Delaware

Delaware

Budget Cycle
Annual

Governor Submits Budget 
February 1

Fiscal Year Begins
July 1
 
Governor Signs Budget
By July 1 

Budget Links

FY2023 (enacted)
FY2023 (proposed)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)
FY2019 (enacted)
FY2018 (enacted)

Enacted Budget – Fiscal Year 2023

Delaware Governor John Carney signed a $5.0 billion fiscal 2023 general fund operating budget on June 28, an increase of 6.9 percent in spending over fiscal 2022. The enacted budget increases the size of the rainy day fund from $280 million to $316 million and the budget stabilization fund from $287 million to $402 million. Highlights of the budget includes pay increases for state employees, including 2 percent to 9 percent increases for all merit employees as well as increases for public school transportation drivers. All state employees will also receive a $500 one-time bonus. Additionally, the budget includes increases in education programs including K-12 mid-year unit count and programming at the University of Delaware, Delaware State University, and Delaware Technical Community College. In addition to the operating budget, the governor signed a $378.6 million one-time supplemental appropriation which includes funding for the implementation of paid family leave, funding for the Library Connection program and various contingency mechanisms.

Proposed Budget - Fiscal Year 2023

On January 27, Delaware Governor John Carney released his proposed fiscal 2023 general fund operating budget of nearly $5.0 billion, reflecting an increase of 4.6 percent compared to the current year’s plan. This budget reflects $5.9 billion in total general fund appropriations after including $591.6 million in dedicated cash to the Bond and Capital Improvements Act, $56.9 million for Grants-in-Aid, $215.9 million for the Recommended One-Time Supplemental Appropriations Act, and a recommended $47.7 million in dedicated cash to the Other Post-Employment Benefits (OPEB) Trust Fund. The governor has recommended that $15.2 million over and above the constitutionally mandated two percent set-aside remain unappropriated and added to the budget stabilization fund for a new balance of $302.5 million. The budget would appropriate 97.8 percent of revenues. Net general fund revenue collections for fiscal 2023 are estimated at $5.5 billion, a 0.7 percent decrease from fiscal 2022.


Proposed Budget Highlights 

The proposed fiscal 2023 budget continues investments in key areas such as strengthening the economy, expanding opportunity, and supporting families and workforce. Funding recommendations include:

  • Investing in three priority areas: clean water, Wilmington education initiatives, and
    economic development.
  • $367.2 million in state and federal clean water investments to improve drinking water and water resources.
  • $75.0 million to ensure Delaware remains competitive through modernizing infrastructure, focusing on small businesses, and fostering a culture of innovation and entrepreneurship.
  • Providing targeted tax relief and incentives, including exempting 2021 unemployment insurance benefits from state personal income taxes to total $25.2 million over two years.
  • Funding school projects, totaling $339.9 million across all three counties. 
  • $88.7 million in compensation and pay increases for state employees, including moving toward a $15 minimum wage, increasing merit pay scales or 2 percent pay increases, depending on current pay scales and roles.
  • $30 million for farmland and open space preservation, $20.6 million for mental health services in elementary schools, $11.5 million in increased support for childcare providers, and $7.6 million for police body-worn cameras.

 

In addition to the general fund budget, the governor recommended allocating American Rescue Plan Act (ARPA) funds in the following categories:

  • $355 million in statewide technology and capital upgrades
  • $135 million in housing development and emergency housing
  • $121 million in hospitals and health care facilities
  • $112.5 million for the Community Investment Recovery Fund (Nonprofits)
  • $107 million in higher education
  • $100 million in COVID response and mitigation
  • $50 million in workforce development and pathways