Delaware lawmakers on Tuesday passed the state’s $5.6 billion operating budget for fiscal year 2024, a nearly 10% increase from the previous budget.
It funded all of Gov. John Carney’s main priorities, particularly raises for teachers and an increased investment into early childhood education. About $30 million was appropriated for both mental health resources in schools as well as for covering the costs of growing school populations.
The General Assembly has also approved $194.5 million in one-time funding.
Though the budget overwhelmingly passed in both chambers, and now heads to the governor’s desk, lawmakers warned of possible budgetary issues next year. The Delaware Economic and Financial Advisory Council predicted earlier this month a decrease in revenue next year.
Sen. Trey Paradee, a Dover Democrat and vice chair of the Joint Finance Committee, said there’s a projected $250 million decrease in revenue, with the JFC committee already aware of $300 million in expected expenses for next year’s budget.
Those expenses, he said, “are going to be very difficult to avoid.”
The Legislature is constitutionally mandated to pass a balanced budget each year, making it the most important legislative priority. Lawmakers are also required to pass the bond and grant-in-aid bills before June 30.
The bond bill funds capital projects, while the grant-in-aid bill gives money to nonprofits.
What’s in Delaware’s budget?
The budget will include a 9% raise for Delaware teachers, who have the lowest average starting salary in the region. Other state employees, for the second year in a row, will receive a raise ranging from 3% to 9%.
Twenty million dollars will go toward lower-income students and English learners at Delaware public schools as well as the Wilmington Learning Collaborative, a governing board that plans to oversee and improve outcomes for children in schools that are within city limits.
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Just over $6 million in the budget will double the number of half-day pre-kindergarten seats available in the Early Childhood Assistance Program. The budget also allocated $10.2 million to increase the state’s purchase of care rate. This is an early childhood and after-school education subsidy for about 15,000 children living within 200% of the federal poverty limits.
Bus drivers will also see a raise in their minimum hourly rate, increasing to $22.50 an hour.
There will be no tax increases this year.
What else is going into the budget?
- $48.7 million to cover Delaware’s portion of state employee and state retiree health insurance premiums as these health care benefits will remain the same.
- $8 million to increase Medicaid reimbursement rates for home health and personal care aides
- $5 million for nursing homes, with an additional $7.5 million coming in federal funding
- $2.2 million for the creation of the Office of the Marijuana Commissioner and funding to implement recreational marijuana legislation for other state agencies
What’s going into the one-time supplemental?
- $30 million to address Delaware’s affordable housing crisis
- $50.9 million dedicated to the Other Post-Employment Benefits Trust Fund, which will go toward the long-term liability costs related to retiree health benefits
- $13 million for technology updates for state agencies
- $3.8 million for lead remediation in schools, with another $2 million for residential homes
