We use that as the benchmark. This is where the picture comes morphed sharply into focus. We will now have 90 voters of color, and those states are will overwhelming in the south and southwest. Texas is the new battleground state. One of the most important races in this country will be wendy daviss run for governor will be which is in texas. With where barack obama only lost by six , the board race will be the governor there. Elected 270 to be president. These 24 states have 303 congressional seats. 318 is the magic number for majority in the house. The states have the power to elect the next president and secure control of the congress. The cottonhat once and let us and now the president , senators, governors. You can watch the entire discussion at 10 00 a. M. Tomorrow eastern time, why after washington journal right after washington journal. Truthfully, that every single problem in america would be better if more people could read, write, and comprehend. I just know that. We would be able to compete with the rest of the world. We would not have these children who are committing crimes because their families do not have jobs. They do not have jobs because they do not know how to read, they cannot write, they do not understand. I think every thinking american is coming to that conclusion. We have got to educate our children, and we have to educate their parents. It is at just a whim, necessity, if we are going to compete in this world. First lady barbara bush, live on cspan and cspan three. Also on cspan radio, and c span. Org. Andn new jersey on tuesday, governor Chris Christie deliver the annual state of the state address. He spoke for about 15 minutes 50 minutes. [applause] thank you. Thank you. Thank you very much. Thank you very much. Thank you. Thank you. Thank you. Thank you. Thank you very much. Happy new year. Lieutenant governor. Mr. Speaker, congratulations. Mr. President. Members of the state legislature. Friends and fellow New Jerseyans. The last week has certainly tested this administration. Mistakes were clearly made. And as a result, we let down the people were entrusted to serve. I know our citizens deserve better. Much better. Im the governor. And im ultimately responsible for all that happens on my watch, both good and bad. Without a doubt, we will cooperate with all appropriate inquiries to ensure that this breach of trust does not happen again. But i also want to assure the people of new jersey today that what has occurred does not define us or our state. This administration and this legislature, will not allow the work that needs to be done to improve the peoples lives in new jersey to be delayed for any reason. I am the leader of this state and its people. [applause] and i stand here today proud to be both. [applause] but also those of you who know me know that im always, always determined to do better. So now, i come before you once again, for my fourth time, to report to you on the state of our state. And the good news is that today, the state of our state is good and it is getting better. Remember that four years ago we were in the throes of an economic crisis. Today our Unemployment Rate is 7. 8 , the lowest in five years. [applause] four years ago, we were losing jobs. Today, we have gained 70,000 jobs in 2013 alone. And a teal of 156,000 in the last four year and a total of 156,000 in the last four years. Four years ago, wealth and jobs were leaving the state. Today, personal income for New Jerseyans is at an alltime high and were atracking new companies and that has brought jobs. We now have four straight years of private sector job growth. In fact, in november, the drop in our Unemployment Rate was the largest onemonth drop ever measured and in the last year, new jersey had the second largest drop in its Unemployment Rate in america only behind the state of north carolina. And we could have chosen to go down a path of continued tax increases and fund the states addiction to spending but we didnt. We held the line against any new taxes and held the spending to a level below fiscal year 2008, six years ago. We could have let State Government grow even while the private sector shrank but we didnt. Today, there are 6,000 fewer state employees than when i took office four years ago. But, there are more than 155,000 new private sector employees. Weve improved our business climate. And today by every measure, Business Confidence in new jersey is up. In fact, one National Magazine ranked new jersey among the top five states with the most improved business climates in america. Its no accident how we got to this place today no accident at all. We chose, we chose the way. In this new year and the next four years, we need to build on this momentum by creating a new attitude. We need to create an attitude of choice. Attitude of choice is not about choosing everything. Its not about saying yes to everyone. It is about us setting our priorities and choosing to invest in new jersey where it matters. And to put in place the reforms and reductions that will make that possible. And the best part of our turnarounds in these last four years is because we have chosen to work together. Take a moment. These are our achievements. Four balanced budgets, passed with bipartisan support. Pension reform. Passed with bipartisan support. Teacher tenure reform, passed with bipartisan support. A cap on property taxes, passed with bipartisan support. We acted and we acted together. Even though the Competition Among states is fierce, the record on this is clear. No state in this country has shown more bipartisan cooperation and governance over the last four years than new jersey and our people are proud of it. Lets resolve today that we will continue to put those people who are proud of us now, that well put them first. That well choose to do our jobs. One of the things that we know historically has driven people out of new jersey is high property taxes. In 2010, together we capped them and the 2 cap has worked. In these past two years has been the low nest two decades. But the job is far from finished. Property taxes are still too high and today i ask for you to join me in enacting a new Property Tax Relief initiative that tackles the root causes that are driving up property taxes in the first place. But first, lets get some context. The 2 cap weve already enacted has worked for a reason. The reason its worked is because weve done it by controlling costs. We accompanied it with reform of an interest arbitration award seasonal that we knew needed fixing. As you know, the interest arbitration cap was not permanent. It is set to expire this april unless we act. So i ask you today, on both sides of the aisle, let us renew the cap on interest arbitration awards that is working and lets make that cap permanent before the deadline in april. [applause] another reason property taxes are so high is that our cities and towns are stuck a series of costly state rules that increase the cost of local government. As the cost of government grows, taxpayers, property taxpayers, are paying the price. Now, weve worked with the senate to try to pass real consolidation and Civil Service, shared services reform. We havent yet got it done in the assembly. We need to have an effort that includes everyone responsible for property taxes. The senate, the assembly. The administration and he call governments to provide them with the authority to run their governments like a business. To consolidate, to share services, to cut duplication and ultimately to reduce property taxes. Dont think its possible . Lets look at what happened last year in princeton. Now princeton borough, Princeton Township talked about this for a long time. They consolidated into a single government. No two tax departments, no two Police Departments answering the phone. The savings in one year, 3 million. Thats not a thats on a budget of 64 million. Thats a 4. 7 savings. The citizens of princeton got this in return. More services, despite a smaller budget and imagine this. A reduction in their municipal taxes. Now thats not just an opinion. The local unit alignment reorganization and consolidation commission, and if you think thats easy to say, let me try one more time no, im not going to do it. They said the Civil Service seniority rules were at the top of the list of barriers to shared services. So lets help our towns clear away arcane rules that stand between them and lower property taxes. Now when it comes to driving costs, lets not forget, i cant imagine you could, the expensive practice of six figure sick leave payouts for government employees. Sick time should be used when youre sick and if you are lucky enough to be healthy, that should be your reward. Sick leave has been abused too many times and the cost is real. Almost a billion dollars in liability. Facing new jersey towns. 880 million to be exact as we stand here today. And it will only get higher if the system is not fixed. These reforms are commonsense. So lets lift this billion dollar albatross off the necks of new jerseys towns. Lets, together, in a bipartisan way, enact the zero means zero plan and stop these payouts in their tracks and the harm it does to our taxpayers. [applause] now our Pension System is burdened by some who collect disability retirement because they claim they are totally and permanently disabled, but then they turn around and go back and work full time. This is wrong. And it hurts our system and the people who really deserve the payouts. So first, weve established by executive order a special unit to prosecute pension fraud but we need to go further. So lets go further. We need to solidify our Pension System and reduce costs by reforming our disability retirement system to thend fraud and abuse. Let me be clear, were not talking about taking away benefits that people deserve but if folks are going to abuse the system, it hurts every person who needs the system. When theyre really, really injured permanently. Not only will this help that Pension System but it will help to reduce costs and reduce property taxes. Now heres one of the open secrets in local government. Since the enact. Of the 2 property tax cap. Some towns get around the cap by enacting user fees to fund Traditional Services that they use to put in their budget. 10 lets end this practice. All of you in this room who voted for the cap, did not want the cap to be gone around. So lets not make peoples property taxes even more expensive by not enforcing the cap and ending these user fees. [applause] now ill have more to say about new jerseys taxes when i present my budget to you next month. Thats for a reason. Ive always believed we have to consider changes to our tax system in the context of our overall budget picture. So well be back to you in february and present some choices regarding taxes. But let me tell you one choice we will not make because it is one answer that will not help grow jobs in our state. And thats raising taxes. You see, if the evidence is clear that increasing taxes hurts job growth, its equally clear, equally clear that we need to stand up and not allow the tax burden on the citizens of new jersey to get larger. We need to make it smaller. Now if its clear that property tax and other tax increases hurt our growth, it is equally clear that improving our educational system is key to improving our growth. Together again weve made great progress in these last few years. A record amount of school aid, long overdue reform of our system of teacher tenure. Increase in the number of Charter Schools and an urban hope act bringing renaissance schedules to some of our most challenged cities. Some of the results were seen already are really promising. Last year, new jerseys High School Graduation rate increased by a full percentage point to 87. 5 . Student achievement is strong in many of our Public Schools and new jersey students are among the countrys greatest achievers. Just a few years ago, a graduate on my own high school, livingston high school, won the noble prize in chemistry. The nobel prize in chemistry. Were making a Huge Investment in public education. New jersey spent over 20 billion a year all told. Our per pupil expenditure is the highest in the nation at over 17,000 per year. Now in some cases, i believe too many, our children are not receiving the education they deserve. Though our Public Schools are strong, too many are still failing. While the vast majority of teachers are performing well, some are underperforming and they should be removed from our childrens classrooms. The need to be better is particularly acute in new jersey cities. Our urban schools demand our attention and they have mine. Where bold action has been necessary we have taken bold action. In our largest scoo School System in newark, we brought new resources not only in the farm of state aid but in collaboration with parents, teachers and Community Leaders on the ground in newark. One result, we negotiated historic contract with the Teachers Union and delivered real her rate pay alongside teacher volvet increased teacher involvement in the process. We want to listen to the needs of urban communities. Its why weve empowered those in newark and camden to make choices that work best for their kids, their parents, and their schools. In newark, that superintendent is cami anderson. Cami has moved to pay the best teachers more. To stop actions that are failing kids. To empower 50 new principals to create cooperation between the Public Schools and the public Charter Schools. And to reorganize the School System structure, to put the focus on kids, their schools and their parents first. What are we seeing . Some good early developments. Early childhood enrollment is increased by more than 1,000 students. In her tenure the Graduation Rates have increased by 10 . Newark is leading the conversation and making sure every kid, those who are behind, those who are ahead and those who have special Education Needs are lifted up. Under cami anderson, every kid means every kid. Now her efforts havent always been met without skepticism, but she is a true partner with newark and cares about that city and its Public Schools. Cami is here with us today. Cami, id like you to stand up so we can thank you for your commitment to the kids in our largest city. [applause] how bad has it been in camden . How about this. Last year, only three students graduated college ready. I want you to listen to that again. In the entire public School System in cam ten, last year in camden, last year, only three students graduated college ready. That is obscene. And unacceptable. And a breaching of the faith between those families and every level of government responsible for their education. So what are we doing . Were bringing that same energy that cami is bringing to newark to the camden Public Schools. Whats he done already . He turned around a perennially lowperforming Charter School which is showing some of the largest economic gains in the state. Hes launched a new Safe Corridors Program with mayor dana red which created safe walking routes to and from school for camdens children. And of the 345 students who dropped out last year, hes led the effort to go door to door and hes reenrolled 50 of those dropouts back in school. Im proud of what youve done already, im pited about what the future of camden schools will bring under your leadership and the leadership of local official there is and id like you to stand up to let us thank you for your effort and dedication. [applause] now both cami and paman have my confidence and support than administrations confidence and support to continue aggressive reforms needed for newark and camden. Cami and pambings man are emblems of my commitment to ensuring the opportunity for an excellent education to every child in new jersey, regardless of their zip code. Despite the improvements in newark and camden, we need to take bigger and broader steps to address our k to 12 education approach, to address the new competitive world we live in. Lets face it. If my children are living under the same School Calendar that i lived under, by definition that School Calendar is antiquated. Educationally and culturally for the world we live in. Life in 2014 is much different than life 100 years ago. It demands something more for our students. It is time to lengthen both the school day and the school year in new jersey. [applause] this is not just my idea. I look forward to working in a bipartisan way to get this done. If student achievement is lagging at the exact moment we need improvement more than ever in order to et compete in a world economy, we should take these stops steps, every possible step, one key step is to lengthen the school day and school year. These children need more time in school. Some of them to catch up. Some of them to excel more. So working with commissioner serf, ill present to you a proposal to increase the lept of the school tai and school year in new jersey. I believe that this is a key step to improve Student Outcomes and boost our competitiveness. We shouldnt wait. We should do it now. Because every day we waste, our children will never, ever get back. As parents, as grandparentings, as aunts and uncles, we should not stand for it. And under this administration, we wont. Now, many of our new initiatives recognize a core feature of modern american life, that the quality of education and the quality of life in our communities are inextricably intertwined. Thats why this year we need to be more aggressive and bolder in fixing our failing schools and delivering a choice to those for whom today the only option is a bad option. A failing school. Some more obligation its a moral obligation, everybody. We must give every new jersey child a chance to graduate from high school, to be ready for college if they so choose and to prepare for a career. If we fail to meet this obligation we compromise the life of that child. And we hurt the quality of life in our communities, all across new jersey. So failure is not an option for us. If education, though, is one key to the quality of life in new jersey, our approach to save streets and stronger communities is another. Every new jerseyan should be concerned when Violent Crimes occur right before our eyes. Last month, a young lawyer went to open the door of his vehicle for his wife after an evening of prechristmas shopping. He was set upon by thugs. Who wanted to carjack his suv. And in front of his wife, he was shot in the head and left for dead on the deck of a mall parking garage. Now, Outstanding Police work led to four arrests and the suspects are now charged with murder. All four had prior criminal records. All four, fortunately, are now in jail. How can we tolerate such violence in our midst . The answer is obvious, we cannot. So we must take a new approach to fighting crime in new jersey and prevent tragedies like this from happening. We must do everything we can to swiftly jail those violent criminals who bring additional murder and disruption to innocent victims across our state. We have the tools to do this, some of which weve begun and some of which weve not. I believe 2014 must be the year we finish the job. So what have we not finished . Almost two years ago, i announced a proposed constitutional amendment to modify the right to bail in new jersey. The concept is simple. New Jersey Courts should have the right to keep dangerous criminals off the streets and in jail until trial. Why is this important . A study by the federal governments Justice Department found that one third of the defendants released before trial ended up being charged with some type of pretrial misconduct. One sixth for arrested for new offense and half of those were felonies while they were out on bail. The federal government allowed the violent criminal who is a who is adjudged by the court to be a danger to the community, to be held without bail. New jersey law does not. This must change. How can we justify any longer exposing our citizens to the risk of Violent Crime at the hands of those already in custody who a Court Determines are predisposed to committed again predisposed to commit it again. Let us mirror the federal law. Let is pass bail reform in 2014. [applause] weve had some successes in the last few years, we made progress in reducing crime in new jersey. Over the past decade, Violent Crime is down 16 both across new jersey and in our 15 largest urban centers. And the states prison population is down 20 since 1999. But we can do better and we must. Those 15 urban centers still account for more than half of all the Violent Crime in new jersey despite representing only 18 of the states population. Now for too long, camden has been one of the most dangerous cities in new jersey and in america. The ability to put police on the street was constrained by tight budgets, low morale and an absentee rate that sometimes reached 30 in a day. Under an agreement that this administration signed with the city of camden and the county of camden, we have reen regionalized the police force. A police force that was slightly more than 200. Its now being beefed up to 400 county Police Officers patroling the city of camden in the metro division. Last year the homicide rate was down and the crime rate was down by over 20 . But we the the bat until camden is far but we know the battle in camden is far from one. Under the mayor, the police chief, and jose cordero who help red deuce crime in one area particularly, camden is using a new approach. Camden is moving in the right direction. And i agree with senator sweeney that we should have incentives for other communities to adopt the shared Services Agreements and regionalization agreements that are making more cops on the street possible. More cops on the street means safer communities. To make this happen, we will work with you to reintroduce a shared services and consolidation reform measure in this session of the legislature. I hope we get it done. [applause] we must also reach out a hand of compassion and commonsense to those who engage in nonViolent Crime. We must do a better job of reclaiming their lives and putting them back on the road to success and engagement with our society. Every human life is precious and no life, no life is disposable. Thats why i proposed last year to change our approach to nonviolent drug offenders and to mandate treatment, not imprisonment. Together, together we made this possible. The drug Corps Program has been a great success. Thanks in part to your support in funding both the court and the treatment. And i thank you for passage this past year of the overdose protection act. We should not be pross cuing those Good Samaritans and Health Professionals trying to help in a lifethreatening overdose situation. You know new jerseys approach to reclaiming lives . Its working. Right in front of our eyes. Recidivism has dropped by 11 , one of the steepest drops in america and new jersey is rightly recognized by National Experts as a lead for the strategies among states in reducing the incidence of recidivism. One part of this for me, its personal. In this room today is a man who was a drug addict at 16 years old. His life was at risk. He was imprisoned. But treatment saved him. He was rehabilitated in our hometown of mendan. He then went on to graduate from high school, to get a college degree, and ultimately got a law degree and passed the bar exam. I had the privilege of hiring him as a summer intern at the u. S. Attorneys office many years ago and working with craig hanlon. Hes with us now in this chamber. If you need proof that reclaiming a life is possible, that every life is precious and has value, and that no matter what condition you find that life in, that life is salvageable if we reach out and give them the tools they need to help themselves, that proof is in this chamber today. A practicing lawyer who at 16 years old was in jail as a drug addict. Craig, welcome and thank you for making new jersey a better place. Because of the years i have because of the years i have known craig, i know personally the passion and strength that comes from the human desire to make your life better, and i believe we can do more to help give people a second chance. Thats why today im proposing an initiative to expand integrated treatment and Employment Services for individuals receiving Drug Treatment Services. By providing grant funds in the amount of 500,000 to be managed in part for theship with the nicholson foundation, well place individuals in jobs and help improve their retention. We will work directly with treatment provide source they integrate Employment Services with Drug Treatment Services for drug court participants. Research shows that employment during Substance Abuse training treatment, rather, ensures continued participation in that treatment and gives them sustainable, longterm employment. So now with this partnership well help empower individuals who want and deserve the opportunity to live a life like craigs. A life redeemed and well lived. A year ago this afternoon, our state was in recovery from a challenge not of our own making. Superstorm sandy devastated new jersey in the fall of 2012, flooding our homes, turning off our power, and destroying our roads. Despite the magnitude and the devastation of the storm, the one thing weve learned in the last year plus, is that sandy could not break our states spirit. This past summer, most businesses at the shore opened on time. Our boardwalks were rebuilt. Many of the crowds came back. And schools that had been damaged were reopened. Today about nine months after the first phase of Disaster Recovery funds started flowing to new jersey, nearly 900 million, more than 2 3 of the funds for housing recovery programs are out the door or in the pipeline. From the very beginning, the priority for this administration was putting those with the greatest needs and lowest Financial Resources at the front of the line. Of the nearly half the housing money thats been allocate so far, 72. 9 of that money has been awarded to low and middle income families. And we are proud of that. The bottom line is this. Were a long way from the finish line. But we are also a long way from where we were one year ago. Challenges remain, and i will not rest until every person hurt by sandy has their life back to normal. That is my mission. I want to thank the legislature and all New Jerseyans for the cooperative, bipartisan, and resilient spirit that you demonstrated in coming back from sandy. Let that spirit of sandy be a powerful lesson to all of us that when times are most difficult, cooperation and progress are possible. Indeed, id tell you, theyre necessary. Lastly, let me share with you one more hard truth that makes this new attitude of truth ive spoken about today necessary for new jerseys future. Weve discussed so many exciting opportunities for investment in our state both today and in the last number of months k to 12 education, higher education, crime prevention, drug rehabilitation and job training coming together, increased access to health care, infrastructure investment, lower taxes, job growth theyre all exciting and all of which, done responsibly, could make new jersey an even greater place. But heres the simple truth that everybody in this government knows. We cannot afford to do it. Why . Large part because of our pension and Debt Service Costs. For fiscal year 2015, the increase in pension and Debt Service Costs could amount, the increase, could amount to as much as nearly 1 billion. Thats nearly 1 billion we cant spend on education, that we cant invest in infrastructure improvement. That we cant use to put cops on the streets, that we wont have available to us to increase access to health care. For those who would advocate higher taxes, remember that the amount raised by that tax would not even cover the increase in our scheduled pension payment for next year. And would undoubtedly make us less competitive in this fiercely Competitive National job market. That situation. Exciting choices to be made but the resources not available to do them. These are the consequences of failing to engage in an attitude of choice. If we continue in an era where we believe we can choose everything, let me suggest that to the you were really choosing nothing. We need to have the conversation now about further changes to our Pension System and about adding further to our states already burdened debt load. The time to avoid this conversation and avoid these choices is nearly over, everybody. If we do not choose to reduce our soaring pension costs and Debt Service Costs, we will miss the opportunity to improve the lives of every new jersey citizen, not just a select few. Im ready to engage in those conversations and help, with you, to truly create in this state an honest attitude of choice. The result will be a better, smarter, stronger new jersey. The results from our refusal to make the tough choice, our refusal to choose, will be a weaker new jersey. Our refusal to make the tough choice, our refusal to choose will be a weaker new jersey. And make no mistake about it. If we choose everything, no matter what rhetoric either side of the aisle uses, the only way to continue to pay for this is to burden our middle class with even higher taxes in this state. That is to me, and i believe to all of you, an unacceptable alternative and it is an abandonment of our duty. Centuries ago a philosopher wrote choice, not chance, determines your destiny. And this remains true for new jersey today. Our destiny is not set. It is the product of the choices we make. Our future is not set. It too is the product of the choices we make from this day forward. So let us choose wisely. Were sent here to act. Lets not fail to act. Lets create an attitude of choice. Let us choose to invest in better schools and not in the status quo in which we leave some children behind and put the rest at risk of being swallowed up by a rising tide of mediocrity and failure. Lets choose the path of safer streets. Lets not leave our families vulnerable to the heartless carjackers who would destroy our quality of life. Let us celebrate every life by creating an opportunity for every citizen through an excellent education, a productive job, and a safe and thriving community. In this hour of choice, let us choose a better new jersey. [applause]