This publication reviewed the federal grant-in-aid system, its effects on the state in regard to policy and revenue, and specifically the increase of Mississippi’s oversight of federal aid distributed to state agencies.
The various forms of federal aid to the states were detailed in the first section. It was noted that Mississippi state government, along with Tennessee, ranked seventh among the ten state governments relying most on federal funds as a percentage of total revenue. The second section discussed the roles of the governors and the state legislatures in the distribution of federal funds. The final section of the report dealt with current oversight procedures of federal funds in the state.
To correct weaknesses identified in the report and to increase both executive and legislative oversight, PEER recommended that a new division be created within the Commission of Budget and Accounting to review all applications for federal funds and make recommendations to the commission, to monitor and keep records of federal funds distributed to state agencies, and to perform fiscal and program audits of federal programs when requested by the Legislature. Additional PEER recommendations were outlined in the report.
For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.