Schwartzkopf: Deficit a possibility next year
The Delaware speaker of the House gave a bleak prognosis for next year’s state budget during remarks at the June 7 Delaware State Chamber of Commerce conference, warning of a possible deficit.
“This year we’re running into a problem, and it’s called money,” said Rep. Pete Schwartzkopf, D-Rehoboth Beach. “The [Delaware Economic and Financial Advisory Council] numbers are not good. They’re possibly facing a deficit next year somewhere between $300 million and $600 million.”
After years of budget surpluses boosted largely by federal stimulus funding, those days are coming to an end. Many new legislators who have put forth large spending bills this year had not been elected when the state was facing an $850 million deficit following the 2008 financial crash, forcing the state to tighten spending, he said.
“They don’t know what it’s like to take money away from people, or take services away from people. They have no idea,” said Schwartzkopf, speaking primarily about his Democratic caucus. “They're throwing all these bills out there with no idea of what’s going on … they’re still pushing bills that cost millions of dollars and we’re telling them no.”
Since May, bills have moved through the House Appropriations Committee that would add more than $8 million to the annual budget.
Final DEFAC numbers will be released June 16, giving legislators firm numbers on how to draft the fiscal year 2024 budget. A recent draft markup by the Joint Finance Committee was about $100 million more than Gov. John Carney’s proposed $5.5 billion budget. On the bright side, Carney’s budget includes about $400 million in stabilization funds as part of his budget-smoothing process that he created through executive order. A constitutional amendment to make it law failed early in Carney’s term, and no other legislation has been put forth to continue it. Carney’s executive order will expire at the end of his second term.
“It’s very difficult for these new people to understand that money doesn’t just appear, and we’re looking at a big deficit next year unless things change,” he said. “The economy could pick up and a lot of different things could happen between now and next year, but right now we’re looking at at least a $300 million deficit.”
On a completely different topic, Schwartzkopf was coy when asked about his political future. “No, I'm not making any statements. Tune in later,” he responded.
