meg's plan for building a new california

8/9/2019 Meg's Plan for Building A New California

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My campaign is focused on threeprimary goals:

I am running to reinvigorate Californiaseconomic potential and help employerscreate two million new jobs by thebeginning of 2015.

I am running to rid our stategovernment of waste, duplication andinefficiency so we can get control ofrunaway spending and create long-termfiscal stability.

I am running to fix our failing schools

so we can give our children theopportunity to advance up the economicladder and achieve their fullest potential.

If you have ideas on how we canmove California forward, please contactour campaign. We will listen. We wantthis campaign to be special, one thataddresses your concerns and speaks toyour hopes for what A New Californiacan be.

Sincerely,

Thank you for taking a fewmoments to learn more about

my ideas for building A NewCalifornia. I appreciate yourinterest in my campaign and

hope my policy agenda will provide youwith a better understanding of the typeof governor I hope to be.

This is a very difficult time in ourstates history, but I am still optimisticabout Californias future. Ronald Reaganonce said that America is too great forsmall dreams. The same is true for our

Golden State.I am running for governor because

I believe everything is still possible inCalifornia. But to restore the promiseof our state, we must first clean upthe mess in Sacramento. We have tobe honest about our problems, offergrown-up solutions and put an end to thepartisan bickering and hand-wringing thatis business as usual.

Dear Fellow Californian,

FROM MEG WHITMAN

BuildingANewCalifornia

Meg Whitman


4/48# MEG WHITMANS POLICY AGENDA FOR A NEW CALIFORNIA4 MEG WHITMANS POLICY AGENDA FOR A NEW CALIFORNIA


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MEG WHITMANattends a Veterans Day celebration in Redwood City organized by American Legion Post 105

2010Contents

LETTER FROM

MEG WHITMAN

3 lWHY Meg IsRunning forGovernor

Create Jobs

Cut GovernmentSpending

Fix Education

CALIFORNIA IN CRISIS

8 l CLEANINGUp theSpending Mess inSacramento

OTHER

PRIORITIES

36l SECURINGOur Border to StopIllegal Immigration

38l PROTECTINGthe Environment

40l FIGHTINGCrimeto Keep OurCommunities Safe

ON THE HORIZON

42 lMEGS Vision forA New California

44 lAbout Meg Whitman

30l FIXEducation31l Direct More Money

to the Classroom

32l Reward OutstandingTeachers

32l Eliminate the Capon Charter Schools

32l Grade the PublicSchools A-F

32l Establish A Fast-Track ParentProcess for CharterSchool Conversion

33l Invest $1 Billionin the UC andCSU Systems

33l Utilize AlternativePaths to theClassroom to

Attract High-QualityTeachers

20 l CUTGovernmentSpending

22 l Control the RapidGrowth in StateSpending

24 l Improve theEfficiency andEffectiveness ofState Government

26 l Solve CaliforniasPension Crisis27 l Bring Real Welfare

Reform to California

28 l Bring More Efficiencyto State Revenue

10 l CREATE Jobs11 l Provide Job-Creating

Tax Cuts

14 l Streamline andReform Regulations

16 l Recruit New Industriesand Retain ExistingEmployers

17 l Solve CaliforniasWater Crisis

18 lMegs Road Mapto 2 Million NewPrivate-Sector Jobsby 2015

ON THE COVER:(From left to right, top to bottom) Meg Whitman at her campaign kickoff rally in Fullerton; Meg Whitman at a Fresno

packing company; Meg Whitman and her Agriculture Coalition Leadership team; Meg Whitman speaks before the Rossmoor RepublicanClub, Southern Division; aerial view of Sacramento farmland; Meg Whitman speaks with a young supporter at the Orange County Fair;

photo of Mount Shasta; the California state flag; image of Californian panning for gold; Meg Whitman at the Sacramento GOP Central

Committee Christmas Party; students for Meg at the California Republican Party Convention in Palm Desert; a map of the state of

California; Meg Whitman meets with supporters at a town hall in Orange County.

BUILDING A NEW

CALIFORNIA


6/48# MEG WHITMANS POLICY AGENDA FOR A NEW CALIFORNIA

Meg Whitman is

determined to bring

a new approach to

Sacramento, one

hat demands more

efficiency and better

services, one that

equires less spending

and lower taxes, and

one that makes a

enewed commitment to

mproving our schools

and creating jobs.

6 MEG WHITMANS POLICY AGENDA FOR A NEW CALIFORNIA


7/48California in Crisis



Cleaning Upthe Spending Mess in Sacramento

CALIFORNIA IS DANGEROUSLYo track. Our unemploy-ment rate of more than 12percent is at a near record high.The economic crisis in the statehas resulted in more than twomillion Californians unable tond a job.

The state budget is miredn annual decits. The spend-

ng shortfall over the next18 months is estimated to be$20 billion and there is no endn sight to the red ink and calls

for higher taxes. Instead ofmaking the tough decisions tosolve the structural problems instate government, the politiciansn Sacramento have turned to

one-time gimmicks and end-ess borrowing. As a result, the

amount of the state budget thats spent on servicing the debt

has increased by 143 percentsince 2000 and is expected toncrease by another 50 percentn the next ve years. This is lost

money that pays for the creditcard bills of the past instead ofstaying in the bank accounts oftaxpayers and small businessesor being invested in vital statepriorities, such as roads, higher

education and law enforcement.Economic growth is the life-

blood of any state, but employersare leaving California in droves.Last year, the state of Californiahad 45 percent more businessdeaths than births, in large partbecause the state now has the48th-worst business tax climaten America, according to the

Tax Foundation. Californias

regulatory burden costs smallbusinesses almost $500 billion

a year and has been estimated tocost our state nearly four millionnew jobs.Forbes magazine, amust read for corporate decisionmakers, ranks California 39thamong states for overregulation.Frivolous litigation presentsanother obstacle to job growthand a higher standard of living.California has the 44th-worst

lawsuit climate, with more than

California, which was onceadmired as the center of innova-tion and excellence in the world,has now become branded as theungovernable state. While thechallenges we face are daunt-ing, Meg Whitman believes thatCalifornias best days are aheadof us.

As one of the most eective cor-

porate leaders in America,Meg has learned how tomanage big, complicatedorganizations. She knowshow to motivate people tobring about change. Shebelieves in the power ofdecentralization, local em-powerment and results-driven accountability. Meghas a vision to create a

stronger, more prosperousCalifornia that is borneout of the lessons learnedfrom working in world-class businesses such as

eBay, Disney and Hasbro, whereif you dont deliver, youre shownthe door.

At eBay, Meg learned how tech-nology and decentralization canbe harnessed to deliver powerful

results. She grew eBay from astart-up with 30 workers to aglobal company with more than15,000 employees and nearly$8 billion in revenue.

Meg has outlined a bold andachievable policy agenda to turnCalifornia around and reclaimour rightful status as AmericasGolden State.

It starts with creating jobs,

cutting spending and xingeducation. n

1.4 million lawsuits led eachyear. Rankings like these arenttrivial. They matter when busi-nesses are making choices aboutwhere to locate their jobs.

The situation in our schools isjust as unacceptable. Despitespending nearly half of the statesbudget on education, Californiasschools are failing to prepare ourkids to compete for the jobs of thefuture. By some estimates, only60 percent of education spendingactually reaches the classroom.Californias schools rank in thebottom ten in math, reading andscience scores. We can do dra-matically better by our students

so they can build bright futuresin our state.

When nearly 80 percent of

Californians are telling us the state

is headed in the wrong direction,

it is time to try something new.

I am not a politician with pride of

authorship in failed ideas. I am a

leader from the world of business

and job creation who will be honest

about whats needed to rebuild

our state. Meg Whitman

8

CRISIS


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Building ANew California

0 MEG WHITMANS POLICY AGENDA FOR A NEW CALIFORNIA

Meg Whitman has a

plan to prime Californias

economic pump to start

creating jobs immediately.

Megs plan will make

California competitive

again with neighboring

states, raise our standard

of living, grow our tax

base and help put an end

to the perpetual budget

problems in Sacramento.


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PROVIDE JOB-CREATINGTAX CUTS

JOBS

Create Jobs

With California facing a$20 billion decit, we have to

be strategic and e

ective in thetax relief we provide. Whilemaking cuts in marginal taxrates is a very important goal,at this moment we simply can-not aord a big, across-the-boardtax cut that would irresponsiblygrow the states already over-sized debt level and drop ourbond rating to junk status.

While it is true that marginaltax cuts do create greater rev-

enue, economic history showsthat there is a lag time beforethis new revenue comes in. Withthe scal crisis California facestoday, the reality is that the statemust rst start seeing growingstate revenue from an economicrecovery before across-the-boardtax cuts can be provided. In-stead of promising immediate,across-the-board tax cuts now,

Meg has a better, more realisticplan: spark job growth now byquickly enacting targeted taxcuts that are aordable and im-mediately impact key sectors ofour economy to create new jobs.Once our economy begins to growagain and spending has been cut,Meg will provide broad-based in-come tax relief and take steps tosimplify Californias tax system.

AS GOVERNOR, MEG WILL:

ELIMINATE THE SMALL

BUSINESS START-UP TAX

Meg will eliminate the $800

fee that new business start-upsare currently required to payin California. Entrepreneursshould not be penal-ized for launchinga business venture.The LLC ling fee isnothing more thana tax on jobs. Thestate that put start-up into the nationallexicon needs to

repeal this tax.

ELIMINATE THE

FACTORY TAX

California is only one of threestates that taxes manufacturingequipment without oering a taxcredit or exemption. The factorytax is a major obstacle to keep-ing high-paying manufacturing

jobs in California.

INCREASE THE RESEARCH AND

DEVELOPMENT TAX CREDIT

Meg will increase the R&Dtax credit for California busi-nesses from 15 percent to20 percent, which conforms tothe federal level. This is thesame level of tax credit thatmany of the states we competewith oer today. This tax cutwill promote investment in the

technologies and industries ofthe future. California is the

innovation capital of the worldand our tax policies need to bealigned to support our majoreconomic advantages.

PROMOTE INVESTMENTS FOR

THE AGRICULTURE INDUSTRY

The agriculture industry isvital to Californias economy.Meg believes that by providing

a tax credit to encourage invest-ments in water-conservationtechnology, we can reduce our

states consumptionand benet all Cali-fornians.

ELIMINATE THE

STATE TAX ON

CAPITAL GAINS

California is oneof a few states in thecountry that doesnttax capital gains

at a lower rate thantraditional income. This is doubletaxation at its worst. Californiastax treatment of capital gains isa major impediment to capitalformation and investment in new

jobs. We should align Californiastax treatment of capital gainswith other competing states.

AK, FL, NV, NH, SD,TN, TX, WA and WY

Have No StateCapital Gains Taxes

DID YOUKNOW?

Excessive taxation starvesour economy of innovationand entrepreneurship.We need to build the newCalifornia economy withthe goal of making it easierto start a new business and

create jobs in our state. Meg Whitman



$53BILLION

2008

ESTABLISH ACADEMIC

ENTERPRISE ZONES

Meg will take advantage ofhe academic excellence at our

universities and create economicopportunity zones to encouragebusinesses to locate within aspecied zone around these

nstitutions. Tax incentives of-fered within these zones wouldbe focused on hiring workers,promoting research and develop-ment, increasing access to statefunds and loans and encourag-ng a close collaboration with

universities. For example, theUniversity of California, SanDiego and the biotech regionof San Diego are closely linked

and provide leverage points forsignicant economic growth andob creation. The same is truen communities where other

UC campuses are located.

ACCELERATE DEPRECIATION

OF NEW BUSINESS EQUIPMENT

Meg will provide a morefavorable depreciation scheduleo encourage farmers, manu-

facturers and other companies

o invest in new equipment andechnology that will make them

more competitive and able tohire Californians.

JOBS

2

Accordingto Forbesmagazine,

Californiasdebt burden is

the 47th highest

in the nation.

GENERAL FUNDBOND DEBT

$23BILLION

1999

PROVIDE A $10,000 TAX

CREDIT FOR HOME PURCHASES

To encourage homeownershipand lessen the economic damageof last years mortgage crisis,Meg will provide a $10,000 taxcredit to the buyers of new andexisting homes. This will boost

Californias real estate industryand improve the values of exist-ing homes.

PROVIDE A TAX CREDIT FOR

GREEN TECH JOB CREATION

California has the ability tolead the nation in the develop-ment of green tech jobs. Thestate has always been an innova-tive leader and it is time to take

advantage of this great economicopportunity by investing in jobcreation. Meg will create incen-tives for employers to creategreen tech jobs by osetting partof the cost of hiring new workersthrough a tax credit. These cred-its will apply only to permanent

jobs directly involved in thedevelopment of alternative en-ergy and other environmentallyfriendly technologies.

A FINAL WORD:

CALIFORNIAS DEBT CRISIS

Megs tax plan would be asignicant economic boost to thestate, without making the jobof cleaning up the budget messimpossible. Meg believes thattoo much debt is irresponsible.We cant continue to use gim-micks to patch up the structuralproblems with the General Fund,while billions get added on top ofthe states debt. Instead, Meg ispromoting a balanced approach.Cut targeted taxes, clean up thespending mess in Sacramento andthen use new revenues once thebudget has been stabilized to pro-vide marginal tax rate reductionsand make Californias tax systemsimpler and fairer. Its calledgrown-up leadership, not a bunch

of election-year political promisesthat will never come true. n

We cannot continue tohave one of the worst taxenvironments for jobs in

America and expect to remainthe Golden State. My tax cut

plan encourages research anddevelopment, promotes capitalformation and investment innew jobs and provides targetedtax relief to jump-start oureconomy. Long term, were

going to reduce marginal ratesand modernize Californiastax structure once our budgetsituation has been stabilized.

Meg Whitman


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HISTORI

CAL

D

EBT

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

$2,000

$1,800

$1,600

$1,400$1,200

$1,000

$800

$600

$400

$200

$0

JOBS

600,000The number of manufacturing jobs Californiahas lost since 2000, which equals 32 percentof the states industrial base.

48THThe rank of Californias business tax climate.Our key competitors Washington, Nevada andUtah rank in the top 10.

4 OF 6Of the nations metro areas with thehighest foreclosure rates are in California.

$500On average, each California household ispaying about $500 this year to service thestates debt.

FAST FACTS

PERCAPITABOND

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14/48# MEG WHITMANS POLICY AGENDA FOR A NEW CALIFORNIA4

STREAMLINEANDREFORMREGULATIONS

The cost of governmentregulations for the

average resident inCalifornia is morethan $13,000 a year.

The number of jobs that would be created if Californiasregulatory environment were to improve from the 39thworst in America to the 35th. Each additional five-pointimprovement would bring another 500,000 jobs.

Californias workerscompensation costs,

per $100 of payroll, arestill 166 percent higherthan the national median.166

%

500THOUSAND$13HOUSAND

PROVIDE A ONE-STOP PATHWAY

TO BUSINESS LICENSING

Right now a new businessin California has to navigate amaze of government bureaucra-cies to receive its necessary per-mits. Oftentimes there are more

than eight di

erent applicationsfrom a multitude of dierentagencies that must be completed.This level of duplication isconfusing and costly. Meg willstreamline this unwieldy processby creating a one-stop, user-friendly website and a commonapplication for business permits.This practice is used eectivelyin Texas, which has signicantlyimproved its business climate in

the past decade.

HARMONIZE

REGULATORY AUTHORITY

Too often, overlapping claimsof jurisdiction by governmentbodies create disjointed poli-cies and regulations that harmemployers and fail to achieve theworthy objectives of the underly-ing goals. As governor, Meg will

issue an Executive Order torequire agencies, departments,boards and commissions to re-view their jurisdictional author-ity and report overlapping areas.The goal is to eliminate redun-dant functions and programsand expedite compliance.

MODERNIZE WORKERS

COMPENSATION REFORMS

Californias landmark 2004

workers compensation reformsinitially succeeded in makingour system more competitive andfair to employers, but costs arebeginning to increase again. Megwill take steps to ensure thatour workers compensation costsare kept in check and do not

While working at eBay,

I gained a deeper, more personal

understanding of the damaging

effect that unfounded regulations

and frivolous litigation can have

on small businesses. The economic

toll of heavy-handed government isone of the reasons that motivated

me to run for governor. When we

improve the regulatory environment

in California, we will have an

immediate positive impact on the

jobs climate. Meg Whitman

To work in tandem with herargeted tax cut plan, Meg has

outlined a series of reforms andnitiatives that will provide

meaningful relief to employ-ers and consumers from costlyregulation and frivolous litiga-ion. These policy changes willmprove the jobs climate in Cali-

fornia and send an important

message that the state is onceagain serious about recruitingand retaining businesses. Athis time, cutting regulatory anditigation costs is a more respon-

sible way to reboot Californiaseconomy than across-the-boardax cuts. Doing so will have the

same stimulative eect as a bigax cut without blowing a larger

hole in the budget and adding

o the states already troublingevel of debt.

AS GOVERNOR,

MEG WILL:

IMPLEMENT A

STRATEGIC TIME-OUT

ON NEW REGULATIONS

On taking oice, Meg will

impose a moratorium onall new state regulationsuntil a 90-day review of the eco-nomic impact and relevance ofexisting laws is completed. Therewould be exceptions made forrules and regulations governingpublic health and safety.

REQUIRE AN ECONOMIC

COST-BENEFIT ANALYSIS

OF NEW REGULATIONS

Meg will ensure that newstate regulations are given athorough economic cost-benetanalysis before they are adopted.Too often when a departmentor agency conducts an economicanalysis, it is merely perfunc-tory without a true assessment

of the economic impact. In theWhitman Administration, therelevant regulatory bodies willbe required to identify any nega-tive economic impact. If thereis an economic cost, the Admin-istration will ensure its in thepublics best interest.

JOBS


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vastly exceed those of competingstates in the West, while alsoprotecting our workers.

GIVE A FRESH LOOK

TO AB 32

Meg is committed to promot-ing policies that ensure Califor-nia remains a leader in cleantechnology. She will preserve ourstatus as worldleader in alter-native energydevelopmentand the ghtagainst climatechange. The nextgovernor mustrecognize, how-

ever, that thingshave changedsince AB 32was enacted in2006. The statesunemploymentrate has nearly tripled sincethen, growing from 4.6 percentto more than 12 percent today.

A recent study conducted by theBusiness School Dean of Califor-

nia State University, Sacramentoestimated that AB 32 would costCalifornia businesses more than$100 billion to implement andwould destroy one million jobs.The state simply cannot aordthis economic cost, which couldreach $50,000 on average forsmall businesses. To ensure Cali-fornias climate change law doesnot become a dangerous job-kill-er, Meg has called for a one-year

moratorium on specic AB 32regulations. This additional timewill allow for careful examinationof the true costs and benets ofeach proposed rule. Megs goal isa smart, thoughtful and balancedapproach that keeps Californiaat the forefront of the green

economy, while also protectingour workers and their jobs.

IMPROVE CALIFORNIAS

LABOR LAWS AND

WORKPLACE FLEXIBILITY

Californias labor laws are

antiquated and burdensometo job providers. One glaringexample is the rigid rules that

prohibit businesses from oeringfamily-friendly, exible schedulesto their workers. While moststates dont start counting over-time until 40 hours have been

worked, employers in Californiaare required to pay higher wagesafter more than eight hours havebeen worked in a single day.Meg would update Californiasworkplace laws so that workerscould enjoy more exibility intheir schedules, such as workingfour, ten-hour days instead ofve, eight-hour days. This willreduce traic congestion and freeup parents to spend more timewith their children. It will alsoallow employers to better managetheir workforce to respond to thedemands of their customers.

END LAWSUIT ABUSE

According to the U.S. Cham-ber of Commerce, California has

JOBS

15

Amount that the city of Los Angelesspent on litigation-related expensesin 2008, enough money to pay for thesalaries of 1,271 police officers.

There are now moreCalifornians out of workthan the respectivepopulations of 15 states.

Average number ofhours drivers in Los

Angeles spend stuckin traffic per year.$72MILLION 15 70

CALIFORNIA: 44TH WORST

LAWSUIT CLIMATE IN US 1CALIFORNIA: 49TH LEAST FRIENDLY

STATE FOR SMALL BUSINESS 2

BEST WORST BEST WORST

the 44th-worst environment forlawsuit abuse in the country.The Civil Justice Association ofCalifornia, citing a recent study,estimated the tort system inCalifornia costs almost$32 billion annually. Ironically,

California is also the statewith the nations best medicalliability laws. Meg will extend

the states successful $250,000cap on punitive damages inmedical liability lawsuits toother tort cases involvingproduct liability. She will also

reform anti-jobs litigation, suchas the onerous Sue Your Bosscases, the states version of ADA(Americans with Disabilities

Act), which is so often usedto extort attorneys fees, andother similar laws pushed byCalifornias labor unions andtrial lawyers. Meg will pursueclass action reform to set limitson plainti lawyers contingencyfees and end a system that only

benets the lawyers who lethe lawsuits. Meg also wantsto end the use of greenmail frivolous lawsuits led by nar-row interest groups to exploitenvironmental laws to benettheir own agenda, not what thelaws intended.n



California is losing jobs to com-

peting states such as Arizona,Nevada and Texas, not onlybecause our regulatory and taxcosts are excessively high, butalso because our state oicialsdo not do an eective job ofselling Californias economicattributes to existing and pro-spective employers. In a majorblow to the states economy,Northrop Grumman announced

n January that it is moving itscorporate headquarters fromLos Angeles to the Washington,D.C. area, taking hundreds ofobs with it. Northrop Grummanoins Nissan North America,

Computer Sciences Corpora-ion and Hilton Hotels as

marquee employers that haveeft California in recent years.

Compounding the problem,Toyota announced last year that

t was shuttering its NUMMIauto plant in Fremont, costingCalifornia nearly 5,000 jobs.


HEAD AN ECONOMIC

DEVELOPMENT SALES FORCE

California suers from hav-ng a reputation as the most

hostile place to do business inAmerica. The state needs tohave a dedicated team of eco-nomic development profession-als who have the sole missionof selling the states positiveattributes to new businessesand existing ones. This models being used successfully by

our major competitors such as

Texas, Arizona and Nevada. It istime to put a sign up that saysCalifornia is once again open for

business. Meg will operate as thestates Chief Sales Oicer andwill also empower a Jobs Om-

budsman to work with new andexisting employers to navigatethe various regulatory agenciesand departments that impacttheir businesses. This positionwill be an advocate for job pro-viders and will help change thestates culture and reputation ofbeing hostile to business.

RECRUIT THE BEST AND

THE BRIGHTEST WITH

MORE H-1B VISAS

Ensuring that California hasa highly skilled workforce is es-sential to recruiting and retain-ing businesses in high-growthsectors such as alternative ener-gy, biotech and information tech-nology. There are currently tens

RECRUIT NEW INDUSTRIES ANDRETAIN EXISTING EMPLOYERS

of thousands of eliteforeign studentswho are here legallyon student visas,

studying in Americancolleges and universitiesto obtain advanced de-

grees in math, science, econom-

ics and business management.Our immigration laws should bereformed so that our economycan benet from the knowledgethese students have obtained inour universities instead of beingforced to take their skills back totheir native countries and joinbusinesses that compete withthe United States. Meg supportsincreasing the number of H-1Bvisas awarded each year. n

JOBS

Im tired of losing pioneering

California companies such as

Northrop Grumman to other

states. Ive been a Fortune 500

CEO and I know how to get

businesses to stay here or move to

California. My Administration

is going to listen to their concerns,align our policies to make them

more competitive and aggressively

recruit their counterparts in other

states to bring their good-paying

jobs here. Meg Whitman

2/3Two-thirds of studio movies arenow made outside of California.


17/4817

JOBS

Turning our back on the states

ongoing water crisis is turningour back on jobs. As a majorglobal supplier and the mostagriculturally productive statein the nation, Californias agri-cultural industry is not one wecan aord to lose because of lackof political foresight. In order toremain a leader in agriculture,we must face the signicantwater supply issues that arecurrently plaguing our state andcosting us thousands of jobs.Meg is committed to addressingCalifornias water problems andhas endorsed the water bondthat will appear on the Novem-ber ballot.


SUPPORT THE TWO GATES

PROJECT

Meg supports building anintermediate solution to increas-ing our states water supply.The Two Gates project pres-ents a viable solution thatwould protect the Delta smeltwhile increasing water ow.

SUPPORT THE CONSTRUCTION

OF ABOVE AND BELOW-GROUND

WATER STORAGE

Meg believes that Californianeeds to make investments ininfrastructure to ensure that wehave adequate reserves of waterto address future droughts andshortages.

SECURE CALIFORNIAS WATER

SUPPLY BY CONSTRUCTING AN

ALTERNATIVE CONVEYANCE

SYSTEM

In order to maintain a reli-

able source of safe drinkingwater, Meg believes it is vital to

SOLVE CALIFORNIASWATER CRISIS update our water delivery

system. As a solution toprotecting the Deltas

critical environments, a new

conveyance system would helprelieve pressure on the Deltawhile safeguarding Californiaswater supply.

STRENGTHEN OUR

CONSERVATION EFFORTS

Meg will call on all Cali-fornians, urban and rural,residents and industry, toconserve one of our mostimportant resources. She

will be a champion forincentives that encouragebusinesses and homeown-ers to conserve water.Meg believes that newtechnologies and conservationstrategies are vital to becom-ing sustainable and that it isimportant that we continue toview conservation as part of theoverall solution.

PROMOTE THE USE

OF TECHNOLOGY

Meg believes that technolo-gies such as desalination andwater recycling must not beoverlooked as promising solu-tions to our water crisis. Asgovernor, she will work to reducethe regulatory barriers thatare preventing California fromattracting companies that will

help build the technology weneed to sustain a reliable watersupply. n

95,000Economists from the

University of California,Davis forecasted theexisting drought and

water restrictionscould cost our already

battered state economyup to $2.8 billion and

95,000 jobs.

9 of the top 10 agriculture-producingcounties in the nation are in California.9 outof 10



JOBS

Megs Road Map to 2 Million N

REGULATORY REFORM

My team and I

have dissected the

California economy,identified the growth

opportunities and constructed a policy

agenda that will put us on a pathway

to the creation of two million jobs by

the beginning of 2015.

Meg Whitman

NEW JOBS

CREATED BYINDUSTRY*

*IMPORTANT NOTE ON ESTIMATES: The Road Map outlines estimates in growth in employment by industry as an outcome of a full implementation of Megs job plan. Thisis a target estimate only. The figures provided on this page are the result of a detailed economic and policy analysis but are intended only as initial estimates. No expertor group of experts can accurately predict or guarantee the future, and the exact state and federal policy environment California will face over the next four to five years, as

well as the condition of the global economy, is always uncertain. These estimates are a goal that the Whitman Administration will aggressively pursue. Actual sector-by-

sector numbers may evolve over time as conditions change. A strong overall net growth in California jobs will be the Whitman administrations top priority.

Implement Strategic Time-Out New Regulations

Perform Cost Analysis of New Regulations

Harmonize Regulatory Authority

Modernize Workers Comp Reforms

Review AB 32

Improve Workplace Flexibility

End Lawsuit Abuse

Provide One-Stop Business Licensing

ALL OTHER INCLUDES: Transportation, wholesale

trade, utilities, mining and other industries

Agriculture

Construction

Manufacturing

Retail

Information

Financial

Services

Business

Services

HealthCare

Education

Leisure&

Hospitality

AllOther*

Agriculture

47,000

Financial Services

91,000Business Services250,000

Construction

94,000

Manufacturing

208,000

Retail

375,000

Information

65,000

Health Care

181,000

Education

42,000

Leisure &Hospitality

192,000

All Other1

536,000


19/48

JOBS

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%All Other*Leisure &

Hospitality

EducationInformation Health CareRetail Business

Services

Manufac-

turing

Financial

Services

ConstructionAgriculture

TARGET INCREASE IN INDUSTRY EMPLOYMENT

Megs jobs plan is designed to return our state to full employment. This is an ambitiousgoal, but it can be accomplished if California reforms its tax, regulatory and statutory

policies with an eye toward fostering innovation and entrepreneurship. Washington, D.C.must also play a role, by supporting fiscal policies that lead to the creation of new jobs.

To put Megs jobs goal in perspective, there are approximately 1.3 million smallbusinesses in California. If each one of them created just one new job, Meg wouldbe two-thirds of the way to her goal.

Unlike others in politics who simply make promises, Meg Whitman has a detailedstrategy to create good new jobs. Meg and her team have analyzed Californiaseconomy and have created a sector-by-sector strategy for job creation.

w Private-Sector Jobs by 2015

TAX RELIEF

EFFECTIVENESS OF KEY POLICY COMPONENTS

HIGH IMPACT LOW IMPACT

Promote Investments for the Agriculture Industry

Eliminate Factory Tax

Increase R&D Tax Credit

Eliminate Start-Up Tax

Eliminate the State Tax on Capital Gains

Establish Academic Enterprise Zones

Accelerate Depreciation of New Equipment

Provide Homebuyers Tax Credit

Establish Green Job Creation Tax Credits

Agriculture

Construction

Manufacturing

Retail

Information

Financial

Services

Business

Services

HealthCare

Education

Leisure&

Hospitality

AllOther*


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The bottom line: Over the last decade California governmentspending has grown out of control. Meg has outlined

several areas of the budget where $15 billion of spending

eductions can ultimately be realized. This will be hard

work, requiring tough decisions. But Meg Whitman has

he real-world management skills to bring a new approach

o governing that requires accountability, efficiency and a

do more, do better with less mentality.

22

Cut Spending

Control the Rapid Growthin State Spending

I n the decade preceding thestart of the recession and lastyears ensuing budget crisis,state spending had increasedby nearly 80 percent. To closehe budget hole created byhis spending binge and the

economic downturn, politiciansn Sacramento passed one of theargest tax increases in Califor-

nia history. But Sacramentosappetite for more and morespending still remains.


Institute a StrictSpending Cap

To inject a level of certaintynto the budget process, Meg

will propose a strict spendingimit based on the states Gross

Domestic Product. This budgetreform will lock spending inat a rate that will not increaseunless the states economy isgrowing with it. The spending

cap will enforce

scal disciplinehroughout state government

and protect taxpayers from fu-ture tax hikes.

Defend the Two-Thirds

Budget Requirement

Meg will oppose any attempt

to repeal Californias require-ment to have a two-thirdsmajority in the Legislature topass a budget agreement or taxincrease. Lowering the thresholdto a simple majority is nothingmore than a license for Sacra-mento to raise our taxes.

Turn Sacramento Into

a Part-Time Legislature

Meg will support a constitu-

tional amendment that wouldturn Californias full-timeLegislature into a part-timeLegislature with a greatlyreduced salary. If servingin Sacramento were apart-time job, maybe wewouldnt have so manyfull-time spenders in theCapitol. We need citizenlegislators, not profes-sional politicians. Its time

to Cut Their Pay andSend Them Home. n

SPENDING

We need to put the

brakes on the spendingescalator in Sacramento.

Were not going to spend

ourselves to economic

prosperity, but we could

tax our way to permanent

underemployment.

Meg Whitman

State government is more

than 20 years behind

Silicon Valley in terms

of utilizing modern

technology to drive

efficiencies and lower

costs. Were going to make

Sacramento catch up.

Meg Whitman


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SPENDING

W hile Meg does not supportraising taxes, she does be-ieve it is important to maximizehe amount of revenues that are

available to the state. This canbe done by better leveraging Cal-fornias political strengths, con-

solidating tax collecting agenciesand addressing the donor stateproblem in Washington.


Get Californias Fair Share

from Washington, D.C.

Despite the recent glut of gov-ernment bailouts and stimulusspending, California remains oneof the highest donor states in thenation. The federal governmentsrefusal to pay its share for thencarceration of undocumentedmmigrants and the constant im-

position of unfunded mandates,such as the potential of billionsof dollars of new Medi-Cal costsassociated with national health

care reform, is a major strain on

the state budget and Californias

taxpayers. Furthermore, thefederal government has failed toadequately invest in Californiastransportation network, a vitalpart of our nations internationaltrade infrastructure.Our state has themost powerful con-gressional delegationin Washington. Megwill work closely

with Democraticand Republicancongressional lead-ers and leverage thestates political andeconomic resourcesto get a better returnon the tax dollarswe send to the federalgovernment.

Run the Lottery More

Like a BusinessThe California State

Lottery is a businessthat exists to makemoney for education.Like any other busi-ness, the lottery shouldbe allowed to modern-ize and be given theexibility to make itsgames more attractive

to customers, thusincreasing the nancialbenet to schools. Thelottery has to be giventhe authority to adoptthe best practices fromother state lotteries,including removing ar-cane technology restric-tions, increasing prizepercentages, removingticket dispenser limita-

tions and letting the

lottery invest unclaimed prizesand interest income in bettertechnology.

Consolidate Duplicative

Tax Collection Agencies

Californias many taxes arecollected by three principaldepartments, which shouldbe merged to gain eiciencies,eliminate redundancies, improverevenue prediction and, mostimportantly, make it easier for

people to deal with thestate bureaucracy.Today, the FranchiseTax Board collectspersonal income andcorporate taxes, the

Board of Equalizationcollects business salesand use taxes, prop-erty taxes, and exciseand special taxes,and the EmploymentDevelopment Depart-ment collects payrol-

land employment taxes. Justby consolidating databases, thetax agencies would gain obvious

advantages in e

orts to root outtax fraud and abuse. n

28

Bring More Efficiency

to State Revenue

We are going to have to skinny-

down state government with

major reductions in spending

and bureaucracy. But there is

also money that is being left on

the table because we dont get

a fair return on the dollars we

send to Washington. Meg Whitman

50%Of the 38 million

people living inCalifornia, 144,000are paying almost50 percent of thestates personalincome taxes.


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EDUCATION

31

Meg Whitmanon Fixing

CaliforniasSchools


DIRECT MORE MONEY TO THE CLASSROOM

Only 60 percent of education spending in Cali-

fornia actually reaches the classroom. Meg willusher in reforms that will collapse the states morethan 50 categorical grants, many of which areduplicative and far too prescriptive, into simpliedgrants for special education, rewarding outstand-ing teachers and schools, and other programs thatcontribute to greater student achievement. Theremaining state funding will ow directly to localschool districts in the form of a unied block grantthat can be used as local administrators, princi-pals, teachers and parents deem best.

Californias long-term economic viabilityand competitiveness is directly connectedto the quality of the education system in

our state. The state that is home to Silicon Valleyis 43rd in science. Thats unacceptable. Californiahas to do a better job of educating our kids. If ourschools dont improve, our prisons will continueto be overcrowded, welfare costs will continue tospiral upward, and we will lose our ability to be acenter of innovation. Our tax base will shrink fur-ther, putting more burdens on working families

who will end up paying far more in taxes for infe-rior government services. Its a cycle that must bereversed, and it has to start with game-changingeducation reform.

Meg is setting a goal of moving the states testscores from near worst in the nation to the frontof the class.

EDUCATION SPENDINGIN CALIFORNIA

60%Reaches theclassroom

40%Goes tobureaucracyand overhead



REWARD OUTSTANDING

TEACHERS

To attract high-quality pro-fessionals into teaching and toreward those teachers who are do-ng an excellent job in our schools,

Meg will institute a system that

provides special bonuses to high-achieving teachers, administra-ors and schools. This will be anmportant catalyst to improving

student achievement in all ofCalifornias schools.

ELIMINATE THE CAP

ON CHARTER SCHOOLS

Meg will eliminate Californiascap on charter schools. There isno need to have an articial bar-

rier in place to limit the optionsfor our students and parents. Megs a strong supporter of charter

schools and will be an advocatefor utilizing them more fully tocreate competition in the publicschool system.

GRADE THE PUBLIC SCHOOLS A-F

Meg will institute a systemhat grades our schools A-F so

parents can easily understandhow well their childrens schools performing. The grades will

be posted online and parents willbe given the option of transferringheir kids out of failing schools

or converting to a charter school.Meg will also support other in-erventions for underperforming

schools, such as school closuresand stareplacement, to holdschools accountable for their per-formance. Long-term failure willno longer be an option.

ESTABLISH A FAST-TRACK

PARENT PROCESS FOR

CHARTER SCHOOL CONVERSIONIf a school receives an F grade,

he parents in that school districtcan immediately petition to turnhe school into a charter school.t would only require a fast-track

election and a simple majorityvote to change the status.

California

Florida

U.S.

EDUCATION

2

000

2

003

2

005

2

007

2

009

250

240

230

220

210

200

MATH

250

240

230

220

210

200

READING

1998

2002

2003

2005

2007

32

Florida, which pioneeredthe grading of schools,

has experienced significant

improvement in test scoresamong Hispanic students.

SOURCE: National Assessment of Educational Progress (4th grade scores)

California is ranked 48th in Reading and 45th in Math scores


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INVEST $1 BILLION IN THE UNIVERSITY OF CALIFORNIA

AND CALIFORNIA STATE UNIVERSITY SYSTEMS

The University of California and California State University systemsare two of our states greatest resources. UC is the best public university

system in the world, but it has been forced to endure signicant cutbacksin recent years due to the states budget crisis. UC student fees increasedby 40 percent last year, and the amount of per-student funding in the UCsystem has dropped from 78 percent of the total cost of education in 1990to 58 percent today. Meg will invest $1 billion of the savings from her wel-fare and other budgetary reforms into the UC and CSU systems.

UTILIZE ALTERNATIVE PATHS TO THE CLASSROOM

TO ATTRACT HIGH-QUALITY TEACHERS

California suers from a lack of math and science teachers who wereactually educated in those disciplines. To ll the gap, Meg will create andstrengthen alternative pathways to the classroom that allow professionals

with math and science backgrounds to receive expedited accreditation toteach in our public schools. n

EDUCATION

SIX OF THE TOP 15

1 UNIVERSITY OF CALIFORNIA, BERKELEY

2 UNIVERSITY OF CALIFORNIA, LOS ANGELES

2 UNIVERSITY OF VIRGINIA

4 UNIVERSITY OF MICHIGAN

5 UNIVERSITY OF NORTH CAROLINA

6 COLLEGE OF WILLIAM AND MARY

7 GEORGIA INSTITUTE OF TECHNOLOGY

7 UNIVERSITY OF CALIFORNIA, SAN DIEGO

9 UNIVERSITY OF ILLINOIS

9 UNIVERSITY OF WISCONSIN

11 UNIVERSITY OF CALIFORNIA, DAVIS

11 UNIVERSITY OF CALIFORNIA, SANTA BARBARA

11 UNIVERSITY OF WASHINGTON

14 UNIVERSITY OF CALIFORNIA, IRVINE

15 PENNSYLVANIA STATE UNIVERSITY

SCHO

OL

SCHO

OL

RANK

RANK

33

Doe Library at University of California, Berkeley


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Meg Whitmans focus

on jobs, spending

and education will put

California in the strongest

possible position to

deal with longer-term

challenges like rebuilding

our ailing infrastructure

and reforming our

complicated tax system.

In the interim, Meg has

staked out a clear agenda

to address the most

pressing concerns that

fall outside of her strategic

focus on the economy,

budget and schools.

Those additionalissues are:

SECURING

OUR BORDER

PROTECTING THE

ENVIRONMENT

FIGHTING CRIME


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We are going to modernize our environmental regulatory structure inCalifornia so we can unleash more green innovations. There are laws onthe books today, written in the name of environmental protection, thatare standing in the way of environmental progress. Meg Whitman


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SUPPORT CALIFORNIAS 33 PERCENTRENEWABLE PORTFOLIO STANDARD

Meg supports Californias landmark renewableenergy requirements. She believes that promotingclean sources of energy, such as solar, wind andbiomass, will help create green tech jobs in addi-tion to providing for a cleaner environment and lessdependence on fossil fuels.

ESTABLISH A CLEAN PATHWAY FOR NEWSOURCES OF RENEWABLE ENERGY

A key to bringing more clean power online inCalifornia is adequate transmission. Meg under-stands Californias energy infrastructure needs andwill work to provide a clean pathway for renewableprojects by removing the regulatory barriers thatare causing delays in the construction of new trans-mission lines.

INSTITUTE TOUGHER POLLUTER ENFORCEMENTMeg will impose tougher nancial penalties and

more rigorous enforcement of Californias environ-mental laws that are deemed to be eective by her90-day regulatory review and Sunset Commission.

PROMOTE CLEAN-AIRTRANSPORTATION POLICIES

Meg will lead a comprehensive campaign againstsmog-related illnesses, such as childhood asthma,by promoting sound transportation policies. Thesepolicies will reduce traic congestion, increase thefederal governments investment in new port in-frastructure, and provide loan guarantees and taxincentives for port electrication, including electrictrucks and new technologies for road and railtransportation. California is a major hub for goodsthat are exported to the United States. We are cur-rently shouldering the pollution burden related tothe ow of international trade through our ports. It

is time for the federal government to alleviate thesecosts and promote responsible environmental poli-cies in and around our port communities.

TREAD CAREFULLY ON COASTAL DRILLINGThere is no more dening feature in California

than the Pacic Coast. The coastline and our beach-es are a state and national treasure. They mustalways be protected. Meg opposes any new drillingoCalifornias coast until new technologies can be

completely proven to minimize the environmentalimpact of extracting oil and gas reserves. WhileMeg is open to a careful and thoughtful process thatexplores and evaluates the potential future use ofnew and safer drilling technologies, she opposesnew drilling until such technology is proven.

BRING CEQA INTO THE 21ST CENTURYIn order to ensure that California meets its

ambitious environmental and energy targets, whileallowing for renewed economic growth, Meg will

modernize the California Environmental QualityAct (CEQA). While protecting Californias environ-mental standards, Meg will work to update the lawto ensure that vital infrastructure and energy proj-ects are not stalled due to redundant reviews andoverly bureaucratic processes. This will help Cali-fornia secure its position as the clean tech leader inthe world and bring green projects online sooner.

TAKE A NEW LOOK AT NUCLEAR ENERGYAs we continue to diversify our electricity supply

while reducing greenhouse gas emissions, we should

not shut the door on nuclear energy. It is time tohave a smart and honest discussion about nuclearenergy and its contributions. As California grows,so will our need for a reliable supply of clean energy.This means that we need to look at a basket of en-ergy solutions. Nuclear energy, which does not emitCO

2, should be considered. n

When I travel the state and visit with leaders in the green tech industry, I see a vision where our

state, blessed with the most beautiful environmental treasures in the world, will lead America

forward in fostering the leap-ahead technologies that will break our dependence on foreign oiland make our economy stronger. Meg Whitman

Protecting the EnvironmentMeg Whitman will be a champion for sound policies that balance responsible

environmental protection and the development of clean sources of energy

with the need to support good-paying jobs in California.

ENVIRONMENT




SUPPORT CALIFORNIAS THREE

STRIKES AND YOURE OUT LAW

Meg will oppose any attemptto weaken Three Strikes. This

landmark anti-crime initiativehas been instrumental in keep-ing violent criminals out of ourcommunities. It needs to beenforced.

DEFEND CALIFORNIAS

DEATH PENALTY

Meg believes that the deathpenalty is warranted in limitedcases involving the most heinouscriminals. She will oppose anyattempt to weaken Californiasdeath penalty laws.

OPPOSE ANY NEW GUN

CONTROL LAWS

Meg supports the SecondAmendment rights of law-abiding citizens, but she believesthe right to bear arms can andshould be balanced with respon-sible gun control laws. At this

time, Meg believes that Califor-nia does not need additional guncontrol measures.

BUILD NEW PRISONS AND

OPPOSE EARLY RELEASE

Californias overcrowdedprison system is in dire needof expansion. While Meg doessupport sending inmates to otherstates that have unused prisoncapacity, this is not a long-term

solution. We need more prisonbeds to keep our streets safe.

OPPOSE THE LEGALIZATION

OF MARIJUANA

Meg is opposed to the legal-ization of marijuana. This is agateway drug whose use wouldexpand greatly among our chil-dren if it were to be legalized. n

State corrections

officials spent nearly

$22 million in

2008 on apartments

and motel rooms for

paroled sex offenders,

paying more than

$2,000a month

for some parolees.

Fighting Crime To KeepOur Communities SafeMeg Whitman believes in truth-in-sentencing laws andwill be an advocate for the rights of victims of crime.

PUBLIC SAFETY


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I am going to be a tough-on-crime governor.Our first priority has to be keeping our communities safe.

Were not going to let criminals go free early because some

politicians in Sacramento are unwilling to cut other areas

of the budget. I am drawing a line in the sand when itcomes to early release. Meg Whitman


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meg's plan for building a new california

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