Proposed Budget - Fiscal Year 2026
On January 6, 2025, outgoing Delaware Governor John Carney proposed a budget recommendation for fiscal 2026. On March 27, Governor Matthew Meyer introduced budget amendments for fiscal 2026 (a “Budget Reset”), building upon the prior administration’s proposal while focusing on the new governor’s priorities. With Governor Meyer’s proposed budget amendments, the general fund operating budget would total $6.58 billion, reflecting annual growth of 7.4 percent. Additionally, the governor recommends $82.8 million for grants-in-aid, $59.9 million for one-time supplemental appropriations, and $291.4 million in cash for capital projects. The budget is based on a general fund revenue forecast of $6.76 billion for fiscal 2026, which reflects 1.9 percent annual growth over fiscal 2025 estimates (before policy changes). The budget also incorporates $29.5 million in additional revenue from proposed changes to personal income, cigarette, and other tobacco taxes. Including this additional revenue as well as carry-over funds from the prior year, total resources are projected at $7.158 billion. Total general fund cash appropriations represent 98.0 percent of total resources at $7.015 billion, meeting the two percent set-aside required by state law. The state’s traditional rainy day fund, the Budget Reserve Account, has an estimated balance of $365.4 million in fiscal 2026, based on the Financial Summary in Governor Carney’s budget recommendation. The fiscal 2026 financial plan for Governor Meyer’s Budget Reset also maintains the current balance in the state’s newer reserve, known as the Budget Stabilization Fund, of $469.2 million for fiscal 2026.