By J.L. MILLER, The News Journal
DOVER -- Gov. Ruth Ann Minner's proposed $3.4 billion operating budget for the coming fiscal year spares residents any tax or fee hikes but leaves state employees without pay increases until at least the summer of 2009.
Her proposed capital spending plan of $473.3 million will fund school construction projects in all three counties, but a lack of additional funding could stretch some projects out over four years instead of the usual three.
Critical road construction projects and a sought-after Sunday bus service pilot program also will receive funding, as will Minner's key initiatives, such as full-day kindergarten and health-related programs.
The financial package she presented Thursday to the General Assembly can be described in one word: tight.
"My proposed budget growth is less than 4 percent, which doesn't allow all the items we would like to fund, but it does allow some new initiatives while we also continue services that are vital to the people of our state," Minner said.
Her proposal means state workers will have to tighten their belts.
"State employees are always the first to take it on the chin," said Michael Begatto, executive director of the American Federation of State, County and Municipal Workers Council 81.
Begatto, whose union represents about 4,000 state employees, took some comfort in Minner's pledge that if revenues improve in the spring, her top priority will be to see whether she can give a boost to state workers. It also helped that Minner's budget spares state employees any increase in their health insurance premiums for the third consecutive year.
"Thank God it wasn't no raise and increases in health care premiums. We've had those in years under the du Pont administration, so there is some light," Begatto said, referring to former Gov. Pierre S. du Pont.
The proposed operating budget is 3.81 percent greater than the budget for the current fiscal year, which runs through June 30. That budget contained a package of tax and fee increases phased in over 2007 and 2008.
Most of the new spending -- 93 percent -- is attributable to higher costs for Medicaid, increases in public school enrollment and other essential services.
That leaves just 7 percent for discretionary spending.
Even so, Senate Minority Leader Charles L. Copeland, R-West Farms, said Minner's proposal shows that she should have followed the Senate Republicans' call last year for a flexible hiring freeze.
"We added 500 new positions to the government last year. It cost $25 million," he said. "That's why last year our caucus said we've got to start saving now."
The financial package is constrained by declining revenues and uncertainty over how long that decline may continue.
The budget and bond bills are based on revenue estimates that were prepared in December by the Delaware Economic and Financial Advisory Council, which next meets in March.
If the state's revenue forecast takes a severe dip, Minner's spending plan will have to be reworked, said Sen. Nancy Cook, D-Kenton, co-chairwoman of the budget-writing Joint Finance Committee. The Joint Finance Committee will start its six-week review of the budget next week.
"My concern is this was built on December's DEFAC [estimates]," Cook said. "Is it possible that there's going to be more cuts? Yes."
Senate Majority Leader Anthony J. DeLuca, D-Newark East, said he was concerned that state workers and pensioners may have to go without an increase, but he said his caucus would be "working closely with the administration" to see if any increase might be possible.
Minner's proposed capital budget calls for $239.6 million for schools, libraries and the like, and $233.7 million for transportation-related projects.
There is $132.68 million for public education projects, including projects in the Cape Henlopen, Colonial, Appoquinimink, Caesar Rodney, Capital, Smyrna, Lake Forest, Milford and Brandywine school districts.
Funding also is recommended for renovations of the water system at Sussex Technical High School and construction of a new Sterck School for the Deaf.
In addition, Minner is recommending $1 million to plan a new psychiatric hospital on the Herman Holloway Campus of the Department of Health and Social Services, along with $500,000 to implement recommendations of the Governor's Task Force on the Delaware Psychiatric Center.
This year's capital spending plan contains just $62.2 million in general tax revenue, nearly $16 million less than last year's total -- which was the smallest such transfer in recent years.
A total of $165.44 million is proposed for road work, including improvements at the I-95-Del. 1 interchange, Del. 896 and U.S. 301.
PLAN HIGHLIGHTS
Among the high points of the operating and capital budgets:
$9 million for the Kent County Court Complex for expansion and renovation.
$4.5 million to complete enhancements to the state's 800-megahertz emergency radio communication system.
$835,400 for two new Superior Court judges and additional staffers.
$695,000 for 10 new state troopers. That funding, coupled with a recently signed cost-sharing agreement with Sussex County, ultimately will exceed the administration's goal of 680 troopers in the next several years.
$8.5 million to support libraries throughout the state, including projects at the Dover, Milford and New Castle public libraries.
$5 million for low-income housing units.
$250,000 for the Delaware Emergency Mortgage Assistance Program, which provides loans to eligible families facing financial hardship.
$2.15 million to continue the beach preservation program. The money will be used for the Fenwick Island project and general dune maintenance.
$20 million through the continued dedication of earmarked revenue for farmland preservation and open-space programs.
$8 million to the Delaware Strategic Fund to support economic development efforts.
$16.2 million to continue implementing recommendations of the Delaware Advisory Council on Cancer Incidence and Mortality.
Increased funding to implement full-day kindergarten in 11 school districts and nine charter schools; to support 43 math specialists and 119 reading resource teachers statewide; and to fund the SEED scholarships that allow Delaware high-school graduates to attend Delaware Technical & Community College for free.
