Legislation adds paid family leave for state workers, boosts SEED scholarships and refunds tax credit

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House Democrats announced a package of bills Wednesday under title  Fair Shot Agenda.

The agenda consists of four bills that according to sponsors will help level the playing field for working families.

“Working families deserve every chance to have a job and work with dignity without having to choose between their career and their family. They should be able to complete their education so they can have better-paying jobs,” said. Rep. Debra Heffernan, D-north Wilmington. “It’s clear that many working-class residents are still trying to fully recover from the economic downturn. We owe it to our neighbors to look out for them and take positive steps to help them on the path to success.”

House Bill 3, sponsored by  Heffernan, would make Delaware the sixth state to offer some form of paid family leave to new parents. Under the bill, full-time state employees including teachers would be eligible for 12 weeks of paid maternity or paternity leave after one year of employment.

New parents would be eligible for leave for up to one year after the birth of the child or adoption of a child under the age of six.

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Sponsors noted that  Delaware employers such as Bank of America, JPMorgan Chase, DuPont, AstraZeneca, Barclays and Merck already offer paid family leave to their workers.

At the same time, the state is facing a nearly $400 million budget gap and the question of whether the state can afford the added cost is likely to be debated.

Low- and middle-income Delawareans would see financial relief under a bipartisan bill that would make the state’s Earned Income Tax Credit refundable.

 EITC is the nation’s most effective anti-poverty program for working families, according to legislators.  About 25 states, Delaware included, have state EITCs. In Delaware, the state EITC is non-refundable, reducing the tax liability but not providing a refund to residents. Non-refundable EITC does not offer any benefit to working families that have income too low to owe income taxes.

Sponsored by Rep. Paul Baumbach,  D-Newark, House Bill 113 would reform the EITC from nonrefundable to refundable and capable of exceeding the tax amount otherwise due. The credit would be phased in, increasing 1 percent per year from 6 percent of the corresponding federal earned income credit in 2018 until it reaches 15 percent of the federal EITC in 2027.

HB 126, sponsored by Rep. Sean Lynn, D-Dover,  would expand the eligibility criteria for childcare assistance in Delaware. The bill would allow unemployed parents and guardians to begin receiving child care assistance as they seek new employment opportunities for up to 90 non-consecutive days each year.

“Anyone who has had a child in recent years knows that one of the biggest costs of starting a family is childcare,” said Rep. Lynn, D-Dover. “It’s tremendously important for parents to be able to go back to work in order to provide for their children, but the cost of childcare can be prohibitive. By extending these benefits to include those Delawareans currently unemployed, we will help parents during this critical time to get back to work while ensuring that their children are cared for in a safe environment.

A draft proposal, sponsored by Rep. David Bentz, would establish the Complete Your Degree Grant Program, which would provide resources to students who are reenrolling in a publicly funded associate degree program in Delaware.

Under the bill, a student must meet the general eligibility requirements for a SEED scholarship; have not been enrolled in a college program for at least two years; have earned a minimum of 30-semester hour credits toward an associate degree; and have an adjusted gross income that does not exceed $36,000.

“We repeatedly tell people that getting an education will help open doors, that it will increase their earning potential,” said Rep. Bentz, D-Christiana. “But for those who for whatever reason are unable to complete their degree, there’s no mechanism to help them go back and finish what they started.

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