As a member of the Delaware Economic and Financial Advisory Council and the legislature’s budget-writing Joint Finance Committee, I’m deeply concerned about recent actions that threaten the credibility of our state’s fiscal process.
DEFAC is a nonpartisan body of business leaders, financial experts, legislators and state officials that forecasts Delaware’s revenues several times a year. Because the state may legally spend no more than 98% of expected income, accurate projections are essential to our budgeting.
At DEFAC’s most recent meeting, council member Mike Houghton asked for clarity about projected corporate franchise taxes and fees — revenues that make up more than a third of Delaware’s income. His question was prompted by the fact that those estimates had not changed in three months, despite shifts in the corporate landscape.
For more than a year, Delaware’s reputation as a leading venue for incorporation has been cast into doubt by tax changes, uncertainty over the adjudication of business law, reform legislation and the exit of multiple large revenue-generating corporations from the state.
The Meyer administration has touted the increase in the total number of businesses incorporated here. By contrast, Mr. Houghton’s question was aimed at gauging the health and status of this vital revenue stream.
Not only was this reasonable and necessary request dismissed, but Gov. Matt Meyer also removed Mr. Houghton from DEFAC soon afterward. Regardless of the governor’s motive, the decision sends the troubling message that raising difficult fiscal questions may carry harsh consequences.
Like the Federal Reserve, DEFAC is designed to function as an independent, data-driven body, whose work must remain insulated from political pressure. Its credibility depends entirely on its members’ willingness to challenge assumptions and ensure that the numbers guiding our budget are accurate and transparent.
This is not about one individual but about preserving a system that has long safeguarded Delaware’s fiscal stability. Any action that discourages open dialogue or creates fear of reprisal weakens the foundation of public trust.
I believe it is essential that we reaffirm DEFAC’s independence and ensure that our budget process remains grounded in integrity and sound judgment.
Rep. Charles Postles, R-Milford
Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org.
