Cape Gazette (Published on July 25, 2011)

By Kara Nuzback

Rehoboth Beach, DE — Chip Flowers ran for the office of state treasurer on a platform of change. Now six months into his term, Flowers told members of the Rehoboth Beach-Dewey Beach Chamber of Commerce about the progress he’s made to improve Delaware’s economy.

Flowers spoke at the chamber’s monthly meeting July 13 at Kings Creek Country Club in Rehoboth Beach. Chairman of the Board Matt Turlinski introduced Flowers to about 40 chamber members. “Chip brings a fresh perspective on the financial issues facing Delaware,” Turlinski said.

Flower ascended to the podium of a small conference room overlooking Kings Creek Golf Course. He energetically talked about his first six months in office against a backdrop of recession, a tsunami and spikes in oil prices. “It has not been a typical environment to say the least,” he said.

Despite obstacles, Flowers said he has worked to redefine the state treasury and make the office more relevant and useful to Delawareans. “People obviously wanted to know more about the treasury,” he said.

Flowers said his administration revamped the Treasury Department website, which now provides information in real time. “We want to make sure we’re on top of things,” he said.

Flowers’ Early Warning System evaluates the state economy every 60 days and posts a color-coded rating on the website for residents and businesses to stay abreast of where Delaware’s economy stands compared to the national average. “Just because the national economy is doing bad doesn’t mean the Delaware economy is doing bad,” Flowers said.

The website provides information on regional unemployment rates, state investments and educational resources to help Delaware residents and businesses make informed financial choices. “When people make a bad financial decision, we all pay for it,” Flowers said.

The website also details a number of initiatives to improve the state’s economic climate. Flowers said he created the Office of Economic Policy, where he funds two young fellows using his personal salary. The office researches ideas and develops programs and initiatives to strengthen Delaware’s economy.

Flowers said the Support Delaware Initiative would mean the office only invests in businesses that plan to make an investment in the state and employ Delawareans.

The Delaware Money in Delaware Banks Initiative aims to put state funds in Delaware banks, so the banks can lend more money to small businesses, allowing them to hire more employees. “Why are we dumping your taxpayer money into another state so they can invest it?” Flowers said.

Out of $2.2 billion in state funds, a significant amount is invested in out-of-state banks, Flowers said. Under the initiative, he said he plans to start by relocating $250,000, and he hopes to increase the amount over time.

Jayne Armstrong, director of Delaware Small Business Administration, asked Flowers about his proposed Small Business Economic Recovery Program. Flowers said he worked with the Massachusetts Treasurer’s Office to develop the program, which would have invested $2 million in Delaware banks to allow the banks to lend the money to small businesses and aid in recovery from the recession.

Flowers said Delaware Cash Management Policy Board refused to implement the program because the board thought it was too risky. Massachusetts implemented the program, and it has been a major success in the state, Flowers said. “Now Delaware small businesses have to compete with Massachusetts small businesses,” he said.

Flowers said he realizes some changes will be difficult to make, but he will keep proposing ideas to put more money into the economy and create jobs. “They can’t say no to them all,” he said.

After the speech, Flowers received praise from chamber members. Dewey Beach Mayor Diane Hanson thanked Flowers for his interest and dedication to getting Delaware’s economy on track. Chamber President and CEO Carol Everhart said if she is the enthusiast for Rehoboth and Dewey Beaches, Flowers is the enthusiast for Delaware.

To view the Delaware State Treasury website, visit treasury.delaware.gov.

For the original article, please visit here.

Wilmington, Delaware – On Thursday, June 2, State Treasurer Chip Flowers will address the Eastern Sussex Democrats in Lewes, Delaware at Bethany Blues, beginning at 11:30am.  For more information, go to www.esdemocrats.blogspot.com.

Wilmington, Del. – On Thursday, May 26, State Treasurer Chip Flowers gave the keynote address to the Delaware League of Local Governments.  Flowers provided key insights on the Delaware State Treasury, included a detailed analysis of the “Delaware Money in Delaware Banks” initiative and its benefits to Delaware’s local governments.

The Delaware League of Local Governments (DLLG) is a statewide, nonprofit, nonpartisan association of city, town, village, and county governments established in 1963 to improve and assist local governments through legislative advocacy at the state and federal levels. In addition, the League serves as a clearinghouse for important governmental and community-oriented information.  The League serves all 57 Delaware municipalities as well as the state’s three counties.

Delaware Treasury to deposit more funds in Delaware banks

Deposits would be made into FDIC-insured savings accounts or CDs

DOVER—Delaware State Treasurer Chip Flowers Jr. today signed a directive that aims to increase the number of Delaware banks holding state deposits.  Under the directive, a significant number of newly qualified Delaware banks would be eligible to receive state funds totaling $5 million to $10 million.

The directive, which follows the guidelines of the state’s Cash Management Policy, calls for depositing up to $250,000 in any qualified FDIC-insured Delaware bank that has an active banking presence in the state, Flowers said. The funds would be deposited in savings accounts or certificates of deposit that are paying a rate of return equal to or higher than the rate the state is currently receiving on similar deposits, he said.

Flowers estimated that 15 to 20 Delaware banks in all three counties could participate in the program.  A total of $5 million to $10 million would be transferred into those banks under the initiative.

“Putting Delaware’s money in Delaware banks benefits the state in several ways,” Flowers said.

By spreading deposits over a large number of banks, the plan increases the diversification of state funds, and therefore increases their safety, Flowers said. By making deposits in federally insured savings accounts or CDs, the state will increase its revenue without putting any of its funds at additional risk, he said.

More importantly for Delaware residents and businesses, Flowers said, placing money in Delaware banks will make more funds available for Delawareans who seek loans to improve their lives, including helping Delaware families purchase a home, buy a car or assist in other expenses or provide small businesses with money to expand their operations.

“We are beginning this program with modest deposits, but I believe that our state should show its support for those financial institutions that have chosen to locate in Delaware and that are making an effort to help Delawareans achieve financial security in their personal and business lives,” Flowers said.

“Not only will the Delaware State Treasury continue to manage the state’s deposits prudently, it will also seek out safe and innovative opportunities to increase rates of return and improve the overall financial well-being of both the state government and all Delawareans,” Flowers said.

To assist in that effort, Flowers today named Fred C. Sears II as the head of a volunteer Treasury Advisory Council that will evaluate innovative financial ideas in a nonpartisan manner. Sears, of Wilmington, is president and CEO of the Delaware Community Foundation and former president of Commerce Bank/Delaware. Other members of the Advisory Council will be named by Sears and other Council members, Flowers said.

In addition to Sears, joining Flowers at the press conference today were Mr. Michael McFarland, Regional Vice President, TD Bank; Mr. Richard Welsh, Senior Vice President, Wells Fargo Bank; Ms. Jayne Armstrong, District Director, U.S. Small Business Administration;Deputy State Treasurer Erika Benner and Mr. Zafar Chaudhry, Director of the Office of Finance and Treasury Services.

Wilmington, Delaware – Delaware State Treasurer released the following special public message today, “Thank you for all of the emails, letters and calls supporting your Treasury’s effort to put Delaware money in Delaware banks for Delaware businesses and families! Change is not easy for the “old guard”, but with your help, we will ensure that your money is in Delaware banks to get our economy moving. Again, thank you and our journey to restore prosperity together continues. I hope you and your family have a safe holiday.”

Wilmington, Delaware – Delaware State Treasurer Chip Flowers will be interviewed by Allen Loudell on WDEL at 4:30pm, Wednesday, April 20, 2011. Please tune in and listen to Treasurer Flowers discuss the Delaware State Treasury’s Small Business Economic Recovery Program that seeks to put Delaware money in Delaware banks to support Delaware businesses and families!

Dover, DE — State Treasurer Chip Flowers and the Delaware State Treasury, under its newly created Office of Economic Policy, today released the “Delaware Economic Index,” an easy-to-use summary of key state economic data. The index rated the state economy as ‘fair’ over the past sixty (60) days.

The index consists of figures and observations on unemployment, housing, consumer confidence, interest rates, state spending and private sector business action in Delaware. The data was gathered from a variety of federal, state and private sources. The “Delaware Economic Index” also implements a color-coded financial early warning system that characterizes the state economic climate over the past 60 days as viewed by the Delaware State Treasury. To view a copy of the index, please click here.

Wilmington, Delaware – It was an exciting week for Treasurer Flowers and the Delaware State Treasury! Treasurer Flowers presented a revised budget for the office to the Joint Finance Committee and issued the First Report on the Delaware State Treasury! To view photos of the budget hearing, please click here! To read a copy of the report, please click here.

Report highlights DST’s strengths, deficiencies, initiatives

DOVER — State Treasurer Chip Flowers today issued his first Report on the Delaware State Treasury, an eight-page document that outlines the strengths and deficiencies of the office he took over in January as well as accomplishments during his first month in office and plans for the future.

“This report will help residents of the state understand what the Delaware State Treasury does, and how it will change so we better confront not only today’s economic challenges, but also the complexities of the 21st-century global economy,” Flowers said.

“In this new era, the old rules and ways of viewing the role of our state government, in particular the Delaware State Treasury, will paralyze our ability to succeed,” Flowers wrote in the report. “We must not fear new ideas and change; rather, we must embrace these concepts with openness and caution.”

Flowers issued the report at the budget hearing for his office conducted by the General Assembly’s Joint Finance Committee.

In the report, Flowers identified four key strengths of his office, which he refers to as the “People’s Treasury.” Those strengths are: a strong team of 23 employees; engaging in sound financial practices; delivering high-quality customer service to state agencies, vendors and the public; and sponsoring financial education initiatives for state employees and Delaware residents.

Among the deficiencies noted in the report were: reconciliation issues within a new statewide accounting system; insufficient technology and equipment for the office; insufficient personnel due to budget reductions in recent years; insufficient use of financial assets to promote financial growth and a shortage of substantive relationships with Delaware businesses and external financial and economic agencies.

The report pointed out that Flowers has already remedied two deficiencies by redefining the mission of the Treasury and creating a new organizational structure.

The Treasury’s new mission, the report stated, “is to restore economic prosperity to the First State by providing critical financial services for the People of Delaware.” The new organizational structure establishes four distinct offices within the Treasury: Executive, Finance and Treasury Services, Disbursements and Reconciliations and Economic Policy.

Flowers identified 13 initiatives for the Treasury and labeled five of them as completed, including the redefined mission and the new organizational structure.

Other initiatives completed during the first month of his term were: creation of the Office of Economic Policy, creation of the Office of Finance and Treasury Services and implementing the Delaware Economic Index and Delaware Early Warning System. The first Economic Index was issued on Feb. 3; the index will be updated six times a year.

Initiatives Flowers plans to implement include:
• Officially renaming the Office of State Treasurer as the Delaware State Treasury;
• Implementing a small business investment program to spur economic growth and job creation;
• Creating an economic targeted investment program to invest state funds in safe financial instruments that underlie Delaware projects;
• Using technology to modernize Treasury operations;
• Developing a new marketing outreach program focused on savings, investments and entrepreneurship;
• Strengthening efforts to reduce the number of checks issued by the state; and
• Establishing and improving relationships with federal agencies.

The full text of the First Report on the Delaware State Treasury is available on the Delaware State Treasury website at treasurer.delaware.gov.