The Latest: Leaders cut spending, fail to agree on borrowing

JACKSON, Miss. (AP) - The Latest on Mississippi budget and bond negotiations (all times local):

10 p.m.

Mississippi lawmakers have agreed to cut overall spending for the budget year that begins July 1, meaning less money for public schools, community colleges, universities, and just about every other state agency.

They reached an agreement Saturday on a bill that was described as “mighty ugly” by House Speaker Pro Tem Greg Snowden, a Meridian Republican. Leaders say it could mean program cuts and layoffs.

Spending will fall by more than 4 percent compared to what was originally budgeted for this year. Since that original document, Gov. Phil Bryant has ordered $170 million in spending cuts over four rounds.

K-12 education will take a small cut, while universities and community colleges will be cut more steeply.

Mississippi’s tax revenue is flagging because of a slow economy and hundreds of millions in tax cuts.

Estimates show tax cuts will subtract $350 million from revenue in 2018. Lt. Gov Tate Reeves and House Speaker Philip Gunn said they want to continue the cuts.

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Leaders of the Mississippi House and Senate were unable to agree on a borrowing plan for the upcoming budget year, in a dispute fueled by House leaders’ desire to divert some taxes collected on internet sales to road and bridge work.

House Speaker Philip Gunn, a Clinton Republican, says House members worked to accommodate demands from Lt. Gov. Tate Reeves. Reeves dismisses the House plan as “fake money,” saying he doesn’t think Mississippi can tax internet sales, but the House had changed its plan to only use voluntary collections.

That failure means there will be no new money for transportation. Universities, community colleges and state agencies will miss out on $150 to $200 million that would have paid for construction projects.

Lawmakers also failed to agree on a bond bill in 2012, the first year Reeves and Gunn held their respective positions.

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11 a.m.

Mississippi lawmakers are trying to conclude budget talks Saturday, faced with the prospect of cutting state spending as much as 4 percent compared to what they originally budgeted for this year.

House and Senate leaders are supposed to agree by Saturday night on dozens of bills to write a $6 billion-plus budget for the year beginning July 1. That task grew more difficult Friday when lawmakers lowered the revenue estimate for the upcoming year by $175 million.

Gov. Phil Bryant has cut this year’s budget by more than $170 million to offset shortfalls.

Lawmakers were already looking at cuts, but had hoped to set aside a reserve to cushion midyear shortfalls next year. Lower revenue could reduce the amount in reserve, lead to cuts in K-12 education spending, or both.