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> Delaware Public Forums > State of Delaware Public Issues Forum > Markell to unveil budget -- Plan must address $750M shortfall

Markell to unveil budget -- Plan must address $750M shortfall
 
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 Posted: Wed Apr 1st, 2009 08:38 pm
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tspong wrote: Copied below is a letter to the editor submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

 If he is doing so good why won't he tell how much the state brings in each month and from where and how much it spends and where it is spent he lies just like OBAMA and all the rest of the GOVERNMENT


I am writing in support of Gov. Markell’s budget plan. I volunteered for nine months on the Markell campaign and observed the most thoughtful, respectful and intelligent candidate who looked toward Delaware’s future. Jack had a vision for Delaware from the very beginning. With these economic times, Jack has now had to also make tough choices.



The budget plan is closing in on the largest shortfall in Delaware history. It does so by making hard decisions that affect many Delawareans. I trust my Governor to make those hard decisions. It is one of the many reasons that I worked on the Markell campaign and voted for him. I believe that he can make those tough decisions, not alone, but by working with every one in his administration and Delawareans throughout the state. He is always willing to listen to suggestions and ideas. We must support our Governor in these hard times.



Elyse M. Reznick



Greenville


teach22
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 Posted: Wed Apr 1st, 2009 08:19 pm
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The pictures of the flowers in Dover were beautiful in the newspaper but several people have told me that it costs the state over a million dollars to maintain them.  If this is true then something needs to be done to cut down the cost.

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 Posted: Tue Mar 31st, 2009 08:14 pm
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Copied below is a guest commentary submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

 

By Jeff L. Jones

 

When I read about Gov. Markell’s budget in the March 20th issue, I knew it was going to make for some interesting reading in the following weeks. I would like to take the opportunity to point out a few things which I have not heard mentioned, and the general public may not be aware of.

Let’s begin with a little history. The governor mentions that the gross receipts tax will be increased. For those of you who are unaware, this unfair tax is paid for with money that has already been taxed. I’m sure any business owner will be glad to explain this to you. Just be prepared to wait until their blood pressure returns to a normal level before they answer.

Oh, and by the way, state employees, the gross receipts tax was just “temporary” when it was first introduced, much like the “temporary” pay cuts you are being asked to endure. My wife is a teacher – I feel your pain.

Moving on, most people are probably unaware that almost all state construction projects are now being designed to meet LEED standards. For those that don’t know, LEED stands for Leadership in Energy and Environmental Design, and is brought to us by our friends in California. Don’t get me wrong; there are advantages to this program, but they come at a hefty price to the taxpayer.

I am a project manager for a small commercial construction company, and with the additional paperwork, mandatory recycling requirements, limited material availability and required certifications, you can expect a cost increase of about 20 percent over and above what a project would normally cost.

Another construction related item which could be discussed would be the prevailing wages which we are required to pay our workers on state funded construction projects. Again, don’t get me wrong. I have family and friends who are union members, but let’s be realistic. Currently, the rate for a laborer is $33.10 per hour, which is almost 70K per year. To better illustrate the impact this has on a job, I recently prepared a quote for a small design-build project for the government. Due to its location, I was initially advised that it did not have to comply with the government wage rates. Come to find out, it did, and the result was an increase of 35 percent over our original quote.

Our governor states that he is spreading the pain, but I have not noticed any proposed changes in the prevailing wages, and I don’t think I will. When you have a state construction project that requires prevailing wages and was designed to meet LEED standards, it adds up rather quickly, doesn’t it? Union workers provide a quality product, but all contractors, union and non-union alike, are all held to the same standards during the construction process.

I’m sure that none of the above received any real consideration, and if so, it was quickly swept under the rug for obvious reasons. The gross receipts tax is a cash cow for Delaware, so it’s here to stay. In addition, it’s my guess that it will be years before any state worker sees a return to their normal salary, if it happens at all. Something else will “come up,” and it will be continually pushed back until it’s hopefully forgotten. Without being overly political, green requirements and labor unions tend to have close ties to the Democratic party, so trying to limit either of these could be detrimental to Governor Markell’s political future.

I could go on, but I think I’ll grab my wheelbarrow and shovel and look for a new job instead.

 

Editor’s note: Jeff L. Jones resides in Dover.

 

Filly
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 Posted: Tue Mar 31st, 2009 07:45 pm
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I’m a registered Democrat who votes in every election.  I also will not vote for anyone who supports the 10 % plus pay cut for educators. This family makes under $60,000 and we have been frugal to make our finances work.  We chose to be an education family to be a part of the solution for America rather than sideline complainers.  We have already made a financial sacrifice for our state and country for our college debts.   This pay cut will now jeopardize our ability to pay basic bills like housing and electricity.  I have written to all of my legislators regarding this issue because it will affect our family in a very real and personal way.   As of this writing, Senator Bonini is the only one who has taken the time to reply-twice!  The party and state that produced the new head of a Middle Class Task Force for America has so far turned a deaf ear on the very people they champion over and over during election season.  Is it true that the Governor exempted his advisors and judges from the pay cuts?  I’m writing this at 7:30 PM as my spouse who left for work at 7:00 AM this morning is still at school making a difference for all of our children. At 35, we want to be able to raise one child of our own now and did financially plan for that.  A pat on the back is wonderful, but paying the mortgage really would be better right now!

Filly
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 Posted: Tue Mar 31st, 2009 07:44 pm
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Response:  Donald Miller's DE State News letter 3/31

I’m a registered Democrat who votes in every election.  I also will not vote for anyone who supports the 10 % plus pay cut for educators. This family makes under $60,000 and we have been frugal to make our finances work.  We chose to be an education family to be a part of the solution for America rather than sideline complainers.  We have already made a financial sacrifice for our state and country for our college debts.   This pay cut will now jeopardize our ability to pay basic bills like housing and electricity.  I have written to all of my legislators regarding this issue because it will affect our family in a very real and personal way.   As of this writing, Senator Bonini is the only one who has taken the time to reply-twice!  The party and state that produced the new head of a Middle Class Task Force for America has so far turned a deaf ear on the very people they champion over and over during election season.  Is it true that the Governor exempted his advisors and judges from the pay cuts?  I’m writing this at 7:30 PM as my spouse who left for work at 7:00 AM this morning is still at school making a difference for all of our children. At 35, we want to be able to raise one child of our own now and did financially plan for that.  A pat on the back is wonderful, but paying the mortgage really would be better right now!

Filly
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 Posted: Tue Mar 31st, 2009 07:43 pm
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Response:  Donald Miller's letter in DE State News 3/31

I’m a registered Democrat who votes in every election.  I also will not vote for anyone who supports the 10 % plus pay cut for educators. This family makes under $60,000 and we have been frugal to make our finances work.  We chose to be an education family to be a part of the solution for America rather than sideline complainers.  We have already made a financial sacrifice for our state and country for our college debts.   This pay cut will now jeopardize our ability to pay basic bills like housing and electricity.  I have written to all of my legislators regarding this issue because it will affect our family in a very real and personal way.   As of this writing, Senator Bonini is the only one who has taken the time to reply-twice!  The party and state that produced the new head of a Middle Class Task Force for America has so far turned a deaf ear on the very people they champion over and over during election season.  Is it true that the Governor exempted his advisors and judges from the pay cuts?  I’m writing this at 7:30 PM as my spouse who left for work at 7:00 AM this morning is still at school making a difference for all of our children. At 35, we want to be able to raise one child of our own now and did financially plan for that.  A pat on the back is wonderful, but paying the mortgage really would be better right now!

Milfordian II
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 Posted: Tue Mar 31st, 2009 12:46 am
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cut the 63 legislators salaries by 10% that make up the Delaware general assembly that will shrink the gap by $250,000.

taxpayertoo
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 Posted: Tue Mar 31st, 2009 12:15 am
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It's hard to support the Governor's plan when a person working for the state doesn't make enough to support their family.  And the Governor expects that person to have their pay cut 8-10%.  People are going to lose hope if the Governor and Legislators don't come up with a common sense plan.

Hartlyboy
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 Posted: Mon Mar 30th, 2009 11:18 pm
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Playing the Game wrote: How unusual, a resident of Greenville who supports everrything the Democrats do.  I'll bet she is enamoured with the Biden's too.
There are silly people in Greenville, too.

Playing the Game
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 Posted: Mon Mar 30th, 2009 10:47 pm
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How unusual, a resident of Greenville who supports everrything the Democrats do.  I'll bet she is enamoured with the Biden's too.

tspong
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 Posted: Mon Mar 30th, 2009 09:31 pm
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Copied below is a letter to the editor submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

 

I am writing in support of Gov. Markell’s budget plan. I volunteered for nine months on the Markell campaign and observed the most thoughtful, respectful and intelligent candidate who looked toward Delaware’s future. Jack had a vision for Delaware from the very beginning. With these economic times, Jack has now had to also make tough choices.


The budget plan is closing in on the largest shortfall in Delaware history. It does so by making hard decisions that affect many Delawareans. I trust my Governor to make those hard decisions. It is one of the many reasons that I worked on the Markell campaign and voted for him. I believe that he can make those tough decisions, not alone, but by working with every one in his administration and Delawareans throughout the state. He is always willing to listen to suggestions and ideas. We must support our Governor in these hard times.


Elyse M. Reznick


Greenville

tspong
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 Posted: Mon Mar 30th, 2009 09:30 pm
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Copied below is a letter to the editor submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

 

I am writing in support of Gov. Markell’s budget plan. I volunteered for nine months on the Markell campaign and observed the most thoughtful, respectful and intelligent candidate who looked toward Delaware’s future. Jack had a vision for Delaware from the very beginning. With these economic times, Jack has now had to also make tough choices.


The budget plan is closing in on the largest shortfall in Delaware history. It does so by making hard decisions that affect many Delawareans. I trust my Governor to make those hard decisions. It is one of the many reasons that I worked on the Markell campaign and voted for him. I believe that he can make those tough decisions, not alone, but by working with every one in his administration and Delawareans throughout the state. He is always willing to listen to suggestions and ideas. We must support our Governor in these hard times.


Elyse M. Reznick


Greenville

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 Posted: Mon Mar 30th, 2009 12:32 pm
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How can we find out how much money the state pulls in every month and what it is spent on if we knew that we the tax payers could balance the budget. Our government is to big and we need to chop it down they are spending money on things we don't need and don't want. The federal government just raised taxes on the cigarettes and booze and now the state wants to add more if they want more money why can't they get jobs in delaware for non state workers. They use out of state people to do the job that we have people here that they can do just like cutting grass I would like to have that one. The people are getting tired of all the spending the government does on their little pet projects then they want to tax us because they spent to much. The main question here is where the money is being spent line by line not double talk  and how much comes in.

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 Posted: Mon Mar 30th, 2009 05:06 am
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How many of you are from out of state and have only lived in Delaware for a few years.  That housing boom that I took advantage of saved me thousands of dollars a year in taxes.  Anyone who came here from New Jersey, Pennsylvania, or New York, like me, you could always go back home.   

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 Posted: Mon Mar 30th, 2009 01:18 am
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God Bless Ruth Ann and Tom Carper and the Democrat party, may they rot in HE double Hockey Sticks.  From there they can burn in hell.

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 Posted: Mon Mar 30th, 2009 12:59 am
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taxpayertoo wrote: Perhaps the State should never have given up any of the realty transfer taxes.  What did the county and towns do with all the money they received during the housing boom?  The county decided it needed two more parks for a total of 4, some towns decided they needed full time mayors, managers, police forces or bigger police forces, etc.  They all spent it as fast as they got it.  Now the money dried up and everyone is scrambling to find a way to pay for the things the realty transfer tax paid for.  perhaps the State should have kept it in a contingency fund for days like these.  So now the State employee is expected to pay for the mismanagement of funds...pretty sad.
Perhaps the state and counties and towns should have read the book that tells them that residential development never pays for itself. The taxes required to support houses are about $1.25 for every tax dollar collected. That's why balanced development is so vital. Giving all the free rein to the housing developers and land speculators just put us in a hole that it will take a long time to climb out of or will put us in the same tax hellhole that the people from NJ and PA are fleeing. The same greed is in play here that we saw on Wall Street with the mortgage bankers.

taxpayertoo
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 Posted: Mon Mar 30th, 2009 12:46 am
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Perhaps the State should never have given up any of the realty transfer taxes.  What did the county and towns do with all the money they received during the housing boom?  The county decided it needed two more parks for a total of 4, some towns decided they needed full time mayors, managers, police forces or bigger police forces, etc.  They all spent it as fast as they got it.  Now the money dried up and everyone is scrambling to find a way to pay for the things the realty transfer tax paid for.  perhaps the State should have kept it in a contingency fund for days like these.  So now the State employee is expected to pay for the mismanagement of funds...pretty sad.

dover-diva
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 Posted: Sat Mar 28th, 2009 12:36 am
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dixieboo2 wrote: Mr. Beveridge,

 Perhaps you might want to check out the Manufactured Homeowners Relocation Trust Authority website before you start slinging your arrows at them.  The RTA is composed of a non-compensated board appointed by the Govenor to administer the funds collected from the residents of manufactured home communities and the "owners" of said communities each month.  The funds are used to help relocate residents if communities close or change land use.  The RTA does not receive any financial assistance from the government, is not supported financially by the government but pays it's own salaries and it's own utilities and it's own rent through it's own source of revenue, the people it helps protect.  The RTA exists because it was inlcuded in Chapter 70 of the Landlord- tenant policies created because of the abuses heaped upon homeowners on leased land.  You appear to be another person who simply is not aware of what he is talking about with regard to these issues.  Getting rid of the RTA as you suggested, would add ZERO dollars to the State coffers.  Next time, do some research before you sling your mis-directed arrows. It would be better received.  D. Boucher, a manufactured homeowner in Lewes :?
Oh, he's aware. Mr. Beveridge's attitude is "why would anyone actually buy a home on leased land." A very elitist attitude!! DE. is NOT a home owner friendly state, esp. land-leased home owners.

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 Posted: Fri Mar 27th, 2009 08:10 pm
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Mr. Beveridge,

 Perhaps you might want to check out the Manufactured Homeowners Relocation Trust Authority website before you start slinging your arrows at them.  The RTA is composed of a non-compensated board appointed by the Govenor to administer the funds collected from the residents of manufactured home communities and the "owners" of said communities each month.  The funds are used to help relocate residents if communities close or change land use.  The RTA does not receive any financial assistance from the government, is not supported financially by the government but pays it's own salaries and it's own utilities and it's own rent through it's own source of revenue, the people it helps protect.  The RTA exists because it was inlcuded in Chapter 70 of the Landlord- tenant policies created because of the abuses heaped upon homeowners on leased land.  You appear to be another person who simply is not aware of what he is talking about with regard to these issues.  Getting rid of the RTA as you suggested, would add ZERO dollars to the State coffers.  Next time, do some research before you sling your mis-directed arrows. It would be better received.  D. Boucher, a manufactured homeowner in Lewes :?

Last edited on Fri Mar 27th, 2009 08:24 pm by dixieboo2

tspong
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 Posted: Fri Mar 27th, 2009 06:41 pm
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Copied below is a letter to the editor submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

 

Let me begin by saying that Governor Markell, you are wrong. It astounds me that you believe cutting 8% of state employees salaries will solve Delaware’s economic crisis. You claim that this will share the burden equally and prevent people from losing their jobs. Yet, as a teacher, I am still not assured of this as my district controls my job. Any district in the state for that matter could still cut employees. Your proposal will not help this state. In fact, it will in all likelihood do more damage than good. Your plan will negatively effect all state departments. What will become of the quality of education in Delaware? What will become of our police force, our transportation department and so on? Employees will be overworked, underpaid, and above all frustrated as they struggle to make ends meet. Some of us who are already struggling to pay our mortgages will in all likelihood be forced to give up our homes or find second jobs. These systems will fall to pieces and our children and future of the state will suffer the most.


Second, this plan will only further hurt our economy. If you cut our state employees salaries by 8% then you are leaving them with less income to spend. The largest part of that income will be spent on paying bills and making ends meet. Which means that there will be less spending. This will have a domino effect as people spend less, businesses continue to close and our economy continues its downward spiral. I ask again, how can you believe that this plan is a solution?


Finally, many people voted for you because you promised reform and change for the state. I think I can speak for many when I say that this is not the reform and change we were hoping for. This plan is unfair and places and unfair burden on those that the state depends on the most. If you truly want to share the burden, then find a way to make every person in the state help alleviate this deficit. Institute a sales tax for the state. This way everyone will pay a part of the deficit. Asking only state employees to shoulder this burden is wrong. It is not our fault that the state is in the situation we are in. It is the fault of years of misspending and poor planning. Passing it off on state employees simply because we work for the state is an injustice that none of us should stand for.


This plan is wrong and will not help the state. Governor Markell, give us the leadership that you promised and find a better way.


Justin Malin


Smyrna

Hartlyboy
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 Posted: Thu Mar 26th, 2009 04:31 pm
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taxpayertoo wrote: This is still the best country in the world to live in - but it isn't free.  Exchanging an income tax for a sales tax just makes things fair.
Maybe, except what you'd get is a sales tax AND an income tax. Remember you are dealing with the Democrats who have tripled the state's budget in 10 years and were going for a quadruple before the economy stepped into the picture and put some sanity back on the table.

dover-diva
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 Posted: Thu Mar 26th, 2009 02:05 am
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taxpayertoo wrote: This is still the best country in the world to live in - but it isn't free.  Exchanging an income tax for a sales tax just makes things fair.
The one thing you said right, was that this country isn't free. Think about it !!!

Playing the Game
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 Posted: Thu Mar 26th, 2009 01:59 am
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Why is that?  A sales tax is the most regressive form of taxation in this country.  The poor pay a larger portion of their wages in tax than does a wealthy resident.

taxpayertoo
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 Posted: Thu Mar 26th, 2009 01:50 am
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This is still the best country in the world to live in - but it isn't free.  Exchanging an income tax for a sales tax just makes things fair.

dover-diva
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 Posted: Wed Mar 25th, 2009 11:15 pm
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Playing the Game wrote: Anyone who wishes a new tax upon themself has a fool for a partner.
Well said. Politicians have got to be forced to concede their benefits first, before they DARE ask the taxpayers to go along with their budgets.

Playing the Game
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 Posted: Wed Mar 25th, 2009 10:57 pm
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Anyone who wishes a new tax upon themself has a fool for a partner.

taxpayertoo
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 Posted: Tue Mar 24th, 2009 11:55 pm
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so why the objections to a sales tax?  Industrial jobs are gone for the most part in Delaware.  Service jobs are left.  Many of the service jobs depend on tips - which are very difficult to tax fairly.  So I say do away with the income tax and put on a sales tax.  Everyone shares in the expense.

Don't cut state employees pay, give them a raise for a change.  You can tax it and they will spend it - which is good for the economy.

Last edited on Wed Mar 25th, 2009 12:54 am by taxpayertoo

tspong
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 Posted: Tue Mar 24th, 2009 08:41 pm
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Copied below is a guest commentary submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

By Walter G. McGinnis Jr.

Upon reading Governor Markell’s budget proposal in Friday’s State News I have numerous questions to ask.

Question: Why is it that the State of Delaware is the biggest employer in the State? What happened to private industry?

Question: Why do we need all these administrators, assistant to the assistant to the assistant whatever, paralegals, wellness, and grief counselors in our school systems? Could it be old time Feather bedding jobs? Sounds like too many chiefs and not enough Indians.

Question: Noticed in your cost savings proposal that entitlement programs are not mentioned, except for the Medicaid increase from the Federal Stimulus Package (i.e. pork barrel package). Does anyone every notice in the classified section under public notices in this paper the “unknown father” notice to appear before Family Court. Just another case of somebody else’s responsibility being passed on to the taxpayers. This means to me the following: Welfare, aid to dependent children, Medicaid, food stamps, subsidized housing or any other government program (be it State or Federal) to ride the gravy train on the taxpayer’s dime. Wonder how many of these recipients on the public dole use these benefits to purchase drugs to satisfy their addiction while all the while neglecting their children? I guess have a child with “unknown father” and get a free ticket on the gravy train and put it on the taxpayers tab!

Question: Being a smoker for many years, why does the State keep raising cigarette taxes? I know the obvious answer “quit smoking”. But then again if smokers quit, your revenue decreases. Kinda a catch 22 situation. My idea is to lower this tax and take advantage of the surrounding State’s people that smoke to buy tobacco products here. Case in point: Maryland’s revenue from tobacco sales last year was reported to be down 28%, because their residents were either going to Delaware or Virginia to buy their cigarettes.

Question: How is opening more casinos going to increase State revenues while the existing casinos are facing declining revenues from competition from neighboring states and the unemployment rate raising effecting their bottom line. Why not have table games such as dice and card games? How about opening a separate section for smokers. I know of people who go to the Chester Casino just for this reason. As far as sports betting goes, people are going to bet on sports whether or not it’s legal or illegal, so the State should take advantage of this revenue stream.

Question: As far a everybody sharing this pain, why not raise the gas tax 5 or 10 cents a gallon to pay for the highway system. I know this will not be popular but you can’t pick and choose different groups to tax. Just raising sin taxes (tobacco, alcoholic, gambling) aren’t going to solve the budget deficit. Another case of declining revenue to be made up somewhere else.

Question: What’s next to be taxed? How about obesity tax or carbon tax or a global warming tax? Whatever happened to one’s personal responsibility. Instead people rush to either the Federal or State Governments to bail them out from their irresponsible decisions.

In closing, Governor, you can’t do “everything for everybody”, there just isn’t enough money in the World.

 

Editor's note: Mr. McGinnis resides in Smyrna.


 

 

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 Posted: Tue Mar 24th, 2009 07:54 pm
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Copied below is a guest commentary submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

 

By Gov. Jack Markell

 

Late last week, I announced my plan to solve the historical budget crisis Delaware is facing. These decisions were not easy to make, but we, as Delawareans have no choice but to rise to the challenge

My administration and I first looked at how Delaware got to this point. More than most states, Delaware was exposed to cracks in the foundation of our national economy. Delaware’s reliance on manufacturing and financial services made our hit particularly hard. Our unemployment rate has doubled over the past year, and will continue to get worse as employees laid off at the end of last year enter the unemployment statistics. In addition to a rising unemployment rate, our revenues have rapidly declined as well.

There are three principles I will use as we move forward to solve this crisis before us. They are fiscal responsibility, compassion by keeping our core commitments, and shared sacrifice. By following these principles, I know we will bring Delaware out of this budget shortfall.

There are many elements of my plan I would prefer to not have to propose, but I believe it is a responsible and reasonable approach to this historic challenge. We’ve looked line by line for savings, and this plan cuts more than it raises in revenue. And, to be fair, we made sure the cost of these solutions was shared across the state. My proposal is for all state employees to take a temporary 8 percent pay cut. Delaware's state employees are hard-working and underpaid.  Over a period of many weeks, they told me over and over again that they preferred that the sacrifice be shared by all rather than have some employees suffer layoffs. The only alternative to laying-off workers is to temporarily cut the pay of all state employees, and I believe that is a better path to take. The proposed 8% pay cut will save us from laying off 1,500 people and $91M in the 2010 fiscal year. This decision, while difficult, keeps our public servants employed and our core commitments met without adding to our unemployment rolls. Of course, I cut my own pay by 10% the day I took office.

Guided by our principles, our solution to the $750 million shortfall would:

Reduce spending by $331M

Reallocate special funds by $40M

Leverage $155M in federal stimulus funding

Raise $55M by re-authorizing a sports lottery and getting a fair deal for Delawareans

Increase our revenues by $166M

And raise fees and fines by $12M

I want to make clear what is still in this budget and what Delaware’s state government will be doing in the year ahead. Police will still ensure our families’ safety. Schools will continue to prepare our children for the future. The state will continue to monitor the quality of our air and water for improvement.

We will continue to support small and other Delaware-based businesses to create new and lasting careers. The most vulnerable populations in Delaware including the medically needy, our children, veterans, elderly and disabled will continue to receive the protection they deserve and the assistance they need. We will keep these core commitments while being fiscally sound.

During these difficult times, I ask you to commit to volunteering, to strengthen our community through service. If we do this, we will get through this difficult period and get our economy moving again. Please go to http://betterdelaware.org to look for opportunities to volunteer near you.

These are difficult times and these are difficult decisions. However, I remain firmly convinced that our state’s best days are ahead of us. These problems may confront us, but they will not define us. I ask you to help us create new solutions, by sharing your ideas with us on how to create a more efficient, effective, responsive and responsible government by going to http://ideas.delaware.gov/.

We will leverage our resources to make Delaware a center for innovation and opportunity. We will turn our small size to our advantage and be more nimble, more responsive and simply more energetic than anyone else around us to recruit and retain new jobs. We will foster companies who know their purpose and want to create not just jobs but quality careers for Delawareans. And we can, and will, move together with a purpose that makes clear that we have the power to define our future for generations.

 

tspong
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 Posted: Tue Mar 24th, 2009 07:44 pm
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Copied below is a guest commentary submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

 

By Reid K. Beveridge

 

Gov. Jack Markell has got his budget-balancing proposal somewhere between partially and mostly wrong. He touts such things as an 8 percent pay cut for state employees as “sharing the pain.”

That’s about like when you need surgery. You suggest that I let the surgeon cut on me the same as you whether I need surgery or not – so I can share your pain. There are at least two things wrong with Markell’s proposal. Perhaps three or four.

One. The 8 percent, across-the-board pay cut for state employees.

Two. The raising of business taxes.

Three. The failure to seize the moment and undertake major public school reforms. Even President Obama is trying this latter one, albeit in a very modest way by his advocating merit pay for teachers.

Taking these in order, there is little doubt that across-the-board pay cuts save a lot of money in a hurry. Hence, this is the easy say to sop up a lot of the red ink. It also is wrong.

One reason it is wrong is that it punishes the lower-wage state workers far more harshly than it does people in Markell’s pay grade. For example, losing $2,500 out of your salary if you are making $30,000 a year is a lot more punishing than losing $8,000 if you are making 100K. That $2,500 may be about what your car payment is for a prison guard or an aide at a state hospital.

Markell says, of course, that the 8 percent pay cut is the equivalent of 1,500 layoffs. It may sound like avoiding putting 1,500 state workers on the unemployment line is merciful and kind. But it is not good government. It may even be very bad government.

The reason it is bad government is that Markell does not address in any way the real problem with state governance in Delaware currently. That is that state spending rose 43 percent in the past eight years, eight years in which he sat in his office in Dover and didn’t utter a peep of objection. It may well be, given his recent statements, that the reason Markell didn’t utter a peep of objection is that he really favors this radical expansion of the state. Delaware now spends more per capita on state government than any other state.

Hence, the current economic malaise gave Markell and his Democratic allies a golden opportunity to cut the size of Delaware state government back down to size. Indeed, Markell & Co. have missed the opportunity to reduce the size of government by identifying and then closing whole agencies and entities. They have eschewed the opportunity to decide what state services are truly essential and which are “nice to have.” A wiser approach would have been to junk some of the “nice to have” stuff and strengthen what are basic, core functions of state government. These are relatively few: Highways, prisons, state police, public schools and universities, the National Guard, pollution control and a few that can or should pay for themselves such as state parks.

Much of the rest could be a candidate for drastic downsizing or elimination. Our dustbin of history is pretty empty here in Delaware at the moment. Some candidates for that dustbin:

·         Whole chunks of the Department of Health and Social Services.

·         The whole Department of Labor.

·         That part of the DART bus system that runs empty or nearly so over non-New Castle Country roads.

·         Domestic Violence Coordinating Council (whatever in the world that is).

·         Most of Homeland Security – give what is absolutely essential to the National Guard, which will do all the response work anyway.

·         Manufactured Home Relocation Authority (what?)

Etc. you get the idea.

Second, this is precisely the wrong time to be raising business taxes. If anything, we should be cutting them. Apparently Markell hasn’t notice that many of the Fortune 500 businesses that incorporate in Delaware are somewhere between big trouble and bankruptcy. Sure, let’s raise GM’s taxes. Bye-bye 4,000 jobs in Wilmington’s Boxwood road plant. How do you like that?

One might think that a man like Markell, who came to state government out of the Wilmington banking and business community, would know better than this. Apparently not.

Further, he obviously isn’t listening to Delaware Chief Justice Myron T. Steele. Steele remarked to a local service club recently that he is very concerned that some of the Obama Administration’s banking and bailout legislation will dangerously dilute Delaware’s historic advantage in convincing multi-national corporations to incorporate in Delaware. Business taxes contribute an enormous percent of the state’s total revenue stream. We dare not endanger it this way.

The reason why Steele is concerned is simple for business owners to understand. It may not be so apparent to others. That reason has to do with Delaware’s unique Chancery Court, which is primarily a business court. These corporations incorporate in Delaware to gain the protection of the Court of Chancery. They want this protection because Delaware’s body of business law is extensive and mature. The General Assembly doesn’t fool around with business law except very, very carefully.

Then, if a corporation finds itself in court, it will be in Wilmington, Dover or Georgetown. It will be before a judge whose everyday job is business law. As Steele put it, if you are CEO of a corporation, which judge would you prefer: one who deals in business law daily, or one who judges a drug case one day, civil damages the next and a freedom of speech case the next?

Steele notes that the bailout bills tend to move some of this litigation to the federal courts as noted above. Corporations will not be inclined to incorporate in Delaware if their corporate governance issues are in federal court rather than in the Court of Chancery.

A third area is Markell’s failure to address school reform. Last week, the Seaford, Laurel and Georgetown schools were shut down for a day because of gun and bomb threats. This case was quickly resolved, but it does illustrate one thing. As it happened, the day of the threats was the day students were taking the Delaware State Testing Program (DSTP) exam. One wonders how much was really lost notwithstanding the “woe is us” bleat from administrators.

Several years ago, when he was beginning his abortive presidential campaign, former New York Mayor Rudy Giuliani made a talk in Wilmington in which he lamented the condition of New York City’s public schools. And then he made a startling observation. He commented that he had succeeded in wresting most of the control of the city’s schools from its entrenched, elected, full-time school board. Only to find that he would totally fail to make any difference whatever even though he ostensibly had all the power. He said American public-schools would have to be completely destroyed before something could be created to replace them.

In Delaware, where schools are principally financed by the state, the money is the power. If it were deemed required to save $100 million on schools, vast and desirable reforms could be implemented notwithstanding the teachers’ unions. For it is the teachers’ unions that will be the main impediment to improvement in public schools.

And finally, one more topic: sports betting. I realize that legalization and implementation of sports betting probably is a foregone conclusion in Delaware simply because it is cheap revenue. It is an “attractive” option because our state is “grandfathered” as the only state east of the Mississippi River where it can be done under federal law.

However, sports gambling is an insidious evil. And evil it is.

But let me say one thing first. I am not opposed to all gambling. I do not believe gambling is a sin or evil in and of itself. I do not object to golfers putting a little wager on their game. I enjoy a game of poker with my friends. I do not even oppose Delaware’s casino slots enterprises, although I would note that I never saw a happy person pulling the lever. Slots tend to prey on the least able to pay.

I do not gamble much simply because casinos bore me, and I do not choose to spend my recreational dollars playing blackjack with a professional dealer using three decks. On the other hand, I do enjoy the horse track, and I do not shy from putting down $5 or $10 on a nag.

Sports betting, however, is a different species entirely. For the most part, one bets on sports over the phone. In too many cases, one charges the bets on a credit card. And further, in far too many cases, the person gambling this way can run up tens of thousands of dollars in debt before another, more fiscally responsible member of the family either finds out or can take control.

Ever get a credit card application in your mailbox? Of course, you have. Dozens, hundreds perhaps. Imagine the temptation to fill out every application, gets dozens of cards and then run up the tab to the limit. Now you the gambler are headed right down the middle of the highway towards financial ruination. Taking your spouse and kids right along with you, oh by the way.

All this is up to the General Assembly now. Given Democratic majorities in the House and Senate these days, it seems likely that much of Markell’s ill-advised agenda will be adopted.

Too bad for us.

Beveridge has covered state politics in Texas, Iowa, Wisconsin, Delaware and Washington, D.C. He is now retired at Broadkill Beach. Beveridgere@prodigy.net

 

tspong
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 Posted: Tue Mar 24th, 2009 07:03 pm
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Copied below is a letter to the editor submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

 

We have 671 public school administrators in our 19 school districts, 429 of whom make over $100 thousand per year for a total cost of some $48 million — just in salaries alone.


What would you like to bet that the politically connected D.S.E.A. will divise a way to intice the General Assembly to find a way over the bridge and through the woods under the table and up to the roof then down to the celler into the hidden room away from the light of day and public view to exemp this group from the 8% "across the board" pay cut so as "not to hurt districts ability to attract and retain highly qualified administrators"?


Fred Allen Bass


Dover

tspong
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 Posted: Tue Mar 24th, 2009 07:00 pm
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Copied below is a letter to the editor submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

 

I am writing to express my opposition to Govenor Markell’s proposed 2010 budget. I am an educator in the Caesar Rodney School district. The governor’s proposed salary decrease does not share the burden equally throughout the state. My wife and I are both educators. If the proposed budget passes and becomes law my wife and I will receive a substantial pay cut, have to pay a larger share of health care, and because we are a two income family pay a larger personal income tax because we make more than $60,000 per year. Fair? I think not. The governor states that these cuts will be temporary. PLEASE! We all know that once the state takes the money away we will never see it again.


My classroom policy is that you can not criticize without making positive suggestions to remedy the problem. I will adhere to that rule here. This proposed budget focuses on cuts instead of generating more revenue apart from sports betting and sin taxes. Why not increase vehicle registration fee, increase gasoline tax (this will generate revenue and cut down on emissions via less driving) and consider raising corporate taxes. Build a general personal income tax schedule that does not stop at $60,000 per year but includes income brackets into six-digit incomes and beyond. Surely taxing a person/family making $70,000 per year and a family making $300,000 per year at the same rate is not fair. Lastly, initiate a permanent state sales tax of 2-3%. This will provide permanent source of revenue for the state and still be small enough to attract business from neighboring states. If the current executive and legislative branches lack the courage to initiate a sales tax, then have a state-wide referendum and let the voters decide.


In conclusion, I spend approximately 15-20 hours per week working late at school, working at home in evenings and on weekends preparing for class, grading work or doing other required administrative work that I am not compensated for. And now you are considering paying me less? Please don’t tell me I get summers off with pay and all holidays. I only get paid for 10 months work; that salary is spread out over 12 months. My salary is far too small for the work I put in and the students I deal with daily. I teach because I love the job. I accepted a small salary because it is offset by smaller health care premiums. I made sound financial decisions for my family based on my current salary. These huge, unfair cuts may cause me to default on home and auto loans. Finally, I am a registered democrat and have voted in every primary and general election. I will not vote for any incumbent, who votes for or supports this proposed budget.


Donald F. Miller


Dover


 

 

taxpayertoo
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 Posted: Tue Mar 24th, 2009 12:13 am
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The State hires "casual seasonal" and "durational" employees.  Those jobs were never meant to be full time premanent jobs.  But the State has ignored the rules and kept the casual seasonal employees on for years - they work 29.5 hours in some agencies and 37.0 hours per week in other agencies.  With no benefits and no paid holidays.  Somehow that doesn't really sound legal. 

Then the State found that they could get experienced people (gee no training required!) to fill jobs without paying the benefits and holidays by hiring retired State employees as "casual seasonals" making in many cases the same rate of pay as when they were full time.  Retired one day - rehired a week later....what's wrong with this picture?  I'd love to know the number of retired state employees working at the State in this capacity or the ever popular "consultant" position.  Guess it pays not to pass on one's knowledge to someone else so they could do the job when they retire.

Last edited on Tue Mar 24th, 2009 12:15 am by taxpayertoo

Lottery Winner
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 Posted: Mon Mar 23rd, 2009 11:00 pm
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Dear Mr. Bushweller - I understand and agree with 80% of what you say.  Big disagreement over use of the rainy day fund.  If it ain't raining now and you can't justify using it, would a call from Noah help?

tspong wrote:
Copied below is a guest commentary submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

 

By State Sen. Brian J. Bushweller

 

As the State Senator for the 17th District, I have written before about the staggering shortfall in state revenue we in Delaware face for Fiscal Year 2010. At two “Town Hall” meetings in my district this year, and in numerous other meetings, conferences, private conversations and other venues, I have tried to alert constituents to the fundamental seriousness of this crisis. Many of my comments did not fall upon welcome ears but I thought it was important to be honest and candid. Governor Markell’s proposed budget has now made crystal clear just how bad this situation is.

On the one hand, I commend the Governor for presenting the General Assembly with a framework within which we can now begin in earnest the extremely difficult process of formulating a FY10 budget. The Governor has demonstrated considerable political courage in proposing a budget that meets the constitutional requirement for a balanced budget in the face of a revenue shortfall most of us have never witnessed in our lifetimes.  On the other hand, the Governor’s proposal is only that – a proposal – and the final budget may look different than this initial framework.

We need also to face the reality that future revenue projections between now and June 30 may indicate an even greater shortfall than the $750 million currently predicted. Just released unemployment figures for February show another 3,000 Delawareans lost their jobs last month, raising the state’s unemployment rate to 7.4%, the highest in 26 years. Kent County’s rate is even higher – 7.8%. It is very possible that the downturn in revenue has not bottomed out.

As the General Assembly wrestles with this historic problem over the next 100 days, there are several principles I believe should guide our decisions:

 

1.                   The concept in the Governor’s budget of shared sacrifice should be maintained. The burden of meeting this challenge should be spread as equitably as possible.

2.                  Layoffs of state employees should be avoided. Especially in this economy, losing a job altogether presents a frightening problem. Further, the State would have to pay unemployment benefits for laid off workers, thus reducing the effect on the budget.

3.                  State employee pay cuts should be as low as possible. Unexpected drops in income are difficult even for the best managed family budgets.

4.                  Cuts should have less impact on lower paid employees. Lower paid employees experience proportionately greater pain than higher paid employees from across the board cuts.

5.                  Tax increases should be kept as low as possible. This is important given the financial stresses the overall economic situation has created for the average Delaware family. It is also important given the need to avoid steps that might actually squeeze off the economic recovery when it might otherwise get underway.

6.                  Fiscal responsibility must be the standard. We cannot solve this problem with short term gimmicks such as spending down the Rainy Day Fund, which create even worse problems in future years.

If some of these principles seem at odds with each other, they are. That’s what makes this process so difficult. All of the people affected – taxpayers, employees, recipients of vital state services and others – have very legitimate reasons for concern.  Finding the correct balance is a responsibility we in the General Assembly accepted when we ran for office; it is a responsibility we must now fulfill.

Let me make a final point about Legislator salaries. There has been some confusion about whether it is constitutional to cut elected officials’ pay, as the proposed budget recommends cutting state employee pay. My commitment is to make sure Legislators and all other elected officials are subject to the same cuts as state employees.

The concept of shared sacrifice applies to elected officials every bit as much as it applies to everyone else. If there is some kind of constitutional problem in this regard, I will personally write a check to the State representing a cut in my Legislative salary equal to that imposed upon the employees and I will strongly encourage all of my colleagues to do the same.

 

Editor’s note: Sen. Bushweller, of Dover, represents the 17th District in the Delaware State Senate.

 

everydaytaxpayer
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 Posted: Mon Mar 23rd, 2009 10:57 pm
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our gov. was our treasurer for the last 8 years Did he have a clue this was comming?

it eems like we should have all been ready for this for the last 4 or 5 years?

everydaytaxpayer
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 Posted: Mon Mar 23rd, 2009 10:54 pm
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You actully want to beat up on the men and women who keep the inmates where they belong?

TruthwillOut
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 Posted: Mon Mar 23rd, 2009 09:04 pm
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tspong wrote: Copied below is a letter to the editor submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

 


The Executive Board of the Correctional Officers Association of Delaware, on behalf of its more than 1500 members, strongly objects to the Governor’s proposed 8% salary cuts and health care cost increases. There is also a strong disapproval of any exemption of non-merit employees from sacrifices that merit employees will be asked to make. There is no doubt that these proposals would put more employees and their families at or below an income level that would qualify them for public assistance. No state employee should ever have to apply for public assistance. Now is the time for all state employee union leaders to meet in an effort to join forces in opposition to the Governor’s plan.



Stephen Martelli


President, Correstional Officers Association of Delaware

Oh this is fantastic, people are loosing their jobs cos their company didnt make as much this quarter compared to last quarter.

Be happy you get to keep a job pay decrease or not! I really loved the part about how no state employee should have to apply for public assistance. What a load of crap. from what I hear you COs will make it up in over time anyway.

All the gov employees need to learn the same lesson as the corps 'you will get less profit or you will get none'

take it or leave it.

tspong
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 Posted: Mon Mar 23rd, 2009 09:04 pm
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Copied below is a guest commentary submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

 

By State Sen. Brian J. Bushweller

 

As the State Senator for the 17th District, I have written before about the staggering shortfall in state revenue we in Delaware face for Fiscal Year 2010. At two “Town Hall” meetings in my district this year, and in numerous other meetings, conferences, private conversations and other venues, I have tried to alert constituents to the fundamental seriousness of this crisis. Many of my comments did not fall upon welcome ears but I thought it was important to be honest and candid. Governor Markell’s proposed budget has now made crystal clear just how bad this situation is.

On the one hand, I commend the Governor for presenting the General Assembly with a framework within which we can now begin in earnest the extremely difficult process of formulating a FY10 budget. The Governor has demonstrated considerable political courage in proposing a budget that meets the constitutional requirement for a balanced budget in the face of a revenue shortfall most of us have never witnessed in our lifetimes.  On the other hand, the Governor’s proposal is only that – a proposal – and the final budget may look different than this initial framework.

We need also to face the reality that future revenue projections between now and June 30 may indicate an even greater shortfall than the $750 million currently predicted. Just released unemployment figures for February show another 3,000 Delawareans lost their jobs last month, raising the state’s unemployment rate to 7.4%, the highest in 26 years. Kent County’s rate is even higher – 7.8%. It is very possible that the downturn in revenue has not bottomed out.

As the General Assembly wrestles with this historic problem over the next 100 days, there are several principles I believe should guide our decisions:

 

1.                   The concept in the Governor’s budget of shared sacrifice should be maintained. The burden of meeting this challenge should be spread as equitably as possible.

2.                  Layoffs of state employees should be avoided. Especially in this economy, losing a job altogether presents a frightening problem. Further, the State would have to pay unemployment benefits for laid off workers, thus reducing the effect on the budget.

3.                  State employee pay cuts should be as low as possible. Unexpected drops in income are difficult even for the best managed family budgets.

4.                  Cuts should have less impact on lower paid employees. Lower paid employees experience proportionately greater pain than higher paid employees from across the board cuts.

5.                  Tax increases should be kept as low as possible. This is important given the financial stresses the overall economic situation has created for the average Delaware family. It is also important given the need to avoid steps that might actually squeeze off the economic recovery when it might otherwise get underway.

6.                  Fiscal responsibility must be the standard. We cannot solve this problem with short term gimmicks such as spending down the Rainy Day Fund, which create even worse problems in future years.

If some of these principles seem at odds with each other, they are. That’s what makes this process so difficult. All of the people affected – taxpayers, employees, recipients of vital state services and others – have very legitimate reasons for concern.  Finding the correct balance is a responsibility we in the General Assembly accepted when we ran for office; it is a responsibility we must now fulfill.

Let me make a final point about Legislator salaries. There has been some confusion about whether it is constitutional to cut elected officials’ pay, as the proposed budget recommends cutting state employee pay. My commitment is to make sure Legislators and all other elected officials are subject to the same cuts as state employees.

The concept of shared sacrifice applies to elected officials every bit as much as it applies to everyone else. If there is some kind of constitutional problem in this regard, I will personally write a check to the State representing a cut in my Legislative salary equal to that imposed upon the employees and I will strongly encourage all of my colleagues to do the same.

 

Editor’s note: Sen. Bushweller, of Dover, represents the 17th District in the Delaware State Senate.

 

tspong
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 Posted: Mon Mar 23rd, 2009 08:33 pm
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Copied below is a letter submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

 

A brief history of tobacco taxes in Delaware. In July 2003 after passing the Clean Indoor Air bill, the state raised its tobacco tax from 24 cents a pack to 55 cents a pack. In August 2007 the tax was raised from 55 cents to $1.10 a pack. Under a proposal before the Legislature right now the tax would be raised another 45 cents a pack to $1.55 a pack. That works out to a tobacco tax increase of 650 percent in six years time. Don’t forget that the Federal tax goes up another 61 cents a pack starting April 1, 2009. A rough calculation of the combined taxes is that it will be about $25.00 a carton.


Meanwhile, Delaware continues to receive its millions of dollars a year as its share of the multi-state lawsuit against the tobacco companies. By the way, as you know doubt know, the attorneys who successfully brought the lawsuit against the tobacco companies took home billions of dollars (yes, billions with a "B") as their share.


One of the "compelling" arguments for these increases is always "Look how much these people with their dirty habit cost the rest of us." I have never once seen any news source mention that smokers pay more in health care premiums and life insurance premiums. It’s always "These people are costing us healthy people a lot of money." O.K, it always sells. You’ve got to love the way the human mind works.


In a related issue, I’m trying to recall just when it became a function of government to legislate peoples’ personal behavior. Alternatively, at least make them pay.


Unless things have changed a lot in our schools, we make a big thing out of telling the young and impressionable that the "War Between the States" was fought to "free the slaves." Yes, this was one of the results of the Civil War, and a good result. However, one of the biggest things that moved this nation towards that conflict was taxes. The northern states, jealous of how well the southern states were doing with their cotton crops, with their newfound majorities in Congress decided to really stick it to the south with excise taxes and tariffs; probably a majority of these receipts were spent for projects in the north. Determined to maintain their majority, members of Congress bitterly fought the entrance of new states into the Union that might be "slave states." We do our children a great disservice when we boil things down to a simple "We’re right, they’re wrong" sort of argument.


You will be forgiven if you are starting to get a little nervous about our national political scene right now. If we turn "Yes, we can!" into "Because we can!" we may be in for a lot of trouble.


There are a lot of other issues during these difficult times. It wouldn’t be a bad idea to pray a little for the continuation of our Union. Am I allowed to use that word "pray?"


Marshall McGowan


Rehoboth Beach

tspong
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 Posted: Mon Mar 23rd, 2009 08:20 pm
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Copied below is a letter to the editor submitted to the Delaware State News. You can post your opinions by clicking on "Reply."

 

The Executive Board of the Correctional Officers Association of Delaware, on behalf of its more than 1500 members, strongly objects to the Governor’s proposed 8% salary cuts and health care cost increases. There is also a strong disapproval of any exemption of non-merit employees from sacrifices that merit employees will be asked to make. There is no doubt that these proposals would put more employees and their families at or below an income level that would qualify them for public assistance. No state employee should ever have to apply for public assistance. Now is the time for all state employee union leaders to meet in an effort to join forces in opposition to the Governor’s plan.


Stephen Martelli


President, Correstional Officers Association of Delaware

tspong
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 Posted: Mon Mar 23rd, 2009 04:10 pm
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What do you think?

From the Delaware State News:

Del. workers reeling from pay cut plan


Union: Reserve funds should be tapped first


By Leah Burcat


Delaware State News


DOVER — The 8-percent across-the-board pay cut for all state employees that was proposed by Gov. Jack A. Markell in his budget recommendation on Thursday still has state workers fuming.


Such a plan has not been proposed in the last 30 years. Information from before then is not available.


Under the mantra of shared sacrifice, Gov. Markell said such an action would help save nearly $92 million without resorting to layoffs.


State workers, though, don’t buy it.


There are unrestricted reserves, such as the rainy day fund, that state lawmakers could use to cover the budget deficit, said Michael A. Begatto, executive director of the Delaware branch of the American Federation of State, County and Municipal Employees.


Until the governor and lawmakers look into that money, AFSCME will not look into any other compromises, he said.


In addition to the pay cuts, Gov. Markell said he supported the reduction in the state share of health care premiums that was proposed by the State Employee Benefit Committee. That, in combination with the pay cuts, would actually reduce state employees’ take-home pay by about 10 percent.


The State Employee Benefit Committee proposals would change the percentage that state workers pay for their health insurance coverage.


For example, those who were paying just 3.2 percent, or $15.40 a month, for their individual Blue Cross Blue Shield plan, next fiscal year could be paying 6.3 percent, or $30.80 a month.


Those paying $128.74 a month for their family Blue Cross Blue Shield plan could be paying up to $173.80 a month for the same coverage next fiscal year.


With that change, the state would save about $16 million a year.


Proposals also on the table include raising co-pays to $15 from $5 for these plans for current and retired, non-Medicare employees, depending on the type of visit, which would save the state more than $4 million.


There are also proposals to reduce prescription drug coverage and renegotiate contracts with insurance companies that could save the state an additional $6.3 million.


The committee must vote on this proposal by March 30. It does not require legislative approval.


Although the news is being met with frustration on the part of state employees, Gov. Markell said while announcing his proposal that he came up with these decisions after speaking with state employees from across the state.


"We heard over and over from state employees that they would prefer a shared sacrifice where everyone gives up something instead of some giving up everything," said Gov. Markell.


In his proposal, the 8-percent pay cut would be across the board and would include all members of the legislature and governor’s staff.


By law, the legislature cannot set the pay for state judges or Cabinet secretaries, so the proposal does not include them, but he said he hopes they would voluntarily take the same pay cut as all other state employees.


In addition, his proposal includes freezing career-ladder adjustments, trading three fixed holidays for three floating ones and reducing the number of teacher in-service days.


And while the proposal may appear to especially target teachers — both the pay cut and three fewer in-service days — Gov. Markell said that is not the case.


Since the state pays only 70 percent of teacher salaries — school districts pick up the rest — the 8-percent pay cut he proposed would only result in a 5.6-percent pay cut for them.


By reducing the number of teacher in-service days from six to three, they would experience the same pay reduction as all other employees, Gov. Markell said.


Some state lawmakers, although already included in the governor’s proposal, want to make sure they feel the burden as much as any state employee.


Rep. Bryon H. Short, D-Brandywine Hundred, said he wants to ensure that state lawmakers do not pass legislation that exempts them from the pay cut.


On Tuesday, he plans to introduce a resolution that would make sure that any salary decrease experienced by state employees is also experienced by members of the House of Representatives.


"Whatever adverse impact the budget has on state employees, we should at least take on that much," said Rep. Short.


Although Gov. Markell has said his proposal represents shared sacrifice, many state workers still do not believe it.


"We have people who are working for the state, who are the working poor. This is a major blow to them," Mr. Begatto said. "Cutting the salary of someone who makes $17,000 a year, pay grade one, would hurt them much more dramatically than others. This is not equal."


"Most of us (state employees) are living paycheck to paycheck," said Jim Kwasnieski, of Dover, president of the local AFSCME chapter and a DelDOT employee. "There are state employees on the lower end of the pay scale. It’s going to hit them hard."


And some state lawmakers agree.


"Look, we realize we’re facing some really tough challenges and a very deep hole," said House Minority Leader Rep. Richard Cathcart, R-Middletown. "Having said that, some of these proposals worry me. For instance, I think the salary cut of state employees is too large. If we do make a cut, I’d like to see it weighed according to salary, reducing the impact on low-wage earners."


"This is the beginning of the process. What is proposed is not going to be what gets passed and signed," said Rep. Short. "I recognize that this would impact differently someone making $60,000 and someone making $25,000."


Although the governor’s proposal must still go to the General Assembly for revision, debate and approval by the end of the fiscal year on June 30, it appears as if many state employees do not want to wait for the final result.


The state pension office reported a sharp hike in the number of calls from state employees inquiring about their options for retirement on Thursday and Friday.


Post your opinions in the public issues forum at newszap.com.


Staff writer Leah Burcat can be reached at 741-8250 or lburcat@newszap.com.

tspong
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 Posted: Mon Mar 23rd, 2009 03:31 pm
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Copied below is a letter to the editor submitted to the Delaware State News. You can post your opinion by clicking on "Reply."

 

A few thoughts on budget woes


I am not happy with Gov. Markell’s plan for dealing with our budget deficit. It may seem like an 8 percent pay cut for state workers is a fair way to go, but to me it seems like a lazy, ham-handed approach to fiscal management.


Anyone who has ever worked for the state knows that there are cost efficiencies to be had from getting rid of unproductive workers and improving the organizational structure. If that were to be done correctly, it would mean someone would have to do an honest evaluation of every aspect of our state’s functioning. Of course that would take a lot of competent work on someone’s part; ergo my "lazy" critique.


I’m not sure whether this pay cut applies to everyone receiving a state paycheck, but if it doesn’t that would warrant an additional adjective to describe it. That adjective would be unfair.


I am also not a fan of any state raising revenue through various "sin" taxes. We should be doing all we can to prevent substance abuse as opposed to relying on increased tax revenue from the sale of addictive substances to give us a financial boost.


Gambling is destructive to both the individual and the community. It produces nothing. It sucks money out of people who are often desperate people who can not afford to lose any money. Gambling often brings with it increased lawlessness in the form of organized crime, prostitution and both legal and illegal substance abuse.


I know that Gov. Markell inherited a disaster. However, I don’t think this is the way to bring it under control. What we need to do is get rid of waste and work within our communities to encourage new business and industry. Our citizens need honest employment.


I don’t know why it is that we continue to elect people with limited imagination and limited creative ability. I suspect that we have allowed ourselves to be content with a two-party system that seems to reward conformity and party loyalty as opposed to genuine ability and personal initiative.


Here’s a thought: Hire people to run agencies who are honest, competent and mindful of the fact that they are spending our money. Stop exploiting weakness. Reward success. Show some respect for basic ethical principles. Hire employees based upon the skills and work ethic they bring to the job, not upon whom they are related to or who they pal around with. Stop purchasing services from political cronies.


Brendan Buschi


Magnolia


 

Fred
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 Posted: Mon Mar 23rd, 2009 02:14 pm
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Okay...why not put some facts behind it?  If you think school administrators are overpaid, why not compare them to other states? If the salaries are so out of line, tell me what administrators get paid in NJ, PA, or MD?

I tend to think the focus on 100K salaries is at least part jealousy.  You want to argue that there are too many?  That may well be true, and I tend to think that consolidation of school districts is the way to eliminate positions, or at least some of them.   However, school administrators are going to make more than teachers, and superintendents are going to make more than principals. 

teach22
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 Posted: Mon Mar 23rd, 2009 01:46 pm
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 I am in shock after I read that Gov. Markell wanted to cut school employees pay by 8%.  There are over 400 school administrators in this state that make over $100,000 a year. That is $40,000,000!!!!   Most of them are so overpaid that they make more money than the governor.  We could easily cut the pay and many of these positions without having any effect on the students.  Taking such a huge amount of money away from teachers will destroy their morale and I personally don't think it is a good idea for teachers with bad morale to teach our children. 

teach22
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 Posted: Mon Mar 23rd, 2009 01:44 pm
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DSEA is the teacher's union.  It is totally funded by the dues paid by teachers.  Eliminating this association will have no effect on the state budget.

taxpayertoo
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 Posted: Sun Mar 22nd, 2009 03:26 pm
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I heard JOE rode for free all these years.  If that is true maybe there should be an outcry for him to ask for a bill for all those trips and pay up!  And how about the current senators and congressman??  If I am wrong I sincerely apologize.

Skjuda
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 Posted: Sun Mar 22nd, 2009 03:25 pm
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The rainy day fund in Delaware is just an amount on paper that is added to every year. Delaware has in place the 98% budget law that requires 2% be put into a fund for the future use in the event of an emergency. It is not actual cash just sitting somewhere to be spent. For them (the state) to utilize it they would need to issue bonds for the amount and sell them.

In todays global financial market selling bonds would not produce favorable terms and would be detremental for the long term. The effect would be horrific for our system and would increase our debt burden well beyond what is manageable. I believe Markel is doing the correct thing by attacking the very system that is the problem. State workers. The state of Delaware is the number one employer in the state right now. Since Minner was so intent on geting minimum wage jobs ( walmart distribution center for example) in instead of trying to help the big companiies stay we are left with very little industry in Delaware. Markel has very little choice in how he can overcome the budget shortfall then to go after the number one employer Delaware.

The waste from state employees is disturbing to say the least and well over half the employees could be eliminated. here are a few wasteful things that could be eliminated.

1 - requiring scientists at DNRC to spend half there time going to training classes to stay up on the latest trends. They spend 3/4 of there time traveling instead of doing the job they were hired to do.

2 - Close the DMV inspection lanes and allow gas stations and garages to do the inspections. This would stimulate the economy. Also allow private companies to tag and title vehicles in places like the mall. Have DMV as the middle man and official data holder.

3 - Stop all the foolish requirements that farmers have to have "Plans" in place. Plans like agriculture, water shed, animals, etc... This only wastes money and accomplishes nothing except requires farmers to spend money.

4 - Do away with the school districts and take away the tax portion. The state should fund them 100% and eliminate all the extra taxes homeowners have to pay. It is rediculous to have school districts hiring people at exhuberant salaries well above what the state allows and paying them out of district funds. A red flag should go off when a district hires a contractor (one person) who makes double what the Secretary of Education makes in salary. Waste at its best.

5 - Do away with the DSEA. Or at least stop funding it. Noway should people at DSEA be making  500,000 salary or more while they complain about teacher pay. I consider base pay to be salary and quaranteed bonuses as total salary. If bonuses are paid whether you do anything then it is base pay.

6 - Do away with state owned cars and require everyone to use there own cars and submit paperwork outlining why they used it, for what purpose and can it be eliminated in the future by using phones or other means.

7 - Fill up state owned property first before renting any building in Delaware. If a building is empty and state owned it should be filled up first and foremost. Build more state owned buildings. Why ae we paying high rent well above what a private company would pay? For example the a building in Wilmington cost 1.5 million to build and it was filled up by the state. Total rent from all departments is 660k a year. Thats less than 3 years return on the cost to build the building. Why doesnt the State build thier own and save the remaining rent?

So many more wastes that could be addressed but most of them would hit the congresses pocketbook in the so called donation factor. For every waste taxpayers identify there is some congressperson getting donations form the people exploiting the state. As in the US congress the Delaware congress does not care about you but in keeoing the money flowing for him and his special activities.

So again I think Markel is doing right by decreasing the pay of the number one employer and I would like to see it cut even more. Say 40 percent decrease sounds about right. Then we would be getting the amount of work for the dollar worth it.

out of work
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 Posted: Sun Mar 22nd, 2009 02:53 pm
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Not only deldot all the high ranking people in government that are getting all the big bucks and taking the the little people including the governor I voted for him this time but not next time HE IS OUT LIKE OBAMA

out of work
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 Posted: Sun Mar 22nd, 2009 02:50 pm
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I don't think delaware has a rainy day fund I think they have spent it and won't tell anybody because this is a rainy day. I would like to know where all the money that we are getting from the feds is going but nobody want to say because I think alot of that could be cut like 2 million or billion going for the trains in wilmington so that slick JOE can ride in confort I can't because I can't afford to go anywhere. Could anybody answer my questions?

out of work
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 Posted: Sun Mar 22nd, 2009 01:40 pm
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I agree and the only people that are going to be able to live right will be all the judges, govenor and the rest of the higher up people why don't they give back half of their pay then we might be able to balance the budget. Every time you turn around they are giving raises to themselves. Do they relize tha the more they raise the more crime is going to go up and they won't be able to collect the fines because everybody will be in jail then they will have to raise more taxes to pay for more jails. I could go on but the main thing is the people that are running this country should try to live on the pay that all the little people get.


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