Leading lawmakers in Delaware's General Assembly want to codify the existence of Delaware's Economic & Financial Advisory Council, which has existed for nearly half a century through executive order.
Introduced this week, House Bill 370 says, "it is in the interest of the State for the General Assembly to codify DEFAC to ensure its continued existence."
The council, created in the 1970s, was renewed by Governor’s executive orders over the years. It serves as a nonpartisan financial advisory group for the governor and General Assembly and is made up of business leaders, financial experts, legislators, and state officials.
Senate Pro Tem Dave Sokola (D-Newark) said the recent dismissal of a longtime DEFAC member, Mike Houghton, who questioned availability of corporate franchise revenue data, increased interest in putting DEFAC on the books.
"There's no secret something happened," Sokola said. "And people who had been talking previously and people who hadn't even thought about it started raising the question."
House Minority Leader Tim Dukes (R-Laurel) is also among the bill’s sponsors. He said over the last few weeks, Democratic and Republican caucus leadership began to discuss the issue, "and decided that it shouldn't just be hung out there. It's an executive order that could be changed by any governor, not just the governor that is serving now."
Sokola said HB 370 doesn't make dramatic changes to DEFAC's current operations. If implemented he said it should be "seamless."
Under the measure, The Senate President Pro Tem and House Speaker still appoint two members each, and the governor appoints the rest. The bill caps DEFAC at 34 members, and keeps the current minimum of 25.
Currently, the council had 33 members. The remaining members from the Carney administration are Brian Pettyjohn, Colleen C. Davis, Palash Gupta, Pierre Anderson, Sheila M. Bravo, Guy F. Marcozzi, Michael S. Jackson, Kim Williams, Patricia B. Key, and Thomas J. Shopa.
Sokola said he and other lawmakers made Meyer’s office aware they planned to file the legislation. Delaware Public Media has contacted Gov. Matt Meyer's office for comment.
Dukes said he spoke to Meyer about the bill.
"I said, 'once you've had a chance to look at the bill, then let's talk. Because, you may see there's things in the bill that you really support.'"
Dukes said HB 370 was circulated amongst leadership, but not the broader General Assembly. It’s assigned to the House Administration committee, which is set to meet next week.
According to the Center on Budget and Policy Priorities, every state has a process to forecast its revenues. Delaware is among the majority that employ consensus between the executive and legislative branches of government. It is also among the majority of states which bring in outside experts. Other states, like Maine, have budget advisory boards codified in law rather than through executive order.
And according to the National Association of State Budget Officers, "in most states, the source of authority for providing revenue estimates for the executive budget is in statute." That's the case in Delaware too, as it provides these estimates to DEFAC.
States like Maine, Washington, and Rhode Island have codified their advisory boards by law.
Meyer adds new member
Earlier in the week, Meyer announced a new addition to DEFAC, Brenda Wise.
Wise becomes one of the twenty new members on DEFAC since Meyer took office, not counting general assembly who are on the council.
Wise has a law degree from Widener University Schools of Law and worked as the Director of Policy at the Delaware Office of Management & Budget from 2021 to 2023.
Currently, Wise is Corporate Counsel and Director of Global Government Affairs at CSC. CSC offers business, legal, tax, and digital brand services to companies.
According to Wise’s LinkedIn, her role at CSC involves: managing risk related to international employment law and litigation, negotiating business agreements, and strategizing global partnerships with government entities and regulators.
