Joint Finance Chairs say FY27 budget is “a reflection of our values”

FOR IMMEDIATE RELEASE | June 2, 2026
Contact: Sarah Fulton (302) 401-1114

DOVER — Following the conclusion of the budget writing markup period, Joint Finance Committee Chair Sen. Trey Paradee and Co-Chair Rep. Kim Williams outlined the highlights of the FY27 operating and one-time supplemental budget.

“This year’s budget is, simply put, a reflection of our values,” said Sen. Paradee. “With the backing of strong revenue projections following the May DEFAC meeting, we are proud to propose a budget that fully funds so many of the critical services that make Delaware a great place to live. This budget supports our state workers and retirees, transforms how we fund our schools, and prioritizes keeping our neighbors safe and healthy.”

Investing in State Workers with Competitive Salaries and Benefits

• $146.9 million added to provide pay policy for state employees, including:
• For the sixth year in a row, state employees will receive a pay increase, with all merit employees receiving a 3% raise.
• Education employees receive a minimum of a 3% raise, but teachers, nurses, etc., and non-administrator classroom staff receive additional raises as recommended by the Public Education Compensation Commission (PECC), continuing the promise toward teacher starting salaries of $60,000.
• Salary recommendations of the 2025 Compensation Commission Report, negotiated collective bargaining unit increases, and statutory step increases are fully funded
• Over $16.2 million added to cover the state share of state employee and state retiree health insurance premiums to ensure existing health benefits remain intact.

Providing Assistance to State Retirees

• $65.8 million toward OPEB Investments, ensuring healthcare for state retirees and reducing long-term liability
• $72 million in Post Retirement Increase Funding to fully fund a post-retirement increase for state pensioners.
• 1% increase for those retired between June of 2021 and 2006; and
• 2% increase for those retired prior to June 30, 2006.
• $6 million toward a 0.25% rate of payroll to rebuild funds in the Post Retirement Increase Fund for future retiree raises.

Investing in Healthcare and Healthy Communities

• $128.5 million added to cover increases in statewide Medicaid service needs.
• $34.1 million added for health services increases in the Department of Correction.
• $14.6 million for residential habilitation, community-based services, growth, and to clear personal attendant services waitlists to support statewide developmental disabilities services.
• $10.5 million for Direct Support Professionals Rate Increases (McNesby Act).
• $54 million in additional spending authority for Hospital Quality Assessments to support healthcare system sustainability.

Supporting Our Youngest Delawareans

• $26.4 million invested in child care policy changes to support both Delaware families and childcare providers, bringing the total state support to Purchase of Care $107 million.
• $600,000 in school wellness centers, kindergarten oral health screenings, additional seats in the Delaware Institute for Dental Education and Research (DIDER) program, as well as outreach services for the deaf, hard of hearing, and deaf-blind community.

Supporting Our Students 

• This budget continues Delaware’s strong investment in public education with more than $2.5 billion toward the pre-k to 12 population, just over 140,000 enrolled students, including:
• $26 million added to restore a Fiscal Year 2018 budget reduction to Division II units, allowing all districts and charters immediate financial support toward school operations. 
• $8 million in continued Early Literacy Funding to address our youngest learners.
• $800,000 added to supply rental vouchers to families with school-age children living in shelters and motels.

• This budget also support higher education and workforce readiness through:
• $5 million added for Delaware State University operations.
• $1.5 million added for adult education and workforce training at the vocational school districts.
• $1.2 million added for Delaware Technical Community College compensation stabilization.

Prioritizing the Safety of Our Law Enforcement Officers and Public Safety

• $2.8 million added for Delaware State Policy Body-Worn Camera contract increases.
• $2.2 million in authorization added for additional security staffing at transit facilities and DMV locations.
• $2.4 million added to support preventative detention and bail reform implementation.

Strengthening Government Accountability

• $1.3 million to fund the State’s new Office of the Inspector General.
• Additional staff support at the Auditor of Accounts’ office to continue in-house audit engagements.

Delivering a Responsible Budget that Invests in Delawareans

The Joint Finance Committee continues efforts to find efficiencies and reductions where possible, including:

• Reducing vacant positions that have been vacant for greater than 3 years (37 General Fund Positions), resulting in a budget reduction of nearly $2 million.
• Over $5 million in targeted contractual reductions/savings.
• Maintaining a strong balance in the Stabilization Fund to ensure there is a reserve available amid federal funding uncertainty.
• Ensuring Budget Reserve (Rainy Day) Fund is fully funded.
• Applying additional resources toward capital project needs statewide.

“This budget represents smart and responsible growth that invests in communities throughout our state. It shows the impact of our efforts that while we have continued investing in our core values, we are able to reduce statewide vacant positions, have targeted reductions of $5 million in contractual savings, maintain a strong stabilization fund and budget reserve,” said Rep. Williams, Co-Chair of the Joint Finance Committee. “With the work of the administration and our colleagues, this budget and one-time supplemental bill provides an investment in today and tomorrow. Our support of childcare with $26.4m shows our continued commitment towards supporting working families. We also set aside funds for the updated funding formula as recommended by the Public Education Funding Commission through restoring a previous reduction of $26 million in FY’18 of Division II Units for districts and charters and $100 million in additional one-time funds. This critical work will best serve students throughout the state for years to come.”

The one-time supplemental budget includes a total of $146 million in one-time funding for statewide needs, including:

• $100 million toward future education formula adjustment as the state moves toward a weighted funding formula model as recommended by the Public Education Funding Commission (PEFC).
• $8.3 million toward upcoming primary and general elections.
• $8 million toward the Delaware Early Childhood Care and Education Alliance. 
• $5 million in operations support for Delaware State University
• $3.4 million toward SAT reform efforts to modernize Delaware assessments.
• $3 million to fund teacher driven projects – allowing teachers to request funding for classroom needs as they see fit.
• $2 million for residential and childhood lead prevention and remediation.
• $1.9 million toward upgrading the Department of Elections’ campaign finance system.

The operating budget and one-time supplemental budget bills will be filed in June following the June DEFAC meeting.

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