As evidenced by recently released data from the U.S. Department of Labor, Delaware is part of a nationwide carelessness in the administration of unemployment insurance benefits.   Over the past twelve months Delaware has made an estimated overpayment of unemployment benefits of more then $12 million, an administrative error rate of 9.5%. The total overpayment in Delaware for the last three years is almost $43 million, for an error rate of 9.3%. Among all the states Delaware h

In 1994 the State of Delaware made a successful bet on legalized gambling. Legislation authorized three horse racing tracks (now racinos) to build casinos for slot machines, which the State designated as video lottery terminals due to constitutional restrictions. Operations began in 1995 and revenues from slots and numbers lotteries are now the states fourth largest source of revenue. Gambling revenue to the state represents a voluntary payment of taxes. Unlike income and bus

Given two very different decades of performance, how do we expect employment in Delaware to perform in the coming years?

The Patient Protection and Affordable Care Act   On May 11, 2011, the Caesar Rodney Institute filed an amicus curiae or “friend of the court” brief before the U.S. Court of Appeals for the Eleventh Circuit in State of Florida, by and through Attorney General Pam Bondi, et al. v. U.S. Department of Health and Human Services, et al. (CV 11-11021). This case involves challenges by 26 States (not including Delaware), the National Federation of Independent Business and two individ

The recently released Transportation Trust Fund Task Force report projects a shortfall of $3.7 billion between spending and revenues over the coming ten years. The danger of not dealing with the shortfall is deterioration in Delaware’s transportation infrastructure and the resulting negative consequences for the state’s economy.   The Task Force report is excellent and comprehensive. It recommends both cost containment measures as well as alternative ways to enhance revenue.

The EPA altered regulations to switch to a new class of refrigerants that supposedly reduces global warming.  The reality is by 2100 the change will reduce forecasted temperature by 0.001 degree C, but will cost billions, add up to $70 to every new automobile, and increase flammability.  Read this report to learn the details.

Snapshot of Delawares economy as of March 2010

The latest report from the nonprofit State Budget Solutions (SBS) estimates Delaware’s outstanding debt to be $14.4 billion. This is four times the state’s current general operating budget of $3.6 billion. SBS aggregates state government debt (Delaware ranks 7 th highest per capita in the nation), unemployment insurance trust fund loans, the current state budget gap, and the unfunded pension and retiree healthcare liabilities.    With below average growth forecast for Delawa

The constraining influence of the Delaware Economic and Financial Advisory Committee (DEFAC) has been a major factor in maintaining the state of Delawares high bond ratings. Recently, however, DEFAC has drifted. Over the past decade the mean absolute percentage error in DEFACs one year ahead forecast of revenues has been 4.1% and the two year ahead error has been 6.7%. This is not stellar but is understandable given all the many factors that impact state revenues. And, DEFAC

Should all households of similar income in Delaware be taxed the same?