Recent Updates

Unemployment Insurance Provides Needed Aid to Long-Term Unemployed

With jobless numbers on the rise this month, the need for unemployment insurance has become even greater for the long-term unemployed in the state. One of the biggest challenges facing the long-term unemployed in Mississippi is simply a lack of job opportunities.

Since the recession began more than two and a half years ago, Mississippi has lost 77,900 jobs.   For Mississippians that are currently struggling 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.

Take a closer look at the magnitude and duration of job loss in Mississippi over the four most recent recessions in today's Policy Matters Blog post.

Mississippi Accepts $98 Million in Federal Funding for Education

 Funding Saves 2,000 Education Jobs Statewide

As the state struggles to recover from the recession, it is important that we set priorities to keep Mississippi’s recovery on track.  The Governor’s office announced yesterday that Mississippi would be applying for $98 million in Federal Funds from the recent educational stimulus package passed by Congress.

The Education, Jobs and Medicaid Assistance Act is a prime example of good policy.  This legislation allows the state to retain 2,000 jobs while providing important resources for the quality education of Mississippi’s 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.

Read the Full Op-Ed in the Clarion-Ledger

Education, Jobs and Medicaid Assistance Package Good for Mississippi

Nearly $250 million available for health care, education

The Education, Jobs and Medicaid Assistance Act recently passed by the U.S. Senate provides nearly a quarter of a billion dollars for the state budget.  As Mississippi struggles to preserve critical levels of education, training and health care, the legislation represents an important boost for the state’s economy and its people in these difficult times.

One concern raised about the Act includes a scenario where Mississippi needs to spend state resources of $50 million to $100 million to access a portion of the total $250 million available to support teaching jobs. The concern stems from language in the new law that requires states to maintain a level of spending on education – elementary, secondary and public institutions of higher learning – in the current budget year equal to levels spent in the 2009 budget year.

The law, however, contains an alternative “Maintenance of Effort” requirement for states that have experienced declining tax revenues over the last three years. In states with 2009 tax collections that were less than 2006 tax collections, states must only maintain a level of spending on education at budget levels for the year 2006. Mississippi’s tax collection history and current year budget appear to meet both criteria.

If additional analysis of the new law finds that Mississippi needs to spend resources to access the education funding, then policymakers should work together to find a creative way to implement the policy. Under no circumstances should new funding be left on the table. On the other hand, if Mississippi is able to access the funds without spending additional state resources, then it makes an already good deal even better.

Read the Full Press Release

Read the Full Op-Ed in the Northeast Mississippi Daily Journal

Health Care Reform is Good for Working Mississippians

August 4th, 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, 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.  
  

Balanced Approach Needed to Address Long Term Deficits when Economy Sufficiently Recovers

Temporary Current Deficits Create Demand to Blunt Effects of Downturn

In partnership with the Foundation for the Mid-South and America Speaks, the Mississippi Economic Policy Center co-hosted a national discussion on the federal budget June 26th.  As discussions on budget issues begin, several key points serve as important background:

• Long-term deficits are unsustainable and pose significant challenges to the nation’s economy;
  Current deficits are necessary and create demand to provide economic relief during downturns;
  
• Actions to address long term deficits through spending cuts and tax increases should only be taken once the nation’s economy has recovered sufficiently to handle them;
  
• Long-term deficit reduction actions should take into account people’s ability to pay and not make low-income families worse off;
  
• Long-term deficit reduction actions must be balanced implementing cost savings in discretionary spending, a slow down in the rise of health care costs and revenue increases.
  
  Read the Full Release          
  See the WLBT coverage of the event

Working Smarter: Investing in Mississippi's Most Valuable Resource

Despite working hard, thousands of Mississippi's working families are falling short. By embracing proven policies and creative partnerships, Mississippi can use existing resources to build economic prosperity.

In light of cost increases and slow wage growth, preserving investments in and enhancing the state's workforce training system represents one of the most effective avenues to improve economic opportunities for Mississippi's working families - especially those that are low-income.

As one looks beyond the 2010 legislative session, three policy actions offer Mississippi the opportunity to increase family wages, workforce productivity and global competitiveness. The actions include:

• Preserving investments in Adult Basic Education
• Continuing to develop training systems that connect trainees to in demand careers
• Pursuing entrepreneurial training partnerships

Read more

Mississippians Facing Worst Job Loss in 30-Year Recession History

County Level Data Available

Since the start of the 2007 Recession Mississippi has lost over 72,000 jobs.  A new brief released by the Mississippi Economic Policy Center (MEPC) examines the link between the state’s staggering job loss numbers and the need for Unemployment Insurance Compensation Reform. With an increasing number of Mississippians out of work and looking for employment the need for unemployment insurance has drastically increased.

Unemployment Insurance not only stabilizes working families, it also provides critical economic activity in Mississippi’s communities.

• Magnitude of Job Loss Supports Unemployment Insurance Reform (4/10 pdf)
  

Balanced Approach that Includes Raising Revenues Needed to Navigate Budget Challenge

Like most states across the country, Mississippi is experiencing difficulty generating revenue to support critical state services such as K-12 and higher education, public safety and agriculture.  For Mississippi to be competative when prosperity returns, a balanced approach budgeting, one that includes raising revenues, is needed.  The following briefs highlight the state's revenue shortfalls and options for raising revenue.

• Governor Barbour’s Revised Budget Recommendation Proposes More Cuts (4/10 pdf)
  
• FY 2010 Revenue Numbers Prompt Fifth Round of Budget Cuts (4/10 pdf)
• Revenue Estimates for FY 2010 and FY 2011 Project Further Declines (3/10 pdf)
  
• FY 2010 Budget Cuts Restored with Special Funds; More Revenue Still Needed (3/10 pdf)
• Medicaid Change Saves Mississippi $36.7 Million (2/10 pdf)
• Lottery In Mississippi: A Gamble for State Budget and Working Families (2/10 pdf)
• Fourth Round of Budget Cuts Highlights Need for Balanced Approach (2/10 pdf)
  
• Revenue Options for Mississippi's Fiscal Crisis (Updated 2/10 pdf)
• Nonprofit Tax Exemptions and Estimated Revenue Impact (2/10 pdf)
  
• Legislative Budget Recommendation - Actual (12/09 pdf)
• Who Pays?  Overview of who pays state and local taxes in MS (11/09 pdf)
• Executive Budget Recommendation - MEPC Summary (11/09 pdf)
  • Executive Budget Recommendation - Actual (11/09 pdf)
• Revenue Estimate Summary / Options for Raising Revenue (11/09 pdf)
  • Mississippi Revenue Estimate (11/09 pdf)
• First Quarter Revenue Report (10/09 pdf)

A Closer Look: Mississippi's Unemployment Insurance Trust Fund and the Workforce Enhancement Training (WET) Fund

The Unemployment Insurance (UI) program is a federal-state partnership designed to replace the lost earnings of eligible workers who become unemployed through no fault of their own.  UI benefits are funded through the Unemployment Insurance Tax which is paid by employers.  A portion of the tax is returned to employers through a rate reduction (.3%) and then an additional contribution of .3% is collected and used to fund worker training administered by Mississippi's community colleges, provided the UI Trust Fund remains above three (3) solvency targets. As a result of the recession, the UI Trust Fund balance has fallen below one of the three (3) solvency targets. 

This memo provides background information on the UI Trust Fund and the Workforce Enhancement Training Fund as well as a comparison between the existing law and the proposed changes to keep this workforce training program in place.

• UI Trust Fund and WET Fund Overview (1/10 pdf)

Report Finds One in Three Mississippi Households Lack Adequate Income to Meet their Basic Needs

With basic living costs rising faster than incomes, more and more of Mississippi's families are facing economic hardships as they struggle to cover basic needs such as food, shelter, health care, and child care.  By comparing household incomes to bare-bones budgets, this report finds that 32% or nearly one in three Mississippi households does not earn enough money to cover their basic living expenses.

For more information, click on the links below.

• Listen to MEPC Director, Ed Sivak on Mississippi Edition (12/17/09)
• Overlooked and Undercounted Executive Summary (pdf 12/09)
• Overlooked and Undercounted Full Report (pdf 12/09)

Map Released on Check Casher Concentration in Jackson, MS

Using data provided by the Mississippi Department of Banking and Consumer Finance, MEPC created a map to illustrate the locations of check cashers within the city limits of Jackson.  The map shows high concentrations of check cashing businesses in the most economically distressed parts of the city.  To view the map click here.