The State Government Leadership Foundation is committed to educating decision makers on how economic prosperity is best achieved and fostered. The State Government Leadership Foundation is committed to supporting policies that provide for less and more efficient government, which ultimately allows for the competitive environment and outstanding entrepreneurship that keeps the American economy strong, state by state.
The SGLF further believes that economic prosperity goes hand and hand with lowering the tax burden, while simultaneously lowering government spending. We believe this decreased tax burden will not only help America’s families, but will also help in America’s road to economic recovery. The SGLF also supports lower government spending at the state level. We support policies that aim to hold governments responsible for their spending habits.
Free market principles work best in our economy and help foster the entrepreneurial spirit that America is known for. By eliminating harmful and burdensome government red tape and by decreasing taxes and limiting spending, American businesses will be able to flourish.
Although technically out of a recession, the United States is still experiencing a terrible economic downturn. National unemployment continues to hover around 7% and states across the country are seeing companies and jobs flee to other locations, leaving behind a trail of economically depressed cities and unemployed residents.
State leaders need to look for ways to incentivize businesses to open or relocate in their state. States that best do this have decreased government regulations, lower business taxes, tax incentives, and other economic development programs designed to stimulate growth.
Taxes, Spending, & Budgeting
The ballooning cost of government has been forcing legislators to consider tax increases in order to balance their budgets. The SGLF supports making government leaner and more efficient in order to avoid tax and fee increases. Families have had to make difficult decisions on how to save money in this economic downturn, and governments need to do the same. Belt tightening is also good for future fiscal policy, and helps states be proactive rather than reactive.
Spending too much is not an excuse for raising taxes. In order to stay true to prudent fiscal policy, states must reign in government spending instead of asking citizens to continue dishing out more of their hard-earned money, especially during these difficult economic times.
Rainy Day Funds, much like savings accounts, are also wise financial reserves to have in case of emergencies.
As was the case in many states once federal stimulus money was handed out, recurring expenses should not be funded with one-time revenue sources. Once that money dries up, the recurring expense is still present, and creates an even bigger issue on how to fund it in the future.
Identifying cost saving in all areas of the budget will serve as a responsible budget strategy as well as not allowing any area of the budget to remain immune from cuts, especially in these economic conditions.
Studies show that overall Americans are wary of government regulation on businesses. A Pew Research Center study conducted in 2009 asked whether or not surveyors thought regulation of business usually does more harm than good, and a majority of respondents agreed that regulation normally does more harm than good. Although their opinions may vary after drastic current events such as the recent financial crisis, in general Americans are wary about the effects of government regulations.
News & Articles
Oklahoma Senate approves conditional tax cut
A proposed change would cut the state’s income tax rate from 5.25 percent to 5 percent when Oklahoma’s general revenue reaches a certain point.
The Oklahoma state Senate on Thursday approved a conditional state income tax cut. “I am pleased to present to you today legislation which honors the commitment that we made last year to reduce taxes for the hard-working taxpayers of Oklahoma,” said state Sen. Mike Mazzei, R-Tulsa, who presented Senate Bill 1246 on the Senate floor. The bill would cut Oklahoma’s top income tax rate from 5.25 percent to 5 percent once certified projections for the state’s general revenue fund get back to where they were when the Legislature approved a tax cut last year. The earlier tax cut bill was struck down by the Oklahoma Supreme Court because it covered more than one topic.
The earliest the Senate’s new proposed tax cut could take place is the 2016 tax year. The bill contains a conditional provision for a subsequent cut in the top income tax rate to 4.85 percent as soon as the state’s revenue growth is enough to offset the amount that would otherwise be lost because of the additional tax cut. Mazzei told Senate members that about 70 percent of Oklahoma taxpayers would receive some reduction in their income taxes if the Senate bill becomes law.
In plot twist, California needs tax breaks to lure film crews
It’s a tale almost good enough for the big screen. Tired of seeing other states pony up big cash to attract television shows, movies and jobs, California is looking to boost its own tax breaks for entertainment projects. Democratic state Assemblyman Raul Bocanegra plans to introduce legislation in February to increase California’s $100 million-a-year budget for film and TV tax incentives and expand the type of productions able to claim tax credits to big-budget films and network shows, which are now excluded. It may seem ironic that the home of Hollywood needs to persuade studios to shoot in the state, but budget-tightening in the past decade has led to a system where nearly all location decisions are based on how much cash states dangle before production companies. And with nearly 40 states offering financial incentives, competition is fierce.
Economists: Local, state economies continue recovery, but budget woes could loom
The Boulder region and Colorado are doing "pretty darn well," from an economic standpoint, but some concern should be placed on the ongoing health of the state budget, two of Colorado's leading economists said Thursday. The year-over-year gains in Colorado's general fund mask a lurking problem: that a combination of factors could very well create a significant state funding gap in the future, said Richard Wobbekind, economist at the University of Colorado, and Phyllis Resnick, president of the Colorado Futures Center at Colorado State University. Wobbekind and Resnick were joined by Josie Heath, president of the nonprofit Community Foundation Serving Boulder County, and William Farland, former chairman of nonprofit lab and science consortium CO-LABS, to share their insights about the local, state and national economy at the Boulder Economic Council's "2014 Economic Forecast: Boulder & Beyond." Resnick, speaking on a panel that preceded Wobbekind's keynote address, said Colorado's current revenue gains are "temporary phenomena." The state's budget in recent years has been propped up by one-time infusions such as federal stimulus dollars and housing credits that fueled growth in real estate and equity markets, she said.
Boeing to shift research jobs to Missouri, Alabama, S. Carolina
JEFFERSON CITY, Mo. (AP) — Boeing announced Thursday that it is
shifting hundreds of jobs to Alabama, Missouri and South Carolina as part of a
restructuring of its U.S. research operations over the next two years. The Chicago-based aerospace company said the reorganization will result
in fewer research jobs in Washington state and California and is being
undertaken to better meet the needs of its commercial airplane, military and
space and security units. The announcement comes as those same states, and several others, are
competing to assemble Boeing's 777X passenger plane — a much-sought-after
facility that could generate thousands of jobs. Boeing spokesman Daryl Stephenson said the restructuring of the
company's research operations has been in the works for several years and is
unrelated to the new airplane or Boeing's contract negotiations with a Seattle
area machinists union.
The research restructuring will add 300-400 employees each in the St.
Louis area, Huntsville, Ala., and North Charleston, S.C. Research jobs will
decline by 800-1,200 in the Seattle area and by 200-300 in southern California,
the company said. The restructuring is to start early next year and be complete by 2015. After the changes, Boeing will still have about 4,000 employees in its
research and technology operations, but they will no longer be concentrated
predominantly on the West Coast. The Seattle and St. Louis sites will have the
most employees, and each site will have specific research tasks. The Alabama site is to focus on simulation and decision analytics and
metals and chemical technology. The southern California location is to focus on
flight sciences, electronics and networked systems. The St. Louis site is to
conduct research on systems technology, digital aviation and support
technology, and metallic and fabrication development.
Iowa business interests push tax changes
DES MOINES | Iowa’s big-city business leaders Wednesday called for a
simpler, flatter income tax and a higher gas tax to help fix roads and bridges. Leaders of the Iowa Chamber Alliance, representing business interests
in the state’s 16 largest urban areas, say Iowa’s complicated income tax system
for individuals and corporations is hard to explain to businesses looking to
locate in the state. Deteriorating infrastructure also hurts business recruitment efforts,
the said in outlining their priorities for the 2014 legislative session. “Iowa’s road system requires immediate attention,” said Kelly Halstead,
economic development director for the Greater Fort Dodge Growth Alliance. She
said her nonpartisan group supports new or alternative sources of revenue,
including a fuel tax increase.
Alliance leaders also said they support efforts to simplify and reduce
income taxes, allowing businesses and individuals to choose to file under the
current system or to use a filing alternative that would be simpler, with lower
rates and fewer deductions. Steve Firman, director of government relations for the Greater Cedar
Valley Alliance and Chamber in Waterloo-Cedar Falls, said Iowa ranked 40th
among states in the Tax Foundation’s 2014 tax climate comparisons because it’s
difficult to explain the complexity of federal deductibility that skews Iowa’s
true rates. “In economic development, if you’re explaining, you’re losing,” Firman
A tax cut in North Carolina, but first, new paperwork
Written by David Ranii and Virginia Bridges for The Charlotte Observer on December 08, 2013Economic Prosperity
The most significant overhaul of North Carolina tax law in a generation
takes effect in a few weeks, ushering in sweeping changes that include more
take-home pay and a broader sales tax that includes movie and concert tickets. But first comes the paperwork. Most taxpayers are being asked to complete a new form this month, a
direct consequence of the new income tax system. It’s a complication – some
would say hassle – for employees and employers alike that is drawing complaints
even from some who cheered when GOP lawmakers pushed through a new tax bill and
Gov. Pat McCrory signed it into law in July.
The new law lowers individual income tax rates to a flat 5.8 percent in
2014 and eliminates dozens of deductions from state returns. The change means
employees must fill out a revised form – the equivalent of the federal W-4 –
that will determine how much state income tax is withheld by their employer.
Those who receive pensions and annuities must also complete the new forms. George Ports, senior executive at CAI, a human resource management firm
with offices in Raleigh and Greensboro, said employers have been calling and
asking: “Is this for real?”
Business tax cut tops Pence legislative agenda
Written by Dan Carden for The Times of North West Indiana on December 05, 2013Economic Prosperity
INDIANAPOLIS | Ignoring data showing that Indiana's decade of
trickle-down prosperity policies haven't improved the income, health or quality
of life for most Hoosiers, Gov. Mike Pence promised Thursday to deliver still
more business-centered programs in the upcoming legislative session. "I think a rising tide lifts all boats," Pence said. "So
we're continuing to promote policies that will encourage investment and
jobs." The top item on the Republican governor's Roadmap 2014 is eliminating
the business personal property tax, which would sap another $1 billion a year
from cash-strapped schools and local governments already forced to cut services
due to the $950 million annual impact of property tax caps.
Pence said Indiana's tax on business equipment, which 38 other states
also impose, is an impediment to companies considering relocating to the state,
and eliminating it will further improve Indiana's already top-rated business
tax climate. "I truly do believe that by phasing out the business personal
property tax in the state of Indiana we will ensure that Indiana remains in the
very forefront of the competition to attract new investment and jobs,"
Alabama House Republicans release "Commonsense Conservative" agenda for 2014 session
MONTGOMERY, Alabama --- The Alabama House Republican Caucus today released
its 2014 legislative agenda, which House Speaker Mike Hubbard of Auburn said
would help businesses and the state’s economy. Several of the bills are intended to streamline or reduce taxes,
according to summaries of the bills released by the caucus. The caucus dubbed the nine-bill package the "Commonsense
Conservative" agenda. The 2014 session will be the last regular session of the four-year
term. Republicans have controlled the Legislature since winning
filibuster-proof majorities in 2010. Before that, Democrats had controlled the
Legislature for more than 130 years. Hubbard said next year’s agenda would be a strong complement to bills
the Republicans have passed during the term. “We’re not done building,” Hubbard said. “We’ll continue that in the
next quadrennium. But for this quadrennium, it’s a perfect way to cap it off.”
Legislature Passes Fix For $100B Pension Crisis
Written by Sean Powers and Jeff Bossert for Willradio.tv.online on December 03, 2013Economic Prosperity
The Illinois Legislature has approved a historic plan to eliminate the
state's $100 billion pension shortfall, considered the worst in the nation. The House voted 62-53 Tuesday in favor of the plan, which the Senate
approved just minutes earlier. It now goes to Gov. Pat Quinn, who has said he
will sign it. Legislative leaders say the plan will save the state $160 billion over
30 years by cutting retirement benefits for hundreds of thousands of workers
and retirees.Ahead of the vote, House Speaker Michael Madigan defended the
pension plan, saying it is not a one-sided bill.
“There will be changes here, much needed changes," Madigan said.
"This bill is a well thought out, well balanced bill that deserves the
support of this body, the state Senate, and the approval of Governor Quinn.” Republican House Minority Leader Jim Durkin also stressed the importance
of passing the pension overhaul. “I think it’s ironic today that the Detroit bankruptcy judge as it was
mentioned earlier did rule that the city of Detroit is eligible for bankruptcy
protection," Durkin said. "Our failure to act and to move in a positive
manner like today could ultimately put these systems in the same position as
the city of Detroit and shame on us if that occurs.”
Nevada money aimed at attracting federal drone program
CARSON CITY — Nevada is preparing to get into the drone business. The state Board of Examiners will be asked Dec. 3 to approve a request
from the Governor’s Office of Economic Development to use $1.46 million from a
legislative contingency fund to oversee the start-up of an unmanned aerial
vehicle program in Nevada. The funding request is contingent upon Nevada’s designation as a
national test site for the drone program. The states winning out in the
competition are expected to be notified by the Federal Aviation Administration
by Dec. 31. There are 25 finalists for six sites.
If approved by the Board of Examiners, the funding request will go to
the Legislature’s Interim Finance Committee on Dec. 9 for consideration. The 2013 Legislature set aside $4 million for the economic development
office to assist in drone test site development efforts. Gov. Brian Sandoval, a member of the Board of Examiners, pushed for the
funding in the 2013 session, noting that Nevada has been hosting military drone
operations for years. If Nevada is selected, Sandoval said the designation could bring
thousands of jobs, generate $125 million in annual state and local tax revenue
and have an overall economic impact of $2.5 billion.
No Nebraska counties will impose sales tax in 2014
The only Nebraska county with a sales tax will end it next year, state
tax commissioner Kim Conroy said Tuesday. Dakota County is planning to stop its half-cent sales tax in 2014,
because a voter-approved referendum has helped pay for a new jail and law
enforcement center. Joan Spencer, an assistant to the Board of Commissioners, said the
county started collecting sales tax money for the project Jan. 1, 2005. The tax generated $7.8 million to pay off 10-year
bonds. Spencer said the county paid off the bonds early, so the tax no longer
Nebraska has 93 counties and 530 cities. As of Jan. 1, the state will
have 208 cities that impose local option
sales taxes, ranging from a half-cent to 1.5 cents per dollar. Seward is among
the cities planning to raise their sales taxes to 1.5 percent next year. But Dakota County is the only county statewide to levy a sales tax,
according to the Nebraska Department of Revenue. Local-option sales taxes are more common among cities; counties mostly rely on property
taxes and, to a lesser extent, the inheritance tax and fees. The Dakota County sales tax has applied only to unincorporated areas
and in cities or villages that didn't already have a sales tax, Conroy said.
The sales tax did not apply to South Sioux City or the village of Jackson,
because both levy sales taxes of their own.
Idaho jobless claims drop to lowest since 2006
Written by The Associated Press for The Idaho Statesman on November 26, 2013Economic Prosperity
BOISE, IDAHO — Idaho's unemployment insurance claims dropped to their
lowest level since 2006, a year of strong economic growth that preceded the
deep recession that began in December 2007. The Department of Labor said Monday it paid 7,462 regular benefit
claims during the third week of November, 14 fewer than that week in 2006. The amount paid was still 23 percent higher than 2006, however, because
the average benefit is $25 higher this year at $255, reflecting benefit
increases over the past seven years. Through the third week of November, the total regular benefit payout
was $108.1 million, compared to $91.3 million through the same 47 weeks in
2006. In addition to regular unemployment benefits, the department paid
$585,000 in federally-financed extended benefits to 2,500 long-term unemployed
workers. Those end Dec. 31.
In 16 states, unemployment is at its lowest in at least four years
Unemployment reached multi-year lows for about a third of states last
month, but a full jobs recovery is still not here. Sixteen states saw the jobless rate in October fall to its lowest level
in more than four years. In all but two, October unemployment was at its lowest
level since late 2008 or the early months of 2009. In Minnesota, unemployment
hasn’t been this low since January 2008. And it’s been more than a decade since
North Dakota saw an unemployment rate of 2.7 percent as it did in October. (The
last time was August 2001.) In all, unemployment dropped from September to last
month in 39 states. And only three states—Arkansas, Oklahoma and Ohio—saw
nearly two-year highs.
But the situation isn’t as rosy as those statistics suggest. The jobs
recovery still pales in comparison to the recoveries following the 1981, 1990
and 2001 recessions, according to data from Doug Hall, director of the Economic
Analysis and Research Network at the Economic Policy Institute, a think tank
focused on the needs of low- and middle-income workers. Unemployment had nearly or fully recovered this many months after the
start of the three other recessions, as depicted in Hall’s chart below. In the
aftermath of the Great Recession, however, it remains high relative to where it
was at the start.
Montana unemployment rate falls to 5.2 percent
HELENA – The state Labor Department says Montana’s seasonally adjusted
unemployment rate fell to 5.2 percent in October, after holding at 5.3 percent
since July. The national unemployment rate was 7.3 percent in October. Labor Commissioner Pam Bucy says Montana added over 750 jobs in
September, but lost 57 in October. The state has added 1,722 jobs since October 2012. Montana’s unemployment rate was as low as 3.1 percent in late 2006 and
rose as high as 6.8 percent in the second half of 2010. It has been on a
downward trend since mid-2011.
Pa. Senate approves $2.3B for roads, bridges, transit
HARRISBURG - In a single afternoon, the state Senate on Wednesday did
what the House had agonized over for months: approved a $2.3 billion
transportation funding bill to repair aging highways and bridges, and bolster
mass transit across the state. The vote cements a major victory for Gov. Corbett by delivering the
biggest transportation spending plan in 15 years, one to address critical
infrastructure needs while creating tens of thousands of jobs. "This legislation is key to the success of Pennsylvania and health
and welfare of the region," said Sen. John Rafferty (R., Montgomery),
chairman of the Transportation Committee. The bill now goes back to the House for a pro forma vote Thursday
afternoon. It could be signed by Corbett the same day.
Wisconsin crowdfunding bill opens early stage investing to average citizens
Crowdfunding — the idea of getting lots of people to donate small
amounts of cash for a particular project or organization — has been around
since long before the Internet. The concept has been used for everything from public radio pledge
drives to helping families with medical bills. With advances in technology, however, crowdfunding has become a popular
way to raise money for just about any purpose, from an art project to a video
game startup. To date, there have been two distinct ways of using electronic
crowdfunding. One is using websites like Kickstarter or Indiegogo, where people
funding an idea get something in return for their money. For example, the
developers of Pebble Smartwatch raised more than $10 million by offering
investors the first batches of watches once they were manufactured, and at a
The other type of crowdfunding is aimed at more serious investors who
are looking to take an equity stake in a company. Platforms like CircleUp offer
legitimate businesses a way to do an initial public offering, where the public
can buy stock in a new venture. But regulations from the Securities and Exchange Commission limit
equity crowdfunding activity to “accredited investors,” defined as individuals
with a net worth of $1 million or more (not counting a primary residence) and
income of at least $200,000 annually or $300,000 for a couple.
SC governor receives report on regulatory review
A panel reviewing the approximately 3,000 regulations that South
Carolina's state agencies use has presented its report to Gov. Nikki Haley. Haley received the report, which includes an executive summary and
2,000 pages of appendices, on Friday. She told reporters on the Isle of Palms
she will spend the weekend plowing through the report of the Regulatory Review
Task Force. Haley created the 11-member group by executive order this year and told
the panel to review state regulations to determine which can be tossed out and
which need to be changed. Haley said one thing is clear and that's agency regulations are made
much too easily. She would like to see state lawmakers vote on each individual
regulation so they have a better idea of what the rules are for.
Pension rates to ease
VRS to vote today; rise for two local counties likely less than forecast
Local governments will likely get a welcome surprise when they receive
their biennial notice of pension rates for their employees next month — a
reduction in what they’ll have to contribute to local retirement plans for the
next two years. Or, in the case of localities such as Chesterfield and Henrico
counties, the rates will be lower than they expected a year ago, while slightly
higher than what they’re paying now. The Virginia Retirement System board of trustees is expected to vote
today on contribution rates for 583 local pension plans, covering almost
150,000 active and retired employees of counties, cities, towns, and political
subdivisions as small as local housing authorities. On average, those rates will go down to 9.91 percent of payroll,
compared with 10.63 percent currently paid and 11.11 percent that VRS predicted
a year ago.
Despite union vote, Washington state's tax incentives keep it competitive
State lawmakers’ quick passage last week of what might be the
biggest-ever corporate tax incentive was intended to be one-half of a two-part
deal to keep Boeing Co.’s 777X jet production in the Northwest. Today that $8.7 billion package stands alone. The deal sealer — an
extension of Boeing’s contract with its machinists — died Wednesday in the
union’s resounding rejection of a contract that would have fundamentally
changed worker pensions. Now what? The only certainty seems to be that Washington is no longer
assured of winning the 777X production or a new carbon-fiber wing fabrication
plant. On Thursday, Boeing began exploring its options around the country,
while saying it will still consider Washington. The setback is prompting questions about last
week’ hastily called special session and where the machinists’ vote leaves the
Cuomo to decide on expanding tax credits for film industry
ALBANY – Upstate is pitted against upstate over expanded tax breaks for
the movie industry, a controversy that has put Gov. Andrew M. Cuomo in the
referee’s seat, with a decision due today. At issue is whether to allow another 14 counties – in addition to the
40 counties approved in March – to offer extra state tax breaks to help lure
film companies to economically battered upstate regions. Critics say the bill not only changes the intent of the tax credit
effort approved just seven months ago, but also undermines the upstate economic
development purpose by including counties close to New York City – such as
Rockland and Putnam. Film companies based in New York City will be happy to use
the tax credit to shoot in those nearby counties rather than pay for lodging
and other costs of filming in, say, Buffalo.
“If the other 14 counties get this, a lot of films will slip away. It
will be a watered-down program that doesn’t meet its intended purpose,” said
Tim Clark, commissioner of the Buffalo Niagara Film Commission. The film tax credit program, like other economic development efforts
over the years, is engaged in an old New York plot: What’s good enough for one
region of the state must be good enough for everyone. As part of this year’s budget, lawmakers
approved an extra credit – 10 percent atop the existing 30 percent – that film
companies can get from the state for labor costs associated with shooting or doing
post-production on a movie in New York State. A $5 million total annual cap was
placed on the additional credit program, which was available to counties in
Western, Central and Northern New York.
Legislature approves billions in tax breaks for Boeing
OLYMPIA — The state Senate moved first on Saturday, passing aerospace
tax incentives and a measure aimed at boosting training for the aerospace
industry. “This is a generational opportunity,” said Senate Ways and Means
Chairman Andy Hill, R-Redmond. “This is about our aerospace economy.” The training measure, SB 5953, passed unanimously and the tax-incentive
bill, SB 5952, was approved 42-2. Democratic Sens. Bob Hasegawa, of Renton, and Adam Kline, of Seattle
voted no. Hasegawa was the only senator to raise significant objections during
the floor debate. “I have a philosophical issue with putting this economic development
strategy on the backs of the Machinists,” he said. “We’re asking them to sacrifice
the future of the next generation of Boeing workers. That is not a
sustainable economic development
strategy for the state.”
Boeing wants the Machinists union to accept a new eight-year contract
with big cuts in future pension and health-care benefits to secure the 777X for
Washington state. That union approval could prove troublesome, given the early
reviews of the Boeing proposal. In addition, the company wants the Legislature to boost training for
aerospace workers and approve tax incentives worth more than $8 billion. The company has also stressed that it wants lawmakers to approve a
multi-billion dollar transportation package. Inslee called the special session, which started Thursday, to fulfill
the state’s side of the bargain.
Walker signs crowdfunding bill
MADISON — Gov. Scott Walker has signed a bill allowing crowdfunding for
the online sale of stocks in fledgling companies. The proposal Walker signed Thursday passed unanimously in the
Legislature and has broad support in Wisconsin’s business community. Popular online crowd funding sites like Kickstarter only allow for
people to make donations to a certain cause, often in exchange for a token of
appreciation like a T-shirt or bumper sticker. The new Wisconsin law will allow investors to purchase equity in a
company. Backers say it’s a simple way to help small businesses by opening them
up to a wide pool of potential investors. Wisconsin is one of the first states nationwide to allow for such
investing through crowdfunding.
Washington special legislative session starts Thursday
OLYMPIA – The Washington Legislature will meet in a special session
starting Thursday to consider a $10 billion transportation package and other
legislation Gov. Jay Inslee said is key to landing the manufacturing plant for
a new Boeing jetliner. Standing with legislative leaders, Boeing executives and union
officials, Inslee said a combination of transportation improvements, extended
tax breaks, faster permits for building and aerospace education programs would
guarantee the company will build the new jetliner and a new carbon-fiber wing
The current 777 facility supports 56,000 jobs, and the new plane will
create thousands more, Inslee said: “These jobs are ours if we act now. ”While he contended the Legislature could agree
to all the bills in seven days, legislative leaders cast some doubt on that
time frame. There is no agreement yet on what taxes would be raised to pay for
the transportation package, or how it would be spent among the state’s different
needs for new roads and the maintenance of existing roads and bridges. Some
legislators also want significant reforms in the way the state contracts and
pays for major projects.
Maine has lots of businesses, and we can get them to grow
People may often wonder: How do you actually create jobs? Well, often
it starts with an entrepreneur or two. Studies have shown economic growth depends on a thriving
entrepreneurial foundation made up of small enterprises. Because they are more
nimble and better able to generate a return with seed funding or research and
development money, small enterprises serve as an engine for job growth and
productivity. Indeed, the vast majority of new businesses start small. New companies
with one to four employees account for 86 percent of new firms formed each year
since the late 1970s. The tricky part is to ensure those firms grow and
The entrepreneurs of Maine — and it has many — are a resource, and they
need much more attention and support. Maine — which Forbes Magazine ranked worst for business — actually
ranks 29th for entrepreneurship, according to the University of Nebraska’s
Lincoln Bureau of Business Research, which measures states based on the income
of entrepreneurs, business formation rates, technological innovation and growth
in the number of entrepreneurs. And it has gotten to that level with little investment. Maine spends
$11.31 per capita in venture capital investment, according to the National
Venture Capital Association. Massachusetts, which is ranked No. 1 for
entrepreneurship, spends $432 per capita on venture capital.
States With Big Military, Research Facilities Hurt Most by Shutdown
States with large military installations and major research
institutions will suffer the greatest economic hit from the 16-day federal
shutdown – especially the Washington, D.C. area, New Mexico and Alabama,
according to new estimates from Moody's Analytics. D.C.'s economy could take a whopping 5.59 percentage point dive in the
fourth quarter. Next hardest hit: Maryland with an expected GDP reduction of
1.11 percentage points, Virginia 0.73 percentage points and West Virginia 0.64
percentage points. Outside of the capital region, Moody's Analytics projected New Mexico's
economy could suffer an 0.63 percentage point drop in the fourth quarter and
Alabama 0.55 percentage points. The national economy will likely be back to recovery by early 2014
after Congress and the White House reached a bipartisan deal that reopened the
federal government and raised the debt ceiling, according to Steven G.
Cochrane, managing director of Moody's Analytics.