The state budget: Does more spending lead to a higher quality of life?
State budget talks begin in February – why some are worried it will include significant spending increases.
The month of February is when Delaware lawmakers begin to determine the state’s budget for the next fiscal year and, if years past are any indication, it’s likely that there will be increased spending – which some groups like A Better Delaware, founded by Chris Kenny, believe won’t help in the long run. Here’s why some are calling for smarter – not necessarily higher – state spending.
In June 2020, Governor Carney signed a 4.4 billion budget plan, an increase from the previous year’s 4.27 billion.
Current 2020 budget
Increasing the state budget year over year isn’t only a burden to the taxpayer and small business owners, many wonder if it’s sustainable. Groups like A Better
Delaware suggest looking at data-based spending to use existing funds more efficiently.
How we can spend smarter in the First State
Per-pupil costs in Delaware are still climbing above the national average, but students heading to high school in the state continue to lag behind.
Grade 8 NAEP assessment scores (0-500):
Members of the editorial and news staff of the USA TODAY Network
were not involved in the creation of this content
Members of the editorial and news staff of the USA TODAY Network
were not involved in the creation of this content
Bonds and grants:
4.4 billion base budget
+ 863 million bond
+ 55 million in grants-in-aid
= Approximately 5.3 billion total spending in 2020
35%:
Approximate percentage spent on education
Proposed or possible taxes:
• Increased income taxes
• Statewide sugar tax
70%:
Total funding diverted to personnel, whose salaries are determined by seniority and degrees, not the needs or number of students served.
Delaware:
$16,502
US Average:
$13,814
State of school spending
Instruction (including personnel salaries)
Operations and maintenance
Administration and staff
Food services
Student support and transportation
Other support
57¢
10¢
9¢
7¢
9¢
9¢
High school graduation rate – 28th in the nation
First-year college students requiring remediation courses
Students scoring at or above grade level in reading and writing on the SAT
Students scoring at or above grade level in math on the SAT
86%
41%
50%
28%
Grade 4 Reading Percentages:
Math Scores 2017:
National Average - 282
Delaware - 278
Math Scores 2019:
National Average - 281
Delaware - 277
Reading Scores 2017:
National Average - 265
Delaware - 263
Reading Scores 2019:
National Average - 263
Delaware - 260
In addition to the operating budget, additional funds will be dispersed that take spending above the $5 billion mark. Additionally, proposed or possible increases in taxes are on the table.
Additional spending in 2020
Increases in spending and taxes have not resulted in significant improvements in educational and health care outcomes, and may in fact contribute to Delaware’s stagnant economy. The First State ranks last in gross domestic product (GDP), was named by the Mercatus Center at George Mason University as being one of the worst states in the nation for fiscal health and Wallet Hub placed it 44th on the list of best places to start a new business.
A 2014 analysis shows Delaware has the 3rd highest per-capita spending in the U.S., yet ranked 30th in the nation for overall health in 2019.
Health care:
25th
30th
Delaware spends $14,224 per pupil, which is higher than the national average of $12,526, but it ranks only 25th in high school graduation, among other troubling statistics.
Delaware education spending has increased year over year without clear evidence it is significantly increasing student achievement.
Education:
Source: Delaware Office of Management and Budget
Increasing the state budget year over year isn’t only a burden to the taxpayer and small business owners, many wonder if it’s sustainable. Groups like A Better Delaware suggest looking at data-based spending to use existing funds more efficiently.
How we can spend smarter in the First State
What is data based spending? Determining the return-on-investment for costs, programs and regulations to prioritize or reevaluate how and where funds are allocated.
Minnesota and New Mexico are trailblazing a path to better government spending through a partnership with the
Pew-MacArthur Results First Initiative, where policymakers look at the effectiveness and return on investment of programs to determine where to allocate taxpayers dollars. In Minnesota, agencies were asked to provide evidence of desired outcomes along with their budget request for each program.
As lawmakers decide what to include in the next state budget, let them know that your money deserves better. You can:
How to help
Sound off:
Let legislators know your opinions on the issues
Subscribe:
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Contact:
A Better Delaware
Source: Delaware Office of Management and Budget