7 Steps. 700,000 Jobs. 7 Years.

We

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

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 states

3.5% lower per capita personal income FL v. U.S. i

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More people are now leaving Florida than are moving here from other states

People vote with their feet, and they are voting against Florida Job growth in Florida is stronger when Florida’s state government costs less

Job Growth in Florida depends on making government affordable again

Jan-00

Jan-10

Aug-09

Mar-09

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Bureau of Labor Statistics, www.bls.gov

Jun-00

2000 – 2010 Millions

Florida Jobs 9.0

8.8

8.6

8.4

8.2

7.8

7.6

7.4

7.2

7.0

6.8

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

The

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career politicians in Tallahassee are spending our state into bankruptcy. i

Spent stimulus dollars from Washington, D.C. and drained $8 billion in rainy day and tobacco fund reserves instead of fixing their budget problem

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

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

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

State “Rainy Day Fund” Fiscal Years 1999 through 2009

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

(In Millions of Dollars) $7,000

8.5 % 8.0 %

$6,000

7.5 % $5,000

7.0 %

$4,000

6.5 % 6.0 %

$3,000

5.5 % $2,000

5.0 %

$1,000

4.5 %

6% Target

7% Cap

2009

2008

2007

2006

2005

2004

2003

2005 2006 2007 2008 2009 $4,569.8 $6,081.2 $4,682.1 $1,674.6 $912.7 18.3% 22.5% 17.7% 6.9% 4.3%

2002

2004 $ 3,423.6 15.7%

2001

2002 2003 $1,925.1 $1,641.3 10.0% 8.2%

2000

1999 2000 2001 $1,694.3 $2,155.9 $1,382.7 9.5% 11.5% 7.2%

1999

4.0 %

0$ General Fund Reserves Reserves as % of Revenues

Historical Ratio

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

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.

Florida

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

In surveys that rank state regulatory framework (as separate from overall business climate where Florida’s low tax burden increases our state’s competitiveness) Florida does not score well

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

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

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

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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 a major hurricane or a number of costly hurricanes

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.

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

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 longterm, good-paying jobs. My 7-point 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.”

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

“Let’s get to work.”

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Accountability Budgeting

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 transparent, outcome-based budgets Use

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

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

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

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

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

www.RickScottForFlorida.com

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

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

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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 Reform. Aligning state employee pension contributions with other states‘ could save almost $1.4 billion. Per Prisoner Savings. Paying competitive market-based salaries for corrections’ staff, utilizing inmate labor to grow prison food, and competitively bidding health care contracts resulting in public prison costs that are as low as private prisons, prisoner costs would be reduced by $1 billion.

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

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

Florida Prospers When Government Spending Is Low Florida’s economic growth is higher when our government spending is lower. 6.0 %

Operational Efficiencies. Using common sense business solutions can reduce the cost of government through operational efficiency saving upwards of $500 million1. A 5% reduction in the state workforce will save almost $300 million.

59.0 % 4.0 % 29.0 %

2.0 % 0.0 %

-1.0 %

-2.0 %

-31.0 %

-4.0 %

-8.0 %

-61.0 % The size of Florida’s government burden relative to U.S. average (LHS) Florida’s private GDP growth relative to U.S. average (RHS)

Veto Pork Barrel Spending. Veto what the legislators call “turkeys”- costly and unnecessary pork barrel projects.

-91.0 %

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

-6.0 %

Reforming Medicaid. Reforming 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.

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

A 5% reduction in the state workforce will save almost $300 million. 1. Florida Tax Watch

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Regulatory Reform i i i

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 Make unemployment benefits more affordable  Limit frivolous lawsuits by implementing tort reform  Impose a regulatory freeze and implement a comprehensive review of existing and proposed regulations  Review state development regulations and expedite permits for job-creating businesses, such as Enterprise Florida targeted industries  Reform PSC processes to allow reasonable energy production and expansion  Lower workers’ compensation costs; a 35% reduction in workers’ compensation costs would save businesses approximately $2.46 billion  Bring our health insurance costs and mandates in line with the U.S. average  Address Florida’s relatively expensive electricity costs so businesses could save approximately $3.25 billion

www.RickScottForFlorida.com

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

“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.”

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Focus on Job Growth and Retention i

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 assist their local businesses obtain state and federal grants, and to comply with state and local regulatory processes in the least costly manner

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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

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 ake economic development programs more flexible to allow our existing M 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

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Partner with universities. 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 always include partnerships with universities to develop research strengths into unique clusters

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World Class Universities

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Invest in university research, laboratories, business incubators, and technology transfer

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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

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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

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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 ROI

www.RickScottForFlorida.com

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

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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 $1 is shifted away from our schools. A 1 mill reduction results in approximately a i $142 savings for the average homeowner Phase in another 1 mill reduction over the i next 7 years

Growth in Property Tax Revenues versus Growth in Personal Income 1993-94 through 2008-09

1.40 1.20 1.00 0.80 0.60 0.40 0.20

Personal Income Total Property Tax Revenues

2008-09

2007-08

2006-07

2005-06

2004-05

2003-04

2002-03

2001-02

2000-01

1999-00

1998-99

1997-98

1996-97

1995-96

0.00 1994-95

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

1993-94

“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.”

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Eliminate Florida’s Corporate Income Tax Over Seven Years i

Fully phasing out the corporate income tax over time will have a large positive benefit for Florida’s economy while having a minimal impact on state revenues

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

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

Corporate Income Tax Rates in the U.S. and Other Higher Taxed Countries (State and Federal Combined)

45.0 %

The Tax Foundation

10.0 %

40.0 %

39.2%

38.6% 35.0%

35.0 % 30.0 % 25.0 % 20.0 %

5.0 %

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

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

The Economic Impacts Of The Rick Scott Plan Through this 7-Step Economic Program, 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 program - 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

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$74 billion in state GDP

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$41 billion in higher personal incomes

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

“Let’s get to work.” w w w. R i c k S c o t t F o r F l o r i d a . c o m

Political advertisement paid for and approved by Rick Scott, Republican, for Governor 300 S.E. 2nd Street Ft. Lauderdale, FL 33301

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