address. >> speaker bowers, president phan, house leaders peterson and fernand fernandez, senate leaders gray and bradley, chief justice, members of the legislature and judiciary, my fellow arizonans, thank you so much for the warm welcome. it's great to be back. allow me to start with a question. show of hands. who here today in this chamber was born somewhere other than the state of arizona? as you can see, there's a lot of us. i'll always be a kid from toledo, and we have folks here from all over the country and all over the world. it's uniquely arizona. we choose to move here, live here, make this home, and we're not alone. as we stand here today, more than 70% of our adult citizens were born somewhere else. so were some of our greatest state icons. leaders like secretary of the air force, barbara barrett. trail blazers like raul castro. legends like jerry colangelo. quiet saints like bill bidwell. giants like sandra day o'connor. and heroes like john mccain and pat tillman. and the new comers keep coming. last year we punched through 7 million people and left massachusetts in the dust. [ applause ] 120,000 people are moving here a year. that's more than 300 a day. by the time i finish this speech, 14 new arizona residents will have arrived. and i'm known for brevity. i think it's fair to say that i speak for all of us. the native arizonans and the newcomers. when i say we love it here. [ applause ] it's for good reason. ladies and gentlemen, i'm proud to report the state of our state is strong. [ applause ] and the best part of is, it's only getting better. look at all that's happening around us. our crime rate is dropping and school test scores are rising. our credit rating is up and our debt is way down. household incomes have hit a record high. and our poverty rate has dropped faster than any other state in the nation. [ applause ] as we enter a new decade, things look a lot different than when we entered the last one. today, arizona's economy is more diverse. we have more manufacturing jobs than construction jobs. and we're top ten in transportation, science, technology, and health care. our national reputation has never been better. our relationship with mexico has never been stronger. and with the new usmca, we've paved the way for an even stronger trade relationship with our valued neighbors to the south. [ applause ] we got here by doing things our way. the arizona way. and i'm here to tell you, you ain't seen nothing yet. [ applause ] here, common sense still rules the day. other states and d.c. politicians might be focused on growing government. arizona grows opportunity. our population is surging, but the size of our government is actually shrinking. [ applause ] all while providing faster, more efficient customer service to taxpayers and citizens. in arizona we believe in maximizing freedom and limiting government. we believe government should do fewer things but do the things it does well. let's continue hacking away at the permanent bureaucracy and the mother may i state. [ applause ] the people don't need the government's permission. the government needs the people's permission. [ applause ] we believe in the freedom to work. on arizona's 50th birthday, someone wisely predicted arizona will continue to be the haven for people who seek an outlet for initiative and a reward for work. that was barry goldwater in 1962. in that spirit we passed universal recognition of occupational licensing. allowing anyone in america to bring their skills to arizona and get to work. [ applause ] up in the governor's office, our phones have been ringing off the hook. red states, blue states, all wanting to replicate what arizona has done. representative peterson, how's that for model legislation? fact is, if imitation really is the sincerest form of flattery, then arizona should be blushing. we were the first state in the nation to pass the american civics act. 4 oa 34 others have followed suit. only 15 more to go. our unanimous work on opioids was the most aggressive and comprehensive policy in the nation and prompted other states and the federal government to take notice and take action. and way back in 2016 we protected free speech on our college campuses. when it takes texas three years to catch up, you know we're doing something right. here, you can brew beer, churn ice cream, and make an honest living. now, all we need is uber and lyft back at sky harbor. [ applause ] we launched the happy babies program to let any parents bring their infants to work. how do we know it was a great idea? because in california, it got vetoed. we fired the lobbyists, freed the blow dryers, and alonged the way, even managed to legalize potlucks. cutting red tape, we were doing it before it was cool. but the most surprising news is not everyone is mimicking us. places like california, illinois, washington state, connecticut, and new york, they're taking the opposite approach. higher ta eer taxes. more regulations. wasteful spending. mou mountains of debt. that's the wrong way. we'll stick to the arizona way. [ applause ] while those states are crushing people and businesses with burdensome regulations and unnecessary laws, the residents are flocking to arizona. here, we're not just open for business, we're open for opportunity for everyone. as a result, we're now the number-one inbound state in america. our economy is roaring. 350,000 new jobs since 2015. it's reflected in our bursting general fund and growing revenues. but for those of you who don't know me that well yet, spoiler alert, we're not going on a spending spree. [ applause ] but old habits diehard for the spending lobby. there's a chorus of special interests, scheming, plotting, and clamoring for new and higher taxes. they don't seem to understand the reasons our new residents are coming here. it isn't to import those bad out-of-state policies. it's to escape them. [ applause ] so let me reiterate what i said in five prior state of the state speeches and two inaugural addresses. because, apparently, it bears repeating. no new taxes. not this session. not next session. not here in this chamber. not at the ballot box. not on my watch. [ applause ] we're running a billion-dollar surplus. and somehow, that's still not enough? give us a break. even better, give the hardworking taxpayers a break. [ applause ] and let's start with the ones who we can all agree have sacrificed the most. we are blessed to have more than 600,000 veterans in our state. [ applause ] one of the largest populations of veterans in the country. from world war ii to post-9/11. our greatest generation to our newest generation. these brave men and women are heroes to whom we as citizens owe a debt of gratitude for all the freedoms we enjoy each and every day. [ applause ] i'd like to ask all the veterans in the chamber today to please rise so we can recognize and honor your service. [ applause ] yours is a public service in a league of its own. as president lincoln said of our veterans, "the world will little note nor long remember what we say here, but it can never forget what they did here." to say these individuals are great americans is an understatement. once retired, our vets continue to give back. we can never repay them, but we can at least do our part to demonstrate our appreciation. our vets have already earned their benefits. put their lives on the line. the government shouldn't be taxing their service to country. it should be honoring their service to country. [ applause ] our budget does this by eliminating all state incomevet pensions once and for all. [ applause ] we have a goal to make arizona home base for veterans everywhere in the country. these women and men make our state stronger. to all our veterans everywhere, from california to new york state, arizona wants you. all of you. you've put our country first, and now with this budget, arizona will put you first. [ applause ] eliminating taxes for our veterans is one way but not the only way we can honor our heroes. we're connecting veterans to jobs. and we're working toward the opening of two new veterans homes. and the battlefield isn't the only place where our servicemen and women's lives is at risk. once they come home, they face new challenges with suicide rates three times higher among arizona's veterans. our department of veterans services under the direction of colonel wanda wright is a national leader in addressing veteran suicide. through the "be connected" program, veterans are connecting with one another for support and behavioral health services. what more needs to be done for all arizonans struggling with this growing crisis. it's now the eighth leading cause of death in our state. this is a national problem, one needing arizona solutions. last year, dr. kara krist, leader of the department of health services, convened a group of stakeholders and mental health experts to develop a plan to combat suicide and save lives. and when it comes to our kids in the iphone era, they face a world dramatically different than the one we grew up in. modern technology, social media, loneliness, vaping, we need solutions that focus on the whole child. promoting personal resilience. leveraging our community in a supportive environment. let's start by increasing access to mental health care. [ applause ] we're working with senator kate brofy mcgee and representative jen weneger on a long-overdue reform. insurance companies should be covering mental health just like they cover an annual physical. and we're going to make sure they do. [ applause ] i've called on you to get rid of old laws. today, i'm leading by example. moments ago i rescinded 23 old executive orders resulting in the elimination of 18 boards and commissions we just don't need. [ applause ] thank you. don't worry. i'm not going to go through the list. you won't miss them. we've been on a blitz to wipe out needless regulations. 2,289 gone. that's the equivalent of $134 million tax cut without impacting the general fund one penny. but we're not done yet. i issued a new executive order with a new reform. if the government ever deems a new regulation absolutely necessary, it must first identify three others to eliminate. the -- [ applause ] you get it. the result, new regulations will naturally mean less regulations. [ applause ] overall, we are doing more with less. our hardworking state employees are rooting out waste. they've consolidated and even eliminated entire state agencies and they've reduced the state fleet by 767 vehicles, saving taxpayers $31 million. other areas of government could follow their lead. there are hundreds of unelected boards and commissions that exist in a dark corner of state government. often escaping accountability and scrutiny. we've sought to chip away at the deep-rooted cronyism, but there's still too many insiders and industry good old boys. it's time to clean this up. senator michelle yugente-rita has a bill that puts real people, unbiased people, on these boards. let's pass it. [ applause ] last year during budget negotiations, senate democratic leader david bradley alerted us to something new. boards stockpiling cash and sitting on bank accounts of millions in reserves. all while continuing to burden real people with fees. it's time for that to end. let's freeze the fees and free the people. [ applause ] plumbers, barbers, nurses, and engineers, no one should ever have to buy their freedom back from the government. least of all, the men and women who have served our country. you heard me say i want arizona to be the national leader for veterans. well, representative joanne osborn's got the bill for our heroes and military spouses, polish your resumes. we're getting rid of your fees. [ applause ] we're also going to target more resources toward our trade programs with an eye toward achieve 60az. at our community colleges, a full restoration of s.t.e.m. and workforce development funding. [ applause ] in our public schools, more dollars to ct e-trade programs that train students in the high-demand careers of the future. these are worthy and responsible investments so with money in the bank, let's make them. we prioritize fiscal responsibility. we've learned from the mistakes of the past. this building, we now own the deed. [ applause ] we're sitting on our highest credit rating ever. [ applause ] treasury, how about that permanent land endowment trust fund? $6.2 billion. the largest in history. [ applause ] well done. and last year, instead of going on a sugar high and spending through our surplus, we brought our rainy day fund to a reco record-breaking $1 billion. [ applause ] this allows us to return dollars back to the hardworking taxpayers and make smart, targeted, investments. like new roads and bridges. [ applause ] we've fully and permanently restored transportation dollars for our rural communities. [ applause ] the widening of i-17, state route 189 in nogales, u.s. 95 in yuma. last week, i called on the federal government to fund then tonto basin bridge. [ applause ] and we cut the ribbon on the newly completed loop 202 into the west valley. it's progress, and next on the list, i-10. [ applause ] the phoenix/tucson corridor is an economic artery for our state, and it needs expanding. [ applause ] it's time to accelerate completion of i-10's widening in both directions. between our two largest cities. our budget puts the pedal to the metal with a construction of a new six-lane bridge over the healer river. [ applause ] this replaces a 56-year-old bridge. 62,000 people drive over it every day. that's 23 million a year. so let's break ground asap. [ applause ] we need to connect all parts of our growing state. rural areas still lack high-speed internet. let's triple our investment in rural broadband grants and invest $50 million in smart highway corridors to install broadband around our rural interstates. this will make our highways safer and smarter than ever b n before and pave the way to get all of rural arizona logged on. [ applause ] all throughout our priorities, you'll see a focus on rural arizona because there are 15 counties, and news flash, there are needs outside of the great state of maricopa. [ applause ] nearly 20 years ago, arizona voters passed the tribal state gaming compact. it's been a net positive for all arizonans. these compacts begin expiring within the next few years. for months, we've been working to develop a modern, updated agreement, one that is regulated, safe, and limited. and that preserves the culture of our state. i'd like to thank all the tribal leaders who have been hard at work on these negotiations. it's been a give and take and a worthwhile agreement is this close. we owe it to our tribes and our citizens to get this done. [ applause ] thank you. last year we came together and passed the drought contingency plan. it was the most significant water policy in 40 years. we will continue to protect lake mead, the colorado river, groundwater and our ag jobs. [ applause ] but we shouldn't be dealing with this issue one generation at a time. we need a strategic ongoing effort to turn arizona into the international capital for water innovation. look at all israel has accomplished. why not arizona? [ applause ] we've been a leader on water, and with this approach, we will be an even stronger leader far into the future. now, there's no new shortage of jobs in arizona. but many vital jobs remain unfilled in our rural communities. so, we've got a plan. a rural jobs initiative. first, tourism and state parks. there's no place more beautiful to vacation than scenic arizona. and with an infusion of new dollars, we're going to work with tourism director debby johnson to ensure the whole world knows it. [ applause ] next, workforce. small business is the backbone of our economy. so we're launching a partnership with local first arizona to strengthen small businesses, get rural arizonans back to work and bolster our local economies. our community colleges are creating a pipeline of talent, so we're expanding these efforts with a $4 million investment in our rural colleges. there are currently over 2,000 manufacturing jobs available outside maricopa and people ima counties. let's get these jobs filled and attract even more. [ applause ] asu, u of a, and niu, have stepped up to fuel our economy and we're about to pour on the gas. regions chair dr. larry penley has proposed what he calls the new economy initiative. it's an innovative approach that enhances our capacity to graduate more students for the critical jobs of today and tomorrow. it's just the latest effort by our universities to solve problems and to do it the arizona way. [ applause ] like working to address the national teacher shortage, through the arizona teachers academy, we made a commitment to our aspiring teachers. you stay and teach in arizona, and we'll cover your college tuition. the effort is paying off. enrollment in the teache erers academy has skyrocketed with 2,170 students now participating. we're proud to have some of the students and graduates of our teachers academy here today. ladies and gentlemen, will you join me in welcoming these new arizona teachers. [ applause ] this year, we intend to build on our momentum with reforms sponsored by senator paul boyer. allowing even more students to go through the academy. students seeking degrees in math and science, teachers specializing in educating blind children. arizona's future depends on these educators. let's provide them with access so they can get to the front of the classroom debt-free. [ applause ] there's still work to do to address the teacher shortage, but a recent study by the center for american progress is encouraging. arizona has experienced the second highest growth in new teachers enrolling, in teacher preparation programs, we're actually 1 of 5 states out of 50 seeing an increase in enrollment. and this is news we can all celebrate because the state of our state can only be strong with strong public schools. [ applause ] here are the facts. over the past five years, we've increased per-student spending more quickly and consistently than at any time in the past 20 years. today, arizona is one of only a few states in the nation demonstrating academic improvements over the last decade. we provided funding to get schools built faster and on time to meet growing demand, and most importantly, by the start of the new school year, teacher pay will be up 20%. [ applause ] thank you. in total we've pumped $4.5 billion in new investments in arizona schools and with our latest budget, that figure will rise to $6.6 billion. and we've done all of this without raising taxes. [ applause ] in addition, an even larger investment in school counselors, cops on campus, and school safety. a stronger focus on cte in the trades. more money for the arizona teachers academy and teach for america. and a full, complete, and accelerated restoration of flexible funding two years ahead of schedule. [ applause ] speaker bowers, president phan, when you're ready to vote, i'm ready to sign. [ applause ] there's still more we can do to help children in our state who are facing the biggest challenges. the late great john mccain called education the civil rights issue of the 21st century. and he was right. as he put it, what is the advantage in a low-income area of sending a child to a failing school and that being their only choice? in that spirit we've worked hard to create more choice and opportunities for kids and their parents. open enrollment. public charter schools. education savings accounts. and in arizona much of this work has been bipartisan. we're celebrating 25 years of public charter schools in our state. another arizona idea that's been a model for the country. and -- [ applause ] and today, we are honored to have the two trail blazers who led this bipartisan innovation. one republican, o