Tag Archives: budget

Delaware to Receive Substantial Increase in Construction Spending

Delaware legislature adjourned its session on July 1 after allocating nearly $900 million for the state’s construction projects in the coming fiscal year.

The lawmakers approved $863 million budget for major road, school and other construction projects as they wrapped up the session and headed into their summer recess.  The bill is a substantial increase, not only over funding from the previous fiscal year but from Governor John Carney’s January proposed amount of about $678 million.

The bill earmarks $425 million for transportation projects (up from $368) and $437 million in non-transportation construction spending, including maintenance, technology, equipment, economic development, and environmental projects, according to the Associated Press (down $10 million). The additional funds on top of the governor’s proposed budgets were available because revenue projections are significantly higher than they were last June, the AP story said

Another bill with implications on the industry will have to wait for the next session. Senate Bill 95 sought to change the definition of “independent contractor,” which would then require workers to pay taxes through a social security number. Currently, they can use an Independent Taxpayer Identification Number (ITIN) to file and changing that would mean workers who are undocumented immigrants who can’t get social security cards could not work—and contractors who need workers might not be able to find enough.

The senator who sponsored the bill told WBOC, the intention was to regulate the way contractors treat their employees. Upon hearing from those concerned about the ramifications of such a law on undocumented immigrants, he and his fellow lawmakers proposed a change in the language in the bill that would allow workers to use an ITIN to register with the department of labor and not reveal their immigration status.

PA Governor Seeks To Fund Infrastructure with Shale Tax

Like most states across the country, Pennsylvania is need of major infrastructure upgrades. This week, Governor Tom Wolf announced his budget, which included a plan to restore and upgrade infrastructure across the state.

His budget included $4.5 billion for “impact projects” throughout Pennsylvania, including high-speed transportation and internet, over the next four years, but the cost would be covered by a proposed severance tax on natural gas drillers and not everyone supports that proposal.

This shale tax is something Wolf has tried in the past, according to The Philadelphia Inquirer, which says the state’s Republicans immediately opposed the Democratic governor’s plan and said it would adversely impact the drilling industry in the state.

Pennsylvania currently imposes an impact fee on shale gas wells but does not tax the amount extracted.  The fight over the tax could delay the budget from passing and the money from getting to the infrastructure projects where it is needed.