Those in state government are hoping for a holiday miracle as they set the final revenue projections used for the governor’s upcoming proposed budget.
Budget writers have been anxiously hoping for positive news from the Delaware Economic and Financial Advisory Council (DEFAC) as they stare down a $167 million shortfall.
That’s the amount of money they say is needed if they simply cloned the current year’s budget and used it again next year.
Adding in growth to Medicaid, automatic bumps to teacher salaries and increased classroom sizes, among other things, and the estimated cost rises to nearly $330 million.
It’s not unfamiliar territory for the Markell Administration – they’ve faced mostly stagnant revenue growth for years while factoring in mandatory spending increases built into state law.
Should little change, it’ll also be an immediate test for governor-elect John Carney.
Democrats are in danger of losing their majority in the state senate for the first time in 40 years, meaning Carney might have to broker deals over any proposed tax increases or spending cuts.
DEFAC meets Monday afternoon.
