Del. budget includes pay cuts, betting

March 19, 2009 11:45:47 AM PDT
Gov. Jack Markell's proposed budget for the upcoming fiscal year includes higher taxes and an across-the-board pay cut for state employees. The governor said Thursday that he also wants to create a sports betting lottery and add up to three new slot machine casinos in Delaware.

While avoiding layoffs, Markell is calling for an 8 percent pay cut for state employees, which administration officials say would save $92 million. Overall, the administration wants lawmakers to approve about $330 million in cuts.

Markell's proposed tax increases total about $166 million. They include raising the cigarette tax by 45 cents, the alcohol tax by 50 percent, and the top personal income tax rate by 1 percent. Increases in the corporate franchise, gross receipts and public utility taxes also are being proposed.

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