Wilmington’s Riverfront Development Corporation (RDC) received $3.5 million through the state’s capital budget in July, bringing the taxpayers’ total investment in the riverfront since 1995 to over $280 million. Now, starting with a $2 million request, the RDC is proposing that taxpayers pick up as much as one-third of the tab for a $39 million hotel at the Riverfront’s public entrance. Is this simply throwing more money down a rat hole?   Certainly, seed capital from governm

The latest IRS data on personal income taxes collected from Delaware residents is for 2009. Examining the data is instructive.   About 14% of the returns were from Delaware households whose adjusted gross income was $100,000 or more. These high income households accounted for 46% of the income and paid 66% of the income taxes. On the other hand, low income households, those with adjusted gross income of less than $50,000, filed 63% of the returns, received 24% of the income,

11/9/2012 In their recent “Fiscal Report Card on America’s Governors,” the CATO Institute gave Delaware’s Governor Markell a “D”. The basis for the grade was that over the past four years the Governor has increased taxes (i.e., personal income, gross receipts, corporate franchise, cigarettes) while plunging ahead on state spending.    Is a “D” a fair grade?   First, the responsibility for the grade of “D” must be shared equally with the state legislature. The legislature pass

The recovery of employment since the 2008 crisis has been unusually slow. The unemployment rate has at last dropped below 7 percent because many have left the labor force. Total employment is still below its 2007 level. Persistent unemployment can be due to structural causes. For example, contraction in housing and retail may reduce jobs in those industries, while there may be expansion in other industries that require skills that the unemployed do not have. Usually this type

This article originally appeared in The News Journal as a Delaware Voice opinion editorial on November 18, 2014. The link is: http://delonline.us/1p1urFA   New Castle County Executive Tom Gordon and Wilmington Mayor Dennis Williams are to be congratulated for allowing consultants to produce a frank and stark Economic Development Strategic Plan. The economies of the county and the city cannot rebound without clear recognition of current strengths and weaknesses and a plan to

With the closure of the GM and Chrysler automobile plants, the unions’ share of employment in Delaware has fallen below the national average. But the remaining unions, through their supply of campaign funds, volunteers and votes have the Governor and most of the legislature in their pockets. Union management is willing to disadvantage Delaware’s citizens in order to advantage themselves. What is the evidence? First, even though only one-third of Delaware’s public school eight

Thanks to the generous support of CRI donors and the professional cooperation of the Delaware Office of Management and Budget, the payroll and vendor data in Transparent Delaware has been updated to include 2011. A review of the data shows that some things continued and some things changed substantially.   Orlando George Jr., president of Delaware Tech, remains the highest paid state employee with compensation nearly three times that of Governor Markell. Georges base pay cont

The Delaware Public Employees’ Retirement System is what you have dreamed about but are unlikely to ever enjoy. DPERS is a “defined benefit plan” which means that participants’ retirement benefits are paid out “regardless of market events.” State government retirees are sheltered from the roller coaster of the financial markets by Delaware taxpayers.   Naturally, in the face of low interest rates and collapsing stock values, one wonders what the future exposure of Delaware ta

The Caesar Rodney Institute has updated its Transparency Delaware website with state payroll and vendor data through 2010. Analysis of the pattern of the vendor transactions for 2010 is instructive. State government is a major buyer of the services of nonprofit organizations and a major donor to nonprofits. The 2010 vendor data was examined and an attempt was made to eliminate all payments to nonprofits that appeared to be solely for services rendered. This would include stat

There are many factors a business chooses when deciding where to locate or to relocate: tax rates, quality of life, quality of education system, government regulatory burden, and now for manufacturing businesses, whether a state has a Right to Work (RTW) law or not.   Proving that RTW is a significant contributor to a state’s economy is not entirely easy, because of the above factors. However, I have been studying the data extensively and believe there is a positive correlati