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Dear Fellow
Dear Fellow Californian,
Californian,
T
hank you for taking a few At eBay, I grew a startup with 30
moments to learn more about employees and $4.7 million in revenue
my ideas for building A New to a Fortune 500 company with 15,000
California. I appreciate your employees and nearly $8 billion in revenue.
interest in my campaign and I am the only candidate who has created
hope my jobs plan will provide you with the conditions for tens of thousands of small
a better understanding of the type of businesses and individual entrepreneurs
governor I hope to be – one focused to grow a business and thrive. I think
on putting Californians back to work. Sacramento needs a little bit more of a
California faces one of the most business-like attitude. We have to be honest
challenging times in our state’s history. about our problems, offer grown-up solutions
Because of the unfriendly business and put an end to the partisan bickering and
environment, along with some of the hand-wringing that is business as usual.
highest tax rates in the nation, families I am running to reinvigorate California’s
and businesses are being forced to make economic potential. In the following pages,
unthinkable trade-offs, including leaving I have laid out my road map to create
the state they love. But I am optimistic two million new private-sector jobs by
Creating Jobs
Creating Jobs about California’s future. the beginning of 2015.
for
For I am running for governor because If you have ideas on how we can
I believe everything is still possible in move California forward, please contact
A New
A New California
California California. That is why as governor, our campaign. We will listen. We want this
creating jobs will be my top priority. campaign to be special, one that addresses
It is the only way we are going to your concerns and speaks to your hopes
clean up the mess in Sacramento. for what A New California can be.
I have the unique skill set and the Together, we can put California back
detailed plan to get California to work and make our state great again.
going again.
Sincerely,
Meg Whitman
4 Me g W hit m a n : C R EATING JOB S F OR A NE W C ALIFORNIA
Contents 2010
Meg Whitman visits CareFusion, a medical device company, in Palm Springs, April 2010.
California in Crisis Meg’s Jobs PLan Failure follows A New Kind of Leader
him everywhere
6 California in Crisis 10 Jobs Are On The Way 22 An Introduction 30 On the Horizon:
to Jerry Brown A New California
8 Crisis by the Numbers 13 Provide Job-Creating
- Unemployment Tax Cuts 27 Jerry Brown’s 32 About Meg Whitman
- Taxes 16 Streamline and Greatest Hits
25 Join Meg!
- Business Climate Reform Regulations 28 A Lifetime in Politics
- Debt & Future 18 Recruit New Industries 29 A Legacy of Failure
Forecast and Retain Existing
Employers
19 Solve California’s
Water Crisis
20 Meg’s Road Map
to 2 Million New
Private-Sector Jobs
by 2015
ON THE COVER: (Clockwise from top left) Meg Whitman on a tour of Cannon Safe, Inc. in San Bernardino; Meg Whitman visits the Port of Los Angeles;
Meg Whitman speaks to employees of Whittier Fertilizer in Pico Rivera; Farmers harvesting yellow bell peppers outside Gilroy; Meg Whitman on a tour
of Cannon Safe, Inc. in San Bernardino; Factory worker welding; Meg Whitman speaks at San Joaquin Equipment in Modesto; Meg Whitman tours
Graniterock in Redwood City; Meg Whitman tours CareFusion in Palm Springs; Meg Whitman tours Fowler Packing Company in Fresno; Solar panels
and wind turbines during sunrise; Meg Whitman speaks at Harlan Ranch in Clovis.
Meg Whitman is
determined to bring
a new approach to
Sacramento. One that
demands we create
jobs and lower taxes.
One that requires more
efficiency and better
services. And one
that makes a renewed
commitment to
improving our schools.
#
6 CREATING
Meg W h i tmJaOnB:SCFREATING
OR A NE JWO C
BAS LFI FOOR
R ANIA
NE W C ALIFORNIA
California in Crisis
CRISIS
2.2 million
Number of Californians who were
out of work in the first half of 2010.
More Californians are out of work
than the populations of 15 states.
10.1%
California has lost 10.1% of its
workforce in the past three years.
TAXES
8.25%
California has the highest state sales
tax in the nation compared to the
national median of 5.85%.
48th
The rank of California’s business
tax climate according to the
Tax Foundation.
8th highest
California has the 8th highest
corporate tax rate.
8
CRISIS
BUSINESS CLIMATE
Worst for business
CEO Magazine calls California
absolutely the worst state to
do business in.
39th
Forbes magazine ranks California
39th when it comes to state
business regulations.
46th
The U.S. Chamber of Commerce
finds California has the 46th worst
lawsuit climate in the nation.
DEBT &
FUTURE FORECAST
$20 billion
California has a $20 billion budget
deficit and has the highest rate for
insuring its debt.
143%
The amount the state spends
annually on servicing the debt has
increased by 143% in the past
decade and is forecast to increase
50% by 2015.
Double Digits
UCLA’s Anderson Forecast predicts
that unemployment will remain in
double digits until 2012.
# Meg W hit m a n ’ s P oli c y A g e nd a for A Ne w C ali forni a
Building A Meg Whitman has a
New California
plan to prime California’s
economic pump to start
creating jobs immediately.
Meg’s 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.
1
#0 Meg
Meg W hit
W hit m amna’n’s P oli
s P oli c yc y
A gAegnd
e nd
a a for
for A A
NeNe
ww C ali
C ali forni
forni a a
Meg’s Jobs Plan
Create Jobs
Promote Investments for
to Forbes
to government spending. We can’t
$
23 billion magazine,
California’s continue to use gimmicks to patch
billion debt burden is up the structural problems with
the 47th highest the General Fund while billions
in the nation. get added on top of the state’s
debt.
Source: Secretary of State Voter Guide
Fast Facts
600,000
The number of manufacturing jobs California
4 of 6
Of the nation’s metro areas with the
has lost since 2000, which equals 32 percent highest foreclosure rates are in California.
of the state’s industrial base.
48th
The rank of California’s business tax climate.
$500
On average, each California household is
Our key competitors Washington, Nevada paying about $500 this year to service the
and Utah rank in the top 10. state’s debt.
Historical
Debt
$2,000
$1,800
$1,600
$1,400
$1,200
Per Capita Bond
$1,000
$800
$600
$400
$200
$0
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
15
Meg’s Jobs Plan
Streamline
and As governor,
Meg will:
Establish Business
Development Teams
for Permitting
Reform Implement a
Strategic Time-Out on
Increasing jobs will be “Job
#1” of the entire Whitman
$ 13 166
The cost of government California’s workers’
500
The number of jobs that would be created if California’s
regulations for the
average resident in
regulatory environment were to improve from the 39th % compensation costs,
per $100 of payroll, are
worst in America to the 35th. Each additional five-point
California is more still 166 percent higher
THOUSAND than $13,000 a year. THOUSAND improvement would bring another 500,000 jobs.
than the national median.
16 Me g W hit m a n : C R EATING JOB S F OR A NE W C ALIFORNIA
Meg’s Jobs Plan
and fair to employers, but costs economy, while also protecting the 46th worst environment for
are beginning to increase again. our workers and their jobs. lawsuit abuse in the country.
Meg will take steps to ensure The Civil Justice Association of
that our workers’ compensation Improve California’s California, citing a recent study,
costs are kept in check and do Labor Laws and estimated the tort system in
not vastly exceed those of com- Workplace Flexibility California costs almost
peting states in the West, while California’s labor laws are $32 billion annually. Ironically,
also protecting our workers. antiquated and burdensome California is also the state
Give a Fresh
Look California: 46th Worst California: 49th least friendly
to AB 32 Lawsuit Climate in US 1 state for small business 2
Meg is com-
mitted to pro-
moting policies
that ensure Cali-
fornia remains
a leader in clean
technology. She
will preserve our
status as world
leader in alterna- Best Worst Best Worst
tive energy de-
velopment and the fight against to job providers. One glaring with the nation’s best medical
climate change. The next gov- example is the rigid rules that liability laws. Meg will extend
ernor must recognize, however, prohibit businesses from offering the state’s successful $250,000
that things have changed since family-friendly, flexible schedules cap on punitive damages in
AB 32 was enacted in 2006. The to their workers. While most medical liability lawsuits to
state’s unemployment rate has states don’t start counting over- other tort cases involving
nearly tripled since then, growing time until 40 hours have been product liability. She will also
from 4.6 percent to more than worked, employers in California reform anti-jobs litigation, such
12 percent today. Recent studies are required to pay higher wages as the onerous “Sue Your Boss”
have shown that AB 32 will have after more than eight hours have cases, the state’s version of ADA
an impact on California jobs and been worked in a single day. (Americans with Disabilities
that further economic analysis Meg would update California’s Act), which is so often used
is needed to measure the true workplace laws so that workers to extort attorneys’ fees, and
impact of the law’s implementa- could enjoy more flexibility in other similar laws pushed by
tion on our state’s economy. their schedules, such as working California’s labor unions and
To ensure California’s climate four, ten-hour days instead of trial lawyers. Meg will pursue
change law does not become an five, eight-hour days. This will class action reform to set limits
obstacle to job creation, Meg has reduce traffic congestion and free on plaintiff lawyers’ contingency
called for a one-year moratorium up parents to spend more time fees and end a system that only
on specific AB 32 regulations. with their children. It will also benefits the lawyers who file
This additional time will allow allow employers to better manage the lawsuits. Meg also wants
for careful examination of the their workforce to respond to the to end the use of “greenmail”
true costs and benefits of each demands of their customers. – frivolous lawsuits filed by nar-
proposed rule. Meg’s goal is a row interest groups to exploit
smart, thoughtful and balanced End Lawsuit Abuse environmental laws to benefit
approach that keeps California According to the U.S. Cham- their own agenda, not what the
at the forefront of the green ber of Commerce, California has laws intended.
72
$
million
Amount that the city of Los Angeles
spent on litigation-related expenses
in 2008, enough money to pay for the
salaries of 1,271 police officers. 15
There are now more
Californians out of work
than the respective
populations of 15 states. 70
Average number of
hours drivers in Los
Angeles spend stuck
in traffic per year.
Source: 1. United States Chamber of Commerce 2. Small Business and Entrepreneurship Council 2009 Business Survival Index 17
Meg’s Jobs Plan
and business
ficer and will also empower a in math, science, economics
– Meg Whitman
2/3
18
Two-thirds of studio movies are
now made outside of California.
Me g W hit m a n : C R EATING JOB S F OR A NE W C ALIFORNIA
Meg’s Jobs Plan
Solve California’s
Water Crisis system. As a solution to
protecting the Delta’s criti-
cal environments, a new
Turning our back on the state’s conveyance system would help
ongoing water crisis is turning relieve pressure on the Delta
our back on jobs. As a major while safeguarding California’s
global supplier and the most water supply.
agriculturally productive state
95,000
in the nation, California’s agri- Strengthen our
cultural industry is not one we Conservation Efforts
can afford to lose because of lack Meg will call on all
of political foresight. In order to Californians, urban and Economists from the
University of California,
remain a leader in agriculture, rural, residents and indus- Davis forecasted the
we must face the significant try, to conserve one of our existing drought and
water supply issues that are most important resources. water restrictions
currently plaguing our state and She will be a champion could cost our already
for incentives that en- battered state economy
costing us thousands of jobs. up to $2.8 billion and
Meg is committed to addressing courage businesses and 95,000 jobs.
California’s water problems and homeowners to conserve
supports new water storage and water. Meg believes that
delivery projects. new technologies and con-
servation strategies are vital to
becoming sustainable and that it
As governor, Meg will: is important that we continue to
view conservation as part of the
Support the “Two Gates” overall solution.
Project
Meg supports building an Promote the Use
intermediate solution to increas- of Technology
ing our state’s water supply. Meg believes that technolo-
The “Two Gates” project pres- gies such as desalination and
ents a viable solution that water recycling must not be
would protect the Delta smelt overlooked as promising solu-
while increasing water flow. tions to our water crisis. As
governor, she will work to reduce
Support the Construction the regulatory barriers that
of Above and Below-Ground are preventing California from
Water Storage attracting companies that will
Meg believes that California help build the technology we
needs to make investments in need to sustain a reliable
infrastructure to ensure that we water supply.
have adequate reserves of water
to address future droughts and
shortages.
19
Meg’s Jobs Plan
Retail
Leisure &
375,000
Hospitality
192,000
Information
Education 65,000
42,000
“My team and I
have dissected the Financial Services
Health Care
California economy, 181,000 Business Services 91,000
identified the growth 250,000
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
*IMPORTANT
NOTE ON ESTIMATES: The Road Map outlines estimates in growth in employment by industry as an outcome of a full implementation of Meg’s job plan. This
is 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 expert
or 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 administration’s top priority.
Regulatory Reform
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
Agriculture
Construction
Manufacturing
Retail
Information
Financial
Services
Business
Services
Health Care
Education
Leisure &
Hospitality
All Other*
Meg’s jobs plan is designed to return our state to full employment. This is an
ambitious goal, 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 Meg’s jobs goal in perspective, there are approximately 1.3 million
small businesses in California. If each one of them created just one new job,
Meg would be two-thirds of the way to her goal.
Unlike others in politics who simply make promises, Meg Whitman has
a detailed strategy to create good new jobs. Meg and her team have analyzed
California’s economy and have created a sector-by-sector strategy for job creation.
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Agriculture Construction Manufac- Retail Information Financial Business Health Care Education Leisure & All Other*
turing Services Services Hospitality
Construction
Manufacturing
Retail
Information
Financial
Services
Business
Services
Health Care
Education
Leisure &
Hospitality
All Other*
“Politics started
the day I
was born.”
– Jerry Brown
Brown is born Father Pat Brown California Supreme Court Founded California Peace Elected to Los Angeles California 34th Governor
in San Francisco served as 32nd Law Clerk Slate and Treasurer for Junior College Board Secretary of State of California
Governor of California Eugene McCarthy campaign
22
jerry A Lifetime in Politics
brown A Legacy of Failure
Jerry Brown was born into a political dynasty and has spent a lifetime in the
family business running for office.
As Governor, Mayor of Oakland and now Attorney General, Brown has waged a
war on jobs, driven by his liberal philosophy of more regulations, more taxes
and more spending. After his 8 years as governor, he left the state with record
unemployment and 1.3 million Californians out of work. His record is one of a job
killer who for 40 years has failed to keep his promises.
Voters deserve better than Brown’s non-answers to serious questions about how
he would fix our state’s pressing economic problems.
Failed run for Second failed run Failed run for California Democratic Second failed Third failed run Mayor of Oakland California
U.S. Presidency for U.S. Presidency U.S. Senate Party Chair run for U.S. Senate for U.S. Presidency Attorney General
23
Jerry Brown: A Legacy of failure
Jerry Brown:
He granted vast new powers for public employees to
unionize. That move has led to the lavish state worker
retirement system that today has left California taxpayers
HAD NO PLAN FOR CREATING on the hook for at least a $100 billion unfunded liability.
PRIVATE-SECTOR JOBS
Pursued Anti-Business agenda
Jerry Brown served as governor from 1975 until 1983,
When Jerry Brown became governor in 1975, he brought in
an era marked in large part by economic uncertainty and
environmental, consumer-protection and social activists.
rudderless political leadership. Brown told a national
Within months, the Brown appointees were issuing new
television audience in 1995, campaign promises are “a
regulations widely decried by business and professional
lie. ... You run for office and the assumption is, oh, I know
interests as job killers. Dun & Bradstreet ranked
what to do. You don’t. I didn’t have a plan for California.” In
his second term, the number of unemployed Californians
increased by more than 600,000. Under Brown, the jobless rate nearly
JOBLESS RATE NEARLY DOUBLED
DOUBLED from 6.5% to 11.1%
In Brown’s second term, the jobless rate soared from 11.1%
6.5 percent to 11.1 percent, a record high. But he did
grow state government jobs – by 20,000 over his eight-
6.5%
year term.
24
Jerry Brown: A Legacy of failure
construction, a public utilities commission that limits new Brown Called “Worst Administrator
business to piddling allotments of natural gas, and a tax Ever To Come Down The Pike”
and environmental-control system that has discouraged As governor, Brown showed virtually no skill or desire to
Dow Chemical, Alcan Aluminum, Anchor Hocking Corp. and work with the legislature, prominent Democrats and even
many other companies from building facilities here. his own staff. Democratic Assemblyman Louis Papan simply
called him “the worst administrator ever to come down the
TURNED AWAY MAJOR EMPLOYERS
pike.” Democratic Assembly Leader Leo McCarthy bluntly
Dow Chemical gave up on a plant that would have
said Brown “isn’t willing to work at the job of being a unifying
used clean technology and created 1,000 jobs. In
leader.”
two and half years, the company spent nearly $5 million and
only obtained four of 65 necessary permits. By almost everyone’s account, Brown was a notoriously
poor manager, often unfocused and almost always without
a plan. Brown simply called it “creative inaction,” and once
During his time as Governor, said, “Sometimes it’s better to do nothing.” The result was
Jerry Brown turned a a nearly dysfunctional governor’s office. Sadly, Californians
paid the price.
into a While Brown happily named a state astronaut and
$6
$1 the publisher of the Whole Earth Catalog as a special
billion consultant, two years into his administration nearly one of
billion
surplus five board and commission appointments remained vacant.
deficit He also was widely faulted for letting highways decay and
ignoring public education. “He let state legislators or his
own appointees deal with those, and he wasn’t around
even to correct their more grievous errors,” The Sacramento
Jerry Brown met with the top executives of Honda. Why Bee concluded. During one stint in 1979, busy running
should Honda consider California for its first American plant? for president, Brown spent 79 out of 100 days outside of
“Hippies”, Brown replied. “Blue jeans. All important trends California.
start in California.” Honda went elsewhere.
LED CALIFORNIA TO DEFICIT SPENDING,
CAMPAIGNED AGAINST PROP. 13, CALLING IT BUSINESS UNCERTAINTY
“A RIPOFF” When Brown left office in January 1983, more than
While Brown dawdled, California taxpayers in the 1970s 1.3 million Californians were out of work, nearly double
were being pushed into higher income tax brackets because the number four years earlier at the start of his second
of inflationary pressures. Escalating property taxes, with term. He’d turned a $6 billion surplus into a $1 billion
no caps, were threatening to drive people from their deficit. The Sacramento Bee reported that California was
homes. Brown did nothing to fix the inequities. Angered, “flat broke and on the brink of bankruptcy.” California’s
voters overwhelmingly passed Proposition 13 in 1978. government was on the verge of issuing IOUs for the first
While Brown had tried to urge its defeat, calling it a “ripoff” time since the Great Depression and unemployment was
and “consumer fraud,” the voters simply ignored him. a record-high 11.1 percent, only surpassed during this
current recession.
COST JOBS BY FAILING TO ACT IN CRISES
Brown was roundly criticized for not taking practical steps In a 1995 speech, Brown said, “Remember, in 1982, we
to address the state’s debilitating drought between 1975 had the first deficit left in California. I had seven balanced
and 1977. He failed to act when a pest, known as the budgets. Usually they had balanced budgets before that.
Mediterranean fruit fly, severely threatened the state’s I left an unbalanced budget in 1982 and guess what,
agriculture industry. Brown cost California agriculture they’ve had a debt ever since.”
$100 million.
25
Jerry Brown: A Legacy of failure
26
Jerry Brown: A Legacy of failure
27
Jerry Brown: A Legacy of failure
A Lifetime in Politics
1938 Brown is born in San Francisco
A Legacy of Failure
did you know?
Governor Brown grew state government
120%
Governor Brown left the
state with record high
11.1% unemployment
Governor Brown raised or endorsed
$7 Billion
in new taxes
$500 million
Mayor Brown left Oakland with a
$13 million
deficit and high debt burden
Meg Whitman is running for governor to help write the next chapter in our state’s
great history. She does not accept the fate the doomsayers want to lay at our
doorstep. Meg understands the magnitude of the changes that are required to
rebuild California. None of this will be easy, but nothing important and worth doing
ever is.
The special interests who are vested in the failed status quo in Sacramento are
not going to like Meg’s policy agenda. They are going to campaign hard against her
reform ideas, but Meg isn’t running to make them happy. She is in this race to fix a
state teetering on the edge of financial collapse. She is in this race to grow jobs and
raise the standard of living in our state. She is in this race to fix our failing schools
and to foster the next technological revolution in the fields of alternative energy,
biotech and advanced manufacturing. This is an important campaign for California’s
future. It’s a campaign grounded in principle and big ideas. Let the debate begin.
31
MEG WHITMAN
34
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MegWhitman.com
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Cupertino, CA 95014
www . M e g W h i tman . c o M
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