She was an excellent example and role model to all of us. She brought people together and solved problems. She will be missed by her family, her church and her friends.
Senator Zien, with unanimous consent, asked that when the Senate adjourn, it do so in honor of all military personnel that are serving and have served this country in defending freedom.
Senator Zien, with unanimous consent, asked that when the Senate adjourn, it do so in honor of Kevin Shibilski former Senator and now the new Secretary of Tourism.
Senator Darling, with unanimous consent, asked that when the Senate adjourn, it do so in honor of Peace and Security and hope that it will prevail in these troubling times.
The Chair appoints Senators Panzer and Erpenbach to escort his excellency the Governor.
Senator Panzer, with unanimous consent, asked that the Senate adjourn pursuant to Senate Joint Resolution 1 upon the rising of the joint convention.
Senator Panzer, with unanimous consent, asked that the Senate recess until 6:45 P.M..
11:29 A.M.
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6:45 P.M.
The Senate reconvened.
Senator A. Lasee in the chair.
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The Chair, with unanimous consent, asked that the Senate recess for the purpose of awaiting the Governor's State of the State Address in Joint Convention in the Assembly Chambers at 7:00 P.M.
The Senate stood recessed.
6:50 P.M.
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The President of the Senate in the Chair.
The committee to await upon the Governor appeared with his excellency the Governor, who delivered his message as follows:
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Mr. Speaker, Mr. President, Lieutenant Governor Lawton, Supreme Court justices, constitutional officers, members of the Cabinet, distinguished members of the Legislature and fellow citizens of Wisconsin:
In a spirit of deep honor and urgent purpose, I have come here today to fulfill my obligation under the Wisconsin Constitution to report to you on the condition of our state.
And I can summarize that condition simply. The state of our government is profoundly troubled. The State of Wisconsin is as vibrant as ever.
The state of our government and the condition of our people are, to be sure, inextricably intertwined. But the true measure of Wisconsin's health lies not in our fiscal deficit but in our families' determination -- not in red ink on the budget's bottom line, but in the green expanses of our farms and forests -- not in the halls of state government alone, but in the living rooms, classrooms and workplaces across our great state.
In those places and more, the vistas and values that define Wisconsin are thriving.
But here in Madison, we face a crisis -- a budgetary deficit that imperils state government -- one so severe it will, if we do not address it, imperil our people too.
The source of this problem was a departure from Wisconsin values -- and the only solution is a return to them.
Wisconsin's budget is complex. Wisconsin's beliefs are anything but.
We embrace, rather than avoid life's toughest tasks. We spend what we have, and if we have a little to spare, we share it with people who have less, or we put it away for a day when we might fall short. We don't take what belongs to others -- certainly not our children -- and use it to indulge ourselves.
And most of all, we tell it like it is.
I can't promise you'll be pleased with all I have to say today -- or with me for saying it. All I can promise -- and I do -- is that I'll level with you.
Our challenge -- here in this room -- is to prove Wisconsin's government worthy of Wisconsin's people.
Let that challenge begin today. And let it begin with me.
This won't be an ordinary State of the State Address. Speeches delivered from this podium on this occasion are typically a time for unveiling a litany of new programs, lists of new priorities and loads of new promises.
But this is a moment for protecting what's most important rather than launching a host of new undertakings. I wish that wasn't the case. This isn't the kind of speech I wanted to give, nor, I'm sure, is it the kind you wanted to hear.
There's a lot I'd like to do that we can't -- and a lot we'll have to do that I'd rather not -- and both of those circumstances trouble me greatly.
But we are going to get through this together. And Wisconsin will emerge a stronger state on the other side.
As I said in my inaugural address, it's a new day in Wisconsin. There's a can-do spirit shining across our state -- an ethic of relentless innovation and limitless possibility. All you and I need do is harness it. And harness it we will.
I want you to know the budget has occupied nearly every minute of my Administration, and it will be the subject of almost every minute of this address. In a few weeks, I'll return to present my proposals for the budget. In the interim, I hope to have the benefit of your ideas -- and somehow I feel pretty sure I will.
Today, though, I want to explain where we stand, how we got here, and the principles I believe we should follow on the road ahead.
The people of Wisconsin are entitled to know how this problem developed -- not so they can allocate blame; we need to pull together, not point fingers -- but so we can chart where we're going with a clear understanding of where we've been.
Right now, Wisconsin faces a $452 million deficit. For the next two years, we're looking at a shortfall of $3.2 billion. It is the worst deficit that any Wisconsin governor has ever faced.
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The economic slump hasn't helped this problem, but neither was it the sole cause. The simple fact is this: We're spending too much -- and we have been for a long, long time.
Over the last 15 years, state government spending more than doubled. The state workforce grew by more than 11,500 people.
We can no longer rely on the economic boom to mask spending growth. More than 166,000 of our people are out of work. Revenues to the state are down by more than $900 million. All the while, government has continued to spend more and promise more.
Other states have patched their shortfalls by tapping into rainy-day funds. The one I found upon taking office contained $201. Even at the height of the boom, Wisconsin was one of only five states that failed to set revenues aside for a rainy day. Now a storm has broken out, and we're left without an umbrella.
Wisconsin sold off its nearly $6 billion tobacco settlement for pennies on the dollar to plug a one year budget hole. As a result, we must now find an additional $600 million this year alone -- just to stay even.
That's a tragedy for our people -- and it's especially heart-breaking for me. We took the tobacco companies on when everyone said they were invincible. The settlement we won was Wisconsin's opportunity to invest in smoking prevention for kids -- health care for our people -- and so many other needs.
In this budget, the settlement would have provided $250 million in new revenue -- not a dime of it from taxpayers' pockets. Without it, services as basic as police and fire protection are in jeopardy.
Meanwhile, the combination of soaring spending and dubious bookkeeping resulted in our bonds being downgraded. Only two states' ratings are worse.
I wish we weren't in this mess. I believe firmly that we shouldn't be. But we are. We must get out of it. And we can.
The picture seems bleak. And our situation demands tough choices. But I'm bullish on Wisconsin.
I've looked this problem in the eye -- and I've looked each of you in the eye -- and I know we can solve it together.
As we do, I'll seek your help -- not simply because I want your support, but because I need your creativity and ideas. The answers are as likely to come from where you sit as from where I stand.
And we need to start today. Every moment we delay, government spends more and the deficit deepens. For this reason, I have asked the Legislature to convene a special session to cut immediately this year's budget by $161 million.
I wish we could eliminate the entire deficit in the five months left in the fiscal year. Unfortunately, without cutting essential services like health care or taking away funds that school systems and localities have already budgeted, we can't.
But we can make a serious down payment on the tough work that awaits us. Every dollar we don't spend this year is one we won't have to cut next year. So here's my challenge: Let's act quickly. And by all means, disagree with what I propose -- but answer by suggesting cuts of your own. Each of us has that responsibility.
No doubt parts of the budget process will be contentious. Allow me to propose a few principles to guide the way.
The budget is an undertaking of immense importance -- the fullest single expression of our priorities as a people. I fully expect those from different parties to espouse different principles. That's what democracy is about. And I imagine there'll be a few times when Republicans and Democrats in the Legislature unite across party lines in mutual irritation with me.
But let's never forget that Republicans and Democrats got into this fix together, and that's the only way we'll get out. In lean times, we can't afford luxuries -- least of all the mindless extravagance called politics as usual.
This crisis is too big -- too deep -- too firmly rooted for any one part of our state or segment of our society to shoulder the burden alone. We can't pit one group against another. As a matter of morality and mathematics, everyone must share in the difficult decisions that lie ahead.
During my budget listening sessions across the state, and during my first three weeks in office, nothing has had as profound effect on me as the number of people, from all walks of life, who have come up to me and said, "Governor, we know how big this problem is. We are all going to have to sacrifice. And we are all in this together. Go to it."
The people of Wisconsin are ready for action. Now it is time for us to lead.
To say we should cut spending thoroughly is not to say we should do so thoughtlessly. If we slash education, we risk undermining the asset that makes our state most attractive. We must also protect the most vulnerable of our people. And if we walk away from our obligations to local government, those who depend on essential services like police, fire protection and emergency personnel will pay the price.
Ultimately, what we owe our citizens is a government we can afford -- and a government that works. We can make state government more efficient, and we should.
We will eliminate duplication by consolidating departments or divisions with overlapping responsibilities. Just because an agency or board once served a purpose doesn't mean it still does -- or that its purpose is more important than other needs that are being cut. And we will review every program to ensure it still makes sense -- not just its proposed increase, but the base level of funding too.
Going forward, my mind will be open to every solution -- except one. We should not -- we must not -- and I will not -- raise taxes.
Wisconsin's problem is not that we tax too little. It is that we spend too much.
If common sense doesn't lead us to that conclusion, simple arithmetic will.
Wisconsin is already one of the nation's most heavily taxed states. Adding to the burden would make it virtually impossible to attract new jobs while destroying more than 50,000 of the ones we already have.
By costing us jobs, raising taxes would trigger an economic spiral that would cost us revenue too. In the long run -- and perhaps in the short term too -- raising taxes will make the deficit worse, not better.
Working families are already stretched to the limit. They're paying more for groceries – housing -- utilities -- gasoline -- and other basic needs. It would be unfair -- and it would be wrong -- to raise their taxes too.
Finally, let's solve this problem once -- and let's solve it right.
For too long, Wisconsin has budgeted for today without thinking about tomorrow. We've allowed structural problems to accumulate that make each budget more difficult than the one before. In the past, government resorted to easy, cosmetic fixes rather than making the tough calls.
Behind this problem, like most, there's a possibility -- a chance to streamline our government, reorder our priorities and embrace our shared future.
Steep, serious spending cuts are the only way out of the crisis for now. But just over the horizon, opportunities abound -- including the long-term budget solution: education and jobs policies that reduce the deficit by growing the economy.
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You know, the budget shortfall is serious, and we'll have to make painful cuts to overcome it. But let's not lose our perspective. We're still going to spend more than $22 billion over the next two years -- and that's enough money to make a real difference in a lot of people's lives.
We'll have to set priorities -- and find creative ways to do more with less -- but we can. We can do a great deal even in the short term to make Wisconsin a better place -- and even more once we get the budget crisis out of the way.
We can make Wisconsin's schools -- which are already the nation's envy -- even better.
We can improve health care.
We can strengthen Wisconsin's economy and attract the very best jobs to our state.
We can preserve and protect Wisconsin's great natural resources.
And we can restore integrity to state government
