Type to search

Government News

Gov. Carney Signs Fiscal Year 2018 Budget Plan

DOVER – Governor John Carney on Sunday night signed a $4.1 billion budget for Fiscal Year 2018, a plan that balances a nearly $400 million budget shortfall through a nearly equal mix of spending reductions and new revenue, while maintaining funding for key public services.
Carney signed the budget in his Legislative Hall office flanked by a bipartisan group of lawmakers. He also signed a $590 million capital spending plan and a $37.2 million grant-in-aid bill.  
 The budget funds a number of key priorities, including:
  • $24.2 million to fully fund new teachers in Delaware’s classrooms to match enrollment growth.
  • $16 million to fund pay increases for correctional officers.
  • $7.8 million to fully fund growth in the Medicaid program for low-income Delawareans, Delawareans with disabilities, and seniors in long-term care.
  • $4.7 million to maintain funding for early childhood education.
  • $2.3 million to authorize new correctional officer positions.
  • $1 million to add funding for substance abuse treatment programs.
 Savings and other reductions include:
  • $11 million reduction to the Educational Sustainment Fund.
  •  $5 million savings by eliminating 200 vacant positions across state agencies.
  • $2 million target savings in employee health costs.
  • $1.6 million reduction by modifying double state share for employee health insurance rates.
Revenue increases include:
  •   $116 million: Corporate franchise tax increases.
  •  $11.6 million: Raise taxes on cigarettes 50 cents per pack, and increase taxes on other tobacco-related products. 
  •  $5.2 million: Raise taxes on beer, wine and spirits, including by one penny per beer. 
  •  $44.7 million: 1 percent increase in the realty transfer tax.
  •  $4.5 million: Across-the-board increases to the filing fees associated with Department of Insurance filings.

Get the free DBT email newsletter  

Follow the people, companies and issues that matter most to business in Delaware.


You Might also Like

Leave a Comment

Your email address will not be published. Required fields are marked *

Limited time offer. New subscribers only.

Flash Sale! Subscribe to Delaware Business Times and save 50%.

Limited time offer. New subscribers only.