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Gov. John Carney signed a financial package slightly larger than the one he proposed earlier this year. | PHOTO COURTESY OF THE OFFICE OF THE GOVENOR[/caption]
DOVER — When Gov. John Carney signed the record-setting budget for the state government in late June, he also authorized $1.4 billion in capital improvement projects and $72 million in grants in aid for various service organizations.
The bond bill was roughly on par with the same amount allocated last year, while this was the largest grants-in-aid bill on record. The signed proposal was up from Carney’s proposed grants package of $59.8 million that he outlined in January.
The grant-in-aid bill supports not only a variety of nonprofits, but also the state’s volunteer fire companies, county ambulance crews and veterans organizations.
Within that allocation, nonprofits and other one-time grants comprised $32 million – and family and youth-oriented organizations received a bulk of that funding at roughly $7.4 million.
“Those requests continue to grow, and I do think that’s a reflection of the pandemic impact on learning,” Delaware Alliance of Nonprofit Advancement CEO and President Sheila Bravo said.
Compared to last year, family and youth services saw a 20% increase.
On the other side of the coin, senior centers received the smallest year-over-year increase of 3%. The FY 2024 bill outlines $8.7 million, although Bravo noted some agencies may have received more funding in a separate section of the bill.
“That’s kind of a mixed message, because those organizations may have the slowest growth of all. And they serve one of the fastest growing populations in Delaware,” she said.
Arts and cultural groups received $2.6 million; labor and health organizations received $4.7 million; alcohol and substance abuse agencies received $1.3 million; and neighborhood groups received $6.6 million.
Bond Bill overview
In the eleventh hour, the capital spending plan was held up in the House of Representatives, as Republicans attempted negotiations on a bill that would grant nonresident owners of public entities a vote in Seaford’s municipal elections. After a day of negotiations, the Seaford election change passed the House in exchange for passing the capital spending bill.
“Let’s be clear about just how vital the Bond Bill is to our state. The Bond Bill is a $1.4 billion budget that funds construction, building repair and road paving projects in all three counties. Without this bill, road repairs stall, school improvements fall behind, and environmental protection initiatives remain in limbo,” House Speaker Valerie Longhurst (D-Bear) said in a statement on June 30.
In all, the bond bill allocates $170 million more than what Carney proposed last year, as higher-than-anticipated revenues fueled the boost. Top priorities include $354 million for statewide transportation projects, which is $30 million more than the governor suggested.
Another $80 million was earmarked for school construction in the Appoquinimink, Brandywine, Colonial, Milford, New Castle County Vo-Tech and Sussex Tech school districts. Among other top spending priorities were $19.9 million for statewide park improvements, $21 million in clean water revolving funds, and $9 million for the School Safety and Security Fund.
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The University of Delaware successfully lobbied for $15 million for a SABRE Center. | DBT PHOTO BY JACOB OWENS.[/caption]
Economic Drivers
Carney’s proposed budget for economic development slightly pared back two mainstay programs that issue grants to businesses looking to expand or arrive in the first state: the Strategic Fund and the Graduated Lab Space Fund. The governor proposed $25 million for the Strategic Fund and $10 million for the Lab Space Fund.
Instead, the Capital Improvement Committee reduced the strategic fund to $20 million and the Lab Space Fund to $5 million. The remaining funds were reallocated to the National Institute for Innovation in Manufacturing Biopharmaceuticals’ (NIIMBL) SABRE Center, which is an acronym for Securing American Bio-Manufacturing Research and Education, at the University of Delaware’s STAR Campus, according to the controller general’s office.
Federal earmarks provided $15 million to the center, and the University of Delaware successfully lobbied lawmakers to match that in the bond bill. Carney did not fund SABRE in his original proposal.
“[UD] and NIIMBL are grateful to the Governor and the legislature for continued support from the state that leverages significant federal and private sector co-investment in biopharmaceutical manufacturing innovation,” NIIMBL Director Kelvin Lee said in a statement. We are also grateful to have the state's support, alongside additional funding from the federal government, to help create the SABRE Center - a place to scale-up innovative technologies and train the biopharmaceutical workforce of the future leading to significant benefits to our economy and future public health."
Otherwise, the governor’s proposals for broad economic engines remained ultimately intact. The Transportation Infrastructure Investment Fund, which backs changes to the state’s roads, railway and more to support large development projects, remained at $5 million.
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The area around Loockerman Street could see heavy redevelopment, as the bond bill awarded $4.5 million for Downtown Dover Partnership's master plan efforts. | DBT PHOTO BY KATIE TABELING[/caption]
Old, new funding requests
REACH Riverside secured $5 million, to aid the WRK Group’s vision of a purpose-built community in Northeast Wilmington. WRK Group CEO Logan Herring Sr. told the Delaware Business Times the funding would be used in the nonprofit’s “real estate strategy” to acquire blighted and underused properties.
The next main focus, Herring said, is the property in the 30.2 census tract, or the Riverside- 11th Street Bridge area, north of the Brandywine Creek and south of Edgemoore.
“The end goal is to turn these properties into communal assets, in line with our holistic approach to revitalize the community,” Herring said. “We are grateful for the continued support of the state to achieve our vision.”
NIIMBL also received $5 million in Carney’s proposed capital budget, although UD officials hoped for more.
In the final capital spending plan, Newport’s allocation for a National Environmental Policy Act (NEPA) study was raised to $8 million. Those funds would start the study on the impact of a potential Newport Train Station to allow SEPTA to improve service in the southern Wilmington corridor.
Seaford was granted its $1 million for “economic development” Carney proposed, ostensibly to be used for the future Western Sussex Business Park.
New additions to the bond bill include $4.5 million for revitalization of Downtown Dover, which is planned to span years and involve 15 acres of land. Half a million is earmarked for the critical improvements program, which will aid businesses in making buildings ADA compliant and making commercial-ready kitchens. The rest of the funding will be used for site readiness in the downtown district, including demolition and remediation funds.
“We have a request for qualifications out now for 120 S. Governor’s avenue, and we believe the funding will help support rebuilding our community outlined in our master plan,” Downtown Dover Partnership Executive Director Diane Laird. “We are grateful for our delegation’s hard work. Without our delegation’s support, we would be at a loss on our next steps.”
Finally, the bond bill also funded $1.1 million for the oyster hatchery program in Lewes, with research and development of a rising aquaculture industry.
