As we observe the birth of Jesus, all of us look forward to a prosperous New Year. One thing none of us looks forward to, however, is the credit card bill that arrives after the holidays.
As a state, Mississippi has a brighter future because we have been paying down our own “credit card,” the state’s debt.
In 2019, Mississippi’s General Obligation debt stood at $4.49 billion. Since 2020, we have not increased the total of these bonds. Instead, we have chosen to responsibly manage the state’s resources.
As a result, our General Obligation debt has been reduced to $3.77 billion, a payoff of $715 million. By the end of my term, that figure is projected to drop to an estimated $2.9 billion, a $1.58 billion payoff that represents a 35 percent reduction of our “credit card.”
What makes this achievement even more meaningful is what we have accomplished at the same time. Mississippi has lowered individual, grocery, and business taxes by over $1 billion per year. We have increased teacher pay and aim to do so again this year. We have also risen to 16th nationally in education. We have secured the long-term solvency of our retirement system and invested more than $2 billion annually in roads, bridges, and new infrastructure.
We are aware of no other state that has achieved all of this. Mississippi is leading the way.
What does this mean for you? It means tens of millions of dollars are no longer sent in interest payments to New York bond dealers. Instead, those dollars can be used to further reduce your tax burden, strengthen our schools, and improve our roads. It also means Mississippi maintains a strong credit rating, allowing us to borrow at lower rates when needed. Most importantly, we are not passing debt on to our children and grandchildren.
We still have challenges to address, including chronic absenteeism, attainable housing, and higher wages for our workforce. Even so, we are in a sound financial position to meet them.
So, Happy New Year, Mississippi. Never has our future been brighter.
