Board presents recommendations across focus areas to improve efficiency and accountability in state government

WILMINGTON, Del. – Governor John Carney on Thursday released the second annual report of the Government Efficiency and Accountability Review (GEAR) Board. Governor Carney established GEAR by Executive Order in February 2017 to identify ways for state government to operate more efficiently, improve the delivery of state services, and save costs over the long term.

By December 1 of each year, the Board must submit a report to the Governor that provides recommendations for possible inclusion in the upcoming recommended state budget. Governor Carney will present his Fiscal Year 2020 budget proposal on January 24, 2019 at the Delaware Public Archives in Dover.

“Since taking office I have talked to Delawareans about our commitment to operating state government more efficiently, and identifying cost savings so we can direct resources where they are most needed,” said Governor Carney. “We remain committed to improving the way we deliver state services, and spending taxpayer dollars responsibly. That’s what Delawareans expect. Thank you to members of GEAR for their important work on this report.”

Members of the GEAR Board presented Governor Carney with a series of recommendations for efficiency initiatives to be implemented across a number of focus areas – including criminal justice, education, financial services, health and social services, human resources, information technology, and public private partnerships. Among these recommended efficiency initiatives are activities that state government agencies can undertake to improve the quality of services, lower the cost of agency operations, and create new methods for improving the recruitment, development, and retention of State employees.

Read the 2018 annual report for full details.

“GEAR seeks to make specific recommendations that will increase the efficiency of state government, improve the state’s strategic planning process, further institute the use of metrics in resource allocation decisions, and develop sustainable continuous improvement practices,” said James Myran, Executive Director of GEAR, and Bryan Sullivan, Director of Management Efficiency at the Delaware Office of Management and Budget. “We’re working to create the process effectiveness and transparency that Delaware citizens expect from their government.”

Visit GEAR’s website for more information, and to submit an idea for improving the way state government operates.

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The Delaware Division of Revenue would like to remind businesses subject to the Hazardous Substance Cleanup Act (HSCA) that a new tax rate will being going into effect on January 1, 2019. The new adjustable rate for 2019 will be 1.5244%, and will apply to the taxable gross receipts from the sale of petroleum or petroleum products. The Division of Revenue will be updating this rate in their online system before the effective date of January 1, 2019.

The tax rate through December 31, 2018 is 0.9%, but recent legislation has adjusted the rate so that it will be based on a lookback period starting January 1, 2019. The new adjustable rates cannot be lower than 0.675% or greater than 1.675%, and are calculated by multiplying 0.9% (the original rate) by a fraction – the numerator of which is $15,000,000 and the denominator of which is the total collections in the fund during the lookback period (July 1 to June 30 of the prior year).

The HSCA was passed by the Delaware General Assembly in July of 1990 to ensure funding for the cleanup of facilities with a release or imminent threat of release of hazardous substances. The Department of Natural Resources and Environmental Control has identified over 700 sites in Delaware as potential hazardous substances release sites.

If you have questions about the new adjustable tax rate, please contact the Delaware Division of Revenue at (302) 577-8205.

Order will create subcommittee focused on bettering health care spending, quality across the state

WILMINGTON, Del. – Governor Carney on Tuesday signed Executive Order #25 establishing health care spending and quality benchmarks. This Executive Order will form a subcommittee of the Delaware Economic and Financial Advisory Council to focus on reducing the cost of health care for Delaware families, taxpayers, and businesses. The subcommittee will advise DEFAC and other relevant state agencies on spending, and will work closely with the Delaware Health Care Commission (DHCC) on improving the quality of health care in Delaware.

“Delaware has consistently ranked among the highest-spending states for health care, but we have not traditionally been a leader in health care outcomes. That needs to change,” said Governor John Carney. “This Executive Order reaffirms our commitment to lowering costs for Delaware families and improving the quality of care that Delawareans receive. We’ll do that, first and foremost, by improving transparency around the cost of health care services.”

In addition to setting the State’s health care spending benchmark for 2019 and beyond, the new subcommittee will consistently review its methodology and provide the public and interested stakeholders an opportunity to provide input and consider their recommendations.

This Executive Order also lays out quality benchmarks for the State for calendar years 2019 through 2021 for the Delaware Health Care Commission to follow in the categories of:

• Emergency Department Utilization Rate,
• Opioid-Related Overdose Deaths,
• Overlapping Opioid and Benzodiazepine Prescriptions,
• Adult Obesity,
• Adult Tobacco Use,
• High School Students Who Were Physically Active,
• Statin Therapy for Patients with Cardiovascular Disease, and
• Persistence of Beta-Blocker Treatment After a Heart Attack.

These quality benchmarks will be reviewed every three years, starting after 2022, to reflect improved health care performance in the state.

“I am grateful to all of the health care stakeholders for the work they have done to change how care is delivered and paid for in our state,” said Department of Health and Social Services (DHSS) Secretary Dr. Kara Odom Walker, a board-certified family physician. “As a state, we must address the cost of health care and the outcomes we are getting for that spending. The Executive Order that Governor Carney signed adds transparency and attention to our health care system, both from a spending and a quality standpoint. Today is an important milestone in moving toward a health care system that is financial sustainable for families, employers, providers and insurers, and one that rewards providers for keeping Delawareans healthy.”

This Executive Order was based on recommendations from Secretary Walker in August of this year, after a year of outreach and feedback from health stakeholders. Secretary Walker will publish a manual that contains the methodology for the health care spending and quality benchmarks no later than January 31, 2019.

“For more than four decades, the Delaware Economic and Financial Advisory Council has played a vital, non-partisan role in tracking national and state economic trends and preparing credible and trusted state revenue and expenditure estimates,” said Rick Geisenberger, Secretary of Finance. “This Executive Order creates a DEFAC Health Care Spending Benchmark Subcommittee that will solicit public and stakeholder input toward recommending a credible and trusted annual target for per capita growth of total health care costs in Delaware.”

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The Delaware Division of Revenue online business license system is now open for 2019 renewals. Any business whose license expires on December 31, 2018 may visit de.gov/renew to renew using a credit card, debit card, or by direct debit from your bank account. This convenient online service is available 24 hours a day, seven days a week – and it’s fast, easy, and secure.

More than half of Delaware’s licensed businesses use the online renewal service, which is convenient, and allows you to print a temporary license directly from your computer – a benefit for any business that requires immediate proof of current licensing, such as contractors and businesses receiving government payments. Additionally, you may elect to renew your license for one year or for three years.

To complete the online renewal, you will need your Tax ID Number as well as your Business License Number. You’ll find your Business License Number on your current license or on the annual License Renewal Notices that will be sent to businesses later in November.

For more information, please contact the business license office at (302) 577-8778 or BusTax@delaware.gov.

In an effort to reduce ongoing outstanding tax balances, Delaware Division of Revenue Director Jennifer R. Hudson has announced publication of the Top 100 Delinquent Individual and Business Taxpayers lists to the State’s Delinquent Taxpayers website. By statute, the Division is required to post the names of the individuals and businesses who owe the most unpaid taxes to the state.

The published lists include the top business and personal taxpayers, each of whom owes a tax balance of more than $1,000, who were not on the last list that was published, and against whom the Division has filed a judgment. Collectively, the taxpayers included on the lists owe more than $3.6 million to the State.

Taxpayers who have entered into payment agreements with the Division of Revenue, who have filed for bankruptcy protection or who have a pending appeal of a proposed liability are excluded from the published lists.

“The Division of Revenue is committed to collecting all amounts that are owed to the State, and using all tools that are available to us to do so.” Hudson says. “While a large percentage of taxpayers resolve their liabilities to avoid having their names posted online, many others will wait until their names are actually published to resolve their accounts.”

If you have questions regarding the delinquent taxpayer lists, please contact the Delaware Division of Revenue’s Account Management Department at (302) 577-8785.