Delaware State News

DOVER — Despite a government task force’s call for additional funding to ward off the rising number of foreclosures, the governor’s proposed 2009 budget would cut that assistance in half.

Gov. Ruth Ann Minner’s proposed budget allocates $250,000 for the Delaware Emergency Mortgage Assistance Program. The current spending plan allots $500,000.

Slashing a fund designed to help people who likely would be hard hit by the current economic downturn is very untimely, but those same economic conditions mean the state has fewer resources to allocate, said Lt. Gov. John C. Carney Jr., who chairs the Foreclosure Task Force.

"It’s an absolute emergency situation for someone about to lose their home, their piece of the American dream," Lt. Gov. Carney said. "We’ve got to try to get as many resources as possible from the public and private sectors."

Last month, the Foreclosure Task Force reported that the $800,000 previously allocated to the mortgage assistance program had been used and recommended adding $720,000 in fiscal 2008 to get through the last six months of the fiscal year.

Lt. Gov. Carney said he was disappointed more money wasn’t recommended for fiscal 2009, but understood the situation and took Gov. Minner’s proposed budget as an opening offer.

"The governor’s budget is always an opening position, and you want to be cautious at the outset," he said. "We will be working to get the extra money we need."

Gov. Minner said the state is looking to Washington for help.

"(The federal government) is looking to put more money aside to help states, and we’re hoping that money and other money they’re proposing comes through very quickly so that we can help more people who are having problems with the financing of their homes," Gov. Minner said.