Mississippi House Bill HB1119

Mississippi 2023 Regular Session

• Introduced: 1/16/23
• Refer: 1/16/23
• Failed: 1/31/23

Caption

State indebtness; certain amount of surplus general funds revenue shall be used each year to reduce.

Impact

The most significant impact of HB1119 is the creation of the Surplus Revenue Debt Reduction Fund, which will be utilized exclusively for paying off maturing bonds and interest obligations of the state. This fund will not only help in maintaining the state's creditworthiness but also in achieving long-term financial stability. The bill mandates that any remaining funds at the end of the fiscal year in this fund will not lapse into the general fund, ensuring continuous support for debt service requirements and potentially reducing future debt obligations.

Summary

House Bill 1119 proposes the establishment of a new section in the Mississippi Code to allocate surplus general fund revenues specifically for debt reduction. This bill dictates that in any fiscal year where the state's actual general fund revenue exceeds the official revenue estimate, $50 million of that surplus will be directed towards reducing the state's debt. It aims to ensure that any excess revenues are utilized effectively to manage and mitigate the state's financial obligations, thereby promoting greater fiscal responsibility.

Contention

Discussions around HB1119 may focus on its implications for future fiscal policies and budget allocations. While proponents of the bill laud its forward-thinking approach to debt management, critics may argue regarding the impact of such allocations on other critical budgetary areas, such as education or healthcare. Given that the bill ties spending to revenue conditions, there may be concerns regarding the predictability and reliability of its funding source, particularly in fluctuating economic climates.