State budget grows from last year
Gov. John Carney unveiled a $4.7 billion budget Jan. 28 for fiscal year 2022, $70 million more than the 2021 budget but $125 million less than 2020's.
“We were prepared when 2020 came and revenue dropped,” Carney said, touting his budget-smoothing process that creates a reserve in case of economic downturn.
The 2022 operating budget increases 3.5 percent while putting aside $131 million in the Budget Stabilization Fund. About $60 million was used last year to balance the revenue shortfalls in the 2021 budget.
The bond bill for capital improvements is $894 million, providing money for transportation and state projects.
“We're recommending the largest bond bill ever,” said Cerron Cade, director of the Office of Management and Budget.
One-time supplemental funding is $35 million, with another $260 million in one-time funding allocated for capital spending. Other one-time funding includes $30 million for COVID-19 testing, vaccination and contact tracing; and $3.6 million for an initial purchase of body cameras for police. Cade could not say how many police officers would receive body cameras under the plan, which also uses contingency funds to cover costs.
Carney's priorities for this budget are rebuilding the economy, investing in schools, and strengthening communities. Returning to the budget is $150 million toward his priorities that was slashed out of last year's budget. For the economy, $50 million goes to transportation infrastructure, the strategic fund and other business-friendly programs. Another $50 million goes to clean-water initiatives, and $50 million goes to new family courts in Sussex and Kent counties. Cade said the Sussex County Family Court will be finished before the Kent County facility.
A $10 million allocation is earmarked for open space, while another $10 million will go toward farmland preservation.
Opportunity funding for low-income students and English learners would get $10 million, with another $60 million annually by 2025 that more than doubles the funding for public schools.
Other education funding includes $3 million to replace expiring federal funding for mental health supports; $750,000 for county positions to investigate disparate discipline or other unfair treatment of students; and $22 million in salary and step increases for teachers and paraprofessionals.
“Teachers will get steps and a 1 percent increase that is baked into this as well,” Cade said.
State employees will get $500 increases across the board, and $22 million includes funding to move state employees to a $15/hour minimum wage. Neither Carney nor Cade could say how many state employees make less than $15 an hour.
To help employees forced to go on unemployment during the pandemic shutdown, individuals who received unemployment insurance will be exempt from state personal income taxes. Businesses are also exempt from paying higher unemployment contributions because of laying off workers. “[This] takes that burden off small business when they're really hurting,” Carney said.
In the Republican response following the budget release, Minority Leader Rep. Dan Short, R-Seaford, said he is concerned that Carney's mention of raising the state minimum wage may have implications for small businesses.
“I think it's a signal,” he said. “This is not the right time.”
The Joint Finance Committee will mark up Carney's budget in April and May, and the General Assembly must pass the budget and spending bills before July 1.
