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Newark is a Gov. Matt Meyer signature away from being able to levy a per-student tax on UD

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Newark is a Gov. Matt Meyer signature away from being able to levy a per-student tax on UD


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  • Delaware’s House Bill 34, allowing Newark to impose a per-student tax on the University of Delaware (UD), passed the state Senate unanimously.
  • The bill permits a tax up to $50 per student per semester, aiming to generate additional revenue for the city.
  • While the bill awaits Gov. Matt Meyer’s signature, Newark Mayor Travis McDermott assures a measured approach to implementing the tax if approved.

A per-student tax from Newark on his hometown college is closer to a reality than ever.

The state Senate passed House Bill 34, which would amend Newark’s city charter to allow it to levy a per-student tax on the University of Delaware. UD is the largest university in the state and the economic and cultural heartbeat of Delaware’s third most populated city. There weren’t any ‘no’ votes from any state representative of senator against the bill.

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The bill allows the city to levy a tax of up to $50 per-student, per-semester. City officials have long been searching for an additional revenue stream to help with rising property taxes and utility costs. UD occupies nearly 40% of the city’s municipal borders, and it sits on untaxable land. But its students, faculty, staff and their families are the drivers of Newark’s economy.

Now the bill has to be signed by Gov. Matt Meyer. The governor’s office said the legislation is under review, but did not indicate anything further.

Newark Mayor Travis McDermott said this is a long time coming and thanked the bill’s sponsor, Democratic state representative for Newark Cyndie Romer, for her work to get it through.

“I think it’s a piece of the puzzle to achieving equitable funding for the City of Newark,” he said.

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The bill has one amendment, deleting the cost of living adjustment made to the tax rate every year, keeping the limit at $50. If signed, it will be up to the city to put this into action.

McDermott said if the bill is signed into law, the city will not rush to levy a tax. After all, graduation is this weekend.

He said the council and city staff will look at what the best rate is and does not think the tax will start at the maximum allowed $50 rate. If signed, the city council will take a look at the rate while formulating next year’s city budget.

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“I don’t want to just throw an arbitrary number out and say this is what the fee is going to be,” he said. “I think we need to do an analysis of what the services cost and what would be the appropriate fee to set. So, that’s going to take some work on city staff’s part to see where we want to put that number out.”

At its maximum rate, the city could pull in $2.4 million, which is about a 8% increase in revenue. Utility payments make up 75% of the city’s revenue. It has already hiked property taxes by 7.5% for the 2024-25 budget.

UD’s economic output is indelible. Blue Hens contribute more than $3 billion annually, according to a report in 2022. Despite its output for the city and state, the city only collects around $180,000 from the university annually from deals made in 1965 and 2002.

In an emailed statement to The News Journal on May 23, UD said it shares an interest in Newark’s improvements, financial viability and strength, and that the city’s issues with rising costs reflect its own problems. UD’s focus remains on access to its education.

“We prepare students, including thousands of Delawareans, for success in their professions, communities and beyond,” the university said in its statement. “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.”

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



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Delaware

Delaware will save more than $300M after federal tax decoupling takes effect

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Delaware will save more than 0M after federal tax decoupling takes effect


The fiscal year 2027 forecast remained relatively flat from the October meeting. But some expenses declined, including salaries for teachers. Brian Maxwell, state director of Management and Budget, said teacher salary expenses were down because student enrollment has dropped. He said federal immigration policy could be impacting the state’s Multilingual Learners.

“Obviously, there have been a number of students that may not be showing up to class just because of the enforcement of [Immigration and Customs Enforcement],” he said. “So some of the families may be scared to actually send their kids to school.”

Maxwell said overall enrollment is down, but the number of students needing special education services is up. The next student count is in February.

DEFAC members also discussed the revised Healthcare Spending benchmark. In September, the subcommittee devised a methodology that only used healthcare inflation, resulting in a 7.13% for 2026.

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“We all gathered in October and there was a fair amount of concern with that outcome,” said Christen Linke Young, director of Health and Social Services. “So the subcommittee reconvened earlier this month to consider a new approach.”

After adopting the methodology using expected national inflation data and a three-year measure of health care cost growth, the benchmark now sits at 4.9%. But Young said there would be no penalty for hospitals exceeding the guideline.

Gov. Meyer and the state’s largest nongovernmental employer, ChristianaCare Health System, reached an agreement earlier this year in a lawsuit the regional hospital system filed last year. The Diamond State Hospital Cost Review Board was created by lawmakers in June 2024 to try to rein in hospital spending. But the agreement, which requires new legislation and the governor’s signature, would strip the board of its authority to approve and modify hospital budgets.



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Snow melting soon as Delaware warms after icy blast

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Snow melting soon as Delaware warms after icy blast


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Delaware may have seen its first snowfall of the season, but it won’t stick around for long.

Despite below freezing temperatures Dec. 15 and Dec. 16, it’s possible that by the weekend there won’t be a trace of snow.

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Here’s what to know about this week’s weather and snow melt.

When will the snow melt away?

While Delaware will face freezing temperatures Dec. 15 and Dec. 16, the National Weather Service forecast is calling for a warmup starting on Dec. 17. Here’s the forecast:

New Castle County

Cold weather will continue this evening and into Dec. 16 with lows dropping into the teens. The county will hit 32 degrees on Dec. 16 before dropping to 22 that night. Temperatures start climbing into the low 40s with partly sunny skies on Dec. 17. Highs will hit 51 degrees on Dec. 18. If most of the snow hasn’t melted by that point, it should be gone after rain goes through the area during the overnight between Dec. 17 and Dec. 18. Highs will remain above freezing, hitting 44 on Dec. 18.

Kent County

Lows will drop into the teens overnight before climbing above freezing on Dec. 16. On Dec. 17, Kent County will see partly sunny skies with highs in the upper 40s. It will be mostly cloudy on Dec. 18 with highs hitting 55. There’s a 90% chance of rain during the overnight hours into Dec. 19. The 19th is looking mostly cloudy with highs reaching 47.

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Sussex County

After lows hit 19 during the overnight tonight, the high for Dec. 16 will be 38 degrees with sunny skies. Any snow in the southern part of the state will vanish Dec. 17 and Dec 18. Both days will feature sunny skies with highs reaching the low 50s on Dec. 17 and almost hitting 60 on Dec. 18.

What is black ice?

Despite the warm up, overnight temperatures are expected to be below freezing. If you are driving at night, you’ll need to watch out for black ice.

According to The Weather Channel, black ice is a thin layer of ice that forms on roads and is difficult to see. It’s generally found on bridges, overpasses and spots on the road shaded by trees or other objects.

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If roadways are wet from rain, snow or fog and temperatures drop below 32 degrees, black ice can form on roadways.

If you hit black ice, you should do the following:

  • Keep your steering wheel straight.
  • Do not brake
  • Take your foot off the accelerator to reduce speed



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Delayed openings in Delaware: What schools are starting late?

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Delayed openings in Delaware: What schools are starting late?


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Potentially icy road conditions have led every public school in Delaware to announce delayed openings for Dec. 15.

Every public school is operating on some sort of delay, most of which are two hours. The Delaware Department of Transportation already sent out a warning about treacherous driving conditions. Whatever has not dried from the Dec. 14 snowstorm will freeze over as temperatures plunge into the 20s and winds kick up over night.

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The following school districts have announced delays.

New Castle County

  • Red Clay- 2 hours
  • Christina- 2 hours
  • Brandywine- 2 hours
  • Colonial- 2 hours
  • Appoquinimink- 2 hours
  • New Castle County Vo-Tech- 2 hours

Kent County

  • Smyrna- 2 hours
  • Capital- 1 hour
  • Lake Forest- 2 hours
  • Polytech- 2 hours

Sussex County

  • Milford- 2 hours
  • Woodbridge- 2 hours
  • Cape Henlopen- 2 hours
  • Laurel- 2 hours
  • Seaford- 2 hours
  • Delmar- 90 minutes
  • Indian River- 2 hours
  • Sussex Tech- 2 hours

(This story was updated to add a photo gallery.)



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