championed this law during this session. Jackson’s decision leaves $79.4million in the budget for the current fiscal year. This amount will need to be made up somewhere else if state revenues exceed projections. Jackson stated that she met with Reeves, R-Clinton’s House Speaker Philip Gunn about the new law. She also said they “are committed to working together” and maintaining open communication. The $79.4 million hole will have to be filled elsewhere unless state revenues exceed current projections. The law was signed on May 6. On May 6, Gov. Phil Bryant signed the law. Agency heads began to plan their budgets. Many departmental leaders were shocked by the passing of the law and publicly criticised Reeves, lawmakers and others, calling it “short-sighted” and “crippling”. Reeves spoke to Mississippi Today in June, saying that there had been some who went to the media to cry and those who tried to figure out a solution. The law’s impact on the numbers also affected the Legislative Budget Office which is responsible for preparing the state budget. It released the final budget several weeks later than normal. Gunn, Reeves, and Bryant all stated that the new law created unforeseen problems that could be solved when the Legislature meets in Jackson in January 2017. Jackson stated that lawmakers could resolve some issues with the new law “if they so wish.” This figure is small relative to the $5.8 billion general budget for fiscal year 2017. This amount can be fixed by tweaking numbers over the course of a fiscal calendar year or if there are higher-than-expected revenue months. The budget could have a gap of up to $135 million if you add in the $56 million accounting error that was made when it was written. Hood shared his views and the $79m total was discussed in public. Reeves, who is a Republican, called Hood’s math “questionable” while blaming political maneuvering for Hood’s actions. Reeves was the previous state Treasurer for eight years. He has made a few quips over the last week, including: “I don’t take budget advice form the attorney general.” I don’t even get legal advice from him,” Reeves spokeswoman Laura Hipp stated last week. Even Republicans have criticised or questioned the law as agency heads consider how to spend their budgets. Lynn Fitch, State Treasurer of Nebraska, ran with Hood’s numbers two weeks ago in her Neshoba county Fair speech. She stated that the state has “$135,000,000 in debt.” Delbert Hosemann, Secretary of State, has been critical of this law after the state lost $18 million in special funding that was swept into the new general fund. The law’s intent has been also criticised by Mike Chaney, the insurance commissioner. Chaney stated that he was not against special funds being put into the general fund. Chaney stated that he is opposed to taking money meant for a specific purpose and then using it for any other purpose. Chaney stated that inter-agency transfers were lost and that he can’t smoke alarms or inspect elevators. “I’ve been around for a while, and I’ve seen both sides’ damage.” It will take us 10 years just to repair the damage done.” Jackson’s decision not to follow the Attorney General’s opinions for the time being should resolve the matter until January when the Legislature meets in Jackson. Jackson stated that Jackson is currently meeting with agencies included in SB2362 to evaluate each special fund to ensure that everyone is in agreement on the actions DFA will take in order to comply with the bill’s language. Jackson said that the meetings had been beneficial for all parties. Support this work by making a regular donation today to celebrate our Spring Member Drive. This will allow us to continue important work such as this story. Our reporters give a human face to policy’s impact on everyday Mississippians by listening more closely and understanding their communities. 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