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Sunday, 22 September 2013

Delaware's Economy Scrutinized

Posted on 12:09 by Unknown



(News Journal, Doug Denison image)
I guess I won't have to go to hear Markell's economic stump speech at DelCastle High School since I heard it Wednesday night during a community leadership meeting hosted by Rep. Valerie Longhurst at the Buena Vista conference center. He and Matt Denn spoke so long, they pushed the PBF Refinery presentation right off of the agenda.

The Governor is touting new jobs promised and jobs possibly in the pipeline. But, while Markell and the Democrats refuse to touch their sacred cows - protecting taxes, tax credits and prevailing wages - they appear  completely willing and eager to cut corners on environmental protections.  As Kavips comments here:
The only criticism I could offer is that you give too much credit to the News Journal having control over anything taking place inside their four walls. They are all over the place on Jack Markell. They support him destroying the Coastal Zone Act, (Yay, Destroy Environmental Regulations!), they support him destroying the public educational system, (Yay, Destroy Public Education!) they support his dispensation of future tax credits for the flimsey corporate promise of creating jobs (Yay, Destroy Delaware’s Financial Security!)
Remember who was up all night at Legislative Hall on the last night of session based on rumors that Markell was going to float a bill to gut the Coastal Zone Act ~ Whose Were Those Watchful Eyes At Leg Hall #DEJune30? And how about DNREC's circumvention of the Coastal Zone Act for the refinery, their faked NOT-incinerator that will burn plastics and tires in the City of New Castle or the welcoming of a power plant in the middle of Newark?  

Meanwhile, the Delaware State Senate Republicans sent this along ~
Lawson Not Impressed With Jobs 'Conversation'

DOVER - Sen. Dave Lawson (R-Marydel) called the governor's performance this week
during the first of three scheduled "Town Hall Meetings" to address economic issues
in Delaware "an act of desperation."
The first forum, titled "Conversations with the Governor - Moving Delaware Forward,"
was held Tuesday night in a packed room at Delaware Technical and Community College
in Dover. The governor spoke for more than 30 minutes before fielding any questions
from the audience.
"He was so much about defending, that he forgot it was a 'conversation,' said Sen.
Lawson, who attended the event. "When there is so much evidence out there and so
many reports putting Delaware in less than a good light, I would suggest to the
governor it's time to take a good hard look in the mirror."
In recent weeks there have been a number of reports coming from independent sources
from in and out of the state painting a grim picture of Delaware's economic health.
Earlier this week the Delaware Economic and Financial Advisory Council lowered the
state's revenue projections through fiscal year 2015. The panel now projects deficits
for the current and FY 2015 state budgets.
Last week the economic forecasting firm Moody's Analytics announced that Delaware
is the only state in the nation at risk of slipping into an economic recession.
And according to figures released Thursday by the Delaware Department of Labor,
there are fewer people working in the state today than when the governor took office
in 2009.
The first audience member to ask a question Tuesday night was a Delaware Army National
Guardsman who has been out of work for a year.
"We still don't have enough jobs," Sen. Lawson said. "What are we doing? The person
sitting next to me Tuesday night was a Democrat and Markell supporter who told me:
'He didn't answer one question tonight.'"
Sen. Lawson said he would like to see much more of an effort from the governor and
other Democrats for a bi-partisan discussion on economic growth and to listen to
ideas that have been ignored in recent legislative sessions.
"I've been in the General Assembly for three years and not one time has the governor
approached the Senate as a body and asked us to help find solutions to the problems
that Delaware is facing," he said. "Not one time. To me that's not leadership."
The second town hall meeting is scheduled for Thursday, Oct. 3, 6:30 p.m., at the
Cape Henlopen High School Auditorium in Lewes. A third forum is slated for Thursday,
Oct. 10, 6 p.m., at the Delcastle High School Auditorium in Wilmington.


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

OPINION
.
Markell's Economic Plan Doesn't Measure Up


 By Sen. Greg Lavelle
.
Labor Day has passed and the summer of 2013 is an  approaching memory. Back to
school; back to work; back to reality. The next reality check for Delaware's government
and the strength of our economy will be Sept. 16 when DEFAC's financial forecast
report is released.
This report is the barometer on Delaware's economic progress.  While we may agree
or disagree on approaches, policies and other matters, we all agree that we would
like our economy to do better. Simply put, Delaware's economic growth has lagged
the nation by any number of measures.
Two economic measures that are easily understood are the state's growth rate, which
was an anemic 0.2 percent in 2012 vs. 2.5 percent nationally; and per capita income
growth, which ranked 47th in the nation. Supporting this data, or perhaps creating
this data, is a job market that is weak and struggling. In August, Delaware reached
the national unemployment rate of 7.4 percent, ending its long history of having
an unemployment rate lower than the national average. Minority and youth unemployment
are at least twice the national average.
The demands for state tax dollars in the coming budget year are too numerous to
list but include pay raises for state employees, infrastructure needs, school funding,
and reimbursement rates to the many non-profits that provide services to some of
our most fragile neighbors. Of course, and not surprisingly, there are also Delaware
citizens who would like to have business, income and other taxes or fees lowered.
We all care about these issues and the need to address them fairly is the challenge.
A vast majority of economists would agree the fairest way to fund these needs is
through economic growth. While funding government through an endless loop of tax
and fee increases may smooth over demands in the short-run, it only increases them
in the long-run. Growth begets growth and opportunity; unfortunately, the reverse
is also true.
Recently there were editorial debates in this paper by Gov. Markell and Rep. Danny
Short regarding job creation and our economy in general. Rep. Short questioned the
governor's strategy, and the governor pointed to jobs created or saved by the use
of Delaware's taxpayer funded Strategic Fund. The governor suggested that Rep. Short
didn't think these were important jobs. I know Rep. Short and he, like the governor,
wants to see every Delawarean who can and wants to work doing so.
I believe Rep. Short's point was the governor's strategy is simply not creating
the strong job environment we need. In addition, the Strategic Fund can't be the
biggest tool in the box in the long run given competing needs and the fact that
there's simply not enough money to buy every job.  Rather than literally being
able to point to each job "created" by government with the use of tax dollars, wouldn't
a return to the old normal of systemic job growth be the ultimate goal we all agree
on and strive for?
So, once again, policy challenges are before us as we work for a future that is
strong with opportunity and economic growth for all.
Education reform is important and ongoing. The funds associated with Race To The
Top run out next year, and replacing them will put pressure on state and school
budgets. Many question, as I do, the ever-increasing role of the federal government
in education and wonder why this meaningful effort can't be better directed by the
thousands of dedicated educational professionals here in Delaware.
Another initiative, regulatory reform, was initially legislation sponsored by myself
and other legislators to force regular reviews of state regulations. While the governor's
response to initiate a review by Executive Order was welcomed, it should not be
a one-off exercise and then put away.
The lessons of creating and then raiding special funds, like the Transportation
Trust Fund, can't be forgotten. Just recently, there were two instances of the Infrastructure
Fund rules being bent to fund initiatives that would otherwise not have met the
intent of the fund. I point this out given the governor's thoughts in late June
regarding infrastructure funding which included increased taxes and fees and promises
of where the money would be spent.  Fool me twice . . . shame on me.
While we might have honest disagreements on approaches, there is a growing agreement
that the last legislative session did not focus nearly enough on our creating an
environment where the private sector can thrive.
The national unemployment numbers were released this past Friday. Like so many economic
reports from the last year or more, the Good News/Bad News elements of this report
essentially cancel themselves out and show an economy that continues to struggle
to find a solid foundation.
We can all agree that a strong DEFAC report on Sept. 16 will be good news for all
Delawareans.  While my fingers are crossed, my eyes are open.

Editor's Note: This is the unedited version of Sen. Greg Lavelle's editorial that
appeared in the News Journal Sept. 12, four days before the latest DEFAC meeting.forecast of another budget shortfall.~ Panel lowers state revenue estimates: "While officials insist that Delaware’s economy is strengthening, a state economic forecasting panel reduced two-year revenue estimates by $25 million Monday from earlier projections in June, partly as a result of lagging casino revenue and slower corporate income tax collections."
~*~
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