Delaware Democratic State Treasurer Candidate Chip Flowers received a recommendation of endorsement from members of the 9^th Representative District.  The 9^th Representative District covers southern New Castle County (Odessa, Delaware City, Middletown and the Blackbird and Back Creek areas). 

Flowers said, “I am humbled to receive the endorsement recommendation of the 9^th Representative District and I am grateful for their support.  While our campaign remains focused on earning the support of every voter on election day, I look forward to working with all Democrats in the 9^th Representative District and throughout the state to restore prosperity to Delaware.”

The Young Democrats Movement (YDM) released the following press release to announce its endorsement of Chip Flowers for State Treasurer.

In such times of economic distress, the state needs, more than ever, a step in the right direction. Delaware needs a transformative, new approach to bring in revenue where it is lacking. Mr. Flowers’ plan includes creating three new offices in the Treasury, attracting more businesses to Delaware to create jobs, and working for the youth to keep young talent in-state. He looks to create tax credits for corporations hiring graduates of in-state high schools and colleges, thereby promoting the employment of Delaware’s youth. His goals also include developing a financial early warning system for the benefit of companies and consumers. Given his innovative proposals and dedication to the youth, the YDM feels Mr. Chip Flowers is the best candidate to ensure a new positive change in Delaware’s economic growth.

The YDM endorsed this candidate after its Executive Council met with each running nominee for a thorough conference discussing their positions and records.

The YDM started three and a half years ago to increase youth activism in Delaware politics.  The YDM has grown in both size and influence.  The YDM’s members have volunteered for dozens of campaigns and our organization has been featured on WHYY, WDEL, The News Journal, and several other media outlets.  The YDM is the official state chapter of the High School Democrats of America Caucus.

The YDM will be offering both a financial contribution and volunteer support to our endorsed candidates.

WILMINGTON, Del. – Chip Flowers, Democratic candidate for State Treasurer, today released his agenda for the office, “The Flowers Framework for Restoring Prosperity.”  The Flowers Framework seeks to strengthen Delaware’s financial future by offering a series of proposals aimed at creating jobs, promoting economic growth and saving taxpayer funds by revamping the state’s Treasurer’s Office. 

While the Flowers Framework contains 18 specific ideas to assist Delaware in competing in today’s 21st century global economy, it emphasizes four core themes: fiscal responsibility, economic growth and stimulating businesses, planning and forecasting and revamping our financial agencies.  The Flowers campaign released the framework on the anniversary of the inauguration of President Thomas Jefferson (March 4, 1801), since the framework is based upon many key concepts and principles offered by our nation’s founding fathers, specifically Jefferson and Alexander Hamilton.

“This framework is designed to create a 21st century treasurer’s office that will reshape the economic future of Delaware by offering new ideas that will create jobs, attract businesses and manage our money wisely,” Flowers said.  “Under the framework, our state Treasurer’s Office will become an integral part of the global financial and business community and advocate for policies that protect our industries and improve the lives of Delawareans.  Until we move beyond a state treasurer’s office that is limited to issuing debt and processing state paychecks, our state will be at a significant disadvantage in job creation and have no prominent role in shaping economic policy.

“In light of the current recession and the recently announced layoffs at AstraZeneca, this is not a time to govern our state finances by political ideology or opinion polls.  Rather, it is time to put forth ideas that are fiscally prudent and grounded in the principles that founded this great nation.  In doing so, I hope this framework will provide Delawareans with an opportunity to achieve new heights and fulfill their dreams of a better future,” Flowers said.  

Key proposals under the Flowers Framework include the following:

• Implementing a State Financial Warning System to serve as an indicator to state agencies to initiate cost-cutting measures at the start of an economic downturn to generate immediate cost savings;
• Establishing the Office of Finance and Investments and the Office of Economic Policy to develop short- and long-range economic and investment policies and products that will stimulate economic growth and create jobs;
• Creating the “Hometown” and “Excellence in Delaware” Tax Credits to combat the increasing number of Delaware graduates seeking employment outside the state and to attract the best and brightest talent to the First State;
• Strengthening the state’s relationship with the U.S. Treasury Department and the Federal Reserve to influence economic policymakers on major decisions impacting Delaware;
• Creating the Delaware Investment Fund to invest and loan public and private funds in an objective and fair manner to businesses in alignment with the state’s economic policies; and  
• Revamping the State Treasurer’s Office to ensure fiscal responsibility while fostering and promoting economic growth and job creation.

Flowers, who filed his candidate paperwork with the state Department of Elections earlier this week, is a resident of Middletown.  Flowers majored in economics at the University of Pennsylvania and received his law degree and a Masters in Business Administration from Georgetown University.  After earning his Masters of Public Administration from the John F. Kennedy School of Government at Harvard University, he founded the law firm, The Flowers Counsel Group, LLC, which specializes in advising Delaware businesses in corporate law.  Prior to attending Harvard, Flowers worked as a mergers and acquisitions attorney at the Wilmington office of Skadden Arps and in the White House Office of Political Affairs under President Bill Clinton.

NOTE: The Flowers Framework for Restoring Prosperity is available to the public at www.chipflowers.com/framework.

Last week, Governor Markell delivered to the General Assembly his State of the State address, entitled “Restoring Delaware’s Promise and Prosperity,” outlining his vision and ideas for the State of Delaware for the upcoming year. The Flowers for Treasurer campaign is pleased that Governor Markell and his administration have joined us in using “Restoring Prosperity” as the key message for Delaware at this critical time. As our campaign progresses, we look forward to working with the Markell Administration in developing and proposing innovative solutions that will restore prosperity to Delawareans.

By working together toward our common goal of restoring prosperity, we are confident that we will help Delawareans overcome our economic challenges and fulfill their dreams for a better tomorrow.

Also, if you have an opportunity, please read Chip’s Letter to the Editor published in today’s [01-25-10] News Journal regarding the decision to keep our Delaware Department of Finance, which is a major component in our campaign’s Restoring Prosperity agenda.

Take care and we hope you have a wonderful day.

Wilmington, Del. –  Today, the Flowers for Treasurer campaign filed its 2009 Year-End Campaign Finance Report with the Delaware Department of Elections, reporting a total of $87,198.50 in funds raised during  the final quarter of 2009, with $31,029 raised from contributions (excluding outstanding pledges from its “Chip in for Chip” fundraising program).  As of December 31, 2009, the campaign had a total cash on hand of $51,825.16.   The campaign held no fundraisers in 2009.

The campaign raised an additional $8,762 through its Chip in for Chip fundraising program.  The Chip in for Chip fundraising program allows individuals to make monthly installments to the campaign, thus giving more individuals an opportunity  to become part of the political process.  Though outstanding pledges are not required to be reported to the Delaware Department of Elections, the campaign has released the amount pledged through its Chip in for Chip fundraising  program in an effort to promote transparency and openness in its fundraising process.  Including the Chip in for Chip funds, the campaign raised a total of $95,960.50, with $39,791 raised from contributors.

Chip Flowers, Democratic candidate for state treasurer stated, “We had a great quarter with fundraising, and I want to thank all the individuals who support my effort to restore prosperity to Delaware.  However, understanding the current economic climate, I remain committed to limiting our fundraising activities and events so Delawareans can use their money on the needs of their families.”

Flowers further stated, “I’m humbled that we were able to raise our funds the ‘old fashioned’ way – by reaching out and talking to Delawareans and other individuals who believe in our mission of creating a new 21^st century treasurer’s office that will reshape the economic future of our state.”

Ravi Dattani, the campaign’s treasurer, stated, “The fundraising numbers reported by our campaign is a very good indicator that our restoring prosperity message is resonating with voters.  Many Delawareans are struggling and Chip’s message has inspired many people to become engaged in the process.  The treasurer’s office is a critical component in our state’s economic recovery and Chip’s restoring prosperity agenda has gained significant momentum across the state.”

As many of you know, I remain committed to my pledge to refrain from major public announcements and statements during the holiday season, as this period should be about family and loved ones, not political campaigns The following is a statement by Chip Flowers, candidate for the Democratic nomination for Delaware state treasurer, on the announced closing of the Valero refinery in Delaware City:

“As many of you know, I remain committed to my pledge to refrain from major political announcements and statements during the holiday season, as this period should be about family and loved ones, not political campaigns. However, due to the unexpected announcement of the closing of the Valero refinery and the significant loss to the state’s economy and revenue, as a candidate for state treasurer and a Delawarean, I feel it is necessary to provide comment on this unfortunate and unexpected event.

First, I express my heartfelt sympathies to the employees, families, businesses and those members of the Delaware City community that were impacted by the unexpected closing of the Valero facility. Like many Delawareans, my thoughts and prayers are with each of you during this holiday season. As we experience another reminder that our nation’s worst recession since the Great Depression has exacted a heavy toll on our state, I commend the Markell Administration and the members of the General Assembly for responding to this unfortunate event with the full resources of our state government. I am committed to assisting our policymakers through these troubled waters. We must work together in charting a sound economic course for our state.

This morning and throughout the day, in addition to speaking with some families impacted by the Valero closure, I met with senior members of our campaign team to discuss policy recommendations surrounding the closing. To this end, I have requested that my campaign, when possible, release policy considerations for lawmakers and the public to review when major events impacting our state economy occur.  Traditionally, campaigns do not release policy recommendations, lest they be criticized by their opponents, but due to the current challenges facing our state, I am willing to assume such risks in order to put forward ideas that may help those individuals impacted by the Valero closing.

Below is a list of policy considerations proposed by our campaign relating to the Valero closing.

• Determine the true economic impact of the Valero closing. Although Valero has announced the closing of the refinery, it does not necessarily mean that no one will ever again operate a refinery on the Delaware City site. Prior to determining, from the state’s perspective, whether it is feasible to close the plant, the true economic impact of the closing must be calculated. Though initial estimates show that the economic impact to the state is approximately $881 million, the Markell administration and the General Assembly should consider appointing a joint task force to determine the true economic impact of the closing upon state and local revenues, including the additional cost of unemployment and medical benefits paid by the state to those workers impacted. Without this information, it is unlikely that the state can determine whether it is in the state’s best interest to allow the plant to close or to acquire the plant in the short term.

• Determine the value of the facility. Understanding the facility is losing approximately $1 million per day and Valero has opted to close the plant with no buyer, the state is likely faced with a seller (Valero) eager to unload an unprofitable asset. While it is tempting to assume that the facility has no value due to the lack of buyers, current economic factors and environmental issues facing the plant, the operating costs are subject to change as the economy improves. By understanding the true value of the facility, the state is better positioned to determine whether the cost of remediating a dormant asset is greater than the cost of acquiring the asset at a depressed purchase price and can then determine if it is economically sound to remediate while the plant is operational.

• Determine whether the factors impacting the Valero refinery are short-term or long-term in nature. Despite the current economic conditions (i.e., weakening prices for gasoline and reduced demand for certain refined products), as the U.S. economy improves the cost of gasoline will rise as refiners reach maximum output capacity. Even though the demand for fuel-efficient automobiles and products is rising, the demand for gasoline and other refined products produced by the facility could return to peak levels as the economy improves (i.e., in 2008, gasoline prices were at record levels). Additionally, if the state is better positioned to remediate the facility by having access to federal funds, this additional infusion of capital could assist a future buyer with offsetting the plant’s operating costs. Furthermore, an analysis undertaken by an independent panel could determine the role that Valero’s management structure, capacity output, cost of capital and other key performance measures have upon the plant’s long-term viability.

• Consider federal stimulus funds for remediation of the Valero facility. Unlike Valero (a private company), the state may be better positioned to receive federal stimulus money for remediating the facility (even if the plant remains in operation). Using federal funds for remediation could reduce the amount of private funds necessary to operate the plant while complying with environmental mandates – thus allowing the facility to become attractive to potential buyers. This evaluation process will require significant financial analysis different from the analysis conducted by Valero before it decided to close the refinery. As shown by the ability of other refiners across the nation to survive the current economic climate through reduced capacity, the high cost of remediation and environmental issues related to the plant are likely the key economic components that have placed the facility in its current situation. Since the environmental work is important and necessary, additional sources of capital must be located to entice a buyer to purchase the plant and operate it for an extended period.

• Consider all options prior to the Valero closing. After all the necessary information is obtained, our state would be in an ideal position to determine whether the plant:

• should close;
• should be acquired by the state in the short term; or
• should be acquired as part of a public-private partnership (with the state paying a portion of the environmental costs in exchange for part ownership of the facility).

While the facility may be unprofitable for Valero, it does not mean that the refinery does not have significant economic value from the state’s perspective. Despite our current financial condition and the condition of the facility, prior to acceding to the closing of the plant, the economic offices of our state should determine whether the state could acquire and sell the asset for a significant profit in a three- to five-year time frame. While it may not seem plausible in light of the recent string of unsuccessful owners of the refinery, a concerted effort to rehabilitate and convert the facility could serve as the ideal model for an environmentally conscious facility in Delaware. Though the state should not be in the business of operating a refinery, it is conceivable (as evidenced in other projects throughout the nation) that the state could play a strategic and significant role in the future of plant, if it is determined that the plant retains significant economic value to our economy.

By no means is this set of policy considerations comprehensive, but I hope that these suggestions can assist our lawmakers in evaluating the future of the plant. While there are no easy solutions to the economic challenges facing our state, the closing of the Valero plant highlights the importance of economic development and we must ensure that the roles and functions of our state financial agencies and departments are transformed in a manner to focus on this important issue.

Thank you.”

Statement by Chip Flowers, candidate for Democratic Nomination for State Treasurer, on the entry of Velda Jones-Potter into the race

“We welcome Velda Jones-Potter into the race and look forward to an exciting debate on the important role the state treasurer must play in strengthening Delaware’s finances in the 21st century” said Flowers, who announced his candidacy in August.

“Delaware continues to be plagued by numerous economic challenges, including unemployment, major layoffs, low worker morale and state budget shortfalls resulting from our weakened state economy.  Our campaign is focusing on the need to revamp the state treasurer’s office to give it a stronger role in shaping our economic development strategy to restore prosperity to the First State,” Flowers said.

Flowers, who lives in Middletown, founded the law firm, The Flowers Counsel Group, LLC, in Wilmington in 2006 after studying government at Harvard University. Prior to attending Harvard, Flowers worked as a mergers and acquisitions attorney at the Wilmington office of Skadden Arps.  Flowers has worked at the White House Office of Political Affairs, U.S. Congress Joint Economic Committee and served as a Delaware delegate to the 2004 Democratic convention. Flowers’ clients include the DuPont Co., AstraZeneca Pharmaceuticals, Bank of America, Barclay’s Bank Delaware, ING Bank, FSB, the Buccini/Pollin Group and Harvard University.

Attorney, business owner, to seek Democratic nomination

Chip Flowers of Middletown, founder and managing member of the Flowers Counsel Group, LLC, today filed papers with the Delaware Department of Elections, declaring his intention to seek the 2010 Democratic nomination for state treasurer.

Delaware “continues to be plagued by numerous economic challenges, including an increase in unemployment, major layoffs, low worker morale and state budget shortfalls resulting from our weakened state economy,” Flowers wrote in a letter to state Democratic officials. The campaign will focus on the need to revamp the state treasurer’s office to give it a stronger role in shaping the state’s economic development strategy and to advance “a new agenda aimed at restoring prosperity to the First State,” he said.

“Unlike our sister states, Delaware has not structured the state treasurer’s office to help our state master the economic challenges of the 21st century global economy and assist other state offices and agencies in bringing secure, high-paying jobs to Delaware,” Flowers said.

Flowers founded the Flowers Counsel Group in Wilmington in 2006 after studying government at Harvard University. Prior to attending Harvard, Flowers worked as a mergers and acquisitions attorney at the Wilmington office of Skadden, Arps, Slate, Meagher & Flom, LLP. The Flowers Counsel Group, which has added offices in Philadelphia, Boston and Washington, D.C., specializes in procurement law, advising businesses on contractual agreements for major purchases. Flowers’ clients include the DuPont Co., AstraZeneca Pharmaceuticals, Bank of America, Barclay’s Bank Delaware, ING Bank, FSB, the Buccini/Pollin Group and Harvard University.

Flowers first came to Delaware in 1987, when he was 12 and his parents, a military family, were stationed overseas, flying to and from Europe via Dover Air Force Base. He was immediately attracted to the state and chose to settle in Delaware as an adult. He majored in economics at the University of Pennsylvania. He received his law degree and a Master’s in Business Administration from Georgetown University and earned a Master’s in Public Administration from the Kennedy School of Government at Harvard.

Flowers was a member of the Delaware delegation to the 2004 Democratic National Convention. He is a former chairman of the Multicultural Lawyers & Judges Section of the Delaware State Bar Association, chief Democratic political analyst on WHYY-TV, and a board member of numerous civic and cultural organizations.