The News Journal had an article today regarding Monday’s December DEFAC meeting (Delaware’s tax receipt forecasting group). You will be forgiven if you missed it because the headline was unnecessarily generic:
Economists see hopeful signs for Del.
What the headline writer really meant, I think, was that the hopeful signs are only for Delaware’s governmental revenues. From the article:
[According to University of Delaware Economics Professor, Ken Lewis], ‘When you combine the lagging financial industry, the loss of manufacturing and the problems with the way Delaware levies taxes, Lewis doesn’t see the state recovering as quickly as the nation.”
This comment doesn’t seem particularly “hopeful”. The only “hopeful” comment was that State revenues are up slightly over last year:
[Governor] Markell will have $3.18 billion to spend next year, a slight increase from the $3.09 billion that was appropriated last year.
The whole article can be found here.
What I posted on September 23, 2009 (You can search the blog for this post):
While the national and global economy will be rebounding strongly, Delaware’s economy won’t move much because we have no remaining growth industries in the State. State revenues, on the other hand, will benefit from the Corporate taxes paid by global companies benefitting from the global economic growth. Delaware will become increasingly dependent on these external taxpayers as the internal economy continues to idle (as if already paying for ~45% of our budget was dependent enough — try 60%).
My comments weren’t particularly hopeful, either, but it’s nice to see confirmation.