State Budgets: Delaware Hurt By Falling Corporate Tax Revenue; Shifts Funds From Future
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.
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