State Budgets: Delaware Hurt By Falling Corporate Tax Revenue; Shifts Funds From Future
January 2, 2009
In mid-December, Delaware Gov. Ruth Ann Minner (D) announced $55 million in budget reductions to partly reduce a $109 million shortfall in the current $3.4 billion budget, including a $23 million accounting trick shifting Medicaid payments from the end of the month to the beginning. The 2010 budget shortfall consequently became larger, and now stands at $560 million. Corporate income taxes are especially hard hit, down two-thirds from last year, and the recent adoption of state slot machines in Maryland will likely hurt gambling tax revenues. Minner has asked state agencies to cut spending by 7% this year and by 15% in 2010. Current State Treasurer and Gov.-elect Jack Markell (D), who is sworn in as Governor on January 20, said he considers a sales tax adoption to be off the table.
More on Delaware here.
Was this page helpful to you?
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?Contribute to the Tax Foundation
Let us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?Give Us Feedback