Governor’s Weekly Message Transcript – Strengthening Economic Opportunities for our Veterans

Across Delaware and across the country, the coming Veterans Day provides a special opportunity for parades, recognition ceremonies, and other celebrations. As Commander in Chief of the state’s National Guard, I feel an incredible sense of pride at this time – thinking about the thousands of military men and women who have represented Delaware, both abroad and in domestic emergencies. But we can be particularly proud as a state because our appreciation for veterans reaches far beyond national holidays.

Past and present service members were hit especially hard by the recent recession. Thanks to a concerted effort by our business community with support from government agencies, our veterans’ economic opportunities have improved. The unemployment rate for our most recent returning veterans plummeted from 13 to six and a half percent over a couple of years. And working together we have identified unnecessary obstacles that service members and veterans, and their families face in transitioning to the civilian world.

Earlier this year we removed another one of those obstacles by allowing military education, training and experience to count when issuing professional licenses. Previously, when medical personnel like Deshawn Jenkins returned from treating members of our armed forces overseas and wanted to pursue the same line of work in Delaware, they were required to complete an entire new educational program because their military training didn’t help them qualify for a nursing license. Now we’ve corrected Delaware’s licensing system so veterans can compete for jobs on a fair playing field.

Even as we recognize our state’s progress, we can’t declare victory. As long as one veteran isn’t getting a fair shot, we have more to do. This Veterans Day, let’s recommit to giving them the opportunities they’ve earned. That will keep Delaware moving forward.


Employers to Save Hundreds per Employee over Next Two Years as UI Trust Fund Completes Accelerated Loan Repayment

Trust Fund forced to borrow during Great Recession to pay benefits; final payment on federal loan ensures Delaware businesses will avoid punitive increase in federal taxes

Wilmington, DE – As a result of legislation proposed by Governor Markell and members of the General Assembly in 2013, the Unemployment Insurance Trust Fund, which had been severely depleted during the Great Recession and had to borrow from the federal government to ensure benefits could be paid, today finished repaying the federal loan – saving the average Delaware employer $288 per employee in increased fees and penalties over the next two years.

If the federal loan had not been retired by November 10, 2014, Delaware employers would have owed $105 per employee in January under the Federal Unemployment Tax Act (FUTA), rather than returning to the normal pre-recession amount of $42 per employee.  Without enactment of House Bill 168 in 2013, the Trust Fund would not have repaid its loan until after November 10, 2015, subjecting Delaware businesses to an even stiffer federal penalty – and a FUTA bill of $315 per employee in January 2016.

“We recognize the impact this effort has had on the business community and I want to thank them for their willingness to work with us on a solution,” said Governor Markell.  “By accelerating the loan’s repayment, we have reduced the overall tax burden on our employers in the near term, and begun to restore the long-term health of our Unemployment Insurance Trust Fund so it can better support workers in difficult times. The money Delaware businesses will save means more opportunities to reinvest in their companies now, including their workforce, and more activity for Delaware’s economy.”

“This was a tremendous team effort including the Administration, the Legislature, organized labor, and the business community,” said Sen. Marshall, a member of the Unemployment Insurance Advisory Council that approved the reform package as well as a lead sponsor of HB 168.  “The end result illustrates what we can accomplish when we all work together.”

The Trust Fund was able to repay the federal loan because of the revenue and savings generated by provisions of HB 168.  That legislation – crafted with the assistance of representatives of both employers and employees – increased the amount of wages per employee that is subject to state unemployment tax (from $10,500 to $18,500), while also saving more than $2 million per year by implementing a one-week waiting period (through 2017) before unemployed workers can start receiving their benefits.

“This was a very difficult process, but we have finally reached the point where we can restore the full FUTA credit to the business community and begin replenishing the Unemployment Trust Fund,” said Rep. Mulrooney, another member of the Advisory Council and a primary sponsor of HB 168.

Even at the higher taxable wage base, the state’s cost per employee is still less than Maryland, Pennsylvania and New Jersey because of the state’s low UI tax rate.

“None of us wanted to pursue this course of action,” said Bob Byrd, another member of the Advisory Council, “but it simply had to be done and it needs to be remembered that these funds helped a larger number of our citizens during a most troubling economic period.”

Without HB 168, an average employer would have paid $136.50 per employee in combined federal and state unemployment taxes in January 2015, and $346.50 per employee in January 2016, totaling $483 over the two years.  Now, that same employer will pay $97.50 in combined taxes per year for a total of $195, resulting in a total two-year savings of $288 per employee.

“House Bill 168 was designed to bring some relief for our hardworking businessmen and women who have spent the last seven years recovering from the recession.  With their support we were able to implement this legislation, which allows them to avoid onerous federal tax penalties that would have hindered their efforts to not only to survive, but to grow during these difficult economic times,” said Delaware State Chamber of Commerce President Rich Heffron.  “The business community’s close involvement in reforming the unemployment insurance trust fund was critical to ensuring that the state’s taxable wage base shrinks as quickly as possible once the Trust Fund is healthy again.”

“This bill had the support of the business community and labor leaders,” said Governor Markell, “because it was the most responsible way to pay off the loan early enough to ensure employers avoided the increasingly punitive spike in federal UI taxes, while also minimizing the impact on the unemployed.”

As a consequence of the severity of the economic recession, Delaware’s Unemployment Insurance Trust Fund was forced to borrow funds to pay unemployment benefits beginning in March 2010, reaching a high of $78 million in March, 2013.  Thirty-six other states also were required to borrow money to pay benefits – eleven of those states have yet to repay their loans.

“Like most states’ UI trust funds, Delaware’s trust fund was forced by the recession to borrow money to support Delawareans who were out of work through no fault of their own,” said Labor Secretary John McMahon.  “House Bill 168 has accomplished exactly what we had hoped for our employers and our workers.  As the economy improves, it is critical that we put our Trust Fund back on solid footing.”


Schools Make Gains, Exit Turnaround Programs

Students in nine schools have made significant gains, allowing the buildings to exit state support programs for low-performing schools, the Delaware Department of Education announced today.

“I applaud the administrators, educators, students and families of these schools who have worked hard to make progress for our students,” Gov. Jack Markell said. “As we recognize these improvements, it’s important that we remember that the statistics aren’t just numbers. They represent young people who will have better opportunities to reach their potential, thriving in the classroom and beyond. Smart investments in the right programs and the leadership of schools that serve our highest need populations can make a difference and help all of our students succeed.”

Secretary of Education Mark Murphy also congratulated the schools.

“Thanks to targeted resources and support coupled with the hard work of our educators and their school communities, students in these buildings across the state are learning more and performing better in reading and math,” Murphy said. “When schools are struggling, we have an obligation to their students and families to ensure they get the help they need. These school communities should be proud of how their hard work has paid off for the benefit of their children.”

Four of the buildings were part of the state’s second cohort of Partnership Zone schools: Capital School District’s Dover High School and Red Clay Consolidated School District’s Lewis Dual Language Elementary, Marbrook Elementary, and Stanton Middle schools.

Dover, Lewis, and Marbrook each made adequate yearly progress (AYP) at least once over the past two years and did not show any major regressions in student performance, the exit criteria outlined under the state’s federal Race to the Top plan. In addition to performance goals in reading or math, schools must meet other targets, such as participation in reading or math and graduation rate or attendance rate to meet AYP.

Stanton exited based on a second option for targets set under the state’s federal Elementary and Secondary Education Act Flexibility Waiver. Calculated based on the school’s baseline data, these were year-by-year targets to reduce the non-proficiency rates in the school by 2017 for reading and math.

The other five buildings were Focus Schools: Capital’s Booker T. Washington and Fairview elementary schools, Christina’s Newark High School and Oberle Elementary School and Milford’s Banneker Elementary School.

Both Fairview and Booker T. Washington have improved educational outcomes for their students from low-income families. Since the 2010-11 academic year, low-income students at Fairview have shown strong growth in reading and math of more than 22 points while Booker T. Washington Elementary has seen impressive growth among this group of students in reading and math of more than 37 points. Fairview narrowed its achievement gap from 22.8 points to 10.9 points while Booker T. Washington did so from 36.8 points to 8.7 points.

At Newark High, students from low-income families have shown growth over the same time period of more than 20 points, at almost double the pace of other subgroups. The achievement gap between low-income and non-low income students was reduced by 8.6 points.

Since the 2012-2013 school year, Oberle Elementary School has not only recovered from the drop in performance for its English learner students but the percent of students proficient increased from 23.3 percent to 56.6 percent, showing a one-year growth gain of 33.3 percent. This is a gain of 47 percent from the school’s baseline in 2010-2011.  During the same time period, the school’s subgroups of low-income and Hispanic students made gains of more than 26 percent and 27 percent, respectively.

And at Banneker Elementary School since the 2010-2011 school year, low-income students have shown remarkable gains of more than 41 points in reading and math, and Hispanic students have shown gains of more than 52 points.

The department has provided each school with funding to use toward celebrations at the school sites, recognizing the hard work and commitment of teachers and staff.


Artist Fellow Gabriel Jules to show work in the Mezzanine Gallery in November

The Delaware Division of the Arts Mezzanine Gallery is pleased to present an exhibition of original work by Gabriel Jules titled Natural Selections from November 7 -26, 2014. The Gallery, open weekdays from 8:00 a.m. to 4:30 p.m., is located in the Carvel State Office Building, 820 N. French Street, Wilmington. A reception will be held for the exhibition where the public can meet the artist on Friday, November 7, 2014 from 5:00-8:00 p.m.

The exhibition presents a selection of recent etchings, monotypes, and collage works by Jules, exhibiting the artist’s unique representations and keen interest in the natural world. Her work features imagery of landscape and wildlife presented with a signature graphic sensitivity and through a variety of monochromatic and color printmaking techniques. Jules is the recipient of a 2014 Delaware Division of the Arts Established Artist Fellowship in Visual Arts-Work on Paper.

Gabriel Jules has exhibited widely and her work is included in private collections throughout the United States and internationally. She is represented by Washington Printmakers Gallery in Silver Spring, Maryland, a gallery that specializes in fine art, hand-pulled original prints. Gabriel Jules lives and works in Seaford, Delaware.


Lewes, Del.’s Zwaanendael Museum to close at Noon on Thursday, Nov. 6, 2014

(DOVER, Del.—Nov. 3, 2014)— The Zwaanendael Museum, located at 102 Kings Highway in Lewes, Del., will close at Noon on Thursday, Nov. 6, 2014 for Return Day, a ceremonial holiday held on the Thursday after Election Day in Georgetown, Del. Return Day features the announcement of Delaware’s election results and has become an occasion for extensive festivities. The Zwaanendael Museum will return to its regular hours of operation on Friday, Nov. 7, 2014.

Zwaanendael Museum hours from Nov. 1 to March 31 are Wednesday through Saturday, 10 a.m. to 4:30 p.m. From April 1 to Oct. 31, museum hours are Tuesday through Saturday, 10 a.m. to 4:30 p.m.; and Sunday, 1:30 to 4:30 p.m. Admission is free. For additional information, call 302-645-1148.

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Contact:
Jim Yurasek
Delaware Division of Historical and Cultural Affairs
Phone: 302-736-7413
E-mail: Jim.Yurasek@delaware.gov
Web: http://history.delaware.gov