Federal and Connecticut Financial and Competitiveness Challenges No Labels, CBIA and CT Voices for Children Make Government Work Forum Hartford, CT November 22, 2013 Hon. David M. Walker National Co-Founder of No Labels and Former Comptroller General of the United States
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Federal and Connecticut Financial and Competitiveness Challenges No Labels, CBIA and CT Voices for Children Make Government Work Forum Hartford, CT November.
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Federal and Connecticut Financial and Competitiveness Challenges
No Labels, CBIA and CT Voices for ChildrenMake Government Work Forum
Hartford, CTNovember 22, 2013
Hon. David M. WalkerNational Co-Founder of No Labels and
Former Comptroller General of the United States
2
The Federal Government has Grown Dramatically
2%
Federal Spending$16 Billion in 2012 Dollars
1912
Source: Historical Statistics of the United States, Millennial Edition On Line, Cambridge 2006; Congressional Budget Office, Long-Term Budget Outlook, June 2012. Compiled by TCAII
3
We’ve Lost Control of the Budget
3% 97%
Controlled Yearly
1912
64%36%
Auto Pilot
2012Source: Historical Statistics of the United States, Millennial Edition On Line, Table Ea636–643 Federal government expenditure, by major function: 1789–1970. Congressional Budget Office, The Budget and Economic Outlook: fiscal Years 2013 to 2023, Feb. 2013. Compiled by TCAII.
4
U.S. Federal Government Debt Historical and Projected
Public Debt Extended Baseline - GAO Alternative Scenario - GAOP
ubli
c D
ebt %
of G
DP
Source: CBO, 2013; GAO, 2013
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Comparative Government Debt Burdens as a % of GDP (2012)
Germany Spain France United Kingdom
United States Portugal Italy Greece0%
20%
40%
60%
80%
100%
120%
140%
160%
82.0% 84.1%90.3% 90.3%
106.5%
123.0% 127.0%
158.5%
0.306
Gen
eral
Gov
ern
men
t G
ross
Deb
t as
a P
erce
nta
ge o
f G
DP
Source: IMF, World Economic Outlook, April 2013; U.S. Treasury, Debt to the Penny. Compiled by TCAII. Note: Additional data with dotted line represents intra-governmental holdings for the United States. All figures for 2012.
Total U.S. Debt137.1%
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Federal Financial Sink Hole
2000 2012$0
$10
$20
$30
$40
$50
$60
$70
$80
$6.9
$18.8$0.5
$2.4
$3.8
$11.3
$9.2
$37.2
Explicit Liabilities Commitments & Contingencies Social Security Medicare
Tri
llion
s of
Pre
sen
t V
alu
e D
olla
rs
SOURCE: Data from the Department of Treasury, 2012 Financial Report of the United States Government. Compiled by TCAII.Note: Actuary’s alternative estimates are used for 2012 Medicare projected benefits cost.
Source: CNBC, America’s Top States for Business 2012. Compiled by TCAII. Note: Categories include: Cost of Business, Workforce, Quality of Life, Economy, Infrastructure and Transportation, Education, Business Friendliness, Access to Capital, and Cost of Living.
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2010 Education Levels – Residents 25 and Older, by Tiered Levels of Poverty
Source: Meeting the Challenge-The Dynamics of Poverty in Connecticut, CAFCA, CCEA, BWB Solutions
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Effective Property Tax Rates Across Connecticut
0%
1%
2%
3%
4%
5%
6%
BridgeportEast Hartford
Hartford
New Haven
Salisbury
Waterbury
Eff
ecti
ve P
rope
rty
Tax
In
CT
Source: Connecticut Office of Policy and Management
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• Pass a budget
• Focus on debt/GDP
• Address both short-term investment and structural challenges
• Reform social insurance programs, address health care promises and costs, engage in comprehensive tax reform, and move beyond sequester approaches
• Address key infrastructure, energy, education, immigration, R+D and other competitiveness challenges
A Way Forward – Selected Federal Actions
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• Honor the Constitution
• Comprehensive tax and regulatory reform
• Restructure retirement plans
• Address key infrastructure, energy, education and other competitiveness challenges