Welcome to The Press Room, a weekly roundup of the major stories and happenings of the 2023 Delaware legislative year.
This week’s edition focuses on a tax relief bill, a Fox News trial update andhow state retirees’ health care plan will likely be extended as litigation continues.
As always, send story tips, feedback, ideas or gossip to me at mnewman@delawareonline.com.
Follow me on Twitter at @MereNewman.
House lawmakers pass tax relief for middle-class Delawareans
The House of Representatives last week passed a bill that is expected to provide tax relief to tens of thousands of Delawareans.
Lawmakers say the legislation would help middle-class residents pay fewer taxes by increasing the standard deduction to $5,700, an increase of 75%. It would be $11,400 for those filing jointly. State officials have said this would start showing up in people’s paychecks in 2024.
READ MORE:Raises, education and housing: 5 things to know about Delaware Gov. Carney’s spending plan
The bill would also increase the refundable earned income tax credit to 7.5%, with the goal of helping lower-income Delawareans with children.
Gov. John Carney first announced this tax relief proposal at the start of this year when he unveiled his recommended budget for fiscal year 2024. The goal of the tax policy, Carney said, was to incentivize people to work.
The legislation now heads to the Senate, where it is expected to pass. The General Assembly returns from its Easter break on April 25.
Wilmington: A place to be a witness
It’s become increasingly likely that Fox Chairman Rupert Murdoch could testify in the upcoming $1.6 billion defamation lawsuit against Fox News and its parent company.
Superior Court Judge Eric Davis said in a pretrial hearing last week that Murdoch and his son Lachlan, who is CEO of Fox Corp., could testify if Dominion files a trial subpoena to compel them.
DOMINION V FOX:Delaware judge won’t stop Rupert Murdoch from being called to testify in Fox News case
The judge said he would not quash a hypothetical subpoena because both parties have made these witnesses “very relevant” to the case. Dominion, in pretrial court filings, has argued why they believe it’s important for Murdoch to testify on the stand.
The trial is scheduled to begin Monday, April 17, with the final pretrial hearings and jury selection happening this week.
Litigation around state retirees’ health care continues
State retirees’ health care plan, Medicfill Supplement, is expected to extend to 2024 due to ongoing litigation.
A group of retirees, who formed RISE Delaware, filed a lawsuit in the fall seeking to block the state’s plan to transition their health care plan to Medicare Advantage. State officials said this would decrease the state’s ballooning unfunded liability, yet retirees feared they might be denied care under a new plan.
The lawsuit argued Delaware officials failed to follow administrative procedures when implementing the change, specifically by not allowing retirees to offer input. A Superior Court judge ordered in October for the transition to be temporarily blocked, with a trial being held at a later time to make a final determination on the future of the Medicare Advantage plan.
BACKGROUND:Judge temporarily blocks Delaware from changing state retirees’ health care plan
Last week, the Delaware Supreme Court denied an appeal from the state, which sought to overturn the temporary block. The appeal stemmed from a Superior Court order in February that denied RISE Delaware’s application to cover attorney’s fees.
Supreme Court Justice Gary Traynor wrote in his decision that the Superior Court’s February decision was not a final order and therefore cannot be appealed.
The state extended the Medicfill plan to last until the end of 2023, following the October court ruling. Because litigation continues, the State Employee Benefits Committee is set to further extend the current retiree health care plan at its April 24 meeting.
