Gov. Meyer: State’s budget could see triple whammy this year

After its annual summer break to allow business owners to focus on their businesses, the Rehoboth Beach-Dewey Beach Chamber of Commerce resumed its monthly luncheons Sept. 11 with Gov. Matt Meyer.

Meyer visited the chamber during his campaign in early 2024, but it was his first visit since taking office in January. A lot of his job is making sure Delaware retains its essence of being a safe place to live that’s affordable and has a sense of community, he said.

“I must be new, because there are no boos yet,” said Meyer.

He didn’t have too many prepared words. Instead, he said, he was there to answer questions because he had a hard out.

Meyer was asked if “all the nonsense” going on at the federal level was affecting the state’s budget.

Meyer said it’s still too early to know for sure, but he’s preparing for a triple whammy to hit the budget. He expects spending to outpace revenues. Also, one-time monies that nonprofits rely on are drying up, so those groups are looking to the state for funds. And, budget reconciliation at the federal level is likely to mean the state loses $500 million to $600 million. Changes at the federal level are often felt at the state level, he said.

Meyer said the Delaware Economic and Financial Advisory Council will meet soon, and that’s when projections will be made.

The state’s new paid leave act goes into effect Jan. 1, 2026. Meyer was asked what his office will do for small businesses that typically keep one or two employees on staff year-round, but will now have to temporarily lay them off.

Meyer began his response by saying he believes in the program, but he recognizes it’s not going to be perfect, and he believes there will be circumstances where small businesses will be negatively affected. He said he’ll work closely with the Delaware Department of Labor to analyze the actual costs on small businesses and determine what modifications need to be made.

Meyer was asked about the state’s high electric rates. Delaware generates less than 10% of the power it needs, which is not a formula for success, he said, reminding folks in attendance about the Delaware Nuclear Energy Feasibility Task Force that was established during the most recent legislative session to examine bringing small modular reactors to Delaware. Talks with the companies who could provide these reactors are ongoing, but the problem is there are none of these reactors up and running, he said.

The state is also looking at a diversity of power, he said, pointing to combined cycle gas and solar. There’s an effort to make sure solar power is front and center, he said.

There was a question about transportation. Meyer said his office is talking with Diamond State Line and conducting a ridership study about an expansion to southern Delaware. The cost could be prohibitive because the railroad companies are likely to be inclined to have a line coming to the state’s beaches, he said.

In other chamber news, Carol Everhart, chamber president and CEO, said the chamber board will soon begin in-person interviews to find her replacement. The goal is to have someone picked by the end of the year, unless they kick her out sooner, she said.

Everhart, 81, has been with the chamber since the early 1990s and its leader since 1996. She announced her retirement earlier this summer.

Among her successes is the creation of the Sea Witch Festival, which will celebrate 35 years this year when it takes place Friday, Oct. 24 to Sunday, Oct. 26. It would be 36 if it hadn’t been for COVID, said Everhart, who then reminded everyone in the room to tell the public about changes to the parking routine this year.

For the first time, Rehoboth Beach will be restricting parking on Rehoboth Avenue prior to Sea Witch, said Everhart. There will be no overnight parking Thursday night into Friday morning, she said, and this applies to all Rehoboth Avenue parking spaces beginning at 1 a.m., Friday, Oct. 24, and ending at 6 a.m., the same day.