JACKSON - Lawmakers wrapped up the 2004 Legislature after completing a $3.7 billion spending plan that left deep cuts in many agency budgets, including K-12 education.
Senate Appropriations Chairman Jack Gordon, D-Okolona, said despite limited dollars, there would be no job losses.
"We have sufficiently funded state government. There will be no one to lose their jobs with the action we have taken. All the services of the people will be delivered," Gordon said.
House Appropriations Chairman Johnny Stringer, D-Montrose, said a pool of money was created by borrowing money from several special fund agencies, including $133 million from the Mississippi Department of Transportation.
Gordon said other funding sources included the state's 2 percent set aside of $72 million; $19 million from the Oil and Gas Severance Tax and $30 million from the delayed repayment of special fund money borrowed last year.
Another $111 million was taken from the state tobacco trust fund to pay for mental health, Medicaid and Department of Human Services programs, said Rep. Cecil Brown, D-Jackson.
Lawmakers said the final public education bill was the best compromise the chambers could reach.
"We're looking at the outcome of the elections last fall. It's not the fault of this House," said Rep. Tommy Reynolds, D-Charleston. "If it was not for this House … the school districts would be flat broke and busted."
Public education officials say some school districts will increase local taxes, decrease services and dip into cash reserves to make ends meet.
The K-12 education funding bill is $45 million less than what was appropriated for fiscal year 2004 and $79 million less than what the agency requested, said Judy Rhodes, director of accountability for the Department of Education.
Lawmakers didn't fully fund the Mississippi Adequate Education Program, an equity-funding plan aimed at giving all school districts the money they need to meet midlevel accreditation standards. In addition, school districts will have to absorb part of the teacher pay raises and state employees health insurance, Rhodes said.
She said smaller districts would be the hardest hit based on the MAEP formula. For example, Covington County will get $255,575 less in MAEP funds and the district will have to pay more than $1 million for raises and health insurance.
Rep. John Mayo, D-Clarksdale, challenged lawmakers to take a pay cut to cover the K-12 shortfall.
"When I shook hands with a teacher and I told that teacher that I was going to support education, I didn't mean that I was going to support it if there was money," Mayo said.
Lawmakers said the state will save about $92 million because of a change they've made in the Division of Medicaid. About 65,000 disabled and low-income elderly people will be dropped from the program. Most will move to Medicare, where the federal government will pay all expenses.
Gordon said 76 DHS positions would be transferred to Medicaid because of the change in eligibility requirements. He said a total of 334 new employees will be hired at the agency that provides health care for the state's needy.
"We might have a deficit in DHS next year of a couple of million dollars, but it won't be as bad as it was this year at $12 million," Gordon said.
Sen. Hob Bryan, D-Amory, said it didn't make sense to hire more employees if Medicaid was trying to cut costs.
"I thought we were concerned about the growth of government," Bryan said. "Aren't they going to throw thousands of people off Medicaid?"
Lawmakers also provided $12.8 million to fund half of the beds at the state's mental health crisis centers.
"We have not underfunded anything knowingly," Gordon said.
Lawmakers headed home after midnight today after spending four months at the Capitol.
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