The group that monitors Delaware’s fiscal health reports the state’s revenue forecast is slightly worse than projected last month.
The Delaware Economic and Financial Advisory Council reports the state has $9.1 million dollars less to work with for the Fiscal Year 2018 budget than predicted last month, with a $3.89 billion limit set at 98 percent.
The projections also increase Delaware’s budget deficit to about $395 million. Carney’s proposed $4.1 billion budget already includes several budget cuts and tax hikes to address the shortfall.
Continuing last month’s trend, one of the major issues affecting the budget outlook is a reduction in revenues from the corporate income tax which continue to decrease for the current fiscal year and for FY18.
Last month, during DEFAC’s first meeting of the year, the Council lowered its revenue projection for this fiscal year by about $30 million compared to its December number. The revenue estimate for the New Year beginning July 1 also dropped about $6.5 million from previous projections.
Since FY17’s budget was put in place, the state faces about $110 million in revenue decreases.
Last month’s projected $385 million deficit was about $35 million more than anticipated last year.