Jack Markell has proposed an across-the-board 8% pay cut for all state employees, including teachers. This would include both merit and non-merit employees and, coupled with benefits reduction and holiday adjustments, will reduce employee compensation by about 10%.
The News-Journal’s Ginger Gibson has done a superb job of explaining Gov. Markell’s entire proposal, and you can read it here.
Gibson reports that:
The governor wants to cover the state’s estimated $751 million budget deficit in several pieces — $371 million in budget cuts and moving funds, $166 million in new taxes, $155 million in stimulus funds, $55 million in gambling revenues and $12 million in new fines and fees.
Markell said the decision about where to cut and which taxes to raise were based on three principles, fiscal responsibility, compassion and shared sacrifice. He said his administration is committed to ensuring that long-term goals are kept in mind while keeping in mind the need for core government services and not placing too much of the burden on a particular group.
The Governor also calls for an increase in the personal income tax for those making over $60,000 annually, an increase in tobacco and alcohol taxes, and increases in gross receipts and corporate franchise taxes.
Markell also calls for legalized sports betting that will not be limited to just the racetracks. That should make for some interesting political negotiations.
There is a lot more in Markell’s proposal and in Ginger Gibson’s article. Please read her piece and come back here and speak your piece.