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[Muffled sound of crowd talking in background] [Crowd applauses] Male voice: Governor, the podium is yours. Governor Mike Castle: Mr. Speaker,

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Mr. President pro tem, members of the House and Senate, elected officials, members of the Judiciary and Cabinet,

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fellow Delawareans. It is with considerable pleasure that I come before you today for the second time

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in the capacity of Governor of the State of Delaware to fulfill the Constitutional duty imposed on this office.

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Our Constitution requires that the Chief Executive of the State, shall, from time to time, give to the General Assembly information

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of affairs concerning the State, and recommend for consideration such measures as he shall judge expedient. The men who have occupied

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this office had been faithful to that duty. Taken together, the Governors' messages collected in the State Archives present a series

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of snapshots of Delaware over nearly two centuries. A tapestry of life in which government evolves and takes shape,

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and issues fundamental to democracy are debated. They reflect the accomplishments and aspirations of the people

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of the State since the birth of the nation. Today, as we begin the second and concluding session of the one-hundred-thirty-third General Assembly,

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it is worth considering what we have added to those accomplishments, as well as what we hope to do in the months to come.

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As we do so, we should consider an observation made by the statesmen Henry Clay, more than a century and a half ago.

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"Government," Clay said, "is a trust. And the officers of the government are trustees. And both the trust and

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the trustees are created for the benefit of the people." That the people of Delaware have benefited from the bipartisan administration

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of that trust in recent years cannot be questioned. Today, our State enjoys unprecedented prosperity and job growth.

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Our unemployment rate, which reached a record-breaking low of four-and-one-half percent in the past year, is testimony to that.

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Three personal income tax cuts in seven years, which have resulted in a reduction of more than forty percent

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in the personal income tax rate for the average Delaware family provide proof that government has exercised the fiscal restraint

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our taxpayers demand. That fiscal restraint is all the more commendable in light of the unprecedented growth

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in resources available to the state in recent years. Much credit must be given to the co-chairs of the Joint Finance Committee,

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Senator Cook and Representative Carosi and the other members of the Committee for limiting the growth of the base budget

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to what is reasonable and necessary, protecting our taxpayers from unconscionable demands in the future. We have used surplus funds to reduce debt,

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and we have used them as well to make needed repairs to our rural roads, schools and state buildings, which will mean future savings

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for our taxpayers. We have demonstrated a strong commitment to education in Delaware with a substantial infusion

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of new state dollars to the public education system and by requiring higher standards of both teachers and students.

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And we have continued Delaware's tradition of protecting our environment and our citizens from threats to their well-being.

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There is much to be proud of in the accomplishments I have just described. Yet the list of what State government has accomplished is much longer.

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We enjoy the services of thousands of dedicated and hardworking state employees. And our progress must be measured as well in the efforts of those individuals.

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A caseworker helping a troubled teenager, and administrator eliminating red tape in providing services

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to our citizens, or a state trooper saving lives. Together, they assure that the quality of life in Delaware is preserved and protected.

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That concept, quality of life, taken in its broadest sense, embraces all that government does. And whether or not we succeed

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in governing is largely determined by the quality of life in our state. By that measure, it is fair to say that we have succeeded,

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that we have made a difference. At the same time, of course, there is more we can do. And I would like to turn now

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to the positive steps we can take in the coming year. In doing so, however, this caution, it was neither wishing nor good

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intentions that allowed us to cut taxes three times, bring thousands of new jobs to Delaware or provide programs

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that truly benefit our citizens. Thoughtful management, fiscal restraint, bi-partisan cooperation, and a respect for our taxpayers made those things possible.

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The ability of government to meet the demands of its citizens and to assure the continued growth of our economy requires that

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we remember the crushing cost of government that is poorly managed, careless with its resources, or heedless of those who support it.

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I am committed to the tradition of government that has been established in Delaware in recent time. And I'm confident that you,

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as partners in that tradition, share my commitment. [Audience applauses] Two-and-a-half decades ago, a national effort to protect the environment

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was given impetus with these words: "It is our task, in our time and in our generation, to hand down undiminished to those who come after us,

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as was handed down to us by those who went before, the natural wealth and beauty, which is ours." President Kennedy spoke those words in 1961.

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Since then, we have seen vast improvements in the quality of our water. We have afforded protection to land that

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otherwise might have been irreparably harmed. And we have eliminated dangerous pollutants from the air. Delaware has been a leader in cleaning up

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and in protecting the environment. But there are still challenges before us. Most important, perhaps, is to assure the continued protection

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of our coastal zone. Last year, our authority over that sensitive area was challenged and thrust

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into the hands of a federal court. We are fighting to retain that control, but whatever the outcome of the case, all of us must be prepared

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to work together to take immediate steps to assure the continued protection of our natural resources.

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There are fewer obstacles to our efforts to combat the effects of hazardous materials. Last year,

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with your support, the Department of Natural Resources and Environmental Control renewed its commitment

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to protect our environment. That commitment was backed up with a substantial increase in funding and positions within the Department.

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Just last week, we took a step forward when new quarters for many of the scientists, engineers, and technicians in the the Division of Air and Waste Management were dedicated

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near Delaware City. Locating those offices in the midst of some of the most troublesome, hazardous sites in our state,

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as well as near the majority of the state's petrochemical facilities was a practical step and demonstrates the state's commitment to a clean Delaware.

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When you receive my budget in two weeks, you will see that that commitment is continuing and increasing. Together, we can assure that the Department

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is properly staffed to fight illegal dumping that adds to environmental hazards in our state and to clean up existing hazards.

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I will recommend that another million dollars be set aside for Superfund cleanups and that the department be equipped

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with the best available technology to measure pollutants in the ground, in the air, and in the water. And I will make one further recommendation

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to assure that Delaware never be considered as a future storage site for low-level radioactive waste. I will recommend that we join

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the states of Pennsylvania and West Virginia in the Appalachian compact for disposal of those wastes. As I said earlier, the success

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of government depends on the thousands of men and women responsible for its operation. So it is vitally important

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that we have the ability to attract and keep good employees. It was that concern that prompted me last year to create

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the Compensation and Productivity Commission, which recently reported to you on the state of our merit system. Drawing on both the public

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and private sectors, the Commission brought together a talented group of people whose charge was

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to examine the merit system and recommend changes which would make the State a better and more competitive employer.

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Today, I would like to publicly offer my thanks to Mike Castle, the other Mike Castle, Chairman of the Commission,

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and all the other members for their work. Their report describes a system in need of repair and then proposes concrete practical steps

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to accomplish those repairs. It also came to an important conclusion that for the most part, our total compensation package

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is indeed competitive with other governments. To be sure, adjustments are necessary to assure equity within the system, and I will recommend appropriations

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to restore equity where it has been lost. The Commission having done its work, it is for us to turn those recommendations into actions.

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And in the next few months, we will consider measures, both administrative and legislative, needed to assure that we have

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skilled employees in all State agencies and at the same time offer employment opportunities that are both

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challenging and rewarding for each state employee. As we do so, I would like to make two observations.

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The first concerns pay for performance, an approach based on the idea that the best employees should be paid more.

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I believe that with responsibility should come the opportunity to reap greater rewards. And I urge the General Assembly

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to approve changes in our merit system, which will allow us to reward excellence in management because it is a means to better government.

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If the first issue requires a hands-on approach by the Legislature, the second requires hands-off. Too often in the past,

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pay raises for particular groups of state employees have been based on political clout, rather than merit. And the result has been

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a pay system that is unfair to employees who are equally or more deserving, but who have less political influence. At the same time, it has resulted

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in a system of enormous complexity, when we need a merit pay system that is simple to apply, and easy to understand.

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If we are to remedy this, then you and I must agree that our role in the state compensation system is to set standards

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and provide the resources to meet those standards, not to set individual salaries. Soon after I took office,

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I ordered the creation of a series of Cabinet councils to improve communication and coordination among departments with overlapping responsibilities.

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Today, I can report that the members of my Cabinet, men and women of ability, have made the Cabinet councils work

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beyond even my expectations. One of the most exciting initiatives to come out of those meetings addresses an important issue

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confronting Delaware and the nation. Early childhood development. The first five years of life are of special importance

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in a child's development. It is during those years that we have the opportunity to treat many problems, poor health,

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the effects of broken families, poverty, and inadequate education that quickly rob a child of any chance for success and happiness.

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Failing that, society must treat the enduring symptoms: unemployment, illiteracy, and dependence on assistance

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from public and private sources. All of which place substantial long-term demands on our resources. None of which ever really

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restore what has been lost to the individual. As chairman of the National Governors Association Committee on Human Resources, I have given high priority

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to developing programs on the national level that indeed treat the problem. And it is my hope that in the coming year,

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Delaware will take the lead in this matter. I am proposing several steps. First, I will recommend a comprehensive infant

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mortality prevention program and expanded services to high-risk infants, as well as pilot preschool programs for four-year-olds in each county.

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We will also begin an education program in publicly supported daycare facilities and continue our support the Delaware Read Aloud Program,

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which has inspired similar programs in other states. To make sure this effort, which we will call Focus on the First Sixty Months,

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is as effective as possible we will conduct a statewide public information program to make parents aware of potential problems

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and ways they can solve or help them. In a state as caring as ours, there can be no excuse for allowing a child to be robbed

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of all hope even before she learns to write her own name. [Audience applauses] Now I will turn to the most

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pressing matter before us today, and the reason I asked to address you as the session begins. Benjamin Disraeli,

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the great British Prime Minister, said that, "Government was the keystone of human progress." I believe government has

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no responsibility more important to that progress than the responsibility for educating its citizens. Two years ago, Bob Barnett and I served as

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co-chairmen of the Governor's task force on Education for Economic Growth. In the two years since the task force issued its report on Delaware's public schools,

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we have made substantial progress toward many of its recommendations. We took steps to reduce class size. We make kindergarten compulsory.

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We increased academic requirements on a statewide basis. And we implemented a new funding mechanism to give

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school districts an incentive to increase local funding to schools. However, one major area of the report has yet to be addressed as fully

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as I would like it to be. It was goal number three of our report to improve the performance and compensation

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of teachers and school personnel. During the past legislative session, my administration followed the guidance provided

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by the task force and put forward the concept of a teacher career ladder. I should say in passing that the career ladder was

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modeled on one already working in Tennessee, the state where General Motors decided to build its new Saturn plant and

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create many thousands of new jobs. GM made that decision in part because of Tennessee's commitment and approach to public education,

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including the career ladder. The effort to start a career ladder in Delaware's public schools failed for several reasons.

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We spent too much time trying to refine the legislation before introducing it. Leaving too little time for discussion among the many groups

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concerned with education or for debate in the General Assembly. And there were many in the education community who had

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serious reservations about imposing a new system statewide without first testing it. The result was a stalemate

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in which neither taxpayers nor teachers were truly served. The legislation was tabled and action deferred until January 1986.

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Well, January is here and the time to continue our discussion of a career incentive program is here as well.

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But that discussion should reflect the major change that has been occurring on the education landscape across the nation and in Delaware.

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Very simply, the number of college students preparing to become teachers has been declining and long-term demand

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threatens to outstrip supply. Before schools open next year, school districts may have to hire as many as five-hundred new teachers.

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But our state's colleges expect to graduate only two-hundred and forty-five Education majors, less than half of the anticipated demand. Certainly one reason

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fewer college students are looking to teaching as a career is based on salary expectations. And in Delaware, starting

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teacher salaries are below those in surrounding states. Take New Jersey for example. A side-by-side comparison

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by the Delaware State Education Association, you probably saw it in the newspaper this weekend, shows that experienced teachers

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with Master's degrees are paid virtually the same in Delaware and New Jersey. The difference is less than two percent.

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Not so at the starting level. In New Jersey, a starting teacher earns eighteen-thousand-five-hundred dollars, while in Delaware the average salary

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for a starting teacher is only fourteen-thousand-nine-hundred-ten dollars. That's a difference of almost twenty percent. And that is one reason why Delaware is losing the battle when it comes

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to recruiting good teachers. Now I'm sure some would conclude that the recruitment problem shows the State has not made an ample commitment to education.

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That we must pay and pay dearly for solving the teacher shortage problem. But let's look at the facts.

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Today, Delaware ranks eighth in the nation in per pupil spending. Including my budget proposals for fiscal 1987,

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the state will have increased funding for public education by over fifty-seven-million dollars in just three years, an increase of nearly twenty-three percent.

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As part of that, we will have increased Division Three funds, which are spent mostly on teacher salaries, by seventy percent

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and will have done so on a matching basis to encourage local districts to hold referenda and thereby increase the amount of local funds flowing into our schools.

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And it's working. Of the ten school districts which have held referenda, nine have voted to increase

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local school taxes to qualify for the additional state funds. In short, if we have a problem recruiting teachers in Delaware,

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it is not from a lack of commitment of resources from our taxpayers. Rather, it is because we, as elected officials,

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are not making the tough decisions about how to spend education dollars that will allow us to attract the best teachers

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for our children and improve the quality of their education. And let me widen the circle. It also raises questions

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about how committed those in leadership positions and the education community are to finding the best ways to enhance

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education with the resources that are already provided. Time and again, we are told by those who take America's pulse that the public

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is more than willing to support the dedication of new funds to education, but only if they see an improvement in the quality

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of the end product. The challenge is clear. We must target our resources and demand that they

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be spent in areas which will produce results. And we must challenge the leaders of our educational community to find better and more efficient ways

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to handle the resources presently in the system. So I am asking you today as the session begins to give

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immediate consideration to a series of steps intended to address the problem before it can erode the quality of education in Delaware.

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It is my hope that when you and I leave here at the end of January, we will have taken the first steps in preventing a crisis in our schools.

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If we fail to act, it will be a crisis that confronts us. The first part of this program I am recommending to you concerns recruitment,

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providing the school districts with the means to attract new teachers. I am recommending that the General Assembly approve in January,

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the two-hundred-and-eighty-five dollar pay increase for teachers, which was left on the table last June. I am further recommending a minimum additional increase

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of one-thousand dollars per teacher in fiscal 1987 and changes in the payscale to give up to two-thousand additional dollars

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to starting teachers. And I will recommend appropriation of the third year of Division Three funds more than five-million dollars

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most of which historically has gone for salaries. Together, these measures, combined with

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a local share of teachers' salaries, will allow each of our school districts to compete in attracting skilled young professionals.

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[Audience applauses] To attract more young people to teaching, I will propose creation of teacher scholarship loans for the top

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fifty graduating high school seniors who major in Education at Delaware colleges. The loans, up to one-thousand dollars a year for four years, would be forgiven

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at the rate of one-thousand dollars for each year of teaching at a Delaware school. To bring more teachers to Delaware, I have directed

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the Delaware Development Office to work with the school districts to help them develop a comprehensive

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marketing plan so that we can compete with states as far away as California, Florida, and Texas, states which already

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have successful national teacher recruiting programs. In recent weeks, my education advisor, Helen Foss,

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has been in almost constant contact with the many groups concerned about education in Delaware. And out of those conversations

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has come a theme. The second part of this education-- [Clicking noise] Female voice: District director, Claire Winter, who suggests people avoid travelling this Monday and Tuesday. [Clicking noise] Governor Mike Castle: --to improve the system.

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For instance, the Department of Public Instruction has developed a training and evaluation program to improve

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student achievement by increasing the effectiveness of teaching. And this revitalization effort deserves our support.

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By the fall of 1987, the program will allow administrators in our schools to draw on new evaluation techniques

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and teachers will have been exposed to methods that research has shown make for effective schools. By revitalization too, I mean development

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of a strong and comprehensive staff in-service program to be developed after studying existing programs and making

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whatever changes are necessary to help our teachers improve their skills. Finally, the rewards aspect of this program. I recognize that valid

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opposition to any incentive program will continue as long as there are concerns about funding and the evaluation process. But I am committed to finding

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ways to offer incentives for good teaching and to assuring that Delaware school districts are able to attract good teachers.

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So I will propose a pilot program to be developed in the next fiscal year and implemented during fiscal 1988.

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It involves a single district developing an incentive program to reward teachers who've shown special talent in teaching children.

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Using DPI evaluation instruments, this program will include teachers in its development and will offer an incentive pay plan

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to reward outstanding teacher skills. I am happy to announce today that Mike Walls, Superintendent of the Christina School District,

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with the approval of his Board, and the support of the leadership of the district's Teachers Association, has already agreed to participate

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in this pilot program. If it is proof that is required to make a teacher incentive program a reality

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in Delaware, then this pilot program in our largest school district is designed to provide a fair test of the system.

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If it is a new approach that is required, then this program is the means to that new approach. Mike reflects the concerns of parents

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in that district for higher standards in the classroom. He shares my willingness to take a fresh look at how we

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can provide incentives for our teachers. And he enjoys my unqualified support in this effort. There is one other important education issue

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before us, vocational education. I will sign an executive order creating a task force to study vocational education under the agents

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of the State Board of Education. Drawn from both public and private sectors, the task force will take a comprehensive look

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at vocational education in Delaware, and report to us by the end of the year, recommending an approach that will allow us to ensure

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a balanced and appropriate education system. In the past year, as we have reached out to the community for support and fresh ideas about education,

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I have discovered that there was taking place a lively and imaginative debate about how we can improve our schools. Let me tell you what I mean. A year ago,

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when I met with the state PTA, I challenged its members to find ways to make our schools even better. Not with programs that cost more money,

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but, with programs that make more effective use of the money we're already spending. A few weeks ago,

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Jeanette Krauss of the state PTA came back to me with a long list of ideas. Ideas like increasing the flexibility in funding formulas,

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like reducing the rate of teacher absenteeism, like changing the system so that school buses aren't running empty

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when students remain after school for extracurricular activities. In the weeks to come, I hope we can begin a similar dialogue here.

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Only good can come of it for our state and our young people. Today, I have discussed education, the environment,

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a program to help our youngest children, and our commitment to making lasting improvements in the state merit system.

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There is much left to discuss, however, economic development, including support for the agricultural community,

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bond bail reform, the many social services the state provides, and the need for safer streets and better roads.

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And having reviewed the impact of a conservative approach to state spending, I am mindful of the need to strengthen the control we have over state spending,

00:27:39.720 - 00:27:46.250

particularly in light of what is happening in Washington. When I present my recommended budget for your consideration,

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I will address those matters because each deserves our attention and there are important steps we can take in each area.

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For now, I would like to leave you with a final observation on the state of the State. We have spent a great deal

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of time talking about education in recent years and backed up our demands for higher standards with a substantial increase

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in state support for public education. And both can be found ample evidence of our commitment to good schools.

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But I would suggest that commitment should be viewed in a broader context, a commitment to Delaware,

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to all that is good in our state, and to making our state better. Consider. Not far from here is the Delaware Fire School.

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The training ground for the thousands of men and women who volunteer to fight an ancient enemy and save lives.

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It is, if not the best, then among the very best in the nation. I don't find that surprising. As you drive through Sussex County or

00:28:41.900 - 00:28:48.530

Kent County or southern New Castle County, you see some of the most beautiful farmland in the country. You also see the results

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of independence and innovation. Successful and well-run farms, and a farming community that knows the State is willing to respond to its needs.

00:28:59.470 - 00:29:09.460

[Audience applauses] Construction cranes tower over the Wilmington skyline as that city continues

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to confound those who would suggest that the revitalization of our cities is flagging. It is a city on the move.

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Not far from Wilmington, in Delaware City, tremendous strides have been taken to ensure the health and safety of that town's residents.

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A threat has been removed and state government has reinforced its commitment to protecting its citizens. All over the state,

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there are productive and growing businesses, a tribute to both the enterprise of the people who run them and the energy

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and skill their employees. We make spacesuits. We manufacture chemicals. We build cars. We produce food for the table.

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And do countless other things all well. In my inaugural address, I quoted the words of Theodore Roosevelt who said,

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"This country will not be a good place for any of us to live in, unless we make it a good place for all of us to live in."

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I said the same sentiment could be applied to Delaware. It is a belief shared by the citizens of this state.

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All of us are committed to a better Delaware. And I'm confident that in the months to come, you and I will honor the trust bestowed upon us and continue to honor

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that commitment. Thank you very much. [Audience applauses]