Proposed Budget - Fiscal Year 2027
On January 29, Delaware Governor Matthew Meyer proposed a budget recommendation for fiscal 2027. The general fund operating budget calls for $6.94 billion, reflecting annual growth of 5.4 percent. Additionally, the governor recommends $85.5 million for grants-in-aid and $221.2 million in dedicated cash for capital projects. The budget is based on a general fund revenue projection of $6.95 billion (before policy changes), which reflects annual growth over current fiscal 2026 estimates of 1.3 percent. The governor’s budget also incorporates $150 million in net new revenue from proposed tax changes and revenue measures, including modernizing corporate fees; increasing the tax on cigarettes, vaping and other tobacco products; depositing additional Escheat funds into the general fund; and creating the state’s first film tax credit. The governor’s recommendation plans to maintain balances in the Budget Reserve Account, the state’s traditional rainy day fund, of $366.5 million, and the Budget Stabilization Fund, a newer reserve, of $469.3 million. The state’s cumulative cash (ending) balance, including these reserves, is projected at $1.53 billion, including an unencumbered cash balance of $159 million.