Negotiators set education funding levels for the still-developing state budget at $2.6 billion, approximately half of Mississippi's annual $5 billion budget. In the agreement, the Mississippi Adequate Education Program - a complex formula through which school districts receive the majority of state money - will be fully funded, and money will be set aside to pay annual salary supplements of $6,000 for national board certified teachers.

School administrators across the state have made only a few permanent decisions for the fiscal year beginning July 1, holding off on replacing retired and moving teachers and funding accessory programs for fear that education funding would not cover planned expenditures. Even though the full House and Senate could reject a completed budget when they return to a special session, local legislators say full funding for education will be a part of any compromise, and was never intended for reductions.

"That was pretty much a commitment early on by both chambers, the lieutenant governor and the governor's office," said District 39 Sen. Cindy Hyde-Smith, D-Brookhaven. "Education, to me, was decided early on. I don't think education was a big arguing point."

Hyde-Smith said the $6,000 supplement for NBC teachers was never in doubt, but many teachers around the state were alarmed when e-mails to the contrary began to circulate earlier this spring. Instead of cuts, Hyde-Smith pointed out the agreed-upon education funding levels are actually an increase over current levels.

"It's a slight increase... but the good thing is there's no decrease," she said. "In this budget year, I am very pleased with what we have."

District 92 Rep. Becky Currie, R-Brookhaven, cautioned that schools should take advantage of the high funding levels and prepare for next year, when state revenues are predicted to be even lower.

"I think districts should put some money aside for next year, because we never know where the next funding is gonna come from," she said. "We only get one stimulus package. I hope economic times change, but we don't know."

Currie said she hopes the high funding level will prevent school administrators from seeking an increase in millage rates this year.

"I think it would be the wrong thing during these economic times to add anything else onto the taxpayers of Lincoln County," she said. "You don't fix an economic crisis by raising taxes."

District 53 Rep. Bobby Moak, D-Bogue Chitto, agreed that education funding was pretty much a given for the Legislature this year, but further budget battles lie ahead. He said one of the most intense of those battles, however - a proposed hospital tax to help pay a $90 million shortfall in Medicaid - may be close to being resolved.

"When I left on Friday, the House was at $57 (million) and the Senate was at $60 (million)," Moak said. "The question is whether we need that other $30 (million) or not. We have agreed to take money out of the rainy day fund - not all, but some... and we're going to get additional money from several places."

Moak pointed to last week's $40 million settlement from Microsoft as a bonus source of one-time funding, and pointed to ongoing discussions of further increasing state tobacco taxes as another means of revenue. He said non-participating tobacco companies - those that make cheaper cigarettes, like Basics or Dorals - could be hit with a tax increase of around 20 cents per pack.

"A 20-cent tax could generate an additional $10 or $12 million," Moak said.

Mississippi's 18-cent excise tax on premium brand cigarettes was raised by 50 cents earlier this session. Moak said placing additional taxes on smokeless tobacco is also an option.