The Delaware Senate today confirmed the nomination of Chancellor Leo E. Strine, Jr. to serve as the eighth Chief Justice of Delaware’s Supreme Court. The Governor issued this statement following the confirmation:
“The Senate’s unanimous decision to confirm Chancellor Strine further affirms his outstanding qualifications to lead Delaware’s judiciary. Today’s vote ensures our outstanding court system will continue to benefit from a Chief Justice with exceptional intellect and judgment.”
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$500 Million Increase over five years would improve roads and bridges, create jobs, and implement recommendations of Transportation Trust Fund Task Force
Wilmington, DE – Governor Jack Markell is asking legislators and Delawareans to support an increase in the state motor fuels tax as part of a plan to create a reliable revenue stream for the state’s Transportation Trust Fund (TTF), significantly boost spending on transportation projects statewide and put thousands of Delawareans to work over the next five years.
Delaware’s motor fuels tax has not been increased in the last 19 years (since 1995). The rates are .23 cents per gallon for gasoline and .22 cents per gallon for special fuels, including diesel. A ten-cent-per-gallon increase in motor fuel and special fuel taxes would generate an additional $50M for the trust fund that pays for roads, bridges and other essential transportation elements. The estimated additional cost to motorists would by $57 per year or $4.78 per month.
Under Governor’s Markell’s plan, increased motor fuels tax revenues would be coupled with a fiscally-responsible borrowing strategy that keeps DelDOT on track to paying down debt. Fifty million dollars would be borrowed each year for five years by DelDOT to fund already-identified, but delayed construction projects that address safety, congestion and maintenance needs under the State’s Capital Transportation Plan, Paving program and State of Good Repair initiative. The combination of $50 million in new revenue and $50 million in borrowing would pay for an additional $500 million dollar investment in transportation projects statewide over five years.
Since 1999, the TTF has been dependent on fluctuating monies from state escheat funds. It has also been financially challenged for many years by a combination of stagnant or flat revenue streams, residual debt, rising operating and construction costs, increased transit expenses, ongoing maintenance requirements, and steadily rising demand for new projects to keep pace with economic expansion and traffic growth. These challenges have caused the postponement or delay of more than 55 road projects in the current fiscal year. Deferral of projects leads to higher future costs in system maintenance, construction costs and right-of-way acquisition.
The Governor is acting on recommendations of the Transportation Trust Fund Task Force
The Governor’s proposal comes in response to recommendations made by a bi-partisan Transportation Trust Fund Task Force, established by House Bill 500 (Section 112), composed of 24 members representing the Delaware General Assembly, various state agencies and other stakeholders form the public and private sectors. In establishing the Task Force, legislators recognized the need for a comprehensive review of transportation demands and funds available to meet to the state’s needs, calling for “predictable and sustainable funding to improve and maintain Delaware’s transportation system.”
“The TTF has experienced insufficient revenues over a significant period, managed only by the delay of necessary capital projects, in order to size the budget to meet available revenues.”
from the 2011 Transportation Trust Fund Task Force Report
DelDOT has made considerable effort over the last two years to reduce operational costs and increase efficiency as part of the Governor’s Performance Review process. These actions included reducing consultant costs, reducing overtime, limiting cell phone usage, renegotiating contracts, eliminating vacant positions, improved technology and service delivery to increase efficiencies and reduce waste.
In addition, in the last two fiscal years the agency did not increase its operating budget and has reduced its debt while introducing performance management principles in every operating division, adopting a data-driven process for developing the state’s Capital Transportation Plan and restructuring its transit operations to achieve financial sustainability.
As significant as these actions are in creating efficiency and controlling costs, they alone are not enough to close the gap necessary to adequately fund the TTF.
Statements from the Governor, Secretary of Transportation and others supporting the plan
Governor Jack Markell said, “When it comes to funding transportation, there are no Democrat bridges or Republican roads. Citizens and legislators know we have numerous unmet transportation needs in our state, yet we have asked DelDOT to labor under a funding process that has been broken for more than a decade. The costs of not fixing it are real in terms of projects delayed, jobs not created, safety compromised and economic growth hindered. Now is the time to repair the situation and spur our state’s economy forward.”
Transportation Secretary Shailen Bhatt said, “Efficient transportation agencies that are responsive to the people they serve need consistent and reliable funding from year to year, and decade to decade. Without it, needed projects take longer to plan, become more expensive to build, and can sometimes be delayed for months or years beyond when they should have been built. Our planners and engineers, as well as our industry partners, need the certainty that a properly-funded transportation trust fund provides. Motorists need to know the roads they will be driving on now and in the future are as safe and congestion free as we can reasonably make them.”
Paul Morrill, Executive Director of the Committee of 100 and member of the Transportation Trust Fund Task Force said, “It was just obvious to the Task Force when we were meeting as we learned all of the challenges facing the Trust Fund that we were going to have to do something about it. I think that task force report has stood the test of time, so I’m glad to see that we’re moving toward implementing it… It’s not a partisan issue. It’s a competition issue, however. As the Governor often points out, we’re in a global competition in a global economy and without a world class infrastructure, we’re simply not going to be competitive. And that’s what our surrounding states have all recognized. We need to make this investment… It’s unprecedented I think the level of cooperation between the broad based business community and labor around a single issue.”
Ted Williams, President of Landmark Science & Engineering, former chairman of American Council of Engineering Companies of Delaware, and Chair of the Transportation Trust Fund Task Force said, “This is a very minimal impact on the average household in Delaware… but it’s going to be a major impact as an economic driver on the State of Delaware. Also, it’s going to be able to bring projects forward, especially the safety projects that are very instrumental in keeping our citizens safe, [and those that] allow our citizens to move around the state. It will also allow us to attract new businesses to Delaware and also keep the businesses in Delaware that are currently here.”
Sam Lathem, President Delaware State AFL-CIO said, “We need jobs and I can stand here and say I think [the Governor has] come up with the best way to do that in the borrowing and the revenue part of it. And so we knew it would cost and I think we all were at the place where we were ready to take that on… We stand united. We stand supporting the Governor and the Administration in trying to create jobs and put working men and women back to work.”
Transportation Investment Plan Facts
Transportation Trust Fund Task Force Recommendations
Delaware’s Transportation Trust Fund Task Force recommended several revenue-generating alternatives, including an increase in the state gasoline tax, in order to “correct a structural problem in the TTF.” The Task Force developed a list of options to address the TTF financial challenge. The options included (but were not limited to):
The Task Force left the selection of revenue alternatives for consideration of implementation to the Governor and the General Assembly.
The Task Force studied the entire transportation program for the period Fiscal Year 2012-2023 and concluded that total spending for transportation expenses over the period could reasonably be estimated to total $12.4 billion and that current revenue streams will support only 70% of those needs. The result of that imbalance, if not corrected, says the report, will be either the elimination of all new capital projects by 2017 or severe reductions in the Department’s Core Program resulting in an accelerated deterioration of Delaware’s transportation infrastructure.
The national recession of 2007-2009 caused TTF revenue decreases. The Task Force expressed concern about the potential negative impact such deterioration would have on the state’s economic competitiveness and ability to attract jobs.
The Transportation Trust Fund Task Force report also said that due to ongoing pressure on the General Fund and the inconsistent nature of the Escheat transfer to the Department, the Task Force decided that in order to represent a more accurate needs scenario, all future receipts of escheat funds should be removed from the financial projections and needs analysis.
Current and Proposed State Motor Fuel Taxes
The last increase in the Delaware motor fuel tax occurred in 1995. From 1995 through 2013, motor fuel tax revenues have grown by 25%, while the Consumer Price Index (CPI) has increased by 51%.
Over the next 7 years (FY 2014-FY 2020), motor fuel tax revenues are forecasted to decrease by 0.8% annually while the CPI has been increasing at an annual average rate of 2.4%.
The current Delaware Motor Fuel Tax rates are $.23 per gallon of gasoline and $.22 per gallon of special fuels.
The proposed rates would be $.33 per gallon of gasoline and $.32 per gallon of special fuels, with indexing to CPI.
Impact on Average Consumer
The average motorist drives 13,476 miles annually, averaging 23.5 miles-per-gallon, purchasing 573 gallons of gas a year. 573 gallons X $.10 = $57 additional cost annually, which equates to $4.78 additional per month.
Comparison with Other States in the Region
Risks and Returns on Transportation Investments for Delaware’s Future
What is the risk of doing nothing?
What is the return on investment?
Wilmington – Following President Obama’s State of the Union address, which focused on his vision for strengthening the workforce and growing the middle class by providing opportunities for all, Governor Markell issued the following statement:
“The President’s remarks focused effectively and powerfully on commitments that we must make together – in Washington and in states – to work toward our shared goal of ensuring economic opportunity for all Americans. Many factors are involved in creating these opportunities, but none are more important than access to quality education and job training. I was particularly pleased to hear the President’s emphasis on addressing some of our biggest challenges to strengthening our workforce now and for generations to come,” he said.
“Quality early learning has proven to be one of the most valuable investments we can make in a child’s future and our nation’s future economic competitiveness. The President’s plan would allow states to provide opportunities to many more children, and we have seen the positive difference this can make in Delaware with the increase in the number of low-income children participating in quality programs.
We also know that we must better align learning experiences with the skills that have the most value in the workforce, which requires following through on the President’s commitments to give students a more rigorous and relevant education in our schools and improve on-the-job training opportunities for our workers.
And the President recognizes that a high school diploma is no longer a ticket to a good job for most of our students. It’s critical that we build on the White House’s college opportunity summit, where Delaware was featured this month, to ensure students have the information and financial aid resources they need to take advantage of college options that best suit them.”
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Photos are available for media use on Flickr.
DOVER – Delaware’s community farmers’ markets set a new sales record in 2013, with shoppers buying more than $2.1 million in fresh produce and other goods, the Department of Agriculture said Tuesday.
Gov. Jack Markell and Secretary of Agriculture Ed Kee announced the news at an annual farmers’ market managers’ meeting in Dover, praising their work and the work of the many growers and producers who sell at the markets.
“This record-setting year is a perfect example of what can happen when communities, business and government work together to increase economic opportunities and strengthen our neighborhoods,” Gov. Markell said. “These markets offer Delaware’s best farm-fresh products to consumers and create vibrant gathering spots in our towns and cities.”
The markets help support farmers by offering another sales outlet, but also by directly connecting growers and consumers, Kee said.
“Interest in healthy eating and local foods has been dramatically on the rise in Delaware. There is no better way to encourage that than by giving shoppers the opportunity to have conversations with the men and women who nurture and grow their corn, lettuce, sweet potatoes, watermelons and apples,” Kee said. “This success is directly due to the leadership of our market managers and community leaders, and we want to help them expand and grow as we continue to move agricultural opportunities forward.”
Sales for 2013, which featured 26 markets in all three counties, passed $2.1 million, up $200,000 over 2012. Four years ago, the 2010 season had 14 market sites and $1.3 million in sales.
Produce made up 62 percent of the total sales, with the remainder coming from value-added products such as meats, cheeses, jellies, breads, salsa, eggs or honey.
Delaware’s farmers’ markets are all run at the local level, by municipalities, business groups, farmers or market associations, with the Delaware Department of Agriculture providing support and marketing assistance.
Use of the Electronic Benefits Transfer (EBT) card system is growing steadily, allowing families to purchase local produce and food items as part of the Supplemental Nutrition Assistance Program. Six markets offered transactions during 2013, for $2,300 in sales. The Wilmington Farmers Market at Cool Spring Park also had more than $9,000 in sales through its community-supported agriculture program made through the EBT network. Several other markets are planning to expand into the program in 2014.
The 2014 farmers’ market season will begin in April with the opening of the Milton market. Most markets start their operations in May, June and July. A full schedule will be released later this spring.
Farmers and others interested in becoming a vendor, or community groups interested in starting a local market, can contact Department of Agriculture marketing specialist David Smith at (302) 698-4522 or davidm.smith@delaware.gov.
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Contact:
Dan Shortridge
Chief of Community Relations
Delaware Department of Agriculture
302-698-4520
daniel.shortridge@delaware.gov
Project includes beneficial reuse of dredged sand to widen the beach at South Bowers
BOWERS BEACH, Del. (Jan. 27, 2014) – Today, Governor Jack Markell and DNREC Secretary Collin O’Mara announced the project that will improve safety and navigable access of the Murderkill River and nourish the eroding shoreline at South Bowers Beach. Bowers Vice Mayor Ada Carter, state legislators, town council members and representatives of Delaware’s commercial and recreational fishing industries joined in the tour to view the project now under way.
The project involves dredging approximately 45,000 cubic yards of material from the federal navigation channel in the river and the beneficial reuse of the clean dredged sand to widen the beach at South Bowers. The dredging of the Murderkill River will ensure safe navigation for the boating public, while the sand protects homes, infrastructure and habitat from the impacts of coastal storms. Nearly three-fourths of the dredged material is suitable beach-fill quality sand. The remaining unsuitable dredged material will be placed in an approved offshore disposal site.
“This project is a win for Bowers, South Bowers and Delaware,” said Gov. Markell. “Improving navigation of the Murderkill River supports our economy, tourism and commercial and recreational fishing. By reusing the clean dredged sand to build a wider, more storm resistant beach, we are also improving our resiliency and preparedness for coastal storms.”
“The beneficial reuse of clean dredged material from navigation projects is the most cost effective way to nourish eroded shorelines,” said Sec. O’Mara. “Rather than discarding dredged material at a disposal site, we are using the clean sand to nourish a protective beach here at South Bowers and providing a model that can be replicated up and down the East Coast.”
The communities along the Delaware Bayshore, like Bowers and South Bowers, enjoy a deep and rich maritime heritage and remain home to the state’s commercial and recreational fishing vessels. Fishing is very important to the local economy and vital to the economy of the state.
According to American Sportfishing Association, the economic value of recreation fishing in Delaware is almost $150 million annually, while the commercial fishing industry’s annual value is estimated at about $10 million. However, commercial and recreational boaters are experiencing difficulties navigating the state’s waterways due to the buildup of silt and sediment along main channels.
Many of the state’s waterway management obligations, including dredging and channel marking in federally authorized waterways, have defaulted to DNREC in recent years. In the absence of federal funding, the State has stepped in and dredged the Murderkill River four times since the 1980’s.
The project is expected to cost $950,000 with funding provided by the State Legislature. An appropriation in the amount of $627,000 was provided in the FY 2013 Bond Bill, with the balance being paid through DNREC’s Shoreline and Waterway Management Bond Bill appropriation.
Manson Construction is the contractor for the project. Barring any weather-related issues, the project is expected to be completed in early February.