Why Governor Says No to Current Budget Plan

lawmakers have until July 1, to have a new budget in place

With less than a week before the new fiscal year begins, Governor Haley Barbour and state lawmakers have reached a stalemate in budget negotiations. MPB's Lawayne Childrey reports.

Lawmakers had reached a tentative agreement on balancing the state’s 5 billion dollar 2010 budget. But Governor Haley Barbour nixed the proposal because he says it superseded Mississippi Code requiring the governor to ensure that the state Medicaid budget is balanced.

“I’m particularly not going to ignore a law like the hospital association wants me to in order to give Medicaid a blank check because that would be a time bomb.”

The budget stalemate comes a week before the beginning of a new fiscal year. House Speaker Billy McCoy of Reinzi, says lawmakers are already feeling the heat.

“We’re in a crisis time now in meeting the deadline to get this completed in the legislative process. You just can’t throw out all these appropriations bills and get them done in two hours. We’re taking care of the people’s business and the suggestion of spending billions of dollars.”

At this point neither side seems willing to budge but according to Governor Barbour there is a solution.

“Understand that if Medicaid runs a deficit that the governor will reduce spending to be sure that there is no budget deficit. Within the confines of that we’ve already agreed on some compromises. I’ve agreed to accept 60 million dollars even though the hospitals themselves last year were saying their fair share was 90 million dollars.”

McCoy and some other house members believe cuts would lead to hospital layoffs and the loss of services.

“Hopefully the governor will see the light of day and realize that other people have a right to an opinion. It is a democratic form of government where you got three branches with balance of power. The governor cannot and must not be a dictator.”

In a written statement Tuesday McCoy said the governors attempt to stop a state budget that had been mutually agreed upon by both the house and senate is beyond belief. For MPB news, I'm Lawayne Childrey.