A Path to Prosperity for the Show Me State

Policy makers across the country are implementing bold reform measures to make their state more competitive in attracting residents and jobs. Unfortunately, this is not the case in Missouri. Missouri ranked 44th for private sector job growth, 46th for GDP, and 46th for personal income growth over the past decade. Missouri is experiencing a lack of leadership on bold policy objectives. This lack of vision and direction is crippling the economic well-being of Missouri families and businesses. Recognizing this void, Americans for Prosperity Missouri is creating a comprehensive policy document called the Path to Prosperity. The Path to Prosperity will serve as a long-term, conservative blueprint to guide legislators, engage activists and educate Missourians on issues that can transform our state out of stagnation and into model for economic growth. The Path to Prosperity will tackle key issues in nine legislative areas: 1) Prosperity and Freedom 2) Tax Reform 3) Education 4) Spending and Budget 5) Patient Protections Energy 6) Regulatory Reform 7) Privatization and Municipal Reforms 8) Worker Freedoms Individually, these policy initiatives are not enough to bring Missouri out of economic stagnation. If these legislative areas are addressed cumulatively and over time, however, these policy goals can fundamentally transform Missouris economic climate to one that is vibrant and prosperous. AFP-MOs Path to Prosperity policy initiative requires constant input and feedback from individuals, groups and policymakers along the way. As ideas are added, legislation is drafted and bills are passed, AFP-MO will update the Path to Prosperity document. Below is the framework for long term reform.

AFP-MO Path to Prosperity Blueprint 2014

1) Prosperity and Freedom
Missouri policymakers must protect and encourage prosperity and freedom, at every level. Government should not be in the business of picking winners and losers via legislation, rules or regulations. The economic status quo in Missouri is failing all of the states residents. The ruins from this flawed big-government philosophy are evident throughout our state and municipalities. A renewed effort to protect our individual freedoms and liberties is needed from our elected leaders at all levels of government in order to create long term growth and prosperity. Missourians deserve the opportunity to pursue a path of happiness of their own choosing, relying on their own talents, hard work and selfreliance, free from government intrusion. Fundamental to this initiative is a premium on property rights, fairness and equal access to jobs. Sample Policy Solution Limit government to its core functions and ensure they are fully funded, managed properly and performed efficiently while at the same time eliminate wasteful, redundant and nonproductive programs.

2) Tax Reform
Creating a climate where all citizens keep more of their hard-earned money to spend on their financial security must be on the top of every Missouri lawmakers to-do list. Missourians know how to spend their earnings better than the government, and when they do, economic growth follows. Missouris tax code was primarily written in the early 1900s; the system is out of date and needs comprehensive reform. Many scholars predict that Missouris economy will remain stagnant without changes in the tax system. Neighboring states like Kansas and Indiana have taken bold steps to reduce their state income taxes, property taxes and return money back to the taxpayers. Its high time Missouri does the same. Sample Policy Solution Require two-thirds majority to approve all municipal, county, and state tax hikes by ballot initiative when voter turnout is below 50% or simple majority when voter turnout is greater than 50%.

3) Education Reform
Creating a world class education environment is critical to our future. Policies that demand excellence and reject excuses will help Missouris children prosper. It must provide equal access, expand individual school choices and promote competition. While districts should receive the necessary funding to provide a quality product, there should be safeguards in place to protect taxpayer dollars. New policies must put a premium on local control and eliminate federal bureaucratic involvement and unnecessary oversight. It is necessary for dollars to be spent on instructional needs and teachers with limits to administration growth. Accountability should be a priority at all levels, and school officials and

teachers should be rewarded for high performance. Policies to eliminate underperforming school personnel must also be addressed. Measures should be put in place to address failing schools early to avoid failure. Consequently, if a school district does fail, there are systems in place reduces the negative impact on students, eliminates decision makers after a school becomes unaccredited, and provides for a seamless transition back to accreditation. Sample Policy Solution Pass education tax credits to encourage individuals and corporations to donate to private schools and nonprofits that provide school choice scholarships.

4) Spending and Budget Reform

Missouri policymakers have taken steps to ensure our state stays on sound fiscal footing. However, there is still an opportunity for improvement. Missouris budget and spending should not extend beyond core government functions. Missouri policy makers must make tough decisions to eliminate excessive spending and to protect taxpayers from unnecessary burdens. Sample Policy Solution Enact a Taxpayers Bill of Rights constitutional amendment capping spending increases to inflation plus population growth. Missouri policymakers have done a decent job of curbing state spending to prevent raising taxes. However, more can be done to prevent future policymakers from taking advantage of Missouri taxpayers during strong economic times. A strong Taxpayers Bill of Rights would not only limit increases in state spending to the rate of population growth plus inflation but also require any annual surpluses to pay down state debts, be saved in a rainy day fund, or be refunded to the taxpayer.

5) Patient Protections
Missouri policymakers should not relegate our states neediest citizens to poor health care options by adding more people to an already broken Medicaid system. Policymakers should focus on how to lower costs and keep doctors and patients in charge of health care decisions that work for them instead of state and federal bureaucrats. They must look for way to expand health care choices by partnering with other states when possible and continually seek waivers from federal government health care mandates that negatively impact individual and group insurance policies. Sample Policy Solutions Reject Obamacares Medicaid expansion, embrace cost-sharing reforms to the broken program, and request a block grant from the federal government.

6) Energy Reform
From our beautiful rivers to our breathtaking lakes, from the acres upon acres of corn and soybeans to the vast minerals that lay underneath our soil like coal and natural gas, Missouri is rich in natural resources that put food on our tables and provides energy for our homes. Our lawmakers must take every step tapping these natural resources in a safe and responsible way to ensure affordable

energy, economic growth and well-paying jobs for hardworking Missourians. Sample Policy Solution Eliminate energy subsidies and remove state and local level mandates regarding renewable energy. Recently, America has seen amazing energy innovations. However, energy sources and technologies should survive based on their own merits and their ability to deliver value to customers, not because of political favors. Missourians would be better served if government got out of the way and allowed free market competition and innovation to drive energy choices in Missouri.

7) Regulatory Reform
Free market policies drive economic growth. Policymakers must look to eliminate and reject overly burdensome, redundant and unnecessary government regulations that stifle job creation and creativity. Sample Policy Solution Create a legislative regulatory review committee tasked with reviewing all state regulations for the purpose of eliminating, combining and streamlining state rules and regulations that hamper economic growth.

8) Privatization and Municipal Reforms

Beginning with the principal of smaller government and taking advantage of the efficiencies of private enterprise, Missouri policymakers should partner with local county and municipal governments to reduce the size and scope of government at all levels. Sample Policy Solution Privatize unnecessary state and local government functions such as state park camping operations, mowing the road ways and public property management.

9) Worker Freedoms
Creating a business climate where small, medium and large size companies can grow and prosper without burdensome rules and regulations on its employees is essential. It is important for Missouri policymakers to remove any barriers to economic growth in our state Eliminating unfair worker requirements on businesses would not only allow current business in Missouri to grow, increase wages and hire more people, it would also make Missouri as a whole more competitive in attracting new citizens and commerce to our state. Sample Policy Solution Pass right-to-work legislation that allows workers to opt-out of paying collective bargaining dues when they disagree with the tactics of the union that represents them. Businesses view right-towork states as locations where companies and employees can benefit from more economic growth. Studies show that right-to-work states create more private sector jobs, enjoy lower poverty rates, experience more technology development, realize more personal income growth, and increase the number of people covered by employment-based private health insurance

(prior to Obamacare). Right to work states, as a whole, have created more jobs in the past ten years than forced unionization states.