Good afternoon,
Delaware’s moderate streak was on display this week as the General Assembly passed a nearly $4.8 billion budget with only a couple of no votes.
The usual pressures were not in place since the state is sitting on a potential $1 billion surplus as the feds picked up coronavirus costs and cities got money from relief legislation.
Gov. John Carney has taken a moderate stance that includes single-digit budget growth and setting aside funds for periods when revenues decline.
We did see largely symbolic legislation emerge from progressive Democrats and right-leaning Republicans.
Bills included a higher income tax rate for wealthier Delawareans to business and personal tax cuts. Neither went anywhere but will reappear in the election year of 2022.
Earlier in the week, a rare (for Delaware) non-election-year poll from the moderate “No Labels” group showed a sizable majority favored a smaller $1.2 trillion federal infrastructure bill.
Spending money on a poll is based on the belief that President Joe Biden and First Lady Dr. Jill Biden are paying attention to the happenings in their home state. The Bidens spend most of their weekends at their home near Greenville.
This weekend will be an exception, with the First Couple flying to Camp David.
This week, we learned that the president offered Wilmington Mayor Mike Purzycki assistance after three police officers were shot during a 12-hour standoff.
Yesterday, President Biden and a bipartisan group of senators hammered out an infrastructure framework that deals with rail, roads, broadband but falls far short of the $4 trillion to $6 trillion measure favored by progressives.
The “skinny bill” faces a tough road ahead, with many Republicans believing that any legislation they did not author is a budget buster.
In appealing to progressive Democrats, Biden later stated he would continue to push for measures that would deal with issues like climate change, child care, and higher taxes on the wealthiest Americans.
How to pay for any type of infrastructure bill remains the trillion-dollar question.
Biden has ruled out a gas tax increase, even though the per gallon charge has not been raised since the 1990s. Long term, revenues from a fuel tax are destined to decline as more fuel-efficient vehicles, including electrics, take to the roads.
The old expression – Don’t tax you, Don’t tax me, Tax that fellow behind the tree, applies.
Let’s hope that the spirit of bipartisanship continues. It is hard to find anyone who does not believe our roads, bridges, ports, and rails need an upgrade if we hope to compete in a global economy.
Here’s hoping you had a chance to enjoy this short run of beautiful weather. Unfortunately, a brutal blend of heat and humidity will return, but there is no reason not to enjoy a day at the beach or on the deck. – Doug Rainey, chief content officer.
