State workers in Delaware to get raises
Published: Jun 18, 2002 - 11:57:20 PM EDT
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By Joe Rogalsky, Staff writer
DOVER - Rosy state revenue forecasts will mean a 2 percent pay raise for state workers and no hike in the cigarette tax, Gov. Ruth Ann Minner confirmed Tuesday.
The plan to generate more money from the state's video lottery venues by allowing longer hours and more machines also has been scuttled, she said.
"We can cover the budget and give state employees a pay raise without a tax increase," Gov. Minner said. "We don't need to change the formula for slots."
The slots and cigarette tax proposals were made when the state was facing an approximate $50 million shortfall.
The Delaware Economic and Financial Advisory Council reported last month that revenues would pick up enough to cover the gap and Monday forecast that the state is expected to have $49.3 million more for the 2003 budget.
Gov. Minner said during her January State of the State speech that funding workers' raises would be her first priority if new money became available.
Michael A. Begatto, a union representative for state employees, said DEFAC's positive report should lead to boosts in workers' pay.
"It gives me confidence that the governor will fulfill her commitment," Mr. Begatto said. "I am sure she will work to ensure that occurs."
Sen. James T. Vaughn, D-Clayton, predicted that the Joint Finance Committee, which he chairs, will support adding pay raises to the state's budget.
The JFC crafts the budget that the General Assembly votes on and sends to Gov. Minner.
The 2 percent raises will cost the state $22.1 million, Gov. Minner said. Every employee will be guaranteed at least a $600 boost in their paycheck.
In addition to the raises, Gov. Minner said the new projected revenue would spread out in several ways, including:
ä $15.3 million to the Bond Bill to fund school referendums and cost overruns at the Court of Chancery building in Sussex County;
ä $9 million to cover cost increases not included in the proposed budget;
ä $2.5 million for the Riverfront Development Corp. in Wilmington;
ä $1.2 million for grant-in-aid awards to paramedics and fire companies.
The proposed 35-cent-per-pack increase in the cigarette tax did not have legislative support, Gov. Minner admitted.
"There was no will in the General Assembly," she said. "Don't ask me why. Maybe it had something to do with it being an election year."
Though the governor ruled out raising the cigarette tax this year, she did not take the idea off the table for next year.
Money for programs recommended by the Cancer Task Force could be generated by upping the tax, which sits at 24 cents per pack, Gov. Minner said.
"We can revisit this next year if we want to," she said. "We'll get our programs in place and know exactly what we want to do in January. We'll work with (lawmakers) when they come back."
Joe Rogalsky can be reached at 741-8226 or jrogalsky@newszap.com.
