Federal and Connecticut Financial and Competitiveness Challenges No Labels, CBIA and CT Voices for Children Make Government Work Forum Hartford, CT November 22, 2013 Hon. David M. Walker National Co-Founder of No Labels and Former Comptroller General of the United States

2 The Federal Government has Grown Dramatically Federal Spending $16 Billion in 2012 Dollars 1912 Source: Historical Statistics of the United States, Millennial Edition On Line, Cambridge 2006; Congressional Budget Office, Long-Term Budget Outlook, June Compiled by TCAII

3 We’ve Lost Control of the Budget Source: Historical Statistics of the United States, Millennial Edition On Line, Table Ea636–643 Federal government expenditure, by major function: 1789–1970. Congressional Budget Office, The Budget and Economic Outlook: fiscal Years 2013 to 2023, Feb Compiled by TCAII.

4 U.S. Federal Government Debt Historical and Projected Source: CBO, 2013; GAO, 2013

5 Comparative Government Debt Burdens as a % of GDP (2012)

6 Federal Financial Sink Hole $20.4 Trillion (Your Share $72,500)

7 % Saying Deficit is a Top Priority Source: Pew Research, 2013

8 Congressional District Polarization Source: Nate Silver, 2012

9 Congressional Favorably Source: Pew Research, 2013

10 Source: 2012, Institute for Truth in Accounting Numbers in red denote burden per taxpayer, Numbers in black denote a surplus per taxpayer Taxpayer’s Burden by State Alaska $ 45,000 2.Wyoming $ 23,500 3.North Dakota $ 16,100 4.Utah $ 2,500 5.Nebraska $ 2,000 6.South Dakota $ 1,700 7.Tennessee $ Iowa $ Montana $ 1, Oregon $ 1, Idaho $ 1, Florida $ 2, Arizona $ 3, Minnesota $ 3, Arkansas $ 3, Colorado $ 3, Nevada $ 3, Virginia $ 3, Indiana $ 3, Missouri $ 4, Wisconsin $ 4, Kansas $ 5, Georgia $ 5, Texas $ 7, Ohio $ 7, Oklahoma $ 7, South Carolina $ 7, Washington $ 7, New Hampshire $ 9, Mississippi $ 10, Maine $ 11, Alabama $ 12, North Carolina $ 12, Pennsylvania $ 13, New Mexico $ 13, Rhode Island $ 14, Vermont $ 14, Louisiana $ 14, Maryland $ 14, Delaware $ 17, West Virginia $ 18, New York $ 19, California $ 23, Michigan $ 23, Massachusetts $ 25, Kentucky $ 26, New Jersey $ 34, Hawaii $ 39, Illinois $ 42, Connecticut $ 46,000

Total Unfunded Liabilities Per Taxpayer with Tax Liability Source: CCEA

12 Change in Non-Farm Payroll Source: BLS (Base Year 1990)

Select StatesOverall Ranking Texas1 Virginia3 North Carolina4 Massachusetts28 Florida29 New York34 New Jersey41 Connecticut44 Rhode Island50 13 State Competitiveness Source: CNBC, America’s Top States for Business Compiled by TCAII. Note: Categories include: Cost of Business, Workforce, Quality of Life, Economy, Infrastructure and Transportation, Education, Business Friendliness, Access to Capital, and Cost of Living.

Education Levels – Residents 25 and Older, by Tiered Levels of Poverty Source: Meeting the Challenge-The Dynamics of Poverty in Connecticut, CAFCA, CCEA, BWB Solutions

15 Effective Property Tax Rates Across Connecticut Source: Connecticut Office of Policy and Management

Pass a budget Focus on debt/GDP Address both short-term investment and structural challenges Reform social insurance programs, address health care promises and costs, engage in comprehensive tax reform, and move beyond sequester approaches Address key infrastructure, energy, education, immigration, R+D and other competitiveness challenges 16 A Way Forward – Selected Federal Actions

Honor the Constitution Comprehensive tax and regulatory reform Restructure retirement plans Address key infrastructure, energy, education and other competitiveness challenges Improve governance practices 17 A Way Forward – Selected Connecticut Actions