Governor’s 2015 Word Cloud Speeches

Edmund G. Brown Jr.Inaugural Address

Remarks as PreparedJanuary 5, 2015

Members of the Legislature, the Judiciary, Constitutional Officers, the extended family of my pioneering ancestors and fellow Californians:

An inauguration is always a special occasion but today it is particularly special as I think about that day 40 years ago when my father and mother watched me take the oath as California's 34th governor. It is also special because of how far we have come in the last four years. Then, the state was deep in debt - $26 billion - and our unemployment rate was 12.1 percent. Now, the state budget, after a decade of fiscal turbulence, is finally balanced - more precariously than I would like - but balanced. California has seen more than 1.3 million new jobs created in just four years and the unemployment rate has dropped to 7.2 percent. Thanks goes to the Legislature for cutting spending, the economy for recovering and the people for voting for temporary taxes.

We also have the people to thank for Propositions 1 and 2, which save water and money and prepare us for an uncertain future. These are measures that nearly every Democrat and Republican voted to put on the ballot and nearly 70 percent of voters ultimately approved. And I'm proud to report that as a result, by the end of the year, we will be investing in long overdue water projects and saving $2.8 billion in the state's new constitutionally protected Rainy Day Fund.

And we're not stopping there. Soon we will make the last payment on the $15 billion of borrowing made to cover budget deficits dating back to 2002. We will also repay a billion dollars borrowed from schools and community colleges and another $533 million owed to local governments.

California has made bold commitments to sustain our environment, help the neediest and build for our future. We are leaders in renewable energy and efficiency; we have extended health care to millions; we are transforming our educational and criminal justice systems; we are building the nation's only high-speed rail system; we raised the minimum wage; we are confronting the drought and longer-term water issues; and last, but not least, we have enacted real protections for our hardworking immigrants, including the issuance of long-awaited driver's licenses.

In 2011, we were handed a mess and through solid, steady work, we turned it around. While we have not reached the Promised Land, we have much to be proud of.

As I embark upon this unprecedented fourth term as governor, my thoughts turn to a time long ago when I first entered this chamber, January 5, 1959, for my father's inauguration. I sat there in front of the rostrum, next to my 81-year-old grandmother, Ida Schuckman Brown, feeling awkward in my priestly black suit and Roman collar. My perspective was different then. The previous August, as a young Jesuit living in what was then a pre-Vatican II seminary, I had taken vows of poverty, chastity and obedience. To me, the boisterous crowd, the applause, the worldliness of it all was jarring.

That was 56 years ago, yet the issues that my father raised at his inauguration bear eerie resemblance to those we still grapple with today: discrimination; the quality of education and the challenge of recruiting and training teachers; the menace of air pollution, and its danger to our health; a realistic water program; economic development; consumer protection; and overcrowded prisons.

So you see, these problems, they never completely go away. They remain to challenge and elicit the best from

us.

To that end, over the next four years - and beyond - we must dedicate ourselves to making what we have done work, to seeing that the massive changes in education, health care and public safety are actually carried out and endure. The financial promises we have already made must be confronted honestly so that they are properly funded. The health of our state depends on it.

Educating the next generation is fundamental to our collective well-being. An issue that has plagued our schools for decades is the enormous barrier facing children from low-income families. When my father was governor, he sought to remedy the wide inequities among different school districts by calling for equalization of funding. His efforts were not successful.

Now - decades later - we have finally created a much fairer system of school funding, called the Local Control Funding Formula. Under the provisions of this law, state funds are directed to school districts based on the needs of their students. Districts will get significantly more funds based on the number of students from foster care, low-income families and non-English-speaking parents. This program also breaks with decades of increasing centralization by reducing state control in favor of local flexibility. Clear goals are set, and their enforcement is entrusted to parents and local officials. This puts California in the forefront of educational reform.

After years of underfunding and even borrowing from our local schools, the state now has significantly increased its financial support for education. Next year schools will receive $65.7 billion, a 39 percent increase in four years.

The tasks ahead are daunting: making sure that the new system of local control works; recruiting and training tens of thousands of teachers; mastering the Common Core Curriculum; and fostering the creativity needed to inspire students. Teachers need to be held accountable but never forget: they have a tough job to do. They need our encouragement, not endless regulations and micro-management from afar.

With respect to education beyond high school, California is blessed with a rich and diverse system. Its many elements serve a vast diversity of talents and interests. While excellence is their business, affordability and timely completion is their imperative. As I've said before, I will not make the students of California the default financiers of our colleges and universities. To meet our goals, everyone has to do their part: the state, the students and the professors. Each separate institution cannot be all things to all people, but the system in its breadth and diversity, through real cooperation among its segments, can well provide what Californians need and desire.

Along with education, health and human services constitute a major part of what state government does. And in the past few years we have made massive commitments in this area, which will require increasing levels of spending, the full extent of which is not yet known. For example, two years ago California embraced the Affordable Care Act, dramatically increasing its health insurance coverage under the Medi-Cal program. The state will enroll 12.2 million people during this new budget year, a more than 50 percent increase.

Providing the security of health coverage to so many Californians who need it is the right thing to do. But it isn't free. Although the federal government will temporarily foot much of the bill, new state costs - now and more so in the future - will run into the billions.

Another major state responsibility is our system of crime and punishment. And here too, I will refer to my father's 1959 address. He worried then about California's "dangerously overcrowded prisons." He talked about identifying "those prisoners who should never be released to prey again on an innocent public," but he also said, "we should also determine whether some prisoners are now kept confined after punishment has served its purpose."

We face these same questions today: what purposes should punishment serve and for how long should a person be confined to jail or prison - for a few days, a few years or for life?

In response to a large increase in crimes beginning in the 1970s, the Legislature and the people - through ballot initiatives - dramatically lengthened sentences and added a host of new crimes and penalty enhancements. Today, California's legal codes contain more than 5,000 separate criminal provisions and over 400 penalty enhancements, an arcane and complex mix that only the most exquisitely trained specialist can fathom. And funding has grown proportionately: during the 1970s we had 12 prisons holding fewer than 30,000 prisoners and corrections spending was only 3 percent of the budget; our system then grew to a peak of 34 prisons, with an inmate population of 173,000, eating up more than 10 percent of our budget dollars.

Four years ago, the United States Supreme Court held that our prisons were unconstitutionally overcrowded and imposed strict capacity limits, far below the number of inmates that were then being held.

Clearly, our system of crime and punishment had to be changed. And through the courts, the Legislature and the voters themselves, a number of far-reaching reforms have been enacted. The biggest reform is our realignment program, which places tens of thousands of lower-level offenders under county supervision. More recently, a federal three-judge panel ordered further measures to reduce prison overcrowding. And the voters, through Propositions 36 and 47, modified our criminal laws to reduce the scope of the Three Strikes law and change certain felonies into misdemeanors.

All these changes attempt to find less expensive, more compassionate and more effective ways to deal with crime. This is work that is as profoundly important as it is difficult, yet we must never cease in our efforts to assure liberty and justice for all. The task is complicated by our diversity and our divisions and, yes, by shocking disparities. Since time immemorial, humankind has known covetousness, envy and violence. That is why public safety and respect for law are both fundamental to a free society.

As we oversee these important changes to education, health care and public safety, we must not lose sight of our long-term liabilities. We have to face honestly the enormous and ever growing burden of the many commitments we have already made. Among these are the costs of pensions and retiree health care, the new obligations under the Affordable Care Act, the growing government costs of dealing with our aging population, bonded indebtedness and the deferred maintenance on our roads and other infrastructure. These specific liabilities reach into the hundreds of billions of dollars.

My plan has been to take them on one at a time. We have now taken steps to deal with the unfunded teachers' pensions and those of the public employees. For the next effort, I intend to ask our state employees to help start pre-funding our retiree health obligations which are rising rapidly.

We must also deal with longstanding infrastructure challenges. We are finally grappling with the long-term sustainability of our water supply through the recently passed Proposition 1 and our California Water Action Plan.

Equally important is having the roads, highways and bridges in good enough shape to get people and commerce to where they need to go. It is estimated that our state has accumulated $59 billion in needed upkeep and maintenance. Each year, we fall further and further behind and we must do something about it.

So I am calling on Republicans and Democrats alike to come together and tackle this challenge. We came together on water when many said it was impossible. We came together - unanimously - to create a solid Rainy Day Fund. We can do it again.

Finally, neither California nor indeed the world itself can ignore the growing assault on the very systems of nature on which human beings and other forms of life depend. Edward O. Wilson, one of the world's preeminent biologists and naturalists, offered this sobering thought:

"Surely one moral precept we can agree on is to stop destroying our birthplace, the only home humanity will ever have. The evidence for climate warming, with industrial pollution as the principal cause, is now overwhelming. Also evident upon even casual inspection is the rapid disappearance of tropical forests and

grasslands and other habitats where most of the diversity of life exists." With these global changes, he went on to say, "we are needlessly turning the gold we inherited from our forebears into straw, and for that we will be despised by our descendants."

California has the most far-reaching environmental laws of any state and the most integrated policy to deal with climate change of any political jurisdiction in the Western Hemisphere. Under laws that you have enacted, we are on track to meet our 2020 goal of one-third of our electricity from renewable energy. We lead the nation in energy efficiency, cleaner cars and energy storage. Recently, both the Secretary-General of the United Nations and the President of the World Bank made clear that properly pricing carbon is a key strategy. California's cap-and-trade system fashioned under AB 32 is doing just that and showing how the market itself can generate the innovations we need. Beyond this, California is forging agreements with other states and nations so that we do not stand alone in advancing these climate objectives.

These efforts, impressive though they are, are not enough. The United Nations' Intergovernmental Panel on Climate Change, backed up by the vast majority of the world's scientists, has set an ambitious goal of limiting warming to 2 degrees Celsius by the year 2050 through drastic reductions of greenhouse gases. If we have any chance at all of achieving that, California, as it does in many areas, must show the way. We must demonstrate that reducing carbon is compatible with an abundant economy and human well-being. So far, we have been able to do that.

In fact, we are well on our way to meeting our AB 32 goal of reducing carbon pollution and limiting the emissions of heat-trapping gases to 431 million tons by 2020. But now, it is time to establish our next set of objectives for 2030 and beyond.

Toward that end, I propose three ambitious goals to be accomplished within the next 15 years:Increase from one-third to 50 percent our electricity derived from renewable sources;Reduce today's petroleum use in cars and trucks by up to 50 percent;Double the efficiency of existing buildings and make heating fuels cleaner.

We must also reduce the relentless release of methane, black carbon and other potent pollutants across industries. And we must manage farm and rangelands, forests and wetlands so they can store carbon. All of this is a very tall order. It means that we continue to transform our electrical grid, our transportation system and even our communities.

I envision a wide range of initiatives: more distributed power, expanded rooftop solar, micro-grids, an energy imbalance market, battery storage, the full integration of information technology and electrical distribution and millions of electric and low-carbon vehicles. How we achieve these goals and at what pace will take great thought and imagination mixed with pragmatic caution. It will require enormous innovation, research and investment. And we will need active collaboration at every stage with our scientists, engineers, entrepreneurs, businesses and officials at all levels.

Taking significant amounts of carbon out of our economy without harming its vibrancy is exactly the sort of challenge at which California excels. This is exciting, it is bold and it is absolutely necessary if we are to have any chance of stopping potentially catastrophic changes to our climate system.

California, since the beginning, has undertaken big tasks and entertained big ideas. Befitting a state of dreamers, builders and immigrants, we have not hesitated to attempt what our detractors have called impossible or foolish. In the last four years, in the last 40 years, yes ever since Gaspar de Portola in 1769 marched along the King's Highway, California has met adversity with faith and courage. We have had setbacks and failures, but always in the end, the indomitable spirit of California has triumphed. Through it all, through good times and bad, California has been blessed with a dynamism and historic trajectory that carries each generation forward.

Whether the early explorers came for gold or God, came they did. The rest is history: the founding of the Missions, the devastation of the native people, the discovery of gold, the coming of the Forty-Niners, the

Transcontinental Railroad, the founding of great universities, the planting and harvesting of our vast fields, oil production, movies, the aircraft industry, the first freeways, the State Water Project, aerospace, Silicon Valley and endless new companies and Nobel Prizes.

This is California. And we are her sons and daughters.

Yes, California feeds on change and great undertakings, but the path of wisdom counsels us to ground ourselves and nurture carefully all that we have started. We must build on rock, not sand, so that when the storms come, our house stands. We are at a crossroads. With big and important new programs now launched and the budget carefully balanced, the challenge is to build for the future, not steal from it, to live within our means and to keep California ever golden and creative, as our forebears have shown and our descendants would expect.

STATE OF THE STATE ADDRESS 

Governor Doug Ducey As Prepared For Delivery 

January 12, 2015 

Speaker Gowan, President Biggs, House Leaders Montenegro and Meyer, Senate Leaders Yarbrough and Hobbs, Chief Justice Bales, Members of the Judiciary and Legislature, fellow Arizonans – thank you all very much, and good afternoon. 

It’s been quite a day in this capitol, and the highlight was your swearing in. Elective office is an honor that rarely comes easy, and I congratulate and welcome each one of you. 

Whether we’ve served before or we are new to the place, all of us have arrived here to find serious challenges waiting on us. The test is whether we answer them in a serious way, without trying to buy time, or to sidestep obvious problems that need to be dealt with right away. Putting off problems is certainly not what I had in mind in seeking this office. And I know that each of you would say the same about the positions of trust that you hold by right. 

These next few weeks, we could all use the fresh outlook of newcomers, not trapped in the old ways of thinking about state spending, taxes, public education and the role of government in general. In government, just as in business, settled assumptions are not always correct assumptions. Conventional wisdom is not always wisdom. And the political parties do not have to be hostile parties, set against one another in every case. 

This, at least, will be the spirit of my administration, as I work with you in every way I know how. Naturally, I hope it will be returned in kind. I think we’ll all find that the best achievements are shared achievements. A week into this job, I won’t press the case that the state of the state is any better than it was last Monday. But I can tell you this for sure: If you and I can see our way clear to those kinds of shared achievements, the people of Arizona will do the rest, and the state of our state will be confident, strong and rising. 

But we can’t do it without fiscal responsibility. In real life, when families or businesses take stock of how they’re doing, the answer has a lot to do with the state of their finances. Well, it works the same in government. And turning to our state’s checkbook, we start with the number one billion. In dollars,

that would be the difference between spending and revenue if we were to do nothing about it these next two years. 

Now maybe I’m of the old school of economics, but this strikes me as a problem. And I am just not persuaded by appeals to raise taxes so that we can spend more. I look at it this way: If the problem is spending more than we have, the solution cannot be even more spending. Instead of demanding more revenue from the people, I suggest we demand more fiscal responsibility from our government. 

So, with all the care and debate the people expect of us, and with as little delay or complaint as possible, let’s put this budget in balance – and let’s keep it there. 

This Friday, just in time for some weekend reading, I will deliver my budget, on flash drives to every member of this Legislature. It’s my best effort to deal with a tough situation. Just as I promised in last year’s election, my team and I gave a thorough look to current state expenditures. In reviewing some items, we asked questions that hadn’t been asked in a while – questions like, “Why does the state of Arizona need an office and a paid lobbyist in Washington, D.C.?” The short answer is, we don’t. So that office and all its expenses will soon be gone, and there will be at least one less lobbyist in Washington. 

But we didn’t stop there. To balance the books, we’re going to institute a state government hiring freeze – with protections for vital areas, like public safety and child safety. However, when it comes to bureaucracy, we’re cutting back. The government can’t take on any new expenses when we can’t afford the ones we already have. 

Our budget does what budgets are supposed to do. It prioritizes vital commitments that Arizonans value the most – public safety, justice, classrooms, and aid to the needy and vulnerable. My budget doesn’t just give the appearance of spending discipline. It offers the reality of spending discipline – with decisions that are timely, real and permanent. 

And to that end, I propose this: Our state needs an unbiased inspector general mandated to find more areas of savings – and where corruption exists, shine a light on it. This public advocate would be equipped with a badge and subpoena power to go in, ask the tough questions and be a watchdog for the taxpayers. I want to work with you – the Legislature – to make this happen. 

With a tight budget we’ve all heard the calls these past few weeks to just go ahead and raise taxes, now that we’re all safely in office. In this case, as the argument goes, it would be relatively easy because all we’d have to do is cancel all or some of the tax reforms that are currently taking effect. They were passed in a previous Legislature, after all, and circumstances have changed, so let’s just renege on our commitment. 

Any way you look at it, cancelling Arizona’s tax reforms is the wrong way to go. They were designed to put more life in our economy and that need is stronger than ever. Business people – the ones we count on to create jobs – have been making plans around them, plans to build, expand and make new hires. If we change our plans, they’ll change theirs. It’s a high price to pay for going back on your word and that is why I say: Not on our watch. 

Another essential of good government are tax rates that are predictable and reasonable. Yet every year, Arizona taxpayers are faced with the threat of a tax increase because we don’t tie our income tax to inflation. The result is an automatic tax increase. Let’s end this by permanently indexing our income tax to inflation. This is an issue of fairness and we owe better to all Arizonans – so let’s get it done this session. 

In all that we do this year at this capitol, let’s think big. And let’s remember this: The business at hand is not to expand Arizona’s government – it is to expand Arizona’s economy. 

By some measures, our economy has been growing, but not nearly at levels we know we can reach. And it’s not just overall performance, either – we want the kind of growth and opportunity that reaches everyone. 

Last week, I signed an order placing a moratorium on new regulations in the executive branch. It was a good beginning, but only a beginning. 

There is also the matter of many state regulations already in place, often for reasons that nobody even remembers. Our small businesses have to deal with all these little rules all the time, just because they’re on the books and nobody’s bothered to change them.

I’m instructing the directors of every agency to conduct a top-to-bottom review of regulations, and then to send me a list of all the ones we can do without. It’s likely to be a long list. Wherever we find any regulation that is outdated, irrational, unfair, or destructive to free and honest enterprise in Arizona – that regulation will be gone. 

While they’re at it, agency directors will also be reducing timeframes for permits and licenses. Our government needs to operate at the speed of business. And we have a Regulatory Review Council that’s stacked with lobbyists? Who’s advocating for the small business person, the startup, the entrepreneur who can’t afford an attorney to navigate the endless maze of bureaucracy? I ask that you pass a bill requiring a small business owner on that Council and I’ll sign it. 

You’ll have my full attention when you send me any bill that has the purpose of advancing free enterprise and spreading opportunity. When that’s the aim, there is always more to do. I am frankly not impressed at all when I read that Arizona is still the tenth, or the fifteenth, or whatever, best place in America for finding work or doing business. In the competition among states our goal is not to be lost in the pack, somewhere between California and Texas. Our goal in Arizona is to be the best place in America to work and do business. 

That same thinking should apply to education. In Arizona public schools, we can do better. 

A snapshot of Arizona public education came in a survey a few years ago. It measured some basic knowledge among students, on matters where knowledge should be assumed. It was an elementary civics test, along the lines of the test required of every new citizen. And when 96 percent of our kids could not pass, you know something is missing. 

Justice Sandra Day O’Connor has called this the “quiet crisis in education.” President Reagan told us, “If we forget what we did, we won’t know who we are.” And John Adams had it right too, remarking that every child in this country should be “instructed in the principles of freedom.” 

To appreciate all this wisdom, however, it helps to know who Justice O’Connor, President Reagan and John Adams are. But for too many of our kids, those names sadly don’t ring a bell. 

This is an issue that can and should unite us. These are our children, and not long from now, it will be for them to vote on who sits in your chairs and who stands at this podium. How can we expect them to protect the principles on which this country was founded, if we are not preparing them for that task right now? 

It’s time to make this right and there’s a bipartisan bill – the American Civics Bill. Send it to my desk, and I’ll sign it immediately. 

It’s also time to take charge of our public schools and take responsibility for their results. 

For too long, the federal government has forced a one-size-fits-all model on our education system. Politicians and bureaucrats on the other side of the country, with no understanding of our state or the needs of our teachers and students, have sought to impose their standards and their will on our youth. 

In Arizona, educational excellence is a priority. For the next four years, I intend to lead under a “Classrooms First Initiative.” Our goal is simple: To improve outcomes in the classroom for all our children. That’s why I propose to spend not less in the classroom than last year, but more. 

Right now we spend far too much on administrative costs – on overhead – and that’s got to change. So this morning, I signed an executive order assembling a team of education and finance professionals charged with scrubbing every dollar in every formula in statute in order to identify ways to get maximum dollars into the classroom, where it can do the most good for our children. 

We know where education happens, between a teacher and a student. In my administration, we will honor teachers and the good work they do. 

Many teachers will agree with me on this, the quality of a child’s education should not be determined by what neighborhood their parents can afford to live in. 

Our state has some great public schools, among the best in America, but unfortunately because of yesterday’s policies, many families are shut out. They sit and wait, as their sons and daughters get another year older and their dreams of providing them with the best public education possible slip farther and farther away. 

This has gone on too long; I will not accept this inequality. 

How many Arizona children should have equal access to our best public schools? My answer is – all of them. 

Here’s what makes the situation even more troubling: Right now, there are nearly 400,000 empty seats in our public school system. In fact, some public schools are completely vacant. These are educational assets, funded by the taxpayer, meant to benefit our children, and they are going to waste. It’s time to put these assets back to work. 

So here’s the plan: Let’s make open enrollment and parental choice a reality and not just a talking point. Let’s open the doors and make those empty seats available to our best public schools. 

By creating what I call the “Arizona Public School Achievement District,” we can give our state’s best public schools – quality schools that are at capacity or have waiting lists – new and innovative options. 

These public schools would have the ability to apply for use of the empty schools and empty classrooms, so we can put those kids where they belong – in the public school of their parent’s choice. 

We also need to make capital available to our public schools that are ready to expand. 

My budget will reserve resources that our best public schools can borrow against to bring down their debt service costs. And half the projects funded will be in low income communities. Every dollar not spent on debt service can go to more classrooms, more teachers, more students getting the education they deserve, regardless of where they live. 

For consistently underperforming schools, it’s time for a change in management. First rate public school superintendents, principals, teachers and operators make the difference. They are the ones who give our kids a shot at a real education. So when local control intended to benefit children, turns into organized chaos to protect bureaucrats, expect a united Legislature and chief executive to make a change. 

Looming over all our discussions about education is a court order demanding payment of money we don’t have.

Here’s the short of it, elected leaders acted in good faith during the Great Recession to keep statutory commitments to education, while also keeping this state afloat.  And now the courts have given us a choice – between a fiscal crisis or a constitutional crisis.

So I say, to you – the Legislature: Settle this lawsuit.

To the education community: Be reasonable – and put this behind us.

It’s time to stop paying lawyers and start paying teachers.

And Attorney General Brnovich: Dust off your dictionary and help us out here.  The words of the statute are clear.  “And” means “and;” “Or” means “or.”

Of course, improving the lives of Arizona children can’t and won’t end when they leave the classroom.  Too many of our kids find themselves in difficult family situations because their dads aren’t being dads.

So guys, I’ve got a message for all of you out there: Wherever the authorities know of a deadbeat dad in Arizona – find him and hold him to his responsibilities with the full force of law.  If you are old enough to father a child in Arizona, you’re old enough to assume financial responsibility for that child.  For single moms being stiffed by deadbeat dads, you need to know: “We’re on your side and help is on the way.”

With all our renewed focus on opportunity in Arizona, it’s worth remembering that the best of these can be opportunities to serve.

In November, I launched an effort during the holiday season called “Serving Arizona” to highlight volunteer and charitable efforts throughout our state.  Visit these food banks and shelters and you’ll see first-hand those who are struggling the most in our communities.  You’ll also see the best of our state – people taking a little bit of time out of their busy days to help those most in need.  Maybe it’s serving lunches.  Maybe it’s packing food baskets.  Maybe it’s reading to a child.  Whatever it is, these selfless Arizonans are an example for those of us elected to represent them. 

Christmas season has come and gone, but Serving Arizona has not.  Giving more to charities close to our heart is always a good thing, but there is nothing like giving your time, and I hope with this effort to encourage that spirit.

Our state isn’t without its challenges, but we have the leadership to reach our full potential.  And I’m not just talking about here in this capitol.  I’m talking about the leadership of all Arizonans.  The mom who’s doing everything she can to make sure her children have opportunities she didn’t.  The entrepreneur who is risking everything she’s got to chase her dreams and the teacher who will stay late tonight to help tutor one of his students.  It’s about all of us.  All Arizonans have a stake in making this state the best place in America.

In less than a month, our state will host the Super Bowl for its third time.  As a sports fan, I’m pretty excited.  I know you are too.   It’s a prime opportunity to showcase Arizona to the rest of the country.  It’s a chance for everyone in the world to know what we know – that Arizona is the place to be.

Members of the Legislature, I’m grateful for this chance we have to do good for our state.  This is why the people sent us here.  So let politics stand down for a while.  Let future elections wait their turn.  Let’s give our best for Arizona.  It’s time to get to work.

Thank you and God Bless.

Wyoming Governor Matt Mead's 2015 State of the State Speech 

Good morning. Good to see you. Thank you.

Good morning. Thank you very much. Thank you. Thank you. Thank you. Please have a seat. Thank you. Thank you very much. Very nice. Thank you. Thank you.

Good morning. Thank you for the warm welcome. I don't know that it can get any better than that. Thank you very much. It's very kind.

Mr. President, Mr. Speaker, members of the 63rd Wyoming Legislature, Secretary Murray, Auditor Cloud, Treasurer Gordon, Superintendent Balow, Federal Circuit Judge Phillips, Chief

Justice Burke, all members of the judiciary, all military and veterans, fellow citizens, good morning. Thank you all for being here.

And thank you for those who are participating via the Internet or other media. We welcome all of you. And we're pleased that technology has many benefits, including the freedom to be wherever you want to be in Wyoming or anywhere else to take part in these proceedings.

I want to say good morning to my family. For those of you who have been here for four years, you've seen some growth in the -- in the kids. I mentioned at the inauguration that one place on the governor's residence wall -- which we'll make sure we get painted before we leave -- we have marked the height of our children over the years, and it's remarkable. And we think they have grown not only in height, but in other ways, and in many ways they've grown up with this body. You all have seen them grow up. But it causes us all to reflect upon one of the main reasons we're here, for our kids and our grandkids.

And I can't imagine being here without the love and the support of Carol and Mary and Pete. I thank all of you for helping me get here and helping me do this job.

I think it was my first state of the state, before I gave it, Pete wrote me a note. And his handwriting, you have to decipher a little bit back then, but he said, "Good luck, Dad. You'll do great." He signed it not Pete, but "best son ever." I'm lucky to have the confidence of my family and a confident family.

These are exciting times. It's a new year, a new legislature. We have some new faces in the legislature, in leadership and in our statewide offices. And I look forward to working with all of you. As I have told this body in the past, we are so fortunate in Wyoming to have a citizen legislature. Every one of you here have made sacrifice to be here. You leave your homes, your family, your work. And before we start this session, I just want to say to the President, to the Speaker, to all of you, how much I appreciate and how much it means to the entire state to have your service, and I thank you for that.

I'm excited about the state and where we are. As I've done in the past, I have asked citizens of Wyoming to be here with me today so that I can recognize them, because we recognize that as the state is strong, it's because individual citizens do so much and have committed so much to our state.

And so first I want to start with Max Maxfield.

Max served two terms as State Auditor, followed by two terms as Secretary of State. Last year, as you know, he decided to retire from state service. Max served Wyoming with energy, optimism, intelligence, honesty and civility. Max and Gayla, we are sad to say farewell, but we wish you all the best. You both have served Wyoming, making a better place for us all. You are friends. You are dear friends.

And I ask all of us to join me in recognizing Max and Gayla and their service. Max, would you please stand.

We are fortunate to have with us, as we've had in years past, members and representatives of the Shoshone and Arapaho Tribes. And I got to meet with them before I came up here today, and they were gracious in letting me know that they had time on their hands, and they were -- they offered to write my speech for me, and which I thought was a wonderful thing. That message wasn't passed on through staff, otherwise I would have taken them up on that.

But there's no question we have challenging issues to deal with, which is sometimes the case with sovereigns. But no matter what, we do remain friends and neighbors with a common interest, that being a great affection for this beautiful place, Wyoming, we all call home.

If the tribal members would please stand. We always enjoy the opportunity to welcome you. Thank you for being here.

One of the great privileges I've had in my role as governor is to get to work with the men and women of our Guard. And I do wish on occasion that I could articulate what my eyes have seen of the work the men and women of the Guard do. It's absolutely amazing. And when I see them off as they're being deployed overseas, know this, that these men and women -- often it's very early in the morning -- they are hugging their spouse good-bye. The grandparents are hugging them good-bye. And sometimes you'll see a young mother or a young dad kissing a young infant good-bye. It's a remarkable thing, because each one of them stand, raise their hand, and agree with everything it takes, including their life, to serve and defend this country.

We have about 2800 members in the Guard. Men and women of the Guard are ready for duty here at home and when duty calls them to a distant land. The Guard fights fires and much more, including fighting the war on terror. Wyoming soldiers have been busy. They've been in the thick of it; deployed overseas, serving bravely, missing home and family, as we miss them and anticipate their return.

Service and sacrifice. Service and sacrifice, whether for a single tour or over the course of a long military career, are no small things to give. They are huge, and we are deeply grateful.

General Luke Reiner, Wyoming's Adjutant General, is here. And I would say, General, we appreciate what our Guard, what all our military members, what our vets have given for Wyoming and for America. General, we want you to stand so we may recognize you and the Guard.

Today, this morning, I think it's appropriate we remember John Schiffer. John served as a Wyoming senator for over 20 years, from 1993 until his death last June. In his long public service career John served in numerous leadership positions, including Senate President. He was an advocate for the Natural Resource and Wildlife Trust, and, among other things, was a supporter of education and mental health programs. He brought great intellect and a rancher's common sense to the legislature, and he had those big, big strong hands that were representative of his big heart and care for Wyoming.

He made a positive difference for each of us, and made a positive difference for all of Wyoming. And I ask you now to join me for a moment of silence in John's memory.

I'm thinking today also of 12 hours in the cold, in the dark, those who battled the blaze in Dubois on December 30th. We thank you.

The fire was a tragedy, and we are thankful there were no deaths or injuries. The town will rebuild, as unique and wonderful as ever. I have no doubt. To the people of Dubois, please know you also are in our thoughts and our prayers.

Now, I have broken my speech into two parts, two big parts. I want to first talk about the last four years, and then talk about where we should go from here. The last four years... We did what we said we were going to do, and we've gotten results, and it's the way government should operate. We built upon the success of prior governors and prior legislators, and together we have made great strides for Wyoming.

When I took office in January 2011, Wyoming's unemployment rate was about 6 and a half percent. The state budget has doub -- had doubled the previous decade, and the state was coming off a period of government expansion.

High-speed broadband was limited. Only two cities had Ethernet at their schools. There was no state energy strategy. There was no water strategy. And in my mind, there was a growing, growing need to push back against federal overreach.

To set a course -- to set a new course there was no time to waste. Nine days into office, my first state of the state address, I announced my vision for Wyoming. I said we would be focusing on the economy, focusing on broadband, infrastructure, assisting local government, consolidating state government, education and federal actions that were adverse to our state.

As part of our focus on the economy, we would continue to support our big three industries -- energy, tourism and ag -- and that we would also seek to diversify our economic base. This was a tall order, but this is Wyoming, and we do not shy away from big tasks. So we took this on, all of it, and four years later we see the difference.

Starting with the economy. We made a real push for jobs, economic growth, diversification and supporting our big three. Here's some of the highlights. We have been able to welcome new enterprises, for example, NCAR, Microsoft, Searing Industries, Magpul, HiViz and oil-torail facilities.

We've been developing and beginning to implement our state energy strategy. In the last session you provided funding to continue with initiatives in energy strategy.

I have, and some of you have, gone to trade missions to places such as Hong Kong, Canada, South Korea and Taiwan to promote trade and tourism.

We've been funding predator control and brucellosis management and helping provide relief for drought and flooding.

We've provided strategic incentives and recruiting hard for data centers. Our efforts are paying off. Microsoft recently opened an innovative biogaspowered data center. The company is also investing 274 million in data center expansion, bringing its involvement in Wyoming to nearly half a billion dollars.

In December, Wyoming was recognized as a leader in the country for data center recruiting. This is the third year in a row Wyoming has received that recognition. We have built our tourism in established markets, and established new ones as well. We love telling people about all Wyoming has to offer, and we love to show it to them.

Two years ago we added a new sporting event in Wyoming, the Cowboy Tough Adventure Race, to annual summer activities. For those of you that haven't seen that, it's got to be the toughest race in the world, as far as I'm concerned. It is truly cowboy tough.

On July 10, 2015, Wyoming will mark the 125th anniversary of statehood. This will be another special occasion for all of us to enjoy and to invite visitors from near and far.

Our focus on the economy has paid off. We see the success and we see national recognition of our success.

Wyoming has received a number of accolades recently, including: The highest possible rating from Standard & Poor's for the last four years; we have the number one ranking for 2015 as the state with the best tax climate for businesses; we have been ranked as having the best return on investment for taxpayers in 2014; we have the lowest state, lowest tax -- local tax burden; we have the lowest foreclosure rate in the nation; we are ranked now as the second-most pro-business state in the country; we are third best in economic performance. And in 2014, more Wyoming people were employed than ever before in the history of our state.

These rankings are important not for boasting rights, but they show the progress that we have made in four years. The economy was a priority four years ago, and we've made great strides.

Broadband was a priority, and we've made great strides. This brings opportunities -- broadband brings opportunities for schools, businesses and individuals and for development of a tech center. I mentioned that when I started, only two school districts had Ethernet speed. Now everyone, every school district, all 48, have Ethernet speed.

We've increased high-speed connections to our schools by over 1900 percent. We've held summits to move broadband forward in 2012, '13 and '14, and we'll continue to do so.

And last year, as you all know, I asked for funding for the Unified Network. This network, I'm pleased to report, as of today is fully built. We got it done in less than a year. This network brings an even higher standard of broadband to our state, more fiberoptic connections and gigabit speeds. The state has been a facilitator, helping on rights-of-ways, providing infrastructure upgrades for our schools and government, and they'll be also available to the private sector. We all, you, prepared the ground, but the private sector is now delivering the goods.

Ron McCue, who is president of Silver Star Communications. Last November Silver Star launched an initiative to offer gigabit-level broadband to communities in Western Wyoming. Efforts like this make Wyoming more competitive for tech businesses, for people who want to run global businesses from a home base in Wyoming, for everyone who uses a computer.

Gigabit-level broadband gives Wyoming the type of access usually associated with large cities. Such access makes Wyoming a leader in broadband and a player in tech. We have not been called these things in the past, but we are now. We should be proud of this effort to diversify our economy.

Ron, we recognize what business leaders like you are doing to make Wyoming a leader in broadband and a player in tech. Ron, please stand so we can recognize your effort.

So I've talked about the economy, and I've talked about broadband. Another priority four years ago was infrastructure. We know that for communities to thrive, for quality of life, for economic growth, and for commerce generally, infrastructure is essential. We've been paying attention to Wyoming's infrastructure. Not counting school construction, here are a few examples: We've provided funding for the Gillette Madison water project and recognized future funding needed for completion; we passed a 10-cent per gallon gas tax increase -- that produces $47 million for the state for road maintenance; we funded a new UW College of Engineering -- 95 million, and $15 million match for construction; we've provided initial funding for five state facilities that need renovation, including the State Hospital, the Life Resource Center, the Veterans Home. You set aside 35.7 million to start and 20 million -- 20 million more from the fiscal -- for fiscal year 2015. We have provided funding for municipal landfills; we've supported the business council loan and grant programs for community development.

We have and should continue to invest, and we should continue to save. And the fact is, we have seen record savings. And we can be proud of that. But we have opportunities, again not down the road, but this session, to invest in more infrastructure. We do this because we know that Wyoming, the Wyoming we enjoy today, was built by those with vision and with courage. Our forbearers did not view the role of government as a bank. They were not hoarders, but builders. As we judge their work, we will also be judged on what we build for future generations. What opportunities have we provided for our children and our grandchildren? Have we made Wyoming a better place? Another priority four years ago, and still, was assisting local government. Work gets done and lives are lived in our cities and towns and our counties. We know how great it is to live here, and we want our communities to keep doing better, for residents to attract more businesses and visitors.

We have additional funding -- we have provided additional funding to local government each of these last four years. And during my time in office, more than once I have suggested a longer-term solution for funding local government. That included looking at a portion of the statutory 1 percent diversion. Added funding always matters, but when it comes a year at a time, in differing amounts, or perhaps not at all, this tends to hamper local planning and development evidence.

There's no question we have done well by local governments these past four years, but we still need to decide on longer-term funding for local government that they can count on, and this is the time -- now is the time to work towards a solution.

One of the other areas that we have stressed these last four years is consolidating government. And we have done so. For example, we have addressed backlogs and delays; we got all state employees on the same email system; we have merged two agencies; we have developed a meaningful employee evaluation system; we have consolidated IT services; we reduced the standard budget by over 6 percent, reducing ongoing spending by over $60 million a year; we began a rules initiative for state agencies, and have significantly reduced roles -- rules, some have reduced by almost 50 percent; and we have amended the state law to allow further reductions to provide an updated database, which will give everyone better access to rules; we have fewer employees now than we did four years ago.

State government has become more effective and more efficient. We are doing more with less.

Also a priority four years ago, and now, is education. As a state, we make sizable investment in education through block grants and school construction funding. In turn, such an investment should yield the best education possible for our kids.

We started work on education accountability in 2011, and it continues. I note this session you will consider a bill to improve the state assessment system. We have, over the last four years, increased awards under the Hathaway scholarship program. We broke ground for the Enzi STEM facility at UW. We provided funding for UW science programs and facilities, and more is in my budget this year. I ask for your support on that proposal.

We joined Complete College America, CCA. We know the demands for our students to have a postsecondary education is rising. CCA is another tool to help Wyoming students get the education, including, importantly, Career Technical Education they need to succeed.

We now have STEM Summits in Wyoming. And last April I attended the rollout of the STEM initiative for Sublette County School District 1. Fact is, STEM education is important at every level, and I look forward to more events like this.

All this work on education is lost without great teachers, teachers like Tyler Bartlett. Tyler is the 2015 Wyoming Teacher of the Year. He's a math teacher at Newcastle Middle School. He's in his sixth year of teaching and loves his job.

When he received his award he said, "There's a lot going into being -- going -- there's a lot that goes into being a successful teacher. Sometimes we focus too much on teaching and not enough on learning. I think the real bottom line is that students have to be learning."

Wise words, and Tyler puts them to work in his classroom, getting students engaged in their own learning. Tyler teaches a STEM subject, and is representative of the excellent teachers that we have in Wyoming.

Tyler, please stand so we may recognize you.

Congratulations, Tyler.

We will keep working on education, every level -- early childhood education, K-12, our community colleges and UW -- to get things right. For the future of our state we have to get education right.

Another priority four years ago, and now, is federal actions that adversely affect our state. And I will say Wyoming has been very aggressive these past four years in opposing federal actions that affect our state. Sometimes we prevail. Fact is, sometimes we don't. But we know we cannot look the other way because the impacts are too great. We must continue together to stand against federal overreach.

One of my first acts in office, in fact, was to ask the Wyoming Attorney General to join the constitutional challenge to the ACA. This is an important lawsuit, and Wyoming had to be part of it. Many of us, including myself, did not like the result, but Wyoming did need to be involved.

We've also been very active in filing or joining actions to support grazing rights. We in Wyoming know how valuable ag is, not just to our state, but, in fact, this country. It is one thing to not -- as a country to not be able to fuel yourselves, it's another thing entirely not to be able to feed yourselves. We have to continue to have strong support for ag.

In December we filed a case in Wyoming Federal District Court to require BLM to better manage wild horses.

We continue to fight for Wyoming's regional haze plan, and it's a good plan, for addressing visibility. Last fall, the Tenth Circuit upheld the state's plan regarding sulphur dioxides. And recently, we filed our brief in the Tenth Circuit in support of the state's plan as it relates to nitrogen oxides.

We have, as many of you know, most frequently done battle with the EPA. The reason is simply EPA rulemaking, under President Obama's administration, has been troubling at best. Wyoming is opposing the power plant rules, the proposed rules for waters of the U.S., as well as many other EPA act -- EPA actions, and we'll continue to do so.

Wyoming's fight against federal regulatory overreach will not stop. Along with the Attorney General, along with the support of this body, we must all continue fighting for Wyoming.

Looking back at the past four years, there's some other matters I'll mention. We have reduced the DD wait list. We've undertaken job initiatives, including those with -- for those with disabilities. We will continue our work in this area with unemployment -- the Employment First concept.

At my direction, DFS has appointed a statewide homeless coordinator -- coordinator, and will create a 10-year plan to address homelessness. We have renewed our focus on suicide prevention with a statewide initiative.

Regarding worker safety, I support and I appreciate the safety alliances formed by the oil, gas, transportation, refinery and construction industries. At the state level we've added new OSHA safety positions. We've created a $500,000 fund to provide matching grants to companies for safety equipment and training. We created a program to reduce workers compensation premiums for those willing to participate in health and safety consultations.

In addition, Workforce Services has developed annual reporting for better analysis of on-the-job accidents.

In 2013, we had a better year. We saw improved statistics, fewer fatalities and hospitalizations. This was encouraging. We haven't got the numbers on 2014, but we have reason to believe at this point that 2013 is going to be a better year than 2014. We need to continue to look how we do better as a state to emphasize workplace safety and improve job safety.

I know, as you all do, employers care, we all do, about getting workers home safely at the end of the workday. We have been headed in the right direction, but there is more progress to be made, and we have to keep at it. We will. For example, one of my funding requests is for passing lanes, and that is safety related.

Finally, in this look back, I'm very proud we have passed a law for veterans. In 2011, we created the Wyoming Veterans Home -- excuse me, the Wyoming Veterans Welcome Home Day. Thanks to this law, at the end of March every year we hold ceremonies in communities around the state. This day is especially for vets, like our Korean vets, our Vietnam and Gulf War vets, who perhaps did not receive a proper homecoming after their military service ended.

And as I go to each one of these events at the end of March, it's a remarkable thing what you all have done on that Welcome Home Day. Because as you see these vets and you greet them, after you say a few words, it's -- it's astounding, because you have Vietnam vets, for example, who will greet you sometimes just with a nod or a handshake, sometimes with a hug, oftentimes with tears in their eyes, saying, "It's all I ever wanted, is to have somebody say 'welcome home' and 'thank you for your service.'"

Certainly that is the least we owe our vets. So I congratulate this body in that wonderful concept. It has been tremendous.

And today we have a vet with us who knows what it's like not to get what you should when you return home. Arturo Archuleta served as an Army infantryman in the Korean War. In 1951, Art was wounded in action and earned the purple heart. A few years ago it came to light the medal was never awarded.

Last November, 63 years after the fact, the situation was put right. Art received his purple heart at a ceremony in Cheyenne. It's never too late to put things right.

Veterans initiatives like the Welcome Home Day, special license plates, recognition for -- of service for professional licing -- licensing, and in-state tuition convey our respect and gratitude.

Art, we thank you and all our vets for serving and making sacrifices for our country. Art, please stand so we can recognize you.

To sum up, Wyoming has come far these past four years. Compared to unemployment at about 6 and a half percent in January 2011, we have unemployment at 4 and a half percent in November 2014, significantly lower than the U.S. unemployment rate.

Compared to ballooning costs of state operations the past decade, our state budget is staying relatively flat. We have improved state government, enhanced technology and infrastructure, given extra support to local government, developed an energy strategy, grown and diversified the economy, and tackled other tough issues. So today I'm pleased to report to all of you, with full confidence, the state of the state is strong and getting stronger.

This is because of the work you've done. For example, creating a great climate for business. This is because of Wyoming's natural advantages, including abundant mineral and energy resources. Above all, this is because of Wyoming people, our greatest strength.

We should not take our eye off the ball now or our foot off the gas. We have built a solid foundation for our future. We will move ahead by building on the solid foundation laid, not by standing still.

We have been sowing the seeds and harvesting the crops. If we continue to plant and steward well, we will leave greener pastures and even a better legacy.

We have the fiscal resources, the people resources, the natural resources, and the civic leadership to make the difference for generations to come. We look at the next four years with -- I look at the next four years with great optimism. In my second term, I will continue to focus on the areas I've talked about today. They've been important from day one. They remain important, and there's more we can do on each.

To add these initiatives -- to add to these initiatives, I would add coal initiatives, advancing our energy strategy, increasing international trade, forest health, Medicaid expansion and implementing our water strategy.

Again, I ask that we take on a great deal, but, again, I say Wyoming is always up to the challenge. Regarding coal. Coal is critical to Wyoming, and we must assure its future. Beyond that, coal is critical to this country's future. And in my lifetime, I've never seen an onslaught against a single industry, a single commodity, like the Obama administration's anti-coal agenda. The EPA has had a green light to go after the coal industry, and six years later coal is still targeted by federal regulators.

The coal industry provides about 40 percent of electricity for this country. It keeps us warm in the winter and cool in the summer. It keeps the lights on and the factories humming. It is, in fact, the fastest growing energy source in the world.

Here in Wyoming, the industry provides revenue for schools and infrastructure and thousands of direct and indirect jobs for Wyoming workers. In the coming years I will continue to work with bulldog determination on coal initiatives, port expansion, new technology and valueadded products. In the coming years we don't need to let up, we need to double down. We must assure coal's continuity. There are legitimate opportunities, such as the Integrated Test Center project, and we must seize them.

We fight for coal, and we will fight for oil, and we will fight for gas and trona and uranium and other resources if they are targeted by oppressive federal regulations.

And part of that is advancing energy strategy. Last -- last session you funded continued work on initiatives identified in the energy strategy. Our task is to go further to advance the strategy issued two years ago this May, by continuing the work on the initiatives and identifying new initiatives.

I mentioned international trade. Here's an interesting statistic. From 2010 to 2013, international trade grew from 983 million to 1.35 billion, a growth of 36 percent. We want to see that growth continue. And you have added 315,000 -- $350,000 in the biennial budget to develop international trade, funding I fully support. We are -- my office and you all can use this funding productively to continue the progress that we've made. Our forests, as you know, have been a challenge with beetle kill. And forests are a great resource. They provide homes for wildlife, lumber for industry, and places for recreation. We want our forests to be as healthy as possible, and so many have been devastated by beetle kill. I put together a task force to look at the condition of our forests and make recommendations. I support these recommendations and have included funding in my budget proposal.

Last session the legislature asked the Department of Health to find the best deal possible for Wyoming under the ACA. We have seen over the last four years much more flexibility from HHS and CMS. Our Department of Health was able to craft what we believe is the best plan for Wyoming. Some in the legislature are looking at an alternative plan, and I appreciate their work.

Regarding the ACA, you, as I, may not like it, but it is upon us. We challenged it, but it is upon us. Two years ago -- not last year, two years ago -- as I said in my state of the state, let us try within the law that is upon us to find the best deal, the best -- best fit for Wyoming under the ACA. I feel the say -- feel the same, say the same today. And here's some facts regarding ACA. Fact is, small and large hospitals are anchors in our Wyoming communities. Fact is, businesses make clear to me they cannot recruit new people to an area without reasonable healthcare. Beyond that, they can't keep people in an area without reasonable healthcare. And if small hospitals close, our rural towns will suffer tremendous loss and opportunity for the future.

Fact is, we have working men and women of Wyoming who cannot afford healthcare. This is true now as it was when both I and the legislature supported Healthy Frontiers in an attempt to address the issue.

The fact is, the Wyoming Hospital Association reports $200 million in uncompensated care. The number in terms of actual costs they believe is around a hundred million dollars.

Fact is, economic analysis shows that Medicaid expansion would create about 800 jobs in Wyoming.

The fact is, many of us don't like the ACA, including me. But here's another fact, our federal tax dollars pay for ACA. Wyoming federal tax dollars help pay for the ACA. Do we choose to have that support, that Wyoming money, return to Colorado, to California, or to Wyoming? I say Wyoming.

My plan or yours or something better, we have fought the fight against the ACA. We've done our best to find the fit for Wyoming. We are out of timeouts, and we need to address Medicaid expansion this session.

Water strategy. Wyoming is subject to seven water compacts and two Supreme Court decrees. Water we are not committed to providing others under this compact and decrees belongs to us. It is Wyoming's water. And Wyoming water is key to our future. All of us need water: municipalities, industries, ag, and individuals. It is our most important natural resource.

Water, more than anything, is tied to everything we do in the state. It's tied to everything we have done, and it's going to be tied to everything we do in the future. Yet Wyoming has not had a water strategy. Developing a water strategy was one of the initiatives identified in the energy strategy.

Over the last year or so, with wide public input, we have put together a very good strategy. It's going to be issued tomorrow and available online and in hard copy. The strategy includes a 10 in 10 proposal -- 10 small reservoir projects in 10 years -- and nine other initiatives, including a proposal for Fontenelle.

The time to protect our water is now. And as a state, we cannot afford to delay.

The supplemental budget gets us started on that.

I ask for a transfer of about 18.6 million for the Water Development Account II. I hope you'll approve this request and the rest of my budget proposal. I also hope you'll consider supporting the water strategy in future budgets as you have supported the energy strategy.

The budget in general. This is a general session, so I have before you a modest $156 million budget proposal. It is a conservative supplement to the biennial budget. I believe it positions well -- Wyoming well for the years ahead. It strengthens our UW and community college system. It makes investments in strategic areas. The fact is, the state has these funds. We are well over $1 million in reversions, money unused by agencies, which together with SIPA dollars fully funds my proposal. With your recognition of the reversions, all funding is available.

My proposal keeps government operating costs relatively flat. State agencies have worked hard to keep budgets trim. Only 17 million, less than one half of a percent of the standard general budget is increased by my biennial budget, and is for operating and ongoing expenditures.

Now, I do make some funding requests that do not add to the future budgets. They are one-time proposals.

These include $25 million for local government; 6.4 million for the municipal solid waste cease and transfer program; 21.2 million for passing lanes on Highway 59 between Douglas and Gillette and between Casper and Shoshoni; funding for the High Altitude Sports Performance Training Center, unconventional oil & gas reservoirs research, an entrepreneurship initiative, science initiative, literacy program and athletic competitiveness, all at UW, and subject to private matching funds.

Here's the deal. We have one four-year land grant university. In those areas important to Wyoming such as ag, science, engineering, we do not need to accept playing second fiddle to anyone. Private citizens are recognizing this. Private citizens of Wyoming have been giving many millions of dollars out of their own pockets to UW. And as with engineering, the science initiative has the ability to be transformational, making UW a leader, making Wyoming a leader. We want important academic programs at UW to be top tier.

And the same is true with athletics. I care about us competing. I care about us winning. It not only brings pride to our state -- for example, the UW basketball is in the top 25, as you may know. And this helps recruit students, increases alumni dollars, and builds the university.

The funding I'm asking for for UW will serve notice loud and clear brown and gold is not fading. It will be brighter. We will be leaders in business, education, science, athletics, and many other areas. Now, some of my funding requests may reoccur, but they would have to be asked for and approved again. For example, a new initiative I'm introducing today is called Wyoming Grown. Here is the situation. For decades Wyoming has had challenges keeping our kids in Wyoming after they graduate. Research shows that of all 18-year-olds working in Wyoming, on any given year, only an estimated 40 percent are still working in Wyoming 10 years later. We're losing 60 percent of our greatest talent.

Wyoming Grown will seek to recruit Wyoming computer programmers, doctors, welders, engineers and others, who have left the state but can continue to build their careers and raise their families here.

Workforce Services will use its network of employment specialists to connect job seekers with job opportunities. As part of the initiative, the tourism office is developing a Web page to highlight the wonderful qualities of our -- that our communities have to offer.

The initiative is not costly. I've asked for $10,000. But it is critical for continuing to strengthen our workforce. Businesses recruiting people -- businesses recruiting people to Wyoming know

that if a Wyoming kid will come back, it's a great fit, because they are coming home. Let's open the door to get our kids home.

Another initiative in my budget proposal is for job training and placement. We see what the private sector can do to help people become self-reliant.

We have with us today Ray Fleming Dinneen. She has a UW business degree, a doctorate in psychology from UNC. In 1986, Ray saw that single mothers needed help reaching independence. With her mother, Pat, she founded CLIMB Wyoming, a nonprofit organization which provides single mothers the resources needed to succeed on their own.

The program benefits mothers, children, communities and the state. It started in Cheyenne and branched out to other communities. Ray remains executive director.

More than 1600 mothers (with nearly 2600 children) have been served by CLIMB Wyoming.

My request for job training and placement is $1 million, and is subject to private matching funds. It's intended to allow innovative programs, like CLIMB Wyoming, to reach more people.

Ray, it's been remarkable all that you have done. Please stand so we can recognize your effort.

While the supplemental budget gets us started, there are other items in my budget that keep building Wyoming. These items are a list of forward-looking initiatives.

And here we have to recognize some hard facts.

With oil dropping, the revenue estimates will be going down. And it should be a concern for all of us. But the fact is, it's not something new to Wyoming. We've experienced this in the past. Some of you have experienced it in the past from the legislature. But we are in a better position now than we've been in the past.

We have positioned ourselves. And with less government, more efficient government, we will work through this. We will be able to continue to build Wyoming.

Fact is, in Wyoming we have never spent revenue we don't have in hand. We're not like D.C., and we never will be.

We recognize the drop in oil prices. For each $5 drop, the state loses about $35 million in revenue a year. But we know safely we have 220 to 240 million for the next fiscal year. This counts reversions and SIPA, which I already mentioned, and investment earnings as of December 10, 2014, which will be realized on June 30, 2015.

This does not come out of savings. It fully funds my supplemental budget, as I've said, and it leaves money left over for the list. I'll single out a few. As I said in my budget message, we need to fund the Gillette Madison and the Capitol Renovation projects. I don't view either of those projects as optional.

In addition, we need to look at industrial parks, like the Heartland project in Canada, which would allow companies to cluster, benefit from each other, develop technologies and produce innovative products from our natural resources. They are vital to our economy, especially to energy, manufacturing and tech businesses. They'll benefit from the synergies such parks will provide.

These parks need infrastructure to get off the ground. The startup cost for a reserve account would be small, a small down payment for big future gains.

This year marks the 10th anniversary of the Wildlife Trust. Fully funding the Wildlife Trust would be a one-time expense, or, rather, a transfer to a different savings account. Once fully funded, the Trust would carry itself and would not be in any future budget. Full funding would show that in Wyoming we do not just talk about balancing conservation and development, we actually do it.

With us today is the Bousman family. They have been ranching in Boulder, Wyoming for over a century. The ranch has several thousand acres of private land and also uses federal grazing allotments.

Brad Bousman was the first to sign a Candidate Conservation Agreement with Assurances for sage grouse, and the first to ask about a similar agreement called a CCA, Candidate Conservation Agreement, used for federal lands. We congratulate him for these firsts.

Brad and his family represent the commitment of private landowners to take voluntary actions. Brad, we thank you for your commitment to conservation, and please stand.

Like the conservation efforts of private landowners, the Wildlife Trust is a powerful force. It benefits ag, tourism, energy, wildlife and recreation. It preserves our rich heritage. We can secure the Trust in perpetuity by fully funding the corpus.

In addition to addressing items on the list, we must also address our state's fiscal policy. Wyoming has billions of dollars in various savings accounts. The rainy day fund alone, during my time in office, which is a liquid account, was almost doubled. It has $2 billion in it. And the permanent mineral trust fund has grown by 55 percent in my time in office. Last year, $1 billion flowed into liquid and permanent savings accounts.

The CREG estimates, as we now know, do not tell the whole story. And the CREG does not provide a fiscal policy. There are questions to be asked and there's questions to be answered. For example, how much should we have in savings? What is the purpose of the rainy day account? Can we count earned investment income for planning purposes? In answering these questions, we need to recognize the stock markets can go up and down, but infrastructure has inherent value. We need a sensible -- sensible fiscipal -- fiscal policy going forward so we can continue to save and also continue to invest in the future. We need transparency. We need predictability. We need clarity.

Only then, in good times and in lean, can we provide the best future for Wyoming. These discussions have already begun with leadership. They've got some great ideas. We must continue this conversation with the entire legislature.

As we go about our work, we continue in every way to be inspired by people around us, and I want to recognize a few of them today. Wyoming's 11,000 family farms and ranches give our state its special look and its special feel. Open spaces, beautiful views, historic buildings, growing crops, grazing livestock, we have these things and more thanks to Wyoming ag. The working hands on our ag lands make these operations tick and keep rodeo our state sport.

Russell "Pinky" Walter is from Lingle. He started in rodeo as a bull rider and served as a pickup man for bareback riders. Today he manages a ranch north of Fort Laramie. He still steer ropes. Pinky has spent his entire life on horseback.

The people he met on the rodeo circuit and while ranching got Walter thinking about a Wyoming Cowboy Hall of Fame. He and others interested in the idea carried it through. A Hall of Fame Board -- and Pinky is vice chairman -- established high standards. To qualify for induction, a person has to be more than 45 years old and have spent a majority of their life working on horseback on Wyoming ranches. The first induction ceremony was last fall.

Pinky, we recognize you, all Wyoming cowboys and cowgirls, and the initial inductees in the Wyoming Cowboy Hall of Fame. Pinky, you help keep Wyoming "Forever West." Thank you, Pinky.

Pinky, as an aside, I used to rodeo in high school, and there's no chance I'll ever be in that Cowboy Hall of Fame.

We think always about the importance of education in our state and what it means for kids and for our future. Walt Nolte -- Nolte represents our education system beyond K-12. He's been president of Casper College for the past 10 years. With leaders like Walt, our university and community college system is getting stronger and stronger.

UW and our seven great community colleges -- and they are great -- are on the same page. They want to provide the best post-high school education possible in our state, including what I believe is so important, career and technical education. They are focused on student success. It's a team effort, not compensation among entities.

Walt will retire in June, and he leaves behind some impressive achievements, for example, the largest enrollment in college history, a dozen new programs, and five new buildings.

Walt, I thank you. We all thank you for your work. You'll be missed. Please stand so we can recognize you today.

Our predecessors made decisions that put Wyoming in an enviable position, and it is our job to preserve and improve upon it. We are a leader in energy, the environment, and many other areas. We're happy to take on the responsibilities that go with leadership, now and in the future.

Since I took office, the constant in all my messages, besides Wyoming's strength, has been putting Wyoming first, believing in our people, local government, our small businesses to invest in our state and its future. My faith in Wyoming is as strong as ever.

We are small in number, but our citizens have kept the attributes that have made our state great. Independence, entrepreneurial spirit, optimism, humor and grit. We have these. Our folks have these, their kids, their grandkids. We must keep them in mind when we invest in the future of Wyoming. We have them in mind with all the decisions we make.

So as we go forward with courage, with respect, with civility, with motivation, not for ourselves, but for Wyoming, they make the future bright. May God grant us the wisdom. May God bless our state, our country, and all who live in our wonderful land. May God bless you. Thank you very much.

Text: Hickenlooper's State of the State speechJohn Hickenlooper delivers his 2015 State of the State address on Jan. 15, 2015.

StaffDenver Business Journal

Colorado Gov. John HickenlooperThursday delivered his fifth annual State of the State address —the first of his second term — at the Colorado Capitol.Here is the full text as prepared for delivery.

Good morning.I am grateful and honored to be in this Chamber again with so many distinguished Coloradans.I see a lot of familiar faces and some new ones.Some of you were in hard-fought campaigns. A few of you even endured a prolonged period of vote counting.I can only imagine what that must have been like.Speaking of hard fought campaigns, we thank the Broncos for another exciting season. And we congratulate Tommy Caldwell of Estes Park, who just reached the top of El Capitan.To all of you newly elected representatives, congratulations and welcome.I am confident that Colorado will benefit from your fresh ideas and enthusiasm.To all of you re-elected members, thank you for your continued service to our state.During the last four years, Colorado's General Assembly bucked the trend in Washington, as we avoided gridlock by walking the talk of bipartisanship.Collaboration has been the not-so secret sauce of our state's success.Congratulations to Senate President Bill Cadman and Majority Leader Mark Scheffel; and Minority Leader Morgan Carroll and Assistant Minority Leader Rollie Heath.Congratulations as well to Speaker Dickey Lee Hullinghorst, Majority Leader Crisanta Duran; House Minority Leader Brian DelGrosso and Assistant Minority Leader Libby Szabo.

With the support of her caucus, Representative Duran, makes history as the first Latina Majority Leader.I want to convey my gratitude to Lt. Gov. Joe Garcia, whose support and perspective has been invaluable to me and the state.Let us also express our solidarity with America's oldest ally, represented today by Jeffrey Richards, the Honorary Consul of France.We are grateful for the partnership we have with the tribes of Colorado and today we are honored to have with us Manuel (Man-U-el) Heart, the Chair of the Ute Mountain Ute Tribe.Only about a month ago, members of the Northern Cheyenne and the Northern Arapaho Tribes gathered on the West Steps of the Capitol to commemorate a sad chapter in our state's history: the 150th anniversary of the Sand Creek Massacre.With unanimous support from Colorado's four living governors, and on behalf of the good people of this state, I formally apologized for the atrocity that our government and its agents visited upon their ancestors.I am of the mind that we must acknowledge when things have gone wrong in the hope that we will get more things right.Healing begins with an apology, empathy and kindness.During our inaugural festivities we challenged Coloradans to engage in 10,000 random acts of kindnes which we can track with the simple hashtag "state of kind".As we move forward this session, I'm confident that spirit will continue here.I want to thank my cabinet and senior staff (seated to my right), along with all of our state employees, and special thanks to Major General Edwards and the Colorado National Guard, whose members, always stand ready to help Colorado in emergency.We have mourned the loss of several Colorado-based service men and women this past year, and we have them and their families in our hearts.We welcome newly elected Attorney General Cynthia Coffman and Secretary of StateWayne Williams, and re-elected Treasurer Walker Stapleton.That's Walker R. Stapleton.The esteemed members of our Colorado State Supreme Court are with us this morning. Our thanks to all of you.United States Congressmen Jared Polis and Ed Perlmutter are here. Can't say I blame them. I'd much rather be here than in Washington D.C. as well.We are also fortunate to have with us, former U.S. Senator and U.S. Secretary of the Interior Ken Salazar, who has been one of our greatest public servants, not just for Colorado but for our country, and Denver Mayor Michael Hancock, who is doing a phenomenal job.Just as many of you do, I took the main stairwell to the second floor this morning, and along the way walked by the murals of the first-floor rotunda.I have walked by those murals many times, and I confess that I don't always stop to appreciate them. But in the days that have led up to the start of this session, I have considered them quite a bit.The murals were completed in 1940 by Colorado painter Allen True, and the words written by Colorado poet Thomas Hornsby Ferril.According to an eyewitness account, True and Ferril solidified their partnership and came up with the theme for the murals during a long, raucous night, involving drinking…

And--I kid you not …knife throwing...And Ferril sketched out what became their theme on a greasy paper bag left after they'd polished off some cheeseburgers.The painter and the poet chose the perfect unifying theme for Colorado—water.The first panel is a poem by Ferril. It starts off, "Here is a land where life is written in water."An apt way to begin, as in the next eight panels True depicts the story of Colorado. Our past, present and future—and how it all flows from water.True begins where he should, depicting one of the first natives of Colorado, an American Indian at work.Throughout the next seven panels, we see a pioneer and his family pushing West into Colorado; speculators mining the gold rush; early farmers planting crops; a construction crew laying our urban foundation; industrial laborers toiling at a power facility.It is something of poetry itself that these murals encircle our rotunda, as the topic of water flows around many of the decisions we make in this building.Seventy to eighty percent of Colorado's water falls on the mostly agricultural communities west of the Continental Divide; while 90 percent of our population is on the east, in the more urban Front Range.Colorado is a semi-arid state. Even when our snow pack is substantial and the state has what looks like a water surplus, a drought always looms. Water in Colorado is always in finite supply.The long boiling disagreements over water have been well-documented.Historically, folks West of the Divide took the position that not one more drop of water would be diverted to the Front Range. And East of the Divide would respond with: We'll see you in court.But just last month, after the largest civic engagement process in state history, the Colorado Water Conservation Board, at long last, achieved what many believed was impossible:It brought together the disparate stakeholders from around the state and drafted Colorado's first-ever statewide Water Plan.Representatives of urban areas recognized that locally sourced dairy and food is vital to allof Colorado; while the agricultural areas realized that they could not simply allow urbans areas to dry up.The Colorado Water Plan represents a paradigm shift of cooperation and collaboration, and goes a long way to ensure we strategically allocate this precious resource to maximize our entire state's ability to grow and flourish.I draw our attention to those murals, and the Water Plan, because in them, it seems, there are valuable lessons.Lessons—not only about how we manage our water—but also how we can best manage all of our resources.We are in a unique time, when the decisions we make now will have an especially profound impact on whether our state grows stronger, or stagnates.Members of the General Assembly, today, I am pleased to say that—despite the considerable challenges Colorado has faced—the state of our state is strong.According to almost every national ranking, Colorado is now one of the top states for business climate and job growth.

Colorado's economic success is the result of the risk-taking and investment of Colorado's private sector, the creativity of our innovators, and the hard work of the people throughout this state.Our economic blueprint has been rooted in doing everything possible to promote collaboration with business on the state, county and local levels.River Rim Teardrops is one example. Dolores County residents Tim and Peg Rossiter are avid campers. A few years ago, to pursue their passion, they bought a cargo trailer and turned it into a camper shaped like a teardrop, and they discovered a business.With some marketing guidance and help from the Southwest Colorado Small Business Development Center, Tim and Peg launched River Rim Teardrops.Their company motto is: "We build them the old way because the old ones are still around." That's the sort of sound, sturdy motto that rings true to Coloradans.As the murals True and Ferril created remind us, our state was founded by pioneers who packed wagons and dared to head into unmapped territory; and with their trailers, Tim and Peg remind us that the entrepreneurial spirit is alive and vital to the DNA of Colorado.Tim and Peg are here with us today. Please join me in asking them to stand, and congratulate them.In addition to building products the old fashioned way, Colorado benefits mightily from our high-tech innovators. According to one recent count, five of the top metropolitan areas in the country for tech start-ups are located in Colorado.It's not surprising, considering Colorado has long been among the top states in the nation when it comes to Aerospace and Advanced Manufacturing. Colorado's aerospace industry employs over 25,000 employees. Good jobs with good wages.Just last month, NASA took a giant step forward for mankind when it launched the Orion spacecraft toward Mars on its first voyage and it travelled farther into space than any spacecraft designed for astronauts in 40 years.While Orion took flight from Cape Canaveral, much of the engineering took flight right here in Colorado with Lockheed Martin and United Launch Alliance.To galvanize innovators and attract more technology-based start-ups to Colorado, we started the Colorado Innovation Network and launched the annual COIN summit, now entering its fourth year.Two years ago, Chris Klein and Franz (Gar-sum-key) Garsombke, the founders of a company called, Rachio (Rah-cheeo), won the $50,000 award for the most innovative start-up idea.Chris and Franz invented a smart-sprinkler, the Iro (Ear-o), which automatically adjusts for changes in weather.While presenting at the COIN Summit, Chris and Franz did just the sort of thing we had hoped for: they networked and met Noel Ginsburg, the CEO of Colorado's Intertech Plastics. Noel worked with Rachio to help bring the Iro to production.Rachio's smart sprinklers are now in 1000 Home Depots and launching into Best Buys and Apple Stores.Please join me in asking Chris, Franz and Noel to stand so that we can congratulate them on sprinkling our semi-arid state with their success.Our economic development strategy is to recruit, retain, and grow talent better than any state in the country, and to vigilantly seize opportunities to help Colorado businesses hatch and grow.During the last few years, we have successfully lured major companies like Cool Planet Energy Systems, Hitachi, Ardent Mills and Arrow Electronics.

Just last month, we persuaded Panasonic to locate a major hub in this state with a gain of 300 jobs.We've successfully kept our companies here at home and helped them grow — companies like Charles Schwab, Lockheed Martin and Woodward, all of which added thousands more jobs.Your support for our Rural Economic Development Grants program, our Main Street improvement initiative, and the promise of broadband expansion from last sessions' telecommunications reform law …… are all important steps to ensure that Colorado's economic recovery reaches all four corners of our state.We will not only continue those programs -- we will do more.We've spent four years implementing the Colorado Blueprint, the state's bottom-up strategy to economic recovery, focused on key industries and regional development.In the coming months, our Office of Economic Development and International Trade will be launching Colorado Blueprint 2.0.The team will again be visiting all 14 regions of the state soliciting a vision for economic development starting with the counties where employment is most lagging. Counties like Otero, Costilla, San Miguel, and Huerfano.The office will also launch a pilot program designed to attract the creative class of "free agents", independent contractors, to live and work in identified communities.Data suggests that this creative class of free agents comprises up to 30 percent of the U.S workforce and include a wide spectrum of occupations including science, engineering, education, computer programming, and arts and media.Through non-profit partnerships, the program would provide subsidized space, with high speed internet and access to health-care coverage. Bundling these services and providing a co-working environment will aid in the recruitment of this talent pool and foster economic growth.This innovative idea came to us from Colorado College President Dick Celeste, and Colorado Springs Mayor Steve Bach, and Mayor Bach is here with us today. This further demonstrates that no one party has all the good ideas.Our challenge is to make sure economic prosperity reaches every household in all 64 counties.Despite our statewide economic resurgence, many out-of-work Coloradans are fighting to earn their way into the middle-class.Almost 50,000 of our fellow Coloradans have been out of work for six-months or more.Having been among the long-term unemployed myself, I know that many of our long-term unemployed are eager to have a chance re-define themselves and to succeed.We have launched an initiative that pulls together state resources from several departments, with the single-minded objective to assist long-term unemployed workers find work.People like Wendy Stedman.Last year, Wendy walked into a Colorado Workforce Center in Centennial and enrolled in the Dislocated Worker Program. A veteran who served this country honorably, she had lost her job working in I.T. and communications systems.Wendy's workforce specialist provided her with resume and interview skills coaching. Together, they determined she would be more marketable with some specialized training.Wendy was approved to attend Microsoft Project certification classes, and her previous employer re-hired her as a Technical Project Manager.

Please join me in asking Wendy to stand so that we can congratulate her on her new job and thank her for strengthening Colorado's economy.The investments we make in our workforce development programs benefit not only the long-term unemployed but also employers and the entire state.Targeted workforce development and a strong education system are keys to supporting a strong middle class.Our current budget request for K-12 education includes a $480 million increase, of which the state is contributing 70 percent.In recent years, we worked together to save extra money in the State Education Fund.Moving forward, our budget proposal, includes an additional $200 million from the State Education Fund intended as a one-time increase for school districts to allocate as their elected boards decide.With or without this proposal, as we look beyond this year, the ability of the State General Fund to protect the negative factor from rising even higher is uncertain.Beyond questions of funding, we need to confront the truth about whether Colorado's kids are getting the education they need to compete and succeed in the job market.But how do we know if we are getting the job done unless we accurately measure individual student growth?We look forward to the final recommendations of the 1202 Task Force. But already the outlines of a consensus are taking shape.Easing the testing demands on 12th graders in social studies and science; and streamlining tests in early years and finding flexibility with approaches to social studies might be among the right answers.There is no doubt, however, that maintaining consistent assessments in English and math through high school is fundamental.We look forward to working with all of you as we tackle this challenging issue.Colorado must also become the best state in the country to recruit, retain and grow great teachers. Licensure reforms, career ladders and a fair evaluation system are critical.These efforts should not be designed to punish teachers, but rather, to reward and inspire the good ones to become even better.Our goal should be to ensure that every Colorado child has equal access to a great education. That means taking a hard look at funding equity, strategies to turn around struggling schools, promoting innovation and supporting charter schools.An education after high school was once a sure path into the middle class, but today, the price tag remains a stumbling block for too many of our fellow Coloradans.Chief among our priorities is reducing the cost of higher education for students and their families. Our Colorado Commission on Higher Education has set a goal that 66% of 25-34 year olds hold a post-high school credential by 2025.But that's a long way away, and we should target 55 percent by 2020.In our proposed budget, we have asked for $107 million additional in General Fund resources for the higher education.One of the returns on this investment is a cap in the undergraduate tuition growth at no more than 6.0 percent, making college and thereby a pathway to a well-paying job and the middle class more accessible to more Coloradans.

A portion of this request would also provide stabilization funds as the system moves to a new formula.It is a fast changing world, and we must have a system of higher education that is built to keep pace.We are doing what we can as a state to educate and graduate a homegrown workforce. But, we know that its not enough, and our ability to continue funding higher ed at this level may not last much longer.We must continue to identify and develop creative solutions.The goal of our new Colorado Opportunity Scholarship Initiative is to launch a network of state-matched scholarship funds across the state.We have already allocated $34 million to the project, and I hope the General Assembly will join me by allocating another $30 million.The Colorado Quarterly Forum has already promised $1 million over the next ten years -- the first of what will be many contributions to this partnership with philanthropic and business partners.One of the more fertile fields of employment in Colorado, has been our energy industry.Colorado has pursued an "all of the above" energy strategy, helping our country approach energy independence.Throughout my first term, we worked hard on the difficult conflicts that arise when the rightful expectation for a peaceful lifestyle in our homes and neighborhoods runs up against our need for energy, and the property rights that allow mineral owners to develop that energy.We crafted rules to increase setbacks, reduce noise, light and dust impacts, protect groundwater, slash emissions and disclose industry chemicals. We increased penalties for rulebreakers, toughened spill reporting, added oversight staff, and strengthened local collaboration.And we're going to keep working at cultivating a robust energy industry and a healthy environment.As part of a compromise to keep economically-devastating initiatives off the ballot, we have worked with the Keystone Center and brought long-polarized interests to the same table.After four meetings of this task force, people have stepped from their entrenched positions, come together, broken bread –or at least boxed lunches–and are talking to one another. As a matter of fact, they are meeting right now.I look forward to the recommendations of this task force, and pledge to work with you and other stakeholders in developing our energy resources, protecting property rights and our natural environment and public health.We remain committed to being the #1 healthiest state in nation.Our plan to get there is the "State of Health," developed collaboratively by multiple Departments, with broad input from the healthcare community.Already, the rate of prescription drug abuse, a chronic issue in Colorado, has come down by more than 15 percent.We are resetting the Medicaid cost curve in this state through efforts like our Accountable Care Collaborative. Medicaid cost per capita is flat, and trending down.We are one of the top five most successful states in reducing our number of uninsured citizens.But we need to do more.For decades, Colorado has had one of the highest teen suicide rates in the country.We recently launched the first ever statewide mental health crisis system, including a statewide hotline, mobile crisis workers, stabilization centers and respite services to help address this issue.

We welcome a discussion in this chamber to sustain our momentum on preventative mental health treatment. We need to give schools the resources to identify and support kids at risk for serious mental health issues, before they lead to suicide or violence.We don't want to lose one more life to this kind of tragedy.When it comes to supporting healthy communities we have been thankful for the partnership with the General Assembly as we have addressed serious societal challenges.In this next session, we continue our attention on child welfare. A recent audit recommended new funding to address workload issues for case workers.We have requested $6.6 million General Fund for 130 new caseworkers. This is the first step our Department of Human Services plans to take to right size our caseworker capacity to meet the needs of vulnerable children.Our budget includes a $4 million General Fund increase in State funding for Senior Services along with $2 million to provide a 1.7 percent cost of living adjustment to Old Age Pension recipients.In the last two years, we requested and received funding to eliminate the existing waitlists for Supported Living Services.This year, we are requesting funding to eliminate the wait list for children with Autism.Colorado cannot become the healthiest state for people if it is not the healthiest state for our natural environment. Part of educating our kids also means getting them outside for their physical and emotional health.Mike King, the executive director of the Colorado Department of Natural Resources, will build on the progress we have already begun with Great Outdoors Colorado, and will engage our federal and local open space partners to craft a statewide recreational trail system.From Rocky Mountain Arsenal Wildlife Refuge to the South Platte River, from Rocky Flats to Rocky Mountain National Park, is one example of the type of world-class trail system we can create.We want to make sure we get more Colorado cyclists out there.We have asked Ken Gart, our volunteer bike czar, to assist us in launching a Bike Health initiative that will take on a number of large challenges, such as create a publicly available data source to track existing bicycle trails, routes and cyclist feedback; seek funding for new construction for bicycle infrastructure; and create a plan to connect bike routes across communities and around the tallest mountains in Colorado.Ken is here with us today and we want to thank him for agreeing to serve in this position and let him know he has our full support.We ask for your participation and support in identifying a new generation of recreational crown jewels, expanding opportunities for people to hunt, fish, hike and explore the extraordinary natural beauty that only Colorado can offer.We need to challenge partners like Great Outdoors Colorado, Nature Conservancy and Trust for Public Lands, our federal partners and many others, to help us assemble the most critical open spaces before it is too late.Katharine Lee Bates was inspired to write "America the Beautiful" atop Pikes Peak. And so, it seems fitting to call this initiative, "Colorado the Beautiful."Managing our diverse landscape and natural resources is a top priority in our state. In Colorado, we know how to protect and preserve threatened or endangered species while at the same time protecting grazing and multi-use rights.

Conservation plans are very state specific with much stakeholder collaboration needed to strike the right balance. We will continue to strengthen our partnerships with local governments, and state and federal agencies, along with other stakeholders to find the best solutions for Colorado.We know that visitors already flock to Colorado to enjoy all that this magnificent state offers.However, we are missing opportunities to market Colorado and leaving dollars on the table.In our current budget proposal we are asking for funds to hire a Chief Marketing Officer to strategically promote Colorado and to help us achieve the biggest marketing bang for the buck.Not all of the PR lately about Colorado has been about our sunshine.Our new marijuana industry must continue to confront both public health and public safety concerns.At this time last year, we faced the question of whether it was possible to have a legitimate recreational marijuana industry.To date, evidence shows that our regulatory system is beginning to work.We have worked from scratch, with health officials, industry, law enforcement, concerned parents and regulators, and the General Assembly, to develop robust regulations that allow the industry to develop and prosper in a safe and legitimate way.Both the Brookings and the Cato Institutes have commended our work.But we know challenges remain.One of the ongoing public safety concerns is that the marijuana industry operates largely in cash, without traditional forms of banking. Cash only businesses invite corruption, just look at the history of Prohibition.We will continue to push the federal government to allow banking for this industry.Another public safety issue we are committed to addressing is drunk driving.While we must continue to focus our efforts on anti-drunk driving measures like intervention, rehabilitation, and active enforcement -- adequate punishment is also needed.Colorado is one of only four states that does not have a felony DUI law.We will work with you on a felony DUI law that brings justice to drivers who repeatedly drink and drive.Another way to make our State safer is to address infrastructure.Within the next twenty years Colorado is projected to see our 5.1 million population increase by another 3 million people.While the Colorado Department of Transportation reconnected the flood-damaged roads and bridges in record time, CDOT also widened the lanes of the Veterans Tunnel Project on-time and under budget—the first I-70 mountain expansion in the 50 years since it was built.That expansion should just be the beginning.We are committed to finding solutions that add capacity on I-25 and I-70.We need to think creatively about how we fund both I-25 and I-70. We cannot wait for the federal government to solve the transportation funding problems in Colorado.We must take action whether it be new funding sources or funding partnerships.It is up to us to build our roads to the future.The last panel of the water-themed murals Allen True and Thomas Ferril created depicts a small group of people gazing into a horizon where a future—filled with innovation and possibilities—is under construction.That future begins today.

Our collective plans for next year are important. We will make solid and meaningful decisions on education, healthcare, public safety, and transportation.But we are facing the mathematical and inevitable conclusion of a system of tax and spending rules that evolved over decades.One change we can make to encourage fiscal responsibility, and to help us direct our resources to where they are most needed most, is to empower voters to make more informed decisions of the fiscal implications of proposed ballot measures.We believe that the General Assembly should pass legislation that would provide Coloradans with a fiscal impact statement on the effect of proposed amendments to the State Constitution in order to make the most thoughtful decisions. We will all benefit from that.And then there's the heart of the fiscal thicket that I mentioned in my Inaugural Address.Under TABOR, rebates are required even as we see legitimate needs all over the state going unmet.Amendment 23 demands more new money than we can possibly expect to have two years from now.If we do nothing, if we pretend the future will take care of itself, and we're back here in two years facing what was clearly an avoidable crisis, history will show that we failed future generations of Coloradans.There is a legitimate debate of whether government should be a bit bigger or a bit smaller. But that misses the point. Regardless of size, government must work.Some people want to get rid of TABOR, some want to get rid of Amendment 23, others want to get rid of Gallagher. There is no shortage of thorns in this fiscal thicket.And while we will continue to strategically prune, our state budget can only endure so much cutting.Just as stakeholders across this state succeeded in a drafting a strategy for a state water plan, we should be coming together, dealing with the facts of what we know, and take a hard look at what is the most strategic way to allocate our resources; and ask ourselves: What will be of maximum benefit for all Coloradans?That last mural of Allen True's panels, with the group of people looking toward a horizon with a future taking shape, has some wonderful words from the poet, Ferril, that we would be well served to keep in mind:"Beyond the sundown is tomorrow's wisdom; today is going to be long, long ago."Now is when we must come together to address these issues. We don't need to throw knives, just the political courage to face the facts, and do some real math.We can paint our own panel for the mural, one that will benefit generations of Coloradans to come.Thank you very much, and God bless the state of Colorado.

2015 State of the StateAs prepared for delivery by Gov. Brian Sandoval

Mr. President, Mr. Speaker, Distinguished Members of the Legislature, Honorable Justices of the Supreme Court, Constitutional Officers: 

My Fellow Nevadans: I’m incredibly grateful and honored that I have the solemn privilege of serving as your governor. Tonight I wish to speak with you, not just about the state of our state, but about a plan to modernize and transform Nevada for its next 50 years of success. Let me take a moment to recognize Nevada’s First Lady, Kathleen Sandoval, as well as my daughters, Maddy and Marisa, my parents, Ron and Teri Sandoval, and my sister, Lauri. Tonight we welcome 20 freshmen legislators. Twenty years ago, I was a freshmen legislator, so I know exactly how you are feeling. Will all the new legislators please stand so we can acknowledge your commitment to public service? Sadly, since we last met, a great many former legislators have departed. We lost a Nevada giant in Speaker Joe Dini. A total of 19 legislators will long be remembered for their service. Please join me for a moment of silence in their honor. Thank you. One month ago today, at the final event of the Nevada Sesquicentennial, I helped seal a time capsule that is now buried at the Capitol. The contents capture a snapshot of the Nevada family today, to be presented to a 200-year-old Nevada in 2064. I wrote a letter to Nevada’s bicentennial governor for the time capsule. 

As I wrote, I realized that the success or failure of the governor and people of Nevada in 2064 will largely depend upon our decisions today. Ladies and gentlemen, we stand at a unique moment in time. Having just completed our Sesquicentennial, we have proudly celebrated our state’s history. Tonight we begin writing the next chapter of that story. We must decide if that chapter is about getting through the next two years, or about creating a New Nevada – for the generations to come. The most recent chapter of our story required strength and perseverance as we weathered one of the worst economic storms in our history. These times were even more challenging because they coincided with two long and difficult wars. Even though some said it couldn’t be done, we managed to lay the foundation for a New Nevada: Nevada became one of only six national training sites for unmanned aerial systems. We attracted Tesla in one of the most competitive site selections in our nation’s history. We became the home to dozens of other national brands who now employ Nevadans in industries of the future – cyber security, medicine, aviation, renewable energy,

manufacturing, data storage and more. During my first State of the State Message in 2011, Nevada led the nation in unemployment. We set a goal then of 50,000 new jobs – we have almost doubled that. Today, Nevada’s job growth is third strongest in the country, we have cut our unemployment rate in half, and we have the second fastest growing population in the nation. We are adding good jobs in almost every sector, with business services, manufacturing, health services, gaming and tourism leading the way. And yet, the success of our state is inextricably linked to the well-being of our most vulnerable citizens. And I believe we have made significant progress in that regard. 

Two years ago, 23 percent of Nevadans lacked health insurance, the second worst ranking in the nation. Today, that number has been reduced by more than half, to 11 percent, and we are the fourth most improved state in the country. The uninsured rate for our children has dropped from 15 percent to 2 percent. Nearly three-fourths of our Medicaid and Nevada Check-Up populations are covered by care management, which saves the state $13 million, and ensures that nevadans receive timely, cost-effective and appropriate health care. In 2013, our behavioral health system was in a crisis. Individuals waited days to access inpatient psychiatric treatment, and emergency rooms were overflowing. Through the work of the Department of Health and Human Services, the specially-created Behavioral Health and Wellness Council, and many others, there have been dramatic improvements. Tonight, I thank them. We also focused on education. We expanded full-day kindergarten. We created new programs for English language learners. We increased funding for special education, supported school choice through the creation of a Charter School Authority, and dedicated ourselves to college and career ready standards and assessments. Our colleges and universities modernized their funding formula, rewarding performance and success. We accomplished much in the worst economic crisis since the Great Depression. Because of our collective effort, I believe we now stand at the threshold of a New Nevada – 

A Nevada prepared to take its place among the most innovative, visionary and well-

educated states in the nation. Although we can never lose our focus on job creation and the economy, we must now turn our attention to Nevada’s generations to come, the youth of our state. I featured them at my Inaugural for a reason; They are incredibly talented, hard-working and determined, and it is they who will live with the decisions we make during this legislative session. I know this view is shared by all here assembled. I am relying on the four leaders of this institution – Senator Roberson, Speaker Hambrick, Senator Ford, and Assemblywoman Kirkpatrick to work with me on what must be done. We have already started, and I thank them for their leadership. It’s no mystery. Nevada’s new companies will need a highly skilled workforce. Our historic industries do as well. Improving our public education system must therefore begin with modernization, and modernization requires investment. But our investment cannot be buying more of the same. We have to own the fact that our K-12 system doesn’t need to improve, it must improve. Today’s public education system was largely established in the 1950’s, when public leaders responded to challenges similar to what we confront today. Rapid enrollment growth spurred voters to implement the first State Sales Tax in 1955. Governor Russell and the Legislature went even further, consolidating over 150 local school districts into the current 17, based on county lines. 

This made sense in 1955. Nevada’s entire population at that time was just 237,000 people – roughly two-thirds the number of students in Clark county. In 1967, educational needs again required leadership, and the Legislature enacted the Nevada Plan for School Finance. This plan sought to stabilize state funding to local districts. In that year, Nevada’s entire population was roughly 450,000 – less than today’s total enrollment in all public schools. Not only was the Silver State less populated 50 years ago, Nevadans were financially better off.From the end of World War II until the late 1960’s, Nevada’s per capita income was among the highest in the West. In contrast, today, almost one out of four children in Nevada lives in poverty. Our population is also much more diverse. Nevada is a different place. America is a different place. The world is a different place. Yet we rely on the same public education governance and financing models established

50 years ago. I submit to you this evening that an education system for this century requires bold new ideas to meet the reality of our time. I am asking the Legislature to join me in beginning the work of comprehensive modernization of our education system to meet the needs of today’s students and the New Nevada. This work begins with our youngest learners. Nevada has the lowest preschool attendance of any state in the nation. Thanks to a recent federal grant, and matching funds provided in my budget, we will improve this worst-in-the-country statistic. 

My budget also finishes what we started two years ago, the expansion of all Day Kindergarten to every elementary school in Nevada. These two efforts provide a foundation for the future success of all our children. We must also improve our students’ reading skills. Studies show that a child’s chances of graduating from high school are cut in half if they are not reading at grade level by third grade. I will therefore work with Senator Becky Harris and the Senate Committee on Education to introduce a “Read by Three” bill to help ensure every student is reading by third grade. My budget includes nearly $30 million to support this literacy effort. My budget also begins modernizing our classrooms through instructional technology. Today, we invest less than $4 million over the biennium in school technology. My budget will launch the Nevada Ready 21 Plan. This plan will put digital devices in the hands of middle school students throughout Nevada and ensure teachers have the necessary training for this new environment. Nearly $50 Million Will Be Invested. As we expand technology, we must take steps to protect privacy. I encourage this Legislature to work with the various stakeholders to enact legislation protecting student data. Our most troubling education statistic is Nevada’s worst-in-the-nation high school graduation rate. We have to do better. My budget includes a new grants program designed to ensure students are college and career ready by graduation – as well as a significant expansion of Career and Technical Education, Jobs for America’s Graduates and STEM education. In total, this effort will make over $20 million available to our high schools. We must remember that the New Nevada will be different in other ways from 50 years ago. 

Our students are different, and their needs are different. The 40-year-old Nevada Plan for School Finance must be modernized to consider the needs of individual students. A better alternative uses “weighted formulas” where students with differing needs would receive additional dollars based on a percentage of the base amount. In the second year of the coming biennium, my budget will establish the first of these funding categories in Special Education and then work toward a final weighted formula. Other categories will follow in subsequent years. Last session we introduced for the first time additional resources for Nevada’s English language learners. We created the Zoom Schools, and early indicators point to the kind of success we expected. My budget doubles our original investment for a total of $100 million this biennium. But English language learners are not the only school population with differing needs. My budget includes $50 million for students in the most impoverished parts of our state. Their schools require a solution to win the struggles their students have every day. I propose calling them “Victory Schools,” signifying our commitment to help these students overcome adversity. We have also historically neglected our gifted and talented learners, allocating less than $200,000 per year for these students. My recommended budget provides $10 million to establish a true Gifted and Talented Learner allocation. These initiatives represent a down payment on total modernization of the Nevada Plan. Legislation this Session will also adjust when we count student enrollment, increase transparency in the funding model, ensure money reaches the classroom, and modernize equity allocation. 

A hard reality of today’s Nevada schools is that they are simply overcrowded and need maintenance. Imagine sitting in a high school class in Las Vegas with over forty students and no air conditioning. The need is real. Therefore, I will support legislation to approve a temporary rollover of bonding authority for the construction and maintenance of local schools, with state oversight. While many must recognize the hard truth that our education system will not improve without more funding, others must accept the reality that improvements will not be made without accountability measures, collective bargaining reform, and school choice. Our new investment must come with performance measures and accountability. We will only pay for programs that make a difference in the lives of students. I will again support Opportunity Scholarships, giving tax credits to businesses that provide tuition-based scholarships for at-risk students to attend private schools. 

Through the leadership of Assemblywoman Woodbury, the Assembly Committee on Education will introduce this legislation. I will sign it when it reaches my desk. I support legislation that increases the quality of public charter schools. My budget provides $20 million in matching funding to encourage successful, proven charter school organizations to open more charter schools in Nevada. Based on recent events, I have concluded that local school boards should be appointed, not elected. Although well intended, some of these boards have become disconnected from their communities. I will therefore support legislation to provide for the appointment of members of local school boards. We must also recognize that Nevada’s school districts may be too large or too small. Today, they range in size from 74 students in Esmeralda County to over 318,000 students in Clark county. 

I will introduce legislation that allows local governments to create smaller school districts in our urban counties, and consolidate school districts in our rural counties. I will also support legislation to enact true collective bargaining REFORM in our school system. In 2011, I asked the Legislature for a more balanced approach to contract negotiations. Most bills never had a hearing. I again stand ready to work with you to ensure that employee compensation is fair, but also recognizes the need for reform. We cannot expect that governance and financing models alone will address the underlying issues that prevent many students from learning. Achieving meaningful public school reform also means addressing the environment in which our children learn. Our First Lady has long been a champion for our youth. And in recent months, she has focused her abundant energies on hunger in our schools. Responding to recommendations from the Food Security Task Force, my budget includes $2 million to expand breakfast in the classroom – and legislation will be introduced to leverage federal spending in this area. The onset of the internet, texting, twitter, Snapchat, Facebook and other technologies has introduced new stressors in the lives of our youth, without necessary coping skills. Many have nowhere to turn, resulting in lower grades, school absence, and in the worst cases, violence and tragedy. The price paid by some is staggering. With us tonight from Las Vegas are Mary Bryan, Aimee Hairr, and Jason Lamberth, whose children were the victims of school bullying. 

Unfortunately, these parents are not alone. 

Over 4,000 incidents of bullying and cyberbullying were reported in Nevada during the last school year. I will work with Senator Parks and Assemblywoman Spiegel, champions of school safety and anti-bullying efforts, to propose legislation this session to reform Nevada’s anti-bullying laws. In addition, a new Office for Safe and Respectful Learning will administer $36 million in grants for social workers in our schools, as recommended by the Behavioral Health and Wellness Council. Teachers and principals who lead our schools also deserve our support through investment and accountability. We must empower them. That is why I am introducing legislation to strengthen the current pay for performance laws. We will require districts to set aside money TO REWARD the very best teachers and principals, and to attract them to teach at underperforming schools. I have also substantially increased the state’s commitment to professional development through a Great Teaching and Leading Fund. These funds will be used to improve the teaching profession, attract new teachers, and train the kind of school leaders we need. Finally, we must acknowledge that far too many of our schools are persistently failing. Tomorrow our Department of Education will release a list of underperforming schools. The list includes 10 percent of the schools in our state. Many have been failing for more than a decade. We must draw a line in the sand and say “no more.” I am therefore requesting the creation of an “Achievement School District”. This unique school district will manage failing schools without regard to location. I have asked former Washoe County Superintendent Pedro Martinez to help with this initiative as a Superintendent in Residence with the Nevada Department of Education. 

Pedro is here tonight, and I thank him for his leadership on this critical issue. This is my plan to improve education. We will make investments from early learning through high school graduation. We will support enhancements in technology, students at risk, gifted students, teachers and principals, school choice, and construction. We will tie those investments to performance, with targeted grants wherever possible. There will be no blank check. We will revise collective bargaining laws. We will also modernize and transform the system. And we will ensure that our students are ready for success in college and careers. 

Today, only one out of three Nevadans have the benefit of education or training after high school. Yet we know the jobs of the future will require two-thirds of us to have post high-school credentials. The New Nevada will need more scientists, machinists, engineers, computer programmers, welders and other STEM workers to grow our new industries. Our colleges and universities are the key. Last session we took steps to introduce performance funding to the Nevada System of Higher Education. The institutions responded, and tonight, I am pleased to announce additional investments in our colleges and universities. My budget includes new operating funds in the amount of $76 million for higher education, plus $24 million in bond funding for capital construction. The Nevada System of Higher Education sees a growth of over 8 percent in State support over the next budget cycle. A UNLV hotel school is funded with $24 million. 

There is absolutely no reason why the best hotel school in the nation should be anywhere but Las Vegas. Las Vegas also needs a medical school. It is the largest metropolitan area in the nation without one. The Board of Regents has recognized this need and I am pleased to provide the first $9.3 million for the initial costs of establishing the new UNLV medical school. Although we will establish a medical school at UNLV, Nevada needs more doctors now. My budget includes $10 million in new funding for graduate medical education to attract and retain the best new doctors in America to train and stay in Nevada. All in – from preschool through graduate school – The proposals I have outlined tonight will invest $882 million in education in our state over the next two years. Ladies and gentlemen, I do not make these proposals lightly. I know they represent a change in the way we approach education. But I also know that our system has to improve and that every child deserves the opportunity to succeed. This investment in our children and transformation of our education system is absolutely necessary, and so, tonight, I ask for your help in creating the funding base to pay for it. For four years, we have held the line on spending. Temporary revenue measures, cuts, and efficiencies were necessary – we sought to get Nevada working again, and we did it. Businesses were able to get back on their feet and plan for the future. We also cut red tape and improved State Government. 

Yet caseload growth, school enrollment, and infrastructure needs place new pressures on State spending every single day. In the current fiscal year, despite an improving economy and record job growth, we would be unable to pay our bills without significant adjustments to the approved spending plan. This year alone we ARE $150 million below forecasts – in a time of economic recovery. Our current revenue structures do not keep up with growth. The Economic Forum set available General Fund revenues for the next biennium at approximately $6.3 billion. Our current biennial budget is $6.6 billion. For the coming budget cycle, the Forum projects General Fund revenues will only be slightly more than the 2005-2007 budget – ten years ago! By contrast, in the same decade, Nevada’s population increased by SOME 335,000 people, K-12 enrollment increased by OVER 55,000 students, and the number of Nevadans in many social service programs more than doubled. The budget I am proposing includes $7.3 billion in General Fund spending – significantly less than agency requests. But it begins the strategic investment in the education that we require. I believe this is necessary, even critical, for our future. We must also consider Sensible reform to the Public Employee Retirement System and the way we pay state employees. My budget will no longer require state employees to take furloughs. 

State employees have made great sacrifices, and i thank them for their service to the people of Nevada. Tonight I am asking this legislature to work with me to ensure that Nevada moves forward. To close the gap between proposed revenue and projected spending, I am offering a two-part solution. Like so many of these new proposals, it provides an opportunity for modernization. First, the so-called “sunset taxes” must be continued to cover basic expenditures. They provide revenue not only for the General Fund but also the Distributive School Account. It’s time we are honest with ourselves —these revenues are now a part of our comprehensive budget. Second, we must identify new sources of revenue. $132 million can be found through changes to existing state law, and this will help address some structural issues. But we must fully fund the education initiatives I have outlined. I am therefore proposing a broad-based solution that asks Nevada business to invest in our education system. 

By modifying the existing Business License Fee to a graduated scale, we will generate over $430 million in the next two years – funding equal to the investment in Pre-K through twelfth grade that I am proposing in this budget. I realize these decisions are difficult. I know I am asking a lot from the business community. But I have explored every option and find this to be the broadest, least complicated, and fairest solution. Business License Fees will be immediately available, something that is critical for our budget. And this revenue will grow as the economy grows in the years ahead. I know this approach will cause debate. 

You will all find that there is no perfect solution. What we must all agree on is that another generation of YOUNG Nevadans cannot move through our schools without more resources, choice and reform -- and that we must modernize our revenue system. Together we must establish a plan to continually improve the Silver State. We have an opportunity to show that Nevada leads. Nevada is poised to lead the nation in the technology sector. My budget includes funding to re-ignite the Governor’s Office of Science, Innovation and Technology. It will bring focus to our STEM strategy and coordinate broadband connectivity so that our schools, telemedicine, and communities have the necessary access to fiber technology. It will also administer STEM Workforce Challenge Grants as envisioned by the recent Brookings Institute report. And tonight I am pleased to announce the expansion of one of Southern Nevada’s homegrown technology companies. Switch, the world’s largest data center, is poised to expand to Northern Nevada, bringing $1 billion of investment with it. Switch also plans 1 million square feet of new data center space in Las Vegas, for a total investment of $2 billion. This will make Nevada the most digitally connected state in the nation. The list of companies wanting to do business in Nevada keeps growing. But Nevada’s unemployment rate is still too high. Much of the persistent unemployment can be attributed to construction jobs, which were cut in half in the last recession. Getting housing construction back to pre-recession levels would create thousands of new jobs. I am calling on the Legislature to pass reasonable construction defect reforms to revive our housing market, and bring new jobs to Nevadans. 

We can lead by spurring construction in other areas as well. The Department of Transportation’s Project NEON will invest $250 million to improve southern Nevada’s I-15, reduce congestion, and create construction jobs. Other statewide projects will use another $230 million for construction, maintenance, and future planning. In Las Vegas, the Convention and Visitors Authority is helping us remain competitive with the proposed Global Business District. This District will add crucial new technology that conventions demand, and it will add new trade show space that could generate $700 million in economic impact every year. This project is critical to maintaining Las Vegas as the entertainment and convention capital of the world. Threats to the sagebrush ecosystem, and the resulting potential impacts to Nevada’s wildlife, agriculture and mining, offer another area where Nevada can lead. I will continue to support Nevada’s cutting edge plan to protect our habitats and avoid a listing of the Greater Sage Grouse. Our long history of cultural preservation provides another opportunity for Nevada to lead. My budget includes funding to begin planning for the Stewart Native American Historic Experience. This project will restore the Stewart Indian School IN CARSON CITY, and create a ONE-OF-A-KIND Cultural Welcome Center focusing upon our Nevada tribes. Tribal leaders are with us this evening and I thank and welcome these heads of state to this chamber. I am keenly aware that Autism Spectrum Disorder impacts 1 in every 68 children. Estimated projections indicate nearly 6,000 children in Nevada have Autism Spectrum Disorder.We must meet the needs of these children as early diagnosis and treatment have life changing consequences. 

Through increased state support and better use of federal resources, overall funding will increase from $1.8 million when I took office, to $73 million. My administration is also proposing to centralize eleven agencies within the Department of Business and Industry into a convenient one-stop shop – the Nevada State Business Center. This Las Vegas complex will reduce costs, and provide better service to our business community. Nevada also leads through service. I proclaimed 2014 to be the “Year of the Veteran”. This was part of the Green Zone Initiative, Nevada’s nationally recognized veterans services effort. 

Over the last two years, our veteran’s cemeteries have received millions of dollars in grants to continue to provide dignity, honor, and respect for our fallen. We doubled the number of veterans’ service officers, and as a result, Nevada veterans have received an additional $50 million annually, tripling the amount from three years ago. Unfortunately, Our Southern Nevada Veterans Home is at capacity, and Northern Nevadans have no veteran’s home of their own. My budget contains $14 million in bond funds to build the Northern Nevada Veterans Home. Our veterans deserve nothing less. Seated among us tonight are six veterans, Each representing a different conflict from our nation’s history, and they embody the spirit of how Nevada Leads: Radioman 1st class bill parsons of sparks served in the us navy submarine service during world war ii. Retired First Sergeant Chuck Harton of Reno served in World War II and Korea. Erwin “Moe” McQueen of Ely served as an Army Infantryman in Vietnam. Air Force Master Sergeant BJ Jefferson of Las Vegas served during the Gulf War, Iraq and Afghanistan. Amy Wallin of Reno served in the Coast Guard during the Global War on Terrorism. NATIONAL GUARD Captain Denisse Ramos of Las Vegas deployed three times—twice to Iraq and once to Afghanistan. Please join me in thanking these American heroes. Ladies and gentlemen, Nevada stands at a threshold. We live in a state that is transforming before our eyes – with 21st Century companies, jobs and technologies that place us at the forefront of innovation and the new economy. yet we still operate with decades-old funding systems and an education structure that will eventually grind us to an inevitable halt. I know we have the ability, willingness, and determination to do what is necessary. We all want to tell our grandchildren that we were the architects of the New Nevada – that we were here when Nevada needed us most. Those before us rose to the challenges of their time and built the foundation of the state we love. The Sesquicentennial celebration highlighted those achievements. But tonight, as we close the chapter on 150 years of history, this is our time and we must resolve to make our own history. I am a son of the Silver State. I love our people, I’m proud of who we are, and I’m optimistic about what we can become. I truly believe Nevada’s best days are yet to come. I know you feel the same way. We may stand for different causes. 

We may wear different political jerseys. We may have different beliefs. But we are united in our desire to move Nevada forward with a transformed education system; a healthy citizenry; safe and livable communities; a vibrant economy; and an efficient and responsive state government. With our spirit of perseverance and courage, we must dare to write the next chapter of the Nevada story. A story that Nevadans in 2064 will look back on and say, “they did it right”. I ask us all to rise above that which seems easy. I ask us to lead. I ask us to lead, so that the new Nevada can lead. Thank you, God bless you, and God bless the great State of Nevada.

Governor Susana Martinez: 2015 State of the State Address

Lieutenant Governor; Senate President Pro Tempore; our new House Speaker; Democratic and Republican leaders; esteemed members of the New Mexico Legislature; honorable members of the judiciary; former New Mexico governors; tribal governors; former Senator Pete Domenici; distinguished guests; the State’s first gentleman, my husband, Chuck Franco; the State’s first son, Carlo; and, my fellow New Mexicans.

It is an honor to join you for the annual State of the State Address and open this legislative session.

This session, we must lead with courage. We must commit ourselves to the task of charting a better and stronger future for our children. In everything we do this session, we must focus on how it impacts the children of New Mexico: how it improves their safety and well-being today, and how we ensure they have a future without limits, as they chase their dreams for tomorrow.

Quite simply, there is no greater calling for those of us in this Chamber.

That means continuing to improve our schools so that every child receives a quality education. It means creating a diverse economy, and new jobs, in all sorts of industries. And it means coming together to tackle the devastating impact of child abuse and neglect.

My friends, I am grateful and blessed to have been re-elected as your governor.

I am humbled by the strong support we received statewide - from Gallup to Hobbs, and Albuquerque to Las Vegas.

Yes, Republicans in particular had a strong showing on election night, with candidates who supported tax reforms and education reforms defeating incumbents who had been defenders of the status quo.

Consequently, there is a new Republican majority in the State House. Congratulations to each new member and to your leader, Speaker Don Tripp.

But as I said in my Inaugural Address, voters didn’t choose one party over another in November. I firmly believe they chose progress over politics. They chose to move forward, to keep reforming, and that’s my commitment – to work together with Republicans and Democrats to make New Mexico an even better place to live – for them, and for their children and grandchildren.

Let’s build upon the foundation we have laid over the last four years. After all, we have accomplished a great deal – together:

* Closed the largest structural budget deficit in state history, and put our finances back in order;* Passed the most sweeping tax reform in a generation;* Took ourselves out from under an unworkable federal education law, allowing us more local control, and we now have more and better information about how our schools are performing than ever before; and,* Reformed Medicaid to make it more patient-centered, and expanded Medicaid, providing health coverage to 185,000 more New Mexicans.

We should be proud of these bipartisan achievements.

And as we look ahead, know this. I will not mark time. I ask that you make that same commitment.

I ask that, in every decision, we will choose courage over comfort, change over stagnation, reform over the status quo. Choose the courageous route, paved with policies that will outlast each of us and fundamentally improve New Mexico.

Our greatest challenge is making New Mexico more competitive economically, and less reliant on federal spending. It’s about charting our own course, and creating an economy as diverse as our

great state so that our children and grandchildren can find good-paying jobs here in New Mexico when they finish school.

We’ve worked toward this goal, in a bipartisan way:

Cut the business tax rate by 22%;

* Stopped unfairly taxing our exporting manufacturers;* More than tripled the size of our closing fund to attract companies;* Invested in job training to help small businesses; and,* Focused our tourism dollars behind smart advertising and our record-breaking “New Mexico True” campaign.

On our watch, exports to Mexico are at an all-time high; we’ve been ranked number one in the nation in export growth.

In Santa Teresa, our border port is thriving. New Mexico is poised to become a key trade route between the U.S. and Mexico, Central America, and South America.

Our tax rate on manufacturing improved from 3rd worst in the region to the best in the west.

Even more promising, over the past year, we created 14,000 jobs and our private sector grew at a rate of 2.4% - lifting us in the state-by-state rankings all the way to the 15th fastest growing private sector in the country.

And over the last year, we’ve seen New Mexico companies expand their workforce, as we also welcome new companies here from around the world.

A few of these small businesses have joined us today. Local companies like PESCO in Farmington, a family-run manufacturer that recently committed to adding 150 new employees over the next few years. Kyle Rhodes and Gini Baxter – thank you for being here.

And Vitality Works – a New Mexico company that started in 1982; they added 50 new employees this year and continue to grow and do business throughout the world. Mitch Coven and Jackie Keeper – you do great work. Thank you for being here as well.

Or DHF Technical Products, a California company that moved its headquarters to Rio Rancho last year. Just like Southwest Steel Coil and Flagship Food Group – two other California companies that are bringing jobs here.

Dan Castilleja and Larry Fell, with DHF, said publicly it was our newly competitive business environment that led them to make such a dramatic move. They also noted that they could’ve chosen to do business anywhere in the country, and they chose us.

Dan and Larry, you’ve got that right, and we thank you for moving your company to New Mexico. You will never regret it.

Whether it’s these, or the dozens of other companies that have committed to growing or relocating in New Mexico in the last year, they are proof that we can compete. We don’t have to rely on Washington to dictate our future.

But there’s obviously much more to be done, important work that begins, in earnest, this legislative session.

First, I believe small businesses drive our economy, and they need a level playing field to compete with big corporations. I come from a family of small business owners; I’ve seen it.

We should partner with these risk-takers, and provide additional funding for our successful job training program, where the state pays a portion of the salary of new employees hired in New Mexico while they’re being trained.

We should invest more in MainStreet districts – particularly in rural areas, where we have seen literally hundreds of new small businesses start or grow in the past few years.

And, I am proposing targeted tax relief for small business owners to reduce the personal income tax burden on small business owners during the early stages, while they’re hiring new employees and getting off the ground. Let’s grow our small businesses. They’re taking great risk, and they deserve our support.

But while we help small businesses thrive here in New Mexico, we must compete to bring new jobs to our state from elsewhere.

Recently, the executives of a major national company told me, “We have never even considered New Mexico when looking at places to expand, always looked right past your state. Then someone told us we wouldn’t believe what’s happening there, and that we should take a second look. So, we did, and we couldn’t believe what we found.”

My friends, the word is getting out, but there are several things we can do to turn up the volume.

That’s why I’m proposing a $50 million closing fund for economic development projects.

We should also provide specific incentives to attract companies to move their headquarters to New Mexico.

And, there are commonsense measures we can enact this year that won’t cost state government a dime, but would save New Mexicans money and make New Mexico a more attractive place to do business.

For example, I firmly believe that every person should be allowed to choose for themselves whether they want to join a union or contribute to one.

This isn’t a complicated concept, and most people agree. If a worker wants to join a union, then they will. But it is fundamentally wrong to require membership or take money from the paychecks of our workers in order to get a job. For these workers, this is gas money, rent, or a car payment.

And studies have shown that states where workers are allowed to make this choice for themselves have higher employment levels, and companies locate there more often.

It’s time we protect the paychecks of New Mexico workers. It’s commonsense, and it is long overdue.

We need to make New Mexico a high-tech jobs leader as well. After all, we have all the necessary pieces – national labs, our bases, high-tech companies, and quality universities. But the good ideas being worked on at our labs and universities right here in New Mexico need to be brought to the marketplace here as well. So our kids who dream of becoming scientists can be educated at our universities, and then take what they learn to create New Mexico jobs. We can make that happen, through the Technology Research Collaborative.

And we need stronger incentives for the creation of technology jobs, and more private investment, by Angel investors, in high-tech start-up companies all over the state.

Helping small businesses grow, attracting companies and jobs from elsewhere, and making New Mexico a high-tech jobs leader - that’s how you create a more diverse economy and a stronger private sector. Of course, we also need to build a stronger foundation for economic growth – in particular, better infrastructure and a talented workforce.

Last year, I am proud that we came together to support $89 million in new water infrastructure in New Mexico. Now, however, we must turn our attention to our aging highway infrastructure - to roads that are unsafe, failing, and impeding economic growth.

We’ve seen what happens when we work together to address major highway problems. Just a few weeks ago, we opened the interchange at Paseo del Norte and I-25 in Albuquerque. It was funded, in part, with state money, that leveraged federal and local dollars – a true partnership.

We can complete large projects, of similar magnitude, in every corner of the state. I propose that we allocate at least $180 million of infrastructure money, over the next three years, for major highway construction projects across New Mexico.

Even more critical to building a strong foundation for our economy is our workforce. Are they well educated? Can they read? Did they graduate? Are they capable of holding the jobs of tomorrow? Because if they are all these things, they are employable. There is no question they will be able to create a brighter future for themselves and their families, no question they can seize the American Dream, and no question they can fulfill the desire in each of us to see our kids have it better than we did.

I firmly believe that education is the road that will lead out of poverty for each New Mexico child, for each struggling family, and for our state as a whole.

Why do I believe that? Because education is what plants the seeds of wonder, of curiosity, of excitement in a child; points them to opportunities and goals, inspires dreams about careers, and about better days; gives them hope – that today’s circumstances do not have to be tomorrow’s circumstances.

If we agree education is that powerful - capable of lifting a child’s spirit, a family’s future, and a state’s economy - then a quality education is what we must ensure every child receives.

When we see failing schools, we must turn them around, and have the courage to intervene. Don’t take the comfortable route and simply hope the school will improve on its own someday. Take Gadsden, for example, a poor district, where English tends to be the second language, and where district leaders and teachers could have made excuses for decades of poor performance. But they didn’t. Courage is saying, “No more excuses.” Every child can learn. They took a district that had only one “A” school four years ago to five “A” schools today, and nine “D” or “F” schools back then to zero now.

Or the courage of Judith Foster, an elementary school principal in Las Cruces, to sign herself and her teachers up for our intensive school turnaround program. Her school was a “D” school. She wouldn’t settle for that, and it’s paid off. Today, Loma Heights Elementary has a “B,” with more kids on grade level in reading and math. Judith is here, alongside teachers Stephanie Cabrera and Jeremy Sanchez. Congratulations!

That is progress. And that is what it will take. School by school, we can turn education around. But to improve these schools, we must empower struggling teachers and principals. Give them proven tools and strategies.

Last year, we started the “Principals Pursuing Excellence” program. We paired principals whose students were doing well, with those whose students were struggling, and helped them engage in an active mentoring relationship.

One year later, over 50% of the participating schools increased at least one letter grade. Pojoaque’s Superintendent, Adan Delgado, says it’s making a difference in his district, and two of his principals are here to attest to that. Staci Mascarenas, from Pojoaque Valley Intermediate School, and Vera Trujillo from Pojoaque Valley Middle School, both of whom had the courage to take part, and whose schools have seen great growth in their kids, and in their school grades. Thank you for your willingness to help one another, and to help our kids!

This year, we should fund and implement a similar mentorship program for teachers. Pair exemplary teachers with struggling ones, and in doing so, we can make big gains – classroom by classroom, and school by school.

And, if education is the most powerful tool in the life of a child, we should honor and reward our best teachers and intervene quickly to help those who need it.

But, we must choose courage over comfort. The status quo is comfortable – each teacher paid the same, every evaluation identical, and the misguided belief that all teachers should be simply labeled as meeting competency.

Those are comfortable notions. But, they do not center on the one question we should be asking above all others when it comes to education: are our kids learning?

If that is the central question then there is no doubt we would embrace reform.

Yes, we are evaluating our teachers in a more meaningful way than ever before, and I understand that change can be difficult and challenging. But we continue to listen to ways in which we can improve and make the process better. I will meet anyone halfway, so long as our children learning is the only goal in front of us.

We also continue to look for ways to better support our teachers, because we know how important their work is. For example, teachers tell me two things most often – that starting teachers aren’t paid enough, and that they shouldn’t have to spend money from their own pockets on school supplies in their classrooms.

I couldn’t agree more, and that’s why I’m proposing that we raise starting teacher salaries by an additional $2,000 per year, to help us recruit and retain more teachers.

And to help teachers who are having to pay for classroom materials out-of-pocket, we should provide every New Mexico teacher with a pre-loaded $100 debit card for the purchase of classroom supplies.

I also recognize how difficult it can be in a state as large and rural as ours to recruit certain types of teachers – bilingual, special ed, math and science. So, let’s offer two-year stipends to these types of teachers if they’re willing to teach in schools or districts where recruitment or retention has been a challenge.

And I firmly believe that we should allow adjunct teachers into our high schools to teach certain difficult subjects, such as scientists from Los Alamos or Sandia teaching one or two chemistry classes, or well-trained researchers teaching geometry or calculus. Again, if our goal is to provide our kids with the best instruction possible, these are opportunities we cannot pass up.

Let me say this, however. If education is the key to a brighter future for our children, then we must have the courage to demand that our kids are in their seats and learning. Truancy is a cancer in our schools. Today’s habitually truant kids are indeed tomorrow’s dropouts. It is our collective problem. And we know who the at-risk kids are; teachers say they can spot them a mile away – detached, behavior issues, lack of interest in school and their peers.

So I propose that districts with high truancy problems come to the state with local plans to stop it. Which middle schools could really benefit from having social workers on campus, to interact with at-risk kids? And in the high schools that are fed by these middle schools, let’s hire dropout prevention coaches whose sole purpose is to see these kids receive a diploma.

Of course, despite our best efforts, some young people will not get the message until we have the courage to be tougher. To that end, we should pass legislation that would not allow habitually truant students to obtain or keep their driver’s license.

But ask yourself this: how did many troubled students end up that way - uninterested in school, dropping out, perhaps engaging in criminal activity, achieving far lower than their potential? As a prosecutor for 25 years, as someone who has listened to the stories of teachers who try to reach these kids, chances are, it’s because they can’t read very well.

They fell behind early, couldn’t read a children’s book…passed along.

Words got bigger, chapters got longer, and subjects got harder…passed along.

Asked to read out loud in class? No way. Too embarrassed.

Homework? Can’t read it and stopped trying, tired of failing.

“I’m struggling” becomes “I’ll never understand this,” which becomes “I’m not smart, so I’m done trying.”

When children cannot read, and yet they are passed along anyway, we do them no favors. We discourage them. We frustrate them. We hurt their chances for success in life. We hamper their ability to get a good job. My friends, that does not build self-esteem in a child!

We have condoned this for far too long, taken the easy way out, and made the comfortable decision.

It takes courage to do the right thing. Now is the time, this is the moment, when we stop being complicit in this practice. We must stop passing our children from one grade to the next when they cannot read.

On my watch, we’ve more than doubled pre-K funding, and I’m proposing more this year. We’ve made K-3 Plus permanent, allowing 18,000 struggling readers to take advantage of summer tutoring. I know it starts early, and our efforts to stop social promotion are jam-packed with interventions, starting at kindergarten, to get children help so that retaining them is not necessary. But let’s acknowledge the devastating negative ripple effects of socially promoting our youngest children. It impacts their ability to learn and succeed, it makes it harder for teachers in later grades to bring them up to speed, and it makes it harder for businesses to find the qualified workforce they need.

Let’s choose progress, not politics, on this issue.

It’s true, we’re making gains. Our Hispanic and low-income students are among the leaders in the nation when it comes to advanced placement success, and our lowest-performing students are making progress we haven’t seen before. We are seeing glimpses of what happens when we choose reform, but we have a lot of work left to do. Let’s put our students first, and ultimately, we can create thriving families and a stronger New Mexico workforce.

There are other questions that businesses ask when deciding where to locate and whether to expand - questions beyond whether the state’s finances are in order, whether the state’s tax policies are fair, and whether our education system is preparing an adequate workforce.

Things like: will we get a fair shake? Is the playing field level?

I’m proud of what we have done to increase confidence in state government; after all, four years ago, that confidence was shaken to its core. Corrupt contractors aren’t allowed to do business with the state any longer, judges can now take away the pensions of corrupt officials, and we have recovered over $29 million in taxpayer money that was squandered in the Richardson-era pay-to-play scandals. But there’s more to do.

For example, those convicted of public corruption should be immediately removed from office, not be allowed to stay on the job and collect a paycheck. And, as we have done with appointees in my administration, legislators should not be able to serve in government one day, then lobby that same government the next.

And while we are at it, let’s adopt a few other commonsense reforms.

If a worker gets injured on the job while drunk or high, he or she should not be allowed to receive workers compensation benefits.

And partisan elections should have no place in the selection of our judges.

These are basic reforms, and by enacting them, we can show the outside world that government in New Mexico just makes sense.

Of course, it is also critical that our communities are safe. For our kids to have a bright future, they must be safe and secure. In past years, we’ve strengthened sex offender registration, and closed the loophole allowing out-of-state sex offenders to come here undetected.

The expansion of Katie’s Law has led to an incredible 88% increase in DNA matches, connecting people who are committing a broader range of felonies to previously unsolved crimes. 135 burglaries, 21 sex crimes, 10 homicides…those are lives being saved, and more justice for victims.

In addition, alcohol-related fatalities on our roadways in 2013 were at an all-time low, and that’s encouraging. After all, as our ENDWI campaign emphasizes, it is the responsibility of each of us, in our own way, in a variety of ways, to stop drunk driving in our state. But still, we see too many tragedies, too many lives lost at the hands of drunk drivers. This session, we need to crack down on repeat offenders – the ones who truly don’t get it.

And we need to increase penalties for those who recklessly toss the keys to someone whose license has been suspended due to a DWI conviction.

There are other measures we can adopt to keep New Mexicans safe.

Certain child abuse offenders and those who kill under the influence of alcohol should be required to serve 85 percent of their prison sentence – no matter what.

And, let’s do what the people we represent have demanded. It is time to repeal the dangerous law that gives driver’s licenses to illegal immigrants who come here from around the world.

I’ve dedicated my life to fighting for kids, and fighting to hold those who hurt them accountable. I’ve seen the devastating effects of child abuse first-hand. And, over the next four years, we must redouble our efforts to stop child abuse in New Mexico.

We can start with commonsense initiatives. Create seven new child advocacy centers, where the police officers and CYFD caseworkers who investigate the same abuse incidents work in the same building, alongside safe house interviewers, and other social service groups. Preventing child abuse is a team effort, as is investigating it.

We should also hire more family support workers, who focus specifically on helping those families who have had several referrals to CYFD for abuse or neglect issues - routine checks on the family, and regular guidance and counseling.

We will also have the technology in place to finally allow police officers access to the CYFD history of a family when they are dispatched to a child abuse incident.

And to better recruit and retain caseworkers in state government, I propose establishing a new loan repayment program, where the state pays a portion of our caseworkers’ student loans in exchange for their service. The job of a caseworker is incredibly difficult. It’s why we have such high turnover. We have already raised the average caseworker’s pay at CYFD by 10%, and this initiative is the next step.

We should also close the many loopholes and correct the deficiencies in our current child abuse laws.

For example, when CYFD caseworkers are called to a home, they should be able to prescribe counseling or therapy services and mandate that the parents or other caregivers take part.

Additionally, every single person in our state should be required to protect our children and report child abuse if they know or suspect it to be occurring. That’s always been the law of the land, but sadly, a recent Court of Appeals decision ignored decades of precedent. Let’s set the matter straight.

In addition to making sure children are safe, we must ensure they are well cared for, and provide a safety net if a child isn’t getting the basics, like a good breakfast every morning. That’s why I support expanding the “Breakfast After the Bell” program beyond just elementary school - to middle and high school students as well.

We will also continue to expand the Summer Food program, because our little ones deserve to look forward to their summer break, not dread it out of fear that they’ll be hungry.

Our greatest calling is to improve life for our children. Because they will take our place one day. And I want them to be better than we were: better educated, better jobs, safer homes, and stronger communities.

The spirit of a child is an amazing thing. Sadly, I interacted with children under the worst of circumstances throughout my career as a prosecutor. It was hard. My goal was to get justice for them, and then ask God to give them resilience and the ability to overcome the scars, the pain, and the hurt. Looking back over a lifetime of service, many of them did just that. Those kids would tell me later, “I was determined not to let the adversity of my youth stand in the way of being the person I know I was created to be.”

That’s why it is so important to me that, as leaders, we never make decisions that stifle a child’s hope, dampen a child’s spirt, or put a ceiling on their potential.

We grow our economy to empower them, so that when we tell them they can grow up to be anything they want, they can be confident in that promise. We turn around struggling schools to empower them. We evaluate and help our teachers to empower them. We ensure they can read to empower them.

Allow me to introduce two young people, from Roswell, who are overcoming their own adversity. I’ve gotten to know them well over the past year, ever since they became the victims of a horrible act of gun violence at their middle school.

The last time we were gathered in this chamber together, in fact, they were both in the hospital receiving treatment for their injuries. You’ve thankfully seen their beautiful smiles on the news a few times since.

This is Kendal Sanders and Nathaniel Tavarez. We are so grateful to have them here. Let’s welcome them.

Kendal needed two surgeries, including one to replace a punctured artery.

Nathaniel is blind in his left eye.

Both still have lead pellets in their bodies.

Theirs was an unthinkable experience, and the road to recovery will be long.

Kendal has said she wonders if she will ever be loved because of the scars she has.

Kendal, yes, you are and will be loved. But it goes beyond that. You will be successful. Nathaniel, you too.

We are pulling for both of you, and it is my hope that our actions in this legislative session will say firmly that we are pulling for every New Mexico child to be as successful as their hearts desire, to go as far as they want to go, to be whomever in life they want to be – no matter how they grow up, no matter their background, and no matter the adversity they face. And to do good, and to be better, than we were.

Ladies and gentlemen, now is the time to choose progress over politics. Now is the time to be courageous and bold, not comfortable and apathetic. Now is the time to commit to change, and to reform that will better the lives of our children…because they deserve our very best, and we should resolve to give it to them. Our best days are ahead of us, New Mexico!

God bless you all, and God bless our great state!

Gov. Gary R. Herbert called for investment in education and infrastructure to pave the way for the next generation of Utahns to reach their full potential in his 2015 State of the State address. The full text of the State of the State address is below.

Speaker Hughes, President Niederhauser, members of the Legislature, Lt. Governor and Mrs. Cox, Utah’s First Lady, my wife Jeanette, and my fellow Utahns

I am pleased to join with you to report on the state of our state, though I do so with a heavy heart because of the recent loss of former House Speaker Becky Lockhart. She will be remembered as a talented legislator, a strong leader and as a dedicated public servant who made history as the first woman to preside over the Utah House of Representatives.

Our state is a better place because of her work in this chamber. On behalf of all Utahns, I express my condolences to her family, including her husband, Stan, and her daughter Hannah who are here with us tonight.

This year marks the 70th anniversary of the end of World War II. During that conflict, millions of Americans served and 407,000 gave their lives to defend our freedoms and safeguard the torch of liberty.

Today, we call these veterans “America’s Greatest Generation.” They weathered the Great Depression and fought and won the most consequential war the world has ever seen.  

One of them is Casey Kunimura of North Ogden. He and other Americans of Japanese heritage served in the most decorated U.S. military unit in history, the Army’s 442nd Regimental Combat Team.

We are privileged this evening to have with us Master Sergeant Kunimura and his wife Dorothy.

Our World War II generation met the challenges of their time. While many served abroad, Utahns on the home front bought war bonds, planted victory gardens, and donated materials needed for the war effort. Everyone worked and sacrificed together to secure victory.

Now, I would like to introduce you to some other very special guests – students from Mountain View Elementary in Salt Lake City, accompanied by Principal Kenneth Limb and Assistant Principal Jennifer Mayer-Glenn.

Just as our World War II veterans showed extraordinary valor in becoming America’s Greatest Generation of the 20th century, these students symbolize the potential of youth all across Utah to become the Greatest Generation of the 21st century.

Progress is never easy. The challenges are complex. But each of us has a role to play and must do our part. I reach out to you tonight with a renewed spirit of collaboration and a steadfast resolve. We will do the hard things. We will also do the right things. And we will be the problem-solvers in this difficult era of political gridlock and divisiveness.

Our state’s growing economy has us in a good position to invest in the rising generation. Our revenue is up, our job growth is up, and our unemployment rate is down to 3 ½ percent.

When I stood before you in 2012, we set a goal to create 100,000 private sector jobs in 1,000 days. When our 1,000 days were up, not only did we meet our goal, but we exceeded it by more than 10 percent, creating more than 112,000 jobs. That is 112,000 Utahns–our friends and our neighbors–who can now work toward achieving their goals and realizing their dreams.

We also saved taxpayer dollars by making government more efficient. I have charged every state agency with improving performance by 25 percent and–Good News!–we are on track to hit that target.

As a state we are living within our means and setting aside money for unforeseen challenges that may lie ahead. Today, we have fewer state employees per resident than we did 15 years ago. We have approximately $470 million in the Rainy Day Fund, which is more than we had before the Great Recession.And we concluded the 2014 fiscal year with a revenue surplus of $166 million.

Economic recovery has been our top priority for the past six years. Thanks to the good work of you in the Legislature and businesses in the private sector, Utah is nationally recognized today as the home of one of the strongest and most diverse economies in America.

As a result, we now have the ability to invest in important areas that will drive our economy for decades to come. None of these areas is more important to Utah’s continued success than education.

Many things are going well in our schools. We applaud the work of teachers who have helped make Utah number one in ACT scores among states where all students take the exam. Teachers also helped Utah 8th-graders rank in the Top 10 in science both nationally and internationally.

It is also worth noting that the U.S. Chamber of Commerce calls Utah’s education system the best return on investment of any state in the nation.

As you have heard me say before: “Education is not all about the money, but it is some about the money.”

We have the means to increase our education investment by approximately $500 million in new money. That would be the largest true increase in student funding for public education in 25 year, raising the total of new money going to education over the past four years to $1.3 billion. This session we should continue our collective efforts to give our students and teachers the financial support that they need to succeed. 

As important as funding education is, it is even more important to make each and every dollar count by setting benchmarks for what we will achieve with that investment.  

Yogi Berra said, “If you don’t know where you are going, you’ll end up someplace else.”

I am working with elected officials, education leaders and other stakeholders to develop a comprehensive 10-year education plan so we know where we are going and we end up exactly where we want to be. This plan will allow us to better connect the money we invest to improved outcomes for all students, and provide greater academic achievement. Part of that plan is for Utah to become a Top 10 state in graduation rates, ACT scores, and in math and in literacy.

There is also a need for a more robust discussion in our schools about the founding principles of this country. Our students must understand the importance of the United States Constitution, our free market economy and the responsibility we all share as Utahns and as Americans to participate in the democratic process. We need to understand the sacrifices of past generations that have made America great. Our young people must learn those lessons and never, ever forget them.

Local school administrators and their boards know more about the needs of their students than anyone. As champions for local control, we should not only ensure that they have the resources they need, but we should empower them to apply those dollars where they are needed the most.

Whether that means raising teacher salaries, hiring more teachers to reduce class sizes, investing in more technology, increasing the number of guidance counselors, or addressing a variety of other high priority needs–with appropriate accountability measures in place, local school districts and charter schools should be in control of those decisions.

As we continue to step up our investment in education, we must not sidestep our commitment to the principle of local control.

Next week I will join with Attorney General Sean Reyes and others to deliver a report to the state school board reaffirming that our state is now, and always will be, in control of every aspect of our education system. Rest assured, we will assert our rights to exercise local controlover what we teach and how we teach it.

We will never back away from the challenge that every state in America faces today—the constant overreach of the federal government. If states fail to stand up and speak out for our right to self-determination, we will lose that right to an ever-expanding federal bureaucracy.

Washington really does believe that “one-size-fits-all;” they really do believe that a Washington bureaucrat knows better than a Utah parent or a Utah teacher; and they really do believe that the federal government can manage our affairs more efficiently than we can here in our home state.  

They believe it. I don’t believe it. And I know you don’t believe it, either.

This principle of self-determination not only applies to education; it applies equally to health care and to the management of our public lands.

I believe that the Affordable Care Act is a deeply flawed and unacceptable piece of legislation. But short of the opportunity to “repeal and replace,” which I would endorse, we have but one option–to make some kind of lemonade out the lemons we have been given.

That is why we created Healthy Utah. It is a plan that respects our own taxpayers, promotes individual responsibility and supports private markets. As complex as this issue is, there are three main reasons why Healthy Utahis a responsible solution.

First, the Affordable Care Act—which is the law of the land—requires Utahns to pay almost $800 million in new taxes each year. The choice before us is stark: we can either watch our hard-earned tax dollars remain on the table in Washington, D.C., primarily benefiting other states, or we can bring back a significant amount of our own money to Utah to be spent on Utahns. When it comes to expanding health coverage for uninsured Utahns, accepting the benefits is optional, but paying the taxes is mandatory.

Second, Healthy Utah will help fix the problem ofnearly 100,000 people who too often use our health care system in the most inefficient and expensive ways. It’s better to give them access to private health insurance rather than have them continue to receive their health care in emergency rooms. Because, when this happens, the quality of our health care goes down and the costs go up for everyone.

Third, Healthy Utah addresses the health care needs of our citizens while respecting core Utah values. Chief among these are self-reliance and the dignity of work. We can connect people in need of health insurance with programs proven to help them improve their employment, putting them on a path to self-reliance.

Now I know this is a challenging issue. But I also recognize we have been elected by the people to resolve the tough issues and to resolve them together. I don’t support the Affordable Care Act, but it’s the hand we have been dealt.

Unfortunately, we cannot prevent billions of Utah taxpayer dollars from being sent to Washington, D.C., but I applaud both President Niederhauser and Speaker Hughes for wisely acknowledging that “doing nothing is not an option.” I pledge to work with them, and with all of you, to make sure that we do the right thing—together—for the people of Utah.

We must also stand up to federal overreach when it comes to our public lands. Utah is, and will always be, a public lands state. The question is, who will manage our public lands most effectively—the best-managed state in America, or the federal government that is 18 trillion dollars in debt? The answer is obvious.

I strongly support the Public Lands Initiative championed by Congressmen Rob Bishop and Jason Chaffetz. I will continue to work shoulder-to-shoulder with our federal delegation and interested Utahns to resolve our public lands issues.

Utahns are significantly impacted by federal decisions concerning our public lands, and Utahns must have a strong voice and role in managing those lands. We value our partnership with the federal government in areas of shared responsibility, but we will never be content to be a silent or a junior partner.

In that regard, the state also needs to stand up and speak out to ensure that our most precious religious liberties are protected. I firmly believe that, to protect the personally held values of people on all sides of this issue, any advancement of non-discrimination legislation should be coupled with legislation to safeguard protections to religious freedom. 

I am confident that, as elected officials, we can work together with religious, business and civic leaders, as well as the LGBT community, to develop policies that treat all people with dignity and respect.

As a result of our abundant economic opportunity and our enviable quality of life, Utah is now among the fastest-growing states in America. Our population is expected to double by 2060. Our task is to take advantage of the opportunities that come with growth, while addressing the challenges that growth presents.

In transportation, for example, maintaining our existing roads and building new ones to accommodate a growing population will cost tens of billions of dollars. While we have sufficient funding for all the road projects currently planned, projections show that our current revenue sources fall $11 billion short of what will be required for our long-term state transportation needs.

I look forward to working with you in the Legislature this session to address this important issue. The time to have a meaningful discussion about long-term solutions to our transportation funding is now.

This is also the year to pass meaningful corrections and criminal justice reform.

We have one of the lowest incarceration rates in the country; unfortunately, it’s still too high. Part of the problem is that nearly half of all Utah inmates return to prison within three years of release. We can change these results, but not without meaningful reforms. Representative Eric Hutchings and Senator Stuart Adams are leading this effort. This is about more than simply building a new prison; this is about rebuilding lives.

Nothing is more fundamental to our quality of life in Utah than the water we drink and the air we breathe. Without them, there is no life and there is no economy.

Stakeholders across our state are working diligently to ensure that we will have enough water to support our growing population. Doing so will require us to conserve more water, to invest more in our water infrastructure and to develop future water sources in fiscally and environmentally responsible ways.

Air quality has long been an issue in Utah—even predating our statehood. Today, our efforts to improve Utah’s air quality are making a positive difference. Over the past decade, we have added 350,000 people along the Wasatch Front while, at the same time, decreasing our total emissions by 35 percent.

When I addressed you a year ago, I called for an accelerated transition to cleaner Tier 3 fuels and automobiles. I have since met with the top executives of our refineries and received commitments that they will work toward producing these fuels ahead of the federal deadline. We are also working to expedite the arrival of Tier 3 vehicles to our state.

We further required business and industry to install stringent new emission controls, and we enacted 31 new state rules to reduce pollution. As a result, business is investing hundreds of millions of dollars in new technology to help clean our air.

While thoughtful regulation is an important tool for improving air quality, I recognize its potential to adversely impact individuals and small businesses. To ease such impacts, we have allocated $1.3 million in grant money through the Air Assist program to help small businesses cut emissions. And I am working with Representative Stephen Handy to reintroduce a bill to invest $20 million to replace old school buses with cleaner, lower-emission models.

I thank you in the Legislature who championed the eight air-quality bills I proudly signed last year. You helped lead the charge to do more to improve air quality than any previous Legislature on record.

Like you, I have always been a strong advocate of open and honest government.

I am working with Representative Mike McKell, Senator Deidre Henderson and Attorney General Sean Reyes to bring forward a proposal this session that would create a new office of Inspector General — one that will act

as an independent entity to elevate and ensure the highest levels of ethics and official conduct in state government. Ensuring the highest standards of open, honest government must always be our top priority.

These are just some of the challenges we must overcome if our young people are to reach their potential to become the Greatest Generation of the 21st century.

Our distinguished World War II veterans, like Master Sergeant Kunimura, stood together to withstand one of the greatest evils the world has ever known. And all across the country, Utahns and other Americans united to work and to stand with them.  

Sadly, 70 years later, much of America is mired in political gridlock. Divisiveness too often characterizes our national political discourse and petty partisanship too often trumps common sense and the common good.

In Utah, I’m proud we do things differently. We have a history of setting aside our differences and working together to accomplish extraordinary things.

For example, many settlers during America’s 19th-century push west did little for those who would come after them. On the other hand, Utah’s pioneers labored to ease the way of those who would follow in their footsteps.

They removed obstacles on the trail; they built bridges and rafts that later settlers could use to cross rivers; and they planted crops for others to harvest. They understood the concept of the Greek proverb, which says:  “A society grows great when people plant trees in whose shade they know they shall never sit.”

More than 165 years later, we are still a people who work together to solve problems and ease the passage for those who follow in our footsteps.

The state of our state is exceptionally strong, but not without significant challenge. We can make it stronger by investing and working together to ensure an even brighter tomorrow for the “Greatest Generation” yet to come.

Our World War II generation is passing the torch to us. They rose to the challenges of their time. It is incumbent upon us to rise and meet the challenges of our time, and to pave the way for our children and our grandchildren to meet theirs.

This is our time… This is our charge… This is our moment!

May God bless us all in this endeavor, may God bless America, and may God continue to bless the Great State of Utah and her people.