peel back effect

Delaware governor signs $5.1 billion budget for 2023

By Matt McDonald
Posted 6/28/22

Gov. John Carney signed a $5.1 billion operating budget for fiscal year 2023 Tuesday, providing a significant boost to the salaries of many state workers and fully funding a law to up the pay rate of …

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Delaware governor signs $5.1 billion budget for 2023

Posted

DOVER — Gov. John Carney signed a $5.1 billion operating budget for fiscal year 2023 Tuesday, providing a significant boost to the salaries of many state workers, especially those making less than the median wage.

The 2023 budget represents a 6.8% increase over the current one, reflecting an expected 7.3% bump in state revenue by the year’s end. Some of the extra money will be socked away in the state’s rainy day and budget stabilization funds ahead of a year that could prove financially tumultuous.

Gov. Carney thanked lawmakers on the Joint Finance Committee, which is responsible for writing the budget, for ensuring that the financial plan is “responsible and forward-looking.”

“It would have been really easy to do things, frankly, that would have been irresponsible for future. And we didn’t do that,” Gov. Carney said.

The money that has been set aside will help the state ride out a dip in revenue next year as is expected, the governor added.

The budget includes a 9% increase for all merit state employees making close to the minimum wage. Workers on the higher end of the state pay scale will see a 2% increase. All state employees will receive a one-time $500 bonus. Those pay increases will help Delaware to recruit and retain employees in a challenging hiring environment, the governor said.

Former state employees will also benefit from the budget. State workers who retired between June 30, 1992 and June 30, 2017 will see a 3% increase in their pension benefits, while those who retired after the latter date will see a 2% increase. The growth in pension benefits will cost the state a combined $104 million.

The spending plan also increases funding for education programs, including $1 million for grades K through 12. Additional money has also been slotted for the University of Delaware, Delaware State University and Delaware Technical Community College.

Other notable budget items include the McNesby Act, which ups the pay rate for direct support professionals who aid people with disabilities, which is fully funded in the budget.

The spending plan also includes just under $1 million in additional funding for Planned Parenthood of Delaware.

The governor also signed a $379 million supplemental appropriation, which includes $20.8 million to implement the paid family and medical leave insurance program created by the Healthy Delaware Families Act.

“We were able to get a lot done while still staying responsible,” Sen. Trey Paradee, D-Dover, chairman of the Joint Finance Committee.

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