Gov. Carney signs $4.27 billion budget, awards bonuses to state employees

State employees and retirees can expect to receive some extra spending money now that finishing touches are complete on the state budget.

On the second-to-last day of legislative session, Gov. John Carney signed the state's $4.27 billion operating budget bill and a supplement to the budget valued at $49 million that contained the bonuses. 

The operating budget passed unanimously through the House Tuesday, with three days to go in the session, after passing in the Senate on June 20. The relatively easy passage came in stark comparison to last year's budget signing, which ran past its June 30 deadline for the first time in decades.  

"What a difference a year makes," Carney said. "Last year, we were signing these budgets at 3:30 (a.m.) on July 3. I could barely see the documents I was signing."

As part of a budget supplement, state employees will receive a one-time $500 bonus and retired state employees will receive a $400 bonus in their pension checks. The extra cash is expected to be paid out in the fall.

"This was one of the really thoughtful things that the committee did," Carney said, referring to the budget-writing Joint Finance Committee.

The bonuses come in addition to pay raises that state employees will receive as part of the budget. Public school teachers will receive a 2 percent pay hike and other state employees will receive a $1,000 flat increase. 

Overall, the state employee bonuses are part of $73 million in new spending JFC proposed in addition to the operating budget.

It amounts to about two-thirds of the $180 million in additional revenue added to the state's bottom line since the start of the year. The corporate franchise tax and the corporate income tax were large contributors to the revenue increase, but the increase is not expected to continue in coming years. 

The state is spending $34 million on the bonuses, with the lump-sum state employee bonuses valued at $23 million and the pension bump valued at $11 million.

The pension supplement is one of the first income increases approved for the state's 27,000 pension recipients since 2015, when the General Assembly awarded them a 1 percent cost-of-living increase.

The bill also allocates more than $15 million to the Office of Management and Budget for general projects, such as school transportation, the Delaware Health Care Claims Database and the Behavioral Health Consortium.

The allocation, like the bonuses, is a one-time investment.

GENERAL ASSEMBLY NEWS

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Delaware General Assembly approves $4.27B spending plan

Contact Brandon Holveck at bholveck@delawareonline.com.