DOVER, Del. - Delaware Gov. Jack Markell's $3.54 billion operating budget proposal for the next fiscal year includes additional spending for Medicaid and schools but calls for no tax or fee increases.

The budget, proposed by the Democratic governor on Thursday, represents an increase of 1 percent over this year's operating budget.

"It's about investing in jobs, it's about investing in schools, and it's about governing responsibly," Markell said.

The biggest single addition to the budget is $27 million in new spending for school staffing, previously funded with federal stimulus money that is now no longer available, administration officials said.

Markell also is recommending about $22 million in additional spending for Medicaid to meet enrollment growth in the government health care program for the poor. Officials expect an additional 20,000 people to be added to the state's Medicaid rolls, bringing the total to about 234,000.