Large chunk of rainy day, trust funds going to Miss. budget

JACKSON, Miss. (AP) – Mississippi could deplete a big portion of its financial reserves during the budget year that begins July 1.

Legislative leaders agreed Wednesday on a preliminary estimate of how much the state might spend.

The $5.4 billion budget estimate includes nearly $88 million from the state’s rainy day fund and $56.2 million from a health care trust fund. That’s about half the balance for each of those two funds.

Even as they continue to draw on financial reserves, budget writers say they’re still likely to cut funding for many state services because revenue remains anemic as the economy slowly recovers.