>> 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 st to research career and academic options. we piloted new programs for remediation in high school land at the university to help more students succeed in post secondary programs and we have organized and promoted career

camps, engineering, information technology, healthcare and skilled trades to expose students to those high need career fields. over the past year i focused my attention on the need to offer high-quality career and technical education in our k-12 schools. this is the intersection of education and economic development. many of our schools offer good programs, these expensive programs can be difficult to offer and maintain especially for our smaller school districts. i can't overstate the importance of these programs. c t e programs are closely aligned with our workforce needs from welding and machineing to health care and information technology to engineering and biosciences, these programs give students experience so they understand these are opportunities to work with the

latest technology hands-on and even higher education opportunities are available after high school right here in south dakota at our universities and technical institutess. council session ended last year. i am staffed with my office and the department of education to reach out to those who are engaged in ct e programs. over the spring, summer and fall the visitor all four technical institutes as well as high school ged programs. they held a series of meetings to listen to over 40 high school administrators and educators large schools and small, and learned about innovation already occurring in our state. fortunately working together to provide the tea is not a new idea for south dakota schools, northeast technical high school has provided programs for other school districts for decades. in northwestern south dakota consortium of eight school

districts uses portable lamps in semi truck trailers to share programs and equipment. in sioux falls the new c t e academy is providing cutting edge programs to students from all districts in that area. we need even more innovation like this and today i am announcing $5 million in future funds this year to support a series of governor's grants for ct, this will help schools joined together to strengthen the current offerings. the department of education issued a request for information to schools last fall. maybe you heard about it and we received proposals from 26 districts totaling $20 million in requests. we work to nail down a request we received and sharpen the applications and we can do it all this year. i believe these grants are a big step for creating new opportunities for young people to learn, work and live in south

dakota. this year we are going to help finance more high school students to take dual credit courses, partnering with technical institutes to provide courses that award high school credit and post secondary credit. state universities have partnered for years with high schools to make do will credit opportunities available. cools can't typically pay for university or technical institute credit and in some cases the cost of the higher ed credits makes these opportunities cost prohibited for of family. right now college or tech school credit can be obtained for some courses provided by the high school if the high school course and instructor are approved by the college or tech school. for example in college dual credit cases students who pass the approved high school course can pay $40 per credit hour and

get college credit in addition to their high school credit. however, if a high school student takes a course directly from the college such as composition, online for google credit that student pays $300 for that business class. bfi 15 but i proposed last december proposes funds to help make these opportunities more affordable using a combination of state funds and discounts from the regions and technical institutes we propose to bring down the cost of every level university and technical institute course. that way students can take dual credit courses from the universities or the tech schools directly at the low $40 per credit hour. dual credit opportunities are a win/win/win. students who start with some credits already earned are more likely to complete on time and

at less cost. universities and technical institutes get the opportunity to make themselves known to prospective students and help prepare them for success when they graduate. high school gain flexibility to offer more opportunities for students at no cost to the district and the state gets more young people who are ready to succeed and live and work in south dakota. offering training for skilled jobs is the second major area of south dakota wins and we have made major strides in this area, we created a new welding and manufacturing program that mitchell tech and this fall 23 of 24 are full. we also expanded the welding program. and to prepare for a productive life after prison. and the tech schools have created innovative distance based machine mr. chen and welding courses that combine on

line and hands-on balance. these distance based programs of all research students in 7 different south dakota communities. our technical institutes strive to teach using cutting edge up to date equipment but that can be very expensive. last month i asked the technical institute to let me know their highest needs equipment upgrades, and awarded $3.8 million in future fund grants to the technical institutes to fund many needed upgrades in our work force priority areas from hemodynamics monitors used in cardiovascular procedures to computer numerically controlled robotics trainers used in manufacturing to telecast productions whiches used in satellite communications just to name a few. these judges the few of the upgrades that will offer significant improvements to our technical institute programs.

in addition i am announcing i am awarding the technical institute and other $1.5 million, half a million dollars a year for the next three years for scholarships in 20 high need program areas, the scholarships of up to $5,000 for two year programs will be awarded to students who agreed to stay in south dakota and worked in a high need field for three years. another important work force need is rural health care. that is the third area of south dakota wins. between 2010, and 2020 south dakota will need to 8,000 new health care workers. this will be a challenge because our elderly population is expected to double by 2025. most of our state health professionals are concentrated in the more populated areas. rural areas have been struggling to recruit and retain providers. 53 of the state's counties are

federally designated as professional shortage areas partially or completely. health care providers race in south dakota, educated in south dakota and on-the-job training in south dakota are more likely to stay in south dakota and we have to work harder to make that happen for rural areas and that is where we have been focusing our efforts. we made important strides. two years ago we expanded the rural health care facility recruitment program for fields such as registered nurses and physical therapists. as a result of this expansion we have 120 health care professionals that were successfully recruited to 49 rural communities including communities like scotland, mich. timber lake. we also need more capacity in our educational programs. in fiscal year 13 we increased the size by four students and in my budget this year i am proposing we add another 11

students per class. that means in five years we will need 60 more students being trained in our state than we did before the expansion began. in the future we must work to add residents to keep these additional med school graduates doing their residency training right here in south dakota. we have increased the capacity of the physician assistance program from 20 to 25 students and reserve 20 of those for south dakota. for the first time we are paying sectors that provide practice experiences for physician assistants graduates. this has increased the number of willing preceptors in south dakota. in my budget proposal for at why 59 encouraging you to provide the same financial incentives for nurse practitioner preceptors. again if we can keep these graduates doing their on-the-job training after school in south dakota is more likely we can keep them working in south

dakota. to encourage practice and rural areas the f y 13 budget included funding to establish rural medicine program to give third year medical students a 9 month experience in rural communities. these programs are important because students with good rural experiences are more likely to practice in rural areas. fourth and final area of south dakota wins is our effort to attract more workers to south dakota. i mentioned in my budget address last month the new south dakota program designed to recruit workers from our state has worked more slowly than we hoped. conversely we have seen great success with the dakota program which focuses recruiting efforts on former south dakota as to come back home. since it began in 2006 more than 3,000 people have returned to

south dakota, a small investment of marketing dollars two years ago has led to an 89% increase in annual dakota registrations and 66% increase in annual job placement in that two year period. my budget proposal refers $4 million of the $5 million initially appropriated for new south dakota's but also proposes to appropriate half a million dollars in one time funds to continue to strengthen the successful program to wind down the new south dakota program. the issue of work force continues to be a major challenge for our state. low unemployment rate is a sign of economic strength but also means it is difficult for employers to add more jobs even if they have the business to justify it. over the next several weeks i will be going on the road to carry this message to several communities around the state.

i will address chamber of commerce groups, visit with editorial boards and meet with employers about their work force needs. then, after a session ends in the spring and summer we will organize larger work force summits around the state and i will invite use those that the business and community leaders can come together to review our current efforts, learn about demographic and work force trends so we can learn from them and discuss what we need to do next. two years ago south dakota wind initiated important efforts to address this challenge by strengthening k-12 and tech ed, health care shortages, trying to bring more workers to our state and other efforts. some of those initiatives have been immediately successful. and the challenge of work force would not be overcome easily, and to focus on this issue, this

year to come. and a review of state criminal justice system. chief justice legislative leadership and i formed a work group to study prison population, using a data driven approach. and improve public safety, hold offenders accountable. then the legislature passed an extensive reform of the system, public safety improvement act. these reforms included measures, offenders accountability, supervision, and focus prison space on violence and career criminals. i am pleased to report over the last ten month executive and judicial branches, insuring

delivered implementation of the act. several parts became effective last july, others became operative last fall and some took effect we do weeks ago. development teams are vigorously working on a few remaining issues but regardless of the difficulty with transformational change. and receiving very positive reports on implementation so far. let me give you an example. holding offenders more accountable, those most likely, last july turned discharge credit. this policy allows compliance parolees to reduce the duration of their parole. 30 days reduction every time

they complete 30 days of perfect compliance. empirical evidence shows reducing recidivism, laurel violations, reduce caseloads and allow parole officers to focus on more high risk offenders. from july through november, 91% of eligible parolees are compliant. and fines and restitution, over 342,000 days of parol credit have been earned. in cumulative years, parolees supervised by each parole officer, experts tell us it will take two or three years to complete implementation and 3 to 5 years to see all the results of combined efforts. however early data suggests reforms you pass will succeed, will continue to closely monitor implementation of the law to ensure our three goals of

increased public safety, offenders accountability and reduced spending. the other major piece of legislation that passed last session was senate bill 235 which created the building south dakota fund. this important legislation allows the state to partner with local economic development efforts and recognizes the crucial role infrastructure and career in tech and play in growing the state's economy. i discussed some efforts i made in some of these areas and building south dakota in shores we will continue to focus on these issues in the future. $3.4 million in grants have been awarded since building south dakota's took effect last year and the legislation is also providing extra funding for schools to support english-language learners. in the budget address, i discuss my proposal to change the funding mechanism building s.d. again by refunding building south dakota with $30 million of

one time dollars you can free online dollars for other priorities. i know many of you wonder what this proposal would mean for the future of building south dakota and the bill i introduced will ensure this program is funded for years to come. thanks to your commitment over the last three used a conservative budgeting south dakota has enjoyed a budget surplus each of the last two years so long as we say true to those principles, we expect that to continue more often than not. under current law budget surpluses are transferred into budget reserves as part of a rainy day fund at the end of the fiscal year. i am proposing to change that in certain circumstances. under my proposal the first priority for surplus funds will be to keep our rainy day fund at 10% of general fund appropriations for the year just ended. once that is matched the second priority will be to automatically pre fund building south dakota so the programs

always funded at least one year in advance. it is important to remember the $30 million of refunding i already proposed secures the building south dakota for more than a year into the future. in addition i believe we all agree this program is a prudent place to invest dollars midsession. if we are conscientious about investing one time dollars in the years when we have them the automatic funding that i am proposing will never be necessary. my proposal will guarantee that building south dakota is the first in line for you end funds when our rainy day funds are added. building south dakota created some important new tools to aid our economic development efforts. thanks to our business climate we have seen many businesses expand and add jobs over the last three years. for example in the manufacturing

sector two texas-based company's expanded to take advantage of the opportunities in the oil and gas fields especially in north dakota. they will bring 105 jobs to the area. a third texas company, w. l. plastics began production in a new rapid city location last august adding 43 jobs. in 2012, a cagey north american operations, a german based company that provides aluminum heat exchangers added a new addition to its mitchell facility to create space for 215 jobs. last year farm and energy, a quebec based manufacturer of wind towers purchased 150,000 square foot building in brandon. they are expanding the facility over 200,000 square feet and will employ 250 people this year. we have seen growth in the financial and professional business services sector over the last three years.

t c f bang, capital one and t m one have expanded in south dakota. these expansion alone account for 750 new jobs in south dakota. we have seized opportunities in agriculture, our state's number one industry. nutritionally, up flaxseed processor will cut the ribbon on their new su falls plant in april. colts processors, a processor of edible beans, ground last october, in 2012 we announced bell brand usa would build a new cheese processing plant, construction is on schedule and should open later this year. to ensure a strong milk supply in the state's 7 other milk processing facilities we initiated a plan to expand our dairy herd through county site analysis programs, state officials worked hand in hand with local county commissions and landowners to identify the

best locations for new livestock operations and development. as a result south dakota berries in the process of adding 8,000 cows to their existing her danceable counties issued building permits for new dairies that could expand the state dairy herd by another 15,000 cows. by embracing local control and working together with counties to fight these facilities, we are capitalizing on the clear economic advantages with livestock agriculture. weather in manufacturing, finance, agriculture or elsewhere, the strong economic growth is due to the hard work of the employers and employees of many companies and up wise policy decisions you have made to preserve a strong business climate. is also due to the efforts of local economic developers and staff at the governor's office of economic development. before i move on i would like to speak for a moment about the concerns are around alleged

wrongdoing by former employee of the economic development office. i call for an investigation into this matter last spring. i released the attorney general's findings available to the legislature and to the public last fall. good stewardship of public money is very important and i know that every legislator and every south dakota and shares this concern. in november i sent everyone of you a memo explaining that in addition to the attorney general's investigation i have ordered three separate independent audits or reviews of the economic development office in response to this situation. one external auditor is reviewing every person may enter several economic development programs reaching back as far as 2009. this review will verify there was a signed agreement for proved application, supporting documentation for every disbursement and each payment amount was correct and check or

electronic payment was made to the intended recipient. the second review conducted by your department of legislative audit which is independent of the executive branch and reports to you, the state legislature. legislative audit is performing a financial and compliance audit of the financial statements for all government funds in the economic development office again reaching back to 2009. the attorney general received a court order you probably read in the paper authorizing him to release records he obtained during his investigation to your auditor general to aid in this audit which will supplement those audits that legislative audits already performed of some economic development programs. another third independent auditor is conducting an examination of internal procedures. this review will look for weaknesses in policies and procedures and will make recommendations to ensure the economic development programs

have adequate internal controls to safeguard public funds. in addition, members of my team are working with the state auditor's office to include internal practices regarding travel reimbursements. they will be proposing administrative rules that will require additional justification for travel reimbursement submitted after 60 days. we are implementing new protocols for submission of travel expenses at the agency level. the state auditor is considering processes to make sure reimbursements are not duplicated. all of the reviews and audits are expected to be completed by the end of january and will be shared with you, the legislature and the general public. when results are known i will work closely with legislators to decide how they should respond to the results and determine if further reviews are warranted. this is the serious matter and it deserves serious attention

from state officials. it is important to be thorough and comprehensive even if doing so takes more time. my goal moving forward are threefold, to continue to cooperate in any way with federal investigation, cover misappropriated state funds if possible and to use these extensive audits and reviews to find ways to improve our processes. another topic i know many of you heard about is the common core state standards adopted by south dakota in 2010. the common core standards are the product of the state levered by governors and chief education officers to provide a clear and rigorous set of academic standards for mathematics and language arts. standards were not written by the federal government, are not required by the federal government and south dakota receives no federal funds contingent on adopting a common core standards. we need to have content

standards and we need standards that are rigorous. we need our students to learn english and math and we need them to learn how to think independently and solve problems in real-world situations. these were the goals of those who wrote, evaluated and adopted a common core standards and i support those goals. for many people, however, the common corps has come to mean much more than that. it encapsulates our opposition to federal interference in education, concern about the privacy of individual student data and our strong belief in local control of our schools. i share those concerns as well and i hope we will all work together this year to protect our students without undermining the important goals of rigorous and competitive content standards. i spoke earlier about good finances. and the budgetary picture is good but there is one area of

concern, an area of concern when i delivered the budget proposal last month. it was a concern a year ago and it was concerning two years ago. i am talking about bank franchise taxes. in 2011 when we struggled to balance the budget we had a repayment liability hanging over our heads, a bank franchise tax problem. in my budget address in 2012 acknowledged the possibility we might not receive any revenue from bank franchise taxes. i told you there was adjusted bank franchise taxes downward for f y 14 and this revenue source is significantly lower than historical levels. bank franchise tax problem. why is this revenue source so unpredictable and so volatile? let's understand how the tax works. first, understand how the bank franchise tax is levied. for community banks, banks could do their business primarily in

south dakota, the tax is very straightforward and stable. community banks do virtually all their business in south dakota. most of the tax is calculated on virtually all their business. for large interstate and international banks who do business in many places both inside and outside south dakota, the bank franchise tax is volatile and problematic. those banks need to identify the share of their business activity which should be apportioned to south dakota and calculate the tax on that share. s.d. uses three factors, property, payroll and receipts. the first factor is property and it is a straightforward calculation. how much property does interstate bank have in south dakota versus everywhere. if a bank has $5 million for property in south dakota and $100 million of property everywhere it gets 5% of its property in south dakota.

that is a factor. the second factor is payroll. that is very straightforward. if the bank has $10 million annual payroll paid to south dakota and $100 million paid every where it has 10% of its payroll in south dakota. pretty straight forward. the third factor is the receipt factor. that is where we have a problem. our apportionment of law was last amended in 1977. before congress approved interstate banking, before personal computers, before the internet, before mobile computing south dakota's three factors have been unchanged since 1977. think about 1977. in 1977 if i wanted a loan i went into the bank, signed papers, and paid my interest payments to that bank. it was easy to determine the location of the receipts.

then came interstate banking and the internet. now i might go on line in colorado and connect to a computer in nevada to apply for a credit card. the computer might have some algorithms by which it screens me automatically but if my credit history is marginal my file might get examined by a real human person in south dakota. if i get the card i might send my payments to a payment center in new york. if i have a problem with the card i may call a call center with customer support operators and they might be in ohio. with all the locations involved in these credit-card matters, who is entitled to claim the receipt? this is the problem confronting interstate banks and the department of revenue. it makes calculating the tax a nightmare and auditing virtually impossible. we need to modernize our statute but we should also maintain our tax revenue.

i will say that again. maintain, not increase our tax revenue. south dakota is of very good place for interstate banks. in a recent study, banks in south dakota ranked number 2 in net income, number 3 in total assets, number 3 for return on assets, number 3 in net loans, number 3 in total deposits. several interstate banks of located there charts in south dakota because of our stable regulatory environment and even though more banks are locating in south dakota our bank franchise tax revenue has fallen in recent years. here is how revenue has dropped. looking back 20 years if you look to the left of the black line the actual bank franchise tax collection the state has received through 2013, if you look to the right of the black line the first two lines are what we have budgeted.

in f y 14 and f y 15. today i believe if we do nothing in this area, the far right bar is what will collect at the state level and we have to adjust our expenditure level down from the budget i proposed. i will be bringing forward legislation to address this issue in a way that does not, i repeat does not impact our s.d. community banks. it will impact nine very large interstate banks doing business in south dakota. but it will not, it will not increase the total tax paid by these nine banks collectively over historical averages. let me say that one time. it will impact nine large interstate banks but it will not increase the collective tax fees nine banks have paid

historically. over average years. this legislative session i hope to have your support to address this problem, not to raise taxes, but to preserve what modest taxes we have. if you agree, we will have more stability, more transparency, more simple tax administration. and south dakota will remain one of the lowest tax environment in the country for all banks. last summer one of our large daily newspapers ran a series of articles describing how citizens have been seriously hurt by an insurance carrier doing business in our state. after reading the articles i asked the secretary of labor and regulation to investigate how we regulate the insurance industry and how this could have happened. a few weeks later she issued a report that found the division of insurance lacked statutory authority needed to properly

protect consumers. our division of insurance cannot find carriers unless the carriers themselves agreed to the penalty. the division cannot inform affective consumers, if the insurance carrier has agreed to remedial action. most states have adopted some version of a national model unfair claims act setting forth the basic requirements carriers need to follow when rejecting claims. south dakota has no such law. despite proposals to do so in 1994, 1997, 2006, 2007, and 2008. i think you know how much i believe in south dakota's common-sense regulatory environment. i don't like overregulation. there is, however, a vital role for government to play in protecting consumers. the division of insurance will bring four bills to address the

deficiencies in our current regulatory landscape. this is the year to get these bills passed and i hope you will join me in supporting them. beyond protecting consumers, a government that serves the public in an open, efficient and accessible way that is important to us all these principles of openness, efficiency and accessibility underpin the greater government initiative and i began three years ago. unless there is a clear compelling reason government information should be open and accessible since i took office there has been considerably more information on line. every economic development grant is listed on line. restaurant inspections are now on line, the department of environment and natural resources has put all gas and water drilling information online. we released the invitation list from the governor and other economic development events. a couple of months ago we took another important step unveiling

a new state website, rules@sd.gov. the public can submit their feedback. the site is based on the o r c website for tracking legislation and makes it much easier for the public to be involved in the rulemaking process and moving to mobile platforms, and excellent outdoor air when for hunters and fishers, department of tourism for visitors who come to our state and travelers can use the department of transportation's new 511 apps to check road conditions. federal government is also about finding a places to rollback government and i will be proposing another package, the nature of government to add to the body of laws, running for office you have probably been asked if elected what will you do? we sometimes take that to mean

what law will you pass? we measure productivity by the number of bills we pass but when it comes to laws more isn't always better. we shouldn't place unnecessary hurdles before our citizens or offered for nors. things shouldn't be overcomplicated. we have gone a long way in removing unnecessary red tape and state government, during 2012-2013 legislative sessions we repealed 378 and needed rules and 919 obsolete sections of law totaling 148,000 words. almost as long as this speech. i am sorry. i am going off script now. the executive branch will be introducing ten bills to repeal even more unnecessary rules and laws that are just taking the place or causing confusion. let me share a concrete instance where these better government

principles have made a real difference. in the summer of 2012 we had a problem at some of our drivers licenseing stations, many citizens were experiencing wait times of two hours. some had to wait three hours. that is unacceptable. in july of 2012 i announced a comprehensive plan to make the driver's licensing system more efficient and convenient. we extended our hours of operation, instituted aggressive hiring and training programs and developing a new scheduling systems those citizens could call ahead or use the internet to make appointments. we installed self-service kiosks at number, we created a driver's license to preserve the station to handle substantially higher volume and last year i worked with you to pass legislation authorizing online driver's license renewals. steps we have taken a real

difference. before we made these changes only one customer out of ten was served in ten minutes. by last summer four of ten customers were served within ten minutes and in the last few months we serve eight of ten customers within ten minutes of walking in the door. driver's licensing is not the most exciting sexy issue but we have seen real improvement in this area because of changes we made and because hardworking employees at the exam stations and i want citizens to interact with government, all government in a way that is convenient and efficient and i am proud of the progress made in this area. in south dakota we enjoy high quality of life in part because of our great outdoor spaces and people travel from around world to enjoy them with us. we worked hard in the past few years to be good stewards of these important resources. in 2012 by began the black hills forest initiative to address serious mountain pine beetle

epidemic threatening western south dakota. the legislature appropriated $6.2 million to support this work and made tremendous progress. are cost shared program provided direct assistance to 3800 private landowners. our crews surveyed 180,000 acres, 300 square miles of forest land. using progress of forestry techniques we have treated 417,000 vested freeze. hour of aggressive action for black hills forest, the council of state governments. even as we seek to protect natural resources we look forward to an exciting future. and create good earth state park. since its dedication in meet

july, and scenic vistas and walked beautiful trails. to take ideas for the decline in numbers. just as we asked for these deals we go we can identify and implement creative solutions, s.d.'s position as the best pheasant hunting destination. even as we enjoy south dakota's great outdoors our climate is challenging. and the governor's house program. and using in me later in state prison in springfield. and earn them jobs but when they leave prison many south the cohens gain an opportunity to own their homes. and housing development

authority to explore the options to make the governor's house more energy efficient. their first step was to build a prototype that net passive house standard. and the rigorous energy efficiency standard requiring have the installation and air tight around the house, and highly efficient heating and cooling systems and an energy exchanger, and the standard with lower utility bills and the homes retaining survivability in extreme cold weather without power. the demonstration house was built in a few months, up and in spite of these limitations. and the house was put on display at the state fair to educate cutting edge building technology.

building every governor's house would make the house too expensive for the target purchasers but we have redesigned the governor's house to apply many house principles, better installation and windows and air tight envelope, and these houses meet energy star standard which make them eligible for better reinsured mortgages available to energy efficient ones. we have also insured the increased costs of the upgrades is offset by the decrease cost they see in their utility bills. and the potential sale of the road lined by canadian pacific railway. and 15,000 cars of clay and hundreds of thousands of tons of cement every year. i became involved in this issue in december of 2012 when the

canadian pacific announced its intention four short years after purchasing. and be certain any potential buyer will continue to operate the entire line. i wanted to determine whether canadian pacific fulfilled its promises to invest in line upgrades. i believe our efforts over the past year have been a success. last month of federal service transportation board granted the state petition to obtain information we need from the canadian pacific to verify the upgrades have been made. we were supported in that petition by the secretary of transportation and the secretary of agriculture as well as by our congressional delegation. canadian pacific has announced intention for the nation's largest short buying operator. the ceo came to appear last week

to meet me and i am optimistic they will operate the line in a way that benefits our state as they have with similar short lines in other parts of the country. another important piece of legislation passed a year ago dealt with organ donations. we created a new online registry, donor registry makes it easy to register as an organ i or tissue donor. that registry is already beginning to serve its purpose and we have proven their generosity and concern for others. in 2013 we have more than doubled the new registered donors in 2012 and tripled the number we have in 2011. i encourage every legislator and every south dakota and to register as a donor. those waiting for transplants are our friends and neighbors, they are literally in this room today and you know them. we can give no better gift and

the gift of life. i was in courage to propose this legislation by my senior adviser who would not be with us today if he had not received a kidney transplant decade ago. planning to retire at the end of this legislative session after 22 years with state government. she has been a friend and an adviser to me and governor nicholson and brown, and worked closely with many of you in the legislature and we all know how passionate and compassionate she can be. please join me in thanking dab. [applause]

[applause] >> thank you for that. everyone of us is here today because of the support of those who love us, families and friends and i know i wouldn't be standing here today without my wife linda. [applause] linda has worked tirelessly over the past three years as our state's first lady. and up -- summer tour that the governor's mansion she has taken on several important initiatives that focus on our state's children. in my first state of the state address i spoke about the issue

of infant mortality and linda has worked hard on this issue. she j.d. infant mortality task force in 2011 and has spoken around the state to promote safe sleet practices and raise money for the program that has distributed 3,000 cribs to families, child-care programs, foster care providers and domestic abuse shelters. this is a tough issue but state and private health care partners are in it for the long haul. in 2012 south dakota had the lowest number of sudden infant death syndrome deaths we have never had but the overall infant mortality rate went up. we limited numbers for 2013 indicating the rate has dropped but we understand we need to continue to work on this important issue. shortly after i took office linda began traveling the state to promote reading in our elementary schools. so far she has visited the third, fourth and fifth graders

in 242 grade schools, over half of the elementary schools in our state. as part of the foster 1 campaign she travelled across the state to talk with more than 500 people about the importance of foster care and the positive impact foster parenting has on children who need our support. linda has asked that people learn more about foster care and her efforts are paying off. in the last six months the number of people interested in becoming foster parents has doubled. more than 1-third of those people have taken the next step toward becoming a foster family. do me a big favor and thank our first lady. [applause]

[applause] >> i am sure that will payne . joined the national guard's 742 transportation co. 100 soldiers answered the call to duty leaving homes and families for a yearlong tour in afghanistan. since the 9/11 terrorist attack, but south dakota national guard has deployed 7,200 soldiers and airmen overseas. i am happy to report that according to the adjutant general, we believe the 1742 might be the last group that will support the bourse in

afghanistan and iraq. [applause] >> these great men and women represent the finest hour state has to offer and serve and sacrificed much in defense of our state and nation. our returning heroes are creating a new generation of veterans. since south dakota gained statehood in 1889 our state has provided a home for veterans in hot springs. i read the initial state of the state and talk about that home. as i reported last month our plan to build a new veterans home is on track and under budget. since these amber contractors have been busy moving earth and blasting rock. underground utilities are being installed and one old building is being demolished. the new home which will open in

late next year will provide a place for our aging veterans for decades to come. the veterans who live in hot springs are a small portion of the 75,000 veterans living in south dakota and they range in age from world war ii veterans to those just returning from afghanistan. this year the south dakota department of veterans affairs is launching operation reach all veterans, a plan to meet every veteran in south dakota with federal, state and local benefits. the department will host 130 open houses including at least one in every single county, to reach out to veterans. later today i will sign a proclamation declaring today operation reach all veterans day in south dakota to kick off this effort. join me in a round of applause for the service of our veterans and active military personnel. [applause]

[applause] >> as i closed today -- let that bring a smile -- as i close today i would like to return to the topic of work force. last year i complaint -- convene the employment works as a force to focus on employment opportunities for a very specific group, our citizens with disabilities. too often employers with job openings overlook people with

disabilities. according to a 2011 estimate only 41% of working age individuals with a disability were employed in south dakota, less than half the rate of those without a disability. i can't pretend i understand all the obstacles that confront a person with disabilities but i do feel a special appreciation for the disabled worker and the employers who hire them. both my parents were born that and i witnessed the challenges they faced as they job hundred. my father was a farmer but our farm wasn't big enough to support our family and cover the market so dad always had another job. i believe in this world people with disabilities often develop higher levels of determination and accomplishment. like my parents they work harder than most. they have to. good employers know the most valuable worker is the one who works hard, is loyal, honorable and gives an honest they's work

for an honest they have pay whether he is disabled or not. these employers know that hiring people with disabilities is good business. they know adversity builds character and people with character are good employees. for too long some have seen employment of people with disabilities as a favor, done with sympathy. i agree with employment works task force, that needs to end in south dakota. we need to connect employers with employees who have disabilities because it makes good business sense for the employer and we need to start today. we can begin by making the state of south dakota and employers that sets the example for others. there are many examples in which state agencies and service providers work together to provide employment opportunities for those with disabilities and the bureau of human-resources and the department of human services are working together to increase those opportunities in the state workforce.

in the past year the location of rebuild occasional loans persisted over 900 people with disabilities to breach their employment goals. i support the task force's report to make the department of human services a single point of contact to educate employers, provide technical assistance and connect employers with qualified individuals with disabilities. the best thing we can provide for every south dakota and is the ability to enjoy the rewards that come from work. i am not talking about financial rewards. very important of course but i am talking about the sense of self-worth we all gain from accomplishment gained through personal effort and hard work. south dakota works in so many ways because of our values, blizzards, droughts, tornadoes, fires and floods, we always come

together to overcome adversity. as loren will recall her father's words in the long winter of 1881 it has got to quit some time and we don't. it can't lick us, we won't give up. south dakota is don't give up and we saw that proven to us again last fall. the early winter storm hit western south dakota at the worst time for our rangers. they lost tens of thousands of sheep and cattle and sawed decades of work wiped out in a few days but as a friend from union center said to me esther a the next ranger to demand a government handout will be the first one. rangers worked hard, braved the elements and did what they could to save their livestock. neighbors came together to respond to the devastation. state and local governments help clear away carcasses and as of last week the rancher relief

fund has raised $4 million to help those who were her to get back on their feet. $4 million is a lot of money but in comparison to the value of lost livestock is relatively small. still, what is important is what it says about south dakota. we care about each other and do what we can to help when we can. that is what we do in south dakota. we pull together when times get tough, we work hard, take care of ourselves, help our neighbors. s.d. celebrates 125 years of statehood this year, we can be proud we are strong because we have not forgotten those values. what is the state of the state today? it is strong and i know the best is yet to come. let's all work hard this year. [applause]

[applause] >> imus outlet in sioux falls, s.d. reported on governor daugaard talking about coming up with an alternative to expanding medicaid under the health care law noting the republican governor had already objected to the idea of full expansion, writing that, quote, while state such as arkansas and viola had negotiated deals with the federal government to pursue flexible approaches to medicaid

expansion daugaard hasn't shown the same urgency and pointing to the governor's own comments about reportedly not wanting to be too aggressive in pushing for alternatives. ..