A STRONG STATE GOVERNMENT FINANCIAL POSITION:

  Delaware , in maintaining its fiscal stability, continues to have superior bond ratings. The following illustrates the progress that Delaware has made as well as our continuing commitment toward economic health and improved financial stability:

Adoption of constitutional limits on appropriations.

Establishment and full funding of a Budgetary Reserve Fund to ensure against unexpected revenue losses.

Adoption of a constitutional amendment requiring a 3/5 majority in both Houses of the General Assembly to increase existing State taxes or enact new taxes.

Ten reductions in State personal income tax rates, reducing the top rate from 19.8 percent  to 5.95 percent.

Triple A bond rating from all three Wall Street rating agencies; Standard and Poors, Moody's and Fitch.

Financing the State pension fund under actuarially sound accounting procedures increases the asset to liability funding ratio from 22.0 percent in 1976 to 100 percent in 1991.

Early repayment of the State's debt to the Federal Unemployment Trust Fund, thereby eliminating the 0.6 percent Federal Unemployment Insurance Tax penalty on Delaware employers.

Conversion to generally accepted accounting procedures by all State agencies.

Use of fees for State banking services instead of maintaining compensating balances.

STATE MAINTAINS A HEALTHY RESERVE:

Not only has the State maintained controls on expenditures, but Delaware 's spending limit now also automatically guarantees a continuing surplus. Delaware 's constitution requires the maintaining of a budgetary reserve fund equal to 5 percent of State estimated revenue for the next fiscal year. Access to this fund is possible only when there are unexpected revenue shortfalls or if there is a legislative reduction in tax rates.

The cumulative cash balance shown above consists of the Budget Reserve, or "Rainy Day Fund" built up from prior years, and the Excess Reserve.  The Excess or "Free" Reserve Fund must be used first to cover prior years' commitments and then may be used to pay for nonrecurring expenditures.  In Fiscal Year 1986, Delaware established a $40 million First State Improvement Fund from the State's cash surplus to be used primarily for capital projects.

SOURCES AND USES OF STATE FUNDS:

 To View Charts please click here

EXCELLENT DEBT MANAGEMENT:

Successful debt management involves the development and implementation of a comprehensive strategy to meet emerging capital funding needs consistent with sound fiscal management policies.  Recognizing the critical importance of controlling its debt, the State initiated a series of policies designed to centralize debt issuance and foster fiscal responsibility, including the elimination of short-term borrowing, provisions to prevent delaying or backloading debt obligations and debt authorization and issuance limits.

Delaware has implemented a number of significant debt and capital-related programs and strategies, as outlined below:

Centralized Oversight:  Centralize responsibility for State and Authority debt issuance under the Secretary of Finance.

Aggressive Retirement of General Obligation Debt:  The State voluntarily retires its General Obligation debt rapidly.  Approximately 80 percent of current general obligation is scheduled to mature within 10 years.

Strict Debt Limitations:  In 1991, the State instituted new debt limits, one of which restricts new debt authorizations to 5 percent of General Fund revenue as projected on June 30 for the next fiscal year.  The debt limit also effectively eliminates the use of any "off balance sheet" financing instruments.

Significant "Pay-As-You-Go" Financing:  The State has implemented and maintains a strong program of "pay-as-you-go" financing for capital projects.  A total of $895.8 million of available cash was appropriated for capital projects between fiscal 1989 and fiscal 1999, nearly 50 percent of the total amount of non-transportation capital projects authorized during the same period.

Extraordinary Debt Reduction:  Since 1995, the State has appropriated $155 million (in addition to its normal rapid debt retirement noted above) to reduce outstanding debt, saving over $150 million in future debt service payments.

Numerous Bond Refundings:  The State has undertaken a series of bond refundings that have lowered the overall debt service on outstanding State general obligation debt.

The result of these initiatives has been to reduce the rate of growth in Delaware 's debt burden, as depicted in the following three charts.

The State continues to maintain very high credit ratings. In March 2000, Moody's Investors Service, Standard and Poor's and Fitch  raised the State's general obligation bond rating to Aaa, AAA, and AAA, respectively, the highest ratings obtainable by a government jurisdiction and the highest in the State's history.  These ratings were reaffirmed for the Series 2001A general obligation issue in August 2001.

THE DELAWARE ECONOMIC DEVELOPMENT OFFICE:

 
The Delaware Economic Development Office was established in 1981 to lead the state's efforts in business development and tourism promotion.  The office's mission is to enhance the quality of life for all Delawareans by facilitating retention and creation of quality jobs.

99 Kings Highway

Dover , DE   19901

(302) 739-4271, (866) 284-7483 (phone)

(302) 739-5749 (fax)

http://www.state.de.us/dedo

Carvel State Office Building : 820 N. French Street

Wilmington , DE 19801

(302) 577-8477  (phone)

(302) 577-8499 (fax)

John D. Wik, Director

The Director of the Delaware Economic Development Office is appointed by the Governor and is assisted by four division directors. Director Wik was nominated and confirmed in January 2001.

BUSINESS DEVELOPMENT -- Karley Barnes, Director

The Business Development section works with existing businesses to encourage retention and expansion. The section also works to recruit quality firms and support the creation of new businesses that expand and diversify Delaware 's economic and employment base. Business Development can also provide assistance with permitting and regulatory issues.  Specialized divisions within the section include:

International Trade -- a one-stop resource for exporter assistance and international trade information; helps Delaware businesses with identifying international markets and exporting products; works to attract international businesses looking to expand into the U.S.

Workforce Development -- assists employers with recruitment, develops and underwrites training programs; provides information regarding the labor market, community resources and wages.

Business Research -- collects, analyzes and distributes statistical data on the state's economy and business climate; develops research in response to client concerns; includes the Delaware State Data Center .

Agricultural Products and Services -- works with Delaware 's agriculture community to further develop this industry sector.

BUSINESS FINANCE AND FINANCIAL SECTOR DEVELOPMENT -- Karley Barnes, Director

The Business Finance section offers several special financing programs to assist businesses that will add to Delaware 's employment base.

DELAWARE TOURISM OFFICE -- Cheryl Lahman, Director

The Delaware Tourism Office leads and coordinates the tourism industry's strategic efforts in the development and promotion of tourism. The Main Street Program, administered locally by the Delaware Tourism Office, is designed to improve economic management and public participation in America 's downtowns. The office's areas of focus include:

Development - develops partnerships between attractions that share audiences with similar interests to create a larger, connected set of themed attractions; individual attractions are encouraged to create long-range strategic and fund-raising plans that will result in sustainable development.

Marketing - encourages industry participation to attract leisure and group tour visitors.  Marketing communications primarily emphasize electronic outreach.  Printed publications function as a secondary resource. Relationships are developed with local, regional and national travel media to encourage positive coverage of Delaware 's attractions.

Promotion - works to improve understanding among residents and community leaders of the positive effects tourism has on Delaware 's economy and quality of life.

POLICY AND PLANNING -- Jim Lisa, Director

This unit is responsible for economic development policy, strategic planning, interagency coordination, cooperation between state and local governments, and legislative relations. This section includes internal operations such as:

Administration -- oversees the strategic planning process and other internal policy and planning initiatives.

Accounting -- administers the monetary and fiscal operations of the Delaware Economic Development Office; is also responsible for payroll, budget oversight, and record retention.

Personnel -- maintains personnel records, benefit information; oversees other human resources-related information.

Management Information Systems -- maintains the computer network within the Dover and Wilmington office; also has oversight approval of software usage.

  THE DELAWARE SMALL BUSINESS DEVELOPMENT CENTER (DSBDC) :

The DSBDC is designed to provide quality assistance to small businesses in order to promote growth, expansion, innovation, increased productivity and management improvement.  All management counseling is free and training program costs are minimal.  Business professionals who have owned their own businesses staff the DSBDC.  The staff also uses local business professionals to assist in counseling and training events.  The services of the DSBDC are available to any existing or prospective for-profit small business.

The DSBDC provides . . .

Basic Information

A Sounding Board for Ideas and Projects

Management Counseling

Training Seminars

Literature

The DSBDC is conveniently located at the following locations:

DSBDC                                                                       DSBDC

University of Delaware                                                 School of Management

Technology Park                                                           Delaware State University

One Innovation Way                                                     146 South Governors Ave.

Suite 301                                                                       Dover , DE   19904

Newark , DE   19711                                                     (302) 678-1555

(302) 831-1555                                                             Al Paoli, Director

Clinton Tymes, Director

DSBDC                                                                        DSBDC

Delaware Technical and Community College                   1318 North Market Street

103 West Pine Street                                                      Wilmington , DE   19801

Georgetown , DE   19947                                                (302) 571-1555

            William Pfaff, Director

Funding for the DSBDC is provided by the Small Business Administration, Delaware Economic Development Office, the University of Delaware, Delaware State University, Delaware Technical and Community College and other private and public sources.