CONTACT: Pete Smith (601) 359-3150 or (601) 951-8510 or
Kathryn Stewart (601) 359-3150

Wednesday, January 28, 2004

Governor Releases Executive Budget and Administration Efficiency Plan

Jackson, MS – Governor Haley Barbour today released his executive budget and administration efficiency plan – “Operation: Streamline.”

The Governor generally accepted the FY 2005 Legislative Budget Report (LBR), but highlighted special increases and corresponding cost-saving measures.

Governor Barbour estimates Mississippi’s budget hole to be $709 million. Governor Barbour’s executive budget cuts that hole almost in half.

Governor Barbour proposed $113 million in increases over the LBR, including additional money for universities / community colleges, homestead exemption reimbursements to local governments, The Mississippi Development Authority, and The Mississippi Bureau of Narcotics.

(click here to download chart)

The Governor’s “Operation: Streamline” has a goal of $283 million in savings. This includes savings in Medicaid ($130 million), State Health Insurance ($54 million), Institutions of Higher Learning / Community Colleges ($26 million), Administration ($25 million), and Corrections ($34 million). One example of proposed savings in the plan is temporarily moving agencies from under the personnel board to help in streamlining the executive branch.

Governor Barbour said, “Our goal is to save $238 million in 2005. Our hope is that this will just be the beginning in what will be a smarter way to run state government. The business world has rapidly learned how to operate more efficiently. It is time for state government to do the same.”

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