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April 11, 2008 at 9:58 am | Jennifer Roberts | News

Mississippi House and Senate members have agreed on a budget that relies once again on one-time funding, including a substantial chunk of money received from the U.S. government after Hurricane Katrina ravaged the Gulf Coast.

The hurricane relief monies will be used to fill Mississippi's "rainy day" fund and help pay for Medicaid services in the next fiscal year beginning July 1.

The $99 million shortfall Medicaid is faced with will be paid from mostly general fund dollars.

House Medicaid Committee Chairman Dirk Dedeaux remarked to reporters that he is "very disappointed" in Katrina money being used for these purposes. He and other Gulf Coast lawmakers have said publicly too much recovery work remains to be done to shift that money to other sources.

Though most state agencies will receive level funding in the 2009 budget, the departments of Human Services and Corrections will see increases.

Education takes a hit, however, as teachers across the state will not receive a 3 percent across-the-board raise. Tuition at statewide universities is also expected to rise.