By Logan B. Anderson

DOVER — The Delaware Department of State presented lawmakers with a “good challenge to have,” during its turn before the General Assembly’s Joint Finance Committee on Tuesday.

The “challenge” is that the number of business entities incorporating in Delaware has been and is growing, quickly.

“We have become a brand. Just like Coca-Cola is a brand, we’ve become a brand. We are the go-to for many kinds of incorporations,” said Delaware Secretary of State Jeffery W. Bullock.

Proof of Delaware’s dominance in the incorporations world is that 95% of initial public offerings, or IPOs, in the U.S. are incorporated in the First State. An IPO is when a private company becomes public by selling its shares on a stock exchange.

“When a private company becomes a public company that means they become one of the big taxpayers because they have all these additional shares out there and that dictates how much how much money they pay us,” Mr. Bullock said.

In the past decade nearly 1 million entities incorporated in Delaware. Those filings generated a lot of money for the state. Last fiscal year, the department deposited $1.78 billion to Delaware’s general fund. Of that, $1.64 billion was generated by the State Department’s Division of Corporations.

Mr. Bullock told JFC leaders on Tuesday that his department is facing labor shortages in the divisions that serve corporations. The division is down at least 15 employees currently, Sec. Bullock said. To attract new employees and retain the current staff, Mr. Bullock said the division plans to offer higher wages and other incentives.

Some things that state government is responsible for need special attention. For example, the Delaware Department of Education oversees schools and learning. The Delaware Department of Transportation handles issues relating to transportation. The state Department of Labor in responsible for issues relating to employment.

The Delaware Department of State runs everything else.

Secretary of State Bullock manages divisions that deal with historical and cultural affairs, the arts, veterans services, the Veterans Home, banks, libraries, small businesses and more.

The State Department’s budget request reflects those varied responsibilities.

It includes $100,000 for the state to participate in the Dolly Parton Imagination Library Support Program. The budget request will provide books for 4,000 new Delaware students. The request also includes funds to maintain the state’s veteran cemeteries.

“During COVID-19, we worked really hard with arts organizations trying to keep things afloat. It has not been easy. We sent as much money over to them as we possibly could,” Sec. Bullock said.

“I’m glad to report that the state of the arts in Delaware is pretty good and I think getting better.” The total recommended Fiscal Year allocation for the Department of State from Delaware’s General fund is $30,714,500.

The Joint Finance Committee will continue on Wednesday with budget presentations from the Delaware Advisory Council on Career and Technical Education, the Delaware Institute of Veterinary Medical Education and the Department of Education.