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Joint Finance Committee only scratches at surface of $75.3 million budget gap

Delaware Public Media

Those who were hoping to pounce on what initially looked like a more bountiful year for state government are most likely out of luck.

 

Monday’s state revenue forecast saw significant dips in personal and corporate income taxes.

 

Couple that with unexpected hikes next year to pay for Medicaid and other programs and lawmakers have $75.3 million less to use based on Gov. Jack Markell’s (D) proposal earlier this year.

 

“I have never seen a number that high when we were starting mark up. So it really does say this it’s a really, really challenging year,” said Sen. Harris McDowell (D-Wilmington North), co-chair of the Joint Finance Committee.

 

McDowell says everything – including a proposed one percent state employee pay raise – is on the table to be cut to create a balanced budget.

Though he also noted should both chambers approve of the Wilmington Education Improvement Commission redistricting plan, money to cover those costs would be available.

"It will not fail for lack of anything we need to do," McDowell said.

His co-chair, Rep. Melanie George Smith (D-Bear) was less enthusiastic, saying, "We’re going to let the 62 legislators upstairs make a determination on [the plan from the Wilmington Education Improvement Commission]."

The committee did little to attack the spending difference Wednesday, aside from cutting estimated fuel and electricity costs by $1.2 million.

Some Republican lawmakers attacked the slight declines in projected personal and corporate income taxes as signs of a slow economy.

Sen. Dave Lawson (R-Marydel) also criticized the budget process itself, which heavily relies on Markell's January proposal.

"Should we not consider starting where we ended last year and go up, instead of starting at the top and letting the air out of the balloon?"

McDowell agreed, suggesting JFC adopt that workflow next year.

 

Budget markup continues through next week, with JFC promising a finished budget by the beginning of June.