From NEMS360.com:

House and Senate leaders, trying to put together a budget, were hit Wednesday with disturbing news for the state.

First is that Gov. Haley Barbour’s Division of Medicaid says it has a $34 million deficit – even though there are only two weeks left in the fiscal year. Second is the announcement that the Transportation Commission says it is about to terminate all road construction projects.

The Transportation Commission reported it would terminate all construction contracts unless a budget is approved before midnight June 30.

Rep. Cecil Brown, D-Jackson, said Attorney General Jim Hood has told him that he would go to court to try to keep vital state services, such as prisons, operating in the event a budget is not passed. But Brown said there is probably no way to keep road construction on schedule if an agreement is not reached.

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