Monday was the first time I had attended the meeting of the Delaware Economic & Financial Advisory Council (DEFAC) in the more than 25 years I have resided in the state.
The visit was long overdue. Nowhere else can you get a better overview of the state’s financial situation and an overview of the economy.
The news coming out of the meeting was not good as the General Assembly hammers out a budget.
Despite an unemployment rate that is close to 4 percent, Delaware’s personal income tax collections remain on the weak side.
That seems to provide ample evidence that the current recovery is not producing enough jobs that push people into higher tax brackets. Delaware relies heavily on the individual income tax and that’s not a good place to be in the current economy.
Worse yet, more volatile corporate income tax revenues have fallen sharply.
With that said, this column is not intended to encourage anyone to attend the meeting.
DEFAC has a good reputation in the state for keeping revenue numbers honest, but a little fresh air is needed.
You end up in the book-filled meeting room at the Buena Vista Conference Center and unless you get a prime seat, it may be hard to see the slide presentation. Granted, it was the key meeting of the year.
One of the presenters was kind enough to offer his seat after I showed up only a few minutes early.
A handout to the press tells the story and the numbers dump is not for the novice. Click here to view the latest report.
The media, which was chastised by one of those in attendance, faces a tough job in telling the story. It doesn’t help that our ranks have been diminished by the loss of experienced staffers.
DEFAC is in need of an overhaul in the way it presents forecasts and moves that data into the public arena.
Legislators and the public would benefit greatly in updating a 1960s-style process.
