/* */ /* Mailchimp integration */
75
paged,page-template,page-template-blog-large-image-whole-post,page-template-blog-large-image-whole-post-php,page,page-id-75,paged-2,page-paged-2,stockholm-core-1.0.8,select-child-theme-ver-1.1,select-theme-ver-5.1.5,ajax_fade,page_not_loaded,menu-animation-underline,header_top_hide_on_mobile,wpb-js-composer js-comp-ver-6.0.2,vc_responsive

What’s New

Delaware’s economy is shrinking, but it does not have to

By Jane Brady, Co-Chair

You are probably familiar with the term “gross domestic product.” That is a figure that represents the total value of the goods and services produced by businesses in a country or a state.  The gross domestic product takes into account the productivity of an economy, measured by the creation of products or services over a particular period of time. Generally speaking, that figure represents the value of the products and services to the people who created them and to those who will be using those products and services. Governments and citizens like to see the value of those products and services grow over time as the workforce increases or technology advances production.  The increase in gross domestic product reflects a growing economy, which produces more jobs, new and different products, and prosperity.

In times of inflation, however, the value of those products and services is diminished by the higher prices that people are required to pay.  The increase in price does not represent any increase in value but rather, simply the reality that consumers are paying more for the same item or service.   In those instances, there is a calculation that can be made to reflect that overpricing, resulting in a figure which is called the “real domestic product.”  That figure, then, more closely measures the economic activity of the country or state.  In times of significant inflation, that figure can sometimes even be a negative number, representing the fact that the economy, despite a larger number, is not growing but is, in fact, shrinking.

Even before the COVID pandemic, in 2019, Delaware’s economy was expected to grow at 0% – that is, we were not expected to increase our gross domestic product in the State of Delaware at all.  Pretty bleak. The reality today is much worse. When you take into account the current gross domestic product for the state of Delaware, and you include in the calculation the impact of inflation on consumers’ buying power, the real gross domestic product is down 8.7%, that is -8.7%. This figure is supported by research from the Caesar Rodney Institute and also by the St. Louis Federal Reserve, which makes calculations of gross and real domestic product for the country and each state.

The United States has the largest gross domestic product in the world. Delaware is perfectly situated geographically to be a much bigger part of our nation’s production and export story. But our state’s business policies are putting us behind.  We need leadership that is going to be creative and innovative in restoring our manufacturing base, bringing good-paying jobs back to Delaware; to look at the opportunities in the Coastal Zone to make Delaware a player in the increased interest in returning the manufacture of vital medicines and technology back to the US. And, we need to support the current reality – increasingly, most of the new businesses in Delaware are small businesses – many employing 5 or fewer people.

Delaware has a proud history of leadership in business and driving our nation’s economy.  Our objective should be to bring prosperity to Delaware families by renewing our role as a leader in the business world.

Why the EV Mandate May Occur One Way or Another

From; Ethan Lang, Executive Director

In May, the Division of Air Quality of DNREC conducted statewide hearings to discuss its ban on new internal combustion vehicles by 2035. That discussion became rather heated in town halls across the state, with citizens on both sides expressing strong views.

But despite what has been said about this issue, the electric vehicle (EV) mandate IS being forced by the effort to reduce carbon dioxide emissions.  Most people do not realize that because of this irrational focus on reducing carbon dioxide emissions, Delaware may get an electric vehicle mandate regardless of Secretary Garvin’s decision and on a timescale much faster than in 2035. Let me explain.

Like other states, Delaware can adhere to regulations set forth by the EPA or adopt more stringent standards set forth by the California Air Resources Board (CARB). States may not develop their own regulations. Generally, northeastern and northwestern states adopt the CARB standards.

While the original proposition of the EV mandate was couched as an ozone-reduction measure, California notes clearly that one of the primary goals was to reduce carbon dioxide emissions. The press release by CARB[1] noted that:

“Transportation is the single largest source of global warming emissions and air pollution in the state … In 2040, greenhouse gas emissions from cars, pickups, and SUVs are cut in half, and from 2026 through 2040 the regulation cuts climate-warming pollution from those vehicles a cumulative total of 395 million metric tons. That is equivalent to avoiding the greenhouse gases produced from the combustion of 915 million barrels of petroleum.”

Indeed, Governor Carney’s State of the State Address[2] tied Delaware’s EV focus to climate change – “The effects of climate change and sea level rise on Delaware communities are real. We see them every day. That is why we need to act. With the help of federal infrastructure funding, we will accelerate efforts to build out Delaware’s electric vehicle charging infrastructure.”

Why this is important is that the Delaware Climate Change Solutions Act[3] “establishes a statutory requirement of greenhouse gas emissions reductions over the medium and long term to mitigate the adverse effects of climate change due to anthropogenic greenhouse gas emissions on the State … and requires State agencies to address climate change in decision-making and rulemaking.”  This bill was introduced into the State legislature on June 2, 2022, and passed the State Senate by a vote of 13-to-6 (with one abstention and one absentee). It was tabled in the House to allow businesses to evaluate its potential impact. This Act was reintroduced during this session as House Bill 99 and will require the electric vehicle mandate to be implemented. It passed the House on June 6 and now awaits a vote by the Senate.

But surprisingly, the Act states, “the State shall implement greenhouse gas emissions reduction strategies to ensure that, no later than January 1, 2030, statewide greenhouse gas emissions on a net basis shall be reduced by not less than 50% from a 2005 baseline” (emphasis added). That is less than seven years from now and requires us to cut emissions by at least half. As CARB1 noted, “transportation is responsible for approximately 50% of greenhouse gas emissions (when accounting for fuel production emissions) … in California.”  There is no way such a bill could go into action without addressing the carbon dioxide emissions from the transportation sector. Thus, the State legislature may enact a more draconian EV mandate even if Secretary Garvin decides against it.

But the possibilities for the enaction of the EV mandate continue beyond here. The New York Times[4] (and other news outlets) reported that the EPA might propose an ambitious, almost innocuous climate regulation like the CARB standard. CARB proposed that 68% of all new car sales would be EVs by 2030; the new EPA rule would require two-thirds by 2032. Remember that Delaware has a choice – the EPA rule or the CARB rule – we cannot make up our own rules. If the EPA goes forward with its rule, the EV mandate is a fait accompli; the only question is how fast it will be implemented.

Note that none of these rules can mandate EV sales. But the Clean Air Act limits the pollution generated by the cars sold by each automobile manufacturer, with substantial fines and penalties levied against companies that fail to comply. These limits are so stringent that automobile manufacturers must sell a certain percentage of EVs to comply with the rule. Thus, while EV sales cannot be mandated directly, forcing automobile manufacturers to comply with pollution levels generated by the new cars they sell dictates the proportion of EVs sold.

So, our solution is not just to petition Secretary Garvin to reject the EV mandate. Many of those in opposition to the mandate have noted that it is being forced on us by non-elected officials, with the tacit assumption that it would be acceptable if elected officials voted for it. But the passage of the Delaware Climate Change Solutions Act will require a vote by our elected officials. Thus, concerned citizens must tell all our elected officials – in the Governor’s Office, the State Senate, and the Delaware General Assembly, as well as in Washington DC – how they feel. Otherwise, we will be forced to pay more for electric vehicles, both in initial and operating costs, all while being stripped of choice.

A BETTER DELAWARE SELECTS A NEW EXECUTIVE DIRECTOR

 Ethan A. Lang

April 15, 2023

 

WILMINGTON, Del. – Chris Kenny, the founder of A Better Delaware (ABD), has selected Ethan Lang as its new Executive Director, leading its efforts as a non-partisan public policy and political advocacy organization that supports pro-growth, pro-jobs policies and greater transparency and accountability in state government. 

 

In April, Lang will succeed Kathleen Rutherford, who has accepted a position as an advocacy consultant for the D.C.-based Taxpayer Protection Alliance. “Kathleen was invaluable to ABD. Her contributions made us a force in Delaware,” Kenny said. Rutherford led the organization through the last two years, advocating more rapidly opening the state during the lockdown. Under her watch, ABD expanded its advisory board with highly credentialled experts and had more than a 90% publishing rate for their blogs. ABD is now looking to advocate for better government transparency and accountability, hoping to establish an Office of Inspector General and an Office of Legislative Ethics.

 

Lang has been involved in politics for five years, getting involved with his local representative’s campaign as a volunteer coordinator at age sixteen. He went on to Dartmouth College, one of the eight Ivy League schools, and will graduate with degrees in government and public policy. He is also a Politics and Law Fellow and a senior editor for the Dartmouth Law Journal. “I am excited to see what Lang does with ABD. He brings a combination of pedigree and energy to the organization that I believe can take us far and continue the good work of our previous directors.” Vice Chair of ABD, Sam Waltz, concurred with Kenny, adding, “I am pleased with the choice. I believe that the advisory board and Lang have a formidable skill set, and I eagerly await his plans for the future of ABD.”

 

“A Better Delaware is laying the groundwork for change in our state,” said Lang. “I hope to build upon the strong foundation of my predecessors and bring my perspective to the organization. To me, this is personal. I am young and want to see a Delaware in which I can continue to be proud of and, hopefully, raise my family in. I hope to expand upon our extensive social media reach across all our platforms and continue our grassroots efforts in promoting policies that will benefit our economy. Our mission is essential; Delaware needs a government that is transparent and accountable to the people.”

 

ABOUT A BETTER DELAWARE 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. A Better Delaware can be found on Facebook @abetterdelaware and at www.ABetterDelaware.org.

 

Contact: Ethan A. Lang

 

ethanlang@abetterdelaware.org

Developing Delaware’s Workforce through retired Military

Recently, Democratic Gov. John Carney stressed the need to expand Delaware’s economy by building a stronger workforce for the future.  He stressed that this may be the state’s biggest single challenge. His remarks ring a little hollow when the state fails to utilize one of our largely untapped resources – our Delaware veterans.

Today, there are over 70,000 veterans in Delaware. Many are retired after 20 years of service from our respective armed forces with 20 years or more of civilian work life remaining before full retirement. Many retirees receive hundreds of thousands of dollars of high-level education in a variety of fields of endeavor. A majority of veterans say their military service is an important asset for their transition to civilian life and useful in giving them the skills they need for a job outside the military.  A recent PEW research survey points out that over 58% of veterans seeking employment found their military experience was useful or fairly useful in their new civilian jobs.  Military leadership training is invaluable, especially in leadership. Our state recognizes this invaluable commodity and has mentioned this a source for recruitment, but has not placed the necessary emphasis for permanent recruiting. Governor Carey did not highlight this resource in his recent State of the State address. He did address the shortage of teachers and pay issues but did not suggest that efforts should be pursued to encourage retired or separated military personnel to help fill the gaps.  In Delaware, we have the largest air mobility base in the United States with approximately 11,000 airmen and joint force personnel, civilians and families.  Delaware service men and women responsible for global airlift aboard C-5M Super Galaxy and C-17 Globemaster aircraft in support of our armed forces. The United States Air Force cannot conduct these operations without personnel trained in electronics, communications, aerospace and maintenance with sophisticated equipment. Every year many air force personnel retire and look for employment.  Many serve in our state in civilian capacities, yet we do not actively recruit retirees as a labor policy.  We also have active national guard and military service reserve units in the state where they receive military training in their respective military fields of specialties.  This training can easily translate to civilian life and jobs. Delaware should make it a priority to actively recruit at active military locations to fill the gaps for jobs.

The United States Department of Defense manages the Skill Bridge Program as an opportunity for active-duty service members to gain valuable civilian work skills and experience during their last 180 days of service.  Opportunities exist for this program to prepare separating service members to build resources, make important contacts, and explore employment while still active in preparation for the civilian workforce.  The State and civilian employers should take advantage of this preparatory program to help fill unemployment gaps.

It is important for the state to establish and maintain close partnership with the Veterans Administration (VA) in this arena. No mention of this important contact was emphasized in the Governor’s comments.

As a final note, the VA offers the Veterans Employment Service Office for career preparation and transition services to implement the Veterans Employment Opportunities Act. A close partnership with the VA and the State of Delaware would increase employment opportunities for our ever-increasing veteran population.

Briefing takes note of lead role of fentanyl in 515 suspected overdose deaths

From: Delaware Business Now

This week, Lt. Gov. Bethany Hall-Long, along with top leaders from the Delaware Department of Health and Social Services and Delaware Department of Safety and Homeland Security held a briefing on suspected drug overdose deaths in the state. The event included the announcement of an opioid response center.

In 2021, Delaware reported 515 overdose deaths, an increase of more than 15% over 2020, according to the Delaware Division of Forensic Science (DFS). In Kent County, overdose deaths increased 74% from 50 in 2020 to 87 in 2021. DFS also reported that 425 of the 515 deaths involved fentanyl, a synthetic pain reliever that is 50-100 times more potent than morphine.

“As a nurse, Chair of the Behavioral Health Consortium, and Lt. Governor, I hear every day from Delawareans and their families about the challenges they face battling substance use disorder and receiving the treatment services they so desperately need,” said Hall-Long. “We are working hard across our systems to expand access and connect individuals to quality treatment services. In 2020, Delaware was one of only four states to experience a decrease in the rate of overdose deaths thanks to the hard work of those who are committed to this fight. Still, too many families have an empty seat at the table because their loved one lost the battle to substance use disorder. The current data is alarming. We have to do even more to support them and ensure critical treatment and recovery services are ready and available, and to stop the loss. Delawareans deserve a behavioral health system that works for everyone.”

“Unfortunately, the number of accidental drug overdose deaths occurring in the State has seen a 19% increase over the last three years,” said JoHN Evans, director of the Delaware Division of Forensic science  “Fentanyl continues to be the most frequently found compound, with it being identified in 82.5% of the overdose deaths.  If you are a white male between the ages of 30-59, you are the most likely to die in our state as the result of a drug overdose.”

Captain Joshua Bushweller, Intelligence Commander and Director of the Delaware Intelligence and Analysis Center (DIAC) at the Delaware State Police reported that more than 5,000 drug-related crime incidents occurred in 2022, with 19% being cocaine-related, 19% heroin-related, 3% methamphetamine, 2% hallucinogen., 2% amphetamine, 1% opium, and 3% other.  Marijuana comprised 32% and paraphernalia 19%.  New Castle County continues to have the highest incidence of opioid crime incidents compared to the other counties.  Capt. Bushweller displayed a heatmap showing drug incident hotspots, calling attention to the top five cities with drug incidents in the last five years. The cities in order of prevalence are Wilmington, Dover, Newark, New Castle, and Seaford.

Dr. Greg Wanner, chief physician for the Delaware Division of Public Health, provided a demonstration of the use of fentanyl test strips that are now included in the Narcan kits being distributed.  The test strips are highly sensitive and will detect fentanyl down to 0.1 mcg/ml.

“The use of fentanyl test strips is an important part of a comprehensive harm reduction strategy to reduce overdose deaths in the state,” said Dr. Wanner. “Fentanyl is the leading cause of drug overdose deaths in Delaware.  The test strips are a preventive measure. After a test strip detects fentanyl, an individual can choose not to use the drug based on the additional risk. We will continue to discourage drug use and encourage people to seek treatment, but for persons with substance use disorder, we are using a compassionate approach to help raise awareness and empower those individuals to make informed choices.”

Heatlh and Social Services Cabinet Secretary Molly Magarik  encouraged Delawareans who need support – whether they are actively using substances or not – to reach out to trusted sources for help.

“We’re urging people who are struggling with addiction to consider different paths towards help,” said Secretary Magarik. “You can ask for the Police Diversion Program if you get in trouble with the law and are ready to get help. You can visit HelpIsHereDE.com to get information about Bridge Clinics where you can walk in and talk to someone who is in recovery themselves and who can help you explore your options for treatment. You can order fentanyl test strips from HelpisHereDE.com so you know what’s in the drugs you’re using and so you can make smart choices about protecting yourself. And you can connect with Brandywine Counseling’s drop-in centers to get help.”

Hospital Consolidation Continues to Boost Costs, Narrow Access, and Impact Care Quality

From: American Enterprise Institute As hospital consolidations swept the country over the last three decades, their executives predicted the moves would produce lower costs. But decades of health services research focused on the actual results of this trend have found the opposite. Consolidation has consistently produced higher care prices. Nevertheless in 2023, health care merger mania not only continues, but is expanding in increasingly complicated and more costly ways. Why is this happening in a nation that has otherwise made the reigning in of runaway health care costs a top economic priority?

That question was the subject of a University of Pennsylvania Leonard Davis Institute of Health Economics’ virtual seminar that brought together four top authorities to review the benefits, disadvantages, and trajectory of ongoing health care industry consolidations. See video presentation on the Impact of Consolidation on Health Care: https://youtu.be/eQMlWvBqheA

Government report: Unemployment fraud may top $60 billion during pandemic

From: The Center Square A U.S. government report released Monday estimates that there could have been more than $60 billion in unemployment insurance fraud during the pandemic.

The report by the U.S. Government Accountability Office says that figure is an estimate spread over the entire unemployment system and should be “interpreted with caution.”

There has been $4.3 billion of unemployment fraud proven by state workforce agencies and at least $45 billion more in transactions that were flagged as potential fraudulent unemployment claims but not confirmed.

The U.S. Department of Labor stated that about $878 billion in total unemployment benefits were paid from April 2020 through September 2022, the report stated. There was $209 billion in expenditures under the regular unemployment insurance and about $669 billion payouts under the various pandemic unemployment programs, which ended September 6, 2021.

The report also questioned the U.S. Department of Labor’s efforts to combat fraud.

“The Department of Labor has taken steps to address such fraud,” the U.S. Government Accountability Office pointed out. “However, the department has yet to develop an antifraud strategy based on leading practices from GAO’s Fraud Risk Framework as required by law.”

The GAO continued: “While these steps help prevent, detect, and respond to fraud, as of December 2022, DOL has not yet developed an antifraud strategy based on leading practices in GAO’s Fraud Risk Framework. Also, it has not yet addressed the six October 2021 recommendations GAO made including to identify, assess the impact of, and prioritize UI fraud risks. These are essential pieces to inform an overall antifraud strategy. Without an antifraud strategy, DOL is not able to ensure that it is addressing the most significant fraud risks facing the UI system in alignment with the Fraud Risk Framework.”

Is A Little Bit More Enough?

From: Kathleen Rutherford, Executive Director, A Better Delaware 

When John D. Rockefeller, once the richest man in the world, was asked by a reporter how much money is enough, he responded: “Just a little bit more.”

Rockefeller’s sentiment is one evidently shared by the Delaware state government under Gov. John Carney’s leadership, something he affirmed on Jan. 26 while presenting his record $5.48 billion proposed Fiscal Year 2024 budget.  While there where some highlights to his presentation, Governor Carney’s budget proposal missed the mark on providing practical common-sense solutions to our states most concerning issues.

Fiscal Responsibility

Gov. Carney Carney’s budget maintains the state’s untapped $316 million “rainy day fund,” and has directed nearly $19 million into a separate “budget stabilization” reserve fund. This leaves $421.5 million sitting in a bank account, essentially, available to use only if the state falls on hard times. The fiscal responsibility of building the state’s savings account is worthy of applause but ignores the elephant in the room: our states ballooning pension debt. This year  a proposal to allocate $51M to pay down Delaware’s  public pension debt, while the current debt is $8.9 Billion. Delaware’s financial problems stem mostly from unfunded retirement obligations, (it only had seven cents for every dollar of promised retiree health care benefits.)  A Better Delaware recommends significantly paying down Delaware’s public pension debt and reducing new state worker retiree health and pension programs, so that future taxpayers will not be burdened with paying the under-funded retirement promises.

 Taxes and Spending

To the governor’s credit, Carney’s budget reduces the effective tax burden on lower-income earners by increasing the state’s standard deduction from $3,250 to $5,700, a 75% jump. It also will increase the amount of refunded tax for those who meet federal Earned Income Tax Credit requirements to 7.5%. Those moves should provide some relief for struggling Delawareans, but the budget proposal fails to enact the type of long-term, meaningful tax cuts that would unleash the state’s economic potential.

According to The Tax Foundation’s State Business Tax Climate Index, Delaware ranks as having the 44th highest individual income tax burden in the nation. It leads the country with the highest corporate tax, and at 4%, Delaware’s realty transfer tax is the highest in the nation.

In a recent position piece, A Better Delaware outlined its legislative priorities, which include cutting the regressive gross receipts tax, reducing individual income taxes, slashing the realty transfer tax and lowering the corporate tax. Rather than celebrating the largest budget in state history, elected leaders should be asking why now isn’t as good a time as ever to make Delaware a more affordable place to live, work and do business.

Health Care

Carney’s budget proposal doesn’t call for any of the things most likely to reduce health care costs for Delawareans: reforms to the state’s Health Commission and Health Resources Board, the repeal of cumbersome Certificate of Need (CON) laws, nor expanding options for out-of-state health insurance plans.

Delaware ranks fifth highest in the nation for health care costs per capita. In 2020, 10.1% of Delaware adults chose not to see a doctor because of costs. The state Health Commission’s Health Resources Board, as designed, prevents and discourages health care providers from entering or expanding in Delaware due to onerous CON laws. These laws stifle competition, reduce access to care and promote monopolies.

Carney’s budget proposal should come alongside demands to audit Delaware’s Medicaid system for fraud and abuse, phase out the Health Resources Board, eliminate CON laws, and increase access to care, competition and choice. In its current form, the budget won’t do anything to alleviate these issues. The General Assembly must consider alternatives before approving Carney’s proposal.

 Education

Carney’s budget offers 9% pay raises for teachers and 3% raises for other public-school employees, as well as $53 million in “Opportunity Funding” for students with disabilities, low-income students and those whose first language is not English. This proposal follows a disturbing trend: As Delaware’s education spending grows, students’ test scores fall. That’s because throwing money at a problem doesn’t make it go away.

In 2022, Delaware ranked 47th in educational performance out of 50 states when combining the rankings in both math and reading for fourth and eighth graders. That’s despite spending more per-pupil than the other 41 states.

In light of the state’s teacher shortage, Delaware should expand pathways to becoming a teacher, accept out-of-state certifications and ease restrictions on educator licensing. The governor’s budget doesn’t call for any of that.

Also absent in the Governor’s proposal was support for school choice expansion. Expansion in the form of education savings accounts (ESA’s) and tax credit scholarships would give parents the financial freedom to choose where their kids go to school and create healthy competition in the education marketplace.

 Accountability and Transparency

This year the Bond and Capital Improvements Act totals $1.289 billion. That’s $1B in cash to the Bond Bill – up $150M from last year. It is the 5th “one-time” supplemental bill which is another 5.9% growth of overall spending. How much is sitting unspent? So why then, did Gov. Carney not include funding for oversight of the largest budget in our state’s history?

A Better Delaware recommends funding for the formation of a nonpartisan Office of Legislative Ethics and independent Inspector General’s office — ideas that nearly came to fruition in the last General Assembly. Neither does the budget include any funds to reform Delaware’s antiquated and toothless Freedom of Information Act, from which lawmakers have exempted their own communications. These offices would ensure accountability from our elected officials and state offices and give citizens recourse when they witness or fall victim to waste, fraud, abuse, or misconduct.

Workforce Development

Gov. Carney signed into law a bill that will increase Delaware’s unemployment benefit one day after announcing a whopping $46.6M investment for workforce development. Carney stated in his budget address that in Delaware “thousands more job openings than we have people looking for work.” Why then, make it attractive to not apply for a job? A Better Delaware believes that by tightening unemployment benefit requirements to have applicants prove that they are seeking work and showing up for job interviews will help in decreasing our states workforce shortage.

  The governor’s budget does nothing to reform burdensome business regulations, reduce occupational licensing fees, or increase apprenticeship ratios. Occupational licensing fees, which require trained professionals to pay for the privilege to work, particularly impact lower-income Delawareans. Those who can least afford it are shut out of job opportunities by costly regulations. Apprenticeship ratios, which often require three or even four journeypersons for each apprentice, restrict employers from creating opportunities for young tradespeople, crippling their ability to fill jobs that so many Delawareans need. If the governor was truly committed to workforce development, addressing these barriers to entry would have been highlighted as a priority in his budget proposal.

According to a study by Mercatus, Delaware is has the 2nd most regulations per capita in the region.  Before passing the budget, the General Assembly should insist on a framework to reduce overburdensome, antiquated regulations. Reducing the number of regulations would refocus Delaware’s government on the issues that matter while also unleashing the job creating power of small businesses.

 Energy and Climate

One and a half years after allocating some $80 million to a Clean Water Trust Fund which hasn’t since completed a single project (or started more than one, for that matter), Carney proposed an additional $26.2 million for the fund, to be administered in large part by the notoriously opaque Department of Natural Resources and Environmental Control. Before this money is allocated, there needs to be a serious inquiry into the efficiency and transparency of the Clean Water Trust.

The Trust was pitched to the General Assembly on the promise that it would not run out of funds or require new legislation to replenish its war chest because it would be replenished year after year by interest from project loans. With no projects to point to, the Trust is far from self-sustaining. The General Assembly must take a hard look at this before authorizing additional funds.

Additionally, as the state moves toward a near-total ban of new gas-powered vehicles by 2035 (and without approval by the legislature), the governor’s budget proposal includes $57 million for EV infrastructure and other associated projects. Rather than allowing the free market to drive this technological “advancement,” Carney has signaled his intention to spend an ever-ballooning amount of taxpayer dollars to subsidize an initiative with questionable environmental benefits.

The General Assembly should assert its right to weigh in on the gas-powered vehicle ban and offshore wind projects by rejecting any budget that authorizes the spending of state funds on these initiatives without legislative consent. In this budget, lawmakers can assert their power over runaway executive agencies. In addition, establishment of an independent Energy Advisory Council is needed to establish a realistic state energy plan to be approved by the Delaware legislature.

With unprecedented Federal and State funds flowing through Delaware, Dover has a unique and historic opportunity to lead in the moderation of the governments overall share and control of those citizen taxpayer dollars.

Now is the time to ensure more access and freedom of those dollars go to the individuals and businesses permitting them to choose where it is most productive with less mandates and restrictions. All the while ensuring all the branches of governments portions are openly, rigorously, and independently reviewed to eliminate waste, fraud, and abuse at each level.

 

 

                         

Adding retirees to health panels passes Senate

From: Town Square Live 

Despite vehement opposition from a state retirees’ group, a bill that would add retirees to committees that help determine health care options overwhelmingly passed the Senate Wednesday, just moments after it had cleared a committee hearing. Voting against it were three Republican senators.

Senate Bill 29, sponsored by Senate Majority Leader Bryan Townsend, D-Newark, would give retirees a voice by putting one retiree with full voting rights on the State Employee Benefits Committee that oversees retiree healthcare plans.

It also would create the Healthcare Benefits Advisory Subcommittee of the State Employee Benefits Committee, with three state retirees and four members of the General Assembly and give that committee the power to hold public meetings and make recommendations about retiree health plans, with a goal of doing that by May 1.

Townsend said in both the hearing and the Senate that he didn’t think the May 1 deadline was feasible, but it was a goal.

An amendment added to the bill would require members of the state committee to attend its meetings themselves, instead of sending a representative, but would allow members to continue sending representatives to subcommittee hearings.

The state’s move last year to switch all 30,000 retirees to a Medicare Advantage plan instead of continuing their current specially tailored plan galvanized retiree opposition. The retirees accused the state of failing to live up to guarantees of health care and of hiding the fact that the plan was being changed.

The state argued that it had not been done secretly, but in open meetings that various officials attended, and that it was necessary to stabilize health care expenses in order to be able to continue to provide high quality care for future retirees.

After a group of retirees led by retired state Rep. John Kowalko formed RiseDelaware and sued the state.

Superior Court Judge Calvin Scott sided with them, saying that the state had promised that health benefits would not change, but the Medicare Advantage plan included requirements for preauthorization and demanded retirees use in-network doctors, big changes.

He ordered the state to stop their plans. The state later allowed retirees to stay on their current plan.

Townsend said there is no process in place to confirm what happens next, and his bill would help solve that problem.

Retirees oppose bill

No, it won’t, Kowalko testified in the Senate Executive Committee hearing.

Kowalko said RiseDelaware is worried that the bill is being fast-tracked and that it was only designed to make the General Assembly feel like it was doing something.

retirees

JOHN KOWALKO

“Retirees represented by RiseDelaware have concluded that this piece of legislation appears to be an attempt by the General Assembly leadership and this administration to avoid or ignore their responsibility and obligation to retirees,” Kowalko said.

Faith Rentz of the Delaware Department of Human Resources said that her office does support SB29, but it will come with costs, even though the bill says there will be none.

Rentz said that will include $100,000 for salary and benefits for someone to organize and oversee the subcommittee, and likely another $150,000 for consulting and actuarial advice. In addition, she said, the Department of Justice is likely to ask for money because it will be expected to provide advice.

Former Sen. Karen Peterson, who has been leading the charge with Kowalko, said Townsend’s bill is merely moving around the deck chairs on the Titanic.

“Senate Bill 29 will do absolutely nothing to resolve the retiree health care issue because the subcommittee created by this bill is loaded with the people who are hell bent on shoving Medicare Advantage down our throats,” she said. “We already know what the recommendation is going to be. But this way you can all pat yourselves on the back.”

She said a vote for the bill was a vote against retirees, especially those over 65 who are on Medicare.

“If you want to do something constructive, then grandfather us into a Medicare supplement plan. People who are already in the plan stay there. New people get the new plan,” she said. “That’s how it’s always been handled and should continue to be handled.”

Mary Graham said there are more options to explore than just shifting everyone to a Highmark Medicare Advantage plan, and the state should consider them.

Retirees

BRIAN PETTYJOHN

Sen. Brian Pettyjohn, R-Georgetown, said during the committee hearing that the bill is not an end-all, be-all solution.

“But this is a step,” he said. “It’s a very important step so that we as a body know what we need to do to make healthcare for retirees work.”

His mother is a state retiree and he said she had a lot of questions.

“I think this bill gives us the tools that we’re going to need to make an informed decision for all of you,” he told the people who testified. “Not just the ones that are here now, not just the retirees, the current retiree. Let’s take a look at a long-term, sustainable solution to retiree health care.”

During the Senate debate, Sen. Eric Buckson, R-Dover, asked for the Senate to table the bill to allow more comment.

So many people wanted to comment during the committee hearing that they were limited to one minute each.

“Many folks who showed up today and had value in their conversation and deserve the opportunity to speak in committee,” said Buckson, who is serving his first term in the Senate.