Governor Carney Signs Executive Order on Budget Smoothing

Action will create benchmark budgeting mechanism and promote fiscal sustainability

DOVER, Del. – Governor John Carney on Saturday signed Executive Order 21 to implement recommendations of the advisory panel to DEFAC to study potential fiscal controls and budget smoothing mechanisms. The Order will create a benchmark budgeting mechanism, and a Budget Stabilization Fund for budget planning, to help the State of Delaware take a more sustainable, long-term approach to annual budgeting.

Governor Carney and Michael Houghton, Chair of the Delaware Economic and Financial Advisory Council, issued the following statements on the Order following Saturday’s signing:

“Over the past several decades, we’ve seen Delaware’s budget go through good times and bad times,” said Governor Carney. “As every Delaware family knows, you’re supposed to save some of your money during the good times so you can make it through when money gets tight. This Executive Order holds state government to the same standard. It’ll even things out so when a bad economy comes along, we won’t see massive cuts in services or dramatic tax hikes. This is the responsible thing to do for taxpayers who rightly expect us to manage their money wisely.”

“I’m disappointed that we were not able to structurally improve the budget process like our committee recommended. It would have made life more predictable for nonprofits, fire companies and others relying on State funds and avoided the unhealthy ‘feast or famine’ fiscal cycle we are seeing,” said Michael Houghton, Chair of the Delaware Economic and Financial Advisory Council. “As Chair of the Advisory Panel that recommended the changes to the General Assembly, I want to thank Governor Carney for stepping up and initiating changes that more responsibly align State spending with revenues through his Executive Order.”

Learn more about the Executive Order on budget smoothing

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Governor Carney’s Statement on Budget Smoothing Constitutional Amendment

DOVER, Del. – Governor John Carney on Tuesday issued the following statement on House Bill 460, which would implement recommendations of the Advisory Panel on Potential Fiscal Controls and Budget Smoothing Mechanisms:

“Delaware has a long tradition of fiscal responsibility. We’ve been focused since taking office on addressing our long-term challenges, on responsibly investing one-time revenue, and on making sure we don’t spend beyond our means. This will require a long-term commitment, and this constitutional amendment will help ensure our commitment to making responsible, long-term decisions about our finances.”

Learn more about the budget smoothing proposal.

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Governor Carney, JFC Co-Chairs Release Statements on DEFAC Estimates

Governor Carney’s Statement on Budget Smoothing Report

Governor Carney Presents Fiscal Year 2019 Recommended Budget

Governor Carney’s Statement on Budget Smoothing Report

WILMINGTON, Del. – Governor John Carney on Tuesday issued the following statement on the Executive Summary of the Advisory Panel to DEFAC on Potential Fiscal Controls and Budget Smoothing:

“We do not face a budget deficit this year but, as a state, we cannot lose sight of our long-term financial challenges. Working with members of the General Assembly last year, we asked this advisory panel to study and recommend ways to improve our fiscal controls to address our structural spending and revenue challenges. I want to recognize and thank the panel’s chair, Mike Houghton, and all of the panel’s members for their important work.

This is a long-term challenge that will require a long-term commitment. We cannot continue to appropriate into a bubble, only to cut our way out in years where our revenue growth does not match spending needs. We’re already focused this year on limiting spending growth, on directing one-time revenue into one-time investments, and on making sure we don’t spend beyond our means.

Over the long term, fixing this problem will require us to more closely align spending and revenue policies with sustainable levels of economic growth. We should finally commit to addressing our budget problems so we can get back to making investments that matter – in our schools, our communities, and our economy. I look forward to discussing the panel’s recommendations with members of the General Assembly of both parties.”

Governor Carney signed House Joint Resolution 8 in August 2017, creating the advisory panel to study fiscal control measures.

Click here for more information about the advisory panel and its work.

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