The legislative session in Dover came to end on June 30, 2008. Here are the highlights of what took place over the past 6 months:
State Capital Budget Approved: The Delaware General Assembly approved a state capital budget of $600 million on June 30, 2008. It is broken down as follows: Office of Management and Budget - $129,000,000; Delaware Economic Development Office - $18,000,000; Delaware State Housing Authority - $5,000,000: State - $10,000,000; Health and Social Services - $2,750,000; Correction - $3,135,000; DNREC - $9,255,000; Safety and Homeland Security - $2,790,000; Transportation - $268,500,000; State Fire Prevention - $105,000; University of Delaware - $5,000,000; Delaware State - $5,000,000; Delaware Tech - $5,000,000; Education - $132,785,000 and Twenty First Century fund - $3,650,000. For a full copy of the state’s bond, please e-mail ecapodanno@abcdelaware.com
Wind Power Approved: Legislation to allow an offshore wind farm breezed through the Delaware legislature and was signed into law by the governor. Delmarva Power and Blue Water Wind announced an agreement prior to the legislation being passed. The initial plan calls for about 60 large wind turbines about 11 miles east of Rehoboth Beach. Blue Water Wind could begin delivering energy to Delaware customers by 2012. The bill approves a 25-year power-purchase agreement to allow Delmarva Power to buy up to 200 megawatts of electricity. The deal allows Blue Water to sell leftover energy credits on the open market, making the project economically feasible for the wind farm developer while saving Delmarva Power customers an estimated $100 million. It also requires that the costs associated with wind-based electricity be spread through a surcharge across Delmarva Power’s entire Delaware customer base, not just among its standard residential customers.
Taxes to Balance State Budget Fail: Tax increases meant to help close the $217 million gap in the State’s 2009 budget got mixed results. The proposed 50% increase in the state alcohol tax failed to receive enough votes to pass the Senate. The lawmakers proposed 2.9% tax on hospital receipts failed to receive enough votes to pass the House. This left a projected $20 million gap in the State’s operating budget. The General Assembly took $20 million from the Bond Bill (Capital budget) to balance the budget. The House also passed revenue enhancers that would speed up receipts from insurance premium taxes, shorten the time before Delaware can claim dormant "escheat" accounts and allow the state to seize money from unclaimed parimutuel tickets from racetracks after one year. The General Assembly also approved increasing the gross receipts tax rate back to the rate in 2006. It contains a sunset provision that automatically repeals the tax increase on March 31, 2012.
House Labor Committee tables ABC Prevailing Wage bill: The House of Representatives Labor Committee tabled House Bill 394, ABC’s legislation that would make the prevailing wage survey mandatory by a 3-2 vote. The bill would also provide that if the rate is not determined to be the collective bargaining rate, then the rate determined by the annual survey shall be the rate for a five-year period, subject to raises tied directly into the prior year’s pay raise for state employees. Employers who fail to provide data, and who cannot show good cause, are prohibited from submitting bids on any public works projects for a period of one year, or until they submit data in a subsequent survey. With the bill being tabled and legislative session ending on June 30 for the year, ABC will reintroduce the legislation in January 2009.
Manufactured Housing bill passes: House Bill 504, a bill that granted increased rights to owners of manufactured homes that sit on property owned by another party passed the General Assembly and is awaiting the governor’s signature. The legislation gives residents of manufactured home communities the first shot at buying their communities if they come up for sale. The bill gives residents, who own their homes but rent the ground under them, the right at first offer. If the property owner decides to sell the land, the local homeowner’s association can make the first offer – and the community owner cannot sell to anyone else for that price or less. There are provisions for counteroffers that allow the community owner to accept a higher price while maintaining the right of the homeowners to meet the price.
Charter School Moratorium approved: The Delaware General Assembly approved legislation imposing a moratorium on new charter school applications. This resolution would impose a one-year moratorium on new charter school applications during the 2008-09 school year. During this time period, applications for a single gender charter school for girls may be submitted; however only one such school may be granted charter approval. Amendments to the resolution allowed exemptions for the Aspira Charter School of Delaware and the Gateway Charter School from the moratorium. The moratorium would allow the Delaware Charter Schools Network and the state teachers union to resolve differences on what changes are needed in the charter school system.