February 2006

Office of Management and Budget Director Jennifer "J.J." Davis

Office of Management and Budget Director Jennifer Davis with
Vice President Brian Bailey and Executive Director Beverley Baxter

If you think Nathan was on the hot seat for the $2.7 billion Transportation Trust Fund 6-year shortfall, step into the shoes of Jennifer “J.J.” Davis, who has to find the revenue to meet the shortfalls for every department in the State.  And it's a tricky time for the State's economy.

Before J.J. and the Governor can begin to address program needs or even think about new initiatives, they face an $125 million increase for mandated programs and unavoidable costs such as Medicaid, State employee health care, employee pensions and post-retirement benefits, new school enrollment, and rising energy costs.

In addition to the increasing cost of core government services, the State is facing revenue loss from corporate restructuring, Pennsylvania slots (with Maryland to follow), and federal budget cuts and cost shifting to the states.  And, of course, Delaware's Budget is limited to 98% of revenues projected by DEFAC.

As Governor Ruth Ann Minner unveiled her Fiscal Year 2007 Budget on January 26, she thanked her Cabinet and state employees for their “dedicated efforts to serve the people of Delaware.”  But she specifically thanked J.J. Davis.  For good reason.

Jennifer Wagner Davis brings an uncommon combination of intelligence, expertise, strength, and graciousness to one of the State's more difficult jobs.  While, historically, the Budget Director has been seen as “Mr. No” (J.J. was Delaware's first female Budget Director), her job is much broader than saying, “No, we don't have the revenue for your program.”  On June 30, 2005, the General Assembly approved the reorganization that consolidated the Office of State Personnel and a large portion of the Department of Administrative Services with the Office of the Budget to form the new Office of Management and Budget.  Jennifer is its first Director.

She takes the reins at a unique time.  While Delaware's economy appears healthy, there are multiple challenges on the horizon that could impact economic development.   J.J. will review the state of Delaware's economy, highlight the Governor's FY07 Budget, and discuss our challenges, such as funding the Transportation Trust Fund.

Beverley Baxter