When Delaware considers a major new investment — like expanding early childhood education — the debate is not just about whether the project is important. It’s also about how the state chooses to pay for it.
As part of the Civics 101 series, this explainer outlines the three basic ways Delaware can fund any new initiative, using early childhood education as a real-world example.
Delaware already spends about $135 million a year on early childhood education through child-care subsidies and state-funded preschool. Even with that investment, experts say access
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- Keep your journey going at the Civics 101 homepage
- An introduction to the series
- Check out the handy Glossary of Terms
- Read what Delaware’s leaders have said about the budget
- PART 1: Dive into the “four buckets” of Delaware’s budget
- How the state budget is a lot like a family budget.
- PART 2: Where does the money come from?
- How Corporate Franchise powers the budget
- Delaware’s shifting revenue streams
- PART 3: Where the billions of dollars go.
remains limited and costs remain high for families and providers.
Efforts to significantly expand early childhood education — such as Gov. Matt Meyer’s Jan. 2026 proposal to beef up spending by $50 million a year — highlight the kinds of funding decisions lawmakers must make.
To pay for new initiatives like these, the state can reprioritize existing funds. This means shifting money already in the budget from one purpose to another. Choosing to invest more in early education could mean fewer dollars for teacher pay raises, a new reading curriculum in public schools, or programs that help seniors afford health care.
When she was a state senator, current Lt. Gov. Kyle Evans Gay used this approach to find $30 million in the budget for increased child care access.
“I worked with the administration through data reporting and budget oversight to identify $30 million to be reinvested into childcare at no cost to our taxpayers,” Gay said.
The state can also use one-time money or budget surpluses to get new initiatives off the ground. This can help start a program, but it does not guarantee funding in future years.
Third, the state can raise new revenue. This option can take several forms, including new or higher taxes and fees. Raising new revenue this way can provide stable, long-term funding, but it also shifts costs to employers, workers, or consumers — making it one of the most debated options in an age where consumers’ costs are rising.
In the case of Meyer’s early childhood education goals, the state would use a combination of new state revenue (cigarette and “vape” taxes), federal grants (which may prove temporary), and reallocated funds.
It’s an example of how even widely supported ideas can involve difficult trade-offs and lingering uncertainty for those who guide Delaware’s budget process.
About the Civics 101 Series: Civics 101 is a continuing explanatory series by Delaware LIVE and the Spotlight Delaware content marketing team designed to help readers understand how state government works and how budget decisions affect everyday life in Delaware. To read other stories in the series, visit the Civics 101 home page.
