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Money Is Not the Answer

 By: Jane Brady, Chair, A Better Delaware

There was a big meeting, actually a rally, this week, regarding funding Delaware’s schools. It was only one of many meetings lately about how we fund schools, where the dollars should go, what formulas to use to allocate the funds.

The ideas flow faster than the dollars – but most suggest that if we just spend more money, we will get better results.  Sadly, that approach has been advocated for about three decades now, and with little to show. Add money to the budgets of schools where students’ needs are most severe. Change from an allocation based on students assigned to a school to one based on need.  Pay teachers more money. Pay paraprofessionals more money. Add specialized trainers to the mix. Our spending on education now tops one third of our state budget, and our students perform worse than those in more than 40 of the states in the entire country.

But what are the numbers? What has been the result of all this increased spending? This year’s results are in. 42% of Delaware students between third and eighth grade are proficient in English. 35% of those same students are proficient in Math.  Math proficiency of high school students in Math was a dismal 18% for the third straight year.  A distinction without a difference. Moving the chairs on the Titanic. Ineffective. Unacceptable.

Remarkably, but in all fairness, these numbers do represent some modest improvements.  Very modest. Barely improvement. But why are the scores so low to begin with? Because our focus is not toward accountability and results.

It is no secret that Mississippi found the key to improving student performance – teach children to read by third grade. Wallowing last or nearly so for decades, when the state changed its perspective and priorities, their students rose to surpass Delaware students by a mile in performance. All they did was make it mandatory that students learn to read at third grade level before progressing to fourth grade.  Suddenly, every student in third grade had a plan, an objective, that everyone was aware of and worked to achieve -the teachers, the parents and the students themselves shared a common goal – learn to read before third grade year was over. And most of them achieved it. Because there were clear expectations, clear objectives and…no one wanted that student to fail.

Delaware leaders are aware of this – the current and former Governor, members of the General Assembly, the leaders in the teachers’ union. Yet, there has been no response to the call to implement the concept that Mississippi and other states have proven works.

In Delaware, we “teach students to read.” We always have in our schools. We just haven’t done a very job of it. To know that there is something we can do, and not do it, is unforgivable.  The lives of those students in Mississippi and other states who learned to read are changed forever. New possibilities for success – in business, nursing, technology and even teaching – are in their futures. But for students who cannot read, the future is dismal. Every person, parent, teacher, leader in Delaware should feel an obligation to make a difference in the lives of the youth in our state. When it is known what can make that difference happen, our obligation is to implement the changes that make happy, profitable and rewarding futures possible for Delaware students.

As I said to a school board one evening, “When was the last time your child brought home a 50% and you were happy?” Of course, none of them could relate to a student, their student, bringing home 50% on an assignment, But, if your school district is hovering at 42% proficiency in reading, more than 50% of the students are performing at less than 50% proficiency.

The recent numbers also reflected a significant difference by race and ethnicity in proficiency.  Sadly, African American and Hispanic students scored relatively equivalent to each other, but far lower than White and Asian students.  Similarly, low-income students performed lower than those from higher economic brackets. But, after Mississippi’s experience, there can be no more excuses from the establishment that would justify the failure to educate lower income, minority students well.  Mississippi is, unarguably, the poorest and brownest state in the country and their kids are beating the pants off ours. It is time for accountability. It is time to put the students first. And it is time to use our funds to create the real opportunity for success for Delaware’s students – teach them to read!

Jane Brady serves as Chair of A Better Delaware. She previously served as Attorney General of Delaware and as a Judge of the Delaware Superior Court.

What Economic Freedom Means for Delaware Families

By: Kathleen Rutherford, Guest Contributor

Economic freedom can sound like a subject for economists. For Delawareans, it connects to familiar concerns: how much of a paycheck is left after taxes, whether a business can afford to hire, and how quickly new homes can be built. These conditions help determine whether Delaware is an affordable place to live and an attractive place to do business.

The Cato Institute’s Freedom in the 50 States report, which measures economic freedom, estimates Delaware’s overall tax burden at about 12.7% of adjusted personal income—above the national average—and ranks the state 44th overall for economic freedom.

Taxes help pay for public services. They also affect how much money remains for groceries, housing, savings and business growth. Competitiveness involves both sides of that equation: what government collects and what residents receive in return.

The cost of waiting

Consider a business ready to expand or a builder planning new housing. Before work begins, approvals can take months. In announcing its February 2026 permitting reforms, Delaware’s administration acknowledged that state reviews had often taken 18–24 months or longer, raising costs and discouraging investment. For residents, those delays can mean waiting longer for housing and needed infrastructure.

The state’s Permitting Accelerator aims to coordinate reviews and provide clearer timelines while keeping safety and environmental protections. Its practical value will depend on whether projects move forward more predictably. Faster decisions can help businesses plan hiring and investment with greater confidence.

Rules also affect who can work here. On August 20, Governor Meyer ordered a review of at least five licensing boards to identify unnecessary employment barriers. Recommendations are due within 150 days. The order itself does not change requirements in state law. Removing duplicative requirements could help qualified professionals enter Delaware’s workforce and give residents more service options.

What the results show

Education and healthcare matter to competitiveness because families and employers depend on both and because they represent nearly two-thirds of Delaware’s operating budget. In FY2027, public education accounts for 36% of state operating spending, while the Department of Health and Social Services accounts for nearly 28%. With roughly 64% of the state’s operating budget committed to these priorities, the results matter.

Delaware’s 2026 results show 42% proficiency in English and 35% in math for grades 3–8, each up one percentage point. Eleventh-grade SAT math proficiency remained at 18% for the third consecutive year. The gains are real, but the gaps matter for students preparing for work or college.

In its May 2026 report, Delaware found that health-care spending grew 8.7% statewide in 2024, nearly three times the state’s 3% benchmark and 5.7 percentage points above it. The report also identified five significant quality measures: Delaware exceeded only two—commercial breast-cancer screening and Medicaid colorectal-cancer screening—while missing targets for adult obesity, statin-therapy adherence and commercial cervical-cancer screening. That means just two of five specifically highlighted quality benchmarks were achieved, even as spending across all payers—not just state appropriations—rose sharply.

Delaware had the third-longest ER visit times among states—fourth including Washington, D.C.—in CMS data for the year ending September 2025. The measure covers total visits, including treatment. Primary care shortages create another access problem. These pressures strengthen the case for repealing Delaware’s certificate-of-need laws, known locally as Certificate of Public Review requirements. They require state approval for covered facilities and expansions, adding a hurdle for new healthcare investment. Repeal would remove that approval barrier and could enable more care options.

Delaware can move forward by focusing every public dollar on measurable results and removing barriers that stand between people and opportunity. That means helping students build stronger skills, expanding access to timely and affordable care, and making it easier for businesses to invest and hire—so Delawareans can learn, work, earn and afford to live here. When those opportunities grow, Delaware becomes more competitive and families feel the difference.

Kathleen Rutherford is a government relations and advocacy professional with experience in lobbying, public policy and strategic communications in Delaware and Washington, D.C.

 

 

Is Delaware Working for Small Business?

By: Kathleen Rutherford, Guest Contributor

Small businesses are not a small part of Delaware’s economy. They are its backbone.

Nearly 29,000 small businesses operate in Delaware, employing more than 250,000 people—more than half of the state’s workforce, according to the Delaware Division of Small Business.

That makes the findings in the Delaware State Chamber of Commerce’s 2026 Competitiveness Bluebookparticularly important.

The Bluebook compares Delaware with other states across more than 60 measures of economic competitiveness. Delaware has important strengths, including its highly regarded judiciary, investment in research and development, and growing innovation economy. But several measures directly affecting small businesses should get policymakers’ attention.

The Cost of Doing Business Matters

Delaware ranks 43rd in the nation for business friendliness and 41st for the cost of doing business, according to the CNBC rankings highlighted in the Bluebook.

For a large corporation, additional costs or regulatory delays may be manageable. For a small business operating on tight margins, they can determine whether an owner hires another employee, expands, invests in new equipment—or decides not to grow at all.

That is why Delaware needs to continue asking a straightforward question: Are we making it easier or harder to start, operate and grow a business here?

Time Is a Cost, Too

Taxes aren’t the only expense businesses face. Time and uncertainty have a price.

Delaware’s permitting process is one clear example. In February, Governor Matt Meyer acknowledged that some state permitting processes can take 18 to 24 months or longer, increasing costs and putting Delaware at a competitive disadvantage.

The Governor’s creation of a Permitting Accelerator is an important recognition of the problem. Now Delaware needs measurable results.

How much have approval times declined? How many projects are moving faster? Are businesses experiencing greater predictability?

Streamlining government does not mean eliminating necessary safeguards. It means establishing clear requirements, coordinating agencies and reaching decisions within reasonable and predictable timelines.

Delaware Also Needs Workers

Small businesses cannot grow without people to fill the jobs they create.

Here, the Bluebook identifies another warning sign. Delaware’s labor-force participation rate declined from 62.27% in 2019 to 59.08% in August 2025—the lowest among neighboring Virginia, Maryland, New Jersey and Pennsylvania. The report also notes that Delaware is now the nation’s fourth-oldest state.

Workforce policy, therefore, cannot be separated from economic policy. Housing affordability, education and skills training, energy costs and quality of life all influence whether working-age people choose to build their careers and families here.

And when Delaware struggles to attract workers, small businesses feel it first.

Give Small Businesses Room to Grow

Delaware has considerable advantages. More than 2.28 million legal entities are incorporated or formed here, and more than two-thirds of Fortune 500 companies call Delaware their corporate home.

But being the legal home of American business should go hand-in-hand with being a great place to actually operate a business.

That means lowering unnecessary barriers, speeding up permitting, keeping the cost of doing business competitive and creating an environment where entrepreneurs have the confidence to invest and grow.

Delaware can do better.

The goal should not simply be improving a ranking. It should be creating a state where the person opening a restaurant, expanding a construction company, running a neighborhood retailer or launching the next Delaware startup has every opportunity to succeed.

Kathleen Rutherford is a government relations and advocacy professional with experience in lobbying, public policy and strategic communications in Delaware and Washington, D.C.

Delaware’s Housing Problem: Affordability Starts With Removing Barriers

By: Kathleen Rutherford, Guest Contributor

Housing affordability has become one of Delaware’s most pressing challenges. For renters and homeowners alike, the numbers tell the story: 50.3% of Delaware renter households and 22% of homeowner households were cost-burdened in 2024⁠, meaning they spent at least 30% of their household income on housing costs.

The question for policymakers should be straightforward: What is making housing so expensive — and what can government do to lower those costs rather than add to them?

The answer begins with supply.

Delaware Needs More Housing

When housing supply fails to keep pace with demand, affordability becomes increasingly difficult. But building new housing can be a lengthy and expensive process.

Delaware itself has acknowledged the problem. State permitting and regulatory reviews have often stretched 18 to 24 months or longer, increasing project costs, discouraging private investment and constraining housing supply⁠.

The state has begun addressing the problem through its Permitting Accelerator, designed to coordinate agency reviews and establish clearer timelines and accountability.

That is a promising direction. Delaware should continue looking for ways to make approvals faster, simpler and more predictable while maintaining appropriate health, safety and environmental protections.

Regulation Has a Price

Permitting delays are only part of the equation. Regulations imposed at every level of government can add significantly to the cost of producing housing.

A 2026 National Association of Home Builders study estimates that federal, state and local regulations add $131,734 to the price of an average new single-family home — 26.4% of its sales price⁠. That estimated regulatory cost has increased more than 40% since 2021.

A recent federal policy change offers another example. The U.S. Department of Housing and Urban Development revised guidance governing Fair Housing Act design-and-construction claims after reporting that the previous interpretation had resulted in more than $110 million in repair costs for building owners over the previous five years⁠.

The lesson for Delaware isn’t partisan. It’s economic.

Regulations can serve important purposes, but they also have costs. Policymakers should continually ask whether a regulation is achieving its intended purpose, whether that goal can be accomplished more efficiently, and how the rule ultimately affects the price and availability of housing.

Rent Control Doesn’t Build More Homes

When rents rise, limiting rent increases can sound like an immediate solution. But controlling prices does not itself create additional housing.

Takoma Park, Maryland, provides a useful case study. The city reports that 57% of its rental units are rent stabilized, while only 3% of its total housing stock was built after 2000⁠. A separate fiscal analysis prepared for the city reported no new multifamily housing developments in Takoma Park since the 1960s⁠.

That does not mean rent stabilization alone caused the lack of construction. Housing development is influenced by many factors. But it does demonstrate why Delaware should carefully examine how policies affect the incentive to build and invest before adopting them.

Long-term affordability requires increasing housing supply, not simply regulating its price.

Homeowners Need Predictability Too

Delaware’s affordability challenge isn’t limited to renters. More than one in five Delaware homeowner households are already considered housing cost-burdened⁠.

As Delaware continues navigating the effects of statewide property reassessment, transparency and predictability matter. Families making one of the largest financial commitments of their lives should have a reasonable ability to understand what owning that home will cost them in the years ahead.

A Better Path for Delaware

There is no single solution to Delaware’s housing affordability problem. But there is a clear direction: build more housing, streamline permitting, examine unnecessary regulatory costs, avoid policies that discourage new investment, and provide greater predictability for homeowners.

Every proposed housing policy should face a simple test:

Will this make it easier and less expensive to build, own or rent a home in Delaware — or will it make housing even more difficult to provide?

If Delaware wants housing to become more affordable, creating the conditions to build more of it is a good place to start.

 Housing policy should expand opportunity, encourage investment and make Delaware a more affordable place to call home.

Kathleen Rutherford is a government relations and advocacy professional with experience in lobbying, public policy and strategic communications in Delaware and Washington, D.C.