Recent Updates

Extension of Key State Fiscal Relief Measure Vital to Moving Mississippi Towards Economic Recovery

Over $95 million for the Education of Mississippi's Children and Workforce Hangs in the Balance

When Congress resumes this week, the United States Senate will pick up work on a bill recently passed by the U.S. House of Representatives that includes a number of items to stimulate job growth and to support families experiencing job loss.  Noticeably absent from the House Bill is a six month extension of the temporary increase in federal matching funds for state Medicaid (enhanced FMAP) costs made available through the American Recovery and Reinvestment Act. 

Press Release

FMAP Extension Vital to Moving Mississippi Towards Recovery (6/10 pdf)  

Balanced Approach Needed to Address Long Term Deficits when Economy Sufficiently Recovers

Temporary Current Deficits Create Demand to Blunt Effects of Downturn

In partnership with the Foundation for the Mid-South and America Speaks, the Mississippi Economic Policy Center co-hosted a national discussion on the federal budget June 26th.  As discussions on budget issues begin, several key points serve as important background:

• Long-term deficits are unsustainable and pose significant challenges to the nation’s economy;
  Current deficits are necessary and create demand to provide economic relief during downturns;
  
• Actions to address long term deficits through spending cuts and tax increases should only be taken once the nation’s economy has recovered sufficiently to handle them;
  
• Long-term deficit reduction actions should take into account people’s ability to pay and not make low-income families worse off;
  
• Long-term deficit reduction actions must be balanced implementing cost savings in discretionary spending, a slow down in the rise of health care costs and revenue increases.
  
  Read the Full Release          
  See the WLBT coverage of the event

Working Smarter: Investing in Mississippi's Most Valuable Resource

Despite working hard, thousands of Mississippi's working families are falling short. By embracing proven policies and creative partnerships, Mississippi can use existing resources to build economic prosperity.

In light of cost increases and slow wage growth, preserving investments in and enhancing the state's workforce training system represents one of the most effective avenues to improve economic opportunities for Mississippi's working families - especially those that are low-income.

As one looks beyond the 2010 legislative session, three policy actions offer Mississippi the opportunity to increase family wages, workforce productivity and global competitiveness. The actions include:

• Preserving investments in Adult Basic Education
• Continuing to develop training systems that connect trainees to in demand careers
• Pursuing entrepreneurial training partnerships

Read more

Mississippians Facing Worst Job Loss in 30-Year Recession History

County Level Data Available

Since the start of the 2007 Recession Mississippi has lost over 72,000 jobs.  A new brief released by the Mississippi Economic Policy Center (MEPC) examines the link between the state’s staggering job loss numbers and the need for Unemployment Insurance Compensation Reform. With an increasing number of Mississippians out of work and looking for employment the need for unemployment insurance has drastically increased.

Unemployment Insurance not only stabilizes working families, it also provides critical economic activity in Mississippi’s communities.

• Magnitude of Job Loss Supports Unemployment Insurance Reform (4/10 pdf)
  

Balanced Approach that Includes Raising Revenues Needed to Navigate Budget Challenge

Like most states across the country, Mississippi is experiencing difficulty generating revenue to support critical state services such as K-12 and higher education, public safety and agriculture.  For Mississippi to be competative when prosperity returns, a balanced approach budgeting, one that includes raising revenues, is needed.  The following briefs highlight the state's revenue shortfalls and options for raising revenue.

• Governor Barbour’s Revised Budget Recommendation Proposes More Cuts (4/10 pdf)
  
• FY 2010 Revenue Numbers Prompt Fifth Round of Budget Cuts (4/10 pdf)
• Revenue Estimates for FY 2010 and FY 2011 Project Further Declines (3/10 pdf)
  
• FY 2010 Budget Cuts Restored with Special Funds; More Revenue Still Needed (3/10 pdf)
• Medicaid Change Saves Mississippi $36.7 Million (2/10 pdf)
• Lottery In Mississippi: A Gamble for State Budget and Working Families (2/10 pdf)
• Fourth Round of Budget Cuts Highlights Need for Balanced Approach (2/10 pdf)
  
• Revenue Options for Mississippi's Fiscal Crisis (Updated 2/10 pdf)
• Nonprofit Tax Exemptions and Estimated Revenue Impact (2/10 pdf)
  
• Legislative Budget Recommendation - Actual (12/09 pdf)
• Who Pays?  Overview of who pays state and local taxes in MS (11/09 pdf)
• Executive Budget Recommendation - MEPC Summary (11/09 pdf)
  • Executive Budget Recommendation - Actual (11/09 pdf)
• Revenue Estimate Summary / Options for Raising Revenue (11/09 pdf)
  • Mississippi Revenue Estimate (11/09 pdf)
• First Quarter Revenue Report (10/09 pdf)

A Closer Look: Mississippi's Unemployment Insurance Trust Fund and the Workforce Enhancement Training (WET) Fund

The Unemployment Insurance (UI) program is a federal-state partnership designed to replace the lost earnings of eligible workers who become unemployed through no fault of their own.  UI benefits are funded through the Unemployment Insurance Tax which is paid by employers.  A portion of the tax is returned to employers through a rate reduction (.3%) and then an additional contribution of .3% is collected and used to fund worker training administered by Mississippi's community colleges, provided the UI Trust Fund remains above three (3) solvency targets. As a result of the recession, the UI Trust Fund balance has fallen below one of the three (3) solvency targets. 

This memo provides background information on the UI Trust Fund and the Workforce Enhancement Training Fund as well as a comparison between the existing law and the proposed changes to keep this workforce training program in place.

• UI Trust Fund and WET Fund Overview (1/10 pdf)

Report Finds One in Three Mississippi Households Lack Adequate Income to Meet their Basic Needs

With basic living costs rising faster than incomes, more and more of Mississippi's families are facing economic hardships as they struggle to cover basic needs such as food, shelter, health care, and child care.  By comparing household incomes to bare-bones budgets, this report finds that 32% or nearly one in three Mississippi households does not earn enough money to cover their basic living expenses.

For more information, click on the links below.

• Listen to MEPC Director, Ed Sivak on Mississippi Edition (12/17/09)
• Overlooked and Undercounted Executive Summary (pdf 12/09)
• Overlooked and Undercounted Full Report (pdf 12/09)

Map Released on Check Casher Concentration in Jackson, MS

Using data provided by the Mississippi Department of Banking and Consumer Finance, MEPC created a map to illustrate the locations of check cashers within the city limits of Jackson.  The map shows high concentrations of check cashing businesses in the most economically distressed parts of the city.  To view the map click here.