Monday, September 10, 2001

Thank you, Bill (McCormick) for that wonderful introduction.

I am pleased to be here on the eve of the election here in Detroit. Tomorrow, voters choose a new mayor and city council.

Therefore, it is both appropriate and timely for me to announce the following endorsements . . . just kidding.

Seriously, while I’m not going to endorse anyone today, I urge every Detroit and Dearborn resident to participate and to vote – both in the primary tomorrow and in the general election November 6^th.  I especially urge voters in the 12^th State Senate district to vote tomorrow.

Voting is vital because leadership matters – not just here in Detroit but throughout the state.

I compliment Mayor Archer for his many accomplishments. But it is no secret that many challenges are waiting for the next mayor and council.  I will be working with Mayor Archer through the last day of his term and will be there to work with the next mayor on the first day of his term.

To the next mayor – I offer one of working together. I am confident we can accomplish a great deal.

One particular area we must continue to work together on is education – making sure that no child is left behind.  In this regard, I want to highlight the fact that despite the economic slowdown and declining state revenues, we continue to increase education spending. For Detroit schools, for example, the foundation grant per student is climbing from $6584 last year to $6841 this year. As a result, even though enrollment in Detroit’s public schools is down by more than 5,000 students, total funding from the state is virtually unchanged. In fact, Michigan will invest nearly $1.2 billion in Detroit’s children this year.

The job of Detroit Schools CEO Ken Burnley and his team is to keep the focus on achieving a better results for the investment.  That’s where leadership can make a difference for our children.

Certainly, leadership matters at the national level as well. I commend President Bush for his hard work to change the tone in Washington, despite the fact that some can’t get the old melody out of their heads.

Just as there is much work to do in Detroit, there is much to do in Washington. I strongly support President Bush’s plan to cut taxes. It seems common sense to me that we should be cutting taxes when the federal tax burden is at an all time high. When debt as a percentage of the budget is at an all time low, the focus ought to be on cutting taxes.

Cutting taxes has been the right strategy for Michigan. . . and it is the right strategy for America.

Still, there are those who believe lowing the national debt is the highest priority. Let me remind them that at least $2 trillion will be paid down over the next decade. That lowers interest rates and helps families buy new cars and new homes.

As a state that prides itself in building things – like cars and furniture – we know that lower interest rates and higher consumer confidence means our families are better off and our state and nation are better off.

While President Kennedy and President Ronald Reagan each passed major tax cuts early in their administrations, President Bush does them one step better – his major tax cut also provides major debt reduction.

Despite the president’s early successes, many challenges remain – education and energy policy, social security reform, and defense and trade policy.  Speaking for the National Governors Association, governors in both parties are ready to help build Congressional majorities on these tough issues. Governors are eager to engage in these vital discussions about our nation’s future. We governors like the new tone and cooperative attitude in Washington.

We also like the president’s promise to return power and authority back from Washington to the states. A good start is reflected in proposals to reform and streamline both Medicaid and the State Children’s Health Insurance Program.  By giving more flexibility to states as they administer these programs, more people – especially children – can get covered by health insurance.

Even before these plans are fully implemented, Tommy Thompson, Secretary of the Department of Health and Human Services and my former colleague as governor of Wisconsin, has been busy. He has already approved waivers that have resulted in an expansion of coverage to more than 800,000 lower-income Americans.

Another example is the success of welfare reform. Just last month, we reached the five-year milestone since Congress enacted a landmark reform plan supported by the nation’s governors.

Nationwide, the results have been nothing short of amazing. Since August 1996, the U.S. welfare caseload has fallen from 12.2 million recipients to 5.8 million – the largest decline in history and the lowest percentage of the population on welfare since 1965.

At the same time, the number of families and children living in poverty declined dramatically to the lowest level in more than two decades. And our results are even better in Michigan – with even higher percentages of families getting off welfare and lower percentages living in poverty.

Next year, Congress must reauthorize welfare reform and the many programs that serve our nation’s families – from food stamps to childcare. The National Governors Association will be very active in this process, supporting reforms that help our states implement innovative strategies to strengthen families.

I have no doubt that if the federal government stays out of the way, state governments will continue to be up to the challenge.

Having read David McCollough’s new biography of John Adams this summer, I am reminded that the tension between states and the federal government has existed since the earliest days of our history.  What is striking, however, is that back in Adams’ day, there seemed to be a clear understanding of what the fight was about. There wasn’t a presumption by the media that all power and ideas should reside with the federal government.

Our Constitution – which Adams greatly influenced – vests limited, enumerated powers in the federal government, reserving all other powers to the people and to the states.

While the Constitution remains the same, what is different today is the interpretation. And understanding our history offers a clue as to why some in Washington – including Michigan’s two senators and many members of their political party – are opposed to judicial nominees who might remember and adhere to the intent of the framers of the Constitution.

Part of our commitment to federalism must be reflected in the appointment of judges who will respect the constitution and the rights and powers vested in the people and their respective states.

With his nominations of Judge Jeffrey Collins and Prosecutor Margaret-Mary Chiara to serve as Michigan’s U.S. attorneys, the President has already shown his commitment to quality. Moreover, I think that winning the election carries with it the right to fill vacancies.

It is clear to me that when President Bush, in the next few days, appoints four leading citizens from Michigan to the U.S. Court of Appeals, a fight is brewing and Michigan will be thrust into the center of the storm.

Our senators have privately told the White House that they expect President Bush to nominate two of their candidates for the Court of Appeals if he is to get any of his own.

I publicly call on President Bush to reject this so-called deal offered by these senators and to exercise his constitutional authority by nominating the four best men and women – the four he has already identified.

I call on Senator Levin and Senator Stabenow to quit playing politics with our Constitution and stop playing games with the lives of these distinguished judicial candidates.

In addition to fighting for fairness in the judiciary, it is vitally important that there be fairness in the regulatory process.  Shortly, the President will issue an Executive Order on Federalism, and I expect this document will be greeted by attacks from those who seek to centralize power in Washington.

Again, on behalf of America’s governors, I can report to you that we do not believe the problem is that Washington has too little power. Quite the opposite – Washington, and those who work there, have continually sought to expand their reach into the lives and activities of average Americans.

The purpose of this executive order – which is much like Michigan’s Headlee Amendment – is to bar the federal government from transferring the costs of unfunded federal mandates to state and local government.

As several recent Supreme Court decisions have highlighted, there are also areas that simply do not warrant federal involvement. In these cases, this federalism executive order will serve as an effective check on overzealous federal regulators.

One final point on federalism. I believe that resolution of the issue of use tax collection is of utmost importance.  It is patently unfair that brick and mortar retailers in Michigan must collect sales tax but many Internet-based out-of-state remote sellers avoid collecting the use tax on the same goods.

Failure to resolve this issue could mean the ultimate destruction of federalism. Because this choking off of states’ ability to fund ourselves will be accompanied by a loss of independence.

Let me close with some positive news.

I am pleased to announce today that a national survey conducted by Brown University has rated Michigan.gov as the number two state web page in the nation.

This high rating reflects the high quality of the more than 70 online services that Michigan.gov offers – including vehicle registration, the purchase of hunting and fishing licenses, campground reservations and a business look-up service.

I should note that we moved up from last year’s 14^th place ranking and are aiming squarely at number one.

This is important because one of my goals over the next 16 months is to continue Michigan’s march forward to the cutting edge of technology. Because I strongly believe that technology can help government better meet the needs of customers and constituents.

For example, technology can transform education and open the doors to learning. Consider our laptops for teachers program – this year, more than 90,000 Michigan teachers will be able to use their new laptops to reach parents and teach their students.

In the public sector, technology empowers people by helping them access government information and services.

An informed public, armed with information, can be a powerful force for change. And that’s why I am so committed to making Michigan a technology leader. And that’s one more reason I am so optimistic about Michigan’s future.

Thank you very much.