It runs a little over an hour, Save Jerseyans:
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Lt. Governor Guadagno, Madam Speaker, Mr. President, Members of the 215th Legislature, Members of our Congressional Delegation, Members of the Supreme Court, our former governors and the people of the State of New Jersey:
This has been a difficult week for all of us who work in this State House and are committed to public service. Over one week ago, we lost our friend Alex DeCroce. During this week, wehave celebrated his life in this chamber, at his wake, at his funeral mass and, undoubtedly in the homes of the thousands of New Jerseyans whose lives hetouched during his 23 years of service in the Assembly. We cap that weekof recognition today by flying all flags on government buildings across our State at half staff in Alex’s honor. Now, if you will all please join me in a moment of silence to honor Alex’s life and legacy.
Knowing Alex as well as I did over thelast 19 years, I know he would tell me, “Enough of this now, Chris. Let’s get back to work.” That is exactly what I intend to do.
It is a pleasure to return to this chamber to report to you on the State of our State.
Today, I am proud to report that the New Jersey Comeback has begun. [More below the fold…]
How do we know it has begun? Just look around you.
In the last two years, we have cometogether to address the mess that was our budget. The decline, deficits,and departures that plagued our State just two years ago have beenreversed. The budget is balanced. Our unemployment rate is nolonger going up, it is coming down. Job growth has been restored –in the private sector, where we want it. New Jersey is back.
We have restrained the growth ofproperty taxes. We have put our pensions on a more stable and sustainablefooting. And in doing all this, we have restored confidence and pride inNew Jersey.
The New Jersey Comeback is taking placein large part because of what we have done in this chamber. Together, wehave done something that Trenton hasn’t seen in a very long time. Weworked together. We achieved compromise. And we put New Jersey and itspeople first.
For New Jersey, the corner has beenturned. Today, the debate is not about who to blame for our failures, itis how to build on our successes.
It is no longer about how to deal withdevastating decline; it is now about how to push New Jersey even further ahead.To be better than we thought we could be.
In these last two years New Jersey hasset the standard for governance in America: be honest; don’t mince words;and do the big and difficult things. Not only because it is right,but because it lays the foundation for future greatness. Now it’s our jobto finish the task.
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Job one is the economy.
Consider where we were just two yearsago.
When I raised my hand to take the oathof office then, I could not say with confidence that the State would meet itspayroll within two months. Imagine that, New Jersey unable to meet itspayroll. That was the gravity of the mess we were left to deal with dueto the mismanagement which reigned in this town before our arrival. Ourdeficit for that fiscal year, already more than half over, was more than twobillion dollars. The budget problems for the next year, fiscal year 2011,was a record deficit of $11 billion.
The solution was not easy, but it wasalso not complicated. We had spent too much as a state. We hadlived beyond our means. And by trying to tax their way out of it,previous governors and legislators had left New Jersey in 50th place –dead last among the states – in the total tax burden it placed on ourcitizens.
We had the highest tax rate in thenation, the highest unemployment rate in a quarter century, and the largestbudget deficit per person of any state in the nation.
So step one was to stop the bleeding– by stopping the spending. We cut 375 programs in that firstfiscal year, saved two billion dollars for the taxpayers, and brought JonCorzine’s budget into balance. Next, with your help, we enacted abudget that imposed discipline, in the form of another cut in spending, for thesecond year in a row: cutting spending for each and every department ofstate government.
That was tough medicine – but itwas the beginning of better health. Last year, because we took thatmedicine, we were strong enough to reduce business taxes and improve NewJersey’s climate for job creation. I want to thank this legislaturefor joining me in recognizing that – for New Jersey to grow privatesector jobs again – we must reduce the tax burden on our citizens and ourbusinesses.
Step two was controlling propertytaxes. As everyone in New Jersey already knows, they had risen 70% in theten years before I became governor. Rising property taxes were drivingpeople out of this state.
And so we joined together – andagain I thank this legislature and in particular your leaders, Senate PresidentSweeney and Speaker Oliver – to cap property tax growth at no more than2% a year. And we put the same 2% cap on the interest arbitration awardsthat were giving rise to higher taxes.
We must never forget that the rootcause of rising property taxes is always excessive government spending. As withall problems, you must get to that root cause – and together, we didit.
And here’s the good news: it isworking.
Last week, the state’s largest newspaperannounced the results of its comprehensive study of property taxes in NewJersey. The headline said it all: “At long last, tax relief.”
Step three was to get a grip on ourlong-term liabilities. Our pension system was $54 billion in debt at thestart of 2011, and scheduled to be underwater by $180 billion in three shortdecades without a change in course. It was imperative that we save thesepensions for our middle class and at the same time lift the burden off of ourtaxpayers created by the unrealistic promises made by career politicians.
And so we confronted the obvious,negotiated a solution and saved taxpayers over $120 billion dollars. Thepensions of every state worker, of every teacher, and of every retiredmunicipal employee are more secure today. By the tough choices we madetogether, we saved their pensions.
Again, the solutions were not easy,and not always popular, but they were also not complicated. We had toraise the retirement age a bit; we had to get a grip on the effect of COLAs; wehad to make sure that the contributions of employees were fair, and that thestate kicked in also. But by taking these steps we made a big dent in theproblem.
At the same time, we had a publicemployee health system that was $67 billion in deficit in January of2011. To right this wrong, we relied on two simple principles: we shouldgive employees more choice and everyone must pay their fair share. We,once again, compromised with each other to right a failing system and, in theprocess made political history in New Jersey. We came together. We tookon the special interests. We put our citizens first.
At the time, the New York Postsaid we had pulled off “something of a miracle” in pensionreform. But it wasn’t magic. In a country dominated in somany places by partisan bickering, we just had to be honest and realistic aboutthe math, and grown-up about the answers.
And the good news is this – thepeople of New Jersey can take it. We’ve shown the rest of the countrythat we are Jersey strong. Today, the results of that Jersey strength and thatJersey attitude are beginning to show.
Since our administration came intooffice, New Jersey has added over 60,000 new private sector jobs. Remember, in 2009, the state lost 117,000 jobs. According to Rutgers Universityeconomist Joseph Seneca, 2011 was the best private sector job growth year inNew Jersey since 2000. 60,000 new private sector jobs since we tookoffice. The best job growth year in more than 11 years. Here is mypromise to the people of New Jersey: We will keep the momentumgoing. I will not permit anyone to re-impose the tax raising,overspending, irresponsible ways of our past which led to our dark decade ofjoblessness in New Jersey. Stand strong with me and I will stand up foryou. We are going in the right direction and I will oppose any move toreturn us to the despair those policies brought to New Jersey and its citizens.
The new direction is clear. Wehave changed the business environment in this state and, as a result, we arechanging the jobs environment.
From Asurion (which established itsregional headquarters in Bridgewater), to Allergan (which picked New Jersey forits northeast research and development center), we have been able to attractnew jobs from around the country to New Jersey.
From Watson Pharmaceuticals (whichmoved to Parsippany), to Pinnacle Foods (which moved to Cherry Hill), employersare beginning to understand that New Jersey is once again a friendly state forbusinesses and jobs – a great place to work and raise a family.
And it’s not just around thecountry. People are recognizing the New Jersey Comeback all around theworld… Bayer put its North American headquarters in Morris County, NovoNordisk in Middlesex County, and LG Electronics in Bergen County.
We have begun this turnaround in theface of strong national headwinds.
Across our country, growth is stillanemic. There has been no national solution to our debt and deficit problem, nocatalyst for growth, no leadership on the economy.
The politics of envy have overtakenthe imperative of opportunity. Our economy suffers while Washingtonpoliticians – in both parties – fiddle. America’sposition of strength and leadership around the world deteriorates while our leadersbicker and blame.
Over the last two years New Jersey didthe exact opposite. We achieved results because we did it together.
Over the last two years we’vesaid – let’s put aside our differences on some issues sowe’re able to work together on others.
Now it doesn’t mean wedidn’t shout at each other. It doesn’t mean we didn’t getangry. You may even recall that even some of my friends had some verycolorful nicknames for me.
Now, that anger is natural, thatpassion is good, but we have shown that on the important issues, on the reallybig things, we can still come together to lead the people of New Jersey to abetter outcome.
We’ve shown that it’spossible to hold fast to key principles, but still reach compromise.
We’ve shown New Jersey, and thenation that there is a better way. That divided government can work; thatDemocrats and Republicans working together is possible. And in fact it’snecessary.
Two years ago at my inaugural, I askedSenator Sweeney and Speaker Oliver to join me in a handshake to demonstrate ourcommitment to working together – sticking to our principles, but findingcommon ground for the good of the people. Our handshake that day was asymbol, because it could be nothing more than that.
Back then, we had nothing to show thepeople but our good faith and the promise for tomorrow. Today, nosymbolic handshake is needed. Thankfully, we have shown through our deedsthat we are willing to work together. Substance over form. Accomplishments over partisanship. Thank you, Steve. Thank you,Sheila.
So in this year, in 2012, let uscontinue to show the state and the nation what is possible. Let NewJersey continue to set the example. Let New Jersey continue to lead theway.
And let us do it together.
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Over the last two years we’vehad to make some tough choices. It was important to do what was difficultand what was necessary to get New Jersey out of its hole. But, because of thesehard decisions, the shared sacrifice and because we stuck to our discipline wecan now focus on our priorities.
We will have to continue to hold theline on spending. And I guarantee you this: the budget I submit,and any budget I will ultimately sign into law in June, will be trulybalanced.
But we have been working to get tothis moment. To finally have New Jersey right side up, so we can focus on thebig things. To challenge ourselves to be better. To strive for greatness. Toensure that every New Jerseyan is given the opportunity to have the life theywant.
So in my budget, I will fulfill apromise I made to all the people of New Jersey in 2009. Real relief fromthe heavy income tax burden that has strangled our families and forced many tomove away.
I propose to reduce income tax ratesfor each and every New Jerseyan. In every tax bracket. By 10%across the board.
I also propose to fully restore theearned income tax credit for New Jersey’s working poor, which we wereforced to cut during the dark days of 2010, when growth was gone and we had nomoney. Understand what this means – every New Jerseyan will get a cut intaxes. The working poor. The struggling middle class. The newcollege graduates getting their first job. The senior citizens who have alreadyretired. The single mom. The job creators. The parents trying toafford to send their son or daughter to college.
Everyone made the sacrifice. Everyone will share in the benefit.
This will send a loud signal to NewJerseyans and would-be New Jerseyans, to families here now and families whohave left, to businesses and job creators thinking of coming here and those whohave struggled to stay: New Jersey is once again a place to plan yourfuture, raise your family, grow your business and someday retire. The NewJersey Comeback has begun.
Let’s be under no illusions– our job in turning New Jersey around is far from finished. Wehave improved our tax climate – but, there is much work to be done.
For make no mistake – we are ina competition. A competition for jobs – among countries, yes, butalso among states. In the last decade, two-thirds of all companies whichmoved jobs to a new location did not move to other countries – they movedfrom one state to another.
Here in our region, our most directcompetitors are making very different choices. In Connecticut, thegovernor has raised income tax rates on top earners and job creators. AndNew York last month enacted legislation to do the same.
Other big states are also raisingtaxes. California’s governor has proposed to raise the top rate– already among the highest in the nation, by up to two percentagepoints. Illinois has already adopted a law to raise all income taxes by67%.
In this environment, the best way tocompete is to show a different direction. Let others choose taxincreases. We choose responsible tax cuts to give our overburdenedcitizens real relief. And to help New Jersey grow.
Now some will argue, “Wait aminute: New York only raised taxes on the rich. Why not adopt GovernorCuomo’s package for New Jersey?”
Here are the facts. If weenacted the exact same income tax rates put into law by New York last month,every person earning below $100,000 a year would face a tax increase – ofanywhere from 150 to 200%. And, by the way, those earning a milliondollars would get a tax cut. Is that what we want? Is thatfairness?
I don’t think so. An across theboard tax cut is fair – every New Jersey taxpayer will benefit. Every NewJerseyan’s rates will go down. Every New Jerseyan will see relief.
This is exactly what I was talkingabout when I took office; that the tough choices would lead to the right ones.
Today, because we have put our fiscalhouse in order we can budget for our priorities and give tax relief to all ofour people. Tax relief that will lead to better lives for our citizensand more jobs for our state.
Job number two is to reform oureducation system – to strengthen our schools.
Over the course of the last year,since outlining my proposals from this podium, I have worked with thislegislature – on a bipartisan basis – to put in front of you apackage of bills that will address the biggest challenges facing publiceducation in New Jersey. We have had a year to debate, discuss anddeliberate.
Now, in 2012, it is time to act.
New Jersey, in so many ways, isblessed. The majority of our schoolchildren continue to perform well,above most other states, on national student assessment tests. New Jerseyhas so many great teachers producing so many great students.
Too many in the educationalestablishment, however, use that very real success as a camouflage for abjectfailure elsewhere in New Jersey. To use the success of others as anexcuse to block change for those we are failing is not only wrong, it is immoral. Too many of our schools are failing our children, and they have been failingfor far too long.
We live in a time when educationalattainment and economic success are correlated as never before. That is agood thing. It means that for this generation of Americans, what you canachieve will be driven not by who you know, but by what you know.
You need to look only at the recentHarvard/Columbia study of 2.5 million students over 20 years in America. Its independent research supports what I told you from my heart, from thispodium, one year ago.
Great teachers have a more significantimpact on their student’s future success than average ones. Evenmore importantly, average teachers have an even greater effect on theirstudents when they replace underperforming teachers. Research thatconfirms our own common sense.
Tenure reform will lead to evengreater student achievement because replacing underperforming teachers witheven an average teacher raises each classroom’s lifetime earnings by overa quarter of a million dollars. Let’s act on real tenure reformnow. Let’s replace despair with hope in every classroom in NewJersey.
Because I believe it is obscene to besatisfied. When the chance for a life filled with hope and opportunity isdetermined not by how hard you are willing to work but by where you happen tolive. Not by your intelligence, but by your zip code.
Let’s face it: more money doesnot necessarily lead to a better education. Today, in Newark, we spend $23,000per student for instruction and services. But only 23% of ninth graderswho enter high school this year will receive high school diplomas in fouryears. Asbury Park is similar: per pupil costs, at almost $30,000 a year,are nearly 75% above the state average. But the dropout rate is almost 10times the state average. And math S.A.T. scores lag the state average by180 points.
It is time to admit that the SupremeCourt’s grand experiment with New Jersey children is a failure. 63%of state aid over the years has gone to the Abbott Districts and the schoolsare still predominantly failing.
What we’ve been doingisn’t working for children in failing districts, it is unfair to theother 557 school districts and to our state’s taxpayers, who spend moreper pupil than almost any state in America.
Basic human decency and simple commonsense say it is time for a different and better approach.
The tools to give our children andtheir parents who are confronted with failing schools the chance for a betteroutcome are before you.
They are embodied in bills which arebipartisan in nature and consistent with the reform advocated by PresidentObama, Education Secretary Duncan and most recently by New York State GovernorAndrew Cuomo.
My proposals reflect the input theadministration has received at hundreds of meetings with educators, parents andprofessionals around the state. They are supported by independentresearch done at Harvard and Columbia.
Most importantly, they reflect theintention we should all have: to put children first.
The momentum to put children firstbegan last week when you passed, and I traveled to Camden to sign, the UrbanHope Act. This new law will allow school districts in Newark, Camden and Trenton to partner with experts in the private sector to build and operaterenaissance schools in these districts so in need of change.
We have given some of our urbanschools a signal that hope is on the way. I want to thank Senator Donald Norcross and Mayor Dana Redd for their bi-partisan support of this idea. You and I both know that this is a good start, but only a start. There is much more work to do.
Here is what I propose:
• First,reform tenure – by measuring teacher effectiveness, both withprofessional observation, and objective, quantifiable measures of studentachievement – and then by giving tenure to those with strong evaluations,and taking it away from those whose ratings are unacceptably weak. Wecannot ask parents to accept failure in teachers when their children’slives hang in the balance;
• Second,if layoffs are necessary remove the least effective teachers instead of justthe most junior ones. It is time to end the system of “last in,first out,” which protects some of the worst and penalizes some of thebest;
• Third,pay teachers more when they are assigned to a failing school or to teach adifficult subject. Compensation should be designed to attract and retaineffective teachers where we need them most;
• Fourth,end forced placements. Teachers should not be assigned to schools withoutthe mutual consent of the teacher and the principal. If an acceptableplacement can’t be found in 12 months, the school district should havethe right to place the teacher on permanent unpaid leave;
• Fifth,we should reform our process for authorizing charter schools to attract thebest operators to New Jersey, to streamline the process for the bestperformers, to focus on our failing school districts and to encourageinnovation. We must give parents and children in failing schools analternative; and
• Last,and perhaps most importantly, establish tax credits to provide scholarships forlow income students in the worst-performing schools in the state to enable themto attend a better school, either out of the district or a privateschool. Opportunity should not be offered to only those in an excellentschool district or with parents who have the money to release their childrenfrom the prison that is a failing school. Let’s pass theopportunity scholarship act now.
These are not radical reforms; they arecommon sense. They are not rash; they are long overdue. And theyare not luxuries which can afford to languish for another six months or anotheryear; they are essential for New Jersey’s success.
I have a message that is not from me,but from the single mom in Newark, and the struggling parents in Camden, aswell as the employers in our state: education reform has waited long enough.
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New Jersey is one of America’smost diverse states.
This means we have diverse problems,but also diverse opportunities. It means we must build the skills andimprove the opportunities for many types of people, from all backgrounds andall walks of life. And it means we must work in multiple ways to improvethe quality of life for everyone.
Creating jobs and fixing the schoolsare probably the two most important ways to do that, but there are other stepswe can take as well to improve the quality of life in New Jersey.
This leads me to job numberthree. We need to reclaim our inner cities, respond to underservedregions, and engage our most vulnerable citizens.
A few months ago, I hosted a town hallmeeting in Union City with Senator Brian Stack. A woman from Newark was there.A mother. A neighbor. A concerned citizen.
That day, she asked me a very direct question– and actually, I believe it was a question for all of us.
She said, “I just wonder if theamount of violence, the amount of shootings, the amount of murders that takeplace in the City of Newark. I just wonder sometimes if it bothers you like itbothers us. Particularly the mothers who have lost their children.”
And she ended her question with aplea. ‘Help us,’ she said, ‘Help us.’ Well, that womanwas Cassandra Dock. And I met with her and her neighbors. She is here in thischamber today.
I ask all of you to send a messagethat in New Jersey we are creating a place where everyone is given theopportunity to live the life they want. I ask all of you to join me in sayingto Cassandra. Yes, we will help you.
Here is one example: we can only improveour quality of life by keeping the most violent criminals off the streets. So,I ask you to approve my bail reform package, which would mirror the federalsystem. It would keep offenders with a history of violence who are a danger toour communities in jail until the time of their trial, instead of releasingthem into society to prey on the public.
This may require a constitutionalamendment but it is reform that is long overdue. Do you know that if aperson is arrested with a long record of violence we cannot detain that personin jail pending trial? We must release that person, regardless of howdangerous they are to potential witnesses against them or innocent members ofour society. Let us amend our bail laws to allow judges to consider the factorof dangerousness to our communities before we release a violent person back onto the street to maim or kill while they await trial. This, too, is justsimple common sense.
At the same time, let us reclaim thelives of those drug offenders who have not committed a violent crime. Byinvesting time and money in drug treatment – in an in-house, securefacility – rather than putting them in prison.
Experience has shown that treating non-violentdrug offenders is two-thirds less expensive than housing them in prison. And more importantly – as long as they have not violently victimizedsociety – everyone deserves a second chance, because no life isdisposable.
I am not satisfied to have this asmerely a pilot project; I am calling for a transformation of the way we dealwith drug abuse and incarceration in every corner of New Jersey.
So today I ask this Legislature andthe Chief Justice to join me in this commitment that no life is disposable.
I propose mandatory treatment forevery non-violent offender with a drug abuse problem in New Jersey, not just aselect few. It will send a clear message to those who have fallen victimto the disease of drug abuse – we want to help you, not throw youaway. We will require you to get treatment. Your life has value. Every one of God’s creations can be redeemed. Everyone deserves asecond chance.
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These are the big things I’dlike us to focus on in 2012. These are my priorities.
We know in our hearts that werepresent some of the toughest, the most direct and honest people inAmerica. A group of people who are destined for great things if we justgive them the opportunity. But we also know that for too many years thesesame people were depressed about what New Jersey had become.
Our leaders disappointed us in manydifferent ways. Promises were made that weren’t even attempted tobe kept.
Our economy suffocated under the wetblanket of overtaxation, overspending, overborrowing and overregulation.
Our education systems failed those whoneeded it the most, and our leaders stood by and said, “be patient, andwe’ll fix it.” In popular culture, New Jersey had become apunch line, rather than a place of pride.
What’s happened in the last twoyears?
Over the last two years, New Jersey isnow seen around the country once again, not exclusively as the butt of latenight jokes, but as a focus of the evening news and the Sunday talk shows. Why?Because, once again, we are leading America – by taking on the big thingsin public policy.
We’ve known all along that ourState is destined for great things. We just needed to give the people ofour State the confidence that can come from watching leaders work together andfrom a state rising again all around them.
To everyone in this room, to everyonewatching in their home or listening in their car, I have one simplemessage: for the New Jersey Comeback to continue and grow, we must allcome together.
This obligation is not just mine and itis not just Kim’s. It is not just Steve’s or Sheila’s,not just Tom’s or Jon’s. The New Jersey Comeback is not aboutwhat happens in Trenton alone. All of you are in this too. Our winsand losses are your wins and losses. Our successes and failures are yoursuccesses and failures. The New Jersey Comeback didn’t start justhere and it won’t be sustained just here. The New Jersey Comebackis yours, too.
And so I say to all of you, regardlessof where you are, regardless of what region of our State you come from,regardless of what political party you call home, you have had a stake in whathas happened over the last two years, and you have contributed to making ithappen.
Now is not the time to stop, now isthe time to double down. Now is not the time to put the brakes on NewJersey’s growth. Now it is the time to put the foot down harder onthe accelerator. Now is not the time to turn back. Now is the time tomake New Jersey greatness a reality again.
That is what the next two years of mygovernorship will be dedicated to every day. We have climbed out of thehole that was left to us – together. Now it is time to raise thegreat flag of the State of New Jersey as high as we can – together.
I cannot do it alone. Republicans cannot do it alone. Democrats cannot do it alone.
Because, as Martin Luther King oncesaid, “We may have come on different ships, but we’re in the sameboat now.”
We must do this together in everytown, every city and every county across our state. If you are ready tojoin that fight with me in the next two years as you have in the last twoyears, we will be here two years from now looking at a state that once again isa leader for a rejuvenated America.
If you are willing to join that fight,so am I – on your behalf. That is what you elected me to do. And that is the solemn commitment I make to you again today.
Thank you, God bless you, God blessAmerica and God bless the great State of New Jersey.
