Gov. Matt Meyer’s administration looks to decrease cash flow to statewide capital projects after years of high infrastructure spending.
Delaware received over $1 billion from former President Joe Biden’s COVID-19 stimulus package known as the American Rescue Plan Act (ARPA), and the state opted to spend the majority of those funds on one-time infrastructure projects.
ARPA funding came to the First State through two different programs, the State and Local Relief Fund (SLRF) and the Capital Projects Fund. While SLRF funds were not required to be spent on capital projects, former Gov. John Carney chose to spend close to 75% of it on one-time infrastructure expenditures.
$35.4 million in cash to the Bond Bill — the legislation that allocates money to state capital projects — for fiscal year 21 jumped to $692 million for FY22 and hit a record-high at $855.5 million in FY23.
That number has since been on a steady decline, and with the potential for budget deficits looming, Delaware Office of Management and Budget Director Brian Maxwell says reducing the Bond Bill’s cash flow was necessary.
For the upcoming fiscal year, the Meyer administration is recommending $291 million — a 32% decrease from this fiscal year — for the Bond Bill.
Maxwell explains educational improvements are a priority with this funding.
“Improving schools for Delaware students — there's $171.5 million for school construction and renovation, $42 million in higher education campus improvements represents a $14 million to each of the higher education institutions," Maxwell told the Joint Bond Committee.
The administration is also recommending $30 million be allocated to school building deferred maintenance and $9.1 million for school safety and security.
Other big ticket items include $84.4 million for state agency minor capital improvements, deferred maintenance and facility renovation, $50 million for the Legislative Hall expansion project and $41.3 million for statewide correction facility and safety improvements.
With GO Bond revenues and reprogramming allocations, along with revenues from the Delaware Department of Transportation (DelDOT), the state is expected to spend a total of $938 million on capital improvements next fiscal year.
The state is also wrapping up large-scale capital projects in the coming years — another contributing factor to declining capital spending.
This includes the completion of two new family courthouses.
“Sussex County Family Courthouse project is on schedule for completion in the fall of 2025. The new 110,000 square-foot facility includes eight courtrooms, expanded office space and has been designed with future growth in mind," Maxwell said.
That’s in addition to the $145 million Kent County Family Courthouse, which is expected to be completed in the spring of 2026.
The new Troop 6 in Wilmington should be completed in the coming months while the new Troop 4 in Georgetown is anticipated to be finished by late 2026 or early 2027.
