Earlier this fall, the Delaware State Chamber of Commerce membership participated in a survey on their view of Delaware’s economy, key issues, and polices impacting business growth. The survey results will play a key role in the Chamber’s 2018 issue and advocacy strategy, including a continued focus on creating a successful environment for small businesses. We are listening to you as we build our advocacy agenda for 2018, which will include your top policy priorities:
As we build on the successes of 2017, your continued engagement is vital to advancing a prosperous business climate and attracting new enterprises to the state. A special thank you to members who took the survey. Please take a few minutes to review the survey results by clicking here.
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The Delaware Prosperity Partnership (DPP) held its first board meeting on October 20, 2017, at the new CSC® global headquarters in Wilmington. A 501c3 partnership created by legislation and signed into law by Governor Carney this past summer, the DPP combines the resources of the private sector and government to further economic growth in The First State. The board is co-chaired by Governor Carney and Rod Ward, CEO of CSC. John Riley was elected by the board as Interim CEO of the DPP, and a temporary office has been set up at One Commerce Center in Wilmington. John will focus on launching the initiative and recruiting a permanent CEO through a national search process. As the state’s primary resource for recruiting new business to Delaware, John will also work with the Delaware Office of Small Business, Development and Tourism under Cerron Cade’s direction to ensure a smooth transition of current projects and new opportunities.
As plans were being made to launch the DPP, the Amazon HQ2 project was announced. While the state government took the lead in responding to the proposal, it presented the opportunity to bring in people and resources from the private sector to support the project, and to closely examine Delaware’s location and workforce advantages, not just for Amazon, but for other prospects going forward. One of the exciting digital marketing tools that came out of the project was the “Options in Delaware” video. As you can see, while it was developed as part of the Amazon response, it is a great representation of Delaware, and suitable for use in other ways, including recruiting talent to the state. In addition to setting up an office, the DPP has launched an initial website, deprosperitypartnership.com, that includes basic information about the partnership and Delaware. In the coming weeks the site will be populated with additional information and ultimately become a resource for current Delaware businesses, as well as for those outside the state looking for a great place to expand or relocate. by James DeChene
BREAKING: Obama DOL's Overtime Rule Struck Down A Texas federal judge on Thursday invalidated the Obama administration’s controversial rule expanding overtime protections to millions of white collar workers, saying the U.S. Department of Labor improperly used a salary-level test to determine which workers are exempt from overtime compensation. In other news, the Adult Use Cannabis Taskforce meets for the first time next week in an effort to learn more about the possibilities and ramifications, positive and negative, of legalizing recreational marijuana. The State Chamber has a representative on this taskforce, and if you have questions, concerns, feedback on the issue, send it to me, and I will pass it along. The Chamber has expressed concerns related to labor law, including increased workplace-safety problems, higher worker-compensation costs, reduced productivity/attendance issues, and practical issues such as how to test for “under the influence” (or “impairment”). An Executive Order by Governor Carney to create an offshore wind taskforce was signed this week. There will be a business representative (unnamed as of yet) on the taskforce, and the State Chamber will be monitoring its progress. Next week is ChamberChase, the Chamber’s golf outing. Wednesday night before there will be a networking event at Lucky’s Alley & Eats. If you’re in Lewes, or nearby, come join us. We’re fun. And from Forbes this week, “If you live in Delaware and you compare your current paycheck with one from a year ago, you might notice that you've made a couple of extra bucks. Over the past year, Delaware was the U.S. state that recorded the greatest growth in hourly earnings. According to the Bureau of Labor Statistics, people employed in private industry in Delaware saw their average hourly earnings increase 11.7 percent from $23.85 to $26.64 between July 2016 and July 2017.” by James DeChene
A mostly quiet August is upon us so far, and this week, the excitement came at the beginning when Gov. Carney signed HB 226, establishing a Public Private Partnership focusing on economic development and bringing/retaining jobs in Delaware. As many of you know, this was a top priority for the State Chamber, and we are pleased to have the bill become law, but now the real work begins. Murmurings over next year’s budget, and an almost certain shortfall, are making their way through the state. Expected increases in school enrollments and Medicaid expenses (combined last year to be $150 million) are driving what could be another $300 million budget gap. How this hole will be filled is unclear as of now, but the hope is to have discussions prior to the start of legislative session to work out possible solutions. The Adult Use Cannabis Taskforce meets for the first time on September 6. I’m interested in any feedback from the business community on what legalizing recreational marijuana would mean for your business operations. Feel free to email me at: jdechene@dscc.com On August 1, 2017, The Mill and Innovincent presented the first Millenial Summit (#MillSummit), a full-day event held at the Chase Center on the Riverfront. Over 250 attendees, representing a variety of industries and passions, came together to network, learn from topic experts and explore the diverse community that Wilmington has to offer. The Delaware State Chamber of Commerce was pleased to have its Delaware Young Professionals Network involved with the event's planning committee.
The event kicked off with Sara Fischer, Axios media reporter, who took the audience through the data and trends of technology use among millennials. A panel on crafting one's personal brand followed, with Governor Carney giving closing remarks for the morning session. The keynote address was given by Ambassador Vlora Citaku, Ambassador of the Republic of Kosovo to the U.S. Her compelling journey from refugee to ambassador made for an inspiring speech, and a dynamic Q&A session with the audience. Multiple breakout sessions and panels were held throughout the day. DSCC's Events Manager and Program & Communications Specialist, Kelly Wetzel, served as a panelist on leadership through nonprofit and community involvement; and James DeChene, Senior VP Government Affairs, moderated an afternoon discussion with some of the youngest elected officials in Delaware about political and legislative engagement. To see the day's full lineup of panels and speakers, visit millsumit.com. by Mark DiMaio
We Work for Health Delaware (WWFH) is a grassroots initiative to illustrate how biopharmaceutical and medical innovation work together to create a strong and vibrant economy. WWFH Delaware brings together business, labor and community partners seeking to raise awareness about the vital role biomedical research plays in delivering life-saving technology, as well as well-paying jobs. We Work for Health Delaware took to Capitol Hill this week to meet with the Delaware Federal delegation to discuss renewing the Prescription Drug User Fee Act (PDUFA); elimination of the Medicare Independent Payment Advisory Board (IPAB); and maintaining a non-interference clause in the Medicare Part D drug program. WWFH Delaware also stressed the importance of keeping Delaware in the forefront of biopharma innovation as a driver of economic development and well-paying jobs for the state. The WWFH Delaware delegation was comprised of Reverend Robert Hall, Executive Director, Delaware Ecumenical Council on Children & Families; James Maravelias, President, Delaware AFL-CIO & WWFH Delaware Co-Chair; Helen Stimson, President, Delaware BioScience Association & WWFH Delaware Co-Chair; and Mark DiMaio, Director of Grassroots & Research, Delaware State Chamber of Commerce. The group met with Senator Carper, Senator Coons and Congresswoman Blount-Rochester and their staffs to discuss WWFH’s key issues and how elected leaders have a direct impact on policies that help Delaware’s research and development organizations prosper. by James DeChene
As widely reported, the FY2018 budget passed with a mix of new revenue and a number of expenditure cuts and other reductions. The ratio was about 48% new revenue ($182.7 million) and 52% cuts ($195.1 million), roughly meeting Governor Carney’s goal of a 50-50 split to fill a budget gap of $377.8 million. The new revenues are fairly easy to account for: increasing the corporate franchise tax ($116.1 million), raising the alcohol excise tax ($5.2 million), raising the tax on tobacco products ($11.9 million), and raising the realty transfer tax ($45.6 million), changes to insurance policy charges ($4.6 million) and one-time special funds ($3 million). Tax cuts, and reductions of proposed increases, came from, among other things:
Simply put, nothing contained in the revenue package is designed to be a fix for Delaware’s structural issues, and the list of funding issues the state faced this year only increase next year, including:
The Delaware State Chamber of Commerce believes in the time available between now and the end of 2017 should be focused on discussions and planning on how to address these issues in the next part of legislative session. Waiting to solve budget crises with a complicated series of steps, such as the removal of itemized deductions, or looking for new, last minute, sources of revenue makes for ill-formed policy. The ability to have in-depth discussions regarding the impacts of tax increases and spending cuts will go a long way to helping set Delaware on a path to prosperity. by James DeChene
The General Assembly finished out, for the first time, in what is called “extraordinary session” early Monday morning by passing a budget, a revenue package to pay for it, grants-in-aid, and the bond bill. Some of the highlights from the last few days in Dover include:
Also of note was the passage of a number of State Chamber priorities, which provides good news for our members. They include:
An important item to note: None of these increases are structural changes or work to address Delaware’s long term revenue and spending issues. Many of the same issues the General Assembly faced this year remain, with the added complication of next year being an election year. It remains to be seen the impact this year will have on future budgets, but the expectation at this point is that next year will be another painful year. by James DeChene
June 7th was the Chamber’s End of Session Legislative Brunch held at Dover Downs. Over 200 attendees heard from Ed Ratledge, Director of the Center for Applied Demography and Survey Research at University of Delaware, and Bob Perkins, Executive Director of the Delaware Business Roundtable, on issues impacting Delaware, the state budget going forward, and how best to foster economic development growth. Among the highlights were items previously mentioned in this space:
Attendees also heard from Senate President Pro Tempore David McBride and Speaker of the House Pete Schwartzkopf, who highlighted the state’s budget issues, their respective positions on economic development legislation, including modernizing the Coastal Zone Act, and the reorganization of the Delaware Economic Development Office. They also stressed the need for increased revenues to fund health care and education, the state’s two fastest growing expenses, which together account for over half of the budget. Their remarks adumbrated the potential for further revenue increases beyond the Governor’s proposed 50-50 split of new revenue and expense reductions. The House Natural Resources Committee voted 9-1 to release HB 190, a bill to modernize the Coastal Zone Act. It will face a floor vote next week. The hearing featured passionate testimony from both supporters and opponents, with supporters focusing on the need for the redevelopment of industrial sites currently a blight on Delaware’s landscape. Chamber President Rich Heffron suited up (literally and figuratively) to deliver the Chamber’s position of support. More updates to come next week as the bill continues to see action. By James DeChene
This week JFC met and voted to cut about $33 million from state spending, including eliminating the State Board of Education. Future meetings, and the process, have been put on hold until legislators pass a series of revenue packages equal to approximately $190 million. To date, the House has passed a measure to raise the Corporate Franchise Tax by $115 million, where it now faces action in the Senate. As has been discussed a, 50-50 split between new revenues and spending cuts concatenate to form the mechanism to balance the budget. Next week the General Assembly returns for June, with 13 legislative days left until the end of session on June 30. There are a number of hearings next week important to the business community, including HB190, which would update the Coastal Zone Act, a State Chamber of Commerce legislative priority. Also in committee will be a bill related to escheat that provides a number of technical corrections to SB13, an escheat bill passed earlier in the year. |
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