This weekly e-newsletter is being offered as a free public service by the Delaware House of Representatives (Minority Caucus)  to provide accurate and timely legislative news and information.  Members of the news media can use as little or as much of the content as they wish, with or without attribution.

NEWS:

Author, Lawmakers Share Link to State's Regrettable Past

In photo, from left: State Rep. Harvey Kenton (R-Milford); State Rep. Dave Wilson (R-Cedar Creek Hundred); Orlando Camp, author of The Milford Eleven; and State Rep. Jack Peterman (R-Milford) at the Public Archives Building holding copies of Mr. Camp's book.

"Fifty years ago, I could not have stood at this podium.  I would not have been allowed in this building," said Orlando J. Camp, who delivered the featured remarks at a recent event (2/2) at the Delaware Public Archives marking the start of African-American History Month.

Mr. Camp, the author of new book "The Milford Eleven," was one of eleven 10^th grade students that were involved in an abortive effort to desegregate Milford High School in 1954.

The attempted integration was in reaction to the unanimous U.S. Supreme Court decision handed down earlier the same year (Brown v. the Board of Education) that found racially-segregated schools to be unconstitutional.

State Reps. Harvey Kenton (R-Milford) and Jack Peterman (R-Milford) were enrolled in Milford schools the following fall.  Kenton was in 7th grade and Peterman, trailing him by a year, was in the 6th grade.  Both were also among a handful of white children whose families did not take part in a school boycott protesting the arrival of the African-American students.

Ultimately, Milford proved unready to join those schools that successfully integrated.  Under rising tensions and threats of violence, the African-American students were withdrawn from the school after attending for less than a month.  Years would pass before black students would be able to take classes at the high school.

Mr. Camp said in contrast to similar instances elsewhere in the country, the situation in Milford never captured national attention.  "Those 28 days we went to the white high school were buried here in the archives," he said, explaining his motivation for writing the book.

The Milford Eleven is published by Cedar Tree Books and can be found at: www.cedartreebooks.com.

NEWS:

"Tina Fallon" Marker Latest in Program Celebrating

State's Heritage 

In photo, from left: State Reps. Biff Lee (R-Laurel) & Dan Short (R-Seaford) and Delaware Public Archives Director Stephen Marz seconds after the upgraded marker was revealed.

Under blue skies and unseasonably warm temperatures on Friday, State Reps. Dan Short (R-Seaford) and Biff Lee (R-Laurel) took the wraps off an updated historical marker detailing the history of the Woodland Ferry.

Located just west of Seaford, the ferry has carried passengers and vehicles across the Nanticoke River since at least the 1740s.  The free passage is operated by the Delaware Department of Transportation, providing motorists traveling to and from the Laurel-area with a shortcut across the waterway.

State Rep. Short said the new version of the marker reflects that the name of the vessel currently making the crossing is "the Tina Fallon," honoring the late state representative who served the Seaford-area from 1978 to 2006.

Delaware Public Archives Director Stephen Marz

said the sign is one of 544 authorized historical markers statewide.  Sussex County boasts 222 of that total.

Rep. Short said the markers help to preserve the state's heritage, especially knowledge of local history that otherwise might be lost.

According to Delaware Public Archives Outreach Manager Thomas Summers, some of the markers will soon include a smart phone interface, giving visitors access to enhanced information and features.

The marker previously at the Woodland Ferry office site has been donated to the Seaford Historical Society.

OPINION: 

Credible Plan to Fix the Ailing Transportation Trust Fund Ignored

 By State House Minority Leader Greg Lavelle &  State House Minority Whip Gerald Hocker

The challenges facing the fund used to finance Delaware's highway and bridge projects received some attention recently.  However, ignored in the rekindled debate is a plan originally offered by House Republicans last May to deal with this troubling situation.

At the core of the problem are the demands being placed on the Transportation Trust Fund (TTF).  Financed by tolls, transportation-related taxes and fees, the TTF was established solely to pay for the capital costs of maintaining and expanding the state's transportation network.

The purity of that intent was gradually eroded to cover shortfalls in the state's operational budget.  Starting in 1993, state lawmakers began moving transportation-related operational expenses to the TTF. These expenses have grown over the years, as have the need to maintain a larger transportation system and build new projects.  Meanwhile, the TTF's revenue sources have not kept pace with the greater demands.

A task force empanelled to examine the looming shortfall between the TTF and what it was expected to finance indicated a cumulative gap of $3.7 billion over 12 years (Fiscal Year 2012 through Fiscal Year 2023).

While there is no easy fix, this problem can be addressed. 

Under the recommended $346.4 million TTF budget that Delaware Department of Transportation (DelDOT) Sec.  Shailen Bhatt recently unveiled, $78.9 million would be earmarked for public transit; $86.7 million for DelDOT salaries and wages; and $56 million for operating costs - a total of $221.6 million the TTF is financing beyond its original scope.

An additional $124.8 million will be needed to pay back interest and principal on debt incurred on capital projects.

That leaves only a little more than half the total TTF budget ($180.9 million) to finance road and bridge projects in the next budget.

As we did last May, we again propose moving DelDOT's operational expenses back to the General Fund over a five year period, starting with the budget that begins July 1^st.  Assuming a three-percent growth, the agency's budget will be $249.41 million in FY 2017.  Transferring $50 million of these expenses annually from the Trust Fund to the state's operating budget would bolster the TTF significantly.

Over the five-year transfer period, $749.41 million would be cumulatively"added" to the TTF.  In all, transferring DelDOT's operational expenses would make an additional $2.5 billion available to TTF projects over the next 12 years.  This may not entirely fix the problem, but it would go a long way towards placing the TTF on a sound financial footing and restoring its long-term health.

Absorbing DelDOT's operational expenses back into the General Fund budget is a process that will require tough choices and potentially unpopular decisions.  Critics will, unfortunately, try to undermine this proposal noting the pain and difficulty of making the transition.  But let's put this into context.

Fifty million dollars, while a significant amount of money, is approximately 1.4 percent of the proposed $3.5 billion operating budget.  And the money can be found.

Just last June the Jobs Infrastructure Fund was created, initially receiving $55 million.  Office of Management and Budget Director Ann Visali recently indicated that the fund might get even more money if state tax receipts improve.  We respectfully suggest that before creating new funds and obligations, we should first ensure the viability of the TTF, which in many respects is the original "Jobs Infrastructure Fund."   While there are numerous places we can look in the budget for the funding needed to address this problem, this might be one place to start looking.

The budget-writing Joint Finance Committee has just begun its deliberations.  If we make this choice now, the committee can account for the expense shift at the start of the process. 

When we first proposed this plan, Gov. Markell said he did not want to undertake any TTF reform until a new DelDOT secretary had been appointed.  Instead, the Markell administration dedicated a fraction of the state's unexpected $300 million revenue surplus to the TTF, placing a Band-Aid on the problem without addressing the underlying structural issues.  

DelDOT Sec. Bhatt is now eight months on the job.  We can no longer afford to address the symptoms and not the illness.  We can no longer kick the can down the road, delaying the tough choices for another day.

We've suggested one path forward, but we recognize it is not the only route through the darkened woods ahead.  In fact, we will seriously consider supporting any reasonable plan to restore the TTF to solvency that does not, yet again, rely on raising taxes, tolls and fees.  The time to act is now, if not on our proposal than on another.

This weekly e-newsletter is being offered as a free public service by the Delaware House of Representatives (Minority Caucus)  to provide accurate and timely legislative news and information.  Members of the news media can use as little or as much of the content as they wish, with or without attribution.

NEWS:

Business, Education and Healthcare Dominate Governor's Address

In photo:  The governor is ceremoniously escorted into the House of Representatives' chamber by a bipartisan group of legislators.  From left: Sen. Catherine Cloutier (R-Heatherbrooke), Sen. Bethany Hall-Long (D-Middletown), Gov. Jack Markell, State Rep. Biff Lee (R-Laurel) and State Rep. Dennis P. Williams (D-Wilmington North).

The familiar notes of improving education, fostering new businesses and reining-in state expenses were all sounded in the last State of the State Address of Gov. Jack Markell's current four-year term.

Speaking in the House of Representatives' chamber Thursday afternoon, Gov. Markell told the joint session of the General Assembly that his administration plans to increase state efforts to support emerging start-ups and growing companies in Delaware, working with State House Majority Leader Greg Lavelle (R-Sharpley) and State Rep. Bryon Short (D-Highland Woods) on the initiative.

"I was approached about a week and a half ago on this," Rep. Lavelle said. "The idea, as I understand it, is to establish some type of small business incubator where the state would provide promising entrepreneurs in the earliest stages of launching their businesses with some assistance."

The cost of electricity is also of concern, especially the rates charged by the nine municipalities operating electricity utilities.   "I have been approached by a number of businesses which, because they are located in the service area of a municipal power system, are required to procure their electricity from those municipalities at rates that are uncompetitive with those charged elsewhere in Delaware and - importantly - uncompetitive with other parts of the country where they have similar facilities," Gov. Markell said. "As expressed to me by Sen. Simpson and Rep. Dan Short, we need to work together to meet the expectations of companies choosing to do business here that the rates they will be charged for municipal power generation will be fair and competitive."

Just last week, State Reps. Lavelle and Jack Peterman (R-Milford) suggested the state review its energy policy, with an eye to reducing the cost of power, not only in the areas served by the municipal utilities, but throughout the state.

According to the U.S. Energy Information Agency (EIA), Delaware has the 13th highest residential electricity rate in the nation (13.8 cents per kilowatt hour) and the 13th highest rate for commercial customers (11.36 cents per kwh). Federal data also reveals that when compared to other states, Delawareans have the seventh highest residential average monthly bill ($129.07).

"Power costs are one of the top considerations for businesses," Rep. Peterman said. "Businesses in my district like Sea Watch International, Perdue and North American Cold Storage are all intensive power users and the cost of electricity impacts the welfare of their operations at the most fundamental level."

On another business front, the Port of Wilmington, which has often been the target of state investment, will apparently get additional attention. "In the coming months, we will consider opportunities for a public/private partnership to expand and modernize the port, significantly increasing our capacity to handle global trade," Gov. Markell said.

Improving the quality of public education will continue to remain a focus of policymakers. Gov. Markell said his administration will expand its World Language Expansion Initiative. "Over the next five years, we're going to create partial immersion programs in 20 schools, where students will spend half the school day learning in another language," he said.

The governor also said he wants to increase investment in early childhood education, including the implementation of a new kindergarten assessment "to let us know where our kids stand when they start school."

In the area of healthcare and wellness, the governor plans to aggressively pursue his goal of increasing the availability of bike paths, hiking trails and sidewalks. To the $7 million the state earmarked for such projects in the current budget, the governor proposes adding an additional $13 million in the new FY 2013 spending plan. "Building on the strong foundation of existing trails and greenways already in place, we can make Delaware one of the most walkable and bikeable states in America," he said.

While touting cost savings from last year's enactment of a reduced compensation and benefit package for new state employees, Gov. Markell said the state must reduce healthcare costs. "Last year we increased spending on Medicaid by $56 million and my budget will recommend an additional $21.7 million ... for next year. Over the last 10 years, this program alone has grown 127 percent."

Gov. Markell said the state is the leading single purchaser of healthcare services in Delaware. "Taken together, our Medicaid population and our state employees and retirees represent nearly 40 percent of the health insurance market here, accounting for a total of $1.7 billion of taxpayer expenditures."

He said the state will use that leverage "to insist on incentives for providers that are aligned to improve quality and discourage waste."

More details of what Gov. Markell discussed in his State of the State will emerge over the upcoming months, starting next Thursday when he presents his proposed operating and capital budgets for the upcoming fiscal year (FY 2013).

To see the complete text of the State of the State Address, click here. 

NEWS:

New Bill Would Require Agencies to Review Regulations

Supported by all 15 members of the House Republican Caucus, a proposal unveiled today would require every state agency to review its regulations once every five years.

"Delaware is not breaking new ground on this," said State Registrar of Regulations Jeff Hague. "There are many states that already require such a review including Arizona, New Mexico, North Carolina, Texas and Utah. In fact, most states requiring these evaluations mandate that they occur annually."

State House Minority Leader Greg Lavelle (R-Sharpley) said the House Republican proposal is not even new to Delaware. "Our Department of Education currently reviews all of its regulations at least once every five years. After looking at their example, we're confident our other state agencies can carry out this proposal with no additional expenditure."

State House Minority Whip Gerald Hocker (R-Ocean View) said such a review is prudent. "Regulations promulgated by state agencies carry the weight of law. It's kind of surprising to me that we don't already have an apparatus to re-examine regulations to ensure that they are needed, efficient, understandable and cost-effective."

The bill calls for agencies to review regulations while considering the following factors:

-  The continued need for the regulation;

-  The nature of complaints or comments received from the public 

    concerning the regulation;

-  The complexity of the regulation;

-  The extent to which the regulation overlaps, duplicates or conflicts

    with other federal, state, and/or local governmental regulations; and

-  The length of time since the regulation has been evaluated and/or

    the degree to which technology, economic conditions, or other

    factors have changed in the area affected by the regulation.

"This bill holds the promise of reducing needless, costly or ineffective regulation," said Rep. Lincoln Willis (R-Clayton). "Ultimately, adopting this common sense practice could reduce costs and make government more efficient."

Rep. Lavelle suspects some lawmakers may have an initial mistaken impression that the proposal would be burdensome, but he contends that is not the case. "State agencies currently revise and replace regulations as part of their normal operations. Under our bill, each time an agency reconsiders a regulation, its lifespan is renewed and the five-year clock starts ticking again. The central intent of this is to ensure that state agencies constantly take a fresh look at what they are doing and how they are doing it. That's a healthy process that should be a part of state government."

To help agencies comply with the measure, the bill calls for the Registrar of Regulations to develop a system that will give officials sufficient notice of what regulations need to be reviewed or face expiration.

Rep. Lavelle said while the proposal originated with House Republicans he considers it a bipartisan initiative, adding that the bill will be circulated to all House and Senate members for co-sponsorship prior to its introduction next Tuesday.

Rep. Hocker notes that this is the not the first time the 146^th General Assembly has tried to reform the state's regulatory processes. The following bills are currently pending action:

House Bill 54- Also known as the "Regulatory Flexibility Act," this bipartisan bill is intended to help relieve the regulatory burden on the small business community.  Based on model legislation and patterned after the federal Regulatory Flexibility Act, the measure would require state agencies to publish an economic impact study with proposed regulations. Officials would use the information to consider the costs of such regulations on small businesses and the feasibility of exemptions or less stringent compliance or reporting requirements.  Supporters of the bill include the General Assembly's Small Business Caucus, a group of Republican and Democrat legislators advocating for the small business community. They note that small businesses are the backbone of state's economy and that government data shows that 80-percent of Delaware companies have fewer than 20 employees.  Similar legislation (HS 1 f/ House Bill 390) passed the House of Representatives last year, but died in the Senate Executive Committee.

Status: Passed the House.  Pending action in the Senate Executive Committee.

House Bill 201 - This bill would require state agencies to publish an impact statement as part of their proposed regulatory changes.  Among other things, the statement would need to include the following:

• The purpose of the rule or regulation and who would be subject to comply with it;
• How those being regulated could obey it;
• The potential short-term and long-term costs of that compliance;
• The means by which the rule or regulation would be enforced and its costs;
• And the public benefit resulting from the rule or regulation change. 

Supporters of the bill say they believe it would be complimentary to House Bill 54. 

Status:  Pending action in the House Administration Committee. 

NEWS:

$150 Million Indian River

Inlet Bridge Opens 

In photo, from left: State Sen. George Bunting, Jr. (D-Bethany Beach), State Rep. Gerald Hocker (R-Ocean View) and Emily Hocker.  The new bridge is in Rep. Hocker's and Sen. Bunting's districts.

The effort to build a new bridge over the Indian River Inlet has been a long and winding road that finally led to the $150 million span's low-key opening on Friday.

The new cable-stayed bridge replaces a structure that was becoming an increasing safety concern. The current flowing through the inlet, among the most powerful on the East Coast, had undermined the bridge's supports, creating holes of up to 100 feet in some places.

The limited opening of the bridge is a milestone in a project surrounded by controversy since its inception. The project had to be put out to bid three times and suffered several setbacks, the most notable of which was the failure of an attempt to construct earthen approach ramps. That issue, involving millions of tax dollars, is still being litigated.

But on Friday there was a general sense of celebration at the near completion of the project, leading to more than a few light-hearted comments.

"There aren't many perks to being governor," said Gov. Markell. "But I think being the first to drive over the bridge is a pretty good one."

Among those officials joining Gov. Markell in a small convoy of vehicles that made the ceremonial first crossing was: U.S. Senator Tom Carper, 

State Reps. Gerald Hocker (R-Ocean View), Dave Wilson (R-Cedar Creek Hundred), Harvey Kenton (R-Milford), Pete Schwartzkopf (D-Rehoboth) and State Sen. George Bunting, Jr. (D-Bethany Beach).

Transportation workers opened one lane of the bridge to southbound traffic immediately following the event. One northbound lane will be opened to the public shortly. Demolition work will then begin on the old bridge.

According to officials with the Delaware Department of Transportation (DelDOT), all four lanes and the pedestrian and bikeway will be open sometime this spring.

DelDOT plans a larger ceremony, officially marking the opening of the bridge, later in the year.