Delaware budget: Gov. Jack Markell spreads cuts around

Gov. Jack Markell proposed a       About 3,500 single adults
$3.4 billion budget Thursday       receive checks of about $94 a
that would close a $216.4          month through the welfare
million budget shortfall with      program, according to DHSS.
spending cuts, efficiencies,       The governor cut the program
one-time revenue sources and       because of a concern that it
the first layoffs of his           wasn't addressing the root
administration.                    causes of the recipients'
Markell's proposed 2012            poverty, Landgraf said.
fiscal year budget books $8.2      "I couldn't evaluate what
million in savings for cost        type of return we got for
containment in Medicaid and        that investment," Landgraf
state worker fringe benefits,      said.
but doesn't say how those          As an alternative, Markell
cuts will be achieved.             proposed keeping $1.5 million
"It looks to me to be very         of the general assistance
philosophical," said Rep.          program intact for DHSS to
Ruth Briggs King, R-               hire a contractor to connect
Georgetown, of the proposed        recipients with existing
cuts. "But I just don't see        social services, Landgraf
the substance telling us how       said.
this is going to be                (3 of 3)
accomplished."                     McDowell, whose committee
Briggs King is one of 12           will decide the fate of the
lawmakers who will begin           proposed cut, said he was
dissecting Markell's budget        "concerned" about gutting the
on Monday, when the Joint          cash assistance.
Finance Committee opens six        "It makes me nervous because
weeks of public hearings.          I do know a lot of people out
Lawmakers have until June 30       there, but for that help,
to send Markell a balanced         would be in dire straits,"
budget.                            McDowell said.
The Democratic governor said       As part of the $100 million
the budget can be balanced         in cuts, Markell's proposal
with no additional taxes.          eliminates the state's entire
But to do so, Markell              share of the farmland and
proposed slashing spending by      open-space preservation
$100.6 million, with the           programs, totalling $20
deepest cuts coming to             million.
farmland preservation,             McDowell, D-Wilmington North,
school bus transportation,         said he is against
higher education and health        eliminating those programs.
and social services.               "If that's a one-year
"It's a pretty austere budget,     suspension, that's one thing,
" said Sen. Harris McDowell,       " McDowell said. "Maybe it
the new Democratic co-             might be better to spread the
chairman of the budget-            cut over two or three years.
writing JFC.                       Sometimes when you go to zero
Markell called the reductions      like that, you lose an awful
"painful cuts, but necessary       lot of infrastructure and
cuts."                             support systems that are hard
"This is a difficult but           to recover."
financially responsible            Markell proposed eliminating
budget," Markell said.             the Board of Parole and
Markell said the reductions        consolidating its function
were necessary to counter          into the Department of
$106.9 million in increased        Correction to save $529,000.
costs for Medicaid, the            The same proposal went
health insurance program for       nowhere in the Legislature
194,000 Delawareans who are        last year.
poor, disabled or living in        Markell also wants to make
nursing homes.                     school districts use local
Even with cuts, the                tax dollars to cover 10
Department of Health and           percent of transportation
Social Services budget would       costs. Currently, the state
increase $62.6 million to          covers the entire cost of
handle additional demand.          transporting students to
Markell has called on the          school. Markell's budget
General Assembly to rein in        would cut school bus funding
employee health insurance and      by $7.13 million for the
pension costs and the              state's 19 school districts.
ballooning cost of Medicaid,       Charter schools would see
which is largely free to           their bus funding drop by
recipients.                        $500,000.
"We've got to focus in a           On the classroom end, Markell
serious way on some of these       proposes spending an extra $6.
costs which are growing so         7 million to hire 100 new
quickly, including Medicaid,       teachers to handle growth.
including taxpayer                 His plan calls for an
contributions for pensions,"       additional $2.1 million to
Markell said.                      implement full-day
(2 of 3)                           kindergarten in the Christina
Markell's budget contains no       and Milford school districts
specific plan for controlling      and $7.5 million for
Medicaid costs, yet budgets        contractual salary step
$5 million in savings.             increases for teachers and
Some changes, such as adding       paraprofessionals.
co-pays or limiting coverage,      The budget contains no across-
could take a year to               the-board pay raises for
implement and necessitate          state workers. Last year,
approval from the federal          lawmakers restored a 2.5
government, providing little       percent pay cut state workers
short-term budget relief,          took in 2009.
said DHSS Secretary Rita           The University of Delaware,
Landgraf.                          Delaware State University and
Markell has said he wants          Delaware Technical &
lawmakers to pass reforms to       Community College would share
state employee health              a $6.52 million reduction in
insurance and pensions that        their annual appropriations.
save $100 million over the         Under the governor's budget,
next five years. Yet his           the Bond Bill would increase
proposed budget banks on only      from $389.7 million to $420.5
$3.2 million of savings in         million for capital
the first year.                    improvement and
"It doesn't really hit the         transportation projects.
Richter scale," said House         Markell used $41.5 million in
Minority Leader Greg Lavelle,      cash that normally goes into
R-Sharpley. "The work still        the Bond Bill to balance the
has to be done. Don't put          operating budget.
away the shovels."                 The governor's budget
Under Markell's 2012 budget        proposal also assumes a $75.8
plan, 55 casual and seasonal       million increase in tax
workers in DHSS would be laid      revenue in 2012 from the
off to save $2.34 million. If      current fiscal year,
approved by lawmakers, it          according to the Office of
would be the first pink slips      Management and Budget.
Markell will issue since           Unlike 34 other states,
becoming governor in 2009.         Delaware saved about $82.7
The jobs are largely               million in federal stimulus
temporary employees in state       funds from the current fiscal
health facilities who have         year to apply to the 2012
been kept on but do not            budget, Visalli said.
receive benefits, Landgraf         Schools districts will get
said.                              $27.4 million of leftover
Landgraf said the jobs will        stimulus funds, while the
be eliminated as the               remaining $55.3 million will
department moves mentally          be mostly eaten up by a rare
disabled adults from               27th payday the state has to
institutional care at the          account for next year,
Delaware Psychiatric Center        Markell said.
to community-based housing,        It only happens every 11
which will save more money         years, but a 27th biweekly
over time.                         payday will fall within the
"We see them as a                  2012 fiscal year from July 1
supplemental support, not as       to June 30, 2012, adding a
a necessity," Landgraf said.       $54.8 million expense to the
The governor followed the          budget, Visalli said.
recommendation of DHSS and         "Last year, we balanced the
proposed cutting $3 million        budget with the money we had,
in cash assistance for adults      not the money we hoped for,"
who are unemployable,              Markell said.
destitute and often homeless.      

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