The Delaware Department of State (DOS) is requesting a nearly $3.3 million budget increase for FY 26. The bulk of that funding will cover personnel contingencies, the annualization of department positions and technology improvements, but DOS is also requesting $338,000 more for library operations.
The funding is earmarked specifically for new facilities opening in Harrington, Selbyville, Newark and Duck Creek, but State Sen. Darius Brown (D-Wilmington) raised concerns that the requested amount is not enough to cover the increasing operating costs other libraries face.
In 2022, Gov. John Carney announced $40 million in American Rescue Plan Act funding for new construction and renovations in nine libraries across the state, along with $26.8 million in state funding to match the federal funding for five new libraries.
Library stakeholders have argued following these capital investments, more staffing and funding is needing to run these new and improved spaces.
Chief Deputy Secretary of State Kristopher Knight says the library standards budget has increased by around $2 million since 2020, but he agrees more could be done.
“You're not wrong, and the libraries need to continue to be funded, but finding the measure for funding as these libraries' increase is just— it's an art, not a science, I think," Knight told Brown.
Knight believes some sort of metric needs to be developed to evaluate how much a library’s operating cost should be increased based on how much their square footage or services have increased over the past few years.
Delaware Council on Libraries member Candace Vessella spoke during public comment and requested the Joint Finance Committee (JFC) consider upping the total libraries operating budget by over $2 million, which would bring the library standards budget to close to $8.5 million.
DOS's JFC hearing also gave legislators the opportunity ask the new Secretary of State about her priorities.
Recently confirmed Secretary Charuni Patibanda-Sanchez has quickly made it clear that protecting franchise revenue is currently her most important consideration.
Franchise revenue comes from the tax businesses pay to incorporate in Delaware, which most are willing to pay due to the First State’s business-friendly corporate laws and specialized Court of Chancery.
But Elon Musk’s decision to reincorporate SpaceX and Tesla in Texas after the Court of Chancery rejected his $55 billion Tesla pay package, is fueling concerns other companies may leave Delaware.
“The best way to deliver the best customer service is to ask anyone who is concerned, worried, thinking— give us your feedback, tell us what you think we can do better as a state, as a division of corporations, and we will be able to respond. And that is something that the governor is committed to — I am as well," Patibanda-Sanchez told the JFC.
She says while she can’t share any specifics yet, it “won’t be much longer” until the Meyer administration offers "news and some changes" to the franchise.
Incorporation revenue is the second largest funding source for the state behind personal income tax, but the Department of Finance is expecting corporate income tax to decrease by 10% for fiscal year 26.
JFC members also asked Patibanda-Sanchez about her plans for the Edgemoor Port expansion project, which the Meyer administration has been criticized for being vague about by other legislators.
Combined with the existing Port of Wilmington, a new container terminal on the north side of the Christiana River is expected to generate 11,500 jobs and $76.2 million in tax revenues for the state.
"I am eager to get that process going. I have been in touch with my fellow secretaries who are also appointed to the [Diamond State Port Corporation] Board, as well as legal counsel for the Board, and we are all getting up to speed on the permit challenges that are existing right now," she said.
Patibanda-Sanchez is referring to an October 2024 ruling from a federal judge that the U.S. Army Corps of Engineers violated the law and did not fully consider the impact of the planned container port, effectively pulling the necessary permits for the project and halting any planned construction.
"The permits are now being corrected, and we have some information that they should be reissued shortly," Patibanda-Sanchez added, later confirming a comment from Brown that the permits could be valid by the Spring.
When asked by Brown if a policy decision about the Edgemoor expansion project has been made, Patibanda-Sanchez responded: "There has been no policy change, I will say. I will however draw your attention to the fragility of the federal funds that were allocated for the port."
She said she is concerned about the federal funding coming through with the bulk of it expected to source from Environmental Protection Agency Clean Ports Program, which could be targeted by President Donald Trump's administration in its planned federal spending cuts.
She says she does not have confirmation that the funding will not come through as of yet and emphasizes Delaware's federal delegation is working tirelessly to ensure its security.
Veteran services were also top of mind for JFC members.
The House Veterans Affairs Committee recently cleared a bill that would create a a new state-level Department of Veterans Affairs led by a cabinet-level secretary.
Currently, DOS houses the Office of Veteran Services and the Commission of Veteran Affairs, but advocates argue creating a state-level department would enable more federal funding to support veteran programs across the state.
The department is expected to cost around $850,000 annually in its initial years, but with looming financial concerns for the state as a whole and the House's announcement it will be stalling all bills with fiscal notes until there is more certainty around federal funding cuts, finding the funds for the department is still up in the air.
When asked about her support for the department, Patibanda-Sanchez said, "We are eager to work with the legislature on that particular bill as it comes through the process, and we will absolutely do whatever is best for our veteran community."
The bill still needs to be released from the House Appropriations Committee, make it through a vote on the House Floor, repeat the same process in the Senate and then be signed by Gov. Meyer before officially becoming law.
DOS is also requesting $250,000 in one-time funding for the celebration of the United States' Semi-Quincentennial Anniversary.
2026 will mark America's 250th anniversary, and the funding will support museums, libraries, non-profit organizations, historic sites, heritage groups, and other such groups in developing programs or other public-facing ventures to commemorate the anniversary.
