Best Practices Report 2012 Final

Best Practices
2012

Republican Governors Public Policy Committee
Best Practices Report
October 24, 2012
www.rgppc.com

Please note this is an internal RGPPC document for governors and their staff and is not for public
distribution

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.

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

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RGPPC Best Practices 2011
Introduction:

This document is the second installment of RGPPCs Best Practices effort. 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 various other
sources of approaching policy matters of importance to states. 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 Arizona to Indiana, New Jersey to New Mexico, 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, but
rather in the state capitols, 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.

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Table of Contents:

Chapter 1: Creating Jobs and Economic Opportunity, Pages 4-23
States featured include AZ, FL, IA, ID, IN, MS, NV, NM, PR, TN, UT, VA, WY
Chapter 2: Providing Better Access to Quality and Innovative Education and Workforce Development,
Pages 24-55
States featured include AZ, GA, IN, IA, KS, LA, NJ, OK, PA, SC, SD, TN, VA, WI, WY
Chapter 3: Harnessing Innovations in Energy and Environmental Policy, Pages 56-74
States featured include AK, IA, NJ, ND, OH, OK, PA, SD, TN, UT, VA, WY
Chapter 4: Reforming Health Care, Pages 75-87
States featured include IA, LA, ME, NE, PA, TN, UT
Chapter 5: Balancing State Budgets: Funding State Priorities, Providing Tax Relief and Living within
States Means, Pages 88-103
States featured include GA, IN, KS, MI, NE, ND, OH, TN, TX, VA, WI
Chapter 6: Promoting Responsible and Efficient Government, Pages 104-122
States featured include AL, AZ, FL, IA, LA, OK, SD, TN, UT, VA, WY
Chapter 7: Creating Safer Communities, Pages 123-137
States featured include GA, IA, NJ, OH, OK, TN, UT
Chapter 8: Topping the Charts State by State Rankings, Pages 138-140

For your reference, the 2011 Best Practices table of contents is below. To view the entire document,
see the RGPPC website: http://rgppc.com/best-practices-2011/

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

Republican governors believe that jobs are not created through government, but instead through the
ingenuity of entrepreneurs, innovators, and risk-takers. Government has a critical role in setting up a
framework that doesnt strangle job-creators with cumbersome and duplicative regulations, allows for
the efficient movement of capital, educates and trains employees and future business leaders, and
builds the infrastructure necessary for the transfer of goods and services. With national unemployment
at 7.8 percent
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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.

Catalyzing job creation requires an amalgamation of many different policies. Policy entrepreneurship
will be critical as policymakers work to create the right environment that allows enterprise to prosper.
The innovative policies that are covered in other chapters of this report contribute to this environment.
In the jobs chapter we will focus on two critical drivers of economic growth: economic development
policy and infrastructure development and maintenance.

Featured states and programs in this chapter include:
Economic Development
o ARIZONA Governor Jan Brewer, Arizona Commerce Authority
o IDAHO Governor C.L. Butch Otter, Idaho Global Entrepreneurial Mission Council
o IOWA Governor Terry Branstad, High Quality Jobs: Business Tax Credits
o IOWA Governor Terry Branstad, Employee Stock Option Plans
o MISSISSIPPI Governor Phil Bryant, Small Business Regulatory Flexibility Act
o MISSISSIPPI Governor Phil Bryant, Health Care Industry Zone Act Signed by Governor
o NEVADA Governor Brian Sandoval, Las Vegas Regional Economic Development Council
o TENNESSEE Governor Bill Haslam, Expansion of Fast Track Program to include new
Economic Development Fund
o UTAH Governor Gary Herbert Economic Development Coordinating Council
o VIRGINIA Governor Bob McDonnell, Elimination of Accelerated Sales Tax Program
o VIRGINIA Governor Bob McDonnell, eVA Mobile 4 Business App, allows for easier
access to state procurement contracts
o VIRGINIA Governor Bob McDonnell, 2012: The Year of the Entrepreneur
o WYOMING Governor Matt Mead, Economic Diversification: Technology
Transportation and Infrastructure
o FLORIDA Governor Rick Scott, Florida Seaport Transportation and Economic
Development Program
o INDIANA Governor Mitch Daniels, Ohio River Bridges Project Breaks Ground
o IOWA Governor Terry Branstad, Road Use Tax Efficiencies
o NEW MEXICO Governor Susana Martinez, Electronic Construction Permit Review
System
o PUERTO RICO Governor Luis G. Fortuo, Model for Public-Private Partnerships

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U.S. Department of Labor. Bureau of Labor Statistics. The Employment Situation - September 2012. 05 Oct. 2012.
Web. 05 Oct. 2012. http://www.bls.gov/news.release/empsit.nr0.htm.

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Other Resources:
CATO Institute, 2012 Fiscal Policy Report Card on Americas Governors
US Chamber, 2012 Enterprising States: Policies that Produce
NRSC, Senate Republican Jobs Plan: An outline for creating American jobs and prosperity

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Economic Development:

ARIZONA
Governor Jan Brewer
Arizona Commerce Authority

By Executive Order on June 29, 2010, Governor Jan Brewer established the Arizona Commerce Authority
(ACA), unveiled its board of Arizona C-Level Executives, and committed $10 million to advance Arizonas
economy through its approach to economic development. The move starts the transition of the old
Arizona Department of Commerce into the new, quasi-public Arizona Commerce Authority.
The private-sector leadership board positions will help Arizona be more responsive to business needs
and opportunities. Governor Brewer will serve as chair of the board and will be joined by a prestigious
and powerful mix of Arizonas business leaders, all of whom are committed to securing a more complete
global competitiveness strategy to advance Arizonas economy.

Read the full text of the announcement:
http://www.azgovernor.gov/dms/upload/PR_062910_BrewerEstablishesNewAZCommerceAuthority.pdf

Unique Partnership with AZ Furnace
On August 27, 2012, the ACA announced that it would begin collaborating with AZ Furnace, Arizona's
first-of-its-kind statewide business accelerator program that encourages entrepreneurs from across the
country to find and commercialize innovations developed within the state's universities and research
institutions. Partners already include Arizona State University (ASU), Northern Arizona University (NAU)
and the Dignity Health Group.

The ACA will commit up to $400,000 in seed funding, with BioAccel matching up to $150,000. This
financial commitment is an investment in Arizona's overall economy by fostering promising, innovative
business creation - a key initiative of both the ACA and BioAccel.

The AZ Furnace program is a competitive process that encourages serial entrepreneurs, alumni,
researchers, faculty, and post-docs to look at Arizona technologies in a new way. The university and
research intellectual property (IP) has been amassed in a user-friendly database to promote competition
among entrepreneurs interested in commercializing those technologies. Each successful team will also
receive incubator/accelerator services from AZ Furnace partners.

AZ Furnace is designed to propel Arizona to a leadership position in the country by raising the visibility of
Arizonas research institutions and technology transfer offices and driving startup activity that is directly
based on intellectual property and new technology disclosures.

Furnace will offer high-potential startup ventures a package worth more than $50,000 in cash and
services. The package includes at least $25,000 in seed funding, incubation space in one of the
program's technology-providing institutions (ASU, NAU, Dignity Health Group, BioAccel), an intensive,
mentor-led program for six months, and additional support services. Companies accepted into AZ
Furnace must be based in Arizona as a stimulant to regional economic development and job creation.

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For more information, visit the Arizona Commerce Authority (ACA) website:
http://www.azcommerce.com/ and view the full release http://www.azcommerce.com/assets/Furnace-
Funding-Announcement_Final-for-relase-21.pdf

For more information on AZ Furnace, visit: http://www.azfurnace.org/

IDAHO
Governor C.L. Butch Otter
Idaho Global Entrepreneurial Mission Council

The Idaho Global Entrepreneurial Mission was one of Governor Otters top legislative priorities during
the 2012 legislative session, with House Bill 546 passing by an overwhelming majority in both the Idaho
State Senate and House of Representatives. IGEM also received strong support from Idahos universities,
the Idaho State Board of Education, the Idaho Technology Council, Idaho Association of Commerce and
Industry, the Idaho Chamber Alliance, and the Idaho National Laboratory.

One of the primary responsibilities of the IGEM Council will be developing a statewide strategic plan to
foster innovation. The Council also will develop and oversee the Idaho Global Entrepreneurial Mission
Grant Fund, which includes $950,000 appropriated by the Idaho State Legislature for grants. IGEM Grant
Funds will leverage private-industry guidance and the talent and expertise of Idahos research
universities to commercialize innovative and viable technologies that will strengthen Idahos economy,
create more job opportunities in our communities and meet the Governors Project 60 goals.

Membership on the IGEM Council represents a balance of private- and public-sector interests in
recognition of the strong partnerships that are necessary for the private sector to create viable business
and career opportunities through harnessing the research and innovation that is central to the mission
of Idahos universities and the Idaho National Laboratory.

Idaho has a tremendous opportunity to lead the nation in development of innovative technologies that
will help existing businesses grow and nurture the startup of new employers, Governor Otter said.
IGEM represents a long-term investment in our states future, and Im confident weve assembled an
experienced, knowledgeable team that will facilitate and accelerate the transfer of new technologies
from our universities to the marketplace.

Read more here: http://commerce.idaho.gov/news/2012/06/inaugural-idaho-global-entrepreneurial-
mission-council-appointed.aspx

IOWA
Governor Terry Branstad
High Quality Jobs

The High Quality Jobs program provides qualifying businesses tax credits to off-set the cost incurred to
locate, expand, or modernize an Iowa facility. To qualify, a business must be a non-retail or non-service
business and meet wage threshold requirements.

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Eligibility Requirements:
A business must meet wage threshold requirements.
Actual award amounts will be based on the business's level of need; the quality of the jobs; the
percentage of created or retained jobs defined as high-quality; and the economic impact of the
project.
Created jobs must pay at least 100 percent of the qualifying wage threshold at the start of the
project and 130 percent of the qualifying wage threshold by project completion and through the
project maintenance period.
Retained jobs must pay at least 130 percent of the qualifying wage threshold throughout the
project completion and maintenance periods.
The business must provide a sufficient benefits package to all full time employees that includes
at least one of the following:
o Business pays 80 percent of medical and dental premiums for single coverage plans, OR
o Business pays 50 percent of medical and dental premiums for family coverage plans, OR
o Business pays for some level of medical and dental coverage and provides the monetary
equivalent value through other employee benefits.

Tax Incentives
The following tax incentives may be available:
A local property tax exemption of up to 100 percent of the value added to the property to a
period not to exceed 20 years.
An investment tax credit equal to a percentage of the qualifying investment, amortized over five
years. This tax credit is earned when the corresponding asset is placed in service and can be
carried forward for up to seven additional years or until depleted, whichever occurs first.
A refund of state sales, service or use taxes paid to contractors or subcontractors during
construction.
For distribution center projects, a refund of sales and use taxes paid on racks, shelving, and
conveyor equipment.
The State's refundable research activities credit may be increased while the business is
participating in the program.

For more information on Iowas High Quality Jobs program, visit
http://www.iowaeconomicdevelopment.com/business/highquality_jobs.aspx

IOWA
Employee Stock Option Plans

In 2012, Governor Branstad signed legislation authorizing Employee Stock Option Plans (ESOPs). In order
to encourage the formation of ESOPs in Iowa, the state offers a 50% capital gains deduction from state
income taxes for the sale of stock to a qualified Iowa ESOP. Unlike federal tax law, Iowa does not require
that the seller reinvest the proceeds of the sale in qualified property and does not limit the incentive to
sales of stock in C corporations, making the incentive particularly attractive to the many closely held S
corporations around the state.

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An ESOP is one of the most popular kinds of employee ownership in the United States. ESOPs can be
created by both C corporations and closely held S corporations. To create an ESOP, a business sets up a
trust fund and then purchases the company stock from the existing shareholders, often financing the
transaction with a loan. The trust fund is divided into shares which are allocated to the employees. The
employees then earn these shares over time as a benefit, often in increasing amounts as their pay and
seniority increase. When an employee terminates employment, the shares are repurchased by the
business at fair market value.

ESOPs provide the following potential tax benefits to employers and employees:
As a defined contribution plan under the federal Employee Retirement Income Security Act
(ERISA), an ESOP allows employees to obtain the same beneficial income tax treatment that
other qualified retirement plans, such as 401(k) and IRAs, receive.
Company contributions of cash, stock, or dividends to the ESOP trust are tax deductible, as are
any amounts that go to pay down the loans used to finance the ESOP trusts purchase of
company stock.
In the case of C corporations, sales of stock to the ESOP may be eligible for a federal income tax
deferral if the proceeds are reinvested in qualifying securities.
In the case of S corporations, the percentage of the company owned by the ESOP trust is
exempt from federal income taxes. Thus, if a company is 100% ESOP-owned, all of the profits
are exempt from federal income taxes.

In addition to the tax benefits of an ESOP, independent research into the economic benefits of ESOPs
has shown the employee morale and retention improve, that company profits and revenues increase,
and that ESOP companies weather both good and bad business climates better than non-ESOP
companies. When Iowa companies are more competitive in a global economy, they are more likely to
succeed, and when they are employee owned, they are more likely to stay in their existing communities,
making the states economy that much stronger.

Full text of the relevant Act can be found at:
http://coolice.legis.iowa.gov/linc/84/external/govbills/HF2465.pdf

MISSISSIPPI
Governor Phil Bryant
Small Business Regulatory Flexibility Act

On April 23, 2012, Gov. Phil Bryant signed into law the Small Business Regulatory Flexibility Act (Senate
Bill 2398) that aims to remove unnecessary barriers to business growth by giving small businesses a
voice in state rulemaking processes.

SB 2398 creates a framework that allows for the review of current regulations and any proposed rules
and or regulations that would adversely impact small businesses.

The Small Business Regulatory Flexibility Act organizes a volunteer committee of former and current
small business owners and officers who will review proposed and existing regulations in Mississippi to
determine if those regulations are harmful to small businesses. Committee members will work closely
with state agencies to either modify or ease regulations that are determined to place unfair burdens on

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small businesses. State agencies will also report on how proposed regulations will impact small
businesses.

The governor, lieutenant governor and speaker of the house each make four appointments to the
twelve-member committee. The governor appoints the committee chair. Appointees must be current or
former small business owners or operators and may be nominated for appointment by a local chamber
of commerce, small business industry organization or a small business owner or officer. Members will
serve two-year terms with a limit of three successive terms.

For complete text of announcement: http://www.governorbryant.com/small-business-a-cornerstone-of-
mississippis-economy/

MISSISSIPPI
Governor Phil Bryant
Health Care Industry Zone Act Signed by Governor

On May 14, 2012, Legislation aimed at expanding medical care and increasing the number of health care
jobs in Mississippi, House Bill 1537, was signed by Gov. Phil Bryant.

The Health Care Industry Zone Act authorizes the establishment of health care zones throughout the
state where significant acute-care facilities exist. An area may be certified by the Mississippi
Development Authority (MDA) as a health care industry zone if the following requirements are met:
the area is located within three contiguous counties that have certificates of need of more than
375 acute care hospital beds and/or is a county that has a hospital with a minimum capital
investment of $250 million and for which construction is completed before July 1, 2017
the health care industry facility is located within a five-mile radius of a facility with a certificate
of need for hospital beds
the zoning of the local government unit allows the construction or operation in the proposed
health care industry zone of the health care industry facility.

Health care businesses like laboratory testing facilities, medical supply distributors and biotechnology
research facilities that either make an investment of at least $10 million or create a minimum of 25 full
time, permanent jobs within the health care zone are eligible for income tax, sales tax, and property tax
incentives.

Tax incentives provided for eligible Health Care Industry Facilities located in qualified Health Care
Industry Zones are:
An accelerated, 10-year state income tax depreciation deduction
A sales tax exemption for equipment and materials used in the construction of the facility
A property tax fee in lieu for 10 years for projects investing over $10 million or a 10-year ad
valorem tax exemption.

For full text of the legislation: http://billstatus.ls.state.ms.us/2012/pdf/history/HB/HB1537.xml

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NEVADA
Governor Brian Sandoval
Las Vegas Regional Economic Development Council

On May 2, 2012, Governor Sandovals Office of Economic Development announced that it is taking
another step toward the makeover of how the state attracts, expands and retains companies by
creating The Las Vegas Regional Economic Development Council (the Council).

The Council will provide a more expansive approach to recruiting businesses to Nevada than the
previous organization Nevada Development Authority. Eleven separate organizations put forth
proposals to be included in the Council as one of the regional development authorities which will be
eligible for state funding to assist their efforts.

The organization plans to have committees devoted to marketing, branding and recruitment; business
retention and expansion; higher education and work force development; international business;
redevelopment; and government affairs.

For complete text of the announcement: http://www.diversifynevada.com/news/nevadas-economic-
development-effort-hits-next-phase/

Press
Major changes in economic development efforts under way in Nevada
By Richard N. Velotta May 2, 2012
Vegas Inc.

The Governors Office of Economic Development took another step toward the makeover of how the
state attracts, expands and retains companies Tuesday when state officials opened requests for
proposals to form newly minted regional development authorities.

The new iteration of a development authority includes a proposal from a superstar team of key
Southern Nevada business stakeholders with interests in diversifying the economy through the
recruitment of businesses, assisting existing businesses with their expansion plans and preventing
companies from being lured to other states.

Its a much more expansive approach than strategies that have been used for years by one of Las Vegas
primary drivers of economic development the Nevada Development Authority and its lead
executive, President and CEO Somer Hollingsworth.

As a result, Hollingsworths role is expected to be greatly diminished. And in the NDAs place will be a
new group comprising economic development leaders from Southern Nevadas municipalities, chambers
of commerce and the education community as well as the NDA.

The new group already has begun the process of finding a new chief executive.

Hollingsworth did not immediately respond to calls requesting comment on the change in the NDAs role
and how it could affect him professionally. Some are hoping he would work in some capacity with the

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organizations new CEO because of his long tenure with the organization and his vast institutional
knowledge.

For now, the new group is calling itself the Las Vegas Regional Economic Development Council, but that
could change.

The Governors Office of Economic Development received 11 proposals by Tuesdays deadline, with the
one from the Las Vegas group the only one representative of Clark Countys interests an indication
that the areas key players appear to be working together.

Other development authority proposals came from a collaborative group representing interests in
Northern Nevada. The other nine were from groups in different rural counties.

Mike Skaggs, deputy director of the Governors Office of Economic Development who oversaw opening
the requests, said some of the proposals appear to be filled with elaborate detail, giving him hope that
the state is on course to begin a new chapter in growing the states economy.

The state office will now take until the end of May to evaluate the requests and determine which
organizations will be qualified as regional development authorities, which will make them eligible for
state funding to assist in their efforts. Theres no limit to the number of authorities that could be
qualified from the 11 submissions.

In the meantime, the process is a sea change for the NDA that includes sharing responsibilities with
leaders of other organizations.

Its a lot broader mission than what we had done before at the NDA, said Glenn Christenson, chairman
of the NDAs board of directors. The new group felt it was appropriate to find a new leader who has
done this kind of thing before.

The Las Vegas Regional Economic Development Council has contracted with Jorgenson Consulting, a
Greensboro, N.C.-based executive search company that specializes in community economic
development recruitment, to find a CEO for the new development authority

Read the full text of the article: http://www.vegasinc.com/news/2012/may/02/major-changes-
economic-development-efforts-under-w/

TENNESSEE
Governor Bill Haslam
Expansion of Fast Track Program to include new Economic Development Fund

On May 17, 2012, Tennessee Gov. Bill Haslam signed legislation to expand the states FastTrack program
to specifically support economic development in rural communities and for exceptional projects.

The legislation, HB 2344/SB 2206, created the FastTrack Economic Development Fund, an expansion of
the Department of Economic and Community Developments (ECD) current infrastructure and job

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training program. The legislation resulted from a 12-month review of ECDs incentive programs with
input from companies, site selection consultants and economic development stakeholders.

The FastTrack economic development grants or loans, designed to assist eligible businesses, are made to
local governments or to their economic development organizations. These grants or loans may be used
to facilitate economic development activities that are not eligible for FastTrack infrastructure
development or job training assistance funds. These activities include grants or loans for retrofitting,
relocating equipment, purchasing equipment, building repairs and improvements, temporary office
space or other temporary equipment related to relocation or expansion.

By making reimbursable grants to local industrial development boards, the fund provides additional
grant support for companies expanding or locating in Tennessee, and the legislation stipulates that the
fund will only be used in exceptional cases where the impact of the company on a given community is
significant.

Tennessee is recognized as one of the best places to do business in the country, and this legislation
gives us another tool in the toolbox to help make Tennessee the No. 1 location in the Southeast for high
quality jobs by focusing on our rural communities and recruiting and growing significant jobs, Haslam
said.

Read the full text of the announcement: http://news.tn.gov/node/8842

UTAH
Governor Gary Herbert
Economic Development Coordinating Council

On September 20, 2011, Utah Governor Gary R. Herbert convened the inaugural meeting of the
Governor's Economic Development Coordinating Council. With eleven members representing Utah's key
players on the economic development front, the Council was created as part of the Governor's long-
term economic development initiative to ensure the collective efforts of government and the business
community are focused on jobs.

After detailing specific guiding principles, like fiscal prudence, sensible regulation and empowering the
private sector, Governor Herbert announced the council's singular focus: Accelerate support for private
sector efforts to create 100,000 jobs in 1,000 days.

The Governor's seven action items for the Council were:

1. Continue to recruit new companies to the state.
2. Reduce taxes on business expansion inputs for local Utah companies.
3. Increase access to capital for small and start up businesses. Work with the Utah Fund of Funds
to encourage them to focus, first and foremost, on assisting Utah companies.
4. Assist the growth of companies in rural Utah by expanding the Business Expansion and
Retention program and the Rural Fast Track Program.
5. Expand our global vision by doubling Utah exports in the next five years.

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6. Implement the state's 10-Year Energy Plan to ensure access to affordable, reliable, and
sustainable energy.
7. Ensure a stable business environment and maintain Utah's AAA bond-rating through regulatory
reform and fiscally prudent management of state government.

http://www.utah.gov/governor/news_media/article.html?article=5581

VIRGINIA
Governor Bob McDonnell
Elimination of Accelerated Sales Tax Program

On May 25, 2012, Governor Bob McDonnell signed the Caboose Budget Bill, delivering on his promise
to speed up the phasing out of the Accelerated Sales Tax program.

More than 8,800 businesses with at least $1 million in taxable sales were previously required to make
additional sales and use tax payment in June. These businesses had to pay their regular payment of sales
tax collected in May, due on June 20, as well as the new accelerated payment, which is equal to 90
percent of their taxable sales for the previous June.

In 2011, Governor McDonnell signed legislation increasing the sales threshold from $1 million to $5.4
million, relieving more than 7,000 retail dealers of the additional payment requirement. Legislators
agreed in 2010 to end the Accelerated Sales Tax program by June 2021 and to begin the roll-back in
fiscal year 2013. The governor's proposal moved the start of the phase-out up a year.

The Caboose Budget Bill, which adjusts Commonwealth funding for the remainder of the current
biennium, put the program's phase-out on a faster pace by raising the sales threshold to $26 million,
thus reducing the number of businesses required to make the extra payment in June 2012 to 386. That's
a reduction of nearly 96 percent since 2010. The Caboose Budget Bill included a $50 million reduction in
general fund revenues to account for the funds that the dealers will not have to pay in June.

http://www.governor.virginia.gov/news/viewRelease.cfm?id=1291

Press
Governor Signs FY 2012 Caboose Budget
Contributed Report June 11, 2012
Hopewell News & Patriot

Governor Bob McDonnell signed, without any vetoes, the final caboose budget for FY 2012 on Friday,
May 25. He received both the FY 2012 caboose budget and the final biennial budget for FY 2013-2014 as
passed by the General Assembly on Wednesday, May 23rd. In keeping with his intention to quickly
finalize the budget, the governor plans to act on the FY 2013-2014 biennial budget in the days ahead.

Speaking about signing the caboose bill, Governor McDonnell commented, Upon final passage of both
the caboose bill and new FY 2013-2014 biennial budget, I said that I would act quickly, and in a limited

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manner, to finalize both budgets so that Virginias localities would be able to budget prudently for the
coming years. The enactment of the caboose budget bill will allow us to proceed with the essential
business of the Commonwealth in a timely and fiscally responsible way, which has been characteristic of
our tradition of sound fiscal operations in Virginia. I intend to take final action on the FY 2013-2014
budget in the days ahead.

Read the full text of the article: http://www.hopewellnews.com/article_4572.shtml#.UBADAGHY__M

VIRGINIA
eVA Mobile 4 Business App, allows for easier access to state procurement contracts

On August 14, 2012, Governor Bob McDonnell announced the launch of a free mobile application for
eVA, Virginia's award-winning electronic procurement system. The eVA Mobile 4 Business app allows
anyone with an Internet-enabled mobile device (iPhone, iPad, Android, Blackberry, etc.) to have real-
time access to Virginia government business opportunities-anywhere, anytime.

Virginia is the first state to launch a mobile app that brings bid opportunities and solicitations literally to
the fingertips of its suppliers and the general public, giving them immediate access to the thousands of
business opportunities published every year and providing increased visibility into how state
government spends the taxpayers' dollars.

Virginia's eVA Program also recently launched Quick Quote Reverse Auction, an addition to the system's
already powerful online bidding tools. This tool allows suppliers to bid multiple times offering better and
better pricing for a single business opportunity thus increasing their chances to receive a contract.
Unlike a standard auction where bid prices increase during the bidding period, Reverse Auction is
designed to seek the lowest price for goods and services. King George County was the first to take the
new tool for a "test drive" recognizing opportunities for increased competition and resulting savings.
They were excited to see their first auction prices for a specialized fire department vehicle, which began
at a high of $67,890, result in a winning low bid of $37,100, a savings of 45 percent.

Whether in the office or on the move, the eVA Mobile 4 Business app gives businesses immediate access
to all bid opportunities and solicitations published on eVA's public Virginia Business Opportunities (VBO)
page. The app also includes personalized features allowing businesses to follow specific opportunities by
adding them to a Watch List. With a variety of other exciting features this app brings real business value
to the world of mobile computing.

Getting the app is simple. Find it in the Apple and Android app stores by searching for eVA Mobile 4
Business or use your mobile browser to access the web version at www.eva.virginia.gov/evamobile.
The eVA Mobile 4 Business app is just the latest example of Virginia using technology to make it easier
to do business with government, especially for small businesses to do business with Virginia, while
increasing public visibility and government accountability.

Forbes.com recently lauded Virginia and the eVA Program as one of the top 10 state/local governments
to storm industry by transacting into the Cloud. Cloud computing has proven that government agencies
can provide improved services at lower cost. The Commonwealth of Virginia saves about $30 million

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annually through its eVA Program by leveraging a Software as a Service in the Cloud, which, to date, has
conducted more than 3.7 million purchases for over $33 billion for hundreds of state agencies,
institutions and local governments.

To read full text of announcement: http://www.governor.virginia.gov/news/viewRelease.cfm?id=1379

VIRGINIA
2012: The Year of the Entrepreneur

At a press conference in Richmond, Governor Bob McDonnell declared 2012 "The Year of the
Entrepreneur" in the Commonwealth of Virginia. February 22
nd
was the first day of events that will be
held throughout the year to highlight the role of entrepreneurs in creating opportunity for other
Virginians; show why Virginia is the best place to start and grow a business; and to make the connection
between education and job creation.

After the kick-off press conference, Shawn Boyer, CEO of Snagajob.com and Jonathan Aberman of
FoundersCorp spoke at an Entrepreneur Day Lunch. Following the lunch, Tom Silvestri moderated an
Entrepreneurial Town Hall, with participants in fields ranging from high-tech to agriculture to retail to
biotech from around the Commonwealth.

The Year of the Entrepreneur will include a business plan competition, entrepreneurial roundtable
events, one-on-one meetings with small business owners, the Small Business Summit, a college
"elevator pitch competition" and other events. Governor McDonnell is also making the commitment to
personally meet with Virginia's business owners during newly designated "monthly office hours for
entrepreneurs," which he will use to discuss first hand issues facing Virginia's job creators and
innovators.

http://www.governor.virginia.gov/News/viewRelease.cfm?id=1146

WYOMING
Governor Matt Mead
Economic Diversification: Technology

On February 18, 2011, less than 50 days after taking office, Governor Matt Mead signed HB 0117, the
Data Center Incentive bill, providing him a tool for economic development and to help open the door for
diversifying the economy.

The bill created incentives for the construction of data centers in Wyoming. Data centers are a great
match for Wyoming, which has abundant and affordable energy, a naturally cool climate to reduce
cooling costs and the necessary fiber optics.

On March 19, 2012, Governor Mead committed incentives for Microsoft to build a $112 million data
center in Wyoming. Construction on that facility is underway. Governor Mead also helped open the

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NCAR-Wyoming Supercomputing Center. The center is home to one of the fastest computers in the
world.

These efforts are all part of Governor Meads vision that technology can emerge as another leading
sector of Wyomings economy. This is reliant on the expansion of broadband connectivity to the
Internet. In October 2012, Governor Mead co-sponsored a summit on broadband and brought together
industry leaders to get feedback on how the state can better support their companies as they grow.

For the full text of this legislation: http://legisweb.state.wy.us/2011/bills/HB0117.pdf

Transportation and Infrastructure:

FLORIDA
Governor Rick Scott
Florida Seaport Transportation and Economic Development Program

On June 14, 2012, Governor Rick Scott signed two bills that facilitate economic development
opportunities by prioritizing Floridas investment in vital transportation projects, including
improvements to Floridas 14 deep-water sea ports. Improvements to Floridas ports ensure they are
prepared to benefit from the anticipated international trade expected from the expansion of the
Panama Canal, ratified free trade agreements and the growing economies of Central and South America.

The legislation positions the Florida Department of Transportation to build an interconnected, efficient
transportation system, as guided by its long-range vision plan. The legislation reduces bureaucracy and
streamlines decision making to allow faster project delivery for infrastructure improvements that
employ creative financing alternatives, offer transportation choices, and develop future transportation
corridors.

Specific benefits to Floridas ports include funding initiatives that allow the private sector to invest in
projects and grow jobs. The funds available for the Florida Seaport Transportation and Economic
Development Program are increased to $15 million from $8 million. In addition, two programs are
created to increase Floridas investment in seaports:

The Strategic Port Investment Initiative within the Florida Department of Transportation will
provide a minimum of $35 million per year from the State Transportation Trust Fund.
The Intermodal Logistics Center Infrastructure Support Program will provide will provide $5
million per year for roads, rail, or other methods used to move goods through a seaport.

Read more here: http://www.flgov.com/2012/06/14/governor-scott-signs-legislation-to-prioritize-port-
and-transportation-projects-vital-to-international-trade/

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INDIANA
Governor Mitch Daniels
Ohio River Bridges Project Breaks Ground

In March 2012, Indiana Governor Mitch Daniels partnered with Kentucky Governor Steve Beshear on a
historic agreement to pay for two new bridges across the Ohio River. The project broke ground on
August 30, 2012 and is expected to be completed within six years at a cost $1.5 billion less than
originally projected.

Decades of waiting for greater convenience and quality of life in the metro area will soon be over, but
thats only part of whats ahead: Southern Indiana has tremendous economic prospects and these new
bridges are the key to making them real, said Governor Mitch Daniels.

Through cooperation and determination, we will achieve what this region has talked about but been
unable to deliver for four decades, said Kentucky Governor Steve Beshear.

The governors opened the March meeting of the Louisville and Southern Indiana Bridges Authority by
signing a Memorandum of Understanding (MOU) that outlines each states terms and responsibilities for
financing and building the new bridges.

The two states negotiated a term sheet to form the basis for the historic MOU and the projects financial
plan. Prior to the meeting, each state hosted informational meetings that drew hundreds of private
sector professionals interested in competing to build the project.

Under the bi-state agreement, Indiana will oversee construction of the East End Bridge between Utica
and Prospect, KY. This bridge will link the Lee Hamilton Expressway in Indiana and the Gene Snyder
Freeway in Kentucky, completing a loop around the east end of the greater metropolitan area. The state
plans to use a private sector partner for financing, construction and long-term maintenance of the
bridge.

For complete text of the announcement:
http://www.in.gov/activecalendar/EventList.aspx?fromdate=1/3/2012&todate=9/10/2012&display=Day
&type=public&eventidn=53641&view=EventDetails&information_id=107602

IOWA
Road Use Tax Efficiencies

In January 2012, Gov. Terry E. Branstad announced that the Iowa Department of Transportation (DOT)
has identified $50 million in Road Use Tax Fund (RUTF) efficiencies.

The full report can be found here: https://governor.iowa.gov/wp-content/uploads/2012/01/Road-Use-
Tax-Fund-Efficiency-Report-FINAL1.pdf

I am pleased today to announce, along with Director Trombino, that the state has found $50 million in
in efficiencies that will be put towards the Road Use Tax Fund, said Branstad. In a time when Iowans

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across the state are tightening their belts, state government must spend dollars we receive more
efficiently and streamline operations to maximize every dollar.

Gov. Branstad and Lt. Gov. Reynolds applauded Trombino for his departments efforts in responding so
quickly and thoughtfully to the fiscal and administrative challenges. The governor has directed Trombino
to begin taking necessary steps to implement the efficiency measures outlined in the report.

In November 2011, as a direct response to a recommendation by the Governors Transportation 2020
Citizen Advisory Commission, Gov. Branstad directed the Iowa DOT to convene meetings with the cities
and counties to review the operation, maintenance and improvement of Iowas public roadway system.
The purpose of the meetings was to identify ways to jointly increase efficiency, with a target of
identifying $50 million in efficiency savings could be captured from the $1.2 billion of RUTF monies
provided to the Iowa DOT, cities and counties.

Iowa DOT Director Paul Trombino, III, presented Gov. Branstad with a report detailing 13 programmatic
and partnership efficiencies totaling $50 million in either one-time or annual savings.

The following efficiencies were identified:
Post-Letting project cost. Projected savings: $10 million, annually
Rest Areas and commercial motor vehicle weight stations. Projected savings: $1.5 million,
annually
Uniform Revenue collection. Projected savings: $8 million, annually
Statewide roadside improvements. Projected savings: $1 million, annually
Statewide traffic control devices: Projected savings: $1 million, one-time savings
Right of Way parcels. Projected savings: $1 million, annually
Asset management. Projected savings: $11 million, one-time savings
Highway project concepts. Projected savings: $5 million, one-time, over 5 years
Surface Transportation Program (STP). Projected savings: $5 million, annually
Local jurisdiction partnerships for roadway maintenance: Projected savings: $500,000, annually
Iowa DOT facilities, fleet and printing operations. Projected savings: $500,000, annually
Streamline regulatory permitting process: Projected savings: $500,000 annually
Motor vehicle enforcement. Projected savings: $5 million, annually
Total Annual Savings: $33 million
Total One-Time Savings: $17 million

For the full text of the announcement: https://governor.iowa.gov/2012/01/gov-branstad-announces-
identification-of-50-million-in-road-use-tax-fund-efficiencies/

NEW MEXICO
Governor Susana Martinez
Electronic Construction Permit Review System

On July 24, 2012, Governor Susana Martinez unveiled a state-of-the-art electronic plan review system
that will expedite the approval of construction, design, and architectural plans by the states
Construction Industries Division. Before the new system was put in place, all plans were required to be
sent by mail or hand delivered for manual reviews and approvals at CID offices in Santa Fe,

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Albuquerque, and Las Cruces. The new system allows businesses to submit their proposals online for a
faster review process that will save both time and money.

The new plan review system allows contractors, designers and architects to submit their plans
electronically at any time and from anywhere in the state, country, or world. It also allows plan
reviewers for the Construction Industries Division to electronically mark up, approve or reject those
plans and send them back.

Every day delayed at a construction site translates to lost wages for workers, lost revenues for local
communities and potentially increased costs for contractors, subcontractors and suppliers, said
Governor Martinez. Instead of requiring businesses to wait out a manual review process, this new
system will allow them to instantly submit their proposals for consideration by the states permitting
agency. It will save time and money for homeowners, builders, developers and contractors by speeding
up the permitting and approval process by simply pushing the send button on a computer.
We want to send a loud and clear message to the construction industry in our state and across the
country were open for business and we aim to help them grow and prosper. Rather than standing in
the way of success and economic growth, we should be doing everything we can to promote it,
Governor Martinez continued.

http://governor.state.nm.us/uploads/PressRelease/191a415014634aa89604e0b4790e4768/RLDELECTR
ONICPLAN.pdf

PUERTO RICO
Governor Luis G. Fortuo
Model for Public-Private Partnerships

On Tuesday, October 9, 2012, Governor Fortuo participated in the first PPP Forum on Infrastructure:
Focus on Puerto Rico, where he made the case that infrastructure projects and Public Private
Partnerships (PPPs) are paying off and will continue to yield positive results for Puerto Rico. To date,
Puerto Rico has realized an investment of $11.52 billion in projects throughout the Island that include
current and future PPP projects as well as traditional infrastructure projects completed over the last
three and a half years.

The forum, sponsored by the infrastructure company Abertis and the trade publication TFI News,
gathered senior officials and experts on PPPs to study the Puerto Rico experience as a jurisdiction that
pioneered the development of a successful and replicable model for PPPs in the Americas. Also
participating in the forum were House Transportation and Infrastructure Chairman John Mica, Puerto
Rico Resident Commissioner Pedro Pierluisi and Executive Director of the Public-Private Partnerships
Authority, David Alvarez.

The Puerto Rico Public-Private Partnerships Authority, the agency responsible for planning and
supervising PPP projects, has directed a range of projects that are in various stages of development,
including the long-term lease of the Luis Muoz Marin International Airport, a transaction currently
being evaluated by the Federal Aviation Administration, and the construction of a youth correctional
facility that is in the bidding process.

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In Puerto Rico, the PPP model has been successfully implemented in Schools for the 21st Century, a
public-private partnership dedicated to the modernization of more than 100 public schools with an
investment of $ 756 million. In addition, the Governor highlighted the significant improvement in the
PR-22 and PR-5 roads, which have been operated under a PPP concession since October of last year.

"Establishing partnerships with the private sector is a responsible decision that improves the quality of
life in our communities and results in more jobs and more investment. We are clear on what we want
for Puerto Rico: schools where our children receive the education they deserve to prepare them to
become tomorrow's professionals; roads that facilitate a better quality of life instead of causing a loss of
family time due to congestion; a world-class airport that allows us to open doors to new opportunities;
all leading to a prosperous Puerto Rico with opportunities for all, said the Governor.

Governor Fortuo provided a complete breakdown of infrastructure projects that are completed, PPPs
that are in process and projects slated for future partnerships:

$5.07 billion investment in completed, traditional infrastructure projects:
Renewable Energy projects (including solar and wind) - $2.2 billion
130 sewer and drainage projects - $1.2 billion
Resurfacing of roads in 78 municipalities (over 1,500 kms) - $733 million
Flood control projects - $500 million
Second phase of Route 66 - $160 million
Metro Urbano - $90 million
First stage of Bahia Urbana Project - $85 million
Dos Hermanos Bridge - $45 million
Intersection of PR-181 and PR-17 - $36 million
Mega Bayamn Rotunda - $14 million
First phase of Trocadero / Diverplex - $7 million

$4.75 billion investment in PPP projects in progress:
Luis Munoz Marin Airport - $ 2.6 billion (including construction investment of $245 million in the
first three years)
PR-22 and PR-5 - $ 1.4 billion
Schools for the 21st Century - $ 756 million in 103 schools

$1.69 billion investment slated for future PPP projects:
PR-22 Greenfield - $900 million
Modernization of the police stations - $300 million
Medical Center Renovation - $250 million
New juvenile correctional facilities - $125 million
PR-5 Greenfield - $120 million

Press
Puerto Rico's P3 Projects Set Precedents
By Tonya Chin October 12, 2012
The Bond Buyer

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First the schools, then the roads, and now the airport. In the past two years, Puerto Rico has tackled
more public-private partnership projects than most governments in the United States.

Puerto Ricos flurry of public-private partnerships, or P3s, comes at a time when U.S. infrastructure
needs are enormous and economic growth is lagging.

Supporters say P3s agreements between a public agency and a private entity to complete
infrastructure projects can serve as a cost-saving way for governments to address infrastructure
needs, and there is certainly interest among private investors. Still, the trend has been slow to catch on
in the U.S.

Raj Agrawal, member and head of infrastructure at Kohlberg Kravis Roberts, a global investment firm,
said P3s are an attractive investment that he would like to see more of.

From an infrastructure fund perspective, its a low-risk way to get capital to work, he said last week at
Bloombergs State & Municipal Finance Conference.

And from the municipality [perspective] its really a win-win because its a way to get capital upfront for
reinvestment into the municipality or to the state and to enforce these operating standards, and to
bring the efficiency, speed, and reliability to the public, Agrawal said, pointing to Puerto Ricos P3s as
successful examples.

In December 2010, the Puerto Rico Public-Private Partnerships Authority began its first project, called
Schools for the 21st Century, which aims to provide greatly needed renovations to 100 schools. Less
than two years later, the agency has procured all 100 schools, and has operations underway in more
than 60.

One of the beauties of the P3 is that it allows you to accelerate investment, it allows you to accelerate
all the actual works that happen the construction, maintenance and design and the Schools for the
21st Century has been a clear example for that, said David lvarez, head of Puerto Ricos P3 authority.
He added that they plan to do a second round of another 100 schools.

Last year, Puerto Rico received an upfront payment of $1.436 billion in private investments to upgrade
two of the islands major toll roads.

Autopistas Metropolitanas de Puerto Rico LLC a consortium between Goldman Sachs Infrastructure
Partners II LP and Abertis Infraestructuras will finance, repair, operate and maintain the roads over
the next 40 years.

In its most recent project, Puerto Rico is on track to complete the first U.S. airport P3 by the end of the
year. Under the agreement, Aerostar Airport Holdings LLC will make significant investments to improve
San Juans Luis Munoz Marin International Airport the Caribbeans busiest over a 40-year period.

In the road and airport P3s, the government agencies in charge, the Puerto Rico Highways and
Transportation Authority and the Puerto Rico Ports Authority, will continue to receive a portion of
revenues.

Looking ahead, the authority is working on a P3 to develop a juvenile social-treatment campus complex.

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Juan Carlos Batlle, president of the Government Development Bank of Puerto Rico, which works closely
with the P3 authority, said that based on feedback from industry participants, Puerto Ricos P3s have so
far been successful.

Two of the reasons for success are having a legal framework from which to work and having a
dedicated authority thats 100 percent of the time focused on getting the transaction done, Batlle said
in an interview.

Puerto Ricos legal framework is established in its P3 Act, signed by Gov. Luis Fortuo in 2009 when the
commonwealth was facing fiscal strains and little to nonexistent capacity to make infrastructure
investments. The act set up specific public policy rules and established the P3 authority.

For the full text of the article: http://www.bondbuyer.com/issues/121_198/puerto-rico-public-private-
partnerships-projects-success-1044893-1.html

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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.

Featured states in this chapter include:
K-12 and Higher Education
o ARIZONA Governor Jan Brewer, Arizona Ready Education Report Card
o GEORGIA Governor Nathan Deal, School Choice, School Accountability, Elimination of
LIFO
o INDIANA Governor Mitch Daniels, Signs Credit Creep
o IOWA Governor Terry Branstad, Iowa Teacher and Principal Leadership Symposium
o IOWA Governor Terry Branstad, STEM Website Launched
o IOWA Governor Terry Branstad, STEM hubs from Governors STEM Advisory Council
o IOWA Governor Terry Branstad, First Steps in Education Reform: Competency-Based
Instruction
o LOUISIANA Governor Bobby Jindal, Signs Historic Education Reform Laws
o NEW JERSEY Governor Chris Christie, Signs Monumental Teacher Tenure Reform
o OKLAHOMA Governor Mary Fallin, Elimination of Social Promotion
o OKLAHOMA Governor Mary Fallin, Elimination of Trial de Novo
o OKLAHOMA Governor Mary Fallin, School Performance Report Card
o OKLAHOMA Governor Mary Fallin, Education Oversight Agency Consolidation
o PENNSYLVANIA Governor Tom Corbett, Higher Education Modernization Act
o SOUTH CAROLINA Governor Nikki Haley, Charter School Law
o SOUTH DAKOTA Governor Dennis Daugaard, Investing in Teachers
o TENNESSEE Governor Bill Haslam, Redefines School Accountability
o TENNESSEE Governor Bill Haslam, Enacted Limits on Teacher Collective Bargaining
o UTAH Governor Gary Herbert, Statewide Online Education Program
o VIRGINIA Governor Bob McDonnell, Dual Enrollment, Reading Intervention,
Streamlining Diploma Requirements
o WISCONSIN Governor Scott Walker, Education Reform Bill: Read to Lead, Educator
Effectiveness
o WYOMING Governor Matt Mead, Wyoming Education Accountability Bill
Workforce Development
o GEORGIA Governor Nathan Deal, Go Build Georgia Initiative
o INDIANA Governor Mitch Daniels, Right-to-Work Law
o IOWA Governor Terry Branstad, Skilled Iowa Initiative
o KANSAS Governor Sam Brownback, Career and Technical Education Funding
o OKLAHOMA Governor Mary Fallin, Dept. of Commerce Launches OKJobMatch.com
o PENNSYLVANIA Governor Tom Corbett, Keystone Works
o SOUTH DAKOTA Governor Dennis Daugaard, South Dakotas Workforce Initiative
o TENNESSEE Governor Bill Haslam, Unveils Jobs4TN, a jobs database to connect job
seekers with Tennessee employers

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o UTAH Governor Gary Herbert, Partnership for the Creation of STEM Jobs

Other Resources:
The Heritage Foundation, Continuing the School Choice March: Policies to Promote Family K
12 Education Investment
The Heritage Foundation, Accreditation: Removing the Barrier to Higher Education Reform
Goldwater Institute, The Myth of Education Cuts and Why Money Cant Buy an A+
House Committee on Education and the Workforce, The Impact of Federal Involvement in
Americas Classrooms
U.S. Government Accountability Office, Sustained Coordination among Key Federal Education
Programs Could Enhance State Efforts to Improve Teacher Quality

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K-12 and Higher Education:

ARIZONA
Governor Jan Brewer
Arizona Ready Education Report Card

On July 18, 2012, Governor Jan Brewer launched the Arizona Ready Education Report Card, an online
data tool designed to monitor the States progress in reaching its educational goals. The four chief goals
of Governor Brewers Arizona Ready initiative are:
Goal 1: Increase the percentage of third graders meeting state standards in reading to 94
percent in 2020 from 69 percent in 2010.
Goal 2: Raise the high school graduation rate to at least 93 percent in 2020 from 75 percent in
2010.
Goal 3: Increase the percentage of eighth graders achieving at or above basic on the National
Assessment of Educational Progress (NAEP) to 85 percent in 2020 from 67 percent in 2010.
Goal 4: Double the number of students receiving baccalaureate degrees to 36,000 per year.

The Education Report Card tracks the States progress in achieving the above goals by looking at six
major areas: pre-kindergarten; elementary education; junior high; high school; post-secondary
education; and workforce.

The following criteria are used for measurement in each area:
Pre-kindergarten
o Percentage of families who currently read to children every day, number of children
living in households in poverty, food insecurity, confident families, kindergarten
readiness
Elementary education (K-6)
o AIMS assessment results, kindergarten enrollment information, SAT10 assessment
results, 4
th
grade NAEP assessment results
Junior high (7-8)
o NAEP assessment results, AIMS assessment results, E-caps filled by the end of 8
th
grade,
ACT explore program enrollment, 8
th
grade dropout rate
High school
o HS graduation rate, SAT10 assessment results, AIMS assessment results, HS dropout
rate, GEDs awarded, CTE program outcomes, ACT/SAT assessment numbers, AP exam
results, college remediation rate
Post-secondary education
o Degrees awarded annually, post-secondary graduation rate, community college transfer,
state tuition-household income ratio, year-to-year retention rate, credit accumulation
rate
Workforce
o State-to-nation employment ration, degree production-job requirement match,
unemployment rate, median household income, training program participation,
percentage of adults with associates degree.

For the complete text of the announcement: http://azgovernor.gov/dms/upload/PR-071812-Education-
ReportCard.pdf

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GEORGIA
Governor Nathan Deal
School Choice, School Accountability, Elimination of LIFO

School Choice Passage of Charter School Constitutional Amendment
During the 2012 legislative session, Governor Nathan Deal made charter schools a top priority and
worked with the Georgia General Assembly to ensure passage of a constitutional amendment allowing
the state to authorize new charter schools. This legislation was enacted in response to a Georgia
Supreme Court decision striking down the states ability to approve charter schools.

HR 1162, the charter school constitutional amendment, will be placed on the ballot during the general
election in November 2012. If approved by Georgia voters, it will allow the state to approve and fund
quality charter schools when they are wanted by parents but denied at the local level. The passage of
this constitutional amendment will promote competition and shatter the monopoly that low performing
schools have in portions of the education market.

The ballot proposal contains the following language:
Shall the Constitution of Georgia be amended to allow state or local approval of public charter schools
upon the request of local communities? ( ) YES ( ) NO"

For the full text of this release: http://gov.georgia.gov/press-releases/2012-05-03/deal-signs-state-
charter-schools-bill

Text of the legislation: http://www.legis.ga.gov/Legislation/en-US/display/20112012/HR/1162

School Accountability -- Transparent Grading System for Georgia Schools
In April 2012, Governor Deal signed the School Grading Bill (SB 410). The passage of Senate Bill 410 will
require the publication of annual indicators on each Georgia school and school systems overall
performance, financial efficiency, and school climate. The publication of these numerical (0-100) grades
by the Governors Office of Student Achievement will increase accountability, giving parents and
stakeholders at large a clear picture of a schools successes, as well as areas where improvement is
needed. This legislation will create a transparent accountability system that gives an easily understood
grade based on measurable student achievement.

Text of the legislation: http://www.legis.ga.gov/Legislation/en-US/display/20112012/SB/410

Elimination of Last In, First Out Policies
In May 2012, Governor Deal signed a bill that eliminated the last in, first out teacher retention policies
(SB 184). Senate Bill 184 provides that length of service may not be the primary factor in considering
whether a teacher is retained during a reduction in force. Instead, this bill provides that a teachers
performance, particularly their success in raising student achievement, should be the primary factor in
making teacher retention decisions.

Governor Deal believes that the most important thing we can do for Georgias students is to make
certain we place effective teachers in our classrooms. The elimination of last in, first out policies brings
us one step closer to making this a reality for all students.

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Text of the legislation: http://www.legis.ga.gov/legislation/en-US/Display/20112012/SB/184

INDIANA
Signs Credit Creep Bill

In March 2012, Governor Mitch Daniels signed student-friendly legislation that will make it easier for
Hoosier college students to graduate on time by streamlining college degree credit requirements.

Intended to curb college credit creep, House Enrolled Act 1220 will help Indiana students graduate on
time by eliminating excessive credits required to earn a college degree. The historical standard was 120
credit hours for a bachelors degree (four years of full-time attendance) and 60 credits for an associate
degree (two years of full-time attendance). Credit requirements have steadily increased nationwide over
the years, and nearly 90 percent of Indiana college degree programs exceeded that standard in 2012.

HEA 1220 will require the states colleges and universities to provide justification for degree programs
that exceed the standard through an ongoing audit process that empowers the state to eliminate degree
programs.

At a time when higher education has never been more important, earning a college degree is taking
Hoosiers too long, costing them too much, and leading far too many to pile up debt with no degree,
said Daniels. Indiana took an essential step toward reversing these trends with student-centered
legislation that will make it easier for more Hoosiers to realize the promise of a college degree.

Full text of the release:
http://www.in.gov/activecalendar/EventList.aspx?fromdate=3/16/2012&todate=3/16/2012&display=Da
y&type=public&eventidn=54720&view=EventDetails&information_id=109815

Press
Gov. Daniels signs "credit creep" bill
By Curtis Spicer March 21, 2012
Purdue Exponent

The bill will require higher education institutions across the state to provide justification for the
number of credits needed to graduate with a four-year degree.

Daniels said in this years State of the State speech he wanted to pass this bill to try to slow down the
credit creep of hours required to receive a bachelors degree. The bill grants the power to the Indiana
Commission for Higher Education to review curriculum for the amount of credits required for a
bachelors degree past 120.

If the commission does not approve of the undergraduate degree program, they will have the power to
stop the program. The law goes into effect on July 1 of this year.

Dale Whittaker, vice provost for undergraduate academic affairs, said he hopes the bill will increase the
efficiency of obtaining a four-year degree while reducing the cost.

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By May 2013, we will have to review all of our programs, Whittaker said.

Whittaker said the bill is designed for students to average 15 credits per semester over four years.
However, he said it is still too early to tell which credits have the potential to be eliminated.

Read the full text of the article: http://www.purdueexponent.org/city/article_c2bf6225-f760-5e0e-
ad15-0dbede7f03f2.html

IOWA
Iowa Teacher and Principal Leadership Symposium

On August 3, 2012, Gov. Terry Branstad hosted the Iowa Teacher and Principal Leadership Symposium at
Drake University in Des Moines.

Branstad said the goal of the symposium was to focus on how to organize schools to treat teachers as
leaders, with clearly defined roles and responsibilities.

Symposium speakers and panelists shared their thinking about shared principal and teacher leadership.
The symposium discussed the importance of principal and teacher leadership, an update on the status
quo in Iowa and around the nation, and how top-performing school systems around the globe approach
this issue.

Symposium registration was open to the public with a cross section of Iowans in attendance, including
educators, school board members, business leaders, parents and legislators.

Teacher leadership will be at the heart of our 2013 legislative package because it is critical to give
students the knowledge and skills they need to be well prepared, said Branstad.

For the complete text of the announcement: https://governor.iowa.gov/2012/05/branstad-reynolds-
announce-summer-iowa-teacher-and-principal-leadership-symposium/

For further reading: https://governor.iowa.gov/2012/08/gov-branstad-and-lt-gov-reynoldss-iowa-
teacher-and-principal-leadership-symposium-remarks/

IOWA
STEM Website Launched

On April 3, 2012, the Governors Office and the Iowa Mathematics and Science Education Partnership
(IMSEP) announced the launch of a new Web site which offers Iowans an online one-stop shop for
science, technology, engineering and mathematics (STEM) education and innovation information.

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The Web site, http://www.IowaSTEM.gov offers comprehensive access to essential STEM information
for educators, students, families and children.

The Web site targets a broad range of interests with each page providing detailed information about
education, civic and recreational opportunities and innovation happenings across the state. This page
also serves as the landing page for the Governors STEM Advisory Council, showcasing Iowas targeted
priorities for action planning. Designers considered three main audiences when regarding site content:
students, educators and parents. Students can look for STEM careers, cool Web sites and click through
Iowas community college offerings, as well as public and private colleges and universities.

Parents will like the various resources to invigorate their childrens interest in math, science, engineering
and technology as well as links to STEM events occurring around the state. Educators can browse for
classroom resources and afterschool programming ideas.

The new Web site, IowaSTEM.gov, is a powerful extension of the work of the Governors STEM
Advisory Council, said Jeff Weld, the councils executive director. Our promise to deliver to citizens of
the state a world-class STEM education includes delivery on access to information and opportunity,
which the new site helps us to do.

For complete text of announcement: https://governor.iowa.gov/2012/04/state-launches-new-stem-
web-site/

IOWA
STEM Hubs from Governors STEM Advisory Council

On May 4, 2012, Gov. Terry Branstad announced the selection of six regional network hubs that will
promote science, technology, engineering and math (STEM) education and economic development
across Iowa.

This is the first major initiative of the new Governors STEM Advisory Council, a public-private
partnership whose overarching goal is creating greater student achievement in STEM subjects and a
stronger STEM workforce. Each STEM network hub will work with business, education institutions,
nonprofit groups and others in their region in a way that best fits local needs, interests and resources.

Public and private partners sitting on the local advisory councils are able to work together to design a
STEM program that is uniquely crafted to meet the areas needs. The six regional STEM hubs are
implementing various proposals including: constructing STEM-focused schools for high school juniors
and seniors to take STEM classes in half-day block schedules, splitting the cost of facility construction
and operation between partners, hosting introductory courses on STEM topics for younger students,
building a website to house best-practices for STEM education, increasing public awareness of
supporting STEM through multimedia messaging, and incentivizing Iowa businesses to commit resources
- such as employees and facilities - to STEM education.

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These six regional STEM network hubs will be the driving force offering Iowa youngsters more
opportunities to learn about STEM, which will better prepare them to someday consider STEM careers,
Branstad said. STEM fields are among the fastest-growing, with many jobs that pay well.

For complete text of announcement: https://governor.iowa.gov/2012/05/branstad-reynolds-allen-
announce-six-stem-hubs-in-iowa/

For further reading: https://governor.iowa.gov/2012/08/branstad-reynolds-allen-announce-
governor%e2%80%99s-stem-regional-advisory-boards-appointments/

IOWA
First Steps in Education Reform: Competency-Based Instruction

On May 25, 2012, Gov. Terry Branstad signed into law a bill that provides the essential first steps in
Iowas education reform (Senate File 2284).

The new law creates a task force to do the following:
Conduct a study regarding competency-based instruction standards and options and the
integration of competency-based instruction with the Iowa core curriculum. The preliminary
report, to be submitted by January 15, 2013, should include its finding related to:
o constructing personal learning plans and templates,
o empowering learning through technology,
o developing supports and professional development for educators to transition to a
competency-based system.
Submit its plan, findings, models, and recommendations in a final report to the state board of
education, the governor, and the general assembly by November 15, 2013.

For the full text of the legislation: http://coolice.legis.iowa.gov/Cool-
ICE/default.asp?Category=billinfo&Service=Billbook&menu=false&ga=84&hbill=SF2284

Press
Branstad signs education reform; shakes finger for using one-time money
By Jason Clayworth May 25, 2012
DesMoines Register

That bill, Senate File 2284, will starting in 2017 make parents of third-graders with low literacy skills face
a choice: send their kids to an intensive reading program over the summer, or have them repeat third
grade.

Some other key parts of Branstads education reform like requiring all high school juniors to take a
college entrance exam did not pass in this legislative session. Branstad indicated, as he has in recent
weeks, that his administration will push for further reform in next years legislative session.

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I recognize this is a first step toward improving the quality of education in Iowa, Branstad wrote in his
signing letter. Bold reform is still needed, including strengthening the role of teachers as instructional
leaders with clearly defined roles and responsibilities.

For complete text of press article:
http://blogs.desmoinesregister.com/dmr/index.php/2012/05/25/branstad-signs-education-reform-
shakes-finger-for-using-one-time-money/

LOUISIANA
Governor Bobby Jindal
Signs Historic Education Reform Laws

On April 18, 2012, Governor Bobby Jindal signed three historic education reform bills into law, paving
the way for the creation of one of the nations largest school choice systems, a system where teachers
are rewarded on performance and a coordinated early childhood development structure. The Governor
signed HB 974, HB 976 and SB 581 at Redemptorist Elementary School in Baton Rouge, a private Catholic
school expected to participate in the states expanded scholarship program.

Governor Jindal said, We have a moral imperative to improve the education system for our children,
our state and our country, and these new laws will be a game-changer for Louisiana. Over the last four
years, we've made incredible progress by revamping ethics law, cutting taxes, and growing Louisianas
economy even during a national recession but the single most important thing we can do to ensure
the continued prosperity of our state and our people is to make sure that every child gets a great
education.

HB 974 empowers effective teachers, supports ineffective teachers who want to improve, and
rethinks district management to prioritize kids not adults:
Under this law, more specific performance targets that consider student achievement and
recruiting and retaining effective teachers would be required in the contracts of
superintendents in C, D, and F districts.
The law also requires school boards to delegate to the superintendent and principals hiring,
firing, and teacher placement power and authority to make reductions in force (RIFs) primarily
based on effectiveness.
Additionally, this law gives districts the ability to construct their own salary schedules for new
employees based on what they needsuch as math teachers, teachers to work at high poverty
schools, and performance. Under this law, districts can start rewarding current teachers based
on performance and demand.
The law says layoffs and compensation will now be done based on merit rather than longevity
alone.
The law also makes clear that tenure should be earned and not given automatically. Under this
law, teachers would earn tenure after five years of highly effective ratings.

HB 976 expands choices and empowers parents in four key ways:
First, this law gives parents more levers to affect change by allowing a school to become eligible
for Recovery School District (RSD) intervention after three years of failing if at least 51 percent
of parents at the school sign a petition to do so.

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Second, this law creates three additional pathways to become a charter school and this
legislation streamlines and improves the charter application process for all charter authorizers.
Third, this law gives students access to more courses regardless of zip code. Under current law,
students are generally funded on a per pupil basis to attend one school full time. If the school
they attend does not have the courses they need or want, the student doesnt have many
options for accessing these courses. This law creates a new type of entity that can offer
individual courses to students. All students at public and private schools have access to these
courses, but only certain students are funded.
Fourth, this law expands access to the Scholarship Program to students in C, D, and F schools or
who are entering Kindergarten statewide whose parents make up to 250 percent of the Federal
Poverty level.

SB 581 creates a coordinated early childhood system framework focused on Kindergarten readiness:
There are many full time and part time early childhood educational and health programs that
receive a total of $1.4 billion in state and federal funds per year, plus an additional $150 million
for Head Start. The system is regulatory and focused on inputs, making it difficult for early
childhood providerspublic and private to navigate. There is no measure of quality that gives
parents actionable information.
Under this law, the Board of Elementary and Secondary Education (BESE) would create a
coordinated early childhood system by July 1, 2013 by doing four things:
1. Establishing a definition of Kindergarten readiness and setting performance targets for
children ages 0-2 and academic standards for children ages 3-4 based on Kindergarten
readiness and aligned to the Common Core Standards for K-12.
2. Creating a uniform assessment and accountability system for publicly funded programs
that includes letter grades as clear actionable information for parents.
3. Coordinating with the Department of Children and Family Services and Department of
Health and Hospitals to align licensing standards for childcare prioritiesspecifically
those receiving Child Care Assistance Program public funds and align the Tiered
Quality Improvement Rating System with this new accountability system. This will
streamline and reduce red tape for providers so that dollars flow more easily and the
system is easier to navigate according to a set of aligned program standards.
4. Including Head Start programs, which would have to participate in this new system and
improve the quality of their programs as a condition of their licensing.

For the complete text of the announcement:
http://gov.louisiana.gov/index.cfm?md=newsroom&tmp=detail&catID=2&articleID=3377&navID=12

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NEW JERSEY
Governor Chris Christie
Signs Monumental Teacher Tenure Reform

Marking the first extensive reform of New Jerseys tenure law in over 100 years, in August 2012,
Governor Christie signed the Teacher Effectiveness and Accountability for the Children of New Jersey
(TEACHNJ) Act, a sweeping, bipartisan overhaul of the oldest tenure law in the nation.

The legislation transforms the existing tenure system to now provide powerful tools to identify effective
and ineffective teachers, strengthen the supports available to help all teachers improve their craft, and,
for the first time, tie the acquisition, maintenance, and loss of tenure to a teachers effectiveness in the
classroom. The new law, S-1455, is the result of nearly two years of consistent and vocal advocacy for
real education reform by Governor Christie and good faith, bipartisan cooperation with members of the
legislature, education reform advocates, and stakeholder groups.

This is a historic day for New Jersey and this new tenure law is an important step towards ensuring we
have a great teacher in every classroom said Governor Christie. We are taking a huge leap forward in
providing a quality education and real opportunity to every student in New Jersey. But our work to
develop laws that put students first is not done. Now is the time to build on this record of cooperation
and results to put in place further reforms focused on our students by ending the flawed practice of Last
In, First Out and supporting both differentiated pay and banning forced placements of teachers.

The TEACHNJ bill enacts three measures essential to improving the quality of educators in front of New
Jersey classrooms.

Tenure
The law for the first time in New Jersey history ties the acquisition of tenure to effectiveness rather than
simply on how long an educator has been in the profession. Tenure will now be awarded only after two
years of effective or highly-effective ratings, and will take four years instead of three years to attain,
while providing a year of mentoring for all new teachers. Similarly, revocation of tenure will be
predicated on effectiveness and tenure charges will automatically be brought against teachers and
principals after two consecutive years without a rating of effective or highly-effective, except in
circumstances where an educator has demonstrated modest improvement during that span and may be
granted an additional year to achieve an effective rating. These provisions will help ensure that only
those teachers who are consistently demonstrating success in serving our students remain in the
classroom.

Removing Ineffective Educators
The law also dramatically reduces the time and cost it takes to remove educators who are repeatedly
ineffective in improving student outcomes. Formerly, the process to remove a teacher could take
several years and cost more than $100,000, providing a disincentive for districts to bring tenure charges
against ineffective teachers. Over the past ten years, less than 20 teachers have lost tenure after
charges of inefficiency, which was most closely aligned with the definition of ineffective. Under the
new system, the time would be limited to 105 days from the time the written tenure charges are
received by the Commissioner and is capped at $7,500 per case which will be paid by the state.

Reforming Teacher Evaluations

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Additionally, the law outlines requirements for providing support to help all educators improve by
developing more meaningful evaluation systems and tying the results of those evaluations directly to
professional development. In addition to mandating mentoring in a teachers first year, the new
evaluation systems will provide more meaningful feedback on teacher practice and will incorporate
measures of what matters most how well students are actually performing. Professional development
will be tied to those evaluations, and corrective action plans will be mandatory when a teacher is rated
ineffective or partially ineffective providing the opportunity for improvement before tenure charges
are brought for ineffectiveness.

For the complete text of the announcement:
http://www.state.nj.us/governor/news/news/552012/approved/20120806c.html

OKLAHOMA
Governor Mary Fallin
Elimination of Social Promotion

On May 4, 2011, Governor Fallin signed Senate Bill 346, ending social promotion for students after the
third grade. SB 346 requires students in the third grade to demonstrate proficiency in reading before
moving on to fourth grade. The bill was a key component of Fallins education reform agenda and
mentioned in her State of the State address.

Oklahoma will focus on early intervention so that educators can identify problems and adopt
individualized learning strategies with children. Ending social promotion after the third grade will
prepare children for success in their most critical learning years.

Studies have shown that from kindergarten through the third grade, a child learns to read, but from
fourth grade on, they read to learn, said Fallin. This bill makes sure that every fourth grader has
developed the reading proficiency they need to absorb new academic material and succeed in class.
Sending an illiterate child on to higher grade levels is setting that child up for failure, and I commend the
legislature for sending me a bill that puts a stop to that practice.

For the full text of the announcement:
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=223&article_id=2081

OKLAHOMA
Elimination of Trial de Novo

On April 12, 2011, Governor Fallin signed into law House Bill 1380, an education reform measure that
makes it easier to dismiss underperforming teachers.

Under the current system, tenured teachers who are dismissed by local school boards can appeal that
decision in district court. The appeals process, known as trial de novo, assures that dismissing
underperforming teachers is both a lengthy and expensive process for schools. HB 1380 eliminates trial

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de novo and reforms the system to allow locally elected school boards to let teachers go without a long
and costly appeals process.

Fallin said the bill is the first step in a series of education reform measures she is asking the legislature to
send to her desk. Fallin had earlier identified the elimination of trial de novo as a priority in her State
of the State address.

Education studies have shown that a key factor in student performance is the quality and effectiveness
of our teachers. Eliminating trial de novo will help to ensure that every teacher in the classroom
belongs there. This is a great first step as we continue to look at ways to work with parents, teachers
and administrators to hold our schools accountable, raise the bar in education and increase student
performance.


OKLAHOMA
School Performance Report Card

On May 2, Governor Fallin approved rules establishing an A-F report card system to grade school
performance. The rules were adopted by the State Board of Education in March, based on a law (HB
1456) enacted by the Legislature and signed by Governor Fallin in 2011.

Schools will still be examined for helping their children meet grade-level performance standards, but the
grading system also adds the dimension of allowing a school to show academic growth. A schools grade
also will include factors such as graduation and dropout rates, and attendance rates for elementary
schools.

Perhaps most importantly, the new A-F grading system will replace past systems that were too
complicated for most parents to understand. With this important reform, were empowering everyone
whether school administrators, parents, classroom teachers or citizens to make informed choices
and to identify ways to strengthen and improve all of our schools for the benefit of each student in
Oklahoma.

To ensure that we are providing quality schools that are serving our children well and to identify those
instances where we are not, the state is establishing an A-F grading system to measure school
performance. This new system will allow parents, students, teachers and administrators to quickly and
accurately evaluate the performance of their schools based on data linked to graduation rates, high level
course work, performance on standardized tests, and a variety of other factors. In those instances
where a school receives an unsatisfactory score, the state and community can then work cooperatively
to improve that school and to deliver the kind of high-quality learning environment that our children
need and deserve.

For more information on the A-F grading system: http://ok.gov/sde/f-grading-system

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OKLAHOMA
Education Oversight Agency Consolidation

On May 8, 2012 Governor Fallin signed SB 1797 consolidating existing public education accountability
and teacher preparation entities into a single Office of Educational Quality and Accountability (EQA) in
order to save taxpayer money and streamline existing education initiatives.

By combining the Commission for Teacher Preparation and the Office of Accountability the legislation
will enhance accountability for teacher preparation, education data analysis, and evaluation of
education policy. The new entity will also be responsible for setting cut scores for state tests,
autonomous and independent from the State Department of Education, which will insure checks and
balances in accurately reporting of student achievement progress. The legislation includes a fifteen
percent annual savings mandate.

For the full text of the legislation: http://www.oklegislature.gov/BillInfo.aspx?Bill=SB%201797

PENNSYLVANIA
Governor Tom Corbett
Higher Education Modernization Act

In July 2012, Gov. Tom Corbett signed a series of bills to provide new opportunities for state system
universities. The Higher Education Modernization Act (HEMA) is critical to provide all state system
universities with a level playing field with all other higher education institutions in Pennsylvania.
Specifically, it would allow universities to identify and develop new revenue sources through the
commercialization of research and new product development. The legislation would also permit
institutions to offer applied doctorates, a prerequisite for a number of professional occupations.

The Pennsylvania State System of Higher Education (PASSHE) has changed dramatically over the past
several years. The result is better operational efficiency, leaner universities, and a more focused set of
academic programs aimed at meeting the Commonwealths needs.

Press
Governor Corbett Signs Higher Education Modernization Act
July 10, 2012
NorthcentralPA.com

As the final, important step in an 18-month long process, Governor Tom Corbett has signed into law a
series of bills that will modernize the Pennsylvania State System of Higher Education (PASSHE),
providing the 14 member universities new competitive and cost-savings opportunities, and granting
them the ability to offer advanced degree programs designed to meet the specific needs of employers in
their regions and the Commonwealth.

Passage of the measures known collectively as the Higher Education Modernization Act capped the
most productive legislative session in PASSHEs nearly 30-year history. All of the bills passed
unanimously in both the House and Senate before being signed by the governor.

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Taken together, the measures represent the most significant legislative changes since the State System
was created in 1982, said PASSHE Board of Governors Chairman Guido M. Pichini.
The unanimous, bipartisan support in the Legislature and the decision by Governor Corbett to sign each
of these bills is a strong indication of how important they are to PASSHE, Mr. Pichini said. We are
extremely grateful to everyone who was involved in getting us to this point. In the end, it will be our
students who will benefit the most.

Each of the measures will take effect in about two months.
The legislation will enable PASSHE faculty, staff and students to be more entrepreneurial by providing
them with greater opportunities to work directly with businesses to develop commercial applications for
any inventions they might develop in the course of their research, something they are restricted from
doing now because of their unique status as state employees.
It creates a level playing field, not only with all other institutions of higher education in the
Commonwealth, but also with other public universities throughout the country, said PASSHE Chancellor
Dr. John C. Cavanaugh.

The measure could enhance the universities ability to both recruit and retain faculty and staff while
providing new opportunities for students to engage in research and to participate in internships. It also
could provide new revenue streams for the universities, as more new inventions are taken to market.
All 14 PASSHE universities now will be able to offer applied, or professional, doctorates. Currently, only
Indiana University of Pennsylvania (IUP) can offer doctoral degrees independently. Under the legislation,
IUP will remain the only PASSHE university with the right to award Ph.Ds. or research doctorates.

Read the full text of the article: http://www.northcentralpa.com/feeditem/2012-07-10_governor-
corbett-signs-higher-education-modernization-act

SOUTH CAROLINA
Governor Nikki Haley
Charter School Law

On May 14, 2012, Governor Nikki Haley signed H. 3241, the Charter Schools bill, into law at Greenville
Technical Charter High School.

The Charter School Bill enhances the states existing charter system by:
allowing public or independent institutions of higher learning to sponsor the creation of a
charter school
permitting applicants to seek to form a single gender charter school without regard to the
gender makeup of that proposed charter school
enabling charter school students the opportunity to participate in any extracurricular activities
not offered by the student's charter school which are offered at the resident public school he
would otherwise attend.

It is a great day in South Carolina, said Gov. Haley. We will no longer settle for what we think
education has to be, we will lead in this country on what education should be and that means options,
innovation and creativity.

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For the full text of the release: http://governor.sc.gov/News/May2012/Pages/default.aspx

Press
Gov. Nikki Haley Signs Charter School Bill into Law
By Staff May 15, 2012
The Post and Courier

Gov. Nikki Haley signed a bill into law to strengthen the states 47 public charter schools. The legislation
enables higher- education institutions to authorize charter schools, permits single-gender charter
schools to operate and allows charter school students to participate in extracurricular activities at their
neighborhood schools.

State Education Superintendent Mick Zais called it his chief legislative priority. Charter schools are not a
magic bullet, but they are a tremendous step in the way to providing a personalized and customized
education for every student not a standardized and uniform education for every student, Zais said at
the ceremony at Greenville Technical Charter High School.

South Carolina has outpaced national growth in the number of charter school students served during
the past five years. Nearly 18,000 students statewide attend charter schools. Eight new schools will
open this year, 13 have been submitted for 2013-14, and more than 30 planning groups are working on
applications.

Haley said charter schools increase competition in education, which she said is just as important as
competition in free markets.

Competition is even more needed in education because it lifts the quality of the teachers. It lifts the
options for the students and it allows the parents to see the accountability, Haley said.

The governor said she hopes the bill is just the start of expanding education options in South Carolina,
although she didnt specify what she would like to see next.

This is just the first step of what education can look like in South Carolina, Haley said.

Read the full text of the article:
http://www.postandcourier.com/article/20120515/PC16/120519503/1177

SOUTH DAKOTA
Governor Dennis Daugaard
Investing in Teachers

On March 13, 2012, Gov. Dennis Daugaard signed HB1234, legislation that rewards teachers for
excellence and attracts talented young people into teaching disciplines in critical areas of education.

The Governor announced his South Dakota Investing in Teachers initiative in his Jan. 10 State of the
State address.

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This law will invest $15 million a year in great teachers, because great teachers are the key to student
achievement, Gov. Daugaard said. The law is the product of a lengthy discussion in the Legislature,
and lots of input from educators and constituents, and I thank everyone involved for making this a
strong piece of legislation.

HB1234 includes several components:

The Top Teacher Rewards Program allows local school districts to create their own plans to
reward teachers based upon student achievement, teacher leadership, or local critical needs.
One option schools can use is the original proposal to give $5,000 bonuses to the top 20 percent
of teachers. Districts will receive approximately $1,000 per teacher to set up their local plans,
and can opt out entirely if they choose. The program begins in the 2014-15 school year.
The Critical Needs Scholarship Program will create 100 scholarships a year for teaching-
students in their junior and senior years who agree to teach in a critical needs teaching field.
Critical needs will be determined based upon a survey of local school districts. The scholarships
will equate to full tuition and fees at a state university, and recipients will be required to teach
in a critical needs field for five years in South Dakota after graduation. The program begins in
the 2013-14 school year.
The Math and Science Teacher Incentive Program will reward the states best math and
science teachers those who are evaluated as distinguished or proficient on the state
evaluation system with an annual bonus of $2,500. This program begins in the 2014-15 school
year.
The law removes the state mandate that requires districts to grant continuing contract, or
tenure, to teachers. This takes effect on July 1, 2016, and teachers who receive continuing
contracts prior to that date will not lose them. Local districts will still be allowed to extend
tenure if they choose, but it will no longer be required by the state.
The law creates a new statewide evaluation system for teachers and principals, as one
component of the states new school accountability system. The state is replacing No Child Left
Behind with a state-created system that will create better student assessments and measure
schools on a variety of factors.
Several advisory committees are created to allow for more input from educators as these
programs are implemented over the next three school years.

Once fully implemented, these proposals will be funded by the state at a level of $15 million a year, on
top of regular formula funding for K-12 education.

I support regular formula funding increases for schools, Gov. Daugaard said. But I also believe that
the state can make additional, targeted investments in new ideas designed to promote student
achievement. The state will continue to measure the success of our schools by the results they
produce.

For the complete text of the announcement: http://news.sd.gov/newsitem.aspx?id=12642

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TENNESSEE
Redefines School Accountability

On May 10, 2012, Tennessee Gov. Bill Haslam signed the piece of his 2012 legislative agenda that
redefines school accountability in the state and waives Tennessee from portions of the federal No Child
Left Behind law.

Surrounded by educators from across the state and students, Haslam also announced more than $37
million in federal grants for three school districts to assist in their efforts to turn around low-performing
schools. The money given to each district can be used to fund a variety of practices, including extended
learning time for students and a greater use of technology in the classroom.

The waiver was approved in January by the U.S. Department of Education and required changes to
Tennessee law, which were approved by the General Assembly earlier this spring. The federal School
Improvement Grants fund Innovation Zones: small clusters of schools, as described in the waiver, where
innovative educational systems can be developed, implemented, assessed, and shared.

The legislation, HB 2346/SB 2208, replaces the Adequate Yearly Progress (AYP) standards and
designations for LEAs and schools and establishes a state accountability system requiring, in aggregate,
significant growth in student achievement in core subjects and the reduction of the achievement gap
between student subgroups.

Complementing the Innovation Zone funds, the Charter School Growth Fund also announced a $6.75
million investment in two Tennessee-founded charter school organizations to help serve students in the
highest-need neighborhoods in Memphis and Nashville. Made up of federal money and private
donations, the fund is giving $3.25 million to Nashvilles LEAD Public Schools, which will expand their K-
12 program to five campuses and ultimately serving more than 4,700 students. They also are investing
$3.5 million in Gestalt, which is located in Memphis. That investment will take Gestalt from two schools
to 10 by 2016, ultimately serving 5,300 students.

For the full text of the announcement: https://news.tn.gov/node/8803

TENNESSEE
Enacted Limits on Teacher Collective Bargaining

In June 2011, Governor Bill Haslam signed Senate Bill 113, a crucial piece of education reform legislation
that placed limits on teacher collective bargaining.

The bill bars teachers unions from negotiating with local boards of education concerning the terms or
conditions of professional service and provides for a policy manual that would outline how every local
school board will set policies on salaries, wages, benefits, including insurance and retirement benefits,
leaves of absence, student discipline procedures and working conditions for teachers.

Read the full text of the bill: http://legiscan.com/gaits/text/513054

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UTAH
Statewide Online Education Program

On March 30, 2011, Governor Gary Herbert signed the Statewide Online Education Program (SB 65) into
law. The Statewide Online Education Program was created to enable eligible students to earn high
school graduation credit through the completion of publicly funded online courses.

The bill does the following:

Allows High School students to enroll in pre-approved online courses
Allocates $250,000 to the Statewide Online Education Program
Forwards an amount equal to 1/8 of per pupil revenues for each credit earned to the course
provider deducted from allocated funds from the students primary LEA
Courses available through Utah Electronic High School websites

Read the full text of the bill: http://le.utah.gov/~2011/bills/sbillenr/SB0065.pdf

VIRGINIA
Dual Enrollment, Reading Intervention, Streamlining Diploma Requirements

In 2012, Governor Bob McDonnell advanced his Opportunity to Learn K-12 agenda by adopting the
following bills and funding initiatives.

Dual Enrollment
In April 2012, Governor McDonnell signed HB 1184, which allows high school students to complete an
advanced degree while still in high school. The legislation established written agreements with a Virginia
Community College specifying the pathway for students to complete an associate's degree or a one-year
Uniform Certificate of General Studies from a Virginia Community College concurrent with a high school
diploma.

For the full text of the legislation: http://leg1.state.va.us/cgi-bin/legp504.exe?121+sum+HB1184

Reading Intervention
In May 2012, Governor McDonnell signed HB 1181, a bill relating third grade reading intervention.
HB1181 requires local school divisions to provide reading intervention services to 100 percent of eligible
students in grade three prior to promotion to grade four. Previously, funding had been provided to serve
25 percent of eligible third-grade students. Student eligible students demonstrate deficiencies based on
their individual performance on the Standards of Learning reading test or any reading diagnostic test
that meets criteria established by the Department of Education. The local school division, at its
discretion, shall provide such intervention before promotion to grade four.

For the full text of the legislation: http://leg1.state.va.us/cgi-
bin/legp504.exe?121+cab+SC20223HB1181+UCHB2

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Streamlining Diploma Requirements
In May 2012, Virginia Governor Bob McDonnell signed SB 489, which reformed high school diploma
options by reducing the number of diploma options and increasing diploma requirements to ensure
college or career readiness for all students. SB 489 directs the Board of Education to modify the credits
necessary for a student to earn a standard or an advanced studies diploma. The advanced studies
diploma will be the recommended diploma for students pursuing baccalaureate study. The standard
diploma will include a concentration in career and technical education and a requirement to earn a
career and technical education credential or passing a state licensure examination, national
occupational competency assessment or the Virginia workplace readiness skills assessment. Standard or
advanced studies diploma will require the successful completion of one virtual course. The modified
standard diploma is eliminated, but the Board will make provisions in regulation for students with
disabilities to earn a standard diploma. New regulations to implement the provisions of this act will be
effective within 280 days of April 5, 2012.

For the full text of the legislation: http://leg1.state.va.us/cgi-bin/legp504.exe?121+sum+SB489

The 2012 "Opportunity to Learn" agenda also includes funding initiatives in the governor's 2012-2014
biennial budget that will:
Provide additional funding to support the Early Intervention and Reading Initiative
Require local school divisions to include in their existing reports to the Department of Education
how their financial resources are being allocated
Provide $2 million in additional funding in FY 13 and FY14 for the Communities in Schools
program to expand to Hampton Roads, Petersburg, southwest Virginia, northern Virginia, and
Danville. Expansion would also include adding regional field support personnel, on-going state-
wide training and technical assistance, and annual total quality system standards reviews.
Provide $1.8 million in funding in FY 13 and FY14 for 10th graders to take the PSAT and partner
with College Board to conduct statewide workshops on using the results to increase AP
participation and SAT scores.
Provide $770, 276 for the expansion of the PluggedInVA model to all 8 superintendents' regions
in the state. PluggedInVA involves enrolling adults both in local GED programs in divisions and
also in industry certification programs at the community colleges.
Provide $80,000 in FY13 to provide planning and first year start-up funding in FY13 for Health
Sciences academies.
Provide $135,794 for the Positive Youth Development Academy pilot program for rising 9th and
10th graders in selected regions of the Commonwealth
Fund a request for proposals to develop an elementary education preK-6 approved program
with a major in mathematics, sciences, or integrated sciences and mathematics and
middle/secondary approved programs focusing on the preparation of mathematics and science
teachers. The programs must be led by public or private colleges or universities, including
collaboration of local school divisions, with preference to a consortia model. Programs will
provide support to prospective teachers in completing a program within a four-year
baccalaureate degree, offer tuition incentives, and promote distribution of high quality teachers
across the Commonwealth.
Provide $600,000 in funding for incentive awards for teachers in STEM areas. A new teacher
with an endorsement in mathematics, physics, or technology education assigned to a teaching
position in a corresponding STEM subject area is eligible to receive a $5,000 initial incentive
award after the completion of the first year of teaching with a satisfactory performance
evaluation and a signed contract for the following school year. An additional $1,000 incentive

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award may be granted for each year the eligible teacher receives a satisfactory evaluation and
teaches a STEM subject for up to three years (maximum incentive award is $8,000). Funding will
be awarded on a first-come, first-served basis with preference to teachers assigned to teach in
hard-to-staff schools or schools in improvement.

For the full text of the release: http://www.governor.virginia.gov/news/viewRelease.cfm?id=1076

WISCONSIN
Governor Scott Walker
Education Reform Bill: Read to Lead, Educator Effectiveness

In April 2012, Governor Scott Walker signed Senate Bill 461 which makes the following changes to
statutes relating to education reform:

Read to Lead
Creates the Read to Lead Development Council in the Office of the Governor. The council
consists of the Governor, the State Superintendent of Public Instruction, four legislators, and the
members representing various groups appointed by the Governor and serving at his or her
pleasure.
Creates the Read to Lead Development Fund for grants to support literacy and early childhood
development programs. The fund consists of all gifts, grants, bequests, and other contributions
made to the fund. The Read to Lead Development Council must make recommendations to the
Governor and the State Superintendent of Public Instruction regarding recipients of grants. The
amount of each grant awarded is determined jointly by the Governor and the State
Superintendent.

Teacher Preparation Programs
Requires the Department of Public Instruction (DPI) to work in consultation with the Governors
office, the University of Wisconsin System, chairpersons and ranking members of the Senate and
Assembly education committees, and the Wisconsin Association of Independent Colleges and
Universities to determine how the performance of individuals who have recently completed
teacher education programs will be used to evaluate the teacher education programs, including
by defining recent graduate and identifying measures of performance and measures to assess
an individuals performance.
Requires each teacher education program located in Wisconsin to annually provide DPI with a
list of individuals who have completed the program, and their dates of program completion,
from each term or semester of the programs most recently completed academic year. The Act
requires DPI to include this information about graduates of teacher education programs in the
statewide student information system.
Requires DPI to develop a system through which information about teacher performance and
the evaluation of teacher education programs will be made available to the public. The Act
requires DPI, beginning in the 2013-14 school year, to report for each teacher education
program the rate of passage on first attempt of recent graduates of the program on
examinations administered for licensure as a teacher and as an alternative education program
teacher, and any other information recommended by DPI in consultation with the entities
above, on the system developed as required in the Act.

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Educator Effectiveness
Requires DPI to develop an educator effectiveness evaluation system (state system) and to
develop an equivalency process aligned with the state system (equivalency process) to assist
school districts in the evaluation of the performance of teachers and principals in the district.
Under the state system, 50 percent of the total evaluation score assigned to a teacher or
principal must be based on measures of student performance, and 50 percent of the total
evaluation score must be based upon the extent to which the teachers or principals practice
meets established standards.
The equivalency process must be based upon the same interstate standards as the state system
and must evaluate a teacher with reference to the following four domains: (a) planning and
preparation; (b) the classroom environment; (c) instruction; and (d) professional responsibilities
and development.
Specifies that teachers and principals evaluated under both the state system and the
equivalency process must be placed in one of multiple performance categories. Each school
district and independent charter school must begin evaluating teachers and principals using
either the state system or the equivalency process in the 2014-15 school year.

Assessments of Reading Readiness
Requires each school board and each independent charter school annually to assess all pupils
enrolled in kindergarten for reading readiness beginning in the 2012-13 school year. The Act
specifies that the school board or charter school must use the appropriate, valid, and reliable
assessment of literacy fundamentals selected by DPI and requires DPI to ensure that the
assessment evaluates whether a pupil possesses phonemic awareness and letter sound
knowledge. The school board or charter school must provide a pupil whose assessment
indicates that he or she is at risk of reading difficulty with interventions or remedial reading
services that are scientifically based.
Requires a school board or independent charter school to report the results of a pupils reading
assessment to the pupils parent or guardian.

For more details on this initiative: https://docs.legis.wisconsin.gov/2011/related/lcactmemo/sb461.pdf

Press
Scott Walker's Education Victory
By Kimberley A. Strassel June 7, 2012
Wall Street Journal

Overhauling a state government, facing down a union machine, beating back a recallScott Walker
hasn't exactly been a slacker. Yet hidden among the Wisconsin governor's reforms has been another
significant success: He's helped change the education paradigm.

Conservatives have pushed education reform for decades, with notable successes. But the debate had
also become predictable. Republicans argued for systemic change; Democrats argued for more money.
The fight was largely confined to the education sphere, with conservatives arguing education reform for
education's sake.

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The Walker breakthrough was to integrate education into the broader fiscal and structural dispute. His
argument: Wisconsin is broke. We can continue to pour money into the public-union monopoly, forcing
us to cut further from priorities (namely, education). Or we can enact broad structural changes, the
savings from which we can use to better our state (notably, schools).

"The argument was two-dimensional previously," says Scott Jensen, senior adviser at the American
Federation for Children. Mr. Walker, "by undoing the bigger state infrastructure that locked in
inefficiencies, [has] freed up additional funds to flow to the classroom, all without asking for more from
taxpayers."

Unions and liberals have argued that education "reform" is really about starving public schools of money
and resources. Mr. Walker's budget victory has shown that structural government reform is the surest
way to put more dollars into kids.

It's resonating because taxpayers see it working. In addition to limiting collective bargaining, the Walker
reforms let schools competitively bid on health insurance, asked employees to contribute to health and
pension plans, and introduced merit pay. The Legislative Fiscal Bureau estimates the pension provision
alone will save schools $600 million over two years, while competitive health bidding is already saving
$220 per student per year.

Places like the New Berlin school district, with its 4,700 students, have already reduced health-care costs
by $2.3 million, retirement costs by $1.25 million and other liabilities by $15 million. The district hired
new staff, reduced class sizes, and added programs. The Shorewood district saved $537,000 simply by
bidding out its health contract (previously run by a union outfit), and also reduced insurance premiums
for its teachers.

Read the full text of this article:
http://online.wsj.com/article/SB10001424052702303753904577452862561051838.html

WYOMING
Governor Matt Mead
Wyoming Education Accountability Bill

On March 21, 2012, Governor Matt Mead signed the Education Accountability Bill. The bill, implemented
in phases, moves Wyoming schools forward education accountability. Under Phase 1, each school will
receive one of four overall school performance ratings: Exceeding, Meeting, Partially Meeting, or Not
Meeting expectations. In Phase 2, each individual educator will be rated as Highly Effective, Effective, or
Ineffective. Lastly, the legislation calls for the state to apply to waive NCLB requirements.

For more information: http://www.wyoea.org/home/539.htm

Press
Agreement reached on Wyoming education reform bill
March 8, 2012
AP

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Senate File 57, which now goes to Gov. Matt Mead for his approval, was one of the last bills acted on by
the Legislature before it adjourned Thursday evening

The bill details the tests Wyoming students will be taking through high school. It sets up a process for
measuring the academic progress of students in reading, math, science, writing and language over their
school careers, and for evaluating whether the students are meeting academic expectations and are
ready for college and careers after high school.

The legislation creates a committee made up of educators, school administrators, parents and others to
decide what standards schools must meet to be evaluated on whether they are doing a good job of
educating students.

Schools will be ranked on such things as student scores on annual statewide assessments and college
entrance exams and on graduation rates. Superintendents and principals would be held accountable for
school performance.

The state Education Department would intervene to help individual schools that fail to meet
performance standards. If a school fails to show improvement for two consecutive years, the principal
may be dismissed.

The conference committee resolved differences over how much testing for academic assessment
purposes should be done in kindergarten through second grade and how often, whether high school
seniors must be tested for academic growth, whether some schools should be exempt from a mandated
16-1 student-teacher ratio and whether schools must report to the state the progress their ninth
graders are making toward graduation.

The lawmakers agreed to one assessment in first grade and two tests a year in second through eighth
grades. High school seniors will be required to take an assessment in the spring of their final year
although it will be a shorter version of the ACT, which all 11th-graders are required to take.

The schools that are judged to be the best in educating students will be exempt from the 16-1 ratio, and
schools must report the graduation credits achieved by ninth graders.

Read the full text of the article: http://billingsgazette.com/news/state-and-regional/wyoming/wyoming-
education-reform-bill-grounded-at-capitol/article_4d8729a4-c50d-5c6f-bbee-4b621122d978.html

Workforce Development:

GEORGIA
Go Build Georgia Initiative

Go Build Georgia is a public/private partnership between state government, the Technical College
System, apprenticeship programs and industry. In 2012, the campaign kicked off with a 13-stop tour
aimed at raising awareness about the issue and job opportunities.

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The Georgia Governors Office of Workforce Development designed the Go Build Georgia program to
educate young people on the value of learning a trade. The Go Build Initiative will do this through a
public awareness effort, public relations and social media campaign. A high school student can work
toward a technical college education or apprenticeship that can prepare them for the skilled trades. The
University System of Georgia also offers many programs to lead students to a successful career in the
skilled trades. Go Build helps students plan a path thats well-suited to their skills and goals.

For more information on Go Build Georgia: http://www.gobuildgeorgia.com/

INDIANA
Right-to-Work Law

On February 1, 2012, Governor Mitch Daniels signed HEA 1001, making Indiana the first state in the Rust
Belt to bar unions from requiring all members to pay union fees. Upon adoption of the right-to-work
law, Indiana became the 23
rd
right-to-work state in the nation.

What HEA 1001 does:
Makes it a Class A misdemeanor to require an individual to: (1) become or remain a member of
a labor organization; (2) pay dues, fees, or other charges to a labor organization; or (3) pay to a
charity or another third party an amount that represents dues, fees, or other charges required
of members of a labor organization; as a condition of employment or continuation of
employment.
Provides that the Indiana department of labor may investigate and issue administrative orders
for violations or threatened violations.

What HEA 1001 does not do:
HEA 1001 does not apply to federal employees, employees subject to certain federal laws,
certain employees over whom the federal government has jurisdiction, state employees, and
employees of a political subdivision.
HEA 1001 does not apply to the extent it is in conflict with or preempted by federal law.
The law is not intended to change or affect any other law concerning collective bargaining or
collective bargaining agreements in the building and construction industry.

Governor Mitch Daniels issued this statement about HEA 1001:

Seven years of evidence and experience ultimately demonstrated that Indiana did need a right-to-work
law to capture jobs for which, despite our highly rated business climate, we are not currently being
considered.

This law wont be a magic answer but well be far better off with it. I respect those who have objected
but they have alarmed themselves unnecessarily: no ones wages will go down, no ones benefits will be
reduced, and the right to organize and bargain collectively is untouched and intact.

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The only change will be a positive one. Indiana will improve still further its recently earned reputation as
one of Americas best places to do business, and we will see more jobs and opportunity for our young
people and for all those looking for a better life.

Read the full text of the legislation here:
http://www.in.gov/apps/lsa/session/billwatch/billinfo?year=2012&session=1&request=getBill&docno=1
001

IOWA
Skilled Iowa Initiative

The Skilled Iowa Initiative is a public-private partnership that will utilize the National Career Readiness
Certificate (NCRC), a tool that assists both job seekers and employers by determining a baseline of skills
and providing resources to improve skills. The testing will be readily available and will be of no cost to
those looking to add the certificate to their resume and more accurately display their skills to current
and potential employers. Private sector entities have pledged to support the initiative through
contributions.

Skilled Iowa will work with employers across the state to encourage the hiring of certificate holders as a
way to reduce turn over and on the job training. The initiative will create Skilled Iowa Communities,
creating a workforce that is Work Keys certified to work in a variety of industries. Along with these
communities, an internship program will be developed to create on-the-job connections between Iowa
employers and individuals currently receiving unemployment benefits.

The overall goal of the program is to implement Skilled Iowa Communities as an economic development
strategy that provides a framework for validating skilled Iowa workers who are ready to fill current and
future jobs. Additional goals essential to the programs success include:
Increase the number of employers/businesses that support and recognize the Career Readiness
Certificate.
Increase the number of Iowa job seekers that include the Career Readiness Certificate in their
portfolio/rsum.
Make NCRC related training available to all Iowans and employers.
Encourage Iowa employers to offer the internship program to qualified participants.
Create unique on the job training environments for Iowans.

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

KANSAS
Governor Sam Brownback
Career and Technical Education Funding

During the 2012 legislative session, Kansas Governor Sam Brownback authored and signed Senate Bill
155 which improved career and technical education funding to help Kansas meet the workforce needs of
growing businesses.

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The bill established a new paradigm for funding career and technical education by providing free tuition
to Kansas high school students who take technical education courses and increasing the number of
students graduating from high school with industry-demanded professional certifications.

SB 155 created an incentive program that encourages school districts to increase the number of
students exiting high school with an industry-recognized credential in key occupations by providing a
$1,000 per student award to the sending high school for each student earning this certification. These
occupations are identified by the Kansas Secretary of Labor, in consultation with the Board of Regents
and the Board of Education, as those in highest need of additional skilled workers.

The Career and Technology Act provides funding in the following areas:

$8.75 million for Student tuition in career technical programs
$1.5 million for high schools who increase the number of students earning an industry-
recognized credential in key occupations
$50,000 in marketing to increase student participation
School transportation costs to transport high school students to their local community or
technical college

Career and Technical Education programs are a great way for high school students in Kansas to obtain
real-world knowledge and skills that will help them immediately whether thats to begin their career
after high school or to get a job that will help pay their way through college, Governor Brownback
said. As business demand continues to increase, we must work to reverse the trend of the decreasing
supply of CTE certified workers. We have seen the number of high school students enrolled in technical
education programs drop by nearly 20,000 and the number of students earning a certificate by nearly 33
percent.

For the full text of the release: http://www.kansasregents.org/governors_cte_initiative

Kansas Hearing on Excellence in Education Act:
http://www.kslegislature.org/li/b2011_12/committees/misc/ctte_h_ed_bdgt_1_20120126_01_other.p
df

OKLAHOMA
Dept. of Commerce Launches OKJobMatch.com

In 2012, the Oklahoma Department of Commerce, in conjunction with the Governors Council for
Workforce and Economic Development, launched OKJobMatch.com to help match job seekers with
employers.

OKJobMatch.com is a new, free website that uses an easy to understand question-and-answer format to
help job seekers create a resume, post their resume and connect with employers across Oklahoma.
Whether youre unemployed, underemployed or looking for a career change, OKJobMatch.com can
help.

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OKJobMatch.com searches more than 16,000 websites, 1,200 of which are in Oklahoma, matching the
right employees with the right jobs in all of Oklahomas 77 counties and neighboring states. Job seekers
can upload their own resume, or, use the resume builder that gathers information about training, job
skills and work history and builds a resume that maximizes the users career options.

OKJobMatch.com allows veterans the ability to translate the skills and knowledge they gained serving
our country to civilian job descriptions. The website also identifies industry-recognized certifications that
are in high demand and provides veterans with links to partner agencies that can provide more detailed
job placement assistance.

Read the full text of the announcement: http://okcommerce.gov/news-container/oklahoma-
department-of-commerce-launches-okjobmatch.com/

PENNSYLVANIA
Keystone Works

On July 5, 2012 Governor Tom Corbett signed Act 107 of 2012 establishing the Keystone Works Program.
The Keystone Works Program provides employer driven training opportunities for unemployed
Pennsylvania workers.

Through this program, employers are offered an incentive if the participant successfully completes the
training program and is hired. The program allows claimants collecting regular state unemployment
compensation benefits to voluntarily participate in training opportunities with businesses looking to hire
in high priority occupations (HPOs). HPOs are occupations identified as in demand, with higher skill
needs, that are likely to produce family-sustaining wages.

The maximum length of training is eight weeks, up to 24 hours per week. Businesses seeking to
participate in the program submit position requirements and a training plan for approval.
Unemployment compensation claimants are matched with businesses that are appropriate based on
their skill level, prior work experience and interests. Businesses participating in the program will be
reimbursed for any increase in workers compensation premium due to the addition of a trainee to an
existing workers compensation policy.

Upon completion of training, a business that hires a claimant into the job opening being trained for is
eligible to receive incentive payments of $375 for every four consecutive work weeks the claimant
remains employed at least 35 hours per week. These incentive payments are available for up to four
consecutive periods of four consecutive work weeks for a maximum of $1,500 in total incentive
payments per claimant.

Keystone Works is a means to get unemployed Pennsylvanians back to work while strengthening the
workforce through job specific training. Businesses are able to find skilled workers to meet their needs
while limiting up front risk and cost associated with hiring a new employee. Unemployment
compensation claimants are able to obtain occupational skills to add to their resume, maintain a
connection to the workforce, and have opportunity for full-time employment.

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For full language and text of Act 107
http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2011&sessIn
d=0&billBody=H&billTyp=B&billNbr=1539&pn=3790

SOUTH DAKOTA
South Dakota Workforce Initiative

In March 2012, Governor Daugaard launched a workforce training initiative called South Dakota Wins.
The initiative is designed to bring together government, education and business leaders to capitalize on
South Dakota's economic potential. The components of this program will help South Dakota develop
and attract a stronger, more educated workforce, positioning us well to compete in an ever changing a
dynamic global economy.

The South Dakota WINS program is comprised of four separate initiatives:
1. Preparing students through an education system that focuses on achievement by paying a
premium for teachers in math and science; expanding the states educational information web
portal; increasing access to hands-on career cluster camps in engineering, IT, skilled trades, and
other high-demand areas; and offering a more personalized education to those who need
remediation or are ready for advanced placement or college courses.
2. Training workers for skilled jobs that exist in the state by providing National Career Readiness
Certificates for capable workers; offering a Welding and Manufacturing Technology training
program at Mitchell Technical Institute (MTI); teaching inmates the valuable skill of welding at
the low medium security prison in Springfield; and allocating just under $1 Million of Community
Development Block Grant federal dollars to be available for workforce training needs.
3. Promoting rural health occupations by increasing the USD Medical School class size by four
students per year; implementing a rural track to provide selected third-year medical students
with an extended experience in rural communities; increasing the physician assistant program
class size by five students and converting five of the current non-resident slots in each class to
resident slots; and offering an incentive payment in return for three continuous years of practice
in an eligible rural community.
4. Bringing in New South Dakotans by creating Dakota Roots, a job search website, to match
participants with career openings available from the state's leading businesses; working with a
private company specializing in placement and relocation services to add 1,000 workers; and
helping communities conduct housing surveys so that they may better develop and market
housing options and investment opportunities in their communities.

For more information on the South Dakota WINS initiative: http://www.southdakotawins.com/

Press
South Dakota Wins
By Angela Kennecke March 13, 2012
Keloland

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The Governor's Office of Economic Development has started a new program called South Dakota Wins
to train and recruit people for various fields with openings.

South Dakota Wins is making stops in major cities throughout the state and Tuesday, companies in Sioux
Falls got the chance to hear the details.

The South Dakota Wins program says filling future jobs in the state begins in the classroom and it's
working with the Department of Education on curriculum to train future workers today.

"And there's a multitude of jobs available. Our economy is continuing to diversify and opportunities
that weren't here 10 or 15 years ago are here today- so getting our students connected to those
opportunities and helping them understand what those are," Chris Maxwell from the Governor's Office
of Economic Development said.

Training workers for jobs that are plentiful, like welders and machinists, is another key part of the plan.

Filling the need for rural health care workers is a big challenge. That's why the state is opening up more
positions in its medical schools and offering more tuition reimbursement.

Finally, the state has partnered with Manpower Recruiters in a $5 million contract to fill a thousand jobs
in the state.

"The recruitment piece, the new South Dakotans piece has been referred to as a thousand South
Dakotans at a time and frankly, thats a drop in the bucket. There's a huge opportunity to grow.
Aberdeen has a thousand workers they need to fill that doesn't take into account the rest of the state
and opportunities that are out there," Maxwell said.

Maxwell says if the SD Wins program can fill a thousand jobs that's an additional tax base of $5 to $6
million a year for the state. South Dakota Wins will be making a presentation in Watertown next month.

Read the full text of the article: http://www.keloland.com/NewsDetail6162.cfm?Id=0,129028

TENNESSEE
Unveils Jobs4TN, a jobs database to connect job seekers with Tennessee employers

On April 21, 2011, Governor Bill Haslam and ECD Commissioner Bill Hagerty announced the Jobs4TN
plan, which lays out the administrations economic development strategy resulting from a top-to-
bottom review of the department. The governors Jobs4TN plan focuses on:
Prioritizing the strategic recruitment of target industries;
Assisting existing Tennessee businesses in expansions and remaining competitive;
Supporting regional and rural economic development strategies;
As well as investing in innovation and reducing business regulation.

The plan includes four key strategies:

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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. ECD will select regional directors to run each jobs base camp.

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.

Investing in innovation: Haslam has 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. After performing a cost-benefit analysis of regulations identified as burdensome, ECD will
present recommendations to the governor and the states congressional delegation in fall 2011.

My top priority is for Tennessee to be the No. 1 location in the Southeast for high-quality jobs, Haslam
said. Our Jobs4TN plan is a blueprint for doing just that. By leveraging our existing assets in each region,
we will be able to attract new businesses to the state while helping our existing businesses expand and
remain competitive. We will also be making significant investments in innovation to position Tennessee
as a national leader well into the future.

To implement the plan, ECD will undergo a significant reorganization that will result in a new senior
leadership team as well as a 35 percent reduction in staff.

Read the full text of the announcement: http://www.tn.gov/ecd/pdf/Jobs4TN_Press%20Release.pdf

Please see Chapter 6 of this report for more information on Governor Bill Haslams initiative: Transform
State Government to Recruit, Retain and Reward Employees.

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UTAH
Partnership for the Creation of STEM Jobs

Governor Gary Herbert joined with Prosperity 2020 business and education partners on September 6,
2012, to launch a partnership that will establish the greater Salt Lake area as a top ten center for
technology jobs and businesses.

Great jobs and businesses start with well educated workers, the governor said. By bringing industry
and education together we start recruiting tomorrows scientists in todays classrooms. Utah technology
jobs pay 57 percent more than the states average wage. This improves individual lives and the
economy.

The goal to be among the top ten tech and science centers in the US will take a concerted statewide
effort and will involve educators and industry. The governor said it will start with an unprecedented
statewide planning process to identify and build on current successes and create greater collaboration in
Science Technology, Engineering and Math (STEM) education.

Prosperity 2020 is the largest coalition of business leaders ever assembled to improve Utahs
educational outcomes through investment, innovation and accountability. Prosperity 2020 has laid out
the following key goals:

66 percent of Utahns will have post-secondary certificates and degrees by 2020
90 percent of Utah elementary students will be proficient in reading and math
the greater Salt Lake area will be a top ten center in technology jobs and businesses

The statewide STEM education and workforce partnership is a collaborative project of the Governors
Office of Economic Development, the Utah System of Higher Education, and the Utah State Office of
Education. It is a direct response to industry recommendations in the states Science, Technology and
Innovation Plan. The partnership will compliment and build on Utahs successful USTAR effort, which is
bolstering Utahs research strengths and increasing technology commercialization.

Analysis by the Utah Technology Council shows that technology jobs pay 57 percent more than other
sectors. While 8.6 percent of Utahs workforce is in the technology sector, it 2 constitutes 14.3 percent
of Utahs total payroll. Utah has more than 7000 technology companies, up from 6,374 in 2010.

http://www.prosperity2020.com/wp-content/uploads/2012/09/2011-12-08_P2020-news-release-
FINAL-3.1-1.pdf

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Chapter 3: Harnessing Innovations in Energy and Environmental Policy

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.

Republican governors also understand that developing our energy resources, pursuing economic
growth, and advancing environmental protection are not mutually exclusive. Each state has an array of
unique geographical, topographical, and demographic attributes that are not suitable for a one-size-fits-
all environmental policy. Instead, governors offer numerous approaches of ensuring access to clean air,
clean water and public lands.

In August 2012, the RGPPC released an Energy Blueprint for America that details the Republican
governors vision for a vibrant energy economy and sensible environmental regulation. For more
information about Republican governors vision for energy and environmental policy, read the plan at:
http://rgppc.com/an-energy-blueprint-for-america-policy-solutions-for-a-new-energy-economy/

ALASKA Governor Sean Parnell, Expediting the Point Thomson Project
IOWA Governor Terry Branstad, Increasing Midwestern Energy Production and Achieving or
Maintaining Low-Cost Energy
IOWA Governor Terry Branstad, Award Recognizing Environmental Stewards in Agriculture
NEW JERSEY Governor Chris Christie, Large Scale CHP/Fuel Cell Program
NORTH DAKOTA Governor Jack Dalrymple, EmPower ND program
OHIO Governor John Kasich, Ohios 21
st
Century Energy Policy
OHIO Governor John Kasich, Natural Gas Summit
OKLAHOMA Governor Mary Fallin, Natural Gas Vehicles and Infrastructure Development
PENNSYLVANIA Governor Tom Corbett, Historic Marcellus Shale Law
SOUTH DAKOTA Governor Dennis Daugaard, Effort to beat the Mountain Pine Beetles in the
Black Hills
TENNESSEE Governor Bill Haslam, Clean Tennessee Energy Grant Program
UTAH Governor Gary Herbert, Utah Clean Air Partnership
VIRGINIA Governor Bob McDonnell, Advancing Virginia as the Energy Capital of the East Coast
VIRGINIA Governor Bob McDonnell, Advances Conversion of State Vehicle Fleet to Alternative
Fuels
VIRGINIA Governor Bob McDonnell, Preservation of over 80 Acres of Historic Battlefields
WYOMING Governor Matt Mead, Balancing and Leveraging Energy and Natural Resources

Other Resources:
The Heritage Foundation, The American Conservation Ethic: The Principles of Conservation
International Energy Agency, World Energy Outlook 2011
Pacific Research Institute, 2011 Almanac of Environmental Trends
U.S. Chamber of Commerce, Project No Project
U.S. Chamber of Commerce, International Index of Energy Security Risk

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U.S. Energy Information Administration, Annual Energy Outlook 2012
U.S. Senate Environment and Public Works Committee, A Look Ahead to EPA Regulations for
2013

ALASKA
Governor Sean Parnell
Expediting the Point Thomson Project

On August 12, 2012, citing the risk to Alaskan and American jobs, Governor Sean Parnell urged Secretary
of the Interior Ken Salazar to exercise his authority to expedite the Record of Decision (ROD) on the
Point Thomson project. The U.S. Army Corps of Engineers has recently informed state officials that it is
delaying a major decision on the plan until late November one in a series of federal delays regarding
this project.

Point Thomson is the largest undeveloped oil and gas field in Alaska. Timely completion of the ROD is
important to keep Point Thomson on schedule for development in particular, to enable construction to
begin this winter. As part of its settlement of a long-standing dispute with the state, the field operator,
ExxonMobil, has committed to first production of gas condensate from the field no later than the winter
of 2015-2016. The project is expected to sustain 600 to 700 jobs and peak employment of 2,400 jobs. It
will increase throughput in the Trans Alaska Pipeline System, and provide an important impetus to large-
scale commercialization of North Slope natural gas.

As the lead federal agency, the Corps of Engineers had committed to issue the Point Thomson ROD by
September 21, 2012.

I am writing to inform you of a developing situation that is of urgent concern to the State of Alaska:
continued federal permitting delays involving the Point Thomson development project on the North
Slope, Governor Parnell wrote in a letter to Salazar. These delays come in spite of repeated
commitments made by federal officials to the State as recently as last week that target dates for a
permitting decision were on track. Such delays would jeopardize critical energy production from the
North Slope to boost the flow of oil through the Trans-Alaska Pipeline System and the creation of
thousands of jobs that our country so desperately needs. The purpose of this letter is to ask you to
exercise your authority to improve and coordinate permitting, particularly for energy projects in Alaska.

Read the full text of the announcement: http://gov.alaska.gov/parnell/press-room/full-press-
release.html?pr=6209

IOWA
Increasing Midwestern Energy Production and Achieving or Maintaining Low-Cost Energy

Iowa Governor Terry Branstad is the 2012-2013 Chair of the Midwestern Governors Association (MGA)
and has announced his agenda as developing and actively promoting a positive Midwestern narrative.
The MGA is working to renew the Midwestern brand, drive innovation, and improve the regions

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entrepreneurial network; it also supports efforts to increase domestic/Midwestern energy production
across all types of energy and seek ways to maintain or achieve low energy costs.

The first part of the agenda focuses on actively promoting the reasons why the Midwest is a great place
to call home and is at the heart of our nations economic recovery. The chairs agenda highlights what
makes the Midwest an ideal place to live, get an education, start a family, work and grow a business. In
addition, this portion of the agenda strives to improve the entrepreneurial connectivity among our
regions job creators and to foster the innovation and relationship-building that helps drive economic
growth.

The second part of the Chairs agenda builds on the energy production strengths of our individual states.
The Midwest offers a diverse portfolio of energy across its many states, including: coal, oil and natural
gas reserves, a burgeoning biofuels industry and some of the best wind resources in the nation. These
resources can help increase domestic energy production and increase the exportation of domestic low-
cost energy to other states and regions. Governors seek to leverage the energy assets of the Midwest to
lower energy costs to help drive economic development within the region and beyond, to help ensure
competitiveness in a global economy.

To help advance this agenda, Governor Branstad is asked his fellow Midwestern governors to join with
him on the following areas under each prong of this chair's agenda:

Develop and actively promote a positive Midwestern narrative: renew the Midwestern brand, drive
innovation, and improve the regions entrepreneurial network
Identify and highlight unique strengths of Midwestern states (highly educated, strong work
ethic, bread basket of the world, high quality of life, etc.) and seek and implement opportunities
to better develop and communicate a positive Midwestern image.
Serve as amplifier for and entry point to state economic development and tourism contacts and
initiatives.
Help build entrepreneurial network across the region to improve connectivity and intra-region
networking and mentoring, drive innovation, and align education initiatives for the jobs of the
future.
Promote the Midwests impact on the global economy and identify ways to improve how trade
and foreign direct investment is perceived by the public.
Support efforts to increase domestic/Midwestern energy production across all types of energy to help
maintain or achieve low energy costs
Identify state by state energy development opportunities and barriers.
Develop strategies and share ideas to maximize opportunities and overcome energy
development barriers.
Highlight economic development success stories that have been tied to increased Midwestern
energy production and low energy costs.
Read the full text of the initiative: http://www.midwesterngovernors.org/chairagenda.htm

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IOWA
Recognizing Environmental Stewards in Agriculture

In May 2012, Governor Terry E. Branstad, Lieutenant Governor Kim Reynolds and Secretary Bill Northey
announced the establishment of the Iowa Farm Environmental Leader Awards to recognize the
environmental efforts of Iowas farmers.

The state of Iowa will seek nominations of farmers that have taken significant steps to serve as local
leaders in environmental stewardship on their farms utilizing a variety of techniques and best
management practices. Nominees actions should merit recognition for leadership in advancing water
quality and soil sustainability measures in Iowa agriculture.

This award seeks to not only recognize farmers for their responsible choices, but also to encourage
other farmers to follow in their footsteps by building success upon success.

An appointed committee of representatives from both conservation and agricultural groups will
annually review the nominations and select the winners.

For the full text of the release: https://governor.iowa.gov/2012/05/gov-branstad-lt-gov-reynolds-sec-
northey-announce-iowa-farm-environmental-leader-awards-2/

New Jersey
Large Scale CHP/Fuel Cell Program

In support of the Christie Administrations commitment to a greener and more affordable use,
management and development of energy in the state, the New Jersey Economic Development Authority
(EDA) and the New Jersey Board of Public Utilities (BPU) launched the Large Scale Combined Heat and
Power (CHP)/Fuel Cell Program. This competitive grant program was created to support CHP and
standalone fuel cell projects serving commercial, institutional and industrial customers in New Jersey.

The program is available to support CHP or standalone fuel cell projects with an electric generating
capacity of greater than one megawatt (MW). New Jersey-based government (federal, state or local),
commercial, institutional or industrial entities advancing these projects are eligible. Applications for the
program were accepted from April 25, 2012 through June 25, 2012 at 5:00 p.m.

To be eligible, CHP systems greater than one MW with waste heat utilization must achieve annual
system efficiency of at least 65 percent; fuel cell projects greater than one MW without heat recovery
must achieve annual system efficiency of at least 45 percent. CHP and fuel cell system warranties must
be all-inclusive for at least five years. Additionally, businesses should create or maintain jobs in New
Jersey.

Grants under the program will be awarded under a tiered incentive structure based on the system size
and amount of electricity that the CHP or fuel cell project generates, with a maximum award of $3
million per project. Total state and/or federal funding cannot exceed 50 percent of the total project

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cost. Funding can be used for project-specific, fixed asset purchases. New installations are eligible, as
are expansions of existing facilities with new equipment. New equipment must be commercially
available and permanently installed. Applicants must provide evidence that a source of funds is needed
to complete the project.

The tiered incentive structure is as follows:

CHP Projects
Greater than 1 MW to 3 MW - $0.55 per watt

Greater than 3 MW - $0.35 per watt

Maximum Incentive - $3 million

Maximum Percent of Project Cost - 30 percent

Fuel Cell Projects
Greater than 1 MW (with Waste Heat Utilization) - $2.00 per watt

Greater than 1 MW (without waste heat utilization) - $1.50 per watt

Maximum Incentive - $3 million

Maximum Percent of Project Cost - 45 percent

For more information:
http://www.njeda.com/web/Aspx_pg/Templates/Npic_Text.aspx?Doc_Id=1706&menuid=1550&topid=7
22&levelid=6&midid=1357

North Dakota
Governor Jack Dalrymple
Empower ND Program; Blue Flint ethanol plant

North Dakota has policies in place to encourage development of a wide range of energy sources within
its borders, including traditional and renewable energy resources. The State has supported
development of a cohesive overall energy plan through the EmPower ND Commission, detailed below:

EmPower ND
Empower ND was created by 2007 legislation which authorized the North Dakota Department of
Commerce to convene an energy policy commission for the purpose of developing a comprehensive
state energy plan which encouraged development of a multi-resources energy policy, including
renewable and traditional sources, with policy goals and incentives in each energy sector. In July of
2012, Empower ND issued a new document outlining future development of energy resources in North
Dakota. This document detailed the success North Dakota has made in developing a variety of energy
resources, while outlining areas that the state needed to address to ensure continued success. This

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document provided a number of recommendations on ways to support continued success during a time
of rapid growth in the state, including:

1. Continued high level of Infrastructure Funding to support the current high level of growth in North
Dakota.
Maintaining a high level of funding for transportation infrastructure to address energy growth;
Continuing to support funding for housing infrastructure, including affordable housing for
energy industry workers;
Increased funding to support local governments in energy impacted areas through increased
formula funding and energy impact grants;
Working together with energy companies and landowners to support easements for needed
energy infrastructure;
Management of water resources necessary to address energy development and population
growth and to reduce the amount of water being transported via road.
Forecasting future energy load needs.

2. Research and Development investment
Continue to support programs such as the Lignite Research and Development already in place in
the state, which currently receives approximately $8 million annually through various funds to
support development of new coal technologies that will result in fewer emission and cleaner
energy
Continued funding for the oil and gas research and development program, which currently
receives approximately $4 million annually in funding from oil and gas production taxes.
Support of continued funding for the renewable energy research and development program.

3. Workforce Development
Supports efforts to incorporate additional Science, Technology, Engineering, and Mathematics
(STEM) learning in the K-12 levels, to help educate students for future careers in energy-related
professions.
Requests that the state continue to provide funding for TrainND, which provides customized
training programs and employment development initiatives across the state.
Requests that the state fund enhancements to Job Service North Dakotas systems and data
collection processes to provide analytical data related to workforce skills and employment to
better identify energy industry needs.

4. Positive Regulatory Environment
Empower ND supports development of a regulatory environment, at both the federal and state
levels, that encourages economic growth while ensuring environmentally-responsible
development of natural resources.
The state will continue to work to encourage state regulation of issues such as hydraulic
fracturing.

For more information: http://www.communityservices.nd.gov/uploads/resources/914/empower-2012-
final.pdf

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The state will look to implement many of these recommendations during the 2013 North Dakota
Legislative Session in order to further development of a variety of energy resources in the coming years.

Energy Innovation
One example of an innovative energy production facility that is currently being operated in North
Dakota is the Blue Flint Ethanol facility, located near Underwood, North Dakota. The facility produces
65 million gallons of ethanol per year, using steam from the nearby Coal Creek Station power plant to
process the ethanol. This creative use of resources allows the plant to operate without having to use
natural gas or other fuel sources to produce ethanol, resulting in reduced costs, water usage, and
emissions at the facility.

For more information: http://www.blueflintethanol.com/index.cfm?show=10&mid=29

OHIO
Governor John Kasich
Ohios 21
st
Century Energy Policy

In May 2012, the Ohio General Assembly adopted Ohios 21st Century Energy Policy, Senate Bill 315:

Included in Ohios 21
st
Century Energy Policy are 10 policy pillars:

Pillar 1 Shale: Modernizing Regulations While Promoting Job Growth
Recent advancements in technology have allowed previously-unattainable natural resources found in
shale to now be extracted. Accordingly, health and environmental regulations have been updated to
keep pace with these advancements to help ensure safe, environmentally responsible operations, all of
which is in the best interest of public health and safety, the environment, oil and gas workers, and the
industry. Regulatory updates include:

Dept. of Natural Resources (ODNR): On May 7, 2012, a comprehensive set of well construction
rules stemming from the passage of Senate Bill 165 were approved by the Joint Committee on
Agency Rule Review (JCARR). Among other important changes, this rules package adds
additional safeguards by upgrading procedures for how to properly construct a well including a
requirement that well construction materials used must comply with industry standards for the
type and depth of well being drilled, and a requirement that ODNR must be notified prior to a
well being cemented to protect ground water, and that cementing records must be submitted
for agency analysis. These rules will go into effect August 1, 2012.

SB 315 builds on previously-approved upgrades to well-constructions standards.

o All chemical information, including trade secret formulas, must be shared with doctors,
and medical professionals may share even proprietary chemical information with the
patient and other medical professionals directly involved in treating the patient,
o Well operators are now required to take water samples within 1,500 feet of a proposed
horizontal well and disclose the results in their permit applications,
o Well operators must disclose the proposed source of water used in the well drilling and
completion process,

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o Well operators who violate safety and environmental regulations are subject to
mandatory daily fines,
o Rules for disposing of waste water through underground injection are strengthened to
ensure protection of health and environment.

Public Utilities Commission of Ohio (PUCO): The Pipeline Safety Division will update regulations
for construction, inspection, and safety of these new lines.

Ohio EPA:
o New regulations will encourage wastewater treatment and recycling technologies in
order to conserve water resources and reduce Ohios reliance on underground injection
wells for wastewater disposal.
o The lengthy oil and gas operations permitting process is streamlined from a matter of
months to a matter of days by maintaining the same high standards for safety and
responsibility while improving internal agency operations to simply operate more
efficiently.

Dept. of Commerce: Multiple construction and occupancy reviews of structures at gas
processing facilities that can currently overlap and duplicate one another are consolidated and
streamlined.

Dept. of Transportation (ODOT): A new model road use agreement serves as a template for
counties and/or townships and oil and gas companies to determine what roads will be used,
what and how these roads will be maintained, and who will pay for road maintenance. To
protect the interests of local governments, ODNR will verify such agreements are in place as
part of its drilling permit process.

Pillar 2 Generation:
The PUCO will:
Update the Advanced portion of Ohios Alternative Energy Portfolio Standard to include
appropriate upgrades to coal-fired generation facilities and for conversion to natural gas,
Work with the PJM Interconnection and other states in PJM to request an expansion of the
Reliability Pricing Model to offer greater certainty with regard to electricity pricing.

Additionally, the OEPA will work with the PUCO to:
Review and pilot new generation and efficiency technologies (ex: Smart Grid),
Expand customer choice for renewables,
Assess federal EPA impacts on future generation and transmission.

Pillar 3Electricity Transmission and Distribution: Meeting Needs of Industry and Consumers
A major factor in job creation is getting energy where it needs to be so that the job creators that need it
can operate efficiently and at a low cost. The PUCO is authorized to:
Review the electricity transmission infrastructure in Ohios shale region to ensure transmission
and distribution are adequate,
Assess and recommend changes in the transmission and distribution system that would make
the development of renewable energy in Ohio more accessible and cost effective.

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Pillar 4Cogeneration / Waste Heat Recovery: Capturing Waste Heat to Make Green Energy
Turning otherwise wasted byproducts into usable energy makes sense if its cost effective. To encourage
efforts to recover waste heat and identify cogeneration as an appropriate technology, changes will:
Allow waste energy recovery facilities to qualify as a renewable energy source in Ohio,
Allow all Ohio electric utilities to use cogeneration (waste energy recovery and combined heat
and power systems) to meet alternative efficiency standards,
Revamp the Energy Loan Fund to place more focus on energy efficiency and alternative fuels,
Require the Ohio Dept. of Administrative Services (DAS) to review cogeneration as part of new
construction and major renovations in state facilities.

Pillar 5 Workforce Training: Aligning Industry Needs with Worker Training
Matching the skills of workers with the demands of the energy industry is a crucial part of Ohios energy
policy. Ohio is engaged in a statewide effort to improve workforce development initiatives because
workers with goods strengthen their families and communities with better jobs and are attractive to the
job creators that Ohio is seeking to recruit and help expand. SB 315 allows the state to work with its
regional workforce development partners to maximize job training opportunities around shale.

Pillar 6CNG/Alternative Fuels: Promoting the Use of Natural Gas
In order to encourage examination and adoption of alternatives fuels, the Governors Office, PUCO and
ODOT will:
Sign an agreement with other states to develop regional Compressed Natural Gas (CNG)
refueling infrastructure and promote the usage of CNG vehicles in Ohio (signed on 2/29/2012),
Assess converting all or part of the state fleet to CNG,
Develop flexible revolving loan fund for alternative fuels (CNG, biodiesel and ethanol),
Host a regional CNG conference with states and providers to jump start Ohios transition to
using more CNG in state and private settings.

Pillar 7Energy Efficiency: Promoting Efficiency to Save Resources
Promoting efficiency and maximizing our energy resources will help offset rising energy prices. DAS and
the PUCO will work to:
Improve state building efficiency,
Identify new efficiency technologies and programs available to Ohio, ]
Determine standards for state fleet vehicle replacement to increase efficiency,
Review utility green pricing programs and expand customer choice.

Pillar 8Coal: New Opportunities for a Critical Resource
New efforts will:
Provide $30 million to research carbon capture, sequestration, enhanced oil recovery, and other
new technologies,
Exempt coal combustion waste from additional fees and encourage solid waste landfill
management.

Pillar 9Regulatory Reform: Streamline and Expedite Environmental Permits
Smart regulation is necessary but the process by which businesses must comply with these regulations
should be simple to understand and navigate. The OEPA will:
Develop and issue general permits for business to minimize lengthy permit review.

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Pillar 10 Renewables: Promoting Renewables for a Balanced Energy Portfolio
Continuing to develop reliable and cost effective renewable energy sources is essential to ensuring that
Ohio has access to a diverse and well-rounded collection of energy sources and that we are preparing
for the future. To further this goal, the PUCO will:
Develop a flexible revolving loan fund for alternative fuels,
Revamp the existing Energy Loan Fund to help finance energy efficiency and renewable energy
projects,
Identify and address interconnection challenges that may be barriers to the development of
future renewable energy projects,
Review utility green pricing programs and expand customer choice.

http://governor.ohio.gov/Portals/0/pdf/MBR/SB315Energy.pdf

http://governor.ohio.gov/Portals/0/05.24.12,%20SB%20315%20Energy%20Final%20Passage.pdf

OHIO
Natural Gas Vehicle Summit

On October 9, 2012, Americas Natural Gas Alliance held in conjunction with the State of Ohio a Natural
Gas Vehicle Summit. The Summit was held to discuss strategies for increasing low-emission natural gas
as a vehicle fuel and to encourage the manufacture of natural gas vehicles (NGV). This NGV Summit
comes in the wake of Ohio Governor John Kasichs successful energy summit last year that encouraged
the examination and adoption of alternatives fuels by:
Signing an agreement with other states to develop regional Compressed Natural Gas (CNG)
refueling infrastructure and promote the usage of CNG vehicles in Ohio (signed on 2/29/2012),
Assessing converting all or part of the state fleet to CNG,
Developing flexible revolving loan fund for alternative fuels (CNG, biodiesel and ethanol),
Hosting a regional CNG conference with states and providers to jump start Ohios transition to
using more CNG in state and private settings.

To view Governor Kasichs remarks: http://www.youtube.com/watch?v=iUaM6XpzlAU

OKLAHOMA
Natural Gas Vehicles and Infrastructure Development

Obstacles to increasing Compressed Natural Gas usage are infrastructure and demand. Its a chicken-
and-egg scenario: consumers do not buy natural gas vehicles (NGV) that can only be refueled at a
limited number of stations, and gas stations do not want to add CNG pumps with only a limited number
of cars on the road.

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In November 2011, Governor Fallin unveiled an innovative and unprecedented multistate, bipartisan
initiative (MOU) to begin the process of breaking that cycle and jump-starting both the development
NGVs and improved CNG infrastructure.

The MOU describes a coordinated effort between the States to attract automobile manufacturers in the
U.S. to develop a functional and affordable original equipment manufacturer (OEM) fleet natural gas
vehicle (NGV) that will also meet public demand. Through the joint solicitation of a Multi-State Request
for Proposal (Joint-RFP) that aggregates annual State fleet vehicle procurements, the States will
endeavor to provide a demand base sufficient to support the design, manufacture, and sale of functional
and affordable OEM NGVs by automotive manufacturers in the United States.

The Joint-RFP requires that the ultimate cost of an OEM NGV should be comparably priced to an
equivalent gasoline powered model and that warranty and reliability concerns are not compromised.
Pursuant to the terms of the Joint-RFP, the States intend, where practical, to transition new fleet vehicle
acquisitions, in committed volumes, to a resulting OEM NGV.

As of October 2012, 15 states have signed on to this MOU including: Oklahoma, Colorado, Wyoming,
Pennsylvania, Maine, Utah, New Mexico, West Virginia, Kentucky, Texas, Mississippi, Ohio, Arkansas,
Louisiana, and Virginia.

http://www.ok.gov/governor/documents/Governor%20Fallin%202012%20Agenda%20-
%20Energy%20FINAL.pdf

Press
Oklahoma, 20 other states seek bids for CNG vehicles
By Michael McNutt July 24, 2012
NewsOK

On July 24, 2012, Oklahoma and 20 other states sent proposals to 19 auto manufacturers seeking bids to
produce affordable and functional compressed natural gas vehicles for use in state automobile fleets.

The requests were sent a week after Oklahoma Gov. Mary Fallin and Colorado Gov. John Hickenlooper
met with the Big Three automaker executives in Detroit. Fallin, who with Hickenlooper pitched the idea
last fall, said she was encouraged by the reception they received at all three, but none has a general-
purpose CNG model in production.

The request for proposals seeks bids on CNG-powered compact and midsize cars, four-wheel-drive
pickups and cargo vans. The closing date for the bids is Sept. 7; a solicitation overview meeting is
scheduled Aug. 8 at the Oklahoma History Center.

Through the RFP process, we hope to solicit bids on the production of affordable and functional CNG-
fueled vehicles for use in state automobile fleets, Fallin said. By incorporating more CNG vehicles into
our state fleets, we can save tax dollars by reducing the amount we spend on fuel. We can also support
the use of American-made energy that will help create jobs and reduce our dependence on foreign oil.

For full text of news article: http://newsok.com/oklahoma-20-other-states-seek-bids-for-cng-
vehicles/article/3695245#ixzz26MSWXMDF

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Please see Chapter 6 of this report for information on Governor Mary Fallins initiative: Savings through
Energy Efficiency.

PENNSYLVANIA
Historic Marcellus Shale Law

On February 14, 2012, Governor Corbett signed the Marcellus Shale bill into law. The bill enhances
protection of the states natural resources through stronger environmental standards, authorizes
counties to adopt an impact fee, and builds upon efforts to help move Pennsylvania toward energy
independence.

Drilling Standards
Increases well setback distance from 100 feet to 300 feet for streams, rivers, ponds and other
water bodies
Increases well setback distance from private water wells from 200 feet to 500 feet and to 1,000
feet for public drinking water systems
Expands an operators presumed liability for impairing water quality from 1,000 feet to 2,500
feet from a gas well, and extends the duration from 6 months to 12 months
Enhances water quality replacement standards
Enables the Pennsylvania Department of Environmental Protection (DEP) to revoke permits in a
more efficient manner to deal with imminent safety or environmental concerns
Increase blanket bonds from $25,000 up to $600,000
Provides for strong, uniform and consistent statewide environmental standards building upon
and incorporating best practices utilized by industry leaders

Protecting Natural Resources
Enhances hydraulic fracturing disclosure, including online posting utilizing FracFocus.org
Requires approval of water management plans
Encourages the use of non-freshwater sources for well development
Authorizes the Environmental Quality Board (EQB) to develop criteria for conditioning a well
permit based on its impact on public resources like parks, wildlife areas, natural landmarks,
special plant and species habitat and other resources
Ensures added levels of protection within floodplains

Protecting Health and Safety
Builds upon recent legislative accomplishments requiring 911 addressing for well sites and
establishing standards for pipeline safety
Assign 911 addresses and GPS coordinates to well sites and facilities.
Provides funding to assist in emergency response planning, training, coordination and grants for
specialized equipment to first responders
Enhances transparency of well reporting, inspections, violations and remediation
Expands citizen and water supplier notification of permit and drilling activities
Increases civil penalties for unconventional operators to $75,000

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Mitigating Community Impacts
Authorize counties to adopt an impact fee to offset costs associated with unconventional
natural gas development
Encourages counties to evaluate their current unmet needs
Develops an equitable formula to distribute revenue
Provides revenue to state agencies associated with development oversight
Addresses legacy impacts of abandoned oil and gas wells, mine reclamation and increases access
to first class water and sewer treatment systems
Preserves local governments traditional zoning authority
Expands municipal notification of permit applications

Fairness and Equality of Job-Creators
Provides increased uniformity and fairness of local regulation that any business needs to
succeed
Recognizes the Commonwealths prerogative to establish environmental standards
Establishes neutral arbiter (PUC) to resolve disputes between landowners, industry and local
governments
Provides long-term regulatory predictability for job-creators and capital investors

Energy Security
Helps establish Green Corridors in Pennsylvania for natural gas-fueled vehicles (building upon
the Governors commitment to the multi-state natural gas vehicle MOU)
Assists schools, mass transit systems, non-profits and companies convert vehicle fleets to and
increase use of natural gas

The historic measure is the first comprehensive re-write of the states Oil and Gas Act since 1984. It
contains much of what Corbett outlined in his Marcellus Shale proposal last October. His plan followed
the work of the Governors Marcellus Shale Advisory Commission. House Bill 1950 contains 24 of the
legislative recommendations offered by the advisory commission.

This growing industry will provide new career opportunities that will give our children a reason to stay
here in Pennsylvania, Corbett said. Thanks to this legislation, this natural resource will safely and fairly
fuel our generating plants and heat our homes while creating jobs and powering our states economic
engine for generations to come.

Read the full text of the announcement: http://www.newpa.com/newsroom/governor-corbett-signs-
historic-marcellus-shale-law

Press
Corbett signs shale well impact fee into law
February 14, 2012
Pittsburgh Post-Gazette

The Marcellus Shale impact fee and regulatory measure that passed the General Assembly last week is
now law, after Republican Gov. Tom Corbett signed it on Monday evening.

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He described the measure, which will charge drillers a per-well fee, update state environmental
regulations and subject local zoning ordinances to state-crafted standards, a historic overhaul of state
law.

"Thanks to this legislation, this natural resource will safely and fairly fuel our generating plants and heat
our homes while creating jobs and powering our state's economic engine for generations to come," Mr.
Corbett said in a statement.

Most of the measure goes into effect in 60 days. However, the portion requiring each county within the
drilling region to decide whether to impose the impact fee is effective immediately.

Those counties have 60 days to adopt an ordinance imposing the fee on shale wells. If commissioners
decide against doing so, they could be overruled if half of the municipalities or towns representing half
of the county's population approve their own resolutions in favor of a fee.

Revenues from that fee will be divided between local governments and a variety of state-based
environmental, infrastructure and economic-development programs.

Read more: http://www.post-gazette.com/stories/local/state/corbett-signs-shale-well-impact-fee-into-
law-84916/#ixzz21ePilCIM

SOUTH DAKOTA
Effort to Beat the Mountain Pine Beetles in the Black Hills

In July 2012, Gov. Dennis Daugaard announced that more than 215,000 trees infested with mountain
pine beetles have been treated since control operations began last fall in the Black Hills.

The total includes more than 115,000 trees on private lands and almost 100,000 trees in Custer State
Park.

Since we began the Black Hills Forest Initiative last year, weve been aggressive in attacking this
epidemic, Gov. Daugaard said. The mountain pine beetle infestation continues to be a threat, but Im
committed to continuing our efforts to beat the beetles over the next several years.

Beginning last fall, almost 150,000 acres of state and private forestland were surveyed, and 285,000
infested trees were marked for removal. Final figures will be available later this summer on the total
number of infested trees that were treated.

Treatment techniques include removing infested trees for use in sawmills, as well as the cut and chunk,
cut and peel, and cut and chip disposal methods.

The South Dakota departments of Agriculture and Game Fish and Parks, as well as several conservation
districts in the Black Hills, entered into a joint powers agreement allowing the districts to hire and
supervise survey and marking crews. The districts hired 46 seasonal employees to keep ahead of tree-
cutting operations.

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Cutters included four crews from the South Dakota Wildland Fire Suppression Division (WFS), an inmate
crew from the Department of Corrections (DOC), and nine private contractors. WFS and DOC crews
were used primarily in the most rugged areas of Custer State Park, where steep topography limited
access.

The Wildland Fire and Department of Corrections crews did outstanding jobs in very difficult terrain,
said State Forester Ray Sowers, who manages the Governors pine beetle initiative. We cut down every
beetle-infested tree we could find in Custer State Park, and our efforts should result in less detection
next year.

State agencies, counties and communities worked together to coordinate the assistance available to
private landowners. Crews surveyed and marked infested trees on private property, and landowners
could apply for reimbursements for removal costs. More than 110,000 acres of private land were
surveyed during the effort.

For the full text of the release: http://news.sd.gov/newsitem.aspx?id=13276

TENNESSEE
Clean Tennessee Energy Grant Program

On January 11, 2012, Tennessee Deputy Governor Claude Ramsey, Department of Environment and
Conservation Commissioner Bob Martineau and General Services Commissioner Steve Cates announced
a series of energy efficiency projects in state government.

Projects are designed to both increase cost savings and decrease emissions. The competitive grant
program will fund energy efficiency projects for local governments and municipalities, utilities, other
organizations and private entities.

Funding for the projects comes from an April 2011 Clean Air Act settlement with the Tennessee Valley
Authority. Under the Consent Decree, Tennessee will receive $26.4 million over five years to fund clean
air programs in the state.

For the full text of the announcement: http://news.tennesseeanytime.org/node/8276

UTAH
Utah Clean Air Partnership

On February 1, 2012, flanked by representatives from business, healthcare and growth planning
organizations, Utah Governor Gary R. Herbert called Utahns to action and urged them to do their part to
improve Utah's air quality. The initiative, the Utah Clean Air Partnership (U-CAIR), is an invitation to all
partners currently working toward cleaner air to join forces and motivate individual Utahns to change
their beliefs and the behaviors that impact state air quality.

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There are four main components of the Governor's U-CAIR initiative. First, it is statewide, designed to
include every area in the state and target trouble spots like the Wasatch Front, the Uintah Basin, Cache
Valley and the Arizona border region. Second, the initiative is voluntary. Third, the initiative has a
significant public education and outreach component, much like the successful "Slow the Flow" effort,
aimed at water conservation. The last U-CAIR component is partnerships. Not only has Governor
Herbert asked business and industry to continue their efforts, he will recruit local governments, school
districts, local chambers of commerce and individual households to become pledging partners.

"The core principle of U-CAIR is this: Each of us can do something to improve Utah's air," the Governor
said. U-CAIR initiative details are available at ucair.utah.gov. On the U-CAIR website, partners can find
specific strategies for improving air quality; make organizational, family, and individual air quality
pledges; track their progress toward reaching those pledges; and measure the benefits of collective
partner efforts.

For the full text of the release: http://www.utah.gov/governor/news_media/article.html?article=6515

VIRGINIA
Advancing Virginia as the Energy Capital of the East Coast

On April 17, 2012, Governor Bob McDonnell ceremonially signed 13 pieces of legislation that advance
Virginia as the "Energy Capital of the East Coast". The legislation continues Governor McDonnell's "all of
the above" strategy for advancing development of Virginia's energy resources.

HB559/SB511 - Natural gas utilities; qualified projects
Allows natural gas infrastructure expansion for the purpose of economic development projects where it
is not already available

HB587/SB418 - Electric transmission lines; approval process
Improves the process for approval of a 138kv transmission line

HB232 /SB492 - Renewable energy; expands definition
Encourages development of renewable thermal energy and includes landfill gas in the definition of
renewable energy

HB1102 /SB413 - Renewable energy portfolio standard program; credits for investments
Encourages research and development of renewable energy technologies

HB894 /SB493 - Electric and natural gas utilities; energy efficiency programs
Increases energy efficiency programs by requiring the SCC to consider all four cost benefit tests

HB1016/SB485 - Alternative Fuel Vehicle Conversion Fund; established
Creates the Alternative Fuel Vehicle Conversion Fund to assist in the conversion of the state fleet.

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Virginia is currently evaluating private-sector solicitants received to convert the state vehicle fleet to an
alternative fuel, one of the first states in the nation to do so

HB1177 - Virginia Energy Plan; adds to list of State's energy objectives
Updates the Virginia Energy Plan by including these objectives:
Ensuring adequate energy supply and a Virginia-based production
Minimizing the Commonwealth's long-term exposure to volatility and increases in world energy prices
through greater energy independence


VIRGINIA
Advances Conversion of State Vehicle Fleet to Alternative Fuels

On October 2, 2012, Governor Bob McDonnell announced contractual agreements with two private fuel
companies, and signed a multi-state memorandum of understanding and an executive directive
advancing the effort to convert Virginia's state vehicle fleet to alternative fuels. The ceremony featured
representatives from Clean Energy and Blossman Gas, private firms selected from 14 responders to a
solicitation for a public-private partnership to provide alternative fuel infrastructure and vehicle
conversions for Commonwealth vehicles, and Oklahoma Governor Mary Fallin, who is leading a coalition
of 22 states to work with vehicle manufacturers to drive down costs of alternative fuel vehicles.

These actions respond to legislation passed unanimously by the 2011 General Assembly and an
executive order issued in July 2011 that required the state to pursue an arrangement under Virginia's
Public-Private Education Facilities and Infrastructure Act of 2002 to explore building the infrastructure
and strategically converting the Commonwealth's vehicle fleet to use alternative fuels. Under the
agreement, Virginia will partner with Clean Energy to build at least six new natural gas filling stations
around the state, and with Blossman Gas to develop at least seven propane stations. The contracts may
also be used by municipalities and transit authorities across the state to convert their fleets and it is
anticipated that commercial partners will want to work with the Commonwealth to consolidate demand
for infrastructure as well. Additional refueling stations will be constructed based on increasing demand.

The executive directive sets out the steps state agencies must take to use these contracts and begin
converting state vehicles to alternative fuels wherever practical. The multistate MOU developed by
Governor Mary Fallin of Oklahoma and signed by Governor McDonnell is intended to leverage 22 states'
vehicle purchases and use to expand the market for natural gas-fueled vehicles across the country. An
RFP has already been issued for natural gas vehicles for these states that is expected to drive down the
cost of these vehicles.

"Virginia has an opportunity to lead the nation by fully committing to making a substantial contribution
to our nation's energy independence from foreign oil. The Commonwealth of Virginia owns thousands of
vehicles powered primarily by gasoline or diesel fuels blended from foreign oil," Governor McDonnell
said. "In addition to reducing our nation's dependence on foreign sources of oil, a transition to natural
gas and propane vehicles will also reduce emissions. Although these alternative fuel vehicles are

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available and operating on our roads today, available refueling infrastructure for these vehicles is
limited. The agreements signed today will bring new refueling stations to Virginia at no-cost, and they
will be available to state agencies, local governments, and private citizens and businesses. These
alternative fuel vehicles can and should be used by the Commonwealth to reduce the Commonwealth's
dependence on foreign oil and expand markets for domestic fuels.

"Not only is this good for the government and the environment, but ultimately it will be good for
consumers and the economy as well. The infrastructure created through this effort will be available to
fuel passenger vehicles and other commercial fleets. Through this innovative public-private partnership
we enter into today, the Commonwealth, industry leaders and innovators can work collaboratively to
move state government and private industry away from vehicles fueled by gasoline and diesel fuel and
reduce our dependence on foreign oil."


VIRGINIA
Preservation of Over 80 Acres of Historic Battlefields

On August 14, 2012, Governor Bob McDonnell announced that the Commonwealth of Virginia has
partnered with the Civil War Trust and the City of Petersburg to preserve over 80 acres of land that
played a critical role in Virginia's Civil War history. Preservation of the two sites - Cemetery Hill and the
South Side Depot - is being funded by Transportation Enhancement Grants awarded by the
Commonwealth Transportation Board.

Governor McDonnell said "Virginia is home to many sites that played a critical role in our nation's early
struggles for survival. The 10 month Petersburg Campaign saw over 16 major battles, with more than
80,000 men killed, wounded or captured and was crucial to reuniting our great nation. It is imperative
that we take every step to preserve as much of this hallowed ground as possible so that future
generations can enjoy the rich history that these sites have to offer. I am very pleased that the Virginia
Department of Historic Resources and the Commonwealth Transportation Board have once again
partnered with the Civil War Trust and the City of Petersburg to help protect this hallowed ground for
future generations."

Earlier this year, the Commonwealth Transportation Board awarded $448,000 to the Civil War Trust to
help fund the acquisition of Cemetery Hill and $400,000 to the City of Petersburg to help restore the
historic South Side Depot. The 81 acre Cemetery Hill property, located between Petersburg National
Battlefield and Blanford Church, played a critical role in three major battles during the campaign. The
South Side Depot, located in the Old Town Historic District, served the last rail line controlled by the
Confederate Army and played a critical role throughout the campaign.

"Preservation of these historic sites is not only critical to protecting the rich history of Virginia but also
the nation," said Secretary of Transportation Sean T. Connaughton. "Additionally, as noted by the
Virginia Tourism Corporation, sites such as Cemetery Hill and the South Side Depot significantly
contribute to the Commonwealth's tourism related economy. I look forward to continuing to partner

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with the Civil War Trust and the Department of Historic Resources as we look for other opportunities to
protect Virginia's history.

During the McDonnell Administration, the Commonwealth Transportation Board has awarded nearly $5
million in matching Transportation Enhancement Grants for Civil War preservation projects. Aside from
preservation, a portion of this funding was used to develop a new battlefield application for smart
phones and tourist information kiosks at rest areas to help travelers better explore Virginia's battlefields
as well celebrate the Sesquicentennial of the Civil War.

For the full text of the release: http://www.governor.virginia.gov/news/viewRelease.cfm?id=1376

WYOMING
Governor Matt Mead
Balancing and Leveraging Energy and Natural Resources

Hydraulic Fracturing
The BLM proposed its own set of hydraulic fracturing rules two years after the State of Wyoming
implemented rules to address hydraulic fracturing. Wyomings rules cover well-bore integrity, flowback
water and disclosure of hydraulic fracturing constituents used in drilling operations on federal, private
and state lands.

Governor Mead objected to the proposed BLM rules in a letter to Secretary of Interior Salazar on the
basis that BLM has not questioned the adequacy of Wyomings rules in protecting public health, safety
and the environment; Wyoming is in a better position than the federal government to determine the
best practices for overseeing hydraulic fracturing operations in Wyoming; the financial burden the BLM
rule imposes on Wyoming and other primarily western states is excessive, the regulations duplicative.

Wyoming Energy Strategy
Recognizing the need for not only a national energy strategy, but a state energy strategy as well,
Wyoming Governor Matt Mead is developing an energy strategy with input from conservation and
environmental groups, government agencies, constituents, and energy industries operating in Wyoming.
Governor Meads assertion that developing and producing energy while conserving and protecting
Wyomings natural resources and heritage is not an either-or proposition led to a vision designed to
capture Wyomings values: Wyomings Energy Strategy will achieve excellence in energy development,
production and stewardship of its natural resources for the highest benefit of its citizens.

Press
Wyoming Gov. Matt Mead outlines state energy policy
By Adam Voge October 16, 2012
Casper Star-Tribune

Gov. Matt Meads energy plan stresses innovation, education, production and natural resource
protection among other things and could include finalized initiatives by the end of the year, a top
advisor said Monday.

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Shawn Reese, Meads policy director, released a draft version of the governors energy strategy at a
legislative committee meeting Monday. The plan doesnt include specific initiatives, but Reese expects
working groups to craft some by the end of the year.

We should be the state other states look to, he said at a Joint Minerals, Business and Economic
Development Committee meeting in Casper.

The state will achieve excellence in energy development, production, and stewardship of its natural
resources for the highest benefit of its citizens, according to the plans mission statement.

The document prioritizes creating jobs, generating affordable and abundant power, protecting natural
resources and heritage, and leading the way in resource development and research.

The plan was intentionally crafted to resemble a corporate plan, which can be annually updated and
refreshed beyond Meads time in office.

Reese said the group crafting the strategy opted not to include language specific to different energy
industry sectors such as oil and gas, uranium or coal to avoid picking winners and losers. They
instead identified themes for prioritization, which will soon include specific initiatives.

Among the themes identified by the state are economic competitiveness, expansion and diversification,
efficient and effective regulation, reclamation and mitigation and education, innovation and new
technologies. Each topic is broken into smaller subcategories.

The state plans production-related goals include maintaining or expanding Wyomings total energy
output or national market share and fostering new energy-related industries and infrastructure. Reese
said he expects the subtopic could include initiatives related to compressed natural gas-powered
vehicles and infrastructure.

The plan would also aim to shape how the energy industry is regulated. The latest draft includes
identified needs to give state and local governments primacy in energy regulation, streamline state
agency operations and remove redundancies from permitting processes, create authoritative state data
sets and emphasize public education aimed at conflict resolution.

The document also prioritizes reclamation and mitigation, a state priority which Reese said has only
been intensified with the reduction of abandoned mine lands funding.

The plan doesnt include specific measures related to reclamation and mitigation, but makes becoming
an innovator and leader in the processes a priority. Reese said measures created under the plan could
include a conservation bank for off-site mitigation funded by developers. Under the latest draft, the
state would also develop a consistent approach to bonding for reclamation.

Education is another of the states priorities. The strategy includes encouraging energy literacy in
schools and utilizing work programs for use in community colleges and other work force services. Reese
said the plan could include some sort of K-12 energy development and conservation lesson plan.
The state also identified increased energy efficiency, scalability of energy systems and applied research
as priority areas under the plan.

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The plan will create a clear long-term vision for the state, but details are still not yet specified. Reese
said the states next step is to bring together diverse working groups which could include industry,
regulators and private citizens to further shape the plan with specific initiatives.

The latest plan has not yet been approved by Mead, but Reese anticipates it will be soon.

For full text of the article: http://trib.com/news/state-and-regional/wyoming-gov-matt-mead-outlines-
state-energy-policy/article_22234bd4-3f1d-555f-ac6c-0a4c57d6db59.html

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Chapter 4: Reforming Health Care

On June 28, 2012, the Supreme Court ruled on the Patient Protection and Affordable Care Act (PPACA)
upholding the individual mandate as a tax but limiting the power of the federal government to coerce
state Medicaid expansions. The court ruled that the government could not compel states to expand
Medicaid by threatening to withhold federal money to existing Medicaid programs. As a result,
governors must grapple with difficult decisions for their states in regards to the Medicaid expansion.
Republican governors in several states have said they will likely oppose expanding the program.

Aside from the Medicaid expansion piece of the Obamacare puzzle, governors are faced with numerous
difficult decisions, arbitrary implementation deadlines, and an uncooperative HHS. The federal
government refuses to answer governors questions about the implementation of the law in any
substantive way.

RGPPC engaged in this debate a number of ways in 2012:

March 21, 2012: Utah Governor Gary Herbert gave a speech to the American Action Forum (AAF)
unveiling the 7 healthcare principles that will shape the Republican governors Repeal and Replace plan.
For full text of the release: http://www.ksl.com/?nid=960&sid=19678106

March 21, 2012: In conjunction with Governor Herberts speech to AAF, Virginia Governor Bob
McDonnell wrote an opinion editorial touting the same seven healthcare principles.
For full text of this release: http://www.rga.org/homepage/gop-governors-unveil-7-principles-of-real-
health-reform/

July 10, 2012: Virginia Governor Bob McDonnell, Chairman of the Republican Governors Association
wrote a letter to President Obama posing 30 questions regarding the Medicaid expansion rules and
regulations. In his letter he detailed specific questions about additional costs of funding the Medicaid
expansion, the sustainability of the program in general, and requested answers on how certain
provisions of the ACA should be implemented.
For full text of this letter: http://rgppc.com/medicaid-and-exchange-letter-2

July 13, 2012: In response to Governor McDonnells letter to the POTUS, Acting Administrator for the
Centers for Medicare and Medicaid Services (CMS), Marilyn Tavenner responded on behalf of the
administration.
For full text of this release: http://nasuad.org/documentation/newsroom/CMS_Response_VA.pdf

July 23, 2012: In reply to Tavenners response, Governor McDonnell wrote a letter to Health and Human
Services Secretary Kathleen Sebelius reiterating his first letter and saying With the challenging and
detailed work ahead for our nation to address the issues of health care, the letter was wholly
inadequate. The response was neither substantive nor serious and appeared to be more of a marketing
tool than serious problem solving
For full text of this letter: http://www.rga.org/homepage/rga-continues-to-press-hhs-for-answers

September 27, 2012: Governor Bob McDonnell reiterates the need for additional guidance on the
Medicaid and Health Insurance Exchanges provisions in Obamacare stating, We are now nearly two-

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thirds of the way to the laws alleged implementation date. How much longer will the Obama
Administration make governors wait to have our questions answered?
For the full text of this letter: http://rgppc.com/rga-letter-pressing-hhs-for-answers/

Included in this chapter are several policy initiatives that confirm the notion that healthcare reform
should be executed at the state level.

IOWA Governor Terry Branstad, Mental Health Reform
IOWA Governor Terry Branstad, Health Information Network
IOWA Governor Terry Branstad, Modernize Services for the Aging
LOUISIANA Governor Bobby Jindal, Louisiana Behavioral Health Partnership
MAINE Governor Paul LePage, 2011 Landmark Health Care Insurance Reform Bill
NEBRASKA Governor Dave Heineman, Improvements to Child Welfare Reform
PENNSYLVANIA Governor Tom Corbett, Human Services Block Grants
TENNESSEE Governor Bill Haslam, Health and Wellness Task Force to tackle obesity
UTAH Governor Gary Herbert, The Utah Health Exchange

Other Resources:
American Action Forum, Sustainability of Medicaid: Action Steps for Governors to Achieve
Meaningful Reform
American Enterprise Institute, Providing improved care management for Medicare/Medicaid
dual-eligible beneficiaries
The Heritage Foundation, Saving the American Dream: A Plan to Fix the Debt, Cut Spending,
and Restore Prosperity
Milliman, PPACA Health Insurer Fee: Estimated impact on state Medicaid programs and
Medicaid health plans
NFIB, Small Business and Health Insurance: One Year After Enactment of PPACA
Mercatus, The Fiscal Consequences of the Affordable Care Act
House Energy and Commerce Committee, Health Law Implementation Timeline
Deloitte, Affordable Care Act Timeline
Office of the Speaker, Obamacare: A Budget-Busting, Job-Killing Health Care Law
Joint Economic Committee, Obamacares $4 Trillion Tax Increase
Republican Study Committee, A Solution from the Republican Study Committee for Access to
Affordable, Quality Health Care for All Americans

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IOWA
Mental Health Reform

On May 25, 2012, Governor Branstad signed Senate File 2315, a law reforming Iowas mental health
system. The law redesigns publicly funded mental health and disability services by requiring certain core
services and delivers these services locally while administering them regionally.

In result of this law, appropriations made for purposes of Mental Health and Disability Services (MH/DS)
are shifted to a MH/DS Redesign Fund created in the Act and are then appropriated to pay the
nonfederal share of Medicaid program services costs that would otherwise be billed to counties for the
following Medicaid services provided in FY 2012-2013: habilitation, targeted case management, home-
based and community-based services waiver services for persons with intellectual disabilities and brain
injury, community-based intermediate care facilities for persons with mental retardation (ICF/MR), and
the state resource centers.

Approximately $231 million was projected to be needed for the state to assume the county obligations
for the Medicaid nonfederal share for the services listed above. For FY 2012-2013, there is a new
appropriation from the General Fund of the State of $40 million plus approximately $189.8 million in
state and federal funding that had previously been distributed to counties was shifted to the redesign
fund or designated for the Medicaid program from the following sources: Property Tax Relief Fund
standing appropriation (approximately $88.4 million includes $7.2 million from 2012 Iowa Acts, SF
2071), replacement electrical generation tax revenues standing appropriation (approximately $1.2
million), MH/DS allowed growth funding appropriation (approximately $75 million), MH/DS state cases
appropriations (approximately $11.2 million), and MH/DS Community Services Fund ($14.2 million).

For the full text of the bill: http://coolice.legis.iowa.gov/Cool-
ICE/default.asp?Category=billinfo&Service=Billbook&menu=false&ga=84&hbill=SF2315

Press
Branstad signs mental health care reform bill
By Richard Pratt May 25, 2012
The Gazette

Surrounded by Democratic and Republican legislators, Gov. Terry Branstad praised a bipartisan effort to
overhaul Iowas mental health system as he signed a bill implementing the changes.

Unfortunately, in this day and age, we dont see a lot of things done on a bipartisan basis, Branstad
said during the bill signing ceremony outside the Black Hawk-Grundy Mental Health Center. Many
legislators making up the Cedar Valley contingent in the Iowa House and Senate attended the ceremony,
along with the bills floor managers, Sen. Jack Hatch, D-Des Moines, and Rep. Renee Schulte, R-Cedar
Rapids.

The bill redesigns Iowas county-based mental health and disability system so services are delivered
locally but administered regionally an approach that is already in place for Black Hawk County and its
neighbors. The result will be a more economical approach that will better meet the needs of our
people, said Branstad.

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This redesign is about putting the needs of patients first, he added. This bill creates a system that
balances availability, affordability and quality of care.

Under the new law, counties will maintain their property tax levy that generates about $125 million
annually for mental health services. Every county will levy the equivalent of $41.28 per person in
property taxes for mental health services, an amount that will be reduced over five years with dollar-for-
dollar property tax relief from the state.

Some counties will have to increase their levies while others will reduce them to that per-person
amount. It will cost the state an estimated $17.3 million to bring all counties below the amount up to
the target.

Area counties piloted the approach in the spring of 2008 and formally combined into a region on Jan.
1, 2009, said Bob Lincoln, who coordinates Black Hawk Countys human services programs. The region
started with five counties, he noted. As of yesterday, we are 13 counties.

Lincoln credited the elected supervisors in those counties for making the political decision to form and
join the region. Being connected is the best way to deliver services, he said.

He cited the regions 10-bed crisis stabilization center, which works closely with psychiatric hospitals. It
allows a place for patients who dont need hospitalization but need time to become medically stable
and get the necessary support in place at home.

The current approach means each county has its own administrative expenses, which increases costs. As
a result, the county-by-county system can be financially unsustainable and unpredictable for families,
said Branstad. This bill will advance care and accountability. This bill is an investment in our states
future.

Basically, we had 99 different systems, said Hatch, until now. He noted Van Buren County in southern
Iowa has no structured mental health delivery system, which means residents are not assured of
receiving services. Why shouldnt all Iowans get a core set of services?

Schulte said Branstads signature on the bill is the first of many milestones as the state transitions to the
regional system over the next four to five years.

For full text of the news article: http://thegazette.com/2012/05/25/branstad-signs-mental-health-care-
reform-bill/

IOWA
Health Information Network

The Iowa Department of Public Health has formed Iowa e-Health, a collaboration among consumers,
health care providers, insurers, state government, and health care purchasers - to build the Iowa

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Health Information Exchange (IHIN) and encourage Iowa providers to use electronic health records
(EHRs).

The IHIN will allow health care providers to access vital patient health information no matter where the
patient has been seen in Iowa. IHIN is a hub that connects different EHRs throughout the state, which
allows patient information to flow between providers in a secure and confidential way.
Initially, the type of information that will be exchanged through the IHIN include:
secure provider to provider messaging
continuity of care document (summary of a patient record)
clinical lab results
immunization list
medication history

The 5 Domains of Iowa e-Health:
Governance: convening stakeholders, setting direction and goals, and providing oversight to
ensure accountability
Finance: identifying and managing financial resources to achieve short and long-term
sustainability
Technical Infrastructure: implementing and managing the core infrastructure and standards to
enable the electronic exchange of health information among providers
Legal and Policy: establishing policies and trust agreements to safeguard privacy and security of
electronic health information
Business and Technical Operations: performing day-to-day activities to support Iowa e-Health
operations and alignment with broad health reform

Read more here: http://www.iowaehealth.org/consumer/overview.html

Press
Xerox ACS to Build Iowa Health Information Exchange
By Nicole Lewis January 13, 2012
Information Week

ACS, a Xerox company, has won a $12 million contract to implement and manage Iowa's state health
information exchange, which will electronically connect the state's hospital systems, healthcare
providers and payers, including Iowa Medicaid.

The five-year contract calls for ACS to develop the exchange using the software as a service (SaaS) cloud
computing model in which the hardware, software, and data center operations will be managed by ACS.
The company also will deploy advanced analytics and software platforms that present a comprehensive
view of a patient's health history, medication lists, lab results, and family and social history.

The exchange is being developed for members of Iowa e-Health, a consortium created by the Iowa
Department of Public Health (IDPH) that is comprised of Iowa hospitals, consumers, healthcare
providers, payers, and others. Iowa e-Health will govern the exchange, known as the Iowa Health
Information Network (IHIN), and the consortium plans to begin piloting the network in July, with full
implementation planned by December.

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"ACS will provide the advisory, design, implementation, training, and operations services necessary to
create and roll out the IHIN statewide," Jack Buxbaum, vice president, HIE Services at ACS, told
InformationWeek Healthcare. "The project team is a partnership between the Iowa Department of
Public Health (IDPH), ACS, and our technology partners: Informatics Corporation of America (ICA) of
Nashville, Tenn., Genova Technologies of Cedar Rapids, Iowa, and LightEdge Solutions of Des Moines,
Iowa."

Explaining that the exchange will be accessed by providers operating across the state in rural and urban
areas, Dr. Mariannette Miller-Meeks, director of the Iowa Department of Public Health, told
InformationWeek Healthcare that the Iowa Health Information Network will connect the state's four
major hospital systems and their affiliated clinics and physician practices.

These providers include the University of Iowa Hospitals and Clinics, Mercy Medical Center, the Iowa
Health System, and the Genesis Health System. The four hospitals alone comprise about 85 percent of
the hospital beds in the state, Miller-Meeks said. In addition, two payers--the Wellmark Blue Cross and
Blue Shield of Iowa, and Iowa Medicaid--also will link their systems to the exchange.

The HIE hopes to reduce duplication of tests and test procedures, enhance prescribing capabilities, and
facilitate communication with groups that might not have the financial ability to have a complete
electronic health record at their facility but could transmit through a continuity of care document.

According to Buxbaum, ACS will streamline the integration of acute and ambulatory Electronic Health
Records (EHR) systems by conducting interoperability testing similar to Integrating the Healthcare
Enterprise (IHE) Connectathons, which are professionally managed and independently monitored testing
events. The IHE Connectathon is the healthcare IT industry's only large-scale interoperability testing
event and is held annually in Asia, Europe, and North America.

"First, we will undertake an event similar to an IHE Connectathon, which will allow us to test IHIN
interoperability with EHR vendors who are prominent across the state of Iowa," Buxbaum said. "Second,
the HIE solution powered by our primary partner, ICA, will provide a utility that EHR vendors may access
in order to test their interoperability with the IHIN."

Buxbaum also commended the work of the IDPH, in collaboration with the Iowa e-Health consortium, to
develop foundational policies, enact relevant legislation, obtain stakeholder buy-in and support, recruit
early adopters, and establish and begin to execute an economic sustainability model.
"We have found that these non-technical aspects of an HIE are in many ways the most compelling and
challenging to states undertaking initiatives such as this," Buxbaum said.

Full text of the article: http://www.informationweek.com/healthcare/interoperability/xerox-acs-to-
build-iowa-health-informati/232400370

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IOWA
Modernize Services for the Aging

In 2012, the Legislature adopted the Governor Branstad administrations plan for a new regional service
delivery model for Area Agencies on Aging (AAAs). This new model will significantly modernize and
simplify the provision of services for Iowas aging population. Under the new model, the Iowa
Department on Aging will reduce the existing 13 AAAs while maintaining and standardizing services
provided to the elderly. This reorganization, which began in 2011, will allow resources to be distributed
on an economy of scale, increase efficiency of elderly programs, and will require systems to be more
user-friendly. In addition, the Iowa Department on Aging will redesign its structure to increase
efficiency. These reforms will enhance and strengthen Iowas aging network.

For more information regarding the Iowa aging network reorganization:
http://www.aging.iowa.gov/Documents/Commission/Attachments/2011/11.1.11/HF45_PlanReduceAAA
.pdf

LOUISIANA
Louisiana Behavioral Health Partnership

In March 2012, Louisianas Department of Health and Hospitals launched the Louisiana Behavioral
Health Partnership the state's new system to transform and enhance behavioral health care across the
state.

The Partnership was developed to improve coordination of behavioral health services for 50,000 youth
and about 100,000 adults with serious mental illness and/or addictive disorders who are uninsured or
served through Medicaid, and to better leverage state general fund dollars to enhance and expand
services for those in need.

The Partnership also includes the Coordinated System of Care (CSoC), which was created by Gov. Bobby
Jindal to coordinate services for children with highly complex behavioral health needs who are already
in or most at-risk of being in out-of-home-placements, aligns the services of DHH, the Department of
Children and Family Services, the Department of Education and the Office of Juvenile Justice. The
System, which serves 2,400 of the state's children with the most severe behavioral health challenges, is
overseen by a governance board made up of family representatives, advocates, a youth representative
and representatives of each agency.

In 2011, the state selected Magellan to serve as the Statewide Management Organization (SMO)
responsible for managing behavioral health services for all eligible youth and adults in the Partnership
and the Coordinated System of Care.

As the SMO, Magellan is responsible for establishing a network of providers and coordinating services
for all eligible members to ensure optimal health outcomes. The company will manage claims for eligible
youth and is at risk for adult service provision, for which the company is paid by the state on a per-
member, per-month basis. Magellan has spent the past several months establishing a strong network of

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behavioral health care providers across the state. The company has established offices in Baton Rouge
and Shreveport and has employed more than 200 Louisianans to carry out its mission of helping the
state improve and coordinate behavioral health services.

As one of many efforts to engage the community and provide transparency, Magellan is forming a
Governance Board that will include six Louisiana community representatives and six Magellan
representatives. This board will have shared decision-making authority to shape the vision, strategy and
oversight of Louisiana's behavioral health system, in coordination with the Partnership and CSoC.

For the full text of the release: http://new.dhh.louisiana.gov/index.cfm/newsroom/detail/2431

MAINE
Governor Paul LePage
2011 Landmark Health Care Insurance Reform Bill

On May 17, 2011, Governor Paul LePage signed LD 1333, an Act to Modify Rating Practices for
Individual and Small Group Health Plans and To Encourage Value-based Purchasing of Health Care
Services" a Republican endorsed bill that aims to make health insurance affordable to all Mainers.

LD 1333 increased competition in Maines health insurance market allowing individuals and businesses
to buy insurance from other New England states.

The measure also helps small businesses by allowing job creators with fewer than 50 employees to band
together to purchase insurance. By widening the insurance pool and reducing risk, the companies that
power Maine's economy can drive down their health insurance costs and make room to expand and hire
more Maine people.

I am proud of everyone involved in making this piece of legislation a top priority. Republicans have
clearly demonstrated that health care reform is important. More importantly, Republicans have shown
that Mainers come first. More choice and competition will drive down the high costs of insurance
premiums making coverage more affordable to everyone, said Governor LePage.

For the full text of the release:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News&id=245862&v=article2011

Press
ObamaCare in Reverse: Maine deregulates the insurance market. Premiums fall.
May 30, 2012
Wall Street Journal

One tragedy of the Affordable Care Act is that we already know what its regulations will do to insurance
markets, because the states have been conducting policy experiments since the 1990s. But we also
know from the states that the damage is reversible, as shown by Maine's emerging insurance
turnaround.

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In 1993, Augusta passed coverage laws that resemble those that ObamaCare is about to impose
nationwide: Insurers could only vary premiums within narrow bands regardless of age or health status, a
regulation known as community rating. Four of Maine's five insurers in the individual market stopped
offering coverage and fled, and the state entered an insurance "death spiral" in which premiums don't
cover underlying medical costs. That leads to higher premiums, consumers dropping coverage as a
result, and still higher premiums in turn.

Then the 2010 electoral wave carried in Republican Governor Paul LePage and a GOP legislature, and
they took modest steps to deregulate the insurance market. Insurers are now allowed to sell policies for
premiums that range from 3 to 1 on the basis of age, rather than the prior 1.5 to 1, and to offer
incentives or discounts for consumers to choose high-value providers.

The state also created a reinsurance fund that taxes all health plans by $4 a month. If someone ends up
requiring extremely expensive care, the fund picks up some of the costs, which means insurers can
better manage their future liabilities and pass the savings on to individuals.

The returns are now rolling in for the new coverage that can be offered starting on July 1, and premiums
are falling by as much as 69 percent for Maine's dominant insurer, Anthem.

According to the Maine Bureau of Insurance, a married couple age 40 to 44 with one child will pay
$1,919 a month for a policy with a $2,250 deductible in 2013 if they choose to re-up their current policy.
If the same family switches to the new health plan, or buys the plan for the first time, their premium will
fall to $920, a 52 percent decrease. A couple over 60 could buy the same policy for $1,290, down from
$2,466 under the old system. Or a young adult 25 to 29 could buy a high $10,000 deductible plan for
catastrophic expenses for $232, previously $665.

The old and new products are not identical, so the comparison isn't perfect. On top of the rule changes,
the benefits are slightly different, such as separate deductibles for in- and out-of-network services. And
many of the year-over-year reductions are less dramatic, in the range of 10 percent to 20 percent, while
a few older consumers will see rate increases.

Still, any premium decrease is remarkable on the U.S. health cost escalator, which is being accelerated
by ObamaCare. Maine consumers who choose to stay with their current policy (same benefits, old rules)
will see an average premium rate increase of just 1.7 percent from 2012 to 2013compared to an
historical trend of about 10 percent. Some 46 percent of the existing book of business will see a rate
decrease.

The major irony is that Maine's reform merely brings its community rating rules into compliance with
ObamaCare, which is actually less restrictive than the rules the state passed in 1993. The new national
health law will block a further Maine liberalization that is due for 2016.

Maine learned the hard way that the most heavily regulated insurance markets are the most expensive.
But the more ominous lesson out of Vacationland is for the 33 states that had the wit never to make the
Maine-ObamaCare mistake. They're the ones that are about to see premiums spike under the
Affordable Care Actperhaps by as much as 69 percent, and likely by far more.

For the full text of the article:
http://online.wsj.com/article/SB10001424052702304707604577426162012576398.html

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NEBRASKA
Governor Dave Heineman
Improvements to Child Welfare Reform

On April 11, 2012, Gov. Dave Heineman signed into law legislation aimed at helping Nebraska children as
part of LR 37, a package of bills related to improving the child welfare reform efforts.

The child welfare package includes four bills introduced by the Legislatures Health and Human Services
Committee and one bill introduced by the Legislative Performance Audit Committee.

LB 820 requires DHHS to apply for a federal foster care demonstration project, increases foster
care payments, and changes foster care licensure requirements.
LB 821 creates the Nebraska Childrens Commission and the Inspector General for child welfare.
LB 949 requires DHHS to develop a strategic plan that includes goals, benchmarks and progress
reports, expenditure reports and creates a separate child welfare budget. The Governor signed
this bill into law last week.
LB 961 changes provisions relating to case management, caseloads, and the contract for child
welfare services.
LB 1160 requires DHHS to develop a plan for a web-based, statewide automated child welfare
information system.

For the full text of this announcement:
http://www.governor.nebraska.gov/news/2012/04/11_child_welfare_reform.html

PENNSYLVANIA
Human Services Block Grants

In June 2012, Governor Corbett announced his 2012-2013 budget, which included an innovative pilot
program that transforms how state government works with county governments in providing services.

Recognizing that counties needed flexibility to fund their welfare-services programs in a way that best
serves their communities and drives innovation, Governor Tom Corbetts Administration crafted and
then worked with the legislature to institute the Human Services Block Grant pilot program. HSBG is the
first and only block grant in the nation that not only combines funding for health-care and social-service
programs but also grants counties the flexibility to design systems that advance four goals:
independence/self-sufficiency and employment, prevention and recovery, safety and cost-effectiveness.
HSBG sets performance measures with targeted outcomes that will inspire counties to innovate and
compete based on the above goals.

In the past, counties faced all sorts of bureaucratic hurdles, as they were inundated with multiple and
complex reporting requirements because of burdensome rules and bulletins. HSBG offers instead a
streamlined system and administrative structure that will allow flexible design and simplified reporting
to ensure that more funding is directed to recipients than to red tape and overhead. Each county will
receive a scorecard rooted in performance outcomes that will reveal where each dollar is being spent
and how well the county performed, offering needed transparency to the public.

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The Human Services Block Grant combines seven funding streams into one grant free of burdensome
regulations, a simplified grant that lets county authorities decide where the money is most needed.

Those combined funding streams include:
Mental Health Community Programs
Intellectual Disabilities Community Base
County Child Welfare Special Grants
Homeless Assistance Program
Act 152
Behavioral Health Services Initiative
Human Services Development Fund

The Department of Public Welfare reviewed 30 county applications and selected the 20 participating
counties based on several factors, including the county's geography, size, poverty-level, recent
population shifts, program design, its administrative structure and its demonstrated ability to manage
the block grant.

http://www.dpw.state.pa.us/ucmprd/groups/webcontent/documents/document/p_012580.pdf

TENNESSEE
Health and Wellness Task Force to tackle obesity

On March 8, 2012, Tennessee Gov. Bill Haslam announced that tackling obesity will be the focus of the
Governors Health and Wellness Task Force. The Task Force has made the state's obesity epidemic its
primary focus and is convening community leaders to devise an action plan.

The task force will work to partner with and fortify efforts already underway by organizations such as
the YMCA, the Coordinated School Health Program, the Tennessee Obesity Task Force and local health
departments, encourage new efforts by the business community, and bring coordination and consensus
to these efforts.

More than 1.5 million adult Tennesseans or nearly 32 percent are obese, according to the America
Health Rankings report, and data from 2009 showed nearly 30 percent of K-12 schoolchildren surveyed
are overweight or obese.

Tennessees status in the Americas Health Rankings report has recently moved in a positive direction
from 42nd to 39th in the overall rankings but we still have some critical areas in which we have work
to do, Haslam said during a meeting of the Tennessee Chief Medical Officer Society. We as a state
must encourage healthy behaviors and help make available healthy foods and safe, accessible places to
exercise, and I look forward to working with the task force in this effort.

Haslam announced the 16 members of the task force last October and tasked them with developing an
initiative to improve the states health status.

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The health of Tennesseans is a quality of life issue and also an economic issue. Complications from
obesity cause significantly higher direct medical costs, numbers of days absent from work and loss of
productivity at work, according to the Centers for Disease Control and Prevention.

For the full text of this announcement: http://news.tn.gov/node/8504

UTAH
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.

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.

Gov. Herbert Op-Ed
The statehouse, not White House, should lead on health reform
Washington Times July 31, 2012

The full title of what most call Obamacare is the Patient Protection and Affordable Care Act (PPACA).
The irony is it neither protects patients nor is it affordable. In fact, PPACA is a misguided budget-buster
that falls short of real health care reform, undermines state solvency and subverts individual liberty. For
those reasons, Utah is in no rush to adopt any Medicaid expansion and will continue to pursue
pragmatic, principle-based reforms, regardless of elections or Congress partisan balance.

Of course, we care about better health and an improved system, but its breathtaking that in order to
comply with the individual mandate for insurance, just covering Utahns presently eligible for Medicaid
but not yet enrolled will cost the state $940 million the first decade and $1.88 billion the next decade.
Then the Medicaid expansion tacks on an additional $240 million the first decade, and $480 million the
next. In other words, even if Utah does nothing, Obamacare will completely unravel our states uniquely
positive financial outlook.

Utah has defined a clear vision for health care: We will pioneer health care innovation and reform,
harnessing the power of collective efforts and market principles as we become the healthiest people in
the nation. Our efforts include solutions for low-income, uninsured and vulnerable populations.
But in contrast to federal solutions, the philosophical framework for Utahs vision is personal
responsibility. Reform must align incentives and empower people to make better choices and reward
them when they do. Most importantly, reform must reinforce basic principles of free markets
principles like flexibility and certainty. PPACA stifles both.

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Washington appears to have forgotten that Medicaid is supposed to be a bridge, not a hammock. To
that end, Utah has proposed thoughtful and potent Medicaid waivers to deliver care to the most
vulnerable while protecting the programs long-term viability. Our goal is to help people in need but
prepare and empower them as their situation improves.

Yet it is those most vulnerable those whom Obamacare professes to protect who will be most
victimized by shrinking access to eligible providers, and hidden taxes and regulation that drive up the
costs of life-saving medical devices.

Utah continues to use and explore customized reforms like greater flexibility, accountable care
organizations and paying for quality instead of quantity, cost-controlling features, electronic records
management systems like Utahs Clinical Health Information Exchange, a market-oriented health
insurance exchange, and our All Payer Claims Database. True reform adds real value.

At this time of economic uncertainty, Obamacare will effectively kill every states efforts to maintain
balanced budgets all at the sacrifice of other critical priorities. Right now, Medicaid consumes 21.5
percent of Utahs budget, nearly double what it was a decade ago. Adopting the expansion could cost
Utah $1.3 billion over the next 10 years. Where will that money come from? Take no consolation in false
assurances that the federal government will offset costs. It all comes from the same wallet the
American taxpayers and alarming federal deficits should be a major concern for every one of us.

If we truly want to cut costs, the administration should cut strings attached to Medicaid and issue block
grants to states. Give me less money and no strings, and Ill deliver better services.

PPACA has too many rules and too few answers. Unfortunately, the Supreme Courts ruling has only
exacerbated marketplace uncertainty. Restoring market confidence and stability will come when we
strike the right balance between costs and benefits, between compassion and dependence, and
between freedom and accountability.

Unfortunately, with its top-down, one-size-fits all approach, Obamacare doesnt really fit anybody. At
this juncture, as states assess their options, it comes down to this: The statehouse, not the White House,
should be leading the charge on one of the most complex issues of our day. It is time to reset the health
reform conversation, and repeal and replace PPACA with state-driven, people-centered and market-
oriented innovations. States simply cannot afford the Affordable Care Act, and neither can the American
people.

Read the Op-Ed here: http://www.washingtontimes.com/news/2012/jul/31/the-statehouse-not-white-
house-should-lead-on-heal/

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Chapter 5: Balancing State Budgets: Funding State Priorities, Providing Tax
Relief, and Living within States Means

Budgets, more than ever, are driving state and federal policy. Republican governors are setting
priorities and balancing budgets without raising taxes by reducing spending and finding efficiencies. 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.

States featured in this chapter include:
GEORGIA Governor Nathan Deal, Jobs and Families Tax Reform Package
INDIANA Governor Mitch Daniels, Returns State Surplus to Taxpayers and Invests in State
Pension Funds
INDIANA Governor Mitch Daniels, State Reduces Debt by More Than Half in Eight Years
KANSAS Governor Sam Brownback, Pro-Growth Tax Reform
MICHIGAN Governor Rick Snyder, 2013 Budget Provides More Funding for Education,
Personal Tax Relief
NEBRASKA Governor Dave Heineman, Middle Class Tax Relief
NORTH DAKOTA Governor Jack Dalrymple, Projected $2 Billion Surplus by 2013
OHIO Governor John Kasich, HB487: Management Efficiency
TENNESSEE Governor Bill Haslam Cuts Taxes on Food, Inheritance, Gifts
TEXAS Governor Rick Perry, Rainy Day Fund to Hit $7.3 Billion in 2013
VIRGINIA Governor Bob McDonnell, Three Straight Years of Surplus
WISCONSIN Governor Scott Walker, Budget Repair Bill

Other Resources:
State Budget Solutions, Reality-Based Budgeting: How to permanently resolve state budget
gaps
State Budget Solutions, 2012 State Debt Report
Tax Foundation, 2013 State Business Tax Climate Index
Tax Foundation, State Individual Income Tax Rates, 2000-2012

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GEORGIA
Jobs and Families Tax Reform Package

On April 19, 2012 Gov. Nathan Deal signed into law House Bill 386, the Georgia Jobs and Family Tax
Reform Plan, which cuts taxes for all Georgians and covers multiple types of tax eliminations.

Key reforms of HB 386 include:
Eliminates the state sales tax on energy used in manufacturing.
Reduces the marriage penalty in our income tax code by cutting income taxes for married
couples.
Eliminates the birthday tax on motor vehicles.
Reinstates sales tax holidays for back-to-school and green energy purchases.
Revises sales tax exemptions on agriculture to ensure fairness and consistency.
Curtails abuse in our conservation easement income tax credit program for donation of
conservation easements while maintaining this credit program.
Caps retirement income exclusion for seniors at current level of $65,000 ($130,000 per couple).
Eliminates sales tax exemption for film productions.
Creates a 1 percent sales tax exemption on commercial aviation fuel to make Georgia fuel rates
more competitive with other major airports.

For the full text of this announcement: http://georgia.gov/blog/2012-04-20/governor-deal-signs-new-
tax-reform-bill

INDIANA
Returns State Surplus to Taxpayers and Invests in State Pension Funds

On October 4, 2012, Governor Mitch Daniels announced how $360 million will be split among five
employee pension funds, their share of the proceeds from the first automatic taxpayer refund, the
governors plan to return taxpayer dollars to Hoosiers when the states reserves exceed a certain
threshold.

Many pension funds in other states are headed for massive defaults, but not here. Our state police,
conservation, excise and gaming officers, judges, prosecutors and teachers deserve rock-solid,
retirement security in return for their dutiful and often sacrificed public service. Indianas pension funds,
among the best-funded anywhere, are now in even better condition, said Daniels.

The $360 million the pension funds will share is half of the budget surplus. The other $360 million will be
returned to taxpayers when they file tax returns in 2013. The refund will be in excess of $100 for a single
filer or $200 for a joint return. The exact amount will be determined later this month.

The five pensions and contribution amounts are:
Judges Pension Fund, $90,187,160
Conservation, Gaming, and Excise Officers Pension Fund, $14,619,112
Prosecutors Pension Fund, $17,363,392

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State Police Pension Fund, $31,674,103
Pre-1996 Teachers Retirement Fund, $206,796,233

Total: $360,640,000

Indiana closed the 2012 Fiscal Year with reserves of $2.155 billion or 15 percent of the states budget. In
2011, the Indiana General Assembly approved the governors plan for an automatic taxpayer refund if
the states reserves exceeded 10 percent at the end of the budget year that ended on June 30. In future
years, the reserve threshold will be 12.5 percent.

Indiana fiscal facts during the Daniels administration:
Indiana has its first Triple-A credit rating
Indiana's expenditures have grown at less than one-quarter of the rate of the previous decade
Indiana has the fewest state employees per capita in the country
Indiana has paid down previous debt 46 percent
o Indiana repaid more than $750 million of debt previously owed to schools, universities
and local governments
o Indiana repaid a $63 million loan to the Motor Vehicle Highway Fund that originated in
the 1990s
o Indiana paid off the 50-year-old bonds on the Indiana Toll Road, almost $200 million
worth
Indiana has the third lowest debt per capita for state governments (State Budget Solutions,
August 2012)
Indiana has the second lowest debt per private sector worker (State Budget Solutions)
Indiana has the third lowest debt as a percentage of gross domestic product (State Budget
Solutions)
Indiana has the lowest burden per household to fully fund public pensions in the country (The
Revenue Demands of Public Employees Pension Promises, Robert Novy-Marx, University of
Rochester and NBER and Joshua D. Rauh, Kellogg School of Management and NBER, June 2011,
updated May 2012)
o Indiana has the smallest unfunded liability per capita for retiree health care of any state
(Bloomberg, Pew Center on the States, U.S. Census)
o At 6.75 percent, Indiana's pensions have the most conservative investment return
assumptions of any state and is the only state below 7 percent (National Association of
State Retirement Administrators)
Indianas combined pension and long-term debt liability as a percentage of GDP is the 2nd
lowest in the country (Moodys, January 2011)

http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=59374&information_id
=119819&type=&syndicate=syndicate

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INDIANA
State Reduces Debt by More than Half in Eight Years

On October 17, 2012, Governor Mitch Daniels ceremonially burned the mortgages of 10 state facilities,
including the Government Center South and North buildings, announcing the buildings have been paid
off with bond reduction payments totaling $147 million.

Since January 2005, the state has reduced its outstanding debt from $3.6 billion to $1.7 billion, a
decrease of more than 50 percent. Indianas debt situation the third lowest debt per capita for state
governments -- is in stark contrast to other states struggling with their fiscal conditions.

In recent years, the total debt level for all other states has increased by 35 percent, and that doesnt
count their massive unfunded pensions burden, said Daniels. Here in Indiana, by cutting our debt
more than half, we have freed up millions of future revenue for better uses, and told the job creators of
the world that here is one place of low taxes and fiscal stability.

The governor thanked legislators and state employees who have achieved costs savings and efficiencies
for taxpayers. Major contributors to the states debt reduction include:

$244 million in revenue collections from the tax amnesty program of 2005-06
Immediately paying off $198 million in Indiana Toll Road bonds with proceeds from the lease of
the Indiana Toll Road
$266 million in savings from outsourcing functions such as food services in correctional facilities
and printing and mail services for state government employees
Daniels said the most important contributions have come from the day-in, day-out ideas of state
employees, such as combining spending on common items to better leverage the states
purchasing power, renegotiating contracts for products and services, and developing better
billing and collection procedures.

State debt includes facilities such as buildings, prisons, hospitals and parks; state highway debt; Toll
Road debt; payment delays to schools, universities and local governments; and Bureau of Motor
Vehicles.

The debt on these facilities in Indianapolis previously scheduled to be retired in 2015, was retired early:
Indiana Government Center South
Indiana Government Center North
Senate Street Parking Garage
Washington Street Parking Garage
White River State Park

The debt on these facilities was scheduled to be retired in 2020, but was retired early:
Pendleton Juvenile Correctional Facility
Rockville Correctional Facility

And the debt also was retired on these facilities, previously scheduled for 2032 or 2033:
McCarty Street Warehouse, Indianapolis

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PEN Products Warehouse, Plainfield
New Castle Correctional Facility Annex, New Castle
The state reduced the debt early because it was able to utilize current appropriations and
surplus funds, including savings from the refinancing of various bonds. Even after these
repayments, the Office of Management and Budget is forecasting fiscal year-end reserves in
excess of $2 billion again next June.

Governor Daniels actions eliminated about $68 million that otherwise would have needed to be spent
in the 2014-15 budget, in addition to nearly $125 million that would have needed to be spent between
2016 and 2033. The effective interest rates on the McCarty Street Warehouse and PEN Products facility,
entered about 10 years ago, were 16.2 percent and 14.9 percent, respectively.

http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=59696&information_id
=120466&type=&syndicate=syndicate

KANSAS
Governor Sam Brownback
Pro-Growth Tax Reform

In May 2012, Governor Sam Brownback signed one of the largest tax relief measures in Kansas history
into law. The new law cuts state income tax rates for all hard-working Kansans by 14 to 24 percent and
eliminates state income taxes on more than 191,000 small business owners.

Governor Brownback likened Senate Sub. for House Bill 2117 to a shot of adrenaline into the heart of
the Kansas economy.

The law collapses the current three-bracket structure for individual state income taxes (3.5, 6.25 and
6.45 percent respectively) into a two-bracket system using rates of 3.0 and 4.9 percent. The business
income exemption eliminates certain non-wage business income for small business owners (income
reported by LLCs, Subchapter-S Corporations, and sole proprietorships on lines 12, 17, and 18 of federal
form 1040).

The law also flattens the tax structure and increases the standard deduction amount for single head-of-
household filers from $4,500 to $9,000; and for married taxpayers filing jointly from $6,000 to $9,000.

Dynamic projections show the new law will result in 22,900 new jobs, give $2 billion more in disposable
income to Kansans and increase population by 35,740, all in addition to the normal growth rate of the
state.

Kansas Revenue Secretary Nick Jordan said the new law will leave $1.1 billion in Kansans pockets during
the next two years to save, spend and invest.

"After the lost decade for jobs in Kansas, Governor Brownback has been incredibly focused on creating a
pro-growth environment that will increase Kansas families' income and accelerate small business

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growth," Jordan said. "This focus has turned the budget deficit he inherited into a strong surplus, and,
with historic tax relief now in place, Kansas is poised to lead America's economic recovery."

For the full text of the release: http://governor.ks.gov/media-room/media-
releases/2012/05/22/governor-brownback-signs-pro-growth-tax-legislation

MICHIGAN
Governor Rick Snyder
2013 Budget provides more funding for education, personal tax relief

On June 26, 2012, Gov. Rick Snyder signed legislation enacting Michigan's fiscal year 2013 budget, which
invests in key priorities and helps to ensure the state's long-term stability. This is the second year in a
row that the governor and his legislative partners have delivered a structurally balanced budget well in
advance of the fall deadline.

Specific highlights of the 2013 budget include:
A total budget of $49 billion in state and federal revenue sources, with more than 75 percent
devoted to education and health and human services.

A deposit of $140 million to the Budget Stabilization Fund (rainy day fund) that brings the fund
balance to $504.9 million, the largest fund balance in more than 10 years. The balance was just
$2.2 million in 2010.

Personal income tax relief that reduces the income tax rate from 4.35 percent to 4.25 percent
effective Oct. 1, ahead of the originally scheduled date of Jan. 1, 2013. The personal exemption
will increase from $3,700 per person to $3,950 per person on Oct.1.

A 3 percent increase in funding for community colleges and universities with performance
metrics that keep college tuition down.

An overall increase of $200.5 million in K-12 education funding when compared to current
spending, with performance funding and best practices included.

Equity payments totaling $80 million for school districts with the lowest foundation allowances,
raising the foundation floor from $6,846 per pupil to $6,966 per pupil and further closing the
gap between the lowest and highest foundation allowance districts.

"This balanced, thoughtful and timely budget ensures that taxpayers get value for their money," Snyder
said. "It continues the sound financial principles we adopted last year that now allow us to make
strategic investments in our state's future. We'll be a stronger Michigan because of it. Let's build on this
achievement by moving forward with relentless positive action so that Michigan becomes a national
model of job creation, innovation and prosperity."

For full text of the release: http://www.michigan.gov/snyder/0,4668,7-277--281316--,00.html

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NEBRASKA
Governor Dave Heineman
Middle Class Tax Relief

In April 2012, Gov. Dave Heineman signed LB 970 into law, which provides tax relief for hard-working,
middle class Nebraskans. The Governors plan provides $97 million in tax relief over three years.

LB 970 provides individual income tax relief by lowering the rate of the lowest three income tax brackets
in 2013. In 2014, tax brackets will be expanded in a way that will include greater amounts of income
being taxed at the lower rate.

For taxable years beginning on or after January 1, 2013, the brackets and rates are as follows:

Bracket Number Single Individuals Married, Filing Jointly Tax Rate
1 $0-2,999 $0-5,999 2.42%
2 $3,000-18,249 $6,000-36,499 3.40%
3 $18,250-29,999 $36,500-59,999 4.90%
4 $30,000 and Over $60,000 and Over 6.70%

Additionally, Gov. Heineman signed three economic development bills into law, aimed at continuing to
improve Nebraskas competitive edge for job creation.

LB 830 provides a sales and use tax exemption for biochips, used for the purposes of conducting
genotyping or the analysis of gene expression, protein expression, genomic sequencing, or protein
profiling of plants, animals, or nonhuman laboratory research model organisms.

LB 872 reduces the income tax burden of Nebraska-based business that provides services to customers
in other states. Additionally, the bill changes the method for corporate income tax for the sales of
services or intangible property, except for sales of a communications company.

LB 1080 amends the revenue code to provide a personal property tax exemption and a sales and use tax
exemption for tangible personal property that is assembled, engineered, processed, fabricated,
manufactured into, attached to, or incorporated into other tangible property, both in component form
or that of an assembled product, for the subsequent use at a physical location outside this state. These
exemptions are only available to a person operating a data center, for which a definition is provided in
the bill.

My highest priority for this legislative session has been tax relief for Nebraskas hard-working, middle
class taxpayers, said Gov. Heineman. While I believe there should have been more tax relief provided
to Nebraskans, I view this bill as the beginning of future efforts that will allow Nebraskans to keep more
of their hard earned dollars.

For more information: http://www.governor.nebraska.gov/news/2012/04/10_tax_relief.html

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NORTH DAKOTA
Governor Jack Dalrymple
Projected $2 Billion Surplus by 2013

On June 19, 2012, the North Dakota Office of Management and Budget announced that the states
budget forecast is projected to surpass $2 Billion in June 2013. The total surplus calculation is derived
from five separate funds: General fund ($848,879,945), Budget stabilization fund ($386,351,110), Legacy
fund ($351,974,105), Foundation aid stabilization fund ($204,034,265), and Property tax relief
sustainability fund ($261,828,006).

Governor Dalrymple credits the surplus and solid financial situation to, following a strategic plan for
economic development; building the strongest business climate possible; and establishing effective tools
like the Department of Commerce and the North Dakota Trade Office, combined with good fiscal
discipline and a solid partnership with the private sector.

For the full budget report: http://www.nd.gov/omb/docs/budget-section-6-19-12.pdf

Press
North Dakota Surplus to Hit $2 Billion within a Year
By Pamela M. Prah June 21, 2012
Stateline

North Dakotas billion-dollar surplus just keeps getting bigger.

Thanks in large part to a boom in oil production, the states budget reserves are expected to top $2
billion by the end of June 30, 2013, the end of the two-year budget cycle, according to new figures
released earlier this week by the state Office of Management and Budget.

Broken down by category, the state expects to have a surplus of almost $850 million in its general
treasury in June 2013. In March 2012, the prediction was $592 million, The Associated Press reported.

Another $1.2 billion is now in four reserve funds. Specifically, a budget rainy-day fund currently has $386
million; an oil tax trust fund has $352 million; a school aid fund has $204 million; and a fund for local
property tax relief has $261.8 million, according to the report OMB Director Pam Sharp provided to
lawmakers on June 19, 2012.

For the full text of the article: http://www.pewstates.org/projects/stateline/headlines/north-dakota-
surplus-to-hit-2-billion-within-a-year-85899400065

OHIO
HB 487: Management Efficiency

Governor Kasichs Administration conducted a top-to bottom review of state government operations
referred to as the Mid-Biennium Review (MBR). The product of this effort was a 3,400-page package of
reforms building on last years success and furthering efforts to create a jobs-friendly climate in Ohio by,

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among other things, boosting education and workforce training programs, streamlining and improving
management of government agencies and establishing a first-of-its-kind state energy policy.

Management and Budget for Government Program and Health System Operations
As a key component of the MBR, Gov. Kasich instructed his cabinet directors to carefully analyze
spending and seek reductions wherever possible. Instead of imposing an across-the-board cut, the
governor urged a thoughtful review of the circumstances of individual state agencies. As a result,
agencies identified significant General Revenue Fund (GRF) and non-GRF savings, and HB 487 as enacted
produces an overall reduction in spending for FY2013. The majority of the Management Efficiency Plan
(MEP) was included in House Bill 487, and contains a number of appropriation changes related to
proposed program reforms. While increases in a few agency programs were also identified to meet
unanticipated needs, the result has been a net reduction in agency appropriations in FY2013.

Program Rationalization and Reform
Items in the MEP will improve state programs and regulations, consolidate duplicative efforts and
remove unnecessary bureaucracy in ways that save taxpayers money and make government more
efficient. A few examples:

School Facilities/State Architect: Merging the State Architects Office with the School Facilities
Commission into a new Facilities Construction Commission will reduce costs and align related
authority and resources within a single, responsive commission with oversight responsibility for
all state non-transportation construction.
Eliminating Duplication and Improving Efforts to Protect the Environment: Consolidating two
Department of Natural Resources programs recycling/litter prevention and scrap tire
regulation into closely related programs in the Ohio EPA will create a more efficient, less costly
state program for material and waste management, while opening better opportunities to
leverage matching grant programs.
Reducing Costs to Administer Drivers License Examinations: Transferring license examinations
from the Highway Patrol to the Bureau of Motor Vehicles and consolidating part-time
examination stations with full-time Deputy Registrar offices will yield immediate, long-term cost
savings and improve customer service.
Giving County Job and Family Service Agencies the Option of Cost-Saving
Consolidation: Expanding the authority to consolidate operations of county Departments of Job
and Family Services (CDJFS) from three pilot counties to the entire state will allow every CDJFS
to optimize public services and reduce costs.
Consolidating Regulation of Manufactured Home Parks: Combining related responsibilities now
held by the Department of Health and a separate Manufactured Homes Commission under the
authority of the Commission will improve oversight and free up funds for the Department of
Health to meet other critical needs.

Better Services, Better Operations, Better Value
The MEP implements a large number of program improvements and updates to help state agencies
provide better services to Ohioans who need them and better value to taxpayers. Highlights include:

Aligning Assisted Living Eligibility Requirements: By eliminating residency requirements for
eligibility in the Home First program, this provision corresponds with similar changes to assisted
living waiver requirements made in HB 153.

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Helping Counties Better Manage Community-Based Programs for Juvenile Offenders: Improving
formulas for determining how the Department of Youth Services distributes funding to Ohio
counties through its RECLAIM Ohio program will provide more stability and predictability for
local planning efforts.
Strengthening Protections for Ohioans Receiving Home- and Community-Based Health-Care
Services: Current laws for criminal background checks and past convictions for home health
care workers are inconsistent, making it possible for dangerous criminals to potentially work
with vulnerable Ohioans who receive health care at home from private contractors or who are
driven to and from medical appointments by private medical transport contractors. The MEP
resolves gaps and inconsistences to create tough, uniform standards that will protect vulnerable
Ohioans.
Making it Easier for State Agencies to Communicate with Ohioans: The MEP tears down several
barriers in order to make it easier for state agencies to communicate electronically with
Ohioans, instead of current outdated and more costly methods.

Better Health System Performance
Targeted improvements in Ohios health and human services programs build on the major reforms of
the Jobs Budget to enhance program performance, create better health outcomes for individuals and
provide employers with a healthier workforce.

Pay for PerformancePromoting Better Health Outcomes for Ohioans: The Administration
worked closely with hospitals when writing the Jobs Budget to adopt payment reforms for
Medicaid inpatient hospital reimbursement. The MEP will expand this effort by linking some of
the funds in the hospital reimbursement pool to meeting or exceeding new quality benchmarks.
This pay-for-performance initiative will ensure that available funds are distributed to hospitals
and promote better health outcomes for individuals in hospital settings.
Targeting Regional "Hot SpotsInvesting in Most-Needed Mental Health Services: The Ohio
Department of Mental Health has initiated a new funding approach that targets hot spots in
the system and rewards local innovation and collaboration. The MEP allocates $3 million in
additional resources to fund community mental health services that will create better outcomes
for high-cost and difficult-to-serve populations. The new process has garnered support of
advocates representing consumers and families.
Enhancing Statewide Data SharingTearing Down Walls Between Agencies: Current law
requires the state agencies that administer health and human services to enter into
cumbersome agreements just to share basic data that is needed to inform decisions and
implement program improvements. The MEP will authorize the sharing of data, personnel,
funding, and other operating resources among designated state agencies in support of cross-
agency work for health transformation purposes. The language will facilitate the seamless and
efficient implementation of health transformation activities.
Simplifying Eligibility Determination Systems: Current eligibility processes for health and human
services in Ohio are fragmented, overly complex and rely on outdated technology, resulting in
duplication, inefficiency and excessive cost for state and local governments. The MEP language
extends the authority granted in the Jobs Budget to simplify Medicaid eligibility systems to
federal entitlement programs other than Medicaid.

http://governor.ohio.gov/docs/HB%20487_Management%20Efficiency_FINAL.pdf

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TENNESSEE
Cuts Taxes on Food, Inheritance, Gifts

Grocery Tax
On June 4, 2012, Tennessee Gov. Bill Haslam signed legislation to reduce the state portion of the sales
tax on groceries from 5.5 percent to 5.25 percent. His plan is to reduce it next year to 5.0 percent.

Haslam held a ceremonial bill signing at the locally- and independently-owned Smith Bros. Grocery in
Whitwell, Tenn.

Were focused on making state government more efficient and more effective while reducing the cost
to taxpayers, Haslam said. The sales tax on food touches all Tennesseans, and this is an effort to lower
the burden. I applaud the General Assembly for passing this important piece of legislation this year.

The bill, SB 3763/HB 3761, was introduced by the governor and was one of three tax cuts passed by the
legislature and signed by Haslam this year as the state continues its work toward providing the best
customer service at the lowest possible cost to taxpayers.

Haslam included $21.3 million in the FY 2012-2013 state budget to fund the legislation.

The reduced tax rate does not apply to prepared foods such as a meal at a restaurant, candy, alcoholic
beverages or tobacco.

For the full text of this announcement: https://news.tn.gov/node/8956

Inheritance Tax
On June 6, 2012, Gov. Bill Haslam highlighted the second of three tax cuts passed during this years
legislative session and signed by the governor.

Haslam held a ceremonial bill signing of HB 3760/SB 3762, which phases out the state inheritance tax
during the next three years before it is completely eliminated starting January 1, 2016.

The bill was introduced by the governor as the state continues its work toward providing the best
customer service at the lowest possible cost to Tennesseans.

Jobs are created when people invest capital. The inheritance tax is causing Tennesseans to take their
capital to other states as they grow older, but businesses and family farms cant pick up and leave.
Eliminating this tax will ease the burden on family businesses and farms that are left to other
generations, Haslam said.

The exemption level will be lifted to $1.25 million in 2013; $2 million in 2014; and $5 million in 2015.

Haslam included $14.2 million in the FY 2012-2013 state budget to fund the legislation.

For the full text of this announcement: http://news.tn.gov/node/8968

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Gift Tax
In May 2012, Governor Haslam signed Senate Bill 2777/House Bill 2840, which repeals Tennessee's tax
on gifts effective January 1, 2012. This means taxpayers giving gifts currently taxed in accordance with
Tenn. Code Annotated Section 67-8-101 will not be subject to gift tax.

For more information: http://www.tn.gov/revenue/tntaxes/gift.shtml

TEXAS
Governor Rick Perry
Rainy Day Fund to Hit $7.3 Billion in 2013

In February 2012, Texas Rainy Day Fund exceeded $6 Billion and is expected to reach $7 Billion by 2013,
according to the Office of the Comptroller.

In Governor Rick Perrys Texas Budget Compact, he articulates the importance of a strong Rainy Day
Fund stating, An important facet of fiscal responsibility is ensuring the state is financially able to cope
with unforeseen events. An adequate Rainy Day Fund is critical to our ability to respond to and recover
from disasters and emergencies, whether they're natural or man-made. A healthy fund also helps us
maintain a strong bond rating.

For more information on the Texas Budget Compact:
http://governor.state.tx.us/news/noteworthy/17278/

Press
Rainy Day Fund grows; Comptroller's Office cites rebounding economy
By Enrique Rangel February 21, 2012
Lubbock Online

A rebounding state economy has increased the Texas Rainy Day Fund from $5 billion to $6.1 billion
since last year. If this growth continues, the savings account should grow to $7.3 billion by the end of
fiscal 2013, said the states chief revenue estimator.

The fund gets its revenue from oil and gas taxes. High energy prices in recent years have allowed the
fund to replenish quickly after the Legislature taps into it to cover shortfalls. Last year, lawmakers
covered a $3.4 billion deficit for the fiscal year ending Aug. 31.

In addition to the growing fund, since December 2009, the state has added 444,000 jobs, regaining the
433,000 jobs it lost during the 2008 recession, said John Heleman of the Texas Comptrollers Office.

Rising new car sales and more consumer spending have allowed Texas to weather the economic
downturn better than other states.

Read the full article here: http://lubbockonline.com/local-news/2012-02-21/rainy-day-fund-grows-
comptrollers-office-cites-rebounding-economy#.UFjAfrKPVX1

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VIRGINIA
Three Straight Years of Surplus

On August 15, 2012, Governor Bob McDonnell announced that Virginia has posted a total revenue and
savings surplus of $448.5 million dollars for FY 2012. The surplus follows the Commonwealth's $544.8
million surplus in FY 2011 and $403.3 million surplus for FY 2010. The total FY 2012 surplus consists of
the previously announced revenue surplus of $129.2 million along with $187.0 million in state agency
savings and agency balances, and $132.3 million in higher education and other unexpended non-general
funds.

For fiscal year 2012, total general fund collections, including revenues and transfers, exceeded the
official forecast by $129.2 million. General fund revenues rose 5.4 percent in FY 2012 compared with the
budget forecast of 4.5 percent. At the same time, Virginia's efforts to reform state government and
make it function more efficiently have also produced savings. The administration directed managers to
innovate, be frugal, and not spend all their appropriations at the end of the fiscal year just because they
had the money. Thus, on the savings side, there was $319.3 million in unspent general fund
appropriations, recoveries and non-general fund balances at the end of June. This compares favorably to
the $234.1 million savings at the end of fiscal year 2011.

The Constitution, the Appropriation Act, and the Code of Virginia specify how most of these additional
resources must be assigned. An additional $78.3 million must be set aside for deposit to the Revenue
Stabilization Fund for FY 2014 bringing the Rainy Day Fund balance to approximately $689.0 million at
the end of the biennium, the highest balance since FY 2008. Another $30.0 million is designated for
deposit to the Federal Action Contingency Trust Fund as a reserve to help Virginia mitigate the
consequences of potential sequestration and other negative federal actions that could adversely affect
Virginia's economy and future revenue collections.

In addition, Virginia will be able to meet several other contingent requirements in statute and in the
Appropriation Act. The Commonwealth will return $132.3 million to higher education and non-general
fund accounts where it properly belongs. Another $16.9 million will be allocated to the Virginia Water
Quality Fund to meet Virginia's obligations under the Watershed Improvement Plan to accelerate efforts
to clean up the Chesapeake Bay. Virginia will also return $20.9 million to the Transportation Trust Fund
to properly account for transportation's share of the accelerated sales tax collections received in June.
An additional $17.2 million will be set aside to cover the state's share of obligations resulting from
several natural disasters occurring over the course of FY 2012.


WISCONSIN
Governor Scott Walker
Budget Repair Bill

In January 2011, the State of Wisconsin faced a state budget deficit of $3.6 billion. According to the PEW
Center on the States Wisconsin was a state in fiscal peril. Per capita, Wisconsin had one of the largest

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deficits in the nation at $3.6 billion. In mid-2010, Wisconsins fiscal health was the fifth worst in the
nation according to the Wisconsin Taxpayers Alliance. Only Illinois, California, New York, and
Connecticut were worse.

To make matters worse, the state faced millions in outstanding bills created by poor fiscal management
in the past. Bills and fund raids totaling over $800 million had piled up. Wisconsin owed Minnesota a
$60 million tax payment. An unconstitutional raid of $200 million from the Injured Patients and Family
Compensation Fund by the previous administration had to be paid back. These bills were accruing
interest every day.

Other states across the nation faced similar challenges. Some states responded with massive tax
increases, while other states sharply reduced government services. To move Wisconsin forward,
Governor Walker chose a third, better way. He proposed structural reforms that would help maintain
services, respect the taxpayers, and end wasteful spending.

Reforms
Structural Reform 2011 Wisconsin Act 10
To deal with the fiscal crisis Wisconsin faced, Governor Walker chose to do something truly innovative:
reduce government spending, while giving government increased flexibility to provide services.

Wisconsin spends more than $14 billion annually in state general purpose revenue. More than half of
that money is spent on assistance to local governments such as schools, counties, and municipalities.
Much of this goes to personnel costs which rise as high as 75 to 80 percent on average in school
districts. In order to reduce state spending state aids to local governments also had to be reduced.

The Governors reforms allowed state and local government to save millions of dollars by utilizing the
cost-savings of the free-market system and competitively bidding on their health insurance programs,
curbing over-time abuses, aligning staff with service needs, and asking employees to contribute a
portion toward their pension and health insurance.

The reforms also allowed government to reward employees and make staffing decisions based on merit,
not union contracts.

Controlling Property Taxes
Governor Walkers reforms have controlled Wisconsins property taxes. Since 1998, property taxes for
the median-value property taxpayer have risen 43 percent. In 2010, property taxes as a percentage of
personal income rose to their highest level since 1996. The budget and reforms protected property
taxpayers by preventing an increase of over $700 per homeowner. In fact, for the first time in over a
decade the median-value property taxpayer saw their taxes go down.

The most notable savings for taxpayers occurred with school districts. Tax levy numbers for the 2011-12
school year show the total tax levy is down more than $47 million for K-12 schools. This is only the
second time the total school tax levy has dropped since 1996.

Over the previous five years the school tax levy, on average, increased by $220 million each year. When
compared to the status quo of the last five years, Governor Walkers reforms are keeping an extra $300
million in Wisconsin property taxpayers pockets from school district levy savings.

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Ending Wasteful Spending
Governor Walkers reforms went beyond the budget and have ended other wasteful practices that cost
taxpayers millions. Collectively bargaining abuses such as stacking overtime hours to inflate salaries at
our state correctional institutions are now gone, which is estimated to save taxpayers $5 million
annually. For decades, these had been protected by union contracts. Wisconsin can now pay for
performance and eliminate seniority in overtime which will save millions more. The new reforms were
put in place January 2012 and have already reduced overtime at the Department of Corrections by
$2,108,556 in just three months compared to the previous year.

Results
The results of Governor Walkers budget and budget reforms are clear. The budget was rated credit
positive by Moodys while other states such as Minnesota and Illinois saw their credit rating
downgraded. After years of billion dollar deficits, Wisconsin passed a budget that projected a surplus.

Instead of double digit tax increases, Governor Walker held the line on taxes that threaten Wisconsins
economic growth. In 2010, ten percent of employers said Wisconsin was on the right path. Now, after
Governor Walkers reforms, 94 percent say the state is on the right path. Wisconsins unemployment
rate of 6.8 percent is now at its lowest level since 2008. Governor Walkers reforms have saved
taxpayers over $1 billion, improved education, and made government more efficient.

Saving Taxpayers Over $1 Billion
Documented savings show statewide Governor Walkers reforms are saving taxpayers over $1 billion
dollars annually and other estimates place that total much higher. Media reports, local budgets, and
surveys have shown state aid reductions have more than been made up by savings related to Act 10 in
jurisdictions that used Governor Walkers tools.

The Legislative Fiscal Bureau has estimated pension savings alone over the biennium saving school
districts nearly $600 million without including savings on health insurance.

School districts that reported competitively bidding out their health insurance plan with modest design
changes saved $220 saved per pupil per year on average.

These savings do not include uncollected data from health insurance savings at CESAs, special districts,
68 percent of school districts, and many local governments in Wisconsin.

Extending the documented savings experienced from school districts that are documented, would add
an additional $100 million of taxpayer savings.

Improving Education
The Governors reforms are also improving education in the state, particularly in the districts utilizing
the tools that are now available to them. According to a survey by the Wisconsin Association of School
District Administrators (WASDA) released by the Department of Public Instruction:
New teacher hires outnumber layoffs and non-renewals by 1,799 positions
Roughly three quarters of K-6 grades have the same class sizes or are decreasing them
Extracurriculars are protected with 92 percent of districts keeping sports programs the same or
expanding them

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Comparing the 2011-12 WASDA/DPI survey with recently uncovered surveys conducted by the
Wisconsin Education Association Council (WEAC) and WASDA show districts are facing the best financial
and educational outlook in at least a decade. This new ability to compare current data with historical
data shows dramatically positive trends for school districts overall.

For the full text of this memo: http://www.wisgov.state.wi.us/Documents/Act_10_Success_Recap.pdf

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Chapter 6: Promoting Responsible and Efficient 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.

States featured in this chapter include:
ALABAMA Governor Robert Bentley, Road to a Billion Dollars in Savings
ARIZONA Governor Jan Brewer, Personnel Reform for State Workforce, Mirrors Private Sector
ARIZONA Governor Jan Brewer, Government Transformation Office
FLORIDA Governor Rick Scott, Office of Fiscal Accountability and Regulatory Reform
IOWA Governor Terry Branstad, Executive Order: Working To Cut Red Tape
IOWA Governor Terry Branstad, State Web Design Standard
IOWA Governor Terry Branstad, Executive Order Allowing State Employees to Voluntarily Pay
20 percent of Health Insurance Premiums
IOWA Governor Terry Branstad, Public Information Board
LOUISIANA Governor Bobby Jindal, Signs Landmark Pension Reform Law
OKLAHOMA Governor Mary Fallin, Reducing Unfunded Liability for Public Pensions
OKLAHOMA Governor Mary Fallin, Savings through Energy Efficiency
OKLAHOMA Governor Mary Fallin, Tobacco Use Ban on State Property
OKLAHOMA Governor Mary Fallin, IT Modernization and Consolidation
OKLAHOMA Governor Mary Fallin, State Government Administrative Services Consolidation
SOUTH DAKOTA Governor Dennis Daugaard, Governors Initiative Cuts Red Tape
TENNESSEE Governor Bill Haslam, Transforms state government to recruit, retain and reward
employees
UTAH Governor Gary Herbert, Utah Business Regulation Review
VIRGINIA Governor Bob McDonnell, Task Force for Local Government Mandate Review
VIRGINIA Governor Bob McDonnell, Virginia Pension Reforms Are Credit Positive
VIRGINIA Governor Bob McDonnell, Regulatory Reform Initiative
WYOMING Governor Matt Mead, Streamlining State Government and Early Adoption of
Technologies

Other Resources:
National Conference of State Legislatures, Highlights of State Pension Reform in 2012
Pew Center on the States, The Widening Gap Update June 2012
RGPPC, Pension Reform Catalogue
State Budget Solutions, Why government employee collective bargaining laws must be
reformed now

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ALABAMA
Governor Robert Bentley
Road to a Billion Dollars in Savings

On July 19, 2012, Governor Robert Bentley announced the State of Alabama is on track to reach one
billion dollars in annual savings thanks to extensive efforts to reduce costs and increase government
efficiency.

The long-term savings effort contains a series of initiatives led by Governor Bentley. Moving forward,
Governor Bentley and legislative leaders are committed to building on their collaboration and
identifying further savings to reach the billion-dollar savings goal by the end of the current term.

Based on fiscal notes and conservative estimates from the Alabama Department of Finance, Governor
Bentley and legislators have already taken action to realize nearly $675 million in current and projected
savings. The total reflects savings through the following initiatives:

2011 Pension Reform Measures: $181.5 million (annual savings)
2012 Pension Reform Measures: $164.1 million (average annual savings)
Workforce Right-Sizing: $181.3 million (annual savings)
SEIB/PEEHIP Reform: $61.3 million (average annual savings)
DROP Repeal: $58.5 million (annual savings)
Indigent Defense Reform: $19.4 million (annual savings)
Various Bond Refinancing: $8.3 million average per year (Nearly $93 million total over the
life of the bonds)

Total Current and Projected Savings: $674.4 million
Remaining Goal: $325.6 million

The largest portion of savings comes from Governor Bentleys efforts to bring the states retirement
system more in line with the private sector. Below are a few examples of Alabamas pension reforms
implemented in 2012 for new hires that begin work in 2013 or later:
A minimum retirement age of 62 for most state employees.
o Currently, anyone may retire once vested (10 years of service) at age 60 or with 25 years
of service at any age. The reform proposals set a minimum retirement age of 62.
Law Enforcement Minimum retirement age of 56.
Adjust pension payments from an average of the highest-paid 3 years out of the last 10 years of
service to an average of the highest 5 years.
In exchange for the restructuring of benefits, new hires would see their employee contribution
rate changed from 7.5 percent to 6.0 percent. This will increase their take-home pay.
Total estimated savings over 30 years: $5.03 Billion
Average annual savings over 30 years: $162 Million

The savings are part of a long-term effort to right-size Alabama government. The current and projected
savings benefit both the Education Trust Fund and the General Fund budgets. While Alabama still faces
budget challenges, these savings have so far helped the state avoid hundreds of millions of dollars in
reductions to essential state agencies and services. Governor Bentley and legislative leaders are
committed to enacting further savings to build upon these efforts and make government more efficient.

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For the full text of this announcement: http://governor.alabama.gov/news/news_detail.aspx?ID=6768

ARIZONA
Governor Jan Brewer
Personnel Reform for State Workforce, Mirrors Private Sector

On May 10, 2012, Governor Jan Brewer signed into law a historic reform governing the State workforce,
modernizing the way in which State government manages, hires and fires employees. The measure, HB
2571, was a critical component of the Governors policy agenda during the recently-concluded
legislative session.

Among changes incorporated as part of the new law, State managers will be able to act more quickly
when it comes to hiring the most talented applicants, rewarding the best workers or disciplining
underperforming employees without excessive bureaucracy and levels of unnecessary review. The new
personnel system will address a series of challenges confronting State government, namely its need to:
Remain productive by being able to do more with less;
Attract top talent into the workforce; and
Discontinue providing job security and protection for inefficient and unproductive workers.

The legislation maintains core principles that guard against partisan political coercion of state
employees and prohibit discrimination based upon race, color, national origin, gender, age, disability or
religion.

HB 2571 resulted from a collaborative process that the Governors Office and the Arizona Department of
Administration undertook over the last 18 months. Extensive research has been completed and
numerous stakeholder meetings have been conducted with law enforcement and other groups in order
to consider all aspects and potential ramifications of this significant change to the State personnel
system.

This legislation addresses these challenges with the current system and brings State government into a
competitive position with other employers attaining a position of productivity, efficiency and
accountability.

http://azgovernor.gov/dms/upload/PR_051012_PersonnelSigned.pdf

ARIZONA
Governor Jan Brewer
Government Transformation Office

Governor Jan Brewer on August 16, 2012, signed an Executive Order establishing the Government
Transformation Office as part of an ongoing effort to improve and modernize State government
operations.

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Housed within the Arizona Department of Administration, the Government Transformation Office will
improve government processes by identifying best practices that eliminate inefficiencies and
redundancies and increase the quality of services provided to Arizona taxpayers. Specifically, the
Government Transformation Office will assist agencies in: identifying and implementing process
improvements; training supervisors in management strategies that eliminate waste and enhance
innovation within the workforce; developing consistent toolkits, resources and other materials for
agency use; and communicating process improvements to the public, among other tasks.

In conjunction with the establishment of the Government Transformation Office, Governor Brewer has
created a Government Transformation Committee to guide and oversee the Offices operations and
conduct regular performance reviews of State agencies. The Committee will consist of the Arizona State
Treasurer, a Director or designee of six major agencies and two representatives from the private sector.
Arizona taxpayers deserve a State government committed to maximizing every dollar spent on their
behalf, said State Treasurer Doug Ducey. This Government Transformation Office and Committee will
create an extra measure of accountability while ensuring all State agencies are focused on
improvements that will ultimately translate into savings.

Key to the Government Transformation effort will be the injection of private-sector innovations into
State operations and services. Abdul Mansour, Director of Process Improvements for Scottsdale
Healthcare, is one of two private-sector representatives named to the Government Transformation
Committee.

The Lean methodology advocated by the Government Transformation Office has already begun to show
benefits. For example: the Arizona Department of Environmental Quality is employing these strategies
to dramatically reduce the timeframe required for issuance of Title V air-quality permits. Rather than
having these permits reviewed by one staff member after another the paperwork shuttled from office
to office, day after day the new process calls for each of the needed personnel to gather together with
the applicant for a single meeting. What was routinely a 60-day administrative review process can now
be completed in a one-hour session.

http://azgovernor.gov/dms/upload/PR_081512_GTO.pdf

FLORIDA
Governor Rick Scott
Office of Fiscal Accountability and Regulatory Reform

On Day One of Governor Rick Scotts Administration, he signed Executive Order No. 11-01: Suspending
Rulemaking and Establishing the Office of Fiscal Accountability and Regulatory Reform.

Summary: Executive Order No. 11-01 freezes all new regulations and establishes the Office of Fiscal
Accountability and Regulatory Reform, which will review all rules prior to promulgation as well as agency
practices and contracts.
Immediately suspends rulemaking for all agencies under the direction of the Governor.

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Establishes the Office of Fiscal Accountability and Regulatory Reform to review all rules
(including those suspended by the Order) prior to promulgation and to review agency
practices and contracts.
Imposes 90-day suspension on execution of any contracts with a value in excess of $1
million, without prior approval from the Office.
Prohibits agencies from promulgating rules unless they obtain prior approval from the
Office.
Find complete text of the EO here: http://www.flgov.com/wp-
content/uploads/2011/01/scott.eo_.one_.pdf

On August 16, 2011, in a 5-2 ruling the Florida Supreme Court stated that the governor had
"overstepped his constitutional authority and violated the separation of powers" and that such rule-
making authority lies with the legislature. An excerpt from the Majority opinion states:
the Governors executive orders at issue here, to the extent each suspends and
terminates rulemaking by precluding notice publication and other compliance with
Chapter 120 absent prior approval from OFARRcontrary to the Administrative
Procedure Actinfringe upon the very process of rulemaking and encroach upon the
Legislatures delegation of its rulemaking power as set forth in the Florida Statutes.

For the full text of the decision: http://www.floridasupremecourt.org/decisions/2011/sc11-592.pdf

In response to the Florida Supreme Court ruling, Governor Scott issued Executive Order No. 11-211:
Office of Fiscal Accountability and Regulatory Reform.

Summary: Executive Order No. 11-211 narrows the power of Scott's Office of Fiscal Accountability and
Regulatory Reform (OFARR) "to the extent permitted by law"
Retains OFARR in the Executive office of the Governor for the purpose of reviewing
proposed and existing agency rules and regulations, making recommendations for altering
or simplifying aforementioned rules and regulations, etc.
Requires all agencies to submit in writing any proposed rule or amendment to OFARR at
least one week before submitting it for official publication

Find complete text of the new EO here: http://www.flgov.com/wp-content/uploads/orders/2011/11-
211-ofarr.pdf

Since the beginning of Gov. Scotts term, there have been approximately 1700 fewer regulations and the
State is beginning to encourage similar initiatives at the local level, where many businesses complain
about regulatory barriers.

IOWA
Executive Order: Working To Cut Red Tape

On August 20, 2012 Gov. Branstad and Lt. Gov. Kim Reynolds announced that the governor will be
signing Executive Order 80, which will enact greater public participation in the administrative rules
process.

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By signing Executive Order 80, agencies will create stakeholder rulemaking groups consisting of
individuals who can adequately represent the interests that will be significantly affecting by a draft rule
proposal or subject matter.

Rulemaking authorities will now work with those who will be affected by new regulations, and they will
be fully aware of the full consequences of each rule or regulation they look to put into effect.

Once formed, the stakeholder groups will then notify the public to their meetings, receive public
comment and input, and then make recommendations to the entity with rulemaking authority.

The governor added that this executive order is about injecting common-sense into the regulatory
process.

Our state will be well served by greater public participation and stakeholder input for regulation and
administrative rules, said Branstad. It is our hope that by giving stakeholders a stake in the process, we
can all work together to enact smart, better ways to administer rules and regulations.

Executive Order 79 rescinded 12 previous executive orders.

For full text of the release: https://governor.iowa.gov/2012/08/branstad-signs-executive-orders-79-80/

IOWA
State Web Design Standard

In March 2012, Gov. Terry E. Branstad and Lt. Gov. Kim Reynolds announced that the Website
Standardization Committee established by Executive Order 73 completed the necessary steps to
formulate Iowas first Web Design Standard. Iowas governmental departments and agencies are now
required to ensure that state of Iowa eGovernment information is from a citizen-centric viewpoint,
meets applicable federal standards for individuals with disabilities, and offers a user-friendly common
look, common feel and common navigation system.

The standard is found here: http://das.ite.iowa.gov/standards/documents/enterprise_web_design.pdf

The Website Standardization Committee was tasked with identifying innovative improvements that are
necessary for the states Web sites to more effectively and efficiently serve the people of Iowa with a
cohesive, user-friendly approach to online access, said Gov. Branstad. Currently, there is no common
thread to the states Web sites, and they vary greatly. As a result of this committees action, our state
government will offer a superior Web presence that is easier for Iowa taxpayers to use.

We are pleased to offer friendly, easy-to-use Web services for Iowans, said Lt. Gov. Reynolds. We
believe Iowa can be a national leader in offering the best online services to serve the needs of Iowans.
This is an exciting step forward for Iowans using our eGovernment services.

With a Web Design Standard in place, agencies and departments will now complete the following:

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1. Reinforce Iowa.gov identity and make it clear to users they are on an Iowa Executive Branch site
through the use of the designated sliver header; and
2. Provide consistency and continuity in Web site appearance; and
3. Improve the quality, usability and accessibility of State Web sites and services for the public; and
4. Ensure that critical state links appear on all agency sites; and
5. Integrate agency sites, Web applications and the portal, to support the one government
approach and move away from bureaucratic separation of information; and
6. Increase efficiency of Web site development and management by agencies; and
7. Compliant in meeting the federal 508 compliance standards to allow us to better serve the
widest possible audience, including people with disabilities.
8. Establish two Web Content Management Systems for use within all Executive Branch agencies.

For the full text of the release: https://governor.iowa.gov/2012/03/iowa-launches-first-ever-web-
design-standard-for-all-executive-branch-agency-web-sites/

IOWA
Executive Order Allowing State Employees to Voluntarily Pay 20 percent of Health Insurance
Premiums

In July 2012, Gov. Terry Branstad signed Executive Order 78, encouraging state workers to voluntarily
pay 20 percent of their health care insurance premium.

According to the Department of Administrative Services (DAS), 88 percent of state workers do not
contribute anything toward their health insurance premium, and in total, Iowa taxpayers fund 97 cents
of every one dollar spent on health care premiums.

The Executive Order states:

most of Iowas private sector workers pay part of their health care costs in the interest of fairness
to all working Iowans, many of whom pay both taxes and a significant amount toward their own health
insurance, state employees should share in the health care costs currently funded by Iowa taxpayers;
and state employees who willingly pay twenty percent of their health care costs will be good stewards
of taxpayer dollars, saving the State of Iowa taxpayer dollars and setting an example that state workers
serve the taxpayers.

To read the full text of Executive Order 78: https://governor.iowa.gov/wpcontent/uploads/2012/07/EO-
78.pdf

IOWA
Public Information Board

After languishing in the Iowa Legislature for years, Governor Branstad spearheaded the passage of
landmark transparency legislation to create a Public Information Board (with true enforcement powers)

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that will significantly improve the transparency of state and local government and ensure the
enforcement of Iowas open records and open meetings laws. The Board is composed of nine members
who were appointed by the Governor.

Press
Gov. Terry Branstad signs open-records bill into law; New Public Information Board could be
operational July 1
By Jason Noble May 3, 2012
Des Moines Register

A new state board committed to ensuring transparency in government and enforcing Iowas open-
records and open-meetings laws could be operating within months.

Gov. Terry Branstad on Thursday signed into law Senate File 430, a long-sought bill establishing the Iowa
Public Information Board. It passed the House and Senate last month.

The nine-member board will lead a state agency charged with mediating disputes between governments
and record-seekers and issuing rulings on alleged open-records and open-meetings violations. It will also
have enforcement powers including the ability to levy fines on lawbreakers that are currently lacking
from state law, Branstad and others said.

This is a new day for Iowans as we hold government at all levels in our state more accountable and
shed effective light on those activities, he said.

The board could be ready to operate on July 1, Branstad said, at the start of the states new fiscal year.
Although he didnt mention any names, the governor said he already had appointees in mind for the
board, which will consist of members suggested by media and local government groups as well as
unaffiliated Iowans.

The Public Information Board will have jurisdiction over much of state government as well as local
entities like cities, counties and school boards. But it will not have power over the governors office, the
Legislature or the state judiciary.

Branstad said those offices of government were immune to the boards scrutiny because of their basis in
the constitution. And the governors office might not want to opt into the boards purview, he added,
because of the potential for politicizing its role.

One of the things I think you dont want to do is get politics into this, he said. Thats one of the
reasons for having those three constitutional branches of government not be directly under the
jurisdiction of this board.

For the full text of the article: http://blogs.desmoinesregister.com/dmr/index.php/2012/05/03/gov-
terry-branstad-signs-open-records-bill-into-law-new-public-information-board-could-be-operational-
july-1

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LOUISIANA
Signs Landmark Pension Reform Law

In June 2012, Governor Bobby Jindal signed a landmark pension reform law that will create a cash-
balance plan for certain new state employees. Governor Jindal emphasized that the cash-balance plan
combines the best features of defined benefit and defined contribution plans and sets the stage for a
more sustainable retirement system. The legislation HB 61 was part of the Governors 2012
legislative package.

Under the cash-balance plan, participants receive an investment account that can never lose value. In
the good years, the participants share in investment gains. In the bad years, the participants are
protected from investment losses. Taxpayers bear less risk because the retirement benefit is tied to
market performance, and the pension system retains 1 percent from investment gains to act as a buffer
against investment losses. The cash-balance benefits are also portable meaning that a participant who
withdraws from state service after five years can take the entire account balance.

Governor Jindal said, This new law is a game-changer for Louisianas retirement systems. As the most
important piece of our pension reform package, the cash-balance plan will help get our debt under
control, protect taxpayers and provide new state employees with a portable retirement account that
realizes investment earnings.

Full the full text of the release:
http://gov.louisiana.gov/index.cfm?md=newsroom&tmp=detail&catID=2&articleID=3455&navID=12

OKLAHOMA
Reducing Unfunded Liability for Public Pensions

In 2011, Governor Mary Fallin signed several key pieces of pension reform legislation into law. The bills
aim to provide a boost to the fiscal solvency of the states public employee pension systems, which
started 2011 with $16 billion in unfunded liability.

One bill, HB 2132, reduces unfunded liability in state pensions by $5 billion by requiring the legislature
to provide a funding source for cost of living adjustments (COLAs).

In addition to HB 2132, Fallin also signed the following pension reform measures into law:
HB 1010: increasing the retirement age for new members of the Uniform Retirement System for
Justices and Judges (URSJJ) who started work after January 1st of this year. For new members
with 8 years of service, the measure increases the normal retirement age from 65 to 67 years
old. For new members with 10 years of service, the measure increases the normal retirement
age from 60 to 62 years old.
SB 377: Raising the normal retirement age for new teachers from 62 to 65 years of age and
establishing a minimum age of 60 for full retirement benefits for teachers who meet the rule of
90. Currently, there is no minimum age requirement for those employees whose age and service
equals the sum of 90.

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SB 794: Ensuring that elected officials are treated the same as other public employees when
calculating retirement benefits. Also, applying the same minimum retirement ages to all new
public employees as SB 377 does to new teachers: a minimum age of 60 when the rule of 90 is
met and a normal retirement age of 65.
SB 347: providing for the forfeiture of a municipal officer or employees retirement benefits
upon conviction of crimes related to their office (bribery, corruption. etc)


OKLAHOMA
Savings through Energy Efficiency

On May 8, 2012, Governor Fallin signed into law Senate Bill 1096, a bill that directs all state agencies and
higher education institutions to achieve at least 20 percent improvement in energy efficiency and
conservation by the year 2020. The governor first outlined the initiative in her Oklahoma First Energy
Plan and asked the Legislature this year in her State of the State address to write the plan into law.

SB 1096 creates the Oklahoma State Facilities Energy Conservation Program which sets a target for
cumulative energy savings of not less than twenty percent (20 percent) by the year 2020 when
compared to FY-12 utility expenditures. Additionally, the Director of State Finance is to oversee the
implementation of the program, including the selection of the most qualified vendor or vendors utilizing
a request for proposal to contract for the program.

All fees and funding related to the program, including any personnel compensation for persons
dedicated exclusively to program implementation, are to be paid through savings generated by reducing
energy costs.

Industry sources estimate cumulative savings have potential to reach an amount in excess of $300
million, with upside potential of $500 million in cumulative savings over a period of years.

http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=223&article_id=7347&utm_s
ource=Lagging+States&utm_campaign=Opportunity+Knocks&utm_medium=email

OKLAHOMA
Tobacco Use Ban on State Property

In February of 2012, Governor Fallin issued an executive order to prohibit tobacco use on all state-
owned and leased properties and in state-owned and leased buildings and vehicles. She also closed the
smoking room at the state Capitol and begun the process of developing a privately funded fitness center
for state employees.

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Governor Fallin said the purpose of the ban is to protect the health of employees and people visiting
state-owned properties. The ban also is intended to drive down one of the major factors of increasing
health care costs for state employees, decrease employee absenteeism and increase productivity. The
ban is expected to save the state $5.2 million annually.

Press
The Oklahoman: Oklahoma Gov. Mary Fallin signs order to ban tobacco use on state property
By Michael McNutt February 7, 2012
NewsOK

Tobacco products at all state-owned and leased properties and in state-owned and leased buildings and
vehicles will be banned effective July 1 under an executive order signed Monday by Gov. Mary Fallin.
The announcement drew applause, but groans were heard seconds later in the House of
Representatives chamber when she announced the ban would mean the closing of a smoking room in
the state Capitol for lawmakers and employees.

You're going to like this one, too, she joked as she announced the smoking room, in the Capitol's
basement, would be remodeled at no expense to the state into a small fitness center. The state is
seeking a grant from the Tobacco Settlement Endowment Trust and the Oklahoma Hospital Association
has agreed to match it, Fallin said.

The governor announced she had signed the tobacco ban during her State of the State speech to
lawmakers, which kicks off this year's four-month legislative session. She said its purpose is to protect
the health of employees and people visiting state-owned properties.

The ban also is intended to drive down one of the major factors of increasing health care costs for state
employees, decrease employee absenteeism and increase productivity, according to the governor's
office. The ban is expected to save the state $5.2 million annually.

Smoking is the No. 1 cause of death in Oklahoma and the U.S., the governor's office said. Fallin made the
ban effective several months from now to give state employees time to consider taking smoking
cessation programs.

It will be up to individual agencies to enforce the ban, said Alex Weintz, Fallin's communications
director. However, the governor's office hopes it will be largely self-enforced.


OKLAHOMA
IT Modernization and Consolidation

On May 24, 2011, Governor Fallin signed into law HB 1304 which directs all information technology
assets of all state-appropriated agencies to be transferred to the Information Services Division of the
Office of State Finance and the Chief Information Officer. This bill also transfers all employees of each

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agency with job titles and duties related to information technology to be transferred to the Information
Services Division.

Currently the State has 56 financial systems, 22 unique time and attendance systems, 17 imaging
systems, 48 reporting and analytics applications, 25 different desktop operating systems, 133 email
systems, and 27 SQL Server and Oracle systems. This bill normalizes systems, eliminates redundancy,
and creates efficiency and substantial cost savings.

The plan, which was included as part of Fallins executive budget, implements a freeze on capital
spending in IT that would save taxpayers $50 million in FY 2012. Further consolidating IT resources
across state agencies is expected to save an additional $142 million, for a total of $192 million in savings.

The consolidation of IT resources allows agencies to maintain the quality of the services they provide
and in many cases even improve these services at a lesser cost to taxpayers, said Fallin. Furthermore,
it injects a measure of accountability and fiscal transparency to IT spending and operations that are
currently spread out across a number of state agencies. The reforms included in HB 1304 are the
embodiment of the smaller, smarter government that conservative lawmakers have been promising our
citizens.

For the full text of the legislation: http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1304

OKLAHOMA
State Government Administrative Services Consolidation

On May 20, 2011 and May 8, 2012 Governor Fallin signed legislation (HB 2140/HB 3053) creating a one-
stop shop for benefits, state employee and administrative services by consolidating four state agencies
into the Office of State Finance and renamed it the Office of Management and Enterprise Services
(OMES).

In an effort to streamline services and achieve efficiencies. The following entities are now divisions of
OMES: Office of Personnel Management, Department of Central Services (State Procurement Agency),
Employee Benefits Council and the Oklahoma State and Education Employee Group Insurance
Board. The consolidation has resulted in streamlined services and cost efficiencies. The legislation
mandated a fifteen percent annual savings which was exceeded in the first year.

For the full text of HB 2140: http://www.oklegislature.gov/BillInfo.aspx?Bill=hb2140

For the full text of HB 3053: http://www.oklegislature.gov/BillInfo.aspx?Bill=HB3053&Tab=1

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SOUTH DAKOTA
Governors Initiative Cuts Red Tape

On July 1, 2012, a series of new laws took effect repealing more than 400 sections of South Dakota state
law that are unnecessary, out-of-date or too complex. These laws are a part of Gov. Dennis Daugaards
Better Government initiative.

In addition to those statutory changes, the Governor initiated the elimination of more than 1,100 state
government regulations through the administrative rules process.

Examples of rules and laws to be repealed include outdated banking provisions; burdensome insurance
regulations; redundant measures governing the construction and inspection of burial methods; and
information that was collected to obtain federal funds that no longer are appropriated.

For more details on sections of the code that were repealed by The Red Tape Review:
http://sd.gov/bettergovernment/review.aspx

The Red Tape Review is part of the Governors Better Government initiative to make state
government more open, efficient and accessible.

State government, unlike the federal government, strives to be as user-friendly as possible, Gov.
Daugaard said. I believe South Dakotans deserve the very best from their public servants, and we try to
fulfill that expectation. This is the first year of the Red Tape Review, but it wont be the last.

For more on Gov. Daugaards Better Government initiative: http://sd.gov/bettergovernment/

TENNESSEE
Transforms State Government to Recruit, Retain and Reward Employees

On April 24, 2012, Tennessee Gov. Bill Haslam signed the Tennessee Excellence, Accountability and
Management (TEAM) Act into law.

The TEAM Act calls for two divisions of state service: preferred service and executive service. Executive
service employees remain at-will as they currently serve. Preferred service replaces the traditional
career service designation and preserves a streamlined appeals process along with other
considerations.

Some of the changes to the state employment system made by the legislation include:
A new hiring system that requires agencies to define minimum qualifications and to identify
specific knowledge, skills, abilities and competencies required for each position.
Veterans and their spouses will receive interview preference for both appointments and
promotions, and if there are two candidates with equal qualifications, knowledge, skills, etc.,
preference will be given to the veteran.

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An overhaul of the states performance evaluation system to provide for performance standards
and expected outcomes that are Specific, Measurable, Achievable, Relevant and Time sensitive
(SMART goals).
In the event of a layoff, job performance becomes the primary consideration followed by
seniority, abilities and disciplinary record, which also must be considered.
A new nine-member board of appeals to conduct a streamlined, three-step appeals process.
And a mediation process will also be established by the Department of Human Resources
through rules.

State governments role is to provide services that Tennesseans arent able to get on their own, and I
believe it is my job to make sure were providing them in the most customer-focused, efficient and
effective way, Haslam said just before signing the bill into law. In the next five years, almost 40
percent of state employees will become eligible for retirement, and in facing this challenge, it is our
responsibility to build a top notch workforce for the future.

For decades, employment decisions in state government have been based solely on seniority with job
performance never being considered, and employees have either received modest, across the board pay
increases or nothing at all. No one has been able to convince me that is a good way to manage our
employees or serve our taxpayers. We have to do better. It is what hard working employees deserve and
what taxpayers expect.

For more information on the TEAM Act: http://tn.gov/governor/pdf/TEAMActRundown.pdf

UTAH
Utah Business Regulation Review

On December 6, 2011, Governor Gary Herbert announced the results of a report that studied the impact
of Utahs regulatory environment the Utah Business Regulation Review. The Report stemmed from the
Governor's 2011 State of the State address, where he directed all members of his Cabinet "...to review
existing business regulations and determine which should be kept, which should be modified, and which
will be eliminated" in order to encourage a regulatory environment which both protects Utahns and
does not hamstring business.

A total of 1,969 existing business regulations were reviewed. Each cabinet agency and other non-
cabinet state agencies participated in the review process.

As a result of the Report, 368 changes were made. Of these:
25 cut red tape by making current requirements on businesses less burdensome
84 provide increased clarification to businesses
18 improve business-agency interaction
31 remove obsolete rules or rule sections
35 facilitate rule simplification
15 permit electronic filing for those previously permitted only paper reporting
42 render state statutes and rules consistent
24 remove redundancies

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21 render federal and state rules consistent
19 repeal obsolete statutes
14 improve agency efficiency
11 render state rules consistent
7 level the playing field for businesses
6 allow license extensions for constituents
6 now narrowly interpret the authorizing statute
2 broaden programs to include more potential users
2 eased licensing requirements for licensees
2 extended the public process timeframe
2 extended tax credits for businesses
2 were unclassified

Read the full text of the report:
http://www.rules.utah.gov/reports/2011UtahBusinessRegulationReview.pdf

VIRGINIA
Task Force for Local Government Mandate Review

Governor Bob McDonnell on September 22, 2011 announced the creation of the Governor's Task Force
for Local Government Mandate Review. The five-member Task Force is a result of legislation introduced
during the 2011 General Assembly Session to review state mandates imposed on localities and to
recommend temporary suspension or permanent repeal of such mandates as appropriate.

In January 2012, the Governor's Task Force for Local Government Mandate Review submitted the first
interim report. The full report can be viewed here:
http://www.dhcd.virginia.gov/GovMandateReview/pdfs/FirstInterimReport.pdf

Specific recommendations included in the report were:

Judiciary
Remove ability for a Circuit Court to mandate localities to construct a new courthouse

Community Service Boards
Remove mandate that CSB contracts be for a maximum of one year and allows localities to
contract with CSBs for more than a one-year term

Education
Remove mandate that proceeds from education surplus property go to capital improvements
Clarify that state law does not mandate that notices be mailed to every parent on per pupil
educational costs
Remove mandates for various local education advisory committees
Remove mandate for annual report on remediation programs
Remove mandate for civics trainings for teachers

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Remove mandate that libraries send Internet policies to the Librarian of Virginia (the
requirement that libraries continue to have policies that prohibit access to inappropriate
Internet materials will remain)
Remove mandate that local school boards must apply for a waiver from the state to start school
before Labor Day
The administration will also request that the Department of Education identify burdensome or
unnecessary state statutory and federal data collection and reporting requirements and submit
recommendations to the governor and General Assembly on ones to eliminate or consolidate
with a goal of reducing reporting requirements by 15 percent

Environmental
Remove mandate for state inspections of erosion and sediment control programs where
localities have inspections

FOIA & Public Notices
Eliminate mandates to publish RFPs in newspapers
Increase FOIA response times

Procurement
Remove mandates that prevent localities from creating their own procurement guidelines
Raise the threshold for mandatory competitive negotiation of professional services contracted
by localities
Eliminate mandate for pre-sale requirements of local surplus property
Eliminate mandate for localities to give first priority for vending contracts to the Department of
Blind and Visually Impaired
Increase threshold for mandatory due diligence on unclaimed property

Land Use and Transportation
Eliminate mandate that requires Urban Development Area reports documents be submitted to
the state Commission on Local Government
Eliminate the mandate for state approval for leases on airport property
Eliminate mandate that requires VDOT approval of the location of locally-placed red light
camera

Speaking about the task force, Governor McDonnell remarked, "Virginia's local governments deserve
accountability and partnership from state government leaders. Burdensome mandates on localities
exacerbate the challenge of balancing a budget in these tight fiscal times. On the state level, we don't
like it when the federal government hamstrings us with mandates and red tape. Unnecessary or over-
reaching mandates are just as detrimental to local governments. This legislation is an important step
forward and I applaud the Task Force for Local Mandate Review for working across party and geographic
lines to develop these recommendations. We will continue to identify unfunded mandates on both the
state and local level as well as examples of federal government overreach that prevent Virginia's
government from focusing on the core functions of government."

Additionally, City Councilwoman Alicia Hughes of Alexandria and City Councilwoman Suzy H. Kelly of
Chesapeake will serve as the Government Reform Commission liaisons to the Task Force.


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VIRGINIA
Virginia Pension Reforms Are Credit Positive

In April 2012, Virginia Governor Robert McDonnell signed legislation that makes several changes to the
Virginia Retirement System (VRS), which the state estimates will reduce its pension contributions by
$3.6 billion over the next 21 years. The changes build on reforms the Commonwealth of Virginia enacted
in 2010 and 2011 and put it on a more sustainable path to fully funding its pension commitments, which
is credit positive. Virginias legislation also reflects an ongoing trend among states to find flexibilities in
their retirement systems to rein in their long-term liabilities.

The Virginia legislation establishes a hybrid pension/401(k)-style contribution plan for new state and
local employees and reduces benefits for unvested state employees. In addition to lower annual
employer contributions, the measures affecting pensions lower total unfunded liabilities for state and
local employee plans by nearly $9 billion by 2031.

State and local employees in the new hybrid plan will pay 4 percent of their salaries toward the pension
defined benefit component and 1 percent of their salaries into the defined contribution component of
the plan. Employers will pay a mandatory 1 percent to the defined contribution component, and will
match up to 3.5 percent for employees who make the maximum allowable contributions of 9 percent of
salary. The hybrid retirement plan will be mandatory for new state and local government employees
beginning 1 January 2014, except for police, firefighters and other public safety first responders. Current
employees will have the option to join the new hybrid plan.

In the new law, cost of living adjustments (COLA) for employees with fewer than 20 years of service who
retire early are deferred until their normal retirement date. For non-vested employees and new
employees starting on 1 January 2013, the reform caps COLAs at 3 percent per year and slightly reduces
the formula used to set the pension amount (except for public safety employees). Average final
compensation for all employees will be calculated based on the highest 60 months of salary, rather than
the current 36 months.

The governor has also made amendments to companion pension legislation that the legislature will
consider on 18 April. It includes a requirement that local government employees contribute 5 percent of
their salaries toward retirement. The mandatory contribution is offset by a pay raise from the localities,
which can phase-in the requirement and the pay raise over five years.

http://www.governor.virginia.gov/utility/docs/VA%20pension%20reforms%20are%20credit%20positive.
pdf

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VIRGINIA
Regulatory Reform Initiative

On October 22
nd
, 2012, Governor Bob McDonnell announced the launch of the Governor's Regulatory
Reform initiative and creation of a new portal for citizens to submit ideas for regulatory reform.

Governor McDonnell has also charged regulatory agencies to conduct a comprehensive review of
regulations currently in place and repeal regulations that are unnecessary or no longer in use, reduce
unnecessary regulatory burdens on individuals, businesses, and other regulated groups, and identify
statutes that require unnecessary or overly burdensome regulations. The initiative is an extension of
Governor McDonnell's efforts as Attorney General to eliminate unnecessary and burdensome
regulations through his Task Force on Regulatory and Government Reform. The task force made more
than 300 recommendations to streamline Virginia's Administrative Code, and reduce burdensome
government regulation.

Speaking about the launch, Governor McDonnell said, "While the regulations contained in the Virginia
Administrative Code are important parts of ensuring the safety and well-being of Virginians, these
regulations can sometimes also be unnecessarily burdensome on the people and job creators of the
Commonwealth. Unnecessary administrative burdens hamper job creation by Virginia employers. Smart
regulatory reform will produce a freer and better environment for citizens and businesses. The initiative
launched today will result in a reduction in unnecessary regulations and regulatory burdens, and I look
forward to receiving recommendations from citizens and business people who understand firsthand the
intended and unintended consequences of regulations." Governor McDonnell continued, "All regulatory
activity should be undertaken with the least possible intrusion in the lives of the citizens of the
Commonwealth consistent with protecting the health, safety, and welfare of the people of Virginia.
Proposed and final regulations should make state government more efficient and should make Virginia a
better place to live and work."

As part of this initiative, Governor McDonnell welcomes recommendations from citizens and
stakeholders regarding regulations that are overly burdensome and where reform is appropriate. They
may submit their recommendations, here: www.RegReform.Virginia.Gov.

For the full text of release: http://www.governor.virginia.gov/News/viewRelease.cfm?id=1469

WYOMING
Governor Matt Mead
Streamlining State Government and Early Adoption of Technologies

On June 22, 2011, Governor Matt Mead announced that Wyoming became the first state in the country
to switch to Google Apps for Government and that all 10,000 of Wyomings state employees had
migrated to Google Apps for Government. This put all of the employees on a single email platform for
the first time. Previously the state used more than 13 different platforms. This change saves Wyoming
over a million dollars per year and allows for more efficient collaboration and communication between
state employees.

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Governor Mead views technology as a focus of his efforts to streamline state government. In March
2012, he signed a bill into law that consolidated state governments common Information Technology
Services and staff into one agency, Enterprise Technology Services.

Another tool Governor Mead used to improve government efficiency was the consolidation. He
combined two government agenciesthe Department of Employment and the Department of
Workforce Services. This benefited citizens as it provided a single stop for the public and reduce
confusion for those seeking help in relation to employment.

For the full text of this release:
http://governor.wy.gov/media/pressReleases/Pages/WyomingistheFirstStateintheCountrytoGoGoogle.a
spx

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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:
GEORGIA Governor Nathan Deal, Criminal Justice Reform
IOWA Governor Terry Branstad, Moves to Prevent the Release of Dangerous Murderers
IOWA Governor Terry Branstad, Countering Bullying
IOWA Governor Terry Branstad, Kadyns Law
NEW JERSEY Governor Chris Christie, Bipartisan Mandatory Drug Court Law
OHIO Governor John Kasich, Collateral Sanctions
OHIO Governor John Kasich, Human Trafficking Task Force
OHIO Governor John Kasich, Fight Against Drug Trafficking
OKLAHOMA Governor Mary Fallin, Statewide Public Safety Plan
PENNSYLVANIA Governor Tom Corbett, Justice Reinvestment Initiative
TENNESSEE Governor Bill Haslam, Unveils Comprehensive Public Safety Strategy
TENNESSEE Governor Bill Haslam, Statewide anti-meth campaign
TENNESSEE Governor Bill Haslam signs bill to outlaw synthetic drugs
VIRGINIA Governor Bob McDonnell Public Safety Agenda

Other Resources:
Pew States, State of Recidivism: The Revolving Door of Americas Prisons

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GEORGIA
Criminal Justice Reform

In May 2012, Gov. Nathan Deal signed into law historic reforms in the states criminal justice system. HB
1176 will revolutionize how Georgia punishes nonviolent crimes by seeking alternative treatments
where possible and preserving expensive prison beds for offenders who pose a danger to society.

With this bold new direction in criminal justice, we will bolster public safety, increase our chances of
rehabilitating lives and bend the unsustainable cost curve we face in our prison system, Deal said. We
spend $1.2 billion a year on our prison system and those costs were set to soar far beyond what we can
afford. That makes no sense for taxpayers when there are most cost-effective means that have better
outcomes.

Since 1990, Georgias prison population has more than doubled to nearly 56,000 inmates. Today, the
state spends over $1 billion annually on corrections. Despite this growth, Georgia taxpayers have not
received a sufficient public safety return on their corrections dollars, with the recidivism rate the
proportion of inmates who are reconvicted within three years of release remaining unchanged at
nearly 30 percent during the past decade. If current sentencing and corrections policies remain in place,
Georgias prison population is projected to grow by 8 percent by 2016, presenting the state with the
need to spend an additional $264 million to expand capacity.

This legislation was based on the recommendations of the bipartisan, inter-branch Special Council on
Criminal Justice Reform for Georgians (the Council), which was created by the legislature in the 2011
session. Over the past nine months, the Council conducted an in-depth analysis of the states
sentencing and corrections data, audited state policies, solicited input from a wide range of
stakeholders, and submitted a report of their findings and recommendations to the legislature.

The Council found that drug and property offenders account for almost 60 percent of all prison
admissions. In 2010, more than 5,000 lower-risk drug and property offenders with no prison history
were sent to prison, accounting for 25 percent of all admissions. The Council found that because there
are limited community-based options and accountability courts, judges have few viable sentencing
options other than prison. In addition, probation and parole agencies need the authority and resources
to effectively supervise offenders in the community.

The legislation will avert all the projected growth in prison population and costs during the next five
years, saving taxpayers an estimated $264 million. Further, the Council recommended reinvesting a
portion of these averted costs into proven practices that improve public safety and hold offenders
accountable. Governor Deals budget proposes such investments, including: $10 million for
accountability courts and $5.7 million for new Residential Substance Abuse Treatment (RSAT) centers to
expand access to programming and reduce the backlog of offenders in local jails.

The legislation will NOT reduce the sentences for any serious violent felonies (commonly known as the
seven deadly sins) or decriminalize or legalize any controlled substance. The bill focuses on improving
Georgias public safety performance in four major areas:

1. Reduces Recidivism by Strengthening Probation

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2. Improves Community-Based Options Such as Accountability Courts
3. Focuses Prison Beds on Serious Offenders
4. Improves Government Performance

The Criminal Justice Reform Council worked all year, receiving input from all corners of the state, and I
have asked the members to continue their work through this year to explore other areas for reforms.
The result was a piece of legislation with support so deep that it passed unanimously in both chambers
of the Legislature. This will pay dividends to taxpayers over and over, from the reduced cost to our
prison system to the increase in the number of people who return to the workforce and support their
families.

For more information about Georgias criminal justice reforms:
http://www.legis.ga.gov/Documents/GACouncilReport-FINALDRAFT.pdf

For the full text of the release: http://gov.georgia.gov/press-releases/2012-05-02/deal-signs-criminal-
justice-reform

IOWA
Moves to Prevent the Release of Dangerous Murderers

In July 2012, Gov. Terry Branstad took action to prevent the release of dangerous murderers in light of
the Miller v. Alabama United States Supreme Court decision, where the Court ruled that states cannot
mandate life sentences without the possibility of parole for murderers who committed their crimes
before the age of eighteen.

The Supreme Courts ruling allowed up to 38 dangerous juvenile murderers in Iowa to seek resentencing
and more lenient sentences.

In compliance with the U.S. Supreme Court decision, Gov. Branstad commuted the life without parole
sentences to life with the possibility of parole only after 60 years in prison for the 38 people who were
convicted of first degree murder while a juvenile.

Justice is a balance and these commutations ensure that justice is balanced with punishment for those
vicious crimes and taking into account public safety, said Branstad. First degree murder is an
intentional and premeditated crime and those who are found guilty are dangerous and should be kept
off the streets and out of our communities.

For the full text of the release: https://governor.iowa.gov/2012/07/branstad-moves-to-prevent-the-
release-of-dangerous-murderers-in-light-of-recent-u-s-supreme-court-decision/

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IOWA
Countering Bullying

The Iowa Department of Education, Iowa Department of Public Safety, Iowa Civil Rights Commission,
Office of The Attorney General Tom Miller, and Office of The Governor Terry Branstad are working in
partnership to provide information and resources to Iowans on the topic of bullying and cyber-bullying.

A 2011 study by the Pew Research Center on Teens and Social Media found that 88% of social media-
using teens have witnessed other people being mean or cruel on social networking sites and 15% of
social media-using teens say they have been the victim of online meanness. Another study in 2009
sponsored by the National Center for Education Statistics who conducted the National Crime
Victimization Survey / School Crime Supplement found that 28 percent of 12-18 year old students stated
they had been bullied at school during the school year and 6 percent stated they had been victims of
cyber-bullying.

In light of the alarming statistics, Iowa agencies formed a partnership to continue to educate Iowans and
to provide necessary resources to address bullying and cyber-bullying. The state provided resources to
every school district in the State of Iowa, including links to websites containing teaching materials,
presentations, safety education kits, and other information for school use in educating Iowa students. In
addition, the Iowa Internet Crimes against Children Task Force and Iowa State Patrol Safety Education
Officers (SEOs) are available to provide presentations at Iowa schools on the topics of bullying, cyber-
bullying, internet safety, and others. Contact information for the SEOs was provided to all Iowa school
districts so they may arrange for these presentations when it fits with their curriculum.

In August 2012, Gov. Terry Branstad and Lt. Gov. Kim Reynolds announced that they will host the
Governors Bullying Prevention Summit in November 2012, and encouraged all Iowans to engage on the
important issue of bullying prevention.

The summit will be held on Nov. 27, at Hy-Vee Hall in Des Moines, and will feature a number of speakers
from Iowa communities who will present their strategies at the summit. Also featured will be state and
national experts about how to combat bullying, both offline and online.

Dr. Paul Gausman, superintendent of Sioux City Schools, joined Branstad and Reynolds at the news
conference. He will talk about community involvement and efforts his community has taken to combat
bullying.

The luncheon speaker will be Rosalind Wiseman, whose book became the basis of the movie, Mean
Girls.

Registration will begin in September, and further details will be announced as that date gets closer.

We believe we can, and we must, do more to stand up against bullying in Iowa, said Branstad. Iowans
have a well-deserved reputation for neighborliness. Lets leverage that tradition to put an end to
bullying because all children deserve to feel safe at school.

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In the most recent Iowa Youth Survey of students in grades six, eight and 11, half of those surveyed
reported being bullied in some way, and most youngsters witness the bullying of their peers sooner or
later.

For more information: https://governor.iowa.gov/2012/08/branstad-reynolds-announce-upcoming-
governor%E2%80%99s-bullying-prevention-summit/

IOWA
Bullying Prevention Summit

In August 2012, Gov. Terry Branstad and Lt. Gov. Kim Reynolds announced that they will host the
Governors Bullying Prevention Summit in November 2012, and encouraged all Iowans to engage on the
important issue of bullying prevention.

The summit will be held on Nov. 27, at Hy-Vee Hall in Des Moines, and will feature a number of speakers
from Iowa communities who will present their strategies at the summit. Also featured will be state and
national experts about how to combat bullying, both offline and online.

Dr. Paul Gausman, superintendent of Sioux City Schools, joined Branstad and Reynolds at the news
conference. He will talk about community involvement and efforts his community has taken to combat
bullying.

The luncheon speaker will be Rosalind Wiseman, whose book became the basis of the movie, Mean
Girls.

Registration will begin in September, and further details will be announced as that date gets closer.

We believe we can, and we must, do more to stand up against bullying in Iowa, said Branstad. Iowans
have a well-deserved reputation for neighborliness. Lets leverage that tradition to put an end to
bullying because all children deserve to feel safe at school.

In the most recent Iowa Youth Survey of students in grades six, eight and 11, half of those surveyed
reported being bullied in some way, and most youngsters witness the bullying of their peers sooner or
later.

For more information: https://governor.iowa.gov/2012/08/branstad-reynolds-announce-upcoming-
governor%E2%80%99s-bullying-prevention-summit/

IOWA
Kadyns Law

On March 16, 2012, Gov. Terry Branstad signed Kadyns Law at Northwood Elementary School, the
school which Kadyn Halverson attended. The bill has been dubbed Kadyns Law by Kadyns family and

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friends who have lobbied legislators for tougher penalties on those who illegally pass stopped school
buses. Kadyn Halverson was killed in May of 2011 after a driver illegally passed a stopped school bus.
The bill passed both the Iowa House and Iowa Senate unanimously.

Provisions of the bill:
Harsher penalties for drivers who illegally pass stopped school buses or buses with their amber
lights flashing went into effect on August 15, 2012.
A first offense fine is at least $250 and up to $675, and a violator can be sent to jail for up to 30
days. A second offense within five years is a serious misdemeanor, with fines ranging from $315
to $1,875 and a jail term up to a year.
The state must undertake a public education campaign to raise awareness about the law and its
penalties.

For the text of the release: https://governor.iowa.gov/2012/03/gov-branstad-to-sign-
%E2%80%9Ckadyn%E2%80%99s-law%E2%80%9D-friday-at-northwood-elementary-school/

NEW JERSEY
Bipartisan Mandatory Drug Court Law

Governor Chris Christie followed through on his commitment to take a smarter and more effective
approach in how the state treats drug-addicted offenders by signing into law landmark, bipartisan
legislation to put in place a statewide, mandatory drug court program. The legislation, S-881, acts on the
principles laid out by Governor Christie in his 2012 State of the State Address that no life is disposable
and that it is a commonsense, fiscal, and moral imperative to help individuals dealing with drug
addiction reclaim their lives with treatment, rather than warehousing them in prison.

Working in a bipartisan manner with the legislature to move forward on this critical issue, Governor
Christie secured passage of this legislation that enables a statewide, mandatory drug court program to
be implemented over the course of 5 years. Beginning one year after the enactment of the bill, the
Administrative Director of the Courts will select 3 vicinages to begin the expansion, followed by the
addition of 3 vicinages each year over the period of phase-in.

The Governors plan for drug court expansion was first announced in his 2012 State of the State Address
and reaffirmed in his Fiscal Year 2013 Budget Address when he called drug addiction a treatable disease
and dedicated an additional $2.5 million in funding for program expansion. That funding was secured in
the Fiscal Year 2013 Budget signed into law by the Governor in June.

The program builds on the success of New Jerseys highly successful drug court program, by expanding it
to provide mandatory treatment for drug-addicted offenders throughout all 21 New Jersey counties.
While effective, the existing program only accommodates 1,400 new participants per year. As a
voluntary program, it fails to overcome the biggest obstacle to addiction treatment denial.

According to their October 2010 Drug Court Report, the rate at which drug court graduates are re-
arrested for a new indictable offense is 16% and the reconviction rate is 8%. This is compared to re-
arrest rates for drug offenders released from prison that stands at 54% with a re-conviction rate of 43%.

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According to that report, an average institutional cost per inmate is approximately $38,900, whereas the
cost for an active drug court participant is roughly $11,379.

Under this legislation, mandatory participation in a drug treatment program for eligible nonviolent,
drug-addicted offenders could be sentenced by a judge, regardless of whether they apply for admission
to the drug court program.

The law also requires that within one year following the effective date, and annually for five years
thereafter, the Administrative Director of the Courts must submit an evaluation of the program to the
Governor and the Legislature. The report will include completion and recidivism rates, implementation
costs, and any other information relevant to the success of the program.

In addition, the legislation provides for:

Increased identification of eligible drug addicted nonviolent offenders. As part of this effort,
information on drug addiction and treatment would be required to be given to those charged
with second and third drug degree offenses.
Court ordered clinical assessment to determine suitability for drug court. Pre-sentencing reports
would be required to include information regarding drug addiction and recommendations
regarding whether an assessment should be ordered for a defendant.
Courts to make a finding regarding addiction for any offender having a clinical assessment. If
offenders are found to be drug addicted, meeting present drug court eligibility factors and are
prison bound, then those offenders would be sentenced to the drug court program regardless of
their desire to enter the program.
Judges to be given ultimate discretion in determining whether an individual poses a threat to
society and should not be sent to a drug treatment facility as part of his or her sentencing.
For the full text of the release: http://nj.gov/governor/news/news/552012/approved/20120719c.html

OHIO
Collateral Sanctions

In June 2011, Governor Kasich signed legislation overhauling Ohios criminal justice system creating
sentencing reforms to make Ohios communities safer by putting first-time, non-violent offenders in
more fitting corrections environments with the goal of preventing them from becoming career criminals,
lowering recidivism rates, reducing prison overcrowding, and ultimately changing the lives of many
Ohioans for the better. On the heels of this legislation, Senate Bill 337-Collateral Sanctions Bill was
signed by the Governor in June 2012.

The cutting-edge piece of legislation will effectively reduce crime in Ohio, decrease offender recidivism,
increase public safety, strengthen families, and expand job opportunities for the estimated two million
Ohioans with a felony or misdemeanor conviction. The legislation, addresses those collateral
consequences that exist beyond the direct sentence resulting from a crime.

Over six months, a bipartisan group, including the Ohio Department of Rehabilitation and Correction,
the Ohio Department of Youth Services, the Governors office, legislators, stakeholders, and various

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interested parties, attended forums across the state to discuss Ohios outdated criminal statutes and
come up with common-sense public policy ideas that would be helpful to ex-offenders obtain jobs
becoming tax payers, not tax burdens. The bill was a result of the moderate approach taken at these
forums and reflects the suggestions from the workgroups. By reducing collateral sanctions and
increasing employment opportunities for individuals with criminal records, it will reduce the likelihood
of them committing future crimes, thereby reducing victimization, and social service system costs, and
potentially increasing payroll tax revenues for local communities.

The bill deals with certain licensing provisions from prohibiting a person with a felony or misdemeanor
conviction to work in fields such as construction and cosmetology. The legislation also reforms certain
driving license suspensions not directly related to moving violations that are currently in statute. The bill
reforms the sealing of adult and juvenile records. The legislation prohibits courts to charge a fee when a
youth applies to have their record sealed along with a number of other juvenile justice reforms.
Furthermore, the bill creates a Certificate of Qualification for Employment which provides immunity to
employers from negligent hiring leaving employers the ability to consider applicants on a case by case
basis.

The passage of SB337 was an important step toward increasing job opportunities for Ohioans who have
paid their debt to society and want to change their lives. Ohio leads the nation in taking a common
sense approach to restoring Ohio citizens who have made a mistake in their past and are eager to live
their lives as tax-paying, contributing members of the community.

For the full bill text visit:
http://www.legislature.state.oh.us/BillText129/129_SB_337_EN_N.html

OHIO
Human Trafficking Task Force

In March 2012, Governor John Kasich signed Executive Order 2012-06K which established the Ohio
Human Trafficking Task Force. Human trafficking the illegal trade of human beings for commercial
sexual exploitation and forced labor is one of the fastest growing criminal enterprises worldwide and is
on pace to surpass the drug trade in less than five years. Ohio is not immune to this plague. Each year
an estimated 1,078 Ohio children become victims of human trafficking and 3,016 more are at-risk.

The task force was formed to marshal the resources of the state of Ohio to coordinate efforts to identify
and rescue victims, to create a coordinated law enforcement system to investigate these crimes, and to
provide the services and treatment necessary for victims to regain control of their lives. Eleven state
agencies are members of the task force and worked to identify service gaps and make recommendations
for filling those gaps. The task force sought to complement the work already being done to fight human
trafficking around Ohio. On June 27, 2012, the task force presented Gov. Kasich with twenty-six
recommendations.

The task force recommended a victim-centered, trauma-informed approach to treatment that is both
more effective and a better use of state resources. The task force included several recommendations for
this gap, including special training for foster parents and child welfare workers, protocol for the

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treatment of human trafficking victims, youth prevention services and identifying a statewide Ohio
service provider network that would be an intensive case management partner for serving minor victims
of human trafficking. The recommendations did not require additional revenue funding and instead
focus on leveraging the resources the state already has and aggressively pursuing federal grant
opportunities.

The recommendations were a comprehensive look at what state agencies can do to reach this
population and prevent Ohios young people from being trafficked. The Task Force will remain in place
to help implement the recommendations made in the report and to continue to find new ways to
further the mandate.

In June 2012, Governor John Kasich signed into law one of the toughest pieces of legislation in the
country to combat human trafficking. Putting a stop to the disgusting operation of Human Trafficking
and ensuring victims of human trafficking received treatment and services, was a priority for Governor
Kasich and his administration. H.B.262 The Ohio Human Trafficking Act of 2012uses a three-pronged
approach to address the problem of human trafficking. H.B. 262 raised the penalty for committing the
crime of human trafficking to a first-degree felony with a mandatory minimum sentence of 10-15 years.
This penalty matches the federal statute and allows Ohio to effectively prosecute traffickers. The law
created a diversion program whereby juvenile victims of human trafficking will receive the protection
and treatment they need through the juvenile justice system. The law allows for victims of human
trafficking with prior convictions of prostitution or solicitation to have their records expunged and
provides them with a civil recourse.

For the full text of the Governors Ohio Human Trafficking Task Force Executive Order and
Recommendations:
http://governor.ohio.gov/Portals/0/pdf/news/06.27.12%20Ohio%20Human%20Trafficking%20Task%20
Force%20Submits%20Recommendations%20to%20Kasich.pdf

OHIO
Fight Against Drug Trafficking

Ohio is in the thick of drug trafficking as drugs move across the U.S. with the majority of the routes going
through or to Ohio. In February 2012, Governor Kasich launched a statewide effort to increase the
effort to fight drug trafficking in Ohio. A new #677 hotline number was created to allow people to
provide information to law enforcement about criminal activity. Public awareness and participation is a
critical component of information gathering, as well as the information sharing among state, local and
federal agencies in regard to criminal intelligence.

Using monies from the Drug Forfeiture Fund, the Ohio Department of Transportation created new
highway signs at state entry points and on Ohios freeways to solicit the public to assist law enforcement
in this War on Drug Trafficking. These signs tell people who to call if they see suspicious activity. The
signs send the message that drug trafficking is not tolerated in the state of Ohio. Since the inception of
the signs there have been 31,680 calls to the hotline number resulting in 240 arrests, the confiscation of
24,710 grams of narcotics/319 marijuana plants/1,173 grams of designer drugs, and $100,362.00 seized.

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In June 2012, Governor Kasich signed Senate Bill 305-Hidden Automobile Compartments to assist the
law enforcement community in combating drug trafficking within Ohios boarders. This legislation
prohibits the designing, building, constructing, fabricating, modifying, or altering a vehicle to create or
add a hidden compartment with the intent to facilitate the unlawful concealment or transportation of a
controlled substance, prohibit operating, possessing, or using a vehicle with a hidden compartment with
knowledge that the hidden compartment is used or intended to be used to facilitate the unlawful
concealment or transportation of a controlled substance. The legislation creates new and higher
penalties toward drug traffickers who go to extraordinary lengths to conceal their contraband.

For a bill context click here:
http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_305

OKLAHOMA
Statewide Public Safety Plan

On May 10, 2012, the statewide public safety plan developed through Oklahomas Justice Reinvestment
Initiative was signed into law by Governor Mary Fallin.

HB 3052 establishes a grant program to fund crime reduction initiatives by local law enforcement
agencies, requires at least nine months of post-release supervision of all felons, establishes risk, mental
health and substance abuse assessments and evaluations prior to sentencing for those found guilty of a
felony, and allows probation officers to utilize intermediate sanctions for noncompliance with
supervision conditions.

Increasing public safety is a top priority of my administration and a primary function of state
government. The reforms in HB 3052 will help to reduce crime and ensure our streets are safer for
Oklahoma families, Fallin said. In addition to lowering crime rates, reducing the incarceration rate and
giving law enforcement more resources to fight crime, this bill will help us to save taxpayer dollars by
helping our corrections system operate in a more efficient and effective way.

HB 3052 goes into effect on November 1, 2012.


PENNSYLVANIA
Justice Reinvestment Initiative

Over the last 30 years, the incarceration rate in Pennsylvania has risen by more than 500 percent. With
a budget approaching 2 billion dollars, the Corbett Administration made it a priority to re-examine a
system that incarcerates more people for longer periods of time but fails to deter future crime and
reduce recidivism.

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In 2011 Governor Tom Corbett launched the Justice Reinvestment Initiative, a data-driven approach to
reduce corrections spending and generate savings to reinvest in strategies that increase public safety. A
working group was established consisting of state cabinet secretaries, Republican and Democratic
lawmakers, and criminal justice stakeholders, to review comprehensive analysis conducted by Council of
State Governments (CSG) Justice staff, in partnership with the Pew Center on the States and the U.S.
Department of Justice Bureau of Justice Assistance. As a result, the Pennsylvania General Assembly
unanimously passed two critical pieces of legislation, Senate Bill 100 (Act 122 signed by Governor
Corbett on July 5, 2012) and HB 135 (passed on October 16, 2012).

Both Act 122 and HB 135 round out the working groups public safety proposals to increase criminal
justice system effectiveness and reinvest savings back into the community to strengthen law
enforcement as well as to deter and reduce crime and recidivism.

Act 122 focuses on correctional reform which will generate significant and immediate savings, while
House Bill 135 provides a vehicle to reinvest those savings to support local law enforcement, victim
services, county probation and parole, and other evidence-based programs and services that work to
reduce crime.

Provisions of Act 122 -Cost savings reform

Safe Community Re-entry requires the development of a reentry plan, and permits the
Department of Corrections and the Parole Board to develop a network of transition and
reintegration programs, including the ability to contract with community organizations and
other non-profit or for-profit entities.

A reorganization of Pennsylvanias community correction system will improve overall
effectiveness by prioritizing intensive residential programs for people on parole supervision
who, based on their specific level of criminogenic risk and need, will benefit the most. The Act
also eliminates the Prerelease Program which had permitted offenders to transition to
Community Correction Centers prior to serving their minimum sentence. Instead, Community
Corrections will focus on parolees and offenders who violate technical conditions of their parole.

Act 122 expands eligibility requirements for existing diversionary and alternative sentencing
programs such as State Intermediate Punishment (SIP), the Recidivism Risk Reduction Incentive
(RRRI), and Boot Camp.

Illegal aliens convicted of non-violent offenses can be paroled to immigration authorities prior to
serving their minimum sentence in order to begin the deportation process.

Provides an opportunity for counties to create a high intensity supervision program to impose
swift, predictable and immediate punishments for offenders who violate their probation.

HB 135 - Justice Reinvestment Funding

One-third of all people admitted to the Department of Corrections have less than one year
remaining on their minimum sentence, thereby limiting the Department capacity to deliver
programming and the Parole Boards ability to review cases in a timely manner. Under HB 135,

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counties are able to voluntarily enter a partnership that reimburses a portion of costs locally
that the commonwealth otherwise would have borne by incarcerating lower-level offenders in
state prison. The reimbursements can be used to develop local offender management
strategies, such as electronic monitoring, day reporting, intensive probation supervision, and
more.

Innovative policing grants are among the reinvestment target areas that Pennsylvania is
providing pursuant to HB 135. The grants include categories such as virtual training of police
officers and for department accreditation, local and regional research-based law enforcement
strategies to deter and combat crime and gang violence. This investment can target strategies
like hot spot policing, crime analysis, and community partnerships that help to supercharge
existing law enforcement personnel by deploying resources more strategically, with better
information, and a broader set of tools to prevent crime before it happens.

An allocation of the reinvestment funds will be dedicated to victim services to be utilized for the
improvement of statewide victim notification; to aid victim service providers achieve
administrative efficiencies by automating and streamlining their data collection and reporting
requirements; and for programs for victims of juvenile offenders.

The Pennsylvania Commission on Sentencing will receive funds to develop a risk assessment tool
(referenced in Act 122) to assist Judges at the time of sentencing.

Counties will be eligible for grants that focus on county probation improvement, to include the
reduction of offenders on probation who violate the terms of their supervision.

Through the leadership of Governor Tom Corbett and his administration both legislative initiatives
passed the General Assembly unanimously demonstrating Pennsylvanias commitment to generate
savings through prison reform that will actually enhance public safety by reinvesting in strategies that
will reduce recidivism.

"Working together, we can deal with crime in a way that will redeem more offenders, appropriately
incarcerate violent offenders and sexual predators, and keep us all from being held prisoner to the
growing costs of locking up the bad guys,'' Corbett said. "We need to be as smart as we are tough on
crime.''

For the full text of the release: http://www.prnewswire.com/news-releases/governor-corbett-
highlights-goals-of-justice-reinvestment-initiative-159466655.html

TENNESSEE
Unveils Comprehensive Public Safety Strategy

In January 2012, Tennessee Gov. Bill Haslam announced a comprehensive, multi-year action plan
designed to improve public safety statewide.

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The Governors Public Safety Subcabinet Working Group, which includes commissioners and
representatives from 11 state agencies, submitted the plan after months of meetings with more than
300 public safety professionals and stakeholders across the state.

The three goals of the public safety action plan are to significantly reduce drug abuse and drug
trafficking; curb violent crime; and lower the rate of repeat offenders. There are 11 objectives and 40
action steps outlined in the plan, all specifically linked to those goals.

While it is a multi-year strategy, the subcabinet working group expects to launch approximately 20 of
the steps in 2012. Several of these steps include:
Making improvements to the current prescription drug data base to make it easier to identify
abusers;
Developing regional alliances with other states to tackle prescription drug abuse;
Placing non-violent drug addicts into drug court treatment programs;
Imposing tougher sentences for certain types of gang-related crimes;
Enacting tougher sentences for gun possession by those with prior violent felony convictions;
Realigning under the Department of Correction the supervision of adult felony offenders to
include probation, parole and community corrections; and
Mandating incarceration time for repeat domestic violence offenders.

Eight of the identified action steps are already underway. Some of those steps include:
Development of a real-time database to track the purchases of pseudoephedrine products
(commonly used to make meth);
A statewide meth lab clean-up system;
Development of a new anti-meth communications campaign;
In-depth training of all state road troopers on drug interdiction; and
A pilot effort in Shelby County to create a one-stop shop for assistance and services to inmates
returning to the community.

The subcabinet working group has received additional support from the Tennessee Criminal Justice
Coordinating Council, the National Governors Association Center for Best Practices, and the Center for
Non-Profit Management.

For the full text of this release: http://news.tn.gov/node/8260

TENNESSEE
Statewide Anti-Meth Campaign

In April 2012, Tennessee Gov. Bill Haslam rolled out a comprehensive statewide campaign designed to
inform Tennesseans about the consequences of violating the I Hate Meth Act, which took effect on
July 1, 2011. The announcement took place in coordination with the Tennessee Sheriffs Association
meeting in Nashville.

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The Meth Stops Now campaign is an action step in the administrations public safety action plan and
specifically addresses the portion of the anti-meth law that increases the penalties for making or using
meth in the presence of children and for purchasing pseudoephedrine products for non-medical uses.

The communications campaign targets the counties in Tennessee where there have been the highest
number of children removed from homes due to meth-related incidents and the greatest number of
meth lab seizures. In 2011, the Department of Childrens Services removed 321 children from their
parents custody due to meth use or manufacturing. Law enforcement officials also seized 1,687 meth
labs in Tennessee last year, the second highest number in the nation, according to the Tennessee Meth
Task Force.

The governor also announced $750,000 in his budget amendment for the Tennessee Bureau of
Investigation to assist local governments with training and equipment costs related to meth clean-up.
This funding was originally appropriated for the current fiscal year but required matching funds from
local governments of 25 percent. The current budget proposal eliminates the matching requirement.

Created by the Tombras Group, the anti-meth campaign is funded by the Department of Finance and
Administrations Office of Criminal Justice Programs through a grant from the U.S. Department of
Justices Bureau of Justice Assistance, Office of Justice Programs, and by the Consumer Healthcare
Products Association. It includes radio public service announcements, billboards, gas pump
advertisements, in-store signage, informational pharmacy bag fliers, a website
(www.methstopsnow.com), and bumper stickers for law enforcement vehicles.

For more information: http://news.tn.gov/node/8635

TENNESSEE
Bill to Outlaw Synthetic Drugs

In May 2012, Gov. Bill Haslam signed legislation outlawing synthetic drugs, resulting in felony jail time
and fines up to $5,000 for synthetic drug sellers and makers.

Press
Governor signs bill outlawing synthetic drugs
By Hank Hayes May 14, 2012
Times News

Synthetic drug sellers and makers now face felony jail time and fines up to $5,000 following a
ceremonial legislation signing by Gov. Bill Haslam in front of Tennessee High Schools student body
Monday.

The two bills sponsored by state Reps. Jon Lundberg and Tony Shipley which address both synthetic
marijuana and bath salts similar to controlled substances became law on May 14
th
.

I think one of the things that affected our thinking ... was this is a big issue, Haslam told reporters
following the legislation signing at Viking Hall. We had a student death up here, and we heard repeated

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tales from the emergency rooms here about how many patients they were seeing from bath salts or
synthetic drugs. It really was something becoming way too commonplace. This place was the epicenter
of it.

Haslams administration included more than $300,000 in the recently passed state budget to pay for
incarceration expenses in the law. Those expenses were based on more than 60 people going into the
Department of Corrections for a controlled substance or imitation controlled substance offense in each
of the past 10 years.

The new laws and increased public focus on synthetic drugs, Lundberg said, apparently have scared off
synthetic drug sellers. He added synthetic drug cases in local emergency rooms have dropped
dramatically.

People will look to other things to try and get the same type of effect they were getting from the
substances earlier available to them... Dreyzehner said. Synthetic drugs are one of those types of
drugs that have been far too available in recent years, and we hope this legislation will make it more
difficult for people to abuse it.

For the full text of this article: http://www.timesnews.net/article/9046602/governor-signs-bill-
outlawing-synthetic-drugs

VIRGINIA
Public Safety Agenda

Building on the public safety proposals outlined in his State of the Commonwealth address, Governor
Bob McDonnell on January 19, 2012, announced his public safety agenda for the 2012 General Assembly
session at an afternoon press conference on Capitol Square. Highlights of the agenda include legislation
to: provide tough mandatory minimum sentences for repeat drug dealers and life sentences for sex
offenders who prey on children; further protect victims of crime; streamline procedures for Virginia's
asset forfeiture laws; and, strengthen the response to emergencies and ensure maximum protection for
victims.

The governor also introduced budget proposals to provide law enforcement with the tools they need to
keep our streets safe. He has continued to support "599" funding for local law enforcement, restored
financial support for sheriffs, and provided new resources for 40 vacant positions in the Virginia State
Police. In addition, the governor has included budget language so that localities have a mechanism for
obtaining authorization for new drug courts, at their expense, as long as they meet certain requirements
and provide data necessary to evaluate their success.


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Chapter 8: Topping the Charts State by State Rankings

States led by Republican governors continue to top the charts in critical categories that reflect well-
managed state governments. In this chapter we highlight several reports that rank Republican-led states
on top of the leaderboard.

Featured rankings in this chapter include:
CNBC, Americas Top States for Business 2012
o 4 of 5 top states have GOP governors
Chief Executive, Best and Worst States for Business
o 9 of the 10 best states for business have GOP Governors
Forbes, The Best States for Jobs
o According to Forbes, 9 of the 10 best states for jobs have GOP Governors
Site Selection Magazine, Most Competitive States
o 9 of 10 most competitive states as ranked by Site Selection are led by Republican
governors
Bureau of Labor Statistics, State Unemployment August 2012
o 7 of the 9 states with the lowest unemployment rates are led by Republican Governors
o States with Republican governors have a 7.6 percent unemployment rate; States with
Democratic governors have an 8.6 percent unemployment rate
o Top 5 states with the largest unemployment rate drops over the last 12 months have
GOP governors, led by Nevada, Florida, Michigan, Mississippi and Ohio.
o Over the last 12 months, states with Republican governors have added nearly 1.4 million
jobs, accounting for more than 60 percent of the nations job growth.

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CNBC
Americas Top States for Business 2012
Republican governor-led states take 12 of the top 15 spots

Each year, CNBC ranks all 50 states on measures of competitiveness to determine Americas Top States
for Business. States are scored based on criteria from 10 categories: Cost of Doing Business, Workforce,
Quality of Life, Economy, Infrastructure & Transportation, Technology & Innovation, Education, Business
Friendliness, Access to Capital, and Cost of Living.

In 2012, Republican-led states dominated the top spots taking 12 out of the 15 best overall rankings.
Rounding out the top three were Texas (Gov. Rick Perry), Utah (Gov. Gary Herbert), and Virginia (Gov.
Bob McDonnell).

For the full text of the study: http://www.cnbc.com/id/46413845

Chief Executive
Best & Worst States for Business 2012
Republican governor-led states take 9 out of the top 10 spots

In Chief Executives eighth annual survey, 650 CEOs are asked to rank the states in which they do
business based on tax and regulation, quality of workforce and living environment. In 2012, Republican-
led states boasted 9 out of the 10 highest rankings for the Best States in which to do business in. Texas
took the top spot for the eighth consecutive year.

For the full text of the survey: http://chiefexecutive.net/best-worst-states-for-business-2012

Forbes
The Best States for Jobs
9 of the 10 best states for jobs have GOP Governors

In late-2011, Forbes releases a study ranking the Best States for Jobs. The study focuses on each states
forecasted 5-year annual job growth, total employment, and unemployment rate. The results
overwhelmingly celebrate the employment situation in Republican-led states as 9 of the 10 best states
for jobs have GOP Governors.

The article notes that right-to-work states dominate the leader board; all but two are right-to-work
states. Economist Arthur Laffer is cited for his work comparing right-to-work states to states without the
law: Laffer found that in the past decade right-to-work states outperformed their union-shop
counterparts in almost every metric. Gross state product growth was 53 percent versus 42 percent.
Personal incomes rose 50 percent compared to 39 percent for union states. Job growth was 2.8 percent
versus -1.3 percent and the population increase was 12 percent opposed to 6 percent.

For the full text of the article: http://www.forbes.com/sites/kurtbadenhausen/2011/11/22/the-best-
states-for-jobs/2/

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Site Selection Magazine
Most Competitive States
9 of 10 most competitive states are led by Republican governors

The May 2012 edition of Site Selection Magazine ranked the Top 10 Competitive States of 2011. 9 of 10
most competitive states are led by Republican governors. The rankings were based on criteria relating to
new and expanded facilities, new jobs created, tax climate, unemployment rate, and other
competitiveness indicators.

Another notable Site Selection ranking: 8 of 10 states with the most new and expanded corporate
facilities have Republican governors.

For more information on these rankings:
http://siteselection.com/issues/2012/may/competitive-states.cfm
http://www.conway.com/press/120301.htm

Bureau of Labor Statistics
State Unemployment August 2012
7 of the 9 states with the lowest unemployment rates are led by Republican Governors

In the August 2012 Regional and State Employment and Unemployment Summary, the Bureau of Labor
Statistics once again highlighted the success of Republican-led states in having the lowest
unemployment rates in the country. This economic news release showed that 7 of the 9 states with the
lowest unemployment rates are led by Republican Governors.

Other notable figures:
States with Republican governors have a 7.6 percent unemployment rate; States with
Democratic governors have an 8.6 percent unemployment rate.
Top 5 states with the largest unemployment rate drops over the last 12 months have GOP
governors, led by Nevada, Florida, Michigan, Mississippi and Ohio.
Over the last 12 months, states with Republican governors have added nearly 1.4 million jobs,
accounting for more than 60 percent of the nations job growth.

For the full text of the release: http://www.bls.gov/news.release/laus.nr0.htm

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