PRESS RELEASE

For immediate release, Feb. 6, 2012
Contact: Deputy State Treasurer Erika J. Benner at (302) 672-6700 or erika.benner@state.de.us

DOVER — State Treasurer Chip Flowers today issued his Second Report on the Delaware State Treasury, a 12-page document that outlines the strengths of the office, the accomplishments during the first year of his administration, and challenges and initiatives for the coming year.

“In our post-recession climate, the Delaware State Treasury (Treasury) has made significant progress over the past year in our services to Delawareans.  However, new challenges in today’s global financial markets will require the Treasury to continue creating and implementing innovative ideas and solutions to fulfill our mission as the cornerstone of the state’s financial system,” Flowers said in releasing the report prior to the Treasury’s General Assembly’s Joint Finance Committee hearing today at 2:30pm.  The report is available online at the Delaware State Treasury website, http://treasury.delaware.gov/.

In his report, Flowers noted a significant number of achievements of the Treasury during 2011, including:

• Implementing a new financial system that was instrumental in assisting the Treasury perform critical services during a challenging economic climate.
• Signing an agreement that allows corporations and businesses the option of using American Express® cards to make payments to selected state agencies.
• Signing the Delaware Money in Delaware Banks directive, which will increase the portion of the state’s investment portfolio that is deposited in U.S. Government insured interest-bearing accounts in local banks.
• Creating the Delaware Economic Index, a bimonthly summary and analysis of economic data that impacts Delaware businesses and families, and the Delaware Early Warning System, an easy-to-understand evaluation of the state’s economic climate.
• Creating an Office of Economic Policy and an Office of Finance and Treasury Services within the Treasury at no cost to taxpayers by consolidating existing Treasury assets.
• Establishing cooperative relationships with the White House, the U.S. Treasury, Federal Reserve Banks and other key federal agencies.
• Modernizing the office through the use of new hardware and software, and expanding the online presence of the Treasury.

Flowers listed five significant challenges facing the Treasury in the report. They are:

• Improving the transparency of policies of the state’s Cash Management Policy Board.
• Increasing and diversifying the number of investment managers approved to service the state’s investment accounts.
• Overhauling the structure of the state’s investment portfolio to improve diversification, liquidity and yield with the assistance of an independent financial advisor.
• Modernizing technology to secure the Treasury’s critical financial data in line with best practices.
• Seeking the best benefits with the lowest possible fees for the state’s deferred compensation plans.

In addition to addressing these challenges, the key initiatives of the Treasury for the upcoming year include:

• Engaging an independent investment advisor with expertise in government and public finance to assist the Cash Management Policy Board and the Treasury in improving the state’s investment portfolio.
• Expanding the Delaware Money in Delaware Banks initiative to include deposits in local credit unions.
• Using prepaid debit cards to continue the annual reduction in the number of checks issued by the state.
• Expanding financial education and outreach programs.
• Working with other state officials to include the purchase of warrants from recipients of state economic development grants, thus increasing the state’s return on its investments.

“Although the past year has been filled with significant achievements, we must continue to work hard and propose creative solutions to emerging challenges in our service to the people of Delaware in this competitive 21st century global economy. It is the goal of our team for the Delaware State Treasury to serve as the ‘financial idea center’ for our state government,” Flowers said.

To obtain a copy of the Second Report on the Delaware State Treasury, visit www.treasury.delaware.gov.

About the Delaware State Treasury

The mission of the Delaware State Treasury, the cornerstone of the state’s financial system, is to restore economic prosperity to the First State by providing critical financial services for the People of the State of Delaware. Led by Delaware State Treasurer Chip Flowers, the Delaware State Treasury works with public, private and nonprofit organizations to present financial clarity to all Delawareans through its four divisions – Executive Office of the State Treasurer, Office of Finance and Treasury Services, Office of Disbursements and Reconciliations and the Office of Economic Policy. For more information on the Delaware State Treasury, you can visit www.treasury.delaware.gov, send an email to statetreasurer@state.de.us, or call 302-672-6700.

State Treasurer Chip Flowers and the Delaware State Treasury have released the January 2012 edition of the Delaware Economic Index, which rated the state’s economic climate over the past (60) days as ‘Fair’.  For additional information or to obtain a copy of the Index, please visit www.treasury.delaware.gov.

Dover, DE – From October 16-22, 2011, the Delaware State Treasury will host a series of events throughout the state to celebrate “National Save for Retirement Week.”  During the week, the State Treasury will promote the benefits of saving for retirement among Delawareans and launch its innovative statewide savings campaign, “Earn. Save. Invest. PROSPER.”

“During National Save for Retirement Week, I am pleased to announce that the Delaware State Treasury will play a key role in helping Delawareans understand the importance of saving for retirement through our new savings campaign.  We are excited to launch a series of programs and initiatives throughout the state that encourage individuals and families to begin their savings journey towards financial freedom,” said Treasurer Chip Flowers. “It is important for the Treasury to provide Delawareans with helpful financial information that will assist them in their journey and we want Delawareans to earn, save, invest and prosper,” said Treasurer Flowers.

Understanding the difficult economic climate faced by many Delawareans, the State Treasury has also designed savings tools to assist families unable to save due to financial hardship.  “While we understand that many Delawareans are unable to save due to the national economic climate, we want to remind those individuals that their State Treasury offers valuable tools that may help them during this difficult period,” said Treasurer Flowers.

Earlier this year, the Delaware State Treasury launched its signature “Prosperity Portal” available on its website (treasury.delaware.gov ).  The primary focus of the portal is to educate Delawareans on the importance of saving and investing.  Working with non-profit organizations, the State Treasury has designed the portal to meet the needs of all Delawareans, from novice savers opening their first bank account to experienced investors seeking additional sources of information.

In addition, the State Treasury’s award-winning delawaresaves.com site is available for state employees to take advantage of the State’s Deferred Compensation Plans.  Employees are encouraged to visit the site and schedule time to sit with financial professionals to map out their goals and plan for retirement.

The State Treasury team will visit locations throughout Delaware each day during the week (a list of locations are set forth below). With a combined effort involving non-profit organizations, the media, and other state agencies, the Treasury hopes that everyone will take time during National Save for Retirement Week to focus on their future.

Monday, October 17

11am – 2pm

Delaware Technical and Community College, Owens Campus

Student Services Building

18800 Seashore Highway

Georgetown, DE 19947

Tuesday, October 18

11am – 2pm

DHSS Herman M. Holloway, Sr. Campus

Main Building – Front Lobby

1901 North DuPont Highway

New Castle, DE 19720

Wednesday, October 19

11am – 2pm

Kent County Courthouse

Main Lobby

414 Federal Street

Dover, DE 19901

Thursday, October 20

11am – 2pm

Carvel State Office Building

Main Lobby

820 N. French St.

Wilmington, DE 19801

Friday, October 21

11am – 2pm

Delaware Department of Transportation, Kent County Office

Farmington/Felton Room

800 Bay Road

Dover, DE 19901

The weather forecast may be severe, but the state’s economic climate is merely fair, Delaware’s state treasurer says.

On Friday, Treasurer Chip Flowers released the Delaware Economic Index, a report of economic conditions surrounding Delaware and the nation.

The 10-page roundup looks at economic events, studies and political developments.

The nation’s economic trend, Flowers’ office reports, is marked by “weakening economic growth” with national and state economic growth as “stagnant.”

On a color-coded, five-tiered scale, ranging from red (”severe”) to green (”strong”), Flowers’ office designated the state’s economic climate over the last 60 days as “fair,” or yellow.

It underscores that judgment by pointing to:

» The state’s unemployment rate increasing by 0.1 percent, to 8.1 percent in July from 8.0 percent in June.

The national unemployment rate is 9.1 percent.

» A weak state housing market, except for Sussex County, where average home prices have increased by 10 percent over the last year.

The average price of a home in New Castle County is down 20 percent from July 2010, and Kent County is down 7 percent.

» National consumer confidence fell to its lowest level in decades in a University of Michigan survey.

But it also notes:

» A four-week moving average of U.S. jobless claims at 402,500 on Aug. 13, the lowest figure since April 16.

» Delaware’s portfolio, managed by Flowers’ office, had $1.8 billion this month, compared with $1.6 billion in August 2010.

The report also provided a roundup of major economic headlines, which included Fisker Automotive, Hawker Beechcraft and Southwest Windpower announcing new jobs in Delaware, as well as Bank of America’s plans to lay off 3,500 nationally.

State Treasurer Chip Flowers