Gov. Jack Markell’s (D-Delaware) final budget plan released Thursday would decrease funding all three First State counties receive for paramedic services, and cut the income they receive from realty transfer taxes.
Markell’s plan calls for eliminating funds the state contributes for county paramedics and cutting the share of realty transfer taxes counties receive.
Right now, the state pays 30 percent of the paramedic service tax, and counties pay 70 percent. If approved, the changes would force counties to pay the tax in full, saving the state an estimated $10.8 million.
Additionally, Markell wants to increase the state’s realty transfer tax from 3 to 4 percent, with the additional percent increasing going just to the state. On top of that, they want to reduce the percentage the counties receive of the original 3 percent from 1.5% to 1.25%, saving the state another $11 million.
New Castle County Executive Matt Meyer says the county relies on those dollars for vital public safety services - including paramedic costs that have tripled since 2004 to $4.8 million last year.
“The message for me is that we can’t – with increasing pressures on our paramedics service – we don’t want to let them down," Meyer said. "That’s a critical function of government that we should not be playing with.”
He argued strongly the state shouldn’t balance its budget on the backs of first responders.
Meyer added 94 percent of New Castle County’s incoming realty transfer tax revenue is spent on public safety: including police, paramedics, 911 call centers and grants to fire companies.
“Any cut to our transfer tax is effectively a cut to public safety operations which are pretty vital to our county," Meyer said.
Sussex County Finance Director Gina Jennings says 65% of realty transfer taxes there go to public safety, but adds it’s unclear what impact changes to that tax may have. Sussex doesn’t have its own force and pays the state $2.2 million for 44 state police officers.
Jennings estimates Markell’s plan could cost Sussex $8 million, but like Meyer, says the discussion is just beginning.
I’m very hopeful that that conversation is going to continue and that we won’t see an $8 million cut when it comes down to it on June 30," Jennings said. "I do appreciate the state is having us at the table.”
