Early state revenue projections are flat as government budget writers begin preparing next year’s proposed spending plan.
The Delaware Economic and Financial Advisory Council (DEFAC) is predicting grim news for the first financial forecast of the new fiscal year.
It shows revenue collections for the current year are down about $40 million from what they expected in June and that trend continues into next year.
That could mean another tough session for lawmakers according to budget director Brian Maxwell, though some recommendations to solve the problem were proposed more than a year ago.
“The administration has participated in a revenue review committee and an expenditure review committee and a lot of those things that were talked about or discussed in those review studies hasn’t really been acted upon,” Maxwell said.
One possibility raised is tweaking rates on several taxes, but discussion of that option has stalled efforts to move ahead with any measures.
Should revenues remain flat, legislators may have less money to work with than in the current year.
Perennial budget busting issues like increases to Medicaid, state employee health benefits and education costs could require significant cuts elsewhere in just a few months.
