Meyer keeping an eye on state revenue numbers

The Meyer administration is closely watching budget numbers after issuing warnings earlier this year of potential shortfalls.

“I think we’re going into an environment that we’re anticipating will be challenging for three primary reasons,” Meyer said during a press conference Sept. 17 at the Biden Center in Lewes.

For years, he said, Delaware has allowed expenses to increase about three times faster than revenues. “For any organization that’s not sustainable,” he said.

Past federal investment is also dwindling with slim chances that similar investment will be made by the Trump Administration, he said.

“What does that mean in terms of numbers, what does that mean in terms of a deficit for the state, we’re going to see in upcoming [Delaware Economic Financial Advisory Council] meetings starting with the October DEFAC meeting,” he said.

Meyer reserved any comment on tax increases until he has a better idea of the revenue stream.

“We’re going to see how DEFAC comes out and then make appropriate decisions based on the numbers,” he said.

And while Meyer said he believes contingency and reserve funds are good fiscal policy for businesses and organizations, he also reiterated his opinion that he is not a fan of collecting taxes to store in a fund for a future date.

On healthcare costs – a heavy driver of state expenses – he said he supports increased competition among healthcare providers in the state. But he questioned ChristianaCare, the state’s largest healthcare system, benefitting from Delaware revenue and making investments in neighboring states.

“They’re a private organization and we’re working on it,” Meyer said.

Changes to Medicaid funding are also coming, and Meyer said his administration is working to make sure people understand working requirements and other new rules that go with receiving Medicaid money.

“Any effort to identify someone who’s getting benefits who should not be, or someone not getting benefits who is rejected who is entitled to benefits, I am very open to saying, how do we make sure we get that right?” he said.