1. REGIONAL ECONOMIC MODELS INC. DR. MARK D’AMATO SENIOR ECONOMIST Bridging Budget Gaps Modeling our Way to Fiscal Solvency

2. Dual Crisis – Fiscal 42 states have budget shortfalls, FY2012 Source: Center for Budget and Policy Priorities (CBPP)

3. Dual Crisis – Economic Source: Bureau of Labor Statistics (BLS)

4. Balancing the Checkbook What is the long-term fiscal and economic impact of… …Changing tax rates? …Broadening tax base? …Phasing out income tax and offsetting revenue losses with sales tax increase? …Cutting budget 10%?

17. Size of DEMO Economy Total Employment = 3049.946 (thous) Total Population = 5091.161 (thous) Total Estimated Revenue 2011 = 6312.192 (mil)