Gov. Ruth Ann Minner announced Nov. 17 the state would go even further in its efforts to control state spending as a result of Monday’s meeting of the Delaware Economic Forecast Advisory Council.

    The council reduced projected revenues for the current fiscal year by $151.7 million and cut fiscal year 2010 revenues by $303.7 million.

    “Unfortunately, we must take immediate action to reduce state spending in light of the continually deteriorating economic forecast,” Minner said. “We have had a number of management controls in place since the beginning of the fiscal year. We will make these even more restrictive to ensure that we continue to balance the budget. Unfortunately, even with our best efforts, this is a problem that will not be resolved for several months.”

    Minner has re-instituted a hiring freeze and requested state agencies submit a 7% cut in their budgets for the current fiscal year, as well as cuts of up to 15% for the upcoming fiscal year. No mid-year budget cuts are being requested of public or higher education. That is in addition to the review for purchase orders over $2,500 and no job reclassifications, both of which already were in place.

    DEFAC reduced projected revenues in nearly every major category, including personal income taxes, corporate income taxes, corporate franchise taxes, bank franchise taxes and realty transfer taxes.

    Combined with the September DEFAC results, estimates since July have fallen $190.6 million for the current fiscal year and $395 million for the upcoming fiscal year.

    The hiring freeze does not include the legislature, judiciary, higher education or local school districts, nor does it pertain to previously approved positions in health and safety or 24-hour institutional settings or employees who are eligible for return to merit rights, as well as critical transition hires.

    DEFAC will meet again Dec. 15, and estimates from that meeting will be the basis for Minner’s recommended operating and capital budgets, to be released in January.