Governor John Engler
1991 State of the State Address - Monday, February 11, 1991
Lieutenant Governor Binsfeld, Speaker Dodak, Senator Posthumus, Members of the Senate
and House, Fellow Constitutional Officers, distinguished guests, and fellow citizens:
I come today to speak with you about principles, values, and a vision for the state of
Michigan. I propose a blueprint for action, to keep a promise: To restore and renew the
greatness of our state.
At the outset, however, let me speak for each and every resident of Michigan: All of us
are enormously proud, and deeply grateful, for the noble service of our Michigan men and
women, and all their fellow Americans in uniform, now serving in the Persian Gulf.
As President Bush eloquently said, "We are the only nation on this earth that
could assemble the forces of peace." How true that is. God bless our great country.
The daily struggles and sacrifices of Operation Desert Storm help us keep in
perspective our own difficulties here at home. Surely, our ability to overcome challenges
-- any challenges -- need not be in doubt.
And now, in Michigan, we must demonstrate that ability once again -- because, fellow
citizens, our state is at a crossroads.
Through the 1980's, our national economy experienced a record-breaking peacetime
expansion. It should have been a time for all states to set themselves on a firm, low-tax,
pro-growth foundation. Some did; Many did not. Ours did not.
Year after year, even though our population has not grown at all, government spending
in Michigan has grown relentlessly. And, in spite of greater and greater amounts of taxes
paid by the working citizens of our state, government has persistently failed to live
within its means.
I pledge to the people of Michigan: The 1990's will mark the end of this disastrous
cycle.
Strong medicine is required. As we chart a new course for Michigan, we must first
recognize that the hand of government reaches all too far into the pockets of the people.
We must not be satisfied with the status quo.
Yes, our jobs in this Capitol building would be much easier if taxes remained high. But
how can we justify the burden now resting on the working people of Michigan? How can we
justify property taxes that are the 4th highest in the entire nation? They have imposed an
enormous cost on this state in the form of lost jobs, lost businesses, and lost
population.
My friends, there is only one proper course. We in government must return to the
discipline of controlled revenues. We must cut taxes, now.
Ladies and gentlemen of the legislature, as you know, I have proposed a comprehensive
property tax cut plan. I believe this tax cut is desperately needed to stimulate our
economy and to restore confidence in state government.
As I travel through Michigan, I hear the call for lower taxes resonating in every
corner of the state. The people are demanding action, and I believe they deserve it --
because they are right. The very real fact is that Michigan will never have a competitive
edge as long as our taxes are higher than those in our neighbor states.
Simply put: Without this tax cut, Michigan will lose more jobs. And this is
unacceptable.
That's why I am proposing this job creation tax cut. Those who support this tax cut are
voting to create jobs in Michigan.
Those who oppose it are voting:
* to send jobs to other states,
* to put our people out of work,
* and to force thousands more of our fellow citizens either to leave Michigan
in search of opportunity, or to remain here, dependent upon the state.
In my estimation, the legacy of this Legislature will be determined by its handling of
this important issue. No clearer test of our commitment to building Michigan's future will
present itself, than how we resolve the question of whether Michigan will restore its
competitive stance by cutting taxes and creating jobs.
Now, I realize that there are some who say the tax plan we have presented is
"unfair." But in my view, those critics who use the term "fairness"
really mean other things. When they say some people should get a bigger percentage tax cut
than others, they really mean they want to redistribute income from some people to others.
To those talking about fairness, let us ask: What is fair about a tax policy that drives
job providers and jobs out of Michigan?
You explain to the thousands of people in Michigan without jobs -- and the thousands
who have left this state because they can't find jobs --
* that unemployment is more fair than tax cuts.
* that keeping people out of work, instead of passing an across the board tax cut, is
somehow an equitable and fair approach to the problems of Michigan.
Ladies and gentlemen, that logic has undercut our economy in the past, and we must
never allow it to burden us again.
That is why I support an across the board, twenty percent school property tax cut for
everyone. And it is why I believe that if we are serious about creating jobs in Michigan,
this legislature will support my program.
Strong medicine is also required to bring the state budget back into line. This
administration has proposed a budget that will enable us to change course with fairness
and common sense. It is a budget that reflects a principle that must guide us from this
point forward: A government that is too large to live within its means is a government
that is too large, period.
An honest look at the expenditures of our state yields but one conclusion: Our
taxpayers are not getting their money's worth. For too many programs, the rates of growth
far outdistance the rates of success. Fiscal responsibility requires that we institute
broad, permanent and structural cuts in spending. Just as importantly, common sense
requires that we change some approaches and priorities completely.
Budget tightening must, of course, be fair. That means we, the leaders of the state,
should agree to cuts that affect us, too. The Governor's Office has already taken concrete
measures along these lines.
* My staff is 40% smaller than that of my predecessor.
* And we have cut the payroll in half.
In this respect, you in the Legislature deserve to be complimented as well for
rejecting the pay raise. That was a powerful statement in support of fiscal
responsibility. You did the right thing.
Still, more can be done. Every one of us knows the abuses that have characterized
"Personal Service Contracts" in the recent past. Over the past four years,
contracts totaling nearly two billion dollars have been approved.
I hold in my hands the fine-print register of "Personal Service Contracts"
for just one year. It adds up to over 500 million dollars. This unbelievable roster of
projects is an incubator for abuse. My friends, enough is enough.
So, tomorrow, I will be issuing a Governor's Directive requiring Department Directors
to identify all contracts with their departments and to justify their continuance. If they
aren't justified, they will be canceled. Our first priority will be those contracts for
public relations, promotions, and polling -- because government should not be in the
business of promoting itself.
Reform inside the government will be incomplete without reform in politics as well. As
for Officeholder Expense Funds, I propose that we eliminate them. As for Political Action
Committees, let us lead America and abolish them now.
Our prescription for Michigan's fiscal crisis does include one absolute spending
priority. For as we build our future, we must focus on one precious resource: our
children. My budget will fulfill another pledge to our citizens: to put education back at
the top of the agenda, where it belongs.
It won't be done with dollars alone; we have to set goals. Goals like the ones set by
President Bush and the nation's Governors: That every child enters school ready to learn
-- and that those schools be drug free and violence free. Goals like the ones I have
stressed from the very beginning: parental choice, competition and financial equity.
And the most important goal of all: Excellence in every school. In return for all we
spend, we will expect better performance from students and teachers, and better value from
our schools. I have spoke about statewide choice as one component of a comprehensive
education quality and finance reform package we must have to make our schools the best in
the nation.
This spring, I will present my strategy to the legislature. But Mr. Speaker, former
colleagues and friends: Let us resolve today that this generation of Michigan's children
will be the best educated in our state's history.
And let us also resolve that when they graduate, they will have jobs -- good jobs,
secure jobs, -- right here at home.
Furthering economic growth is never easy, and creating jobs is an enormous task. But it
is made much easier by some of the natural advantages we enjoy. We have magnificent
resources; our people are strong and determined. And -- perhaps most importantly -- we
know what works. There is no substitute for loosening the grip of unnecessary and costly
regulation on industries and entrepreneurs. And there is no substitute for simple hard
work, and competing aggressively in the marketplace, including the international
marketplace.
Indeed, increasing exports holds immense promise for our people. Every billion dollars
in exports creates 30,000 new jobs. This fact alone tells us we must be more aggressive in
promoting Michigan and Michigan products abroad. This will be a primary mission of a
restructured Commerce Department working with the private sector.
I will establish private sector bilateral trade teams, which, under the coordination of
the Michigan Export Development Authority, will be Michigan's marketers and ambassadors to
the world.
No state in America is blessed with our ethnic and cultural diversity. It is time we
tapped the genius and entrepreneurial spirit of these citizens to promote and sell
Michigan to our sister nations around the globe: Our Polish, Hungarian, and other proud
East European Americans to Eastern Europe, Arab and Jewish Americans in the Middle East,
Asian Americans in Asia and the Pacific, Hispanic Americans in Mexico and Central America,
African Americans to the continent of Africa. The global marketplace of the 1990's will
wait for no one. So let us broadcast to the world that Michigan is back in the game -- and
we're in the game to win!
In my Inaugural Address just six weeks ago, I spoke of a need to renew many things: The
spirit of enterprise, confidence in public officials, the proper role of government and
the full empowerment of people. But I also stressed that to "restore Michigan's full
promise", we must also "restore that most central of all characteristics of
human achievement: The need for individuals to commit themselves to improving their own
lives and communities."
Everything that is special about Michigan is special not because of what the government
has done. It's what the people have done. Communities coming together and neighbor helping
neighbor through the good times and the tough times.
It wasn't long ago in our state that when a neighbor's barn burned down, the community
would pull together and lend a helping hand. They didn't wait for blueprints from the
state capitol to rebuild the barn or for a check from the government to pay for it. They
got together and rebuilt it themselves. Because it was the right thing to do.
Now I know we all wish there was more money in our budget to pay for some government
programs on which we've come to depend, but history has shown that we must never depend on
government to do what we can do for ourselves.
I believe the people can improve Michigan more than government can. And the Governor
can provide leadership to help communities identify local needs and help inspire the
commitment of our citizens to lend a helping hand to each other -- without bigger
government and higher taxes. In order to do this, I am announcing today the creation of a
new statewide initiative to be called "Helping Hands for Michigan."
The goal of Helping Hands for Michigan will be for government to work with volunteer
organizations and local communities throughout our state to identify which cultural,
educational and social programs need assistance or funding.
Perhaps it's a clean-up project, a Main Street facelift, a book drive for the local
library, a literacy project, an art reach center, a food bank walk, or starting a
community benevolent fund for needy children. Whatever the project, it will be the
community that will identify the leadership, develop the plan, encourage local
participation in a "helping hands day," and raise the funds locally to meet the
needs.
To make sure this program is accorded the highest possible priority, Michigan's First
Lady, my wife, Michelle, will chair Helping Hands for Michigan. As Governor, I will also
take an active role by lending my helping hand to our communities and their needs.
Helping Hands won't solve all of our problems, I know that.
But I believe it can rekindle the flame of cooperation and pride and self help that
made Michigan great and can make her great again.
There are many other important priorities that must have our attention this year. I
will address them in detail in future messages to the Legislature. But let there be no
doubt that we will move boldly forward on all fronts.
In closing, let me state how proud and honored I am to return to this beautifully
restored chamber in which I began my career in public service. My years here have filled
me with a tremendous respect for this institution and the men and women who work here.
Our history together gives me confidence that we will be able to work together side by
side. And we have to begin today.
In spite of all the challenges that confront us, we should never forget all of the
things that make Michigan great. And we should never forget the resilience, the optimism,
and the indomitable spirit of the people of Michigan. As I have said many times: I know
the people of this state, and I believe in them. Failure is simply not in their nature.
And if you and I -- together -- hear their voices and answer their call, we will never
fail in Michigan. Thank you and God Bless you.
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