GOVERNMENT

Delaware General Assembly passes state budget for fiscal year 2025

By Joseph Edelen
Posted 6/20/24

DOVER—The General Assembly unanimously passed a more than $6.1 billion state budget bill for fiscal year 2025 Thursday, representing a year-over-year growth of roughly 9.3%.

The House of …

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GOVERNMENT

Delaware General Assembly passes state budget for fiscal year 2025

Posted

DOVER—The General Assembly unanimously passed a more than $6.1 billion state budget bill for fiscal year 2025 Thursday, representing a year-over-year growth of roughly 9.3%.

The House of Representatives and Senate also passed an over $168 million supplemental spending budget for one-time expenditures for the upcoming fiscal year, which decreased by nearly 13.5% from the current monetary year.

“We are living in a time period that 25 to 50 years from now, people will look back at the opportunity that we’ve had over the past three or four budget cycles to make investments in this state, particularly on the capital side,” said Sen. Trey Paradee, D-Dover, who chairs the budget-writing Joint Finance Committee.

“What an incredible opportunity, and I think all of us … should really take pride in the investments that we’ve been able to do with roads, schools, bridges, courthouses; you name it.”

As a part of these commitments, the state has set aside $50 million to help fund future raises for educators, as part of the legislature’s goal to bring starting salaries to $60,000 in order to stay competitive and drive teacher recruitment efforts.

The budget bill also includes a 2% increase for all merit employees, and the third straight year of pay raises for state employees.

Building off recommendations from the Delaware Public Education Compensation Committee, the budget also features a 2% raise for teachers and specialists, and varying pay increases for paraprofessionals, custodians, bus drivers and food service workers.

Further, the budget allocates $132 million to cover the state share of employee and retiree health insurance premiums to ensure existing benefits are maintained; $94 million for inflationary costs and increased Medicaid usage; $39 million to accommodate projected public school enrollment growth; $10.3 million for the state’s purchase of care program; $3.5 million for the Early Childhood Assistance Program; and $17 million to provide mental health support in schools.

The one-time supplement bill includes $56 million for the Other Post-Employment Benefits Fund to cover future retiree healthcare costs; $8.9 million for the primary and general elections; $3.5 million for residential and childhood lead prevention and remediation programs; and $250,000 for a middle and high school cell phone pouch pilot program in attempt to curb classroom distractions.

The budget and one-time supplement bills unanimously passed the Senate with no debate.

In the House, the one-time supplement passed unanimously but the budget bill was opposed by three Republican members: Minority Whip Lyndon Yearick, of Magnolia; Rep. Rich Collins, of Millsboro; and Rep. Bryan Shupe, of Milford.

“In two years, the state’s operating spending has increased by more than $1 billion; a 20% increase,” Rep. Yearick said. “I’m challenged to see how we’re going to be able to keep that pace of spending up with an economy that’s struggling to grow, revenues that have now started to slow down.”

Following the bill’s passage in both houses of the General Assembly, Gov. John Carney thanked Joint Finance Committee Chairs Sen. Paradee and Rep. Kim Williams, D-Newport.

“This budget continues our investments in Delaware’s public schools, workforce, and environment, while doing so responsibly and sustainably,” the governor said in a statement.

“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.”

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