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Governor Jack Markell Released his Recommended Budget

Posted By John Baker, Friday, January 13, 2017

Governor Jack Markell recently released his recommended budget, now Incoming Governor Carney, the Joint Finance Committee and General Assembly will work on the best final version between now and June 30th.

As always, we strive to get breaking news to you. So here are the latest 2018 Delaware State Budget resources you can use to be in the know.

DANA has been working on the financial challenges that face our Nonprofit Sector, meeting with our elected officials, engaging with the Governor Elects transition team to present the Nonprofit Sector’s perspective, and planning action now that the budget course is more clear. The Delaware Revenue Solutions Coalition (DRSC) led by DANA along with Delaware Grantmakers Association, Delaware Community Foundation, United Way of Delaware, Ability Network of DE, the UD-CCRS, and AFP-Brandywine will be issuing it’s call to action that we can all organize around at the DANA Annual Budget Update on February 17th from 9-Noon, The Joint Finance Committee (JFC) Hearings are through February (calendar here), the DANA Annual Conference is May 15th, and DANA’s Delaware Nonprofit Day is June 8th at The Mall Legislative Hall from 11am-1pm.

Key Dates:

January 31 - March 2: Joint Finance Committee Hearing begin – See link below

February 17: DANA Annual Budget Update & Advocacy Briefing 9 AM – Noon  

May 15: DANA Annual Conference with Governor Carney, U.S. Delegation and Cabinet Secretaries Invited

June 8: DANA Delaware Nonprofit Day at The Mall Legislative Hall Dover

Quick analysis:

The proposed Delaware State Budget presented to the General Assembly as House Bill 25 proposes to balance the $350 Million budget gap through $212 Million in new revenue (described in the budget presentation linked below) and Agency Base Budget Reduction cuts of $31.831 Million and Grant-In-Aid cuts of nearly $13 Million; $11 Million cut for “First Responders” and $2 Million for “Community-Service Nonprofits” (Total GIA 2017 $45.89 Mill.).  Of the Agency cuts the largest cuts are in DHSS at $9.419 Million, DSCYF (Kids) at $462,000, and DOE at $16.173 Million.  If you receive “Pass-Throughs” check them out too.  A note of good news – “Tobacco – Master Settlement Agreement” has been replenished by approximately $1.6 Million.

Secretary of Finance Tom Cook. “The revenue changes we propose adhere closely to the recommendations of the recent bipartisan revenue task force which established a blueprint for reshaping state revenues to better grow with the economy.”

In Governor Markell’s words:  Sustaining Responsible State Finances with Mix of Revenue Increases and Spending Reductions

This balanced plan takes key steps toward structurally resolving the budget deficit not only for Fiscal Year 2018, but also by better positioning Delaware for the future,” said Governor Markell

To close a $350 million shortfall and put the state on a path to sustainable budgets in the long-term, the proposal includes some increases in personal income tax by limiting deductions (we are exploring to better understand which ones) and raising the rate of the top tax bracket by 0.2 percent. In addition, the Governor recommends an adjustment to the corporate franchise tax (we also need to understand if this will impact NPOs), increasing the State assessment on realty transfer tax, and an increase in the cigarette tax. Details can be found in the administration’s budget presentation and total a $212 million increase for the coming fiscal year.

Get the Governor’s 2018 Budget Presentation and full budget HERE.

Get the NewsWorks Summary and article HERE.

Here’s the full State Budget.

Here’s the “Hot-Off-The-Press” Joint Finance Detailed Calendar of Hearings.

 

Know that DANA will be working on digesting this and engaging our Alliance…YOU!

You can always reach me at: jbaker@delawarenonprofit.org

All the best - John

Tags:  budget  Delaware  Delaware Revenue Solutions Coalition  Nonprofits  revenue 

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