"Creating a Better Future Together""Creating a Better Future Together"

The ProblemThe ProblemThe ProblemThe ProblemIssues facing the State and the EconomyIssues facing the State and the EconomyIssues facing the State and the EconomyIssues facing the State and the Economy

1. The State of Delaware maintains 13,731 lane miles of highways.

Slow Job Growth - 25% unemployment rate in construction Slow Job Growth - 25% unemployment rate in construction industryindustryLack of new and sustained infrastructureLack of new and sustained infrastructureTraffic congestion (Delaware beaches, Newark, Milford, Traffic congestion (Delaware beaches, Newark, Milford, Wilmington, etc.)Wilmington, etc.)Delayed (shelved) safety infrastructure projects (over 50 projects)Delayed (shelved) safety infrastructure projects (over 50 projects)Poor Pedestrian and Bicycle safety recordPoor Pedestrian and Bicycle safety recordHighest ranking traffic congestion rates in country Highest ranking traffic congestion rates in country Powerful corporations investing and moving to other states with Powerful corporations investing and moving to other states with more modern and durable infrastructures and economiesmore modern and durable infrastructures and economies

ConclusionConclusionLack of adequate transportation infrastructure hurts economic Lack of adequate transportation infrastructure hurts economic development opportunity over a broad spectrum of industries. development opportunity over a broad spectrum of industries.

Slow Job Growth - 25% unemployment rate in construction Slow Job Growth - 25% unemployment rate in construction industryindustryLack of new and sustained infrastructureLack of new and sustained infrastructureTraffic congestion (Delaware beaches, Newark, Milford, Traffic congestion (Delaware beaches, Newark, Milford, Wilmington, etc.)Wilmington, etc.)Delayed (shelved) safety infrastructure projects (over 50 projects)Delayed (shelved) safety infrastructure projects (over 50 projects)Poor Pedestrian and Bicycle safety recordPoor Pedestrian and Bicycle safety recordHighest ranking traffic congestion rates in country Highest ranking traffic congestion rates in country Powerful corporations investing and moving to other states with Powerful corporations investing and moving to other states with more modern and durable infrastructures and economiesmore modern and durable infrastructures and economies

ConclusionConclusionLack of adequate transportation infrastructure hurts economic Lack of adequate transportation infrastructure hurts economic development opportunity over a broad spectrum of industries. development opportunity over a broad spectrum of industries.

Issues facing the State and the IndustryIssues facing the State and the IndustryIssues facing the State and the IndustryIssues facing the State and the Industry

Across a variety of measures, Delaware's labor market is hurting.

First, the state's official unemployment rate is 7.2%, double the historic average of 3.5%. This means 32,000 persons have actively looked for a job in the past four weeks without success. Five years ago this group

totaled 15,000 Delawareans.

The U.S. Bureau of Labor Statistics (BLS) recently collected more detailed data on "discouraged workers." Discouraged workers are people

who are not in the labor force but want to, and are available for, work, and had looked for a job sometime in the prior 12 months. They have not

searched for work in the prior 4 weeks, specifically because they believed no jobs were available for them. There are an estimated 4,000

discouraged workers in Delaware at this time.

In addition, the BLS measures the extent of "marginally attached" workers. The criteria for the marginally attached are the same as for discouraged workers, with the exception that any reason could have

been cited for the lack of job search in the prior 4 weeks. Currently the population of marginally attached workers in Delaware is estimated to

be 27,000.

So, totaled together, the unemployed, the discourage workers, and the marginally attached workers make up 14% of Delaware's labor force.

CAESAR RODNEY INSTITUTE JUNE 2013

Across a variety of measures, Delaware's labor market is hurting.

First, the state's official unemployment rate is 7.2%, double the historic average of 3.5%. This means 32,000 persons have actively looked for a job in the past four weeks without success. Five years ago this group

totaled 15,000 Delawareans.

The U.S. Bureau of Labor Statistics (BLS) recently collected more detailed data on "discouraged workers." Discouraged workers are people

who are not in the labor force but want to, and are available for, work, and had looked for a job sometime in the prior 12 months. They have not

searched for work in the prior 4 weeks, specifically because they believed no jobs were available for them. There are an estimated 4,000

discouraged workers in Delaware at this time.

In addition, the BLS measures the extent of "marginally attached" workers. The criteria for the marginally attached are the same as for discouraged workers, with the exception that any reason could have

been cited for the lack of job search in the prior 4 weeks. Currently the population of marginally attached workers in Delaware is estimated to

be 27,000.

So, totaled together, the unemployed, the discourage workers, and the marginally attached workers make up 14% of Delaware's labor force.

CAESAR RODNEY INSTITUTE JUNE 2013

How How BadBad is Delaware's Labor is Delaware's Labor Market?Market?

How How BadBad is Delaware's Labor is Delaware's Labor Market?Market?

FACTFACTFACTFACTIn 2012, Delaware

ranked 49th out of 50 States in overall job

growth

The Cost of The Cost of Doing Doing

NothingNothing

The Cost of The Cost of Doing Doing

NothingNothingThe Risks of Staying IdleThe Risks of Staying IdleThe Risks of Staying IdleThe Risks of Staying Idle

Public Safety and our Public Safety and our InfrastructureInfrastructure

Public Safety and our Public Safety and our InfrastructureInfrastructure

•Ambulances and other life-saving vehicles will have to detour around closed bridges and roadways, leading to lost and potentially life-saving minutes.

•Locations seeing high numbers of crashes that could benefit from improvements such as cable median guide rail, rumble strips and intersection upgrades will take longer to be addressed.

•The transit services that many people, especially those with disabilities or seniors, rely on may be reduced or eliminated completely as transit systems make painful cuts to services. (Paratransit)

•The more than 150,000 children traveling to school every day on school buses will travel increasingly longer routes on poorer roadway conditions.

DID YOU DID YOU KNOW?KNOW?DID YOU DID YOU KNOW?KNOW?

In 2005, over 65,000 people crossed the C&D Canal. In

2030, that number is expected to almost double to 110,000.

(DelDOT, March 2009)

In 2005, over 65,000 people crossed the C&D Canal. In

2030, that number is expected to almost double to 110,000.

(DelDOT, March 2009)

Roadways and our Roadways and our InfrastructureInfrastructure

Roadways and our Roadways and our InfrastructureInfrastructure

•Travel conditions will worsen as the number of roadway miles in poor condition will continue to increase.

•Motorists will see increased costs to repair their vehicles as wear and tear from poor roadway conditions worsens.

•Motorists will also see increased costs from sitting in congestion, wasting up to a gallon of gas per week sitting in traffic or detouring around a closed bridge.

•Tourism for the State could potentially take a hit if congestion is not addressed.

FAST FACTSFAST FACTSFAST FACTSFAST FACTS•In 2010, traffic congestion resulted in an

annual total of 42 hours of delay per commuter, which is 75% more than the national average.

•Delaware motorists spend $168 million annually ($257 per motorist) in extra vehicle repairs and operating costs due to the inadequate quality of the infrastructure).

Delaware's Economy and our Delaware's Economy and our InfrastructureInfrastructure

Delaware's Economy and our Delaware's Economy and our InfrastructureInfrastructure•Commerce will suffer as increased truck traffic, commuter

traffic and the inability to increase highway capacity will make goods movement slower.

•Costs of goods will increase and industries, like agriculture, will see increased cuts into their bottom lines as they have to take longer trips around closed or posted bridges.

•Delaware will lose out on job creating commerce centers because of the lack of funding to increase highway access or bring all roadways into good condition.

•Prices for the goods and services we use every day will go up because of increased costs with system deterioration and longer transit times to the marketplace.

•Decreased project work will lead to the loss of jobs, however if investment is brought up to our needs we have the potential to gain more than 3,000 jobs.

THE SOLUTIONTHE SOLUTIONTHE SOLUTIONTHE SOLUTIONReal Ideas To Get Delawareans Back to Real Ideas To Get Delawareans Back to

WorkWorkReal Ideas To Get Delawareans Back to Real Ideas To Get Delawareans Back to

WorkWork

Our CoalitionOur CoalitionOur CoalitionOur Coalition

•American Council of Engineering Companies

•Laborers

•DSCC

•New Castle County Chamber of Commerce

•Committee of 100

By establishing a broad spectrum of support from across multiple industries, we have a collective voice when engaging and bringing stakeholders into our

corner.

By establishing a broad spectrum of support from across multiple industries, we have a collective voice when engaging and bringing stakeholders into our

corner.

•ABC

•DCA

•DEED

•Delaware Realtors

Coalition's Key Points Coalition's Key Points Coalition's Key Points Coalition's Key Points

•Economic Development - Jobs, Jobs, Jobs (retention and creation)

•Safer Roads (Less Accidents, Loss of Life)

•A failing infrastructure system leads to: higher maintenance costs, higher fuel costs related to congestion, aggressive driving, motor vehicle violations, longer commute, pollution,

The State Needs a The State Needs a ChampionChampion

The State Needs a The State Needs a ChampionChampion

The coalition needs to be aggressive when identifying, growing, maintaining and retaining our legislative and executive

support. Infrastructure investment must remain relevant and our champions must stay engaged and informed via support

from the coalition.

The coalition needs to be aggressive when identifying, growing, maintaining and retaining our legislative and executive

support. Infrastructure investment must remain relevant and our champions must stay engaged and informed via support

from the coalition.

Things to consider...Things to consider...Things to consider...Things to consider...•Gov. Markell's final term of office, first term

focused on education and social issues. Second term needs be substantive.

•The State needs to right the ship following the Fisker debacle and redirect it's focus on to real economic growth that is tied to infrastructure improvements.

•"If you build a modern and functional transportation infrastructure, businesses will come". (Virginia)

DID YOU DID YOU KNOW?KNOW?DID YOU DID YOU KNOW?KNOW?

Every $1 invested in highway construction generates up to $8 in real economic output.

Every $1 invested in highway construction generates up to $8 in real economic output.

On the Local Level: How bad infrastructure is bad

policy

•Roads in districts are falling apart.

•State maintained roads are inadequate.

•Consider how many calls/emails per week you get from constituents complaining about roads in disrepair.

•Lack of infrastructure equals a lack of jobs - companies that yield jobs will not open for business because roadways are in constant disrepair or are congested (avoiding road).

MessageMessageMessageMessageNow, more than ever, the State needs to partner with the engineering and trade

industries to deliver the needed improvements that will modernize our

infrastructure and fortify Delaware as an economic haven for prospective

corporations to create jobs and existing businesses to flourish.

SHORT: "Building More Jobs and a Better Delaware Through Infrastructure

Investment"

Now, more than ever, the State needs to partner with the engineering and trade

industries to deliver the needed improvements that will modernize our

infrastructure and fortify Delaware as an economic haven for prospective

corporations to create jobs and existing businesses to flourish.

SHORT: "Building More Jobs and a Better Delaware Through Infrastructure

Investment"

- Proposal to the Legislature -- Proposal to the Legislature -$200 Million Transportation Infrastructure $200 Million Transportation Infrastructure

Package Package that is wholistic, sustainable and long that is wholistic, sustainable and long term.term.

- Proposal to the Legislature -- Proposal to the Legislature -$200 Million Transportation Infrastructure $200 Million Transportation Infrastructure

Package Package that is wholistic, sustainable and long that is wholistic, sustainable and long term.term.

•Passage of HB 195 - Rep. Dennis E. Williams

•Implement package of TTFTF recommendations from 2011

•Community Transportation Fund Review

•Raise Gas Tax - has not been raised in 23 years and our surrounding states have passed gas tax proposals just this past year.

•Reform commercial vehicle discount on Delaware highways ($12m + for infrastructure)

•Escheat funding reform (2009 Bond Bill)

•Mileage based fee revenue enhancer

• Moving Operating Costs (DelDOT), out of TTF and into DelDOT operating budget where they belong.

FACTFACTFACTFACTAn additional $100 An additional $100 million dollars of million dollars of

investment, just in the investment, just in the Transportation Trust Transportation Trust Fund, would support Fund, would support

3,000 jobs.3,000 jobs.

CASE IN POINTCASE IN POINTCASE IN POINTCASE IN POINTHOW THE STATE ROUTE 26 INFRASTRUCTURE HOW THE STATE ROUTE 26 INFRASTRUCTURE PROJECT WILL PAVE THE WAY FOR A BETTER PROJECT WILL PAVE THE WAY FOR A BETTER

ECONOMYECONOMY

HOW THE STATE ROUTE 26 INFRASTRUCTURE HOW THE STATE ROUTE 26 INFRASTRUCTURE PROJECT WILL PAVE THE WAY FOR A BETTER PROJECT WILL PAVE THE WAY FOR A BETTER

ECONOMYECONOMY

State Route 26 (Oceanview)State Route 26 (Oceanview)*example of how a project helps boost a *example of how a project helps boost a

community*community*

State Route 26 (Oceanview)State Route 26 (Oceanview)*example of how a project helps boost a *example of how a project helps boost a

community*community*

•alleviated congestion

•improved safety

•boom to local economy

•longterm infrastructure improvement

•created hundreds of jobs

State Route 26State Route 26State Route 26State Route 26

• Many organizations in the State, including Delawareans for Environmental & Economic Development (DEED), Committee of 100, Delaware Contractors Association (DCA) and the Delaware Building and Construction Trades Council, share a growing concern regarding the weakness of the economic recovery in Delaware.

• Delaware's economic recovery is lagging the rest of the region due in no small part to the decimation of the construction and manufacturing sector(s) over the past several years. This is evident in both the public and private sector.

• Related professions such as architecture and engineering and construction related suppliers and manufacturers have all been severely hurt by the depth of the recession and Delaware’s slow recovery.

•  Recent Delaware Economic and Financial Advisory Council (DEFAC) forecasts for FY13, FY14 and particularly for FY15 only underscore the lack of an economic recovery in Delaware.

•  However there continues to be a strong demand for projects throughout the State for transportation, as well as all other areas of infrastructure, public buildings and education, both K-12 & Higher Education.

• Many organizations in the State, including Delawareans for Environmental & Economic Development (DEED), Committee of 100, Delaware Contractors Association (DCA) and the Delaware Building and Construction Trades Council, share a growing concern regarding the weakness of the economic recovery in Delaware.

• Delaware's economic recovery is lagging the rest of the region due in no small part to the decimation of the construction and manufacturing sector(s) over the past several years. This is evident in both the public and private sector.

• Related professions such as architecture and engineering and construction related suppliers and manufacturers have all been severely hurt by the depth of the recession and Delaware’s slow recovery.

•  Recent Delaware Economic and Financial Advisory Council (DEFAC) forecasts for FY13, FY14 and particularly for FY15 only underscore the lack of an economic recovery in Delaware.

•  However there continues to be a strong demand for projects throughout the State for transportation, as well as all other areas of infrastructure, public buildings and education, both K-12 & Higher Education.

NotesNotesNotesNotes