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Revenues tick up as final state budget deadline looms

Joint Finance Committee meets to crunch numbers
June 5, 2025

As the General Assembly moves into its final weeks of session, revenue numbers are up a bit for next year’s budget.

Revenues posted May 19 by the Delaware Economic and Advisory Financial Council show a nearly $17 million increase in fiscal year 2026 revenues posted from March – a total of $6.77 billion in net receipts.

Revenue from personal income tax, realty transfer tax, gross receipts tax and fees from limited partnerships and LLCs were all up from March numbers. Personal income tax was up $15 million for a total of about $2.8 billion, while the net franchise tax combined with LP/LLC fees was up $18 million for a total of $1.8 billion.

The only categories that were down were the lottery, sin taxes and dividends and interest. 

The state lottery was down about $8 million, dropping from $257 million in March to $249 million in May. Cigarette tax revenue dropped $3.3 million to about $82 million in May, and alcohol taxes were down about $1 million.

Revenue from dividends and interest was down about $20 million.

In summary, DEFAC noted the bottom-line total changes for the current fiscal year 2025 are up 4% for about $255 million and a 2.7% increase is projected at $178 million for fiscal year 2026.

Legislators will use the latest revenue counts as the Joint Finance Committee meets to draft this year’s final budget.

DEFAC will meet Monday, June 16, for the last time this session before the Monday, June 30, deadline for the General Assembly to pass the fiscal year 2026 budget.

 

Melissa Steele is a staff writer covering the state Legislature, government and police. Her newspaper career spans more than 30 years and includes working for the Delaware State News, Burlington County Times, The News Journal, Dover Post and Milford Beacon before coming to the Cape Gazette in 2012. Her work has received numerous awards, most notably a Pulitzer Prize-adjudicated investigative piece, and a runner-up for the MDDC James S. Keat Freedom of Information Award.