UPDATE: Markell proposes 5 percent growth in state budget

(AP) – Just months after fellow Democrats expressed concerns about Delaware’s dire financial situation and a potential $160 million shortfall for the upcoming fiscal year, Gov. Jack Markell is proposing to increase the state’s operating budget by more than 5 percent.

Job growth, quality of life, and stronger schools were just a few points of emphasis in his 37-page presentation.

According to the Governor, the past two years have been the best consecutive years of job growth the state has ever seen.

He’s calling for $10-million allotted to financial assistance for businesses.

The $4.1 billion proposal unveiled Thursday includes $18 million in new spending for a general pay increase for state employees, and an additional $16 million for other salary increases, including $9 million in annual pay increases for teachers.
    
To help balance the spending plan, Markell is proposing modest increases in state employee health care premiums, cuts to open space and farmland preservation programs, and elimination of the state’s energy efficiency fund.
    
Markell is also proposing a $487 million capital budget for construction and road projects, up from $456 million this year.

Governor Markell commented on the recent investments, saying, “”We’ve got to give everybody the chance to really meet their own expectations to their own lives and that’s been the driving principle behind many of the investments that we have made over the years.”

We spoke to Republican Senator Ernie Lopez following the Governor’s announcement.

He said that for the most part he was a fan of Governor Markell’s recommendations, minus some healthcare spending.

Governor Markell’s budget doesn’t feature any tax increases.