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Creating Jobs

For A New California


As the state flower, the California poppy represents
all that Meg values about California: prosperity,
renewal, unity. Early settlers saw poppy-covered hills
and believed they had found the Golden State.
It is time to recapture that excitement again.
Across our great state, poppies represent
the promise of A New California.

2 Meg W h i tm a n : C REATING J O B S F O R A NE W C ALIFORNIA


From Meg Whitman

Dear Fellow
Dear Fellow Californian,
Californian,

T
hank you for taking a few At eBay, I grew a startup with 30
moments to learn more about employees and $4.7 million in revenue
my ideas for building A New to a Fortune 500 company with 15,000
California. I appreciate your employees and nearly $8 billion in revenue.
interest in my campaign and I am the only candidate who has created
hope my jobs plan will provide you with the conditions for tens of thousands of small
a better understanding of the type of businesses and individual entrepreneurs
governor I hope to be – one focused to grow a business and thrive. I think
on putting Californians back to work. Sacramento needs a little bit more of a
California faces one of the most business-like attitude. We have to be honest
challenging times in our state’s history. about our problems, offer grown-up solutions
Because of the unfriendly business and put an end to the partisan bickering and
environment, along with some of the hand-wringing that is business as usual.
highest tax rates in the nation, families I am running to reinvigorate California’s
and businesses are being forced to make economic potential. In the following pages,
unthinkable trade-offs, including leaving I have laid out my road map to create
the state they love. But I am optimistic two million new private-sector jobs by
Creating Jobs
Creating Jobs about California’s future. the beginning of 2015.
for
For I am running for governor because If you have ideas on how we can
I believe everything is still possible in move California forward, please contact
A New
A New California
California California. That is why as governor, our campaign. We will listen. We want this
creating jobs will be my top priority. campaign to be special, one that addresses
It is the only way we are going to your concerns and speaks to your hopes
clean up the mess in Sacramento. for what A New California can be.
I have the unique skill set and the Together, we can put California back
detailed plan to get California to work and make our state great again.
going again.

Sincerely,

Meg Whitman
4 Me g W hit m a n : C R EATING JOB S F OR A NE W C ALIFORNIA
Contents 2010

Meg Whitman visits CareFusion, a medical device company, in Palm Springs, April 2010.

California in Crisis Meg’s Jobs PLan Failure follows A New Kind of Leader
him everywhere

6 California in Crisis 10 Jobs Are On The Way 22 An Introduction 30 On the Horizon:
to Jerry Brown A New California
8 Crisis by the Numbers 13 Provide Job-Creating
- Unemployment Tax Cuts 27 Jerry Brown’s 32 About Meg Whitman
- Taxes 16 Streamline and Greatest Hits
25 Join Meg!
- Business Climate Reform Regulations 28 A Lifetime in Politics
- Debt & Future 18 Recruit New Industries 29 A Legacy of Failure
Forecast and Retain Existing
Employers
19 Solve California’s
Water Crisis
20 Meg’s Road Map
to 2 Million New
Private-Sector Jobs
by 2015

ON THE COVER: (Clockwise from top left) Meg Whitman on a tour of Cannon Safe, Inc. in San Bernardino; Meg Whitman visits the Port of Los Angeles;
Meg Whitman speaks to employees of Whittier Fertilizer in Pico Rivera; Farmers harvesting yellow bell peppers outside Gilroy; Meg Whitman on a tour
of Cannon Safe, Inc. in San Bernardino; Factory worker welding; Meg Whitman speaks at San Joaquin Equipment in Modesto; Meg Whitman tours
Graniterock in Redwood City; Meg Whitman tours CareFusion in Palm Springs; Meg Whitman tours Fowler Packing Company in Fresno; Solar panels
and wind turbines during sunrise; Meg Whitman speaks at Harlan Ranch in Clovis.
Meg Whitman is
determined to bring
a new approach to
Sacramento. One that
demands we create
jobs and lower taxes.
One that requires more
efficiency and better
services. And one
that makes a renewed
commitment to
improving our schools.

#
6 CREATING
Meg W h i tmJaOnB:SCFREATING
OR A NE JWO C
BAS LFI FOOR
R ANIA
NE W C ALIFORNIA
California in Crisis
CRISIS

Crisis by the numbers ...


UNEMPLOYMENT
12.4%
California’s unemployment rate.
In May 2010, only Michigan and
Nevada had higher rates.

2.2 million
Number of Californians who were
out of work in the first half of 2010.
More Californians are out of work
than the populations of 15 states.

10.1%
California has lost 10.1% of its
workforce in the past three years.

TAXES

8.25%
California has the highest state sales
tax in the nation compared to the
national median of 5.85%.

48th
The rank of California’s business
tax climate according to the
Tax Foundation.

8th highest
California has the 8th highest
corporate tax rate.

8
CRISIS

but we can build A New California.

BUSINESS CLIMATE
Worst for business
CEO Magazine calls California
absolutely the worst state to
do business in.

39th
Forbes magazine ranks California
39th when it comes to state
business regulations.

46th
The U.S. Chamber of Commerce
finds California has the 46th worst
lawsuit climate in the nation.

DEBT &
FUTURE FORECAST
$20 billion
California has a $20 billion budget
deficit and has the highest rate for
insuring its debt.

143%
The amount the state spends
annually on servicing the debt has
increased by 143% in the past
decade and is forecast to increase
50% by 2015.

Double Digits
UCLA’s Anderson Forecast predicts
that unemployment will remain in
double digits until 2012.
# Meg W hit m a n ’ s P oli c y A g e nd a for A Ne w C ali forni a
Building A Meg Whitman has a

New California
plan to prime California’s
economic pump to start
creating jobs immediately.
Meg’s plan will make
California competitive
again with neighboring
states, raise our standard
of living, grow our tax
base and help put an end
to the perpetual budget
problems in Sacramento.

1
#0 Meg
Meg W hit
W hit m amna’n’s P oli
s P oli c yc y
A gAegnd
e nd
a a for
for A A
NeNe
ww C ali
C ali forni
forni a a
Meg’s Jobs Plan

Create Jobs
Promote Investments for

Provide Job-Creating the Agriculture Industry 


The agriculture industry is
vital to California’s economy.
Tax Cuts The LLC filing fee is nothing
more than a tax on jobs. The
Meg believes that by providing
a tax credit to encourage invest-
state that put “start-up” into the ments in water-conservation
With California facing a $20 bil- national lexicon needs to repeal technology, we can reduce our
lion deficit, we have to be strate- this tax. state’s consumption and benefit
gic and effective in the tax relief all Californians.
we provide. We need targeted tax Eliminate the Factory Tax
California is only one of Eliminate the State Tax
cuts to get the economy moving
three states that on Capital Gains
again and get Californians back
taxes manufac- California is one of a
Did you
to work. Simply put, growing
turing equip- few states in the country
the economy is the only way out
that taxes capital gains
know?
of the mess that’s been created ment without
offering a tax at a higher rate than
by poor budget management
credit or exemp- traditional income. This
in Sacramento. With the fiscal
tion. The factory AK, FL, NV, NH, SD, is double taxation at its
crisis California faces today, the
tax is a major TN, TX, WA and WY worst. California’s tax
state must first see revenues
obstacle to keep- Have No State treatment of capital gains
increase from economic recovery
ing high-paying Capital Gains Taxes is a major impediment
before providing across-the-board
manufacturing to capital formation and
tax cuts. Meg has a realistic
jobs in California. investment in new jobs.
plan: spark job growth now by
We should align California’s tax
quickly enacting targeted tax
Increase the Research and treatment of capital gains with
cuts that are affordable and im-
Development Tax Credit that of other competing states.
mediately impact key sectors of
our economy to create new jobs. Meg will increase the R&D
Once our economy begins to grow tax credit for California busi-
again and spending has been cut, nesses from 15 percent to 20
Meg will provide broad-based in- percent, which conforms to the
come tax relief and take steps to federal level. This is the same
simplify California’s tax system. level of tax credit that many of “Excessive taxation starves
the states we compete with offer
today. This tax cut will promote
our economy of innovation
As governor, MEG will: investment in the technologies and entrepreneurship.
and industries of the future. We need to build the new
Eliminate the Small
California is the innovation
Business Start-Up Tax
capital of the world and our California economy with
Meg will eliminate the $800
tax policies need to be aligned the goal of making it easier
fee that new business start-ups
to support our major economic
are currently required to pay
advantages.
to start a new business and
in California. Entrepreneurs create jobs in our state.” 
should not be penalized for
launching a business venture.  – Meg Whitman
13
Meg’s Jobs Plan
Establish Academic Provide a $10,000 Tax
Enterprise Zones “We cannot continue to Credit for Home Purchases
Meg will take advantage of To encourage homeownership
the academic excellence at our
have one of the worst tax and lessen the economic damage
universities and create economic environments for jobs in of last year’s mortgage crisis,
opportunity zones to encourage America and expect to remain Meg will provide a $10,000 tax
businesses to locate within a the Golden State. My tax cut credit to the buyers of new and
specified zone around these existing homes. This will boost
institutions. Tax incentives of-
plan encourages research and California’s real estate industry
fered within these zones would development, promotes capital and improve the values of exist-
be focused on hiring workers, formation and investment in ing homes.
promoting research and develop- new jobs and provides targeted
ment, increasing access to state Provide a Tax Credit for
funds and loans and encourag-
tax relief to jump-start our Green Tech Job Creation
ing a close collaboration with economy. Long term, we’re California has the ability to
universities. For example, the going to reduce marginal rates lead the nation in the develop-
University of California, San ment of green tech jobs. The
and modernize California’s state has always been an innova-
Diego and the biotech region
of San Diego are closely linked
tax structure once our budget tive leader and it is time to take
and provide leverage points for situation has been stabilized.” advantage of this great economic
significant economic growth and opportunity by investing in job
– Meg Whitman creation. Meg will create incen-
job creation. The same is true
in communities where other tives for employers to create
UC campuses are located. green tech jobs by offsetting part
of the cost of hiring new workers
Accelerate Depreciation through a tax credit. These cred-
of New Business Equipment its will apply only to permanent
Meg will provide a more jobs directly involved in the
favorable depreciation schedule development of alternative en-
to encourage farmers, manu- ergy and other environmentally
facturers and other companies friendly technologies.
to invest in new equipment and
technology that will make them A Final Word
more competitive and better able The only way to solve our
to hire Californians. towering unemployment is to get
the economy moving again. Meg’s
tax plan would be a significant
General Fund economic boost to the state. Meg
is promoting a balanced approach:

Bond Debt cut targeted taxes, clean up the


spending mess in Sacramento and
then use new revenues once the
budget has been stabilized to pro-
vide marginal tax rate reductions
and make California’s tax system

08 simpler and fairer.


20

Meg believes that too much


99 $
53 According debt is irresponsible. We must act
now by making the necessary cuts
19

to Forbes
to government spending. We can’t
$
23 billion magazine,
California’s continue to use gimmicks to patch
billion debt burden is up the structural problems with
the 47th highest the General Fund while billions
in the nation. get added on top of the state’s
debt.
Source: Secretary of State Voter Guide

14 Me g W hit m a n : C R EATING JOB S F OR A NE W C ALIFORNIA


Meg’s Jobs Plan

Fast Facts

600,000
The number of manufacturing jobs California
4 of 6
Of the nation’s metro areas with the
has lost since 2000, which equals 32 percent highest foreclosure rates are in California.
of the state’s industrial base.

48th
The rank of California’s business tax climate.
$500
On average, each California household is
Our key competitors Washington, Nevada paying about $500 this year to service the
and Utah rank in the top 10. state’s debt.
Historical
Debt

$2,000
$1,800
$1,600
$1,400
$1,200
Per Capita Bond

$1,000
$800
$600
$400
$200
$0
1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008
2009

Source: California Treasurer’s Office, Debt Affordability Reports

15
Meg’s Jobs Plan
Streamline
and As governor,
Meg will:
Establish Business
Development Teams
for Permitting
Reform Implement a
Strategic Time-Out on
Increasing jobs will be “Job
#1” of the entire Whitman

Regulations New Regulations


On taking office, Meg will
impose a moratorium on
Administration. A primary
stumbling block for businesses
in California is the state’s
all new state regulations arcane permitting process that
To work in tandem with her hurts the economy and strangles
until a 90-day review of the eco-
targeted tax cut plan, Meg has job growth. California state
nomic impact and relevance of
outlined a series of reforms and government can directly help
existing laws is completed. There
initiatives that will provide create jobs by establishing Busi-
would be exceptions made for
meaningful relief to employ- ness Development Teams from
rules and regulations governing
ers and consumers from costly key permitting agencies to help
public health and safety.
regulation and frivolous litiga- businesses get the permits and
tion. These policy changes will licenses they need, and by creat-
improve the jobs climate in Cali- ing a one-stop, online permit
fornia and send an important application to streamline the
message that the state is once permit process. Furthermore,
again serious about recruiting Meg will coordinate existing
and retaining businesses. At government funding for new
this time, cutting regulatory and technologies and encourage
litigation costs is a more respon- small business competition for
sible way to reboot California’s government contracts for goods
economy than across-the-board and services.
tax cuts. Doing so will have the
same stimulative effect as a big Harmonize
tax cut without blowing a larger Regulatory Authority
hole in the budget and adding Too often, overlapping claims
to the state’s already troubling of jurisdiction by government
level of debt. bodies create disjointed poli-
Require an Economic
cies and regulations that harm
Cost-Benefit Analysis
employers and fail to achieve the
of New Regulations
worthy objectives of the underly-
“While working at eBay, Meg will ensure that new
ing goals. As governor, Meg will
I gained a deeper, more personal state regulations are given a
issue an Executive Order to
thorough economic cost-benefit
understanding of the damaging require agencies, departments,
analysis before they are adopted.
effect that unfounded regulations boards and commissions to re-
Too often when a department
view their jurisdictional author-
and frivolous litigation can have or agency conducts an economic
ity and report overlapping areas.
on small businesses. The economic analysis, it is merely perfunc-
The goal is to eliminate redun-
toll of heavy-handed government is tory without a true assessment
dant functions and programs
of the economic impact. In the
one of the reasons that motivated and expedite compliance.
Whitman Administration, the
me to run for governor. When we relevant regulatory bodies will Modernize Workers’
improve the regulatory environment be required to identify any nega- Compensation Reforms
in California, we will have an tive economic impact. If there California’s landmark 2004
is an economic cost, the Admin- workers’ compensation reforms
immediate positive impact on the
istration will ensure it’s in the initially succeeded in making
jobs climate.” – Meg Whitman our system more competitive
public’s best interest.

$ 13 166
The cost of government California’s workers’

500
The number of jobs that would be created if California’s
regulations for the
average resident in
regulatory environment were to improve from the 39th % compensation costs,
per $100 of payroll, are
worst in America to the 35th. Each additional five-point
California is more still 166 percent higher
THOUSAND than $13,000 a year. THOUSAND improvement would bring another 500,000 jobs.
than the national median.
16 Me g W hit m a n : C R EATING JOB S F OR A NE W C ALIFORNIA
Meg’s Jobs Plan
and fair to employers, but costs economy, while also protecting the 46th worst environment for
are beginning to increase again. our workers and their jobs. lawsuit abuse in the country.
Meg will take steps to ensure The Civil Justice Association of
that our workers’ compensation Improve California’s California, citing a recent study,
costs are kept in check and do Labor Laws and estimated the tort system in
not vastly exceed those of com- Workplace Flexibility California costs almost
peting states in the West, while California’s labor laws are $32 billion annually. Ironically,
also protecting our workers. antiquated and burdensome California is also the state
Give a Fresh
Look California: 46th Worst California: 49th least friendly
to AB 32 Lawsuit Climate in US 1 state for small business 2
Meg is com-
mitted to pro-
moting policies
that ensure Cali-
fornia remains
a leader in clean
technology. She
will preserve our
status as world
leader in alterna- Best Worst Best Worst
tive energy de-
velopment and the fight against to job providers. One glaring with the nation’s best medical
climate change. The next gov- example is the rigid rules that liability laws. Meg will extend
ernor must recognize, however, prohibit businesses from offering the state’s successful $250,000
that things have changed since family-friendly, flexible schedules cap on punitive damages in
AB 32 was enacted in 2006. The to their workers. While most medical liability lawsuits to
state’s unemployment rate has states don’t start counting over- other tort cases involving
nearly tripled since then, growing time until 40 hours have been product liability. She will also
from 4.6 percent to more than worked, employers in California reform anti-jobs litigation, such
12 percent today. Recent studies are required to pay higher wages as the onerous “Sue Your Boss”
have shown that AB 32 will have after more than eight hours have cases, the state’s version of ADA
an impact on California jobs and been worked in a single day. (Americans with Disabilities
that further economic analysis Meg would update California’s Act), which is so often used
is needed to measure the true workplace laws so that workers to extort attorneys’ fees, and
impact of the law’s implementa- could enjoy more flexibility in other similar laws pushed by
tion on our state’s economy. their schedules, such as working California’s labor unions and
To ensure California’s climate four, ten-hour days instead of trial lawyers. Meg will pursue
change law does not become an five, eight-hour days. This will class action reform to set limits
obstacle to job creation, Meg has reduce traffic congestion and free on plaintiff lawyers’ contingency
called for a one-year moratorium up parents to spend more time fees and end a system that only
on specific AB 32 regulations. with their children. It will also benefits the lawyers who file
This additional time will allow allow employers to better manage the lawsuits. Meg also wants
for careful examination of the their workforce to respond to the to end the use of “greenmail”
true costs and benefits of each demands of their customers. – frivolous lawsuits filed by nar-
proposed rule. Meg’s goal is a row interest groups to exploit
smart, thoughtful and balanced End Lawsuit Abuse environmental laws to benefit
approach that keeps California According to the U.S. Cham- their own agenda, not what the
at the forefront of the green ber of Commerce, California has laws intended.

72
$
million
Amount that the city of Los Angeles
spent on litigation-related expenses
in 2008, enough money to pay for the
salaries of 1,271 police officers. 15
There are now more
Californians out of work
than the respective
populations of 15 states. 70
Average number of
hours drivers in Los
Angeles spend stuck
in traffic per year.

Source: 1. United States Chamber of Commerce 2. Small Business and Entrepreneurship Council 2009 Business Survival Index 17
Meg’s Jobs Plan
and business

Recruit New Industries and management. Our


immigration laws
should be reformed
Retain Existing Employers so that our economy can
benefit from the knowl-
edge these students
California is losing jobs to com- Jobs Ombudsman to work with have obtained in our universities
peting states such as Arizona, new and existing employers to instead of being forced to take
Nevada and Texas, not only navigate the various regulatory their skills back to their native
because our regulatory and tax agencies and departments that countries and join businesses
costs are excessively high, but that compete with the United
also because our state officials States. Meg supports increasing
do not do an effective job of sell- the number of H-1B visas award-
ing California’s economic attri- ed each year.
butes to existing and prospective
employers. Northrop Grumman
announced in January that it
is moving its corporate head-
quarters from Los Angeles to
the Washington, D.C. area,
taking hundreds of jobs with it.
Northrop Grumman joins Nis-
san North America, Computer
Sciences Corporation and Hilton
Hotels as marquee employers
that have left California in
recent years.
impact their businesses. This po-
As governor, Meg will: sition will be an advocate for job
providers and with Meg’s other
Head an Economic pro-job reforms will help change
Development Sales Force the state’s culture and reputa-
California suffers from hav- tion of being hostile to business. “I’m tired of losing pioneering
ing a reputation as the most California companies such as
hostile place to do business in Recruit the Best and
America. The state needs to the Brightest with
Northrop Grumman to other
have a dedicated team of eco- More H-1B Visas states. I’ve been a Fortune 500
nomic development profession- Ensuring that California has CEO and I know how to get
als who have the sole mission a highly skilled workforce is es-
of selling the state’s positive sential to recruiting and retain-
businesses to stay here or move to
attributes to new businesses ing businesses in high-growth California. My Administration
and existing ones. This model sectors such as alternative is going to listen to their concerns,
is being used successfully by energy, biotech and information
our major competitors such as technology. There are currently
align our policies to make them
Texas, Arizona and Nevada. It is tens of thousands of elite foreign more competitive and aggressively
time to put a sign up that says students who are here legally recruit their counterparts in other
California is once again open on student visas, studying in
for business. Meg will operate American colleges and universi-
states to bring their good-paying
as the state’s Chief Sales Of- ties to obtain advanced degrees jobs here.”

 
ficer and will also empower a in math, science, economics
 – Meg Whitman

2/3
18
Two-thirds of studio movies are
now made outside of California.
Me g W hit m a n : C R EATING JOB S F OR A NE W C ALIFORNIA
Meg’s Jobs Plan

Solve California’s
Water Crisis system. As a solution to
protecting the Delta’s criti-
cal environments, a new
Turning our back on the state’s conveyance system would help
ongoing water crisis is turning relieve pressure on the Delta
our back on jobs. As a major while safeguarding California’s
global supplier and the most water supply.
agriculturally productive state

95,000
in the nation, California’s agri- Strengthen our
cultural industry is not one we Conservation Efforts
can afford to lose because of lack Meg will call on all
of political foresight. In order to Californians, urban and Economists from the
University of California,
remain a leader in agriculture, rural, residents and indus- Davis forecasted the
we must face the significant try, to conserve one of our existing drought and
water supply issues that are most important resources. water restrictions
currently plaguing our state and She will be a champion could cost our already
for incentives that en- battered state economy
costing us thousands of jobs. up to $2.8 billion and
Meg is committed to addressing courage businesses and 95,000 jobs.
California’s water problems and homeowners to conserve
supports new water storage and water. Meg believes that
delivery projects. new technologies and con-
servation strategies are vital to
becoming sustainable and that it
As governor, Meg will: is important that we continue to
view conservation as part of the
Support the “Two Gates” overall solution.
Project
Meg supports building an Promote the Use
intermediate solution to increas- of Technology
ing our state’s water supply. Meg believes that technolo-
The “Two Gates” project pres- gies such as desalination and
ents a viable solution that water recycling must not be
would protect the Delta smelt overlooked as promising solu-
while increasing water flow. tions to our water crisis. As
governor, she will work to reduce
Support the Construction the regulatory barriers that
of Above and Below-Ground are preventing California from
Water Storage attracting companies that will
Meg believes that California help build the technology we
needs to make investments in need to sustain a reliable
infrastructure to ensure that we water supply.
have adequate reserves of water
to address future droughts and
shortages.

Secure California’s Water


Supply by Constructing an
Alternative Conveyance
System
In order to maintain a reli-
able source of safe drinking
water, Meg believes it is vital
9 out 9 of the top 10 agriculture-producing
to update our water delivery of 10 counties in the nation are in California.

19
Meg’s Jobs Plan

Meg’s Road Map to 2 Million N


New Jobs
Created By
Industry*
Agriculture
Construction
47,000
All Other 1 94,000
536,000 Manufacturing
208,000

Retail

Leisure &
375,000
Hospitality
192,000

Information
Education 65,000
42,000
“My team and I
have dissected the Financial Services
Health Care
California economy, 181,000 Business Services 91,000
identified the growth 250,000
opportunities and constructed a policy
agenda that will put us on a pathway
to the creation of two million jobs by
the beginning of 2015.”
– Meg Whitman

*IMPORTANT

NOTE ON ESTIMATES: The Road Map outlines estimates in growth in employment by industry as an outcome of a full implementation of Meg’s job plan. This
is a target estimate only. The figures provided on this page are the result of a detailed economic and policy analysis but are intended only as initial estimates. No expert
or group of experts can accurately predict or guarantee the future, and the exact state and federal policy environment California will face over the next four to five years, as
well as the condition of the global economy, is always uncertain. These estimates are a goal that the Whitman Administration will aggressively pursue. Actual sector-by-
sector numbers may evolve over time as conditions change. A strong overall net growth in California jobs will be the Whitman administration’s top priority.

Regulatory Reform
Implement Strategic Time-Out New Regulations
Perform Cost Analysis of New Regulations
Harmonize Regulatory Authority
Modernize Workers’ Comp Reforms
Review AB 32
Improve Workplace Flexibility
End Lawsuit Abuse
Provide One-Stop Business Licensing
Agriculture

Construction

Manufacturing

Retail

Information

Financial
Services

Business
Services

Health Care

Education

Leisure &
Hospitality

All Other*

1 “All Other” includes: Transportation, wholesale


# trade, utilities,
Me gmining
W hit
andm a nindustries
other ’ s P oli c y A g e nd a for A Ne w C ali forni a
Meg’s Jobs Plan

New Private-Sector Jobs by 2015

Meg’s jobs plan is designed to return our state to full employment. This is an
ambitious goal, but it can be accomplished if California reforms its tax, regulatory
and statutory policies with an eye toward fostering innovation and entrepreneurship.
Washington, D.C. must also play a role by supporting fiscal policies that lead to the
creation of new jobs.
To put Meg’s jobs goal in perspective, there are approximately 1.3 million
small businesses in California. If each one of them created just one new job,
Meg would be two-thirds of the way to her goal.
Unlike others in politics who simply make promises, Meg Whitman has
a detailed strategy to create good new jobs. Meg and her team have analyzed
California’s economy and have created a sector-by-sector strategy for job creation.

Target Increase In Industry Employment


18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%
Agriculture Construction Manufac- Retail Information Financial Business Health Care Education Leisure & All Other*
turing Services Services Hospitality

Effectiveness of Key Policy Components


Tax Relief
Promote Investments for the Agriculture Industry
Eliminate Factory Tax
Increase R&D Tax Credit
Eliminate Start-Up Tax
Eliminate the State Tax on Capital Gains
Establish Academic Enterprise Zones
Accelerate Depreciation of New Equipment
Provide Homebuyers’ Tax Credit
Establish Green Job Creation Tax Credits
Agriculture

Construction

Manufacturing

Retail

Information

Financial
Services

Business
Services

Health Care

Education

Leisure &
Hospitality

All Other*

High Impact Low Impact


Jerry Brown: A Legacy of failure

“Politics started
the day I
was born.”
– Jerry Brown

1938 1959-1967 1964-1965 1967 1968 1971-1975 1975-1983

Brown is born Father Pat Brown California Supreme Court Founded California Peace Elected to Los Angeles California 34th Governor
in San Francisco served as 32nd Law Clerk Slate and Treasurer for Junior College Board Secretary of State of California
Governor of California Eugene McCarthy campaign

22
jerry A Lifetime in Politics
brown A Legacy of Failure

Jerry Brown was born into a political dynasty and has spent a lifetime in the
family business running for office.

As Governor, Mayor of Oakland and now Attorney General, Brown has waged a
war on jobs, driven by his liberal philosophy of more regulations, more taxes
and more spending. After his 8 years as governor, he left the state with record
unemployment and 1.3 million Californians out of work. His record is one of a job
killer who for 40 years has failed to keep his promises.

Voters deserve better than Brown’s non-answers to serious questions about how
he would fix our state’s pressing economic problems.

Jerry Brown won’t tell Californians what he plans to do if


given a third term. Asked recently how he would fix the
state’s budget, Brown said, “It's very difficult but I have a
plan. I'll tell you after the election.” In fact, Governor Brown
never had a plan during his first turn at the job, from 1975-
1983. After leaving office, Brown said he campaigned on
“a lie.... I didn’t have a plan for California.”

1976 1980 1982 1989-1991 1991 1992 1999-2007 2007-Present

Failed run for Second failed run Failed run for California Democratic Second failed Third failed run Mayor of Oakland California
U.S. Presidency for U.S. Presidency U.S. Senate Party Chair run for U.S. Senate for U.S. Presidency Attorney General

23
Jerry Brown: A Legacy of failure

Jerry Brown:
He granted vast new powers for public employees to
unionize. That move has led to the lavish state worker
retirement system that today has left California taxpayers
HAD NO PLAN FOR CREATING on the hook for at least a $100 billion unfunded liability.
PRIVATE-SECTOR JOBS
Pursued Anti-Business agenda
Jerry Brown served as governor from 1975 until 1983,
When Jerry Brown became governor in 1975, he brought in
an era marked in large part by economic uncertainty and
environmental, consumer-protection and social activists.
rudderless political leadership. Brown told a national
Within months, the Brown appointees were issuing new
television audience in 1995, campaign promises are “a
regulations widely decried by business and professional
lie. ... You run for office and the assumption is, oh, I know
interests as job killers. Dun & Bradstreet ranked
what to do. You don’t. I didn’t have a plan for California.” In
his second term, the number of unemployed Californians
increased by more than 600,000. Under Brown, the jobless rate nearly
JOBLESS RATE NEARLY DOUBLED
DOUBLED from 6.5% to 11.1%
In Brown’s second term, the jobless rate soared from 11.1%
6.5 percent to 11.1 percent, a record high. But he did
grow state government jobs – by 20,000 over his eight-
6.5%
year term.

Promised “era of limits”,


but grew gov’t 120%
Brown was elected governor on a platform of no new taxes
and espoused the mantra of reduced expectations for an
“era of limits”. Brown’s only idea of limits, however, was California second to the bottom when considering where
to discourage business growth and kill job creation. He to locate a plant, citing excessive regulation and a
grew state government spending by 120 percent, raised or strong union presence.
endorsed $7 billion in new taxes and expanded business
regulations. In his second term in office, Brown signed a bill RAISED TAXES ON EMPLOYERS
hiking the state gas tax by two cents, a $2.7 billion increase, The California Chamber of Commerce’s president said,
and it included a provision allowing local governments to “Under our so called no-new-taxes Brown administration
raise the gas tax even higher. He also doubled the vehicle we’ve been paying $800 million more in taxes. It’s clear
registration fee. He proposed a $5 billion sales tax increase. California’s elected leaders and their appointees have
And with a deficit looming, Brown’s final budget called for never taken a course in economics.” Brown sought to
$1.5 billion in accelerated tax collections and new fees on abolish the two-thirds requirement to alter business taxes,
utilities, farmers and college students. supported the unitary tax on multinational businesses,
raised the unemployment insurance tax,
and backed other taxes that discouraged
Jerry Brown called for Jerry Brown EVEN companies from expanding to California.
$7 billion worth of tax hikes. doubled the vehicle
He wanted to tax: registration fee. PUT UP BARRIERS TO
JOB GROWTH
According to one analysis, Brown’s
Farmers “record of hostility to the state’s
economy” included an almost doubling
Utilities
of state spending in his first two years
students compared with Ronald Reagan’s last four
years, a nearly complete halt to highway

24
Jerry Brown: A Legacy of failure
construction, a public utilities commission that limits new Brown Called “Worst Administrator
business to piddling allotments of natural gas, and a tax Ever To Come Down The Pike”
and environmental-control system that has discouraged As governor, Brown showed virtually no skill or desire to
Dow Chemical, Alcan Aluminum, Anchor Hocking Corp. and work with the legislature, prominent Democrats and even
many other companies from building facilities here. his own staff. Democratic Assemblyman Louis Papan simply
called him “the worst administrator ever to come down the
TURNED AWAY MAJOR EMPLOYERS
pike.” Democratic Assembly Leader Leo McCarthy bluntly
Dow Chemical gave up on a plant that would have
said Brown “isn’t willing to work at the job of being a unifying
used clean technology and created 1,000 jobs. In
leader.”
two and half years, the company spent nearly $5 million and
only obtained four of 65 necessary permits. By almost everyone’s account, Brown was a notoriously
poor manager, often unfocused and almost always without
a plan. Brown simply called it “creative inaction,” and once
During his time as Governor, said, “Sometimes it’s better to do nothing.” The result was
Jerry Brown turned a a nearly dysfunctional governor’s office. Sadly, Californians
paid the price.
into a While Brown happily named a state astronaut and
$6
$1 the publisher of the Whole Earth Catalog as a special
billion consultant, two years into his administration nearly one of
billion
surplus five board and commission appointments remained vacant.
deficit He also was widely faulted for letting highways decay and
ignoring public education. “He let state legislators or his
own appointees deal with those, and he wasn’t around
even to correct their more grievous errors,” The Sacramento
Jerry Brown met with the top executives of Honda. Why Bee concluded. During one stint in 1979, busy running
should Honda consider California for its first American plant? for president, Brown spent 79 out of 100 days outside of
“Hippies”, Brown replied. “Blue jeans. All important trends California.
start in California.” Honda went elsewhere.
LED CALIFORNIA TO DEFICIT SPENDING,
CAMPAIGNED AGAINST PROP. 13, CALLING IT BUSINESS UNCERTAINTY
“A RIPOFF” When Brown left office in January 1983, more than
While Brown dawdled, California taxpayers in the 1970s 1.3 million Californians were out of work, nearly double
were being pushed into higher income tax brackets because the number four years earlier at the start of his second
of inflationary pressures. Escalating property taxes, with term. He’d turned a $6 billion surplus into a $1 billion
no caps, were threatening to drive people from their deficit. The Sacramento Bee reported that California was
homes. Brown did nothing to fix the inequities. Angered, “flat broke and on the brink of bankruptcy.” California’s
voters overwhelmingly passed Proposition 13 in 1978. government was on the verge of issuing IOUs for the first
While Brown had tried to urge its defeat, calling it a “ripoff” time since the Great Depression and unemployment was
and “consumer fraud,” the voters simply ignored him. a record-high 11.1 percent, only surpassed during this
current recession.
COST JOBS BY FAILING TO ACT IN CRISES
Brown was roundly criticized for not taking practical steps In a 1995 speech, Brown said, “Remember, in 1982, we
to address the state’s debilitating drought between 1975 had the first deficit left in California. I had seven balanced
and 1977.   He failed to act when a pest, known as the budgets. Usually they had balanced budgets before that.
Mediterranean fruit fly, severely threatened the state’s I left an unbalanced budget in 1982 and guess what,
agriculture industry. Brown cost California agriculture they’ve had a debt ever since.”
$100 million.

25
Jerry Brown: A Legacy of failure

Jerry Brown was elected


Attorney General in 2006.
One of his first acts was to
spend $230,000 redecorating
the Oakland Attorney General’s
office. He’s fancied himself an
environmental justice crusader,
cajoling entire industries and
local governments to adopt
environmental measures –
even if it cost jobs and local
governments large sums
to comply.

Employers have been packing up


and leaving California in large
part because of the hefty cost and
uncertainty of doing business in
a state with excessive regulation
and litigation. As the California
economy continues to sputter,
it’s troubling when the state’s
top lawyer says, “I’ve got 1,100 Jerry Brown spent $230,000
lawyers standing by and they’re redecorating the Oakland Attorney General’s office.
looking for someone to sue.”

Brown: “I don’t do too much these Brown uses climate change


days except sue people” for political gain
Brown won the Attorney General’s job without much of Brown decided to hang his political star on the environment.
a plan beyond the political potential of holding press Ignoring legal precedent for politics, Brown has pursued his
conferences to cast himself as a populist crusader against agenda with aggressive lawsuits and threats of litigation.
business and burnish his law-and-order and environmental According to a blog posting, aptly titled “Jerry Brown
credentials. Barely a year on the job, he said, “I don’t do Climbs on Climate Change Bandwagon,” Brown laid out
too much these days except sue people.” his strategy at an environmental confab in Sacramento:
“My office is looking, and we’re going to send you a
comment. And you should look at it or we’re going to
Bill Clinton on Jerry Brown sue you.” Laughing, he told the enviro crowd: “Every
time you applaud, that’s one more lawsuit I will file.”
“He had a surplus when he took office
and a deficit when he left. He doesn’t Brown turns environmental
tell the people the truth.” quality act into “a club”
When legislators passed the California Environmental
“You know, he reinvents
Quality Act decades ago, nobody talked about climate
himself every year or two.” change. But because the law was written so broadly,
“it provides Brown with a powerful club to force every
“Jerry does not know
municipality in the state to tackle global warming in
what he’s talking about.” one form or another—through traffic planning, road
construction, housing, and industry regulation,” wrote one

26
Jerry Brown: A Legacy of failure

land-use expert. The San Diego Union-Tribune editorial


page said Brown was on an environmental “rampage.”
Jerry
Brown sues, threatens housing
and road projects
Brown made San Bernardino County, with a Republican
Brown’s
Greatest
Board of Supervisors, his test case. He told them to build
higher density communities, limit parking and extract
methane from landfills. So development wouldn’t stop
cold, just as housing construction was beginning to stall
and the recession took hold, the county settled. It was left
with a $500,000 bill.
Hits
Brown targets local cities and counties
In the wake of the San Bernardino suit, Brown issued “I left an unbalanced budget in 1982 and
more than three dozen comment letters to cities and guess what, they’ve had a debt ever since.”
counties across the state, not-so-subtle reminders they (Jerry Brown Speech In Santa Rosa, 4/14/95)
too could face litigation. In his eight years as Attorney
General, Brown’s predecessor, Bill Lockyer, wrote only two “We need more welfare and fewer jobs.”
such comment letters. (Jerry Brown, “Op Ed: Jerry Brown Speaks Out On
Welfare Reform,” North Coast XPress, 3/95)
“You have the attorney general come in and threaten
lawsuits,” said Bill Higgins, legislative representative for
the League of California Cities. “We don’t know what “They didn’t call me [Governor] Moonbeam
the law really is.” Brown, he added, was “leveraging that for nothing. I worked hard to get that.”
(Jerry Brown Speech,
uncertainty to reach policy outcomes that are usually California Democratic Party Convention, 3/29/08)
beyond the attorney general’s control.” 
“I’m wary of fundamental changes. Have
Brown targets entire industries you ever tried to fundamentally change
Brown led the effort to try to convince the federal yourself? I have. It doesn’t work very well.”
Environmental Protection Agency to increase regulations (Jerry Brown Press Conference,
on airlines and shipping companies. He sought to regulate California Democratic Party Convention, 4/16/10)
fuel efficiency of airplanes and marine vessels, suggesting
the latter should travel at lower speeds. “When I was governor, I’m sorry to
acknowledge, wages toward the end
Jerry Brown: started to fall. Factory jobs started moving
failure follows him everywhere abroad, and the numbers of the poor
In 40 years in politics, he’s failed to control government began to grow.”
(Jerry Brown Speech,
spending, he’s failed to keep taxes reasonable, he’s failed 1992 Democratic National Convention, 7/15/92)
to sustain job creation. In short, he’s failed to deliver on
his promises.
“Technology ... it’s costing jobs.”
Adding it all up, Brown has run for office 14 times and has (“Resolved: Do We Have Too Much Government Regulation,”
spent half of his adult life in elected office. Since 1943, Firing Line With William F. Buckley, Jr., 10/2/95)

California has had three Democratic governors: Jerry’s father,


Jerry, and Jerry’s former chief of staff, Gray Davis. “I don’t do too much these days except
sue people.”
His lifetime in politics is a legacy of failure. Californians (Jerry Brown Speech,
cannot afford to give Jerry Brown a third term. California Democratic Party Convention, 3/29/08)

27
Jerry Brown: A Legacy of failure

A Lifetime in Politics
1938 Brown is born in San Francisco

1959-1967 Father Pat Brown served as 32nd


Governor of California
1964-1965 California Supreme Court Law Clerk

1967 Founded California Peace Slate and


Treasurer for Eugene McCarthy campaign
1968 Elected to Los Angeles Junior
College Board
1971-1975 California Secretary of State

1975-1983 34th Governor of California

1976 Failed run for U.S. Presidency

1980 Second failed run for U.S. Presidency

1982 Failed run for U.S. Senate

1989-1991 California Democratic Party Chair

1991 Second failed run for U.S. Senate

1992 Third failed run for U.S. Presidency

1999-2007 Mayor of Oakland

2007-Present California Attorney General

Jerry Brown: Failure fol


28
Jerry Brown: A Legacy of failure

A Legacy of Failure
did you know?
Governor Brown grew state government
120%
Governor Brown left the
state with record high
11.1% unemployment
Governor Brown raised or endorsed

$7 Billion
in new taxes

In1989 Jerry Brown worked


to ship jobs overseas to China
When Mayor Brown left office,
Oakland was named the
4th most
dangerous city in the U.S.
Mayor Brown raised
Oakland property taxes

$500 million
Mayor Brown left Oakland with a

$13 million
deficit and high debt burden

llows him everywhere


29
#0
3 Meg
Me g WW hit
hit mmaa
nn: :C C
RR EATINGJOB
EATING J OB
S SF OR
F ORA ANE
NEWWC C ALIFORNIA
ALIFORNIA
On The Horizon:
A New California
The contrast could not be clearer. A proven job creator versus
a lifetime professional politician. California cannot afford to go back to a legacy
of failure. We need a new kind of leader.

Meg Whitman is running for governor to help write the next chapter in our state’s
great history. She does not accept the fate the doomsayers want to lay at our
doorstep. Meg understands the magnitude of the changes that are required to
rebuild California. None of this will be easy, but nothing important and worth doing
ever is.

The special interests who are vested in the failed status quo in Sacramento are
not going to like Meg’s policy agenda. They are going to campaign hard against her
reform ideas, but Meg isn’t running to make them happy. She is in this race to fix a
state teetering on the edge of financial collapse. She is in this race to grow jobs and
raise the standard of living in our state. She is in this race to fix our failing schools
and to foster the next technological revolution in the fields of alternative energy,
biotech and advanced manufacturing. This is an important campaign for California’s
future. It’s a campaign grounded in principle and big ideas. Let the debate begin.

31
MEG WHITMAN

A New Kind of Leader


for A New California with her parents: Meg’s mother Griff and Will, were born.
Meg Whitman fell in
was an intrepid spirit who vol- Meg’s career led her to key
love with California unteered in World War II to over- executive positions at some of
haul jeep and airplane engines.
as a young girl. She taught Meg to face challeng-
America’s best-known compa-
nies, including Disney, Stride
es head-on and instilled in her Rite, FTD and Hasbro. Each
the philosophy that the price of career stop helped prepare her
inaction is far greater than the for the unprecedented opportu-
cost of making a mistake. Meg’s nity that Meg encountered in
father, a World War II veteran, the fall of 1997, when she met
taught her that hard, behind- the founder of a tiny start-up
the-scenes work is important for called eBay. Meg had honed
success in life. Together, Meg’s
parents instilled in Meg the
importance of integrity, convic-
tion and perseverance.
Meg attended public school
from kindergarten through the
12th grade. As a strong student
and a versatile athlete, Meg
had the opportunity to attend
Princeton University, where
she received a degree in eco-
nomics, and Harvard Business
School, where she received her
MBA. Her first professional
job was as a brand assistant
at Procter & Gamble in
Although Meg was born and Cincinnati. But Meg soon
raised on Long Island, New found herself happily headed
York, her passion for California to California again, this time as
had early roots. In 1962, Meg’s a young bride with her husband, a style of leadership that
adventurous mother, Margaret, Griff Harsh, who had accepted a emphasized listening and
packed six-year-old Meg and her medical residency at the Univer- teamwork. She was a seasoned
brother and sister into a Ford sity of California, San Francisco. manager of large, complex orga-
Econoline van and they spent Meg joined the consulting firm nizations. Meg immediately saw
three months car-camping Bain & Co.’s San Francisco of- in eBay the makings of a great
throughout the West. Meg’s fice, where she would work for company. eBay had married the
fondest memories: the majesty the next eight years, eventually Internet’s communication and
of Yosemite’s towering cliffs becoming a vice president. At networking capabilities to cre-
and the thrill of Disneyland’s Bain, Meg developed her keen ate a novel and efficient trading
spinning teacups. “California ability to analyze challenges market. It also had something
seemed larger than life, a place and solve problems by “focusing very rare – an exuberant com-
where anything was possible,” intensely on the small number munity of users who loved eBay
Meg recalls. of changes that can make the and who pulled together to make
largest possible difference.” it work and grow.
Indeed, Meg was taught from Also during this time in San
the start that if she could dream At eBay, Meg made history.
Francisco, Meg and Griff decided Meg steered the company
it, she could do it. It began to start their family and sons, through the dot-com rise and

32 Me g W hit m a n : C R EATING JOB S F OR A NE W C ALIFORNIA


MEG WHITMAN
fall that the declining
saw the performance
vast ma- of Califor-
jority of nia’s schools
high-flying were deeply
start-ups troubling to
crash and Meg, and
burn, she thought
while eBay carefully
turned about how she
in one could lend her
quarter of experiences to
dramatic help. In Febru-
growth af- ary 2009, she
ter anoth- announced her
er. When candidacy to
she joined eBay, the company tivate thousands of small busi- become California’s next gover-
had just $4.7 million in revenues nesses, Meg developed strong nor. “We’ve got to focus – we’ve
and 30 employees; when she re- ideas about the ingredients for got to create jobs, cut spending,
tired in March of 2008, 10 years 21st-century success at every and invest in fixing our educa-
later, the company had nearly scale, from small business to tional system,” Meg says.
$8 billion in revenues and 15,000 the corporate level, from local to Meg has committed her en-
employees worldwide – with state to national government. It ergy, her trademark optimism
millions of users in California was as CEO of eBay where Meg and her belief in fiscal restraint
alone. During that journey, Meg experienced the influence and to the challenge of rebuilding
appeared on many “top CEO” power of government in people’s California. She has done so with
lists and national magazine cov- everyday lives and its ability to the full support of her family,
ers. Time ranked her among the help or hinder businesses and which is her greatest source of
world’s most influential people. consumers at every level. And pride. Meg and her husband,
Fortune ranked her as the most it was at this time when she saw Griff, now a doctor at Stanford
powerful woman in business in a critical need for more focused Hospital, have been married for
2004 and 2005. And BusinessWeek problem solving in government 30 years. Meg and her family are
listed her among business’s top by those with the tools to lead ardent outdoor enthusiasts who
managers year after year. and the willingness and indepen- love hiking, skiing, fly-fishing
Meg’s widely regarded leader- dence to challenge the status and enjoying all of California’s
ship and organizational skills quo. Her decade at the helm natural treasures. “If we let Cali-
attracted attention beyond busi- of eBay came to a close just as fornia fail, we all fail,” she says.
ness. As the leader of a global California’s growing economic “And we love California too much
company that created a huge crisis was unfolding. Job losses, to let it fail. We have to work
number of jobs and helped cul- undisciplined spending and together to make it the place of
our dreams again.”
“I have a unique skill set that fits the dire times of our state. I have been blessed to
have worked in some of the very best businesses in the world. I have created jobs.
I understand how to manage change. I have been tested under fire, time and again.
I know how to negotiate, build consensus, develop a strategic vision and maintain
the focus and commitment to see it through. I want to build A New California, a
state that will reward hard work and entrepreneurship, a state that has the best
schools in the nation, the smartest government, and above all else, the highest quality
of life in the world. My vision for A New California is ambitious, but with your help
I know we can do the job. I would be honored to have your support and vote to be
the next governor of our great state.”

34
Join Meg!
MegWhitman.com

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T e x t “ N E W C A ” to 4 6 6 3 4 ( G O M E G )
Meg Whitman
20813 Stevens Creek Blvd., Suite 150
Cupertino, CA 95014

www . M e g W h i tman . c o M
T e x t “ N E W C A ” to 4 6 6 3 4 ( G O M E G )

Paid for by Meg Whitman for Governor 2010

20813 Stevens Creek Blvd., Suite 150, Cupertino, CA 95014

P r i nt e d i n C a l i f o r n i a o n R e c y c le d Pap e r

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