DOVER, DELAWARE – Delaware state agencies have so far spent 70 percent of the $927 million the state received in federal CARES Act funding, State Auditor Kathy McGuiness said today.

“Delawareans deserve to know exactly where that federal money is being spent and how it is helping them as they struggle with the effects of the COVID-19 pandemic,” McGuiness said. “That’s why I developed a CARES Act Fund Tracker on my website – to let taxpayers see a breakdown of how much money each state agency has received.”

As of Feb. 19, 2021, $650.52 million has been spent, which represents an increase of about $12 million over the previous week.

In March 2020, the federal government passed the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provided payments to state and local governments as they navigate the impact of the COVID-19 pandemic. Based on its population, Delaware received $927.23 million.

The CARES Act Fund Tracker can be found on the Auditor’s Office website here. The site is updated each Monday.

Learn about the Delaware Auditor’s Office at https://auditor.delaware.gov.

Contact: Alaina Sewell, Executive Assistant, Alaina.Sewell@delaware.gov, 302-857-3931

DOVER, DELAWARE – State Auditor Kathy McGuiness released a special report today showing that Delaware’s Department of Corrections (DOC) could potentially have saved $44.1 million over seven years on prison prescription drug costs.

“Inmate healthcare and pharmacy services is one major expense for DOC that is paid for with state taxpayer dollars,” McGuiness said. “As a licensed pharmacist, I felt it was important to look into how much DOC was spending on prescription drugs – and what I found astonished me.”

DOC has contracted with a private company called Correct RX (CRX) since 2014 to provide pharmacy services for the state’s approximately 4,900 inmates. McGuiness and her team examined DOC’s contract with CRX, as well as how much DOC spent on pharmacy services during fiscal years 2019 and 2020.

“As we reviewed the contract between DOC and CRX, we noticed that the contract was not detailed enough to tell us what pharmacy services would be purchased or provided,” McGuiness said. “Furthermore, a review of DOC’s spending in this area revealed that resources were not being used efficiently.”

McGuiness and her team contacted the state’s group purchasing organization, Minnesota Multistate Contracting Alliance Infuse (MMCAP Infuse), to see if DOC could benefit from their specialized purchasing contracts, as other state agencies have.

“We found that DOC could have saved up to $44.1 million since 2014 by using MMCAP Infuse’s contract services,” McGuiness said. “That’s nearly half of DOC’s pharmaceutical spend – and it’s an enormous amount of taxpayer money that could have gone to other programs.

“DOC’s goal in this area should be providing quality healthcare to inmates at a reasonable cost,” McGuiness continued. “My special report shows that goal is achievable, and my hope is that DOC will consider my two detailed recommendations to do exactly that.”

To read McGuiness’ new special report, titled “Millions in Pharmaceutical Savings are Achievable Within Delaware’s Correctional Facilities Without Compromising Services,” click here.

Learn about the Delaware Auditor’s Office at https://auditor.delaware.gov.

Contact: Alaina Sewell, Executive Assistant, Alaina.Sewell@delaware.gov, 302-857-3931

DOVER, DELAWARE – Delaware state agencies have so far spent about 69 percent of the $927 million the state received in federal CARES Act funding, State Auditor Kathy McGuiness said today.

“Delawareans deserve to know exactly where that federal money is being spent and how it is helping them as they struggle with effects of the COVID-19 pandemic,” McGuiness said. “That’s why I developed a CARES Act Fund Tracker on my website – to let taxpayers see a breakdown of how much money each state agency has spent.”

As of Feb. 12, 2021, $638.56 million has been spent. Since Thanksgiving, Delaware has been spending an average of about $11 million per week.

Other highlights:

• At least three state agencies – the Department of Education, the State Housing Authority and the State Fire Commission – have spent at least 95 percent of their allocated funds.
• The Department of Labor has spent about 85 percent of its $197.47 million allotment.
• The Office of Management and Budget has spent about 9 percent of its $149.26 million allotment.

In March 2020, the federal government passed the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provided payments to state and local governments as they navigate the impact of the COVID-19 pandemic. Based on its population, Delaware received $927.23 million.

The CARES Act Fund Tracker can be found on the Auditor’s Office website here. The site is updated each Monday.

Learn about the Delaware Auditor’s Office at https://auditor.delaware.gov.

Contact: Alaina Sewell, Executive Assistant, Alaina.Sewell@delaware.gov, 302-857-3931

DOVER, DELAWARE – State Auditor Kathy McGuiness complimented the Delaware Department of Natural Resources and Environmental Controls (DNREC) today for having another clean financial audit of its Hazardous Substance Cleanup Fund.

“This is the second year in a row that DNREC has had a clean audit of this fund, which carries a balance of just over $22 million,” McGuiness said. “It’s always encouraging to see government agencies accounting well for the tax money they are entrusted with.”

The Cleanup Fund primarily receives revenue through a surtax on certain petroleum products in the state. The fund was established in 1990 to protect the public health and welfare of Delawareans and the environment of the state from releases of hazardous substances. The annual audit is mandated by the Delaware Code.

“I love being able to highlight examples of government working correctly,” McGuiness said. “Congratulations to DNREC for its stewardship of tax money in this fund.”

The new DNREC financial audit of the Hazardous Substance Cleanup Fund can be found on the Auditor’s Office website here.

Learn about the Delaware Auditor’s Office at https://auditor.delaware.gov.

Contact: Alaina Sewell, Executive Assistant, Alaina.Sewell@delaware.gov, 302-857-3931

DOVER, DELAWARE – State Auditor Kathy McGuiness released a report today showing that Delaware could realize more than $43 million in annual tax revenue from the regulation and taxation of legal marijuana.

In a new special report titled “Millions in Revenue Anticipated from Legalizing Marijuana in Delaware,” McGuiness said that regulating the sale of marijuana for adult use would also allow for new business formation and the creation of more than 1,000 new jobs over five years.

“Forty-three million dollars in state tax revenue would be a boon to Delaware’s coffers,” McGuiness said. “That money could be used to plug budget holes in the short term and would continue to provide revenue for all kinds of important initiatives in the long term.”

The special report uses publicly available data to determine that legalizing marijuana use for adults 21 and older would create a $215 million industry in the state. It assumes a reasonable 20 percent excise tax to reach the $43 million figure.

“Statistics show that public opinion on allowing recreational marijuana for adult use has changed dramatically in the last few years, with a majority of Delawareans now supporting it,” McGuiness said. “The prohibition on marijuana has only led to a robust black market, which could be minimized by responsible and thoughtful legalization.”

The report also examines other states’ current or proposed regulatory frameworks for taxing the cultivation and sale of recreational marijuana.

“With neighboring states either legalizing it or considering doing so, taking action now is the only way to prevent Delaware from being at a competitive disadvantage in the future,” McGuiness said. “The First State cannot and should not be the last state to approve legalization in the region.”

The new special report can be located on the Auditor’s Office website found here.

Contact: Alaina Sewell, Executive Assistant, Alaina.Sewell@delaware.gov, 302-857-3931

Learn about the Delaware Auditor’s Office at https://auditor.delaware.gov.

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