Blank will tour solar manufacturing facility to highlight President’s State of the Union clean energy, manufacturing initiatives

WASHINGTON – Roughly a week after President Obama laid out plans in his State of the Union address to support an economy built on American manufacturing and American energy, Acting Deputy U.S. Commerce Secretary Dr. Rebecca Blank today will visit SolarDock, a Wilmington-area company that designs, manufactures and installs next generation solar power systems. She will meet with SolarDock founder Scott Johnson, partner Edward O’Brien, and employees and tour the manufacturing facility, along with Delaware Lieutenant Governor Matthew Denn.
Blank’s visit will highlight the President’s plans to strengthen U.S. manufacturing and foster a new era of American energy development. In the State of the Union, the President proposed reducing tax rates for American manufacturers and doubling the tax deduction for high-tech manufacturers. He also called for Congressional action on clean energy tax credits and laid out a proposal for new incentives to encourage manufacturers to make energy efficiency upgrades that would save $100 billion on the nation’s energy bills.

Blank will also discuss the Department’s efforts to support American manufacturers, so they’re better able to build their products in America and sell them all around the globe. The Commerce Department currently helps support manufacturers in several ways, including recently creating the National Advanced Manufacturing Partnership Program Office to bring together stakeholders and drive investments and initiatives in advanced manufacturing. Meanwhile, the Department’s trade specialists, who are located in offices throughout the country and in more than 70 nations around the world, work daily to connect U.S. businesses looking to export to buyers overseas, and Commerce’s U.S. Patent and Trademark Office helps businesses and entrepreneurs transform their ideas into new products and innovations.

Blank will be available to press to discuss the President’s proposals and what Commerce is doing to help Delaware businesses after her tour. She was appointed acting deputy secretary in October, having served as Acting Secretary from August-October 2011. She joined the Obama Administration as the head of the Department’s Economics and Statistics Administration. Blank previously served as a member of President Clinton’s Council of Economic Advisors.

DOVER –  In his weekly message, Governor Markell talks about the priorities reflected in the balanced budget proposal he unveiled this week.  The proposed Fiscal Year 2013 budget invests in jobs and public education, keeps the state’s commitment to critical areas like public health and safety and balances without the need to raise taxes or add new fees.

“Budgets are about priorities – our budget proposal makes clear that our top priorities are encouraging economic growth, making our public schools stronger, and ensuring that we are governing effectively,” said Markell.

With jobs remaining the Governor’s top priority, the budget proposal makes several investments in economic growth, including replenishing the Strategic Fund to help attract new employers and expand efforts to grow small businesses.

“Our focus on getting people back to work is why our budget replenishes the strategic fund so we can have more stories to tell like the expansions at places like Amazon, Mountaire, Johnson Controls or PBF Energy. It’s why we’ve focused the investments in our capital budget on projects that both get people to work building them and improve our quality of life, so our state can remain a great place to build a business and raise a family.”

The budget proposal includes significant investments in education, including additional state funding for 111 new teacher units in schools, step increases for school employees, salary increases for paraprofessionals, and continued efforts to improve early education. The budget also continues years of efforts to govern responsibly by finding ways to cut costs.

“I look forward to working with the members of the General Assembly, particularly the members of the Joint Finance Committee, over the coming months to make progress on these shared priorities and to enact a reasonable, responsible budget, one that rises to meet some of the challenges we face and positions our state well – to help people get back to work, invest in stronger public schools, govern responsibly, and keep Delaware, moving forward.”

About the Governor’s Weekly Message:

At noon every Friday, the Governor’s office releases a new Weekly Message in video, audio, and transcript form.  The message is available on:

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Delaware.Gov: http://governor.delaware.gov/information/podcast_video.shtml
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Transcript of the Governor’s Weekly Message: Budget Priorities: Growing Jobs, Investing in Education, Governing Responsibly

Meets Growing Demands without Raising Taxes

Photos available for media use on Flickr

Dover, DE – Governor Jack Markell today unveiled a balanced budget proposal that invests in jobs and public education, keeps the state’s commitment to critical areas like public health and safety and balances without the need to raise taxes or add new fees.

“Budgets are about priorities, and this budget makes clear that our top priorities are encouraging economic growth, making our public schools stronger, and ensuring that we are governing responsibly,” Markell said.

The budget continues years of efforts to govern responsibly by finding ways to cut costs. The state has cut over 1,000 state employee positions, enacted state employee health and pension reform that should secure over $480 million in savings over a 15-year period; reduced specific operating expenses like state-agency printing and advertising expenses; cut the state’s energy costs through reverse auctions; slashed the state’s fleet by 895 vehicles; and reduced costs by renegotiating state leases. These efforts have helped to reduce expenses while ensuring the state maintained its AAA bond rating, which keeps down the cost of borrowing.

“We remain very focused on investing and spending taxpayer dollars wisely.  In order to cover the cost of increasing demands on state government, we must continue to find savings and efficiencies in our state agencies, “ Director Visalli said.

While the recommended budget includes an additional $21.7 million dollars for Medicaid, the Governor made clear during his State of the State and in this budget address that the state will focus this year on bringing down those costs. Over the last 10 years, Medicaid spending has grown 127 percent, to the point where federal and state spending together now exceeds $1.2 billion each year.

“As I mentioned in the State of the State, tackling these spiraling costs – moving from paying for sick care to paying for health care – has to be a priority or we’ll lose the ability in the future to invest in areas like education that are critical to economic growth,” Markell said.

The budget proposal includes significant investments in public education, including additional state funding for 111 new teacher units in schools, step increases for school employees and salary increases for paraprofessionals. While federal Education Jobs Act funds had helped support local districts this year, the federal government did not renew that program. To support local districts and keep educators working, the Governor’s budget recommends the state replace those lost federal dollars with an additional $27.4 million dollars in state funds, which is the largest single additional investment in the Governor’s budget proposal. Public education also receives a boost in the Capital Budget, which dedicates $116.1 million for school projects.

With additional investments in early childhood education and support for the SEED and Inspire college scholarships, the budget recognizes that education cannot begin the day a child arrives for kindergarten or end the day someone crosses the stage with their high school diploma. The state’s recent success in the federal government’s second Race to the Top contest (the “Early Learning Challenge”) means federal resources will also be available to complement the state’s early childhood investments.

“Great schools are an important factor in our ability to attract new jobs to Delaware now. Great schools that graduate kids who are ready to succeed in work or college are critical to our state’s – and those kids’ – economic future,” Markell said.

With jobs remaining the Governor’s top priority, the budget proposal makes several investments in economic growth. The Capital Budget would replenish the state’s Strategic Fund, which has helped attract new employers and expand existing workforces at companies like Amazon, Mountaire Farms, Baltimore Aircoil, Nanticoke Hospital, Johnson Controls and PBF Energy, which reopened the Delaware City Refinery. These Strategic Fund resources would also support some of the Governor’s expanded efforts to help small businesses.

“We need to keep focused and keep pushing forward in our efforts to expand economic opportunity and make our state an even better place to start and grow a business,” Markell said. “Companies deciding where to invest and hire also look for places with clean air and water and for places parks and recreational trails that make life for employees and their families healthy and rewarding.  Quality of life matters deeply to them because it matters to their workforce.  If we overlook them, our state is likely to get overlooked.”

Given the importance quality of life issues can play in economic development, the Governor’s capital budget recommends $13.3 million for a series of Statewide Trails and Pathways; $2.6 million for libraries; a $1.3 million investments in the state’s Clean Water State Revolving Fund and $1.9 million for the Drinking Water State Revolving Fund, each of which will leverage several million in additional federal funds; $4 million for the state’s Housing Development Fund and $2.1 million to redevelop strategic sites like NVF and Fort Dupont. It invests in public-safety projects like the new Delaware State Police Troop 3 in Camden and Troop 7 in Lewes and supports $7.5 million in federal funds for the new Delaware National Guard Armory in Dagsboro with $2.5 in state capital funds.

While the unveiling of the Governor’s budget proposal traditionally focused on the Operating and Capital Budgets and was led by the Governor and Ann Visalli, the Director of the Office of Management and Budget, the Department of Transportation’s Secretary Shailen Bhatt included his proposals this year for the state’s Transportation Trust Fund. Bhatt explained the agency’s new approach to operating –  called TEAM DelDOT (for Transparent, Efficient, Accountable and Measured) – and new approach to budgeting, which includes more closely aligning agency staff and financial resources with the department’s capital program and operational needs.

“Sound management of our infrastructure and our transportation dollars is an important part of our state’s fiscal health,” Markell said. “DelDOT has made clear their budget priorities are to be realistic and responsible while maintaining a robust capital plan to create jobs and meet the state’s transportation needs.”

The Fiscal Year 2013 Recommended Operating Budget totals $3,544.5 million, an increase of 1.025% over the Fiscal Year 2012 budget.  The Fiscal Year 2013 Recommended Bond and Capital Improvements Act totals $448.0 million and the Governor has also recommended a Grants in Aid set-aside of $40.2 million.  Total recommended Fiscal Year 2013 General Fund appropriations are $42.6 million less than Fiscal Year 2012.

The Fiscal Year 2013 Operating Budget and Capital Improvements Act fully funds the state’s Rainy Day Fund, adheres to the state’s three-part debt limit, seeks to maintain the state’s AAA bond rating and appropriates only 98% of available revenue.

A power point of the proposal is available online: http://budget.delaware.gov/fy2013/budget_presentation.pdf.

2010 Analysis Substantiates the Value of Tourism to First State

DOVER – A study was conducted by D.K.Shifflet & Associates Ltd. and Vantage Strategy, a research firm and consulting firm respectively, to determine the economic impact of tourism in the State of Delaware. The study shows that the tourism industry is a principal economic driver in Delaware and substantiates the value of the tourism industry to the First State. Key points stemming from the 2010 study are reflected in the quotes below and subsequent facts.

“The tourism industry stands strong as the third largest private employer in Delaware and an important part of our local economy,” said Governor Jack Markell. “Visitors to our state contribute to our economic well-being by helping to create jobs at all income levels. They cultivate local businesses and communities and contribute to a greater quality of life for all Delawareans.”

“Delaware tourism has grown to a $2.1 billion industry that employs 39,000 people and attracts over 7 million visitors to the First State each year,” stated Alan Levin, Director of the Delaware Economic Development Office. “If the tourism industry can achieve sustainable growth during challenging economic times, just imagine the potential that the future holds.”

“In 2010, tourism generated $400 million in state and local government taxes and fees,” said Linda Parkowski, Director of Tourism, Delaware Tourism Office. “Each Delaware household would pay $114 more in taxes each year to maintain current levels of state and local taxes without the benefit of tourism in the First State.”
The Delaware Tourism Office, 99 Kings Highway in Dover, DE, a division of the Delaware Economic Development Office, promotes tourism and economic growth in Delaware. For more information, visit the official Delaware Tourism website at www.visitdelaware.com or call toll-free (866) 284-7483.

2010 FACTS: VALUE OF TOURISM IN DELAWARE

• Tourism’s total contribution to Delaware’s 2010 Gross Domestic Product (GDP), the total market value of goods and services produced by the State’s economy, is $2.1 billion.
• Delaware’s 2010 Gross State Product (GSP) grew at roughly half the rate of Delaware Tourism.
• The Delaware tourism industry is the third largest private employer in the state, employing 39,000 people.
• In 2010, more than 7 million people visited Delaware.
• A total of 1.5 million people traveled to Delaware on business and 5.6 million traveled for leisure.
• Tourism generated $400 million in state and local government taxes/fees in 2010.
• Delaware state and local tourism tax revenue grew at nearly twice the rate of overall state tax receipts in 2010.
• Without tourism in Delaware, each Delaware household would pay $114 more in taxes to maintain current levels of state and local taxes.
• The average visitor spent $545 per trip in 2010.
• About $98 per visitor represents tax receipts.
• The top 2010 spending categories and visitor activities were shopping and dining.
• On average, the typical 2010 visitor to Delaware was 47 years of age with a household income of $94,322 which was higher than the national average.
• The top 2010 markets of origin included surrounding metropolitan areas in the Mid-Atlantic region.
• The top 2010 origin states included states along the East Coast with a concentration in the Mid-Atlantic region and as far away as upstate New York and the State of Florida.
• Seasonal homes increased 40% from 2000-2010 and account for over 28.3% of all housing units in Sussex County.
• Had seasonal home rental spending been subject to Delaware’s Public Accommodation Tax, an additional $72 million in state revenue would have been generated in one year.

Resources: D.K. Shifflet & Associates Ltd and Vantage Strategy. For a full study report, visit www.visitdelaware.com/about-us/tourism-statistics/.