Governor John Carney on Thursday presented his proposed state operating and capital budgets for the new fiscal year that begins in five months.
The $4.991 billion operating budget is an increase of 4.6% over the current spending plan.
The $1.184 billion capital budget (a.k.a Bond Bill) would be the second-largest in state history, eclipsed only by this year’s $1.35 billion measure. The capital budget finances projects to build, renovate, and improve schools, state facilities, and public infrastructure.
The governor’s proposals also include a one-time supplemental spending bill of $215.9 million.
Less than $42 million in total annual tax reductions for Delaware citizens and businesses were detailed in the presentation.
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Over the next five months, lawmakers on key appropriations committees will take the governor’s budgets and rewrite them somewhat to reflect their own priorities. The legislature will be in recess until March 8th as the Joint Finance Committee holds hearings as part of this process.
The budgets will also be adjusted to keep pace with changing revenue projections. The state can only spend 98% of anticipated revenues. Four more state revenue estimates will be issued between now and the start of Fiscal Year 2023 on July 1.
Over the last seven months, the money expected to flow into the state’s coffers for the current and upcoming fiscal years has increased by a total of $820 million.