NCCo unscathed after legislative session

For the last several years now, New Castle County officials have lobbied their counterparts in Dover to authorize new revenue sources they say are critical to the government's long-term fiscal health.

But once again this year, June 30 -- the final day of the legislative session -- came and went without any progress on that front, and the fiscal health of the county remains largely tied to two revenue sources: property taxes and real estate transfer tax.

So why is County Executive Chris Coons claiming victory in his dealings with the General Assembly this year?

"When this year began, we fully expected we'd have to fight hard to maintain our revenue sources," he said. "So we're thankful the state kept our revenues intact."

Indeed, as the county works to close a long-term structural operating deficit that peaked at $40 million last year, the state was facing it's own budget problems. Couple that with the toll the economy is taking on taxpayers, and legislators weren't in the mood to authorize new funding streams for the county.

"The members of the General Assembly and the governor and the leaders we've met with have accepted our argument and agree that the county needs a bigger range of revenue sources, but the message we got was not right now," he said.

And so New Castle County will go another year without the lodging tax and cell phone 911 surcharge it has sought since both were recommended by a financial advisory panel convened by Coons back in 2006.

Still, lawmakers did take action on several items impacting Delaware's largest county. Here's a roundup:

1. Library funding
Through its Bond Bill process, the General Assembly authorized an additional $784,357 for construction of a new 15,000-square-foot Claymont Library. Initially, the state pledged $1.5 million in the next budget year, but the additional funding brings the state within $1 million of its 50 percent share of the multi-year project. The county has pledged more than $3 million of its own funds as well.

Another $500,000 for Bear Library renovations was also included in the Bond Bill, though the county requested $1.4 million. The balance is expected to be funded in the coming years.

2. Paramedic funding
Since Coons took office in 2004, he's seen the state's contribution toward county's paramedic service drop from 60 percent to 30 percent. The good news: It didn't dip any lower this year. Chief of Staff Nicole Majeski said the county had some concern that the state could reduce its share for a fourth time in six years.

3. Police funding
With an across the board, 10 percent reduction in grants by the General Assembly, a fund the county typically uses to pay its police officers took a slight hit. The $500,000 used largely to pay officers to work overtime in targeted neighborhoods has been reduced to $450,000 for the fiscal year that began July 1.
 
4. First-time homebuyer credit
While legislators failed to pass a bill to revamp the county's first-time homebuyer incentive program before the session ended June 30, Majeski said the county has made progress in securing support for a vote when the legislature reconvenes in January. The bill would set up a sliding scale for the size of the incentive offered based on the purchase price of homes. Under the current setup, first-time homebuyers do not have to pay the county's 1.5 percent portion of real estate transfer tax, no matter the value of the home.

"It was against common sense that people paying $600,000 or $700,000 for a home would need an exemption to get them to the closing table," Coons said.

5. Dog Control
A bill soon-to-be signed by Gov. Jack Markell completes the transfer of dog control responsibilities from the state to the county. The bill calls for the county to oversee a Dangerous Dog Panel, comprised of veterinarians and other dog experts who will rule on the fate of a dog that attacks a person or other animal. The Kent County SPCA, which handles dog control for the entire state, will administer the panel but the county will have to pay for a court stenographer to attend any hearings. In return, the county will collect any fines levied against dog owners. Last year, there were eight dangerous dog hearings in New Castle County.