Gov. Jack Markell unveiled a budget plan Jan. 28 that includes no tax hikes, no fee increases and no plans for state worker layoffs.
The $3.1 billion spending plan calls for a laundry list of state spending cuts and relies on new revenues from table games to close an estimated $253 million revenue shortfall for fiscal year 2011.
Markell said the revenue gap represents a greater demand for state services in the face of the economic downturn and the loss of a substantial portion of federal stimulus money that helped fill an $800 million hole in last year’s budget.
“Just like a business or your budget at home, certain things cost more than they did last year; health care for employees, prisons, Medicaid,” he said. “While the challenges aren’t as significant as last year, they are real.”
The bulk of Markell’s plan to offset the shortfall is $143.6 million in agency cuts, some of which can be implemented by executive order, while others will require legislative approval.
Most notably, the governor proposed raising health care and pension contributions for new hires at state agencies for an estimated savings of $1.6 million.
Other cost-cutting measures include closing a portion of the Sussex Correctional Institution and relocating some prisoners; consolidating three divisions of the Department of Natural Resources and Environmental Control; implementing energy-efficient practices in state buildings; and eliminating printing of paper tax filing booklets as well as the thick, bound copies of the budget itself.
Markell also plans to restructure the school transportation system and shift some of the costs to local districts.
In the plus column, the governor plans to fund 90 new teaching positions and teacher step raises.
On the capital budget side, Markell wants to replenish the state’s strategic fund used to provide loans and incentives to businesses, as well as authorize more than $98 million in bonds for new school construction.
Dover, Del. —
