Mississippi Adopts $7.8 Billion Revenue Estimate
The Joint Legislative Budget Committee set the fiscal year 2028 estimate, leaving $266 million more for lawmakers to spend in 2027.
Updated on Nov. 4, 2026 in Legislative Policy
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The Mississippi Joint Legislative Budget Committee adopted a $7.8 billion revenue estimate for fiscal year 2028, which is $266 million, or 3.5%, above last year's estimate. The estimate was adopted alongside Gov. Tate Reeves and gives the Legislature additional room in the 2027 session.
Why it matters
The revenue estimate sets the ceiling for the budgets the Legislature and governor will write in the 2027 session. The extra $266 million comes as the Division of Medicaid requested about $179 million more than last year, adding pressure on state spending.
The adopted estimate of $7.8 billion is $266 million, or 3.5%, higher than last year's figure. The final allocation of the new funds has not yet been determined by the Legislature or governor.
The players
Tate Reeves
Tate Reeves is the Governor of Mississippi, who adopted the revenue estimate alongside the Joint Legislative Budget Committee.
Joint Legislative Budget Committee
The Joint Legislative Budget Committee is the Mississippi legislative body that adopted the $7.8 billion revenue estimate for fiscal year 2028.
Division of Medicaid
The Division of Medicaid is the Mississippi state agency that requested about $179 million more than last year, a request that adds pressure to the budget.
The details
The estimate is based on tax collections to date and current state and national economic conditions. The Legislature and governor will each develop a proposed budget from this figure, and lawmakers will pass a final budget during the session.
Timeline
Fiscal year 2017: approximately $5.65 billion collected in state revenue.
2020 to 2023: state revenue collections rose about 24% during the COVID-19 pandemic.
2025: Mississippi voted to gradually eliminate the income tax.
July 1, 2026: the next fiscal year begins with the $7.8 billion estimate.
January 2027: the 2027 legislative session begins.
Legislative Policy Context
The estimate comes after Mississippi's 2025 vote to gradually eliminate the income tax, a shift that has moved the state's revenue base toward sales taxes, which are expected to make up around 40% of state revenue this year. Gov. Tate Reeves has cautioned that the slower decline in income tax collections will not continue.
The revenue estimate determines how much money is available for state services during the 2027 session. Mississippi residents will see the effects in the budget lawmakers pass for the fiscal year beginning July 1, 2026, including any changes to Medicaid and higher education funding.
The takeaway
A state's revenue estimate is the ceiling for every spending decision that follows, so the $266 million increase will shape the 2027 session. Watching how lawmakers allocate the new funds will show which pressures, such as Medicaid, take priority.
What happens next
The 2027 legislative session begins in January 2027, when the Legislature and governor will use the $7.8 billion estimate to build and pass the state budget.
Further reading
For related coverage of how lawmakers shape state spending, see Legislative Policy in Mississippi.
Source note: This article includes information reported by Mississippi Today.
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