Can a Mississippi public community college write off and permanently extinguish uncollectible student accounts receivable, or does the state constitution forbid that?

Plain-English summary

The attorney for the Mississippi Gulf Coast Community College District asked whether the college could write off uncollectible student accounts receivable and remove them from college financial records altogether. The AG said no.

Article IV, Section 100 of the Mississippi Constitution is the controlling text:

No obligation or liability of any person, association, or corporation held or owned by this state, or levee board, or any county, city, or town thereof, shall ever be remitted, released or postponed, or in any way diminished by the Legislature, nor shall such liability or obligation be extinguished except by payment thereof into the proper treasury . . . but this shall not be construed to prevent the Legislature from providing by general law for the compromise of doubtful claims.

A public community college district is a "politic and corporate body" composed of multiple counties under Section 37-29-31. That puts it within the reach of Section 100. The constitution forbids the college from permanently extinguishing the obligation. Accounting practice (moving bad debt into a doubtful-account category so it does not show as an asset on audits) is allowed, but the underlying obligation persists. The AG cited two prior opinions on the county side (Bell, Sept. 6, 1996, and Trapp, June 20, 2003) that reach the same conclusion for counties.

The fix, if the college wants the legal authority to extinguish, is legislative. Section 100 expressly allows the Legislature to "provid[e] by general law for the compromise of doubtful claims." So a state statute could authorize compromise. Without that statute, the college's hands are tied.

The AG also cited Mayor Butler v. Watson, 338 So. 3d 599, 615 (Miss. 2021), which held part of Article XV, Section 273 (the citizen initiative provision) invalid. That citation appears as a related constitutional caveat in the analysis.

What this means for you

For community college business officers and CFOs

The opinion holds that a Mississippi public community college may not fully and permanently extinguish student accounts receivable deemed uncollectible and remove them as obligations from college financial records. Citing its prior Trapp opinion, the AG noted that accounting procedures may be used "to move uncollectible debts to a special category on the [college's] books" so that they "do not show up in the yearly audits as 'assets'," but the underlying obligation remains.

For community college attorneys

The opinion holds that current Mississippi law does not authorize a public community college to forgive or permanently extinguish uncollectible student debt, because Article IV, Section 100 prohibits it. The AG further held that, to obtain that authority, "new legislative action would be required," and noted that Section 100 does allow the Legislature to "provid[e] by general law for the compromise of doubtful claims."

For community college trustees

The opinion holds that the constitutional bar in Section 100 applies to a community college district because it is a politic and corporate body composed of counties under Section 37-29-31. The receivables cannot be permanently extinguished by the college; only the Legislature can open a compromise path by general law.

For state legislators

The opinion holds that, because permanent extinguishment of uncollectible balances is prohibited by the constitution, "new legislative action would be required," and that Section 100's "compromise of doubtful claims" clause is the constitutional route by which the Legislature could authorize compromise by general law.

Common questions

Why does Article IV, Section 100 of the Mississippi Constitution apply to a community college?
A community college district is a "politic and corporate body" composed of counties under Section 37-29-31. Section 100 applies to obligations "held or owned by this state, or levee board, or any county, city, or town thereof." County-composed districts fall within that universe. The AG has repeatedly applied Section 100 to county debts in prior opinions (Bell, Trapp).

Can the college just remove the debt from its records?
Not permanently. The opinion holds the college may not extinguish the obligation and remove it as an obligation from college financial records. Per the AG's Trapp opinion, accounting procedures may move the debt to a special category so it does not show as an "asset" in yearly audits, but the obligation itself remains.

Can the college accept partial payment as full satisfaction?
The opinion does not address partial-payment settlements directly. It holds that Section 100 bars diminishing or extinguishing the obligation except by payment, and reserves "compromise of doubtful claims" to the Legislature to authorize by general law.

What does it mean to move the debt to a "special category" on the books?
The AG has long allowed allowance-for-doubtful-accounts accounting. The receivable stays in the records but is offset by a contra-asset reserve so it does not inflate reported assets. The obligation still exists; the balance sheet just reflects the realistic collectibility. See AG Op., Trapp.

If the Legislature passes a general compromise law, can the college then forgive uncollectibles?
Yes. Section 100 expressly allows the Legislature to provide for the compromise of doubtful claims by general law. The Legislature has done that for some categories of debt; for community college student receivables, it would need a specific statute.

Background and statutory framework

Article IV, Section 100 of the Mississippi Constitution:

No obligation or liability of any person, association, or corporation held or owned by this state, or levee board, or any county, city, or town thereof, shall ever be remitted, released or postponed, or in any way diminished by the Legislature, nor shall such liability or obligation be extinguished except by payment thereof into the proper treasury; nor shall such liability or obligation be exchanged or transferred except upon payment of its face value; but this shall not be construed to prevent the Legislature from providing by general law for the compromise of doubtful claims.

The clause is broad: no remittal, release, postponement, or diminishment by the Legislature, and no extinguishment except by payment. The lone exception is compromise authority, which the Legislature can exercise by general law.

Section 37-29-31 establishes that a community college district is a politic and corporate body composed of various counties. That brings the college within the reach of Section 100.

Two prior AG opinions apply Section 100 to counties: Bell (Sept. 6, 1996) ("Article [IV], Section 100 of the Mississippi Constitution of 1890 clearly prohibits a county from forgiving uncollectible debts.") and Trapp (June 20, 2003) (allowing accounting procedures to move uncollectible debts to a special category so they do not appear as assets in yearly audits).

The AG noted in passing that part of Article XV, Section 273 was held invalid in part by Mayor Butler v. Watson, 338 So. 3d 599, 615 (Miss. 2021). That citation appears in a footnote-style aside about the constitutional landscape; it does not change the Section 100 analysis.

Section 100's "compromise of doubtful claims" carve-out remains the legislative path if the policy goal is to allow forgiveness.

Citations

• Miss. Const. art. IV, § 100 (no remission, release, or extinguishment of obligations except by payment; compromise of doubtful claims allowed by general law)
• Miss. Code Ann. § 37-29-31 (community college district as politic and corporate body)
• Miss. Const. art. XV, § 273 (held invalid in part by Mayor Butler v. Watson, 338 So. 3d 599, 615 (Miss. 2021))

Source

• Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
• Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2025/04/H.-Holleman-April-30-2025-Uncollectible-Student-Accounts.pdf

Original opinion text

April 30, 2025
Mr. Hollis T. Holleman, Esq.
Attorney, Mississippi Gulf Coast Community College District
1720 23rd Avenue
Gulfport, Mississippi 39501
Re:

Uncollectible Student Accounts

Dear Mr. Holleman:
The Office of the Attorney General has received your request for an official opinion.
Questions Presented

1. Whether, under Article IV, Section 100 of the Mississippi Constitution, and in
   consideration of MS AG Op., Bell (Sept. 6, 1996) and MS AG Op., Trapp (June 20, 2003),
   a Mississippi public community college is authorized to fully and permanently extinguish
   student accounts receivable balances deemed uncollectible, thereby removing them as
   obligations from college financial records?
2. If the answer to the above question is no, does existing Mississippi statutory law provide
   any current legislative mechanism or authorization for the college to achieve permanent
   removal of those uncollectible obligations, or would new legislative action be required?
   Brief Response
3. Pursuant to Article IV, Section 100 of the Mississippi Constitution, a Mississippi public
   community college may not fully and permanently extinguish student accounts receivable
   balances deemed uncollectible.
4. Because the permanent extinguishment of balances deemed uncollectible is prohibited by
   the Mississippi Constitution, new legislative action would be required.
   Applicable Law and Discussion
   Article IV, Section 100 of the Mississippi Constitution states:

No obligation or liability of any person, association, or corporation held or owned
by this state, or levee board, or any county, city, or town thereof, shall ever be
remitted, released or postponed, or in any way diminished by the Legislature, nor
shall such liability or obligation be extinguished except by payment thereof into the
proper treasury; nor shall such liability or obligation be exchanged or transferred
except upon payment of its face value; but this shall not be construed to prevent the
Legislature from providing by general law for the compromise of doubtful claims.

(emphasis added). A Mississippi public community college district is a politic and corporate body
comprised of various counties. See Miss. Code Ann. § 37-29-31. Accordingly, Article IV, Section
100 of the Mississippi Constitution prohibits a Mississippi public community college from fully
and permanently extinguishing student accounts receivable balances deemed uncollectible and
removing them as obligations from college financial records. See also MS AG Op., Bell at 1
("Article [IV], Section 100 of the Mississippi Constitution of 1890 clearly prohibits a county from
forgiving uncollectible debts."); MS AG Op., Trapp at 1 (stating same and highlighting that
accounting procedures may be utilized "to move uncollectible debts to a special category on the
county's books" so that they "do not show up in the yearly audits as 'assets'").
You next ask if existing Mississippi statutory law provides any current legislative mechanism or
authorization for the college to achieve permanent removal of those uncollectible obligations or if
new legislative action would be required. Because the permanent extinguishment of balances
deemed uncollectible is prohibited by the Mississippi Constitution, new legislative action would
be required.[1] See MISS. CONST., art. XV § 273 (held invalid in part by Initiative Measure No. 65:
Mayor Butler v. Watson, 338 So. 3d 599, 615 (Miss. 2021)).
If this office may be of any further assistance to you, please do not hesitate to contact us.
Sincerely,
LYNN FITCH, ATTORNEY GENERAL
By:

/s/ Maggie Kate Bobo
Maggie Kate Bobo
Special Assistant Attorney General

[1] We note that, as shown supra, Article IV, Section 100, does allow the Legislature to "provid[e]
by general law for the compromise of doubtful claims."