Paying for the services that Delawareans rely on is rarely as simple as it might seem. Schools are a great example of just how complex things can get.
No single stream of funding can cope with the many unique needs of the state’s school system, which runs on a head-spinning mix of revenue sources, each governed by different rules and used for different purposes. Together, those funding streams provide more than $2 billion annually for Delaware’s public K-12 system.
Money from three “budget buckets” — the state’s General Operating Budget, the Capital Budget (known as the Bond Bill), and Federal Funding — accounts for 70% of the funding for Delaware’s 19 school districts. The other 30% is paid for by property taxes at the county level.
Understanding how all those pieces fit together helps explain why education consistently represents Delaware’s largest public investment — and why budget debates often focus not just on how much is spent, but which bucket the money comes from and what it can legally fund.
State Operating Budget
The single largest source of education funding comes from this bucket. In Fiscal Year 2025, Delaware’s operating budget totaled approximately $6.6 billion, with over $1.8 billion — nearly 29% of all state operating spending — allocated to K-12 public education.
Capital Funding Through Bond Bill
Under Delaware’s FY 2025 Capital Improvements Act, the state authorized approximately
EXPLORE MORE
- 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.
$238.8 million for K-12 public school projects. These funds are restricted to long-term investments such as construction, renovations, and technology upgrades.
Local Property Taxes
Local school districts contribute an estimated $500 million-$550 million annually, primarily through property taxes approved by voters, representing about 25% of total public education spending.
Federal Education Funding
The federal government provides approximately $250 million-$300 million each year in ongoing education aid, accounting for about 10% to 12% of total K-12 funding. One-time COVID-19 relief funds are no longer part of the ongoing budget.
What the Totals Show
When combined, the four funding buckets produce a total annual investment of roughly $2.1 billion-$2.2 billion in Delaware’s public K-12 education system.
Delaware Public K-12 Education Funding Overview (FY 2025)
| Funding Source | Approximate Amount | Share of Total | Primary Use |
| State Operating Budget | $1.76 billion | ~65% | Salaries, instruction, transportation, operations |
| State Bond Bill (Capital Budget) | $238.8 million | Capital only | Construction, renovations, infrastructure |
| Local School Districts | $500–550 million | ~25% | Local staffing and programs |
| Federal Government | $250–300 million | ~10–12% | Targeted programs, meals, special education |
| Total Public K-12 Funding | ~$2.1–2.2 billion | 100% | All public school funding |
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.
