House passes $6.9B state budget; lawmakers outline raises, Medicaid funding and one-time investments

The Delaware House on June 24 passed Senate Bill 3 35, the annual appropriations bill for the fiscal year ending June 30, 2027, after floor presentations and a roll-call vote that recorded 36 yes, 3 no, 1 not voting and 1 absent.

Sponsor Representative Williams described the budget as supporting working families, investing in education and health care, and preserving commitments to retirees. The plan includes a 3% pay increase for merit state employees, at least a 3% minimum raise for education employees with additional raises for teachers and classroom staff as recommended by the public education compensation committee, and targeted investments to recruit and retain staff.

The budget provides over $16,200,000 to cover the state share of employee and retiree health insurance premiums, commits $65,800,000 to OPEB investments and $72,000,000 in post-retirement increases, and adds $128,500,000 to cover increases in statewide Medicaid services needs. The Joint Finance Committee also committed a planned $26,400,000 additional investment in purchase of care and increased income eligibility thresholds for certain programs.

Representative Sheep explained his 'no' vote, citing long-term concerns about spending growth outpacing revenue: “we see a 6.3% growth in the budget itself with only about a 2% increase in money coming in the door,” he said, and called the trend “unsustainable.”

After debate the House approved the bill by the recorded margin; sponsors praised Joint Finance Committee members and executive office partners for their work on the budget draft and implementation planning.