Fiscal Year 2009 Budget Proposal by Governor Ruth Ann Minner
January 24, 2008
As we enter the final year of the Minner/Carney Administration, I am pleased to have so many accomplishments we can be proud of. We will continue to fund those key initiatives that are so important to the people of Delaware in areas such as education, health, economic development, safety and the environment. Unfortunately, due to the current economic forecast, we will have to limit spending to core government services.
My proposed budget keeps growth to less than 4 percent, which doesn’t allow all the items we would like to fund, but it does allow for some new initiatives while we also continue services that are vital to the people of our state.
Today, I present to the General Assembly and the people of Delaware a proposed general fund operating budget of $3.41 billion, which represents an increase of 3.81 percent over last year’s budget. My capital budget—also known as the bond bill—is $473.3 million, with $239.6 million appropriated for public education, higher education and agency projects and $233.7 million in transportation funding.
Education
We have a number of successful education programs and initiatives already underway, one of which is full-day kindergarten. I am recommending an additional $2.6 million to support this very important initiative in 11 school districts, nine charter schools and pilot classrooms in an additional two districts.
I am also proposing $2.8 million in support of the Department of Education and Vision 2015 initiatives, which include an additional $200,000 to continue to invest in early childhood education, bringing total funding to $500,000 and an additional $250,000 to make the virtual school a reality.
We will continue our successful Student Excellence Equals Degree, or SEED, scholarship program with a recommended $689,000, and I am recommending $132.7 million for ongoing public school construction projects in 10 districts throughout Delaware, as well as the Sterck School for the Deaf.
As you know, the capital program will be particularly tight this year, but we still have critical needs.
For almost two years, Delaware Technical and Community College, key members of my Administration and members of the legislature have been working to analyze and develop a creative mechanism for funding instructional and lab facilities at the campuses. While I have not settled on any one specific proposal, we will work with the General Assembly this year to identify a funding source for the Community College Infrastructure Fund and get these key projects started.
Health
I have often touted the success of our cancer-fighting efforts through initiatives such as the Screening for Life program and our cancer treatment program for the uninsured. I recommend that we spend $16.2 million to continue funding these and other initiatives recommended by the Cancer Consortium to continue to save and improve the lives of the people in our state.
We also must continue to fund efforts to lower the infant mortality rate in Delaware. I propose $1.3 million to continue to implement recommendations of the Infant Mortality Task Force.
I have recommended we establish a health disparities registry through our health service providers and health insurance companies so we can better identify problem areas and target our efforts to address disparities in healthcare services and outcomes among minority and ethnic populations. I propose spending more than $250,000 to implement recommendations of the Health Disparities Task Force.
My recommended budget also includes $1.6 million for the Self-Directed Services program to provide in-home rehabilitative services for people with developmental disabilities.
The need for a new psychiatric center is well documented. I am therefore recommending $1 million to plan a new psychiatric hospital at the Herman Holloway Campus of the Department of Health and Social Services. I am also recommending $500,000 for further improvements to the DPC as recommended by the Governor’s Task Force on the Delaware Psychiatric Center.
In addition, I recommend nearly $2 million in Community Mental Health to expand community-based residential treatment by three group homes, with an additional $450,000 for one supervised apartment. This will offer more alternatives for patients who would otherwise need to receive services in a public institution.
Environment/Livable Delaware
We have made many accomplishments in preserving and protecting our environment over the last seven years, and I look forward to building on those successes in the year to come. To do that, I am recommending our continued commitment of $20 million per year for our farmland preservation and open space programs, which have already protected nearly 100,000 acres in our state.
Our beach preservation and replenishment programs have helped to preserve our valuable shoreline, and I propose spending an additional $2.2 million on that program in the upcoming fiscal year.
Economic Development
I recommend $8 million for our Delaware Strategic Fund, which supports economic development in our state, as well as $2 million for the Diamond State Port Corporation and $1 million to continue vaccine development research at the Fraunhofer Center for Molecular Biotechnology.
I am also proud to say that our New Economy Initiative will soon enter its fifth year, and I recommend $2 million to expand Delaware’s research base in biotechnology and life sciences, as well as to support the initiation of a regional infrastructure investment plan.
This year’s budget also includes an additional $188,000 for crop insurance to bring the total appropriation to $750,000. The appropriation is no longer one-time funding as it now is in the Department of Agriculture’s base budget. It will allow for the continued success of cost share assistance to insure Delaware’s farmers against crop damage and loss, and shore up this key component of our local economy.
Safety
The safety and security of our state and our nation has never been as important as it has become during my time as Governor. We are continually working to improve the programs and equipment we have in place to protect the people of Delaware.
This year, I recommend $4.5 million to complete enhancements to the state’s 800 megahertz emergency radio communications system. I am extremely proud of our efforts to improve this system for those serving on the front lines in case of an emergency and look forward to completing those efforts.
I recommend $695,000 to fund an additional 10 Delaware State Police troopers to protect and serve the people of our state. This funding, coupled with the recently signed agreement with Sussex County, will ultimately exceed the administration’s goal of 680 troopers over the next several years.
The expansion and renovation of court facilities in Kent County and the continuation of the program to modernize court facilities statewide are both sorely needed to keep up with the demands on our court system. I recommend $9 million for the new Kent County Court Complex and the modernization program. I also recommend funding for two additional Superior Court judges and additional court staff at a cost of $835,400 to help address increasing caseloads in our courts.
Self-Sufficiency
For many years we have heard about the need for Sunday bus service, mainly in the City of Wilmington. I am pleased to recommend funding for a pilot Sunday bus service program for select routes in New Castle County. This program is vital for those who rely on our public transportation system to get to work or access needed services in our state.
We also have families in our state who are in desperate need of low-income housing. I recommend $5 million to preserve the supply of low-income housing units for those in need. I also propose that we devote $250,000 to the Delaware Emergency Mortgage Assistance Program to provide loans for Delaware families who are suffering from serious financial hardships.
And I want to support our state libraries through $8.5 million for projects at the Dover, Milford and New Castle public libraries that will support renovation and expansion needs in all three counties.
Door-Openers
Each year it seems we see significant increases in the demand for government services as the state’s population continues to grow and change. As a result, the cost of funding core government programs and services continues to increase as we work to meet this growing demand. These so-called “door opener” items account for more than 93 percent of our budget growth in my recommended budget for Fiscal 2009.
This year, those items include $36.2 million for increasing Medicaid costs as part of a program that is expected to have more than 153,000 clients in the upcoming fiscal year. We are also facing nearly $10 million in public school enrollment increases and $3.4 million for population growth in our juvenile justice system.
Conclusion
The emphasis in this year’s budget is to target our investments in key program areas while keeping spending down in uncertain economic times. We must ensure that Delaware remains in sound financial shape for years to come.
Our record of fiscal management is one I am extremely proud of. We have done a lot for the people of our state, even in tough economic times that forced other states to lay off employees, remove people from their Medicaid rolls and cut back on other needed services.
As you have heard me say throughout this speech, we are facing an uncertain economic climate and a very tight budget year. I am therefore happy to say that for an unprecedented third year in a row, there will be no increases in employee-paid health premiums. This well-deserved break, coupled with our ability to keep pension costs down, will help our state employees keep more money in their pockets during this difficult time.
It is my sincere hope that economic conditions improve in Delaware. During this time of uncertainty, it is now more important than ever that we continue to ensure that our lowest paid employees earn a “living wage.” So if additional funding is available through the spring, I will recommend that we provide employee salary enhancements and post retirement increases.
I will also recommend additional funding go toward critical public school construction projects.
I thank the team at our Office of Management and Budget led by Director J.J. Davis, my Cabinet, my staff and our state employees for working together to provide the best services possible for the people of our state.
I look forward to discussing my recommended budget with the Joint Finance Committee in the weeks ahead and working with the entire General Assembly in the coming months to enact a financial plan that is both responsive and responsible for Fiscal Year 2009.
Thank you.
