Legislative Update

 
$15 per hour minimum wage bill passes State Senate:
Senate Bill 15, sponsored by Senator Jack Walsh (D-Stanton) passed the Senate on Thursday, March 18 by a party line vote of 14-7 and has been sent the House of Representatives where it has been assigned to the House Economic Development, Banking, Insurance & Commerce Committee.  The bill would increase Delaware’s minimum wage to $15 per hour in increments over a four year period as follows: 
            January 1, 2022           $10.50
            January 1, 2023           $11.75 
            January 1, 2024           $13.25 
            January 1, 2025           $15.00
 
The New Castle County Chamber of Commerce and other business groups testified in opposition to the bill when it was in the Senate Labor Committee citing the timing of the legislation and the disproportionate impact it will have on the hospitality and retail sectors which have been particularly hard-hit by the economic effects of the pandemic.
 
State revenue forecasts improve: 
At the Monday, March 15 meeting of the Delaware Economic and Financial Advisory Council, revenue forecasts for both the current fiscal year and next fiscal year improved over December’s estimates.  For the current fiscal year (FY 2021), projected revenue increased by $160 million.  For FY 2022, which begins July 1, the increase was $148 million.   
 
Increased personal income tax, corporate income tax, and corporate franchise tax receipts are credited for the positive projections.  This provides the General Assembly with additional funds to appropriate.  
 
Prior to these improved forecasts, the General Assembly had about $5.15 billion that they could appropriate.  The Governor’s Recommended Budget package calls for appropriating about $4.71 billion of that amount. 
 
President Biden signs stimulus bill: 
On Thursday, March 11, President Biden signed into law the $1.9 trillion stimulus and relief package, also known as the “American Rescue Plan Act of 2021.”  Major elements of the bill include up to $1,400-per-person stimulus payments that will send money to about 90% of households, a $300 federal boost to weekly jobless benefits, an expansion of the child tax credit of up to $3,600 per child and $350 billion in state and local aid, as well as billions of dollars for K-12 schools to help students return to the classroom, to assist small businesses hard-hit by the pandemic and for vaccine research, development and distribution. 
 
Delaware State government is slated to receive $1.25 billion from the bill. Counties and municipalities in our state will receive a little more than $305 million.  Information on guidelines for spending the funding is pending. 
 
U.S. House passes legislation extending PPP deadline:
Amid calls from small businesses and small business advocates to extend the March 31 deadline to apply for a Paycheck Protection Program loan, yesterday, the U.S. House of Representatives passed legislation last week extending the deadline to May 31, with a June 30 deadline set for the SBA to process the applications.  The legislation is now headed to the Senate.