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Can Delaware’s Next Governor Fix a Jim Crow-Era Funding Formula?

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Can Delaware’s Next Governor Fix a Jim Crow-Era Funding Formula?


In 2000, Delaware education advocates began pushing to reform the state’s school funding system — a relic of the Jim Crow era that baked profound inequities into district budgets. Since then, half a dozen marquee tasks forces and commissions have chimed in, unanimously calling for a wholesale overhaul.

This quarter-century of broad agreement notwithstanding, Delaware’s next governor will inherit the problem, a rising price tag for the fix and, critics complain, no clear political roadmap.

Six candidates are running. Democrats Lt. Gov. Bethany Hall-Long; Matt Meyer, county executive of New Castle, the state’s largest county; and Collin O’Mara, World Wildlife Federation CEO and a former Delaware environmental official, will face Republicans Mike Ramone, who is minority leader of the state House of Representatives; retired 9/11 first responder Jerry Price; and businessman Bobby Williamson.


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The state’s last Republican governor left office in 1993, and this year’s polls again strongly favor Democrats. The current contest, then, will likely be decided by the Sept. 10 primary, in which Hall-Long and Meyer are the front-runners.

Whoever wins, a recent court case and subsequent legislation commit them to take action. In 2020, outgoing Gov. John Carney settled a lawsuit brought by the ACLU on behalf of the Delaware NAACP and a coalition called Delawareans for Educational Opportunity, in part by agreeing to a small boost in aid for a mushrooming population of disadvantaged students.

The settlement also required the state to commission an American Institutes for Research study to determine exactly how underfunded Delaware’s schools are. Earlier this year, the researchers reported that fixing the problems would cost $500 million to $1 billion.

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“An alarmingly clear and negative relationship exists between the percentage of low-income students served by schools and the outcomes they achieve for students,” the report declared.

After the report’s release, lawmakers created a planning commission to figure out how to raise revenue and right inequities, with an eye toward releasing recommendations in October 2025 for a new funding system to take effect in 2027.

“The time has come for us to stop kicking this can down the road and start working on real systemic reforms,” said state Sen. Laura Sturgeon, one of the Democrats leading the charge.

But others are decrying the appointment of yet one more panel to study what they say is a well-understood problem. ACLU of Delaware Legal Director Dwayne Bensing isn’t convinced that the 2027 timeline — seven years after his organization’s suit was settled and almost a decade after it was filed — does not, in fact, just create more delay.

Reports by a succession of commissions packed with a Who’s Who of Delaware education advocates, philanthropies and state and local officials were released in 2001, 2006, 2007, 2008, 2015, 2017 and 2021. The only real difference in the new American Institutes for Research report, released this past March, was the price tag.

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Will Fallout from COVID Recession Fix Delaware’s Jim Crow-Era School Funding?

A central issue identified over and over: With a few, narrow exceptions, Delaware does not include financial supplements to offset the cost of services needed by children with disabilities, those from impoverished households or English learners. Its unusual “unit-based” funding formula is actually set up to send more money to wealthy school systems than to impoverished ones.

The state tallies the number of teachers a district employs, their years of seniority and other credentials and then sends money to pay for enough educators — at a salary level corresponding to their presumed qualifications — to reach a staff-to-student ratio, or “unit,” spelled out in the law. The staffing ratios apply statewide, but school systems with higher salaries receive more money for each unit.

Because this means wealthy districts automatically receive more money, those with the most property tax revenue have been able to hire and retain the most sought-after teachers, while struggling, property-poor school systems have no way of competing for faculty or offsetting the costs of poverty.

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All three Democratic candidates and two of the Republicans recently attended an education forum moderated by Marcus Wright, who serves on the board of Seaford School District, an impoverished school system in the southern part of the state. Wright came away concerned about the lack of a plan for moving the reform forward.

“I thought that there were very broad ideas, but not a roadmap or a game plan,” he says. “I’ll just say that I expected more.”

Four of the six candidates agree the school finance formula needs fixing, with Republican Ramone calling for a “bipartisan approach” to the overhaul. The two candidates that do not mention the reform are GOPers Price, who favors expanded parents’ rights and career education, and Williamson, who calls for “individual student allotment” vouchers.

The platforms of all three Democrats tick lots of boxes on educator wish lists, with Hall-Long’s proposals perhaps the most traditional. Funding reform is near the end of her published roster of priorities, which is topped by expanded early childhood education, universal free school meals, spending on student mental health, higher pay for teachers and smaller class sizes.

Carney, who is term-limited, left Hall-Long with a mixed record. Under the settlement with the ACLU, he immediately increased supplemental funding for the state’s most vulnerable students by an amount starting at $25 million in a year in 2020, rising to $60 million annually starting in 2025. It’s a start, critics concede, but a pittance compared to the $500 million to 1$ billion called for in the AIR report.

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Hall-Long’s candidacy has been dogged by several ethics scandals — including complaints about payments she may have made to her husband, who has served as her campaign treasurer since she entered electoral politics in 2016.

Her closest competitor, Meyer, is a former math teacher who in 2016 was elected New Castle county executive. New Castle is Delaware’s deep-blue northernmost county, home to 60% of the state’s population, 57% of its voters and the city of Wilmington, where school funding inequities are perhaps the largest.

Meyer started as a Teach for America corps member at an all-boys charter school in Wilmington, where almost every student was impoverished. The school struggled — in part because of the uneven playing field Delaware’s various commissions have noted. It closed years after Meyer left.

As county executive, Meyer was also a defendant in the ACLU suit, which challenged decades of delays in updating the property valuations used to finance local school aid in Delaware’s three counties. His 18-page education platform is the most detailed of all the candidates’, including specifics on reforming both the state funding system and county-level taxes.

“Funding cannot change overnight but must increase with urgency,” the document asserts, pledging to “Better align our state’s funding system with the AIR report’s recommendation of an additional increase of $3,400 to $6,400 per pupil.”

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Because of the inequities with county and property development taxes, some districts are able to send four times as much funding to schools as their neighbors. Any new state aid formula must account for this, Meyer says in his plan.

The third Democrat, O’Mara, is a former Delaware secretary of natural resources and environmental control. His education platform commits to fully implementing the recommendations in the AIR report, suggesting that one way to fix the system would be to leave the basic “per-unit” calculation alone and add more funding for challenged students.

So how will the next governor achieve his or her vision? At the time the state settled the ACLU suit, proponents of the agreement said they thought shifts in state demographics and the composition of the General Assembly might help cement the political will to raise taxes and change the way the money is distributed. One of these shifts is the rapid demographic change in Delaware’s student population.

For decades, inadequate and inequitable funding was a problem of the state’s blue, urban districts. But more recently, education gaps in Sussex — the state’s southernmost, red-leaning county — have widened as the area’s large poultry processing industry has drawn an influx of Spanish-speaking migrants. Advocates had hoped the shift would drive home the notion that inadequate school resources are not just an urban problem.

Simultaneously, the 2018 election of a wave of younger, more diverse, left-leaning lawmakers — among them several people of color who sought elected office to advocate for equity in education — was supposed to buoy efforts to reform the system. In 2021, spearheaded by the new lawmakers, a bipartisan swath of the General Assembly passed a resolution committing to overhaul the funding formula. This year, some of the same legislative leaders sponsored the bill that created the latest commission.

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The sponsor and co-sponsor of the 2024 legislation, Sturgeon and state Sen. Elizabeth Lockman, declined to be interviewed for this story; Rep. Nnamdi Chukwuocha did not return emails requesting comment, though he did speak at length for a 2021 74 Million piece on the urgency the pandemic’s academic losses would supposedly lend to efforts to reform the funding system.

Some are optimistic the new effort will succeed. Zahava Stadler, project director of New America’s Education Funding Equity Initiative and an expert on Delaware’s school funding system, says she understands advocates’ concerns but is less skeptical than some that the commission announced in July will come up with meaningful reforms.

“Just because the AIR report made specific recommendations doesn’t mean the political system won’t have to hash them out,” she says. “Sometimes these reports sit on a shelf and go nowhere, and sometimes they get results.”

Some of the wonkier shifts are already underway, she notes. Property values for local tax purposes, until recently frozen at 1970s and ‘80s levels, are now being reassessed every five years — a significant change, if not a widely understood one. That will raise revenue, she explains, but the state needs to follow up with a system for more equitably redistributing this money so tax-poor districts aren’t locked out of the gains.

For his part, Bensing, the ACLU director, worries that a general agreement that the system needs fixing without new specifics means more delays. “It’s not politically convenient for our elected leaders to tell voters they are going to increase taxes,” he says. “But that is the right thing to do.”

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He wonders whether a new court challenge would add a fresh sense of urgency — or give recalcitrant elected officials the political cover of a legal threat or edict to blame for changes to the tax system.

Wright has more confidence that in the long run there will be change, but decries the impact of the incremental pace on students.

“How can we compete? How can we fill out classrooms with teachers, with paraprofessionals, with all the people it takes to run a school district?” he asks. “Our kids don’t deserve any less than any other kids.”



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Delaware

DNREC’s decision to prohibit data center upheld by state board

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DNREC’s decision to prohibit data center upheld by state board


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  • A Delaware board upheld the state environmental agency’s decision to prohibit the “Project Washington” data center.
  • The Delaware Department of Natural Resources and Environmental Control (DNREC) ruled the project violated the 1971 Coastal Zone Act.
  • The developer, Starwood Digital Ventures, argued the project’s infrastructure did not fall under the act’s regulations.

Project Washington’s prospects in Delaware appear murkier after a board stood on the state environmental agency’s decision to prohibit the data center proposal.

The public hearings with the Coastal Zone Industrial Control Board kicked off in Dover on March 24 at the Delaware Department of Natural Resources and Environmental Control’s Auditorium near Legislative Hall. It finished on March 26 after days of testimony from witnesses supporting and opposing the DNREC decision on the data center, which would be the largest in the state.

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Project Washington was prohibited by DNREC in February because the agency said it violated the Coastal Zone Act, which was signed in 1971. Project Washington’s developer, Starwood Digital Ventures, filed an appeal of that decision soon after.

A little more than 30 people attended the meeting on March 24. It was modeled more like a court hearing than a public government meeting. The next two days included testimony from witnesses from both Starwood Digital Ventures’ and DNREC’s attorneys.

The Coastal Zone board consists of nine members, five of which are appointed by the governor and approved by the state Senate. Four other members are the state director of the Division of Small Business and Tourism and the chairs of the planning commissions of each county.

It’s the first time this assembly of the board has been called to action. Board members said they are making decisions on a fact and law basis, and are trying to cut out the noise this project has caused on social media and in other public meetings.

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Witnesses and experts explained a ton of technical definitions for generators and got into the nitty-gritty of emissions and infrastructure. It was up to the board to take those facts in stride and make their decision.

“What we have to do is come back to the purpose of the appeal,” said Willie Scott, a member of the board during a break between sessions on March 24.

They voted unanimously to uphold the DNREC decision to prohibit the project based on the Coastal Zone Act.

Courtroom-like arguments for and against the data center

The hearing on March 24 began with opening arguments. Attorneys for Starwood Digital Ventures, Project Washington’s developer, argued that Project Washington’s purpose and infrastructure fall outside of the Coastal Zone Act’s regulations, and that DNREC’s definitions of smokestacks and tank farms are flawed.

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“It fails every element of the statutory definition, as interpreted by the Delaware Supreme Court and the Delaware Superior Court,” said Jeff Moyer, an attorney representing Starwood. “Its limited diesel infrastructure is not a tank farm within any reasonable meaning of that term, and each of the core three functions of Project Washington – data storage, electrical infrastructure and backup power – are all expressly not regulated.”

DNREC’s attorneys argued the data center campuses fall under heavy industry in a modern context, and it is the kind of project the act is intended to kill. They also argued it has a potential to pollute when backup generators are working if the power fails.

“The law requires that it be prohibited, not recharacterized, not broken into pieces and minimized, but prohibited,” said Michael Hoffman, attorney representing DNREC. “Over the course of the next few days, we will show that Starwood’s proposed hyperscale data center is one such project.”

Closing arguments on March 26 reiterated arguments from both sides, and the board voted to stand with DNREC.

How Project Washington and DNREC got here

The Coastal Zone Act prevents heavy industrial projects from developing along the Delaware River and Bay, Chesapeake and Delaware Canal, Atlantic Ocean, Indian River Bay and other Sussex County bays. The 14 projects that have been grandfathered include the Delaware City Refinery and the Port of Wilmington.

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Project Washington’s proposed site falls within the defined coastal zone, which extends west to Dupont Highway in that specific spot. In February, DNREC said the massive data center is prohibited, stifling the project while it worked through state and county permits.

It would be 11 two-story data center buildings surrounded by electrical fields on two large land parcels north of Delaware City accessible by Hamburg Road, Governor Lea Road and River Road. 

DNREC’s beef with the project is in the backup generators and their accompanying diesel tanks. The data center is proposed to run 24 hours a day, seven days a week, 365 days a year. If power goes out, it needs to use the backup generators to keep running. DNREC’s decision says the project includes some 516 double-walled diesel fuel belly tanks, each capable of storing some 5,020 gallons of fuel. That’s about five acres of tank farm.

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There would be 516 backup generators with 516 smokestacks, which DNREC said in its original decision is the exact type of infrastructure the Coastal Zone Act targets by prohibiting “heavy industrial” projects.

Starwood Digital Ventures, appealed the decision, mentioning countervailing factors including avoiding wetlands, no direct surface water discharges and projected economic benefits.

Their appeal said the original DNREC decision “solely focuses on alleged environmental risk and worst-case emissions, and does not fairly weigh or explain these countervailing factors in light of regulating criteria.”

Jim Lamb, who is handling media communication for the project, said the backup generators would only run 37 to 45 minutes per month just to test if they are operational. Project Washington will also use a closed-loop cooling system, limiting its water intake.

The appeal required a hearing, which is the first time the board made a decision since 2021.

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The developer of the project did not immediately respond to Delaware Online/The News Journal’s request for comment. New Castle County officials did not immediately respond to either.

Shane Brennan covers Wilmington and other Delaware issues. Reach out with ideas, tips or feedback at slbrennan@delawareonline.com.



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Delaware

GGE of Delaware Jumps on the Rally Sponsor Train!

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GGE of Delaware Jumps on the Rally Sponsor Train!


The Rally Sponsor Train keeps rolling! We are incredibly proud to welcome GGE of Delaware as a Premium Sponsor ($2,500) for the 5th Annual Rally for Our First Responders! This level of support makes a tremendous impact and helps us continue to grow…



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Lottery ticket worth $730K sold in Delaware County, Pennsylvania

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Lottery ticket worth 0K sold in Delaware County, Pennsylvania



A lottery ticket worth $730,000 was sold in Delaware County, Pennsylvania, Tuesday. 

The Pennsylvania Lottery announced Wednesday that a Match 6 Lotto ticket that matched all six winning numbers — 4-14-17-19-20-36 —  was sold at the ShopRite of Drexeline on State Road in Upper Darby Township. The store will earn a $5,000 bonus for selling the winning ticket.

The winner of the ticket won’t be known until they claim the prize. Winners of the Pennsylvania Lottery Match 6 Lotto have one year from the drawing date to claim it. 

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If you purchased a winning ticket at a retail store, the Pennsylvania Lottery says you should immediately sign the back of it. Online winnings will automatically appear in a player’s account after the claim has been processed. 

More than 29,200 Match 6 Lotto tickets also won prizes during the drawing.

Two other winning lottery tickets were recently sold in the Philadelphia region.

A Match 6 Lotto ticket that won $5,863,758 in the March 16 drawing was sold in Montgomery County. The Sunoco at 330 East Lancaster Avenue, Lower Merion Township, will earn a $10,000 bonus for selling that winning ticket.

Also in Montgomery County, Pottstown Beverage County recently sold a $3 million-winning scratch-off, officials said on March 19.

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The Pennsylvania Lottery is the only state lottery to direct all proceeds to programs that benefit older residents. Since ticket sales started in 1972, it has contributed more than $37.2 billion.



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