There’s a lot of bad budget news today:
House and Senate leaders, trying to put together a budget, were hit Wednesday with disturbing news for the state.
First is that Gov. Haley Barbour’s Division of Medicaid says it has a $34 million deficit – even though there are only two weeks left in the fiscal year. Second is the announcement that the Transportation Commission says it is about to terminate all road construction projects.
The Transportation Commission reported it would terminate all construction contracts unless a budget is approved before midnight June 30.
But don’t worry. Gov. Haley Barbour is on top of things. Probably the Eiffel Tower, but he’s on top of it…
In the same article, however, you can see that Attorney General Jim Hood is preparing to try and save as many state jobs as possible if the governor does not allow for a compromise:
Rep. Cecil Brown, D-Jackson, said Attorney General Jim Hood has told him that he would go to court to try to keep vital state services, such as prisons, operating in the event a budget is not passed. But Brown said there is probably no way to keep road construction on schedule if an agreement is not reached.
If road construction is halted, “you are talking about thousands of jobs in the local sector. It would affect every community. You’re talking about construction projects throughout the state.”
And does anyone else find it odd that while the governor is globe trotting that one of the largest agencies under his control announces that they all of a sudden have a $34 million budget hole, with only two weeks left in the fiscal year?
To further complicate issues, Barbour’s office informed budget negotiators that its Division of Medicaid faces a $34 million deficit with only two weeks to go in the fiscal year.
“It is very frustrating,” said Lt. Gov. Phil Bryant. “I wish we had gotten that information earlier. It is an example of how difficult this process is. You think you have solved many of the problems and then you learn you have a $34 million shortfall and you have to re-adjust again.”
Brown said he hopes Barbour, who has been on an economic development trip to Paris after a trip to New York, can shed light on some of the issues when he returns today.
Seems odd to us…


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