Plan to give Delaware state workers a raise clears legislative hurdle

State employees are expected to receive raises in the coming year, following approval from the Delaware Legislature. 

The Joint Finance Committee, the powerful General Assembly entity that writes Delaware's budget, approved a plan to increase state salaries, especially for employees who earn the least. 

The bipartisan committee quickly wrapped up markup, a period in which lawmakers begin writing the state’s budget based on recommendations made by the governor. The JFC approved salary increases among dozens of other financial items, which now need to be voted on in each chamber in order to take effect.

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Delaware has a historic surplus of $1 billion, and the budget is expected to grow 7% from the previous year. 

The markup process can take two weeks but similar to last year, the committee finished it in two days. Lawmakers also approved fully funding the McNesby Act, which increases wages for direct support professionals, and restored the senior property tax credit back to $500. 

For state salaries, lawmakers approved a plan that, depending on a full-time employee’s pay grade, could lead to raises ranging from 2.3% to 9%. Employees who make the least would receive the highest increases. 

The average state employee salary is less than $49,000. State employees at or below this level could receive a 5.6% to 9% raise. The state government is the largest employer in Delaware. 

Education employees are expected to receive a 2% raise. Unionized employees’ raises are determined through negotiations. 

All state workers, educators, part-time employees and retirees will receive a $500 bonus under the plan passed by lawmakers. State pensioners would receive a 2% to 3% raise, depending on when they retired. 

These raises come at a time when state government has had difficulty filling lower-paying jobs. This spring, directors of nearly every state agency spoke of how they are struggling with significant vacancies, often due to the lack of competitive salaries.

“We’re going to be able to do a lot of good things,” JFC chair Sen. Trey Paradee, D-Dover, said on Tuesday. “Not every group is going to be completely happy. … We tried to put together a budget where we’re able to do a lot of good for a lot of people.”

This included fully funding the McNesby Act, a 2018 law that mandates rate increases for direct support professionals who provide care for people with disabilities. 

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This year, lawmakers have increased state funding by $16.5 million, which if approved by the General Assembly, will lead to a federal match of $27.5 million. According to a 2019 study, this total amount of money would fully fund disability services in Delaware. 

Last year, the committee dedicated about $12 million in new funds. 

This also follows a $17.2 million increase in reimbursement rates for direct support professionals in the current state operating budget. 

When Paradee announced the full funding of the McNesby Act, people in the audience cheered. 

The committee also voted to increase the senior property tax credit from $400 to $500, restoring it to its pre-2017 level. Lawmakers at that time cut $100 to address a budget shortfall. 

Delaware homeowners 65 and older are eligible for a tax credit against regular school property taxes of 50%, up to $400, under the current program. Those who have moved to Delaware after 2018 must live in the state for 10 years in order to be eligible. It applies only to property taxes on a primary residence. 

The state estimates that, during fiscal 2021, about 70,000 property owners received a senior tax credit of about $340. 

Contact Meredith Newman at (302) 256-2466 or at mnewman@delawareonline.com. Follow her on Twitter at @MereNewman.