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:
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.
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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
Balance the state budget with new revenue sources and cut government spending
Encourage entrepreneurship and a diverse economy - strong business climate to attract new business
Streamline land use and permitting process – less regulation overall
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.
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.
4. Concerns About Local Schools Improving education outcomes is a key factor in developing a skilled workforce and attracting new business to Delaware.
5. Cost of Permitting and Regulation Compliance
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.
2. Cost of Health Care The Chamber recognizes the growing problem surrounding health care costs.
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.
4. Education Reform (K-12) Improving education outcomes is a key factor in developing a skilled workforce and attracting new business to Delaware.
MANUFACTURING MATTERS: Adesis Grows Business and Expands Fundamental Chemistry Capabilities2/6/2018 Contributed by DSCC Member Adesis Adesis, Inc., a wholly-owned subsidiary of Universal Display Corporation (Nasdaq: OLED), today announced that it will open a new suite of state-of-the-art laboratories in Delaware and expand its organic chemistry team and R&D programs. This additional footprint is expected to help drive growth opportunities in areas including next-generation OLED (organic light emitting diode) emitter and host materials and meet the growing demand for the Company’s custom organic synthesis, research & development, and specialty manufacturing services. Adesis also announced that it became a sponsor of Delaware Innovation Space (DISI) and joined its entrepreneurial innovation community. Working with DISI, Adesis signed an agreement for approximately 7,000 square feet of laboratory space at the Experimental Station in Wilmington, Delaware. The new suite of laboratories, which includes additional ancillary work and meeting space, is expected to augment Adesis’ on-going operations and recently-purchased 47,500 square feet headquarter building in New Castle.
“Delaware is home to a number of great chemical and manufacturing companies like Adesis, who are committed to making a world-class product with a great local workforce,” said U.S. Senator Christopher Coons (D-Del.). “I am delighted to see Adesis and their parent company UDC grow in Delaware as they expand their market reach and product offerings to more users around the world.” “We are pleased to announce our expanding footprint and increased investment to further boost research, innovation and job opportunities in Delaware,” said Andrew Cottone, President of Adesis, Inc. “As a leading organic synthesis CRO (contract research organization), we are adding to and extending our discovery services and process development capacity for customers across the pharmaceutical, chemical, biomaterials, and catalysts industries. We are enhancing our productivity and effectiveness by streamlining the technology transfer and optimizing the workflow from basic research to specialty manufacturing. Furthermore, by co-locating in our New Castle headquarters and the Experimental Station, we believe that we are building a world-class technology and manufacturing hub to support our customers from innovation to commercialization.” “Adesis continues to invest in Delaware, and we are thrilled that the company will bring its long track record of innovation to the Delaware Innovation Space,” said Governor John Carney. “We partnered with DuPont and the University of Delaware to create the Innovation Space to foster growth of early-stage scientific-based companies, and encourage collaboration among Delaware’s most talented innovators. The addition of Adesis will support that mission, and we’re thankful for the company’s continued partnership.” This recent expansion by Adesis was rapidly enabled by the seamless cooperation of the Delaware government and business leaders who have fostered a robust scientific ecosystem. “The Delaware Innovation Space is pleased to be able to support the growing needs of Adesis and accelerate its business forward right here in Delaware,” said Bill Provine, CEO of the Delaware Innovation Space. “Adesis will be a great new member of our science-based innovation community, and we look forward to working with them to further capitalize on the strengths of our new entrepreneurial ecosystem.” Adesis has also been assisted by the newly formed Delaware Prosperity Partnership (DPP). The DPP was recently created by Delaware as a public/private partnership to accelerate economic development efforts. “It has been a pleasure working with Andrew Cottone and Adesis to help facilitate their Delaware expansion, both in New Castle and at the Delaware Innovation Space,” said John Riley, Interim CEO of the DPP. “This would have been difficult to accomplish had the State, DuPont, and the University of Delaware not set the foundation for success with the formation of the Delaware Innovation Space earlier this year.” |
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