new right out of the box attorney general eric schneiderman. [ applause ] >> to majority leader dean scalos. thank you very much, dean. assembly speaker sheldon silver. ♪ ♪ >> senate minority leader john sachlson. assembly minority leader brian cole. to the judges of our great court of appeals. it's an honor to be with you, and a special thank you to the young people behind me. these are high school students who represent new york's 62 counties. they are the future and the state that we are talking about preparing today is the state that we will leave them. we hope they do a good job and we thank them for being with us. thank you! [ applause ] >> my friends, i believe this state is at a crossroads, and i believe there are two very different paths that this state may go down. certain factors are pushing us down one path. the national economic pressure and the costs of state govern iment that we're currently expanding and the function that the state government has been manifesting and the fact that people have lost trust in our government. they would dictate the state's course and there's an

senate majority leader dean scalos. and, look! it's commander sheldon silver! oh, and there i am! and here are the special interest groups with the -- [ applause ] you notice how all of the missiles from the special interest groups went into my battle ship. i would humbly suggest as the new governor that maybe, just maybe, we'll try doing it a different way this year. what do you say? we need to try a different approach and think of it this way. there are basically three flash points when it comes to the budget, the education-funded medicaid and state and local mandates mandates. we want to try a new approach. let's start with the medicaid program. the state of wisconsin actually used an interesting model. the governor had announced across the board cuts on the medicaid program. the industry said they couldn't live with the cuts and what wisconsin did was basically brought everyone in. it was a hybrid alternative dispute resolution meets binding arbitration process. and it actually worked fairly well in wisconsin. the industry came in. they worked with the government and they arc