By Logan B. Anderson

DOVER — Delaware’s Joint Finance Committee began its nearly month-long task to create the state’s next fiscal year budget Tuesday in Dover.

The JFC is made up of lawmakers from both Houses of Delaware’s legislature. Each fiscal year, the committee gathers to review Gov. John Carney’s recommended budget and to hear from the state’s many departments, divisions, agencies and groups supported with state funds.

Tuesday’s meeting happened in person, from the JFC hearing room in the basement of Legislative Hall, and virtually.

During the first session of 2022, the budget-makers heard an overview of the governor’s proposal and heard requests from the state’s budget and finance arms along with the Delaware National Guard.

Director of Delaware’s Office of Management and Budget Cerron Cade walked the committee through Gov. Carney’s $4.9 billion budget request. The proposal, delivered last month, is 4.6% larger than the current fiscal year’s allocations.

Thanks to budget policies, enacted by Gov. Carney’s 2018 Executive Order 21, the state’s budget has grown smoothly through major revenue changes the state has faced since 2016.

“The previous practice prior to the establishment of Executive Order 21 was to spend in our large revenue years and have to cut our way out of other situations,” Mr. Cade said. “We’ve been able to level our budgetary growth.”

Because of the practice, Mr. Cade called, “budget smoothing or budget benchmarks,” the state has not had to implement any new taxes or make any severe cuts.

During his time before the JFC Tuesday, Department of Finance Director Rick Geisenberger asked lawmakers to consider making Executive Order 21 the law of the land in Delaware.

“This will codify a practice of building strong reserves in good times so the state is less reliant on budget cuts and tax increases during downturn,” Mr. Geisenberger said.

Both budget professionals credit the practice for Delaware’s positive financial standing through the COVID-19 pandemic.

Part of Gov. Carney’s budget proposal is $88.7 million earmarked for state worker compensation increases. Following the law which requires Delaware’s minimum wage to reach $15 per hour by the year 2025, some of that money will be used for those scheduled wage increases. The state’s Merit Pay Scale employees will also see a bit of a pay raise with lowest paid employees potentially getting a 9% increase and highest earners getting a 2% raise. Non-merit employees like teachers, and lawyers, will see a 2% increase in their paychecks if the governor’s proposal is approved.

The Office of Management and Budget does more than mind Delaware’s checkbook. It is responsible for maintaining the state’s vehicle fleet, facilities management and property acquisitions among other things.

On Tuesday, Courtney Stewart, OMB’s deputy director, delivered her department’s budget request and updated the JFC about some projects OMB is working on.

“OMB is getting ready to acquire the last two properties this week. So we can merge all of the properties into one parcel,” Ms. Stewart said about the new Kent County Family Court building planned for Dover. Part of the state’s fiscal plans, Family Court is working on getting two new buildings downstate — one in Kent and the other in Sussex County. Work to make way for the new Kent County Family Court building should begin in late spring or early summer this year according to Ms. Stewart.

OMB’s budget request included $250,000 for technology upgrades, $173,000 for three full-time positions in its pension office and more than $3 million in spending to maintain the state’s vehicle fleet.

The Delaware National Guard’s total budget is around $125 million. The state’s share of that is about $5 million. On Tuesday, Maj. Gen. Michael R. Berry delivered the Guard’s budget request, which included funds for recruitment incentives, physical training uniforms and other supplies and materials.

Business editor Logan B. Anderson can be reached at landerson@iniusa.org.
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