DOVER, Del. (AP) - Democratic House and Senate leaders told the legislature’s budget-writing committee Wednesday to halt its work amid concerns about spending cuts the panel has approved, and the potential for further cuts.
House Speaker Pete Schwartzkopf and Senate president David McBride instructed the Democratic co-chairs of the Joint Finance Committee to cancel a Thursday work session. The move is intended to allow legislative leaders from both parties to continue discussions on raising additional revenue to balance a proposed $4 billion budget for the fiscal year starting July 1.
The directive came one day after the committee agreed upon about $30 million in cuts affecting a broad spectrum of agencies and programs. Roughly half of the cuts involved public education, but panel members also agreed to cut funding for immunizations, preschool diagnosis and treatment, the state’s needle exchange program, and Delaware’s infant mortality task force.
“We heard loud and clear from legislators, community stakeholders and affected residents about these potential cuts and we understand those sentiments,” Schwartzkopf and McBride wrote in a prepared statement.
Democratic lawmakers said they do not want to unduly alarm the public with further cuts if there is a chance they can negotiate an agreement with GOP lawmakers on tax hikes.
“The whole reason of not moving forward is so we don’t overly alarm people and get people stirred up,” said committee co-chair Sen. Harris McDowell III, D-Wilmington.
Administration officials and lawmakers are trying to close an estimated shortfall of about $380 million between expected revenue and expected expenses for fiscal 2018, based on current year funding.
Democratic Gov. John Carney has called for a roughly equal mix of spending cuts and revenue increases to close the gap.
Republican lawmakers have signaled their willingness to go along with Carney’s proposal to increase corporate franchise taxes, which are paid mostly by out-of-state companies, to raise about $113 million in revenue. In exchange, Democrats reluctantly agreed to support a GOP measure to eliminate Delaware’s estate tax.
But Republicans may want to see more movement on spending cuts before they consider going along with Carney’s plan to increase personal income taxes.
“I think they’re waiting until we get to a certain amount of cuts,” Schwartzkopf said.
House Minority Leader Danny Short, R-Seaford, said Republican legislative leaders have received a cool reception to their proposals from Democratic counterparts.
“They didn’t really want to hear anything that we wanted to say,” Short said, referring to a meeting last week.
“We’re actually trying to find ways to streamline this government and make it more efficient, rather than raising taxes every year and growing the government,” he added.
Short said canceling the Thursday budget committee meeting sends the wrong message to the public, including business owners who are struggling themselves to make ends meet.
“We seem to start off with a budget that has a higher number than last year, and we just accept that, without any reform,” he said.
Schwartzkopf said he remains optimistic that Democrats and Republicans will agree on a budget plan, including raising income taxes.
“If they need something that makes them feel more comfortable voting for a tax, in ways of restricting spending, then I’m willing to look at that as well,” he said.
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