Funding, economic slowdown could impact state’s bottom line

Gov. Matt Meyer’s first 100 days in office have coincided with a flurry of federal action that could impact Delaware’s bottom line.

His fiscal year 2026 budget announced at the end of March called for an ambitious 7.4% growth, but in an April 29 interview with the Cape Gazette, Meyer said that could change when the Delaware Economic and Financial Advisory Council releases its May report on revenues.

“To be honest, as much as the executive orders that make the news and the various withdrawals of support of various federal programs in the state, that matters, but I think what will likely matter more is the potential economic slowdown,” Meyer said. 

Regardless of what happens, he said he is committed to helping working families in the state.

Meyer said his transportation revenue proposal includes no gas tax, and he plans to exit the California emission program requiring almost half of new cars and vehicles be zero-emission by the end of 2026, a program entered into by the Carney administration.

“I’ve been very clear that we are in the process of getting out of that,” he said. “The only reason I haven’t stood up and announced we’re getting out of it is we’re waiting to see what the federal government does. I believe strongly that Delawareans should be able to choose what vehicle they want to purchase.”

In one of his first actions as governor, Meyer signed an executive order requiring state agencies to conduct an internal review, identify areas where improvements can be made, and submit a report to the governor’s office within 90 days.

“We’re making some hard decisions, and there will be announcements about that – areas of government that are no longer working that need to be reworked.”

Meyer said his administration has started to find some cost savings, but it has been challenging.

Federal cuts impacting Delaware include 62 positions connected to the Centers for Disease Control, which are part of an effort to be restored through the courts. 

In order to protect core services from potential federal funding cuts, Meyer has proposed a federal cut contingency fund of $21 million in his budget.

The current situation with AmeriCorps, which funds about 130 jobs that provide services such as reading programs for Delaware schools, is more immediate, Meyer said.

“It’s like we don’t have money to pay you tomorrow. So a lot of times we’re trying to fill those gaps rather than looking at the longer-term structural issues where there can be real savings,” Meyer said. “But in the state, we’re taking a microscope and looking hard at it. We think we’re going to have a lot more by August/September to really understand where the savings can be found, and various things that we can turn off.” 

Expanding government is easier than shutting down things that aren’t working or showing performance, he said.

“Sometimes you have really good people working in them that just need to be retrained or positioned elsewhere in government, or in the private sector,” he said.

In particular, Meyer said, he wants to make sure veterans who have been let go on the federal level have an opportunity to find employment. “It is important to me as a moral imperative that we find a way for them to get a job and serve the people of Delaware,” he said.

Meyer highlights first 100 days

In a press release sent out May 1, Meyer touted his successes in education, healthcare, housing, the economy, energy and government.

His investing in classrooms initiative includes $75 million for teacher raises, a push to remove cellphones from classrooms, and support for school funding reform.

On healthcare, he seeks to eliminate $50 million in medical debt for hardworking Delawareans, has launched the Farm-to-Pharmacy pilot program, and supports bringing a medical school to the state.

Streamlining the permitting process for affordable housing, and $35.5 million in housing investment proposals are part of his housing plan, and on the economic front, Meyer supports a Port of Wilmington expansion project and the retail cannabis market, and he relaunched the State Small Business Credit Initiative.

Other action highlights include:

• Nominated a new public advocate to represent the public’s interests in utility rate cases
• Signed an executive order reestablishing the Delaware Council on Farm and Food Policy

• Signed an executive order mandating performance reviews for all agencies and improved ethics training for state employees.