The Crisis in Education Requires Our Attention

By: Nancy Mercante, Guest Contributor

Our moral obligation to the children is clear: we must nurture and educate them well. It’s time to apply this commitment to all children by fixing the failures of our public education system.

All children have a right to get a good education. It requires close teamwork among parents, teachers and students. Parents are solely responsible for the education and upbringing of their children in four areas: spiritual, moral, health and academic motivation. Teachers provide students with instruction in reading, writing, math, and critical thinking that enables children to achieve their full potential as productive members of society. Together, parents and educators should teach young people how to become good citizens who can think for themselves and make morally and socially wise decisions.

 Too many children who attend K-12 public schools in Delaware enter adulthood unprepared to lead successful lives. For decades Delaware public schools have failed to provide all children with an adequate education in a safe, caring environment supported by involved parents.

Many factors contribute to this sad situation. The most obvious one is the crowding out of emphasis on the basics: reading, writing and math. Leading causes are inefficient bureaucracy, ideological interference, and the influence of social media, both in and out of the classroom. We rely too much on teachers to manage and resolve long-standing social issues from within the classroom, limiting their time and ability to teach core subject matter in a controlled and predictable environment.

Despite spending an average of $20,000 per student in 2023 according to the Delaware Department of Education, children are promoted through the system without achieving grade level proficiency in the basic knowledge needed to prosper in life.

While Delaware spending on public schools is near the top in the nation, the National Assessment of Educational Progress (NAEP) ranks Delaware students near the bottom in ability to master core subjects:

• 47^th in fourth grade reading
• 48^th in sixth grade reading
• 45^th in eighth grade math and reading

This means that about seven of ten Delaware public school students graduate without the skills they need in these core subjects.

For minority students, it’s much worse. In at least 17 schools with mostly minority students, fewer than one in ten students can read or do math at grade level. Research tells us that if children can’t read at grade level by third grade, they rarely recover. Instead, they get trapped in a system where they never catch up. This gives rise to a lifetime of underperformance that often leads to poverty, crime, drugs and even prison.

In short, the decline in Delaware’s public education system is devastating for these students, our communities and our state.

Public pressure could bring more change, but our voices aren’t loud enough yet. The general apathy about this situation is shocking. Many parents may think their kids are doing well because they get passing grades at school. Some parents are too busy working two jobs to make ends meet. Many others may simply lack the motivation or knowledge to help their own children.

Many parents are unaware that public-school districts actively promote ideologies that conflict with and undermine their own moral values.  Parents, citizens and organizations must unite to constantly reinforce the power of faith and the principles of hard work, resilience, and integrity upon which our nation was founded.

Whatever the reason for such apathy, we must change it and recognize the moral imperative to educate all children. Nothing will get better until parents and the public at large become aware of the true state of public education in Delaware and demand better. You can contribute immensely by leading an effort to promote a CAMPAIGN OF AWARENESS as a starting point to motivate people to act. We must accept responsibility for the education of all children.

Now is the time to commit to improving education to put all children within reach of the potential each and every one of them has been given.

Nancy Mercante had a career in corporate communications for major companies in the financial, pharmaceutical and telecommunications industries. She founded Citizens for Delaware Schools, a nonpartisan nonprofit, two years ago to advocate for a better education for every student in Delaware.

Pathways to Success: Careers in Delaware’s Construction Industry

By: Guest Contributor, Edward Capodanno, President, Associated Builders and Contractors, Delaware

Associated Builders and Contractors, Delaware Chapter is an organization that represents the Construction Industry – a lifeblood of Delaware’s economy and one that for years has driven economic growth in the state and nationally. The industry provides a direct pathway to personal prosperity and the ability to earn a high-quality living without the burden of excessive college debt.

This is a message our association and our members try to communicate daily.  We feel that, when effectively communicated, it inspires individuals and their families to be even more focused on their opportunities for future success.

Nationally, the average age of a construction worker is 47 and for every five people leaving our industry, just one is entering.  At this rate, and over the next three years, the shortage of new workers could stall Delaware’s economic engine that is now restarting.

As an improving economy, supported a renewed focus on thoughtful economic development creates new opportunities in Delaware, the need for well-trained, certified, skilled workers become more important.

The opportunities that are available to new workers entering the industry is immense.  The following careers and numbers shown below are average annual salaries and do not include overtime, company incentives or benefits:

Boilermakers – $58,856

Carpenter – $54,157

Electrician – $57,741

Heavy Equipment Operator – $61,091

HVAC Technician- $42,026

Plumber – $51,830

Mason – $54,860

Pipefitter – $59,558

All of these opportunities and more are available to Delawareans who are willing to make a career commitment to the industry. This is truly a pathway to a good life and the opportunity to begin a career without the burden of debt.

A quick look at industry statistics, updated quarterly, shows that in Delaware alone there are over 10,000 positions awaiting workers representing more than 20 skilled trades. While antiquated regulations and land use restrictions are factors in the shortage of affordable housing in Delaware, this lack of capable and skilled trades workers has more of an impact than other causes. And, as the crisis grows, affordable housing is an issue that is getting more attention by policymakers.

ABC Delaware stands committed to developing the construction workforce of tomorrow.  In fact, we, along with a broader group of interested leaders, are meeting regularly with Delaware educational leadership to help shape a new direction, redefine curriculum, and build a digital campaign designed to help Delaware students and their parents better understand the multitude of opportunities provided by the construction industry.

Edward J. Capodanno has served as President of Associated Builders and Contractors, Delaware Chapter and the Construction Education Foundation of Delaware since 1993. Ed also serves on a number of governmental task forces, including the Delaware Workforce Investment Board, and Governor’s Workers’ Compensation Oversight Panel. He previously served on the Governor’s Procurement Council, the Governor’s Prevailing Wage task force, the Department of Education School Construction Committee, Delaware Blue Collar Jobs task force and the New Castle County Vocational School District mentoring program. He has received numerous community and civic awards and recognition for his service.

Unlocking Delaware’s Potential: The Case for Tax Reform

By: Jane Brady, Chair, A Better Delaware

The Governor recently signed a number of bills passed by the Delaware General Assembly to help, in their view, with increasing the rate of home ownership in our state. Included in the package were an incentive program to create and expand workforce housing, elimination of the expiration of the mortgage mediation and foreclosure prevention programs and excuse from certain, limited purchases from a particular state transfer tax for contractors.  General home buyers and sellers are still required to pay the most expensive realty transfer tax in the nation, however, 4%. That means that for every hundred dollars you pay for a home, $4 is taken for the transfer tax. While it is often split between seller and buyer, as negotiated, that translates to a tax of $12,000 for a house costing $300,000.  We would have been well served if the General Assembly had reduced that tax. It stifles the economy. It discourages people who would like to relocate or seniors who would like to downsize, from doing so, as they are required to pay twice – once to sell, and then again to buy.

But transfer taxes are not the only way government reaching into the till is affecting Delaware.

We have written here on many occasions that our General Assembly should repeal our gross receipts tax. Perhaps some explanation of why we are so adamant would be helpful. Gross receipts taxes are an archaic idea that started, according to reports, in the 13^th century.  Delaware remains one of only seven states to retain a state gross receipts tax.  Most states have abandoned them for good reason. These taxes are on the money businesses receive from sales, before accounting for any of their costs for staff, materials, rent and other business expenses. They take money away that might be spent on expanding a business or adding a new product or service. For businesses with narrow profit margins, such as the mom-and-pop stores, or the new entrepreneur, it can eliminate most or in some instances, all of the profit, even jeopardizing the owners’ own compensation.  And, of course, these taxes add to the costs of products and services to you, the customer.  Delaware should repeal the gross receipts tax.

Delaware has seen an outmigration of talent over many years now. Bringing new business and keeping businesses that provide high paying, technical and manufacturing jobs should be a priority. It has not been. Whether in the bioscience area, the manufacture of alternative energy source components or chip and computer manufacturing and development, we should expand options in Delaware. We need to keep our citizens with skilled and bright young minds here in Delaware and attract new and competitive skilled workers to our state.  Corporate income taxes impact our ability to do so.  Research continuously shows that taxes are a factor in a state’s ability to attract and keep business.  Our corporate tax rate is one of the highest in the country (we are ranked No. 7 by the Tax Foundation).  Studies demonstrate that high taxes reduce investment in new and improved technology, impact efficiency, and result in lower wages, or fewer increases in wages, for employees. Freedom from a high tax burden allows businesses the freedom to grow, innovate and thrive.  We should reduce our corporate tax rate.

The American Legislative Exchange Council ranks Delaware 30^th of the states in economic outlook. Our tax rates are a component of that rating. Lack of innovation and imagination of what Delaware could be, what opportunities we could offer, what exciting challenges we could give to the talent and skill we have right now in our schools and universities, is holding us back.  Let’s unleash that talent and turn potential into production.

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.

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Why Does the State Energy Plan Sound So Familiar?

By: Dr. David R. Legates, Advisory Board Member, A Better Delaware

Recently, the State’s new five-year energy plan has been made available for a second round of feedback. A new energy plan is due this year; after all, it has been five years since the last one was implemented.

Five-year plans will sound familiar to those of you that remember the old Soviet “five-year plans for the development of the national economy of the Union of Soviet Socialist Republics.”  Other communist nations such as the People’s Republic of China also adopted five-year plans.

The proposed five-year plan for the development of the state economy of Delaware focuses heavily on a transition to so-called renewable energy.  This requirement was legislated by HB99 through its goal of achieving zero greenhouse gas emissions by 2050.  The five-year plan also establishes an offshore wind procurement program to facilitate this net-zero transition.  This plan will extend through 2029, just in time to see the state achieve its preliminary goal of reducing its greenhouse gas emissions by one-half by 2030.

While the plan calls for a myriad of things to address climate change, none of them are new concepts.  For example, the plan pushes for getting the public to adopt electric vehicles and to restrict the purchase of vehicles that run on fossil fuels.  Transportation is the largest sector that uses energy (more than one-third) and thus converting transportation to batteries is essential to meeting the 2030 goal set by HB99.

Moreover, this transition will necessarily reduce funds to the state arising from motor fuel taxes.  Consequently, the state’s five-year plan calls for the development of a revised fee structure to extract taxes from owners of zero-emission vehicles.  After all, state revenue cannot be sacrificed at the altar of green energy.

Other objectives established by the five-year plan include the transition to biodiesel and other sources of energy that will limit our food supply and make it even more expensive to feed our families.  Taxpayer funds also will be earmarked to facilitate the transition to so-called renewable energy sources.  After all, this transition will not come cheaply.

The plan also puts environmental justice and energy equity front and center.  Note that wind and solar are neither ‘clean’ nor ‘green’ as the mining and production of the components required to manufacture the wind turbines, solar panels, and batteries necessary to facilitate this transition is associated with child exploitation, slavery, land destruction, and the creation of toxic lakes.  Consequently, the transition to wind and solar energy necessarily harms people and children in developing and under-developed countries.  If one is truly concerned about environmental justice, why does the plan favor energy sources that harm poor countries through the creation of hazardous waste, the extraction of the requisite rare-earth minerals, and degradation of land uses from which they, and especially their children, clearly do not benefit?

Of course, the plan will achieve energy equity by making energy so expensive, few will be able to afford it.  The legislature set this process in motion and the administration, through DNREC, are all too willing to implement it.  This plan must be derailed if Delaware is to remain a great place to live.

Dr. David R. Legates is an Emeritus Professor at the University of Delaware and is the Director of Research and Education at the Cornwall Alliance for the Stewardship of Creation.  He also is an Advisory Board Member of A Better Delaware.

The True Price of Delaware’s Tax Policies: Impact on Residents and Businesses

By: Jane Brady, Chair, A Better Delaware

 This is the next in a series of articles that will take a look at how the policy principles and legislative priorities of A Better Delaware fared in the last legislative session, which ended on June 30.  We have written over several years now about our perspective on healthcare, education, energy, the economy and workforce in Delaware, as well as the need for more accountability and better transparency in the way government works in Delaware. 

In this series, we will look at how the action the legislature took promotes or inhibits achievement of those policy objectives we feel are important to make Delaware a better place for families, workers, businesses and the community at large.

Fiscal and Tax Policy

Many Delawareans are feeling the pinch in their pocketbook. “Luxuries”, like dining out, are falling by the wayside as people struggle to find the money to buy necessities.  Many of you might blame inflation, and that is certainly a significant reason, but in Delaware, it is also our taxes, and the burden our state’s tax policy puts on individuals and businesses.

The American Legislative and Exchange Council (ALRC) conducted a review to evaluate the tax burden on individuals and businesses in all 50 states. Delaware ranked #1, of course, when it came to sales taxes, because we don’t have one. And we did fairly well with regard to the property tax burden (we will have to wait to see how we fare after assessment, which is now occurring pursuant to court order).  Our top personal income tax and corporate income tax rates were ranked at 47, so, high as compared to other states.  But the real kicker? We ranked 50^th, yes, last (worst) for “remaining tax burden”. What is “remaining tax burden”?  Mostly state and Local taxes.  That could mean the tax you pay to transfer title to your car, boat or mobile home, property transfer taxes, gross receipts taxes, and the many other hidden taxes you pay to do business with the state or local government.

Many states have acted to relieve their citizens of tax burdens. Since the pandemic, more than 30 states have enacted reductions in their individual income tax rates, six of them just this year. Others have reduced their franchise taxes or capped property taxes.  We have argued that Delaware needs to reduce or eliminate property transfer taxes, gross receipts taxes and personal and corporate income taxes – taxes that take real money from hardworking moms, pops and students in our state. Sadly, Delaware’s General Assembly and Governor have failed to act, and despite our reputation as a tax-free state, we are anything but.  These reforms remain among our priorities.

Why should the high corporate tax rates or the gross receipts tax matter to you, an individual taxpayer in Delaware? Well, the gross receipts tax makes everything cost more – nearly everything you buy. It is a tax on the total the owner of the business takes in, and then, when they make money after expenses, the amount they take home from their business is taxed again. So, it is, literally, a sales tax by another name.

As for the corporate tax rates, the market is much more competitive today than it used to be, to attract businesses to incorporate and do business in a state.  Tax rates are a significant consideration in making that decision.  Delaware receives more than $1 billion each year from businesses that choose to incorporate here, reflecting filing fees, formation fees and franchise taxes.  The loss of that income would present a difficult challenge to those managing our state budget.  We are ranked just three states from the bottom on this metric. The legislature and Governor should act to reduce these taxes.

But taxes aren’t the only factor that can discourage companies from locating in Delaware.  The legal climate can be a factor as well. In this regard, the legislature enacted two bills that will affect corporate decision making.

The first established a government appointed panel that will oversee the finances and decision making of private and non-profit businesses.  The immediate focus was on hospitals and the intent was to reduce the amount the state pays for healthcare for its employees and retirees.  Based on comments from legislators, that is only the first category of businesses and non-profits to be targeted. We have previously opined that this step could further reduce the desirability of incorporating in Delaware and jeopardize our revenue stream.  An update on that legislation: although the hospitals negotiated some changes and stood back as the bill passed, Christiana Care has now filed to have the bill invalidated.  We will keep our readers informed as that case progresses.

The second is a bill that changes the extent to which restrictions may be placed on the decision-making of a corporate board of directors by a shareholder without a vote of the other shareholders. The bill was in response to a decision of the Court of Chancery upholding a challenge by a minority shareholder to specific veto and approval authority a shareholder/founder wanted to retain and reverses the Court’s ruling.  While the impact remains to be seen, that is precisely the issue. Our legal climate, always held to be the best in providing certainty for business ventures, is now being challenged by an activist General Assembly. That, coupled with the response by at least one high profile business (think Elon Musk) to relocate from Delaware, also in response to a court decision, could lead to hesitancy by other businesses to incorporate here. Again, we will monitor the legal landscape and bring updates as appropriate to our readers.

You may be aware that the Unemployment Insurance Fund recently reported that significant funds were embezzled and that the systems used in processing claims were so corrupted that a proper audit of the agency’s handling of funds could not be completed.  This session, the legislature did two things to help begin improvements at that agency.  First, they approved a change in the “benefits wage ratio methodology” that will ease determinations of benefits.  Second, they authorized a recurring and ongoing review of criminal arrests by staff with both the state and federal law enforcement databases. Previously a criminal background check was done only at hiring.  Such a system would have alerted the agency that the staff member allegedly involved in the embezzlement was arrested for theft outside of work while employed there.  Remarkably, the legislation does not apply to all state agencies.  It should.  A previous situation involving Delaware State University’s police department revealed that several members had adverse law enforcement contact while employed there. While that situation was resolved internally and by policy, every state agency should ensure all staff are in compliance with criminal laws.

In sum, the actions by the General Assembly have an impact on our economy. They should consider the big picture, enact laws that ensure continued dominance in the corporate world, create economic incentives for businesses to locate here and implement tax structures for them to thrive here. They should relieve our citizens of their tax burden.  And they should always remember whose money it is that they are spending – yours and mine!

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.

Beyond the Budget: Seeking Solutions in Delaware’s Education System

By: Jane Brady, Chair, A Better Delaware

 This is the third in a series of articles that will take a look at how the policy principles and legislative priorities of A Better Delaware fared in the last legislative session, which ended on June 30.  We have written over several years now about our perspective on healthcare, education, energy, the economy and workforce in Delaware, as well as the need for more accountability and better transparency in the way government works in Delaware. 

In this series, we will look at how the action the legislature took promotes or inhibits achievement of those policy objectives we feel are important to make Delaware a better place for families, workers, businesses and the community at large.

Education Policy

You may already know all the numbers. Delaware is in the top ten in spending on education, and the bottom five in student performance.  We have over a dozen schools with single digit proficiencies in math and reading, most of them minority majority.  Delaware spends over $20,000 per student per year, according to the latest figures from the Department of Education.  There has been an inverse correlation between increases in spending and lower achievement scores – as spending has gone up, performance has gone down.  The Governor just recommended, and the General Assembly passed, a budget that increases spending in education significantly, and includes $3 million for “literacy specialists,” who will teach teachers how to teach reading.

So, what is the good news? Well, there really is a science to teaching reading, and many new teachers were never taught how to teach it the way you probably learned – phonics is the key.  So, we commend the attention to reading. After all, if you can’t read, you can’t learn.  But, once again, the Governor and legislature came up short. They did not provide specific goals for everyone – students, teachers and parents to reach – proficiency in reading at grade level by grade 3. That has proven to be the “secret” to success in Mississippi, a state that performed miserably for decades, but instituted a law that students cannot earn that moniker “4^th grader” until they can read at a third-grade level. Mississippi, 6 or so years later, bests us by a mile. We need to establish goals and consequences in order to make change.  Just “teaching children to read” has failed Delaware students for some time now.

We had the opportunity to address some of the issues and bring transparency to the failings of these schools in the last General Assembly session.  The bill, HB 192 was proffered to require these poorly performing schools to present both short- and long-term plans to improve student performance to the Department of Education, and for the Department to issue an annual report on improvement (or the lack thereof).  While it passed in the House last year, and successfully passed through both the House and Senate Education Committees with bipartisan support, it has now stalled in the Senate.  Fearing that the bill will be a step toward school choice, the majority refused to bring it to a vote.

How arrogant! Because the other good news is that there are schools in Delaware that are succeeding. They just, mostly, are not public schools. You may have read in our previous newsletters that we at A Better Delaware support school choice, to give the poor students who are assigned to these poorly performing schools by a government that does not seem to be able to get the job done, a choice.  Other jurisdictions which have tried a choice program, enabling students to attend a private or parochial school of their choice, have seen remarkable gains in student success. And, we have proposed ways to offer choice without taking money out of the public schools. Our current education system, bloated and ineffective, is consigning children who are required to attend poorly performing schools, solely by virtue of their zip code, to more difficult lives than any of them deserve.

We can improve education in Delaware, but it requires leadership that recognizes that more money is not the answer. Specific goals, consequences and rewards with respect to those goals, and more transparency and choice all will serve the children of Delaware better. Better job opportunities, better financial security and more personal satisfaction with their lives. The children of Delaware deserve that. The General Assembly should not stand in the way.

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.

The Reality of Delaware’s Unrealistic and Expensive Energy Mandates

By: Jane Brady, Chair, A Better Delaware

 This is the second in a series of articles that will take a look at how the policy principles and legislative priorities of A Better Delaware fared in the last legislative session, which ended on June 30.  We have written over several years now about our perspective on healthcare, education, energy, the economy and workforce in Delaware, as well as the need for more accountability and better transparency in the way government works in Delaware. 

In this series, we will look at how the action the legislature took promotes or inhibits achievement of those policy objectives we feel are important to make Delaware a better place for families, workers, businesses and the community at large.

Energy Policy

Delaware’s government has made decisions in successive sessions with regard to energy that impact the poorest of our citizens most negatively. Those families in our state that struggle with the costs of basic necessities, such as food and housing, are now going to face additional costs for electricity and transportation.

The electric vehicle mandate which the General Assembly enacted would require families to pay about $10-20,000 more for a car that is electric than they would for a gas fueled car.  The cost of installation of a charger at your home is significant. But, of course, if you live, as many lower income people do, in an apartment or row home in the city, you won’t be able to charge your electric car at home. Additionally, there are very few public places you can do so.  Public transportation is limited, and not a realistic option for many to use to get to work or the store.   So, apart from the fact that we at A Better Delaware don’t think government should tell us what kind of car to buy, the impacts of this policy have been underappreciated.

And many of the wealthier among us who purchased an electric vehicle are having second thoughts. Why? Because electric vehicles lack the range, safety and ease of refueling that makes getting from here to there comfortable and reliable. The realities of the limited range, costs, safety concerns and lack of reliability are hitting home, and they are returning to gas powered cars.

But government is not learning any lessons from their experience, or others.  Recently, the Delaware legislature passed legislation that would mandate conversion of school buses from gas to electric.  They should learn from other school districts’ experiences. Just in March, it was reported that 20% of the entire fleet of electric school buses was not operating on any given day, according to the Director of the New York Association for Public Transportation, because of problems with the electric buses or their charging devices. Compare that breakdown rate with diesel buses which have a failure rate of 1 or 2%, and it’s easy to see that diesel is more reliable. More cost effective, too. The average cost for a diesel school bus is reportedly between $100-150,000.  Electric school buses cost between $3-400,000.  And that lack of reliability may also affect our poorest students, many of whom already have school attendance issues. Absenteeism is an increasing problem, exacerbated by the lack of stewardship in the delivery of education resources to Delaware students during the pandemic. Many of the poorest students rely on a bus to go to school. Reliable transportation is a necessity -they don’t have the independent means to provide their own transportation. The General Assembly needs to accept the reality that technology is not where they aspire it to be and until it is, they should spend our limited tax dollars responsibly, providing the most good to the greatest number of Delawareans.

But electric vehicles aren’t the only failed energy policy objective that is unrealistic and expensive. This past session the General Assembly passed the Delaware Energy Solutions Act that prioritizes procurement of offshore wind energy. Offshore wind is an intermittent energy source. That means it is not available all the time.  Any energy policy that relies on wind, or solar for that matter, must have provisions for the gaps in reliability these sources inherently have.

Offshore wind is expensive. When the legislature previously passed a bill that would require 25% off all the electricity used in Delaware to come from renewable sources, wind and solar, they put a 3% cap on any increase that customers could be required to pay as a result.  Currently, according to an analysis by the Caesar Rodney Institute, the cost is twice that to customers. In the past, a Governor’s Working Group on Offshore Wind found that offshore wind was simply too expensive.  The costs of offshore wind have not gone down since then.  So, what can we expect if this policy is implemented in Delaware? Higher costs for electric, huge subsidies for companies willing to put your money on the line when they take the risky venture to try to produce electric in offshore turbine fields, and uncertainty that our electric will be reliably available in the heat and cold.  Not much of a bargain.

Finally, with regard to offshore wind. The public needs to know that the Governor has signed an agreement with a company that has a commitment to provide electricity from an offshore wind farm to Maryland. The agreement is not for electricity. The agreement is to allow the company to bring four huge conduits of cables from the wind turbines ashore in our state park at 3Rs Road.  Why? Because no town or government in Mary land would agree to let them come ashore there. But our environmental concerns do not stop at the ocean’s edge. They also plan to transmit the electricity the turbines generate through those same conduits, buried only 3-7 feet deep, under the inland bay to property they bought adjacent to the Indian River Power Plant. There are opportunities to be heard on this issue. To submit your comments, go to: Public Comment Protocols – DNREC (delaware.gov).

Exercise your right to be heard about you concerns about the environment in our state, the health of our inland bays, the integrity of our beaches, and question why we would be willing to do something to bring electric to Maryland customers that no one in Maryland was willing to do.

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.

From Transparency to Quality: A Better Path for Delaware’s Health

By: Jane Brady, Chair, A Better Delaware

This is the first in a series of articles that will take a look at how the policy principles and legislative priorities of A Better Delaware fared in the last legislative session, which ended on June 30.  We have written over several years now about our perspective on healthcare, education, energy, the economy and workforce in Delaware, as well as the need for more accountability and better transparency in the way government works in Delaware. 

In this series, we will look at how the action the legislature took promotes or inhibits achievement of those policy objectives we feel are important to make Delaware a better place for families, workers, businesses and the community at large.

Healthcare Policy

Our principles at A Better Delaware regarding healthcare include promoting more competition, assuring better billing transparency and eliminating the obstacles to quality of care and lower costs.

The primary healthcare focus of the General Assembly and the Carney administration in this past legislative session was the cost to the State. Two primary initiatives addressed the state’s cost to provide health care to employees and retirees.

The first was HB 350, which placed a panel of 5 persons, selected through a political process, in a position of oversight of hospital budgets. While initially opposed by every hospital in the state, ultimately, the bill was amended slightly, and the hospitals were silent. The bill passed.

There are serious issues with this approach. The impact of a legislature prepared to put a political panel in charge of finance decisions in a private or non-profit business cannot be understated. During session, legislators were discussing what other businesses contract with the state and whether a financial review of their profits and spending choices might be appropriate.  Imagine a builder bids on a project and a panel of political appointees ask, “This price is awful high. How much compensation did you take home last year?”

The Governor was squarely behind this bill but should have appreciated the chilling effect this will have on new businesses locating in Delaware. And, when over a third of our revenue depends on our corporate friendly business climate, that impact can affect all of state services.

The second issue was the initiative to thwart the Governor’s plan to move retirees to a Medicare Advantage Plan from the current state health care plan.  There was a loud and effective resistance, and the General Assembly responded with a bill to prevent such a move. The Governor vetoed the bill, and in a rare, bi-partisan moment, the General Assembly voted to override the veto.

There are real shortcomings to the State’s approach to health care costs.  Rather than take an overall perspective of what procedures the state is covering, what contributions the insured are making, and whether those contributions are fair and comparable to what privately insured individuals pay as a portion of their premiums to employer plans for instance, Governor Carney determined to use a sledgehammer on hospital budgets and force retirees into an alternative plan to the one the state already provided

There are so many options the Administration did not advance or consider. First, pass along increases in health care as they occur. State insured individuals have never paid comparably to private employees. Everyone knows costs go up, and expects to pay more for healthcare, like every other commodity. Waiting until there is a dire need and imposing a huge increase all at once is not responsible management.

Second, remove the need for a certificate of need (now called a Certificate of Public Review in Delaware), which studies have repeatedly shown increase the costs of, and limit access to, health care.  That law requires that some of the very people who provide health care services in Delaware approve new facilities and services by their competitors. Why wouldn’t that restrict competition and limit options? The result?  The very same procedures can cost 30% less in neighboring states, that have competition.

The State should enforce and expand the laws we already have in place requiring transparency in billing and allow for patients to choose who provides their MRI, knee replacement or heart surgery. Costs vary widely between providers right here in Delaware, but patients cannot easily find the costs. It is expected, if you buy a couch or beef roast, that you will know the cost before you seal the deal. But you don’t know what a procedure will cost you before you undergo it. That does not make sense, particularly when there are differences in price between qualified providers.  The State could cut health care costs by providing that information to its insureds.

Finally, the State should take responsibility for the choices it makes regarding what procedures to cover, and for what amount.  At the very same hearing at which nearly $700,000 was appropriated for the costs of establishing the hospital budget review panel, the Committee voted to expand coverage to include all abortion and related services and to eliminate all copays for all such services, thereby increasing, in one vote, the costs to the state for health care insurance. Without comment on the subject that was covered, the reality is that you cannot continue to expand coverage without increasing costs, yet they did not, while in the same breath, blaming the hospitals for the high costs to the state for health care.

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.

Unlocking Education Freedom: A Call for Real Choices

By: Jane Brady, Chair, A Better Delaware

This week we celebrate freedom. Freedom from the oversight of a King far away. Freedom of speech, religion and assembly, and the other freedoms protected in the bedrock of our nation, our Constitution.

But we can celebrate no such freedom in education.  There are restrictions on our freedoms in education, outdated and unnecessary, intruding restrictions.

Think about it. The government does not tell you where you have to get your car fixed, but they do tell you where you have to send your child to school. Imagine if the mechanic you were assigned didn’t have all the parts you needed and some were delayed, but eventually you leave the garage with a car that performs at 50%. Sadly, many of our kids graduating high school in Delaware are not performing in reading and math at even 50%.

And this is not a new situation. For at least a decade, the academic performance of Delaware students has been declining.  Are these students any more prepared for the long journey of their careers, their lives, than a car that is operating at 50%?  Clearly, the quality of the journey is compromised.

So, what are our options?  As a parent, an employer or a customer, we all have an interest in a confident community. A community in which everyone can realize their potential, give and contribute to the well-being of others and find personal satisfaction from their life.  A sound education provides the foundation to make those objectives a reality.

How can your child break free of this system that is not serving them well? Currently, there are a few options.  If you have the means, you can choose to send your child to a private or parochial school. If you have the time, energy and skill, you can home school your children.  If you are lucky, your child can be selected in a lottery and attend a charter school. And you can apply to get your child transferred to a different public school. SchoolchoiceDE.org has all the specifics.  Of course, the deadline to apply for the 2024-2025 school year expired on January 10, 2024, so if you want to choose a different public school through the current choice program, be sure to plan quite far ahead!

Are you satisfied with these choices? Probably not.  Do they really give you the freedom to assure your child gets the best education for them? Definitely not.

We at A Better Delaware believe that parents should have real choices about where to send their kids to school. And there is a way to provide choice – Opportunity Scholarships.  Although not currently available in Delaware, these scholarships are provided either by the State, directly to the student’s choice of school, or through donations to a scholarship fund by individuals and businesses who would receive a portion of the amount they donate as a credit against the taxes they owe the State.

Pennsylvania has such a program to which businesses can donate, and which provides, among other things, tens of millions of dollars to low- and middle-income families to attend the school of their choice.  The program is so popular, there is a waiting list to donate.

The sad reality is that there are nearly a dozen schools in Delaware with academic performance in the single digits. That means, out of 100 students, fewer than 10 can read or do math at grade level.  Yet, the Department of Education recently reported that the State spends an average of over $20,000 per public school student per year. Delaware is in the top 10 states in the nation in spending, and yet we are 4th from the bottom in student academic performance.

That is not acceptable. Clearly the current education system, with the alternatives currently available, is not working for the students of Delaware. They deserve better. Parents deserve the opportunity to provide a better education for their children. Delaware deserves a better prepared, work- ready community of educated young people.

We have tried to just spend more, repeatedly, and that is clearly not the answer. A new alternative, Opportunity Scholarships, is needed to give the children of Delaware their best chance at success, not only in school, but in life.

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.

Inspector General Will Bring Transparency to Delaware Government

By: Jane Brady, Chair, A Better Delaware

The operation of our state government can be complex, confusing, even overwhelming, if you are not directly involved in the day-to-day development and implementation of the expenditures. But there are some basic standards that government should meet in making sure the public is informed about the priorities of their leaders and the way the public’s funds are being spent.  Transparency and accountability are the hallmarks of a government of good integrity.

That is lacking in Delaware today.  Even with regard to how much money the state will spend this year, we are not getting the full story.  The Governor proposed a budget of about $8 million, and the Joint Finance Committee recently released an operating budget of $6.1 million. There are some capital expenditures and financial support for non-profits that will be added. But that is not the entire story.

You may have heard about the more than $4 billion dollars Delaware spent in surplus funds in the past three years, provided by the federal government, largely due to Covid funds.  But Covid did not begin the provision of federal supplements, and they will not end when the Covid funds run out (we are spending the last of them now). According to the National Association of State Budget Officers, Delaware actually spent between $7 and $10 billion more than our “budget” each year since 2019.

And recently we learned that we have not accounted for, or spent, all those funds wisely or appropriately.  Were you aware that nearly $200,000 was embezzled from our state unemployment insurance funds? Neither were the State Auditor or law enforcement.  For over a year, no information was provided by the agency about the loss.  The facts only surfaced when an auditing firm advised they could not perform an audit because the accounting of the funds was in such disarray

In its annual report, Truth In Accounting, which evaluates the 50 states’ financial transparency and scores each state, awarded Delaware 74 out of 100 points, and ranked our state 26th. The Report found that a factor in that ranking was failure to accurately state our assets and liabilities.

If we count on the government “players” to let us know what is going on, we will not learn the facts. We need to have an independent, non -partisan Office of Inspector General (OIG).  According to a report by WHYY, such a concept has been the subject of discussion since 2007.  Amid great fanfare, a bill was introduced to establish such an office. The bill stated that the “sole mission [will be] to investigate and prevent fraud, waste, mismanagement, corruption, and other abuse of governmental resources. The OIG will “protect the health and safety of Delaware residents, assist in the recovery of misspent or inappropriately paid funds, and strengthen government integrity and the public trust in government operations.” That bill has stalled.

You may think that the State Auditor would take care of finding the mismanagement abuse or fraud in the state agencies. After all, the mission of that Office is to provide evaluation of the state’s fiscal accountability and public program performance. But historically, there has been consistent reluctance to share information with our State Auditor when discrepancies are discovered Given that the agencies have not shared information as appropriate with the Auditor, an independent non-partisan position of Inspector General is needed in Delaware, which will have the ability to investigate and issue subpoenas for information relevant to their duties. We urge you to contact your legislator and tell them you want them to vote for SS1 for SB21, the Office of Inspector General.

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.