GOP treasurer candidates answer questions

Republican candidates Ken Simpler and Sher Valenzuela are facing off in the Sept. 9 primary to take on Democratic candidate Sean Barney in the Nov. 4 general election. State Treasurer Chip Flowers has withdrew his name Aug. 28 from consideration for re-election.

Ken Simpler

Age: 47

Education: St. Andrew’s School (1985), AB Political Economy, Princeton University (1989), MBA and JD, University of Chicago (1993)

Occupation: Chief Financial Officer, Seaboard Hotels (Rehoboth Beach)

Residence: Newark

Spouse: Liz (married 23 years)

Children: Blakeley (17), Gillian (14) and Emmett (11)

Prior political experience: none

Sher Valenzuela

Age: not provided

Education: not provided

Occupation: owner of First State Manufacturing in Milford

Residence: Milton

Spouse: Eli Valenzuela

Children: Three adult children

Prior political experience: 2012 GOP Lt. Governor candidate; primetime speaker at Republican National Convention

What are the three biggest issues facing the position?

Ken Simpler: Lack of experience; lack of focus; and lack of effectiveness. One begets the next. When we elect people to the state treasurer’s office who lack finance and money management experience, they focus on things that are not essential to the position and/or that are outside the scope of the job. This lack of focus results in neglect of core duties of the treasurer and wasteful use of taxpayer dollars. If Delawareans want an effective treasurer who is focused on the job, I urge them to vote for the person with the most experience for the position.

Sher Valenzuela: As a statewide elected official, and effectively Delaware’s Chief Financial Officer, the treasurer should be an advocate on a broad range on issues that affect the financial well-being of the state, as is the case with treasurers in other states. The top issues are (1) economic growth, (2) fiscal discipline and (3) government reform. I will use my business experience to advocate lower taxes, limited government spending and common sense regulation to achieve these goals. Integrity must return to this office. I will donate my salary to charity and won’t take the state pension and insurance.

With Treasurer Chip Flowers deciding to not run for re-election, the winner of this primary will be facing off against Democratic candidate Sean Barney. What makes you the best Republican candidate to represent the party?

KS: Experience. The state treasurer’s core responsibilities are the collection, investment and disbursement of our state’s monies. These are jobs for a money manager and finance officer. Sean Barney has no financial experience. Like Chip Flowers, he will use the State Treasurer’s office as a platform to advocate for a variety of issues. I will do the job. Over the past 20 years, I have managed a billion-dollar portfolio for a global investment firm through several financial crises and served as the chief financial officer for a hotel and property management business that I co-founded here in Delaware. Experience matters.

SV: We must draw a clear contrast between our pro-growth vision and the failed economic policies of the past, which are rooted in high taxes, heavy regulation and insider deals. That’s why my primary opponent’s past efforts to increase a tax (as part of his plan to turn part of Delaware Seashore State Park into a casino) are so concerning. You can read press coverage of his plan at www.Sher2014.com. We need a state Treasurer who will say no to more taxes, not one who would be willing to cut deals and raise taxes just to get his pet projects through.

At the heart of the problem with Flowers and the Cash Management Policy Board were questions surrounding the treasurer's role in managing the state's $2 billion portfolio. What do you think the treasurer's role is and what's the importance of the relationship with the CMB?

KS: By law, the Cash Management Policy Board establishes the guidelines for the investment of our state’s monies, and the treasurer has custody for and responsibility for ensuring the investment of our funds in accordance with such guidelines. Notably, the treasurer is one of the members of the board. A state treasurer who brings no experience in money management or finance to the board will not have the trust of that board nor add any value to the decisions of that board as to how to invest our money. I have the required experience to add value. My opponents do not.

SV: As a recent Attorney General’s opinion confirms, under Article II of our State Constitution, the state treasurer has just one Constitutional duty – namely, to pay the state’s bills as directed by the Legislature. Making investment decisions is the responsibility of an independent board (the State Cash Management Board). The treasurer DOES NOT control state investment decisions. Governor DuPont created the board. It was a wise move.  We shouldn’t politicize our state’s investments. Those decisions should be made on rational, objective criteria, not political whims of elected officials or candidates running for office. We need a seasoned business leader as treasurer who can work in a positive manner with the board to implement investment directives.

Does the state treasurer need to have experience managing a portfolio and why?

KS: None of us would put our hard-earned personal savings—whether for retirement, the down payment on a first home or a child’s college tuition—in the hands of someone with absolutely no money management experience. Why? Because we know that experience matters. Investing today is challenging. The world is full of financial uncertainty, and we need the most seasoned professionals in charge of our state portfolio’s investment and safekeeping. No one knows when the next financial crisis will strike, but when it does, Delawareans deserve to have their collective savings being managed by a professional, not a novice.

SV: Financial experts like Bruce Bachman, a former DuPont Vice President for Finance, and Joan Verplanck, the former state Chamber of Commerce President, have endorsed my campaign. They know the most important part of the treasurer’s job is not just writing the state’s checks or playing “state stockbroker.” Because the treasurer DOES NOT make investment decisions for the state, we don’t need a securities analyst or former hedge fund manager in that office. We need a proven business leader who will advocate for pro-growth, fiscally responsible policies – like limited government, lower taxes and common sense reform. That’s me.

What is the best quality of your opponent?

KS: The best qualities of my primary and general election opponents are the same. They both have a passion for representing people and they want to “do something good.” The question I pose to Delawareans is whether either one is “good” at doing the job of state treasurer. A desire to serve is commendable and necessary, but is it sufficient? Your state treasurer is the highest-ranking elected finance officer in state government. I urge Delawareans to consider putting a true finance professional in charge of our state’s finances—someone who not only cares, but who is also unequivocally competent.

SV: After formally running for Treasurer for several months and informally seeking the position for over a year, my opponent has become a very skilled politician. For example, he’s utilized an assumption some voters make about the office of treasurer to highlight his experience as a hedge fund manager. Some voters assume the Treasurer makes Delaware’s investment decisions. That incorrect line of thinking is what got Chip Flowers into so much trouble. Still, it hasn’t stopped my opponent from building an entire political narrative around his hedge fund past. From a campaign perspective, you have to tip your hat. We’ll see if it works on Election Day.