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Delaware Democrats cancel budget meetings after backlash to cuts

Delaware Public Media

Top Democrats in the House and Senate have canceled a final budget meeting this week as they try to continue negotiations with Republicans over potential tax hikes.

After it cut about $33 million from the budget Tuesday, House Speaker Pete Schwartzkopf (D-Rehoboth Beach) and Senate Majority Leader David McBride (D-New Castle) told the Joint Finance Committee to stop, saying they've fielded calls from voters and legislators alike.

Instead, both men want JFC to wait while they try to convince Republicans to hike the personal income tax, alcohol tax and cigarette tax.

Schwartzkopf says further deep cuts – which could include state worker furloughs or early retirement plans – shouldn’t be made this early.

“I just don’t see the need to go down there and cut to the point where people’s lives change when it doesn’t have to – yet,” he said.

GOP lawmakers don’t necessarily agree, considering Gov. John Carney (D) proposed an even split of tax hikes and budget cuts in his proposal.

Rep. Mike Ramone (R-Middle Run Valley), who sits on JFC, says it’s not unreasonable to keep clawing at the state budget at this stage

“The next step is to get to $200 million in cuts. I don’t think that’s alarming. We have to get to $200 million in cuts if we’re really talking about $200 million in income,” Ramone said.

So far, JFC has cut about $80 million over the past week.

Negotiations among leaders from all four caucuses have netted about $115 million in new taxes should the state Senate sign off on the bill.

That cash would come from a boost to corporate franchise fees levied on humongous companies that incorporate in Delaware.

House lawmakers also voted to repeal the state’s estate tax the same day, costing an estimated $5 million annually.

Negotiations among party leaders will continue next week.

JFC is expected to meet again in mid-June before the release of the final state revenue report.

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