Wednesday Daily Delawhere [3.25.15]
Above the Henlopen in Rehoboth. Photo by Sky Jack.
As the legal or corporate home for hundreds of thousands of businesses, Delaware is allowed to take intangible assets such as dormant checking and savings accounts, uncashed checks and unclaimed dividends and stocks after a certain number of years if the owners can’t be found. [...] But corporations that are required to turn over their unclaimed property have challenged Delaware’s enforcement methods, including estimating the amounts due when no actual records can be found. Meanwhile, only a fraction of companies subject to the escheat laws are complying with the reporting requirements. [Secretary of State] Bullock noted that while increased compliance might bring in more abandoned property revenue, technology has made it easier for companies to track ownership of the assets, meaning there likely will be less for the state to claim in the future. Meanwhile, the state also faces challenges when it comes to gambling revenue, as newer and bigger casinos in neighboring states continue to draw gamblers who used to come to Delaware’s three casinos, panel members were told. Lottery and gambling revenues contributed about $215 million to the general fund in fiscal 2014 but have declined steadily in recent years, with even more competition from other states on the horizon.So the budget gimmickry that has allowed Delaware to operate on a half-flat income tax structure for decades is coming to an end. So what are our options?
Schwartzkopf has said that he would oppose any repeal legislation that did not include exemptions for those inmates convicted of killing members of law enforcement, including correctional officers. Not including those exemptions would endanger every correctional officer working in the state's prisons, he said. He added that he offered amendments to repeal legislation last year, but those requests "fell on deaf ears." He said that compromise is needed on the bill. Peterson, he said, is not willing to compromise. "This building is bigger than one bill," Schwartzkopf said.This raises two questions: (1) Would Schwartzkopf take steps to ensure the bill's consideration if this compromise was accepted; and (2) is it worth it to have a repeal bill with these exceptions?