Chipman Flowers Jr. facts for kids

Quick facts for kids Chipman Flowers Jr.
Treasurer of Delaware
In office January 2, 2011 – January 5, 2015
Governor	Jack Markell
Preceded by	Velda Jones-Potter
Succeeded by	Ken Simpler
Personal details
Born	(1974-12-27) December 27, 1974 (age 50) Honolulu, Hawaii, U.S.
Political party	Democratic
Residences	Boston, Massachusetts
Alma mater	University of Pennsylvania Georgetown University Law Center Harvard Kennedy School
Occupation	Politician, attorney, business owner

Chipman L. Flowers Jr. (born December 27, 1974, in Honolulu, Hawaii) is an American politician, lawyer, and business owner. He served as the treasurer for the state of Delaware from 2011 to 2015.

As a member of the Democratic Party, Flowers made history. He became the first African American to win a statewide election in Delaware. This happened when he was elected treasurer in November 2010 at age 35. At that time, he was also Delaware's youngest official elected to a statewide position. Today, he leads The Flowers Counsel Group, LLC, a law firm he started in 2006. He also works as Deputy Legal Counsel for the Massachusetts Democratic Party.

Early Life and Education

Chipman Flowers Jr. is the youngest child of Chipman L. Flowers Sr. and C. Jean Johnson Flowers. His father was a retired Army officer. His mother was a teacher and guidance counselor for schools connected to the U.S. Department of Defense. His father was given his military commission by General Daniel "Chappie" James. General James was the first African-American four-star general in the United States.

Because his father was in the military, Flowers moved around a lot when he was young. He went to public schools in Dallas, Texas, Lawton, Oklahoma, and Pittsburgh, Pennsylvania. He attended middle and high school in Italy. This was when his father was stationed overseas. He graduated from Vicenza American High School in Vicenza, Italy.

Flowers went on to college at the University of Pennsylvania. He earned a bachelor's degree in economics in 1996. Then, he studied at Georgetown University. There, he earned his law degree (called a Juris Doctor) and a business degree (a Master of Business Administration) in 2000. While at Georgetown, Flowers worked at several places. These included the A. Philip Randolph Institute and the Congressional Joint Economic Committee. He also worked in the White House Office of Political Affairs during the Clinton administration.

Later, Flowers continued his studies at the Harvard Kennedy School. He earned a Master of Public Administration degree there. He also received the Don K. Price Award for his excellent schoolwork and public service.

Career Highlights

After finishing at Georgetown, Flowers started his law career in Delaware. He worked in the Wilmington office of Skadden, Arps, Slate, Meagher & Flom, LLP. He focused on helping companies with mergers and acquisitions. This means helping companies combine or buy other companies. He also led the Multicultural Judges and Lawyers Section of the Delaware State Bar Association. Flowers was the main Democratic expert for Delaware Tonight. This was a nightly news show on WHYY-TV.

In 2006, Flowers started his own law firm, Flowers Counsel Group, LLC. This firm focuses on corporate law. It helps companies with buying and selling parts of their business. It also helps with procurement law, which is about how companies buy goods and services. His firm is one of the largest minority-owned corporate law firms in the region. It has helped clients with deals worth over $1 billion.

Treasurer of Delaware

Campaign and Election

In 2010, Chipman Flowers ran for Delaware State Treasurer. He largely paid for his own campaign. He won the Democratic primary election against the person who was already treasurer, Velda Jones-Potter. She had been appointed by Governor Jack Markell. Flowers won with 54.3 percent of the votes.

His plan for Delaware was called “The Flowers Framework for Restoring Prosperity.” It included a "Financial Warning System." This system used a color code to show how healthy the economy was. He also suggested a "Hometown Tax Credit." This credit would encourage businesses to hire people from Delaware schools.

In the main election in November 2010, Flowers won against Colin Bonini. Bonini was a Republican state senator. Flowers received 153,203 votes, while Bonini received 147,031. Flowers was 35 years old when he was elected. He became the first African American to be elected to a statewide position in Delaware. He was also the youngest statewide elected official during his time in office.

Time in Office

In 2011, his first year as treasurer, Flowers made changes to the Delaware State Treasury. He divided it into four different offices. He also started publishing the Delaware Economic Index. He put in place the Delaware Early Warning System. This system rated the state's economic health.

Soon after taking office, Flowers faced a big challenge. He had to decide whether to remove hundreds of millions of state funds from Wilmington Trust. This was a financial institution that was having problems. Flowers ordered the institution to move state money into accounts that were protected by the government. He also suggested big changes to spread the state's money across many different banks. This would help reduce risk.

Many financial experts and other state treasurers thought his actions were necessary. However, these actions caused some disagreements with Governor Jack Markell. These disagreements continued throughout his time as treasurer.

That year, Flowers was chosen to be on the Executive Committee of the National Association of State Treasurers. He represented the treasurers from the Eastern states. He also donated his entire first year's salary, over $100,000. This money helped fund two special programs at the Treasury. These programs were in partnership with United Way of Delaware.

Cash Management Policy Board Discussions

In 2012, Flowers and Governor Markell had discussions about the state's Cash Management Policy Board. They also talked about needing "open and competitive" contracts for managing the state's investments. Flowers believed that the board's investment choices were not earning enough money for the state. He thought the state needed to hire new investment managers through a fair process to earn more money and lower fees.

Governor Markell and his team supported the board. They said Flowers was trying to take over the board's usual jobs. Flowers asked Credit Suisse Securities USA, LLC, to create a report. This report showed that Delaware's investment earnings were lower than similar states. Flowers also wrote an article explaining his views. That same year, he helped the state's investments earn an extra $4 million. During his term, Flowers helped the State of Delaware earn over $55 million.

After the Credit Suisse report came out, the state Treasury started to change how it managed its money. In October 2012, the Treasury and the board agreed to spread the state's money more widely. They also agreed to use more investment managers. These managers would need to meet certain financial goals. The Treasury also worked out lower fees.

Financial Education and Protecting State Money

In May 2012, the White House praised Delaware and two other states. They were recognized for their efforts to teach people about money. The White House liked Delaware's Economic Index and the Prosperity Portal. The Prosperity Portal was a website with information on financial topics.

In early 2013, all three major rating agencies (Moody's, Standard & Poor's, and Fitch) gave Delaware's bonds a AAA rating. This is the highest rating possible. Later in 2012, a federal program that protected bank accounts was ending. Flowers decided to protect Delaware's state money. He required banks holding state funds to provide security for the accounts. Before he took office, Delaware was one of the few states that did not require this. This action protected hundreds of millions of state funds. It is seen as one of his biggest achievements.

"Honest Way" Ideas

In January 2013, Flowers held a press conference. He suggested a set of changes called the "Honest Way" proposals. These ideas aimed to improve Delaware's financial system. They especially focused on how the state's Cash Board worked.

Under the "Honest Way" proposals, Flowers suggested that Cash Board members should share their financial information every year. They were only required to do this when they were first appointed. He also proposed that the board meet at least every three months to manage investments. Before, they only had to meet twice a year. Flowers also wanted board members to step aside from votes if they had a personal conflict of interest. There was no rule for this before. He also suggested term limits for members, as some had served since the early 1980s. Finally, he wanted to stop Cash Board members from giving political donations to elected officials who had a role in the state's finances.

Flowers said these ideas came about because one Cash Board member had given a lot of money to the Governor's campaign. This member had then asked the Treasury to put state money into banks based on their personal interest, not what was best for the state. These proposals led to months of public discussion about the Cash Board's role. The Governor and Democratic leaders in the legislature were against the proposed changes. During the press conference, Flowers said, "I want to work with an honorable Board operating with integrity, not a corrupt Board seeking to use your money for their advantage ... I want to do it the right way, not the corrupt way."

In February 2013, Flowers almost achieved a big win. The Republican group in the House of Representatives joined some Democrats. This caused a tie vote for a reform measure. This measure would have immediately made the annual financial disclosure rule for the Cash Board law. This happened despite opposition from the Governor and the Speaker of the House. In the end, the reforms were sent to a committee for review. However, as a result, the Governor and Democratic leaders in the legislature introduced laws to reduce the State Treasurer's powers. Flowers did not give up. Eventually, some parts of the "Honest Way" reforms were adopted by the state's General Assembly.

In February 2014, Flowers released The Fourth Report on the Delaware State Treasury. This report listed over 35 achievements during his time in office. Key highlights included the state's investments earning over $44 million. This included positive earnings for 30 out of 37 months. The report also noted steps taken to protect the state's money and a $400,000 reduction in yearly fees.

Travel Expense Discussion

In November 2013, questions were raised about money spent during a business trip to Alaska. This trip happened the year before with his deputy treasurer, Erika MacZuba Benner. Flowers stated that his travel costs were fair. He said he spent the trip meeting with bankers and lawyers about Delaware's $2 billion investment money. The National Association of State Treasurers was supposed to pay back the cost of the trip. However, a staff member incorrectly filed the paperwork. Flowers had contributed over $550,000 to his campaigns and donated over $100,000 of his first year's salary. He chose to return $460.80 for the Alaska trip. He also returned an extra $415.25 for an additional day's stay related to a meeting in Seattle in 2012. On July 30, 2014, the Office of the Auditor of Accounts released a full report. It found that Flowers had traveled only for proper business reasons. His trips to Alaska and Seattle were paid for (fully or partly) by the National Association of State Treasurers and the National Association of State Auditors, Comptrollers and Treasurers. This meant the State of Delaware actually owed him money for his travel costs.

Decision Not to Seek Re-election

Sean Barney, a Democrat, decided to challenge Flowers in the Democratic primary election. Barney had been a policy director for Governor Markell. In August 2014, former deputy treasurer Erika MacZuba Benner made accusations against Flowers. She claimed he had harassed and threatened her earlier that year. Flowers strongly denied these claims. The authorities later found no criminal wrongdoing by Flowers. On August 15, 2014, Flowers announced that he was leaving the race. He said he would leave Delaware after his term ended. Republican Ken Simpler then won against Barney in the general election.

At the end of his term, Flowers held a press conference. He spoke about his concerns regarding the state's media and political leaders during his time in office.