[applause] thank you. Kim reynolds became governor of iowa when the previous Governor Terry branstad resigned in may upon becoming ambassador to china. Governor reynolds delivered her first state of the state address last week. She talked about rewriting the state tax code, healthcare and education. From the state capital in des moines, this is 45 minutes. [applause] governor reynolds. [applause] thank you. Thank you. Thank you. Lieutenant governor, mr. President , madam speaker, legislative leaders, senators and representatives, justices and judges, elected officials, distinguished guests, family, friends, and my fellow iowans. It is an honor to be here today, as your 43rd governor and to deliver my first condition of the state address. [applause] what a country and state we live in, where a small town girl from rural iowa can become governor and have the opportunity to serve iowans at the highest level. I hope that can be an inspiration to every waitress, every grocery checker, every overworked and stressed out mom, and the little girls who dare to dream, in iowa, if youre willing 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 their 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, pro growth legislative 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. My hope is that a Water Quality bill is the first piece of legislation that i have an opportunity to sign as governor, but let me assure you, passage of this monumental legislation does not mean that 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. [applaus [applause] as we look back to 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, our 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 or zip code arent nearly as important as your ability to dream and your ability to reach for it. A place where if life got in the way of those dreams, you could find a second start. 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 or losers or waiting for government to fix every problem, it means it means when we face charges, we do what iowan have always done, and thats 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, entertainment, in workplaces, large and small, and in all facets of life and it must stop. I commend [applaus [applause]. [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 that were at an unprecedented moment in time. I also understand that this is not a partisan issue. It cant be fixed by legislation or rule making alone. You cant legislate kindness or respect or morality, they must be taught and that means that 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 to the public and private sector. [applaus [applause] what we do matters. Iowans are watching. We cant change behavior everywhere, but we have an obligation to lead, and as long as im governor, were going to. [applaus [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. Its 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 that the heart, soul, and spirit of iowa will always remain in our small towns and Rural Communities. To manning, lamar, mt. Pleasant and everywhere in between, we are defined as iowans who dream big in these small places. Like am of you, i grew up in one of those small towns and when i go home, i hear the disappointment and the share the frustration when another store closes. I appreciate the hard work taking place by our Community Leaders to keep our main streets alive and vibrant. Our downtown are the back drop for memories and the foundation for such success stories. They are their buildings and businesses and people have character and are the hub 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 lt. Govern lt. Governor gregg to lead. Well bring together leaders from across iowa will different backgrounds to be a part of this important effort. Iowans who have lived in Rural Communities all 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 single corner of our state. Our goal, to keep and bring home iowas sons and daughters and grow the next generation of Community Leaders. The. [applause] last month, Congress Passed historic tax reform, legislation that gives significant tax cuts to working class iowans and gives greater relief for families raising children. Across the board in virtually every income bracket iowans will see relief and 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 here is the thing, because of an outdated provision in iowas tax code, iowans will see a tax increase in we dont pass tax reform at the state level. Iowa is one of only three states that allow taxpayers to deduct their federal taxes and 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 place, when the federal government cuts taxes for working class 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. Ap that ap and thats not a hypothetical, its what will happen if we dont act. Therefore ill be proposing a tax reform package that significantly reduces rates, modernizes our tax codes. Eliminate federal deductibility and provides real tax relief for middle class families, farmers and small businesses. [applaus [applause]. [applause] this is an opportunity to free us from decisions made in washington d. C. And simplify our tax code, and more importantly, iowans will keep more of their hardearned money. [applaus [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 some tough times with our 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, ill be creating a bipartisan tax 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 rates with a better understanding of the larger picture. It may take a multiyear effort, but were going to completely reform our tax code. Were going to make it more were going to make iowa more competitive, and were going to continue to be a place where businesses, big and small, want to grow and expand in iowa. [applaus [applause] nearly everything that is important to our future, our 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 costs and high participation. Today our Health Care Market is collapsing. Its unaffordable, its unsustainable and its unacceptable. While 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. [applaus [applause]. [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 spite 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 patient centered approach that was already in place in 39 other states. A change that needed to be made. Under the old system, costs soared, fraud had 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. [applaus [applause] shortly after being sworn in 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 care givers to resolve issues in a timely manner and ensure ontime payments. Were continuing to work with our managed Care Organizations to ensure iowans are getting the best possible outcomes. And were reaching patients in new and innovative ways to individualize their care. This is something that 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. [applaus [applause] we must continue our efforts to provide compassionate meant health care. We resigned the system with bipartisan input and support. We moved by county by county system to a Regional Network ensuring the same Core Services for all iowans no matter where they lived. 150,000 more iowans have mental Health Care Coverage today and have access to more local and modern service. Weve invested 2 billion in Mental Health services and 2014, 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 Health illness on their exciting new initiatives where every doctor will receive the training and skills to identify and treat a patient with the Mental Health challenge. As a partner, ive included in my budget money for this innovative pilot program, a first of its kind and since Des Moines University trains more primary care physicians than any other medical school in the country, its a significant step forward. We have students and faculty from Des Moines University with us today. Please join me in thanking them for the leadership theyve shown in Mental Health education and awareness. [applaus [applause]. [applause] to improve our Mental Health system we cant just focus on the sheer number of beds. 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 this happen, im asking the legislature to remove the cap on subacute beds and im 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. [applaus [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 heal health. Addiction can be just as anguishing for families and many of you know someone who has suffered from the wave of heroin and opioid addiction that is making its way through 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 struggle, my family understands your struggles, and 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 medicated assistance treatment and a recovery program, hes turned his life around. Hes kept a job over a year and received promotions and raises and is 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 is to address this epidemic, includes increasing the use of our prescription monitoring program, enhancing intervention for iowans addicted to opioids and expanding medicated assistance treatment, the very program that helped caleb. And today, im calling on the legislature to pass legislation to reduce the number of opioids being prescribed in iowa. [applaus [applause]. [applause] this is a big step in the right direction. It will change lives and it