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Delaware state budget

The Delaware legislature passed a $3.5 billion budget for FY2012 on June 29, 2011. The budget represents a 6.15 percent increase over state spending in FY2011.^[1]

Delaware has a total state debt of approximately $14,424,923,000, when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the budget gap. ^[2]

See also: The Delaware State Budget on State Budget Solutions

[edit] FY2013 State Budget

Delaware Economic and Financial Advisory Council says the state will have $3.6 billion to spend in FY2013, which is $61.8 million less than total expenditures in FY2012.^[4]

Gov. Jack Markell released his recommended $3.58 billion operating budget on Jan. 26, 2012 and the proposal can be found here. The budget increase spending over FY2012 by 1.025%.^[5] It does not include any tax increases.^[6]

Additions to the budget include:

• $50 million in additional funding for state employee pay and pension increases that lawmakers granted last year,
• $27 million in funding for school staffing, previously funded with federal stimulus money that is now no longer available,
• $22 million in additional spending for Medicaid to meet enrollment growth, and
• $9 million in new funding to hire teachers and other school staff to meet growth in school enrollment.^[6]

The governor also introduced a $448 million capital budget, with $213 million targeted for transportation improvements and $235 million for schools and other construction projects. Officials are proposing to use about $38 million in general fund cash for the capital budget, down from $115 million this year.^[6]

[edit] FY2012 State Budget

• See past state budgets

The Delaware legislature passed a $3.5 billion budget for FY2012 on June 29, 2011. The budget is the largest in state history and represents a 6.15 percent increase over state spending in FY2011.^[7] The operating budget bill, found here, is $76 million more than what the governor had proposed in January, which is due in part to $344.1 million in surplus tax and abandoned property revenue that materialized in the spring of 2011.^[7] Some of the surplus went to fund a $41.23 million grant-in-aid bill, funding nonprofit organizations ranging from senior centers to volunteer fire companies.^[7]

State employees received a 2 percent raise, and pensioners benefits increased 2 percent.^[7]

Medicaid

Delaware 's Medicaid costs had grown more than 140 percent over the previous 11 years to $600 million annually.^[8]

Education

The budget permits the University of Delaware to administer its nearly $14.8 million grant, rather than dictating which programs the money must fund, in exchange for the university agreeing to 15 percent less funding.^[7] The Department of Education's request totals $1,109,696,500.^[9] The request is nearly $10 million more than the department received in FY2011.^[9]

The Bond and Capital Improvements Act, totaling nearly $664 million, can be found here.

[edit] Legislative Proposed Budget

The Joint Finance Committee drafted a $3.5 billion state budget, which was sent to the full House of Representatives on June 8, 2011. That version of the budget increases spending 6.15 percent over this year's budget and spends approximately $100 million more than Gov. Jack Markell proposed in January. After Markell unveiled his proposal, the state's financial advisers predicted that the state would see $320 million more revenue than previously expected.^[10]

The Committee approved Markell's proposal to shift 10 percent of the cost of pupil transportation to school districts, saving the state $7.1 million, but it did provide $1 million to the transportation contractors.^[10]

Ann Visalli, director of the Office of Management and Budget, said the Markell administration was pleased with the bill, in part because it includes the majority of the governor's recommendations, including $22 million for early childhood education. Not everything Markell wanted was included, though, as lawmakers restored some of the cuts made by Markell earlier in the year, such as $95 monthly general assistance checks to the state's poorest residents, a 2 percent raise to state employees and retirees and increases nonprofit care provider reimbursement rates by 2 percent.^[10]

[edit] Governor's Proposed Budget

Gov. Markell presented his $3.4 billion proposed budget for FY2012. The proposed budget includes $3.2 million in cuts to employee benefits, though the governor did not specify how the state should achieve those savings. It also freezes most state employee pay, although it included a raise for 18 judges and some teachers will get contractual step increases in their salary.^[11]

[edit] Budget transparency

• See sample transparency legislation at the Sunshine Standard

See also: Evaluation of Delaware state website or Constitutional provisions regarding reading of bills

The Delaware state constitution does not provide for a review period or any length of time between when a bill is introduced and when it may be voted on, meaning that the legislature can pass a budget bill without time for citizen review.

[edit] Government tools

The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:

Criteria for evaluating spending databases

State Database	Searchability	Grants	Contracts	Line Item Expenditures	Dept/Agency Budgets	Public Employee Salary
Delaware Online Checkbook	Y	Y	N	Y	N	N
Contracts.Delaware.com	Y	N	Y	N	N	N

• Checkbook expenditures are searchable.^[12]
• Grants are viewable as an expenditure category.^[12]
• Line item expenditures are available by department.^[12]
• Awarded contracts can be viewed in the State's awarded contracts directory.^[13]
• Department and agency budgets are not available.
• Public employee salaries are not available.

[edit] Support for creation of the database

The National Taxpayers Union urged legislators in Delaware to support SB 184, which would have created a state spending transparency website.^[14]

[edit] Independent transparency sites

The Caesar Rodney Institute recently launched an independent government spending transparency website, DelawareSpends.com, which allows users to search state employee payrolls and vendor payments. Visitors to the site can also post their own data, thoughts, questions, and concerns on the DelawareSpends Forum.

[edit] FY2011 State Budget

Find the state’s FY2011 Comprehensive Annual Financial Report (CAFR) compiled by the state government here.

The state's FY2011 budget totals $3.3 billion.^[15] The House approved the budget with a 27-13 vote and the Senate by a vote of 16-4.^[15] The budget grew by 6.5%, although Gov Jack Markell said it included $48.9 million of cuts.^[15] House Minority Leader Richard Cathcart said that he was unsure how a budget that was supposed to trim spending with cuts ultimately grew by 6.5 percent.^[15]

The budget reinstates a 2.5% pay cut for state employees implemented in FY2010 to help balance the budget.^[15]

The Department of Education received $1.099 billion, which is a 0.9% increase from the prior year.^[9] It also accounts for 33% of the state's general fund spending.^[9]

[edit] Federal Funds

Delaware will get $27.6 million for education and a $48 million in added support for Medicaid from the federal stimulus passed in August 2010.^[16] The Delaware State Educators Association predicts that up to 370 positions may be restored.^[16]

Delaware did not include the federal money in balancing this year's $3.3 billion budget, so the $48 million will be in addition to the already-approved funds.^[16]

[edit] Budget Figures

FY2011 Financial Package^[17]

Budget cuts included^[18]:

• Realize full-year savings from FY 2010 statewide position reduction and eliminated an additional 525 positions in state government $9.3 million
• 10% cut to pass-through programs and instill greater accountability for the programs $1.5 million
• Maximize in-house resources and services at the Department of Services for Children, Youth and Their Families - $1.2 million
• Reduction in employee recognition expenses - $191,100
• Reduction in state agency printing and advertising expenditures - $1.4 million
• Reduction in general operating expenditures - $1.7 million
• Downsize the number of state-owned vehicles - $421,400
• Cut the State’s energy costs by implementing Executive Order 18 - $2.9 million
• Consolidate Information Technology resources statewide - $1.0 million
• Close a portion of the Multipurpose Security Building at Sussex Correctional Institution and move inmates to reduce overtime expenses - $650,000
• Move state tax filing systems from paper-based to online - $110,000
• Reduce EZPass Customer Service Center hours and automate 24/7 support services - $483,700
• Reduce Smyrna Rest Stop staffing hours - $207,900
• Reduce gypsy moth survey - $25,600
• Reduce supplies and materials funding in Department of Correction to accurately reflect need for resources - $750,000
• Reduce funding for Child Care due to reduced demand for service - $377,100
• Eliminate new wildlife habitat enhancement program conservation leases - $28,000
• Install Automatic Vehicle Locator devices in DelDOT vehicles to create operational efficiencies - $150,000
• Eliminate 4100 Continuous Feed Printer and co-locate DTI print staff at OMB - $229,000
• Eliminate state funding for State Accounting Course through the Department of Finance - $5,000
• Eliminate funding for Budget Commission - $40,000
• Eliminate funding for School to Work program - $20,000
• Eliminate printing of budget books and provide budget information electronically online and on cds - $10,000
• Reduce Maritime Exchange subsidy to reflect contribution equitable to surrounding states - $100,000
• Implement new lighting control system at DelDOT to save energy - $5,000
• Maximize resources and reduce funds needed to maintain DelDOT properties - $50,000
• Eliminate casual/seasonal funding for inland bays enforcement - $30,000

[edit] Budget Background

Delaware's fiscal year begins July 1 and ends June 30 of the following year. The state budget process begins in September when the budget office requests that each department in state government submit budget requests for the next year's budget. These requests are generally presented to the State Budget Office at public hearings held in October and November. Between November and January the Governor compiles a recommended budget which is then presented to both the House and the Senate in January.

According to the State Constitution, the Governor must present a budget which is balanced at 98 percent of the state's projected revenues. The Delaware Financial and Economic Advisory Council is charged with making revenue projections, which are made in September, December, March, April, May and June. The Governor's budget is assigned to the Joint Finance Committee. The budget bill is typically introduced and voted on during the last week in June, just before the General Assembly adjourns. ^[19]

[edit] Budget figures

See Delaware state budget (2008-2009) for more information.

The Delaware Economic and Financial Advisory Council makes revenue and expenditure estimates on which the FY2011 budget is based and which the Governor used in his Financial Overview for FY2011.^[18]

General Fund Revenue Sources^[18]

[edit] Accounting Principles

Main article: Delaware government accounting principles

The Delaware State Auditor since 1989 is R. Thomas Wagner, Jr.. Audit reports are published online.^[26]

Russell T. Larson is the Controller General. The Controller General reports directly to the Legislative Council, a joint committee comprised of the leaders of both houses of the Legislature.^[27]

The country's three major bond-rating agencies have affirmed Delaware's triple-A ratings based, in part, on the state's strong fiscal management practices. The agencies specifically cited state officials' decisions to appropriate only 98% of available revenue for the fiscal 2010 budget, which allows for a cushion if revenues fall, and the decision to maintain the Rainy Day Fund. The agencies also praised the Delaware Economic and Financial Advisory Council for its revenue forecasts.^[28]

[edit] Stimulus

Delaware has received $0.48 billion in federal funding.^[30]

[edit] Public Employees

Main article: Delaware public employee salaries

Main article: Delaware public pensions

According to 2008 Census data, the state of Delaware employed a total of 31,994 people.^[31] Of those employees, 23,424 were full-time employees receiving a net pay of $97,842,620 per month and 8,570 were part-time employees paid $12,035,914 per month.^[31] More than 39% of those employees, were in education or higher education.^[31]

The 17,700 state employees not involved in education are slated for a pay freeze in FY2012.^[32]

[edit] See Also

• Delaware taxpayer-funded lobbying
• Delaware public pensions

[edit] External links

• State Budget Solutions, Delaware
• Model transparency legislation from the American Legislative Exchange Council is available at this link.
• Caesar Rodney Institute
• Delaware Office of Management and Budget
• Delaware General Assembly
• Delaware state site

[edit] Additional reading

• Information on Delaware's Budget Development
• FY 2009 Budget, as enacted by the legislature at the end of June 2008.

[edit] References

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