Good morning,
The Delaware Economic and Financial Advisory Council received some good news earlier this week when the second of two forecasts this fall showed a gain in anticipated revenue.
In all, about $50 million in additional revenue is forecast.
Already, the money is being eyed for the most worthy of causes, the needs of low-income children.
A coalition has proposed spending $55 million over four years on a variety of programs.
The proposal seems to be a bet that the economy will improve enough in the next four years to allow the funding to continue.
Not so fast. The state still faces a structural deficit that was papered over in last year’s budget.
The cuts that have been made over the years have affected those in the most desperate straits, with food pantries and emergency funds for individuals at the end of their financial rope among the victims.
A stronger case for the children’s program could be made if the $55 million became seed money for a trust fund that would provide a reliable source of funding year after year.
This is especially true during the next financial downturn or as we see more cuts at the federal level.
So far, legislators have been wary of revolving funds, perhaps knowing that the extra money will simply be too tempting to leave alone.
As always, your thoughts are welcome. Our newsletter returns tomorrow. – Doug Rainey, publisher.
