Reeves to Legislature: “No new taxes, no new debt”
Says ‘revenue outlook will probably get worse before it gets better’

(Jackson, Mississippi) – State Treasurer Tate Reeves today briefed lawmakers on the state’s fiscal outlook during these challenging economic times, primarily focusing on the state’s $3.4 billion bonded indebtedness and meager revenue projections.

“I want to thank lawmakers for keeping a tight rein on our debt and only authorizing bonds for job creation projects,” said Reeves. “Prudent debt management over the last five years means we are no longer constrained by our constitutional debt limit or our capacity to issue new debt in the market,” said Reeves. “ The only constraint in issuing new debt is the Legislature’s willingness to pay back our creditors.”

If $200 million in new debt is issued, the debt service would cost the fiscal year 2010 budget approximately $30 million.

“That’s $30 million that we can’t spend on education or public safety,” said Reeves. “Every dollar we spend on debt service is a dollar we can’t spend on the vital services that state government provides.”

Reeves explained that by avoiding any new debt and keeping taxes low, the burden will not fall on the backs of hard working Mississippi families.  “We must continue to deliver services to those most in need – our elderly and our children – while not further burdening the taxpayers with any tax increases.  The worst thing the Legislature could do in times of economic uncertainty is ask Mississippi families to send more of their hard earned money to Jackson,” he added. “If we have to make a decision to tighten state government’s belt or ask individuals already struggling to tighten their belt and send more money to Jackson, we should choose the side of Mississippi families every time.” 

Reeves concluded that given today’s economic climate, “our revenue outlook may get worse before it gets better.”