Bebe Coker, Ahead of the Curve
Member NewsNEW! TOURISM Advertising opportunity
Our weekly emailsFROM OUR PARTNER ORGANIZATIONS
0 Comments
by James DeChene
This week was the first of the Memorial Day break, and the first of the Joint Finance Committee working on marking up the FY20 budget. Good news for budget writers came in the form of DEFAC numbers on Monday, adding close to $80 million to the forecast. Split almost evenly between the current year ($40.7 million) and next year ($38 million), this meeting continued the trend of meetings since September where an average of $40 million to the current year was brought in. This month the largest increase came from personal income tax filings. The total increases for FY19 total $200 million and nets out to an additional $160 to spend, or as the Chamber advocates, to set a large portion aside for when the economy takes a downturn. That message was the focus of a letter sent to the members of Joint Finance this week from Chamber president Mike Quaranta that setting aside these dollars is good stewardship of public dollars. As a large part of Delaware’s revenue stream does not move with the economy, it’s important to save now while the money is coming in. More good news in that Delaware’s unemployment rate is the lowest since 1988, and we haven’t suffered the national numbers where the unemployment numbers are down, but so is workforce participation. A good win-win for Delaware. And lastly, the best news of all this week, is the three-day weekend. Memorial Day, BBQs and vacation aside, is the time when we should reflect on those who gave their lives for the lifestyle we currently enjoy. The freedoms we have today certainly weren’t free to achieve, and the thousands of men and women who made the ultimate sacrifice deserve recognition in how they helped shape this great country of ours. by James DeChene
This week saw action on bills important to the Chamber. First, SB74 provides employers taking advantage of the New Economy Jobs credit to prorate the credit over 12 months, rather than using the calendar year (Chamber supports). This would allow employers making hires at the end of the year a full 12 months to spread out the credit. SB21, creating the Transportation Infrastructure Investment Fund was released from House Transportation Committee (Chamber supports). A bill banning certain flame retardants in consumer products (HB117-Chamber opposes) was tabled in committee. A bill banning single use plastic bags (HB130) passed the House and now goes to the Governor for signature. The effective date for implementation is January 1, 2021. This session’s HB110, an act to legalize recreational marijuana, was introduced this week. As drafted the Chamber still opposes the language and will be working to insert language to protect employers. As previously noted, 71% of Chamber members oppose legalization. Last week the Chamber attended a working group focused on what the next round of renewable portfolio standard goals would be post-2025. The Chamber expressed concerns over how increasing renewables would impact Delaware commercial energy users, and to make sure that as technology continues to improve, Delaware doesn’t lock itself in to a certain type of renewable source. The General Assembly is off for the next two weeks before returning for all of June. by James DeChene This week the General Assembly returned from Easter break and the State Chamber, in partnership with its Small Business Committee and the Association of Chambers, hosted the 5th Annual Small Business Day in Dover. Over 70 people, including Chamber representatives, businesses leaders and elected officials, attended the event. The agenda included meetings between business owners and their legislators, and participation in the Small Business Caucus monthly meeting. Policy items of focus included HB80--Earned Income Tax Credit (Chamber supports), SB65—FAST Training (Chamber supports), HB15—New Personal Income Tax brackets (Chamber opposes), and the legalization of recreational marijuana (Chamber oppose). This week in Legislative Hall, HB130, related to single use plastic bags, was released from the House Natural Resources Committee. And SB74, with a technical correction to the New Economy Jobs tax credit (Chamber supports), left the Senate Banking and Business Committee.
Next week, SB21—Transportation Infrastructure Investment Fund (Chamber supports) is in committee. More to come as we learn more. Lastly, the Chamber is working to update its database to identify Chamber members that qualify as Diverse Suppliers. If you carry a Diverse Supplier designation please email Chuck James at cjames@dscc.com. Categories are Woman-Owned Business Enterprise, Minority-Owned Business Enterprise, Veteran-Owned Business Enterprise, Disabled-Owned Business Enterprise, Historically Black Colleges & Universities, LBGT-Owned Business Enterprise, Historically Underutilized Business (HUB), and Small Business Enterprise. by James DeChene
The General Assembly was out this week, and will be back on Tuesday. Last week I highlighted a number of bills having seen action so far this year, and below is the second half of that list. SS1 for SB37: Expungements This bill makes a number of misdemeanors eligible for mandatory expungement based on the passage of time with no subsequent offenses. The bill has also been amended to make more than two misdemeanors eligible for discretionary, rather than mandatory, expungement. The Chamber was involved in the process insofar as to make the case that employers have a right to know an applicant’s history balanced with the fact that an offender has paid their debt to society and should have the opportunity for gainful employment. The amendment makes the bill better, and has passed the Senate unanimously. It makes its way over to the House to be heard in committee. HB80: Earned Income Tax Credit (EITC) The Chamber supports this bill making the EITC a refundable credit in Delaware. This type of measure does more to support low income workers than minimum wage increases. A 2007 study by the University of New Hampshire found that seven out of 10 economists agree that the EITC is the best antipoverty program available to us, while only one out of 10 said the same thing about minimum wage hikes. The bill makes the EITC a refundable tax credit for Delaware state returns, an initiative the Chamber’s Tax Committee supports. HB130: Plastic Bags This bill expands upon the existing at-store recycling program regarding the use of single-use plastic bags. The existing requirements will continue, however stores subject to this program will now be limited from providing single-use plastic bags for only specific uses thereby encouraging a shift to reusable bags. The purpose of the bill, as detailed in the preamble, is to clean up Delaware’s communities and watersheds, reduce storm water and trash management costs to taxpayers, and promote the health and safety of watersheds, wildlife and humans, and the ecosystem’s food chain. On January 1, 2021 this bill enacts a ban on stores providing single-use plastic bags at check-out. Legalization of Recreational Marijuana While no bill currently has been introduced, the State Chamber of Commerce membership was polled and 71% of our members oppose the legalization of recreational marijuana. Consistent responses to the survey highlighted issues ranging from the availability of a drug free workforce, concerns about liability in the workplace (offices, manufacturing facilities, warehouses, construction sites, delivery drivers, etc.), the lack of a “spot test” to determine impairment, and on the potency of edibles and other delivery systems. All of these issues will be discussed in depth next Thursday at our Small Business Day in Dover event. Click here to register. More to come next week when the GA is back in session. Stay tuned. by James DeChene
This week marked the first of the General Assembly’s two-week Easter break. DEFAC met this week and revised its forecast by an additional $42.8 million for this year, and roughly $16 million for FY20. Each of DEFAC’s meetings this year have seen revisions upwards. A reminder that the Governor has urged the General Assembly to set aside any such increases to be used for savings for future years and on one-time expenditures, like the Bond Bill. This week and next, I’ll give updates on the status of bills so far this session that have an impact to Chamber members: SB61 is a Chamber-supported bill that would create a Transportation Infrastructure Investment Fund (TIIF). It passed the Senate and now heads to the House for committee assignment. The bill creates a fund to help offset the cost of providing transportation-related improvements for commercial and industrial development projects, which will also help speed the process to project completion. SB65, the FAST bill, heads to the Senate for a vote. The bill provides up to $9K to Delaware high school graduates to obtain a non-degree certification. The Delaware Workforce Development Board will create an approved list of certifications, and the Chamber supports the bill. SS1 to SB 48, a bill to require apprentice and craft training on prevailing wage jobs, was released from the House Labor committee, and is ready to be voted on in the House. The Chamber opposes the bill as drafted and is working to amend it prior to the vote in the House. HB15 is a bill the Chamber opposes and would create two new top tax brackets: 7.1% for earners making $125K and over, and 7.85% for earners making $250K and over. SS2 for SB50 directs money from the bond bill to be issued to DelTech, along with bonding authority, to help address the college’s deferred maintenance issues reported on before. The bill’s main difference from the original SB50 is the removal of the statewide property tax provision as a revenue source. The bill is ready to be signed by the Governor. SS1 for SB25 was passed and the age to purchase tobacco is now 21 in Delaware. by James DeChene
This week a Chamber-supported bill that would create a Transportation Infrastructure Investment Fund (TIIF) passed the Senate and now heads to the House for committee assignment. The bill creates a fund to help offset the cost of providing transportation-related improvements for commercial and industrial development projects, which will also help speed the process to project completion. In Senate Labor, SB65, the FAST bill, was released and heads to the Senate for a vote. The bill provides up to $9K to Delaware high school graduates to obtain a non-degree certification. The Delaware Workforce Development Board will create an approved list of certifications, and the Chamber supports the bill. The General Assembly will be off for the next two weeks for Easter break. When they return they will consider, among other things, a plastic bag bill, a contractor registry bill, and start the budget markup process. Onward! by James DeChene
The General Assembly came back to a busy week where a number of bills related to the business community saw action: A bill to require apprentice and craft training on prevailing wage jobs was released from the House Labor committee, and is ready to be voted on, perhaps as early as next week. The Chamber testified against the bill, mainly because of technical issues related to the legislation, and the potential for contractors to be locked out of bidding and performing state work. The Chamber spoke in favor of a bill creating a Transportation Infrastructure Investment Fund (TIFF), a measure supported by the Administration, DelDot, and other industry groups. Two bills related to raising the personal income tax were heard in committee, and one was released. HB 15 adds two new top tax brackets—7.1% at $125,000, and 7.85% at $250,000. The Chamber opposed both bills in committee. The bill raising the minimum age to purchase tobacco products to 21 passed the House and now goes to the Governor for signature, as did a bill providing bonding authority to DelTech to assist in addressing their deferred maintenance needs. The General Assembly meets next week, prior to a two week Easter Break. by James DeChene This week was the 8th Annual Taste of Delaware event, which the State Chamber held in partnership with honorary host, Senator Chris Coons. Postponed from December, the event this year coincided with spring in the nation’s capital, including cherry blossoms, sunny skies and an unfortunate last inning win by the Nationals. We saw 600 plus attendees who filtered in and out of the historic Kennedy Caucus Room, which featured scenes such as the Watergate hearings and nomination hearings of Supreme Court Justice Clarence Thomas. Over 20 vendors, including some of Delaware’s iconic establishments, the Starboard, Home Grown Café, SoDel Concepts, the DelTech and DelCastle culinary programs and more, served up tasty treats. These vendors showcased, from north to south what Delaware has to offer. Many thanks to our friends in Delaware who made the trip down, to the ex-pats who may have left the First State but are always happy to visit, and for the new friends we made across Capitol Hill. See you again this December. In other news, the General Assembly returns next week. Of note are two personal income tax bills to be heard in the House Finance Committee (DSCC opposes both), a bill mandating apprentices on certain public works projects to be heard in the House Labor Committee (DSCC opposes as written), and a bill creating an infrastructure investment fund at DelDOT supporting economic development to be heard in the Senate Transportation Committee (DSCC supports). Pictures from the Taste of Delaware:by James DeChene This week in Dover saw action in the Senate on a number of bills related to business. First, SS2 for SB50 directs money from the bond bill to be issued to DelTech, along with bonding authority, to help address the college’s deferred maintenance issues reported on before. The bill’s main difference from the original SB50 is the removal of the statewide property tax provision as a revenue source. Also in the Senate was SS1 for SB48, which mandates journeyman and apprentice craft training for those who work on publics works projects. The Chamber, ABC, Drive Delaware Forward, and others, worked unsuccessfully to modify the bill so that its passage would not adversely impact small businesses, or those businesses located where no training programs exist within reasonable distances (in some cases, apprentices must travel 80 miles each way to receive certified training). The bill now moves to the House where efforts to modify the bill will continue. Next week the General Assembly is out of session for JFC and Bond break. Upon their return, work will continue on criminal justice reforms, including the introduction of a revamp of Delaware’s criminal code. Stay updated on legislative issues through our Chamber Action Network video series as well. Sponsored by Ruggerio Willson.
|
Archives
March 2024
Categories
All
|