Mississippi

Mississippi

Budget Links 

FY2026 (enacted)
FY2026 (proposed)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)

Enacted Budget – Fiscal Year 2026

Mississippi Governor Tate Reeves signed the fiscal 2026 budget on June 19 authorizing $7.86 billion in state support funds, a decrease of $514 million, or 6.1 percent, from fiscal 2025. General fund appropriations total $7.14 billion in fiscal 2026, an increase of $62 million, or 0.9, percent over fiscal 2025. General fund revenues are projected at $7.63 billion, a 0.4 percent increase from the current year. The budget sets aside 2 percent of projected revenue, or $152.5 million, as required by law. The legislature retained $2.76 billion in reserve funds that is available to address shortfall in revenues or fiscal 2026 deficits.

The budget provides funding for a health insurance rate increase of 6.5 percent and a 0.5 percent increase for Public Employees’ Retirement System employer contributions. The budget fully funds the Mississippi Student Funding Formula, provides an increase in the Educational Scholarship Account Program and for National Board Certification supplements, and allocates funds for the Mississippi Teacher Residency Program. The budget also includes additional funding for the Division of Medicaid for operational expenditures due to a reduction of the FMAP rate and the increased cost of mandated medical services. Additionally, the budget provides funds to the Department of Corrections for increases in the medical program and to increase the per diem at all regional facilities. 

Enacted Budget Information
2025 Legislative Session Budget Summary 

Proposed Budget - Fiscal Year 2026

On November 15, 2024, Mississippi Governor Tate Reeves released his fiscal 2026 budget recommendation. The proposal calls for $7.80 billion in general fund agency appropriations, a decrease of 0.8 percent from fiscal 2025. General fund revenue estimates for fiscal 2026 total $7.63 billion, an 8.5 percent increase over the prior year amount of $7.03 billion. The budget sets aside two percent, or $153 million of general funds leaving a total of $7.47 billion available for appropriations for fiscal 2026. 

Proposed Budget Highlights 

The proposed budget highlights the governor’s priorities of eliminating the state’s income tax and continuing Mississippi’s economic development momentum, strengthening and protecting the state’s critical infrastructure assets, raising education standards while defending parent’s rights, making the state safer, and celebrating our American heritage. 

Economic Proposals

• Proposes eliminating the state income tax by reducing the income tax to three percent for FY26 and phasing it out completely by calendar year 2029. 
• Recommends allocating funds to the Mississippi Development Authority (MDA) Site Development Program to keep Mississippi a top destination for business and continue laying the foundation for long-term economic growth. 
  

Infrastructure Proposals

• Proposes establishing a revolving loan fund at MDA for revitalization and modernization of the state’s ports, airports, and railways. 
• Allocates funding to hire an independent cybersecurity firm to assess and strengthen the security of our state agencies. 
• Recommends establishing a statewide Next Generation 911 plan to provide a more sustainable funding model for 911 services. 
  

Education Proposals

• Encourages the Mississippi Department of Education to revise the accountability system to place greater weight on proficiency and less weight on growth in academic achievements. 
• Calls on the Legislature to establish a Parents’ Bill of Rights. 
• Proposes creating a Model Mississippi Digital Responsibility Policy to provide a framework for cell phone and device usage to school districts. 
• Recommends funding to provide additional school-based therapists to support mental health in schools. 
• Increases funding for the Education Scholarship Account program to eliminate the current waitlist for the program. 
  

Public Safety Proposals

• Proposes creating a Youth Court Division of the Chancery Court to have jurisdiction over all child welfare matters. 
• Increases the budget for the Capitol Police to fund salaries, patrol cars, equipment, and other costs for additional officers to adequately patrol the expanded Capitol Complex Improvement District. 
• Proposes incentives for the Mississippi National Guard including offering free lifetime hunting licenses, reducing the cost of vehicle tag fees, and extending school choice options to include the children of Guardsmen. 
• Recommends increasing the per diem inmate reimbursement rate for each state inmate housed in a regional facility. 
  

Celebrating our American Heritage Proposal

• Allocates funds to the America250 fund to allow for grant programs, celebratory events, and marketing for the 250th  Anniversary of the United States of America. 
  

Proposed Budget Information
Fiscal Year 2026 Budget Proposal

Governor's Press Release