The Delaware Business Roundtable strongly agrees with Gov. John Carney and state Treasurer Ken Simpler that there needs to be a bipartisan, permanent approach to smoothing out the highs and lows of state revenues from year to year.
The state has experienced a revenue windfall due to increases in corporate franchise tax and corporate income tax, two of the most highly volatile sources of state revenue. This revenue is not expected to continue in future years. As a result, the General Assembly has a perfect opportunity to approve a constitutional amendment limiting annual spending growth based on key economic indicators.
While it may be tempting to use the new, temporary revenues for pet projects and popular spending programs, Delaware’s history of sound fiscal management would be irreparably harmed if lawmakers add permanent state spending on top of unreliable and unpredictable revenue sources.
The Roundtable is committed to working with state leaders and taxpayers to ensure a stronger, more secure fiscal approach that is built on long-term economic growth and restraint in state spending.