-As the lieutenant -governor and chair of this -joint committee, I get the -the pleasure of introducing -a young man that represents -the future of Vermont.

-I get to pick one guest -to come and sit -in the well of the house.

-And today, -I invited Zachary Hornstein, known to his folks and friends as Zach and Zach.

We met through -First Robotics, which is an -!incredible program that if you -don't know about it, -I'd ask you to look into it.

-It's offered in a bunch -of schools around the state, -but not all of them yet.

-And they build teams.

-They're similar -to athletic teams, -except instead of playing -soccer.

-They're learning hands on -engineering, robotics.

-Really great Stem skills.

-And so, I would like to ask -Zach if he would -stand up and be recognized.

-This joint -assembly is convened -pursuant -to the provisions of J.

-Rs.

30, -!which the clerk will now read.

-Yes, sir.

-Do you want to -provide for a joint -assembly to receive the state -of the state message -from the governor, -resolved by the Senate -and House of Representatives, that the two houses meet in Joint Assembly on Wednesday, -January 7th, 2026 -at 2:00 in the afternoon -to receive the state -of the state message -from the governor.

-Now, the chair recognizes the Senator from Chittenden Central District -for the purpose -of making a motion.

-!I move that a committee of six -be appointed by the chair -to wait upon His Excellency -the Governor, -and escort him -into this chamber -for the purpose -of receiving his state -of the state message.

-Now, the Senator -from Chittenden Central -District has moved -that the Committee of Six -be appointed by the chair -to wait upon His Excellency -the Governor, -and escort him -into this chamber -for the purpose -of receiving his State -of the state message.

Are -you ready for the question?

-If so, all in favor, say aye.

-All opposed?

Nay.

-The ayes have it -and the motion carries.

-The members are the member -from Essex Junction.

-Representative Dolan, -the member from Saint Albans -town representative Toof, -the member from Burlington.

-Representative Cheena, -the Senator from Windsor -district.

-Senator white, the Senator -from Windsor district.

-Senator.

-Major and the Senator -from Rutland District.

-Senator Williams, will -the Committee please assemble -and perform -the duties assigned to it?

-Madam Sergeant at arms.

-Mr.

president, -would the members -of the General -Assembly and guests -please rise?

-It is my distinct privilege -to present to you -the governor of Vermont, -the Honorable Philip B -Scott.

-[applause] -It is now my distinct honor -to present to you -the governor -of the state of Vermont.

-The Honorable Philip B Scott.

-[applause] -Mr.

president, -madam speaker, members -of the General Assembly.

Mr.

-Chief justice, honored -guests, my fellow Vermonters, -the opening of the second -half of the biennium gives -governors a chance to report -on the state of the state, -reflect on what we've done -and what we still have to do -for 235 years, those elected -have to gather -to do the work of democracy, -the building, the town -and the season may -have all changed, -but our purpose has not.

-We're here to solve problems -and help people.

-Unfortunately, across -much of the country, -that basic principle -has been lost -and with it, faith -in government itself.

-When conflict is chosen over -cooperation, division -over decency -and outrage over outcomes, -people lose trust.

-They stop believing -their voices matter, -and too many wonder -if their government -still works for them.

-But here's the good news.

-Vermont can be the example.

-We can fiercely debate -the issues, -but do it in a way -that's civil and respectful.

-So we get better policy, -not better campaign material.

-!This is entirely in our hands.

-We don't need to be -asked to do the right thing.

-We just need to do it.

-In 13 days, -I'll present a budget that -!reflects an important reality.

-One time pandemic recovery -funds are gone -and federal support -is uncertain.

-All politics in Washington -keep fear and anger high.

-Families are dealing -with the ever increasing cost -of living -and a tax burden that rises -faster than their paychecks.

-So they're looking to us -for relief.

-That means being honest -about the hard choices -we have to make.

-Focusing on -what's within our control -and what matters most.

-This year's -spending package has required -difficult decisions, -but it sets clear priorities.

-Proposes smart investments -and it will be funded -without new taxes.

-My team has prepared -thoughtful proposals -in the areas of housing, -energy, -!health care and public safety, -and we'll share some of them -with you.

-Right after this speech.

-These issues are incredibly -important to our future, -and we will address -each of them with purpose.

-But today, -I want to talk to you about -our most critical challenge.

-Education reform.

-Because this session, -we have the opportunity -!and the obligation to continue -this transformation in order -to build the best public -!education system in the nation -at a cost -taxpayers can afford.

-Last year, -we took a historic and -long overdue step forward.

-X 73 was -a result of good policy work, -compromise, and importantly, -a willingness -to admit the old system -no longer serves Vermont.

-Because of your courage, -it's finally possible -to build something better.

-But that progress -is not guaranteed.

-And we've seen this movie -before -!X 60 focused mostly on funding -!rather than the system itself.

-X 68 only addressed -the property -tax burden, -not the growth in spending.

-Act 46 made small changes -to governance -but avoided dealing -with quality and outcomes.

-What's been -missing is a political -will to address the problem -!with a comprehensive approach, -because how it's organized, -where -resources are prioritized -and who is accountable for -results, are all intertwined.

-When costs rise and pressure -builds, the approach -has been to find that quick -and easy, quick and easy fix.

-Throw more money at it.

-Wrap it in duct tape -and hope it all holds.

-And every time the result -is higher costs -and higher taxes.

-While student outcomes falls -short and gaps -and opportunity widen -between regions.

-This is the reality -of the old system -and previous attempts -to keep it afloat.

-But things change -for the better.

-The moment -the majority of you had -the resolve to pass act 73, -which does so much more -than just -rearrange the deckchairs, -it will expand pre-K.

-So our youngest students -have a solid foundation.

-It will increase equity.

-So everyone is offered -a wide range of courses -!and programs across the state.

-It will expand CTE -so more -!kids have access to the trades -and the great careers -that come along with it.

-It will -!increase salaries for teachers -who are paid -less than their peers, -and more affluent areas.

-!X 73 will deliver the targeted -support students need -and build a structure -to carry out other reforms -to provide universal -after school programs, focus -on stronger literacy, create -accountability, increase -quality and much, much more.

-When you pass this law -last year, you took a stand -for your constituents -who said, enough is enough -and you chose a better future -for our kids.

-And for that, I thank you.

-!But the real work begins today -because now -we have to follow through.

-Here's what we're up against.

-Vermonters are set to spend -$2.5 billion on pre-K -through 12th.

-When I became governor, -it was 1.6 billion.

-We all know -the impact on property taxes, -because you get the bill -in the mail -and you -see it in black and white, -but we don't get a -bill for all the other ways -we contribute to the Ed fund.

-For example, every dollar -!from the sales tax and lottery -goes to the Ed fund, -as well as a portion of both -the rooms and meals, -and purchase and use taxes, -which means about 800 million -above and beyond property -taxes goes to education.

-Remember those tough budget -!decisions I mentioned earlier?

-Here's -something to think about.

-I'm sure some of you -would like to provide -more support for child care.

-!Others would like to give more -funding -to their towns -to take care of the roads.

-And you know me, -!I'd like to see us lower taxes -and build more housing -for working Vermonters.

-If we had just a fraction -of the general -fund dollars that have been -wasted due to inefficiencies, -!it would go a long way towards -investing -in any of these efforts -and more like public safety, -emergency shelters, -transportation, flood -mitigation, school -construction, -and dozens -of other initiatives.

-Instead, these other -priorities have to compete -for what's left.

-And this year, -there won't be much, -if any, left over.

-Because yet again, for -!the information we have today, -we expect education spending -!to require another 200 million -and another double -digit property tax increase.

-And Vermonters can't afford.

-So while it goes -against the grain -and doesn't actually fix the -!problem we're trying to solve.

-I'll be asking you to provide -some property tax relief -with another Band-Aid -while we follow through on -reforms that will finally -change our course.

-These added costs -and just numbers in a budget.

-They have impacts that ripple -throughout the workforce, -economy, communities -and our entire state.

-They make it harder -for young families to stay, -harder for working -!from Vermonters to buy a home, -and harder for employers -to create and keep good jobs.

-They force the working -class and retirees -on a fixed budget to leave -not because they want to, -but because they can't make -the math work.

-They cripple towns and cities -as they delay maintenance -and new investments, -because residents simply -can't afford -more on their tax bills.

-These are the real costs -of maintaining a system -designed for Vermont -that no longer exists.

-So if there's one thing -you take away from the speech -today, it's this -education transformation.

-It's not optional.

-It's essential.

-We've already taken -a critical step forward.

-!In the next few years, Vermont -will join nearly -every other state -using a funding system proven -to produce better outcomes.

-But how we fund education -is just part of the problem.

-And that's -because the old system -is too complex for the -number of students we serve -at our peak.

-In the late 90s, Vermont had -about 107,000 K-12 students.

-Apples to apples.

-Today, we educate -roughly 74,080 thousand.

-When you include pre-K -to serve those kids.

-We have 52 supervisory -unions in 119 districts, -with as few as 200 students, -while some of the highest -performing districts -in the country have 10,000.

-And each -!have their own administration, -!unique systems and fixed costs -for things like pay -and benefits, heating, -electricity, transportation -which all rise over time.

-I believe -most school leaders -are trying their very best, -but the reality is -they have few real options.

-Because while education -spending keeps rising, -!school leaders are also forced -to cut courses, teachers, -staff, extracurricular -activities and maintenance.

-As one superintendent -put it last year.

-We have no more to cut.

-That's not mismanagement.

-It's math.

-And that's the contradiction -of our education system.

-Before 73.

-Year after year, -we pay more to provide less.

-The way our system was built, -our approach for funding -and how we run -it has led to deep inequity.

-Just look at the size -difference.

-Some schools have well over -1000 students.

-Others have less than 50.

-And in those small schools, -!they also offer fewer courses.

-And teachers are stretched -thin, often covering -multiple subjects -and grade levels.

-And because our funding -formula doesn't actually -provide equity, -many schools are underfunded, -even though on average -we have among the highest -per pupil -spending in the country.

-Here are some real examples -to think about -in today's system, a student -in one district can choose -from 102 courses, and -in another a student has 73.

-That's -a few third fewer learning -opportunities -!based only on where they live.

-We also have two schools -in the same county, -one with 700 students, -one with 100.

-The larger one offers 17 -foreign language courses.

-The smaller school -has just four.

-And there are kids -from different districts -who take the same course -at the regional tech center, -but don't get the same credit -towards graduation.

-This isn't meaningful.

-Local control.

-It's significant -inconsistency, unequal -!opportunity, and frankly, it's -just not fair.

-Following through on act 73 -and rightsizing our systems.

-How we get there.

-First, -we need far fewer districts, -each serving -far more students.

-This change will eliminate -!duplicated effort and expenses -!for things like bussing, human -resources, and purchasing, -!which are currently being done -across 52 supervisor -units in 119 districts.

-Importantly, -it will reduce the inequity -I just talked about -because there'll -be more consistent leadership -and accountability.

-It also gives leaders -more levers -to pull in more students, -which means more funding.

-Instead -of having to cut a teacher -from an already understaffed -school, -superintendents -can look across -a larger universe of expenses -and resources -and make strategic decisions -with more options.

-!It also means paying attention -to national averages -and best practices.

-Now, I know -we love our small classrooms, -but data shows students -in larger classes -can and do thrive -throughout the country.

-!So let's streamline our system -so more of the money -we spend goes to our kids.

-It's time to let go -of what we think -is best and act on what -the data actually shows us.

-Best.

-To do this, -the legislature -must prioritize -drawing new district lines, -and it should be -the first order of business -for the committees -of jurisdiction.

-Without this governance -change, -!we won't give kids the Better.

-Education Act -73 was designed to provide.

-And from my perspective, -the recent failure to produce -maps was a political strategy -to preserve the old system.

-Following through -is about keeping our word -to students, -teachers, and taxpayers -who all deserve better.

-So I want to be clear -I will not sign a budget -or an education bill or tax -bill that deviates from act -73 or fails to fix -what's broken.

-Yes, it will mean change.

-And change can be hard.

-As you know, act 73 -does not call for -or mandate school closures.

-But we have to be honest, -the financial and academic -quality benchmarks -it puts in place -!will mean merging some schools -!and repurposing old buildings.

-Here's the thing.

-The status quo -is already closing.

-Schools, but it only happens -when a school is facing years -of declining opportunities -for students.

-In 2020, -when black River High School -closed, -it lost 45% of its student -population in just 15 years, -going from 167 in 2005 -to just 75 in 2020.

-When Windham voted to close -!its elementary school in 2024, -had just 15 students -and Rochester was left with -!two students before it closes.

-High school for good.

-Two students.

-Think about what -they missed out on -prom, study groups, -sports, school plays, -the things that -make high school high school.

-Yet even in these situations, -there were fierce advocates -to keep these schools -open.

-Instead of this slow, -tortuous, -and unmanaged process, -!let's move forward with act 73 -so we can manage change -thoughtfully, strategically, -and with students -best interests -at the forefront.

-The opportunities -are there for us.

-We know there are regions -all across the state that -!have lost hundreds of students -over the last 20 years, -but they still operate -the same number of buildings, -often just a few miles -down the road.

-The same amount of overhead -and administration -for far fewer students, -with far fewer opportunities.

-In some places, -we see kids from -neighboring schools -sharing the soccer field, -but for some, -it would be unthinkable -for them -to share the science lab.

-I know these -are difficult conversations, -but when we're talking about -a better future for our kids, -everything -must be on the table.

-It's worth noting -that Vermont has faced -hard choices before.

-Every union high school -in the state exists -because communities decided -that providing a better -education and saving money -mattered more than operating -inefficient buildings.

-We've also merged -elementary and middle schools -because doing so expanded -opportunity for students -and save money.

-I saw this in my home -town of Barre -in the mid 90s.

-We went from seven -smaller schools to one larger -one that now serves about 800 -students.

-It was very controversial -and really hard for some, -it meant adding a bus system -and kids -couldn't walk to their -neighborhood schools anymore.

-It took a little time -to get used to that reality, -but a couple of years later, -many wondered -why it wasn't done sooner.

-Today, Lincoln School, -where I went to kindergarten -through fifth grade, has been -completely restored, is now -a senior living facility, -and it's still an important -part of the community.

-And all the other buildings -have been repurposed.

-I went to sixth through -eighth grade -at the beautiful -old Spalding Graded School, -which was previously -the high school.

-It's now home to the Vermont -Historical Society.

-And sure, -I have great memories -from going to both school, -but those memories -and my nostalgia shouldn't -!hold back the next generation, -because as a result -of those decisions, -students had more academic -opportunities, -extracurricular options, -and social experiences, -and teachers -benefited from more resources -and better tools.

-That's the promise of act 73.

-But we must follow through.

-I want to speak directly -to teachers for a moment, -because I know you often feel -like we're blaming you -when we talk about -the need to make changes.

-So let's clear the air.

-I know you have a tough job, -and that role of teachers -has changed dramatically -since I was at UVM studying -to be a tech ed teacher.

-I know you have students -with some tough challenges -without the support -they need at home.

-I know in some schools -!you have to do more with less.

-Spending your own money -to create -!a better classroom experience, -or to make sure students -have the supplies they need.

-And I know in some -districts you're underpaid -and overworked, -having to juggle multiple age -groups, multiple subjects.

-And if it wasn't for you -stepping up -to run the afterschool -drama club -or coach basketball, -it doesn't happen -and the kids miss out.

-If we want to build -the best education system -in the nation, -!we must make sure our teachers -have what they need -in every classroom, -every district, -and every school -across the state.

-So I want to be very clear.

-We can no longer ask teachers -to go it alone, -because we all know, -and the data proves, -the most important thing -we can do for our kids -education is expose them -to high quality, -well-resourced teachers -who have the tools to grow -professionally.

-And yes, for -some of you, higher salaries -today, -there's -a $20,000 a year difference -!in our teachers average salary -from the highest paying -to lowest -paying supervisory union.

-But we can close that gap -by following -through on the district maps -required by act 73.

-Finally, making sure teachers -can choose a school -!based on the good they can do, -not the salary -they need to live.

-Better -!supported teachers are the key -to unlocking -the best in our kids.

-I saw that firsthand -when I joined longtime -Northfield teacher Mike -Gonville for Walking -Wednesdays.

-He knew every kid by name, -and you could see -he cared about all of them, -and they cared about him.

-That's -what Dick flies did for me.

-He was a bi tech head teacher -at Spalding -and a -big influence on my life.

-If you want -to see someone instantly -smile, -ask them who -their favorite teacher was.

-So I decided to ask my team -and here's what I got.

-Andrew Cobain -in American history.

-Oxbow.

-Mary Corrigan English.

-Northfield.

-Harvey Dorfman.

-English.

Burn.

Burton.

-!Patti.

Brewer, social studies.

-Mount.

Mansfield.

-John Heinz, English, BFA, -Saint Albans.

-Claire Deloria, French, -Shelburne.

-And limit all.

-Alvarez, a CTE teacher -from Brattleboro.

-And we understand she's -hosting a watch party today.

-So let's give her a round -of applause for being named.

-It gets you all new that -she was named Vermont's 2026 -teacher of the year.

-CTE has come a long ways -in the last decade or two.

-At 73.

-It's not an attack on -teachers.

-It's a recognition you're -not getting what you need.

-It's a blueprint to make sure -every teacher works -!in a system that supports you, -so you can focus on the job -you signed up for.

-Helping students -reach their full potential.

-The old system is not only -failing our teachers, -it's failing our kids.

-Just this past fall, -!The Boston Globe reported that -over the last decade, -no state fell as far -in early reading as Vermont.

-Ten years ago, -we were in the top -five in the nation -in fourth grade reading.

-In 2024, we ranked 37th.

-And the same pattern repeats -across grade and subject.

-And if that doesn't -give you pause, -here's another benchmark -from Mississippi.

-It's a rural state like us, -!but has even bigger challenges -with double -the child poverty rate.

-Mississippi -spends thousands of dollars -less per student than we do.

-And while they educate -five times as many kids, -they have roughly the same -number of districts as us.

-Now, before you start -rolling your eyes and writing -this off, you should know -today their high school -graduation rate -is higher than Vermont's.

-And on national assessments, -they score similar or better.

-Less money per student, -fewer districts, and equal -or better education outcomes.

-Trending -in the right direction.

-!Let that sink in for a moment.

-Mississippi -was once -at the bottom of the charts.

-And now, -because they're honest -about their problem and set -clear education priorities -and then follow through.

-They're making real progress.

-It's being called -the Mississippi Miracle.

-And good for them.

-We should all applaud them -for choosing to change course -and putting their -kids above everything else.

-And if you join me -and bipartisan leaders -in both the House and Senate -to push through the noise, -fear and division -and finish what we committed -to last year, -we can do the same.

-If we realign -our structure, -standards and accountability -with the number -!and needs of today's students.

-We can deliver on the real -change laid out in act 73, -in the new system.

-Every child will have access -to the same high -quality education -!and with a foundation formula, -will guarantee students -with similar needs -get the same funding -no matter where they live.

-We'll have strong early -literacy, a full curriculum -with arts, sciences, foreign -!languages and career pathways.

-!Whether a kid chooses college, -the military, public service -or the trades, -they'll they'll all be -supported and valued equally.

-For teachers.

-It means equitable pay, -professional development, -and more time to teach.

-For communities, -it means schools that attract -families, support employers -and add to the economy.

-And for Vermont, -it means a system that's -financially sustainable.

-So education costs no longer.

-Crowd out -!all the other important needs.

-I know the pressure -you're under -with calls to delay, -to water things down -or stop this transition -altogether.

-But we've been down that road -before.

-And every time -!we bend to the vocal minority, -these problems get worse.

-We didn't pass at 73 -because it was easy.

-We did it because solving -this problem matters.

-And what you do next matters -even more.

-Remember that Boston Globe -article I mentioned earlier?

-The headline was New England -schools are failing -and nobody seems to care.

-Well, I care, -and I know those of you -came together to pass act 73.

-Care to.

-So?

So let's do what's hard -and follow -through this session -to deliver on the education -promise -Vermonters -are currently paying for.

-And our kids deserve.

-In 1892, -Governor Levi Fuller -signed the vicious act, -consolidating over 2000 -local school districts -into about 251 per town.

-Ironically, -the goals all those years ago -!for the same as they are today -equal education, -!increased support for teachers -and better resources -for every school.

-You can tell by its nickname -!the criticisms haven't changed -much either.

-!If nothing else, we Vermonters -certainly are consistent.

-But they knew -then what we know today.

-A static system -will never be perfect, -and the work of education -!reform will never be finished.

-Because when it comes -!to the institution responsible -for educating our children, -we have an obligation -to constantly work -to make it better.

-If we get this right, -it will improve the lives -of all Vermonters.

-Because as I said earlier, -education transformation -is not optional.

-It's essential -to growing our economy, -to building a strong -skilled workforce, -to supporting businesses.

-It's essential -to revitalizing downtowns -and providing more housing -in the communities -that have been left behind.

-Behind.

-It's essential to making -Vermont more affordable, -keeping and attracting -more people to live here.

-Reversing our demographics -and adding more taxpayers -instead of always -looking for new taxes.

-And there's no better way -!to protect our most vulnerable -than making sure everyone, -no matter what hand -they were dealt as a kid, -has a path out of poverty -and a solid chance -to make it in the world.

-On New Year's -Day, just after midnight, -the first Vermonter of 2026 -was born -in Newport and North -Country Hospital.

-If we're lucky, -she'll stay here and grow up -among the mountains -and valleys.

-We love, and communities -that still believe -!in showing up for one another.

-She won't know the debates -we're having today, -but she will have to deal -with the choices we make -or don't make.

-If we have the courage -to finish our work, -she will enter a local school -capable -of supporting her -from cradle to career.

-Helping her -find that pathway to success.

-We can give this -to every child -in every town, -all across the state.

-All we have to do -is keep our word -and push forward -into the headwinds -that true progress -has always encountered.

-To strengthen -!Vermont for future generations -and change the fate -of this brave -little state for the better.

-Will the committee please -reassemble -and escort the governor -from the chamber.

-[applause] -Before we gavel out, I'd -like to remind those present.

-Please remain where you are -until the Senate leaves -and the Doorkeepers escort -!our guests out of the chamber.

-There being no further -business, I do hereby declare -!this joint assembly dissolved.