Delaware

Delaware

Budget Cycle
Annual

Governor Submits Budget 
February 1

Fiscal Year Begins
July 1
 
Governor Signs Budget
By July 1 

Budget Links

FY2027 (enacted)
FY2027 (proposed)
FY2026 (enacted)

FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)

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.


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.  


Proposed Budget Highlights 

The governor’s budget invests in priorities including supporting children and working families, making housing more affordable, improving healthcare, and promoting a competitive workforce. The budget recommendation also focuses on improving government efficiency and curbing spending, and includes targeted reductions, reprogramming, and one-time adjustments. Highlights of the budget include:

Children

  • Expands high-quality affordable early child education, including funds to pilot the Delaware Early Childhood Care and Education Alliance.
  • Coordinates childcare investments with additional funding for Purchase of Care program, which provides childcare subsidies.  
  • Provides emergency funding to school districts for literacy support, targeting funds toward evidence-based literacy instruction and reading pilot programs.
  • Invests in public education capital projects and school district construction projects.
  • Allocates funds for school safety.
  • Supplies funds to begin implementing the state’s new public education funding model.

Housing

  • Targets ongoing rental assistance to low-income individuals.
  • Provides homelessness services to individuals and families.
  • Maintains enhanced level of funding in the Housing Development Fund to support homeownership counseling, emergency home repairs, and down payment and settlement assistance.
  • Enhances mortgage assistance opportunities.
  • Provides funds for the 12th year of the statewide Urban Redevelopment initiative, which supports Downtown Development Districts.

Health Care

  • Makes targeted Medicaid investments, including increasing reimbursement rates for direct service professionals, skilled nursing, and mental health providers, and providing biomarker coverage.
  • Increases funding for corrections system medical and pharmacy contracts.
  • Invests in targeted Medicaid services
  • Invests in Delaware’s rural health infrastructure, including developing the state’s first medical school and increasing mobile health units, supported through the federal Rural Health Transformation Program.
  • Allocates funds for the increased state-share of Supplemental Nutrition Administrative Program (SNAP) administrative costs.
  • Proposes funds for ongoing lead remediation efforts.
  • Establishes a “double up bucks” food incentive program tied to SNAP.

Workforce

  • Increases teacher pay by implementing Year 3 of Public Education Compensation Commission recommendations and provides educator step increase.
  • Provides 2 percent salary increases for all state employees and funding for collective bargaining contracts.
  • Invests in reducing the OPEB Trust Fund liability.
  • Calls for funds to expand apprenticeships and workforce training in three vocational technical school districts.

Other

  • Capital funds to maintain and upgrade state facilities, build a new Forensic Science Building, renovate various facilities, and other projects to support safe and stable communities.
  • Supports economic development initiatives including the Site Readiness Fund, Riverfront Development Corporation, and the Strategic Fund, as well as other efforts.
  • Invests in environmental programs including Shoreline and Waterway Management, the drinking water and clean water state revolving funds, and other programs.