July 17, 2009

Markell: FY 2010 Budget Serves State Well

The following is the text of an Op-Ed that Governor Jack Markell wrote for the July 17, 2009, edition of the Wilmington News Journal.

Earlier this month, I signed into law a budget that is responsible and balanced, and that positions our state to move forward.

We did so while maintaining core government services such as public safety, education and healthcare.

At the National Governor's Association meeting this weekend, many of my fellow governors still face budget impasses that are paralyzing their governments and putting economies at further risk. The headlines in the papers they will bring with them make clear the importance of our having completed a responsible budget in Delaware.

The challenges here in Delaware were as difficult as in any state -- we faced one of the larger deficits on a percentage basis. The national recession, growing unemployment and a corresponding increase in demand for services triggered the shortfall but Delaware is fortunate that members of the General Assembly came together to pass a budget that is hundreds of million dollars smaller than last year.

Certainly, we had our differences, with all sides actively advocating their positions. For example, my administration initially recommended a temporary 8 percent pay cut for state employees, which would have created over $93 million in savings.

State employee salaries make up about 46 percent of the operating budget, so it is difficult to balance the budget without making reductions in this area. Some legislators pledged no pay cuts for state employees and instead proposed a personal income tax increase on all Delawareans to make up for some of the lost savings. In the end, a 2.5 percent pay cut for all state employees was agreed upon, along with the de-authorization of hundreds of positions in state government and a smaller, more targeted personal income tax increase like I originally proposed, which affects only 17 percent of Delaware taxpayers.

The final budget is certainly not perfect but it represents the collective input of Delaware's elected representatives and many of its citizens. After taking office, I conducted over 60 town hall meetings to discuss Delaware's budget challenges and we took hundreds of suggestions submitted through ideas.delaware.gov. For example, we cut the size of the state's vehicle fleet. We grounded some state police aircraft and severely limited out-of-state travel.

We fought hard against the Racino owners to secure a better deal for taxpayers. We cut costs from contractors. We demanded better deals from vendors for the services and products they provide. We closed facilities.

To balance the budget and put our state on a growth path, we made tough choices. But our work cannot end with the passage of this budget. Delaware's government must continue to find ways to cut costs and create efficiencies.

We need to reduce administrative cost in our school districts, moving money from the back room into our classrooms. We need to reduce the size of our state government by eliminating programs and even departments (like my proposal to consolidate the functions of the Department of Finance).

We will focus on services that are core to government's mission. We need to look across county and local governments for ways to be more efficient and effective.

Apart from balancing a difficult budget, I'm pleased that the General Assembly passed so many important bills, including the elimination of the Delaware Student Testing Program and the launch of a pilot program to reward high-performing schools.

The General Assembly passed landmark legislation that will lead to improved energy efficiency and the increased utilization of renewable energy sources.

And the General Assembly also passed a variety of bills to protect vulnerable seniors from abuse, outlaw discrimination based on sexual orientation, get drunk drives off the road and open up government.

We've got significantly more work to do and we most certainly need to do so together, so please continue to submit your best ideas for improving government to our Webs site: ideas.delaware.gov.