ARTICLES IN THIS EDITION

• NEWS: Governor Unveils His Proposed State Spending Plan
• NEWS: A Regulatory Change Could Have Dire Consequences for Businesses and Consumers
• NEWS: House & Senate Democrats Override Governor's Veto of Disputed Bill, Against the Wishes of Black and Hispanic Groups
• NEWS: Bill Would Give Boat Owners the Right to Repair their Vessels, Engines, Equipment

NEWS

Governor Unveils His Proposed State Spending Plan

On Thursday, Governor Matt Meyer unveiled his proposed state operating budget for the new fiscal year that begins July 1.

The $6.938 billion FY 2027 budget would represent a 4.99% increase over the current one.

The governor's staff faced a difficult challenge in keeping growth below 5% amid inflationary pressures, reduced federal funding, and ongoing costs built into the budget by sharply higher spending in recent years.

House and Senate Republicans have repeatedly warned that state spending growth has far outpaced revenue growth. As the governor noted in Thursday's presentation, in FY 2024, spending growth exceeded revenue gains by 9.1%. The following year, the negative spending-revenue gap was nearly 4%. In the current fiscal year, it is about 5%.

Just covering existing budget items in the new spending plan — expenses called "door openers" in budgetary parlance — would have led to an 8% increase and a shortfall of almost $525 million.

Among the factors driving higher costs were increased expenses for Medicaid ($188 million), personnel ($118 million), school student funding ($41 million), child and dependent care ($37 million), and higher healthcare expenses for inmates, state employees, and retirees ($67 million).

Governor Meyer’s Fiscal Year 2027 recommended budget eliminated the initial projected deficit and significantly reduced the gap between spending growth and revenue growth through targeted reductions, reprogramming, one-time spending adjustments, and operational efficiency savings. The proposal also seeks increased "business formation fees" and hikes to various tobacco taxes.

The plan includes new or increased spending targeting education, housing, healthcare, and economic development initiatives.

While significantly lowering spending growth compared to the last three fiscal years, the governor's proposed budget still outpaces revenue by about 1.5%.

After the presentation, House Republican Leader Tim Dukes (R-Laurel) and House Republican Whip Jeff Spiegelman (R-Townsend, Clayton, Smyrna) offered their perspectives.

Both Republican leaders were supportive of the governor's efforts to rein in spending growth. They also applauded the plan for leaving untouched two critical contingency funds: the Rainy Day Fund ($366.5 million) and the Budget Stabilization Fund ($469.3 million).

The governor's recommended budget now comes under the consideration of the Joint Finance Committee (JFC), a 12-member group of lawmakers (eight Democrats and four Republicans). Over the next four to five months, the committee will hold budget hearings with every state agency, consider the legislature's own spending priorities, and pay increasing attention to state revenue estimates, which will be issued monthly, from March through June. Taking all those factors into account, the JFC will submit a modified state operating budget in June for a legislative vote, without amendment.

Rep. Spiegelman said keeping the lid on spending growth is now in the legislature's hands.

"I think this is going to take some discipline to keep the budgetary growth within what the governor is targeting," Rep Speigelman said. "We want our glidepath to be in line with sustainable growth, and to do that, it's going to require some uncomfortable conversations where we're going to have to say 'no' to things. That is not only going to involve the 62 members of the General Assembly, but also our constituents."

• To see a video of House and Senate Republicans reacting to the governor's budget proposals, click here.

• To see a copy of the governor's budget presentation, click here.

• For detailed information on the governor's spending plans, click here.

• To access the Joint Finance Committee budget hearings, which begin next week, click here.

IN PHOTO, FROM LEFT: State House Republican Leader Tim Dukes, State Senate Republican Leader Gerald Hocker, and State House Republican Whip Jeff Spiegelman discuss the governor's recommended FY 2027 budget.

NEWS

Regulatory Change Could Have Dire Consequences for Businesses and Consumers

-- Rule Change to be Discussed Wednesday --

A controversial change to a state regulation could threaten hundreds of jobs and lead to significant delays and increased costs for thousands of Delaware homeowners and businesses.

The proposed rule, originally published on Page 100 of the August 2025 issue of the state’s Register of Regulations, would require any contractor installing a low-voltage system to have the work performed by a licensed electrician.

Low-voltage wiring—typically under 50 volts—is used in a wide range of applications, including telephone systems, sound systems, cable television, closed-circuit video systems, satellite dish antennas, instrumentation and temperature controls, landscape lighting, networking, communication systems, and security systems. These systems are also low amperage, with little to no risk of causing a shock or fire hazard.

Under current Delaware regulations, low-voltage system installations are typically performed by trained technicians—a practice that has been in place for decades. The proposed rule change would mandate the use of licensed electricians to do the work.

The regulatory change was scheduled for discussion at the Delaware Board of Electrical Examiners' meeting last September, but the event was canceled, and consideration of the issue was postponed. The board is now scheduled to discuss it, under "unfinished business," during its meeting on Wednesday, February 4, 8:30 AM to 10:30 AM.

To access the agenda and details on how to attend the meeting or participate off-site, click here.

Commenting on the proposal last August, Charles Williams, owner of Creation Audio, emphasized that all of his company’s work, from audio systems to networking and Wi-Fi, is low voltage. "If this change were to take effect, I would be completely unable to do everything I do day-to-day. In practice, we’d cease to exist.”

Mr. Williams also noted the broader impact the regulation could have. “Theoretically, Mediacom (cable TV) would not be able to run a cable from the pole to the house. That’s low voltage. HVAC companies wouldn’t be able to run a wire for a thermostat. That’s low voltage, too. There is no justification for this."

According to the public notice originally posted with the proposed change, the low-voltage work that was “previously exempted from licensure is now included within the National Electrical Code. Thus, individuals performing the work described in the existing subsection must be licensed and are no longer eligible to be exempt.”

However, critics note that the National Electrical Code (NEC) is not federal law, but rather a model code developed by the private organization, the National Fire Protection Association. States and local jurisdictions have significant discretion in adopting, modifying, and enforcing these standards. In fact, it is this flexibility that creates a patchwork of electrical codes across the country, where neighboring jurisdictions, including municipalities in the same state, may operate under different versions of the code. 

This is not the first time Delaware regulators have attempted to grant licensed electricians exclusive responsibility over low-voltage systems. According to Kevin Short, owner and general manager of Mid South Audio, a similar effort was made in the late 1990s. After strong opposition at public meetings, the proposal was withdrawn. “That’s when the low-voltage exclusion was placed in the regulations,” he said.

Licensed electricians who specialize in installing, maintaining, and modifying power distribution systems may not be well-suited to low-voltage work. “It’s two separate jobs,” Mr. Short said. “They have a skillset and so do we, but the two don’t overlap.”

Associated Builders and Contractors, Delaware Chapter (ABC Delaware), has also expressed strong opposition to the proposal.

In a mid-August letter to the Delaware Board of Electrical Examiners, ABC Delaware President Jennifer Cohan warned of the potential fallout. “Low-voltage work is integral to technology infrastructure, security, and communications across our schools, hospitals, small businesses, and government agencies. Disrupting this workforce will delay projects, raise costs, and reduce competitiveness,” she wrote. 

“I am not aware of any state in the nation that requires a licensed electrician to install a doorbell, thermostat, or any other low-voltage device,” said State House Minority Leader Tim Dukes (R-Laurel), who learned about the issue through a constituent. “This is an example of regulatory overreach that would eventually harm every household and business by unnecessarily imposing higher costs.”

NEWS

House & Senate Democrats Override Governor's Veto of Disputed Bill, Against the Wishes of Black and Hispanic Groups

House and Senate Democrats broke with Democratic Governor Matt Meyer earlier this week, overturning his veto on a controversial labor bill and enacting it into law.

Senate Bill 63, as amended, prohibits employers from misclassifying workers as independent contractors to evade required payroll contributions and income tax, unemployment insurance, and workers’ compensation deductions. However, the new statute also makes contractors responsible for policing their subcontractors’ compliance with these laws, under threat of having their certificate of registration revoked by the state.

In vetoing the measure on August 28th, Gov. Meyer expressed concern that it risked “making good actors responsible for the wrongs of others,” and could produce unintended consequences for small, new, and minority-owned businesses and nonprofits, without addressing the root cause of wage theft. He also directed the Delaware Department of Labor to collaborate with stakeholders and develop recommendations to enhance enforcement under existing law.

House Republicans also took issue with the bill. Neither the bill’s original passage last June nor the veto override received any support from the caucus’s 14 members.

The governor was not the only one receiving a slap-down from legislative Democrats. The Delaware Hispanic Commission and the Delaware Black Chamber of Commerce had written to all lawmakers this week, urging them not to override the veto.

In its letter, the Delaware Hispanic Commission stated that while the group supported the bill’s intent, it noted the proposal’s structure posed serious risks: “Many Hispanic and Latino residents—especially those working in construction, landscaping, and similar trades—operate as independent contractors out of economic necessity, not preference. The joint liability provisions in SB 63 are likely to discourage general contractors from engaging with small, independent workers, effectively cutting off vital income opportunities for individuals who already face significant barriers to employment.”

The Delaware Black Chamber of Commerce shared additional concerns in their email: “While intended to protect workers, SB 63 would instead impose unfair liability on general contractors, increase costs, and disproportionately harm small and minority-owned businesses across Delaware’s construction industry.”

Under Delaware law, a veto override requires a three-fifths supermajority vote in each legislative chamber, or a minimum of 13 votes in the Senate and 25 in the House. The override cleared the Senate 15 to 6 and the House 25 to 15 (with one member absent). The vote was entirely along party lines, except for State Rep. Josue Ortega (D-Wilmington West), who opposed the action.

NEWS

Bill Would Give Boat Owners the Right to Repair their Vessels, Engines, Equipment

A bill introduced in the Delaware General Assembly this week seeks to break new ground in the Right-to-Repair movement.

The Delaware Marine Equipment Right to Repair Act (House Bill 279) is sponsored by State Rep. Rich Collins (R-Millsboro) and State Sen. Russell Huxtable (D-Harbeson, Lewes, Dewey Beach). The bipartisan legislation would require the manufacturers of boats, engines, and any specialized machinery and technical systems used with vessels to provide fair and reasonable access to the parts, tools, software, and documentation needed to conduct repairs.

If enacted, the bill would be the first right-to-repair state law focused on marine equipment.

Over the last decade, lawmakers in most states have introduced some form of right-to-repair legislation. The growing interest has been driven by consumer backlash as manufacturers have increasingly erected barriers to device repair, forcing owners to use company service centers, parts, and technicians. Consumers say they should be able to work on their own property and that monopolizing repairs has increased costs, lengthened delays, and forced them to purchase new equipment.

The focus and scope of right-to-repair bills have varied widely. Thus far, at least six states have enacted such laws: California, Colorado, Minnesota, New York, Oregon, and Massachusetts. Right-to-Repair proposals most often address consumer electronic devices, such as cell phones, but farm equipment, automobiles, and home appliances have also been targeted.

Equipment and device makers have maintained that allowing third parties to repair their products would expose proprietary information and risk the disclosure of trade secrets. In the case of engines and vehicles, critics of right-to-repair laws, including federal agencies, have argued that allowing third-party access would enable equipment owners to bypass features required to comply with safety and environmental regulations. 

“Delawareans have a long history of being able to repair their own cars, boats, and tractors,” Rep. Collins said. “I’ve spent countless hours in my own workshop doing all these tasks. Even as technology changes, our do-it-yourself heritage shouldn’t. In our state, especially Sussex County, marine equipment is vital to our economy, supporting both occupations and recreation. With people being increasingly squeezed financially, we need to preserve their right to fix their own property.”

Sen. Huxtable, the prime Senate sponsor of the proposal, had similar reflections on the legislation. "Delaware’s marine industry is essential to our coastal economy, yet too many boat owners and operators are being forced into monopolized repair systems that drive up cost and limit choices,” he said. “With HB 279, I’m proud to partner with Rep. Collins to apply those lessons to the marine industry. This bill is about consumer protection – giving people the power to repair, maintain, and operate their equipment without being subject to price gouging or unfair, monopolized pricing.”

House Bill 279 is pending action in the House Transportation Committee.