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Where Did the Budget Go Wrong In Delaware?

February 9, 2009

As we face a mounting budget crisis in Delaware one has to ask how and why did it get so bad? Lately, the national economy has been a factor both good and bad but in the end we created a lot of the problems right here at home. Spending has exceeded normal growth needs.
 
Delaware has a budget based on the General Fund, Bond/Capital, and Grant in Aid. Let’s focus on the first two items because total spending is the focus and grant in aid is relatively low (approx $50 million).
 
Here are figures from the Governor’s recommended budget request from 2004 to 2008, a total of five budget years. Same Governor, same President.
 
                      (a)                   (b)                (c)                (d)      (c+d)=e    (e-b)= f
Year    Total GF+Capital    % Growth  % Population    Inflation  Total      Diff
2004             $2.82 Bn           4.6%         1.4%             2.7%        4.1%      +.5%
 
2005             $3.15 Bn           10.5%       1.5%             3.4%        4.9%     +5.6%
 
2006             $ 3.37 Bn           6.5%        1.4%             3.2%        4.6%     +1.9%
 
2007             $ 3.69 Bn           8.8%        1.4%             2.8%        4.2%     +4.6%
 
2008             $ 3.81 Bn           2.9%         1.4%            3.8%        5.2%      -2.3%
 
The population and inflation growth numbers are important because the focus for the future should be a limitation on all spending growth to be limited to population growth plus inflation.
 
Given the previous numbers average total spending went up 2% more than population and inflation over a five year period. Earlier from 1992-2001 budget growth increased 81%.
 
Here are the raw results if inflation and population growth had been the yardstick to measure budget growth.
 
                                                  if budget amount
Year  Budget  $ Request      had inflation/pop growth       extra spending
 
 2005      $3.15 bn                       $2.93 Bn                      +  $220 million
 
 2006      $3.37 bn                       $3.06 Bn                      +  $310 million
 
2007       $3.70 bn                        $3.18 bn                      + $520 million
 
2008       $3.81 bn                        $ 3.34 bn                     + $470 million
 
Here are the sources:
 
http://inflationdata.com/inflation/Inflation_Rate/CurrentInflation.asp
 
http://budget.delaware.gov/budget_archive.shtml
 
http://budget.delaware.gov/fy2010/10_media-financial-overview.pdf

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One Comment leave one →
  1. Families First permalink
    February 9, 2009 4:03 pm

    Are these numbers correct? If so where were the Republicans all of these years?

    This spending is crazy and for what?

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