The Committee of 100 | Meeting Notes

The bad news just seems to keep coming. Every DEFAC meeting results in another report from the Delaware Economic and Financial Advisory Council that Delaware's income projections must be lowered. DEFAC's December numbers project a $91 million shortfall for FY 2003 and $135 million for FY 2004. The biggest hits have been in personal, corporate, and franchise taxes. Looming, is the potential impact of competing slots promised by Pennsylvania and Maryland governors-elect Ed Rendell and Robert L. Ehrlich, Jr.

Each time Governor Ruth Ann Minner announces another round of budget cuts, the consensus is that the cuts must be made, the decisions have been sound, but it's still hard to take. Delaware isn't used to this.

The good news is that we're in a better place than most states. Those states that depend heavily upon sales tax, rely on a more monolithic income source, and/or have already spent their rainy day funds, expecting 2003 to be better, are really hurting. Delaware's more diverse income, its 98% rule, its rainy-day fund, and its ability to react quickly have held it in good stead.

Now add Judy McKinney-Cherry to the mix. Ruth Ann Minner appointed Judy Director of the Delaware Economic Development Office on October 10, 2002, just in time to deal not only with falling income, but also, with mounting job losses in the State. Judy brings to the job an understanding of economic development from both the public and private sectors. She spent ten years at DEDO as an Economic Development Program Manager and Director of the Federal/State Data Center Program before moving to the private sector with Info Systems where she variously served as Manager of the Dover Office; Manager of Corporate Sales; and Director of Regional Operations, Government, and External Affairs.

Judy will give us the latest on economic development prospects for Delaware as we enter 2003.