District 92 Rep. Dr. Jim Barnett said Mississippi is in troublebut not alone in its financial woes.

“Misery likes company, and every other state is having problems,too,” Barnett said Wednesday while speaking to the BrookhavenKiwanis Club.

Barnett mentioned difficulties in Louisiana, Tennessee and otherstates. He attributed part of the problem to state governmentsbeing too large across the country.

“I know it’s too large in Mississippi,” Barnett said.

State lawmakers will begin tackling Mississippi’s budget woes,including an estimated $600 million to $700 million budget deficit,when they return to Jackson Jan. 4. They are scheduled to have a90-day session.

“We must live within our means,” Barnett said while touching ona variety of budget issues.

The lawmaker said state agencies have requested $1.2 billionmore in funding for their operations next year. He said the stateis looking at a $3.8 billion general fund budget as part of anoverall $10 billion budget.

Regarding budget priorities, Barnett expected lawmakers to fundeducation first.

“We’ve done that the last two years, and it’s worked,” Barnettsaid about the spending that accounts for about 52 percent of thegeneral fund. “We must do everything we can for education.”

There are major differences between a budget proposed by Gov.Haley Barbour and a Joint Legislative Budget Office plan introducedWednesday. One common ground is support for the fifth and finalyear of a teacher pay raise plan.

The plan will cost about $100 million. However, because otherstates have raised their teachers’ pay, the plan will not have thedesired effect of getting Mississippi to the Southeasternaverage.

“We’re not up to the southeastern average, but we’re a long wayfrom where we were five years ago,” Barnett said.

Following a contentious regular session and special sessionsthis year, Medicaid will remain a hot topic in 2005. Barnett saidthe agency has requested $110 million more for operations.

Barnett said federal law requires states to provide health careservices for senior citizens whose income is at 75 percent of thefederal poverty level.

Mississippi, on the other hand, provides services for those at135 percent of the federal poverty level. Barnett knew of no otherstate with that high a coverage level.

In the face of funding questions, Barnett acknowledged thepossibility of an attempt to change that system next year.

“I think it will be difficult, but we’re going to try,” hesaid.

In years past, Barnett said lawmakers routinely dispatched thegovernor’s budget proposal to the waste basket. For 2005, though,he indicated support for some of Barbour’s ideas, such as a 5percent cut for most state agencies.

“It’s going to be a different day this year,” Barnett said. “I’mvery impressed with what the governor has done.”

Barnett predicted there would be some service and personnelreductions made during the upcoming session.

“We’re going to have to do some cutting, and it’s going to makesome people unhappy,” Barnett said.