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Legislative wrap-up

Joint Finance Committee restores senior property tax credit

Funding also approved for school buses, childcare expenses
June 3, 2022

Members of the Joint Finance Committee voted recently to restore the senior property tax credit that had been slashed in recent years during budget shortfalls.

The bicameral committee approved increasing the tax credit by $100, bringing the amount to $500.

Under the program, homeowners age 65 or over are eligible for a tax credit against regular school property taxes of 50%, up to $400. 

Those who moved to Delaware after Jan. 1, 2018, must reside in the state for 10 years to be eligible for the credit. The tax credit may only be used against property taxes on a primary residence.

Lawmakers of both parties have advocated restoring the tax credit to $500 in the state’s operating budget, which will need final approval by the General Assembly by the end of June.

According to the Department of Finance, in fiscal 2021, more than 70,000 property owners received the senior property tax credit, averaging about $340.

School bus funding approved

The JFC earmarked nearly $17 million for bus drivers, bus maintenance and other public school transportation costs.

About $11 million will go to increase the minimum hourly rate for bus drivers from $15.92 per hour to $21 per hour. Another $1.4 million would go to increase basic bus maintenance by 30%, and $3.8 million would be for administrative expenses.

Officials said low pay has been a top issue in recent years as public schools have faced school bus driver shortages.

Childcare funding to increase for low-income families

The Purchase of Care program that provides childcare for low-income families would see a 29% increase in funding, after the JFC approved the proposal.

The JFC voted to add $18.9 million to the program that subsidizes early childhood and after-school education for children from birth through age 12 living within 185% of the federal poverty level. 

The funds help low-income families pay for their childcare so that parents or guardians can work or receive workforce training, officials said.

In approving the funding increase, the Joint Finance Committee noted that those funds "to the maximum extent possible" would be used to provide wage increases to childcare workers, and address workforce shortages and retention issues.

Bill seeks to create Office of Inspector General

A bill that would establish an independent and nonpartisan Office of the Inspector General and the position of the inspector general awaits action in a House committee.

The bill, sponsored by Rep. John Kowalko, D-Newark, and Rep. Michael Smith, R-Pike Creek, would create an inspector general to protect the health and safety of Delaware residents, assist in the recovery of misspent or inappropriately paid funds, and strengthen government integrity and public trust in government operations.

The office would be tasked with investigating the management and operation of state agencies to determine if there has been waste, fraud, abuse, mismanagement, corruption or other conduct that is harmful to the public interest. Through an investigation, the office would coordinate with other agencies, recommend corrective actions and statutory revisions, and, if necessary, make referrals to law enforcement. Finally, the office would provide reports to the governor, attorney general, and General Assembly. The reports would be available to the public on the OIG website. 

The inspector general would be selected by a panel that would provide three names to the governor for consideration. The governor would then select a nominee and submit the nominee for confirmation by the Senate. Under this act, the work of the Office of the Inspector General would begin by March 1, 2023.

The bill awaits action in the House Administration Committee.

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