Governor proposes $3.9 billion budget

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Gov. Jack Markell proposed a $3.9 billion state budget for fiscal 2016 that adds funding for schools and addiction treatment while slashing a property tax break for senior citizens.

“Our budget reflects our values,” said Markell. “We must ensure our children and grandchildren have the same kind of bright future that previous generations left behind for us, and that means concentrating our investments where they can have the most impact in creating economic opportunities for Delawareans.”

The budget was criticized by Republican legislators who pointed to growth in state spending.

Senate Republican Whip Greg Lavelle (Sharpley) said the budget, once again, exemplifies the Markell administration’s lackluster economic policies.

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“It continues to reflect an overall economy that’s not growing enough,” he said. “We have offered, on several occasions, numerous ideas to strengthen Delaware’s economy, through modifications in the prevailing wage and right-to-work laws that have succeeded in other states in attracting quality, high-paying jobs,” said Senate Minority leader Greg Lavelle in the caucus’ weekly newsletter.

Republicans have not rolled out an alternative budget, although the pick up of one seat in the Senate gives them more power in the budget-making process.

The Markell administration has previously pointed to a rate of job growth that exceeds the national figure, with GOP lawmakers pointing out weak revenue figurers from jobs that may pay less than those lost.

While the budget is certain to be the target of criticism from the business community and Republican legislators, Markell said that when adjusted for inflation and population growth, the size of government has decreased since he took office 2009.

The budget proposed an additional 186 teaching positions, due to population and public school enrollment growth, as well as salary step increases for school employees.

Markell also added $9.5 million in additional state funding based on feedback from teachers, principals, and other school leaders about the initiatives that are having the greatest impact in Delaware classrooms.

“We should be incredibly proud of the progress we’ve made in our schools,” said Markell. “Proficiency is up. More students are reaching their growth goals, and staying on track to graduate high school. The drop-out rate is at a 30-year low. And more students are earning college credit while in high school, and going on to attend and complete college. With the end of the Race to the Top grant, we have an opportunity to evaluate the investments we’ve made and use what we’ve learned about how to best support our students and educators going forward.”

Markell also proposed $4.5 million for substance abuse treatment programs, including a new detox center in Harrington, as well as more beds for sober living facilities.

The governor again proposed $7 million for downtown development districts, a program that got under way last year and $10 million for crane and other improvements at the Port of Wilmington.

 Other proposals included:

– $1 million for the Federal Research and Development Matching Grants, continuing an effort started last year to encourage innovation.

– $2.7 million to train offenders with jobs skills so they are more likely to contribute to their communities and less likely to reoffend when they are released. The budget invests $1.2 million for renovations to the cafeteria at the James T. Vaughn Correctional facility in Smyrna to support the Matt Haley Culinary Arts Program and $1.5 million for the Automotive Skills Facility at James T. Vaughn Correctional Facility.

– $3 million to continue the Governor’s efforts to improve quality of life through statewide trails and pathways.

– $5 million for libraries in Delmar, Lewes, Route 9/13, and Harrington.

In what may be the most controversial proposal, the governor proposed a cut in the senior property tax subsidry as more Delawareans become eligible for it upon reaching the age of 65.  By 2025, the population of Delawareans over the age of 65 is expected to top 21 percent, at a cost to the State of more than $46 million, compared to $8.7 million at the time the program launched in 2001 when seniors accounted for about 13 percent of the state’s population.
Markell proposed reducing by half the subsidy for those who qualify. Currently, property owners receive a subsidy of $500, or 50 percent of their school

The proposed Fiscal Year 2016 Recommended Bond and Capital Improvements Act totals $385.8 million and includes $246.8 million in State agency capital projects and $139.0 million in Transportation projects. The Governor also set aside $45.4 million for Grants-in-Aid.

A graphic proposal is available online at http://governor.delaware.gov/docs/FINAL_FY_2016_budget_presentation.pdf

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