Governor Carney’s 2024 Financial Plan

RESPONSIBLY INVESTING IN OUR ECONOMY, EDUCATION, AND FAMILIES

BY RICK GEISENBERGER

The State’s fiscal condition is arguably in its best shape in decades—a far cry from the $400 million budget deficit facing Delaware when Governor Carney took office in 2017.

It’s no accident. Since 2018, the Governor and General Assembly have partnered to stabilize State finances; benchmark operating budget growth at economically sustainable levels; create accessible reserves to help weather future downturns; and steer “extraordinary” revenue to one-time expenditures and capital investments.

The Governor’s FY 2024 financial plan continues these efforts with proposed 7.4% operating budget growth—slightly above the advisory benchmark growth rate set by DEFAC. The plan fully funds the Budget Stabilization Fund at $421 million and again sets aside 1% of the budget to strengthen the State retiree health care (OPEB) trust fund. The plan dedicates $665 million of “extraordinary” revenue to job creating, and a $1.3 billion capital budget for school, transportation, and infrastructure projects statewide.

The budget reflects the Administration’s major priorities—attracting and retaining state workers and educators, investing in Delaware’s children, and improving access to affordable housing.

Carney proposes to boost teacher wages by 9% and state worker wages by 3% to 9% with lower wage workers receiving the highest percentages.

The budget targets the needs of at-risk children with $15 million of additional Opportunity Funding to support educational programs for low-income and English learners, $30 million for elementary and middle school mental health services, $3 million to the Wilmington Learning Collaborative, and $16 million for early childhood education and childcare assistance.

Delaware businesses tell us that many employees struggle to find affordable housing. The Governor’s plan invests a historic $101 million to attract matching private investment to redevelop vacant and blighted properties, build new affordable rental units, and maintain existing units through repairs, rehabilitation, and financial restructuring.

The plan invests in Delaware’s environment and cultural assets—$26 million to the Clean Water Trust; $28 million to protect farmland, open space, beaches, and waterways; and $43 million for libraries, historical sites, and park improvements.

The Governor’s plan supports job growth with $60 million for strategic economic development investments and research collaborations plus another $60 million for capital and technology projects at our three major higher education institutions.

The Governor proposes $56 million of tax relief for working families. The State’s standard deduction would increase by 75% to $5,700 ($11,400 for a couple) while the refundable Earned Income Tax Credit (EITC) would rise to 7.5% of the federal credit. The proposal will lift takehome pay, incentivize work, and simplify tax preparation for 370,000 tax filers while dropping up to 20,000 Delawareans from the tax rolls.

As Yogi Berra famously said, “It’s tough to make predictions, especially about the future.” But I will make one here. If we stick to the fiscal principles that have served us well these past six years, Delaware’s long-term economic and fiscal outlook will remain strong for many years to come.

Rick Geisenberger serves as Delaware’s Secretary of Finance.