AP and staff reports

Friday, February 02, 2001

The Natchez Democrat

JACKSON – Gov. Ronnie Musgrove, responding to a continued

downturn in Mississippi tax collections, has ordered budget cuts

at universities, junior colleges and public schools.

Tax collections for January were $26 million short of projections,

legislative leaders said Friday.

Sen. Jack Gordon, D-Okolona, the Senate appropriations chairman,

said if the trend continues for the year, revenue could fall $140

million short of what was appropriated for the budget year that

ends June 30.

”We had anticipated a 3.9 percent growth,” Gordon said. ”We’re

down to about a 2.4 percent rate of growth.”

On Friday, Musgrove ordered 5 percent reductions in agencies

he spared from cuts last fall, including the colleges, junior

colleges and public safety. He ordered 3 percent reductions in

spending for state Department of Education programs, including

the public schools.

”Because the final revenue estimates used in last year’s budgeting

process were so far off the mark, we have been forced to reach

into education budgets,” Musgrove said in a statement. ”This

will not stop the progress we have made in providing better educational

opportunity for the people of Mississippi.”

Pamela Smith, associate higher education commissioner, said

universities’ cuts will total about $27.8 million. Department

of Education officials said the cuts would total about $39 million,

while junior colleges are expected to lose about $7.5 million.

Natchez-Adams Superintendent Dr. Carl Davis said he is still

waiting to see what this cut will mean to the Natchez-Adams School

District. The Department of Education’s Office of Financial Accountability

said Friday that the 3 percent reduction is considered a &uot;reservation.&uot;

A portion could be restored later if revenues improve. &uot;Things

are still not finalized,&uot; Davis said. &uot;They don’t know

yet.&uot;

Depending on what measures the Legislature takes to restore

deficits in education, the Natchez-Adams district could lose from

$410,666 to $554,645 under Musgrove’s 3 percent reduction. &uot;We’re

financially better off than most districts,&uot; said Davis,

adding that the district could dig into its reserve district maintenance

fund for at least the first year.

&uot;But we can’t do that but once and live to tell the story,&uot;

Davis said.

Many other districts in the state would go bankrupt under the

cuts and that is against the law, Davis said.