The annual state of the address state of the state address. This is about 40 minutes. [applause] it is not my distinct honor to present to you the governor of the state of vermont. [applause] gov. Scott thank you. Thank you very much. Mr. Speaker, mr. President , mr. Chief justice, members of the general assembly, distinguished vermont isce 1778, bound by a common oath to open up the legislative session. Families and businesses traveled over rugged mountain gaps and rugged valley roads to come together and solve problems to shape the future. The work of those that came for the greater share and influence. Through our courage and conviction, vermont has pushed forward in progress when it seemed unachievable. Example, setthe the tone and helped usher positive change into our nation for the need when the need for change was essential. My friends, we have reached that time again. History has placed us together in a difficult moment for our state and country. Here at home, we must address economic and Population Trends that diminish our ability to sustain what we have and invest more in our priorities. Nationally, we have faced political divisions and polarization so deep and broad, it seems to shape the very foundation of our republic. The challenges we face are great, but none greater than perceiving the work ahead of us. What it means to truly serve the people. [applause] these are not small issues. The path forward requires each one of us to Work Together, pulling in the same direction towards our shared goals. When we do, our people, our communities and our values will carry us forward because the state of the state is very strong. [applause] mistake. T make no we are expected to follow through on our promises. Call for balance moderation is clear and we cannot let them down. A year ago, i sat at this podium and laid out my vision for that was vermont honest about the challenges we faced and the need for courage to confront them head on. I vowed to always put vermont first and to put myself in their shoes and boots, to better understand what they are going through. I pledged to work with legislature to create Better Outcomes for our children and families, to reform State Government by listening to frontline employees using their ideas to more efficiently meet the needs of those we serve. Allowingall while working vermont to keep more of what they earn. [applause] together, we elected to try to resort the fundamentals required to invest in our future. Imagine a future with classrooms that are actually full of kids, where more students go to college and are trained in a trade and have an opportunity to live and work in vermont. A future with vibrant communities, a thriving economy and every village, town and can, where vermonters retire after a lifetime of labor. A future where the economy is growing faster than the cost of living and our state is more affordable each year for families and businesses. Where we have a cleaner environment and safer neighborhoods, with fewer suffering from addiction, where we never struggle to meet our obligation to protect the most honorable. T is my vision for vermont even if we do not agree on what policies will get us there, i know we share these goals for our state. [applause] gov. Scott here is the blunt reality. Ourust first restore economic and Fiscal Foundation to ensure that we have the funding needed to achieve our aspirations for vermont. My career, working construction, i learned that when you find yourself in a hole the first thing you do is stop digging. Im proud to report last year we stopped digging. We passed a budget that invested in our future and economy without raising a single tax or fee. [applause] Governor Scott we closed a budget gap of more than 60 million and limited budget growth to just over 1 while wages grew at about 2 . This means for the first time in recent history the State Government actually helped people keep more of what they earned, but this is not the time to return to the spending policies of the past. In three weeks, ill present a budget that continues our transition to a strategic and resultsbased approach, one first championed in this very chamber. It will once again be tied to a growth rate calculation based on real data, reflecting growth in wages and the economy, not predictions that have fallen short far too often. Ill call for continued fiscal discipline because vermonters still cannot afford higher taxes or fees. And i, along with my administration and members of the legislature, stand ready to prevent taxes and fees from increasing again this year. [applause] Governor Scott and just so im clear, that includes statewide property tax rates. [applause] Governor Scott having fiscal discipline means facing facts. We know our School Population is shrinking. Weve lost nearly 30,000 students in the last 20 years. Yet Staffing Levels and costs continue to rise. And property taxes continue to overburden families and businesses. Today, we spend 1. 6 billion to educate 76,000 students. These children are our future engineers, educators, and technicians, our future leaders, parents, and citizens. Think about it. If i came to you with a check every year for 1. 6 billion and asked you to educate the same number of students, i dare say that our system would look much different than it does today. It would be much stronger, more nimble, and responsive to every child. It would be the envy of our nation and one of the best Economic Development tools we could ever have. [applause] Governor Scott if we Work Together to transform our k through 12 system based on the needs of our kids and not nostalgia, we can invest much more in early care and learning, Technical Education, Work Force Readiness training, and Higher Education without raising the price tag on vermonters. We made some progress towards this cradle to career vision last year, increasing investments in our Childcare Financial Assistance Program by 2. 5 million, and in the Vermont State College system by 3 million. In our work to lower costs while protecting programs for our kids, we reached an agreement to return 13 million to taxpayers through Health Care Premium savings. [applause] Governor Scott this year, we have an even more urgent need to act, and i look forward to working with you to find solutions because if we dont, we face a significant statewide property tax increase. We cannot let this happen. Vermonters cant afford it. The state cannot sustain it, and i will not accept it. [applause] Governor Scott vermont has so much to offer, from innovative entrepreneurs and the hardest working people in america to a quality of life thats unrivaled. We frequently rank as the safest, happiest, and healthiest. We offer the best local food, beer, cheese and maple syrup in the world, and we are known for commitment to justice, equal rights and unity. [applause] Governor Scott as younger generations place more value on social responsibility, health, and community, these ideals should make us a top choice for young families, but unfortunately that alone hasnt been enough. This is exactly why i focused on affordability is so critical to our work. Last years budget milestone was an important step, but our cost of living from utilities to housing to taxes remain among the highest in the nation. So despite our many benefits, these costs deter young people from moving or staying here and encourage older vermonters to leave for a more affordable retirement elsewhere. In fact, according to irs data from 2013 to 2016, 2,000 more tax filers moved out of state than moved in. This alone represents 150 million in adjusted gross income leaving our state. I know many of us have seen this in our own families. We have children, grandchildren, siblings, or Close Friends who grew up here, moved out of state and may even want to return home, but theyve settled for a more affordable life elsewhere. Were also seeing workers age out of the labor force faster than we can replace them. Here are a few facts to consider. We have 23,000 fewer people under the age of 20 than we did in the year 2000. We now have nearly 30,000 more over the age of 65 than we did in that same year. There are 30,000 fewer people between the ages of 25 and 45 than we had 10 years ago. Ours is the second oldest population in the country. If we do nothing, well soon be number one. And think about this, outside of Chittenden County we are just three to four years having just one worker for every retiree and dependent of the state. This has got to stop. Its simply unsustainable. [applause] Governor Scott reversing these trends should be the top priority of every elected official regardless of party or political beliefs. These arent just numbers. The human and Economic Impact is real. This fall i visited mack molding, a Manufacturing Company in arlington, a great business with a strong work force, but in order to compete on a global scale, it needs to hire about 50 people to keep up with demand. And they are not alone. We hear from businesses around the state. L. E. D. Dynamics in randolph wants to hire 40. Chroma technology in bellis falls is looking for 20 in the next two years. Nsa industries will put on 50 tomorrow if they could. And global foundries in Essex Junction is hiring nearly 100. This is great news. These are great jobs, but we need the people to fill them. Whether employees are needed for business to grow or just to keep its doors open, its a common theme here. We need more workers. We cannot afford to ignore this any longer. [applause] Governor Scott these trends also shift the tax burden onto fewer and fewer people, seemingly leaving us with few choices. Cut programs we value or raise taxes. But there is a third option. We can come together and focus our efforts to growing our working age population. If we do this, we can expand our tax base. We can put kids back in our schools, help our businesses innovate and grow, and we can protect and make more of the public investments in the areas we value. Theres nothing wrong with wanting government to invest in programs that enhance the lives of vermonters, but the fact is, until were able to increase the size of our work force and grow the economy, we will not have the revenue to meet current or future demands. My administration is developing a work force Expansion Plan that looks at how we educate and place our students, train and retrain to create more opportunities, and how we recruit families and graduating students to live and work here. A good place to start is in recruiting from a pool of talented, committed workers already here in our state. Our National Guard and retired fulltime service members. The vermont National Guard has nearly 3,500 members here in the state, a third of whom arent vermonters. So when they leave the guard, they leave vermont. Additionally, young people in our region signing up for Service Often do so in other states because they offer more and better benefits. These are the men and women who bravely serve our country and communities. They have valuable skills that benefit our employers and economy. They can help us grow our work force and put kids back in our schools. Thats why im proposing a package to level the Playing Field by offering tuitionfree college in vermont for those who commit to serve in our National Guard. [applause] Governor Scott in addition, when a veteran is looking to transition from fulltime service to the work force, were going to make sure they receive credit for the skills they learned while in uniform by working with the secretary of state to expedite professional licensing. And, if we want to compete with other states, we must make vermont more affordable for retired veterans. [applause] Governor Scott heres the best part which is why ill propose to remove the income tax on military pensions. [applause] Governor Scott access to postsecondary training and retraining is important to all vermonters. My budget address will outline a plan to expand adult Technical Education and other proposals to better serve the current needs of workers in our businesses, but we also must do more to reach workers, specifically younger workers and entrepreneurs who currently live elsewhere, who would like to live and raise their family in the safest and Healthiest State in the country. Thats why in my budget address ill propose a bold , Sophisticated Campaign to identify and persuade working age individuals, families, and entrepreneurs to relocate to vermont. This program will use state of the art targeting to direct outreach to individuals and businesses to increase the number of workers, and with a selfsustaining funding model with measurable results, the return on investment will be tracked and reported to me and to the legislature. Building on our Work Force Development initiatives, we must also continue to invest in a strong economy. Last year, we made the single largest investment in history with a housing bond which leveraged more to increase availability of decent Affordable Homes for our work force. This will result in over 600 additional units, with more than 100 under construction this year. It will employ 1,000 vermonters, attract new workers to the state, and generate 10 million in new wages. As well, we invest in our communities, supporting 22 projects in our downtowns and village centers. My budget will propose continued investment in both of these areas. We also expanded the number of tax financing by six. With this economic tool, communities like bennington, springfield and newport can now drive much needed development in parts of the state that need it the most. Looking ahead, we must continue to help startups grow and businesses thrive so they can increase wages, create new jobs, and help generate revenue organically. Thats why in my budget i will propose flexible ways to support Small Businesses and other pro Growth Initiatives and investments. But we must ensure the impacts are felt in all corners of our state. For far too long success has been counted in broad terms. In statistics that fail to consider geography. Across our state proud communities and the people who call them home have yet to benefit from economic recovery. I grew up in berry. Im proud of my hometown. And wouldnt be standing here today if it werent for the positive influence of the people and our sensitive community. Sense of community. Unfortunately its harder and harder for some communities to maintain their unique identity as Economic Opportunities become more difficult to find outside of burlington. From the northeast kingdom to the marble valley, from the Canadian Border to the shores of the connecticut river, from richford, small towns and Regional Economic centers that help build our state are stuck in an Economic Cycle they did not create. And as a result, far too many of our neighbors find themselves in a place they can no longer afford. The time has come to make this session their session. [applause] Governor Scott we must consider the effects of our actions that have on every county, city and town. Imagine how it must seem to a family who is struggling to get by, who cant afford to pay their property bill to turn on the news and hear that marijuana debate was ranked vermonts number one news story of 2017. I talk to people every day about the biggest issues they face in their daily lives and their hopes for the future. They need us to understand their struggles. And consider them as we prioritize limited time we have here in montpelier to make a difference. [applause] Governor Scott i can tell you this. Vermonters know our challenges because they live them. They also know that with a steady approach and a willingness to change course, the solutions will come. But theyre eager for us to do more and faster. I look forward to working with you on Economic Development proposals aimed at expanding growth to all 14 counties. So all families, all kids feel the hope of a Bright Future in vermont. Whether theyre from burlington or brunswick, whether they want to be an engineer or run the family farm, montpelier must help every person and every county succeed and thrive. [applause] Governor Scott our commitment to improving the future extends far beyond work in this building. Its also about providing good service and good government. Over the last year we listened to our front line state employees and their ideas are working to make government more efficient and effective. Through our pivot program, state employees are working closely with our chief performance officer to identify and eliminate inefficiencies. This program was modelled after toyotas successful lien techniques, a product designed to increase productive by empowers employees to system reduce systematically reduce waste. Improving advantage turn around time by 30 . Leaned leadingn trainers. In improving the capacity so we can have roughly 3,000 state workers trained at no additional cost to taxpayers. There are currently 44 pivot projects underway developed by state employees to do things better and faster. Now, i realize this isnt flashy or glamorous. But this type of modernization helps get more value from each tax dollar, cut through red tape and improve customer service. This is important work and for vermonters this means a State Government geared towards continuous improvement, Better Service done more efficiently and producing more value. [applause] Governor Scott as we work to improve State Government, rebuild our work force and grow our economy, we will not lose sight of the values that make vermont a leader in so many ways. Last year we showed when we invest in our existing resources strategically, when we focus on outcomes, not just spending, we not only protect our most vulnerable and the things we value, but we can do it in a way thats more affordable and supports economic growth. That includes our ongoing work to protect impaired waterways and address the impacts of climate change. Last year we committed 51 million to clean water projects, increasing state funding by over 70 . Our agencies of natural resources, agriculture and transportation have already put more than 17 million to work for cleaner water. And i know [applause] Governor Scott and i know we must find a long term solution. I look forward to working together to ensure we invest the money wisely in projects well produce immeasurable Water Quality results. Climate change continues to have a negative impact, disrupting our way of life, but our fate is not predetermined. Already so much good work is being done by businesses, utilities, individuals, and at the state level with our commitment to clean energy and carbon reduction goals and our participation in the u. S. Climate alliance. Thats why i created the Climate Action commission. It will work to move key initiatives forward with these goals in mind. And my administration will work with our partners to make electric vehicles more accessible to all. We need to continue this work in a practical way that ensures all vermonters benefit, enhancing opportunity, protecting the most vulnerable. Because together we can make a difference. [applause] Governor Scott weve also been a leader in access to health care. Lets build on that with a focus on prevention, to keep us healthy while moderating costs. We will continue to test the voluntary Pilot Program that pays based on quality of care rather than quantity of service. More than 5,000 providers, including the majority of vermonts hospitals, have chosen to partner with us in 2018. As we continue to evaluate whether this pilot meets our goals of better help, quality and sustainable cost, ill propose additional prevention focus approaches that work to meet these same objectives. We must also continue to combat the opioid crisis. Last year we funded a new treatment hub in st. Albans. This helped us eliminate the wait list in Chittenden County which once included more than , 700. This milestone means we can now provide quicker access to lifesaving treatment across the entire state. [applause] Governor Scott i also created an Opioid Council to strengthen our approach. They worked last year to do just that. Identifying strategies to identify the four legs of a stool. Prevention, treatment, recovery, and enforcement. Well expand upon a number of their proposals this session including helping those in , recovery transition to the work force and continued work with the office of professional regulation to increase the number of treatment professionals. We know this issue touches nearly every vermonter. We should be proud of the fact that efforts born from this very chamber are being implemented across the nation. But we will not slow our progress or our search for answers. For nearly a decade we watched the incredible toll this crisis has taken on our families and communities. Our success will be counted one life at a time. A young man in recovery going back to work, a mother seeing the light in the eyes of the child once thought lost forever. A Community Free from fear of crime and violence and one less child brought into this world affected by addiction. [applause] Governor Scott i know the work i described today wont be easy and there will be times during this session that will frustrate all of us. There will be a political jab or an elbow thrown every now and then. But i ask each and every one of you to remember that if we fail to focus on putting our economic house in order, then well be back next year and the year after and the year after that seeking shortterm stop Gap Solutions to solve longterm problems. But if we demonstrate the fiscal discipline to hold the line on taxes and fees and keep budgets in line with economic growth, we will put our state on solid footing. So we can invest in programs we value and leave vermont better prepared for the next time the national or Global Economy takes a turn for the worse. The time we have as leaders is always fleeting. But the impact we have on the future can last forever. When those who come after us look back on this time in our history, what will they see . What we have done, what we could to preserve civility . To be a good role model for our children . Will we uphold the the legacies of leaders . Giants in their time who served our state and nation with dignity and humility and treated others with respect. Or, will we be swept up by the rising tide of bitterness and partisanship above all else . The solutions we were elected to but we mustievable, not let our work be called by politics to it must resist the instinct to retreat ideological corners. Progress requires a willingness to compromise. To listen. To find consensus and be honest and respectful brokers on behalf of all vermonters. As drawn broke on july 1, 1863, the 2nd vermont brigade was in maryland under command of general john sedgwick. That day orders came down that reinforcements were needed north in the small town of gettysburg just over the pennsylvania border. With action escalating quickly, the general knew his troops would have to march nearly 40 miles before reaching the battlefield. By then all might be lost. Then and there general sedgwick famously ordered put the vermonters ahead and keep the column tight. he knew that with vermonts commitment to the cause of freedom an urgency of duty setting the pace that vermonters would pull the rest of the troops along, arriving sooner and helping to turn the tide at gettysburg and eventually save the union. Friends, this is our time to move ahead and keep the column tight. Its time for us to lead again. [applause] Governor Scott now, i dont know when this period of hyper partisanship and anger will end, but i do know we cant fight hate with hate. Or anger with anger. We must do everything we can to pull our nation out of darkness and restore civility and respect to our public process. [applause] Governor Scott and that includes the viciousness we see on social media. Wed have an opportunity to set an example with our actions. We can commit to meaningful dialogue and be guided by shared principles. We can Work Together towards consensus whenever possible and compromise when its required. If we do these things, we will make a difference in the lives of vermonters. We will live up to the promise of our history. And in the decades to come, the record will show in our nations hour of need vermonters once again led the way. Thank you. [applause] 30,n tuesday, january President Trump will get his first state of the Union Address. Our coverage begins with a preview at 8 00 p. M. , followed by the state of the Union Address at 9 00. After that we take your calls in every action from members of congress. Live on cspan, cspan. Org