1. Welcome and Acknowledgments
• Speaker Bolger, Lt. Gov. Calley, Senate Majority Leader Richardville, Senate Democratic Leader Whitmer, House Democratic Leader Hammel, members of the Supreme Court, Secretary of State Johnson, Attorney General Schuette, Cabinet members, ladies and gentlemen of the Legislature, fellow public servants
• Special thanks to Michigan men and women serving in armed forces
• Citizens of Michigan
• My family
• Last year I spoke about the need to reinvent Michigan. Tonight is a continuation of that journey.
• In the 1800s we had the Natural Resources era — Michigan 1.0. In the 1900s we had the Industrial era — Michigan 2.0. It is time for the Era of Innovation — Michigan 3.0
• We are getting it right and getting it done.
• Proud of Michigan's progress but much more remains to be done.
• Review of certain dashboard measures at michigan.gov/MiDashboard.
• 12-month unemployment dropped from 11.1% to 9.3%. Lowest rate since October 2008.
• Added nearly 80,000 private-sector jobs during 2011.
• Obesity increase 1 percentage point to 32% of population. This is disturbing.
• College readiness increased from 16% to 17%. This is unacceptable.
• Non-dashboard indicators are encouraging. Our automotive, agriculture, tourism, mining and timber industries are key to the future.
• Atlas Van Line moving index shows that in 2011 we stopped the six-year trend of more people moving out of Michigan than in.
4. 2011 Accomplishments
• It was the year to attack our legacy problems and change the course from downward to upward.
• Success due in large part to partnership with Legislature.
• Passed 323 public acts in 2011. More important than the quantity was the quality.
• Addressed $1.5 billion budget deficit. No more accounting gimmicks.
• Made $255 million first deposit to rainy day fund. First since 2004.
• Made tax system simple, fair and efficient.
• Eliminated the job-killing Michigan Business Tax.
• Created $5 million Economic Vitality Incentive program for communities.
► Will recommend additional funds in next year's budget.
• Education reforms:
► Launched the Office of Great Start to focus on youngest kids.
► Reformed teacher tenure to give teaches better support system.
► Lifted cap on charter schools.
• Began discussion of public health challenges in Michigan, like obesity.
• Signed laws supporting and protecting our children:
► Extension of foster care services for young adults who otherwise would have "aged out" of the system.
► Anti-bullying law.
• Strengthening communities through Financial Accountability Act.
• Regulatory reinvention: rescinded nearly 400 obsolete, confusing and burdensome regulations.
5. Unfinished business
• New International Trade Crossing. Not a bridge issue; it's a jobs issue. Project will be done without any Michigan taxpayer dollars.
• Transportation and infrastructure: Ask Legislature to hold hearings on bills that will give Michigan a transportation system for the 21st century.
• We are underinvesting in our roads by $1.4 billion. No one in Michigan is satisfied with our roads. Let's solve this problem now.
• Need to address regional transit in Southeastern Michigan. Bus rapid transit system.
6. 2012 Agenda
• 2012 will be different than last year, which was focused on dramatic policy improvements over the broken model of the past.
• This year is about finishing the work left over from 2011, tackling unaddressed challenges and making this year about good government.
• Public safety: Will deliver a special message in March. While statewide crime is down, it is unacceptable that Saginaw, Flint, Detroit and Pontiac are among the nation's top 10 in violent crime.
• Energy and environment: Will deliver a special message this fall. Michigan must continue its leadership in protecting our Great Lakes.
• Government accountability: Will work with Legislature to improve laws related to lobbying campaign finance and ethics for state and local government.
• Good government: Need to be focused on state government itself and how it operates. Also need to be a supportive partner to local jurisdictions.
► Also instituting a comprehensive system that shows citizens our measurable results. System will include dashboards, which are external measures; and scorecards, which are internal measures.
► Pleased that we had successful collective bargaining process with our union employees. We came to a winning solution together.
• Looking forward to joint efforts to better empower our hard-working state employees to deliver the best customer service.
• Will deliver real results for real people.
• Will continue working on being more efficient and effective. We must eliminate government waste.
7. Financial responsibility
• Last year we became a positive role model for the rest of the country.
• We closed a large deficit. Now, let us show real leadership in how to strategically invest and save for the future — not simply spend money because it's there.
• We must reinvent our culture.
• Still too negative, too divisive and too many believe that our best days are behind us.
• Need to be positive, inclusive and confident that Michigan holds a bright future for our children and theirs.
• Cannot afford to slow down. Cannot afford to lose momentum. Must maintain sense of urgency.
• We must finish what we started.
• Together we will move Michigan forward.
• God bless you and God bless the great state of Michigan.