Thank you. [applause] thank you. Thank you. [applause] mr. Lieutenant governor, mr. President , madam speaker, legislative leaders, senators and representatives, justices and judges, elected officials, officials, distinguished guests, families, friends and my fellow iowans, it is an honor to be here today as your 43rd governor and to deliver my first conditions of the state address. [applause]. As state that we live in where a smalltown girl from rural iowa can become governor and have the opportunity to serve wins at the highest level. And i hope that can be an inspiration to every waitress, every grocery checker, every overworked and stressedout mom, and the little girls who dare to dream. Because in iowa if youre if yog to work for it, those dreams can come true. [applause] i want to begin by taking a moment to recognize the heroes among us, the brave men and women who have given so much of the time, energy and talent on our behalf. To our men and women serving in the military, law enforcement, and as first responders, on behalf of iowans we extend our deepest gratitude for your sacrifice and service. [applause] i also want to recognize with shared sadness, those who are not with us this year, representative greg foristall, representative curt hanson, former Senate Majority leader cal hultman, former speaker of the house don avenson, and former Lieutenant Governor joy corning. Dedicated Public Servants and effective leaders who cared about their constituents and made a difference for the people of iowa. [applause] today, im proud to report to the people of iowa and their representatives, that, because our ability to dream is infinite and the will of our people is great, the condition of our state is strong. [applause] iowa is ranked 3rd bestmanaged state in america, and the number one state for middle class families. Our Graduation Rate is the highest in the nation, while unemployment is one of the lowest. These successes are not by accident. Thanks to the strong leadership of this legislature, last year was the most projobs programs registered session in decades. But mostly the success of our state has come from our people, hardworking and disciplined; innovative and driven. The condition of our state is strong because iowans are discovering and unleashing opportunities in our schools, on factory floors, on main streets, and around kitchen tables. In 2017, i was proud to work with this legislature to move our state forward. So let me take a moment to highlight what we have accomplished together. We balanced the state budget, protecting taxpayers while safeguarding important priorities like education. We invested in our kids at a record level, committing 735 million more for education since 2011. We prepared our students for the jobs of tomorrow, through workbased learning, preapprenticeship and Computer Science programs. We reformed collective bargaining and Workers Compensation laws, putting more power in the hands of local governments and School Districts, Small Businesses, and taxpayers. We protected the ballot box with new voter id laws. We protected life, standing up for the most vulnerable by prohibiting lateterm abortions. And we will never stop working to protect the unborn. [applause] we restored liberties, by strengthening our 2nd amendment rights, and defended taxpayers against costly project labor agreements. We fought for iowa farmers and a robust renewable fuel standard, and we won. And im proud to report the Iowa Energy Plan is delivering action, by continuing to lead the nation in Innovative Energy ideas. But there is still unfinished business. Improving Water Quality is a shared goal of iowans. Urban and rural stakeholders have worked collaboratively making great strides. My hope is that a Water Quality bill is the first piece of legislation that i have the opportunity to sign as governor. Let me assure you, passage of this monumental legislation does not mean the Water Quality discussion is over. Rather it ignites the conversation to implement and scale practices that will continue to make an impact on Water Quality. [applause] as we look back at 2017, its clear we have much to be proud of. But now is the time to look forward. My vision for the future is an iowa overflowing with opportunity, opportunity for our working families, young people, and our communities, both rural and urban. A place where it doesnt matter if youre rich or poor, young or old, male or female. Where your last name and zip code arent nearly as important as your ability to dream and willingness to reach for it. A place where, if life got in the way of those dreams, you can find a second start. And if youve made mistakes, you can find a second chance. Because opportunity means everyone has a chance to succeed. It doesnt mean government picking winners and losers, or waiting for government to fix every problem. It means, when we face challenges, we do what iowans have always done, roll up our sleeves and get to work. While there are many issues to discuss today, i want to pause for a moment and talk about something that has captured the attention of the entire nation. Throughout history, Sexual Harassment has been a stain on our culture, a destructive force, in politics, media and entertainment, in workplaces large and small, in all facets of life. And it must stop. [applause] i commend the number of women who have found the courage to speak out. As a woman, a mother of three girls, a grandmother, wife, sister, and daughter, i understand were at an unprecedented moment in time. I also understand that this is not a partisan issue. It cant be fixed by legislation or rulemaking alone. You cannot legislate kindness or respect or morality. They must be taught. And that means the solution starts with every individual, man or woman. Its about showing respect to others. Its about character and decency. And its about changing the culture once and for all. All of us in Public Office must ensure not only a safe workplace but serve as a model for the public and private sector. [applause] what we do matters. We cant change behavior everywhere, but we have an obligation to lead and, as long as i am governor, were going to. [applause] iowans are good people. Theyre humble people. And no matter our differences on policy and politics, we must always strive to reflect the goodness of those we represent. It is the people of iowa who make this job what it is, and i love waking up every day with the opportunity to make a difference. And while i love our capital city and everything it offers, i believe the heart, soul, and spirit of iowa will always remain in our small towns and Rural Communities. From decorah to manning, lemars to mt. Pleasant and everywhere in between, we are defined as iowans who dream big in these small places. Like many of you, i grew up in one of those small towns and when i go home, i hear the disappointment and i share the frustration when another store closes. I appreciate the hard work taking place by Community Leaders to keep our main streets alive and vibrant. Our downtowns are the backdrop for memories and the foundation for future success stories. Their buildings, businesses and people have character, and they are the hubs for economic growth. Our work ethic is our currency and people all over iowa are ready to invest this valuable resource in their communities. So today im announcing a new initiative that focuses on rural iowa, which i have asked Lieutenant Governor gregg to lead. We will bring together leaders from across iowa with different backgrounds to be part of this effort. Iowans who have lived in Rural Communities all of their lives, those who recently moved there, young professionals, successful business owners, and those just starting out. This new initiative will promote investment and connect rural iowa by expanding broadband capabilities in every corner of our state. Our goal, to keep and bring home iowas sons and daughters and grow the next generation of Community Leaders. [applause] last month, Congress Passed historic tax reform, legislation that gives significant tax cuts to workingclass iowans, and gives even greater relief for families who are raising children. Across the board, in virtually every income bracket, iowans will see relief. For that i want to thank congress and the president. Because every day, i meet iowans who tell me that, no matter how hard they work, theyre still treading water and struggling to make ends meet. But heres the thing, because of an outdated provision in iowas tax code, iowans will see a tax increase if we dont pass tax reform at the state level. Iowa is one of only three states that allow taxpayers to deduct their federal taxes. While that might sound like a good thing, right now its not. It creates complexity, and worse it means that when your federal taxes go down, your iowa taxes go up. And it often punishes those who we want to help the most. With federal deductibility in government cuts taxes for workingclass families, iowa raises taxes on those same families. When the federal government cuts taxes for farmers and Small Businesses, iowa raises taxes on farmers and Small Businesses. Thats not just a hypothetical. Its what will happen if we dont act. Therefore, i will be proposing a tax reform package that significantly reduces rates, modernizes our tax code, eliminates federal deductibility, and provides real tax relief for middle class families, farmers, and Small Businesses. [applause] this is an opportunity to free us from decisions made in washington, d. C. And simplify our tax code. And more important, iowans will keep more of their hardearned money. [applause] like many of you, kevin and i lived on a tight budget while raising our girls. We had to focus on priorities, making tough decisions on what we could and couldnt afford. Its no secret while working through tough times with her state budget, so we have to focus on what we can afford. While i want to reduce our uncompetitive Corporate Taxes, this is not the year. In the meantime, i will be creating a Bipartisan Task force to analyze every tax credit and come back with recommendations prior to the next legislative session. That will provide the opportunity to address our Corporate Tax rate with a better understanding of the larger picture. It may take a multiyear effort, but we are going to completely reform our tax code. Were going to make it more, were going to make i will more competitive, and were going to continue to be a place where businesses, big and small, want to grow and expand in iowa. [applause] nearly everything that is important to our future, schools, jobs, energy, growth, depends on the health of our people. If iowans arent healthy, they cant learn, they cant work, they cant take care of their families, and they cant succeed. Before the Affordable Care act, iowa had an individual Insurance Market with relatively low cost and high participation. Today, our Healthcare Market is collapsing. Its unaffordable. Its unsustainable. And its unacceptable. I continue to call on congress to repeal and replace the Affordable Care act. We cant wait for congress to fix it. This session, we must Work Together to pass legislation that gives iowa farmers, Small Business owners and their workers access to affordable insurance. [applause] to meet the needs of our most vulnerable iowans, to ensure we have affordable healthcare coverage for working families, to provide Compassionate Mental Health care, and to fight the plague of opioid addiction, we must address these complex issues in a coordinated and strategic approach that builds on the progress weve made together. Almost two years ago, we modernized our medicaid system to an individualized, patientcentered approach that was already in place in 39 other states. It was a change that needed to be made. Under the old system, costs soared, fraud occurred, it was unsustainable, and we werent focused on patient outcomes. I still believe managed care is the right decision for iowa, but it has become very clear that mistakes were made in how it was done. [applause] shortly after being sworn is as governor, i took deliberate action to make a change. I hired a new director for the department of human services, who has the passion, and most importantly the compassion to make this work. And he has hired a new medicaid director with the experience to get things turned around. With this new team in place, we are working with our caregivers to resolve issues in a timely manner and ensure ontime payments. We are continuing to work with our managed careorganizations to ensure iowans are getting the best possible outcomes. And we are reaching patients in new and innovative ways to individualize their care. This is something i think about and work on every day, because it is so important to so many iowans. And my promise to you is we will make this right. [applause] we must also continue to provide Compassionate Mental Health care. In 2013, we redesigned iowas Mental Health system with bipartisan input and support. We moved from a countybycounty system to a regional network, ensuring the same Core Services for all iowans, regardless of where they live. 150,000 more iowans have Mental HealthCoverage Today and have access to more local and modern services. Weve invested 2 billion in Mental Health services. And in 2016 we invested 4 million in a new psychiatric medical Residency Program to recruit and retain more psychiatrists. But we must do more, and i know we can. Thats why i look forward to partnering with Des Moines University and the National Alliance on Mental Illness on their exciting new initiative, where every new doctor will receive the training and skills to identify and treat a patient with a Mental Health challenge. As a partner ive included in my budget money for this innovative pilot program. A first of its kind, and since the moyne university trains more primary care physician than any of the medical school in the country, its a significant step forward. We have students and faculty from Des Moines University with us today. Please join in me thanking them for the leadership they have shown in Mental Health education and awareness. [applause] to improve our Mental Health system, we cant just focus on the sheer number of beds; we must identify the gaps in our system. In many cases, iowans suffering from Mental Illness dont need hospitalization. But they also cant get the care they need at home. They need a safe place to stay that offers professional services and a watchful eye. We need to establish residential Access Centers that will provide shortterm care for those in crisis. A place with the resources necessary to get these iowans stabilized and back home to their families. To help make that happen, i am asking the legislature to remove the cap on subacute beds. And i am asking the Mental Health regions and our stakeholders to work with me to create a longterm and sustainable funding structure to establish these muchneeded crisis Access Centers. [applause] creating a Mental Health system is complex and it wont be solved overnight. But no parent, child, friend or neighbor should suffer in silence when it comes to Mental Health. Addiction can be just as anguishing for families and many of you know some who suffered from the wave of hair when an opiate addiction that is making its way to iowa. This is an issue that is very personal to me. To the thousands of iowans impacted by addiction, ive been there; i understand your struggles. My family understands your struggles. I know that life can be so much better. Like it is for caleb, a recovering opioid addict from dubuque. His life was saved after an overdose that nearly left him dead. Through the help of medicatedassisted treatment and a recovery program, hes turned his life around. Calebs kept a job for over a year, received promotions and raises. And hes happier than hes ever been. While courageously sharing his story at our recent opioid summit, caleb said, even though im a high school dropout, i feel like im very wealthy. Caleb, were all richer for hearing your story. In the past decade, opioidrelated deaths have more than doubled, and will continue to rise unless we take action to reverse this heartwrenching trend. My plan to address this epidemic includes, increase use of the prescription monitoring program, supporting enhanced intervention for iowans addicted to opioids, and expanding medicated assisted treatment, the very program that helped caleb. And today i am calling on the legislature to pass legislation to reduce the number of opioids prescribed in iowa. [applause] this is a big step in the right direction. It will change lives and provide opportunities for a brighter future. The foundation for a Bright Future starts early. So when we talk about unleashing opportunity and prioritizing our budget, nothing is more important to me than investing in our children. In todays changing economy, whether our kids are bound for a fouryear college, a community college, trade school, military service or headed into the workforce, we must prepare them for a productive and successful life. Thats why we have invested over 37 million in stem through Public Private partnerships. One School District and community that has embraced Stem Education from the very beginning as Harlem CommunitySchool District. Please stand and let us recognize you and thank them for joining us. [applause] [applause] since taking office several years ago we have added 735 million in new funding to k12 education and at 3. 3 billion funding is at an alltime high. In fact, a recent study by the center of budget and policy priorities found that over the last ten years only three states increased Education Funding at a higher rate than iowa. Education is a priority and we will continue to back that up with real money and that is why in my budget i am proposing 54 million in new money for our schools. We also maintain our commitment to School Choice which offers families the option to teach their values, beliefs and viewpoints to their children. That is why i tax plan will expand 529 plans include k12 education. [applause] but we also cant fall into the trap of measuring the quality of our Education System by the sheer number of dollars we put in it. We are not focused on preparing our young people for the future then we are failing. The economy is changing, the demand of the workforce is changing and our Education System must change with it. On that front, i am proud to say that iowa is ahead of the game. Last fall micro, the host of dirty jobs visited central campus in des moines. He called it Pre Apprenticeship Program a model for high school all over our country. He talked about how welding, carpentry, nursing, drywall, automotive how all the meat of trades were represented. We are fortunate to have students with us from central campus. When talking about your school, mike said, you have a Peer Partnership program that rivals the best he has ever seen, that you, the kids in this program, are given real world experiences so real that your High School Classes are translating into college credit. We can and should emulate your program around our state and the initiative to help us do that is future ready iowa. Future ready iowa will create an environment where opportunity is unleashed. Its a place where highpaying jobs are seamlessly linked with a motivated and highly skilled workforce. In iowa the careers of tomorrow are being created today with starting salaries of 40 or 50000 a year, just waiting to be filled. In fact, right now there are more than 50000 jobs openings on the Iowa Workforce development website. Many in high demand, highpaying fields and at the same time we all have friends, relatives, neighbors, hardworking but lacking the skills or selfconfidence that they need to reach out and sees one of those careers. But this morning i would like to introduce to you too when i went, amy, took her dreams and earned the career she always wanted. Amys College Story began more than 20 years ago when she was a new mother. At the age of 19 she put her dreams on hold so that she could put her child first. Later she attended Trinity College aspect. We break away from this and you can find it for a Live Conference on empowering women hearing it from Sarah Sanders and others and later ivanka trump who is a Senior Advisor to the president. Thank you for being here. I am mostly excited because i am not answering any of the questions during the session back and