State Budgets

Delaware could learn an economic lesson from North Carolina

When it comes to state budget problems, Delaware is not alone as it faces a nearly $350 million gap. In fact, more than 30 states faced budget shortfalls this fiscal year.

Why is Delaware facing this budget crisis? Delaware’s state government spending has nearly doubled since 2004, making Delaware the fourth-highest spender per capita in the nation. Delaware spends heavily on our schools (the 13th highest per student in the nation) and on our state employees (the 25th highest average annual salary in the nation at $52,598 (not including benefits).

Delaware has a spending problem.

Proposals floating in Dover would raise taxes on all Delaware paychecks rather than address the real problem: over spending coupled with Delaware’s tepid economic growth that has depressed government revenues as wage and job growth stagnate, leaving fewer wage earners to tax.

Read the article in full from The News Journal.


In Depth: State Budgets

Smart budgeting is vital to a state’s financial health. The ALEC State Budget Reform Toolkit offers more than 20 policy ideas for addressing today’s shortfalls in a forthright manner, without resorting to budget gimmicks or damaging tax increases. One way to stabilize budgets over time is to embrace …

+ State Budgets In Depth