New Revenues Must Not Be Used For Long-Term Spending Programs
The Delaware Business Roundtable agrees with Gov. Carney that it would be irresponsible for the General Assembly to add permanent – and unsustainable – state spending on top of a shaky fiscal foundation, despite improved revenue forecasts for the coming year.
Delaware’s overall fiscal picture is clouded by unreliable and unpredictable revenue sources and ever-ballooning health, education and public employee expenses – and adding permanent new spending is a recipe for short-term political gains and long-term financial ruin. State lawmakers must remain focused on controlling Delaware’s fiscal destiny by focusing on long-term economic growth and exercise restraint in state spending.
That’s why the Roundtable continues to support enacting a bipartisan constitutional amendment to smooth out the highs and lows of revenue projections and more prudently control state spending. The amendment – which would limit year-to-year spending growth based on a series of economic indicators – is a much-needed way to lock in fiscal restraint, much like efforts in the 1970s when the Rainy Day Fund and other initiatives were enacted.