SB2578

Establishes the Small Municipalities Federal Match Fund to provide matching funds for small Mississippi municipalities to draw down federal funds.

The bill creates the Small Municipalities Federal Match Fund in the State Treasury. This fund will provide matching funds to small municipalities with populations under 10,000 to draw down federal funds. The fund will use a 20% local to 80% federal match rate. The Department of Finance and Administration will disburse these funds and reimburse oversight costs up to 1.25% of the fund's total. The fund will not lapse into the State General Fund, and any earnings will be reinvested. The Department must report annually on fund usage and costs.