Has Delaware’s 2010 Biggest Political Blunder Already Taken Place?

Filed in National by on January 4, 2010

Unless there’s an even bigger example of political and policy stupidity waiting in the wings, the answer is Yes, and it was announced in December of 2009.

This example of political and public policy malpractice, unless reversed, will likely lead to the Democrats losing control of the State House of Representatives. And it will be on merit. More specifically, proof that the serial cellar-dwellers do not deserve to actually run the place, mainly because they refuse to govern as Democrats. After all, there’s a reason why they languished in the minority for 24 years. And, despite languishing, there was never a serious challenge to their alleged political mastermind, Bob Gilligan. But, I’m getting ahead of myself.

You may have missed it, but Unstable Isotope blogged about the meeting where this losers’ strategy was unveiled.

The mind boggles at what Speaker Gilligan said at this Progressive Democrats of Delaware meeting:

Gilligan told us that they expect at least a $300M-$400M budget gap next year (that’s before the additional job losses in Delaware City were announced) and and he said point blank that they are not going to raise taxes again. Therefore the budget gap is going to be closed by slashing programs. He didn’t know if state workers were going to take another hit, but he thought that they probably wouldn’t get their pay cut back next year. The state programs mentioned by Gilligan were the following:

Medicaid – Gilligan discussed the “Missouri solution” which was to toughen Medicaid eligibility
Universities – Gilligan said that three state universities were a lot for a state with a population of less than 1M people.
SEED – Gilligan stated that the state now pays for 15 years of school: full day Kindergarten, grades 1-12 and 2 years of college at Del Tech.
Parks – Gilligan stated that the state took over some of the city/county parks in the last decade which has added to the budget woes.

I don’t know if Speaker Gilligan is speaking for himself, his caucus, or for the Governor.

But I do know that this is a one-way ticket to political Palookaville if ever I saw one. The people who got screwed the most in 2009 are gonna get even more royally screwed in 2010. Oh, and they just happen to be core groups of a Democratic electoral coalition.  Brilliant. Do any of these elected officials actually spend time in their districts anymore listening to their constituents, or do they all now have places down in Fenwick?

This is a public policy disaster because the very services that Gilligan says are earmarked for cuts are precisely the kind of services that people need. Especially Democratic people. Especially during an economic downturn. Cut health care for the poor? Check. Deny students the chance to get an education, including college, even if they can’t afford one? Check. Cutting back on education creating a less-prepared workforce to lead us out of recession and to make Delaware more competitive? Check. Continuing to screw state workers? Check.

And these are merely the cuts that Gilligan has discussed publicly. You can bet that there’ll be others, which means that those who depend on state services, primarily Democrats, will fall through the safety net.   This means that, for two consecutive years, a Democratic administration and an allegedly Democratic General Assembly plan to balance the budget on the backs of its core constituents. Sheer genius. You can bet that working people just can’t wait to go to the polls to thank the Honorables for screwing them. And Gilligan is saying it openly a year before the election. Because, of course, there is simply no other way to help balance the budget. Except that there is, and everybody knows it.

And that’s why this is also a political disaster waiting to happen. Even before the General Assembly reconvenes, Bob Gilligan has announced that his Caucus is unilaterally disarming itself from its most powerful weapon from both a policy and political standpoint. That weapon is restoring progressivity to the Delaware Tax Code by increasing PIT rates for those making over (give or take) $100,000/year.

Delaware now has a flat tax for those earning over $60,000 annually. It wasn’t always this way. Starting with Steve Forbes’ doppelganger, Crazy Uncle Pierre (whose family benefited more than anyone else), and continuing through the administrations of Metamucil Mike and Robocarper, the top rates were cut and consolidated to the point where the To the Manor Born set pays the same rate on its income as do police, firefighters, and most middle-class professionals. Simply put, all the progressivity has been wrung from Delaware’s Tax Code, and the only people who have benefited are the very wealthy. That may have been OK during the go-go boom times, when Delaware’s economy was literally built on a house of (credit) cards, but it is unconscionable today.

Yet here we have the Democratic Speaker of the House proclaiming that all tax hikes are off the table. And they should be off the table for those in the middle class and working poor who are suffering from the double whammy of increased taxes and fewer services. But to not raise taxes on those who have gamed the system for 30 years now is, I don’t know any other word for it, stupid.

Look at the politics. D’s propose restoring progressivity to the tax code by raising the brackets on the well-to-do. Maybe it passes (I think it ultimately would), maybe it doesn’t. Either way, Dems have their issue: Times were bad, everybody had to sacrifice, and the bluebloods were finally made to share in that sacrifice. That’s one way to get D voters out in November, by letting them know that their legislators really are on their side.

From a Rethug standpoint, this is their worst nightmare. We already know, based on last June’s antics, that the R’s will try to get away with doing nothing,  and simply lay the blame on the D’s. Dick Cathcart will once again be crying crocodile tears for state workers. And he can get away with it if D’s don’t call their bluff.  OK, call their bluff, Speaker Gilligan:  “Stand with us in protecting those who have been hardest hit by requiring those who have had it real good to sacrifice for the common good.”

The House R’s would then have two choices: grudgingly free up enough votes for some sort of tax on the wealthy, or face the blame for budgetary gridlock by refusing to ask the silverspoonistas to ante up a bit of their filthy lucre. Either way, it’s a political lose for them. Contributions from the Greenville crowd that bankrolls all their campaigns slow, and/or they are forced to explain why the privileged  few are immune from sacrificing anything, unlike everybody else.  And the D’s should stand firm on this. Don’t compromise it to death. There will still have to be cuts, but this will generate a significant amount of revenue, improve the Ds electoral chances, and let everyone know that they’re not just paying lip service to their core constituencies.

Failing that, the D’s will have to seek reelection on the theme of  “We made the tough decisions that had to be made.” And that’s true, to an extent.

But if they lose their House majority, it will be because they didn’t make the easy choices that were staring them in the face. At least their staff now has experience in moving the furniture. And it’s all downhill to the basement.

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  1. Some Back-up For “El” « kavips | January 6, 2010
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  1. Brooke says:

    Completely agree, El Som. Let’s hope we can get the elected officials on-board.

  2. anon says:

    Agreed about progressive taxes.

    Gilligan’s list normally would be the “scare” list: “Here’s what we have to cut if we don’t raise taxes.” Normally this is what you say to bring Repubs to the table on tax increases. But by taking tax increases off the table, he botched the tactic.

    Dems should call Republicans’ bluff, but first get into a stronger position, a couple of ways:

    1. Enact some tough Democratic spending cuts (i.e., not Gilligan’s list). We have to do it anyway by June, so why not do it early and do it our way, rather than appearing to do it under Repub pressure?

    2. The first round of cuts won’t be enough, so challenge Repubs to come up with more spending cuts and hang the cuts around their necks. Repubs are always crying about spending cuts, so force them to run on a platform of specific cuts.

    When you ask Repubs about spending cuts, they never respond by suggesting specific programs and services to be cut. Instead, they have this miasma of ideas for “savings” that don’t actually cut any services. When it comes to making hard decisions about cutting programs and services, they expect Dems to take the heat.

    3. Co-opt some of their talking points. Here’s one: They are always going on about the purchasing system, and the waste and lack of accountability with the checkwriting and credit cards. Well, don’t look now but Delaware has a new accounting system initiated by Democrats; when the hell is that coming on line? When it does, Markell needs to create a web site to analyze and loudly brag about the savings. Do it before Repubs claim it was their idea.

    4. Get some more Federal money in here to help out the counties and the state. Take credit for it, making reference to specific services that Repubs wanted to cut but were saved by Dems.

    5. About the time Delaware is figuring out its budget this spring, Washington will wake up and confront the expiration of the Bush tax cuts. Assuming Obama decides to keep his campaign promise to keep the cuts for the middle class (not a sure thing by any stretch), at that time Congress will be debating a specific bill that cuts taxes fo the middle class but includes no cuts for the rich. Dems in Congress will have the good fortune to be sponsoring a tax cut bill; all they have to do is dodge mischevious Repub amendments to add back cuts for the rich.

    The point is, this summer the nation will (hopefully) be debating how much more the rich should be taxed. Delaware should be mirroring that debate. Unortunately we will be debating a tax increase bill rather than a tax cut bill, but those are the breaks.

  3. I absolutely agree with a millionaire’s tax and polls have shown this idea is popular with voters. I don’t know why we’re not pursuing it. Hopefully some Democrats will make some noise about this.

    I like anon’s idea as well about how to get ahead of the Republicans.

  4. anon says:

    Millionaire’s tax, OK – just a little bit though. We want them to pay their share but we don’t want them to leave.

    The main thing is to have some progressive brackets. For example, bankers making $100-250K have benefited nicely from the tax incentive money and deferments Delaware shovels to banks, but for people under $100K all they get is the bill. Yet they all pay the same tax rate.

    Same goes for other industries like pharma.

  5. Geezer says:

    I agree with everything but the dire forecast of losing a House Democratic majority. El Som, does your crystal ball see certain D incumbents in trouble?

  6. Geezer, I’ve been through enough of these cycles to have seen years where disparity in voter turnout among the two parties was enough to swing the election firmly one way or the other. Actually, when the D’s won the State House of Reps in 1982, it was totally unexpected, even by them. But the weather was unseasonably warm, every statewide D won except Dave Levinson against Bill Roth (and he came pretty close), and there was a D tide. Of course, the R’s took it back in 1984.

    My point is that when momentum like that gets going, sometimes the good goes out with the bad. It happened in ’08 to an extent, with a couple of undistinguished D’s running marginal campaigns getting swept along with the tide. And I do see enough prospective races which, if there’s that type of wave, could flip the House. Especially if D’s feel no reason to vote for the person who raised their taxes, cut their benefits, and/or cut programs that they use.

  7. Dana Garrett says:

    Here, here! Well said! I agree w/ you 100%.

    The real question is why are the Dems prepared to protect the rich from progressive (fair) taxation. What is up w/ that?

  8. the cajun says:

    All this crap is working my last gay nerve. Have Dems forgotten what they stand for? Apparently, so. No matter how loud we make our point, they will not do what they know progressives want.

    Attempting to be all things to all people never works out and is the real reason they’ve spent two decades in the wilderness.

    Thanks for this…I guess. 😉

  9. I agree. I hope Democrats go to the mat to raise taxes right before an election. I hope house Dems shut down the government. I hope they contradict their own governor. It will be a sure fire winner. They need to listen to your wisdom.

  10. Brian Shields says:

    Does UD really need state money to function, or can they tighten the belts for a year and actually be self-sufficient? With the tuition they charge they should be able to sustain themselves.

    I was surprised SEED didn’t get chopped last year.

    Medicare tightening is a scare tactic, like the 8% paycut last year. Noone wants to piss off the largest voting block in an election year, Calling their bluff.

    Parks: the state has been shedding commitments to the counties for the last few years. Ambulance budgets are a prime example. a 50/50 split is somewhere near 60/40 or 70/30 right now with the brunt on the counties.

    Oh.. and I am willing to bet alot of the temporary budget cuts from last year are back in, artificially inflating the budget yet again. Like budgeting for school building, etc. Stuff that was cut that wasn’t vital, but needed eventually.

  11. anon says:

    I hope Democrats go to the mat to raise taxes right before an election.

    One thing is for sure, Republicans won’t be naming any specific programs that should be cut. They’ll just whine about spending like it’s someone else’s responsibility. Dems have never been very skilled at calling them out on it though.

  12. Joanne Christian says:

    Don’t even get me going about the SEED program–I heralded that boondoggle expense for 75% of the recipients last year. Took it to Dover, w/ numbers and the nod of any and all I spoke with on both sides of the aisle. But it’s the golden goose of higher ed system in Delaware and is going to blaze the justification for DelTech to grub at property/ed taxes in the expansion market–and that is a powerful aphrodisiac for higher ed to donate to campaigns. You guys can connect the dots better than I can. I deal in real numbers, they deal in projected campaign support and donations.

    But, how can we justify footing the bill of a very WELL INTENTIONED college opportunity program gone awry? It was a gift, on the surface appeared and still touted as opportunity for the Delaware HS graduate, 2.5 GPA, no problem w/ the law to make that bridge that may not have been available to attend college for 2 years. The reality–first a student must apply thru FAFSA, achieve eligibility, and then Delaware picks up from there. Now hang on. This was NEVER to be for remedial courses. These kids were to be college ready–financially unsure. But we are picking up the tab for remedial courses. And the biggest oofah? Illegal immigrants are eligible for the program. So there you have it—and Nancy Willing will appear to ready the noose!! I repeat, as I have before, will not deny services to a minor child–but college? You are an adult now…it is time to get the adult rule book, and get on the road to legality…pronto.
    The notion that all institutions of higher ed weren’t included in this program stymies me–I’m sure they would have accepted a negotiated rate if tuition was the factor. And lastly, I watch the bottlenecking of programs that either focused adult learners are prepared to enter, or young adult learners on a timetable being shafted, and held up due to the hyper-enrollment of the SEED force. Oh, and why oh why is their not some “good faith” expectation of the enrollee, if they drop out, fail out or not even attend their classes? I have YET to meet ONE graduate of SEED–pure SEED–not the ol’ MBNA program…or other hybrid. But Delaware has sunk millions into this. Cut it from the budget–LAST YEAR SHOULD OF–let those who really are active learners finish up. Remedial, and repeat course workers, illegal immigrants–can find the help elsewhere, on somebody else’s tab.
    Such a shame–It could have been something Minner’s legacy could have been proud of–but once again adulterated into a money pit of political alliance. And you know who you are–who won’t touch this one!!!

  13. Brooke says:

    Well, Joanne, I can contradict all that, from my own experience. I know several kids, including one of mine, who used the SEED scholarship. It didn’t pay for remedial courses, and it didn’t pay for courses outside the major track. Student had to be enrolled for at least 12 credits per semester and in good standing. For the kids who failed out (and I knew a couple) the scholarship money had to be paid back.

    My son was Presidents list. He had straight A’s the semester he had 15 advanced credits, 35 hours+ a week in his vocation AND worked two jobs to pay for his books and lab fees. He worked his TAIL off, fortunate to have some of the most committed, caring, and exacting teachers I’ve ever seen at any level, public or private. And he would not have been in college except for the SEED program.

    He’s working on the west coast now. If he’s home I’ll tell him you want to meet him.

  14. Joanne wrote: “Such a shame–It could have been something Minner’s legacy could have been proud of–but once again adulterated into a money pit of political alliance. And you know who you are–who won’t touch this one!!!”

    C’mon, Joanne, don’t leave us hanging, OUT with it.

    Are you talking Del-Tech, where Minner’s Chief of Staff has landed as Lonnie George’s #2?

    It’s not like you to be so cryptic.

  15. Joanne Christian says:

    Brooke–I’d love to meet him–to vindicate the very earnest, well intended nature of this program. He sounds like the poster child of all I WOULD SUPPORT, and was hoping was launched. Unfortunately, this great vine, with your son as a bloom no doubt–has turned into a WEED.

    That’s it –it’s the WEED program now!!!

    No seriously Brooke, I’m glad he was able to opportune himself of this. Did he do the full 2 years, or launch elsewhere before working the west coast?

    Som–I’m not cryptic–just tired of beating this drum. Scoop all you want–it’s the elephant in the room, to the budget’s woe.

  16. Brooke says:

    60 solid gold credits. Our deal, before he was permitted to pursue his dream full-time. And he finished December 2008, so the program can’t have fallen too far in the intervening.

    If you look at the major requirements, you’ll see what one of the problems with the program is. Track calls for 18-19 credit hours, some semesters, but they won’t let you register for that many. Leads to holes that have to be covered in extra years at student expense, and some of these kids just don’t have the time or money to do that.

    look. You’ll see.

  17. Suzanne says:

    I don’t recall having a problem taking 6 classes at a time at Del Tech for 18 to 19 credits. Not in Sussex anyway.

    Joanne -I want to know how illegal immigrants can make it past the FAFSA – you have to provide a copy of your tax return or parents tax return. Is that just stuff you hear and repeat or do you have actual proof

  18. Brian Shields says:

    Brooke has a point. Many of DelTech’s 2 year programs are very unachievable in 2 years unless you are fully financed… which you aren’t if you are going to DelTech in the first place.

    It is not unusual to have a 20 credit suggested semester curriculum. That’s 20 classroom hours a week, which is supposed to have at a minimum, 20-30 hours of study to accompany it.

    Mix that into a weird schedule of evening and afternoon classes, morning classes, jammed into a M-R and there is no way in hell you are working part time through the weekend and having any good grades come of it.

    I know, I have done it, while working full time. Ended up losing my marriage because of it. Well, let’s just say it was a contributing factor.

    My point is that the typical DelTech college student can’t afford to follow Del Tech’s curriculum as proposed, and 90% of the time will take a 3rd year to achieve a 2 year degree.

  19. Mark H says:

    I don’t know Brian, I took 5 classes one semester (20 credits) while working full time at DCC, but I certainly wouldn’t advise it for anyone. When I went there (Terry Campus) the course sequencing was the worst part as the 20 credit hour semester was only attempted because one of the classes I needed was only offered once a year.

  20. The Del-Tech points are good ones. It sure sounds like, if Del-Tech is truly committed to helping its students, then a ‘mend it, don’t end it’ approach is in order.

    Maybe one of their numerous current and former state legislators/bigwigs could run an in-house program to make sure that state funds are actually spent wisely and that students are able to navigate the academic waters in a safer, more cost-effective, and more rational fashion.

    If, of course, Del-Tech is truly committed to helping its students as opposed to maximizing an influx of SEED $$’s…

  21. Brooke says:

    For example, in my son’s major, requirement for AA included 2 semesters of internships, which they would NOT permit entrance to until all classwork otherwise was completed, and would NOT permit in semester with other classwork. The figure you’re working 20hrs a week and taking the class, that’s enough. So departmental policy makes the program run 3 years, no matter what it says on the transfer of credit matrix. I thought he’d gotten it wrong, until I went into meetings with these people myself.

    He needed special permission from the department head every semester, just to register for classes. I understand they don’t want their students to fail out, and they don’t want to compromise their relationship with interning sites, but it looks to me like an error built into the system.

    I have to repeat, though, the quality of teaching and advocacy from the teachers was outstanding.