Mississippi Medicaid Seeks 15% Budget Boost Amid Deficit
Mississippi's Joint Legislative Budget Committee adopted a $7.8 billion revenue estimate for fiscal year 2027, a 3.5% increase driven by sales tax growth, wage gains and inflation. The Division of Medicaid requested about $179 million more than last year, a roughly 15% increase, as the agency faces a budget deficit. The Legislature and Governor Tate Reeves will each draft budget proposals based on the revenue estimate before the 2027 session convenes in January, with lawmakers also weighing requests from higher education and other agencies against limited new revenue growth. Mississippi's gradual elimination of its income tax, approved in 2025, adds long-term uncertainty to future state revenue even as officials remain optimistic about economic growth.