Legislature OKs casino bailout as session ends

• State spending on roadway infrastructure is now set to fall to %24155 million
• Lawmakers work past midnight each June 30 to open the new fiscal year.

DOVER – Lawmakers passed a $9.9 million measure to bail out the state's three casinos during the early hours of Tuesday, bringing the year's six-month legislative session to a close.

The legislation passed 27-10 just after 3 a.m. after lawmakers struggled with a last-minute amendment that could have jeopardized the deal.

The amendment would have required the casinos to give back any state money they receive if they lay off more than 3 percent of their workforce. But the measure was scrapped because the restriction could have worked against agreements between the banks and casinos; with a result of layoffs anyhow, said its sponsor, Rep. Dennis E. Williams, a Talleyville Democrat.

"By putting this restriction in place, the bank could then slam the hammer down on them and say, 'You must do certain things'," he said. "Then they'd be required. Even if they didn't want to, they'd have to."

Lawmakers early Tuesday took final votes on the state's $421 million capital budget plan for the fiscal year that begins Tuesday and a flurry of other bills.

The capital budget, which passed unanimously through the House and Senate, included a stripped-down roadway infrastructure program, with Gov. Jack Markell and lawmakers using $40 million that would typically pay for road and bridge improvements to cover higher costs in the state's $3.8 billion operating budget. Lawmakers approved the operating budget last week. Markell signed both budget bills about 4 a.m.

State spending on roadway infrastructure is now set to fall to $155 million, aided only by a deal this month to raise tolls along Del. 1 and to authorize $20 million in new debt.

Lawmakers ended the session without approving Markell's proposed 10-cent a gallon gas tax increase and a new property tax for a statewide water improvement program.

As he signed budget bills early Tuesday, Markell said he hoped lawmakers would continue to discuss ways to fund transportation infrastructure projects and waterway cleanup.

"Both of those efforts will create jobs and economic opportunity immediately and in the long term," Markell said.

The casino bill, backed by Markell, gives $9.9 million in taxpayer aid to the state's three casinos, which continue to struggle in the face of out-of-state competition.

The proposed amendment was not meant to kill the bill, but allay fears that the casinos would lay off workers even if they received taxpayer money.

Casino owners have warned of layoffs and a loss in service and revenue to the state in the absence of state assistance. But they made no promises to protect jobs if they received a bailout.

The other part of the legislation shifts the way the casinos and state share the cost of running slot machines. That change comes into effect next summer and recurs every year after.

"This is really the second Band-Aid … it's a little better of a Band-Aid because it makes a permanent change," said Sen. Brian Bushweller, a Dover Democrat and the legislation's sponsor. "But still it is a Band-Aid in the sense that it is not a permanent solution to the problem and I still think there is an understanding that we need to come up with that permanent solution."

Lawmakers work past midnight each June 30 to open the new fiscal year and this year's debates continued until about 3:30 a.m. The marathon final session normally includes debate on a parade of bills, some routine, many controversial.

Senators gave final approval Monday night to legislation requiring anyone in Delaware convicted of driving under the influence to install an ignition interlock device that would prevent cars from starting in the event they had been drinking.

The interlock measure is expected to cost the state $150,000 in new system upgrades in the new fiscal year and an ongoing cost of $102,400 annually to fund three new positions to administer the program. The measure now goes to Markell for his signature.

Lawmakers also sent bills to Markell's desk establishing a Fort DuPont Redevelopment and Preservation Corp. to study the redevelopment of the Fort DuPont complex near Delaware City; providing relief to state ambulance services with a new fee on driving offenses; and authorizing police officers to carry and use the overdose-reversing drug naloxone.

The state's peace officers can opt into a naloxone program run by the state Department of Health and Social Services and upon completion will receive the drug, which can be administered by a nasal spray. An amendment attached to the legislation provides immunity to officers, and doctors who prescribe naloxone under the program.

A number of measures did not make it through the General Assembly session.

Rep. Helene Keeley's effort to decriminalize possession of small amounts of marijuana will have to wait until next year, despite a surprise last-minute appearance on the state House agenda. The measure was not debated on the Legislature's final day.

Because lawmakers are completing a two-year session, Keeley will have to re-introduce the legislation when lawmakers return to Dover in January. Another effort to repeal Delaware's death penalty also officially failed early Tuesday with the close of the two-year General Assembly session.

Contact Jonathan Starkey at 983-6756, on Twitter @jwstarkey or at jstarkey@delawareonline.com.

Contact Jon Offredo at (302) 678-4271 or at joffredo@delawareonline.com or on Twitter @jonoffredo.