Recent Updates
Family Income and the Decision to Attend College
Nationally, students from low and moderate-income families are less likely to enroll in post-secondary education and attend top-rated public universities than their higher-income counterparts. 56% of high school graduates from low-income families (income under $25,000) are not enrolled in post-secondary education within 2 years of graduating. In comparison, 26% of students from families with income between $75,000 and $125,000 are not enrolled in higher education.
Thousands of Mississippi’s high school students and adults need stronger financial aid and resources for support with applying for and enrolling in higher education. These resources are important for ensuring more students receive the post-secondary credentials that are critical to individual economic mobility and the state’s long-term advancement and prosperity.
Learn more in this week's Policy Matters blog.
Mississippi’s State Income Tax has High Impact on Low Income Families
A recently updated report from the Center on Budget and Policy Priorities highlights three facts that you may not know about Mississippi’s State Income Tax.
Get the facts in Today's Policy Matters blog
Learn more:
Read the FULL report from the Center on Budget and Policy Priorities
Excerpt from: The Impact of State Income Taxes on Low-Income Families in 2011
"Taxing the incomes of working-poor families runs counter to decades of efforts by policymakers across the political spectrum to help families work their way out of poverty. The federal government has exempted such families from the income tax since the mid-1980s, and a majority of states now do so as well. Since 1991, the number of states with income taxes on working-poor families of four has fallen from 24 to 15, and even in most of the remaining 15 states, the income tax liabilities of these families have declined significantly since the 1990s."
Current Tax Loopholes are Costing The State Much Needed Revenue
Policy Matters Blog:
Major Publications:
In the News:
Loopholes leak taxes
Closing corporate tax avoidance would change cuts-only revenue approach (Clarion-Ledger)
NEW Report: State of Working Mississippi 2012 Finds Mississippians Have Not Experienced Substantial Wage Change In Over a Decade
Mississippi’s labor force remains one of the state’s greatest assets. However, the last ten years have made many Mississippi workers and their families feel less secure. As Mississippi’s economy, jobs and workforce recover from the two recessions of the last decade, the state has the opportunity to ensure that all employers, workers and families can advance and prosper.
The State of Working Mississippi 2012 report describes the status of the state’s labor force, wages, income and economic security, and addresses public investments, taxes, and state revenue. The report provides reviews of trends by race, gender and educational attainment and concludes with a variety of strategies that can be implemented statewide through the state’s leadership in the private, public and non-profit spheres.
Read CHAPTER1: MISSISSIPPIANS, JOBS AND THE LABOR FORCE
CHAPTER 3: INCOME, ECONOMIC SECURITY AND FAMILIES
CHAPTER 4: PUBLIC INVESTMENTS, TAXES AND STATE REVENUE
Learn More:
In the News
On the Policy Matters Blog
- INTRODUCING THE STATE OF WORKING MISSISSIPPI 2012
- State of Working Mississippi 2012 Chapter 1: JOBS
- State of Working Mississippi 2012 Chapter 2: WAGES
- State of Working Mississippi 2012 Chapter 3: INCOME AND POVERTY
- State of Working Mississippi 2012 Chapter 4: TAXES AND STATE REVENUE
Governor Bryant Releases FY 2013 Executive Budget Recommendation
Earlier this week, Governor Bryant released his Executive Budget Recommendation for FY 2013. The budget is to provide guidance as the legislature creates the budget.
It will be considered by the legislature in addition to the Joint Legislative Budget Committee’s recommendation and Governor Barbour’s recommendation that was released last Fall. Bryant’s budget has some good elements as well as some proposals that bring cause for concern.
- Take a look at key components of Governor Bryant’s recommendation on the Policy Matters blog.
4 Key Points From The Legislative Economic Briefing
Thursday, the Mississippi Legislature was briefed by the state economist and the state treasurer on the state’s current economic growth, employment, General Fund revenue, bonding and future outlook.
Below are 4 key points made by State Economist Dr. Darrin Webb during the Legislative Economic Briefing at the Capitol on January 19th.
1. Mississippi’s overall employment is not projected to reach 2000 levels until 2016. The state still has 55,000 fewer jobs than it did at the employment peak in February 2008.
2. Many communities continue to experience challenges after the recession. Forty-six Mississippi counties lost jobs from 2010 to 2011.
3. Mississippi’s General Fund collections are still down after the recession, and state revenue will not pass FY2008 levels for several years.
4. Federal expenditures represent 1 out of every 3 dollars of Mississippi’s economy.
- Read more in Today's Policy Matters blog
- Legislative Economic Briefing (printable pdf)
Final Executive Budget Recommendation (EBR) Released: State Moving Into Fifth Year of Cuts
The EBR from Governor Barbour who leaves office in a few weeks was released December 21st. Despite the cuts approach, the EBR does make several notable recommendations to support at risk and working families.
MEPC will provide further analysis of both the legislative and executive budget recommendations in the coming weeks as we prepare for the legislative session.
JLBC Budget Recommendations For Fiscal Year 2013: State Agencies Face More Cuts
The Joint Legislative Budget Committee (JLBC) has submitted its Fiscal Year 2013 Budget Recommendation for consideration by the Legislature and many state agencies will see their funding cut.
It is essential that our state consider options for building and maintaining the programs that are vital to the people of our state. A balanced approach that includes raising revenue, instead of a cuts only approach, is the pathway to building the public structures needed to move Mississippians along a pathway to prosperity.
Take a closer look at the JLBC Budget Recommendation Breakdown on our Policy Matters blog.
JLBC Budget Recommendations (PDF)
New Study Highlights Need for Mississippi to Update Corporate Tax Laws
A new study from the Institute on Taxation and Economic Policy (ITEP) and Citizens for Tax Justice (CTJ) compiles profit and state tax data from 265 major corporations operating in the United States.
The ITEP report suggests multiple ways that states can improve their corporate tax laws to halt the decline in this vital revenue source and make sure corporations are not able to shift income out of state to avoid taxation.
Read the report and see the recommendations in today's Policy Matters blog post:
Mississippi’s Current Corporate Tax Laws are Costing The State Much Needed Revenue
Revenue Estimate for FY 2013: Another Tight Budget Year May Threaten Sources of Help to State’s Poor
Neither the State nor the Nation has fully recovered from the recession ending in June 2009. In Mississippi, economic growth is nearly at a standstill. Mississippi leaders are tasked with making important decisions about funding public programs and structures that will impact economic opportunity.
This month, the Census Bureau released a new Supplemental Poverty Measure that is intended to better incorporate the expenses and benefits individuals encounter in today’s economy.
The new measure demonstrates that SNAP (previously Food Stamps) and the Earned Income Tax Credit both helped substantially reduce the number of Americans living in poverty in 2010.
The risk of continued cuts to key programs that are proven to support Mississippi’s working poor families necessitates a balanced approach that includes raising revenue.
Learn More:
In The News
Sources of Help for Miss.'s Poor Threatened
Lawmakers: Cuts Inevitable
On the Policy Matters Blog
Revenue Estimate for FY 2013 Released, Another Tight Budget Year Forecast
Part 1: New Poverty Measure Shows Public Programs Reduce the Number of Americans Living in Poverty
Part 2: Food Assistance Programs Provide Meals For Many Mississippi Families This Holiday Season
New Report Seeks to Help Mississippi’s Working Families Understand and Achieve Economic Security
County-By-County Data Available, Online Calculator Will Allow Individuals to Calculate Their Own Economic Security
Wider Opportunities for Women (WOW) in partnership with the Mississippi Economic Policy Center (MEPC) have released a new report, The Basic Economic Security Tables™ for Mississippi noting that strategies to build economic security must look beyond low skill and low wage jobs.
The Basic Economic Security Tables calculate how much a Mississippi family needs to earn for long-term economic security for over 400 family types at the state and county level. County fact sheets and an online calculator have also been developed as a resource for residents and communities across Mississippi.
Some of the findings include:
• A single parent with a preschooler and a school-age child must earn $43,968 a year with benefits to achieve long-term economic security.
• Two parents who are both working full time with a preschooler and a school-age child must earn together nearly $55,584 a year to reach economic security.
“The findings of the report affirm the ongoing strategy within the state to replace low skill jobs with high skill high wage jobs. In the process, it is essential that we provide support services and access to training for in demand jobs for low skill, low-wage Mississippians” said Ed Sivak, Director of the Mississippi Economic Policy Center.
“Too many Mississippi families are living without basic economic security with most workers unable to cover basic expenses and build savings,” said Donna Addkison, President and CEO of Wider Opportunities for Women. “Hard-working Americans need elected officials and policymakers to focus on creating good jobs and access to the education and job training that will allow them to attain and keep these jobs and move up the economic ladder.”
Full Report UPDATED Basic Economic Security Calculator and Wage Tools
Full Press Release WOW Fact Sheet
MEPC Fact Sheet Basic Economic Security Terms Guide
State-Level Census Data Shows Increase in Poverty Across All Racial Groups
A second round of more definitive 2010 Census data figures released September 22nd as part of the Census Bureau’s American Community Survey (ACS) show a sharp rise in poverty in every region of Mississippi last year, highlighting the widespread impact of the recession.
- The number of children living in poverty continued to increase last year amid the recession, 27.1% of the state’s children now live in families that fall below the poverty line.
- The overall rate of Mississippians aged 65 and younger without health insurance was 18.2 - up from 17% in 2008.
- Incomes also declined substantially. Adjusting for inflation, median incomes declined $1,526 from $38,377 in 2008 to $36,851 in 2010.
This past week’s budget hearings have shown that these trends are not limited to the national lens. As we move forward in the crafting of the budget and strategies to address high poverty, it is important that Mississippi take a balanced budgeting approach that includes raising revenues to preserve investments in health care, education and asset development.
Take a closer look at the numbers in today's Policy Matters blog:
American Community Survey Release: More Mississippians Living in Poverty than Ever Before
Joint Legislative Budget Committee Hearings End
The FY 2013 Budget Hearings ended last week. MEPC analysts attended several hearings during the week and provided analysis on the testimony of the Mississippi State Personnel Board, the State Institutions for Higher Learning, Dr. Darrin Webb, the State Economist, the State Department of Health, the Department of Human Services, the Public Employees Retirement System and the Mississippi Department of Education.
Some highlights from the week include:
Hearing highlights from the Mississippi State Personnel Board and the State Institutions for Higher Learning are covered in the Day 1 Policy Matters blogs below:
Hearing highlights from Dr. Darrin Webb, the State Economist and Medicaid changes are covered in the Day 2 Policy Matters blogs below:
- State’s Fragile Economic Recovery is Slowing, State Economist Reports
- Medicaid Changes on the Horizon
Hearing highlights from the State Department of Health and the Department of Human Services are covered in the Day 3 Policy Matters blogs below:
- Poverty and Low Health Outcomes Related; Targeted Investments Work
- Human Services: Budget Shortfalls Lead to Long Wait Lists
Hearing highlights from the Public Employees Retirement System and the Mississippi Department of Education are covered in the Day 4 Policy Matters blogs below:
- The Recession Has Impacted the Public Employees Retirement System, Potentially Affecting Resources Available for Retirement
- Dept. of Education Asks for $300.3 Million Above Last Year For K-12 Students
Mississippi’s Lost Decade: New Census Data Show Increases in Poverty, Decreases in Incomes over the Last Ten Years
On September 13th, the U.S. Census Bureau released the first of two rounds of data on the poverty rate, median incomes and health insurance. In Mississippi, the data revealed a sobering snapshot of working families over the last ten years.
The poverty rate in Mississippi rose from 15.6% at the start of the decade to 22.9% in 2009 / 2010. Mississippi was the only state with a poverty rate above 20% at the end of the decade and experienced the second largest increase in poverty.
- Read more on poverty and income in part one of our breakdown of the data in this Policy Matters blog post.
Rising rates of uninsured Mississippians demonstrate that the status quo is leaving more working Mississippians without health coverage than a decade ago.
- Learn more about the rising number of Mississippians without health insurance in our second Policy Matters blog post on the new data.
In 2009, Teen Births Across Mississippi Cost Taxpayers an Estimated $155 Million
Teen childbearing impacts counties across Mississippi in both rural and urban areas. Additionally, Mississippi’s teen birth rate of 64.1 births per 1,000 teens age 15-19 exceeds that national rate for women of the same age. Teen birth rates for white and non-white teens both exceed the national rates for their demographic group.
The majority of taxpayer costs are associated with negative outcomes for the children of teen mothers and fathers, including lost tax revenue from their lower wages and consumption as adults and higher costs for the foster care and criminal justice systems. Taxpayer costs provided would be saved if all would-be teen parents delayed childbearing until age 20 or 21.
Fact Sheet: Economic Impact of Teen Births in Mississippi
On the Policy Matters blog: The Economic Costs of Teen Births in Mississippi
In the News:
Clarion Ledger:
Teen moms costly to state: Epidemic delivers $154 million bill to taxpayers each year
Sun Herald:
Study: Teen births cost Miss. $154.9M in '09
Jackson Free Press
Report: Teen Births Cost State $155M
Balanced Approach Critical to Long Term Economic Success of Mississippi
Recently, the 2011 Kids Count Data Book and state profiles of child well being were published by the Annie E. Casey Foundation. Inevitably, stories will be written about Mississippi’s routine ranking of 50th on the Kids Count scale, about some incremental gains and the long road the state needs to travel to make improvements.
After reading these stories for a number of years, I’m of the opinion that the ranking is not the most useful indicator in the Kids Count Portfolio for eliciting a call to action or reforms for improvement. Between the lines of the overall ranking, however, a number of indicators reported by the Census and Kids Count show that Mississippi is at a cross roads.
In the absence of real policy reforms that address the root causes of long standing poverty the indicators paint a picture of limited economic progress and potential as we move into the future.
Take a closer look at the data on the Policy Matters blog.
State Budget & Tax Roundup
Moving forward, a balanced approach that includes raising revenues instead of a cuts only approach is critical to maintaining jobs and enhancing the quality of state services.
- Updated: Revenue Options For Mississippi
- Governor's Revised Executive Budget Recommendation Letter to the Legislature
- Revised Executive Budget Recommendations
Policy Matters blogs on Budget & Tax:
- Fiscal Year 2011 State Budget Wrap Up
- Any Way you Slice It, Education in Mississippi Has Been Cut
- Looking Beyond the Numbers: Mississippi Taxes as a Percent of Income
- Mississippi Ranks 46th in State and Local Taxes Per Capita
- Tax Expenditure Series Part 1: What is a Tax Expenditure?
- Tax Expenditure Series Part 2: How Much Does Mississippi Spend on Tax Expenditures?
- Tax Expenditures Part 3: How Mississippi’s Tax Expenditure Report Could Be Enhanced
- Lean Budget Enacted for FY 2012
- Proposed Cuts to Counties Could Lead to Regressive Property Tax Increases
- Mental Health Cuts Target Most Vulnerable
- Budget Negotiations-One Step Forward, Two Steps Back
- Education and Prosperity for Mississippi’s Working Families Threatened
- State Funds Still Well Below Pre-Recession Levels
- K-12 Funding – Separating Fact from Fiction
Letters to the Editor on Budget:
Making Mississippi Competitive: Solutions for Building Assets in Low-Wealth Communities
Low-wage work and the absence of assets, in particular, play a huge role in determining which families avert financial disaster during an emergency and which families move forward through homeownership, education and entrepreneurship.
MEPC in partnership with the Foundation for the Mid South, has released a report that overviews asset levels and certain barriers within the financial service sector to building assets in Mississippi.
The report also suggests a variety of ways that bankers, policymakers and families can create an environment to facilitate saving among Mississippi’s working families that ultimately builds wealth.
Click here for an electronic version of the report.
