Delaware’s fiscal 2027 operating budget won’t be voted on for more than seven months, but the process to craft the spending plan is well underway. The Delaware Office of Management and Budget (OMB) is completing its round of agency budget hearings this week, and DANA was there to advocate for Delaware’s nonprofit sector. 

DANA testified at the hearings for the Department of Services for Children, Youth & Their Families (DSCYF), the Department of Labor (DOL), and the Department of Health & Social Services (DHSS).  

At all three hearings, DANA emphasized that nonprofits are indispensable partners in delivering state-funded services yet continue to operate within a contracting system that is inefficient, financially unsustainable, outdated, and increasingly misaligned with workforce and inflationary pressures. DANA also advocated for reforms to the current contract process and overall increased investment in infrastructure.  

DANA emphasized across agency hearings that nonprofits are delivering core state services under outdated rates, chronic payment delays, and reimbursements far below actual cost. At DSCYF, many rates still reflect 2012 levels and lack cost escalators, creating instability when paired with six-to-nine-month payment delays.  

At DOL, DANA noted that more than 75% of providers are reimbursed below cost, expenses have risen 30%, and 30-90-day payment delays hinder workforce and reentry programs. At DHSS, rates unchanged since 2019 now fall 20-30% below market, straining behavioral health, disability, aging, and family-support services.  

DANA will continue raising these concerns at the upcoming Department of Education and Department of Corrections hearings. 

Next Steps in the State Budget Cycle 
Following the conclusion of OMB’s budget hearings, the Governor’s Recommended Budget (GRB) will be released at the end of January, setting the administration’s priorities and proposed funding levels for FY27.  

After the operating budget is published, DANA will hold its annual budget review in early February to learn more about the GRB and the governor’s budget priorities. The Joint Finance Committee (JFC) will hold its public budget hearings from February through March, reviewing each agency’s request, considering stakeholder testimony, and making funding decisions that shape the final state operating budget. 

This period is crucial for nonprofits, as it provides another opportunity through written comments, public testimony, and direct engagement, to advocate for rate adjustments, contracting reforms, and investments that strengthen Delaware’s nonprofit sector. 

How Can You Be Involved 
The budget process provides multiple opportunities for both in-person and written public comment. OMB budget hearings conclude on Thursday, November 20. You can find the public hearing calendar by clicking here. You can find the presentation of each department by clicking here. You can watch the hearings virtually on Zoom by navigating to the public calendar here and selecting the hearing on the corresponding date.  

If you would like to testify at any of the remaining hearings, you can do so either publicly or via zoom. Three minutes are being allotted for public comment. If you would like to submit written comments, you must submit it to this email: [email protected].