With budget bills complete, lawmakers prepare for end of session

By Matt Bittle
Posted 12/31/69

DOVER — Delaware is set to allocate $1.35 billion for capital projects for the upcoming fiscal year, a sum that far surpasses the previous high of $863 million from two years ago.

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With budget bills complete, lawmakers prepare for end of session

Posted

DOVER — Delaware is set to allocate $1.35 billion for capital projects for the upcoming fiscal year, a sum that far surpasses the previous high of $863 million from two years ago.

A total of $708 million was allocated for infrastructure and related projects in the current fiscal year, which ends Wednesday.

The bond bill is one of the three main “money bills” — key legislation that allocates funding for running state government, aiding nonprofits and performing construction.

The operating budget bill, which totals $4.77 billion in recurring expenses, plus a separate $221 million supplement for one-time items, is also the largest in state history. Gov. John Carney in January proposed a $4.71 billion budget and a $36 million supplement, along with an $894 million bond bill and $54.5 million in nonprofit funding through grant-in-aid.

The grant-in-aid bill, finalized by the Joint Finance Committee on Monday, comes to $63.2 million.

Both chambers passed the operating budget last week and, with Wednesday as the last regularly scheduled day of session, are planning to vote on the bond and grant-in-aid measures Tuesday.

Flush with unanticipated revenue over the past six months, lawmakers have sought to use that money for one-time items that avoid growing the base budget at an unsustainable rate.

Simply put, infrastructure projects and pay bonuses are not recurring, whereas ambitious programs some legislators — chiefly Democrats — would like to see are. Those ongoing costs cause problems when revenues dip, as happened just a few years ago.

Budget details and the June 30 plan

The bond bill includes $131 million to construct new Family Court facilities in Kent and Sussex counties, up from the $50 million Gov. Carney’s recommendations contained.

There’s also $15 million for a fund that doles out money to projects conducted by higher-education institutions that have an economic-development aspect, as well as $35 million for the fund used to incentivize companies to settle in the state, $20 million for suburban street repair, $65 million for Wilmington education initiatives, $45 million for clean-water projects and $15 million each for the University of Delaware, Delaware Technical Community College and Delaware State University, plus tens of millions for equipment and deferred maintenance across the state.

In all, $386 million will go to the Department of Transportation, while the Office of Management and Budget will oversee another $415 million and the Department of Education and schools will receive $181 million.

One of the biggest headliners is the $70 million included through the Community Redevelopment/Reinvestment Fund. Added to convince Republicans to support the bond bill, that money will be used for infrastructure projects throughout the state.

House and Senate Democrats will receive a combined sum of $42 million, with $28 million going to the Republicans. The caucuses will decide how to spend the totals as they see fit.

The Joint Committee on Capital Improvement approved the bond bill last week, though not without some sparks. Frustrated Democrats at times implored their GOP counterparts to convince other Republicans to support the package, an effort that was ultimately successful following negotiations both in public and in private.

Describing the $70 million as “pork” more befitting Congress than the Delaware General Assembly, Rep. Mike Ramone, R-Newark, protested that he would like to see lawmakers use some of the excess revenue to restore a senior property tax credit the legislature cut by 20% a few years ago, as well as lower the realty transfer tax. Speaking for the House GOP, he also requested that the committee increase the total allocation or at least split it evenly between Republicans and Democrats.

Those remarks drew the ire of a few members, including both the Democratic co-chair and a fellow Republican.

“I’m concerned about derailing what I think is a pretty productive bond bill,” said Sen. Colin Bonini, R-Dover, briefly entering into a heated back-and-forth with Rep. Ramone.

Co-chairwoman Sen. Nicole Poore, D-New Castle, accused Rep. Ramone of “holding this committee hostage” because he was unable to pass bills through the full legislature. In response to Rep. Ramone’s urging to give some money back to taxpayers, Sen. Poore noted that the massive infrastructure package will create plenty of jobs throughout the state and provide much-needed repairs and maintenance.

“You have an offer on the table that absolutely touches the lives of many Delawareans,” she said.

After Rep. Ron Gray, R-Selbyville, asked if the committee could add an additional $10 million to the fund, Sen. Poore agreed to remove some of the money earmarked for new Family Court buildings — a non-starter for legislators from Kent and Sussex because of the serious need for more up-to-date and secure courthouses.

“The reality is everybody has given something up in order to get to the number,” Sen. Poore said.

Though it took several days and plenty of behind-the-scenes discussions, the committee was able to come to a consensus. With their caucuses set to receive an extra $28 million thanks to the Community Redevelopment/Reinvestment Fund, Republicans agreed to support the bond bill on the chamber floors, alleviating an earlier threat from Senate Minority Leader Gerald Hocker, R-Ocean View. (Though Democrats have a majority in both chambers, the bond bill needs a three-fourths supermajority, which requires GOP votes.)

The chambers will convene Tuesday with the aim of finishing up most business. The Senate will go in Wednesday afternoon to conduct some votes and then depart, while the House may not gather in person at all that day.

Because of a quirk in state law, lawmakers will then meet virtually late at night Wednesday. The Delaware Constitution restricts the legislature from entering a special session after that date “unless the session is recalled by the Governor or the mutual call of the presiding officers of both Houses,” and so it has long been tradition for the General Assembly to remain until midnight strikes and June 30 turns to July 1.

At that point, legislators go into a special session, enabling them to return at any point over the next six months if need be. Unusually, the General Assembly is already planning to return in the fall, as the redistricting process that must be in place for the 2022 elections was pushed back this year due to delays on the federal government’s end.

Unlike past final days of session, this finale is not expected to drag on. In fact, it could be done by 12:15 a.m. Thursday.

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