State Budge Cuts Looming

Filed in National by on December 21, 2010

The News Journal reported on yesterday’s Delaware Economic and Finance Advisory Council (DEFAC) meeting yesterday with some not unexpected news: state budget money is going to be tight this year, real tight.

Difficult budget choices lie ahead for Gov. Jack Markell and lawmakers as the state deals with rising costs, the loss of $43 million in federal stimulus money and lagging tax revenues.

Markell has not yet made any cost-cutting proposals, but increases in state employee benefits and Medicaid make it almost a certainty there will be some cuts.

The current forecast is not available on DEFAC’s website, so bloggers and commenters are kind of limited to the News Journal article today. The good news in all of this dire news of budget cuts is that Kenneth Lewis, an University of Delaware economist professor, sees the projections offering signs of economic recovery according to the News Journal.

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Comments (8)

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  1. anon2 says:

    Whatever happened to the calls for consolidation of offices and school districts?

  2. nemski says:

    School district consolidation is a pipe dream. Parents (read voters) would not go for it.

  3. cassandra m says:

    Probably not, but that shouldn’t stop the Governor or the Legislature from freezing or reducing state funds to school districts. Keep that up long enough and consolidation becomes survival.

  4. Kilroy says:

    Education should be fine with the 119 Million dollar Race to The Top prize and with SIG.

    Consolidation of school districts won’t happen as it would require realignment of property taxes across the effected areas. You don’t hear legislators beating the war drums for consolidation. However,if we are going to do it, why not once school district for the state and all controlled by the Delaware DOE. Have board of community board of directors for each school that includes parents of attending students and community members. Referendums could be state-wide or funding like the votechs that don’t required referendums. One pay scale and let DEDOE deal with labor relations /contacts. This would be the ultimate consolidation if school districts saving far more that the Rodel funded LEAD report.

    We do need to stop the state unfunded mandates shifting greater burden on to local taxpayers. Next year all school are required by law to have guidance counselors but not added state funding.Re: Race to The Top, the changes in state education regulations defaults funding to the local taxpayers after the four-year Race to The Top ” grant” runs out. RTTT is not a federal mandate like NCLB and its funding is not sustainable.

    If we are going to reform state employees healthcare and pension as Markell “will” propose, we must do the same for our legislators benefits and end retirement for state legislators.

    Cassandra, for the last 6 years or more state funding to the schools have been cut and it started with the “Minner Givebacks” The Extra Time grant funding is no more! The big hammer will be loss of federal education stimulus money and you’ll see loss of jobs next year. However, that last Jobs Bill back last summer provided so money and Red Clay banked it for next year.

  5. anon2 says:

    I didn’t intend to cast a spotlight solely on school districts. I just remember the conversations of what, two years ago when the bottom was falling out and “everything was on the table” but here we are now and what efficiencies have been achieved? What cuts? I know there were some concessions by state workers which helps but this problem is not going away and now the Gov is less than two years from his reelect so can we expect any bold changes beyond fee and toll increases that nickel and dime every resident to the poor house?

  6. anon says:

    Whatever happened to putting non violent, drug offendors into rehab at a cost of $3200, as opposed to $34,000 to imprison them? We hear everyone including the disabled are going to get cut. Providers are fearing the worst, as most state they can’t afford to take even a small cut. Working at the bone now, not having an increase in 6 years. Staff are underpaid, working overtime, no new hires, living hand to mouth. What has Delaware been doing this last year to really cut their budgets? Nothing…

  7. Kilroy says:

    “What has Delaware been doing this last year to really cut their budgets? Nothing”

    You can only cut so deep ! The real question is what has been done to create jobs and boost the economy so that we ca afford the state services that we deserve?

    “I know there were some concessions by state workers which helps but this problem is not going away and now the Gov is less than two years from his reelect so can we expect any bold changes beyond fee and toll increases that nickel and dime every resident to the poor house?”

    I appreciate the work the state workers do and for the most part they are grunts doing a thankless job. We do we cut? Perhaps we need to cut at the top re: administrative pay! 20% across the board for all management positions making over 50K.

    Mayor Baker’s answer to is to eliminate some WPD command position which send a seniority bump-down impacting 35 offices and bumping out 6 new rookies. Police out security for the state, cities and towns should be off the table or have Washington. Win the war on terror but lose the war on domestic crime ?

    Don’t take this personal folks, if Markell puts as much energy in creating jobs as he does transforming public education perhaps we would be better off. He did add another department to DEDOE call the RTTT School Turnaround Department adding another lay of administration. When the RTTT funding is gone state and local taxpayers will fund those jobs.

  8. Paratrooper18 says:

    Instead of non-violent drug offenders how about releasing dead beat dads. Delaware courts already treat non-violent offenders fairly easy. To end up in prison or jail due to non-violent offenses takes alot work on the part of the offender. It is not one,two, or three strikes; Delaware does anything and everything to keep them out of jail.

    However Delaware jails and prisons are crammed with dead beat dads. Who will never pay up while they are in prison. There is no point to it,except that it is a political hot button. So what?

    Instead of this federal tax cut, how about we use the money to bail out the states. That will actually create jobs and get the economy moving again. Either way we are going to pay higher taxes.. Either through state and local increases, or through the federal income tax.