Earlier today, the Caesar Rodney Institute (CRI) released its new report on the state of the state, and the numbers are pretty damning for Democratic Governor Jack Markell. Just like the rest of the nation, Delaware's economy is in shambles, schools fail to educate and the state government is bloated by a tax then spend mentality.
Since Governor Markell's inauguration Delaware has lost at a minimum of 15,000 jobs bringing its unemployment rate down 3.6 percent. Hiring in Delaware continues to be anemic at best with hiring down -2826, and that is with a smaller workforce. It is also important to note that this trend mirrors the national economy and blame also belongs to fellow Democratic President Barack Obama who like Governor Markell suffer from perpetual incompetence on running a government.
With the state government being the largest employer, and the financial firms followed behind the headwinds for Delaware look questionable for Delaware. Delaware's bloated balance sheet continues to drag down its competitiveness amongst better run states like South Carolina and Texas which enjoy employers announcing new start ups or new operations there. The financial sector in Delaware is up in the air with announced bank layoffs hovering over 150,000 nationwide. What than means for Bank of America (acquired MBNA in 2006 and announced over 40,000 layoffs); Citi (announced layoffs of 4,500); and Barclays (announced layoffs of 2,800) is uncertain. All three banks have operations centers in Delaware employing thousands.
For Governor Markell who was an executive at Nextel, and Alan Levin (former CEO of Happy Harry's and head of the state's economic development office), Delaware's economic record has been underwhelming. For two executives to have performed this badly and not being able to sell Delaware as a place to live and do business, this has to be telling of the failed liberal economic philosophy.
Could it be that Delaware's economy is just to big to attract new businesses?
Could it be that Delaware's business regulations are too toxic for entrepreneurs to risk capital to start their own businesses?
Could it be that Delaware's education system is not educating its students to the risk that businesses don't feel we have an workforce worthy of employing? According to the CRI report, Delaware's public schools, for the dollars spent, are failing to do just that. High school students are failing to pass basic math, reading and science metrics. SAT scores are down statewide. Governor Markell has embraced Race to the Top, but the scores prove its more like race to the bottom.
For Governor Markell who attracted scores of Republicans in his 2008 victory and appointed Republican Alan Levin, why haven't they explored more conservative ideas such as right to work to bring in new employers? Why did Governor Markell reject Hyundai Motor's request to buy the defunct Newark Chrysler plant because they wanted a right-to-work provision over hiring union labor?
Political ideology has mired Delaware's economy to be continually anemic for over two decades and it is time it comes to an end. The current trajectory of stagnant economic growth, high employment, higher government unfunded liabilities and higher taxes is causing Delaware to be as attractive as the fat kid with acne. Simply put, until Delaware gets its fiscal house in order, educates its students on substance and promotes opportunity over dependence; Delaware will continue to lag behind pro-growth states.
In 2012, We Have Options
Any person who has performed this poorly in the private sector surely would be thrown out on their backside and Delawareans must do the same to Governor Markell. Maybe it is time Delaware elect an actual business owner likely declared GOP candidate Jeff Cragg who has owned multiple businesses in northern Delaware. Unlike Markell, Cragg actually believes in free-markets and his businesses continue to weather the storm despite headwinds put in by national and Delaware progressives to turn this nation and this state into a third world banana republic.
The question every Delawarean voter is are you better off today then were on January 20, 2009? Are you better off today than you were twenty years ago, when the last Republican governor ran Delaware?
Showing posts with label Governor Markell. Show all posts
Showing posts with label Governor Markell. Show all posts
Monday, January 16, 2012
Wednesday, May 4, 2011
Delaware House Bill 86: End RGGI (Cap & Trade)
For those that are not aware, Delaware is part of a Regional Greenhouse Gas Initiative. This initiative is simply, Cap and Trade, but done regionally by member states. Delaware has been a part of the RGGI since 2008 when Senate Bill 263 was signed by former Governor Ruth Ann Minner.
Simply put, Delaware's participation in RGGI has failed Delaware's economy. Cesar Rodney Institute has eloquently articulated and championed House Bill 86 to force Delaware's withdrawal from RGGI. The basis for the withdrawal hinge on higher energy cost for Delaware and its citizens, lack of transparency over RGGI funds, and the ineffectiveness to acheivement environmental standards as promised.
This is a call to action as well. Every Delawarean citizen must call their Delaware State Representative and Senator to approve the passage of House Bill 86. Continued pressure must also be done to persaude Governor Markell, who enthusiastically champions Delaware's participation in RGGI. Apparently, Markell failed to witness the defeat of former Congressman Mike Castle, of which his support for Cap and Trade in Washington was a catalyst for his defeat.
Read House Bill 86 here.
Simply put, Delaware's participation in RGGI has failed Delaware's economy. Cesar Rodney Institute has eloquently articulated and championed House Bill 86 to force Delaware's withdrawal from RGGI. The basis for the withdrawal hinge on higher energy cost for Delaware and its citizens, lack of transparency over RGGI funds, and the ineffectiveness to acheivement environmental standards as promised.
This is a call to action as well. Every Delawarean citizen must call their Delaware State Representative and Senator to approve the passage of House Bill 86. Continued pressure must also be done to persaude Governor Markell, who enthusiastically champions Delaware's participation in RGGI. Apparently, Markell failed to witness the defeat of former Congressman Mike Castle, of which his support for Cap and Trade in Washington was a catalyst for his defeat.
Read House Bill 86 here.
Labels:
Cap and Trade,
Governor Markell,
RGGI
Friday, February 18, 2011
Beleagured DelDOT Secretary Wicks Resigns
DelDOT Secretary Carolann Wicks who as head of the state transportation agency amid highly questionable land deals and agency mismanagement has resigned. According to her statement, she wants to retire and spend more time with her family.
Wicks departs on March 18th amid scrutiny over multiple land deals in Sussex County over payment to not build on the land to two separate developers. Blue Hen Conservative reported on this earlier.
Wicks also has received extensive scrutiny over fiscal mismanagement of the 2,600 person agency with a budget near $1 Billion, yet the department had a shortfall for much need road projects.
Governor Jack Markell stated that search most likely outside of Delaware will occur to replace Wicks.
Wicks departs on March 18th amid scrutiny over multiple land deals in Sussex County over payment to not build on the land to two separate developers. Blue Hen Conservative reported on this earlier.
Wicks also has received extensive scrutiny over fiscal mismanagement of the 2,600 person agency with a budget near $1 Billion, yet the department had a shortfall for much need road projects.
Governor Jack Markell stated that search most likely outside of Delaware will occur to replace Wicks.
Labels:
DELDOT,
Governor Markell
Monday, January 31, 2011
Delaware GOP House Leaders ask Markell to "Fundamentally Reassess" DelDOT
Delaware House Minority Leader Greg Lavelle (R) and House Minority Whip Gerald Hocker (R) have submitted a letter to Governor Jack Markell asking him to "fundamentally reassess" DelDOT.
The Delaware Department of Transportation has been in the cross hairs due to questionable land deals and poor fiscal management.
The Delaware Department of Transportation has been in the cross hairs due to questionable land deals and poor fiscal management.
Thursday, January 20, 2011
Analysis of Gov. Markell's 2011 State of the State Address
Today's Delaware State of the State Address highlights very fundamental confusion by the Markell Administration on how to fix Delaware's ailing economy, schools and transportation departments. Let's address these one-by-one:
Markell Proposes Job Creation Infrastructure Investment Fund
The entire premise behind this concept hinges on offering tax credits. Rather than utilizing more taxpayer funds for this fund, why not just lower the corporate tax rate? Delaware's corporate tax rate as of 2010 stands at 8.7 percent. Regional competitors such as Virginia offer a corporate tax rate of 6.0%, which is more business friendly.
Another recommendation is to reduce and eliminate the gross receipt tax. This tax punishes businesses, as it taxes them on goods produced or services rendered in the state. Punishing businesses on what they must do to thrive is a deterrent to stay in business and create jobs.
Announcement of Joint Effort with Delaware Manufacturing Association
Only after General Motors, Chrysler and Valero shut down operations and shed thousands of manufacturing jobs does the light bulb go off with the Markell Administration. Talk about being a day late and a dollar short.
While this is a step in the right direction, this is a reactive measure by an administration that was elevated to office by union labor that was employed at at least GM and Chrysler. Where was this administration when they were losing their jobs?
Education Proposals on Language Requirement and Science/Technology/Engineering/Math Focus
Governor Markell should be commended for realizing that educating Delaware's children is a driving factor to having a workforce that businesses want to hire. The language requirement is essential to have a workforce competent of global perspective and conversant with another non-English nation. While Delaware may be home to several non-US businesses (e.g. Astra Zeneca) it does have businesses that conduct business globally. This is step in the right direction.
Markell's second proposal to create Science, Technology, Engineering and Mathematics was sorely need and refreshing to read and hear. This focus has been long overdue and there is no reason why Delaware cannot be a STEM hub to complement what the chemical giants have done to make Delaware home.
State Employees Health Care and Pension Cost Obligations
With the revealing that taxpayers have been bearing the burden of the explosive health care and pension cost obligations, Delaware leaders can now focus on reducing this burden. It was very startling to hear that the health care burden by taxpayers explode by 594% and the pension costs exploded by 257%. This clearly is unacceptable.
Delaware needs to address health care costs by increasing competition by allowing more health insurers to compete in Delaware, implementing tort reform and asking state employees to share the health care cost burden just like it done in the public sector. It is not fair for private citizens to fund their own health care for themselves and also that of the state employees. For this, the state must act like a business and ask employees to share more of the cost after they improve competition and availability of more choices for health care coverage via the private sector.
Markell must make a stand and reject Obamacare. Join the other twenty-six states and demand that we inject state reforms on health care to diffuse the unconstitutional federal government mandate. This issue commands leadership, and now is the time. Compel Attorney General Beau Biden to do his constitutional job and invoke nullification of Obamacare, for this legislation is violation of the U.S. Constitution on the mandate requirement.
The explosive pension cost burden borne by taxpayers is no different. It is not fair that private citizens must finance their own retirement and that of state employees. Delaware must do a multitude of things to address this problem. The first is to switch from a defined benefit pension plan to a defined contribution plan where state employees contribute to their retirement. This is the same decision many private sectors firms faced, and government employees should be no different.
Markell must renegotiate all union employee contracts to reign in employee costs. Consult with New Jersey Governor Chris Christie on tactics on how to negotiate with the DSEA and other unions. It won't be easy, but it must be done.
Conclusion
Delaware's fiscal picture is bleak due to state health care, Medicare and pension cost obligations. Delaware'[s schools need reforming. While recognition of these areas is a first step to recovery, the road to sanity is a long one. The time for tough and unpleasant decisions is now. The time of the public's financing of fiscal recklessness and failed leadership is over.
Markell Proposes Job Creation Infrastructure Investment Fund
The entire premise behind this concept hinges on offering tax credits. Rather than utilizing more taxpayer funds for this fund, why not just lower the corporate tax rate? Delaware's corporate tax rate as of 2010 stands at 8.7 percent. Regional competitors such as Virginia offer a corporate tax rate of 6.0%, which is more business friendly.
Another recommendation is to reduce and eliminate the gross receipt tax. This tax punishes businesses, as it taxes them on goods produced or services rendered in the state. Punishing businesses on what they must do to thrive is a deterrent to stay in business and create jobs.
Announcement of Joint Effort with Delaware Manufacturing Association
Only after General Motors, Chrysler and Valero shut down operations and shed thousands of manufacturing jobs does the light bulb go off with the Markell Administration. Talk about being a day late and a dollar short.
While this is a step in the right direction, this is a reactive measure by an administration that was elevated to office by union labor that was employed at at least GM and Chrysler. Where was this administration when they were losing their jobs?
Education Proposals on Language Requirement and Science/Technology/Engineering/Math Focus
Governor Markell should be commended for realizing that educating Delaware's children is a driving factor to having a workforce that businesses want to hire. The language requirement is essential to have a workforce competent of global perspective and conversant with another non-English nation. While Delaware may be home to several non-US businesses (e.g. Astra Zeneca) it does have businesses that conduct business globally. This is step in the right direction.
Markell's second proposal to create Science, Technology, Engineering and Mathematics was sorely need and refreshing to read and hear. This focus has been long overdue and there is no reason why Delaware cannot be a STEM hub to complement what the chemical giants have done to make Delaware home.
State Employees Health Care and Pension Cost Obligations
With the revealing that taxpayers have been bearing the burden of the explosive health care and pension cost obligations, Delaware leaders can now focus on reducing this burden. It was very startling to hear that the health care burden by taxpayers explode by 594% and the pension costs exploded by 257%. This clearly is unacceptable.
Delaware needs to address health care costs by increasing competition by allowing more health insurers to compete in Delaware, implementing tort reform and asking state employees to share the health care cost burden just like it done in the public sector. It is not fair for private citizens to fund their own health care for themselves and also that of the state employees. For this, the state must act like a business and ask employees to share more of the cost after they improve competition and availability of more choices for health care coverage via the private sector.
Markell must make a stand and reject Obamacare. Join the other twenty-six states and demand that we inject state reforms on health care to diffuse the unconstitutional federal government mandate. This issue commands leadership, and now is the time. Compel Attorney General Beau Biden to do his constitutional job and invoke nullification of Obamacare, for this legislation is violation of the U.S. Constitution on the mandate requirement.
The explosive pension cost burden borne by taxpayers is no different. It is not fair that private citizens must finance their own retirement and that of state employees. Delaware must do a multitude of things to address this problem. The first is to switch from a defined benefit pension plan to a defined contribution plan where state employees contribute to their retirement. This is the same decision many private sectors firms faced, and government employees should be no different.
Markell must renegotiate all union employee contracts to reign in employee costs. Consult with New Jersey Governor Chris Christie on tactics on how to negotiate with the DSEA and other unions. It won't be easy, but it must be done.
Conclusion
Delaware's fiscal picture is bleak due to state health care, Medicare and pension cost obligations. Delaware'[s schools need reforming. While recognition of these areas is a first step to recovery, the road to sanity is a long one. The time for tough and unpleasant decisions is now. The time of the public's financing of fiscal recklessness and failed leadership is over.
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