The Delaware Economic and Financial Advisory Council offers its initial look at the state’s financial health for the 2025 budget cycle.
DEFAC sees enough positive signs to bump up its revenue estimates for the current fiscal year and FY 2025 from where they stood last summer – but warns revenue growth remains slow.
It’s 2024 revenue estimate rose just over $125 million, about a 2% increase from its last meeting in June. The revenue forecast for 2025 is up nearly $70 million, a little more than 1% increase.
In both cases, the strength of anticipated corporate franchise tax and personal income tax revenue helped boost the projection.
The estimate for the current fiscal year also benefited from higher projected corporate income tax revenue – and a bump from unclaimed property.
The 2025 revenue estimate also includes jumps in interest and dividends and lottery dollars.
The changes leave the opening spending limit for 2025 at just over $6.4 billion.
The state’s Office of Budget and Management holds its initial budget hearings next month.
DEFAC’s next revenue forecast comes in December. Those figures are the ones Gov. Carney will use to craft his 2025 budget proposal.
