The Delaware Department of State (DOS) is requesting over $55 million for capital improvement projects throughout the state, but lawmakers worry it may not be enough.
As Delaware continues to prepare for budget challenges with spending increases that far outpace revenue growth and federal funding uncertainty, the Joint Bond Committee is weighing capital budget requests from state agencies.
DOS overseas 20 separate divisions and is responsible for doling out a variety of funds for economic development projects across the state, including street paving, veteran services and business growth.
These are just a few of the programs DOS is recommending not to fund to their full requested amounts for fiscal year 26.
Veteran affairs has been top of mind for state officials as the legislature looks to create a 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.
Gov. Matt Meyer's FY26 Recommended Budget does not include the estimated $850,000 needed to fund the department, but a spokesperson for the administration says the governor's office believes it can potentially find a way to fund the department without utilizing more taxpayer dollars.
DOS also oversees the Delaware Veterans Home, which the department is not recommending any capital improvement funding for.
“We have roughly about 70 vets that live in that home. We know that the buildout could be much more to service people that need a place to live, especially those that served our country. Why do we not see anything in our budget?” State Sen. Nicole Poore (D-South New Castle) asked Secretary of State Charuni Patibanda-Sanchez during the department's bond hearing.
Sen. Poore is referring to the $2.9 million requested by the Veterans Home for minor capital improvements, a new roof for the facility and the construction of a courtyard.
Sec. Patibanda-Sanchez says ultimately "very difficult decisions had to be made," but notes the roof does not have any present defects and the department would make emergency repairs if needed.
She adds there is currently ongoing construction in one of the home's wings, and she hopes once that construction is completed, the home could use existing space for short-term stays.
Lack of funding for the Delaware Strategic Fund also sparked concern from Joint Bond Committee Chair Jack Walsh (D-Stanton). The fund supports business retention and expansion through grants and low-interest loans.
DOS is recommending $5 million for the fund, despite $12.5 million being requested. Former Gov. John Carney recommended $20 million for the program in his fiscal year 26 recommended budget.
“We believe that the $5 million will go a long way. There's an existing $16.5 million in the [Strategic] Fund as it stands today, so this will bring the total up to $21.5 million, and we believe even with doubling the EDGE Grants to $3 million that we'll still have plenty of flexibility and leeway in attracting businesses through the Delaware Prosperity Partnership," Sec. Patibanda-Sanchez said.
Encouraging Development, Growth & Expansion [EDGE] Grants provide financial assistance specifically to small businesses throughout the state, and the Delaware Prosperity Partnership leads Delaware’s economic development efforts to attract, grow and retain businesses in the First State.
A few lawmakers also expressed disappointment in the Subdivision Street Pavement Management Fund only being allocated $10 million — Sen. Walsh says the goal was to bump the program up to $30 million next fiscal year to pave roads across the state identified as in "very poor" or "poor" condition.
DOS is recommending $1.2 million for library capital improvements across the state. While lawmakers appeared largeely supportive of this request, State Sen. Marie Pinkney (D-Bear/New Castle) and State Rep. Kendra Johnson (D-Bear) were hesitant about $150,000 of that allocation heading toward a feasibility study for a Glasgow Library.
"We have outgrown the Bear Library. We are bursting at the seams, and we require some upgrades and updates to our space," Rep. Johnson told Sec. Patibanda-Sanchez. "I don't want to see this library get left behind while others are built, and we're not putting the attention on keeping this up to date and ensuring that this community hub continues to meet the needs of the community."
Concerns were also raised over the lack of funding for the City of Wilmington Land Bank, which aids in affordable housing efforts, and the Delaware Sports Tourism Capital Investment Fund, which provides financial support to new and existing sports facilities across the state, as well as a reduction in funding for the Downtown Dover Partnership.
The Joint Bond Committee has the ability to recommend full or partial funding for any of these projects as it marks up the FY26 Bond Bill, but the final say will ultimately be left to the General Assembly and Gov. Matt Meyer.
