Delaware Gov. Jack Markell calls for no new tax increases in a proposed $3.54 billion operating budget for the next fiscal year that is only marginally higher than this year's budget.
The budget proposed by the Democratic governor on Thursday represents an increase of 1 percent over this year's operating budget.
Markell is proposing $27 million in new spending for school staffing that previously had been funded with federal stimulus money that is now no longer available.
He also is recommending about $22 million in additional spending for Medicaid to meet enrollment growth in the government health care program for the poor. Officials expect an additional 20,000 people to be added to the state's Medicaid rolls, bringing the total to about 234,000.
The governor also wants almost $50 million in additional funding for state employee pay and pension increases that lawmakers granted last year.
Markell, who has said job creation is a top priority for his administration, is recommending $31 million for Delaware's strategic fund in a continued effort to attract and retain private-sector employers. That's down from $30 million in the current year.
In addition to the operating budget, Markell is proposing a capital budget of $448 million, with $213 million targeted for transportation improvements and $235 million for schools and other construction projects. Officials are proposing to use about $38 million in general fund cash for the capital budget, down from $115 million this year.
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Total general fund appropriations in Markell's proposal, including the operating budget, capital budget and $40 million in grants to nonprofits and community agencies, are about $42 million lower than the current year's budget.
“We know this plan is reasonable and responsible,” said state budget director Ann Visalli.
In addition to the $27 million in new education spending to replace the federal stimulus funds, Markell is proposing about $9 million in new funding to hire teachers and other school staff to meet growth in school enrollment.
Administration officials are proposing $2 million each for Delaware's agricultural land and open space preservation programs, down from current funding of $10 million each.
