Operating Budget
The multi-billion dollar operating budget includes more than $11 million for a 3% state employee pay increase, rather than Meyer’s suggested 2% raise. The raise will be implemented for three years.
State Senator Trey Paradee (D-Dover), the Joint Finance Committee chair, says the spending increase over last year “is not insignificant.”
But the increases are concentrated on healthcare and education spending.
“These are not optional expenditures,” Paradee said. “They are fundamental responsibilities.”
A sizable piece goes to state employee benefits, which Paradee said is approximately $16 million spread across departments. Medicaid spending will amount to more than $180 million.
And the budget lists $65.8 million for Other Post-Employment Benefits Investments, which funds healthcare for state retirees and will reduce long-term liability. This is coming from escheat dollars this year.
One time Supplemental Spending bill
The Senate also advanced a $146,199,300 one supplemental budget, about 3.8 times more than the allocation last year. It includes the $8 million for Delaware Early Childhood Care Education advocated for by Gov. Meyer and $100 million for the state’s new education funding formula.
Budget growth and revenue
The billpassed with bipartisan support in the Senate.
But Senator Eric Buckson (D-Dover), a Joint Finance Committee member, says he’s concerned that the state’s budget grew by 6.3%. He acknowledged that’s a smaller percentage increase than last year’s budget.
“We're getting better,” Buckson said.“...There are challenges. I do believe we can manage those challenges.”
Buckson said the state’s taken on spending commitments through laws that require financial commitment, “not so much recently, but in the past few years, that add significant cost to operational budget.”
Paradee responded that he and his JFC co-chair State Rep. Kim Williams (D-Stanton) want to keep spending down, and there are approximately 35 bills “stuck” in either Senate Finance or House Appropriations to avoid increasing financial commitments.
“There is a big difference between one-time investments and ongoing expenses,” Paradee said.“...We were trying to contain budget growth. We have a lot of obligations that we started out with.”
June DEFAC
State revenue is up more than 5% from December projections Meyer used to craft his recommended budget. That’s an additional $350 million in estimated revenue available, which does compensate for the increase in planned spending.
After the Joint Finance Committee’s mark up to the budget, and increased estimates for revenue, Governor Matt Meyer said he was happy to see added support for measures like the school funding formula.
“If we're taking money from you, the private resident of Delaware, I think we should take it and spend it,” he said. "We shouldn't just stock it away for some future day.”
The budget bills head to the House for review.
