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Gov. Meyer signs bill allowing Newark to tax University of Delaware

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Gov. Meyer signs bill allowing Newark to tax University of Delaware


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  • The tax, capped at $50 per student, could generate $2.4 million for the city.
  • The University of Delaware acknowledges the city’s financial needs and aims to maintain affordable education.
  • The Newark City Council will determine the exact tax rate, considering student-related expenses and inflation.

The city of Newark is now allowed to tax the University of Delaware for every Blue Hen.

Gov. Matt Meyer signed a bill on June 24 amending Newark’s city charter allowing the city to levy a per-student tax on UD, which is by far the largest economic and cultural force in the city. The public university sits on about 40% of the city’s land, but is nontaxable.

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Newark’s government has been searching for new revenue streams amid cost and tax increases. Most of the city’s revenue comes from utility payments, which have increased.

The bill was introduced in January by Democratic State Rep. Cyndie Romer, from Newark. It passed both the House and Senate unanimously.

“We’re happy the governor saw this as fit to sign,” Newark Mayor Travis McDermott said.

The law allows the city to tax up to $50 for every student, which could rake in an additional $2.4 million in tax revenue. The city collects around $180,000 annually from UD from deals made in 1965 and 2002. In addition to being a local pillar, UD is responsible for billions of dollars in statewide economic output every year.

In a statement to the News Journal from May, the University of Delaware said it has a shared interest in Newark’s improvements. It remains committed to access to its education.

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“We are understanding of and sympathetic to the city’s needs, which — in many ways — reflect ours, due to inflation-induced costs and other financial pressures,” the statement from May 23 reads. “Our goal is and remains centered on providing an accessible and affordable pathway to a UD education for our students — those who contribute social, cultural and economic value to the City of Newark.”

It is now up to the City Council to come up with how much they plan on taxing the institution. The new tax rate might not be at the maximum rate, either. McDermott said the council will find out how much the city is spending on students and then find a rate to reflect that, while leaving room for inflation-related hikes in the future.

Hearings to shape the city’s next annual budget are coming up, and this new revenue stream would need to be factored in. McDermott said he wants a tax rate established by the time budget hearings begin, which should be within the next month.

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

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Delaware

AIG Unit Sued Over Coverage for Delaware Plant Mercury Cases

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AIG Unit Sued Over Coverage for Delaware Plant Mercury Cases


An American International Group Inc. unit was hit with a lawsuit seeking coverage for litigation alleging people were exposed to mercury from a former chlorine manufacturing facility in Delaware run by Occidental Chemical Corp.

Environmental Resource Holdings LLC, the successor to Occidental through a merger, should be covered under liability policies that AIG’s National Union Fire Insurance Co. of Pittsburgh, PA, issued to a contractor that worked at the facility, according to the lawsuit filed Wednesday in the US District Court for the Middle District of Louisiana.

The lawsuit centers on agreements from 1989 and 1991 that required the contractor, …



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Delaware holds off Louisiana for 68 Ventures Bowl win in first season of FBS play

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Delaware holds off Louisiana for 68 Ventures Bowl win in first season of FBS play


MOBILE, Ala. (AP) — Jo Silver ran for 116 yards, including a 61-yard touchdown, and Delaware wrapped up its first year in the FBS with a 20-13 victory over Louisiana in the 68 Ventures Bowl on Wednesday night.

The Fightin’ Blue Hens, who went 6-6 in their first year of FBS play, were granted a waiver to play in a bowl game after there were not enough six-win teams to fill all 42 of the FBS bowl games. In general, first-year FBS teams are not chosen for bowl games during their transition period. Wednesday’s victory makes Delaware 7-6 overall.

The Blue Hens had to defend two passes into their own end zone in the final seconds to preserve the win. The Ragin’ Cajuns had the ball on their own 7-yard line with 1:41 remaining. Lunch Winfield led a drive that included a 32-yard completion to Charles Robertson and a pass interference penalty on Delaware.

After Louisiana (6-7) reached the 8-yard line, Winfield ran for 1 yard on first down and threw incomplete on second down. On third down with two seconds left, Blake Matthews broke up a pass in the end zone.

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Silver’s long touchdown gave Delaware a 7-0 lead late in the first quarter and the Blue Hens went on to lead 10-3 at halftime. Nick Minicucci’s 35-yard touchdown pass to Sean Wilson made it 17-3 early in the third quarter and a field goal made it 20-3 midway through the third quarter.

Louisiana kicked a field goal to make it 20-6 heading to the fourth and Winfield added an 8-yard touchdown pass to Shelton Sampson Jr. to make it 20-13 with eight minutes left.

Minicucci passed for 176 yards and Winfield had 231 yards.

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Delaware replaces Trump’s U.S. attorney without legal drama seen in Jersey, Virginia

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Delaware replaces Trump’s U.S. attorney without legal drama seen in Jersey, Virginia


Sens. Coons, Blunt Rochester deemed Murray unqualified

Murray also acknowledged that she could not have obtained the post by the process outlined in the U.S. Constitution, in which a president makes a formal nomination and U.S. Senate confirmation is required.

That’s because part of that process is a longstanding tradition that requires the nominee to receive so-called “blue slip” endorsements by their state’s two U.S. senators.

Delaware’s two U.S. senators, Chris Coons and Lisa Blunt Rochester, are Democrats who interviewed Murray for the post. Coons said the duo decided Murray, who has done criminal defense work, didn’t have the prosecutorial experience to qualify as the state’s chief federal law enforcement official.

U.S Sen. Chris Coons says he’s pleased Delaware avoided the legal and political drama that has transpired elsewhere. (Emma Lee/WHYY)
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Although Murray accused the senators of playing politics with her unconventional appointment, Coons and Blunt Rochester disagreed.

“Any suggestion of political partiality throughout this process is misleading and blatantly false, said Taj Magruder, a spokesman for Blunt Rochester.

Coons, a member of the Senate Judiciary Committee that considers nominees before they are considered by the full Senate, told WHYY News last month that Murray’s acting status was “probably illegal.”

After Colm Connolly, Delaware’s chief federal judge, issued the order naming Wallace, Coons said he’s pleased the judges exercised their lawful “power to appoint a U.S. attorney in the absence of a presidential nomination.”

Colm Connolly, Delaware's chief federal judge, issued the orders rejecting Murray and putting Wallace in the post.
Colm Connolly, Delaware’s chief federal judge, issued the orders rejecting Murray and putting Wallace in the post. (U.S. District Court, Delaware)

Coons said he’s also relieved that the transition occurred without the rancor seen in New Jersey and the Eastern District of Virginia.

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In Virginia, former Trump insurance lawyer Lindsay Halligan was ruled ineligible by a federal judge in her district because Bondi named her interim boss after the 120-day period to do so under federal law had expired.

Perhaps more importantly, the indictments Halligan obtained days after taking office against former FBI director James Comey and New York Attorney General Latisha James were dismissed. Bondi has pledged to appeal but has not yet done so.

Though Habba resigned after the adverse ruling in New Jersey, Halligan remains in her post in Virginia.

Other end-around maneuvers by Trump and Bondi have been deemed unlawful in Nevada, New Mexico and California, but those three remain under appeal.

“I’m just glad that we’ve avoided that level of drama here and that in Ben Wallace, we’ve got a court-appointed U.S. attorney who can keep the office moving forward in a constructive way,” Coons said.

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Besides handling major crimes, “the district of Delaware handles some of our country’s most important patent litigation, corporate litigation, bankruptcy litigation,” Coons said.

“So it’s important for Delawareans and our constituents that we have a well-managed, disciplined, appropriate respect for the rule of law in how the federal courts here are handled and how the U.S. attorney’s office is led. And I’m relieved that we seem to have a path forward here that is appropriate.”

Law prof says Judge Connolly ‘navigated it as best he could’

Carl Tobias, a law professor at the University of Richmond who tracks appointments of U.S. attorneys and federal judges, praised Connolly, a Republican and former U.S. attorney for Delaware, for his deft handling of the potentially volatile situation.

“He navigated it as best he could. He didn’t provoke a confrontation,” Tobias said of Connolly, who Trump appointed as a judge during his first presidential term, with the Senate’s approval. “And he deserves a lot of credit for keeping the courts moving.”

Prior to Friday’s order, Connolly had publicly sought applications for the post, writing that “the court would only appoint a person the court deems qualified for the position.”

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That clearly wasn’t Murray. In his previous order in November, Connolly wrote that judges had decided not to name anyone to the post after Murray’s interim status expired Nov. 12.

That prompted Bondi to name her “acting” U.S. attorney and led U.S. Deputy Attorney General Todd Blanche, himself a former Trump personal attorney, to publicly rebuke Connolly on social media.



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