Legislative Update - May 26th, 2020

Legislative Update May 26, 2020
 
Legislative business is set to resume in Dover.  The Delaware General Assembly is going back into session today, May 26 at 2:00 p.m.    The House of Representatives will and pass a resolution which will set forth rules for conducting legislative session via virtual means.  The Senate meet virtually, tomorrow, May 27 at 4:00 p.m. to do the same, and to consider gubernatorial nominations.  The proceedings in each instance will be livestreamed on YouTube, with a link to the watch them to be posted on the General Assembly website www.legis.delaware.gov, prior to the beginning of proceedings.
 
State budget gap closed for FY 202o, a substantial structural gap remains for FY 2021. The May 21 meeting of the Delaware Economic and Financial Advisory Council brought with it more positive revenue forecasts for the current fiscal year.  The previously forecasted $150 million revenue gap for the current fiscal year has been closed due to an increase in forecasted revenue of about $90 million.  The other $60 million is compromised of a combination of stimulus funds used to offset certain Medicaid costs and closing out funding for completed capital projects.  Legislators and the administrators still must contend with a $450 million structural shortfall for FY 2021, which commences on July 1.     
 
Following the Memorial Day break, the discussion of additional stimulus will resume in the U.S. Senate.  The House has already passed additional stimulus legislation.  Senate Majority Leader Mitch McConnell (D-Kentucky) has indicated that he believes that Congress and the administration should pause and assess the effects of the trillions already allocated under the Paycheck Protection and Health Care Enhancement Act as well as the CARES Act and the two more modest measures passed before them.  Certain members of the Republican caucus in more vulnerable seats are arguing to move more quickly and pass legislation along the lines of what passed the House earlier this month.   The U.S. House passed a $3 trillion measure on Friday, May 15 which would, among other things, provide relief to state and local governments, without which, a substantial number of states are facing budget crises.