REPUBLICAN GOVERNORS ASSOCIATION

RGA

RGA ANNUAL CONFERENCE - NOVEMBER 17-20AUSTIN, TEXAS

CHAIRMAN’S REPORT I 2009

1747 Pennsylvania Avenue NW, Suite 250 | Washington, DC 20006 | (202) 662-4140 | www.RGA.org

2009 REPUBLICAN GOVERNORS OF THE UNITED STATES

Bob Riley, AL

Sean Parnell, AK

Jan Brewer, AZ

Arnold Schwarzenegger, CA

M. Jodi Rell, CT

Charlie Crist, FL

Sonny Perdue, GA

Felix Camacho, GU

Linda Lingle, HI

Butch Otter, ID

Mitch Daniels, IN

Bobby Jindal, LA

Tim Pawlenty, MN

Haley Barbour, MS

Dave Heineman, NE

Jim Gibbons, NV

John Hoeven, ND

Luis Fortuño, PR

Don Carcieri, RI

Mark Sanford, SC

Mike Rounds, SD

Rick Perry, TX

Gary Herbert, UT

Jim Douglas, VT

1

2009 GOVERNORS-ELECT OF THE UNITED STATES

REPUBLICAN GOVERNORS ASSOCIATION

RGA32

GOVERNOR-ELECT CHRIS CHRISTIE OF NEW JERSEY

GOVERNOR-ELECT BOB MCDONNELL OF VIRGINIA

REPUBLICAN GOVERNORS ASSOCIATION LEADERSHIP

Governor Haley Barbour (MS), Chairman

Governor Tim Pawlenty (MN), Vice Chairman

Nick Ayers, Executive Director

EXECUTIVE COMMITTEE

Governor Haley Barbour (MS), Chairman

Governor Tim Pawlenty (MN), Vice Chairman

Governor Charlie Crist (FL), Gala Chairman

Governor Rick Perry (TX), Finance Chairman

Governor Sonny Perdue (GA), Recruitment Chairman

Governor Linda Lingle (HI), At-Large

Governor Jim Douglas (VT), At-Large

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The Republican Governors Association had one overarching goal this year: win at least one of the governors’ races taking place in New Jersey and Virginia. We knew victory in one race would reverse a troubling trend line for Republicans and winning both would give our Party serious momentum heading into 2010.

We faced tremendous obstacles in New Jersey and Virginia, but thanks to a pair of great candidates and unprecedented investments by the RGA, we picked up two states that for over a decade had been moving more and more Democratic.

These victories will serve as a springboard into 2010, when we have 37 races and an opportunity to reclaim a majority of governorships for the GOP.

Many people share the credit for our successes. First, I want to thank my colleagues for their assistance and support this year, especially Vice Chairman Tim Pawlenty of Minnesota, the Executive Committee, and recent former chairmen Governor Mark Sanford, Governor Rick Perry and Governor Sonny Perdue.

Our victories this year were set in motion in January 2007 when all the governors committed to a four-year plan to win back the majority of governorships for the GOP.

Thanks to strategic targeting and disciplined budgeting, the RGA carried forward more than $14 million into 2009 and had the resources to invest $13 million in New Jersey and Virginia.

Barely more than one year ago, President Obama carried both states by wide margins and there was talk that the Republican Party was hopelessly lost.

Bob McDonnell, Chris Christie, and the RGA proved this year that by focusing on the issues voters care about and by running the right type of campaigns, Republicans can win anywhere in the country.

In Virginia, Bob McDonnell won an impressive victory against an opponent he defeated by just 323 votes four years ago and in a state that hadn’t elected a Republican to the governorship in 12 years.

Bob also led a GOP ticket that became only the second in history to sweep all three statewide offices.

Chris Christie’s winning margin over Democratic incumbent Jon Corzine was the largest for a Republican since 1985. Chris proved that even in a state where registered Democrats overwhelmingly outnumber registered Republicans, we can still win by focusing on pocketbook issues like taxes and jobs.

Bob McDonnell, Chris Christie, and the RGA created a successful model for how we will win many of our targeted states next year. The candidates focused on their positive

message and vision for their states while the RGA made game changing investments and ran tough, on-target independent ad campaigns that focused on their opponents’ records and liberal ties.

Last, I want to thank everyone who helped the RGA succeed this year: the people who came to forums and exchanged ideas so my colleagues and I could help our constituents; RGA Executive Director Nick Ayers and the talented staff; the RGA finance committee; and the many contributors who believe in our cause.

I look forward to a BIG year for the RGA in 2010.

Sincerely,

Governor Haley BarbourRGA Chairman

CHAIRMAN’S MESSAGEHALEY BARBOUR, MISSISSIPPI

“If there was one big winner…it was [the] Republican Governors Association. In what turned out to be a

brilliant move, the RGA ran TV ads attacking independent Chris Daggett. What happened? Daggett got just

6% of the vote, which was down considerably from the double digits he was receiving in polls just a week

or two ago. As one very smart Democratic pollster told First Read, Corzine’s best path to victory was having

Daggett get 12% of the vote, enabling Corzine to win with 45%. As it turns out, Corzine got his 45%. But

with Daggett getting only 6%, that’s how Christie was able to win, 49%-45%.”

- MSNBC First Read, 11/4/09

Governor Barbour speaking at the 2009 RGA Annual Gala.REPUBLICAN GOVERNORS ASSOCIATION

RGA

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NEW JERSEY AND VIRGINIA

The RGA knew that winning either the New Jersey race or the Virginia race would be a formidable challenge. Democrats in Virginia had won the last two governors’ races and the last two U.S. Senate races, and taken control of the state senate.

The Democrats’ gains in Virginia culminated in President Obama becoming the first Democratic presidential candidate since 1964 to carry the state.

On top of all that, Governor Tim Kaine was also serving as chairman of the Democratic National Committee.

In New Jersey, Chris Christie was facing a deep-pocketed incumbent who would spend more than $30 million on the campaign. Christie was limited to spending less than $12 million because he had opted into the state’s public financing system.

Democrats also outnumbered Republicans by 700,000 and have long benefited from the political infrastructure put in place through decades of dominating the state.

We invested a total of $5.5 million in the Virginia governor’s race, which despite McDonnell’s wide victory margin, was still a two-point race in the middle of September.

We knew governors’ races develop earlier than most other campaigns, so we contributed $2 million to McDonnell’s campaign in the spring, allowing him to go up on TV during May sweeps

and define the race on his terms. The issues he introduced in those ads remained central throughout the campaign and they would not have aired if not for the RGA.

In the fall, RGA launched an independent expenditure campaign that decimated Creigh Deeds. We started by running ads in every Virginia media market outside Washington, D.C. detailing Deeds’ record as Richmond’s biggest spender and his plan to hike taxes. After four weeks, the ads had flipped Deeds’ image by twenty points and he had a negative favorability rating downstate.

In October, we began a $1.8 million advertising campaign in the Washington, D.C. media market using footage of Deeds struggling to answer reporters’ questions in a post-debate press conference. The Washington Post called our ads “devastating” and “decisive” to the final outcome.

The RGA’s impact in New Jersey was the difference maker. We spent more than $7 million waging an aggressive independent expenditure campaign that began in April. With Christie unable to spend money during the summer because he opted into

the state’s public financing system, the RGA aired $5 million of broadcast TV ads in the New York City and Philadelphia media markets. We kept the focus on Jon Corzine’s failed record as governor and carried Christie through Labor Day with an 8-point lead. Real Clear Politics published an analysis of our summer efforts in New Jersey titled ”With Christie Spending Limited, RGA to the Rescue.”

We continued running ads throughout the fall and were the first to recognize the threat posed by Independent candidate Chris Daggett. We executed a campaign on television and radio and through the mail that made a vote for Daggett unacceptable for most New Jerseyans. After peaking at 20 percent in the public polls, Daggett finished with less than 6 percent of the vote on Election Day.

We closed in New Jersey by doubling our ad buy in the final week, making sure that Republicans would be on TV at the same level as Jon Corzine.

THE RGA IN 2009: SHIFTING THE PENDULUM OF PARTY MOMENTUM

“There’s no other way to say it: The RGA knocked it out of the park.”

- Politico, 11/4/09

Bob McDonnell on the campaign trail.

“The RGA came in and changed the framework of the election.”

- Creigh Deeds’ media consultant, Politico, 11/4/09

“There is no bigger strategic winner last night than Haley Barbour and the Republican Governors [Association]...It ought to make a lot of Democratic candidates for governor nervous that...Haley Barbour knows what he is doing, and they’re not messing around at that Republican Governors Association.”

- MSNBC’s Chuck Todd, 11/4/09

Chris Christie working the rope line at a rally with supporters. Christie’s victory margin was the largest by a GOP candidate for governor since 1985.

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Victories in New Jersey and Virginia mean that RGA will head into 2010 with 24 governors. The RGA is the only Republican committee to post a net gain since the end of 2006 and we have a plan to reclaim a majority of governorships for the GOP by the end of next year. The four-year plan instituted by governors in January 2007 will result in the RGA carrying forward a record amount of cash-on-hand at the end of the year. With 37 races set to take place, the 2010 electoral playing field will be the most expansive in history. Our strong financial position will ensure we will not miss any opportunities.

HOLDING OUR GROUND

In 2010, the RGA will defend 7 states held by governors who are eligible to run for reelection. In many of these states our incumbents are popular with the voters and have bright reelection prospects. The RGA expects the Democrats to target some of these states but we are confident that with the right strategy we can win every race.

The RGA will also have 11 open seat races in states where our governors are not running again.

There will be high profile races in California, Florida, Georgia, and Minnesota along with elections in Alabama, Connecticut, Hawaii, Rhode Island, South Carolina, South Dakota, and Vermont.

TAKING CONTROL

The RGA will be on offense in a record number of states currently controlled by Democrats. The Democrats will be forced to defend incumbents in 9 states, nearly all of whom are vulnerable.

And with 10 open Democratic seats, we have a tremendous opportunity to redraw the political map. We can compete in every open Democratic state: Kansas, Maine, Michigan, New Mexico, Oklahoma, Oregon, Pennsylvania, Tennessee, Wisconsin and Wyoming.

THE IMPACT OF 2010

Electing more Republican governors has never been more important. The RGA believes Republicans won’t win back the U.S. Senate, House or Presidency until first reclaiming a majority of governorships for the GOP.

Governors and candidates for governor are the leading political figures in their states and can have tremendous impact on down -ballot races. Moreover, they are able to build and organize the critical state Party infrastructure needed to win close elections.

The results of the 2010 elections will also have an even bigger than usual political impact because governors and state legislatures will be redrawing legislative districts in 2011. In many states, the governor has tremendous influence in redistricting.

The Washington Post called RGA’s Virginia ads “devastating” and “decisive.”

- 10/27/09 & 11/4/09

“The strategic smarts demonstrated by the RGA bodes well for Republicansas the focus moves to the 37 governors races on the ballot next November.”

- The Washington Post, 11/4/09THE RGA IN 2010: LOOKING AHEAD

Governors Mark Sanford, Donald Carcieri, and Dave Heineman.

Governor Jim Douglas, First Lady Dorothy Douglas, and Lt. Governor of Hawai’i and gubernatorial candidate James ”Duke” Aiona.

REPUBLICAN GOVERNORS ASSOCIATION

RGA

Political Dollars Spent

Overhead/Fundraising Costs

Money Put In Reserve

1110

“With Christie spending limited, RGA to the rescue.”- Real Clear Politics, 10/8/09

Republican Political Strategist Karl Rove wrote in The Wall Street Journal that the RGA played “a decisive role in both states, spending $13 million on early and extensive TV blitzes. In Virginia, the association tattooed Mr. Deeds as a tax raiser and slippery liberal. In New Jersey, they cut Mr. Daggett's support in half by arguing a vote for him is a vote for Mr. Corzine.” - 10/28/09

*2009 Estimate for money raised.

*2010 Estimate.

The RGA had 5 goals we wanted to achieve in 2009: win at least one governors’ race, raise and carry forward a record amount of money, put the RGA on the national stage with the media, recruit and develop top-tier candidates in all our 2010 targeted states, and become a first-rate policy resource for our governors and candidates.

As you see outlined in this report, we have succeeded in meeting these goals.

We also welcomed three new governors: Alaska Governor Sean Parnell, Arizona Governor Jan Brewer and Utah Governor Gary Herbert. This year has been one of the toughest in history to be a governor and all three are meeting the challenge.

The 22 current Republican governors will soon be joined by Governor-elect Chris Christie in New Jersey and Governor-elect Bob McDonnell in Virginia. The RGA made an unprecedented impact in both races, which we detail throughout this book.

Despite an extremely challenging fundraising climate in the first two quarters of 2009 driven by a weak economy and seemingly shifting political winds, the RGA is positioned to break our fundraising record. The Executive Roundtable (ER), our new personal donor program, is a major reason we will meet our goal. We began this year with just 22 ER members who contributed $25,000 or more to the RGA but expect to end the year with more than 300 members.

Our efforts in the 2010 elections began in earnest this year. We recruited an incredible field of candidates to run for governor. We then spent an intense few days in Idaho this summer equipping our candidates with all the resources they need to run a strong campaign. They heard from some of the brightest minds in our Party and learned what it takes to succeed as a candidate and a governor.

We also produced a Republican Governors Best Practices Book that provides our governors and candidates with more than 350 pages of tested policy ideas that could work in their states.

We could not have done any of this without the support of our governors and our donors. I want to especially thank Governor Barbour – he works tirelessly for our cause and I can think of no better chairman to be leading the RGA through this election cycle.

As a result of the wins in New Jersey and Virginia this year and the early preparation for the 37 races taking place next year, I am confident that we will reclaim a majority of governorships for the GOP by the end of 2010.

Sincerely,

Nick AyersExecutive Director, RGA

EXECUTIVE DIRECTOR’S MESSAGENICK AYERS

RGA BY THE NUMBERSMoney Raised vs. Money Spent by Year

40,000,000

35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

2003 2004 2005 2006 2007 2008 2009*

0

MO

NEY

RAI

SED

Review of Cash on Hand at Beginning of the Year

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

4,000,000

3,000,000

2003 2004 2005 2006 2007 2008 2009 2010*

2,000,000

0

Previous 4 year cycle without 4 year plan Current 4 year cycle with 4 year plan enacted

Record Investments

Virginia$5.5 million

New Jersey$7.3 million

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2009: A YEAR IN REVIEW

The Republican Governors hold a governors-only meeting at the 2008 Annual Conference in Miami.

Governor Haley Barbour and Governor Tim Pawlenty exchange microphones and handshakes in Aspen.

The Republican Governors meet to discuss election goals and strategy at the 2008 Annual Conference.

Chris Christie, joined by his family, accepts the Republican Party’s nomination after winning the primary.

Governor Rick Perry accepts a shotgun in appreciation for his service as RGA Chairman at the 2008 Annual Conference.

Governor Haley Barbour campaigns with Bob McDonnell on the Saturday before Election Day.

Governors John Hoeven, Haley Barbour, and Sonny Perdue host a forum in Sun Valley, Idaho.

Pawlenty(MN) Lynch (NH)

Douglas (VT)

Paterson (NY)

Rendell(PA)

Kulongoski(OR)

Gregoire(WA) Baldacci

(ME)

Patrick (MA)

Carcieri (RI)

Markell(DE)

Christie (NJ)

Rell (CT)

O’Malley (MD)

Lingle(HI)

Schwarzenegger(CA)

Gibbons(NV)

Otter(ID)

Brewer(AZ)

Schweitzer(MT)

Freudenthal(WY)

Ritter(CO)

Herbert(UT)

Richardson(NM)

Parnell(AK)

Rounds(SD)

Hoeven(ND)

Heineman(NE)

Parkinson(KS)

Henry(OK)

Perry(TX)

Culver(IA)

Nixon(MO)

Beebe(AR)

Bredesen (TN)

Beshear (KY)McDonnell (VA)

Perdue (NC)

Manchin (WV)

Barbour(MS)

Doyle(WI)

Quinn(IL)

Daniels(IN)

Granholm(MI)

Strickland(OH)

Jindal(LA)

Riley(AL)

Perdue(GA)

Sanford(SC)

Crist(FL)

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2010 GOVERNORS: PARTY CONTROL

GOVERNORS: 2010 SEATS UP

Pawlenty(MN) Lynch (NH)

Douglas (VT)

Paterson (NY)

Rendell(PA)

Kulongoski(OR)

Baldacci(ME)

Patrick (MA)

Carcieri (RI)

Rell (CT)

O’Malley (MD)

Lingle(HI)

Schwarzenegger(CA)

Gibbons(NV)

Otter(ID)

Brewer(AZ)

Freudenthal(WY)

Ritter(CO)

Richardson(NM)

Parnell(AK)

Rounds(SD)

Heineman(NE)

Parkinson(KS)

Henry(OK)

Perry(TX)

Culver(IA)

Beebe(AR)

Bredesen (TN)

Doyle(WI)

Quinn(IL)

Granholm(MI)

Strickland(OH)

Riley(AL)

Perdue(GA)

Sanford(SC)

Crist(FL)

Herbert(UT)

PARTYRepublican (24)

Democrat (26)

PARTY/RACE STATUSGOP Incumbent (7)

DEM Open Seat (10)

GOP Open Seat (11)

DEM Incumbent (9)

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THE REPUBLICAN GOVERNORS ASSOCIATION

PAST CHAIRMEN1963-66 Gov. Robert Smylie, Idaho

1966-67 Gov. John A. Love, Colorado

1967-68 Gov. John H. Chafee, Rhode Island

1968-70 Gov. Ronald W. Reagan, California

1970-71 Gov. Louise B. Nunn, Kentucky

1971-72 Gov. William G. Milliken, Michigan

1972-73 Gov. Linwood Holton, Virginia

1973-74 Gov. Winfield Dunn, Tennessee

1974-75 Gov. Christopher S. Bond, Missouri

1975-76 Gov. Arch A. Moore, West Virginia

1976-77 Gov. Robert F. Bennett, Kansas

1977-78 Gov. Robert D. Ray, Iowa

1978-79 Gov. Otis R. Bowen, Indiana

1979-80 Gov. Richard A. Snelling, Vermont

1980-81 Gov. John Dalton, Virginia

1981-82 Gov. James R. Thompson, Illinois

1982-83 Gov. Richard D. Orr, Indiana

1983-84 Gov. Victor G. Atiyeh, Oregon

1984-85 Gov. Dick Thornburgh, Pennsylvania

1985-86 Gov. John Sununu, New Hampshire

1986-87 Gov. Thomas H. Kean, New Jersey

1987-88 Gov. Michael N. Castle, Delaware

1988-89 Gov. Mike Hayden, Kansas

1989-90 Gov. John Ashcroft, Missouri

1990-91 Gov. Carroll Campbell, South Carolina

1991-92 Gov. Tommy Thompson, Wisconsin

1992-93 Gov. George V. Voinovich, Ohio

1993-94 Gov. John R. McKernan, Maine

1994-95 Gov. Michael O. Leavitt, Utah

1995-96 Gov. John Engler, Michigan

1996-97 Gov. Terry E. Branstad, Iowa

1997-98 Gov. David Beasley, South Carolina

1998-99 Gov. Frank Keating, Oklahoma

1999-00 Gov. Ed Schafer, North Dakota

2000-01 Gov. Jim Gilmore, Virginia

2001-01 Gov. Tom Ridge, Pennsylvania

2001-02 Gov. John Rowland, Connecticut

2002-03 Gov. Bill Owens, Colorado

2003-04 Gov. Bob Taft, Ohio

2004-05 Gov. Kenny Guinn, Nevada

2005-06 Gov. Mitt Romney, Massachusetts

2006-07 Gov. Sonny Perdue, Georgia

2007-08 Gov. Rick Perry, Texas

2008-09 Gov. Mark Sanford, South Carolina

2009-Present Gov. Haley Barbour, Mississippi

PAST EXECUTIVE DIRECTORS1963-64 Robert B McCall

1966 Carl A. McMurray

1967-69 Richard T. Fleming

1971-75 Buehl Berentson

1976-1980 Ralph E. Griffith

1980-81 Ronald Rietdorf

1981 John L. Stevens

1982-85 Carol A. Whitney

1985-91 Michele M. Davis

1991-95 Chris Henick

1995-96 Paul D. Hatch

1996 LeAnne Wilson

1997 Brian Kennedy

1997-00 Clinton Key

2000-01 Michael McSherry

2001 Duncan Campbell

2001-02 Clinton Key

2002-2004 Edward T. Tobin III

2004-05 Mike Pieper

2005-2006 Phillip A. Musser

2006-Present Nick Ayers

REPUBLICAN GOVERNORS ASSOCIATION

RGA

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Mike Adams—General Counsel

Nick Ayers—Executive Director

Paul Bennecke—Deputy Executive Director and Political Director

Catherine Campbell—Political Assistant

Campbell Engle—Governors Board Director

Molly Flanagan—Governors Liaison

DiAnne Graham—Executive Roundtable Director

Katherine Haltiwanger—Governors Council Director

Kaylee Heathcott—Events Assistant

Adam Kincaid—Director of Policy and Research

Lauren Lofstrom—Governors Roundtable and Governors Club Membership Director

Sarah Lynch—Governors Statesmen and Governors Cabinet Director

Angela Meyers—Finance Director

Tricia Moffatt—Events Director

Maggie Rauck—Finance Assistant

Mike Schrimpf—Communications Director

Millicent Segura—Compliance Assistant

Alex Skatell—Director of New Media

Alyssa Smith—Membership Coordinator

Anne Thompson—Director of Scheduling

Kyle Vitasek—Video Production Coordinator

Tim Whiting—Compliance Director

REPUBLICAN GOVERNORS ASSOCIATION

RGA

REPUBLICAN GOVERNORS ASSOCIATION STAFF

RGA staff with Chairman Haley Barbour. Election Night, 2009.

RGA Staff with Governor Rick Perry in Aspen.

REPUBLICAN GOVERNORS ASSOCIATION

RGA

“We subscribe to the theory that we will not get the U.S. Senate, House, or Presidency back until first reclaiming a majority of Republican Governorships.

The RGA has a plan between now and November 2010 to do just that. We are the only national committee that can accept unlimited corporate and personal dollars.”

Join our cause at www.RGA.org