Governor Makes Budget Cuts

By: The Associated Press
By: The Associated Press

Mississippi Gov. Haley Barbour says he is cutting almost $54.3 million from Mississippi's nearly $6 billion budget.

His announcement Thursday was the second round of spending reductions Barbour has made since the fiscal year started July 1. He says he anticipates making another $160 million in cuts before the year ends June 30.

Combining the latest cuts with an earlier round in September, Barbour has now sliced more than $220 million. November marked the 15th consecutive month for Mississippi's tax collections to fall short of expectations.

Barbour says the cuts Thursday include a 5 percent reduction in Medicaid spending, which will take effect in February. He says he wants to give physicians and other Medicaid providers time to get used to the idea that their payments will be reduced.

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