By Michael J. Quaranta

Unprecedented amounts of federal aid were awarded to each state as economic recovery continues. In Delaware, the State will receive over $1 billion of support, on top of other revenues that have previously been directed here. This transformational moment is upon us, so making top-quality investments in our future is critical. For me, I would put our choices into a couple of categories: the safest, the wisest and the riskiest.

Upgrading or repairing our infrastructure is a very smart and safe use of these resources. We need to get to and from places, survive on clean water, connect with our employers, schools, and commerce, and more. Another wise investment would be to clean up old or abandoned industrial sites and use these resources to remediate the environmental hazards developers cannot afford to do on their own. This puts these “brownfields” back into useful service and limits sprawl and development of “greenfields” or open space. Finally, workforce training and upskilling is another important strategy.

By James DeChene, Armitage DeChene & Associates

What a difference a year makes. At this time last year, concerns that Delaware could expect to see incredible revenue losses due to COVID-19 had a significant impact on not only the budget crafting process but also in how the Delaware Economic and Financial Advisory Council (DEFAC) approached its economic forecasting for much of 2020. This year, as was reported at the May DEFAC meeting, every single company that recently went for an Initial Public Offering (IPO) was a Delaware registered company, which increased Delaware’s corporate franchise tax revenue by 13 percent. In addition, realty transfer tax revenue was up 42 percent due to a housing boom, especially at our beach areas. While neither of these increases are sustainable, they do provide significant one-time money for infrastructure investment to help position Delaware for a strong future.

The Delaware State Chamber of Commerce has a history in advocating for infrastructure investment, including supporting legislation like HB200. This bill invests heavily into water and sewer projects, supporting changes to the Transportation Trust Fund to ensure more dollars are dedicated to project spending versus operational budgets within DelDOT, broadband development across the state, and more. The simple reason for this advocacy is the intersection between government spending, economic development, job creation, and return on investment (at the end of the project you have a tangible, bright and shiny “thing” that provides a needed service or function).

By Tyler Micik

The State Chamber’s Infrastructure and Transportation Committee met on June 28th for the second round of discussion around ideas on how the State could invest the additional $1 billion or more it's set to receive from the federal government. Committee members talked about the potential of creating a multi-flag university center in the City of Wilmington. Mayor Michael Purzycki joined the conversation and welcomed the idea, stating that schools are key to improving Wilmington’s social infrastructure.  
 
Other ideas discussed included making DE Route 1 an Interstate Highway, establishing Transportation Improvement Districts (TIDs) and Complete Community Enterprise Districts (CCEDs), supporting site readiness/environmental remediation, achieving 100% broadband access, and revising the Farm Preservation Act. Building a parking garage in Rehoboth and Lewes and making I-95 an innovation corridor were also mentioned.
 
The committee will meet again in mid-July to discuss these proposals and more. The State Chamber plans on using these ideas to curate a list of recommendations, which will be presented to the Governor at our Developing Delaware Conference on October 14. If you would like to join the conversation, please contact me at [email protected] or call (302) 576-6590.
 
The ideas listed above do not represent an official State Chamber position. They are a compilation of the thoughts shared during our meeting as we continue to develop formal recommendations.

By James DeChene, Armitage DeChene & Associates 

The General Assembly finished its first round of the 151st Session early in the morning July 1st. Much like last year, the work performed was largely conducted virtually, but with a much larger breadth and scope of legislation considered this year than during the height of COVID-19 in 2020.
 
That work included many bills we supported such as bills around our top priority of workforce development, passing the Clean Water Act — which the State Chamber has been working on for roughly four years — and a site readiness fund. Others bills that passed and impact businesses include increasing the minimum wage and expanding the plastic bag ban. It’s important to note that for bills that did not pass this year — like the legalization of recreational marijuana and Paid Family Medical Leave -- those bills remain “live” and will be worked on next year.
 
A brief overview of bills that passed are:

• A Ready in Six initiative to create a site readiness fund, SB127, passed and now goes to the Governor for signature. This fund will help offset the cost of development in targeted areas.
  
• Passage of HB200, the Clean Water Bill, now goes to the Governor for signature.
  
• A bill to expand the plastic bag ban, HB212, and now goes to the Governor for signature
• A bill that establishes a buy in for apprenticeship programs for public works projects, SB184, passed the and now goes to the Governor.
• Focus on Alternative Skills Training Program (FAST) passed the Senate. The bill sets aside money to offset the cost for those enrolled in an approved non-degree credit certificate program to help workers gain needed skills.
• SB15, increasing Delaware’s minimum wage, passed.
• SB12, the SEED+ bill increases eligibility for SEED scholarships and funding for Delawareans to attend Delaware Tech, even if they are not recently graduated from high school.
• SB95, also passed, which increases the Inspire scholarship program for Delaware State University.
• HB91, which establishes the definition of “unfair practice” passed. As previously noted, this bill was one where the State Chamber, and other groups, weighed in to achieve a compromise amendment.
• HB166, establishes the Elevate Delaware program. Elevate Delaware will provide payments for tuition and auxiliary expenses, up to $10,000, for individuals to attend an approved non-credit certificate program.

 
SO WHAT HAPPENS NOW?
Beginning late this summer and into fall will be the continuation of the State Chamber’s member-to-member meetings. These meetings are between Chamber members and members of the General Assembly. They consist of office visits or facility tours to showcase not only your business but also share how your company works and the impact various legislation will have on your bottom line. With the large numbers of newly elected members who have yet to meet many of their constituent businesses due to COVID-19, these conversations are more important now than ever.
 
These meetings will continue to highlight important pending legislation that will be worked on next year like: HB 150, legalization of recreational marijuana; SB 1, the Healthy Delaware Families Act; HB 205, Delaware EARNS Act; HB256 which will raise income taxes; and HB 94/HB266, which is related to tipped wages, will be considered next year. All of these bills have a direct impact on Delaware employers.
 
The General Assembly will be on recess until this fall when votes on redistricting will begin. The impact of redistricting will play a major role in the next 10 years of Delaware politics and policy, and always has the potential to see a few new faces. It’s largely believed that lower Delaware will pick up a House seat. It’s also probable a Senate seat will be moved from New Castle County to either Kent or Sussex. Then, in January, the second leg of the 151st Session will begin, which is also an election year.