by James DeChene

This week’s legislative work was cut short a day to due weather. Bills that were to be heard in committee will be heard in the coming weeks. Of note, on Tuesday the Senate defeated SB10, which, as amended, would have raised the minimum wage by $1.00 over two years. It is expected that after work is completed providing casinos tax relief, the minimum wage bill will be reintroduced and voted on. Stay tuned.
 
In other news, DEFAC met earlier in the week and added $101 million in additional revenues for FY2018 and projected 2019. It is rumored that in the next meetings that number could grow even larger. This means a new round of budget fights this year—only this time on how to spend this windfall.

It is worth noting, however, that the two primary increases came from personal income tax (PIT), and fewer claims on abandoned property. The abandoned property money is already earmarked for returns, no matter the pace, and is not what you base a budget around. As PIT has increased from the federal GOP tax plan, corporate taxes (CIT) have declined.  One bright side is that Delaware may be due a onetime windfall as companies bring back money parked overseas to take advantage of the lowered US corporate tax rate. The IRS is still working to publish guidelines on how this tax money will reach the states.  More to come.

by James DeChene

This week in Dover the focus was on legislation related to firearms. There was little of note for the business community this week, except the final meeting of the taskforce charged with researching the impact of legalizing recreational marijuana. The taskforce narrowly voted to release their report to the members of the General Assembly, and the co-chairs, Rep. Keeley and Sen. Henry, have pledged to modify their legalization bill, HB110, and continue down the path towards legalization.

Also of note are a few bills beginning to circulate, including HB321 related to “evergreen” contract clauses.  Companies that provide merchandise (in this case the definition is very broad), and have contracts that auto renew, would have to proactively notify their customers of a pending contract ending, and then the customer would have to respond back affirmatively in writing they wish to renew the contract. This would apply for services like Netflix, Amazon Prime, cable, and perhaps even other services like EZ-Pass and legal representation on retainer.

There is also a bill to be submitted on predictive scheduling, that focuses on food service industry and retail workers employed by a chain. The bill would mandate employers post employee schedules 14 days in advance, and puts in punitive measures for noncompliance, limits how and when employees can be called in, or sent home, and would drastically change how these companies operate.

The minimum wage bill was once again removed from the Senate agenda as work remains to be completed related to casino relief, which isn’t expected to happen until later in the spring.

The State Chamber was excited to be present for the expansion ceremony of member, Adesis, on March 2, at their New Castle facility. The company, along with its Universal Display associates, hosted state and local officials, including Governor John Carney, Senator Tom Carper, the Delaware Prosperity Partnership, and other members of the community to celebrate the groundbreaking of its new state-of-the-art laboratories. 

Adesis, Inc., is a contract research organization (CRO) supporting the pharmaceutical and biopharmaceutical industry, biomaterials, and catalysts industry. Adesis began operations in Delaware in 1991 and has grown in size, operations and employees, ever since. It was acquired in 2016 by Universal Display Corp., of Ewing, New Jersey. 

Adesis is housed on McCoullough Drive, and had been renting the space for about twenty years. Citing their investment in the building, Delaware's central location to its customers, and the number of employees who live near the facility, the decision to purchase the facility and stay in Delaware, was relatively easy to make.

The company also announced this past December that it would join the entrepreneurial innovation community of the Delaware Innovation Space (DISI). Adesis signed an agreement with DISI for approximately 7,000 square feet of laboratory space at the Experimental Station in Wilmington, Delaware.

The new suite of laboratories, which includes additional ancillary work and meeting space, will augment Adesis’ on-going operations at McCullough Drive. 

You can read the company press release about the expansion ceremony here. 

by Mark DiMaio

Last year we asked Chamber members to participate in a survey for input about obstacles to their business growth. We received nearly 100 individual responses to our question about specific suggestions on what Delaware should do to improve its economy.  Listed below are four areas that respondents mentioned most often, along with ways the Chamber is working to advance Delaware’s economic health.  

Improve schools and infrastructure

• The Chamber is a member of the Education Equity Delaware Coalition whose goal is to increase public awareness of education funding equity issues and solutions, and to focus on long-term systemic change on behalf of Delaware’s students, particularly those with the greatest needs. Rod Ward, president and chief executive officer of Corporation Service Company (CSC), is the Chamber’s coalition representative. 
• The Chamber supports the efforts of the task force created by HCR 39. This task force will make recommendations regarding the impact of consolidating school districts in the state. Visit www.dscc.com/takeaction and search HCR 39 in the Find Legislation field to learn more. Jordon Rosen of Belfint, Lyons and Shuman serves as the Chamber representative on a subcommittee looking at the financial impact of school district consolidation. 
• We are actively engaged, along with many of our members, with the Pathways to Prosperity program. Delaware Pathways programs are a set of curriculum focused on a specific industry-based “pathway,” paired with opportunities to gain workplace experience while still in high school, graduate with a head start on a college degree, or gain qualifications needed to go to work immediately. Consider attending the 2018 Delaware Pathways Conference on March 21.

Balance the state budget with new revenue sources and cut government spending

• We will continue to advocate for structural changes to Delaware’s budget. Delaware needs fiscal policies that foster business growth and advance the state’s long-term economic future.
• We support HB 160 that aims to establish metrics for grant-in-aid funding to nonprofits. Visit www.dscc.com/takeaction and search HB 160 in the Find Legislation field to learn more.

            
Encourage entrepreneurship and a diverse economy - strong business climate to attract new business

• The Chamber supported passage of HB 226 to create the new Delaware Prosperity Partnership, a public-private partnership to aid in the stimulation of Delaware's economic growth.
• We support HB 170: Angel Investor Job Creation and Innovation Act for Small Technology Companies. This legislation creates an incentive for qualified angel investors to invest capital in qualified Delaware small technology companies. Visit www.dscc.com/takeaction and search HB 170 in the Find Legislation field to learn more.
• Please join us on Thursday, March 22, for an important panel conversation about economic development in Delaware: “Building Delaware’s New Frontier."  

Streamline land use and permitting process – less regulation overall

• The Chamber is providing feedback to the GEAR taskforce, established by Governor Carney to review Delaware regulations and areas that could and should see reductions and streamlining.
• The Chamber will also continue to contribute, where appropriate, ideas of areas where permitting could be lessened or streamlined in agencies such as DELDOT and DNREC.
• The State Chamber is working with DNREC to update Delaware’s Coastal Zone regulations, following the passage of HB 190 (Coastal Zone Modernization Act). We believe this will make Delaware more competitive and attractive for redevelopment, bringing with it more jobs and a boost to the local economy.

by James DeChene

This week, the last before the General Assembly returns post-Joint Finance Committee break, saw two meetings of interest to the Chamber. The first, was the Joint Sunset Committee hearing on Hazardous Substance Cleanup Act (HSCA) funding, which is used, in part, to incentivize the clean-up of brownfield sites. The Chamber has been supportive of this program due to its usefulness in helping to remediate and bring back into use dirty sites across Delaware, as well as the proven return on investment the program provides. According the University of Delaware, for every dollar spent in HSCA, there are over $17 dollars brought back in economic development. Funded by a tax on gasoline wholesalers, the program funding is generally spent as soon as appropriated in July. As gas prices remain down, there is a direct negative impact on the amount of funding the program receives. There is talk of working to create a mechanism that would include a floor and a ceiling for the tax rate, depending on the price of gas, in order to provide sustainable funding for HSCA. More to come on that.
 
Also this week, the taskforce created to explore the legalization of marijuana in Delaware met, and there was some confusion during the meeting on how a vote for the release of the taskforce report would take place, and what, in fact, the vote would mean. Due to that confusion, the vote to release failed. There is another meeting next week, March 7, where there may be another vote held, but that remains to be seen.
 
Next week, the General Assembly returns. There may be a Senate vote on SB10, the minimum wage bill. As of now, the latest amended version calls for a $.50 raise in October 2018, with another $.50 raise to take place in October 2019. Right now, the minimum wage stands at $8.25. The bill is expected to pass the Senate, and there will be the opportunity for businesses to be heard when it reaches committee in the House. More to  come on that, too.

By Mark DiMaio

In 2017, we invited Chamber members to participate in a survey in part to gauge their view of obstacles to their business growth. Listed below are the top five, along with ways the Chamber is addressing them.

1. Cost of Employee Health Care
The Chamber recognizes the growing problem surrounding health care costs. 

• We will continue to follow plans to create a health care benchmark, and what that means for providers, insurance companies and patients.
• Next month, Dr. Janice Nevin, MD., MPH, President and CEO of Christiana Care Health System, will provide an important update the DSCC Board of Governors on the future of health care.
• Join us and the Greater Philadelphia Business Coalition on Health on May 21, for the Delaware Employer Summit - details to follow.

 
2. Lack of Qualified Applicants
We are actively engaged, along with many of our members, with the Pathways to Prosperity program. Delaware Pathways programs are a set of curriculum focused on a specific industry-based “pathway,” paired with opportunities to gain workplace experience while still in high school, graduate with a head start on a college degree, or gain qualifications needed to go to work immediately. The program is a unique collaboration of school districts, businesses, higher education, and national advisory partners that represent a new way to do school. The Delaware Manufacturing Association (a Chamber affiliate) members have actively participated in the Manufacturing Engineering Technology and Manufacturing Production & Logistics pathways.  

Delaware Pathways will host its 4th Annual Conference on March 21.
 
3. Concerns with Crime & Safety 
The Chamber supports the efforts of elected officials and their staffs to reduce crime in Wilmington and across the state. 

• The Chamber strongly supports the efforts of Wilmington Mayor Michael Purzycki and Wilmington Police Chief Robert Tracy to combat crime in the city.  
• The Chamber and its Health Care committee, in partnership with the Chamber's Employer Advocacy and Education Committee will host an event focused on what employers need to know about the legal and human resource challenges of opioid abuse in the workplace. This national epidemic impacts a wide swath of the population with no bias against race or economic standing and it’s important for businesses to realize the potential impact to employees and their families. Drug addiction plays a major role in crime within our communities.    

4. Concerns About Local Schools
Improving education outcomes is a key factor in developing a skilled workforce and attracting new business to Delaware.  

• The Chamber supports the efforts of the task force created by HCR 39. This task force will make recommendations regarding the impact of consolidating school districts in the state.  The Chamber has a representative (Jordon Rosen of Belfint, Lyons and Shuman) on the subcommittee looking at the financial impact of school district consolidation
• The Chamber is a member of The Education Equity Delaware coalition whose goals are to increase public awareness of education funding equity issues and solutions, and to focus on long-term systemic change on behalf of Delaware’s students, particularly those with the greatest needs. Rod Ward, president and chief executive officer of Corporation Service Company (CSC), is the Chamber’s coalition representative.    
• The Chamber supports Governor Carney and the Delaware Department of Education efforts to develop a Memoranda of Understanding (MOUs) between the Delaware Department of Education and the Christina School District, thus creating partnerships that will advance the academic growth and success of students in Priority Schools. 
• We are actively engaged, along with many of our members, with the Pathways to Prosperity program.

 
5. Cost of Permitting and Regulation Compliance 

• The State Chamber is working with DNREC to update Delaware’s Coastal Zone regulations, following the passage of HB 190 (Coastal Zone Modernization Act). We believe this will make Delaware more competitive and attractive for redevelopment, bringing with it more jobs and a boost to the local economy.
• The Chamber is providing feedback to the GEAR taskforce, established by Governor Carney to review Delaware regulations and areas that could and should see reductions and streamlining.
• The Chamber will also continue to contribute, where appropriate, ideas of areas where permitting could be lessened or streamlined in agencies such as DELDOT and DNREC.

by Mark DiMaio

In 2017, we invited Chamber members to participate in a survey to gauge their view of Delaware's economic health, and provide input on policy priorities. Listed below are the top four, along with ways the Chamber is addressing them.
​
1. Economic Development
The Chamber is dedicated to promoting an economic climate that strengthens the competitiveness of Delaware businesses and benefits citizens of the state.

• The State Chamber is working with DNREC to update Delaware’s Coastal Zone regulations, following the passage of HB 190 (Coastal Zone Modernization Act). We believe this will make Delaware more competitive and attractive for redevelopment, bringing with it more jobs and a boost to the local economy.
• The Chamber supported passage of HB 226 to create the new Delaware Prosperity Partnership, a public-private partnership to aid in the stimulation of Delaware's economic growth.
• Please join us for an important panel conversation about economic development in Delaware: “Building Delaware’s New Frontier."
• We support HB 170 “Angel Investor Job Creation and Innovation Act for Small Technology Companies” – This legislation creates an incentive for qualified angel investors to invest capital in qualified Delaware small technology companies.

2. Cost of Health Care
The Chamber recognizes the growing problem surrounding health care costs.

• We will continue to follow plans to create a health care benchmark, and what that means for providers, insurance companies and patients.
• Next month, Dr. Janice Nevin, MD., MPH, President and CEO of Christiana Care Health System, will provide an important update the DSCC Board of Governors on the future of health care.
• Join us and the Greater Philadelphia Business Coalition on Health on May 21, for the Delaware Employer Summit - details to follow.

3. Government Spending
We will continue to advocate for structural changes to Delaware’s budget. Delaware needs fiscal policies that foster business growth and advance the state’s long-term economic future.

• We support HB 160 that aims to establish metrics for grant-in-aid funding to nonprofits. 
• The Chamber will support efforts to create and maintain sustainable revenue within the State's budget.  

4. Education Reform (K-12)
Improving education outcomes is a key factor in developing a skilled workforce and attracting new business to Delaware.  

• The Chamber supports the efforts of the task force created by HCR 39. This task force will make recommendations regarding the impact of consolidating school districts in the state.
• ​The Chamber supports Governor Carney and the Delaware Department of Education efforts to develop a Memoranda of Understanding (MOUs) between the Delaware Department of Education and the Christina School District, thus creating partnerships that will advance the academic growth and success of students in Priority Schools. 
• We are actively engaged, along with many of our members, with the Pathways to Prosperity program.

by Mark DiMaio

The future is now for expanding the state’s manufacturing sector. While manufacturing jobs in Delaware continue to increase at a modest pace, building blocks have been put into place to spring Delaware forward. Delaware manufacturing will need to combine organic growth with the long-term development of heavier industries in abandoned and underutilized locations. The modernized Coastal Zone Act should propel new investment in Delaware’s manufacturing sector. 
 
In order for Delaware manufacturing to flourish, a strong and skilled workforce in essential. Many Delaware manufacturers are working with Delaware Technical Community College’s workforce training department to develop future employees to handle the rigors of 21st century advanced manufacturing. This advanced training is needed to develop skilled employees to replace older workers who are retiring. In addition to instruction in subjects such as computer programming and robotics, training also focuses on developing better ‘soft’ skills, such as leadership, teamwork and problem-solving, in order to compete in the modern workplace.
 
The Delaware State Chamber of Commerce and the Delaware Manufacturing Association invite you to learn more the about the future of Delaware Manufacturing at the Spring Legislative Brunch & Manufacturing Conference.

Contributed by DSCC Member Adesis 

by James DeChene

The December labor report was recently released and shows that in 2016 Delaware had a net increase of 350 new jobs over the course of the year, and 2017 is looking to be the same, though there may even be a slight net loss for the year.  The January report will reflect what truly happened in 2017, but odds are it won’t be pretty.  Surrounding states have seen higher growth than Delaware:  Maryland at 2%, Pennsylvania and New Jersey at over 1% -  while we are shrinking, they are growing.

This week, members of the Joint Finance Committee started their budget process. Over the next five weeks, members will review agency budgets and various funding requests, including Grant in Aid, and will work to craft a spending plan using the Governor’s recommended budget as a starting point. While forecasted revenues show a 6% increase over last year’s, next year’s growth number is back under 2%. The challenge will be for legislators to be spendthrifts during a time of increased revenues, and planning for the out-years where spending obligations will continue to outgrow revenue. Not an easy task in an election year.  More info to come as it develops.