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State Treasurer Jack A. Markell








I had lots of help in writing this book.

Dozens of Delawareans sent me ideas, edited my words and greatly improved the final product. I’m grateful to all of them.

There are four in particular who deserve special mention, because the project started with them many months ago, seated around my kitchen table.

Susan Swan, Ann Marie Johnson Ianni, Nancy Charron and Stephanie McClellan were simply amazing in terms of their wisdom, tenacity and patience with me. Any mistakes in these pages are, of course, mine alone. But the four of them rightfully get credit for that which is good. I simply can’t thank them enough.

I’m also grateful to the folks at Brain Storm, a firm focused on developing policy ideas for public servants. They were very helpful in terms of making sure I was up to speed on initiatives across the country – for better and for worse.

I would also like to thank Joe Rogalsky, Molly Keresztury, Jed Weeks, Douglas Marshall-Steele, and Sheila Grant amongst others who made important editorial contributions at different times in the process.

Finally, I thank my family for their love and support, not just during the writing of this book, but during my entire career serving the people of Delaware. My kids, Molly and Michael, as well as my wife, Carla, remind me all the time that government and policy are not supposed to be about fancy speeches and ideas, but rather about actions that make a difference in the lives of real people. I love them and am grateful for their love in return.











Energy, Climate Change, and Delaware’s Future


A Plan for Enhancing Our Quality of Life in Delaware


Turning Ideas into Meaningful Employment (TIME)


Enhancing Delaware’s Safety and Security


In Sickness and in Health: Health Care for All Delawareans


Delaware’s Education Future: World Class Public Schools












This is a policy book. It comes from years of studying, talking with experts, creating successful government initiatives—and lots of listening to the concerns of Delaware citizens. The result is an in-depth analysis of the health of our state that identifies short-term and long-term opportunities and challenges and lays out creative ideas to secure increased prosperity for all Delawareans.

But government “of the people” doesn't exist in some sort

of policy vacuum. It reflects the experiences, motives, and aspirations of the people who craft it. So, as I campaign for governor of Delaware, I want you to know not only what

I will do as chief executive, but why. My policy ideas are

driven by who I am, and I'm driven by those who informed

my life and work.

I begin, then, with one of the wisest people I've known:

my grandmother.

Grandma Mollie lived in a small one-bedroom apartment on a busy intersection in Brooklyn—a lot busier than my little street in Windy Hills, off Kirkwood Highway in Newark. The sensory thrill of Brooklyn lingers in my memory: the ambulance sirens, the traffic, the rumble of the old elevator, the smell of the cookies that were always waiting when we arrived every six weeks or so—my parents, Leni and Bill, my brother, David, my sister, Judy, and me.

There was something else besides cookies I could count on from Grandma: straight talk, unvarnished and unapologetic.

It is one of our last conversations, when she was already past 90 years of age and I was around 30, that I remember best. I was an early and senior executive at Nextel, on the ground floor of the wireless telecommunications revolution. I was excited by this little upstart company and how we were changing the way America communicated. I wanted Grandma to share my excitement.

As I described the new technologies—faxes, cell phones, pagers—she simply sat and listened. When I finished, her words were clear, her voice strong: “So what? So what you can send a piece of paper over a phone line? So what that somebody can send you a message through the air? When

people are still killing each other, when people are hurting each other, when people still starve, when babies have babies, when the homeless freeze outside, so what?”

That was my grandmother’s way. Grandma never lost sight of the priorities in life, and by her example she conveyed them to me. She taught me to look critically at the world around me. Her guidance, her sense of right and wrong, and her conviction that people and community must come first have inspired much of my life and work.

Grandma’s blunt admonition forced me to recall promises I had made to myself as a younger man.

During my senior year at Newark High School, my father taught overseas. My mom and I accompanied him. Growing up in a modest but comfortable middle-class home, I was unprepared for the wrenching sights I would see as we stepped off the plane in New Delhi, India: men, women, and children so poor they wouldn’t know what a “poverty line” was. I looked in horror as travelers walked briskly around and over homeless beggars.

Ironically, India today is fast becoming an icon for educational achievement and a dynamic work ethic, threatening our economic competitiveness. But for me, India will always be that jolt of reality, the place where I made that promise to myself: I would do something to make it possible for more people to achieve their economic potential. After getting a degree in economics and development studies from Brown University, I wrestled with how to fulfill that promise to myself.

Tempted to join the Peace Corps, I decided instead to pursue an MBA, reasoning that those who control the levers of economic power have the greatest ability to effect social change. So I went to Chicago and worked to put myself through graduate school at the University of Chicago, where I earned an MBA. From there I set out on the amazing path that led to a career in business and technology.

Years later, when I told my business colleagues I was going to run for state treasurer, they asked me why. I answered that deep in my heart I believe that government can make things a little easier for the average family, and a little brighter for Delaware’s future.

When I began my campaign to become treasurer in 1998,


I trailed the incumbent by 27 points. Relentless work and a great team brought me to victory by 16 points, an achievement I owe in large measure to my wife, Carla, whom I have known since childhood. Our wonderful children—Grandma’s namesake, Molly, now 15, and Michael, 12—have joined me on campaigns that led to two subsequent reelections.

When I began my tenure, I discovered that the treasurer’s office was antiquated. Ten years later the office employs 21st-century technology and efficient financial practices. Moreover, I broadly interpret the mission of Treasurer to create programs that promote prosperity in society. I instill in my co-workers the importance of new ideas, diligent individual and collaborative work, and the drive to do whatever it takes to make a positive and measurable difference for Delaware’s families and for our state.

I recount these personal stories to give you a sense of why

I turned the corner from business into government, and why I’m pursuing the office of governor at this moment in Delaware’s history.

I’m running now because delay is not an option. This is a wonderful state, with a proud past and potentially a very bright future. But that bright future is not assured. I’m convinced that changes in our own economy, as well as forces around the globe, represent both a significant risk and, if we are smart about it, a huge opportunity.

In some ways, Delaware is thriving. We are one of only seven states in the country with the top AAA rating from all three agencies that rate state bonds. We have a low unemployment rate. We are recognized around the world for the strength of our legal system. There is much to be proud of.

Yet pride should not make us blind to looming problems that we have never before had to face as a state. For example, Delaware ranks among the worst in the country for new business creation, a canary-in-the-coal- mine statistic that should snap us to attention. Moreover, Delaware’s traditional revenue streams and job sources are under siege. Where will new jobs come from as industries flee to less expensive human-resource-rich countries in Asia? How will we pay for government services as revenue bounty from gaming and other sources dwindles?

We can easily see frayed edges in the social fabric as well. Today half of all black and Hispanic students in the state drop out of high school. More than 100,000 Delawareans have no health insurance. Many of the risks that families used to share with their employers and their government–health care, retirement benefits and college education–are now being shifted onto us to bear alone. No family is immune to these greater pressures, and so many Delawareans are feeling squeezed.

We have immense potential to make life more secure. In this book, and in my campaign for governor, I begin by asking questions: Is our state government as smart, forward-thinking, lean, vigorous, and effective as it should be? No. Are we doing enough—and enough of the right things—to become a jewel in the global economic marketplace? No. Are we educating and attracting a 21st- century workforce that’s fully up and running for the stiff competition ahead? Not yet. Can we do more, much more, to identify and create the conditions in which to grow a new generation of robust, clean, responsible enterprises in Delaware? Yes. Can we make society fairer and more prosperous, so that our interlaced futures all will be improved? Absolutely.

We’ve barely begun to put our imaginations to the new tasks ahead. And what better place to be imaginative than our small state, which can and should be a laboratory for innovation?

Somebody once said the average speed of trains today is about what it was 100 years ago—not because of the trains, but because of the tracks. We still have 19th- and 20th-century tracks, but we can’t afford 19th- and 20th- century thinking. Even Grandma Mollie would agree with that, so long as we continue to remember what’s really important in life. It’s time to lay those new tracks and get moving.

I’ve traveled the state from Delmar to Claymont for almost 10 years as an elected official, and our citizens have told me that we must make bold changes if we are going to make a measurable difference in the lives of real people. I am running for governor because I will not shy away from making bold changes, and I’ll never stop pushing myself for better solutions.

This brings me to what Carla and I jokingly refer to as my







“curse”—an urgent, restless impulse to do more, to never be satisfied, to bear down on the work at hand. To fulfill our state’s potential and to hold to Grandma’s uncompromising vision. Of course, it’s not a curse at all. It’s the passion that motivates me every single day.

As Governor, I will turn my clear vision for Delaware into bold, responsible policies. From my own deep well of ideas, and from the extensive network of innovative people nationwide whom I’ve come to know in my careers, I’ll continue to develop new models for how to achieve prosperity—for our children, and for generations we will never meet. The ideas in this book are merely a sampling of what I know to be possible.

More than 200 years ago, Delaware earned its moniker, “The First State.” We need to make that true once again. I ask that you join me in this great enterprise.


Energy, Climate Change, and Delaware’s Future

How Delaware chooses to produce and use energy will help determine whether the state flourishes or loses its status as an outstanding place to live and do business in the 21st century.

Why energy, when Delaware historically has not been a leading energy producer or consumer?

First, the emergence of the renewable energy, alternative fuel and other clean technology industries is one of the most dynamic areas of the economy. Second, energy is one of the most fundamental issues shaping our national and economic security in the United States. Third, energy issues directly impact the production of greenhouse gas emissions, the leading contributor to global warming and climate change.

We do not have much in the way of traditional, homegrown fossil fuel energy supplies in Delaware. We have no oil to drill, no vast coal resources, and no natural gas supplies. All of these come from somewhere else in the country or the world, and we pay for every bit of it – it’s money that leaves the state. Understanding how all of these economic development, national security, economic security, and environmental issues interact and then acting in a decisive way that benefits Delaware’s citizens, businesses, and government will rank among the most important leadership challenges for our next governor.

Many states, large and small, have been taking aggressive action to improve their energy situations – viewing clean energy as an economic development issue and investing in the production of renewable energy like biodiesel, wind and solar power as part of a job creation and economic growth strategy. Not only are these booming industries – wind power is the fastest growing source of energy in Texas, the heart of America’s oil and natural gas industries – they create high-paying manufacturing and labor jobs to build the equipment, install it, and maintain it.

As we plan for a cleaner, smarter energy future, Delaware should invest in four areas to protect consumers and businesses from future energy price increases and environmental risks.

New Ideas, New Energy

Like the rest of the United States, Delaware is addicted to oil and other fossil fuels. According to the federal Energy Information Administration, Delaware ranks 19th in per capita energy consumption – driving vehicles, heating homes, and fueling our industries and manufacturing base. 1 As of June 2007, Delaware’s cost of electricity was 14th highest in the country out of the 50 states and the District of Columbia. 2 Very little of the electricity we use – less than one-half of one percent of the State’s total – currently is generated in Delaware through renewable sources, ranking us with Alaska, Rhode Island and the District of Columbia as the only states in the country with little to no renewable energy generation.

Because Delaware is so heavily dependent on fossil fuels, Delaware’s economy and consumers are particularly susceptible to price increases due to problems that are well beyond their control, such as Middle East political crises or instability and natural gas shortages. In short, Delaware does not come close to controlling its own energy future. We must change that.

Our heavy reliance on fossil fuels also puts Delaware at a competitive and environmental disadvantage. The combustion of fossil fuels, both to drive our vehicles and to generate electricity in power plants, also is a leading contributor of harmful greenhouse gas emissions that are helping to produce global warming and climate change. And unlike states in the Midwest, we have virtually no alternative transportation fuel supply or infrastructure.

Delaware should be working proactively to reduce our reliance on oil and other fossil fuels by developing cleaner, renewable sources of Delaware-grown energy. We have a variety of potential renewable resources – wind power, solar power and biofuels made from home-grown crops are just a few. By taking action now, we can create jobs, reduce our reliance on foreign oil, make our businesses more competitive and reduce greenhouse gas emissions all at the same time. We should look at energy and climate change problems as economic and environmental opportunities – and I have a plan for doing just that.

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Clean Renewable Energy

Delaware enacted a renewable portfolio standard (RPS), which requires the state’s retail electricity suppliers to use renewable energy to generate at least 20 percent of the electricity they sell in Delaware by 2019. This is a good start for Delaware because states that have invested heavily in renewable energy have been finding that not only are they meeting their RPS renewable energy goals, they are exceeding them.

As a result, states like California, Texas, New Mexico, and New York, along with others, have sought to establish high renewable energy goals. Although Delaware’s renewable energy sector is in its infancy, we ought to be doing everything possible to learn from the experience of these leading states, adopt incentives and regulations that have worked effectively to bolster the rapid development and deployment of renewable energy, and aggressively seek out opportunities to expand Delaware’s sources of renewable power.

Some people think that renewable technologies are years away from being “practical” or “cost competitive” with traditional power sources. Wind is an exception to that rule and I believe we should act now to deploy wind power facilities in Delaware. Wind power is the fastest growing source of power in the U.S. and the main reason is simple – its cost is fixed and attractive.

For example, in November 2005 the 35,000 customers of Excel Energy in Colorado who had signed up to purchase “green power” fueled by wind farms began paying less than Excel’s other customers. Natural gas shortages had forced Excel to impose a 27% price increase on traditional power customers, while the 35,000 wind power customers paid an average of $10 less per month. 3 Wind is no longer an environmentalist’s pipe dream and with more U.S. and European wind power companies building manufacturing plants in the U.S., I believe it is time for Delaware to get on board.

We are all aware of the potential for the first off-shore wind farm in the U.S. to be developed here in Delaware, because it has been a dominant story in the news over the last year. Currently we await the outcome of a lengthy process involving four state agencies, Delmarva Power and Bluewater Wind. It is no accident that Delaware is a leader

here: according to the U.S. Department of Energy, Delaware has excellent wind resources just off its coast. A few other states, such as Texas and California, have been successful in carefully crafting regulatory rules and incentives to attract the major wind power developers and enable them to install significant capacity.

Making Delaware More Attractive to Renewable Energy

Delaware can pursue other strategies to increase the development of renewable energy. We want to ensure that Delaware is and is perceived to be a state that is friendly to renewable energy and renewable energy developers. For instance, the state could offer green building tax credits to companies that incorporate renewable energy sources, like wind power, as part of the design of new commercial buildings and include other environmentally friendly or “green” design features.

From the days of the solar demonstration house in Newark to the recently-formed Sustainable Energy Utility, solar power has been an area of attention in Delaware. Studies indicate that solar power could be deployed cost- effectively in Delaware, especially by some larger commercial or industrial customers. For example, a study that was released by the Delaware Million Solar Roofs Coalition found opportunities to integrate solar thermal applications cost-effectively in Delaware’s poultry industry.

The preheating of water in poultry processing plants was found to be a particularly cost-effective application of solar thermal technologies, with paybacks of less than five years. Demonstration projects like the new solar powered poultry house that was installed this year by Allen Family Foods in Laurel potentially opens the way to significant funding from the USDA, and could ultimately help get the poultry houses off the grid – thereby reducing the risk to the poultry growers from blackouts/brownouts in the summer.

We will provide all of the same incentives for the deployment of solar panels that were discussed above with wind power. By establishing a pilot program to deploy more solar panels on the roofs of office buildings and homes in Delaware, we can help reduce the cost of solar power which remains much higher than wind

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power. This pilot program will seek to build upon the successes of the Delaware Million Solar Roofs Coalition, which is currently attempting to leverage federal funds to deploy 500 solar energy systems in Delaware. 4 Carla and I already took one step into more energy efficient living by installing solar panels on our own home. As governor I will aggressively pursue our fair share of federal funds for programs like these.

Fighting for Federal Dollars and Research

The promise of solar power is exciting in the long term and much publicly and privately funded research is going on right now on how best to reduce the cost of solar power. My administration will be active in attracting additional research dollars to Delaware’s colleges and universities and making sure that research can be commercialized as soon as possible.

For example, one of the critical issues in making solar power more economical is increasing the conversion efficiency of solar panels. Right now, solar panels convert approximately 15% of the sunlight hitting its surface into electricity. In October 2006, one solar panel designer, Sun Power, announced it had achieved a 22% efficiency level in its laboratories. Interestingly, the U.S. military is at the forefront of research in this area and Delaware is well- positioned to be a national leader in this important area of research.

In summer 2007, the Department of Defense awarded $12.2 million to DuPont to lead the DuPont-University of Delaware Very High Efficiency Solar Cell (VHESC) program. This would allow soldiers to recharge their laptops, night goggles and other electronic gear on the battlefield, rather than having to fly in and/or carry heavy battery packs. Overall, this program could bring $100 million in investment to Delaware. 5 My administration will support the involvement of our colleges and universities in high-profile, cutting-edge research projects like the VHESC program.

Leading by Example

Delaware state government should lead by example when it comes to renewable energy. We should examine our portfolio of state buildings and real estate and use them to

demonstrate how renewable energy can be integrated into those facilities. For example, every large roof space on a state building or facility ought to be considered as a mini- power plant in waiting. We ought to install photovoltaic solar panels and technologies on the roofs of state buildings, prisons and the like and generate electricity to offset some of those buildings’ energy loads. We should explore the possibility of installing wind turbines on larger state parcels of land and prisons. By demonstrating the feasibility of these sorts of renewable systems, the state can encourage commercial and industrial customers to follow suit.

Using the Power of Delaware’s Pension and Investment Funds to Support Clean Energy

As state treasurer, I am certain that climate change, increased energy demand, and other global environmental and political trends pose significant risks to investors, corporations and other segments of the global economy. But the businessman in me recognizes that these risks also point to a number of readily identifiable investment opportunities. Trustees of large public pension funds and managers of investment portfolios have a fiduciary responsibility to take appropriate steps to measure, manage, and reduce risk. But they also have the opportunity to encourage the leveraging of their investment power to create sustained, long-term positive value, while contributing to the development of new jobs in environmentally responsible, clean technology-related industries within their borders.

Recognizing these risks and investment opportunities, some state pension and investment funds are beginning to invest in alternative energy, renewable energy, and “clean technologies.” For example, two of the largest public pension funds in the nation, the California Public Employees’ Retirement System (CalPERS) and the California State Teachers Retirement System (CalSTRS) have committed to:

• Invest $450 million ($200 million by CalPERS, $250 million by CalSTRS) in clean energy technologies, such as renewable energy, fuel cells, and waste recycling.

• Invest more than $500 million of their stock

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portfolios into environmentally screened funds through leading investment managers with proven track records.

• Invest an estimated $200 million combined to retrofit their real estate holdings to reduce energy consumption by 20 percent within five years. The retrofit investment would allow the funds to capture an estimated $40 million annually in energy savings, while creating approximately 4,300 jobs and reducing annual energy demand by 72 megawatts – enough power to supply an estimated 50,000 homes annually.

Delaware should consider similar initiatives. Delaware’s Public Employees’ Retirement System alone has assets in excess of $6.5 billion. I will encourage the trustees of Delaware PERS to develop a “Green Wave” investment plan for Delaware consistent with their fiduciary responsibility to pensioners. I believe such investments can be good for the bottom line of our public pension and investment funds, as well as ultimately good for our energy and economic security.

Similarly, I will challenge the trustees of other large pension and investment funds in Delaware, including union and corporate-based funds, to follow suit. All of these investments – public and private – can serve to create jobs and stimulate clean technology and clean energy industries here in Delaware.


How can we, as individuals and as a state, have a positive impact on the environment, reduce the greenhouse gases we generate, and save money at the same time? The answer is simple and basic: energy conservation and efficiency—we do not pay for energy we do not use, whether it is in the form of electricity, oil or gas. Using less energy makes sense and saves money – conservation is the most effective energy investment with the highest return.

Energy conservation and efficiency will save money and energy in the short term, and with a little effort, in the long run it will eliminate load growth. If we take energy efficiency seriously, we will reduce the need for power companies to build new electricity generating plants and transmission lines. With a reduced need, we can be

choosier about the type of plants that are used or built.

In recent years, our state has begun to take steps to bring about increased energy efficiency. There are programs and information available through the Delaware Energy Office, including the Energy An$wers program. Energy An$wers provides incentives to residential and non-residential electric customers. The Energy An$wers for Business program offers funding to help businesses assess and improve the energy efficiency of their facilities. The Energy An$wers for Home Appliances program provides grants to Delaware residents who retire inefficient appliances and replace them with select high-efficiency products such as refrigerators, freezers, washing machines, electric water heaters, central A/C and air conditioning window units.

This program is a good start, but we can and must do better—much better. According to the American Council for an Energy Efficient Economy, Delaware ranks 30th out of the 50 states on key measures of energy efficiency.

Delaware needs to substantially ramp up its energy conservation and efficiency programs. To do this, the state should, among other things:

• Offer energy efficiency tax incentives that reward investments in energy efficiency by consumers or businesses. For example, homeowners could deduct the interest paid on loans used to purchase energy efficient equipment or products, such as efficient heating or air conditioning systems, windows or insulation, solar electrical and hot water heating, and geothermal heating and cooling.

• Adopt the latest energy efficiency building codes. The state currently utilizes the 2000 International Energy Conservation Code (IECC) for residential construction and ASHRAE Standard 90.1-1999 for commercial construction. Our state must catch up and upgrade the state building codes, ensuring that Delaware architects and builders incorporate higher levels of energy efficiency into homes and commercial buildings.

• Adopt appliance efficiency standards to ensure that products sold in Delaware meet higher levels of energy efficiency. The American Council for an Energy-Efficient Economy calls appliance efficiency

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standards “one of America’s most effective energy saving policies.” The Appliance Standards Awareness Project has estimated that Delaware could significantly cut its energy use by the year 2020 just by following in the footsteps of our neighbors in Maryland and New Jersey, and adopting a range of current appliance efficiency standards.

• Adopt industrial efficiency standards for industrial and commercial equipment. The industrial sector is the largest user of electricity, and even modest efficiency gains in this area will have a significant impact.

• Ensure that construction policies and requests for proposals for all public buildings incorporate energy efficiency and sustainable design. For example, school construction may be slightly more expensive up front but will save districts considerable money, energy, and water in the long run. The state government itself must lead the effort in building energy efficiency, for both our new construction, and retrofitting our existing buildings. The U.S. Green Building Council has established their LEED standards (Leadership in Energy and Environmental Design) as a benchmark for the design, construction and operation of green buildings, and all buildings and design professionals should be LEED certified. Following these standards will help us improve the quality of our buildings and reduce their impact on the environment.

• Partner with construction trades and sponsor training in construction, operations, and maintenance of solar, wind, geothermal, and other energy efficient systems.

• Expand low-income home weatherization funding, which helps improve the energy efficiency of homes and makes energy assistance dollars go further. Many people believe that focusing on weatherization assistance is the best bang for the buck, particularly in helping people with low incomes, because it will reduce expenses over the long term and also generate economic activity for local business people who actually do the work.

• Adopt commercial and industrial weatherization standards. Large facilities have large energy bills and

are costly to heat and cool because of their size. Addition of passive solar heat can save significant heating expense and quickly pay for itself.

• Develop programs to help commercial and industrial customers install co-generation Combined Heat and Power (CHP) systems. On average, two-thirds of the fuel energy burned to generate electricity is wasted—dumped into rivers or vented into the outside air by “cooling towers.” More is wasted in long distance power transmission. Much of this wasted heat can be recovered and used to heat and cool buildings. The state ought to develop programs to encourage more industrial, commercial, and governmental facilities to incorporate co-gen/CHP designs for new or retrofitted facilities that utilize the energy they are producing. The state, however, needs to be careful not to allow cogeneration systems to burn high emission solid fuels.

• Make full use of the new Sustainable Energy Utility. The Sustainable Energy Utility will encompass not only energy conservation and efficiency programs, but also the development of renewable energy like solar power. This approach is working in Vermont, which has created Efficiency Vermont, a first-of-its- kind energy efficiency utility that provides technical assistance and financial incentives to help Vermonters identify and pay for cost-effective approaches to energy-efficient building design, construction, renovation, equipment, lighting, and appliances.

The governor's office must also play an important leadership role in increasing energy efficiency statewide. First, the governor leads by example, implementing energy conservation and efficiency goals and programs throughout state government operations. Second, the governor must work creatively with the private sector to develop partnerships that lead to more efficient uses of energy.

For example, as governor, I will work with banks and other lending institutions throughout Delaware to develop “Green Car” and "Green Mortgage" lending programs. These programs would offer discounted lending rates for the purchase of hybrid and alternative-fuel vehicles, and







homes that have received an "Energy Star" rating. Even a loan rate discount of one-half of one percent would be meaningful and will lead to an overall reduction in energy use.

And, I will work with the state's Public Service Commission to follow the lead of California and other state utility regulators and adopt energy efficiency-first polices. That is, before electric utilities spend a dollar to buy power in the market or build a new power plant, they first would be required to invest in ways to help consumers use energy more efficiently. This will be better for everyone's bottom line and better for our environment.

Helping those who need it most

For low-income residents and families, the rising cost of electricity may be too overwhelming for an efficient freezer to fix. Exploring avenues to increase energy efficiency is only part of the answer. Rising energy prices are forcing some households, particularly low-income families, to cut back on essentials like food and healthcare to absorb rising energy costs. For example, a Nov. 3, 2007 News Journal article indicated that fuel oil used to heat homes has increased in price by 56 cents per gallon in the last year and 28% in just the last two months. That is why the state must couple plans for reducing energy usage with financial assistance programs targeted at helping low- income residents confront present energy concerns.

While initial programs are already in place, funding limitations remain an obstacle. An estimated 15,400 Delaware households received assistance through federal Low Income Home Energy Assistance Program funding in FY 2006. Although families with incomes of up to 200 percent of the poverty rate are eligible for LIHEAP assistance – roughly $40,000 for a family of four – only a fraction of those who are eligible receive this help due to funding limitations. The state tries to supplement those federal funds by collecting about $800,000 annually from public goods charges on electric bills to fund low-income fuel assistance and weatherization programs.

The state can provide additional help by increasing funding of low-income energy assistance programs. To ensure such funds go further, the state also should develop programs to increase the energy efficiency of low-

income homes and housing, as I mentioned earlier. The state should make home energy audits and low-cost retrofits available to all families receiving low-income energy assistance. These audits and retrofits also should be available to landlords who provide low-income housing. Adopting the more energy efficient building codes will ensure that all Delaware residents in newly constructed housing reap the benefits of energy efficiency. These small investments will allow federal and state energy assistance dollars to go further and help more citizens, while simultaneously creating jobs in the construction and trade markets.

To tackle our energy concerns, we must target every side of the problem. From energy efficiency and providing assistance for needy families currently choosing between energy and other commodities, to educating consumers on ways to use less energy around times of peak electricity, both the consumption of energy and the impact our energy use has on the earth will be significantly reduced in Delaware. As governor, I will take the necessary steps to ensure that every Delawarean can afford current energy prices in addition to confidently looking toward a brighter and more energy-efficient future.

Embracing the Solutions to Global Warming and Climate Change

Heightened media coverage and books and movies like former Vice President Al Gore’s An Inconvenient Truth have helped educate people that global warming and climate change are real and threaten our economy and our quality of life. Moreover, drastic changes in the world’s ecosystem are not only possible, but are very difficult to predict. Species die-off, desertification, rising sea level, and forced human migration as a result of abandonment of coastal cities are all among the alarming possibilities.

It is clear that global warming caused by the rapid buildup of greenhouse gases is changing climates. Not only has global warming increased the temperature of the earth and oceans, it is contributing to increasingly severe weather. We watched in horror as Hurricane Katrina nearly wiped New Orleans and parts of Mississippi off the map in 2005, but that was just one of a record 27

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hurricanes that year. There has been a significant increase in violent storms like hurricanes, cyclones and typhoons around the world in recent decades, fueled in part by the impact of global warming on our planet.

The impact of these climate changes on Delaware may be severe. Projections by the Union of Concerned Scientists, for example, show that we likely will experience average temperature increases of two to three degrees Fahrenheit through the first third of this century due to emissions that already are in the atmosphere. By the middle part of the century, average temperatures may rise by three to five degrees if we act to curb emissions or by four to seven degrees if we continue on the same path.

If we fail to act, by the latter part of the century, Delaware will be baking, with average temperatures that are seven to 12 degrees higher than today. Our summer will feel like southern Georgia. But worse, the number of days of dangerous heat will skyrocket. Cities like Philadelphia and Wilmington will likely experience an average of 19 days of temperatures exceeding 90 degrees in a summer. If we fail to curb greenhouse gas emissions, the number of days with temperatures above 90 degrees is projected to quadruple to 82 by the end of the century. The number of dangerously hot days – those above 100 degrees – is projected to rise from about two a year to 28 days – almost an entire month’s worth of days topping 100 degrees.

This poses a basic threat to the health and safety of our citizens. In 2003, a record heat wave killed nearly 35,000 people in Europe. The kinds of temperatures that are being projected for our region go far beyond anything we have experienced before.

But global warming and climate change have the potential of affecting Delaware in other important areas. We are, of course, a coastal state. If the world continues to warm at its current unprecedented pace, and the ice in the Arctic and Antarctic continue to melt, rising sea levels pose a threat to our coastline. According to new data, even under conservative projections of potential sea-levels increases of 7 to 23 inches, “many areas of the densely populated Northeast coast face substantial increases in the extent and frequency of coastal flooding and are at increased risk of severe storm-related damage.” 6 Even under conservative scenarios, sea-level rise could permanently

flood low-lying coastal areas. We simply cannot afford any bad or worst case scenarios.

Delaware has already started to take a pro-active role in addressing climate change. While the federal government has failed to move forward, in December 2005 Delaware joined a group of Northeastern and Mid-Atlantic states that have stepped up to the plate to take action. Delaware is a full participant in the Regional Greenhouse Gas Initiative (RGGI), a consortium of nine Northeastern and Mid-Atlantic states that has agreed to cap emissions by electric power generators and establish a market-based emissions trading system.

RGGI sets a cap on emissions of carbon dioxide from power plants, and allows sources to trade emissions allowances. The program will begin by capping emissions at current levels in 2009, and then reducing emissions 10% by 2019. This type of “cap and trade” approach was successfully used in the 1990s to dramatically reduce emissions of sulfur dioxide – one of the main causes of acid rain in the U.S., so applied appropriately toward power plants, the “cap and trade” approach should work for carbon emissions as well. The “cap and trade” approach puts market mechanisms and incentives in place to reduce emissions in a cost-effective manner.

This is an excellent start. But as governor, I would like to see Delaware go further and partner with other states to take action to curb other sources of greenhouse gas emissions.

For example, California Governor Arnold Schwarzenegger recently issued an executive order that adopts a Low Carbon Fuel Standard for that state. Once implemented, that new fuel standard will apply to all refiners, blenders, producers, or importers of transportation fuels in California. There is no reason that Delaware cannot learn from this experience as it moves forward and works with other states in our region to require the same. This will impact one of the largest sources of greenhouse gas emissions – emissions from vehicles – and help improve air quality in our state.

Delaware should join with other states in our region to establish a goal of reducing the carbon intensity of transportation fuels by 10 percent by 2020 and adopt regulations that mirror California’s, and give refiners,

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blenders, producers, or importers of these fuels the flexibility to best produce fuels that meet this goal here. This market-based flexibility is one of the main reasons that California’s new fuel standard has been supported by an unusual partnership of oil companies, utilities, alternative fuel producers, and environmental groups.

We should explore ways to cap all greenhouse emissions, not just those from power plants and vehicles. I favor market-based approaches that will enable companies, and even consumers, to trade emissions credits so that those with low emissions can profit from their efficiency while those with higher emissions have to pay for their inefficiency and contribution to environmental problems. Companies throughout the world are joining efforts to measure and reduce greenhouse gas emissions, and large governmental bodies, from whole countries to the European Union, are adopting greenhouse gas emissions caps. Delaware should do the same. We can start by joining existing climate exchange programs, such as the Chicago Climate Exchange, as New Mexico recently did. But we also should reach out to other states, perhaps by expanding the reach of the Regional Greenhouse Gas Initiative to cap other greenhouse gases beyond carbon dioxide and other sources of greenhouse gas emissions.

One other important thing that I would do as governor is educate Delawareans about what they can do to reduce

their own greenhouse gas emissions. While there has been lots of discussion in the media of the scary potential of global warming, there has not been an equal amount of discussion of what all of us can do to reduce emissions. Some strategies are simple and inexpensive, but effective

– recycling more, replacing incandescent light bulbs with compact fluorescent light bulbs, and planting trees.

Some strategies involve upfront costs but can prove

cost-effective over time. The vehicle you drive may well be the most important climate change choice you make. And different options are available to help you reduce your carbon emissions. For example, if you need to buy

a new vehicle, purchasing and driving a vehicle that gets

just two miles per gallon better fuel efficiency would reduce carbon emissions by 1,540 pounds each year. Or better yet, you could purchase a hybrid electric vehicle, which will save hundreds of dollars on gas and cut emissions substantially and may qualify you for tax

credits. By choosing an Energy Star-certified home appliance such as a refrigerator, clothes washer, dishwasher, or computer rather than one that is less efficient, consumers can reduce their energy consumption and carbon emissions by 10 percent or more.

Delawareans want to do the right thing. One of the things that we treasure most about our state is its environment – from our beautiful and accessible seacoast to our open spaces. By arming Delawareans with basic information about how they can contribute to solutions to global warming and climate change, as well as energy efficiency, we can help protect these resources and leave something better behind for future generations.

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A Plan for Enhancing Our Quality of Life in Delaware

When I was a kid, we spent virtually every summer vacation at the Delaware beaches. We’d always camp at Sandy Cove in Ocean View. And while I always wondered what it might be like to stay in a hotel, I did develop an appreciation for the outdoors that I still have today and that Carla and I try to pass on to Molly and Michael.

For the last two years, I’ve taken a different route to enjoy Delaware’s amazing beauty. Along with a group of other bicyclists, I’ve ridden hundreds of miles, covering Delaware’s back roads and small towns from one end of the state to the other.

Even with all of the development we’ve seen, this is still a gorgeous state with mile after mile of farmland, forests, wetlands, and protected areas. We really are a “Small Wonder.” And we’ve got to keep much of the state exactly that way.

But Delaware’s natural beauty doesn’t help those who are stuck in traffic, trying to get home to their families after work. And it is harder for our kids to develop an appreciation for the outdoors when we have to worry constantly about whether they can safely walk or ride their bikes near busy roads. So, where Delaware is growing, we need to make sure we can reap the benefits of growth while maintaining those qualities we most enjoy.

Delawareans have a lot to be thankful for. We have miles of coastline, areas of natural beauty and wildlife, livable cities with lots of arts and culture, and a lower cost of living than places like Philadelphia, New York, and Washington, D.C., but easy access to them. This affords us a quality of life that people in other parts of the country envy and appreciate.

In recent years, the growth of our economy – largely based on our four “Cs” of chicken, chemicals, cars, and credit cards – has given Delawareans wealth and abundant opportunities for economic success. That success, coupled with our natural resources and more livable lifestyle, also contributes to a positive quality of life.

Where do we go from here? How do we make sure the quality of life in Delaware is even better for future generations?

A couple months ago, I released my economic

development plan, setting forth some ideas to keep our

economy growing and create more jobs. Clearly we want

an economy that continues to grow and thrive, but all of

our development efforts should meet not just economic, but also environmental and community goals that

contribute to our long-term wellbeing.

Perhaps more importantly, we need to protect our way of life, which in many respects revolves around how we develop and use our land. From the continued development of our urban areas, to our established and emerging suburbs and to the rural parts of the state, we need to meet the challenges and opportunities that economic and population growth create.

The choices we make during the next 10 years will determine whether Delaware grows in a smart, manageable fashion for the next 100.

In short, now is the time to plan carefully for the future and the Delaware we wish to leave behind for our children and grandchildren.

We need to explore that future and choose a forward- thinking course together. Our choices are to continue on

the state’s current course, or to move in the direction of a better one. Development need not engulf the countryside

we would like to preserve. We can have strong economic

development in many areas while protecting our rural heritage, natural landscapes and outdoor resources that

so many of us enjoy and that we all too often take for granted.

If we truly wish to preserve the quality of life that makes Delaware a great place to live and work, we will have to make tough choices about where to grow and develop, as well as where not to develop – and of course we have to make those choices recognizing the system of property rights on which our country has been built. But every Delawarean I have met wants a better future for our state and our children, and I’m confident that Delawareans support efforts to secure that future by viewing local opportunities as part of a broader, forward-looking perspective.

Time is of the essence. These decisions are becoming urgent, as more and more of our natural landscape

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irreversibly is being lost each and every day.

Demographics in part are driving the choices we need to make. A report recently published by my office, “Delaware Facing Forward: A Look at Delaware’s Demographic Future,” highlights the changes our population will face by 2030, and the changes our state will need to make to prepare for these changes. For example, Delaware’s population will grow by about one-third between 2000 and 2030. Consider the implications of adding more than 220,000 people to Delaware. That is more than 220,000 people who will need a place to live. That is more than 220,000 people who will be on our roadways, need clean water and electricity, and places to relax.

To preserve our quality of life and accommodate the economic and population growth that is occurring all around us, we must plan wisely for the future, using our resources efficiently. The following are some ideas in key areas that affect our quality of life. By pursuing these and other ideas, we can manage our growth while not stifling our economy or reducing the quality of life we hold dear.

Specifically, we will:

• Encourage Smarter Growth and Better Land Use

• Invest in Transportation Solutions to Get Delaware Moving

Encouraging Smarter Growth and Better Land Use

As I commute to Dover from my home near Wilmington, I am always amazed by the traffic sitting on Route 1, trying to get onto I-95 at the Christiana Mall. I am also struck by the huge increase in congestion as I drive on Route 1 toward Rehoboth Beach.

Most Delawareans need a car to get to where they want to go, and the way that housing developments, shopping centers, and worksites have been created over time only exacerbates our reliance on cars and trucks. The more our housing, shopping, commerce, and places of employment are separated geographically, farther and farther away from town centers and public transportation, the more sprawl we experience.

If sitting in traffic were not bad enough, sprawl is

expensive, and all of us end up paying the price. Paving over our farmland and green areas for new development inevitably requires more public investment in services like new road construction and maintenance, new sewer lines, and expanded water facilities. It places additional burdens on first responders such as paramedics, police, and fire departments, and often requires the construction of new schools. Unfortunately these investments in newly developed areas often must be paid for through higher taxes. One national study found that, on average, the public infrastructure for a new home located 10 miles from a city center costs taxpayers twice as much as one near the downtown area. 7

And other expenses also are associated with sprawl. Our families incur higher transportation costs since we must drive greater distances when traveling to work, to shop, or to go to school. Studies have found that residents of sprawling communities drive three to four times as much as those living in compact, well-planned areas. 8 In many cases, families need a second car to get through their daily routines and have to budget more and more to pay for gas.

But it does not have to be this way. Many states have partnered with cities and towns to do a better job of planning for and managing growth. Smart growth decisions – like mixed land use, clustered development and multiple transportation choices – help minimize all of these costs. Better use of existing infrastructure keeps taxes down, reduces traffic congestion, saves energy, preserves open spaces, and helps families become less dependent on cars. 9 Naturally, those who wish to drive should be able to, but those who want or need other choices should have them available.

Smart growth also builds healthier and safer communities. When homes, work, and shopping are closer together, residents have more opportunity to walk and bike as a part of everyday life. Sedentary lifestyles contribute to obesity and put us at higher risk of heart disease, diabetes, and some forms of cancer. According to a 2007 report from the Trust for America’s Health, nearly 1 in 4 Delaware adults are obese and even worse, 15 percent of Delaware’s children are overweight. Nemours Health Preventive Services estimates that another 21 percent of our children are at risk of becoming obese.

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Studies have also found that well-designed compact neighborhoods can reduce crime rates. 10 Communities where people are outside and have common gathering places like parks, playgrounds, and coffee shops have lower crime rates regardless of income level or location.

With adequate foresight and planning we can encourage transportation, school construction, open space preservation, and other capital investments in areas that are cost-effective and responsible. We can do all of this and still respect the rights of property owners. I am well aware that respect for property rights was a founding principle of our great nation.

We can stimulate housing development in areas close to business centers and transit hubs, thereby reducing commute times, energy demand, and pollution. By responsibly planning for our state’s development, we can reduce these costs and maintain our quality of life.

During the past few years, the legislature has enacted laws that call for comprehensive growth plans, provide funding for open space acquisition and farmland preservation, improve cooperation between the state and developers, and increase matching grants for brownfields assessment and cleanup. Our state still can do more to encourage smarter growth and better land use through such initiatives as:

Making Growth Planning a Responsibility throughout State Government

All too often state agencies are stuck in their silos, focusing on their narrow policy areas, without stopping to consider the bigger picture and their small but potentially important contribution to broader state issues like growth. In the mid-1990s the Delaware General Assembly passed legislation creating a Cabinet Committee on State Planning Issues. The purpose of the committee is to advise the governor on orderly growth and development of the state, but I believe this committee has been tremendously underutilized.

To better coordinate growth issues at the state level, I will ensure that the Cabinet Committee on State Planning is an active, forward-thinking body which coordinates efforts to

create a dashboard of activities from potential impacts of development of our open space to transportation. To underscore the importance of this effort, I also will move the State Planning Office out of the Office of Management and Budget and into the governor’s office.

I will also direct state agencies to use their permitting authority to encourage better growth-related outcomes. Some agencies have applied a narrow interpretation of their permitting authority, routinely agreeing to approve proposals if the project is technically feasible, regardless of whether it is the right thing to do. In such instances, those agencies do not consider the larger community concern of what impact the proposal might have on traffic congestion, loss of forest and wildlife habitat, air quality, or state taxpayers’ wallets. While zoning issues are and will always be a local government prerogative, state agencies ought to think more expansively, work in a cross-cutting manner and use their permitting powers more effectively.

Helping Delaware’s Communities with Smart Growth Planning

One way to reduce sprawl is to encourage the design and creation of walkable, transit-friendly, mixed-use communities. These well-designed communities integrate housing, retail businesses and workplaces within smaller, pedestrian-friendly areas. The designs can be less costly for taxpayers than development that requires growth in new areas and buildings because fewer investments in infrastructure like new roads, sewers and electricity are needed. Yet local zoning regulations and building codes can hinder the development of these communities because developers find that buying land outside of designated growth zones is cheaper and comes with fewer strings attached than property inside designated growth zones, which is where we should be encouraging new construction.

The state can encourage compact community development, as well as give Delawareans more diverse housing choices, by encouraging local governments to promote infill development and adopt parallel zoning regulations and building codes that level the regulatory playing field.

Recent studies have found that these efficient

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developments can save an average of 31.8 percent in infrastructure costs, 11 so Delaware has a lot to gain by adopting more compact growth planning. The State’s Livable Delaware’s Community Design Subcommittee includes compact communities as one of its “core values.” 12 But we can do more to encourage the adoption of this smart growth approach by local governments by:

• Developing rational, reasonable and predictable zoning regulations. Builders have told me many times that their biggest concern when state officials begin rewriting growth policies is maintaining predictability. Developers need predictability as they weigh the risk of investing in various projects.

• Offering local planning assistance regarding statewide environmental issues. Some environmental issues with statewide implications, such as riparian buffers and most freshwater wetlands, currently are managed only under local development codes, in a hodge-podge of different ways with different code requirements. And yet, virtually no local government in the state has an environmental scientist, biologist, or landscape ecologist on staff. Given the abundant state expertise in these issues, the Department of Natural Resources and Environmental Control should provide direct assistance to local governments grappling with these issues. This not only is a matter of more effective environmental protection, but also is cost-effective for the state in the long run. Working with local governments to protect these areas now can save millions of dollars for water quality improvements later and provide the aesthetic and recreational benefits of clean water.

• Developing a model statewide approach to developing new schools. It is time for the state and developers to create a partnership and agree upon the financing of new schools. Rather than continue with an approach that relies on different developer fees in different areas throughout Delaware, the state ought to work with the counties and local governments to develop one formula for financing new schools in

new planned communities. The state already has approved New Castle County’s approach to

recouping costs from developers, so that may offer

a good starting point for the development of a mutually agreed upon system that makes compliance easier for homebuilders while

ensuring adequate revenues to local jurisdictions.

A unified formula will not differentiate between

development in unincorporated areas and development in municipalities. The uniformed approach will also provide a predictable system that homebuilders want.

Encouraging the Redevelopment of Brownfields and Grayfields

For many years, states had to contend with the legal, regulatory and financial barriers to cleaning up and reusing old industrial sites (so-called brownfields), while most financial and legal incentives all but directed developers to build new commercial building and housing on open farms or green areas (so-called greenfields or greenspaces). In recent years, state and federal policies have begun to encourage the re-use or “recycling” of older buildings and sites, a critical tool to prevent sprawl. In 2001, our legislature passed a law that allowed the Delaware Economic Development Office’s Strategic Fund to be used for brownfield assessment and cleanup. 13 However, many communities in Delaware still struggle to master the many funding sources and programs involved with community revitalization efforts.

Brownfields ought to be considered within the broader context of how our communities wish to use and preserve land, and not simply as an isolated program, as often is the case. To protect public health while maximizing opportunities for effective land use and beneficial economic and community development, Delaware should pursue the following strategies concerning brownfields:

• Develop a brownfield redevelopment inventory. An inventory of this sort was pilot tested in South Wilmington, and would be a useful tool statewide. Such an inventory would allow redevelopment to be

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considered at the regional, or at least the landscape, scale. This is vital for things like transportation planning, school planning and other infrastructure and services. It would allow prioritization of sites for redevelopment, and identification of areas where investors and developers may get the best return on investment for any needed upgrades in infrastructure and services to support redevelopment. This helps invest taxpayer money wisely. An inventory also would allow the analysis of clusters of potential redevelopment sites of various sizes in a manner that can create synergistic opportunities. For examples, lands near the Port of Wilmington may be best targeted for port expansion/longshoreman job creation, while areas isolated from communities may be best used for light industrial development and industrial job creation – both of which are needed in Delaware. This helps fit the redevelopment use into the existing community character and may fill an identified need of the community. Finally, the process of developing an inventory provides the opportunity for stakeholders to participate in identification of potential opportunities as well as any problems. With this early vetting of potential sites and opportunities, we can build a strong redevelopment-marketing tool that outlines the business opportunities in various local settings, with a range of potential sites suitable for many uses.

• Provide one-stop-shopping for local governments and redevelopment agencies that are attempting to revitalize older contaminated properties. For example, as governor, I will make a member of my staff responsible for serving as an advocate and single point of contact for local governments, coordinate funding sources and help navigate state and local bureaucracies to get other permits related to development.

• Provide funding for neighborhood groups’ legal expenses to encourage acquisition of brownfields. The current state brownfield grants programs will not provide funds to pay the legal fees of neighborhood groups during the purchase of a brownfield site. The

state ought to create more partnerships between government and nonprofit organizations, as doing so will increase purchase, mitigation, and re-use of these lands. The funds could be provided with the caveat that the groups redevelop the land within a certain time frame.

Streamline permitting.

The state needs to streamline certain permits for brownfield sites. One example is the requirement to get a permit to de-water a trench on a construction site. The state Department of Natural Resources and Environmental Control’s Division of Air & Waste Management requires a plan for this as part of the investigation or a remediation work plan, while the same department’s Division of Water Resources also requires a permit. The state should review each and every step of the brownfield redevelopment process and seek out ways to streamline the process, ensuring public safety and health and adequate oversight, but reducing unnecessary and redundant bureaucracy that may be slowing down abatement and cleanups of brownfields. I will direct the Department of Natural Resources and Environmental Control and the Delaware Economic Development Office to work together to develop reasonable operations that are less onerous and bureaucratic than attempts that have failed in the past.

• Ensure that brownfield tax incentives focus on redevelopment. The state needs to ensure that its various tax and business incentives that deal with brownfields provide incentives that encourage cleanup and redevelopment of the land, not other goals. For example, the State’s Blue Collar Tax Credit for brownfields has been underutilized because it rewards job creation, not redevelopment. Job creation is certainly critical, and so is brownfield redevelopment.

• Buy down environmental insurance premiums to facilitate brownfield redevelopment by limiting or capping liability and cleanup costs. States like Massachusetts have been able to encourage the redevelopment of brownfield sites through such a program. Environmental insurance policies can protect the redeveloper of a brownfield site against












risks of liability for a variety of unexpected claims. For example, cost cap coverage protects against cleanup cost overruns. A different kind of insurance coverage, pollution liability coverage, protects against future third-party claims for on-site and off-site personal injury and property damage, including both known and unknown contamination. By helping to purchase these sorts of insurance policies, the state can further encourage the cleanup and development of brownfields.

• Facilitate the rehabilitation of “grayfields.”

Not all developable land is contaminated like brownfields. Grayfields – areas that often contain blighted or obsolete buildings sitting on land that may not be contaminated and could be re-used – ought to be developed before greenspaces. Sometimes grayfields exist because a building has outlived its usefulness, often because it no longer meets building codes, or because old fuel tanks or septic fields remain on site. Because these typically were sites of active commerce, grayfields often already are served by existing infrastructure and transit and can offer new possibilities for use, either as commercial, retail, or industrial space, or even for housing or school sites. I will challenge the state’s environmental and economic development agencies to prioritize these sites for redevelopment and develop incentives and policies to encourage this.

Linking Smart Growth Criteria to State Funding

The State’s “power of the purse” can be used to reward desired kinds of smart growth. Several states have begun to re-examine how historical funding practices inadvertently have encouraged the development of sprawl. Maryland, for example, used its Smart Growth and Neighborhood Conservation Act to reduce sprawl by putting into place a funding preference for existing older communities when new investments in public infrastructure, services, schools and other state investments coincide with the following sorts of desirable criteria:

Brownfield redevelopment

Transit access to the site

Water and sewer lines already on site

Building designs incorporating environmentally sustainable features

Buildings or projects conforming to the local comprehensive smart growth plan









proposed subdivision or neighborhood

Delaware should define spending priorities that state agencies must follow before approving expenditures for projects. This can help stop projects that are likely to contribute to sprawl and the loss of critical farmland and green spaces. In the longer term, these criteria should be incorporated into legislation that will guide each agency’s budget and spending processes.

Virtually all major state agencies, in one form or another, can play a meaningful role in this. All state agencies should think more broadly about the role they play in development issues. For example, the Department of Education is involved in school construction, which is a huge driver for land development. And yet the focus there is on administrative issues regarding school construction – the number of classrooms, the number of acres around the school facility, and the like. But should not the Department of Education also be asking questions like, “Is this the right site for a school, notwithstanding what the developers are telling us? Are there better uses for the land? Is it possible to create joint use facilities that are shared by the school and other higher education, community, or private sector companies and organizations? Can we do more to renovate and expand existing schools instead of building new ones?” I want all state agencies thinking broadly and creatively about the best ways to encourage smarter growth.

An even stronger way to make the connections between housing, transportation, quality of life, and economic development much more concrete is to tie future state funding to efficiency and quality growth. In other words, plans for development that will generate more traffic than the nearby roads can handle would not qualify for state funds. My administration will be certain that new development projects that are not located within targeted growth zones will have to pay for all necessary

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roads, sewers, parks, schools, and other infrastructure on their own.

Locating State Government Offices in Downtown Areas

Our state government should lead by example when it comes to making forward-thinking growth management decisions. Since our government controls the leasing and construction of its own office space, it should abide by the same Smart Growth principles that it encourages local governments and the private sector to adopt.

Delaware should select new state office leases and building construction based on responsible growth criteria that include: access to downtown areas, access to public transportation, use of redeveloped brownfield properties, and potential job creation through neighborhood revitalization.

Other states already have taken similar action. In 2000, for example, former Gov. Tom Ridge of Pennsylvania signed the Downtown Location Law, which encourages state agencies to locate new offices in central business districts. The law requires the Pennsylvania Department of General Services to establish guidelines for state agencies that facilitate downtown location. The law allows flexibility in considering factors such as the availability of public transportation, public safety, and local economic impact. California also has enacted similar state building location guidelines through executive order.

Preserving Farmland and Open Spaces

As a member of the state’s Agricultural Land Preservation Foundation Board, I have seen firsthand the value of our state’s efforts to protect our farms. The state’s Agricultural Lands Preservation Program has permanently protected more than 80,000 acres. 14 We must continue to fight sprawl by purchasing as many preservation easements from additional landowners as possible. Recent decreases in real estate values may provide a good opportunity to acquire additional easements at reasonable prices.

But there is more we can do to preserve farmland and

open spaces, including:

• Enhancing the conservation options for Delaware landowners who want to protect their land, especially those in designated rural areas. This starts with improving the financial literacy of landowners about their options and how best to structure their estate for the most financial gain and best conservation of land. Just as I helped champion the development of Delaware’s nationally-recognized Money School, I will support the development of a similar financial literacy and land conservation program to help Delaware’s farmers and landowners benefit from and preserve the land they love.

• Encouraging the use of Transfer of Development Rights (TDR) to protect greenspaces while allowing for future development. TDR programs allow for future growth within designated areas of a community, while maintaining rural greenspaces. This helps avert residential sprawl by directing development to areas that are more appropriate, such as near urban areas where infrastructure is readily accessible. TDRs protect open space at no expense to taxpayers and ensure that landowners do not suffer a reduction in property value that can accompany other zoning mechanisms. They also provide conservation- minded landowners with a financial alternative to development. And TDRs also can facilitate the construction of more affordable housing because they promote compact development. As governor I would work to establish a statewide TDR program, which would provide more opportunities statewide while overcoming the challenges posed by the limitations of local governments for land acquisition and transfers. My administration’s TDR program will coordinate with county officials so that development rights from a farm in Sussex or Kent can be used in a high-growth area of New Castle County.

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• Transitioning farms to produce high demand agricultural products. The most obvious way to preserve farmland is to preserve farms by helping to make farming profitable. Commodity crops such as corn and soybeans may not always be profitable to produce, although the recent use of corn and soybeans in the production of ethanol and biodiesel fuel around the country may prove otherwise. But the state also ought to work with farmers to consider growing consumer-oriented crops. For example, barley and hops can supply microbreweries up and down the East Coast, while organic vegetables increasingly are in demand in restaurants and grocery stores. Education and outreach regarding these market opportunities and investments by the state will be important. But if today’s commodity farmers choose to transition to these sorts of emerging agricultural opportunities, or at least to sell out to smaller value-added growers, horse farmers, and other agriculture-related farmers instead of developers, this could diversify our agricultural base in Delaware while preserving the land.

Transportation Ideas to Get Delaware Moving

In large part, migration trends over the past several decades within Delaware have reflected those throughout the United States. While Delawareans were concentrated in Wilmington for much of our state’s history, the post- World War II boom in automobile sales – along with the development of the interstate highway system – contributed to the rise of suburbs and outward expansion.

That trend continues today. Delawareans continue to move away from the city centers and spread out to less dense areas. However, most of our jobs remain in the cities – Wilmington, Newark, and Dover – and along the

major corridors like U.S.13, 40, and Delaware 1, 2, and

141. 15

As you would expect, this increases both the distance and time of our commutes. Between 2000 and 2025, the average trip length in Delaware is projected to increase by

9 percent, while the amount of time we spend in our cars will grow by almost half (48 percent). 16

By the year 2025 our elderly population will have grown three times faster than the non-elderly. 17 Many of these older Delawareans will prefer not to drive but to use public transportation.

With increases in travel distances and in the number of elderly, the demands upon our transportation infrastructure will be significant. Most of the responsibility will fall upon our state government. While states on average maintain about 20 percent of the roadways within their borders, Delaware’s Department of Transportation (DelDOT) is responsible for about 90 percent of the state’s 12,000 lane miles. 18

Most metropolitan areas across the country are experiencing the same congestion we are in Delaware. 19 We can learn from other states and communities that are beginning to implement new approaches to transportation planning: increasing the availability of high quality transit service, and ensuring connectivity between pedestrian, bike, transit, and road facilities. In short, our peers across the country are using a multi-model approach to transportation to create a variety of transportation options and take pressure off our congested roadways. It is incumbent upon state government to plan wisely for our future transportation needs, particularly in the following areas:

Reducing Congestion

To reduce congestion on our roads, I believe Delaware should:

• Make congestion reduction the primary goal of state investments in our transportation infrastructure. Congestion impacts our quality of life and harms the bottom line of our businesses. Small improvements in reducing traffic congestion improve worker productivity and make businesses more apt to remain in an area because they can operate more efficiently. As part of a broader effort to make DelDOT work more effectively, I believe the state ought to make congestion reduction the primary goal of state investments in transportation.

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In doing so, DelDOT would be required to invest in strategies to reduce congestion on our highways and roads, focusing on such major sources of congestion as identifying and removing accidents more quickly, eliminating known bottlenecks, coordinating traffic signals to improve traffic flow, and designating truck- and bus-only lanes.

• Invest in Integrated Transportation Management Systems. It is extremely costly to build new roads or add lanes to existing roads. But a more cost-effective way to reduce congestion is to invest in Integrated Transportation Management Systems. These systems rely on diverse technologies to improve traffic flow, communicate traffic conditions in real time to drivers to enable them to plan their routes to avoid congestion, adjust traffic signals, and coordinate incident management to identify, respond to, and clear accidents more quickly, among other strategies. Due to budget limitations, the state has implemented ITMS technologies covering only 250 out of the state’s 4,000 miles of roadways, focusing on the I-95 corridor, Dover, and Sussex County resort areas. I would propose funding the deployment of ITMS technologies that reduce congestion on the next highest priority 250 miles of roadways, based on DelDOT assessments of congestion, traffic volumes, commercial importance, and other factors.

Promoting Alternatives to Driving

• Improve DART bus routes to ensure that people can get to where they work. We need to systematically and continuously evaluate whether DART bus routes are serving their ridership adequately. The state needs to use rider surveys and gather feedback from employers and community organizations to ensure that DART routes are getting workers to their places of employment as directly as possible. As needs evolve and are identified, the state may need to invest in new buses and routes and re- adjust routes that no longer are meeting the needs of riders. (For example, I recently announced my support for implementing bus service on Sundays.)

Similarly, the state needs to look for more efficient ways to streamline school and public transportation. With school buses visiting nearly every area of the state twice a day, we should be looking at ways to use this important resource to help more Delawareans get where they need to go.

• Explore improvements to Delaware’s rail systems. Rail is one of the best ways to get Delawareans moving and encourage smarter development. Delaware should explore options like speeding the connection of the Septa and MARC systems to allow more people to travel by rail and bring workers and businesses into Delaware. We must focus on extending rail service where it makes the most economic sense. Northern New Castle County could benefit, for example, from new rail service connecting it to Aberdeen, Md., where thousands of new federal jobs are going to be placed in the coming years as part of the military’s base- realignment process.

• Encourage infrastructure development for walking and biking. We should be doing everything we can as a state to encourage pedestrians and cyclists. Getting more people out of their cars not only benefits the environment and reduces traffic, it is great exercise. As governor, I will make it a priority for Delaware to enhance existing trails and walkways and to encourage developers to include cycling and walking paths in new developments. It is my goal to make Delaware the friendliest state in the country for pedestrians and cyclists.

Demonstrate Leadership by Using Alternative Fuel State Vehicles

The days of cheap gasoline are over. In my chapter on energy, I discuss why it is important for Delaware’s economic and environmental security to reduce our dependence on oil and other fossil fuels. State government can and should do its part and lead the way by transitioning its fleet of vehicles to hybrids and alternative fuel vehicles.

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Delaware’s state government is a large consumer of energy and one of the biggest customers for new cars and trucks. Our state government should lead by example in the way it consumes energy and foreign imported oil.

Within six years, every car in Delaware’s fleet should be a hybrid or an alternative fuel vehicle. State government also should continue to champion the installation of alternative fuel pumps (like E-85 ethanol) by encouraging the purchase of fuel from suppliers that install alternative fuel pumps at their service stations. By leveraging the state’s fuel purchasing power, we can increase the availability of alternative fuels in Delaware and encourage Delawareans to help reduce our dependence on oil.

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Turning Ideas into Meaningful Employment (TIME)

Thirty years ago if someone had said that over the next three decades DuPont, Chrysler, and GM would lay off more than half their employees, but that Delaware would emerge in relatively good economic health, we’d have thought it was crazy. But we survived and even gained strength. We did it in part by adding to our “3 Cs” (chemicals, cars, and chickens) a fourth “C”: credit cards. This just goes to show that the only law of life is change.

Today our economy is changing again. Even in the financial services industry, which represented the progress of the last 20 years, employment has dropped during this decade. 20 Our population is growing and aging as so many retirees are moving here in search of low property taxes and the Delaware quality of life; and the ratio of workers to retirees is declining, which means we will need to dramatically increase workforce productivity to maintain the lifestyle that all these Delawareans, new and old, have come to expect. Meanwhile, companies can and do shift jobs all over the world. We clearly cannot rely just on our traditional industries. We need to create a Delaware that helps our existing companies grow and that develops new jobs, in new fields.

One thing I know how to do is build a business. And I know what it takes to help entrepreneurs be successful – more venture capital, more networking opportunities, and stronger ties between our colleges and universities and industry. But most importantly, in a time of change and global competition, more-of-the-same won’t cut it. Timid steps forward, or spending a little more money here and there on approaches that have worked before, will not work in the new world economy. Doing more of what we have been doing is not enough – it is time for change and bold leadership.

What does that change look like?

That is a complex question involving macroeconomic trends, corporate policies, unions, investors, demographics of the workforce, politics, and countless

other factors. But I offer this proposal: even as we continue to value and work with our traditional businesses, we also must make our state more attractive to a class of businesspeople who will help usher in a new economic era in Delaware – entrepreneurs.

Expert analysis and my own conversations with business owners confirm that Delaware is not considered supportive to entrepreneurship. In fact Delaware ranks in the bottom 10 percent of states in the Kauffman Index of Entrepreneurial Activity. 21 This means that fewer new businesses are started per 100,000 residents here than in almost any other state. The Council on Competitiveness also found Delaware lacking as a place attractive to entrepreneurs. We need to do better.

Clearly we value the immense contributions of our large employers. They have been mainstays of employment, civic involvement, and charitable giving for decades. They will continue to be major assets and, if we work with them effectively, potential sources of additional growth. However, some of our major employers have announced that they are unlikely to add significant jobs here, so we would be courting danger to rely on them primarily as major generators of big job growth in the future.

Instead, let us talk about what we should be doing to make Delaware more attractive than ever for the kinds of employers who will promote job growth and be good corporate citizens.

Creating the Right Climate

The most effective role government can play in economic development is to create an environment in which economic activity can be vibrant. Understand that is a different role from picking specific companies or industries to bet on. A very different role.

Here is what I mean. As I travel around the state, I am often asked what I believe will be the “next big thing”— the industry or piece of legislation that will provide the same sort of jumpstart the Financial Center Development Act did more than two decades ago. I think that is the wrong question to ask. Delaware should not be in the business of picking new industries to bet on, although we should be working closely with the ones already here, to help make them stronger.

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Now why is that? What is wrong with picking industries?

Let me put it this way. Earlier in my career I was fortunate enough to work at some great companies, including Nextel and Comcast. As an executive responsible for mergers, acquisitions, corporate strategy, and finance, I worked with some very talented financial professionals, including top-notch venture capitalists — people who make bets on specific industries and companies by providing startup funds to young businesses.

Even the best venture capitalists — those who make millions of dollars a year — make plenty of bad investments. Some people say that of every 10 investments made by good venture capitalists, seven will fail, two will do reasonably well, and one will be a grand slam. Those aren’t very good odds, especially if deciding who to fund is in the hands of government officials or others who are not highly trained and experienced.

There is another reason too: the dangers of the “follow the herd” mentality. Take biotech, for example. The biotechnology industry has huge potential. We have some terrific companies in Delaware that are likely to be very successful. Plus the state has done some good work to enhance their prospects of success — like creating the Delaware Biotech Institute and attracting groups like the Fraunhofer Center for Molecular Biotechnology. We should continue to nurture these types of enterprises.

But we need to be careful about placing too many eggs in the biotechnology basket, unless we find a unique niche where Delaware has a great chance of being more successful than other states. That is because other states also have biotech strategies and are pouring hundreds of millions of dollars into them. Some will be successful and some will not. The key for Delaware is to figure out our strengths, play aggressively to them, and avoid being a second-rate player in areas where others have a strong advantage.

If we are not picking specific industries, what specifically should we do? Let us start by identifying the kinds of companies we want to retain, grow, and attract.

Let’s face it., this is not the corporate world of The Organization Man, the book that described the loyalty

displayed in the mid-20th century by both employers and employees. Those days are long gone. Most employees these days can expect to have several employers during their careers. Employee turnover is high. Employer- worker loyalty is no longer a foregone conclusion.

The best employers today are those who pay decent wages, treat their employees with respect, and make every effort to provide them with chances to improve their skills so they will be able to take advantage of new opportunities as they come along. Those are the companies we seek. We also want good corporate citizens who will provide financial and time resources to the community and who are respectful of our environment. Companies who support “green” technologies will be increasingly valuable members of our corporate community.

So how do we attract, grow, and retain these types of terrific employers? To answer that question, we must put ourselves in their shoes. What do they care about most? Honestly, it’s not that complicated.

An educated workforce is at the top of the list. The best companies choose locations with great education systems and skilled workers – even over those with low taxes 22 (not that the two are mutually exclusive and in fact, we must make sure that they are not). It is clear that in addition to investing in businesses, we must invest in the human capital needed to support the industries we want to grow.

Within the next 10 to 15 years, nearly two-thirds of all jobs will require some post-secondary education. Delaware will need to increase the number of four-year degree and associate’s degree holders and certificate holders simply to keep pace with changing knowledge and skill demands required by employers. In order to attract companies and grow our economy we must focus workforce development on industries that represent our future, increase education and training opportunities, and modernize our approach to develop a skilled workforce.

Delaware must work with businesses to design curricula that reflect the basic skills and requirements of the kinds of knowledge-based businesses we want to attract. Our neighboring state, Maryland, took on the challenge over a decade ago to align its economy and workforce development efforts. Maryland identified 10 broad career clusters linked to that state’s “key economic sectors.” They

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then incorporated substantive contributions from industry advisors to create the “knowledge and skills” components of these career clusters. States like Kentucky and Virginia have instituted programs to gauge the skill levels of their workforce. Career readiness certificates confirm to employers that an individual possesses basic skills in reading, math and finding information – skills which all businesses need. And here in Delaware, Delaware Tech has worked closely with companies and trade groups to align its curriculum with the needs of employers. State government, working in partnership with industries and businesses, can offer integrated workforce training programs to retool workers and equip our children with the skills to compete in the future.

We also must continue to focus on our quality of life so we can be, as Bill Gates describes it, “a place where talent really enjoys coming there, and working there, and raising their kids in that location.” 23 Delaware has done a lot in this regard — from the redevelopment of the Wilmington Riverfront, to the preservation of our Coastal Zone and farmland from overdevelopment, to the Livable Delaware initiative, to strengthening arts organizations and other cultural treasures. Of course we need to do more. That includes making our health care system available to more Delawareans and accelerating the improvement of our transportation and broadband communications networks.

Playing to Our Strengths

We must also play to our strengths. Delaware has long been known as a “corporate capital” with streamlined business practices and low taxes — the third lowest in the nation, according to the Tax Foundation. 24 Delaware has a concentration of corporations in the automobile, chemistry, financial services and insurance, and corporate legal services markets. Our strong legal services industry is a prime example of how industries with high paying jobs can grow given the right climate. Protecting our franchise as the best legal environment in the country and, in fact, building on it, is a crucial economic development goal.

Delaware’s intellectual and economic firepower is recognized worldwide. The Wilmington region produces patents at more than three times the national average. 25 Delaware companies are leaders in some very exciting

areas. In addition, Delawareans are more productive than workers across the country. While our wages are close to the national average, our cost of living and cost of doing business are below the national average. 26 Our proximity to major markets is a big plus for our region as well.

Entrepreneurship and “Growing Our Own”

Just as government is not well suited to picking future blockbuster industries, government also is not the ideal provider of entrepreneurship support services, which we shall examine in a moment.

Instead, state officials must make a vigorous effort to promote and value a culture of entrepreneurship in the private sector. As a report of the National Governors Association suggests, “This means that we must adopt policy changes aimed at meeting the most compelling needs of entrepreneurs.” 27

A comprehensive study done for the National Governors Association (NGA) identified five steps governments can take to become an “entrepreneur friendly” state: 28





development efforts.

Use the education system to nurture future entrepreneurs.







Facilitate the investment in diverse sources of








“Get out of the waythrough regulatory reform.

The state of Delaware already is pursuing some of these excellent recommendations. With leadership from the private sector and state encouragement, we could create an explosion of entrepreneurial growth that future generations will look back upon with gratitude.

Such a model may be emerging in Delaware.

Since 2004 I’ve been part of an exciting effort to create more entrepreneurial activity in Delaware: the Delaware

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Entrepreneurial Action Group. Chaired by my friend Ernie Dianastasis, this group of highly successful

entrepreneurs and venture capitalists recently launched

a nonprofit entity called First State Innovation. Its

mission is to “connect entrepreneurs with traditional seed capital, access to alternative funding, skilled human capital, commercial capitalization assistance, entrepreneurial resources, and intellectual capital.” 29

In 2003, the Council on Competitiveness conducted an

assessment of the competitiveness of the Wilmington region. Besides identifying the need to make Delaware more attractive to entrepreneurs that I just discussed, the assessment also suggested that we improve linkages among academic institutions and the corporate sector in Delaware.

Improving Our Economy Through Our Academic Institutions

To create the strong academic-corporate links that can produce future entrepreneurs, states such as Maryland and Iowa have developed entrepreneurship certificate programs in fields as diverse as engineering and liberal arts. 30 The program at the University of Maryland is a great example. More than half the spots in the program are reserved for students from outside the business school. Students take four courses in entrepreneurship and then develop in-depth business plans in the final semester.

Entrepreneurship education initiatives at the University of Delaware have achieved recognition. In both 2003 and 2004, the university’s Alfred Lerner College of Business and Economics was named one of the Nation’s top 100 entrepreneurial colleges and universities by Entrepreneur magazine. The college offers a variety of entrepreneurship courses and programs, including a program for teachers in the Center for Economic Education and Entrepreneurship, a new concentration in venture creation for MBA students, undergraduate courses in small business management, and the opportunity for students to work on real-life projects with the Delaware Small Business Development Center. 31

We need to applaud these important and timely efforts. We also need to broaden and increase them.

Another important way to use our higher education

resources is to support faculty entrepreneurship. While government should not try to turn professors into entrepreneurs, it should be prepared to leverage commercially viable research and ensure institutional support for those faculty who are interested in entrepreneurship. 32 To do this, the National Governors Association’s “Guide to Strengthening State Entrepreneurship Policy” recommends questions we need to be asking:

“Are faculty members encouraged by the administration to pursue entrepreneurial ventures and/or to collaborate with private industry and entrepreneurial companies?

Do university intellectual property policies discourage entrepreneurship or the commercialization of research results?

What sorts of resources, such as sabbatical leaves, do our institutions provide to assist faculty entrepreneurs?

Do faculty union contracts have supportive provisions such as adequate time for outside consulting?

Would faculty entrepreneurs be encouraged by their peers if they pursued an entrepreneurial business venture?

Can universities become equity partners in such ventures?” 33

Such collaboration is not meant to change the fundamental goal of our educational institutions — that is, teaching, and scholarship — but offers many win/win possibilities for education and commercialization. Dave Roselle, the highly regarded former president of the University of Delaware, has outlined a series of ideas to leverage resources and encourage faculty entrepreneurship. Professors often aim to attract grants from corporations and organizations like the National Institutes of Health (NIH) and the National Science Foundation (NSF) in order to finance their own research projects. Roselle has suggested that state government offer matching funds for such grants. So a $2 million NSF grant might include $400,000 from the state. Roselle believes that funders would find such matches highly attractive, bringing more outside funds into Delaware institutions.

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Finally, we should explore the idea of a university venture fund as a means of spurring economic development. Michigan’s successful university venture fund is the most active such program in the nation. The University of Michigan’s Wolverine Venture Fund (WVF) has been making strategic investments in early-stage, technology- oriented companies since it began in 1997.

The WVF is run as a collaborative effort among the private sector, the faculty and the students at the University of Michigan. When an entrepreneur submits a funding request, the largely student-run WVF creates an investment proposal the students eventually will defend to a senior advisory board of venture-capital professionals. If the board approves, the WVF invests in the company. The investment typically totals between $50,000 and $200,000 for seed and first-round expenditures in the project. Among the most noteworthy aspects of the WVF is its innovative funding method. “Seeded” with a one- time endowment from the university, the fund’s proceeds funnel directly back into its own reserves. 34

Increasing the Availability of Risk Capital

Google. Amazon. Many of America’s most successful companies have developed thanks to the financial and intellectual resources provided by venture capitalists. In Delaware, the old Juniper Bank (now part of Barclay’s) and the growing are two examples of venture-backed organizations. And there are a few small local venture capitalists, including the Delaware Innovation Fund (DIF) and Inflection Point ventures. But generally, Delaware lacks venture capital resources.

Without local venture capitalists pounding the pavements, looking for deals and connecting entrepreneurs, we’re not making the most of our potential for economic development and job creation.

Why does all this really matter? According to the National Governors Association’s Center for Best Practices, risk capital serves five basic functions: 35

It is used for research and development (R&D). In certain fields such as biotech, R&D is critical.

It is used as “innovation capital,” which funds

applied research to develop new products.

It is used as “seed capital,” which underwrites the entrepreneurs and other new and young companies that do not have fully established commercial operations. These firms may not be eligible to obtain traditional funding and the seed funds help them continue research and product development and to launch new products.

It is used as “venture capital,” an institutional means of financing high-growth, risk-oriented, innovative businesses that cannot get funding through traditional bank routes.

It is used as “mezzanine capital,” which finances profitable, established companies, generally in the form of subordinated debt.

I collaborated with David J. Freschman, president and CEO of the Delaware Innovation Fund (DIF), on a 2001 study and report to the Strategic Economic Council of the State of Delaware on the impact of venture capital in Delaware. David knows firsthand about the role of venture capital in business. The DIF is a $10 million private nonprofit venture capital firm established in 1995. It provides investment funding and other help to encourage the growth of startup and early-stage high-tech companies in Delaware and throughout the Mid-Atlantic region. The other help comes in the form of technical assistance through business counseling, entrepreneurial seminars and the DIF’s wide network of professional resources.

In our report, we identified the role other state governments have played in the development of venture capital:

Venture capital has become such an important component in the creation of economic development that many states see this financing tool as a critical component to their economic development initiative. In fact, 31 states have allocated state funds to venture capital; 17 provide tax incentives to encourage venture capital investing; 19 direct state pension funds to venture capital; and 10 use other state fiduciary funds. 36

According to the Progressive Policy Institute, Massachusetts and California led the nation in 2002 for venture capital as a percentage of gross state product

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(GSP). Delaware ranked 26th, with just 0.3 percent of its GSP devoted to venture capital. (The national average in 2002 was 1.1 percent.) 37 As David and I pointed out in our report, there simply isn’t enough resident venture capital available in Delaware to make meaningful investments.

A Capital Idea for Delaware

Delaware must do more than put its toe into the water when it comes to venture capital. It is unlikely we will be able to attract the quality of investors and level of interest that is necessary to promote meaningful economic activity with an investment of less than $50 million.

Of course, that does not necessarily mean the state needs to provide the money itself. In fact, state general operating funds are a poor choice as a source of these funds. There are other ways that states can generate venture capital, as I will outline below. And in no case should the investing decisions be made by state employees, elected officials, or anybody other than experienced investors with a strong track record of investing.

Creating the right venture capital environment is also about more than the money. That is why a strong support mechanism like that proposed by First State Innovations is important, because it can provide some of the services and networking opportunities that entrepreneurs need to be successful.

Some states offer handsome incentives to angel investors whose monies are most often used to provide seed capital for newly formed businesses. Typically, tax credits are 20 to 30 percent of the amount invested. Virginia, Maine, Vermont and West Virginia offer credits of up to 50 percent, subject to some limitations. Hawaii offers a tax credit of up to 100 percent over five years in qualifying high-technology businesses. 38

Iowa adopted an “angel investor” law as part of a comprehensive program to establish infrastructure for venture capital development. The law allows a tax credit of 20 percent of the amount of a cash investment made to purchase equity in qualifying businesses and community- based seed capital funds. Tax credits can be used against personal and corporate income taxes, financial institutions’ franchise taxes, insurance premium taxes, or

the credit union moneys and credits tax. An individual investor can claim up to $250,000 in a single year (five individual investments in five separate qualifying businesses). The maximum amount of tax credits authorized under the legislation is $10 million. 39

Utah, Michigan, Ohio and South Carolina have all availed themselves of a new form of financing venture capital activities. They have borrowed funds from major financial institutions and have used the funds to invest in venture capital firms which commit to search for local venture capital deals. The states commit to issue tax credits if the loan is not repaid.

Closer to home, Pennsylvania invested $2 million in Ben Franklin Technology Partners of Southeastern Pennsylvania. The grant was designed to insure angel investors for up to 25 percent of their investments, to a maximum of $200,000. Investors pay an annual fee of 1.5 percent of the total invested for this coverage. According to an independent analysis, this investment has created tens of thousand of jobs, more than $400 million in state tax revenues, and a stunning 23:1 return on the Commonwealth’s money. 40

Oklahoma, Colorado, New Mexico, and Massachusetts have made investments in a non-traditional venture firm,

which invests in successful small local businesses with the potential for nationwide and global expansion but lacking resources and expertise. The states make investments into

a venture fund. The venture fund in turn raises matching capital and then finds small businesses in underserved

areas in which to invest. The venture fund forms a board of directors for the small business and provides experienced entrepreneurs who add value to the management and direction of the small company, allowing

it to grow. State investments yield a double bottom-line –

they grow companies and jobs in their state and receive a return on their investment. Small businesses which receive capital have the option of buying out the venture shares in their business, or shares are sold at a profit and returned to the state.

We should all take a lesson in financing from Muhammad Yunus, winner of the Nobel Peace Prize. Mr. Yunus won the prize in recognition of the practice of microlending in Bangladesh. Yunus built a successful bank by providing

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affordable business loans to those who ordinarily would not have access to start-up capital through traditional lending institutions. Ironically, small businesses in this country usually list as their number one impediment the lack of access to capital. Traditional lenders look for businesses with an established track record and credit history. Many first-time entrepreneurs find it almost impossible to borrow the money they need to start a business.

States can invest in and support micro-lenders. These lenders traditionally provide loans to businesses with less than five employees who have been turned down by a traditional bank. The federal government has programs to make capital available to micro-lenders which can be matched by states to create a larger loan pool. For example, New Mexico has invested a million dollars in existing micro-lenders. While the State gets a return on their investment money, they also fuel the growth of small businesses in New Mexico.

We should not be reluctant to emulate other states’ successes. We should look into how business capital programs that have benefited other states could benefit Delaware if we adopted something similar here.

Promoting Exports for Delaware Companies

If we are smart about it, we can turn some of today’s global economic changes into real opportunity. Hundreds of millions of new middle-class families are emerging around the world. That means Delaware companies can grow by selling more of their goods and services overseas.

In February 2006, I invited Jim Lambright, president of the U.S. Export-Import Bank, to Delaware to join me, along with Judy McKinney-Cherry of the Delaware Economic Development Office and officials from the World Trade Center Delaware, to kick off a new partnership between our state and the Ex-Im Bank. The bank, which has been operating for more than 70 years, is an independent U.S. government agency that helps finance the sale of U.S. exports primarily to emerging markets throughout the world by providing loans, guarantees and insurance.

Our partnership, which is aimed at helping Delaware

companies expand their exports, represents a commitment on the part of the Ex-Im Bank to promote a range of their products and services. So for example, Delaware exporters can be confident that they will be paid when shipping their goods to other countries. This new partnership represents an important advance in helping small businesses in Delaware become competitive in the global economy.

“Small businesses offer the greatest potential for export and job growth within the U.S. economy. Our partners ensure that these small firms have access to the same expertise and export opportunities as large companies and foreign competitors.”

—James H. Lambright, president, Export-Import Bank of the United States, 2006 41

An important role of the governor is to seek out and open up markets for trade. This effort has to be a partnership with the business community, which can help identify opportunities abroad and lead to the development of trade missions, bilateral trade agreements and other business- specific relationships.

But Delaware should be doing much more to broaden its appeal internationally. In addition, to plant other seeds of future economic opportunity, the state should build on our “sister state” relationships with cities and state-like subdivisions of other countries. We should be developing grant programs for our universities and even community groups to create different forums for international activity and interaction, ranging from the recruitment of students from abroad to attend our colleges to sending Delaware performing arts groups abroad. Some of these talented students might decide to stay in Delaware and do great things. But even if they return to their home countries, they may start up their own companies and become entrepreneurs and be more favorably inclined to do business in Delaware. And we should market Delaware as a tourist destination for international visitors – a gorgeous place to visit and relax.

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Promoting Economic Development in Rural Delaware

As I travel across the state I hear a common refrain from parents, especially in Kent and Sussex Counties. They tell me, “I want my kids to be able to come home after college, get a great job and settle down. We know they love the quality of life here, but they’ll only come back if they can work at something they love and get paid what they’re worth.”

This is a huge issue for Delaware. Certainly, Kent and Sussex Counties are booming — and this boom will create plenty of job opportunities. But so far, most of those jobs have been relatively low-paying ones in the hospitality and tourism industries and in health care.

Delawareans want more. So what do we do?

Over the last few years, I’ve spoken extensively with friends who have focused significant time and attention — with terrific results — on rural economic development. One of them is Mark Warner, the former governor of Virginia and one of the founders of Nextel. We met back in 1989, when I joined the company as its 13th employee. Gov. Warner’s Virginia Works initiative represented a series of targeted investments designed to create new jobs in rural Virginia. Its main features included:

Aggressive recruitment of new employers to rural and small-city areas of the state;

Investment in a network of rails-to-trails (turning unused railroad rights of way into hiking and bike rails) to promote tourism;

An initiative to promote the sale and marketing of handmade Virginia arts and crafts through Artisan Centers and cooperatives of artisans (a strategy that also has been aggressively followed in Kentucky 42 );

A program well-received by employers to launch an advanced manufacturing or packaging program at a community college;

Export assistance for small manufacturers in distressed areas to stem the flow of manufacturing jobs overseas;

Support for specialty agriculture through additional research at local academic institutions and the development and marketing of high- value specialty agricultural production;

Creation of a Virginia Community Development Bank to provide capital to new and expanding businesses in rural Virginia; and

Support for rural high-speed broadband connecting schools, hospitals, businesses and industrial parks, and allowing commercial carriers to connect homes at a lower cost.

Another example is Iowa, a highly rural state. Iowa has done a fine job of transforming its economy by finding the intersection of agriculture, university research, and industry. Thanks to major investments in venture capital, energy regulation reform, export assistance, and other initiatives, it is on a real roll in terms of increases in jobs, exports, and income. 43

The Iowa story is an interesting one for Delaware, given the importance of agriculture to our state. A significant number of Delawareans work in agriculture, food and related industries. Production agriculture alone contributes hundreds of millions of dollars to the state’s economy. Beyond that, agricultural industries are top multipliers in our economy. This means that every time agriculture grows, it generates an even bigger increase in Delaware’s overall economy. 44

Preserving farmland not only contributes to our quality of life, it helps attract desirable new agribusiness to our state. A good example is Picsweet Frozen Foods, which came to Sussex County to process vegetables and thereby generated millions of dollars for local farmers. By preserving our farmland, we ensure that such industries will continue to prosper and generate jobs and revenue for Delaware. 45 Conversely, the loss of farmland leads to other economic losses such as the loss of processing plants, machinery sales, transportation, and more. 46

Farmland also provides an equitable tax base for our citizens. For every $1 paid in taxes, farms require just 50 cents in public services. For that same $1 in taxes, residential land demands $1.20 in services such as police, schools, and roads. 47

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Given our strength in biotech, it seems only logical that our rich agricultural heritage and our regional expertise should dovetail. An example of the kind of business synergy I’m thinking of is Pioneer Hi-Bred. The company was founded in Iowa in 1926 to meet a need that arose in the cornfields of that state — the challenge of producing disease-resistant corn in order to increase the crop’s annual yield. Determined to create a hybrid seed, founder Henry Wallace and his associates planted small plots again and again, tested and retested their results, and convinced thousands of farmers to try something new. The company was so successful that it caught the eye of DuPont, which acquired it in 1999.

What made Pioneer so successful? For one thing, it has always had a philosophy of responding to change in markets and taking what it calls “the long look.” 48 One Pioneer leader attributes its success to its proximity to great research resources in Iowa, along with the market for corn products and the labs for testing. In his view, Delaware has many of the components necessary to achieve similar agricultural/biotech success.

There are several ways we can capitalize on our strong heritage in agriculture to promote economic growth and development. Pioneer provides one. Iowa’s investment in bio-based fuels offers another. Although ethanol production may not be a wise investment here – while it would increase the demand and price of home-grown corn, it also likely would divert corn from our poultry industry and drive up industry costs – there are likely ample opportunities in other areas. And in Delaware, the work of several local companies and institutions represent innovative approaches to applying plant science technology to research and development in lieu of developing products in much more expensive laboratories.

Also, we could diversify some of our agricultural production towards specialty niche markets that are growing increasingly popular among consumers. For example, organic produce no longer is confined to weekend farmer’s markets and expensive health food stores. Nowadays, most supermarket chains include organic produce and products as part of their regular offerings. And if anything, as New Castle County’s new initiative suggests, we should be linking farmers providing the healthiest, freshest produce with our school districts,

which not only gives farmers a large, ongoing market for their produce but obviously benefits the children who consume it.

If it can be grown or raised, Delaware farmers can do it with the best in the country. The state simply has to listen to the agricultural community, support its efforts to take advantage of these opportunities as they emerge and help develop and market the Delaware agricultural brand.

Finally, with respect to our rural economic development strategy, we can learn from what other states have done to attract high-tech businesses to remote areas with a great quality of life. Thirty years ago, when the nation’s focus was on growing our industrial base, rural economic development policy was geared toward creating infrastructure that would provide utilities, water, and roads to attract large facilities. In the 21st century the infrastructure most important for a rural area to be competitive is broadband capacity.

Making our Economic Development System Work for Delaware

I firmly believe, not just as a former businessman but as someone who oversees the state treasury, that the state should not be in the business of betting on the next great industry. Instead, the state’s economic development strategies most certainly should focus on creating the type of business climate that good employers want. In my experience and in listening to what business leaders tell me they are seeking, a healthy business climate includes:

Creating an educated, skilled workforce. The state should be investing in order to intensify our efforts to make our schools world-class as well as in programs that help current workers receive training in the skills and knowledge that employers desire most;

• Enhancing our superb quality of life to further attract educated, skilled employees and the businesses that seek them. The state should invest in programs and policies that protect our natural resources, strengthen our local communities, develop arts and culture, highlight our lifestyle, and provide ample opportunities for professional, social, and personal enrichment and enjoyment;

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Playing to Delaware’s many strengths, not only as a favorable place to incorporate and do business, but building on the wide varieties of industries, facilities, and areas of expertise that are found here, from financial services to biotech to agriculture to manufacturing.

In addition, there are a few other things Delaware should do to improve its business climate. First, it should re- examine its business tax incentives to be sure that they are doing what they are intended to do – attract, support, and retain the kinds of businesses and industries that will enable the state’s economy to grow and prosper. I am less interested in tax incentives that just give away the store in order to attract any business to Delaware. In my view, that simply puts Delaware in a race to the bottom with other states. If we have done everything possible to develop an educated and skilled workforce, enhance our quality of life, and build upon our strengths, businesses will come to Delaware, create jobs and stay here.

But there are certain business activities we should encourage, and tax incentive programs should be geared to do just that. Obviously, we want businesses to create jobs. But I do not think we should reward businesses for creating jobs they would have created anyway. Instead, our job creation incentives need to focus on creating jobs with above average wages in any given industry sector, jobs with employee benefits and jobs in industries that will grow our future economy. Similarly, we should provide incentives that encourage business investment in research and development, in part because they lead to the creation of higher wage, higher skilled jobs, but also in part because research and development usually is the precursor to business growth.

Second, where the state does step in and provide incentives, there should be mechanisms in place to ensure that the promised outcomes occur, whether it is the creation of good jobs, investments in research and development, redevelopment of brownfields, or whatever the focus of the incentive is. And in those instances where the results did not pan out, there should be clawbacks and other mechanisms that can be used to hold corporations accountable and require them to return Delaware’s investment.

Third, we need to be sure that the state’s economic development agencies are best organized to identify economic opportunities and challenges and make it easier to assist Delaware businesses. Delaware’s economic development officials should not only have access to real-time databases of available land and facilities for business attraction or expansion, information regarding all available financing and incentive programs, and workforce development programs, but they should also be thoroughly up to date with respect to the competitive offerings of other states. And Delaware should establish early warning systems to ensure that we can identify businesses that might be heading for financial trouble or may consider leaving the state long before those things occur.

Finally, the state needs to be aggressive about making investments in the kinds of infrastructure that may help attract and retain businesses — from broadband and telecommunications to water and energy to efficient transportation arteries which help move goods and services to market. With each of these, the state needs to work closely with the county and municipal governments throughout Delaware to prioritize needs and funding.

Even as workers around the globe aspire to our jobs, even as governments in other states and countries try to convince our companies to relocate, even as our own employers struggle with managing costs in a hyper- competitive business environment, Delaware can thrive. We have what it takes — a great workforce, improving schools, a community-minded spirit, and a terrific history of public-private partnerships. Those all represent a great foundation on which to build.

Now is not the time to relax and take our eyes off the ball. In fact, now is the time to recommit ourselves to investing in our future — in innovative education and economic development — for our own sake and for the generations of Delawareans who will follow.

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Enhancing Delaware’s Safety and Security

When compared to other states or the nation as a whole, Delaware’s crime statistics paint two different pictures. On the one hand, we have less property crime than the rest of the country and other states in our region. But sadly, we also have higher rates of violent crime than the rest of the country.

While a low property crime rate is something to feel good about, it does not mean an absence of crime, and it is no consolation to those who are victimized by crime. Violent crime is one of the most pressing concerns of any society, and certainly violence against another person never should be condoned or tolerated.

One of the most fundamental responsibilities of government is to protect the safety and security of its citizens. As governor, I will work tirelessly to do so and will make combating crimes of all sorts a priority. Here is how:

Where We Are

The actual number of crimes in Delaware seems low because our population is smaller than most states. But if you stack our rate of crime per 100,000 residents up against the crime rates found in the U.S. as a whole or other states in our region, it becomes clear that certain serious crimes jump out as particular problems in Delaware and must be addressed.

as particular problems in Delaware and must be addressed. Our property crime rates in 2005 were

Our property crime rates in 2005 were lower than both the national and regional average in all categories. Our murder rate also was lower than both the national and regional averages. But for all other violent crimes, including rape, aggravated assaults, and overall levels of violence, our crime rate exceeded both the regional and national averages.

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In looking at Delaware’s crime levels over the past 40 years, in general there are lots of good things to report. The overall rate of property crime in Delaware has dropped in all but one year since 1998 and is at the lowest levels experienced since the late 1960s. Our property crime rate is about half the rate of property crime rates experienced in 1980, when property crimes generally peaked in the United States.

What is not good these days is the rate of violent crime in Delaware. Although the violent crime rate is 17.1 percent lower than the highest annual rate of violence recorded in Delaware (1998), this rate is still much higher than it was prior to 1990, when the annual rate of violent crime ranged from 430 to 560 violent crimes per 100,000 people. But since 1990 the rate of violent crime has never fallen below 600 violent crimes per 100,000 people. I think this is simply not acceptable.

In short, for the public to feel safer, we must continue to do everything possible to continue to maintain reductions in property crimes, but we must get smarter and more proactive about how we address violent crimes.

More Law Enforcement vs. More Social Services: We shouldn’t have to choose

For decades, there have been two primary schools of thought about the most effective way to fight crime.

Some experts contend that the most effective way to fight crime is to crack down on criminals and crime itself. The focus of this approach is to provide more police, better crime-fighting technology and tools, and tougher sentences to take criminals off the street for longer durations and deter would-be criminals from criminal behavior.

Other experts view crime as the end result of failed social policies, poor education, poverty, inadequate support services, and racial prejudice. As such, a society cannot jail itself out of crime problems. These experts argue that to make meaningful in-roads into stopping crime and violence, government and the community should invest more in the education of children, job training skills for young adults, and programs to eliminate or minimize the

harms caused by poverty and prejudice.

Great wisdom can be found in both approaches, but neither, tried to the exclusion of the other, is going to be particularly successful for long. In addition, crime and criminals evolve and adapt, and no one strategy is going to work well indefinitely. Further, both approaches tend to downplay personal responsibility for one’s own behavior. The law enforcement-dominated approach presumes that people will fail and stands ready to pounce and put them into the system. By the same token, the “root causes” approach all but suggests that society is to blame for a given individual’s failure to abide by the law.

An effective crime strategy for Delaware should involve all of these elements, and some new, creative thinking. Our state must start with good, tough law enforcement that can and will protect the safety and property of all Delawareans. At times this can mean more law enforcement personnel. Given the gutting of the successful Federal COPS program, which helped put well over 100,000 more police officers onto American streets during the 1990s, more officers are needed. But more often than not, it means smarter law enforcement — that is deploying officers in a targeted manner to identify and apprehend those criminals who are causing the most crime.

Our law enforcement officers must be backed up by a criminal justice system that works effectively. If jails do not have enough space and arrestees cycle immediately back onto the street, this undermines the work of law enforcement. If sentences are not harsh enough, or are consistently plea bargained down to lesser offenses, offenders will be quickly released and likely to commit crimes again. And if resources are insufficient to address some of the root problems that underlie certain criminal behavior — alcohol and drug addiction, a lack of job skills or employment opportunity — the chances that an offender will return to doing what he knows — crime — is higher.

Law enforcement and the criminal justice system cannot fix all of the serious problems of society and individuals. They are a last ditch effort to control behavior and protect others. Furthermore, the “system” is costly. But the taxpayers of our state will be better off and will save money

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if more people are educated, learn job skills, have the opportunity to work, use less alcohol and other drugs, and develop a sense of personal responsibility and attachment to their families, friends, and communities.

What follows are my ideas to improve public safety. But these ideas only deal with part of the problem. In some respects, much of the rest of this book, offering ideas to create jobs and opportunity, improve education and enhance the quality of life in our communities, is as important to ensuring public safety as the ideas that follow here. So where do we begin?

First Things First: Developing a Comprehensive Statewide Public Safety Plan

Despite all of the public’s concern about public safety, state government agencies are not necessarily required to work together according to any agreed upon plan or strategy. Without basic goals or objectives or a plan for accomplishing them, it is difficult to get things done. As a first order of business, I would instruct my trained law enforcement professionals to develop a comprehensive state criminal justice plan. This plan would:

Include up-to-date statistics regarding crime in Delaware;

Establish annual goals and objectives;

Provide a plan for sharing resources and developing partnerships to achieve those goals and objectives.

For example, if the goal for a coming year were to reduce incidents of domestic violence by 5 percent, the plan might include commitments from the State Police, local law enforcement departments, state-funded victim service programs, the courts, the Department of Correction and the state probation program to fund and implement joint programs that target repeat offenders and assist victims, as well as outreach programs to educate at-risk individuals.

Similarly, a goal of reducing prescription drug abuse among school-aged teens by 10 percent could lead to partnerships among law enforcement, the Board of Pharmacy, and the Department of Education to develop

and fund education, outreach and treatment programs to help meet that goal.

Establish a Delaware COPS Program

Nearly 10 percent of Delaware’s law enforcement officers — about 220 — were hired as the result of increased federal funding from Sen. Joe Biden’s revolutionary 1994 Crime Bill, which established the Community Oriented Policing Services (COPS) program 49 , putting more than 100,000 police officers on streets nationwide. An October 2005 General Accountability Office study attributed a 10 percent decline in America’s crime rate during the 1990s to the hiring and deployment of these additional police officers. Clearly this program was working.

But during the Bush administration, federal funding of local law enforcement has been cut by about $2 billion. At the same time, more federal FBI and DEA agents have been taken off traditional crime-fighting responsibilities and re-assigned to terrorism-related duties. Therefore state and local law enforcement has to try to pick up the slack. And our local law enforcement officers now have increased homeland security responsibilities as well.

Given federal deficits and the costs of the ongoing war in Iraq, it seems unlikely that the federal government is going to come up with significant funding for local law enforcement in the near future. But I do not think Delaware can or should wait around for federal help. Nor can we continue to expect significantly better public safety results from our law enforcement agencies without giving them the proper support. As governor, working in consultation with the Delaware Police Chiefs Council and the League of Local Governments, I would establish a Delaware COPS grant program to help fund the hiring and equipping of 200 new police officers over a four-year period. These funds would give local police departments flexibility to staff up as they deem appropriate, either by hiring new police officers or by hiring civilians who can relieve sworn officers of administrative duties so that they can be redeployed to much-needed crime-fighting responsibilities.

Under this program, the state would pay 80 percent of the salary of a new police officer for two years, the remaining 20 percent of which would be matched by the city or town

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where the officer was employed. Similarly, the state would pay 80 percent of the salary of a new civilian hire for two years, if that hiring directly led to returning a sworn officer to patrol duty. In addition, the state would provide up to $10,000 per year to help train and equip the officer.

Sheer numbers of officers are just one part of the equation. I will also see to it that Delaware invests in smarter law enforcement by:

• Partnering with local law enforcement. The state can provide grants to help local law enforcement agencies beef up their intelligence gathering capabilities, which in turn can help focus police resources where they need to be. The state can help local agencies obtain new crime-fighting technologies and train them in their use. True problem-solving policing needs to have the right data and information to correctly identify crime problems in as close to real time as possible and to help pinpoint police strategies to solve them. This is the basic approach used by the most successful law enforcement agencies in the country, such as the New York City Police Department, which has produced an incredibly sustained reduction in that city’s crime, violence, and disorder during the last 15 years. Effective problem-solving law enforcement agencies do not focus on any particular traditional benchmark, such as arrests, but rather on answering the most relevant question of all: “Have we solved the problem?”

Funding coordinated training and assistance programs to help establish local community crime-fighting councils. The councils would bring together local health departments, housing and zoning agencies, public works departments, and other local agencies to work with police departments to address particular problems. With this knowledge, law enforcement agencies can target and close down criminal hot spots using civil and criminal sanctions, assisted by the resources and expertise of the task force members.

Establishing a specially-trained State Police Task Force unit of experienced state officers who will be available to serve, upon request, in coordination with local police departments. The Delaware State Police may have the expertise or the resources that may not be available to local jurisdictions, in such areas as gang violence, car thefts, and gun crimes. These officers will be available to assist local departments to address particular crime problems that temporarily overwhelm local agencies and resources. The Delaware State Police also has a highly specialized high-tech crimes unit that can assist local law enforcement in addressing the complex and ever growing world of cyber-crimes, including internet child predators and a unit that targets career criminals.

Keeping Children and Families Safe

Nothing is more important to me than being a good husband and a good father. And being a good husband and father means looking out for the safety and wellbeing of my family. I want to be sure that the state is doing everything possible to keep children and families safe. Here are some things that we can and must do.

Domestic Violence.

According to the State Bureau of Identification there were 16,310 criminal instances of domestic violence in Delaware in 2006, about 250 more than 2005. This is the first time incidents have increased since 2001—we are moving in the wrong direction. About 15 percent, or 2,509, of these incidents in 2006 resulted in injury. Family Court issued 1,711 Final Protection from Abuse orders, while the statewide domestic violence hotline received almost 3,100 calls in 2006. Crime victim advocates throughout the state helped nearly 1,500 domestic violence victims navigate their way through the criminal justice system. And 581 women and children received shelter services in 2006 50 .

We must remember that behind these statistics — behind each and every number — are real people, mostly women and children, who have been impacted by violence, abuse,

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and fear. Delaware has a good network of services available for victims of domestic violence. It has strong laws in place to punish offenders. But there is more that we can do.

First, the state must continuously reinforce the message that family violence is never acceptable and will not be tolerated in our state. Every state agency has a role to play in getting that message out. The state can include information on domestic violence, resources for victims, and put the statewide domestic violence hotline number on state websites, on lottery tickets, in newsletters, even in mailings from the Department of Motor Vehicles, among other places.

Second, in order to give victims more peace of mind and to remind perpetrators how serious Delaware is about protecting victims, the duration of a long-term order of protection from abuse should be extended from one year to two years, and victims should be allowed to renew those orders on an annual basis after that if they choose.

Third, the state must continue to support efforts to cross-train law enforcement and other allied professionals about family violence — what to look for, how to help victims, and where to refer them for other needed services. Our state has made great strides in this area through the work of the Domestic Violence Coordinating Council, but more can and should be done. So many professionals come into contact with family violence victims, often unknowingly — doctors, nurses, dentists, teachers, attorneys, mental health professionals and clergy, to name just a few. The more we can do to reach out to and train allied professionals, the better the chance that we can intervene in the cycle of violence and stop it.

Curbing Driving Under the Influence

More than 40 percent of the fatalities in Delaware motor vehicle accidents in 2007 involved alcohol (51 alcohol- related fatalities out of 118 traffic deaths). 51 Lest anyone think that driving under the influence is not that big of a deal, the number of alcohol-related driving deaths nearly

doubled the number of people murdered in Delaware (37) in 2005. We can do much more to strengthen our drunk driving laws to reduce those numbers. For example, Delaware should:

Prohibit plea bargaining or reducing an alcohol- related offense to a non-alcohol related offense. At least 33 other states have enacted this sort of law.

Lower the Blood Alcohol Concentration levels for repeat offenders. Offenders who have had one or more prior DUI/DWI convictions should not be allowed to get behind the wheel if their BAC exceeds half the legal limit, or .04. Prior offenders who are caught driving with a BAC that exceeds .04 should be subject to a range of sanctions, including license revocation, vehicle sanctions, fines, and/or imprisonment.

Require mandatory BAC testing for drivers involved in fatal crashes. Delaware is one of only 14 states that does not require this testing.

Seize the vehicle of a driver convicted of three or more incidents of drunk driving.

Any or all of these measures could change alcoholics’ lives by enabling them to get help and save the lives of countless innocent victims of drunk-driving crashes.

A Delaware Office for Victims of Crime:

Protecting the Rights of Crime Victims

As governor, I will work to enhance the rights of crime victims. I will ensure that the Victims’ Bill of Rights is enforced and available to every victim in Delaware and provides real rights and remedies for victims. Most importantly, we should protect the rights of a crime victim to be notified of and present at all critical stages of the criminal justice process, the right to confer with prosecutors prior to the disposition of a case, the right to provide a victim impact statement at sentencing, the right to receive victim compensation and restitution, and an ability to enforce their rights if violated. I will increase awareness efforts to make sure that victims have the opportunity to seek the compensation they deserve from the Violent Crimes Compensation Board.

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Crime victims should also have an advocate in state government, a “one-stop shop” for victims’ rights and services. Although crime victim assistance programs are funded through the Delaware Criminal Justice Council, this agency provides few direct services to crime victims. Meanwhile, the state’s victim compensation program operates in an entirely different branch of government — the judiciary — while the Attorney General’s Office, a number of law enforcement agencies, courts, and correctional agencies operate victim-witness programs. Just as the federal government and numerous other states have done, I would seek to develop a Delaware Office for Victims of Crime. This centralized office not only would be responsible for the administration of state victim assistance and victim compensation funding and violence against women grant funds, it also would develop policies and programs to aid crime victims and support the work of victim advocates throughout the state.

Both of these measures — stronger victims’ rights and the creation of a crime victims’ office — combined with better efforts to reduce crime and victimization, will help Delaware have a criminal justice system that is fairer, more balanced, and able to improve services to crime victims.

Reducing Gun Violence

Any death due to gun violence is tragic, but it is even more horrific when children are involved. Anything we do to limit the access to weapons from the people we already know should not have them is a no-brainer. It makes our kids safer, it makes our schools and colleges safer, and it makes our streets safer. Delaware can do more to prevent gun violence, and as governor, I will make sure we do all we can to keep guns out of the hands of people prohibited from owning weapons.

Some of the things that my administration will do to combat gun violence are:

Improving Delaware’s reporting to the National Instant Criminal Background Check system. For almost 40 years, federal law has banned “mentally ill” individuals from owning firearms, but many states, including Delaware, have provided little or no information to the database. This is extremely troubling — and is something I would quickly

rectify as governor — because this is the database licensed gun dealers use when conducting background checks. Had Virginia properly reported its information, the deranged gunman at Virginia Tech would not have been able to legally purchase the two handguns he used in his massacre. As governor, I will make it a priority to turn Delaware into a national leader in reporting information to this system. It is important to note that increasing Delaware’s reporting will not harm law-abiding citizens who are eligible to own weapons. Improvement will only ensure weapons are kept out of dangerous hands.

Utilizing gunshot detection technology to help police quickly catch criminals. Technology, such as ShotStopper, uses sensors to send immediate signals to a city’s police department when shots are fired. The technology can detect shots fired up to two miles away and can pinpoint the gunman’s location to within a few feet. A growing number of jurisdictions, including Washington, D.C. and Prince George’s County, Md., have implemented this system and used it to quickly arrest individuals linked to shootings. I will help the City of Wilmington obtain funding for this important crime- fighting technology.

Increasing Access to Drug Treatment

In FY 2005, Delaware’s Division of Substance Abuse and Mental Health funded 8,480 admissions to treatment programs throughout the state, down from nearly 8,900 admissions to treatment in FY 2004. By far, the drugs for which treatment has been sought most are alcohol and heroin, with alcohol comprising up to one-third of treatment admissions while heroin made up slightly more than one-quarter of all treatment admissions.

Unfortunately, existing drug treatment services only reach a fraction of those who actually need help controlling their addictions. According to estimates from the 2003-2004 National Surveys on Drug Use and Health that were released last year, approximately 18,000 Delawareans (more than 2.6 percent of the entire state population) reported needing but not receiving treatment for illicit drug use during the previous year.

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It will be difficult to make significant headway against crime, family violence, driving under the influence, and a host of other social problems unless we can get more alcoholics and other addicts into programs that help them sober up and treat their addictions. But we are only making a false promise to addicts if we encourage them to get help but there are not sufficient residential or outpatient treatment slots and other resources available.

Delaware can take pride in being one of the first states in the country to enact a substance abuse parity law that requires health insurance coverage for the disease of alcoholism and other substance-abuse treatment equal with the coverage offered for other chronic health problems. Now the state can play an important role by funding an expansion of residential and outpatient alcohol and other drug treatment slots. This fiscal year our state is providing about $11 million in substance abuse funding through the Division of Substance Abuse and Mental Health. In order to begin meeting the rest of the state’s significant needs in this area, I would increase that budget by as much as 50 percent, or $5.5 million, over four years, so that existing or new treatment programs could create sufficient treatment slots.

At least 44 drug treatment programs operate in Delaware — 33 outpatient treatment programs and 11 residential programs. The state should do a rigorous analysis of these facilities’ services, waiting lists and requirements to identify steps that can be taken to improve drug treatment in Delaware. For example, despite Delaware’s significant heroin problems only six opium treatment programs are available in the state.

In addition, the state could use its existing workforce development system to build the substance abuse treatment workforce. Just as the state has begun to respond to anticipated shortages in various medical and social service professions by developing recruitment, retention, and training strategies, so too can the state help create programs, initiatives, education, and incentives that could educate, train, and grow Delaware’s substance abuse workforce.

Alternatives to Sentencing

In essence, prisons are roughly 20 times more costly per person, per day than regular probation.

Clearly, huge costs are associated with imprisoning offenders, and those costs are only going to increase as our prisons exceed capacity. But we certainly cannot simply release offenders just because our prisons are filled and hope that they suddenly turn away from crime and become productive model citizens.

The question is how to protect public safety and best use tax dollars to ensure the highest levels of safety and the best outcomes for offenders, 97 percent of whom eventually will be released and returned to our communities.

As with a need for smarter law enforcement, we need a smarter corrections system. We need to pursue workable alternatives to prison sentencing, in part to alleviate prison overcrowding and the need to build more prisons, but also in part to produce better outcomes for offenders we need to rehabilitate. Fortunately, Delaware has a good track record of alternative sentencing and the state should build upon this experience and these successes.

To begin with, the state should do a vigorous job of identifying drug-addicted offenders and channel appropriate offenders into treatment programs. More than three-quarters of those who are incarcerated in Delaware have some sort of underlying substance addiction. To the extent that Delaware can help intervene and disrupt this cycle of addiction among offenders, the better the chance that an offender can turn from criminal behavior and focus on more positive employment and activities. The spillover effect will be a better quality of life for the offender’s family and less demand on social services.

After a successful pilot program, Delaware established the first statewide drug courts program in 1997. Our drug courts operate on two tracks, not only dealing with offenders who violate terms of probation but also those arrested for certain drug offenses. Both have been effective in diverting offenders into residential and outpatient treatment programs, and data indicates much lower rates of recidivism among those who have

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successfully completed their treatment requirements. As governor, I will make three investments in this critical area:

• I will work to find resources to increase drug assessments at the time of arrest, not just after conviction and incarceration, because the sooner we can identify alcohol and other drug-addicted offenders and direct them to appropriate treatment programs, the better the chance that we can reduce the offender’s drug-related criminal behavior.

I will ensure that the Department of Correction’s three-part drug treatment program — the KEY program, a prison-based therapeutic community; the CREST program, which provides ongoing residential treatment and transitional services; and an after-care treatment and monitoring component that includes group counseling, drug testing, and other services — is available to rehabilitate more offenders. This approach has proven to be a cost-effective investment in reducing crime. A University of Delaware study of the DOC's drug treatment continuum found that of those completing the three programs, 76 percent remained drug-free and 71 percent remained arrest-free after 18 months. By comparison, among a control group that did not receive the continuum treatment services, only 19 percent remained drug-free and 30 percent were arrest-free after 18 months. Increasing the Department of Correction’s alcohol and drug treatment budget by 50 percent ($2.25 million) would pay for these expanded services. This would represent an increase of less than 1 percent of the department’s overall General Fund annual budget. But the potential payoff, as measured by reduced crime, recidivism, and incarceration costs, could provide significant payback to the taxpayers of Delaware. For every offender who does not re-enter the system, the State would save $24,000 per year in incarceration costs. As the statistics above show, this could result in thousands of inmates not going back to prison and savings of millions of dollars.

I will work with Delaware’s drug courts to assess whether additional resources could expand treatment services and other oversight and monitoring to a greater number of offenders. If more funding, increased staffing, or other state resources could enable these courts to divert more offenders into appropriate treatment and monitoring programs and produce better outcomes than simply sending them to prison, I will find the funds to expand these court services, up to an additional $1 million annually.

Reaching High-Risk Youth

Delaware funds literally hundreds of programs to help youth and provide youth services, but does not have an overall strategy that focuses the state’s policies, funding, and programs on successful outcomes. Delaware’s significant investment in our children and youth should make strategic sense and improve their opportunities. Consistent with best practices and research on the effectiveness of youth intervention, crime prevention and crime reduction programs, I want to create a system where the state’s education, children, youth, and families programs, workforce development, and law enforcement agencies will work together to develop a comprehensive youth funding strategy. This strategy should address the continuum of youth issues and needs, from school performance to after-school activities to skills development to recreation. In particular, we must be sure that the state relies upon the best research and funds programs with a proven track record of effectiveness.

Schools should be encouraged to teach anti-violence life skills, especially conflict resolution. While it is important that schools provide the kinds of education and training that will enable them to become productive, successful adults, it is also important that young people be equipped with skills and information that will help them navigate potentially explosive situations and people. Schools can be an outstanding and safe forum in which those sorts of skills can be discussed, practiced and learned.

I also want to ensure that state law enforcement agencies rigorously analyze juvenile arrest data. It is important to distinguish between juveniles who make bad, isolated decisions and get in trouble versus those who are on their

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way to becoming career criminals. More than 7,700 juveniles are arrested each year in our state, and every one of these incidents is an opportunity to intervene in the life of that young person. In many instances, with appropriate intervention and follow-up, we can ensure that the youth stays clear of trouble in the future.

But we also must ensure that those juveniles who are responsible for a disproportionate amount of crimes and violence are identified and punished. A number of studies have demonstrated that a small number of offenders commit a disproportionate amount of serious crime and violence. According to the Office of Juvenile Justice and Delinquency Prevention, chronic offenders make up less than 10 percent of the offender population but commit two-thirds of violent offenses. Other studies have echoed these findings, ranging from Orange County, California’s Probation Department, which found that 8 percent of repeat juvenile offenders committed more than half of the repeat offenses, to an analysis of juvenile homicides in Boston, which found that about a dozen offenders involved in those homicides accounted for more than 360 arraignments.

By analyzing juvenile arrest data and matching that information with other known risk factors, such as school behavior or performance problems, family problems, substance abuse issues, and delinquency problems (including running away from home, stealing, or gang involvement), the state can help identify those who are most likely to become seriously involved with crime and intervene.

Preparing ex-Offenders for a Productive Life

Given that 97 percent of offenders eventually will return to our communities, our state can and should do more to prepare these offenders for release and take steps to encourage their successful re-entry back into society. If we fail to do so, we will all pay for it in terms of crime, crowded prisons, and ruined lives.

Similar to drug courts, Delaware has used a case management approach in two pilot court programs to help ensure the successful re-entry of an offender from Delaware’s prisons into their communities, without gaps

in their treatment or supervision. These programs improve the tracking and supervision of offenders upon release, prepare communities to address public safety concerns, and provide services that will help offenders reconnect with their families and the community, including employment, counseling, education, physical health, mental health, and other essential services that support successful reintegration.

New Castle County’s re-entry pilot program targets repeat offenders who have been incarcerated at least one year

and have a community service obligation as a condition of their release. Sussex County’s program focuses on domestic violence offenders who are at risk for re- offending, and also have community service obligations as

a condition of their release.

Both court programs partner with the Department of Correction and the Treatment Access Services Center of the State Department of Health and Social Services, which supplies case managers to the court to support the program. Re-entry court officials work closely with social service advisory and planning bodies, including the state agency that receives federal criminal justice grant programs on behalf of the state, to ensure that the re- entry initiatives have access to an array of community- based services.

These re-entry programs should be expanded as part of a statewide re-entry initiative. Every offender should have a release plan that identifies individual problems, likely difficulties once released, and state, local, and community

agencies that can help that offender get back on his feet as

a productive and self-sufficient member of society. I want

state agencies working together and coordinating services and resources to ensure that this occurs, and would invest up to $1 million in additional funds annually to do so.

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In Sickness and in Health:

Health Care for All Delawareans

One of the great things about serving in public office is I get to meet the people who benefit from the work I do. And one of my very proudest stories is Curt Cole.

Curt is a 58-year-old employee of Delaware’s Department of Transportation. And about three years ago, he felt like he might be a bit overweight.

Right around that time, he read about the Health Rewards Initiative I helped create. This program provided 1,500 state employees with comprehensive physical assessments, as well as detailed statistics about how their health compared with their peers across the country and recommendations about how they could improve their health.

Part of the assessment was a stress test — and Curt failed it. He was referred to his cardiologist — and he failed another stress test.

Curt learned he had severe blockages in his arteries and was likely just days away from a devastating heart attack. Instead, he had bypass surgery — and today, he is enjoying life with his family. I’m proud to have Curt as a poster child for my work in health care.

Delaware families should not have to wonder whether they can afford to visit the doctor if their kids become sick or injured. Our businesses should not have to worry about losing their company health plan because one employee becomes seriously ill. And Delaware’s taxpayers should be assured that the money they spend on health care is buying the best possible value.

Unfortunately, Delaware still has a long way to go before achieving this ideal. Too many Delaware families and businesses are caught in a vicious cycle of rising health care costs and loss of coverage. The spiraling costs of health care threaten the profitability of companies, which have responded by shifting more and more health care costs to their employees. And the rise in health care costs has caused health insurance carriers to raise premiums, which has priced some

employers and consumers out of the market, adding to the ranks of the uninsured. As fewer employees receive health care coverage through their employers, and as fewer consumers can afford paying for health coverage on their own, the number of those without health coverage rises. And as the number of uninsured people increases, the health care system that treats the uninsured absorbs higher levels of uncompensated costs, which ultimately are paid by taxpayers or through increased costs and premiums paid by those who still have health coverage.

Without action, the vicious cycle of rising costs and less affordable coverage will continue to threaten the competitiveness of Delaware businesses and the financial stability of our families. And most importantly, it will keep thousands of Delawareans from enjoying the benefits of good health — which is too important to wait on. It is time to act now.

The Need for Affordable, Quality Coverage for All Delawareans

Why does Delaware need a bold plan of action when it comes to health care? It comes down to this:

1. Health care costs are threatening to overwhelm families, businesses and state government.

2. Affordable, quality health care is beyond the reach of many Delawareans, with over 100,000 having no coverage at all and many more worried that a job change or sudden illness could mean losing coverage or being faced with catastrophic medical bills. These are hard-working people. Over 80 percent of uninsured Delawareans are in working families. 52 People who work hard and do their fair share should not be left wondering whether they’ll be able to pay their bills if an illness or accident strikes.

3. We are spending too much at the back end and not enough on front-end coverage and preventive care. Delaware should invest the $91 million currently spent in our state on uncompensated care into a system of affordable, quality health care for everybody in Delaware.

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The Rising Cost of Health Care

Hard-working Delawareans need look no further than their own pocketbooks to know that health care costs are rising. Personal health care spending increased 9.8 percent a year in Delaware between 1980 and 2004 — faster than the national rate of 8.6 percent a year. 53 Personal health care spending accounted for 9.7 percent of our annual gross state product in 2004, up from 6.8 percent in 1980. And nationally, we spend $2 trillion on health care, or roughly $6,700 per person. 54

Although no longer increasing at double-digit annual rates as they did in the late 1990s and early this decade, health insurance premiums still increased by 6.6 percent nationally in 2005. Some employers — who are also feeling the burden of increasingly high health care costs — have tried to contain their health care costs by shifting some of those costs to workers. This trend has contributed to a rise in consumer out-of- pocket health care spending of 5.8 percent in 2005. 55 More consumers are paying higher deductibles and higher insurance co-payments and are receiving less comprehensive coverage of treatments and drugs.

The Lack of Secure, Affordable Health Care Coverage

As in most states, thousands of Delawareans lack secure, affordable, high-quality health coverage. According to the Delaware Health Care Commission, an estimated 105,000 Delawareans have no health care coverage. 56 And although our percentage of uninsured is a little lower than the national average, it is growing rapidly. Between 2005 and 2006, Delaware’s uninsured population grew by over 10 percent, from 95,000 to 105,000 people. 57 And between 2000 and 2005, Delaware experienced the fourth-highest increase of uninsured residents in the country. 58

It’s easy to get bogged down in dollar figures and statistics when one discusses health care and its impact on Delaware’s families. The numbers are important. But we must also remember that those without health coverage live in uncertainty and fear, knowing that a minor, treatable illness could become a major problem. For them, an accident or a serious disease not only

threatens their physical health, but their financial health as well.

This problem does not just affect people who are unemployed. Almost three-quarters (74%) of Delaware’s uninsured belong to families with at least one full-time worker. 59 Many uninsured Delawareans are not offered benefits through their jobs or cannot afford employer- sponsored or individual health coverage. This is despite the fact that Delaware’s businesses are slightly more likely to offer health coverage than the national average (61% vs. 56%). 60

We’re Not Getting What We Pay For

You might think that with all these trillions of dollars going to pay for health care, compensated or uncompensated, at least Delaware and the rest of America would have a healthier population. Unfortunately, higher health care spending does not inevitably lead to healthier people. The U.S. spends more money on health care both per person ($6,711) and as a percentage of GDP (16 percent) than all other countries, 61 but Americans score worse than other industrialized nations on important health outcomes like infant mortality and life expectancy. 62

Why are we paying more for our health care but getting less in return? Part of the reason for this is that we pay for health care very inefficiently. When we pay for uncompensated care for the uninsured in hospitals or emergency rooms, it is the equivalent of paying for a new engine instead of an oil change.

Uninsured Delawareans are less likely to seek necessary medical care when they need it, leading to the development of more severe and expensive illnesses, overuse of emergency rooms, decreased productivity, and even premature death. Even those with coverage may delay treatment of minor issues in the hopes of avoiding costlier doctor visits and crowded health facilities. And there are other spillover effects. For example, emergency rooms that are overcrowded due to increasing numbers of uninsured patients may mean that ambulances get turned away and have to spend precious minutes traveling to a different hospital. Also, untreated infections may put everybody at risk, whether or not they have coverage. In addition, the hospital emergency department is the most

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expensive and least efficient way to deliver care — especially if access to primary care could have prevented the illness in the first place.

The lack of affordable, quality health coverage for all Delawareans has a profound impact on those with coverage and on the state’s economy as a whole. 63 Hospitals and other health care providers treat some patients even if they lack health coverage. In Delaware, the cost of health care for the uninsured that was not paid for out-of-pocket by the uninsured themselves amounted to over $91 million in 2005. 64 Some of these costs are paid for by the state and federal governments (that is, by taxpayers), but much of this “uncompensated care” is absorbed by providers such as hospitals and these costs are shifted to privately-insured individuals in the form of higher bills — which ultimately translates to higher premiums. In addition to the tax dollars going to cover uncompensated health care, the private coverage “cost shift” added an estimated $724 to Delaware family health insurance policies in 2005. 65 By 2010, this “hidden” expense of caring for the uninsured will cost every Delaware family an additional $1,083 in insurance costs every year. 66 Insuring Delawareans up-front could save Delaware families hundreds of dollars a year, while keeping more people out of the hospital.

Having all Delawareans covered is also in our state’s economic interest. Nationally the lack of health insurance costs our economy up to $130 billion per year due to lost productivity. 67 Delawareans may be afraid to move to a job that suits them better — and where they would be more productive — if it does not offer health insurance. Because it is so much harder to obtain insurance in the individual market than through an employer, the lack of secure, affordable, and portable coverage can stifle entrepreneurship. Finally, those Delaware employers who do offer coverage are forced to compete with those that do not. On average, Delaware businesses with fewer than 50 employees pay for 87 percent of their employees’ health care costs. 68 Delaware deserves a conversation about whether it is time to level the competitive playing field among businesses.

Finally, we are not paying enough attention to chronic disease prevention and management — and we should,

because preventable chronic diseases like diabetes, heart disease and asthma account for over 75 percent of national health care spending. Quality, affordable health care coverage — along with strong public health measures to promote healthy lifestyles — will help us move toward a more affordable health care system.

A Bold Vision for Delaware

Delaware certainly is not alone in grappling with these concerns. Every state has been challenged by these issues of rising health care costs and insufficient coverage, just as many businesses have. Clearly, the status quo is unacceptable, but what alternatives do we have?

As it turns out, there are some options. None will be easy, but other states have taken bold steps to address their health coverage problems head-on. With the number of uninsured Delawareans rising and health care costs imposing an ever-increasing burden on our residents and businesses, Delaware is long overdue for some bold and innovative leadership.

Access to Health Care for All:

Guiding Principles

In order to control costs and increase coverage, health care reform in Delaware ought to meet five basic principles:

I. Everyone ultimately should have access to affordable, quality coverage in Delaware. It is the right thing to do, and it is a long-term investment in our people, our businesses, and our future.

II. No one should lose current coverage due to any reform efforts. But everyone should be able to obtain decent health care coverage at a price she or he can afford in partnership with employers and state government.

III. We must ensure that all children have coverage.

IV. To make health coverage more affordable to employers, consumers, and the government, health care coverage must emphasize proven preventive care.

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V. To keep health care costs sustainable in the long run, all Delawareans should take individual responsibility for their own health, and the state should work to help people make healthier choices. Everybody can take simple steps to achieve a healthier lifestyle, like turning off the television and going for a walk.

The good news is that Delaware does not have to start from scratch in reforming its health care system. We can learn from other states that have made significant progress in health care reform. While these reforms may not be perfect, the question we must ask ourselves is whether we will continue to accept the status quo or whether we will work toward a better health care system for Delaware.

A Partnership to Cover All Delawareans

Here is how I would propose to reform Delaware’s health care system as governor. None of these steps will be easy, but simply tinkering around the edges, or worse — doing nothing — are not responsible or effective options either.

First, we will focus on enrolling Delawareans who are already eligible for health coverage programs. An estimated 24 percent of uninsured Delawareans — more than 25,000 people — already are eligible for coverage through Medicaid or the Delaware Healthy Children Program. 69 For example, almost 13,400 uninsured Delaware children are eligible for Medicaid or the Delaware Healthy Children Program. 70

My friend Mark Warner was able to make Virginia a national leader in insuring eligible children in low-income households by aggressively reaching out to uninsured families, making it easier to sign up. We can do the same thing here in Delaware. To ensure that these individuals are enrolled and receive health coverage, Delaware will improve its Medicaid and Delaware Healthy Children Program outreach by:

Providing premium assistance to help low- income workers who are eligible for public programs to enroll in coverage offered by their employers. Compared to enrolling these

individuals directly in Medicaid, this approach can save the state money. For example, Rhode Island’s premium assistance program, RIte Share, has saved an estimated $4.7 million since the program began, or $1 million in savings for every 1,000 people enrolled in the program. 71

Allowing Delaware hospitals to directly enroll eligible newborns and their siblings in Medicaid or the Delaware Healthy Children Program. Nearly half of all births in Delaware are financed by Medicaid (approximately 5,000 births a year), and this requirement could help ensure coverage of thousands more children a year. 72

Allowing schools and preschools obtaining state funding to screen children for Medicaid or Delaware Healthy Children Program eligibility and enroll them if applicable.

Reducing the red tape that needy families must contend with to apply for Medicaid or the Delaware Healthy Children Program. For example, by allowing presumptive eligibility, which would cover medical care for kids when they need it, not months later when their application is complete. 73

Implementing “Express Lane Eligibility,” which would facilitate health insurance enrollment for children who are already eligible for other types of public programs, such as food stamps or the free and reduced school lunch program. 74

The estimated state cost of covering adults in this manner would be up to $20 million a year, while the state costs of enrolling uninsured but eligible children would be up to $13 million.

Second, we will provide all Delaware families with the opportunity to purchase affordable coverage for their children. I will make the state’s health insurance program for children in low-income families — the Delaware Healthy Children Program — available to all children with sliding scale premiums based on family income. Currently, families of four with incomes under roughly $40,000 are eligible for Delaware Healthy Children Program health coverage. This proposed change would provide the opportunity for coverage

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for nearly 9,300 additional uninsured children in Delaware. 75 The estimated state cost to cover these additional children would be up to $8 million annually.

Third, I will establish a Diamond State Health Marketplace for comprehensive, affordable, and portable health insurance. This Marketplace will serve as a private health insurance one-stop shop and will be available to all small businesses, sole proprietors, uninsured individuals and families. All Delawareans who like their current health coverage will have the option to keep it, but for those who are not satisfied, or those with no coverage at all, the Marketplace will be a source to purchase affordable coverage. Since the Marketplace will serve as a one-stop shop for health plans, it will also reduce administrative hassles for small businesses, sole proprietors, and individuals searching for health coverage. Furthermore, the Marketplace would provide an option for purchasing coverage on a pre-tax basis for workers in the nearly 40% of businesses that currently do not offer coverage to their workers.

The framework for the Marketplace will include the following elements:

Choice of Plans:

The Diamond State Marketplace would put choices of coverage back in the hands of individuals, instead of employers choosing a single health care plan for their workers. Delawareans purchasing coverage through the Diamond State Marketplace would be able to choose from a range of plans, from basic to comprehensive. Standards for health care plans

offered through the Marketplace would be set by

a Delaware Diamond Board. There would be a

benchmark comprehensive plan that would cover primary, preventive, acute, and hospital care, with an emphasis on preventive care and disease management. Health care plans would vary in the

level of benefits offered and out-of-pocket costs. The out-of-pocket costs for the benchmark plan would be capped to ensure affordability and designed to encourage smart preventive health practices and treatment. The Delaware Diamond Board, in addition to setting standards for the plans offered through the Marketplace, will obtain

bids from private insurance companies for a variety of other health coverage options to be included in the Diamond State Marketplace.

Pre-tax savings for employers and employees:

Currently, employed individuals who have employer-based coverage are able to purchase that coverage on a pre-tax basis. However, those Delawareans who work for the nearly 40% of Delaware businesses that do not provide coverage are left to either be uninsured or buy coverage on their own, through the individual market, with after- tax dollars. My plan would require all businesses to set up Section 125 Cafeteria plans for their employees, whether or not they contribute to premiums, so that these individuals can purchase coverage on a pre-tax basis. Massachusetts has used this tool to help level the playing field between people who currently have employer-sponsored coverage and those who do not. On average, obtaining coverage on a pre-tax basis through a Section 125 Cafeteria plan can result in tax savings that equal up to 40 percent off the cost of purchasing health coverage on an after-tax basis. 76

Simplified Payment of Premiums:

Premium payments to the Marketplace will be a shared responsibility between businesses, employees and the state. Employers purchasing insurance for their employees would only have to send their premium payments to a single entity, the Diamond State Marketplace, which would distribute premium dollars among plans chosen by employees. Workers with multiple jobs would be able to pool contributions from each employer, and would be responsible for covering a minimum percentage of the benchmark plan premium amount, or a higher percentage if they chose a more expensive private plan. The state would subsidize premiums for low-income uninsured individuals on a sliding-scale basis. The estimated cost of subsidizing these premiums would be up to $60 million annually.

Additional affordability measures:

Competition between plans, negotiation by the state

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and subsidies for low-income individuals and families would help to ensure affordability of coverage in the Diamond State Marketplace. For example, Massachusetts has already been able to use the negotiating power of the Commonwealth to obtain more affordable premiums for plans offered through its connector. 77 The Diamond State Marketplace would provide Delaware with this same negotiating power.

Fourth, employers should contribute to the cost of coverage for their workers, or pay the public for the coverage we must pick up for them. Currently, only 61 percent of private sector firms in Delaware offer health insurance to their employees. 78 But everyone in Delaware ought to pay their fair share. Businesses that provide health insurance are at a competitive disadvantage with those that do not help cover their employees — and the rest of us pay for this through taxes for uncompensated care and higher premiums. In fact on average, Delaware businesses with fewer than 50 employees already pay for 87% of their workers’ premiums. 79

To level the playing field, employers with 10 or more employees will be required to pay a fair share fee for each full-time-equivalent employee who is not covered through the employer or through another insurer. These business health care assessments will be collected and used to support health coverage offered through the Diamond State Health Marketplace. I would seek to phase in the imposition of this fair share fee by requiring it of large employers first — those with 100 full-time equivalent employees or more — before imposing it on smaller businesses.

Fifth, Delawareans who can afford coverage will be required to obtain a minimum level of health insurance. As with other states, a key problem with Delaware’s health care system is that those with insurance end up paying the cost of services for the 105,000 who are uninsured, so it is essential that those who can afford to do so pay their fair share as well. Individuals who can afford insurance but do not purchase it in effect are taxing everybody who is insured. It will be difficult for Delaware to begin to drive down costs until more Delawareans have a minimum level of coverage.

Finally, to ensure access to and continuity of health care coverage, I will require insurers to guarantee coverage for individuals. Delawareans should not ever fear being unable to get health coverage or to hold on to coverage that they have. Unfortunately, health insurers in Delaware are allowed to deny coverage to individuals if they have been or are currently sick — just when they need coverage the most.

To protect the ability of Delawareans to obtain health insurance, I will propose legislation that prohibits insurers from denying coverage to individuals based on health status. That legislation also will place limits on the amount premiums can vary based on health condition and age. About 20 other states have guaranteed issue for individuals in some form and Delawareans deserve the same protections as residents of other states. With an individual requirement to purchase coverage, insurance companies will be protected from having only the sickest individuals purchase coverage — so these two reforms must be instituted together.

Some will object to requirements that employers contribute to coverage and individuals purchase coverage. But here is the way I see it: research shows that without these requirements, states can at best hope to cover 20 percent of the uninsured — even with generous subsidies to individuals. 80 Of course, that would be a good start — but it would not be the kind of bold reform that will truly bring all Delawareans the security of health coverage.

Through the reforms I have just described, we can provide all Delawareans with the opportunity to purchase more affordable health insurance coverage. Here is how all of these elements would work together to cover Delaware’s uninsured, along with their estimated costs:

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estimated costs: 5 2 B LUEPRINT FOR A BETTER DELAWARE 2008 Remember, the cost of care

Remember, the cost of care for the uninsured in Delaware came to $91.2 million in 2005 and is predicted to reach an estimated $127.6 million by 2010. 81 Taxpayers largely bear the cost of this care in one form or another, but all too often this money is spent to treat expensive illnesses that could have been prevented by better access to health care in the first place. But by investing about the same amount — up to $111 million — we can provide health insurance coverage to virtually every Delawarean and in the process, improve the delivery of health care throughout our state.

That is the choice we face. We can continue with the status quo, which leaves more than 105,000 Delawareans without health insurance, costs us $91 million to pay for health care for those uninsured people, and only serves to drive up health care costs for those lucky enough to have

it. Or we can work together to change our health care system for the better by spending this money more wisely to extend health insurance to all Delawareans, helping everybody to stay healthy, improving our productivity as a state, making Delaware more attractive for investment, and lowering health care costs for those who are already insured.

How to Pay for These Reforms

This effort to reform Delaware’s health care system recognizes that all Delawareans — individuals, families, employers and the state government — have a responsibility to enroll in and pay for health care, and all of us will.

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The federal government, not state taxpayers, is financing a large portion of reforms in states like Massachusetts and Vermont. Delaware should seek comparable funding from the federal government. For example, the federal government will match 50 percent of all Medicaid expenditures paid by the state of Delaware. As governor, I will direct state health agencies to seek funding from the federal government to support these reforms, as other states are doing to support theirs. And individuals and businesses will be paying into this health care system as well, through sliding scale fees and assessments.

I also will ensure that state government does its part. Savings that are realized through reductions in uncompensated hospital and health care system costs will be dedicated to support these health care reforms. We can examine the potential for increasing taxes on activities that contribute to poor health, such as tobacco use. Even with the recent tax increase, Delaware still will have a lower tobacco tax than some nearby states, such as New Jersey ($2.58 per pack) and Pennsylvania ($1.35 per pack). 82 We still rank 21st among states in our tobacco tax. 83 An additional 50-cent increase in the tobacco tax would raise nearly $38 million in additional revenue, result in over $85 million in long-term health care savings, and save 1,200 Delaware kids from an early smoking-related death. 84

Other Health Care Reform Initiatives to Improve Patient Care, Health Care Quality, and Reduce System Costs

In addition to championing a steady transition of our health care market toward greater access and affordability, as governor I also would push for the following types of initiatives to improve the state of health care in Delaware and to reduce overall health care costs.

Focusing on Health Care Education and Prevention

Remarkably, less than 5% of our national health care budget is spent on prevention efforts. 85 Preventable injuries and diseases are not only a health care problem, but an economic problem as well. As governor, I will intensify efforts to encourage healthy behaviors through high-impact education, awareness, and outreach

campaigns. We should strive to make Delaware one of the nation’s healthiest states, and the only way to do this is to emphasize and encourage healthy living. Some examples of areas of emphasis will include:

Curbing Obesity. Obesity has reached epidemic levels nationally and in our state, impacting the lives of adults and children everywhere. We must work across all settings — work, schools, and community — to help Delawareans maintain a healthy weight. As governor, I will be committed to building on and strengthening efforts to curb both childhood and adult obesity in Delaware, for example by using school facilities to provide safe indoor and outdoor space for physical activity during and after school and encouraging schools to serve healthier meals in schools.

• Promoting Healthy Living through Businesses. Given the amount of time we all spend at work, it is an obvious place to promote healthy living. Businesses across the country are beginning to recognize the potential rewards of investing in their workers’ health. For example, each dollar invested in worksite health promotion programs can save an average of $3.48 in reduced health care costs and $5.82 in reduced absenteeism costs. 86 (As state treasurer and a member of the State Employee Benefits Committee, I certainly know this to be true. A few years ago, I championed a program called “Health Rewards,” which offered Delaware state government employees comprehensive physical assessments, detailed statistics about how their health compares with their peers across the country and recommendations about how they can improve their health. This pilot program improved employee health and reduced the cost of their health care and received an Innovation Reward from the Council of State Governments in 2004. As governor, I will continue to support efforts to improve worksite wellness.)

Promoting Widespread Health Information Technology

Anybody who has ever had to take an extra medical test because their last lab results were not on record, or who

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has been to the emergency room, or even just switched doctors, can imagine how much more efficient health care would be if medical records could be quickly and securely transmitted between health care providers. Indeed, electronic medical records and other health information technology, such as electronic reminders about when to get a test, can improve the quality of care, reduce health care costs, and even save lives. The Delaware Health Information Network is a public-private partnership that aims to “save lives, reduce medical errors and manage health care costs to bring Delaware's health care system into the twenty-first century.” 87 As governor, I will make the implementation of health information technology a priority, to improve health care quality now and for future generations of Delawareans.

Containing Pharmaceutical Costs

In 2004, Delaware spent $676 million on prescription drugs. 88 While prescription drugs are an essential part of modern health care, too many patients are struggling to pay for prescription drugs and pharmaceutical spending is eating up a larger and larger share of state and national health care budgets. States have used the following tools to reduce spending on prescription drugs and Delaware can continue to learn from these examples and undertake similar efforts:

• Continuing to use the purchasing power of the state to negotiate lower drug prices. Pharmaceutical costs can be reduced by using the purchasing power of multiple agencies to lower drug costs, for example by combining the purchases of state employee health plans, Medicaid, and corrections departments. In addition, public-private partnerships should be explored such as pooling drug purchases with large employers and insurance companies.

Further exploring opportunities to better

manage prescriptions. States can save millions of dollars by using technology to manage the use of prescriptions in state health programs. For example, Florida’s Medicaid program provides doctors with handheld devices that provide them with the real-time medication history of their patients. This tool has

enabled physicians to make more informed prescribing decisions, resulting in fewer drug interactions, fewer prescriptions written and a net two-year savings of $50 million. By ensuring that Delaware’s health care providers have the tools they need to better manage their patients’ prescriptions, our state can improve the quality of care, reduce prescription drug costs and even help avert serious problems like prescription drug abuse.

E-prescribing. Electronic prescribing has the promise to hold down drug costs by as much as $20 to $44 billion each year nationally by reducing prescribing errors and helping prevent duplicate prescriptions. In addition, e-prescribing could help avert up to two million incidents of patient harm from medication errors that occur each year in the United States. 89 As governor, I will support efforts by Delaware’s physician community to implement e-prescribing, and will set a goal that all physicians will be using e- prescribing by 2010.

Enacting Common-Sense Medical Malpractice Reform

Medical malpractice lawsuits often arise out of a culture of fear and mistrust — and often end without addressing what should be a top priority — patient safety and quality of care. But new, creative solutions for health care reform — solutions that began at the Veteran’s Administration and are being implemented by hospitals around the country — are reducing the need for medical malpractice lawsuits and showing real savings in litigation costs. 90 At one hospital in Minneapolis, medical malpractice lawsuits decreased by 50 percent after this program was implemented. As governor, I would support the implementation of these solutions — known broadly as medical error disclosure programs — in Delaware.

These and other reform initiatives will contribute to our overall goals of improving health care coverage, reducing costs, eliminating health care disparities and improving quality. In particular, efforts to control health care costs will be key to our success. The primary reason so many employers, families, and individuals struggle with health

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care is cost. Unless we do a better job of containing health care costs by emphasizing preventive care, eliminating fraud, and reducing the costs of prescription drugs, all we will wind up doing through efforts to insure more Delawareans is shift the responsibility for high health care costs from one entity, usually businesses or individuals, to another, most likely state government. Through these and other reform efforts to reduce health care costs while improving the quality of health care, we can, and we will, do better than that.

None of these reforms will be easy to accomplish. But the costs of not trying to change the way our health care system operates will far exceed the costs of bold and innovative leadership. Shouldn’t we strive to do it right?

Golden Years Guarantee

Delaware is home to more than 114,000 adults aged 65 and older. 91 Older Delawareans are a vibrant part of Delaware society, contributing to our economy, learning new skills and hobbies, and enriching our communities with countless hours of volunteer work, such as mentoring young Delawareans. But as we age, we all grow increasingly vulnerable to pressures such as the rising costs of health care, the financial impact of retirement, and the fear of becoming ill or losing our ability to live independently. Indeed, a shocking 11% of Delaware’s seniors — more than 12,000 people — are currently living in poverty. 92

As treasurer, I have taken on initiatives to help Delaware’s seniors improve their financial security. For example, my office created a Consumer Tool Chest of financial security tools for seniors, which the AARP endorsed. The tool chest includes how to create a retirement plan and live off a fixed monthly retirement income, spot hospital billing mistakes and avoid injuries at home. 93 We partnered with the U.S. Department of the Treasury to launch the “Go Direct!” campaign, which helps seniors avoid financial crimes by direct-depositing their Social Security payments. 94 And earlier this year, we launched a First State Saves program to help Delawareans save for retirement and other important needs. 95

One of my top priorities as governor will be ensuring that Delaware’s older residents can afford the health care they

need, live more securely in retirement, and live the healthy, active and independent lives they want to live.

My Helping Older Delawareans plan will focus on:

• Making Prescription Drugs More Affordable for Seniors

• Ensuring High-Quality, Safe Patient Care for Seniors

• Helping Senior Citizens Live Active Lives

Making Prescription Drugs More Affordable for Seniors

Prescription drugs are helping seniors maintain their good health and are becoming increasingly important for treating illnesses including chronic diseases. Unfortunately, the price of prescription drugs has continued to rise. And while the new Medicare drug benefit has helped many seniors afford their prescriptions, seniors can still be financially overwhelmed by prescription drug plan premiums, co-pays, and deductibles — not to mention the infamous “donut hole,” which in 2008 will mean that seniors with high drug expenses could end up spending more than $3,200 in the coverage gap. It is no wonder that many seniors are still concerned about how they will afford their prescription drugs.

Affordable prescription drugs are not just a matter of keeping family finances secure and maintaining good health. They may also play an important role in reducing health disparities. For example, a recent national survey found that more than 60% of African-Americans and Hispanics are concerned about their ability to pay for prescription medications over the next two years, and nearly 40% had a problem paying for prescribed drugs. 96 Unaffordable drugs mean that seniors may delay getting a prescription filled, skip a dose or take less medicine. 97

As governor, I will strengthen the Delaware Prescription Assistance Program (DPAP), a critical program that helps fill in the gaps in prescription drug coverage for thousands of low-income older Delawareans and individuals with disabilities. DPAP provides up to $3,000 per year in prescription benefits to eligible Delawareans. 98 During 2006, DPAP provided 139,271 prescriptions to Delawareans. 99 Currently, Delawareans are eligible for

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DPAP if they have incomes less than 200% of the Federal Poverty Level, or $1,702 per month. They may also qualify

if they have higher incomes and their prescription costs

exceed 40% of their income. 100

However, research indicates that many older Delawareans are having trouble affording their prescription drugs, but are not eligible for DPAP assistance under current guidelines. For example, a Delaware senior who makes $2,553 per month (300% of the Federal Poverty Level) would have to spend a full $1,021 on prescription drugs each month — or 40% of income — in order to qualify for assistance under DPAP. 101 This means that DPAP may not be reaching enough seniors who need help affording their

prescriptions. As governor, I will help make prescriptions

a more affordable part of seniors’ budgets by extending the Delaware Prescription Assistance Program to more seniors and persons with disabilities who are having trouble with their prescription drug costs.

Ensuring High-Quality, Safe Patient Care for Seniors

While Delaware is fortunate to have many dedicated, caring health care professionals, comparisons of Delaware’s performance to other states show that our

state still has some work to do when it comes to creating

a high-quality health care system, especially for seniors.

Hospital-acquired infections, medical errors, and other poor-quality health care costs our society in terms of lives lost or harmed, and millions of dollars wasted. Because seniors are more likely than other age groups to be admitted to hospitals and nursing homes, they are more likely to be affected by poor-quality care and are more likely to benefit from improvements in the quality of care.

For example, while Delaware’s health care system ranks 14th overall among states, we rank 31st when it comes to avoidable hospital use and costs. Delaware ranks near or below the middle of states on quality measures relevant to seniors, such as preventable hospital admissions for Medicare beneficiaries, percentage of nursing home residents with hospital readmission within 30 days, and percentage of high-risk nursing home residents with pressure sores. 102 Improving the quality of care would not only improve health outcomes and quality of life for

thousands of seniors — it would also save an estimated $23.3 million per year in reduced preventable hospitalizations, readmissions, and hospitalizations of nursing home residents. 103

Other states and studies have made health care quality improvements such as reducing hospital-acquired infections and medical errors a part of health reform initiatives. For example, Pennsylvania’s Health Care Cost Containment Council, one of the only organizations in the country to report on the number and cost of hospital- acquired infections, estimates that these infections cost an extra $2.9 billion in unnecessary hospitalizations and led to 2,500 deaths in 2005 alone. Although hospital acquired infections are not reported in Delaware, reducing these infections could yield substantial savings. For example, a collaborative effort between Johns Hopkins University and all of the intensive care units in Michigan to reduce certain types of infections saved an estimated 1,500 lives and $175 million during an 18-month span. 104

To improve the quality of health care for Delaware’s seniors, I will direct Delaware’s health-related agencies to study and pursue such strategies as:

Establishing quality and pay-for-performance initiatives in state-funded health programs that reward quality of care and improved health outcomes;

Creating a Delaware Center for Patient Safety, similar to the New Jersey Quality Institute and the Maryland Patient Safety Center. 105 This Center would serve as an essential resource to hospitals in the state by providing technical assistance and opportunities for collaboration among health care facilities to implement proven patient safety practices. For example, representatives from more than 50 Maryland hospitals that joined together in a Safety Culture Collaborative succeeded in reducing the rate of bloodstream infections in their hospitals by 36 percent in only eight months;

Supporting efforts by hospitals and nursing homes to report infections acquired in their facilities, providing feedback to health care providers on their performance and publishing reports to help

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patients make decisions on the best place to receive care; and

Continuing to implement electronic health records and e-prescribing.

Helping Senior Citizens Live Active Lives

Delaware’s seniors are one of our state’s most vibrant resources. Older Delawareans have a wealth of experience to offer — at work, in the community, and as family members and friends. As Delaware’s population ages, our state must focus on promoting good health and helping seniors stay engaged in work, volunteerism, and the activities they enjoy. It is time to model our state policies around a new view of aging — one that recognizes the vitality and experience of older adults and ensures they are fully connected to work and community. As governor, I will make sure that Delaware is doing everything possible as a state to help older workers stay in or re-enter the workforce through training, incentives to businesses, and other initiatives. I will also ensure that the younger and older generations are connected through additional mentorship and volunteer opportunities.

When it comes to seniors’ health and well-being, I also believe that we must help seniors maintain independent lives in their homes and communities as much as possible. Meeting this goal will require Delaware to bring together innovations in such areas as health, transportation, efficient government services, and economic development. As governor, I will support a coordinated, statewide effort to help seniors lead healthier lifestyles, manage chronic diseases, and make homes and communities more livable. As a first step, I will convene stakeholders from the public and private sectors across the state, identify best practices for promoting healthy aging, and coordinate action on those best practices in all sectors — through senior centers, faith-based organizations, businesses, and in the clinical setting.

As governor, I will also help seniors who want to make their homes more livable by establishing a statewide clearinghouse where seniors and persons with disabilities can find information on how to modify their homes for independent living, and I’ll provide incentives to

developers who incorporate universal design principles into new construction. Promoting livable homes and communities will help not only seniors, but also other citizens living with disabilities, including severely wounded veterans returning from Iraq and Afghanistan, who may need modifications to their housing. 106

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Delaware’s Education Future: World Class Public Schools

As a kid growing up in Newark, my life revolved pretty much around a three-mile radius from Newark High School. I figured that what I saw most days was basically what the world was all about.

But at the age of 17, I went on a trip with my parents, including a few days in India. And amidst the poverty and misery I experienced there, all of the things I was otherwise thinking about – the prom and calculus to name a couple – kind of melted away. I had a new sense of the world around me and I returned home in time for graduation and spoke about what I had seen.

At that time – 1978 – a strong public education was one of the biggest differentiators between our nations. That is just not so true anymore.

India learned the value of investments in education. And if I were to take Molly and Michael on that same trip that I took with my parents, they would find kids their own age in good schools doing advanced work. Surely they would not find it in every Indian town or village, but they would find it.

It is a new world. It gives us much to think about.

Leading the First State into the 21st Century

As a former executive in the technology industry, I have had a lot of occasion to think about the lessons I learned on that trip to India long ago, the very different world we live in today, and the importance of education as a way to succeed in that world. Obviously, from the technology perspective, improved science and math education must be a crucial element in the 21st century.

But I am also convinced that the need for a broader education is just as important.

The world has changed for us and for our children and in the future our children will increasingly have to ask themselves tough questions as they enter the job market.

As Daniel Pink asked in his book A Whole New Mind, “Can someone overseas do it cheaper? Can a computer do it faster? Does what I’m producing meet the needs of today’s consumers – who desire ever-more customized, meaningful and well-designed products and services?” 107 And, they will need to be equipped with a set of skills that will allow them to compete in this environment. What are these skills? What are the skills of the successful worker of the future?

Everybody has a theory about the skills that our children most need to be competitive. And while there is no consensus, I have developed at least a starting point for identifying these skills:

“STEM” (science, technology, engineering and math) skills

• Thinking skills

Workplace skills

• Citizenship skills

First of all, economic prosperity is strongly linked to innovation, especially in science and technology. Content knowledge in math, engineering, physics and computer science has fueled high-tech innovation in the past. Furthermore, in an information economy the majority of jobs – not just those designated high-tech – require some grounding in math and science. Unfortunately, by most measures, American students fare poorly in these areas when compared with their peers around the developed world. As time goes by, the number of experts concerned about U.S. students’ lack of knowledge in these areas continues to grow.

There exist many excellent methods in Delaware and across the country for improving math and science education. In fact, our state’s use of the Smithsonian curriculum is already paying dividends. But let us be very clear. Even if our students were as expert in math and science as students in other countries, that would not be good enough, simply because skilled employees in other countries will work for far less. That is why a focus on math and science skills alone is insufficient.

Second, the strength of our economy has long been rooted in our ability to innovate and be creative. While

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these skills certainly require a solid foundation in the substance of math and science, they also require more, which one can describe as “thinking skills.”

Innovating, creating, designing, initiating, and implementing require a wide range of skills, in addition to the science, technology, engineering, and math content students attain in school. At a minimum, students must learn how to synthesize, detect patterns and see relationships among seemingly unrelated items, combine ideas to create new ones and challenge assumptions. The point is this: knowing the facts and being purely logical will not be nearly enough for many people to be successful in this new world. Our students must also possess strong thinking skills and the power of creativity in order to yield positive results.

Even with improved STEM content and with high-level thinking skills, our children would still not be completely prepared to meet the challenges of today’s economy. According to the Secretary’s Commission on Achieving Necessary Skills (SCANS), students will also need to self- direct their own learning, initiate and persevere, communicate effectively, practice ethical behavior, work independently and in teams, and be able to work across cultural and national borders. Delaware parents and educators agree that these so-called “soft skills” are increasingly important. Parents’ frustration with standardized test scores and No Child Left Behind is a result of their strong desire to raise healthy, happy kids and life-long learners who can adapt to difficult situations – and not just good test-takers. That is why soft skills are so important.

Third, our children’s future success depends not just upon their academic proficiency but their ability to translate that mastery into the workplace. Many successful Delaware workers of the future will be recognized for technical mastery of academic subjects and for their ability to critically analyze problems — but they also will have an understanding of the world at large, and be proficient in foreign languages. They will be well- educated, empowered, and able to use what they know to work with others in innovating and creating new and better services and products. It is this type of worker who will prosper and who will enable Delaware to continue to thrive, despite the competition of new, educated workers

around the globe. And it is this type of citizen who will be prepared to participate in a functioning democracy.

Finally, we must always remember that our schools must prepare the next generation to be responsible citizens and adults. Our children do need the skills to compete in a global economy, but the manner in which they deploy that skill depends on their sense of civic responsibility and respect for others, which are the definition of citizenship.

Policymakers from all parts of the political spectrum recognize the importance of this goal. On Sept. 5, 2007, Chester Finn and Diane Ravitch wrote in Education Week, “Liberal learning is critical to young people because it prepares them for ‘public life’ — not just politics and government, but civic life in which we should all partake…For such engagements to succeed, one need not have a college degree, much less a Ph.D. But it’s close to essential to have a broad basic education…Once upon a time, most U.S. schools sought a balanced education for their students…One could fairly say they were being groomed for leadership or at least for responsible citizenship…Even those not so ‘groomed,’ however, still learned the great stories of democracy…And they were taught that they could, with learning and hard work, rise above their circumstances. So great are the numbers of those who transcended their origins and upbringing that the story has a name – the ‘American dream.’ The American dream has a strong basis in reality.”

This kind of approach is more important today than it has ever been, because the expectations of our young people are higher than ever. And that certainly includes the very practical issue of how we can ensure that the next generation has opportunities bigger than ours.

So how are we doing now? And why is this so important?

In the 21st century economy, greater prosperity for many means post-secondary education, be it community college, trade or technical school, four-year college or graduate level education. In 2004, adults with a bachelor’s degree earned on average more than $20,000 per year more than those with a high school diploma and $30,000 more per year than high school dropouts. 108 This contrasts with 1979, when a college degree meant only about $5,000 more per year. 109

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Public education in Delaware has improved considerably in the past decade — Delaware is the only state in the country that improved student reading and math scores more than the national average since 1992, for example— but we have more work to do to live up to our promise.

We have plenty of challenges in formulating a world-class educational system in Delaware that both produces future leaders of a civil society and can respond to the demands of the 21st century:

Our labor force is not as highly educated as it should be to respond to our state’s changing economic opportunities. The 2007 New Economy Index, for example, rates Delaware’s workforce education at about average — 20th in the nation. 110 Results from the national think-tank also show that Delaware scores just about at the national average on myriad benchmarks, from the number of young adults who receive college-level training to the success of our students on national academic proficiency tests. 111

According to Measuring Up, the national report card on higher education, Delaware has an “underperforming” workforce that is on a downward trend. Specifically the report cites our inability to graduate ninth-graders from high school on time (in four years), and our state performance in this area has “dropped by double digits since the early 1990s.” 112 Delaware outperforms the nation, and even top states, on certain academic indicators, but high scores among white and Asian students inflate these figures. Our overall performance is middling, which means that there is a significant achievement gap among students, with Latinos and African Americans faring poorly compared with other groups.

Per pupil spending in Delaware is the eighth- highest in the nation 113 but our outcomes must continue to improve. Delaware spends almost as much on K-12 education as states like New Jersey and Massachusetts. 114 But these states have much higher student achievement and are getting better returns on their educational investments.

New Jersey ranks fourth and Massachusetts fifth on the 2007 Quality Counts “Chance for Success Index” while Delaware ranks 18th.

The 2006 Education Report Card gives Massachusetts an “A” and New Jersey an “A-,” but gives Delaware a “C” overall. 115

Delaware ranks 27th among the states in the percentage of eighth-grade students meeting national standards in reading and mathematics. 116

At the same time, Delaware students improved their scores on National Assessment of Educational Progress tests in fourth-grade math at a better rate than students from other states between 1996 and 2007. 117

Similarly, Delaware students made the fifth-highest gain in the nation in Advanced Placement Scores according to a recent report. 118

How will a struggling education system, built in and for a different era, rise to meet the extraordinary challenge of educating all of Delaware’s students to compete in a global job market, to become productive citizens, and to learn to be lifelong learners?

An Education Policy for the 21st Century

For nine years now I have traveled up and down the state of Delaware, talking with parents, students, teachers and others who work in our schools to get a sense of their priorities.

Unfortunately, Delawareans are not often asked what they want from their schools. Too often, they feel like they have little say. But when asked, they are quite clear.

First they want every child to arrive at school ready to learn — and that starts with parental involvement: parents are their children’s first teachers. We need to ensure that as many parents as possible have the ability — and the opportunity — to fulfill that role and participate positively in their child’s educational progress starting from the earliest years and continuing throughout their schooling. Not every parent and child has this opportunity, especially those living in poverty. But if our state and our nation are

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truly to compete in the 21st century, and be a rich, productive and empowered populace, all children, regardless of their family’s station in life, must come to school ready to learn. This means that we must invest in early childhood education to ensure that each and every child receives adequate attention and mental stimulation during the years of greatest brain development, the years prior to entering grade school. (We also must ensure that our children’s schools are safe places for teachers to teach and for students to learn. This issue is so important in its own right that I will be releasing a separate plan specifically addressing my intention that every student in Delaware attend a safe school with proper discipline.)

Second, parents want schools that challenge and interest their children and prepare them to compete in a rapidly changing world economy. That includes not just the broad education I discussed earlier — the STEM skills, thinking skills, workplace skills, and citizenship skills necessary in the 21st century — but also the special programs that will help ensure that every child learns them. This starts with caring, qualified teachers, and staff for their children. To make sure that these teachers are as effective as possible, we must lower student-teacher ratios in the youngest grades — and we must augment the school-day program with after-school enrichment programs that are accessible for all kids. Even as we improve education across-the- board, some children will come to school with special needs and we must do a better job of meeting them with the best possible special education programs.

Third, they want schools with the resources they need to ensure their children have the tools and facilities they need to learn. But parents know that resources must come with accountability. They want an accountability system that they can understand and can make clear whether or not students are achieving at high levels. More importantly, the accountability system must enable both teachers and students to understand if the appropriate amount of learning is being achieved. Our accountability system must empower parents by giving them the choices necessary to make sure that their children are achieving their greatest potential.

Fourth, they want to ensure that their children are learning the full range of skills necessary to compete in the 21st century. Research has shown that kids learn better

when academic material is related to real-world experiences — and that preparation for their adult work experiences needs to start early. It is critical that curricula reflect career opportunities and workforce preparation at least by high school — for both college-bound young people and those who will go directly into the workforce. We need to build upon our already excellent vocational workforce preparation with cutting-edge career & technical programs for those seeking such education in high school. And we need to invest in our terrific community college so it can continue to connect grads to good jobs – and help them improve their skills to advance their careers.

Finally, parents want their children to be able to go as far as their abilities will take them. In the 21st century economy, the vast majority of workers will need at least some college-level education. Every child should be able to get that, regardless of family wealth. That is why we need Early College/Middle College programs, so kids can get a jump-start on the higher education they will need — and to make college more affordable. We need expanded scholarship opportunities, so that every child who can get into college can afford to go. And we need a state “higher education strategy” to make sure a world-class college education is available in Delaware.

In summary, Delaware must insist that every child arrives at his or her first day of kindergarten ready to learn and every teenager who graduates from high school and who has the desire and ability to succeed in college has the opportunity to do so.

We have made much progress in the past fifty years, but we have still got a long way to go. With the right leadership and by empowering parents, students, and teachers, we can get there.

Starting Out on the Right Foot

Increasing Parental Engagement.

Delawareans believe strongly that “increasing parental involvement” is one of the foremost solutions to our public education woes 119 — and they are right. But at the same time Delaware lags the nation in parental engagement, particularly in the formative middle school years. The findings of the Opportunity Knocks report

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issued by the Rodel Foundation on this topic are sobering:

“91 percent of school officials surveyed say that Delaware parents participate in elementary school parent-teacher conferences (90 percent nationally), but only 28 percent report that parents participate in middle school conferences (61 percent nationally).” 120

In fact, as I have met with teachers in most of the state’s districts, I have heard over and over again how changes in the culture negatively impact learning. What exactly do I mean?

Teachers tell me about conversations with students that go something like this:

Teacher: “I need to see some improvement in your performance or I’ll need to call your parents.”

Student: “Go ahead and try. See if you can get them on the phone.”

I also heard about conversations like this one:

Teacher calls parent by phone: “Your son, David, is having some issues at school that I’d like to talk to you about.”

Parent: “David is your issue between 8 a.m. and 3 p.m.”

There are a number of national initiatives to give parents the tools to be more effective participants in schooling, including and Project Appleseed. We have a state treasure here at home in the Delaware Parent Leadership Institute (DPLI), which has been recognized nationally for its approach, including by the Education Leadership Action Network (ELAN).

DPLI is one of the only statewide parental leadership programs in the nation — it trains parents to help improve their schools in a rigorous 60-hour training session that begins each fall. As governor, I will introduce legislation to provide state matching funds up to $1 million for the DPLI to strengthen its reach. I will follow the recommendations of Vision 2015 to use those funds to support:

Offering leadership and advocacy training to families and instituting school-based family liaisons to strengthen school-family ties; and

Strengthening online tools and outreach

programs to inform parents about their children's progress and their school's academic standards and to help families reinforce classroom learning at home.

We must make the necessary investments to ensure safe, productive schools, particularly at the middle and secondary school level and this can be done partially by fully engaging parents. We will have parent education classes up and down Delaware that teach parents tangible ways to act as stewards for their children’s education.

Eliminating the Achievement Gap and Addressing its Primary Culprit, Children’s Poverty.

The educational outcome for many children is preordained before they even set foot inside a classroom. Poverty has many attendant challenges, including inadequate health care and nutrition, especially in the early years when healthy brains undergo their most rapid development. Another result of poverty can be exposure to violence, which studies show can retard emotional and intellectual development even as it endangers their physical wellbeing. Such challenges cause too many children to arrive at school unprepared to learn. They also often lack other resources, such as parental time and attention or even a safe, quiet place to study. Children need to overcome these initial handicaps and make progress throughout their schooling.

This is a tragedy not just for the individual children but for all of us as well, regardless of where we live. These challenges and our failure to address and overcome them affect not just individual students’ ability to learn, but also the ability of the school to teach, and thus it affects all other students in that school and all taxpayers in our state. And ultimately it affects all of us as citizens, as participants in the global economy and as a society.

David Berliner describes poverty as the 600-pound gorilla in the classroom and writes, “We have to face it.” A decade ago, fewer of Delaware’s children lived in poverty than anywhere in the country. Today, we have fallen to 18th in child poverty, with our present rate at 14.2%, up sharply even from the prior year’s 13%. 121 African-Americans and Hispanics are much more likely than other Delawareans

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to be poor and to drop out of school. We have to do everything in our power to reduce childhood poverty and its terrible effects on the ability of our children to learn.

Delaware earned high marks in some indicators of the 2006 Quality Counts national public education report card, but it is criticized for low academic achievement among minority and low-income students. We can eradicate the achievement gap between racial groups by taking several important steps. First, we must expand access to high-quality early-childhood education, offering full-day kindergarten and lowering class sizes in elementary school. Offering additional learning time to those who need it the most, via after-school enrichment, is also very important. Finally, we must improve and expand those effective programs aimed at low-performing students. 122 I plan to employ all of these tactics in tackling this difficult problem.

But beyond the specific tactics of how we eliminate the achievement gap, I have a bigger sense of what we must do strategically to improve education for those students most in need. And this sense has been developed over many years visiting successful schools that serve high risk populations in and out of Delaware. Some are public and some are not. But they tend to have three major features in common.

First, they have very high expectations of their children. Middle school students know, for example, that they will have two hours of homework every night — 30 minutes in each of four academic subjects. The slogan in some of these schools says it all: “There are no shortcuts; there are no excuses.”

Second, these students often spend more time at school than other students. In some cases, students go home at 5 p.m. for dinner and return to school at 7 p.m. for two hours of homework. Along these lines, I believe we should take a very serious look at building an urban boarding school in Wilmington. The fact is, far too many urban kids drop out of school before graduating, setting them on a path to dysfunction and failure. An urban boarding school would be expensive but it may well be worth the investment.

Third, the students learn that there is something special about their schools. I sometimes ask students, “What’s

different about your school?” And in every school they give me some variation on the same answer: “This place is more than a school. It’s more like a family. If something is bothering me, a teacher will stop me as I walk down the hallway, because they can see it in my eyes.”

When students feel cared about by people who believe in them and expect much of them and who can effectively teach them, there is no limit to what they can accomplish.

Ultimately, of course, we will only eliminate the discrepancies and obstacles that poverty creates for too many children and young people by eliminating poverty itself. That is a daunting challenge — but one to which I have applied myself as treasurer and on which I believe we can make demonstrable progress if we apply concerted effort. I want to build on the steps I have taken over the last decade as treasurer to make our state one of the first to comprehensively address — and defeat — the problems of poverty. I have a plan for doing so and will be releasing that soon as part of my gubernatorial campaign.

Early Childhood Education:

All Delaware children should have an equal chance for success in life. Right now they do not. We need to concentrate more of our public education investments in the formative years so that our children receive the head start on learning that stimulates natural confidence, curiosity, and communications skills that they will carry with them throughout their lifetimes. We must provide our children the same opportunities for prosperity and security as their peers here at home, in other states, and around the world.

A child’s education begins right away. There is no waiting for kindergarten. If we wait to begin quality education until a child enters kindergarten, we will have lost precious time. Business leaders, who are extremely interested in having the highest quality education system in Delaware, strongly support enhancing preschool programs in Delaware because of the long-term benefits children derive from a strong education at an early age.

Delaware must have a strong pre-school system that helps ensure that our kids enter kindergarten ready to learn.

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As governor, I will strengthen efforts to link private pre- school programs with the local districts, so that curriculum for 3- and 4-year-olds is tied to what they will be taught in kindergarten as 5-year-olds. I will also establish a statewide preschool program that puts services already available under one roof. Right now, three state agencies deal with pre-school programs. I will consolidate those efforts and make them more efficient. This consolidated system will be of great benefit to families and children from birth to kindergarten.

No improvement to the quality of pre-school programs will do any good if the children do not attend. Our pre- school educational programs must be available for far more students than those at the federal poverty level. I am endorsing, and will push as governor to enact, the recommendation of Vision 2015 to expand pre- kindergarten for all 3- and 4-year-olds whose families are within 200% of poverty. This represents a commitment to our kids of up to $20 million annually.

Many other states are doing this, and it is easy to know why — it works. Since 2005, state funding for pre- kindergarten education has exploded, as more governors recognize that it is one of their most important tools for building a better workforce and a stronger economy. As of 2005, at least 39 states offered state-funded pre- kindergarten. 123 Sixty percent of all 3- and 4-year olds are enrolled in pre-school, up from 6% in 1964. reports that in 2006 “24 governors — the most ever — proposed boosting pre-school funding this year by a total of $250 million.” 124 This is no surprise. Researchers at the Federal Reserve Bank of Minnesota suggest that investments in early childhood education are among the most effective economic development initiatives a state can take. 125

The Opportunity Knocks study confirms national data that “students… living in poverty perform better in school after quality early care programs than do similar youngsters who do not participate in early care programs.” 126 But Delaware’s Early Childhood Assistance Program, while boosting the achievement of the children it does serve, 127 does not reach enough of Delaware’s children. 128 For example, in 2005 there were 12,910 children between the ages of 3 and 5 in Delaware families up to 200% of the federal poverty level, but only 8,337

receive subsidized services of any kind and only 843 were in state-funded pre-K. 129

While plenty of kids have access to preschool there is often a discrepancy in the quality of those programs. That’s why a rating system like the Delaware Stars program is so important. 130 Moreover, pay and benefits for many of the state’s child care providers are incredibly low, so turnover of staff is very high. This must be changed. In particular, state subsidies for care for children from low- income families must be increased and, in particular, tied to performance on the ratings scale.

Finally, I will propose that the General Assembly increase the amount of state funding to train highly qualified early- education teachers, including pre-kindergarten teachers. The FY 2008 budget includes $300,000 to enhance career training and education opportunities for early childhood workers, as outlined in Early Success, Delaware’s early childhood plan.

Building on the Basics: Making Schools Work Better

Reducing Student-Teacher Ratios in Early Grades.

According to the University of Delaware Education Research and Development Center, Delawareans join a majority of people nationwide in believing that “reducing class size is the best way to improve K-12 education in the U.S. today.” 131 Delaware State Law 1705A already requires districts to limit English, math, science, and social studies classes in kindergarten through third grade to 22 students. 132 The experience of a state like Florida, however, which has instituted sweeping reductions in all public school classrooms, shows that one of the biggest hurdles for states to reduce student-teacher ratios is finding sufficient numbers of qualified teachers.

I believe that it is important to give very young children as

much individualized attention as possible, and I agree that our pre-kindergarten through third-grade classes should be small. But I also credit the research, like the study by the Program on Education Policy and Governance at Harvard University, that concludes that, above all, we need to “employ… capable teachers.” 133

I will ensure that we have highly qualified teachers to staff

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our smaller classes by creating the “Teaching 21st Century Loan Forgiveness Program,” which will re-pay college loans for students majoring in designated teacher shortage areas. We will conduct an inventory of anticipated shortages in teacher subject-areas and grades. “Teaching 21st Century” loans will target these need areas, and be re-evaluated every two years. Students selected to the program would receive loan funds in the form of a voucher, paid each semester, which could be used for tuition, fees, books, and on-campus room and board. Educational institutions would accept the voucher for qualified expenses so that students would not have to front these costs. For each year of successful teaching service, we would forgive one year’s stipend.

I am proposing that we dedicate $1.2 million a year to the program for the next four years, enough to provide 400 loans each year of $3,000 per loan.

Changing the Way We Think About Teacher Recruitment, Training and Compensation.

The single most important factor in determining a student’s success and which is within the control of a school is the presence of a caring, effective teacher in the classroom. Delaware faces a challenge in the next decade as so many teachers in the “baby-boomer” generation retire. So we have a great opportunity to attract and retain the next generation of high quality teachers.

I propose we do the following:

Recruit students with high academic potential into teacher preparation programs.

Offer scholarships (or equivalent) that require a one-for-one year payback for each year of scholarship once they are employed as teachers in Delaware public schools.

• Create economic incentives for teachers to make long-term commitments, including additional salary stipends and/or contributions to deferred compensation accounts. These are especially important in hard-to-staff schools in order to attract skilled, veteran teachers to difficult teaching environments.

Evaluate the idea of developing a statewide salary schedule that would reduce the “poaching” of

teachers between districts.

Create housing incentives for educators, in partnership with private developers, financial institutions and/or the Delaware State Housing Authority to combat the challenges many teachers face in finding affordable housing.

Reduce and eliminate, if possible, the 90-day waiting period for health insurance benefits (and a similar change should be made for other state employees as well).

Create mid-and late-career roles that provide additional compensation for different types of non-management work within the schools (e.g., new teacher training, academic leadership, curriculum development, peer mentoring).

Work to create positive work conditions for educators including the very tangible (a safe environment, appropriate class sizes, a school with good heat, air conditioning, plumbing, etc., and with the essential educational materials) as well as the less tangible, like a principal and administrative staff who provide strong, sound educational leadership in a collaborative environment. From my own experience in the private sector, I know that the whole issue of working conditions is key, and propose that the state, in conjunction with the Delaware State Education Association, survey education professionals in Delaware to determine exactly how they regard conditions in Delaware.

And finally we ought to develop new models for teacher compensation. Surely any suggestion of changing the way we compensate teachers will generate plenty of controversy. But good models exist and we can learn from them. Consider what Brad Jupp, a former teacher in Denver’s public schools had to say about why he worked so hard to move that city’s Pro-Comp model of teacher compensation forward: “We are in an exceptional moment, one where the single salary schedule can no longer support the pressures placed on it by the expectations of a 21st century public education system.”

The Pro-Comp model uses a range of different measurements to reward professional practice. Specifically, there are four major components built into

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this program: market incentives (attracting teachers to challenging work environments or hard-to-fill specialties), student growth, knowledge and skills, and professional evaluations.

The Denver contract, reached after years of careful trial and error, is a delicate balance of many new ideas. The element that recognizes student growth does so based on

a choice of evaluation tools that is agreed upon by the

professional educator and her/his principal. Any disagreement is mediated immediately by a peer team comprised of a school administrator and a union representative. The Denver model also has a dedicated stream of funding to ensure that the funding necessary to implement the contract will actually be there.

After-School Enrichment:

After-school programs are effective in raising student skills because they feature educational and experiential activities that are critical for student development. These programs also combine fun with learning and provide the one-on-one instruction and hands-on learning that many children need to excel. School facilities are safe indoor and outdoor venues that can be used for after-school activities during afternoons, evenings, weekends, and vacation periods. Working with private-sector and community groups and using their own facilities as much as possible, schools can create and participate in low-cost after-school and extramural programs that pique student interest and achievement.

A bounty of public and private resources, including federal

grants, corporate foundations, local companies, and private foundations support these programs. In 2007, for example, Indiana received over $7 million in federal grant funds to improve academic achievement in math, science,

and reading for students from high-poverty schools.

As governor, I will ask the General Assembly to join me in asking for an audit of (1) our existing after-school programs and (2) sources of public and private funds for after-school enrichment for which Delaware would be eligible. We must better understand how effectively we are tapping into available federal, foundation, and corporate funding. And we must re-examine our state investments, making sure we support those programs that are meeting

measurable goals, that are used throughout the country and have a track record of success, and that have a sound business model. Following the audit we will consider appropriate state funding levels for a variety of after-school programs that meet national-best practices, targeting the state’s investments in those programs that work best and reach those in need.

Creating a First-Rate Special Education System.

Throughout Delaware special education is an issue fraught with intense emotion. Parents, teachers and the community at large appropriately emphasize the need to make sure that all of our children get the tools and resources they need to succeed in school.

From my conversations with parents and professionals, there seems to be agreement on the following points. First, there needs to be additional teacher training for addressing the needs of special-education students and the techniques that teachers can use to support students based on their specific diagnoses. In addition, we need to improve parental training so that parents can provide the necessary supports at home. Similarly, we should provide additional technical support in schools (professionals in educational psychology or with related in-depth training) to provide appropriate support to the classroom teachers and to provide the oversight, training, and follow-up to ensure that Individualized Education Plans are being implemented successfully.

Let’s face it, children have wildly different learning styles and many face particular challenges. Providing accurate diagnosis and evaluation, teacher and parent training and support, and real-time assessment of progress are the key structural supports regardless of school or home environment.

As Congress moves forward on whatever form reauthorization of No Child Left Behind takes, the federal government’s policies on special education, which form the framework for all that states undertake in this area, will necessarily be reshaped for the 21st century. I will advocate during this process for the improvements discussed above — and will work with Delaware’s congressional delegation and others at the national level

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to help ensure their passage, so that we can build the best possible special education program here in Delaware.

Resources We Need, Accountability We Can Utilize with Confidence









All of the foregoing badly needed efforts mean we will

need to invest in our education system and our children’s futures. I pledge to lead the fight to do so. But public resources must come with meaningful public accountability. Taxpayers, parents — and, ultimately, our children — have a right to expect that every dollar we spend on education is being used as effectively and efficiently as possible to produce results. There are many ways we can move in this direction, freeing up dollars for our schools while protecting taxpayers, and I intend to pursue these aggressively.

A recent study by the “Leadership for Education

Achievement in Delaware” Committee, established by Gov. Minner, identified between $86 million and $158 million in potential savings opportunities. Some of these are relatively low-hanging fruit, including streamlined transportation planning and coordinated purchasing across school districts. Others are more controversial. But when it comes to ensuring that our tax dollars are being spent wisely, we must agree to consider all proposals and evaluate them based on a single criterion: what is in the best interest of our students?

Specifically, we ought to put more discretion over spending closer to the student — in other words in the school building. Currently, decisions over staffing, equipment and the like are made at the state or district level. Strong leadership at the school building level obviously requires excellent, properly trained principals who know how to create a strong team-oriented working environment. Moreover, we are too heavily tied to inflexible formulas — the number of assistant principals, guidance counselors, teachers and other staff is tied directly to the number of students, without sufficient regard to the challenges each student confronts (e.g. special education, English as a second language, and high poverty).

There are some relatively mundane features of our education funding system which also must be changed. For example, we have to change the “September 30” date which dictates staffing levels. Currently, schools and districts are required to use the number of students as of September 30 to determine how many teachers and other staff they are entitled to. So in some cases, a school may learn on that date that it has enough students to hire an additional teacher. If the job is posted on October 1 and a new teacher is in the classroom on November 15, that means some students have to adjust to a new teacher 10 weeks into the school year. That does not make any sense and should be changed.

Finally, taxpayers deserve a straight answer on how funds are being spent and the results they are generating. The next three sections discuss ways we can do that.

Creating a Balanced Financial Accountability System for Delaware.

Detailed uniform measures of accountability, comparing districts across the state, and where appropriate, in other states, are critical to generating the public trust that a change in the funding system requires. I will make that happen.

In response to the challenges of No Child Left Behind, several states are employing a comprehensive audit methodology that was developed in Kentucky, with similar standardized school improvement programs in use in Tennessee (Tennessee School Improvement Planning Process-TSIPP), Colorado (Colorado System of School Support-CS3), and North Carolina (Closing the Achievement Gap). The audit process is based on statewide Standards and Indicators for School Improvement (SISS). There are nine standards for school operations in three categories:

Academic performance (which comprises curriculum; classroom assessment and evaluation; instruction);

Learning environment (school culture; student, family, and community support; professional growth, development, and evaluation); and

Efficiency (leadership; organizational structure







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Within these categories the audit considers 88 specific performance measures.

I am recommending that we study these audit models.

Under our present system, progress on school evaluation and improvement may be uneven because it relies too much on individual judgments and recommendations. By describing standard performance benchmarks for each school function as well as a standard audit protocol, as Kentucky has done, Delaware would be assured of having meaningful, uniform measures on which to assess both school performance and improvement. And that is a critical part of giving taxpayers the information they need to make informed judgments about the bang for the buck we Delawareans are getting for our schools.

Introducing a Far Better System of Student Evaluation.

A truly useful method for measuring accountability is one

that both teachers and students can understand, and one that reveals whether the correct amount of student learning is occurring. Unfortunately, there are multiple problems with our current method for measuring accountability, the Delaware State Testing Program. It is possible that the Congress will, through the upcoming reauthorization of the No Child Left Behind Act, address a major concern by converting to the use of a growth model to measure accountability. However, whether or not Congress takes this step, we must take the lead in Delaware. We must change to an adaptive testing method that provides our teachers and students more frequent and discrete information about learning gains — or the lack thereof. In addition, we must work with other states to build a testing regimen that allows for comparability beyond our own borders. Not only does the system of 50 different testing systems make interstate comparison difficult and invalid, it significantly increases expenses for the states that must develop their own standardized tests. Certainly, we must also modify our accountability practices to accommodate special-education students and English language learners.

Finally, a more solid and accurate measurement of accountability would result were we to add a qualitative component to the measurement system, and student portfolios would be an excellent tool to use in this

approach. Not only would portfolios present a more three-dimensional view of student performance, they would also increase student enthusiasm and interest in the accountability process.

These changes are necessary both because they are in the best interest of the students and because they are the only realistic foundation for any plan that pays the teacher based in part on student performance. Dr. David Berliner of Arizona State University writes that the current system of high stakes testing across the country is actually corrupting the teaching profession. 134

Effective Choice and Charter Program that Strengthen All of our Students.

Delaware has one of the only comprehensive public school choice programs in the country: Delaware’s students and families can choose to attend any public school in the State. We have moved early and fast to offer parents and their children an array of choices through our inter-district public school enrollment and the charter school programs. Our public school choice and charter school laws are considered “strong” by national researchers, and we rank third in the nation in the percentage of children who attend charter schools. 135 As of 2006, Delaware had 17 charter schools serving 7,576 students. 136

After more than a decade of operation for both programs, it is time to evaluate these policies and make the necessary adjustments. Are the programs working as originally desired or not? How do we know that? What measures are we using to determine this? Are school choices and charter schools helping or hurting the ability of existing public school districts to offer parents and students quality programs?

While clearly offering parents and students increased educational options, we must also determine if these policy initiatives are producing positive changes. For example, the three consecutive years of evaluation reports prepared for the Delaware Department of Education regarding charter schools revealed some successes and also brought to light issues of major public policy concern regarding the ‘new’ segregation of public schools. Certainly, one of the issues that must be addressed includes construction financing for charter schools, an

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issue which received considerable publicity in connection with the pursuit of conduit bond financing by the Delaware Military Academy. But that issue must be considered in the context of a host of issues, including those highlighted in the evaluation report prepared by researchers from Western Michigan University on behalf

of the Delaware Department of Education.

We do need to review how well charter schools and inter- district transfers are serving the needs of all Delaware families, regardless of race or socioeconomic standing. And we need parents to understand their options for utilizing charter schools — a deficit identified in Opportunity Knocks.

Opening a Career Fastlane: SAGE “Support, Accelerate, Graduate, Employ”

Today more than ever, our students will not succeed in the outside world if we do not forge strong connections between the classroom and the workplace. Ensuring this successful partnership means strengthening graduates’ science and technology, thinking and leadership skills; increasing graduation rates and college readiness statewide; promoting our community colleges; improving vocational or “career and technical” education in our secondary schools; and pursuing a Workforce 21st Century marketing campaign.



As governor, I will ensure that vocational education in Delaware remains strong by fostering next-generation

career and technical education (CTE) programs called “career pathways.” Career pathways, which exist in some Delaware schools today, offer students the opportunity to begin training for a high-wage career in high school by taking a series of progressively more advanced courses in

a particular technical area like electronics, computer programming, allied health care or engineering.




Rising Above the Gathering Storm, the report by the National Academies of Sciences, Engineering, and Medicine, 137 cites “creating opportunities and incentives for middle-school and high-school students to pursue

advanced work in science and mathematics” as one of the most important goals for the country. Career pathways provide that incentive because they blend academic STEM coursework with cutting-edge vocational training to give students both the knowledge and the know-how to compete in the new economy. Career pathways students complete the regular high school curriculum, but they also have the opportunity to take specialized college courses in their “career path” or professional discipline.

To facilitate career pathways, states must ensure that community colleges collaborate with their local high schools to offer “dual-credit” — or joint high school and college credit — for students who complete college-level work while still in high school. Delaware has a law that requires high schools and colleges to offer these programs, 138 but we must do more to make sure that dual credit options are easily available, and that parents and children know about the ways they can get an early start on college. States that have aggressively expanded dual- credit programs see both social and financial benefits. The Commonwealth of Virginia, for example, estimates that participation in college credit while in high school “save[d] students and their families up to $5,000 in reduced college-tuition costs.” 139

In addition to the array of state funds that support public school and higher education opportunities, we can use large federal grants, like Carl Perkins funding, to support these high quality CTE programs, and as governor I will ensure that we do.

“Workforce 21st Century” Marketing Campaign:

We know from national studies that Delaware does not do an adequate job of graduating students from high school in four years and, then, getting these high school graduates into college-level education and training. The career pathways public school/college partnership program that I have outlined will produce better outcomes, but only if they are widely utilized.

As governor, I will launch the “Workforce 21st Century” campaign to make sure our young people, parents and working adults understand the benefits of getting education beyond high school. Texas has devoted $10 million to its “Education—Go Get It” campaign. Delaware is a much smaller state, but no less important. I will work

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with the General Assembly to make $1 million available over four years to market the “Workforce 21st Century” campaign statewide, and I will personally meet with students and parents in town hall sessions about the Delaware’s menu of “Workforce 21st Century” career resources.

The “Workforce 21st Century” initiative will include a website that provides our hard-working Delaware families easy-to-understand information about preparing for and paying for college. I expect it will build on the website I introduced last year in my capacity as Chair of the Delaware College Investment Plan board.

Community Colleges:

A larger share of Delaware’s adults than the national

average are enrolled in college, which means our community colleges are doing a good job of meeting the needs of this critical segment of the workforce. Delaware Tech, the state community college system, was created in 1966, but has undergone a boom in the past decade. In 2006 there were nearly 41,000 enrolled in the college, and there are now 46 nationally accredited programs to meet the needs of Delaware’s citizens and employers — compared to just 15 in 1995. We have 66 articulation agreements allowing credits from Delaware Tech to transfer to other institutions, a 560% increase since 1995. 140

Delaware Tech administrators have launched an effort to make policymakers aware of a critical issue facing the institution. Space at Delaware Tech is at a real premium. Because of a shortage of specialized labs, science labs and computer classrooms, students in 32 programs (18 of them related to health care) are either on waiting lists to get into their major or have been denied access to courses they need. In fact, during the fall of 2007, there were 646 students who could not access one or more of the science courses needed to make progress toward their degree.

By 2012 Delaware Tech expects that number to more than

double. The overriding factor driving this increase in enrollment is the economy we live in, an economy which requires people to get additional education beyond the high school level in order to qualify for the good-paying

jobs that are available in our community. For example, Christiana Care recently announced a major expansion,

which will create 750 job openings in nursing and allied health care per year between now and 2012 with starting salaries between $50,000 and $65,000. Without funding to expand, administrators at Delaware Tech project that they will be unable to provide the number of job-ready graduates Christiana and the other health care agencies will need.

Despite the outstanding efforts at Delaware Tech, Delaware still has among the lowest rates in the country of workers with associate’s degrees. 141 This is unacceptable. Delaware Tech is one of our lead economic drivers. Unlike in many states, 90% of DTCC graduates work in Delaware after receiving education and training, and over 500 companies benefit from that skilled workforce. It cannot fulfill that role unless it continues to innovate as well and fortunately, Delaware Tech has innovated in a number of key areas.

Delaware must have a two-pronged approach to improving higher education opportunities, targeting both young people for two-year and four-year college degrees and adults already in the workforce who are underskilled for today’s jobs. It has the mechanism to achieve this coordination through its P-20 Council, which the Opportunity Knocks report rightly characterizes as one of our needed “first steps” in transforming Delaware’s education and training system. 142

As part of my platform for producing Delaware’s 21st century workforce, I will work through the P-20 Council to introduce the following workforce enhancement programs.

Broadening the Reach of Higher Education

High School Graduation Rates and College Readiness.

One of the most serious signs of the weaknesses that remain in our educational system is our low graduation rate, which at 39th is in the bottom quartile nationally and far below that of our neighboring states of Pennsylvania, Maryland, Virginia and New Jersey. 143 There is a tremendous cost to our low graduation rates. Not only do the young people who fail to graduate from high school

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stand to personally lose so much in lifetime earnings; but the state of Delaware also loses. According to one report, if Delaware could increase the high school graduation rate from just over 60 percent to 90 percent for all students, while maintaining college graduation rates, then an additional 2,900 students each year would have the opportunity for a better life, and an additional $2.6 billion could be invested in Delaware’s economy as a result of their higher earnings. 144

The Opportunity Knocks study also demonstrates that “our average performance on the SAT is substantially lower than that of our peers.” New York City, along with a number of states, has begun offering the PSAT free of charge to 10th and 11th graders. As a result of this policy shift, “[i]n just one year, [New York City was] able to increase the number of students taking that test by nearly 10,000. That's 10,000 more kids who are now thinking seriously about college and their futures.” 145

In Delaware, some districts already offer some of these programs. As governor, I will ensure that we use simple tools like this one to motivate all of our children to stay in school, to strive for college, to believe that they can be successful in college, and to hone the skills that can make them so.

Early College/Middle College.

Updating the school curriculum is among the most important changes in improving school quality. 146 Early College/Middle College programs are perhaps the most groundbreaking of new educational reforms to do just that. These schools are collaborations between school districts and colleges that allow students to complete two years of college or an associate's degree during the four years of high school.

The Early College/Middle College approach is particularly effective for students who have already dropped out of school or are at risk of doing so. By allowing students to take college and high school courses at the same time, we more effectively challenge “at risk” students and help them get through school faster. Dropouts often are not necessarily unable to learn, nor are they even poor students. Research shows that poor-performing students often do better when given a more challenging curriculum than they do in a dumbed-down environment.

Therefore, this approach eliminates duplication in the curriculum and the need for costly and demoralizing remediation of high school graduates in college, eases transition into college, and reduces the number of years required to degree completion, thereby reducing barriers to college for many students.

The Knowledge Works Foundation, in collaboration with the Kellogg Foundation, the Gates Foundation and Jobs for the Future, has started eight Early College high schools in Ohio. According to Knowledge Works, students in all eight pilot projects are taking and passing college-level courses, beginning as early as the freshman year of high school, and according to an early evaluation of the program by Harvard University’s Graduate School of Education, Ohio’s Early College students are preparing to go to college in far greater numbers than their peers in urban public schools. 147

The Bill and Melinda Gates Foundation has provided more than $120 million to support the development of Early College schools across the nation. Since 2002, the partner organizations of the Early College High School Initiative have started or redesigned over 130 schools in 24 states. None are in Delaware. 148 Through the Initiative’s continued efforts, the partners will ultimately open about 250 small schools, serving over 100,000 students annually.

As governor, I will make sure that we take a closer look at the successes the program has had in other states and experiment with this new model in Delaware.

Scholarships for Students With Solid Citizenship.

When it comes to higher education, Delaware is a state of haves and have-nots. We know that Delaware’s economy depends on more two-year and four-year college graduates. But compared to other states overall, relatively few Delaware high school graduates enroll in college immediately after high school, 149 and cost may be one reason why. The 2006 national Measuring Up higher education report card gives Delaware an F for college affordability: In the past decade, state college aid per student has decreased 37%, from $62 to $39. 150 Other states devote more of state resources to need-based financial aid. I will make college more affordable. Currently, students in Delaware who meet certain qualifications may qualify for what we call a SEED

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scholarship. These scholarships are for “Delaware students who stay in school, work hard, and stay out of trouble.” 151 While this program provides excellent opportunities, it is only a beginning. We must expand the program beyond its two-year, associate’s degree limitations so that we can provide qualified Delaware students with a four-year college education and a bachelor’s degree.

University Research and Development:

Delaware’s two public universities—the University of Delaware and Delaware State University—are institutions to be proud of. The University of Delaware, one of the oldest public universities in America, is recognized among the 100 best universities in the country. 152 Delaware State, an honored historically black university for more than 100 years, was ranked in 2006 as the 13th best university in the United States for graduating black students. 153

But despite our success in producing a high-quality, homegrown workforce, Delaware has not done enough to develop its universities as engines of economic growth. In the past 50 years, technological change has been responsible for as much as 85% of income growth and more than half of the nation’s economic growth. To maintain its preeminence in the rapidly evolving knowledge economy, the United States must continue to excel in basic research — 60% of which is supported by federal funding.

Delaware’s immediate neighbors, including Pennsylvania, Maryland and Virginia, are among the highest recipients of federal research funding and venture capital investment, much of which is attributable to the unique assets of the University of Pennsylvania, the University of Virginia and the University of Maryland, which rank fifth, 23rd, and 54th respectively compared to the University of Delaware’s 71st place in the 2008 ranking of the best U.S. colleges. 154 Delaware has the capacity to rival its sister states along the Eastern Seaboard for venture capital investment, R&D, and business activity in the industries that will dominate the future — bio- and nano- engineering, information technology, and renewable and advanced energy — but it must have a comprehensive, strategic plan for doing so.

I am proposing the following four interrelated programs

to increase the economic impact of our universities, each of which leverages the state’s investment with federal and private funding.

We know from the experiences of states like North Carolina, California and Kentucky that world-class universities attract capital. This is true for several reasons:

businesses partner with universities to develop new technologies, commercialize technologies, share facilities and talent, and recruit workers. They have an economic incentive to locate in proximity to their university partners, where they can benefit from innovations spinning out of federal and academic research and access the best scientific minds.

I am proposing to create an investment fund over the next three years to raise the quality of research projects and research faculty at the University of Delaware and Delaware State. To tap into the state fund, the universities will have to raise private matching dollars. Over the past decade Kentucky has invested over $350 million (matched by private donations for a total investment fund of $700 million) to stimulate research and innovation in its universities. Delaware has the highest per capita real gross domestic product (GDP) in the United States, compared to Kentucky, which ranks 43rd. 155 I am challenging all Delawareans to join me in demanding that we invest in making the University of Delaware a top-tier research institution by 2025 and begin immediately to strengthen our capacities for innovation, intellectual leadership and technology commercialization, and to generate jobs in emerging high-tech, high-wage industries.

Second, we will create additional incentives and support statewide to increase grant funding. We will match

additional grant resources that the universities and colleges raise from the federal government. We also will form the Governor’s Grants Office to help our State better maximize federal and foundation support for its major initiatives. Maryland established a Governor’s Grants Office with a full-time staff devoted to identifying federal grant opportunities, with the result of growing federal grant funding from $5.5 billion in 2005 to $7.5 billion in


Finally, I am proposing that we establish the Delaware Technology Partnership at Delaware State University as a

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public-private venture. The partnership would link students from Delaware State with summer internships in high-tech companies. We would provide Delaware State $150,000 per year to cover the costs of promoting the program and hosting “job fairs” to introduce prospective students to employers. Employers would contribute internships and mentoring. In addition to this annual funding, I will seek $100,000 in seed funding to put an organizational structure in place and recruit partners and stakeholders to the enterprise.


It is time for Delaware to take our education system to the next level – by providing opportunities for all children to become future leaders, ensuring a high quality public school experience that opens the door to college and the world of work, and preparing collegians with the skills to succeed in the real-world workforce.

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I’m running for governor for a simple reason: I believe Delaware can do better.

All over the state, I hear the same thing again and again:

Delawareans love it here, but they also know we can do better. There is a thirst for change – not for more of the same, with perhaps a slight tweak here or there, but for truly changing Delaware for the better. For making Delaware a place of opportunity for our kids and their generation, as it has been for so many of us.

And while that bright future is certainly possible, it’s not assured.

We have some wonderful businesses in Delaware. But many of the major employers of my childhood – Dupont, General Motors, Chrysler, Hercules and NVF – have downsized or moved away.

We have some terrific hospitals and one is even building a $200 million expansion – but we also have more than 100,000 people in Delaware, including 20,000 children, with no health insurance. And even more are struggling to keep up with rising insurance costs.

We have some great institutions of higher learning and the University of Delaware even has a $1 billion endowment – but our high school graduation rate ranks about 40th in the country, and half of our African-American and Hispanic kids drop out of high school before graduating.

We have a fantastic court system and a wonderful legal industry – but our state ranks among the very lowest in creating new businesses.

I’m not satisfied with any of that – and I bet you’re not either. And that’s what this election is all about.

We can either settle for the way things are – or we can try to do better. For our state. Our schools. Our families. Our children.

We can either vote for more of the same – or we can choose to move forward.

We can either accept that Delaware is good enough – or we can aim to make it the best.

I believe that we can make the First State first again.

That’s what I’ve attempted to do as your state treasurer for the past nine years. Here’s a small example:

Every year, Brown University’s Taubman Center for Public Policy, in an independent national survey, ranks every state for its e-government services to citizens. In 2000, the first year of the study, it ranked Delaware 50th in the nation – dead last. The next year I was asked to lead an effort to revamp the way the state manages information technology. Along with a group of terrific folks on the Information Technology Task Force, we helped turn things around. I was able to use my experience in the private sector – when I helped build from scratch what became a leader in the cell phone field – to modernize the state’s use of information technology.

Led by a new team at the Department of Technology and Information and outstanding public servants in the Government Information Center, Delaware aggressively pursued several initiatives to provide enhanced state services via the internet. They worked to lift Delaware out of last place – and they did.

Last year, in the same study, as a result of these efforts, Delaware was ranked first in the nation. From last to first.

I believe that if we can make Delaware Number One in a category in which it recently ranked dead last, then we can make Delaware Number One in every category. And we should.

And that’s why I’ve worked so hard over the last eight years to reduce the cost of government by tens of millions of dollars by negotiating better deals from vendors doing business with the state.

That’s why I worked hard to increase the number of families participating in the Delaware College Investment Plan by more than 20,000. Together, those 20,000 families have saved $300 million.

That’s why I started a nationally-recognized initiative to help state employees get physicals and learn how to improve their health. That brought down the cost of their healthcare – which saved them and the state money – and improved their health.

That’s why, when I learned that 10% of the people in this state didn’t have a checking account – and that even more

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lacked basic financial literacy skills – I started the Delaware Money School, providing free classes to thousands of people, teaching them to balance a checkbook, build a personal budget, and better manage their own money. These classes have helped more than 25,000 people in Delaware learn basic financial literacy skills, so they can have more control of their own lives and stretch their paychecks further.

And it’s why, along with the incredible folks at the Nehemiah Gateway Community Development Corporation, I organized hundreds of volunteers to help tens of thousands of Delawareans file their taxes: Have

you ever heard about the EITC – the earned income tax

credit? It’s a tax refund that rewards hard work by those people earning the minimum wage or slightly above it.

But it’s complicated to understand. Most working people

don’t have accountants or financial advisers; too many don’t even know about the EITC, let alone how to go about filing for it. But as a result of the effort we put together, last year alone, these volunteers helped their neighbors get more than $15 million in refunds they otherwise wouldn’t have received. They made a real difference for people like Stacy, a single mother struggling

to raise two kids – our volunteers discovered that she was eligible for a $1,500 refund, which she used to invest in a

CD for each of her children, saving money for their

futures. She had never had a savings account before. But now thousands of Delawareans have money they never

had before, their children have brighter futures – and

they need to rely on taxpayer assistance less than they

might have otherwise.

All because these Delawareans share my belief that we don’t have to settle for more of the same – we can strive for the best.

That’s the kind of state treasurer I’ve been. And now, it’s

why I’m running for governor – because I believe we can

do better. I believe that we can make Delaware #1 in all

these areas – efficient government, college affordability, health care, financial opportunity, and more – just as we did with technology. And my record in the private sector

and in the treasurer’s office proves that: We can become

#1. I believe that we should.

That’s why all the programs and ideas I’ve proposed in

this book aim for the best. I don’t want to prepare just some of our kids for the jobs of the 21st Century – I want to prepare all of them to do their best. I don’t want just to ensure that some Delawareans get the health care coverage they need in the next four years – I want to make affordable, high-quality care available to all our families. I don’t want to stop crime and violence in some parts of our state – I want to protect all our citizens. And I don’t want to see Delaware take another eight years to go part way toward our goals – I think Delaware deserves a governor who wants to actually cross the goal line, and has a plan to get us there. As I said at the outset, as treasurer I have interpreted my mission broadly, embraced new ideas, stressed collaboration, and insisted that we do whatever it takes to make a positive and measurable difference for Delaware’s families and for our state – and that’s what we need from a governor, as well:


Our next governor needs to do more to relieve the burdens of middle-class families. That starts with having the vision and know-how to attract the good high-paying jobs that keep our economy vibrant. We must take bold steps toward improving the economic development climate here in Delaware if we are going to make sure that Delaware remains a great place to live and work. My “TIME” plan – Turning Ideas into Meaningful Employment – sets the goal of creating 25,000 new jobs during my first term as governor. The plan combines the resources of Delaware’s schools, businesses, banks, agricultural community and government to build new businesses that will flourish here at home. I’m the only candidate with a concrete plan to improve our economy and create 25,000 jobs in the next four years: I will start by fostering an educated, skilled workforce. And I will invest in programs that protect our natural resources, strengthen our local communities, and highlight our lifestyle to attract high-wage industries.

Health Care:

For too many people, our health care system isn’t working and we need a change. Unfortunately, our state has been heading in the wrong direction, with the percentage of uninsured rising more rapidly in

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Delaware than in most other states. I’m convinced we can’t tinker around the edges of the problem and pretend that small solutions will spark major improvements. As governor, I will make it one of my top priorities to make Delaware a model for the nation when it comes to containing costs and to providing health care that can never be taken away. First, we will focus on enrolling Delawareans who are already eligible for health coverage programs. Second, we will provide all Delaware families with the opportunity to purchase affordable coverage for their children by making the Delaware Healthy Children Program available to all kids with sliding scale premiums based on family income. Third, I will establish a Diamond State Health Marketplace to develop a comprehensive, affordable, and portable health care delivery system available to all small businesses, sole proprietors, uninsured individuals, and families. All Delawareans who like their current health coverage will have the option to keep it; but for those who are not satisfied, or those with no coverage at all, my plan will provide affordable coverage through a large risk pool to open up access and drive down costs. Fourth, employers should contribute to the cost of coverage for their workers, or pay the public for the coverage we must pick up for them. And to ensure access to and continuity of health care coverage, I will require insurers to guarantee coverage for all individuals. Underlying all of these initiatives will be a deep commitment to containing health care costs.

Early Childhood:

We must make sure that every child shows up on the first day of school ready to learn and we must remember that the first 1000 days of a child’s life play a significant role in his or her success in school and in life. As governor, I will introduce legislation to provide state matching funds for the Delaware Parent Leadership Institute to strengthen school-family ties and online tools to keep parents informed about their children’s progress and to help reinforce classroom learning at home. I will expand access to high-quality early childhood education, offering full day kindergarten and lowering class sizes in elementary school, and offering additional learning time to those who need it the most, including after-school enrichment. I will

improve and expand those effective programs aimed at low-performing students, and will push as governor to expand pre-kindergarten for all 3 - and 4 -year olds whose families are within 200% of poverty. In particular, state subsidies for care for children from low-income families must be increased and tied to performance. And I will increase the amount of state funding to train highly qualified early education teachers.


We need to support our teachers and improve the quality of our schools. I will ensure that we have highly qualified teachers by creating the “Teaching 21st Century Loan Forgiveness Program,” which will re-pay college loans for students majoring in designated teacher shortage areas. I will also recruit students with high academic potential into teacher preparation programs, create economic incentives for teachers to make long term commitments, and create mid-and late-career roles in new teacher training, academic leadership, curriculum development and peer mentoring. And, while parents want schools with the resources to ensure their children have the tools and facilities they need to learn, those resources must come with accountability. Detailed uniform measures of accountability, comparing districts across the state, and, where appropriate, in other states, are critical to generating the public trust that a change in the funding system requires. I will make that happen.

Higher Education:

Right now, a college education is out of reach for too many Delawareans because they cannot afford tuition. I want to change that. The SEED scholarship program provides excellent opportunities, but it is only a beginning. I will create a new program that goes beyond SEED’s two-year, associate’s degree limitations to provide qualified Delaware students who have financial need with a four- year college education and a bachelor’s degree. I want to reward students who study hard and live right. Every Delaware child should have the opportunity to earn a bachelor’s degree and to compete for the best jobs. Financial hurdles are a huge problem, but they are not the only thing that keeps a college education from being accessible to everyone. If we are going to do better we

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need to be creative about keeping kids focused on and motivated by getting a college education. One size doesn’t necessarily fit all, and an early/middle college program will help us tap into the talents of some kids who aren’t taking the next steps today. Fostering a vibrant research atmosphere within our universities is crucial if we want Delaware to do well in the 21st-century economy and beyond. It will help attract top researchers, whose innovations in technology and science will drive economic growth, and it will give great opportunities to our students to learn at the highest levels. It’s a win, win, win scenario.