Copyright Wilmington News Journal
Delaware may soon be on the receiving end of another federally fueled budget shortfall. One projection from the Delaware Economic and Financial Advisory Council on Oct. 20 estimated the state stands to lose about $400 million over this year and the next two fiscal years, due to provisions included in the “Big Beautiful Bill.” That's President Donald Trump’s "One Big Beautiful Bill Act," as it is officially titled, that took effect this summer. And the new projection delivered to lawmakers comes as Delaware already stands to weather other significant changes, from food assistance to Medicaid. This will mean that “hundreds of millions” in funding already saved for health care, schools and other critical services across the state will be in jeopardy, according to a collective statement from the General Assembly's top Democrats issued Oct. 22. That is, these lawmakers say, unless steps are taken to separate the state’s corporate tax code from its federal counterpart. This is in large part because Delaware’s code “automatically mirrors” national law, according to legislators. Lawmakers also describe how the law includes “corporate giveaways,” meaning that taxpayer dollars would be taken and given back to big businesses, as explained by Joint Finance Committee co-chair Rep. Kim Williams. “We get a certain amount from the federal government,” House Majority Leader Kerri Evelyn Harris told Delaware Online/The News Journal. “And when that doesn’t trickle down to the states, we can’t allow that to trickle down to our people in quite the same way.” Delaware’s Democratic leaders looked to assure residents they endorse “taking appropriate, timely action” and ensure state laws will not mirror Washington’s actions. This will include the governor’s office and both legislative chambers actively collaborating “on a daily basis” to figure out what options are available, what else could be expected in terms of cuts and ultimately, how to prepare to move forward, Harris said. “Delaware instead will preserve the resources needed to support Delawareans and show what is possible not through division and wealth inequality, but through a government by, for, and committed to serving the people,” lawmakers said in the statement. Gov. Matt Meyer also issued similar sentiments following the projection on Oct. 20, reassuring Delawareans: “We won’t let that happen.” Meyer added he will meet with legislators on both sides of the political aisle to create “a simple, responsible fix” that would not only protect the budget but also keeps the First State competitive, and therefore ensures employers have security and investments in education, health care and public safety stay on course. “Now more than ever, we need folks to realize that we have to work together, not fight each other,” Harris said. This story is developing and will be updated as more information becomes available.
