Office of the State Treasurer Bruce L. Poliquin State Treasurer IMPORTANCE OF FISCAL PRUDENCE Sign-up for updates at

2 DC FISCAL NIGHTMARE  Spend More Than Take In  $1+ TRILLION Budget Deficits  $15 TRILLION Federal Debt  Credit Downgrade Sources: Congressional Budget Office; Standard & Poor’s

3  50 th Rank – Worst in U.S.  Stifling Regulations  56 New Private Sector Jobs  Med Household Inc $19k/year Less vs NH MAINE BUSINESS CLIMATE Sources: 2010 Forbes Magazine; Maine Dept. of Labor; U.S. Census Bureau. Kids Leave for Jobs Elsewhere

4 HOW TO CREATE MORE PRIVATE SECTOR JOBS 1. Spend Less 2. Tax Less 3. Regulate Less 4. Lower Energy Costs 5. Lower Health Insurance Premiums 6. Reform Education Build Business-Friendly Climate

5 STEP 1. HIGH GOVT SPENDING = HIGH TAXES Sources: Kaiser Foundation; U.S. Bureau of Economic Analysis. 5,628 MEU.S. 4,000 4,500 5,000 5,500 $ 6,000 4,926 ME U.S. 17 th Highest State Spending Per Capita 7 th Highest Tax Burden % Pers. Inc.

6  Pensions for Teachers + State Emp.  Health Insurance for Teachers + State Emp.  Hospital Debt 1. ELIMINATE $3 BILLION OF DEBT Source: Maine Public Employees Retirement System. $200 Million/Year Less Spending

7  $150 Million Tax Cut 460,000 Mainers Keep More Money 70,000 Pay $0 State Income Tax Business Tax Cut for Equip Invest No Fuel Tax for Commercial Fishing Death Tax Exemption $1 $2 Million STEP 2. TAX LESS Less Expensive Live + Do Business

8  Ask Job Creators  Common Sense Changes Lobster Traps on Dock Gift Cards Maine Revenue Service Appeals Gift-a-Fish STEP 3. REGULATE LESS Easier Do Business in Maine

9 STEP 4. HIGH ENERGY COSTS = FEWER JOBS Sources: U.S. Energy Information Administration; The Tax Foundation MEU.S MEU.S. 43% Higher Electricity Cost 18 th Highest Gas Tax ¢ gal 31 17¢ kwh 16

10  All Sources Explored  Natural Gas Pipelines  Keep Hydroelectric Dams  Cheap, Plentiful, Green Canadian Power  Eliminate Taxes on Monthly Electric Bills STEP 4. REDUCE ENERGY COSTS Lower Energy Costs = More Jobs

11 STEP 5. HIGH HEALTH INSURANCE PREMIUMS = FEWER JOBS Sources: Anthem Blue Cross Blue Shield; U.S. Government Accountability Office ME NH $ Anthem Monthly Premium (40-yr-old w $5,000 Deductible) New Maine Law  Close Dirigo Health  Buy Insurance Across State Lines  High Risk Pool  Cheaper Premiums for Healthy

12 STEP 6. HIGH EDUCATION COSTS + POOR RESULTS = FEWER JOBS Sources: U.S. Government Accountability Office; Maine Community College System. 11,664 9,000 MEU.S. 8,000 10,000 11,000 $12,000 9, th Highest Cost Per K-12 Student 54% of CC Freshman Need Remedial Courses

13  Charter Schools  Flexible Curriculums  Student Performance Benchmarks  Merit Pay for Teachers  Flexible Licensing for Teachers  Seamless HS/Trade School/CC STEP 6. EDUCATION REFORMS Better Prepared Workforce = More Jobs

14 CULTURE OF DEPENDENCY Sources: U.S. Census Bureau; Kaiser Foundation; Maine DHHS. 2 nd Highest % Households Receiving Food Stamps 3 rd Highest % Population Enrolled in Medicaid 13.8 MEU.S. 8.8 MEU.S % % 9 13

15  5-Year Lifetime Limit  Waiting Period  Drug Testing  Termination of Benefits  Fraud Task Force WELFARE REFORMS More Personal Responsibility and Independence

16  Zero Based Budgeting  Eliminate Tax on Pensions  More Regulatory Reforms  More Welfare Reforms  Right-to-Work Legislation WHAT’S NEXT Spend Less, Tax Less, Regulate Less = More Jobs

17  Fiscal House In Order  Spend Less, Tax Less, Regulate Less, Borrow Less  Attract Business Investment + JOBS  Protect Natural Environment  Great Place to Live and Work IMAGINE A MAINE… Sign-up for updates at Keep our Kids Here!