REEVES GIVES FISCAL BRIEFING
Treasurer Reeves urges legislature to take a cautious approach to the state budget

Jackson, Miss. (January 11, 2007) -Today State Treasurer Tate Reeves spoke to a group of legislators at the annual legislative fiscal briefing and highlighted three key issues regarding the fiscal year. Reeves urged the Legislature to take a cautious approach when considering the state budget. In addition to addressing the state budget process, the Treasurer took up the subject of repaying the Health Care Trust Fund and advocated continued vigilance towards the state’s debt portfolio.

Reeves cautioned the Legislature not to be overly optimistic regarding the revenues in 2008.

“We should always be fiscally responsible when addressing the budget process, but the next few years will require extraordinary care and attention with regard to precise revenue expectations,” Treasurer Tate Reeves said. “In the aftermath of Hurricane Katrina, we have seen a tremendous amount of growth in revenues due in large part to reconstruction efforts on the Coast. I anticipate the pace of growth will taper off to a more normal rate as the state approaches full recovery. In fact, the last four months we have already seen a slowing in the growth rate in tax receipts.”

Reeves also recommended repaying the 240 million loan from the Health Care Trust Fund that was appropriated in 2004. The loan is currently slated to begin receiving installment payments in FY 2008 and continuing to 2015.

“ If the Legislature had not appropriated nearly $1 billion from the HCTF over the last ten years, the earnings on the principal of the fund would have been over $150 million this year,” Reeves said.

In today’s briefing, Reeves also highlighted the fact that the state’s debt picture has significantly improved and said he will continue efforts to be a watchdog for the taxpayers by working to lessen the debt burden on the state’s taxpayers.

“The good news is that Mississippi taxpayers have less debt today than they had three years ago. For the first time since the 80’s, the treasury has actually asked for less money for debt service than we did last year. This will free up more money in the ’08 budget for public education, public safety, and the other vital services that state government provides.”