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A pay raise for state employees and a $100 million boost for capital projects show how Delaware Governor John Carney’s spending plan is very different from last year’s bare-bones budget.
What a financial difference a year makes. Carney presented his second budget proposal to state lawmakers Thursday. Carney’s plan grows the budget by 3.49 percent. It includes a $1,000 pay raise for state employees, a two percent pay raise for public school teachers, and a big boost for the capital budget.
“I think the way to do it is to manage your budget in a reasonable, thoughtful, sustainable way,” said Carney, of his budget principles.
Last year, Carney called his budget a series of “really tough decisions.” He proposed spending cuts and an increase in the personal income tax to bridge a $400 million budget deficit. After an overtime session that typically extended into early July, the General Assembly finally agreed on an increase in the realty transfer tax to make up the deficit.
For the current fiscal year, the state expects to take in more than $100 million in revenue than had been budgeted. Carney’s budget plan would move that surplus money into the FY 2019 budget to fund one-time items like infrastructure and economic development. Convincing lawmakers to sign off on that idea, instead of using that money in the current fiscal year, will be one of the toughest fights ahead, he expects.
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