Yesterday, Delaware’s two largest public employers indicated that they were facing fiscal challenges. Governor Ruth Ann Minner announced a hiring freeze to address a $126 million dollar budget shortfall. New Castle County Executive Chris Coons announced a budget proposal requiring the use of $17.2 million dollars of its cash reserves.
The State and the County and other governments are feeling the effects of a softening economy. Since personnel wages and benefits costs make up a large part of their budgets, it is clear that public employees will be asked to make sacrifices as governments struggle to balance their budgets.