Friday, February 19, 2010

STATES of Distress!!!

You Can’t Put Lipstick on These PIGS:

California
Budget gap (as a % of the total budget): 22%
Gap: $22.2 billion

New York
Budget gap (as a % of the total budget): 9.8%
Gap: $5.5 billion

Florida
Budget gap (as a % of the total budget): 19.9%
Gap: $5.1 billion

New Jersey
Budget gap (as a % of the total budget): 7.7%
Gap: $2.5 billion

Arizona
Budget gap (as a % of the total budget): 19.9%
Gap: $2 billion

Nevada
Budget gap (as a % of the total budget): 16%
Gap: $1.2 billion

All data for fiscal year 2008
Source Businessweek

Meg Whitman the old CEO of E-Bay has some good broad based solutions for California as she campaigns against Arnold. I watched an hour long video on FORA.tv regarding her strategy. Ingenious she plans to terminate some major spending. Her 3 pillars were jobs, strategic spending cuts, and education. She plans on increasing jobs by cutting regulation and red tape in opening businesses. Whitman cited a best practice in Texas that California plans to implement where new business owners fill out one master application and the approval and licensing process is handle behind the scenes. Whitman is also a big advocate of charter schools and plans to take advantage of their success. Charter schools also cut the budget because they are private therefore teachers won't be paid the increased benefits packages that come with the public sector. It's is also easier to fire teachers without the unions when teachers under perform. Whitman's major plan for cutting spending was through leveraging technology's benefits and reducing headcount and benefits for new state employees. Whitman stressed strong leadership, focus, and accountability would be her keys to success.
http://fora.tv/2010/02/03/The_Power_of_Many_Meg_Whitman_in_Conversation#Meg_Whitman_Calls_for_Reducing_Number_of_CA_State_Workers

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