Other cuts may help close $95 million gap in budget
By PATRICK JACKSON
Dover Bureau reporter
11/14/2002
Gov. Ruth Ann Minner imposed a hiring freeze Wednesday on all but the most essential state jobs, and detailed new budget cuts that could save $11 million needed to help close a projected $95 million deficit in the current budget caused by declining state revenues.
The hiring freeze, which should save about $13 million this year, probably will be extended into the next budget, which begins July 1, Minner said. She imposed a hiring freeze last March when the state faced a similar deficit. It was lifted July 1.
"The 2004 budget looks even worse than this one," Minner said. "It's tough, but we're getting by with who we've got, and we may have to keep that up."
State Budget Director Jennifer "JJ" Davis has said that lawmakers could face a $160 million deficit in the 2004 budget because of falling revenue estimates and the fact that the state probably won't have much money left over in June to carry over into the next budget year.
The hiring freeze was part of Minner's fourth announcement of spending reductions since budget forecasters in September said state revenues would come in $95 million below the estimates used to prepare the $2.3 billion budget the General Assembly passed in late June. Personal income and corporate franchise tax receipts are down because of the sluggish economy and slumping financial markets.
The hiring freeze and the $11 million in other cuts Minner announced Wednesday would bring to $60 million the savings expected from spending reductions, consolidated purchasing and debt refinancing she has ordered since September.
Minner said she will not announce more cuts until she can meet with General Assembly leaders to discuss more spending reductions, or possible fee and tax increases, to cover the remaining $35 million deficit in the 2003 budget.
"What we do depends on what the General Assembly is willing to look at," she said. "I don't think they want to cut services to citizens any more than we do."
Budget changes Minner announced Wednesday included:
• Saving almost $1 million by not replacing 47 higher-mileage Delaware State Police cars. She said 16 extremely high-mileage cruisers would be replaced.
• Cutting $818,100 from the Department of Services for Children, Youth and their Families by ending the placement of some youths in out-of-state treatment facilities.
• Using $9 million to pay for state operating costs rather than keeping that money in reserve to pay people who claim stock holdings thought to have been abandoned.
• Saving $3 million by refinancing Department of Transportation debt at lower rates.
• Cutting $1.1 million from the Department of Correction, including almost $400,000 by not replacing inmate uniforms unless they are completely worn out.
Mike Begatto, executive director of the American Federation of State, County and Municipal Employees, said his 4,000 members are not happy about a hiring freeze, which can make their jobs more difficult as they cover for vacant positions. But state workers are pleased the state is not laying off employees.
"We haven't laid off yet, and this governor does not want layoffs," Begatto said. "If you look at what's happening in other states and in the private sector, we're a lot better off because, while we might not make the most, our members still bring home bread and butter."
Gregory Patterson, Minner's spokesman, said savings from the hiring freeze could grow as more employees retire or leave for other jobs.
"That $13 million is a very conservative number," Patterson said. He said the cuts are based on the 1,200 current full-time vacancies in executive departments. The state budget includes more 16,000 positions, not including local schoolteachers.
"That number is likely to grow as people leave, but we wanted to base the savings on a real number, so we went with what we had," Patterson said.
Minner said that although many of the most recent cuts involve departments such as state police and corrections, she will not allow public safety to suffer because of the budget crunch.
For example, she said if state police can show a need for additional cars, they will be purchased.
"Before I approved this cut, I was told the state police could live with it," she said. "But I will not jeopardize the safety of Delawareans by having the state police driving worn-out, unsafe cars. The three most important things to troopers are cars, bulletproof vests and guns, and we will make sure those needs are met."
Deputy State Police Superintendent Tom Marcin said the fleet is in good shape because of investments made in it when the state budget was healthy, and because of maintenance programs.
"Our fleet is in better shape than it's been in for years," he said. "We think we can weather this cut without a problem."
Correction Department officials said they also will be careful as they implement planned reductions in overtime for probation and parole officers, which is scheduled to save about $251,000. Those savings will come through closer review of overtime requests.
"We have not eliminated overtime; we are just trying to control it," Correction Department spokeswoman Beth Welch said. "If a community correction officer says they have to see someone at a specific time, we will allow that because we aren't going to let people go unsupervised."
But the cuts mean that, in some cases, residents may need to wait longer for some services because of vacancies, or may remain on waiting lists for state programs for longer periods.
Mike Shahan, director of the Division of Motor Vehicles, said his customer service operation now is in good shape because of positions he was able to fill last spring and summer after Minner lifted the hiring freeze she imposed in March. He said he moved quickly to fill positions at DMV offices and at the department's vehicle inspection lanes.
"If the freeze does go into next year, it could hurt us as people leave, either for the private sector or to fill other openings in state government," he said. "But for now we are in good shape."
Allison Taylor-Levine, a spokeswoman for the Department of Health and Social Services, said $44,000 in cuts to the division providing services for senior citizens and adults with physical disabilities will add to waiting lists for people seeking attendant, personal care and housekeeping services. Those cuts were part of $768,000 in cuts to the department's budget announced Wednesday.
"It's hard to say how many people will be affected because people are coming on and off those lists all the time," she said. "But it will increase the waiting lists."
The decision to reduce the placement of troubled youths in out-of-state treatment programs means 30 or 40 youths will receive treatment in Delaware, said children's department spokeswoman Trish Hearn.
Reach Patrick Jackson at 678-4274 or pjackson@delawareonline.com.
