From the January/February Delaware State Chamber of Commerce 2009 Legislative Agenda – State Fiscal Policy:
We must look closely at how state government functions and where the taxpayer’s money is being spent. Ineffective, obsolete programs must be eliminated. We must immediately implement restraints on state spending and explore new revenue sources. In addition, proposed changes in state tax policy must be carefully considered before any action is taken.
From the July 2nd Delaware State Chamber of Commerce 2009 Legislative Wrap Up:
The General Assembly recessed at 4:30 AM this morning after approving a FY 2010 budget of $3 billion and closing a state spending deficit of $800 million. This was accomplished through a series of fee and tax increases totaling $206 million and $301 million in government spending cuts.
Among the tax and fee increases are an 8 percent boost in the Gross Receipts Tax, a 1 percent increase in the Personal Income Tax on incomes above $60,000, and the reinstitution of the estate tax above $3.5 million tied to the federal estate tax rate. All three of these increases included a four-year sunset. Other increases included the corporate franchise tax among other fees.
This fiscal year grant in aid budget is $35.4 million dollars – a 22 percent reduction from last FY. Capital spending is also lower, totaling $284.5 million dollars.
Govenor Jack Markell commited to lowering government spending in the next year through a restructuring of government.
As a long time member of the State Chamber, the owner of a small business, and a new Board member of the Chamber, I’d like to hear your thoughts?