leveraged more than $6.6 billion in outside investments. in the third frontier, a major reason venture capital investments have bloomed more than 20% a year, well more than twice the rate of the growth nationwide. [applause] >> this 10 year investment in revitalizing ohio launched in 2002 under the leadership of former governor, and with the bipartisan support of elected officials and voters, is set to expire. now i want to thank the legislature for working toward renewal of this vital program, and i'm hopeful that we will

meet next week's deadline for placing the third frontier on the ballot so that voters can consider it in may of this year. [applause] . . >> ohio's promise -- ohio opportunity is not to be found by clinging ever tighter to a fading past. indeed, the scripttures warn us -- do not say why were the former days better than these, for it is not from wisdom at you ask this, because, my friends, our renewell lies before us not behind us. -- renewal lies before us, not behind us. [applause] >> and even as [applause] and even as we a knowledge the

sincere shared sacrifice we have endured in recent years, we shouldn't lose sight of the fact that we have accomplished some things that no other state has been able to do. we have followed a plan and the pride of our circumstances to protect our investment in the future. california recently announced a 32 percent tuition increase at its state universities. ohio has held to a question to the lowest increase in the nation over the last three years [applause] thank you.

and my friends that is one important reason why we now have 65,591 of more ohioans enrolled in our public colleges and universities that they had in the year 2006. [applause] next door in indiana they are in the process right now of slashing a $300 million in state funds from their primary and secondary schools. in georgia school funding was cut by $440 million and at least 20 other states are in the fifth serious cuts on our school systems, but in ohio, in ohio we are not going backward in our schools. [applause]

using a combination of state and federal resources, we have increased school funding by 5.5% in the last budget. i believe in ohio because we recognize that a superior education starting from the earliest age is the only path to sustain prosperity so we passed an historic education reform plan last year that gives our students and our taxpayers a system and that is constitutional, accountable and incomparable. [applause] thank you, thank you. using an evidence based approach

we have defined it the resources our students need inside and outside the classroom. we have redefined our expectations and our practices with one or purpose in mind -- to prepare our students to become critical and creative thinkers who will ride in the workplace in in life. this month education and we issued its annual report card on the nation's schools. the study looks at more than 150 indicators of school quality and now ohio schools now ranked first in the midwest and fifth in the nation. [applause]

thank you. the report notes that ohio standards for mathematics and science have been cited as a model by other states and that our assessment in accountability practices are among the best in the nation a. our closing the achievement gap initiative has raised expectations and achievements of african-american students. it over the first two years of this effort, participating school districts receive a more than 18% increase in the overall ninth and tenth grade demotion rate. now, listen to this. a highly respected education commission of the state's steady schools and school systems across the country and they have presenting an award for innovation to the state that has best to improve education and put in place what they call

bold, courageous and non-partisan new policies. and just today, just today the commission announced that their record for the most innovative education system in the country goes to ohio. in ohio! [applause] [applause] thank you. let me say to our schools children. we don't know what your dreams will be, but our schools will give you the tools you need in order to make them come true.

in ohio we now better serve those who have selflessly serving our nation. we created the ohio department of veterans affairs, veterans services to unite all our state veterans programs into one cabinet department. with the ohio gi promise ohio became the first-aid in the nation to open its doors and the doors of our state universities and colleges with free tuition for veterans from across our country. we've made military pensions free of state income tax. so let these policies send a clear message to everyone who has warned this nation's uniform. heroes are welcome in ohio. [applause]

thank you. so today in honor of all the servicemen and women from ohio who are bravely serving, yes, i would like you to join me in a moment of silent reflection. let us pray for their safe return and for the comfort and strength of those who have suffered loss and injury. thank-you. i am proud today to say that in assembling a cabinet, and in appointing judges, no ohio government has ever chosen have as to better reflect the great diversity of this great state.

women now hold half the seats in my cabinet. [applause] [applause] among the 40 judicial vacancies that i filled, more than one-third of our new judges are african-americans and more than 40 percent are women. [applause] thank you. one of my recent appointees represents the first hispanic american to serve as an appellate judge in ohio.

and i am also proud and that i have appointed the first to ohio judges the identify themselves as members of the gay and lesbian community. [applause] my friends, public servants should look like the public they serve. [applause] together we have put a steady hand on the reins of government, investing in the things that are essential two our leader and essential two who we are. we are building a government that works better and works on what's most important to ohio. a government that looks like ohio and acts like ohio.

ronald reagan once said that no government ever reduces itself inside -- in size. a government program, he said, is the nearest thing to eternal life and what ever see on this earth. [applause] well, today, today ohio has 5,021 fewer state employees then when i took office. [applause] that is fewer state employees than at any time since ronald reagan was in the white house. two keep our budget balanced we have had to make cuts. but we're also making better use of the resources that we do have. it costs less to make a copy of the ohio environmental protection agency now because of

a purchase copy machines instead of leasing them. saving $19,000. the phone bill went down at the department of health because they are placing more calls over the internet instead of a over traditional phone lines, saving $232,000. and because there truly is no such thing as a free lunch, we have saved $1.6 million by limiting in where and when the state money can be used to purchase food. you know, it's a penny. a dollar there or in the case of our medicated average is $796 million saved by billing third party is we should have been responsible for that payment. [applause]

quite frankly, we have tracked down waste and efficiency like a hungry bloodhound because our taxpayers deserve no less. [applause] now, for a moment i want to understand the serious challenges we have a place in ohio, a serious budget challenges, but i also think we should understand that responsible leadership makes a difference. in november the pew center on the state issued its reports on state finances and state economies. they made an apples to apples comparison at per capita revenue and spending across with the state's and what did they find? ohio is doing better than most tapes at maintaining state revenue and balancing the

budget. forbes magazine did a story just a few years ago about the states that people most wanted to live in. florida was right there at the top of a list today florida is right there at the top of a different list. the pew center is a list of what they call states in the fiscal peril. but florida has a higher unemployment rate in ohio, florida has a higher foreclosure rate and ohio, florida has lost vastly more state revenue and has had a vastly greater budget gaps to fill that ohio. it's true, it's true that in florida they don't have to shovel a lot of snow, but my friends, i would remind you of what rutherford hayes had to say on the subject of whether. he said, the climate of all high always perfect because a climate which requires industry to

shirker comfort is in the very climate which produces the highest civilization. [applause] and by that standard, by that standard we have reached some fights in civilization. [laughter] you know, i believe in ohio because while every state has taken a hit in this economy quite frankly we are tougher than most. i believe in ohio because our cities shine brightly in the centers of commerce and culture. i wanted now was the valuable work with the ohio city task force. in the speaker, i want to express my appreciation for the fact that you have made this important subject a priority and i would like to see us move forward on several of the past -- task force recommendations including transportation, innovation authorities and land banks. [applause]

the task force also called for action to help prevent foreclosures. now, both the house and the senate passed bills that would it reduce foreclosures in ohio. and today i am asking members from both chambers, both sides of the aisle to bring to gather your best ideas and put a bill on my desk that will help ohio wednesday in their homes. [applause] [applause] thank you. ohio cities have very different economic identities and it's

time we formally recognize that fact and help build on those strengths by designating ohio's hubs of innovation and opportunity. already in a tin and the surrounding region, we have created an aerospace ha but that recognizes the wide array of a research and production that goes on there. today we are opening of the process all across ohio. this year all of ohio's eighth largest cities will have the opportunity to hold hub status. as a hub it will provide planning money in the realm of assistance to older -- to build between strengths anchor in the urban core and the surrounding region. in short, we're going to help our cities and regions to more of what they do best. you know, ohio consistently ranks among the top three states in average revenue per minority. and we are proud of that we're

the home of opportunity. i am pleased to announce today a new partnership with the cleveland based nonprofit group of a jump-start. our private project in 20 east ohio counties will assist high potential minority-owned firms in developing business plans for sustained growth and in accessing investors and venture capital. [applause] i believe in ohio, i believe in ohio because ohio agriculture is so important not only to our economy but to our way of life. but we should do a better job of getting ohios boom and raise of food on to the dinner table so high and families. because ohioans spend about $43 billion every year on food

but only 3 percent of that spending goes to products from ohio farms. moreover, too many ohioans live in neighborhoods where fresh produce is hard to find or impossible to afford a. today i am announcing the ohio neighborhood articles, the largest effort of its kind ever undertaken to map access to a healthy and it locally grown fruits. [applause] working in partnership of local governments, the private sector and nonprofits, we will use our findings to design a state wide strategy to improve access to ohio grown products and to ensure that people in every neighborhood in ohio have access

to affordable health food. because there shouldn't be any neighborhood in ohio or the only vegetable for sale is the pickle on a fast-food hamburger. ohio is a soybean state. we are acorn state. we are a logistics' state, right in the heart of it all. and we aren't the polymer state. all these things make as the ideal location for a and advanced bio refinery that converts farm output into food, fuel and bio polymers. toothbrushes, cellphones, cartridges, there's a list of products as long as my arm made from products that could be made it from biopolymers. and i will tell you this, there's absolutely nothing that we can do to secure the

sustainability of our nation and that is of great importance and depending upon the midwestern farmers to meet our needs instead of had the midwestern -- mid eastern oil baron to do so. [applause] some of the company is currently drawing up plans to build a bio refinery, bring those plans to us because our agricultural output, our know-how, our location, we are sitting on a treasury and we will do everything in our power to tap it. now, in summary, the energy gave way fun, hubs of innovation, the

ohio neighborhood harvest, i believe in ohio because we will invest in the things we do exceptionally well and we will create jobs. [applause] renewal of a third front. it plans to buy all refineries, we will invest in ohio and we will create jobs. the most innovative schools in the country, teaching people the skills they need to start a business, in sourcing ohio jobs, health and manufacturing workers show what they can do. i believe in ohio because we will invest in our people and that we will create jobs. [applause]

small business and growth partnership, a ground-breaking agreement with p & g, i believe in ohio because we will in shackled those who make things and we will create jobs. [applause] the smallest state workforce in a generation, hundreds of millions in savings and unprecedented efficiency, i believe in ohio because we will save taxpayers' resources so that we can invest more in the things that matter most and we will create jobs. [applause] we are rebuilding an economic foundation and we are doing it

so that our middle-class can once again stand tall. yes we have been knocked down, there's no doubt about that. but as the legendary football coach, vince lombardi, used to say -- it's not whether you get knocked down, it is whether you get back up. [applause] and ohio will rise again! [applause] [applause] because, because there isn't a single thing that is wrong with ohio that can't be fixed by what is right with ohio.

[applause] so i believe in ohio, i believe in ohio because everything we've done today will help us pry tomorrow. i believe in ohio because with god all things are possible. [applause] thank you. [applause] [applause] we continue our look at state of the state address this with south dakota governor mike

rounds, focusing on federal stimulus funds while urging his legislature to balance the state budget. from pierre, this is an hour in 10 minutes. [applause] >> thank you. thank you all very very much for the very kind welcome. we've got governor do guard, mr. speaker, members of the state senate and state house of representatives, mr. chief justice culbertson, justices of the supreme court and other constitutional officers and the people of south dakota, welcome to the 2010 legislative session. i am i am sure as well as myself and all of the other electoral officials here are very grateful and tom zero by the trust and confidence that the people of south dakota are putting in at us to serve them. and so did the people of south

dakota, thank you for allowing us the privilege of serving you. seven years ago i stepped up to this podium and i told do what i can't believe the people of south dakota and want us to do for them. i simply wanted us to be mindful of the basic responsibilities of government, helping care for those who can't take care of themselves, protecting them and from those who would do harm, educating our students because they are are a future. i simply wanted us to increase tourism to turn more of our agricultural commodities into a finished products and boost wind power, ethanol production and other alternative energy sources. i simply wanted us to improve health care access to increase economic development efforts and help create more job opportunities. i also said they wanted us to make state government more effective, providing more property tax relief, and oas

always protect the rights and their freedoms. and they told us that the biggest challenges that we face is two keep our young people here within our borders in south dakota. anybody who has ever been on the campaign trail or have a couple of a copy of the local conaway or just plain mean up against a pickup truck to talk with friends knows that those are not just republican goals, nor just democrat goals. there are the common goals on which almost every south dakotan of every generation would agree. building. the people have elected us to get those things done and i'm proud to al say that all of us, democrats and republicans, east river and west river, city, town and rural are getting those things done. so no matter what the congress or the national economy dumps on us in the next year, i am

still optimistic. we will recover. we will have more jobs and we will continue to improve our quality of life here within our state. now, we're enduring tough times. our most recent unemployment levels in south dakota are at 5%. the national level the unemployment level is 10%. we've always been lower within our state. with the national level the unemployment level list &. we have always been have lower within our state. from 2004 to 2008, south dakota was consistently lower by 1.5 to 1.8%. last year south dakota was lower by 2.5%. so with the national rate at 10% he would seek to the cutting south dakota's on employment rate based on this historical se between 70 and five and 8.5% unemployment but we are not.

we are at 5%, one half of the national rate. i believe the reason things are not worse insult code is due to the hard work of many of our business owners and managers throughout the state. instead of fleeing off more people to have worked hard to keep people employed. some people may say that they have just kept their employees because they want to make sure that they can take full the vantage of the business opportunities as this recession ends and i suspect that is probably true. but there's another reason as well. because in south dakota business owners and managers, while they see their employees a dull but differently, because they are not just employees to them. they are their friends, they are their neighbors, and they are the people who have made their business is successful in previous years. they want to help their employees me get through these tough times, and so they have done everything they can to minimize the layoffs. we need to say thank youtube our

thousands of business owners and managers very much for their concern and their dedication to their employees. but of course we also have a lower unemployment rate because south dakotans have a fantastic worth work ethic. our fellow citizens want to work. we see value and dignity in every kind of work. because our people are hurting. state government is also doing what it can to help people during these tough times. first of all, we are helping with basics of life such as medical care and food. from december of 2008 to december of 2009, the number of people being helped by medicaid has increased 7%, from 103,626 to 110,734. the number of people using food stamps has increased 36%, from 67,002 injured 99 to 91,915.

for other necessities, as of last week, we are providing 7,992 people with unemployment insurance payments. of course the best solution to unemployment is a job. since april the department of labor has provided one on one intensive case management for 4,597 newly unemployed people and 39% of the them are already reemployed. we are also working with technical institutes to provide tuition assistance for students and to create special short-term retraining programs in areas such as truck driving, welding, energy, electrical and mechanical and machining. support and to bush and assistance for technical students has almost tripled to 2 million to under $50,000, and another 1 million has gone to our nursing skulls and both

private and public universities and technical schools. we will also be proposing a change until law to give more help to people whose unemployment benefits have expired. ephemeral when approved training programs there would be in the allowed an additional 26 weeks of benefits. if you can't get a job the next best thing is to increase your knowledge and upgrade your skills to get a job. we are helping people do that, too. public university fall enrollment has increased, again, by 836, to an all-time high of 33,779 students. public back to the technical institutes fall enrollment increased again by over 900 to an all-time high of 5,951 students. we are also offering nontraditional students easier access to education with a new attendance centers in pierre, rapid city and sioux falls. and last year, over 21,000 south

dakotans also purses paid it in online distance learning courses to increase their knowledge and improve their job skills. because of increased university system and romance, 861 full-time equivalents, or fte also known as jobs, have been added to the region's rosters. that accounts for nearly two-thirds of all of the increases in ftes l0| over the last seven years. most of the rest of the new ftes were added free essential government services such as prison staff, child protection services, firefighters and the homestake laboratory. additional education and training is also one of the best ways to create more jobs in the future. we already have agreed business climate, but companies recovering from the recession will also need a well-educated and skilled work force. our public universities, with

advanced degrees and research programs, created better work force. our technical institutes, with their targeted training and programs, they are also creating a better work force. we must continue to grow these opportunities, especially now, when other states are cutting back. the department of tourism and state development has also been working hard to help businesses stay in business and to grow new jobs. during 2009, eight redi loans and to apex loans have been extended and 57 companies have committed to expanding work relocating to south dakota. 72% of those companies are south dakota based. we also have developed over 380 new prospects in the past year for future growth in south dakota or relocation to south dakota. but beyond business and government efforts, they're have been thousands of private

actions that have been taken by people to help their relatives, friends, neighbors and even strangers to survive these tough times. during this legislative session, we need to do what most south dakotans are doing during these tough times. they are being frugal, yet they are being optimistic. i am proud, and you should be proud, too, that today, hour to reserve fund balances combined are still greater than what they were at the start of my first budget back in 2003. the budget presented to you in december will use 3.1 -- 31.8 million of the 107 million in our two guerini de funds for the 2011 budget. in the two months since we made our revenue projections for 2010 and 2011, some of our key revenue source is have grown,

but most are down, which means our structural deficit may actually still be growing. even the weather is interfering by keeping people from shopping during the holiday season. the way to start solving our structural deficit problem is to hold down the ongoing spending as much as we can without hurting the people who need our help the most. bye holding spending down this coming year and maximizing the recovery as it develops, the next legislature can have the resources to balance the fy 2012 budget without future tax increases. we need to help make that happen by holding down spending as much as we can and by not taking any more than 31.8 million out of the reserve funds. we are now hearing from washington, once again, that a possible amendment to the health care bill might include a stimulus two fer states.

this would take the form of three-quarters or about nine months' worth of extensions of the enhanced title xix rates for states. additional medicaid funding. we can't count on that and we will not plan on getting it. if it happens, we must spend those federal dollars instead of spending the reserves that we have proposed to use in the fy 2011 digit. we must not use any of these onetime federal dollars for newe 107 million structural deficit that we face in the 2012 year will become a larger, which is not acceptable. because this is my last state of the state message, i want to begin by thanking all of the legislators. your predecessors for working with me during my time as

governor. since 2003, 1,917 bills have been enacted into law, and it's just a few or vetoed. i thought about listing them, but some of you have already suggested that i should not. some of those bills were cleanups, adjustments, responses to federal law or minor things. but the people of south dakota, through us, proposed and won approval for many bills that have improved the quality-of-life for all south dakotans. i'm not going to list all 1917 of them but here are just a few of the lobbies that you have passed because i want you to see some of the great things the legislature has done for the people of south dakota over the last couple of years. we adopted a new uniform child custody procedures and passed a

sixth offender laws to improve child custody proceedings and better protect our children. we changed our birth certificate law to expedite more adoptions. we took actions to save innocent young lives in south dakota and to help people better understand the act of abortion before it may occur. we made it easier for children who have a hearing loss to get co clear in plants. we made it easier for small businesses to provide health care insurance for their employees and their families. we treated the health care risk pool in 2003 and have improved since then said that many more people can use it for health insurance coverage. and we also created a competitive insurance market place so that more people could afford to buy health insurance coverage for themselves and their families. we adopted common sense consumer protections that helped consumers and also encourage companies to do business in south dakota. we adopted moderate trading bands that curbed some of the excessive charges for people

with health conditions. we also helped high-risk individuals who have lost eligibility for insurance with alternatives such as the healthcare principal petraeus we already provide portability of health insurance which is more comprehensive than current federal law and which provides for insurance alternatives for those losing coverage. we already have guarantees of free new ability of health insurance in sure people will not lose their health insurance just because they get sick. and we already have reading procedures and protections for people with pre-existing health conditions. the result is that we now have 13 companies selling group health insurance and 17 companies selling individual policies in south dakota compared to 2003 when the state was faced with the individual market dwindling down to only two insurance companies. together to become actively looking for policyholders.

together we've expanded the 24/7 sobriety program statewide. we have created drug courts and teen courts. we have increased the number of doctors, dentists and other health care professionals practicing in rural areas. we have provided a new way to fund public transportation for our states special needs citizens, seniors and children. and we authorized the creation of a statewide trauma system. we treated the indian child welfare act commission in both state and tribal governments have implemented many of its recommendations such as improving the child placement processes and communications and collaboration on child welfare issues, improving the understanding of the indian child welfare act to further compliance with the federal law and recruiting american indian foster homes with an emphasis on kinship. to commemorate and build on the reconciliation efforts started by governor mickelson 20 years

ago, tribal leaders from private individuals and my staff are working together to develop a plan to commemorate the effort in 2010 with a new year of focus on racial and cultural unity. we will have a special kick off even to announce our goals closer to the anniversary of the start of the year of reconciliation. in 2007, the legislature established the zaniya task force to study ways to create more access to affordable, comprehensive health insurance for all south dakotans. the ehealth collaboration recently secured dollars to implement electronic of records and demonstration project that will benefit us and other states. and also we are working with the tribes on an indian health care initiative. we are requiring kindergarten and compulsory school education until the age of the team and we increased the state aid to local

schools when we get extra money we gave it to our local schools. the state also provided the funding to install anti-virus software and firewalls for 65,000 school computers, upgrade network deal conferencing equipment, and provide network management, security management and student information systems, on-site technical support, website hosting, and both internet access and e-mail for all of our local schools. all at no cost to them. we also passed the indian education act and established the gear-up program for the oceti sakowin consortium to help our native american students succeed. rather than providing remedial assistance we allow them an opportunity in high school to look at what they are going to be steady in the following year and to get an advanced starred in that year. we improved our high school

graduates and requirements, and we also created the south dakota virtual school. this is a fantastic learning resource for students. last year, there were 2,312 virtual school registrations for courses from students in 88 school districts. we have also substantially increased scholarships. richard hagen-minerva hardy scholarship and need of some americans -- native americans, the dakota corpse scholarships and the soft, opportunity scholarships have given over 6,000 students the benefits of postsecondary education. so far we've distributed over $15 million in scholarships. we are also providing more public university advanced degrees than ever before so that our young people can stevens of dakota -- 24 new master's degree

programs and 23 new doctorate degrees. we are increasing the number of ph.d. graduates and students in order to promote more research commercialization. we had to enter 60 ph.d. students in 2002, and now we have 551 ph.d. students, even though many of our master's and doctoral degrees are just getting started. not only do these new graduate degree programs allow students to stay in south dakota with a also give them the extra knowledge and skills to create new businesses and create jobs right here within the state instead of leaving our borders. this enables us to build our economy from within the state. to better, we also strengthened our laws to protect elderly abuse. we passed the first major revision of the south dakota criminal code since 1977. we directed the procedures used in carrying out the death sentence. and we implemented an intensive method bet and amine triet program at the women's prison.

the revised standards of all of our professional occupational licensing boards making them more accountable and efficient. we also started in putting them in our sg accounts for more accuracy and accountability that hadn't been included before. we created an increased many programs for the veterans and for their families. we treated the south dakota certified beef program. we increased protections for grain farmers. we changed the property tax donner you ration system to eliminate the problems caused by the 150% rule. and we created new incentives for value diesel fuel, wind power development and transmission equipment. we've revised our campaign finance laws increase public access to government records while still protecting the citizens privacy. there is more information available now through the state websites -- over 450,000 pages -- than ever before.

in response to a legislator concerns, we also created the open sd.gov website to display budgeted revenue information, salaries, the underpants and a host of other information on just from the state government, but for other local units of government as well. since october 2008, they're have been over 590,000 visits to the opensd.gov website. those are just a few of the things we've done together over the last several years. even though we didn't require the law, we also worked together with our congressional delegation to save ellsworth air force base from being closed. we were able to accomplish all of these things without the higher taxes of other states.

south dakota still has the lowest state tax burden per person of any state in the entire country. we are still able to move forward and get things done because of the hard work both our state employees and our citizens. a great example of that is the 2010 economic development initiative and the state's business plan. in 2003, south dakota and came to eight regional summits and one statewide summit to volunteer their visions and goals for the year 2010. they said they wanted a south dakota that was economically strong, technologically advanced, culturally rich, attractive to visitors from around the world, and enticing to scientists, researchers, business leaders, and young professionals as an excellent place to live, work, and raise a family. to make that happen, we created major goals. goal number one was to double visitor spending from

600 million to 1.2 billion. since we established that goal, sought to cut a visitor spending growth has outpaced the regional and national averages. in 2008, the national experienced -- nation experienced by your gasoline prices and as you all recall followed by the first stages of the recession. despite these challenges we saw 2.8% growth in visitor spending and reached $967 million. the figures for $2.9 will not be available until later this month. however, anecdotal reports from partners alert and visitor industry in the key south dakota held its own. we are cautiously optimistic the south dakota did well compared to national trends. we did several very good things in 2009 to boost visitor spending, such as a new social media campaign, further expansion of the fall shoulder season with the special "royster

rushed" haunting promotion, expansion of e-mail marketing and search engine efforts, and the creation of the statewide "one clich one call" reservation system. this is part of the digital revolution and tourism marketing and will allow potential visitors to book vacation packages, rooms and tickets through the tourism website. we also increased partnerships and cooperative efforts. the challenge grants are good examples of these efforts. local people make local decisions on how to use the grants to promote tourism in their own communities. in aberdeen, marketing promotions work done for the brown county fair, the great aberdeen payout, and the northeast celtic fair and games. rapid city promoted summer nights, the black hills' stock show and rodeo, and the pumpkin festival. sioux falls promoted the 2010 summit league tournament. mitchell marketed their gateway

to the west fest. watertown promoted city monopoly and geo-caching. mccaskill used their grant to attract more anglers to the south dakota walleye classic festival. this might promote their destination moreh campaign, and vermilion used their grant to promote their ribs, rods and rock and roll festival. in the outdoors, the department of game, fish and parks have substantially increased opportunities for hunting, fishing and family vacations. we have 1.2 million acres of what in areas for hunting -- 40% more than in 2003. we built new boat ramps and extended others during the drought years and also added 314 campsites, 110 cabins along with upgrading nearly 1,000 other campsites over the last several years. a unique future project will be the potential acquisition and

use of land at the blood run a national historic landmark. this site is along the iowa border in lincoln county. the game, fish and parks department will give legislators a full briefing on this project later this session. blood from was the largest oneota indian village known to exist and to be continuously occupied between the year 1400 the year 1750. as many as 6,000 american indians were there for trade and significant cultural ceremonies. the area also has excellent recreational potential for one of the most heavily populated regions of south dakota. so, we have an excellent opportunity to preserve an important historic site, to teach the next generation's about history and provide outdoor recreational opportunities as well. we are at the beginning stages, but i hope that eventually we can have a new state parks that

includes this location. goal number two of the 2010 initiative was to increase the gross state product by $10 billion we achieved that goal already back in 2007, three years ahead of schedule. for 2008, our gross state product was $36.9 billion. we won't have the 2009 figures until this summer. but in 2010 we will continue the successful july and vision partnership with the soft eckert a chamber of commerce to encourage entrepreneurs. we will be flexible in reevaluating and restructuring our finance program to meet the needs of the new companies we are contacting. we will be more aggressive in recruiting target industries. and we will make financial assistance programs easier to navigate by working with our public and private partners to court may find opportunities. and the certified-pretty sight program will allow state economic development officials to do much of the preparatory work ahead of time for incoming

businesses such as zoning, utilities and easement issues. goal number three is to become a recognized leader in research and technology development. our 2010 research centers have conservative because an economic impact of more than $184 million to the state of south dakota since july of 2004 when they were created. private sector partners investor for $37 million of the centers. private equity investors of invested more than 20 million in companies collaborating and commercializing innovation generated by these research centers. and the 22 research centers have already supported the work of 184 researchers and 576 students. in the new federal defense bill recently signed into law, 20 softcover projects are receiving

almost $40 million. 13 of those projects involve south dakota's 2010 research centers. order edgewood research assistance or internships created for the dakota seeds initiative. but i think a were biggest recognition as a new leader in research has come from the national science foundation selection of home state as the site for the world's deepest underground science and engineering laboratory. we are moving forward with not only our own samford lab with the 4,850-foot level but also the deep underground science and engineering laboratory as deep as 8,000 ft. on may 13th, 2009, the 4,850 level was dewatered and today the water level is almost 5,100 ft underground. the davis capper net 4850 level

is being enlarged. it is named after dr. ray davis, who won the 2002 nobel prize in physics for his experiments in the homestake mine. this month, crews are preparing to install a new deep water pump, which should be on line in march. that pump will dewater home state of the way down to 8,000-foot level. south dakota also took a step closer to the national dusel last september when the national science foundation allocated $29 million to the dusel collaboration for scientists who are developing the lab's preliminary designs, and $19.5 million of that goes through the south dakota school of mines and technology. accepting these funds involves the hiring of 26 people that account for 25 ftes. this is good groove that adds to our economy and will create other jobs, stopping it by

eliminating these ftes would be a very bad idea. in total the national science foundation already has invested more in $70 million in design and planning for the speed and the initial experiments at the same for the laboratory. none of this would have been possible without the cooperation of the barrick gold corporation, a commitment made by the legislature, and by the $70 million gift from the t. denny samford to the people of south dakota. in 2010, lux, or the large underground as economics paramount will be installed on the date is cavern at the 4850 level. the experiment also will be installed. we will begin the water in the deepest levels of home state and making improvements for weld the

lab. most important, the dusel collaboration, and nationwide team of scientists led by the university of california berkeley and the south dakota school of mines and technology will finish a document called the preliminary design report which will be submitted to the national science foundation in december. this document will be an extremely detailed plan for the national research facility here in south dakota. the national science foundation will have reviewed this document every step of the way so when it goes to the national science board and early 2011, there will be no surprises. in fact the national science board will hold its annual retreat in the black hills of south dakota in september of this year. we are on track to become the first home of -- i should say we are on track to become the home of the first new major national research facility since the

fermilab was treated in 1967. we are also on track with education and outreach activities that have already included teacher training as collectors, seminars on five labs, videos and written information for schools, agreed web pages, three drudge what courses and the annual summer science test. we have also expanded the davis scholarship program in collaboration with the grants as a lab in italy, the lead in switzerland, the princeton university, the fermilab and brookhaven national lab. so many things have already started to happen for science and south dakota, and ladies and gentlemen, i believe that it is only the beginning. merkel number for was to develop and to brand south dakota's quality-of-life as the best in america. we all know that we have an excellent quality-of-life, but to brand it means we want the

rest of america to know about it so people will come here to both visit and help us create more job opportunities. our efforts are paying off. the small business and entrepreneurship council studies 34 indicators to determine how business friendly the states are. the great south dakota as number one. the tax foundation analyze the impact of tax laws on economic performance in every state. the rate south dakota number one. forbes magazine analyzes business costs, living costs, and other factors to determine the best small place to do business in the country. the great sioux falls, south dakota, number one. education week magazine studies how technology is used in the schools in the united states for both use of technology and access to technology. the rate south dakota number-one

the most recent business facilities ranking report measures 20 factors of quality-of-life including a low crime rates, material well-being, job security availability of recreation, health care, education and the cost of living. the rate south dakota number one in quality-of-life. goal number five is to uphold our commitment to the 2010 initiative as a work in progress. that means we will continue to challenge ourselves to make south dakota even better because we want to encourage more of our young people to stay here for to come back home to south dakota for their careers. to further improve health care in south dakota, we also implemented a prescription drug plan before the federal government did it. we started partnerships to encourage more students to choose health careers.

we launched a childhood immunization program that is one of the best in the entire country. we reduced smoking and we successfully coordinated hundreds of thousands of flu shots. outside of government, the commitment to better health care by our hospitals, clinics, nursing homes and our health care professionals has been nothing short of fantastic. they say that they are only doing their jobs, but we all know of many instances when the people caring for ross and our loved ones have gone well beyond doing just a job. there are five other areas that also have an enormous impact on the current and future quality-of-life we have here in south dakota, and we are working hard to improve all five of them. they are water, energy, transportation, agriculture, and education. this year, i am proposing an omnibus water bill of

$14,200,000, to under 75,000 of that as federal funds, 13,925,000 come from the other funds indicated to this work so that we can continue to provide good, clean water for our people, livestock and economic development and opportunities along with needed funding for waste water treatment and solid waste facilities. this proposal appropriates $6.3 million to complete our pledge to prepay the state's cost shared commitment for the low was and clerk regional water system. also included is the establishment of $12 million in state costs share as a commitment to the southern black hills rural water system. the cost of energy and its availability are also major forces in creating self to code

a's future. we need access to a wide variety of affordable energy for our economy to thrive. we also need to do our part to help the nation become energy independent from the middle east and venezuela. since 2002, we have made several changes in the law to promote and accelerate wind power development. in 2002, south dakota was producing only 4 megawatts of wind power. currently we of wind power production capacity of 314 megawatts and another 309 megawatts are under construction. when the projects are completed, south dakota will have enough power generation to power 170 tills and homes. based on the electric is now the permitting process for an additional hundred 50 megawatts as a wind farm bill would be located south of the springs and

they hope to start constructing this project this summer to recover greatest roadblock to creating even more wind power is lack of transmission capacity for the future. it can cost as much as one to $3 million per mile to build new transmission lines. unfortunately the big stone project has been killed and would have provided another 1,000 megawatts for wind power transmission lines. that's enough capacity to carry the electricity produced buy almost 700 wind turbines. but other projects are still on track. the three injured megawatt your creek station natural gas power plant near white south dakota is on track for completion in 2012, the hyperion energy project is also on track to break ground in 2011 and start refinery production in 2015. it will create thousands of jobs

in its construction and operation. it will also process 400,000 barrels of crude oil per day to make cultural low-sulfur gasoline, diesel fuel and jet fuel. this 10 billion-dollar project will be the largest private development in the state's history. transcanada's to pipelines are also on schedule. together they will carry over 1.2 billion barrels of oil from canada to american refineries. south dakota also continues to be a national leader in the farmer owned ethanol plants and ethanol production with a capacity of producing 990 million gallons per year. that is tremendous growth from the 165 million gallons south dakota produced in 2002. all of these activities will help south dakota and south reliable and affordable access to electricity and fuel while helping our nation become more

energy independent. the future of the state is also very dependent on transportation primarily the roads, bridges and railroads. transportation is a key factor in where the most economic growth will happen. year to date, since 2002, we have spent over $2.5 billion on new or rehabilitated state highway projects. 1.8 billion in federal funds, a 76 million in federal stimulus on this and 646 million in state tax dollars. over 40% of the state's system has been constructed or repaired since 2002. that includes resurfacing 2100 miles of asphalt, resurfacing or reconstructing 634 miles of concrete, reconstructing for under 60 miles of highways, constructing 180 bridges and

culverts repairing 550 bridges. we will successfully negotiated the real world of wine losses so the shippers now have better access to markets. we completed 556 local transportation projects worth over two injured million dollars. we completed the mitchell aberdeen to buy 29 and pierre to expressways in the rapid city heartland expressways almost completed. we also received $15 million in extra federal funding because we effectively and efficiently issued our stimulus funded contracts. during 2010, we will be spending $45 million in state funds, trent 40 million in federal funds and 107 million in federal stimulus funds on highway improvements. we will also be working with our other rural states to secure the passage of the new surface

transportation act by congress that will be fair to rural america and also continue to manage increased construction costs and increased maintenance cost and decreasing revenues. agriculture has been the steady constant in our economy for decades. but in recent years it has become even more important because we are adding value to the commodities to create more and come right here within the borders. government primarily provide certain services to people. but our farmers, ranchers, processors are growing, creating and producing food and fuel that are the basic necessities of life and for many millions of other people. many people don't realize the extended drought period that we just experienced recently was statistically worse than the

dirty thirties but we didn't experience the devastation because the farmers and ranchers over the last 80 years have implemented many conservation actions and decreased the impacts of the drought that occurred in the early part of this decade. soft eckert agriculture is an annual economic impact of over $21 billion. over 170,000 south dakota and for employed in agriculture related industries and a record-setting farm and ranch income in 2008 helped to lessen the downward impact of the recession in 2009. and while commodity crosses are down into those in mind particularly for livestock and dairy our farmers once again said no grain production records this last year. that took a lot of hard work. but our farmers and ranchers would be the first to say they are most thankful first and

foremost to the good lord for the blessings they have received. in the long run, i believe we are on the right track of turning more commodities into finished products, corn into ethanol and distillers grain, milk into cheese, grapes into wine and turkey into finished products ready for the grocery store. the provisions plan -- the plan and hiram is a example of the success. since 2006, which is the year that it started in operation, a number of turkeys processed has increased from 3.2 to 4.6 million. payroll increased from 4 million to 16 million. employment has skyrocketed from 270 to 640 and sales have increased from $69 million to

$155 million. and all of those numbers increase again in 2010. the state helped by making that happen. we provided a value added sub fund loan into the street to the feasibility study to explore opening a producer owned processing so that the bye awarding a refund loan and efta donner for permanent financing on land and building equipment and 2005. the state also helped by awarding a work force to tell the grant to help train 382 new employees in 2006 and by providing an apex lunch partially finance new administrative office building in 2006. dakota provisions fully repaid its value added sub fund loan last september. we are also helping farmers and ranchers design and build environmentally responsible feed lots so we can feed more calves right here within the borders instead of exporting to other states.

950,000 calves left south dakota last year to be fed and marketed somewhere else. if we get fed and finished them, and marketed them right here, it would have met an additional 6,650 new jobs right here. in the part of agriculture we also created a regional type ii incident management team that response to our own failures and fires and other states. it has also worked in other disasters such as the new orleans hurricanes and fargo floods. this required 22.5 ftes but he made the right decision when you approach them because we would rather have them located here in south dakota than in another state so that south dakota ins will hold these jobs and are closer to the black hills when we do have a fire. i think our people appreciate having that team here even if it means we have to count them as ftes. by the way, the federal government is paying 100% of the

cost. we have also trained over 1,000 state federal local and volunteer firefighters in the past year. we are also improving the state fair. attendance is up 22% over the last three years. camp grout revenue was up 34% and sales tax collections are up 86%. corporate sponsorships are up 90%. a number of vendors is the largest in the last ten years, and the total number of 4-h exhibit has grown to over 15,000. we also have a responsibility to provide educational opportunities to all of our citizens. my budget proposal has over 607 million going to education. of that, 390 million goes from the state to local schools who will combine that with local property taxes and federal funds

and then spend approximately $1.1 billion in local, state and federal taxes on educating approximately 123,000 students and this next year. even so, it seems like we talk about that money a huge amount of time instead of the goals and the results of education. so, let's look beyond the money for just a minute and see what is being accomplished. the most important achievements belong to our students. their test scores are improving. since 2003, the number of students who are proficient or advanced in mathematics has increased from 59% to 75%. the number of students who are proficient or had been stampeding increase from 71% to 84% in 2008.

in 2009, a more difficult test was started, and it will be the new baseline for future years. american college testing or act scores increased from 21.5 to 22. and all for categories of english, math, reading and science, our south dakota students score high year than the national average. in south dakota, 74% of our students take the azt tests. at the height of a percentage, the greater the chance that composite scores will be lower house, because you have more and more students taking them. but in the 11 states where at least 74% of the students take the act test, south dakota students have the highest composite score. in other areas of comparison, in 2000 when we had a high school graduation rate of 89%. that's good, but we can do better in the future. but the percentage of high

school graduates going to college has also increased from 69% to 72%. in the gear up program for native american students, 87% of the participants have gone on to post second reeducation and 65% have already graduated or are still enrolled. our for locally managed technical institutes are also doing a very good job. they are working together as a system with shared goals, strategic plan and partnerships with businesses to meet the work force needs. enrollment the last five years has grown by 14% for the most recent year the combined placement rate was 97% with 88% of those graduates being employed in the chosen field and 83% of the graduates stayed in south dakota. 25% of all technical institutes

graduates are in the growing career field of health care. glasses are expanding for energy related careers in areas such as it looked as the distribution and natural gas and propane production and distribution. wind german construction and repair, typesetting, mill writing, fabricating and automated controls. our technical institutes are also working together with high schools on to will credit courses to read the technical institutes also have over 220 articulation agreement with universities for course credit transfers. i've already mentioned the great job the public universities are doing for the students with master's degrees and doctoral programs canoe out reaches of the dinsmoor online courses, more scholarships, more research to create jobs. the articulation agreements and great collaboration with the samford file that homestead the public universities are also growing enrollments and preparing people for a central careers in south dakota.

fall enrollment in 2002 was 29,533, and the fall enrollment in 2009 was 33,779, or up 14.3%. the number of graduates has also increased from 4,885 in 2005, to 5,445 last year. all of the things i've mentioned and much more just don't happen on their own. we have a hard working and dedicated work force of state employees who care about their fellow south dakotans and do a tremendous amount of work every single day. at this time i want to say thank you to state employees and local employees because they truly have done some very, very good work as servants to all of us.

2010 is the 100th anniversary of the opening of the state capitol building. 100 years ago its construction symbolized the end result of a long difficult struggle for statehood. it was also the ending of fierce battles between several towns to determine which helm would be the permanent home for state government. there will be to special events this year to recognize this building and what it symbolizes. everyone here and all of the people of south dakota are invited to attend. monday march 1st from 5 to 7 p.m. there will be a special reception a share in the capitol rotunda. and on saturday, june 19th, there will be a grand celebration all day on the capitol grounds. about this building, governor

crawford said as the people come and go and of linker within its walls they will see in it an expression of the soul of the state. i think i know what governor crawford meant because i feel it every day and have the privilege of coming to work. wonderful history of the state in title de challenge this ought to cut store. was written by a gentleman by the name of robert. she wrote south dakotans have a fierce but quiet pride in solving problems, achieving beyond anyone's expectations and not only surviving but prevailing against every challenge that they are given. fires, floods, influenza, drought, when storms, tornadoes come mudslides and lizards, they challenge us in south dakota. they don't defeat us.

they make us stronger. i remember so many fires in the black hills where a volunteer fire department from all across the state even hundreds of miles away would rush out west to not only doubled the flames but also save the homes and businesses of people that they didn't even know. i also remember one large buyer earmarks this where a small army of ranchers with their converted pickups were fighting as best they could. one rancher was returning home with his 3-year-old son and spotted the fire fighting and immediately drove toward it. he found a state trooper and asked him since you have to stay here and man their radios would you mind watching my son while i go and help this five-year? of course he did. and the fire was quickly put down. during the aberdeen james river valley flooding over 600 state workers left their regular jobs

in shifts to help people recover. another time an elderly couple hung on for their lives on a flood and mud slide came through their hillside homes after they were rescued someone said what are you going to do now. they didn't think twice about it. they simply said we are going to rebuild. a few years ago, when we had a blizzard and ice storm that broke over a 11,000 electric poles, many state and local workers and volunteers went door to door to make sure everything was okay and people were safe. you remember the blizzard. small towns were without electricity and we were concerned about some of our elderly population and we had groups of teams of members, local folks with state help going door-to-door, snowplows driving them through to touch base in each of those outlining

houses and one particular case the group of four went to a door they thought somebody should be at home and they knocked on the door and nobody answered. they knocked again and nobody answered. so this is south dakota and the door was open and they just walked on and. they came in and sure enough a leedy of the house was there. do you remember the story? she was 97-years-old. she didn't want to leave. she was in bed. the temperature in the house was 37 degrees. but she was okay because she still had hot cocoa and she didn't want to leave. the law enforcement officer with them said you don't understand we think that you've really should leave and get to some place more and she said this is my home i think i'm okay to stay here. i will be okay. in the social worker with her said ma'am, you don't understand the governor sent us and he says you've got to come with us and she said if the governor says i've got to go i guess i've got

to go. they took care of her. all across south dakota, people were helping one another face the challenges mother nature delivers to us. i will also remember the incredible image i saw in a television screen during the same storm. it was almost a white adult picture but there in the white you could barely see it kind of looked like a truck in the distance than you could see the stub of a power pole and some movement and you had to kind of focus and then you could very, very faintly man in a way to tell blizzard with their utility bucket replacing a poll. the wind chill must have been at least negative 20 but they were there starting the repair already. to help their community.

every year we see one of the most important things state and local governments do is to respond to emergencies to save lives, to prevent harm and minimize damage and help people recover. so i want to say thank you to you as a legislative body because you gave us the tools, training and funding and flexibility to respond to numerous disasters. do approved the combining of the 11 agencies into the new department of public safety in 2003 and approved the building operations center in 2006 has made the emergency response is more effective once again thanks to you. it is true south dakotans have a fierce but quiet pride in solving problems getting astana and prevailing against every

challenger disaster we are faced with. that is the legacy our ancestors have given to us. it is a legacy we are carrying forward to the next generation. and that legacy is not only symbolized but carried out in this beautiful building and it's where the people of south dakota meet and work to solve problems and create new opportunities. i am looking forward to working again this year with all of you so that we can get even more donner for the people of this state. i suspect that's where this speech could probably end, but there's one more thing that we should always remember.

since 2002, more than 4,200 national guard soldiers and airmen have deployed overseas. these are south dakota citizens. the global war on terrorism. 337 were in the air national guard and 72 of them have returned. excuse me, returned home. 474 were in the army national guard and one has returned home. we currently have 266 air national guard airmen serving overseas in iraq and 6 additional members serving in three other countries. we also have 482 army national guard soldiers serving overseas, 114 are in afghanistan. 367 are in kuwait. and one soldier is 367 are in kuwait.

and one soldier is stationed in xhosa beaux. twenty-eight soldiers, 28 soldiers and airmen and one civilian all from south dakota have made the ultimate sacrifice. seven were members of our national guard and 21 were in the regular armed forces. two of those 29, one soldier, and one airmen. we should also say a prayer for the family of sergeant wolf, u.s. army who was not a south dakota native, but was buried in

south dakota last year. for all the years that i served as governor, our nation has been out war. this war to stop terrorism has lasted longer than world war ii, but it is a war we must win. i am grateful that i was given the opportunity to carry forward when bill janklow started with his creation of the world war ii memorial. with your help in the help of many, many thousands of south dakota and we created the korean war memorial in the vietnam war memorial on these capitol grounds. when this current war is over, a future governor and future legislature and the grateful citizens of south dakota have

the privilege of creating a memorial for the current generation of soldiers who are fighting to both defend our freedom and give the precious gift of freedom to many millions of people and their children in far-off lands during the last 20 years. let's never forget that we are privileged group of people. we live in a country where we have freedom and opportunities like nowhere else in the world. we talk about it, but let us never take for granted the right to bear arms. let us never take for granted the right to speak our minds on issues that are important to last, to talk about the direction that our country and our state are going. let us never forget that we have the opportunity ourselves to choose our own leaders.

i wonder how many other people throughout the world wish they only had those freedoms. but we have the opportunity not only to choose our own leaders, but to offer to them ourselves in service as we have done. we have the opportunity to choose a job for the professional, not only by choice, and to succeed or to fail in our chosen profession. our kids, boys and girls both, have the opportunity to a marvelous education. and every one of last has the opportunity to worship the good lord the way that we see fit, whether it be in a church, synagogue, mosque, mountaintop, or cathedral. those freedoms, those opportunities have never been free. they have been defended and 54

by the men and women that have privately worn the uniform of the united states of america. let us thank them again for their sacrifice and their service for all of us. current members of the armed forces of this country, please stand and be recognized by all of us. veterans and members, please stand. [applause] [applause] [applause]

made a good lord continue to bless the state and may continue to shine his blessings on this very special country, and these united states of america. thank you. >> will not be used for another state of the state address this time with maine governor, john baldacci. he spoke about his efforts to improve and streamline state government. from a guest, this is 40 minutes. [applause] >> thank you very much. thank you very much. thank you very much. madam president, madam speaker,

madam chief justice, members of the legislature, members of the cabinet, distinguished guests and my fellow citizens, i cannot remember a time that is presented me with such hard choices and such great opportunities. it is a bit of a contradiction to talk about economic hardship and opportunity in the same breath, but that's the same situation we face today. in the last 12 months, state revenues up on $1.1 billion. unemployment has dropped 8%, housing and businesses are struggling, and people are uncertain and anxious. it's a time of great turmoil. but it's also a time of incredible opportunity and revolutionary change. spent time in our state is breaking with the comfortable past to blaze a new trail. we have come together to say enough, to put our foot down and put an end to the circumstances that have held our people and our economy hostage.

today we are laying the groundwork for economic revitalization and freedom from the tyranny of foreign oil. are we there yet? no. though we are on the way. despite the difficulties we face, the hard choices and hard work ahead, the next chapter in maine's history will be one of resurgence, growth, and opportunity. as i report to you tonight on the state of the state, i am nightfall and or deterred by the road ahead because i know beyond question i doubt that the people of this state, our greatest resource, can persevere and overcome any challenge. and they are looking to us, the men and women who are gathered in this great hall of the people, to lead. to balance tough choices and compassion. to reach were to welcome a bright future, but also to make sure opportunity doesn't leave anyone behind. i see a name that is energy secure, with highly educated and successful people.

natural resources are protected, acceptable and put to work. a place for innovation and creativity prevail in cities, towns and villages straw people from around the world to a quality of life unmatched. this is our job. we're in the midst of unprecedented times. marked in a struggle between recession and recovery. the choices we make will help to determine which way maine goes. about a month ago, i submitted to the legislature might plan to close a $438 million shortfall in the state budget. he continues things you've heard from you before, a leaner government, increased efficiencies and frugality. the causes of the shortfall are well known. our state and country are beset by the global recession that has destroyed jobs and wealth, and undermined consumer confidence. my plan includes tough choices and pain. there's no way around that hard

truth. it will impact people in their communities. and it won't be easy. during public hearings on the budget, we hear people talk about their economic life. many of them told compelling personal stories about how state government touches their lives, the good work that it does, especially in the area of human services. i am committed to maintaining life-sustaining services, but we can't avoid reductions. we must change the way we help people and will continue our mission to reduce administration so there are more dollars available for what's really important. if we can't break down the walls between state agencies to save my major in this crisis, how do we tell other folks they need to go without? my budget proposal also proposes new ways to streamline government. i suggested including cooperation theme the stored national agencies, the folks who help us manage our forests, fish, water and wildlife.

they have so much in common, but they are artificially broken into four pieces. we can save money and improve results by helping them to work better together. you know, during the last seven years, my administration has been aggressive about cutting the size of state government. we've eliminated 1000 positions, about a 20% of the state's workforce. state workers at it and shut down days, lost pay raises and are now required to pay a portion of their health care. we've combined state agencies and departments, school administrations and county and state corrections and we're continuing our efforts to find efficiencies in reshaping government at all levels to be less expensive. i'm convinced that government at all levels can operate more efficiently and administrative costs can be reduced through greater cooperation. we've seen it work with the board of corrections in the regional school units, saving millions of property tax dollars. every dollar that we safer

reduce administration needs more resources for direct services, those places where money does the most good. it's hard to change structures, but we must. about 46 cents of every dollar brought into the general fund is returned. there's no way the state can observe such a sharp reduction in revenues without impacting other levels of government. through school administrative consolidation and identify corrections systems, we reduce the load on local governments. but the times demand more. while it's a tentative first step, i was encouraged by the election results in brewer this fall. voters there approved a ballot question doubled in the process of greater cooperation between their city and bangor. maine is almost 500 municipalities plus 16 counties. where the local government for every 2500 state residents. we cannot afford the redundancy and the duplication.

we have to also recognize that local governments need help. with their unified corrections system, we have curbed state and local spending on jails and frozen property taxes needed for this area. we've been helping counties to hold increases to the lowest level in many years. the system is projected to save $189 million in property taxes over the next five years. in addition, school funding for the budget still will be $352 million more than it was when i took office seven years ago, even after the proposed reduction. and over the last five years, state aid to schools have increased faster than the cost of essential programs and services for the classroom. so for communities willing to change, they can find a way through this recession. now the budget is in your stance, the legislature. just last spring, we work together to cut state spending by $500 million. at the time, it might've seemed

impossible. the leaders in this legislature showed courage and resolve. they put aside partisanship and a trusted one another. when the work was done, the cuts were made and we didn't raise taxes. for some, on both sides of the aisle, it was a hard vote to cast. but it was the right thing to do. now we are again facing the necessity to cut spending. once again, i'm confident that working with the legislature we can find a bipartisan plan forward. there should be no illusions. there are no easy answers. we must balance or government functions while protecting the ball in a bowl economy. while we still have a long way to go, there are some signs that things are beginning to turn around. when i addressed this body last year, i spoke about my visit to domtar in washington county, the plant had just announced it would definitely closing. i'm happy to sit at a 300 workers are back on the job and the owners of the company are committed to finding a business model that will work.

some maine is ready to help. we want to keep those men and women working. we shouldn't take any action that will jeopardize recovery. i will not support a tax increase to balance this budget. [applause] working families and businesses simply can't afford it. i don't question the motives of those who seek a tax increase. they look around and see real problems and people struggling. they're hard style than they have to do something. my heart tells me the same thing. but i know that the best way to help name people is to produce job growth and economic recovery, to spread opportunity and give our people a chance for prosperity. we can't tax our way out of problems, but we can grow our way out of. it was president kennedy that said it was a rising tide that

lifts all boats. and that's what i've been doing, and aggressive agenda that's about creating jobs today and to continue to create jobs for years to come. and it begins with our people in our natural resources. right now, mena's leading new england and wind power generation. and every day this important sector is growing, producing the noble and save electricity. but we'll have begun to just have the potential for wind. the were going on at the university by dr. habib dagher at the university of maine, with a private sector partners and critical support for the federal government. we have a dinner power to develop news cutting sources of energy that can help to forever reshape the world. from start to finish, maine has a role to play. we can develop a technology, use the composites in the university of maine to build the turbines and electricity rates. that means good jobs and it's also important for communities to see the benefits of new

energy developed. that's why i'm supporting legislation that will make sure the wind projects produce tangible benefits to host communities, real benefits to communities that can see and feel that global property taxes or improve public services. there's a burning urgency to the work we are doing. we can't wait. too much is in the balance. what's remarkable is that the right and left should be united on the need to free ourselves from foreign oil and all that dependency does to our people, our economy and our world. whether you believe in global warming or not, ending dependency on foreign oil is a matter of national security that demands action now. [applause] in 2008, this legislature set a goal of producing two gigawatts

of wind power by 2020. with 430 megawatts already permitted, maine is added to the schedule. we're on the brink of a new day. will we allow the clock to be turned back to midnight or will we embrace the dawn? the choice is as dark as night and day. in the coming weeks, i'll submit legislation to continue our aggressive pursuit of onshore wind energy. the plan, which is the result of my ocean energy tax force, will help to start the new industry and confirm maine's leadership role. we will set a target of producing five gigawatts of electricity from offshore turbines by 2030. sounds like -- [applause] that sounds like a long time from now, but in the birth of new technology it's just a blink. in just two years, there'll be a prototype turbine in the water,

producing electricity. in a five years, the amount of power produced will double. already our efforts are being recognized. the deepcwind contostium already includes more than 35 private and public partners through the project of french nearly $25 million in competitive grants and is in line for additional federal support. maine competed nationally one of 12 sites in the country that received the support to construct an offshore wind laboratory. now there are no sure things. but the plan has tremendous potential to create thousands of jobs in maine and attract billions of dollars worth of investment. per amended and wind power development in maine already represents more than $1 billion of capital investment in our economy. so when it comes to energy, maine's potential is not limited by wind alone. matt simons of rockland and when the the world's leaders in its limitations.

not out of the ocean energy institute, which is working with some of the most prominent researchers in the world to develop a new source of energy. matt is working on an innovative approach that would utilize the wind and tidal power to make ammonia, which can be handled much like propane. imagine using the power of the wind and waves to create a new energy source, almost literally out of thin air. matt imagine that, he's working and he's going to make it real. might ministration is working with the ocean energy institute, which is planning to build a pilot plant within the next two years. maine is right in the middle of that action. our future doesn't wholly depend on new tech knowledge he is. men can also look to its forest to help provide depend for an independent future. just as our wood powered industrialization, maine can contribute to new industries, biofuels like ethanol and a new generation of boilers that can turn blood into energy and electricity we need for our factories and our homes. whether it's our ability to produce energy yourself from

sustainable resources or a strategic location between energy which canada and the needs of southern new england, maine is in a unique position to benefit. and i cannot new job, lower electricity rates and cleaner air and water. go stand turbines on their way toward biomass boiler at a factory by new energy future that can reach into every home, bringing benefits that are felt throughout our economy. and maine is a national leader in weatherization in conversation offers. we know that any serious effort to reduce art independent thought with conservation. it's where we get the biggest bang for the buck. [applause] two weeks ago, maine awarded nearly $9 million in grants to companies around the state committed to reducing their energy consumption which will leverage about 81 million private dollars to be used to be

able to not only gets energy efficiency figures and estimates from the apartment of energy it means about 950 jobs. but for tech stack industry in my mouth, the grants are a little more personal. the investment will pay for jobs that will save them were slated to go offshore. those jobs will be saved because energy improvements will help tex tech hold its costs in line. so conservation means jobs. and for those families at tex tech is the difference between hope and despair. and our efforts are limited just to businesses. we have a new program for homeowners that can provide rebates of up to $3000 for weatherization and heating upgrades. and that's money coming right back to families who make the investment to cut their energy bills. it's available to anyone regardless of income. the program helps families to become more energy-efficient, make improvements and results can cut energy bills by up to one half.

no government can solve every problem, because the grandson rebate program show it can give businesses and families the tools to find their own answers. for as long as i can remember, people have talked about two maines. i've always rejected that notion. we are one people, united in the things that matter most. but there is truth to the idea that we live in different communities, each with its own strengths and challenges. we can't be satisfied with an economy that favors one region or one industry. we need statewide growth on a building on the assets that each part of maine is unique and strong. that's the idea behind the great maine forest initiative. i believe it is key to success overall economy and you can find the right balance for tourist and sportsmen, energy and industry. a group dedicated and diverse people have been working since last summer to develop a pilot program for this initiative. now the idea is to create a large-scale conservation that

maintains access for traditional uses. it protects maine's most valuable forest resources from development. provides a stable source of wealth, sustainably managed for forest products industry and our growing energy sector. so we made the wise choice as innkeeper forest as for as there's enough resources for everyone. you know, in the last seven years, maine has been served nearly 1.3 million acres of land, including completing governor baxter's vision for baxter state park. [applause] we've done it now through a state trusted program, the land for maine's future, with federal and private resources and most importantly local support. so environmentalists, private landowners, sportsmen and

industry of bridge the gap that in the past to get them from working apart. that's the model the great maine forest initiative will build upon. in february, will present the innovative plan to the obama administration, where it will be considered as a national model of how conservation can be done in a new cooperative way. no initiative can be successful without the important ingredient of our people. so if we want our economy to grow, then our people need the tools to succeed. on february 9th, i'll be holding a job summit at the augustine civic center. this is a cooperative and between the mainstay kind untracked chamber of commerce and the department of labor. we will listen to people who are growing their businesses in this tough economy and take away the lessons that they can share. we want to put people to work today. we want to make sure that same businesses are the where of tax incentives of business development programs that are available. her example, maine's pine tree

zone program was expanded last spring. it created new jobs for people who relocate here. for 2009, maine receives 65 applications for the program, more than any other year since it was introduced and that's despite of the recession. of those, 27 came from new york and cumberland counties, which may pantries him eligible. these countries are creating jobs right now and that's good news. also at the summit, i want to introduce my proposal to restructure the department of economic and community development. our economic development efforts are going to be more locally and regionally based, growing it from the ground up and not from the top down. this is a new approach and we're going to build on that for success. over the long term, job creation depends upon having a quality workforce. and that starts with a quality education. despite mounting financial pressures, maine continues to demonstrate that our children are our highest priority. education spending accounts or

half of every dollar spent by state governments. [applause] i want to do more, but a good education depends on more than just money. my administration has made it a focus to reduce administrative costs for education, so resources can be redirected to the classroom, where they matter the most. and in those districts that every organized, they are scenes of real savings. we have never sacrifice quality to save money and we will start now. the voters this fall validated our approach to reducing unnecessary school district administration and i will support any changes that undermine dialogue. we must move forward, not back. but i also recognize administrative reform can take you only so far. we are at a crossroads in education. we must make changes. president obama has set aside significant incentive dollars as part of the national race to the top competition. those are for states to be

eligible for increased funding, they must answer some difficult questions, beginning with accountability. teachers and principals are responsible for their classrooms and the students in them. student achievement must be part of how they are evaluated. now there are factors that contribute to student performance, some of them are outside the control of hard-working people but effective teachers get better results. it's time to put that common sense into policy. i know this proposal will be controversial in some quarters. no less than authority than randi weingarten, the president of the american federation of teachers has knowledge urges the student performance must be part of teacher evaluations. how can we in good faith and upgrades to students based on how they perform if we fail to do the same thing for the people teaching them. so recognizing good teachers is an overdue reform. next we need to provide schools with the flexibility to succeed. under my plan, schools will be encouraged to innovate.

they'll be able to manage their budgets at the school level, set their own schedules, try creative approaches to curriculum and instruction. for example, we can see schools tried year-round schedule with a science-based theme that runs through the curriculum. and we must address low performing schools and reduce dropout rates. we can do it by empowering parents and districts and encouraging programs like the jobs for maine graduate program that we know are affected and keeping kids in school and preparing them for a career of college. it's not enough to have good schools if too many of our kids don't go to them. and will also adopt national standards for performance. maine already has rigorous standards, but because most states use different ones, comparisons are difficult. so by adopting core national benchmarks, will be able to better understand the places where maine excels in the areas where we need more work. and if you look around the world it