DELAWARE - Delaware legislative officials say the state Senate voted to approve a $6.99 billion operating budget for Fiscal Year 2027 on June 18. FY27 begins on July 1, 2026. They say it will invest heavily in competitive salaries and benefits for public sector workers and retirees in the First State. The budget will also direct substantial resources into the state's public schools and prioritize the health and safety of Delaware communities through various initiatives.
To learn more about the specifics of the new budget, you can read about Senate Bill 335 here. Officials say the new budget represents 6.3% growth in the state and includes several major highlights.
Some of those highlights are as follows:
$146.9 million has been added to the budget to provide pay increases to state employees, with all merit employees receiving a 3% raise. Education employees will receive a minimum 3% raise, though teachers, nurses, non-administrator classroom staff and others may receive additional raises as recommended by the Public Education Compensation Commission.
Several million has been added to provide assistance to state retirees, including $72 million in Post Retirement Increase Funding to fully fund an increase for state pensioners. That increase will be 1% for those retired between 2006 and June 2021 and 2% for those retired prior to June 30, 2006.
Officials say the budget accounts for several million in healthcare needs and improvements, including $128.5 million to cover increases in statewide Medicaid service needs.
$26.4 million will be invested in child care policy changes that will support both families and childcare providers in Delaware. Furthermore, officials say the budget will continue Delaware's strong investment in public education. More than $2.5 billion of the budget is being put towards Pre-K through 12th grade education, which encompasses just over 140,000 enrolled students. Higher education institutions will also see funding from the new budget, including $5 million going to operations at Delaware State University.
Officials also highlight the need for improvements to the safety of law enforcement officers and the public, with $2.8 million going to Delaware State Police Body-Worn Camera contract increases and $2.2 million for additional security staffing at transit facilities and DMVs.
There is also a one-time supplemental budget laid out in Senate Bill 336. According to officials, that budget includes a total of $146.2 million in one-time funding for statewide needs such as planning for future public education funding, primary and general elections, the Delaware Early Childhood Care and Education Alliance, SAT reforms, and more.
Efforts were also made by the Joint Finance Committee to reduce waste by taking actions like eliminating long-vacant job positions. Officials say they have maintained a strong balance in the Stabilization Fund should a reserve be needed because of federal funding uncertainty, and they have ensured the Budget Reserve, or Rainy Day Fund, is fully funded in Delaware.
