Governor Carney Issues Statement on General Assembly Passage of Fiscal Year 2021 Budget

WILMINGTON, Del. – Governor John Carney on Wednesday issued the following statement on the General Assembly’s passage of the Fiscal Year 2021 operating budget:

“This has been a difficult several months for Delaware, to be sure. I want to start by thanking members of the General Assembly – and especially members of the Joint Finance Committee – for their work under challenging circumstances to pass a responsible, balanced budget. My priorities for the budget have been consistent. Despite significant revenue challenges related to the COVID-19 crisis, we intended to protect critical investments in public education, and to protect the jobs and livelihoods of Delaware’s state workers. This budget will do just that.

We are not laying off state employees, or cutting their benefits. State workers have been on the front lines of this crisis, and we owe them our gratitude. We will also continue investments to support students and educators statewide through our Opportunity Funding program. This program supports students living in poverty, and students who are still learning English. I can’t think of a more important investment in Delaware’s future.

We were only able to continue these important investments because we acted responsibly in good times, and set aside surplus revenue into savings. We should continue to act responsibly. Let’s get the other budget bills done. The grants-in-aid bill provides critical funding for fire companies, senior service organizations, and other critical service providers that Delaware families rely on every day. They deserve our support, especially during this uncertain time. The capital budget makes investments in infrastructure statewide – in school construction, road and bridge improvements, and farmland preservation. Those investments will strengthen our economy and our communities. Let’s move forward.”

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Governor Carney Presents Fiscal Year 2021 Recommended Budget

Plan includes important investments in education, economy, and environment, while building new reserves

DOVER, Del. – Governor John Carney on Thursday presented his Fiscal Year 2021 Recommended Budget, sending the General Assembly a financial plan that will make important investments to strengthen our economy, improve public schools for all Delaware children, and protect our environment – while setting aside additional reserves.

“We presented a responsible budget plan today that makes investments to improve our economy, strengthen our public schools, and protect Delaware’s unique quality of life,” said Governor Carney. “This plan makes significant new investments to clean up Delaware’s drinking water and waterways. We are also investing in new school construction, and in classrooms throughout the state – not only because it’s the right thing to do, but because the future of our state depends on the success of our children. And we’re continuing to make capital investments to modernize our roads, bridges, and public transit. But we are also we continuing our responsible budget plan, which sets aside $161.5 million in savings to help prepare for years when our revenue trends downward. This is a balanced, responsible plan that I look forward to discussing with members of the General Assembly.”

Download the budget presentation and follow along.

Key proposals in Governor Carney’s financial plan:

Historic Priority Investments

Clean Water: $50 million to establish a Clean Water Trust account to clean up Delaware’s drinking water and waterways. Includes increased funding for low-income and underserved communities. The recommendation includes the following:

  • $22.5 million for the Drinking Water State Revolving Fund
  • $22.5 million for the Clean Water State Revolving Fund
  • $5 million for Resource, Conservation and Development

Wilmington Schools Initiative: $50 million to support children in the City of Wilmington who need help the most. This funding will build upon previous year’s appropriations and will be directed toward the following:

  • Building a new state-of-the-art school on the East Side of Wilmington
  • Extensive renovations at Stubbs Elementary and Bayard Middle Schools
  • Establishing a dual-generation center at Stubbs Elementary school to serve students and families
  • Establishing a workforce training center for the Gulftainer/ILA partnership at Palmer Elementary

Strong and Growing Economy: $50 million to ensure Delaware remains competitive through modernizing infrastructure, focusing on small businesses and fostering a culture of innovation and entrepreneurship. Recommended funding includes:

  • $20 million for the Delaware Strategic Fund to further economic development and small business EDGE Grants
  • $10 million to expand Graduation Laboratory Space to drive bio-tech innovation and entrepreneurship
  • $10 million for Site Readiness so businesses have options to locate and expand in Delaware
  • $10 million for the Transportation Infrastructure Investment Fund to improve public infrastructure to support job-creating economic development projects
  • Capital Transportation Plan: $4.5 billion through 2026 to modernize Delaware’s transportation system

Improving Our Schools for All Delaware Children

Opportunity Funding: Second year of a three-year commitment dedicating $75 million for English learners and low-income students, and mental health supports

Increasing Access to Pre-K:

  • $2 million to provide 155 new quality child care seats
  • $3 million for Early Childhood Assistance Program capacity building
  • Goal: increase access by 50% in three years

Investing in Educators: $29 million – 2% pay increase and steps for public school educators

Investing in Schools:

  • $183.7 million – School construction and renovations in districts across the state
  • $36.5 million – Current year growth and projected school year 2020–2021 enrollment growth
  • $4.6 million – School Technology infrastructure

Partnering with Higher Education:

$20 million – Funding for the Higher Education Economic Development Investment Fund to supplement investments that Delaware’s institutes of higher education are making to improve job growth and economic development in the State

Protecting Our Quality of Life

Open Space and Farmland Preservation: $20 million to continue investments to preserve open space and farmland across Delaware
Affordable Housing and Strong Neighborhoods: $14 million toto clean up and restore abandoned properties, attack blight, and provide options for all Delawareans to live safely in communities
Downtown Development Districts: $5.6 million to continue to encourage private investment in our towns and cities
Public Safety Communications: $8.3 million to enhance communication systems
Security in DOC Facilities: $4 million for security cameras
Municipal Street Aid: $4 million to improve local roads

Long-Term Financial Sustainability

Based on Executive Order 21, the amount available for the operating budget is calculated based on an index relative to the overall economy to help reduce budget volatility. Any revenue above the index will be directed to one-time investments and savings. Governor Carney has recommended setting aside $161.5 million over and above constitutional limits on appropriations, and limiting operating budget growth to 3.99 percent. This is less than the appropriation benchmark calculated by the Delaware Economic and Financial Advisory Council.

Investing in our Workforce

Investing in State Employees: 2% pay increase for State employees
Continued support of Paid Parental Leave: Over 200 employees have taken advantage of the benefit to spend time with their newborn babies and young adopted children

Investing in our Workplaces:

  • $17.5 million for Kent & Sussex Family Court facilities
  • $7.5 million for deferred maintenance for state buildings
  • $2.8 million for Carvel State Office Building improvements and renovations

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Bond Rating Agencies Recognize Delaware’s Strong Fiscal Management

Bond refunding saves taxpayers $15 million

WILMINGTON, Del. – Delaware’s proactive fiscal management has been recognized with the announcement of the State’s triple-A bond ratings and an upgrade of the rating for Delaware Transportation Authority (DTA) bonds. The State’s ratings were issued in advance of the refunding of $123 million of Series 2009D Build America Bonds that will save Delaware taxpayers more than $15 million over the next decade. DTA’s ratings were issued as the Authority priced $138 million of new Series 2019 Transportation System Senior Revenue Bonds. Bond ratings reflect an issuer’s financial management policies and practices, ability to make future debt service payments, and economic strength, stability and diversity. Both the State and DTA’s bond issues were priced at interest rates that will result in historically low costs for Delaware taxpayers. 

“Delawareans expect us to responsibly manage taxpayer dollars, and that’s exactly what we’re doing,” said Governor John Carney. “We have an ongoing commitment to ensuring that our fiscal house is in order. These important bond issues and our excellent bond ratings will save us money, and help finance important infrastructure projects like schools and roadway projects all across our state.”

The State’s August refunding refinanced $123 million of outstanding debt through a competitive bid process resulting in a 1.12% all-in borrowing cost — the lowest in modern state history for debt of a similar maturity. The State general fund will realize savings of $1.12 million in the current fiscal year alone. The original bonds financed numerous capital projects including schools, libraries, and other state infrastructure projects.  

“The State’s very successful refinancing reflects a team effort by the Carney Administration, the General Assembly, and our financial and legal advisors,” said Secretary of Finance Rick Geisenberger. “Delaware’s premier bond rating reflects many years of prudent fiscal management and recent efforts to limit operating budget growth, boost reserves during good times, and steer one-time revenues to one-time projects. Our goal continues to be preserving the State’s financial flexibility while ensuring that public borrowing is done responsibly and affordably.”

DTA priced its $138 million of new bonds at a competitive all-in rate of 2.11%. This rate followed the announcement that DTA’s bond rating was upgraded by Moody’s Investor Services from Aa2 to Aa1 while Standard & Poor’s reaffirmed its AA+ rating. Moody’s also upgraded the Authority’s outstanding US 301 Project Revenue Bonds Series 2015 from A1 to Aa3 and its Transportation Infrastructure Finance and Innovation Act (TIFIA) Series 2015 Bonds from A2 to Aa3. The Delaware Department of Transportation’s steady reduction in its overall debt combined with continued positive trends in toll, DMV and motor fuel revenues helps lower the cost of capital and frees up funding to further maintain and improve transportation infrastructure throughout Delaware.    

“We are very pleased with the rating services’ upgrade, and having a strong rating enables the Department to get the most out of every taxpayer dollar,” said Secretary of Transportation Jennifer Cohan. “DelDOT is excited to continue delivering on Delaware’s largest Capital Transportation Program in its history.”

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ICYMI – Governor Carney’s Op-Ed: We’re Making Progress

WILMINGTON, Del. – Governor John Carney published an op-ed in The News Journal about progress made in Delaware to strengthen our economy, improve Delaware’s schools, protect our environment, and responsibly manage taxpayer dollars.

The following is an excerpt from Governor Carney’s op-ed:

“Over the past three years, we have worked hard to connect with Delawareans to get their ideas on how to make Delaware an even better place to live, work, and raise a family. We’ve held more than 50 town hall meetings, small business roundtables, and other public discussions. Time and again, we’ve heard that Delawareans expect us to manage their taxpayer dollars responsibly. Every Delaware family has to worry about their own budget — how they will make important investments while saving for the future. The state should do the same. I’m proud to say that the budget I signed on June 25 meets that test. As part of the state’s 2020 budget, we set aside $125 million in reserves to guard against budget cuts and tax increases the next time we face an economic downturn. That’s in addition to the $250 million Rainy Day fund.

We’re also continuing to make investments where we can make a real difference. We’re funding a six-year, $3.2 billion transportation infrastructure program to fix roads and bridges, and create good-paying jobs, up and down our state. And we’re directing more than $100 million to our highest-needs schools because I’m optimistic that we can help more Delaware children succeed in the classroom. This is hard work that requires a long-term commitment. But we are moving in the right direction.”


Read the full op-ed: We’re making progress

Strengthening our economy.

Improving schools for all Delaware children.

Preserving Delaware’s unique natural heritage.

Responsibly managing taxpayer dollars.

Since taking office as your governor in January 2017, these have been my top priorities. And it’s clear that we’re making real progress.

More Delaware students are graduating from high school. Our unemployment rate is at its lowest level in 30 years. We’re preserving record amounts of open space statewide.

And Delaware is on sound financial footing just two years after climbing out of a $400 million budget deficit.

Our progress is thanks in large part to Delawareans speaking up, and having their voices heard in Legislative Hall and in communities across our state.

Over the past three years, we have worked hard to connect with Delawareans to get their ideas on how to make Delaware an even better place to live, work, and raise a family. We’ve held more than 50 town hall meetings, small business roundtables, and other public discussions.

Time and again, we’ve heard that Delawareans expect us to manage their taxpayer dollars responsibly. Every Delaware family has to worry about their own budget — how they will make important investments while saving for the future. The state should do the same.

I’m proud to say that the budget I signed on June 25 meets that test. As part of the state’s 2020 budget, we set aside $125 million in reserves to guard against budget cuts and tax increases the next time we face an economic downturn. That’s in addition to the $250 million Rainy Day fund.

We’re also continuing to make investments where we can make a real difference.

We’re funding a six-year, $3.2 billion transportation infrastructure program to fix roads and bridges, and create good-paying jobs, up and down our state. And we’re directing more than $100 million to our highest-needs schools because I’m optimistic that we can help more Delaware children succeed in the classroom.

This is hard work that requires a long-term commitment. But we are moving in the right direction.

Working with members of the General Assembly this year, we created the Opportunity Funding initiative to provide more support for the Delaware students who need our help the most — children living in poverty, and children from families where English is not the primary language.

The initiative sets aside $75 million over three years for low-income students and English learners, as well as additional mental health and reading supports. Our goals are simple: to help more Delaware children read proficiently by third grade, do math on grade level by middle school, and graduate high school ready for college or a good-paying career.

It is in every Delawarean’s best interest to make sure all Delaware children have an opportunity to succeed, and contribute positively to the success of our state. We believe the Opportunity Funding initiative will help us deliver on that promise.

We’re also making significant investments in Delaware’s infrastructure and our economy.

Early on July 1, I signed an $863 million capital budget — our largest infrastructure plan ever — that will help us build schools, preserve open space, fund new affordable housing, rebuild drinking water infrastructure, and support economic development projects at Delaware’s colleges and universities.

These are fundamental investments that will create good-paying jobs, and benefit every Delaware family.

Working with members of a new, more diverse General Assembly, we made progress on a host of other issues, as well.

We passed an Equal Rights Amendment to Delaware’s Constitution, and reforms that will make our criminal justice system fairer for all Delawareans. We passed legislation that will protect health insurance coverage for Delawareans with pre-existing conditions.

We passed early voting legislation that will make it easier for more Delawareans to cast a ballot and participate in our democratic process.

With the help of student activists, we raised the smoking age to 21 to prevent more young Delawareans from smoking, to save lives, and save health care costs. And we banned single-use plastic bags to get rid of litter in Delaware communities, to protect our environment, and protect Delaware wildlife.

This is real progress toward our shared objectives that will make Delaware stronger than ever before. Our future as a state is bright. With your help, I look forward to continuing to work together for Delaware families of today, and for future generations.

Learn more about the 2019 legislative session at de.gov/recap.


Governor Carney Signs $4.4 Billion Fiscal Year 2020 Budget

Budget invests in education, limits budget growth, and bolsters reserves

DOVER, Del. – Governor John Carney on Tuesday signed a $4.4 billion Fiscal Year 2020 budget plan that limits operating budget growth to 4.2 percent, invests in education, and gives state employees a raise, while setting aside more than $100 million in projected reserves.

The budget signed by Governor Carney will fund a $100 million, three-year plan to invest in Delaware’s most vulnerable students, and highest-needs schools. Governor Carney’s Opportunity Funding initiative will provide additional, targeted resources for low-income students and English learners, while setting aside additional funding for mental health and literacy supports.

Read full details on Fiscal Year 2020 investments below.

“This is a responsible budget that focuses on Delaware’s future, with important investments in education, in our state employees, and in health care,” said Governor Carney. “We are making historic investments in the students who need our help the most, funding well-deserved raises for our state employees and educators, and fully funding important services for Delawareans and Delaware families who rely on them every day. Importantly, we also set aside additional reserves, to protect Delaware taxpayers from future budget cuts. I want to thank members of the General Assembly, and specifically the members of the Joint Finance Committee, for their work on this budget plan, and their continued partnership on behalf of the people of Delaware.”

Governor Carney introduced his recommended budget in January, and members of the General Assembly approved the budget this week. Members of the Delaware Senate voted to approve the Fiscal Year 2020 plan on Tuesday afternoon. The Delaware House of Representatives approved the budget on June 20.

“We work hard to make sure that the First State’s budget matches the values that define our state and the mission our constituents send us here to accomplish,” said Senate President Pro Tempore David McBride. “Ten years out from the worst of the Great Recession, I’m proud to report that the General Assembly continues to maintain a ledger that spends wisely, collects more revenue in an equitable way, saves for the future, and prepares Delaware for a bright future of fiscal health.”

“This budget is the result of months of hard work from the members of the Joint Finance Committee, staff and the countless advocates who come to Legislative Hall to make their case for many worthwhile programs,” said Representative Quinn Johnson, who chairs the budget-writing Joint Finance Committee. “Delaware’s operating budget touches nearly every resident across the state, and we are proud to have put together a spending plan that maintains our core state services and even increases funding to many of these programs. We’ve added funding for providers that care for our state’s most vulnerable populations and have pledged to continue work on improving funding in more consistent and sustainable levels. We have an obligation to try to help our residents whenever possible, and I think we have done that while being fiscally responsible.”

 

Fiscal Year 2020 Budget Highlights:

  • General Fund Operating budget totals $4.4 billion, limiting growth to 4.2%
  • Sets aside over $100 million in reserves (after projected cash to bond bill and grant in aid)
  • Appropriates $62 million toward one-time items in a separate supplemental appropriation bill
  • Funds “door openers” such as:
    • $19.5 million for K-12 enrollment growth
    • $14.6 million for salary steps (Education, DSP, DTCC, agency)
    • $9.4 million for pupil transportation
    • $9.8 million for Medicaid growth
    • $2.2 million for debt service
    • $1.3 million for elections machine maintenance
    • $1.1 million for inmate medical/pharmacy inflation 

 

IMPROVING OUR SCHOOLS

Investing $100 million in High-Needs Schools

  • Opportunity Funding: $75 million over three years for:
    • $20 million/year in weighted funding for low-income students and English learners (EL) across all grade levels
    • $5.0 million/year to provide mental health and reading supports for grades K-5
    • $500,000 to evaluate the results of this program and identify best practices
  • Providing Resources for Early Grades – Student Success Block Grant: $26 million over a three year period for the following:
    • $4.5 million/year in support for K-3 Basic Special Education
    • $4.0 million/year to provide an estimated 45 reading teachers targeted to elementary schools with high percentages of students in poverty
    • $350,000/year to establish Wellness Centers in elementary schools

Investing in the Classroom

  • $1 million for yearlong residencies to prepare incoming teachers and improve retention in high-needs schools
  • $850,000 for the DE Literacy Plan providing professional development and micro-credential bonus
  • $560,000 to provide 4 additional middle school math coaches bringing the total funding for this program to $1.6 million

Investing in Educators

  • Funding for annual salary steps for educators, plus a 2% general salary increase
  • $500,000 to expand High Needs Educator Student Loan Forgiveness Program, bringing the total funding for this program to $700,000
  • $347,600 to restore National Board certification premium

Investing in Early Education

  • $3.8 million to continue support for Delaware’s early learning centers
  • $6.7 million to maintain access to quality early learning through Delaware STARS

Investing in the City of Wilmington

  • Continued support of $1.5 million for the Christina School District schools located in the City of Wilmington

Continued Support for Higher Education Institutions

  • $2.2 million for SEED and Inspire program growth and for the expansion of SEED to post-associate’s degree
  • $1.5 million for the Higher Education Land Grant/Workforce Development Matching Fund to match federal land grant appropriations or support academic programs that address critical workforce needs in the State
  • $1.7 million for the University of Delaware to support in-state students and the Cooperative Extension program
  • $538,800 to expand grant opportunities for women athletes and support for the nursing program at Delaware State University
  • $1.1 million for the Delaware Technical Community College RN to BSN program, diesel mechanic program, pathways partnerships, enrollment and financial aid support and phase in of a retention and compensation plan

 

A STRONG AND STABLE STATE WORKFORCE

Investing in State Workers and Educators

  • $1,000 annual raise for state workers
  • Successfully completed negotiations with several collective bargaining units
  • 2% raise for educators and bus drivers statewide, on top of annual step increases

Recruiting and Retaining Quality Employees

  • $150,000 for the First State Quality Improvement Fund
  • $85,000 for recruitment and retention efforts

High Needs Area – Public Safety

  • $1.5 million in additional funding for the second year implementation of the Department of Correction Independent Review recommendations
  • $508,600 and 18.0 FTEs for pending legislation expanding the availability of expungement for selected categories of adult arrests and convictions (SS1 to SB 37)

High Needs Area – Children’s Services

  • $3.3 million to add 34 casework staff and contractual support in the Division of Family Services
  • $5.0 million in a contingency to address department-wide caseload growth

 

A Healthier Delaware

Supporting Those who Serve Delawareans with Disabilities

  • $4.2 million for contractual increases for partners providing services to those with disabilities
  • $3.6 million for attendant care services waiting list

Continued Health Coverage for Children

  • $3.2 million for the Children’s Health Insurance Program (CHIP) due to decreased federal funding

Addressing Prevention, Treatment, Resilience and Recovery of Mental Health, including substance use and co-occurring disorders

  • $2.9 million for a Behavioral Health Consortium Contingency

Providing Basic Services to the Medicaid Population

  • $1.3 million for Medicaid Dental services

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