Gov. John Carney cautions lawmakers to exercise fiscal restraint after Delaware’s revenue estimates climbed again Monday.
The Delaware Economic and Financial Advisory Council (DEFAC) raised its Fiscal Year 2020 revenue forecast by nearly $13 million.
That comes after DEFAC hiked its revenue expectations by $28 million last month. Lawmakers currently have about $4.79 billion to spend next year.
DEFAC also raised it’s March revenue estimate for the current year by $37.9 million. That’s primarily due to an increase in corporate tax revenue.
Finance Secretary Rick Geisenberger said Delaware enacted corporate tax changes in 2016.
“The fiscal note, which I believe was somewhere in the $25-to-$30 million range is now estimated to be in the $4-to-$6 million range," he said. "At least for this year.”
Geisenberger explains why.
“It turns out that in more recent years, those companies have not had taxable income, whether to Delaware or even nationally," he said. "Therefore, the cost to Delaware has turned out to be significantly less, at least in the fiscal year we’re currently in.”
Finance officials also say a half a dozen companies who recently had no tax liability have paid about $10 million this year. They declined to name the companies or indicate their size.
Gov. Carney said lawmakers should save excess money for an economic downturn.