State employees will see a 1.5 percent pay raise beginning in October should lawmakers sign off on their nearly $4.1 billion operating budget.
That’s a slight jump from what Gov. Jack Markell (D) earmarked in January, which would have been a flat one percent.
“It’s going to be hard to get substantial increases as you look in the future,” said Sen. Harris McDowell (D-Wilmington North), co-chair of the budget writing Joint Finance Committee.
The unanimous vote came towards the end of JFC public hearings Thursday.
Public workers will either see a 1.5 percent bump or $750, whichever is greater, in their annual salary.
In total, the move will cost a little more than $20 million in the first year – one of the few significant additions JFC made using general fund cash over the past two weeks.
JFC’s budget is 4.7 percent higher than the current operating budget, but rang in roughly half a percent less than Markell’s plan.
Committee co-chair Rep. Melanie George Smith (D-Bear) says they were able to give a bit more than Markell's proposed in January partly because they’re potentially culling vacant positions next year.
“Given that, we are recognizing with this pay raise the fact that we know we’re asking state employees to do more because there’s fewer of them. We’re cutting a lot of those vacancies out and so we really want to acknowledge the extra work that people are doing,” Smith said.
The Bond Bill Committee won’t get as much cash as they had hoped, nor will nonprofits dependent on the Grant-in-Aid bill.
Smith and McDowell say they’re going to have to cut both, but wouldn’t commit to a specific number.
In the current fiscal year, nonprofits got $43 million from Grant-in-Aid, but there’s only about $45 million to split between them and capital projects.
$6 million to redistrict Wilmington schools, should House and Senate lawmakers agree on some plan by June 30.
Smith also tried to solve two years of contract disputes between United Healthcare and Nemours A.I. DuPont Hospital for Children in one fell swoop.
A piece of epilogue language, a mechanism used by JFC to supersede existing state code, would have required any Medicaid provider to cover specialized pediatric care.
“I’m at a complete loss of what to do,” said Smith, noting no permanent solution is likely in the short term.
Those enrolled in Medicaid are able to receive in-network care at Nemours if they’re enrolled under Highmark Blue Cross Blue Shield Delaware.
Sen. Bruce Ennis (D-Smyrna) joined a chorus of other lawmakers in rejecting the notion, which they fear could set a precedent.
“I think this step, without having all the parties here, is probably the wrong forum to resolve this issue,” Ennis said.
A letter from Steve Groff, the state’s Medicaid director, also warned JFC not to wade into a private, contractual dispute that could scare away insurance companies willing to take on Medicaid patients.
Ultimately, lawmakers balked at the proposal and failed to vote on it.
