Governor Markell has unveiled his FY2011 Budget proposal, which will seek to eliminate a $254 budget deficit with $143.6 million in spending cuts and cost savers, $59.8 million in additional federal funds, $39.7 million in anticipated table game revenues and $10.6 million that is extra money in the Rainy Day Fund. Ginger Gibson of the News Journal has the few details that have been released so far:
* Savings from cuts in several departments, which includes proposals to consolidate office space and merging divisions in state agencies and better manage real estate, and otherwise make state government run more efficiently, that will save $1.1 million or more.
* No tax increases.
* Reduction of benefits for future state employees, including changes in employee contributions to the pension fund and health insurance, that will save $75 million over the next five years.
I will update this post as new details become available shortly.
Update: More details:
* The $253 million defecit will be closed entirely by cost cutting. No raising taxes or fees, and no state employee layoffs.
* There will be a renegotiation of the state’s pharmacy contracts to drive down employee health care costs.
* The Department of Natural Resources and the Department of Education will be consolidated and hours will be cut at the Smyrna rest stop and the E-Z Pass Customer Service Centers. You will no longer get your EZ Pass statements or income tax booklets by mail.
Still more details:
* No restoration of he 2.5 percent pay cut state employees received last year.
* Authorizes the hire of 90 new teachers and allow salary step increases for state workers who are entitled to them. Otherwise, salaries are frozen.
* They also plan to accomplish the $140 million in savings through smaller cuts, like eliminating funding for beaver control ($25,000), only cutting the grass every other week at the Herman Halloway campus outside Wilmington ($15,900) and reducing the hours at the Smyrna Rest Stop ($380,000).
* The Budget includes a $356.5 million proposed capital spending for construction and road projects. That includes $60 million in cash and the remainder would be funded through bond sales.
* It also includes $98.8 million in construction for public education for projects that have already been approved by various districts.