NCC Chamber of Commerce Government Affairs Blog

A New Day in America, A New Day at Home

2009-01-20T11:01:00.000-08:00

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

2009-01-19T11:52:00.001-08:00

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

2008-12-22T13:32:00.000-08:00

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

2008-12-15T11:26:00.000-08:00

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

2008-12-01T10:27:00.000-08:00

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

2008-11-21T14:09:00.000-08:00

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%.

November 4, 2008 Landmark Day in U.S. History

2008-11-10T12:56:00.000-08:00

This past Tuesday was the culmination of a truly historic election. Throughout our nation's history certain elections standout as markers of major cultural and systemic shifts. Some previous examples follow:

1800: our country's first peaceful transition of power as Jefferson defeated Adams, with the help of Bayard of Delaware who cast the deciding vote as the election ended up in the House)
1860: Lincoln's election as the first Republican president
1932: FDR's election
1960 Kennedy's election
1974: Watergate
1984: "Morning in America"
1994: the Contract with America and the reinvigoration of American conservatism

Add to that list 2008 and the election of Barack Obama as president of the United States and Joe Biden as his Vice President. It is important to note that Americans of good character, intelligence and good will supported both candidates for president this year. Both John McCain and Barack Obama are extraordinary men and followed singularly remarkable paths to their respective parties' nominations. Both are patriots whose inclination is to put the interests of our great nation before their own.

Now that the election has ended and the slings and arrows from both sides have ceased, the significance of President-Elect Obama's election can be acknowledged. In the words of his worthy former opponent Senator John McCain:

"Senator Obama has achieved a great thing for himself and for his country. I applaud him for it, and offer in my sincere sympathy that his beloved grandmother did not live to see this day, though our faith assures us she is at rest in the presence of her creator and so very proud of the good man she helped raise.

Senator Obama and I have had and argued our differences, and he has prevailed. No doubt many of those differences remain. These are difficult times for our country, and I pledge to him tonight to do all in my power to help him lead us through the many challenges we face.

I urge all Americans who supported me to join me in not just congratulating him, but offering our next president our good will and earnest effort to find ways to come together, to find the necessary compromises, to bridge our differences, and help restore our prosperity, defend our security in a dangerous world, and leave our children and grandchildren a stronger, better country than we inherited."

Senator McCain meant what he said. That is the beauty of our democracy. The peaceful transition of power after a hard fought campaign is the continuation of a tradition as old as our republic and an example set by no less than John Adams and Thomas Jefferson who, after a lengthy and contentious campaign, saw an electoral college deadlock broken in the House of Representatives.

Patriotic Americans can and will still argue about the appropriate role and size of government, the correct approach to providing our children education and access to quality health care, America's role in the world and the proper place of religion in the public sphere. These important and robust debates will outlive many who occupy the national stage today. One thing that is not open to debate is that school children throughout the land can honestly be told by their teachers, parents and guardians: "You could grow up to be president of the United States." God Bless America.

Our heartfelt congratulations go to President-Elect Obama and Vice President -Elect Biden and the Obama and Biden families. We also gratefully acknowledge the service of Senator John McCain.

Delaware is Front and Center in 2008 Contest

2008-09-05T11:36:00.000-07:00

Delaware's senior United States Senator, Joseph R. Biden, Jr. has been nominated for the vice presidency on the Democratic ticket. The Chamber is fortunate to have a diverse and politically engaged membership many of whom ardently support the Obama/Biden ticket and many of whom strongly support the McCain/Palin candidacy.

Regardless of where we fall in the political spectrum, we can all agree that having a Delawerean nominated for one of the two highest offices in the land for the first time in the history of our great nation is a positive development for the First State. Senator Biden's nomination is an acknowledgement of a truly remarkable career in the United States Senate.

Delaware's involvement does not end there. Both Obama's and McCain's campaign managers attended the University of Delaware. In fact, Obama's campaign manager, David Plouffe, grew up in Delaware and is a graduate of St. Mark's High School. Mr. Plouffe attended the University as a political science major between 1983 and 1988. McCain's campaign manager, Steve Schmidt, also a political science major, attended the University between 1988 and 1993.

Election Season is Here

2008-09-05T07:09:00.000-07:00

With the Democratic and Republican conventions behind us and Tuesday's primary election, we are finally in the heart of election season. Given the seemingly interminable presidential primary process and the robust Democratic gubernatorial primary here in Delaware - it feels to many of us as though it has been election season for the past 18 months.

Tuesday, September 9 is the primary election. There are a number of key races for both parties. In the Democratic primary: Lt. Governor John Carney and State Treasurer Jack Markell are vying to be the candidate for governor. Gene Reed, Karen Weldin Stewart and Tom Savage are running to be their party's candidate for Insurance Commissioner. County Executive Chris Coons will face his predecessor Tom Gordon. County Council President Paul Clark will face civic activist Bill Dunn. Wilmington Mayor Jim Baker is contending with Robert Bovell; while Councilmen Theo Gregory and Norman Griffiths both run for city council president. There are also a number of legislative races on the primary ballot at the federal, state, county and local level. In the Republican primary for governor, former Superior Court Judge and prior Republican candidate Bill Lee will face Mike Protack. For a complete listing of primary election candidates in New Castle County, please visit: http://elections.delaware.gov/filed.shtml.

To locate your polling place or get additional information, call the New Castle County Department of Elections 302.577.3464.

144th General Assembly Ends - Budget Balanced During Early Hours of July 1

2008-07-09T13:48:00.001-07:00

The 144th General Assembly ended early on the morning of July 1 following a session-long effort to balance the budget. Going into the last month of session, the General Assembly was still working to close a $217 million budget gap for FY 2009. In order to close the gap, budget-writing legislators, leadership and representatives of the administration had agreed upon a solution involving one-half cuts and one-half tax and fee increases (or as they are called in Dover: “revenue enhancers”). That solution was complicated in the late-going by the rejection of about $20 million in tax and fee increases during the last few days of session.

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.

Ultimately, legislators approved a $3.3 billion operating budget, a $601.7 million capital budget and a $45 million grant-in-aid bill. $207.8 million of the capital budget is will go toward school construction. The grant-in-aid bill, a vehicle used to provide yearly financial assistance to fire companies and other non-profit agencies in the State, was reduced by about 8% over FY 2008.

Following are the major revenue enhancers approved by the General Assembly and signed by the governor:

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 teh 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).

4 Session Days Left, FY 2009 Budget Balanced, Issues Abound

2008-06-23T07:23:00.000-07:00

There are only four session days left before June 30. Following is information regarding some of the issues we have been following. For more information about this legislative session and its outcome, check out our End of Session Legislative Update in July or contact Joe Fitzgerald with questions at (302) 294-2060 or fitzgeraldj@ncccc.com.

Legislators Arrive at Balanced Budget
Facing a shortfall of some $373 million across fiscal years 2008 and 2009 at the end of April, the Bond Bill Committee, Joint Finance Committee and administration officials began the arduous process of cutting projects and programs. To address the 2008 gap policymakers undertook a series of reversions of unused funds on the operating side combined with cuts, reversions and postponements in the capital budget. FY 2009 required a combination of cuts and tax and fee increases to get the job done.

Among the new taxes/fees assessed in order to close the budget gap are the following:

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)
An increase in the franchise tax for corporations ($28 million in additional revenue projected in year 1 and $24 million per year thereafter)
The racetracks will assume $1 million in funds provided by the State to the breeder’s fund – monies used to promote in-state racing.
The slots venues will assume the State’s $3.5 million share of the cost of having trademarked slot machines.
The slots will be required to escheat rather than keep unclaimed winnings ($3 million per year projected).
There will be 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).
An increase in alcohol licensing fees and excise taxes is expected to generate an additional $5.1 million.
A provider tax on hospitals designed to increase the Medicaid reimbursement that Delaware received from the federal government is expected to generate between $15 and $40 million. Hospitals and business groups, including the County Chamber, have expressed concerns about this proposed tax. It is designed to increase Medicaid reimbursement from the feds to the State, providing the State additional funding for Medicaid along with the ability to make the hospitals whole. The key issue is that policymakers cannot guarantee that the mechanism put in place by the General Assembly will work as intended. Should it not, hospitals would be on the hook for a tax of 2.9% of receipts which would be passed along in the form of higher health care costs.

On the Friday before the June 16 meeting of the Delaware Economic and Financial Advisory Council (DEFAC), the State discovered an unexpected payment of $63 million in corporate taxes. Those funds were directed toward the capital budget. Unlike in many other years, the budget will be in its final legislative form this week, in advance of June 30.

Budget growth was held to 1.89% out of necessity. The Chamber is increasingly concerned about the growth in State spending. In the early 1990’s, the budget had not yet reached the $1 billion mark yet. As recently as 1998, the FY 99 budget was $1.8 billion. We have come close to doubling the budget in a decade. State government is the largest single employer in Delaware. These trends cannot be sustained indefinitely. During the period between sessions, we will undertake a study of budget growth during the past two administrations, allowing for health care inflation, general inflation and growth in nondiscretionary spending.

2 Minimum Wage Bills Pass the Senate, Outcome Uncertain in the House
Two different minimum wage bills have passed the Senate within the last two months. The first, Senate Bill 204, would increase the minimum wage from $7.15 per hour to $7.75 per hour effective March 1, 2009 and from $7.75 per hour to $8.25 per hour effective March 1, 2010. It passed the Senate in late April and was released from the House Labor Committee last week. The second, Senate Bill 280, would increase Delaware’s tip credit allowance incrementally until it reaches 50% of the applicable minimum wage. The minimum cash wage for employees who receive tips would increase from the current $2.23 per hour to: $2.51 per hr. on 01-01-09, $2.86 per hr. on 0l-0l-10, $3.32 per hr. on 0l-0l-11, and $3.57 per hr. on 01-01-12. SB 280 passed the Senate on June 18 and is currently awaiting committee assignment in the House.

The Chamber has actively opposed both pieces of legislation and will continue to do so. Our opposition to these bills stems from two sources: 1) our belief, grounded in empirical evidence, that wages are best determined by market forces rather than government. 2) Delaware businesses, like those in our sister states, are facing the most challenging economic environment since the 1970s. Increased operating costs due to increased payroll costs will hurt the small business owner. This comes at a time of increased costs for electric, gas and other business supplies.

We have taken pains to point out to legislators that in an environment where they are already raising taxes and fees on Delaware businesses, statutorily increasing their labor costs worsens the already heavy burden on businesses and sends the wrong message.

Recycling Fee Legislation Fails in the Senate Due to Concerns About Increasing Fees
House Bill 159, legislation which would have imposed a $3 per ton fee on all solid waste (excluding recyclables) collected and/or disposed of in Delaware. Those who collect solid waste in Delaware and dispose of it out of state would also have paid the assessment to support the Delaware recycling initiatives. The fund was to be administered by DNREC and used to help municipalities with start-up costs, fund private sector initiatives, support an education and outreach program and fund an assessment of the potential for increased commercial waste recycling. None of the funding derived from the program would have gone to the Delaware Solid Waste Authority.

The idea behind the legislation was to establish a statewide curbside voluntary recycling program. It failed in the Senate due to concerns about assessing fees on haulers which would have been passed along to homeowners in the form of higher costs. Haulers are already passing on a fuel surcharge.

Legislation to Abolish Employment at Will Doctrine in Delaware Remains in House Committee
Representative Hazel Plant’s legislation to eliminate the doctrine of “Employ at Will” in Delaware law and replace it with a legal requirement that an employee can only be terminated with “good cause” remains in the House Labor Committee. The New Castle County Chamber of Commerce is strongly opposed to this legislation as it would create labor market rigidity, higher structural unemployment and act as a disincentive for employers to hire. Chamber lobbyist Joe Fitzgerald entered a letter of opposition signed by Chamber President Mark Kleinschmidt into the record.

Regional Greenhouse Gas Initiative Legislation Passes Senate – Awaits House Action
Senate Bill 263 (McDowell and Thornburg) is legislation would provide the Department of Natural Resources and Environmental Control the legal authority to participate in the RGGI CO2 cap and trade program. Revenues generated by the auctioning of credits would be directed toward “public benefit purposes”. These would include the Sustainable Energy Utility for the promotion of energy efficiency and renewable energy technologies, programs designed to help low income ratepayers, greenhouse gas reduction efforts, etc. The Chamber does not oppose the legislation; however, it does oppose several attempts to attach overreaching amendments with harmful economic consequences for our State.

The Regional Greenhouse Gas Initiative (RGGI) is a regional initiative by states in the Northeastern United States region to reduce greenhouse gas emissions. A central part of the initiative is a cap and trade program for emissions from power plants. Ten states currently participate in the initiative. Pennsylvania, which is a major coal producer and manufacturing state, only participates as an observer. Participating States: Maine, New Hampshire, Vermont, Connecticut, New York, New Jersey, Delaware, Massachusetts, Maryland, Rhode Island
Senator McBride introduced 2 amendments which would have negatively impacted Delaware generators and the Valero Delaware City Refinery. He agreed to strike both following concerns expressed by business organizations and organized labor representatives. Senator Bunting subsequently introduced Senate Amendments 3 and 4. Bunting’s amendments had the same operative effect as McBride’s. It should be noted that the other participating states have preserved the exemption (generators exporting 10% or less of their power to the grid) that Valero is seeking to preserve in Senate Bill 263.

The Chamber opposed the amendments, submitting a signed statement to the Senate and lobbying individual Senators, for the following reasons:

Senate Amendment 3, which would have required that the Secretary auction 100% of allowable credits available to our state, would have placed Delaware generators at a substantial disadvantage to those in other states. It should be noted that the Commonwealth of Pennsylvania is not participating in the Regional Greenhouse Gas Initiative and that their exclusion from this regime further exacerbates this competitive disadvantage. This amendment was defeated during Senate consideration of the legislation on June 11.

Senate Amendment 4, which would require that all fossil fuel powered electricity generation units generating 25 or more megawatts participate in the Regional Greenhouse Gas Initiative CO2 allowance program, would have had profoundly negative economic effects in our state. By eliminating the exemption for generators who export 10% or less to the electrical grid, the legislation would place the Valero Delaware City refinery at a competitive disadvantage to those in surrounding states and cause the cancellation of major capital investments at location in the hundreds of millions of dollars. Enactment of SB 263 as amended by Senate Amendment 4 would have had a direct and measurable impact on our local economy. Some examples follow:

The loss of a gasifier reliability project at the Delaware City Refinery and 300 jobs (600,000 contract man hours);
The loss of most strategic capital at the refinery and an additional 500 jobs (1,000,000 man hours per annum); and
The loss of $200-250 million of annual investment in the facility slated over the course of the next 3-to-5 years.

Senate Amendment 4 was stricken by its sponsor prior to Senate consideration.

In the House, Representative Kowalko has introduced legislation which would require that 90% of the allowable credits be auctioned immediately with the other 10% to be phased in by 2014. House Amendment 1, though a very minor improvement over Senate Amendments 1 and 3, is still problematic.

Most can agree that reducing greenhouse gases is a good thing. It should be enough that the State of Delaware has elected to participate in this initiative – driving up energy costs and hampering our State’s competitiveness in this economic environment to satisfy constituencies with no role in job creation nor any plans to offset the potential economic impact of such policies is not advisable.

Package of Insurance Legislation Introduced – Chambers Supports Several Measures
A package of legislation designed to improve the accessibility and affordability of health insurance in Delaware was introduced in the House this month:

House Bill 460 (Reps. D. Short and Hudson) would provide tax deductions to small employers who contribute toward providing health insurance for their employees. Small employers making less than $50,000 in gross income per annum would be entitled to a $1500 deduction. Those earning between $50,000 and $99,999 in gross income would be able to claim a $1,000 deduction. While the Chamber supports this legislation as a step in the right direction, the income limits should be raised and possible consideration given to tying the amount of the deduction to the number of employees insured.

House Bill 476 aims to increase the number of Delaware children enrolled in the State Children’s Health Insurance Program by requiring the Department of Finance, Division of Revenue to use income data to identify Delaware families eligible to coverage under SCHIP and forward those families information on how to apply for benefits. A representative of the Department of Health and Social Services testified in committee that there are some concerns on the part of the State regarding a potential sharp increase in enrollment as the SCHIP program is a federal grant rather than an entitlement. The DHSS representative went on to note that when grant monies are exhausted the State of Delaware is required to pay for the remaining coverage. The Chamber is neutral and is monitoring the legislation.

House Bill 477 would allow the issuance of minimum coverage policies by health insurers in our State. These policies, also known as “skinny policies” would be exempt from all State mandates and would allow insurers to structure and price them in a manner which would make them widely affordable. Such a product would increase the number of insured individuals in Delaware and make it possible for a greater number of employers to offer health insurance coverage. The Chamber supports this legislation.

House Bill 478 would establish a high-risk health insurance pool funded by the growth in revenue from the tax collected on gross premiums. The legislation sets out a very complex structure of the establishment and operation of the pool. The idea is to provide coverage to high risk individuals. The bill in under review by the Chamber.

House Bill 479 implements recommendations of the Delaware Health Care Commission and its Small Business Health Insurance Committee to reform rating rules for small employer group health insurance. A comprehensive review of the current law revealed that it is complicated, difficult to understand, and does not achieve the goal of making premiums more predictable from year to year. The bill compresses rate variations between high risk and low risk groups, reduces rating factors from seven to three, limits annual increases and decreases due to changes in health status to 15 percent, and prohibits the sale of 'stop-loss' coverage in the small group market. The Chamber participated on the Small Business Health Insurance Committee through Brad Allen and Joe Fitzgerald and has been calling for reforms to Delaware’s small group health insurance statute for some time. The Chamber supports the legislation.

Amid Strong Opposition from the Governor, Sports Betting Likely on Hold Until 2009
Legislation which would legalize a form of sports betting in Delaware passed the House on May 15 by a vote of 28 – 10. It remains in the Senate Finance Committee amid strong opposition from Governor Minner, the NCAA and the professional sports leagues. Proponents of the legislation argue that it would provide an additional $22-to-70 million a year in additional revenue to the State. The governor has indicated that she would veto the legislation if it reaches her desk. Delaware is one of only four states grandfathered by Congress after sports betting was banned by federal government in the 1970s. Supporters expect the legislation to be enacted under the next governor. The Chamber is monitoring the legislation.

Complex Consumer Protection Legislation Introduced With a Handful of Days Remaining in Session
Representative Bob Valihura (R-Talleyville) has introduced House Bill 489, a complex piece of legislation designed to expand the powers of the Delaware attorney general in the area of consumer protection. Business organizations and industry representatives have already identified a number of concerns with the bill and are asking that it be tabled to allow for discussion in advance of the next legislative session.

Stay Tuned…

Minimum Wage Increase Legislation Released from Committee

2008-06-11T12:04:00.000-07:00

In spite of the opposition of every major business group in the State of Delaware, the House Labor Committee released Senate Bill 204, legislation which would increase the minimum wage from $7.15 per hour to $7.75 per hour effective March 1, 2009 and from $7.75 per hour to $8.25 per hour effective March 1, 2010.

Joe Fitzgerald, lobbyist for the New Castle County Chamber of Commerce, testified against the bill and entered the following into the record:

June 11, 2008

The Honorable Terry R. Spence
Speaker, House of Representatives
Chairman, House Labor Committee
Legislative Hall
Dover, DE 19901

RE: Senate Bill 204

Dear Mr. Speaker:

I am writing on behalf of the 1700 members and board of directors of the New Castle County Chamber of Commerce in order to express our concerns regarding Senate Bill 204, legislation which would increase the minimum wage from $7.15 per hour to $7.75 per hour effective March 1, 2009 and from $7.75 per hour to $8.25 per hour effective March 1, 2010.

Our opposition to the adoption of this legislation stems from two sources. The first is our belief, grounded in empirical evidence, that wages are best determined by market forces rather than government. The second is that Delaware businesses, like those in our sister states, are facing the most challenging economic environment since the 1970s. Increased operating costs due to increased payroll costs will hurt the small business owner. This comes at a time of increased costs for electric, gas and other business supplies.

Due to the current budget situation, there is a lot of speculation that taxes and fees on Delaware businesses will be increased to close part of the $217 million structural shortfall in the FY 2009 budget. At a time when there is serious discussion of increasing the already substantial financial burden on those meeting payrolls in our State, a minimum wage increase should be out of the question.

In closing, we ask that this legislation be tabled. Thank you for your consideration.

Sincerely,

Mark A. Kleinschmidt
President

This is the absolute worst possible time to increase labor costs for Delaware businesses.

Eminent Domain Passes the Senate, House Labor Committee Takes Up Minimum Wage and Employment at Will Legislation

2008-06-11T05:28:00.001-07:00

Eminent Domain:

The eminent domain bill, Senate Bill 245, passed the Senate 19-1-1 absent yesterday. The bill is scheduled for a committee hearing in the House Transportation Land Use and Infrastructure Committee today at 3:45 p.m. Whether the governor will veto the bill if it passes the House is unknown. Mayor Baker has stated that the legislation would bring development in the City of Wilmington to a halt. A group of potentially displaced small business owners in the city favor the legislation.

House Labor Committee:

Speaker Spence has lined up quite an agenda for today’s House Labor Committee hearing:

HB 265 AN ACT TO AMEND TITLES 14 AND 19 OF THE DELAWARE CODE RELATING TO THE RIGHT TO WORK.Sponsor : Hocker
HB 282 AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE STATE EMPLOYEES' PENSION PLAN.Sponsor : Lavelle
HB 313 AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO WORKERS' COMPENSATION.Sponsor : WagnerHB 327 AN ACT TO AMEND CHAPTER 7, TITLE 19 OF THE DELAWARE CODE RELATING TO THE DOCTRINE OF EMPLOYMENT AT WILL AND PROTECTION FROM WRONGFUL TERMINATION.Sponsor : Plant
HB 394 AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO PREVAILING WAGE REQUIREMENTS.Sponsor : D. Short
HB 414 AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO COLLECTIVE BARGAINING.Sponsor : OberleSponsor : Spence
SB 204 w/SA 1 AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO THE MINIMUM WAGESponsor : Marshall

HB 313 would include post traumatic stress disorder in the list of personal injuries covered under worker’s compensation. HB 327 is Representative Plant’s legislation seeking to eliminate the employ at will doctrine in the State of Delaware. SB 204 is the Marshall minimum wage bill which passed the Senate last month.

Replacing the current Employ at Will doctrine with a requirement that employers show good cause would create labor market rigidity, fewer jobs and higher structural unemployment in our state. Such legislation sends the wrong message to Delaware businesses in any economy. In these difficult economic times, such legislation is particularly objectionable.

Where the minimum wage bill is concerned, now is NOT the time to increase labor costs for those making payrolls in our state. Our opposition to the adoption of this legislation stems from two sources. The first is our belief, grounded in empirical evidence, that wages are best determined by market forces rather than government. The second is that Delaware businesses, like those in our sister states, are facing the most challenging economic environment since the 1970s. Increased operating costs due to increased payroll costs will hurt the small business owner. This comes at a time of increased costs for electric, gas and other business supplies.

Also, due to the current budget situation, there is a lot of speculation that taxes and fees on Delaware businesses will be increased to close part of the $217 million structural shortfall in the FY 2009 budget. At a time when there is serious discussion of increasing the already substantial financial burden on those meeting payrolls in our State, a minimum wage increase should be out of the question.

Budget Cutting Continues - Tax and Fee Increases on the Horizon

2008-06-09T20:56:00.001-07:00

As part of the ongoing effort to close the $217 million budget gap for FY 2009, the Joint Finance Committee trimmed another $12.2 million from the budget. Plans to close the gap call for an additional $35.8 million in cuts and $109 million in tax and fee increases. The committee has been hard at work trimming the FY 2009 budget since the May budget mark-up break.

Increased taxes on alcohol, a partial rollback of the 2006 gross receipts tax cut and the taking of the additional .5% of the real estate transfer tax that the counties get back are some of the suggestion being discussed.

The FY 2009 budget consists of $3.4 billion in spending. It is instructive to note that at the end of the Castle Administration/beginning of the Carper Administration the state budget had not quite reached $1 billion. Even after adjusting for growth in nondiscretionary spending and inflation, this growth is astounding. Government is currently our state's largest single employer. How much longer can this growth continue without profoundly negative consequences for our state's economy?

Chamber Opposes Minimum Wage Increase: Bill Remains in the House Labor Committee

2008-05-09T16:51:00.000-07:00

The New Castle County Chamber of Commerce opposes Senate Bill 204, legislation which would increase the minimum wage from $7.15 per hour to $7.75 per hour effective March 1, 2009 and from $7.75 per hour to $8.25 per hour effective March 1, 2010.

Our opposition to the adoption of this legislation stems from two sources. The first is our belief, grounded in empirical evidence, that wages are best determined by market forces rather than government. The second is that Delaware businesses, like those in our sister states, are facing the most challenging economic environment since the 1970s. Increased operating costs due to increased payroll costs will hurt the small business owner. This comes at a time of increased costs for electric, gas and other business supplies.

This legislation passed the Senate on March 2o and was subsequently assigned to the House Labor Committee, chaired by House Speaker Terry Spence. We strongly encourage Chamber members to contact members of this committee to express their opposition to this bill. The members are as follows (for their contact information click on their name):

Chairman:
Terry R. Spence
Vice-Chairman:
Vincent A. Lofink
Members:
William J. Carson
James Johnson
Pamela S. Maier
Nick T. Manolakos
Michael P. Mulrooney
William A. Oberle
Hazel D. Plant

Budget Cuts are the Order of the Day

2008-05-08T12:51:00.000-07:00

The current budget shortfall across fiscal years 2008 and 2009 is $373.7 million. In April, the General Assembly cut close to $75 million from this year's budget in April, including $41 million in reversions to the General Fund from the capital budget brought about by House Bill 357. On May 7, the House passed another round of cuts in the FY 2008 budget with House Bill 412, which cut an additional $8.26 million in cuts and reversions in the current capital budget.

The state remains more than $60 million behind for FY 2008, which ends on June 30. At the May 19 meeting of the Delaware Economic and Financial Advisory Council, an additional $25.46 million in cuts and reversions will be announced by the OMB Director J.J. Davis.

At the Chamber, we are closely monitoring the budget situation with an eye toward discouraging any increases in the gross receipts tax. During these challenging economic times, we can ill afford to have the gross receipts tax relief we secured in 2006 pulled back.

May 21 - A Day on Capitol Hill

2008-05-07T12:10:00.000-07:00

Join us on Wednesday, May 21 for A Day on Capitol Hill!

You are invited to join us for one of the premier public policy events on the New Castle County Chamber of Commerce calendar this year – A Day on Capitol Hill . On the morning of May 21, a contingent of businesspeople and elected officials will depart via reserved rail car to Washington , D.C. for a day of special briefings, meetings with our Congressional delegation and a reception at Union Station.

This promises to be an exciting, interesting and informative day for all involved. The trip will provide an opportunity to spend time with your government officials and members of the business community and to discuss key federal issues affecting our state and our nation.
Price is $175/member, $200/non-member and includes the round trip on a private AMTRAK rail car, lunch and a special reception at the end of the day.

A tentative schedule follows:

• 8:30 a.m. Assemble at the Wilmington Train Station
• 9:05 a.m. Train Departs for Washington , D.C.
• 10:11 a.m. Arrival in Washington , D.C.
• 11:00 a.m. Luncheon Issues Briefing at the Liaison Capitol Hill Hotel
• 1:30 p.m. Briefings/Meetings with Congressional Delegation
• 4:45 p.m. Reception at B. Smiths in Union Station
• 7:10 p.m. Train Departs for Wilmington , DE

To register, please contact Myrle Bowman at (302) 294-2055, E-mail bowmanm@ncccc.com

Join us on May 6 for Barbecue and Ballots!

2008-05-05T13:07:00.000-07:00

Join us on Tuesday, May 6, 5:30 - 7:30 p.m. for a traditional beef and beer. There will be downhome cooking courtesy of Virginia Barbecue, beer, wine and soda. Don't miss the fun, food and political humor. There will be a nice mix of businesspeople and legislators.

When: Tuesday, May 6, 5:30 p.m. - 7:30 p.m.

Where: New Castle County Chamber of Commerce
12 Penns Way, Corporate Commons

Cost to Attend: $25

To Register: Please contact Myrle Bowman @ bowmanm@ncccc.com or (302) 294-2055.

Proceeds benefit the New Castle County Chamber of Commerce PAC.