[ applause ] thank you. Thank you. Thank you. Madam Lieutenant Governor, mr. Speaker, madam speaker let me start over again here. Madam Lieutenant Governor, mr. President , madam speaker, legacy of leaders, legislators, justices and judges, elected officials and distinguished guests, family, friends and fellow iowans, im honored to once again address a joint session of the General Assembly delivering the condition of the state for the final time as your governor. For 22 years, i have addressed this body as governor and today i want to especially welcome the 22 new legislators who are with us from both sides of the aisle, who were elected in november. Your constituents sent you to work hard, to work for them and to help make iowa a better place. I hope youre filled with the same sense of excitement and eagerness i had when i first served in the legislator in 1973. Lieutenant Governor Reynolds and i look forward to working with each of you and listening to your ideas on how to make our state an even better place for families to live, work and grow. In that spirit, i am today extending an invitation to each legislator to meet with me personally during this legislative session. We also gather again with shared sadness. Returning to do our work without our friend, senator joe sang from davenport. Joe was a catholic and a true statesman. We enjoyed his positive personality and working with him. [ applause ] as i look back at my years of Public Service, im thankful to those iowans who stepped forward to serve their fellow citizens. In particular please join me in applauding those iowans who have helped make our state and nation safer by serving in the military, Law Enforcement and First Responders. [ applause ] since taking office in 2011, weve made the to strengthen our economy and improve the quality of life across our state. We made tough decisions to give iowans a smaller and smarter government. We stayed the course with an unwaiving commitment to create jobs and reduce the size of government and give students a competitive education. We provided significant tax relief for the past five years, especially for commercial property taxpayers and last month the Lieutenant Governor and leaders of the Economic Development authority and the department of transportation unveiled iowas most comprehensive energy plan. The plan was developed with collaboration from the private sector, the public sector, educators, nonprofits and utili utilities. Iowa is already a leader in low cost and renewable energy. The comprehensive new energy plan will help build on our past energy successes and confirms our commitment to maintain iowas Energy Leadership for the future. [ applause ] im proud weve made government smaller and smarter. Our unemployment in the state has dropped from 6. 2 to 3. 8 . The state has helped attract 13. 5 billion in private sector Capitol Investments which have translated into jobs across iowa and more iowans have been employed these past few years than any other period in our states history. Weve also made the tough decisions to ensure government lives within its means, like iowa families must do. Weve accomplished this with the relentless focus on fiscal discipline, demanding budget predictability, fully restoring our iowa reserve accounts and reducing the states debt liability. Together, weve made progress towards our goal of restoring iowa schools to best in the nation through a series of land mark reforms and innovative policies, to improve iowas education standing, we needed to make sure more is done to help our hard working teachers make sure they have the tools necessary to succeed given Higher Expectations for all students so we created the new teacher leadership system that better utilizes the expertise of top teachers to improve education, instruction and foster collaboration. Im proud to say that ever Public School in iowa today is participating in the teacher leadership system. To ensure that our children are prepared for the 21st century, we advanced the National RecognizedStem Initiative that gives students the confidence and skills for rewarding careers. The initiative is led by the lieutenant Governor Reynolds and the ceo dr. Chris nelson and has seen outstanding growth and success. Sustaining these measures over time is critical to get the right results for our students and our state. The ability of iowans to overcome challenges bolsters my optimism about our states future. When faced with challenges, iowans consistently seek opportunities. Some of the challenges that weve overcome like the farm crisis of the 1980s, tore at the very fabric of our communities. In the 1980s bloomfield, iowa a community in southeast iowa, struggled like many other communities across the state. An uninsured bank closed in 1983 and caused great loss for area families and businesses and area farmers were straddled with debt and limited Market Opportunities for their crops. Through a persistent focus on diversification and a spirit to rebuild the community, bloomfield has new manufacturers that are growing alongside innovative startups and to continue their effort to stay on the cutting Edge Community leaders are instituting aggressive strategies to become iowas first Energy Independent community by the year 2030. I visited bloomfield last year and was impressed with their main street revitalization and hardware store. Woodbine, iowa is another community that took the future into its own hand. They showed how an approach to Community Sustainability can redefine a struggling small rural community. Woodbine had a bank close in the 1980s, but the community turned to diversification. The Lieutenant Governor and i visited the community and were impress in hed with the main st program. In water loo, iowa embraced the challenge to succeed in modern time times. John deer continues to be a leading manufacturer and innova innovator. In the balcony today are leaders from these cities. Please join me on congratulating them on their accomplishments and supporting their future success. Thank you. Iowas industries are increasingly high tech, including advanced manufacturing. Iowa has over 6,100 manufacturers that contribute over 31 billion to iowas economy and employ over 200,000 iowans. Over the next year, the iowa Economic Development authority will work with iowa manufacturers to advance a year of manufacturing to help grow this important part of iowas economy. We should also be proud that iowa remains an agriculture powerhouse that feeds and fuels the world. Thanks to the innovation of iowas farmers and agriculture producers we set a record for biodiesel production by adding an additional 55 million gallons and we lead the nation for a state generating electricity from wind. [ applause ] we love wind. Over the last 30 years, weve significantly added to our agriculture commodities. Weve diversified the economy by supporting growth in wind energy, data centers, fertilizer plants, advanced manufacturing, insurance and financial services. These Newer Industries employ hundreds of thousands of iowans in rewarding careers. While im pleased with this progress and optimistic about our future, i believe theres more work to be done. We must seize the opportunity that is before us. This new General Assembly brings new dynamics, new expectations and new opportunities to deliver positive results for iowans. [ applause ] our state is in an admirable position. Many states are strapped with crushing debt, poor Credit Ratings and a bleak outlook, but iowa is an example for what tough work can do for growing businesses and nurturing families. While the december earning estimate is lower than previous projections, the estimate shows a modest increase in state revenues. Although we faced a head wind out of washington, d. C. That is stifling our agricultural of economy, we still have positive revenue growth, but we must proceed with caution and not repeat the mistakes of the past. With that prudence in mind, i present my proposed adjustments to the current fiscal year budget to you today. These adjustments are required by law. My proposal does not include across the board cuts. It does not reduce funding for k12 education. Does not reduce property tax credits and does not include furloughs to state employees. The budget reductions im recommending for this fiscal year are difficult, but they maintain our funding mutual they do maintain funding for mutual priorities. Im committed to working with legislative leaders and all of you to implement these adjustments for the coming year i am presenting a complete twoyear budget that is balanced each year and meets our fiveyear projections for a sustainable future. This budget is based on the principals laid out by the iowa taxpayers association. It prioritizes education, health care, Economic Development and Public Safety. It redirects Family Planning money to organizations that focus on providing health care for women and eliminates taxpayer funding for organizations that perform abortions. [ applause ] on my first to trip to china in 1984, i learned the chinese word for danger and opportunity is one in the same. Today america and iowa exists in a challenging world. We must seize the opportunity to make it a better place. In 2010 the Lieutenant Governor and i promised to reduce the size and scope of government. Im proud to report we do have a smaller, smarter government. With a steady focus on improving services for our citizens in a more timely and efficient manner. While the size of government is smaller, the benefits for Public Employees at the state and local level have increased. Unfortunately the costs of these benefits have grown dramatically. Because of our collective bargaining system that has led to over 500 health care plans, many are inefficient and way too costly for Public Employees and iowa taxpayers. Under our present system, just a few Adverse Health outcomes can destroy the budget of a city, county or school district. By replacing this system with one comprehensive statewide contract, we can spread the risk and dramatically reduce the costs using a uniform Health Care Benefit system similar to the program for retirement we can provide Quality Health care at a significantly lower cost and give local governments more flexibility to provide better wages and meet other needs. The statewide Health Care Contract also needs to reward employees who take ownership of their own health by conducting Health Risk Assessments and taking actions to improve their own health. We have made a commitment to examine each and every dollar of revenue and expenditure in order to maximize efficiency and respect our hard working taxpayers. We are committed to a smaller and smarter government that seeks innovative ways to provide services, rather than blind adherence to the way things have always been done. Im asking this General Assembly to take a comprehensive review of all of iowas state boards and commissions to address unnecessary barriers that prevent competition and raise costs. I encourage you to ask the tough questions that challenge the status quo. [ applause ] in iowa, 90 of our General Fund Budget is spent on three items. K12 education, medicaid and employee wages and benefits. The state has significantly increased funding for education since 2011 amounting to over 654 million additional dollars. Education and job training are the foundation for our future economic growth. Growing our states Talent Pipeline needs to be a top priority, even with modest revenue growth. My recommendations include an increase of 78. 8 million for k12 education for fiscal year 2018 and an additional 63. 5 million for fiscal year 2019, which equates to roughly 2 growth each year. So this year, lets show iowans we can make these decisions early and meet the legal requirements of setting supplemental state aid for fiscal years 2018 and 19 in the first 30 days. [ applause ] the second big driver in the states budget is health and Human Services spending. Together weve transformed our Mental Health system to a Community Based model. Weve obtained a federal waver for our iowa health and wellness plan which has reduced charity care for iowa hospitals. Like 39 other states we modernized our Medicaid Program and weve created a new system where more iowans have access to Mental Health services closer to home than ever before. More iowans have Health Insurance than ever before. And more than 80 new Valueadded Services are now being offered under our modernized Medicaid Program. Weve also replaced the old medicaid system with a coordinated team of Health Care Professionals to ensure that patients see the right provider at the right time. As a result of these reforms and innovation we have improved the focus on Health Outcomes and saved taxpayers 110 million. Our increase in Education Funding last year was made possible because of our modernized medicaid efforts. Without these vital reforms, the budget choices before us today would be twice as hard. In order to grow iowa, we must also look at policies and reforms that will continue growing family incomes. One way to do that is to close the skills gap, which in many ways is the biggest challenge facing us in the next decade. Thats why lieutenant Governor Reynolds and i set the future ready iowa goal that 70 of iowas workforce should have education and Training Beyond High School by the year 2025. Today less than half the workforce has that. Accomplishing this ambitious goal will create unprecedented opportunities for iowans and better position our state to compete in the increasingly knowledgebased digital economy. Thats why we established the future Ready Iowa Alliance which is cochaired by the Lieutenant Governor and dan holston and they will make recommendations to ensure iowans have the the sd work can grow and innovate. Even with a tight budget, we should continue to pro ortize initiatives that will grow iowas a Talent Pipeline like the stem initiati initiatives, registered apprenticeships and workbased learning for iowa students. Please help me recognize students here today from Jackson Elementary School in des moines, and our middle school and milwaukee high school, which has one of the premiere workbased learning programs in the state. Students. [ applause ] the students in the gallery will represent children from across iowa, who are counting on all of us to modernize the schools for the 21st century. Thats why lieutenantGovernor Reynolds and i launched the comprehensive Computer Science initiative. Were encouraging every high school to offer at least one high quality Computer Science course, every middle school to provide exploratory Computer Science and every Elementary School to provide introduction to Computer Science. All students need to learn how computers operate because its fundamental to their life and work. Computer science will provide students a chance to join one of the Fastest Growing and best paid fields. No student should miss out on this opportunity because of where they live. This is another step to better align education and training with essential workforce needs. We all care deeply about the safety of our family, our friends and our neighbors. However, a troubling trend has begun to emerge that threatens iowas safety on our roads. Traffic deaths were 3315 in 2015. Were 315 in 2015 and jumped to 402 in 2016. That is unacceptable. Earlier this year i called on the department of Public Safety and the Governors Traffic Safety Bureau to lead a working group to study this disturbing trend with the support of Key Stakeholders including Law Enforcement made recommendations worth your consideration. Im asking you to take a hard look at these recommendations and evaluate which can be put into law to make our roads safer. Unfortunately, too many innocent bicyc bicycles, motorcyclismotorcycli pedestrians and passengers have lost their lives on our roads. Last year, i received a handwritten note from christine and daryl harken, parents of grace who lived near riceville. They wrote, our daughter, gracies life was so sadly ended on july 29th, 2015, by someone who was driving and texting. Grace was biking safely and lawfully during a morning bike ride when a driver who was te texting struck and killed her. They went on to write, grace would have forgiven the driver and moved forward. Thats what weve chosen to do but we miss her so. Grace harkins life was tragically ended way too early. Modern technology should come with new responsibilities. I ask all iowans to join the iowa Law Enforcement community, First Responders and league of cities and all our major cell phone carriers and Insurance Industry and medical community in demanding real change in the laws for distracted and impaired drivers. [ applause ] last year, i called on the legislature to send me a Water Quality improvement bill. I was pleased with the bipartisan progress made on this front here in the house of representatives with the passage of house file 2541 last session. This bill was approved by the agricultural ways and means and appropriations committees and passed with 65 votes. This bill provided longterm dedicated growing source of revenue to help implement projects to improve habitat and Water Quality directed by the iowa strategy. The bill provided funding for Community Conservation practices and improvements for wastewater and Drinking Water facilities. By leading on this issue together, we have the opportunity to modernize iowas agricultural infrastructure, create jobs in rural iowa and promote collaboration between urban and rural communities. I believe our discussion should begin with the housepassed bill from last session. I hope we can Work Together to perfect and improve the legislation that will provide a longterm dedicated growing source of revenue for Water Quality improvements. [ applause ] i have been so blessed to serve as your governor, serving the state i love for 22 years. Im confident iowa will continue to move forward, because iowans care deeply about their neighbors and communities and creating an even better future. Im extremely thankful for perhaps the most patient person in the state, my buy, chris, as she has served as first lady with grace, shes welcomed io n iowans and visitors from around the world to terrace hill and shes volunteered to help in many ways including reading to students from Jackson Elementary School. She, chris and my entire family, thank you for your sacrifice during my time of service, Public Service. Thank you very much. [ applause ] chris told me she felt bad about missing out on reading with the first graders from jackson elementary this morning but, honey, i appreciate you being here. Im also thankful for the friendships that weve made in all 99 counties, friendships we will always cherish. Im grateful for the prayers from iowans that have encouraged me along the way. Theres no better job in the world than being governor of the state that you love. But sometimes were called to serve in ways that we never imagi imagined. As i approach the u. S. Senate confirmation process, my priority continues to be serving the people of iowa with the same energy and passion that i brought to this office each and every day. Thank you. God bless you and all the people of iowa. [ applause ] since its official opening last september, the National Museum of african history and culture has welcomed over 750,000 visitors. Sunday, American History on cspan tv takes you for a live look afterhours tour telling the africanamerican story from slavery to the first africanamerican president. Well talk with a museum specialist, mary elliott and its curator. Throughout the program our gu t guests will be talking to you and hearing your input throughout phone calls and tweets. Join us for a live exclusive visit inside the African Museum of history and culture. Join us live on cspan tv. Cspan, where history unf d unfolds daily. In 1979, cspan was created as a Public Service by americas Television Cable companies and brought to you today by your cable or satellite provider. Tonight on cspan3, a house hearing on the development of selfdriving cars. Then a discussion on the future of u. S. Israel relations. Later, a Senate Hearing on military readiness. Next, a hearing on deploying selfdriving vehicles. Auto industry officials testify before the house, energy and commerce subcommittee on Digital Commerce and consumer protection. Topics included safety, cybersecurity and