00:00:08.270 - 00:00:45.470

Female voice: Smells good. [Wind noses over microphone} Female voice 2: For on its merits. Male voice: Honorable speaker, Male voice: it is my pleasure to present to the joint session

00:00:45.470 - 00:00:53.310

Male voice: his excellency Male voice: Michael N. Castle, Governor of the Male voice: state of Delaware. Male voice: Governor, welcome.

00:00:53.310 - 00:01:24.870

[Applause] [Microphone being positioned sounds] Mike Castle: Mr. President pro tem, Mr. Speaker. Mike Castle: Members of a 133rd General Assembly,

00:01:24.870 - 00:01:33.410

Mike Castle: The Cabinet, honored guests Mike Castle: and fellow Delawareans. Mike Castle: I will take about 25 minutes, Mike Castle: of the rest of your day.

00:01:33.410 - 00:01:38.900

Mike Castle: But I can tell you to get to this point, Mike Castle: a lot of people put in a Mike Castle: lot of hard work and there are Mike Castle: a lot of big books which you'll

00:01:38.900 - 00:01:46.140

Mike Castle: be looking at later today. Mike Castle: And a lot of members of my Cabinet do that. Mike Castle: But of course there's always one who has to Mike Castle: do most of the work and stands out.

00:01:46.140 - 00:01:49.730

Mike Castle: And that is Steve Golding, Mike Castle: my budget director. Mike Castle: And I would like to thank him for Mike Castle: all the work he's done

00:01:49.730 - 00:02:01.820

Mike Castle: for the last six months. [Applause] Mike Castle: Delaware has enjoyed Mike Castle: some very good years recently. Mike Castle: It has been a time of prosperity and

00:02:01.820 - 00:02:09.320

Mike Castle: opportunity for our citizens. Mike Castle: This must be attributed in Mike Castle: part to the fact that state government Mike Castle: has learned to meet

00:02:09.320 - 00:02:16.790

Mike Castle: its responsibilities while Mike Castle: limiting the demands it Mike Castle: makes on its taxpayers. Mike Castle: The result has been eight years of

00:02:16.790 - 00:02:28.010

Mike Castle: balanced budgets and a ninth in Mike Castle: the one I am presenting today. Mike Castle: A healthy reserve of $47.6 million in Mike Castle: the constitutionally mandated rainy day fund,

00:02:28.010 - 00:02:35.760

Mike Castle: and another $19.2 million Mike Castle: in the 2% set aside. Mike Castle: At the same time, we have Mike Castle: continued to provide

00:02:35.760 - 00:02:44.820

Mike Castle: the programs and Mike Castle: services our citizens expect. Mike Castle: In fact, the state's ability to serve Mike Castle: its citizens has increased in recent years.

00:02:44.820 - 00:02:56.360

Mike Castle: While the cost to Mike Castle: individual taxpayers has decreased. Mike Castle: The tax cuts enacted in 1984 and 1985 alone have Mike Castle: resulted in $130 million

00:02:56.360 - 00:03:05.660

Mike Castle: the state might have collected, Mike Castle: remaining in our taxpayers hands. Mike Castle: And since 1979, the average family has Mike Castle: seen its personal income taxes

00:03:05.660 - 00:03:13.760

Mike Castle: cut by over 40%. Mike Castle: We have done very well. Mike Castle: But now there is concern Mike Castle: about the effect of the The Gramm–Rudman

00:03:13.760 - 00:03:21.560

amendment which is supposed to reduce the federal deficit by cutting federal spending. Tomorrow President Reagan will sign

00:03:21.560 - 00:03:28.540

an order cutting funds that would have gone to state and local governments. Delaware will not be exempt

00:03:28.540 - 00:03:36.590

from the Gramm–Rudman cuts. And in the months ahead, we must decide which programs deserve our continued support and whether

00:03:36.590 - 00:03:45.200

state funds should replace federal funds. But while we will have to shoulder our fair share of the burden, we will not find

00:03:45.200 - 00:03:51.830

ourselves among the hand wringers. For one very good reason. We have learned from experience the importance of imposing

00:03:51.830 - 00:03:59.150

limits on state spending. We know how to make the hard choices. I will have more to say about Gramm–Rudman shortly.

00:03:59.150 - 00:04:07.880

Now, however, I would like to turn to the budget I am presenting to you today. First of all, it reflects the importance of controlling

00:04:07.880 - 00:04:16.580

the growth of state spending. This budget provides for a total increase of 5.3% in expenditures when compared dollar for dollar

00:04:16.580 - 00:04:24.250

to the current fiscal year, including both base operating budget and onetime expenditures. I believe that is enough.

00:04:24.250 - 00:04:31.610

It is a budget which allows government to both match the rate of inflation and provide for additional growth in key areas,

00:04:31.610 - 00:04:37.790

notably education and environmental protection that will have long-term and lasting benefits for the citizens of

00:04:37.790 - 00:04:45.160

Delaware and their children and grandchildren. It is a budget that will allow the state to live within its means.

00:04:45.160 - 00:04:55.010

And turned back to those who support it, the taxpayers, whatever revenues are not essential for its operation. The Delaware economic and financial

00:04:55.010 - 00:05:03.980

advisory council's latest estimate of new revenues and fiscal 1987 is $911.3 million. After we add the expected

00:05:03.980 - 00:05:14.000

fiscal 86 surplus of $58.1 million and meet our reserve requirements. $939.3 million will be available for

00:05:14.000 - 00:05:26.090

State programs plus $10.8 million for grants-in-aid. Of that amount, I'm recommending $923.6 million for the fiscal 1987 budget,

00:05:26.090 - 00:05:36.140

the balance $15.7 million I will discuss later. Having described the budget in general terms, I now turn to the specifics and there is

00:05:36.140 - 00:05:43.100

no more appropriate starting point than the departments which claim a substantial part of the state's resources and

00:05:43.100 - 00:05:50.990

provide services to many of our citizens. Under the broad umbrella of Human Services are a number of important agencies,

00:05:50.990 - 00:06:00.390

health and social services, youth services, as well as elements of our education system. Diverse as our concerns may be, they share a philosophy.

00:06:00.390 - 00:06:10.790

that the state's role is to assist each individual to live his or her life to the fullest, independent and unencumbered by

00:06:10.790 - 00:06:19.530

institutional restraints or regulations. They work to prevent cause rather than effect. To get at the roots of poverty and failure,

00:06:19.530 - 00:06:27.980

rather than simply provide long-term support for those who suffer the consequences of early neglect. They are committed to

00:06:27.980 - 00:06:38.400

making institutionalisation the solution of last resort, keeping as many citizens as possible in the community. And they share a goal.

00:06:38.400 - 00:06:49.820

The quality of care the state provides for each citizen is the best possible. I told you two weeks ago that I am proposing a comprehensive program to treat many of

00:06:49.820 - 00:06:55.410

the problems that affect our youngest citizens. Poor help. The effects of broken families,

00:06:55.410 - 00:07:02.810

poverty, and inadequate education. Just as our aggressive economic development program aims at bringing

00:07:02.810 - 00:07:09.980

new opportunities to our citizens, so our social programs must be designed to assure that every citizen is

00:07:09.980 - 00:07:17.660

able to seize those opportunities. That they have not been robbed of initiative and hope as children. In the coming year,

00:07:17.660 - 00:07:27.950

we will begin a comprehensive effort to assure that all children in Delaware are born healthy and that they receive postnatal care that keeps them healthy.

00:07:27.950 - 00:07:35.190

This will be a statewide effort and one that centers in the home where it can do the most good. At the same time,

00:07:35.190 - 00:07:43.910

recognizing that foster care is sometimes a necessary alternative, I am recommending that we take steps to assure that enough foster care homes are

00:07:43.910 - 00:07:55.290

available by increasing foster care rates by 15.5% in the coming fiscal year and provide the staff necessary to improve service coordination.

00:07:55.290 - 00:08:03.320

Finally, to assure that young children are able to derive full benefit from our education system when they begin school

00:08:03.320 - 00:08:11.670

I am recommending that pilot programs be established in each county to identify learning disability among four-year-olds.

00:08:11.670 - 00:08:17.930

Many other citizens require our help, of course, and the budget I am presenting to you today will allow us

00:08:17.930 - 00:08:24.140

to meet federal guidelines to care for the mentally handicapped at Stockley and in the process, increase our ability

00:08:24.140 - 00:08:30.620

to provide adequate services. I am also recommending increased funding to continue toward our goal of

00:08:30.620 - 00:08:42.160

deinstitutionalization whenever possible, and to continue to reduce the Stockley population from over 400 to 240, giving our mentally handicapped citizens

00:08:42.160 - 00:08:52.610

a new measure of independence. If society's progress is measured in part by how we treat the mentally retarded, then we have made a great deal of progress.

00:08:52.610 - 00:08:59.480

We have recognized that few people need or want their lives regulated by those who would help or their independence taken away

00:08:59.480 - 00:09:06.930

in the name of compassion. The assistance the state provides must be appropriate to the level of an individual's needs.

00:09:06.930 - 00:09:15.920

If providing meals at home for the age to allow our senior citizens to live out their years and greater dignity than we should provide resources to do it.

00:09:15.920 - 00:09:24.380

If there is a need for temporary shelter for someone in need, then we should provide that as well. And if there's a youngster in need of

00:09:24.380 - 00:09:33.320

guidance which has not provided at home, but who does not require incarceration at Ferris, then we should provide an alternative.

00:09:33.320 - 00:09:41.750

The budget I'm presenting to you today does those things. It also recognizes that at times, the state's responsibility to

00:09:41.750 - 00:09:48.740

provide assistance is accompanied by the need to provide incentives to greater independence and productivity. We are meeting

00:09:48.740 - 00:09:56.180

our responsibility by recommending a 4% increase in aid to families with dependent children. The second, such an increase

00:09:56.180 - 00:10:07.680

in as many years. A study of our AFDC clients shows that over 29% remained on public assistance for over nine years,

00:10:07.680 - 00:10:15.200

reflecting the failure of the system to provide alternative programs to assist people to regain their self-respect.

00:10:15.200 - 00:10:22.970

We must provide the means to break the chain of dependency that prevents people from achieving independence and success.

00:10:22.970 - 00:10:30.770

We will take our first steps in that direction this year. I am recommending creation of an employability program that will permit

00:10:30.770 - 00:10:39.800

the department to begin to target clients who, because they are going to school or caring for children at home, can not get a job.

00:10:39.800 - 00:10:48.140

In my State of the State Address, I told you that I've given high priority to protecting our environment. Recently, the state's ability

00:10:48.140 - 00:10:55.280

to respond to threatening situations and our willingness to take tough action where necessary, have been tested and proven.

00:10:55.280 - 00:11:02.930

A major oil spill in the Delaware River was contained. Laws to protect both our environment and our citizens have been

00:11:02.930 - 00:11:09.620

vigorously enforced and dangerous storage sites had been cleaned up. Each underlines the importance

00:11:09.620 - 00:11:15.710

of the state's role in protecting our citizens from harm. In the budget before you, I'm allocating

00:11:15.710 - 00:11:23.930

over $1 million to ensure that Delaware has the resources to monitor the air quality, the expertise to keep our water clean,

00:11:23.930 - 00:11:30.200

and enough enforcement personnel to ensure that the regulations which we establish our obeyed.

00:11:30.200 - 00:11:37.500

We are also living up to our promise to clean up already contaminated sites which threaten our natural resources.

00:11:37.500 - 00:11:46.290

An additional million dollars has been set aside to continue the programs of toxic waste cleanup and ensure that there are no needless delays

00:11:46.290 - 00:11:55.310

once appropriate remedial plans have been approved and these Superfund projects can begin. The message of this administration is clear.

00:11:55.310 - 00:12:04.460

We will not tolerate the violation of our laws or the pollution of our environment. The citizens of this state and the vast majority of

00:12:04.460 - 00:12:13.340

businesses and industries in Delaware expect nothing less. You cannot read a newspaper or listen to a news report today

00:12:13.340 - 00:12:21.710

without realizing that crime continues to demand society's and the state's attention, our citizens expect to be safe in their homes and on the

00:12:21.710 - 00:12:29.000

streets of their communities. That requires an efficient and fair criminal justice system and a correction system that can

00:12:29.000 - 00:12:35.600

protect society from dangerous criminals while helping other offenders learn to be productive members of society.

00:12:35.600 - 00:12:42.560

The citizens of this state don't want to hear excuses. They don't want to be told about overcrowding,

00:12:42.560 - 00:12:48.440

which has resulted in dangerous offender being set free, or that those convicted of drunk driving offenses are

00:12:48.440 - 00:12:54.740

not serving their sentences. Commissioner Sullivan has already begun to address those twin concerns and to

00:12:54.740 - 00:13:03.500

assure that the state is able to live up to its responsibility for public safety, this budget includes $1.4 million for the startup of

00:13:03.500 - 00:13:13.490

the new 300 bed minimum security facility at Smyrna. In conjunction with existing facilities, this will help us meet the demands placed on

00:13:13.490 - 00:13:22.720

us by a growing prison population, while guaranteeing that those sentenced for drunk driving offenses indeed serve out their sentences.

00:13:22.720 - 00:13:31.550

I am recommending that you continue funding for an alcohol and drug program, as well as the broader elements of our sentencing accountability initiative,

00:13:31.550 - 00:13:42.320

and a new alternative program for juveniles, which will provide the means for rehabilitation for 40 young offenders. My budget also includes

00:13:42.320 - 00:13:50.660

new funding for family court in Kent in Sussex counties and resources to continue to eliminate delays in both Family Court

00:13:50.660 - 00:13:59.450

and the criminal justice system as a whole. One third of the budget I'm presenting to you today will be spent on the education

00:13:59.450 - 00:14:09.990

of our children in kindergarten through 12th grade, over $306 million. Not only does education again received the largest allocation of new state funds,

00:14:09.990 - 00:14:18.830

but almost a quarter of total spending on public schools has been added in just three years. As set forth in my State of the State Address,

00:14:18.830 - 00:14:28.750

several steps are being taken to enhance teacher salaries and assure that we have the ability to continue to attract and keep good teachers.

00:14:28.750 - 00:14:40.730

I have recommended a $285 increase for every teacher to be adopted immediately. I have recommended a $9.5 million pay increase for Education employees adding up

00:14:40.730 - 00:14:47.090

to over $1000 per teacher. With the proposed change and the teacher pay structure to increase starting salaries

00:14:47.090 - 00:14:57.170

by approximately $2000. And I am recommending an additional $5.4 million for Division 3, 98% of which

00:14:57.170 - 00:15:03.920

has been used for educational salaries in the past. Combined with increased local supplements, particularly in those districts

00:15:03.920 - 00:15:11.610

which have passed referenda, teachers this year will receive perhaps the largest single pay increase in any year in Delaware's history.

00:15:11.610 - 00:15:19.160

Other funds are being recommended for a scholarship loan program for high school seniors going to Delaware colleges and majoring in

00:15:19.160 - 00:15:27.560

education to support the training and education components of the DPI instructional improvement model, and to support the development

00:15:27.560 - 00:15:33.980

of mastery testing. Now we should examine what we expect to obtain for this great commitment of

00:15:33.980 - 00:15:43.240

our dollars and human resources. As I've already said, we want the ability to recruit new teachers in a highly competitive market.

00:15:43.240 - 00:15:50.810

At the same time, we must retain more experienced teachers whose financial needs draw them away from the classroom.

00:15:50.810 - 00:15:58.790

We must follow through on an evaluation process in which administrators and teachers know exactly what to expect and are

00:15:58.790 - 00:16:07.010

focused on the teaching elements which have direct correlation with student achievement. We need a comprehensive teacher in-service

00:16:07.010 - 00:16:15.140

program to help make good teachers better and to provide improvement programs for those evaluated as unsatisfactory.

00:16:15.140 - 00:16:24.380

Our efforts to enhance education must focus on improving the way we use existing dollars. We spend more per pupil on

00:16:24.380 - 00:16:30.950

education than almost any other state, and this year I want educators and interested citizens to work

00:16:30.950 - 00:16:39.620

together to ensure that that money is being spent properly. And we need to begin a pilot program that will make schools more

00:16:39.620 - 00:16:47.720

efficient in providing support where it belongs in the classroom. This is an addition to the pilot incentive program I

00:16:47.720 - 00:16:54.340

described in my State of the State Address and which Mike Wallace, Christina School District and the local teachers association

00:16:54.340 - 00:17:02.990

have already begun working on. While much of our time and resources have been devoted to public education in Delaware,

00:17:02.990 - 00:17:11.870

higher education must not be ignored. Each of our institutions plays an important role in the state. But I think it is appropriate to single out

00:17:11.870 - 00:17:18.290

one development at the University of Delaware for mention. In the past year, the University has taken

00:17:18.290 - 00:17:27.230

great strides toward becoming a national center for research in the area of composite materials, an esoteric subject, which results is, with results

00:17:27.230 - 00:17:33.820

as practical as a new, safer bumper for automobiles. I am particularly proud that the University of Delaware

00:17:33.820 - 00:17:41.120

has begun to received national recognition. And my budget includes an increase in funding for the important research that is going on

00:17:41.120 - 00:17:49.590

under Byron Pipe's enthusiastic leadership. We're also increasing our support for the Colleges of Engineering, Science of Business,

00:17:49.590 - 00:17:56.510

funding a pilot program and computer software development, another area where the University excels. And more funding for

00:17:56.510 - 00:18:04.900

the research partnership fund. The budget also reflects the priorities of both Delaware State College where faculty development program is addressed.

00:18:04.900 - 00:18:15.080

And Delaware Technical and Community College, white earmarking substantial funds to make salaries competitive. In my State of the State Address,

00:18:15.080 - 00:18:22.040

I indicated my support for the report prepared by the Compensation and Productivity Commission. My budget includes

00:18:22.040 - 00:18:28.880

funding which will accomplish the major recommendations made by the commission. First, I propose that we

00:18:28.880 - 00:18:36.570

restore internal equity to our system. The commission ranked each of our 1200 job classes in relation to all other classes.

00:18:36.570 - 00:18:45.140

Some 900 employees were found to be compensated at less than the minimum pay level for the type of job they are performing.

00:18:45.140 - 00:18:53.480

My budget provide $650,000 to bring these employees within the higher recommended pay range and to assure that

00:18:53.480 - 00:19:01.010

our entire pay structure is competitive with other state and local governments. Second, funds are included in

00:19:01.010 - 00:19:08.690

my budget to help improve productivity. I propose we focus on management ineffectiveness. Since that has been identified as

00:19:08.690 - 00:19:16.010

a single greatest cause of declining productivity in the United States. A Management Development Institute to provide

00:19:16.010 - 00:19:21.770

a comprehensive structured training program for managers and supervisors will help them improve

00:19:21.770 - 00:19:30.860

their skills and become more effective. I have also included funds to develop employee incentive programs like flex time, service awards,

00:19:30.860 - 00:19:41.730

employee participation programs. Finally, my budget includes a 4.5% pay increase for all state employees. When combined with the teachers pay plan,

00:19:41.730 - 00:19:50.250

additional compensable elements such as hazardous duty pay and a uniform shift differential, I am proposing over $26 million dollars

00:19:50.250 - 00:20:00.370

be dedicated to salaries. That's 49% of our new revenues available this year. Since the beginning of this decade,

00:20:00.370 - 00:20:10.700

Delaware has received over $300 million in federal funds for highway projects. In 1985 alone, we received almost $56 million dollars.

00:20:10.700 - 00:20:17.410

Few other states have qualified to receive their full share of federal funding for highways. And this speaks well

00:20:17.410 - 00:20:24.800

of what we have accomplished in building a good road system statewide. As we address or a highway needs in the coming session through the

00:20:24.800 - 00:20:32.090

budget and bond bills, it might be useful to consider what has been accomplished recently. Of great concern

00:20:32.090 - 00:20:40.760

to the residence of the Dover area, as well as travelers up and down our state, is a US 13 relief route. I'm happy to report that

00:20:40.760 - 00:20:46.730

the initial public hearing stage of planning on this important project has been completed and the department of

00:20:46.730 - 00:20:55.500

transportation's recommendation for a route will be presented to the public and the general assembly in the near future. Construction on several other major projects

00:20:55.500 - 00:21:02.420

begun during 1985, after years of planning and Delaware motorists will soon see the benefits of improvements.

00:21:02.420 - 00:21:09.530

The Concord Pike-Route 4 in the Newark area and Route 8 in the Dover area. And this year, other

00:21:09.530 - 00:21:19.880

major projects will begin: the I-495 Edgemoor Interchange, Route 7, from Route 13 to the Pennsylvania line, US 13 through Smyrna,

00:21:19.880 - 00:21:28.970

Dennys Road in Dover, US 13 from Seaford to Kent County, Route1 through Bethany Beach, the second phase of work on Concord Pike and

00:21:28.970 - 00:21:37.880

Naamans Road. For Sussex County in particular, we will begin a comprehensive planning study of East-West routes to adjust the problem of

00:21:37.880 - 00:21:49.140

heavy summer traffic and inconvenience experienced by many Sussex County towns. A good transportation system is essential to all segments of our economy.

00:21:49.140 - 00:21:55.460

The success of our agricultural community, for instance, depends on good roads, but the states support for

00:21:55.460 - 00:22:03.230

farming does not stop there. My recommended budget includes funding both to assist the states farmers in protecting their crops from

00:22:03.230 - 00:22:11.100

harmful pest and in marketing their products effectively once they have been harvested. And it addresses a problem

00:22:11.100 - 00:22:19.760

that has caused havoc in other states in recent years, avian influenza. We in Delaware have been spared from the substantial losses

00:22:19.760 - 00:22:27.350

other states have experienced. In part because of the state has moved quickly when there is a threat. Today, I'm recommending that we provide

00:22:27.350 - 00:22:36.140

the Department of Agriculture with the means to sustain and enhance its efforts to control avian flu. Now I would like to turn

00:22:36.140 - 00:22:43.180

to the annual bond bill, which authorizes long-term borrowing and sets priorities for improvements to the state's infrastructure.

00:22:43.180 - 00:22:50.300

While we consider budget and bond projects separately, in fact they are closely linked, and discussion of both is appropriate

00:22:50.300 - 00:22:56.870

today. It has become apparent to all of us that the time has come to increase both public scrutiny and

00:22:56.870 - 00:23:03.770

public discussion of the state's capital spending program. Each agency and department already has been asked to set

00:23:03.770 - 00:23:12.290

its own priorities for the coming fiscal year, to document them and measure their cost effectiveness. After the Director of

00:23:12.290 - 00:23:17.750

the Delaware Development Office holds public hearings on these proposals in February, I will present them to the General

00:23:17.750 - 00:23:25.970

Assembly in early April. In addition, I will instruct all Cabinet Secretaries to make their capital spending proposals available

00:23:25.970 - 00:23:34.190

during their presentations to the Joint Finance Committee. As I said, when I began, the last few years

00:23:34.190 - 00:23:41.860

have been good to Delaware, as we have learned the importance of cooperation and bipartisanship. Delaware is a working partnership,

00:23:41.860 - 00:23:48.350

and that partnership has paid off. The guiding and fundamental principles of that partnership have been to restrain

00:23:48.350 - 00:23:55.130

the growth of government. To help those who need help, but otherwise keep government out of its citizens affairs,

00:23:55.130 - 00:24:02.600

and to make sure that those who are responsible for our prosperity enjoy the benefits of their own labor by returning

00:24:02.600 - 00:24:13.030

to them revenues the state does not need. In preparing my recommendations on state spending for fiscal 1987, I have hewed closely to those principles.

00:24:13.030 - 00:24:18.110

As a result, this budget, which meets the needs of all the departments and increases state spending

00:24:18.110 - 00:24:27.920

in several critical areas, leaves unexpended $15.7 million, which will be available during fiscal 1987. These funds should be used to

00:24:27.920 - 00:24:36.710

address two important considerations. The success which we have achieved in producing balanced budgets and surplus revenues is directly

00:24:36.710 - 00:24:45.810

linked to the success of the private sector and to the employers and employees who make it work. Therefore, I would propose that we return

00:24:45.810 - 00:24:53.040

$10.5 million to further encourage job growth. I propose that this be done in a balanced way.

00:24:53.040 - 00:25:01.040

I am recommending that we reduce the public utility tax by 10 percent, reduce that gross receipts tax on manufacturers to help

00:25:01.040 - 00:25:08.030

attract blue collar jobs, extend a monthly exclusion from the gross receipts tax to all businesses that do not

00:25:08.030 - 00:25:15.060

have one now, and reduce paperwork for thousands of small businesses by simplifying filing requirements.

00:25:15.060 - 00:25:23.170

In addition, I am supporting several measures which will close loopholes and assure fairness in our tax laws.

00:25:23.170 - 00:25:32.350

Taken together, these regulatory changes will result in no cost to the state or to our taxpayers. One other adjustment must be noted.

00:25:32.350 - 00:25:38.540

I am recommending that we increase the permitted deduction for charitable contributions to match the federal limit.

00:25:38.540 - 00:25:45.920

This will help Delaware's charitable organizations. Balanced with this tax adjustment for the business community,

00:25:45.920 - 00:25:54.830

I would also continue our effort to lower Delaware's personal income tax with a modest across-the-board reduction of all tax rates from the

00:25:54.830 - 00:26:04.250

lowest to the highest of 4%. These two proposals for tax relief to the business community and to the individual taxpayers would

00:26:04.250 - 00:26:12.770

result in a net reduction in state revenue for the next year of approximately $10.5 million and leave another $5.3

00:26:12.770 - 00:26:21.950

million still unappropriated. Those revenues, I would leave unappropriated until we know how Gramm–Rudman will affect us.

00:26:21.950 - 00:26:29.450

Unbridled and unchecked federal spending over the last decade has endanger the vitality of this nation by

00:26:29.450 - 00:26:36.470

producing a deficit so large that the federal government is competing with both the states and the private sector for capital

00:26:36.470 - 00:26:47.150

needed to continue economic expansion. While we must recognize that some cuts will cause pain for certain groups in our society, and their legitimate needs should be

00:26:47.150 - 00:26:55.860

met with state and local resources, we cannot simply replace federal cuts dollar for dollar. I therefore propose reserving $5.3

00:26:55.860 - 00:27:03.410

million for the purpose of examining those final federal cuts as the Joint Finance Committee prepares to draft the budget,

00:27:03.410 - 00:27:13.250

and using those funds in areas we decide should be addressed. The people of the state of have made it abundantly clear that they want us

00:27:13.250 - 00:27:20.680

to take as little as possible from them, to use what we take wisely, and to place clear limits on what government is and does.

00:27:20.680 - 00:27:29.870

There is no question that the excellent management and careful control of state spending in recent years offers new opportunities.

00:27:29.870 - 00:27:40.180

But they are opportunities to improve government and refocus its efforts and not an excuse to expand it or increase its cost beyond reason.

00:27:40.180 - 00:27:48.800

Compassionate, yes. Caring yes. Innovating, yes. But there is no compassion and creating a life of dependence.

00:27:48.800 - 00:27:56.470

It is not caring to stifle initiative. And there is no innovation in simply increasing government spending appetite,

00:27:56.470 - 00:28:06.710

adding new programs on top of old ones. The citizens of this state want responsive, active government that continues to set and meet new goals.

00:28:06.710 - 00:28:14.840

But at the same time, they want government to exercise judgment as it weighs the new programs it would impose on its agencies

00:28:14.840 - 00:28:21.860

to meet the goals that has set already before taking on new responsibilities. If I may leave my text for

00:28:21.860 - 00:28:29.810

a moment at this point as I conclude, I would like to discuss the tragedy that came to this country two days ago on the death of

00:28:29.810 - 00:28:36.270

Christa McAuliffe and six other very brave people who undertook a space mission on the Space Shuttle Challenger.

00:28:36.270 - 00:28:42.500

I think in this case, it was made perhaps more terrible by the mere fact that there was a teacher aboard and

00:28:42.500 - 00:28:49.280

so many young people in our country were focusing on this. But this teacher, Christa McAuliffe, was living her dream, her

00:28:49.280 - 00:28:55.220

dual dreams perhaps to teach and to go into space and I watched the television as many of us did perhaps to see if

00:28:55.220 - 00:29:00.180

we can fathom any reason for something like this. And she said something which she probably never intended to be a quote.

00:29:00.180 - 00:29:05.870

But I noted that she said, as she was being prepared to go up into space, she said ,"To follow

00:29:05.870 - 00:29:15.080

your instincts and go for your dreams." And I think that Christa McAuliffe would have approved of what teachers are doing today, trying to explain to young people

00:29:15.080 - 00:29:21.200

around this country and perhaps around the world what happened and why it happened. And it is for these reasons

00:29:21.200 - 00:29:29.030

today that I want to propose that the education scholarships I have recommended be named in her honor. It is a fitting tribute to

00:29:29.030 - 00:29:35.780

honor her memory and encouraging young people perhaps to follow in her footsteps, to follow into teaching and

00:29:35.780 - 00:30:12.090

perhaps into space. And I thank you very much. [Applause] Mike Castle: Thank you. [Female voice in the background]