our challenge is big in our time is short. it's time for all of us to have a serious conversation about the importance of building new infrastructures that our businesses and their employees need we're even in these hard times. connecting washington recommended eminem whom 21 billion-dollar investment in the vital economic corridors. these projects and more to demand serious attention. the columbia river crossing. the north and south korea or.

route 67 between the 40-mile corridor and the new car ferry and the joint base record. consider this. the old and failing columbia river crossing supports $40 billion in commerce a year and 130,000 jobs in the warehouses and distribution centers there is a fourth of vancouver and portland alone, yes the bridge was built on in 1917. it was built to accommodate horse and buggy and it is still the last stop light on i5. or consider this the pass is the only direct route for products flowing from eastern washington

forms to our stand ports and for the product flowing from coast ports to eastern washington and beyond. that's a $80 billion going through that critical crestor every year. our record of success for the transportation project is strong. from the 2005 voters approved gas tax we are close to completing all 421 statewide project. 88% have been completed early or on time, 90% on or under budget. that is real accountability. and we can do it again. educate ourselves, educate the public, and then the bills that better transportation system than the other guy. [applause] people often ask me if we can

come back from this great recession. i tell them we cannon, we will, we are. our ports and good paying jobs are booming. the international trade is surging with year-over-year exports of over 30 per cent and the biggest export after transportation as agriculture. new free trade agreement with south korea, panama and colombia will open new markets for washington. our exciting global health and life science sectors are spreading not only the beyond the sound tri-cities and vancouver, they are spreading around the globe. our software and i.t. industries are thriving including a double digit job and microsoft last quarter and 8% jump in software jobs. and how about the backbone of our manufacturing sector aerospace with its 660 companies

in washington. 2011 was a historical year. one of washington's signature industries, and it to give alleged to have it happen. it started last february going wants to 35 billion-dollar contract to build a new generation of 200 air force refueling tankers and all of us labor, management, democrats work together with its 11,000 jobs. [applause] in september the first boeing 787, the game changing composite airplane, 20% more fuel efficient and as high-tech as they come delivered to all airways. the 787 is the future and it's

built right here in washington state. [applause] in december the boeing company and the machinists agreed to the historical five-year contract assuring the 737 max will be built here with a projected 20,000 jobs and $500 million in tax revenues and that was why the largest order ever, 280 airplanes all of them 737 or the max. we are winning in the german aerospace industry in washington state. [applause] but for us for state government what we saw in 2011 reminds us when the economy comes out of this term we must already be down the track while our

competition hangs back. it's our turn to win in the term and it is our responsibility. i would ask you to pass the budget. send a revenue proposal to voters. reform education and invest in our transportation infrastructure to create jobs now and into the future. that is a bold agenda and it involves risk and courage. but i have one more very important request. this is about our values. washington has always fought discrimination. it is time for marriage equality. [applause]

[applause] let's tell the children of our same-sex couples that their parents' relationship is equal to all others in the state. let's pass a marriage equal the bill in the great state of washington. [applause] ladies and gentlemen, as you labour in the next 60 days, i respectfully ask you to take a minute each day to stop and

reflect. take time to look back and see how we came to be the great state that we are. to time to understand and appreciate what our courageous and visionary parents and grandparents did for us. but governors and legislators and voters did for us when it was their time to act and remember this is our time it is our time to give our children what we were given, a good education. our time to modernize transportation to put people to work and make sure they have jobs in the future. our time to leave no one behind and our time to protect our community. the future of our state is in our hands now. we have to do what is very hard, but do it we must. and together. show people that in washington we work together, democrats, republicans and independents and

let history reflect we took the risk that we were courageous, we were determined, and we were bold. let's win in the term and be an even greater state to our children and grandchildren. thank you. god bless you and god bless the great state of washington. [applause] [applause]

idaho governor called for $45 million in tax cuts and a one time pay raise for state workers and teachers. the term republican governor delivered his remarks at the start of the 2012 legislative session from the state capital in boise. this is 40 minutes. [applause] thank you. thank you. [applause] [applause]

[applause] mr. speaker, mr. president. the governor on behalf of the joint session we welcome you to the house of chambers and look forward to your address and look forward to working with you this session. the house and senate both agreed this will be very short session. [laughter] sounds promising already. the podium is yours. thank you. mr. president, mr. speaker,

honorable justice, my fellow constitutional officers, distinguished legislators, special guests in my cabinet as well as my friends and my family and my first lady. [applause] my fellow idahoans i'm here to report on the view of our state and to provide you with recommendations to this coming year it is idaho has been tested by this great recession. now emerging, lean, strong her, more resilient and better prepared to compete prosper in prevail in the years.

thank you. thank you for your leadership and your partnership in guiding idaho through the time the people we serve and thank you for your virtues in staying true to our idaho values to be i am also proud and humble to report to you today successful in the honorable homecoming men and women in the national guard on hundred 60 combat team. [applause] [applause]

we also recently welcomed home about 100 idahoans who were deployed to iraq with the army's 300 company. but it is also my solemn duty to report that two of our courageous from the 115 lost their lives defending freedom during 2011 in a country half a world away. i ask that you remember and speech debate could teach the specialist nicholas and their loved one in your prayers and thoughts as we begin our work. along with staff sergeant jason who was wounded and received the purple heart, they were among the more than 1500 idaho members of the 116 who put their lives on line for us and they were not alone. specialist robert at the first

infantry division and the 82nd airborne and corporal ryan shore of the infantry division each gave a measure of devotion in the defense of liberty during 2011. they were our sons, our fathers, our brothers, our teachers, our students and friends. they will be sorely missed. now that most of our soldiers are home and once again helping make idaho the best place in the world to live and raise a family unfortunately that isn't true of hanly who remains in captivity of the taliban supported terrorist network in afghanistan. i know you will join me in continuing to pray for his safe return home. [applause]

among those troops who have returned home grateful for their freedom far too many did so without a job. that will change. it must change. i believe that we can all agree that these men and women have faced too much hardship fighting abroad for us to ask to face more hardship home. i'm pleased to report the department of labor and of the veterans services the department of commerce, the department of education and all the agencies are joined in the task of addressing that challenge. ladies and gentlemen, to hire one is more than the right thing to do. it is our responsibility to ensure that our troops have the tools that they need to resume their productive lives as civilians. [applause]

so i would encourage you and all idahoans to help however you can to make good on a shared commitment of those who safeguard our country's future. their fight is our fight. their success will be our success. i cannot put it any plainer than that. those veterans and our children are gephardt of the idaho that i want to see. i want to see in idaho that is more independent and dynamic, the first. built on a foundation of freedom and personal responsibility and public accountability. i want to see idaho focus model scarcity or what we lacked but more on prosperous future it is with that idaho in mind i set my budget top priorities for the

2012 legislative session. in the the reality is those priorities are inseparable. jobs and education. almost everything we do this year when pact on those two priorities which i'm confident that you share. let's talk first about the philosophy that underpins those priorities. the philosophy that has seen us through one of the worst economic downturns in american history. about 14 months ago, you and i were elected to idaho with understanding that we would make economic growth in the creation of more career opportunities the centerpiece of our state government agenda. the interest of us to deliver and to bring to them a more efficient and effective smaller state government and to protect idaho's hard-working taxpayers. our citizens express strong support for our emphasis on government doing more with less

as they have had to do. and our steadfast focus on living with in the people's means they embraced our ideas and encourage our efforts and we committed along with each of us to putting the politics of the past in the past and they endorsed our federal programs and policies aimed at imposing a greater burden on taxpayers with a regulatory roadblocks and imposing topped on mandates and creating one-size-fits-all government solutions to the challenge. the things to your leadership and understanding of our constituents needs i believe only a citizen legislature can possess the result is we have a state government that is not safe and will not face a staggering deficits, layoffs, shutdowns, tax increases and other problems that are facing other states.

[applause] keeping our heads above water in difficult times isn't good enough. not for us and not for the people of idaho. we are not here to just get by. we are here to help and enable the people that we serve to get ahead. when first elected as governor we were to encourage economic opportunity, ensure responsible government and in power idaho citizens to be the architect of their own destiny. those remain the foundation of my approach to this job but circumstances have converged to raising stakes. you will continue to see my administration focused on the reestablishing the proper role of state government in our lives, and you will see and will

continue to see our extraordinary idaho independence and self-reliance assert itself in response to federal intrusions on our sovereignty [applause] you will also see a greater emphasis on sharing the efficiency and the prudently devotee that was a established in every state agency of the government during the past three years. there will become standard procedure. what we have had to do will become our new normal going forward and you'll see a greater emphasis on building innovative public and private partnerships that leverage our resources to advancing and achieving our shared goals and that is especially true when it comes to fulfilling the benchmarks of the budget and putting more of our 65,000 unemployed idahoans back

to work and preparing our citizens to build more of the 18,500 jobs that remain vacant in idaho. that isn't just jobs but wishful thinking. we are taking concrete steps to address the fact that employment growth the lagging economic indicator has been lagging far too long. unemployment is slowly starting to decline. we have seen some good news in the recent months with our jobless percentage that is so great in two years. but unemployment remains the unacceptable level with the government can do is limit as it should be we can and should do a better job of reaching out to our businesses and employers in this effort and not project 60 at the top have taken over as the department of commerce. he brings with him a wealth of

private sector experience as well as renewed interest, enthusiasm to engaging in people who make our economy and our communities work and it's already making a difference. jeff is joined by roger madsen of the department of labour. bill at the department of insurance. ryan maseth, department of transportation, susan gold at the department of the agriculture, gavin at the department of finance, our colleges and universities and others to provide employers, job-seekers and businesses looking to grow with the tools they need to succeed. jeff and roger in particular are already working closely with the local economic develop and professionals allover idaho. their job is ensuring that we are prepared to to get in touch of economic opportunities and create even more with a well trained and motivated work

force. targeted investments and government red tape. [applause] they understand the role of government, effective government is not to create but rather to facilitate opportunities. is that the right path forward? asked the people who will be working in the plant. in fact ask anyone benefitting from the incredible economic growth and the increasing business diversity being made possible by the success of the idaho industry. ask the hundreds of idaho citizens who are paying taxes in the growth for the new policy of regional customer service center

after the supporting business is benefiting from the growth of the ground force manufacturing in the false or the new underground expansion or any of the health science research and technology businesses choosing to expand into the core. other great idaho companies like boise and dynamic and eagle also have the potential to substantially change landscape. those examples and many more are tangible results of idaho's entrepreneur stepping up and expressing confidence in our future and the key to their willingness to stick their future, idaho is the degree to which we make a commitment to being part person of progress. partnership is a key to the new

programs you'll be hearing about in the weeks and months to come. it's called simply igem,. it's seen in utah and virginia a similar concept is now being applied in colorado and industry increasingly rubbing its arms around the idea. we are not reinventing the wheel here. in fact aware our agricultural industry has had similar programs in place for years. we are just protecting it for our universities and more of a were idaho business. igem involves on japan or some higher education, the national laboratory, and the center for advanced energy studies. together to focus will be on creating the new value on our campus that will number one, help existing businesses grow as well as nurturing the start of the new businesses and create

new jobs and opportunities for idaho to read that will require a genuine commitment on some targeted investments and perhaps most importantly a significant cultural change as our universities have approached research and working with the industry's. i appreciate our university. [applause] and also the state board of education for partnering with us in that process. i urge you to act decisively in support of the legislative efforts that igem will require that includes collaborative research aimed at job creation. public schools throughout idaho are also undergoing a cultural and technological change as we continue implementing the

students reforms that you all passed and approved last year. i am committed along with the superintendent to ensure the success of the reforms and that's why my budget calls for the full funding of students come first including its technology and pay for performance elements. the modest, the targeted responsible general funding increase on the proposing public schools is a right path forward. will help our limited taxpayer resources go further and make our k-12 education system more effective and customer driven. most importantly, founding students come first will help insure the success of our idaho students in the increasingly complex, competitive global markets. [applause]

repairing idaho students for a wide world and for reaching their greatest potential here at home is a constitutional responsibility for the state government. like supporting our veterans it happens to be the right thing to do for our families, for our communities and for our future. when it comes to education we cannot rely on the policy of the past to prepare our children for the possibility of the future. [applause] that's why i'm additionally proposing to fully fund the cost of enrollment growth going forward at our universities and colleges and community colleges and it's in my recommendation that we fully fund the cost of moving into and operating the facilities on all of those campuses. [applause]

and that we will be addressing the top priorities identified with the president has those institutions. i'd like to say a few words about our community colleges. specifically i want to mention an extraordinary example of collaboration between north idaho college from the college of southern idaho and the college of western idaho. as you know, there is now and has been a pressing need for the work force training. in fact it is close growth in demand here in the treasury rally prompted the board chairs at nicoe and psi to defer their share of $1 million in proposed funding for fiscal year 2013. they said they would rather see the extra money in the college of idaho, sorry, the college of

western idaho. which as you know is one of the fastest growing community colleges in the nation. with gratitude for appreciating the foresight and offering that and my budget recommendation. [applause] ladies and gentlemen, superintendent luna and i were there a few weeks ago to mark the statewide completion of the idaho education network. 194 high schools now are connected to the idaho education network. almost a year ahead of schedule and 16% of the budget. [applause]

in st. mary's principal john and superintendent joseph have been champions of using technology and distance learning to improve and expand student achievement. the culture at st. mary's is the case as so many of the schools throughout idaho has been one aimed at enhancing student achievement through a variety of options despite their remote and rural nature of your working with north idaho college and those in park state college and other curriculum providers demonstrate the possibilities are limitless with a no open mind and there are plenty of those throughout idaho. for the chance to expand the horizon as our student comes first efforts state government must be prepared for the

challenges ahead. their understanding of the needs to work with us while preparing for the worst gave us the ability to draw down more than $381 million from our various accounts over the past four budget years. those funds were essentials in helping idaho run into the tough economic hard times without anything like the dislocation of the draconian measures that other states were forced to take. that money helped us keep our credit rating - and debt level low. it helps keep our taxes in check and i is on the emergence of this extended downturn with the balanced sound budget and we all know that if the requisite for the group and the renewed prosperity that we need that is exactly what we need. that's why the budget i am submitting to proposed to begin refilling their reserve accounts in preparation for the next

unforeseen rainy day. my executive budget calls for setting aside a total $60 million into the public education stabilization fund, the public -- the budget stabilization fund and the new higher education stabilization fund. it will help us maintain stability and certainty and responsibility that idahoans desert and employers look for in their state governor. and that is what idaho citizens will keep getting under my administration and we need your help to continue the support. bye contrast -- [applause] bye contrast that's not what the american people are getting from washington, d.c.. despite the hard work of our fine congressional delegation, idaho's brightest spot on the level in 2011 was doing what the

courts refused to do. congressman mike simpson deserves our praise and thanks for his successful legislation restoring the state management to idaho. [applause] now it helps that mike was a former speaker of the house. with that experience and his growing influence in congress he knows what it takes to get things done that reflect the priorities and the needs of the people at home. i am proud that we are represented in washington, d.c. by the legislators who serve with distinction in this very building. on the other end of the spectrum as you know the administration, the obama administration and their so-called patient protection global health care act mandated is published men's

of the health insurance exchange and each of the states. i'm the first to admit that i struggled with that federal position of this mandate in part because idaho was already exploring its own way to create a market based insurance exchange long before the federal read about its wall. still, last september i allowed state agencies to allow etd to apply for a grant to the federal law while we continued to fight in court. my decision to allow the applications to be submitted simply preserves the opportunity for you and all idahoans to discuss our options and decide what is best for idaho and our state and city to be the next few weeks, we will continue to have those discussions we now all of our options and the potential outcomes associated with each. it's also important to remember those discussions will be taking place in the context of the u.s.

supreme court agreeing to consider the lawsuit that idaho in 25 other states in idaho for the people to choose. [applause] my goal is to collaborate with you today on a principled have forward so that we are prepared for the health care environment we will have tomorrow. i look forward to hearing from each of you and form the people of idaho, the people that we serve about the state's role in insuring that environment makes health care or accessible and affordable for all of idaho. of course health care is only one of the challenges that lie ahead. we have little control over the world and the national economy but we can ensure that economic

opportunity finds a welcoming home here in idaho. ladies and gentlemen, that's why i'm proposing that we set aside $45 million of tax relief in fiscal 2013. i've been discussing the form of tax relief for some time now with legislative leadership, tax experts and citizens. there remains a wide variety of how best to target tax relief. there are plenty of ideas to crunch the numbers but there's also a broad consensus on the need to reduce the burden on both the tax payers and all those employers who are working and looking for opportunities to grow while the economy is creating new livelihood opportunities. i look forward to hearing from your proposals and working with you on irresponsible and forward looking ways to get more of our

taxpayers' money with our communities and people. [applause] we are not tasked with addressing the national administration consequences of its inaction or misplaced priorities. but what we can do is to set an example, the best example of possible of prudent responsible responses and detective state governments. and we can do this if we nurture and celebrate our private sector success. we can encourage and collaborate permission while protecting individual freedom. we can foster and remove impediments opportunity and seek to more equitably reword the most valued state employees for

continuing in public service. to that and i am proposing that we set aside $41 million in the general fund in fiscal year 2013 to reward our most deserving employees including our public school teachers. but that reward should be structured in such a way that it gives management as much flexibility as possible. it should be in the form of onetime payments and should be conditioned on tax revenues meeting our projection. before i go on i want to take just a moment to recognize and offer my personal thanks for a long time public service who has been a mentor and leader and a dear friend the generations of idaho. general darryl manning who is one of the most primitive and conscientious and common sense people that i've ever had the privilege of knowing and working with. he served in both of the legislatures he was idaho's first transportation director

and has been a valued adviser of governors and legislators for decades. the recent decision to retire as the chairman of the transportation ward leaves the backing of knowledge and experience and institutional amendments the would be difficult to fill. i'm proud to have served by his side and pleased to know he will continue to answer my call for his of vice and council. [applause] general lanning. [applause]

with general lanning's support, i would also want to announce today that the transportation board member in jerry blight has agreed to take over as the chairman effective in february. i know you'll join me in welcoming daryl b lund shannon. [applause] i ask you to pledge support to jerry and the transportation board and to brian as they work as a team to develop plans and priorities from central part of the economic infrastructure. it's been the team concept that has enabled us to define our state government process in the past few years. we've made them more transparent , responsive and stable. most importantly, we've become

better stewards in the taxpayers' money and that has served to strengthen the foundation on which public confidence is built. that is what being in laboratory of the republic would mean and it is what idaho is perfectly suited to contribute to the national discussion. speaking of teams last summer my staff and i visited with a football coach chris peterson. we asked the coach how he has been able to keep upgrading the success on the field. we asked how he and been able to build a reputation for influence with what is considered limited resources by today's college football standards. what we and i took away from his answer was this, focus. focus on the challenge at hand. focused on leveraging your strength, for improving every day and focus on what you can control and finally focus on

helping individual players understand how they can help achieve the team goals while reaching their own academic potential. that is a pretty good formula for success. it is high standard but one which i know everybody here would agree to today. and commit to for achieving the best we can for our people. keeping pace with the idaho way of life that we inherited and in which we want to pass on demands nothing less. that way of life is characterized by our idaho values including our independence and spiritual strength of our strong belief and determination and enduring love of liberty. those values in turn are driven by feith in the broad american idea that we as individuals have both the ability and the responsibility to make our

future better than our past. the response of the leak we share is to ensure that every individual has the opportunity to realize that goal. to do that, we must be united to overcome the common challenges. we must be consistent in nurturing success and most of all we must be resolute in protecting our citizens in the effort. ladies and gentlemen, let me close today by expressing my sincere gratitude to you for agreeing to be part of this process. thomas jefferson wrote in each team 01 that the expression to the importance of the integrity to the working of government and he wrote, quote of the various executive students, no one excites more anxious concern than that of the interest of our fellow citizens in the hands of

honest men with the understanding sufficient for their station and i would add my friends, you have to enjoy that perspective and you have the love of the state of idaho more, far more than is needed sufficient for your station and for more than is needed for the sufficient challenging times in which we live. my thanks to you, god speed. let's go to work. [applause] thank you.

[applause] just a little more. i would like to have a little more darryl had. [laughter] >> thank you, governor. we look forward to working with you during the next recession and continuing the discussions and working towards the goal that you have. would the committee come forward to escort the chamber.

[inaudible conversations] [applause] mr. speaker, the president of the united states. tuesday night president obama delivers his state of the union address.

live coverage at 8 p.m. eastern including the president's speech. republican response by indiana governor mitch daniels and your phone calls. live on c-span and c-span radio. on c-span2 watch the president's speech along with members of congress and after the address more reaction from the house members and senators. throughout the night go online for life in you and to add your comments using facebook and twitter on c-span.org. in her annual state of the state address on wednesday, south carolina governor nikki haley talked about the economy and job efforts. other topics included a government spending cap, mental health programs and charterr sc. schools.is is 45 this is 45 minutes. [applause]

thank you. thank you very much for that wonderful welcome. mr. speaker, mr. president, ladies and gentlemen of the assembly, constitutional officers and my fellow south carolinian is.ians. this ha and every year will continue the tradition thathe ta recognizes the surgeon truthain that nothing said in this chamber tonight or done in the chamber tomorrow would be possible this chamber tomorrow would be possible without the commitment and sacrifice of the men in women in uniform who bravely serve our state and nation. the hardest part of my job is to cause i'd make to the families of our fallen heroes. but each time i put down the phone, i am touched and amazed by the strength, grace and the pride with which these brave survivors handled their tremendous sacrifice of their loved ones.

so now, please join me as we pay tribute to those who gave the last full measure of devotion on the service that there's date and country this past year. senior airman, nicholas jay alden. sergeant first class, how then a foot right. staff sergeant, thomas jay dudley. sergeant beauchamp the evidence. private first class, kayla and c. l. johnson. sergeant first class, jonathan mccain. gunnery sergeant, ralph earl junior. >> private first class, desiree presley. master public safety officer, edward scott richardson. sergeant randy sharp. chief warrant officer. sergeant first class, and any

bitnet junior. private first class, just in time but whitmire. [applause] we will never forget. where teacher at it people, south carolinians. we love our state of another country. we love our men and women who put on that uniform to keep it safe. they are our parents and children, husbands and wives, our mother is from our fathers

are siblings, our friends. we are honored to have witnessed the parents of one of his heroes, lance corporal william kyl carpenter from gilbert, who was in afghanistan and is continuing his recovery at walter reid. the prayers of south carolina continue to be with kyl and all of our wounded veterans. mr. and mrs. jim carpenter, thank you for being here. please stand. [applause] tonight there are 766 families across the state with loved ones in the south carolina army and air national guard who are serving overseas far from their

home. our family shares a special bond with the military families of south carolina, like them, we know the pride of watching our loved ones wear the uniform of the strongest, proudest nation in the world, loving his job. please join me in welcoming my head spin and not scare the south carolina national guard and the coolest first man ever, michael haley. [applause] i have often said and i firmly believe that if i am a good wife and a good mother, i will be a good governor. the greatest lesson of my life is being amounted to little ones, a daughter who is to dance, and a son who wants to be the next lebron. please let me thank my two little ones who keep me humble everyday and reminded that no matter whatever is happening in

the world, the most important title i will always have his mom. rena and nalin, stand up and give everybody a big wave. [applause] i have great love and great respect for our state motto, "dum spiro spero," meaning, while i breathe, i hope. we adopted it in 1776 but safely at interpret the nation each of us is blessed to call home. it describes south carolinians then, tough, brazilians, ever optimistic and i discovered now. the people i call her friends and neighbors, the people who are known around the world to south carolinians cherish our faith, families and the values they instill in us. it was all with hard work and our great hope lies in starting a better tomorrow for children and our children's children. ladies and gentlemen, while i

breathe, i hope and it is with great faith in those words, the words chosen by our forefathers that ict tonight that the state of our state is surging. when this administration came into office over a year ago, with unemployment in double digits and growing, our focus is on the singular, jobs. the reason is fairly simple. if you get a person a job, take care of a family. and we have a lot of families to take turbaned south carolina. the good news is your name my pledge to each evening before me tonight and more importantly to have for the 4.6 million south carolina and outside of this fault is that i will not rest until we create a climate in which every citizen of this state who wants a job has a job. [applause]

we have grown and expanded our south carolina family atmosphere, welcoming some wonderful new partners. and after all is said and done, due to the time, cooperation throughout branches in all levels of government they can and should be spread eons the economic development arena, we were able to celebrate $5 million of investment in south carolina and the recruitment of almost 20,000 new jobs in our great state. [applause] in a few moments, i'm going to recognize a number of this new partners are michael and i have invited here tonight is our special guest. but before doing so, i want to focus a little on the cooperation mentioned earlier, i what it looks like and what it is that first day. we all remember the excitement that swept across south carolina back in the fall of 2009 samoan

boeing chose north charleston as the location to build a new line of 78070 miners. we remember what a thousand initial jobs meant for people of our state and we remember it is to live to our economy and spirit that we needed. we remember the promise and thousands of future aerospace jobs both inside and out of the boeing plant and what those jobs will do for the next generation of south carolinians. it was the greatest economic development success the palmetto state has celebrated in almost two decades in the people of our state wrapped her arms around the newest member of the south carolina family. part of the reason our enthusiasm is that boeing knew no bounds. we've seen how they operated in washington state. they took care of those who took care of them. while they were creating a thousand jobs here, here expanded 2001 washington state. not a single boeing worker was hurt by their decisions. in fact, just the opposite. a commitment from boeing to

estate to a community, to work for us is a real commitment, a proven commitment and we know the face of south carolina, would forever be changed. then this spring, the national labor relations board reared its head, suing boeing and what will surely be remembered as one of the most fundamentally un-american decisions ever handed down by the federal government. in south carolina would not stand for it. from every corner of our state, we protect our federal delegation coming business leaders and most importantly, the citizens of south carolina. and boeing stood tall under tremendous pressure from the president in his union allies, this great american company said no, we did nothing wrong and we refuse to cave. and late last year the nlrb back down and dropped his frivolous lawsuit. please take a moment to join me in expressing our gratitude to a

great american and yes, a great south korean as he now has a home in the low country, judge michael looted, executive vice president and general counsel for the boeing co. and tremendous room to the state of south carola. .. [applause] i'll run through the story that many of us already know because their number of important lessons that lie within. first is the lesson i want to make clear to the business community, both in and out of our state. when you are here you're family. no one will fight harder for you. no one will do to keep you competitive in this state and the people of south carolina. the lesson must be that if you are picking a fight with south carolina he better be prepared

for one because of carolinians take him back home. and third come the lesson i hope you take away from this episode is together speaking with one person driving towards a clear and focused goal there is nothing that south carolina cannot accomplish. [applause] the sheer size of investment and the raw number of jobs we've seen come away this year during a time when state and nations are struggling economically in ways that the world has rarely seen is a testament to the truth of that idea. coming into office a year ago, secretary bobby hitt down in economic committee was

fractured. the job recruitment is but very nature a new sport. you don't just sell a stay. you sell a state, a county, community and way of life. they say all politics is local. that is twice as true for economic development and the team effort has worked. we have so much to be excited about. and not just in the traditional economic hotbeds like charleston, orangeburg and union and denmark. please help me celebrate some of the great announcements we have had over the years. every south carolinians should be proud of the fact that, while the places in the world, these companies could have picked, they elected to make our home their home. when i call your name, please stand and be recognized. representing continental tire, in sumter, geoge jurch. [applause]

you may want to hold your applause until they are standing. we've got a list. representing td bank, in greenville and lexington, david lominack. representing bridgestone americas, in graniteville, steve brooks. representing nephron pharmaceuticals in west columbia, lou and bill kennedy. representing bmw manufacturing in greer, who just produced the 2 millionth car and announced the new bmw exporter, mac >> off. representing otis elevator, in florence, torsha hick. representing 73. representing 73. representing innovative composites and orangeburg, rubens roque. representing mark blitzer and dave brown. representing some six gkn aerospace, in orangeburg, kevin cummings.

representing tighitco, in north charleston, jeff winkler. representing gestamp south caroline, in union, john craig. please stand and give all of these fronts a great south carolina round of applause. [applause] [applause] would have another great reason to celebrate south carolina. from the tidal creeks that buford to the shores of lake keowee, south carolina's bus of the natural beauty who makes a family of the nation. and this was the first year we finally beat san francisco. charleston was named the number one top tourist nation and

america. featuring me in congratulating mayor joe riley, who unfortunately couldn't be with us tonight and the people of charleston. [applause] but we can't lie on god's gift to loan to keep our tourism industry the second-largest in this state turning. we have to self south carolina and there is no better opportunity, no better showcase for our state and our citizens than a heritage golf tournament. for a generation, the heritage has been backed by longtime corporate sponsor. it was a shock to her system that we lost their support, but that shot did not justify the knee-jerk response from some in our government. it is not now, nor will it ever be the responsibility of the taxpayers of south carolina to find a ball tournament. instead, it is the responsibility of leaders of our state to do the work necessary.

sometimes hard, sometimes less than glamorous to preserve the events that we value the pump dollars into our economy and energy into a community. on the hard work of many, duane parrish in particular and a host of stakeholders paid off. the nation will again watch the best in the world what on the 18th fairway at harbour town, albright said utf-8 setting of the state and graciousness of our people. south carolina has a new partner, a great friend. so please help me thank and welcome the title sponsor of the heritage golf tournament, rbc represented tonight by james tricolli. [applause] would also be remiss if we didn't think once again, boeing and the local presenting sponsor

of the new rbc heritage. thank you. but we have made great progress, there is more work to do. we will continue to sell our great state each and every day to fight for the jobs are people made and the financial security they deserve. in order to better do that, we in this remake to focus on legislation that is pro-business and helps us create a more competitive environment. i have long said is a wonderful when recruiting companies to south carolina, but when one of our own expands, that is in the real celebration begins. we have to take care of the businesses we are in the house. and when they can grow and invest back in their people, their product in their state, we are doing something right. as we talk with ceos from around the world, their focus is clear. keep the cost of doing business flow. our agencies have taken strides

to reduce regulation and to change the culture so that every single employee understands that if government is costing our business time, we are costing them money and that is unacceptable. speaking of lost time and money, i want to thank speaker bobby harrell and senator larry martin for leading the charge on tort reform last year. until 2011, south carolina was the only state in the southeast that did not cap damages from lawsuits. thanks to the people in this room, that is no longer the case. that was a huge first. my ask of you today is to remember there is always more to be done on tort reform. looking at the states we compete with, that tennessee's, alabama, virginia would be naïve to think that there would be settled for playing second fiddle to south carolina and economic arms race. they will scrap for jobs every bit as hard as we will and the greater the protection we give our people and businesses from

frivolous lawsuits, the better position we will be to capitalize on other assets. the next step toward reform is a pay system, so there is a real cost of wasted time and money by businesses and none of our courts and that her companies understand south carolina won't stand for trial lawyers claim games with their bottom line. [applause] we also need to strengthen our workforce. it is critical on two levels. first, the ability of our state to prevent a company with the workers it needs to quickly move products is a huge component to getting them here in the first place. if they cannot find workers here, they will go somewhere else. specint and just as important, we want these jobs going to our people. 20,000 new jobs coming to a state is a lot more exciting when it means that 20,000 more self airline workers will be

locking out the door each morning with their head held high, with a sense of purpose and pride able to care for themselves and for their families. the tools for an effective job training program are to exist. we just need to do a better job of putting together the puzzle. our technical colleges and vocational rehab programs are as good as any in the country. it has proven time and time again it can deliver the time we need swiftly. it is our responsibility to ensure that the left hand is talking to the right, that we are wasteful and that every dollar directed to workforce training is actually spent on training our workforce. before the month is over, you'll see us unveil a restructuring of our workforce training program. under the direction of general abe turner and a partnership with one of the most respected and effective private sector companies in america, we look at our community is ready and put south carolina back to work.

finally, i love that we are one of the least united states in the country. it is an economic development tool like no other. our companies and south carolina understand they are only as good as those who work for them and they take care of their employees. the people of south carolina have a strong worth ethic. they value loyalty and take tremendous pride in the quality of their work. we don't have unions in south carolina because we don't need unions and south carolina. [applause] however, as we saw with the assault from the nlrb coming unions don't understand math. they will do everything they can to invade our state and drive a wedge between workers and employers. we can't have that. unions thrive in the dark.

secrecy is their greatest ally. some might, their most potent adversary. we can only do do more to protect south carolina businesses by shining that light on every action the union state. with the help and support of chairman bill sandifer and catherine templeton, we will create a competitive playing field to the companies that choose to call her stay at home. we will require unions to tell the people of south carolina how much money they are making on our backs, with politicians they are funding and how much they pay themselves. we will protect the right of every private and public citizen to refuse to join it by executive order will make it clear that our state will not subsidize striking workers are paid employment benefits. we will make the unions understand full well they are not needed, not wanted and not welcome in the state of south carolina. [applause]

all of the strong pro-business policies we have put into place won't matter, however, if we do not keep our fiscal house in order. during the past several years, agencies have faced financial challenges and used fund balances and flexibility to shift money between accounts to cover expenses like rent and pay road, with revenues increasing, state government needs to stop these nontransparent accounting practices. it is time for truth in budgeting. [applause] in my executive budget, we've funded agency operations with recurring fund so that taxpayers can see how much and where money is spent. no more agency shelving, nomar went time lending for multiyear expenses. much of the so-called growth in this budget is not gross at all,

but simply as being honest about how much it cost to operate state government. to permanently control spending, our government can and must function within a spending cap. as you've heard me say time and time again, and a general fund above and beyond that cat must go towards tax relief, debt relief or reserve fund. we cannot continue to spend every dollar we have. it is bad policy and our homes and businesses, which i think we can all agree to have a know it is bad policy and state government. it has to end. clap back that friedman, the famed economist once said, one of the great mistakes is to judge policies and programs by their intentions, rather than results. we agree. in order to stay within the spending cap and deal with massive expansion shoe federate

mandated programs like medicaid, we'd have to make unpopular decisions. we've also try to restore some of the programs and agencies that do pass the test, that to fulfill or functions of government. the protection of our citizens and communities allow for us to have the quality of life we enjoy in our state, which is why last week our budget strengthen south carolina not force the division. we have restored funding to a dna lab so they can clear the backlog. we've increased the number of sled agents, equipment and technology budget and we brought james mark home where he belongs so sled can return quickly to his mission, serving the chairs and chief across south airliner. [applause]

we have also bolstered mental health, recognizing that feeling to provide basic care to those who suffer from mental illness will cost us more money in the long run. both in dollars and human costs. these are people who have treated campbell is safe and productive lives. if left untreated, they often end up in one wanted one of two places. our emergency rooms for our jails. finally, every child in south carolina learns differently. some more so than others. it is our responsibility as the leadership of the state to embrace that reality, not fight it and give all of our children the chance to learn, to grow and to thrive. so the times make real investment in our charter schools has come. our budget does just that. charters are innovators. we need those fresh insights and ideas to help improve the educational system for all of south carolina's children. yes, we cannot and will cut

spending in the state of south carolina, but we must be smart about it. the time of across-the-board cuts is over. the executive budget also outlines a number of policy initiatives that will continue to move south carolina forward and make us more competitive and importantly. tax reform is critical to our state. every conversation we have the ceos at some point thrissur attack structure and we've been communicating with representative tommy stringer and his tax reform committee and how move forward with real changes this year. our budget includes almost $140 million in tax cuts for the people and businesses a south carolina. these cuts will flatten the individual income taxed and six brackets to three, reduce taxes for citizens of our state by almost $80 million in phase out the corporate income tax over a four-year period. injecting much-needed dollars back into our businesses and giving us an illegal economic

development tool. the tax relief we ultimately adapt must be brought based, offering relief to as many south carolinians as possible. these tax cuts should mean lower rates, not more credit exceptions and loopholes that only benefit is chosen few. what we have laid out in the budget is a blueprint for how we believe the dollars available for tax reductions can best be spent. together i believe we can agree to a set of tax katzen make south carolina more competitive and son were dollars back with able on, in the pockets of the people and businesses of our state. [applause] the executive budget also presents a plan to give local school districts more control over school buses. there is absolutely no reason for south carolina to remain the only state in the nation that runs. it is cumbersome, wasteful and

preventer department of education for from focusing at persuading it to be, and educating the next generation of south carolinians. under the new system come individual school districts will be given the opportunity to decide whether to operate, choose a private operation or develop a hybrid solution. the goal here is to give districts as much flexibility as possible as every district is made up with different students with different needs. we are not interested in mandating best choices. what we are interested in is giving them options and getting the state of south carolina out of the school bus maintenance business. i know many in this chamber are concerned about the situation with our ports. the concerns are valid because our ports are vital. let me start by assuring you that no one will work harder to get the funding necessary to do deep in the port of charleston,

starting with creation of a port infrastructure fund in this years budget. florida south carolina advantage in recruiting industry is supported charlestown and is a huge part of why companies like redstone, continental and michelin come to and expand in our state. from the first day of our administration, i work at their federal delegation delegation to clear way of the impediments to make in charleston the premier port in the southeast, starting with getting the port to the post panamax steps of 50 feet. there's been much discussion about the decision on whether to viable ports in the region are good or bad for the economy of south carolina businesses in our state. i have said it before. i will say it again. i am not afraid of the 43rd georgia port 36 miles at the savanna river, confined to one-way traffic. you should not be either. let's quit bickering and worked together to stay charleston return to its greatness. jasper to have a future in

georgetown to have a purpose. finally, the executive budget calls for an abolition of the way we fund higher education. our intention is twofold. we were the schools that will serve our students while providing real motivation for those that need to improve. i was a legislature. i remember the pressure that comes through the budget. i also know that they are needs to be a better more consistent way to fund higher education and went a son. and accountability, not what school is the most popular. by adopting a new accountability base funding formula for higher education, we all win. the schools get stability and flexibility. legislators will no longer be faced with the demanding dollar after dollar and above all, south carolina's parents and students will know that their education is fairly and appropriately funded. when this administration took off, were facing massive debts.

corrections, social services and health and human services. i told she died that datasets are unacceptable in the healey administration. and tonight, i am proud to say that not one cabinet agency is running a deficit of even a single dollar. [applause] i'd like to request that the best cabinet a government could ever ask for. please stand and be recognized. [applause] the largest of those deficits as hhs, the scenario of $228 million. in response, ask you to release

the handcuffs off the department said they can truly manager medicaid program. under the leadership of senator harvey peeler come you didn't do that i thank you. since then, hhs hasn't aggressively to find problems. today is avoiding the massive service and reimbursement patent others experience. this past week we announced -- enhanced fraud prevention and quality controls to reduce eligibility and payment errors found in audit said the agency agencies were under previous administrations. the way to provide other help to our citizens was not just massively expanding a broken system by giving of our money. medicaid is that broken system. there is too much ways, too much fraud and too little focus on prevention and personal responsibility. almost all of those problems are caused by mandates of the

federal government. but here in south carolina, under the leadership of your nerve tony kaye, we are not just the symptoms. health care providers are now working in partnership with us to improve quality and lower costs. we identify payment reforms and align incentives between health care providers, payers and patients of the top priority and implementing strategies to do just that. we are shifting towards medicaid managed care can watch independent study shows a death warrant of the first better quality than traditional medicaid. and for the first time, we are giving managed care companies a financial stake in improving quality year after year. no longer will the status out carolina bear the cost of for the managed health care alone. we will continue to push back against the federal takeover of our health care system. south carolina does not want and cannot afford the president's

health care plan. not now, not ever. [applause] to that man, we will not pursue the type of government rent being forced on us by washington. despite the rose-colored rhetoric coming out of d.c., these exchanges are nothing more than a way to make the state it's spending of massive amounts of taxpayer dollars on insurance subsidies that we can afford. we will have no part of that. instead, we will continue to fight to increase transparency between patients about yours and doctors and insurance companies and to get south carolinians invested again in the health care. as a nation, we can no longer allow ourselves to be divorced from the true cost of health care and in south carolina, we won't be. last year, we spoke openly and honest about the fact that it was a tough budget year and for

some groups in some programs, it is going to hurt. in some respects, the same is true this year. i have been pleased to see what has been accomplished on pension reform in the last few. specifically, i want to recognize center greg ryberg who is banging the drum as well as key lettermen and thomas alexander, representative ryan white and jim merrill and return the correct her, bill blume. the seriousness of focus of which you have been reforming our retirement system is comme the seriousness of focus of which you have been reforming our retirement system is commendable. let's be clear. the size of our pension system, the size of the unfunded liability has ballooned from $199 million in 1999 to $17 billion this year. if we are to honor our commitment to those who have fired a dedicated their careers to public service, then no one can dispute that this is an issue we must resolve into it

today. fortunately, some steps of argument taken. the recent decision to lower the assumed rate of return was an important one. not just because ms will finally be mum on on us about how much we can expect retirement systems aaron, but it forced us to confront the fact our current policy of automatically awarding cost-of-living increases is irresponsible and unsustainable. to protect our pension funds, we must have 19 cost-of-living increases to our retirees in years when the funds are losing money. it may not be politically popular, that it is the only response will thing to do. there are a number of other reforms he must adopt in order to show our retirement system and to curtail further abuses. we need anti-spanking provisions to keep employees from using sick leave and vacation to artificially inflate their pension payouts. for new enrollees, we need to close the doors to the teri

program once again on chad and for all to prevent double dipping. [applause] and while we're on the subject of double dipping, waiting to shut down the general assembly's own retirement system. it is time that legislators receive the same benefits as other state employees. [applause] if we take these steps now, we can ensure that our state employees have a reasonable, sustainable, comfortable retirement. if we don't promote continued to stick our heads in the stand i didn't have a retirement retirement at all. it is not the only reform you need to move forward with. just this summer we were reminded that happens when you have an agency that answers to more than one bus. at the department of transportation, we have a secretary appointed by the governor who runs day-to-day

operations and a commission that sets policy and approves projects as a balancing act, one that has the entire department answering to two buses. where's the commission system is entirely political and regions of our state against each other. how could i possibly have a statewide road plan with every project was initiated because of parochial needs and interests. the honest answer is we cannot. dig cannot repeat the mistakes of this past summer and they will fix structural issues causing this problem. but it is time for the two buses system to go. i ask you supports broker pro tem jay lucas was one of the cosponsors joined him to restructure the department of transportation. [applause] many in this room were on this issue in 2007.

we knew then that the actions we took were simply the first step. it is time we finished with johnson to solve the transportation commission. speaking of restructuring, two decades ago, governor carroll campbell made the following comment in his state of the state address. quote, ladies and gentlemen, 1992 is the time to start whipping government into shape. we must reform government and we must start now. for at least 62 years, governors have stood at this podium appealing to the general assembly for an efficient government accountable to the people. a daddies spanning 70 years ago this call, yet much of government answers to no one, and quote. 20 years later, we are closer than we have ever been to ridding the people of south carolina are backwards 19th century government structure that continues to keep us down. constitutional amendments to allow for the appointment of the

superintendent of education in the government and lieutenant governor to run on the same ticket through the house with your committee and on the senate calendar. let's bring them home. and then there's the partner of administration. chairman jim harrison in their offices searched on the development of the nasty amendment in the senate. we ask you support it. it is finally time to abolish the budget control. [applause] the bill is now on the senate floor. many in the senate committee to people of our state last june at the department of administration will be the first task you can leap this year. i thank you for that nine other people will hold you to your commitment. i understand all too well the politics that seen in the way bill landing on my desk, that the leaders in south carolina for far too long put politics ahead of progress and our

constituents deserve better. they deserve a government that hears them when they speak, the response to their needs, waste glass and serve better. and reserve a government that is truly, finally accountable to them. please don't get distracted. this is not about politics. this is not about power. this is simply about moving our state forward in responding to the will of the people. it's time to put this issue behind us, celebrate together and move on. the first year of anything -- the first year of anything that brings challenges and opportunities, pleasant surprises in the critical disappointments. this last year for me has been no different. i've been pleasantly surprised by the willingness of legislators to work together and find common ground for the betterment of the people of south carolina. it is my sincere hope that the way mr. manes and we progress on the issues we touched on

tonight. my biggest disappointment has been just as surprising. although the puzzle is so. i simply do not understand the culture of negativity that exists within our political class. the initial response to almost every reaction is for someone to say kant and know when to file lawsuit. i think differently. i believe the only way to make south carolina better, stronger is to take that same negative energy and turn it into a positive and focus on can and will instead said it and won't. no greater example of this negativity exists then the response of the few naysayers to the phone reading recruited for state employees. then they tell you how this story came about. while the primary focus day today is on getting our state working again, i also understand we have a chief executive of her and try to do what i can to improve the morale of employees

and remind them that our mission this customer service. one afternoon i was in my office thinking about the closer of negativity we were trying so hard to change, so i made my way to sheila jones, receptionists and i asked her to try and turn the phone, it's a great day in south carolina, how may help you and to let me know if the responses. on the first try, the caller responded, you know it is a great day in south carolina. it was all the confirmation i needed. the goal is for state employees to feel proud of where we live in what we do and have a constant reminder that we work for the person on the other side of the line. what could possibly be so wrong with that? [applause] so let's think about this. in 2011, we started with the deficit and ended with a

surplus. we announced almost 20,000 jobs in $5 billion invest it. i legislate to show the people they understood the importance of putting their votes on iraq. in past torts, unemployment and medicaid reforms. we've protected the integrity of the election process for voter fraud and the citizens from the dangers of illegal immigration. we saved the heritage golf tournament and we won the fight with the national labor relations board. those are reasons to celebrate. but what i love is that we are a great state was good, hard-working people. we are patriotic and love our country. we appreciate the simple blessings of life. we understand that the hospitality we show visitors is reflect to all of us. through our challenges, we will never forget the importance of holding onto her face and families and always taking care of our neighbors. pat to me is more than enough reason to say, it is a great day

in south carolina. and we've only just begun. thank you, god bless you and may you continue to smile on the state of south carolina. [applause] [applause] crab mac -- [applause] !

[applause] >> thank you. [applause] a thank you very much. [applause] thank you. than thank you, tkhank you, thank yow happy new year, new york. it is going to be a good one. id he great. [applause]we when we started theadministtion administration we had three colb

you seele behind me ball is thet personification of that. he was a great mayor of the cit of rochester. he's been a phenomenal governor. he's been everywhere. he's truly a superstar. let's give him a round of applause, lt. governor bob duffy. [applause] our great country will have ano important job at one time he was a formeran assemblyman.rmer [applause]er anotr another gentleman who had a ver important job when he was the state senator still has an important of attorney general eric schneider. [applause] majority leader talking about broad players, the last person to have a rookie season was

derek jeeter. a pleasure to be with you. [applause] speaker sheldon. th had two rookies to deal withi last year. the speaker both myself and the -- i can tell you this the speaker was always constructive it's not that we always agree o everything but the question is are you positive and are you constructive and are you working towards a solution and of the speaker was always constructive and was always supportive of me personally. we all owe him a debt of gratitude for a great job lastgr year. [applause] [applause] i francona said the malayple regulator john sampson canyou, pleasure to with you. lause] john, thank you for being here. assembly minority leader, granda

cold.ank brian, thank you for youryou service.r service [applause] all the judges of the court of appeals, especially chief judge lippmann, i could be with you. [applause]chief and as a point of personal conflict, i hopofe you notice a there's a certain amount of restoration going on in theatio capital and here in thece concourse. the ogs, op. cit. general services team has done and outas tending job headed by commissioner roh and his tito. [cheers and applause] the assembly never forgets their own. executive deputy commissioner joseph urbino, mark shamming from the museum has done an outstanding job. pero poster from the metropolitan museum. give them a big round of applause. thank you for all your help.

[applause] and to all of you, my fellow ne yorkers commit thank you for taking the time to be with usute today.todathat it was about one year ago todayi that we gathered in this room a this point toto talk about the f we saiand the trajectory of the state. we said at that time the state was at a crossroads, that new yorkers were hurting 8 millionrt people on the leader underemployed. reaped hardship ha and anxiety all across the state and people needed help. n the government, however, was so inefscandal and was in effect is. this rife with partisanship. a and the state was divided in wa many ways.upstat tonight is ate stake that day,la millionaires, middle-class, democrats and republicans. read a fiscal deficit, the mostl pronounced problem, but maybe even a more difficult problem is the trust deficit, performance e

deficit integrity deficit w yorkty suffering from. new yorkers deserve better than they were getting a new yorkers knew it. our capital is a symbol of deterioration and decline. de it was under renovation forr 11s nothing you, believe it or not,. scheduled to take four morers bh years. by the time the renovation was to s finished, we would've had to start a renovation all over again. the situation was grim. our people have problems and our government didn't have the capacity or the credibility to be obef service. we are at a crossroads. we have a choice to make and they made the choice to remain deci dysfunctional undecided or come together to reestablish the government of the statet of net york and to go forward to rebuild our state.o while we made the right choice. we we chose to begin to change thet

trusure of albany to puto peope first, to rebuild the trust can restore our deteriorating capital, 234thh legislative session had in historic successc for the people of this date. [applause] let me ask -- let me ask the mea please sn of the assembly in senate. recog please stand so we can recognizo you and give your round of applause for the great work you did in thiss legislative sessioe he restored the faith of the ofe this state and the thank you. we don't thank you. [applause]

speaking back on what we accomplished makes me tired.red we started by closing a $10 billion deficit without taxes and got a budget done on time.t we enacted the first-ever property tax cap after 20 years of debate and discussion.e've clapp, tom levitt, clapp. [laughter] we closed 3800 prison beds because we finally realize that prison operation is noneconomic development. we eliminated the mta payroll tax for most small businesses across the date.st we passed the toughest that regulation and 30 years. relaunch the new york open forra business campaign and regional councils that are energy seeminu tires they.ffo we passed an affordable energyih policy was on bill finance teamt and after eight years the past article time.

we provide a desperately needed for homeowners and all businesses. we passedes ethics reform to restore trust in government and we attacked chronic high u unemployment among inner-cityney disadvantaged youth with anuth innovative jobs program. [applause] we restored new york'syork reputation as a progressive capital of the nation.tio we had landmark achievements ini the area of social justice andoa economic justice. yokers millions of new yorkers have eeen treated as second-class s citizens for too many years. we en we endedd the injustice. we stopped forh discrimination.d we made history. the we let the nation. we passed marriage equality for allal new yorkers and we did it together.

[applause] but we didn't stop there. for decades, new yorkers wereed written by an unfair tax code. under our tax code, whether you make $20,000 or $20 million, you pay the same tax rate, believe it or not.not w it was just plain wrong.ought we brought fairness to new york. the principle is to unfold. the more you make, the higherheh the rate you pay because they flat tax is just not a fair tax and that is what we understand and believe in the state of neww york. [applause] under our new fair tax plan, wex added new brackets to protect we'v the middle class and higher bac

bracket. fair and under the fair tax plan, we stimulatedw the economy by evoviding a middle-class tax cut. everyone agrees to stimulateer p economy, whether it's president reagan or president barack obama that a tax cut in the economy.rg everyone agrees the middle classes and struggling for tootu long without any help and an without any assistance and we provided a middle-class tax cut for the lowest rate in 58 years. [applause] now 58 years. just think about that. it was a really long, long timee ago. the year was 1953. 15 tom dooley was governor of the statem of new york. the first color television set

which is being sold.ing jackie robinson was playing odgers base for the brooklyn dodgers. [cheers and applause] the first corvette was created.. i was just a twinkle in myi wasu father's eye. [applause] may be a double twinkle in my father's eye. and majority leader was onlyjori four yearsty old. but a dapper that he was, wasn't he? speaker silver was only eight oy years old.ars-old. but even at eight, speaker silver wase speaker silver.

but what is very heartening isv that even then you should know they were both hurt to get there, hand-in-hand andpt bipartisanship o. let's give them a round of applause. [applause] 2011 will go down in his three books as an extraordinarynd success in the members of thelde legislature should be very proud sn what they accomplished. thata unfortunately, that wasn't the only story 2011. 1 2011 with us a very challenging year towards the state in many, many ways, especially outside of albany. we had a terrible situation tha tropicals gormley and hurricane naming that caused terrible damage in parts of the state that could really least afford

it. the matt hudson, north country,r southern tier fisting terrible damage. darkesty be in our hours, new yorkers shined the th brightest, the way new yorkers came together in the spirit of community and the voluntaristunn and was inspiring. the way our first responders came together all across thee state as models of courage ando models of public service whenstn every instinct in your body says run to safety, the first racea h under his rant to provide safety to other neighbors than thatit they're new yorkers. if it wasn't for the extraordinary work of the firstt responses, what we went throughb what it then much, much worse. [applause]

we are joined today by many ofy the first responders who save lives during that terrible.perie of the state of new york.time a i asked them to stand this timed and let's give them a big round of applause and bank them for their service andr volunteerism. [applause] [applause]

2011 we accomplished much. there is no doubt. we've b 2011 we've been through much there is no doubt. but there's also no doubt we've we only just begun to do'v the work that this state needs done. would establish credibility. we reverse decades of decline ie the date, but now is the time t actually getth to work buildinga new york.york, we have big problems in newi york. we also have big solutions in news york. today were going to put forth a three-part plan to make our new new yorkere reality. part 1, the next phase and blept economic blueprint for global.ge part 2, reimagined government that can make it a ret ality ink part 3, new york her vision for a progressive future. when it comes to economics andtn getting the economy moving, our

challenge for 2012 i s this. how does governor, and a government, state government, national governments for jobgovh creation in a down economy while limiting spending and maintaining fiscal discipline? dancers create public sectorparh partnershipsip that led her stae resources to generate billions in economic growth and create jobs. and that is the challenge we. face.he priva spring the private sector to create jobste without spending state resources that would actually hurt the economic hurt situation of this state. gin let's begin by her economicat w strength. you know new york is the destination location. tourists and $50,000 in new york alone. new york is the place to be. new york is the place people pel want to come but mess stay ahea of the cocompetition.

convention centers are important economic generation. look right now when you look at thea list of where new york is in terms of convention centers,ion sadly new york's conventionthe f center on the westside ofwest own at the bottom of the list, literally number 12 after places like anaheim,on, california, washington d.c., los angeles. there is new york. right now the jv is not competitive.mpetitive. that hurts the american economy because werts are not getting t shows here.re. the largest convention center in the country is in chicago, mccormick place at 3.1 million feet. javits 842 feet. we've talked about it for years you possibly expanding.causeit the river is on the west side, e development to the north and it

is.as nt today ist. different.cause e today is different because we are not just going to talk about ourt problems. we're not going to talk aboutnt the challenges. we are going to talk about the opportunities.t going t we are going to do something about it.about let's build the largest convention center in the nation. [applause] we believe we can attract $4 billion in private sectortme investment to build a state of the art co new york convention center at the aqueduct racetrack. it'll be about jobs, jobs, jobsj 'lns of thousands of jobs.try. e we will go for number 12 toe bew number one because that is where we deserve to be the number one state in the nation.

we can then transform theen traf current jacobo javits eight and mapl master-planned 18 acres to revitalize new york city's wests side. b we will follow the battery park city model, which is atre mtremendous success. the government master plan thetd project, the are actuallycityas develop.ial battery park city as residential units, hotels, recreationals facilities, parks. they liberate talk about thebang urban planning and design schools around the country.ollo we would follow that model for the jacob javits eight.we bel we believe we can attract in billion in private vector$2 development to give you a sensee that the 18 acres.rae it was six teenagers.its cenr is

for the javits center is a very, very large tract plan and has great potential for the west side of manhattan.otial it is also ordered by the hud said and projects which areions underway. when you put javits, moynihan and hudson has together,, which could make a majorth difference. while reinvesting understrength we also have to invest in atrug struggling areas of ourar stater and many struggling areas have been ignored for too long.een gn new york is stronger when every region of the state is strong.st we must address the christ is i new york specifically. buffalo, my friend says theas th third-highest property rate in e

the nation. n in the nation. not in new york, and the nation behind detroit and cleveland. 20% of the people in buffalo are living in poverty. at a time of the statee state population was growing, buffalo lost 10% of the population. this is another issue that ishes gone on for many, many years while this state that by and did not take dramatic action. it doesn't have to be that way.t 25 years ago. albany had a struggling economy. the state began investing in albany as high-tech industry.st. today, albany is home to atoda world-class center for nany,owol technology he is the speaker mentioned, we just signed a new agreement with intel and ibm, bringing thousands of additionar jobs and is a vibrancy in the ia

capital district region aroundoa nanotechnology that would not h have happened but for the state's investment. abany if we did it in albany, we can do it in buffalo. b we believe in buffalo. let's put our money where our mouth is. we are ready to invest to $1 billion in economic development package.for the cit for the city of buffalo toy brig business back to buffalo. it's gone on for too long. it's going to stop today. [applause] that is a big b., singing forsti buffalo and tanning for blli billions. were going to work with the regional councils, which have been aun great success in the region counts and is working to create thousands of jobs and j track companies internationally or nationally and we'll putpu together an economic development

package.th we believe are 1 billion can leverage at the site of dollarsa in economic dvds. last year he got serious about academic elemental of the board of a two-part strategy. we have a maximum top-downnew yo strategy, new york open for business for new york state seta the table in a microbe automat strategy in the regional has wod council.e regional co ..has exceeded everybody's expectations. there is an energy that is out there, there is some optimism, there is the hope, therefore, lo partnerships. local governments are talking,i the private sector is workingthu with the public sector, people of different parties talking, iney are talking to the metstalk fans. it'se unbelievable.a tal and the creditor for this greato

accomplishment goes to one manma specifically if a normal public servant our lieutenant governor bob duffy and we want to giveli him a round of applause. [applause]soell it has worked so well the weto want to keep it going. we want to launch a second round of competition for an additiona $200 million. there's grt eat momentum especially in upstate new york. let's offer by the second round in a growth that momentum even stronger. [applause]enopened f the new york open for business' campaign is going to bending expanding this year and go wiobal i por local organ effort to boost bo international competitivenessitn tecause we are not justnotjus competing with other states we are competing with countries als

acrosss the globe. to we have to realize that and be have t prepared for the competition.cop the open for business campaigna was also expanded to promote tourism and will be running ina television advertising campaigns ca to attract people to our statet ou highlighting our regional treasures like the catskills, the warren country and longe lng island beaches. we have th wee greatest sightsn the country.countr what's promote in the generate tourism throughout the state especially in upstate new york.t [applause]another tentia another potl ential economic engine for the state is casinoim gaming.o i believe we are living in a state of denial. it's time that we confront reality. it's not a question of whethern or not we should have gaming in the state what triet we have gaming in the state of new york we have tribal casinos allacross

across the state. we have casinos all across theat state. we don't realize it or regulated or capitalize on it, but we hav gaming.have as a matter of fact, one of 29,000 electronic gaming who an machines that is more than in. atlantic city. that is more than any state in the northeast or the middlemi atlantic.lantic, so so the debate of we don't wantg to go back into the gaming business is just not true we are in the gaming business. we are iot doing it well, we are not doing as well as we should be doing but we are in the by gaming business. we are also surrounded bythe st casinos on virtually every border of the state. casino massachusetts just who legalizee casinos., we not only do we have gaming

within the state's is not about chips and cards. this is about the jobs that the casino industry generates. we generate one billion dollars in economic activity for the state of new york if we recognized reality and regulate and capitalize on gaming the way we should. let's amend the constitution. let's do gaming right. let's make it safe. let's protect our people, but let get the jobs back in new york and let's take the first step this year. [applause] we have a great opportunity to rebuild new york. we need jobs, we need to be competitive, we need to be safe. we need to rebuild our

infrastructure. 32% of the bridges are rated deficient. 40% of our roads are rated fair or poor. 83% of the state parks and major dec dams are in a state of disrepair. we have much work to do and we need a new approach to get it done. i'm proposed setting up new york works fund and task force. this task force will be made up of leading public and private sectors experts. coordinate for the first time all the state capital construction. mta has a capital plan they're pursuing. different than of the port authority which is capital plan they're pursuing. different from the department of transportation which has a capital plan that it is pursuing.

different from the department of housing which has a capital plan that it is pursuing. it makes no sense. it never did. time to be squandering resources. you can't have that many agencies and authorities coming up with their own vision for the state. we need comprehensive vision and we need the expertise frankly to help us get it done. not the state's forte. there are people in the private sector who are expert at this, want to be helpful. we want to invite them in. put together a task force and actually lead this effort. we want a comprehensive master plan of all of the states construction over the next few years and how we can coordinate and maximize that work to have a positive synergy among the projects. we also want to accelerate the construction. we can't do this on government time. this is going to have to happen on real time. it can't take three years to

put a shovel in the ground. it just can't work that way anymore and it is not going to. [applause] and i said, said in the beginning, that the task for us is to find leverage with private sector partners. we want to find a 20 to one, leverage throughout these projects that we maximize the impact of the state money. we are planning to improve more than 100 bridges, which will include finally building a new tapanzee bridge. 15 years of planning and talking and commiserate something too long. it is time to build and to act and perform. [applause] we're going to repair 2000 miles of roads. that is from buffalo to new york city five times. we're going to finance upgrades to 90 municipal water systems. improve 48 state parks and

historic sites visited by 37 million people per year. and after hurricane irene in storm lee, repair 114 flood control projects, all across this state. we need power to power our economic growth. let's build an energy highway system. that doesn't exist now. we have supply of power in northern new york, quebec. we have power supply in western new york. we have a tremendous need for power in down state new york. let's connect the dots. let's connect the supply dots to the need. what eisenhower did in the '50s, by building a interstate system is what this energy highway can be to the next generation. if we want the state to develop and we need the jobs and we need the businesses,

we're going to need the power and this is the way we're going to do it. the state can master plan a system and issue an rfp. we'll allow private sector, private sector companies to come in to bid it and build it. we believe they will finance it over a period of time and we believe it can generate $2 billion in infrastructure. this is no doubt a comprehensive and ambitious jobs program. 15 billion in infrastructure. 4 billion for a convention center. two billion for javits transformation. 2 billion for energy highways. one billion for gaming. one billion for buffalo we believe will generate additional money from the private sector. a total of about $25 billion. this program will make a major impact on the trajectory of this state's economy if we get it done. and the people of this state

desperately need it because it all comes down to one word, jobs, jobs, jobs, jobs. that's what people need in this state and that's the focus of this plan. [applause] part two, we need to reimagine government that can make our plans a reality. this is not going to be a question of tinkering around the edges. we started last year with our sage project. the more i've seen the worse the situation is with the state agencies. this is going to be a ground-up reorganization. i'm going to be giving you more details in the budget but the system is just gotten to a point where it is not operational and we've been cutting the budget for many years and reducing personnel. we never reduced the workload and the wheels have come off the car.

we're going to need to fundamentally reimagine how the government operates. we'll need a government that performs better and costs less. a government that, woulds for people of this state must commit to fiscal discipline. the state's competitive advantage is increased when we are reducing taxes, not raising taxes. we have to commit to hold the line on spending this year and close the remaining budget deficit with no new taxes and no new fees. we can do it. [applause] we must do it. we must do more on mandate relief. the cost of pensions are going sky-high as you know. [applause] 100% increase in pensions from 2009 to 2013, believe it or not. we need to reform the pension system and create a

new tier 6 in this state. i understand the politics and i understand the political opposition but the choice for you this year, my friends is this. when we're talking about pension reform for union employees, we're talking about union employees who don't even exist at this point in time. because current employees are covered by the current pension system. we're talking about changing a pension system for employees who may be hired in the future. employees who may be hired in the future. no one ever said a pension system was a legacy or an inheritance where it got passed from one bern down to the next. i refer to these people as the unborn. not even hired yet. and if they look at a job with a benefit package and decide to take the job with that benefit package, that is their decision and their

opinion but to protect a pension for years in the future as a legacy when the taxpayers of this state just can't afford it anymore, is a violation of the public service and the public duty. we have taxpayers who are suffering today. and we have taxpayers who need help today. [applause] and let's respond to them. we need to help local governments. the property tax cap we passed worked. it forced fiscal discipline. forced being an operative word and it stimulated a citizen dialogue but it stopped the assumed annual increases. and property taxes were going up at a rate that was unsustainable. unsustainable. 6%, 7%, 8%, every year. and it was just on automatic pilot and you heard it all

over the state. the tax cap doesn't stop as we know. the taxes from going up. but, it engaged the citizens. what is this tax cap? what is this about? more people are now turning up at the discussions, the local budget discussions because citizens are engaged and it has put pressure on the local officials to think before increasing. but that's exactly what we wanted to happen. we want the citizens engaged and it is working. but, the local governments are also right that we have to do more on mandate relief. we set up a mandate relief council in last year's legislation. i want that mandate relief council to have public hearings all across the state where citizens participate, and local elected officials participate. let them come up with a package that they present to the legislature this year on mandate relief and let the

legislature take an up-or-down vote this year because the local governments deserve that. [applause] we must change the focus and reimagine the government in our priority area. priority mission, for this state government is public education. i think we can all agree. what i want you to know, i learned my most important lesson my first year as governor in the area of public education. i learned that everyone in education has a lobbyist. [laughter] i am not kidding. superintendents, they have a lobbyist. principals, they have a lobbyist. teachers, have a lobbyist. school boards also have a lobbyist.

the maintenance personnel, they have lobbyists. even the bus drivers have lobbyists. the only group without lobbyists are the students. [applause] well this year, my friend, the students do have a will be byist. i'm taking a second job. i amount going to be the governor of the state of the new york and i'm also going to be the student lobbyist. [applause] and we're going to have to take a fundamental look at what we've been doing because the purpose of public education is to help children grow.

the purpose of public education is not to grow the public education bureaucracy. [applause] we are driven by the business of education. more than achievement in education. business of public education, and the attention to the business of public education is brought us to a point where we spend more than any state in the nation. the lack of focus on the achievement and the students have brought us to a point where we're 38th in graduation rates. it is not about the business. it is not about the lobbyists. it was about the student and the achievement. we have to change our focus and we have to switch those two numbers.

then we'll be a success in public education. [applause] we need major reform. we have to change the paradigm. when it comes to transforming education we need to focus on student achievement and we're going to need a real teacher evaluation system. the law that was passed in 2010 during the race to the top law just doesn't work. we recently even saw the board of regents threatening to stop money going to school districts because the teacher evaluation system has never been put in place. two years, and it hasn't even started yet. our children deserve better than that. and hopefully they get it this year. [applause] we must also transform education when it comes to the management of school districts.

there's a vast disparity between how school districts manage their money and manage the system. some are managed much better than others. it's a point that hasn't been evaluated or looked at. we need to demand a management efficiency and have a real management evaluation system along with a teacher in school academic system. we need a new blueprint for education. i want to form a commission to really come up with an overhaul plan for our education system. i want to do it on a bipartisan basis. i want to do it cooperatively with the legislature. where we have joint appointments. but i want the report done this year because we have wasted enough time and i want to do it together. [applause] is public education is a core mission. we simply can not fail. we will not fail. we all say it's about the children and the future. it is about the future and it is about the future and

that's one obligation every person in this room takes seriously and i know we'll accomplish it through this legislative session. public safety is also a core mission. and we learned the hard way last year that we must anticipate and be prepared for all emergencies. we need a statewide network of emergency responders who are prepared for anything at any time. i don't want to get into a long debate about global warming whether it is happening or whether it is not but i can tell you this. 100 year floods happen every two years now. so, something is going on. i witnessed first-hand, last year, the work we need to do with the breakdown in communication transportation and the need for better deployment of personnel throughout the state. we have a spotty emergency response system.

some areas of the state have more expertise, more equipment, more personnel. others parts of the state don't. we must have the best state emergency management operation in the country. it is literally a matter of life and death. it is one of the foremost responsibilities of government. we are blessed to have a gentleman who has more experience in this area than anyone i've ever met. he is come up to join us to put together our state emergency operations. he previously ran the emergency operation for the city of new york and for the state of indiana. he then went to washington where he is a biodefense expert at the u.s. health and human services, but he's a new yorker first. we asked him to come back and leave washington to come put together our network. he agreed. we owe him a debt of gratitude. i'm excited to have him.

let's give a big round of applause to jerry howard. [applause] part three, a new york wigs for a progressive future. -- vision. we are still in a financial crisis. it is still taking a terrible to on our state homeowners. last year we created the department of financial services headed by benjamin losky. it was a new york state regulation that provided financial regulation and consumer protection. this year we'll establish the foreclosure relief unit which will provide counseling and mediation services to help banks resolve mortgages and help new yorkers stay in their homes finally. [applause] last year we enacted the best tennant regulations in

30 years. this year we'll make sure those laws and regulations are being enforced creating the tenant protection unit at department of homes and community renewal to investigate fraud and prosecute unscrupulous landlords. too many tenants have been abused for too long and it stops now. [applause] we are committed to expanding mwbe opportunities and doubling the goal of 20% for mwbe. [applause] we have identified an obstacle which is many of the mwbe companies can't obtain the bonds that are necessary to participate in the state contract. we will now be providing support for that bond which will allow companies to qualify for up to $200 million in state contracts. [applause]

our cuny system is the great equalizer. for working families the cuny system said that any student in new york could get the best college education in the nation. and cuny has done that magnificently well for many years. it is a precious jewel of this state and it is a jewel we started polishing last year and we'll continue. we started the new york suny 20-20 program last year. that allowed campuses to compete for grants to improve the academic excellence of the college but also become an economic development generator for the region. the research centers competed last year. it is going very well. we want to expand that competition to the 60 other campuses for suyn all across the state and have three

awards of $20 million each to spur competition and provide funding for suny to reach the level of excellence we all want them to reach. it is an exciting program. suny is doing magnificently well. we're blessed with a great leader. let's give a big round of applause to chancellor nancy demfor. [applause] for all the progress and for all our sophistication, we still have wrongs to right and some of them are frighteningly basic. one in six children in new york live in homes without enough food. and when you think of that statistic, with all we've accomplished, with all we have, we still have in this state children who go

hungry. my friends, that is just simply unacceptable in this great state, in the year 2012. the federal food stamp program is available for many of these families who are not taking advantage of it. 30% of the people who are eligible for food stamps don't enroll. that is 1.4 million people in the state. one billion in federal fund unclaimed. we want to start a program where we promote outreach, we increase encoalment and we end the -- enrollment and we end the stigma of applying for food stamps. one of the things we do now which makes the stigma actually worse and creates a barrier for families coming forward to get food stamps is we require fingerprints. i'm saying stop from time to timing for families with

children for food. stop it all across the state, and let's stop it this year. [applause] i understand fraud detection. i understand fingerprinting. but don't make a child go to bed hungry because your government wants to come up with a fraud program that requires fingerprinting. [applause] we will make sure no child goes to bed hungry in this state. i want to expand the dna data bank which has been a great technological revolution in the area of criminal justice. it helps prove guilt or prove innocence. it's helped with 2700 convictions. it helped with 27 exonerations of innocent people. right now the database is applied to 50% of all crimes. i propose we expand it to 100% of all crimes.

let's provide justice for all and let's be the first state in the nation to do it. new york can lead the way once again. [applause] we have done great work when it comes to tax tearness. fairness. there is more work we can do. we can close loopholes. we can make it more fair. we can make it more pro-growth. there is a lot of work to do. i want to form a tax reform and fairness commission to go through the whole code to close those loopholes. i want to do it on a bipartisan basis in partnership with the legislature and let's get new york to have the fairest tax code in the nation that also incentivizes job growth in this state. [applause] i'm going to be sending you a bill on campaign finance reform that puts public financing, match contributions, lower limits

and increased enforcement at the board of elections. new york currently rates 48th in the country in voter turnout. we have a government that we can be proud of. let's have. let's build that pride and let's have elections that new yorkers can be proud of also. [applause] let's have campaign finance reform and let's do it this year. [applause] in closing, let me say this. by all accounts last year was an historic success. and i'm hearing it and i'm sure you're hearing it. people ask all the time how did you do this? how did it happen? and they have all sorts of complicated answers for why we had a successful year, complicated theories. i think it is actually

simpler than that. i think we had a change of attitude last year, a collective change of attitude. we were done with the dysfunction of albany. done with the label of being dysfunctional. we were tired of dealing with the incompetence of government. and we made up our mind that we were going to change it. we disregarded the political extremists on the left and on the right. and we did what was best for the people of this state. we believed in the people of this state. and we honored the people of this state. and we showed a mutual respect to each other. institutional, and personal and by the end of the year i really believe we put our politics aside and we were no longer democrats first

and republicans first. we were new yorkers first. and we acted that way. [applause] and it worked. and we delivered. and we got things done. and we made this state a better state. and that is why we're here in the first place. and the people get it. and i am so honored, so honored to be part of what you did. and i have been so overjoyed to be able to go out to the people of this state and explain to them our accomplishments and how we have worked together to make this state a better state. now, you will hear that you're back in this town the naysayers and the cynics are saying well, what happened last year was a fluke.

you can't do that again. that was, for whatever reasons the stars the plan etc.. but it was a one-time situation that we're going to slip back to the old way. that we're going to slip back into dysfunction. that is what you will hear from the cynics. i'm hear to tell you that the cynics don't know us and they don't know new york because there is no way we are going back. we are going forward. there is no way we are going down. we are going up. [applause] i am telling you, we have just started to explore the potential of this partnership. we have just started to explore the limits of our imagination. we have just started

tackling the problems that this state needs tackled. this agenda that we laid out today is an ambitious agenda, more ambitious than anything this government has done in decades and decades and decades. but it is an agenda that know that we can do because we are new yorkers. and we are part of the best government historically in the nation. and we can do this. we can build the largest convention center in the country. we can rebuild buffalo. we can transform the jacob javits site. we can build a new energy highway system. we have that capacity. it is who we are. it is where we come from and we're not going back. this whole state's legacy, our history was about seeing challenges and attacking the challenge and always going forward. we did all sorts of things that they said we couldn't do.

we built that empire state building 102 stories. we did it in 400 days in the middle of a depression. when you're driving across up state we built that erie canal and opened up the entire west to commerce. we did it on time. did it on budget. did it with men and women wand mules. we've always been the progressive capital of the nation. we ended slavery in this state 35 years before they signed the emancipation proclamation. we declared independence from brittain before they signed the deck a la race of independence. -- declaration. we birthed, women's rights movement, environmental movement, all were born in this state in this capitol by this government. [applause] this state has served so many purposes. we've been the gateway to

immigration. while other states build walls to keep people out, we open our arms and we invite people in. we're not afraid of the diversity. we celebrate diversity. we are a state of immigrants!. [applause] and we are up state and we are down state and we are black and we are white and we are gay and we are straight but we are one state at the end of the day and we act that way. we come together because we are new york. and if we remember those lessons, my friend, there is nothing that is stopping us. this isn't the end. this is the beginning. last year we learned to walk. next year we're going to run. we have the challenges. we have the need. we have the know-how. we have the confidence. we have the credibility. we have the talent. we have the relationship.

and we're going to deliver for this great state the best is yet to be. they ain't seen nothing yet! 2012, is the year that we're going to make the empire state the empire state once again and we're going to make the dreams of this state a reality. thank you and god bless you. [applause]

one last week but postponed the speech after the sudden death of the top republican and the state assembly. coverage of this 45 minute speech comes courtesy of njtv.[] [applause] thank you. thank you very much. lt. governorlt. governor, madam, mr. president, members of the 215th legislature, members of our congressional delegation, members of the supreme court, our former governors and the people of the state of new jersey this has been a difficult week for all of us who work in the state house and are committed to public service. over one week ago, we lost our friend.

during this week we have celebrated his life in this chamber at his week and a funeral mass and undoubtedly in the homes of the thousands of new jerseyans. we count that recognition today by fleeing all flags on government buildings across the state at half staff in his honor. now if you will all please join me in a moment of silence to honor alex's life and legacy. >> thank you.

knowing alex as i did over the last 19 years, i know at this point he would tell me enough now, let's get back to work. that is exactly what i intend to do. it's a pleasure to return to the chamber to report to you on the state of our state. today i am proud to report that the new jersey comeback has begun. [applause] how do we know it's begun? look around you. in the last two years we've come together to address the mess of the state budget, the decline, deficits and departures that plagued the state just two years ago but have been reversed. the budget is balanced. our unemployment rate is no longer going up. it is coming down.

job growth has been restored. in the private sector where we want it. new jersey is back. we've restrained the growth of property taxes and put our attention on the more stable and sustainable footing. and in doing all of this, we have restored confidence and pride and new jersey. it's taken place in large part because of what we have done in this chamber would together with we've done something that trenton hasn't seen a very long time. we work together. we achieve compromise and put new jersey and its people first. [applause] for new jersey today the debate is not about who can blame for our failures is how to blame on

our success. it's no longer about how to deal with devastating decline. it's about how to push new jersey even further ahead better than we thought we could be. in these last two years new jersey set the standard for governments in america. be honest, don't mix words. to the big and difficult things not only because it is right but because it lays the foundation for future greatness. now it is our job to finish the task. job number one is the economy. consider where we were just two years ago. what i raise my hand to take the oath of office then i couldn't say with confidence the states would meet its payroll within two months. imagine that. new jersey, unable to meet its payroll. that is the gravity of the mess that we were left with. deutsch the mismanagement that rains in this town before our a

rival. our deficit for the fiscal year already more than half over was more than $2 billion. the budget problems for the next year, fiscal year 21 record deficit of $11 billion. the solution wasn't easy but there was also not complicated. we have spent too much as the state and we have lived beyond our means. and by trying to tax their way out of it from a previous governors and legislators have left new jersey and future place dead last among the place and among the total tax burden on the citizens. we have the highest bill to implement in the quarter century and the largest budget deficit per person of any state in the nation. step number one was to stop the bleeding by stopping the spending would cut three utter 75 programs in the first fiscal year and saved $2 billion for the taxpayers and brought john

karzai and's budget into balance. next with your health we enacted a budget that imposed discipline in the form of another cut in spending for the second year in a row. cutting spending for each and every department of state government. that was tough medicine. but it was the beginning of better health. last year because we took that medicine we were strong enough to reduce business taxes and improve the climate for job creation. i want to thank this legislature for joining me in recognizing that to grow the sector jobs again we must reduce the tax burden on our citizens and all businesses. [applause] step two is controlling property-tax says. as everyone already knows, they

have risen 70% in the ten years before i became governor. rising property taxes were driving people out of the state. and so we joined together again and i want to thank the legislature and in particular your leaders, speaker oliver, property-tax growth of no more than 10% a year and we put the same 2% cap on interest arbitration award that we are giving rise to higher taxes. we must never forget that the root cause of the rising property taxes is always excessive government spending. as with all problems you must get to the root cause, and together we did it. here's the good news. it's working. two weeks ago the state of largest newspaper announced the result of its comprehensive study of property taxes in new jersey. the headline said it all tax

relief. step three is to get a grip on our long-term liabilities. our pension system as $54 billion in debt at the start of 2011 scheduled to be under water by $180 billion in three short decades without a change of course. it is imperative that receive the pensions for the middle class and at the same time lifting the burden off of our taxpayers and create an unrealistic promise made by career politicians so we confronted the obvious, negotiated solution and save taxpayers over $120 billion. the pension of every state worker of every teacher and of every retired municipal employees are more secure today by the tough choices we make together we save their pensions. [applause]

again, the solutions were not easy and they were not always popular with were also not complicated. we have to raise the retirement age of it and get a grip on the we have to make sure that the contributions of the employees were fair and the state kicked and also but by taking the steps we made a dent in the problem. at the same time we had a public employee health system that was $67 billion in deficit in january of 2011. we rely on two simple principles first. we should give employees more choice. everyone must pay their fair share. once again we compromise with each other to write a system and

in the process made political history in new jersey. we came together we took on the special-interest. we put our citizens first of the time "the new york post" said we had pulled off something of a miracle in the pension reform. as you know it wasn't magic. in a country dominated in so many places by partisan bickering we had to be honest and realistic about the math and grown-up about the answers and the good news is this the people of new jersey can take the truth. we have shown the rest of the country that we are jersey strong. today the result of that jersey strain and attitude are beginning to show. since our administration can into office, new jersey has added over 60,000 new private sector jobs. remember in 2009 the year before we came into office new jersey

lost 117,000 jobs. according to rutgers university economist 2011 was the best private sector job growth here in new jersey since the year 2000. 60,000 new private sector jobs since we took office the best job growth in more than 11 years. now here's my problem with the people the new jersey. we will keep the momentum going. i will not permit anyone to reimpose the tax raising overspending and irresponsible ways of our past which relate to the dark decade of joblessness in new jersey. stand strong with me and i will stand up for you. we are going in the right direction. [applause] ..

of those policies and detain they brought to the citizens. the new direction is clear. we have changed the business environment and as a result we are changing the jobs environment which still bush's regional headquarters in bridgewater for the northeast research development center. we've been able to attract new jobs for around the country. er. from pharmaceuticals that movedp to pinnacle foods which moved to cherry hill. employers are beginning topaippy erderstand the new jersey isoyed once again a friendly state foro and jobses and jobs, a great place to work and a better place to raise your family.tter pla and it's notce just around theoe country. country. people are recognizing the new jersey comeback all around the

world. der pettis north american headquarters in morris county. novo nordisk in middlesex county and lg electronics in bergen county. we have begun this turnaround in space a strong national headwinds. across our country, growth is still anemic. there's been no solution to our debt and deficit problem, no catalyst for growth, new leadership on the economy. the politics of envy have overtaken the imperative of opportunity. our economy suffers while washington politicians fiddle. america's position of strength and leadership around the world deteriorates other leaders bicker and blame them for the last two years come in new jersey the exact opposite. we achieved results because we did it together. over the last two years, we said let's put aside our differences

on some issues that were able to work together among others. now come it doesn't mean they didn't shout at each other. it doesn't mean we didn't get angry. you may recall that even some of my friends has some very comical nicknames for me. [laughter] [applause] now, now that anger is natural. that passion is good. but we have showed that on the important issues, on the really big things we can still come together to lead the people at the jersey to a better outcome. we have shown that it's possible to hold fast key principles and still reach compromise. we have shown new jersey and america that there is a better way, that divided government can

work, that democrats and republicans working together as possible. in fact, it is necessary. two years ago at nine i ago i asked senator sweeney and speak all of our teacher in me and a handshake to demonstrate our commitment to working together, sticking to principles and finding common ground for the good of the people. our handshake that day was a symbol because it was nothing more than that. that end, we had nothing to that people that are good faith and the promise for tomorrow. today, no symbolic handshake either. thankfully, we have shown through our deeds that we are willing to work together. substance on reform, accomplishment over partisanship i want to say thank you to steve and she left for being my partners in that progress. [applause]

so when this year in 2012, but it continued to show the state and the nation what is possible. let us continue to have new jersey set the example. the new jersey continue to lead the way and lets do it together. over the last two years, we've had to make some tough choices. it was important to do what is difficult and what was necessary to take new jersey out of its hole. because it is hard decisions, the shared sacrifice and because we stuck to her discipline, we can now focus on our priorities. we will have to continue to hold the line on spending. i guarantee this, the budget i submit next month and any budget i will ultimately into law in june will be truly, honestly balanced. but we have been working to get

to this moment. to finally have new jersey right side up so we can focus on the big things. to challenge ourselves to be better, to strive for greatness, to ensure that every new jersey is given the opportunity to have the life they want. so in my budget, i will fulfill a promise i made to all the people in new jersey in 2009. real relief from the heavy, personal income tax burden that the strength of our families and forced many to move away. i propose to reduce income tax rates for each and every new jersey in. and every tax bracket to 10% across the board. [cheers and applause]

[applause] i also propose to fully restored at the earned income tax credit for new jersey's working poor, which were forced to cut through the dark days of 2010 when growth was gone and we had no money. so understand what this means. every new jersey and look at a cut in taxes. the working poor, the struggling middle class, the new college graduates getting their first job, senior citizens who have already retired. the single mom, the job creators, the parents trying to send their son or data to college. ever make the sacrifice and everyone will get the benefit. [applause]

also sent a loud signal to new jersey and it would be to jerseyans in. the families now living here and families who have left. businesses of job creators thinking of coming here and those who have struggled to stay here. new jersey is once again a place to plan your future, raise your family come and grow your business and someday retire. the new jersey comeback has begun. [applause] now, let's be under no illusions. our job is turning new jersey round is far from finished. there is much work to be done. make no mistake we are in a competition. a competition for jobs among countries yes, but also amongst the.

in the last decade, two thirds of all companies which move jobs to a new location did not move to other countries. they moved from one state to another. here in our region, our most direct competitors are making very different choices and connecticut governor's race income tax rates on top earners, small businesses and job creators in new york last month enacted legislation to do the very same thing. other big states are also raising taxes. california's governor has proposed to at the top rates among the highest in america by up to two percentage trade in illinois has adopted a lot to raise all income taxes rise 67%. now in this environment, the best way to compete is to show a completely different direction. let others choose tax increases. each is responsible tax cuts together overburdened citizens relief and help new jersey girl.

[applause] now some argue, wait a minute governor, your friend andrew cuomo in new york only raise taxes on the rich. why not adopt governor cuomo's package for new jersey? well, here are the facts. if we enacted the exact same income tax rate for july by new york last month, every person earning less than $100,000 in new jersey, which makes a tax increase of anywhere from 150 to 200%. and by the way, those earning a million dollars would get a tax cut. is that what we want? is that fairness? i don't think so. an across-the-board tax cut is fair. every new jersey taxpayer will benefit. every new jersey is rates will go down.

every new jersey and was a relief. even those who don't pay any income tax at all. that's exactly what i was talking about when i took office, that the tough choices would lead to the right one. today because we have put our fiscal house in order, we can budget for our priorities and give tax relief to other people. tax relief that will lead to better lesser citizens and were jobs for our state. job number two is to reform our education system to strengthen our schools. over the course of the last year, my proposal i averted this legislature in a bipartisan basis to put in front of you package of bills that will address the biggest challenges facing public education in new jersey. we've had a year to debate, discuss and deliberate. now 2012, it is time to at. new jersey in so many ways is