Time for Chip Flowers to Get Serious and Work with the CMPB
So let’s start with a serious question — if Sheriff Christopher is the Sheriff of Nuttingham, what character would we assign to Chip Flowers?
Today, the Attorney General’s office rendered an opinion based on questions that the Cash Management Policy Board asked the AG to weigh in on. Those questions are:
1. As between the Office of the State Treasurer (the “State Treasurer”) and the CMPB, who has the power and legal authority to make investment decisions regarding the State’s $2 billion cash management portfolio?
2. Does the power and authority include decisions regarding asset allocation between short term and intermediate term investments, and decisions regarding asset allocation among fund managers?
The AG’s office has concluded that it is clear that the CMPB is invested with the legal authority to make investment decisions for the state’s cash and that they also make decisions on asset allocations. It is hard to see otherwise, if you read the appropriate statute. ALL of the appropriate statute. This is an interesting document and looks familiar if you read the AG’s opinion regarding the power and authority of the office of elected Sheriff some years back, responding to Sheriff Christopher’s ambitions to operate as a sworn police officer. They’ve gone through the history of the office — from colonial times to the formulation of the first constitution through now.
Delaware’s current Constitution was ratified in 1897. In the 1897 Constitution, the State Treasurer, like other state offices, was reorganized under the Executive branch and made an elected rather than an appointed office. The 1897 Constitution, like all prior Delaware
Constitutions, does not expressly grant the State Treasurer any power with respect to the investment of State funds. Under Article II, the State Treasurer has no express constitutional powers and just one constitutional duty- namely, to settle accounts annually with the General Assembly. The constitutional restriction on the State Treasurer’s ability to withdraw funds and make payments from the treasury only when expressly permitted by the legislature remains in place to this day.
Interestingly, the recent clarification of the duties of the Sheriff comes into play in defining the duties of the Treasurer:
While no Delaware court has addressed whether the State Treasurer has inherent constitutional powers, the Delaware Supreme Court recently acknowledged that constitutional officers have certain inherent or “core” duties and powers that may not be abrogated without amending the Delaware Constitution. In Christopher v. Sussex County, the Delaware Supreme Court examined the “substance” or core functions of the sheriffs office, a constitutional office, as it developed in Delaware. The Court looked to the role of Delaware sheriffs under colonial governance, the common law as it existed in 1776 (when the office of sheriff first became a constitutional one), and statutory enactments leading up to the adoption of the 1897 Delaware
Constitution in concluding that sheriffs have no constitutional law enforcement powers.
Then, finally, the authority of the Cash Management Policy Board vs. the authority of the State Treasurer:
While the General Assembly has explicitly granted expansive authority to the CMPB as the administrative agency empowered to make investment decisions, it has simultaneously expressly limited the authority of the State Treasurer. In 1981, the General Assembly enacted Section 2716(e)(l) of Title 29, which states in relevant part that “[t]he investment of money belonging to the State shall be made by the State Treasurer in accordance with policies established by the Board and subject to the terms, conditions and other matters, including the designation of permissible investments relating to the investment of the money belonging to the State …. ” Last year, the General Assembly reiterated this restriction with the insertion of the
following epilogue language in the fiscal year 2013 budget bill: “[F]unds under the custody of the State Treasurer shall be invested consistent with [the CMPB] guidelines.” As a substantive measure enacted by the General Assembly in an appropriations bill, the epilogue language has the full force and effect of law. 36 Section 2716( e)( 1) and the 2013 epilogue language explicitly direct the State Treasurer to invest State funds only in accordance with the CMPB investment policies and the Guidelines.
So now the AG makes clear what pretty much everyone else understood — that the CMPB directs the investments of the State’s cash accounts and the Treasurer executes on the consensus decision. Chip Flowers has lost this critical round — largely because he thought that he could ignore what the statute said and just bully his way into some additional authority. It is a shame, really, because better political chops might have helped here. This was always a problem that needed the help of the Governor and the GA and Chip Flowers sought the help of neither. Not exactly forward looking politics, much less the kind of consensus-building this kind of major policy change would need to happen.
Flowers talks to WDEL and tells them that the AG’s decision is “non-binding”, “peculiar” and “corrupt”. Odd characterizations from someone who can’t quite figure out how to 1) manage his travel budget and 2) abide by the State’s travel policy. I suppose he could take the State to court, much like Sheriff Christopher did, to get another opinion — but I’d bet he won’t. He is at the end of the utility of his bluster and unless he can figure out a better path forward, probably at the end of this crazy usurpation of power. The continued insistence that somehow he is a bulwark of cronyism is completely dead — especially since the cash managers prior to Flowers is pretty much the same as those after Flowers. The cronyism might be there — but the way to address it certainly was not to just claim authority the legislature and the Constitution never gives you. This works for Tea Partiers and certain left-leaning Democrats who fancy themselves aligned with those who are “fighting the power”. They’re never going to care whether you are *effectively* doing that or even doing that within the law.
I’m betting that this (and the Travel business) has gone too far for Chip to learn something and readjust his approach or position. The bluster and the posturing is just too deeply baked in the cake for genuine lessons learned. He’s been arguing with the Governor and now it looks like he is expanding the field to the Attorney General. I do think that this decision ought to give the GA some genuine comfort that they are absolutely in the clear in taking up last year’s legislation clearing up the role of the CMPB. Not that Chip Flowers will get it, but he’ll have much less room for the bluster in the room.
And I still think he ought to resign over not being able to manage his travel budget.
Thanks to Anonymous Tipster.
Tags: Bamboozled!, Chip Flowers
Peculiar and corrupt…”Benner remains on the treasury’s payroll”
If Flowers wants to fight the man, he needs to step down and run for Governor outright. Put on the mantle of the victim and try to get Christine O’Donnell’s 25% who think they are stabbing the pharisees in the eyes with their futile protest votes.
LOL, you guys are a trip. Flowers made some proposals to move money, the proposals were shot down long ago, yet you carry on as if Flowers had pulled off some kind of bank heist and theft of the crown. Flowers’ main offense to the Establishment continues to be the Credit Suisse reports and his annual Treasurer’s report pointing out his positions on finance.
Good stuff on Loudell’s blog:
we may see someone from his neighboring 9th RD seriously consider running against him soon. Everyone has lost faith in him…
Flowers made some proposals to move money, the proposals were shot down long ago, yet you carry on as if Flowers had pulled off some kind of bank heist and theft of the crown.
Um, no. He made claims that he could make allocation decisions ON HIS OWN — without consulting the CMPB. And he’s been insisting on that position ever since. That’s why the board made their request to the AG and why the Board barely speaks now. Much like Sheriff Christopher, Flowers started with claims to authority he did not have and continues to insist on. Rather than try to get the Gov and GA to help him expand the office duties, he just made wild claims and tried to bullshit his way into more authority. Stupid and stupidly done. Spinning this up further by saying that the AG’s opinion is advisory only is even stupider. He is not an authority unto himself.
He’s on the board himself. If he had even a little negotiating skills he could have made smalls strides in making changes he thought were positive. Instead his arrogance got in the way. We’ve never seen such political self destruction in Delaware (maybe spending 80k on office renovation) Hard to believe he’s now going to fight with the AG who happens to be the son of the VP. I wonder how much White House recognition he’ll get now?
Time for another Chip approval rating poll! It’s been 2 long months
The political self destruction is noteworthy and will probably become the stuff of legend.
It was all so avoidable.
Until last night, I thought he could survive a primary. Dissatisfied voters show up more than happy ones, and he might have been able to knit together enough of an anti-insider coalition to pull through a fight if the opponent wasn’t well funded.
But I don’t see how you attack Beau and his AG’s this way and get through it.
I also thought until last night that Chip could leverage his multiple Ivy League degrees, Skadden pedigree and job to wind up in Washington for a few years at the end of the Obama administration and return a few years later to run for Lt Gov or Congress.
But what federal agency would risk hiring somebody who uses phrases like “corrupt” about an Attorney General’s office?
The AG’s opinion is rather peculiar, because it is based on a political position of the treasurer rather than on any specific actions; kind of a pre-crime. It is well within constitutional authority for Flowers to ask for certain fund selection authority to be delegated to him. By this point he knows damn well that won’t happen. But if he wants to issue reports comparing his approach with the status quo, the state is better off for it.
Do you even understand why the CMPB barely meets or speaks? It is because the Treasurer keeps telling them that he doesn’t need them to decide on investments or allocations. That’s why they asked for the opinion. It isn’t unlike Sheriff Christopher claiming arrest powers sending out his minions to arrest people. Except here, an entire legal authority is being mostly blocked by one guy who thinks he can bully them out of their authority.
Did anyone listen to the WDEL interview with Mr. Flowers? It clearly shows such arrogance and disdain for the CMPB and AG office.
The opinion is not peculiar. The Code is very clear. Flowers is officially in la-la land. There would be no need for an AG’s opinion if Flowers didn’t claim that the language in the Code doesn’t mean what the words clearly say.
What’s peculiar is that a guy with so many pedigreed degrees can’t use basic reading comprehension skills.
@ El Som-
“What’s peculiar is that a guy with so many pedigreed degrees can’t use basic reading comprehension skills.”
You can thank the public school system for that.
I am a graduate of RCCSD schools. Many of my classmates don’t know the difference between “your” and “you’re”. It’s embarassing.
I graduated in 1988. The sadness deepens.
I realize that grammar and punctuation are not the same as reading comprehension, but all of the above have been lacking for decades.
“What’s peculiar is that a guy with so many pedigreed degrees can’t use basic reading comprehension skills.”
Oh I think he can read and comprehend it all just fine. He just thinks that no one else can or will. And you can see some of that bet paying off among the commenters here who suit up to support this BS. It’s the lack of political comprehension that is hurting him.
Chip strikes back, hard! Apparently there is an article in the NJ but Kilroy has a great summary. Flowers is calling for financial disclosure of Dave Marvin and the CPMG, just as he has to do.That will leave a mark. And they say Chip has no political chops.
Flowers also noticed the AG opinion on his pre-crime doesn’t have Beau’s signature! WTF is up with that? Own it, Beau!
Yes, Chip deciding to turn his embarrassing loss into a multi-day story, expand his fight with the Governor into a brawl with Beau Biden, antagonize the chief deputy attorney general, pledge to rack up a new round of legal expenses and earning a rebuke by the editorial board that an eventual primary opponent will use against him is a fine set of political chops.
If he was a mechanic, he wouldn’t stop “fixing” things until all his customers’ cars were on fire.
As Kilroy points out, Beau has disclosure issues of his own.
Indeed. If you are in a hole, the rule is to stop digging. But here he keeps reminding people that he’s been incompetent pretty much every step of the way. Including this self-serving call for financial disclosures. Because the GA is never going to do this JUST for the CMPB. But there’s a real argument in asking everyone serving on a State Board to provide financial disclosures.
The GA is never going to do it, period. Which is what makes it such an evergreen rebuttal and a constant reminder of whose water the governor is carrying,.
Markell has looked into Dave Marvin’s eyes and seen his soul:
“The folks that I dealt with, including Dave Marvin, were highly ethical. He’s been doing this now for 30 years. My sense is these folks, all they want to do is just be helpful to the state.”
See? No disclosure necessary. All they want to do is help.
Political skills would have told you that you had the best chance of getting the GA to do something if: 1) you could point to some corruption or 2) if you could focus on upgrading the entire state board process.
Flowers has had a few years to come up with evidence of the former and can only spin up some Fox-news style bullshit. His basic problem here is that the cash accounts have been largely doing just fine well before Flowers got into office and he can’t point to any incompetence or corruption. Just that he doesn’t like these guys — apparently because they’ve skillsets he doesn’t have.
He really needs to STFU and get to work. There is nothing about all of this extended incompetence that is going to get him re-elected.
1. What she ^ said- good point Cass
2. Kilroy takes a cheap shot here-“Sorry to say it, but Chip the root of the problem may be the white elitists might have a problem with a brother holding the key to the state’s treasure. ”
Really, then why would the white elitists castrate the WHITE Sussex Sheriff and his homogenous acolytes?
To make this a race issue is beneath contempt- it’s about a power grab, and arrogance and ego- not race.
If it was, why would the white elitists have supported him in the first place? Grow up Kilroy .
Kilroy gives us a textbook example of the soft bigotry of low expectations.
If Flowers had focused on disclosure as an issue, in the same way that John Kowalko and Bryan Townsend focused on disclosure as an issue for members and staff of the Public Service Commission, he would have been on solid ground. I think it’s a legit issue, and had he worked with like-minded individuals in the General Assembly to consider this from Jump Street, he might have had some success.
But, he’s been in ‘dancing as fast as I can’ mode for something like 3 1/2 months now, and it’s well nigh impossible to take anything he now proposes seriously. Why? Because he’s become a cartoon of his own making. All he’s doing now is throwing stuff up on the wall with the hope that something sticks.
Oh, and it’s tough to take calls for transparency seriously from someone who REFUSES TO EVEN SAY WHO HE MET WITH (if he met with anybody at all) during his Alaskan jaunt.
I agree, but the disclosures he’s requesting are legit.
I’m all in favor of transparency, but let’s keep this in perspective. We’re talking about a $300 million deposit to a bank with nearly $3 trillion in assets. For the math challenged, that’s the equivalent of $1 to $1 million. The deposit of those funds makes no difference whatsoever to the performance of JPMorgan’s stock.
In short, who cares what positions these people have with these banks? This isn’t a situation like the General Assembly voting to deregulate our electric market, a decision worth billions to Pepco.
By definition, you have a conflict of interest only if the entity you’re supposedly helping benefits thereby. That is not the case here.
Also, too: This is not the first time that Chip has pulled out a “principle” card to try to make his case. During the primary run-up, I remember a Chipmunk arguing that it was better on principle to allow an elected official rather than appointed ones make these decisions, because that was “more democratic.”
It’s a perfect illustration of why such “principles” are bullshit. Citizens, unless they put in a lot of study time, are not capable of judging the abilities of those running for the office to do the job correctly, and it’s not the only office in the state like that (see Stewart, Karen Weldin).
I am not about to hand over the state’s money to a reckless risk-taker, and I’m not well-studied enough to judge who would and wouldn’t make a good money manager. That’s why the state went to the cash management board and curtailed the treasurer’s power in the first place.
Regardless, I just wanted to point out that Chip’s time at Harvard wasn’t entirely wasted. He makes good arguments on the principles of government. Sadly, he now illustrates my belief that theoretical study does not guarantee a person understands the actual practice of politics and governance.
“The deposit of those funds makes no difference whatsoever to the performance of JPMorgan’s stock.”
No, but it makes a difference to the individual bonus and compensation of the banker who brings in the state business. Way to miss the point.
Historically there has always been enough money to go around to pay tribute to the establishment banks and also make a decent return. That doesn’t make it right.
There is no credible support for the charge of “reckless risk taker” and I suggest that you pulled it out of your rear end.
If an elected Treasurer was solely responsible for investment decisions, what would stop a bank from dropping a few hundred thousand into a race days before an election to influence who wins, and then expect repayment through investments? It seems that an independent board would lessen that risk.
“No, but it makes a difference to the individual bonus and compensation of the banker who brings in the state business. Way to miss the point.”
How do you know he is compensated by his firm for “bringing in the state business”? There is no allegation that the investment of the state’s funds went through his firm. If this is about anything beyond which banks the state’s deposits go into, I missed it. I’d appreciate a link if I did.
As far as I’m aware, the allegation is that investing through JPMorgan helps Marvin because his firm has stock in that bank.
As long as we’re delving into people’s potential conflicts of interest, does anyone have a link to Chip’s financial disclosure forms?
Or The Flowers Group client list?
@puck-
I often agree w/ you when you take an unpopular stand. That said, you’re backing a lame horse where Chippa is concerned. Good luck w/ that.
Then again, I could be wrong. One should never underestimate the stupidity of Delware voters. KWS was elected twice, was she not?
Nuttingham-
If he was a mechanic, he wouldn’t stop “fixing” things until all his customers’ cars were on fire.
As a mechanic, I found your comment hilarious. Sadly I know a few “mechanics” who embrace that “strategy.”
> the soft bigotry of low expectations.
In other words, the shame of (many) white liberals.
Apparently Public Officer Financial Disclosure Forms aren’t publicly available unless you FOIA them. Bet that Chip won’t be at the forefront of making these reports available online, either. But that’s why this transparency bull won’t go very far — he certainly hasn’t been very forthcoming or transparent, so this all looks like more hypocrisy on his part. In spite of threats to have the Feds come to investigate.