In the coming weeks, I will introduce a budget repair bill focusing on the most immediate fiscal challenges our state must address to avoid massive layoffs or reductions in critical services. Our budget repair bill will lay the foundation for a structurally sound budget that doesn't rely on short-term fixes and other stop-gap measures that only delay the pain and create perilous uncertainty.

This is the right moment in time, our moment in time, to refocus government to better serve the taxpayers of this state. To do this, we must provide flexibility to our leaders at all levels.

One area we will have to look at is public employee benefits. Now let me be clear: we have good and decent people who work for government at the state and local level. As Coach Lombardi said, "the measure of who we are is what we do with what we have." For years, our employees have been asked to do more with less.

However, the difficult reality is that healthcare costs and pension costs have risen dramatically and that has created a benefit system that is simply unsustainable. Government benefits have grown while so many others in the private sector have seen their benefits adjusted in order to protect jobs.

Currently, most state employees pay next to nothing from their salaries toward their pension, while the state's taxpayers pay more than $190 million each year on state employees' behalf.

Similarly, most state workers only pay about 6% of their premium costs for their health care plan.

Asking public employees to make a pension payment of just over 5% (which is about the national average) and a premium payment of 12% (which is about half of the national average) would save the state more than $30 million over three months. Most workers outside of government would love a deal like that - particularly if it means saving jobs.

S84 Private sector workers have already responded to the tough economic times. When Mercury Marine was on the verge of moving nearly 2,000 jobs to Oklahoma, the company said that "comprehensive changes to wages, benefits and operational flexibility [were] necessary for Mercury to effectively compete in a smaller and fundamentally changed marketplace."

After a difficult struggle, the workers agreed to major concessions.

It wasn't easy for the workers, but the jobs stayed in Wisconsin. In fact the company said it would move some new jobs from Oklahoma to Wisconsin.

I took special note of the words of one of the workers who had lost his job during the economic downturn and who had the opportunity to gain it back. He said, "They have treated me and my family more than fairly over the years, and now they are in difficult times. I understand it's time to give back so that we can keep all of the jobs here in town."

That worker was one of 350 returning workers and new hires by Mercury over the last two years; a company which is now positioned to emerge from the downturn stronger and remains based here in Wisconsin.

While state government can't pick up and move, I hope that our state employees feel as if they've been treated fairly over the years, but - like all of us - they should recognize that we are in difficult economic and fiscal times.

Our upcoming budget is built on the premise that we must right size our government. That means reforming public employee benefits - as well as reforming entitlement programs and reforming the state's relationship with local governments.

Most importantly, our budget will focus on items that will help create an environment where the employers of this state can put 250,000 people to work.

The state's facing a fundamentally changed marketplace to which we have to respond. Like Wisconsin companies, our competition isn't just next door in Michigan, Illinois, or Minnesota but also across the world in China, Germany, and India. As a result, we must transform our government and business environment to compete globally.

With global competition also comes global opportunity. For instance, 96 percent of the world's population live, purchase and consume products outside of the United States. Wisconsin businesses who want to grow, expand and create new, good-paying jobs need to be able to get their products out to the world in a cost-effective manner.

That means a strong transportation network in Wisconsin; re-prioritizing our transportation investments. I challenged the Wisconsin Department of Transportation to look at new ways to reconstruct our state's busiest interchange - the Zoo Interchange - which is used by 350,000 people a day.

Our transportation leaders met the challenge and developed a plan that will start the project ahead of schedule and save the taxpayer's 600 million dollars.

And while we've done big things and we'll continue to do big things to help business grow jobs in Wisconsin, the quiet things matter too. In today's global economy small changes, even on the margins, matter. We'll continue to pursue the big and small changes necessary to get Wisconsin working again.

In my inaugural address, I quoted Article I, Section 22 of the state constitution which reads, "The blessings of a free government can only be maintained by a firm adherence to justice, moderation, temperance, frugality and virtue, and by frequent recurrence to fundamental principles."

Our new budget and government will affirm these values and fundamental principles. As I said when I was sworn in, "it is through frugality and moderation in government that we will see freedom and prosperity for our people."

That's really what this administration is all about: frugality and jobs. It is only through a more frugal government, that our economy can grow faster than others across the nation and around the globe. I want Wisconsin to lead the economic recovery.

That's why our special session Jobs Plan is important. We want to lower the cost of doing business in this state - through lower taxation, regulation and litigation costs and more relief from health care costs - so that more employers are able to create jobs for our people.

And it's why our budget repair bill, and then our budget are even more important. Each will demonstrate to the nation that Wisconsin is ready to meet the challenges of today and capitalize on the opportunities of tomorrow.

By making the tough choices we will send a message loud and clear thoughout our state, in Illinois, across the rest of the nation and around the world: Wisconsin is open for business. We are ready to grow. We will tackle the big issues. We will lead the way.

Recently, a national news organization did a story about how fast we are getting to work in Wisconsin. They asked why.

The reason is simple: I spent the past two years in a job interview with the people of Wisconsin telling you what I would do as your next CEO to get this state working again.

As you all know, I was pretty specific on our plans and even on the day I'd start implementing those plans, so I saw no reason to wait a year, or six months or even a month to get to work. Now is the time to take action.

You hired me to put Wisconsin back to work. I love this state and I know that you do too. I know that we can transform our state and - in turn - become a national leader in fiscal and economic reform.

It won't be easy, but the past 30 days have shown that we are ready to turn this state around.

Throughout the football season, the Packers were able to unite the people of our great state. Now, we need to use that same unity to show that we are ready to get Wisconsin working again. Acting together, I know we can - because I believe in Wisconsin.

Thank you. God bless you, God bless our Armed Forces and may God bless Wisconsin."

The Joint Convention arose.

7:37 P.M.