Delaware’s revenue forecast continues to improve

Delaware’s revenue projections for the next fiscal year remain positive as personal income tax and abandoned property collections are estimated to bring in additional dollars.

The Delaware Economic and Financial Advisory Council estimates the state will have an additional $101 million to work with between the current and next budget year.

Since DEFAC’s last estimate in December, projected revenue for the current fiscal year has risen by $46 million;  projected revenues for the next fiscal year has increased by $52 million. The increases are due largely to personal income tax increases and abandoned property collections.The total revenue projection for the next budget year, which begins July 1, is now $4.49 billion.

Gov. John Carney has proposed a $4.25 billion budget, a 3.5 percent increase from the previous year. His plan includes a pay raise for state employees and a $100 million boost for capital projects.

Changes to the federal tax code are expected to bring in additional funds as individuals claim fewer deductions.

Meanwhile, projections for corporate income tax revenue are down.

DEFAC has three more meetings before the General Assembly votes on a budget. Revenue projections could change before June.

While the estimates are a positive development for the state, state officials say half of the increase is attributed to one-time resources, so the long-term economic health of the state remains to be seen.