rick scott - economic plan 7-7-7

7 StepS. 700,000 JobS. 7 YearS.

Wei Florida has lost a larger percentage of our jobs than the rest of the country since the 2007 peak

-10.5% FL v. -5.3% U.S.

i Florida’s unemployment rate went from below the national average to the 5th worst rate in the country 11.7% FL v. 9.5% U.S.

i Florida’s economic decline is larger than the national average Total Personal Income in Florida is still down 3.1% from the level reached prior

to the recession; for the nation, Total Personal Income is down 1.4%

i Floridians earn less than people in other states3.5% lower per capita personal income FL v. U.S.

i More people are now leaving Florida than are moving here from other states People vote with their feet, and they are voting against Florida

i Job growth in Florida is stronger when Florida’s state government costs less Job Growth in Florida depends on making government affordable again

2 www.RickScottForFlorida.com

cannot blame Washington, D.C. for all of our economic problems – Tallahassee is part of the problem.

Once a leader in job creation, now Florida is falling behind.

Florida Jobs2000 – 2010

Bureau of Labor Statistics, www.bls.gov

Jan-

00

Jun-

00

Nov-

00

Apr-0

1

Sep-

01

Feb-

02

Jul-0

2

Dec-

02

May

-03

Oct-0

3

Mar

-04

Aug-

04

Jan-

05

Jun-

05

Nov-

05

Apr-0

6

Sep-

06

Feb-

07

Jul-0

7

Dec-

07

May

-08

Oct-0

8

Mar

-09

Aug-

09

Jan-

10

9.0

8.8

8.6

8.4

8.2

7.8

7.6

7.4

7.2

7.0

6.8M

illion

s

Thei Spent stimulus dollars from Washington, D.C. and drained $8 billion in rainy day and tobacco

fund reserves instead of fixing their budget problem

i Used gimmicks to comply with requirements that ongoing expenses be funded with recurring revenue sources.

i Pushed off tough budget decisions that will force a large tax on jobs in the future if not addressed

i Blew through the legally imposed debt ceiling like Washington, D.C. does on a regular basis

career politicians in Tallahassee are spending our state into bankruptcy.


The result is a $6 billion budget deficit and a negative outlook on Florida’s debt. Florida is now going down the path of California and Greece.

State “Rainy Day Fund” Fiscal Years 1999 through 2009

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 General Fund Reserves $1,694.3 $2,155.9 $1,382.7 $1,925.1 $1,641.3 $ 3,423.6 $4,569.8 $6,081.2 $4,682.1 $1,674.6 $912.7 Reserves as % of Revenues 9.5% 11.5% 7.2% 10.0% 8.2% 15.7% 18.3% 22.5% 17.7% 6.9% 4.3%

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

0$

(In Millions of Dollars)

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

6% Target 7% Cap Historical Ratio

8.5 %

8.0 %

7.5 %

7.0 %

6.5 %

6.0 %

5.5 %

5.0 %

4.5 %

4.0 %

Change in Debt Service as a Percentage of Revenue 1999-2009

State of Florida 2009 Debt Affordability Report, prepared by Division of Bond Finance, December 2009

Floridai Pacific Research Institute ranks Florida’s regulatory framework as 45th worst

i US Chamber of Commerce state liability system survey ranks Florida 42nd worst

i Small Business Survival Committee ranks Florida the 38th highest with respect to health insurance mandates and 37th highest with respect to electric utility costs

i Government run wind insurance has driven private insurers out of the market and will result in an enormous tax increase or auto insurance rate increases if we get hit with costly hurricanes

burdens job creation with one of the worst regulatory frameworks in the nation.


Florida’s economy should be the envy of the nation …that requires sending a conservative outsider who has actually created jobs to change the way business is done.

“ The career politicians in Tallahassee have done little to jumpstart our economy. But then again, how can you get our economic wheels in motion when you’ve never balanced a budget, been forced to meet payroll, or created a job?”

Let’s face it, if the career politicians knew how to get us out of this recession, they would have done it already.

That’s why it’s time for a conservative outsider with real-world business experience to take charge of Florida’s economy.

I am the only candidate in this race with a comprehensive plan that will get our fiscal house in order, balance the budget, and create long-term, good-paying jobs.

My 7-step plan isn’t complex. In fact, it’s very simple. And it’s common sense.

I’ve created jobs in the private sector. As governor, my 7-step plan will create 700,000 in 7 years.”

“Make Florida the job creation model for the nation.”

“Let’s get to work.”

“ As governor, I’ll require accountability budgeting to force the bureaucrats in Tallahassee to justify every tax dollar they spend.”1Accountability Budgeting

i Use transparent, outcome-based budgets

i Propose biennial budgets in order to adequately review budget goals and give the public time to participate in the budget process

i Impose spending limits to ensure government expenditures are at an affordable level

i Unlike other spending limits, my plan changes the focus from how much government can spend to how much the economy can grow

i Return Florida’s state and local government expenditure burden to at least the 2004 level before spending ballooned out of control

i Refuse temporary funding from the federal government that creates permanent spending in Florida


“ I will use my line item veto or veto entire budgets that spend more than taxpayers can afford.”

“ I will make the hard budget choices to bring spending in line with revenues.”2


Reduce Government Spending Balance the budget – without gimmicks, one-time revenues, borrowed funds, temporary funds, or tax increases

Implement outcome-based budgeting that will create budgeting efficiency throughout government, including:

Pension ReformAligning state employee pension contributions with other states’ could save almost $1.4 billion

Per Prisoner SavingsPaying competitive market-based salaries for corrections’ staff, utilizing inmate labor to grow prison food, and competitively bidding health care contracts, prisoner costs would be reduced by $1 billion

Welfare BenefitsImposing more stringent standards on non-compliance with work requirements and require drug screening for recipients, Florida could save $77 million

Operational EfficienciesUsing common sense business solutions can reduce the cost of government through operational efficiency saving upwards of $500 million.1 A 5% reduction in the state workforce will save almost $300 million

Reforming MedicaidReforming health care for Medicaid recipients (through a waiver), and state employees to consumer directed care will lower the cost of health care, increase choice of health plans, and save taxpayers $1.8 billion

Veto Pork Barrel SpendingVeto what the legislators call “turkeys”– costly and unnecessary pork barrel projects

A 5% reduction in the state workforce will save almost $300 million.

6.0 %

4.0 %

2.0 %

0.0 %

-2.0 %

-4.0 %

-6.0 %

-8.0 %

1981

1982

1983

19

8419

85

1986

1987

19

8819

89

1990

1991

1992

1993

19

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

08

59.0 %

29.0 %

-1.0 %

-31.0 %

-61.0 %

-91.0 %

The size of Florida’s government burden relative to U.S. average (LHS)Florida’s private GDP growth relative to U.S. average (RHS)

Florida Prospers When Government Spending Is LowFlorida’s economic growth is higher when

our government spending is lower.

U.S. Bureau of Economic Analysis and U.S. Census

1. Florida Tax Watch

3“ Reducing unnecessary costs that Tallahassee places on Florida businesses will result in creating 240,000 jobs.”


Regulatory Reform i Make unemployment benefits more affordable

i Limit frivolous lawsuits by implementing tort reform

i Impose a regulatory freeze and implement a comprehensive review of existing and proposed regulations

i Review state development regulations and expedite permits for job-creating businesses, such as Enterprise Florida targeted industries

i Reform Public Service Commission (PSC) processes to allow reasonable energy production and expansion

i Lower workers’ compensation costs; a 35% reduction in workers’ compensation costs would save businesses approximately $2.46 billion

i Bring our health insurance costs and mandates in line with the U.S. average

i Address Florida’s relatively expensive electricity costs so businesses could save approximately $3.25 billion

“In order to open Florida for business, we must first

ensure that incentives and policies are in

place to reward success – rather than punishing it. As governor, I will be

Florida’s chief economic development officer. We

won’t miss any opportunity to keep or add jobs.”

4Focus on Job Growth and Retentioni Local economic development offices are central to job creation and

retention in our state. I will ensure these offices have the right resources and trained specialists so they can help their local businesses obtain state and federal grants, and comply with state and local regulatory processes in the least costly manner

i In Tallahassee, we will eliminate overlapping economic development agencies and have one group that will assist local economic development agencies and serve as our statewide recruitment agency. As governor, I will be the state’s chief economic development officer, working with existing as well as potential businesses every day to create jobs

i Make economic development programs more flexible to allow our existing businesses to expand here in their own unique ways. I will invest in the state Innovation Fund that brought Scripps and Burnham research labs to Florida, developing high tech clusters with high-paying jobs

i Nurture new cutting-edge technology clusters – such as the biotechnology cluster in Orlando that, by conservative figures, creates over $7 in economic returns from every $1 invested – a 7:1 return on investment (ROI)

Leveraging the economic development assets of Florida to attract key technology clusters will create 60,000 jobs.

“ A world class university system will provide our state the highly educated workforce necessary to enhance the state’s vibrant technology sectors.”


5World Class Universitiesi Invest in university research, laboratories, business

incubators, and technology transfer

i Maximize the impact from university research on the economy by ensuring that each Florida university – and the research conducted by our universities – are connected to the state’s economic development process

i Leverage the research strengths of our state’s universities – such as recent investments made in medical colleges – to invest in new and emerging technologies that positively impact our economy

i Florida has many unique clusters revolving around university specific research, such as the biotechnology cluster associated with the University of Florida. State economic development grants will include partnerships with universities to develop research strengths into unique clusters

“ The property tax burden is Florida’s #1 tax problem. As governor, I will tackle this problem head on – not impose ‘band-aid’ solutions that provides temporary relief to one group of people.”

6Growth in Property Tax Revenues versus Growth

in Personal Income1993-94 through 2008-09

1.40

1.20

1.00

0.80

0.60

0.40

0.20

0.00

U.S. Bureau of Economic Analysis and Florida Department of Revenue

1993

-94

1994

-95

1995

-96

1996

-97

1997

-98

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

Personal Income Total Property Tax Revenues

Reduce Property Taxes Reduce the statewide property tax (RLE) by $1.4 billion (from 5.29 mills to 4.29 mills, a 19% reduction in RLE). Savings from other key components of my 7-step plan will be used to replace those funds so not one dollar is shifted away from our schools.

i A 1 mill reduction results in approximately a $142 savings for the average homeowner

i Phase in another 1 mill reduction over the next 7 years


“ Eliminating the business income tax will have a minimal effect on state revenue while making Florida globally competitive.”

Eliminate Tax On Florida Businessesi Fully phasing out the business income tax over time will have

a large positive benefit for Florida’s economy while having a minimal impact on state revenues

i Total state tax revenues will benefit from the dynamic economic growth created from the business income tax phase-out

i In total, my tax and budget reforms will create an additional 365,000 jobs.

7Business Income

Tax Rates in the U.S. and Other Higher

Taxed Countries (State and Federal Combined)

45.0 %

40.0 %

35.0 %

30.0 %

25.0 %

20.0 %

10.0 %

5.0 %

0.0 %

The Tax Foundation

OECD

Ave

rage

Cana

da

Belgi

um

Franc

e

FL @

refor

mWY

WATXSDNVDE SCMA MSCA FLME VARIMN

U.S.

Avera

geNJPA

Japa

nAKIA

39.2% 38.6%

35.0%

“ When fully implemented, my plan will save Florida taxpayers $7 billion a year.”

The Economic Impacts Of The Rick Scott PlanThrough this 7-step economic plan, total job growth in Florida will accelerate, the number of new business start-ups will increase, wages and salaries will grow, and the productivity and vitality of Florida’s economy will soar.

The 7-step economic plan – over a 7-year period – will have a positive economic impact and create 700,000 jobs for the State of Florida.

In total, Florida’s economy will gain an additional:

i 700,000 jobs

i $74 billion in state GDP

i $1 billion in higher personal income

i $1 billion in total state tax revenues as a direct result of the increased economic growth

Political advertisementpaid for and approved by Rick Scott, Republican, for Governor300 S.E. 2nd StreetFt. Lauderdale, FL 33301

www.RickScottForFlor ida.com

“Let’s get to work.”

PRSRT STANDARDU.S. Postage

PAIDPermit No. 1164Zip Code: 32256

rick scott - economic plan 7-7-7

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