Historical Delaware budget and finance information

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The historical Delaware budget and finance information below applies to years prior to the most current fiscal year. With the exception of the tab labeled "Prior fiscal year budgets," the tabs below display information, from several different fiscal years, as it was presented on Ballotpedia in prior calendar years. For more current information regarding Delaware's budget and finances, click here.

As published 2016

Delaware budget and finances

General information

Budget calendar: Annual

Fiscal year: 2017

State credit rating: AAA (as of 2014)

Current governor: Jack Markell

Financial figures

Total spending (state and federal funds): $9.4 billion (estimated for 2015)

Per capita spending: $9,956.30 (estimated for 2015)

Total state tax collections: $3.2 billion (2014)

Per capita tax collections: $3,393.46 (2014)

State debt: $16 billion (as of 2014)

Per capita state debt: $17,437 (as of 2014)

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

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 2014 and 2015, total government spending in Delaware increased by approximately $262 million—from $9.2 billion in fiscal year 2014 to an estimated $9.4 billion in 2015. This represents a 2.78-percent increase.

In Delaware in fiscal year 2014, 41.5 percent of total tax revenues came from income taxes. Licenses accounted for 41.0 percent of total state tax collections.

Education accounted for 28.6 percent of state expenditures in fiscal year 2015, while 17.3 percent went to Medicaid.

The Delaware state budget and financial data presented here come from different years because the states and the federal government report and publish the information at different times.

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.

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can 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.

Revenues

2014 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2014 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2013 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 "2013 population" and "Per capita collections" have not been abbreviated.

Compared to neighboring states, Delaware had the second highest state tax collections per capita, at $3,393.

State tax collections by source ($ in thousands), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes	Total	2013 population	Per capita collections
Delaware	N/A	$480,352	$1,301,737	$1,319,213	$74,867	$3,176,169	935,968	$3,393
Maryland	$725,694	$8,022,537	$853,851	$8,756,557	$570,430	$18,929,069	5,975,346	$3,168
New Jersey	$6,705	$12,751,851	$1,516,698	$14,341,741	$1,062,231	$29,679,226	8,938,844	$3,320
New York	N/A	$23,544,789	$1,884,841	$47,826,461	$3,722,891	$76,978,982	19,748,858	$3,898
Pennsylvania	$45,017	$17,419,429	$2,302,934	$13,111,325	$1,314,164	$34,192,869	12,793,767	$2,673
United States	$14,232,835	$411,414,175	$51,120,024	$357,104,785	$31,880,270	$865,752,089	318,907,401	$2,715
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Delaware tax collections by source in 2014.
Source: U.S. Census Bureau

The table below lists 2014 tax collections by source as percentages of total collections. About 41.5 percent of Delaware's total state tax collections came from income taxes.

State tax collections by source (as percentages), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes
Delaware	N/A	15.1%	41.0%	41.5%	2.4%
Maryland	3.8%	42.4%	4.5%	46.3%	3.0%
New Jersey	0.0%	43.0%	5.1%	48.3%	3.6%
New York	N/A	30.6%	2.4%	62.1%	4.8%
Pennsylvania	0.1%	50.9%	6.7%	38.3%	3.8%
Source: U.S. Census Bureau, "2014 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 2013 federal aid to the states accounted for roughly 30 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.5 billion in federal aid in 2013, accounting for about 43 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 2013, or just 19 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 2013. That year, Delaware received approximately $1.9 billion in federal aid, 24.8 percent of the state's total general revenues. Taking into consideration the state's 2013 population, this came out to about $2,084 in federal aid per capita. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2013
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenues	Ranking (by % of general revenues)	Est. 2013 population	Aid per capita
Delaware	$1,929,185	24.8%	45	925,749	$2,084
Maryland	$9,952,960	28.6%	33	5,928,814	$1,679
New Jersey	$13,755,548	25.5%	41	8,899,339	$1,546
New York	$46,272,851	28.0%	34	19,651,127	$2,355
Pennsylvania	$21,219,116	30.4%	29	12,773,801	$1,6611
Sources: United States Census Bureau, "State Government Finances: 2013," accessed April 4, 2016 United States Census Bureau, "State totals: Vintage 2013," accessed April 8, 2016 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2013.

Spending

Estimated 2015 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2015 (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.

Delaware's total estimated government spending in fiscal year 2015 was $9.4 billion, which was the lowest amount when compared to surrounding states.

Total estimated state spending, FY 2015 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
Delaware	$7,355	$2,063	$9,418	945,934	$9,956.30
Maryland	$28,283	$12,053	$40,336	6,006,401	$6,715.50
New Jersey	$39,460	$15,142	$54,602	8,958,013	$6,095.32
New York	$94,624	$45,743	$140,367	19,795,791	$7,090.75
Pennsylvania	$46,900	$25,921	$72,821	12,802,503	$5,688.03
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, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016

Spending by function

Breakdown of spending by function in FY 2014.
Source: National Association of State Budget Officers

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 2014 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 2014, K-12 education accounted for 24.1 percent of Delaware's total expenditures.

State spending by function as a percent of total expenditures, FY 2014
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
Delaware	24.1%	4.5%	0.2%	17.3%	2.9%	7.7%	43.1%
Maryland	18.8%	14.4%	3.6%	22.5%	3.9%	10.5%	26.3%
New Jersey	23.6%	7.7%	0.8%	22.5%	3.1%	9.9%	32.5%
New York	19.3%	7.6%	3.2%	29.1%	2.3%	6.5%	32.0%
Pennsylvania	18.7%	2.6%	5.5%	33.3%	3.4%	9.6%	26.8%
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

Between 2010 and 2014, the share of the Delaware state budget spent on Medicaid decreased from 14.4 percent in 2010 to 17.3 percent in 2014. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).

Spending by function from 2010 to 2014 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
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."

Fiscal year budgets

See also: Historical Delaware budget and finance information

Fiscal year 2016

See budget bill: HB 225, SB 160, HB 230

Governor Jack Markell announced his fiscal year 2016 budget proposal on January 29, 2015. Total proposed spending totaled $3.9 billion, which was an overall increase of 2.37 percent from the 2015 budget. The budget proposed a significant increase in public education funding. This increase included a $15 million fund to hire more teachers in public schools. An additional $9.5 million was outlined for additional costs based on feedback from education professionals. The budget also proposed the Bond and Capital Improvements Act, which would have designated $386 million towards state agency capital projects, transportation projects and grants-in-aid. The budget would have also fully funded the state's rainy day fund.

Governor Markell signed the state's budget on July 1, 2015. Total spending equaled about $3.91 billion. The governor announced that the budget only appropriated 98 percent of state revenue, fully funded the rainy day fund, maintained the state's AAA bond rating and adhered to a three part debt limit. Many of the education investments mentioned in the governor's proposal were also in the official budget, including hiring more teachers and increasing teacher pay. Funds were also designated for various infrastructure improvements.

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Delaware had a state debt of approximately $16 billion. Its state debt per capita was $17,437. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
Delaware	$15,991,093,000	$17,437	17
Maryland	$94,211,004,000	$16,010	20
New Jersey	$213,933,875,000	$24,134	6
New York	$387,465,667,000	$19,799	10
Pennsylvania	$184,903,767,000	$14,487	24
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Taxpayer burden

TIA Methodology: To figure a state’s taxpayer burden or surplus, TIA looked at a state’s total reported assets minus capital assets and assets restricted by law (buildings, roads, land, etc.) to calculate “available assets,” which were then compared to the amount of money the state owes in bills, including retirement obligations such as pension plans and healthcare benefits for retirees. If the difference between available assets and total bills was positive, TIA called this a surplus; if it was negative, this was a burden. This amount was then divided by the number of individual tax returns with a positive tax liability, thus expressing the total state surplus or burden on a per-taxpayer basis.

According to a report released in September 2015 by the nonprofit Truth in Accounting (TIA), Delaware ranked 10th worst in the country in “taxpayer burden.” Rather than using per capita state debt, TIA ranked states based on what it called a “taxpayer burden,” a term that reflects “the amount each taxpayer would have to send to their state’s treasury in order for the state to be debt-free.” On the other hand, states that had sufficient resources to pay their bills were said to have a “taxpayer surplus,” which represents the amount that each taxpayer would receive if the state were to disburse its excess funds.

Based on analysis of Delaware’s Comprehensive Annual Financial Report from June 30, 2014 and actuarial reports for the state’s retirement plans, TIA concluded that $6.6 billion in promised retirement benefits were unfunded, but only $2.3 billion of these liabilities were reported on Delaware’s balance sheet. With all of the unfunded retirement benefits included in the total debt, the state had a shortfall of $5.4 billion, or a taxpayer burden of $17,400.

Public pensions

See also: Public pensions in Delaware

Between fiscal years 2008 and 2012, the funded ratio of Delaware's state-administered pension plans decreased from 98.5 percent to 88.3 percent. The state paid 99 percent of its annual required contribution, and as of fiscal year 2012, the pension system's unfunded accrued liability totaled $1.01 billion. This amounted to $1,150 in unfunded liabilities per capita.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.

The table below lists the Standard and Poor's credit ratings for Delaware and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
Delaware	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Maryland	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
New Jersey	A+	AA-	AA-	AA-	AA	AA	AA	AA	AA	AA	AA-
New York	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Pennsylvania	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

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.

Transparency

See also: "Following the Money" report, 2015

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 March 2015. 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 71, indicating that Delaware was "Middling" in terms of transparency regarding state spending.

As published 2015

State finances in the U.S.
State tax policy in the U.S.
Pension Policy
State finances on the ballot Taxes on the ballot Glossary of state budget terms Public pensions

The information on this tab contains: Spending (fiscal years 2013 and 2014) Revenues (fiscal year 2013) State debt (fiscal year 2012) Federal aid to the state budget (fiscal year 2012) Budget process

Between fiscal years 2013 and 2014, total government spending in Delaware remained about the same at approximately $9.2 billion. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Delaware a credit rating of AAA.

HIGHLIGHTS

In fiscal year 2014, total estimated spending in Delaware amounted to $9.2 billion.

Estimated per capita spending totaled $9,786, fourth-highest in the nation.

Spending

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.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (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.

Total estimated spending in Delaware amounted to $9.2 billion in 2014, lowest among its neighboring states. Its estimated per capita spending was highest among its neighbors at $9,786.

Total estimated state spending, FY 2014 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
Delaware	$7,253	$1,903	$9,156	935,614	$9,786.09
Maryland	$27,479	$9,859	$37,338	5,976,407	$6,247.57
New Jersey	$39,574	$13,566	$53,140	8,938,175	$5,945.29
New York	$92,915	$41,171	$134,086	19,746,227	$6,790.46
Pennsylvania	$62,391	$23,810	$86,201	12,787,209	$6,741.19
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

Spending by function

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

Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in Delaware can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 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 2013 Delaware dedicated smaller portions of its budget to Medicaid and public assistance than its neighboring states. The largest single portion of its budget was dedicated to K-12 education at 24.3 percent. The bulk of its spending went to expenditures labeled as "Other."

State spending by function as a percent of total expenditures, FY 2013
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Trans- portation	Other
Delaware	24.3%	4.6%	0.3%	17.2%	3%	8.7%	42%
Maryland	19.2%	14.5%	3.8%	21%	4%	10%	27.5%
New Jersey	24.9%	7.9%	0.9%	20.4%	3.1%	10%	32.8%
New York	19.3%	7.6%	3%	29.1%	2.5%	6.4%	32.1%
Pennsylvania	14.9%	2.1%	1.5%	26.9%	2.6%	7.5%	44.6%
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

Between 2009 and 2013, the portion of Delaware's budget dedicated to Medicaid rose from 12.3 percent to 17.2 percent. Meanwhile, the portion dedicated to transportation fell from 11.1 percent to 8.7 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).

Spending by function from 2009 to 2013 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
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%
2009	23.7%	4.1%	0.3%	12.3%	3.0%	11.1%	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."

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.

In 2013 Delaware's total tax collections equaled $3.3 billion. Its per capita collections amounted to $3,617.

State tax collections by source ($ in thousands)
State	Property taxes	Sales and gross receipts	Licenses	Individual income taxes	Corporation net income taxes	Other taxes	Total	2013 population	Per capita collections
Delaware	N/A	$487,202	$1,259,277	$1,130,501	$309,644	$159,692	$3,346,316	925,240	$3,616.70
Maryland	$750,927	$7,347,048	$805,292	$7,693,324	$952,092	$569,508	$18,118,191	5,938,737	$3,050.85
New Jersey	$4,620	$12,198,133	$1,516,432	$12,108,615	$2,282,055	$967,026	$29,076,881	8,911,502	$3,262.85
New York	N/A	$23,217,491	$1,952,367	$40,230,379	$4,920,605	$3,346,329	$73,667,171	19,695,680	$3,740.27
Pennsylvania	$55,537	$17,106,300	$2,585,202	$10,777,334	$2,208,163	$1,233,090	$33,965,626	12,781,296	$2,657.45
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Delaware tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In Delaware, license sales accounted for 37.6 percent of tax collections.

State tax collections by source (as percentages)
State	Property taxes	Sales and gross receipts	Licenses	Individual income taxes	Corporation net income taxes	Other taxes
Delaware	N/A	14.56%	37.63%	33.78%	9.25%	4.77%
Maryland	4.14%	40.55%	4.44%	42.46%	5.25%	3.14%
New Jersey	0.02%	41.95%	5.22%	41.64%	7.85%	3.33%
New York	N/A	31.52%	2.65%	54.61%	6.68%	4.54%
Pennsylvania	0.16%	50.36%	7.61%	31.73%	6.50%	3.63%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Delaware had a state debt of approximately $16 billion. Its state debt per capita was $17,437. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
Delaware	$15,991,093,000	$17,437	17
Maryland	$94,211,004,000	$16,010	20
New Jersey	$213,933,875,000	$24,134	6
New York	$387,465,667,000	$19,799	10
Pennsylvania	$184,903,767,000	$14,487	24
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: Public pensions in Delaware

Between fiscal years 2008 and 2012, the funded ratio of Delaware's state-administered pension plans decreased from 98.5 percent to 88.3 percent. The state paid 99 percent of its annual required contribution, and as of fiscal year 2012, the pension system's unfunded accrued liability totaled $1.01 billion. This amounted to $1,150 in unfunded liabilities per capita.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.

The table below lists the Standard and Poor's credit ratings for Delaware and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
Delaware	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Maryland	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
New Jersey	A+	AA-	AA-	AA-	AA	AA	AA	AA	AA	AA	AA-
New York	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Pennsylvania	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

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, such as Medicaid. Federal aid varies from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.

The table below notes what share of Delaware’s general revenues came from the federal government in 2012. That year, Delaware received approximately $1.8 billion in federal aid, 24.7 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2012
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenue	Ranking
Delaware	$1,814,112	24.68%	46
Maryland	$10,030,264	30.16%	33
New Jersey	$13,412,759	26.25%	42
New York	$48,698,785	32.78%	27
Pennsylvania	$20,440,103	30.60%	32
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, Delaware received $817 million in federal stimulus funding between February 2009 and June 2013.

Budget process

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.

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

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 2014. The report, entitled "Following the Money," measured the transparency and accountability of state websites with regard to state government spending. According to the report, Delaware received a grade of D+ and a numerical score of 63, indicating that Delaware was lagging. in terms of transparency regarding state spending.

As published 2014

The information on this tab contains: Spending (fiscal year 2013) Spending by function (fiscal year 2012) Spending trends (fiscal years 2008 to 2012) Revenues (fiscal year 2013) Historical spending (fiscal years 2009 to 2012) Budget transparency

Between fiscal year 2009 and fiscal year 2013, Delaware's total state expenditures increased by approximately $500 million, from $8.7 billion in 2009 to $9.2 billion in 2013. This represented a 5.4 percent increase, below the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).

Spending

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:

• General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
• Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the 'Other funds' column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
• Federal funds: "Funds received directly from the federal government."
• Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013

Breakdown of expenditures in FY 2013
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context). Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)
State	General fund	Federal funds	Other funds	Bonds	Total	Per capita expenditures**
Delaware	$3,659	$1,783	$3,281	$439	$9,162	$9,896.85
Maryland	$15,119	$11,811	$8,909	$1,135	$36,974	$6,236.32
New Jersey	$31,618	$12,485	$6,735	$1,247	$52,085	$5,852.68
New York	$58,960	$38,574	$32,305	$3,258	$133,097	$6,773.00
Pennsylvania	$27,761	$24,144	$15,175	$800	$67,880	$5,314.00
**Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers

Spending by function

2012

Breakdown of expenditures by function in FY 2012
Source: National Association of State Budget Officers

State expenditures in Delaware can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data 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.

Expenditures by function, FY 2012 (as percentages)
State	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
Delaware	24.6%	4.5%	0.3%	15.9%	3.0%	8.9%	42.9%
Maryland	19.5%	14.5%	3.7%	21.5%	4.3%	9.9%	26.5%
New Jersey	24.7%	7.8%	0.9%	21.6%	3.2%	9.3%	32.4%
New York	19.8%	7.6%	2.8%	29.4%	2.3%	6.2%	31.8%
Pennsylvania	18.4%	2.8%	1.9%	33.2%	3.5%	9.3%	30.8%
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

Between 2008 and 2012, state expenditures for elementary and secondary education rose by 1.5 percentage points, representing a 6.5 percent increase in the share of the budget. During that same time, expenditures for Medicaid rose by 4.4 percentage points, representing a 38.3 percent increase in the share of the budget. The table below details changes in expenditures from 2008 to 2012. Fiscal year 2012 data is included in the table below. Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percentages)
Year	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
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%
2009	23.7%	4.1%	0.3%	12.3%	3.0%	11.1%	45.5%
2008	23.1%	4.3%	0.3%	11.5%	3.1%	10.0%	47.7%
Change in %	1.5%	0.2%	0%	4.4%	-0.1%	-1.1%	-4.8%
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."

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)
State	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
Delaware	$0	$1,084	$206	$0	$2,440	$3,730	$4,029.17
Maryland	$7,686	$4,075	$873	$0	$2,324	$14,958	$2,522.93
New Jersey	$8,460	$12,193	$2,454	$1,118	$6,697	$30,922	$3,474.64
New York	$11,232	$40,227	$6,253	$18	$2,461	$60,191	$3,062.98
Pennsylvania	$8,968	$11,472	$2,492	$89	$5,801	$28,822	$2,256.34
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013. Source: National Association of State Budget Officers

In fiscal year 2013, personal income tax accounted for approximately 29 percent of all general fund revenues in Delaware. Compared to the four neighboring states noted above, Delaware's personal income tax to general fund ratio ranked fourth, behind 39 percent in New Jersey, 40 percent in Pennsylvania and 67 percent in New York.

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013. Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Delaware ($ in millions)
Year	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
2013	$0	$1,084	$206	$0	$2,440	$3,730	$4,029.17
2012	$0	$1,042	$119	$0	$2,198	$3,359	$3,662.82
2011	$0	$997	$168	$0	$2,366	$3,531	$3,888.83
2010	$0	$853	$88	$0	$2,294	$3,235	$3,595.60
2009	$0	$911	$126	$0	$2,111	$3,148	$3,556.57
Change in %	N/A	16%	38.8%	N/A	13.5%	15.6%	11.7%
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers

Historical spending

State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported Total Expenditures in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).

Historical state spending in Delaware ($ in millions)
Fiscal year	General Fund		Other funds		Federal funds		Bonds		Budget totals
	Total	% of Budget	Total	% of Budget	Total	% of Budget	Total	% of Budget
2011-2012	$3,592	40%	$3,388	38%	$1,777	20%	$185	2%	$8,942
2010-2011	$3,271	39%	$3,089	37%	$1,849	22%	$203	2%	$8,412
2009-2010	$3,077	35%	$3,783	43%	$1,607	18%	$253	3%	$8,720
Averages:	$3,313	38%	$3,420	39%	$1,744	20%	$214	2%	$8,691

Budget transparency

Transparency evaluation
	Delaware Online Checkbook	Awarded Contracts Directory
Searchability	Y	Y
Grants	Y	N
Contracts	N	Y
Line item expenditures	Y	N
Dept./agency budgets	N	N
Public employee salaries	N	N
Last evaluated in 2009.

See also: Evaluation of Delaware state website and Constitutional provisions regarding reading of bills

As of March 2015, the Delaware Constitution did not provide for a review period or any length of time between when a bill is introduced and when it may be voted on, meaning that the legislature could pass a budget bill without time for citizen review.

Government tools

The table to the right is helpful in evaluating the level of transparency provided by the Delaware Online Checkbook and the Awarded Contracts Directory.

Support for creation of the database

The National Taxpayers Union urged legislators in Delaware to support SB 184, which would have created a state spending transparency website.

Independent transparency sites

The Caesar Rodney Institute recently launched an independent government spending transparency website, DelawareSpends.com, which allows users to search state employee payrolls and vendor payments. Visitors to the site can also post their own data, thoughts, questions, and concerns on the DelawareSpends Forum.

Multi-Measure Budget Transparency Profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Delaware, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Delaware tied for fourth in the nation with two other states, earning seven out of eight possible points.

Delaware - IGPA score for budget process, contents and disclosure
Budget transparency indicator	Yes or no?
Performance measures
"Generally Accepted Accounting Principles" budget	N
Multi-year forecasting
Annual cycle
Binding revenue forecast
Legislative revenue forecast
Nonpartisan staff
Constitution or statutory tax/spend limitations
TOTAL	7

In addition to the individual state profile, IGPA offered a 50-state comparison and profiles for other states.

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

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 2014. The report, entitled "Following the Money," measured the transparency and accountability of state websites with regard to state government spending. According to the report, Delaware received a grade of D+ and a numerical score of 63, indicating that Delaware was lagging in terms of transparency regarding state spending.

Prior fiscal year budgets

Fiscal year 2016

See budget bill: HB 225, SB 160, HB 230

Governor Jack Markell announced his fiscal year 2016 budget proposal on January 29, 2015. Total proposed spending totaled $3.9 billion, which was an overall increase of 2.37 percent from the 2015 budget. The budget proposed a significant increase in public education funding. This increase included a $15 million fund to hire more teachers in public schools. An additional $9.5 million was outlined for additional costs based on feedback from education professionals. The budget also proposed the Bond and Capital Improvements Act, which would have designated $386 million towards state agency capital projects, transportation projects and grants-in-aid. The budget would have also fully funded the state's rainy day fund.

Governor Markell signed the state's budget on July 1, 2015. Total spending equaled about $3.91 billion. The governor announced that the budget only appropriated 98 percent of state revenue, fully funded the rainy day fund, maintained the state's AAA bond rating and adhered to a three part debt limit. Many of the education investments mentioned in the governor's proposal were also in the official budget, including hiring more teachers and increasing teacher pay. Funds were also designated for various infrastructure improvements.

Fiscal year 2015

See budget bill: SB 255

Governor Jack Markell announced his fiscal year 2015 budget proposal on January 30, 2014. Under the governor's proposal, total state operating funds for fiscal year 2015 would have equaled approximately $3.83 billion. Markell's proposal included $460.9 million in bonds and capital improvements, $253.5 million in capital projects and $207.4 million in transportation projects.

On July 1, 2014, Markell signed into law the fiscal year 2015 operating budget, which totaled approximately $3.8 billion. The enacted budget represented a 2.46 increase over fiscal year 2014. The budget included a $500 raise for state employees.

Fiscal year 2014

See budget bill: HB 200

Delaware state budget -- 2014
Delaware State Legislature
Text:	HB 200
Legislative history
Introduced:	June 19, 2013
House:	June 19, 2013
Vote (lower house):	40-1
Senate:	June 25, 2013
Vote (upper house):	17-4
Governor:	Jack Markell
Signed:	July 1, 2013

The fiscal year 2014 budget was signed into law by Governor Jack Markell on July 1, 2013. The $4 billion budget included $103 million in public education projects and $12 million in higher education projects.

Though the budget passed by large margins in both the Senate and the House, it was not universally praised. Republican legislators believed more could have been done to cut taxes as a slight upturn in the economy had increased tax revenues. There were also concerns for the state's casinos, as they represent a major source of tax revenues, but legislators did agree to an $8 million tax break for casinos, proposed by Governor Jack Markell.

Fiscal year 2013

See also: Delaware state budget (2012-2013)

Fiscal year 2012

See also: Delaware state budget (2011-2012)

Fiscal year 2011

See also: Delaware state budget (2010-2011)

Fiscal year 2010

See also: Delaware state budget (2009-2010)

Fiscal year 2009

See also: Delaware state budget (2008-2009)

See also

• Delaware state budget and finances