Phan, house leaders peterson and fernandez 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. Its great to be back. applause 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, theres a lot of us. Ill always be a kid from toledo, and we have folks here from all over the country and all over the world. Its uniquely arizona. We choose to move here, live here, make this home, and were 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 oconnor. 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. Thats more than 300 a day. By the time i finish this speech, 14 new arizona residents will have arrived. And im known for brevity. I think its fair to say that i speak for all of us. The native arizonans and the newcomers. When i say we love it here. applause its for good reason. Ladies and gentlemen, im proud to report the state of our state is strong. applause and the best part of is, its only getting better. Look at all thats 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, arizonas economy is more diverse. We have more manufacturing jobs than construction jobs. And were top ten in transportation, science, technology, and health care. applause our National Reputation has never been better. Our relationship with mexico has never been stronger. And with the new usmca, weve 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 im here to tell you, you aint 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. Lets continue hacking away at the permanent bureaucracy and the mother may i state. applause the people dont need the governments permission. The government needs the peoples permission. applause we believe in the freedom to work. On arizonas 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 applause up in the governors office, our phones have been ringing off the hook. Red states, blue states, all wanting to replicate what arizona has done. Representative peterson, hows 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. 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 were 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 new parents bring their infants to work. How do we know it was a great idea . Because in california, it got vetoed. laughs 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, theyre taking the opposite approach. Higher taxes. More regulations. Wasteful spending. Mountains of debt. Thats the wrong way. Well 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, were not just open for business, were open for opportunity for everyone. As a result, were now the numberone inbound state in america. applause our economy is roaring. 350,000 new jobs since 2015. Its reflected in our bursting general fund and growing revenues. But for those of you who dont know me that well yet, spoiler alert, were not going on a spending spree. applause but old habits diehard for the spending lobby. Theres a chorus of special interests, scheming, plotting, and clamoring for new and higher taxes. They dont seem to understand the reasons our new residents are coming here. It isnt to import those bad outofstate policies. Its 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 were running a billiondollar surplus. And somehow, thats still not enough . Give us a break. Even better, give the Hardworking Taxpayers a break. applause and lets 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 post9 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 id 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 shouldnt be taxing their service to country. It should be honoring their service to country. applause our budget does this by eliminating all state incomeveteransmilitary 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. Youve 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. Were connecting veterans to jobs. And were working toward the opening of two new veterans homes. And the battlefield isnt the only place where our servicemen and womens lives is at risk. Once they come home, they face new challenges with suicide rates three times higher among arizonas 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. Its 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 never modern Technology 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. Lets start by increasing access to Mental Health care. [applause] were working with senator kate brofy mcgee and representative joss weneger on a longoverdue reform. Insurance companies should be covering Mental Health just like they cover an annual physical, and were going to make sure they do. [applause] ive called on you to get rid of old laws. Today, im leading by example. Moments ago i rescinded 23 old executive orders resulting in the elimination of 18 boards and commissions we just dont need. [applause] thank you. Dont worry. Im not going to go through the list. You wont miss them. Weve been on a blitz to wipe out needless regulations. 2,289 gone. Thats the equivalent of 134 million tax cut without impacting the general fund one penny. But were 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. Theyve consolidated and even eliminated entire state agencies and theyve 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. Weve sought to chip away at the deeprooted cronyism, but theres still too many insiders and industry good old boys. Its time to clean this up. Senator michelle yugenterita has a bill that puts real people, unbiased people, on these boards. Lets 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. Its time for that to end. Lets 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 winomen who have served our country. You heard me say i want arizona to be the National Leader for veterans. Well, rentpresentative joanne osborns got the bill for our heroes and military spouses, polish your resumes. Were getting rid of your fees. [applause] were 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 etrade programs that train students in the highdemand careers of the future. These are worthy and responsible investments so with money in the bank, lets make them. We prioritize fiscal responsibility. Weve learned from the mistakes of the past. This building, we now own the deed. [applause] were sitting on our highest Credit Rating ever. [applause] treasury, how about that Permanent LandEndowment Trust fund . 6. 2 billion. The largest in history. 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 record recordbreaking 1 billion. This allows us to return dollars back to the Hardworking Taxpayers and make smart, targeted, investments. Like new roads and bridges. [applause] weve fully and permanently restored transportation dollars for our rural communities. The widening of i17, state route 189 in nogales, u. S. 95 in yuma. Last week, i called on the federal government to fund then to tonto basin bridge. [applause] and we cut the ribbon on the newly completed loop 202 into the west valley. Its progress, and next on the list, i10. The phoenix tucson corridor is an economic artery for our state, and it needs expanding. [applause] its time to accelerate completion of i10s widening in both directions. Between our two largest cities. Our budget puts the pedal to the metal with a construction of a new sixlane bridge over the healer river. [applause] this replaces a 56yearold bridge. 62,000 people drive over it every day. Thats 23 million a year. So lets break ground asap. We need to connect all parts of our growing state. Rural areas still lack highspeed internet. Lets 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 been before and pave the way to get all of rural arizona logged on. All throughout our priorities, youll see a focus on rural arizona because there are 15 counties, and news flash, there are needs outside of the great state of maricopa. Nearly 20 years ago, arizona voters passed the tribal state gaming compact. Its been a net positive for all arizonans. These compacts begin expiring within the next few years. For months, weve been working to develop a modern, updated agreement, one that is regulated, safe, and limited. And that preserves the culture of our state. Id like to thank all the tribal leaders who have been hard at work on these negotiations. Its 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 shouldnt 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] weve been a leader on water, and with this approach, we will be an Even Stronger leader far into the future. Now, theres no new shortage of jobs in arizona. But many vital jobs remain unfilled in our rural communities. So, weve got a plan. A rural jobs initiative. First, tourism and state parks. Theres no place more beautiful to vacation than scenic arizona. And with an infusion of new dollars, were going to work with tourism director Debby Johnson to ensure the whole world knows it. Next, workforce. Small business is the backbone of our economy. So were 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 were expanding these efforts with a 4 Million Investment in our rural colleges. There are currently over 2,000 manufacturing Jobs Available outside maricopa and pima counties. Lets get these jobs filled and attract even more. Asu, u of a, and nau have stepped up to fuel our economy and were about to pour on the gas. Regions chair dr. Larry penley has proposed what he calls the new economy initiative. Its an innovative approach that enhances our capacity to graduate more students for the critical jobs of today and tomorrow. Its just the latest effort by our universities to solve problems and to do it the arizona way. 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 well cover your college tuition. The effort is paying off. Enrollment in the Teachers Academy has skyrocketed with 2,170 students now participating. Were 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. 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. Arizonas future depends on these educators. Lets provide them with access so they can get to the front of the classroom debtfree. Theres 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, were actually 1 of 5 states out of 50 seeing an increase in enrollment. And this is news we can all c