by Mark DiMaio

The Chamber’s annual End-of-Session Legislative Brunch was held on June 7 at Dover Downs. The brunch marked the last official event for retiring Chamber President, Rich Heffron.

Attendees heard from Kurt Foreman, President & CEO of the Delaware Prosperity Partnership. Kurt discussed Delaware’s current economic situation as being “a glass half full.” Delaware has experienced moderate employment growth, with the construction sector leading the way and other employment sectors showing modest growth. Housing starts are the strongest they’ve been in several years and Delaware’s housing affordability is more positive than the US market overall. Mr. Foreman shared the Delaware Prosperity Partnership’s four main areas of focus:

• Business Development (Recruitment of new companies)
• Existing Business Engagement
• Innovation Agenda – building on past successes in Delaware
• Talent Support – DPP will begin an initiative in late 2018/early 2019

James DeChene, the Chamber’s Sr. Vice President of Government Affairs, spoke about the “Tale of Two Budgets.” Last year Delaware faced a $400 million-dollar budget shortfall followed by a nearly $400 million-dollar budget surplus this year. The fundamental question here is how we can make the budget process easier, and more efficient and accurate. Boom and bust cycles may be natural, but helping to smooth the highs and lows will help put Delaware on more stable, certain financial footing. The Chamber strongly supports a bipartisan plan put forward by the Governor and State Treasurer to create a true “rainy day” fund to be used in lean budget times and added to in good economic times. This proposed plan requires a constitutional amendment, and requires passing changes to our tax structure and limits on spending. The constitutional amendment needs to be passed this year, as it takes two consecutive legislative sessions to become a part of Delaware Constitution.

Attendees also heard from Senate Pro Tempore David McBride and Speaker of the House Pete Schwartzkopf. Senator McBride highlighted the state’s budget and the fact that it would be completed well before the end of June. However, he wasn’t sure that the Senate would pass the minimum wage bill this year. He gave credit to the State Chamber for its role in the passage of the Coastal Zone Modernization Act last session. Representative Schwartzkopf spoke on the passage of legislation to bring $580 million dollars of private investment to the Port of Wilmington. He also pointed to the state budget’s restoration of the senior drug program, funding for special education and salary increases for teachers.  

This year’s Small Business Guardian awards were presented to Senator Brian Pettyjohn and Representative Harvey Kenton.

by James DeChene

With the General Assembly back this week a few bills of interest to the business community were worked in both committees, and on the House and Senate floors.
 
SB204 related to storm water management is a bill the business community and DNREC have been working on together. It provides a way for redevelopment to operate by establishing interim standards and criteria in order to permit redevelopment projects to move forward while revised regulations are being drafted. The interim standards set forth in this Act would effectively "sunset" upon the adoption of regulations governing redevelopment. 
 
SB80, related to the electric industry, allows for investments in infrastructure to be included as an increase without having to go through a PSC rate case. The benefit is to help lengthen the time between filing rate cases, which are costly, whose cost then gets passed along to the rate payer. The bill was a joint effort between large energy users and the energy industry.
 
SB113, a bill related to the SEU, would provide businesses the opportunity to put a voluntary assessment on energy and/or capital improvements for the life of the unit. The potential benefit to a business is the ability to take a longer term loan that may not be granted under normal borrowing practices. The bill passed the Senate, and now heads to the House to be assigned to committee.
 
With 10 legislative days left, there are many bills of interest remaining including the budget, bond bill, sexual harassment training, marijuana legalization and apprenticeship training requirements on certain public works projects—all in all a jam packed agenda. More to come.

Mark Vergnano speaks for Chemours, advocating for UD's STAR Campus. STAR has great potential regarding economic development and is an asset that should be supported.

The General Assembly was in session this week, with a number of bills related to business either in committee or being worked on the House or Senate floor.
 
Of note, HB409, while released from House Labor Committee, will be amended based on State Chamber input. The bill would modify how, and when, companies notify Delaware Department of Labor of significant layoffs. HB406, which would allow companies with five employees or more to offer ERISA style health plans, cleared the House Economic Development Committee, and will now be heard on the House floor. A bill to lower the age for servers in restaurants to serve alcohol from 19 to 18 was also heard in the House this week.
 
Additionally, the State Chamber’s Small Business Day in Dover was yesterday, May 10.  Over 70 business representatives came to Legislative Hall to hear from lobbyists on the issues facing Dover, met with their elected officials, and had the opportunity to watch the General Assembly conduct their business during legislative session.
 
The General Assembly is in recess for three weeks, and returns on June 5. They will then work straight through to the end of June.

As part of our Spring 2018 survey, we asked participants to list their top three policy concerns. We posed a similar question in our Fall survey with comparable results. Last survey, 50% of our survey respondents said that the Cost of Health Care was their #2 policy priority. We heard you loud and clear and are addressing this issue by working with partner organizations and stakeholders around the state.
 
With that question out of the mix in our current survey, members are telling us that Economic Development remains the #1 policy concern. That is followed education/work force development and permitting delays/regulatory issues. 

by James DeChene

​This week, the Senate passed an amended version of the Angel Investor tax credit legislation, and it’s on its way back to the House for a vote. The bill would provide a refundable tax credit for qualified investors investing in qualified Delaware companies, and is meant to encourage investment in startups. The State Chamber has been supportive of the bill and is looking forward to House passage.

In the House Labor Committee, the vote was deferred on legislation mandating employee sexual harassment training. Concerns were raised on proposed length of training time, how training would take place, liability protections for employers, as well as how independent contractors would be trained and protocol for their would-be-new ability to bring a complaint against a contract holder. The bill sponsor is working on an amendment, and the Chamber will continue to provide feedback through this process.

Next week Senate Labor committee will hear SB170, the latest version of a minimum wage increase.

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 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.

Contributed by DSCC Member Adesis