$350 million.
That’s the projected budgetary hole that soon-to-be-installed Governor John Carney will face this year.
There is more than a little irony in that. Just like Ruth Ann Minner and John Carney had kicked the fiscal can down the road, leaving successor Jack Markell to deal with a budget shortfall in 2009, Markell has left an even huger chasm for Carney to try to close. Carney’s task has been made all the more difficult b/c (a) there have been fundamental changes to Delaware’s economy in the intervening years, and (b) he could well have a Republican State Senate to deal with.
So, kids, today’s question is how does John Carney address this deficit while remaining(?) loyal to the traditional principles of the Democratic Party?
Time to make a list. I’ll start:
1. Legalize marijuana and tax it. Let’s face it. The State of Delaware has already demonstrated that any alleged principles its leaders once had are for sale for the right price. Legalize usury? No problem. Craft corporate laws to protect shell companies from being liable for anything? No problem. Legalize casinos? No problem, despite those constitutional details. So, legalize pot, create a free-market competition for customers. You get a lot of added tax revenue and you create jobs and probably some new millionaires.
2. Raise the corporate franchise tax. Even Jeff Bullock, Markell’s and now Carney’s choice for Secretary of State, has said that it’s chump change to the corporations but a lifeline for the budget.
3. Add two new top rates to the Personal Income Tax. We’re not making new law here, just undoing a couple of decades of bracket shrinkage. When times were good, the bipartisan rush to reduce the top rates might have been defensible. Facing this gap, not requiring those at the top of the food chain to do their part is indefensible.
I’ve got more ideas, but let’s hear yours. We’ve had eight years of hit after hit to state employees, to the indigent, and to vulnerable populations with next to no revenue enhancement to the budget other than incremental licensing fee increases.
We’ve seen statistics demonstrating that literally all of the economic growth that Delaware has experienced since climbing out of that 2009 recession has gone to Delaware’s wealthiest.
It is time for a Democratic governor to stand up for everyone who has been left behind. Folks, please give us your suggestions as to how our Democratic governor John Carney can be the best Democratic governor he can be.