MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Appropriations

By: Representative Capps

House Bill 99

AN ACT TO PROVIDE THAT THE STATE ECONOMIST SHALL CALCULATE AN EXPENDITURE GROWTH LIMIT PERCENTAGE EACH FISCAL YEAR TO BE USED IN DETERMINING LIMITATIONS ON THE ANNUAL GROWTH IN THE PROPOSED STATE GENERAL FUND BUDGETS OF THE LEGISLATIVE BUDGET COMMITTEE AND THE GOVERNOR AND LIMITATIONS ON THE ANNUAL GROWTH IN THE TOTAL SUM APPROPRIATED BY THE LEGISLATURE FROM THE GENERAL FUND; TO PROVIDE THAT THE EXPENDITURE GROWTH LIMIT PERCENTAGE FOR A FISCAL YEAR SHALL BE THE GREATER OF THE AVERAGE OF THE ANNUAL CHANGE IN THE INFLATION RATE OR THE STATE TOTAL PERSONAL INCOME FOR THE THREE CALENDAR YEARS ENDING IMMEDIATELY PRECEDING THE BEGINNING OF THE FISCAL YEAR; TO AMEND SECTIONS 27-103-125 AND 27-103-139, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE PROPOSED GENERAL FUND BUDGETS OF THE LEGISLATIVE BUDGET COMMITTEE AND THE GOVERNOR SHALL NOT EXCEED THE TOTAL SUM APPROPRIATED BY THE LEGISLATURE FROM THE GENERAL FUND FOR THE IMMEDIATELY PRECEDING FISCAL YEAR BY A PERCENTAGE HIGHER THAN THE EXPENDITURE GROWTH LIMIT PERCENTAGE PROVIDED BY THE STATE ECONOMIST; TO AMEND SECTION 27-103-211, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE TOTAL SUM APPROPRIATED BY THE LEGISLATURE FROM THE GENERAL FUND SHALL NOT EXCEED THE TOTAL SUM APPROPRIATED FROM THE GENERAL FUND FOR THE IMMEDIATELY PRECEDING FISCAL YEAR BY A PERCENTAGE HIGHER THAN THE EXPENDITURE GROWTH LIMIT PERCENTAGE PROVIDED BY THE STATE ECONOMIST; TO AUTHORIZE THE ANNUAL GROWTH LIMITATION ON GENERAL FUND APPROPRIATIONS TO BE EXCEEDED ONLY AFTER THE ADOPTION OF A CONCURRENT RESOLUTION BY A 2/3 VOTE OF THE LEGISLATURE; TO LIMIT THE NUMBER OF STATE SERVICE EMPLOYMENT POSITIONS AUTHORIZED IN THE APPROPRIATION FOR EACH STATE AGENCY FOR FISCAL YEARS 1999, 2000 AND 2001 TO THE NUMBER OF THOSE POSITIONS AUTHORIZED IN THE APPROPRIATION FOR THAT STATE AGENCY FOR FISCAL YEAR 1998; TO PROVIDE THAT FOR EACH FISCAL YEAR AFTER FISCAL YEAR 2001, THE TOTAL NUMBER OF STATE SERVICE EMPLOYMENT POSITIONS AUTHORIZED IN ALL APPROPRIATIONS FOR THE FISCAL YEAR SHALL NOT EXCEED THE TOTAL NUMBER OF THOSE POSITIONS AUTHORIZED IN ALL APPROPRIATIONS FOR THE IMMEDIATELY PRECEDING FISCAL YEAR BY A PERCENTAGE HIGHER THAN THE AVERAGE ANNUAL PERCENTAGE CHANGE IN THE STATE POPULATION FOR THE THREE CALENDAR YEARS IMMEDIATELY PRECEDING THE FISCAL YEAR OR 1%, WHICHEVER IS GREATER; TO AUTHORIZE THE EMPLOYMENT POSITION LIMITATION ON INDIVIDUAL AGENCIES TO BE EXCEEDED ONLY BY A 2/3 VOTE OF THE LEGISLATURE ON THE APPROPRIATION BILL FOR AN INDIVIDUAL AGENCY; TO AUTHORIZE THE ANNUAL GROWTH LIMITATION ON ALL EMPLOYMENT POSITIONS TO BE EXCEEDED ONLY AFTER THE ADOPTION OF A CONCURRENT RESOLUTION BY A 2/3 VOTE OF THE LEGISLATURE; TO AMEND SECTION 25-9-107, MISSISSIPPI CODE OF 1972, TO REQUIRE THE STATE PERSONNEL DIRECTOR TO DISAPPROVE CONTRACTS BY STATE AGENCIES FOR PERSONAL OR PROFESSIONAL SERVICES WHERE THE SERVICES TO BE PROVIDED ARE NORMALLY PERFORMED BY AN EMPLOYEE THAT THE AGENCY IS UNABLE TO EMPLOY BECAUSE OF THE LIMITATION ON THE NUMBER OR THE ANNUAL GROWTH OF EMPLOYMENT POSITIONS UNDER THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) The State Economist appointed by the Director of the University Research Center shall provide the Governor's Office and the Legislative Budget Office with a preliminary expenditure growth limit percentage for each fiscal year by September 1 immediately preceding the fiscal year, and provide a final expenditure growth limit percentage for each fiscal year by January 1 immediately preceding the fiscal year. The expenditure growth limit percentage shall be used in determining the limitation on the annual growth in the proposed budgets of the Joint Legislative Budget Committee and the Governor under Sections 27-103-125 and 27-103-139, and the limitation on the annual growth in the total sum appropriated by the Legislature from the General Fund under Section 27-103-211.

(2) The expenditure growth limit percentage for a fiscal year shall be the greater of (a) the average of the annual percentage change in the United States inflation rate, or (b) the average of the annual percentage change in state total personal income, for the three (3) calendar years ending immediately preceding the beginning of the fiscal year. The figures used in calculating these three-year averages shall be determined as provided in subsections (3) and (4) of this section.

(3) The United States inflation rate for a calendar year shall be the United States Consumer Price Index for the calendar year for all urban consumers as calculated by the Bureau of Labor Statistics of the United States Department of Commerce. In cases in which the United States Consumer Price Index for a calendar year has not yet been published before the dates specified in subsection (1) of this section, the University Research Center shall estimate the inflation rate for that calendar year, and this estimate shall be used in calculating the three-year average under subsection (2) of this section.

(4) The state total personal income for a calendar year shall be determined by the State Economist from available published total personal income estimates for the calendar year as provided by the Bureau of Economic Analysis of the United States Department of Commerce. In cases in which the total personal income estimates from this source for a calendar year have not yet been published before the dates specified in subsection (1) of this section, the University Research Center shall estimate the state total personal income for that calendar year, and this estimate shall be used in calculating the three-year average under subsection (2) of this section.

SECTION 2. Section 27-103-125, Mississippi Code of 1972, is amended as follows:

27-103-125. The proposed budget of each state agency shall show the amounts required for operating expenses separately from the amounts required for permanent improvements. The overall budget shall show, separately by each source, the estimated amount of General Fund revenue and of special fund revenues of General Fund agencies. The total proposed expenditures in Part 1 of the overall budget shall not exceed the amount of estimated revenues which will be available in the General and special funds for appropriation or use during the succeeding fiscal year, including any balances which will be on hand in the General and special funds at the close of the then current fiscal year. Beginning with the budget for fiscal year 1994, the total proposed expenditures from the General Fund in Part 1 of the overall budget shall not exceed ninety-eight percent (98%) of the amount of General Fund revenue estimate for the succeeding fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. In addition, beginning with the budget for fiscal year 1999, the total proposed expenditures from the General Fund in Part 1 of the overall budget for any fiscal year shall not exceed the total sum appropriated by the Legislature from the General Fund for the immediately preceding fiscal year by a percentage that is higher than the expenditure growth limit percentage provided by the State Economist under Section 1 of this act. The General Fund revenue estimate shall be the estimate jointly adopted by the Governor and the Joint Legislative Budget Committee. Unencumbered balances in general funds that will be available and on hand at the close of the current fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund and the Education Enhancement Fund pursuant to Section 27-103-203. The Legislative Budget Office may recommend additional taxes or sources of revenue if in its judgment such additional funds are necessary to adequately support the functions of the State Government.

SECTION 3. Section 27-103-139, Mississippi Code of 1972, is amended as follows:

27-103-139. On or before November 15 preceding each regular session of the Legislature, except the first regular session of a new term of office, the Governor shall submit to the members of the Legislature, the Legislative Budget Office or the members-elect, as the case may be, and to the executive head of each state agency a balanced budget for the succeeding fiscal year. Beginning with the 1996 fiscal year, the budget submitted shall be prepared in a format which will include performance measurement data associated with the various programs operated by each agency. The total proposed expenditures in the balanced budget shall not exceed the amount of estimated revenues that will be available for appropriation or use during the succeeding fiscal year, including any balances that will be on hand at the close of the then current fiscal year, as determined by the revenue estimate jointly adopted by the Governor and the Legislative Budget Committee. Beginning with the budget for fiscal year 1994, the total proposed expenditures from the General Fund in the balanced budget shall not exceed ninety-eight percent (98%) of the amount of General Fund revenue estimate for the succeeding fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. In addition, beginning with the budget for fiscal year 1999, the total proposed expenditures from the General Fund in the balanced budget for any fiscal year shall not exceed the total sum appropriated by the Legislature from the General Fund for the immediately preceding fiscal year by a percentage that is higher than the expenditure growth limit percentage provided by the State Economist under Section 1 of this act. The General Fund revenue estimate shall be the estimate jointly adopted by the Governor and the Joint Legislative Budget Committee. Unencumbered balances in general funds that will be available and on hand at the close of the fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund and the Education Enhancement Fund pursuant to Section 27-103-203.

The revenues used in preparing the balanced budget shall be only those revenues that will be available under the general laws of the state as they exist when the balanced budget is prepared, and shall not include any proposed revenues that would become available only after the enactment of new legislation. If the Governor has any recommendations for additional proposed expenditures or proposed revenues that are not included in his balanced budget, he shall submit those recommendations in a supplement that is separate from his balanced budget, and whenever the Governor recommends any such additional proposed expenditures, he also shall recommend proposed revenues that are sufficient to fund the additional proposed expenditures, providing specific details regarding the sources and the total amount of those proposed revenues.

The Governor may employ a budget officer for the purpose of receiving information from the State Fiscal Officer and preparing his recommendations on the budget. In the event the Governor determines that information received from the State Fiscal Officer is not sufficient to enable him to prepare his budget recommendations, he may request an appropriation from the Legislature to provide additional staff within the Governor's Office for such purpose. At the first regular session after his election for Governor, the Governor shall submit any budget recommendations plus the required revenue source recommendations no later than January 31 of such year. The Governor shall work with the Legislative Budget Office to design a format whereby the legislative and executive budget recommendations can be published as one (1) report. The recommendations shall be published together in one (1) report beginning with the recommendations for the fiscal year beginning July 1, 1987.

SECTION 4. Section 27-103-211, Mississippi Code of 1972, is amended as follows:

27-103-211. Beginning with the appropriations for fiscal year 1994, the total sum appropriated by the Legislature from the State General Fund for any fiscal year shall not exceed ninety-eight percent (98%) of the General Fund revenue estimate for that fiscal year developed by the Tax Commission and the University Research Center and adopted by the Joint Legislative Budget Committee, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. The unencumbered balances in general funds that will be available and on hand at the close of the fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund or the Education Enhancement Fund pursuant to Section 27-103-203(1).

(2) In addition to the requirements of subsection (1) of this section, beginning with the appropriations for fiscal year 1999, the total sum appropriated by the Legislature from the General Fund for any fiscal year shall not exceed the total sum appropriated by the Legislature from the General Fund for the immediately preceding fiscal year by a percentage that is higher than the expenditure growth limit percentage provided by the State Economist under Section 1 of this act. The limitation on the annual growth in the total sum appropriated from the General Fund for any fiscal year may be exceeded only if the Legislature first adopts a concurrent resolution by an affirmative vote of two-thirds (2/3) of the elected membership of each house of the Legislature authorizing the limitation to be exceeded. In authorizing the limitation to be exceeded, the resolution also may specify conditions or restrictions on the manner in which the limitation may be exceeded, including, but not limited to, specifying the total sum or maximum percentage by which the limitation may be exceeded in all appropriations, or naming individual state agencies for which the limitation may be exceeded, which may also include the total sum or the maximum percentage increase by which the limitation may be exceeded for each named state agency.

SECTION 5. (1) In the appropriations for fiscal years 1999, 2000 and 2001, the number of state service employment positions authorized in the appropriation for each state agency shall not exceed the number of state service employment positions authorized in the appropriation for that state agency for fiscal year 1998. For each fiscal year after fiscal year 2001, the total number of state service employment positions authorized in all appropriations for the fiscal year shall not exceed the total number of state service employment positions authorized in all appropriations for the immediately preceding fiscal year by a percentage that is higher than (a) the average of the annual percentage change in the state population for the three (3) calendar years immediately preceding the fiscal year, or (b) one percent (1%), whichever is greater. For the purposes of this section, the term "state agency" shall be defined as provided in Section 27-103-103, and the term "state service" shall be defined as provided in Section 25-9-107.

(2) The state population for a calendar year shall be determined by the State Economist from available published population estimates for the calendar year as provided by the Population Estimates Branch, United States Bureau of the Census. In cases in which population estimates from this source for a calendar year have not yet been published at the time they are needed for the calculation under subsection (1) of this section, the University Research Center shall estimate the state population for the calendar year, and this estimate shall be used in making the calculation under subsection (1) of this section.

(3) (a) For fiscal years 1999, 2000 and 2001, the limitation on the number of state service employment positions in the appropriation for each state agency that is provided for in subsection (1) of this section may be exceeded for any individual state agency only by an affirmative vote of two-thirds (2/3) of the elected membership of each house of the Legislature on the appropriation bill or bills for that state agency authorizing a number of state service employment positions that exceeds the number of state service employment positions authorized for that state agency in the appropriation bill or bills for fiscal year 1998.

(b) For each fiscal year after fiscal year 2001, the limitation on the annual growth in the total number of state service employment positions authorized in all appropriations provided for in subsection (1) of this section may be exceeded only if the Legislature first adopts a concurrent resolution by an affirmative vote of two-thirds (2/3) of the elected membership of each house of the Legislature authorizing the limitation to be exceeded. In authorizing the limitation to be exceeded, the resolution also may specify conditions or restrictions on the manner in which the limitation may be exceeded, including, but not limited to, specifying the total number of or the percentage increase in employment positions exceeding the limitation that may be authorized in the appropriations, or naming individual state agencies for which the limitation may be exceeded, which may also include the number of or the percentage increase in employment positions exceeding the limitation that may be authorized in the appropriation for each named state agency.

SECTION 6. Section 25-9-107, Mississippi Code of 1972, is amended as follows:

25-9-107. The following terms, when used in this chapter, unless a different meaning is plainly required by the context, shall have the following meanings:

(a) "Board" shall mean the State Personnel Board created under the provisions of this chapter.

(b) "State service" shall mean all employees of state departments, agencies and institutions as defined herein, except those officers and employees excluded by this chapter.

(c) "Nonstate service" shall mean the following officers and employees excluded from the state service by this chapter. The following are excluded from the state service:

(i) Members of the State Legislature, their staffs and other employees of the legislative branch;

(ii) The Governor and staff members of the immediate Office of the Governor;

(iii) Justices and judges of the judicial branch or members of appeals boards on a per diem basis;

(iv) The Lieutenant Governor, staff members of the immediate Office of the Lieutenant Governor and officers and employees directly appointed by the Lieutenant Governor;

(v) Officers and officials elected by popular vote and persons appointed to fill vacancies in elective offices;

(vi) Members of boards and commissioners appointed by the Governor, Lieutenant Governor or the State Legislature;

(vii) All academic officials, members of the teaching staffs and employees of the state institutions of higher learning, the State Board for Community and Junior Colleges, and community and junior colleges;

(viii) Officers and enlisted members of the National Guard of the state;

(ix) Prisoners, inmates, student or patient help working in or about institutions;

(x) Contract personnel; provided, that any agency which employs state service employees may enter into contracts for personal and professional services only with the prior written approval of the State Personnel Director. The State Personnel Director shall disapprove such contracts where the services to be provided could reasonably be performed by an employee in an authorized employment position. The State Personnel Director also shall disapprove such contracts where the services to be provided are normally performed by an employee that the agency is unable to employ because of the limitation on the number or the annual growth of state service employment positions under Section 5 of this act. Prior to paying any warrant for such contractual services, the State Fiscal Officer shall determine whether the contract involved was for personal or professional services, and, if so, shall determine whether it was properly submitted to the State Personnel Director and approved; provided, however, that physicians, dentists, architects, engineers, veterinarians, attorneys and utility rate experts who are employed for the purposes of professional services, and other specialized technical services related to facilities maintenance, shall be excluded from the provisions of this paragraph;

(xi) Part-time employees; provided, however, part-time employees shall only be hired into authorized employment positions classified by the board, shall meet minimum qualifications as set by the board, and shall be paid in accordance with the Variable Compensation Plan as certified by the board;

(xii) Persons appointed on an emergency basis for the duration of the emergency; the effective date of the emergency appointments shall not be earlier than the date approved by the State Personnel Director, and shall be limited to thirty (30) working days. Emergency appointments may be extended to sixty (60) working days by the State Personnel Board;

(xiii) Physicians, dentists, veterinarians, nurse practitioners and attorneys, while serving in their professional capacities in authorized employment positions who are required by statute to be licensed, registered or otherwise certified as such, provided that the State Personnel Director shall verify that the statutory qualifications are met prior to issuance of a payroll warrant by the Auditor;

(xiv) Personnel who are employed and paid from funds received from a federal grant program which has been approved by the Legislature or the Department of Finance and Administration whose length of employment has been determined to be time-limited in nature. This subparagraph shall apply to personnel employed under the provisions of the Comprehensive Employment and Training Act of 1973, as amended, and other special federal grant programs which are not a part of regular federally funded programs wherein appropriations and employment positions are appropriated by the Legislature. Such employees shall be paid in accordance with the Variable Compensation Plan and shall meet all qualifications required by federal statutes or by the Mississippi Classification Plan;

(xv) The administrative head who is in charge of any state department, agency, institution, board or commission, wherein the statute specifically authorizes the Governor, board, commission or other authority to appoint said administrative head; provided, however, that the salary of such administrative head shall be determined by the State Personnel Board in accordance with the Variable Compensation Plan unless otherwise fixed by statute;

(xvi) The State Personnel Board shall exclude top level positions if the incumbents determine and publicly advocate substantive program policy and report directly to the agency head, or the incumbents are required to maintain a direct confidential working relationship with a key excluded official. Provided further, a written job classification shall be approved by the board for each such position, and positions so excluded shall be paid in conformity with the Variable Compensation Plan;

(xvii) Employees whose employment is solely in connection with an agency's contract to produce, store or transport goods, and whose compensation is derived therefrom;

(xviii) Personnel employed by the State Prison Emergency Construction and Management Board, paid from funds from the "Correctional Facilities Emergency Construction Fund," or employed under contracts let or approved by the board for the construction, acquisition, lease, lease-purchase or operation of prison facilities. This subparagraph shall stand repealed from and after July 1, 1996;

(xix) The associate director, deputy directors and bureau directors within the Department of Agriculture and Commerce.

(d) "Agency" means any state board, commission, committee, council, department or unit thereof created by the Constitution or statutes if such board, commission, committee, council, department, unit or the head thereof, is authorized to appoint subordinate staff by the Constitution or statute, except a legislative or judicial board, commission, committee, council, department or unit thereof.

SECTION 7. This act shall take effect and be in force from and after July 1, 1997.