There has been a lot in the news about HB 81, and a “fix” for Delaware’s retiree healthcare costs. Much has been made about “avoiding Wisconsin” and the “Delaware Way”. But, this “group hug” process hasn’t even come close to solving the problem. To quote Bugs Bunny, “What a maroon.”
Don’t believe me? Let’s look at the Governor’s own numbers. The following sheet spells it out (Click on the image to enlarge)…
The heavy black copy comes straight from the Governor…
The lighter black copy is a simple trend analysis based on the Governor’s supplied numbers…
In summary, trend growth in this category is 19%. Are state revenues growing at 19%? Are there budget cut proposals equal to 19%? Are there tax increase proposals equal to 19%?
No, no, and… no.
So, this category will continue to absorb more & more tax revenues crowding out other spending choices.
HB-81 is a complete failure to address the problem. The bill just has good marketing.
So, what do you do?
There is one solution, and one solution alone — reduce State workers. Time to pull out the Bonini plan. But with reelection calling and higher office looming, our Governor continues to refuse to make the hard choices.