By Joe Rogalsky, Staff writer

DOVER - About 75 supporters gathered outside Legislative Hall Tuesday to advocate giving state workers a pay boost.

Gov. Ruth Ann Minner, a Democrat, did not include public-employee raises in her proposed 2003 budget. If extra money came into state coffers, she said she would make the pay hikes the first priority.

Sagging state revenues have imperiled potential raises.

The latest estimates put the state $50 million below the proposed 2003 spending level. A 2 percent raise for state employees would cost about $22 million.

"This year, we are going to be short," Gov. Minner said.

"We do not have the money to fund the budget I introduced in January. We will continue to work to help the General Assembly have a balanced budget on June 30."

State workers should not be the ones to suffer, said Michael A. Begatto, executive director of the American Federation of State, County and Municipal Employees' Council 81, which represents 3,200 public employees in Delaware.

"We do not want the budget balanced on our backs," Mr. Begatto said.

"We are working closely with the legislature to get them to look for additional ways to raise revenue."

Eugene Hanks, who works at the Delaware Hospital for the Chronically Ill in Smyrna, said public employees have earned a pay hike in the 2003 budget. State workers' last raise was a 2 percent increase last year.

One money-raising possibility would be to tap into the state's "rainy day" reserve fund, which Gov. Minner opposes.

Many at the rally carried umbrellas to show support for the idea, but Mr. Begatto conceded it was unlikely to be implemented.

Another possibility, he said, would be to increase the tax on tobacco products.

House Speaker Terry R. Spence, R-Stratford, said the workers deserved raises between 3 and 5 percent, which would cost the state $33 million to $55 million. The pay hikes should not be delayed, he said.

"Instead of waiting until the end of the budgeting process to see if state employees can get a raise, wouldn't it be nice if the governor put you first for a change?" Rep. Spence asked the audience.

Rep. William A. Oberle Jr., R-Beecher's Lot, said he and Minner administration officials are working on legislation to generate $30 million to $40 million in new revenue from slot machines.

The bill, which will likely be introduced within two weeks, would permit slot machine venues to have longer hours of operation and allow for more "creative machines," Rep. Oberle said.

A way for lawmakers to free up cash for pay raises would be to allow Gov. Minner to spend more than 98 percent of revenues in 2003. State law limits spending to 98 percent of state money without legislative authorization.

"It's a very viable option, and we need to take a look at it," Rep. Oberle said. "That's one rational approach."

Gov. Minner said she opposes spending more than 98 percent of state revenues.

If public employees do not receive raises, the issue could come to haunt Gov. Minner if she runs for re-election in 2004.

Betty Bryant, a state-employed nurse in Newport, said she would not support Gov. Minner if public workers were denied salary increases.

When Gov. Minner's name was mentioned during the rally, some in the crowd booed.

"(State workers) put Gov. Minner in office," Ms. Bryant said.

"I was one of those supporting her. If we do not get raises, I will be one of those opposing her."

Joe Rogalsky can be reached at 741-8226 or jrogalsky@newszap.com.