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NEWS:
Debate Over State’s Money Bills Becomes Confrontational as the End Nears
As the current fiscal year draws to a close on Monday, tensions are rising over the passage of the state’s two largest annual appropriations bills.
General Fund Operating Budget
The legislature passed the General Fund Operating Budget (House Bill 225) for Fiscal Year 2026 this week. The $6.58 billion plan represents a $451.6 million, or a 7.36%, increase over the current budget.
The new budget allocates funding for several newly created state agencies, including the Office of the Inspector General, the Department of Veterans Affairs, and the Office of Suicide Prevention. Senate Bill 4, which establishes the Office of the Inspector General, has passed the Senate and is currently on the House Ready List. Bills to create the Department of Veterans Affairs and the Office of Suicide Prevention have been approved by the legislature but are awaiting the governor’s signature.
Budget-writers identified 300 state positions that had been vacant for at least three years. Of these, 46 were related to the COVID response and removed; another 82 were eliminated altogether, returning $4 million to the General Fund. In the future, the Joint Finance Committee will examine persistently vacant positions annually during the budgeting process.
The budget preserves two reserve funds: $469 million in the Budget Stabilization Fund, intended for short-term revenue gaps; and $365 million in the Rainy Day Fund, reserved for emergency needs.
However, concerns are mounting over the pace of state spending. Over the past three years, the operating budget has grown by more than $1.48 billion, a 29% increase. Compared to a decade ago, the new budget is up by $2.672 billion, or approximately 68.4%.
“Our budget growth is still at a level that is really unsustainable,” said State House Republican Whip Jeff Spiegelman (R-Townsend, Smyrna, Clayton). “Last year, we passed a bill, House Bill 350, to put constraints on hospitals that they have to stay within their budget growth benchmarks, yet we still don’t stay within ours.”
State Rep. Lyndon Yearick (R-Camden, Wyoming, Woodside) acknowledged the Joint Finance Committee had grappled with complex challenges and praised many of the budget’s allocations. “That being said, it’s hard for me to justify a ‘yes’ vote on the budget…Judgment Day is coming soon, whether that means increasing taxes or cutting spending growth.”
Five House Republicans, Reps. Ron Gray (R-Selbyville), Rich Collins (R-Millsboro), Lyndon Yearick (R-Camden, Wyoming, Woodside), Jesse Vanderwende (R-Bridgeville, Greenwood), and Bryan Shupe (R-Milford South) voted against the bill, which passed 35 to 5.
Governor Matt Meyer is reportedly dissatisfied that more of his priorities were not included in the budget. If it is not enacted by Monday night, all but essential state services would be suspended.
Bond Bill (Capital Budget)
Earlier this week, House Republicans blocked an attempt in the Senate to pass the $977.3 million state capital budget (Senate Bill 200), commonly called the Bond Bill.
Because the Bond Bill relies partially on borrowed money (bond sales) to finance state construction and infrastructure projects, it requires approval from at least 75% of each legislative chamber. In the 21-member Senate, where Democrats hold 15 seats, 16 votes are needed for passage.
With a 15–to-6 split, Senate Republicans are using their marginal leverage to contest a bill expected to reach the House floor on Monday.
Senate Bill 159 would reverse a Sussex County Council decision denying a conditional-use permit for an electrical substation in Dagsboro. The facility would connect a proposed offshore wind farm and the regional power grid.
Four of the six Senate Republicans represent Sussex County districts. In a statement released today, the caucus again voiced its opposition to “stripping local communities of their voice to satisfy a narrow, and notably ineffective, environmental agenda.”
The proposed wind project—expected to include more than 120 turbines—has sparked concern over its impact on southeastern Delaware's tourism economy and potential harm to marine and bird life. The county council denied the permit, in part, on the basis that the energy produced would benefit Maryland residents, not Delawareans.
Because many Bond Bill projects are already underway and previously received funding, the measure does not face the same urgency as the operating budget. Its enactment can be delayed beyond the start of the new fiscal year with fewer consequences.
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