Delaware Department of Finance

The meeting featured a presentation from Moody's Analytics regarding the U.S. Economic Outlook, focusing on policy headwinds and artificial intelligence tailwinds. Key agenda items included reviewing and accepting General Fund Expenditure forecasts for Fiscal Years 2026 and 2027, with significant discussion centered on Medicaid expenditure growth and federal program changes. Revenue forecasts were also discussed, highlighting major downward revisions to Corporate Income Tax estimates, partly attributed to the One Big Beautiful Bill Act (OBBBA). Expenditure and revenue estimates for the Transportation Trust Fund (TTF) for FY 2026 and FY 2027 were presented and adopted, noting the impact of recent legislation on toll revenues and new electric vehicle fees. In other business, the committee voted to return the Healthcare Spending Benchmark recommendation to the Subcommittee for further review before a formal vote in December.

The meeting included presentations and discussions on General Fund Expenditure forecasts for fiscal years 2025 and 2026, covering various factors influencing these projections such as state salaries, healthcare costs, and capital outlay. The economic outlook was reviewed, noting minimal changes since the previous meeting but highlighting the potential impact of tariffs and the conflict in the Middle East. General Fund Revenue forecasts were also presented, with revisions made to account for Personal Income Tax payments and other revenue sources. The Transportation Trust Fund's expenditure and revenue forecasts were discussed, with adjustments recommended for toll road revenues and road system projects. An update was shared on the Healthcare Spending Benchmark Subcommittee, and the Debt Authorization Limit for FY 2026 was reviewed.

The virtual town hall covered topics such as the state budget, the coronavirus situation, and greenhouse gas emissions from the transportation sector. The discussion included the state's response to the first positive coronavirus test, advice for educators and the general public, and the importance of hand hygiene. The state's approach to budgeting, investments in renewable energy, and infrastructure for electric vehicles were also addressed.

The meeting included presentations and discussions on General Fund Expenditure forecasts for fiscal years 2025 and 2026, focusing on spending authority, reversions, and budgetary expenditures. Revenue forecasts were also presented, covering economic outlook, general fund revenues, and potential areas of variance. Additionally, the Transportation Trust Fund's expenditure and revenue forecasts were discussed, including the impact of SEPTA cuts on Delaware. The council also reviewed the Balance and Appropriations worksheet.

The meeting included presentations and discussions on General Fund Expenditure forecasts for fiscal years 2025 and 2026, as well as General Fund Revenue forecasts. The economic outlook was reviewed, noting potential risks such as weak consumer spending and federal employee layoffs. Recommendations were made for changes to the revenue forecast, including adjustments to PIT withholding, refunds, lottery estimates, and realty transfer tax collections. The Transportation Trust Fund's expenditure and revenue forecasts were also presented and discussed.