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Contents     2010
GET THE FACTS
JERRY BROWN   MEG WHITMAN

CALIFORNIA IN CRISIS
4  California in Crisis
6  Crisis by the Numbers
  - Unemployment
  - Taxes
  - Business Climate
  - Debt and Future Forecast

AN INTRODUCTION TO JERRY BROWN
8  An Introduction to Jerry Brown
10  A Lifetime in Politics  A Legacy of Failure
17  Jerry Brown's Greatest Hits
18  Jerry Brown's War on Jobs vs. Meg's Plan for Creating Jobs

JOBS ARE ON THE WAY
20  Meg's Jobs Plan

A NEW KIND OF LEADER
22  About Meg Whitman
24  Meg's Vision for a New California
27  Join Meg!




sample pages...

6-7

CRISIS
Crisis by the Numbers

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

48TH
The rank of California's business tax climate according to the Tax Foundation.

8TH HIGHEST
California has the 8th highest corporate tax rate.
 
UNEMPLOYMENT
12.4%
California's unemployment rat in August 2010, only Michigan and Nevada had higher rates.

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

10.1%
California has lost 10% of its workforce in the past three years.
 
DEBT & FUTURE FORECAST
$20 BILLION
California has a $20 billion budget deficit and has the highest rate for insuring its debt.

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

DOUBLE DIGITS
UCLA's Anderson Forecast predicts that unemployment will remain in double digits until 2012.
 
BUSINESS CLIMATE
WORST FOR BUSINESS
CEO Magazine calls California absolutely the worst state to do business in.

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

48TH
The U.S. Chamber of Commerce finds California has the 46th worst lawsuit climate in the nation.

10-11

JERRY BROWN: A LEGACY OF FAILURE
A Lifetime in Politics

1938	Brown is born in San Francisco
1959-1967	Father Pat Brown served as 32nd Governor of California
1964-1965	California Supreme Court Law Clerk
1967	Founded California Peace State and Treasurer for Eugene McCarthy campaign
1968	Elected to Los Angeles Junior College Board
1971-1975	California Secretary of State
1975-1983	34th Governor of California
1976	Failed run for U.S. Presidency
1980	Second failed run for U.S. Presidency
1982	Failed run for U.S. Senate
1989-1991	California Democratic Party Chair
1991	Second failed run for U.S. Senate
1992	Third failed run for U.S. Presidency
1999-2007	Mayor of Oakland
2007-Present	California Attorney General

A Legacy of Failure
 
DID YOU KNOW?
Governor Brown left the state with record high 11.1% unemployment

Governor Brown raised or endorsed $7 BILLION in new taxes

In 1989 Jerry Brown worked to ship jobs overseas to China

When Mayor Brown left office, Oakland was named the 4TH MOST dangerous city in the U.S.

Mayor Brown advocated raising Oakland property taxes $500 MILLION

Mayor Brown left Oakland with a $13 MILLION deficit and high debt burden
 
Jerry Brown: Failure follows him everywhere
 

14-15

JERRY BROWN: A LEGACY OF FAILURE

GOVERNOR JERRY BROWN: HAD NO PLAN FOR CREATING PRIVATE-SECTOR JOBS
Jerry Brown served as governor from 1975 until 1983, an era marked in large part by economic uncertainty and rudderless political leadership. Brown told a national television audience in 1995, campaign promises are "a lie .... You run for office and the assumption is, oh, I know what to do. You don't. I didn't have a plan for California." In his second term, the number of unemployed Californians increased by more than 600,000.

JOBLESS RATE NEARLY DOUBLED
In Brown's second term, the jobless rate soared from 6.5 percent to 11.1 percent, a record high. But he did grow state government jobs — by 20,000 over his eight­-year term.

PROMISED "ERA OF LIMITS", BUT TURNED A SURPLUS INTO A DEFICIT
Brown was elected governor on a platform of no new taxes and espoused the mantra of reduced expectations for an "era of limits". Brown's only idea of limits, however, was to discourage business growth and kill job creation. He endorsed $7 billion in new taxes and expanded business regulations. In his second term in office, Brown signed a bill hiking the state gas tax by two cents, a $2.7 billion increase, and it included a provision allowing local governments to raise the gas tax even higher. He also doubled the vehicle registration fee. He proposed a $5 billion sales tax increase. And with a deficit looming, Brown's final budget called for $1.5 billion in accelerated tax collections and new fees on utilities, farmers and college students.

Jerry Brown called for $7 billion worth of tax hikes. He wanted to tax:
FARMERS  UTILITIES  STUDENTS
Willis, The Associated Press, 1/8/82; Los Angeles Times, 5/7 /81, 9/18/81
Jerry Brown EVEN doubled the vehicle registration fee.
Gillam, Los Angeles Times, 8/13/81

He granted vast new powers for public employees to unionize. That move has led to the lavish state worker retirement system that today has left California taxpayers on the hook for at least a $100 billion unfunded liability.

PURSUED ANTI-BUSINESS AGENDA
When Jerry Brown became governor in 1975, he brought in environmental, consumer-protection and social activists. Within months, the Brown appointees were issuing new regulations widely decried by business and professional interests as job killers. Dun & Bradstreet ranked California second to the bottom when considering where to locate a plant, citing excessive regulation and a strong union presence.

Under Brown the jobless rate nearly DOUBLED from 6.5% to 11.1%
United States Bureau of Labor Statistics, Accessed 2/18/10

RAISED TAXES ON EMPLOYERS
The California Chamber of Commerce's president said, "Under our so called no-new-taxes Brown administration we've been paying $800 million more in taxes. lt's clear California's elected leaders and their appointees have never taken a course in economics." Brown sought to abolish the two-thirds requirement to alter business taxes, supported the unitary tax on multinational businesses, raised the unemployment insurance tax, and backed other taxes that discouraged companies from expanding to California.

PUT UP BARRIERS TO JOB GROWTH
According to one analysis, Brown's "record of hostility to the state's economy" included an almost doubling of state spending in his first two years compared with Ronald Reagan's last four years, a nearly complete halt to highway construction, a public utilities commission that limits new business to piddling allotments of natural gas, and a tax and environmental-control system that has discouraged Dow Chemical, Alcan Aluminum, Anchor Hocking Corp. and many other companies from building facilities here.

TURNED AWAY MAJOR EMPLOYERS
Dow Chemical gave up on a plant that would have used clean technology and created 1, 000 jobs. In two and a half years, the company spent nearly $5 million and only obtained four of 65 necessary permits.

Jerry Brown met with the top executives of Honda. Why should Honda consider California for its first American plant?

During his time as Governor, Jerry Brown turned a $6 billion surplus into a $1 billion deficit
Gross, The New York Times, 4/5/92; Associated Press, 9/14/10

"Hippies", Brown replied. "Blue jeans. All important trends start in California:' Honda went elsewhere.

CAMPAIGNED AGAINST PROP. 13, CALLING IT "A RIPOFF"
While Brown dawdled, California taxpayers in the 1970s were being pushed into higher income tax brackets because of inflationary pressures. Escalating property taxes, with no caps, were threatening to drive people from their homes. Brown did nothing to fix the inequities. Angered, voters overwhelmingly passed Proposition 13 in 1978. While Brown had tried to urge its defeat, calling it a "ripoff" and "consumer fraud," the voters simply ignored him.

COST JOBS BY FAILING TO ACT IN CRISES
Brown was roundly criticized for not taking practical steps to address the state's debilitating drought between 1975 and 1977. He failed to act when a pest, known as the Mediterranean fruit fly, severely threatened the state's agriculture industry. Brown cost California agriculture $100 million.

BROWN CALLED "WORST ADMINISTRATOR EVER TO COME DOWN THE PIKE"
As governor, Brown showed virtually no skill or desire to work with the legislature, prominent Democrats and even his own staff. Democratic Assemblyman Louis Papan simply called him "the worst administrator ever to come down the pike." Democratic Assembly Leader Leo McCarthy bluntly said Brown "isn't willing to work at the job of being a unifying leader."

By almost everyone's account, Brown was a notoriously poor manager, often unfocused and almost always without a plan. Brown simply called it "creative inaction," and once said, "Sometimes it's better to do nothing." The result was a nearly dysfunctional governor's office. Sadly, Californians paid the price.

While Brown happily named a state astronaut and the publisher of the Whole Earth Catalog as a special consultant, two years into his administration nearly one of five board and commission appointments remained vacant. He also was widely faulted for letting highways decay and ignoring public education. "He let state legislators or his own appointees deal with those, and he wasn't around even to correct their more grievous errors," The Sacramento Bee concluded. During one stint in 1979, busy running for president, Brown spent 79 out of 100 days outside of California.

LED CALIFORNIA TO DEFICIT SPENDING, BUSINESS UNCERTAINTY
When Brown left office in January 1983, more than 1.3 million Californians were out of work, nearly double the number four years earlier at the start of his second term. He'd turned a $6 billion surplus into a $1 billion deficit. The Sacramento Bee reported that California was "flat broke and flirting with bankruptcy:' California's government was on the verge of issuing IOUs for the first time since the Great Depression and unemployment was a record-high 11.1 percent, only surpassed during this current recession.

In a 1995 speech, Brown said, "Remember, in 1982, we had the first deficit left in California. I had seven balanced budgets. Usually they had balanced budgets before that. I left an unbalanced budget in 1982 and guess what, they've had a debt ever since."

 

20-21

MEG'S JOBS PLAN
JOBS ARE ON THE WAY

Creating Jobs for a New California
Meg Whitman has a plan to prime California's economic pump to start creating jobs immediately, with the goal of 2 million new private-sector jobs by 2015.

Meg's plan will make California competitive again with neighboring states, raise our standard of living, grow our tax base and help put an end to the perpetual budget problems.

PROVIDE JOB-CREATING TAX CUTS
 
The number one issue facing our state is jobs. With more than 2 million Californians unemployed, we must act now. Employers, not the government, create jobs. We must create the conditions to encourage new businesses to be created, existing businesses to grow, and out-of-state businesses to move to California. To achieve this, California must be business-friendly and competitive with other states.

As governor, Meg will:
■    Eliminate the Small Business Start-Up Tax
■    Eliminate the Factory Tax
■    In crease the Research and Development Tax Credit
■    Promote Investments for the Agriculture Industry
■    Eliminate the State Tax on Capital Gains
■    Establish Academic Enterprise Zones
■    Accelerate Depreciation of New Business Equipment
■    Provide a $10,000 Tax Credit for Home Purchases
■    Provide a Tax Credit for Green Tech Job Creation
 
RECRUIT NEW INDUSTRIES AND RETAIN EXISTING EMPLOYERS
 
California is losing jobs to competing states such as Arizona, Nevada and Texas, not only because our regulatory and tax costs are excessively high, but also because our state officials do not do an effective job of selling California's economic attributes to existing and prospective employers.

As governor, Meg will:
■    Head an Economic Development Sales Force
■    Streamline Business Permitting Process
 
STREAMLINE AND REFORM REGULATIONS
 
To work in tandem with her targeted tax cut plan, Meg has outlined a series of reforms and initiatives that will provide meaningful relief to employers and consumers from costly regulation and frivolous litigation.

As governor, Meg will:
■    Implement a Strategic Time-Out on New Regulations
■    Require an Economic Cost-Benefit Analysis of New Regulations
■    Establish Business Development Teams for Permitting
■    Harmonize Regulatory Authority
■    Modernize Workers' Compensation Reforms
■    Give a Fresh Look to AB 32
■    Improve California's Labor Laws and Workplace Flexibility
■    End Lawsuit Abuse
 
SOLVE CALIFORNIA'S WATER CRISIS
 
Turning our back on the state's ongoing water crisis is turning our back on jobs.

As governor, Meg will:
■    Support New Water Storage and Delivery Projects
■    Support the Construction of Above and Below-Ground Water Storage
■    Secure California's Water Supply by Constructing an Alternative Conveyance System
■    Strengthen our Conservation Efforts and Promote the Use of Technology
 

22-23

MEG WHITMAN
A New Kind of Leader for A New California
Meg Whitman fell in love with California as a young girl.

Although Meg was born and raised on Long Island, New York, her passion for California had early roots. In 1962, Meg's adventurous mother, Margaret, packed six-year-old Meg and her brother and sister into a Ford Econoline van and they spent three months car-camping throughout the West. Meg's fondest memories: the majesty of Yosemite's towering cliffs and the thrill of Disneyland's spinning teacups. "California seemed larger than life, a place where anything was possible," Meg recalls.

Indeed, Meg was taught from the start that if she could dream it, she could do it. It began with her parents: Meg's mother was an intrepid spirit who vol­unteered in World War II to over­haul jeep and airplane engines. She taught Meg to face challeng­es head-on and instilled in her the philosophy that the price of inaction is far greater than the cost of making a mistake. Meg's father, a World War II veteran, taught her that hard, behind­-the-scenes work is important for success in life. Together, Meg's parents instilled in Meg the importance of integrity, convic­tion and perseverance.

Meg attended public school from kindergarten through the 12th grade. As a strong student and a versatile athlete, Meg had the opportunity to attend Princeton University, where she received a degree in eco­nomics, and Harvard Business School, where she received her MBA. Her first professional job was as a brand assistant at Procter & Gamble in Cincinnati. But Meg soon found herself happily headed to California again, this time as a young bride with her husband, Griff Harsh, who had accepted a medical residency at the Univer­sity of California, San Francisco. Meg joined the consulting firm Bain & Co.'s San Francisco of­fice, where she would work for the next eight years, eventually becoming a vice president. At Bain, Meg developed her keen ability to analyze challenges and solve problems by "focusing intensely on the small number of changes that can make the largest possible difference.'' Also during this time in San Francisco, Meg and Griff decided to start their family and sons, Griff and Will, were born.

Meg's career led her to key executive positions at some of America's best-known compa­nies, including Disney, Stride Rite, FTD and Hasbro. Each career stop helped prepare her for the unprecedented opportu­nity that Meg encountered in the fall of 1997, when she met the founder of a tiny start-up called eBay. Meg had honed a style of leadership that emphasized listening and teamwork. She was a seasoned manager of large, complex orga­nizations. Meg immediately saw in eBay the makings of a great company. eBay had married the Internet's communication and networking capabilities to cre­ate a novel and efficient trading market. It also had something very rare — an exuberant com­munity of users who loved eBay and who pulled together to make it work and grow.

At eBay, Meg made history. Meg steered the company through the dot-com rise and fall that saw the vast ma­jority of high-flying start-ups crash and burn, while eBay turned in one quarter of dramatic growth after another. When she joined eBay, the com­pany had just $4. 7 million in rev­enues and 30 employees; when she retired in March of 2008, 10 years later, the company had nearly $8 billion in revenues and 15,000 employees worldwide — and had helped to create tens of thousands of small businesses online. During that journey, Meg appeared on many "top CEO" lists and national magazine cov­ers. Time ranked her among the world's most influential people. Fortune ranked her as the most powerful woman in business in 2004 and 2005. And BusinessWeek listed her among business's top managers year after year.

Meg's widely regarded leader­ship and organizational skills attracted attention beyond busi­ness. As the leader of a global company that created a huge number of jobs and helped cultivate thousands of small busi­nesses, Meg developed strong ideas about the ingredients for 21st-century success at every scale, from small business to the corporate level, from local to state to national government. It was as CEO of eBay where Meg experienced the influence and power of government in people's everyday lives and its ability to help or hinder businesses and consumers at every level. And it was at this time when she saw a critical need for more focused problem solving in government by those with the tools to lead and the willingness and indepen­dence to challenge the status quo. Her decade at the helm of eBay came to a close just as California's growing economic crisis was unfolding. Job losses, undisciplined spending and the declining performance of California's schools were deeply troubling to Meg, and she thought carefully about how she could lend her experiences to help. In Febru­ary 2009, she announced her candidacy to become California's next gover­nor. "We've got to focus — we've got to create jobs, cut spending, and invest in fixing our educa­tional system," Meg says.

Meg has committed her en­ergy, her trademark optimism and her belief in fiscal restraint to the challenge of rebuilding California. She has done so with the full support of her family, which is her greatest source of pride. Meg and her husband, Griff, now a doctor at Stanford Hospital, have been married for 30 years. Meg and her family are ardent outdoor enthusiasts who love hiking, skiing, fly-fishing and enjoying all of California's natural treasures. "If we let Cali­fornia fail, we all fail," she says. "And we love California too much to let it fail. We have to work together to make it the place of our dreams again."



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

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