DELAWARE -Bipartisan leadership in the Delaware General Assembly introduced legislation Thursday to formally establish the Delaware Economic & Financial Advisory Council in state law, solidifying a body that has guided budget decisions for nearly 50 years.
House Bill 370, sponsored by leaders from all four caucuses, would codify DEFAC, which currently operates under an executive order first signed in 1977 by former Gov. Pete du Pont. The council has been reauthorized by multiple governors since then.
“DEFAC guides our decision-making process almost every day in this building by providing us with the revenue and expenditure forecasts upon which we build everything else,” said House Majority Leader Kerri Evelyn-Harris. “It is long overdue that we enshrine this important council into our state code for future policy makers to rely on.”
DEFAC includes more than 30 members from both public and private sectors, along with key state leaders. Its role is to provide ongoing updates on Delaware’s financial condition, economic trends, and guidance on tax policy and debt management.
Lawmakers rely heavily on DEFAC projections when crafting the state’s operating and capital budgets. In October 2025, the council projected significant revenue losses tied to federal tax code changes, prompting the General Assembly to pass legislation in November to decouple Delaware’s tax code from certain federal provisions. Without that move, the state was expected to lose $222.8 million in fiscal year 2026, $107.4 million in 2027, and $79.9 million in 2028.
“For decades, DEFAC has served a vital function in Delaware, ensuring our budget-writers colored inside the lines and that the state spent less money than it expected to receive,” said State House Republican Leader Tim Dukes. “But until now, DEFAC has lived an ephemeral existence—operating under an executive order any governor could change or revoke. This bill gives it the security it deserves by writing its form and functions into the Delaware Code.”
Supporters say DEFAC’s work has helped Delaware maintain a AAA bond rating from Fitch, Moody’s, and S&P Global Ratings for 25 consecutive years.
“This has the potential to be an important moment of unity and foresight for our State. Codifying DEFAC sends a clear message that the safeguards that have fostered a half-century of economic vibrancy and responsible budgeting are here to stay,” said Senate President Pro Tempore Dave Sokola. “When Democrats and Republicans in the Legislature and the Governor can speak with one voice as to the sanctity of DEFAC and the importance of meaningful oversight of our revenue projections and fiscal management, it signals to rating agencies, our corporate franchise, and most importantly hard-working Delawareans that we are governing and budgeting responsibly, funding state services appropriately, and keeping our tax burden low for our working families.”
If approved, DEFAC would continue meeting regularly throughout the year and provide revenue and expenditure estimates for both the General Fund and Transportation Trust Fund over multiple fiscal years. The council would also be required to submit an annual report by Dec. 31 summarizing its work, forecast accuracy, and fiscal risks.
The bill also restructures the council, setting membership between 25 and 34 people and adding legislative representation, including members selected by the House speaker and Senate president pro tempore.
HB 370 is named the DuPont-Cook Financial Responsibility Act, honoring du Pont and former Sen. Nancy Cook, a key figure in establishing Delaware’s balanced budget practices.
“For decades, DEFAC has helped keep Delaware on solid financial ground by providing reliable, nonpartisan revenue projections. That really goes back to the leadership of Pete du Pont and Nancy Cook, who set the tone for responsible budgeting in our state,” said Senate Minority Leader Gerald Hocker. “Codifying DEFAC just makes sure we protect what’s been working and continue planning for the future with confidence.”
The bill has been assigned to the House Administration Committee.
