the committee of 100
home about us committees meeting notes scholarship fyi archives links contact


 

MARCH 2005

Transportation Cuts Impact Economic Development

Unless we provide additional income in FY 2006 for the Transportation Trust Fund, multiple transportation projects we've been expecting to come on line will not. Many of these projects now facing eliminated or reduced funding are vital to economic development in Delaware. According to WILMAPCO's calculation, $82 million of the cuts are in New Castle County.

We've known for some time that we must find additional income for the Transportation Trust Fund to keep pace with the transportation improvements necessary to facilitate economic development in the State. We've been extremely fortunate under the leadership of Secretary of Transportation Nathan Hayward. In contrast to his predecessor, Anne Canby, who stopped most construction projects when she became Secretary, Nathan has facilitated transportation projects which meet the three-fold test of improving transportation, protecting Delaware's history and natural resources, and supporting economic development. Under his leadership, many of the most troublesome transportation problems have been or are being addressed.

However, the list of projects that remain vital to the State's mobility and its economic health includes many projects that have yet to begin construction. Beginning that construction will take more money than is currently available in the Transportation Trust Fund. The FY2006 DelDOT Operating and Capital Budget request submitted to Governor Miner's Budget office in October was $646 million. Because of insufficient funding, the proposed budget has been cut to $445 million statewide.

Those cuts include some vital projects. One example is the 1-95/US 202 interchange, which includes improving the I-95 North-bound offramp to North-bound US 202. While the US 202 improvements currently under construction will significantly improve traffic in the Blue Ball area, access to those improvements will be delayed by the monumental bottleneck on I-95 North at the offramp to US 202, a bottleneck which often makes access to and from Wilmington even more difficult. While AstraZeneca, with its headquarters expansion, is most often cited as the primary beneficiary of the US 202 improvements, in fact, nearby residents and businesses the length of Concord Pike, as well as around Rt 141, from the A.I. DuPont Institute to the DuPont Experimental Station, would benefit substantially from these now unfunded improvements. All will lose if the I-95/US 202 intersection is not improved.

Other New Castle County projects impacted by the cuts include the big oneBI-95 from the Maryland State Line to SR 141Bas well as others, such as the Churchman's Crossing Corridor improvements, including Churchmans Road Extension, SR 2/Harmony Road, and SR 4/SR7; the Wilmington Riverfront; paving programs; parking facilities; transit vehicle replacement and refurbishment; transit facilities; bicycle and pedestrian improvements; and Newark to Wilmington rail improvements.

Secretary of Transportation Nathan Hayward is scheduled to appear before the General Assembly's Bond Bill Committee of April 25th. Executive Director Beverley Baxter and members of The Committee of 100 Transportation Committee will be attending.

Governor Minner's 2006 Budget Proposals

Governor Ruth Ann Minner has proposed a FY2006 operating budget of $2.74 billion, 5.5% over the current budget year, and a $631 bond bill. In addition, Governor Minner has proposed creation of a new Livable Delaware Infrastructure Fund to pay for one-time projects. The Fund would be created by capping the amount of revenue from abandoned property that can go into the State's operating budget, reserving the rest for the new Fund. Budget highlights:

Education

  • $3 million to increase State funding of full-day kindergarten to make 20% of Delaware's kindergarten classes full-day in the 2005-06 school year, plus $30 million to fund renovations and additions of classrooms for full-day kindergarten, which local school districts could match without referenda.
  • $1.3 million to put math specialists in 22 middle schools.
  • $1 million for the Delaware SEED (Student Excellence Equals Degree) Scholarship program for tuition to Delaware Technical and Community College for high school graduates with good records.
  • $4.8 to reward Delaware teachers' skills and knowledge and to pilot an educator accountability program.
  • $200,000 to expand the Delaware Teacher Corps program to 50 students, paying tuition in return for teaching in Delaware public schools.
  • $2.5 million to offset high fuel costs for school bus contractors.

Health and Safety

  • $ $10 million for 3rd year funding of Governor Minner's cancer-reduction program, including screening and treatment for cancer victims who cannot afford it.
  • $19 million to improve coverage and upgrade equipment for the State's emergency radio system.
  • $4.3 million to increase correctional officers' salaries and address security recommendations of the correctional task force.
  • $1.9 million for rate increases for non-profit organizations providing health and social services programs for the State.
  • $1.1 million to fund 6 new Delaware State Police troopers and a 5-person Truck Enforcement Unit.
  • $250,000 to fully fund a Delaware Intelligence Analysis Center to analyze criminal and potential terrorist activity statewide and regionally.
  • $100,000 to address high infant mortality in Delaware pursuant to an upcoming report.

Environment

  • $38.5 million Livable Delaware Infrastructure Fund, to pay for projects that preserve and maintain the environment and quality of life, created by capping at $246.5 million of abandoned property revenue in the general fund, using any abandoned property collections above that amount to fund farmland preservation, water supply and wastewater projects, beach preservation, and open space purchases.

Economy

  • $12 million for the second year of Gov. Minner's New Economy Initiative, which provides incentives to companies of all types, including manufacturers, biotechnology, small businesses, and venture capital.
  • $10 million for the Strategic Fund, the State's traditional funding for job creation and expansion.
  • $10 million for the Port of Wilmington and $5 million for the Wilmington Riverfront.

Maintenance

  • $125 million of the $143 million in new money added to the proposed budget over the current year will go to maintain current state obligations or to a proposed pay raise for State workers, including $45.8 to maintain Medicaid services and benefits, $14.6 million to maintain pension benefits at current levels, $11.3 million to maintain health care benefits for State employees, $9.6 million for debt service, $8.5 million for new public school students, $5.6 million for preset raises for Del Tech employees, and $31.7 million for State employee raises.

Beverley Baxter