“My administration is doing everything it can to make Delaware the best state in the nation for starting a business and to create an economic climate where businesses can thrive across a range of industries.” Gov. Jack Markell March 4, 2009.

I know governors need to project confidence that something will be done. But if you look at that statement as it stands on its own, it really says little.

How does the second smallest state in this nation become the best place for a business to start and thrive?

You can hear a lot of things thrown around out there, in starburst fashion that if this or that were to occur, perhaps it may help one or more companies… Such ideas are often bantered about by those who haven’t a clue…

The answer is obvious…

The cost of doing business in Delaware needs to be more profitable than it is in other states, from start up to bankruptcy (should the need occur)..

That does not mean we need to give tax breaks… We may need to if other factors of doing business in Delaware are more expensive than competitive states… to soften the equation, but tax breaks do little for a corporation… Making money is what is more important…

But an effective plan would be one encompassing the entire realm of business needs from start to finish, and create an entire package that is cheaper than anything in surrounding states…

Ok, so let’s take an accounting of all of our assets….

Our state is run on business law. Our courts give businesses the right to make their own decisions regarding their business and are loathe to interfere. Over time this would cost any company considerable less in employee relations costs, than they would be hit with in either PA or NJ or MD, all of whose laws lean toward protecting labors right to earn a paycheck..

Four out of five of the East Coasts largest cities are withing two hours away by road. High fuel prices means that considerable less shipping costs would be tacked onto a Delawarean product as opposed to one from Iowa or North Dakota…

Delaware has one of the cheapest underutilized ports on the East Coast. A plant in Delaware would receive imported product with only the cost of a local trucking service… In New Castle County our widest point is 12 miles… The cost of importing any material form offshore, would literally be cheaper here than anywhere on both coasts.

Delaware’s land values are cheaper than those inside of Metropolitan Areas.. Constructions costs are lower too. Moving to Delaware would be much cheaper than settling in around New York, Philadelphia, Baltimore, or DC.

Energy costs are considerable. Having cheaper energy than any competitor would go a long way to help bring businesses to Delaware… Offshore wind provides local, clean energy at around 2.3 cents per kilowatt/hour. Coal burning plants cost between 6 and 8 cents for the same. Gas fired during peak demands, can cost 40 to 50 cents for the same. Having considerable savings from an offshore wind farm would guarantee lower energy costs for any business setting up in Delaware.

Finally quality of life provides the best incentive for any business to move to Delaware.. We are only two hours away from four major cities. Why be locked down in one city when you can have four? Sporting events, whether it’s the Capitals, Flyers, Red Devils, Redskins, Ravens, Eagles, Giants, Jets, Seventy Sixers, New Jersey Nets,… all have home games within a two hour drive… Try selling that in western Oklahoma. Art, concerts, music, special events, historical figures all play a prominent role in one’s entertainment value while living here. Not to mention we have a beach…. a trait shared by only 20 states…..

Those are our strong selling points. They come with the territory.

Secondly we need to approach those other concerns a businesses might have…

Regulation; This state need a refined bundle of regulations, stated simply and in book form which can easily be handed to a prospect who can then rest assured it won’t be changed… Consistency is the key to planning. A business needs to count not on more than just one administration to remain consistent. We need to do so before other states beat us to that.

Marketable Employees; This state needs to drop its graduation failure rate to zero. We don’t need multiple amenities, we need attention to core values: reading, writing, and arithmetic.
As a state our education department needs to interfere at the ninth grade level… where the failure cycle begins. In the past, we have focused on elementary. It works. But all that we invested gets thrown away when the enter the anarchy of our high schools. That needs to change. Tutoring on the ninth grade level, determines whether or not most of those in danger of failing, will pass or fail… If they don’t make it through the ninth grade, they usually don’t bother entering the eleventh. Fixing our low graduation rate can be impacted with minimal cost by pinpointing the ninth grade, drawing a line, and making sure all students get what it takes to cross over…..

Taxes: Any business will tell you that consistent costs are better than getting used to low costs that suddenly spike on you.. Our tax rate needs to be high enough so it will generate enough revenue over time to fund our state’s essential services… It does not have to be lower than other states in every area, but it has to be high enough to remain consistent… Fluctuations imposed by groveling legislators anxious to benefit a constituent, often creates havoc in planning out a budget… Will that cost rise after the next election? Who knows? Again, it’s stability that is the area of concern… Our budget needs some tax increase and business can not be exempt. But that increase needs to be done in a way so a business can not only plan on the next year, but also for the ten years after….

Open Government: No new business can prosper in an arena where old businesses hold all the cards… No business entrepreneurship can survive if he has to fight unfair competition in the form of government rules and regulations formed in secret alliances behind closed doors. If, there is to be any hope of many new businesses to set up shop in Delaware, it must pass, that the FOIA House Bill 1 move through both houses intact and be signed into to law this year….. Openness and the ability for all to see what government is doing, will elevate Delaware above its neighbors in creating a climate conducive to doing business in Delaware…

So that is the structure supporting what our governor Jack Markell announced on March 4, 2009.

Promises are cheap and without merit unless the underlying structure can be put in place. Some of that was laid down by our geography, our ancestors, and predecessors in the General Assembly… The rest will be up to us….

We need consistency.