Governor Minner’s Last Budget
Gov. Minner released her final budget today, recommending an operating budget total of $3.06 billion for FY10. This budget is a 8.9% decrease from FY10, but doesn’t close all of the projected $556.8 million revenue gap. This budget included $190 million worth of cuts leaving $366.8 million of additional cuts to close the projected gap to the incoming Administration and Legislature.
The NJ provides a summary of the proposal:
• $128.1 million by driving down mandated costs and discretionary spending: Reducing program expansions, delaying the addition of four state troopers in Sussex County, not authorizing several judgeships in the Judicial branch, not authorizing the addition of workers in the Attorney General’s office to handle increasing caseloads, no new school-based health centers or provider payment increases, reductions to mandated costs to Medicaid.
• $31.1 million from maximizing special funds: Reductions by $10 million each to the open-space and the farmland preservation funds. Movement of funds from Abandoned Property from Transportation to the General Fund.
• $30.8 million in base budget reductions: Eliminating 37 vacant positions, cutting pass-through funds by 15 percent, cutting the higher education budget by 3 percent and closing the Governor Bacon and Emily P. Bissell long-term nursing homes.
The work to close the FY10 budget gap is further complicated by the fact that the Legislature still needs to pare about $160 million in spending from the FY09 budget to close this year’s gap due to the financial meltdown.
Certainly this is going to be a very big job and once this is resolved, there will be massive cutbacks in the services provided by the state, probably across the board. Interestingly, Acting Office of Management and Budget Director Mike Jackson provides a way to visualize the magnitude of the cuts to come:
He said $556.8 million also could be covered by completely eliminating Health and Social Services, an agency that provides Medicaid, children’s health insurance and a long list of public assistance programs.
They aren’t making that proposal, of course, but that is an 18% cut in total budget spending and that does not include any of the cuts are still needed to close the FY09 gap. But 18% is a serious cut back and likely means not just eliminating job vacancies, but layoffs, furloughs and fewer days off as well as reduced services across the board.
The House Majority Caucus responded to Gov. Minner’s proposal, noting that there are no easy fixes and that they’d preference cutting budget spending before considering additional revenue generation.
Jack Markell and many of the new legislators campaigned on finding better ways to provide health care to the un- and underinsured; finding better ways to be better stewards of the environmental assets of the states; investing in efforts to make the state more business friendly — and in light of the financial meltdown and the real shortfalls in revenue pretty much everywhere I wouldn’t be surprised to hear that some of these goals are postponed. But I also wouldn’t be surprised to hear in the next few months that the revenue shortfalls are bigger than published today — the corporate fees and income taxes that the state relies on tend to be very volatile revenue streams especially as the national economy contracts, partially led by the banking and insurance industries.
Tags: Delaware Budget
Of course moronic childlike Republicans (and Democrats who think like moronic childlike Republicans) will respond to this crisis by crying and moaning that their taxes are too high.
Taxes are going to go up across the board. Things are going to get worse before they get better and everyone is going to feel the hit.
Senate Bill # 16
This Act permits a service pension after 25 years of credited service, regardless of age, without actuarial reduction.
Jan 15, 2009 – Assigned to Finance Committee in Senate.
So instead of laying off state workers many can retire five years early! This will help reduce the state work forces and not throw those short of the 30 years out on the street! I see it as a good thing! However, we may lose some seasoned teachers. But then again with cuts in education we will lose some good teachers.
Paul Krugman wrote a column a few weeks back called “50 Herbert Hoovers” about how the states will start slashing their spending during the economic downturn, which will make things worse.
I’m putting Pete Schwartzkopf in the category of Democrats who think like moronic radical Republicans.
Pete – you are already on my shit list for pushing Atkins on us. Is this kind of empty-headed radical Republic rhetoric really what is called for right now?
Get your head out of your ass.
How about some long term changes, like adjusting how many years are required by elected officials to be eligible to receive a pension.
It is easy to make short term cuts and worry about it next year.. how about some trimming of the fat that makes long term stability more available.
Don’t ask me what.
Jason… Schwartzkopf’s quote here doesn’t seem so radical, although I’m not up on Pete’s other issues.
Of course we have to look at the expense side and make cuts where we can. That process doesn’t have to be a radical one, though – it can be done from a Democratic point of view.
The radical part comes when Republicans blame Dems for the inevitable tax increases, as if the Bush economy had nothing to do with it.
I am personally aware of someone who is a county cop and disabled. Granted they were hurt on the job however they didn’t provide one day of service to the county last year and made over $90,000.00. There has to be some trimming we can do on the expense side before raising taxes. We are all hurting financially right now and I don’t have any additional money to pay in taxes! I just don’t have it. I’m scraping by as it is and I know I’m not alone.
The state and county both need to make drastic, but temporary cuts in spending. There is lots of fat in those budgets that can be trimmed — trust me I worked for the state for many years and have seen much in the way of wasteful spending and inefficiencies! You don’t have to do away with needed programs — just manage them better.
Brian Shields
“How about some long term changes, like adjusting how many years are required by elected officials to be eligible to receive a pension.”
Fire in the hole ! Better yet set term limits and forget about the pension!
Why don’t we jsut quit giving the illegals everything for free (Food stamps, medicaid, housoing, utiltiy assistance adn concentrate o our own folks.
Off thread but did anyone go to the SEU Oversight Board’s meeting in Newark on Wednesday morning? If so, what did they discuss? Who are the “new” Board’s members?
My guess is if you opened the states book and looked at all the line items you could save 50-100 million by taking away legislatures pet projects, pork, nepotism, etc. which is exactly why the books wont be open.
The radical part comes when Republicans blame Dems for the inevitable tax increases, as if the Bush economy had nothing to do with it.
They’ll blame Dems for major cutbacks in services and the rise in unemployment if there are layoffs too. Blame is a given.
It seems to me that this budget crisis provides some opportunities — including a serious look at revenue streams to try to stabilize those and a serious look at state expenditures that really ought to be paid for by counties and municipalities (I’m specifically thinking about police and fire department costs especially for below the canal locations).
cassandra_m
“The radical part comes when Republicans blame Dems for the inevitable tax increases, as if the Bush economy had nothing to do with it.”
I’ll meet you half way! Bush is responsible for this recession not for the billions that went into the police action in Iraq but for allowing himself to be held hostage to the police action on terror ignoring the economy. However, some of these “free trade agreements” somehow had a price tag. My opinion of Minner has zero to do with her being a democrat and in fact I voted for her first term. No she is not totally to blame for Delaware’s economy but for sure she was just as bad as Delaware’s leader as Bush was the U.S leader.
Though not by much, Minner legacy will be a bit brighter than Bush’s. Years down the road her open space initiative will be praised. Ban in smoking will be praised. Bush’s proud Homeland Security came about as a reaction to a crisis whereas, Minner long term efforts was to reduce future impact. But Minner failures in leadership has plenty to do with the health of Delaware’s economy.
Sometimes I think it’s fair to blame individuals regardless of their political party!
Jason,
The more I read what you write, the more I think that you’re a complete idiot.
If the Democrats start raising taxes or fees – and what other kinds of “revenue enhancements” are there? – before they cut spending substantially, they’re opening themselves up to a shitstorm of criticism… not only from Republicans in the GA, but from ordinary people.
Susie Taxpayer sure as shit doesn’t understand why legislators don’t cut their own salaries to the bone first. Joe Taxpayer thinks it’s stupid as hell to pay for two offices for the governor (three, if you count the ceremonial one in Leg Hall). While those steps won’t solve the ginormous budget problem, they’re smart things to do.
Cutting spending first is just smart politics. And Pete’s no dumbass.
aon
“Cutting spending first is just smart politics. And Pete’s no dumbass.”
I attended one of those Markell’s town hall meetings and he seemed committed to reviewing all departments in efforts to reduce waste. This was pretty much his plan before committing to any tax increase. I am sure any taxes increase will come after Obama’s plan to lower taxes. So instead of getting $12.00 a week tax relief it will be more like $8.00 after the state skims theirs. Then Red Clay will come along with a referendum of “just a cup of coffee a day” and skim more! However the failure to enact full financial transparency will be the fault of Markell!
State troopers and state workers take state cars home every night. Gas, wear and tear, maintenance, replacement… long term costs over time.
I still don’t understand why pensions are even offered for elected positions, ever.
When over 16% of the state’s eligible work force is employed by the state, something is wrong. There’s fat to trim. There are jobs that need consolidating, hours to extend.
Cutting one job you save not only salary, but you also save the massive amounts in benefits paid by the state. Paying time and a half to 3 people to make up for that one person is still saving when you add up the savings in benefits, overhead, supplies, electricity, and other various minute overhead associated with too many personell.
Instead of building new state government offices, how about buying or renting out existing vacant storefronts that pump money back into the economy, instead of funneling it to developers who butter up legislators for state contracts.
How about being creative instead of just cutting back spending. How about being smart with the money we have instead of spending roughshod and cutting back when times are bad. How about being efficient with our cash when times are good, banking some, and having it available when the economy cycles.
Ask Seaford how that’s working for them right now. They spent responsibly and saved surpluses in the good years, and have it now in the lean when they need it. Don’t tell me it can’t be done.
Hmm, who was mayor of Seaford when all that was set up…. it couldn’t have been Republican House Minority Whip Danny Short.. nah.
There are smart savings and poor decision savings.
Think of it this way.. spending $100 a month on fast food is a waste of money. Cutting back that amount when times are rough and brown bagging is all well and good, and saves you money in the short term. Instead, learning to cook a meal the night before, and eating the leftovers for lunch saves you more money than just the $100, and has side benefits like improved health, etc.
Smart spending through smart actions.
Cutting 4 state troopers is not smart saving, it’s a stop gap measure. Finding ways to eliminate those 4 positions through effective labor management or decreasing demand in crime fighting is smart savings.
The state and county will layoff a good number I bet. Then people will really start complaining. Careful what you wish for.
Education and Health cuts will be dramatic along with state layoffs/leaves.
I can’t wait to hear your informed and unbiased posts.
The Dems have built a house of cards in Delaware called state government. It is long over dur to have a fundamental look at why the state is the largest employer.
Brian Shields-When you get your legs (it’s inevitable), I’d like to see you run for public office. You have a keen, ethical mind, and I prefer to vote for real people. People (like me) who have actually walked *where the bottles break” (reference John Gorka), and have lived in ‘manufactured housing’.
CAVEAT: I’m posting while under the influence (PUI, as it were). I do some of my best/worst work after a little Canadian whiskey.
Cheers.
Thanks.