Office%20of%20the%20State%20Treasurer

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Office of the State Treasurer

• Bruce L. Poliquin
• State Treasurer

IMPORTANCE OF FISCAL PRUDENCE
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er/outreach
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DC FISCAL NIGHTMARE

• Spend More Than Take In
• 1 TRILLION Budget Deficits
• 15 TRILLION Federal Debt
• Credit Downgrade

Sources Congressional Budget Office Standard
Poors
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MAINE BUSINESS CLIMATE

• 50th Rank Worst in U.S.
• Stifling Regulations
• 56 New Private Sector Jobs 1999-2009
• Med Household Inc 19k/year Less vs NH

Kids Leave for Jobs Elsewhere
Sources 2010 Forbes Magazine Maine Dept. of
Labor U.S. Census Bureau.
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HOW TO CREATE MORE PRIVATE SECTOR JOBS

• 1. Spend Less
• 2. Tax Less
• 3. Regulate Less
• 4. Lower Energy Costs
• 5. Lower Health Insurance Premiums
• 6. Reform Education

Build Business-Friendly Climate
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STEP 1. HIGH GOVT SPENDING HIGH TAXES
17th Highest State Spending Per Capita
7th Highest Tax Burden
6,000
13
12.6
Pers. Inc.
5,628
12
5,500
11.0
11
5,000
4,926
10
4,500
9
4,000
8
ME
U.S.
U.S.
ME
Sources Kaiser Foundation U.S. Bureau of
Economic Analysis.
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1. ELIMINATE 3 BILLION OF DEBT

• Pensions for Teachers State Emp.
• Health Insurance for Teachers State Emp.
• Hospital Debt

200 Million/Year Less Spending
Source Maine Public Employees Retirement System.
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STEP 2. TAX LESS

• 150 Million Tax Cut
• 460,000 Mainers Keep More Money
• 70,000 Pay 0 State Income Tax
• Business Tax Cut for Equip Invest
• No Fuel Tax for Commercial Fishing
• Death Tax Exemption 1 2 Million

Less Expensive Live Do Business
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STEP 3. REGULATE LESS

• Ask Job Creators
• Common Sense Changes
• Lobster Traps on Dock
• Gift Cards
• Maine Revenue Service Appeals
• Gift-a-Fish

Easier Do Business in Maine
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STEP 4. HIGH ENERGY COSTS FEWER JOBS
43 Higher Electricity Cost
18th Highest Gas Tax
32 gal
17 kwh
15.9
31
16
31
30
14
29
28
12
28
11.1
27
10
26
8
25
ME
U.S.
ME
U.S.
Sources U.S. Energy Information Administration
The Tax Foundation.
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STEP 4. REDUCE ENERGY COSTS

• All Sources Explored
• Natural Gas Pipelines
• Keep Hydroelectric Dams
• Cheap, Plentiful, Green Canadian Power
• Eliminate Taxes on Monthly Electric Bills

Lower Energy Costs More Jobs
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STEP 5. HIGH HEALTH INSURANCE PREMIUMS FEWER
JOBS
Anthem Monthly Premium (40-yr-old w 5,000
Deductible)
500

• New Maine Law
• Close Dirigo Health
• Buy Insurance Across State Lines
• High Risk Pool
• Cheaper Premiums for Healthy

440
400
300
216
200
100
0
NH
ME
Sources Anthem Blue Cross Blue Shield U.S.
Government Accountability Office.
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STEP 6. HIGH EDUCATION COSTS POOR RESULTS
FEWER JOBS
12th Highest Cost Per K-12 Student
12,000
11,664
11,000
54 of CC Freshman
Need Remedial Courses
10,000
9,683
9,000
8,000
ME
U.S.
Sources U.S. Government Accountability Office
Maine Community College System.
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STEP 6. EDUCATION REFORMS

• Charter Schools
• Flexible Curriculums
• Student Performance Benchmarks
• Merit Pay for Teachers
• Flexible Licensing for Teachers
• Seamless HS/Trade School/CC

Better Prepared Workforce More Jobs
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CULTURE OF DEPENDENCY
2nd Highest Households Receiving Food Stamps
3rd Highest Population Enrolled in Medicaid
30
15
13.8
27
13
25
11
20
19
8.8
9
7
15
ME
U.S.
ME
U.S.
Sources U.S. Census Bureau Kaiser Foundation
Maine DHHS.
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WELFARE REFORMS

• 5-Year Lifetime Limit
• Waiting Period
• Drug Testing
• Termination of Benefits
• Fraud Task Force

More Personal Responsibility and Independence
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WHATS NEXT

• Zero Based Budgeting
• Eliminate Tax on Pensions
• More Regulatory Reforms
• More Welfare Reforms
• Right-to-Work Legislation

Spend Less, Tax Less, Regulate Less More Jobs
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IMAGINE A MAINE

• Fiscal House In Order
• Spend Less, Tax Less, Regulate Less, Borrow Less
• Attract Business Investment JOBS
• Protect Natural Environment
• Great Place to Live and Work

Keep our Kids Here!
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