The Delaware Economic Financial Advisory Council (DEFAC) issued its latest state revenue estimate earlier this week for the upcoming fiscal year.
This estimate is the third in a series of five, which collectively play a major role in determining state spending. By law, Delaware budget writers can appropriate no more than 98% of expected state revenue.
For Fiscal Year 2027, which starts July 1, the non-partisan group determined that the amount of spendable money flowing into the state’s coffers will be $7.132 billion.
While that is an increase of $34 million from the previous estimate made three months ago, it is $113 million lower than the total spending the governor recommended in January in his four annual appropriations bills: the General Fund Operating Budget, Capital Budget (a.k.a., the Bond Bill), a one-time Supplemental Appropriations Bill, and the Grants-in-Aid Bill.
The next revenue forecast, scheduled for May 18, is arguably the most influential of the series. Legislative budget writers will use this estimate to draft the state’s spending plans, setting them, more or less, into their final forms. The measures will be slightly tweaked in late June to align with the last revenue forecast.