by James DeChene
In the last week, I’ve heard two presentations from the Office of Management and Budget on how they’re starting to put together next year’s budget, the November public hearing schedule (they start on November 22nd, and can be found here), and how DEFAC’s forecasting will be critical at their December meeting. To date, DEFAC has estimated a $167 million revenue shortfall for FY2017. What remains to be seen this fall are how “door openers” will impact that number. Door openers include the final student enrollment numbers public schools report to the state, the final Medicaid numbers and, this year, the prorated raise amount for state employees. The best guesstimate on these additional increases are in the $150 million range, meaning budget writers need to find between $300 and $400 million in order to meet budget. Shifting to how the state spends its money – 73% of the FY2016 budget is allocated to employee salaries and health care, pensions, Medicaid and debt service. Without cuts to personnel or programs, these numbers will increase next year. The largest growth of public sector employees are in education, as student enrollment in public schools continues to rise as more kids are transitioned from private/parochial schools back to public (1,500 students are added on average per year). Over 228,000 are eligible for Medicaid (over 25% of Delaware’s population). Revenue growth in FY17 is expected to be 1.5%, and FY18 will see 0% growth as currently forecast. These are all items the State Chamber has talked about for the last few years—specifically on the need for there to be structural changes to how the state collects and spends money. Many of these ideas were highlighted in the Delaware Business Roundtable’s Growth Agenda, and we support their immediate adoption. This next year will be another difficult money year, with no easy solutions, but the business community, including the State Chamber, has proposed ideas on how to invest in economic development, make Delaware more attractive to outside entities, and to help turn our economy around. We hope the 149th General Assembly will discuss and debate these issues recognizing that without action, our budget will continue to suffer.
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by James DeChene This week, former Governor Mike Castle was the speaker at the Chamber’s Leadership series. He spoke on a variety issues, but focused on, how as a leader in public service it was important to surround himself with talented individuals and allowing them the leeway to do their job well. Providing insight on his entrance into public service, from helping to organize the Young Republicans group, to his run for the State Senate, his time as Lt. Governor, Governor and ultimately Delaware’s Congressman for 18 years, he commented that many of his successful initiatives started from conversations he had with constituents, such as focusing on Delaware teacher pay and the importance of early childhood education. He also emphasized the role of government is not to create jobs, but to create an environment where businesses can grow and flourish, highlighting that as governor Delaware enjoyed one of the most prosperous times in the state’s history. Governor Castle also spoke about the tone and tenor currently in Washington, D.C. Pointing to Delaware and its history of working together to solve important problems, like how the parties came together to create the Financial Center Development Act, Governor Castle was lamenting the relatively recent polarizing ideology from both parties that has crippled Congress’ ability to tackle and solve the important problems we face, a record national debt, the need for meaningful tax reform policy and for an education policy that prepares young Americans for life after school. by James DeChene
Two stories mentioned in this week’s Legislative Report bear some additional coverage. The first, from the News Journal editorial “Hard Economic Lessons For Delaware” pinpoints what the State Chamber has been talking about for the last few years, specifically on what appears to be a lackluster recovery from the Great Recession. With metrics and rankings all over the map, the picture of how Delaware’s economy has fared over the last few years remains murky at best. What remains, regardless of economic rankings is that public education, and other quality of life issues such as public safety, remain areas where much work needs to be done regardless of how Delaware compares economically to other states across the country and within our region. The other story comes from the Wall Street Journal outlining how factories are struggling to find workers. This is a story that rings true here in Delaware. For local manufacturers, a third of their collective workforce could retire within the next few years, leaving a major vacuum in employment. Add to that the profound difficulty manufacturers are having in finding suitable replacements, not just for engineering or management positions, but, most problematically, for entry level workers not requiring an advanced degree. Working together with the Delaware Manufactures Association, DelTech and the Governor’s office, we have started a successful program to help prepare high school students for these jobs. But and the range and scope of the education issues Delaware faces has become stark. This is becoming a constant, and repeated, refrain, from the State Chamber of Commerce and our members—Delaware’s education system requires a revamp if we want to have a workforce competitive to those around us– regionally, nationally and internationally. We are currently the 5th highest spend per student for the end result of 33% of Delaware 8th graders are proficient in math and English, with 60% of high school graduates who enroll at DelTech requiring remedial classes. These results do nothing to push Delaware forward, and will soon have even more of an impact on Delaware’s economic rankings when businesses choose not to come to Delaware because they don’t have access to a strong and vibrant (and educated) workforce. The News Journal has it right that education reform is a key component in securing Delaware’s future. By Robert Perkins
Executive Director, Delaware Business Roundtable PerkinsDelaware must fundamentally change its approach to economic development and nurture a growing entrepreneurship base in the face of intense competition for jobs, investment and talent, according to a framework commissioned by the Delaware Business Roundtable released on Wednesday. The Delaware Growth Agenda provides the private sector’s strategic framework for pursuing a new long-term approach to economic development in the state, including public policy recommendations centered on three strategic goals to be implemented over the next five years. “The vision of the Delaware Growth Agenda is that our state will focus its efforts on becoming a global magnet for leading-edge technologies, talent and investment,” said Mark Turner, chairman of the Delaware Business Roundtable and president and CEO of WSFS Financial Corporation. “This framework puts forth clear-eyed, achievable strategic goals and strategies that can accelerate Delaware’s economic engine – but only if the public and private sectors work together to make that vision a reality.” The non-partisan, forward-looking framework is based on interviews and guidance from more than 100 Delawareans, including representatives from economic development organizations, higher education institutions, businesses, government, labor and non-profit organizations. The framework envisions an even stronger and more robust partnership between the public and private sectors to guide future success. The framework recommends: Building an entrepreneurship and innovation ecosystem. This includes bolstering federal, state and private investment in higher education, and emphasizing the healthcare, science and technology fields, engineering and entrepreneurship programs. The framework calls for the creation of an “Innovation District” as a destination for entrepreneurs and startups, as well as for marketing Delaware to regional and national angel investors and risk capital networks. Pursuing a new approach to economic development. The framework calls for establishing a public-private economic development organization, crafting a new comprehensive statewide economic development strategic plan, and a marketing campaign that pursues new investment and jobs in key industries – including financial services, business services, education and knowledge creation, manufacturing, and distribution. Enhancing Delaware’s business climate. The Growth Agenda says the state must ensure Delaware’s infrastructure meets the needs of a 21st century economy, including updating the Coastal Zone Act to provide greater flexibility in redeveloping brownfield sites. The framework also calls for improving the state’s public education system, taking a leadership role in facilitating more efficient development and permitting processes, and creating a Futures Council of Delaware. The full recommendations under each of the goals and strategies can be found in the framework, which was developed collaboratively by TIP Strategies and the Delaware Business Roundtable. TIP Strategies is an economic development strategy firm that has worked with states and communities across the country. In addition to presenting a strategic vision and goals, TIP Strategies also examined Delaware’s economic health over time compared to other states in the region. Among the findings of the framework:
We are facing real challenges, but the Growth Agenda encourages a reset of economic development in Delaware over the next five years. First and foremost, things cannot continue as they have because Delaware’s existing companies – nor the industry sectors themselves – can be counted on to serve as engines of future growth. We must take a new approach, and the public and private sectors must work together to get it done. The Roundtable’s intention is for the Delaware Growth Agenda to spark a much-needed discussion of how to expand economic opportunity and jobs throughout the state during the 2016 election cycle that will result in concrete action thereafter. It comes on the heels of the Roundtable’s 2015 study of state finances, which clearly articulated the structural budget challenge facing the state as it wrestles with unsustainable revenue sources and spending patterns and strongly recommended that Delaware focus on expanding economic growth as one part of the solution. The Delaware Business Roundtable plans to continue to promote sustainable economic expansion and growth in Delaware. About the Delaware Business Roundtable The Delaware Business Roundtable is a non-partisan, volunteer consortium of CEOs whose companies collectively employ over 75,000 people in Delaware. Since its inception in 1981, the Roundtable’s broad mission is to enhance the quality of life in Delaware by promoting commerce, job creation and select public policy issues. In recent years, the Roundtable has been a leading supporter of public education transformation and entrepreneurs in Delaware. About TIP Strategies TIP Strategies, Inc. (TIP) is a privately held economic development consulting firm, with offices in Austin and Seattle. Established in 1995, TIP is committed to providing quality solutions for public and private sector clients. TIP has completed more than 300 engagements across 38 states and 4 countries. The firm’s primary focus is strategic economic development planning. In addition, TIP has experience with entrepreneurship, target industry analysis, workforce, and redevelopment. The firm’s methods establish a clear vision for economic growth. Community leaders across the country have embraced the TIP model of Talent, Innovation, and Place to achieve successful and sustainable economies. Delaware State Chamber of Commerce President & CEO Richard Heffron released the following statement applauding the Delaware Business Roundtable releasing their Delaware Growth Agenda, which outlines steps Delaware should take to secure its economic future.
“Today’s release of the Delaware Business Roundtable’s Delaware Growth Agendareinforces what the Delaware State Chamber of Commerce, and other business groups, have been saying—that in order for Delaware to have sustained and successful long-term economic growth there needs to be a commitment by elected leaders to make difficult decisions.” “The industries that have long defined Delaware are changing, and Delaware must adapt and change to remain relevant to business on decisions to expand or relocate here. A renewed commitment to education and workforce development, developing an entrepreneurship climate, continuing a nimble approach to economic development and focusing on pro-business legislation and regulations all must be a part of a successful Delaware.” The Delaware State Chamber of Commerce is dedicated to promoting an economic climate that strengthens the competitiveness of Delaware businesses and benefits citizens of the state. Founded in 1837 as the Wilmington Board of Trade, the Delaware State Chamber of Commerce has a long history as the largest, most influential business organization in the state. Learn more at www.dscc.com. By Mark DiMaio Last spring we lost our dear friend and colleague, John Taylor. John was an integral part of the Chamber family and his leadership as president of the Delaware Public Policy Institute moved Delaware forward on significant policy issues. Most importantly, John had a deep dedication to improving education in Delaware. Throughout his professional career, John was an educator. He began his career as a teacher, then served as the assistant to superintendent for Wilmington’s Board of Education. John’s education background and his ability to share information and make connections served him well as he rose to become the editorial page editor for The News Journal. As founding member of the Vision Coalition, John’s leadership and directness were instrumental in building an impactful public-private partnership advocating to improve education in Delaware. His leadership style was always straightforward, clear-headed and often unwavering. At the same time, he was a humorous and truly humble man. In honor of John’s leadership and commitment to education, the Delaware State Chamber of Commerce has created the John H. Taylor Jr. Education Leadership Award to recognize someone in the community who has provided sustained leadership in advancing Delaware education and who, by doing so, has also made our community a better place to live and work. This year’s Superstars in Education program is proud to present the inaugural John H. Taylor Jr. Education Leadership Award to Dr. Jack P. Varsalona, president of Wilmington University. We recognize Dr. Varsalona for his 40 years of leadership, vision and personal contributions advocating to improve Delaware education. He is one of the founders of the Delaware Association of Independent Colleges and Universities and a member of the Ursuline Academy Board of Trustees. He is also a member of the Fresh Start Scholarship Foundation Advisory Board in addition to being the 2013 recipient of the Fresh Start Scholarship Foundation’s Muriel E. Gilman Championship Award for his outstanding contributions to the success of the Foundation. Varsalona’s passion for excellence in education is also apparent in his work as a team chair with the Middle States Commission on Higher Education, the accrediting body that helps other colleges and universities to maintain high scholastic and student life standards. Varsalona is heavily involved with community organizations, including the United Way of Delaware, the Wilmington Renaissance Corporation and First State Innovation. He also sits on the board of directors for the Boys and Girls Club of Delaware. In 2014, Varsalona was the inaugural recipient of the Father Roberto Balducelli Appreciation Award for his extensive work in the Italian-American community and support of Italian artistry. Varsalona was named Advocate of the Year by Goodwill of Delaware and Delaware County in May, 2015, for his substantial scholarship support and other contributions to Goodwill’s mission of helping individuals to overcome barriers to improving their lives. The John H. Taylor, Jr. Education Leadership Award will be presented on Monday, May 9 at the Superstars in Education Reception & Awards Ceremony. Click here to learn more. by Mark DiMaio The Delaware State Chamber of Commerce announced that the inaugural John H. Taylor, Jr. Education Leadership award goes to Dr. Jack P. Varsalona, president of Wilmington University. The award will be presented at DSCC’s annual Superstars in Education Reception & Awards Ceremony at Wilmington University’s Doberstein Admissions Center Auditorium, May 9, 2016 at 4:45 p.m. The John H. Taylor, Jr. Education Leadership Award recognizes someone within the community who has provided sustained leadership in advancing Delaware education and who, by doing so, has also made our community a better place in which to live and work. “I’m honored to receive this award from the State Chamber for many reasons, but most especially because it has John Taylor’s name attached to it,” said Varsalona. “John’s integrity and his concern for students in Delaware were second to none. He was passionate about education reform and was well respected for all he wrote and did toward that end in this state.” With 40 years of experience as a leader and advocate in Delaware education, Varsalona is recognized for his leadership, vision and personal contributions. He is one of the founders of the Delaware Association of Independent Colleges and Universities and a member of the Ursuline Academy Board of Trustees. He is also member of the Fresh Start Scholarship Foundation Advisory Board in addition to being the 2013 recipient of the Fresh Start Scholarship Foundation’s Muriel E. Gilman Championship Award for his outstanding contributions to the success of the Foundation. Varsalona’s passion for excellence in education is also apparent in his work as a team chair with the Middle States Commission on Higher Education, the accrediting body that helps other colleges and universities to maintain high scholastic and student life standards. Varsalona is heavily involved with community organizations, including the United Way of Delaware, the Wilmington Renaissance Corporation and First State Innovation. He also sits on the board of directors for the Boys and Girls Club of Delaware. In 2014, Varsalona was the inaugural recipient of the Father Roberto Balducelli Appreciation Award for his extensive work in the Italian-American community and support of Italian artistry. Varsalona was named Advocate of the Year by Goodwill of Delaware and Delaware County in May, 2015, for his substantial scholarship support and other contributions to Goodwill’s mission of helping individuals to overcome barriers to improving their lives. Please register for the event by visiting our website. It’s not every day that you get to “make someone’s day”. Earlier this week, I had the opportunity to make six outstanding school program’s “day” by notifying them at they were 2016 Superstars in Education winners. Superstars in Education (SSE) is charged with recognizing outstanding educational programs and individual achievements. The SSE Program highlights excellence in science teaching, integrated classroom technology practices, and school-to-career partnerships. This year, the Superstars in Education Selection Committee reviewed 42 exceptional nominations and the following six programs were chosen as Delaware’s best.
Project SEARCH – New Castle County Red Clay Consolidated School District Project SEARCH is a nine-month school-to-work collaborative transition program for students 18-21 with intellectual and developmental disabilities. The program operates entirely within a host business. Total workplace immersion facilitates a seamless combination of classroom instruction, career exploration, and on-the-job training and support. Biomedical/Christiana Care Partnership Conrad Schools of Science This program is only four years old and has already been making an educational impact on Conrad Schools of Science. Students can now immerse themselves in specific careers including but not limited to Respiratory Therapy, Neurology, Genetic Counseling, Nutrition, Optometry, Audiology and Oncology. Outdoor Classroom F. Niel Postlethwait Middle School This program was established in 2010 as a multi-purpose, cross-curricular, learning space. It is a part of modern school initiatives that focus on improving health, academic success, behavioral development, and prepare children for challenges and opportunities they might face later on in life. The classroom also strives to promote stewardship of nature and social responsibility. Teacher Professional Learning Program Sussex Central High School With the integration of the digital platform of Schoology in Delaware schools, Sussex Central’s goals were to enhance the effectiveness of its teacher professional learning experience. With a blended learning format in classrooms, videos, texts, research, discussion boards, photo albums and collaborative activities have taken from simply a face-to-face to a more well-rounded experience. 21st Century Stars S.T.E.A.M. Program William Henry Middle School An inclusive program that provides academic and social enrichment opportunities to 5th and 6th grade students in a nurturing and supportive environment, topics covered include music, service learning, sports, entrepreneurship, art, dance, culture and S.T.E.A.M. technology (Science, Technology, Engineering, Arts and Math). Accelerating Preliterate English Language Learners (A.P.E.L.L.) Program Indian River School District Located in the Carver Center, this program serves some of the district’s most needy learners. It is designed for newly arrived English Language Learners (EL) who have had major interruptions in their schooling, for generally, two or more years. Please join Delaware Governor Jack Markell and the Delaware business community as we celebrate the 2016 Superstars in Education winners with a reception and awards ceremony on Monday, May 9, 2016 at 4:45 p.m. at Wilmington University’s Doberstein Admissions Center Auditorium. by Mark DiMaio
This year’s Superstars in Education Program with feature the inaugural John H. Taylor, Jr. Education Leadership Award. John was a passionate advocate of improving education and fairness for Delaware’s children. Throughout his professional career, John was an educator. He began his career as a teacher, then served as the assistant to superintendent for the Wilmington Board of Education. John’s education background, coupled with his ability to share information and make connections served him well as he rose to become The News Journal Editor before becoming President of the Delaware Public Policy Institute. As founding member of the Vision Coalition, John’s leadership and directness were instrumental in building an impactful public-private partnership advocating to improve education in Delaware. John’s leadership style was always straightforward, clear-headed and often unwavering and at the same time he was truly humble and humorous. John H. Taylor Jr. Education Leadership Award seeks to recognize someone who’s not only provided sustained leadership in advancing Delaware education but has made our community a better place to live and work. by James DeChene
Reported this week in the News Journal, 42% of Delaware students entering their freshman year of college at a Delaware school are required to take remedial classes, for which they receive no credit, and more importantly, on material they should have learned in high school. Delaware, it is noted, is 14th in the nation for education spending per student, yet 40th in terms of student achievement. The billion-plus dollars we spend on public education represents over a quarter of the annual budget, and is matched only by the state spend on public health. Delawareans, and especially the business community, should be appalled at these numbers. These students represent the future of Delaware’s workforce, who will be stewards of the economy, and quite simply they are not, as a whole, receiving the education they need to be successful. Even more alarming is the flip side of the coin not mentioned in the article—if this many college bound students are forced to take remedial classes to bring their knowledge base up to basic competency, what is happening to the students who aren’t going to college? What skills gap do they face, and how do they position themselves to achieve a measure of success? Anecdotally, we hear that employers are spending more and more time and resources to educate new hires on basic math and English skills in an effort to make them productive. This trend seems to be growing, and represents a glaring fundamental issue with Delaware’s education system. More and more students are graduating without the basic skills to be successful, and the incremental gains we see are nowhere near where they need to be, and certainly not worth the amount of money we spend. Ultimately there needs to be a change in how education is provided in Delaware. Frustration is growing surrounding every facet of public education—the curriculum, the amount of testing, the amount of money spent, and on outcomes. For Delaware students to have the chance to compete and be successful in life, the primary foundation, education, needs reform. |
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