DOVER, Del. — Republican lawmakers are raising fiscal concerns following Democratic Gov. Matt Meyer’s $6.58 billion proposed budget for Fiscal Year 2026, which includes broad income tax cuts and increased funding for healthcare, education, and housing.
While Meyer touted the plan as a reflection of “core Delaware values,” Republican leaders say the budget relies too heavily on one-time funds and lacks a long-term strategy to control spending.
“I think it is time for the state to step up and fund more of the paramedic service,” said State Rep. Danny Short, responding to Meyer’s proposal to increase the state’s paramedic cost share from 30% to 35%. “There are some great things in the governor’s proposals, but it is a question of how we pay for it.”
Short, the House Minority Leader, argued that the state should prioritize cost-cutting over new taxes or fees. He pointed to more than 2,200 unfilled state jobs — many of which have been vacant for years — as a potential source of savings.
“We should seriously consider eliminating these open positions,” he said. “I estimate such a move could save the state at least $40 million annually, without impacting current services. We should be looking at efficiencies like this before enacting tax or fee increases.”
Gov. Meyer’s plan would deliver personal income tax cuts to 92% of Delawareans while adding higher tax brackets for top earners. It also boosts spending on early literacy, mental health, Medicaid, affordable housing, and nutrition programs.
But Rep. Kevin Hensley warned that the budget’s growth trajectory is unsustainable, referencing concerns raised by Budget Director Brian Maxwell that the state could face a nearly $500 million deficit in two years if current trends continue.
“At present, there is more than $469 million in the Budget Stabilization Fund,” Hensley said. “This fund was created to deal with unforeseen circumstances. This projected shortfall was not an unforeseen circumstance. We knew this was coming. I find it disturbing that this administration seems to be fine with spending that fund down and eliminating it.”
Despite the administration’s assurances that investments in services and infrastructure will improve long-term outcomes, Republicans are urging a greater focus on structural reform and fiscal discipline.