Joint Finance Committee Conclude Budget Markup Process
June 4, 2025/
The Joint Finance Committee has concluded their budget markup process. This is when lawmakers review the governor’s recommended budget and vote on funding requests – writing the FY 2026 operating budget. The committee had a challenge with a budget from outgoing Governor John Carney and one from incoming Governor Matt Meyer. The committed used Governor Carney’s proposed budget as the framework while incorporating many of the priorities and initiatives included in Gov. Meyer’s budget reset proposal.
The proposed FY 2026 budget does not include raising income taxes and maintains the Budget Stabilization Fund at $469.2 million and the Rainy Day Fund at $365.4 million
Additional information from the House Majority Caucus:
“What we ended up with is a responsible, balanced budget that makes smart investments in the things that matter most to our state and the residents who call it home. We’re supporting our state workers and educators, giving our students the resources they need to thrive, expanding services for those who need help the most, and making sure Delawareans see their tax dollars put to good use.
“Specifically, we voted to approve the following key provisions:
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At least a 2% raise for all education employees, with teachers, nurses, and non-administrator employees receiving additional raises as recommended by the Public Education Compensation Committee, continuing the promise toward teacher starting salaries of $60,000.
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A 2% raise for state merit employees.
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$33 million to cover projected growth in our schools.
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$1.35 million for residential lead remediation.
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$2 million to support victims’ services agencies who have seen reductions due to federal cuts.
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$61 million for the Other Post-Employment Benefits (OPEB) Trust Fund to ensure quality healthcare for our state retirees and reduce the long-term liability.
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$85 million to continue providing healthcare to those covered by the state’s Medicaid program.
“In addition, the Committee voted to fund two central pillars of Governor Meyer’s budget reset:
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$8 million for the Literacy Emergency Fund, with priority given to schools that have the lowest levels of literacy proficiency and $3 million for direct support of classroom-based literacy practices.
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An additional $2 million in funding for additional vouchers with the State Rental Assistance Program.
“Every budget is about making choices – and that was especially tough this year with so much uncertainty at the federal level and forecasts pointing to slower revenue growth for the state.
“But fortunately, we were able to fund many of Delawareans’ top legislative priorities, including the creation of several new state offices that will strengthen public trust, improve access to services, and help save lives. These include the Inspector General’s Office, the Office of Veterans Affairs, the Grant-in-Aid Subcommittee, and the Office of Suicide Prevention. We were also able to allocate $3 million to cover universal free breakfast for Delaware students.
“And we accomplished this all without raising income taxes. We stayed within Governor Meyer’s budget reset growth and maintained the Budget Stabilization Fund at $469.2 million and the Rainy Day Fund at $365.4 million, so we’re ready for whatever the future brings.
“Together, we have developed a budget-writing process that favors transparency and efficiency. We also took seriously our responsibility to be good stewards of taxpayer dollars and that meant reducing state vacancies, making cuts where it made sense, and directing eventual revenue from legal cannabis sales into the General Fund, where it can support essential services for all Delawareans.
“We’re proud of the work that’s been done over these past several days, and we look forward to moving this budget through the legislative process in the weeks ahead.”