The Markell Budget (Updated)
Governor Markell has unveiled his FY2011 Budget proposal, which will seek to eliminate a $254 budget deficit with $143.6 million in spending cuts and cost savers, $59.8 million in additional federal funds, $39.7 million in anticipated table game revenues and $10.6 million that is extra money in the Rainy Day Fund. Ginger Gibson of the News Journal has the few details that have been released so far:
* Savings from cuts in several departments, which includes proposals to consolidate office space and merging divisions in state agencies and better manage real estate, and otherwise make state government run more efficiently, that will save $1.1 million or more.
* No tax increases.
* Reduction of benefits for future state employees, including changes in employee contributions to the pension fund and health insurance, that will save $75 million over the next five years.
I will update this post as new details become available shortly.
Update: More details:
* The $253 million defecit will be closed entirely by cost cutting. No raising taxes or fees, and no state employee layoffs.
* There will be a renegotiation of the state’s pharmacy contracts to drive down employee health care costs.
* The Department of Natural Resources and the Department of Education will be consolidated and hours will be cut at the Smyrna rest stop and the E-Z Pass Customer Service Centers. You will no longer get your EZ Pass statements or income tax booklets by mail.
Still more details:
* No restoration of he 2.5 percent pay cut state employees received last year.
* Authorizes the hire of 90 new teachers and allow salary step increases for state workers who are entitled to them. Otherwise, salaries are frozen.
* They also plan to accomplish the $140 million in savings through smaller cuts, like eliminating funding for beaver control ($25,000), only cutting the grass every other week at the Herman Halloway campus outside Wilmington ($15,900) and reducing the hours at the Smyrna Rest Stop ($380,000).
* The Budget includes a $356.5 million proposed capital spending for construction and road projects. That includes $60 million in cash and the remainder would be funded through bond sales.
* It also includes $98.8 million in construction for public education for projects that have already been approved by various districts.
Just don’t call it a column. It’s an “article.”
LOL. No, she was pissed the other night about you calling a column an article, right?
Yep, she called it a “pet peeve.” She should be pissed about Harry Themal’s quote-mangling and non-fact checking. Being right that Beau isn’t running doesn’t make up for the fact that the NJ published a quote in error.
From my journalism classes, an article is concerned with facts, a column is not (think George Will, Mike Barnicle, Maureen Dowd and Harry Themal).
I am purposely not commenting on beaver-control…
Dear Fellow State Employee,
As I talked about in the State of the State last week, these are tough times both across the country and here in Delaware. The national unemployment rate remains at 10% and at least 48 states have significant budget shortfalls, meaning they do not have enough revenue to pay for the services their citizens have come to expect from their government.
Delaware is not immune from the budget and economic forces affecting our nation. As a result, we face another difficult budget year.
In fact, because of the national recession, projected revenues in Delaware are down by $136 million for 2010 and 2011. We have $110 million less in federal stimulus funds for the next budget than we did for the current one. Increasing health care costs impact our Medicaid and prison budgets as well as employee health care costs. More people qualify for government services like Medicaid and more students are enrolled in our fine public schools.
Despite these significant challenges, while putting together this year’s budget, we were determined to minimize the impact on people, including our hard-working state employees. We know that last year’s pay cut was very difficult.
I’ve been asked many times in recent months whether my proposed budget would include an additional cut in pay this year. The answer is no.
I’ve also been asked about increases in health care costs for state employees. Health care costs continue to increase rapidly across the country and here in Delaware. Still, I have proposed in this budget that employees be “held harmless” this year for any increase in rates voted in by the State Employee Benefits Committee. At the same time, we do propose savings related to health care and pension benefits for future employees.
While we are not yet in a position to restore last year’s pay cut, my proposal recommends that the 5 additional leave days remain in effect for the 2011 fiscal year. As I’ve said before, I look forward to restoring the pay cut as soon as resources allow it.
The budget also fully meets our pension obligations. This last issue is a point often lost. In Delaware, we have and will again fully fund our pension liabilities. This is not case in all other states. For example, Illinois’s pension plan is underfunded by $80 billion. You, your coworkers, and state employees who have retired do not need to worry that your pension is at risk.
I wanted you to be able to hear or read this news from me directly. Our budget is both balanced and responsible. It makes the cuts necessary to make our government more efficient, many of which came from suggestions you and your coworkers made to us. The budget maintains fiscal responsibility. It focuses education resources in the classroom. It preserves other core functions, such as state police troop strength and health care for those vulnerable families who need it. It funds those priorities that will help create jobs and grow our State’s economy.
In the end, it encourages economic growth and better allows our children to access a world class education so they can work in first class jobs. That is our mission, and is the best and only way that we will get through these difficult times and restore our state’s prosperity and promise.
Sincerely,
Governor Jack A. Markell
I believe the “Beaver Control” will involve some type of “chemical castration”
OK–so I guess I should be happy I don’t live in Illinois, less 80 billion and Blajenovich. Thank you Pollyanna.