Mississippi Audit Reveals $335 Million in Wasteful Expenditures
An audit conducted in Mississippi has uncovered millions of dollars in recurring waste within the state’s major agencies, as reported by State Auditor Shad White.
Known as Mississippi’s “Project Momentum,” this audit is the most extensive of its kind in decades for the state.
Revealing up to $335 million in recurring waste across 13 state agencies, the audit follows smaller audits from the past five years that highlighted opportunities for saving tens of millions of dollars. State Auditor Shad White emphasized the importance of this project, aligning it with the federal government’s initiatives proposed by former President Donald Trump.
During a recent speech at the Economic Club of New York, Trump discussed the establishment of a government efficiency commission, with Elon Musk set to lead the agency. Drawing parallels to this effort, White stated, “We’re doing the same thing right here in Mississippi with Project Momentum.”
Project Momentum’s findings pointed out lavish spending in various areas such as expensive IT contracts, unnecessary vehicles, state property insurance, underutilized state buildings, excess employees in agencies, and superfluous administrative costs in K–12 schools.
Concentrating on major agencies like the Division of Medicaid and the Departments of Education and Public Safety, White highlighted a collective spending of over $5 billion among these entities.
The audit also shed light on federal fraud cases and improper payments, which Trump estimated cost taxpayers hundreds of billions of dollars in 2022. While large fraud cases often grab headlines, White emphasized the importance of identifying wasteful spending that also impacts taxpayers significantly.
Areas for Improvement
The report identified four major areas that could benefit from improvement:
1. Operation of state government akin to a business utilizing best practices for a higher return on investment.
2. Emphasis on prevention and readiness for natural disasters, understanding that prevention is more cost-effective than post-event fixes.
3. Improved availability of data and technology for better decision-making within government operations, highlighting the need for updated technology.
4. Optimization of spending to obtain the best pricing and value for goods and services bought by the state annually.
Mississippi State Auditor Shad White. Mississippi Office of the State Auditor
Spending Cut Proposals
White highlighted procurement as a significant focus of the project, suggesting that all agencies could save money by sharing purchasing contracts for items like electronics, toiletries, and other essentials.
Comparing Mississippi’s annual spending of $25 million on travel, vehicles, and fuel to neighboring states like Louisiana, Iowa, and Arkansas, White stressed the need for cost-saving measures within state agencies.
Various saving opportunities were outlined within the Medicaid division, including the exclusion of ineligible individuals and transitioning long-term care patients to home-based settings for cost savings and improved care.
Other proposals included consolidating inspection teams within the Department of Public Safety and reevaluating spending allocation in education to prioritize classroom funding over administrative expenses.
Addressing the underutilization of state assets like golf courses and the state plane, White emphasized the necessity of rationalizing state investments for a leaner and more efficient government.
Describing the report as a roadmap for enhancing Mississippi’s state government, White stressed the importance of redirecting funds to critical areas that benefit residents.
