The Latest: Mississippi treasurer says budget 'unbalanced'


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JACKSON, Miss. (AP) — The Latest on the Mississippi budget (all times local):

3:33 p.m.

Mississippi Treasurer Lynn Fitch says it appears the state has an "unbalanced" budget for the year that begins July 1.

She says that worries her, and it could worry credit rating agencies, as well.

Lt. Gov. Tate Reeves and House Speaker Philip Gunn said Tuesday that "a staff error" caused legislators to overestimate how much money the state could collect during fiscal 2017, which begins July 1. It is a $56.8 million mistake.

Fitch says she will do what she can to protect the state's credit standing and to shield taxpayers from negative consequences of the budget.

In late April, the treasurer criticized legislators for passing a bond bill with projects she said could not meet minimum standards for the state to take on long-term debt.

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1:50 p.m.

Because of state budget cuts, Mississippi will lose all of its state-operated programs to help men break an addiction to drugs and alcohol.

The state Department of Mental Health says Tuesday that it will close two chemical dependency units for men — one with 42 beds at the Mississippi State Hospital at Whitfield and one with 25 beds at the East Mississippi State Hospital in Meridian. People needing the services will have to seek them from other health care providers.

Diana Mikula, the department's director, says other services will be reduced because of budget cuts.

South Mississippi State Hospital in Purvis will close five beds for people needing treatment for serious mental illness.

Ellisville State School will stop instruction for children from birth to age 3.

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12:23 p.m.

Mississippi legislative leaders say they overestimated how much money the state could collect during the coming budget year.

In a statement Tuesday, Lt. Gov. Tate Reeves and House Speaker Philip Gunn attribute the $56.8 million shortfall to a "staff error."

It is about a 1 percent mistake in a $5.8 billion general fund.

Republicans Reeves and Gunn say no immediate action is needed. They say the shortfall could disappear if tax collections exceed expectations the first half of fiscal 2017, from July through December.

Or, they say legislators could deal with the situation after their session begins in January. Budgets could be cut, or the state could pull money from its reserves.

Gov. Phil Bryant has made two rounds of cuts during the current budget year because of lagging revenues.

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