Governor, legislative leaders discuss options for reducing deficit for 2004
By PATRICK JACKSON
Dover Bureau reporter
12/18/2002
Gov. Ruth Ann Minner met with Delaware's legislative leaders Tuesday to discuss what steps should be taken to cope with the state's growing budget problems, but no new proposals to cut spending or raise taxes or fees were announced.
Budget Director Jennifer "JJ" Davis said the administration would recommend more budget cuts to help cover an estimated $91 million deficit in the current budget, and to provide some surplus to carry into the 2004 budget that begins July 1.
Minner will propose a 2004 budget next month. She was not available for comment after the meeting.
Minner has ordered a hiring freeze for all but essential state jobs, and required more than $30 million in cuts, including such things as delayed purchases of replacement state police cars. Budget officials estimate they can close the gap by another $30 million by freezing future vacancies, better purchasing and providing lower reserves for unclaimed property, such as idle bank accounts, that reverts to the state.
Minner also has asked public school districts to make cuts in their budgets and give back to the state $10 million in local aid.
But legislators and budget officials said Tuesday that more must be done.
Officials said they now estimate the 2004 budget gap at $250 million to $300 million because of slumping corporate franchise fees and personal income taxes, and higher costs the state cannot control, such as its share of costs for Medicaid.
Rep. Joe DiPinto, R-Wilmington West, said Minner and lawmakers discussed the budget Tuesday, but would not elaborate. "I don't think it's appropriate to talk about them yet because, frankly, the governor is still reviewing her options," said DiPinto, who is one of two co-chairmen of the General Assembly's Joint Finance Committee, which writes the budget bill each year.
Lawmakers said they are ready to help find ways to cut money, but don't want to give up the $300,000 each member gets for street projects.
Davis said she will meet with state education officials next week to analyze what districts are proposing to give back. The request that districts return state aid pledged for this year is not mandatory.
Davis said no decision has been made whether the school aid cuts will carry into the 2004 budget.
Reach Patrick Jackson at 678-4274 or pjackson@delawareonline.com.
