Governor Carney on Thursday presented his Fiscal Year 2024 budget request. with a 7.4% spending increase
“This year’s recommended budget shows our priorities clearly with raises for teachers and state employees, major investments in housing and child care to support our families, and responsibly managing taxpayer dollars,” said Carney. “We’ll also provide middle-class tax relief for working Delawareans. We’re continuing to strengthen our economy, invest in public schools, support families and our workforce, and protect our environment. I’d like to thank members of the General Assembly for their partnership and for their consideration of this budget. I look forward to building on our work, together.”
The budget is expected to draw fire from Republican legislators for among other things coming in with a 7.4% increase. At the same time, the number of GOP legislators has dwindled to the point that Democrats now have a supermajority.
The proposed budget would increase the standard deduction on personal income taxes by 75% to $5,700 ($11,400 joint) effective in tax year 2024. Carney also proposed increasing the refundable Earned Income Tax Credit to 7.5% of the federal credit for lower income taxpayers effective in Tax Year 2023.
Carney said the changes would simplify taxes for many residents and provide some relief for those with moderate incomes.
Summary from the governor’s office
- – General Fund Operating budget totals $5.5 billion, growing 7.4% from FY23
- – Sets aside over $18.9 million in reserves (after projected cash to bond bill and grant in aid)
- – Appropriates $324.9 million toward one-time items in a separate supplemental appropriation bill
- – Takes continued steps toward providing compensation and pay equity for state employees
- – Increases teacher pay by 9% and public education employee pay by 3%
- – Increases Opportunity Funding investments by $15 million in our schools for low-income students and English language learners
- – Historic investment of $101.5 million in affordable housing programs and incentives
- – Supports economic development and infrastructure throughout the State
- – Continues investments in clean water, economic development and fulfills our commitments to new school construction
Workforce
- – Additional year of historic pay policy, with a 3% to 9% with lowest wage workers receiving the highest percentage
- – Historic wage increase for teachers, 9% raise for teachers and a 3% raise for public education workers
- – Establishes a $15 minimum wage for merit full-time state employees
- – Invests $194 million in state employee health care and other post-retirement employee benefits
Child care
- – Purchase of Care rate increase to 100% of the 75th percentile of the 2021 Market Rate – $10.3 million
- – Increase of $6.1 million for a total of $12.2 million in Early Childhood Assistance Program (ECAP)
- – Increases Opportunity Funding Investments by $15 million for a total of $53 million
- – $30 million for mental health services for elementary and middle school students
- – Increase of $3 million to the Wilmington Leaning Collaborative for a total of $10 million
Environment
- – $5.1 million for Cover Crop Investments to support climate smart initiatives and improve water quality
- – $2.9 million for lead assessment and remediation
- $18 million for the Clean Water State Revolving Fund
- – $1.7 million for Conservation Cost Share
Housing
- $101.5 in affordable housing investment – the largest in Delaware’s history – including $31.5 million for housing initiatives including Catalyst Fund, Accelerator Fund, Market Pressure Relief Fund, and Preservation Fund
Click here to download Governor Carney’s Fiscal Year 2024 budget presentation.
Watch the budget presentation on Governor Carney’s YouTube page.
