DEFAC projects more revenue for 2015; 2016 Delaware budget numbers are close

Delaware’s fiscal year is going to end with another $54.9 million over previous revenue projections.

The projection released by the Delaware Economic and Financial Advisory council (DEFAC) is the last one before the end of the Delaware legislative session when a budget for 2016 will need to be finalized.

The group also estimate that revenues will be close on Governor Jack Markell’s $3.9 billion budget.  DEFAC reports $3.88 billion in total revenue for FY 2016.

The State’s general fund revenue totaled $3.92 billion in Fiscal Year 2015, according to DEFAC, the council that forecasts revenue funds for state government. The number is a $54.9 million increase over the $3.87 billion estimated last month.

The boost to the budget resulted from a $2.5 million increase in personal income tax over what was predicted in May, according to the report. Personal income tax accounted for the majority of revenue intake at $1.2 billion.

There also was a $42.5 million increase in corporate income tax due to an audit settlement, DEFAC reports. The total amount received from corporate income tax was $253.5 million.

Abandoned property revenue, a large source of state revenue, decreased by $14 million from last month’s projections, according to the report. 

An operating budget for fiscal year 2016 must be voted on and sent to Governor Markell by June 30th.  The legislative Joint Finance Committee has spent months crunching the numbers and taking testimony from state departments and agencies in order to set up spending priorities. They’ll meet next Monday to craft a final plan.