In The News
A Better Delaware is a non-partisan public policy and political advocacy organization that supports pro-growth, pro-jobs policies and greater transparency and accountability in state government.
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In The News

State’s jobless rate rises again

From the Delaware State News

DOVER — Delaware’s unemployment rate rose again in October, the fourth straight month it has increased.

Data released Friday by the Delaware Department of Labor estimates 3.7 percent of the state’s workforce was not employed last month, up .2 percent from September, Delaware’s unemployment level has surpassed the U.S. rate for the first time since December 2017.

The First State’s unemployment rate hit 3.2 percent in April, remaining there for three months before it began climbing again.
The national rate has fluctuated since then but now sits at 3.6 percent, an increase of .1 percent from the month before.

“Unpublished unemployment data from the Delaware Current Population Survey using 12-month averages show that the share of job losers has increased to 75 percent of the unemployed from just under 40 percent one year ago,” Tom Dougherty, the acting chief for the Office of Occupational and Labor Market Information in the Department of Labor, wrote in a commentary released with the numbers Friday.

“The share of job leavers and reentrants who voluntarily enter the pool of unemployed seeking better opportunities has fallen to under 20 percent from just over 50 percent one year ago. The increase in the number of job losers combined with a decrease in voluntary unemployment of job leavers and re-entrants seeking better opportunities could be a sign of labor market weakness in the months ahead.”

 

Read more:

https://delawarestatenews.net/news/states-jobless-rate-rises-again/

If Delaware stock exchange flops, NCCo would own a wrestler-founded tech company

From The News Journal 

If a floundering Wilmington stock exchange fails to repay a $3 million government loan next year, New Castle County residents would become partial owners of a cash-poor Chinese-American tech company founded a decade ago by a professional wrestler.

In what is the latest turn in the county’s most controversial attempt at economic development in recent memory, New Castle County Council voted Tuesday to swap out old collateral – a software license – on its loan to the Delaware Board of Trade for shares of the stock exchange’s new controlling owner, Ideanomics Inc.

It follows a chaotic year for DBOT, as it is known, in which its limited operations sputtered while churning through investors and clinging to hopes of becoming a trading platform for shares of small and foreign companies looking for American investors.

Led by an influential Chinese-American billionaire, Ideanomics bought out DBOT’s investors last spring with a share swap deal valued at $18 million.

Those included Delaware Rep. Mike Ramone, R-Pike Creek, and John Hynansky, who Joe Biden has called a friend.

While company spokesman Tony Sklar called DBOT a “distressed company,” he pointed to its technology partner, Shawn Sloves, as the culprit.

Sloves’ company, Fundamental Interactions, is suing DBOT, claiming it hasn’t been paid in months.

It started in 2015 with a promise of hundreds of new jobs for a stagnant downtown Wilmington. Convinced of the potential and with an eye on the next election, then-New Castle County Executive Thomas Gordon inked a deal with the startup for a 5-year, $3-million loan, using money from a public parks investment fund

While the company had no revenues at the time, Gordon’s hope rested on the resumes of its founders – a mixture of financial experience, tech smarts, and political gravitas. They included former-Philadelphia Stock Exchange CEO John Wallace, and longtime aide to Joe Biden, Dennis Toner.

 

Read more:

https://www.delawareonline.com/story/money/business/2019/11/14/if-delaware-stock-exchange-flops-ncco-would-own-wrestler-founded-tech-company/3896771002/

Want to know more about legislators’ financial reports? This News Journal database will tell you

From The News Journal

Every year in Delaware, state lawmakers have to disclose their personal financial interests to prove they are making decisions in the best interest of the public and not themselves.

Because those records aren’t easily available to the public, The News Journal has rounded them up and published the forms for all 62 members of the General Assembly. The disclosures, which were submitted in the spring, list officials’ investments, debts and sources of income in 2018.

The contents of those statements are available through our disclosure database. You can look up your representative and senator’s disclosures in the database by typing in either the lawmaker’s name or your address.

In the process of creating the database, The News Journal found that some lawmakers left off income sources, investments and board memberships in their initial statements, which are not independently audited or checked for accuracy once they are submitted.

“They (public officials) certify that it’s true when they submit it,” said Deborah Moreau, attorney for the state-funded Public Integrity Commission who collects the disclosures every year. “We take them at their word that whatever is on that form is true.”

After The News Journal alerted lawmakers that the contents of their disclosures would be published online, seven of them — Reps. Stephanie Bolden, D-Wilmington East; Melissa Minor-Brown, D-New Castle; David Bentz, D-Christiana; Paul Baumbach, D-Newark; Lyndon Yearick, R-Camden-Wyoming; Debra Heffernan, D-Bellefonte and House Majority Leader Valerie Longhurst, D-Bear — have amended and resubmitted their forms to the Public Integrity Commission.

 

Read more:

https://www.delawareonline.com/story/news/politics/2019/11/14/new-journal-database-tells-you-delaware-lawmakerss-finances/2517151001/

DOJ seeks $3 million increase in spending

From Delaware State News

DOVER — The Delaware Department of Justice is seeking about $3 million more, including 17 additional positions, for the upcoming fiscal year, Attorney General Kathy Jennings told budget officials Wednesday.

The Office of Management and Budget is currently in the midst of the annual fall budget hearings, where about 30 state agencies and organizations present their asks for the fiscal year beginning July 1.

Wednesday was only the third day of presentations, which are slated to continue for another two weeks.

After the hearings wrap up one week before Thanksgiving, Gov. John Carney will work with budget officials to craft his spending recommendations. Those will be presented in the second half of January, allowing the General Assembly five months to review those suggestions before voting on them in late June.

This year’s statewide operating budget totals $4.45 billion in general funds, which mostly consist of taxes and similar revenues.

The Department of Justice is receiving $38.6 million this year, up about $1.8 million from the prior year. A little more than $1.7 million of the requested $3 million increase would go to funding 17 positions: eight deputy attorneys general, six paralegals, one social worker, one criminal investigator and one administrative specialist.

Those added positions, Ms. Jennings said, would help the agency put more focus on prosecuting sex crimes, defending civil rights, protecting the elderly and the young alike, preventing data breaches, helping individuals with immigration issues and cracking down on instances of people trying to defraud the government.

 

Read more:

https://delawarestatenews.net/news/doj-seeks-3-million-increase-in-spending/

Prosperity Partnership, North East England counterpart sign cooperative agreement

From Delaware Business Now

The Delaware Prosperity Partnership and the North East Local Enterprise Partnership (LEP), a public, private and education sector partnership in North East England, UK, signed a cooperative agreement to support joint business development.

LEP works in partnership with the business community to grow the economy and create more and better jobs in the region. DPP is Delaware’s economic development agency.

Specifically, the two organizations will work together to support mutually beneficial international expansion for firms that work in:

  • Bioscience/Life Science and Wind Supply Chain
  • Advanced Engineering and FinTech
  • Innovation and Skills

North East England is one of nine official regions of England, which includes Northumberland, County Durham and Tyne and Wear. The North East LEP is responsible for promoting and developing economic growth in the local authority areas of County Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside and Sunderland.

Representing Delaware was Kurt Foreman, CEO of DPP and Rod Ward, CEO of CSC, a provider of business, legal, tax, and digital brand services. Ward is Co-Chair of the DPP Board of Directors.

Representing the UK was Andrew Hodgson, North East LEP Chair, and Helen Golightly, North East LEP Chief Executive.

Both economic development organizations will promote their partner area as a location for local firms looking for international business expansion opportunities. They will actively collaborate, support joint events, and encourage cross-education and training through the local universities, a release stated.

 

Read more:

https://delawarebusinessnow.com/2019/11/prosperity-partnership-north-east-england-counterpart-sign-cooperative-agreement/

Fairfield by Marriott coming to Middletown

From Delaware Business Now

LNW Hospitality and Axia Hotel Group have announced plans to build a Fairfield by Marriott Hotel in Middletown.

LNW announced on its website that the venture signed a franchise agreement with Marriott and is expected to break ground on a new Fairfield by Marriott in 2020, with an opening scheduled in 2021.

LNW Hospitality develops, owns, and manages hotel assets on the east coast, with three Marriott brands in its portfolio.

The company is best known for renovating and developing hotels on Jeykill Island on the coast of Georgia.

The blog post noted that parent company, Leon N. Weiner & Associates, Inc. has been in Delaware for more than 70 years. In Middletown itself, through its ownership of Middletown Trace Apartments and Fairfield Commons Apartments.

“We see tremendous opportunity in Middletown,” said Kevin Kelly, chairman of LNWA. “The town is thriving, Fairfield by Marriott is a great brand, and our partner, Axia, has a strong track record in town as well.”

Axia Hotel Group has been in the hotel business in Delaware since the 1960s and has developed eight hotels.

 

Read more:

https://delawarebusinessnow.com/2019/11/fairfield-by-marriott-coming-to-middletown/

Chief justice submits final budget request

From Delaware State News

DOVER — Chief Justice Leo Strine made his final scheduled appearance as the head of Delaware’s judiciary Monday. The chief justice, who plans to step down from the bench at the end of the month, presented his budget request to state officials, although he outlined it in writing earlier this month.

Budget hearings began early this year to allow Chief Justice Strine to stick to his planned departure date, with his post not set to be filled immediately.

These fall hearings represent the next step in the budget process, giving state departments a chance to present their spending requests for the fiscal year starting next July. From here, the governor works with the Office of Management and Budget to prepare his budget recommendations, which are officially unveiled and presented to lawmakers in January.

Although budget asks are submitted to OMB and the governor ahead of time, the presentations enable budget officials to get more information on certain things and hear from members of the public.

The chief justice’s letters, sent to OMB Director Mike Jackson Oct. 15, were an opportunity to deliver a final message, and the priorities as detailed in them should come as no surprise to anyone who has followed Chief Justice Strine’s tenure.

His asks in the letters are more general rather than specific dollar amounts, calling on the state to provide more legal support for the poor, fully fund a judicial technology fund, expand the court’s workforce, raise pay for state workers and partner with the private sector to fund new judicial facilities.

The total operating request is for $104.3 million. The judicial branch’s current year operating budget is $100.7 million.

 

Read more:

https://delawarestatenews.net/news/chief-justice-submits-final-budget-request/

JPMorgan Chase announces $4 million investment in collaborative effort to revitalize ‘left behind’ Wilmington neighborhoods

From Delaware Business Now

JPMorgan Chase & Co. announced a $4 million, three-year investment in Equitable Wilmington, a collaborative aimed at promoting growth in Wilmington’s West, East and Northeast neighborhoods.

The collaborative includes Cinnaire Lending Corporation, True Access Capital and NCALL Loan Fund and will use the funds to support affordable housing development, small businesses and community facilities while addressing social determinants of health—including access to healthy foods, and health care facilities—through partnerships with the healthcare sector.

“We’re very proud to make this investment in Wilmington, a community that’s so important to JPMorgan Chase,” said Tom Horne, JPMorgan Chase market director for Delaware. “This city has been making meaningful progress but we know there’s still a lot of work to be done. We want to show up in a big way to help address the challenges and we’re excited about the great work that this collaborative will do.”

“We have worked hard in Delaware to support new affordable housing and small business development, and these investments in Equitable Wilmington will build on progress we’re seeing across our city,” said Gov. John Carney. “This is the kind of collaboration that can create real positive change in Delaware communities, and I want to thank everyone involved for their commitment to the City of Wilmington.”

 

Read more:

https://delawarebusinessnow.com/2019/10/jpmorgan-chase-announces-4-million-investment-in-collaborative-effort-to-revitalize-left-behind-wilmington-neighborhoods/

21 Delaware employees made more than 200K last year — none were the governor

From the News Journal

Twenty-one people who work for Delaware state government made more than $200,000 in 2018, and at least 13 are on track to make a similar amount this year.

Mark Brainard, president of Delaware Technical Community College, tops the list, according to a database of state employee salaries provided by the state Office of Management and Budget.

Brainard, who topped last year’s list, earned $266,540 in 2018. He made a base salary of $245,000 along with $20,585 listed as “other” earnings, according to the state budget office data.

Delaware state employees can make “other” earnings in more than 140 ways, ranging from stipends, health care cost supplements, coaching a school sports teams or serving on the state police scuba diving unit.

Brainard could end up making an even bigger paycheck in 2019, since his salary has been bumped to $249,900 this year. He’s still making less than his predecessor Orlando George, who collected a nearly $371,000 in salary when he retired in 2014.

More than half of the employees who topped the list worked for the health and homeland security departments last year. That includes police, nurses, psychiatrists and forensic examiners. The list also includes a couple of New Castle County school superintendents.

 

Read more:

https://www.delawareonline.com/story/news/politics/2019/10/30/these-delaware-employees-made-more-than-200-k-last-year-none-were-governor/4020677002/

Pharma start-up gets state grant; plans call for hiring up to 49 biotech positions

From Delaware Business Now

Prelude Therapeutics, a privately-held, clinical-stage biopharmaceutical company, plans to add up to 49 biotech positions by 2022 and invest $5 million in expanded lab and office space in the Wilmington area.

Prelude conducts research focused on key drivers of cancer cell growth, survival, and resistance. The company has two clinical trials in progress, with more pre-clinical development candidates in the pipeline.

The company is outgrowing its current locations, split between the Delaware Innovation Space (located on the site of the former DuPont Experimental Station) in Wilmington and nearby overflow office space.

The Delaware Council on Development Finance (CDF) recently approved Prelude for a Performance Grant of $684,090 and a Capital Expenditure grant of $150,000 for a total of up to $834,090. Both would come from the Delaware Strategic Fund and both are contingent on Prelude meeting its hiring goals.

The Delaware Development Partnership assisted Prelude.

With the additional jobs, Prelude’s team will expand to a projected total of 81 employees by 2022. The new positions include professional scientists and skilled associates and will add approximately $5.5 million to its annual payroll.

Prelude began operations in 2016 with a handful of employees and has now grown to 32 people. The company has raised $95 million in funding for its work.

 

Read more:

https://delawarebusinessnow.com/2019/10/pharma-start-up-gets-state-grant-plans-call-for-hiring-up-to-49-biotech-positions/