To my colleagues on both sides of the aisle, thank you for re-electing me to serve as the Speaker of this great institution. It is a great honor and a responsibility that I humbly accept. I will strive to serve with integrity, diligence and fairness.
To all our new members, welcome to the Michigan House of Representatives. Serving in the Legislature is an honor and a privilege. It will be one of the most fulfilling and rewarding experiences of your life.
I would also like to welcome all the family members, friends and guests who have joined us today. On behalf of all the members, thank you for the sacrifices you have made and will make to allow each of us to serve in the 95th Legislature.
We are serving in the most challenging economic climate since the Great Depression.
The state budget is structurally imbalanced. We have over $20 billion in unfunded liabilities for public employee retirement health care alone. Automakers, once the backbone of our economy, are under siege. Small businesses are fighting to keep their doors open. Our residents are losing their jobs and health care, and are confronting a record number of foreclosures. And, for those who still have their homes, their values are declining and their retirement accounts have likely lost a third of their value in the past six months.
All this, at a time when jobs are difficult to find and revenues to the state are shrinking while the demands upon it are growing.
These are not just words in a speech. These are my neighbors in Redford, yours in Jackson, Saginaw, Grand Rapids, Alpena and Marquette. Last year alone, over 113,000 people lost their jobs, over 1 million had no health insurance and over 120,000 homes were foreclosed.
Last year, my son came home to tell me that his best friend in the neighborhood was moving because his parents sold their house to the bank. I remember thinking about the stress and anxiety this child's parents went through in the process of losing their home. Today, that is one of three homes on that street sitting vacant.
We can't fix all these problems, but shame on us if we don't do what we can.
With so many new members, and the returning members having served for only two or four years, we have a unique opportunity to change politics in Michigan and reinvent our state. We must be the agents of change. The status quo will not cut it in these unprecedented times. We must use every tool at our disposal to reform our slow moving, slogging form of government. State government must become more efficient and responsive to the needs of our residents.
For too long, we have nibbled at the edges of change and, in the meantime, allowed tens of thousands of kids to get a less-than-mediocre education that will forever deny them access to the American Dream; we have been complicit in allowing the tax system to stifle economic growth; and we have stood by while predators have preyed on vulnerable citizens, their homes and their savings accounts.
We have delayed reforming how the Legislature and government operate, and instead have just cut spending to the point where the state struggles to deliver essential services to those in need.
The world is moving faster today than it was just 10 years ago. The private sector has been forced to be more productive and efficient and to do more with less. Government is not immune and cannot operate as it has in the past.
If we can't run government more like a business, then we have no business running government.
Likewise, we in the Legislature need to be better, faster and smarter. We are confronting unprecedented challenges and we don't have the luxury to operate the way our predecessors did.
We cannot accept the attitude I have witnessed during my tenure that things will get done according to government's timeline. While we delay, jobs are being lost; too many kids spend another year in failing schools; foster children go unsupervised; and homes are foreclosed.
Michigan residents are hurting, and we must lead by example and share in their sacrifice.
That is why we must, once again, send the Senate the plan to cut our own pay and end
free lifetime health care benefits for legislators after just six years of service. I ask the Senate to join this
chamber on these measures. If we are going to ask others to sacrifice, we must lead by example.
The biggest challenge we are confronting is the economy and the lack of good-paying jobs. Our tax system is too complicated and stifles economic growth. Property taxes are too high and can rise even while values are dropping. We must act aggressively to improve our business tax, repeal the surcharge, and cut property taxes to help create an environment of job retention and creation.
However, meaningful tax reform can only come through a ballot initiative so we can address constitutional provisions that prevent us from legislating comprehensive reform. For this reason, I ask the Senate and the Governor to join us in crafting a job-creating, comprehensive tax reform measure that we can put before the voters.
This Chamber cannot act alone, so for the sake of our state, I ask the Senate and the Governor to act with us, and act now.
Second, we need to improve access to quality and affordable health care. We must focus on reforms that reduce costs, increase access, and make health care more affordable for our residents and businesses alike.
The centerpiece of these reforms should be a statewide catastrophic health care plan. Too many families are one serious illness away from bankruptcy and too many small businesses cannot afford to provide coverage for their employees. The statewide catastrophic plan should include coverage for preventative care so we avoid the most expensive form of treatment, which is waiting until a crisis hits and treating it in the emergency room.
If Michigan takes the lead in creating a health care system that works, instead of waiting for someone else to solve the problem, we will attract new businesses and retain those being lured away. Last session, progress was made, but we must finish our work and send this legislation to the Senate before summer break.
Two years ago, we confronted a budget crisis much like we have today. We are facing a deficit for the current year of $350 million and revenues are projected to fall $1.5 billion next year.
We must not repeat the mistakes of the past where budgets were not passed until the 11th hour. In these uncertain times, it is imperative that our communities, schools and universities know their budgets as early as possible.
To avoid a similar outcome, I challenge the Senate and the Governor to work with us to have a budget compromise in hand before our summer break.
This is no time for political games or 11th hour panic. The stakes are too high. The people deserve better.
Our budgets must reflect our values and ensure Michigan stands ready to compete in the 21st Century.
We must live within our means while at the same time protecting education, investing in job creation and worker training, assuring access to health care for our most vulnerable citizens, and maintaining police and fire protection for our communities.
Research shows that the new economy thrives in areas that provide access to a quality education, skilled workforce, first-class infrastructure, and a great quality of life. These values must be reflected in our legislative priorities.
I would be remiss if I failed to acknowledge some of our accomplishments. In my first term, we passed the 21st Century Jobs plan that is beginning to bare fruit.
Just this week, GM announced a major initiative to build batteries for their new electric vehicle, the Volt, in Michigan. A major partner in this project is A123 Systems, an awardee under the 21st Century Jobs program. A123 is planning to build the nation's first commercial-scale battery plant in Michigan.
The Michigan Economic Development Corporation estimates that as many as 50,000 jobs can be created in the next five years in this sector of our economy.
These new jobs won't come all at once.
I know what it's like to try to save companies that are on the brink of going under. Sometimes you succeed, sometimes you fail. But now, for the first time, our state can be a real partner in creating jobs. For the first time, our state has the tools to bring Michigan back.
Last session, great work was done in areas such as energy policy and protecting our Great Lakes, and the foundation was laid on reforms dealing with failing schools; foreclosure prevention; predatory lending; correction reforms; smoke-free work places; and tackling the huge unfunded liability associated with public employee retiree health care, among others. I want to thank the returning members for their work on these issues. I challenge all of us to finish our work on these priorities this year.
While there is no question that we have been through difficult times the past six years, the future can be bright.
We lead the nation in research and development. We have great universities; a skilled workforce; robust agriculture and tourism industries; and are well-positioned to be the leaders in alternative energy, life sciences, the film industry, homeland security, defense and advanced manufacturing.
However, the time to act is now. Every day we wait we make it harder to take advantage of the talent and resources we have in this state.
While we may never end the partisanship that has divided this Capitol in the past, we can focus our energies in areas where we share common ground.
I am confident most, if not all of us, can agree we want Michigan to offer its residents: a growing economy with plenty of good-paying jobs; access to a world-class education; quality and affordable health care; safe streets; good roads; and clean air and water.
The public is rightfully fed up with finger-pointing and partisan bickering. They don't care if we are Republicans or Democrats, or if the blame lies in the House, Senate or Executive Branch. They expect us to make the tough decisions, just like they are making at home and in the corporate boardroom throughout the state. They sent us here to do a job, and it is incumbent upon us, as their employees, to do it.
The challenges and opportunities in front of us are huge. Let's take them head on.
Some of the things that need to get done may not be popular. But the days when government had the luxury to put off to tomorrow what could be done today are gone.
The people are demanding that we reform government so that it is more efficient, productive and responsive to their needs. Let's not let them down.
I, along with my Democratic colleagues, look forward to working with Leader Elsenheimer and the Republican Caucus to tackle the challenges that lay before us. Representative Elsenheimer has informed me that he would like to work on school equity funding, to secure a stable funding source for Travel Michigan, and move toward greater transparency in government by getting our budgets online. I look forward to working on each of these initiatives with you this Session.
Even though the challenges before us are great, I am confident that Michigan will emerge and succeed in the 21st century economy. We have the technology, skilled workforce and work ethic necessary to overcome the challenges that lay before us.
This is our chance to meet the challenges that lie ahead. This is our moment. This is our time – to put our people back to work and to open the doors of opportunity for all. And, for those that tell us we can't, I will quote the President-elect: Yes We Can.
May God bless this Chamber as we embark on what will surely be an historic session of this Legislature.
Thank you.