By PATRICK JACKSON
The News Journal 05/17/2005
As state budget forecasts continue to put more money in the state's bank accounts, Eileen Redden wants politicians to pause before they fight over cutting taxes or approving more spending.
"There are a lot of retired people moving to my area because of the low taxes," said Redden, who lives near Lincoln. "If they want to cut taxes, fine, but they should look to make sure we're taking care of the things we need first."
On Monday, the Delaware Economic and Financial Advisory Council added $94.2 million to its revenue forecast. Since December, the panel's forecast has increased by about $258.6 million -- with the bulk coming through increases in personal and corporate income taxes.
According to the council, the state will bring in about $3 billion in new money during the budget year that starts July 1. The council of economic experts from government, business and academia gives Gov. Ruth Ann Minner and the General Assembly the revenue number they are required to use to build the budget.
The council will meet again next month to give lawmakers a final revenue estimate they can use to finalize the state's spending packages and tax cuts, if the administration agrees to them.
Currently, Republicans are calling on Minner to join them in cutting the gross receipts tax on businesses. Some GOP lawmakers also are looking at issuing one-time tax rebates of up to $500 on 2004 tax returns, and Sen. Margaret Rose Henry, D-Wilmington East, is pushing for the state to adopt its own version of the federal government's earned income tax credit for low-income residents.
Rep. Deborah Hudson, R-Fairthorne, said the steadily rising economic numbers that have been resulting in the state's revenue growth are signaling that tax-cutting time is here.
"I think all options should be on the table," said Hudson, a legislative representative to the council and chairwoman of the tax-writing House Revenue and Finance Committee. "The Republican caucus has made gross receipts a priority because we first started trying to cut that two years ago. ... But when you look at these numbers, we shouldn't rule anything out."
House Minority Leader Robert Gilligan, D-Sherwood Park, said there may be a lot more money, but there also are a lot of people with legitimate requests who want a piece of it.
Finance Secretary Richard Cordrey said the administration is encouraged by the latest report, but is still cautious about cutting taxes.
"I can't think of a governor who wouldn't want to cut taxes, but that's something that we usually leave until the June numbers come in," Cordrey said. "But there are a lot of needs and right now the [Joint Finance Committee's] down in Dover figuring out how to spend all that money. ... We should see what they're going to do."
Redden says the state ought to look at putting more money into the scholarships it awards to help Delaware students pay for programs such as medical school, and to pushing ahead with Minner's plan to have full-day kindergarten programs in the state's public schools by the start of the 2008 school year.
"Half-day may have been all right in a different time, but with everything that's expected of kids now, they need the full day," she said. "And that's going to be expensive. You'll probably need to add classrooms and hire at least twice as many kindergarten teachers."
Contact Patrick Jackson at 678-4274 or pjackson@delawareonline.com.
BY THE NUMBERS
$94.2 million
Amount added Monday by the Delaware Economic and Financial Advisory Council to the revenue forecast, which is used to build the budget
$258.6 million
Total added since December -- the bulk of which came from rising personal and corporate income taxes. The final estimate will be given next month.
$3 billion
Money Delaware will bring in for the budget year that starts July 1
