1. 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. 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 2012. Compiled by TCAII

3. 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. 2013. Compiled by TCAII.

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

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

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

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

8. 8 Congressional District Polarization Source: Nate Silver, 2012

9. 9 Congressional Favorably Source: Pew Research, 2013

10. 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 2012 1.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 $ 300 8.Iowa $ 100 9.Montana $ 1,000 10.Oregon $ 1,300 11.Idaho $ 1,700 12.Florida $ 2,500 13.Arizona $ 3,000 14.Minnesota $ 3,000 15.Arkansas $ 3,000 16.Colorado $ 3,100 17.Nevada $ 3,100 18.Virginia $ 3,400 19.Indiana $ 3,500 20.Missouri $ 4,600 21.Wisconsin $ 4,800 22.Kansas $ 5,200 23.Georgia $ 5,300 24.Texas $ 7,400 25.Ohio $ 7,400 26.Oklahoma $ 7,600 27.South Carolina $ 7,800 28.Washington $ 7,900 29.New Hampshire $ 9,000 30.Mississippi $ 10,400 31.Maine $ 11,500 32.Alabama $ 12,100 33.North Carolina $ 12,600 34.Pennsylvania $ 13,300 35.New Mexico $ 13,600 36.Rhode Island $ 14,000 37.Vermont $ 14,500 38.Louisiana $ 14,600 39.Maryland $ 14,800 40.Delaware $ 17,700 41.West Virginia $ 18,600 42.New York $ 19,800 43.California $ 23,500 44.Michigan $ 23,600 45.Massachusetts $ 25,500 46.Kentucky $ 26,700 47.New Jersey $ 34,200 48.Hawaii $ 39,900 49.Illinois $ 42,000 50.Connecticut $ 46,000

11. Total Unfunded Liabilities Per Taxpayer with Tax Liability Source: CCEA

12. 12 Change in Non-Farm Payroll 1990 - 2013 Source: BLS (Base Year 1990)

13. 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 2012. 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.

14. 14 2010 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. 15 Effective Property Tax Rates Across Connecticut Source: Connecticut Office of Policy and Management

16. 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

17. 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