Honored guests, friends, my family and, of course, our first lady, miss lori. Before i begin, allow me to add my welcome and my best wishes for all the new members of the legislature joining us here today. Thank each of you for bringing your Life Experiences and your unique perspectives to our important work here in the peoples house. Also, i have the privilege today of introducing newly elected Supreme CourtJustice Robin brodin to this chamber and to the idaho judiciary. Congratulations, madam justice. The new year also brings some key departures from our executive branch of government. Im sure you will join me in wishing kevin kemp god speed in his new responsibilities as two eventful and successful years as the director of the department of corrections. We are also losing sam hodge to a well deserved retirement from the office of aging. And kelly pierces experience and leadership will be missed with his recent retirement as administrative of the division of building safety. I extend my thanks and best wishes to each and every one of them. Finally, this will be the last legislative session for Dick Armstrong as director of the department of health and welfare. His stalwart and tireless leadership has set a High Standard for whoever takes on that difficult and often thankful responsibility next. Dick will be retiring in june and hell be leaving big shoes to fill. Dick, i wish you god speed. Ladies and gentlemen, it is my high honor and privilege to report to you today that the state of idaho is resurgent and, in fact, is gaining National Reputation among the states for our stability and our strength. Our finances are secure. Revenue is exceeding expectations. Economic growth is outpacing the overall growth of government and our own operations are more transparent and efficient than theyve ever been. More of our people are at work today than at any time in idahos history. And wages are rising, slowly but surely, along with employer demand for more skilled workers. Meeting that demand is among our most serious challenges. We are facing it head on. And i know that you share my commitment to finding idaho based Solutions Rather than waiting for our National Governments dysfunction to get turned around. So as we honor that spirit of independence, and selfdetermination, i can testify to you today that our citizens are energized and engaged in growing our economy. And improving our communities, caring for our families and neighbors, but most importantly, preparing our youth for a rapidly changing world. Seldom has the future seemed either as hopeful or as uncertain as it is today. Or that any State Government, it is beyond any State Government to bring our National Government into order. But it is our responsibility and our duty as elected leaders to preserve and protect the steady framework of opportunity that the people of idaho need in order to confidently pursue their dreams and freely express their civic virtue. Thats why such a large share of the executive budget recommendation you have before you continue addressing our fiveyear plan for improving idaho Public Schools as well as our efforts to create a seamless, Sustainable Education and Training System extending from kindergarten through career for every idaho citizen. My budget recommendations are about more than fulfilling our shared commitments and implementing our Task Force Recommendations. They are more than just about living up to our constitutional responsibilities. They are even more than providing for the Skilled Workforce that our employers need. Ultimately, my Education Funding proposals are about doing the right thing. For the next generation of idahoans and laying a foundation for their retirement, refinements and adjustments to keep pace with a dynamic global marketplace. So allow me to briefly outline some of the most crucial parts of this next round of investments. My first and most significant recommendation is for an ongoing allocation of 58 million, implementing the career ladder pay model for our Public School teachers. Along with the 75 million that we invested in that effort during the past two years, this new and largest tranche will keep us on track in reaching our fiveyear funding goal for attracting and retaining more of the best and brightest educators available. Im also calling for an ongoing investment of 2. 5 million a year for leadership training of principals in low performing schools and another 2. 5 million a year to train School Administrators on idaho teacher evaluation framework and process. As we work to improve the competitiveness of the idaho teacher pay, it is critical that we have a solid basis for rewarding excellence. Looking beyond the recent challenges that weve experienced with teacher evaluation, this training will help ensure that School Administrators can professionally, thoroughly and meaningfully assess teacher effectiveness and help guide their professional growth. Another of my k12 budget recommendations is for 15 million to help School Districts cover the cost of Higher Health insurance premiums for their employees. That will help them avoid having to backfill those costs fromreie of the Great Recession. Our Task Force Recommendations call for investing a total of 60 million a year in Classroom Technology statewide. Weve allocated 18 million so far, so now im asking for 10 million a year more in starting in fiscal year 2018 for achieving our remaining Technology Funding goal more manageable. Theres also an ongoing 6 million request in my executive budget for improving Teacher Professional Development and the opportunities therein. The idea is to ensure that teachers have the time regularly to share lesson plans and instructional resources, collaborate with each other and learn from one anothers works and what works best in the classroom. My funding recommendation additionally includes another 5 million for expanding and improoufg college ai improving college and career counseling in high schools. Based on your Rising College enrollment rate, that kind of investment helping more students, parents and educators determine the most appropriate options for enabling young people to go on to Higher Education or career Technical Training and state of alecertif. Im also urging you to continue to support the Stem Action Center and its groundbreaking Computer Science initiative. They already having a a Significant Impact on thousands of educators and tens of thousands of students. But the demand is there to expand their reach and to help ensure that every idaho student and teacher gets the chance to embrace the stem fields and the tremendous growth of Career Opportunities that they provide. Thank you, bop. [ applause ] Stem Education is critical to developing those skills most in demand in todays workplace. Sometimes the challenge and complexity of a life interrupt our best plans for pursuing our own Career Opportunities including our good intentions to cleat complete a College Degree within a traditional four or fiveyear span to my budget recommendation once zben for to 18 includes funding for an adult completer scholarship. It will provide an inaccept tif for those with some College Credits who have been away at least three years to return to the classroom and finish up. Its an important part of our strategy for reaching the ambitious and worthy goal of ensuring that at least 60 of idahoans between the ages of 25 and 34 have a College Degree or a certification by 2020. In pursuit of that goal, im recommending the transfer of 35 million to the Permanent Building Fund for Higher Education, education facilities throughout the state. That includes 10 million for the career Material Science Center at boise state university. That includes 10 million for the university of idaho to build a fund for agricultural food and environment for the cafe in magic valley. It includes 10 million for lewis and Clark State College to construct a career Technical Education building adjacent to the proposed new Lewiston High School cte facility and finally 5 million toward remodelling the gayle Life Sciences building at the Idaho State University campus in poke tella. Let me call your attention now and encourage your support for an effort to make Postsecondary Education in Eastern Idaho more affordable for students, more competitive for businesses, and more attractive and responsive to employers needs. Im speaking of course [ applause ] im speaking of the campaign to turn idaho falls into a full flenled community college. Establishing a college in Eastern Idaho will spur Economic Growth and complete a comprehensive statewide system of Affordable Community colleges options along with the Northern Idaho community college, the college of southern idaho, and the college of western idaho. This completes the cycle. This body has already set aside 5 million for startup costs. Now the people of Bonneville County must decide if the polls in may whether to invest their own future by advancing plans to provide better opportunities for students and families for those looking to improve their Career Readiness and for businesses looking to locate or expand. After seeing the difference that the college of western idaho has made right here in treasure valley, after seeing how quickly that cwi has grown to meet pentup demand for new educational opportunities, and after seeing the overwhelming positive response from employers, the college of Eastern Idaho campaign has my full and enthusiastic support. [ applause ] for those of you in canyon county, i usual your support and positive consideration of the college of western idahos effort to expand its napa campus and build a new campus here in boise. Cwi is bursting at the seams with an enrollment of 20,000 students just eight years after opening with 1,200 students. The employers who provide jobs and tax revenue here in the valley are relying on your help to meet that need. My other Higher Education priorities continue reflect the k12 career emphasis. They focus on workforce government and expanding programs at the fouryear institutions and Community Colleges that support such in demand fields as energy, Computer Science, and health care professionals. That includes 2. 4 million request to expand the Residency Program in the graduate medical education that are needed to atrez our chronic shortage of physicians and other Health Care Providers especially in idahos more rural areas. [ applause ] as many of you know, idaho ranks near the bottom nationally in number of doctors and medical residents per capital. In addition, a significant pledge of allegiance of our physicians are approaching retirement age. But we also know theres a better than average chance that when aspiring physicians have their residencies in idaho they will stay in idaho to practice. Thats why im grateful for the work of the Stakeholder Group in developing a plan for increasing medical residencies and implementing other solutions to idahos physician shortage. That includes significantly leveraging my request for expanding reden si programs with federal funds. A generally Historic Development toward making health care more accessible for all idahoans is Idaho College of osteopathic medicine. Idahos First Medical School is being developed on the Idaho State UniversityHealth Sciences cam mus in meridian with construction to begin early this year. They plan to have its first class of students with their studies in 2018. It already has secured 78 new residency positions for eventual graduates at hospitals throughout the region with more on the way. So i hope you will join me in embracing the opportunity and welcoming this important new institution to idaho. [ applause ] i also want to offer my thanks and congratulations to the Community Leaders responsible for making our Behavioral HealthCrisis Center program such a tremendous success. A third of our Community Facilities opened in twin falls about a month ago. It already joined sites operating in idaho falls and coeur dalene and a fourth is in the work in boise in providing accessible and Cost Effective alternatives to jail or emergency room visits for those struggling with Mental Health or Substance Abuse issues. They are providing significant savings on Law Enforcement responses and hospital costs and already have become critical parts of the local system of care. My budget recommendation inclulds 1. 5 million to recover remaining cost of standing up the twin falls and boise facilities. Once again, these are investments that can save our communities millions of dollars a year on the cost of emergency services. That means less stress on local taxpayers. To continue improving our statewide Mental Health system, im also requesting 10. 3 million to build an adolescent Mental Health facility in treasure ral schlie. That would also cover the cost of remodeling a unit at State Hospital south in blackfoot as a secure Mental Health facility. Now lets talk for a minute about Spending Priorities and living within the peoples means. Its no surprise that we all want tax relief. But its a top priority for some in this legislative session. But i would remind you that together we have reduced the burden of citizens on taxes nearing this tenure in fact since 2010 about 1 billion. And youll soon have legislation before you to reduce the tax base rate for Unemployment Insurance paid by idaho employers by 6. 3 this year. Now, thats 46 million in tax relief in the coming year alone and 115 million over the next three years. [ applause ] im as committed as ever to limiting the size of growth of our State Government and we should continue to make many of the efficiencies realized during the Great Recession a part of our standard operations. But i also understand the cost of failing to invest prudently and substantially in our future. So i will not entertain anything that undermines our commitment to meeting the essential State Government functions. And at the top of that list is our investments in improving education and Career Readiness in idaho. [ applause ] we are not alope in our effort to build and improve idahos workforce. From Stem Education to advanced research, we have a Strong Partner in the Idaho National laboratory. It was great to hear recently that a 1. 6 billion stateoftheart facility for handling spent fuel from the navys Nuclear Warships will soon be built there. Now were work to strengthen the capabilities of our colleges and universities by collaborating on one of our most complex challenges, addressing the growing threat of cyberattacks, like the one that was against the fish and game online licensing system just last year. You soon will be seeing