September 3, 2010
This week the Clarion-Ledger ran an article entitled “Young women without kids or husband outearn men in cities” ,which highlighted that across the nation, young, single women without children earn 8% more than their urban-dwelling, male counterparts. The article may have left some readers curious about trends in women’s and men’s wages in Mississippi.
The women of Mississippi have seen their wages increase relative to men’s over the last 3 decades. In 1979, the median wage of women in Mississippi was 64% of men’s wages. In 2009, the median wage of women in Mississippi was 82% of men’s wages, with a median hourly wage of $11.77 for women and $14.33 for men.* However, as seen below, the women of Mississippi still earn substantially less than men with similar levels of educational attainment.
Women In Mississippi Earn Less Than Men Across All Education Levels
The chart also reveals that regardless of gender, annual earnings increase as education increases. For Mississippi’s women, postsecondary education can lead to substantial earnings increases. Women with an Associate’s degree earn 43% more than those that graduate from high school, but do not go on to postsecondary education. Median wages for women with a Bachelor’s degree are 69% higher than the median high school wages.
Single mothers with children are more likely than any other family type to live on incomes below the Self-Sufficiency Standard. The median wage for women with an Associate’s Degree is above the Self-Sufficiency Standard for one adult in all of Mississippi’s counties, and is above the Self-Sufficiency Standard for one adult with a preschooler in 70 out of Mississippi’s 82 counties. Advancing women into postsecondary education and towards a degree is a key piece of ensuring that women in Mississippi, particularly single mothers, are on a path to economic security for themselves and their children.
Author: Sarah Welker, Policy Analyst
*Source: Economic Policy Institute analysis of Current Population Survey data
September 1, 2010
In the last five years, the state has endured some tough challenges, including Hurricane Katrina and the recent recession. The effect of those events on state revenue has been dramatic. After Hurricane Katrina, in addition to the federal aid provided to the state, state tax revenue increased due to recovery activities.
Affected residents bought new items to replace those lost in the storm and bought construction materials for repair and rebuilding. That added up to an increase in sales tax revenue. Accordingly, the state was able to make investments in services like education that it had not been able to make before. The Mississippi Adequate Education Program was fully funded in 2007, for the first time since its creation in 1997. However, the recent recession has eroded those gains. The figure below shows general fund revenue collections and estimates for the last fifteen years.
Mississippi General Fund Revenue Collections and Estimate 1996-2011
General Fund collections peaked in FY 2008 after Katrina and have since declined by $462 Million (9.6%). Tax reform is necessary to update the tax system so that the state can maintain vital investments in areas like education.
Note: The FY 2011 revenue amount is an estimate.
Source: State of Mississippi Budget FY 2011, State General Fund Revenue Estimate from the Revenue Estimating Group 2006-2011, Mississippi Department of Revenue Summary of Transfers June 2010
Author: Sara Miller, Senior Policy Analyst
August 26, 2010
Over the past week, a significant amount of media coverage has focused on the jobs outlook in Mississippi. From unemployment insurance extensions to the announcement of a large economic development project to private sector layoffs on the Mississippi Gulf Coast, the stories illustrate that creating and maintaining quality job opportunities is one of the bigger challenges facing the state.
In light of the coverage, we thought it would be illustrative to share with our readers a 10 year snapshot of job growth and job loss in Mississippi. The Chart below shows the rise and fall of jobs over the past decade. Statewide, we have 77,000 fewer jobs today than we did in January 2000.
Mississippi Job Numbers January 2000 – July 2010
The Recession of 2007 wiped out years of job recovery following the lead-up and aftermath of the Recession of 2001. Fewer jobs mean higher unemployment and lower personal income and sales tax collections. Lower tax collections affects funding for vital state services such as education and public safety.
For the state to be competitive when prosperity returns, it is important that Mississippi takes a balanced approach to building a budget in the upcoming year that includes raising revenues. As Mississippi seeks to develop job opportunities and a more competitive economy, it will also be important to make the necessary investments in our post secondary education system to prepare a workforce ready to compete for 21st century jobs in a global economy.
Source: JobWatch 2010. Economic Policy Institute. MEPC Analysis. Green Shaded areas indicate national recessions.
Authored by: Ed Sivak, MEPC Director and Sarah Welker, Policy Analyst
August 23, 2010
Sunday’s Clarion-Ledger article “More Time for Jobless” on unemployment insurance in Mississippi highlighted the importance of the UI program for the long-term unemployed. One of the biggest challenges facing the long-term unemployed in Mississippi is simply a lack of job opportunities. The chart below compares the magnitude and duration of job loss in Mississippi over the four most recent recessions. Thirty-one months from the start of the recession in 2007, the level of job loss continued to decline and showed no indication of moving towards pre-recession job levels.
Job loss in Mississippi During 2007 Recession Worse than Recent Recessions
On the left side of the chart an index has been created to make comparisons across different recessions.
- A value of 1.0 represents the number of jobs available when a recession began.
- A value of less than 1.0 indicates fewer jobs than at the start of the recession.
- A value of more than 1.0 indicates more jobs than at the start of the recession.
Since the recession began more than two and a half years ago, Mississippi has lost 77,900 jobs. For these Mississippians that struggle to find work, the unemployment insurance program plays a critical role in helping families get by while putting much needed money back into the economy.
Source: Economic Policy Institute JobWatch July 2010
Author: Sarah Welker, Policy Analyst
August 20, 2010
The Governor’s office announced Thursday that Mississippi would be applying for $98 million in Federal Funds from the recent educational stimulus package passed by Congress. The decision to accept these funds not only saves 2,000 jobs across the state, it supports the education of our children.
Initial concerns over the state’s ability to access the funds without having to find an additional $50 to $100 million from the budget turned out to be inaccurate. According to a statement released by the Governor’s office, federal officials have issued an assurance that Mississippi meets the requirements to receive the funding.
Pulling down these important federal resources while implementing a balanced approach helps keep Mississippi’s economic recovery on track and will position the state for prosperity when good times return.
August 18, 2010
One agency where state budget cuts may have finally cut too deep is the Mississippi Department of Mental Health. The Department of Mental Health has already undergone nearly $59 million in cuts from FY 2009 to FY 2011. The table below shows how the Department of Mental Health’s budget has changed in the last two years.
Department of Mental Health General Fund Appropriations 2009-2011
These cuts have already resulted in reduced services in many areas such as:
- Reduction of 200 beds at the state mental health hospital
- Closing of a dorm at the MS Adolescent Center in Brookhaven
- Closing of 24 supervised apartments at the Central MS Residential Center
- Closing of some early intervention programs
- Reduced grants to some non profits that provide services
Add to that the proposed closure of four primarily state-funded facilities and the future of those currently receiving services becomes bleak. In the absence of options, many patients currently served by the mental health system could become homeless or end up in the state’s corrections system.
Neither local law enforcement nor community-based mental healthcare systems are currently equipped to handle the volume of mental patients these closures may create.
Source: MEPC Analysis of data from the Enacted Budget 2010, Governor’s Office data 2009 and 2010, and the SB 3143 Conference Report
August 13, 2010
This week, there has been considerable discussion surrounding the $249 million in federal funding that Mississippi stands to gain for education and healthcare. One of the primary concerns centers on the claim that the state would have to spend additional funds for education at the expense of other vital services.
Further analysis of the language in the final bill suggests, however, there may be a way to access these funds without spending an additional $50 – $100 million from the state budget.
Regardless of the outcome of further investigation in the requirements to access the funds, policymakers should work together to implement the policy. The policy does not add to the deficit long term and supports teachers, communities and kids. Under no circumstances should any money be left on the table.
To learn more about the provisions and the benefits of the Education Jobs and Medicaid Assistance Act, check out the MEPC authored commentary in this Sunday’s edition of the Northeast Mississippi Daily Journal.
August 11, 2010
The recent state fiscal relief legislation passed by the U.S. Senate provides for nearly a quarter of a billion dollars for the state budget.
With teachers losing their jobs and class sizes increasing, pulling down these resources should be a top priority for the state. The worst thing we could do now is leave this money on the table
While questions remain about how to pull the funds down without moving money from other state services, Mississippi should explore all options, such as the use of reserves and new money made available by the legislation, to pull down these important federal resources while implementing a balanced approach that will position the state for prosperity when good times return.
Author: Ed Sivak, MEPC Director
August 6, 2010
Across Mississippi, students are returning to the classroom for the 2010-11 school year. Now more than ever, it is important that Mississippi’s young adults not only graduate from high school, but also go on to enroll in postsecondary education. Mississippians face a job market that increasingly requires postsecondary education to obtain jobs with wages that support their families.
According to the Mississippi State Plan for Workforce Development, 80% of jobs now require education beyond high school, and the demand for workers with advanced education continues to rise. The Department of Labor projects occupations for workers with an associate’s degree will grow by 19 percent from 2008 to 2018- a rate greater than any other educational grouping.
Connecting Mississippi’s adults to postsecondary certificates and degrees is not just important for workforce demands, it is important for household economic security as well. Households with no education beyond high school are more likely to have insufficient income than those with more education. Across race and gender, thousands of Mississippi’s households are headed by adults without any formal education beyond high school.
A total of 144,068 households headed by an adult without education beyond high school live on incomes below the Self-Sufficiency Standard. The largest number of these households are headed by African American women. But the figure below highlights there are over 25,000 households in each racial/gender grouping that live with incomes below the Standard.
Households Below Self-Sufficiency for Householders with no Education beyond High School by Gender and Race: Mississippi 2007
For Mississippi to prosper, it will need to continue to implement strategies to enhance the education and skills of the adult workforce. Frameworks like community college Career Pathways and Sector Strategies are models for ensuring that Mississippi connects working adults with postsecondary credentials that can result in career advancement and increased earnings. Mississippi’s Corridor Consortium provides a valuable example of how Sector Strategies and Career Pathways can combine to improve job opportunities for working adults and meet the needs of the region’s employers.
Source: Overlooked and Undercounted Struggling to Make Ends Meet in Mississippi
Author: Sarah Welker, Policy Analyst
*Total Households includes all races
August 5, 2010
Yesterday, a summit was hosted on health care reform in Mississippi. While a good bit of information was shared, a couple of key points were somewhat overlooked:
- First, health care reform is good for working Mississippians. Nearly 500,000 Mississippians were uninsured before the passage of the bill. Among the uninsured earning 133% of the federal poverty level (around $28,935 for a family of four), the rate of not having insurance is estimated to decrease by 54.9%.
- Second, Mississippi’s share of the cost is minimal. The chart below contrasts the state and federal costs from 2014-2019.
Additional Spending for Medicaid Expansion in MS to 133% of Poverty 2014-2019 (in millions)
- Third, many of the cost estimates discount the current costs of uncompensated care. Uncompensated care can occur through the use of emergency rooms among the uninsured or mental health services.
- Finally, the individual mandate is critical for the success of the program. Having younger and healthier people included in the program keeps costs down – just like it does in private plans.
One point on which we can all agree is that getting implementation of the program right is in the best interests of all Mississippians. To do so, we will need to take a balanced approach to talking, learning and working on health care reform in Mississippi to maximize the opportunity we have before us.
Source: The Kaiser Commission on Medicaid and the Uninsured
Author: Ed Sivak, MEPC Director
