Gender pay e quality, increase the minimum wage. This is 35 minutes. Mister speaker, mister president , members of the legislature, fellow we louisiana in this, good afternoon, and welcome back. This time the constitution requires you to be here. Before i get to the work we have ahead of us i would like you to join me in welcoming a couple guests, true heroes, i would like to recognize the heroic efforts of a young Central Hospice student, Daniel Westland who came to the aid of a Domestic Violence victim. One funding in late number, was shot, pushed out of the vehicle and left for dead. Immediately took action as he rushed to her aid daniel was told by the shooter if you help her i am going to kill you. The aggressor shot daniel twice and struck it with his vehicle, daniel is now thriving after successful surgeries to address his injuries and i ask you to join me in welcoming Daniel Wesley and his family to the legislature today. [applause] i also ask that you keep april picks family in your prayers as they continue to heal from her tragic death. We also have another guest with us, special guests. This past year is filled with heartbreak in our Law Enforcement community. None of us will forget the morning in july, an attack on our offices claimed the lives of three brave men and left three others injured. Just last month we lost another dedicated officer in the line of duty in baton rouge. January 7th was another day that could have ended in tragedy. Agent tyler wheeler, department of wildlife and fisheries agent was shot in the head during what he believed to be a routine traffic stop. Thanks to the skills of an Incredible Medical Team and the prayers of so many people from all across the state agent wheeler is able to be with us today. We want to thank you and all of your brothers and sisters in uniform who risk your lives every day to keep us safe. Please stand. [applause] joined by his family and his wife, and next week they celebrate the first anniversary, congratulations to you all. [applause] we turn our attention to this legislative session. This is my second state of the state but since last year louisiana has endured more trials than we could ever imagine. Two historic floods and a series of tornadoes. The tragic shooting death of officer stirling followed by the attack on our Law Enforcement community. The odds of the nation have been for louisiana. On top of that, the worst budget crisis in our States History still lingering in the background. Time and time again we have proven there is no challenge too great for us to overcome. The heart of louisiana is of people, the neighborhood i rocked following the floods and the men and children who came together peacefully to pray for our state last summer. Those are the people we are here to serve. Today as we recover the historic floods in march and august 2016, the rebuilding process is underway. We have 300 homeowners, 3000 homeowners who have participated in the survey, the precondition for access to the Homeowners Program that happened today. Homeowners have the ability to apply for funding that will allow them to return to their homes and we are seeking an additional 2 billion to help our citizens to fully recover. And we have a long road ahead of us and the path to success in all things must be driven by putting the people of louisiana first and to do that, we simply must Work Together. [applause] there is no other way to make louisiana the state we know it can be. Our i refuse to allow louisiana to look anything like what is going on in washington. It is not working for them and it wont work for us. [applause] there is too much at stake to let partisanship get in the way and none of us should tolerate that. In the old testament, isaiah was dealing with attacks similar to ours, his nation was at a crisis. The old ways were not working anymore. Speaking with words given him by the lord, he said learn to do good and seek justice, correct oppression, defend the fatherless, plead for the widow. Come now, let us reason together. Let that be our plan today. Left us reason together and already the gun to reason together for the people of louisiana. I ran for governor, the same reason i suspect many of you ran for office. You want to make a real difference in the lives of people of our great state. Through Medicaid Expansion. These are the walking for. More than 77,00 77,000 of these individuals have received Preventive CareServices Since coverage began last july first, meaning seeing doctors for the first time in years. [applause] these numbers include more than 6206200 patients receiving breat cancer screenings, resulting in 95 cancer diagnoses, 7500 colon cancer screenings resulting in nearly 2200 patients having precancerous polyps removed, and 74 diagnosed with cancer. And nearly 6400 patients being hundred patients being diagnosed with diabetes or hypertension. Louisianas uninsured rate has dropped from 22 in 2013 to below 12. 5 , and nearly 43 drop in the uninsured rate. [applause] one of the greatest drops in uninsured rates in the entire country, and it is at the lowest rate on record here in louisiana. In the process of doing all this, louisiana is projected to save nearly 200 million in the first year alone, and where projected to save more than 300 300 million in the next fiscal year because of Medicaid Expansion. Thats money went to use to better fund critical priorities such as tops and Higher Education. But at the end of the day, its not the numbers that make Medicaid Expansion the right choice for louisiana. Its the people. People like Monika Calderon from new orleans. I expected to introduce you all to monica today. She studied music with hopes of specialize in music therapy. After suffering through severe headaches, she learned she had a brain mass that would need surgery. The day before surgery she applied for medicaid under the expansion, and after the surgery the doctors told her that she had an aggressive type of brain cancer. She received medicaid approval three days after her surgery. Monica told me that without medicaid coverage, she did know how she wouldve paid for all the medicines and the treatment that she would need. Monica couldnt be here today with us because shes undergoing an mri scheduled by her doctors. But you should know that these are the testimonies i hear every single day when visiting with folks across our great state. These toys would not be possible without Medicaid Expansion. And the same Catholic Christian faith that leads me to be prolife on the issue of abortion also informs my position on Medicaid Expansion because in a very real and significant way it is literally saving the lives of our working for brothers and sisters. [applause] our state has reaped tremendous benefit from Medicaid Expansion. Were getting more people the treatment they need and it doesnt just benefit the individuals. Benefits their families, too. I want to recognize dr. Rebekah gee, sector of the Public Health for the way she and her department handled Medicaid Expansions rollout. [applause] and our successes dont end there. The charge i mentioned earlier about reasoning together also noted defending the fatherless. I am proud to say that was a sentiment shared by many this past year. Thanks to the hard work of secretary walters and her team at the department of children and family services, 735 louisiana foster children found permanent homes last year, the most of any year on record. [applause] her team accomplish this feat despite the fact that d. C. Sf has faced deep cuts over the last several years with fewer employees working longer hours. Weve also worked hard to make louisiana more attractive place to work and do business. We live in one of the leading, the worlds leading destinations for new Business Expansion and relocation projects. We are defined with a 21st century economy looks like right here in louisiana. All you have to do is considered the 21 billion in Capital Investment made in louisiana over the past year to know that we are creating a more vibrant, diverse economy. And this figure doesnt include the 1. 1 billion Capital Investment we are announcing today in louisiana. Our guiding principle should always be promoting a louisiana networks for the people. That is why we revamped our Industrial Tax Exemption Program so that local governments have a seat at the table. Ive heard from many of you and the people in the state that we simply cannot give away taxpayer dollars without having accountability for results that bring good jobs to louisiana. [applause] and the reforms to the itep program have done just that. We have ensured that any incentives would be tied to job creation and Job Retention so that both competition and incentives remain strong. And as you all know, we have also been working to stabilize our budget while protecting Critical State Services. We were successful in protecting k12 education and minimizing cuts to Higher Education and our safety net hospitals. Weve ended the practice of dishonest budgeting and faced the harsh realities of our states budget situation. Weve laid the foundation for necessary longterm reforms that we all agreed we needed last year when the legislature , when you created the task force to study the states budget and tax structure. Well, the day for the longterm reform we all know is needed has arrived. It is by far one of the most Critical Missions that we have as leaders of this state. As you are all aware thats worthy of some applause. [applause] as you are all aware, louisiana faces a more than 1. 3 billion fiscal cliff on july 1, 2018, a point when a significant amount of revenue disappears and expensive credits and rebates return to their full amounts, rather than the reduced amount they are currently operating under. On top of this cliff, the stat is facing 440 million shortfall for next year and we need to fund the priorities our constituents have asked for, such as tops, improved roads and bridges and better funding for k12 education. So this is our big moment. The structural deficits have gone on for far too long. The resistance to doing what is right and necessary to fix this problem once and for all is no longer acceptable. Last year, you created a task force that spent months studying the most responsible way to reform our tax and budget structure. What we found from this review is that the options are no easier, or even substantially different, than the ones we have considered in the past. There are meaningful reforms recommended by the task force that we all should consider. So first let me tell you, i fully support the task forces recommendations for structural tax reform. Many of the recommendations of the task force were the very same solutions i proposed last year. These are the clears past two limit deficits have plagued our state year after year after year. However, many of you suggested that several of the task force primary recommendation simply are not achievable and that you will not support the plan. So now we have a choice. We can simply go down the same road we have travelled time and again, hoping for different results. Or we can chart a new path. A path that broadens our tax base, reduces tax rates, and reduces and eliminates wasteful credits and exemptions. A path that achieves stability, predictability and fairness. As you know ive proposed a detailed, comprehensive plan that will provide the stability and predictability weve been lacking in louisiana, while still incorporating many of the recommendations proposed by the task force. We can drastically reform the way we budget each year by withholding 2 percent of the revenue forecasted by the revenue estimating conference to address our Emergency Needs in times of disaster and to avoid midyear cuts. This has never before been done in louisiana. We should all support this reform. And allow its implementation when the states revenues are stabilized and sufficient. [applause] as a guiding principle i propose we move forward with the elimination of the fifth penny sales tax as scheduled on july 1, 2018, clean the remaining pennies, model are sales tax structure utilizing practices from other states. In addition, i am asking you all to give 90 percent of the citizens of louisiana an income tax cut, and simplify the Corporate Tax structure by reducing the current five Corporate Income tax rates to three lower rates. Both of these shifts would be in exchange for eliminating the deductibility of federal income taxes, a practice that is only used in three other states, and is most beneficial to higher income earners. The most significant part of this plan is in response to a problem we should all acknowledge, that our Corporate Income tax structure is broken. It is far too unstable, and is laden with credits, exemptions, and deductions that put too much of the burden of funding Critical State Services on individuals. If there are those of you that disagree with that premise, then i challenge you to defend what i am about to tell you. In 2015, in that fiscal year, 80 of louisiana corporations did not pay any state income tax. For c corps, those businesses that are taxed at the entity level, 80,000 out of 101,000 did not pay any income taxes. That means a ceos Administrative Assistant at some of the most profitable corporations paid more in state income tax than the companies they work for. Thats just not right. Basic fairness demands that we do better. My proposal will ensure that those 80,000 c corps that pay no income taxes do their part, just like that Administrative Assistant does. The commercial activity tax, or cat as many of you have heard so much about is based on gross receipts, but will be a minimal graduated amount for businesses with gross receipts of less than 1. 5 million. Corporations with receipts of over 1. 5 million will pay 35 of their gross receipts. For all other businesses in louisiana s corps, llcs and partnerships, there will be no percentage tax. These entities will instead be assessed with a set and graduated tax, based on their gross receipts. For example, if a gas station in chalmette runs as a llc and has gross receipts of less than 500,000, their income tax, the mcat, would only be 250. A Doctors Office in shreveport with gross receipts of 2. 5 million would pay 1,500. While these taxes on flowthrough entities, as they are called, would be new, they would also be fixed and minimal. Its to ensure that these businesses only pay their share for using louisianas roads and bridges, for having their employees educated and trained in our schools and universities. [applause] this broadens the base of our business income tax system to ensure that everyone pays their fair share. As i have said to you all in announcing this plan, i am open to dialogue. I am open to compromise. We can find a balance of spending cuts and revenue that helps us find our priorities. However, in almost 15 months that ive been in office only a minimal amount of cuts in services beyond the 509 that i put on the table have been made by the legislature. Criticism is only as valuable as the input and action that follows it, but we have seen very little constructive input and practically no constructive action. It just isnt helpful. We cannot continue down the path we are currently on. Its unsustainable for our state. And we cant keep moving the goal post because its politically advantageous. If theres a better idea out there lets see it. Dont hide it. Lets debate it. A lot of folks are fond of using buzz words such as less government, cut taxes, do more with less, tighten our belt, less revenue, and we must reduce the size of government. Id be willing to bet that a majority of you sitting here today have said one of those things in the past. And they are all fair statements. In many cases, i agree with you. We all want lower taxes and a more efficient state government. We would prefer to preside over state with surpluses and not deficits. But when you make those sorts of statements, youre only telling half the story if you dont follow them up with the next piece of the equation which spells out the exact consequences of what you mean exactly what you intend to cut. What college or hospital you want to close. What road in your district youd rather not see built or repaved. Or perhaps the Pediatric Mental Health program in your community that you want eliminated. Because when you repeatedly make those statements, without addressing the consequences to peoples lives, you simply turn them into political sound bites. [applause] and ladies and gentlemen, we cannot deliver Critical State Services on political sounds bites. I traveled this state over the last month Holding Meetings where every Single Member of this body was invited to attend. Most of you did. And thank you. But weve got to have a serious conversation about how to move this date forward. And then we must act. If not, the people of louisiana are going to have some tougher days ahead. Now, you have the option to choose. Accept the recommendations of the task force, accept the alternative proposal i have laid before you, advance your own plan or be willing to endorse specific cuts that will be necessary if you take a cut of approach, and then vote for those cuts. I can respect that. What i cannot respect is voting no one everything without offering your own p