Governor signs budget with 2.4% spending increase

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Photo from the governor's office on the budget signing.
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Photo from the governor's office on the budget signing.
Photo from the governor’s office on the budget signing.

Gov. Jack Markell signed a budget bill Tuesday morning that reflected a tight revenue forecast and unhappiness with bold plans to deal with a transportation funding gap and stream pollution.

Markell  saw  members of  his party turn away from plans for 10-cent gas tax increase and a fee tacked on to property taxes for clean-up of the state’s polluted streams. Democrats are facing election year challenges and voter unhappiness over taxes in a state where residents mainly pay for government via the income tax.

Transportation funding does include a $1 weekend toll increase on Del. Route 1 and $40 million was taken from  transport funding to deal with a revenue gap that came in amid disappointing estimates of tax and fee revenues.

The bill was signed in the early morning hours on Tuesday. The long hours came despite the budget being passed days earlier. The General Assembly was considering a number of bills in the waning hours of the session.  The House passed a $10 million measure that provides a bit of relief for the state’s troubled casino industry, which has fallen victim to competition from neighboring states.

 The budget contains 2.46% growth over fiscal  2014 despite unexpected increases in Medicaid expenses and the number of children attending Delaware schools. Average annual budget growth during the Markell administration (2009-2015) is 2.2%. Republicans called for a 2 percent reduction in spending, but saw their plan go nowhere in a General Assembly dominated by Democrats.

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Delaware’s economy continues to outperform the country where it matters most, with job growth outpacing the national average every month since the start of 2013, and during the past six months we have kept moving forward. The achievements of this session will help more people realize their potential and make the most of their abilities in our great state,” Markell said the budget signing.

Highlights of the session   listed by the administration:

·         Established Downtown Development District program (SB 191) to revitalize urban areas and spur economic activity by attracting increased private funding through development and other incentives in selected areas. It is funded at the full $7 million requested to allow for the selection of 1-3 districts in the first year.

·         Reformed workers’ compensation system (HB 373) to reduce high costs to businesses through recommendations of a task force created by the Governor and General Assembly.

·         Supported small business innovation (HB 318) and growth by doubling the R&D Tax Credit for them. HB 318 targets the credit toward startups and small companies with less than $20 million in receipts by making them eligible for a tax credit of up to 100% of the federal credit, while large companies continue to qualify for up to 50%.

·         Encouraged and supported innovationthrough the Delaware Cyber Initiative to spur innovation in a key industry that has hundreds of unfilled jobs in the state ($3M in Bond Bill) and through funding for a Federal Research and Development Matching Grant Program ($2M in Bond Bill).

·         Spurred Fort DuPont Redevelopment (HB 310), recognizing Fort DuPont’s enormous potential as a sustainable, mixed-use community that preserves the historical and environmental interests of the complex and surrounding areas. The bill authorizes the creation of the Fort DuPont Redevelopment and Preservation Corporation, an entity that will spearhead the renovation, redevelopment, and preservation of the complex.

·         Extended the Bank Franchise Tax Creditto support financial industry job creation by changing the sunset of the tax credit from January 1, 2022, to January 1, 2032, and providing for a rolling base year for measuring employment growth.

·         Helped Veterans transition to civilian workforce (HB 296) by having professional licensing boards recognize military education, training, and experience when reviewing credentials and issuing licenses.

·         Prioritized energy efficiency(SB 150), which reduces energy bills and creates local construction jobs, by driving investments in energy efficiency that displace more expensive energy supply purchases.

·         Funded Accelerated Career Path opportunity for high school students to gain professional certificates in manufacturing by the time they graduate, while receiving exposure to Delaware Tech and the workplace. To further promote and support experiential learning as a workforce development tool, the budget funds a competitive grant program for public-private partnerships between employers and schools. ($900K)

· Access to College

o   Funded college access initiatives, including dual enrollment options, and efforts that have been part of the “Getting to Zero” program. ($1.5 million) , a program that has shown results according to Markell:

§  All college-ready seniors in this year’s graduating class applied and have taken steps to enroll (in previous years about 1 in 5 did not); and

§  More students are taking AP courses and passing AP tests.

 Leaning

o   $19.0 million to maintain classroom size and fully fund unit count (220 units).

o   $10.2 million for step increases for school employees and the enhanced paraprofessional pay plan.

o   $2.9 million for pupil transportation associated with enrollment growth.

·         Initiated effort to improve the educator compensation system (SB 254) to make starting salaries competitive, reward educators who take leadership roles, and better support those who work with the most at-risk students. These are critical steps to help Delaware attract, develop, and retain high-quality educators, who are the most important school-related factor in students’ academic success.

·         Established a path forward for school district funding flexibility after more than six decades operating with the current funding system. The rigid state funding model has prevented school leaders from developing innovative ways to best serve their students. (Budget Epilogue)

·         Transitioned to assessments aligned with Common Core (HB 334). This move will align state assessments tocollege and career ready standards.

For those in need:

·         Raised minimum wage from $7.25 to $8.25 per hour. (SB 6) Upon signing the bill, Governor Markell emphasized that “raising the minimum wage represents one of the fastest ways we can act to give a boost to many struggling working families.”

·         Addressed employment discrimination against ex-offenders by banning the box for public employers (HB 167) and permitting the Department of Correction to offer employment for up to 6 months to ex-offenders who have demonstrated exceptional job skills. (HB 264)

·         Ended driver’s license revocation for drug offenders whose crimes don’t involve a motor vehicle, removing an obstacle for them to get a job and contribute to their communities. (SB 217)

·         Addressed rising prison costs and made the approach to sentencing and penalties more appropriate. Initiatives included:

o   Sentencing reform that ends Delaware’s status as the only state to not allow concurrent sentences (HB 312); and

o   A pre-trial supervision program to will keep some non-violent individuals out of prison. ($250K)

·         Funded community-based advocates for young people transitioning out of juvenile facilities to help them keep their lives on track when they return to their communities. ($250K)

·         Established a Youth Re-Entry Education Task Forceonensuring the appropriate services are available for youth leaving juvenile secure care facilities.

·         Transformed the way the state handles addiction through better treatment, community care management and other related services. The State will increase detoxification services, assertive community treatment team services and sober living occupancy rates, while also establishing a comprehensive system to meet the needs of people in correctional facilities who have substance abuse disorders. ($1 million)

·         Supported public services for people in greatest need

o   $3.8 million in the Division of Developmental Disabilities Services to support additional community placements.

o   $3.6 million for community-based services for individuals with serious and persistent mental illness.

o   $1.8 million to the Division of Developmental Disabilities Services to support an estimated 175 additional special school graduates.

o   $1.3 million to help kids get off to the right startby expanding the proven Nurse-Family Partnership program that assists first-time mothers.

 Government

·         Reformed the Office of Medical Examiner to restructure it as a free-standing division of the Department of Safety and Homeland Security. The bill addresses issues that contributed to the problems reported earlier this year by providing for oversight and accountability of the division and its new director. (SB 241)

·         Enacted further campaign finance reform legislation to build on earlier efforts during the Governor’s Administration to increase transparency and effectiveness of the campaign finance system, while also improving the overall effectiveness and efficiency of how the state administers elections.

o   HS 1 to HB 302 consolidates the three County Elections Boards, grants a new State Board of Elections authority over campaign finance-related disputes, and allows for anonymous reporting of election law violations.

o   SB 186 requires that entities disclose name and address of one “responsible party” – someone who shares or exercises direction or control over entity’s activities.

o   HB 301 provides for clearer attribution of contributions from joint accounts by requiring that contributions from joint accounts (including but not limited to bank accounts) be attributed to the person signing the check or authorizing payment.

o   HB 300 addresses whistleblower protections for employees who report and/or refuse to participate in violations of campaign finance laws, and who participate in an investigation, hearing, trial or inquiry of a campaign finance violation.

o   SB 187 provides a safe alternative for the return of prohibited campaign and suspected prohibited campaign contributions.

 

 

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