House Republicans question Governor Meyer’s FY2026 budget protocol

Governor Matt Meyer’s proposed changes to the state’s operating budget has drawn negative reaction from House Republicans.

In a break from traditional practices, Meyer unveiled his “Budget Reset” for Fiscal Year 2026, outlining new spending priorities and revenue-generating measures.

Traditionally, the governor’s office collaborates with the Office of Management and Budget throughout the fall to draft a budget proposal, which is then presented to the General Assembly in January.

The legislature uses this draft to hold hearings and make adjustments before passing a final version in late June. This process is designed to start the new fiscal year on July 1st.

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Meyer has chosen to make significant amendments to the budget originally drafted by his predecessor, Governor John Carney.

Meyer’s proposed budget totals $6.58 billion, a slight increase over the $6.552 billion plan from the Carney administration.

The revised budget marks a 7.4% increase over the current fiscal year, which saw a 9.3% rise over the previous year. Key features of the new proposal include increases in teacher salaries, the expansion of affordable housing, and additional funding for healthcare services.

One of the most significant aspects of the proposal is the introduction of higher income taxes for Delaware’s wealthiest residents.

The governor is pushing for three new tax brackets for individuals earning more than $125,000, $250,000, and $500,000 annually, with each bracket taxed at progressively higher rates.

At the same time, Meyer has promised a personal income tax cut for the vast majority of Delawareans, claiming that 92% of residents would see a reduction in their tax burden under the new plan.

In addition to the income tax hike, the proposal also includes higher taxes on cigarettes and tobacco products. Furthermore, the governor has proposed increases in fees and taxes through the Department of Transportation, which are expected to generate $107 million in new revenue.

While some members of the legislature have expressed support for parts of the governor’s plan, others are raising concerns about its long-term sustainability.

Rep. Danny Short, R-Seaford, a member of the Joint Finance Committee, voiced support for the governor’s plan to increase the state’s commitment to paramedic funding, from 30% to 35%.

“I think it is time for the state to step up and fund more of the paramedic service,” he said.

However, he also questioned how the budget would be paid for, suggesting the state consider cutting the more than 2,200 unfilled state positions, which could save up to $40 million annually.

Rep. Kevin Hensley, R-Odessa, Townsend, Port Penn, also on the JFC, took issue with statements made by Office of Management and Budget Director Brian Maxwell.

During the presentation, Maxwell warned that the state’s Budget Stabilization Fund would be depleted within two years if current spending trends continue, potentially leaving a deficit of nearly $500 million.

Rep. Hensley countered that the fund, which currently holds $469 million, was specifically created to address unforeseen fiscal challenges, and he criticized the administration for being willing to spend it down.

“This projected shortfall is not an unforeseen circumstance,” he stated. “We knew this was coming. I find it disturbing that this administration seems to be fine with spending that fund down and eliminating it.”

As lawmakers prepare to review the proposed budget in the coming weeks, the debate over how to balance the state’s fiscal needs with the long-term health of its financial reserves is expected to intensify.