by Mark DiMaio

On Wednesday, October 4, the PPG Dover plant marked National Manufacturing Day (October 6, 2017) by welcoming Dover High School students that participate in the Delaware Technical Community College’s Advanced Manufacturing Pathways Program to the facility. The students, along with instructors and representatives from the Delaware Manufacturing Extension Partnership (DEMEP), toured PPG Dover and heard presentations about the plant’s processes and products.  

“National Manufacturing Day is exciting for PPG because it presents an opportunity to show students and community members what a manufacturing plant is really like,” said Neal Nicastro, PPG plant manager, Dover. “We will educate the students about the advances in science and technology that have transformed manufacturing into a great industry with many career options.”

This is the PPG Dover plant’s fourth year hosting an event with local students for National Manufacturing Day - an initiative organized by the National Association of Manufacturers (NAM) to address the skilled labor shortage, connect with future generations of manufacturers and ensure the success of the manufacturing industry. The PPG Dover facility, which employs approximately 80 people, makes interior and exterior paint for residential and commercial applications under the OLYMPIC®, PPG PITTSBURGH PAINTS® and PPG PORTER PAINTS® brands.

by James DeChene

Since 2002 Delaware had been ranked #1 in The Institute for Legal Reform’s Harris Poll Lawsuit Climate Survey. This year’s survey finds Delaware dropping to #11.

According to the report, “Participants in the survey were comprised of a national sample of 1,321 in-house general counsel, senior litigators or attorneys, and other senior executives at companies with at least $100 million in annual revenue who indicated they: (1) are knowledgeable about litigation matters; and (2) have firsthand, recent litigation experience in each state they evaluate.”

While Delaware still scores high in key element categories of scientific and technical evidence, trial judges' competence, quality of appellate review, and enforcing meaningful venue requirements, it fell significantly in Treatment of Class Action Suits and Mass Consolidation Suits (from #1 to #26) and Trial Judges’ Impartiality (down to #15).

When I asked about specifics that were factors in Delaware’s drop, I was given a handful of recent court decisions and specific pieces of legislation passed by the General Assembly. From my perspective, no one decision or bill by itself precipitated the drop, instead the reasons for the decline seem to be a shift away from supporting what made Delaware a top corporate legal environment for so long. In fact, even though Delaware scored #1 in 2015, I was given warnings then about a potential slide in rankings if Delaware continued to focus on legislation and issued court decisions that were increasingly plaintiff friendly.

I’ve written about these issues before, and seemingly often, which include Delaware’s approach to abandoned property, the fee shifting debate that took place a few years ago resulting in the passage of SB75 that reversed the “loser pays” model of litigation, and the ATP Tours, Inc. v. Deutscher Tennis Bund decision that precipitated SB75.

In fact, over the last few years, Delaware’s cache has dropped when reviewed by other organizations as well. For example:

• Forbes ranked Delaware 22nd among the states in 2016. The ranking lauded the state’s positive economic outlook, as shown by its increase in jobs and its business-friendly corporate law. Forbes’ cited Delaware’s low business costs and strong labor supply among its most positive factors, but gave Delaware poor marks for its quality of life, regulatory environment, and economic climate. This year marks a continued fall on the Forbes rankings from 11th in 2014 and 17th in 2015.
• Delaware also fell in CNBC’s “America’s Top States for Business” rankings. Delaware ranked 40th in 2017, its lowest score in recent years. It placed 37th in 2016, 38th in 2015, and 38th in 2014. Once viewed by CNBC as first in the nation for its business friendliness, Delaware came in 22nd in that category. The state’s greatest challenges are its high cost of living, education system, high cost of doing business, and lack of infrastructure. Its greatest drops from 2016, however, were in the areas of its economy (26th to 39th), quality of life (28th to 37th) and business friendliness (11th to 22nd).
• Chief Executive’s annual survey of CEO’s ranked Delaware 16th in 2017, a slight drop from the prior year. CEOs praised Delaware for public-private partnerships and new science-based businesses. Delaware placed 23rd in 2014, 20th in 2015, and 13th in 2016.
• Delaware’s business tax climate ranks 19th among states in 2017, according to the Tax Foundation. This is a 5-point fall from 14th place in 2016 and its lowest score in recent years.
• U.S. News & World Report’s 2017 “Best States” report ranked Delaware’s economy 9th, including 7th for business environment, 8th for growth, and 18th for employment. The state’s overall rank was 20th. This year is the first time U.S. News has ranked states.

The fact remains that the constant drip of decisions and legislation designed to support plaintiffs over business has led directly to where Delaware is today: a world where South Dakota is ranked as having the top business legal climate, and where Delaware is on the decline according to recent national ratings. 
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One thing remains constant, however. If Delaware continues its current trend, our image will continue to suffer. Delaware relies on the billion dollars in revenue it receives each year from companies choosing to incorporate here. We should be doing what it takes to retain our corporate image if there is to be any realistic expectation of that being the case in the future.

by Michael Smith
University of Delaware Director Strategic Initiatives/Partnerships, College of Health Sciences

Tuesday morning, August 22, we topped off the new Tower on the University of Delaware’s STAR Campus. Many in the business community are used to the groundbreaking and the ribbon cutting, but the top off is something that is extra meaningful for UD.
 
Historically, this started with the Scandinavian religious rite of placing a tree atop a new building to appease the tree-dwelling spirits displaced due to construction. Today, the top off symbolizes community, partnership, research, education and innovation. UD’s impact goes beyond the classroom and today this top off showcases our commitment to Delaware’s future and the impact the University of Delaware will have on economic development for the state of Delaware. This is a milestone moment for the community, University of Delaware and the state, as we continue to transform the former Chrysler Manufacturing plant into a new hub that mixes research, education and industry into the innovations of tomorrow.
 
The College of Health Sciences will occupy floors 2-7. Floors 8-10 will be spec space for outside companies. There will also be ground floor space available for amenity businesses. The college space will include a 300-person auditorium for events and classes, demonstration kitchen, child nutrition lab, and sleep lab. It will also house augmented reality and simulation space, innovation and maker space, research space, conference rooms and office space. The Tower will create a unique environment for the collision and collaboration of industry and partnering organizations that will drive economic development for the state of Delaware.
 
The Tower will open August of 2018. Come see it for yourself. As we inspire, impact and innovate, we need you to partner, dream and collaborate with us to drive STAR Campus, UD and the state of Delaware forward. The sky is the limit!

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:

• Funding grants-in-aid at 80% of FY2017 levels ($8 million)
• Cuts to flexible education spending ($26 million)
• Increases in employee cost share for healthcare ($2 million)
• Reducing the senior citizen property tax credit ($5 million)
• Overall non-personnel state agency cuts ($3 million)
• Pension adjustments ($12 million)
• Eliminating WEIC funding ($7.5 million)
• Cutting 200 positions within state government ($5 million)
  
  

Among the questions that remain are what happens next year, and more importantly, did this year’s mix of increases and cuts put Delaware on a path to not face a substantial budget crunch next year?  Many think the answer is, “No”.

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 cost of public employee health care
• The rising cost of Medicaid spending
• Increases in overall public school enrollment, including steady increases of children with special needs
• Revenue growth projections that are flat (DEFAC forecasts that FY2019 revenue will be .5% higher than FY2018)

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.
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by James DeChene

This week, the Small Business Alliance, a State Chamber of Commerce committee focused on the small business community, held their annual Small Business Day in Dover. More than 50 business leaders heard from veteran lobbyist Bobby Byrd, of The Byrd Group, as he gave attendees a primer on how best to convert their message to legislators by effectively lobbying. After, attendees participated in the House Small Business Caucus meeting, which has an excursus on the impacts of the pending budget issues (including education funding, tax increases and the need for expenditure cuts), followed by individual meetings with legislators, a tour of Legislative Hall, and watching the House and Senate conduct their respective business during session.

There was much thoughtful discussion surrounding issues facing the business community, including the impacts of legalizing recreational marijuana, apprenticeship requirements on state procurements, budget issues and modernizing the Coastal Zone Act.

Also this week, the first revenue package to address Delaware's $382 million budget shortfall passed the House. HB 175 would raise $116 million from increases to the corporate franchise tax, and other associated fees. Bills related to apprenticeship mandates and escheat were tabled in committee, to be worked after the upcoming two-week Joint Finance Committee break.

by Chip Rossi
DSCC Chairman of the Board

The Delaware State Chamber of Commerce Board of Governors met with the candidates for the special election in Senate District 10. Both candidates shared their thoughts on how to turn Delaware’s economy around and improve education. Each acknowledged that Delaware’s economy and budget should be the primary focus of the Delaware General Assembly and the Governor – and need to be addressed.

After the presentations, the Chamber’s Board of Directors discussed if the Chamber should endorse a candidate. Both candidates presented well and focused their remarks on many of the things the Chamber advocates for every day, including the growth of small business, infrastructure, good jobs and safe, healthy communities throughout the state of Delaware.

Our focus quickly shifted from the candidates themselves to what this election means long-term for Delaware.
The spirited discussion that followed highlighted the importance of a change election if Delaware is to improve its political and economic standing. We find ourselves, year after year, facing budget deficits that underscore a fundamentally broken system and legislative remedies that are too often short-sighted. Given the urgency of the moment, the questions raised by the Board included:

• What facilitates the most change for Delaware when the status quo is unacceptable?
• Is one-party control of the executive and legislative branches conducive to resolving the difficult issues facing our state? If so, how can those in power be held more accountable?
• How best are the issues surrounding a projected $350 million budget shortfall solved so that our revenue and spending structure are sustainable long term?
• How do we capitalize on reestablishing Delaware as a manufacturing hub by retooling currently abandoned manufacturing sites for job and economic growth?
• How do we best address unsustainable increases in healthcare costs for both the private and public sectors?
• In what ways is the environment surrounding job creation being fostered?
• How best does Delaware copy and expand upon Middletown’s economic development success to bring jobs and growth statewide?​

For all the reasons stated above, this district election has statewide impacts. The answers to these questions, and others, are critical if Delaware is going to succeed as a place where businesses want to relocate or expand, where families want to raise their children, and where those children don’t have to leave our state to find gainful employment.

On February 25th, the voters in the 10th Senate District have an opportunity to consider these questions and determine the path forward.
Read coverage of this piece in The News Journal here.

It's common knowledge that Delaware likes it's food - one of the reasons we love our Taste of Delaware event at the Capitol each year. It's also why culinary arts programs are popular tracks for students to follow, and why you can bet these students are serving up delicious meals.

When you are deciding where to go for lunch, or who to cater your board meeting, Wilmington certainly offers a wide variety of options. We highly recommend adding Delcastle Technical High School to that list.

Delcastle Technical High School has been a Taste of Delaware participant for several years now. Taste of Delaware caters to more than 600 attendees, featuring over 20 Delaware food and drink vendors. Sophomores and juniors in the culinary arts program, and who are part of the school's Cooks and Bakers Club, join us and Senator Coons' staff before the event begins to help set up the area and help vendors with their equipment and food. During the event, they man registration and run errands and items for our vendors in order to keep things running smoothly. We appreciate the extra hands on deck, and they get a first hand look at a culinary event of large proportion, from beginning to end.

This week, some of our staff visited the instructional staff and students of the culinary arts program at Delcastle for lunch at Binders Cafe. We were blown away!

This week's menu boasted chicken stir fry made to order, cajun shrimp over greens with a citrus vinaigrette, and perch tacos with pineapple rice. Don't forget the chicken noodle and butternut squash soups, Delcastle's own homemade potato chips, or the grab-and-go selections of pre-made wraps and sandwiches. The dessert of the day was German chocolate cake, but we were too fond of their signature chocolate chip and oatmeal raisin cookies. We were seated and served by students, who learn customer service skills as well during their studies, and were treated with fresh rolls and blueberry sweet potato bread, served with cinnamon butter.

Delcastle's culinary arts program is designed to provide students with the opportunity to reach competency in major areas of food preparation. Students are expected to work in all areas of the culinary arts field, including dining room operations, cooking, bakeshop, and pastry making. They will be expected to work individually, in groups, and in a professional kitchen brigade to experience a wide range of learning experiences in keeping with industry expectations. Those who have demonstrated a mastery of the major culinary learning targets will have the opportunity to experience extended cooperative employment in their senior year. Students are able to earn college credit through Tech Prep Agreements with area and out of state colleges. Students also have the opportunity to earn ServSafe Sanitation certification (a nationally recognized certification that lasts for five years).

The Cooks and Bakers Club is a volunteer cooking troupe that serves several purposes: to introduce children to the science of cooking (Delcastle students volunteer at places like Ronald McDonald House to teach resident children), to help prepare students for state and national cooking competitions, and to further their training through community service learning projects, like baking cookies for each Delaware police officer every year, and 'living classroom' experiences, such as the Taste of Delaware.

We thank the staff and students and Binders Cafe for hosting us!
Call the school at (302) 995-8100 to inquire about Binders Cafe catering and dining.

​Delcastle Technical High School students helped vendors prep their tables and serve attendees at the 6th Annual Taste of Delaware.​

​Students assisted with event setup by unloading vendor equipment from the docking area.

Delcastle Technical High School students in the Capitol Building.

DSCC staff with sophomore chefs-in-training, who were able to join us for dessert this week at Binders Cafe.

by Mark DiMaio

The 9th Annual Vision Coalition Conference took place on Monday, November 14th at the University of Delaware’s John Clayton Center.  The conference brings together school leaders, educators, elected officials, non-profits and business leaders to focus on improving Delaware’s education system. This year’s meeting theme centered on working to “close the achievement gap” for the state’s disadvantaged and special needs children.

Keynote Speaker, Paul Reville, a Harvard University professor, focused his remarks on addressing persistent achievement gaps especially for students who face hurdles to learning. Professor Reville theme of “all means all” asked stakeholders to focus on policies that ensure that every student can access a quality education.
During the conference, attendees participated in small-group discussions on how Delaware can to a better job of connecting schools to government agencies and nonprofits that provide services linking students and families to health care, language training, shelter and food.  Many Delaware teachers are left to assist their student personal issues while still trying to teach. Other discussions concentrated on the state’s decades-old school funding system and the need for increased funding for schools serving students in poverty and English-language learners. There was also the realization that continued tight state budgets with a projected revenue shortfall could limit state funding to address additional student needs.

Dr. Dan Rich, University of Delaware Professor of Public Policy, was awarded the Order of the First State by Governor Jack Markell.  Professor Rich received the award for his tireless work to improve education for all Delaware students and service to his fellow Delawareans.

by James DeChene

The impact of the 2016 Election Day results will continue to resonate for the remainder of the year. Above and beyond the obvious implications of Republican Executive and Legislative branches federally, here at home, Delaware has a Senate where a special election in early spring 2017 will dictate which party has control for the remainder of the 149th General Assembly.

The pressing issues, however, remain. A major budget gap expected to be somewhere north of $300 million. An education system in need of reform in order to adequately prepare students for a career. A number of abandoned industrial sites currently sitting vacant, with limited prospects of seeing repurpose into economic development. An aging infrastructure system lacking dedicated funding to maintain, let alone expand, including road, rail, and clean water.

The good news is that I believe that our elected officials in Dover have the ability to make the difficult decisions necessary to help set Delaware on a course of growth. If we take nothing else from this election season, I believe that citizens expect to be engaged by their elected officials to outline the important issues and challenges we face. By doing so, our elected officials will find they are given a large measure of leeway to act in the interests of their constituents by making what are admittedly tough choices. Examples can be seen in Wisconsin, Michigan, West Virginia and other states where sitting by no longer remained an option for their respective legislatures.

The problems Delaware face are no different than our surrounding states, or many across the country. It is our size and ability to work together to tackle big problems that set us apart.  It is my sincere hope that the next General Assembly and Governor work together, and by doing so continue to be an example to other states.