1

Best Practices
2011



Republican Governors Public Policy Committee
Best Practices Report
November 30, 2011
www.rgppc.org


Questions or edits to this report may be directed to MSanderson@rgppc.org;
SLevey@rgppc.org, or LRussell@rgppc.org.





The Republican Governors Public Policy Committee (RGPPC) is the official policy
organization of the nations Republican governors. The RGPPC brings together 32 state
governors to speak with one voice on public policy issues that impact their states.
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This report is a collection of policy ideas from the Republican Governors Public Policy
Committee. Inclusion in this report does not constitute an endorsement of the policy
prescription by any specific governor. Instead, these policy proposals should be viewed
as among the best ideas from the states to be considered in policy preparations.











1
In this report, the term states generally refers to the governments of the states, the territories and the District
of Columbia.

2
Introduction:

The Republican Governors Public Policy Committee (RGPPC) is committed to developing a constantly
evolving document for Republican Governors, policy directors and staff, as well as for Republican
gubernatorial candidates to share policy ideas. This document will hold the collection of Best
Practices, as well as polling data and various other sources of approaching policy matters. It will also
contain ideas and assistance in supporting governors interactions with the federal government and
policy issues involving Capitol Hill.

What works in one state may not work for another state. Each state faces unique and complex
challenges that cannot be solved with a one-size-fits-all approachall the more reason to promote
state-centered means of developing policy strategies. Nevertheless, the interchange between
governors and staff regarding what solutions work best in addressing countless policy areas brings
growth and the opportunity to build off of one anothers ideas, in the end bringing the possibility for
more prosperous results amongst the states.

From Alaska to Idaho, Wyoming to Indiana, and Mississippi to Virginia, ideas and solutions from our
Republican governors offices are included in this document. The strength of states and of this nation
will be only furthered by effective, limited, and efficient government policy advancements. The states
are empowered by ideas like those in this collection, and with state leaders and governors working
together, solutions are made.

Republican Governors are united in the belief that states are the best developers for innovation and real
solutions to the Nations most pressing challenges. Original ideas in tax reform and balancing budgets,
education and health care, energy and infrastructure are not centered in Washington, D.C. politics and
games, but rather in the state capitals, in the offices of industry leaders and in the hands of those who
are implementing policy at the state level. Governors know what is best for their respective states, and
sharing these beneficial policies and innovative ideas strengthens the following guiding principles set by
the RGPPC:

Chapter 1: Creating Jobs and Economic Opportunity, Pages 3-41
States featured include AZ, IN, IA, KS, MI, NJ, ND, OH, UT, VA, WI, NE, NV, TN, LA, PR, SC, MS
Chapter 2: Providing Better Access to Quality and Innovative Education and Workforce Development,
Pages 42-84
States featured include AK, ID, OH, AZ, FL, IA, KS, PA, MS, OK, VA, NM, AZ, PR, NJ, NV, TN, IN,
SD, LA
Chapter 3: Capitalizing on Americas Energy Assets, Pages 85-108
States featured include AK, ID, IN, IA, ME, MS, NJ, OK, PA, PR, SD, TX, VA, WY
Chapter 4: Reforming Health Care, Pages 109-127
States featured include IN, UT, LA, ME, TX, ID, MS
Chapter 5: Balancing State Budgets: Funding State Priorities and Living within States Means, Pages
128-146
States featured include: PA, PR, OH, IA, IN, LA, VA, MS, TN, NJ
Chapter 6: Promoting Responsible Government, Pages 147-162
States featured include SD, IN, AL, VA, MI, NJ, AZ, PR, NJ, LA
Chapter 7: Creating Safer Communities, Pages 163-174
States featured include AL, AK, GA, ID, IN, LA, IA, LA, ND, PA, TX, VA, PR

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Chapter 1: Creating Jobs and Economic Opportunity

Job creation is one of the most important challenges facing our Governors. With national unemployment at 9.0%2 and
an ever increasing segment of the population losing faith in Americas future, job creation has taken center stage in
policy development in the states.

Job creation is really an amalgamation of many different policies. Everything from education to healthcare to economic
development plays a role in a vibrant economy. These policies are covered in other chapters of this report. In the jobs
chapter we will focus on two main drivers of economic growth: economic development policy and infrastructure
development and maintenance.

Featured states and programs in this chapter include:

ARIZONA Governor Jan Brewer, Arizona Competitiveness Package

INDIANA Governor Mitch Daniels, Major Moves

INDIANA Governor Mitch Daniels, Reforming Indianas Economic Development Agency

IOWA Governor Terry Branstad, Overhaul of Iowas Economic Development Policies

IOWA Governor Terry Branstad, Transportation 2020 Citizen Advisory Commission

KANSAS Governor Sam Brownback, T-Works

MICHIGAN Governor Rick Snyder, Michigan Economic Development Corporation (MEDC)

NEW JERSEY Governor Chris Christie, New Jersey Economic Development Authority (EDA) funding programs

NORTH DAKOTA Governor Jack Dalrymple, Linking Infrastructure and Economic Development

OHIO Governor John Kasich, HB 58, Retaining Jobs in Ohio

UTAH Governor Gary Herbert, A Plan for Job Creation

VIRGINIA Governor Bob McDonnell, Opportunity at Work Legislative Agenda

VIRGINIA Governor Bob McDonnell, Office of Transportation Public-Private Partnerships (OTP3)

WISCONSIN Governor Scott Walker, Wisconsin Economic Development Corporation (WEDC)

NEBRASKA Governor Dave Heineman, Talent and Innovation Initiative

NEVADA Governor Brian Sandoval, Developing Nevadas Economy

TENNESSEE Governor Bill Haslam, Economic Development Initiatives in Tennessee (includes tort reform,
industry clusters and investment)


2
United States Department of Labor, Labor Force Statistics from the Current Population Survey, http://www.bls.gov/cps/.

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LOUSIANA Governor Bobby Jindal, Cutting Taxes to Grow the Economy

PUERTO RICO, Governor Luis Fortuno, Growing Puerto Ricos Economy (P3 to Tax Reform)

SOUTH CAROLINA, Governor Nikki Haley, Unemployment Insurance Reform

SOUTH CAROLINA, Governor Nikki Haley, Tort Reform

MISSISSIPPI, Governor Haley Barbour, Enacting Real, Comprehensive Tort Reform

State funding Overview

Federal Action

ARIZONA
Governor Jan Brewer
Enhancing Economic Competitiveness

On February 16, 2011, Governor Jan Brewer signed into law a package of bills which would restructure Arizonas job-
creation initiatives, the most significant piece of legislation in recent years. The Arizona Competitiveness Package is
focused on both urban and rural job creation, and is intended to make this state a destination for business growth and
development.
Specific aspects of the legislation include:

The creation of a Quality Jobs Program, with corporate tax credits of up to $9,000 for each qualifying new job.
($3,000 per job, per year, with a 400-job cap)
An increase in the electable state corporate income-tax sales factor to 100 percent, up from the current 80
percent. This will encourage firms to establish headquarters and manufacturing centers in Arizona.
Re-authorization of the Arizona Job Training Program, providing job-specific, reimbursable grants to train
employees for new careers.
A four-year, phased-in reduction of the states corporate income tax to 4.9 percent, beginning in January 2014.
This will give Arizona the nations fifth most competitive corporate income-tax rate.
A 10 percent increase in the states Research & Development tax credit, encouraging further collaboration
between Arizonas research universities and the private sector.
A 5 percent acceleration of the depreciation schedule for business personal property, spurring purchases of new
equipment and other capital investments
A phased reduction in commercial, industrial, and agricultural property tax burdens and an increase in the
property tax rebate percentage on owner-occupied homes.

For complete text of the legislation: http://www.azleg.gov/legtext/50leg/2s/bills/hb2001h.pdf

Press

Arizona leadership can provide an edge in luring tech jobs
by James Lundy and Paul Hickman - Apr. 12, 2011
Special for the Republic

Arizona has lost more than 300,000 jobs since 2007. At the rate we're going, any meaningful, sustained recovery is still a
long ways off.


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According to the most recent quarterly economic forecast from the University of Arizona, unemployment will remain at
8 percent until 2014.

Recognizing the need for bold action, the governor and the state House and Senate have started to make the changes
we need to right our economy and reverse the boom-and-bust cycle instilled by an over-reliance on retail jobs and
housing starts.

First, our state's leadership enacted HB 2001, the Arizona Competitiveness Package, a robust initiative that fixes long-
term tax policy.

It also launches the Arizona Commerce Authority, giving the governor a chance to lead an economic-development
strategy and helping manage our state's fiscal challenges.

Next, the Senate overwhelmingly passed SB 1041, the Invest Arizona program, on a 24-5 vote. SB 1041 is a targeted
economic-development program that temporarily reduces real and personal property taxes for new investments
without costing the state more money.

Having already passed the House Commerce and Rules committees, SB 1041 now awaits a full House vote.

Currently, Arizona ranks dead last in the Mountain West in costs of doing business, with one of the highest property-tax
rates in the region.

As a result, the blue-chip firms we covet - especially those leaving California - pass over Arizona in favor of more
competitive locations like Texas, Utah or Colorado.

If passed, SB 1041 and HB 2001 together would make Arizona the No. 1 business platform in the Mountain West region.
Arizonans should expect to be No. 1 and, with a "yes" vote from our state representatives, we will be.

The competition for jobs and investments has radically changed. Armed with the programs in SB 1041 and HB 2001,
Arizona would now be able to target new and established industries through a direct retention and expansion strategy -
instead of being targeted by other states, as we are now.

With SB 1041 and HB 2001, our state leadership can give Arizona a new edge in the global competition for aerospace,
high-tech and manufacturing jobs.

James Lundy is president and CEO of Alliance Bank of Arizona and chairman of the Arizona Bankers Association. Paul
Hickman is president and CEO of the Arizona Bankers Association.

Read more:
http://www.azcentral.com/arizonarepublic/opinions/articles/2011/04/11/20110411lundy12.html#ixzz1ahLnebUO


INDIANA
Governor Mitch Daniels
Reforming Indianas Economic Development Agency

In 2005 Governor Daniels dismantled the Department of Commerce and replaced it with the Indiana Economic
Development Corporation (IEDC), with the Secretary of Commerce reporting directly to the Governor. A guiding principle
for IEDC is to act at the speed of business, not government. Its coordination with other state agencies that influence
economic development and effective strategies have created one of the best sand boxes in the nation for investment.
IEDC has closed on an increasing number of competitive deals through 2011.

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Indiana ranks 6
th
for business climate by Site Selection magazine, best business in the Midwest and 6
th
nationally by
Chief Executive, 1
st
in the Midwest and 10
th
nationally for low taxes by the Tax Foundation, the third freest economy in
the country by the Mercatus Center, and 5
th
nationally for low taxes and regulation by the U.S. Chamber of Commerce.


INDIANA
Governor Mitch Daniels
Major Moves

Indiana recently celebrated the 5 year anniversary of the 2006 Major Moves program. Major Moves includes the leasing
of the Indiana Toll Road and the state's 10 year transportation infrastructure plan. The concession proceeds ($3.8
billion) from the lease are being utilized to fund Indiana's 10 year road and bridge plan. The purpose of Major Moves
was to improve and expand Indiana's highways and bridges. Under the lease, a private operator, the Indiana Toll Road
Concession Company, operates and maintains the Indiana Toll Road. In addition to the daily operations and
maintenance, the ITRCC also committed to nearly $400 million in infrastructure upgrades to the toll road including the
implementation of electronic tolling and the addition of additional lane capacity along heavily traveled segments of the
road.

Indiana is known as the Crossroads of America. Indiana's central location in the country puts 80% of the nation's
population within a day's drive. Clearly, having a world class road and bridge system is essential to our economic growth
and development efforts.

Upon the completion of our 10-year plan in 2015, Indiana plans to have 413 new highway miles and 588 bridges
rehabilitated or replaced. Projects that had been promised for decades like I-69 from Evansville to Indianapolis, US 31,
Fort to Port and the Hoosier Heartland will be completed or substantially completed.
The news release regarding the 5 year anniversary of the Major Moves program and an overview of the lease
transaction can be found at: http://www.in.gov/gov/files/062911_Toll_Road_handout_(3).pdf

Due to the success of Major Moves, legislation was passed during the 2011 legislative session to expand the
opportunities to utilize public private partnerships in the area of transportation infrastructure. Details regarding this
new law can be found at: http://www.in.gov/legislative/bills/2011/PDF/SE/SE0473.1.pdf

Press

Major Moves equals major changes
Warrick News
By Timothy W. Young - Wednesday, October 26, 2011

Indiana Governor Mitch Daniels was in the area on Friday, Oct. 21 to celebrate the groundbreaking ceremony of the S.R.
261 expansion project.

"We see the need (for the improvement) and thanks to Major Moves we're here today to move this project forward,"
said Cher Elliott, spokesperson for the Indiana Department of Transportation.
The $12.1 million project will see upgrades to S.R. 261 from three to five lanes - two lanes in each direction, along with a
center turn lane - from S.R. 66 and Fuquay Road.

Beginning at Fuquay, the roadway will be upgraded to three lanes to Old Plank Road.

A dedicated turn lane will be established for Lake Ridge Subdivision with improved shoulders.


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Realignment to the intersection at Fuquay Road and S.R. 261 will also be completed.

Finally, a new stoplight will be installed at S.R. 261 and Peachwood Drive.

Ragle, Inc., located on Vann Road in Newburgh, was selected as the builder.

Daniels said that not only is the project good because of the local jobs that it is sustaining and creating, but for the safety
of motorists, especially students.

"It's about safety, it's about mobility and it's about jobs," he said.

The upgrades are right in the midst of a string of schools - one elementary school, two middle schools, one alternative
education school and one high school.

"... Indiana is now the transportation leader in the country," said Daniels. "I don't go anywhere where other governors
are or knowledgeable people from other states where they aren't envious of Indiana's program."

Elliott said that no major impacts to traffic flow will take place this year, however the roadway will remain open once
construction begins next year. The anticipated completion date is April 2014.

"We realize that we cannot shut down this road," said Elliott. "We can't even cut down a lane because it is such a heavily
traveled artery in Warrick County."

It is often joked that the southern part of the state gets forgotten by state leaders, but Elliott said that Major Moves has
allowed for multiple projects in the area, such as S.R. 66 and 62 improvements, as well as I-69.

"When it comes to roads and making them safe for the population, (the state) works hard at doing that," said Don
Williams, Warrick County commissioner. "We have a very good working relationship with the state."

Local politicians have been giving incentives to companies who are committed to hiring local residents, so Williams said
it is great to see a local contractor awarded the construction bid.

"That's a good thing," he said. "We're doing our best as elected officials to take care of our population first and that's
what we're elected to do. Ragle... is a Warrick County company. That's very exciting."

"We're trying to encourage local labor in the county on any project," said Commissioner Tim Mosbey.


IOWA
Governor Terry Branstad
Creation of Transportation 2020 Citizen Advisory Commission

On March 8, 2011, Governor Branstad announced the creation of the Transportation 2020 Citizen Advisory Commission.
This commission assisted the Iowa Department of Transportation in assessing the condition of Iowas roadway system
while evaluating the current and future funding available to best address system needs. The commission submitted a
report this fall.

The work of the committee was helpful to assess the current status of the Iowa transportation system. After reviewing
the report, Governor Branstad indicated that the state should first pursue increased efficiencies and potentially
eliminate a funding diversion before considering an increase in the state gas tax or other fee increases, especially during
a time of continued economic recovery.

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Press
IowaPolitics.com: Branstad: Find efficiencies before increasing gas tax
http://iowapolitics.com/index.iml?Article=252623

Iowa must first look for cost savings and efficiencies in government before it considers increasing the gas tax to pay for
the states deteriorating roads and bridges, Gov. Terry Branstad said Tuesday.

These are trying times for many Iowans, and before we ask them to pay a higher fuel tax, we must find more efficient
ways to utilize our current resources, Branstad told IowaPolitics.com outside a meeting of the Iowa Transportation
Commission, a seven-member board that oversees the Iowa Department of Transportation, or DOT.

Branstad made his comments immediately after the Transportation 2020 Citizen Advisory Commission proposed
increasing Iowa's gas tax by 8- to 10-cents a gallon. Iowa charges a tax of 21 cents per gallon on gasoline, 22.5 cents on
diesel and 19 cents on ethanol-blended gasoline. The commission is an 18-member panel assigned by Branstad to assist
the state in reviewing the needs and funding for Iowas roads and bridges.
The governor said he doesn't expect the increase in the gas tax, which would generate between $184 million to $230
million a year, to happen next year.
Instead, Branstad called on Iowa DOT Director Paul Trombino III to find administrative savings of about $50 million, or
the equivalent of 2 cents of the gas tax. Branstad said hed also like to examine the 1 cent of tax per gallon that's being
diverted from the states Road Use Tax Fund the main source of funding for Iowas highways to instead clean up
leaky underground storage tanks.
I think we must first examine all opportunities to reduce administrative costs and duplication at all levels of
government to make sure that we are good stewards of the tax dollars that we are already receiving, Branstad said.
We must spend the dollars that we receive more efficiently, and streamline operations to maximize each dollar.
Examples of such cost savings, he said, could come from reducing duplicate Iowa DOT facilities in the same county.
But Amy Reasner, of Cedar Rapids, chairwoman of the Iowa Transportation Commission, said such savings wont be
enough to meet the states $1.6 billion annual shortfall for transportation infrastructure needs, which includes $215
million a year that's considered critical.
I dont believe that there would be any way to use efficiencies to fund all of our critical shortages, she said. But just as
a family who may have more needs than income, sometimes we have to either put off things that are less critical, or try
to do some innovation in how were funding current projects.
Recently retired Iowa DOT Director Nancy Richardson, co-chairwoman of the Citizen Advisory Commission, said counties,
cities and the state could combine some facilities or make group purchases to find savings. But she also said theres no
$215 million fix for Iowa's roads.
Our system is about 50 or 60 years old, and weve been living on someone elses legacy I dont see the kind of
commitment to it that we had back in the 40s and 50s, Richardson said. Without that, were going to continue to see
roads crumble, bridges have to be closed, and I think until something dramatic like that happens, we just dont seem to
get it.

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Mike Wentzien, a lobbyist for the Iowa State Association of County Supervisors, is among those backing the proposed
increase in the gas tax. County supervisors manage 20,000 bridges and 90,000 miles of road. Some counties have
blacktop roads that are in bad shape, and are having to be turned back into gravel roads.
Were turning the clock back, and I dont want to see us go back into the days of the 30s, when we were in mud and
we had to get out of it, he said. It almost seems like without additional funding, thats the direction were going.
Wentzien said the time is right for increasing the gas tax to fix Iowas roads, which he said is good for economic
development and safety.
Richardson said it doesnt take much of a flood for Iowas roads and highways to be compromised, as they recently were
in western Iowa from the Missouri River flooding. It cost $50 million to repair and reopen those roads, although the
federal government will reimburse most of that money.
Despite those needs, Richardson predicted a gas tax increase will face an uphill battle in the Iowa Legislature.
I think its going to be tough, she said. Theres sort of an anti-tax sentiment right now, so its going to be tough to get
an increase in anything, I think. And then election years are always tough, so its got a steep hill.
Listen to Branstad interview:
http://www.iowapolitics.com/1009/111108Branstad_interview.mp3

IOWA
Governor Terry Branstad
Overhaul of Economic Development Efforts

Iowas New Economic Development Entity

Governor Branstad proposed and the Legislature approved House File 590, which created the Iowa Economic
Development Authority (IEDA). The newly formed Iowa Economic Development Authority will use the best aspects of
the public and private sectors to create a dynamic, results-driven partnership with programs and incentives that will
meet the needs for business growth. This model marks a new direction in economic development for the state and
consists of two arms the Iowa Economic Development Authority and the Iowa Innovation Corporation. Strategic
direction for the two entities will come from an additional board of industry leadersthe Iowa Partnership for Economic
Progress that will be chaired by the Governor and Lt. Governor.

The Iowa Economic Development Authority is a quasi-government agency that replaces the existing Iowa Department of
Economic Development and will perform its current duties. IEDA will have a more focused set of incentives, providing
maximum flexibility to meet the needs of potential employers. The second entity, the Iowa Innovation Corporation (IIC),
will serve as the private sector side of the economic development equation and will work to attract investors and
investment capital. A non-profit, the IIC will solicit funds for various sources in the private sector to be used further an
innovation ecosystem in the state of Iowa.

Iowa has set bold economic development goals for the coming years among them creating 200,000 private-sector jobs
and raising family incomes by 25 percent. This new approach to economic development will focus on innovation and
growing high-paying jobs that will support Iowas future.




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Jobs for Iowa
Governor Branstad and Lt. Governor Reynolds engaged in a several week tour across Iowa to provide Iowans
information regarding the administrations plan to create 200,000 new jobs and increase family incomes by twenty-five
percent.

Working Together for a Better Future
Governor Branstad engaged in a 43 city tour across Iowa to tout economic reforms in his budget that will increase Iowas
long-term sustainability. As Governor Branstad stated, The tour will provide Iowans information regarding my
administrations plan to build a strong fiscal foundation for the future and create jobs in Iowa.

Promote Job Growth by requiring a Jobs Impact Statement before any new administrative rule can be proposed
Governor Branstad signed Executive Order 71, which requires a Jobs Impact Statement so that rules that hurt jobs can
be identified before they impact job retention and development. State government is directed to regulate as effectively
and efficiently as possible without imposing unnecessary burdens that reduce jobs and hurt job growth. Small
businesses are the greatest generators of job growth and are also disproportionately burdened by regulations. This
executive order is designed to help small businesses and the Governors goal of creating 200,000 new jobs and putting
the 106,000 unemployed Iowans back to work.

Review all administrative rules to reduce unnecessary and burdensome regulation
Governor Branstads office reinstated preclearance of administrative rules before they are promulgated. The Governor
believes that while new policies that encourage a job-friendly environment can take Iowa a significant way forward in
our effort to compete for new jobs, much of that work can be undone by a bureaucracy that fails to understand the
critical relationship between burdensome regulation and job creation. The office has also made improvements to the
software for administrative rules to make the filing process less burdensome, reduce paperwork and lead to greater
efficiency.

Restore the fair and open contracting for public works projects and protect Iowa taxpayers by ending the use of
Project Labor Agreements (PLAs) for state and state-funded public works projects (Executive Order 69)
Executive Order rescinded the former Governors Executive Order on PLAs which increased the costs of public works
projects, chilled the competitive bidding environment for Public Works Projects, and hurt the Iowa taxpayer. Although
the Executive Order was challenged in court, the lawsuit was dismissed in September. The presiding Judge ruled that
EO #69 establishes funding conditions that serve the States proprietary interest in projects. In prohibiting PLAs, the
State of Iowa has made a decision that PLAs detract from a competitive bidding environment and that state funds and
state projects will benefit from eliminating coercive union tactics. The State, as the proprietor of its construction
projects, can make the decision not to pay union wages or operate under union conditions.

Reducing Record Keeping Burdens for Financial Institutions
Governor Branstad signed HF 405 into law, which will help Iowas financial institutions with record keeping regulations.
Specifically, this bill reduces the financial institutions record preservation time from 11 to 7 years.

Press

State works to reshape economic development efforts
October 6, 2011, 3:51 pm
By Rod Boshart/SourceMedia Group News
DES MOINES The pipeline of businesses looking to locate or expand operations in Iowa is full and the states top
economic development recruiter said Thursday she expects to seek up to $30 million in incentive money from
lawmakers next session to make sure Iowa can compete effectively to land or retain good-paying jobs.

Debi Durham, director of the reconfigured Iowa Economic Development Authority, said she has been given indications
from her boss, Gov. Terry Branstad, and top legislators that supplemental funds to recruit business prospects likely

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would be available if her agency runs short on funds as the June 30, 2012, expiration of the Grow Iowa Values Fund
approaches.

Right now the pipeline is full. Were seeing good lead activity, Durham told 11 news members of the EDAs oversight
board who assembled for an orientation session before they meet Oct. 20 to take their first formal action as part of the
public-private partnership that lawmakers approved last session at the request of Branstad. Were working. Were
bringing deals forward.

Durham said she is excited about the opportunity to start things anew in a leaned down agency that has seen seven
directors in the past decade and is beginning to reshape its focus to build an innovation eco system that will be
needed to meet Branstads goal of creating 200,000 new private-sector jobs and increasing Iowans income by 25
percent over the next five years.

I do feel a great deal of responsibility because my personal reputation and credibility is tied up in this. Believe me I
do not take that lightly, said Durham, who is at the helm of a public-private strategy that is comprised of the Economic
Progress Partnership and its seven-member board made up of Lt. Gov. Kim Reynolds and top business chief executives;
the Iowa Economic Development Authority, which is the state government arm overseen by its 11-member board; and
the Iowa Innovation Corporation, a nonprofit entity with a seven-member board that will be charged with raising $100
million privately in equity money to help finance startups moving from concept to commercialization.

Im going to tell you in order to separate ourselves in a world economy today it is all about innovation, innovation,
innovation, Durham said.

The Legislature did not include the Economic Progress Partnership in the legislation that created the new public-private
economic development entity, but Carmine Boal of the governors office said he expects to create it through executive
order and appoint the board members later this month.

Durham said she is in the process of revamping the states incentive programs and tax credit offerings to better target
resources in a holistic approach. She is hopeful the Legislature will agree to establish a pool of money to facilitate
university research that facilitates economic growth potentials and she is exploring other ways the state might help rural
companies facing ownership issues and other challenges that threaten their Iowa presence.

Research will play a key part if were going to innovate, she said. We need to be promoting ourselves as the R & D
capital of the world. Its a key component.

John Lisle of Clarinda, who formerly was chairman of the now-defunct Iowa Economic Development Board, was elected
Thursday to lead the new EDA board. David Bernstein of Sioux City, another hold-over from the old DED board, was
named vice chairman and leader of the panels due diligence committee.

Durham said she expected the new panel likely would be presented details of a new South Korean project at the Oct. 20
meeting that was the focus of discussions with Branstad and Durham led a trade mission to Korea, China and Japan
recently.
3








3
Rod Boshart, State works to reshape economic development effort, 10 11, 2011,
http://easterniowagovernment.com/2011/10/06/state-works-to-reshape-economic-development-efforts/.

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KANSAS
Governor Sam Brownback
Creating a new framework for transportation project development in Kansas
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In May 2010, the Kansas Legislature passed Transportation Works for Kansas (T-WORKS), an $8 billion 10-year
transportation program. T-WORKS is designed to create jobs, preserve highway infrastructure, and provide multimodal
economic development opportunities across the state.

More than 2,000 Kansans participated in the development of T-WORKS and helped create better business models for
each transportation mode. Below is a list of some the key features of T-WORKS:
A new highway project selection process that uses engineering data, local input and economic impact
analysis to evaluate projects. Economic impact analysis helps Kansans get a good return on their
investments (see below).

An expanded Economic Development Program, which will be more flexible and responsive (i.e. decisions
made in 45 days or less) to help communities capitalize on emerging economic opportunities.

A regional transit approach to make services more efficient and expand coverage across the state.

More Kansans will have access to air ambulance services thanks to a more strategic selection process for
aviation projects.

An expanded Rail Program that will now allow shippers and industrial parks to be eligible for program funds
along with local governments.

And T-WORKS means that Kansas highways can be maintained at the performance level Kansans have come
to expect.

Economic impact analysis process
Under T-WORKS, economic impact analysis will be used as a factor in selecting projects. The economic model, called
TREDIS, will be utilized in the analysis process. TREDIS estimates the number of long-term jobs, increase in Gross
Regional Product, added safety benefits and income growth that would result from a project. These factors are then
weighed against the cost of the project to determine its overall economic impact score. To calculate that score, TREDIS
relies on county-level economic data about employment patterns, business activity and freight movements by type,
amount and value. Rural and urban projects are scored separately. KDOT also discusses with communities how they are
impacted by projects. Its thought that Kansas is one of the few states to use this level of collaboration with
communities.

Expanded Economic Development Program
KDOT will now accept applications year-round, rather than only once a year as had been the practice. And, funding
decisions can be made in as few as 45 days, compared to the six months it used to take. The program also has been
expanded to include aviation, rail and transit projects in addition to highway and road projects. Funding is set at $10
million annually.




4
(Adapted from www.ksdot.org)


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T-WORKS projects are funded primarily through a 4/10 cent sales tax. Below is break down of how much funding each
program will receive over the 10 years of the program:
Highway Preservation Projects
$4.4 Billion

Highway Modernization & Expansion Projects
$1.7 Billion

Economic Development Program
$100 Million

Transit Services
$100 Million

Aviation Projects
$46 Million

Rail Projects
$40 Million

Special City County Highway Fund (Local Roads)
$1.6 Billion

Total Program
$7.9 Billion


MICHIGAN
Governor Rick Snyder
Michigan Economic Development Corporation (MEDC)

In State of the State Address, Governor Snyder called for a better and stronger Michigan Economic Development
Corporation focused on economic gardening as opposed to hunting by focusing on building businesses already in the
state. In order to comply with his mission, President and CEO of the MEDC announced new appointments and a new
direction for the MEDC under Governor Snyders Administration.

The MEDC is a public-private collaborative entity designed to promote economic development in the state. MEDC was
created in 1999 under the direction of former governor John Engler tasked with directly marketing the state for both
travel and tourism as well as to the business community.

Press

MEDC CEO Michael Finney talks about the job of creating jobs in Michigan
When he started his new job as CEO of the Michigan Economic Development Corp. earlier this year, Michael Finney said
he found out something strange.

The MEDC had protected the Pure Michigan tourism brand so much, Finney said, that other state departments shied
away from it.

"As we were out selling other state departments on using Pure Michigan we discovered that we had in fact told
people that they couldn't use it," he said. "So we're trying to fix that now."

14

Finney addressed a crowd of about 125 people Friday during the Ann Arbor/Ypsilanti Regional Chamber's annual Impact
public policy forum. He talked about the work the MEDC is doing to improve Michigan's brand, capitalizing on the
familiar Pure Michigan campaign.

"We think the brand is so good that we really ought to extend it to everything that we do," he said. "So we've really
adopted it as a business brand in addition to just being a tourism brand."

Finney, the former Ann Arbor SPARK CEO, gave credit to Gov. Rick Snyder and the Republican-controlled Legislature for
slashing business taxes by $1.8 billion this year. He said that sends a strong message about the state's commitment to
the business community.

"An 86 percent reduction in our business taxes in this state, that's huge," Finney said. "It's something that no other state
has done in the past several years. In fact, many of our neighboring states are actually looking to increase the cost of
business by increasing taxes."

Finney said nearly 100,000 businesses in Michigan no longer pay a business tax at all now, and that's a good step
forward as the state brands itself as flexible and pro-business.

Instead of luring new companies into the state with tax credits, Finney said the MEDC is focusing on nurturing existing
companies and finding ways to help them grow.

"Just think about the 100,000 companies that are no longer subject to the Michigan Business Tax," he said. "If those
100,000 companies could each add one or two jobs, we start to make a lot of impact on the 800,000 jobs that we've lost
over the last decade or so."

But just reducing business taxes won't grow all the jobs Michigan needs, Finney said. He stressed the importance of
developing business-to-business connections within the state.

"That's one of the things that we're doing now," he said. "I was amazed when I got to MEDC that there was no effort
under way or interest in making business-to-business connections."

Finney said the MEDC started talking to companies like DTE Energy and Consumers Energy about ways to encourage
them to buy more goods and services from Michigan-based companies. He said that led to a $500 million commitment
from those two companies.

"My back-of-the-envelope calculation says that for every $100,000 to $200,000 of new sales to any business, that
represents one new employee," he said. "So at $500 million, do the math and think about how many new employees
that represents. Just because two companies have decided they're going to spend $500 million more with Michigan-
based companies."

Finney said the question now is: What would happen if that gets extended to more and more businesses throughout the
state?

"And by the way, we're out selling this as one of our tools that we'll have in our tool kit, and we've got a number of
companies we're in negotiations with now to sign up," he said.

Finney said the state, for too many years, ignored the fact that it wasn't able to pay its bills, and so he respects the
governor and Legislature for taking action to balance the budget.


15
"Michigan, for the first time in many years, is clearly on solid financial ground as a state," he said. "I think that actually
positions all of our local units of government and other taxing jurisdictions schools or otherwise to actually be in a
much better position going forward."

Finney said the automotive industry is still a part of Michigan's future.

"We want to take every automotive opportunity we can get, but we also have to tell the world that we can make other
things," he said. "We can make aerospace, we can make medical device, we can make machine tool, we can make
general industrial, and the list goes on. But somehow we've got to make sure that we're selling that as our capability."
5



NEW JERSEY
Governor Chris Christie
Catalyzing Innovation

In August 2011, Governor Christie announced that funding would be available for technology and life sciences
companies through three New Jersey Economic Development Authority (EDA) programs.

The three programs, which are structured as subordinated convertible debt, will benefit early stage, emerging
technology and life sciences companies by providing growth capital to directly fund uses such as hiring key staff, product
marketing and sales:

Edison Innovation Angel Growth Fund, providing up to $250,000 to leverage the funding from private angel
investors, with a 2:1 angel matching fund requirement;

Edison Innovation VC Growth Fund, providing up to $500,000 to leverage the funding from venture capital-
backed investments, with a 1:1 venture capital matching fund requirement;


Edison Innovation Growth Stars Fund, providing follow on funding of up to $500,000 to support the best
performing Edison Innovation Fund -assisted companies that have received 1:1 match funding from an angel
investor/group or venture capital firm.

For more information on this, and other financing programs in New Jersey, visit http://www.njeda.com


NORTH DAKOTA
Governor Jack Dalrymple
Linking Infrastructure and Economic Development

On April 18, 2011, Governor Jack Dalrymple signed House Bill 1012, the state Department of Transportation 2011-13
budget, which includes unprecedented investments to improve roadways throughout North Dakota.
The growth of oil and gas development in the western part of the state has presented the need for robust infrastructure
development and improvements to help meet demand. As other states work to accommodate increased activity
surrounding energy production, North Dakotas example can be a useful template for helping

5
Ryan J. Stanton, MEDC CEO Michael Finney talks about the job of creating jobs in Michigan, 10 15, 2011,
http://www.annarbor.com/news/michael-finney-talks-about-medcs-efforts-to-brand-michigan-and-create-jobs/.

16
The ND Department of Transportations budget of about $1.73 billion includes funding for major roadway reconstruction
projects and repairs to state, county, city and township roads throughout the state. In North Dakotas 17 oil and gas
counties, funds will be distributed based on the DOTs observed road conditions and on road conditions indentified in a
comprehensive study completed in December by the Upper Great Plains Transportation Institute. Funding set aside for
road work in oil country includes an emergency clause so that projects can begin immediately.
Additionally, the infrastructure package includes funding dedicated for road improvement projects in the Devils Lake
area and for state, county, city and township roads across the state.
The states infrastructure funding includes:
$600 million to rebuild and repair state highways in every region of the state.

$228.6 million from the Permanent Oil Tax Trust Fund for state highway projects within the 17 oil and gas
producing counties in western North Dakota. Projects will include road overlays to increase load-bearing
capacity; the widening of roads, patch and repair work; and complete roadway reconstruction

$142 million from the Permanent Oil Tax Trust Fund for reconstruction and repair projects on city, county and
township roads within the states oil and gas counties

$60 million dedicated to the repair and rebuilding of city, county and township roads in counties outside the
states oil and gas region

$5.85 million dedicated from the general fund for state road reconstruction and repair projects in the Devils
Lake area

Funding for nine additional full-time employees to enhance road maintenance support, drivers licensing services
and motor vehicle registration services.


OHIO
Governor John Kasich
Retaining Jobs

Governor John Kasich signed HB 58 in March, 2011, which included a tax credit for businesses that received an offer of
financial incentives from another state in 2010.

Some other provisions of the bill include:
6


Incorporates into Ohio income tax law changes to federal tax law taking effect since December 15, 2010.

Temporarily changes the formula used to trigger state extended unemployment benefits based on the total
unemployment rate for the current time period the federal government is fully paying for those benefits for
claimants of most private sector employers.
Expands the job retention tax credit program to include a new, refundable job retention credit available to
businesses that meet preexisting program requirements and additional criteria.


6
Fiscal analysis, Sub. H.B. 58, March 7, 2011, http://www.lsc.state.oh.us/analyses129/11-hb58-129.pdf

17
Requires recipients of the new refundable credit to have received an offer of financial incentives from another
state in 2010 that may induce the recipient to relocate and to have agreed to invest at least $25 million and
retain at least 1,000 employees in Ohio.

Authorizes the new credit only temporarily by limiting eligibility to projects the Director of Development,
Director of Budget and Management, Tax Commissioner, and, if necessary, Superintendent of Insurance
recommend before July 1, 2011.

Limits the total of such credits to $8 million in any calendar year.

States that municipal corporations may provide a similar refundable job retention tax credit against the
municipal income tax.

Press
Ohio Senate OKs bill that could help persuade American Greetings to stay put
Wednesday, February 23, 2011
Reginald Fields, The Plain Dealer

COLUMBUS, Ohio - Gov. John Kasich will have another powerful trinket to use in his bid to entice American Greetings
Corp. to stay put in Northeast Ohio.

The Ohio Senate on Wednesday unanimously approved House Bill 58, a package of business tax reforms that includes a
provision allowing some businesses to claim a credit on the income taxes paid by employees.

State Sen. Tom Patton, a Strongsville Republican, had introduced the provision as a stand-alone bill but at the governor's
request agreed to roll it into HB 58, which had already cleared the Ohio House.

American Greetings was one of the first companies that Kasich targeted after he was elected last year once he learned
the company was thinking of leaving Ohio and taking 2,000 Northeast Ohio jobs with it.

Based in Brooklyn, the greeting card company told its employees in January 2010 that it was considering a move,
prompted by Brooklyn's decision to raise its income-tax rate from 2 percent to 2.5 percent.

The company is considering building headquarters in other Cleveland-area suburbs, but said it is also considering sites in
Chicago, which prompted an outpouring of support and arm-twisting not only from Kasich, but Cuyahoga County
Executive Ed FitzGerald and some suburban mayors.

The company could make a decision by later this month, which is why it was important that the legislature move fast on
this latest tax incentive that is not currently available in Ohio.

"We are very hopeful that this provides American Greetings with the support they need," said Kasich spokesman Rob
Nichols. "We will know more about all that as this moves forward."

The governor's office has been reluctant to reveal too much about what it is offering American Greetings to avoid
tipping its hand to Illinois, which could also be sweetening its offer to lure the company away.

Patton said he is not part of the discussions between American Greetings and the governor's office but hopes his
amendment helps keep the company in the Cleveland area.


18
"Privately as a Northeast Ohio person, I have just a private interest that I hope American Greetings stays," Patton said.
"But as to what this bill does, I'm just led to believe that the governor needed tools like this to keep companies, plural, in
Ohio."

American Greetings said the measure will be an important factor in its final decision on whether to stay or leave.

"Governor Kasich is keeping a commitment he made to us last year to look for ways to make American Greetings more
competitive and encourage us to keep our headquarters and its jobs in Ohio," Patrice Sadd, a spokeswoman for the
company, said in a statement. "Approval of the legislation will be a factor in our decision-making."

Because HB 58 was amended by the Senate to include Patton's provision, the bill will go back to the House for a
concurrence vote. But the bill enjoys bipartisan support and the amendment was requested by the governor, so the vote
figures to be a formality.

Under the new provision, companies eligible for the tax credit are those with at least 1,000 employees that agree to
make $25 million in capital improvements over three consecutive years and in 2010 received a written offer from
another state to leave Ohio.

American Greetings meets all three criteria.

The final details for how the credit would be calculated are still being worked out.

The credit would be good for 15 years.

Plain Dealer Reporter Janet H. Cho contributed to this story
http://www.cleveland.com/open/index.ssf/2011/02/ohio_senate_oks_bill_that_coul.html


PUERTO RICO
Governor Luis Fortuo
Growing Puerto Ricos Economy

Public Private Partnerships: Puerto Rico enacted one of the most advanced and aggressive Public-Private Partnership
laws in the country to encourage greater private investment and bring competition and efficiencies to schools, roads,
airports, energy, water facilities and other public infrastructure. Through the P3 program, Puerto Rico is currently in the
process of moving forward billions of dollars worth of infrastructure projects. This year, Puerto Rico closed a deal for
$1.4 billion in private infrastructure investmentthe largest such investment in any U.S. jurisdiction so far this yearas
a result of a P3 agreement to immediately upgrade and bring up to world-class standards PR-22 and PR-5, two of the
Islands major toll roads. The full concession of the main airport and the modernization and/or construction of 100
public schools throughout the Island are also underway.

Housing initiative: to spur the real estate market, the Fortuo Administration initiated a package of tax incentives
(running from Sept. 2010-Dec. 2012) which has spurred an over 80% spike in new home sales and an over 20% increase
in existing home sales. Puerto Ricos package of housing incentives, developed in partnership with the islands
construction and banking industries, includes financing and tax incentives for the purchase, sale and rental of residential
real estate properties, as well as similar incentives for commercial real estate transactions on the island.

Governing on a platform of smaller, more efficient government and delivering results.
o Implementing an aggressive plan to eliminate a $3.3 billion budget deficit he inherited. In just over two
years in office, Fortuo cut government spending by almost 20 percent, has lowered the deficit by 81% and
is on course to balance the budget in his first term.

19

o Slashed government spending by almost 20% overall: 10% cut in operating expenses (official vehicles, cell
phones, credit cards); 10% pay cut for the Governor and 5% for agency heads; 30% reduction in political
appointments; freeze on all salaries for two fiscal years; 15% cut in professional service contracts, and
voluntary and mandatory reductions of 23,000 government jobs.

o After five years of recession, Puerto Ricos economy is stabilizing and showing signs of recovery. Moodys
increased Puerto Rico general obligation bond ratings by three notches to A3 from Baa3, the highest
improvement given to any of the 34 states whose ratings it recalibrated and the highest for Puerto Rico in 35
years. Standard and Poors raised its outlook on Puerto Ricos credit from stable to positive, the first
positive credit review since 1983. Fitch Ratings just assigned a BBB + rating with a stable outlook to the
general obligations of the Government of Puerto Rico.

Implementing tax cuts to create the best climate for economic progress and growth. Gov. Fortuos tax cut law is
designed to create jobs and spur economic development; give immediate relief by dramatically reducing tax rates for all
taxpayers; simplify the tax system, with aggressive measures that target tax evasion; and provide incentives to work.
(Puerto Rico, as a U.S. territory, has a tax code based on the IRS tax code.)

o Tax cuts will provide an average $1.2 billion in tax relief, annually, for the next 6 years.

o Phase 1: Implemented retroactive relief for 2010 tax year to help jump start growth: an average 7% credit
for corporations, and 11% credit for individuals. Taxpayers saw results in their 2010 tax returns: those
earning $40,000 or less received a 15% cut; those earning between $40,000 and $100,000 got a 10% cut;
and those earning more than $100,000 received a 7% cut.

o Phase 2: New, simplified tax code starting 2011 implemented reduction in tax rates across the board, both
individual and corporate. Average rates reduced 50% for individuals, 30% for corporations.

o For Corporations:
Effective Jan.1, 2011, the top rate dropped from 41% to 30%. The previous seven-tier
corporate income brackets were simplified into three lowered rates (20%, 25% and 30%). By
2014, the top bracket will be further lowered to 25%.
For example, a small business that generates between $150,000-$200,000 and today pays
36%, starting January 2011 dropped to the 20% bracket.
A business that generates $2 million in earnings, which in the past paid a 39% tax rate, now
falls in the 25% bracket.
o For Individuals:
Average tax rates will drop 25% the first year, increasing to 50% cut over 6 years.
The local Alternative Minimum Tax (AMT) will be eliminated over a 4-year period.
To encourage work, the local earned income tax credit is being doubled from $300 to $600,
and the qualification limit increased from $20,000 to $35,000.

o A single individual without dependents earning $22,050 paid $1,421 before reform. For 2010, that individual
paid $213 less. This year, that figure will drop to $257.

A two-earner family with $61,490 in income and three dependents that paid $4,318 in taxes
received a $648 tax cut in 2010. For 2011, their taxes will be cut in half, from $4,318 to
$2,032. And in six years, that family will pay $609 in taxes, an 86% reduction in their tax
burden. During that time, that family will have saved $16,816.


20
o To sustain fiscal responsibility, individual tax reductions for years 2014-2016 are contingent on the
government meeting targeted goals in three areas: operating expenses, revenues, and economic growth.

o Closing tax loopholes and broadening the tax base.

Press
Washington can learn from Puerto Ricos economic model
The Daily Caller
Israel Ortega, Editor of www.libertad.org, a Spanish language site of The Heritage Foundation, Dec. 14, 2010
As our country weathers one of the worst economic recessions in its history, the tax debate in Congress continues. The
outcome of these negotiations will have huge consequences for the coming year. To see why this debate is so important,
we need only look to Puerto Rico to appreciate the effects of both good and bad tax policy.
Led by Gov. Luis Fortuno, Puerto Rico has been undertaking bold and courageous efforts to implement an aggressive
economic model. Despite facing harsh critics, it has met with considerable successes. Washington, D.C. lawmakers
should take note.
The island of Puerto Rico is small. But Puerto Ricans have made indelible contributions to our great country.
But just a couple of years ago, the Island of Enchantment was at the brink of economic collapse. As The Wall Street
Journals Mary OGrady reported, Puerto Rico had a 46% budget shortfall and was close to being downgraded to junk
status. The main culprit was an exceedingly high corporate tax rate that was scaring off potential investors.
Additionally, the governors office in San Juan had been responsible for unchecked runaway spending, leaving in its wake
a budget shortfall equal to $3.3 billion.
Sound familiar? If it does, thats because there are eerie parallels between Puerto Ricos failed economic policies and
what some here in Washington are proposing to get our economy back on track.
2010 will go down in the books as one of the costliest years for every single American taxpayer. The year started out
with a nearly $800 million stimulus plan, followed by a health care law that will cost close to $1 trillion (over the next
10 years). And that, of course, does not include the soon-to-be-signed-into-law omnibus bill that will fund all of our
government agencies. In this vein, it shouldnt surprise us that the electorate spoke a few weeks ago demanding a fresh
break from this dangerous course.
Of course, some still dont get the message.
In addition to inserting millions upon millions of dollars of spending into the flurry of bills being approved in the dead of
night, some lawmakers want to raise taxes. They argue that we need to raise taxes on families earning more than
$250,000 because its the right thing to do. What they wont tell you is that many of those families earning more than
$250,000 a year are also small business owners who employ Americans all across this country. If politics is a game of
perception, the Left is an expert in class warfare, championing itself as the protector of the working class.
These were some of the same arguments made by detractors of Gov. Fortuno as he embarked on a bold plan to cut
government spending while cutting taxes. He was called heartless by critics when laying off government workers, and a
protector of the wealthy as he cut the corporate tax rates.

21
Fortunately for the governor, and more importantly for the people of Puerto Rico, he is being vindicated for his boldness
and steadfastness in refusing to accept that raising taxes is ever a good idea. Not only is Puerto Rico no longer in danger
of being indefinitely shunned by international investors, this small and vibrant island is giving Washington, D.C.
lawmakers a blueprint for a successful economic policy plan.
Raising taxes is terrible policy. Even President Obama now agrees. Lets hope that he continues to defy the shrillest
voices in his party as Congress crafts an agreement on this important issue. Our economy is counting on it.

UTAH
Governor Gary Herbert
A Plan for Job Creation

Governor Herberts vision for economic development is that Utah will lead the nation as the best performing economy
and be recognized as a premier global business destination.

To accelerate this job creation across the state, Governor Herbert has said his administration will focus on three key
areas: First, he will work to increase access to capital, for Utahs small and start up businesses. He will work to ensure
that the Utah Fund of Funds, created by the Legislature three years ago, is focused on assisting UTAH companies.
Second, Governor Herbert expand Utahs GLOBAL vision. Utah's export growth is the strongest in the nation. To ensure a
continued focus on international business, Governor Herbert challenges Lew Cramer and other international business
leaders to double Utah exports in the next five years. Third, the Governor will urge the Legislature to pass Senator Ralph
Okerlund's Business Expansion and Retention bill to support companies throughout rural Utah. Utah has been
recognized time and again as a pro-business state, including, for the first time in Utahs history, a #1 ranking from Forbes
as the "Best State for Business and Careers" in America.

Governor Herbert has worked in creating partnerships with other stakeholders to catalyze economic development in
Utah. Utah State Senator Scott Jenkins ran legislation to create a Governor's Economic Development Coordinating
Council. This council will ensure that the collective efforts of government and the business community are focused on
jobs. This collaboration will be further enhanced by the co-location of many economic development entities into a
building, which will become Utahs World Trade Center, located in downtown Salt Lake City.

Two of the most important ways government can nurture a business-friendly environment are 1) to keep taxes low and
2) make regulation fair. Many states are raising taxes. Utah is able to keep taxes low and still pay for essential services -
because they have saved for a rainy day when times were good. Governor Herberts budget maintains at least 110
million dollars in the Rainy Day Fund and reflects his commitment to keeping taxes low. Increasing taxes on Utah citizens
and businesses will be counterproductive to economic recovery.

Governor Herbert understands that the purpose of government regulation is to maintain a level playing field. As a small
business owner, he has also experienced the cost and frustration of over-reaching and irrational regulation. In order to
separate regulations that serve an important purpose, from those regulations that serve no purpose at all, he has asked
each member of his Cabinet to review existing business regulations and determine which could be kept, which should be
modified, and which will be eliminated.

Last year the Governor created the Governor's Commission to Optimize State Government, chaired by former Governor
Norm Bangerter. Its mission was to conduct a performance audit of every aspect of state government. After a yearlong
review, they said: "One thing is clear . . . Utahns can rest assured that their tax dollars are being spent efficiently and
effectively."


22
But the best managed state can do even better. That is why Governor Herbert is addressing all 56 Commission
recommendations to make government even more efficient.

Press

Governor Gary Herbert pushes job-creation plan
By Cathy McKitrick
Salt Lake Tribune
September 27, 2011
Gov. Gary Herbert announced a plan Tuesday to help roll back the states jobless numbers, an effort that will involve
launching new start-ups, attracting new companies to Utah and expanding existing businesses.

"Lets see if we can hire 100,000 new people over the next 1,000 days," said Herbert, who proclaimed Tuesday as
Entrepreneurship Day, recognizing Utahs small businesses as the backbone of the states economy.

If Utahs 83,000 small businesses each hired one new employee over the next three years, the states unemployment
woes would be largely solved, Herbert told 200 entrepreneurs assembled at the state Capitol.

Utahs job growth currently hovers at 2.9 percent almost triple the 1 percent national average. And the states current
7.6 percent unemployment rate looks attractive compared with 9.1 percent nationwide.

However, 100,000 people in Utah are out of work, he said.

In mid-December, Herbert plans to roll out the details of his job plan that will launch Jan. 1, said Michael Sullivan,
communications director for the Governors Office of Economic Development.

"Those are jobs from entry-level minimum wage all the way up to CEO," Sullivan said of the effort.

Mark Knold, senior economist for the states Department of Workforce Services, said that if Utah maintains its current
2.9 percent growth, Herberts goal is reachable.

"Were still feeling the effects of the recession its consequences are still there," Knold said. "And yet were sitting at
2.9 percent growth."

Whether the state can sustain the status quo remains in question.

"It could also get knocked off track," Knold said. "The national economy could throw curve balls at the situation."

Jeff Thredgold, an economist for Zions Bank, agreed with Knold, noting that Utahs reasonable taxes and business-
friendly environment make it an attractive place for employers to land and expand.

"The biggest limitation to growth at the state or regional level," Thredgold said, "is the national economy thats not
growing at all."


VIRGINIA
Governor Bob McDonnell
Opportunity at Work Legislative Agenda

In 2011, several pieces of legislation which were part of Governor Bob McDonnells "Opportunity at Work" agenda were
passed by the Virginia General Assembly.

23

2011 Legislative Successes
Tourism Development Grant Program - SB1193/HB2285
Creates the Tourism Development Grant Program to allow certain locally endorsed tourism projects to temporarily
retain a portion of state and local tax revenue generated from the project combined with a matching contribution from
the developer to provide gap financing for the project

Creates a Business License Incentive Program - HB1587
Permits any county, city or town to provide relief from license taxes to any business locating in such county, city or town
for the first time, for the first two years after such location


2010 Legislative Successes
Creates the International Trade Facility Tax Credit - SB1136
Provides a $3,000 tax credit for each job created by a company involved in the import and export of goods through the
Port of Virginia that increases its cargo moving through the port by at least 10 percent in a given year

Directing Revenue to the Virginia Commercial Space Flight Authority - SB1447
Directs revenue generated by commercial spaceflight to the Virginia Commercial Space Flight Authority to develop
Wallops Island as an even more attractive spaceport

Research and Development Tax Credit - SB1326/HB1447
Creates a Research and Development Tax Credit for start ups and early stage firms in targeted industries, especially
those companies accessing research and development services through Virginia colleges and universities to strengthen
our business competitiveness

Virginia Winery and Vineyard Development Tax Credit - SB1264/HB1837
Creates the Virginia Winery and Vineyard Development Tax Credit to incentivize vineyard establishment and winery
expansion

Adjusts criteria for the Governor's Development Opportunity Fund - SB1379/HB1982
This initiative establishes a state-wide level of 50 new jobs and $5 million in capital investment, and it reduces the level
of required new jobs and capital investment for those localities that have a high unemployment rate and/or high
poverty

Since 2006, the jobs and capital investment qualification criteria for awards from the Governor's Development
Opportunity Fund (GOF) have been primarily based on the size of the locality where the project may locate, with nine
tiers of qualification. Population is not an indicator of fiscal stress or need for employment, so this is not the best criteria
to use to ensure this incentive can be deployed where needed most

Tourism Development Grant Program - SB1193/ HB2285
Creates the Tourism Development Grant Program to allow certain locally endorsed tourism projects to temporarily
retain a portion of state and local tax revenue generated from the project combined with a matching contribution from
the developer to provide gap financing for the project

Clean Energy Manufacturing Incentive Grant (CEMIG)- SB1360 /HB2316
Virginia has a number of by-right incentive programs for certain energy generation businesses, but these programs are
costly and have provided a limited return on investment
To address this issue, these programs will be reformed by rolling them into the new Clean Energy Manufacturing
Incentive Grant (CEMIG)


24
CEMIG will provide financial incentives to companies that manufacture or assemble equipment, systems, or products
used to produce renewable or nuclear energy, or products used for energy conservation, storage, or grid efficiency
purposes, in addition to the wind energy supply chain

Bolstering the Commonwealth Research and Commercialization Fund to create a comprehensive structure to grow
Virginia's innovation economy - SB1485/ HB2324
This program will serve as a catalyst for leveraging the entrepreneur, Virginia higher education research assets and
private-sector funding to encourage evolving technologies that create the industries, businesses and jobs of the future

Virginia Port Volume Increase Tax Credit - SB1481/HB2531
Provides a tax credit for any company engaged in the manufacturing of goods or the distribution of manufactured goods
that increases its cargo moving through the port by five percent in a taxable year


VIRGINIA
Governor Bob McDonnell
Advancing Statewide Transportation Initiatives through P3s

In June, Virginia Secretary of Transportation Sean T. Connaughton announced the official opening of the
commonwealths Office of Transportation Public-Private Partnerships (OTP3 office). The office will be responsible for
developing and implementing a statewide program for transportation project delivery via the Virginia Public-Private
Transportation Act (PPTA) of 1995.

The OTP3 will work in coordination with the secretary of transportation, all six Virginia transportation agencies, and
focus on the development of public-private projects across all modes of transportation.

The OTP3 has the following purposes:
Facilitate timely delivery of PPTA projects, within established laws and regulations

Develop multimodal and intermodal solutions consistent with state, regional and local transportation
policies, plans and programs

Encourage competition for innovation and private sector investment creating value-for-money for the
commonwealth

Promote transparency, accountability, informed and timely decision making

Establish reliable and uniform processes and procedures to encourage private sector investment

Seek efficiencies by standardizing processes

Foster efficient management of commonwealth financial and organizational resources

Achieve lifecycle cost efficiencies through appropriate risk transfer

Promote economic growth and job creation

The OTP3 Office will serve as the primary point of contact for public-private projects across all transportation modes to
address Virginias transportation needs. To further create efficiencies and better planning, the Office of Intermodal

25
Planning and Investment (OIPI) will be co-located with the OTP3. The OIPI was created in 2002 to encourage
coordination of multimodal and intermodal planning across Virginias various transportation modes.

OIPI staff work closely with planning staff from the various transportation agencies to develop Virginia's long-range
multimodal transportation plan, annual Transportation Performance Report and many other statewide multimodal
planning initiatives.


WISCONSIN
Governor Scott Walker
Restructuring Economic Development

Special Session Act 7 created a new Wisconsin Economic Development Corporation (WEDC), a public-private corporation
to replace the state Department of Commerce (Commerce). WEDC will lead Wisconsin's economic development efforts.
Governor Scott Walker chairs the WEDC Board of Directors composed of state legislators, departmental secretaries, and
private sector leader. The thirteen-member Board of Directors provides WEDC with strategic leadership and operational
oversight representing statewide public and private economic development interests.


The strategic planning process began immediately after bill passage and was guided by four principles.

BE BOLD. Wisconsin needs to make dramatic, not incremental, improvements in its economic performance.
The planning process of WEDC should incorporate bold, innovative solutions and challenge status quo
practices.

ENGAGE BUSINESS. The end customers are the businesses of Wisconsin. All metrics, processes, staffing, and
partnerships are dedicated to advancing business performance. The planning process and ultimate WEDC
organization must and will include Wisconsin business leaders.

OPERATE AS AN EXTENDED ENTERPRISE. Economic development in Wisconsin is driven by hundreds of
economic development organizations in the state. The planning process should engage these entities and
focus on how to leverage, mobilize, and align this network to achieve economic development goals.

MEASURE AND BE ACCOUNTABLE.

Continuous improvement and taxpayer accountability depends on reliable and timely data collection and feedback. The
planning process must incorporate measurable outcomes in the design of WEDC.
Organization
The organization to implement this strategic plan includes industry leadership, WEDC staff, and the Accelerate
Wisconsin network.

WEDC Board
A 13 member board led by the Governor and including four legislators and eight private sector leaders. The Board is
supported by a number of advisory groups:

Business Champions Council A group of business leaders who are willing to be champions for
Wisconsin business (peer marketing), provide input on proposed policy initiatives, and are available to
respond to periodic feedback requests on WEDC issues.


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Economist Advisory Council A group of seven economists who provide the WEDC Board and
leadership with guidance on macro-economic trends facing Wisconsin.

Division Advisory Boards Advisory groups of five to seven customers and stakeholders who provide
guidance to division planning and feedback on division services.



WEDC Staff
WEDC operations will be executed by an 80-100 person staff and select partner contractors working under the direction
of an appointed CEO. The WEDC organization consists of five operating divisions.

Entrepreneurship and Innovation Improves Wisconsins start-up business performance by implementing
early stage capital expansion programs and supporting technical assistance for start-up management. This
division is responsible for designing, supporting, and implementing initiatives to drive Wisconsins start-up
performance from 49th to the top 10 and for increasing private sector R&D investment by 50%.

o Key partners: the Wisconsin Technology Council, the Small Business Development Center network, the
Wisconsin Entrepreneurship Network and the Wisconsin Angel Network.

o Key tools: Early-stage grants and loans, investor tax credits, SBIR and incubator funding, supportive R&D
policy incentives, and new capital development vehicles.

Economic and Community Development Aligns, supports, and improves the performance of Wisconsins
economic development network. This divisions performance targets include moving Wisconsin business
expansion rankings to top 10.

o Key partners include: the Wisconsin Economic Development Association (WEDA), Regional Planning
Commissions, Regional economic development organizations, County and Municipal Governments,
Economic Development organizations, Main Street programs, and Workforce Investment Boards.

o Key tools include: Community Development Block Grant funds (economic development and
infrastructure), business expansion loans and grants, economic development infrastructure investments
(Client Relationship Management (CRM), measurement and evaluation tools), training and professional
development funding, regional development manager staffing and support.

Business and Industry Development Advances select business consortia, industry sectors, and high profile
business expansion opportunities by mobilizing state and other resources to deliver customized solutions.
Performance goals for this division include: Advancing 30 business consortia.

o Key partners include: MEPs, industry associations, and economic development contacts at state
agencies, university and technical colleges.

o Key tools include: Enterprise Zone designations, job tax credits, economic development loans and
grants, workforce and other training funds, state agency response teams.

Business Climate and Marketing Advances business and industry growth in Wisconsin by recommending
policy changes, mitigating state agency practices that are barriers to business growth, and securing federal,
state, and foundation resources for economic development advancement. Oversees state marketing
contractor and responsible for WEDC communications. Performance goals for this division include: moving
Wisconsin to the top quartile in Forbes business climate rankings.

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o Key partners include: WEDA, Wisconsin Technology Council, Governors Office, Competitive Wisconsin,
Wisconsin Business Council, DWD, Office of State-Federal Relations, university research, marketing
agency contractor

o Key tools include: WEDC marketing investment

Finance and Administration Puts in place a world-class infrastructure to support Wisconsins economic
development network. The division is responsible for providing tools (CRM, measurement and evaluation,
financial and performance reporting, website, and customer support service) to improve the performance of
WEDC operating divisions and the network of partners.

International Business Development Division - achieves its goals by providing technical assistance and
services focused in three critical export development areas: export education, market entry and market
development. Programs will focus on industry sectors poised for Foreign Direct Investment (FDI) and will
include a marketing strategy and material to promote the advantages of Wisconsin's business climate.


For more information: http://wedc.org/

Press

Wisconsin releases economic recovery guide
MADISON, Wis.
Wisconsin has issued a guidebook to assist with economic recovery following a disaster.
The free Community Economic Recovery Guidebook was released by the Wisconsin Economic Development Corporation.
It's directed at economic development organizations, businesses and community leaders.

The WEDC says steps taken by local civic leaders immediately following a disaster can make a significant difference in
how the community responds and having a strategy in place is important for long term recovery.

The guidebook's co-author, Gail Towers MacAskill, says the book provides a framework of discussions to help local
leaders speed economic recovery.

The book pulls from the experiences of communities that have gone through disasters.

A copy can be downloaded for free at http://bit.ly/wirecovery.

From: http://www.businessweek.com/ap/financialnews/D9PTKQH00.htm


NEBRASKA
Governor Dave Heineman
Talent and Innovation Initiative
One of the most important accomplishments of the recently concluded 2011 legislative session was the passage of
several bills focused on creating new momentum for developing and attracting businesses rooted in technology and
innovation.

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The Legislature gave unanimous support to four proposals that Governor Heinemann proposed as part of Nebraskas
Talent & Innovation Initiative. This package including the Nebraska Internship program, the Business Innovation Act,
the Site & Building Development Fund, and the Angel Investment Tax Credit was developed based on
recommendations made in a comprehensive review of Nebraskas economic climate. The 2010 Battelle study focused on
developing more highly-specialized career and business opportunities in the state through investments in technology
and innovation.
The Nebraska Internship program creates new internship opportunities for 500 to 750 college and university students to
gain job experience working with companies across the state. Funded with $1.5 million a year in job training funds,
awards will be made to companies creating new internships on a first-come, first-serve basis. The program went into
effect on June 1.
Nebraska is the only state in the nation with a program like this. By partnering with Nebraska businesses, we want to
connect students with opportunities to gain work experience, particularly in high-skill sectors, to help retain more
students after graduation.
The Business Innovation Act provides funding to help businesses develop new technologies that lead to quality job
opportunities across the state. Competitive grants will provide funding and technical assistance for research at Nebraska
institutions, new product development and testing, and help expand small business and entrepreneur outreach efforts.
A new Site & Building Development fund will help increase industrial and commercial sites available and ready for
business development. Most businesses are looking for sites that can be customized to fit their needs, rather than
properties where they are starting from scratch. Communities will match state funding, with a focus on securing land
and helping with infrastructure costs. Forty percent of the funding is set aside for projects in non-metro areas.
Finally, creating an Angel Investment Tax Credit encourages investment in high-tech and other startup Nebraska
enterprises by helping attract private funding starting with the current tax year. Eligible small businesses must have
fewer than 25 employees. Many states offer similar tax credits and what sets Nebraskas apart is that it is refundable
and available to a wide range of industries. That combination makes Nebraskas Angel Investment Tax Credit one of the
most competitive in the nation.
The Nebraska Department of Economic Development is preparing to implement these programs. Applications for
companies creating internship opportunities are available now. Grants and funding opportunities to stimulate business
innovation and development of commercial and industrial sites will be rolled out over the next several months.
The Talent & Innovation Initiative is about making investments today that will develop new career opportunities in
innovative and technologically-advanced sectors. It puts a laser-like focus on growing Nebraskas innovation economy.
With this initiative, Nebraska has a strong and coordinated strategy in place to advance business recruitment and
development.


NEVADA
Governor Brian Sandoval
Developing Nevadas Economy

In his State of the State, Governor Sandoval said, We owe it to Nevadans to renew our economic development efforts
for the realities of today. Due to the concerted efforts of the Governors Office and coordination with Legislative
leadership, economic development remained a priority throughout the 2011 Legislative Session. Below are some of
Nevadas economic development priorities.


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Tax Abatements for New Manufacturing Business- The Office of Energy has established regulations for granting
partial abatement of certain property taxes for new manufacturing businesses in Nevada which renovate an
existing building to meet energy efficiency standards.
Nevadas Jobs and Economic Growth Plan- The plans goals are to better coordinate and focus economic
development efforts to directly stimulate the creation of more businesses, industries, and research and
development. The plan creates a Cabinet level Office of Economic Development and reorganizes economic
development programs in the state. The plan also creates the Catalyst Fund within the Office of Economic
Development to provide grants to businesses and organizations. The budget includes an initial $10 million
appropriation. The plan also establishes the Knowledge Fund for development and commercialization of
research and technology at state institutions of higher education
Investing in Education- The state will invest $50 million in the State Permanent School Fund to provide private
equity funding to businesses engaged in certain industries located in or seeking to locate in Nevada.

TENNESSEE
Governor Bill Haslam
Economic Initiatives in Tennessee: Tort Reform, Industry Clusters, and Investment

Tort Reform
This past June Governor Haslam signed the Tennessee Civil Justice Act into law. One of his top legislative priorities his
first year in office, this reform was designed to increase certainty for businesses in Tennessee and improve the overall
climate for attracting jobs to the state. The Act:
Clarified and defined the venue where a business can be sued
Placed a $750,000 cap on non-economic damages, except in instances of intentional misconduct, records
destruction, or conduct under influence of drugs or alcohol
Raised the cap to $1 million on non-economic damages for catastrophic losses resulting in paraplegia,
quadriplegia, amputation, substantial burns or the wrongful death of a parent leaving minor children
Placed a cap on punitive damages of two times the compensatory damages or $500,000, whichever is greater,
except in instances of intentional misconduct, records destruction, or conduct under influence of drugs or
alcohol.

JOBS4TN
In April, Governor Haslam and Economic and Community Development Commissioner (ECD) Bill Hagerty laid out the new
administrations economic development strategy. The Jobs4TN plan focuses on:

Prioritizing target clusters and existing industries: Tennessee will focus its recruitment efforts on six target clusters in
which the state has a clear competitive advantage: automotive; chemicals and plastics; transportation, logistics and
distribution services; business services; healthcare; advanced manufacturing and energy technologies.
In 2010 expansion of existing business accounted for nearly 86 percent of new jobs created in Tennessee. The state will
focus on helping existing businesses expand and remain competitive through a targeted outreach program. A new
existing business toolkit of incentives and resources will be created for Tennessee companies.

Establishing regional jobs base camps across the state: ECD will fundamentally restructure its field staff to establish a
jobs base camp in each of nine regions across the state. Each base camp will work with local partners to develop
and/or revise a regional economic develop plan and align existing federal and state resources around that plan.
A key function of these jobs base camps will be reaching out to rural counties to incorporate them into broader regional
economic development strategies that leverage existing resources and maximize the assets of rural communities. A
newly-created position of assistant commissioner of Rural Development will help lead this effort.

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Investing in innovation: At the Tennessee Next Conference on May 5 in Nashville, Haslam detailed a major statewide
innovation initiative focusing on better coordination of innovation activities across the state, increasing technology
transfer and commercialization, promoting entrepreneurship and enhancing Tennessee companies access to early-stage
capital.

Reducing business regulation: Haslam has asked ECD to lead a review of federal and state business regulations. Over the
coming months, ECD will work with existing Tennessee businesses, business advocacy groups and state agencies to
identify federal and state laws and regulations inhibiting job growth.

INCITE
Earlier this year Governor Haslam announced a $50 million initiative designed to support innovation across the state.
The goal of the program, called INCITE for its focus on innovation, commercialization, investment, technology and
entrepreneurship, is to raise Tennessees profile in innovation-based economic development and drive growth in the
creation of knowledge-based jobs. INCITE is a component of Haslams Jobs4TN strategy and will be managed by the
Tennessee Department of Economic and Community Development (ECD).

There are four main areas of focus for the INCITE initiative:
Innovation Coordination- Haslams Jobs4TN strategy created nine distinct economic development regions across the
state. ECD will work with each of the nine regions to develop a strategic plan for economic development, each
containing a strategy for developing innovation using the regions unique assets. The Tennessee Technology
Development Corporation (TTDC) will play a key role in assisting with the development of these plans and will partner
with ECD to hold an annual Governors Conference on Innovation to share best practices.

Commercialization- ECD will launch a series of initiatives designed to help move new products and technologies from
the research lab to the marketplace faster. In March 2011, Haslam announced $10 million in funding for the Memphis
Research Consortium to enhance commercialization partnerships as a first step in this process. ECD will work with TTDC
to identify other opportunities to enhance technology commercialization activities across the state.

Entrepreneurship- ECD will fund a new or existing business incubator in each of the states nine economic development
regions. To receive funding, business incubators will commit to meeting critical benchmarks, such as raising specific
amounts of private sector capital for its tenant companies. ECD will also create a statewide incubator network to share
best practices and support efforts to raise private capital. As part of this effort, a Governors Award for
Entrepreneurship will be created and awarded each year at the Governors Conference on Innovation.

Co-Investment Funds- Tennessee will target $30 million toward the creation of early stage, seed, and mezzanine capital
co-investment funds. These funds will be designed to be self-sustaining and to compliment Tennessees existing
TNInvestco and Pathway Lending programs.

The remainder of the investment is made up of a combination of state and federal funds.


LOUSIANA
Governor Bobby Jindal
Cutting Taxes to Grow the Economy

In his first term, Governor Jindal vowed to lower the taxes that were discouraging business investment in Louisiana.
CATOs Fiscal Policy Report Card, which weighs revenues and tax changes, gave Louisiana an A in their 2010 ranking
because of Governor Jindals historic tax cuts. Job creating tax cuts and targeted incentives include:

The largest income tax cut in Louisiana history saving more than $1.1 billion over five years.

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Accelerating the elimination of the state sales tax on manufacturing machinery and equipment, saving business $4
million.
Accelerating the phase-out of the corporate franchise tax on business debt, saving business $26 million.
Eliminating the state sales tax on natural gas and business utilities, freeing up $68 million annually.
Eliminating the state capital gains tax on the sale of ownership interests in private businesses.
Eliminating the minimum corporate franchise tax and also excluding the first $150,000 of taxable capital.
Phasing in an exclusion from state sales tax for tangible personal property consumed in the manufacturing process.
Increasing the film production tax credit from 25 percent to 30 percent.
Extending the sound recording production and infrastructure tax credit.
Making the digital media tax credit permanent.
Extending the Technology Commercialization Credit and Jobs Program.
Improving and extending the Research and Development Tax Credit program.
Reenacting the Angel Investor Tax Credit program.


PUERTO RICO
Governor Luis Fortuo
Growing Puerto Ricos Economy

Puerto Rico Governor Luis G. Fortuo is implementing an aggressive plan to get the governments fiscal house in order
to close a budget deficit he inherited, re-start the economy in the short-term and create the foundation for new jobs
and a healthy, competitive economy in the long-term. To accomplish this, he is deploying a comprehensive pro-growth
strategy where entrepreneurship and innovation are drivers of economic opportunity, not government.

Puerto Ricos Comprehensive Tax Reform

Governor Luis Fortuo has enacted the largest tax cut in Puerto Ricos history, cutting Puerto Ricos corporate and
individual tax rates in an effort to renew the economy by encouraging job creation, growth, and prosperity.
Comprehensive tax reform is part of the Governors limited government, pro-growth agenda in Puerto Rico to eliminate
the budget deficit he inherited, encourage private sector success and work, and create the best, most attractive climate
for business and investment possible.

Gov. Fortuos tax cut law is designed to create jobs and spur economic development; give immediate relief by
dramatically reducing tax rates for all taxpayers; simplify the tax system, with aggressive measures that target tax
evasion; and provide incentives to work. (Puerto Rico, as a U.S. territory, has a tax code based on the IRS tax code.)
Tax cuts will provide an average $1.2 billion in tax relief, annually, for the next 6 years.

Phase 1: Implemented retroactive relief for 2010 tax year to help jump start growth: an average 7% credit for
corporations, and 11% credit for individuals. Taxpayers saw results in their 2010 tax returns: those earning
$40,000 or less received a 15% cut; those earning between $40,000 and $100,000 got a 10% cut; and those
earning more than $100,000 received a 7% cut.

Phase 2: New, simplified tax code starting 2011: implemented reduction in tax rates across the board, both
individual and corporate. Average rates reduced 50% for individuals, 30% for corporations.
o For Corporations:
Effective Jan.1, 2011, the top rate dropped from 41% to 30%. The previous seven-tier corporate
income brackets were simplified into three lowered rates (20%, 25% and 30%). By 2014, the top
bracket will be further lowered to 25%.
For example, a small business that generates between $150,000-$200,000 and today pays 36%,
starting January 2011 dropped to the 20% bracket.

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A business that generates $2 million in earnings, which in the past paid a 39% tax rate, now falls
in the 25% bracket.
o For Individuals:
Average tax rates will drop 25% the first year, increasing to 50% cut over 6 years.
The local Alternative Minimum Tax (AMT) will be eliminated over a 4-year period.
To encourage work, the local earned income tax credit is being doubled from $300 to $600, and
the qualification limit increased from $20,000 to $35,000.

A single individual without dependents earning $22,050 paid $1,421 before reform. For 2010, that individual
paid $213 less. This year, that figure will drop to $257.
A two-earner family with $61,490 in income and three dependents that paid $4,318 in taxes
received a $648 tax cut in 2010. For 2011, their taxes will be cut in half, from $4,318 to $2,032.
And in six years, that family will pay $609 in taxes, an 86% reduction in their tax burden. During
that time, that family will have saved $16,816.

To sustain fiscal responsibility, individual tax reductions for years 2014-2016 are contingent on the government
meeting targeted goals in three areas: operating expenses, revenues, and economic growth.
Closing tax loopholes and broadening the tax base.


Puerto Ricos Public Private Partnerships:

Puerto Rico enacted one of the most advanced and aggressive Public-Private Partnership laws in the country to
encourage greater private investment and bring competition and efficiencies to schools, roads, airports, energy, water
facilities and other public infrastructure. Through the P3 program, Puerto Rico is currently in the process of moving
forward billions of dollars worth of infrastructure projects. For more information on Puerto Ricos PPP program, visit:
www.p3.gov.pr.

PR-22 and PR-5 Toll Road Concession: On June 20, 2011, Governor Fortuo announced that Puerto Rico will receive
$1.436 billion in private infrastructure investmentthe largest such investment in any U.S. jurisdiction so far this year
as a result of the Public Private Partnership (P3) to immediately upgrade and bring up to world-class standards PR-22
and PR-5, two of the Islands major toll roads.

The Governor said that the multi-million investment will also help improve the Puerto Rico Highways and Transportation
Authoritys (PRHTA) financial condition so that it may regain its capacity to fund other transportation projects on the
Island. Fortuo added that the investment will benefit the local economy in the form of new jobs, new municipal tax
revenues, reliable utility payments, contributions to local police, and enhanced services to drivers.

The government selected Autopistas Metropolitanas de Puerto Rico, LLC, as the winning bidder for this first P3 toll road
project to be put together under the Puerto Rico P3 Act of 2009.

Autopistas Metropolitanas de Puerto Rico, LLCa consortium between Goldman Sachs Infrastructure Partners II, L.P.
and Abertis Infraestructurassubmitted the best proposal with a total estimated investment of $1.436 billion with
which the consortium will finance, repair, operate and maintain PR-22 and PR-5 over the next 40 years in accordance
with world-class standards required by the local government. The private investment will allow the PRHTA to retire a
significant portion of its outstanding debt.

The Puerto Rico Public-Private Partnership Authority (PPPA) indicated the winning proposal presented by Autopistas
Metropolitanas includes an upfront payment of $1.080 billion. In addition, the concessionaire is ready to invest an
estimated $56 million to complete what are known under the contract as Accelerated Safety Improvements (ASUs),

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among other investments, in the first three years of the concession and will also comply with a set of Operating
Standards to ensure world-class highways, which have been estimated to require $300 million of additional investment
over the term of the concession project.

On Nov. 15, the American Road and Transportation Builders Association (ARTBA), an organization representing 5,000
members in the transportation industry, awarded Puerto Ricos PR22/PR5 PPP concession ARTBA's Project of the Year at
the organizations 23
rd
annual Public Private Partnership Conference. ARTBA noted the project was the largest such
investment in the U.S. this year and the first brownfield PPP deal since the Indiana Toll Road in 2006. It is widely
anticipated this deal will serve as a catalyst for expansion in the U.S. PPP market.

Luis Muoz Marin International Airport: Puerto Rico shortlists consortia to acquire a concession to finance, improve,
operate, develop, modernize and maintain Luis Muoz Marn International Airport.

On Sept. 26, 2011, the Public-Private Partnership Authority together with the Puerto Rico Ports Authority announced
that six consortia have been shortlisted to proceed to the competitive procurement process for the public-private
partnership of Luis Muoz Marn International Airport.

The shortlisted consortia are, in alphabetical order:
1. Flughafen Zrich AG, Public Sector Pension Investment Board (PSP), Camargo Corra Investimento em Infra-
Estructura and Gestin e Ingeniera IDC;
2. Fraport AG and Goldman Sachs Infrastructure Partners;
3. GMR Infrastructure and Incheon International Airport Corporation;
4. Grupo Aeroportuario del Sureste and Highstar Capital;
5. Grupo Aeropuertos Avance (Macquarie and Ferrovial Aeropuertos)
6. Puerto Rico Gateway Group (GE Capital Aviation, Allegheny County Airport Authority, TIAA-CREF, OpTrust,
Airmall USA)

In August, the PPPA received the qualifications of twelve (12) proponents interested in taking part in the competitive
process for the Project. The credentials were analyzed, as stated in the Request for Qualifications (RFQ), taking into
account three main analysis areas: 1) Reputation, and Compliance with the Requirements of Puerto Ricos PPP Act; 2)
Technical Capabilities, and; 3) Financial Capacity. These three principal evaluation criteria have, in turn, a series of sub-
criteria including elements, such as: certification of no legal breaches, claims or conflict; good reputation and industry
recognition; operating and maintenance experience; experience with Federal Aviation Administration regulations;
customer service; airline relations; security; and financial capacity, among others.

The PPPA is preparing to move forward in the process, which entails inviting the six shortlisted consortia to submit
specific proposals for the project. The PPPA intends to issue an RFP in the coming months.

Puerto Rico Housing initiative:

To spur the real estate market, the Fortuo Administration initiated a package of tax incentives (running from Sept.
2010-Dec. 2012) which has spurred an over 82% spike in new home sales and an over 20% increase in existing home
sales in the programs first year. Puerto Ricos package of housing incentives, developed in partnership with the islands
construction and banking industries, includes financing and tax incentives for the purchase, sale and rental of residential
real estate properties, as well as similar incentives for commercial real estate transactions on the island.

Housing initiative program was recently extended in phases through Dec. 31, 2012. The program cuts property and
capital gains taxes for buyers, sellers and investors, and the rental initiative exempts residential rental income from
income taxes through 2020.


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Incentivizes Buyers both individuals and investors - to purchase property in Puerto Rico through a range of market-
based initiatives:
Zero or Reduced Property Tax on New Residential Property Purchases.
o 100% property tax abatement for five years for all new residential properties purchased through
December 31, 2011.
o 75% property tax abatement for five years for all new residential properties purchased from January 1,
2012 through June 30, 2012.
o 50% property tax abatement for five years for all new residential properties purchased from July 1,
2012 through December 31, 2012.

Zero or Reduced Capital Gains Tax for Buyers--Purchases of new and existing residential properties benefit from
future capital gains tax relief on the re-sale.
o New residential properties purchased through June 30, 2012 receive 100% exemption on future long-
term capital gains tax on the re-sale of non- principal residences. Those purchased between July 1, 2012
and Dec. 31, 2012 receive a 50% exemption on the re-sale.
o Existing residential properties purchased through June 30, 2012 receive a 50% exemption on future
long-term capital gains tax on the re-sale of non- principal residences. Those purchased between July 1,
2012 and Dec. 31, 2012 receive a 25% exemption on the re-sale.

Zero or Reduced Filing and Recording Fees--reduced payments for filing, recording and tax stamp fees in the
purchase of new and existing residences through December 31, 2012.
o New residential purchases through Dec. 31, 2011 pay zero filing, recording and tax stamp fees. Those
purchased between Jan. 1, 2012 and June 30, 2012 receive a 75% reduction in fees and purchases
between July 1, 2012 and Dec. 12, 2012 receive a 50% reduction.
o Existing residential purchases through June 30, 2012 receive a 50% reduction in filing, recording and tax
stamp fees related to the purchase and any satisfaction of mortgages on the property. Those purchased
between July 1, 2012 and December 31, 2012 receive a 25% reduction on these fees.

Incentivizes Sellers by cutting capital gains taxes and allowing for capital loss deductions to keep the market
moving.

No long-term capital gains tax on principal residences, ever -- Beginning Nov. 1, 2011, long-term capital gains
on the sale of any principal residence will be exempt from capital gains tax, basic alternative tax, and the
alternative minimum tax, regardless of the date or circumstances in which the property was acquired.

Zero Capital Gains Tax for SellersUntil Dec. 31, 2012, 100% long-term capital gains tax exemption for sales of
all existing non-principal properties.

Zero or Reduced Filing and Recording Fees
o New residential sales through December 31, 2011 pay zero filing, recording and tax stamp fees. Those
sold between January 1, 2012 and June 30, 2012 receive a 75% reduction in fees and those sold between
July 1, 2012 and December 12, 2012 receive a 50% reduction.
o Existing residential sales through December 31, 2012 receive a 100% reduction in filing, recording and
tax stamp fees related to satisfaction of mortgages on the property.
o Additionally, existing residential sales through June 30, 2012 receive a 50% reduction in filing, recording
and tax stamp fees related to the sale or transfer and those purchased between July 1, 2012 and
December 31, 2012 receive a 25% reduction on these fees.

Increased Deduction for Capital LossesUntil Dec. 31, 2012, Homeowners who sell their existing homes at a
loss through December 31, 2012 will be able to deduct up to $5,000 annually (up from $1,000) from their
reported ordinary income corresponding to the amount of the loss for up to 15 years.

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Boosting the rental investment market on existing rental property.

Exempts all income tax through December 31, 2020 on net rental income from residential leases entered into
after June 30, 2011.

Press

Murdock: Puerto Rico shows Washington the way
By DEROY MURDOCK, Scripps Howard News Service 11/17/2011
SAN JUAN, Puerto Rico - The gridlocked members of the congressional Supercommittee should grab President Barack
Obama and decamp to a tropical island. Specifically, they should visit Puerto Rico, where a courageous leader is using
free-market reforms to reinvigorate this recently moribund U.S. territory.

"We are clearly pro-growth," says Republican Governor Luis G. Fortuno. "And we do not apologize for that."
Fortuno last Tuesday hosted a delegation of conservatives who floated into San Juan aboard the Holland America Line's
MS Eurodam, site of National Review magazine's latest Caribbean cruise.

Fortuno was inaugurated on January 2, 2009, just 18 days before Obama. Since then, these two officials have marched in
opposite directions, with opposite results.

"We were closer to the abyss than most states," Fortuno says. "When I came into office, we were facing not just the
worst recession since the '30s, but the worst budget deficit in America, proportionally. We were literally broke. We did
not have enough money to meet our first payroll. We had to take out a loan to do that. At that point, my wife asked me
if we could ask for a recount."

So, unlike the free-spending Obama, and George W. Bush before him, Fortuno declares: "We cut expenses."
Fortuno gave himself a 10-percent pay cut. He trimmed his agency heads' salaries by 5 percent. That bought him the
credibility to chop overall spending by 20 percent. He booted some 20,000 government workers, through attrition as
well as layoffs, saving $935 million. (Compare that to Bush-Obama's 11.7 percent hike in federal civilian headcount since
the Great Recession began in December 2007 -- excluding temporary Census jobs.) Fortuno has shifted remaining
government workers from old-fashioned, statist, defined-benefit pensions to modern, market-friendly, defined-
contribution plans.

Ranked No. 51 in 2009, behind each of the United States, in terms of deficit-to-revenue, Puerto Rico now is 15th, with
the $3.3 billion deficit Fortuno inherited (44 percent of revenues) now macheteed to $610 million (7.1 percent).
Fortuno's reforms, including merging government agencies, led Standard and Poor's to upgrade Puerto Rico's credit
rating for the first time in 28 years. S and P, of course, famously downgraded U.S. sovereign debt last August, a historical
first. Meanwhile, America's national debt screamed past the $15 trillion mark on Wednesday.

Fortuno has sliced taxes. The corporate tax rate plunged last January 1 from 41 percent to 30 percent, en route to 25
percent in 2014. He cut average individual tax rates by one quarter this year and in half within six years.

"You needed to obtain an average of 28 permits and endorsements to do anything," Fortuno says, regarding regulatory
relief. "You had to go to 20-plus different agencies to do that. Today, you go to one agency, and you get your permit
there, or you can go to PR.gov, and get it online."

"We have created a better business climate, and it shows," Fortuno explains.

A five-year property-tax holiday and the scrapping of capital gains and death taxes have helped push existing home sales
up 35 percent this year (while they fell 7.9 percent on the Mainland) and new home sales soaring 92.2 percent (as they

36
sagged 9.9 percent up north) CVS, Nordstrom's, Pet Smart, P.F. Chang's, Saks Fifth Avenue, and Victoria's Secret all are
opening in Puerto Rico. "They're coming in brand new, for the first time, ever," Fortuno says. Honeywell and Merck are
expanding manufacturing facilities. Venezuela's Banesco is the first new bank to open in Puerto Rico in 13 years.

"We are moving in the right direction," Fortuno smiles. "We are creating jobs in the private sector, not in the public
sector, the way we should be. So, we can keep lowering taxes."

Ronald Reagan and Margaret Thatcher are among Fortuno's inspirations. Volumes by and about those visionaries grace
Fortuno's bookshelves. A small sign on his desk replicates one in Reagan's Oval Office. It explains Luis G. Fortuno's
success, begs Washington to listen, and simply says: "It CAN be done."

(Deroy Murdock is a columnist with Scripps Howard News Service and a media fellow with the Hoover Institution on
War, Revolution and Peace at Stanford University.)


InfraAmericas: As Europe Stutters, Spains Abertis Puts its Faith in the US and Latin America
Michael Dunning; November 2, 2011
Deal closings in the US P3 market are like oases in a desert. Theyre ultimately life-giving, but the journey to the well is a
long and arduous one. Theyre also of great symbolic value. In terms of its importance for Spanish infrastructure
developer Abertis, the latest US P3 deal closing the PR-22 and PR-5 toll road concession in Puerto Rico is right up
there. Autopistas Metropolitanas de Puerto Rico (Metropistas), in which Abertis is partnered with Goldman Sachs
Infrastructure Partners II (GSIP II), won the deal in June 2011 and closed it in September
We attribute the success of the PR-22 and PR-5 deal to two factors. The first is political will. Puerto Rican governor, Luis
Fortuo, believes in this type of reform and has been behind P3s, says Graells (Abertis). The second factor is the
contribution of the authorities in Puerto Rico led by the Puerto Rico Public-Private Partnerships Authority (PPPA) that
organized the procurement process in an extremely efficient manner. The deal closed in three months after choosing a
preferred bidder thats amazing.
Both men also believe that Puerto Rico will become a benchmark for US P3 deals. There is a lot of interest from the
US to see what Puerto Rico has done and how they have done it, says Graells. State governments in the US regard P3s
as exceptional. But they need to be seen as normal. This has affected the potential pipeline there.
One of Puerto Ricos biggest achievements has been creating a standalone P3 procurement authority the PPPA
following the examples of Australia, Canada and the UK. Thats yet to be done in other states within the US where
projects have typically been procured by departments of transportation. Providing a framework, or way of life, and
incorporating a team in the government is what [US states] need to do to put projects in the pipeline, says Graells.
Thats a big point.
Wall Street Journal: Puerto Rico Fires up Housing Market
By WESLEY LOWERY, August 13, 2011
Home sales are sizzling. In Puerto Rico.

A stimulus program on the island, long ripe with vacant houses and condos, has sent sales of new homes surging 80%
and sales of existing homes up 24% in the past 10 months from a year earlier, even as the market in much of the U.S.
mainland is dead.

The incentive plan, juiciest for new homes, has played a part in $2.6 billion worth of sales from its launch in September
through July, according to the Puerto Rico Housing Finance Authority. The program, which includes a variety of tax
breaks for both buyers and sellers of residential and commercial properties, was rolled out by Gov. Luis Fortuo as part
of his effort to revive the commonwealth's economy.

37

"This program could provide a road map for the rest of the country if the U.S. wants to get out of this recession," said
Mr. Fortuo, who took office in 2009 and is seeking re-election next year.


SOUTH CAROLINA
Governor Nikki Haley
Unemployment Insurance Reform (HB 3286)

House Bill 3286 lowers the new employer tax class from 13 to 12. This lowers the new employer's tax rate in 2011 from
5.428% to 2.866%, in line with surrounding states. The South Carolina Department of Employment and Workforce (DEW)
requested this change, and it lowers a barrier to entry for the new employers that we want in South Carolina. The new
law allows DEW to classify seasonal businesses and restrict eligibility for those employees to that time within their
season. As a result, employers have the option to apply to DEW for a determination that their business qualifies as
"seasonal" based upon the record of their wage volume over several years.

The employees of those businesses that qualify will no longer be able to draw benefits beyond the season of their
employment unless they have other non-seasonal employment in their base period. The employee would continue to
qualify for benefits if they separate within the season. The adoption of a seasonal category could result in approximately
three percent overall savings in benefit payouts and thus an approximately three percent overall rate reduction on base
tax rates for employers. The seasonal provisions are not scheduled to go into effect until January 2012.

The new law caps employers with a positive account balance between the period third quarter 2003 to second quarter
2010 at Tier 12 for 2011. This addresses the "anomaly" discovered earlier this year. DEW found that about two percent
of South Carolina employers have a positive account experience over the previous seven years but because of their small
size their separation experience put them in Tier 13 or higher.

Additionally, the law reduces the maximum number of weeks of eligibility for state benefits from 26 to 20. Federal
benefits will continue for as long as they are authorized, and the total now will amount to 76 weeks of potential
benefits. DEW expects that the reduction will result in an approximately 8% savings to the fund on an annual basis and a
corresponding tax cut for South Carolina businesses. Premium rates will be recalculated retroactive to January 1, 2011
based on General Assembly appropriations to the fund. The Senate allocated $100 million to the fund. The House
allocated $146 million to the fund. Either amount will result in significant relief to South Carolina employers.



SOUTH CAROLINA
Governor Nikki Haley
Tort Reform

In the 2011 legislative session Governor Nikki Haley took on tort reform as a major legislative agenda item. Tort reform
is about jobs - recruiting new ones and protecting current ones for small and large businesses. Governor Haley believes
that states with strong tort reform laws have lower business costs which can produce higher job growth. (Roll call in
House: 99 to 16; Senate 39 to 0.)

1. Tort costs are a tremendous burden on businesses. H.3375 helps reduce those burdens and create an environment
for businesses to thrive. Consider these statistics (Source: July 2010 U.S. Chamber Institute for Legal Reform):
Tort costs are expected to reach $183.1 billion in 2011 for all businesses.
Tort costs for small businesses in 2008 were $105.4 billion and are expected to reach $152 billion in 2011.
Small businesses bore 81% of business tort liability costs but took in only 22% of revenue.

38
Small businesses paid $35.6 billion of their tort costs out of pocket as opposed to through insurance.

2. With passage of H.3375, South Carolina is finally in a better position to compete with our neighboring Southeastern
states to recruit, expand and protect jobs.
Currently, South Carolina's lawsuit climate is ranked 39th out of 50 states by the U.S. Chamber Institute for Legal
Reform which used caps on damages as a key factor for rankings.
NC is ranked 17th and GA is ranked 27th.
SC was the only Southeastern state without a cap on punitive damages.

Background:
H.3375 was enacted June 20, 2011 (effective date is January 1, 2012). Roll call in House: 99 to 16; Senate 39 to 0.

Summary

Cap on Punitive damages: Generally, no award of punitive damages may exceed the greater of three times the
compensatory damages awarded to the plaintiff or $500,000 with exceptions for certain intentional conduct.
The cap increases to four times compensatory damages or $2 million if unreasonable financial gain and
unreasonably dangerous nature of the conduct is proven. (Florida model)

Civil Actions by Solicitor: requires written approval by the Attorney General. Important to control (but not
prohibit) government's litigation activity against businesses.

Disclosure of Automobile Insurance: requires automobile insurers to provide the limits of coverage upon
request except for fleet policy limits, umbrella coverage, or excess coverage

Building Code Violations: A violation of a building code is not per se fraud, gross negligence, or recklessness but
is admissible as evidence of fraud, negligence, gross negligence, or recklessness.

Bond required for an Appeal: The amount of a bond or surety that a court may require to stay execution of a
judgment pending its appeal is limited to the lesser of the amount of the judgment, $25 million for businesses
with 50 or more employees and gross revenues exceeding $5 million or $1 million for all other entities and for
individuals.

Press
South Carolina Governor Nikki Haley received the 2011 State Leadership Award at the U.S. Chamber Institute for Legal
Reform's (ILR) 12th Annual Legal Reform Summit for her unwavering commitment to legal reform in the Palmetto State.
In 2011, Governor Haley shepherded the South Carolina Fairness in Civil Justice Act to passage, a major step in reforming
South Carolina's legal standards and improving the business climate. "We're thrilled to honor Governor Haley with our
State Leadership Award," said Lisa A. Rickard, president of ILR. "Her successful efforts to pass important legal reform
legislation in South Carolina will make her state more competitive in recruiting new businesses while offering certainty
and stability to current ones." The South Carolina Fairness in Civil Justice Act caps most punitive damage awards at
$500,000 or three times actual costs, whichever is greater, with a special exception to raise the award in extraordinary
circumstances. (Press Release, U.S. Chamber of Commerce, 10/26/2011)

Gov. Nikki Haley signed legislation Tuesday that imposes limits on punitive damages that can be awarded in lawsuits in
South Carolina. Haley signed the tort reform bill at a ceremony at the State House Tuesday afternoon. The bill caps
punitive awards in the typical case at $500,000 or three times the actual damages, whichever is greater. In more severe
cases, awards now top out at $2 million or four times the actual damages including lost wages and hospital bills, if that
amount is more. This is the first time limits have been placed on punitive damages in the state. Cam Crawford is the
director of the pro-business South Carolina Civil Justice Coalition and says the limits will help make South Carolina more

39
competitive. Lawmakers gave the final approval to the bill in early June. (WACH, Haley Signs Lawsuit Payout Limit Bill,
07/26/2011)

Gov. Nikki Haley signed changes to South Carolina civil litigation laws on Tuesday, including a $2 million cap on punitive
damages that she said was long overdue. According to the S.C. Chamber of Commerce, which had sought the changes,
the new law includes a cap on punitive damages modeled after the state of Florida. The legislation caps punitive
damages greater than $500,000 or three times the compensatory damages awarded...Haley agreed that the lack of such
a provision hurt recruiting of industries. "It automatically became a topic of conversation," Haley said. "This was very
simple. This was a vote either for business or for trial lawyers." Haley said tort reform remains a work in progress. She
wants provisions added to the law that would require losers in civil litigation to pay the costs of the trial. She said she
thinks the changes create a "fair balance in our state," while still permitting citizens their day in court. (Charleston
Regional Business Journal, Haley Signs Tort Reform Law, Creating Punitive Damages Cap, 06/27/2011)


MISSISSIPPI
Governor Haley Barbour
Enacting Real, Comprehensive Tort Reform

Before Haley Barbour took office, Mississippi towns were losing quality doctors and health insurance rates were
skyrocketing due to out-of-control lawsuits. The American Tort Reform Association labeled the state a judicial hellhole.
Gov. Barbour tackled the crisis immediately in his first year, passing what the Wall Street Journal called the most
comprehensive tort reform legislation in the country. As a result, doctors stayed home to treat their neighbors and
applications to the state medical school increased with its leaders crediting tort reform as a primary reason.

Gov. Barbours efforts also:

Brought down the number of medical liability lawsuits against Mississippi doctors almost 90 percent just one year
after tort reform went into effect.

Medical liability insurance costs are down more than 60 percent since the enactment of Barbours tort reform.

Tort reform has been a successful job creation measure and is credited for luring major economic development
projects, such as Toyota, to Mississippi.

State funding overview
7


States provide about half of all surface transportation funding

Legislatures exercise more power over state revenues and appropriations

Only Colo., Hi., Mo., Penn., Wyo. and D.C. report allowing any state funds to flow directly to a DOT without state
legislative appropriation

Fuel taxes (all states + DC + PR; indexed in 6 states); primary source of funds in half the states

Sales taxes on gasoline or diesel (15 states + PR)

7
National Conference of State Legislatures, "Governing and Paying For Transporation Infrastructure." 9 August 2011
http://www.ncsl.org/documents/transportation/RALL_080911.pdf



40

Motor vehicle or rental car sales taxes (29 states)

Vehicle registration, license or title fees (48 states + PR)

Vehicle or truck weight fees (37 states)

Tolls(24 states + PR, plus non-state turnpike or tolling entities)

General funds (34 states + DC, plus VT as occasional exception)

Interest income (37 states + DC + PR)

Other(40 states + DC + PR)


Federal Action
Regulatory Flexibility
The Small Business Administration
Website: http://archive.sba.gov/advo/laws/law_modeleg.html

Resources for Economic Development and infrastructure
Resources on economic development, housing issues, land use, urban growth, rural and community development,
transportation and tourism.

Websites:
http://www.usa.gov/Government/State_Local.shtml
http://www.usa.gov/Government/State_Local/Economic_Dev.shtml

Legislation
HR 1249 - A bill to amend Title 35, United States Code, to provide for patent reform.
Sponsor: Lamar Smith (R-Texas)
Introduced: March 30, 2011
Brief Title: Leahy-Smith America Invents Act
Synopsis and Highlights: HR 1249 (PL 112-29) overhauls U.S. patent law. The law overhauls the U.S. patent system,
making changes to the way patents are awarded, reviewed and challenged. It also gives the U.S. Patent and Trademark
Office authority to set and adjust the fees it collects. But as amended by the House, the law allows appropriators to
maintain control of distributing patent office funding.

S 1549 - American Jobs Act of 2011
Sponsor: Harry Reid (D-Nev.)
Introduced: September 13, 2011
Official Title: A bill to provide tax relief for American workers and businesses, to put workers back on the job while
rebuilding and modernizing America, and to provide pathways back to work for Americans looking for jobs.
Synopsis: S 1549 would call for $200 billion in spending on unemployment benefits, infrastructure projects and aid to
state and local governments. The bill would provide $35 billion to prevent layoffs of teachers and first-responders, $25
billion for public school infrastructure and $5 billion for community colleges
HR57 - Disaster Recovery Improvement Act
Sponsor: Rep Scalise, Steve [LA-1] (introduced 1/5/2011) Cosponsors (2)

41
Committees: House Transportation and Infrastructure
Latest Major Action: 1/6/2011 Referred to House subcommittee. Status: Referred to the Subcommittee on Economic
Development, Public Buildings and Emergency Management.

HR402 - National Infrastructure Development Bank Act of 2011
Sponsor: Rep DeLauro, Rosa L. [CT-3] (introduced 1/24/2011) Cosponsors (70)
Committees: House Energy and Commerce; House Transportation and Infrastructure; House Financial Services
Latest Major Action: 3/23/2011 Referred to House subcommittee. Status: Referred to the Subcommittee on Domestic
Monetary Policy and Technology.

S652 - Building and Upgrading Infrastructure for Long-Term Development
Sponsor: Sen Kerry, John F. [MA] (introduced 3/17/2011) Cosponsors (8)
Related Bills: H.R.12, S.1549, S.1660
Latest Major Action: 3/17/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on
Finance.




























42
Chapter 2: Providing Better Access to Quality and Innovative Education and Workforce
Development

As Republican governors continue to face challenging budget issues finding innovative and efficient education reform
policies are a priority. Many governors have worked to raise overall quality of education by aligning the higher education
standards more closely with the needs of state businesses. Many states have also started to highlight the importance of
balancing accountability with incentives for teacher and school performances.

The three major issues of focus in most school reform initiatives are K-12, higher education, and charter schools.

Featured states and programs in this chapter include:

ALASKA Governor Parnell, The Alaska Performance Scholarship

IDAHO Governor C.L Butch Otter Priorities Set, Promises Kept

OHIO Governor John Kasich, School Choice Initiative

ARIZONA Governor Jan Brewer, Arizonas Education Reform Plan

FLORIDA Governor Rick Scott, Student Success Act

IOWA Governor Terry Branstad, Education Blueprint

KANSAS Governor Sam Brownback, Excel in Education

PENNSYLVANIA Governor Tom Corbett, Education Reform

MISSISSIPPI Governor Haley Barbour, Improving Education

MISSISSIPPI Governor Haley Barbour, Workforce Development

OKLAHOMA Governor Mary Fallin, Senate Bill 346-Ending Social Promotion

VIRGINIA Governor Bob McDonnell, Higher Education Commission

NEW MEXICO Governor Susan Martinez, Kids First, New Mexico Wins

ARIZONA Governor Jan Brewer, Education Reform

PUERTO RICO Governor Luis Fortuno, Better Access to Education in Puerto Rico

NEW JERSEY Governor Chris Christie, Education Reform

NEVADA Governor Brian Sandoval, Nevadas Education Transformation

TENNESSEE Governor Bill Haslam, Reforming Education in Tennessee

INDIANA Governor Mitch Daniels, Education Reform

43

SOUTH DAKOTA Governor Dennis Daugaard, South Dakota Innovation Lab Schools

LOUSIANA Governor Bobby Jindal, Improving Outcomes in Higher Education and Increasing Education
Outcomes for Students

ALASKA
Governor Parnell
The Alaska Performance Scholarship


As part of his commitment to improve K-12 education and prepare students for jobs of the future, Governor Parnell
proposed and fought hard to create the Alaska Performance Scholarship. Governor Parnells Performance Scholarship
won overwhelming support in 2010 and he signed SB 221 into law creating the Alaska Performance Scholarship.
Its an invitation to excellence for students, teachers, parents, and schools. Alaska is challenging every student to work
hard and take more rigorous courses throughout high school.

The Scholarship provides incentive for students to take a more rigorous curriculum and better prepare them for college
or job training and success. It will improve graduation rates and reward students for their hard work by making higher
education more attainable for Alaskas families.

Investing for Alaskas Future
In 2011 Governor Parnell was successful in securing a sustainable funding mechanism for the Alaska Performance
Scholarships. They will be funded by investments and interest earnings of $400 million set aside for Alaskas students
who challenge themselves by working hard.
Alaska Performance Scholarships will be available for the graduating class of 2011 and is attainable to over 8,000 seniors
this year. Many have already stepped up to take additional rigorous coursework to qualify.

The Alaska Performance Scholarship will:
Improve high school graduation rates
Increase parental involvement
Lead to higher college entrance exam scores
Retain more Alaskan students in Alaska
Create affordable post-secondary education opportunities
Position Alaskas economy for growth
Advance job training and workforce development
Prepare students for post-secondary education
Encourage students to complete their post-secondary degree and training in a timely manner

The Alaska Performance Scholarship challenges students by raising the minimally required curriculum bar to:
Four years each of mathematics, language arts, science, and social studies. (One year of which may include a
foreign language, an Alaska Native language, fine arts, or cultural heritage.)
OR
Three years each of mathematics and science;
Four years each of language arts and social studies; and
Two years of a foreign language or an Alaska Native language.

Students will also be required to earn high college entrance exam scores and GPAs:

44
The Alaska Performance Honors Scholarship is $4,755 and requires a minimum 3.5 GPA, plus 25 ACT score or
1680 SAT score
The Alaska Performance Achievement Scholarship is $3,566 and requires a minimum 3.0 GPA, plus 23 ACT score
or 1560 SAT score
The Alaska Performance Opportunity Scholarship is $2,378 and requires a minimum 2.5 GPA, plus 21 ACT score
or 1450 SAT score
8


Press

Governor visits area high schools, North Pole Rotary Club
FAIRBANKS Gov. Sean Parnell was in Fairbanks Wednesday, visiting area schools and various groups talking about a
wide range of topics.

For lunch, he met with the North Pole Rotary Club, where he spoke about oil production and creating incentives for
companies to invest in the state. He wants the legislature to lower oil taxes and streamline development.

He said he is working to keep oil producers in the state, where they can help grow the economy.

If theyre making profits, we want them here in Alaska, he said.

When a club member asked Parnell about school funding in the future on a per-student basis, the governor said he
doesnt see base student allocation increasing in the coming years.

During Gov. Sarah Palins administration, the per-student funding increased by $100 for three years straight. Parnell said
there was little result seen from the increases.

No tangible benefits were gleaned from that, he said. Were not happy with 64 percent of our kids entering ninth
grade finishing 12th grade.

He promoted the Alaska Performance Scholarship, which provides an incentive for higher-level courses and staying in
the state for post-secondary education.

Thats going to change the face of our workforce, he said.

Parnell visited Lathrop High School, North Pole High School and Monroe Catholic High School.

He answered questions from students who wanted to know about things ranging from the average day of a governor to
how many students would be able to take advantage of the performance scholarship.

Last year, Parnell said, 2,333 graduates were eligible for the scholarship. He told students the funding for the scholarship
comes from state money that doesnt affect the Permanent Fund dividends.
http://www.newsminer.com/bookmark/15525861-Governor-visits-area-high-schools-North-Pole-Rotary-Club







8
Adapted from (http://gov.alaska.gov/parnell_media/scholarship_images/APSFactSheet.pdf)

45
IDAHO
Governor C.L Butch Otter
Priorities Set, Promises Kept


Three bills (S 1108, S 1110 and S 1184) make up the Students Come First reform package and were approved and signed
into law by Governor Otter. The Students Come First plan restores decision-making and flexibility to locally elected
school boards (S 1108), creates a pay-for-performance system for Idahos excellent teachers (S 1110), and delivers
technology to classrooms, students and teachers (S 1184).

Reforming education: Pay-for-performance for teachers
S 1110 uses the Idaho Race to the Top application pay-for-performance proposal, which was agreed upon by all
stakeholders, as a basis for rewarding educators who accept hard-to-fill positions, who take on leadership roles, and
according to student achievement and academic growth. The pay-for-performance plan is funded by the reinvestment of
existing dollars and will provide school-wide rewards for Idahos best educators.

Investing in education
The Governor and Legislature increased funding for a third year of math and science curriculum and covered the cost of
college entrance exams for all students.

With the Governor Otters support, the Legislature approved significant increases in spending authority for the Idaho
Education Network (H 323), which brings high-quality, interactive Internet connections to every high school in the state.
Combined with three separate grants, including $3 million from the Albertson Foundation, the spending authority will
result in an additional investment of almost $4.9 million for Idaho education.

Through Governor Otters leadership the Legislature created the Idaho National Guard Youth Challenge program (S
1208) at an unused school in the northern Idaho town of Pierce. The program targets at-risk youths who have dropped
out of high school but are not yet in the criminal justice system. The program will be focused on assisting participants in
getting a high school diploma or GED.
9


Press
Gov. Otter remains a believer in states trio of education reforms
Without a doubt the most debated and controversial issue considered by this years Legislature was the education
reform package crafted by Superintendent of Public Instruction Tom Luna. The reform proposals drew hours of
testimony and debate, both in committee hearings as well as on the floors of the House and the Senate.
Summary:
1. S1108 phases out tenure and replaces it with one- or two-year contracts. It is intended to give local school
boards more decision-making power and it limits collective bargaining.
2. S1110 is a pay-for-performance measure. The idea is to reward teachers and school districts based on the
academic growth the students within those districts are showing. Rewards can be given at the local level by
individual districts and teachers may also be rewarded for taking leadership roles such as grant writing,
mentoring, creating curriculum, and obtaining some advanced teaching certification.
3. S1113 is designed to bring Idahos schools into the modern world. By introducing technology into the classroom,
laptop access for some students and allowing students to take online classes, proponents of the bill argue that
students are able to learn using the technology that is now part of the everyday world, computers.

9
Adapted from: (http://gov.idaho.gov/pdf/Priorities%20Set-Promises%20Kept%20-%20The%202011%20Idaho%20Legislature.pdf)

46
When something is changed, especially if its a drastic change, there is going to be controversy and opposition, said Gov.
Butch Otter, who supported the education bills during the legislative session, and still supports them despite opponents
of the bills gathering enough signatures to put them on the ballot for voter approval in November 2012. A recall effort
against Luna did not realize enough signatures, but it was another sign that the bills stirred up a lot of emotion.
The governor said the opposition to the education reforms didnt surprise me. Its something new so it didnt surprise
me. Im going to work to make sure we keep those three bills, those three reform bills in place. The high tech bill, the
negotiations, the transparency. Weve just gone in the last two months through a lot of the school boards around the
state, and the 115 school districts that have negotiated the new contract, that have put in the new vendors, that have
negotiated the contracts they need for the next year. And, not just with school teachers and other vendors. Theyve all
reported back how smoothly they went because they were transparent, because the media could come in and sit down
and if it was a one- or a two- or a three-day process or longer, they were prepared to report on it.
There will be ancillary benefits to the reforms, believes the governor. He feels school districts will now take a look at
options that will be taxpayer-friendly. I think all of those things (reforms) are big pluses for the taxpayers and big pluses
for the schools and the children themselves. Our focus is on the advancement of the students and how well theyre
doing in school and thats where it should be. But, we fully recognize that 85 percent of our costs are personnel costs,
whether its the superintendents themselves or the teachers or the administration costs, all of those kinds of things. I
think one of things that were going to find, which is a plus as far as Im concerned, is were going to see more and more
school districts come together and say, Why do you have a payroll system, and we have a payroll system too? Youve
got the better equipment, youve got the capability. Why dont you also use our payroll? So we wont have to have a
payroll system in this district, we can combine the two and have one payroll system, one accounting system.
He feels possible changes could find their way from administrative functions like payroll and accounting right up to the
management of the districts. He envisions that school districts can come together and say, You know, for the amount
of students we have and distance that we have to travel, we could have one superintendent over the two school
districts. Thats now management back in the hands of the patrons.
The big test, of course, comes in November 2012 when the three education referendums go before the voters in the
general election. It should be a good turnout with national, state and legislative offices on the ballot in addition to the
education reform issues.
The governor is confident the reforms will survive the vote. I think as the citizens of Idaho, who are going to go vote on
those reform bills in 17 months, are going to see more pluses than all the minuses that theyve heard about.
10














10
Mitch Coffman, Gov. Otter remains a believer in states trio of education reforms, June 28, 2011,
http://www.idahoreporter.com/2011/gov-otter-remains-a-believer-in-state%E2%80%99s-trio-of-education-reforms/.

47
OHIO
Governor John Kasich
School Choice Initiative

Ohio maintains three school choice initiative programs
11

1. Autism Scholarship Program
Provides scholarship to parents of autistic children to be sent to special education program other than
childs public school district to receive individualized education. Scholarships worth up to $20,000
annually.
2. Educational Choice Scholarship Program (EdChoice)
Provides scholarships to students attending consistently underperforming public schools. Used to
attend nonpublic schools that meet requirements. Currently 9,712 EdChoice scholarships in use.
3. Cleveland Scholarship and Tutoring Program
Cleveland Municipal School District specific program with preferences to low-income students that
provides vouchers up to $3,000 to students to attend public or private school of parents Choice.
Governor Kasich has stated, in The Reforms Book
12
(2012 Fiscal Year budget), that:
High-performing schools embrace choice and see it as a catalyst for making a difference for children. They
recognize that when adults compete for the right to educate our children, the children win.
Governor Kasichs current budget proposal for the 2012 Fiscal Year calls for the following reforms regarding school
choice:
1. Double Scholarship Availability
Increases EdChoice scholarship from 14,000 to 30,000 in first year and 60,000 in second. Will also allow
students in bottom 5% of performance ranking (as proposed in budget) to be eligible for vouchers.
2. Remove the Cap on Community Schools
Remove current limit on community based schools, which continue to provide quality alternatives to
existing schools. Not allow poor-performing sponsors to open new community schools.
3. Eliminate the Transfer of District Collective Bargaining Agreement (CBA) to a Conversion School
Removes requirement of community schools to transfer CBAs when opening new facilities. Allows
creation of an innovative environment, which is what community schools were originally designed to
create.
4. Enhance Community School Access to Facilities
Extends the current provision that community schools have in regards to first right on purchase of
district properties to first right on district leases as well.

11
School Choice Ohio, School Choice Ohio, http://www.scohio.org/.
12
http://obm.ohio.gov/documentwcache.aspx?id=26f5ebc5-02f4-4a53-8076-08a50c4c5d7d

48
5. Creates fourth voucher program, the Jon Peterson Special Needs Scholarship
13

Scholarship program for students with special needs who has an Individualized Educational Program
(IEP). Approximately 13,000 scholarships worth 90% of students funding amount. Can be used at private
schools, to increase existing private services, or at other public schools.
Press
Ohio Governor John Kasich Signs Significant School Choice Expansion
Budget provisions will expand, strengthen existing programs, introduce new special needs program
Washington, D.C. (June 30, 2011) Two of Ohios existing school choice offerings will be significantly expanded and the
state will become the first in the country with four different school voucher programs after Gov. John Kasich today
signed into law a state budget that considerably increases the number of educational options available to Buckeye State
families.

The American Federation for Childrenthe nations voice for school choicejoined ally School Choice Ohio in praising
state legislators and Gov. Kasich for supporting the important budget provisions, which will give thousands of Ohio
children new hope for a better future.

Included in the two-year state budget is a provision that more than quadruples the size of the EdChoice Scholarship
Program over the next two years, ultimately resulting in up to 60,000 students having access to private school choice by
the 2012-2013 school year.

The budget also creates the Jon Peterson Special Needs Scholarship, which will give approximately 13,000 special needs
children scholarships that can be used to pay for private school tuition, to defer the costs of attending an out-of-district
public school, or for other services. The program is named after a former state legislator who was a staunch advocate for
special needs families.

Legislators in Ohio have once again stood up for families that lack access to high-quality educational options, and we
thank them for putting kids first, said AFC Chairman Betsy DeVos. They, along with Governor Kasich, have placed Ohio
on an important path towards ensuring that all parents are able to give their children a shot to live out the American
Dream.

In addition to the creation of a new program and the EdChoice Programs expansion, one of the states other voucher
programsthe Cleveland Scholarship and Tutoring Programwill see increases in scholarship amounts. The increases,
between $800 and $1,550 per student, will bring scholarships more in line with the amounts offered by the EdChoice
Program, and high school students will also now be eligible to apply for the Cleveland Scholarship Program.

The EdChoice Programwhich uses a failing schools model to determine which students are eligiblewill also likely see
a spike in the number of students who qualify, thanks to a change in the criteria used to rate school performance.
Though the original period to apply for EdChoice scholarships ended in April, an additional application window will begin
on July 1 to allow newly-eligible families to apply for the 2011-12 school year.

Ohios budget comes less than a week after the Wisconsin budget also included a significant expansion of school choice.

13
http://www.scohio.org/PressReleases/6-30-11%20Ohio%20Budget%20Expands%20School%20Choice.pdf


49
Along with Indiana, which created the nations most expansive voucher program earlier this year, almost a dozen states
have in 2011 enacted legislation that will create, expand, or restore school choice programs.
14


ARIZONA
Governor Jan Brewer
Arizonas Education Reform Plan

In 2009-2010, the State of Arizona responded to an opportunity to apply for federal Race to the
Top funds designed to support states efforts to address the nations four education reform priorities: college and
career-ready standards and assessments, effective data use, great teachers and leaders, and support for struggling
schools. When Governor Brewer made the decision to apply for Race to the Top funds, she did so with the intention of
developing a state education reform plan that would serve as a roadmap to improve Arizonas education system and
ensure its students are prepared for the 21st century.

In keeping with the Governors commitment, shortly after notification of the Race to the Top awards Governor Brewer
charged the P-20 Coordinating Council (Council) with examining the
Race to the Top Round II proposal to determine what, when and how the major reform initiatives described in the
proposal could be implemented.

Underlying Concepts and Assumptions
As a result of discussions throughout the process, the four priority areas were recognized as the four pillars of Arizonas
reform plan, with vital support areas (e.g. Regional Centers, STEM,
etc.,) being threaded within and across the four pillars. The work group identified the following concepts and
assumptions that underlie the recommendations:

1. All four pillars need to be involved in varying degrees for each initiative/task to be successful, recognizing that
the four pillars not only support the reform platform, but support each other as well and are interdependent.
For example, key elements of the data system need to be in place, as they set the foundation for the entire plan;
improving struggling schools will only happen if staffed with highly effective teachers and leaders.

2. The plan requires all P-20 education institutions to support and make needed changes to improve public
education.

3. Budget will be an issue. Examine resources across the state budget, as this is not just a K-12 or P-20 issue. Use
available funds, along with additional grant opportunities, knowing they will have to be reallocated and
repurposed as needed.

4. Each group K-12, higher education, early childhood needs to take ownership of their piece of the plan,
determining implementation strategies and sharing public accountability reporting with the P-20 Coordinating
Council. The P-20 Coordinating Council needs to strongly support the education reform plan that it recommends
to the Governor.

5. The plan needs to be reassessed and updated on a regular basis. While the four pillars form the core of the plan,
they may not be all-inclusive. This plan will continue to evolve with the implementation phase.

Recommendations


14
American Federation for Children, Ohio Governor John Kasich Signs Significant School Choice Expansion, June 11, 2011,
http://www.federationforchildren.org/articles/398.

50
As charged by Governor Brewer, the P-20 Coordinating Council, through its P-20 work group, has developed the
following recommendations based on analysis of the urgency, feasibility, and capacity to implement the initiatives and
strategies outlined in the education reform plan developed through Arizonas Race to the Top application. The
recommendations are organized in two groups: those that are specific to the four pillars and those that are overarching.
It is important to note that although a few recommendations must be considered before others can be implemented,
they are not listed sequentially or by order of importance; but rather, the recommendations are interrelated, one
building upon another. The recommendations, therefore, should be viewed as a whole to fully address the systemic
nature of these reform efforts. Notations at the end of each recommendation reference the pillar and the section of the
Race to the Top proposal in which the initiatives are described: (B=Standards and Assessment,
C= Data Use D= Great Teachers and Leaders, E= Struggling Schools); task numbers reference the priority initiatives/tasks
outlined in the reform implementation timeline table that follows.

I. Reform Plan Recommendations: the Four Pillars

Recommendation 1: Create a Statewide Longitudinal Data System (SLDS) governance structure that spans P-20 and
beyond. The data system needs to be ready in time for, if not ahead of, the needs of the other priority areas.
Additionally, while it may appear that the Arizona Department of Education is solely responsible for the SLDS and that
many of the recommendations are focused on the K-12 component of the system, the SLDS must be a data management
system that seamlessly links P-12 and higher education with other agencies such as labor, commerce, health etc. That
strongly suggests that the ultimate responsibility for developing and implementing the system be the responsibility of a
governance structure and leadership that does not reside in only one agency. It is recommended that this work needs to
be led by more than the P-20 Coordinating Council and needs a dedicated staff member, at least part-time, to manage
the development and implementation of the Data System across the various stakeholders and agencies and across the
other three pillars in order to meet timelines and assurances of SFSF [Tasks 1, 5, 6, 18, 19 C (1) (2) (3)].

Recommendation 2: Expand SLDS reach into the workforce, and support more than P-20.
The SLDS that is envisioned is not just a P-12 system, or even a P-20 system, but rather an integrated data system that
also reaches into the workforce, providing access to quality data and meaningful information that not only ensures
excellent teaching and maximizes learning and student achievement but also drives and supports success in the
workplace, economic development and personal prosperity. [C (3)]

Recommendation 3: Move data systems from compliance to use with a focus on teachers and teacher leaders.
Indicative of the inflection point that the state believes are at in moving from data for compliance purposes to the use of
good data and information to inform our thinking, planning and decision making, a very high priority has been given to
the use of data and data systems by teachers and teacher leaders. [Tasks 2, 3, 4, 8, 9, 10, 15, 26, 27, 33 C (2) (3), D
(1)(2) (5)].

Recommendation 4: Ensure that the SLDS links student performance data to specific classrooms and teachers, districts
and schools, and teacher preparation programs. While the general topic of data gathering, analysis and access is
discussed above, it must be emphasized that virtually all of the needs related to Great Teachers, Great Leaders are
predicated on the timely, comprehensive delivery of meaningful, actionable data that links student performance to not
just district and schools and specific classrooms and teachers but also to specific teacher preparation programs to
inform decisions and drive improvement. [Tasks 2, 8, 19, 23, 24, 25 B(3), C (2)(3), D (2)]

Recommendation 5: Make the Common Core State Standards and the accompanying assessment a high priority. They
are foundational to reform efforts, clearly linked to other reform efforts, and critical in meeting student achievement
goals [Tasks 11, 12, 13, 14, 21, 25, 28, 31 B (3)].

Recommendation 6: Communicate to LEAs the transition plan from current AIMS items based on state standards to
assessments based on the CCSS. LEAs need to be clear that the transition is not a redesign of AIMS and there will be

51
several years where the common core state standards need to be taught while the current AIMS tests are given [Tasks
11, 25, 27, 31 A (2), B (3), C (3)].

Recommendation 7: Expand formative assessment tools and development of interim assessments. This may be
accomplished through IDEAL, the PARCC consortium, current district systems and /or other efforts that will develop as
this effort moves forward [Tasks 13, 21, 28, 31 - B (3)].

Recommendation 8: Establish the use of educator evaluations to facilitate continuous improvement at all levels of a
school. More meaningful evaluation tools that are based largely on student achievement will only be meaningful if they
are used to drive behaviors and decisions around compensation, promotion and retention of teachers and
administrators. They must also drive the allocation of professional development resources dedicated to helping
underperforming teachers and administrators improve as well as help excelling teachers and administrators reach their
full potential [Tasks 8, 9,15, 27, 29, 30, 33 A (2), C (3), D (2)(3)].

Recommendation 9: Enhance incentives for alternative pathways. Central to the goal of increasing the number of
effective teachers and administrators in Arizonas public schools is our ability to increase the pipeline of highly capable
and highly qualified candidates for those positions. The current environment relies heavily on the schools of education
at our three state universities and a handful of private post-secondary institutions. An immediate goal would be to
identify any barriers to expanding this range of sources. A longer range goal is to create a feedback loop that uses the
data generated by a fully implemented evaluation system to provide information to those institutions pointing to the
strengths, weaknesses and gaps in their teacher and administrator preparation programs. The potential also exists for
leveraging existing alternative sources (Teach for America, Arizona Teaching Fellows, et al for example) through more
aggressive public-private partnerships to bring more high potential candidates into the pool, particularly targeting more
hard-to-staff subjects and geographic areas [Tasks 14, 15 D(3)]. 0

Recommendation 10: Provide pre-service and new teachers and administrators with meaningful mentorship and
induction experiences. Student teachers and aspiring principals should have the opportunity to be mentored by
successful educators, especially in high needs areas, to ensure that they are prepared for these challenging positions. By
the same token, new teachers and administrators should have access to strong induction programs. Several exist and
should serve as models for expansion [D (3)(5)].

Recommendation 11: Provide incentives for highly effective educators to work in struggling schools. One of the
highest priorities for improving student outcomes is to ensure an adequate supply of teaching and leadership excellence
and expertise to our most challenged schools and students most in need. Targeted strategies around incenting highly
effective educators to work in these schools on both a short term (as part of a turnaround team) and long term (as
permanent staff) basis have been suggested ranging from financial incentives including stipends and/or student loan
forgiveness, specialized programs such as grow your own teacher recruitment and development, and targeted public-
private partnerships. Several exist and have the potential to be expanded with relatively modest increases in invested
resources [Tasks 4, 15 D (1) (3)].

Recommendation 12: Grow a cadre of turnaround experts at the teacher, principal, and district levels through a
turnaround leadership training program that coordinates various leadership training opportunities. This is one of the
most challenging projects for the state but also the most important, and is essential to changing the culture and
performance in historically underachieving schools. This can be done through a turnaround leadership training program
specifically designed to prepare educational leaders to work in failing schools. While the early efforts of building this
cadre of turnaround specialists will be focused on the most severely struggling schools, the long-term goal is to have a
wealth of expertise at the state and local levels so performance declines can be mitigated as quickly as they are
detected. In addition, many of the turnaround specialists can train other education professionals, further increasing the
pipeline.
These specialists can also help districts develop this turnaround and educational improvement capacity themselves.
There are a number of leadership initiatives being implemented; however, they are fractured and may be duplicative in

52
certain areas. It is integral to get the various groups working on leadership issues to come together for a common vision,
share resources, and focus [Tasks 15, 17, 22 D (3), E(2)].

Recommendation 13: Create a unified accountability system. Arizona has a disjointed accountability system that needs
consolidation so that all Arizonans have a clear understanding of the status of their school achievement. The current
system relies on one set of performance data under Arizona Learns, another set of measures under NCLB, and now a set
of standards under the Persistently Low Achieving schools under the federal SIG grants. Combine these with the new
school labeling statute and it creates multiple and potentially contradictory measures of performance. In order to
effectively manage and improve performance, the measures used to benchmark performance must be stable and
understandable. The current system of multiple measures creates confusion and weakens the ability of the state to
accurately discriminate performance [Task 16 E (1)].

Recommendation 14: Evaluate the need to modify the academic receivership statutes to ensure that the state has
sufficient remediation authority at the school and district level. While ADE has school improvement teams in place and
has ramped-up turnaround principals trainings through AZ Leads and ADE, more aggressive receivership options may be
needed. It is anticipated that the most aggressive receivership options would only be used sparingly [E (1)].

II. Overarching Reform Plan Recommendations

Recommendation 15: Support Arizonas Education Reform Plan through reallocation and multi-purpose funding. This
work must be funded from multiple perspectives and sources, ensuring little to no duplication of effort and
expenditures. Considerations include:
Reviewing existing state level funds that can be utilized.
Reviewing other significant bodies of work, currently funded, that require strong data systems, as multi-
purpose funding opportunities. For example 1) LEAs plans to allocate funds to develop and enhance their data
systems, 2) Multiple ASU Teacher effectiveness projects (PDS, TAP, NEXT), and 3) Maricopa County REIL
(Rewarding Excellence in Instruction and Leadership). The extent to which elements of these plans can be used
as models or lead vehicles for needed elements of the state system should be explored.
Reconsidering how current funds are being used and reallocate, particularly where current investments are not
getting desired results.
Making connections with other organizations across the education and workforce economic development
enterprise. Ensuring that these connections are at least comprehended in our long range plan may also give us
the opportunity to apply for funds from state and federal level agencies like Commerce, Labor and Economic
Development.
Seeking new funding, both public and private, wherever feasible

Recommendation 16: Create Regional Centers to address and support LEA capacity issues.
Successful implementation of these initiatives will ultimately rely on what occurs at the LEA level. As noted in the work
teams analysis, capacity issues must be addressed. Some, as contrasted to most, LEAs may have the capacity for
implementing standards, assessments, educator evaluation systems and instructional improvement. The Regional
Centers are seen as important delivery structures for locally accessible professional development and technical
assistance on these high priority initiatives that need to be implemented state-wide. Coordinated support from ADE in
cooperation with Regional Centers will provide a more efficient and effective approach to systemic reform efforts [Task
33 A (2), C (3)]. This system should address as its focused priorities:

Support to LEAs in transitioning to the common core standards and assessments. Support and assistance in
curriculum alignment, standards based instruction and use of interim and formative assessments will be critical
to both teachers teaching and students learning.
Training and support for Arizonas SLDS and effective data use. Professional development is critical in
supporting the implementation of the Arizona Growth Model, using data to inform instruction as well as the
new performance review process for teachers and leaders.

53
Implementation of educator evaluation systems. SB1040 requires that individual teacher and administrator
evaluations be based at least 33% (and up to 50%) on student performance data with observational data and
other factors accounting for the remainder. Considerable training and support will be required to effectively
implement a new evaluation system and manage the cultural change that will predictably follow in many public
school environments.
Support and assistance for struggling schools. On site assistance to struggling schools will support school efforts
to improve and close achievement gaps.

Recommendation 17: Engage higher education at a deep level in the implementation of the Arizona reform plan.
Colleges of Education, along with other providers of teacher pre-service programs, play a lead role in preparing a new
teacher. A strong commitment from higher education will be needed to ensure pre-service programs prepare teachers
to teach in a standards based system. In addition, the PARCC assessment, of which Arizona serves as a Governing state,
includes a college-ready assessment intended to be widely accepted by higher education institutions as a good indicator
of a students readiness for college-level courses. Higher education will need to be actively involved in the assessment
development to ensure that happens [Task 14 B (3)].

Recommendation 18: Establish, monitor and report performance measures and benchmarks that are public and
transparent. Metrics and trajectories for student achievement have been set and will need to be monitored in order to
meet identified targets at the transition years, Grades 3, 5, 8, and 10. In addition, performance measures and
benchmarks need to be established for the initiatives in the plan. Public transparency and accountability will be
necessary to ensure the plan is moving forward and progress is being made [A (2)].

Recommendation 19: Clearly articulate the role of the P-20 Coordinating Council in implementing Arizonas education
reform plan. If one considers governance across the P-20 continuum and with an understanding of the statutory
authority embedded within each of Arizonas education sectors, it is without question that the Governor plays the
leading role of owning the vision, i.e. articulating how Arizona will be transformed by systemic reform, along with the
urgency and criticality of pursuing the same. The Governor is in a position to provide greater public transparency of
progress on the systemic reshaping of Arizonas P-20 continuum through the timely reporting on key metrics. The
Governor, in her role as the states chief executive, is in a position to articulate education priorities reflecting a P-20
perspective through her use of the bully pulpit, executive order, and/or legislative/budget agenda.

The P-20 Coordinating Council should continue to play a leading role in supporting the Governors vision of education. It
is recommended that as the current Council moves from a focus on transitioning Arizonas Race to the Top application to
Arizonas education reform plan heavily focused on the critical role of the states K12 system, the Governor in
consultation with the Council should engage in the following:

1. Establish the mission of the P-20 Coordinating Council with consideration of the following:
Continue serving as an advisory council to the Governor;
Communicating/coordinating efforts within and across education sectors, which may include the
establishment of broadly-stated P-20 goals and objectives while recognizing the role of each education
sector in developing its own goals and objectives in support of the states P-20 vision;
Advocating for the shared reform plan to all stakeholders and constituencies;
Strategically connecting the purpose and reshaping of education efforts to non-education key stakeholders;
Reporting to the Governor progress on key P-20 metrics;
Identifying areas warranting further review/analysis;
Establishing accountability measures to inform the Councils work, which may include convening ad hoc
committees and/or authorizing ad hoc research or reports; and,
Assuming a leading role in developing strategies to support the long-term viability/sustainability of
coordination, collaboration across Arizonas P20 continuum.

2. Develop in light of an agreed upon P-20 Coordinating Council mission:

54

Proposed membership with the expectations of members clearly articulated, for consideration by the
Governor;
Council protocols for managing and evaluating its work, including process for establishing standing and/or
ad hoc committees; and,
Measures to be used by the Council to assess its own progress in meeting its stated mission.
15



FLORIDA
Governor Rick Scott
Student Success Act

In 2011 Governor Rick Scott signed into law five bills that made up Floridas Student Success Act. Senate Bill 736, the
Student Success Act, signed into law at the charter school, KIPP Impact Middle School in Jacksonville. The historic bill
puts in place part of the Governors 7-7-7 Plan by requiring merit pay for Floridas public educators based on student
achievement. The legislation changes how teacher performance is evaluated, including the following:

1. Teachers will be evaluated using a scale of four levels for performance (highly effective, effective, needs
improvement and unsatisfactory), instead of being evaluated as either satisfactory or unsatisfactory. In 2009,
99.7 percent of teachers earned a satisfactory evaluation.
2. At least half of an educators evaluation will be based on student learning gains for classroom teachers, 30
percent for non-classroom personnel and 40 percent for school administrators, instead of 100 percent of the
evaluation being based on principal or peer review.
3. Teachers in hard-to-staff subject areas, like math and science, will earn more money, instead of paying all
teachers regardless of subject taught using the same scale.
4. After July 1 of this year, new teachers will work on annual contracts, instead of receiving tenure after three
years of satisfactory evaluations, which is essentially an employment contract for life.
16


Press
Gov. Rick Scott signing Student Success Act today

Jacksonville, Florida -- Governor Rick Scott signed into law the Student Success Act on Thursday morning. He signed it at
KIPP Impact Middle School in Jacksonville.
Then later Thursday he will travel to Tampa. The Teachers Union is planning to protest.
Former Gov. Charlie Crist vetoed a similar bill last year.
It's a top priority, though, for the new Republican governor and the first to get his signature. The GOP-controlled
Legislature put the bill (SB 736) on a fast track and passed it just a week after this year's regular legislative session began.
Scott, a former hospital company executive, also is a proponent of publicly funded but privately operated charter
schools like the one he's chosen for the signing ceremony.

15
Adapted from (Arizonas Education Reform Plan:
http://www.azgovernor.gov/dms/upload/PR_011811_ArizonaEduReformPlan.pdf and Arizona School Choice:
http://www.arizonaschoolchoice.com/
16
The Office of the 45th Governor of Florida Rick Scott, Governor Scott Signs Student Success Act, March 24, 2011,
http://www.flgov.com/2011/03/24/governor-scott-signs-student-success-act/.

55
Despite the negative attention the bill has received, Scott stands behind it. "This is part of the process making sure
education is 100 percent focused on the benefit of students," said Scott.
It targets teacher merit pay, ties 50 percent of a teacher's evaluation to student test scores and ends tenure for new
hires. Teachers say the bill will weaken the profession and some parents agree.
"Some teachers will step up to the challenge, some may back away and change profession under that kind of pressure,"
says parent Ray Torrence.
Parents also agree teachers should not be graded based on student test scores.
Parent Willie Hutto said, "There are children who've been left behind, fallen through the cracks. It's unfair for that
teacher to be blamed."
But on the issue of tenure, parents we talked to are glad to see it go.
"In my job, if I'm not performing well I get fired. I don't get a contract to keep me employed there for 10 years. If you are
not doing the job, bye-bye," added Nikki Taft a mother of two.
Union leaders said putting new teachers on an annual contract violates their collective bargaining rights, a constitutional
right they will fight to keep, even if it means going to court.
"It looks like it's turning into a Tallahassee-run school system," said Pinellas Classroom Teachers Association President
Kim Black. She added the new teacher evaluation plan is unfunded and will put more financial stress on school districts.
Pinellas faces up to an $86 million budget shortfall.
Black said, "On the one hand, they are high five-ing each other for merit pay and these great bonuses to pay teachers as
professionals. Why haven't they been paying teachers as professionals all along? Where is that money coming from?"
School districts will need a teacher evaluation system in place by August. Hillsborough and Pinellas are already working
on one.
Poll: Do you agree with the Student Success Act
http://www.wtsp.com/news/breaking/article/183128/20/Scott-signs-Student-Success-Act-into-law


IOWA
Governor Terry Branstad
Education Blueprint

On October 3, 2011 Governor Terry Branstad and Lt. Gov. Kim Reynolds unveiled their blueprint for transforming Iowas
education system. The blueprint states that Iowa must become more selective and supportive of teachers and principals,
set clear expectations and fair measures for student learning, and nurture innovation in schools to restore the states

56
standing as a leader in education. The new report and reform represents a set of draft recommendations. Among them
are:
Attract and support talented educators with an increase in starting teacher pay, more selective teacher preparation
programs and improved recruiting and hiring practices.
Create educator leadership roles in schools and develop a meaningful peer-based evaluation system that requires
annual and multiple evaluations of all educators.
Develop a four-tier teacher compensation system with Apprentice, Career, Mentor and Master levels and substantial
pay raises for teachers who move up. Add other options for increasing teacher pay, such as work in extended day or year
programs.
Establish a definition of educator effectiveness and tie job protections to an evaluation system based on this
definition.
Free up principals from some managerial tasks to lead and support great teaching.
Improve and expand the Iowa Core to put Iowas standards on par with the highest-performing systems in the world.
Develop an assessment framework that includes measuring whether children start kindergarten ready to learn and
high-stakes End-of-Course assessments for core subjects in high school. Have all Iowa 11
th
graders take a state-funded
college-entrance exam.
Provide value-added measures for all districts, schools, grades and educators that take into account student
background characteristics and consider student growth.
Seek a waiver from the federal No Child Left Behind law and work with key education groups and leaders statewide to
design a new accountability system.
Ensure children learn basic literacy by the end of third grade with high-quality reading programs, supports for schools
and students, and an end to social promotion for third-graders who read poorly.
Nurture innovation with funding for transformative ideas, greater statutory waiver authority for the Iowa Department
of Education and pathways to allow for high-quality charter schools in Iowa.
Create a state clearinghouse of high-quality online courses available to any student in Iowa, and back the courses with
licensed teachers and the best online learning technology available.
Set goals for student outcomes, including a 95 percent high school graduation rate and top statewide performance on
national standardized assessments
17

Iowa Education Summit and Town Hall Meetings
The Branstad-Reynolds administration has set the goal of restoring Iowa schools to best in the nation, and assuring the
States students are globally competitive. In the 1990s, Iowa was a top performer on national tests; however, since
then, it has slipped toward the middle of the rankings with only two other states making less academic progress than
Iowa on those tests in eighth-grade math or fourth-grade reading between 2003 and 2009.

17
Office of the Governor of Iowa Terry Branstad, Branstad-Reynolds administrations blueprint unveils vision for Iowas education
remodel, October 31, 2011, https://governor.iowa.gov/2011/10/branstad-reynolds-administration%E2%80%99s-blueprint-unveils-
vision-for-iowa%E2%80%99s-education-remodel.

57

In July, Governor Branstad and Lt. Governor Reynolds hosted a sold-out, two-day Iowa Education Summit to build a
consensus for how to create world-class schools and a world-class workforce. The Summit focused on the importance of
increasing teacher and principal effectiveness, raising academic standards and putting in place strong matching
assessments and innovation that increases learning. Prior to and following the Summit, the Governor and Lt. Governor,
and other state officials, held town hall meetings and roundtables across Iowa to solicit feedback on improving Iowas
education system.

Governors Science, Technology, Engineering, and Mathematics (STEM) Advisory Council
In July, Gov. Terry Branstad signed Executive Order 74, creating the Governors Science Technology, Engineering and
Mathematics (STEM) Advisory Council. The purpose of the Advisory Council will be advising the governor on ways to
improve STEM education, STEM innovation and STEM careers in the public and private sectors. The goals for the
Governors STEM Advisory Council highlight the crucial connection between giving children a world-class education and
being able to have a world-class workforce.

The Governors STEM Advisory council will consist of no more than 40 members from a variety of sectors including
advanced manufacturing, agribusiness, biotechnology, clean energy, engineering, health care and information
technology; education institutions, both formal and informal; and, appointments from the Legislature and state
agencies. The 2011 Iowa STEM Roadmap, produced by state STEM experts convened by the Iowa Mathematics and
Science Education Partnership, cited a lack of vision and commitment resulting in gaps and redundancies, inefficiency
and inequity. The new advisory council will work to grow Iowas commitment to STEM, establish a vision and maximize
Iowas potential.
Press
Area educators sound off on Branstad education plan
WATERLOO, Iowa --- Area educators said they heard only "sound bites" of information about Gov. Terry Branstad's long-
awaited Education Blueprint in the weeks and months leading up to Monday's release.
The potentially controversial topics --- tying teacher pay to performance and funding --- were always at the forefront of
the conversation. Now, they are ready to start digesting and "drilling down" on some of the finer details.
"Overall, I'm just thrilled we have something to respond to. I wasn't sure what we were going to get, but this is a great
starting point," said Bridgette Wagoner, director of educational services for the Waverly-Shell Rock School District.
Most of the blueprint's proposals are "absolutely research-based" and "are good things to do for kids," said Waterloo
Community Schools Superintendent Gary Norris. "They've been very careful to leave the concepts broad in nature. They
want people to try to absorb it as a package." He noted that the district is already "doing part of" the teacher leadership
components and end-of-course assessments recommended in the blueprint.
Wagoner said the blueprint focuses on three points: teacher quality, high expectations for everyone and innovation.
"If we can get around those three big ideas I think we can move forward very quickly," she said. "We can't let people get
stuck in the details of how their taxes will be raised or if a teacher who is high in the seniority pool going to be at risk for
termination. We will get there eventually, but we just can't start there."
Under Branstad's proposed system, teachers would be classified from apprentice to master teachers and paid in
accordance with their experience and performance. While Norris acknowledged that change is "probably the single most
controversial thing" in the proposal, his understanding is that each school district would have "quite a bit of flexibility."

58
"Each district could more or less operate their own salary structure" within the classifications, he said. "It doesn't mean
the state is going to have a one-size salary schedule fits all." Norris noted that the blueprint includes "quite a laundry
list" of additional options districts would have for increasing teacher pay.
Branstad's proposal also requires students to pass proficiency tests to advance beyond the third grade and demonstrate
competency before graduating from high school.
Norris said the blueprint is indicating the state will move away from the Iowa Tests of Basic Skills in grades three through
eight to assessments being developed by a national consortium. But he is concerned those tests won't be available for
another two years.
"That's probably the one area I would say I don't know if we can wait that long," said Norris. "We have been calling for a
change in the ITBS for a long time. But this does seem to lead us in the right direction."
He praised the move away from the standardized tests for 11th graders to a series of end-of-course assessments. He
noted that the district is providing such tests in a number of courses this year and will have that "in most of our major
courses" next year.
Nadene Davidson, the interim head of the department of teaching in the College of Education at the University of
Northern Iowa, hopes the assessments show that students possess the skills community and business leaders have said
are important for future workers: problem-solving, creativity and collaboration.
She also believes that the plan for system-wide reform needs to include higher education.
"I hope that as we move forward that higher education will be viewed as an equal player and that we will be involved
and engaged in all pieces of the system, not just isolated to the teacher preparation pieces," she said.
The 18-page document does outline several changes to the teacher and administration preparation programs at the
college level. Among the changes are: raising the grade point average to 3.0 for program entry, increasing coursework in
the core content areas, and increasing field experience requirements. Davidson said she can see how some of these
changes would make a positive change, but worries about others.
"I don't want something like GPA to exclude a candidate who might otherwise do well," she said.
Wagoner said her biggest issue with the plan is that the "rhetoric is very much about change and getting rid of the
factory model" yet some of the requirements, like testing all third-graders for reading proficiency, are rooted in that
very system.
"But, for every 'clunk' I can see both sides," she said. "There is nothing in here that is an absolute deal-breaker for me."
18

KANSAS
Governor Sam Brownback
Excel in Education
Education is the most important function of Kansas government. It is to the state government as defense is to the
federal government: its primary function and the lions share of its budget. Our K-12 funding formula is broken as

18
Emily Christensen, Area educators sound off on Brandstad education plan, October 4, 2011,
http://wcfcourier.com/news/local/govt-and-politics/area-educators-sound-off-on-branstad-education-plan/article_5475f663-f72e-
5d18-8f56-cc9a0f42045e.html.

59
evidenced by the endless lawsuits filed against it. Public universities have faced severe cuts. The focus to ensure that
all students and educators Excel in Education will include:
K-12
Focus the states dollars on classroom instruction.
Promote unified accounting of school districts use of state funds and require transparent online spending
reports.
Reform the school finance formula and break the cycle of litigation.
Ensure that students who pass the 4th grade read at grade level.
Promote math and science in order to maintain Kansas leadership in engineering, energy, and bioscience.
Support local economies by creating and expanding accredited apprenticeship and technical programs in high
schools around the State.
Limit professional liability for teachers.
Promote higher pay for master teachers.
Open up Kansas schools to programs that will provide dollars and opportunities to expand the Kansas education
framework.
Promote innovation in education such as virtual learning so that a schools size doesnt limit course offerings.
Additionally, alternative teacher certification programs must be enhanced so that lack of a traditional
educational background doesnt limit highly qualified individuals from teaching.
Higher Education
Stabilize funding so our public universities remain strong to power a robust 21st Century Kansas economy.
Build the biosciences:
Get the National Cancer Institute designation at KUs Cancer Center.
Build the National Bio and Agro Defense Facility at K-State.
Support the Kansas Polymer Research Center at Pitt State.
Encourage the National Institute for Aviation Research at WSU to continue to explore new orthopedic uses for
composite materials.
Work with Fort Hays State and Emporia State to meet our states future demand for international business
leaders and teachers.
Graduate more engineers to future industry needs in our state.
Improve Rankings for KUs School of Medicine, K-States School of Veterinary Medicine, and WSUs aerospace
research and development mission.
Promote innovative programs at our States community colleges to meet future industry needs. Kansas
community and technical colleges are positioned to be, and should be, our first responders to emerging
workforce needs.
Press
Brownback tells Kansas Regents to improve higher education but not to expect extra funding

60
Gov. Sam Brownback on Wednesday told higher education officials that they must improve the academic rankings of
Kansas universities and that he has no problem with raising admission standards at the schools.
But the Republican governor also told the Kansas Board of Regents not to expect much extra funding for higher
education. He warned of tight budget times ahead because of pressures to cut the federal budget.
Our revenues are starting to come back as a state, but they are not coming back as fast as we are losing federal
monies, he said.
He said Kansas schools need to focus on core strengths and that may mean that some less-used degree programs should
be disbanded.
Brownbacks comments came during a wide-ranging discussion with the regents, which completed its three-day retreat.
Regent Robba Moran of Hays said she agreed with Brownbacks position. The more specific and targeted we are, totally
makes sense, she said.
Brownback said the regents should set goals for the higher education system, measure them and implement
consequences if the marks arent met.
He cited the U.S. News & World Report ranking of Kansas University, Kansas State University and other regents schools,
and said improvement must be made. In the 2010 report, KU ranked 47th among national public universities and K-
State, 66th.
We have got to do better than that, Brownback said. He said improving the quality of the higher education is key to
reversing negative economic trends.
You have probably the best asset pool we have to change these numbers, he told the regents.
Since a sizable portion of the academic rankings deals with admission standards, Brownback said he would support
individual universities tightening standards as long as Kansas high school graduates still had the opportunity to attend a
regents school.
Brownback also said he wants to increase emphasis on technical training in high schools and colleges, saying that most
future jobs will require some kind of technical skill.
Regent Dan Lykins of Topeka noted that for the first time in history, tuition is making up more of funding higher
education than state appropriations. He asked Brownback if that will continue.
Brownback answered, Its going to be very competitive for state dollars for some time.
19




19
Scott Rothschild, Brownback tells Kansas Regents to improve higher education but not to expect extra funding, August 17, 2011,
http://www2.ljworld.com/news/2011/aug/17/brownback-tells-kansas-regents-improve-higher-educ/?kansas_legislature.

61
PENNSYLVANIA
Governor Tom Corbett
Education Reform
Opportunity Scholarships:

Opportunity scholarships will provide a choice in education and will rescue children from failing schools. Its also an
efficient use of taxpayer dollars by targeting funding toward the student, where it will have the greatest impact, rather
than providing more money to institutions that have consistently produced poor academic results.

Students deserve access to educational opportunities that work for them and their learning needs. Pennsylvania has
many great schools, but not every school works for every child.

Some students are consigned to failure because of their ZIP codes, Corbett said. They live in the shadow of failing
public schools they must attend because their families lack the resources or ability to enroll them elsewhere...
Opportunity scholarships provide additional choices for Pennsylvania students.

The governors plan includes:

An Opportunity Scholarship Program, which would provide tuition assistance for eligible students to attend a
public or non-public school of their choice.

Eligibility for scholarships would be based on income and residence within the attendance zones of the lowest-
performing 5 percent of schools across the state.

By focusing on the worst-performing schools and children in the most at-risk situations, this proposal sends tax
dollars to where they can have the greatest impact.

The proposal ensures accountability by requiring opportunity scholarship recipients to take an assessment to
measure academic achievement. The Department of Education will administer the program, including verifying
student eligibility and processing of payments.

Should a child leave their school district to attend another school, the state dollars will follow the child.

The Educational Improvement Tax Credit:

For more than a decade, the Educational Improvement Tax Credit, or EITC, has proven to be a successful partnership
with businesses, schools and students helping to give families a choice in their childs education.

The program provides tax credits to businesses that provide funding for scholarships and other educational
improvement organizations, as well as academic programs and other benefits to students in all schools, from all socio-
economic backgrounds, to pursue educational goals and advanced learning opportunities.

Specifically, the plan calls for:

An increase to the EITC to provide greater educational opportunities to eligible students from low- and middle-
income families beyond the nearly 40,000 students served each year.

The increased EITC will also provide additional funding to educational improvement organizations that can
potentially provide benefits to all schools.


62
Program reforms will be proposed along with the increased tax credit.

Charter Schools:

Many quality charter schools have also proven to be a successful educational alternative for the children of Pennsylvania
for more than a decade. They offer greater flexibility than traditional public schools, which are often limited by statutory
and regulatory requirements.

Specifically, this legislation will:

Establish a statewide authorization entity to approve, license or and oversee charter schools.

Make it easier to convert buildings to charter schools.

Improve the current payment mechanism of charter schools.

Increase accountability provisions on charter schools to require academic performance and it will require
charter school officials to comply with the states ethics and financial responsibility laws.

Educator Evaluations:

The biggest flaws of the current teacher evaluation system are that it covers only two extreme ends of the teacher
performance by offering satisfactory and unsatisfactory ratings, providing no useful feedback to allow educators to
modify their practices to benefit students.

The most recent reports for the 2009/2010 school year evaluations indicate that 99.4 percent of teachers and 99.2
percent of principals across the state were rated as satisfactory.

It is difficult to understand how nearly 100 percent of teachers and administrators are rated as performing well, Corbett
noted, yet the results of the 2011 PSSA show 26 percent of students are performing at or below the basic level in
reading, and 23 percent are performing at or below the basic level in math.

Pennsylvania needs a comprehensive method to provide a fair, credible and accurate measure of educators, Corbett
said, rather than a rubber stamp that allows teachers and administrators to remain in their positions with little true
evaluation of effectiveness.

Recognizing this problem, the state Department of Education has received private grant funds to start a voluntary pilot
program to improve Pennsylvanias teacher evaluation tools.

One hundred education entities have already signed up for the voluntary pilot program, including 82 school districts, 10
Career and Technical Centers and 8 Charter Schools.
Specifically, our proposed legislation will build off this pilot program to implement a new statewide method to evaluate
teachers, including:

A new, reliable rating system will be developed to focus on student performance along with traditional
observation of classroom practices. Such a system should be the basis for decisions involving merit pay as well as
tenure, retention or dismissal of staff.

Separate rating systems will be developed for teachers, principals and education specialists that will include
different measurements and observation tools to help develop a final evaluation for each of them.

63

Once all factors are considered, employees will be evaluated as distinguished, proficient, needs
improvement, or failing.

The new rating system will provide educators with targeted resources, support and feedback so they can
improve their instruction and subsequently, student achievement.


Press

Governor Corbett Outlines Agenda for Education Reform in York County
By Jim Hamill
Governor Tom Corbett Tuesday outlined his plans for education reform.
It includes changes to the way teachers are evaluated and "opportunity scholarships" so students could attend the
public or private school of their choice.
Corbett announced the details of his proposed education overhaul at a charter school in York.
He said changes are needed to foster competition in schools and improve academic achievement.
"The question we should be asking ourselves today is how are we going to train the workforce of the 21st century with
all the challenges we have. How different it is now from when those of us who are adults here went to school?" Corbett
said.
Other parts of the governor's proposal include a commission to oversee charter schools across the state and expand tax
credits for businesses that fund scholarships.
Governor Corbett considers his plans for education rearranging priorities.
When it comes to education, however, some school officials, and even parents, said Tuesday they are not very keen on
more government involvement.
On the heels of a state budget that cut money to public schools like Montoursville Area, Superintendent Dominic
Cavallaro said he is skeptical the governor's latest plans would go very far to improve education in Pennsylvania.
Cavallaro said school vouchers would be a mere bandaid for most public schools and a misuse of taxpayer money if
vouchers were used at private schools.
"I think if you want to go to private schools or cyber school, I think you ought to pay," Cavallaro said.
At the West Branch School, an independent kindergarten-through-six school in Williamsport, the vouchers could do
some good, according to teachers there who said enrollment has dropped recently, and in tight economic times, it's
tough for families to pay to send their kids there.
"The more opportunities families have to match their child's learning style and particular situation the better," said
Steve Hulslander of West Branch School.
Melissa Welch has one child in public school and another at the West Branch School and backs the governor's call for
vouchers and tax credits for scholarships.

64
When it comes to more scrutiny of teachers and their performance, Welch and other officials are not in favor of basing
that on test results alone.
"To a certain extent you can only teach to the test so much. Teachers are held to so many standards, at some point we
have to let the teachers teach," Welch said.
"It's up to us to do our own weeding out of poor teachers," Cavallaro added.
The state teachers' union released a statement in reaction to the governor's proposal saying, "The $860 million in state
funding cuts have forced the public schools to increase class sizes and cut programs. We need to restore those cuts, not
spend more money on initiatives that don't work."
The governor's proposed education reforms will need lawmakers' support before they can go into effect.
20



MISSISSIPPI
Governor Haley Barbour
Improving Education Haleys Plan
The Legislature overwhelmingly approved the proposals first set out in "Haley's Plan" and refined through a
collaborative, participatory process which included more than 250 classroom teachers to focus on the
fundamentals of improving student achievement. The result was the "UpGrade" Education reform package.
The Legislature approved Haley's Plan to encourage innovation at the local level by granting "Home Rule" to all
districts and liberating successful schools from State Department of Education paperwork.
The Legislature approved most of Haley's Plan to recruit and retain teachers by allowing automatic certification
of any teacher meeting federal No Child Left Behind "highly qualified teacher" definition; authorizing a plan to
pay teachers based on performance; authorizing higher pay for teachers in hard to staff subjects and districts;
and expanding alternative certification programs.
The Legislature approved part of Haley's Plan to UpGrade school discipline by authorizing financial rewards for
teachers who serve as mentors to other middle school teachers.
The Legislature approved Haley's Plan to redesign high schools by creating the Mississippi Virtual Public school;
expanding dual credit and dual enrollment programs; and requiring access to AP courses.
The Legislature approved the plan to UpGrade how Mississippi uses its resources by making the education
budget process more uniform and transparent so taxpayers can see how education dollars are spent and by
authorizing the privatization of certain school budget functions.

To improve early childhood education, Governor Barbour directed the Mississippi Department of Human
Services to implement a "quality rating system" that incents private childcare providers to provide educational
content in their programs.
In addition, Governor Barbour supported and the legislature:

20
Janet Kelley and Amber Miller, Governor Corbett Outlines Agenda for Education Reform in York County, October 11, 2011,
http://www.fox43.com/news/wpmt-corbett-outlines-education-reform,0,1130767.story.

65
Fully funded an 8% pay raise for teachers
Passed Teacher Pay for Performance legislation, a Mississippi Department of Education (MDE)
developed a system, although it has never been funded;
Established an Office of Dropout Prevention at MDE
Supported and championed funding for MDEs High School Redesign, which charged high schools with
preparing students for the job market using job clusters to create courses and pathways for kids to
obtain skill sets-- in addition to diplomas. This program called for a five-year phase-in; unfortunately,
funding has ceased during recession.
In the same vein as High School Redesign, Mississippi established a career-technical pathway to a
standard diploma-Multiple pathways to high school graduation- coupled with dual-enrollment, dual-
credit provisions
Supported the passage of the Childrens First Act which dded accountability to K-12 districts. If districts
are labeled failing for two consecutive years, Superintendents and boards may be removed and the
State Board of Education takes over
Established a commission to study consolidated purchasing and back-office operations for K-12.
Supported full funding for National Board Certified Teachers
Established the Mississippi Healthy Students Act providing for weekly amounts of exercise and health
instruction for elementary school children and requires unit in physical education for graduation
Codified the State Longitudinal Data System- from birth to workforce. This data system is being
implemented at this time.
Set a focus on Mississippi's unacceptably high dropout rate by creating an Associate State
Superintendent level position for dropout prevention.
For higher education,
Established a task force to look at graduation rates. As a result, after one year, it was codified for the
Mississippi Education Achievement Council to work on recommendations to increase the number of
graduates from Mississippis community colleges and institutions of higher learning.
Passed legislation connecting funding to productivity goals along with enrollment
Directed the Achievement Council to research funding and productivity and required a report to be
submitted with recommendations to the legislature.


MISSISSIPPI
Governor Haley Barbour
Workforce Development

Mississippis workforce is the cornerstone of our successful efforts to create new and better-paying
jobs. As long as Im governor I want to make sure our education, training, and employment service
resources are helping improve the pool of talent so that Mississippi can grow and prosper in todays
knowledge-based, global economy.
21


Workforce development has been a cornerstone of Governor Haley Barbours policy agenda since he ran for Governor in
2003. As a candidate, Governor Barbour ran on the platform of creating more and better jobs for Mississippians and
repeatedly said Mississippi must reform its job training systems. Then-candidate Barbour recognized that Mississippi
had not made job training a top priority, resulting in some $43 million in federal job training money being left on the
table. Prior to Governor Barbours election, funding for community colleges (the principal workforce development
institutions) had been slashed some 23 percent less than the previous four years. This fragmented approach to
workforce training had dampened the states ability to attract the businesses and industry that create jobs for our
citizens and revenue for our state.


21
Haley Barbour, State Workforce Investment Board, http://www.swib.ms.gov/.

66
According to the Mississippi Business Journal, Business leaders consider the Mississippi
Comprehensive Workforce Training and Education Consolidation Act of 2004 the centerpiece of
business legislation passed during the regular session, which will streamline and improve the states
workforce delivery system.
22


When Governor Barbour was elected, he immediately began working to reform the states workforce system. In 2004,
he proposed and the Legislature adopted the largest overhaul of workforce training efforts in the states history. The
Mississippi Comprehensive Workforce Training and Education Consolidation Act of 2004 merged the State Workforce
Development Council, which oversaw state workforce dollars, with the State Workforce Investment Board, which
oversaw federal workforce dollars. The new State Workforce Investment Board now coordinates both state and federal
workforce funds. Our goal in Mississippi is to use WIA and the State Workforce Board to align our resources in one
system to provide employers with well-trained workers and individuals with the opportunities to get their first job, their
next job, or a better job.
23


This board is charged with breathing new life into our worker training efforts.
24


The State Workforce Investment Board has articulated a clear and focused mission statement: develop and
implement a strategy to maximize the state's education, training, and employment service resources in support
of economic development.

SWIB plays a key role with Momentum Mississippi, a group of 100 business leaders working to improve
Mississippi's economy and business climate. In consultation with this group, SWIB adopted six broad goals:

1. Install an accountability system to track systemwide results and funding.
2. Consolidate workforce training efforts and reduce redundancy and administration.
3. Involve businesses in defining training needs.
4. Provide a user-friendly system for all customers.
5. Develop a clearly defined implementation plan.
6. Fully leverage the community college workforce training system.

The State Workforce Investment Board has accomplished many of these goals, effectively using its committee
system that consists of an executive board and several standing committees.
25


Part of the reform of Mississippis workforce system includes a performance measurement and accountability system to
track how dollars are spent along with the results of program investments. Mississippi State Workforce Investment
Board Chairman Larry Otis comments, Many of our education and workforce sectors are sharing information through
the Statewide Longitudinal Data System and are working together to instill a culture that supports data-driven
decisions.
26



22
Lynne Jeter, Business Anticipating Training Changes, May 24, 2011, http://msbusiness.com/2004/05/business-anticipating-
training-changes/.
23
Haley Barbour, State Workforce Investment Board, http://www.swib.ms.gov/.
Rod Boshart, State works to reshape economic development effort, October 11, 2011,
http://easterniowagovernment.com/2011/10/06/state-works-to-reshape-economic-development-efforts/. Emily Christensen, Area
educators sound off on Brandstad education plan, October 4, 2011, http://wcfcourier.com/news/local/govt-and-politics/area-
educators-sound-off-on-branstad-education-plan/article_5475f663-f72e-5d18-8f56-cc9a0f42045e.html.. 2004. Annual Report.
Mississippi Department of Employment Security.
24
Jones, Joe D. 28 February 2005. Moving workforce training to forefront. Mississippi Business Journal. Retrieved from the World
Wide Web: http://msbusiness.com/2005/02/moving-workforce-training-to-forefront/
25
State Workforce Investment Board, "SWIB Mission," http://swib.ms.gov/about/mission/.
26
Larry Otis, "Workforce Investment Network in Mississippi ," Annual Report (2010).

67
The State Workforce Investment Board has worked closely with Momentum Mississippi, the Mississippi Manufacturers
Association, and the Mississippi chapter of the National Federation of Independent Businesses, the Mississippi Economic
Council and the Mississippi Development Authority to tailor workforce training programs to meet business demand. As
a result, many new companies, including Severstal Columbus (formerly known as SeverCorr) and Toyota Motor
Manufacturing have decided to locate businesses in Mississippi, citing as one of their main reasons the quality of
workforce training.

This legislation further streamlined workforce development programs by transferring the programs of the Mississippi
Employment Security Commission to the executive branch of government as part of the Department of Employment
Security, allowing greater coordination and utilization of funds for workforce training and development programs.

The new Mississippi Department of Employment Security consolidated many of its workforce programs. The Workforce
Investment Network Job Centers (WIN Job Centers) that exist across the state to provide one-stop easy access to job
seekers and employers are now organized under one manager who oversees the entire range of workforce services and
unemployment determinations and benefits. This consolidation of services places the focus on employment and faster
reemployment for dislocated workers. MDES also consolidated its management structure to ensure seamless services.
The U.S. Department of Labor cites Mississippi as having the most fully integrated workforce systems of any state.

Using feedback from the State Workforce Investment Board and customer satisfaction surveys, MDES has modernized
and revamped many of its local offices to make them more attractive and user-friendly. It has established a call center
so that individuals can find out about job opportunities and file unemployment insurance claims by telephone. In
addition, the MDES Mobile WIN Job Center units are often deployed to make computers available to people in a variety
of locations and to function as local offices or outreach locations for Rapid Response activities. The state workforce
system understands its primary goal of increasing employment in Mississippi, supporting the creation of new job
opportunities through workforce training, and working with existing businesses to provide training to their employees in
response to changing technologies or processes.

The Mississippi Department of Employment Security executive director has met with numerous leaders including
community college presidents, business representatives, economic and workforce development professionals, labor
representatives and executives from other state agencies and private foundations to forge collaborative partnerships
that better serve all citizens of the state. Collaborating with community colleges and local workforce directors, the
Career Readiness Certificate program a portable, evidence-based credential that measures essential workplace skills
and is a reliable predictor of workplace success was implemented. Success is measured in four levels: bronze, silver,
gold, and platinum. In partnership with the states network of community colleges, MDES has issued 23,632 career
readiness certificates.

Under Governor Barbours leadership, the states workforce training budget was doubled over two years and a new,
stable funding source known as the Workforce Enhancement Training Fund which provides about $20 million a
year for skills training at community colleges was created. Unemployment taxes were cut by 25 percent, and the
reorganized Department of Employment Security placed 35 percent more workers in jobs than the previous year.

Workforce development is more than a talking point in the Barbour Administration. The Governor has promoted skills
training throughout his term, including the 2005 Momentum Mississippi initiative that was designed to develop and
oversee the states long-range economic development plan. Governor Barbour believed that economic development
cannot happen without a strong focus on workforce issues, and that approach has worked: Toyota, PACCAR, and
General Electric Aviation are just a few of the world-class companies that have located in Mississippi during the
Governors term, creating thousands of jobs for Mississippi workers.

Momentum WIRED Workforce Innovation in Regional Economic Development a federally funded grant program
designed to address workforce needs for advanced manufacturing industries located in 18 counties in southeast
Mississippi began in 2009. The $5 million grant initially was awarded to Mississippi in 2007 with a goal of helping

68
Mississippi workers attain skills that are more advanced in order to fill the shortage of metal and construction workers in
the region.

This led Mississippi into working together as a region, thus sector strategies was born. The purpose of the State Sector
Strategy Team is to strategically promote Sector initiatives that help meet the skill, recruitment, and retention needs of
employers and the training, employment, and career advancement needs of workers. By meeting the needs of regional
industry on behalf of a regions jobseekers and workers, sector initiatives strengthen a regions overall economic vitality.
Sector initiatives address the needs of employers by focusing intensively on the workforce needs of a specific industry
sector; Address the needs of workers by creating formal career paths to good jobs, engage a broader array of key
stakeholders through partnerships; and Promote systemic change that achieves ongoing benefits for the industry,
workers, and community. Mississippi has a more than 20-member team made up of businesses, industries, community
colleges and state agencies. This group meets quarterly to discuss strategies and structure that promotes and supports
the development of sector initiatives in industries such as health care, manufacturing and aerospace, to name a few.

Governor Barbour has pushed for workforce innovation, creating a nationally recognized subsidized employment
program known as Mississippi STEPS Subsidized Transition Employment Program and Services. This program leveraged
resources from the Department of Human Services with the Department of Employment Security and created more than
3,200 jobs for some of Mississippis lowest income citizens. The purpose of Mississippi STEPS was to encourage
Mississippi employers to begin hiring new workers, and to take advantage of one-time federal dollars available to
Mississippi. And, although most businesses were eligible to participate, emphasis is on employers with 25 or fewer full-
time employees. The goals of Mississippi STEPS were to increase employment in Mississippi, provide an incentive to
employers to hire workers, and assist dislocated workers returning to the workforce. Employers eligible for the program
were Mississippi based, offered a permanent job (or jobs), had Workers Compensation coverage for workers or were
self-insured, and had an accounting system in place. Potential employees were a member of a family (not single), had a
child less than 18 years of age, and met the 250% Poverty Guideline. National outlets including The New York Times and
National Public Radio have covered the uniqueness of this Mississippi program.

We have seen a huge amount of interest from Mississippi employers who would like to grow their
business but are limited during this economic downturn, Governor Haley Barbour said. By creating
innovative programs like Summer STEPS and STEPS New Start, we can address all types of needs our
small businesses have and help keep Mississippians working.
27


Three additional STEPS programs emerged after the initial program ended: Summer STEPS, STEPS New Start, and
Mississippi STEPS 2. Summer STEPS funded jobs for youth ages 18 to 24. Wages were 100 percent subsidized for youth
working 32 to 40 hours per week and earning $8 an hour. Qualifying participants were able to transition to the original
STEPS program upon completion of Summer STEPS. Young workers must have been or had dependent in families with a
household income within 250 percent of the federal poverty line. STEPS New Start aided entrepreneurs in opening their
new companies. Qualified participants were eligible to receive a grant of up to $5,000 to start a business. Priority
consideration was given to applicants who are prepared to open within 60 days of their application. Eligible
entrepreneurs must have had at least one child under the age of 18 and earn within 250 percent of the federal poverty
line. Mississippi STEPS 2 was the relaunch of the original program. STEPS 2 started in August 2011 to sign up employers
and employees to be paid through the end of 2011.

Mississippi invests more on-the-job training money than most other states and annually performs in the top five of all
states in providing federal on-the-job training dollars to train and employ workers.


27
"Governor Barbour Expands Jobs Program to Fund Summer Job, Entrepreneurs," June 1, 2011,
http://www.governorbarbour.com/news/2010/jun/6.1.10govbarbourexpandssteps.html.

69
Hurricane Katrina of the 2005 Atlantic hurricane season was the costliest natural disaster, as well as
one of the five deadliest hurricanes, in the history of the United States.
28


The Mississippi Department of Employment Security and the State Workforce Investment Board has Governor Barbour
in the recovery, rebuilding, and the renewal of Mississippis Gulf Coast. New workforce partnerships were forged, and
existing partnerships were strengthened.

Mississippis Unemployment Trust Fund is solvent. The U.S. Treasury has the responsibility to safeguard and invest the
taxes that are collected and deposited by the state. The funds are invested primarily in government securities. Interest
earned on the trust fund is deposited back into the fund. The taxes collected through state efforts as well as money
earned on the deposits in the trust fund are restricted in use. They are designated exclusively for payment of state
unemployment benefits. Many states have bankrupt their unemployment trust funds due to setting their tax rates too
low and/or raising their benefits too high.

Governor Barbours vision and leadership are the catalyst for improved workforce development services in Mississippi
and have ensured the delivery of quality and successful services in the future.


OKLAHOMA
Governor Mary Fallin
Senate Bill 346-Ending Social Promotion

Senate Bill 346 specifies that starting with students entering first grade in the 2011-2012 school year, the program of
reading instruction must include provisions of the READ Initiative adopted by the school district, as instructed in the
measure.

Starting with students entering the first grade in the 2011-12 school year, if a reading deficiency is not remedied by the
end of third grade, as demonstrated by scoring at the limited knowledge level on annual assessments, the student must
be retained in third grade.

Districts must notify parents their child has a reading deficiency, services provided and that the student will be retained
if the deficiency isnt remedied.

Administrators may promote students for good cause such as limited English proficient students and students with
disabilities. Students may be promoted if they perform at a certain level on alternative assessments or if they
demonstrate mastery through a student portfolio. Students also may be promoted if they receive intensive remediation
in reading for two or more years but still demonstrate a deficiency and were previously retained in kindergarten, first
grade, second grade or third grade for a total of two years. Those students must have an altered instructional day that
includes reading instruction specific to their needs.

Students not promoted must receive intensive reading instruction including methods such as tutoring or mentoring, an
extended school day or week or year, summer reading camps or reduced teacher-student ratios.

Districts must have a policy for midyear promotion of students if necessary.

Districts must establish a Reading Enhancement and Acceleration Development Initiative to prevent the retention of
third grade students and to offer intensive accelerated reading instruction to third grade students who failed to meet

28
Knabb, Richard D; Rhome, Jamie R.; Brown, Daniel P. 20 December 2005; updated 10 August 2006. Tropical Cyclone Report:
Hurricane Katrina: 2330 August 2005 (PDF). National Hurricane Center.

70
standards for promotion and to each kindergarten through third grade student who is assessed as having a reading
deficiency.
29



Press
Gov. Fallin signs education reform bills in to law
OKLAHOMA CITY - Gov. Mary Fallin signed two education reform measures into law Wednesday.

Senate Bill 346 ends "social promotion" for students after the third grade.

It requires third-graders to be proficient in reading before moving on to the fourth grade.

House Bill 1456 sets a grading system for schools based on an A to F scale.

"It is a very exciting day for Oklahoma, a very exciting day for Oklahoma school children and an exciting day for
improving education in the state of Oklahoma," Fallin said at a bill-signing ceremony in the governor's large conference
room.

HB 1456 will increase accountability in education and empower parents, Fallin said.

"With that system in place, parents will now have the ability to quickly and easily be able to evaluate the quality of
education that our children are receiving," she said.

"I believe it will also encourage teachers and our administrators to continue to improve the education system and
actually hold them accountable when they do not."

State Superintendent Janet Barresi said the measure will increase parent participation and community support in
schools.

"This gives parents an opportunity to actually know what is going on in their child's school," said Rep. Lee Denney, R-
Cushing, the House author of HB 1456. "It is hard to understand what needs improvement or failing means, but when
we say you are in an A school, you are in a B school, parents know what that means."

SB 346 raises the bar by phasing out social promotion, Fallin said.

"If our children are not able to read at grade appropriate level, they can't learn the math, the science, the social studies
as they continue to go through the education system," she said.

The state does a great disservice to children, parents and the work force when children are passed from grade to grade
without grade-appropriate reading skills, Fallin said.

Barresi said: "Folks, it is about literacy. If a child can't read, they can't learn."

She said the bills aren't a cure-all for education but are a part of the overall answer.

Previous education measures signed by Fallin include HB 2139, which removed the state Board of Education's power
over the Oklahoma State Department of Education.


29
Oklahoma State Legislature , Bill Information for SB 346 , http://www.oklegislature.gov/BillInfo.aspx?Bill=sb346.

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She also signed HB 1380, which eliminates a teacher's right to appeal a firing in district court, a process called "trial de
novo."
30



VIRGINIA
Governor Bob McDonnell
Higher Education Commission

Governor McDonnell's Commission on Higher Education Reform, Innovation and Investment will work to establish a
long-term policy of reform, innovation and investment that will ensure instructional excellence, create affordable
pathways to college degree attainment for many thousands more Virginians, prepare our citizens for employment in the
high-income, high-demand fields of the new economy, foster socio-economically important research and development,
and ensure affordable access to appropriate post-secondary education, training, and re-training for all Virginians.
The priorities of the commission are:
Preserving and enhancing the instructional excellence of Virginia's leading universities and of the higher
education system as a whole;
Increasing significantly the percentage of college-age Virginians enrolling in institutions of higher education and
attaining degrees;
Attracting and preparing young people for the STEM (science, technology, engineering, and math) areas and
other disciplines (e.g., healthcare and advanced manufacturing) where skill shortages now exist and/or unmet
demand is anticipated;
Forging new effective public-private partnerships and regional strategies for business recruitment, workforce
preparation, and university-based research;
Making Virginia a national leader in providing higher education opportunities to military personnel and veterans;
Crafting a sustainable higher education funding model that will systematically move Virginia toward higher levels
of educational attainment and economic competitiveness over the next decade-and-a-half;
Developing innovative ways to deliver quality instruction, cost-saving reform strategies, and affordable new
pathways to degree attainment for capable and motivated Virginians regardless of income or background;
Evaluating strategies to reduce costs through additional college placement testing and accelerated degree
completion; and
Creating effective workforce development programs through expanded use of the Community College System in
coordination with the Commission on Economic Development and Job Creation.
31


Governors Commission on Higher Education Reform, Innovation, and Investment:
http://www.governor.virginia.gov/Issues/ExecutiveOrders/pdf/EO_9.pdf


NEW MEXICO
Governor Susan Martinez
Kids First, New Mexico Wins

Governor Susana Martinezs Education Reform Agenda includes fiscal discipline, increased accountability, aid to
struggling schools and students, and reward for effective educators.

30
Barbara Hoberock, "Gov. Fallin Signs Education Reform Bills in to Law," Tulsa World , May 5, 2011,
http://www.tulsaworld.com/news/article.aspx?subjectid=11&articleid=20110505_16_A1_ULNSka865612.
31
Office of the Secretary of Education Laura Fornash , "Higher Education Commission - Mission and Priorities," Virginia.gov,
http://www.education.virginia.gov/initiatives/HigherEducation/MissionAndPriorities.cfm.

72

Kids First, New Mexico Wins Plan:
A Smarter Return on New Mexicos Investment: An initiative to prioritize classroom spending over bureaucracy
and return fiscal discipline to our Department and to local school districts. The needs of students must drive
education policy and spending.

Real Accountability. Real Results.: To provide maximum transparency when it comes to the quality of our
schools, this initiative creates an easy to understand A, B, C, D, F school grading system. Real accountability in
our schools will recognize and reward progress, reverse failure and help struggling schools and students.

New Mexicos Ready for Success Initiative: To prepare students to succeed throughout their academic
careers, this initiative ends social promotion the practice of passing children from one grade to the next before
they have mastered the basics in the gateway years of 3rd, 5th and 8th grades. A command-focus on reading
and literacy initiatives will ensure all students have the foundation for success in school and life.

Rewarding Effective Educators and Leaders: To ensure all students have access to great teachers, this initiative
will create a blueprint for evaluating, rewarding and incentivizing effective teaching and leadership in our
schools and districts.

Governor Martinez has made improving education in New Mexico a chief priority and is committed to ensuring every
student has access to quality schools and teachers.
http://www.kvia.com/news/26533512/detail.html

http://www.ped.state.nm.us/press/2011/Bipartisan%20Support%20Lined%20Up%20for%20Bill%20to%20End%20Social
%20Promotion-2.pdf

Press
New Mexico Gov. Susana Martinez: We 'are not under-taxed; the government has simply over-spent'
32


Like fellow Republican governor Nikki Haley of South Carolina, New Mexico's new governor, Susana Martinez, is her
state's first female chief executive. She is also the nation's first Latina governor, as Haley is the first woman governor in
the United States of Indian descent.
But Martinez is not new to public service, having been a prosecutor for nearly a quarter-century. Her full biography is
here. Her husband, Chuck Franco, has also had a long career in law enforcement. See the couple's photo below greeting
a little girl.
Last week with Alaska Gov. Sean Parnell's State of the State address, we heard of the strong economy in the country's
largest state geographically. (For links to all of the state of the state addresses published on Top of the Ticket so far,
please scroll to the bottom.)
With New Mexico, however, we return to the familiar 2011 governmental theme of deficits and the need to cut
spending. Martinez hits that theme strongly, imposing several major changes from policies of her predecessor,
Democrat Bill Richardson.
She has ordered the state jet sold, cut expenses at the governor's residence by 55%, including letting go the two
personal chefs who had been working there, cut her cabinet members' salaries by 10% and frozen all new vehicle
purchases, except for law enforcement, among other stringencies.

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"New Mexico Gov. Susana Martinez: We 'are not Under-taxed; the Government has Simply Over-spent'," Los Angeles Times,
January 24, 2011, http://latimesblogs.latimes.com/washington/2011/01/susana-martinez-new-mexico-state-of-the-state-text.html.

73
Martinez even suggested her husband would have to do some of the cooking. (Be sure to read Indiana Gov. Mitch
Daniels' remarks below on his state living within its means, as its citizens do.)
Martinez is also driving a theme heard from many governors, that their state is open for business with numerous
proposed changes in regulatory red tape and tax incentives to attract large but also especially smaller businesses, which
create a majority of the nation's new jobs. Of likely interest to Hollywood is Martinez's reduction in New Mexico's film
incentives. She also vowed to veto any state tax increases passed by the Legislature.
One especially intriguing development to watch in coming months is how effective this new infusion of political blood is
in numerous offices of the governor, which have become the proving grounds for national leaders. The open 2008
presidential election was an anomaly, pitting two legislators (both U.S. senators) against one another. Only three sitting
senators have ever become U.S. president. In recent American history voters have shown a strong inclination to elect
executives as the chief executive; four of the last six presidents were governors and the fifth was a sitting vice president.

ARIZONA
Governor Jan Brewer
Education Reform Plan

Employers need a skilled workforce, and employees want a good school system for their children. Achieving a strong
economy for Arizonas second century requires that action is taken now to strengthen our education system. While that
assertion echoes the statements and sentiments of many other Arizona governors, recent achievements and other
changes in circumstance cast it in a somewhat different light.

Education Reform Plan. For the first time in Arizonas history, this is education reform plan that reaches every student,
in every classroom from pre-school to college in every part of Arizona, en route to a future in which all Arizona
students are prepared to succeed in college and careers and to lead this state in the next 100 years and beyond.

Plan Development and Goals. Under my direction, Arizonas new education plan was developed during the last year by
the P-20 Education Council, with statewide input and support from educators, business leaders and community
organizations, in conjunction with State policy makers. It is a sound plan with yearly benchmarks that will put us on the
path to achieve specific goals by 2020, including:
improving our high school graduation rate to 93%, from a starting point of 75%;
enabling at least 94% of third graders to meet State reading standards, in contrast to our baseline of just 69%;
and
Doubling the number of college students who complete their studies and receive a four-year degree.

Reform Plan Implementation. Arizonas education reform plan is by no means gathering dust on the shelf; we
are taking action now.
In 2009, Arizona became the first state to abolish teacher tenure laws so that schools would keep their best
teachers based on achievement, not seniority.
In 2010, the State Board of Education adopted, with my support, internationally competitive academic standards
to take effect in the 2013-2014 school year.
Arizona is one of 11 governing members in a consortium of 26 states to develop new tests to replace the AIMS
test based on our new standards starting in 2013.
The new labeling system for schools the A through F legislation passed last year will be implemented for
schools and school districts.
To help school districts reward performance, new teacher and principal evaluation systems are being developed
based on legislation passed in 2010.


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Data System Replacement. The States education data system is unreliable and out-of-date. To reward our best teachers
and best principals, to ensure that resources follow success, and to reward schools and colleges for graduating students
instead of just enrolling them, Arizona needs a data system that accurately reports the performance of students,
teachers and schools. The Executive Budget Recommendation for FY 2012 includes a plan to fund this system and
oversee its development.

Enhancing the Role of Parents. There is no denying that active involvement of parents is one of the keystones of
childrens academic success. Better information from the new data system will allow for better decision-making by
parents seeking safe and effective learning environments for their childrens academic growth.

Arizona leads the nation in school choice, and during the next four years it will enhance parents rights to enroll their
child in a district school, charter school, private school or home school. In the near future, I will announce further tools
to assist parents in making more informed choices regarding their childrens education.

Repurposing the P-20 Education Council. The existing P-20 Education Council has served Arizona well in coordinating
our various education systems. But the new, overhauled P-20 Council will be dedicated to driving results and increasing
transparency, while respecting local control. The new P20 Council will be comprised of top leaders of Arizonas various
public education agencies along with business and civic leaders.

Recognizing the business axiom What gets measured gets done, the Council will meet semi-annually to measure and
track progress of established performance goals and outcome expectations for preschools, K12 schools, community
colleges and universities.

Higher Education Reform. Our colleges and universities serve as a key asset to State economic development and as a
gateway for individual economic and social improvement. Higher education has taken its share of cuts during this
economic downturn, despite significant increases in enrollment. As a result, the university presidents and regents are
already realigning operations.
When it comes to higher education funding, the choices are difficult. It is important to discern between worthy and
unworthy options and reject the latter. Most notably, in higher education the prevailing cost structure is not sustainable
and needs to be rebuilt.

There must be more options than simply raising tuition or eliminating programs. The state must continue to put forth
efforts that allow the universities to be strong, focused enterprises with more graduates with higher skills, more choices
in ways to learn, less dependency on buildings and less bureaucracy.

While these goals are ambitious, they are attainable. To that end, the State must continue to explore lower-cost higher
education models, including expansion of Two-Plus-Two programs, more regional campuses with differentiated tuition
options, online education, a State College system, and fouryear degrees offered by com-munity colleges.


PUERTO RICO
Governor Luis Fortuno
Better Access to Education in Puerto Rico

Schools for the 21
st
Century Puerto Ricos school modernization program

The Fortuo Administration has launched the Schools for the 21
st
Century Initiative, a comprehensive, Island-wide
school modernization program to transform Puerto Ricos public schools to benefit students, parents, educators and
communities. The initiative is based on a unique Public Private Partnership to leverage the governments investment in
creating a modern school environment and a better educational model - improving the lives of tens of thousands of
students and teachers in the process.

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In order to succeed in teaching students 21
st
century skills to match 21
st
century careers, the basic infrastructure of
Puerto Ricos schools is being transformed and updated to foster a safer, higher-quality environment that promotes
academic excellence.
To achieve those goals, the Government of Puerto Rico launched the Schools for the 21
st
Century initiative, a
$756 million program to completely modernize 100 schools and build seven new schools throughout the
Island.
As the program progresses, additional schools to be announced will also undergo substantial infrastructure
improvements.
The objectives of the program encompass creating a better learning environment for students and a dynamic
teaching platform for teachers, and transforming school infrastructure from an industrial age educational model
into a modern system much more in tune with 21st century educational practices.
The project will positively impact over 46,000 K-12 students.

Public Private Partnership a new education investment model. The Fortuo Administration is using a unique Public
Private Partnership (PPP) approach for the school modernization program, allowing the government to better leverage
its investment and requiring contractors to compete to design, build and the maintain the schools to the highest
standards in the future.
The Schools for the 21
st
Century project is financed by a special federal debt program called Qualified Schools
Construction Bonds (QSCBs). Puerto Rico received an allocation of $756 million for QSCBs.
Every municipality in Puerto Rico will have at least one newly modernized school to ensure that communities
throughout the Island benefit from the program.
Substantial cost savings can be realized by standardizing design features like windows, doors and lighting
fixtures, and negotiating bulk prices for furniture, equipment and educational technology. This can be achieved
through the competitive purchasing of building components (doors, hardware, windows, casework, etc.) from
single vendors. Using the buying power of the modernization program, costs in many areas can be cut by 50
percent or more, with these savings reinvested in the schools.

School Modernizations The elements of success. Puerto Rico Schools for the 21
st
Century Program seeks to develop a
new generation of state-of-the-art schools that enable teachers to deploy the latest educational techniques, including
interdisciplinary, project-based and distance learning; peer tutoring; and independent research. The program is designed
to leverage school construction spending to ensure every dollar spent directly and positively impacts teaching and
learning outcomes, improves parent participation and raises the profile of the school as an important and valued asset
for the entire community. A sample of proposed facilities enhancements for each school includes: State-of-the-Art
Educational Technology; Updated Electrical Systems New Science Lab; New Art Center; New Windows; Mechanical
improvements; Functional and Ergonomic Furniture.

New Schools flagship examples for Puerto Ricos future. Whereas the school modernizations will help Puerto Rico re-
energize old facilities and extend their useful life, the five new schools being constructed under the program are
designed to be flagships of the future, replacing the 70-year-old industrial model prototype that dominates Puerto Ricos
school facilities landscape today.
Design elements and goals of the new schools include: Creation of learning communities to, increase
attendance and graduation rates, and improve parent and community participation; Research-backed design
principles facilitate student achievement; Sustainably designed schools to ensure the investment lasts;
Establishment of clear measures of quality, like The Educational Facilities Effectiveness Instrument (EFEI),
which provides a very specific quality measure that is fully customized to respond to local needs in Puerto Rico.

With the Schools for the 21
st
Century program, Puerto Rico has a unique opportunity to redefine its educational future
and by extension its economic future and the well-being of its citizenry for many years to come

Puerto Ricos Character Counts Program:

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The Government of Puerto Rico and the Josephson Institute of Ethics have partnered to launch the most
comprehensive deployment of the Character Counts values education program in the country, introducing the six pillars
of character curriculum into hundreds of schools across the Island. The program is built around the basic values of good
character: trustworthiness, respect, responsibility, fairness, caring, and citizenship. The comprehensive strategy was
designed to strengthen ethics and values in order to improve academic performance, decrease dropout rates, prevent
bullying in schools, and renew the publics confidence in government and society.

The Puerto Rico model: Implementing Values Education as a tool for Social Transformation
The comprehensive strategy was designed to strengthen ethics and values in order to improve academic
performance, decrease dropout rates, prevent bullying in schools, contribute to an overall social transformation,
and renew the publics confidence in government and society.
In addition to other public schools around the country, the Josephson Institutes ethics programs have been
utilized by the U.S. Olympic Committee, the Los Angeles Police Department, the U.S. Department of Defense,
UCLA, the Iowa State Legislature, Johnson & Johnson, and other public and private sector organizations.
Puerto Ricos program focuses on four facets of society: (1) public education; (2) government services; (3)
youth sports and recreation; and (4) nonprofit and faith-based organizations.
Puerto Ricos values program is already realizing results.
Initially launched in 204 pilot schools, the response to the Character Counts! program was overwhelmingly
positive from students, parents, teachers and staff. Based on its initial success, the program was expanded
during the 2011-2012 school year to 340 schools across the island, impacting 110,000 students and 10,000
teachers.
Participating schools have reported up to 90 percent reduction in school fights, reductions in bullying behavior,
as well as increases in student peer-to-peer treatment, cleaner school grounds, school life improvement, sense
of empowerment and parental involvement. A comprehensive survey of school directors and parents showed
that 88% of the school directors said the program is effective and are committed to continue developing the
initiative, 89% said their students are more engaged in their education, and 79% said student attendance has
improved. Parent support was unprecedented. Of the 18,000 parents that completed the survey, 93% believed it
was important to continue the program, and 75% said the program had improved the quality of their childs
education.
Over 1,600 educators have graduated from Character Counts! training seminars designed by the Josephson
Institute. Faculty and staff at public child care centers also have received training.
Government services have also realized improvement. What began as a volunteer program has prompted more
governmental agencies to incorporate the core values of the Character Counts! Program, including the Office of
Government Ethics, the Administration for Integral Child Care and Development, and the Puerto Rico Police
Department, with plans to expand to all public agencies.
With nearly 20,000 officers and island-wide jurisdiction, the Puerto Rico Police Department has made the
program a centerpiece of its community-outreach activities. In March 2011, Josephson Institutes Police Ethics
Center conducted training sessions for officers and senior managers from all 13 regions of the island. The
department continues to train officers to integrate the values in all its citizen meetings and in outreach
programs. The six pillars of character adorn the new patrol cars and appear on banners at the police academy.
Through the Department of Sports and Recreation, the Pursuing Victory with Honor program has already
positively impacted over 40,000 young athletes, 4,000 parents and 2,400 coaches with plans to incorporate
close to 600 Physical Education teachers from participating Character Counts! schools.
The program continues to diversify and expand. Successful adaptations include the Values Murals for Housing
Project competition where residents were invited to design murals in public spaces, and a Holiday Card Contest
where the First Lady invited children from participating Character Counts! Program schools to design Holiday
cards based on the Character Counts! core values.


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NEW JERSEY
Governor Chris Christie
Education Reform

On September 28, 2010 Governor Christie outlined a package of reforms to improve New Jersey public schools by
challenging the status quo and transforming a system that has fallen behind. Governor Christies Reform Agenda, which
is included in several different bills pending in the state legislature, will move public education in New Jersey away from
an antiquated, ineffective model that props up failing schools toward a system that demands accountability, rewards
highly effective teachers, utilizes performance measures and ensures each and every child receives the quality education
they deserve. Through legislation, Governor Christie seeks to do the following:
Improve Public Schools by Rewarding Effective, High-Quality Teachers and Demanding accountability in the
Classroom:
Reward Innovative, Effective and High-Quality Teachers
Expand Opportunities for Great Teachers to Succeed
Demand Accountability and Results for New Jerseys Children
Ensure Children Have Well-Prepared Teachers
Empower Parents with Access to Quality Data and Additional Outreach Efforts
Engage Families in Their Childrens Education with Improved Access to Information
Improve Outreach and Communications Efforts to Parents and Families

The bipartisan package of bills introduced in July of 2011 which remain pending as of November 2011 includes:

School Children First Act (S-2881/A-4168): The bill would create a statewide educator evaluation system
consistent with the goals of the Obama Administration, ties tenure to effectiveness, ends forced placements and
Last-In-First-Out (LIFO) personnel policies by using both seniority and educator effectiveness in staffing
decisions, and reforms compensation systems. These changes will allow New Jersey to identify and reward the
most effective teachers in a meaningful and fair way, while also better supporting those few teachers who are
not effective.
Charter Reform Bill (A-4167): The bill provides critical updates to strengthen and improve New Jerseys charter
law. The bill increases the number of charter school authorizers, permits public schools to be converted to
charter schools by local boards of education as well as the Department Of Education Commissioner, and
increases charter autonomy while making them more accountable.
Opportunity Scholarship Act (S-1872/A-2810): The bill would provide tax credits to entities contributing to
scholarships for low-income students.
Urban Hope Act (S-3002/A-4264): The bill provides for the creation of as many as ten transformation school
projects in five of the States worst performing districts.

Link to New Jerseys Department of Education: http://www.nj.gov/education/

In addition to the proposed legislation, New Jersey applied for a No Child Left Behind (NCLB) waiver that seeks to
allow the state and local districts additional flexibility in providing support and interventions to struggling schools.
The waiver seeks to develop a new accountability system which will allow the New Jersey Department of Education
to focus its supports and interventions on the lowest performing schools in the state. The Department will create
three tiers of schools - Priority Schools, Focus Schools and Reward Schools - which will be identified using both
growth and absolute proficiency.

Led by the Departments new Regional Achievement Centers, the Department will create customized interventions
to turn around Priority and Focus Schools, based on their individual needs. Though the Department will focus its
interventions on Priority and Focus Schools, the Department will support all schools to constantly improve in two
ways. First, the Department will develop and publish new school performance reports for every school in New Jersey

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to replace the current bifurcated School Report Card and NCLB Report Card publications. Among other data points,
the reports will include progress towards closing achievement gaps, comparison to peer schools with similar
demographics, performance on state tests over time, and additional college and career readiness data points. These
public reports will help districts focus on areas of low performances in their districts. Second, the Department will
encourage all schools to take advantage of professional development and other support opportunities available for
Priority and Focus Schools.

As part of the waiver application, the Christie Administration outlined a comprehensive reform strategy built on the
three principles outlined in the waiver application and accomplished through the package of reform legislation
sitting before the Legislature:

1. Implementing college and career ready expectations for all students, including a detailed implementation plan
of Common Core State Standards in K-12 English Language Arts and math; development of model curriculum in
corresponding grades; and rollout of assessments tied to the Common Core State Standards through the
Partnership for Assessment of Readiness for College and Careers (PARCC) Consortium.
2. Developing a new, unitary accountability system to identify the states persistently lowest-performing schools
and develop a differentiated plan to support and intervene in those schools, and to identify the states top
performing schools and a plan to reward those schools for their achievement.
3. Supporting effective instruction and leadership by developing and implementing statewide teacher and principal
evaluation systems that take into account both student outcomes and effective practice.

In order to develop New Jerseys waiver application, the Department held a number of meetings with educators,
parents, and professional associations to solicit input on the application. The Department also collected more than
200 comments through its website over three total weeks both before developing its initial plans and then after
posting a draft outline.

Link to a copy of the waiver: http://www.nj.gov/education/grants/nclb/waiver/waiver.pdf


NEVADA
Governor Brian Sandoval
Nevadas Education Transformation

Nevadas 2011 Legislative Session produced historic education reforms that will greatly improve the quality of education
for all Nevadans. Under the leadership of Governor Sandoval, the legislature passed bills that address teacher
evaluation, recruitment, removal of ineffective teachers, alternatives in teaching licensure, and the infrastructure of the
Department of Education. Governor Sandoval said, The single greatest thing we can do for our young people is prepare
them for success by providing them with a quality education Its time to shake up the system and try a new approach.
The following are some of the main themes of Nevadas new approach.
Establishment of the Teachers and Leaders Council of Nevada- The Councils primary duty is to develop and
recommend a statewide performance evaluation system for licensed personnel that is fair and rigorous and
employs various elements, such as pupil achievement data.
Reforming Teacher Recruitment, Evaluation and Tenure- Each school district is required to establish a program
of performance for the recruitment and retention of teachers and administrators. Licensed personnel must be
evaluated on their performance based on a designated scale. Teachers who receive unsatisfactory evaluation s
for two consecutive school years will be put on probation. The decision to lay off a teacher should not be based
solely on seniority. In other words, layoffs should not be last in, first out.

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Teacher Licensure- The Commission on Professional Standards will adopt regulations for an alternative route for
obtaining a teaching or administrators license.
Reforming the State Board of Education- The composition of the State Board of Education has been altered to
more fully reflect the governors presiding role over education in Nevada. Specifically, the Governor now
appoints the Superintendent of Public Instruction. Furthermore, the Board has been tasked with reviewing and
revising its vision and mission statement, developing a plan to improve student achievement in Nevadas public
schools, defining goals and benchmarks for that plan, and reporting annually its progress to the Governor and
Legislature.
Charter School Integration- The State Public Charter School Authority has been created and given the
responsibility for authorizing and overseeing high-quality charter schools in Nevada. The director is appointed
by the Governor.

TENNESSEE
Governor Bill Haslam
Education Reform in Tennessee
Tenure Reform
Governor Haslams first legislative achievement was a dramatic overhaul of the states teacher tenure law, which
recently was recognized nationally by the Policy Innovators in Education (PIE) Network as one of the top reforms of the
past year. The new law ties tenure to student performance and included the following changes:
Extended the minimum probationary period from 3 to 5 years
Tied the states new teacher evaluation system (50% of which is based on student achievement data) to tenure
eligibility and requires a teacher to score in the top two (out of a total of five) effectiveness categories on the
evaluation in the 2 years immediately preceding becoming eligible for tenure
Ended the forced decision of lifetime job security or being fired after only 3 years. Unlike the previous law that
required directors of schools to either recommend for tenure or nonrenew a teachers contract after three years
of service, the new tenure law allows systems to continue to employ teachers on a year-to-year basis.
For teachers tenured after the enactment of the new law, the law requires a return to probationary status after
two consecutive years scoring in the bottom two effectiveness categories of the evaluation
Streamlined the process for dismissing tenured teachers

Charter Schools Expansion
In his first legislative session, Governor Haslam also pushed through the most significant charter schools bill in the
states history. The changes enacted include:
Allowing for open enrollment
Removing all caps on the number of charter schools allowed in the state
Giving the states new Achievement School District the ability to authorize charter schools

Aligning State Financial Aid with the College Completion Agenda
In 2011, Governor Haslam led a successful effort to make changes to the lottery scholarship program in order to align
the states largest financial aid program with our goal of increasing college completion rates. The law previously allowed
up to five years on the scholarship without the ability to use funds for summer sessions. The changes were meant to
make the scholarships more user-friendly for students and incentivize completing in a timely manner. They included:
Allowing students to use scholarship funds to take summer courses
Capping the overall number of hours you could stay on the scholarship to the amount required to complete your
program


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INDIANA
Governor Mitch Daniels
Education Reform

After years of underperformance from Indianas public schools, Governor Mitch Daniels and Superintendent of Public
Instruction Tony Bennett designed, passed and implemented a sweeping education reform agenda to bring teacher
accountability, school choice charter schools access to state public schools.

Teacher Accountability
Requires local school districts to develop and implement fair, rigorous, multi-faceted, annual evaluations for
teachers and principalsand make student achievement and growth a consideration in these evaluations.

Requires locals to adopt new compensation models based on teacher effectiveness, leadership roles, academic
needs of the students and teacher seniority and credentials.

Requires leaders to use these evaluations to inform personalized, meaningful professional development plans
and goals for teachers and principals.

Collective Bargaining Reform
Focuses contract negotiations between school corporations and teachers unions on salaries and wage-related
benefits.

Ends the practice of laying off teachers with least seniority first when forced to make reductions in force
decisions.

Creates a fact-finding process when teachers unions and school corporations cannot come to an agreement on
teacher contract provisions.

Increasing Charter Schools
Opens the door for more high quality charters by creating the Indiana Charter School Board and allowing non-
profit private colleges and universities to serve as sponsors (35 applications have been submitted statewide
since enactment).

Allows a charter school to have a small number of qualified teachers who have not been certified through
traditional teacher certification programs.

Allows traditional public schools that have been placed in the lowest two accountability ratings for two
consecutive years to convert to charter schools if 51 percent of students parents sign a petition and the school
board approves.

School Choice
Allows state education dollars to follow students needs so parents can select the best possible educational
options for their children.

Creates a means-tested voucher program for families (3919 were issued in the first year).
Increases the current scholarship tax credit cap to provide more students scholarships to attend high quality
non-public schools.

Measurable Results
The following goals were set before Indianas education plan was implemented, and the states reform efforts are
already showing promising results.

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Goal: 90 percent of students will pass both Math and English/Language Arts sections of state standardized
assessments ISTEP+ and End-of-Course exams.
Progress:



Notes:
In 2011, Indiana students demonstrated the largest ever ISTEP+ passage rates in each subject areas in the states
history.
75 percent of corporations (districts) improved their ISTEP+ passage rates in 2011.
64 percent of schools improved their ISTEP+ passage rates in 2011.
In 2011, Indiana had its smallest ever achievement gap based on socioeconomic status in the history of the
ISTEP+ assessment.

Goal: 25 percent of all high school graduates will receive a score of 3, 4 or 5 on at least one Advanced Placement
exam, a 4 or higher on an International Baccalaureate exam, or receive the equivalent of three semester hours of
college credit during their high school years.

Progress:





Notes:
Indiana is the nations leader in increased access to AP exams and ranks second in the nation for increased
performance on AP exams.
The most dramatic jumps are in minority student access; the number of African American students taking AP
exams increased 20.8 percent and the number of Hispanic students taking AP exams increased 42.8 percent
from 2009 to 2010.

Goal: 90 percent of students will graduate from high school.

Progress:



Notes:
From 2009 to 2010, graduation rates increased across the board.
Statewide, four-year graduation rates increased in all sub-categories.
The state graduation rate has increased 7 percent since 2007.
Sixty-six percent of school corporations and 65 percent of schools increased graduation rates from 2009-2010.
Due in part to this increase in graduates, the number of dropouts has decreased by 48 percent since 2007.



ISTEP Section 2009 2010
2011
E/LA pass 71% 75%
78%
Math pass 72% 77%
79%
Type 2009 2010
AP participation 20.7% 29.3%
AP passage 10.4% 12.4%
2009 2010
Graduation Rate 81.6% 84.5%

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SOUTH DAKOTA
Governor Dennis Daugaard
South Dakota Innovation Lab Schools

Governor Dennis Daugaard is supporting the implementation this year of an innovative approach to instruction and
learning at four small K-12 school districts with enrollments ranging from 136 to 446.

The project includes:
Delivering rigorous and relevant content through more engaging methods,
Moving from traditional silo mentality of learning and approaching curriculum to a more holistic approach
using science as a central pivot point,
Shifting the primary role of the teacher from instructor to facilitator, who guides students through content-rich
projects,
Emphasizing of project/problem-based learning using science, technology, engineering and math (STEM) as
platform for delivery, and
More local community engagement with schools and students by providing learning opportunities tied to career
skill-sets

Using the model of problem-based learning, students have the potential to master multiple content standards with just
one project. Each project infuses several aspects of different subject areas. While most of the projects are centered
around the areas of science, technology, engineering and math, all address a problem that students might encounter in
the real world, perhaps in their own community, and often incorporate elements of social studies as well, particularly
civic responsibility and environmental impact.
For example, in Armour, South Dakota, Jeff Schneider and his wife, Mary, are team teaching 10
th
grade biology and
English as one class.

The students must document all steps in their projects by writing in their journals. According to Mary Schneider, the
benefits are that students get experience in scientific writing, organizing technical thought in a clear, coherent and
cohesive message; and they can also go back and review their work to find out exactly what has or hasnt worked
previously.

Projects are often continuous, with one building upon the other, so the students quickly learn not to cut corners in their
work. At the beginning of the year, Jeff Schneider had the students write their own experiments using the scientific
method.

After they turned in their papers, they thought they were done, he said. But, they then had to perform their
experiments and obtain all the necessary supplies they would need based on what they had written. If something didnt
work, they then had to go back and modify their procedures and document that. It was a lot for them to take in at first,
but theyve adapted very well and seem to be succeeding with this type of method. Theyve really taken it and just ran
with it.

In order to make all these things happen, Jeff and Mary attended a two-week training over the summer, and Jeff says
that while he was skeptical at first, it ended up being one of the best trainings hes ever attended.

The training was provided through The PAST Foundation, and Annalies Corbin, who explained how to use the problem-
based, project approach with a multidisciplinary focus.
33



33
Dennis Duggard; The Duggard Plan, Building a Stronger South Dakota.
http://www.dennisdaugaard.com/images/data/files/The%20Daugaard%20Plan%20for%20Education(1).pdf

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We had to relearn everything we had ever known about teaching, Mary Schneider said. But we came home with a
much clearer focus about how to plan for an entire year not just a day or a weeks worth of lessons. Really, we had a
better understanding of how all these standards are connected.

LOUSIANA
Governor Bobby Jindal
Improving Outcomes in Higher Education and
Increasing Education Outcomes for Students

Governor Bobby Jindals 2011 legislative session included several bills which provided pathways for increased outcomes
at highschools and colleges.

HB 549 by Speaker Jim Tucker GRAD Act 2.0 - strengthens the GRAD Act contracts negotiated between the Board of
Regents and each higher education institution in fall 2010 in three ways. It prioritizes the key Student Success metrics
graduation rates, retention rates, and percent completersand make them required for successful performance on
contract targets. Additionally, it grants operational autonomies in purchasing, personnel, facilities, and investment in a
three-tiered structure based on performance. Capacity to manage these autonomies is determined by the Division of
Administration, and for higher level autonomies require the approval of the Joint Legislative Committee on the Budget.
Finally, it improves data and transparency by adding a cost-performance analysis of resources and outcomes to the
Board of Regents annual report on GRAD Act institutional progress. The bill also standardizes, expands, and coordinates
student-tracking systems of course credits to facilitate on-time graduation, articulation, and transfers.


HB 526 by Representative Joel Robideaux standardizes community and technical college tuition to ensure equal access
to two-year programs in every parish. The Louisiana Community and Technical College System has standardized services
across parishes so that community and technical colleges are offering comparable services to every student, but tuition
varies by geography based on the age of the institution. With this law, community colleges will have the authority to
raise tuition to the highest rate as of July 1, 2011; technical colleges will have the authority to raise tuition over three
years to $2,000 or roughly 55 percent of the average Pell Grant, which is still lower than the 60 percent SREB average. In
addition, the bill allows LCTCS to adopt a common schedule of tuition and fees so that not only is tuition the same at
each school, but each credit hour costs the same, too.


SB 53 and SB 52 by Senator John Alario boosts the constitutionally protected funding of a vital merit-based college
access tool, the TOPS Scholarship program. It does this by redirecting 75 percent of the annual Tobacco Settlement
payment to the state to the TOPS Fund, freeing up the equivalent amount, or roughly $43 million per year, in state
general fund to protect higher education and healthcare.

SB 43 by Senator Jack Donahue encourages the expansion of high-performing charter operators by enabling long-term
planning. It allows a charter authorizer to waive technical restrictions on when a charter may open following approval,
allowing charter operators to receive authorization for multiple charter schools at the same time to be opened over a
number of years. This allows high-quality operators to plan long-term and benefit from economies of scale. These same
technical changes also prevent mid-year disruption of services to students should a school need to change operators
during the school year due to unforeseen problems.


HB 421 by Representative Steve Carter creates a mutually beneficial relationship between Louisiana businesses and
charter schoolsa Business-Charter Partnershipby allowing, in exchange for a gift or free use of land or a facility, the
major renovation of an existing facility, or major donation of technology, preferred enrollment of up to 50 percent of
school seats for dependents of company employees and a minority percentage of the charter schools board seats.

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Individual businesses or groups of businesses could apply to open a new school, or in collaboration with a school district,
convert an existing school. This partnership is a boon for economic development and public education in three ways: It
empowers communities looking for a way to attract businesses to their parishes. It gives school districts, which can also
authorize charter schools, a way to involve the business community in public education. And it provides charter schools,
which often face significant difficulties when trying to find a building in which to operate, a new tool to address facility
concerns.



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Chapter 3: Capitalizing on Americas Energy Assets

Modern society is an energy society. Every day, Americans are impacted directly by energywhether its the electricity
that powers our homes and businesses, the fuel that powers our vehicles, or the development of new energy
technologies that will create the jobs of the future. Republican Governors share a common vision for the development
of a vibrant economic climate fueled in part by a more energy, more jobs philosophy. Some basic energy and
environmental principles can guide policy developmentthese include:

An all of the above approach which recognizes the need for all energy resources

Working to take advantage of all American energy resources through efficient and environmentally responsible
methods.
o Producing and utilizing oil, natural gas, coal, nuclear, and renewables.
o Ensuring that states properly balance regulation and energy development

Unleashing Americas energy production potential and securing our energy security
o Enacting more efficient permitting processes for new energy infrastructure.
o Creating certainty in energy markets with predictable states and federal government regulatory regimes

Building and maintaining an electricity grid for the 21
st
century.

Effectively managing the federal-state regulatory relationship.

Featured states in this chapter include:

ALASKA Governor Sean Parnell, Increasing American Energy Production via the Trans Alaska Pipeline System

IDAHO Governor Butch Otter, A Public Private Partnership in Energy Research

INDIANA Governor Mitch Daniels, Leading the Way in Electrification Technologies

INDIANA Governor Mitch Daniels, Conservation Efforts in Indiana

IOWA Governor Terry Branstad, Tax Credits for Biofuels to Support Increased Domestic Energy Production

IOWA Governor Terry Branstad, Protecting Iowa Communities from a Costly, Red-tape Mandate (Executive
Order 72)

MISSISSIPPI Governor Haley Barbour, Geologic Carbon Sequestration Success

MISSISSIPPI Governor Haley Barbour, Clean Energy Manufacturing Initiative

NEW JERSEY Governor Chris Christie, Energy Master Plan

PENNSYLVANIA Governor Tom Corbett, Marcellus Shale Commission

PENNSYLVANIA Governor Tom Corbett, Capitalizing on Competitive Electricity Markets in Pennsylvania


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PUERTO RICO Governor Luis Fortuno, Comprehensive Energy Reform: Moving from Oil Dependence to Clean
Energy

SOUTH DAKOTA Governor Dennis Daugaard, Ethanol Blender Pumps

SOUTH DAKOTA Governor Dennis Daugaard, Combating the Mountain Pine Beetle on State and Private Lands

UTAH Governor Gary Herbert, Governor Herberts 10 Year Energy Plan

VIRGINIA Governor Bob McDonnell, Making Virginia the "Energy Capital of the East Coast"

TEXAS Governor Rick Perry, Natural Gas Fueling Infrastructure - Clean Transportation Triangle

TEXAS, Governor Rick Perry and WYOMING Governor Sean Parnell, Hydraulic Fracturing

MAINE, Governor Paul LePage, MISSISSIPPI Governor Haley Barbour and OKLAHOMA Governor Mary Fallin,
Smart Grid Technology


ALASKA
Governor Sean Parnell
Increasing American Energy Production via the Trans Alaska Pipeline System

Alaska Governor Sean Parnell is proposing to Congress a bill called the Alaska North Slope Production Act. The Act calls
for the creation of a national plan to achieve the states goal of increasing Trans Alaska Pipeline System (TAPS) oil
throughput from Alaskas North Slope to one million barrels a day in the next 10 years.

TAPS is a critical component of our nation's energy security infrastructure and the federal government can play a critical
role in ensuring the viability of TAPS for decades. Governor Parnell is asking for congressional support for this aggressive
policy to trigger the creation of tens of thousands of jobs and billions of dollars in revenue, while lessening Americas
dependence on foreign oil.
The Trans Alaska Pipeline System (TAPS) is a critical energy and national security asset for the United States;
Congress played a significant role in ensuring TAPS was originally constructed on an expedited basis;
At its peak, TAPS produced over two million barrels of crude oil per day, which constituted over 25 percent of
C.S. domestic oil production;
TAPS is one of the largest oil throughput pipelines in the world;
TAPS throughput has significantly declined over the past decade - in 2003 approximately one million barrels
were produced per day, in 2006 about 840,000 barrels were produced per day, and in 2010 about 640,000
barrels were produced per day;
Significant TAPS throughput decline is occurring despite the fact that the North Slope of
Alaska remains one of the world's largest energy basins which, according to the U.S. Geological Survey and the
Department of the Interior, Bureau of Ocean Energy Management, Regulation and Enforcement, contains
approximately 40 billion barrels of oil and 236 trillion cubic feet of natural gas;
In addition to these abundant conventional sources of energy, the North Slope of Alaska is estimated to hold
tens of billions of barrels of unconventional, shale, he"' ),, and viscous oil;
Environmental standards and practices on the North Slope of Alaska are the most stringent in the world;
Arctic countries - Russia, Canada, Norway, Iceland and Denmark's Greenland - are rapidly developing their Arctic
hydrocarbon resources, onshore and offshore;
The recent temporary shutdown of TAPS resulted in CS West Coast refineries having to import Russian oil
instead of Alaska oil, increasing the U.S. trade deficit and undermining U.S. energy security;

87
Declining TAPS throughput undermines U.S. national security and energy security interests;
Blocking development projects in Alaska drives industry investment to jurisdictions with less stringent
environmental standards than, Alaska, thereby harming the global environment;
Increasing TAPS throughput will add tens of thousands of jobs to the U.S. economy;
Increasing TAPS throughput will lower the national deficit and trade deficit; and
Increasing TA PS throughput will increase the energy security and national security of the
United States of America in both the short run and the long run as the country continues to transition to
increased production of renewable sources of energy in the longer term.

Highlights of Governor Parnells proposed federal legislation include:

Requires the Secretary of Energy and the Secretary of the Interior to outline a plan to achieve the objective of
one million barrels of oil per day carried by TAPS from the Alaska North Slope;
Recommends streamlining the federal authorization and permitting process;
Time limits for agencies to process authorizations and permits where no time limits currently exist;
Recommends shortening some existing time limits for authorizations and permit processing;
Recommends streamlining existing review process;
Recommends financial and other incentives for the development of Alaska North Slope reserves; and
Recommends opening current off-limits areas to exploration and development.
Governor Parnell has also requested support from President Barack Obama, whose goal is to reduce the nations oil
imports by one-third by 2025. In a letter written to the president in April 2011, Governor Parnell urged that the
president support Alaskas goal of increasing the flow of oil through the Trans Alaska Pipeline System.
The state of Alaska is moving forward with several policy initiatives to increase Alaska oil production. One million barrels
per day is achievable because the North Slope of Alaska remains a world-class hydrocarbon basin that is still relatively
unexplored. The federal government needs to partner with the state in achieving Governor Parnells goal.


IDAHO
Governor Butch Otter
A Public-Private Partnership in Energy Research
34


Governor Butch Otter announced in October that the Center for Advanced Energy Studies (CAES) during the past year
provided Idaho taxpayers with an 11-to-1 return on their $1.6 million investment in the partnership a rate most
investors would envy.

CAES researchers earned $18.2 million in competitive research grants, infrastructure and other funding in federal fiscal
year 2011 which ran through September pushing the center's cumulative earnings to $41.9 million.

A University of Idaho economist estimates that CAES generated $26.8 million in regional sales, 366 jobs and $620,000 in
tax revenue in fiscal 2011 alone.

34
Hanian, John. CAES Researchers Earn $18.2 MILLION; Provide Significant Return on Investment for Idaho. Office of Governor
Butch Otter. October 11, 2011. http://gov.idaho.gov/mediacenter/press/pr2011/proct11/pr_057.html


88

CAES researchers earned more than 25 different grants and competitive awards in fiscal 2011. Some of the projects
funded include: a center that will train engineering students to assess the energy efficiency of manufacturing facilities;
researching methods to recover uranium from seawater; a software tool to help developers identify preferred locations
for solar energy farms; and developing sensors to monitor conditions inside a nuclear waste container.

CAES, which was created in 2005, is a partnership between Idaho National Laboratory and the State of Idaho through its
three researcher universities Boise State University, Idaho State University and University of Idaho.

The State of Idaho has contributed $4.8 million over the past three years $1.6 million annually to help support
university researchers' involvement in the CAES partnership.

The U.S. Department of Energy and Battelle Energy Alliance, the contractor that runs Idaho National Laboratory, also
have contributed significantly to the partnership.

Battelle Energy Alliance recently invested more than $6 million to equip the CAES Microscopy and Characterization Suite
(MaCS) with an atom probe and other high-end instruments to advance materials research. The lab also provided CAES
with $1.4 million in funding for exploratory research projects.

For more information about the CAES partnership, visit www.caesenergy.org.


INDIANA
Governor Mitch Daniels
Leading the Way in Electrification Technologies

The Hoosier state is the most manufacturing intensive state in the country and is home to some 700 automotive related
companies which employ more than 130,000 workers. In 2008, Governor Daniels created and implemented policies to
make Indiana the national hub for automotive technology development, next-generation batteries, and electric drive
vehicles. Governor Daniels goal was to leverage Indianas broad diversity of domestic and international companies, its
long experience manufacturing light-duty, heavy-duty, recreational and military vehicles, and its rich legacy of
pioneering the development of the electric power train to position Indiana as the U.S. electrification capital for the
commercialization and deployment of the new electric vehicle supply chain. For example, Hoosier companies like Delco
Remy and later Delphi have been global leaders in the production of batteries systems for advanced technology vehicles
and led the efforts in 1996 around the development of the battery system for the EV1, GMs first and only all electric
vehicle.

To leverage Indianas 100+ years in the automotive sector, workforce technical expertise, and world class
universities curriculum, Governor Daniels met with industry, universities, utilities, and NGOs to solicit their input
and collaboration the result of which created the internationally recognized Project Plug-IN electric vehicle
initiative.

The Governor worked with the Rocky Mountain Institute to secure Indianapolis ranking as the most Plug-in
Ready City in the country. Since that recognition, all automotive and clean tech industry reports include
Indianapolis as an electric vehicle deployment community

Currently two OEMs are manufacturing all electric vehicles in Indiana including the ThinkCity car and the
Navistar EStar delivery truck which is used by Federal Express. Indiana manufactured Allison Transmission and
Cummins engines are hybrid electric and diesel components in the new state-of-the-art hybrid electric buses
being deployed throughout the state. Hybrid propulsion transmission system made by Allison Transmission for
trucks includes parts from other great Indiana auto suppliers Delphi Corporation and Remy. Other Indiana OEMs

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including Toyota, Honda, Subaru, and Bright Automotive are either currently manufacturing hybrid vehicles or
are in final development stages for launch of electric hybrid vehicles.

There are two high-profile lithium-ion battery manufacturers that have located and expanded in Indiana.
Atairnano and Ener1, which have four Indiana manufacturing and R&D facilities. These advanced clean-
technology companies are mostly exporting their batteries for use in automobiles, trucks, buses and energy
storage systems.

In addition to bringing new companies to the state, the Governor has also been hands-on in assisting Hoosier
automotive suppliers with retooling and reequipping their facilities, and identifying opportunities to market
their more energy efficient components and parts. In 2010, in Indiana the Governor hosted the largest US-China
automotive summit in the history of the automotive industry. Many Hoosier companies secured contracts to
sell their component parts to the Chinese OEMs, the fastest growing consumer market in the world for
automobiles.

Governor Daniels goes on economic development trade missions every year to Japan and has visited China for
the past two years and results of these trips include Hoosier alternative vehicle OEMs and suppliers securing
new customers and/or financing partners and example is Wanxiang-EnerDel Joint Venture.

Indiana takes great pride in the companies aggressively working to accelerate the commercialization of high
performance, safe, and cost effective advanced battery technologies and in December 2010 became the first
government in the United States to incorporate electric vehicles and charging stations in the state government
fleet and garages.

The Indianapolis metropolitan bus system is utilizing Allison Transmission electric hybrid buses and currently
there are over 100+ electric vehicles with data loggers and charging stations installed throughout the greater
Indianapolis area spanning two utilities service territory, Duke and IPL an AES company.

Indiana is also a national hub for battery systems development and testing for the defense and national security
industry with unique assets like the U.S. Navys Naval Surface Warfare Center Crane, which has forged strong
partnerships around energy storage technologies with several top defense contractors across Indiana including,
SAIC, Raytheon, ITT, General Dynamics, and others.

In addition, Indianas world-class research universities including Purdue University, Indiana University-Purdue,
and the University of Notre Dame have formed an active research and development partnership around next-
generation battery technology and are working with a network of industry partners to accelerate technology
transfer. These university partners collaborate with Indianas statewide community college, Ivy Tech, to develop
new degree programs and curriculums needed to prepare the Hoosier workforce for advanced battery and
electrification technology jobs.

Indiana is establishing a North American battery center of gravity that will significantly improve the countrys ability to
more swiftly meet its ambitious vehicle electrification goals. Governor Daniels has worked to ensure that Indiana
continues to lead our nation in battery technologies for the automotive and defense industries and now the Hoosier
state has the technical expertise, collaborative industry network, and skilled workforce to serve as a global center for
next-generation solutions.







90
INDIANA
Governor Mitch Daniels
Conservation Efforts in Indiana

Indiana has utilized planning and partnerships to set aside and protect a record number of acres of wetlands, recreation
and wildlife habitat despite significant public funding limitations. Governor Daniels' leadership made this happen
without increased taxes or mandates. He has presided over initiatives including:

A major conservation initiative to acquire 43,000 acres of river corridor along 94 miles of the Wabash River and
Sugar Creek in west central Indiana and another 26,000 acres along the Muscatatuck River in southern Indiana.
With the support of numerous partners, this program will reduce nutrient runoff, create wildlife corridors,
provide habitat for threatened and endangered species, significantly improve public access to large recreation
areas and create regional conservation destinations for outdoor enthusiasts. This initiative has been nationally
recognized and become a model for modern riparian corridor protection.

The acquisition, development and opening of 3 new major Fish and Wildlife Areas, including Goose Pond (8,000+
acres), Wabashiki (2,400 acres) and Deer Creek (1,900+ acres)FWAs, with a goal of 2 more acquired and opened
by the end of 2012.

Completion of a complicated land exchange between U.S. Fish and Wildlife Service, National Park Service,
Military Department of Indiana, U.S. Army and DNR to support Camp Atterbury Joint Maneuver Training Center
in Johnson County, while adding land in nearby Putnam County that will result in an additional 800 acres of
recreational land for public use.

After decades of neglect, began the dredging (150,000+ tons of sediment removed to date) and cleanup of the
Grand Calumet River in northwest Indiana, arguably the most contaminated river in the United States.

Commissioned the states first recreational trails plan that has successfully guided the development of over 500
miles of new trails in Indiana.

Since 2005, the State has protected over 41,860 acres of sensitive habitat and recreational land through unique
and creative partnerships that span government and private sectors.

When announcing the Healthy Rivers Initiative, Governor Daniels provided his vision for accomplishing his conservation
goals:

"Over the next few years - and I hope it's very few - this part of the Wabash River, 94 miles of it, will be one continuous
wildlife habitat, one of the largest in the eastern United States. Anything worth really doing we always feel is worth
doing as fast as possible. That will be our goal: to make this real as fast as it can practically be done."


Press
Daniels wetlands plan is called amazing
by Bill Ruthhart
Friday, June 11, 2010
Indianapolis Star
Gov. Mitch Daniels on Thursday unveiled the states most aggressive conservation initiative in recent history, promising
to preserve thousands of acres of wetlands in two areas.


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Daniels said the state would try to acquire 43,000 acres in the flood plain of a 94-mile stretch of the Wabash River from
Shades State Park south of Crawfordsville to Fairbanks Landing Fish & Wildlife Area south of Terre Haute.

Today, hell announce a similar initiative for the Muscatatuck River in southeastern Indiana, but state officials declined
to give details of that project.
The Wabash conservation effort, however, is considered one of the largest ever undertaken and ranks as a top
environmental initiative during Daniels two terms in office.

This is the most amazing and perhaps the most significant investment in conservation in a generation in Indiana, said
Mary McConnell, state director for The Nature Conservancy of Indiana. Its exactly the kind of project we should be
working on as a state.

The Daniels administration has embarked on other conservation efforts the rehabilitation of the Grand Calumet River
in Northwest Indiana and the purchase of the 8,000-acre Goose Pond wetland reserve near Linton but Thursdays
announcement dwarfs those.

Daniels called the effort a huge leap forward in conservation that would create something of lasting, large
importance and make the statement that no one anywhere is more determined to protect the natural beauty that was
their inheritance than Hoosiers are.

The state will use $21.5 million from the Lifetime License Trust Fund, a state account dedicated to conservation, and $10
million from the U.S. Fish and Wildlife Service to begin acquiring the land. The Lifetime License Trust Fund collected
money from the sale of lifetime hunting, fishing and trapping licenses, which were discontinued in 2005.

Daniels said the $31.5 million in cash would be used to leverage additional federal funding, as well as private
contributions.

Nick Heinzelman, director of land acquisition for the state Department of Natural Resources, said that money would not
be enough to buy all of the land but would go a long way. None of the land, he said, would be taken forcibly by eminent
domain.

This will all come from voluntary sellers. Some will want to sell now; others may wait, Heinzelman said. Any land that
comes up for sale, well be there to buy it right away.

Daniels made it clear during his announcement on the banks of the Wabash in Terre Haute that he intends to move the
project forward quickly.

Over the next few years and I hope its very few this part of the Wabash River, 94 miles of it, will be one
continuous wildlife habitat, one of the largest in the eastern United States, the governor said.

Anything worth really doing we always feel is worth doing as fast as possible. That will be our goal: to make this real as
fast as it can practically be done.

Several weeks ago, Daniels gathered McConnell and about 20 other conservation partners in his Statehouse office to
share his plan, and all were stunned by the size of the initiative.

Our jaws were all hanging down, McConnell said. Nobody could say anything. It was like, What? Could this possibly
be true?

Tim Maloney, senior policy director for the Hoosier Environmental Council, said he also was shocked by Daniels
announcement, particularly because its one of the largest acquisition efforts in recent history.

92

This is a very large undertaking, Maloney said, and were glad to see it happening.

He said this only further solidifies Daniels record of making preservation a top priority. However, he said, the governors
environmental record remains a mixed one.

The Hoosier Environmental Council has criticized the Indiana Department of Environmental Management for scaling
back programs and has filed complaints challenging the states air and water quality standards.

Still, Maloney said Daniels announcement Thursday marked a significant step.

Its one the governor said he hopes leaves a lasting impression on the states environment.

The Wabash unites Indiana, if anything does, Daniels said. So many of our great communities grew up along it. Its in
our state song. This is our river. I hope generations of Hoosiers will look back and be grateful for this and enjoy it.


IOWA
Governor Terry Branstad
Tax Credits for Biofuels to Support Increased Domestic Energy Production

Governor Terry Branstad signed Senate File 531 into law, which offers several tax incentives for the renewable fuels
industry which is an important part of the Iowa economy. The legislation updates Iowa law for B-2 and B-5 biodiesel,
updates the E-85 incentive, creates a new tax credit for E-15 ethanol, updates the credits for E-10 ethanol and directs
some funding from the Underground Storage Tank fund to the Renewable Fuels Infrastructure Board for infrastructure
improvements. This legislation will reduce our dependence on foreign oil, lower fuel costs for Iowans, help reduce the
US trade deficit, and help create high-paying jobs in Iowa.


IOWA
Governor Terry Branstad
Protecting Iowa communities from a costly, red-tape mandate (Executive Order 72)

Governor Branstad rescinded the Iowa Reciprocating Internal Combustion Engines (RICE) National Emission Standards
for Hazardous Air Pollutants NESHAP rule by Executive Order. The RICE rule imposed unnecessary and crippling costs on
small Iowa municipal utilities, costing some consumers, on average, hundreds of dollars a year. The Governor has
continued to ask that EPA provide common-sense exceptions to this rule for emergency generators in small
communities, including a meeting with EPA Administrator Jackson.


MISSISSIPPI
Governor Haley Barbour
Geologic Carbon Sequestration Success

Mississippi is home to many abandoned oil wells, but a production method known as a tertiary CO2 flood or CO2
Enhanced Oil Recovery (EOR) can allow for the recovery of large quantities of conventionally unrecoverable oil resources
from previously produced wells. The use of CO2 in this process has been a key component of the successful
revitalization of Mississippis oil and gas industry. Through legislation passed in 2011, Mississippi now has standards and
a regulatory structure that permits and monitors geologic sequestration of carbon dioxide. Using carbon-sequestration
technology, Mississippi Power is building a first-in-the-nation market-scale coal plant in Kemper County which will

93
capture 65% of the CO2 produced from the power plant. The carbon can then be sold and used for CO2 EOR initiatives
in the state; helping to increase the states oil production and oil industry jobs. Because the CO2 will be used in
producing much needed domestic oil, this carbon sequestration solution is market driven and economically sensible.

The base load generation bill, SB 2723, which catalyzed the construction of the plant, was passed in 2011. With the
large capital requirements associated with building coal and nuclear baseload generation facilties, companies are able to
recover construction costs on facilities during construction, whereas previous requirements stipulated that costs
couldnt be recovered until a plant was operational. These modifications will cut interest costs and result in savings to
Mississippi ratepayers.


MISSISSIPPI
Governor Haley Barbour
Clean Energy Manufacturing Initiative

Increasing and diversifying energy production and production components in Mississippi is a major area of focus for the
states economic development future. In 2010, Governor Barbour asked the Mississippi legislature to pass the Clean
Energy Manufacturing Initiative (CEMI), which was later passed and, through tax exemptions, encourages manufacturers
of systems or components used in the generation of renewable or alternative energy to locate in the state.

The program requires a minimum investment of $50 million and 250 jobs, provides a 10-year exemption from income
and franchise tax, and gives a sales tax exemption from beginning of project until three months after commercial
production at the facility. CEMI supplements Mississippis other off the shelf industry incentive programs, which
typically assist with public infrastructure expansion needs.

Mississippi's energy policy is more affordable, American energy. A reliable energy supply is essential to economic
growth and expansion.


NEW JERSEY
Governor Chris Christie
Energy Master Plan

On June 7, 2011, Governor Chris Christie released New Jerseys 2011 Energy Master Plan (EMP), a greener and more
affordable vision for the use, management, and development of energy in New Jersey over the next decade and beyond.
The draft EMP establishes a path for the Administration to manage energy in a way that promotes renewable sources of
energy, saves money, stimulates the economy and job creation, and protects the environment.

The plan encompasses five overarching goals which work to drive down the cost of energy for all customers while
promoting clean, environmentally safe renewable sources of energy:

Promoting a Diverse Portfolio of New, Clean, In-State Generation
Expanding electricity generation resources to improve reliability and to lower costs, consistent with protecting
the environment and growing the economy. Renewable energy resources, distributed generation, and clean
conventional generation projects can help New Jersey flourish while protecting the environment.
o Constructing new generation and improving Pennsylvania-New Jersey-Maryland Interconnection, LLC.
(PJM ) rules and processes;
o Assessing the implications of lost nuclear capacity;
o Expanding Distributed Generation (DG) and Combined Heat and Power (CHP);
o Supporting behind-the-meter renewables;

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o Promoting effective use of biomass and waste-to-energy; and
o Promoting the safe expansion of the interstate natural gas pipeline system.

Creating a Realistic Path to Achieving a Renewable Energy Portfolio Standard of 22.5% by 2021
New Jersey is committed to meeting the targets for renewable energy production which is an important part of
the states long-term strategy.
o Building upon the Christie Administrations commitment to solar energy for both economic and
environmental benefits;
o Expanding implementation of commercial and industrial solar projects;
o Promoting the development of large solar generation projects on brownfield sites and landfills to offset
the costs to cap or remediate these sites;
o Promoting development of solar to assist local governments reduce energy costs; and
o Maintaining support for offshore wind by codifying the statutory requirements of the Offshore Wind
Economic Development Act (OWEDA). This provides a framework for setting offshore wind renewable
energy certificate (OREC) prices and for approving applications to facilitate the financing of offshore
wind projects; and
o Saying no to new coal-fired generation in New Jersey.

Rewarding Energy Efficiency, Energy Conservation and Cost Effective Renewable Resources
New Jerseys electric ratepayers pay the fourth-highest retail rates in the United States. Focusing on energy
efficiency and conservation will help lower costs while promoting environmentally sound energy use at the same
time. New Jerseys array of energy efficiency and conservation programs and CHP programs are a cost-effective
way to reduce energy costs and carbon emissions.
o Reducing peak demand and lowering capacity costs;
o Promoting energy efficiency and demand reduction in State buildings;
o Incorporating aggressive energy efficiency in building codes;
o Redesigning the delivery of State energy efficiency programs;
o Monitoring PJMs Demand Response Initiatives;
o Improving natural gas energy efficiency; and
o Expanding energy conservation education and outreach to assist consumers in reducing usage.

Capitalizing on Emerging Technologies for Transportation and Power Production
Support the Development of Innovative Energy Technologies. New Jersey has many options to develop new,
clean, cost-effective sources of electricity, utilize fuels more efficiently, and decrease reliance on gasoline and
diesel fuel as the primary transportation fuels. Not only will new energy technologies reduce emissions of air
pollutants and greenhouse gases, but active support of innovative energy technologies will help create jobs and
business development across the state.
o Improving transportation efficiency;
o Reducing carbon emissions and pollutants;
o Using fuel cell technology;
o Using energy storage technologies;
o Assessing smart grid demonstrations; and
o Considering Dynamic Pricing and Smart Metering.

Encouraging Economic Development and Job Growth
This plan aims to develop and manage energy in a manner that saves money, stimulates the economy and
creates high-quality renewable energy industry jobs.
o Supporting the development of new energy-related technologies such as fuel cells, offshore wind, and
alternatively fueled vehicles;
o Reducing the cost of energy for all ratepayers (individuals and businesses);

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o Encouraging energy efficiency at all levels (from homeowner to businesses and state government) thus
reducing overall energy demand and helping to reduce costs; and
o Facilitating the development of new and innovative businesses that will provide and support the next
generation of energy technologies and related businesses through the New Jersey Business Incubator
Network.

The BPU will continue to serve as the lead implementing agency for the Energy Master Plan and will hold three public
hearings on the draft EMP. In doing so, the BPU will coordinate with appropriate state agencies, energy providers and
other stakeholders; track and report on progress through annual reporting to the Governor and posts to the BPU and
EMP websites; and work with the legislature to develop or modify existing and future programs that support these
energy goals.

In April 2010, Governor Christie directed the New Jersey Board of Public Utilities to revisit the EMP in light of economic
conditions. The process included internal BPU Task Force Meetings, Stakeholder meetings around the state on various
issues related to the plan, and extensive consultations with Rutgers Universitys Edward J. Bloustein School of Planning
and Public Policy, Center for Energy, Economic, and Environmental Policy

Press
CHP Slowly Picks Up Steam
By Tom Johnson
September 14, 2011
NJ Spotlight
http://www.njspotlight.com/stories/10/0913/2113/
The Christie administration has come up with partial funding for a half-dozen clean-power projects that have been held
up since it diverted money targeted to the effort because of the states budget crisis.

The money, available from the New Jersey Economic Development Authority, will provide up to $18 million in a
competitive grant program that will be jointly administered by the authority and state Board of Public Utilities (BPU). It is
expected to fund at least six or seven combined heat and power (CHP) projects, which are small, efficient power plants
that produce electricity and steam simultaneously.

Funding for the program is provided by the American Recovery and Reinvestment Act (ARRA), President Obamas
economic stimulus package passed by Congress last year. It falls far short of the $48 million originally set aside to finance
22 combined heat and power projects approved by the state. The Christie administration redirected that money to help
plug a hole in the 2010 budget, which ended June 30.

Twice As Efficient as Conventional Plants
New Jerseys energy master plan calls for the development of at least 1,500 megawatts of CHP plants by 2020 to help
meet the states power needs. The CHP facilities are generally more than twice as efficient as conventional power plants
and produce much less pollution, particularly greenhouse gas emissions that contribute to global climate change.

With $18 million in funding, the program should allow six or seven projects to move forward, according to Joseph
Sullivan, BPUs ombudsman. It is likely the money would be enough to fund CHP projects with a total of 38 megawatts of
capacity, said Fred DeSanti, a lobbyist who represents several plants that expect to file applicants for grants. One
megawatt is enough to power about 800 homes.

The business community, which had been upset by the diversion of funds earlier this year, welcomed the infusion of
financing for the projects.

Obviously, this will help, but we will continue to work for other funding sources, said Sarah Bluhm, an assistant vice
president for the New Jersey Business and Industry Association.

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The Administrations Aim
In announcing the program, state officials said it reflects Gov. Chris Christiess aim of making energy more affordable,
more reliable and more often produced by New Jersey workers. CHP will be part of the solution and we are pleased to
offer businesses and public and not-for-profit organizations an opportunity to save money and create jobs while also
reducing energy demand, said Caren Franzini, chief executive officer for the EDA.

BPU President Lee Solomon said the competitive grant program puts New Jersey in a better position to advance CHP
projects. He called it another indication that New Jersey will continue to lead in the development of clean energy.

However, the state is currently conducting discussions on whether it should phase out the Retail Margin Fund, which is
financed by a surcharge on businesses stemming from the breakup of New Jerseys electric monopolies. It was the
source of funding identified in legislation that would have provided up to $60 million in funding for CHP projects.
Business lobbyists have long complained about the surcharge, criticism that grew after the administration diverted $128
million out of the fund to balance the budget. Among other options, the state is also exploring tapping into other clean-
energy projects to fund combined heat and power projects.

Meanwhile, yesterday the Assembly Telecommunications and Utilities Committee approved a bill (A-2872) that aims to
impose a standardized system for electric utilities in assessing special surcharges on CHP plants for tying into their
distribution system. Currently, the charges vary widely from utility to utility, an impediment to developing new CHP
projects, according to DeSanti.


PENNSYLVANIA
Governor Tom Corbett
Marcellus Shale Commission

In March 2011, Governor Tom Corbett issued executive order establishing the Marcellus Shale Commission. The EO
stated that The Commission shall develop a comprehensive, strategic proposal for the responsible and environmentally
sound development of Marcellus Shale. The Commission approved its final report in July 2011. The Marcellus Shale
Commission is an example of government seeking input from stakeholders in order to create the framework necessary
to insure public health, environmental protection, and a robust climate for private sector innovation in the energy
sector.

Marcellus Shale Advisory Commission
Report Summary

A Comprehensive, Strategic Plan.
96 Recommendations outlining a comprehensive, strategic plan for the responsible development of natural gas
drilling in the Commonwealth.]
Unanimously approved by the commission on Friday, July 15, 2011.
Outlines first major update of Oil and Gas Act in nearly three decades.
Culmination of four months of work by commission.
o 20 public meetings.
o 60 expert presentations.
o 100 citizens offered public presentations.
o 650 emails and letters from public.
o Onsite visit to well sites and local businesses in Lycoming and Clinton counties.




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Stronger Regulations for Drilling.
Increase bonding amounts from $2,500 to $10,000 and more for deeper wells.
Up to $250,000 for blanket bonds.
Triple well setback distance from streams, ponds, and other bodies of water from 100 to 300 feet.
Increase setback distance from private water wells from 200 to 500 feet and to 1,000 feet for public water
systems.
Expand operators presumed liability for impairing water quality from 1,000 ft to 2,500 feet from a well, and
extends the duration of presumed liability from 6 months to 12 months.
Require minimum 24hour notification before commencing certain well site activities.
Post critical information online, including violations, penalties and remedial actions.
Expand public disclosure and information through enhanced well production and completion reporting.

Tougher Penalties for Violators.
Double penalties for civil violations from $25,000 to $50,000.
Double daily penalties from $1,000 to $2,000 a day.
Make penalties for criminal violations consistent with other environmental statutes.
Enhance DEPs ability to suspend, revoke or deny drilling permits for failure to comply.

Enhance Pennsylvanias Energy Independence.
Develop Green Corridors in Pennsylvania for natural gasfueled vehicles with filling stations at least every 50
miles and within two miles of designated highways.
Include natural gas vehicles in Pennsylvania Clean Vehicles Program.
Provide incentives for the conversion of mass transit and school bus fleets to natural gas.
Provide incentives for intrastate natural gas pipelines to encourage instate use and help lower costs for
Pennsylvanians.
Enhance air quality through increased use of natural gas for transportation.

Create Jobs for Pennsylvanians.
Build regional business parks in strategic locations to maximize jobcreation potential.
Evaluate future rail needs to support industry and reduce need for truck traffic.
Develop a comprehensive strategy to maximize downstream use of natural gas and its byproducts, such as in
chemical manufacturing, plastics, etc.
Develop a strategy to help Pennsylvania companies to supply natural gas industry with the products they need.

Train Pennsylvanians for Natural Gas Jobs.
Work with industry to develop a standard curriculum to provide proper training.
Develop jobtraining assistance and certification programs for jobs in the industry.
Develop educational material on natural gas for use in grade and high schools.
Partner with groups like Hiring Our Heroes and Troops to Roughnecks.
Develop a gas safety inspector training facility in PA. (There is currently only one in the nation located in
Oklahoma.)

Protect Public Health.
Create a populationbased health registry.
Collect and evaluate clinical data from health care providers.
Monitor citizens living near drilling sites.
Create a system for timely and thorough investigation of complaints.
Establish education programs about potential impacts on health.



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Improve Infrastructure.
Create a onestop shop for pipeline permitting process to better coordinate review and ensure thorough
oversight.
Evaluate rail freight facilities and capabilities to relieve burden on roads and bridges.
Evaluate air service and infrastructure needs among regional airports.
Amend state law to allow location of energy and utility infrastructure within PENNDOTs rightofway.
Expand PA Natural Resource Inventory online tool to accommodate linear projects longer than 15,000 feet.
35


Promote Public Safety.
Assign 911 addresses and GPS coordinates for well sites.
Develop standardized emergency response plans.
Provide comprehensive training for local responders.
Create regional safety task forces.
Establish a specialized team of emergency responders.

Protect Natural Resources.
Establish an advisory committee within DCNR to discuss future development of state forest and park land.
Document and monitor effects of industry on plants, forests, wildlife, habitat, water, soil and recreational
resources.
Review and regularly update best management practices for well site construction and operation.
Prevent spread of invasive plant species.

Help Communities Deal with Impact.
Recommend enactment or authorization to impose a fee to mitigate uncompensated impacts caused to
communities by natural gas development.
Any fee should recognize ongoing nature of certain impacts.
Attributable impacts identified by the advisory commission include:
Environmental remediation.
Public health evaluation and emergency response.
Increased demand on social services.
Infrastructure improvements.
Natural resource agency administration and oversight.



PENNSYLVANIA
Governor Tom Corbett
Capitalizing on Competitive Electricity Markets in Pennsylvania
36


In his 2010 campaign, Governor Tom Corbett promised to work with the General Assembly and key stakeholders to pass
an Electricity Consumers Bill of Rights to ensure that Pennsylvanias consumers will have the tools they need to
compete and win in a restructured market place.

Among the planks of the proposed Electricity Consumers Bill of Rights are:



35
Pennsylvania Natural Heritage Program , Pennsylvania Natural Heritage Program , http://www.naturalheritage.state.pa.us/.
36
Adapted from: http://www.tomcorbettforgovernor.com/issues/corbett-energy-policy.pdf


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Conduct additional consumer education -
A restructured marketplace demands that consumers think differently about their electricity. After many years of
capped rates, consumers must adjust to market-based pricing, prepare for potential increases in wholesale energy prices
and take steps to prepare for and reduce their electric bills. Consumer education enables customers to realize the
benefits of competition by offering access to innovative rate designs, renewable energy products, and choice of a
competitive supplier, conservation and energy efficiency. Education is also essential for low-income and vulnerable
customers to maintain service by taking advantage of utility programs to control the size of their electric bills and seek
customer assistance.

Focus state government on markets -
Work to spur productive investment in Pennsylvanias energy sector by directing all of the government agencies
involved in state energy policy to institute policies that promote private sector innovation and competition to meet the
commonwealths energy needs. The Governor will direct the Energy Executive to oversee interagency coordination to
ensure effective energy policy implementation without the need for additional state bureaucracy or taxpayer expense.
He also will direct all agencies under the governors jurisdiction to streamline environmental permitting and prioritize
energy projects that promote economic development and investment. In addition, Corbetts will appoint agency heads
and Public Utility Commissioners focused on innovation and promoting competitive markets and solutions to energy
problems.


PUERTO RICO
Governor Luis Fortuno
Comprehensive Energy Reform: Moving from Oil Dependence to Clean Energy

Puerto Rico faces some of the highest energy costs in the country, with electricity costs more than double the rest of the
nation. The cause is a 68 percent dependence on oil for power generation vs. one percent in the states. In addition to
the negative economic impact, Puerto Ricos reliance on oil is also bad for the environment. To overcome these
problems, the territory has launched a comprehensive energy reform that will replace dependence on oil with cleaner,
safer, and healthier alternative sources, including natural gas and renewable energy resources, particularly solar and
wind.

Breaking Puerto Ricos environmentally and economically damaging dependence on oil for energy production.
o Puerto Rico currently produces 68% of its power from oil, with 15% coming from natural gas, 15% from
coal and 1% from renewables. By comparison, the U.S. as a whole relies on oil for only 1% of power
generation.

o According to the U.S. Energy Information Administration, Puerto Ricos kWh cost in 2009 was 21.69
cents, more than double the U.S. mainland average kWh cost of 10.2 cents. The price differential was
even more pronounced during the recent spike in oil prices, with the average retail price reaching 29
cents per kWh.

o Puerto Ricos reliance on oil fired generation is economically debilitating. The dependence negatively
affects island consumers and businesses and represents a persistent drag on the economy.

o As a result, Governor Fortuo has made switching to cleaner, cheaper sources of energy, such as
natural gas and renewables, a top priority.

Deploying a comprehensive energy strategy focused on alternatives to oil.
o Puerto Rico is pursuing a comprehensive strategy to address Puerto Ricos high energy costs and
environmental harm caused by burning dirty oil.

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o New energy reform laws signed by Governor Luis Fortuo in 2010 lay out incentives for alternative
energy development and commit the government to ambitious goals for the growth of renewable
energy. These include the Energy Diversification Act (Law No. 82), that sets up a renewable portfolio
standard and the Green Energy Incentive Act (Law No. 83).
o Through the Energy Diversification Act, the governments new targets for energy generation are: 12% of
power generation through renewable and alternate sources by 2015, 15% by 2020 and 20% by 2035.
The law also created a renewable energy certificate market to help finance utility-scale renewable
generation.

Working to dramatically increase alternative energy development in Puerto Rico.
o The Puerto Rico Electric Power Authority (PREPA) has signed contracts for the purchase of 600
megawatts of renewable energy, primarily solar, wind and waste to energy.
o Over $1 billion in potential private sector investment is being pursued for a portfolio of wind, solar and
waste-to-energy projects.
o Puerto Ricos new Green Energy Fund will enable the Government to co-invest $290 million in
renewable energy over the next 10 years. The first year of funding, which began July 1, will provide $20
million geared toward the development of small and medium-sized solar and wind projects. The Green
Energy Incentives Act also creates several special tax exemptions for companies engaged in renewable
energy generation.
o Puerto Rico is working to develop a market for electric vehicles. The Government recently signed a
Memorandum of Understanding with Nissan to introduce and incentivize the use of the Nissan LEAF
zero emission vehicle, including exploring the creation of a battery recharge network on the Island.

Using cleaner, safer, and cheaper natural gas while the promise of renewables is realized.
o Renewable energy represents Puerto Ricos long-term energy future, but it will not provide significant
short-term economic savings because technologies continue to be costly and take years to deploy to
maximum capacity.
o Thats why in the near term, Puerto Rico is transitioning its oil burning, electrical power plants from
petroleum to cleaner, safer, cheaper natural gas.


SOUTH DAKOTA
Governor Dennis Daugaard
Ethanol Blender Pumps

South Dakota has fifteen ethanol production plants that create over one billion gallons of ethanol each year. Almost
every gas station is South Dakota has at least one pump that allows for the sale of 10% blended ethanol gasoline.

More use of ethanol in gasoline decreases United States dependence on mid-east oil and the 10% ethanol blended
gasoline is usually cheaper than regular gasoline. However, more and more flex-fuel vehicles are being bought by
South Dakotans who want to burn fuel in their new vehicles that contain as much as 85% ethanol.

Due to the cost of installing new blender pumps that can provide 10% to 85% ethanol blended gasoline, we dont have
enough of these special pumps across the state.

Therefore, Governor Daugaard introduced and secured passage of Senate Bill 196 during the 2011 Legislative Session.
The new law provides incentives to gasoline retailers to add new blender pumps to the existing pumps at gas stations.
Retailers can receive $25,000 for the first pump installed and $10,000 for each additional pump installed. These
incentives do not require any additional appropriations because the $3.5 million cost over the next five years will be paid
from an already existing alternative fuel fund.


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SOUTH DAKOTA
Governor Dennis Daugaard
Combating the Mountain Pine Beetle on State and Private Lands

Over one-third of the federally managed Black Hills National Forest400,000 acres has been infested by the mountain
pine beetle and the outbreak has not been controlled. Millions of dead trees are a huge fire hazards. Beetles from the
federal land are now infesting private lands and state lands, including Custer State Park, the largest state park in the
United States.

Governor Daugaard has created the Black Hills initiative to spend more money to fight the spread of the mountain pine
beetle by cutting down and removing infected trees, especially in areas where the infected federal forest is adjacent to
state and private lands. The initiative also includes a strong education program for the public, funding for private
suppression efforts and more cooperation and coordination of efforts with the U.S. Forest Service. More information
can be found at www.beatthebeetles.com.


UTAH
Governor Gary Herbert
Governor Herberts 10 Year Energy Plan

The success of Utahs economic structure has, to a great extent, been fostered by the abundance and affordability of its
energy resources. The combination of these available resources and an entrepreneurial spirit has attracted businesses to
the state, creating thousands of jobs along with increased state revenue. In the years to come, projected increases in
energy demand and consumption will make the need for competitive energy prices all the more important for Utahs
continued success. It was with that in mind that Governor Herbert appointed the Utah Energy Task Force to develop a
10 year strategic energy plan.
37


In its 42 page report the Energy Task Force made several recommendations aimed at encouraging energy innovation and
supporting strong free market economic development. These recommendations included:

Creating an Office of Energy to consolidate the states existing energy functions and implement the Governors
initiatives efficiently
Strategic tax incentives for energy production, without favoring one energy source
Creating a research triangle amongst the states top universities aimed at the development of clean energy
sources
Coordinating with the federal government to allow for energy development on public lands
Increased efficiency and transparency measures for state regulatory and licensing operations
Encouraging energy efficiency and the reduction of consumption through public education and incentives
Diversifying transportation fuels and creating an infrastructure to meet the energy needs of the future

Governor Herberts energy vision includes a combination of coal, oil, gas, renewable energy sources, and potentially
nuclear power that will allow Utah to maintain its high level of energy independence. The Herbert administration is
encouraging west desert wind and solar projects, the commercialization of natural gas produced in the Uinta Basin, and
the evaluation of a water-rights application for a nuclear plant. Furthermore, in an effort to reduce ever growing
consumption levels the Governors plan explores changes to transportation and urban planning, including alternative
fueling stations and a focus on mass transit.
38


37
Adapted from: www.utah.gov/governor/docs/energy-10year-plan.pdf
38
Loomis, Brandon. "Utah Governor Releases 10-year Energy Plan." Salt Lake Tribune [Salt Lake] 18 Mar. 2011.

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VIRGINIA
Governor Bob McDonnell
Making Virginia The Energy Capital of the East Coast

Virginia Governor Bob McDonnell campaigned with a vision for Virginia as the Energy Capital of the East Coast. Since
taking office in January 2010, the Governor has shepherded numerous pieces of legislation which will help Virginia step
closer toward this goal.

Electric Vehicles - HB2105 - The ownership or operation of a facility at which electric vehicle charging service is sold, and
the selling of electric vehicle changing service from that facility, does not render the person a public utility, public service
corporation, or public service company solely because of that sale, ownership, or operation. This will permit private
third parties to develop and sell electric recharging services, expanding the infrastructure available to support the
emerging electric vehicle market.

Alternative fuel fleets - HB2282 - Requires the Director of the Department of General Services, in conjunction with the
Secretary of Administration and the Governors senior advisor on energy, to develop a plan providing for the
replacement of vehicles in the centralized fleet with vehicles that operate using natural gas, electricity, or other
alternative fuels.

Distributed solar power generation - HB1686 - Directs the SCC (State Corporation Commission) to consider approval of
distributed solar generation facilities, constructed and operated by a utility, and special pricing of the power generated
by those facilities. Allows such projects to be treated as demonstration projects for purposes of assessing their benefits
to the utility's power distribution system for improving reliability. Encourages participation by local governments,
schools and not for profits in providing locations for these projects.

Electric generation facility impacts on economic development - HB1912 - Expressly includes "furtherance of the
economic and job creation objectives of the Commonwealth," among the factors the SCC must consider when they
decide whether or not to approve a proposed electric generation facility. Makes clear that the SCC must consider the
rate impact of renewable resources before approving reliance on renewable resources.

Net energy metering program - HB1983 - Increases the amount of electricity a homeowner or business can generate
with its own installation from 10 kilowatts to 20 kilowatts, expanding the availability of distributed generation and
encouraging installation of renewable projects.

Voluntary Solar Resource Development Fund - HB2191/SB975 - Creates a Voluntary Solar Resource Development
Fund. Requires utilities to provide a link to information about the Fund and to a web site where their customers can
make donation to the fund. Money donated to the fund will be made available as loans to support construction of solar
energy projects.

Clean Energy Manufacturing Incentive Grant Program - HB2316/SB1360 - Creates a program that provides financial
incentives to companies that manufacture or assemble equipment, systems, or products used to produce renewable or
nuclear energy, or products used for energy conservation, storage, or grid efficiency purposes.

Expanding the authority of the Virginia Resources Authority HB2389 - Adds renewable energy projects to those which
the Virginia Resources Authority may finance

Commonwealth Energy Policy - SB862 - Ensures that if localities adopt local ordinances to address the siting of
renewable energy facilities, that the ordinance will be consistent with provisions of the Commonwealth's Energy
Policy. Provide reasonable criteria for siting renewable energy facilities.


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Clean Fuel Vehicle Job Creation Tax Credit - SB1236 - Extends the sunset date of the tax credit from the 2011 taxable
year to the 2014 taxable year


TEXAS
Governor Rick Perry
Natural Gas Fueling Infrastructure - Clean Transportation Triangle

On June 17, 2011, Governor Rick Perry signed Senate Bill 20, most commonly known for containing legislation to
implement what has been termed the Texas Clean Transportation Triangle. The bill takes effect on September 1, 2011.
Senate Bill 20 includes incentive programs for the conversion of medium and heavy duty vehicles to compressed or
liquid natural gas through the use of grants and tax incentives. As part of Governor Perrys continuing effort to diversify
Texas energy, SB20 specifically includes text for the creation of a Clean Transportation Triangle to be created along the
main highway corridors connecting the greater Dallas-Fort Worth area, Austin, San Antonio, and Houston. The bill
provides for grant awards to businesses and/or organizations for the implementation of natural gas fueling stations
within the triangle corridor.
As stated by Texas Representative Tan Parker, during the ceremonial signing of the legislation by Governor Perry, "Many
of us have worked tirelessly for years to strike the right balance between protecting our public health and wellbeing,
while allowing North Texas to reap the tremendous economic benefits that our natural resources provide.
1
Governor
Perry has urged the state to take advantage of Texass position as a leader in natural gas production (producing over
one-third of all natural gas in the country) and stated during the signing of SB20 the goal of making tomorrow's
technologies more viable.
39

SB20 provides approximately $8 million a year for the conversion of medium and heavy duty trucks to natural gas and
nearly $2 million in grants to building natural gas infrastructure along interstates 45, 10, and 35highways that connect
five of the nations 20 largest cities in what has been termed the Texas Triangle Megaregion. In addition to further
utilizing Texass abundant natural gas resources, leading to further job creation and expansion of the energy sector,
SB20 is estimated to dramatically reduce automobile emissions with the equivalent of removing 175,000 cars from
Texas roadways and reducing overseas oil reliance by displacing more than 41 million gallons of petroleum-diesel fuel
over a four year span.

Hydraulic Fracturing

Several states have enacted legislation or administrative rules which regulate activities surrounding hydraulic fracturing
(fracking) for natural gas. According to the National Conference for State Legislatures (NCSL), since October 2010,
more than 100 bills across 19 states have been introduced relating to hydraulic fracturing for natural gas.
40
Wyoming
was the first state to pass legislation requiring the full disclosure of fracking chemicals, though there are exceptions
allowing companies to abstain from disclosing the identities of 146 chemicals.
41
Michigan followed Wyoming in May,

39
Office of the Governor Rick Perry, Gov. Perry: Texas Continues to Lead the Nation in Energy Production, July 15, 2011,
http://governor.state.tx.us/news/press-release/16383/.
40
Jacquelyn Pless. Fracking Update: What States Are Doing to Ensure Safe Natural Gas Extraction. NCSL Issues and Research.
National Council of State Legislatures. July, 2011. http://www.ncsl.org/?tabid=23224.
41
Fugleberg, Jeremy Wyoming regulators exempt 146 fracking checmicals from public disclosure. Billings Gazette. 24 August
2011. Web. http://billingsgazette.com/news/state-and-regional/wyoming/article_4a291cb8-28d0-5468-8c92-8beb49615c95.html

104
2011; with the Michigan Department of Environmental Quality (DEQ) issuing a rule requiring changes to water usage
oversight, chemical reporting, and submittal of fracturing records.
42


On June 17, 2011, Governor Rick Perry of Texas signed HB 3328
43
which requires natural gas well operators to disclose
chemicals used during the process of fracking. The bill addresses public concern related to fracking by adding
transparency to a method of recovering hydrocarbons which generally lacks public
understanding. While some disclosure of chemicals is already required by law in Texas for the benefit of employees and
emergency services, current law does not require a full disclosure, nor does it require a disclosure to the public. The
bill directs the Texas Railroad Commission to require that a website be available for well operators to upload a
disclosure statement that the public can easily access. However, in a compromise with well operators, who expressed
concern about chemicals found in the water used which are outside their control, the bill exempts operators from
disclosing ingredients not purposely added to the hydraulic fracturing treatment. The bill also provides protection for
confidential business information while still disclosing the information needed for research, investigations, and medical
treatment.

As the Federal government considers a range of actions including the Fracturing Responsibility and Awareness of
Chemicals Act of 2011 (FRAC Act), state regulatory regimes for natural gas will come under increased scrutiny. The FRAC
Act, originally two bills H.R. 1084 and S. 587, one that would amend the includes language that would change the
definition of underground injection found in the Safe Drinking Water Act (SDWA) to include hydraulic fracturing, and
another that would create a new disclosure requirement for the chemicals used in fracking.
44
The Ground Water
Protection Council (GWPC) and the Interstate Oil and Gas Compact Commission (IOGCC) each report that the major oil
and gas producing states now have laws and regulatory requirements in place to protect water resources during oil and
natural gas exploration and production activities. Some of the commonsense approaches best fit the diverse needs of
our states and will preempt burdensome federal regulatory dictates which may not necessarily recognize the diverse
geology of each state.

Press

Texas agency hears draft rules for hydraulic fracturing disclosure
Houston (Platts)August 29, 2011
http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6423262
The Texas Railroad Commission on Monday began the process of adopting a set of rules that would require oil and gas
well operators to disclose the chemicals used in hydraulic fracturing operations.

In a unanimous vote, the three members of the commission accepted the staff's proposed rules after a hearing in Austin.
Persons who wish to make comments can read the proposed rules and comment on them on the TRC website.

The rules are expected to be published in the Texas Register on September 9, after which there will be a 30-day
comment period, concluding on October 11. In addition, there will be a public comment hearing on October 5 held at
the commission's headquarters in Austin.

In taking up the rulemaking process, the TRC is putting the process on a fast track.

When the state legislature in May passed a bill calling for adoption of fracking fluid disclosure regulations it called on the
TRC to write disclosure rules for hazardous chemicals by July 1, 2012 and to have a complete rulemaking for all other

42
Wurfel, Brad. Michigan issues new orders for fracking. Michigan Department of Environmental Quality. May 25, 2011.
http://www.michigan.gov/deq/0,4561,7-135--256844--,00.html
43
Texas Legislature. HB 3328. Texas Legislature Online
http://www.legis.state.tx.us/BillLookup/Text.aspx?LegSess=82R&Bill=HB3328
44
United States. Congressional Research Service. Hydraulic Fracturing and Safe Drinking Water Act Issue. CRS Report No. R41760.


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chemicals used in the process by July 1, 2013.

However, the commission is on track to have the rules in place for all chemicals by July 1, 2012 or earlier.

Representatives of the environmental community and industry associations both praised the commission for moving
forward so quickly on the rulemaking. "We appreciate the hard work of the commission staff in getting these rules out
there sooner rather than later," said Cyrus Reed of the Lone Star Chapter of the Sierra Club.
"We're pleased that they got it out so quickly," said Justin Furnace of the Texas Independent Producers and Royalty
Owners Association. "I expect the new rules to be very workable and close to what industry would like to see. I look
forward to working with the commission as the rulemaking process progresses."

Under the proposed rules, the operator of a well would be required "to submit information about the chemical
ingredients and volumes of water used in the hydraulic fracturing treatment of a well" to the online chemical registry
FracFocus.org within 30 days of the completion of a hydraulic fracture treatment.

In addition, the operator would report the total volume of water or other base fluid used in hydraulic fracturing.

The proposed regulations contain a provision for the operator to request that specific additives or chemical ingredients
be treated as trade secret information. Under this provision, the operator would only be required to provide the
commission information "that discloses the chemical family associated with the chemical ingredient."

The operator also would be required to release the trade secret information to a health professional or emergency
responder who needed the information "for diagnostic treatment or other emergency response purposes."

Challenges to the claim of trade secret protections could only be filed by the landowner on whose property the well is
located; a landowner who owns property adjacent to the property where the well is sited; and a state department or
agency "with jurisdiction over a matter to which the claimed trade secret information is relevant."

TRC Commissioner Elizabeth Ames Jones noted that hydraulic fracturing has been conducted in Texas for more than 60
years with no reported incidents of impacts for underground supplies of drinking water.

Last year, the state issued about 15,500 permits for oil and gas wells. The TRC estimates that about 85% of all wells
drilled in the state -- about 13,000 wells annually -- undergo fracking.

Although other energy producing states have enacted regulations regarding the disclosure of the chemical composition
of fracking fluid, with the passage of the fracking disclosure legislation, Texas became the first state to require such
disclosure by statute. Other oil- and gas-producing states are expected to view the Lone Star State's disclosure as a
model for their own legislative efforts.

Wyoming regulators exempt 146 'fracking' chemicals from public disclosure
By Jeremy Fugleburg
Casper Star-Tribune
Wednesday, August 24, 2011

CASPER, Wyo. -- Wyoming regulators have agreed to keep secret the identities of 146 chemicals used in hydraulic
fracturing since disclosure rules went into effect nearly a year ago, according the the state's oil and gas supervisor.

The Wyoming Oil and Gas Conservation Commission granted the trade secret exemptions to 11 companies, said Tom
Doll, commission supervisor.


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It's the the first release of the number of exemptions since state rules regarding hydraulic fracturing, or fracking, went
into effect in September.

Doll, who released the numbers at the Petroleum Association of Wyoming's annual meeting in Casper on Wednesday,
said no company has requested blanket exemptions for all chemicals.

"It's just been steady requests, a few a month," he told the Star-Tribune after his presentation.

According to the commission's website, the companies that received the exemptions were CESI Chemical Inc., Nalco Co.,
CalFrac Well Services Corp., Multi-Chem Group LLC, Baker Hughes, Halliburton Energy Services Inc., BJ Services Co., Core
Lab Reservoir Optimization, SNF Inc., Spectrum Tracer Services, and Water Mark Technologies Inc.

Wyoming's open records law includes an exemption for trade secrets. Under the state's regulations, companies may
request that the Oil and Gas Conservation Commission classify the identity of a chemical used in fracking as a trade
secret.

If state regulators agree, the chemical's identity is kept secret. If not, regulators release the chemical's name to the
public.

Fracking is used to develop nearly all oil and gas wells in the state.

Wyoming's fracking fluid disclosure rules, the first of their kind in the nation, have attracted concern from
environmental groups and some landowners in the state who are worried about the identity and concentration of
chemicals used in the process and fear such chemicals could pollute drinking water.
Some have advocated for complete disclosure of all chemicals used in fracking, in which water, sand and chemicals are
pumped underground to fracture formations and allow oil and gas to flow.

Doll, the Oil and Gas Conservation Commission supervisor, said 37 percent of the exempted chemicals are used as
tracers in fracking fluid to show the reach of the underground fractures.
Such chemicals -- at a cost of thousands of dollars -- provide a tell-tale signature that could help prove or disprove claims
that fracking harms drinking water supplies, he said.

"If you didn't care if that frack went up or out, you wouldn't be spending that kind of money," he told members of the
state's petroleum association. "So I think that's a good story."

Another 50 percent of the chemicals are used in the mix pumped underground to fracture the formations, Doll said.

John Robitaille, a vice president of the Petroleum Association of Wyoming, said he was surprised that so many of the
exempted chemicals were used as tracers. He said the number indicates that the state has tight qualifications for the
exemption that are not easily obtained.

I think the law is very clear on what is and what is not allowed under those types of situations, and I think that's very
helpful," he said. "So in those instances, it's very easy for the company to review that law and say, 'I think I have a case
or I definitely do not have a case.'"

Doll recalled that he has rejected exemption requests from two companies to date. Neither resubmitted those requests.

"I think they realized they didn't meet our criteria," he said.




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Smart Grid Technology

A number of states have passed legislation this year regarding the use and adoption of smart grid technology:

Maines legislature passed HB 563 which requires the states Public Utilities Commission to establish terms and
conditions to govern smart meter installation. The terms must allow customers, at no cost, to opt out of
wireless smart meter installation or have a smart meter removed. Customers, at no cost, must also be given the
option of a wired smart meter.

Mississippi passed legislation, SCR 664 and HCR 120 urging all state agencies to define the smart grid for the
purposes of creating jobs and encouraging customer energy savings in the state.

In Oklahoma HB 1079 was enacted which creates the Electric Utility Data Protection Act, stating that smart grid
and smart meter technologies can provide substantial benefits to consumers and the environment, including
reducing energy costs, increased efficiency, and increased grid reliability. This bill requires utilities to provide
customers with reasonable access to customer information, maintain confidentiality, and provide standard
usage data to a customer upon request.


Federal Action

Environmental Protection Agency (EPA)
Several EPA regulations have been proposed or promulgated which will have major impacts on energy production,
prices, and environmental regulations in the states:

EPAs Backdoor Energy Tax: EPA is currently regulating new and modified stationary sources for greenhouse gas
emissions under the Clean Air Act. This backdoor climate change regulation could increase the cost of gasoline and
electricity by 50 percent. It could also decrease private investment by $75 billion per year and destroy 1.4 million jobs.

The Coal Tax: EPA is considering re-categorizing coal ash as a hazardous substance.5 This would greatly increase the cost
of disposing coal ash and would eliminate it as an ingredient in common goods such as cement, drywall, kitchen
counters, and even bowling balls. The Electric Power Research Institute estimates the cost of this regulation over the
next two decades at $77 billion most of which would be passed along to consumers.

The Boiler Tax: EPA recently finalized new Maximum Achievable Control Technology (MACT) standards for industrial and
commercial boilers and heat processors.7 This new rule will require the upgrade or replacement of 200,000 boilers
located in factories, chemical facilities, hotels, schools, and churches around the country.8 Initial analysis projects the
rule will cost $11 billion9 in new capital costs and put at risk over 200,000 jobs across the country.

The Cement Tax: In September 2010, EPA finalized new MACT standards for cement kilns. These stringent new
regulations likely will force more than 15 percent of the nations cement plants to close, costing 15,000 jobs and $27
billion in lost GDP and increasing cement imports by 28 million tons.

The Utility Tax: In March 2011, EPA issued new draft MACT standards for coal-burning power plants.12 Additionally, in
July 2010, EPA proposed a new Clean Air Transport Rule, which would increase regulatory requirements on many power
plants in the East and Midwest.13 Combined, these new rules could cost up to $100 billion and eliminate up to 60
gigawatts of coal power roughly 20 percent of nationwide coal-fired power capacity.

New Emissions Regulations for Energy Producers: Last year EPA announced it will propose new source performance
standards for greenhouse gas emissions from power plants and refineries by the end of 2011. These new regulations

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would impose significant new costs on energy producers and consumers while providing environmental benefits that are
uncertain at best.

Costly New Water Intake Rules of Power Plants and Factories: In March 2010, EPA proposed new Clean Water Act
Section 316(b) water intake rules for more than 1,200 power plants and factories.19 These regulations are expected to
retire or eliminate more than 40 gigawatts of coal, oil steam, gas steam, and nuclear power and increase energy
production costs by 25 percent much of which would be passed onto consumers.


Offshore Energy Development Revenue Sharing
In July, the Governors of Alabama, Alaska, Louisiana, Mississippi, South Carolina, and Virginia signed a letter to United
States Senate Energy and Natural Resources Committee Chairman Jeff Bingaman (D-NM) and Ranking Member Senator
Lisa Murkowski (R-AK) supporting revenue sharing from energy generation and production in the Outer Continental
Shelf (OCS). The proposed legislation, S917, would have permitted coastal states to take in 37.5 percent of offshore-
energy production revenues from fiscal 2019 onward, capping the total amount available to the states at $500 million
per fiscal year. It would ensure that 20 percent of each states share be allocated to certain coastal communities. The
Murkowski amendment failed in Committee, 10-2 on July 21.


Bills in the 112
th
Congress
HR 910
Energy Tax Prevention Act of 2011
Sponsor: Upton (R-Mich.) Cosponsors: 95 Total (3 Democrats, 92 Republicans) Official Title: A bill to amend the Clean Air
Act to prohibit the administrator of the Environmental Protection Agency from promulgating any regulation concerning,
taking action relating to or taking into consideration the emission of a greenhouse gas to address climate change, and
for other purposes.

Introduced: March 3, 2011 Last Major Action: April 8, 2011 Received in the Senate and referred to the Senate
Environment and Public Works Committee. Congressional Record p. S2346

S 482
Tax Prevention Act of 2011
Sponsor: Inhofe (R-Okla.) Cosponsors: 44 Total (1 Democrat, 43 Republicans) Official Title: A bill to amend the Clean Air
Act to prohibit the administrator of the Environmental Protection Agency from promulgating any regulation concerning,
taking action relating to, or taking into consideration the emission of a greenhouse gas to address climate change, and
for other purposes.

Introduced: March 3, 2011 Last Major Action: March 3, 2011 Read twice and referred to: Senate Environment and
Public Works. Congressional Record p. S1219

HR 2401
A bill to require analyses of the cumulative and incremental impacts of certain rules and actions of the Environmental
Protection Agency, and for other purposes.

Sponsor: Sullivan (R-Okla.) Cosponsors: 44 Total (4 Democrats, 40 Republicans) Introduced: June 24, 2011
Last Major Action: Sept. 20, 2011 Rules Committee resolution, H Res 406, reported to the House as a rule for HR
2401.

Scheduled Action: Sept. 22, 2011 Scheduled action House floor consideration and debate.


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Chapter 4: Reforming Health Care
The health care debate in the United States has intensified as the federal government starts to implement the beginning
stages of PPACA. Medicaid and other programs that are impacted by PPACA will be of constant discussion and concern
among Republican Governors.

The first and best step toward a successful Medicaid transformation is repealing the PPACA and replacing it with market-
based, common sense reforms to our health care system. As discussed earlier in this document, true health care reform
cannot be done in a silo or only through Medicaid. For example, reform of the tax code is essential to true reform of our
health care system.

All components of the health care system should be part of the reform efforts. Regardless of the outcome of the PPACA
debate, Medicaid must be transformed not just reformed around the edges or managed through the cumbersome and
outdated waiver process. If the PPACA is upheld by the Supreme Court, it will be essential to have a Medicaid program
that taps into the innovation that states have been known for throughout the history of the Medicaid program.
Therefore, it is imperative that the system be modified immediately to assist states with their current programs. Below
are seven principles that Republican Governors believe will move us in the right direction:

Principle #1: States are best able to make decisions about the design of their health care systems based on their
respective needs, culture and the values of each state.

Principle #2: States should have the opportunity to innovate by using flexible, accountable financing mechanisms that
are transparent and hold states accountable for efficiency and quality health care. Such mechanisms may include a block
grant, a capped allotment outside of a waiver, or other accountable and transparent financing approaches.

Principle #3: Medicaid should be focused on quality, value-based purchasing and patient-centered programs that work
in concert to improve the health of states citizens and drive value over volume, quality over quantity, and, at the same
time, contain costs.

Principle #4: States must be able to streamline and simplify the eligibility process to ensure coverage for those most in
need, and states must be able to enforce reasonable cost sharing for those able to pay.

Principle #5: States can provide Medicaid recipients a choice in their health care coverage plans, just as many have in
the private market, if they are able to leverage the existing insurance marketplace.

Principle #6: Territories must be ensured full integration into the federal health care system so they can provide health
care coverage to those in need with the flexibility afforded to the states.

Principle #7: States must have greater flexibility in eligibility, financing and service delivery in order to provide long-term
services and support that keep pace with the people Medicaid serves. New federal requirements threaten to stifle state
innovation and investment. In addition, since dual eligibles (individuals who are eligible for both Medicare and
Medicaid) now constitute 39 percent
45
of Medicaid spending, Medicare policies that shift costs to the states must be
reversed, and the innovative power of states should be rewarded by a shared-savings program that allows full flexibility
to target and deliver services that are cost effective for both state and federal taxpayers.




45
Kaiser Commission on Medicaid and the Uninsured, Dual Eligibles: Medicaids Role for Low-Income Medicare Beneficiaries, The
Henry J. Kaiser Family Foundation, May 2011, http://www.kff.org/medicaid/upload/4091-08.pdf


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Featured states and programs in this chapter include:

INDIANA Governor Mitch Daniels, Healthy Indiana Program

UTAH Governor Gary Herbert, The Utah Health Exchange

LOUISIANA Governor Bobby Jindal, Louisiana Health First

LOUSIANA Governor Bobby Jindal, Healthcare Accomplishments: Governor Jindals First Term

MAINE Governor Paul LePage, Reforming Maines Costly Healthcare System

TEXAS Governor Rick Perry, Texas Health Care Compact

IDAHO Governor C.L Butch Otter, State- Based Health Care Exchange

MISSISSIPPI Governor Haley Barbour, Improving Services and Streamlining Costs

Federal Action

INDIANA
Governor Mitch Daniels
Healthy Indiana Program

The Healthy Indiana Plan is a consumer-driven health care plan for uninsured Hoosiers between the ages of 19-64. The
program began enrollment in January 2008, and operates under an 1115 demonstration waiver from the Centers for
Medicare and Medicaid services (CMS).

Who Is Covered?

Eligibility Requirements:

1. Earn less than 200% of the federal poverty level (FPL). A single adult earning less than $22,000 or families of four
earning less than $44,000 likely meet the basic financial requirements.

2. No access to employer sponsored health insurance coverage.

3. Uninsured for the previous six months.

Enrollment as of 9/30/11 was 40,768. HIP has served 77,466 Hoosiers since it began in 2008.

Plan Structure

A POWER (Health Savings Account) Account valued at $1,100 per adult. Contributions to the account are made by the
State and each participant (based on ability to pay). No participant pays more than 5% of his/her gross family income.

Sliding scale for individual contributions (based on % of gross family income):

0-100% FPL: 2%
100%-125% FPL: 3%
125%-150% FPL: 4%

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150%-200% FPL: 4.5%- 5% (Caretaker relatives/ parental adults in this income bracket contribute 4.5%, and the
childless adults contribute 5%)

No co-pays except for non emergency use of the ER.
Providers are reimbursed at Medicare, not Medicaid, rates.

If all age and gender appropriate preventive services are completed, all (State and individual) remaining POWER Account
funds will rollover to offset the following years contribution. If preventive services are not completed, only the
individuals prorated contribution (not the States portion) to the account rolls over.

Program Results & Personal Responsibility

Lower ER Use:

During the first 12 months of enrollment non-emergent utilization of the ER by HIP enrollees decreased by 14.8%.

High Generic Drug Utilization:

HIP generic drug utilization: 80%
Comparable commercial population: 65%

High Use of Preventative Care:

80% of HIP enrollees complete the preventive services required for POWER account rollover.

Strong Personal Responsibility:

97% of members made their required POWER account contributions during program during the first two years of the
program. Individuals can be removed from the program for failure to make POWER Account contributions within 45
days. Once removed from the program, an individual may not re-enroll for 12 months.

Enrollees are required to complete an annual redetermination. 85% of HIP enrollees submitted their
redetermination packets on-time in the first two years of the program. This number rose to 96% in demonstration
year three.

High Member Satisfaction

94% of HIP participants surveyed said they are satisfied with the program, and 99% of respondents indicated that
they would re-enroll in the program.



UTAH
Governor Gary Herbert
The Utah Health Exchange

The overarching philosophy of Utahs approach to health reform is that the invisible hand of the marketplace, rather
than the heavy hand of government is the most effective means whereby reform may take place. The Utah Health
Exchange is part of Utahs overall health system reform effort and is designed to enhance consumer choice and the
ability of the private sector to meet consumer needs.


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The Exchange formally opened in August 2009 for the individual/family product market as well as a limited launch for
the small group market. A full launch of the small group market and a pilot version for the large group market took place
in September 2010.
What is the Exchange?
The exchange is an internet-based information portal. It connects consumers to information they need to make an
informed choice, and in many cases allows them to execute that choice electronically.

Why do we need an exchange?
Utahs approach to health system reform is to move toward a consumer-based system, where individuals are
responsible for their health, health care, and health care financing. A major step in that direction is the development of a
workable defined contribution system.

The Exchange is a critical component in moving towards a consumer-based system. For example, in order for a defined
contribution system to function efficiently, consumers need a single shopping point where they can evaluate their
options and execute an informed purchasing decision. For a consumer-based market to succeed, brokers, agents,
employers, and individuals must have access to reliable information to allow consumers to make side-by-side
comparisons of their options.

What is the overall goal of the Exchange?
The overall goal of the Exchange is to serve as the technology backbone to enable the implementation of consumer-
based health system reforms.
How does the Exchange accomplish that goal?
To accomplish this goal, the Exchange has three core functions:
1. Provide consumers with helpful information about their health care and health care financing,
2. Provide a mechanism for consumers to compare and choose a health insurance policy that meets their families needs
3. Provide a standardized electronic application and enrollment system

Doesn't this exist already in the private sector?
It could be argued that the information that a consumer needs exists in the present system, however, Utah is missing
two key elements. In order for consumerism to really take hold, A system needs to be created where the information is
available in a standardized format that allows comparisons and is located at a single shopping point.

Why did Utah choose to go with an exchange model?
Utahs approach to health system reform relies on the fundamental principles of personal responsibility, private
markets, and competition. To promote competition in the health care system, consumers need three things accurate
and relevant information, real choice, and the opportunity to benefit from making good choices. The exchange model
enhances private competition in the health care system by providing all three elements of increased competition.
In addition to the benefits to the consumer, the exchange model also offers relief to employers who will no longer need
to bear the full burden of running a health plan for their employees.

What is unique about Utahs approach?
Utahs approach to developing an exchange is unique in that it builds on existing technology instead of starting from
scratch. This allows the state to incorporate and build on private solutions. Utahs approach is also designed to support
the existing roles of entities in the health system, including insurers, producers, and health care providers.

What is a defined contribution market?
When it comes to employment-based health insurance, Utah recognizes that the traditional approach to purchasing a
group plan is not consistent with our underlying philosophies of health system reform. In 2009, Utah created a new
defined contribution market for health insurance. In this market, employees choose their own insurance company,
network, and benefit structure and employers simply decide how much to contribute toward the employees policy. It is

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apparent that while this market greatly enhances consumer choice and competition among insurers, it is also a more
complicated system with many more people needing information than in the traditional group market.

What functions can the Exchange actually do now?
At present, the Exchange is ready and able to support the new defined contribution market for Utahs small employers.
The Exchange serves as the technology backbone that makes such an innovative market possible. The Exchange has the
capacity to handle employer enrollment, communicating information to insurers about risk, compiling and displaying
price information to employees, executing the employees enrollment in their choice of plan, and facilitating the
collection and distribution of premiums. The end result is that employees have the necessary information and
purchasing power to make an informed health insurance choice.

In addition to supporting the defined contribution market, the exchange also supports consumer choice in the
traditional individual market. In this regard, the primary role of the Exchange is to connect consumers with private
companies that can help them identify and purchase the product they need. On the Exchange, consumers are given
three options to shop for and buy a policy use a private online shopping service, buy direct from a participating
insurer, or search for an agent to get in-person assistance. Currently, there are four private online shopping services, five
insurers and hundreds of agents available through the Exchange.

Where will the Exchange take us in the future?
It is important to remember that a robust Exchange will be more than just a place to apply for health insurance. While
the initial focus of setting up the Exchange has been to establish a stable defined contribution market, this is just the
first stepping stone in the process toward a consumer-oriented system.

In order to facilitate consumer choice in the long run, it is clear that the Exchange must provide information that is
relevant to not only health care financing but also quality and transparency of the health care system. The Exchange will
also evolve into a tool for patients to make better decisions about their health and health care by providing access to
information about cost and quality and health and wellness.

The value of the Exchange is the sum of all its parts and each part is essential to the long term success of the exchange
and to the success of Health System Reform.

Press

Feds give Utahs Medicaid overhaul mixed reviews
BY KIRSTEN STEWART
The Salt Lake Tribune
First published Sep 19 2011 03:20PM
Updated Sep 19, 2011 11:46PM
Utahs plan for reforming Medicaid is getting mixed reviews from the Obama administration.
Like many states, Utah is looking to redesign its Medicaid program to contain costs. A blueprint submitted in July for
federal approval calls for moving Medicaid patients into managed care networks that would pay providers to keep
patients healthy, instead of for more tests and treatment.
The meat of the proposal its payment reforms has been well received, said Utah Medicaid Director Michael Hales.

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But officials with the Centers for Medicare and Medicaid Services (CMS) have indicated they dont support a
controversial provision that would impose higher co-payments and deductibles on pregnant women and children
enrolled in the low-income insurance program.
The charges $40 deductibles and co-payments ranging from $15 for inappropriate use of emergency rooms to $220
for hospital stays would far exceed whats allowed now. They are supposed to encourage patients to take
responsibility for their health, but national child advocacy groups fear they will cause some to forgo needed care.
The feds have said Utah can charge more for bad behavior like misusing an ER and less for good behavior, such as
quitting smoking, but those charges cant go above the current maximum, explained Hales. "Were still working on the
specifics, but theres not much hope for flexibility there."
Medicaid co-payments now hover at $3 to $5, which some doctors dont bother trying to collect.
Other elements causing heartburn, but still up for negotiation between federal and state officials during weekly phone
briefings:
The anti-trust implications of handing the sizeable state-federal program over to a small number of private providers
and insurers.
A proposal to ration benefits whenever growth in the states per capita Medicaid costs exceed growth in its general
fund, a burden that would be disproportionately felt by children who comprise the largest share of enrollees, but who
cost the least to cover.
A surprise late addition that would allow eligible Utahns to forgo Medicaid in favor of subsidies to purchase private
health policies on the states online marketplace, the Utah Health Insurance Exchange.
Utahs request is still likely months away from getting the final thumbs up or thumbs down a time frame that
frustrates Gov. Gary Herbert.
In a guest editorial published last weekend in The Salt Lake Tribune , Utahs Republican governor bemoaned the pace of
CMS in taking three years to reject upgrades to the states Premium Partnership for Health Insurance, or UPP.
The program provides low-income working families with a subsidy to help them afford workplace insurance. It has been
plagued by low enrollment, initially because the grants were too small.
But even after lawmakers upped the grants, the program remained unpopular, partly because so few working poor have
access to employer-based coverage. As of July 31, 2011, it had only 233 enrolled, far shy of the cap of 1,000.
To remedy that, the Utah Department of Health sought to allow families to use the subsidies to purchase individual
health plans on the open market. But doing so would have locked their kids out of the Childrens Health Insurance
Program (CHIP), one reason for the Aug. 26 rejection by CMS chief Donald M. Berwick.









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LOUSIANA
Governor Bobby Jindal
Louisiana Health First
On November 14, 2008, Governor Bobby Jindal and DHH Secretary Alan Levine announced details on Louisiana Health
First, an initiative to improve health outcomes in Louisiana and create a sustainable system of quality health care in the
state. The initiative focuses on:
Expand access to coverage.
Medicaid eligibility would be expanded to parents and caretakers of children living below 50 percent of Federal Poverty
Level (FPL) as well as those individuals diagnosed with a chronic disease. Both groups would be allowed to use their
health insurance premiums toward employer sponsored insurance, and if no such insurance was available, individuals
would be covered by Louisianas CHIP program or existing state health plan.
Medicaid eligibility would also be expanded for all individuals living below 200 percent FPL in Region 5 (the Lake Charles
area which has the highest rate of uninsurance in the state). Individuals in this region who earn between 200 and 350
percent FPL would be able to buy into the program with their contribution matched by federal funds on a sliding scale
based on income.

Create a medical home-based system of care.
The Health First plan proposes to establish a number of Coordinated Care Networks (CCN) that will unite the now
disparate efforts of primary care providers, specialists, and hospital providers into an integrated medical home for all
Medicaid recipients. Similar to other proposed medical home models, the Health First Plan calls for the CCNs to allow for
more choice between health plans, offer enhanced benefits for healthy behavior, allow the CCNs to negotiate
reimbursement rates directly with providers, use electronic medical records to improve coordination and move to a
system where networks will be rewarded based on quality of care rather than volume of care, among other features.

Create an academic medical center
The Health First Plan aims to compete nationally for medical residents, faculty, and researchers by constructing an
academic medical center in New Orleans with investments in new equipment and research. The medical center would
be run on a community-based, not for profit model, in collaboration with Louisiana State University and Tufts University.
The medical center, which is estimated to cost more than 1.2 billion dollars, will be funded by an appropriation by the
Louisiana Legislature, seeking reimbursements from FEMA for damage done to Big Charity Hospital during Hurricane
Katrina, and direct appeals to Congress for funding.
46









46
Bobby Jindal, Louisiana Health first, http://www.statecoverage.org/node/1820
http://www.dhh.louisiana.gov/offices/publications/pubs-349/LaHlthFrst_WhitePpr_11_14.pdf


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LOUSIANA
Governor Bobby Jindal
Healthcare Accomplishments in Governor Jindals First Term

Privatize In-Patient Residential Treatment Programs
When Governor Jindal took office, the Department of Health and Hospitals reviewed the wait list of more than 309
people waiting for in-patient residential treatment facilities for addictive disorders and found that outpatient treatment
programs would better serve the majority of those on the waiting list.

In 2010, DHH transitioned the six remaining state-run residential substance abuse treatment facilities to private
providers. This resulted in 257 beds being transitioned at a savings of $2.5 million with no interruption or reduction in
services. Prior to the transition, private providers already ran 325 of 582 beds funded by the state.

A cost comparison showed the average cost was $142.32 per day for a state-run facility compared to $125.24 per day for
privately-run facility. There were 137 filled positions at the time of the transition. All contracted provides agreed to
interview current employees, and in most cases they were hired by the private entity.

Through this privatization effort, DHH was able to move 158 people off of the waiting list and get them the help they
needed while reducing government positions by 20 percent and pursuing other efficiencies to better serve clients. In
total, the privatization of these six in-patient residential treatment programs saved the state $2.5 million.

Privatize State-Run Group Homes & Services for Disabled
When Governor Jindal took office in 2008, Louisiana ranked 8th in the nation for its overall spending on individuals with
Developmental Disabilities. Louisiana spent $6.61 per $1,000 of personal income compared with the national average of
$4.12. Louisiana ranked 1st in the fiscal effort directed towards institutions spending 38 percent of expenditures on
the institutionalization of individuals with developmental disabilities compared to the national average of 19 percent.

The state spent double the national average on institutions for two reasons. First, according to the University of
Minnesota Institute on Community Inclusion, Louisiana has more individuals in ICF/DDs per capita than any other state
123.9 per 100,000 people, which is almost four times the national average of 32 per 100,000 people. Furthermore,
Louisiana ranked 3rd highest in the usage of large ICF/DDs although the literature shows that outcomes are better in
smaller facilities, and even better yet in the community setting. Second, the state spends half of these institutional
expenditures on state-run facilities rather than utilizing the capacity of privately operated facilities, which cost as much
as $100,000 per person per year less to operate.

DHH achieved cost savings while improving services for those with disabilities by moving individuals from high cost state
operated institutions that cost the state $600 or more a day to community based services (waivers) and private group
homes that average $191 per day in the private sector. The annualized savings for this initiative in FY 12 is $23.8 million.

DHH also saved $12.5 million annually by closing or privatizing several state-run group homes. In 2009, DHH accelerated
the transition of 31 state-run group homes serving 156 residents with developmental disabilities to the private sector.
The 2009 transition was a mix of closures, a movement of residents to privately-run group homes or waiver services as
well as turning over entire facilities to private providers. Both strategies proved successful for residents who have been
tracked and reporting a satisfaction rate of over 90 percent.

A cost analysis showed that the average daily cost per person for a state-run group home was $366 compared to $208
for a private home a nearly $60,000 different annually. When the transitions occurred, already more than 93 percent
of residents in group homes were served by private providers. The transition also resulted in a reduction in 336

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government positions. Employees were offered opportunities with the private providers and provided job training and
job search assistance.

Improve Health Care Services with CCNs
In the current Medicaid program, patients dont develop relationships with a primary provider and are less likely to go in
for wellness exams and receive care for chronic diseases. Through transitioning to Coordinated Care Networks, Louisiana
will contract with private companies to provide managed care to the states Medicaid population in a coordinated
network. CCNs will save the state an estimated $24 million in the upcoming fiscal year and $135.9 million in state
fiscal year 2013.

CCNs will create a health care community network through partnerships with physicians, hospitals, pharmacists and
others in the healthcare community and will link Medicaid patients to this health care provider network. The network is
responsible for coordinating Medicaid patients care with the goal of ensuring better access to primary and specialty
care, monitoring disease management and reducing unnecessary ER usage and hospitalizations. Medicaid recipients
choose their network and will be able to play a greater role in directing their health care.
CCNs will also decrease unnecessary ER visits and decrease waste, fraud and abuse. Average cost of an ER visit is $1,000
and Louisiana currently ranks third worse in the country for per capita ER use. This is much greater than the cost of a
visit to a primary care provider for the same symptoms. Better coordinating care can decrease unnecessary ER use.
Modernize Health Care Services
Governor Jindal established a public/private partnership between LSUs Earl K. Long and Our Lady of the Lake in Baton
Rouge, leveraging private resources to provide the best academic medical opportunities. With this agreement, the state
saved the cost of constructing a new facility - $400 million, or costs of renovating the existing Earl K. Long Medical
Center - estimated $175 million.

The partnership between these two facilities helps provide a higher standard of care. OLOL has more experience in
treating the poor based on Medicaid admissions - than Earl K. Long. In fact, total Medicaid admissions at OLOL were
more than 7,200 in 2009 making OLOL the largest private hospital serving Medicaid patients that isnt either a women-
only or children-only provider.
Our Lady of the Lake Hospital will now have a Level 1 Trauma Center to provide the highest levels of emergency and
trauma services around the clock, with the most experienced physicians. The Trauma Center will also provide LSU
Medical Residents with world-class training and tremendous opportunities for students in every aspect of medical
science.
According to the analysis performed by LSU and OLOL, in FY 2008, 63% of the ER visits at Earl K. Long were non-
emergent. Under this new agreement, LSU will work to ensure maximum use of an Urgent Care Facility and other
outpatient clinics as a more cost-effective approach to providing non-emergent care for these same patients.
In New Orleans, Governor Jindal negotiated an historic agreement between LSU and Tulane to create a private board
governance structure for the New Orleans Charity hospital, harnessing the ingenuity and resources of the private sector
through public and private partnerships. We have broken ground on the new facility that will share facilities with the
New Orleans VA Medical Center.

Improve Access to Health Care in New Orleans
After Katrina, a series of community clinics opened in New Orleans to serve the uninsured. Originally funded by a Katrina
recovery grant, the community clinics, which served nearly 300,000, were threatened with no funding after the 3-year
period of the grant.

To ensure continued access to care, the Governor committed $32.5 million in Community Development Block Grant

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(CDBG) funds and secured approval from the Centers for Medicare and Medicaid Services (CMS) for a Medicaid
demonstration waiver, effective October 1, 2010 through December 31, 2013, that will use $97.5 million of
Disproportionate Share Hospital (DSH) funding to support a patient-centered medical home model serving the
uninsured, low-income adult population.

Today, the GNOCHC network includes 18 organizations operating 38 sites in Orleans, St. Bernard and Jefferson parishes.
As of September 24, 2011, DHH certified 28,204 eligible individuals to receive coverage and services through the
GNOCHC waiver. These individuals have access to services including primary care, preventive care, behavioral health
care, immunizations, radiology and specialty care services throughout the Greater New Orleans area. Since October 1,
2010, $16.5 million has been paid out to GNOCHC providers for services rendered.

Make Health Care Information Available Online
The Governor signed the Consumers Right to Know Act (ACT537) in the 2008 Regular Legislative Session, which called
for the creation of the Louisiana Health Finder website (www.HealthFinderLA.gov). The website was launched on
February 2nd, 2010 and offers information on hospitals, nursing homes, health plans, and prescription drug prices. The
site was enhanced in June 2010 with the addition of dialysis facilities, home health agencies and an interactive map of all
licensed providers.

For the first time in the states history, Louisiana residents are now empowered to take charge of their own health care
decisions through online tools that give consumers clear, reliable information about the cost, performance and quality
of the health care providers they depend on. Data sources include CMS Compare, NCQAs HEDIS measures, Medicaid
usual and customary prescription drug prices, and hospital inpatient discharge data.

CONSERVATIVE REFORMS IN SOCIAL SEVICES

Streamline Department of Children and Family Services
The Department of Children and Family Services (DCFS) implemented the largest reorganization of a state agency in 25
years estimated to save $25.5 million. DCFS reduced offices in the state from 157 to 90, saving a total of $2.7 million.
DCFS also streamlined staffing by implementing a policy of eight staff persons to each manager, in order to eliminate
unnecessary positions.

Improve Care for At-Risk Children with the Coordinated System of Care
The Department of Children and Family Services, the Office of Juvenile Justice, the Education Department and the
Department of Health and Hospitals are developing a Coordinated System of Care the Louisiana Behavioral Health
Partnership that will offer an integrated approach to providing services for at-risk children. This system made Louisiana
one of the first states in the nation to formally bring together the leadership of all child service agencies to form a
statewide Coordinated System of Care for youth with significant behavioral health needs estimated to help 1,200
young people in the first six months of implementation and 2,400 young people in the first full year. This historic reform
will also save the state total an estimated $16.3 million through fiscal year 2013.


MAINE
Governor Paul LePage
Reforming Maines Costly Healthcare System
During the 2011 legislative session, after the 2010 elections had produced Republican Governor Paul LePage and
Republican control of both legislative chambers for the first time since 1964, health care reform was again on the
agenda. A group of Republican legislators and health system stakeholders began developing a comprehensive health

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care reform package.
47
Their work was guided by Maines past experience, focused on what would most help Maines
citizens and small businesses, and mindful of the constraints imposed by Obamacare. On the last point, given Maines
history of failed health care reforms, they did not want to risk further uncertainty and market instability by enacting
measures that directly contravened Obamacare. With minor modifications, the proposal developed by this working
group was ultimately passed as Legislative Document (LD) 1333, which became Public Law 90.
48

The 2011 Maine reform includes five major provisions:
1. Guaranteed access to reinsurance funding only for high-risk individuals,
2. Individualized pricing for affordable options,
3. Purchase of insurance across state lines,
4. New options for businesses joining together, and
5. New options for long-term unemployed.
http://www.heritage.org/research/reports/2011/07/health-care-reform-in-maine-reversing-obamacare-lite
http://www.dirigohealth.maine.gov/Documents/LD1498.pdf

Press
Maine Republicans say they will end 'Dirigo' health care experiment
By Pamela M. Prah, Stateline Staff Writer

Before there was a federal health care overhaul, and before there was a Massachusetts law to use as a model for the
national plan, there was Dirigo. Thats what Maine called its first-in-the-nation attempt at achieving universal health
coverage when Democrats approved the plan back in 2003.
Now, the Maine program may be one of the first casualties of the Republican landslide in state capitals. Maines
incoming governor, Paul LePage, pledged during the campaign to repeal and replace the plan, which is Latin for I
lead and is the states motto. Republicans also took control of the Maine House and Senate, making the state one of
only two to flip from total Democratic control to total control by Republicans (Wisconsin was the other).
Dirigo was the brainchild of outgoing Governor John Baldacci, who sought to dramatically increase coverage for the
uninsured while lowering the costs associated with hospital care. A key to the program was encouraging small
businesses to buy coverage for their employees by making plans affordable and subsidizing coverage for individuals and
families on a sliding scale based on income.
But the program faced battles over funding from the start. In 2007, Maine capped enrollment for two years until
lawmakers could agree on a funding fix. The problem was further complicated when voters in 2008 rolled back the tax
on soda and alcohol that the Legislature figured would pay for Dirigo. Even its supporters admit the program has never
lived up to its promise of serving as many as 180,000 of Maine's 1.2 million residents by 2009.
LePage, a Tea Party favorite, has called Dirigo a costly failure. He claims taxpayers have spent more than $160 million
to cover just 3,400 uninsured Mainers under the program. Baldaccis administration disagrees with that portrayal,

47
This group included Republicans from the legislative leadership; representatives from the governors office and Department of
Professional and Financial Regulation (which includes the Bureau of Insurance); the Attorney Generals office; health providers;
health insurers; health insurance brokers; health policy experts (including the authors); and representatives of the business
community.
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An Act to Modify Rating Practices for Individual and Small Group Health Plans and to Encourage Value-Based Purchasing of Health
Care Services, L.D. 1333, 125th Maine Legislature, 2011, at
http://www.mainelegislature.org/legis/bills/bills_125th/chapters/PUBLIC90.asp (July 11, 2011).

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arguing that since it began, Dirigo has covered more than 32,000 people without using any general fund dollars to pay
for it.
Under a complicated funding arrangement, Dirigo is funded 50 percent by the savings offset payment from private
insurance companies. Thats the amount the state figures insurers are saving because the uninsured arent seeking
emergency care they cant pay for. The rest of the funding comes from premiums, the federal government and tobacco
settlement dollars.
Once seen as a model

According to Jon Reisman, associate professor of economics and public policy at the University of Maine at Machias,
Dirigo probably would have been the model used had the public option survived last years contentious health care
debate. Instead, the Obama administration looked to Massachusetts, which relied on a more market-based approach.

One of Dirigos harshest critics has been Tarren R. Bragdon, who is now a co-chair of LePages transition team and was
quoted in The New York Times as saying that under LePage, Dirigo will be Diri-gone. Bragdon, a former state
representative, is chief executive officer of the Maine Heritage Policy Center, which describes itself as formulating
innovative and proven conservative public policy.

Any changes to Dirigo, let alone outright repeal, will have to come from the state Legislature. It looks as though LePage
will have support for a Dirigo overhaul in the statehouse. Republicans will enjoy complete control of state government in
Maine for the first time since 1962.The incoming state Senate president, Kevin Raye, has called Dirigo by every
measure, a failure.

The election result in Maine represents a dramatic turn in Dirigos fortunes. Not long ago, Baldaccis plan was held up by
many in Congress as a possible blueprint for national health care reform.
With Maine facing a nearly $1 billion budget deficit for next year, Michael Franz, a Bowdoin College political scientist,
predicts Dirigo will be repealed in the name of budget cuts. But he questions the long-term consequences. If health
care services for the poor are scaled back for short-term budget balancing, this will shift more care into the ER, outside
the health insurance system and run up costs in the long-run, he says.
Trish Riley, director of Baldacci's Office of Health Policy and Finance, told The Portland Press Herald that if Dirigo is
eliminated, the state will either have to cut 6,700 people off Medicaid, or the general fund would have to come up with
the roughly $6 million.

State may join lawsuit

In addition to dumping Dirigo, theres a chance a GOP-led Maine will no longer sit on the sidelines as some 20 other
states line up to challenge the new health care law. In Maine, the Legislature, not voters, selects the attorney general.
That will occur shortly after the newly elected lawmakers are sworn in and the legislature convenes December 1.
LePage, the mayor of Waterville, has come out against the federal health care law. On the campaign trail, he famously
said that if he were elected, voters would see a lot of him on the front page, saying Governor LePage tells Obama to go
to hell.
Brian Duff, a University of New England political scientist, says Maine, through Dirigo, was at the forefront of health care
reform and moved the issue forward. One of the great features of American politics, he says, is that states take bold
steps in policy and then we see how far it goes. Now we have ideas, but at the end of the day, theres not a lot of
passion for Dirigo.

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Contact Pamela M. Prah at pprah@stateline.org http://www.stateline.org/live/details/story?contentId=529302


TEXAS
Governor Rick Perry
Texas Health Care Compact

In 2011 Governor Rick Perry Signed into law a measure that would eventually allow Texas to enter into a health care
compact with other states to seek flexibility in operating Medicare and Medicaid.

THE HEALTH CARE COMPACT
The Constitution established a federal government, but with limited and enumerated powers, and reserved to the states
or to the people those powers not granted to the federal government. One power that properly belongs at the state
level is the power to regulate Health Care. However, the federal government has preempted state action in this area.
The Health Care Compact is an interstate compact which is simply an agreement between two or more states that is
consented to by Congress that restores authority and responsibility for health care regulation to the member states
(except for military health care, which will remain federal), and provides the funds to the states to fulfill that
responsibility.

The Health Care Compact does not conflict with the efforts by state attorneys general, state legislators and members of
congress to repeal or modify the health care bill.

The Elements of the Health Care Compact

Pledge: Member states agree to work together to pass this Compact, and to improve the health care in their respective
states.

Legislative Power: Member states have primary responsibility for regulation of all non-military health care goods and
services in their state.

State Control: In member states, states can suspend federal health care regulations. Federal and state health care laws
remain in force in a state until states enact superseding regulations.

Funding: Member states get an amount of money from the federal government each year to pay for health care. The
funding is mandatory spending, and not subject to annual appropriations. Each states funding is based on the federal
funds spent in their state on health care in 2010. Each state will confirm their funding before joining this Compact. This
funding level will be adjusted annually for changes in population and inflation.

Commission: An advisory commission is created to gather and publish health care cost data, study various health care
issues, and make non-binding recommendations to member states.

Amendments: Member states can amend this Compact with approval of the members, and no further Congressional
consent is needed.

Withdrawal: Any member state can withdraw from this Compact at any time.
49


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Pat Hartman, Texas Gov Perry Signs Health Care Compact, 3 Mar. 2011 http://healthcarecompact.org/texas-
governor-perry-signs-health-care-compact-law

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http://healthcarecompact.org/texas-governor-perry-signs-health-care-compact-law
Press

Gov. Rick Perry signs health care reform bill into law; Texas fourth state to pass health care compacts bill

With the signature of Gov. Rick Perry today, Texas has joined three other states stating their intention to enter into a
health care compact.

The compact, which would challenge the authority of the federal government to dictate the terms of the federally and
state funded Medicaid program, was part of a wide-ranging health care reform bill, Senate Bill 7, passed by the Texas
Legislature in its recently concluded special session.

Georgia, Oklahoma and Missouri have already signed onto the compacts movement, with Missouri Gov. Jay Nixon
signing a bill into law on Thursday.

The law establishes Texas, along with the other three states, as pioneers in an uncharted use of Article 1, Section 10 of
the Constitution which allows states to enter into agreements that, with the approval of Congress, cannot be abridged
by the federal government. There are more than 200 state compacts currently in effect, nearly all of them related to
commerce.

Article 1, however, does not outline the terms by which Congress might be compelled to agree to a state health care
compact. Supporters are hoping to tip the balance in their favor as more states pass compacts laws.

Perry said the compacts language is an important part of a health care reform package the Legislative Budget Board has
estimated will save Texas $467 million.
Texas faces unique challenges when it comes to health care delivery, and Washingtons one-size-fits-all approach
doesnt fit our needs, Perry said. SB 7 provides state-based solutions to rising health care costs by providing millions in
savings, rewarding innovation and improving the health care of Texans.
Texas Rep. Lois Kolkhorst, R-Brenham, introduced the compacts bill as a separate piece of legislation and fought hard for
its passage in the special session after seeing it stall at the end of the regular period.
Health care spending crowds out funding for our schools, highways and public safety. That's why we need the health
care compact, Kolkhorst said. Texans need a bigger say in how our health dollars are spent, a government closest to
the people governs best."

Leo Linbeck III, a Houston businessman and one of the founders of the national Health Care Compacts Alliance, said
Texas has struck a blow for self-governance, giving Texans an opportunity to shape its own health care system.

Rather than forcing Texans to comply with a one-size-fits-all system designed by federal politicians and Washington
D.C. bureaucrats, the health care compact will bring those decisions back to Texas, Linbeck said. Americans want self-
governance, especially in health care.
http://www.texaswatchdog.org/2011/07/gov-rick-perry-signs-health-care-reform-compacts-bill-into-law-
texas/1311030688.column



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IDAHO
Governor C.L Butch Otter
State- Based Health Care Exchange

Governor C. L. "Butch" will allow the Idaho Department of Health and Welfare and Idaho Department of Insurance to
apply for federal grant funding to implement a health insurance exchange aimed at making health coverage more
affordable and accessible for Idahoans.

The Level One implementation grant offered through the federal Affordable Care Act will be for $30.9 million, primarily
for information technology. The deadline for applications is September 30. Idaho can withdraw from the process at any
time in the first phase of development without incurring any federal financial penalty.

The Governor's goal is to keep the State's options open so he and the Legislature can continue working together to
carefully and cost-effectively establish a marketplace portal for individuals and employers to access information about
health care coverage. The Internet portal would enable insurance plan shopping and comparisons, validate eligibility and
demographics, and enable insurance plan enrollment and payment. The plan would leverage existing State technical
systems through the Department of Health and Welfare.
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Press
AARP Commends Gov. Otter Stance on State Health Ins. Exchange
$40 Million Grant from Feds Would Pave Way for Hundreds of Thousands of Idahoans to Find Affordable Health
Insurance
BOISE, Idaho, Aug. 22, 2011 /PRNewswire-USNewswire/ -- The following is a statement by Jim Wordelman, State
Director for AARP in Idaho:
"The single top concern of Idaho's 50+ is the same concern that plagues hundreds of thousands of Idahoans of all age
groups, and many of the state's small businesses rising health care costs.
"Today, Governor C.L. 'Butch' Otter gave those Idahoans struggling with high health insurance costs a glimmer of hope
by making the case for applying for a $40 million federal grant to create a State-based Health Insurance Exchange to
help people and small businesses find health insurance that fits their needs and their pocketbooks. AARP strongly
supports the implementation of a state driven approach to the Exchange with strong consumer protections and
commends Governor Otter for his stand.
"Nearly half of Idaho's 50+ cited high health care costs their top challenge, with 51% worried about having to pay more
for health care, and 40% worried about financial devastation because of it. Roughly 234,000 Idahoans lack health
insurance.
"The creation of the Exchange would allow individuals, families and small businesses to find affordable health care by
giving them the same advantages large companies have when they negotiate group rates. The Exchanges also bring
greater transparency to the health insurance industry.
"With insight and feedback from consumers and consumer advocates, Idaho is in the best position to develop its own
exchange. By capitalizing upon its own strengths, finding solutions to its specific challenges, and providing a system that

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Jon Hanian, Governor Opts to Seek Federal Funding for Implementing state- Bases Health Exchange, Septmeber 19, 2011,
http://gov.idaho.gov/mediacenter/press/pr2011/prsept11/pr_053.html

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will work for and to the benefit of the consumer, Idaho has the potential to make a real difference in the lives of
consumers when it comes to finding and affording health insurance.
"AARP Idaho looks forward to working with the Governor, lawmakers and key decision makers to help Idaho move
towards the creation of a State Health Insurance Exchange that centers on the needs of Idahoans of all ages."
States have a September 30th deadline to apply for federal grants to set up the Exchanges. Under the Affordable Care
Act, states have until 2013 to show they will have a Health Insurance Exchange up and running within a year. If states
opt not to establish their own Exchanges, the federal government will run the Exchange for the state.
AARP's key issues and guidelines for establishing State Health Insurance Exchanges can be found here: www.aarp.org/ID.
AARP is Idaho's largest membership organization with over 180,000 members
http://www.reuters.com/article/2011/08/22/idUS211022+22-Aug-2011+PRN20110822

MISSISSIPPI
Governor Haley Barbour
Improving Services and Streamlining Costs


Mississippi fought Medicaid fraud by reconfirming eligibility through annual face-to-face visits. Mississippi now has
one of lowest fraud rates in the nation.

Mississippi provided an emphasis on preventative care. An annual physical does not count against Medicaid limits,
helping beneficiaries find a medical home.

Mississippi instituted a 2-to-1 brand generic drug limit for Medicaid beneficiaries and instituted a preferred drug list
which encourages the dispensing of generic drugs, saving the state millions in taxpayer funding.

Mississippi established MississippiCAN, a coordinated care program for Mississippi Medicaid beneficiaries, which is
improving access to and quality of medical services by providing support services for managing illnesses and
empowering beneficiaries. This approach is saving tax dollars through a more efficient healthcare approach.

Federal Legislation
H. R. 3590 Patient Protection and affordable Care Act
Summary of Coverage Provisions
The Patient Protection and Affordable Care Act was released on November 18, 2009 and was passed by the Senate on
December 24, 2009. The following summary explains key health coverage provisions in the legislation.

Individual Mandate
All individuals will be required to have health insurance, with some exceptions, beginning in 2014. Those who do not
have coverage will be required to pay a yearly financial penalty of the greater of $750 per person (up to a maximum of
$2,250 per family), or 2% of household income, which will be phasedin from 20142016. Exceptions will be given for
financial hardship and religious objections; and to American Indians; people who have been uninsured for less than

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three months; if the lowest cost health plan exceeds 8% of income; and if the individual has income below the poverty
level ($10,830 for an individual and $22,050 for a family of four in 2009).

Expansion of Public Programs
Medicaid will be expanded to all individuals under age 65 with incomes up to 133% of the federal poverty level ($14,404
for an individual and $29,327 for a family of four in 2009). This expansion will create a uniform minimum Medicaid
eligibility threshold across states and will eliminate a current limitation of the program that prohibits most adults
without dependent children from enrolling in the program today. Eligibility for Medicaid and the Childrens Health
Insurance Program (CHIP) for children will continue at their current eligibility levels until 2019. People with incomes
above 133% of the poverty level will obtain coverage through the newly
created state health insurance Exchanges.
The federal government will provide 100% federal funding for the costs of those who become newly eligible for
Medicaid for three years (20142016). In 2017 and 2018, states will receive an increase in the federal medical
assistance percentage (FMAP) based on current state eligibility levels for adults, and then beginning in 2019, all
states will receive the same FMAP increase. Different funding rules apply for Nebraska and certain states that
are not eligible for the increased FMAP because they have already expanded Medicaid eligibility.

American Health Benefit Exchanges
States will create the American Health Benefits Exchanges where individuals can purchase insurance and separate
exchanges for small employers to purchase insurance. These new marketplaces will provide consumers with information
to enable them to choose among plans. Premium and costsharing subsidies will be available to make coverage more
affordable.
Access to Exchanges will be limited to U.S. citizens and legal immigrants and subsidies will only be available to
those without other coverage or whose share of the premium for coverage offered by an employer exceeds
9.8% of their income. Small businesses with up to 100 employees can purchase coverage through the Exchange.
Although there will not be a public plan option in the Exchanges, the Office of Personnel Management, which
administers the Federal Employees Health Benefit Program, will contract with private insurers to offer at least
two multistate plans in each Exchange, including at least one offered by a nonprofit entity. In addition, funds
will be made available to establish nonprofit, memberrun health insurance COOPs in each state.
Plans in the Exchanges will be required to offer benefits that meet a minimum set of standards. Insurers will
offer four levels of coverage that vary based on premiums, outofpocket costs, and benefits beyond the
minimum required plus a catastrophic coverage plan.
Premium subsidies will be provided to families with incomes between 100400% of the poverty level (or $22,050
to $88,200 for a family of four in 2009) to help them purchase insurance through the Exchanges. These subsidies
will be offered on a sliding scale basis and will limit the cost of the premium to between 2% of income for those
between 100133% of the poverty level to 9.8% of income for those between 300 400% of the poverty level.
Costsharing subsidies will also be available to people with incomes between 100200% of the poverty level to
limit outofpocket spending.

Changes to Private Insurance
New insurance market regulations will prevent health insurers from denying coverage to people for any reason,
including their health status, and from charging people more based on their health status and gender. These new rules
will also require that all new health plans provide comprehensive coverage that includes at least a minimum set of
services, caps annual outofpocket spending, does not impose costsharing for preventive services, and does not impose
annual or lifetime limits on coverage (existing individual and employersponsored plans do not have to meet the new
benefit standards).
Health plan premiums will be allowed to vary based on age (by a 3 to 1 ratio), geographic area, tobacco use (by a
1.5 to 1 ratio), and the number of family members.
Health insurers will be prohibited from imposing lifetime limits on coverage and will be prohibited from
rescinding coverage, except in cases of fraud.
Increases in health plan premiums will be subject to review before they can be implemented.

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Young adults will be allowed to remain on their parents health insurance up to age 26.
States will be allowed to form health care choice compacts that enable insurers to sell policies in any state that
participates in the compact under a single set of rules.
Employers that impose a waiting period for health coverage of more than 60 days will be required to pay a
penalty of $600 per fulltime employee who is subject to the waiting period.

Employer Requirements
There is no employer mandate but employers with more than 50 employees will be assessed a fee of $750 per fulltime
employee if they do not offer coverage and if they have at least one employee who receives a premium credit through
an Exchange. Employers that do offer coverage but have at least one employee who receives a premium credit through
an Exchange are required to pay the lesser of $3,000 for each employee who receives a Premium credit or $750 for each
fulltime employee.

Employers that offer coverage will be required to provide a free choice voucher to employees with incomes
below 400% of the poverty level if their share of the premium cost is between 89.8% of income and who
choose to enroll in a plan in an Exchange. Employers that offer a free choice voucher will not be subject to the
above penalty.
Large employers that offer coverage will be required to automatically enroll employees into the employers
lowest cost premium plan if the employee does not sign up for employer coverage or does not opt out of
coverage.
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Chapter 5: Balancing State Budgets: Funding State Priorities and Living Within States Means

Budgets, more than ever, are driving state and federal policy. Republican governors are setting priorities and balancing
budgets by cutting spending. To the contrary, the Obama Administration continues to spend and spend, with little
regard to the enormous burden we are leaving to our children and grandchildren.
The Obama Administrations policies reflect this. From their cap and trade policy to healthcare reform and financial
regulatory reform, we continue to spend without correcting the problem: Costs.
We know that states must live within their budgets:

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http://www.kff.org/healthreform/upload/8023-S.pdf

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Consider:
-The Great Recession may have ended in August 2009 but states will take years to recover. According to the
National Governors Association (NGA), state revenues may not reach 2008 levels until late fiscal year 2012
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.
-From 1979 to 2007, state revenues grew at an average rate of 6.5 % each quarter from the year before, with
only a single quarter of negative growth. But recently this trend has reversed. Starting with the fourth quarter
of 2008 through the third quarter of 2009, state tax revenues declined an average of 10.7 percent each quarter,
with no indication at the start of 2010 that the bottom has been reached
53
.
- State expenditures have followed a similar but less volatile course. For a long period, between 1979 and 2007,
state spending grew at an average rate of 6.5 percent each year. Only once did it decline1983by less than
one percent. In contract, in 2009, general fund expenditures declined 3.4 percent from fiscal 2008 levels and
enacted budgets for fiscal year 2010 shows a 5.4 percent decrease from 2009. These decreases in general fund
expenditures represent the largest declines recorded in the last 30 years from surveys conducted by the
National Association of State Budget Officers
54
.
Today, states spend approximately 35 % of their general fund on K-12 education, 16.3 percent on Medicaid,
11.3% on higher education, 7 % on corrections, and about 28% on other areas such as public safety,
environmental and state employee salary and benefits
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.
For more information, please see the Fiscal Survey of States:
http://nasbo.org/LinkClick.aspx?fileticket=yNV8Jv3X7Is%3d&tabid=38
States featured in this chapter include:
PENNSYLVANIA, Governor Tom Corbett. 2011-2012 Budget Review
PUERTO RICO, Governor Luis Fortuno, Balancing the State Budget
OHIO, Governor John Kasich, Two Year State Budget
IOWA, Governor Terry Branstad, 2012 Budget Overview
INDIANA, Governor Mitch Daniels, Daniels Budgeting Record
LOUSIANA, Governor Bobby Jindal, Budgeting Under Governor Jindal
VIRGINIA, Governor Bob McDonnell, McDonnells Two Budgets
MISSISSIPPI, Governor Haley Barbour, Budgeting Under Barbour
TENNESSEE Governor Bill Haslam, Balancing the State Budget
NEW JERSEY Governor Chris Christie, Property Tax Cap and Reform Legislation


PENNSYLVANIA

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(The Big Reset, National Governors Association, February 2010,
http://www.nga.org/files/live/sites/NGA/files/pdf/1002STATEGOVTAFTERGREATRECESSION.PDF;jsessionid=852338014C5212901D3
2931298852C0A)
53
Id.
54
Id.
55
Id.

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Governor Tom Corbett
2011-2012 Budget Review

The 2011-2012 budget was enacted with no tax increases
The budget refocused the investment of tax dollars into the core functions of government including:
Adhering to fiscal discipline
Promoting limited, transparent and effective governing
Supporting free enterprise and job creation
Funding students and promoting educational excellence
Protecting public health and safety
And maintaining the human services safety net

The 2011-2012 General Fund budget was $27.15 billion- a decrease of $1.17 billion, or 4.1 percent, from 2010-2011.
Overall state spending was reset to 2008-2009 levels.

The budget eliminated 66 appropriation line items- cutting $822 in annual spending. It reduced funding for 226
appropriations and consolidates an additional 52 appropriations to streamline government.
Administrative spending was cut by 4 percent and about 1,000 positions were eliminated.
The budget consolidated and streamlined economic development programs to focus on job creation and attract
jobs to Pennsylvania.
The budget maintained important tax credit programs at 2010-2011 levels, including the Job Creation and Film
Production tax credits, and increase the cap on the Research and Development Tax Credit from $40 million to
$55 million.
The budget reinstates the phase-out of the Capital Stock and Franchise Tax- providing more than 100,000 job
creators with more than $70 million of tax relief in 2011-2012. The phase-out of this tax will continue until it is
completely eliminated in 2014.
The Basic Education Funding subsidy was reset to nearly the 2008-09 level- the last year before federal stimulus
funds were available. This resulted in an average annual increase of 3 percent in this funding over the last 10
years.
The budget increased total funding for the Department of Corrections and the Board of Probation and Parole
and provides funding to maintain trooper strength on Pennsylvania highways and communities.
The budged helped achieve self-sufficiency through sensible welfare reforms while it preserves services for
those in need who are eligible.

http://www.budget.state.pa.us/portal/server.pt/community/current_and_proposed_commonwealth_budgets/4566




Press

News for Immediate Release

June 30, 2011

Governor Corbett Signs Budget, Cutting Spending, Without Tax Increases

Harrisburg Gov. Tom Corbett today signed the 2011-12 budget which cuts government spending, does not raise taxes,
includes property tax reform, and restores common sense to the state spending process.


129
The $27.15 billion budget cuts overall government spending by more than $1 billion.

This reality-based budget marks a return to the Constitutional principles that must guide Pennsylvanias fiscal policy,
Corbett said. It spends no more than we have and it doesnt pretend we have more than what we have budgeted.

I was elected last November to change the culture of state government and that means not only must government be
honest, it must be fiscally responsible, Corbett said. The Senate and House join my administration in making these
standards a reality.

The legislature also agreed to a key economic proposal for school districts a referendum on any property tax increase
that exceeds the rate of inflation, known as Act 1. Under these changes, any property tax increase above the rate of
inflation must be approved by the local voters. Taxpayers in each district will be empowered to decide whether they
want a property tax increase to fund a particular program.

This puts taxing and funding decisions where they belong - in the hands of the voters who are footing the bill, Corbett
said. Who knows better how to spend money in our communities than the citizens who live there?

Pennsylvania taxpayers are reclaiming the budget process, not just for today, but for years to come, Corbett said.
Together, we have built a solid framework for future budgets.

The budget is part of a larger Corbett administration initiative that also includes tort reform - signed into law on June 28
- which reforms how damages are recovered in civil lawsuits, ensuring an equitable framework for litigation in the future
and improving Pennsylvanias business climate.


Highlights of the 2011-12 budget include:

State spending is cut by 4.1 percent, or $1.17 billion, from 2010-11.
The enacted budget eliminates 66 appropriation line items, cutting $822 million in annual spending. It reduces funding
for more than 226 appropriations and consolidates an additional 52 items, to streamline government.

Administrative spending is reduced by 4 percent and more than 1,000 positions in state government are eliminated.
These reductions are achieved in large part by consolidating programs, targeting inefficiencies and reducing or
eliminating discretionary financial grants, commonly known as Walking Around Money, or WAMs.

This marks the start of a commitment to reduce the cost of running state government by 10 percent over the next four
years. It is a change in the culture of taxing and spending that has caused the states economy to decline.

No budget is worth the trouble if it doesnt do something to grow the economy and create jobs, Corbett said. The
budget is here to serve the people not the other way around. This budget gets things in the right order and takes
another step toward clearing away the tangle and overgrowth of government.


This budget consolidates and streamlines economic development programs to focus on job creation and attracting
businesses to Pennsylvania. In spite of the many difficult choices, this remains a pro-growth budget, built on the proven
theory that lower taxes stimulate investment and jobs.

The budget honors Corbetts commitment to reinstate the phase-out of the Capital Stock and Franchise Tax. That tax
was levied on goods and equipment that a company kept in store, even though it had not been sold or put to use. By
eliminating this regressive tax, the governor has given more than 100,000 job creators an estimated $70 million in tax
relief. The phase-out of this tax will continue until it is completely eliminated in 2014.

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At the same time, the budget has maintained important tax credit programs. These are the Job Creation and Film
Production tax credits. The budget also increases the Research and Development Tax Credits from $40 million to $55
million.

The budget brings state tax policy into line with the federal tax code. It increases the bonus depreciation deduction to
100 percent for property placed into service before January 2012. This gives businesses room to expand and raises the
potential for a surge in purchases for Pennsylvania businesses.


State government has a solemn duty to provide for public safety, Corbett said. If the state is a ship, public safety is
the hull and we cannot cut there, only spend wisely. This budget spends wisely and will make Pennsylvanians and their
children safer.

It maintains funding for Pennsylvanias public safety programs, including an increase in total funding for the Department
of Corrections and the Board of Probation and Parole. It also provides funding for the Pennsylvania State Police to
maintain troopers on our highways and in our communities, as well as the states emergency management agency.

The budget supports our military and veterans programs, keeping our nations promise to those who served to defend
us.

The most vulnerable Pennsylvanians our children are well protected in this budget, Corbett said. It also targets
waste and fraud so that the truly deserving are no longer cheated by those who game the system.

This budget increases total funding by $6.2 million for the Childrens Health Insurance Program, provides $405 million
for childrens Early Intervention Services and $1.4 billion in county child welfare services.

In the area of long-term living, the budget provides $4.6 billion for home and community-based services and nursing
home care for persons with disabilities and older Pennsylvanians.

The budget includes $262.3 million in total funds to provide prescription drug coverage for 360,185 older
Pennsylvanians, an increase of 1,950 people.


This budget includes $5.4 billion for Basic Education. It is part of a larger effort to make education not only accessible,
but more flexible as we strive to improve student performance. This budget is based on my firm belief that the order of
priorities is child-parent-teacher, Corbett said.

Basic education funding has been increased $128 million from Corbetts original proposal, which was at the 2008-09 pre-
federal stimulus level. This results in an average annual increase of 3 percent in funding over the past 10 years.

The budget provides nearly $1.7 billion in total funds for higher education programs, including $381 million in the
Pennsylvania Higher Education Assistance Agency for the Grants to Students program for students seeking financial
assistance for higher education opportunities.

The enacted budget also includes $7.1 million in new funding to continue Educational Assistance Program tuition grants
for members of the Pennsylvania National Guard enrolled at degree-granting colleges.

Corbett praised those teachers, administrators and other school employees in a small number of school districts across
the state who followed his suggestion to forego pay raises, in an effort to help their communities control local finances
in this difficult economy.

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They serve as stellar examples of the shared sacrifice we all need to make to restore our state to fiscal stability,
Corbett said.

This budget - built on fiscal discipline and effective government - supports free enterprise and job creation, Corbett
said. Its a step toward making Pennsylvania a national leader among states in economic success once again.

To review the budget in its entirety, visit www.budget.state.pa.us


PUERTO RICO
Governor Luis Fortuno
Balancing the State Budget

Puerto Rico Governor Luis G. Fortuo is implementing an aggressive plan to get the governments fiscal house in order
to close a $3.3 billion budget deficit he inherited, the largest budget deficit proportionally in the country.

Delivering smaller, more efficient government and fiscal discipline
Implemented an aggressive plan to eliminate a $3.3 billion budget deficit he inherited.
Enacted fiscal emergency legislation, with support of the Legislature, requiring spending cuts.
Established a Fiscal Restructuring and Stabilization Board to lead cost reduction initiatives.
Slashed government spending by almost 20%: 10% cut in operating expenses (official vehicles, cell phones,
credit cards); 10% pay cut for the Governor and 5% for agency heads; 30% reduction in political
appointments; freeze on all salaries for two fiscal years; 15% cut in professional service contracts; voluntary
and mandatory reductions of 20,000 government jobs; reduced the number of government agencies
through consolidation; maintained but closed-out defined benefit pension plan and moved to a
performance-based defined contribution plan for future government employees.

Closing the deficit and saving Puerto Ricos credit rating. After a lost decade and five years of recession, Puerto Ricos
economy is stabilizing and showing signs of recovery.
Brought down deficit from 44% of revenues to 7% of revenues in just over two years, and 81% reduction. Is
on course to balance the budget in his first term.
Reduced the deficit proportionally more than any other state or territory. In a ranking of deficits as a
percent of revenues for all the states, Puerto Rico started off at 51 dead last but is now ranked number
15 in the country and closing.
Cost savings include cutting $935 million or 17 percent of total payroll.
The ratings agencies have noticed: Moodys increased Puerto Rico general obligation bond ratings to the the
highest for Puerto Rico in 35 years. Fitch Ratings assigned a BBB + rating with a stable outlook to the
governments general obligations. Standard and Poors raised upgraded its rating for Puerto Ricos general
obligation debt improving it from BBB- to BBB, the first upgrade S&P has given Puerto Ricos credit in 28
years.

FOR IMMEDIATE RELEASE: July 1, 2011
Puerto Rico Governor Fortuo Signs Deficit-Reducing 2012 Budget

Worst Budget Deficit in the Country Cut by 81 percent in Just Over Two Years,
Puerto Rico Continues Progress Toward Balancing its Budget


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SAN JUAN, PR Puerto Rico Governor Luis Fortuo today signed into law a fiscal year 2012 budget that will result in an
81 percent reduction in the budget deficit he inherited the worst in the country when he entered office in 2009
putting the U.S. territory on course to achieve a balanced budget in his first term.

With enactment of the 2012 budget, Gov. Fortuo said, Puerto Ricos budget deficit will be reduced from 44 percent of
revenues at its peak in 2009 to 7 percent of revenues this year.

When Gov. Fortuo took office in January 2009, the $3.3 billion budget deficit he inherited was the worst,
proportionally, among the 50 states and Puerto Rico. Due to measures that included cutting government expenses by
almost 20 percent, Puerto Ricos deficit ranking improved from last to 20
th
among the states in 2011, and will climb to
15
th
this year due to continued deficit reductions in the 2012 budget.

In Puerto Rico, we are working to turnaround a broken fiscal situation we inherited and transform Puerto Ricos
economy into a pro-growth magnet for new jobs and new investment. We cut government spending to right the fiscal
ship and reduced taxes across the board to spur growth, and the principal credit rating agencies have taken positive
action on Puerto Ricos credit, Gov. Fortuo said.

We started two years ago taking tough but necessary steps to address our deficit and now we are seeing results. As is
true with other governors around the country who are leading the way on these issues, I think what we are doing at the
state level is a model for the federal government grappling with tough choices to address the major fiscal challenges we
face, the Governor said.

Fortuo noted that all Puerto Ricos economic indicators, including retail, auto, housing and cement sales, point to an
improving economy, and that thousands of new jobs are being created in the private sector. Treasury revenue
projections have gone up due to the progress of the Islands economic recovery, improved fiscalization measures and
comprehensive pro-growth tax reform, he said, and FY 2012 General Fund collections are projected to increase 6.4
percent over the revenues for fiscal year 2011.

In addition to addressing the structural budget deficit, the Fortuo Administration has worked to implement pro-growth
reforms to spur the economy and is now taking initial steps toward addressing its Employee Retirement System
unfunded pension liability. Puerto Rico is among the few jurisdictions that eliminated defined benefit plans, moving all
future employees to a performance-based defined contribution plan.

Among the reforms implemented since 2009, Gov. Fortuo enacted the largest tax cut package in Puerto Ricos history,
which will lower taxes an average 30 percent for businesses and 50 percent for individuals. And after launching one of
the most advanced Public-Private-Partnership programs in the country, the Governor announced in June that Puerto
Rico will receive $1.436 billion in private infrastructure investmentthe largest such investment in any U.S. jurisdiction
this year and the first infrastructure P3 in the country since 2006 - to upgrade and manage two of the Islands major toll
roads.

When Fortuo took office in January 2009, Puerto Ricos $3.3 billion deficit represented 44 percent of revenues, and the
government didnt have money to meet the next payroll. With the support of the Legislature, the Governor enacted
fiscal emergency legislation requiring spending cuts.

Fortuo took a 10 percent pay cut, required agency heads to take a 5 percent cut, froze all salaries for two fiscal years,
reduced political appointments by 30 percent, and got rid of government cell phones and credit cards. Because payroll
expenses dominated 70 percent of the budget, government employee ranks were reduced by 23,000 through voluntary
and mandatory measures, achieving a $935 million or 17 percent reduction in total payroll. ###

Press

133
Cal Thomas: Puerto Rico's revival due to good Fortuno
Examiner Columnist | 11/16/11 8:05 PM

SAN JUAN, Puerto Rico -- Since the congressional supercommittee appears unable, or unwilling, to take a lesson from
Indiana or Virginia -- where Republican governors have made spending cuts and delivered budget surpluses without
damaging the social safety net -- members might wish to consider Puerto Rico and what its governor, Luis Fortuno, is
doing.
Fortuno is Puerto Rico's first Republican governor in 42 years. In 2009 when he took office, the U.S. territory had a $3.3
billion budget deficit. Three years earlier, Moody's Investors Service downgraded the commonwealth's bond rating to
junk status while in deep recession.
Like Virginia Gov. Bob McDonnell and Indiana's Mitch Daniels, Fortuno is turning the economy around by cutting
government spending by 20 percent, which has lowered the deficit by 81 percent.
He eliminated more than 20,000 government jobs, reformed government services, trimmed costs and cut spending by
10 percent overall, eliminating official vehicles, cell phones and credit cards.
Following five years of recession, the commonwealth's economy is showing signs of recovery. Moody's took notice,
upgrading Puerto Rico's bond status to A3, its highest rating in 35 years. Standard and Poor's raised its outlook on Puerto
Rico's credit from "stable" to "positive." It is Standard and Poor's first positive review since 1983.
Over the next six years, newly implemented tax cuts will return $1.2 billion to those who earn the money. Added to this
is a 7 percent tax credit for corporations and a reduction in the corporate tax rate from 41 percent to 30 percent.
As for "infrastructure," about which President Obama so often speaks, according to the governor's office, Puerto Rico
has created an "aggressive public-private partnership law to encourage private investment and bring efficiencies to
schools, roads, airports and water and energy projects."
What's not to like about this? It produces results Democrats say they want, especially infrastructure, and it does it with
economic policies Republicans endorse.
In an interview in his office, located inside La Fortaleza (The Fortress), one of the few medieval castles remaining in the
Americas, I asked Governor Fortuno what advice he would offer his fellow Republicans on illegal immigration and how to
win more Hispanic votes.
"I think the Republican Party has done an awful job handling this issue," he says. "It makes no sense for us not to bring
more Hispanics into the party because Hispanics are naturally conservative. The tenor of the public discourse
surrounding this issue has sounded anti-Hispanic at times."
What would he recommend to change the tone?
"First, show up; show respect. Most Republican candidates don't do that. They talk about 15-foot fences and then try to
address the issues of greatest concern in the Hispanic community. They are no different from other communities most
of the time. On immigration, Republicans say, 'We want legal immigration and we are the country, thanks to legal
immigration,' so we need to try to address this issue with a different tone than we've had so far."
Another issue: What about Cuba's post-Castro future?

134
Fortuno thinks any resumption of relations between the United States and the communist nation should be conditioned
on an improvement in human rights, which he says are "grossly" violated by the Castro brothers.
What about the growing relationship between Venezuela and Iran?
"Daily flights," the governor interrupts.
What can the U.S. do to lessen Iran's influence in the region?
"Energy is the big issue," he says. "As I travel and talk with leaders, they feel the U.S. has not helped them sufficiently to
fill their energy needs. Economic development is the only way to address (Iran's influence). Each country has its own
challenges, but the U.S. needs to help fill that economic void and if we don't, others will."
The 51-year-old governor is handsome and charismatic.
He'll need that and more to win re-election in 2012. While Fortuno is gaining ground in popularity after the massive
government layoffs (he now trails his likely Democratic opponent by single digits), changing from a dependency culture
to one of personal responsibility takes time.
Maybe the supercommittee should visit San Juan. A little face time with Luis Fortuno might improve the group's chances
of a debt resolution.
Examiner Columnist Cal Thomas is nationally syndicated by Tribune Media.


OHIO
Governor John Kasich
Two Year State Budget
Ohios H.B. 1 represented the lowest growth budget in modern Ohio history. General Revenue Fund (GRF)
appropriations contained in H.B. 1 represented a 3.8 percent decrease compared to actual FY 2009 spending of $26.8
billion with appropriations set at $24.6 billion and $25.9 billion in FY 2010 and FY 2011. These appropriation levels not
only resulted in a decrease compared to FY 2009, but also represent the first time in modern Ohio history that biennial
appropriations decreased compared to the previous biennium. As a result of this negative growth, total spending for the
four-year period of FY 2008 2011 will be 4.4 percent, which would be the lowest four-year growth level since at least
1947. For more information, please see http://obm.ohio.gov/sectionpages/Budget/FY1011/Default.aspx

Press

Gov. John Kasich signs two-year state budget, but vetoes seven items first
Published: Thursday, June 30, 2011, 9:17 PM Updated: Saturday, July 02, 2011, 2:07 AM
By Joe Guillen, The Plain Dealer

http://blog.cleveland.com/open_impact/print.html?entry=/2011/06/gov_john_kasich_signs_two-year.html

COLUMBUS, Ohio --
Gov. John Kasich put the finishing touches on the state budget Thursday, using his veto power to carve out several
provisions from the bill before signing it into law.


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Kasich's vetoes did not drastically alter the two-year spending plan, but they will play a role in the future sale of six Ohio
prisons, the state's fight against childhood obesity and the Ohio Lottery Commission's spending.

In all, the Republican governor vetoed seven items from the $112 billion state budget that is packed with policy changes
and is $2 billion lighter because of cuts to schools and local governments.

"We promised Ohioans a new way and a new day. We are delivering," Kasich said after signing the 3,262-page document
before a room full of supporters Thursday night at the Statehouse.

After more than three months of debate and compromise, Kasich's vetoes and signature wrapped up a divisive budget
process that also resulted in the repeal of the Ohio's estate tax, the expansion of charter schools and new restrictions on
abortion.

Kasich crossed out a $125,000 earmark for the Hattie Larlham organization, a Twinsburg-based Medicaid provider, and
reduced the amount of money the state would put toward the Ohio School Facilities Commission building assistance
program Democrats have criticized the budget, saying it unfairly cuts spending at the expense of schools and local
governments. House Democratic Leader Armond Budish, of Beachwood, said reforms in the budget will impose a
"radical political agenda on Ohioans."

Kasich and GOP legislative leaders, however, have praised the budget as a frugal blueprint that patched up a multi-
billion budget shortfall while creating opportunities for job growth.

Related stories
Kasich has busy day signing budget, guns in bars, park drilling, other bills
The House of Representatives and Senate, both controlled by Republicans, approved the budget earlier this week,
sending it to the governor's desk for his signature. No Democratic lawmakers voted for the bill.

"This is the one they said couldn't be done," Kasich said as he sat at a desk, in a plush red chair, to sign his name about
four hours before a midnight deadline. This is his first year in office and his first biennial budget.

He used 21 pens allowing a few members of his administration, including budget director Tim Keen, to dot his middle
initial and the "I's" in his name.

Before he signed the budget, Kasich and his staff reviewed the document to pinpoint any provisions to delete using the
governor's line-item veto power.

One area Kasich targeted was the plan to privatize a portion of Ohio's prison system. The budget calls for the sale of six
Ohio prisons, which are expected to generate about $200 million.

Kasich vetoed language that gave the state a right of first refusal to re-purchase a prison at its original sale price if the
private buyer decides to sell off the prison in the future.


136
Kasich eliminated the state's right because it would decrease the prison's current price tag, he said in a statement
explaining his vetoes.

The governor also preserved a voluntary body mass index screening program at Ohio's schools, vetoing a provision that
would have eliminated the program. In his statement, Kasich said childhood obesity is an important public health issue
in Ohio. (A previous version of the story said Kasich's veto eliminated the screening program.)

Another budget provision Kasich axed was a requirement that the Ohio Lottery Commission print its contribution to
education on tickets and advertising. Kasich vetoed the requirement because it was costly, therefore reducing the
money the lottery could provide schools.

Kasich's seven vetoes were far less than when former Gov. Ted Strickland, a Democrat, vetoed 61 items before signing
the budget in 2009.

IOWA
Governor Terry Branstad
2012 Budget Overview

At the beginning of the 2011 Session the state of Iowa faced a critical budget crisis resulting from years of bad budgeting
practices. Tricks, gimmicks, and sleights of hand could no longer disguise the states dire financial condition. Governor
Branstads administration identified nearly $900 million of state spending on 89 different programs that were funded
with unpredictable sources of money which left Iowa facing a huge budget gap and nothing but difficult choices ahead.

Job number one was bringing the state budget under control, solving the fiscal crisis, and restoring predictability and
stability to the state budget so those receiving state services could count on their uninterrupted delivery.

The FY 12 budget spent less than it took in and state spending was held to about 96% of available revenuea
significant accomplishment after years of spending every penny the state received and then some.
For the first time since the early 1980s the state has a biennial budget with 85% of funding for FY13 already set
and key areas such as school aid and entitlement programs fully funded in the second year.
No entitlements were purposely underfunded in FY 12.
In both FY 12 and FY 13 the state fully funded its commitment to school districts, providing an additional $156
million in FY 12 to provide property tax relief and an additional 2% allowable growth for schools in FY 13.
Significant progress was made to ensure ongoing state programs are paid for from ongoing state revenue
sources.
This budget balanced for FY 12, FY 13, and is projected to balance over the entire five years of Governor
Branstads long range plan.

For more information, please visit www.Governor.Iowa.gov.

Press

DES MOINES - Iowa lawmakers dodged the specter of a government shutdown with hours to spare by finishing a new
budget plan Thursday afternoon and adjourning their marathon session on the 172nd day.
The final gavels fell in the House and Senate after leaders of the split-control General Assembly resolved a dispute over
Medicaid-funded abortions that delayed the overtime session for nearly an extra day. The Iowa House adjourned at 3:41
p.m., and the Iowa Senate followed two minutes later, ending the third-longest session on record.

137

The 84th General Assembly's first yearly gathering closed to mixed reviews, with Gov. Terry Branstad praising lawmakers
for approving a $5.999 billion spending plan for the new fiscal year that begins today. But the governor expressed
disappointment they failed to find a compromise on a property tax reform issue.

Branstad was undecided whether the inaction on efforts to reduce commercial property taxes and cap rate increases at
2 percent for agricultural and residential property classes warranted calling lawmakers back for a special session later
this year.

Republicans who control the Iowa House and majority Democrats in the Senate agreed to details of a $5.999 billion
spending plan for fiscal 2012 that shrunk the general fund by $245 million. It met Branstad's demand for a two-year
budget that spends less money than the state takes in and is sustainable without employing accounting tricks or one-
time funding sources.

"I think it's going to be viewed as a very significant session. There's no question that we've fulfilled the commitments
that we made," said Rep. Scott Raecker, R-Urbandale, chairman of the House Appropriations Committee who led the
GOP charge for scaling back state spending and government growth. "Compromise always means that there's give and
take, and I believe that both parties, both chambers and the governor will look at this session as a success."

More than seven hours of the Legislature's final session day was spent negotiating agreement on the politically volatile
issue of Medicaid-funded "medically necessary" abortions for low-income women performed at the University Hospitals
in Iowa City that was included in a $1.5 billion health and human services budget bill.

Under the terms of the agreement, the state will comply with the minimum federal Medicaid guidelines, which include
rape and incest. Fetal deformity is an option. It will be up to the state Department of Human Services and the governor
to determine whether the state will comply with that. The bill does not spell out in what instances Medicaid-funded
abortions will be provided. It refers only to complying with federal guidelines, said Rep. Beth Wessel-Kroeschell, D-Ames,
one of the conference committee negotiators.

The practical effect is that the scope of services available to low-income women will not change, she added. The
compromise language included a statement that "Iowans support reducing the number of abortions performed in our
state."

The abortion agreement rounded out a week of intense bargaining that produced a new spending plan that would
freeze state aid for K-12 schools while "backfilling" $216 million in property taxes and local reserves needed to cover
past shortfalls in state commitments next fiscal year. It also provides a 2 percent "allowable growth" increase in fiscal
2013.

Preschool programs will remain unchanged after Branstad's effort to create a means-tested funding system stalled, but
state funding was cut to $59 million. Regent universities took a $20 million hit in general aid, and community colleges
will have a $6 million overall increase into the new fiscal year.
Sen. Bob Dvorsky, D-Coralville, chairman of the Senate Appropriations Committee, said Democrats fought hard to
protect priorities in the Statehouse's new political landscape.

"Despite having really tight, tight budgets, I think we made good decisions to try to fund as best we could the priorities,"
he said. "I don't think government is going to function the way we would like it to function, but it's still going to function.
It remains to be seen what will happen. Some of those budgets are really tight, and we may have some layoffs."

On the final day, lawmakers approved a measure to fund state programs during the 30-day period the governor now has
to review late-arriving budget bills and consider using his item-veto power to strip appropriation measures of provisions
he does not like.

138

"I appreciate the Legislature doing this," Branstad said, who signed House File 698 into law about one hour after
lawmakers adjourned. "I think this is essential so that we can do a very thoughtful review of all the bills passed in the last
three days of the legislative session."

Read more: http://www.qctimes.com/news/local/article_0ce4d55a-a35e-11e0-8c17-
001cc4c002e0.html#ixzz1cnMgd21I


INDIANA
Governor Mitch Daniels
Daniels Budgeting Record

From bankruptcy to balanced budgets, Indiana is solvent and its been done without raising taxes. Indiana built $1.3
billion in reserves, using a portion of them to get through the recession. Instead of cutting services, Indiana is
maintaining services and paying its bills. The largest tax cut in the states history has been achieved by capping
residential property taxes at 1 percent. Indiana has built the best business climate to attract jobs and has had record job
commitments for 5 years running.

After nearly a decade of unbalanced budgets, Governor Daniels restored Indianas budget to structural balance in his
first budget. The state went from a $700 million structural deficit in 2005 to $1.3 billion in reserves in 2009. Indianas FY
2012-2013 budget is structurally balanced, and reserves are expected to grow in the current biennium. An Automatic
Taxpayer Refund was signed by Governor Daniels in 2011 whereby reserves in excess of a prudent level are refunded to
Indiana taxpayers. Since 2005, more than $760 million was paid back to all K-12 schools, universities and local
government units that were owed to them from previous deficit spending. In total, state debt has been reduced by more
than 42% under Governor Daniels. Over $250 million in unnecessary spending was trimmed from state government and
$190 million was saved by renegotiating 30 state contracts. Indiana now has fewer state employees than it did in 1976,
and the fewest state employees per capita of any state.

For the first time in state history, Indianas credit rating was raised to AAA by the independent credit rating agency
Standard & Poors in 2008 and reaffirmed in 2009, becoming just one of 11 states to hold such a distinction. In 2010, two
other major independent credit rating agencies, Fitch and Moodys, also raised Indiana's credit rating to AAA. Indiana is
one of nine states that now have AAA credit ratings from all three agencies
56
.

Property taxes have been cut by an average of more than 30 percent, with homeowner property taxes currently capped
at 1 percent of assessed value. Property tax caps began in 2009, and Hoosiers voted to make them a permanent part of
the Indiana Constitution in November 2010.

Press

Editorial: Budget surplus is reminiscent of Daniels first year
Staff Reports
Staff Reports
Tuesday, July 19, 2011

56
(S&P Ratings Service - June 2009, Fitch and Moodys - April 2010)

139
Even as Indiana Gov. Mitch Daniels nears the end of his second term, he is still doing the tough budget work that marked
the beginning of his tenure in 2005. State Auditor Tim Berry announced last week that Indiana has ended the fiscal year
with a $1.2 billion surplus, a truly remarkable accomplishment for Daniels in a day when numerous other states are
dealing unsuccessfully with brutal deficits.
Last week's announcement reminded us of 2006 when it was reported that after eight years of deficit spending while
the state was under Democratic control including a $600 million deficit when Daniels took office he had produced
a balanced budget. And, millions of dollars owed to Indiana school corporations, the result of the administration of
Democratic Gov. Frank O'Bannon delaying payments, were paid back.
It was an ugly struggle, fighting with Democrats among them Rep. Pat Bauer, D-South Bend over some of the
governor's budget measures. The truth is, some of Daniels' early proposals privatizing the welfare application process
and tinkering with Indiana's time zones, for example were a bust.
But his early efforts to right the fiscal ship were in the end successful, as was his innovative Major Moves initiative,
which poured millions into roads, highway and bridge work, also at a time when other states had no money to repair
and replace infrastructure. Bauer fought him on that one too.
Of course, in between then and now, Indiana and the nation were devastated by a crippling recession that drastically
reduced state revenues. Only now is Indiana beginning to see the hints of a recovery.
And last week's headline news on the state surplus brought smiles to the Daniels administration. if not to Democratic
leader Bauer.
As Eric Bradner of the Courier & Press Indianapolis Bureau reported Sunday, Bauer criticized Daniels for achieving a
surplus, while at the same time underfunding schools, and creating new charter schools and the new voucher program.
The Democrats challenge to Daniels is to ask why he is cutting programs, especially in education and child services, if
there is money in the bank.
The truth is, the surplus is very good news, but it isn't that big that it couldn't be wiped out with another downturn in
the nation's economy.
Combine that possibility with a spending spree here and there, and Indiana could be right back were it was pre-Daniels,
when Bauer and Democrats controlled the state capital and the state of affairs was broke and depressed.
We imagine Daniels would like nothing better than to leave office with Indiana in the shape he put it his first year in
office. That means, other than paying bonuses to state employees and perhaps a payback to taxpayers, no change in his
tough approach to spending.
http://www.courierpress.com/news/2011/jul/19/budget-surplus-is-reminiscent-of-daniels-first/


LOUSIANA
Governor Bobby Jindal
Budgeting Under Governor Jindal


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Before Governor Bobby Jindal took office, the states budget had doubled over the past six years and 1,000 new
government jobs were added without any specific design for services. During the Governors first term in office, he
reduced the state budget by a stunning total of $9 billion, or 26 percent.

Governor Jindals budget reductions included the elimination of 9,900 full-time government positions, bringing state
government to its lowest level of fulltime government positions in almost 20 years. Many of these positions were
streamlined by implementing efficiencies that use technology and share resources between agencies.

Governor Jindal also eliminated more than 100 state boards and commissions and reduced government cars by 1,300
vehicles, bringing the size of the fleet to its lowest level since 2004.

Since Governor Jindal took office in 2008, three state departments Transportation and Development, Revenue, and
Wildlife and Fisheries have eliminated general fund spending in their budgets entirely, though cost-saving measures
and maximizing the use of existing funds from other sources, including those that are self-generated.


Press

Jindal cuts La. budget 25% and sky doesn't fall
Philadelphia Inquirer
Jim Geraghty
November 6, 2011

"In January 2008, the state had a budget of $34.3 billion. This summer, Jindal signed into law a budget spending $25
billion. As governors from Harrisburg to Trenton to Columbus to Madison have learned, cutting a state's budget is
difficult enough; doing so without a significant backlash seems a politically impossible task...

Decades of mismanagement and corruption had taken their toll even before Hurricane Katrina wreaked such
devastation and exposed such colossal unresponsiveness in state government. The state, recognizing the bitter fruit of
its traditions of colorful corruption, was ready to take a chance on a then-37-year-old Indian American congressman...

His administration privatized the state's Office of Risk Management. Then the state's Division of Administration
privatized claims management and loss prevention in the self-insurance program, saving $20 million over five years. The
Department of Health and Hospitals privatized six inpatient, residential-treatment programs around the state, saving
$2.5 million. Separately, patients were moved from state-operated institutions that cost $600 or more per patient per
day to community-based services and private group homes that average $191 per day, saving an additional $23.8
million.

Consolidation was another key element: The state's Department of Revenue shrank from eight offices statewide to
three. The Department of Children and Family Services consolidated its offices from 157 to 90, saving a total of $2.7
million.

But some of Jindal's cuts are the old-fashioned kind. The state sold 1,300 vehicles from its fleet of automobiles.
Louisiana's Transportation Department shut down a ferry that was used by only 7,200 drivers per year, saving the state
roughly three-quarters of a million dollars.

In fiscal 2011, Louisiana eliminated more than 3,500 full-time government positions. Add the 6,363 previous reductions
during Jindal's term, and that means a total of almost 9,900 full-time positions reduced since he took the oath, a savings
of almost $600 million. Louisiana now has the lowest level of full-time state government employees in almost 20 years.

'You change people's expectations and you make structural changes,' Jindal said, while racing around the state about

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three weeks before the election. 'The most important is this cultural change, to say government is not the answer to
everything...'

Jindal's first term was marked by several high-profile crises he successfully managed - Hurricane Gustav and the
response to the BP oil spill, along with the Obama administration's six-month moratorium on all drilling in the Gulf of
Mexico - but the state's economy has generally chugged along: Louisiana's unemployment rate is 7.1 percent, two
percentage points lower than the national average, and a comparably booming economy makes cuts in state spending
much easier to take.

'If you have a good-paying job with benefits, you wouldn't need the state to do so many things for you,' Jindal says. 'You
become less dependent, and that diminishes the role of the state and so you need fewer state employees, and it's a
virtuous cycle. You can lower taxes and lower government spending...'

Skeptics can argue that post-Katrina Louisiana represents a unique case of a state's electorate abandoning all aspects of
a failed status quo. But what today's Louisiana demonstrates is that after the reforms were enacted, the sky didn't fall...

Smaller, more efficient state governments may not be such an impossible dream after all..."
http://www.philly.com/philly/opinion/20111106_Jindal_cuts_La__budget_25__and_sky_doesn_t_fall.html


VIRGINIA
Governor Bob McDonnell
McDonnells Two Budgets

Governor Bob McDonnell inherited two budget shortfalls. The first was a $1.8 billion in the concluding FY 2010 budget.
Through holding the line on discretionary spending, putting in place a hiring freeze in state government, making
conservative revenue estimates and incentivizing state employees to save taypayer dollars, the governor turned that
shortfall into a $403 million surplus in just 6 months.

The second shortfall was an even larger $4.2 billion in the FY 2011/2012 budget introduced by outgoing Governor Tim
Kaine. No governor had ever taken office confronting a budget shortfall of this size. The governor closed the historic
$4.2 billion budget shortfall that he inherited for FY 2011/2012 through spending reductions, not tax hikes.

The need for such a larger amount of budget recommendations from a first session governor resulted from outgoing
Governor Kaine sending down the FY 2011/2012 budget with a $2 billion in come tax hike included to close the shortfall.
It would have been the biggest tax hike in Virginia history. The budget was passed without a tax increase and with a car
tax relief in place. It reduced spending to 2006 levels.

His pension reform, requiring new state employees to contribute to their own retirements for the first time in a
generaion, will save Virginia $3 billion over the next ten years. The governors hiring freeze in state government is saving
$20 million a year. Additionally, the General Assembly approved 92% of Governor McDonnells 213 amendments to the
budget and previously passed legislation.

http://www.governor.virginia.gov/MediaLibrary/McDonnell-Press-Book-Spring-2011.pdf


Press

Washington Post
Posted at 12:47 PM ET, 08/10/2011

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McDonnell: Virginias budget surplus will increase by at least $50M
By Anita Kumar
Gov. Bob McDonnell (R) said Wednesday that he will announce next week that Virginias budget surplus will increase by
at least another $50 million because of savings.
We saved a lot of money, McDonnell said. I gave some incentives to people, as you remember, to come up with new
ideas and I told my managers dont be like Washington, dont spend every dime you have and then think thats what
youre going to get in the base budget next year, not happening.
Last month, McDonnell announced that the state had finished its fiscal year with a surplus of $311 million -- its second
straight year with higher-than-expected revenue.
McDonnell will unveil the final numbers in his speech to the General Assemblys money committees next Thursday in
Richmond.
A year ago, Virginia ended the fiscal year with a surplus of about $403.2 million $229 million came from taxes, and the
rest from savings.
The governor credited higher tax revenue 5.8 percent growth in fiscal year 2011, instead of a forecast 3.5 percent
as the main reason for the surplus. It is the first year since 2008 that state revenue has increased over the previous year.
He has proposed giving some of the unspent balance to sheriffs offices across the state and to localities hit by recent
tornadoes in southwest Virginia, as well as shoring up the pension system.
But Virginia law calls for the bulk of the money to be put into the states rainy day fund and spent on K-12 education,
transportation and Chesapeake Bay cleanup.
Democrats have criticized McDonnell for declaring a surplus after years of cuts to core services; delayed payments to the
Virginia Retirement System; and a requirement that retailers pay sales tax a month early, allowing the state to receive
money in an earlier fiscal year.
The General Assembly passed a $78 billion budget for fiscal 2011 and 2012 with no general tax increase, but the budget
did include several fees and hundreds of millions of dollars in cuts, including to health care, schools and public safety, as
it tried to close a $4 billion shortfall over the two years.

MISSISSIPPI
Governor Haley Barbour
Budgeting under Barbour

When Governor Barbour took office in 2004, the states budget was headed for disaster. The previous governor and
legislators created a more than $700 million budget hole by relying on too much one-time money and overly optimistic
revenue estimates. The media reported a tax increase was inevitable. Governor Barbour attacked the problem on
several fronts revenues streams, responsible budgeting, structural reforms, and controlled indebtedness and
balanced the budget within two-and-half-years without raising anybodys taxes.

Putting People to Work. Governor Barbour focused on luring high-skilled, high-paying jobs. This resulted in a roughly 30
percent increase in per capita income and a jump in the number of people working by nearly 41,000 prior to the national

143
recession. This gave the state more revenue through working taxpayers without raising rates.

Saving for a Rainy Day. Saving for a rainy day became a priority under Governor Barbour. In 2004, Mississippi had just
$3 million in savings. Governor Barbour insisted on filling the states rainy day fund to its statutory limit so Mississippi
would be prepared for an economic downturn. This fiscal preparedness helped Mississippi weather the biggest natural
disaster in American history, Hurricane Katrina, plus the Great Recession that spread across the world.

During the recession, Governor Barbour insisted upon prudent use of cash reserves to ride through the recession instead
of spending all the federal stimulus funds and counting on additional "manna from heaven". At the end of Fiscal Year
2012, the last year during which Governor Barbour is in office, Mississippi has more than $285 million in reserves to be
used as a budgetary cushion for his successor and the 2012 Legislature.

Reducing Spending. To keep the budget balanced, Governor Barbour made the tough but necessary decisions to reduce
spending by $466 million in one fiscal year while protecting the states priorities: education, public safety and attracting
more and better jobs. He found efficiencies by tapping the private sector to deliver services and save taxpayer dollars in
areas such as private prisons and Medicaid. He controlled growing Medicaid costs by encouraging the use of generic
prescriptions and instituting fraud controls. As a result, Medicaid spending increased just 4 percent annually, compared
with a 16 percent spike previously.

Providing Flexibility to Manage Budgets More Effectively. Governor Barbour succeeded in obtaining lump sum budget
authority for agencies from the legislature, thereby allowing agency heads the flexibility to manage their budgets more
effectively, especially during downturns in the economy. The Governor also pushed for and obtained freedom from the
states Personnel Board which allowed agency heads even more flexibility to cut costs and provide greater efficiencies
for taxpayer services.

Increasing Transparency. Governor Barbour increased transparency in the state budget by promoting the identification
and recording of all state support funds used in the budget, including general fund equivalents such as education
enhancement funds. Additionally, he supported and signed legislation that enhanced a system tracking government
expenditures so that taxpayers can easily access how their hard-earned dollars are being spent by the state. Increasing
transparency also increases accountability, Governor Barbour believes.

Streamlining Agencies. Governor Barbour advocated for the streamlining of agency functions and cost efficiencies
through the implementation of shared services, the creation of an Office of Small Agencies which consolidated the
regulation of water and wastewater infrastructure improvement programs and integrated health and agriculture
inspection functions. He also pushed for improved technology for agencies, such as virtualization, so that agency
functions could operate efficiently while saving funds.

Reforming the Public Employees Retirement System (PERS). Governor Barbour kept an eye towards the long-term
needs of both taxpayers and state workers by protecting the solvency of the Public Employees Retirement System. He
successfully raised the employee contribution in PERS from 7.25 percent to 9 percent, increased vesting period for
employees hired in July 2007 and later from four to eight years, put stronger restrictions on pension abuses like double-
dipping, and increased the retirement age for new hires as of July 2011 to 30 years along with other cost-savings
changes. At press time, Governor Barbours PERS Study Commission is still considering reforms to make Mississippis
PERS more actuarially sound and fair to both the state (i.e., taxpayers) and employees (i.e., beneficiaries of the states
pension system).

Reducing State Bonded Indebtedness. Governor Barbour pulled the reins on reckless borrowing by the state in his first
two years. In 2005, Mississippi paid off more debt than was issued, so the states bonded indebtedness actually went
down for the first time in almost 20 years. He targeted bonds toward essential needs that would generate revenue and
more importantly jobs for Mississippians. A majority of the states borrowing was applied to economic development
projects, capital improvements or rebuilding after Hurricane Katrina.

144

In spite of having to rebuild the Gulf Coast after the 2005 storm, Governor Barbours leadership maintained almost half
of all bonds issued for direct economic development projects to ensure Mississippi did not lose any momentum in
attracting good-paying jobs while also rebuilding the coast back bigger and better.


TENNESSEE
Governor Bill Haslam
Balancing the State Budget

In spite of a down economy and a loss of $1.8 billion in federal stimulus money, the Governor prioritized and was able to
put together a balanced budget for FY 2011-2012. The final $30.8 billion budget reflected responsible investments,
reductions and savings, including:

A $1 million tax cut for seniors
A 1.6 percent salary increase for state employees - the first in four years
Restoring $70.4 million to the Rainy Day Fund
$3.8 billion to fully fund the Basic Education Program, including a $48.7 million increase for K-12 education
$71.3 million for disaster relief resulting from recent storms and flooding


NEW JERSEY
Governor Chris Christie
Property Tax Cap and Reform Legislation

On July 3, 2010 Governor Christie reached a bipartisan consensus with Legislative leaders to provide long-awaited
property tax relief for New Jerseyans through a hard cap of 2.0%. Any waivers of the 2.0 hard cap will be granted by a
vote of the people. A local cap override referendum would be approved by a simple majority vote. The Governor's
reform agenda is driven by the fact that since 2001, spending at the local level has spiked 69 percent - from $26.5 billion
to approximately $44.7 billion in 2010. Had a hard cap been in place for the last decade, the average family's property
tax bill today would be $5,167, rather than the current $7,281.

The legislation allows for few exceptions, which include:
Capital expenditures and pay required debt service
Pension benefits
Health benefits
Expenses incurred in connection with a state of emergency as determined by regulations to be defined.

In addition to the cap, the Governor sent to the Legislature a 33-bill package of reforms aimed at solving New Jersey's
property tax crisis. The bill package gives municipalities, school districts, higher education institutions and county
governments the necessary tools to control their costs and live within the cap; also known as The Tool Kit.

Highlights from the Local Government Tool Kit Legislation:
Statutorily imposed a 2.0% cap on increases in the property tax levy increases for municipal, school and county
taxes, cap banking is allowed.
Reform in selection of arbitrators for union contracts.
Arbitrators are mandated to consider impact of union contracts on property taxes, no such requirement in
current law.
Arbitrators are barred from making contract awards that exceed 2.0% cap for 3 years from passage of the
legislation, which is inclusive of all salary, benefit and other economic contract provisions.

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Shared services reform - when local units decide to share services current law requires buyout of union
contracts, bumping and other civil service protections that destroy the efficiencies of the merger; this proposal
eliminates certain civil services protections when services are shared. (2 bills required to amend different
statutes).
Pension and benefit reforms which increase pension and health contributions paid by a half-million teachers,
police and other public workers and removes health benefits from collective bargaining for four years, saving
$132 billion over the next 30 years for the taxpayers of New Jersey.

In addition to the bills primarily affecting municipalities, school districts and county government, the Governor has also
recommended a number of key reforms to election reform and assist higher education.

For more information on the Governors property tax cap please visit: http://www.nj.gov/governor/priorities/tax/
For media information which can provide for more details and updates on the Tool Kit legislation please visit:
http://www.state.nj.us/governor/news/news/552011/approved/includes/result.shtml?cat=prop




















Chapter 6: Promoting Responsible Government


As states face unprecedented budgetary challenges, it is imperative that government become more effective and
efficient. The only way government reform can be achieved is if waste and unnecessary spending are eliminated and the
federal government is trimmed of its ineffective services. Rather than focusing on policies dictated by the federal
government, the key in achieving solutions needs to be centered on local and state advancements in innovation.

Featured states and programs in this chapter include:


146
SOUTH DAKOTA Governor Dennis Daugaard, Providing More State Government Information Online to the
Public

INDIANA Governor Mitch Daniels, Improving Government Performance

ALABAMA Governor Robert Bentley, Alabamas Commission on Improving State Government

VIRGINA Governor Bob McDonnell, Governors Commission on Government Reform and Restructuring

MICHIGAN Governor Rick Snyder, Michigan Dashboard

NEW JERSEY Governor Chris Christie, Shadow Government Reform

ARIZONA Governor Jan Brewer, Modern State Government, The Cornerstone of Reform

PUERTO RICO Governor Luis Fortuno, Government Reform Initiatives

NEW JERSEY Governor Chris Christie, Pension and Benefit Reform

LOUSIANA: Governor Bobby Jindal, Conservative Reforms to Streamline Government


SOUTH DAKOTA
Governor Dennis Daugaard
Providing More State Government Information Online to the Public

Shortly after becoming Governor, Dennis Daugaard received two reports that were critical of South Dakotas website
transparency. The federation of state Public Interest Research Groups gave the state a D and the Sunshine Review
gave the state a B- for the quantity and usefulness of information on South Dakota state government websites.

The Governor created guidelines that everything should be available to the public except proprietary business
information, items that could jeopardize safety or security, personal information about citizens beyond the basics and
other information that is deemed confidential by law.

More information has now been added to the Open.SD.gov website that was created in 2008. The new enhancements
include:
Checkbook-book level detail on vendor payments,
The ability to search for payments by purpose or activity,
Easier employee salary search,
New capabilities to download data into Excel spreadsheets, and
Easier navigation of the states open records request process.

Open.SD.gov currently features over 470,000 general ledger balances, records of over 27,000 vendors, the salaries of
over 16,000 state employees and copies of over 4,000 state contracts.


INDIANA
Governor Mitch Daniels
Improving Government Performance

147
In his second executive order, Governor Daniels created the Indiana Office of Management and Budget , an umbrella
agency that provided a single point of oversight for state government financial management. Existing organizations that
were part of this alignment included the budget agency, department of revenue, the state retirement funds, public
finance office, department of local government finance and the states audit arm. The lone new function created in the
executive order was the division of government efficiency, a small group charged with developing a statewide
performance measurement system and to identify and assist in the implementation of government program efficiency
and improvement opportunities. The division also performed over 400 government program reviews in 2005 and 2006
and made almost 200 recommendations. The division has also played key roles in projects that have cut across all state
agencies such as procurement reform and fleet management. The government efficiency division, governors office
policy directors and the state budget agency staff conduct quarterly performance meetings with all state agencies to
maintain the performance focused culture.
Governor Daniels also directed the state personnel department to develop and implement a pay-for-performance
program. Since the beginning of the Daniels administration, all employees develop annual performance plans and are
evaluated for meeting the goals established at the beginning of the year. Salary adjustments are based on those results.
More than 800 child caseworkers have been added, child support collections are up by $252 million, and child services
waiting lists have been cut in half. The states Rx for Indiana program has helped over 87 percent of the 330,000
Hoosiers who inquired about the program qualify for free or discounted prescription medications, bringing the total
being assisted to more than 288,000 Hoosiers. The average transaction time at the Indiana Bureau of Motor Vehicles is
now less than 8 minutes with a 97 percent overall customer satisfaction rate. In 2008, the BMV received the
International Customer Service Excellence Award for excellence in customer service. In 2010, the BMV received that
award a second time, becoming the first-ever two-time recipient
57
. Participation by over 90% of state employees in
consumer driven health plans with health savings accounts has reduced state healthcare costs by over 10%.


ALABAMA
Governor Robert Bentley
Alabamas Commission on Improving State Government

On February 25, 2011, Governor Bentley appointed 22 citizens to serve on the Alabama Commission on Improving State
Government, stemming from the January 25
th
executive order he signed creating the commission. The duty of the
commission is to work with the state legislature and Governors Policy Office to analyze and explore new ways to reduce
government spending with minimal or no reduction to essential state services. The Governor stated, We are in
challenging economic times and state government must do what every Alabama family is doing right now and that is
find ways to cut back on spending. The members of this commission will take an in-depth look at the current cost
structure of every state agency and look for new and effective ways to cut costs without cutting essential services. I
appreciate their willingness to serve and look forward to receiving their recommendations. Following action on
recommendations in the preliminary report, a comprehensive review will begin to evaluate all branches of state
government to identify additional recommendations to improve efficiencies and reduce costs while protecting essential
services.
58



Press

Governments race to finish dashboards by deadline: Millions at stake in revenue sharing

57
(AAMVA - July 2008, October 2010)

58
http://governor.alabama.gov/news/news_detail.aspx?ID=4712


148

Governor Robert Bentley
Commission on Improving State Government
Gov. Robert Bentley creates Alabama Commission on Improving State Government
http://www.abc3340.com/story/14141981/gov-robert-bentley-creates-alabama-commission-on-improving-state-
government

Governor Robert Bentley appointed 22 members to serve on the Alabama Commission on Improving State Government.
He signed Executive Order Number Four creating the Commission Friday.
Its duty is to work with the Legislature and the Governor's Policy Office to analyze and explore new ways to reduce
government spending with minimal or no reduction to essential state services.
"We are in challenging economic times and state government must do what every Alabama family is doing right now
and that is find ways to cut back on spending," said Governor Bentley. "The members of this commission will take an in-
depth look at the current cost structure of every state agency and look for new and effective ways to cut costs without
cutting essential services. I appreciate their willingness to serve and look forward to receiving their recommendations."
Lt. Governor Kay Ivey will serve as Chairman of the Commission. "I am honored to serve as Chairman of Governor
Bentley's Commission on Improving State Government. This Commission will be focused in its efforts. We will first
review previous studies before undertaking others. Further, I am committed to seeing that the results of this
Commission can be used and not simply "put on a bookshelf to draw dust."
A preliminary report of recommendations by the Commission will be delivered to Governor Bentley by June 1st.
Following action on recommendations in the preliminary report, a comprehensive review will begin to evaluate all
branches of state government to identify additional recommendations to improve efficiencies and reduce costs while
protecting essential services.


VIRGINIA
Governor Bob McDonnell
Governors Commission on Government Reform and Restructuring

Immediately after Governor Bob McDonnell was sworn into office on January 16, 2010, he signed two executive orders,
one of which established the Governors Commission on Government Reform and Restructuring. In response to the
unprecedented budgetary challenges for the nation and the Commonwealth of Virginia, and the increasing need for an
effective state government, the Commission conducts a necessary and comprehensive review of state agencies,
governing bodies, programs, and services in order to avoid unnecessary regulation, duplication, delay, and bureaucracy.
Such services that are found by the Commission to not be efficient or are found ineffective are to be eliminated to
ensure state revenues are maximized for a quality, functioning state government.
The Commission conducts a thorough review of Virginia state government:
Identify opportunities for creating efficiencies in state government, including streamlining, consolidating, or
eliminating redundant and unnecessary agency services, governing bodies, regulations and programs;
Explore innovative ways to deliver state services at the lowest cost and best value to Virginia taxpayers;
Seek out means to more effectively and efficiently perform core state functions, including potential privatization
of government operations where appropriate, and restore focus on core mission oriented service; and
Examine ways for state government to be more transparent, user friendly and accountable to the citizens of the
Commonwealth.
The Commission consists of up to 20 citizen members appointed by the Governor. Three members of the Virginia House
of Delegates and two members of the Virginia Senate are invited to be members. The Secretaries of Administration and

149
Finance, and the Vice-Chair of the Council on Virginias Future, serve as ex officio, non-voting members of the
Commission. Staff support that is necessary for the Commissions work will be furnished by the Office of the Governor,
the Offices of the Governor's Cabinet Secretaries, the Department of Planning and Budget, and other executive agencies
the Governor designates. An estimated 2,000 hours of staff time is required to support the Commissions work on an
annual basis, and direct expenditures for the Commission's work are estimated to be $15,000 annually, exclusive of staff
support. http://www.reform.virginia.gov/News/viewRelease.cfm?id=18

Press

Governor Bob McDonnell
Commision on Government Reform And Restructuring
Governor McDonnell Receives Full Report From Commission On Government Reform And Restructuring
http://www.alexandrianews.org/2010/2010/12/01/governor-mcdonnell-receives-full-report-from-commission-on-
government-reform-and-restructuring
Governor McDonnell was presented today with the full report from his Commission on Government Reform and
Restructuring for his review. An interim report was submitted to the Governor for his review in October. The full report
contains 133 recommendations including requiring state agencies to review current mandates; privatizing the sale of
distilled spirits; encouraging the use of high-deductible health insurance plans; and providing a more flexible work
schedule for government employees such as telecommuting, instituting a 4 day/ 10 hour work week at selected
agencies, and encouraging Q-status, which provides an option for state employees to receive health benefits and
retirement if they work a minimum of 32 hours per week. In addition, the Operational Review Task Force, comprised of
private sector leaders and state and local government officials, proposed 79 recommendations for reducing expenses
including travel, energy consumption, document/ printer/ copier management, and water usage.
The Governor will review the Commissions recommendations in greater detail over the coming weeks to determine
which ones will be advocated for administrative implementation or legislative action. The Commission will continue its
work for the remainder of the administration; its next meeting will be in the spring of 2011. The Commission was
established by Executive Order #2, which was signed by the Governor immediately after taking the oath of office on
January 16, 2010.
Speaking about the full report, Governor McDonnell remarked, The Commission has done an exceptional job at looking
through current processes and procedures within state government to come up with ways to make it more effective and
efficient for the citizens of Virginia. In this tough economy, it is essential to find ways to save time and money. I, again,
thank the entire Commission and its leaders, Chairman Fred Malek, Vice Chairmen Speaker William J. Howell and former
Senator Benjamin Lambert, for their efforts over the last six months. I look forward to reviewing these
recommendations.
Chairman Malek commented, Im pleased that your administration is already acting on some of the Commissions
recommendations. We applaud your request of agency heads to propose spending cuts of 2%, 4%, and 6%. We were
encouraged that VDOT has consolidated its local toll-free numbers into one centralized call center, reducing its staff
from 100 down to 25 employees. We are also pleased that state agencies are increasing telecommuting and
implementing strategies to decrease energy consumption by 5%. The way forward is to abolish and consolidate
programs that are ineffective or duplicative and restructure state government to more efficiently deliver core services to
Virginians.
The following recommendations are among the list that have been endorsed by the full Commission after
consideration and approval by the committees:
Privatization of the Virginia Department of Alcoholic Beverage Control (ABC) Distribution and Retail System Privatizing
ABC in Virginia will invest over half a billion dollars into transportation by eliminating a 76-year old state monopoly.

150
Require State Agencies to Review Current Mandates Challenging economic times and significant budget reductions
are cause to review current mandates placed on localities with an eye towards eliminating or suspending those
considered to be obsolete and/or those that cannot be implemented.
4 Day/ 10-hour Work Week for Government Employees Expanding this schedule beyond the existing pilot program at
the Virginia Department of Forestry. The Commonwealth could save considerable amounts of money on overtime,
energy costs and increased productivity by implementing this initiative in certain state agencies.
Promote Expanded Use of Telework and Alternate Work Schedules for Government Employees Similar in nature to
the four day, 10-hour work week, this proposal allows additional flexibility for government employees to work on a
flexible schedule or from locations other than the office. Currently 48% of state positions are eligible for alternate work
schedules.
Encourage Agencies to Offer Q-Status for Government Employees Salaried state employees would be eligible to
receive health benefits and retirement if they work a minimum of 32 hours per week. Q-Status allows agencies to save
money by reducing salaries while minimizing the impact on knowledge transfer.
Make High-Deductible Health Plans a More Attractive Option for State Employees - The Virginia Department of Human
Resource Management should continue to work with state employees to identify to make high deductible health plans a
more attractive option to increase participation and reduce costs. Giving individuals the ability to choose procedures
and treatments will empower them to make good decisions and drive down costs.
Develop Implementation Strategies for the 79 Recommendations from the Operational Review Task Force The
Operational Review Task Force, comprised of state agency heads, local government representatives, and industry
leaders from the private sector, looked for savings with commodities including energy consumption; water usage; waste
management; phones and data usage; printers, copiers and fax machines; management; asset inventory and
management; travel reimbursement; fleet management; banking services; accounts receivable; surplus property; and
insurance (risk management and health insurance). The Task Force offered 79 recommendations, which were adopted in
concept by the full commission. A list of these recommendations can be found in the appendix of the full report.






MICHIGAN
Governor Rick Snyder
Michigan Dashboard

In January of 2011 Governor Rick Snyder gave his State of the State Speech and outlined one of his vision statements
called the Michigan Dashboard (MD). The MD is a website setting out 21 measures of how Michigan is performing on
the economy, health and education, quality of life and public safety.

The dashboard will be used as a tool to give constituents the opportunity to hold their elected officials accountable for
their performance and actions. It will also provide the public and elected officials the opportunity to see how Michigan
compares in policy and legislation.
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59
www.michigan.gov/midashboard

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Press

Governor Rick Snyder
Michigan Dashboards
Governments race to finish dashboards by deadline: Millions at stake in revenue sharing
http://www.crainsdetroit.com/article/20110821/SUB01/308219946/governments-race-to-finish-dashboards-by-
deadline-millions-at-stake#
As an October deadline approaches, communities in Southeast Michigan are working quickly to qualify for the first
round of state revenue sharing under a new system devised by Gov. Rick Snyder.

For some, it will be a race to the finish to put in place a state-mandated "dashboard" system to better track fiscal
stability and other factors. Others have turned to consultants and niche experts to install software and institute best
practices.

How much revenue a community receives in revenue sharing, dis-tributed from sales tax collections, is determined from
two mathematical formulas? Both are tied to factors such as population. Constitutional revenue sharing is 15 percent of
the 4 percent gross collections of the state sales tax; statutory revenue sharing is 21.3 percent of the gross collections.

The amount of statutory revenue sharing has been declining for years because it can be changed by the Legislature.

In the upcoming budget -- the state's fiscal year begins in October -- Snyder cut last year's $300 million statutory
revenue sharing by one-third. But he made $200 million available to communities that adopt best practices -- such as
consolidating or sharing services, which must be met by Jan. 1; changing employee compensation, to be completed by
May 1; and creating a dashboard to increase transparency and accountability of government spending.

Snyder allows local governments leeway in dashboard format and the exact information presented, but he mandates
inclusion of "measures such as fiscal stability, economic strength, public safety, quality of life and other measures the
local unit select that are relevant to the local unit's strategic goals and objectives."


So far, things are looking good, said Paul Tait, executive director of the Southeast Michigan Council of Governments.

"What I'm hearing is: They are getting it done," Tait said. "The other part is that I'm hoping, and what I'm hearing, from a
lot of the communities is that they're going beyond putting the numbers out there and using it to inform citizens and
residents to drive decisions on how local government moves forward in the future."

Municipalities contacted last week reported mixed progress. Some, like Detroit, have pushed back deadlines. Others
have to make adjustments after the Michigan Department of Treasury released the official dashboard guidelines.

Oakland County completed its dashboard in February, Deputy Executive Robert Daddow said, well ahead of Snyder's
deadline. But the county's quick action has complicated matters slightly -- and the county now plans to tweak its
dashboard based on the state guidelines.

"We did it on what we feel to be appropriate criteria for Oakland," Daddow said.

The data will be updated as appropriate, likely quarterly, he said.

Even if the dashboard isn't adjusted, Daddow said, the county is meeting the state's criteria through its "popular report,"
a version of its annual financial reports that require no particular expertise to understand and are easily digestible by the
average county resident.


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"We've had that report in place for a dozen years," he said. "We've won an award for the last dozen years on that
report. ... We understand you could either do popular report or dashboard. We're doing both, and both are posted on
our website."

The city of Detroit is developing its dashboard in-house, said Dan Lijana, a communications manager in Mayor Dave
Bing's office. Data will be inputted internally and regularly updated by city departments.

The city said in June that its dashboard would be up July 1. Lijana said last week that the dashboard should be live by
Labor Day.

Detroit stands to win -- or lose -- more than $40 million in each round.

Detroit City Council President Pro Tem Gary Brown said he's worried that the city won't make its October deadline, and
has urged the administration to contract with an outside company. A private database company with a dashboard
program endorsed by SEMCOG has made its service available to Detroit for roughly $8,000 a year, Brown said.

"It seems like a no-brainer to me," Gary Brown said. "I don't have all the information (COO) Chris Brown has, but time is
running out."

Gary Brown said he's also concerned about the maintenance of the dashboard once it's created.

"(City) departments are reporting there are issues with collecting data," he said.

Sterling Heights, the fourth largest city in Michigan by population, has been keeping track of its budget data for more
than a decade through the International City/County Management Association, said Brian Baker, the city's finance and
budget manager.

"This isn't anything new for us," Baker said. "We've benchmarked our performance now for many years."

The city's Snyder-required dashboard is nearly complete, he said, and will be updated annually.

Membership in the management association costs $5,000 annually and allows the city to measure itself against 150
other cities in the country, Baker said, adding that SEMCOG partnered with Sterling Heights on the membership.

Data was collected and organized in-house and then reviewed by the city/county association. Sterling Heights is eligible
for $750,000 in this round of revenue sharing.

Wayne County is on course to meet the deadline, CFO Carla Sledge said.

The county is creating its dashboard in-house, and Sledge said it would be maintained by the county's IT department and
its office of management and budget.

The dashboard, she said, should go beyond the state's requirements, and will be updated more than once a year.

The county expects to receive $36.9 million over three rounds of state funding.

It took Keego Harbor-based Munetrix LLC about 18 months to develop its program, said Bob Kittle, president of the
company, which numbers Warren, Utica, Roseville, Ypsilanti Township, Grosse Pointe Woods, Pleasant Ridge and
Macomb County among its clients. (See story above.)

A simpler model that could satisfy the basic state requirements could be developed relatively quickly, he said, but a tool

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that enables financial data to become truly useful for a community's residents will take more time.

Utility, Tait said, will be the true measure of whether the dashboards increase transparency.

"Putting (financial information) out there has marginal value, but putting it out there with purposeful intent to help
decisions" is essential, he said. "The first task is fairly easy -- here are the numbers to put out there -- but where its utility
is in the long run is, how does my community stack up to a similar community?"


NEW JERSEY
Governor Chris Christie
Shadow Government Reform

The Shadow Government Reform legislation extends gubernatorial veto authority and additional oversight tools to the
Governors Office and State Comptroller, establishing and/or enhancing Governor Christies ability to police the actions
of designated multi-jurisdictional, regional entities throughout the state, such as water, sewer and environmental
authorities that span multiple counties; county and regional utility authorities; entities with publicly documented waste,
fraud or abuse of public resources; and entities with critical responsibilities that currently lack oversight of their
operations, spending and budgeting.
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Press
Christie proposes Shadow Government Reform: Legislation is effort to gain oversight of independent authorities
BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM
Gov. Chris Christie has taken a step to bring about what he feels is needed accountability and oversight of 25 or more so-
called independent New Jersey authorities, boards and commissions that constitute what he calls New Jerseys
shadow government.
The governor has proposed comprehensive legislation for the Legislatures consideration.
Since taking office, Christies office has aggressively policed the activities of those agencies where the governor has veto
authority and he has vetoed meeting minutes 21 times. Christie has also acted to remove commissioners at the Passaic
Valley Sewerage Commissioners and the North Jersey District Water Supply Commission, where malfeasance and
inappropriate conduct were uncovered.
Extending veto authority to entities lacking gubernatorial oversight would allow the Christie administration to attempt
to prevent those abuses before they occur, and ensure public funds are used appropriately and that ethical standards
are followed.
The Shadow Government Reform legislation would extend gubernatorial veto authority and additional oversight tools
to the governors office and the state comptroller, establish and bolster Christies ability to police the actions of
independent agencies, such as the water, sewer and environmental authorities that span multiple counties; county and

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Michael Drewniak, Governor Chris Christie Introduces "Shadow Government Reform" Legislation to Protect New
Jersey Taxpayers March 3, 2011. http://www.state.nj.us/governor/news/news/552011/approved/20110330a.html


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regional utility authorities; entities with publicly documented waste, fraud or abuse of public resources, and entities
with critical responsibilities that currently lack oversight of their operations, spending and budgeting.
Agencies that would be affected by the legislation include: the Cape-Atlantic Soil Conservation District, Cumberland-
Salem Soil Conservation District, Delaware & Raritan Canal Commission, Freehold Soil Conservation District, Jersey City
Municipal Utilities Authority, Joint Meeting of Essex and Union, Lake Hopatcong Commission, Landis Sewerage
Authority, Middlesex County Utilities Authority, Morris County Utilities Authority, Musconetcong Sewerage Authority,
New Jersey Meadowlands Commission, North Jersey District Water Supply Commission, Ocean County Utilities
Authority, Old Bridge Municipal Utilities Authority, Passaic Valley Sewerage Commissioners, Passaic Valley Water
Commission, Pequannock River Basin Regional Sewerage Authority, Pequannock-Lincoln Park Fairfield Sewerage
Authority, Plainfield Regional Sewerage Authority, Rahway Valley Sewerage Authority, Somerset-Union Soil Conservation
District, Southeast Morris County Utilities Authority, State Soil Conservation Committee and the Stony Brook Regional
Sewerage Authority.
The writing is on the wall for New Jerseys shadow government the abuse stops now, Christie said. These entities
that for too long have engaged in conduct without oversight, often at the publics expense, and with a blind eye from
members of both political parties, will no longer be able to operate with impunity.
With this legislation, my administration will be better equipped to continue putting the best interest of the public first
by cracking down on waste, impropriety and business-as-usual at these entities, where nobody is watching what is going
on, the governor said. The abuse that defies good government and the publics trust and resources is not a Democratic
problem or a Republican problem. It is a New Jersey problem that the people sent me here to fix. I urge the Legislature
to side with the taxpaying, rate paying and toll paying public, rather than the entrenched interests, and quickly take
action to end this shadow governments defiance of standards of good government.
Christie said extending or expanding his veto authority is necessary to prevent waste, abuse and unethical conduct
before it occurs and rein in the practices of authorities that have continuously flouted his maintains flout his insistence
on a high-level of accountability in their conduct.
The legislation would attempt to establish or enhance oversight and accountability at the designated entities through
the following mechanisms:
Provide gubernatorial oversight through veto within a 15-day window and mandatory service of agendas and
minutes upon Governors Authorities Unit request;
Expressly provide that board members will serve without compensation;
Provide the governor with authority to remove a member of the governing body of a regional authority for
cause;
Require financial disclosure statements from the members of the governing bodies of each regional authority;
Expressly define entities as regional authorities so that they will be subject to other forms of state oversight,
including executive orders and ethics requirements;
Explicitly grant the state comptroller the authority to inquire into the finances of the regional authorities; and
Subject all regional authorities to the state Conflicts of Interest Law administered by the state Ethics
Commission.
http://www.newjerseynewsroom.com/state/christie-proposes-shadow-government-reform

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H.R 2146-
The digital Accountability and Transparency Act, was approved by the House Committee on Oversight and
Government Reform on a unanimous bi-partisan voice vote.

Requires each person, state, local, or tribal government that received federal appropriated funds, either directly
or as a subcontractor or subgrantee, to report at least once quarterly each receipt and use of such funds to the
Federal Accountability and Spending Transparency Board established by this act.
Requires each executive agency to report all federal obligations and expenditures to the board.
61



H.R. 829-
The Contracting and Tax Accountability Act of 2011, was introduced February 28,2011 by Rep. Jason Chaffetz, R-Utah,
passed on a voice vote.

The bill prohibits any person who has a seriously delinquent tax debt from obtaining a federal government contract or
grant. The Committee accepted an amendment from Rep. Jackie Speier, Calif., which would require an agency to notify
Congress if a waiver to this law is granted.


ARIZONA
Governor Jan Brewer
Modern State Government: The Cornerstone of Reform

To consistently rank among Americas top economic-growth states, Arizona needs a modern State Government. Creating
such a government requires a series of reforms in budgeting, programs and operations.

STATE BUDGET REFORMS
Arizonas economic competitiveness and education reform efforts depend on State Government getting and keeping its
fiscal house in order. Fiscal stability at the State level encourages private-sector job growth, eco-nomic vitality, higher
State revenues, and improved opportunities for the State to provide appropriate sup-port for its core functions: public
safety, education, and assistance for the truly needy.

As was discussed in detail in the FY 2012 Executive Budget Recommendation, State Government needs a series of
common-sense budget reforms e.g., a statutory spending limit, an enhanced rainy day fund, and greater executive
authority to reduce expenditures so that the promiscuous State spending of the mid-2000s and the resulting budget
shortfalls never recur.

Spending Limits. The State needs a statutory spending limit that allows for natural budget growth but bars State
Government from making reckless decisions based on short-term, abnormal or illusory bubble revenues. We also need
a plan to pay down the State debt, resolve the rollover payments and other budget-balancing fiscal bridges that the
State was forced to employ during the re-cession, and invest in improvements to State Government operations during
the good times.
Improved Budget Stabilization Fund. I repeat my call for a new and improved Budget Stabilization Fund, established
with constitutional safeguards, to ensure that our rainy day fund will be there when it is raining.
Executive Authority to Reduce Expenditures. In recognition of the deliberative nature of legislative bodies, the
Constitution should be amended to al-low Arizona governors to reduce existing expenditures to balance the budget
during a fiscal emergency and to reduce expenditures through the current line-item veto authority.

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http://thomas.loc.gov/cgi-bin/bdquery/z?d112:HR02146:@@@D&summ2=m


156

STATE OPERATIONAL REFORMS
State budget reforms are not enough; a top-performing state economy must have state government operations that are
cost-effective and nimble. The Governors Commission on Privatization and Efficiency will continue its work on
improving government efficiency. In addition, Arizona needs to modernize its State personnel and retirement systems
and reinforce its status as a right-to-work state.

Together, the following operational reforms will ensure that the State of Arizona has a limited, efficient, and nimble
government.

Personnel System. Arizona is saddled with an overly bureaucratic State personnel system from a bygone era. Our
personnel system should help State Government attract and retain the best employees, and it should in-crease
employee accountability and agency efficiency.

Under our proposed new system, the vast majority of State employees those who do their jobs well and are
committed to effectively serving the public will have nothing to fear.

As of a specific date, the new plan will apply to all State employees in supervisory positions, to newly hired employees,
and to covered employees being promoted or otherwise voluntarily changing jobs. The plan will also allow for existing
covered employees not yet subject to the required changes to opt into the new system. This modern personnel
system will be a strong selling point for business attraction, retention and expansion that require a nimble and
responsive state government.

Retirement System Reform. While we greatly value our State, county and municipal employees, we must ensure that
their entitlements are not greater than those of other large employers or more than Arizona taxpay-ers can support.
We will continue and accelerate the retirement benefit reforms that began last year to ensure the solvency of our
retirement systems while keeping our commitment to those who have played by the rules.

Right-to-Work Protections. Arizona needs to strengthen the right of every employee to have an individual relationship
with his or her employer, and Arizona must remain a strong right-to-work state. The imposition of any meet-and-confer
process should be enacted in statute and not simply by a Governors command, and I recommend that the Legislature
prohibit.
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PUERTO RICO
Governor Luis Fortuno
Government Reform Initiatives

eGovernment Puerto Ricos PR.gov - changing the way the government delivers services to save individuals and
businesses time and money and ensure government red tape doesnt get in the way of entrepreneurship and job
creation. This year alone, citizens will save an estimated $50 million and 4 million hours due to online services that once
required in-person visits to government offices. The initiative works in conjunction with Puerto Ricos reformed Permit
Process, which streamlined and simplified the permitting process to facilitate private development and investment by
dramatically reforming the unwieldy government permits needed to start a business from roughly 28 permits down to
one and enabling entrepreneurs to obtain their permit on-line.

Caribbean Business: pr.gov: Changing how government delivers service
Online platform saves time and money for citizens, businesses and government agencies

62
Janice E. Brewer, The Four Cornerstones of Reform, January 18, 2011.
http://www.azgovernor.gov/dms/upload/PR_011811_FourCornerstonesofReformPolicyAgenda.pdf


157

By John Marino and Carlos Marquez; Oct. 20, 2011

Puerto Rico government officials believe their newfound ability to deliver documents and services instantly to citizens
via the governments website, www.pr.gov, is the most revolutionary development in Puerto Rico in public
administration in the last decade.

Not only has the move made the lives of millions of island residents easier by enabling them to receive
documents and services in minutes over the Internet that once took a daylong visit or more to a government office, but
the pr.gov initiative has also required officials to reengineer government processes and structures to bring about the
greater efficiency and transparency public service demands today.

Its the best project we have out there by miles. This is one of the most important projects of the
last 10 years, said Office of Management & Budget Director Juan Carlos Pava. We are revolutionizing how the people
interact with government.

We want to make the government more accessible, added Juan Eugenio Rodrguez, the government
chief information officer (CIO). The government Internet site aims to unify the provision of government
services in an effective and integrated way.

Pava and Rodrguez recently met with CARIBBEAN BUSINESS to provide an update on government efforts to streamline
services and transactions it provides citizens through its website. The initiative is expected to save citizens some $50
million and four million hours this year by empowering them to do things over the Internet that once required physically
visiting a government office.

Since its launch in 2009, pr.gov has processed more than four million transactions, including about one million criminal
background checks, more than 760,000 child support certificates from the Child Support Administration (Asume by its
Spanish acronym), more than 170,000 filing certificates for income tax returns from the Treasury Department, 170,000
debt certificates from Treasury and more than 1.5 million water and electricity payments.

This calendar year, the government site is expected to process more than 3.5 million transactions online compared to
2.588 million in 2010. In 2009, there were 54,491 transactions.

Monthly visits to the site reached an all-time high of 973,000 in March, and the site is on its way to grabbing one million
unique visitors a month, according to officials, who also say it is the No. 1 Google-searched site in Puerto Rico.

Everyone dreads going to a government office, Pava said, in summing up the central appeal of the initiative. It is
changing the experience of citizens with their government.

SERVICES CONTINUE TO GROW
The government website began in early 2010 with the launch of four services that were most in demand by the public:
the issuance of good conduct certificates from the Police Department and child support payments from Asume, as well
as debts paid to Treasury and filing tax returns, and paying taxes online.

We picked those services and transactions that have the biggest volumes in order to have the biggest impact,
Rodrguez said.

A week after Gov. Luis Fortuo announced the launch of the service in January 2010, some 20,000 transactions had been
undertaken onlinean immediate sign of the popularity of the service.


158
Since then, more than 100 services and transactions have been placed online over the past 18 months, cutting costs and
saving time for both the government and citizenry, with pr.gov processing more than four million transactions since its
launch.

Transactions include getting copies of marriage and birth certificates, paying traffic fines and electricity bills, renewing
drivers licenses and automobile registrations, and filing annual corporate reports.

About half the services offered through the site are related to the Fortuo administrations permitting system overhaul
and the establishment of the Integrated Permits System (SIP by its Spanish acronym), as the entire permitting process is
now done online.

During the next few months, the government website will be launching another wave of Internet-accessible services that
will be of particular use to businesses, government CIO Rodrguez told CARIBBEAN BUSINESS...

BUSINESSES HAVE ALSO BENEFITED
While many of the services are aimed at citizens, the initiative is also a boon to business in many ways.

Rodrguez said many of the new services being placed online are those that are used remotely by offshore companies.
We want to promote business to create more jobs and investment.

About half of the 100 services currently offered online are related to the new online permitting system introduced this
yearan all-digital system that only accepts plans and documents in digital formats. Requests for more than 39,000
permits have been fi led; 82% of them have been awarded and 42% of those have already been issued online. In
addition, approximately 60,000 corporate annual reports have been filed through pr.gov.

Many entrepreneurs have now turned to registering their new corporations online. Through August, 3,519 corporate
registration filings have been conducted through pr.gov. Meanwhile, some five million corporate reports and other
documents at the State Department are being scanned and placed online as part of the effort.

We want to promote business to create more jobs and investment, Rodrguez said. We have to be competitive. We
have to make life easy for businesses.

Eventually, pr.gov will be developed into a one-stop shop for businesses where they will be able to conduct all their
transactions online. The idea is for the system to eventually signal the business owner when tax payments are due or
when licenses expire, and then to provide an instant means for undertaking the required transaction.


GOVERNMENT AT ITS BEST
Government officials are very satisfied with the reception of pr.gov, but they say they are rolling out a grassroots media
campaign to champion its benefits because the more people using the system, the greater the savings in time and
money for government, businesses and citizens.

It is government at its best, Pava said

We didnt spend millions and millions of dollars on this, Rodrguez added. We were able to do it with our own
resources. The officials also highlighted how important the pr.gov program is to Gov. Fortuo and his governing
philosophy. They said he has been personally involved in the initiative since the beginning.

Gov. Fortuos vision has always been to provide agile government services to individuals, businesses and government
through the Internet, Pava explained. Pr.gov simplifies doing business in Puerto Rico by reducing time and transaction
costs, facilitates the establishment and operation of companies, and increases productivity.

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NEW JERSEY
Governor Chris Christie
Pension and Benefit Reform

Effective June 28, 2011, Governor Christie signed into law the bi-partisan pension and health benefits reform bill which
increases pension and health contributions paid by a half-million teachers, police and other public workers and removes
health benefits from collective bargaining for four years, saving $132 billion over the next 30 years for the taxpayers of
New Jersey.

The reform legislation includes:
Improves the projected funding ratio of the pension system to 88% by 2041. This helps protect the pension
system for retirees by increasing the projected funded ratio of the combined state and local systems from the
current 62% to more than 88% over the next thirty years.
To further ensure the stability of all pension funds, introduced a Target Funded Ratio (TFR) for all pension funds
to maintain at least 80% funding once that level is achieved.
Changes for all new Public Employee Retirement System (PERS) and Teachers Pension and Annuity Fund (TPAF)
Employees by updating the formula for retirement eligibility which includes establishing the normal and early
retirement age at 65 years; adjusting the early retirement penalty to 3 percent for each year; and increasing
eligibility for early retirement to 30 years of service.
Changes for all new Police and Fire Retirement System (PFRS) Employees by updating the formula for Special
Retirement eligibility from 65% with 25 years of service to 65% with 30 years and 60% with 25 years.
The legislation creates a new joint management/labor Plan Design Committee for each pension fund. Once a
fund achieves its Target Funded Ratio (TFR), the Committees will have new authority to change important plan
design features such as retirement ages, employee contribution levels, and future cost-of-living adjustments
(COLA) so long as the fund is not projected to fall below its 80% TFR over the subsequent 30 years.
Changes for all current and future Retirees by suspending automatic annual payment increases including the
elimination of all statutory Cost of Living Adjustments (COLAs). These types of changes are now governed by the
Plan Design Committees described above.
Amortization methodology is changed from a percentage of pay schedule (which defers the retirement of any
unfunded liability) to a level dollar amount each year in order to retire part of the systems unfunded liability
each year and earlier than the previous methodology.
Amortization methodology is changed from a 30 year open period (which retires less of the unfunded liability
each year and results in a lower funded ratio) to a maximum open period of 20 years (phased-in over 19 years).
63

LOUSIANA
Governor Bobby Jindal
Conservative Reforms to Streamline Government

Streamline Services in Transportation
Louisianas Department of Transportation and Development (DOTD) is integrating the staff and functions estimated to
save $730,000. DOTD eliminated the Office of Public Works and Intermodal Transportation and consolidated the
organization by eliminating the executive position of Assistant Secretary of Public Works and Intermodal Transportation.

DOTD also closed the Melville ferry which only had 7,200 drivers use it each year for a cost to the state of $200 round
trip. Closing the ferry saved the state $720,500 per year. Earlier this year, DOTD closed the New Roads Ferry, which had

63
Adapted from (http://www.nj.gov/treasury/pensions/)

160
only 235,000 riders per year at a cost to the state of $10.19 per round trip. The new Audubon Bridge provides a bank-
to-bank route, making the ferry obsolete and saving the state $2.3 million per year.

As of November 2011, DOTD also reduced its passenger fleet by 181 or 10 percent. DOTD made this reduction by
executing a Cooperative Endeavor Agreement with Enterprise Car Rental on September 17, 2010, allowing Enterprise to
occupy DOTD Headquarters service station. Other state agencies are now allowed to rent from this location, reducing
the need for government owned vehicles.

Streamline Department of Revenue
Louisianas Department of Revenue streamlined operations at its regional offices going down from 8 to 3 offices in
state. This consolidation created a streamlined management structure that allowed greater uniformity in the delivery of
customer service to individual and business taxpayers. Reducing the number of management staff needed to administer
each office also allowed the department to focus more resources on customer service than administrative tasks.

Privatize Claims Management
Louisianas states Division of Administration privatized claims management and loss prevention in the self-insurance
program, resulting in estimated savings of at least $20 million over five years, instant access to technology
improvements, and a reduction of 85 state employees.

Using private state-of-the-art claim and loss-control systems, the state achieves quicker resolution and lower costs per
claim, saving through reduced indemnity benefits, lower medical costs, and increased employee productivity, as well as
through an integrated medical bill review systems and pharmacy management systems. Savings are also resulting from
a combination of integrated technology improvements and expertise that could not be achieved at the state level.

Reform Pension System
Public retirement debt for Louisianas four state retirement systems totaled $18.2 billion in FY 10. The annual debt
payments coming due are increasing steadily, forcing employer contributions to the systems to increase. These rising
costs have placed a squeeze on taxpayer dollars, crowding out State investments in education and health care. The state
continues to accelerate debt payments, tighten benefit provisions, ensure proper pension system oversight, and expand
employees ability to choose the best retirement options. These sorts of reforms will protect state revenues while
ensuring a sustainable retirement benefit for workers.

In the state pension system, Governor Jindal worked to simplify retirement debt payments and direct more investment
gains to paying down debt, which is estimated to reduce the states annual payment to the retirement systems by at
least $500 million over the next 30 years.

A total of $20 million was appropriated to the Louisiana State Employees Retirement System and $40 million to
Teachers Retirement System of Louisiana to pay down the UAL. The benefit structure of the four state retirement
systems was reformed to include higher contribution rates, anti-spiking provisions, and higher retirement eligibility
requirements for new employees. Local government rising pension costs were reduced by ensuring that employees pay
more to support their own retirement benefits as pension costs rise.

Privatize Veterans Affairs Services
The Louisiana Veterans Homes system implemented a comprehensive plan for delivery of services which featured a
consolidation of pharmacy services as well as a contractual physician and therapy services, all of which resulted in a
savings of nearly $2 million for the state, while at the same time accessing more self-generated funds.

LDVA Veterans Homes are now completely self-sustaining - using no State General Funds effective FY11/12. These five
state-of-the-art homes now rank in the top 5% of all state veterans homes nationally for cost efficiency and occupancy
rates - over 95% in Louisiana, compared to the 72% private industry average.


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Streamline Coastal Protection and Restoration
Louisiana created the Office of Coastal Protection and Restoration (OCPR) within the Office of the Governor -
restructuring the states coastal program, integrating staff at the Department of Natural Resources that were handling
coastal restoration work with those employees at the Department of Transportation and Development who were
working to build and maintain hurricane and storm surge protection structures.

Now, Louisiana's coastal restoration and protection efforts have been integrated, streamlining the building process and
ending the disparate attempts by multiple agencies to receive funding for similar tasks. State coastal restoration and
protection officials estimate approximately $30 million in funds dedicated specifically to coastal restoration and
hurricane protection will be saved over a five year period by utilizing personnel already working at other agencies and
also working cooperatively with state colleges and universities to conduct research and gather data pertaining to
restoration and protection efforts.

Reduce Citizens Insurance Support
Louisiana Citizens Insurance Corporation, the state's insurer of last resort, is successfully transferring policies to the
private market. In 2008, Citizens had 174,000 policies on its books. Today, Citizens has 105,000 policies and expects to
shed more, as policyholders transition to the private insurance, which reduces state support for the program











Chapter 7: Creating Safer Communities

Public Safety is an essential part of life for all Americans. Each state has its own economic realities, but public safety is
integral no matter where one calls home. Many cities have seen renewals in part because of innovative public safety
and criminal justice reforms. Governors are on the front lines in keeping their citizens safein this chapter we will
highlight several innovative policy developments proposed by Republican Governors across the country.

Featured states and programs in this chapter include:

ALABAMA Governor Robert Bentley, ALverify

ALASKA Governor Sean Parnell, Choose Respect and Safe Homes, Strong Families Initiatives

GEORGIA Governor Nathan Deal, Criminal Justice Reform Council

IDAHO Governor Butch Otter, Idahos METH Project

INDIANA Governor Mitch Daniels, Department of Child Service Improvements


162
IOWA Governor Terry Branstad, Ending Automatic Restoration of Felon Voting Rights

IOWA Governor Terry Branstad, Recovering Unnecessary Expenditures

LOUSIANA Governor Bobby Jindal, Keeping Louisiana Communities Safe: A summary of accomplishments from
the 2011 Legislative session

NORTH DAKOTA, Governor Jack Dalrymple, Providing Public Access to Offender Status Reports

PENNSYLVANIA, Providing Citizens with Flood Recovery Tips Online

TEXAS Governor Rick Perry, Reforming Juvenile Justice

VIRGINIA, Governor Bob McDonnell, Preventing Substance Abuse on College Campuses in Virginia

VIRGINIA and (Regional: DC, MA, DE, PA and WV) Ensuring Road Safety through Check Strikeforce Campaign

PUERTO RICO, Governor Luis Fortuno, Puerto Ricos Public Safety Efforts


ALABAMA
Governor Robert Bentley
ALVerify

On September 26, Governor Robert Bentley announced the availability of a new web-based system that will enable
county license plate issuing officials and their staffs to meet the residency verification requirements set out in Alabamas
new immigration law in processing motor vehicle registration and title transactions. The new program is compliant with
the Federal Drivers Privacy Protect Act. ALVerify was developed by the Center for Advanced Public Safety at the
University of Alabama and is the result of a collaborative effort between the Alabama Department of Revenue and the
Alabama Department of Public Safety. The system links the agencies motor vehicle and driver license databases into an
electronic application that can be securely and easily accessed to check citizenship verification.
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To complete the residency verification requirements for license plate renewals and other similar transactions, the
customer will present his or her Alabama driver license or Alabama non-drivers license identification card. County
licensing officials and their staffs will then enter the driver license or non-driver identification card number, expiration
date and last name into ALVerify. The information will be verified against the Department of Public Safetys database
and will return an information successfully validated response with a verification code, used by the county to
document the residency verification, if all of the information matches and the Alabama driver license or non-driver
identification card is not expired. The program will return a failure response if all data elements do not match or if the
Alabama driver license or non-driver identification card is expired.

Press

ALVerify debuts across Alabama with two goals
Posted: Sep 26, 2011
By John Shryock
http://www.wsfa.com/story/15552461/alverify


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Adapted from: http://www.governor.alabama.gov/news/news_detail.aspx?ID=5640

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MONTGOMERY, AL (WSFA) -

The state of Alabama says it has averted an apparent crisis discovered by opponents of the controversial, new
immigration law.

The new law, on hold until a federal judge reviews it, would have inadvertently required a person to prove their
residency in person at drivers license offices before being issued new plates or registrations. The inability to register by
mail or online could have flooded already taxes license offices.

Governor Robert Bentley said Monday that a new web-based system will enable county license plate issuing officials and
their staffs to meet the residency verification requirements of the pending legislation while streamlining the processing
motor vehicle registration and title transactions.

Governor Bentley, Department of Revenue Commissioner Julie Magee and Department of Public Safety Director Colonel
Hugh McCall showed off the new system, called ALVerify.

Developed by the Center for Advanced Public Safety at the University of Alabama, the system links the agencies' motor
vehicle and driver license databases into an electronic application that can be securely accessed to check citizenship
verification.

"ALVerify is a much needed solution to the citizenship requirements required by the new immigration law," Governor
said.

ACLU Alabama Legal Director Allison Neal says the program is nothing more than an unnecessary expenditure.

The exact cost of the program is not immediately known, but Commissioner Magee said the bill is on its way.

To complete the residency verification requirements for license plate renewals and other similar transactions, the
person presents their Alabama driver license or non-driver's license identification card.

County licensing officials then enter the card's ID number into ALVerify. The program will return a "failure" response if
all data elements do not match or if the Alabama driver license or non-driver identification card is expired.

The secure website to access ALVerify is http: www.mvtrip.alabama.gov


ALASKA
Governor Sean Parnell
Choose Respect and Safe Homes, Strong Families Initiatives

Governor Parnell signed House Bill 127, a bill the Governor introduced which increases the penalties for child abuse and
child exploitation. HB 127 was part of Governor Parnells Choose Respect and Safe Homes, Strong Families Initiatives.

House Bill 127:
Raises the penalties for online enticement of a minor for repeat offenders from a class B felony to a class A
felony;
Creates a new crime of sending explicit images of a minor;
Clarifies that a person who commits the crime of online enticement of a minor or sending an explicit image
of a minor can be prosecuted in Alaska if the victim is located in Alaska, regardless of the offenders location;
Updates stalking statutes to include the use of global positioning systems (GPS) or installation of a device to
observe, record, or photograph events occurring within the victims office, home, or automobile; and

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Prohibits a peace officer from engaging in sexual acts with a person in the officers custody or apparent
custody, or in the custody of a law enforcement agency.


GEORGIA
Governor Nathan Deal
Criminal Justice Reform Council

In April 2011, Gov. Nathan Deal signed HB 265, a bill to create the Special Council on Criminal Justice Reform for
Georgians. The council will report its findings no later than Jan. 9, 2012, and will consist of 13 members tapped by Deal,
Speaker David Ralston, Lt. Gov. Casey Cagle and Chief Justice Carol Hunstein all of which played a vital role in crafting
the legislation.
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Press

Criminal justice reform panel named
By Bill Rankin
The Atlanta Journal-Constitution
Tuesday, May 17, 2011

Thirteen lawyers, lawmakers and judges will explore ways to reform Georgia's criminal justice system, which spends $1
billion a year to lock up lawbreakers.

The Special Council on Criminal Justice Reform, which includes the state's chief justice, will explore ways to change
sentencing patterns and will report its findings by Nov. 1. The council was established by House Bill 265.

It is our hope to uncover new approaches to make Georgia communities safer while increasing offender accountability,
improving rehabilitation efforts and lowering costs, Gov. Nathan Deal said.

Deal appointed four members to the council, and House Speaker David Ralston, Lt. Gov. Casey Cagle and Chief Justice
Carol Hunstein each appointed three members.

State lawmakers on the council are: Reps. Mary Margaret Oliver, D-Decatur; Jay Powell, R-Camilla; and Willie Talton, R-
Warner Robins; and Sens. John Crosby, R-Tifton; Bill Hamrick, R-Carrollton; and Ron Ramsey, D-Decatur.

Other members of the council are: Hunstein; Todd Markle, Deal's executive counsel; Douglas County District Attorney
David McDade; Atlanta lawyer Linda Evans; Atlanta lawyer Ken Shigley, president-elect of the State Bar of Georgia; and
Superior Court Judges Ural Glanville of Fulton County and Michael Boggs of the Waycross Judicial Circuit.

The group will work with The Pew Charitable Trusts, a nonprofit that will analyze the ideas of the council. It will report its
findings and recommendations by Nov. 1 to a group of 16 legislators who will consider legislation for next years session.

www.ajc.com/news/georgia-politics-elections/criminal-justice-reform-panel-948775.html


IDAHO

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Deal enacts criminal justice reform council: Governor signs legislation in Hall County drug court where his son is presiding judge.
Office of Governor Nathan Deal. April 22, 2011.
http://gov.georgia.gov/00/press/detail/0,2668,165937316_169688037_170658299,00.html

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Governor Butch Otter
Idahos METH Project

Idaho spends between $60 to $102 million annually to incarcerate and treat offenders who admit to having a Meth
problem - this represents between 32%-55% of the Idaho Department of Correction's total budget
52% of Idaho inmates directly attribute Meth use to their incarceration
89% of female offenders in county jail in Idaho indicate they have a problem with Meth-73% of these
women indicate that Meth is their drug of choice
As of 2007: 70% of Federal drug offenses in Idaho involved methamphetamine
80% of child placements by Health and Welfare are directly related to drug abuse with methamphetamine being the
most prevalent drug of abuse
The Idaho Department of Health and Welfare spends an average of $500,000 per month on Meth-related treatment

The Problem
As of January 2008, Idaho was overwhelmed by methamphetamine abuse:
1 in 5 Idaho teens saw little or no risk in trying Meth once or twice
63% of Idaho felony drug court participants indicated that Meth was their drug of choice
80% of the child placements by the Idaho Department of Health and Welfare were directly related to drug abuse
with Meth being the most prevalent drug of choice

METH Project Campaign
Since January 2008, the Idaho Meth Project has sustained a large-scale, statewide prevention campaign spanning TV,
radio, billboards, high school newspapers and the Internet. This campaign has included:
48,210 TV ads
54,655 Radio ads
726 Billboards
5,892,316 Print and Online Impressions
During this same period of time, the Idaho Meth Project also conducted over 900 community and school presentations
throughout the state of Idaho.

Impact
Idaho Market Results since January 2008:
Compared to the 2007 benchmark survey, Idaho teens and young adults have come to view Meth as more dangerous
and recognize the Idaho Meth Project as a key source of information.
65% of teens (up 10 points) now believe there is "great risk" in taking Meth just once or twice
Idaho teens are now more aware of the specific dangers of Meth use. Significant increases in perceptions of risk
in trying Meth just once or twice were reported in every one of the 14 risk areas measured since the benchmark
survey in 2007, including:
o Getting hooked on Meth (81% "great risk," up 10 points)
o Suffering brain damage (73% "great risk," up 15 points)
o Losing control of themselves (78% "great risk," up 15 points)
o Stealing (70% "great risk," up 16 points)
o Becoming violent (64% "great risk," up 14 points)
o Becoming paranoid (64% "great risk," up 14 points)
o Being a negative influence on a brother or sister (83% "great risk", up 11 points)
o Having sex with someone they dont want to (71% "great risk," up 13 points)
o Turning into someone they dont want to be (80% "great risk," up 11 points)
o Tooth decay (65% "great risk," up 17 points)
o Lack of hygiene (67% "great risk," up 16 points)
93% of teens in Idaho have seen anti-Meth advertising, and 80% have seen or heard ads at least once per month

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88% of teens agree the ads gave them the impression that Meth is dangerous to try just once, and 81% report the
ads made them less likely to try or use Meth
92% said that if their brother, sister, or a friend were thinking about trying Meth they would want them to see or
hear one of the Idaho Meth Project's ads
88% of teens strongly disapprove of trying Meth once or twice, up 8 points compared to the 2007 benchmark
65% of teens say they have told friends not to use Meth, up 8 points since the benchmark
Press
Idahoans battle meth problems
Thursday, September 29th, 2011
What is your definition of meth?
It is horrible. Meth is very addictive.
Do you still do meth?
No, never again.
What made you quit?
It gets to the point where you start hearing, sell the playpen and [the baby] can sleep with us. Thats when you know
you are going way too far, is when you starts messin with kids stuffs youve gone too far, Krista Doe*, a 28-year-old
Boise State alumna, said. She is an ex-meth addict celebrating a year and a half clean.
The Idaho Meth Project website states 88 percent of Idaho teens strongly disapprove of taking meth even once or twice
up 8 percent from 2007 and 65 percent of all teens surveyed now see a great risk in trying the drug, up 10 percent
from 2007. Most adults are mature enough to make the decision to not use meth, but teens are more likely to try
something at least once. This doesnt entirely exclude college students, as evidenced by Does story.
Many new users are middle to upper class young people who want to try it, according to the Boise Police Department
(BPD). This threatens suburban communities such as Boise that have a prevalent college population. Meth is moving
toward more urban settings and attracting the younger crowd who may be more willing to try anything at least once.
The most at-risk population are young people, teens to early to mid-20s, who lack the maturity to reject meth when
offered to them, said Lynn Hightower, Public Information Officer of BPD. According to Hightower, meth-related arrests
are surprisingly common in Boise. There were 142 meth related arrests in Boise City between Sept. 1, 2010 and Sept. 1,
2011.
Does addiction started when her then-boyfriend received a gram of meth from his dealer as a gift for completing a year
of parole.
He sort of just came home and said, hey look what I got, Doe said.
This gift triggered her and her then-boyfriend into a four-month spiral where she lost thousands of dollars and
jeopardized her infant sons life. Drug dealers take advantage of meths addictive properties by charging extremely high
prices after giving it away. Does tolerance grew, forcing her to do more meth for longer periods of time.
Meth is very addictive. It is very consuming. You get stuck on one thing and that is it, Doe said.

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She said she would play Scrabble for hours on end, forcing her to miss work.
We would take a Scrabble board and just try to make paragraphs out of all of the tiles, she said.
Meth users can lose control over of their lives, as their day-to-day routine includes using or supporting their habit.
Money determines an addicts use.
You see a piece of tin foil or a friend and you will have some, and thats $60 to $100, then another and another, Doe
said.
Money became stretched between meth, rent and food. According to Doe, that is when her life began to fall apart.
I started getting to the point where there was nothing left to sell, Doe said.
Idaho has institutional barriers to prevent meth use. DrugFree Idaho works with employers to screen employees who
consent to a drug test.
Sometimes forcing individuals to choose between their habits or their jobs and making available the resources and
support they need to help them stay employed while they battle substance issues can make all the difference,
Marianne King, the executive director of DrugFree Idaho, said.
According to King there were two positive tests from employees in the Treasure Valley the week of Sept. 15 alone.
Idahos most successful anti-meth campaign is the Idahos Meth Project. Their graphic and ultra-realistic commercials
speak to younger crowds, including Boise State students.
*Names changed for anonymity.
http://arbiteronline.com/2011/09/29/so-who-in-boise-wants-some-meth/

INDIANA
Governor Mitch Daniels
Department of Child Service Improvements

As one of his first acts as Indianas new leader, Governor Daniels created the Indiana Department of Child Services (DCS),
a new stand-alone agency focused solely on administering Indianas child welfare and child support functions. The
Administration worked with the General Assembly to direct the hiring of 800 new Family Case Managers doubling the
current number during a difficult budget session. During this time the qualifications for new caseworkers was
modified and a 12-week mandatory training program was implemented to ensure new staff were better prepared to
serve the children and families they met.

Indiana also implemented a new child welfare practice model that changed the manner in which caseworkers interacted
with families. Child and Family Team meetings were held to help families address their individual issues and needs, with
the safety and well-being of the children the primary focus. Caseworkers were supported by a new statewide Child
Abuse and Neglect Hotline and the creation of Practice Indicators, a data management tool used to track monthly trends
on both a local and statewide basis. With the Practice Indicators in place, the Agency has been able to demonstrate
steady, often dramatic, improvement in Indianas child welfare system, especially in the number of children in care and
the number of adoptions.


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The Department is also focused on keeping children with their families, a best practice nationwide. The Safely Home-
Families First approach identifies those factors that will allow a child to stay safely at home with appropriate supports.
Children are placed with relatives, rather than in foster care, when safety cannot be maintained. The Agency also seeks
to keep children in the most homelike setting and has made significant strides in reducing the number of children in
institutional settings by supporting step-down programs that have seen fifty percent of the children in these facilities
moved into foster homes or even reunited with their families. Again, data measures have shown that Safely Home-
Families First efforts are maintaining child safety while keeping children with their families or extended families.

Governor Daniels also fulfilled a campaign promise by addressing issues within the child support system to ensure
Indianas children received the financial support due them. By instituting license revocation initiatives and passing
casino withholding legislation, Indianas Child Support Bureau has distributed more money to children than ever before.


IOWA
Governor Terry Branstad
Ending Automatic Restoration of Felon Voting Rights

Governor Branstad signed Executive Order 70, which ends automatic restoration of felon voting rights and requires
felons who have lost their voting rights to pay their debt to society, including restitution, before their voting rights are
restored by the Governor. This is critically important for victims of crime.


IOWA
Governor Terry Branstad
Recovering Unnecessary Expenditures

Governor Branstad signed into law HF 493, which requires public employees charged with a felony, to pay a civil penalty
equal to the cash wages received during a paid leave of absence and any contract termination payments if convicted.


LOUSIANA
Governor Bobby Jindal
Keeping Louisiana Communities Safe

Louisiana covered a number of safe community initiatives in their 2011 legislative session. Summaries include:

HB 55 by Representative Ledricka Thierry prohibits certain sex offenders from using or accessing social networking
websites, chat rooms and peer-to-peer networks. This legislation criminalizes the accessing or using of such social media
by registered sex offenders who: 1) were previously convicted of indecent behavior with juveniles, pornography
involving juveniles, computer-aided solicitation of a minor or video voyeurism; or 2) were previously convicted of a sex
offense in which the victim of that sex offense was a minor. Whoever commits this crime will, upon first conviction, be
fined up to $10,000 and imprisoned for up to ten years. Upon a second or subsequent conviction, they will be fined up
to $20,000 and imprisoned for five-20 years.

HB 86 by Representative Bodi White will amend the sexual battery, second-degree sexual battery, oral sexual battery
and molestation of a juvenile statutes to enhance the penalty for committing these crimes against such vulnerable
victims, and establishes a new penalty of 25-99 years at hard labor for committing one of these crimes on these
individuals. .


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HB 49 by Representative Walt Leger cracks down on human trafficking. Currently, our human trafficking statutes
criminalize the actions of the human trafficker, but they do not address a person who knowingly facilitates the crime.
This legislation will enable the equal punishment of a person who knowingly helps, aides or abets a human trafficker
with the current punishment for the human trafficker. Also, this legislation expands the type of actions that put a
criminal under the human trafficking statutes, including the advertisement of a child for sexual purposes.

HB 131 by Representative Ricky Templet works to ensure sex offenders comply with their registration requirements.
Currently, a sex offender is required to get a drivers license or a state identification card which states sex offender on
it in bold orange letters. This legislation makes it a violation of a sex offenders registration requirements if they fail to
get a drivers license or identification card with sex offender labeled on it, are in possession of identification that is
altered with the intent to defraud or if they are in possession of counterfeit identification.

HB 12 by Representative Ricky Templet criminalizes fake bath salts and synthetic marijuana. Currently, when a specific
chemical compound of synthetic marijuana or bath salts is criminalized, criminal drug manufactures change the chemical
makeup of the drug in order to make a legal compound. This legislation seeks to put a stop to this cycle. It creates and
criminalizes base chemical groups of synthetic Cannabinoids and Cathinones by adding those substances to Schedule I of
the Controlled Dangerous Substance Act, and any manipulation or addition to these base chemical groups will be
criminalized as well.

HB 94 by Representative Kay Katz transfers the Missing and Exploited Children Information Clearinghouse from the
Department of Children and Family Services to the State Police, providing real-time, twenty-four hours a day, seven days
a week, coordination between the National Crime Information Center and the Missing and Exploited Children
Information database. This will help assist child crime victims, including those who are victims of human trafficking.


NORTH DAKOTA
Governor Jack Dalrymple
Providing Public Access on Offender Status

North Dakota has developed ND SAVIN (North Dakota Statewide Automated Victim Information and Notification),
allowing free 24/7 access to notifications and information regarding offender status information. The program was
created through a contract with a private company with North Dakotas Criminal Justice Information Saving (CJIS)
Program. The system gathers information from courts, county jails, the ND Department of Corrections and
Rehabilitation, law enforcement and the Office of the Attorney General. Offender status information is also integrated
with the CJIS Portal and can be exchanged statewide.

For more information: http://www.nd.gov/cjis/savin/index.html

PENNSYLVANIA
Governor Tom Corbett
Providing Citizens with Flood Recovery Tips Online

In the aftermath of Tropical Storm Lee in September 2011, the Corbett administration unveiled the Flood Recovery
Guide website. This online guide of flood recovery information is fully available to the public online and provides
information on state/federal assistance, water and food safety, flood-related illness treatment, clean-up guides, and
other information to help Pennsylvanians work through the damage from the storm.

The website can be found at: http://www.pa.gov/portal/server.pt/community/flood_recovery/20465



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TEXAS
Governor Rick Perry
Reforming Juvenile Justice

Following allegations of abuse and neglect by its administrators, Governor Rick Perry placed the Texas Youth Council
under conservatorship, leading to the closing of ineffective detention facilities and the transfer of juvenile justice funds
back to individual counties, where the rehabilitation programs could be tailor to each communitys individual needs.
For more information: http://www.cjny.org/index.php?option=com_content&view=article&id=544:texas-
under-rick-perry-makes-strides-in-juvenile-justice-reform-say-advocates&catid=6:news-and-updates



VIRGINIA
Governor Bob McDonnell
Substance Abuse Prevention in Virginia

Under the leadership of Governor Bob McDonnell, the Governor's Office for Substance Abuse Prevention hosted the
College Campus Safety and Violence Prevention Public Service Announcement Challenge, asking college students in the
Commonwealth to create public service announcements communicating various issues affecting both public and private
Virginia universities.

Additionally, Virginia has hosted its 10
th
annual Check Strikeforce Campaign. The campaign, which includes an increase in
sobriety checkpoints and an increased police patrol presence, has fostered a 32% decrease in alcohol-related traffic
injuries since the programs introduction in 2002. The program is part of the National Highway Traffic Safety
Administrations Regional Campaign and which also includes the District of Columbia, Maryland, Delaware,
Pennsylvania, and West Virginia.

For more information:
http://www.publicsafety.virginia.gov/News/viewRelease.cfm?id=939
http://www.governor.virginia.gov/news/viewRelease.cfm?id=581
http://www.publicsafety.virginia.gov/News/viewRelease.cfm?id=899
PUERTO RICO
Governor Luis Fortuno
Puerto Ricos Public Safety Efforts

Puerto Ricos Comprehensive Effort to Enhance Public Safety
The Government of Puerto Rico is implementing a comprehensive effort to enhance public safety. Puerto Rico is
focusing on the issue through multiple fronts, including community collaborations; training partnerships and
enhancements for the local police force; and ethics education.

New App to increase confidential citizen crime tips - The Governor has launched a new App for iPhone and Android cell
phones to enable citizens to provide confidential crime tips to police. Citizens can send photos, video and GPS
coordinates to police, and can either provide their name or remain anonymous.

Police training and partnerships - The Government of Puerto Rico is implementing new initiatives to ensure officers
have the latest and best training to ensure public safety.
New $20 million investment for police training.
The Police and Criminal Justice College (CUJC), in collaboration with the Civil Rights Commission (CDC),
conducted a full review and update of cadet training curriculum.

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Designed a continuing education program on topics including: Civil Rights; Use of Force; Search and Seizure;
Community Policing; Establishing Leadership and Command Responsibility; Assessment and Risk Management;
Ethics; Imposition of disciplinary and corrective measures.
The Puerto Rico Police has created a Zone of Excellence in the Bayamn police precinct to serve as a
clearinghouse for training best practices and laboratory for new reforms. New policies will be taught there first,
and newly-promoted officers from other regions will rotate through to learn best practices. The goal is for the
Zone to export exemplary practices, values and the highest standards of accountability and professionalism.
To help ensure the Puerto Rico Police has the latest technologies to fight crime, the Government is
implementing the Crime Information Warehouse (CIW). The CIW provides enhanced insight into criminal
activity and facilitates data-driven, inter-agency crime-fighting cooperation.

Community outreach: Strengthening ties with communities and citizen groups.
Last fall, Puerto Rico Police created an Auxiliary Superintendence of Community Relations which is staffed by
over 300 officers dedicated solely to community relations.
The PRP also created a Special Police-Citizen Interaction Committee to serve as a source of input from
community representatives.
For these activities and for the general public, the PRP has made a new Character Counts program a
centerpiece of its community outreach. In March, the Josephson Institutes Police Ethics Center conducted
training sessions for officers, and the programs six pillars of character adorn the sides of new patrol cars and
appear on banners at the police academy.
Neighborhood Security Community Councils similar to Neighborhood Watch, these councils were created to
enable community members to watch for and report unlawful activity in partnership with law enforcement. As
of Aug. 2011, over 5,900 citizens are serving on 331 councils around the Island.
Ramping up the community outreach efforts of the Police Athletic League, which engages communities and
youth to get kids off the street and into sports; and to develop community mentorship efforts. Over 13,422
community members in 188 chapters throughout the Island serve in this effort.
Press
Caribbean Business: Puerto Rico launches app to aid police
By CB Online Staff
Nov. 15, 2011

Have you witnessed a crime? If you are in Puerto Rico there is now an app for that.
The Puerto Rican government on Monday launched a special cell-phone line, BastaYaPR, that will allow citizens to report
tips to the police to help fight crime.
Gov. Luis Fortuo said in a press release that by calling 3432020 people will find it easier, safer and more effective to
provide anonymous tips to authorities to combat crime...
I know that together we can achieve a safer Puerto Rico. When each one of us takes responsibility and contributes to
guaranteeing law and order, all Puerto Rico will feel a change in security, Fortuo emphasized.
The cell-phone campaign follows those launched for regular landlines and using the Web page www.3432020.com via
which police have received more than 47,000 tips.
The information received via 3432020 has been indispensable in being able to identify and arrest criminals, for which
we thank the courage and civic responsibility of the thousands of citizens who are contributing to safeguarding our
public safety, Fortuo said.

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The application for the program will only be available on iPhones and Android cell phones.
The app makes it easy to send photos and video along with GPS coordinates. People can choose to provide their names
or make an anonymous tip. The application was developed with an anti-crime group whose name translates as Enough,
already Puerto Rico.
BastaYaPR is a nonprofit foundation created by the parents of murder victim Andres Romero Rodriguez.




Federal Policy

Emergency Communications and Interoperability
Several Congresses and presidential administrations have worked on a goal of creating an comprehensive system for
emergency communications. There have been a number of plans including a Federal Communications Commission (FCC)
plan to create a public-private partnership (P3) that would use radio frequency spectrum to attract a commercial partner
willing to share network infrastructure with public safety entities.
66


Legislation
S. 28 - Public Safety Spectrum and Wireless Innovation Act of 2011 introduced by Senator John Rockefeller (D-WV).This
legislation would mandate the FCC allocate the D Block to public safety (rather than auctioning it) for the creation of the
national public safety interoperable mobile broadband network; as well as providing the funding necessary to build the
broadband network.

In addition to S. 28, Rep. Peter King (R-NY), current Chairman of the House Homeland Security Hearing Committee,
introduced last year the Broadband for First Responders Act, and the Senate Homeland Security Chairman Sen. Joe
Lieberman (I-CT) and Sen. John McCain (R-AZ) introduced the First Responders Protection Act in the Senate. The 111th
Congress House version garnered 81 bi-partisan cosponsors prior to adjournment in December.

Rep. King and Rep. Thompson introduced H.R. 607 Broadband for First Responder Act of 2011 in the House. H.R. 607
also allocates the D Block to public safety and provides a funding mechanism to create a nationwide public safety
interoperable mobile broadband network.
67


COPS and Byrne JAG Program
The Senate Appropriations Committee approved fiscal year 2012 (FY12) Commerce Justice Science (CJS) spending bill,
29-1. Overall, this legislation is one percent lower than the allocated amount for FY11 CJS bill. Overall funding for law
enforcement was cut seventeen percent. However, funding to the Community Oriented Policing Services (COPS)
Program was funded twenty percent less than it is currently being funded. The COPS Program received $200 million.
68


The Byrne JAG Program received $395 million (after carve-outs) compared to the $431 million received in FY11 and $357
allocated in the House bill. Additionally, the Senate Homeland Security and Governmental Affairs Committee marked up
and passed (12-5) the Department of Homeland Security reauthorization bill on September 21, 2011.
69



66
CRS Report R41842 Funding Emergency Communications: Technology and Policy Considerations, Linda K. Moore, September 2,
2011
67
Adapted from: http://www.sheriffs.org/sites/default/files/tb/legislative/d_block_talking_points.pdf
68
United States. Cong. Senate. Departments of Commerce and Justice, and Science, and Related Agencies Appropriations Bill, 2012.
112th Cong. 1
st
Session, S 1572. Washington: GPO, 2011. Print. http://www.gpo.gov/fdsys/pkg/CRPT-112srpt78/pdf/CRPT-
112srpt78.pdf
69
Ibid.