“We are charting a better and more prosperous course for our state and her people that will last for generations,” proclaimed Gov. Tate Reeves in his FY 2027 executive budget recommendations.
Somehow, he foresees this “prosperous course” without addressing the $26 billion PERS shortfall. Moodys has cautioned, “PERS is on a trajectory of asset erosion unless offset by higher government contributions.”
Reeves released an $8.3 billion executive budget which would be $453.5 million over the current budget. Of this increase, $280 million would go toward 15 programs chosen by the Governor. Another $229 million would go for increased Medicaid spending. He also included $56 million in budget cuts to various agencies, including $19.3 million for four military, police, and veterans programs, $18 million for bond and interest payments, and $3.8 million for the Arts Commission.
His chosen projects included:
· $100 million for an Energy Infrastructure Bank plus $20 million for energy infrastructure projects;
· $3 million for an innovation accelerator program;
· $20 million for new site developments;
· $1 million for workforce childcare;
· $1.4 million for Accelerate Mississippi Talent Solutions Centers;
· $9 million for three 16-bed stand-alone adult psychiatric emergency service locations;
· $5 million for an additional 16-bed adolescent crisis stabilization unit and a 28-bed secure adolescent residential substance use disorder unit;
· $10 million for a specialized care center for children with extreme behavioral and mental health issues;
· $20 million to expand the Oakley Youth Development Center;
· $3 million for Capitol Police expansion and vehicles;
· $15 million for the MEMA Disaster Trust Fund;
· $12.75 million for 25 youth court chancellors and staff;
· $8 million for a new youth court case management system;
· $2.1 million for trial and appellate judges pay increases; and
· $50 million for debt reduction.
Notably unmentioned and unbudgeted was any increase in PERS funding. No surprise. Reeves has virtually ignored the growing PERS funding crisis during his two decades in public office.
As state treasurer (2004 - 2012), he served as an ex-officio member of the PERS board, becoming well aware of PERS’ mounting problems. After his 2011 election as lieutenant governor, the same year Gov. Haley Barbour’s PERS Study Commission recommended changes to save PERS, Reeves ignored the problem for the eight years he controlled the state senate. In 2019 he was elected governor and even Chat GPT has noticed his PERS malingering: “Since taking office, Gov. Tate Reeves has largely remained silent on the Mississippi Public Employees' Retirement System (PERS) shortfall, despite a long history of deep involvement with state finance.”
As Reeves issued his budget message, financial experts were telling legislators PERS needs $200 million more every year for 30 years.
“They shall turn away their ears from the truth” – 2 Timothy 4:4.
Bill Crawford is the author of A Republican’s Lament: Mississippi Needs Good Government Conservatives.
