April 10, 2009

Markell, Legislators Identify Nearly $13 Million in Additional Savings

DOVER -- Following swift action by the Senate and House this week, Gov. Jack Markell on Friday signed legislation into law that reduces the shortfall the state is facing for the current fiscal year.
 
Despite the $12.9 million of savings in the legislation, Delaware is still facing a $30.8 million shortfall in the current year and a historic $750 million deficit for fiscal 2010. Both figures could increase if revenue estimates worsen over the next two months.
 
“I appreciate the General Assembly acting so quickly to help the state save money. We still have a long way to go," Markell said. "Balancing our budget for this year and next will require significant amounts of shared sacrifice. The decisions we will have to make between now and the end of June will not be easy, but these are difficult times that demand difficult choices.  We must and will rise to the challenge.”
 
Senate Bill 69 identifies savings from several areas, including unspent money allocated for capital projects, interest from special fund accounts, funding appropriated for minor capital improvement projects at various state agencies and surplus money in the E-911 account.
 
“The next round of cuts will be harder because we may have to take money from projects that might be ready to start,” said Sen. Robert Venables, D-Laurel, co-chair of the Joint Bond Bill Committee. “ I think the hill gets a lot steeper from here.”
 
Joint Bond Bill Committee co-chair Rep. Helene M. Keeley added that while the “mini-bond bill” would not completely eliminate the fiscal 2009 shortfall, it is extremely important for the committee to remain vigilant at reverting funds wherever and whenever possible.
 
“We must continue to comb through all of our funds and look for money that we can revert to help decrease this revenue shortfall,” said Rep. Keeley, D-Wilmington South. “While $12.9 million won’t fully close the 2009 gap, it takes a sizable chunk out of the shortfall and brings us one step closer to balancing this year’s budget. Every little bit we can revert is that much less that we need to find later.”