OK, kids, a refresher. John Carney, combining the collective wisdom of Ken Simpler, the Concord Coalition and, of course, the Chamber, tried but failed to get the General Assembly to adopt his budget-smoothing proposal.
What is budget-smoothing, you ask?:
Developed by a task force that included Republican Treasurer Ken Simpler and Carney’s Finance Director Rick Geisenberger, House Bill 460 would place a cap on year-to-year spending growth based on a series of economic indicators.
Lawmakers then would be required to evenly split any revenue beyond that benchmark between one-time expenses and a special fund set aside to cover future shortfalls in tight budget years.
Do you notice anything missing from this inflexible formula? If you answered ‘generating sources of additional revenue’, you’re correct. You know, like increased taxes on Delaware’s wealthiest, for example.
The good news is the General Assembly didn’t enact this scheme, and doesn’t appear poised to do so any time soon.
The bad news? Carney has instructed his cabinet and state agencies under his purview to adopt the Carney/Simpler/Chamber plan when putting together their budgets. He did it by Executive Order.
Delaware government employees might have to pay a little more for their health care in a few months. The State Employee Benefits Committee is considering raising premiums for tens of thousands of state workers and their families, although nothing has been decided yet…
…“Any time the state sort of puts off minimal increases because of the financial situation, the problem just compounds and gets worse,” Department of Health and Social Services Deputy Secretary Molly Magarik said…
…”Mr. Jackson, who is tasked with carrying out Gov. John Carney’s financial vision in regard to the state spending plan, would not say Monday which premium option the executive branch prefers…“(a)t this point, we’re looking at you could smooth (the Group Health Insurance Program projected deficit) out over time or you could do nothing and, rather than a 2 percent increase over the next two years, it could be a 4 percent in one year,” Mr. Jackson said.
Or you could generate more revenue to ensure the ongoing solvency of the program. Do any of you know just how many important positions are going unfilled in state government b/c the state does not offer a competitive salary? Do you know that state has changed its overtime formula so that, instead of getting OT at 37.5 hours, it’s now at 40 hours?
Budget-smoothing does not consider the needs of state employees and the services that state employees provide.
But it satisfies its cult members, aka John Carney, Ken Simpler and their, wait for it, ilk.
Will someone please primary Carney’s Concord Coalition ass?