will reduce state's income
legislation enacted by Congress will 'cost' Delaware government
an estimated $39 million in revenue not received, the revenue
committee of the Delaware Economic & Financial Advisory Council
David Gregor, the finance department's
director of research and analysis, said $6 million of that will
happen in the remaining six months of this fiscal year and $16.5
million in each of fiscal 2012 and 2013. He told the committee
at its meeting on Dec. 17 that most of the shortfall -- $28
million -- will be in receipts from corporate income tax.
There will be $7 million less in personal income tax collected
and anticipated estate tax receipts will be down $4
Delaware, like several other states, calculates those taxes on
filers' corresponding federal tax obligation.
The impact of extending the Bush-years tax cuts and including
other provisions of the compromise agreement President Obama
worked out with Congressional Republicans caused the committee
to pare what would have been increases over September estimates
in the revenue forecasts it will present to the council on Dec.
20. Instead of anticipating $2.7 million more this fiscal year,
it is now looking for the state's general fund to take in $6
million less. If the forecasts hold, the state will net $3.36
billion, up about 4% over the $3.23 billion realized last year.
Projected revenue in the next two fiscal years stands at $3.46
billion and $3.59 billion, respectively. The committee was told
to expect only "moderate" economic growth over that time span.