WILMINGTON, Del. – Governor John Carney on Monday released the following statement on the latest estimates from the Delaware Economic and Financial Advisory Council (DEFAC):

“We continue to show strong revenue growth, which is a positive sign for Delaware’s economy and our state budget. But, as we’ve said all along, much of this revenue is coming from one-time sources and volatile revenue streams like the corporate income tax. Delawareans expect us to responsibly manage their money in good and bad times. We should not use one-time revenue to fund ongoing expenses. That’s why we will continue to talk to legislators about dedicating one-time revenue to one-time expenses like infrastructure projects and open space preservation – while putting money away to prevent spending cuts the next time our revenue picture trends downward.”

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Learn more about Governor Carney’s Fiscal Year 2020 budget proposal.

Plan advances priorities outlined in State of the State including public education

DOVER, Del. – Governor Carney on Thursday presented his Fiscal Year 2020 Recommended Budget, sending the General Assembly a plan that will make important investments in Delaware’s economy, public schools, and quality of life.

“We presented a responsible budget plan today that makes investments to improve our economy, strengthen our public schools, and protect Delaware’s unique quality of life,” said Governor Carney. “This plan makes significant investments in our schools to help low-income children and English learners succeed and make progress in closing our opportunity gap. We’ll also continue to make important one-time investments in environmental protection, and our infrastructure. And we are proposing to set aside $92 million in savings, to help prepare for years when our revenue trends downward. This is a balanced, responsible plan that I look forward to discussing with members of the General Assembly.”

“The Governor has presented a recommended financial plan that targets resources toward issues that are important for all Delawareans, including our schools, our economy, and our environment – while setting aside substantial reserves should our revenues weaken in future fiscal years,” said Mike Jackson, Director of the Office of Management and Budget. “I look forward to working with the Joint Finance Committee, the Bond Bill Committee, and the entire General Assembly over the next few months to craft final appropriations legislation for Fiscal Year 2020.”

 

Strengthening Delaware’s Economy

•  Strategic Fund: $12.5 million for job creation incentives administered by the Division of Small Business
• Research Collaborations: $8.6 million to support research collaborations at the University of Delaware and Delaware State University that leverage significant federal investment
• Delaware Prosperity Partnership: $2 million to support the Delaware Prosperity Partnership, which markets Delaware to businesses. Private contributors have raised more than $1 million to match public funding
• Higher Education Economic Development Fund: $15 million to support investments and economic development initiatives at higher education institutions
• Transportation Infrastructure Investment Fund: $10 million to improve public infrastructure to support job-creating economic development projects
• Capital Transportation Plan: $3.2 billion through 2025 to modernize Delaware’s transportation system

Improving Our Schools for all Delaware Children

• Opportunity Funding: $60 million over three years will be devoted to weighted funding for low-income students and English learners
•  Investing in Educators:
  •  $20 million – 2% pay increase for public school educators and $1,000 flat increase for non-educators
  • $500,000 – Expand the High Needs Educator Student Loan Payment Program
• Investing in the Classroom:
  • $1 million – Yearlong residencies to prepare incoming teachers and improve retention in high-needs schools
  • $850,000 – DE Literacy Plan – statewide professional development and instructional supports
  • $560,000 – Additional middle school math coaches
• Partnering with Higher Education:
  • $15 million – Funding for the Higher Education Economic Development Investment Fund to supplement investments that Delaware’s institutes of higher education are making to improve job growth and economic development in the State

Protecting Our Quality of Life

• Open Space and Farmland Preservation: $20 million to continue investments to preserve open space and farmland across Delaware
• Clean Water: $10 million in state funding to help upgrade clean water and drinking water infrastructure
• Beach Preservation: $5 million in state investments to leverage additional federal funding
• Addressing the Drug Use Epidemic: $1.8 million for continued support of the recommendations of the Behavioral Health Consortium
• Ensuring Continued Access to Care for Our Children: $3.2 million in additional funding for the Children’s Health Insurance Program (CHIP) to offset the cut in federal share
• Assisting Seniors with Maintaining their Health: $1.8 million for Aging services volume growth
• Supporting our Non-Profit Service Providers: $2 million for an increase for those vendors serving adults with disabilities and $3.8 million for a Purchase of Care provider increase

Long-Term Financial Sustainability

• Based on Executive Order 21, the amount available for the operating budget is calculated based on an index relative to the overall economy to help reduce budget volatility. Any revenue above the index will be directed to one-time investments and savings. Governor Carney has recommended setting aside $92.1 million over and above constitutional limits on appropriations, and limiting operating budget growth to 3.8 percent, the appropriation benchmark calculated by the Delaware Economic and Financial Advisory Council.

Investing in Our Workforce

• Investing in State Employees: $1,000 pay increase for State and district/charter non-educator employees
• Recruiting and Retaining Quality Employees: $150,000 for the First Quality Fund and $85,000 for recruitment and retention efforts
• Investing in our Workplaces:
  • $2.8 million for Carvel State Office Building improvements and renovations
  • $5 million for the deferred maintenance backlog in state facilities
  • $1.5 million for renovations to the Jesse Cooper Building
  • $850,000 for elevator replacement at the Leonard L. Williams Justice Center
• Investments in High-Needs Areas:
  • Department of Services for Children, Youth & Their Families: $2.9 million to add 34 new caseworkers in the Division of Family Services to bolster child welfare investigations
  • Department of Labor: $798,400 to add 9 new staff members in the Labor Law Enforcement section and in the Anti-Discrimination section

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Cements $4.2 billion state budget with $49 million supplemental appropriation for one-time bonuses

 

DOVER, Del. – On Thursday, Governor John Carney signed Senate Bill 235 – the Fiscal Year 2019 Appropriation Act. This budget, which received final passage by the General Assembly this week, provides a balanced $4.2 billion financial plan that makes investments in Delaware’s economy, workforce and public schools.

The supplemental budget, Senate Bill 236, passed today in the Delaware House, appropriates funds to provide a $500 one-time salary supplement to full-time and part-time employees, as well as supplements to pensioners and one-time funded priority projects.

“When we presented our budget proposal in January, we were focused on making responsible decisions, using one-time revenue for one-time investments, and helping keep our state competitive. The budget I signed today accomplishes those goals,” said Governor Carney. “This is a responsible budget that will invest in our highest-needs schools, and help us recruit and retain teachers where they’re needed most. We are making new investments to confront the opioid crisis, and giving state employees a well-deserved raise. I want to thank members of the Joint Finance Committee and the entire General Assembly for their efficient work on this budget, and for making responsible decisions that will help us continue to address our long-term, structural challenges.”

“This year’s budget process was unlike any other in my 42 years in government and should serve as an example for subsequent General Assemblies,” said Harris McDowell, co-chair of the Joint Finance Committee. “The surplus has been headline news since late last year – and rightly so – but this year was also defined by a spirit of cooperation and an attention to detail that should make all Delawareans proud. Thanks to the diligent work of the Joint Finance Committee, we completed this budget in record time and passed a final version that faithfully mirrors the priorities and values of this state. It is responsible, sensible, and fair and I want to once again thank my colleagues on the Joint Finance Committee, co-chair Melanie George Smith, and all of our elected officials that worked so hard to get us across the finish line today.”

“My colleagues on the Joint Finance Committee worked hard in a bipartisan fashion to ensure that we used the taxpayers’ dollars in a fiscally responsible way,” said Representative Melanie George Smith, co-chair of the Joint Finance Committee. “We have been able to meet our core obligations and provide vital services that Delawareans rely on, while restoring funding we were forced to cut in more difficult years and putting funds in reserve for future years. This spending plan is a testament to responsible budgeting.”

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Highlights of the Fiscal Year 2019 Budget:

 

RESPONSIBLE INVESTMENT

• Limits operating budget growth to 3.99%
• Sets aside over $46 million by only appropriating 97% of available revenue
• Funds long-term liabilities such as pensions and debt service
• Funds “door openers” such as:
  • $20.9 million for school enrollment growth
  • $8.8 million for quality child care for more children
  • $3.0 million to ensure fair elections
• Generates over $5 million in savings in areas such as energy, fleet services and restructuring of the Department of Education

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BETTER SCHOOLS FOR ALL DELAWARE CHILDREN

Investing in Educators 

•  $10.2 million for annual salary step, plus a 2% general salary increase for educators statewide

Investing in Early Education

•  $3.8 million to fund growth in Delaware’s early learning centers through the STARS program

Investing in High-Needs Schools

• $6.0 million to expand the Opportunity Grants program, with targeted investments into schools with high percentages of students at the poverty level and/or English Language Learners (ELL) students

Investing in the City of Wilmington

• $1.5 million for the Christina School District schools located in the City of Wilmington

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INVESTING IN OUR WORKFORCE

Investing in State Workers and Educators:

• $1,000 annual raise for state workers
• 2% raise for teachers statewide, on top of annual step increases
• $500 one-time bonus for all state employees
• $400 one-time supplement for all retirees

High Needs Area – Public Safety:

• Funding for second year of correctional officer raises to $43,000 starting salary
• $3.6 million for implementation of correctional officer career ladder
• $2.3 million to fund implementation of the Department of Correction Independent Review recommendations
• Establishment of a dedicated Special Operations Response Team (SORT) unit in the Department of Safety and Homeland Security.

High Needs Area – Children’s Services:

• $4.2 million to add 30 new casework staff and contractual support in the Division of Family Services to bolster child welfare, abuse and neglect hotline investigations
• $2.0 million to add 29 new staff members in the Division of Youth Rehabilitative services to meet staffing needs in six secure facilities, and reduce mandatory overtime

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A HEALTHIER DELAWARE

Investments toward improving Delawareans’ health:

• $1.4 million to expand substance abuse treatment
• $3 million to implement recommendations of the Behavioral Health Consortium Report
• $4.6 million for contractual increases for provider partners providing services to those with disabilities
• $285,000 to expand resources for substance-exposed infants
• $2.0 million in prescription assistance for Delaware seniors and $850,000 to support Senior Nutrition Services

 

WILMINGTON, Del. – Governor John Carney on Tuesday issued the following statement on the Joint Finance Committee’s vote to appropriate only 97 percent of available revenue this year and conserve surplus revenue:

“Delaware has a tradition of fiscal responsibility, and I want to thank members of the Joint Finance Committee for their vote today, which shows restraint, and a commitment to making responsible, long-term decisions about our finances. On our current pace and without action, our spending needs will outgrow our ability to pay for them. That’s why 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. Today’s vote is a major step toward that commitment and I look forward to working with the entire General Assembly through this session to ensure this additional surplus revenue is set aside. Thank you to members of the Joint Finance Committee for their partnership in this effort.”

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Governor Carney’s Statement on Budget Smoothing Report

WILMINGTON, Del. – Governor John Carney and the co-chairs of the General Assembly’s Joint Finance Committee, Senator Harris McDowell and Representative Melanie George Smith, released the following statements Monday on the latest revenue estimates from the Delaware Economic and Financial Advisory Council:

“We’ve been focused since I took office on limiting spending growth, on directing one-time revenue into one-time investments, and on making sure we don’t spend beyond our means. These new estimates don’t change our priorities,” said Governor Carney. “The fact remains that our spending needs over the next several years will outgrow our ability to pay for them. If we fail to show restraint, we are setting ourselves up for difficult budget challenges next year or the year after that could require us to cut the very programs we’re funding this year. Over the next two weeks, we will work with chairs of the Joint Finance Committee on a sustainable budget plan that makes important investments but conserves resources, and sets us up for the long term.”

“During the Joint Finance Committee hearings this spring we heard from a number of Delawareans advocating for support for issues such as education, substance abuse treatment, corrections and investing in our workforce,” said Senator McDowell. “Over the next two weeks we will debate these issues with the goal of producing a prudent, sustainable spending plan that limits base budget growth while addressing the needs of Delawareans for Fiscal Year 2019 and beyond.”

“We are fortunate that the DEFAC estimates have been trending upward this spring,” said Representative Smith. “As a result, we will be able to address areas of highest priority for funding. However, this does not necessarily mean that we should irresponsibly increase ongoing spending, but look to limit ongoing costs and direct surplus revenue into one-time investments or savings.”

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