AN ACT TO AMEND SECTION 27-103-131, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF A STATE AGENCY REFUSES OR FAILS TO FILE AN ORIGINAL BUDGET REQUEST WITHIN THIRTY CALENDAR DAYS AFTER THE DEADLINE DATE FOR FILING BUDGET REQUESTS, THE DIRECTOR OF THE AGENCY SHALL CONTRACT WITH A THIRD PARTY TO PREPARE A BUDGET REQUEST FOR the AGENCY, WHICH MUST BE THREE PERCENT LOWER THAN THE AGENCY'S CURRENT BUDGET FROM STATE GENERAL FUNDS; TO REQUIRE THE CONTRACTOR TO PREPARE AND SUBMIT A BUDGET REQUEST FOR THE AGENCY TO THE LEGISLATIVE BUDGET OFFICE WITHIN THIRTY CALENDAR DAYS AFTER THE CONTRACT IS EXECUTED; IF THE CONTRACTOR DOES NOT SUBMIT THE AGENCY'S BUDGET REQUEST WITHIN THAT TIME, THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION SHALL NOT ALLOW THE AGENCY TO EXPEND ITS CURRENT FISCAL YEAR APPROPRIATION UNTIL THE BUDGET REQUEST HAS BEEN SUBMITTED; TO PROVIDE THAT THE AGENCY SHALL BE RESPONSIBLE FOR PAYING THE CONTRACTOR FOR PREPARING THE AGENCY'S BUDGET REQUEST; TO PROVIDE THAT IF THE AGENCY DOES NOT PAY THE CONTRACTOR WITHIN FORTY-FIVE CALENDAR DAYS, THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION SHALL NOT ALLOW THE AGENCY TO EXPEND ITS CURRENT FISCAL YEAR APPROPRIATION UNTIL THE CONTRACTOR HAS BEEN PAID; AND FOR RELATED PURPOSES.
SB 2577 amends Mississippi’s budget-request statute to create a penalty process for state agencies that fail to file an original budget request on time. If an agency misses the filing deadline by 30 calendar days, the agency director must contract with a third party to prepare and submit the budget request. The substitute request must be set at least 3% below the agency’s current state general-fund budget, and the director is exempted from otherwise applicable procurement procedures when hiring the contractor.
The bill also requires the agency to notify the Joint Legislative Budget Committee, the Legislative Budget Office, and the Department of Finance and Administration when the contract is executed, including the contract amount. The contractor must submit the budget request within 30 days, and if it does not, the Department of Finance and Administration must block the agency from spending its current-year appropriation until the request is filed. The agency is responsible for paying the contractor, and if it fails to pay within 45 days, the department must again withhold spending authority until payment is made. The bill further provides that a negligently prepared budget counts as a failure to file, and that the Joint Legislative Budget Committee may not recommend a budget higher than the reduced contractor-prepared amount for the next fiscal year.
The bill’s impact is to strengthen enforcement of budget-request deadlines and create direct fiscal consequences for noncompliance by state agencies and, in some cases, the officers or employees responsible for preparing the request. It would amend Section 27-103-131 of the Mississippi Code and expand the role of the Legislative Budget Office, the Joint Legislative Budget Committee, and the Department of Finance and Administration in monitoring and enforcing late filings. It also creates a mechanism that can effectively cap future budget recommendations based on the reduced contractor-prepared request.
The available context shows no recorded committee debate or votes, so there is no documented public sentiment in the provided materials. Based on the bill text alone, the measure appears designed to promote compliance and fiscal discipline, suggesting likely support from lawmakers favoring tighter budget controls and accountability. At the same time, the bill’s penalties, mandatory outside contracting, procurement exemption, and potential withholding of appropriations could be contentious for agencies concerned about administrative burden, loss of discretion, and the risk of operational disruption.
Notable points of contention are likely to include the 3% automatic reduction requirement, the authority to bypass normal procurement rules, and the sanctions that suspend an agency’s ability to spend appropriated funds if deadlines or payment obligations are missed. The provision making a negligently prepared budget equivalent to a failure to file may also raise concerns about how broadly the penalty could be applied and who would be held personally responsible for errors.
This bill would amend Mississippi Code Section 27-103-131 to impose a mandatory third-party budget-preparation process for state agencies that miss filing deadlines, require a reduced budget request, and authorize spending freezes for noncompliance. It affects state agencies, agency directors, the Legislative Budget Office, the Joint Legislative Budget Committee, and the Department of Finance and Administration by adding enforcement tools, reporting requirements, and fiscal penalties tied to budget-request submission and contractor payment.
No committee transcript or vote data were provided, so there is no recorded legislative sentiment in the supplied context. The bill text suggests a policy preference for strict compliance and budget discipline, which may appeal to supporters of stronger fiscal oversight. However, the enforcement mechanisms are severe enough that agencies and administrators could view the proposal as punitive or operationally risky.
The main points of contention are likely the mandatory 3% reduction in the substitute budget request, the exemption from procurement procedures for hiring the third party, and the authority to withhold an agency’s current-year appropriation if the contractor misses the deadline or the agency fails to pay. Another likely concern is the bill’s treatment of negligently prepared budgets as failures to file, which could broaden liability and create uncertainty about enforcement. Agencies may also object to the possibility that a late or deficient filing could constrain future budget recommendations below the contractor-prepared amount.