Mississippi House Bill HB1316

Mississippi 2022 Regular Session

• Introduced: 1/17/22
• Refer: 1/17/22
• Failed: 2/1/22

Caption

State revenue; when actual revenue exceeds the estimate, the surplus amount will be used to reduce the state debt.

Impact

The bill establishes a special fund named the 'Surplus Revenue Debt Reduction Fund', which will collect the surplus revenues to be used for paying down state debt, including maturing bonds and associated interests. This fund will ensure that any leftover cash from the general budget that is unencumbered at the close of the fiscal year is not absorbed back into the state’s general fund but rather earmarked for debt repayment, thereby enhancing the financial health of the state.

Summary

House Bill 1316 aims to provide mechanisms for addressing surplus revenues in the Mississippi state budget. Specifically, it states that in any fiscal year where actual general fund revenue exceeds the official revenue estimate, the excess amount—after accounting for inflation—will be allocated to reduce the state's debt. This initiative is designed to ensure that any financial surplus is utilized effectively and helps curb the state's liability, thus contributing to long-term fiscal responsibility.

Contention

The potential points of contention regarding HB 1316 could include debates over the impact of such a surplus allocation on other budgetary needs. Critics might argue that obligating surplus funds for debt reduction could limit the state's ability to invest in immediate public services or emergency funds, especially in light of potential fluctuations in state revenue. Additionally, there could be concerns regarding how the rate of inflation will be applied and whether this approach adequately reflects the state’s fiscal realities.