DELAWARE - Gov. John Carney on Thursday unveiled his Fiscal Year 2025 Recommended Budget, proposing a plan that aims to bolster Delaware’s economy, enhance public schools, support families and the workforce, and address environmental concerns.
The $6.07 billion General Fund Operating budget includes substantial investments in various sectors. Carney emphasized the budget's focus on long-term sustainability. "Our recommended budget responsibly invests in public schools, our economy, our workforce, and protecting our environment, ensuring these investments are sustainable in the long run," stated Gov. Carney.
With a Delaware study recommending increasing education funds, the budget commits over $135 million to early childhood education, including $83 million for Purchase of Care and $16 million for the Early Childhood Assistance Program (ECAP). It also increases Opportunity Funding Investments by $10 million, totaling $63 million, focusing on low-income students and English language learners. A notable feature is the move towards a $60,000 starting salary for new teachers over the next four years, reflecting a commitment to competitive compensation for educators. The budget includes a 2% minimum salary increase for all state employees.
For Economic Growth and Infrastructure, the plan allocates $52.5 million for economic development, which includes investments in the Strategic Fund, Graduation Lab Space, Site Readiness, and Transportation Infrastructure Fund. An additional $20 million is earmarked for the National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL) and SABRE.
Gov. Carney’s budget for environmental initiatives proposes significant investments in environmental initiatives, including $7.5 million for electric vehicle infrastructure and clean energy. There’s also a focus on shoreline and waterway resiliency, with a proposed $24.7 million investment. Additionally, $32.8 million is allocated for clean water initiatives, part of a larger $77.4 million plan with federal funding.
Addressing healthcare cost inflation, the budget adds nearly $200 million for this sector, with a focus on Medicaid and insurance plans.
Sen. Dave Lawson (R-Marydel) and Sen. Eric Buckson (R-Dover) serve on the Joint Finance Committee, which is set to begin its budget hearings next Tuesday, January 30th. They issued statements in response to Carney's budget on Thursday, expressing the importance of saving money.
"I am afraid that this continued growth, especially if a more progressive administration assumes office next year, will come back and bite us," Lawson says.
"We now have to look forward and, in doing so, the proposed 8.25% budget growth concerns me," Buckson says. "By most measurements, and based on recent DEFAC projections, the next few fiscal years could be quite lean."
House Republican leadership echoed similar concerns about the growing budget.
The budget must be approved by the Delaware General Assembly before the governor can sign it. The decision is expected to take place on June 30, the last day of the legislative session, just in time for the new fiscal year beginning on July 1.
