Gov. Barbour asks state agencies for cost cutting plans - WLOX.com - The News for South Mississippi

Gov. Barbour asks state agencies for cost cutting plans

JACKSON, MS (WLOX) -

JACKSON, MS (WLOX) - Gov. Haley Barbour wants to know how state agency directors plan to cut costs in Fiscal Year 2012. Tuesday, he sent a letter asking the agencies to submit potential cost-cutting ideas by November 1.

A slow-to-recover economy combined with the loss of hundreds of million in federal stimulus funds will force spending to tighten further in FY 2012, which begins July 1, 2011.

The budget year will face a structural shortfall of at least $400 million. Initial estimates project a 10 to 15 percent budget reduction for agencies below FY 2011 levels.

"The global economic slowdown has forced private firms to operate more efficiently during a period of reduced revenue," Gov. Barbour said. "Government must also evaluate whether we are operating as efficiently and effectively as we could be. In the short term, this will allow us to weather the budgetary storm with minimal reductions in key services. In the long term, taxpayers will benefit from a right-sized government that does more with less."

Click here to read Gov. Barbour's letter to agency directors, or visit www.GovernorBarbour.com.

Copyright 2010 WLOX. All rights reserved.

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