Civil Unions to Bring an Economic Shot in the Arm to Delaware?

As the economy has been sluggish to rebound from a severe slump, areas around the country where marriage equality has become the law of the land have pinned their hopes on gay and lesbian families bringing tourism and spending to local vendors and other businesses. Where marriage equality has flickered and then been quashed by anti-family equality forces, those hopes for an economic boost have been dashed.

Somewhere in between marriage equality and a punishing refusal to permit recognition and protections for gay and lesbian families lay civil unions. In a nation where recognition and acceptance of same-sex couples is at a premium, even states that extend civil unions but fall short of offering marriage equality might hope to generate revenue, the theory being that rights-starved families will flock from around the state--and elsewhere--in order to celebrate their lifelong bonds of commitment.

So it is in Delaware, where civil unions will become the law of the land as of Jan. 1, 2012 and where wedding planners are preparing for what they hope will be a bonanza, DelmarvaNow.com reported on May 29.

The article profiled life partners and businessmen Chris Beagle and Eric Engelhart, who have launched C. U. in Rehoboth to provide for the needs of those within the state--or from outside--seeking to solemnize their unions.

"Just like a wedding for a straight couple, the spending is about to begin, adding to the $86 billion-a-year wedding industry in the U.S.," the article noted. "And since Rehoboth Beach is already a wedding destination and home to a large gay and lesbian population, the unions could be a boon for beach businesses."

In other states, money is being raised and spent to attack gay families. One example is Minnesota, where lawmakers have flung open the door to a year and a half of what may well become shrill and ugly controversy by approving a ballot initiative to change the state constitution, lest same-sex couples one day gain the right to marry through legislative or judicial means. But though anti-gay initiatives may bring money into a state for a short time during an intense campaign--as happened in California during the bitterly divisive Proposition 8 campaign, which saw unprecedented levels of spending--the funds stop after Election Day.

Not so weddings. Though history indicates that there is a spike in marriages or civil unions once the floodgates are opened, the numbers soon settle down and a steady stream of couples make their way to the altar, spending all the way. All things considered, allowing families to be families makes for a more sustainable business model.

Indeed, the business world has been an early adopter when it comes to GLBT equality, with corporations like Levi's and Microsoft leading the way--while governments, including the federal government, which does not offer any recognition to same-sex families under the anti-gay 1996 "Defense of Marriage" Act, too often lag behind.

The reason? The bottom line. Like anyone else, gays have money to spend, and the social stigma of being gay--and marketing to that demographic--is fading fast. Gays are known for spending on travel, clothing, and electronics, but there's no reason not to suppose that, if given a chance, they won't also shell out for weddings, just as straight families do.

"The civil unions law will boost the economy here in downtown Rehoboth, for sure," the head of the business group Rehoboth Beach Main Street, Jenny Berger, said.

"I'm sure restaurants, florists and gift shops are going to see a bump," said Fay Jacobs, who used to hold Berger's position with the local business group. "And for me, this is one of the smart reasons for Delaware to do what it did," added Jacobs, who traveled to Canada in 2003 to marry her female life partner of nearly 30 years.

"For me it was always about equality and the recognition of a loving relationship and never about an economic advantage," said Pete Schwartzkopf, a Democrat from Rehoboth who serves as the State House Majority Leader. "But there is an economic boost, whether it's here or another part of the state."

A 2009 report in the New York Times reported on how same-sex couples pay disproportionately for taxes and other expenses, shelling out considerable more than heterosexual families do over the course of their shared lives. The economic calculus of civil unions and marriage equality is not blind to the fact that equality also costs something.

The DelmarvaNow.com article reported on what a Charles R. Williams Institute on Sexual Orientation Law study had to say on the matter. "The report estimated 750 couples would enter into civil unions over the first three years, costing the state $1.1 million from decreasing the tax burden on same-sex couples and increasing public employee benefits spending," noted the article.

"The State will see savings in expenditures on state means-tested public benefit programs, and an increase in state license fees and spending and tourism revenues," the report, titled "The Impact of Creating Civil Unions for Same-Sex Couples on Delaware's Budget," forecast. "These savings will be outweighed by losses in estate tax, income tax, and transfer tax revenues and increased expenditures on state employee benefits.

"The annual effect is a tiny fraction--on average a mere one hundredth of one percent--of the State of Delaware's annual $3.3 billion budget over three years."

Tiny to a state budget, perhaps, but huge to the families taking advantage of the change in the law--and the businesses ready to cater to them.