Good afternoon,
Delaware State Sen. Colin Bonini is not happy with plans by Delaware Technical Community College to seek a source of funding for construction and maintenance of its four campuses.
Del Tech is seeking a statewide property tax levy since it is currently dependent on the General Assembly for construction funds.
That money is especially scarce during economic downturns, a time when Del Tech’s services are the most needed. The delayed effect keeps Del Tech in a constant catch-up mode.
The former Republican gubernatorial candidate from Dover wrote an op-ed piece. attacking the proposal and arguing that granting the break to Del Tech would lead to a flood of other requests and an end to the state’s low property tax rates.
Bonini knows low property taxes are popular in Delaware. If any polling was done in Delaware, it is likely the idea would have little support.
Delaware Tech President Mark Brainard responded with his own op-ed that made a case for the proposal.
It isn’t the first time the property tax has been suggested as a way to address a funding challenge. A proposal by the Markell Administration to clean up the state’s polluted waterways with a charge went nowhere.
The larger issue is the fragility and volatility of the state’s current tax system that relies heavily on corporate fees and income tax revenues.
Both revenue sources are subject to ups and downs. Worse yet, the natural tendency of government is to grab for the gusto when times are good and use a combination of spending cuts and tax increases to plug the gap when the economy deteriorates.
Bonini is right about the property tax being eyed as a piggy bank. Brainard makes a strong case for a reliable source of funding for an educational institute that deserves a stable source of revenues.
Neither has an answer for a far bigger issue that will come back to haunt the state during the next economic downturn.
Enjoy your Tuesday and keep an eye on the weather. – Doug Rainey, publisher.
