Delaware Lags in Fiscal Health by Dr. John Stapleford, CRI Chair 12/5/2018     The 2018 ranking of states by fiscal condition has been issued by the Mercatus Center. The analysis is based upon FY16 financial reports.   Delaware ranks 44th among the states for fiscal health.   Delaware has between 1.34 and 1.98 times the cash needed to cover short-term obligations. Revenues only cover 96 percent of expenses, with a worsening net position of –$377 per capita. In the long run, D

Delaware state tax revenue has consistently hovered around 5.5% of gross state output. The bottom line is that citizens and businesses are creative and find ways to limit the total government takes out of their pockets.

State expenditures on Medicaid are the fastest growing component of the General Fund.

Many state legislators in Delaware have chosen to be joined at the hip with the Delaware public teacher’s union. This is partly because of the generous campaign contributions bestowed each year by the union to political candidates that see the world the way the union does.   Changing sentiment among voters toward public schools is raising questions about the political costs of such blind loyalty.     Even though it is well recognized that more affluent parents are fleeing Nor

State governments vary in the degree to which they favor organized labor over taxpayers. The latest research from the Competitive Enterprise Institute (CEI) documents that Delaware government has adopted policies_OLD that give priority to unions over the interests of Delaware’s citizens.   Based upon 23 factors, the CEI ranks Delaware as the 10 th most union friendly state. Maryland is tied with Delaware, while Pennsylvania ranks 4 th , New Jersey 3 rd , and New York 1 st .

A recent report by the Institute for Truth in Accounting confirms what Caesar Rodney Institute has been saying about the seriousness of Delaware’s state government debt. The state has accumulated bills of $8.6 billion.   How did this run up in debt happen? The Institute singles out the use of antiquated budgeting and accounting rules that are used to determine employee compensation costs. Good accounting includes the cost of retirement benefits as they are earned. Delaware, i

With the economic recovery underway in Delaware projected state government revenues are running ahead of projected expenditures for this fiscal year (FY 2011) and next (FY 2012). At this time, according to DEFAC, the expected surplus will be $156 million for FY-11 and another $218 million for FY-12. Naturally everyone in Dover has ideas for spending these surpluses, including the Governor.   The major sources of increased revenue are tied to the economic recovery. Almost 75%

Delaware’s insurance commissioner has requested a waiver of the Federal rule requiring health insurers to spend 80 percent of each premium dollar on medical care. This is the wrong waiver. If Delaware would simply open itself to health insurance competition the terms of the balance between company costs and medical payouts would be dictated by consumers.   A more important waiver for Delaware to be seeking at this time is from the Federal Medicaid rules. Rhode Island has led

CEPA estimates the population of undocumented immigrants in Delaware to be 20,250 as of 2008. This includes 14,880 undocumented immigrants in New Castle County, 2,225 in Kent County and 3,150 in Sussex. These estimates are derived from the latest Bureau of Census data on the foreign born population for Delaware and the counties. Based upon research by the Urban Institute, 26% of the foreign born population is considered to be undocumented immigrants. That number is then adjus

The national base realignment and closure program (BRAC) is transforming the Aberdeen Proving Ground into a major center for high tech research and development. Employment at Aberdeen will hit about 22,000 by late 2011. The bulk of these employees will be civilians in occupations such as computer science, IT, engineering, physics, chemistry, and mathematics. Will Delaware benefit from the Aberdeen explosion? The BRAC effect Will the tremendous expansion at the Aberdeen Provin