Wilmington, Delaware (March 30, 2012) – Delaware State Treasurer Chip Flowers published an op-ed in the NewsJournal discussing revamped mission of the Delaware State Treasury and new initiatives undertaken by the office. Below is the text of the op-ed (for the original text, please click here):
State treasury must put Delaware citizens and businesses first
by State Treasurer Chip Flowers, Jr.
As Delaware emerges from the depths of the economic crisis, we must chart a new course to redefine our economic future. Principles that guided us in the past are no longer relevant in a changing world that demands bold, innovative ideas to restore prosperity and create a more dynamic state economy. There are some in the old guard of politics and government who would limit the work of our state treasury. However, in these challenging times, it is imperative that our state treasury embody a new spirit by implementing new ideas that will help restore prosperity to Delaware. Let us consider a few of these ideas.
First, our state treasury is working to deposit Delaware funds in Delaware banks that are actively lending to Delaware businesses and families. With over $1.5 billion in assets, our treasury serves as the cornerstone of our state’s financial system, and we must ensure that Delaware money is working for Delaware. Unfortunately, when I entered office this January, a significant amount of state funds were held in institutions that were in financial difficulty or do not actively lend in Delaware — institutions often supported by members of the old guard. Without question, this has contributed to the lack of capital available to businesses and families throughout the state.
To counteract this major financial problem, our state treasury is proposing a Small Business Economic Recovery Program. Under this program, over $200 million will be deposited in accounts fully insured by the U.S. government with healthy banks in all three counties of Delaware to infuse needed capital into our economy without placing state funds at risk. We are confident that this program will benefit small business lending (including providing funds to women- and minority-owned businesses) and job creation in Delaware.
Second, our state treasury must be on the forefront of monitoring the health of Delaware’s economy and financial system. In recent years, we have witnessed too many Delawareans lacking the information needed to make informed decisions that affect the financial health of their families. Expanding the commitment to economic education made by my predecessors, our state treasury will serve the public by providing critical information about Delaware’s economy to our businesses and families. Through its new Office of Economic Policy (created at no cost to taxpayers), the state treasury has developed the Delaware Economic Index, a user-friendly tool that provides key data relating to the health of our economy. This index provides Delawareans with timely economic information to assist them in making decisions.
Finally, our state treasury is modernizing to meet the demands of a 21st-century global market. During my first 90 days in office, our state treasury faced significant challenges arising from the potential collapse of a major state financial institution, turmoil in Egypt and Libya and a human calamity in Japan — each affecting the underlying investments in our state portfolio. Fortunately, with the support of our General Assembly, we were prepared.
Using advanced technology and a newly implemented financial system that tracks economic activity in real time, our state treasury monitored world economic activity and made informed decisions to protect state funds in a timely manner. While some wanted the state treasury to disregard rules to support their favored institutions, we made decisions that were necessary and fair to protect the interests of the people of Delaware.
Our state treasury is not immune from the internal and external forces that govern Delaware’s economic destiny. Change is never easy. Those who cling to the past often use fear and character attacks to undermine the positive transition necessary to move Delaware forward. The time has come for a new generation of Delawareans to put forth bold ideas and innovative plans to restore prosperity. We are capable of doing more — and we will.
