The Joint Finance Committee is looking into different ways to spend about $12 million the state received from a settlement with banking giant JP Morgan Chase last year.
The Markell administration and the Attorney General’s office’s told the committee earlier this year they’d like to use the money on community revitalization programs throughout Delaware.
Their plan would allocate $5 million toward buying and fixing houses and abandoned properties and spend $2.4 million on general beautification programs.
Terms of the settlement say the money has to be spent to help those affected by the subprime mortgage crisis. Some money from the overall settlement reimbursed the state pension fund.
But Chief Deputy Attorney General Ian McConnel says the language isn’t as specific on how to best help those affected by the crisis.
“We know who got hurt on the pension fund side, right? We have a spreadsheet that tells us dollar for dollar who got injured by the bad conduct, the alleged bad conduct," said McConnel. "But it’s not as easy as it relates to understanding who got hurt in the housing market.”
JFC members aren’t against the proposal from Markell and the AG's office, but say the amount of money available won’t allow it have a substantial effect on crime in places like Wilmington.
Sen. Karen Peterson (D-Stanton) adds it would be different if the state could continue to spend millions each year on the project.
“There’s not going to be another $5 million next year. So what are we going to do, fix up one block in Wilmington and one block in Dover and one block in Georgetown? I don’t see what that does in the big picture.”
JFC took no vote on the matter, saying it will address the issue when they begin finalizing the state’s proposed budget in two weeks.
