to the united states and the world of a muscular american foreign policy on the american side side and iran is one of the test cases of at that, so there's a greater likelihood for republicans but it's not certain. >> hillel thank you and ray thank you and thank you to our audience and thank you to her c-span audience as well. thank you very much. [applause] ..

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>> welcome governor martinez. we are pleased to have you here. good afternoon. lieutenant governor; senate president pro tempore; mr. speaker; democratic and republican leaders; esteemed members of the new mexico legislature; honorable members of the judiciary; former new mexico governors; tribal governors; senator udall; representative lujan-grisham; representative lujan; distinguished guests; the state's first gentleman, my husband, chuck franco; my step-son, carlo; my dear sister, lettie martinez; and, my fellow

new mexicans. it is an honor to join you for the annual state of the state address and open this legislative session, where i believe our focus must be on two of the most pressing issues - jobs and education. [ applause ] but first, let's turn our thoughts to the community of roswell. as we recall last week's tragic school shooting, let's pray for nathaniel, who's struggling with serious injuries, and for his parents, who are showing such strength. and when i saw kendal last week, after having been through such horror she was in great pain but couldn't wait to see her best

friend, set to arrive at the hospital any minute. the parents, teachers, and community members pulled together and turned to faith over fear. i have some very special guests with me today - john masterson, the soccer coach and social studies teacher, whom we have come to know as a true hero. when hundreds of kids needed someone's help, his courage was on display in that gymnasium, and his humility has been on display since. kevin hayes, a security guard, provided help and care to nathaniel despite having been injured himself in the shooting. no human being is gifted with the knowledge of why such tragedy occurs. but, we are thankful that in the face of it, people like both of

you display the courage required to help all of us get through. thank you both so very much. [ applause ] today, i am proud to report that the fiscal position of state government remains strong and steady. by working together over the past three years, not only did we close the largest structural deficit in state history, we are looking at our third straight year of budget surpluses.

[ applause ] we've doubled the size of our state savings account, and we did it all without raising taxes. [ applause ] republicans and democrats can be proud of our firm fiscal footing. it is a far cry from where we were just three years ago. we completely overhauled a near-bankrupt unemployment insurance system. we reformed our state pension funds, resolving a $12 billion dollar shortfall while ensuring that state workers, police officers, teachers, and others will have the retirement support they deserve. education spending now exceeds pre-recession levels, with more

accountability. not only have we not raised taxes on families and businesses, we have cut taxes 19 different times. less than one year ago, in a display of tremendous bipartisanship, we passed the most significant tax reform in a generation and sent the loudest message yet that new mexico is striving to be a business-friendly state. that message is critically important in a global economy. we all know that businesses have choices, and they will locate and grow where they are treated fairly. in 2011, ernst and young rated us third worst in our region for manufacturing.

after our tax reforms, they came with another ranking just last week. now, new mexico is the best in the west. but, more than words of praise, our reforms have helped create and protect jobs. look at the economic development along the border. by eliminating the tax on locomotive fuel early on, union pacific came to new mexico. then we eliminated the double and triple taxation of many goods and services. last session, we reduced the business tax rate to make us more competitive with our neighbors and to encourage manufacturing. southwest steel coil, from california, has added nearly 40 jobs in new mexico, citing these reforms. omega trucking, a woman and

minority-owned business, also added more jobs. that area developed because we first made our state competitive with texas, and attracted union pacific. then, last session, we made new mexico more competitive with our other neighbors. when we talk about our tax reforms, some only think of large corporations. don't get me wrong, we want those jobs too, but our tax reforms are critical across the board to businesses large and small. let me give you an example. sparkle maintenance is a janitorial business. it was started 50 years ago in new mexico around a kitchen table, the way so many small businesses start. today, it employs 400 workers. one of the owners, carlo lucero, recently approached secretary

barela. he praised the state's tax reforms because his customers - the companies he contracts with - have told him that our tax reforms have kept them in new mexico. i asked carlo to join us today, and a very special lady. carlo's mother, eleanor, co-founded the company with her husband around that kitchen table. i wanted to recognize them, so we all remember the impact our reforms have on local small businesses. congratulations on all that your family business has achieved.

we're doing better fighting the headwinds from washington, but i'm the first to say that we have a lot of work left to do. being able to compete is not a destination, it's a process. washington remains a mess. the federal government remains deeply in debt, forcing federal budget cuts. partisanship still rules the day, and the national economy is sluggish. we cannot bank on that changing, we cannot bank on that changing, not anytime soon. we can, and we should, fight to protect the important work done by our labs and bases, but we should fight equally hard for a more diverse economy. seize upon the uniqueness of our seize upon the uniqueness of our state, the diversity of our people, our resources, and our backgrounds, to grow the private sector in every corner of new mexico. diversity - it's what sets us

apart from every other state in the nation, and our economy should be no different. our charge this session is to build an economy as diverse as the state we are proud to call home. growing a diverse economy starts by helping small businesses, the mom-and-pop shops. that's why we created the office of business advocacy: to help small businesses cut through the red tape. it has now helped save or create over 2,000 new mexico jobs in all sorts of different industries and in towns large and small. we invested in the mainstreet program, helping 100 small businesses get off the ground, and putting over 500 new mexicans to work. we invested over $2 million

around the state to help rural industrial centers with infrastructure costs. just look in las vegas at two small businesses - one is a meat processing facility called martinez and sons. it is a family-owned business that our program helped grow. we also helped inter-galactica, a bakery, expand with a small capital grant. these small businesses might not seem like a big deal to some, but they matter to that community. and, they matter to our economy, because 64 percent of new jobs are created by small businesses. we must build on these efforts-- not worry about whether they are democrat ideas or republican ideas. that's why i support democratic senate president mary kay

papen's bill to create an online one-stop shop, a central location for small businesses where they can get permits and other assistance. there is more help we can provide. companies large and small must have access to a skilled workforce. that is why i am proposing that we make the job training incentive program permanent, so we can better partner with businesses hiring new workers, [ applause ] paying a large portion of their salaries while being trained. in the last year, we have also announced 10 new early college high schools. by their nature, these schools are designed to produce employable workers - high school students, who intern with local businesses, graduate with a

diploma, job-ready certificates, and an associate's degree. for those who want to go to college - they're only two years away from a degree. but college isn't for everyone. for those who want to go to work instead, they're ready and they already know the local industries. so let's fund a second round of early college high schools to create a workforce for local small businesses. that's what supporting a diverse economy is all about. starting a business and creating jobs involves risk. successful economies embrace new ideas and encourage risk-takers. new mexico should be a technology jobs leader, a haven for innovation, a place where

the best and brightest come to bring their products to the market. here's how i propose we do it. to increase the pipeline of innovation, $7.5 million to help our universities attract the best professors and researchers in the world. two million dollars so universities and labs can take their ground-breaking projects to the marketplace. expand the angel investment credit to help start-ups get the capital they need to get off the ground. provide greater incentives for every new technology job created in new mexico. this plan will help make new mexico a technology jobs leader. in addition to helping start-ups, now is the time to create new jobs within our

health care industry - diverse jobs of all types, in urban and rural areas. we can hire more workers and improve access to quality health care for more new mexicans. i wasn't a supporter of obamacare. but under its mandate we had a choice whether to expand medicaid using federal funds. we chose to expand medicaid because it was the right thing to do for new mexico. [ applause ] now, we have a responsibility and duty to expand our primary care workforce to meet these new demands. today, in 32 of 33 counties, we

don't have enough health care workers, and that's before we attempt to add up to 205,000 more people to medicaid. we have taken some strong first steps toward creating more jobs in the health care industry, like training and educating more nurses by instituting a common statewide nursing curriculum. credits will transfer seamlessly between every college or university, and students can now earn bachelor's level nursing degrees in their own community. thank you to the nursing consortium - represented today by debra brady, jenny landen, nisa bruce, and terry keller. more nurses in rural areas. you helped make it happen. [ applause ]

i'm also proposing aggressive initiatives to increase the number of primary care providers - of all types - all over new mexico. we'll help repay student loans - doubling our commitment, particularly for those who agree to serve in rural areas. this will create up to 720 new health care workers this decade - nurses, dentists, physicians, and others, in areas that are too often underserved. expand tele-medicine, connecting rural-area providers and patients with a physician or specialist. train more doctors and nurse practitioners here at home. cut the red tape to attract more nurse practitioners. under this plan, any nurse practitioner in the country who wants to come to new mexico will be licensed and ready to provide quality health care in five days

quality health care in five days or less. you see, building a health care workforce is about embracing the uniqueness of our state and hiring the right kind of practitioners to meet the diverse needs of each of our communities. just as a strong workforce is the lifeblood of an economy, infrastructure serves as an economy's foundation. sadly, new mexico's water infrastructure is in a state of crisis. as governor, i have seen first-hand the effects of our devastating drought. water supplies have run dry in towns like magdalena. we've seen the one-two punch of wildfires, followed by floods, destroying watersheds and threatening communities. we cannot control the duration or intensity of the drought we face.

but we can control our response to it. if we invest in water infrastructure in a way that benefits each of our unique local economies, we will not only create jobs in the short-run, but also set the stage for long-term economic growth. we've seen it work. the border area is growing dramatically, in part, because we invested in water infrastructure and allowed santa teresa to serve more businesses. now their industrial park is booming. building and repairing our water infrastructure has never been more important. everyone agrees on this. that's why i'm asking that we invest 60 percent of our capital dollars on critical water projects throughout new mexico.

these capital dollars are not my dollars, or the legislature's dollars. these tax dollars belong to the people of new mexico, and they should be invested where they need help the most. water projects should be on the top of the list. [ applause ] but i've been clear from day one: the most significant way to improve our economy in the long-run is improving education, ensuring children can read at an early age and that they graduate from high school with the skills they need to succeed in life. i haven't been shy about investing in education. education spending is now above pre-recession levels, the highest in state history. my budget calls for $100 million more.

but money alone isn't the answer. we should expect a return on our education dollars, and that return should be student achievement - our kids reading at a higher level, our students graduating at a higher rate. [ applause ] money should go directly to supporting struggling students, increasing parental involvement, developing and rewarding successful teachers, and turning failing schools around - not simply funneling all of our education dollars toward the bureaucracy. it begins with making sure that every child is able to learn to read. we doubled funding for pre-k, went from serving 4,600 students

to almost 8,000. i am proposing another expansion this year. [ applause ] we've expanded k-3 plus and made it permanent, giving 11,000 struggling kids extra help over the summer. under my budget, we would spend $15.5 million on the tools our teachers need to identify struggling readers early on, and get them help to bring them up to speed. the interventions are in place. what isn't in place is a law essentially saying that we refuse to set our children up for failure in school and in life.

every new mexico 3rd grader who can't read and gets passed along anyway is four times more likely to drop out. that's not an opinion; it's a fact. those who drop-out are more prone to end up on the wrong side of the law, struggle to find work, and have a hard time providing for a family. we shouldn't set kids up for a future like that. kids need help early on, in kindergarten, first and second grades. we're giving them that help right now. but if a child can't read by the end of the third grade, it's far more compassionate to give them an extra year of help to catch up -- [ applause ] --

rather than simply passing them on and setting them up for limited opportunities in life. new mexicans know the right choice, and members of both parties in this legislature have embraced the right approach before. let's not play games. let's finally end social promotion and ensure that every new mexico child can be read by the end of the third grade. [ applause ] getting money directly into the classroom also means providing our schools with updated textbooks. everywhere i travel, i hear about it. under my budget, we increase funding for kids' textbooks by $9 million - a 43 percent increase.

[ applause ] teachers throughout the state also pull me aside and talk to me about the importance of parents being more involved and engaged in their students' education. i couldn't agree more. a lot of parents want to be better partners, but may not know how. some parents need help. that's why we've trained over 5,000 parents in fun, evening workshops at schools across the state. they're called: "readers raise the roof"; it's where we teach parents how to teach their kids to read. it's why last summer we encouraged our kids to take part in reading challenges all over the state. it's why we give every first grader a reading book of their own to take home and read with their family, because we need to encourage parental involvement.

and it's why i'm proposing the expansion of parent portals - websites where parents are able to monitor their child's homework, grades, and attendance on a daily basis. it improves parent/teacher communication. it's easier for a mom to ask her child, "do you have homework?" and already know the answer. or, "i hear you're having a hard time in math let me see if i can help. " beyond increasing parental involvement, we can do even more to support and champion teachers in new mexico. i saw all sorts of a's next to my son's name and i was looking forward to talking to him and telling him how proud i was. and then i looked closer and realized what those a's meant. apparently those a's were not

letter grades. hey were absences. needle needlessto say we had a talk that day. but beyond increasing that we can do more. it's an honorable profession. next to their parents, the adults children see most in life are their teachers. if a teacher can get the best out of their students, get them to read well and improve, they arm their students with the best opportunity to succeed. we should support our teachers with additional pay; by rewarding and recognizing effective teachers, and it is time that we raise the minimum salary for starting teachers by 10 percent.

[ applause ] we should support our teachers with advancement opportunities like being able to become a principal in two years instead of six. we should support our teachers by providing help and training. in the past three years, we have trained over 6,000 teachers and school leaders, offering academies for teachers in struggling schools. under my budget, we expand that training. i am also pledging $8.5 million to improve how we educate students aspiring to be teachers at our colleges and universities, so that they're even better prepared to enter the classroom. [ applause ] and, we should support our teachers by providing them with thorough and fair evaluations.

help them identify areas where they can improve, and finally recognize and honor their successes. our previous system was not a real evaluation at all; 99 percent were rated at the same level - "meets competency. the president's education secretary singled it out and called it a broken system. even before we made our improvements, an albuquerque school had already taken a similar approach, factoring student progress into their evaluation process. sure, it was controversial at first, but it worked. i am pleased to welcome the principal of albuquerque institute for mathematics and science (aims), kathy sandoval-snider, and two teachers - brianna logan and jerry delmore. the fact that i'm evaluated now. i can wear it as a badge of

honor, saying, 'look, i accomplished it. '" these evaluations help teachers improve. aims is a blue ribbon school today. kathy says it wouldn't have happened without these reforms. and this year, they're expecting a near 100 percent graduation rate. thank you for all that you do. [ applause ] when we invest in reform, when we set a high bar and keep it there, we have seen what is

possible. across the state, third graders showed modest improvement in reading, which is positive, but in those districts that were piloting our reading reforms, using reading coaches and other interventions, the third graders in those schools saw test scores increase by more than twice as much. that shows the reading reforms are working. last year, we saw our graduation rate rise from 63 percent to 70 percent - a significant increase. think about what that means. that's more than 1,300 hispanic students receiving diplomas in new mexico, who would've been dropouts one year earlier, moving us from 42nd in the nation to 31st.

that's nearly 250 more native american students receiving diplomas, moving us from 37th in the nation to 29th. fifty-nine additional african-american students, taking us from 40th to 25th. more than 650 additional english-language learners, taking us from 28th to 15th. and almost 1,300 more low-income and almost 1,300 more low-income students receiving diplomas, who would've been dropouts one year earlier, taking us from near last to 39th. [ applause ] you see, each new diploma isn't just one more piece of paper. it's a ticket to a more successful life. we're raising the bar, and our students, teachers, and schools are meeting it. it's high time that we acknowledge and embrace that accountability in education works.

am i satisfied with small increases in third grade reading, or with a graduation rate that still shows three in 10 high school students failing to receive a diploma? absolutely not; nowhere near satisfied. but it shows the important progress we can make when we choose to change, when we choose to reform, when we choose to invest in helping our struggling students read, and when we better prepare our high school students for college or the workforce. so, let's continue to choose reform over the status quo. [ applause ] of course, when companies look to expand in new mexico, or perhaps relocate here, there are a number of other factors they consider - quality of life concerns.

they look at public safety, for example. over my 28-year career, i've seen times when new mexico has chosen to lead in this area. one of the most difficult cases i ever prosecuted involved the i ever prosecuted involved the death of katie sepich, a young woman whose brutal murder has led to dna collection laws being enacted throughout the country. armed by the amazing strength of katie's parents, dave and jayann, new mexico chose to be a national leader in this effort. in 2011, we strengthened katie's law to include dna collection for all felony arrests. and in what was an incredibly important moment for our state, the united states supreme court upheld the constitutionality of dna collection this past june.

dave and jayann - i've heard you talk about how hard the last eight years have been harder than you ever expected. your journey required a step of faith. you took that step, and your work has saved the lives of young men and women all over the country. it has also saved other mothers and fathers, sisters and brothers, from feeling the loss that i know you felt, because i was with you when you lost katie. katie would be so proud of you, and the state of new mexico is proud of you as well. thank you for all that you do. [ applause ]

there is so much additional work to be done to protect children from harm. eight months ago, i put together a child abuse working group and asked them to identify loopholes and deficiencies in our child abuse laws. now it's time to make some common-sense changes. one example: if a child is enticed over the internet for sex, it's a felony. if the same enticement takes place in person, it's a misdemeanor. if a child is abused intentionally and killed at the age of 11 years and 364 days old, the killer gets life in prison. but if a child is a day older, the killer can be out of prison

in about 15 years for committing the same crime. there are other changes we need to make, like requiring oversight of facilities where children are placed in residential care and ensuring parents attend counseling after abuse allegations. i'm also asking that new mexico join eight other states in passing erin's law, which would require that all children receive age-appropriate education on how to recognize, avoid, and report abuse, arming them with information that could potentially save their lives. but perhaps the most important

clarification we should make relates to who is responsible for reporting child abuse. as a career prosecutor, specializing in child abuse cases, it has always been well-understood that anyone who sees a child being abused must report it, or face criminal penalties. in fact, not only did i prosecute baby brianna's killers, i prosecuted her uncle and grandmother as well. they knew what was happening. they saw it, but they did nothing about it. we can't just place this reporting requirement on professionals like social workers, teachers, or coaches. baby brianna never interacted with any of these people. she was too young to be in school and was never taken to the doctor. she was just five months old. so, aside from her family, who was going to see her abuse and stop it? i'm highly disappointed by the recent state court of appeals decision saying our law isn't crystal clear on this subject. well, if it wasn't crystal clear before, it's time to leave no doubt; we must enact legislation

to make it clear that child abuse must be reported by anyone who knows or suspects that it is taking place. [ applause ] keeping our children and families safe also requires cracking down on repeat dwi offenders. offenders should receive more jail time, and dwi convictions should count when felony offenders are being sentenced for other crimes. and any person who gives their car to someone they know does not have a license because of a dwi conviction should face real punishment.

while we're on the subject of public safety, i'm once again asking this legislature to repeal the dangerous law that gives driver's licenses to illegal immigrants. [ applause ] we've seen several fraud operations busted recently. just last year, an elaborate scheme was uncovered in eastern new mexico - where hundreds of driver's licenses were sold to illegal immigrants. the ringleader bragged that he made $30,000 a month. i've put forward a strong compromise to repeal this law and still allow driving privileges for dreamers. it's time to act. the legislature should do what the overwhelming majority of new mexicans are demanding - repeal this dangerous law.

[ applause ] in addition to asking whether the state is safe, businesses often want to know - will they be given a fair shake by those in government? not special treatment, just a fair shake. we've taken some important steps, but can do even more. just as i've prohibited my appointees from lobbying the legislature or the administration after leaving their posts, the same two-year ban should apply to members of the legislature as well. and, in addition, it's time to require those convicted of corruption to be immediately removed from public office. [ applause ] and they should be prohibited from unloading their campaign

funds into any place other than donating it to new mexico's general fund. [ applause ] before i close, it's always the right time to honor and support those who fought so hard to protect our freedom - our veterans. earlier this year, i started a pilot program where we hired a crew of veterans who had recently returned from combat to serve as firefighters. they became well-trained and battled summer blazes in pecos, kingston, and jemez, as well as fires in california and oregon when other states needed our help, showing tremendous skill and unparalleled work ethic.

i'd like to introduce two of those brave soldiers, and now, trained firefighters - husband and wife, brian and tessa filip. [ applause ] thank you for your service, and in honor of it, i propose that we make the "returning heroes" firefighting program permanent. as we continue to provide free mental health services to returning veterans and their families, we must never forget that honoring veterans who are no longer with us is one of the most sacred responsibilities society shares. it's time to start building local veterans cemeteries throughout new mexico, of the highest standard. that way, families of our veterans no longer have to

travel great distances to visit the gravesites of their loved ones. for $600,000, we can build three or four new cemeteries in areas that have large populations of unserved veterans. we'd be the first state to adopt this unique approach to a long-standing problem. it is the least we can do, given all they have done for us. [ applause ] with great challenges come great opportunities. to seize these opportunities, we must come together - republicans and democrats, the legislature and the governor.

i know we can do it, because we have in the past, on very big issues. we came together to close the largest structural deficit in state history, and came together to completely revamp our unemployment insurance system. we came together on education reform, school grading to increase accountability, and making k-3 plus permanent to give struggling kids the help they need. this session we need to do more on education, tackle early childhood literacy, and reform our lottery scholarship to sustain it in the immediate future, and to protect it for the long run. on tax reform, all sides compromised, and we achieved a great deal for the people of new mexico. we cut the business tax rate by 22 percent, closed loopholes, and enhanced film incentives for television series filmed in the state. this session is a short session - only 30 days.

let's put the most pressing issues first - education reform and helping create a diverse and helping create a diverse economy that's less dependent on washington, d.c. while we won't agree on everything, and there will certainly be spirited debates, i am committed to working with you to find common ground, just like we have in the past, because the people of new mexico deserve nothing less. thank you. god bless you all, and god bless the state of new mexico. [ applause ]

>> a local santafe noted that much of the applause came from her own party. common ground might be hard to find on martinez agenda especially on issues that have been fought in previous sessions. pat quin delivering his state of the state address in springfield. he took over in 2009 and was later elected to a full term in 2010 becoming the state's 44th governor. [ applause ]

>> mr. governor, please proceed. >> president cullerton, speaker madigan, leader radogno, leader durkin, lieutenant governor simon, attorney general madigan, secretary white, comptroller topinka, treasurer rutherford, members of the general assembly, and distinguished guests: good afternoon. i'd like to begin by recognizing two public servants who gave

their full measure of devotion to all of us on monday night. illinois tollway worker vincent petrella lost his life doing his job. vincent was struck and killed on i-88 while helping a truck driver in distress. he served with the tollway for 13 years. he leaves his wife sandra and two young children behind. and we ask god to bless his immortal soul. illinois state police trooper douglas balder was with vincent that night. at this hour, trooper balder is battling for his life at loyola university medical center in maywood. we thank him for his ethic of service and we pray for his recovery. please join me in a moment of silence and prayer for vincent petrella and trooper douglas balder. brblth

[moment of silence] in illinois we honor our heroes and we're grateful for their service. i'd like to welcome two more illinois heroes, sergeant brent adkins and sergeant benjamin griest of the illinois national guard. shortly after midnight on monday, january 6, they answered the call. multiple semis had jack-knifed and caused a pile-up on i-57 and i-70 near effingham. the drifts were so thick and the snow falling so hard that even our snowplows could not clear the way and more than 400 motorists were stranded in wind

chills of thirty below. sergeant adkins and sergeant griest traveled from the national guard armory in mattoon through arctic conditions in the middle of the night with their wrecker in tow -- a military vehicle that can lift more than 10 tons. they cleared the road and rescued hundreds of people. thank you sergeants, for getting the job done. just weeks earlier, many of our communities were devastated by deadly tornadoes. eight people lost their lives and 2,265 lost their homes.

six-year old brevin hunter, of washington, illinois, was one who lost his home. brevin warned his mom to seek cover in their family's basement just moments before the tornado decimated their home. he saved her life. brevin and his family are here today. way to go, brevin.

today and every day, we all belong to brookport, gifford, new minden, diamond and washington. emergencies test the preparedness and resilience of our government and our people. and we have been well tested. in the last five years, illinois has been through 11 natural disasters. we've watched droughts plague our farmers -- the backbone of our economy. we saw last april's pervasive flooding in 49 counties.

we remember the tragic tornado in harrisburg just two years ago. extreme weather is a reality with devastating effects and it demands our constant readiness. and each and every time, our state workers, our service members, and our first-responders have gotten the job done. now, natural disasters were not all that we managed in the past five years. some disasters were of the man-made variety. exactly five years ago this day, i was sworn in as governor, at illinois' darkest moment. we were facing an unprecedented triple crisis of government corruption, economic collapse, and financial instability. we had one former governor in jail and another on the way to jail. our economy had plunged into the worst recession since the great depression, brought to its knees by greedy and corrupt financiers. and our financial house was on fire, set ablaze by decades of mismanagement and an utter lack of willingness to make the tough calls. hardworking people in illinois lost their jobs, their homes and

their faith in those they had entrusted with their votes. it was a perfect storm, and it left destruction in its path. we all knew that repairing the damage that had been done over decades would not happen overnight. but over the past five years, we've rebuilt one hard step at a time. and we've been getting the job done. illinois is making a comeback. first, we restored integrity to state government, passing a strong new ethics code, campaign finance reform and a new constitutional amendment to allow voters to recall any governor guilty of corruption.

when i took the oath of office, state government hadn't properly invested in our infrastructure in 10 years. within 10 weeks, we passed the largest construction program in illinois history. so far, we've built and repaired 7,595 miles of road, 1,311 bridges and 978 schools. five years ago illinois did not guarantee equal rights to all couples. our state did not even provide civil unions. today we embrace full marriage equality -- it's the law of the land. and unlike our predecessors, we've made the tough calls to balance the budget. we cut more than one billion dollars in state spending. we overhauled our medicaid program to save taxpayers over two billion dollars. and even as we took hard steps to return illinois to sound financial footing, we did it with compassion, preserving the safety net to protect the most vulnerable.

we also accomplished comprehensive pension reform, something no governor or legislature had been able to do. previous governors and legislators from both parties created the pension crisis. they did not make the required payments into the pension funds. there was no fiscal accountability. and it led to a culture of instability shaking the confidence of taxpayers and businesses. resolving illinois' pension crisis was the tallest task of all. but together, we got the job done. since i took office, we have paid the full pension payment every year. we passed a historic pension reform law for new employees in 2010. ...

>> a strong economy relies on fairness and inclusion. and if we follow this, we will do three things. create more jobs and deliver stronger education and build an economy that works for everyone. of course, economic growth starts with jobs. recovery began in january of 2010 and illinois has added 280,000 private sector jobs.

unemployment was at 11.3% at the height of the great recession. today it is at its lowest point in almost five years. since last may billina has led the midwest and new jobs created. with the strong support of the illinois retail merchandise association, we reformed the workers compensation system and our unemployment insurance system. these reforms have saved hundreds of millions of dollars and we know that we have much more work to do. we will start with a renewed focus on small business. three out of every four illinois employers are small businesses. in the last five years we have helped them through our advantage only program we have provided loans and investment to help small businesses grow. one of them is a battery

manufacture on the southside of chicago. it has leveraged our programs to grow from six full-time employees to 40 employees in just four years. today they are exporting all over the world. including the founder and ceo and with us here today, we thank you and salute you with all of our small businesses for your hard work. [applause] >> they are all getting the job done. but we have to do more to support our small businesses. especially as they did started. new businesses have long paid a 500-dollar fee when they open up shop. let's reduce this be to $39, the lowest in the nation and provide a boost to our innovators.

this small but important step will encourage entrepreneurs to start their business and put more people to work in illinois. but we won't stop there. today i am issuing the executive order to establish a small business advocate whose sole focus is to examine policies and proposals through the lens of how they impact illinois small businesses. let's make life easier for small businesses and make sure that small businesses always mean big business in illinois. [applause] in the past five years we have received minority and women owned businesses and established a new revolving loan program. thanks for the great work of maddy hunter. as we have expanded. and we have expanded contracting

goals for these small businesses. and we have increased the state contracts for women owned forms and transfers by nearly 60% and an increase of 1129 contracts with more than $120 million. in the metro east, african american businesses and workers help to build a new veterans memorial bridge over the mississippi river, which we will soon dedicate. they are getting the job done. modern bridges, modern highways, railroads, and a sound infrastructure is critical to a strong economy. in the last five years the illinois job program have invested more than $31 billion in infrastructure. in this is supported more than 400,000 jobs. thanks to these investments we

have constructed the morgan street bridge and we are building this in 2013. including the expressway and the quantities and construction is underway on a new circle interchange to relieve congestion on the eisenhower kennedy expressways. after years of deadlock, we are moving forward on our plan to build a new self suburban airport. and we are making the iliana expressway a reality to create thousands of jobs and strengthen our position as the largest inland port in the nation. [applause] are clean water initiative, we are investing more than a billion dollars in clean water, including 28,000 jobs along the way. these are good jobs or jobs for welders and truck drivers and operating engineers and painters

and carpenters and laborers. these were replacing ancient water mains and upgrading and building wastewater treatment plants all of our state, including indicator in rockford and spring valley and murphysboro. we have received 91 clean water applications from communities across illinois. this year we will expand our clean water initiative and doubled his investment to include critical storm water and flood control projects. when it comes to creating the infrastructure that we need for a strong economy we have been getting the job done. there is more work to do and we have been making progress when it comes to preparing our workforce for the 21st century jobs. including job lynk.com, our employment opportunity websites

and 100 30,000 jobs that are available right now. many of these jobs will either specific skills. and that is why we are preparing our workers for high skill and demand jobs which is a top priority to help us fill those jobs we have mobilized the education system behind our 2025 goal. we want 60% of our adult workforce to have a degree or a certificate by the year 2025. and we have been reading our targets every year on this mission. since 2008 our community colleges have grown the number of people graduating with degrees. and we can't finish the job if deserving students are not able to afford a college education.

so over the next five years, but stubble the number of math in college scholarships for students needed in illinois. our scholarship program today helps about 140,000 students go to college. students like tamari jackson and howard brown that are here today. doubling the numbers, we can make sure that deserving students in need are equipped to xl 21st entry work is. in another way we can prepare young people to succeed is through workplace experience. that is why we should expand our young adult conservation corps. this will help at risk young people get a job and getting valuable training and work experiences. these young people learn important skills and develop the skills while doing necessary

work in state and local parks and conservation areas all across illinois. there is no question that our veterans already had strong skills. we are making sure that those skills count here in illinois. last year i issued an executive order mandating the assessment of military training against ours eight licensing requirements. thanks to the work that follows the executive order, we have a new funding from the national governors association and in the coming academic year. we will launch the medics to obtain the lpn degrees at joliet junior college.

[applause] and part of our job strategy is investing in the industries that are the future of the 21st century economy. that is why we invested in 1871. the digital hub in the merchandise market has grown over 200 startups and created more than a thousand jobs in this two years. that is why now we are going to invest in a new bio hub with a pharmaceutical medical device and health i.t. startups. the life-sciences in illinois has a 98 billion-dollar economic footprint. and our new bio hub is going to drive even more economic growth into that sector. we should never forget that illinois has always been a manufacturing hub. especially the auto manufacturers and their suppliers. when i took office, chrysler employed 200 people at the belvedere plant. we partnered with chrysler. and now they employ more than

4700 workers at that very same plant. five years ago ford had just one shift at its plant with a total of 1600 workers and we worked with ford and now they have three shifts with more than 5100 workers. in the last year alone we have promoted illinois around the world and we have gotten results. the company that upgrade water systems moved their north american headquarters after my trade mission to germany with the international manufacture of i.t. with their north american headquarters. after our meetings in japan, they chose illinois for their expansion. after meeting with denmark, the

largest water pump manufacturer in the world, they move their north american headquarters to downers grove and that is more jobs and opportunities for illinois workers. [applause] and the economy also demands quality public education. and that starts with good teachers. teachers change lives for the good. and we appreciate the hard work and we have been getting the job done on education and this includes a report card and teacher evaluation with strong benchmarks and performance that is prioritized. in fact, our reforms have become a model for the nation. but our unfinished job on education started where it

matters most. in early childhood. study after study has shown that high quality, early childhood education provides the best return of any public investment i can make. including at risk children. from birth all the way to kindergarten. i have always thought to preserve early childhood education from radical budget cuts and we found a way to invest. $45 million to build early childhood centers including in cicero. leading the nation in the number of 3-year-olds attending preschool. but the status quo is not enough and it's not even close. the reality is that more than one third of the youngest most formidable children don't have the opportunity to attend early

learning programs before they enter kindergarten. that is unacceptable. 50% are more likely to be placed in education and they are 70% more likely to be arrested for a violent crime. scripture tells us where there is no vision the people perish. and that is why today i am calling for a bold initiative that will be focused on three key to a healthy child. prenatal care, access to early learning opportunities and strong parent support. this initiative starts before a mother gives birth to her child. by ensuring that she has access

to prenatal services throughout her pregnancy. the good news is that the prenatal care is already available to expectant mothers with moderate incomes are existing programs. yet 25% of our low income mothers are not receiving the prenatal care they need. children pay the price. mothers do not receive prenatal care are three times likely or more likely to give birth to a lowly baby, which leads to increased risks for cardiovascular disease. this includes diabetes, learning disabilities and poor development. also the taxpayers pay the price. the cost of the birth of a baby that is a low weight is five times that of a normal birth. in addition to significant medical needs that burden the system, these children often require early intervention services and remedial education and repetition.

and they lose out on the opportunity to achieve their full potential. so through our initiative over the next five years, we will work with our community partners and schools, hospitals and faith-based organizations to identify expectant mothers and connect them to prenatal services. we can ensure more children are born into the opportunities that they deserve. we can save the taxpayers money. but we won't stop there. when the human brain is forming in a child's early life, it provides a critical window of opportunity to develop key academic and social and cognitive skills that will determine success in school and in life. that is why the second pillar of our initiative is to provide every child with access to quality early learning opportunities. this is especially important for african american and latino children. children like cadence very

robinson, a 5-year-old who i recently met when i visited spencer technology academy on the west side of chicago. she sat on my knee. she told me that she was getting ready for kindergarten. and then she read the numbers on my business card to me. something that she could do, thanks to the head start program she was attending. with strong early childhood education, kids like cadence are set on a path for long-term success. we are really proud of you. thank you very much for what you are doing. [applause] [applause] and we also see the importance of early childhood education. people like christine, raised by a single mom in chicago's hilton neighborhood. her family struggled every month to make ends meet. her mother always knew that she

wanted more for her children. after seeing a flyer, she enrolled christine in an early learning program. she then went to high school and then on to college and last year she completed her master's degree at the university of chicago. today she is a fellow at the latino forum and striving for a career in early childhood. good job, good choice, christine. [applause] [applause] in 2009 i established the governor's office of early childhood development. and as a result we secured the race to the top, allowing us to deliver high-quality early care and education programs. by properly investing in existing early learning programs and making this a budget priority that we can transform

the lives and save taxpayers money. but we can't stop there. a child's parent is a child's first teacher and best teacher. moms and dads away the most important role in promoting the healthy development of their children. not all families, unfortunately, are equipped with the information and the support that they would need to create healthy learning environment. that is why the nerd critical part of our initiative calls for ensuring parents to make sure that they have the support and services that they need. family involvement during preschool is linked with stronger pre-literacy skills and math skills. social skills and a positive attitude. over the next five years we will connect families with a range of services and training opportunities to help them support their children's education. we will expand the home visiting program and build upon

innovative community partnerships in places like east st. louis, north lawndale. once the initiative is fully implemented, mothers will be connected with prenatal care to ensure the healthy birth and development of their children. children and grandchildren in illinois will have access to quality early learning starting up or and parents will have the tools to lead their children toward success in school and college and careers and beyond. illinois can lead the nation in early childhood education. we already have the foundation in place and now is the time to get the job done for illinois liberalist. [applause] [applause] giving our children the best start in life will lead to a stronger economy. but if our economy doesn't work for hard-working families, if it

doesn't build the middle class, then our job is not done. the foundation of a strong economy is a strong middle-class. in illinois we believe that if you work hard and you play by the rules, you deserve a fair shake. every person, no matter what challenges he or she faced as deserves an opportunity. that is why a big part of our blueprint today is ensuring that all illinoisans have the opportunity to pursue their dream and enter the middle class. building a middle class means keeping families in their homes. thousands of hard-working families were in danger of losing their families in the great recession. but we work to fight foreclosure and promote affordable homeownership. we have launched the illinois hardest hit program to help working families keep their home. more than 11,000 families in

every county in the state have received the foreclosure prevention support they needed. we also launched welcome home here as to give military families an opportunity to buy homes after sacrificing so much to protect our freedom. thanks to the welcome home heroes, 1150 military families have access to more than $140 million to help their homes. we have not forgotten about our neighbors with developmental disabilities. which is why we have financed more than 2500 new supportive housing units that provide individuals with disabilities more choices in their communities. and that is why we have honored the example set by the students of downers grove north high school. they have demonstrated what everything and everyone is all about. dan wagner with down syndrome and when she was diagnosed with

leukemia. her friends did not forget her. her lifelong friend nominated her to be the homecoming queen and the students voted for her to be the homecoming queen. and mary, we are so very proud of you. [applause] [applause] [applause] building a middle class also means providing everyone with decent health care. today 144,000 more people have health coverage in illinois who didn't have it one year ago. many more will find coverage in the coming year to get covered

illinois dog. thank you representative lisa fernandez and mary flowers for your health care leadership. this year we really have a job to do for our fellow citizens who are making the minimum wage. $8.25 per hour. our minimum-wage workers are doing hard work. they are putting in long hours. into and to many instances they are living in poverty. that is not right. that is not an illinois value. that is not a fair shake. this is all about dignity and decency and i said it last year and i will say it again that it is time to raise illinois minimum wage to at least $10 per hour. [applause] [applause]

weighs in on trent raising wages for workers who are doing some of the hardest jobs in our society is not just the right thing to do. but it's also good for our economy. including the federal reserve and every dollar increase in the minimum wage. workers spend an additional $2800 in their local community. minimum-wage workers do not admire money in a bank vault. but they spend it quickly and locally. a shot in the arm to our mainstream businesses. let's get this job done. let's make our economy worth it for working families. another way to help our working family is the earned income tax credit. a tax credit that president reagan once said was the best anti-poverty and the best profamily and the best job creation measure we could devise. in the last five years, we have doubled as tax relief for illinois working families. over the next five years we should double it again.

when more people enter the middle class, our economy grows. 43% of all workers in illinois, more than 2.5 million people, have no right to a single earned sick day. among the low-wage workers, the problem is worse. 80% of low-wage workers do not receive any earned sick days. we need to do something about this. we should provide at least two earned sick days for every worker in illinois. we need help our workers. especially so they can avoid the awful choice, dragging themselves with the dead to work for losing a days pay. or maybe even their job. more than 70 years ago president franklin roosevelt said that the test of our progress is not whether we add more to the abundance of those who have money, but it's whether we have

provided enough for those who have to live. this, too, is about dignity and decency. let's get this job done for working families. five years ago this very day, i stood before you and i asked for your prayers. illinois was in a state of emergency. and there is no quick exit. there were no easy solutions. recovery on trent required tough medicine and unpopular medicine and it would take time. but like hard issue after hard issue and never giving up, we are getting the job done. illinois is making a comeback. rating agencies are setting positive signals for the first time in recent memory. the backlog of bills is going down. unemployment is at its lowest point since the economy crashed. according to the most recent federal reserve bank report, in the next six months illinois is

projected to have the best economic growth of the five largest states in america. of course, we have financial challenges still ahead. and we will be talking about the best way to meet those challenges with the upcoming budget. but the fact is our recovery is strengthening every day. and we are leading that recovery in a way that cares for working families. hope frances has said we have a financial system which rules rather than service. ..

we have led illinois come back. one not step the time. work to repair decades a damaged commend we are getting the job done. let's keep our shoulder to the will and finished that job of. and it's like the will of the people of the land. thank you. [applause] [applause] >> thank you, mr. speaker. a move that that joint session now arise.

>> the president of the set has moved the joint session arise. all those in favor say aye. >> of the examiner pointed out that governor quinn's comments about eleanor making a comeback is not reflected in held local residents feel about current conditions in the state. according to the article governor quinn's approval rating is low among constituents. despite his call for increasing the minimum wage and spending more on early childhood education bill lawyer reportedly remains one of the most financially broke states and the country. no nebraska governor giving his last state of the state address to lawmakers that the state capitol in lincoln. governor evan kemp office in 2005 cyber. his remarks run about 15 minutes. [applause]

>> thank you very much. >> thank you very much. >> thank you very much. mr. president, mr. speaker, members of the legislature chairman, distinguished guests, friends and fellow nebraska's, to begin my remarks today by thanking our fellow citizens for their dedication and commitment to their communities, our state, and the united states of america . our nebraska values, personal responsibility, family, hard work, and fiscal responsibility have kept nebraska in better shape than the rest of the country. we have learned how to compete in global markets. we strengthened nebraska's education system by focusing on

academic excellence and academic improvement. we care about our children. every legislative session we tackle the tough issues head on, and we made the difficult decisions that moved nebraska forward. we have our responsibility to provide our citizens and future generations with the opportunity to succeed. this session will be no different. the issues that we need to resolve and the course that we need to charge for our state is serious and substantial. not everyone will agree on every issue, but our decisions were greatly impacting nebraska's future success. so let's begin our conversation today about one of those challenging and important issues, health care. president obama said, if you like your current health care plan you can keep it. unfortunately that is simply not true for. millions of americans have received cancellation notices

because of their current health care plan because of obamacare. the implementation has been one disaster after another. deadline after a deadline has been missed. president obama promise the american people that if you already have insurance his plan would reduce your insurance premiums of $2,500 per family per year. again, this is not true. the facts show otherwise. the institute analyze insurance rate changes as a result of obamacare and found that nebraska's will be among the hardest-hit americans. the required parts of the new federal health care law low will cost the state of nebraska more than $200 million in state general funds of the next six years. that is $200 million in funding that could be used for education . president obama and his white house political operatives in trying to pressure nebraska into

expanding medicaid, but nebraska will not be intimidated by the obama administration says. the yen's state supreme court said obama's medicare in beijing is optional. it is up to each state to decide how they want to proceed. the financial reality of expanding medicaid is simple. expanding medicaid will result in less featured above for state aid to education, special education, early childhood programs, the university of nebraska, or state college system, and the community colleges. additionally, the federal government is already trillions of dollars in debt and is unlikely to fulfil its promise commitment. we have seen this happen before. for example, the federal government commitment a special education funding has not been met. we researched a steady the medicaid expansion issue carefully, thoughtfully, and methodically. the irresponsible choices is to

reject this optional medicaid expansion. another important issue that needs to be addressed is nebraska's approach to crime and punishment. there are short-term and long-term components to this issue. allowing the most loyal and criminals to enter into our state prison system and to have their judge impose sentences automatically reduced by one after the use of the current good time program is not sound public policy. as you know, the current law allows violent criminals to automatically receive a good time the moment they enter in nebraska correctional facility. violent criminals should be required target time. i have done all that i can administratively by changing the rules and regulations that allowed the department of correctional services to take away twice as much good time

when a prisoner assaults are corrections official or another inmate. now it's up to you. the nebraska legislature to reform the good times will. the recent murders were a wake-up call for everyone of us. the people of ormoc, the citizens of nebraska should be able to walk the streets of their neighborhood without fear of being shot. another important issue regarding prison capacity is of long term department of corrections services study. this study will provide as valuable information, although the long-term needs of the pre -- state prison system. as the study will not be completed until this summer, it would be premature to recommend what the future needs are for the nebraska correctional system in the meantime we are addressing short-term prison capacity issues. funding for additional security staff, contrasting with county jails, increasing the work ethic

prisoner population and reducing the number of federal detainees in nebraska's prison system. the other critical crime issue that should be addressed and also to some reform and punishment. i am prepared to work with the nebraska legislature, the nebraska supreme court, the department of correctional services and the council of state governments in developing zero long-term prison capacity strategy. there may be opportunities for our state to enact innovative solutions that ensure public safety at a lower cost for our taxpayers. and also look for to of fiber discussion of the proposal to enact a limited supervised release program in order to reduce the number of prisoners who reaffirmed after they leave the state prison system. panera let's discuss the biggest and most important issue facing the state of nebraska, high taxes. why is this issue so important?

tax relief is a major driving force for economic success. nebraska is a strong agricultural economy will continue to exist with unreasonably high property taxes . when agriculture fares poorly, so those rural nebraska. however, when agriculture succeeds camauro nebraska and may street and abreast a flourish. the success of small businesses is also an essential component of nebraska's economic fatality. high taxes split their growth in their ability to create new jobs here is the reality we're facing over the past decade median family incomes and nebraska have declined. food prices are up, health care costs are increasing, and middle-class family take-home pay is him. here's the good news, you can help nebraska families. the nebraska legislature can

increase family to copay by lowering taxes. middle-class families, farmers or ranchers, small business owners need our help. and going to fight for a responsible and meaningful tax relief for restaurants, and i hope you will, too. they're counting on us to help them, you and i both know taxes are one of the toughest and most difficult issues to resolve, but that is what leaders are for, solving complex challenges. tax issues are multifaceted and nebraska. local governments decide property-tax rates. state governments set income tax and sales tax rates. i appreciate the discussion that the tax modernization community had regarding taxes, but it is time for the legislature to act. we don't need more time to study this issue. we already know taxes are too high. high taxes are detrimental to economic growth.

it is time for a straightforward conversation about property and income tax relief. nebraska is no, the legislature does not set property-tax rates. for example, the city council decides the property tax rates, not the center had leaked even though he is chair of the revenue committee. the lincoln public school board sets the property tax rates for help ps, not senator sullivan and even though she is chair of the education committee. the tribasic and arty set property-tax rates for their energy, not senator carlson even though he is chair of the natural resources committee. county boards, overall fire districts to a community college boards, educational service units and other local government entities set property-tax rates, not the legislature. when local government spending increases property taxes go up.

we need our partners and local governments to slow the rate of growth in spending in order to achieve real property tax relief in rural nebraska record high property taxes are hurting our farmers and ranchers because they have experienced dramatic growth in agriculture land values. with an action economic prosperity is a risk. we can help our farmers and ranchers by supporting the nebraska farm bureau proposal to lower ag land valuations from 75% to 65%. that is one part of tax relief. the other challenge is nebraska's high income taxes and the nebraska legislature sets those rates. nebraska's high income-tax rates are among the highest in america , and higher than all of our neighboring states except one. lowering nebraska's income tax

rates is essential to attracting higher-paying jobs. nebraskan needs more middle-class jobs. in the $60,000 to $120,000 a year category. nebraska is -- they need good paying jobs. small businesses need lower income-tax rates to help grow their businesses and increase jobs. nebraska does a significant amount of work to attract new businesses through the nebraska damage program, but we need to do more to help existing businesses grow. the business community supports lowering income tax rates, and i agree with them. taxes are too high and nebraska, and we can do something about it. we can help the rest is middle-class families, farmers, ranchers, small-business owners. it staying the course is not an option unless you support lower

family incomes and more families on food stamps. we need higher-paying jobs to reverse the decline in nebraskas median family income. we need higher-paying jobs to increase the state population and growing jobs requires a more competitive tax environment. when we talk about lowering the top individual tax rate, some will argue that it only benefits the wealthy and the state. that is not accurate. if you are a single person in nebraska with an adjusted gross income of just $29,000 a year, $29,000 a year or a married couple are in $58,000 a year, you are paying and the rest is highest income-tax rate. a middle-class family with one spouse earning $35,000 a year as a teacher and was bouse earning $50,000 a year as a small-business owner pays taxes

at nebraska's highest income tax rate. if you are a nebraska farmer earning $25,000 a year, your spouse works at the university of nebraska raised $55,000 year, this mill class family also pays taxes at nebraska's highest income-tax rate. helping these hard working the restaurants benefits are middle-class families. senator had lee and members of the revenue committee, you can lower taxes on the breast is a middle-class families to a former store ranchers, and small business owners. i am willing to work with you anytime anywhere to develop a responsible and meaningful tax relief plan. in nebraska can afford to get -- tax relief. to them and providing you to financial status reports that clearly show that we can afford up to $500 million in tax relief over the next three years

because nebraska has a growing economy, strong cash reserve, and we have worked hard to control state spending. of want to share with you one other important piece of financial information. the state of nebraska has $1 billion in cash in its checking and savings accounts. that's right. as i stand before you here today the state of nebraska has over $1 billion in cash. nebraska is overtaxing it citizen's right now, and we need to change that. our choices are clear. we can sit back, do nothing, and put nebraskas economic future risk, are we can act and secure a better tomorrow for nebraska. while we are thinking of a better tomorrow, want to

recognize our military personnel in our veterans who worked to preserve our freedom and of liberty. i am very proud of our veterans and the men and women serving in the nebraska national guard, the reserves and are active duty forces. for their families and all the rest of families. let's continue our hard work to make nebraska in even better place to live, work, and raise a family. the choices we make today are about nebraska's future. we must not mortgage nebraska's future by expanding obamacare is medicaid program. we need to protect nebraska citizens by reforming nebraska's good time, and we need to increase the take-home pay of the residence by providing the tax relief. thank you. [applause]

>> from nebraska news analyst, about half of governor -15 minutes speech was devoted to the idea of cutting taxes, amos is the of going governor focused on last year as well. the nebraska radio network reported that the approach this year was different. governor-and for going last year's call for doing away with the state income tax and focusing instead on the idea of reducing the state's cash reserve and be more prudent in spending. now to south dakota for government to mr. dugard stated the state address. he delivered the speech before the state legislature at the capitol building. he is the 302nd governor of south dakota having been elected in 2010 after serving two consecutive terms as the state's lieutenant governor. his address is an hour and ten minutes.

[applause] [applause] [applause] [applause] [applause] [applause] >> thank you so much. thank you.

thank you very much. it is good to have you back. before i begin to day of would like to recognize a few new legislators who are joining is this year. at the budget address i recognize senator blake a representative dave anderson, and representative chris langer. today i would also like to recognize senator chuck jones and also senator allen flannel. all five of you please stand and be recognized. [applause] [applause] [applause] i can still remember how i felt on my first day. welcome to all of you.

governor is here. there he is at the back. would you stand? welcome, governor. [applause] welcome. this is my fourth state of the state address, just over three years ago in my inaugural address, you might remember a favorite quote that i included for president calvin coolidge. he said this, nothing in the world can take the place of persistence. talent will not. nothing is more common than unsuccessful and metallic. genius will not. unrewarded genius is almost a proper. education will not permit the

world is full of educated derelicts. persistence and determination alone are omnipotent. no, i would never belittle the importance of education or knowledge. neither did president coolidge, but he identified the essential elements of success to the persistence and determination. in other words, artwork. south dakota's believe in hard work. we promote south dakota has a good place to do business, we promote the work ethic of our people. those who do business in multiple states, including south dakota, will often remarked to me that the south dakota and location is the most productive because we know of a worker. in short, s.d. works because south dakota's people know how to work. we succeed and excel because we work hard and stay true to our values. we can be proud of the many ways in which south dakota excels.

clearing the past year objective outsiders have recognized our state for excellence. last april the united states chamber of commerce recognized south dakota as having the nation's best business climate. last june the u.s. department of commerce release their study of regional prosperity and identified south dakota as having no lowest cost of living in the nation. then in july cnbc named south dakota america's top state for business. south dakota's other implement rate fell again last month. the second lowest in the nation. even as nevada and rhode island still struggle with 9 percent unemployment. in some metropolitan areas in arizona, california, illinois, and new jersey have unemployment rates of 12% or worse. only 15 states have recovered all of the jobs those states

lost in the recession. south dakota is one of the. today south dakota has over 10,000 more jobs than we did before the recession. south dakota, in fact, is two and a half% above our pre recession peak. the nation remains about 1% below pre recession levels. south dakota's average personal income growth continues to be among the highest in the nation. in the third quarter of last year personal income growth compared to the same quarter in 2012 was the highest in the nation. we have reached another important milestone as well. our per capita income now exceeds the national average. numbers available for 2012 indicate that the average resident earns about 3 percent more than the average american. one consequence of western and the economy is that 2013 saw a

1% decrease in the number of people on medicaid. at two and a half% decrease of those enrolled for food stamps. this is the first year in recent memory that enrollments in these programs have dropped. of course not all our economic, and we can be proud of our success in many areas. s.d. continues to be among the nation's best in immunizations and for the percentage of the population who got a flu shot. our young people understand the value of education. our high school graduates go on to college or test of one of the highest rates in the nation. was the students graduate, art student loan default rates shows that those who have to borrow are eager to pay back. and although we must be always mindful of long-term funding needs south dakota's 8,000 miles of paved state highways link for

a five for quality. i stayed bridges break 91 of 100 on the 100-point scale. this year we're going to be completing construction of south dakota's portion of the heartland express weight which we began in 1997. and we have reached an agreement with the city of sault falls to jump-start progress of the northern part of highway 100 which will eventually connect i 29-990 traversing the southern and eastern edges of some false. we also continue to protect our environment. 98 percent of our state's community water systems meet or exceed the national primary drinking water standards. that is the same. we are one of only seven states in the nation that meet all air quality standards. we can be thankful that south dakota is lower suffering from drought. a year ago at this time 100 percent of the state was in drought conditions, and

97 percent of that was severe drought. today only 4 percent of the state is classified as abnormally dry, not even draw level. and none of the state is even classified allies. we have been raided on the top five states in the nation for our high credit scores will one of the best case in which to retire in for volunteerism. it should be no surprise that an analysis last year of those posted on the internet shows up to cut loose smile more than people in any other state. and as see you smile. there you go. and of course i am very proud of the decisions we have made about our state finances. restructured and balance our budget without using any financial gimmicks. we conservatively estimate revenue and enjoyed modest years of surpluses. one of only a very few states in the nation to have a public pension that is over one under%

funded. last year we refinanced our tobacco resulting in a $43 million present value increase to the education enhancement trust fund. we have done it all without raising taxes. achievements like these in our low debt load led to south dakota being named the best run state in america in 2012. [applause] some of these achievements were caused by could decisions that you made and other governors made over the years, but the real credit should go to the people of south dakota. tell us what kind of lost their water don't. what to regulate and what not to regulate whenever we face a challenge south dakota's roll up

our sleeves and work together to find a solution. two years ago i used my state of the state address to speak to you about work-force. i announced the south dakota work force initiative or south dakota winds, a 20-point plan to give more south dakota is trained and ready to work in a rapidly growing and changing south dakota economy. south dakota wins included four categories of effort, and i would like to briefly up to you on some of the progress we have made in each of these areas of the past couple of years in share new proposals to continue up progress. the first area of south dakota is preparing our youth. we need to prepare are your people to live and work in the 21st century, and we need to give them the information they need to make wise decisions about career choices and academic programs. students need to know that if they enter high need field they will find a job and south

dakota, and it will make good money in that job. over the last two years the state has continued to strengthen an on-line portal for students and parents to research career and academic options. we piloted new programs to remediation to help morse to succeed in post secondary programs, and we organized and promoted career camps and engineering, information technology, healthcare, and the skilled trades to expose students to up nine new career fields. over the past year i focus my attention on the need to offer high-quality ct, career and technical education in our k-12 schools. it is at the intersection of education and economic development. while many of our schools offer good c t e