DEFAC December Revenue Estimates Show an Increase over October Numbers
The Delaware Economic Financial Advisory Council met Monday and issued its latest state revenue estimate for the upcoming fiscal year which will begin on July 1st. DEFAC estimates that there will be about $365-million more in revenue than what was estimated two months ago. The December estimate will be the basis for the Governor’s suggested State operating and capital budgets which will be unveiled in January. Those spending plans will be what the legislative budget writers use to craft the state’s final budgets. DEFAC will release four more revenue estimates between January and June.
The State House Republican Caucus released the following statement:
“While today’s forecast was welcome news, we continue to urge the governor and our Democratic colleagues who control the budget-writing Joint Finance and Bond Bill committees to take a cautious approach.
“State spending has recently been growing at an unsustainable rate. In FY 2022, we enacted an operating budget of $4.771 billion. Our current FY 2026 budget is $6.580 billion—an increase of more than $1.8 billion, or about 38%, over the four-year period.
“Today’s estimate leaves the $366 million Rainy Day Fund and the $469 million Budget Stabilization Fund intact. We advocate for leaving this money untouched and in reserve.
“Our state, nation, and world are facing uncertain economic conditions. While we’re still optimistic for the future, hope is not a successful fiscal strategy.
“We still have four more state revenue estimates this spring, with the last and deciding forecast not being issued until June. As we head into the New Year, let us resolve to adopt prudence as we allocate the taxpayers’ money.”