Delaware budget bill passes House, heads to Senate

Dover, Del.  -The Delaware House has passed a $5.6 billion operating budget for fiscal 2024, approving a spending plan that provides a meaningful raise for state workers and invests in families throughout the state, schools, healthcare workers, firefighters, educators, and people with disabilities.

The budget, along with a $194.5 million supplemental spending plan consisting of one-time expenditures and contingency funds, now head to the Senate for consideration.

“The Joint Finance Committee had a difficult task of balancing numerous, worthwhile funding requests against the need to be responsible. We’ve been able to work together to provide – for the second consecutive year – a real raise for state employees and fund various programs that provide necessary services to residents up and down our state,” said Joint Finance Committee Co-Chair Rep. William Carson. “I’m proud of this budget and what it represents to Delawareans – that we value our workers, teachers, seniors, healthcare workers, parents, and children.”

The operating budget, House Bill 195, is the result of months of public hearings and meetings to review Governor Carney’s spending plan, which he proposed in January, and to solicit input from state officials, lawmakers, and the public about how to best invest revenues. The fiscal 2024 budget represents a 9.9% increase from the current budget.

“The FY 2024 operating budget is a fiscally responsible spending plan that will make critical investments in our state workforce, the education of our children, and the long-term health of our neighbors, while also positioning Delaware to weather any economic turmoil coming our way in the next few years,” said Joint Finance Committee Co-Chair Sen. Trey Paradee. “I want to thank my colleagues on JFC for remaining steadfast in their commitment to balance these investments in Delaware’s future against our need to hold the line on spending from one year to the next. I’m grateful to the House for passing this budget, and I look forward to the Senate passing it in the coming days.”

HB 195 would add $10.2 million to Delaware’s Purchase of Care program, a subsidy that provides support for early childhood and after-school education for children from birth through age 12 living within 185% of the Federal Poverty Limit. The funds help low-income families pay for their childcare so that parents or guardians can work or receive workforce training.

The budget also includes an additional $30 million to increase mental health support in elementary and middle schools as spelled out in bills passed during the previous legislative session.

As part of the budget, full-time state workers would receive a raise ranging from 3% to 9% depending on their pay grade, with the lowest grades receiving higher percentage raises. Collective bargaining units would receive raises according to whatever they have negotiated. Education employees would receive a 3% raise and applicable step increases, while teachers would receive an additional 6%. The budget also establishes a $15 minimum wage for merit full-time state employees.

Delawares Director of Finance Rick Geisenberger says the budget was carefully chosen to not overextend the state’s finances heading into an expected downturn in 2025.

He tells us the final DEFAC  revenue forecast for this year, was better than expected at a surplus of 84 million. 

“We have some extra money available this year to do some one-time projects particularly in the bond bill but not a lot of revenue or any revenue really to add into the budget,” he said adding a large amount of funds came from unspent revenue from 2023.

He tells us that will mean a bump for one-time projects for divisions such as DelDot, as part of the bond bill and other non-recurring capital spending.

He tells us the reason many of the programs were able to be funded was due to the restraint the state showed during two back-to-back years of record revenue in 2021 and 2022.