Delaware’s budget-writing committee commits to another round of state employee and teacher salary raises against Republicans’ wishes.
Ahead of the Joint Finance Committee’s (JFC) two weeks of markup, where members craft the final version of the state budget to send to the full General Assembly, House Republicans suggested their own cost-saving measures.
Their recommendations include cutting targeted state job vacancies, reducing the size of the budget increase by 1% and delaying the completion goal of raising the starting public school teacher salary to $60,000 by one year.
These calls come amid a dire financial forecast for the state — Gov. Matt Meyer's recommended budget proposes a 7.4% increase over the current fiscal year, while the state's revenue is only expected to grow by 1.9%.
Although the state is expected to be able to foot the $7 billion bill for fiscal year 26, without significant budget cuts or revenue increases, the state could drain its budget reserves by FY28 and still be in a $480.5 million deficit.
Raising the educator base salary in the First State is a recently adopted recruitment and retention tactic with plans for full implementation by 2027.
House Republicans proposed lengthening the salary phase-in by one year, which they argue would save the state $30 million in its upcoming fiscal year 26 budget.
Despite this call, JFC Vice Chair and State Sen. Trey Paradee (D-Dover) made a motion to adopt the salary increase, and all members present, including House and Senate Republicans, approved it.
Members also approved a 2% salary increase for all state employees, as well as other public school personnel like custodial and food service workers.
During committee meetings and throughout the legislative session, JFC member and State Sen. Eric Buckson (R-South Dover) has repeatedly noted he may support bills with fiscal notes and vote to approve agency budgets but that his support in the moment doesn't necessarily correlate with support for the entire budget when it hits the Senate floor.
JFC also voted to approve the inclusion of a $5.8 million fee increase package in the Delaware Department of Natural Resources and Environmental Control's (DNREC) operating budget.
The majority of DNREC permit and license fees have not been updated since 1991, and 76 percent of the department's operating costs come from assessment fees, federal funds and other revenues, while only 24 percent comes from the state's General Fund.
This is not the first time DNREC has worked with a legislator to file such a bill (House Bill 175), but some members of the Joint Finance Committee believe it’s time to finally approve the hikes.
"I think it's important to point out, if it's not the users who use the service — if they're not paying for the service, then it really falls on taxpayers to cover that. And so there is a fairness issue involved in getting House Bill 175 passed because taxpayers should not have to be subsidizing these services for the users who actually use them," Sen. Paradee said.
Office of Management and Budget Director Brian Maxwell says DNREC has been holding open positions vacant due to lack of funding and there could be consequences if the increases are not approved.
“They would have to continue to hold those positions vacant, and then I imagine there would be an ask from the secretary for assistance from the General Fund to be able to fund their operations," Maxwell said.
But Republican lawmakers are expressing concern over the size of the hikes, as well as an additional bill that has not yet been publicly filed that would raise the Delaware Department of Transportation's revenues, largely through toll increases.
JFC member and State Rep. Charles Postles (R-Milford) called for a significant downsizing of the two bills via a statement from House Republicans, arguing the increases should have been phased in over the past several years.
“It took a long time for them to reach this point,” Rep. Postles said. “They could have addressed this incrementally over the last five or more years when we were flush with cash. Now, I can’t in good conscience call for General Fund spending cuts on one hand while at the same time giving a green light to hikes that will cost citizens and small businesses millions of additional dollars annually.”
Despite his opposition, Rep. Postles and his Republican colleagues present voted to include the fee hikes in DNREC's operating budget.
House Bill 175 will still need to be approved by the General Assembly and receive Gov. Meyer's signature before being implemented.
JFC is scheduled to continue meeting through June 5.
Following the conclusion of markup, the General Assembly will have three weeks to review and pass any remaining legislation, including the state's fiscal year 26 budget.
