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July 19, 2021 In In The News

Delaware Manufacturing Job Growth Opportunity

From: Charlie Copeland, Co-Director, Center for Analysis of Delaware’s Economy & Government Spending at Caesar Rodney Institute 

Delaware has suffered a 31% decline in high-paying manufacturing jobs over the last 18 years. With federal funds from Covid stimulus legislation and tweaks to the State’s site and business permitting process, Delaware could position itself for decades of manufacturing job growth.

The Situation today: Delaware, its counties, and several municipalities are set to receive an enormous amount of money from the Federal government’s pandemic-driven federal legislation. While one can argue whether these funds are necessary given the rapidly growing US economy, the money is coming.

 With this incoming cash, our local governments are now debating what to do with these funds. The proposals tend to reflect one end or the other of the adage, “Give someone a fish to eat today, or teach them to fish to eat for a lifetime.” But these proposals miss an important point… Are there even fish in the lake? In other words, are there high-paying skilled jobs in Delaware for our citizens? The answer to this question is increasingly “No.” Read more:https://www.caesarrodney.org/CRI-news/Delaware-Manufacturing-Job-Growth-Opportunity.htm

 

 

July 19, 2021 In In The News

Here’s list of $70 million in projects picked by legislators for their districts

From: Delaware Live The list of projects included in the Delaware General Assembly’s $70 million community redevelopment grants includes $2 million for a private school stadium, $1.6 million for the Delaware Agricultural Museum, and $1.35 million for the Nanticoke Indian Association.

Community redevelopment funds are one-time allocations that legislators earmark for nonprofits, schools, and community agencies in their districts.

The itemized list of recipients was not included in the Bond Bill when it was passed by the General Assembly and signed by Gov. John Carney.

Bond bill committee members offered assurances that the list would be made available to the public as soon as it was finished being collated by the Controller General’s office. It was posted Thursday on the General Assembly’s website.  Read more: https://delawarelive.com/heres-list-of-70-million-in-projects-picked-by-legislators-for-their-districts/

 

June 25, 2021 In In The News

Delaware’s 2022 operating budget clears House

From: Delaware Public Media

The 2022 budget is a $4.77 billion spending plan and more than 4.9% bigger than this year.

It passed in the House by a 38-1 vote with two not voting.

State Rep. Rich Collins (R-Millsboro) cast the lone ‘no’ vote while Mike Ramone (R-Pike Creek Valley) and Democrat John Kowalko (D-Newark South) were the two not voting.

Collins was the lone ‘no’ vote, arguing taxpayers should get some money back since the state has a huge surplus this year.

“We have raised taxes – the General Assembly – since 2009 quite a few times. We had several really tough years in there where we raised taxes when we needed revenue. Well, now we have the most historic revenue surplus that we’ve ever had, and we’re not giving any of it back to the taxpayers,” said Collins.

But Joint Finance Committee co-chair, State Rep. Bill Carson (D-Smyrna( says this budget has many items that will help Delawareans.

“$17.2 million to increase reimbursement for direct support professionals, $2.6 million for home-based nursing, $16 million for student medical health, $22 million in education opportunity funds, $10.2 million for the Redding Consortium, $4.3 million towards expansion of SEED and Inspire scholarships,” said Carson.

The House also unanimously passed one-time supplemental spending for FY 2022 that will appropriate just over $221 million for one-time funded projects like technology needs, a police body camera program, and salary supplements for state employees and pensions among many others. It also sets aside money to implement legalizing recreational marijuana should that bill pass.

Both bills still need Senate approval.

June 17, 2021 In In The News

Bill to lower income tax fails in committee, but one to cut real estate tax passes

From: Delaware Live

Two Republican bills designed to take advantage of Delaware’s flush revenues found different fates Wednesday in the House Revenue and Finance Committee, with one failing to gain traction and the other earning unanimous support.

The first was House Bill 191, introduced by Rep. Rich Collins, R-Millsboro, which sought to cut all personal income tax brackets by 10%, cut the corporate tax rate from 8.7% to 6.1% and the gross receipts tax by 50%. It fell one vote short of being passed to the full House.

The second bill, House Bill 71, introduced by Rep. Mike Ramone, R-Pike Creek, would lower the real estate transfer tax from 4% to 3%. That bill is expected to advance to the House of Representatives for consideration later in the legislative session.

Collins said HB 191’s tax cuts would have spurred economic growth and created new jobs by giving a portion of the state’s revenue surplus back to the taxpayers.

According to the state’s Economic and Financial Advisory Council, Delaware will end the 2021 fiscal year with a budget surplus of more than $1 billon. In addition, DEFAC analysts predict FY 2022 will see $238.4 million in revenue which had not been previously anticipated.

Collins said that’s what prompted him to introduce HB 191.

Committee Chair Rep. Stephanie Bolden, D-Wilmington, argued the introduction of tax cuts was premature, who said the numbers Collins was working with were preliminary.

“We are still waiting for DEFAC numbers which will be on June 18, which may show us that we may have additional money where we can go back and give some things but we may not as well,” said Bolden.

She said that if the bill were released before the official figures came, they would be unable to account for unexpected changes in the budget predictions.

“I just think it might be a little premature at this particular time,” Bolden said.

There was no public comment on the income tax bill.

After the vote, Collins said that moving forward he would support any reduction in taxes that the committee and the Department of Finance would support.”

Ramone’s  bill to lower the real estate transfer tax from 4% to 3% came with a history lesson.

Homebuyers and sellers in Delaware now must pay 4% of the total cost of a real estate transaction when buying or selling a property, usually split between the two. This tax was increased from 3% in 2017 in what Ramone said was a temporary increase to counter budget shortfalls.

In 2019, the legislature voted to eliminate the sunset clause on the provision, making the 4% transfer tax permanent.

When the tax was increased in 2017, the rate went from “one of the highest in the region to one of the highest in the nation,” Ramone noted. Read more: Bill to lower income tax fails in committee, but one to cut real estate tax passes (delawarelive.com)