December 15, 2025
Preface:
At its meeting today, the Delaware Economic and Financial Advisory Council (DEFAC) issued its latest state revenue estimate for the upcoming fiscal year, which begins July 1st.
According to the non-partisan group, the amount of money flowing into the state’s coffers during FY 2027 that can be appropriated is $7.098 billion—an increase of $365 million from the estimate made two months ago.
The DEFAC estimates are key to state spending. By law, Delaware budget writers can spend no more than 98% of state revenue.
The estimates are made six times each fiscal year. Today’s estimate is the second in the series, but one of the most influential. The governor’s suggested state operating and capital budgets, which will be unveiled late next month, will be based on this projection. Legislative budget writers will use these spending plans as a starting point when they begin their work in February to craft the final budgets.
Statement from the House Republican Caucus:
“While today’s forecast was welcome news, we continue to urge the governor and our Democratic colleagues who control the budget-writing Joint Finance and Bond Bill committees to take a cautious approach.
“State spending has recently been growing at an unsustainable rate. In FY 2022, we enacted an operating budget of $4.771 billion. Our current FY 2026 budget is $6.580 billion—an increase of more than $1.8 billion, or about 38%, over the four-year period.
“Today’s estimate leaves the $366 million Rainy Day Fund and the $469 million Budget Stabilization Fund intact. We advocate for leaving this money untouched and in reserve.
“Our state, nation, and world are facing uncertain economic conditions. While we’re still optimistic for the future, hope is not a successful fiscal strategy.
“We still have four more state revenue estimates this spring, with the last and deciding forecast not being issued until June. As we head into the New Year, let us resolve to adopt prudence as we allocate the taxpayers’ money.”
