Enacted Budget – Fiscal Year 2027
On June 30, Delaware Governor Matt Meyer signed the state’s fiscal 2027 operating budget. The operating budget provides for $6.99 billion in general fund spending, an increase of 6.3 percent over fiscal 2026. The governor also signed a one-time supplemental appropriation bill providing $146.2 million for one-time needs and contingencies. The governor subsequently signed the state’s capital budget and grants-in-aid bills. The state’s revenue forecast released in June 2026 estimates net general fund revenues totaling $7.22 billion for fiscal 2027, a 3.6 percent increase over fiscal 2026. The final fiscal 2027 revenue resolution estimates an unencumbered beginning balance of $409 million. The budget ensures the rainy day fund (Budget Reserve Account) is fully funded and maintains a strong balance in the separate Budget Stabilization Fund; as of June 2026, the BRA balance was $366.5 million and the BSF balance was $469.3 million. Additionally, the budget sets aside 2 percent of projected revenues per the state’s constitutional requirement, resulting in total reserves of $980 million.
The enacted budget aims to improve affordability and expand opportunity while investing in public education, housing, healthcare, and the state workforce. For education, the budget maintains funds for early literacy, provides funding for teacher-driven classroom projects, and restored a previous budget reduction to operating support for schools. Additionally, the one-time supplemental bill allocates funds for implementation of a new education funding formula and sets aside additional funding for future formula adjustments. For childcare, the budget expands eligibility for the Purchase of Care program. For healthcare, the budget addresses Medicaid service needs and increases rates for direct care professionals serving residents with developmental and intellectual disabilities. For housing, the capital budget provides funds for affordable rental housing, workforce housing, neighborhood stabilization, and urban redevelopment, while the one-time bill includes rental vouchers for families with school-age children experiencing homelessness. The budget also includes a 3 percent pay increase for state and public education employees, with additional raises for eligible school employees under Public Education Compensation Commission recommendations.