Committee of Private Sector and Public Sector Leaders to Review State Spending and Identify Opportunities for Savings 

Wilmington, DE – Governor Jack Markell announced today the signing of Executive Order No. 52, creating the Delaware Expenditure Review Committee. Led by Fred Sears of the Delaware Community Foundation, the Committee will review state government for opportunities to create efficiencies and provide services in a more cost-effective manner. The Committee, comprised of private sector appointees from the Governor and all four caucuses of the General Assembly, brings together representatives of the business community, unions, government and the non-profit sector.

“Delaware’s revenue sources don’t grow with our economy, so even as our state’s economy has improved, we face tremendous budget challenges,” said Governor Markell. “We must do everything we can to deliver the most value to Delawareans at a reasonable cost and the committee I’m creating today builds on six years of work to make government more efficient in providing high quality services to our citizens. The results so far have produced the least amount of budget growth during any administration – Republican or Democrat – in modern history. We must remain open to evaluating new ideas and look forward to partnering with the private sector to continue this effort.”

When accounting for inflation and population growth, the state budget has shrunk by an average of 0.58 percent per year during the Markell Administration, representing significantly less growth in spending than any prior administration in the last 30 years. That success in containing costs during a time of high demand for government services is the result of a wide range of efforts since 2009, from the Government Performance Review that generated $35 million in savings opportunities that year to additional savings through energy efficiency gains, attrition in cabinet-level agencies, pension reform, and more.

The Committee established by E.O. 52 provides an additional opportunity at an important time to fully examine other ideas to increase efficiency. This initiative complements the work of the DEFAC Advisory Council on revenues, which put together options for the state to raise revenue in a way that better reflects Delaware’s economic progress.

“This is a unique opportunity to bring together private and public sector leaders to take a look at how the State may be able to find savings,” said Fred Sears, Chairperson of the Committee.  “This is not going to be easy, but I think the Governor and legislative leaders have appointed a good team that is prepared to go to work.”

“The JFC has made it a top priority to examine our budget for areas where we can save the taxpayers money while improving outcomes for everyone who relies on government services,” said Rep. Melanie Smith.  “The JFC welcomes the input, time and ideas of our friends and colleagues in the private sector, and looks forward to working together.”

“The Joint Finance Committee has one of the most difficult jobs in state government – making sure that we pass a balanced budget that reflects our values,” said Sen. Harris McDowell. “Every year, we come through on that, but it isn’t getting any easier. We face difficult decision to meet the needs of Delawareans and hopefully this group can help us with those.”

“This Committee is a worthwhile endeavor and the State Chamber looks forward to working with the Administration and legislature on the Committee’s recommendations,” said State Chamber of Commerce President A. Richard Heffron.

The Committee – a bipartisan group of government and private sector leaders – includes:

• Chairman Fred Sears – Delaware Community Foundation, appointed by the Speaker of the House and designated as Chairperson by the Co-Chairs of JFC
• Fred Cottrell – Richards, Layton & Finger, appointed by the Senate Minority Leader
• Rick Gessner – Capital One, representing the Delaware State Chamber of Commerce
• Dennis Greenhouse – Former County Executive and State Auditor
• The Hon. Joshua Martin – Chairperson of DEFAC; Potter Anderson & Corroon LLP
• Robert McMurray – Christiana Care Health System, representing the Delaware Business Roundtable
• Mike Morton – Controller General
• Ed Ratledge – Chairperson of DEFAC’s Subcommittee on Expenditures; University of Delaware
• Jack Riddle – Community Bank, appointed by the House Minority Leader
• Jeff Taschner – DSEA, appointed by the Senate President Pro Tempore
• Ann Visalli – Director of the Office of Management and Budget
• Lincoln Willis – Former State Representative; Willis Chevrolet

The text of the Executive Order follows:

EXECUTIVE ORDER

NUMBER FIFTY-TWO

TO:      HEADS OF ALL STATE DEPARTMENTS AND AGENCIES

RE:      DELAWARE EXPENDITURE REVIEW COMMITTEE

WHEREAS, the Delaware Economic & Financial Council (DEFAC) Advisory Council on Revenues has examined the State of Delaware’s revenue portfolio and determined that more than half of Delaware’s revenue sources do not grow in proportion to the overall economy;

WHEREAS, as a result of the lack of growth among major revenue categories, total state revenues in FY 2016 are estimated to be less than FY 2015;

WHEREAS, the General Assembly and the administration have managed the State’s budget responsibly, with budgets that are balanced every year and budget growth that is only 2.3% annually during the Markell administration and that is actually negative 0.58% if adjusted for inflation and population growth during that time;

WHEREAS, the Markell administration has eliminated more than 1,000 state positions between FY 2009 and FY 2016, reduced overall head count by more than 600 employees, reduced energy costs, enacted state employee health and pension reform, reduced fleet costs, and implemented savings programs in Medicaid, Long-Term Care, and many other programs;

WHEREAS, as a result of these efforts and other budget savings, the Delaware state budget has grown less during the Markell administration than any other administration in a generation or more;

WHEREAS, even with well-managed budgets, the absence of robust revenue growth that tracks Delaware’s economy and the State of Delaware’s expenses creates an anticipated budget deficit of more than $100 million in FY 2017, and that deficit has the potential to grow as expenses continue to climb and revenue sources do not keep up;

WHEREAS, the Delaware General Assembly and Joint Finance Committee are interested in identifying opportunities for savings in the state budget and have begun efforts to identify savings through reviews by the Pew Charitable Foundation and attempts to identify savings in programs like Medicaid;

WHEREAS, the Governor and the General Assembly are committed to responsible management and administration of the state’s budget, including identifying opportunities for achieving better savings for taxpayers;

WHEREAS, a comprehensive review of state spending can identify opportunities to achieve savings in a manner that allows for the continued provision of effective service to Delawareans, particularly those who depend on government services in times of need.

NOW, THEREFORE I, JACK A. MARKELL, by virtue of the authority vested in me as Governor of the State of Delaware, do hereby DECLARE and ORDER that:

1. The Delaware Expenditure Review Committee is hereby created.
2. The Committee shall be comprised of twelve members.  The Committee shall be comprised of the Chairperson of DEFAC, the Chairperson of DEFAC’s Subcommittee on Expenditures, the Controller General or his designee, the Director of the Office of Management and Budget or her designee, one person appointed by the President Pro Tempore of the Senate, one person appointed by the Speaker of the House, one person appointed by the Minority Leader of the Senate, one person appointed by the Minority Leader of the House, and four public members appointed by the Governor.  The Co-Chairpersons of the General Assembly’s Joint Finance Committee shall designate a member from among those appointed to serve as chairperson of the Committee.
3. Members of the Committee shall receive no compensation, but shall be reimbursed for customary and usual expenses incurred in the performance of their duties.  The Committee shall act by majority vote and may adopt public procedures and standards for the conduct of its affairs, consistent with this Order.  A quorum of the Committee shall consist of a majority of members.
4. The Committee is tasked with a review of state government services to evaluate whether there are opportunities to provide government services in a manner that is more efficient, more effective, or can be performed at less cost to taxpayers.  The Committee shall review any such proposals in a manner that gives consideration to both the overall cost savings that might be obtained and the positive and negative effects of those savings on the provision of services.
5. The Committee is authorized to call upon volunteer assistance from its membership or other interested parties, and may retain such advisors or consultants as appropriate to assist its work.  The compensation of any advisor or consultants shall be approved jointly by the Office of Management and Budget and Controller General.
6. On or before January 29, 2016, the Committee shall report to the Governor and the Joint Finance Committee of the General Assembly any findings and any recommendations for the State of Delaware’s operations or budget.
7. The Office of Management and Budget and Controller General’s Office shall provide staff support to assist the Committee in performing its duties and shall, upon request, provide the Committee with reports and data helpful to the Committee’s ability to perform its assigned duties.  All executive branch state agencies and departments shall cooperate with the Committee when requested.
8. The Delaware Expenditure Review Committee shall be terminated on June 30, 2016, if not reconstituted by further executive order.

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Newport, DE – In his weekly message, filmed at Richey Elementary School , Governor Markell discusses the progress made in Delaware to ensure student safety in public schools through the implementation of comprehensive school safety plans.

“Our children and educators spend more than a third of their time in schools – time that is critical to ensuring our young people have the best chance to reach their potential,” said Governor Markell. “We all want to provide a safe and secure learning environment for our children and we have a sacred responsibility to be ready to respond when anything threatens it. By ensuring our schools are as prepared as possible for any circumstance, we will allow our school staff, teachers and students to remain focused on learning and educating, and that will keep Delaware moving forward.”
Every week, the Governor’s office releases a new Weekly Message in video, audio, and transcript form. The message is available on:

YouTube: https://youtu.be/7_Bq0amf6Yw
Delaware.Gov: http://governor.delaware.gov/podcast_video.shtml
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Transcript of Governor’s Weekly Message: Promoting Effective Learning by Ensuring School Safety

Solicits camera suppliers to participate in trial evaluation of the use of cameras to enhance public safety

Wilmington, DE – Following an extensive evaluation by the Department of Safety and Homeland Security (DSHS) of the benefits and challenges of effectively implementing body cameras on law enforcement officers, Governor Markell and DSHS Secretary Lew Schiliro today announced plans for State and Municipal police officers to participate in a 30-45 day trial, using about a dozen body cameras throughout the state. The State has released a Request for Information (RFI) that asks camera manufacturers to submit proposals for how they would supply the state’s needs to execute the pilot.

The pilot program follows a meeting between the Governor, Secretary Schiliro, Colonel McQueen, and representatives of the NAACP late last year, when participants agreed use of these cameras would be an inevitable and a positive step to support both law enforcement activities and the rights of Delaware citizens. However, they also emphasized the need to address a number of complex privacy, procedural, and technical issues to ensure successful deployment of the cameras.

“I am convinced that effective use of body cameras can both help police officers protect our citizens while strengthening trust between law enforcement and all of the communities they serve,” said Governor Markell. “I thank Secretary Schiliro and everyone involved for all of their work that has brought us to this point and look forward to what the results of the pilot program will tell us about the best path forward for wide use of these cameras in Delaware.”

“It is my hope that in working with all law enforcement partners that we will be able to develop and implement a consistent statewide policy for the utilization, storage, and management of police body cameras,” said Schiliro. “Uniformity will greatly enhance the objective of this program to ensure the safety of our officers and the public we serve. Being able to conduct a statewide pilot program in Delaware will greatly improve the development of the technology and policy needed to be successful in the deployment of body worn cameras.”

“The Delaware State NAACP is excited about the pilot program initiated by Governor Markell,” said state NAACP president Richard “Mouse” Smith. “We are in agreement this is a necessary addition to our police departments for the protection of the police departments and the community. We are excited to hear the findings following the trial period. With possible funding from our legislature and Homeland Security, we will have grant funding to assist the police agencies throughout Delaware. We are looking forward to continuing the working relationship between the NAACP, the Governor’s Office, Homeland Security and the Delaware Police Departments in this endeavor because all lives matter to us.”

For the pilot, companies will be asked to provide 12 units to be deployed at the direction of DSHS as a part of the trial period for evaluation. This approach will allow the State to determine how best to craft requirements related to the procurement of body cameras and associated support equipment and services.

They must provide:

• Cameras capable of capturing real time activities of a law enforcement official that is worn on the enforcement official
• A system capable of retaining the images of real time activities captured by the body camera.
• An information technology platform allowing for storage of a data record in a manner that does not require the State of Delaware to dedicate brick and mortar square footage to the retention of a data record.

The system must have cloud-based storage and be capable of providing coverage for the entire State, including law enforcement officials at the State, County, and City / Town levels.

“Conducting a body-worn camera pilot project will provide Delaware State Police with a great opportunity to evaluate the impact of body-worn cameras on Troopers and on the community,” said Col. Nate McQueen, head of the Delaware State Police. “It will also provide an excellent opportunity to evaluate the different types of technology, evidence management, data storage available and to finalize a uniformed body-worn camera policy. The pilot program will also enable Delaware state Police to determine how best to implement a permanent body-worn camera program.”

Chief William Bryson, Chairman of the Delaware Police Chiefs Council said he believes body cameras will be standard equipment for law enforcement officers in the foreseeable future.

“The financial commitment required to implement a comprehensive body camera program is currently beyond the reach of many police departments’ budgets,” he said. “Although, several departments in Delaware have introduced body cameras into their agencies including; Ocean View Police Department, Smyrna Police Department and the New Castle County Police Department. The Delaware Police Chiefs Council has been working with the Department of Safety and Homeland Security, the Attorney General’s Office, the Delaware State Troopers Association and the Fraternal Order of Police to establish a statewide body camera policy. A review of this program will provide valuable information for the implementation of the equipment and finalization of the policy.”

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Red Clay School Officials Join Governor to Celebrate School Safety Milestone

Newport, DE – Having worked with the General Assembly to make school safety improvements a top priority of the state, Governor Jack Markell recognized 2015-2016 as the first school year in which every Delaware public school is using a comprehensive safety plan to prepare for potential emergency situations, ranging from armed intruders to natural disasters.

Joined by Richey Elementary School principal Dotty Johnson, Red Clay School District Superintendent Merv Daugherty, Red Clay Public Safety Director Brian Moore, and Delaware Capitol Police Chief John Horsman, the Governor also highlighted new infrastructure upgrades made to enhance safety at Richey Elementary School. In 2012, Governor Markell signed the Omnibus School Safety Act, making Delaware the first state in the country to establish a formal statewide framework for comprehensive school safety plans, which brings all public schools under one common safety protocol.

“We all want to provide a safe and secure learning environment for our children and we have a sacred responsibility to be ready to respond when anything threatens it,” Governor Jack Markell said. “The advances made by our schools over the past few years means they are better prepared than ever before for a wide range of emergency scenarios.”

Superintendent Daugherty, Director Moore and Principal Johnson all touted the benefits of the school safety planning program and emphasized the importance of the safety initiatives implemented in district schools. At Richey Elementary, door locks and perimeter cameras were installed. The school also reconfigured its lobby to prevent direct entry into the school. All visitors are now directed into the school main office to gain access to the school interior. In addition, Red Clay has assigned a School Resource Officer or Constable to each of its schools.

“Red Clay parents trust us to keep their students safe and the tools provided through the Comprehensive School Safety Planning (CSSP) program are helping us do just that.” Daugherty said. “Having a comprehensive school safety plan that addresses various emergencies allows school officials to start the year focusing on what’s most important—educating its students.”

The Delaware Department of Safety and Homeland Security (DSHS) Capitol Police is charged with overseeing statewide comprehensive school safety planning. In 2012, DSHS implemented the Emergency Response Information Portal (ERIP), a web-based solution that serves as a central repository for all Delaware public and charter school safety plans. ERIP not only provides the tools and technology to help schools with the school safety planning process, but also contains numerous other school safety resources including threat assessments and online video courses.

In the past school year, CSSP Director Wendy Hudson worked with the school districts to make certain its schools met the State standards outlined in the Omnibus School Safety Act. Last fall Governor Markell strengthened this Act, accelerating the timetable for compliance and requiring all public and charter schools to complete two intruder drills and one tabletop exercise annually in addition to its school safety plan.

“The Red Clay School District and administrators like Mrs. Johnson, who are committed to the school safety planning process, make our work easier. They have embraced school safety from the start and remained vigilant,” Chief Horsman said. “Our children spend the majority of their day in school and it is imperative we work with administrators and provide them the tools needed to ensure the safety our students.”

As the school safety planning program continues to thrive, the next phase Red Clay started was making sure the first responders can have easier access to critical information before and during an incident.

“In Red Clay we have already begun a trial initiative with our colleagues at the State Police Troop 6, creating accounts for every trooper in the area so that they can have access to these fantastic tools as well,” Moore said.  “In reality anytime there is an emergency the school district cannot respond in a silo, but the entire emergency response community has to work together to insure the safety of the school and students.”

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Governor will meet with business and government leaders in Munich and Berlin to strengthen economic ties

Wilmington, DE – Having made it a top priority to ensure Delaware fully benefits from the global economy, Governor Markell will be in Germany beginning next Tuesday to strengthen relationships with German companies and business organizations.

The visit follows this year’s launch of the Department of State’s ‘Global Delaware’ initiative  (global.delaware.gov) and focuses on the three goals of the program: paving the way for Delaware companies to increase exports, building on Delaware’s global leadership in corporate governance and as a preferred site of incorporation, and promoting the state as a place for foreign companies to expand.

“Success for our state in the 21^st century means looking beyond our borders for ways to create jobs and economic opportunity for Delawareans,” said Markell. “In a world where businesses have more choices than ever about where to invest and where Delaware companies have more opportunities than ever to sell their products around the globe, we must ensure that leading international business communities appreciate all that Delaware has to offer.”

The primary goal of the mission is to strengthen ties with the prospering small- and medium-sized companies (known as “Mittelstand”) of Bavaria, and its capital city of Munich, by meeting with individual businesses as well as organizations that represent and support them. The State aims to leverage its recently strengthened relationship with German companies, including the research company Fraunhofer and the manufacturer Uzin Utz, which will soon open its first U.S. plant in Dover.

“As a German company that has found Delaware to be a great place to do business, we are excited that the Governor is making this trip not only to our home country, but specifically to build relationships in the South of Germany,” said Philipp Utz, President of Uzin Utz Manufacturing North America Inc., a manufacturer of specialty flooring installation products. “Delaware has a lot to be proud of, with a growing business community, a state-of-the-art infrastructure and the ability to offer a skilled workforce. It will be of great benefit to many other German entrepreneurs to learn about the state and Delaware companies will also have a lot to gain from better ties with Germany’s economy.”

As part of Governor Markell’s new export initiative, he will work to develop a network of trade partners for Delaware companies to build on recent success. Germany was one of four key international markets identified as part of the initiative, which focuses on countries with the most buying potential for the products and services that Delaware has to offer.

Delaware exports to Germany have grown by 28.8 percent in the last 2 years. In 2014, Delaware exported $390.4 million in goods and services to Germany. The German economy represents the world’s fourth largest, accounting for more than one-fifth of the European Union’s GDP, and Germany is the United States’ largest European trading partner, as well as the sixth-largest market for U.S. exports.

The Governor will also take advantage of the opportunity to meet with prominent leaders of Germany’s legal community to promote the advantages of forming Delaware business entities and using Delaware’s courts for dispute resolution. Significant international growth has been a chief reason that Delaware set historic highs in the number of new companies formed last year.

Finally, the Governor will discuss opportunities to increase foreign direct investment (FDI) by Germany in Delaware. Germany invests more than $270 billion per year in the U.S., making it one of the leading sources for FDI. Germany invests the fourth-most of any country in Delaware, investing more than $270 million per year as of 2013.

In addition to connecting with individual companies and entrepreneurs across a variety of industries, Markell will meet with leaders from:

• IHK’s Munich and Upper Bavaria chapter, with about 400,000 member companies;
• The Bavarian Industry Association, which represents more than 100 Bavarian economic and employers’ associations, as well as 30 individual companies from diverse industries;
• BioM, the networking agency for the biotechnology sector in Munich and Bavaria; and
• Factory Berlin, Germany’s largest start-up campus, which supports many thriving new companies, particularly in technology fields.

The State delegation, which arrives in Munich on Tuesday and returns the following Monday, will also include:

• Ian Wright, Board Member of the Delaware Bioscience Association who is a German-speaking former employee of Siemens (headquartered in Munich) and an active member of the Delaware business community;
• Lydia Sarson, Director of the German American Chamber of Commerce in Philadelphia;
• Andrea Tinianow, Director of Global Delaware; and
• Michael Marquardt, global advisor to the Department of State

The trip is estimated to cost less than $50,000 and will be the first foreign trade mission in which the Governor is participating since he visited Israel two years ago.

The launch of Global Delaware provides an opportunity to expand on progress from the Governor’s earlier international efforts and has already produced results. The program helped recruit AB Group Packaging Inc., a 30-year-old paper bag and flexible packaging producer with plants in Ireland, Spain and the United Kingdom, which is slated to open its first U.S. plant in Delaware this summer, creating 87 new full-time jobs.

In addition, Global Delaware sponsored a mission to Canada so that Delaware farmers could meet with senior purchasing executives of Canada’s four largest retail chains, giving them unprecedented access to key buyers. The Canadian retailers – none of which had bought from Delaware before – all made commitments to purchase produce from Delaware growers.

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