Governor: Expect Another Round Of Budget Cuts

JACKSON, Miss. (AP) - Governor Haley Barbour says Medicaid or
public schools -- and possibly both -- will be among the state
programs losing money next week when he makes a second round of
state budget cuts.
Barbour cut about 2 percent from the $5 billion state budget in
November, but he chose not to take money then from Medicaid, a
government health insurance program for the needy. He also spared
the Mississippi Adequate Education Program, a complex formula that
provides most of the money for elementary and secondary schools.
The Republican governor says the second round of budget cuts is
unavoidable because a weak economy is eroding state revenues.
Tax collections in December were 9 1/2 percent short of
expectations. Many experts believe the economy will continue to
perform poorly for the rest of the fiscal year, which ends June 30.
The governor talked about the upcoming budget cuts during a
Mississippi Economic Council meeting in downtown Jackson.


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