State budget moves through committee in record time

It only took two days for Delaware's Joint Finance Committee to mark up this year's state budget, which calls for salary increases for state employees and boosts for pensioners.

“This was a record,” said Sen. Ernie Lopez, R-Lewes, a JFC member, about the two-day turnaround. The committee normally has six days for markups over a two-week period.

The quick turnaround, he said, shows agreement between both parties over this year's budget.

JFC members agreed with Gov. John Carney's $4.7 million budget presented in January that includes salary increases for state employees. As for pension increases for retired state workers, Lopez said, the time was right.

“I think there was a real cognizance on behalf of JFC committee members that there had not been any sort of increase for our state pensioners in close to seven years,” Lopez said. “The cost of living had increased, but their pensions hadn't. We wanted to provide an increase to help state employees who hadn't been helped in some time.”

State workers would benefit with $500 salary increases across the board, with some getting $1,000 depending on length of service. “Unlike the last time when it was a one-time bonus, this money will be placed in ongoing funds for state employees,” Lopez said.

Teachers would get a 1 percent raise, and the budget bill provides starting salaries of $15 an hour for all state employees.

Lopez said he is also pleased that direct support professionals who help with healthcare needs for many elderly or those with special needs will get an increase if the budget passes.

“This was personally one of my goals, and we really pushed through a substantial increase that comes out to about 85 percent of the funding that they asked for,” he said. “We wanted to make sure to meet the needs of those individuals.”

Through rate agreements with Medicaid and Medicare, Lopez said, the state would increase the amount of money it puts in.

Positive Delaware Economic and Financial Advisory Council numbers for May helped the committee with their spending decisions. A total of $5.2 billion was brought in, an 11 percent increase over March revenue.

While $76 million more in personal income tax came in from March to May, Lopez said, nearly $50 million in franchise tax and business fees also helped fuel the increase in revenue.

“Delaware is still a state that is a jewel in franchising, corporation fees. We really saw those numbers do well for larger corporations, and Delaware and citizens of Delaware are a beneficiary of that,” he said.

Yet to come is discussion on the bond bill and grant-in-aid bill, which could give many area nonprofits one-time operating money.

“I think the budget is going to pass. In the next 30 days, there is still a lot in play,” he said. “The door is still open to provide fiscal help from the state side to a lot of our local groups.”