Home » Commentary » Delaware’s General Assembly: Post session analysis
  • Article
Delaware’s General Assembly: Post session analysis

A week ago, the 146th Delaware General Assembly completed its business for 2011. An unexpected surplus in revenue made constructing a 2012 budget less complicated. The budget bill and other “money bills” were ready early and approved with little debate or difficulty. The once-a-decade task of redrawing district lines for both chambers also went forward with little controversy. So, was the 2011 legislative session an unqualified success – or did some issues slip through the cracks?

DFM News asked a trio of political observers to assess what legislators did and did not accomplish – and what we may see come January as the 2012 session and an election year get underway. Their thoughts, submitted via email, are here:


Delawares General Assembly: Post session analysis
Paul Baumbach
Delawares General Assembly: Post session analysis
Charlie Copeland
Delawares General Assembly: Post session analysis
Prof. Sam Hoff
The process of assembling the budget and other money bills (Grant-in-Aid and the Bond Bill) was assisted by the appearance of additional revenue this spring. How do you rate the final product produced by the Governor and General Assembly? Do you think the additional funds were used wisely?

“The final product was good, but could have been even better. The depth of the recent financial crisis forced our state government to not only make the kind of cuts that are made in normal downturns, but to also make ‘extraordinary cuts,’ cuts to basic services for those most in need, cuts that no one wanted to make, but which we were assured ‘needed to have been made.’ When our state economy’s recovery had begun, these cuts should have been fully restored before anything else was restored. This is an issue of priorities, and this year I did not see these priorities set as well as they could have.”

—Paul Baumbach, President, Progressive Democrats for Delaware

“Appearance of additional revenue” is an apt description. Either directly or indirectly, almost 50% of Delaware’s State revenues come from outside of the State sources, primarily through corporate fees & taxes, gambling revenues, escheat funds, etc. The State’s internal economy is in a shambles. Local businesses are closing, cutting staff, or retrenching. Since Jack Markell became Governor, non-farm employment in Delaware has shrunk by almost 6% — from 437,100 in January 2008 to 412,200 in May. Despite the Governor’s raising of taxes on small business, increasing general government spending, and handing out tens of millions on corporate welfare to a handful of well-connected, powerful, global corporations, Delaware’s internally generated revenues are moribund.

The “appearance” of the outside money (US global corporations have had record profits and are holding record amounts of cash) allowed our State’s government to increase operating spending by over 6% for next year. The two questions are: will this additional spending 1) be repeatable (Is there another economic downturn on the horizon?) or 2) help the economic environment in Delaware so that there is local business growth and local employment growth. The answer to the former is “probably not”, and the answer to the latter is “definitely not.”

—Charlie Copeland, former state senator and 2008 GOP candidate for Lt. Governor

“Having $300 million in extra revenue helped the budget process leading up to FY 2012. In addition to a plethora of one time, job-enhancing projects, a third of revenue went to two areas, the DelDOT Transportation Trust Fund ($40 million) and the newly created Jobs Infrastructure Fund ($55 million).

While ostensibly a commitment to right the ship at the DelDOT, the $40 million is wholly insufficient to deal with the five-year, $1 billion-plus deficit in the latter fund. The stated reason for not addressing this problem in a more dramatic way was that DelDOT leadership must recover the confidence of the government and the people before more resources are expended.

The Jobs Infrastructure Fund is a continuation of Governor Markell’s 2010 effort to reserve some FY 2011 funds for luring businesses to Delaware. While the administration has shown its acumen in this area, there has been some criticism by members of the General Assembly that the aforementioned trust fund is entirely controlled by the executive branch, with no legislative oversight. With an 8 percent unemployment rate still slowing economic recovery, this fund will be closely scrutinized in any case.

Conservatives in the General Assembly disagreed with the 6 percent growth in spending for the FY 2012 budget, while liberals railed against the cuts in retirement and medical benefits for future state employees.”

—Sam Hoff, Delaware State University political science professor

The budget process received almost universal praise from legislators because the budget was ready for review early and the process was more transparent. Is this in part a product of recent efforts to push for more open government? If so, does this make the case for pursuing other open government initiatives? Are there still ways to improve the budget drafting process?

“The open government push directly led to the recent budget process improvement, and this is why open government groups such as the Progressive Democrats for Delaware (PDD) and other advocates worked so passionately for open government over the years. There is more to be done for open government, most clearly the redistricting process, where progress yields substantial benefits.

“There are definitely ways to further improve the budget process, to make it more accessible to citizens. This requires coordinated work of the governor, the legislature, the media, and perhaps others. Budgeting isn’t rocket science—it is all about trade-offs: I want this more than that, for this I am willing to pay that. For instance, in April we could have public meetings where these tradeoffs are examined. At one meeting attendees could examine what to do if there is additional money to spend—restore past cuts for the poor, reduce taxes for high-bracket taxpayers, pay down debt, build reserves for road projects, build reserves for environmental protection, etc. Another meeting could examine tradeoffs on the revenue side—how we compare with neighboring states, if we need more revenue, should we inch up personal rates or corporate rates, should we increase them across the board, or more at the top end, should we increase taxes or fees or both? The point is that these meetings would not be ‘agenda driven,’ other than including the public in the annual state government budgetary process.”

—Paul Baumbach, President, Progressive Democrats for Delaware

“Kudos for preparing the budget early. Of course, the defeat of a key budget writing legislator from the General Assembly after a 34 year career was probably the most important influence on having the budget done early. So the real hero is rookie State Senator Dave Lawson. Of course, having excess money “appear” also made producing a budget easier — everybody got something.

The best way to improve the budget drafting process is to elect some fiscal conservatives who would help keep state spending to a sustainable level (remember that it was just over 2 years ago the State faced an $800 million deficit on a $3.2 billion budget). As Senator Colin Bonini recently pointed out, “We are raising overall spending by 8%, even though our economy is growing slower than any other in the region. Eventually, something will give.”

—Charlie Copeland, former state senator and 2008 GOP candidate for Lt. Governor

“The open government provisions passed during the previous session of the General Assembly had a positive impact on the manner by which the budget was finalized during the last few months. However, it also helped that the governor and both chambers of the legislature are controlled by the same political party.

To retain a AAA bond rating, Delaware should make necessary improvements to the budget drafting process. This could include more frequent DEFAC meetings after January 1, improving the evaluation of presently funded programs, and ensuring bipartisan inclusion in the decisions over revenue and expenditures.”

—Sam Hoff, Delaware State University political science professor

What new legislation coming out of the 2011 session do you think is most significant? What will have the most impact?

“The Civil Union bill was the most visible, however there were other notable bills passed by the legislature this year—the medical marijuana act, the Ned Carpenter drug law act, foreclosure reform, and three gun control bills. The legislature correctly refused to dismantle the RGGI greenhouse gas initiative program. Individually these are solid steps forward, but taken together they indicate that our state legislature has turned a corner, a very significant corner. Our state legislature is, at times, willing to take courageous stands for just causes, to move our state forward, rather than permitting fear-mongering to rule Dover.

Our legislature is wising up and living up to their duty to improve society, by rejecting the fear that progress’ opponents spread. When we pushed for open government, the opponents claimed that this would shut down government. What happened? Only good. When we pushed to make it illegal to discriminate against GLBT individuals, opponents said that our society would break down. What happened? Only good. There is strength in numbers, and with more successful laws passed, and with more courageous legislators, it is easier to pass good legislation in the future.”

—Paul Baumbach, President, Progressive Democrats for Delaware

“Delaware is a destination State for many things. In addition to our beaches, tax free shopping, and slot machines, Delaware is a destination state for abortions. 46% of the abortions performed in Delaware are for women from other States. In the most recent legislative session, Delaware has added “getting stoned” to the list of reasons to come to Delaware. The Medical Marijuana bill, which will probably help some number of legitimately ill citizens, does not require that a “qualifying patient” be a Delaware resident. So, we have made Delaware, by law, a destination state for the use and likely abuse of marijuana.”

—Charlie Copeland, former state senator and 2008 GOP candidate for Lt. Governor

“The legislation enacted by the General Assembly in the just-completed fiscal year included landmark laws dealing with civil unions and medicinal marijuana as well as important provisions affecting the administration of charter schools in the state. Although civil unions are commendatory, they may eventually be replaced with full same-sex marriage rights once the Defense of Marriage Act is declared unconstitutional at the federal level. Passing a medicinal marijuana law is way overdue and shows compassion for the sick. But the number of folks who will benefit from the pain-reducing effects of marijuana is relatively small. Therefore, I believe that the law regulating charter schools in Delaware will have the greatest short-term impact. ”

—Sam Hoff, Delaware State University political science professor

Do you note any legislative misfires? Were there any bills that succeeded that you think should not have passed, or bills that failed that you think should have passed?

“Despite some wonderful ‘wins,’ there were some disappointments. The state senate failed to pass, or even consider, the gun show loophole bill. The legislature couldn’t pass the lobbyist reform bill, but instead is kicking the can down the road. I had expected that the attention raised on ‘double dippers’ would have led the legislature to pass a meaningful law, to ensure that legislators who hold a second state job do so responsibly. I would have preferred to see the legislature pass a redistricting reform bill.”

—Paul Baumbach, President, Progressive Democrats for Delaware

“I think that growing the State’s operating budget by over 6% is a huge misfire as it was only about 2 years ago that we faced a 25% budget shortfall. The economy is still very perilous, and yet our legislators continue to party like it is 1999.

The other area that was completely missed in the legislative session was truly upgrading Delaware’s Charter School law. Legitimate Charter operators have requested for a number of years that the State tighten certain financial reporting requirements and Board membership requirements. These calls went unheeded until a crisis hit with questionable spending practices at a couple of Charter Schools. In return for these accountability improvement requests, legitimate Charter operators have asked to be allowed to open multiple schools under one approved Charter as well as the receipt of capital dollars to provide Charter school students with school facilities that are comparable with District schools. A Charter School receives operating dollars of about $10,000 per student with no capital dollars for buildings, equipment and facilities. Meanwhile a District School receives the same operating dollars, but on average, an additional $6,000 per year in capital money. In short, a District School spends about $16,000 per student on average across the State while a Charter School can only spend $10,000 per student. Despite this difference in spending, Charter Schools are achieving similar education results as District Schools — just imagine how good Charter Schools would be if they had a few dollars to spend on facilities.”

—Charlie Copeland, former state senator and 2008 GOP candidate for Lt. Governor

“The current session certainly had its share of legislative misfires.

First, though passed by the House, HB55 is stuck in the Senate. That is where it should die. Replacing the electoral college result in the state with the national popular vote is unwise and, in the manner by which it is being attempted, unconstitutional. Then there are the bills to limit legislative tenure to 12 years and to lessen salary perks for party leaders, neither of which saw the light of day and indeed shouldn’t over the second session of the 146th General Assembly.

Conversely, there were bills passed that should not have been. For one, Delaware continues to ignore common sense and safety by not requiring motorcycle riders to wear a helmet. A new law eliminates the requirement that riders must have a helmet in their possession while riding. Second, though the redistricting process was apparently completed, the rush-rush procedure, lack of input from Republicans, and threats of a lawsuit by the NAACP have already led to second-guessing and recriminations.

Then there is the Parole Board controversy. After the Senate defeated a bill to eliminate the Board of Parole, the legislature had to find funds for its continuation, an ad hoc process at best. Later, Governor Markell announced that his office will not pay the salary of the Board’s chair. This sets up an unprecedented situation which could lend itself to legal challenges by displaced Board members.”

—Sam Hoff, Delaware State University political science professor

With a major election year on the horizon in 2012, was there anything that happened in this legislative session that you anticipate could become a campaign issue next year?

“In 2010 the Democratic Party told the voters that if in November they voted in enough Democrats to shift the house majority to Democrats, we would make sharp improvements. The voters delivered, and since then the Democrats have. The first bill that Speaker Gilligan promoted was the open government bill, which set the stage for 2011’s progress, passing good social and fiscal legislation. At this point the most likely campaign issues will be a backlash against legislators who opposed good legislation, who voted against equal rights/civil unions (or refused to vote), and perhaps against those who permitted the gun show loophole bill to wallow in the Senate Judiciary committee.

The next election follows next year’s legislative session, and so it is too early to really know the top campaign issues for 2012. There are some open good government issues, which if left unresolved, could become campaign issues. These issues include lobbyist reform, an open redistricting process, and proper oversight of legislators who hold a second state job. If, however, these issues are addressed well next year, courageously, then they can lead to 2012’s voters rewarding the legislators who lead these efforts.”

—Paul Baumbach, President, Progressive Democrats for Delaware

“As James Carville famously put it in 1992, “It’s the economy, stupid.” Our State government & legislators did nothing to make Delaware an easier place for small businesses to grow and thrive. Delaware’s regulatory regime, energy prices, and frozen infrastructure remain a huge economic impediment to expansion.

If the economy experiences another downturn, the State’s wasteful spending will become a significant issue as well as the decade long failure of our government to streamline our Medicaid system, which within the next few years will be the State’s largest single expenditure. Making budget cuts and raising taxes in an election year is not good politics.”

—Charlie Copeland, former state senator and 2008 GOP candidate for Lt. Governor

“Among the present areas of concern are three issues, any of which could become a major campaign issue in 2012. The first is the investigation into allegations of possible state campaign finance fraud, emanating from the arrest of prominent liquor distributor and political donor Christopher Tigani. With the appointment of former Delaware Supreme Court Chief Justice E. Norman Veasey to lead the inquiry, things may heat up quickly in the new year.

The second potential campaign issue is the question about whether there is a need and a market for additional casinos in Delaware. After backing proposals for expansion since his election, Governor Markell recently stated that he is satisfied with the present three facilities. However, if revenue dips to 2009 levels, you can bet that this issue will be revisited in a hurry.

The third likely campaign issue is Governor Markell’s plan to reform Medicaid, which furnishes health care to the poor. After getting the legislature to reform pension and health care for new state employees, perhaps this was too much to ask all at once. But others argue that this program should be retained without cuts and that it is unfair to target the vulnerable in society. Attempting to enact this reform in an upcoming election year is risky at best.”

—Sam Hoff, Delaware State University political science professor