Treasurer Markell Outlines Budget for Next Fiscal Year
Delaware State Treasurer Jack Markell outlined highlights from Fiscal Year 2008, discussed budgetary needs for the Office of the State Treasurer for Fiscal Year 2009, and requested a state tax deduction for contributions to 529 College Savings Plans. He also reiterated his request, should funds become available, for an increase in the state government match for contributions by state employees to their supplemental retirement plan in his annual budget request to the Office of Management and Budget.
As Markell reviewed the accomplishments from Fiscal Year 2008, he shared that the State's Deferred Compensation Program has increased its participants by 16% over last year. Markell said that currently there are more than 13,600 employees participating in the retirement savings plan. Markell again stated his support for the Delaware Legislature to increase the match amount from $10 to $20 per pay. "I'm keenly aware of the state's incredibly tight budget," Markell said. "However, if funds become available, increasing the amount of the match is a powerful tool in encouraging our State Employees to save for their own retirement."
Markell, chair of the Delaware College Investment Plan Board, also discussed the creation and launch of a website designed to provide Delawareans with information and tools to assist them in saving for college. The site, www.CollegeSavingsToolkit.com contains information on topics ranging from Getting Started, to a College Planner & Calculator, to a News You Can Use section filed with recent news pertaining to college savings, as well as a downloadable College Savings Kit.
Markell also noted that participation in the Delaware College Investment Plan continues to grow, increasing from 24,500 accounts with assets of $352 million to 26,500 accounts with assets of $405 million. Contrasting that with the 4,200 accounts and $25 million in assets seven years ago, Markell again voiced his support for a state tax deduction for contributions for college savings. "Delaware families are really beginning to grasp the importance of saving - and saving early - for college," Markell said. "We need to provide our families all of the tools that we can to assist them in saving for college, and that's why I again support such a state tax deduction for college savings."
Other highlights from the Office of the State Treasurer that Markell outlined were:
The Office of State Treasurer continues to collaborate closely with the State Auditor's Office and Attorney General's Office to combat new types of fraud. All reports of fraudulent checks or other activities that are reported to the State Treasurer's Office are forwarded to the Attorney General's Office and / or the State Auditor's Office for review. For the third year, the Office has again partnered with the United States Department of Treasurer to promote the "Go Direct" program that encourages social security recipients to utilize direct deposit as a means to prevent check fraud and identity theft.
The Treasury Operations again this year maintains a record of no new audit findings in the reconciliation area, and is continuing to expand the state's Automated Clearing House (ACH) program for state vendor payments. Currently, over 3,000 vendors are paid by ACH, with $2.4 billion in payments. Working closely with the state's disbursement bank, PNC, the Office continues to develop a comprehensive payables strategy that promotes the use of the state Purchasing Card in conjunction with ACH and check payment.
The Office of State Treasurer's education and financial literacy efforts have continued to expand and assist Delawareans. The 2007 Earned Income Tax Credit (EITC) campaign generated $17.9 million in returns by providing free tax preparation for 12,042 working Delawareans In August 2007, the Office released Delaware Facing Forward - A look at Delaware's Demographic Future. Public policy groups, non-profits, service providers, education organizations and citizens across Delaware have utilized this report as an tool to help them better understand and focus on the impact of Delaware's aging and shifting population. The Office also sees considerable interest in its Consumer Tool Chest - Financial Security Tools for Seniors which the Office produced to assist Delawareans age 50+ manage the many financial challenges unique to their population. The free women's financial education program, From Purses to Portfolios continues to flourish statewide, and the 3rd Annual Treasurer's Summit for high-school students will again provide a lasting impact on hundreds of Delaware youth. Continuing the partnership with financial professionals throughout Delaware, the Delaware Money School presents hundreds of classes free to attendees throughout the Delaware. The Treasurer's Office also continues to partner with the Delaware State Chamber of Commerce and University of Delaware, Center for Economic Education to present the Bank at School program that operates in elementary and secondary schools to teach the basics of banking to students.
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