Issue link: https://digital.copcomm.com/i/109814
Legislative Update Governor puts spotlight on education he Governor continues to show that he understands the significance of education to Delaware���s quality of life and economic health, and the need for great schools for every child,��� commented DSEA President Frederika Jenner following the Governor���s budget presentation. ���T Governor Markell���s proposed budget includes funding for: ��� New teacher units to keep up with anticipated increases in student enrollment ��� Step increases for school employees for years of experience and degrees ��� Continued funding of the new para salary schedule whose goal is to bring the starting salary up to poverty level for a family of four by 2016 ��� Funding to allow districts to purchase what they need to implement their school safety plans earlier ��� Funding to hire 30 more mental health professionals for our middle schools, to go from 2 to 32. Next year the Governor anticipates funding for the remaining middle schools. In his State of the State address, Gov. Markell talked at some length about increasing the starting salary for teachers and finding ways to reward teachers in additional ways in order to keep them in the classroom. He talked about how Delaware has been for many years outpaced by our neighboring counties in teacher pay . He has since acknowledged that developing a different way to compensate teachers in order to make Delaware a more attractive place to work will require lots of discussion which has not yet started. We have lots of research, including what other state Associations have worked out with their legislators. Compensation must be improved in order to attract and retain high quality public education staff for our schools and state agencies. DSEA���s priorities include a starting salary for professionally certified school staff of $40,000; and rein- statement of the stipends for lead mentors and Nationally board certified teachers and specialists. ��� Businesses in the service sector with annual receipts under $7.6 million pay less under the Governor���s proposal; and ��� Businesses with annual receipts under $1.2 million generally pay no tax. Highlights of the Governor���s Recommended Budget, HB30 Operating Budget- Personnel ��� New Teacher Units -$8.7 million for 110 new teacher units in schools ��� Step Increases for school employees -$8.5 million ��� Paraprofessional Step Plan Phase II -$1.5 million to annualize salary increases ��� No pay raises Operating Budget- Non Personnel ��� $300,000 to accelerate development of school safety plans ��� $3.3 million in funding to increase the number of trained, front-line mental health personnel in our middle schools, a tenfold increase, from two to 32. Major Capital Projects ��� $74.9 million, for already approved referendum (Laurel, Seaford, Woodbridge, Red Clay) ��� $2.9 for pending referendum (Indian River) ��� $13.4 million for the Vo-Tech districts and the 100% state funded programs ��� $7.3 million for minor capital improvements ��� $160k for architecture barrier removal program Taxes Personal Income Tax Already reduced in 2012, the Governor���s proposal reduces the top personal income tax rate again. In 2009, the top personal income tax marginal rate (on income above $60,000) was increased from 5.95% to 6.95%. Effective January 2012, that rate was reduced to 6.75%. The Governor proposes dropping that rate further to 6.6% effective January 1, 2014. New Jersey is 8.97%; Maryland is 8.625%. 10 February 2013 DSEA ACTION! Corporate Franchise Tax In 2009, the corporate franchise top tax rate increased from $165,000 to $180,000. The Governor proposes keeping the current tax rate in place. Attorney General Beau Biden takes notes as members of the DSEA Exec. Board share with him their views on the balance between gun safety, school safety efforts (such as School Resource Officers), and mental health services. Most applauded the role of School Resource Officers as long as they are about helping and protecting, and not seen as policing and jailing. Members brought up many issues, including mandated, full-time counselors in all schools, intruder drills, glass and door safety, and communication as part of planning and training of school staffs. Adele Jones of Indian River told him, ���We must treat mental health issues early, or we will all suffer for it.��� Gross Receipts Tax In 2009, the gross receipts tax increased 8% across all business categories. Effective January 2012, rates were reduced by 3%, and the monthly exclusion was increased from $80,000/month to $100,000/month, removing 330 businesses from the tax rolls. The Governor proposes cutting the tax on manufacturers by 30% and dropping the gross receipts tax for all other businesses by another 1%, while maintaining the more generous $100,000 exclusion, effective January 1, 2014. Compared to the original sunset proposal, small businesses will fare better under the Governor���s package: To keep track of the bills DSEA is following, go to www.dsea.org/ PoliticalAction/BillSummaries.html. And for legislator contact information, go to /PoliticalAction/ Legislator ContactInfo.html. Estate Tax The Governor proposes lifting the sunset. Under the Governor's proposal, farms in the Aglands Preservation program will still be excluded from the tax. In 2011, the estate tax exemption increased from $3.5 million to $5.12 million to match the federal estate tax. The estate tax exemption would continue at $5.12 million under the Governor���s proposal. During February and March state agencies, unions, community organizations, businesses and members of the public will appear before the Joint Finance Committee (JFC) and the Bond Committee to encourage support, opposition or amendments to the Governor���s recommended budget bills. Ultimately, the Joint Finance and Bond Committees shape the budget. Education will be heard on February 13, 2013, and DSEA President Frederika Jenner will be there to testify. This is a time of rigorous debate, and the Joint Finance Committee may or may not incorporate what the Governor has recommended. www.dsea.org