HB 109 – The Carney Budget Stabilization Fund is back

The Carney Precious, the budget stabilization fund that gives Republicans an absolute veto over its use, is back. But before we get into the details, I would like to point out that when this monstrosity of an idea was born in 2018, it garnered bipartisan sponsorship, including the sponsorship of the Democratic leadership. Now, in 2021, it only has Republican sponsorship, and Carney doesn’t speak of it. That’s a victory, I suppose.

House Bill 109 Sponsors	Yes Vote	No Vote
D.Short, Dukes, Ramone, Shupe, Briggs King, Gray, Postles, M.Smigth, Smyk, Spiegelman, Vanderwende, Yearick
Lopez, Hocker, Lawson, Pettyjohn, Richardson, Wilson
Current Status — House Administration Committee 2/19/21

So what is this bill? House Bill 109 is an Amendment to the Delaware Constitution that will, when there is a budget surplus, force that surplus into a Budget Stabilization Fund that can only be accessed in emergencies, and only when three -fifths of the General Assembly (13 in the Senate and 25 in House) agree that there is an emergency.  So in other words, this fund will never be tapped.

Thus, when there is a budgetary deficit, or a recession, or both, or an emergency like a global Pandemic that shuts down the economy, we will have this nice little fund that we cannot access (since Republicans won’t agree that there is an emergency) and thus it will force the General Assembly to drastically cut services and education and healthcare spending.

Fortunately, this bill has been placed in the House Administration Committee, meaning that it is likely this bill will not see the light of day.