Lawmakers Tackle Budget Shortfall

Governor Haley Barbour discusses economic solutions with business leaders.

State lawmakers are pondering solutions to the state's tenuous budget situation. MPB's Carl Gibson reports...

On a windy Mississippi afternoon, government and commerce officials Hobnob over barbecue, sweet tea and the economy. Governor Haley Barbour has announced plans to pass down additional funding cuts, but he says education must be spared as much as possible.

"Now, with the 5 percent cut that we made, K-12 spending is still going to be higher than it was last year, still going to be going up. But higher education will get a small, but not very large cut, because that's our top priority."

The state has seen some budget relief from the federal government's stimulus package. However, State Treasurer Tate Reeves says Mississippi won't truly recover without an educated workforce.

"Our unemployment rate is too high, over 9 percent. And we've got to continue to work toward a consensus to create jobs, to better educate our citizens and continue to build a workforce that is sought out by national and international companies."

An educated workforce won't emerge until universities can raise retention rates, according to Lieutenant Governor Phil Bryant.

"See, those students begin, and drop out and then after they drop out, they have a note to repay. And we've got to tell schools, if they're in there, you need to work harder to keep them at your university."

Legislators will meet this January to decide on the budget for fiscal year 2011.

For MPB news, I'm Carl Gibson.