Devastated our state, across the last two fiscal years we faced a 600 million shortfall and the prospect of emptying the states accounts. It was bleak. Facing economic and physical adversity. And years and managing through hard times much harder. Political dysfunction in washington. The federal government and active acrosstheboard spending cuts, cut defense spending in particular, thousands of federal government jobs were lost and private local companies that worked with the federal government were forced to scale back or d float. They shut down the federal government, and the bottom fell out of the energy market, lost 10,000 oil and gas jobs, steady economic all of it, responsibility to handle. Adversity can breed apathy, reform and innovation, in new mexico in the midst of these head winds, we chose the right path. We didnt lean on the crutch of the federal government, we set a new course and chose diverse city of our economy instead. And despite the insistence of trump we didnt take shortsighted path. We didnt take the easy way out. What we did is took the economy and decided to diversify it and grow our future. As a result we are in a different position today and we were just one year ago. Just a few weeks ago we were projecting a 200 million budget surplus. Now it has already grown to over 330 million. [applause] maybe we should give a big chunk of that back to the taxpayers. New mexico ranked seventh nationally in Economic Growth, wages are up, per capita income is up and as people look for work again and find jobs, our Unemployment Rate is declining. It was not a luxury afforded to me upon entering office so i am particularly proud to say whoever succeeds me inherits a strong savings account with at least 10 of our state revenue in reserve. First of its kind Rainy Day Fund to guard against future downturns in the economy and strong Economic Growth that is broader and more diversified than it has been in decades. As we emerge from what we have faced i am proud to say the state of the state is strong and getting stronger as our people are resilient, kind and courageous. As governor i have seen their goodness and toughness each day and though we are making important progress much more needs to be done to make new mexico the best place to be a kid and to raise a family. [applause]. The session we must Work Together to keep our economy moving. Pass a responsible budget, make new mexico a safe place for families and the worst place in america to be a criminal and firmly adopt the reforms necessary to ensure every child receives quality education they deserve. [applause] [applause] we decided 7 years ago to get off the sidelines and start fighting for a better future. Be a partner, not an impediment to small businesses. Regulate when we needed to, not simply because we had the power to and we set in motion a competitive progrowth plan that we are committed to seeing through. The plan has six key areas. Number one, reform the tax code and reduce the cost of doing business in our state and making sure it is easier to create jobs. In the past years you cut taxes 37 different times. Rollback job killing regulations and reduce the business tax by 26 and these have all been bipartisan successes but we are not done. The big one is out there. We studied it, debated it, tackled comprehensive tax reform this session. [applause] number 2, better compete with other states, create and enhance the tools we need for new jobs and encourage local businesses to expand. Our new closing funds has helped create thousands of jobs in rural and urban areas alike, attracted worldclass Companies Like safe flight and cannon and every day where businesses that want to grow, we are helping them hire and train new workers creating thousands of jobs. This has been another bipartisan success and now, lets make the job training and Senate Program a permanent part of the state budget. [applause] number 3, support small businesses, grow and invest in new startup so new Mexico Technology becomes new mexico careers. We build a strong instate preference so new Mexico Companies can better compete for state contracts and last year we launched a 40 million fund to help make our states i take to be a hightech leader. We helped cuttingedge companies establish and grow like sigma, try lumina, monica and biotech. Number 4. Target other sectors of the economy like our Tourism Industry where we have a competitive advantage over other states. We have long been the most beautiful state in the country. Our history, our culture, the diversity of our landscapes and people are simply unmatched, but in new mexico, we have the most successful state marketing brand in america. [applause] and communities across new mexico are feeling the positive impact of record shattering visitation five years in a row so lets double down on what is working and agreed together to expand and reach the absolute maximum travel that comes to new mexico so they can realize the new mexico truth that we know and recognize every day. In healthcare we have an urgent need, to ensure that nurses certified in other states can continue to work in new mexico. We dramatically expanded our Healthcare Workforce and made new mexico a great state to be a nurse. If a nurse wants to come here that is good for new mexico. Many already have but those jobs disappear if we dont cut the red tape and pass the interstate nursing compact bill immediately. [applause] number 5, infrastructure dollars, invest more in largescale projects that create jobs in the short run and lay a Long Foundation for Economic Growth. We have had success with this with big water projects throughout the state and solid strides in reforming how we spend those dollars when they are appropriated. In 2010, less than 10 of road projects were finished on time or on budget, that has changed. Last year, each and every state highway project was delivered on time and on budget. [applause] now i ask the legislator to join in this effort, no more doling out state capital fund on pork project. Instead lets spend those funds on rebuilding the foundations of our economy, and work to build infrastructure along the border. Relax, mister speaker. I am not talking about a wall. [laughter] [applause] im talking about working with our partners in mexico to build a 20 manufacturing and logistics and transportation hub along our southern border. We are building a first of its kind binational campus becoming a key corridor for trade. Fedex just opened a distribution headquarters in the region. Business parks are now fool and exports have increased by almost 1 billion since 2012. [applause] this plan is an aggressive strategy to grow and diversify our economy and it is working. We are seeing broadbased job growth and since 2011 we have added 50,000 new mexico jobs. Even in the oil and gas crash when we were losing thousands of energy jobs, our private sector was filled creating more jobs than we lost and unlike past recoveries, our growth now is not dependent fully on oil and gas. In past recoveries oil and gas accounted for up to 80 of our Economic Growth. Now at a time when oil and Gas Production is at a record level it has accounted for 40 of our Economic Growth. That is because we are seeing growth across the board and in a major victory for our state we are thrilled to welcome social media giant facebook to new mexico. I remember traveling to facebook headquarters in august 2015. At the time we were not even on their radar but i sat down with them and showed them all we had accomplished, all we had passed, they saw new mexico really is open for business. We competed hard and we won and even after they selected us for the Data Center Project our work didnt stop. We showed them what new mexico hospitality looks like. They fell in love with our people in our state and we earned another expansion of their facility, to more than triple its original size. [applause] facebook is investing 1 billion in new mexico, equivalent of ten years of private construction in albuquerque. Facebook will have 1000 construction workers on site every day from now until 2023. Los lunas growth selections are already up 72 . And the massive facility will be powered by new mexico renewable energy. [applause] a major reason this has happened is because we had the courage in 2013 to act, to Work Together across party lines on historic tax reform, to make new mexico more business friendly. What an exciting project for new mexico workers and an incredible achievement for our state. Make no mistake, we are proud of our energy sector. They make extraordinary contributions to our economy and our nations security and energy independence. But we must realize that Economic Diversification is our states path out of poverty and so it wont happen overnight there is no question that our trajectory has changed and we are building a broader private sector than ever before. To realize our full potential our model can no longer be in washington we trust. To see sustained growth to build on our momentum and earn the confidence of job creators we need to reform our tax code, put the tools we need to compete and reject job killing tax increases at every turn like we did last year and the year before that and the year before that. Over the long haul our economy will not succeed and our children wont have the opportunities we want them to have if we fail to develop a strong workforce and if new mexico is not a safe place to live our children will not stay here in our state. Education and crime. One creates opportunity, the other stifled them. One helps children realize their dreams, the other can snuff them out. Lets talk about crime first. Let me start by talking about this batch. We are joined by state Police Officer duane simpson. Officer simpson, please stand by me. [applause] during an august traffic stop, he encountered william wilson, criminal who had been in and out of prison 16 times for various offenses, aggravated burglary, committing a crime with firearm, resisting arrest, parole violation and drug charges. Most recently he was charged with 17 felonies including elevated burglary and firearm possession. And a judge let him bond out with very little accountability. This criminal shot officer simpson. This badge stopped the bullet and this, new mexico, [applause], and this new mexico Police Officer is a hero who nearly lost his life protecting everyone. I want to thank you, officer simpson. An officer after badge, the shield is a symbol of his commitment and willingness to lay down his life for us. It is not just a piece of metal. To every officer it represents their bond with their people that they serve. Officer simpson, thank you for your bravery. For the first time, on behalf of all new mexicans i would like to take this time to return your badge that saved your life. [applause] we have great Police Officers in new mexico. The very few who abuse their power need to be held accountable but we should not paint all of our officers with a broad brush. That is not fair and not right. Let me be very clear on this. I for one will never apologize for our Law Enforcement officers who are doing their job. [applause] to the Police Officers i know you are tired of arresting the same people over and over for serious crimes, frustrated that you put your life on the line to put handcuffs on criminals wrists only to see them walk 3 and you worry your next interaction with that person could result in tragedy. To every crime victim in new mexico, i hear you too. Year after year i have heard you and others in this building, they also hear you, you are tired of seeing those who hurt your loved ones or broke into your homes walk out of court with a swagger and a smile back into your neighborhoods. I learned a long time ago as a prosecutor, it is just plain common sense, that those who commit crimes will go where the laws are weak and punishments are light. In new mexico they have found their easy mark. In albuquerque, for example, we have identified 189 dangerous people, offenders who account for over 1000 felony arrests. Just the past three years. How is that possible . Certain Justice System officials have been so intent on emptying jails, shoveling cases along and dismantling the bill system, the bail system that they have forgot their primary job is to keep new mexicans safe. Just over a year ago new mexicans voted to give judges power they never had before, to hold dangerous defendants including repeat offenders in jail prior to their trial. It sounds good, but the peoples definition of a serious offense or is apparently very different from one judge have been using it. Not only are defendants being detained by judges, the judiciary has actually used the constitutional amendment that voters passed, to require the release of those defendants back into our communities prior to trial. It is a bait and switch and on behalf of every Police Officer, every crime victim and every new mexican who wants a tougher Justice System, we must Work Together this session to put a stop to catch and release. [applause] new mexico can no longer be an island of leniency in a sea of tough on crime states. For seven years i have pushed for commonsense legislation to stop crime. One year ago, 21 cars were being stolen, every single day and i was criticized for having and all crime all the time agenda. All crime all the time, for too many of our residents that is exactly what they have been living and it is time for that to end. We proposed 200 crime bills and it has proven easier to crack down on poachers than it has been to crack down on child predators. I am encouraged to hear there is bipartisan interest in tackling our crime problem and i will work with anyone who honestly wants to make our state safer. This session lets increase penalties for those who use a gun while medical crime. Crackdown on those who repeatedly drive drunk, require stiffer punishment for those who commit crimes while other charges are pending against them and pass Child Protection legislation that would increase penalties on those who pray on, abuse and kill the most precious and innocent among us. We all need a 3 strikes law with real teeth and those who kill Police Officers, Correctional Officers or children, absolutely must face the death penalty. [applause] to confront our office or shortage statewide we need to raise Police Officer salaries and pass legislation that allows retired officers to return to work in Law Enforcement right here in new mexico. It is downright silly that we allow relatively young retired officers to move to arizona, colorado or texas and elsewhere when they could have a solid second career on our Police Forces protecting our neighborhoods and we will finally give police and prosecutors the staff, tools and data capabilities necessary to cripple Crime Networks and bring down crime rates. We have seem what happens when we give Law Enforcement new tools to Better Connect crimes to criminals. The 2011 expansion of katies law has resulted in dna matches from current felony suspects to nearly 1000 unsolved criminal cases in new mexico including homicide, rapes and burglaries. It has helped convict over 415 offenders and prevented thousands of crimes. I want to share with you the story of this courageous woman, charlene. In 1999 charlenes life changed forever when she was sexually assaulted. For years the case was unsolved but in 2013 our katies law enhancement led to the capture and conviction of her rapist. These are the real results of our work. Had we not expanded this critical Law Enforcement tool we may have never faced justice and how many others would have been victims. Charlene has overcome the adversity she his face, she is a survivor who is educating and inspiring others to writing and public speaking. Charlene, you are an inspiration and you are a hero to all of us. [applause] [applause] there are a number of ways to intervene in the fight against crime, providing more Behavioral Health services in new mexico than at any point in state history, restricting the use of distribution of narcotics and medication, confronting tourists in our schools and through and wi efforts, driven alcoholrelated fatalities on our highways to historic lows. These are all important efforts, but the question remains. Will we make new mexico a very risky place for criminals to commit crimes . Or will we continue to develop a reputation as a state where crime is worth the gamble . Where Police Departments are shortstaffed, serious offenders are released from jail prior to trial and punishments are weak . Crime is costly. It inhibits Economic Growth and i have seen firsthand how it destroys the lives of its victims, their families, witnesses and perpetrators alike. We are not helpless. This does not have to be the norm and those who say the answer is too complicated have nothing but a pocket full of excuses placed there by special interests that are soft on crime. Lets stop the handwringing and take back our state. [applause] [applause] we care about and passionately debate these issues because ultimately we care about the future of new mexicos children. That is why we are here. We went the next generation to have opportunities greater than the ones we are afforded. For that to happen we must believe every childs wellbeing matters. Every child is capable of learning and regardless of race, background or upbringing, every single child can succeed. That must be our standard. I have heard impoverished kids demeaned, that they cant learn because