Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

JFC delays decision on Gov. Markell's proposed cut of senior tax subsidy

Delaware Public Media

Lawmakers are leaving their options open when it comes to Gov. Jack Markell’s proposal to cut a senior property tax credit to help balance the state’s budget.

The budget writing Joint Finance Committee Thursday put a decision about using Markell’s controversial plan on hold indefinitely.  The plan calls for slicing senior citizen property tax subsidies in half to add just over $12 million to state coffers.

Currently, the state gives seniors school property tax subsidies of 50 percent, or $500, whichever is less.  Markell’s $3.9 billion budget proposal would cut that to 25 percent or $250.

Rep. James Johnson sits on the JFC.  He says administration officials offered a variety of alternatives to that plan, but the committee failed to reach a consensus on any.

“One was to grandfather in the people that are in it now and not to allow any new people to come in," said Johnson. "The second one was to decrease it from $500 to $300, up to $300.”

The plan has faced opposition from lawmakers on both sides of the aisle who say it puts a burden on older Delawareans on fixed incomes, but Johnson says the issue eventually must be addressed as the state’s population gets older.

“We know that sooner or late, even if we don’t do it this year, we’ll have to make some kind of decision to deal with the issue," said Johnson. "It’s a ballooning deficit we have when it comes to the senior citizens.”

Tom Byrne has been a fixture covering news in Delaware for three decades. He joined Delaware Public Media in 2010 as our first news director and has guided the news team ever since. When he's not covering the news, he can be found reading history or pursuing his love of all things athletic.
Related Content