House passes $6.5 billion operating budget

The budget, along with a $37 million supplemental spending plan, now head to the Senate.

 

The bill passed by with  35 yeses  with five  Republicans voting no, citing a budget that runs a head of inflation. The nation's rate of inflation was 2.9% in 2024. 

 

The budget represents a 7.37% increase in spending in keeping with the revised budget from Gov. Matt Meyer. Meyer was unable to advance legislation that would have added tax brackets for those with higher incomes.

 

The budget also retained the Budget Stabilization Fund, which is designed to provide a cushion for a future downturn in revenues.

 

Despite scattered signs of an economic downturn, budget forecasts offered room for the spending increase, which comes amid signs of federal funding cuts by the Trump Administration.

 

The operating budget, House Bill 225, is the result of months of public hearings and meetings to review both former Governor Carney’s Recommended Budget and Governor Meyer’s Budget Reset, and to solicit input from state officials, lawmakers, and the public, a release from House Democrats stated.

 

“Each year, the budget-writing process presents us with new challenges. On top of uncertain economic forecasts for the State in the coming years, we are bracing for unprecedented cuts in federal funding later this year,” said state Sen. Paradee, D-Dover, co-chair of the Joint Finance Committee. “Despite this, we have balanced our budget without raising income taxes. We stayed within Governor Meyer’s budget reset growth and maintained the Budget Stabilization Fund at $469.2 million and the Rainy Day Fund at $365.4 million — and we’re ready for whatever the future brings.”

 

HB 225 includes $40 million in authorization to receive additional federal Medicaid funding, which will be used to address statewide health needs, including $10 million for long-term care facilities.

 

Education employees would receive a minimum of a 2% raise, but teachers and classroom staff would receive additional raises as recommended by the Public Education Compensation Committee (PECC), continuing the promise of teacher salaries starting at $60,000. 

 

The one-time supplemental budget, HB 226, includes funding for various initiatives and statewide needs, including teacher-driven funding, victim services and even cell phone pouches for students.

 

The budget bill now goes to the Senate.