Governor’s budget makes targeted investments in education, housing, healthcare, and economic development

DOVER— Governor Matt Meyer today presented details and highlights from his recommended budget for Fiscal Year 2027. The budget reflects Governor Meyer’s principles of efficiency, transparency, and responsible budgeting, reducing the structural deficit and delivering a balanced budget. At the core of the Governor’s proposal is a commitment to making life more affordable for Delawareans, with targeted investments in education, housing, healthcare, and economic development.

“Government is supposed to make life easier for people, and that’s exactly what our budget does, with smart investments in our children, housing, healthcare, and workforce,” Governor Meyer said. “We’re proud to put forth a balanced budget that lays the groundwork for a stronger, more affordable, and more accountable Delaware, without sacrificing our values or cutting critical services.”

The Fiscal Year 2027 budget reduces Delaware’s structural deficit by more than 70 percent compared to Fiscal Year 2026 projections and keeps operating budget growth below five percent, marking a major step toward long-term fiscal sustainability. The plan also maintains a Rainy Day Fund of $366.5 million and a Budget Stabilization Fund of $469.3 million, ensuring Delaware remains prepared for future economic uncertainty.

To support working families, the budget invests $25.3 million in Purchase of Care childcare services, provides pay increases for all state employees to keep compensation competitive, and implements Year 3 recommendations from the Public Education Compensation Commission to raise teacher salaries.

Governor Meyer’s budget also allocates $8 million to the Literacy Emergency Fund and revamps the “Your Voice, Your Choice” program, in partnership with Donors Choose, including $3 million for teacher-driven projects.

In healthcare, the budget makes targeted Medicaid investments, expands access to care — particularly in rural communities — and supports initiatives to lower costs and expand food access programs.

The budget includes historic investments in affordable housing, homelessness prevention, and homeownership support, while prioritizing smart growth and revitalization in existing communities. It expands rental assistance for low-income families, strengthens homelessness response services, and maintains robust funding for the Housing Development Fund.

Governor Meyer’s Fiscal Year 2027 recommended budget reflects a deliberate shift toward leaner, more effective government operations. The proposal includes $168.7 million in targeted reductions, reprogramming, and one-time spending adjustments, along with more than $65 million in statewide savings achieved through operational efficiencies and responsible budgeting.

To sustain critical investments while protecting essential services, the budget proposes a responsible revenue package that modernizes business formation fees, updates tobacco taxes, adjusts the Escheat cap, and establishes a targeted film tax credit to support Delaware’s creative economy.

To see Governor Meyer’s full budget presentation, CLICK HERE.

For any questions, please email govcomm@delaware.gov.

DOVER, Del. – Governor John Carney on Thursday issued the following statement on the passage of Senate Bill 325 and Senate Bill 326:

“This budget continues our investments in Delaware’s public schools, workforce, and environment, while doing so responsibly and sustainably. We are continuing to raise salaries for teachers, provide more resources for students who need our help the most, and address rising health care costs, while setting aside reserves to protect Delaware taxpayers well into the future. I want to thank the members of the General Assembly and Joint Finance Committee, particularly chairs Senator Trey Paradee and Representative Kim Williams, for their leadership, partnership, and hard work.”

DOVER, Del. – Governor John Carney on Tuesday signed a $5.0 billion Fiscal Year 2023 operating budget for the State of Delaware, a sustainable financial plan that makes investments in Delaware public schools and education programming.

The operating budget, Senate Bill 250, includes pay increases for state employees, including 2% to 9% increases for all merit employees and increases for public school transportation drivers. All state employees will also be receiving a $500 one-time bonus.

The operating budget also includes increases in education programs including K-12 mid-year unit count and programming at the University of Delaware, Delaware State University, and Delaware Technical Community College.

Also on Tuesday, Governor Carney signed a $378.6 million one-time supplemental appropriation which includes funding for the implementation of paid family leave, funding for the Library Connection program – which will connect school libraries with the Delaware library catalog – and various contingency mechanisms.

“This is a sustainable budget that makes investments where they’re needed most, including public education and our higher education institutions,” said Governor Carney. “We’re also making historic movement of the merit pay scales in state government to make our workforce stronger and to further recognize the great work that state employees do every day. We also will be funding the statewide paid family leave program. All of these steps will help ensure Delaware is the best place to live, work, and raise a family. I want to thank the chairs and members of the Joint Finance and Bond Bill committees for their thoughtful work on this budget.”

Click here to view the Fiscal Year 2023 operating budget.

Click here to view the Fiscal Year 2023 one-time supplemental appropriation.

Click here to view photos from the signing ceremony.

###