OCTOBER 2006

Delaware's Economic Health at Risk by New Realities for Transportation in Delaware

While neither the Minner Administration nor the General Assembly were willing to address the need for additional funding for the Transportation Trust Fund (TTF) during this election year, Delaware's transportation needs continue to grow and the income to address these needs continues to shrink in real terms.  The inadequate-funding message is now so dire that it appears certain to impact economic development in the State.

Over the last ten years, revenue sources in the Transportation Trust Fund increased by 52%.  During the same ten years, DelDOT faced cost increases in multiples to its income:

Unlike most states, which share transportation responsibility with counties and municipalities, DelDOT is responsible for 89% of the roadways in Delaware (in contrast to 20% for most other DOTs).  DelDOT's responsibility includes:

Adding to its operation costs, DelDOT, unlike other DOTs, is responsible for transportation issues in the subdivision process.  In addition, Delaware has one of the most comprehensive paratransit systems in the nation, serving seniors and the disabled far beyond federal Americans with Disabilities Act parameters.

While DelDOT understands that between 2000 and 2030 Delaware's population is projected to grow over 32%, it does not have sufficient funding to meet current needs, let alone construct for the future.  There is funding in the current fiscal year only to provide basic maintenance and to continue projects already under construction or contract.

With limited revenues, Secretary of Transportation Carolann Wicks has determined that DelDOT must focus on its core business needs: people and assets.  Her first priority is to provide that DelDOT staff is well-trained and that the agency has efficient processes and makes good use of technology.  Her second priority is to maintain current assets, including supporting the Pavement Resurfacing and Rehabilitation Program, replacing heavy equipment such as snowplows, replacing buses, and preserving bridges.  Priority three is to maximize the use of federal funds.  With a typical federal/state percentage split of 80/20, and only 30% of Delaware roadways federally-eligible, DelDOT must ensure that the State match for federal dollars is there.  At the same time, DelDOT must allocate resources to the 70% of Delaware roadways dependent entirely upon State funding.

In looking beyond the FY 2007 "baseline of projects," Secretary Wicks has indicated that DelDOT will have to "right-size" its capital improvement program and "revisit the prioritization process" to match its resources.  The focus will have to be on the safety of our roadways and roadside environments, congestion at major bottlenecks, and a multi-modal approach to solutions.

What that "right size" will be will depend upon whether or not the Administration and General Assembly step up and increase existing revenue sources in the Transportation Trust Fund, identify new revenue sources, and/or transfer DelDOT operating funds (now approximately $200,000/year) back to the General Fund (from which they were "temporarily transferred" beginning in 1991).  While surveys show that residents are willing to increase fees to provide for new needed construction, especially to address congestion, members of the General Assembly remain afraid to approve needed increases in these fees, even those like the $20 registration fee which remains among the lowest in the nation.

In the mean time, projects essential both to economic development and to maintaining a good quality of life in Delaware remain on hold.  The most embarrassing, of course, is I-95 because of the backup for everyone who passes through Delaware on the interstate.  Delaware is developing a reputation as a dysfunctional state among all who travel through the I-95 toll booths and the I-95/Route 1 intersection.  While Delawareans know they can get off I-95 South at Route 273 and follow Route 4 to Elkton Road then back to I-95 South far faster than they can go the short distance that should take 3 minutes, but often takes 40, out-of-staters just have to sit in traffic and swear at the State's dysfunction.  Funding for the plan for high-speed EZ pass lanes and new toll booths as well as the I-95/Route 1 intersection–plus all the other projects essential to easing congestion and facilitating economic development in the State–await General Assembly action to permanently and substantively increase funding for the Transportation Trust Fund.

Economic Development Partner

The Greater Wilmington Convention & Visitors Bureau (GWCVB), under the leadership of Executive Director J. Harry Feldman, has become a much more effective organization in the economic development arena.  In addition to providing information to prospective tourists, meeting attendees, and other potential visitors to the Wilmington/New Castle County area, the GWCVB, under J. Harry's guidance, has produced programs and materials which show the advantages of being in our area, not just visiting.  Recently the GWCVB provided packets on the cultural advantages of the area which The Committee of 100 included in materials we gave to a company considering investing in Delaware.  If you, or your business, want to show off our area to prospective clients or businesses considering our area, or need meeting-place information, you'll find a good economic development partner in the GWCVB.

Beverley Baxter