Delaware state budget and finances

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Delaware budget and finances

General information

Budget calendar: Annual

Fiscal year: 2017

State credit rating: AAA (as of 2017)

Current governor: John C. Carney Jr.

Financial figures

Total spending (state and federal funds): $10,240,000,000 (estimated 2016)

Per capita spending: $10,756 (estimated 2016)

Total state tax collections: $3,522,301,000 (2016)

Per capita tax collections: $3,700 (2016)

State debt: $4,964,915,000 (2014)

Per capita state debt: $5,259 (2014)

State budget and finance pages • Total state expenditures • State debt • Tax policy in Delaware

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can differ from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis. This article, which is updated on an annual basis, was last updated in June 2017. It contains information from several sources; consequently, the currency of the information can vary from source to source.

In Delaware, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS

Between fiscal years 2015 and 2016, total government spending in Delaware increased by approximately $0.5 billion—from $9.8 billion in fiscal year 2015 to an estimated $10.2 billion in 2016. This represents a 4.8-percent increase.

In Delaware in fiscal year 2015, 41.2 percent of total tax revenues came from license taxes. Income taxes accounted for 40.6 percent of total state tax collections.

Education accounted for 28.2 percent of state expenditures in fiscal year 2015, while 19.2 percent went to Medicaid.

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
• Federal funds are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Revenues

2016 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.

State tax collections by source ($ in thousands), 2016
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes	Total	2016 population	Per capita collections
Delaware	N/A	$539,193	$1,452,596	$1,430,520	$99,992	$3,522,301	952,065	$3,700
Maryland	$748,389	$8,939,430	$884,363	$9,646,537	$675,480	$20,894,199	6,016,447	$3,473
New Jersey	$4,638	$13,173,332	$1,499,889	$15,585,479	$1,283,382	$31,546,720	8,944,469	$3,527
Pennsylvania	$43,124	$19,284,374	$2,159,170	$14,388,463	$1,519,458	$37,394,589	12,784,227	$2,925
United States	$18,364,298	$442,909,995	$52,164,396	$392,286,910	$24,538,146	$930,263,745	322,762,018	$2,882.20
Source: U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed June 26, 2017

The table below lists 2016 tax collections by source as percentages of total collections. About 41.2 percent of Delaware's total state tax collections came from license taxes.

State tax collections by source (as percentages), 2016
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes
Delaware	N/A	15.3%	41.2%	40.6%	2.8%
Maryland	3.6%	42.8%	4.2%	46.2%	3.2%
New Jersey	0.0%	41.8%	4.8%	49.4%	4.1%
Pennsylvania	0.1%	51.6%	5.8%	38.5%	4.1%
Source: U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed April 4, 2016

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2014, federal aid to the states accounted for roughly 31 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.2 billion in federal aid in 2014, accounting for about 41 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2014, or just 17 percent of the state's general revenues, the lowest percentage in the nation.

The table below notes what share of Delaware’s general revenues came from the federal government in 2014. That year, Delaware received approximately $2.0 billion in federal aid, 26.7 percent of the state's general revenues. Taking into consideration the state's 2014 population, this came out to about $2,173 in federal aid per capita. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2014
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenues	Ranking (by % of general revenues)	Est. 2014 population	Aid per capita
Delaware	$2,031,222	26.7%	41	934,948	$2,173
Maryland	$10,670,601	29.4%	32	5,967,295	$1,788
New Jersey	$15,438,821	27.3%	39	8,925,001	$1,730
Pennsylvania	$21,647,328	30.8%	30	12,790,565	$1,692
Sources: United States Census Bureau, "2014 State and Local Government Finances," accessed June 26, 2017 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2014.

Spending

Estimated 2016 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2016 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.

The total estimated government spending in Delaware in fiscal year 2016 was $10.2 billion.

Total estimated state spending, FY 2016 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
Delaware	$8,089	$2,151	$10,240	952,065	$10,756
Maryland	$29,634	$11,549	$41,183	6,016,447	$6,845
New Jersey	$42,398	$17,440	$59,838	8,944,469	$6,690
Pennsylvania	$50,858	$27,153	$78,011	12,784,227	$6,102
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates. Source: National Association of State Budget Officers, "State Expenditure Report (Fiscal 2014-2016)," accessed June 26, 2017

Spending by function

See also: State spending by function as a percent of total expenditures

State spending in Delaware can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2015 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

In fiscal year 2015, other spending accounted for 41.7 percent of Delaware's total expenditures.

State spending by function as a percent of total expenditures, FY 2015
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Trans- portation	Other
Delaware	23.9%	4.3%	0.3%	19.2%	3.0%	7.7%	41.7%
Maryland	18.3%	14.2%	3.4%	24.2%	3.9%	10.8%	25.2%
New Jersey	22.9%	8.0%	0.7%	24.2%	2.8%	8.9%	32.5%
Pennsylvania	18.5%	2.4%	1.6%	37.0%	3.4%	10.4%	26.6%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

The table below details the spending trends in Delaware in previous years. Figures are rendered as percentages, indicating the share of the total budget spent per category.

Spending by function from 2010 to 2015 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2015	23.9%	4.3%	0.3%	19.2%	3.0%	7.7%	41.7%
2014	24.1%	4.5%	0.2%	17.3%	2.9%	7.7%	43.1%
2013	24.3%	4.6%	0.3%	17.2%	3%	8.7%	42%
2012	24.6%	4.5%	0.3%	15.9%	3.0%	8.9%	42.9%
2011	24.5%	4.7%	0.3%	16.2%	3.0%	8.3%	43.0%
2010	23.8%	4.2%	0.5%	14.4%	2.9%	8.6%	45.5%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

State debt

See also: Delaware state debt

State debt refers to any debt owned by a state government. Debt may include any financial obligations a state has that have not been paid, such as bonds issued by state governments, money borrowed by a state government that has not been repaid, or post-retirement benefits promised to state employees. According to the U.S. Census Bureau, Delaware had a debt of $4,964,915,000 in fiscal year 2015. The state debt per capita was $5,259. This ranked Delaware 42nd among the states in debt and 10th in per capita debt. The total state debt owned by the 50 states was $1.15 trillion with a per capita debt of $3,582.

Economic indicators

See also: Economic indicators by state

Delaware's GDP increased by 1.2 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.

In 2011, Delaware had the smallest percentage among its neighboring states of residents who earned incomes at least 400 percent of the federal poverty level, with a median annual household income of $54,377 from 2011 to 2013. Its unemployment rate in September 2014 was 6.5 percent, 0.6 percentage points above the national rate.

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)†
	Under 100%	100-199%	200-399%	400%+		Sept. 2013	Sept. 2014
Delaware	14%	18%	31%	36%	$54,377	6.6%	6.5%	$62,703
Maryland	10%	16%	28%	46%	$69,518	6.5%	6.3%	$342,382
New Jersey	11%	15%	28%	46%	$65,321	7.9%	6.5%	$543,071
Pennsylvania	13%	17%	30%	40%	$52,481	7.3%	5.7%	$644,915
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † Median annual household income, 2011-2013. ‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

Budget process

State documents and agenciesBelow are links to official Delaware budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office. Delaware CAFR Delaware budget agency

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:

1. In July, the governor sends budget instructions to state agencies.
2. In October, agencies submit their budget requests to the governor.
3. Budget hearings are held with the public in November.
4. On or before February 1, the governor submits his or her proposed budget to the state legislature.
5. The legislature must pass a budget with a simple majority by June 30. The fiscal year begins on July 1.

The governor is statutorily required to submit a balanced budget to the legislature. In turn, the legislature must pass a balanced budget, and any budget signed into law by the governor must be balanced.

Delaware is one of 44 states in which the governor has line item veto authority.

Delaware maintains two major governmental funds: the General Fund and the Special Fund. Within the Special Fund, there are four category types: Appropriated Special Funds (ASF), Non-appropriated Special Funds (NSF), Federal Funds, and Bond Funds.

Agencies, offices, and committees

The following standing committees in the Delaware General Assembly deal with budget and finance matters:

1. Appropriations Committee, Delaware House of Representatives
2. Finance Committee, Delaware State Senate
3. Joint Finance Committee, Delaware House of Representatives
4. Joint Finance Committee, Delaware State Legislature
5. Revenue & Finance Committee, Delaware House of Representatives

The Delaware State Auditor evaluates the finances of the state government and prepares reports of findings from its audits. The auditor is elected ever four years in midterm election years and is a partisan office.

The Delaware Treasurer is the chief financial officer of the state government and manages the banking, accounting and investing of the state. The treasurer is elected every four years in midterm election years and is a partisan office.

Public Interest Research Group 2016 report

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2016. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, Delaware received a grade of C+ and a numerical score of 77, indicating that Delaware was "Middling" in terms of transparency regarding state spending.

Noteworthy events

• On the morning of July 3, 2017, Delaware Gov. John Carney (D) signed into law a budget passed by the Legislature on July 2, 2017. The state began the 2018 fiscal year without an annual budget in place and was one of six states Ballotpedia tracked in 2017 that were on the verge of a partial government shutdown or the implementation of spending cuts to nonessential government services. The Legislature passed a temporary funding package on July 1, 2017, in order to avoid a partial government shutdown. Delaware’s budget debate throughout the 2017 regular session centered largely on Democratic proposals to raise the personal income tax rate and Republican proposals to alter the state’s prevailing wage laws—neither of which ultimately made it into the final budget. Lawmakers agreed to a series of tax increases on real estate sales, alcohol, and cigarettes in order to address a projected $390 million shortfall.

Budget and finance ballot measures

Voting on state and local government budgets, spending, and finance
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
Local City budgets County budgets Spending limits School budgets

See also: Spending and finance on the ballot and List of Delaware ballot measures

Ballotpedia has tracked no ballot measures relating to state and local budget and finance matters in Delaware

Budget and finance legislation

The following is a list of recent budget and finance bills that have been introduced in or passed by the Delaware state legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

Recent news

The link below is to the most recent stories in a Google news search for the terms Delaware budget. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Delaware state budget and finances - Google News

Contact

Budget Development and Administration
122 Martin Luther King Jr. Blvd. South
Dover, DE 19901
Phone: 302-739-4206
FAX: 302-739-5661

See also

• Historical Delaware budget and finance information
• Tax policy in Delaware
• Delaware government sector lobbying
• Delaware public pensions
• Governor of Delaware
• Delaware State Senate
• Delaware House of Representatives
• Delaware State Legislature