DOVER — Gov. Matt Meyer made job creation through innovation the focus of his inaugural State of the State address on Thursday, but he also warned that legislators needed to stand united against the tumultuous times ahead.
The gubernatorial address to state senators and representatives was held at the statehouse, with Meyer’s new cabinet and distinguished guests like teachers, county dignitaries and mayors of growing towns in attendance.
This was Meyer’s third speech since he was sworn in, and while he again asked legislators to be bold in turning aspirational goals into reality, he also took a harder stance against the federal government.
“For years, we’ve seen a federal government that, for all its flaws, provided stability and support to states and communities. That stability has now been shaken. That support is unraveling, and we are already feeling the consequences. Families are still facing increased costs at the grocery store, while their retirement savings disappear,” he said.
On his inauguration day, Meyer offered an open hand to President Donald Trump for a partnership. Three months later, he made that same offer to the legislators in the room to navigate the challenges ahead. But he also warned those who supported the Trump administration that they “could not have it both ways.”
“You can’t give more fuel to the arsonist with one hand, and then with the other hand point your finger disapprovingly and say we aren’t putting the fires out fast enough,” Meyer said. “We have to be able to work together…Hear me now, Delaware – we will not run from a fight and we will never let someone else define who we are, who we love, or what we, as a state, value.”
“For we are indeed a state of neighbors. If our neighbors are under threat, we’re all under threat,” the governor added.
In terms of economic development, Meyer said that Delawareans deserved to prosper in an innovative economy and plans to invest in small businesses and growing industries. He pointed to Delaware’s hallmark industries in chemistry, life sciences, financial technology and agriculture as key examples.
He thanked the Delaware Prosperity Partnership for their efforts but said that focus could not be on recruiting companies alone. In the past two months, the Council on Development Finance approved two major projects on a possible Merck site and an Aldi high-tech warehouse – both were approved under former Gov. John Carney and Meyer allowed them to proceed.
Meyer proposes doubling the Encouraging, Development, Growth and Expansion (EDGE) program for startups and small businesses to $3 million but maintains $21.5 million in the Strategic Fund.
The governor hopes to focus on the “untapped gem” of the Port of Wilmington, and his administration plans to get the expansion done and create thousands of union jobs. Confirmation hearings for his nominees for the Diamond State Port Corporation start next week before the state Senate, after the Delaware Supreme Court ruled that Meyer could withdraw the previous administration’s nominees.
In later conversations with reporters, Meyer said that he would let the board decide on the direction of expansion — and whether that would include the Edgemoor port.
After the address, Senate Pro Tem David Sokola (D-Newark) said he looks forward to the future of the discussions as well as the confirmation hearings.
“I think that the port’s an asset we really need to be serious about moving forward. We obviously had a curveball thrown at us when the permit was put on hold. But once we get that and start construction, hopefully we’ll have a team with a kind of consistent vision in place,” Sokola said.
Much of Meyer’s speech focused on creating a climate where startups could blossom, and small businesses can thrive. Not only does that include the state’s colleges, but all schools in the state. He recognized the Public Education Compensation Committee, as well as his budget’s plan to invest $75 million to raise educator salaries.
The governor also wanted to replicate a successful program he launched as New Castle County executive, where teachers were given a portion of the education budget to decide how to use it best. One success he pointed to was William Lewis Elementary School teacher Maddie Gellar, who completed fundraising for decodable books to teach students phonics.
Boldly, he also asked legislators in the room to complete a holistic funding reform framework before June 30.
“We cannot continue to simply identify problems. It’s time to act. It’s time to innovate,” Meyer said. “It’s time to choose progress over process, and to deliver, not delay.”
The governor also reaffirmed his goal to make headway on affordable housing, as his budget adds $6 million to the state’s rental assistance program as well as $19 million for the housing development fund.
While he admitted not being a fan of task forces, he lauded a recent affordable housing study that created a roadmap for solutions. He also announced he would be reactivating the Delaware Interagency Council on Homelessness to find comprehensive support for those in need.
While Democrats told reporters after the address that the speech had important aspirations, the challenges will be very acute this year. A recent report from the state auditor affirmed that the state receives $4.2 million in federal funding, most of it for education and in Medicaid.
Meyer also said that he would be in favor of using the budget stabilization fund in the event of an economic downturn. His budget proposal also includes $21.9 as a federal contingency fund – just in case Delaware needs to offset severe reductions.
“We’re uncertain about how uncertain it is because of the volatility just seen in the last week,” Sokola said, referencing the stock market crash and JP Morgan & Chase Co.’s prediction of a strong likelihood due to the escalating tariffs. “This might be a year where we have to make tough choices.”
Republicans took umbrage with Meyer’s warning about the ability to support the federal government while the legislators would have to make hard decisions this year.
“I find it interesting that he started by saying we need to work together and then takes it absolutely unnecessary to take a shot at the minority party, lecturing us about federal issues of which we have no control,” House Minority Whip Jeffrey Spiegelman (R-Smyrna) said.
While the education proposals did speak to those in the Republican Caucus, those like Senate Minority Whip Brian Pettyjohn (R-Georgetown) were critical of the governor’s plan to increase taxes and fees to offset the budget growth.
“A former colleague said famously that we don’t have a revenue problem, we have a spending problem,” he said, quoting former state Senator Colin Bonini. “We need to make Delaware a good environment for those high wage earners, so they want to come here. If we do, we won’t need to tax them more because there’s going to be a lot of them.”
