Enacted Budget – Fiscal Year 2025
On June 30, Delaware Governor John Carney signed the state’s fiscal 2025 budget. The budget provides for $6.1 billion in general fund operating spending, representing a roughly 9.3 percent annual increase, as well as $168 million in one-time expenditures provided in a supplemental appropriation bill (a 13.5 percent decrease), $98.4 million in a grants-in-aid bill, and a $1.1 billion capital budget. The state’s latest revenue forecast released in June 2024 estimates general fund revenues totaling $6.45 billion in fiscal 2025, a 1.3 percent increase over fiscal 2024. This session, legislation was also enacted to codify the state’s Budget Stabilization Fund to be used during times of economic downturn; the fund balance is projected to grow in fiscal 2025 to $469 million. This fund is separate from the state’s Budget Reserve Account, which had a balance of $329 million as of June 2024.
The enacted budget continues investments in key priorities including public education, workforce, and health care. The budget funds a third year of state employee compensation increases, raising pay for all merit employees by 2 percent, and fully funds collective bargaining units and statutory step increases. Educators will also receive a 2 percent raise, resulting in an 11 percent base salary increase over the last two years, while the budget sets aside $50 million in reserve to fund future teacher pay raises. The budget also invests in Medicaid rate increases for long-term care facilities, direct support professionals who serve people with disabilities, and home health and personal care workers. Additional investments include funding to increase child care assistance for low-income families and early childhood program capacity, as well as funding to continue enhanced mental health support in public schools. Other education spending initiatives funded in the budget include: additional Opportunity Funding that supports low-income and multilingual students; an increase in SEED and INSPIRE scholarship program funding, as well as the First State Promise scholarship program; and funds to hire literacy coaches and provide training.