Delaware State Senate Republicans are seeking a 5 percent spending cut that would allow for transportation funding and raises for state employees.
The proposal came in a letter to Gov. Jack Markell.
The initiative would direct the heads of each state agency to reduce spending in their departments by 5 percent, “through legislation, executive order, or any other means necessary.”
Last year, GOP legislators called for a 2 percent spending cut, with proceeds used to move transportation salaries out of the trust fund. Neither Republican plan offered specifics on cuts.
Much of the state’s spending increases have come in higher Medicaid costs. State employee health care costs have also risen, with the current budget adding funds in an attempt to plug a portion of a $60 million shortfall.
While Maryland and Pennsylvania have raised their fuel taxes to fund roads, legislators and residents have dug in their heels on paying more at the pump, even though gas prices are more than $1 a gallon below a year ago.
“Throughout this legislative session, the governor has urged state lawmakers to come to him with ideas on how to address this year’s significant budget challenges and how to pay for improvements to Delaware’s roads,” said Senate Republican Leader Gary Simpson, R-Milford. “Well, this is our idea, and we look forward to getting to work immediately with the governor to iron out the details. We can’t keep going back to Delaware families and businesses to fix our problems. We’re committed to responsible government spending and we’re confident the governor feels the same way.”
Markell responded to the proposal by pointing to the size of the cut and its possible impact, according to a letter posted by DelawareOnline.com.
“To give you a sense of the magnitude of your proposal, $195 million in cuts is the equivalent of eliminating the Department of Safety and Homeland Security (including the State Police), DNREC, the Department of Labor, and the legislature’s budget. A cut of that magnitude could not be done without substantial personnel reductions,” Markell wrote in response to the senators letter.
Revenue estimates from the Delaware Economic and Financial Advisory Council fell by more than $45 million, according to a recent report. The state also gets a large amount of revenue from unclaimed property, with its collection practices coming under increasing fire in court.
At the same time, the state’s gaming industry is seeking relief from a sharp increase in the state’s share of revenues as it struggles from intense competition from Maryland and Pennsylvania.
In addition to funding transportation projects, the plan also includes salary increases for a state workforce that has not seen a significant pay raise in years.
State employees represent a sizable voting bloc in the state. Unlike many states, the state of Delaware funds social services, roads and a large chunk of education spending at the state level.
Republicans acknowledged in their letter that a 5 percent across-the-board reduction won’t be easy.
“Virtually every working family and every small business owner in Delaware has had to reduce their personal and business budgets by more than 5 percent over the last few years,” Senate Republicans said in their letter, “surely we can do the same.”
Markell wrote that since payroll costs account for about half of state spending 50 percent of the proposed reduction would amount to the loss of nearly 1,800 state jobs.
