Governor signs $4.4 billion budget – up 4.4 percent from previous year

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With issues like a higher minimum wage and marijuana legalization on the sidelines,  Gov.  John Carney on Tuesday signed a $4.4 billion fiscal 2020 budget that is up  4.2 percent from the previous year.

The signing came well before the July 1 deadline. The session often stretches into the wee hours of July 1. Last year’s session adjourned and resumed after Democrats introduced a last-minute effort to  increase in the minimum wage. 

Republicans balked and insisted on a compromise that added a lower training and youth wage. While Democrats hold a majority in both houses, the budget requires a three-fifths vote for approval.

Still to be approved is the Bond Bill – the state’s construction budget and Grant in Aid – funding for selected nonprofits.

The budget  will be a  disappointment to fiscal hawks and some in the business community, who cited spending growth well above the cost of living figure of about 1.5 percent.

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The $100 million set aside for future downturns is well below previous budget shortfalls that have come during soft periods in the economy. 

The state continues to see financial pressures from employee health care costs that are rising above the rate of inflation.

This year, June 30 falls on a Sunday, perhaps spurring efforts to finish early.

The budget contains a $1,000 raise for state workers, money for schools with lower performance scores and higher poverty rates and dental funding for those on Medicaid. The state is one of the last in the union to not cover dental work

The budget will fund a $100 million, three-year plan to invest in improving student performance in areas with high poverty rates. 

“This is a responsible budget that focuses on Delaware’s future, with important investments in education, in our state employees, and in health care,” said   “We are making historic investments in the students who need our help the most, funding well-deserved raises for our state employees and educators, and fully funding important services for Delawareans and Delaware families who rely on them every day. Importantly, we also set aside additional reserves, to protect Delaware taxpayers from future budget cuts. I want to thank members of the General Assembly, and specifically the members of the Joint Finance Committee, for their work on this budget plan, and their continued partnership on behalf of the people of Delaware.”

Carney introduced his recommended budget in January, and members of the General Assembly approved the budget this week. Members of the Delaware Senate voted to approve the Fiscal Year 2020 plan on Tuesday afternoon. The Delaware House of Representatives approved the budget on June 20.

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