Secure-choice retirement program, income tax deductions for saving both included

In releasing his Fiscal Year 2023 recommended budget, Governor Carney showed his support for two important initiatives of the Office of the State Treasurer.

Ensuring a way for all Delawareans to effectively save for retirement even if they have no access to an employer sponsored program, the Governor included funding to cover a portion of the startup cost of the Delaware Expanding Access for Retirement and Necessary Savings (EARNS) Program as proposed by House Bill 205. DE EARNS is a secure-choice program that amounts to State-facilitated, universally available retirement savings plans, providing a convenient way for all workers to save for retirement, particularly middle and low-income workers who lack access to employer-sponsored plans and small businesses that are unable to provide such a benefit.

“DE EARNS addresses three major priorities of my office; bolstering retirement security and readiness, creating pathways to economic empowerment, and promoting a culture of financial excellence,” said State Treasurer Colleen Davis. “I am grateful to the Governor and his budget team for including the necessary funding in their comprehensive spending plan.”

DE EARNS would be available to Delaware workers whose employers do not already offer a workplace retirement plan, self-employed individuals, and others who want an easy way to save. It will allow more people to save for retirement, reduce the need for additional taxes to fund public assistance programs, and even incentivize people to return to the workforce knowing a retirement plan will be available.

Sponsored by Representative Larry Lambert and Senator Nicole Poore, and endorsed by the Delaware AARP, League of Women Voters of Delaware, and Delaware Community Reinvestment Action Council, and others, H.B. 205 received approval from the House Labor Committee in June 2021 and assigned to House Appropriations.

The Governor’s recommended budget also included funding to offset tax benefits to Delawareans who contribute to two state-sponsored savings plans.

House Bill 145, sponsored by Rep. Krista Griffith and Sen. Paradee, creates a personal income tax deduction of up to $5,000 per year for contributions to a DEPENDABLE account, and up to $1,000 for contributions to a DE529 account.

“People with disabilities and their families use Achieving a Better Life Experience (ABLE) accounts to save for the future without jeopardizing their state and federal benefits, so in a sense, this tax deduction can be even more worry-free money to save,” said Treasurer Davis. “The deduction for contributions to DE529 accounts shows we value education but don’t want to see our graduates burdened with student loan debt.”

House Bill 145 passed the House in June 2021, was reported out of the Senate Education Committee, and then assigned to the Senate Finance Committee.

Plan focuses on strengthening economy, expanding opportunity, supporting families and workforce

WILMINGTON, Del. – Governor Carney on Thursday presented his Fiscal Year 2023 Recommended Budget virtually, sending the General Assembly a plan that will strengthen Delaware’s economy, expand opportunity, and supporting Delaware’s families and workforce.

“We made it through the worst of the pandemic without cutting services or raising taxes. Responsibly managing our state budget is more important than ever. This budget proposal will do just that,” said Governor Carney. “Delaware will come out stronger through this pandemic. That’s why we’re investing in economic development to prepare our state for the economy of the future. That’s why we’re continuing to invest in Delaware’s children, families and workforce. And that’s why we’re investing in protecting Delaware’s natural heritage. I want to thank members of the General Assembly for their partnership and for their consideration of this budget.” 

Fiscal Year 2023 Budget Highlights

• General Fund Operating budget totals $4.9 billion, limiting growth to 4.6%
• Sets aside over $15.2 million in reserves (after projected cash to bond bill and grant in aid)
• Appropriates $215 million toward one-time items in a separate supplemental appropriation bill
• Takes continued steps toward providing compensation and pay equity for state employees
• Increases Opportunity Funding investments in our schools for low-income students and English language learners
• Continues investments in clean water, economic development and fulfills our commitments to new school construction in all three counties
• Continues to fund secure and modern spaces for Kent and Sussex County courthouses

Preparing for the Economy of the Future

• Invests $60 million in economic development, including:
  • $30 million in strategic fund
  • $10 million in site readiness
  • $10 million in graduation lab space
  • $10 million in transportation infrastructure fund

Environmental Initiatives

• Invests $404.7 million in environmental justice, including:  
  • $30 million in aglands preservation and open space
  • $7.5 million in shoreline and waterway resiliency
  • $367.2 million in clean water, including $355 million in federal funding

Investing in Delaware’s Children

• Invests $339.9 million in funding school projects, including $19.8 million for the Wilmington Learning Collaborative and Redding Consortium
• Increases funding by $4.5 million for low-income students and English learner students towards achieving the goal of doubling opportunity funding by 2025
• Invests $20.6 million to support mental health service units for elementary schools
• Invests millions in Delaware’s higher education institutions including capital improvements, technology upgrades, scholarships, and investments into the Higher Education Economic Development Investment Fund

Supporting Delaware Families

• $1.4 million to support extended post-partum Medicaid coverage
• $1.5 million for the development of a therapeutic foster care program
• Nearly $1 million to support the growth of Delaware Healthy Children Insurance Program (CHIP)
• $3.7 million to support expungement programs

Supporting Delaware’s Workforce

• Investing $88.7 million in compensation and pay equity to move toward a $15 minimum wage for state workers, increase to merit pay scales or 2% pay increase
• Supporting Health Care Workers
  • $500,000 to increase funding for the Health Care provider State loan repayment program
  • $300,000 to permanently fund the mental health services loan forgiveness program
• Supporting Child Care Providers & Workers
  • $11.5 million in increased support for child care providers and workers

Click here to download Governor Carney’s Fiscal Year 2023 budget presentation.

Click here to watch Governor Carney’s virtual budget presentation.

Largest infrastructure plan in Delaware history will invest in roads, schools, clean water, broadband

DOVER, Del. – Governor John Carney on Wednesday signed a $4.7 billion Fiscal Year 2022 operating budget for the State of Delaware, a sustainable financial plan that makes historic investments in Delaware public schools and sets aside $286 million in new savings to prepare for future economic and revenue downturns. 

The operating budget, House Bill 250, includes funding for expansion of Delaware’s Opportunity Funding program to provide additional classroom-based support for low-income students and English learners statewide. By Fiscal Year 2025, funding for the program will more than double to $60 million annually.

Also on Wednesday, Governor Carney signed a $1.3 billion capital budget — the largest capital infrastructure plan in Delaware’s history. Senate Bill 200, the capital budget, includes more than $245 million for school construction statewide and makes significant investments in roads and bridges, farmland preservation, clean water upgrades, economic development, state parks improvements and high-speed broadband expansion in rural communities. 

“This is a sustainable budget that makes investments where they’re needed most, including in our public schools statewide, and prepares us for the future,” said Governor Carney. “We’re also making our largest-ever infrastructure investments, which will create good jobs and attract economic investment across our state. And we worked with legislators to set aside additional reserves to make sure we’re again prepared next time we face a crisis. I want to thank the chairs and members of the Joint Finance and Bond Bill committees for their thoughtful work on this budget in such an unusual year.”

Click here to view the Fiscal Year 2022 operating budget.

Click here to view the Fiscal Year 2022 capital budget.

Click here to view photos from the signing ceremony.

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Plan focuses on rebuilding economy and reserves, investing in education and environment

WILMINGTON, Del. – Governor Carney on Thursday presented his Fiscal Year 2022 Recommended Budget virtually, sending the General Assembly a plan that will make important investments in rebuilding Delaware’s economy, investing in public schools, and preserving our environment.

Click here to download Governor Carney’s Fiscal Year 2022 budget presentation.

“When the COVID-19 crisis hit, we were able to balance our budget without cutting critical services because we kept our promise to build a long-term, sustainable financial plan. This budget proposal will continue to protect taxpayer dollars while making investments where they’re needed most,” said Governor Carney. “Our priorities remain the same. We will rebuild our economy and create good jobs, invest in our public schools for all Delaware children, and strengthen communities across our state. This proposal includes the largest infrastructure program in Delaware history, historic investments to support disadvantaged students, and additional investments to clean up our drinking water and preserve farmland. We’ll also continue to support our state workers, who have stepped up for their neighbors time and again throughout this crisis. I want to thank members of the General Assembly for their partnership and for their consideration of this budget.” 

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In accordance with 29 Del. C. §6332, the Office of Management and Budget (OMB) will hold virtual public hearings from November 9, 2020 through November 20, 2020 to review and take public comment on each state agency’s Fiscal Year 2022 budget request. A complete calendar of these virtual public hearings can be found here

Notification of the hearings has been posted on the Delaware Public Meeting Calendar. Information about how to view each hearing will be posted to the calendar notice a few days in advance of each hearing. In addition, copies of agency budget narratives can be found here. After each hearing, a copy of the agency’s presentation and a recording of the hearing will also be placed at that site.

The public will be invited to comment at each public hearing during a designated time that will occur after the agency’s presentation. An individual will be allotted three minutes to speak, if on behalf of an organization, or two minutes to speak, if unrelated to an organization. Comment can be presented either orally during the designated time or in written format.

Anyone interested in providing public comment must register prior to the hearing via email at OMB.BudgetHearing@delaware.gov. The following information is required to register for public comment:
o Name
o Organization (if speaking on behalf of)
o Comments in writing (optional)