March 7, 2016
As of March 7th, governors in 40 states have given a State of the State speech or address to the legislature, with three more still scheduled. Many governors once again began their speech by highlighting progress in their state, including strong job growth, lower unemployment rates, continued balanced budgets, higher rainy day fund levels, tax reductions, pension reforms, government restructuring, and record high investments in elementary and secondary education. However, a number of governors this year also discussed serious fiscal challenges facing their state, including revenue shortfalls brought on by the decline in oil and natural gas prices, and long-term structural imbalances.
Many of the themes in this year’s speeches were similar to the last several years. Once again, governors prioritized elementary and secondary education and called for further investments in areas such as pre-K and full-day kindergarten. This year also saw a number of governors call for increased teacher pay, while others advocated for increased funds for charter schools, and some suggested changing the state’s education funding formula. In the area of higher education, many governors called for tuition growth limits, increased degree attainment, additional scholarship funds, and efforts to help relieve student loan debt. Similar to last year, a number of speeches discussed the poor state of infrastructure including crumbling roads and deficient bridges and called for additional investments. Healthcare costs were a point of emphasis in many addresses, although they were not the primary focus in most speeches. Several governors called for some form of Medicaid expansion in their state, while others advocated for modernizing their Medicaid system. Finally, governors again stressed the need to create jobs, grow the economy, provide an opportunity for all to succeed, and adjust to the changing world. Specific recommendations focused on items such as increased funding for workforce development and job training, research and development tax credits, reducing regulations, aid for small businesses, affordable housing, and property tax relief.
While many themes were similar to years past, other areas received additional emphasis this year, most notably the need to address drug abuse. Many governors discussed the opioid and heroin crisis in their state and proposed solutions such as increased access to treatment, additional law enforcement, changes in how drug charges are prosecuted, and limiting the availability of prescription opiates. Other areas specifically focused on in this year’s addresses include juvenile justice reforms, increased funding and treatment options for people with mental illnesses and developmental disabilities, foster care reform, water management, and rural initiatives in areas such as job creation and the recruitment of teachers. Finally, as noted above, while most states continue to see revenue growth and budgetary improvements, some states this year are facing significant fiscal difficulties. Several governors proposed solutions such as spending cuts, tax increases, changes to tax credits, and using reserves due to declining revenue from oil, natural gas, and coal. Additionally, governors in states facing structural imbalances recommended actions focused on the drivers of long-term unfunded obligations, avoiding one-time fixes, prioritizing core services, and addressing both the spending and revenue side.
Summaries of Governors' 2016 State of the State Addresses