Mississippi Fiscal Summary January, 2008

General Fund Estimates, FY 2008 Beginning cash balance, 7/1/07 $226,197,915 1/ Estimated revenues 4,933,200,000 2/ Less: Two Percent (2%) Holdback 102,469,399 Total estimated funds 5,056,928,516 Less: Total Budget for FY 2008 Regular Appropriations, FY ,932,302,012 From and After FY ,352,958 Reappropriations from FY ,575,000 General Fund Transfers 37,240,000 Total estimated expenditures, FY 2008 (5,005,469,970) Estimated General Fund Balance, June 30, ,458,546 Add: Two Percent (2%) Holdback 102,469,399 Less: 50% transfer to Working Cash (76,963,972) Estimated beginning cash balance, 7/01/08 $76,213,972 3/ 1/ This beginning cash balance is after transfers to Working Cash and includes From and After of $34,352,958 and Reappropriations of $1,575, / Estimated revenues reflect a $11,800,000 upward revision (October 2007) from the Sine Die estimate. 3/ Adjusted for $750,000 in Aid to Municipalities. 2

Gross State General Fund Revenue Estimates, FY 2009 (In Millions) Total: $7,494.8 Auto privilege Sales Petroleum Other Gaming Use Insurance Premium Corp. Income Indiv. Income Non-Tax Commission 3

Sales tax: Cities$420 Public School Building Fund20 Four-Lane Highway Construction Project4 School Ad Valorem Tax Reduction Fund42 Education Enhancement Fund292 Motor Vehicle Ad Valorem Tag Reduction Fund179 Other31988 Income tax: Individual Income Refund Account384 Corporate Income Refund Account47431 Use Tax: Education Enhancement Fund29 School Ad Valorem Tax Reduction Fund4 Motor Vehicle Ad Valorem Tag Reduction Fund Motor Vehicle Ad Valorem Tag Reduction Fund Gaming Taxes: Municipalities and Counties137 Bond Sinking Fund36173 Insurance Premium Tax: Cities8 Counties8 Other Insurance Fire Fund2238 Petroleum Tax451 Auto Privilege Tax105 Other__160 TOTAL DIVERSIONS$2419 Estimated Diversions from Gross State General Fund Tax Commission Collections, FY 2009 (In Millions) 4

Net General Fund Revenue Estimates, FY 2009 (In Millions) Total: $5,076.0 Other Gaming Sales Insurance Premium Non-Tax Commission Indiv. Income Corp. Income Use 5

Less than 0% 0.0% to 10.0% Greater than 10% Retail Sales Growth January – November 2007 Over 2006 Mississippi 0.4% 6

General Fund Revenue Growth 7

General Fund Estimates, FY 2009 Estimated beginning cash, July 1, 2008 $76,213,972 1 Estimated revenues FY ,076,000,000 Total estimated funds 5,152,213,972 Less 2% Holdback (103,044,279) Funds available for FY 2009 $5,049,169, % of the FY2008 estimated ending cash balance of $153,927,945 or $76,963,972 will be transferred to the Working Cash Stabilization Fund. Beginning cash for FY 2009 has been adjusted for $750,000 in Aid to Municipalities. 8

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(In Millions)(% of Total) Public Education$2, % Higher Education % Social Welfare % Debt Service % Corrections % Hospitals/Hospital Schools % Agriculture & Economic Development % Military, Police and Veterans Affairs % Local Assistance % Fiscal Affairs % Conservation & Recreation % All Others % TOTAL$4, % General Fund Appropriations, FY 2008 NOTE: Total excludes potential deficit appropriations. 10

Allocation of General Fund, FY 1990, FY 2000, and FY 2008 Exp.Exp.App Public Education46.8%39.3%45.0% Higher Education17.7%18.7%16.8% Social Welfare 9.5% 8.9%10.5% Debt Service0.8%4.6%5.8% Corrections 3.7% 7.2% 5.4% Hospitals/Hospital Schools 4.4% 6.2% 5.2% Agriculture & Economic Dev.3.5% 3.2% 2.3% Military, Police & Veterans Aff.2.1% 2.2% 2.0% Local Assistance3.5% 2.2% 1.7% Fiscal Affairs2.5% 2.1% 1.6% Conservation & Recreation1.8% 2.0% 1.1% All Others3.7% 3.4% 2.6% TOTAL100.0%100.0%100.0% 11

12 Total Revenues, General and Special Funds, FY 1990, FY 2000, and FY 2007 FYFYFY General Fund 46.7%37.7%29.9% Special Funds State Sources 20.3%29.1%18.9% Federal Sources33.0%33.2%51.2%

Working Cash-Stabilization Reserve Fund (In Millions) FY 2005 $ * As of June 30. FY 2006 $18.9 FY 2007 $73.4