1

8.15.17 = 25,000

New Hampshires economy has lagged behind our neighboring states for the past decade. We had
become accustomed to being the economic engine of the Northeast, coming out of recessions
sooner and faster than our neighbors. But now, under Maggie Hassan, we have a walking dead
economy.



There is only one answer to this challenge: job creation. The failure to expand our workforce is the
cause of our current situation.

In order to solve the problem, a cultural change has to take place in state government. Instead of
merely acting as a regulator or casual promoter of enterprise as an idea, every department, every
agency, every employee of state Government should have one singular goal: to create new jobs in
New Hampshire.

In order to lead that cultural change, Walt Havenstein has set a job creation goal.

By 8.15.17, 25,000 new jobs will have been created in New Hampshire.
0
20000
40000
60000
80000
100000
120000
140000
160000
16
1
1
1
6
2
1
2
6
3
1
3
6
4
1
4
6
5
1
5
6
6
1
6
6
7
1
7
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1
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1
0
1
1
0
6
1
1
1
1
1
6
1
2
1
1
2
6
1
3
1
Historical New Hampshire Job Creation
1992-2002 2002-2009 2009-Date
2
In comparison, Maggie Hassans tenure has only seen, on average, 5,400 jobs created per year.
1
At
that rate of job creation, the state would only add roughly 13,900 new jobs over 2 years, barely
half of Walt Havensteins target.



The state usually thrived after recessions, seeing strong, consistent growth in the number of people
employed in the state.
2
As New Hampshire has exited the last recession however, job growth has
been anemic.

Our low unemployment rate makes it appear that New Hampshire is doing ok. However, that
household survey only measures employed residents, regardless of whether or not they work in
New Hampshire. In other words, it counts all of the people who live in New Hampshire and
commute to Massachusetts for work.

So while the number of people employed has finally reached the pre-recession peak, New
Hampshire is still more than 7,000 jobs short.
3
That means more New Hampshire residents are
unable to find jobs here and are commuting to Massachusetts for work than ever before; a sign our
southern neighbors economy is doing better.

The establishment survey, on the other hand, measures the number of jobs here in New
Hampshire, providing a more accurate count of job creation. Since this is an economic
development plan for New Hampshire and not Massachusetts, this plan uses those figures.

In terms of job losses, manufacturing in particular has taken a huge hit in the last two recessions,
with the state losing more than 35,000 jobs since 1999 with little sign of recovery.
4


1
Source: Bureau of Labor Statistics, Establishment Survey Data for New Hampshire. January 2013 to June 2014
http://www.nhes.nh.gov/elmi/statistics/ces-arch-data.htm
2
ibid
3
ibid
4
NH Employment Establishment Survey 1999-2014 http://www.nhes.nh.gov/elmi/statistics/ces-arch-data.htm
-5000
0
5000
10000
15000
20000
25000
30000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31
Walt Havenstein's Plan Maggie Hassan's Record
(Projected at current rate)
3


Not surprisingly, New Hampshire now has the slowest growing economy in New England,
increasing by less than 1% in 2013. Thats half the rate of Vermont, and slower than even
Massachusetts and Rhode Island. Were tied with Maine and Connecticut at 0.9% annual growth
for last in New England and 40
th
nationwide.


Source: Bureau of Economic Analysis, U.S. Department of Commerce
5


This malaise is reflected in the number of businesses starting here in the state. According to the
Milken Institute, New Hampshire has dropped from 16
th
in the nation in new business starts in
2004 to 35
th
today. In 2012, New Hampshire ranked fifth in New England, while Massachusetts
led the nation in business starts per capita.

New Hampshire Rank
Business starts per 100,000 people 2002 2004 2008 2010 2012
14
th
16
th
35
th
30
th
35
th

Source: Milken Institute
6


5
Bureau of Economic Analysis, Widespread But Slower Growth in 2013: Advance 2013 and Revised 19972012
Statistics of GDP by State, June 11, 2014 http://www.bea.gov/newsreleases/regional/gdp_state/2014/pdf/gsp0614.pdf
0.0
20.0
40.0
60.0
80.0
100.0
120.0
Number of Manufacturing Jobs in NH
NH
2012
1.1%
NH
2013
0.9% ME
2012
0.6%
ME
2013
0.9%
CT
2012
1.0%
CT
2013
0.9%
RI
2012
1.3%
RI
2013
1.4%
MA
2012
2.3%
MA
2013
1.6%
VT
2012
1.1%
VT
2013
1.9%
Annual GDP Growth
4
We used to be among the top third of states for new business starts, but weve fallen to the bottom
third. New Hampshire simply isnt as attractive a place to do business as it used to be. If we want
robust job growth, New Hampshire needs to restore its economic advantage. We need to make it
easier for new businesses to start here. We need to make it easier for New Hampshire businesses
to connect with each other, with their customers, and with students entering the workforce. We
need a Governor who can reach out across the country to bring businesses back here to relocate
and expand.

Walt Havenstein is uniquely qualified to restore New Hampshires economic vitality. Hes led
New Hampshires largest manufacturer and knows what growing businesses need to thrive. Walt
has worked with the University System to educate the next generation of high tech workers. Walt
can make the case to fellow entrepreneurs that New Hampshire will once again be the best place in
the country to start and grow a business and the economic engine of the Northeast.

The 8.15.17 = 25,000 plan has three phases:

Phase 1: Cut the cost of creating a job lower the cost of doing business, making New
Hampshire the most competitive place in the region, encouraging companies to move here and
existing ones to expand.

Phase 2: Make it easy to fill jobs once a business has taken the decision to hire, it must be as
simple as possible to fill that position.

Phase 3: Market New Hampshire establish a comprehensive strategy to bring business and
businesses to New Hampshire from: first the region, then the rest of country, then our largest
trading partners abroad.












6
http://statetechandscience.org/statetech.taf?page=overall-ranking&composite=rcic&sub2=nbstart
5
Phase 1: Cut the cost of creating a job

Jobs Impact Assessment (JIA)

Every bill that is introduced in the legislature that will affect government revenues or spending has
a Fiscal Note written by the non-partisan Legislative Budget Assistant, which estimates the fiscal
impact of the legislation. As state legislators weigh the merits of a bill, knowing the cost is a
crucial piece of information.

As all levels of government align to the goal enabling the creation of 25,000 jobs, knowing the
impact of legislation on job creation is fundamental. Using Fiscal Notes as a model, the LBA,
should apply a similar assessment to proposed legislation.

All proposed regulations or repeals, tax increases or cuts, or legislation that will otherwise impact
businesses, should have a number attached that estimates how many jobs will be created,
destroyed, or prevent from being created, should that bill be enacted the JIA.

In addition, any rules that are proposed by state agencies should undergo a similar process carried
out by the Department of Economic Development.

Both will require legislative approval and Walt will lead the effort to get that approval.

The JIA will serve as a measure for the Governor, legislators, and bureaucrats as well as a
powerful signal to companies large and small that New Hampshire is open for business.

No Income or Sales Tax

New Hampshire is the only state in the nation without a broad-based sales or income tax. Our low-
tax status has allowed businesses to start and grow. The fiscal benefits of avoiding broad-based
taxes are enormous.

However, in recent years taking the pledge has become a perfunctory box-tick for Democrat
Governors: they take it in theory, but in practice enact policies which will eventually drive us
towards a broad based tax in order to balance the budget in the wake of overspending. A new
commitment to fiscal conservatism is needed to oppose even these policies.

Lower Business Taxes

Frankly, weve coasted on our low-tax reputation, allowing New Hampshire business taxes to rise
to the third highest in the nation
7
. While these taxes are less harmful than a broad-based tax, the
climbing rates of these taxes are eroding New Hampshires competitive economic advantage.


7
Tax Foundation, 2014 State Business Tax Climate Index, http://taxfoundation.org/article/2014-state-business-tax-
climate-index
6

Source: Federation of Tax Administrators
8



As our economy grows, we should return some of our increasing revenues to the businesses that
generate them, by lowering business taxes. Over two terms, Walt will lower the Business Profits
Tax from 8.5% to 7.4%. In his first budget, he will propose a reduction from 8.5% to 7.9%
(bringing our rate below MA). In his second budget, he will propose a reduction from 7.9% to
7.4% (bringing our rate below CT). This will make the state more competitive in the region and
across the country. The first reduction is estimated to cost approximately $49.2 million over the
biennium, but can be made up for by the natural growth of revenue that the state sees every year
and level funding Government (keeping state spending flat).

Address High Healthcare Costs

Over the last 15 years, government interventions have driven health insurance companies out of
New Hampshire, leaving Granite Staters with some of the highest health care costs in the nation.
9


The biggest blow came in 1994 with then State Senator Jeanne Shaheens health insurance reforms
that virtually destroyed the individual market by requiring community rating for plans and banning
high risk pools.
10
19 insurance companies left the state entirely and the 5 that remained only
offered high deductible, catastrophic style plans.
11
Rates jumped from the second lowest in the
country to the second highest. Some reforms were made in the early 2000s, but the damage had
been done and the market has yet to recover. In part, as a result of these actions, the cost of family

8
Federation of Tax Administrators, February 2014, http://www.taxadmin.org/fta/rate/corp_inc.pdf
9
The Wall Street Journal, Health Care Costs: A State by State Comparison,
http://online.wsj.com/news/articles/SB10001424127887323884304578328173966380066
10
http://www.gencourt.state.nh.us/legislation/1994/SB0711.html
11
Meier, Conrad Destroying Insurance Markets, pp 63-8
ME
3.5%
VT
6.5%
CT
7.5%
MA
8.0%
NH
8.5%
RI
9.0%
Minimum Corporate Tax Rate
7
insurance coverage has increased 75% in the last decade, topping $17,000 per year in 2013, one of
the highest in the country.
12


While the federal healthcare law (Obamacare) has limited the options the states have for reform,
there are still opportunities for the states to make improvements. For New Hampshire, the first
steps should be a reevaluation of the current health insurance mandates on the books and restoring
competition to the private health insurance marketplace. These actions will increase choices for
consumers, bringing down prices.

Address High Energy Costs

New Hampshires micromanagement of our electric utilities have given us some of the highest
electric bills in the U.S. Well-meaning energy
mandates like RGGI and the Renewable
Portfolio Standards cost rate payers roughly an
additional $38 million
14
per year, while
delivering questionable environmental benefits.
We cant afford to continue picking winners
and losers in the energy marketplace, forcing
ever higher electric rates.

Protect Employers from Hidden Taxes

New Hampshire recently ranked 46
th
in the nation for Unemployment Tax Rate.
15
At the depth of
the recession, the states Unemployment Trust Fund (which pays unemployment benefits) went
bankrupt and had to be bailed out by Washington in 2008. As a result, an emergency surcharge of
1% was added to the Unemployment Tax (which is based on payrolls) to refill the trust fund.
Needless to say, an extra payroll tax during a recession is a great way to stall job creation.

The state dropped the last emergency surcharge late last year, but plans during the last legislative
session for unsustainable increases in unemployment benefits would have necessitated using those
surcharges again.

We must continue to shore up the Trust Fund and prevent New Hampshire from having to repeat
the desperate measures of 2008. To do so, we must:

Allow the Unemployment Trust Fund to continue to grow to healthy funding levels
Keep current benefit levels steady, reducing pressure on the Trust Fund
Ensure balance going forward between the keeping the Trust Fund solvent and not
burdening businesses

12
http://meps.ahrq.gov/mepsweb/data_stats/summ_tables/insr/state/series_2/2013/tiid1.pdf
13
U.S. Energy Information Administration, Electric Power Monthly, March 2014,
http://www.eia.gov/electricity/monthly/epm_table_grapher.cfm?t=epmt_5_6_a
14
http://www.puc.state.nh.us/Sustainable%20Energy/RPS/RPS%20Review%202011.pdf,
http://www.rggi.org/docs/Auctions/24/NH_Proceeds_By_Auction.pdf
15
Tax Foundation Business Climate Index: http://taxfoundation.org/article/2014-state-business-tax-climate-index
Average Retail Electric Price (/kwh)
US NH Rank
Residential 12.26 17.33 45
th

Commercial 10.68 15.32 43
rd

Industrial 6.99 13.18 45
th

Source: US Energy Information Administration
13

8

Workers Compensation costs are skyrocketing, presenting another hidden tax on employers. New
Hampshire ranks 41st in affordability for Workers Compensation Insurance, with rates nearly
double that in neighboring Massachusetts.
16
These high rates are despite New Hampshire having
some of the safest workers. The healthcare component of Workers Compensation is largely the
culprit in driving rates higher
17
, which crowds out the available money for the cash benefit to
injured workers. Reform would not only lower the rates, but ensure injured employees receive fair
compensation while recovering. Walt will lead efforts to conduct a wholesale reform of the
system.


































16
http://www.cbs.state.or.us/external/imd/rasums/2083/12web/12_2083.pdf
17
Solomon, Dave, NH Union Leader, NH Workers Comp costs exploding, May 22, 2014,
http://www.unionleader.com/article/20140522/NEWS0621/140529550
9
As we and other top businesses support
the college, were also helping to underpin
New Hampshires technological future. We
are delighted to assist with this greatly
needed renovation, and pleased to be
partnering with UNH and its future
premier engineering students.- Walt
Havenstein, September 4, 2003.
Phase 2: Make it Easy to Fill Jobs

Bring Competition to New Hampshires Labor Markets

The choice to join a union should be protected for all
New Hampshire workers. And no worker should be
forced to join a union, or pay union dues, against their
will.

24 states now let workers choose whether or not to join a
union, but none are in the Northeast.
18
Passing a Right to
Work law in New Hampshire will help us stand out from
our neighboring states as we compete for new jobs and
send a signal to the whole country that New Hampshire is open for business.
19


Align Education with Workforce Needs

One of the key obstacles to job creation and economic growth in New Hampshire is high tech
employers are trouble finding qualified employees. Our educational system is not adequately
preparing our students to compete for high tech,
high growth jobs.

When Walt was running BAE Systems, he was
looking for young New Hampshire college
graduates to start their careers at the company, but
the University of New Hampshire wasnt teaching
the interdisciplinary engineering skills that BAE
Systems was looking for. So under Walts
leadership the company gave UNH a gift of $1
million to establish the BAE Systems Center for
Advanced Technology.
20


In meeting the goal of 25,000 new jobs, the states education system should be able to prepare
students to compete in the high-tech workforce. This alignment of goals needs input from all
stakeholders: the Community College System, the University System, local high schools and
vocational schools, and businesses. Dialogue between these groups will foster an understanding of
the educational needs of businesses and identify the best ways the states educational system can

18
The Blaze, As Mich. Becomes 24th Right-to-Work State, Is This the Beginning of the End of Union Influence?,
December 12, 2012, http://www.theblaze.com/stories/2012/12/12/as-mich-becomes-24th-right-to-work-state-is-this-
the-beginning-of-the-end-of-union-influence/
19
http://www.heritage.org/research/reports/2011/11/right-to-work-increases-jobs-and-choices#_ftn9
20
University of New Hampshire, BAE SYSTEMS Gives UNH $1 Million for Center for Advanced Technology,
September 4, 2003, http://www.unh.edu/news/news_releases/2003/september/be_20030904bae.html
10
prepare students to fill those well-paying jobs. This conduit between education and business will
not only encourage businesses to stay in New Hampshire, but encourage others to relocate here.

Eliminating Needless Regulations

Entrepreneurs looking to start or expand their businesses face a maze of complicated, confusing,
and sometimes conflicting regulations. We need to streamline our regulatory framework, shorten
wait times for project approval, and help businesses navigate through state bureaucracy. Some first
steps would include:

Allow for online filing to incorporate a business, create an LLC, register a name, etc.
o Makes it easier for businesses to incorporate
Allow Real Estate Transfer Tax Exemption for non-transfers
o Makes it easier for businesses to reorganize, say from an LLC into a corporation,
without having to pay the Real Estate Transfer Tax in the process.
Repeal RSA 275:70, which deals with non-compete/non-piracy agreements
o Well intentioned, but the vague wording of the law has chilled high-tech
companies interest in New Hampshire.

In addition, there should be a systematic and comprehensive review of all business regulations that
would:

Review and reassess all of the regulations on the books
Eliminate redundant or out dated regulations
Simplify confusing regulations
Clarify bureaucratic rule making authority to safeguard against overreach

All of these should be done with input from the business community. Who knows better which
regulations are stifling job creation more than those directly affected by it?
















11
Phase 3: Market New Hampshire

Reaching out to businesses around the country

The current administration has no plan to attract to businesses to the state. The economic
development plan above, rather then resting on the laurels of the past, will make the state more
attractive for businesses, making New Hampshire the economic engine of the region.

Walt will personally reach out to businesses across the country to convince them that New
Hampshires low tax, business friendly climate is where they want to relocate and expand. His
own experience running one of New Hampshires largest and most successful companies provides
him unique credibility to bring in new businesses from across the United States.

Rather than randomly traveling to a country like Turkey that ranks twelfth (and falling
21
) in NH
exports, Walt will first appeal to businesses in neighboring and other Northeastern states to
relocate to New Hampshire. Canada, as the largest recipient of the states exports would be next,
followed by the rest of the United States and Mexico.

Republican Governors around the nation are aggressively courting businesses in high tax states to
relocate and expand. New Hampshires enhanced low tax reputation will allow us to compete and
win, if we have a person in the Governors office who will champion New Hampshire as an
economic destination, and who can make the case that its the best place to start and grow a
business. The person that can do that is Walt Havenstein.


21
http://www.nheconomy.com/uploads/NH%20-%20Year%20End2013-Trading%20partners.pdf