The Delaware General Assembly’s Joint Finance Committee’s voted to appropriate 97 percent of available revenue, dashing hopes of a number of constituencies hoping to tap into projected revenue estimates of upwards of $200 million.
“Delaware has a tradition of fiscal responsibility, and I want to thank members of the Joint Finance Committee for their vote today, which shows restraint, and a commitment to making responsible, long-term decisions about our finances,” said Gov. John Carney.
On Monday, Carney urged caution when higher revenue estimates were released.
“Today’s vote is a major step toward that commitment and I look forward to working with the entire General Assembly through this session to ensure this additional surplus revenue is set aside. Thank you to members of the Joint Finance Committee for their partnership in this effort,” Carney concluded.
Carney’s proposed budget comes with a 3.5 percent increase in spending that has been criticized in some quarters.
At the same time, other groups, including nonprofits and the state’s casinos have started intensive lobbying efforts in a battle regain funds last year as legislators dealt with a $400 million budget gap.
The state is said to face a structural budget deficit brought on by sluggish tax revenues and spending on state employee benefits, Medicaid health care, and other areas.
The state prides itself on low property taxes and no sales tax but has few options other than increasing the income tax and corporate fees when budget shortfalls appear.
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