DOVER — The House passed a $6.99 billion operating budget for FY 27 on Wednesday, approving a spending plan that provides a meaningful investment in the state’s education system, healthcare, and social safety net.
The budget, along with a $146.2 million supplemental spending plan, now head to the Governor for signature.
“I am proud of the work that went into crafting this bill because it reflects both our values and our responsibility to be fiscally responsible. We have developed a budget that supports communities throughout Delaware while preserving strong reserve funds, reducing vacancies, and identifying cost savings to ensure long-term financial stability,” said Rep. Kim Williams, co-chair of the Joint Finance Committee.
“At the same time, we are making strong investments in public education, healthcare, state employees, retirees, and working families. From restoring Division II funding and advancing the Public Education Funding Commission’s recommendations to increasing support for Direct Support Professionals and Purchase of Care, this budget makes strategic investments that will strengthen Delaware today and position us for success tomorrow.”
Senate Bill 335, the operating budget, is the result of public hearings and meetings to review Governor Meyer’s Recommended Budget, and to solicit input from state officials, lawmakers, and the public about how to best invest revenues.
Major highlights include:
Investing in State Workers with Competitive Salaries and Benefits
- $146.9 million added to provide pay policy for state employees, including:
- For the sixth year in a row, state employees will receive a pay increase, with all merit employees receiving a 3% raise.
- Education employees receive a minimum of a 3% raise, but teachers, nurses, etc., and non-administrator classroom staff receive additional raises as recommended by the Public Education Compensation Commission (PECC), continuing the promise toward teacher starting salaries of $60,000.
- Salary recommendations of the 2025 Compensation Commission Report, negotiated collective bargaining unit increases, and statutory step increases are fully funded
- Over $16.2 million added to cover the state share of state employee and state retiree health insurance premiums to ensure existing health benefits remain intact.
Providing Assistance to State Retirees
- $65.8 million toward OPEB Investments, ensuring healthcare for state retirees and reducing long-term liability
- $72 million in Post Retirement Increase Funding to fully fund a post-retirement increase for state pensioners.
- 1% increase for those retired between June of 2021 and 2006; and
- 2% increase for those retired prior to June 30, 2006.
- $6 million toward a 0.25% rate of payroll to rebuild funds in the Post Retirement Increase Fund for future retiree raises.
Investing in Healthcare and Healthy Communities
- $128.5 million added to cover increases in statewide Medicaid service needs.
- $34.1 million added for health services increases in the Department of Correction.
- $14.6 million for residential habilitation, community-based services, growth, and to clear personal attendant services waitlists to support statewide developmental disabilities services.
- $10.5 million for Direct Support Professionals Rate Increases (McNesby Act).
- $54 million in additional spending authority for Hospital Quality Assessments to support healthcare system sustainability.
Supporting Our Youngest Delawareans
- $26.4 million invested in child care policy changes to support both Delaware families and childcare providers, bringing the total state support to Purchase of Care $107 million.
- $600,000 in school wellness centers, kindergarten oral health screenings, additional seats in the Delaware Institute for Dental Education and Research (DIDER) program, as well as outreach services for the deaf, hard of hearing, and deaf-blind community.
Supporting Our Students
- This budget continues Delaware’s strong investment in public education with more than $2.5 billion toward the pre-k to 12 population, just over 140,000 enrolled students, including:
- $26 million added to restore a Fiscal Year 2018 budget reduction to Division II units, allowing all districts and charters immediate financial support toward school operations.
- $8 million in continued Early Literacy Funding to address our youngest learners.
- This budget also support higher education and workforce readiness through:
- $5 million added for Delaware State University operations.
- $1.5 million added for adult education and workforce training at the vocational school districts.
- $1.2 million added for Delaware Technical Community College compensation stabilization.
Prioritizing the Safety of Our Law Enforcement Officers and Public Safety
- $2.8 million added for Delaware State Policy Body-Worn Camera contract increases.
- $2.2 million in authorization added for additional security staffing at transit facilities and DMV locations.
- $2.4 million added to support preventative detention and bail reform implementation.
Strengthening Government Accountability
- $1.3 million to fund the State’s new Office of the Inspector General.
- Additional staff support at the Auditor of Accounts’ office to continue in-house audit engagements.
The one-time supplemental budget, laid out in Senate Bill 336, includes a total of $146.2 million in one-time funding for statewide needs, including:
- $100 million toward future education formula adjustment as the state moves toward a weighted funding formula model as recommended by the Public Education Funding Commission (PEFC).
- $8.3 million toward upcoming primary and general elections.
- $8 million toward the Delaware Early Childhood Care and Education Alliance.
- $5 million in operations support for Delaware State University
- $3.4 million toward SAT reform efforts to modernize Delaware assessments.
- $3 million to fund teacher driven projects – allowing teachers to request funding for classroom needs as they see fit.
- $2 million for residential and childhood lead prevention and remediation.
- $1.9 million toward upgrading the Department of Elections’ campaign finance system.
- $800,000 added to supply rental vouchers to families with school-age children living in shelters and motels.
“Our budget is the culmination of months of hard work — thousands of hours — on the part of the members of the Joint Finance Committee and the many dedicated staff members who support our work,” said Sen. Trey Paradee, chair of the Joint Finance Committee. “I want to thank Governor Matt Meyer for presenting us with a fantastic recommended budget earlier this year, giving us a great jumping off point. I also want to give my profound thanks to our Controller General Ruth Ann Miller, whose leadership and fortitude often goes unacknowledged. We thank her and her entire team for being such stalwart shepherds of our precious state resources.”
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