NEWS:
Recapping the State's Major Money Bills
The Operating Budget
Late Monday evening, the governor signed the General Fund Operating Budget (House Bill 225, with HA 1) for Fiscal Year 2026. 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. Bills to establish all three agencies were approved by the General Assembly and are awaiting the governor’s signature.
The operating budget also includes funding for:
- A 2% raise for state merit employees
- Another installment of a multi-year plan to increase teachers’ starting salaries to $60,000 by 2027.
- Continuing the state’s Opportunity Grants, funding the intensive instructional needs of English Language Learning and low-income students.
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.
Public education remains the largest single category in the budget, accounting for more than one-third of General Fund spending. There is $2.389 billion allocated for the state’s share of schools, or 36.3% of the total.
The Department of Health and Social Services is second, with $1.752 billion, or 26.6% of the operating budget. The bulk of this appropriation is for the state’s portion of Medicaid ($1.080 billion). According to KFF, total Medicaid and CHIP enrollment in Delaware was 252,239 as of June 2024, representing approximately one out of every four state residents.
However, concerns are mounting over the pace of state spending. Over the past three years, the operating budget has increased by more than $1.48 billion, representing a 29% rise.
Bond Bill (Capital Budget)
The $977.3 million state capital budget (Senate Bill 200), commonly referred to as the Bond Bill, is somewhat smaller than the $1.1 billion plan it replaces, which had been the fourth-largest in state history.
More than a third of the Bond Bill is paid for with cash ($368.3 million from the General Fund), $339.1 million in debt through the sale of bonds, $57.2 million reallocated from previously funded items, and $212.6 million for road and bridge projects paid for via the Transportation Trust Fund (tolls, vehicle-related fees).
Some items of note include the following:
- $20 million for the Community Reinvestment Fund
- $50 million for a state IT project that will move some information management functions to a cloud-based platform.
- $19 million for the Housing Development Fund (Affordable Rental Housing Program)
- $90 million ($30 million each) for DelTech, the U of D, and DelState for capital projects and maintenance
- $148.2 million for road projects
Grants-in-Aid
The latest Grants-in-Aid bill totals nearly $98.3 million, slightly smaller than last year's record-setting $98.5 million allocation.
The omnibus measure issues grants to hundreds of Delaware nonprofit groups performing work ranging from historic preservation and substance abuse treatment to emergency services and programs for veterans, seniors, and youths.
“These grants touch the life of every Delawarean in some way,” said State Rep. Charles Postles (R-Milford, Frederica), in photo, a member of the Joint Finance Committee that crafted the bill. “This targeted appropriation empowers hundreds of nonprofits to deliver critical services, yielding valuable dividends for our communities that far exceed the investment."
The GIA funding includes nearly $21.3 million for paramedic operations, $9.57 million for senior centers, $13.2 million for fire companies and public service ambulance companies, and $839,000 for veterans organizations.
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