- Gov. Jack Markell (D) signs 2012 budget and other state money bills into law
As the hours ticked away on the first year of the General Assembly’s current legislative session, Delaware lawmakers spent June 30 and the early hours of July 1 finalizing necessary spending bills and legislative redistricting.
Prior to the final meeting day, the $3.508-billion operating budget had already been approved by both the House and Senate.
The Bond Bill faced action in both chambers. Senate action followed extensive discussion on an attempted amendment by Senator Michael Katz (D-Wilmington) that questioned funding for the Delaware Health Information Network, an online system of medical sharing used by the state’s network of hospitals and health providers.
Katz cast the lone vote against the bond bill, which totals $663.9-million and provides funds for capital projects, transportation and debt reduction.
The House passed the Bond Bill after midnight in special session and only after House Minority Leader Gregory Lavelle (R-Sharpley) objected to the $55 million dollars allocated to the New Jobs Infrastructure with what he called “no oversight outside the executive branch.”
“It’s good to be Governor,” said Lavelle on the Senate floor.
Reaction from House lawmakers on final night of 2011 legislative session.
State Rep. Dennis E. Williams (D-Talleyville) wishes more had been done on job creation – including his casino expansion bill.
State Rep. Dennis E. Williams (D-Talleyville) worries about decision to lower some taxes with additional state revenue.
State Rep. Gerald Hocker (R-Ocean View), House Minority Whip, discusses what he feels was left undone during the 2011 legislative session.
House Majority Leader Peter Schwartzkopf (D-Rehoboth Beach) tried to proceed with caution in the budget process in 2011.
The $41.2-million grant-in-aid bill also generated discussion before Senate passage.
“These are certainly worthy projects here, but do we really think this is fiscally responsible?” asked Senator Colin Bonini (R-Dover).
“Yes,” answered Senator Harris McDowell (D), who explained that grants in aid had been cut significantly in recent years before this year’s increase.
Also approved were parts of Governor Markell’s economic development plans, including reductions in the personal income tax for the top bracket and the bank franchise tax, along with a cut in the utility taxes paid by businesses.
“This reduction will keep Delaware competitive with other states, “McDowell said of the income tax reduction.
June 30th marks the midpoint of the 146th Delaware General Assembly, and bills that did not pass both houses this year still have an opportunity to move forward next year.
The sponsor of the most recent legislation attempting to create two additional casinos in Delaware said moving that forward with the bill could have addressed Governor Markell’s top priority: jobs. However, his bill and two similar bills that would have expanded casino gambling failed to make it out of a House committee.
“We’ll be back in January,” Representative Dennis E. Williams (D- Wilmington) said. “We have made some progress on creating some jobs. I wish we could have done a little bit more.”
The previous casino expansion bills were sponsored by House Minority Leader Pete Schwartzkopf (D-Rehoboth Beach) and like Rep. Williams’ bill would have set up a mechanism for approving a new casino in New Castle County and one in Sussex County.
“This was the first bill we had in front of us [this year] that we had an opportunity to create jobs,” Schwartzkopf said. “And when we had the opportunity to do it we had six people [in the House Gaming & Parimutuels Committee] that said no and blocked it [from reaching the House floor].”
The state’s overall financial health is also a concern, despite several months of encouraging revenue projections that followed dire predictions at the start of the year.
“Anytime a budget grows by six-and-a-half percent, that’s not a good thing,” Senate Minority Leader Gary Simpson (R-Milford) said. He added that the state nonetheless did not need to touch its “rainy day fund,” and stayed with spending 98-percent of its available revenues. Also, Simpson said when revenue projections started to improve in the spring and more revenue became available, the state was obligated to address certain areas that were cut during several years of austerity, such as reversing a two-percent reduction in the salaries of state workers.
Still, Simpson said the state needs to proceed very cautiously.
“I hope we don’t come back next year and raise the budget again another five-to-eight percent,” Simpson said. “That would be a wrong thing.”
Reaction from Senate lawmakers on final night of 2011 legislative session.
Senate Minority Leader Gary Simpson (R-Milford) is not entirely comfortable with the growth of the state budget.
Senate Minority Leader Gary Simpson (R-Milford) feels the 2011 session was a relatively peaceful session.
Senate Minority Leader Gary Simpson (R-Milford) hopes the General Assembly will eventually work to hand over redistricting to an independent commission.
Senate Majority Leader Patricia Blevins (D-Elsmere) feels the General Assembly took a measured approach in developing the 2012 budget.
Senate Majority Leader Patricia Blevins (D-Elsmere) believes efforts to create jobs have been substantial this year.
“There’s so much pressure to put money back into some of these (state) programs,” Schwartzkopf said. “We resisted a lot of that. I think we’ve been pretty responsible in crafting a bond bill, a budget, and grant-in-aid package.”
“Even though I am all in favor of lower tax rates, I think the stability is equally important,” Williams added. Rather than face the possibility of having to raise tax rates again in the future, Williams suggested to utilize extra revenue, if there is enough, to provide a one-time tax rebate.
“We could have done a little bit more with some of that money, pay down the debt a little bit more too,” Williams said. “I know we put some money into that, but not as much as I would have liked.”
In the area of job creation, House Minority Whip Gerald Hocker (R-Ocean View) said he was disappointed.
“I don’t see where we’ve done a lot to get private sector jobs,” Hocker said. He maintained that job creation efforts have come at the expense of taxpayers, or in the case of Bloom Energy at a cost to Delmarva Power ratepayers. Also, Hocker said more needs to happen to encourage small business start-ups and small business growth.
As for responsible spending, Hocker says the administration has also fallen short.
“The Governor originally recommended budget growth of a little over three-percent, and we increase it almost twice that, then no, we haven’t done our jobs,” Hocker said.
Plans to redraw Delaware legislative districts to reflect the 2010 US Census passed in the Senate, 15-6. The final bill combined House and Senate maps. Lawmakers held public hearings and accepted comments by mail and online during the spring. The Census measured more population growth in southern Delaware. As a result, New Castle County loses some representation. The plans were criticized by some who saw the new maps as politically motivated. There were also concerns the newly drawn districts watered down minority influence in Wilmington-area Senate districts.
The Senate gave final approval to legislation that would enhance the penalties for DUI offenses, specifically targeting those who have been caught driving under the influence multiple times. The measure, supported by Attorney General Beau Biden and the Delaware Association of Chiefs of Police, would mandate ignition interlock devices for a driver with a blood alcohol level of .15-percent, or who refuses to comply with an officer’s order to undergo a breathalyzer test when pulled over. Individuals convicted of a third DUI offense would be required to wear an ankle monitoring device that detects any use of alcohol in a defendant.
