The council in charge of Delaware’s budget projections expects the state will bring in $200 million more this fiscal year than the last, but spending will reach an all-time high.
The Delaware Economic and Financial Advisory Council (DEFAC) is projecting the state’s revenue will grow by 3.2% this fiscal year, but is expecting to spend 12% more.
Delaware is projected to spend almost $7 billion in fiscal year 2025 after spending $6.2 billion in fiscal year 2024.
That increase can be attributed in part to ongoing capital projects, explains the Office of Management and Budget's Financial Management Services Deputy Director Cali Engelsiepen.
In fact, the state is projected to see a decrease in spending next fiscal year, which is almost unheard of.
“The reason why we're seeing it go down right now is because of the cash to bond projects. So we're seeing a lot of spend in fiscal year 2025 for those projects that we mentioned earlier, the courthouses, the helicopters," Engelsiepen said.
She's referring to the construction of two Family Courts in Kent and Sussex Counties, as well as a new state-of-the-art facility and helicopters for Delaware State Police’s Troop 6.
DEFAC is expecting the state to spend around $150 million less next fiscal year with the completion of these projects.
While the state is expected to spend $113 million more on capital projects than fiscal year 2024, it’s also spending $152 million more on health care benefits, $78 million more on Medicaid and $91 million more on pension benefits.
DEFAC is projecting a 2.7% revenue increase next fiscal year, dwindling to 1.2% for fiscal year 27.
The state ended fiscal year 24 bringing in $6.3 billion, only a .9% increase from the year prior.