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You should be irate every time you hear a rich person complain about his paying of taxes… “I pay so much taxes ….”  Immediately you should add “because you got all our money.” For that is exactly where it is…

For example, let’s take Ronald Reagan’s tax rate: 50%…. and compare to the Bush W rate of 35%…… Follow up with 1980 versus 2013… as short span of one third of a century….

Chart Courtesy of

Raw Data 1980 (Theoretically Averaged)
0-20%——$12,000     (Times X) 50% = $6000
21-40%—–$15,000     (Times X) 50% = $7500
41-60%—–$25,000    (Times X) 50% = $12,500
61-80%—–$30,000    (Times X) 50% = $15,000
81-100%—-$38,000    (Times X) 50% =   $19,000
{95-100%–$68,000   (TimesX) 50%    =  $34,000}

Total —————————————= $59,500…

Raw Data 2013  (Theoretically Averaged)
0-20%——$12,000    (Times X) 35%  = $4560
21-40%—–$26,000    (Times X) 35%  =,$9100
41-60%—–$50,000   (Times X) 35%  =,$19250
61-80%—–$76,000   (Times X) 35%  =,$26,600
81-100%—-$178,000  (Times X) 35%= $62,300
{95-100%—$317,000 (Times X) 35%= $110,950}

Total ——————————————$121,810…

(This exercise is theoretical. It is designed only to show the mathematical properties underlying our nation’s problems.  There are many other factors not included here which either promote or work against these results… So don’t get bogged down on these results not being real.. Those effects wash out and are not part of what we will show here.)

Below are the across the 33 year  plus-or-minus changes in the theoretical tax burden of each quintile.

0-20%——-$ (-1,440)


Now if you take the theoretical amount of today’s top income, and instead tax it at 50%, you get this figure… $158,500… That is what todays top people averaged IF rates stayed at Reagan’s level of many years ago (compared to $110,950)…  The difference from that and actual is $47,850…. which if you look at the bottom showing the difference from 80 to now, would cover all of the four lower quintiles contribution…  (-1440+ 1600+ 6750+ 11600= 22,570)

So the tax revenue which we need, and have lost, if fairness is to be an issue, must come from the top 1% first and then, and only then, after they have paid back what they’ve earned from less taxes first, then begin to think of raising taxes on the other 4 quintiles…

Unequivocal proof we need to raise taxes on the top 1% as soon as possible..  There are a lot of other reasons of course, but just math theory dictates that to grow America and stop its backwards slide, the top 1% need to pay more.  There is one obstacle … The Republican Party that thwarts any progress for the other 80% of us, just because they won’t budge on opening the door (increasing the top one percents’ tax rate) and let us pass through into prosperity again…

Furthermore:  this put a nail in the coffin for all those arguing “a flat rate”….

For those arguing a flat rate, obviously you can’t take any from the lowest level (its negative) which makes the flat rate argument completely moot because the whole idea of a flat rate is that it is exclusive. As soon as you start picking and choosing, what you are doing becomes progressive and it is not a flat rate anymore…  Throw that out completely.  You can’t tax negativity….

We, the 80%, through our misguided politicians in the 80’s, loaned the rich our money to get rich by.  Now, when we ask for our first installment payment, they say, no, it’s…. their money?  I don’t think so…..

Sometimes when old actors get up and perform, you laugh… as I did when I saw this….

Oh, my, goodness…. Too rich… add some water… or ice.

Before the cataclysmic Republican caused depression, back in 2009, he states: Delawareans earned an average $733 a week… Now, the average earns $709 dollars… AN ASTONISHING 3.8% !!!!! Astonishing? 3.8%? Really? It’s astonishing…..

I’m sure we can all tighten our belts for $24 dollars, especially if we are making $709…..

Who is this guy speaking? He is a Delaware businessman and politician… He was one of only a handful of state legislators to own and operate a family business. In 1994, his small Delaware printing company in Wilmington had only ten employees. . Since then, AGS has grown to over 50 employees and evolved into a high tech business… This person currently sits on the board of the State Chamber of Commerce……

So, Charlie Copeland, if you are seriously angry about business not paying their employees as much as they did before your party caused the recession,

Then give them a raise…..

The reason they are earning less, is because you and your association members, won’t give them a raise….. You, not Markell-Denn, are the problem? Give your employees raises and this issue goes away… Are you implying Markell-Denn should have mandated what you should pay your people? Ha, ha, ha, ha, ha… :)

Silly man… Trying to blame Markell and Denn for something of which only you have control….

Recently a study showing the damage the Bush Tax cuts did, emerged… It was offered to all major publications who refused to publish it. Hence is emerged through what has become one of the best news sources in America today… Al Jeezerah…

The author won a Pulitzer Prize in 2001… David Cay Johnston

The Bush tax cuts, touted as a harbinger of prosperity by the Republican Party, actually robbed each American taxpayer of $48,000 in pre-tax personal income during the twelve years of their existence, for a total of approximately $6.6 trillion dollars.

In other words, you do not have $48,000 you should have had… because of that party that does nothing… How much of a difference could that $48,000 have made to you? It would have been there too, but… sigh, well, you know, you can’t go back in time and give Al Gore the presidency….

“it would have been enough to pay off all the student loans in United States ($1.26 trillion), all the automobile loans ($892 billion) and all the credit card debt ($827 billion),” he noted. “After paying all that debt off and taking taxes into account, Americans still would have more than $2.4 trillion left in their pockets and bank accounts.” Per filer, that $2.4 trillion left would be a cool $17,454 dollars…!

What you CAN do is understand that as long as Republicans have enough people to block legislation anywhere, state, local, national, from changing this… It will continue. Republicans still, at this late date, only care about the top 1%…..(For example after fighting tooth and nail to keep $10 billion that was paid for from being used on our broken down bridges, the Republican House flipped and just passed a bill to add $267 billion dollars to the national debt in the form of a tax cut for the top 0.01% of taxpayers…. ) A $267 billion dollar tax cut for the elite of the top 1%, charged directly to the debt… Meaning your children for years will be paying back this debt for no other reason than make them even richer than they are now… But we can’t have our $10 billion to fix America’s worst bridges because that is too much debt…

These same people, Who, btw… received one whole third of all the accumulative wage increases from 2001 to 2012… a total of under 16,000 households…. roughly 16 city blocks in one city, somewhere in the entire expanse of America….

The rich got richer; the poor get poorer, and the Republicans get kookier…. So are you going to do something about it?

You can. Let everyone know you aren’t voting for anyone who still says we need to cut taxes… because it is your money they are taking.

Oh, can I borrow some of the $48,000, please?

What? You don’t have it?

The only thing you need to see is this…
Changes in Areas With Concentrated Poverty: 2000 to 2010

Poverty by County After Bill Clinton

Changes in Areas With Concentrated Poverty: 2000 to 2010

Poverty by County after George W. Bush

This is the damage tax cuts do… Worse than either war,  the Bush Tax Cuts plunged America backwards….   Next time someone says we need tax cuts because the economy is faltering, ask them how come there is more poverty after the Bush Tax Cuts than before?

Watch with glee as they try to wiggle off the hook…

Our conservative friends forgot; not all taxes are bad.  There are good taxes and bad taxes… Getting rid of the good to eliminate the bad, was bad, as you can plainly see…..


Ever wondered how much you pay for certain services?  I know Al Mascitti does.  He says so on his show.

Now he and you can find out how much you pay for defense atomic energy policies, or unemployment insurance, or NASA.  In keeping with Obama’s promise that you should know where your money goes, a relatively simple program which simply applies the percentage that each line item costs the Federal budget, to you tax form.

Just take your W4 and plug away.  Or use our tax form to get tax after deductions.  Either way, it only takes one minute, you can now personally know, how much you personally are paying for each and every category……


Dear State of Delaware Legislator:

A,  I voted for you to help make my life better instead of worse.

B.  I am sick and tired of you not taxing the wealthy more, and making me carry the burden…

C.  There should be no excuse for me paying any taxes when I am barely breaking even and my boss pays less or the same  percentage as me while doubling his income this past year….

So tell me Mr./Ms. Legislator?

Where is the legislation raising tax rates on those making a billion or more?

Where is the legislation raising tax rates on those making a hundred million or more?

Where is the legislation raising tax rates on those making ten million or more?

Where is the legislation raising tax rates on those making one million or more?

Where is the legislation raising tax rates even just pennies on those making over half a million or more?


We elected you to do a job.  So damn it.  Do it.  Stop cutting back on essential goods and services to the 99% of us, because you are too yellow and chicken to do what we elected you to do… Balance the budget on those who, with their eyes closed, could pay our entire state budget and never even know it (as long as their accountants didn’t tell them….)


Every single Delawarean…..

In 2011, 46.2 million people in the US were living in poverty and the nation’s official poverty rate was 15 percent, up from 14.3 percent in 2009, according to the US Census Bureau. That figure appears to be the highest number seen in the 52 years for which poverty estimates have been recorded…

The predominant face of the poor is white.

Economic insecurity among whites is said to be more common than is shown in the government’s poverty data, engulfing over 76 percent of white adults by the time they turn 60..

Economic  insecurity approaching 76%….. How does this end the middle class designation?

Let us review what is the middle class.  It is the class in the middle… Start and stop points and change depending on who want to show what, but for the most part, the middle class would have a center point around the 50% margin… Hence: middle class….

10%     20%     30%     40%     50%     60%     70%     80%     90%      


Sort of what you’d expect… the area above the poverty line and just below the rich……But based on current data now released from the Census Bureau, (and this is no secret to people in public schools) over 80% of America has been at or below poverty levels in its lifetime… It really doesn’t matter when.  You could be financially stable through your whole life and then get termed at age 60.  The effect is the same. You could face 50% age group unemployment right out of college and use odd jobs and part time jobs to stay alive. The effect is the same.  The mark today is that 80% face economic insecurity.  Can we just call that poor?  Isn’t that the definition of poor?  Someone who doesn’t have enough to be secure in today’s society?

Therefore if we take the middle of those from where the poor end at 80%, then we get a middle class graphic looking like this:

10%     20%     30%     40%     50%     60%     70%     80%     90%                                                                                                            XXX

This is the official version of today’s America rendered by the US Census bureau…. Times have changed…

Compare that to where it was under Bill Clinton in 1999 before Republicans took over….

10%     20%     30%     40%     50%     60%     70%     80%     90%     


No offense to my Republican friends but this (which sad to say is exactly what I predicted in 2000), is what you get when you don’t tax progressively. We now have only 2 classes; The 1%  and the 99%.

The fix? Is to tax the top 1% who can well afford even a purely theoretical 100% taxation without hardship, and use that money for jobs…. Just jobs. More government contracts.  This is America’s quick answer… and it must be decided in this election 2014 that we will take it.  Against all odds, we need both chambers in Democrats’ hands., not for Democrats, but for America. It’s the only way is to defeat Republicanism… We are not talking individual candidates.  We are talking about a philosophy that stresses the lazy poor 80% must continue to suffer even more to pay for the one percent’s excesses, and not as it should be, … the other way around…




Synopsis:  This bill removes the per-student funding to all Charter schools and allows them to be funded in the same manner as the Vocational Technical School Districts.

Section 1. Amend §509-518 of Title 14 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strikethrough as follows:

(For an easier read of the new law, please jump to a cleaned up code version (without the deletions) which is a much easier read.)

§ 509 School financing.

(a) Charter schools shall be eligible for public funds under procedures established by this section. Notwithstanding that this Code may establish procedures for the funding of a public school choice program and that such program may include charter schools among those schools which students may choose,

(b) A charter school shall receive a payment with respect to each of its students equal to:  in the exact same manner as do the Vocational Technical School Districts within Delaware

(1) From the State on or before November 30, the entire yearly funding equivalent to ofpublic charter school‘s Division I staffing, including fractional funding of partial units, excluding  funding for a Superintendent, Division II– All Other Costs and Energy funding, minor capital improvements and school building maintenance funding, will be  generated by the annual student unit count conducted on September 30 of each year in accordance with Department of Education regulations. by the General Assembly as a line item in its previous fiscal year’s budget, ending June 30th of that same year.  Minor capital improvements shall continue to be funded in the same manner as the Vocational Technical School Districts. In the case of Division III — Equalization, a charter school shall not receive from the State an any amount that is determined by the weighting of the Division III per unit values that would have been generated by its students had they been counted in and that amount, shall remains and stay within each student’s  their district of residence. In addition A charter school shall not receive a prorated portion of any other funds appropriated to the Department of Education that are is intended to be allocated on a student, employee or school state share. For accounting purposes only and not for the purposes of calculating such funding, shall each charter school student shall be counted in a separately reported unit count of at the charter school, which makes note of that child’s district of residence,  and though not physically counted for any purposes in the student’s district of residence, that money which in that child’s district was originally allocated per that student must now remain in the designated home district of that child’s residence. For any other partially funded unit generated at a charter school, the charter school is free to negotiate the use of such unit with the chartering district, and other public school districts, in order to purchase central custodial, administrative, clerical, direct teaching or educationally related services. If such an agreement is not negotiated, a payment based on the average State cost per unit shall be payable to both the charter school and the district issuing the charter, provided that the sum of both fractions justifies an additional unit.  The State shall advance 75% of the anticipated funding pursuant to this subsection at the beginning of each fiscal year, provided that the charter school has provided the Department of Education with a preliminary roster of its students on or before May 1 of such year, and does not maintain the status of formal review or probation. The status of formal review or probation shall prompt the Department of Education to advance a level of funding appropriate to pending administrative action. A final roster shall be due September 30. Notwithstanding the above, a charter school in its first year of operation shall receive 50% of the anticipated funding pursuant to this subsection at the beginning of the fiscal year, provided that the charter school has provided the Department of Education with a preliminary roster of its students on or before May 1 of such year. The charter school shall receive an additional 25% of the funding due pursuant to this subsection on October 1 of its first year in operation and shall receive the remaining 25% on February 1 of its first year in operation, provided that the school has completed and posted the required standardized financial report forms and the Department has reviewed those forms and determined that the school’s finances will not at that time lead the Department to submit the school for formal review pursuant to § 515 of this title. A determination that the school will be submitted for formal review shall prompt the Department of Education to advance a level of funding appropriate to pending administrative action. The percentage of funding to be provided to charter schools on July 1 and October 1 pursuant to the above may be increased in the Secretary’s discretion.

(2) From the school districts in which its students reside on or before November 30 of each year, the local cost per student (regular or special education, as the case may be), net of transportation expenses provided for pursuant to § 508 of this title. The school districts in which its students reside shall advance at least 35% of the anticipated funding pursuant to this subsection at the beginning of each fiscal year provided that the charter school has provided the school districts of residence with a preliminary roster of its students on or before May 1 of such year. This advance may be paid from Division III — Equalization funds if the district’s prior fiscal year current expense local funds balance was 20% or less pursuant to § 1507 of this title. A final roster shall be due September 30. In the event of the failure of a school district to make timely payments to a charter school as required in this paragraph, the Department of Education shall have the authority to direct transfer of such funds from future State funding allocations after the school district receives reasonable notice and an opportunity to be heard, as set forth in the rules and regulations established by the Department.

(c) If a parent or legal guardian of a student enrolled outside the district pursuant to this chapter moves during the school year to a district different from the district in which that parent’s or legal guardian’s child resided at the time of the annual unit count, the child’s first district of residence shall continue to be responsible  to receive any portions of payments allotted for that child  to the charter school for the balance of the school year pursuant to paragraph (b)(2) of this section. The child’s new district of residence shall be responsible the recipient  for all such payments revenue during succeeding years.

(d) The Department of Education shall annually calculate the local cost per student expended by each school district for each type of student for the year immediately preceding based on the formula set forth in subsection (e) of this section, adjusted by a factor necessary to fund the charter school on a basis reasonably equivalent to the current year local cost per student, which factor shall be established  and shall give that total cost along with the estimated enrollment of each Charter School to the General Assembly’s Joint Budget Committee before the completion of  the annual Appropriations Act. The Department shall annually certify each district’s local cost per student expenditure, as if all Charter students still resided within that district by September 1st of each year.

(e)  Local cost per student as used in this section shall be calculated as follows:

Total local Operating Expenditure in Preceding Fiscal Year

Total Division I Units minus

Special School Units minus

Vocational Deduct plus

Vocational Units

Number of Pupils or Pupil Minutes per Unit


Total local Operating = Sum of all expenditures

Expenditure in from local sources minus

Preceding FY local expenditures fortuition minus

local expenditures for debt service minus

local expenditures for Minor Capital Improvement

Division I Units for each= Division I Units certified by District or Special School the State Board of Education as of September 30 of each year…

Pupils or Pupil Minutes =

Number of Pupils or Pupil per Unit Minutes required for one
particular unit of funding as specified in §1703 of this Title

(f) For any student, who because of educational need requires services that are appropriately financed pursuant to the provisions of Chapter 6 of this title, either at the outset or subsequent to a decision to enroll in a charter school, the student’s district of residence shall no longer continue to remain financially responsible for such student and the charter school shall receive from such district request from the Department of Education, a payment determined in accordance with the provisions of Chapter 6 of this title, that would have been allotted to the Department of Education by the General Assembly for this purpose,  Beginning fiscal year 2015, the General Assembly will provide a charter fund of $1 million dollars to the Department of Education to be used for assisting charter students requiring additional resources to meet their educational needs.

(g) Any payment received by a charter school from the General Assembly pursuant to this section may be used for current operations, minor capital improvements, debt service payments or tuition payments.

(h) The Department of Education, in consultation with the Office of Management and Budget, shall annually publish a list of vacant and unused buildings and vacant and unused portions of buildings that are owned by this State or by school districts in this State and that may be suitable for the operation of a charter school. The Department of Education, in consultation with the Office of Management and Budget, shall make the list available to applicants for charter schools and to existing charter schools. The list shall include the address of each building, a short description of the building and the name of the owner of the building.

(i) In return for the receipt by a charter school of any special allocated  state funds allocated directly to the school for extra time, professional development, driver education or disciplinary programs, the school shall provide such programs.

(j) If after September 30  April 15th a pupil ceases to be enrolled in a charter school and is thereafter enrolled in a reorganized school district for the balance of the fiscal year, nothing contained in this section shall prevent a charter school which has received any funding for the student and the school district in which the student is subsequently enrolled from entering into an agreement providing for the proration of student funding between or among the charter school and the school district in which the student is subsequently enrolled. Funding in any subsequent fiscal year shall be as otherwise provided in this Code.   no funding transfer shall take place, since that child’s assessment is already designated towards his district of residence.

(k) A charter school shall display on its website as do all public schools, all standardized financial report forms for the current fiscal year and the final monthly standardized financial report forms for each previous fiscal year of operation. Charter schools that are required to file Internal Revenue Service Form 990 shall post the current and prior year Form 990 on the website as well.

(l) Charter schools shall have the same access to conduit bond financing as any other nonprofit organization, and no state or local government unit may impose any condition or restriction on a charter school’s approval solely because the applicant is a public charter school. It is the further intent that a charter school shall apply for conduit funding to issuers within the State unless more favorable terms may be found elsewhere.all Vocational Technical School Districts within Delaware

(m) The Department of Education shall administer a performance fund for charter schools, to be known as the “Charter School Performance Fund.” The Department of Education shall establish threshold eligibility requirements for applicants desiring to apply for funding, which shall include but not be limited to a proven track record of success, as measured by a performance framework established by the charter school’s authorizer or comparable measures as defined by the Department. The Department of Education shall also establish criteria to evaluate applications for funding, which shall include but not be limited to the availability of supplemental funding from nonstate sources at a ratio to be determined by the Department. The Department of Education shall prioritize those applications from applicants that have:

(1) Developed high-quality plans for start-up or expansion; or

(2) Serve high-need students, as defined by the Department.

The Fund shall be subject to appropriation and shall not exceed $5 million annually.

70 Del. Laws, c. 179, § 270 Del. Laws, c. 186, § 171 Del. Laws, c. 132, §§ 360, 36171 Del. Laws, c. 180, § 2671 Del. Laws, c. 354, § 38372 Del. Laws, c. 395, § 35173 Del. Laws, c. 164, §§ 9, 1075 Del. Laws, c. 88, § 16(2)75 Del. Laws, c. 89, § 42578 Del. Laws, c. 77, § 33(b)78 Del. Laws, c. 187, §§ 2, 379 Del. Laws, c. 51, §§ 3, 4.;

§ 510 State assistance.

(a) The Department of Education shall distribute information announcing the availability of the charter school program, explaining the powers and responsibilities of a charter school contained in this chapter, and describing the application process to each school district and public post-secondary educational institution, and through press releases to each major newspaper in the State.

(b) The Department of Education shall provide technical assistance to potential charter school applicants upon request.

(c) The Department of Education shall provide technical and other forms of assistance to charter schools on the same basis as to school districts.

(d) The Department of Education shall, in concert with the approving authority and the applicant, apply for available federal or foundation grants providing funding for the planning and start-up of charter schools and the Department of Education shall administer such funds as may be appropriated by the General Assembly for the purpose of assisting in the planning and start-up of charter schools.

70 Del. Laws, c. 179, § 271 Del. Laws, c. 180, § 27.;

§ 511 Approval procedure.

(a) An approved charter school application, together with such conditions imposed pursuant to subsection (l) of this section, shall be the basis for a charter granted to the charter school by the approving authority pursuant to this chapter and shall be governed by the terms of this chapter.  Charters must first receive a majority approval from the local district’s school board in whose district they are located. Upon approval of a charter school application by that district, the Department of Education shall present applicants seeking a charter from the state with a charter contract (“Charter Contract”) that clearly defines the respective roles, powers, and responsibilities of the school and the approving authority and incorporates the provisions of the performance agreement entered into between the charter school and its approving authority pursuant to CDR 14-200-275. Other approving authorities may choose to present applications they approve with such a Charter Contract. Where Once a Charter Contract is utilized has been approved by the Department, both the school Charter School and the approving authority that school’s local school district shall execute the Department of Education’s Charter Contract. Notwithstanding anything in this chapter to the contrary, the initial term of a newly approved charter shall expire at the end of the fifth  third fiscal year following the fiscal year in which the charter was initially approved, and any subsequent charter renewal term shall expire at the end of each successive fifth third fiscal year thereafter unless extended pursuant to § 514A(b) of this title. If an approved charter is modified to delay the initial opening of the school, then the expiration date of the initial term of the charter shall be adjusted accordingly.

(b)(1) Charters shall be modified by the same procedure and based on the same criteria as they are approved. When the approving authority is the Department of Education  local school district, minor modifications to a charter that are requested by the charter school only may be approved by the Secretary  District Superintendent subject to rules and regulations established by the local district’s Board of Education with the approval of the State Board. Modifications associated with the provision of student transportation services as a result of changes to the Annual Appropriations Act to § 508 of this title shall be considered a minor modification.

(2) A request for modification to increase a charter school’s total authorized enrollment by more than 15% shall be considered a major modification, regardless of whether the additional students will attend school at the current location or at a separate location.

(3) In addition to meeting the approval criteria established in § 512 of this title, an authorizer considering an application for a new charter school or for a modification as described in paragraph (b)(2) of this section in which the increased enrollment will occur less than 18 months from the date of application (an “expansion”), shall also consider the potential positive and negative impact of the proposed new school or expansion on the schools and the community from which the charter school’s new students will likely be drawn. In reviewing the impact, the authorizer shall consider all information furnished to it during the new charter school application process and may exercise its reasonable discretion in determining whether the proposed new school or expansion is contrary to the best interests of the community to be served, including both those students likely to attend the charter school and those students likely to attend traditional public schools in the community.  Local impact of the charter shall be considered during the initial application process before that district’s Board of Education, which oversees the locality in which that charter wishes to locate.

(4) Information regarding impact shall be considered in conjunction with the factors in § 512 of this title but shall not alone provide the basis for disapproval of an application for a new charter application or an expansion. The information regarding impact may, however, be among the bases for disapproval of an application or expansion if at least 1 criteria in § 512 of this title is also deemed not satisfied by the authorizer. The information regarding impact may, by itself or in combination with other factors, form the basis for conditions being placed on the approval.

(c) Charter school applications shall be submitted to a local school board or the Department for approval as an approving authority. Whenever a charter school seeks a charter from the Department as approving authority, such approval shall require the assent of both the Secretary and the State Board, as shall any action pursuant to §§ 515 and 516 of this title. The approving authority shall be responsible for approval of the charter school pursuant to this section and for continuing oversight of each charter school it approves.

(d) The Department shall make an initial secondary review of all charter school applications it receives forwarded to it by the local district Superintendents, in order to assess the completeness and viability of each such application based on the application submission criteria established in this title. Upon a finding that an application does not warrant a full review, the Department shall notify the applicant in writing of the deficiency or deficiencies and the application shall receive no further consideration. Each local district that is asked by an applicant to serve as an approving authority may, in its discretion, undertake such an initial sufficiency review and make such an initial sufficiency determination.

(e) Applicants seeking a charter approval from the Department that have submitted an application deemed by both the local distict and Department sufficient to receive a full review, shall be offered an opportunity for an interview in support of the application. Such interviews will allow the Department to assess applicant capacity, allow it to clarify information provided in the application, and gather additional information. The information gained in the interview process may be among the factors considered by the approving authority in approving or denying an application.

(f) Potential charter school applicants may engage in discussions with a potential approving authority before submitting an application for approval to establish a charter school.

(g)(1) Except as noted in paragraph (g)(2) of this section, new charter school applications shall be submitted to an their local district approving authority between November 1 and December 31 for schools to be established and prepared to admit students on or after the second August 1 thereafter.

(2) Applications by a highly successful charter school operator as described in subsection (p) of this section shall be submitted to an approving authority between November 1 and December 31 for schools to be established and prepared to admit students on or after the August 1 thereafter. The application submission dates in this subsection may be amended by agreement of the authorizer and the applicant if necessary to allow the applicant to serve students who would otherwise be displaced due to the closure of an existing charter school.

(3) Applications to renew a charter shall be submitted to the local approving authority on or before September 1 of the year immediately preceding the calendar year in which the school’s current charter term will expire., except that all applications to renew a charter that expires on or before December 31, 2012, shall be submitted to the approving authority on or before October 15, 2011.

(4) Charter school applications which propose the conversion of an existing public school, or a part thereof to charter school status must be submitted to an a local approving authority on or before October 30 if the application proposes that the newly converted charter school is to be established and prepared to admit students for the next ensuing school year.

(5) If the date for submitting an application or commencing the school’s instructional program shall fall on a weekend or state holiday, the time for such shall be continued to the first working day thereafter.

(h) Any local school board may limit the number of new charter school applications it will consider in any year or the number of charters it will grant, but within 20 working days after December 31 must hold a public meeting to decide whether or not to consider it. A local school board shall not be required to accept any new charter school applications for a charter school unless, by September 1 of each year the school board shall affirmatively vote to accept such applications.

(i) If an the local approving authority decides to consider a charter application, the local approving authority must rule on whether to approve the application at a public meeting within 90 working days after December 31.

(j) Within 5 days of deciding to consider an application, the local  approving authority shall form an accountability committee to review the charter school application. The accountability committee’s report to the local school board shall address the approval criteria set forth in § 512 of this title. The committee shall meet with the applicant in the course of its investigation and provide the applicant the opportunity to review and comment on the committee’s report 15 days before it is issued to the approving authority. The committee’s final report shall be provided to the applicant and be made available to the public.

(k) After giving 15 days public notice, the local approving authority shall hold public hearings to assist in its decision whether to approve a charter application. At least 1 such hearing shall be held prior to the issuance of the accountability committee’s final report on that application. The approving authority shall, in advance of the 15-day public notice period, post any and all charter applications under consideration on a public website maintained by the approving authority, and during this public notice period shall accept electronically submitted and written comments from the public.

(l) Subject to any limitations imposed by the local approving authority pursuant to subsection (h) of this section, if the application is found by the approving authority of the State Board to meet the criteria set forth in § 512 and complying with the approval process in § 511 of this title, it shall approve the application. The State Board’s approving authority may approve an application subject to such conditions as the approving authority, in its sole discretion, may deem appropriate to ensure the applicant’s continuing compliance with the approval criteria.

(m) If an application is made to the Department or a local board as an approving authority and the charter application is not approved, such decision shall be final and not subject to judicial review.

(n) All applications for a charter shall contain an affirmative representation by the applicant that no later than June 15 immediately preceding the authorized opening date of the school, the applicant shall secure a certificate of occupancy, either temporary or final, for the premises in which the school is to be located, provided that any temporary certificate of occupancy must permit occupancy at the premises by school staff and students for school purposes. If the charter is approved and the charter holder shall subsequently fail to obtain the necessary certificate of occupancy as required by this section, the opening of the school shall be delayed by 1 year from the date previously authorized by the approving authority and the charter shall be placed on probation subject to the terms and conditions imposed by the Department of Education with the consent of the State Board of Education. No waivers are available for this requirement.

(o) A local school board that approves an application for a charter school may do so only on the condition that the charter school is located in and provides all educational and related services, with the exception of transportation services and other K-12 noninstructional services and activities, within the boundaries of the approving local school board’s district lines. Once approved, the charter school may not subsequently change its location from the school district specified in its originally approved charter.

(p) ”Highly successful charter school operator” means an entity that currently operates or whose principals currently operate 1 or more highly successful charter schools showing sustained high levels of student growth and achievement and sustained fiscal stewardship, as further defined by Department regulation. Notwithstanding the provisions of this chapter, for purposes of this definition the phrase “charter school” shall include public schools operated under a charter regardless of whether the schools are located or organized in Delaware. A highly successful charter school operator may be authorized to operate a charter school in the timeframe provided by paragraph (g)(2) of this section provided that the application is submitted for the purpose of operating a charter school at the site of and serving students currently attending a charter school whose charter has been revoked, has not been renewed, or whose charter is on formal review and whose board has agreed to abandon their charter.

(q) The charter school application shall include a disclosure of any ownership or financial interest in the charter school, including but not limited to the building and real property to be used in the operation of the charter school, by the charter school founders and the board of directors of the proposed charter school. If the building and real property to be used in operation of the charter school are not known at the time of application, disclosures pertaining to those interests shall be made once the building and real property to be used in operation of the charter school become known. In addition, the board of directors of the charter school shall have a continuing duty to disclose such interests to the approving authority pursuant to this chapter during the terms of any charter. The charter school and the Department shall promptly disclose the information required by this subsection to any member of the public upon request.

(r) Charter school board members and founders shall be required to complete the criminal background checks in the same manner as persons seeking employment with a public school pursuant to § 8571(a) of Title 11. In addition, the authorizer shall complete a check of the Child Protection Registry established by § 921 of Title 16 for charter school founders and board members. The results of said background and Child Protection Registry checks shall be provided to the authorizer for review as part of the application process and on an ongoing basis if new board members are seated or current board members are convicted of a crime or placed on the Child Protection Registry. Any person convicted of a felony offense or of any crime against a child in this State or any other jurisdiction shall not be permitted to serve as a founder or member of a charter school board of directors. No individual shall be permitted to serve as a charter school founder or board member if the individual would not be permitted to be employed in a public school pursuant to § 8563 of Title 11 regarding the Child Protection Registry. Other crimes may be considered disqualifying, in the discretion of the authorizer. The State Bureau of Identification may release any subsequent criminal history to the authorizer. Individuals currently serving as board members of a charter school must complete a criminal background check and the Department shall complete a Child Protection Registry check for such members on or before February 1, 2012.

(s) The founder or board member shall be provided with a copy of all information forwarded to the authorizer pursuant to subsection (r) of this section. Information obtained under subsection (r) of this section is confidential and may only be disclosed to the chief officer and 1 additional person in each authorizing body.

(t) Costs associated with obtaining criminal history information and child protection registry checks shall be paid by the applicant.

70 Del. Laws, c. 179, § 270 Del. Laws, c. 425, § 34671 Del. Laws, c. 132, §§ 357-359, 371, 37271 Del. Laws, c. 180, § 2872 Del. Laws, c. 118, § 372 Del. Laws, c. 473, § 173 Del. Laws, c. 164, §§ 11-1473 Del. Laws, c. 313, §§ 1, 874 Del. Laws, c. 360, §§ 2, 3, 675 Del. Laws, c. 112, § 176 Del. Laws, c. 79, § 14076 Del. Laws, c. 280, § 39578 Del. Laws, c. 187, §§ 4-779 Del. Laws, c. 51, § 5.;

§ 512 Approval criteria.

Subject to the process prescribed in § 511 of this title, charter school applications shall be in the form established by the local approving authority and shall be approved if, after the exercise of due diligence and good faith, the local approving authority finds that the proposed charter demonstrates that:

(1) The individuals and entities submitting the application are experienced and qualified to start and operate a charter school, and to implement the school’s proposed educational program. Certified teachers, parents and members of the community in which the school is to be located must be involved in the development of the proposed charter school. At the time at which the school commences its instructional program and at all times thereafter, the board of directors must include a teacher from at least 1 of the charter schools operated by the board and at least 1 parent of a student enrolled in a charter school operated by the board;

(2) The chosen form of organization, identified in the articles of incorporation and by-laws, or the membership agreement, conforms with the Delaware General Corporation Law;

(3) The mission statement, goals and educational objectives are consistent with the description of legislative intent set forth in § 501 of this title and the restrictions on charter school operations set forth in § 506 in this title;

(4) The school has set goals for student performance and will utilize satisfactory indicators not limited exclusively to state tests, to determine whether its students meet or exceed such goals and the academic standards set by the State. The indicators shall include the assessments required for students in other public schools, although the charter school may adopt additional performance standards or assessment requirements, and shall include timelines for the achievement of student performance goals and the assessment of such performance;

(5) The school proposes a satisfactory plan for evaluating student performance and procedures for taking corrective action in the event that student performance at the charter school falls below such standards which are reasonably likely to succeed;

(6) The school’s educational program, including curriculum and instructional strategies, has the potential to improve student performance; and must be aligned to meet the Delaware Content Standards and state program requirements, and in the case of a charter high school, state graduation requirements. High school programs must provide driver education. The educational program at all charter schools must include the provision by the school of extra instructional time for at-risk students, summer school and other services required to be provided by school districts pursuant to the provisions of § 153 of this title. A previously approved charter school may continue to operate in compliance with the terms of its current approval, but its charter shall not be renewed unless the school shall submit an application for renewal in full compliance with the requirements of this subsection;

(7) The school’s educational program sets forth appropriate strategies to be employed to accommodate the needs of at-risk students and those needing special education services;

(8) The plan for the school is economically viable, based on a review of the school’s proposed budget of projected revenues and expenditures for the first 3 years, the plan for starting the school, and the major contracts planned for equipment and services, leases, improvements, purchases of real property and insurance;

(9) The school’s financial and administrative operations meet or exceed the same standards, procedures and requirements as a school district. If a charter school proposes to operate outside the State’s pension and/or benefits systems, a specific memorandum of understanding shall be developed and executed by the charter school, the approving authority, the Director of the Office of Management and Budget, the Controller General and the Secretary of Finance to assure that the State’s fiduciary duties and interests in the proper use of appropriated funds and as a benefits and pension trustee are fulfilled and protected, the State’s financial reporting requirements are satisfied, and the interests of charter school employees are protected. All charter schools shall operate within the Delaware Financial Management System (DFMS) and be subject to all of the same policies and procedures which govern other agencies operating within such system, except that any charter school previously approved to operate outside of the DFMS may continue to so operate subject to the terms of its memorandum of understanding until such time as the school’s charter is renewed pursuant to this chapter;

(10) The assessment of the school’s potential legal liability, and the types and limits of insurance coverage the school plans to obtain, are adequate;

(11) The procedures the school plans to follow to discipline students and ensure its students’ adherence to school attendance requirements comply with state and federal law;

(12) The procedures the school plans to follow to assure the health and safety of students, employees and guests of the school while they are on school property are adequate and that the charter school will comply with applicable provisions of local, state and federal law, including the provisions of Chapter 85 of Title 11;

(13) The school shall have a satisfactory plan for timely transferring student data and records to the Department of Education;

(14) The school’s board of directors shall annually certify to the Department, on a form to be provided by the Department, that prior to the payment of any fees or other sums to any management company employed by the board, the board will insure that sufficient revenues of the school are devoted to adequately support the school’s proposed educational program. Such form of certification may require documentation of all actual or proposed expenditures by the school. Failure to provide sufficient funds to adequately support the school’s proposed education program shall be grounds for revocation of the school’s charter.

(15) The school shall have a satisfactory plan to ensure the effectiveness of its board of trustees, including governance trainings conducted for any new board members and at a minimum of once every 3 years; and

(16) The school shall have a satisfactory plan for procedures it will follow in the case of the closure or dissolution of the school, including a plan to set aside sufficient funds to cover the salaries owed to those employees who are paid over a 12-month period. For a new applicant granted under this chapter, the application shall include a reasonable plan to establish sufficient available balances pursuant to § 516(1) of this title.

70 Del. Laws, c. 179, § 271 Del. Laws, c. 180, § 2971 Del. Laws, c. 354, § 38673 Del. Laws, c. 164, §§ 15-2173 Del. Laws, c. 313, §§ 9, 1075 Del. Laws, c. 88, § 21(7)78 Del. Laws, c. 187, § 879 Del. Laws, c. 51, § 6.;

§ 513 Reporting and oversight.

(a) On or before December 1, each charter school not seeking renewal of its charter shall produce an annual report for the school year ending the previous June, which shall:

(1) Discuss the school’s progress in meeting overall student performance goals and standards;

(2) Discuss the innovation occurring at the charter school, including but not limited to the areas of curriculum development, instruction, student culture and discipline, community and parental involvement, teacher and staff development, school operations and management, and extracurricular and after-school programming; and

(3) Contain a financial statement setting forth by appropriate categories the school’s revenues and expenditures and assets and liabilities.

Each charter school seeking renewal of its charter shall produce an annual report on or before September 30. The approving authority may, in its discretion and for good cause shown, elect to accept an annual report submitted subsequent to this deadline. To ensure that such reports provide parents and approving authorities with clear and comparable information about the performance of charter schools, the Department of Education shall prescribe a uniform format for such reports, which may be supplemented by requirements set by the approving authority for schools it has chartered. The charter school shall contract to have an audit of the business and financial transactions, records, and accounts after July 1 for the prior fiscal year. The results of the audit shall be shared with the Department of Education by October 1. A charter school shall display on its website the annual report including financial statement and audit required by this subsection.

(b) The annual report shall be submitted to the approving authority, the Department and the State Board. Employees of the school and parents of students attending the school shall receive a copy free of charge, upon request. The reports shall be public records pursuant to Chapter 100 of Title 29.

(c) The Department of Education, the State Board, and the approving authority may conduct financial, programmatic, or compliance audits of a charter school. In cooperation with the Department, the approving authority shall conduct such audits no less often than every 3 years. The State Auditor shall conduct an audit of all charter school funds annually on the same basis as applied to regular school districts.

(d) The Department of Education shall notify the superintendents of all reorganized and vocational-technical school districts of receipt of new charter school applications within 30 days of the close of the application deadline. The Department of Education shall also notify the superintendent of a reorganized school district of any applications for a major charter modification submitted by a charter school with a facility located within their district.

(e) Local school boards shall notify the superintendents of all reorganized and vocational-technical school districts of receipt of new charter school applications within 30 days of the close of the application deadline.

70 Del. Laws, c. 179, § 271 Del. Laws, c. 180, § 3073 Del. Laws, c. 313, §§ 4, 1278 Del. Laws, c. 187, § 9;79 Del. Laws, c. 51, § 779 Del. Laws, c. 128, § 2.;

§ 514 State reports on the charter school program.

Annually, the Department shall prepare a report for the Governor, the General Assembly, and the State Board of Education on the success or failure of charter schools and propose changes in state law necessary to improve or change the charter school program. Such report shall contain a section comparing the per student expenditures of charter schools, considering all sources of such expenditures, with those of other public schools. Such report shall also contain:

(1) The Secretary of Education’s analysis of, recommendations relating to, and proposed changes relating to Delaware education laws, in light of the content of annual reports submitted pursuant to § 513 of this title; and

(2) The Secretary’s assessment of specific opportunities and barriers relating to the implementation of charter schools’ innovations in the broader Delaware public education school system.

70 Del. Laws, c. 179, § 271 Del. Laws, c. 180, § 3179 Del. Laws, c. 128, § 2.;

§ 514A Renewals and nonrenewals.

(a) Four years after a charter school has commenced its instructional program pursuant to this chapter and not later than every 5 years thereafter, the approving authority shall, upon notice to the charter school, review the performance of the charter school to determine its compliance with its charter and its satisfaction of the criteria set forth in this title for the purposes of renewal or nonrenewal.

(b) A charter school may be renewed for successive 5-year terms of duration. An approving authority may grant renewal with specific conditions for necessary improvements to a charter school. Where a charter school has demonstrated an outstanding record of performance, an approving authority may grant it a renewal term of 10 years. Any charter school receiving such an extended renewal term shall, at the midpoint of the 10-year charter, be subject to an annual performance and program evaluation that includes academic, financial and operations data that looks back to all of the years of the charter up to that point. If, upon this evaluation, the approving authority determines that the charter school’s level of performance is deficient by renewal standards, the approving authority may initiate the formal renewal and nonrenewal process set forth below.

(c) No later than April 30, the approving authority shall issue a charter school renewal report and charter renewal application guidance to any charter school whose charter will expire the following year. The renewal report shall summarize the charter school’s performance record to date, based on the data required by 79 Del. Laws, c. 51 and the charter contract, and shall provide notice of any weaknesses or concerns perceived by the approving authority concerning the charter school that may jeopardize its position in seeking renewal if not timely rectified. The charter school shall have 10 working days to respond to the renewal report and submit any corrections or clarifications for the report.

(d) The renewal process shall, at a minimum, provide an opportunity for the charter school to:

(1) Present additional evidence, beyond the data contained in the renewal report, supporting its case for charter renewal;

(2) Describe improvements undertaken or planned for the school; and

(3) Detail the school’s plans for the next charter term.

(e) The renewal application guidance shall include the criteria that will guide the approving authority’s renewal decisions. Renewal determinations by the Department of Education shall be based on its performance framework, the terms set forth in the Charter Contract, and shall take account of the school’s performance agreement with the approving authority, consistent with CDR 14-200-275, and with 79 Del. Laws, c. 51. Other approving authorities may choose to adopt the criteria utilized by the Department of Education. Each approving authority shall develop a rubric based on its criteria for evaluating renewal applications and shall provide this rubric to applicants as part of the renewal application guidance. The approving authority shall publish the renewal application guidance on its website and make it available in written form upon request.

(f) No later than September 30, the governing board of a charter school seeking renewal shall submit a renewal application to the approving authority pursuant to the renewal application guidance issued by the approving authority. The approving authority shall rule by resolution on the renewal application no later than 30 working days after the filing of the renewal application.

(g) In making charter renewal decisions, every approving authority shall:

(1) Ground its decisions in evidence of the school’s performance over the term of the charter contract in accordance with the performance agreement set forth in the charter contract;

(2) Ensure that data used in making renewal decisions are available to the school and the public; and

(3) Provide a public report summarizing the evidence basis for each decision.

79 Del. Laws, c. 51, § 8.;

§ 515 Oversight and revocation process.

(a) The approving authority shall be responsible for oversight of the charter schools it approves.

(b) In addition to the review required by § 514A(a) of this title, the approving authority may notify a charter school of potential violations of its charter and submit the charter to formal review to determine whether the charter school is violating the terms of its charter and whether to order remedial measures pursuant to subsection (f) of this section.

(c) The approving authority shall issue its decision within 90 working days of giving the charter school notice pursuant to this subsection (c). An accountability committee appointed by the approving authority shall conduct the initial review pursuant to subsection (b) or (c) of this section. The accountability committee’s report to the approving authority shall address the relevant criteria set forth in §§ 512 and 516 of this title. The committee shall meet with the applicant in the course of its investigation and provide the applicant the opportunity to review and comment on the committee’s report 15 days before it is issued to the approving authority. The committee’s final report shall be provided to the applicant and made available to the public.

(d) If the accountability committee reports probable grounds for remedial measures pursuant to subsection (g) of this section, the approving authority shall hold public hearings to assist in its decision whether the criteria set forth for remedial action in § 516 of this title have been satisfied, after giving the charter school 30 days notice. The school shall be given the opportunity to respond to the accountability committee’s report at the meeting. Members of the public shall be given the opportunity to comment at the meeting.

(e) If the accountability committee reports that the school has complied with its charter and the criteria set forth in § 512 of this title, the approving authority shall approve or disapprove its report at a public meeting after giving the charter school 30 days’ notice. If the approving authority disapproves the report, it shall identify the reasons for that decision with particularity. Thereafter, the approving authority shall hold a hearing, within 30 days, to decide the appropriate remedy pursuant to subsection (f) of this section.

(f) If the approving authority determines that the criteria for remedial action set forth in § 516 of this title have been satisfied, it may revoke the charter and manage the school directly until alternative arrangements can be made for students at the school or place the school on a probationary status subject to terms determined by the approving authority which are directly relevant to the violation or violations.

(g) If a local school district which is an approving authority decides to revoke the school’s charter or place the school on probationary status, the applicant may file for arbitration in writing with the American Arbitration Association in Philadelphia within 20 days of the local board’s decision stating the reasons why it believes the local board decision was in error. A copy of said filing shall be provided simultaneously with the approving authority. The parties shall select an arbitrator in accordance with the American Arbitration Association’s procedure for voluntary labor disputes, provided, however, that such arbitration shall occur in this State. The arbitrator’s fees and costs shall be borne equally by the parties. The arbitrator shall convene a hearing and determine whether the local board’s decision was in error. The arbitrator shall have 30 days to render a decision following the close of the hearing. The arbitrator’s decision shall be final and binding upon the parties.

(h) If the approving authority is the Department and it decides to revoke the school’s charter or place the school on probationary status, its decision shall be final and not subject to arbitration or judicial review.

(i) Prior to any charter school closure decision, an approving authority shall have developed and shall utilize a charter school closure protocol to ensure timely notification to parents and employees, orderly transition of students and student records to new schools, and proper disposition of school funds, property, and assets in accordance with the requirements of 79 Del. Laws, c. 51 and other applicable laws. The protocol shall specify tasks, timelines, and responsible parties, including delineating the respective duties of the school and the approving authority. In the event of a charter school closure for any reason, the approving authority shall oversee and work with the closing school to ensure a smooth and orderly closure and transition for students, parents and employees, as guided by the closure protocol.

(j) In the event of a charter school closure for any reason, all cash and cash equivalents held by or available to the school shall be distributed first to satisfy outstanding payroll obligations for employees of the school, then to the remaining creditors of the school. Remaining State General Fund appropriations for that school year shall be returned to each district in an amount proportionate to the number of students received by each district. Additional remaining State General Fund appropriations shall be returned to the general revenue fund through the State Treasury. Remaining funds received from local school districts shall be returned to each of the districts in an amount proportionate to the number of students from each district. Any remaining funds and assets will be managed by the charter, as appropriate. In the event that a charter school files for bankruptcy, the distribution of all assets will be managed by the Bankruptcy Court or otherwise in accordance with bankruptcy laws. Nothing herein shall be construed in any way to impair or preempt a lien or security interest on any asset owned by a charter school or to prevent the school from paying the costs required to close or dissolve.

(k) In the event that all state and local funds due to a charter school are paid timely as required by § 509 of this title, a charter school authorized to operate in the State must by December 31 of that fiscal year maintain an available balance sufficient to pay the minimum costs necessary to provide students with the minimum annual instructional hours required by the Department of Education during the remainder of that fiscal year as reasonably projected by the charter school. Such costs include, but are not limited to, all employee compensation required to attain the minimum annual instructional hours during the remainder of that fiscal year. Such costs also include all fixed and variable nonpayroll expenditures incurred through the final month of that school year. A school’s failure to maintain sufficient available funds by December 31 of its third year of operation shall be deemed a material violation of its charter.

70 Del. Laws, c. 179, § 270 Del. Laws, c. 186, § 171 Del. Laws, c. 180, § 3173 Del. Laws, c. 164, §§ 22, 26;74 Del. Laws, c. 360, § 479 Del. Laws, c. 51, § 9.;

§ 516 Revocation criteria.

Approved charters shall be subject to revocation or probation, after the exercise of due diligence and good faith, only for the following reasons:

(1) The school, or its representatives, has committed a material fraud on the approving authority or misappropriated federal, state or local funds; or

(2) The school fails to comply with its charter or to satisfy, in its operation of the school, the criteria set forth in § 512 of this title.

70 Del. Laws, c. 179, § 2.;

§ 517 Charter transfer to different authorizer.

Transfer of a charter, and of oversight of that public charter school, from 1 authorizer to another before the expiration of the charter term shall require a petition by the public charter school or its authorizer to the new authorizer. A petition to transfer is considered a major modification and will follow the same timelines and hearing process as a major modification.

78 Del. Laws, c. 187, § 10.;

§ 518 Oversight and revocation for multiple charter holders.

For purposes of §§ 515 and 516 of this title, each charter held by a common board of directors shall be treated separately and individually.

It’s a pun off of the word stagflation which was short for stagnant inflation.  Stagpression is short for stagnant depression.  It is the most accurate indicator of our economic situation today, and tomorrow, and tomorrow, and tomorrow…

We seem to be in a Depression. but we aren’t.  The Housing market is recouping, jobs are consistently growing, energy costs have dropped,  corporate profits are now at record, higher than just before the 1929 crash, and an all time record high stock market..  We should be booming. But we aren’t.  We still have too high of an unemployment both on and off the books, we still have depressed low wages, we have lost massive wealth within the middle class over this century so far, we have record high student loan debt, we have low consumer confidence,  Hence, one class of America is booming.  The other class is still in Depression mode.  Hence we are in Stagpression….

It is easy to see why.

Here is a chart showing the free cash flow of businesses……

Free Cash Flow

Record highs. See?  Record highs.  We should be growing faster than China, we have so much investment money at our fingertips. But no.

Here is our investment track record…

Fixed Reinvestment

Ironically as we gave our businesses more and more money with lower taxes, less regulation, tax funded price supports, hand-tied their unions, and made free new technology at our taxpayers expense, despite all these perks and incentives, they invested less.  So what are they doing with their money?   Pick up any financial publication and read the headlines. They all will let you know.

Rather than invest in plants and equipment, businesses are primarily using their funds to repurchase their own stocks in order to boost management earnings and ward off hostile take-overs, pay dividends to stockholders, and accumulate large cash and bond holdings.

None of which help our economy. It is as if we work hard, buy their products, and they put that money into a mattress. Soon, we are going to run out of money. Fortunately the Fed has filled the gap by printing more and giving it to banks for free. It too, filters though the system, and when it gets to the top, it goes into the mattress.

Instead of recycling money, we are letting the tap flow from our printing presses to the top echelon of our society… Now do you get it?

What is missing is a system that recycles the materials back into our economy so we have less money we need to print. If we were talking about paper, we would be saying we need to recycle paper to keep from cutting down more and more trees simply to fill up our landfills….

We need a system to return that money to the bottom so it can rise again and again and again.

Here are the options that have been tried.

  • Price and pay freezes.
  • Government set and regulated prices.
  • Lower tax rates.
  • Cash incentives from taxpayers to reinvest.
  • Pleas and entreaties from the Oval Office.
  • Higher marginal tax rates.

Only one of these has worked.  Can you guess which one?    If you guessed higher tax rates spur reinvestment you are absolutely correct.

Notice the rates of reinvestment climbing in each of these presidencies:  Eisenhower, Kennedy-Johnson,  Carter,  Clinton each time  Congress legislated higher marginal tax rates.  Also notice the drops under Nixon, Reagan, and George W. Bush as Republicans cut the taxes…  The Bush Tax Cuts held through Obama’s first term, and account for today’s sluggish reinvestment. More precisely, the reinvestment turned upwards under Obama  until 2010 when Republicans took over Congress, and has fallen since. I can’t wait to see 2013’s numbers, for I expect to see real investment increase there as well. However those higher tax rates on the top half percent implemented at 2013’s beginning, sent financiers scurrying and bargain empty homes were bought up by investors with lots of cash which brought up the floor of the housing market (perhaps to our future peril).  It also accounts for stocks becoming an area of liquidity to hold cash,..explaining the record highs ….

So we have an opposite relationship:  cutting taxes increases corporate profits which go elsewhere other than reinvestment back into the ecnomy.

Increasing taxes, cuts into the Free Cash Flow, and funnels some of that flow over to reinvestment projects.

Ever wonder how Delaware’s 3 banks lasted for decades and then all disappeared very close to each other?  Bank of Delaware, Delaware Trust, and Wilmington Trust. are now owned  by other entities. (Wilmington Trust had some hand in cutting off its own foot).  Commerce Bank, which was New Jersey based had the same fate.

They lasted for years because big banks never had enough free money to buy them out.  Just think.  In Delaware there are now 3 less bank presidents.  18 less bank officers,  and who knows how many clerical workers are missing because the work goes to the owners headquarters, not located here…. One still wonders if our state could be better off, had MNBA not been bought up by an outside conglomerate.

So giving more money to businesses and corporations in this case, cost us jobs… and destroyed 3 long termed Delawarean corporations…

That was one example.  Across this nation, in every city,  every county, every state are millions more….

Raising the tax rates drives re-investment.  It is the only thing we know of so far that consistently works to drive re-investment.   Everyone who insists on cuts and de-regulation, no matter how they spin it, is pursuing a policy that has been completely disproven by reality and fact and of course, recent history..

Are you better off than you were under Clinton?  Your income level will probably determine your answer…..  Because yes, some people are indeed, a lot better off.   John Carney.  Tom Carper.  Chris Coons,  Jack Markell, to name 4 off the top of my head….  Better off too, are those who these four represent… the 1%.  Much better off!

If you find someone willing to raise taxes, stick to them like glue. They are the ones who will lead us back to prosperity…..

Until then, economic stagpression will continue…. continuing through tomorrow, and tomorrow, and tomorrow….(at a) petty pace that creeps from day to day….

Governor Markell in a distraction to focus attention away from Charter Schools breaking all sorts of statutes, has proposed a controversial 10 cent tax increase on each gallon of gas…

If you are like me at all, and I’m sure a large number of you are, when you first heard that you probably echoed my words or something to it.  “Are you effin crazy?  We just finally got prices back down under $3.33 a gallon (the feel good mark since $10 will buy you 3 gallons which will get you 60 miles or 150 in you have a 50 mpg car…. )!!!

Seriously, how are we going to get back on our feet?

Then I saw the car in front of me swerve and I didn’t and hit the pot hole digging it out another inch… Someone’s got to fix those I said…

Light bulb.

Now I have to get an alignment….  The cheapest alignment in Delaware is $69.95…  but I know the guy.  He charges everyone else $89.95…   So I asked myself how often to I have to get an alignment?  The correct answer if I was being truthful to myself?…. every time I hit a pot hole.  How much does it cost me if I don’t get alignments?  At $150 per tire, $600 dollars.  $300 if I just do the front…

I don’t know if you have noticed but there are an awful lot of potholes that just showed up this week.  i can name locations of about 20, some of which are pretty scary.

Is it cheaper for me to  pay 10 cents a gallon I wondered instead of buying new tires?   So I turned off Rick Jensen and did the math.

At 10 cents a gallon, my cheap alignment would equal  699.5 gallons.   Meaning if I didn’t pay the tax and suffered paying alignments, I would have to  burn up 699 gallons to break even… At  gallon 700, the cost  of the alignment becomes cheaper than the tax on the gas.  And that is a cheap alignment.  The $89.95 version would cost you 899 gallons of gas.  When you burn gallon 900, no tax and the allignment becomes cheaper.

How far does 899 gallons take you?… At 20 miles per gallon, it would carry you 17,980 miles….   if you get 25 mpg, it takes you up to 22,475 miles.  That is almost 2 years of driving in a leased car…. It is almost a year of driving for a normal family car with teen age kids.

So  if you don’t pay taxes on gas at 10 cents a gallon and just pay for alignments, at mile 22,476 you break even.  How many alignments will you have over that time? Bad as roads are today, possibly 4. at 3 month intervals…   Therefore by saving 10 cents a gallon, you would be spending  the amount for 4 alignments, or $359… in 22,476 miles…   So which would you rather pay?  $89.95 or $359 each year?

So what if you buck it and skip the alignments and just buy tires when the metal pokes through?  Well,  in two days since the pothole incident, I’ve lost all the tread off the corners of my tires, or about 50,000 miles worth.  The centers are still like new so at that rate, it would probably be a month before I have to buy two new front tires, and the going rate for big tires on sale is near $150 each installed, some more, some less of course. That equals 3 alignments right there…

So what if I don’t pay 10 cents a gallon tax, and never hit a pot hole… What happens then?   Fat chance that will ever happen, but if such a miracle ever were to occur, it would have saved you  $89.95 across every 22,475 miles…..


Now I certainly understand the emotional side of putting ones foot down and saying no to paying 10 cents more per gallon.   if you are like me you watched gas go up after George Bush was elected, and climb, and climb, and climb, and climb, and climb, and then, when the speculators had to cover their margins, it dropped to $1.40 a gallon.  Remember that?  Today the sell-shorts are larger than the sell-longs. That means BIG money is betting on the price of oil to fall over time, not rise.  Prices will continue to be near this level for a long time.  It sort amounts to a savings for us when we fill up at the pump.  A weeks driving at $4.00 cost us $100.  Now it costs us $83.25…  We have $16.75 to spend on other things,  Like 5.67th Rita Water Ices….which honestly, we wouldn’t have bought if gas was $4.00 a gallon….

I understand the emotional backlash.

It’s like being frustrated and behind, frustrated and behind, frustrated and behind, and finally there is an opening, a break going our way, and someone is trying to scoop that up away from us… How dare they!..Makes perfect sense….. that is on an emotional level….

But, what if you had a leaky roof?

Would you, when money finally came into your possession after a long drought, say, well we need to have some fun, lets blow it, whoopee?

Maybe… but if you had a roof that dripped, and could never have afforded the cost of a patch or replacement, and fatalistically accepted your plight in life with buckets mapped out in precise arrangements every time precipitation was announced,  would that change your calculations?  Would it make sense to first use that first extra money coming in, to fix that roof now, instead of letting it go, increasing its future repair cost with each month it goes unfixed?  Wouldn’t it be wise to put off going to the beach and use more extra money, instead of going now on the little bit you have, and having the roof cost more later?

That is where we are with this 10 cents a gallon controversy.  We want to spend our money at the beach this summer, and let the roof go.  But we should fix the roof first, and we all know it…  we just don’t want to do it…..

Politics aside, this is just a smart decision.  Putting a tiny bit aside now from everyone, to prevent a huge cost later in the future.  If you look at the costs of doing nothing, this 10 cents a gallon saves us money…. It really doesn’t hurt us; it really does help us save beaucoup de dollars…

Between last Thursday night and last Friday morning, the price of gas jumped 12 cents. from $3.27 up to $3.39.   Has anyone complained vociferously?  Have you heard anyone complain vociferously?  Have you seen any news media outlets running stories on the corporate price hike that was 20% HIGHER than the proposed gas tax increase?…. No.

Because it really isn’t that big of a deal.  Compare that to how many people you tell when you buy tires and get the sticker shock!  Because that is a big deal…

There are 1 million people in Delaware.  But 70 times that, 70 million come into Delaware every summer to visit our beaches…  Mathematically that  means the gas tax will be paid by 1 million Delawareans for 52 weeks a year and 70 million for one week a year while they are here on vacation.  So if we use 50 gallons of gas per week, per person (imagine little babies driving cars, lol)  that $5 of extra tax would be generate from Delaware’s citizenry, ($5.00 X i million X 52 weeks per year) or  $260 million each year, and from the visitors, ($5.00 X 70 million X 1 week)  or $350 million would be added to our coffers.  So the total  would be $260 of which came from us, and $350 which comes from our visitors.

Delaware then gets a benefit of $610 million dollars while coughing up $260 million… which as we said above, really doesn’t hurt us at all on an individual scale.  So if people were cars, we’d have $610 million.  But, the ratios opf in-state and out-of-state automobiles remain the same, since the allotment of vehicles is similarly proportioned to the amount of people.  Just with Motor Vehicle data I didn’t bother to look for, we can make a very close calculation in dollar figures which should closely mirror the  42% of the total received revenue that Delawareans would actually pay…..

It is very rare when one finds a tax where it costs one less to pay, than not to pay….  This one is…


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