Delaware House Bill HB429

Delaware 2023-2024 Regular Session

• Introduced: 6/6/24
• Refer: 6/6/24

Caption

An Act Proposing An Amendment To Article Viii, § 6 Of The Delaware Constitution Relating To Limiting The Annual Growth Of Expenditures In The State Operating Budget.

Impact

The bill introduces protocols designed to hold the General Assembly responsible for the growth of state spending. It defines the Benchmark Index based on economic indicators that include personal income growth and population growth while establishing a Budget Accountability Review Commission (BARC) to assess annual budget proposals against these benchmarks. This institutional framework seeks to enhance fiscal discipline and ensure that the state's financial health is preserved, particularly during economic downturns.

Summary

House Bill 429, titled the State Spending Accountability Amendment, aims to amend Article VIII, § 6 of the Delaware Constitution to impose limitations on the annual growth of expenditures in the state operating budget. The bill intends to continue the Budget Stabilization Fund and the Benchmark Appropriation mechanisms that were established under Executive Order 21 by Governor John Carney in 2018, thereby creating a structured approach to managing state budgetary provisions as they navigate potential instability. This proposed amendment is crucial, as the existing provisions will expire at the end of the Carney administration in January 2025.

Sentiment

The sentiment surrounding HB 429 seems to lean towards support from those who prioritize fiscal responsibility and sustainable budgeting practices within the state. Proponents argue that establishing strict guidelines for budget growth is essential for ensuring accountability and protecting taxpayers. However, some concerns may arise regarding the potential rigidity of the proposed budgeting processes, which could limit lawmakers' flexibility to respond to unforeseen financial crises or emergencies.

Contention

Notable points of contention include discussions about the balance between fiscal prudence and the flexibility needed to address diverse state needs in emergencies. Critics may argue that the formalization of these budget growth constraints could hinder the state’s ability to adapt funding in response to economic fluctuations or urgent public needs. The debate around this bill reflects broader themes in governance about the role of legislative oversight, budget management, and the autonomy of state officials in appropriating funds during unforeseen circumstances.