A recent article in SFGate focused on how Maine’s aging population is putting a strain on the healthcare industry—from retirement homes to home health aides, there aren’t enough people to staff these jobs forcing closures and cuts to services, even if they are state mandated.
Maine now classifies as “super aged” meaning over one-fifth of its population is over the age of 65. By 2026, 15 other states, including Delaware, are expected to follow suit.
Let that sink in.
While Delaware touts itself as a retirement destination, and it certainly is (Hello, Sussex County) the flip side is the strain placed on care workers as more and more individuals require assistance and care. The cost to provide these services isn’t expected to decline any time soon, and as last year’s minimum wage debate highlighted, the cost to the state to increase reimbursements for direct support professionals ranges into the millions per year.
Delaware should be following closely the situation in Maine and the other 13 states, as we collectively advance to “super aged” status. We need to be looking at creative ways to lower costs for businesses so they can apply those savings to the inevitable cost of labor increases. For example, Maine allows businesses to pool together to purchase insurance under associated health plans, an idea the State Chamber and others has begun to flesh out.
It will take creative and innovative thinking to help solve these and other problems facing Delaware, and it will take the cooperative efforts of the general assembly, business, health care and other communities coming together to be successful.
by James DeChene
Last week had, and in the upcoming magazine will have, a write up on the end of session that wrapped up early July 1st. Not captured, however, were some of the more esoteric moments that helped make up the last six months that I’ve found interesting now that summer has officially begun and your friendly neighborhood government affairs professional has time to think.
Headed into January with over 20% new faces was both exciting, thrilling, nerve-wracking and (at least for me) a career first to work with so many new members. It’s been interesting watching them learn the ways of the building, finding out what issues they are passionate about, and how the State Chamber and our members fit in. The answer to the last point is a positive one from my perspective. Each of the freshman legislators I had the opportunity to work with were open to hearing how legislation would impact the business community, and while we may not have agreed after each conversation, it’s important to continue to build the dialogue and relationship going forward.
I was also impressed with the “temperature” of the building. It’s no secret the last few years ended in with tempers flaring as the time grew later and later into July 1st, and even beyond. This year (with hopes that next year will be similar) each Chamber was efficient in finishing up what they needed to do, and it was one of the earliest, and least contentious, endings to a session in recent memory. Let’s keep that particular streak going.
As I think back to the work that was accomplished in the last six months, I’m grateful for the partnerships that helped make it possible. The Association of Chambers has been the most active it’s been in years with almost every chamber of commerce actively participating. The State Chamber membership stepped up to help provide background, talking points, suggestions, communications and alternatives on key pieces of legislation this year. That streak will definitely need to keep going.
You’ll hear more from us in the coming months on priorities we’re pursuing, including cheaper health care options for businesses, innovative ideas on workforce development and training opportunities, as well as asks for help to keep up the pressure on the “old standbys” in minimum wage and marijuana legalization legislation. You’ll also be asked to provide your feedback on these and other issues as we shape our 2020 agenda. Until then, I hope you enjoy this bit of summer and that your AC continues to work.
Earlier this morning the General Assembly finished their work for the first leg of this legislative session. Items of note included a budget that set aside close to $125 million in reserves for future years, the largest bond bill in Delaware history, and a grant-in-aid bill with more money allocated than in recent years.
Of specific note for the business community are the bills that did not find their way to passage, although many will return in January. They include a minimum wage increase, a tipped worker minimum wage increase, and the legalization of recreational marijuana.
The Chamber continues work on a number of items into next year, including finding creative ways to lower health care premiums for small and medium sized businesses, investments in workforce development and training opportunities for unemployed and underemployed workers, and finding innovative ways to attract and retain high level talent for employers looking to expand and relocate here in Delaware.
The State Chamber thanks you for your engagement this legislative session and we look forward to working with you next year in making sure Delaware is the best place to live, work and do business.
by James DeChene
This week, the last of this session saw a few bills of importance to the business community being either introduced or worked. One is SB 71, a bill that would mandate that all future pharmacies run in Delaware be owned and operated by a pharmacist or an entity comprised of a majority of pharmacists. This would have serious impacts on the pharmacy, developer and construction industries in Delaware, as chain pharmacies, grocery stores and stores like Walmart and Target would no longer be able to run their pharmacies themselves, and would instead have to lease out space to pharmacists/pharmacist groups if they wanted one in their store. This would have a chilling effect on future development and expansion of these entities in Delaware, including potentially putting the kibosh on the proposed Wegmans in Barley Mill. The State Chamber and others have asked for the bill to be delayed until next year so that we can work toward a compromise. More to come.
Two bills involving tipped workers and minimum wage were introduced this week. One would raise the tipped worker minimum wage to 65% of the current minimum wage, and the other would govern how tips are reported and paid out by an employer. The State Chamber is currently reviewing these bills with industry organizations and representatives to judge their impact.
The Senate passed the Bond bill late Thursday night, totalling $816MM for FY19 and $862.9MM for FY20, where it now faces a vote in the House.
The General Assembly will meet on Sunday and into Monday as they finalize the last minute spending bills (bond and grant in aid) and work to get their last minute must-haves passed. Look for an update Monday on the big ticket items accomplished.
by James DeChene
This week in Dover saw the General Assembly continuing their work prior to the June 30th recess. Items of note included confirmation that the minimum wage bill will not be worked on again until January, and the same for the legalization of marijuana. The State Chamber will continue to advocate on behalf of the business community educating members of the General Assembly of the pitfalls of these bills, and will be looking to our members to help share their stories.
The House passed the budget bill this week, along with an approximate $61 million one-time spending bill to be administered by the Office of Management and Budget. Once bond and grants in aid bills are finalized, that will dictate how much will be used in the set aside for reserves (a reminder that the State Chamber has called for $125 million to be set aside). A bill that would allow school districts to provide students with bus passes, allowing them to get to school and potentially to after school jobs, passed the Senate where it now heads to the House. A bill that would increase the penalties for failure to file their proof of unemployment insurance each quarter from $17.25 to a minimum of $100 with a cap of $450.
Next week is the final week of session, ending June 30/July 1. Items to be considered, along with finalizing the budget, will be bond bill, grants in aid, and perhaps the workplace fraud act legislation that the Chamber and others have been working on for about a year now. More to come.
by James DeChene
This week in Dover the major bill impacting the business community was SB105, which will raise Delaware’s minimum wage to $15. We started off the week hosting a teletown hall with over 50 members joining to hear the latest on timing and strategies, and a number of businesses joined us in Dover to make comment on the bill at the Senate Labor Committee. The stories business leaders shared during the committee meeting were compelling and varied, and included entities ranging from nonprofits to small and medium sized businesses from bakeries to a small business sign maker. Ultimately the bill was released from committee and has now been assigned to Senate Finance Committee due the bill’s significant fiscal note. If you have not taken the opportunity to contact your senator on this bill, I urge you to do so by visiting our Action Network page.
Other bills of note: The passage of a Chamber-backed bill in SB61, which would create a Transportation Infrastructure Investment Fund (TIFF) to help expedite commercial and industrial development projects. Released out of committee was SB74. This bill would make a technical change to the New Economy Jobs credit making it easier and more likely businesses will be able to take advantage of the credit.
Moving forward, there are 7(!) legislative days left this session. DEFAC will meet next Wednesday to announce the final forecast numbers that will dictate how much money will be allocated to the bond and grant-in-aid bills.
members testifying against sb105 on june 12:
by James DeChene
This week was the first in the four-week sprint to June 30. Highlights this week included: HB110, the legalization of marijuana bill was released out of House Revenue and Finance committee. DSCC remains opposed to the bill for reasons such as restrictions in how employers can create employment policies surrounding marijuana use, the current difficulty for employers finding qualified applicants that can pass a drug screen (which we think will be exacerbated by legalization) and the lack of a spot test for impairment.
SB105, the bill that would raise Delaware’s minimum wage to $11 in January 2020 and then by a dollar each year until it hits $15 in 2024 (with an imbedded escalator to raise with cost of living), was tabled in committee this week, HOWEVER, it will be heard in Senate Labor Committee next Wednesday, June 12. This will be one of the Key Votes (along with HB110) that DSCC will be using when making the decision on whether to support candidates.
Also this week was the State Chamber’s End-of-Session Brunch. Attendees heard from Tim Holly, chair of the DSCC Employer Advocacy Committee, on HB110, from Gary Stockbridge, DSCC Chairman, Chair of the Delaware Workforce Development Board (DWDB) and President of Delmarva Power, on what the DWDB is up to and how members can help in workforce training. We then heard from Solomon Adote from the Delaware Department on Technology & Information on the Cyber Security Council and the work they are doing to develop best practices on how to combat cybersecurity threats.
Rounding out the morning were remarks from House Speaker Pete Schwartzkopf on what to expect in June, including legislation on clean water, medical and recreational marijuana, education investments and how the state budget is shaping up. Senate President David McBride offered his perspective including acknowledging efforts by the General Assembly and the State Chamber to help provide economic development opportunities in Delaware. He also discussed what the Senate will be working on, including minimum wage in committee, education and transportation infrastructure investment
by James DeChene
HB110, the bill that would legalize recreational marijuana, will be heard in the House Revenue and Finance Committee on Wednesday, June 5, at 2:30 p.m. Those members who have concerns over what legalized marijuana will mean to their business and their employees should come to Dover and tell committee members about the impact this legislation will have if passed.
To recap, the bill:
Each speaker can expect to have two minutes to speak—including introducing themselves and their organization, the number of employees you have, and the impacts the bill will have. I am happy to help guide you through this process. Please let me know as soon as possible if you plan to attend.
In other news this week, DTI and Bloosurf announced a partnership to bring broadband to areas in Sussex, Kent and southern New Castle counties over the next 18-24 months. This is an initiative the Chamber has been very supportive of, and we are looking forward to the economic development opportunities that will come as a result of this investment.
The General Assembly is back in session next week, and 13 legislative days remain. Expect a flurry of bills to be introduced, including a clean water infrastructure bill and more to come on a potential minimum wage increase bill.
by James DeChene
Next Tuesday, the day after the State Chamber’s Annual Dinner (see you there), the 150th General Assembly will gavel into session, with roughly 20% new members between the House and Senate. Other changes include a new Senate Secretary (best of luck, Joy), some new staff faces, new seating charts, and new committee assignments and offices for members. Some things, though, remain the same, including the “Delaware Blue” paint scheme that the lobby core will be staring at for the next six months.
For some members, Tuesday will represent the first time they will vote “Yes” or “No,” and if history holds, they will do so a few hundred times over the next two years. The variety of items facing their votes will be numerous, and based on the pre-filed legislation so far, we know of a few specifics. Two new top tax brackets for high earners, an Equal Rights Amendment that when passed will become a Delaware constitutional amendment, and changing the polling hours for school board elections. Another stack of pre-filed bills will be released today, and certainly more will come as session continues.
Items to watch include legislation to legalize recreational marijuana, more changes to Delaware’s minimum wage, proposed changes to Delaware’s LLC regulations, predictive scheduling, and a host of unknown, but important, issues that will face the business community.
As legislation is introduced that impacts your business we and your elected officials need to hear from you. Share with us how new proposed legislation will impact your employees or force other changes to your business; or how it could change your plans for investment, expansion, or your ability to stay in business. These stories are critical to be heard, and we will have measures in place to make it as easy as possible for you to comment without taking time away from focusing on your operations. Your voice matters and the State Chamber works to make it heard.
by James DeChene
The Delaware Economic and Financial Advisory Council (DEFAC) issued its December forecast on Wednesday afternoon. The December forecast is what Governor Carney will use when finalizing his recommended budget, to be released on January 4th. For the first time, his budget will utilize portions of the budget smoothing process, a legislative proposal that failed last year, but was issued in part via Executive Order. The order places a limit on spending growth and sets aside a portion of the surplus into a Budget Reserve Account.
DEFAC reported spendable cash (98% of projected revenues) is up from the last forecast issued in September by $66.6 million. It also projects an increase of revenue of 1.7% for FY19 and 2.1% in FY20. It’s worth noting that the FY18 revenue growth rate was 9.5%. While there shouldn’t be a big budget showdown next year, there also won’t be a big windfall to be had under these predictions. One remaining unknown cost driver will be depend on how a court case is decided regarding how Delaware funds its schools, and how much more will need to be appropriated. More to come on that.
The Delaware Department of Labor released a statement with details about the minimum wage increase:
Minimum wage will be increasing for most individuals in Delaware twice in 2019. On January 1, it will be $8.75 and then on October 1, it will be $9.25. But, for the first time in Delaware history, we will now have a multi-tiered minimum wage. The General Assembly adopted a "Youth Rate" and a "Training Rate" that is $8.25. The youth rate applies to workers ages 14 through 17.
The training rate applies to adult workers during their first ninety days on a new job. These new categories are $.50 less than the regular minimum wage rate. Effectively, that means workers under 18 and new employees with less than 90 days on the job won't see an increase on January 1st. Their first increase ($8.75) will come when they become eligible for the regular rate or on October 1, 2019, with the next general increase, whichever comes first.
The labor law poster sets out all the rates. It is required to be displayed in all workplaces in a place accessible to employees and where they regularly pass. The poster is available on the Department of Labor’s website and can be downloaded in English here and Spanish here.
James DeChene is the Chamber's Senior Vice President of Government Affairs.