Mixed Messages from the Federal Judiciary on the Affordable Care Act do Not Relieve the Congress of their Obligation to Fix this Law

In July, two seperate federal appeals courts issued contradictory rulings on the legality of providing subsidies to aid in health insurance affordability in states which have declined to set up exchanges under the Affordable Care Act.

A three-judge panel of the U.S. Court of Appeals for the Washington, D.C. Circuit ruled that the language in the Act indicated that the subsidies were only available in states which had established health insurance exchanges. That same afternoon, the 4^th District U.S. Court of Appeals in Richmond, Virginia handed down a ruling upholding the subsidies and indicating in the opinion that it was clearly the intent of the Congress to have the subsidies issued in every state in the Union.

Under the provisions of the ACA, states could opt to establish exhanges, which 23 have, or alternatively, the federal government would establish and operate exchanges in their stead in states which have opted not to. While most of the states which have opted not to establish exchanges have done so due to policy-maker opposition to the law, a few states, such as Delaware have done so for other reasons. Delaware entered into an agreement early in the implementation process to have the federal government substantially operate the exhange in Delaware – a decision which would place Delaware in the category of states in which subsidies are unavailable should the D.C. Court of Appeals decision be upheld.

Legal experts have indicated that, should the D.C. ruling be upheld, the provision allowing for a tax penalty for employers with 50 or more employees who do not provide health insurance to eligible employees, who ultimately receive subsidies for individual purchase, would not be enforceable. In essence, they predict that it would gut the Act.

This legislation has been rife with flaws and unintended consequences since its passage. Part of it can be blamed on the manner in which it was drafted and hurried through the legislative process by Democrats who realized that they would be losing the House majority in the 2010 elections. In fact, many observers argue that the manner in which leadership handled the legislation in the House of Representatives in 2010 is substantially to blame for the difficult environment and lack of meaningful progress in the Congress.

Unfortunately, this legislation has become totemic. By and large, Republicans in the Congress detest the legislation and seek its repeal. In fact, the United States House of Representatives has voted more than 50 times since the beginning of 2011 to repeal the Act. Democrats in the House, and in the Senate, which they still control for the time being, have responded by being exceedingly defensive and refusing to public admit the profound flaws and unintended consequences which have arisen from this legislation. Democratic leadership and many members see the protection of the Obama Administration's signature domestic policy achievement as a political imperative. This has led to a situation where one side cannot admit that there is anything right with the legislation and the other cannot admit that there is anything wrong with it.

Even a cursory review of the fashion in which the legislation was handled and passed in 2010 is enough to demonstrate just how little regard either side has for the input and rights as duly elected officials of the other.

Democratic leadership and the Administration have persisted in insisting that Americans are reaping the benefits of the law and that its popularity is on the rise. National polls suggest otherwise. A recent CNN Research poll indicates that Americans continue to oppose the law 59% to 40%. The debacle resulting from the poorly handled launch of the enrollment website, Healthcare.gov may have no dubt contributed somewhat to this sentiment; however, the fact that numerous middle class Americans and small business owners saw premiums increase substantially under the Act and the obvious impact its provisions are having on full time employment and hours worked by individual employees in a number of industries are also likely sore points.

The Democrats continue to whistle past the graveyard, while the Republicans hold out for a hoped for series of electoral victories in November which would deliver the Senate to the GOP. Even if the Republicans do gain a majority in the Senate (they will almost certainly hold the House), their majority will likely be far from cloture-proof.

According to the polling-based analysis on the Real Clear Politics site, there are 9 seats which are considered “toss-ups” with the others being either “safe” or not on the ballot. The current composition of the Senate is 53 Democrats, 2 Independents who caucus with the Democrats and 45 Republicans. Therefore, the Republicans will need to pick up six seats to gain a majority. As it stands, they are a long way from 60 votes (the number needed to end debate on a measure). Even if they gained a majority and were able to put together 60 votes to pass an ACA repeal, the president would almost certainly veto it and they would be hard pressed to get to the 2/3 (66 votes) required for a veto override.

While the House, which is currently comprised of 234 Republicans and 199 Democrats, with two vacancies, will very likely be Republican again after November, without an effective solution in the Senate, all they can do is continue to pass ineffective repeal bills in the House.

What both parties really need to do is get down to the business of fixing problems with the law. As things currently stand, health insurance premiums are on the rise for many Americans as direct result of a law that has the word “affordable” in its title; many employers are significantly reducing or eliminating full-time employment to avoid the tax penalty and small business are evaluating whether to expand their full time workforce given that adding that 50^th employee will bring their company under the provisions of the coverage mandate. There is also the problem of the curious lack of real cost containment measures in the law.

Most on either side of the debate would agree that expanding the access to affordable and quality insurance is a worthy policy goal. What upsets many who have been adversely impacted by this law is the approach taken by proponents. A hastily cobbled-together bill which was even more hastily passed was intended to rework fully one-sixth of our nation's economy. Did anyone really believe that this process would go smoothly? Perhaps, then-Speaker Pelosi, who famously remarked that they needed to pass the bill, then they would read it, should have taken the time to read it before the Congress passed it back in 2010...

A New Day in America, A New Day at Home

January 20, 2009 will long be remembered as one of the most significant days in the political and governmental history of our republic and our State. Today, we inaugurated the first African American President of the United States and the first Vice President of the United States from Delaware.

Regardless of we supported in the general election, today, we are all Americans and can all be proud of the fact that we are who we say we are - the shining city on a hill, where hard work, integrity and determination can overcome any obstacle.

God Bless the United States of America.

Centre of equal daughters, equal sons,
All, all alike endear'd, grown, ungrown, young or old,
Strong, ample, fair, enduring, capable, rich,
Perennial with the Earth, with Freedom, Law and Love,
A grand, sane, towering, seated Mother,
Chair'd in the adamant of Time.

Walt Whitman "America"

145th General Assembly, Week One

Change, the only constant

On Tuesday, January 13, the 145th General Assembly began as all do, with the swearing in of reelected and newly elected members. The largely ceremonial day was undergirded by change. Offices had been moved, personalities considered to be a part of the fabric of the institution were absent due to electoral misfortune. New legislators gathered for their first day of session with proud supporters and family members looking on.

In the House, the Democrats had moved to first and second floor offices as the Republicans, having lost the majority, moved their offices to the basement. As recently as 2003, the House was comprised of 29 Republicans and 12 Democrats. Shifting demographics and a 2008 Democratic Party electoral tide has brought a 25-to-16 Democratic majority. Six Republican incumbents lost their seats, including the longest serving speaker in Delaware history, Terry Spence. Bob Gilligan (D-Sherwood Park), the longest serving member of the General Assembly, elected in 1972, was elected speaker. Representative Pete Schwartzkopf (D-Rehoboth) and Representative Valerie Longhurst (D-Bear) were elected majority leader and majority whip respectively. The Republicans chose former majority leader Dick Cathcart (R-Middletown) and Representative Dan Short (R-Seaford) as minority leader and minority whip.

In the Senate, the majority shifted from a 13-to-8 to 16-to-5 as the Democrats picked up three seats. Chairmanships remained largely unchanged. New to the upper house are former House member Bethany Hall Long (D-Back Creek), Michael Katz, MD (D-Centreville) and Brian Bushweller (D-Dover North).

Governor-elect Markell and Lieutenant Governor-elect Denn will be sworn in on January 20, immediately after midnight. They will then travel to Washington for Inauguration of President-elect Barak Obama and Vice President-elect Joe Biden. There will be a ceremony to celebrate the gubernatorial inauguration on January 21 in front of Legislative Hall.

Fiscal Challenges

The 145th General Assembly faces the greatest economic challenges a Delaware legislature has confronted in decades. The structural shortfall (difference between the budget and projected revenue) for Fiscal Year 2010 is currently at $560 million. With the problems in the broader economy, it is likely that tax revenue will continue to trend downward during the course of the session. There are considerable number of new faces in Dover, many of whom will be looking to experienced hands such as Senate chair of the Joint Finance Committee, Nancy Cook and Speaker Bob Gilligan. There is much discussion among observers of the possibility of tax increases and even layoffs as the General Assembly and the Markell Administration seek to meet the State’s constitutional requirement for a balanced budget.

Card Check Resolution Introduced in the General Assembly

House Concurrent Resolution 1 (145th General Assembly) was introduced on January 6 and placed in the House Administration Committee. The resolution urges the 111th Congress to pass the Employee Free Choice Act, also known as “Card Check”. This legislation would eliminate the secret ballot requirement in union organizing in the workplace. The secret ballot is essential to protecting the privacy and political rights of Americans, whether exercised in a civic or private context. We oppose both House Concurrent Resolution 1 and the federal legislation that the resolution is designed to promote.

We strongly our members to contact their state legislators to express opposition to House Concurrent Resolution 1 and the members of Delaware’s Congressional Delegation in order to ask them to vote against the Card Check bill, or as its proponents have titled it: the Employee Free Choice Act. In the U.S. House, this legislation is H.R. 800. Its companion bill in the Senate is S. 1041.

For more information about the legislation, visit the following website: http://www.uschamber.com/issues/index/labor/cardchecksecrbal.htm

To find out who represents you in Dover call the New Castle County Department of Elections at (302) 577-3464. For your legislators’ contact information, visit http://legis.delaware.gov/.

The Wilmington office contact information for members of the Delaware Congressional Delegation is as follows:

U.S. Senator Thomas R. Carper
301 N. Walnut Street
Suite 102L-1
Wilmington, DE 19801
(302) 573-6291
http://www.carper.senate.gov/

U.S. Senator Edward E. “Ted” Kaufman
1105 N. Market Street
Suite 2000
Wilmington, DE 19801
(302) 573-6345
http://www.kaufman.senate.gov/

U.S. Representative Michael N. Castle
201 N. Walnut Street
Suite 107
Wilmington, DE 19801-3970
(302) 428-1902
http://www.castle.house.gov/

Republican Tom Kovach Prevails in 6th Representative District Special Election

On Saturday, December 20, Republican Tom Kovach faced Democrat Mike Migliore to fill the seat of Diana McWilliams (D), who resigned her seat after the election to take a job in New Mexico. Kovach received 1,540, or 51.2 percent, of votes cast Saturday. Migliore received 1,467, or 48.8 percent.

Representative-elect Kovach is a partner with the law firm of Parkowski, Guerke and Swayze. Mr. Migliore is an attorney with the firm of Stradley Ronon and a House Democratic Caucus attorney when the legislature is in session.

The Republican win denies the Democrats a veto-proof 3/5 majority in the House. A 3/5 majority would also have allowed the majority to pass revenue legislation without any minority caucus votes.

The Latest

Markell Visits NCC Chamber Incubator on December 9:

On December 9, Governor-Elect Markell met with Mark Kleinschmidt, Pete Bailey, Carmen Facciolo, Bob Chadwick and Joe Fitzgerald to discuss economic development and tour the Emerging Enterprise Center. We are encouraged by our initial discussions with the governor-elect.

State Revenue Forecasts Continue to Fall:

During the course of the past month, revenue forecasts for FY 2010 have declined by an additional $100 million. At the November meeting of the Delaware Economic and Financial Advisory Council (DEFAC) it was stated that the structural shortfall expected during the next fiscal year is expected to exceed $500 million. DEFAC will meet this afternoon at 3 p.m. to release the latest forecasts. Difficult choices lie ahead.

Governor-Elect Markell Makes a Number of Key Appointments: From the standpoint of the business community, Governor-Elect Markell’s appointments are encouraging. Former Happy Harry’s CEO and past State Chamber chairman Alan Levin has been chosen to lead the Delaware Economic Development Office. Deputy State Treasurer Ann Visalli has been appointed the director of the Office of Management and Budget and former DuPont Company CFO Gary Pfeiffer has been chosen as secretary of finance. The new administration will need all of the financial and business acumen it has in order to confront the financial problems facing our state.

WDEL carried the story this morning that Dennis Rochford has reconsidered his acceptance of the chief of staff position with the Markell Administration. Mr. Rochford is a former NCC Chamber of Commerce board member and current president of the Maritime Exchange for the Delaware River and Bay.


Workforce Housing Legislation:

This continues to be a highly controversial issue. Originally enacted last February with a unanimous vote, Ordinance no. 07-150 amended the Unified Development Code to provide incentives for developers to develop housing for low and moderate income families, the ordinance soon ran into considerable opposition as plans were being filed in accordance with its provisions.

Opponents of the ordinance are generally concentrated in southern New Castle County and cite concerns about the quality of housing to be constructed, the impact of schools, roads and other infrastructure and the effect that they believe the legislation will have on the quality of life in their area.

Only one member of the seven members of Council on the ballot in the general election had opposition. The issue spilled over to the state legislative races. Representative Dick Cathcart and other legislators and candidates addressed large gatherings in their districts in opposition to the ordinance.

The initial version of the ordinance proposed in late 2007 would have required mandatory set-asides for “workforce housing”, an approach opposed by the New Castle County Chamber of Commerce and other business groups. We favored a market-based approach employing incentives to builders willing to meet the demand for moderately priced housing. The Chamber held a number of meetings with members of the Coons Administration, the original sponsor of the proposal (Councilman Hollins) and members of the business community where we encouraged policymakers to adopt a voluntary approach. The mandatory approach did not address one of the root causes (other than low interest rates and a real estate bubble) – regulatory costs.

One of the better summaries of this ordinance to be found was put out by Fox Rotshchild, LLP it can be found at http://www.foxrothschild.com/Newsstand/News.aspx?id=8424. It is likely that the Coons Administration will come back in January with a number of changes to the ordinance designed to address the opponents concerns. For a summary of concerns from the opposition, visit: http://www.stayoutofmypocket.com/.

Any legislative changes will not affect plans already in process. Civic opponent claim that they intend to halt existing development plans in court. The Chamber has expressed concerns to members of the administration and Council over the need for certainty in the development process.


Special Election in the 6th Representative District:

Michael Migliore an attorney with Stradley Ronon is running as the Democratic candidate to replace Diana McWilliams in the 6th Representative District seat she recently vacated to take a job in New Mexico. His opponent is Republican Tom Kovach. Mr. Kovach is an attorney with Parkowski Guerke and Swayze. The special election will be held this Saturday, December 20.

Election 2008 Results and News on the State and County Budgets

Election 2008 in Delaware
November 4, 2008 was the most notable election in recent Delaware history. Our nation elected its first African American President Barack Obama and, along with him, our own Joe Biden as Vice President. The Obama/Biden ticket took Delaware 62% to 37% for McCain/Palin, with the remaining 1% being divided among third party candidates. Vice President-elect Biden was also on the ballot for his United States Senate seat. In that race, he defeated Republican Christine O’Donnell 65% to 35%. Nationally, the Obama/Biden ticket won 52% of the popular vote (65,101,106) and 365 electoral votes versus McCain/Palin’s 46% of the popular vote (57,168,270) and 162 electoral votes. The remaining two percent of the vote went to third party candidates.

In Congress, the Democrats retained and increased their majorities in both the House and Senate. In the U.S. House of Representatives the Democrats picked up 20 seats, increasing their number to 254 seats versus the Republicans current 173. Four races remain to be settled. Two will be decided in a December runoff in Louisiana.

At the time of this writing there is a seven seat gain for Democrats in the Senate. 2 U.S. Senate races are yet to be decided: Georgia and Minnesota. The Democrats gain brings their number to 55 Democrats. Georgia will hold a runoff election between incumbent Republican Saxby Chambliss and Democratic challenger Jim Martin on December 2. Georgia law requires one when no candidate in a race garners more than 50% of the vote. Third party challengers took enough from each candidate to require the runoff. In Minnesota a recount is under way to settle the race between incumbent Republican Norm Coleman and Democratic challenger Al Franken. In preliminary results, each received 42% of the vote with third party challenger Dean Barkley picking up the remainder. Coleman has seen his lead shrink from more than 700 votes to 239 as more absentee ballots and polling place errors are corrected. If the Democrats pick up the remaining two seats, they would technically be 2 votes short of cloture (the ability to end debate/filibuster on a measure) and would need to rely on the two independents in the Senate, Joe Lieberman of Connecticut and Bernie Sanders of Vermont to vote with them to attain cloture. Observers are closely watching Lieberman as he is currently somewhat on the outs with Democratic leadership and the Democrats in general following his endorsement and active support of the McCain/Palin ticket. Senator Lieberman will continue to caucus with the Democrats and will retain his chairmanship of the Homeland Security Committee, but will lose his chairmanship of a subcommittee in a compromise reached with Democrats this week.

At the State level there were few surprises. Democratic candidate and current state treasurer Jack Markell handily defeated his Republican opponent retired Superior Court judge William Swain Lee with 67.5% of the 395,155 votes cast. In the lieutenant governor’s race, Democrat Matt Denn prevailed receiving 61% to Charlie Copeland’s 39%. The Democratic trend continued in the race for insurance commissioner with Karen Weldin-Stewart garnering 57% of the vote defeating her Republican opponent John Brady (41%) and Tom Savage (1.5%).

In the Delaware General Assembly the House majority changed from Republican to Democrat for the first time in 26 years. The House changed from 23-18 Republican majority to a 25-16 Democratic majority. Incumbents, Bob Valihura (R-Talleyville), Donna Stone (R-Dover), Nancy Wagner (R-Dover), Greg Hastings (R-Millsboro), Vince Lofink (R-Caravel Farms) and House Speaker Terry Spence (R-Stratford) all lost their seats to challengers. Dennis E. Williams defeated Bob Valihura with 51% of the vote. Darryl Scott, a school board member from the Capital School District, defeated Nancy Wagner with 53% of the vote. Brad Bennett will replace Donna Stone after receiving 57% of the vote. John Atkins will regain his House seat as a Democrat after defeating Greg Hastings with 53% of the vote. In a hotly contested race in Bear, Earl Jacques received 48.7% of the vote to Vince Lofink’s 48.3% (a third part candidate, James Spencer, received 3%). In another example of this year’s electoral trend, Mike Barbieri defeated the incumbent House Speaker, Terry Spence with 53% of the vote. Representative Pam Thornburg regained her seat following a code-mandated recount nearly 48 hours after the polls closed (the election was decided by less than a percent). The original count showed Charles “Trey” Paradee winning with 50.1% of the vote.

Democrats expanded their 36 year-long majority control of the Senate by three seats. Prior to the election, the body was comprised of 13 Democrats and 8 Republicans. Afterward, there are 16 Democrats and 5 Republicans. Physician and Democratic candidate Michael Katz was elected to the 4th District Senate seat vacated by Charlie Copeland with 50.7% of the vote versus his Republican opponent, John Clatworthy. Former State Representative Bethany Hall-Long won retiring 10th District Senator Steve Amick’s seat with 64.9% versus Republican Jim Weldin’s 35.1%.

At the New Castle County government level, there was only one contested Council seat out of the 7 on the ballot. County Executive Chris Coons also ran unopposed in the general election after defeating his predecessor, Tom Gordon, in the September 9 primary.

In the City of Wilmington, Mayor Baker was unopposed in the general election. Former district councilman Norman Griffiths (D) defeated Herman Holloway, Jr. who ran on the Republican slate for that office.

Budget Shortfall Widens Following November 17 DEFAC Meeting
Due to a substantial slowdown in economic activity, State tax revenue continues to fall. At the November 17 meeting of the Delaware Economic and Financial Advisory Council, an addition $130 million shortfall for the current budget year (FY 2009) was projected. In order to address the initial $270 million shortfall for FY 2009 which existed in the spring, the General Assembly enacted budget cuts and a $144 million tax and fee package. By the September DEFAC meeting, a projected $39 million decline had reduced the effect of that package to about $105 million. The latest forecast is even worse indicating a $130 million gap unless significant cuts are undertaken. Given the current economic climate, many observers expect things to get worse before they get better.

In response to the news, Governor Minner ordered a hiring freeze and an additional 7% mid-fiscal year cut in agency budgets. She also ordered an across the board 15% reduction in her recommended budget for FY 2010.

At the same meeting, revenue projections for FY 2010, which begins on July 1, 2009, were lowered by some $303.7 million. The 3.5% decline in revenues for next year will likely amount to a $500 million gap which legislators will need to close for next fiscal year by June 30.

At the end of session in June, the following items were part of the end of session tax and fee package:

• An increase in the flat annual tax for limited liability companies, limited partnerships and general partnerships from $200 to $250 ($24 million in additional revenue projected). (House Bill 520)
• An increase in the franchise tax for corporations ($28 million in additional revenue projected in year 1 and $24 million per year thereafter) (House Bill 519)
• A shift in funding whereby the racetracks will assume $1 million in funds provided by the State to the breeder’s fund – monies used to promote in-state racing. (House Bill 514)
• A reduction in a projected revenue sharing increase to the City of Wilmington: the scheduled increase in UCC fees paid by the Department of State to the City of Wilmington will be reduced from 30% to 23%. This is expected to yield a 41.2 million positive impact to the general fund. (House Bill 516)
• A partial rollback of the gross receipts tax cut of 2006. Those companies benefiting from the increased exemption of $80,000/month which originally took 1,500 small businesses off the rolls will not be affected. Automakers will also be exempted from the rollback. ($14 million in revenue projected). (House Bill 513)
• An acceleration of Insurance Premium Tax payments from four equal payments in April, June, September and December to 50% in April, 20% in June, 20% in September and 10% in December, a move which will allow the State to book more of the revenue derived from the tax in FY 2009. (Senate Bill 333)
• A measure shortening the dormancy period before the State can claim abandoned (escheatable) property to 3 years (Senate Bill 334); and
  Legislation allowing the State to escheat monies from unclaimed pari-mutuel tickets at the race tracks after one year (SB 335).
  

The initial revenue package included a tax on hospital receipts (House Bill 512) and an increase in alcohol excise taxes and licensing fees (House Bills 517 and 518). Those items failed to garner sufficient support in the face of stiff opposition from the alcoholic beverage industry and the hospitals. The hospital tax was expected to generate an additional $15 million in revenue while the excise tax and license fee increases combined were projected to raise $5.1 million. The hospital tax was not considered by either chamber. The alcohol-related measures passed the House but failed in the Senate. Funding to replace the hospital tax revenue was taken from an unexpected $63 million corporate tax payment that the State of Delaware received in mid-June. Following the failure of the alcohol excise tax and license fee increase measures, an addition $5.1 million was cut from the bond bill (capital budget) in the early hours of July 1.

Many observers expect the General Assembly is expected to revisit the alcohol and hospital taxes and to take a hard look at a variety of possible tax and fee increases in order to stem the developing FY 2009 budget gap.

We at the New Castle County Chamber of Commerce are deeply concerned about the prospect of tax and/or fee increases during a time of economic turmoil. Greater emphasis than ever must be placed on finding efficiencies and cutting the State budget. In 1998, the State budget came to approximately $1.8 billion. The State’s FY 2009 budget came to $3.4 billion. That is a near doubling of the budget in the span of a decade! It took more than 200 years to get to $1.8 billion. The State of Delaware is the single largest employer in Delaware. This is unsustainable. Taking more money from the productive sector of the economy – i.e. the private sector – in order to sustain State spending is not the answer. Hard choices lie ahead.

County Government Faces Fiscal Trouble
County Executive Chris Coons recently announced a $30 million shortfall. Sharp declines in real estate transfer tax, property tax and fee-based revenue are cited. The county executive took the following steps:

•A hiring freeze for nonessential positions.
•Overtime allowed only for approved critical needs.
•Reductions in capital projects spending.
•Limits on travel and training.
•Prior approval for all contractual requests for spending.
•Reductions in major equipment and fleet purchases.

The county executive indicated that he will be seeking revenue enhancers that he termed “significant” in order to close the gap. Salaries, wages and benefits account for 75% of the county’s budget. The Chamber will also be casting a wary eye toward revenue enhancement proposals at a time when every available dollar is needed in the productive (private) sector of the economy.


Card Check
The prospects for “Card Check”, legislation which will allow for union organizing without a secret ballot, have significantly improved with the augmented Democratic majorities in the U.S. House and Senate. The New Castle County Chamber of Commerce opposes this legislation. The right to confidentiality and freedom from coercion is essential to a free and fair unionization process. The bill is likely to see action early in the next Congress. We will provide more information as this issue progresses.

Election 2008 in Delaware

November 4, 2008 was the most notable election in recent Delaware history. Our nation elected its first African American President Barack Obama and, along with him, our own Joe Biden as Vice President. The Obama/Biden ticket took Delaware 62% to 37% for McCain/Palin, with the remaining 1% being divided among third party candidates. Vice President-elect Biden was also on the ballot for his United States Senate seat. In that race, he defeated Republican Christine O’Donnell 65% to 35%. Nationally, the Obama/Biden ticket won 52% of the popular vote (65,101,106) and 365 electoral votes versus McCain/Palin’s 46% of the popular vote (57,168,270) and 162 electoral votes. The remaining two percent of the vote went to third party candidates.

In Congress, the Democrats retained and increased their majorities in both the House and Senate. In the U.S. House of Representatives the Democrats picked up 20 seats, increasing their number to 254 seats versus the Republicans current 173. Eight races remain to be settled. 2 will be decided in a December runoff in Louisiana. The remaining six are being reviewed by election authorities in the respective states: Alaska, Ohio, Virginia and California. Seven of the eight are currently in Republican hands.

At the time of this writing there is a seven seat gain for Democrats in the Senate. 2 U.S. Senate races are yet to be decided: Georgia, Minnesota and Alaska. The Democrats gain brings their number to 55 Democrats. Georgia will hold a runoff election between incumbent Republican Saxby Chambliss and Democratic challenger Jim Martin on December 2. Georgia law requires one when no candidate in a race garners more than 50% of the vote. Third party challengers took enough from each candidate to require the runoff. In Minnesota a recount is under way to settle the race between incumbent Republican Norm Coleman and Democratic challenger Al Franken. In preliminary results, each received 42% of the vote with third party challenger Dean Barkley picking up the remainder. Coleman has seen his lead shrink from more than 700 votes to 239 as more absentee ballots and polling place errors are corrected. If the Democrats pick up the remaining two seats, they would technically be 2 votes short of cloture (the ability to end debate/filibuster on a measure) and would need to rely on the two independents in the Senate, Joe Lieberman of Connecticut and Bernie Sanders of Vermont to vote with them to attain cloture. Observers are closely watching Lieberman as he is currently somewhat on the outs with Democratic leadership and the Democrats in general following his endorsement and active support of the McCain/Palin ticket. Senator Lieberman will continue to caucus with the Democrats and will retain his chairmanship of the Homeland Security Committee, but will lose his chairmanship of a subcommittee in a compromise reached with Democrats this week.

At the State level there were few surprises. Democratic candidate and current state treasurer Jack Markell handily defeated his Republican opponent retired Superior Court judge William Swain Lee with 67.5% of the 395,155 votes cast. In the lieutenant governor’s race, Democrat Matt Denn prevailed receiving 61% to Charlie Copeland’s 39%. The Democratic trend continued in the race for insurance commissioner with Karen Weldin-Stewart garnering 57% of the vote defeating her Republican opponent John Brady (41%) and Tom Savage (1.5%).

In the Delaware General Assembly the House majority changed from Republican to Democrat for the first time in 26 years. The House changed from 23-18 Republican majority to a 25-16 Democratic majority. Incumbents, Bob Valihura (R-Talleyville), Donna Stone (R-Dover), Nancy Wagner (R-Dover), Greg Hastings (R-Millsboro), Vince Lofink (R-Caravel Farms) and House Speaker Terry Spence (R-Stratford) all lost their seats to challengers. Dennis E. Williams defeated Bob Valihura with 51% of the vote. Darryl Scott, a school board member from the Capital School District, defeated Nancy Wagner with 53% of the vote. Brad Bennett will replace Donna Stone after receiving 57% of the vote. John Atkins will regain his House seat as a Democrat after defeating Greg Hastings with 53% of the vote. In a hotly contested race in Bear, Earl Jacques received 48.7% of the vote to Vince Lofink’s 48.3% (a third part candidate, James Spencer, received 3%). In another example of this year’s electoral trend, Mike Barbieri defeated the incumbent House Speaker, Terry Spence with 53% of the vote. Representative Pam Thornburg regained her seat following a code-mandated recount nearly 48 hours after the polls closed (the election was decided by less than a percent). The original count showed Charles “Trey” Paradee winning with 50.1% of the vote.

Democrats expanded their 36 year-long majority control of the Senate by three seats. Prior to the election, the body was comprised of 13 Democrats and 8 Republicans. Afterward, there are 16 Democrats and 5 Republicans. Physician and Democratic candidate Michael Katz was elected to the 4th District Senate seat vacated by Charlie Copeland with 50.7% of the vote versus his Republican opponent, John Clatworthy. Former State Representative Bethany Hall-Long won retiring 10th District Senator Steve Amick’s seat with 64.9% versus Republican Jim Weldin’s 35.1%.