Delaware's budget plans as revenue forecasts jump: 5 things to know

After a grim budget year that saw cuts to a number of programs, Delaware has a good problem this year: The state anticipates much more revenue coming in as it puts together the budget for the next fiscal year. 

Here's a quick look at some of Delaware's plans to spend your tax dollars. 

1. Anticipated revenue is way up, but it's not a sure thing

The Delaware Economic and Financial Advisory Council predicted a revenue increase of $64 million back in December. By January, when Gov. John Carney put together his $4.25 billion budget proposal, the state was expecting to have an extra $170 million (including unspent funds from the previous budget). By May, expected revenue had increased another $180 million. So all told, instead of $170 million extra, there is an expected $430 million more to spend than in the last budget. The final projections will come in June. 

This windfall, however, isn't in the bank — it's a projection. "Much of that added revenue depends on how the $1.5 trillion federal tax cuts approved in the December's Tax Cuts and Jobs Act will impact state coffers — a large unknown even to Delaware's Finance Department," reporter Scott Goss wrote. 

2. Tax hikes haven't been ruled out

In Democratic Gov. Carney's proposed budget, he recommended no tax increases. But a member of his party, House Speaker Pete Schwartzkopf, of Rehoboth Beach, didn't sound so sure about that. He noted the governor's budget is a starting point that lawmakers modify. "We still need to find a structural fix for our revenue issue," he said. 

3. There are technically some proposed cuts

But they aren't very big. The governor's plan calls for roughly $15 million in cuts, through a combination of Medicaid savings, a reduction in contracted employees, a new energy contract and job cuts in the Department of Education. The budget would create far more than that in new spending, and lawmakers may spend even more than the governor has in mind. 

4. Some leaders are calling for saving more funds for tough times

A bipartisan group that includes the Carney administration and Republican Treasurer Ken Simpler, wants to save for the future by limiting spending increases to a percentage based on economic indicators. Anything over that would go toward one-time spending projects and a reserve fund for years when revenue comes up short.  

It may be a tough sell. Democrats would have to limit spending increases more than they might like, while Republicans might balk at another part of the plan — raising more money from the personal income tax. 

5. After a deadly riot, there's an effort to improve the Department of Corrections

State leaders came under fire after a 2017 prison uprising at the James T. Vaughn Correctional Center that left Lt. Steven Floyd dead, with the Correctional Officers Association calling for changes including filling a number of vacant positions.  

The governor's budget wouldn't do that, but it does include raises for about 1,280 correctional officers at a cost of $11.1 million, with another $3.6 million for raises associated with officer promotions. It would also include $4 million in one-time spending for staff training, behavioral therapy for offenders, installation of security equipment and cameras, and and the purchase of ballistic vests. 

Reporting by Scott Goss and Matt Albright.