State Chamber Update
The Delaware Economic and Financial Advisory Council (DEFAC) will have their December meeting this week. Traditionally this meeting produces the forecast on which the Governor will finalize his recommended budget, to be presented to the General Assembly in late January. It bears mentioning that previous DEFAC revenue forecasts confirm that Delaware receives approximately $1 billion per year from the corporate franchise fees. In addition, the State receives over $500 million annually from abandoned property (about 25% and 15% of the state’s $4 billion budget, respectively). And, not insignificantly, the State realizes added personal income tax (PIT) generated from the professionals who work in the businesses that support these revenue streams.
It is imperative that newly elected members of the General Assembly digest the significance of those numbers and take the necessary steps to protect the “Delaware brand” going forward. On a national level, we face attack via legislation from, for example, Senator Elizabeth Warren (D-MA) who promotes national incorporation of business, which would decimate Delaware’s budget in a single stroke.
News You Can Use
November Housing and Building permit data will be released Tuesday morning, Philadelphia Fed numbers on Wednesday and Personal Income and Consumer Spending numbers on Friday.