DOVER, DE- A proposed $6.9 billion budget is now on the table in Delaware, as Governor Matt Meyer presented his Fiscal Year 2027 plan to lawmakers and state leaders Thursday, outlining a budget that balances targeted investments with spending restraint.
The governor highlighted four main priorities for Fiscal Year 2027: investing in children, housing, healthcare, and the workforce, with an emphasis on transparency and efficiency.
The budget allocates $25.3 million for childcare, raises teacher and state employee pay, and provides $8 million for the Literacy Emergency Fund, including $3 million for teacher-driven projects through the updated "Your Voice, Your Choice".
In healthcare, the budget expands access to care, particularly in rural communities, targets Medicaid investments, and supports initiatives to lower costs and increase food access programs.
The budget provides support for affordable housing, homeownership programs, and homelessness prevention, while promoting smart growth and revitalization in existing communities. It also expands rental assistance and maintains funding for the Housing Development Fund.
Sen. Trey Paradee, D-Dover, said the governor's priorities align with those of lawmakers and Delawareans.
"I think the governor's priorities are very much in line with the Joint Finance Committee. I think they're very much in line with everyday Delawareans. I think the focus on education, housing, and workforce is very much in line with what Delawareans are concerned about."
Even with a tough economic year ahead, Paradee said the budget could help get the state back on track.
"I was particularly happy to see some, some good surgical cuts in the budget. We haven't gotten all the details on that, so I look forward to further discussions with that."
In Fiscal Year 2024, spending growth outpaced revenue by more than 9 percent. The proposed FY 2027 budget keeps operating growth below 5 percent and reduces Delaware's structural deficit by more than 70 percent compared to FY 2026 projections.
The plan also maintains a Rainy Day Fund of $366.5 million and a Budget Stabilization Fund of $469.3 million, providing a buffer against economic uncertainty.
Rep. Tim Dukes, R, said he is optimistic about the budget and encouraged by its fiscal restraint.
"We're more pleased with this budget than we have been in a long time. When you go from 10 percent growth down to 4.9, that's commendable."
Dukes also praised the governor's focus on early childhood education amid the ongoing literacy crisis.
"The first thing was fifty million for early child care, which is very important because what you do in the primary years of a child's life before they get to kindergarten is crucial. It really sets a foundation. So it'll be interesting to see that 50 million — how that's divided out."
During the presentation, Gov. Meyer also highlighted the progress of Delaware's corporate franchise from January through October 2025.
"Our corporate franchise is actually stronger than ever. We had about 280,000 formations in the first ten months of 2025, a 14% increase from 2024. Today, as I stand before you, there are more entities registered and incorporated in Delaware than at any other time in history," Meyer said.
Dukes called the growth encouraging but noted some questions remain.
"That's encouraging. What we don't know is the breakdown. We appreciate there's a 14% increase. How many of those are tier one major corporations? So that's some things that we'll find out."
The governor also emphasized workforce investments, including pay increases for Delaware public educators, salary increases for state employees, and expanded apprenticeship opportunities across the state.
Paradee said these steps are important to maintain a strong workforce.
"There are some increases for state employees in general. You know, so it's important — we have to take care of our workforce."
Other highlights of the FY 2027 budget include establishing a film tax credit to support Delaware's creative economy, hardship waivers for court fines and fees, and initiatives to drive economic growth in downtown areas.
While lawmakers still need to review the budget line by line, both sides of the aisle expressed optimism, calling it a strong starting point.
"I really look forward to working with the governor and his people. I think we're at a good spot," Paradee said.
"I appreciated his presentation, and my caucus looks forward to working with him," Dukes said.
The budget is now out of the governor's hands and will move to the Joint Finance Committee, which is set to begin its review in February. Lawmakers will debate and shape the proposal ahead of the June 30 deadline to pass a final budget.