Delaware lawmakers move to codify budget advisory council after governor removes member for appearing to question his staff

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Top state legislators have proposed legislation to codify Delaware’s budget advisory council just weeks after Gov. Matt Meyer controversially removed one of its members after he publicly questioned data presented by administration officials.

The bipartisan bill would formally establish the Delaware Economic and Financial Advisory Council, which was created in 1977 by executive order under then-Gov. Pete du Pont. DEFAC has continued to operate under executive orders issued by successive governors and is currently operating under an order from former Gov. John Carney.

The council is made up of state lawmakers, agency heads, business professionals from the private sector and financial analysts who use revenue and expense data to forecast how much money the state will have to spend in the next fiscal year’s budget and to make projections for future years.

It’s unclear whether Meyer supports the legislation. A spokesperson said the governor supports DEFAC, but did not comment on the bill. Some lawmakers and sources familiar with discussions between lawmakers and Meyer’s office told WHYY News there has been strong disagreement between the administration and legislative leadership.

However, Senate President Pro Tem David Sokola, D-Newark, said a recent discussion between the parties had been productive.

“I feel like we were in a spot that was maybe not quite a consensus, but pretty darn close,” he said.

Sokola said lawmakers agreed to remove some provisions from the original draft. That reportedly included barring the governor from removing a member except for cause.

Questioning of corporate franchise tax revenue

DEFAC meetings usually only make news for the budget predictions the council makes five times a year.

But Meyer moved quickly to fire longtime DEFAC member and former chairman Michael Houghton after WHYY News reported on his questions about a lack of corporate franchise tax data during the March DEFAC meeting. The Meyer administration has been touting corporate incorporations in the state of Delaware, particularly since last year’s tax law overhaul.

“There’s been a lot of discussion about a surge and unprecedented streak of formation in 2025 going into 2026,” Houghton said during the meeting. “You would think that a $2.1 billion revenue stream would begin to play through and evidence itself.”

The corporate franchise tax accounts for nearly a third of Delaware’s budget and is the state’s second-largest source of revenue, after personal income tax. Meyer and administration officials have said it has been the norm for years to not present corporate franchise tax data at the March meeting.

Two days after WHYY News’ story, Houghton received an email from Meyer notifying him of his termination. Several lawmakers, including Sokola, voiced concern that the firing was political retribution, which the governor has denied.

On WHYY’s and Delaware Public Media’s “Ask Governor Meyer” show last month, Meyer said that he kept Houghton on the council after taking office in 2025 for continuity, but it was time to put someone else into place.

“We said, just for the sake of our state, let’s get new blood on there,” he said.

The governor has since appointed Brenda Wise, CSC corporate counsel and director of global government affairs, to the council.

The legislation would protect the structure of DEFAC

Leaders of both parties in the General Assembly say putting the framework of DEFAC into law would send the message to those inside and outside the state that Delaware remains committed to financial responsibility and stability.

“DEFAC is so important to us that we want to make sure that there are no changes as far as whether it continues on or not,” said House Majority Leader Kerri Evelyn Harris, D-Dover.

House Minority Leader Tim Dukes, R-Laurel, said the recent controversy provided the impetus for the legislation.

“We just felt like there was a real need to protect it,” he said. “And regardless of who the governor is, we have a responsibility to protect DEFAC for future General Assemblies, way beyond my tenure here.”

Named the “DuPont-Cook Financial Responsibility Act,” the bill would basically maintain the council’s existing configuration. DEFAC must consist of at least 25 members, but no more than 34. There are currently 33 people on the panel.

Under the proposal, the governor would appoint no fewer than 12 members and no more than 21.

The General Assembly would keep its four members on the council — two from the Senate and two from the House. And certain administration staff, including the secretary of finance, secretary of state and Office of Management and Budget director, as well as the head legislative budget writers, would automatically be considered council members. It also formally establishes the DEFAC Healthcare Spending Benchmark Subcommittee.

The bill is expected to be heard before a House committee Wednesday.