Gov. John Carney urged caution as the the latest revenue estimates from the Delaware Economic and Financial Advisory Council. Revenues are running at $180 million ahead of the amount that the governor used in his proposed budget, according to Delaware Public Media.
“We’ve been focused since I took office on limiting spending growth, on directing one-time revenue into one-time investments, and on making sure we don’t spend beyond our means. These new estimates don’t change our priorities,” said Carney. “The fact remains that our spending needs over the next several years will outgrow our ability to pay for them. If we fail to show restraint, we are setting ourselves up for difficult budget challenges next year or the year after that could require us to cut the very programs we’re funding this year,” Carney stated.
He added, “Over the next two weeks, we will work with chairs of the Joint Finance Committee on a sustainable budget plan that makes important investments but conserves resources, and sets us up for the long term.”
“We are fortunate that the DEFAC estimates have been trending upward this spring,” said state Rep. Melanie Smith, D-Bear, a member of the Joint Finance Committee. “As a result, we will be able to address areas of highest priority for funding. However, this does not necessarily mean that we should irresponsibly increase ongoing spending, but look to limit ongoing costs and direct surplus revenue into one-time investments or savings.”
A variety of proposals have gone before the General Assembly that would tap into or perhaps eliminate the $200 million.
A year ago, the General Assembly had to plug a $400 million gap in the state budget. While revenues have since moved upward, there are concerns that the current revenue spurt consists of one-time gains, with the state again facing a shortfall in 2019.
Carney’ proposed budget already comes with a 3.5 percent increase in spending.
The state is still wrestling with rising employee health care costs and sluggish revenues from other sources.
Moreover, the $200 million represents only a tiny portion of the state’s $4 billion-plus budget.
Republican legislators believe there is room for spending cuts in the current budget, while other says money is needed to combat issues, such as the opioid crisis.
