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Senate Republicans: cut budget by five percent

Delaware Public Media

All nine state senate Republicans have sent a letter to Gov. Jack Markell (D) to direct every state agency to chop their budgets by five percent as a way to solve projected deficits.

The letter says that move would free up $195 million when the new fiscal year begins in July as state officials stare down a $45 million shortfall according to the latest forecast from the Delaware Economic and Financial Advisory Council.GOP lawmakers say that cash should go toward bankrolling Delaware's $780 million infrastructure project backlog, giving state employees a pay raise and creating a contingency fund should revenues continue to plummet.

"In the past we’ve responded to budget shortfalls by raising taxes and fees and the economy has remained sluggish. It’s time to try something different," Republican senators wrote.

While the proposal calls for boosting pay for public workers, it doesn't demand that the five percent cut avoid trimming personnel costs in each agency as past proposals have outlined.

Sen. Dave Lawson (R-Marydel) has been pushing for a similar plan, but only calling for a one percent, across-the-board cut in state spending.

"It's simply the cry of people who don't want to put effort into governing," said Joint Finance Committee co-chair Sen. Harris McDowell (D-Wilmington North) of the plan. "It really isn't productive to simply try and set up finger pointing ahead of time."

McDowell says instead, Republicans should offer up specific ideas for cuts.

"What I take away from that [argument] is that [Democrats] believe state government is 100 percent efficient," said Senate Minority Whip Greg Lavelle (R-Sharpley).

The two parties are currently in negations to increase infrastructure spending after resoundingly rejecting Markell's proposed gas tax plan last year.

That's the only option left off the table, as Republicans have demanded changes to Delaware's prevailing wage system and adding right-to-work zones to jumpstart the economy.

"Our initiative would easily provide the necessary funding to kick-start these vital projects, without further burdening Delaware residents and businesses with new taxes," they wrote.

Those new taxes some Democrats are looking include adding new, high-income brackets to the state's personal income tax to generate new cash.

The letter also calls out the state Department of Health and Social Services for delaying implementation of a new program to target fraud and waste in Medicaid spending.

That revelation incensed lawmakers in both parties on JFC last month who learned the contract hadn't been awarded when the original pilot program was originally scheduled to wrap up in April.

Markell's operating budget proposal for fiscal year 2016 is $3.9 billion.

His office could not immediately be reached for comment.

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