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

You cannot simply "write off and forget" an uncollectible student account in a way that erases the obligation. What you can do is move the bad debt to an allowance for doubtful accounts so it does not appear as an active asset on your balance sheet. The receivable remains on the books in some form. If the student later returns to school or the college finds a path to collect (judgment enforcement, refund offset, transcript hold), the obligation is still there to enforce.

For audit purposes, follow the framework from prior AG opinions (Bell and Trapp): accounting procedures may be utilized to move uncollectible debts to a special category on the books so that they do not show up in yearly audits as "assets," but the obligation remains.

For community college attorneys

If your client is asking for authority to forgive student debt outright, the answer is that current Mississippi law does not allow it for public community colleges. The path to obtain that authority runs through the Legislature, using the Section 100 carve-out for "compromise of doubtful claims." Without legislation, the college needs to keep the obligation alive on its books.

For collection strategy, the practical levers are transcript holds, refund offset against state income tax (where authorized), assignment to a collection agency, and judgment enforcement. None of those extinguishes the obligation; they pursue it.

For community college trustees

Plan around the constraint. Boards sometimes look at large uncollectible balances and want to clean them off the balance sheet for clarity. The constitution does not let you do that for public-college receivables. Get audit treatment that acknowledges the doubtful-account allowance, communicate with the state auditor, and keep the receivables alive. If the board wants forgiveness as a policy, lobby the Legislature for compromise authority.

For the State Auditor

This opinion reinforces the "doubtful account allowance" framework that has been used at the county level for decades. Community colleges should be using the same practice. Watch for any college trying to permanently extinguish accounts in violation of Section 100, since that is unlawful.

For state legislators

If you want to give community colleges authority to compromise or forgive doubtful claims (for example, when collecting a small balance is more expensive than the balance itself), Section 100 lets you authorize it by general law. The current statutory landscape does not include that authority for community colleges, and the AG opinion makes clear the constitutional path is open.

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 send the debt to collections?
Yes. Sending the debt to a third-party collector, getting a judgment, garnishing wages, or holding transcripts does not extinguish the obligation. It pursues it.

Can the college accept partial payment as full satisfaction?
That looks like compromise, which Section 100 reserves for the Legislature to authorize by general law. Without explicit statutory authority, accepting less than full payment as final satisfaction may run into Section 100 problems. Consult counsel and consider Section 100's "compromise of doubtful claims" carve-out before accepting reduced settlements.

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
1. 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.
2. 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."