DELAWARE BUSINESS | Januar y /Februar y 2013 11

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2012 Legislative Wrap-upBY RICH HEFFRON

IN THE SPRING, the Delaware Economic and Financial

Advisory Council projected just a small budgetary increase in

2012, prompting the General Assembly to pass a $3.9 billion

Fiscal Year 2013 operating budget. The problem that they now

face is a revenue drop of about $60 million in FY 14 and another

$100 million in FY 15. With caution in mind, this legislative year

actually turned out to be a rather routine session.

This year the General Assembly fulfilled last year’s promise

to end its traditional last-minute budget battle by having the

spending bills available for review several days before the June

30 deadline. Once again the Joint Finance and Bond committees

made their decisions in open session, establishing a new tradition.

Several legislators commented that these open sessions actually

made the process much less tiresome and more enjoyable.

Now, the public can truly understand how tedious the process

of allocating the state’s money can be. As is usually the case, the

administration was successful generating support for most of its

key proposals. Investment in economic development continues to

be a major factor in budgeting dollars, as is education, and infra-

structure financing.

Beginning with the final terms of now-retired Speaker of the

House Bob Gilligan and Senate President Pro Tempore Tony

Deluca, most of the controversial legislation was addressed early

in the session, thus avoiding of the late session contention of

earlier years. All these factors contributed to a generally quiet

legislative session for the business community.

Taxes & Spending Legislators fear for a potential revenue loss down the line, so

very little was done with tax or fee bills this session. The General

Assembly did adopt (and Governor Jack Markell signed) HB 251

(Longhurst D–Dist. 15) that eliminated the $100,000 license

fee paid by firms engaging in oil lightering operations in the

Delaware Bay.

The abandoned property statute was amended under SB 258

(DeLuca D-11th Dist). This creates an additional incentive for

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Januar y /Februar y 2013 | DELAWARE BUSINESS 12

holders of abandoned property to report such property to the

state and promptly resolve claims in a process that would limit

the reporting of abandoned property to 1996 or 1993, rather

than the current obligation of holders to report abandoned prop-

erty back to 1981.

EducationLast year the General Assembly passed (and Gov. Markell

signed) SB 16 (Sokola D-8th Dist), allowing school districts to

base hiring and spending decisions on an estimated unit count

each March, rather than the previously required September date.

There was a sunset attached to this bill, and this session Senator

David Sokola sponsored and the governor signed SB 164, which

eliminates this provision. Retiring Rep. Terri Schooley (D -23rd

Dist.) sponsored HB 239/HA1 which repeals the April 2012

sunset provision attached to the statute authorizing it as a route

to teacher licensure and certification.

Negotiations related to an update of the charter school statute

continued without a final agreement. This year, the Delaware

State Chamber of Commerce will continue to express its support

for comprehensive revision of the state’s charter school law.

Economic DevelopmentWith Bloom Energy breaking ground for its east coast plant

at the former Chrysler site in Newark, Amazon constructing a

facility in Middletown, and various other projects such as the

rejuvenation of the Delaware City Refinery and Calpine’s plan to

build a natural gas-fueled generating plant in Dover, the Delaware

Economic Development Office’s efforts continue to provide

opportunities. The General Assembly approved $30 million for

the Strategic Fund and an additional $6 million for specific proj-

ects in the Bond Bill to fuel further job creation efforts.

LaborWhen the updated workers’ compensation statute was made law

six years ago, the General Assembly promised to make improve-

ments to Delaware’s workers’ compensation system. They have. In

order to facilitate and hospital and surgery center compliance held

within the workers’ compensation statute, the General Assembly

passed SB 238 (Deluca D-11th Dist). This bill establishes a

formula for calculating payment schedules that add clarity and

equity to the process.

Land UseIn order to allow counties a more reasonable timeframe to estab-

lish their comprehensive plans, SB 138 (Venables D- 21st Dist.)

was passed and signed to bump the maximum time between

updates from five year to 10 years. This legislation does not

prohibit counties from doing more frequent updates if they wish.

The end of the session saw some familiar faces leave Legislative

Hall for the final time as elected officials. Rep. Gilligan retired

after 40 years of service, the last four as Speaker of the House.

Senate President Pro Tempore Tony DeLuca will not return after

14 years, eight in leadership. Others leaving after years of service

include: Sen. Dori Connor, Sen. Liane Sorenson, Rep. Biff Lee,

Rep. Nick Manolakos, Rep. Brad Bennett, Rep. Terri Schooley,

and Rep. Dennis P. Williams. Sen. Michael Katz and Rep. Lincoln

Willis will not return after serving one term each. We appreciate

the time all of these General Assembly members dedicated to the

citizens of Delaware.

TOTAL STATE SPENDING

FY ‘12 Allocation

Bond Bill $429,271 million1

Grants-in-Aid $41.2 million

Operating Budget $3.9 Billion2

Transportation Trust Fund $173,271 million

TOTAL $ 4.4 Billion

(1.) Includes the Transportation Trust Fund, and (2.) federal pass-

through funds

Final ThoughtsLegislation is a product of a desire to make the state a better

place for all of its citizens, and compromise between those who

might have a different idea of what defines better. This past

session was a successful one for the Delaware business community

and the residents of the state. The upcoming session will present

more opportunities and challenges as we face an economic growth

pattern that is not as robust as was expected to be last spring. �

T OT AL S T AT E S P E NDING

B ond B ill5%

Twenty-F irs t C entury F und

0%

Trans portation Trus t F und

2%

G rants -in-Aid1%

Operating B udget

92%

2012 Legislative Wrap-up

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