Former state senator tells A Better Discussion that controlling spending, reducing regulation and rebuilding Delaware’s private-sector economy should be priorities
WILMINGTON, Del. (Aug. 9, 2026) — Delaware can strengthen its economy, but doing so will require policymakers to control government spending, reduce barriers to private investment and pay closer attention to how state policies affect businesses, workers and taxpayers, former state Sen. Charlie Copeland said during an Aug. 3 live webcast.
Copeland joined Jane Brady, former Delaware attorney general, chair of A Better Delaware and host of A Better Discussion with Jane Brady, for a wide-ranging examination of Delaware’s economy, government spending, taxation, regulation, housing and education.
Both argued that decisions made in Dover have consequences that extend well beyond the state budget.
“Policies that the state adopts do matter,” Brady said. “They matter for every one of us.”
Copeland, a businessman and former Republican state chairman, argued that Delaware’s economic problems are significant but reversible.
“You could fix Delaware in a year,” Copeland said. “But what it takes is leadership.”
Government spending outpaces economic growth
Copeland traced what he described as a long-term acceleration in Delaware government spending.
He said state spending historically grew at roughly 2% annually before increasing to more than 4% as Delaware benefited from the growth of credit card banking, abandoned property revenue and legalized gambling.
Federal assistance during the COVID-19 pandemic helped push spending growth even higher, he said.
Copeland argued that while much of the federal money was temporary, higher levels of state spending became embedded in the budget.
“The general fund is now built on an annual 5% increase,” Copeland said.
Brady agreed that Delaware used large surpluses and federal assistance without developing enough of a long-term strategy for what would happen when the extraordinary revenue disappeared.
“We literally had $3 and $4 billion surpluses that we expended,” Brady said. “We spent it all. A lot of it we cooked into the base budget.”
She said some money went toward capital improvements, including schools, but questioned whether policymakers adequately planned for the long-term consequences of expanding recurring programs while temporary revenues were available.
Where is Delaware’s next growth industry?
Copeland said the spending issue becomes more concerning when compared with what he characterized as a stagnant private-sector economy.
He pointed to the closing of Delaware’s automobile plants, DuPont’s contraction and restructuring and Bank of America’s acquisition of MBNA as important turning points.
Copeland recalled telling then-Delaware State Chamber of Commerce President Rich Heffron while serving in the state Senate that Delaware faced a fundamental economic problem.
“Delaware’s in trouble,” Copeland recalled saying. “We have no growing industry in the state of Delaware right now.”
He said the question Delaware still needs to answer is straightforward.
“What’s your vision for how you grow this economy?” Copeland said. “Well, there hasn’t been one.”
Brady echoed that concern, saying Delaware has experienced what she described as a “slow but steady process of deterioration” in the state’s interest in developing new businesses.
She distinguished between companies legally forming or incorporating in Delaware and companies actually putting employees, facilities and investment in the state.
“There are a lot of new business formations, but they’re not for businesses that are operating in Delaware, necessarily,” Brady said.
Incorporation is different from economic development
That distinction became one of the central themes of the discussion.
Delaware traditionally points to its dominance in corporate incorporations as one of the state’s major economic strengths. Copeland acknowledged the importance of that industry but said incorporation should not be confused with companies choosing Delaware as a place to employ people.
“How many of them are headquartered in Delaware?” Copeland asked. “In other words, this is where their headquarter staff is, this is where their offices are, this is where they hire people, this is where they operate out of. And the answer is, very few.”
Brady said increasing competition from other states makes that distinction even more important.
She pointed particularly to Texas, which has been aggressively positioning itself to attract financial and corporate activity.
“Texas has really declared war on anybody who wants to go into business,” Brady said. “They’re going to bring them in.”
She said competition can benefit the economy by forcing states and institutions to innovate but warned that Delaware cannot take its historic advantages for granted.
Copeland agreed.
“Texas has made a very aggressive move,” he said, arguing Delaware is simultaneously making it more difficult for businesses to operate.
Making Delaware ‘open for business’
Asked what Delaware could do differently, Copeland said the state should begin with a clear message to employers and entrepreneurs.
“Delaware’s open for business,” Copeland said. “Get the regulatory guys off their backs.”
Copeland said a governor should personally contact businesses considering expansions and make the case for locating jobs in Delaware.
He also called for more government services to be moved online, greater use of technology and greater scrutiny of state positions and regulatory requirements.
His broader argument was that government does not need to create economic growth itself.
“There are these people that have agency and are going to make good decisions, and they’re going to grow it on their own because incentives matter,” Copeland said. “And if you get out of their way, it’s going to happen.”
Brady said the experience of businesses should receive more consideration when lawmakers make decisions affecting employers.
She said many decisions involving business finances and operations increasingly are being reviewed or influenced by people in government who may have limited experience operating businesses themselves.
That disconnect, she argued, can produce policies with unintended economic consequences.
A different view of government’s role
Not everyone agrees with Brady and Copeland’s prescription. Karl Stromberg, a leader of Delaware’s Working Families Party, has argued that higher taxes on wealthier residents and corporations can generate additional revenue for public priorities rather than necessarily driving investment away. Stromberg also supports changes to Delaware’s judicial and Court of Chancery system that he believes would make corporate governance more accountable to citizens and shareholders, and he favors a larger government role in housing policy to expand affordable options for lower-income families. Those positions reflect a different view of the same challenges: that stronger public investment, greater corporate accountability and more direct government involvement can improve economic opportunity rather than impede it.
Housing shortage highlights regulatory debate
Housing offered a practical example of the broader debate over regulation.
Copeland pointed to large parking lots and single-story retail developments near New Castle County Airport and suggested changes in land-use rules could allow residential units to be constructed above existing commercial properties.
“We’ve got plenty of place to put” housing, Copeland said, arguing that relatively modest changes to development codes could encourage private investment.
“If you get government out of the way, the incentives are there for private sector developers to put in affordable housing all over the place,” he said.
Brady questioned whether policymakers have sufficiently defined what they mean when discussing “affordable housing” and said the cost of regulation ultimately reaches consumers.
She returned to that point at the conclusion of the webcast.
“How much it costs the regulators, costs builders to build new homes affects anybody who wants to buy a new home,” Brady said.
Taxes and the competition for residents
Taxes also emerged as a major concern.
Copeland said continued government spending growth will eventually increase pressure to find additional revenue.
He warned that substantially higher income tax rates could change the calculations made by business owners and higher-income residents about where they live and invest.
“Once you start adding numbers on top, you start competing with New York and California,” Copeland said.
Because Delaware is geographically small, he said residents can relatively easily establish themselves elsewhere while businesses can direct future investments to other states.
He cited Delaware’s former estate tax as an example, arguing that some wealthy residents shifted their primary residences to states such as Florida.
“People don’t grow stupid overnight, and incentives matter, and they’re gonna make rational decisions,” Copeland said.
Brady said she personally knew several people who changed their residency during the period Delaware imposed the estate tax.
The two argued that policymakers should consider not simply how much revenue a new tax might theoretically generate, but whether it changes the behavior of the people being taxed.
Work, incentives and the safety net
Brady and Copeland also discussed labor-force participation and the relationship between public benefits and employment.
Copeland argued that government assistance should function as a safety net while preserving incentives for able-bodied people to enter the workforce.
Brady said the issue goes beyond government finances.
She argued that work provides people with a sense of productivity and personal accomplishment that government programs cannot replace.
“There’s benefits to working,” Brady said, adding that government policy can overlook “that human component.”
Copeland agreed, saying work can provide “a certain sense of self-esteem, self-worth” and personal value.
The two also acknowledged that reducing benefits after they have become embedded in household finances would be difficult.
Copeland said abruptly withdrawing assistance could create serious consequences for housing, food security and nonprofit organizations serving families.
“You have a serious transition cost that’s staring the state in the eye,” he said.
Education is economic policy, too
The discussion eventually turned to Delaware schools, with both Brady and Copeland arguing that education should be viewed as part of the state’s economic strategy.
Copeland said businesses consider workforce quality when determining where to invest and said Delaware’s education system requires significantly stronger action.
“I would declare a state of education emergency,” Copeland said.
He argued that years of incremental changes have not produced sufficient results and called for greater leadership and accountability.
Brady pointed to Mississippi’s improvement in student reading performance and said Delaware should be willing to consider policies that have produced measurable improvement elsewhere.
She argued that new education spending should be accompanied by specific accountability measures and measurable expectations for student improvement.
Brady: Policy choices matter at the ballot box
Brady ended the program by connecting the economic discussion to the elections Delaware voters will face this year.
She urged voters to look beyond political mailers and advertising and examine what candidates actually propose to do about spending, regulation, education, housing and economic development.
“It’s critical that we make good decisions about who we choose to govern us, because those policies matter,” Brady said.
The broader message from Brady and Copeland was that Delaware’s economic future is not predetermined.
Their argument throughout the webcast was that decisions made by governors, legislators and regulators influence whether businesses invest, whether people work, how much housing costs and ultimately how much government can afford.
DELAWARE LIVE TO GO
What: A Better Discussion with Jane Brady
Presented by: A Better Delaware
Host: Jane Brady, former Delaware attorney general and chair of A Better Delaware
Format: Weekly live webcast examining Delaware government, public policy, business, education, the economy and other issues affecting residents
When: Mondays at 8 a.m.
Aug. 3 guest: Former state Sen. Charlie Copeland
Why watch: Brady brings Delaware policymakers, business leaders and subject-matter experts into a weekly conversation about the decisions being made in the state and how those decisions affect Delaware residents.
DPP separately operates on a $3.1 million budget supported by the state Bond Bill and private-sector investments.
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