The Delaware Office of Management and Budget is trying to plug the state’s projected fiscal year 2014 revenue shortfall with money that has not been used by other departments.
During the monthly Delaware Economic Financial Advisory Council, OMB Director Ann Visalli said they’ve been able to add about $20 million in reversions to help with the projected revenue shortfall which is now about about $33 million.
“It was a combination of looking at maybe a variety of different programs that were funded for a full 12 months but got started a little bit late so we don’t think they’re going to spend all 12 months of appropriations,” explained Visalli.
Visalli said they have a two-year projected negative cash balance of $55 million and their goal is to reduce at least $33 million this fiscal year, and the other $22 million in fiscal year 2015.
She said they plan to work with the Joint Finance Committee for additional ways to adjust state expenditures. The latest DEFAC numbers show the state has taken a hit paying last year’s corporate tax refunds.
For 2015, things appear to be looking up thanks to the corporate tax increase bill that was passed earlier this year.
That state estimates the new law will bring in an extra $51 million in revenue for FY 2015.
DEFAC will meet again in May and June. The FY 2015 budget is due July 1.