DE HB109

Proposes a constitutional amendment to Article VIII, § 6 of the Delaware Constitution to reform the state's appropriation and budget control methods

Replaces the Budget Reserve Account with a new Budget Stabilization Fund with modified deposit and withdrawal rules, including a cap of 10 percent of estimated General Fund revenues

Maintains the existing 98 percent appropriation limit on State General Fund appropriations but allows withdrawals from the Budget Stabilization Fund to supplement appropriations when needed

Establishes a Benchmark Appropriation index based on Delaware personal income growth, population growth, and inflation to guide spending limits and determine when deposits to or withdrawals from the Budget Stabilization Fund are authorized

Requires that final adoption of these structural budget reforms be accompanied by statutory reforms to broaden the Personal Income Tax base, as recommended by the Advisory Panel to the Delaware Economic and Financial Advisory Council