February 2007

Governor Ruth Ann Minner

Gov Ruth Ann Minner with Beverley Baxter and Brian Bailey

Neither knee surgery nor beginning the seventh year as Governor has slowed Governor Ruth Ann Minner.  She has announced an aggressive agenda for this legislative session and has taken up the challenge of addressing the structural deficit in the Transportation Trust Fund (TTF).

While the business community is acutely aware that without adequate transportation infrastructure, economic development will be stymied in the State, some members of the General Assembly have already challenged some of the Governor’s TTF funding proposals.
 
The devastating raid on the TTF began in 1991 when DelDOT operations were moved from the General Fund to the TTF and continued into 2003 when the DMV was added, as well.  Even though these actions took money away from essential construction and maintenance, there has been no attempt, until now, to correct the funding problem, other than adding one-time cash, when available.

Concerned about “uncertain economic times,” the Governor has proposed an operating budget of $3.25 billion, 4.73% over the FY 2007 budget, and a capital budget of $554.8 million, with $330.2 million of that for transportation and $224.6 for public education, higher education, and agency projects.

The Governor’s agenda and budget focus on education, health, the economy, the environment, and public safety.  Her proposals include completing the plan to put math specialists in all middle schools, continuing to increase access to full-day kindergarten, further funding the New Economy Initiative, preserving forests, as well as farmland and beaches, increasing the number of State police, and creating the Delaware Healthy Life Fund
 
To fund the Delaware Healthy Life Fund, and reduce teen smoking, the Governor has recommended a $.45 tax increase for a pack of cigarettes, which would bring Delaware’s total to $1.00, still well below New Jersey’s $2.58, below Pennsylvania’s $1.35 (Governor Rendell has proposed an increase to $1.45), and matching Maryland’s $1.00 per pack.

With non-negotiable budget increases, such as an additional $38.3 million for Medicaid and $9.6 million for expanded school enrollment, and a mandate to keep budget growth under 5%, the budget choices are tough.

The Governor will share her vision, legislative agenda, and budget proposals and take questions. 

Beverley Baxter