The results can be seen all across the state. Madison was recently rated as the best city in America for business by Forbes Magazine, with La Crosse, Wausau, and Green Bay ranking in the top third. Milwaukee has gained more jobs than any metro area in the Upper Midwest and is one of the fastest growing job markets in the nation.
Tonight, I have yet another announcement to make, and this is a big one - 1,000 new, good jobs coming to the Milwaukee area. We are providing economic development assistance to Kohl's, helping them greatly expand their corporate headquarters and create jobs over the next few years -- from entry level to management level -- and solidifying the future of this great company in Wisconsin.
I want to thank Senators Kanavas, Darling, and Taylor for working with my Administration to get this done.
This is part of a new, strategic focus we are bringing to economic development. We made a choice to compete at the high end by fighting for Wisconsin's rightful place producing the best products, with the most highly skilled and educated workforce anywhere in the world.
Last session, I unveiled an ambitious action plan called "Grow Wisconsin." We worked together - Democrats and Republicans - and passed into law nearly every bill I requested. No matter which side of the aisle you're on, you stood with Wisconsin's workers and families, and for that, I thank you.
We passed the most sweeping regulatory reform effort in the Midwest - cutting red tape, but protecting our environmental standards. We passed a major financial modernization bill to make new capital available to investors. We created tax credits to spur more than $250 million in angel and venture capital investment. We provided tax relief to offset the high cost of energy for manufacturers. We strengthened agriculture with a livestock siting bill, and a tax credit to help dairy producers modernize. And because we passed the single sales tax reform, this year, Wisconsin businesses won't suffer a tax penalty for every job they create.
We are on the move - and we are not stopping.
In the last few months, I have announced a series of new initiatives that will build on the momentum of "Grow Wisconsin."
With the help of Senators Robson, Hansen, and Roessler, and Representative McCormick, we will increase our investment in our state's manufacturing extension partnerships by $1.3 million.
We are creating a Wisconsin Entrepreneurs' Network that will help innovative new companies succeed.
We are launching a new effort to recruit more angel investors who provide early-stage capital for emerging businesses.
And led by our Lieutenant Governor, my Administration is opening a statewide dialogue on advancing the economic status of women.
But despite the progress we've made, the economic news isn't all good. Some areas haven't had the same economic expansion as the rest of the state. Many workers must depend on two jobs to make ends meet. And for many families, the rising cost of living - from a doctor's visit to a gas fill up - has eroded any gains they've made.
Tonight, let me outline the next steps to ensure that Wisconsin continues to lead, innovate, and create jobs:
First, let's complete the unfinished business of the last session: pass a meaningful worker training bill. We can give workers the skills they need to raise their incomes, and give businesses the trained workers they need to compete. Let's work together, and get this done.
Second, we must ensure that our energy supply is both adequate and environmentally responsible.
Under my Administration, we've made the greatest strides in years to increase our energy capacity - not only power production, but power transmission. We've given incentives to communities that site power plants or transmission lines, and we've cut by half the time it takes to get new facilities approved.
I want to thank Senators Risser and Cowles and Representatives Black and Jensen for serving on my Task Force on Energy Efficiency and Renewables. You've developed good energy policy, good economic policy, and good environmental policy all rolled into one.
By the year 2010, at least 20 percent of the energy that state government uses will come from renewable sources, and by 2015, we'll set a standard for homes and businesses of 10 percent.
In my budget, I'll also have a major new initiative on biofuels. It's time to reduce our dependence on foreign oil. When it comes to our energy future, let's rely on the Midwest - not the Mideast.
The last session has been called the most productive for agriculture in 25 years, and that wouldn't have been possible without the partnership of Majority Leader Schultz and Representatives Ott, Ward, Vruwink and Gronemus. One success was the Dairy Investment Tax Credit. In my budget, I'll ask for your help to create a similar credit for livestock producers -- providing up to $50,000 to help them modernize and expand.
In Wisconsin we've shown that we can have a strong environment and a strong economy. We're working to protect the Great Lakes, combat invasive species, and lower mercury emissions to protect our air, land, and water. And under my Administration, we've permanently protected more than 42,000 acres of pristine natural areas through the Stewardship program.
Democrats and Republicans agree on many things. But we have an honest disagreement when it comes to raising the minimum wage.
I'm for it. Most of you on the Republican side are not. Even though most other workers - including you in the Legislature - have had pay raises in the past seven years, those working for the minimum wage have not. I believe going from $5.15 to $6.50 an hour for people who haven't had a raise in seven years is reasonable.
The Legislature has the power to block this increase for the next two years without ever having a vote. In fact, it's already been five months since you first objected to the minimum wage, but you've never had a vote on the floor.
All over Wisconsin, I see people who are working so hard to support themselves. And they deserve a chance to get ahead.
It's time to approve a higher, statewide minimum wage of $6.50 an hour.
Every month you delay, minimum wage workers lose $100. It's time to take a vote - do it this month.
We're joined tonight by Craig Culver. I'm sure you recognize his name - he created frozen custard that is so good we eat it in January. Craig, thank you for being here tonight.
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Craig served on the committee that adopted the higher minimum wage - under a process that has existed under both Democratic and Republican Administrations since 1919. Like all the businesses represented on the committee, he cast his vote for a higher minimum wage. Craig, thanks for doing the right thing - and we'll keep working together to make sure this state follows your lead.
Last year, I announced my KidsFirst Initiative - a comprehensive investment in our future. I said then that it represented the priorities I would use to put together my next budget, and I intend to make good on that promise.
Let's take a few minutes to talk about the investments we'll make in our kids.
We already know that the early years of a child's life last forever. Excellent day care and early childhood education can mean higher overall development, a smaller chance of being held back in school or dropping out, and lower special education costs.
Tonight, I am announcing that my budget will include a program that will - for the first time - rate the quality of child care providers. We will create a five-star rating system, with higher levels of state reimbursement for providers with the highest ratings for quality.
With us tonight is Ann Terrell from the Milwaukee Public Schools. She helped design this initiative as the chair of our task force on child care quality. Ann - thank you for helping Wisconsin build one of the most innovative child care systems in the nation.
Every year, our state spends $300 million on child care for working families - making us second in the nation in our commitment to children. Right now, we pay the worst child care facility and the best child care facility the same amount, and that's wrong. My plan will reward quality, encourage improvement, and give parents the information they need to choose the right child care center.
From Whitefish Bay to La Crosse, from Cuba City to Oconto Falls, from Menasha to Waterloo, we have the finest four-year-old kindergarten program in the nation.
In September, I was in Port Edwards to visit a new 4K program launched in partnership with the Wisconsin Rapids School District and the YMCA. Next fall, I plan to be in Eau Claire to welcome their new 4K program.
But even today, more than half of Wisconsin school districts don't offer four-year-old kindergarten - not because parents don't want it, but because of the way the school funding formula works. Instead of encouraging communities to provide four-year-old kindergarten, we're discouraging them.
It's time to change that.
In my budget, I will include funding for grants to help make up the difference in state aid -- so communities will no longer be punished for doing the right thing.
Wisconsin has one of the best school systems in the nation, yet when it comes to school breakfast participation - we rank dead last.
School breakfast helps raise test scores, improve attendance, reduce special education costs, and fight obesity. Yet too many of our schools are not taking advantage of the program - costing Wisconsin $13 million in federal revenue every year.
Tonight, I am announcing that my budget will increase the reimbursement rate for schools that participate in the school breakfast program by 50 percent. Let's not settle for last place when it comes to getting our kids off to a healthy start.
I also believe we must continue to support the SAGE program, which reduces class sizes in the early grades. We know it works, but funding hasn't been increased in eight years. As a result, almost 50 schools have dropped the program.
In my budget, I will propose significant new funding for small class sizes, focusing on the early grades. Let's work together and get this done for our kids.
With respect to school choice, I outlined a reasonable compromise last spring. I'll support some adjustments to the school choice cap as part of a larger package to help all students, whether they are in choice or public schools.
It's time to make this happen. Students not only in Milwaukee, but across the state, are waiting for you to act.
Each week, more than 1,000 students learn about our geography, history, and culture as they try to answer the question: Where in Wisconsin is Jessica Doyle?
And at least tonight, I can answer that question. She's right up there.
Like other parents, I have enormous respect for the work of our teachers. But obviously, my favorite teacher is Jessica.
From the days I first saw her teaching when we were in the Peace Corps, I've understood what a great educator can do.
In these past two years, she's worked so hard to promote education in Wisconsin, visiting almost 200 schools in 79 school districts.
Through her Read On Wisconsin Internet book club, she's encouraging our kids to discover the joy of reading.
As part of our Community Connections initiative for middle schools, Jessica is calling attention to innovative, grassroots mentoring partnerships around the state, and encouraging more people to volunteer their time helping kids in school.
Jessica will never stop teaching. Today her classroom is all of Wisconsin's schools. And together, we'll never stop believing in the limitless potential of Wisconsin's children. Jessica - thank you.
As I put together my education budget, I'll draw from many of the good ideas put forward by my Task Force on Educational Excellence. Comprised of Democrats and Republicans, educators, business leaders, and parents, the task force made 40 recommendations, on everything from how we improve special and early education to how we help school districts with declining enrollment.
One issue raised by the task force was the need to reform the way we pay our teachers - not only to attract and retain the best educators, but also to address the rising costs of health care.
The QEO lets school districts avoid arbitration if they retain the same benefit package. That creates a powerful disincentive for school districts to develop innovative solutions to reduce health care costs.
The QEO is a roadblock to reform, and it must go.
If we're willing to move past the old arguments on the QEO, we can design a new system that better controls rising health care costs, improves teacher retention, and encourages teachers to upgrade their skills and knowledge. It will allow local communities to make their decisions at the bargaining table rather than as mandates from Madison.
We need a new system that pays teachers not only on the length of their service, but also on their ability to help children learn.
In my budget, I will offer planning grants to school districts, so they can work with teachers, school administrators, and business leaders to develop innovative ways to reward teachers for skills and knowledge that enhance student performance.
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The plan - which can build off Superintendent Libby Burmaster's Wisconsin Quality Educator Initiative - represents a better way of paying teachers. We'll add incentives to attract our best teachers to some of our most challenging classrooms, whether in inner cities or rural districts. We'll develop new ways to attract the math and science teachers we need. And we'll make real reforms in health care.
A high school graduate from Green Bay isn't just competing against graduates from Appleton and Oshkosh. She's competing against graduates from all over the world.
Yet Wisconsin - unlike most other states - requires only two years of math and science in high school. In fact, we're in the bottom 13 states in math and science requirements. Our high school requirements aren't even high enough to meet the basic standards for incoming freshmen at the University of Wisconsin.
The world has changed, and so has the job market. It is time our schools changed with them.
So tonight, I propose legislation requiring a third year of math and a third year of science as graduation requirements for all Wisconsin students. Let's raise our standards - so all students are prepared for the 21st Century.
And when it comes to expanding educational opportunity, there's no greater investment we can make than in the University of Wisconsin.
The $3.2 billion deficit I inherited forced some difficult cuts for all of state government, but particularly the University System. While we still don't have the resources we'd like, I'm committed to reversing the trend - providing more state support, adding faculty to improve quality and expand access, and increasing financial aid.
For the first time in more than 10 years, the budget I will submit to you next month will add more state money to the UW and financial aid than to the corrections budget.
Let's never forget: the UW System is the best in America. And we need to keep it on top so Wisconsin can continue to compete with anyone in the world.
It's why I'm proposing a $750 million public and private investment in biotechnology and stem cell research, including the Institute for Discovery - which will unlock new medical cures and launch new businesses that will benefit the entire state.
Joining us tonight is UW's Dr. Jeff Johnson. Dr. Johnson has discovered a protein that halts the progression of Alzheimer's in mice, and he is researching how to apply this discovery to people. His research could help an estimated five million Americans who suffer from Alzheimer's, including 110,000 Wisconsin residents.
In my budget, I'll ask you to provide $3 million for Alzheimer's research. Let's make sure Wisconsin continues to pioneer the effort to treat and one day cure this deadly disease.
In my last budget, we passed a 56 percent increase in financial aid - the largest in state history. Tonight, I propose we go a step further.
Right now, families can deduct up to $3,000 in college expenses from their Wisconsin taxes. In my budget, I will expand the deduction up to the average cost of tuition at the UW System - this year, that would be about $5,000.
Quality childcare ... early education ... smaller class sizes ... higher standards ... and a strong university system. Now that's an education agenda for the 21st Century.
One of the best parts of being Governor is spending time with so many different people across this state. And one of the hardest things about being Governor is listening to the struggles that families have in affording health care.
The father who worries what he'll do if his son gets hurt in a Little League game.
The young worker who's happy to have a job but has no health coverage - and is one illness away from financial disaster.
The senior who's splitting pills in half to make them stretch a little farther.
These problems aren't isolated to just a few families - they touch people in every corner of this state and nation.
Every state feels the effects of this national crisis, and no state alone can solve the problem. A national problem demands a national solution, and year after year, Washington has let us down.
But we can - in the meantime - take actions on the state level to lower health care costs and increase access to care. And here, Wisconsin has been a leader.
We are a leader in the number of children covered by health insurance.
We have the best senior prescription drug benefit in the country.
We are helping our farmers and small businesses lower health care costs through our health care cooperatives.
We preserved BadgerCare, Medical Assistance, and SeniorCare despite tough budget times - even as many other states cut people off.
