Governor John Engler
1994 State of the State Address - Tuesday, January 18, 1994
Lt. Governor Binsfeld, Senate Leader Posthumus, Speakers Hillegonds and Hertel, members
of the judiciary, colleagues in government, and Michigan families:
Tonight, let me begin by saying thank you -- thank you to the men and women of this
legislature who have worked together to solve problems that have plagued Michigan for a
generation -- problems some said could never be solved.
Together, we have faced no greater challenge and achieved no greater victory for
Michigan families.
The skeptics said: "Mission Impossible." We said: "Our kids deserve
better!"
This evening, I applaud you: "Congratulations on a job well done!"
Our record of reform last year was truly historic -- the best in this century: charter
schools, school finance reform, auto insurance reform, medical liability reform, teacher
tenure reform, welfare reform.
In 1993, the battle to cut high property taxes finally ended -- and the taxpayers won!
You'll know it when the bank cuts your monthly payment. You'll know it when your tax
bill arrives this summer.
I said we would cut property taxes, and cut them we did!
Yes, the men and women in this chamber tonight can be very proud of the accomplishments
of 1993. It was a year of historic change, change for the better!
Michigan's largest city also made historic change last year. One era ended. A new era
has begun.
Mayor Dennis Archer -- welcome and congratulations!
Mayor, I reach out my hand out in friendship and cooperation to you and to the people
of Detroit.
We all know that change won't happen overnight. But if we work together, it will
happen. And before long, the Motor City will be America's comeback city!
My friends, we begin this new year filled with excitement and hope because of the great
things we have accomplished for families.
Like Vicki Lawson and her family.
Vicki's up at 3 am every day, drives 35 miles in to work at her donut shop on Lansing's
west side.
She works till 6 at night -- making the donuts, keeping the store spotless, helping
customers.
Vicki's business is a family affair. Her husband, two sons and a daughter work there.
Four grandkids help out as well.
As Vicki says, "We try harder, we don't give up. We have to work hard because
nothing was given to us."
She is constantly amazed by the fact that she can mix flour and sugar and make a living
for herself and her family. But more importantly, that flour and sugar, combined with
Vicki's determination and hard work, helps to make a living for the 30 people who work in
her store.
And now, because of her hard work, business is booming, and she's getting ready to open
a new donut shop.
One day Vicki said to me: "You can't please everybody. You just have to do what's
right."
Well, in my book, what's right for Vicki and her family is right for Michigan.
Because I know when I'm on their side, I'm on your side!
The Four Cornerstones
There is nothing more important to the quality of our lives than the strength of our
families.
That's why my goal is to do all I can to strengthen families. To build a strong
foundation upon which our families can grow and prosper.
Like the typical family home, our foundation has four cornerstones:
First, good jobs so families can support themselves and achieve their dreams.
Second, great schools so our children can learn the skills they need to work and
succeed in the 21st century.
Third, safe homes, neighborhoods, and schools, so our families and our children can be
free from crime and the fear of violence.
And fourth, a better quality of life, so every family can have quality health care and
live in a clean environment.
For three years, we've been taking bold action to set these cornerstones firmly in
place. Our challenge is to continue building upon this solid foundation.
Tonight, it is my privilege to discuss that challenge and the changes I recommend for
the coming year.
The First Cornerstone -- More Jobs
Consider this fact: 4,350,000 people are working in Michigan today -- more men and
women on payrolls than ever before in our history.
More than 125,000 new jobs were created last year alone. And since August of 1991, more
than 300,000 jobs have been created.
Good jobs. Good-paying jobs. And note this well: In the last four months, 26,000
manufacturing jobs have been added to Michigan payrolls.
The statistics are clear: Michigan is leading the national recovery.
Michigan's unemployment rate last year was 7 percent -- the lowest in 15 years.
Compared to the national average, our unemployment rate was the best it's been since
1966, when I was in high school and Michigan State was ranked number one.
For the American auto industry, 1994 should be the best year in a decade -- vaulting
the U.S. to number one in the world in auto production.
When I visited the auto show, it was obvious that our high quality, innovative and
stylish cars and trucks are the envy of the world.
We take a back seat to no one.
The American auto industry is back.
Detroit is back.
My friends, Michigan is back!
And you know what? The rest of America is learning that Michigan has changed, that
Michigan is a great place to do business, and that Michigan is on the right track.
U.S. News & World Report rated Michigan's economic recovery as the best among the
nation's large industrial states.
The reason? Tax cuts. U.S. News reported that while other states raised taxes, Michigan
did not. In fact, we have cut taxes six times in the last three years.
We cut taxes on small business -- not just once -- but twice.
We cut inheritance taxes.
We cut unemployment taxes.
We froze property taxes, and then we cut them nearly $7 billion, the biggest tax cut in
history.
With all this good news, with all that we have accomplished, with all the tough
decisions we have made, and with your continued help, there will be no stopping us in
1994.
Only one cloud lingers on the horizon. On March 15th, voters will go to the polls to
choose between raising the state sales tax or the state income tax.
It is, quite frankly, a stark choice between setting Michigan back or moving Michigan
forward.
As you might expect, I have an opinion on this question.
Make no mistake -- the ballot plan, the sales tax, is the right plan.
Look at the major benefits of a "yes" vote on March 15:
A cut in school property taxes for most homeowners by more than 80 percent.
A cut in school property taxes for most job providers by 33 percent.
And a cut in income taxes for every taxpayer.
Constitutionally guaranteed caps on assessments.
Constitutionally guaranteed limits on property tax millages.
Constitutionally guaranteed full funding for public schools.
This is one ballot proposal where the more voters know, the more voters will like it.
Yes, the ballot plan relies on the sales tax.
Yes, to increase the sales tax and lock in these Constitutional guarantees, the people
must vote on this.
Yes, I think it's fair.
After all, when Michigan citizens travel to Chicago, visit New York, or vacation in
Canada, we pay sales taxes that are 8 percent and higher to support their schools and
services. I think it's time that when folks from those places come here, they pay their
fair share to support our schools.
And at 6 percent, our sales tax would still be below the average for the Great Lakes
and right on the average for the nation.
So let me say it again: The ballot plan is the right plan.
It's better for job providers.
Better for homeowners.
Better for families.
On March 15th, a "yes" vote is better for Michigan!
As for the alternative, I think that a 30% increase in the state income tax would be a
disaster.
If you doubt that fact, consider this fact: At 6 percent, our income tax would be the
highest flat rate tax in the nation -- a tax on hard-earned wages paid 100 percent by
Michigan workers.
To make matters even worse, the backup plan increases business taxes on every Michigan
job provider -- large and small.
There's no question that the backup plan is the wrong plan for Michigan.
The backup plan has no guarantees. And with the backup plan, that's exactly where your
taxes will go -- back up.
If you vote "no" or you don't vote, your property taxes will go back up, your
business taxes will go back up, your income taxes will go back up -- way up. And
unfortunately, Michigan's unemployment rate will probably go back up.
The bottom line?
A "yes" vote on the ballot plan means a net tax cut of $1.1 billion this
year.
A "yes" vote means guaranteed savings every year in the future.
A "yes" vote means victory for Michigan families.
Another great victory for families has been the success of our reforms to break the
cycle of dependency called welfare.
Listen to the story of Betty Houston -- a mother of six from Muskegon. Her family had
been on ADC for 20 years.
Because of our reform efforts, she enrolled in a job training program, earned a nurse's
aide certificate and got a job in a nursing home. Mrs. Houston plans to stay in school and
become a registered nurse. She's also a motivational speaker at her local DSS office to
inspire other welfare clients to follow her example.
She's even been featured in a British television documentary about welfare reform. As
she puts it, "I've come a long ways, and that makes me want to do more for myself, my
family and for other people."
Because of the success of Betty Houston's family and thousands of families all across
the state, Michigan's plan to strengthen families is being recognized around the country
as a model for the nation.
Our plan to reform welfare is working!
We are keeping more families together.
We are dramatically increasing the number of adoptions, especially for African American
children and older kids with special needs.
And we have an impressive two out of every three people on welfare participating in our
Social Contract by working, going to school or volunteering in the community.
By removing the barriers to work and increasing the incentives to work, one out of four
ADC recipients -- more than 50,000 parents -- are working today. That's three times higher
than the national average, and that's the best in America.
To further strengthen Michigan families and to build on our state's record of national
leadership in welfare reform, tonight I propose several new initiatives.
The key to these initiatives is work. Because for parents trying to break the cycle of
welfare dependency, the first day on the job brings them one day closer to independence.
Work can no longer be a concept, it must be a reality!
First, we will improve the successful Social Contract by making participation
mandatory. In plain English: If you're going to get a check, you're going to go to work.
So, for those who choose not to participate, for those who choose not to take
responsibility for their own lives, the taxpayers will no longer pick up all the tab.
The result? The end of welfare as we know it. And it's about time!
Second, we're going to make work pay even more. We will seek new federal waivers giving
us more flexibility to encourage and reward work.
My third initiative builds upon efforts already under way in the Michigan Legislature
to toughen our state's child support laws and improve the functioning of Friend of the
Court offices.
Being a parent is serious business. It's time to get serious about demanding that all
parents shoulder their fair share of the responsibility. No longer will a 16-year-old boy
be able to father a child and walk away from his responsibility.
We will seek to identify every father and expect him to support the child he helped
create -- for eighteen years.
If they don't, school-age fathers won't be on the football team, or any sports team for
that matter. They won't be scoring touchdowns or shooting baskets. They will be working
after school or volunteering in the community.
Our policy is simple, tough and to the point: If you don't pay, you don't play.
Our policy for older dads is just as straightforward: If you don't work and can't pay,
you volunteer and make a difference. If the state is putting families first, it's not too
much to ask fathers of all ages to put their families first.
In early February, I will discuss these initiatives and other innovative welfare
reforms in a speech to the National Press Club.
One thing is clear: Our Michigan experience is showing the nation that welfare reform
cannot wait and that welfare reform can work, because it is working in Michigan!
The Second Cornerstone -- Great Schools
The second cornerstone of our foundation for strong families is providing a quality
education for every Michigan child.
Thanks to your actions last year, Michigan children will benefit from historic reforms
of our schools and the way we pay for them.
We invested in our kids with:
The biggest improvement in equity in a generation.
An additional $230 million for teaching at-risk children.
And we nearly doubled spending for pre-school programs.
These actions will help every kid move to the head of the class!
On the reform side, we made even greater strides:
An extra hour a day in school for every child.
Tough, world-class performance standards.
Cost containment through greater financial accountability, with more to come this year.
Detailed information to parents through a building-by-building school report.
And greater local control. Let me repeat that: greater local control. Even though state
government is paying a bigger share of the school bill, we're sending a bigger measure of
control back to parents on the local level. Because I trust parents, not Washington or
Lansing, to do what's best for their children.
School boards won't have to spend all their time being millage committees. Instead, I
expect they will become quality committees, working with parents and teachers to make
every school better.
Because when we put quality first, our children will be the best!
But the most important breakthrough last year was the passage of the nation's most
far-reaching charter school legislation.
I thank each and every one of you who voted for this measure, and especially the
sponsors, Representative Bill Bryant and Senator Dick Posthumus.
With charter schools, I predict nothing less than a renaissance of public education in
Michigan.
By the end of the century, I believe Michigan schools will be the envy of the world.
Charter schools will unlock the creativity and excitement for learning that is too
often crushed by mountains of bureaucratic regulations and paperwork in our public
schools.
Charter schools could be started by groups of teachers, or by a school district, by a
community college or university.
Existing public schools could become charter schools with the approval of parents and
teachers.
To help parents, teachers or concerned citizens learn how to start these schools, I
will establish by executive order a Charter School Center. And we will hold a statewide
charter schools conference late next month.
The possibilities are limitless.
Today -- right now -- every public school can take the first steps to create a charter
school that could admit students who live outside their district. This can create many new
choices for parents and students.
For example, a school with a couple of hundred empty seats could create a charter
school within its own walls -- and fill those seats with excited and interested kids who
choose that school because they want to learn.
That means charter schools will be a powerful force for competition and change.
Charter schools will make all public schools better -- the best in the world -- because
our kids deserve the best.
But remember this: I still favor legislation to give every parent the right to send
their kids to the public school of their choice. This legislation should be passed and
sent to my desk without delay.
The Third Cornerstone -- Safety
The third cornerstone of our foundation for strong families is safety -- safe streets,
safe schools, and safe neighborhoods.
All across the nation, Americans are concerned about crime. And even though crime rates
have fallen, fear is on the rise.
Here in Michigan for example, in 1992, the number of violent crimes like murder and
robbery fell 7.7%.
But those improving numbers are small comfort to families like the Urbins, whose two
daughters -- Melissa and Michelle -- were brutally murdered by paroled rapist Leslie Allen
Williams.
I'll never forget my meeting with Pat and Kathy Urbin. The loss of a child is a tragedy
that no family should ever have to live through.
Their strength and courage was so amazing, the power of their family was so incredible
-- they wanted to make sure that the deaths of Melissa and Michelle could save other
children.
Because of their tragedy, we reformed Michigan's parole system. As Kathy Urbin said:
"It won't bring our daughters back, but it will help other families."
I believe it has. Now tonight, I am making other recommendations to build upon the
steps we've already taken.
For example, Michigan is on the verge of completing the biggest prison buildup in the
country -- 22 new prisons.
I make no apologies. People who break the law ought to be behind bars.
In the past three years alone, we've opened 6 prisons and 2 prison camps. These newest
facilities now house nearly 5,000 inmates -- criminals who are off our streets and away
from our kids.
In addition, one more facility -- the Mound prison in Detroit -- will have a capacity
of more than 1000 felons when it opens this spring.
Making two prisoners live in each cell has also added more than 6500 beds to our prison
capacity, while saving taxpayers nearly $700 million in both operating and construction
costs of new prisons.
I make no apologies for this -- if our kids can double-bunk in college, convicted
criminals can double-bunk in prison.
We've implemented strict, mandatory sentences and put on the books the nation's
toughest anti-stalking laws and the most comprehensive victim's rights legislation
anywhere in America.
It's time we put the rights of victims before the rights of criminals.
Still, there is more we can do to help protect Michigan families.
My budget proposal, presented in December, funds three new state police trooper
schools. This action puts more than 270 new troopers out patrolling our streets and
highways -- more troopers on patrol than ever before.
Law enforcement professionals know well that much of our crime problem -- especially
violent crime -- is caused by repeat offenders.
We need to take these thugs, punks, and career criminals off our streets -- for good.
We can start with the more than 28,000 outstanding felony warrants. More than half of
those are in Wayne County.
I am directing the Michigan State Police to undertake with the Detroit Police
Department and other law enforcement agencies a sweep to arrest these offenders.
These fugitives are charged with serious crimes, and we ought to round'em up and
lock'em up.
To keep violent, dangerous and habitual criminals locked up and off our streets, I
propose the following initiatives.
First, for all future offenders, we will abolish parole.
Michigan needs truth-in-sentencing. The whole truth.
Judges will be required to hand down specific sentences. No more sentences of one to
ten years, or two to fifteen years, with offenders back in the community in just a few
months.
With this new system, five years means five years, ten means ten. No exceptions. The
criminal, the community and the victim will know what the sentence is and when it ends.
It's been said before and I'll say it again: If you do the crime, you'll do the time!
Second, there's no excuse for giving violent offenders time off for good behavior. For
violent offenders entering our prison system, the good times are over!
Third, a new Sentencing Commission will determine sentencing guidelines to make sure
the punishment fits the crime.
And fourth, we will work in partnership with Michigan's local governments to maximize
use of prison and jail facilities.
These changes will send a clear message to criminals that their punishment will be
swift, certain and severe.
Ladies and gentleman -- these initiatives represent significant change and I ask for
your cooperation in enacting the total package promptly.
Finally, an area of particular concern is the rising tide of serious juvenile crime and
violence. Too many kids are committing crime and too many kids are the victims of crime.
The Rev. Jesse Jackson recently described youth violence as "the premier issue of
the civil rights movement today."
In Detroit last year, for example, two dozen children under the age of 16 were shot and
killed.
We must act together to stop young offenders from turning the corner to a life of
crime. Here's what we can do to help:
Nearly two years ago, I proposed the creation of "gun-free school zones,"
including stiff penalties for those caught with illegal weapons within 1000 feet of a
school.
And in my October message on school reform, I urged you to pass legislation allowing
for the immediate expulsion of students who are caught with guns or drugs in school.
I commend Representative Al Kukuk and Senator Joel Gougeon for sponsoring this
much-needed measure to protect our children.
Our kids must be safe in school.
This legislation can help.
It's time to pass it now!
Soon, I will unveil a comprehensive plan to improve Michigan's juvenile justice system.
These reforms will include earlier intervention, a more certain response, and stronger
accountability.
We need to make sure that all kids who are at-risk of slipping through the cracks and
into a life of crime get the early intervention and prevention they need to turn their
lives around.
This is critical because police, prosecutors, and prisons can only do so much. When
they get involved, it's usually too late.
When it comes to our children, an ounce of prevention now is worth a pound of
punishment later.
I recall vividly Mayor Dennis Archer's Inaugural Address. He brought the audience to
their feet when he told them: "Get a grip on your families! And then, get a grip on
your kids!"
That's good advice for all Michigan families -- to reach out to young people living on
the edge -- to teach respect for life and for the rights of others, to give them a moral
compass and a purpose for living.
Our children are our future, but with violence, our children have no future.
The Fourth Cornerstone -- Quality of Life
The fourth cornerstone of our foundation for strong families is a high quality of life.
A top concern that affects the quality of life for every family is health care.
Parents of young children can tell you how often they need to see a doctor or buy
medicine.
Seniors can share with you their fears of being wiped out financially by a major
illness.
Employers can tell you how the high and rising cost of health care coverage is hurting
their ability to compete and create new jobs.
As Washington begins to debate national reform of our health care system, Michigan has
already taken major steps in the right direction.
A few examples:
We reformed the medical liability system to improve access and cut costs. We reduced
the practice of defensive medicine. And we have strengthened disciplinary measures to
improve the quality of care.
We are implementing the Healthy Kids Program, providing health insurance to more than
90,000 Michigan children who are currently without coverage.
And Michigan's children are also benefitting from the nation's best free vaccination
program.
Michigan women now have more than 50 locations where they can get either free or low
cost breast and cervical cancer screening and follow-up services.
Since the spring of 1992, nearly 10,000 women have benefitted from this program and
many lives have been saved.
For leading Michigan's fight against breast cancer, I want to thank Michigan's Public
Health Director, Vern Davis-Anthony.
And I would also like to thank someone who is very special to me -- my wife Michelle.
Their message is an important one: One in eight Michigan women is at risk of breast
cancer. If you are over forty, call 1-800-922 MAMM to find out where you can get screened.
You owe it to yourself, and you owe it to your family.
Just as we cannot have a high quality of life without healthy families, we cannot have
healthy families without a clean environment.
Michigan is special for so many reasons. Our Great Lakes, cherry blossoms, trout
streams and trusty fishing holes, centennial farms, forests, and quiet places far from the
city.
It's also our neighborhoods, the city park down the block, the trees planted along your
street and neatly groomed front lawns. And a system of state parks that's second to none
in the nation.
That's the magic of Michigan, and we must do all we can to make sure that every family
has a chance to experience it.
This year marks the 75th anniversary of Michigan's state park system. And I think we
should celebrate that and at the same time, prepare for the future.
I propose that we set aside $40 million from the sale of the state Accident Fund to
create a state parks endowment fund.
This endowment will be a first step in providing a stable, permanent source of support
for the maintenance and improvement of Michigan's state parks.
Next, we will create a $20 million endowment fund to support the Civilian Conservation
Corps so that we can give kids a chance to learn job skills while working to improve and
protect our parks, forests and streams.
I commend Representatives Tom Mathieu and Tom Alley for their effort in sponsoring this
important legislation.
Finally, I am recommending that we create a state park in Detroit. Our ideas to make
this dream possible are only limited by our imagination and our willingness to work
together.
As 1994 begins, the state of Michigan's natural resources is good, very good -- our
air, land and water are cleaner than they've been in a generation.
You don't have to take my word for it, listen and look at our wildlife:
The first trumpeter swans hatched in more than a century.
Peregrine falcons actually nesting in downtown Detroit.
More and more Kirtland warblers, bluebirds, and bald eagles making Michigan home.
Statistics tell the story, too: more toxic sites cleaned up, air pollution cut by
almost 30% in the past five years.
In fact, our air is so clean, we've asked the Environmental Protection Agency to rule
that Southeast Michigan is in compliance with all clean air regulations.
When approved, Detroit will become the largest city ever to win such redesignation.
What does this mean to the entire region -- to Wayne, Oakland and Macomb counties?
It means a green light for new manufacturing. A green light for new business growth.
And a green light for new jobs.
Keeping State Government On the Right Track
Those are the four cornerstones -- good jobs, quality schools, safe homes, and a
healthy, clean environment.
Government can't be effective in improving those cornerstones if it's own house doesn't
stand on solid ground.
When I took office three years ago, Michigan's financial house was on the verge of
collapse.
Chronic overspending had created a $1.8 billion deficit. So like any family trying to
make ends meet in tough times, we had to tighten our belts, cut wasteful spending and put
our house in order.
We reduced the state workforce by more than 8 percent.
We cut the budget and got spending under control. Since 1990, while inflation was a
total of 12 percent, state general fund spending grew by less than one percent.
Without our dramatic action, spending would have been 40 percent higher today -- nearly
$3 billion more. The tough choices we made saved the average family nearly $1000 a year in
taxes.
I'm proud we solved our budget problems without gimmicks and without raising taxes.
As a result, we transformed a $1.8 billion deficit into a surplus.
That's right. Tonight, I am proud to announce that when we close last year's books,
Michigan will have a surplus well in excess of a quarter of a billion dollars.
This surplus will be deposited in Michigan's Rainy Day Fund to begin replenishing our
savings.
Our task now is to take every action possible to ensure that Michigan never again faces
a financial emergency like the budget mes
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