with more than 1000 agribusiness, missouri is clarity on some of the brightest minds and innovators in the world. but they passed up last year to the missouri science and innovation reinvestment act, we are poised for rapid progress. as part of the missouri works, my budget includes $4 million in the capital to invest in attracting the very best science talent to missouri. by speeding the flow of innovation out of the lab and into the marketplace, wipro industries today in creating the high-tech jobs that tomorrow. missouri works to create jobs in rural communities. anyone who grew up in a small town like i did knows there's something special about it. folks want their towns to be a place where kids can grow up safe, get a good education, find a job, raise a family. it wasn't all that long ago just a generation or two that folks a

decent living selling baseball uniforms are making shoes in piedmont or typewriters in springfield. those jobs may become, but our rural way of life is still strong. our plan will create custom tailored job creation for small business owners in rural communities. because we want every part of missouri to move forward together. [applause] nowhere off for helping dramatically expand the internet. broadband access is a game changer for commerce, farming, education, law enforcement are extremely competitive, bringing

the total investment of $311 million or 18 projects to wire communities across missouri. let me give you a quick example. over in otterville with would hope that the local school partners to show me technologies. this is expand the ability to provide web-based classes using streaming video. just as the railroad and the interstates changed the face of the fate of missouri communities in decades past, this project will help stave the future from carterville to new london and everywhere in between. rural communities are part proud of missouri's past and they are also a vital part of missouri's future. especially as we all know when it comes to agriculture. mr. farmer speed, fuel and clothe the world.

with 108,000 farms generating $12 billion annually, agriculture is truly the back of missouri's economy. [applause] kind of makes you hungry just thinking about it. we want to keep missouri agriculture growing strong. i think committed to working with farmers open-air markets can improve energy efficiency and use the latest science and technology to make missouri agriculture even more competitive. folks like bob and kay vandiver are a major part of the agriculture. bob's parents raised a few cattle, simply trying to make a living off the land. but he and kerry turned that farming to one of the largest in

our state. it is a lasting legacy, one that will be handed down for generations for representing all of our great agricultural community night, please welcome one of the show me state's outstanding find families, the vandivers: bob, kay, gary, dale and jake. [applause] to compete in a changing global economy, this area forecast public schools. public schools have always been and will always be beacons of hope, opportunity and excellence for all. no one is turned away. some children come to school hungry.

some burden poverty and neglect. but when a child of want and a child of wealth walked through her schoolhouse doors, they enter as equals. [applause] support for public education should not be used as they wish to divide us. here in missouri, public education is an enduring values that unite us. [applause] some states have opted to balance their budgets on the backs of schoolchildren.

it's cut by $232 per child. texas slashed $4 billion from its education budget, triggering massive layoffs. south carolina, arizona and california have each reduce spending per pupil by more than 20%. but you know, all across missouri, i have not met one parent or one teacher who thinks we should balance their budget by taking money from her kids classrooms. [applause] for the past three years, even in challenging budget times, we've maintained level funding for a classrooms. bistro take the next after the budget i present tonight provides record funding for k-12 classrooms because it is the right thing to do. [applause]

several urgent issues facing public education require our action the session. first we must find a solution that applies the foundation formula fairly unpredictably. we also know we have more work to do with her urban school districts on both sides of the state. to make sure that every child in every community has equal opportunity to succeed. but just take a look at st. louis. we still have a long way to go, but we are seeing how strong leadership, dedicated teachers and committed parents are making a real difference right now. students have shown academic improvement for years in a row. the district is not operating with the balanced budget. the attendance rate is at 93%. [applause]

for my frequent discussions with teachers, administrators and others center work with organizations like teach for america, it's clear that same was schools are finding their footing and moving in the right direction. [applause] and we need to take steps to improve public education number of other areas including charter schools. missouri has strong charter schools. or inspire teachers with fresh ideas are giving children a top notch education. but let's be frank. we also have charter schools, where children are languishing in the classrooms that aren't up to par academically. and schools that are not well managed. and our students pay the price. i call in the legislature are sitting on my desk a comprehensive charter accountability bill that holds all charter schools and their sponsors to high standards of academic achievement and

financial integrity this year. [applause] .. [applause]

our economy is changing and education can't stop at high school because by the next decade will be two-thirds of all jobs of the united states will require some kind of post secondary education. that means markets will need a college degree. but to many families simply can't afford the cost of a college education. so for the past three years, missouri has tackled college affordable the head on. while universities and the caruthers states were increasing tuition by double digits, we froze tuition in 2009 and 2010 in all of our public colleges and universities i was dhaka which is to continue to hold down tuition and as a result, enrollment in our public colleges has surged. over the past three years, we have had a 31,000 students, that is a new record each fall. that's great news for our students. our schools and the future of our state. now, in another challenging

budget year, our top priorities in funding for higher education must continue to be high-quality academic programs and student scholarships. in addition to the record investment in the case resolved classrooms my budget will provide stable funding for the college scholarships including bright light and access missouri and a-plus. [applause] let me talk for a moment about that a plus program. the scholarships cover tuition and fees at any public two-year college in the state for students who are willing to work hard, play by rules, get back to their communities. since i've become your governor, we have worked to add 110 new a-plus schools. in a number of students on the program have risen 30%.

this year 12,500 missouri students will take advantage of our scholarships. next year we anticipate closer to 14,000 students will be scholars. we will continue to expand access to a-plus scholarships to students all across our state. now, investigating kawlija portability is critical for the continued economic growth. but we have to balance the budget. we all know that means you to cut in other areas. for the balance of the budget in a wave of attacks or scholarships and academic programs in calling on our colleges and universities to continue to look for more ways to cut overhead and administrative costs and run smarter and more efficient operations. while lehman and more efficient operations are ent operations are essentials, - education while lehman and moret operations are essentials, - education must continue to adapt for the modern economy. public colleges and universities would change the business models

but to give you an exciting example of what one colleges doing. this month the central missouri unveiled a new model called the innovation campus. and it has the potential to transform how we educate students. innovation campus students will enroll in college courses while still in high school and participate in a high impact apprentice ships throughout the college curriculum. the corporate partners will underwrite tuition scholarships and faculty and employers will partner to buy each student the expected results. students get a running start on the college requirements. they were in the practical skills necessary for excellent careers. they can earn a degree in three years or less. business partners will recruit and build their work force for the future at cost for students are dramatically reduced. i encourage all of our universities to take the lessons of the innovation campus to heart and develop similar

programs. [applause] so when we come together, and we take that extra step, we are proving that there is no limit to what they can accomplish. working together we pass landmark legislation to ensure that children with autism get the therapy they need. for too long insurance companies weren't required to cover the most authentic autism therapies but that changed last year and now 1.6 million missourians have plans that cover all to some of treatment. [applause] so this year i called the general assembly to pass legislation to increase access to care by expanding the number of licensed professionals

working with children on autism and misery. that's what we can accomplish when we take that extra step. working together for the permission of folk is changing the lives with disabilities and their families. before the compassionate program is in place some folks waited years for services to help their loved ones with more independently. help with things like getting dressed, cooking meals, taking the bus to work but now our partnership includes 91 counties in the city of st. louis and serves 1300 people with developmental disabilities this year we will expand the persian improving lives and saving money over the long run that's what we can accomplish when we take that extra step to the [applause]

last year we realized it program that cuts the cost of prescription drugs for 215,000 missouri seniors and people with disabilities. and that lifeline was in jeopardy last year folks across the state came together to protect these laudable citizens and my budget continues full funding for that program. that is what we can accomplish when we take the extra step. [applause] working together a to get that extra step we achieved a lot for our state at the polis to become partisan gridlock hasn't taken hold and misery. but we have more work to do. it certainly includes the lives in the budget and holding the line on taxes and putting the work strategy in place to create jobs and keep our economy growing. that includes record investment k-12 classrooms, keegan college

affordable and helping all children achieve their dreams. and it also includes passing a strict campaign contribution limits. [applause] [applause] i'm going to keep doing it until we get the law changed. when one person with an ax to grind can make an unlimited contribution to advance a narrow agenda, when the lobbyists for the public interest can tip the balance of an election, the very foundation of our democracy are at risk. unlimited contributions are overriding the will of the people come and undermining the principal of the free and fair elections. misery need strict limits on campaign contributions and this is the year to get that done. [applause]

i've grown up in the soda and learned a lot about public service of the kitchen table my parents were committed to our community at the public service. my dad was the mayor, mom serve on the school board and our town when folks needed help they would call the house. usually at suppertime and we didn't have the no call list back then. whatever the complete or the request, i don't ever recall hearing my parents asked. are you a democrat or republican. did you vote for me? that's not what public service is about. when you hold public office, you represent everyone. we saw the best of the public service and action in every corner of missouri last year. but one man stands out as a

shining example. his name is cj. dr. houk is the superintendent of the joplin schools. the tornado damaged or destroyed ten of their buildings. joplin was left in ruins. c.j. died at the schools didn't open on families with start to lose count. it wasn't about to let that happen. so, c.j. rallied his forces, parents and teachers, students and teachers come carpenters and plumbers and an army of volunteers. in at just 54 days the turned and and the department store at a shopping mall into a high-tech high school. not only did all of the joplin schools open on time, nearly 95% of the students showed up on the first day. folks, that was simply amazing to see. please stand and welcome c.j..

[applause] [applause] public service matters. what we do here matters. but in the world of term limits, skeptics say we can't get much accomplished. in the world of tighter partisanship, cynics say we can't find common ground.

to them i say just watch us. whether you are from a big city or small-town, whether you make your living on the farm or in the lab, whether you are a democrat or republican or independent or none of the above, we are all missourians first. [applause] kuran missouri we are not defined by our differences. we are defined by our shared values to the values that gives us the strength to face whatever tomorrow brings. with faith and optimism. there is a love of uncertainty in this life. we can't control the weather, we can't always see what tomorrow

will bring. but one thing is clear. to the storms and floods in harm time comes the people have never given up. even in our darkest hour, this bid will prevail. and when people of good faith and good will work together, nothing can stop us. so together, we will continue to balanced budget without raising taxes. together we will continue to create more jobs, better schools, and more compassionate communities. and quinton, i pledge to you that we will continue to work together to take that extra step and keep our state moving forward. [applause]

it's an honor to serve as your governor. i'm grateful for the opportunity that you've given me and for the trust that you have placed in me with your help and god's grace we will continue to show the strong leadership to missouri to brighter days ahead. it to each and every one of you and all missourians, thank you and god bless. [applause]eches about 30 minute.

>> thank you. it's good to see all of you. lunch must have been good. everyone is smiling. the number of people attending this event has increased every single year, and i am told today that we have 1,340 people here. give yourselves a round of applause. this is fantastic. [applause] i am wondering how we managed to squeeze at least a few more people in every single year, and then i remembered we lost a million pounds. we are smaller. we can fit more people in the room. the benefits of a healthier

community only continue to multiplied. we also have a lot of new faces in the audience this year and the census bureau can explain why we have people moving to oklahoma city from all over the country. so welcome. we have for people moving here from texas than are moving to texas. [applause] and the number of californians moving in here is quite refreshing if that includes you we are glad you are here. i don't know why you felt like you needed to bring your earthquake with you. but what ever. [laughter] and i also know that many of you are here as long time and residents of oklahoma city and you have seen the improvements, you share my pride, you share my enthusiasm. so to everyone, welcome to the state of the city address for 2012. [applause]

one thing i enjoyed about this event is getting to properly think some people who do so much throughout the rest of the year to help drive our economy and help improve the quality-of-life in oklahoma city. this is a chamber of commerce event, and what everyone who works on the staff of the chamber please come stand so we can show our appreciation. [applause] lilly and carl and everyone standing, thank you very much for everything you do for us and we have the best city council in the united states with us here today. eight individuals who give generously with their time and their expertise and members of the city council will call your name if you please stand and i called a total of them are here but i think most of them are and hold your applause until the end gary marrs representing the world won. ed, ward to, larry mcentee, ward

3, pete, ward 4. meg representing board six. scaap kelly, ward seven and pat ryan, ward 8. kolevar city employees that are here today also stand okay. now, anyone who serves on a city commission and advisory board and oversight board, and a match three subcommittee or one of our trusts, if that fits any of your categories, please come stand and now let's give our council and city staff and committee volunteers a round of applause. [applause] an amazing a group of people. you may recall last year i spent quite a bit of time talking about all the national acclamation that we were

receiving. we were receiving honors on so many best of list this seemed like a good idea to take stock and mentioned as many of them as we could. this year i want to mention just one list and then i want to drill down and kind of explore what it might mean. last month, the urban institute took a look at the 100 largest metro areas in the country and ranked them for economic security. now, economic security takes them into consideration and for factors, unemployment, the trend in your housing prices, the overall price of your housing, and the share of homeowners in your communities that are having trouble making payments. they call it economic security. it's kind of an indicator of your community peace of mind. well, we did pretty well. in fact, we were ranked number one in the country in economic security. [applause]

we were the only city in the united states to receive straight a's in all for categories. as a congratulations. this past week the new national data on home sales released for oklahoma city and tulsa are on the list of top housing markets in the country. we are highlighted both for affordability and increased sales. in other words, it doesn't matter if you owned a home or if you need a home, oklahoma city is a good place to be. i feel one way that economic security in tracks with our current economy is that it helps create consumer confidence. and i remember back in august i was reading a national business magazine and said that consumer confidence was at some level of a historical low. people throughout the country reluctant to spend money and it

makes sense if you were concerned about your finances, if you don't have economic security, it's hard to write a check for a discretionary purpose. that very same week that the u.s. was experiencing a low point in consumer confidence, we in oklahoma city opened a new outlet mall. do you remember what happened? 160,000 people showed up. the turnout shattered oil industry records for an opening weekend. when people have economic security, they are willing to invest in new products and services. and the people that build those products and services are likely to expand their business and higher new people. let me tell you about another illustration of a driving economy. it's a dynamic factor in consumer confidence, and that's construction. when large public companies are

investing in their infrastructure like devin and chesapeake foothill action con entel entel resources, all the lobby to name a few, when people see the bulldozer and grain necessary to build a new interstate highway, went downtown seems like a series of orange cones -- [laughter] when you are constructing new libraries and schools, when there is construction at the zoo and the river, when the dirt is, people realize that the local businesses and their local governments are investing in their future, and there may be no better way to visually fuel consumer confidence than construction. from a revenue perspective, our cities and a very envious position. most cities in the united states are still trying to get back to the pre-recession levels. we have been above our pre-recession levels for over

two years. we are still reporting record revenue. tourism is getting better and better. the brand continues to grow. the performing arts community is attracting visitors, our museums are getting national attention. in 2011, exhibits like passages brought tens of thousands of people to oklahoma city. new hotels are opening, and i am especially encouraged by the progress made on the funding aspects of the american indian cultural center. and i look forward to the day when that opens and helps us a history of our proud heritage. outside of tourism, don't look now, but the aviation sector and biomedical center are thriving. higher-paying jobs are coming by the thousands. and in the last eight years, over 80,000 new jobs have been created in our metro economy. [applause]

our position relative to the world economy is much similar to last year. we should not and we cannot ignore the fact that many of the world's financial markets are weak. and as good as our local economy is, our economy would be doing even better if the national economy and the world economies are doing better. so, here's my take on our local economy. knowing what we know, and knowing that you can't ever be sure of what calamity might be just around the corner, we have every reason to be optimistic. we are attracting talent, banks are gaining confidence in the ability to support new projects, or population growth and our per-capita income are going about rates that exceed the

national average. on the flip side, we need to continue to diversify our economy, because as much time as we spend investing resources on creating jobs in mediation and the biomedical field and manufacturing, the energy sector continues to multiply and is getting larger and larger. is a really good problem to have. but we must make sure our economy looks at and encourages other market sectors. also, remember that we have three fundamental advantages compared to most other major cities that we inherited from past generations. one, we have a large air force base that gets great respect from the pentagon. number two, we have three interstate highways attached to our city, and number three, we are the state capital. now, these three factors were great accomplishments by leaders

long gone. tinker air force base was born as a great example of the ongoing relationship between the city hall and a local business leaders. the fact that we give to the interstate highways going all through our city is not an accident. our leadership of nearly 100 years ago worked hard to ensure that major roads lead to oklahoma city. and as for being the state capital, we had to steal that in the middle of the night. [laughter] and we are not going to give that back. then there are the elements that we in this generation have created. the factors that have started to set our city apart from others to get one, investments in infrastructure that are unparalleled. number two, a thriving arts and sports community. and number three, a general culture of the entrepreneurship,

face and diversity. so in the coming years, held are we likely to fare in our ever-growing competition with other cities. how are we likely to compare with our peers for jobs in the quality-of-life? i can tell you sincerely i wouldn't want to be them.

wellness centers for seniors, the city county board of health is building an entire campus of health-related services. overall, it is a lot attitude to prioritize health and design our infrastructure to interact with people at the same time it interacts with cars. and three, we are doing better on the awareness that. our website, and the city is going on a diet.com attract a 47,116 people to sign up and pledge to lose weight and you may have noticed last week we reached our goal of 1 million pounds. and over that for years, we've been able to make giant stride in getting the word out about the dangers of obesity. as you can imagine a 47,000

people averaging over 20 pounds apiece we have a member success stories stories from the campaign. i want to draw your attention to the story of twin brothers, and dan and on evidence, oklahoma city police officers in the past year, the pastor dan lost 120 more pounds and don lost 130. [applause] that's. between them, they last over 250 pounds and they are sitting right down here. could you guys please stand quite [applause] great examples of taking control of their lives. and i'm sure was not easy, but when we made the announcement at the zoo about the million pounds, they stood up and spoke and said it is that age-old combination of diet and exercise. it is not tricky and we are proud of you to run multiple levels.

congratulations. and two days ago i received an e-mail. it says, dear mr. mayor, congratulations on the city hitting the 1 million-pound mark. it takes a lot of hard work to lose weight. i do miss nathan carter harvey from guthrie. i want to sign up on the website but couldn't because i'm only 12. just one year ago i was 206 pounds in the sixth grade. i was so tired of being picked on and tired of in myself the time i played some xbox 36 t. and started playing more outside, playing sports and riding my bike. i stop drinking pop. i stopped eating as many chips and candy and took a course at the ymca and i started losing weight. in the morning last, the better i thought. but i thought, the harder i worked in the more i lost. today i am 120 pounds. i have lost 85 pounds.

i was the center for my junior high football team this year and best of all now i have lots of friends and feel really good. have a fun day, mason carter harvey. and mason is here with us today. it may sound, which stand? [applause] annie got out of school. to come here the mayor talk. [laughter] what a day. overall, there are three fact years that should make us up domestic about improving our health statistics. rising income, improve infrastructure and better information. what at the end of the day, it's still going to come out to us. it's still going to come out to action in our schools have improved menus. there are signs that grocery stores with fresh fruits and nationals are more likely to move into underserved areas, but

better access on is not going to be enough. we need a better attitude. and when you think about it, there is no reason we can't do better. we have placed higher and higher standards on this community time and time again. we must continue to place higher and higher standards on ourselves. our procedure with wellness from the groundbreaking work at the city county board of health chewer infrastructure changes is drawing national attention as a model to other communities to consider. a round of applause as they continue to prioritize health in this community. [applause] one advantage of the city's progression is that we are better able now to keep and attract the most talented young people in the next generation. young people with choices about where they are going to live.

many of them are choosing to live here. and speaking of the next generation, we pride ourselves in oklahoma by providing athletes. most of us if we gave much thought at all could name local athletes that have come from oklahoma and gone on to produce great things at the college level or professional level where the olympic level. but what our young people are producing right now is historically unprecedented. you can start at the college level for granted and we do not high school ayn rand wrote that oklahoma both for my metro, both among the top college at rates in the country. at the professional level in the last two years, we have watched sam bradford become the number one pick in the nfl draft, blake griffin the number one pick in the nba draft and this year in baseball, not canned became argue with the best player national league. a descendent eight-year contract

for $160 million. having three of the best young stars in pro baseball, football and basketball simultaneously is more than just remarkable. in the last few years, all we have emerged from our playground to the greatest stages of the world of professional sports has to offer. meanwhile, the kids that are using our playgrounds today are getting new schools, new classrooms, new gymnasiums, new technologies, all because of your investment in maps for kids. 2011 was a big year for maps for kids. 2012 will be an even bigger year for maps for kids any think about it. the school severity been completed. there is currently construction taking place at 29 more schools and all of those 29 will be

completed by the end of the year. there are seven schools in the design phase that will go to business spring. the downtown elementary school is in design. so it could be under construction a year from now and in the final project will be the administration building. more and that will unfold as time passed. let me show you a picture that i think speaks loudly to the quality and integrity of the program. this is the auditorium at capitol hill high school with maps for kids dollars as turned the building to its former glory. now let's switch over to maps three. we have seven citizen must subcommittees passed with providing direction on the project. they are making recommendation to the maps three advisory board and those recommendations go to the city council. now it's most of you know, with the maps model we pay for these projects with cash so it takes a

while to collect a penny until the project, but it should be interesting to watch over the next two years to say the least. here's a status report of most start with the senior health and wellness centers to expect poorer facilities to be built. the first centers in the process to be developed right now. in 2012, this year look for the first site to be selected in the first building to be designed. construction on the first owner should take pace in 2013. the jogging and biking trail committee has been very busy. i've been concentrating their work on a trail that will connect the oklahoma river. construction they will begin in 2013. the sidewalks that come with maps we will be in two phases. subcommittees working on a master plan right now. construction on the sidewalk should begin no later than 2014. in the meantime you'll see lots of other sidewalk being constructed around the city, but most came from the bond issue we passed in 2007 and not for maps.

the convention center is the biggest of the projects. the site has been somewhat. i would expect the land to be acquired sometime later this year. the streetcar subcommittee has been very busy. the santa fe station has been selected as the site to the multimodal hub and this year will begin the process of acquiring that size. 2012 should be a year a year and missed a lot of the engineering work considering the streetcar is accomplished. the subcommittee is working on a downtown park are making good progress, planned acquisition is going well. this year expect some steps towards developing a master plan. we are also going to be bringing in the environmental engineer to start working on the upper part. the subcommittee looking after the river improvement is on three different bases. the lighting, wind streams in the whitewater facility in a lot of design work should be completed this year.

finally the fairground, the consultants hired to refine the master plan. i expect some of that work will start to emerge before the end of the year. as for project 180, i assume i don't have to tell this group all about it. you couldn't have gotten into this building without seeing. it involves parks and was downtown. over 10 miles of new roads have hardy been completed. 557 trees have been planted. 11 new intersections upon the traffic signals and crosswalks have been completed. over 200 bytes have been added for pedestrian traffic in over 100 new flights have been sold for vehicles. 2011 was in fact a big year for completing or nearly completing several big projects. the myriad botanical gardens has reopened and is living up to all the expectations. raise your hand if you a chance to visit the myriad botanical gardens in seattle at the improvements?

is quite amazing. the entire city is very proud of it. the improvement of chesapeake energy arena continues. the sections on the arena completed our significant upgrade over what had originally. large expansion on the south with site content is under construction and will be ready by next season. the oklahoma city sky dance bridge is virtually complete. it is a truly iconic piece of art will be visible to over 100,000 visitors a day. and of course, the new section of i. 40 itself is in the final stages of completion. reality ribbon-cutting for the eastbound lanes earlier this month. how about another show of hands. how many of you have already been on the new highway? okay, virtually everyone here. it looks fantastic and i know kerry ripley is here today. thank you for you in your stats are come on this. we appreciate the department of

transportation. westbound lanes will be opening soon and then we will start to work on the boulevard that is going to replace the old alignment. the boulevard is under engineering right now. all told, this project is the largest civil engineering investment in state history and once again, let me think the state department transportation and please show your appreciation to our friends. [applause] on the oklahoma river come the chesapeake finish line power is completed. former elements of what is becoming the finest venue in the world for the sports of growing, canoe and kayak. at the fairgrounds, more investment in the porsche business. we remain the horseshoe capital of the world. 2011 was probably the biggest year we've had for retail in a long, long time. the other shops of oklahoma city upon august the here sunflower market open in august and whole

foods opened a 35,000 square-foot store n-november appears to officials with whole foods tell us it was one of the top launches in their chains history. and as for event, well, it doesn't get much bigger than the nba playoffs. that better advanced all the way to the western conference finals in 2011. [applause] simply put, nothing puts our city's brand under the worldwide stage in a positive manner better than our basketball team. soon after we departed the nba playoffs, espn is back in town for another one-week run at the women's college girls. millions are now watching these answer hall of fame stadium in last year once again we set another attendance record. and finally mentioned at the beginning we had a lot of new

people arriving in oklahoma city. not all of them are people. at the zoo, train to come our first-ever baby elephant was born on april 15. she waved 304 pounds at birth and she eventually caught up and has been eating nonstop ever since. she now weighs nearly a thousand pounds. malee is doing quite well. our new house and exhibit overall is quite incredible and there is rex. rex is our new african oliphant. he is 43 years old. he has just moved here from canada. i tend to think he is quite handsome. i like his rugged good looks. it doesn't matter what i think.

we are hoping that malee's mother and aunt think he is equally as handsome because he would like to see them have a brother or sister or cousin real soon. sosa eight to keep supporting one of the world's greatest news. i mentioned earlier that we have created a 80 or have a talented twentysomethings adoptions about where to live are choosing to live in oklahoma city. while you're eating lunch today, the oklahoma city under an ounce russell westbrook ascended new long-term contract oklahoma city. [applause] so congratulations. we appreciate everything you do for us. thank you.

well, thank you. it is an honor to be here tonight and i would like to start by thanking several individuals and groups. first off, i want to thank the speaker of the house. bolger. second i would like to thank my partner in this endeavor, lieutenant governor calley. [applause] he is still speaking to me tonight after last night. i'd also like to think another key part of our team's success, senate majority leader richardville. [applause] like to think senate majority leader whitmer, minority leader. [applause]

sorry about that. i'd like to thank house democratic leader richardville and who is feeling better. the members of the supreme court, welcome. [applause] attorney general schuette. [applause] secretary of state, johnson. i'd like to thank all members of my cabinet. thank you for being with us. and ladies and gentlemen of the legislature can't thank you for being here and thank you so much. [applause] like to thank all of my fellow public service. thank you for your service to

our state. [applause] and i am happy to see several representatives here tonight, but to give special thanks to the men and women of michigan serving in our armed services. [applause] thank you for your service. this is truly something special. i want to thank all the citizens of michigan. last but not least i want to give special thanks to my family. [applause]

in my first state of the state address he spoke about the need to reinvent michigan with job wine themed jobs. tonight is a continuation of that journey. in the 1800s, we have the natural resources area. chicken 1.0. and the 1900s, we had the industrial area. michigan 2.0. this century, it is time for the era of innovation, michigan 3.0. [applause] we are on that path. we are getting it right and we are getting it done. [applause] to reaffirm the need to reinvest michigan, let's look at the past. michigan had been in decline for several decades of the last decade been particularly

difficult. we were essentially tired and broken. in 2011, we made large strides to make michigan a great state again. we came together and worked with relentless positive action at a dodgier space. while we should be proud of the progress, much remains to be done. so with that, but they get started. first, let's review a number of key measures on our statewide dashboard. there are 21 measures in five different areas you don't panic. i'm not doing all 21. but i did want to highlight five of them. for this at home, find the entire dashboard at www.michigan.gov/dashboard. number one is an exciting one. our unemployment in the last 12 months has strapped from 11.1% to 9.3%. [cheers and applause]

in november we dropped below 10% for the first time in three years. in fact, added nearly 80,000 privacy or jobs during 2011. we've shown improvement in the united states averaged and in particular has mentioned the travesty that it it has been higher-paying than the average for the rest of the united states. [applause] at number two is finally have it done as well. obesity in our state has increase one percentage point to 32% of our population. this is a disturbing trend.

everyone knows that health care costs are exploding and unsustainable in addition to the human obesity. the key to the solution is not government, the personal responsibility. we need to work together to do a better job on obesity. [applause] number three, college readiness increased from 16% to 17% while the 1% increases than accept the vote. we need to be 100% college and career ready for our young people. [applause] number four, our bond rating. our actual ratings didn't change, but we are moving in a positive direction. the agencies has increased other from neutral to positive from a good thing we are heading in the right direction.

[applause] number five, our crime statistics, statewide have improved. while this is good, we have four of the top 10 cities on the most violent crime list for the united states. flint, saginaw, pontiac and and a straight and in 2012 we are going to focus on this resolve this issue. [applause] i'd also like to mention some non-dashboard indicators of batters they. first, the automotive industry has made a major comeback. last week is that the north american auto show and i was proud to say that detroit is still the undisputed auto

capital of the world. [cheers and applause] the next group i am going to mention has been to us to not talk about and forgotten, but they are critically important. they have been the unsung heroes of our economy and that the people in agriculture. over the last decade, they've been one of the shining lights for our state. we need to remember, we're the second most diverse agricultural state in the nation will continue to grow into better. i want is a thank you to everyone in the agriculture industry. [applause]

finally, tourism is on a positive path. your michigan is working well. now we just need more snow. [laughter] as an extra now, i'm very excited about dropping a flag on the 500 couple weeks and one of the premier winter events in the entire nation. [applause] [inaudible conversations] and now i'd like to give special recognition. i am pleased to say can muster is with us today in the audience. dan, stand up. [applause] most of us know dan is representing the grand hotel on

mackinac island of the tuition happy birthday. 125 years and going strong. [applause] i also want to mention our team has been working with fatter caspersen and representative tukey among others on exciting opportunities and 99 the european timber industry in northern michigan. [applause] we are rebuilding michigan's image is a great place to do business. we had a very successful trade mission to asia were delivered on substance now so it is time to spread the message and that is why i'll be making trips to europe in a shed to talk why michigan is the place to do business in the world.

[applause] i want to mention one other index that doesn't get mentioned often. for the past six years, with more people moving out of michigan then we had moving in. in 2011, we stop at track. [applause] now tonight i am excited to count captain john james said the united states army's people among us who have chosen to call michigan home because they see a bright future here. captain james, where are you? stand up, please. [applause]

now while captain james has traveled the world and been recently station in michigan, his military service this year he has chosen to shanties a teacher in the family business, a 40-year-old business the chance group international and detroit. the chance group international is a very successful organization authority without the detroit wayne county port authority to be part of the revitalization plan. because of the partnership, the company estimates 15 new jobs this year, so we are pleased to captain james is here tonight along with his dad, john and his brother loren. thank you and the gentlemen for being with us. [applause] so now let's discuss 2011. both in terms of accomplishment,

initiative started we need to finish and challenges. 2011 was the year to attack two attacker legacy problems and change course for downward to operate. the key targets were to agree to an environment that encourages job creation and create a financially sound state government. i truly want to think you partners in the state legislature. through partnership, we accomplished a lot. we had 323 public tax in 2011, but more important than quantity with quality. thank you so much. working together we passed a financially stalling budget. [applause] we had to address a billion and a half dollar deficit is

demanded tough decisions and i appreciate all good sacrifices that people made. michigan is just like a family. in tough times we have to find ways to live within our means. working together though, we stop the practices of using budget gimmicks were taking short-term actions that harm us long-term. [applause] even in these difficult times, we make payments towards michigan's long-term liability costs. in addition, may the first deposit of michigan's rainy day fund since 2004. the fun had run onto a balance that only operate state government for 30 minutes. the last thing as this is the fastest budget process in the last 30 years, which is a tremendous help to her local government schools. the thank you so much for the hard work.

[applause] i really appreciate the extra support of our appropriation shares. senator cron and representative maas, thank you. next was tax reform. if the tax system has three basic elements. simple, fair and efficient. our systems failed on all three of these principles for both business and individuals. so working together, we eliminated the michigan business tax. [applause] as many of you have heard me say, the michigan business tax

was just plain. in addition to feeling all through principles, it was a job killer to impose an unfair double tax burden on our best job creators for small and medium-size business people. although it didn't disappear until the end of 2011, many businesspeople already gained confidence in our future and have taken action. i want to recognize one example. one example is in the mainstream america's space and a peanut, which is a nighttime district and how niemann is with us tonight. al, standup, please. [applause] the party added five employees and expect to hire 100 more because of these reforms. thank you. [applause] been on the michigan business tax want to give one of the

special recognition. and that is lieutenant governor transfer who worked tirelessly on the tax reform issue. [applause] we also completed a major reform of individual income tax system. we changed the personal taxes into one defined by fairness, one that doesn't treat anyone at it than anyone else. we've leveled the playing field to give all michiganders a fair shake to the long-term. [applause] remained major improvements with local government reforms that encourage more accountability and transparency i'm a better cost management of health care costs and service sharing between communities. for example, we now 435 just jurisdictions doing dashboards. we created a $5 million pool to

create innovative collaborations between governments. the first word westergren wrapped its length integer processor income tax returns. the $550,000 awards they received will result in over $2 million in savings over the next nine years. [applause] this exercise and best practices due to the great partnership with the legislature and especially like to thank represented or clement for effort on the. [applause] we completed much of her education reform package. as i said earlier, our current standing of only having 17% of students being college ready is unacceptable. our children are our future and we need to make sure they are not just college ready, but korea ready. we need to start early childhood

in spanish with lifelong learning, whether it is college or vocational training. we launched the office of great start to focus on our youngest children. i want to thank the foundation committee for helping championship early childhood education. [applause] teacher tenure reform is accomplished. now we have a better system to support our teachers come to recognize their critical role in create an that supports their success. [applause] we provide our students and parents with more school choice by removing the cap on charter schools. clap not now we need to make sure we are raising the performance bar on all schools.

[applause] we have worked to complete. i encourage the legislature to complete dual enrollment and cyberlearning. i also appreciate her support of legislation for the educational achievement authority, which is our initiative to turn around our poorest performing schools. our goal is to educational achievement authority educating children by this september. [applause] in september i gave a special message on health and wellness. as i mentioned in the dashboard, again the most important item would be taking personal responsibility for her own wellness. as you know, i signed up for my own personal commitment. in six pounds towards my goal of losing 10 pounds, but still have some work to go. i ask all michiganders to join in this effort. this isn't about who's the biggest loser.

this is how we can all live together. i asked the legislature to continue their work on autism and the michigan health marketplace. there is no medically proven. 27 states have evidence these therapies. the human and financial costs of autism are too high to address this important topic. [applause] the michigan health marketplace and our effort to get people the tools they need to make informed decisions when selecting high-quality and affordable care is to have a health care equivalent of travelocity. burma is the last time you

called by their lands to book an airplane ticket? if we fail to act in a timely basis, we are in a path to a federally imposed system defined by people who don't live or work in our state. i urge the legislature to seize the opportunity for michigan the distance. [applause] i am pleased to announce a new program. pure michigan partnership between kerber, mission or association health and hospital associates to address childhood obesity. it is a nutrition-based program to give parents and caregivers the information to raise happy healthy kids.

we also took great strides this year to protect the most horrible citizens. it reduces the fastest growing crimes in michigan. he gives from her volatile special witness users, laugh advocates to speak on their behalf when they are unable to establish a senior alert program. i urge the house to the package of bills. [applause] michigan is on tonight at 700,000 men and women who have served this country. many of access to va health care but are unaware or choose not to use it because of a cumbersome

process. today only 19% of our veterans use va health care. we will continue to work with veterans groups and the federal government to ensure our veterans get the benefit they earned and deserved you like to thank the legislature for their support in this area, especially representative zoran and callback. thank you. [applause] just as individuals cannot neglect their own health, the state cannot afford to not click the help of our physical infrastructure. a bipartisan act of bills will introduce to create a system of roads and bridges for the 21st century economy. one illustration of our system is a road funding formula in

1951, over 60 years ago. even more important, studies have shown we are under investing transportation by upwards of $1.4 billion a year. almost no one in michigan like the rosetta stone. let's solve this problem. irish legislature to begin hearings on this important issue. [applause] now another persistent problem that we face is their lack of a truly regional transit system for south michigan. we are working on partnership with the city of detroit with the four surrounding counties in the u.s. department of transportation to develop a new rapid transit system, a bart to

service the entire system. it is 40 years overdue. i encourage or support. [applause] now the final rashers on talent. this is truly the last but not least. our greatest asset is our talent. our people. tradition in the public sector has focused on talent for workforce development. this is a good mouse. we can minimize waste and that real results for people that are lamer careers are and will be with our people and their skills that they have and that they need. we started this process in the fall of your michigan allen cannot. i encourage young people and anyone looking for a job or career to go to my talent to

work. this new portal is to get our citizens better connect it. you're nearly 70,000 jobs on this site. if we filled all these positions, our unemployment rate would drop by another 2% almost. [applause] and many of these are very good jobs by the way, such as balder account or nurse. again, this is more concerned the job site. it has tools for letting a look at their skills for various careers. please check it out. i talented jen also emphasized the unemployment in michigan is far too high for veterans, for veterans of iraq and afghanistan, iran played a rate was approximately 29%. this is the right and we need to

act. i encourage all employees to place a priority on hiring our veterans. [applause] we need help from our federal partners to create integration opportunities. having individuals both diseases in michigan with create new jobs for citizens. in michigan we need to remember immigrants were the founders of doubt and masco. we are going to be working on a separate with support for michigan university and michigan reseller council is trying to engineers union and the teamsters. i appreciate all of their

support and hope others will join us in this effort. [applause] in addition to the special messages to attack other important actions. first they begin a dialogue on reducing taxes on industrial equipment which needs to continue. michigan has been a world leader in manufacturing and we want good job growth to happen in this important economic there. now this conversation needs to be done in partnership with our local jurisdictions. since it's a critical part of the revenue. let's look for a long-term solution that generates more and better jobs while properly supporting our communities. [applause]

we accomplish major reforms of our state pension and retiree medical system. these reforms moved or benefit structure to better align with the yours so we weren't many good place to work but the same time reducing our long-term liabilities by more than $5 billion. client we have also committed to help them the most inane. government always needs to consider human side effects. all children need a strong loving opera, especially those in daycare. so we strengthen our commitment to children's services in

michigan. other children secant apt to say my last year, department of human services is able to play 70% or more than 2500 of these children at a permanent family. [applause] the more children become available every day for adoption. then i'd like to recognize one family. the moral and family of canton is a wonderful example of the joys of adoption are if the moreland family could stand up, please. [applause]

let me tell you about the moreland family. lamar and holly moreland ardea to beautiful biological children, derek and hunter. but through their work in the judicial and legal system, lamar and holly did they wanted to expand their family through adoption. last fall, they're a match of the michigan exchange and had 12-year-old dexter and 7-year-old haley. everything worked out. dexter and haley had made the adjustment and are doing well and cool. they have found a pair for every family. clap back thank you. [applause]

[applause] [applause] which struck a special which struck a special chord in my heart. one was the extension of foster care services to age 21 and set of h. 18 for young adults who would otherwise age out of foster care. this change will make a big difference in their young lives. they are ready of providing for special support for 141 young adults in this age group in the scholarly program. [applause] the second public act that is going to match it was probably among the most emotional moments for me personally at the bill

signing and notice the passage of the anti-bullying law. there is no excuse for bowling. after 10 years of effort, we take legislative action. as a person who is bullied when i was young, i say thank you. [applause] now, not all went well or smoothly in 2011 and i would mention to areas in particular. first, we did not succeed in moving ahead with the new international trade. we need to continue our efforts on this topic since it is not a bridge issue. it's a jobs issue. [applause]

one third of the north american economy can be found by circling chicago to montréal are right in the middle. let's not let the special interests hold back a great opportunity for job creation, especially since the project can be done without any michigan taxpayer dollars. [applause] second, numbers of our cities and schools are suffering nature of financial distress. this problem is not a new one, but it's an important topic we should fully addressing 2012. when i came into office, with six cities or school districts under emergency financial management. last year when my join the list. now there is a lot of speculation as to why jurisdictions got in trouble.

the overriding common feature is that they lost population without a corresponding class structure. but the long-term answer is not simply about cutting costs. it is how to create a financially solid foundation said that growth can occur again. [applause] the state's role is still jurisdictions sought their own problems and in that regard we pass the fiscal accountability act, often known as pa for. address two main issues missed by his predecessors reapers helps communities identify and solve problems as soon as possible and prior to a financial emergency. second, when there is a financial emergent date, it is intended to quickly and effectively solve problems of the community can get back on a positive path.

[applause] some people may wonder what we are talking about with the term financial emergency is used. think about a situation where employees are not going to get their paychecks. suppliers are not getting paid. bond payments are being menaced for financial statements cannot be completed. these are critical problems. the new one is helping. [applause] and tonight, i want to let any jurisdiction that struggling with finances to know we are committed at the state level to be a supportive partner to help them resolve their challenges. and tonight i would like to recognize mayor dean for being with us. would you stand up? [applause]

it is important for all michiganders to understand having a thriving, growing detroit is critical to all of us. [applause] detroit has many exciting developments going on in resolving the city's financial challenges would clear a path to a bright future. [applause] i want to thank the foundation community for their support of our office of urban initiatives

are this office is serving as their key resource interfacing with goodies. the last time i want to attack about regarding tony levin is offered for regulatory reinvention. it's underway will be continuing into 2012. so far, we've descended nearly 400 obsolete computers and burdensome regulations. [applause] native regulatory environment that's conducive to business growth and job creation while making sure we're properly protect our citizens. [applause] at this year we'll continue our regulatory reinvention by eliminating most of them plato makes sense. i was going to share three simple examples with you. first, we have a rule mandating the size of a barbarous wastebasket and how many times it must be empty. i just got a haircut.

my barber wasn't aware of this particular rule. i can't, we have a rule requiring child care providers to smile. finally, in the shouldn't be a surprise and i appreciate their leadership today, but the department of environmental quality has 28 separate requirements for outposts, including a requirement that the seat not be left out. [applause] i don't know about you, but i have a higher authority at home. i don't need the state telling me that. [applause]

is going to be an interesting evening. [laughter] ..

operates and the jobs component. it will focus on the places of the greatest need. second, in the fall i will give a special message on the energy and environment we need to be more strategic by focusing on the intersection of job creation, of portability, science and sustainability we to continue michigan's leadership in protecting the great lakes, one of the world's greatest natural assets. [applause]

third i would like to work with the legislature how to improve the law was related lobbying, campaign finance and ethics for both state and local government. for example, we should have more frequent and better disclosure of campaign contributions and we should have stronger rules governing employment people who negotiate state contracts while in government service. [applause] on the implementation of the government we will have two levels. one track will be focused on state government itself and how it operates.

the second track will be as a supporting part more to our local jurisdictions. the four principles of good government will be how we operate in this way. and let me share those principles which you. first, we need to deliver outstanding customer service to our citizens. we need to do this by creating an environment for job creation, create a great quality-of-life, and provide a safety net for those most in need. second, we need to deliver real results for real people and there are three components to this principle. we need to show you our citizens measurable results. the - porter spoke of tonight is just the summary. we are instituting a comprehensive system that includes dashboard's which are extra measures and scorecards which our internal measures. we need to continue to work on being effective and efficient. we need to eliminate government

waste. and we need to be thoughtful in all of our actions. we are here to serve the people. and on this topic and pleased to say we were successful in the collective bargaining with our union employees to read became a winning solution together. [applause] in particular are looking forward to our joint effort to better in power our hard-working state employees of delivering better customer service to our citizens. [applause] third, we need to continue to deliver on both short and long term financial responsibility. this year we began a positive role model for the rest of the country on this topic. we closed the deficit and started paying down our

long-term liabilities. we were a clear contrast to the federal government and a debt ceiling crisis. i encourage them to look to michigan as the place for answers. [applause] i encourage the legislature to work together on a repeat performance of sound budgeting. we don't face a deficit this year which is great. but let us show real leadership and how to strategically invest and save for the future and not simply spend money because it's there. [applause]

the fourth principal of the good government is to recognize the state government role is to be a team player and not a solution on our own. we need to continue to serve as catalysts for success having all of us work together and win together. as i've often said, our role is not to create jobs but to create an environment that encourages job creation. [applause] now live outlined these philosophies for good government i would like to share one example that we actually saw in 2011. the michigan state police got rid of their old service delivery model the was based on bricks and mortar and geographic boundaries and instead focused on where the crime occurs. they reduce the total number of state police from 62 to 29 making the patrol vehicle easily

mobile command post and putting nearly 150 sergeants back into the field protecting and serving you, our citizens. thank you. [applause] triet now i want to share the two most frequent pieces of advice. i received before i took office. the first one was to be bold. simply fixing michigan wasn't good enough. the second often came moments after the first which was don't set expectations too high. i accepted the first and rejected the second. [applause]

we are being bold and reinventing michigan but it requires setting high expectations. you can only build a brighter future by setting a higher standard. in 2011, we set that standard and accomplished many things that many thought were impossible. 2011 was the year of building the foundation for good government. 2012 needs to be the year of implementing good government. [applause] i want to conclude tonight with a topic i've been talking about for years. it's our greatest opportunity. it's more important than any law or regulation. it's fundamental to the reinvention of michigan and it's become a great state again. simply put, we must reinvent our

culture. we are still too negative, many believe the best days are behind us. we need to be positive, inclusive and competent michigan holds a bright future for our children and their children. [applause] it's great to look back at last year and take pride in all of the things they were done. even these things conventional wisdom said we couldn't do. it's great to have our unemployment dropped to 9.3%. it's great that the auto company shared with me last week they will be high hearing in michigan in 2012. but we cannot afford to slow

down. [applause] we must maintain the sense of urgency that we share all of last year. we must finish what we started. [applause] i believe the greatest key to our success and michigan this last year was due to a philosophy of relentless positive action. no blame, no credit, just finding common ground and solving problems. i ask that all michigander join me in this effort together we will move michigan forward and become a great state.

god bless you and the great state of michigan. [applause]

>> thank you. amol global conversations [inaudible chanting] [inaudible chanting]

[inaudible conversations] [applause] >> i want to welcome you. [applause] [cheering] thank you. lt. governor, senate president pro tem, mr. speaker, our thoughts and prayers are with

you and your loved ones, and new mexico is pulling for you. [applause] democratic and republican leaders, esteemed members of the new mexico legislature, representative netz, chairman of the independent caucus. [applause] honorable members of the judiciary, tribal governors and the lieutenant governors, former governors, members of mexico's congressional delegation, distinguished guests, the state's first gentlemen, my husband common chuck franco.

[applause] my cousins are here today from el paso who told me they didn't fully realize was governor and they said it jokingly until they saw it on the view. [laughter] and to all of my fellow new mexicans, thank you for the honor of addressing you this afternoon. last year when gathered at this time, mexico was facing the largest structural budget deficit in state history. for years governments have overspent on the federal stimulus dollars dry up we had holes throughout the budget. the state of our state was one of financial crisis. we faced a tremendous challenge. many said we couldn't get it done. the we couldn't both balance the budget and still protect our priorities. we had a of vigorous debate. some felt we should have raised

taxes, despite the jobs that would have been lost. others felt we needed deep cuts in education and medicaid. i am proud of the fact that we were able to work together, the legislature and the governor. democrats, republicans we came together and found a better way. we protected class from spending and medicaid, and we did not raise taxes. [applause] public officials must never forget that we served the public not the other way around. that's why in a time of shared sacrifice, i felt it important to lead by example. we eliminated from the

governor's residence, cut salaries there by 55%. it worked out well. chuck evin learn how to make more than just bologna sandwiches. [laughter] and i kept my promise to get rid of the ultimate symbol of waste and access. we sold the state's luxury jet. [applause] we cut waste across the state government, we cut cell phones, got rid of them on essentials the cards, and the governor's office we slashed or budget and reverted over half a million dollars back into the savings account. cabinet secretary salaries were cut by 10%, and we dramatically reduced the number of political appointees. and together, the governor and the legislature hammered out a budget compromise that reduced

spending while protecting prairies and balance the state budget to the [applause] mexicans can be confident that we didn't lose sight of our priority along the way. over the past year, school districts throughout the state had to do more with less. but they did this by cutting administrative waste. and increasing the percentage of their funding that goes directly into the classroom. we protected health care for the most vulnerable, expanded child-care for working moms, food stamps for the elderly and disabled. school clothes for kids most in need. thinking about the state of the state last year, it gives me great pleasure to report to you

today that the mexico's financial house is back in order. [applause] we are no longer running a budget deficit. in fact, our historic deficit has now become projected 250 million-dollar surplus in one year. [applause] but a great deal of economic uncertainty persists across the country, across the globe. and too many people are still hurting we must move cautiously. we cannot go back to the credit card spending that contributed to the financial crisis in the first place that's why i propose keeping budgets flat for most state agencies rather than using a surplus to growth governor i

propose safeguarding at by using it to make targeted reforms for investments in our future to help struggling students to make mexico more competitive with job-creating tax reform. and maintain a safety net for our most vulnerable. my focus on the sprees' increasing state spending by only 3.6%. a population and inflation and growth in this state. as we continue to do more with less, we must never forget that our budget is a statement about our values. that's why my budget invests $45 million more in medicaid. providing health care for the poor and the disabled.

federal medicare cuts are threatening to close nursing homes, leading a patient some parents and grandparents with nowhere to go. we promise to be there and that's why my budget includes $8 million to keep that promise and keep those nursing homes open to the [applause] and exactly half of the new spending, $97 million is targeted for improving our local schools. [applause] but it's not just throwing more money if the status quo. it is an investment in reform. an investment initiative designed to get results yet

improve student performance. we took some very important first steps in education reform, just last week we announced the grade for the mexico schools that will continue to be fine-tuned and we work with the school district to finalize the results. by this summer every school will receive an official letter in a, b, c, d or f. finally, a school rating system that is uniquely our own. not a one-size-fits-all federal system, but rather an honest assessment of how our children are learning and improving. a way to identify struggling schools so we can get them the help that they need. i was encouraged last week to hear teachers, principals and parents say things like our school is so close we are almost there.

we can get a higher grade. now we must take the next step and take on the status quo once again. we know how essentials learning to read is for our kids. children have learned to read by the third grade, and then they read to learn the rest of their lives. when we consider this we must consider the kids whose lives it impacts. and what will happen to them if we fail to act. consider the child who just can't learn to read. think about him. his parents left him but maybe they are working long hours to make ends meet. so they can't read to him much at home. maybe his teacher knows he needs more one-on-one instruction but there is no after-school tutoring. so the little boy doesn't get the help. but we keep passing him on from

one grade to the next. imagine that child being forced in fifth grade and on to middle school. now he can read the word but it doesn't really understand it. so he struggles to learn of history, geography and science. when he can't meet the standard we don't offer him a hand up. we just lower the bar. sending him to the next grade, and sending him a toxic message that he is not capable of making the cut he is ashamed. he's frustrated, angry, and eventually he drops out. i encountered many of these kids as a prosecutor law when they were kids but when they were living a life of crime as adults. we know the children who can't read by the third grade are four times more likely to drop out.

and 80 per cent of all fourth graders, eda% cannot read proficient lee. as president obama's education secretary directs this issue talks about the mexico status quo, he says if you're students keep being allowed to leave the third grade and fourth grade without being able to read, you are not doing him any favors the if he's right, passing children who can't read from one great to the next is not compassion at. it is morally wrong. [applause] or we going to turn a blind eye to the fact that 80% of our fourth graders cannot read proficiently? are we going to allow this? if i say the answer is no, then

let's do something about it. why are we passing our children on when they cannot read? [applause] holding children back is not the goal. the goal is for every child to learn the basics and to identify and help those who struggle before the third grade. our obligation is to teach our kids to shoot for the stars. we build a child's self-esteem not by convincing them that failure is okay but by showing them that they can reach any goal. bye offering a helping hand when they struggle so they learn to never give up. to preserve your and to ultimately triumphed and succeed. because every child can learn regardless of circumstances. and frankly, is up to us to help

them. and here is how we will do it. [applause] here is how we will do it. my plan this year called for a 17 million-dollar investment in reading reform. teachers will assess the children early on, a kindergarten, first grade and second grade, and those students who are struggling will get immediate help in these early years. more tutoring, more individual attention. we will put more reading coaches in elementary schools and while we are on the subject of reading, let me say that helping our children learn is a responsibility that we all share. as governor i've read books to kids in over a dozen classroom's the past year. truth be told, as much as i love hanging out with all of you, reading to these kids has been my favorite thing to do as governor. [applause]

i've gotten really good at sitting crisscross applesauce on the floor with little ones. teachers need parents and families, family members and friends, all of us to be engaged. we must all accept the response of the. today i am encouraging parents, grandparents, aunts, uncles to read to their children and to help his special announcement. that luxury jet cost the state nearly half a million dollars a year to operate. now that we sold its, we can use that money on something else. i am proposing that we take that same amount of money and by every new mexico first grader a reading book of their very own. [applause] every child will get this book when they leave kindergarten so

that every family will have the opportunity to teach their children. every child will have a great book to read over the summer as they prepare for the first grade. as i mentioned, i am proud of the fact that our education reforms have been embraced only by democrats in the mexico but also by the obama administration. at the top of a lot list a say reform to reward our best teachers with higher pay. in evaluating teachers, we must measure the progress. there are students that began mastering the basics. that doesn't mean teachers with the most students get a bonus. means we must measure and reword progress. it's the progress that counts. the teacher who takes the kids three grades behind and get them out to greet level has arguably accomplished more than the teacher who has a class full of

overachievers. that is why i am urging you to support the teacher evaluation system that will identify these great heroes in our schools and reward them accordingly. [applause] there are also several things we can do to raise graduation rates and prepare our children for college. bye passing kids from the fourth grade to the tenth grade to catch kids before the fall too far behind. paying for and readers to take the pre-s.a.t.. and expanding access to advance low-income students. all of these are important and i'm willing to work with legislatures in both parties to get this passed. these reforms will help our children reach their goal.

give them a better shot at success. more opportunities to live a better life than us. but increasing opportunities for our kids is more than just education. we have to make sure that there are jobs for them here in mexico when they graduate. last year i promised that we would send a message that mexico was open for business. small businesses now know that the government is doing a better job of working to facilitate instead of impede job growth. we saw what can happen when we make ourselves competitive with surrounding states and last year i came before you to ask that we eliminate to go through all the locomotive fuels to level the playing field with texas. i promise if we did that union pacific would locate right here

in mexico. we came together in a bipartisan manner and eliminated that tax. union pacific is now in mexico creating 3,000 jobs building their new facility. and over 600 permanent. [applause] connectivity is now leaving el paso and moving by reading it to 200 jobs. a similar story with alaska structures which also moved operations here from el paso. later this week i will be continuing my work with governors from mexico to make our state not just texas a key trade corridor into the united states. [applause]

there are tremendous optimism about the economic development in new mexico. but by what we are doing along the border. in fact a texas mexico newspaper has seen what we have done and they are worried so said in an editorial. texas worrying about mexico stealing their jobs? my friends, the more they worry the better we are doing. we need to keep it that way. [applause] lowes announced its bringing jobs to albuquerque and we welcome them with open arms. [applause] i recently visited general mills which just finished a 100 million-dollar expansion creating 60 new and permanent

jobs on all while achieving the highest levels of environmental standards. i said last year i believe we can support the growth of business and protect the environment. we are going to help those who play by the rules and punish those who don't. when intel needed an air quality permit we've ruled to be compelled them to high standards and when they met as high standards we got them to permit in less than four months, quicker than ever before. [applause] but when the corporations broke the environmental law, when they tried to sidestep our safeguards , we went after them, collecting over $3.3 million, utility, energy and oil and gas companies. with sensible predictable regulation we can grow our economy and protect our

environment. we can do both and we must do both. we have to do it all because we are competing with other states. unfortunately a recent study ranked mexico dead last in terms of our competitiveness. dead last. instead, we have one of the most burdensome tax posts and all the country. i have long said government doesn't create jobs. doesn't. small businesses do. but government can and does create the environment to help small businesses grow. we can do so much to level the playing field for our small businesses. that's why am proposing that we examine roughly half of mexico's small businesses, those earning less than $50,000 per year from

the receipt tax. [applause] that's roughly 40,000 of our small businesses. the little ones, the start-ups, this is a bottom-up approach. many of mexico's successful businesses started at kitchen tables with not much more than the accounts and the families and a dream. we need to invest in a culture of all entrepreneur should so more of these family businesses can make. so we can grow and hire more mexicans. i am also proposing a tax credit for high-tech research and development to attract more high-paying jobs to the state. and this year it's time for us to stop the double and triple taxation that is troubling our

construction and manufacturing industry to the [applause] this is often called pyramiding. a business to business tax that kills jobs and mexico. because of our tax system it's cheaper for the mexican companies to hire an out-of-state corporation for services rather than to hire and in state firm. it makes no sense. only two other states and in the entire country impose taxes like this. and it's time for us to end it. [applause] and for the ultimate hero among us, i am proposing a 1 dollar tax credits for employers who hire veterans, returning home from deployment. [applause]

these men and women should not fight forever freedom abroad only to be stuck on the unemployment line when they return home. we are joined today by major john miller as well as who is a pilot in our international guard 23 years. most recently deployed to iraq and the staff sergeant at the national guard who spent all of 2011 deployed as a leader in the peacekeeping mission in kosovo. please stand. [applause]

we thank you for your service. it is because of your fight that allows us to have differences and opinions and freedom of speech. we are so grateful for what our veterans have done and continue to do for us. major miller and staff sergeant are making a career in the mondadori to eventually retire. these veterans and so many others who might see here today have given us freedom, and i am proposing that we allow retiring veterans to exempt 25% of the pension income from state taxes. [applause] ladies and gentlemen, we must

agree they have earned it. [applause] another critical element to turning mexico around is rooting out corruption. we are making progress. but there is much more we can do. corruption tilts the playing field against honest people and shakes public confidence in their government. that's why i signed an executive order that prohibits the state government from doing business with company involving corruption. it's why all of my appointees must disclose a financial interest online. and it's why my appointees are barred for the lobbying of state government for two years after serving in my administration. [applause] public service should be about serving the public, not sitting at a future date.

that's why i am once again asking you to close the revolving door that term citizen legislatures and special-interest lobbyists. for one day they are serving the public and the next day they are using those connections to serve the special-interest. both parties were guilty of this. it's wrong for democrats, and it's wrong for republicans. [applause] there are a few other common sense measures we can enact to help restore public confidence. when the public official is convicted of corruption, they should be forced to remove themselves from their position immediately. not ten days or 14 days later. [applause] when the politician violates the

public trust they should lose their public pension and be barred from doing business with the state of new mexico. [applause] when the state was after a public official for corruption to give the taxpayers their money back to the taxpayers should not have to defend that person in court and pay for those legal fees to the [applause] mexicans expect us to act on these reforms and to state loud and clear corruption in mexico will not stand. [applause] finally, keeping the mexican children and families safe should be a top priority. every time our legislature meets. just look around the little ones that are here in the audience

today. like you i was horrified over the holidays to read about the tragic and inexcusable cases of child abuse. a child just a few weeks old badly beaten, sexually abused him and eventually left to die. small helpless little girl bruised and broken and left in the bathtub. i've spent my life and career helping those who had no voice particularly children who had been the victims of senseless cruelty, violence and abuse. i'm asking you to join me in standing up for those who are unable to stand for themselves. i'm asking you to increase penalties for child abuse, those who abuse children should face severe mandatory penalties. [applause]

we must always put justice for victims first during every legislative session. the senator and i had the opportunity to meet with the family of michael snyder in albuquerque man who was murdered by his wife and then secretly buried in his home for eight years. michael's sisters terrie and laura as well as his mother are here today. [applause]

michael's wife said he had simply gone missing, simply had left and sadly her secret was cut long enough that the statute of limitations had run out. so this killer would serve only a few years for a murder that could have kept her behind bars for the rest of her life. that isn't right. and we are going to change of law and fight to ensure that no one is able to murder someone in our state and get off easy or get away with it completely by simply letting the clock run out. that is wrong. i am confident we can work together to solve our public safety needs. democrats, republicans and indy 500 we can do it. [laughter] [applause]

strengthening mcginn squall to ensure sex offenders cannot live in secret in our neighborhoods, allowing the import alert to be issued when relatives abduct a child and put them in harm's way, and yet ending the practice of providing drivers licenses to illegal immigrants as well. [applause] just last week a man pled guilty to trafficking humans from pakistan and elsewhere through new york and into our state. a touch and go. to grab our license, to grab our government issued id card and leave.

where? who knows. for what purpose? who knows. over and over, the same story, the fraud, the trafficking, the security threats. i want to thank independent representative for sponsoring the bill to repeal this lawyer. thank you. [applause] and i want to thank the democratic house judiciary committee chairman for working with us last session to cut through and tone down their rhetoric and to develop a compromise. [applause] a bill that doesn't get a driver's license to be illegal immigrants, but does allow foreign nationals who are here

legally on a work or student visa to get that driver's license that was a good compromise and cleared the house last year with five partisan supports. this issue has been debated thoroughly. the desire of mexicans is clear and it's time to vote to repeal law. [applause] i'm also asking a little later to work with me to crack down on repeat drunk drivers. a vehicle in the hands of the repeat drunk driver is a deadly weapon. it's a deadly weapon that we should confiscate. it just like they did in the city of albuquerque we should seize the vehicles of repeat drunken drivers and for those who rack up four, five or six or

more dwis who don't get the message it is time to in prison more mandatory prison sentences that gets them off the streets and away from our families. [applause] controversy all issues like these always posture of heated debates and that is okay. because we have proven that through tough debates we can find common ground. without compromising our principles to read all sorts of issues. we did last year to protect classroom spending we did on school grading and on bill law and to close the loopholes to allow the of six corporations to gain the system. we did it together. we should all be proud of these successes but not for us. because of what it means to others. i am reminded of a quote that

hangs on my wall today. it motivates me to work for all of the things we discussed. it reads 100 years from now it will not matter what my bank account was, the sort of house i lived in or the kind of car that drove. the world may be different because i was important in the life of a child. mexico turned 100 this year. think of where we have been as a state. how far we've come, and 100 years from now, imagine what our state will be and accept the responsibility that we all share to shape the future to provide an even greater state for the children and grandchildren of new mexico. i believe there is good reason to be optimistic. new mexicans always rise to the

challenge. i would be remiss not to recall how families, friends and neighbors took care of one another and many battle of record cold temperatures without heat last winter. and the record breaking wildfires that we face over the summer. i was humbled and honored to watch the mexico adel fees' blazes with police, grace and determination. i would like to have knme team and police chief wayne torpy please stand. [applause]

we became close friends through the community trusted youth that rely on your briefings and on the men and women a new training to handle the crisis of that magnitude. gentlemen, you made mexico proud. thank you. [applause] today i believe that in front of us is an opportunity to make tomorrow better than today. to create the mexico that reflects our values, a place for those who play by the rules succeed and those who don't are brought to justice. a place for those that have risked their lives to protect our freedom return home to find a that is protected their jobs. a place where small businesses grow and other companies choose

to locate. a place where every new mexico child is taught to chase his or her dream when they struggle where they learn to overcome challenges, but never, ever accept failure. it is up to us to seize this moment, to face our challenges and why is once again to the occasion. mexico's's best days are ahead of us. i believe that. i know you believe that. and together, we will ensure our children live that. thank you all, god bless you, god bless me mexico and all of the work ahead of us. [applause]