AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO BUDGET AND FISCAL REGULATIONS, ESTABLISHING A BUDGET STABILIZATION FUND, DEFINING DEPOSIT AND WITHDRAWAL STANDARDS FOR THE FUND, AND IMPOSING DEPOSIT AND WITHDRAWAL NORMS THROUGHOUT THE ANNUAL GOVERNOR’S RECOMMENDED BUDGET PROCESS.

This Act is the statutory recognition of the recommendations set forth in the June 2, 2023, report of the DEFAC Benchmark Evaluation and Review Panel. This Act builds on the State’s existing appropriation limit methodology by formalizing and maintaining the flexibility inherent in the Budget Stabilization Fund process currently enabled by Executive Order No. 21, approved on June 30, 2018, and the last 6 operating budget acts, including § 65 of the fiscal year 2024 Operating Budget Act. Acknowledging this process in statute includes defining rules for deposits to and withdrawals from the Budget Stabilization Fund and adding an objective and stable measure of sustainable budget growth through an advisory index comprised of certain State economic indicators. This Act requires that only the Governor’s recommended Budget Appropriation Bill consider this methodology and detail proposed plans, if any, deemed necessary or desirable in relation to state revenues or reserve funding.