Governor John Engler
1992 State of the State Address - January 21, 1992
Lt. Governor Binsfeld, Speaker Dodak, Senator Posthumus, Mr. Chief Justice Cavanagh,
members of the Senate, House, and Judiciary, fellow Constitutional Officers, members of
Congress, distinguished guests, and fellow citizens:
Good Evening. As I begin tonight, I would like to recognize a very special person --
Chief Judge of Michigan's Court of Appeals, Bob Danhof.
Bob is retiring next month after more than two decades of distinguished service on the
bench.
His impressive career contains many highlights -- U.S. Attorney, Con-Con delegate,
Governor's Legal Advisor and Judge. And thirty years ago, he had the distinction of being
the first opponent of America's -- then youngest -- Attorney General -- Frank Kelley.
Congratulations, Judge Danhof, on a lifetime of outstanding public service!
1991 was a year for the history books. The forces of change swept the globe, crumbling
the old order, at a breathtaking pace.
Today, as we look back on the past year, we can be sure of one thing.
What seemed certain -- is now changing.
What seemed impossible -- is now fact.
Just one year ago, who would have believed that today, the "evil empire," the
Soviet Union, would no longer exist?
Just one year ago, who would have believed that all American hostages held in Lebanon
would be home for the holidays?
My friends, join me in welcoming back to America and to Michigan -- Mr. Alann Steen.
Ladies and Gentlemen, tonight, I report to you and to the people of Michigan on the
state of our state.
Michigan is a state of change -- historic change -- on course for a great future.
One year ago, I said that Michigan stood at a crossroads.
Business as usual or change and reform.
We boldly set course on a path of change.
Now, we must continue to advance on that same path and not retreat down the path of
failure.
We need only look to the past decade to understand the staggering cost of the failure
to change.
Michigan pursued a liberal -- big government -- tax and spend approach -- $150 billion
worth during the 1980's.
But where did that lead us?
To higher taxes on our families, lower test scores for our kids, greater dependence for
our neediest, and fewer jobs for our workers.
Fortunately, in 1991, Michigan began to change.
We took the first steps toward achieving the Taxpayer's Agenda of lower taxes, more
jobs, better schools and less dependence.
I said we would balance the budget without raising taxes -- and we did.
I said we would increase funding for our schools and make education our highest
priority -- and we did.
I said we would downsize state government -- and we did.
I said we would keep our promises -- and we did.
As a result, Michigan became the only state in America to eliminate a massive budget
deficit, increase funding for schools, and hold the line on taxes.
My friends, that is change -- for the better.
In 1992, change will continue.
I know people want change.
I've visited with you in hundreds of towns and townships in 83 counties across this
great state.
And more than 400 of you came through my "Open Doors," sat down, shared a cup
of coffee, and talked.
I heard what you had to say. I understand you're worried, even scared, about the
economy and America's future in an increasingly competitive and unfair world. You're
concerned about the future of your family.
And so am I.
During the past year, I listened to a single mother, juggling part-time jobs, who's
worried that she might not be able to feed her kids and pay the bills.
I listened to a factory worker who's worried about whether his job will still be around
next year.
I listened to senior citizens who want to stay in their homes but feel helpless as
increasing property taxes and rising medical costs consume their limited incomes.
I listened to a mother of three, in a Salvation Army shelter in Detroit, who's worried
about finding a job and a home for her children.
These people are real, and so are their feelings. They, and so many more, told me: Yes,
Governor, it is time for change. Something has to be done! Working people, on the job
every day, living check to check, sending their kids to school, paying their taxes, trying
to keep up and hoping to get ahead.
They want change!
People who aren't working. People who can't read. People without adequate housing.
People who are hurting. They want change, too.
In fact, they stand to gain the most from change.
The change needed to rebuild our neighborhoods and restore our families.
The change needed to improve our schools and prepare our kids.
The change needed to cut taxes and create jobs.
Just after Christmas, I received a letter from Garry Aernouts-, who lives in
Grandville. His words expressed what's at stake and what so many people feel.
"...my family and I are faced with a struggle for our continued survival," he
wrote. "As an autoworker, things look rather bleak...One thing Americans have always
held on to, in bad times, was a hope for a better tomorrow. I do not sense we as a people
feel that way anymore. We desperately need a government on our side...Please help us
continue to be able to pursue the American dream...your decisions in the days ahead will
either help or they will not. Please help. Your choices are imperative to my family, and
many other families' very survival."
Garry, I am on your side.
Your fight is my fight.
And this is one fight we are going to win!
Tonight, I offer a plan of action to create jobs and opportunity for our people.
My plan puts Michigan first, gets Michigan moving, and sends Michigan back to work.
Ladies and Gentlemen, MICHIGAN NEEDS JOBS. NOW!
The cornerstone of my strategy is a job creation tax cut. Our cut and cap plan means a
thirty percent across the board cut in school property taxes and a three percent cap on
annual assessment increases.
When I signed the first Cut and Cap petition at the State Fair last August, some
doubted we would reach our goal.
But next Monday, I will proudly deliver petitions signed by more than 400,000 Michigan
taxpayers to Secretary of State Richard Austin.
Cut and Cap will be on the ballot!
This is your chance to cut taxes, create jobs and get Michigan moving.
When implemented, Cut and Cap will provide a $6.5 billion boost to Michigan's economy.
That's a lotta nickels -- 130 billion to be exact.
Cut and Cap means money in your pockets to buy new cars and new homes, money to save,
and money to invest in new plants, new equipment and new jobs.
Cut and Cap sends a powerful message to job providers -- large and small
-- here, and across the nation, that Michigan wants their business and their jobs.
My friends, let this message be heard by all -- Michigan is open and ready for
business!
While Cut and Cap is our strategy for long term growth, many Michigan workers need help
today.
Two targeted short term initiatives that I am recommending will help.
First, we know that the longer men and women are out of the work force, the harder it
is for them to get back into the work force.
Therefore, I propose that employers receive a $1000 tax credit for each worker they
hire who has been unemployed for at least 6 months.
Second, I will propose an increase in the number of smaller enterprises eligible for
relief under the Single Business Tax.
We must not forget that the women and men who own Michigan's thousands of small
businesses hire more people than any other sector of the economy.
We must do all we can to keep their doors open and keep Michigan working.
Another way to get people working this spring is to begin repairing and rebuilding our
battered roads and bridges.
Take it from somebody who's driven over just about every bumpy back road and bridge in
the state -- there is work to be done.
Our Congressional delegation understands the urgent need not just to build Michigan but
to create jobs, and I thank them for fighting hard to assure Michigan's fair share of
federal transportation dollars -- more than three billion dollars worth.
And I can say with confidence to the people of our great state -- Michigan will get
every single dollar Washington owes us!
By cutting costs and leveraging current resources, we will get the job done.
In fact, our efforts this past year have already yielded millions in savings -- worth
more than a penny a gallon.
In the coming weeks, I will unveil a comprehensive strategy to rebuild and expand
Michigan's vital state and local transportation network.
This strategy -- called Build Michigan -- is not a plan to raise the gas tax.
Build Michigan is a plan to create thousands of jobs and build the necessary
infrastructure for Michigan's future.
Some have said it's easy to raise the gas tax, but with so many Michigan families
already struggling to make ends meet -- now is not the time.
Highways, roads and bridges aren't the only things that need to be rebuilt. Michigan's
hard hit inner cities also cry out for help.
I endorse legislation that builds upon the tax savings from our Cut and Cap initiative
to allow for additional tax incentives to revitalize Detroit and other urban centers.
By creating neighborhood, commercial and industrial enterprise zones, we will stimulate
new business growth, job creation, and the development of affordable housing.
Increasing Michigan exports will also create jobs and boost Michigan's economy.
For 1992, our Department of Commerce has set forth an aggressive strategy of expanding
export opportunities, promoting tourism, and supporting cultural and educational
exchanges.
We will pay special attention to rural Michigan as we assist our agriculture industry
increase exports.
It is time to stop exporting our jobs and wages to other countries.
It is time to start exporting more Michigan products and services to the world.
So far this evening, I have talked in detail about my plan to create jobs and
turbocharge our economy.
I can summarize the importance of my strategy --
Michigan's challenge -- in two words: WILLOW RUN!
Sure, GM faces a tough decision. Will they make cars in Willow Run or in Arlington,
Texas? Employers make choices like this every day.
In fact, in the past decade, Michigan has lost the equivalent of one hundred Willow
Runs.
Today, we also have a choice to make.
If our answer is business as usual.
If our answer is costs that don't go down and poor schools that don't get better.
If our answer is tax shifts and tax hikes.
It's a done deal.
Our jobs will take a hike -- to Texas.
I fight for what I believe in.
I believe these jobs belong in Michigan.
And I will fight to keep them here -- each and every one!
Recently, I heard one of our car dealers on the radio urging customers to buy American
cars. That made me wonder how many did.
Well, I checked -- out of the 5.4 million cars and trucks registered in Michigan in the
last ten years, one out of every four was made outside the U.S.A.
Think of it. Detroit -- Michigan -- the home of America's auto industry is also home to
more than one million, three hundred and thirty thousand foreign made cars.
Just think of the tens of thousands of jobs we could have had -- making those cars.
Those jobs don't depend on the President, the Congress, the Governor or the
Legislature.
They depend on YOU -- to BUY AMERICAN!
The best thing you can do to put Michigan back to work is to put a "Made in
Michigan" car in your garage!
Michelle and I are proud to drive an Oldsmobile made by the men and women working the
line at the Orion plant.
And I'm sick and tired of hearing that American products don't have the quality to
compete with Japan.
Tonight, I've got a message for the Japanese Speaker of the House of Representatives:
Our cars are second to none.
Our autoworkers are second to none.
Michigan is second to none.
Something else that has to be second to none is the education of our children.
We can't compete for jobs unless our kids have the skills to fill them.
I would again urge this Legislature to enact the reforms I proposed last September in
the Michigan 2000 strategy to improve our schools.
Ladies and Gentlemen, I am not satisfied with the state of our schools. And I know
you're not, either. That's why initiatives like the Michigan Education Warranty are so
important.
It is time our schools stood behind their students the way we expect our automakers to
stand behind their cars.
As part of my continuing support for schools, including our colleges and universities,
I am pleased to announce the offering of "Michigan College Savings Bonds."
These bonds will be offered directly to the public within the next few months and will
help parents who are saving for their children's college education.
Wealthy parents have always had a wide range of investment choices.
It's about time that middle class parents get the same opportunity to help their
children go to college.
One of our most important education goals is to make sure that Michigan's children
start school ready to learn. That means our kids must be healthy.
But too many of Michigan's children -- and their parents -- are without access to the
medical care they need.
A big part of the problem is skyrocketing liability costs. It's time to stop making
lawyers wealthy and start making people healthy!
In the past year, we launched important initiatives to immunize our children, lower
infant mortality rates and fight breast and cervical cancer.
But, we have much more to do.
Michigan can no longer lead the nation in deaths from preventable chronic disease.
That's why my 1992 health care agenda will continue our focus on prevention and early
intervention -- including programs to discourage smoking and fight drug abuse.
Shortly, I will announce a wide ranging Health Care initiative to limit the costs of
liability, increase access to medical care, promote prevention and help make Michigan
healthy again.
Now, let me turn to a problem that presents our greatest opportunity and our greatest
challenge -- reform of Michigan's social welfare system.
The opportunity is to encourage independence and personal responsibility, restore the
work ethic and the family.
The challenge is to provide for the needs of the most vulnerable -- those challenged by
disabilities and handicaps, and children and families living in poverty.
This year, we will spend over $6 billion to maintain Michigan's extensive safety net of
human services. While that's more money than ever before, my goal is to give people the
opportunity to move off welfare and move into the workplace.
Tonight, I am announcing a statewide expansion of Michigan's nationally recognized
Families First program.
This intensive in-home service has reduced the need for foster care by successfully
keeping at-risk families together.
I will also establish a program to be called "Communities First," designed to
integrate the delivery of state human services at the local level.
Family-centered and community-driven, these pilot projects will cut red tape and
improve services.
Tonight, I would also like to thank Lt. Governor Connie Binsfeld for devoting so much
time and attention to leading our Adoption Commission.
What better way could there be to build strong families than to make adoption an
option.
Breaking the cycle of welfare dependency won't be easy.
The first step is a return to the traditional American social compact founded on the
belief that with rights come responsibilities.
Michigan must move out of the dependency business and into the job creation business
because the best welfare program in the world is a good job.
Healthy citizens need a healthy environment.
As Governor of the Great Lakes State, it is my mission to protect all our natural
resources -- for us and for our children.
As part of this effort, Michigan will lead a major new cooperative venture with other
Great Lakes states to create markets for recycled products.
Michigan's purchasing power will send an important message to the marketplace:
Recycling makes for good business and a cleaner environment.
Protecting our environment and managing our resources remains the dual responsibility
of our Department of Natural Resources.
Last year's long overdue reorganization will make this vital department more open and
accountable to the public, more effective at reducing the backlog and more aggressive in
cleaning up toxic sites.
In 1988, Michigan citizens passed Connie Binsfeld's Quality of Life bond proposal. To
date, the DNR has identified well over three thousand toxic sites.
But do you know how many have been cleaned up? Only forty.
That tells me the time for passing the buck and pointing fingers is over.
It's time to get out of the courts and on with the cleanups.
It's time to work together to preserve and protect our environment.
Tonight, I have talked about change.
My vision of change is founded upon the first principles that built our great state out
of the old Northwest Territory.
Common values of faith and family.
Common goals of educating our children and preparing them for the future.
Common sense to wisely spend no more than what you earn.
I want Michigan to stride boldly into the future with a strength of purpose, commitment
and vision like the pioneers who struggled against the odds and made Michigan their home.
Almost one hundred years ago, one of America's greatest leaders, then Governor Teddy
Roosevelt, stood at the brink of a new century and offered some advice that is still on
the mark today.
"Above all," he said, "let us shrink from no struggle, moral or
physical, within or without the nation, provided we are certain the struggle is justified;
for it is only through struggle, through hard and dangerous endeavor, that we shall
ultimately win the goal of true national greatness."
I look to the future and I see a Michigan of true greatness -- with great schools for
our children and great jobs for our people.
To achieve this vision means Michigan must continue to change.
Sometimes, people fear change, and that's understandable. But in reality, we have
nothing to fear but the failure to change.
We cannot turn back down the path of failure.
We will not turn back.
My friends, the state of the state is ours to change, ours to make, ours to build for a
great future.
I'm ready -- and I ask you to join me.
I love this great state of ours.
And I have hope in the future because I have faith in our people.
Together, we will bring about change.
Together, we will make Michigan First!
Thank you and God bless.
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