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- [Announcer] Here's anchor and Senior Capitol Correspondent, Tim Scubick.

- Welcome to Michigan Public TV's live coverage of Governor Gretchen Whitmer's third State of the State address, which will be unlike any other we have ever seen before.

First of all, this State of the State is smack dab in the middle of a deadly COVID pandemic that is still taking lives, over 15,000 in Michigan so far and counting.

Secondly, this speech is normally delivered to a joint convention of the Michigan House and Senate with hundreds of persons in the House chamber.

But because the governor concluded that would be unsafe vis-a-vis COVID, the governor will deliver this address by herself, without an audience.

Thirdly, republicans remain highly critical of the way this governor has, "unilaterally "handled this virus, with restrictions "on businesses that the republicans "simply do not like."

She explained, she did it to save lives.

Republicans this very day took action against the governor by blocking 13 of her appointments to commissions and boards in retaliation for what she's done on COVID and the Michigan House rejected her $5.6 billion package to spend federal dollars on COVID.

Not exactly a good way to start a bi-partisan speech.

(upbeat music) - Hi everyone, This is Lieutenant Governor Garlin Gilchrist.

This year the State of the State address will look a little different, so we can further protect our communities from COVID-19.

We want to thank all of you who are doing your part to protect yourselves and your families from this virus.

Your action is saving lives.

Now, I'm proud to introduce some more Michiganders who have done their part this year.

- I'm Beth Monicatti-Blank, President, All Seasons Communications.

In 2020 our clients eight consumer shows were canceled.

This is a large portion of our work.

We were able to receive multiple grants through Macomb County and the Michigan Economic Development Corporation.

We were able to keep our staff busy, as well as create lasting social media and website programs for many in the county.

The grants gave us the opportunity to reflect on the situation and breathe much easier.

- My name is Jerry Ruffin.

On one bad night in 1994, I had a run-in with police and ended up spendin' all of my 20s in the Michigan Department of Corrections.

This was the first and only time in my life where I had police contact for a felony or a misdemeanor.

I've been free since 2003 and I have made the best of my time.

I have a Bachelor of Science in Human Services and a Master of Public Administration in Criminal Justice.

A clean slate for me could mean opportunities with state and local governments assisting with restorative justice issues, probation, parole or helping to curb community violence.

I would like to thank Governor Whitmer, the bi-partisan team of lawmakers and the numerous organizations and bodies that made this happen.

We really got it right this time.

- My name is Kristen Jones.

I own two cars, I have a clean driving record with no accidents.

Louis Chain wanted $500 a month to insure both of my vehicles.

But, through the bi-partisan auto insurance law that Governor Whitmer signed I decided to take my chances and go without coverage.

I was willing to take that risk.

But, at midnight when Governor Whitmer's new law went into effect, I went online and signed up for coverage.

Now my rates have dropped by nearly $400 a month.

- My name is Katie Monahan with General Motors.

I'm a manufacturing engineer, but I'm also one of the 5000 General Motors employees that volunteered to make face masks.

I'm lucky that I've been healthy and able to spend 150 hours right here making over 40,000 masks.

That's a tiny fraction of the over seven million GM has donated to local hospitals, first responders and schools across Michigan.

GM stepped up and worked with the state of Michigan to help during this crisis and I'm proud to have been a tiny part of that.

When I look to 2021, I'm hopeful.

Thank you, wear a mask and stay safe.

- I am honored to welcome all of you from my hometown of Detroit.

Last year was tough.

There's no doubt about it.

But, when our backs were up against the wall we saw some truly remarkable things as Michiganders stepped up in incredible ways to help each other.

When we do things together we are unbreakable.

Thanks to the conviction, work ethic and resilience that fuels the soul of every person in our state.

Now, it is time for us to look forward together to write our next chapter.

So, as the President of the 101st Legislature, I officially call the 2021 State of the State address to order.

Please allow me to introduce my partner, the 49th governor of the great state of Michigan, Governor Gretchen Whitmer.

- Good evening.

Last year I gave my second State of the State Address in the House chamber here in the capitol.

Like much of the last year, this State of the State is different because it has to be.

Tonight it's just me and a few people in my capitol office.

And while it's different, it's an opportunity to speak directly to you, the people of Michigan, about the past year and our priorities in 2021.

Now at the risk of losing you in the first minutes of this speech, I'm gonna use a Latin phrase, annus horribilis, a year of horribles.

Before I tell you more take comfort in knowing that tough years like 2020, our annus horribilis, are usually followed by great years.

And yes, there's a Latin phrase for that too, annus mirabilis.

2020 was a tough year despite incredibly hard decisions and dangerous threats, I know my burden has been lighter than many.

This year didn't pan out like any of us wanted or imagined.

It required compassion and strength and a lot of Michigan grit.

First, let's remember the Michiganders we've lost to COVID.

Every day I think about the people who lost loved ones to this virus, those who said goodbye to their parents over Zoom because it was too dangerous to go to the hospital.

The spouses who sleep alone for the first time in years, the Michiganders who still haven't properly mourned.

I think about my friend, Sheriff Benny Napoleon, who spent a lifetime serving the people of Wayne County.

We've lost 14,411 Michiganders to COVID-19.

14,411 people with stories, with loved ones, parents and siblings, children and friends.

Throughout this crisis the people of Michigan have harnessed the empathy and courage that make us who we are as Michiganders.

The state of our state is resilient.

In the spring we followed the guidance of public health experts.

We took a fact based approach to fighting this novel virus.

We flattened the curve together.

We saved countless lives.

Businesses, like Detroit Zone stepped up and retooled their machinery to manufacture masks and hand sanitizer, gloves, ventilators.

Front line workers in our hospitals, grocery stores, childcare centers, Post Offices, police and fire departments, and so many others put their lives on the line to protect us.

Our state employees like corrections officers and sanitation workers provided crucial services and the vast majority of you did your part in the midst of the worst public health crisis in our lifetimes.

The world saw just how tough Michiganders are.

When we get knocked down we dust ourselves off and pull each other back up.

This past year we confronted historic converging crises, a worldwide pandemic, the recession it caused, a 500 year flooding event, a nationwide call against racial inequity and a deeply divisive election.

And together we took action.

The Michigan House recently elected new leadership.

I wanna congratulate Speaker Jason Wentworth and democratic leader, Donna Lasinski, and welcome back the Senate leaders, Leader Shirkey and Leader Ananick.

Based on the political environment this past year, you might think republicans and democrats in Lansing can't find much common ground on anything.

But, the reality is despite all these crises, and the gridlock in Washington, we took real bi-partisan action to get things done for you and your family.

I signed two bi-partisan budgets, balanced budgets, that prioritized public schools, public safety and public health.

We worked together on the bi-partisan Michigan Reconnect Program.

That's tuition free job training and community college for adults looking to earn a post secondary certificate or Associate degree.

Thanks to Senators Ananick and Horn and Representatives Anthony and Frederick, for their leadership on this.

And bi-partisan Clean Slate legislation making our criminal justice system more fair and expanding opportunities for Michiganders who've served time.

I wanna thank the bi-partisan group of legislators who helped get this done and the Michigan Legislative Black Caucus for all the work they have done on criminal justice reform.

Let's tap into that same energy and end the pandemic, revitalize our economy and get our kids back in school.

Let's make good use of this non election year and work together.

After all, we're Michiganders first.

I know the Biden administration is deeply committed to following science, protecting public health and building our economy back better.

I'm eager to work with President Biden, Vice President Harris and our congressional delegation to end this pandemic and ramp up our economy.

And I'll continue to reach out to republicans here in Lansing.

While common ground seems less and less common these days, it's never been more important that we work toward it.

I know you're used to me saying, fix the damn roads.

This year, let's also fix the damn road ahead.

Let's find common ground to grow our economy, get families and businesses back on their feet.

It starts by ending the pandemic.

The health of our economy is inextricably linked to the health of our people.

Effectively rebuilding our economy this year requires that we protect public health.

And that hurdle is cleared easier and quicker if we work together.

A governor's primary responsibility is the safety of the people of her state.

During the worst public health crisis in history we protected and expanded healthcare access in Michigan.

I signed bi-partisan legislation to end surprise billing so Michiganders don't get charged out of the blue for care.

And, we worked to address the high cost of prescription drugs.

Prices for life saving prescriptions have skyrocketed forcing people to choose between getting their medicine, paying rent or buying food.

Last year I announced a prescription drug task force, and just yesterday they announced their plan to lower costs and increase drug price transparency.

Members of my cabinet worked with a bi-partisan group of leaders and legislation that insures accountability and affordability to help Michigan families.

Many thanks to Senators Brinks and VanderWall and Representatives Witwer and Kuppa and former rep, Vaupel, for their bi-partisan work on this.

Let's get this on the Legislature's to-do list.

During World War II Michigan became the arsenal of democracy, building tanks and bombers to defend freedom and crush fascism.

This year we stepped up as the arsenal of health manufacturing masks, ventilators and PPE, and we were the epicenter of hope when the world watched the Pfizer vaccine roll out of Portage, Michigan.

Since the beginning of this pandemic the state partnered with health insurance providers to waive costs for testing and treatment.

And we have performed over 9.6 million COVID tests, which makes us 7th in the nation.

That is thanks in large part to the brave women and men serving in the Michigan National Guard.

They helped with COVID, floods and threats to our safety.

As Commander in Chief of the Michigan National Guard, I wanna formally acknowledge our Adjutant General, Paul Rogers, for his leadership.

Our action saved lives, especially in our most vulnerable communities.

Early on, Dr. Janeigh Khaldun, or Dr. J, as you've heard me call her, saw the disparate impact COVID was having on communities of color.

By acknowledging this we not only saved lives in Michigan, but around the country as other states learned from us.

Lieutenant Governor Garlin Gilchrist chaired the Michigan COVID task force on racial disparities, focusing on education, testing and outreach that further saved lives.

Michigan leads the nation in reducing racial disparities of this pandemic and the Biden/Harris administration established its own COVID equity task force modeled after ours.

Dr. J and her team have led our effort to get Michiganders vaccinated.

Despite many challenges we have made great strides.

We've prioritized our brave healthcare workers, our educators, seniors and vulnerable populations most at risk, and we created the bi-partisan Protect Michigan Vaccine Commission to insure we get this right.

We are now in the second wave of distributing safe, effective vaccines.

Michigan has administered over 800,000 vaccines which makes us 6th in the nation.

The number of vaccines we have administered have surpassed the number of recorded COVID cases in Michigan.

I know people are anxious and ready to get the vaccine.

That's a good thing.

The fact of the matter is we don't have the supply we need yet.

But we will, and the good news is that we do have a plan to get 50,000 shots in arms per day when the supply comes in.

Every eligible Michigander who wants a vaccine will get one.

This process is like a locomotive.

It'll be cumbersome and slow in the beginning, but it will get faster and smoother as we go.

I just ask for patience as our front line workers work around the clock to get shots in arms.

Our medical objective is to vaccinate at least 70% of our population, ages 16 and up, as soon as possible.

The quicker we do this, the quicker we'll have the normalcy we all crave, family gatherings, travel, graduations, concerts and more.

In the coming months the vaccine will be available to the general population.

When very little seems in our individual control, the act of getting a vaccine is.

And as we fight the new variant of the virus we must all continue to wear a mask, practice safe social distancing and avoid indoor gatherings.

The good news is we know how to fight this virus.

The coming months will determine the strength of our economic recovery.

Let's end this pandemic.

Make your plan to get vaccinated and keep wearing your masks until this pandemic is over.

Let's join forces to jumpstart our economy.

That means protecting small businesses.

This pandemic has taken a massive toll on our small businesses and the people they employ.

Where the federal government failed, we the states, stepped up.

Last month I signed a bi-partisan $106 million relief bill that directed $55 million to help small businesses impacted by COVID, including restaurant owners who've made incredible sacrifices to keep their communities safe.

And last week I announced the Michigan COVID Recovery Plan, distributing vaccines, getting our kids back on track and supporting small businesses to jumpstart our economy.

My plan includes a call on the Legislature to permanently extend unemployment benefits from 20 weeks to 26.

This would bring Michigan in line with 40 other states and provide hard hit Michigan workers with the financial security and peace of mind they deserve.

My plan gives crucial support for small businesses and resources to help them thrive long after the pandemic is over.

It helps businesses like All Seasons Communications in Macomb County, owned by Beth Monicotti-Blank.

I invite the Legislature to partner with me in the health of our people, the education of our kids and the resurgence of our economy.

Let's get the MI COVID Recovery Plan passed immediately.

Our economy demands every child has a great public education.

Despite the budget crisis caused by COVID, we worked across the isle to support our public schools.

I signed a bi-partisan budget that protected our kids from school cuts and took another step towards a weighted funding formula.

That means additional support for students with special needs, economically disadvantaged students, and English language learners.

COVID exposed deep inequities in our education system.

Many students and educators in rural or low income communities lack the technology access fundamental for remote learning.

That's why my budget proposal next month will continue building upon the weighted funding formula.

Like everything else, COVID has disrupted our kids' education.

I see it in my own kids' experience.

There are students in Michigan who have not been in a classroom since March 13th of last year.

The pandemic stole more than 10 months of in-person instruction and support.

I set a goal for all schools to offer an in-person learning opportunity by March 1st.

We've seen, by following the safety protocols this can be done successfully.

I'm reconvening the members of the Return to School Advisory Council.

By spring, this group will provide guidance to policymakers districts and schools about how to best promote comprehensive recovery.

And my budget will fund academic recovery, school infrastructure improvements and support for students physical and mental health.

And I wanna say thank you to our incredible educators, administrators and support staff for their dedication to our students throughout this pandemic.

In gratitude, next month we will reward MI Classroom Heroes grants, up to $500 each for teachers and support staff.

These grants will offset some expenses and acknowledge their extraordinary efforts.

In addition to MI Classroom Heroes we owe a special thank you to front line healthcare workers, including direct care workers who provide nursing and healthcare for seniors and Michiganders with disabilities.

We gave these heroes $2 an hour increase.

I worked with the Legislature to extend it for months, and then for a few more months.

Now, it's time to make that pay raise permanent, because it's not enough to say thank you.

We need to show support.

This is one of the reasons why I created Futures for Front Liners, modeled after the GI Bill after World War II.

Tuition free, post secondary education opportunities for the heroes on the front line of the pandemic.

Our front line workers, healthcare workers, grocery store employees, childcare workers, janitors, and everyone who stepped up to protect us.

They are heroes.

They stayed at work so the rest of us could stay home and they earned our full support.

More than 82,000 front line heroes have been accepted into the program.

That's over 82,000 lives that could be changed as a result.

82,000 people who will enhance their skillset and earn higher wages.

Paths to skills are important, but we must insure there are good jobs for Michiganders at the end of the path and we've been hard at work.

Since I was sworn into office we've announced more than 11,400 auto jobs at GM, Ford and FCA.

Our auto industry helps drive our economy and insures good paying jobs for hard working UAW members and their families.

One of my top priorities this year is growing more great jobs for Michigan workers.

Today I'm announcing Michigan Back to Work, my plan to help us grow our economy and get Michiganders back on their feet.

We're gonna leverage all the resources of state government to rebuild our economy back better, working with leaders and state and federal government, business and beyond to grow good paying jobs in Michigan.

Over the next year we will announce initiatives and projects big and small, from tech, mobility, manufacturing growth to clean energy and road construction.

This will protect, grow and create more good paying jobs.

It's also time for the Legislature to take action extending good jobs for Michigan legislation, to retain and grow our businesses and create good jobs.

You might not know this, but Pfizer was the first business to utilize Good Jobs for Michigan.

They built their sterile drug manufacturing plant and created 450 good paying jobs in Portage.

Passing this legislation will be good for our families, our economies and our businesses.

Let's get it done.

Growing our economy requires continued focus on our infrastructure.

The long infrastructure saga in Michigan impacts our ability to safely navigate our roads without spending hundreds of dollars each year in vehicle repairs.

While we had to focus on the virus, we proved we can chew gum and walk at the same time.

And a lot has happened.

Last year I announced the Rebuilding Michigan Bonding Plan to create and sustain tens of thousands of jobs and start fixing the damn roads without an increase at the pump.

Because better roads mean better jobs.

Even combating COVID we moved a lot of dirt.

In Lansing we completed the I-496 Rebuilding Michigan Project, with hundreds of more projects on the horizon including heavily traveled sections of I-96 in Oakland County, I-69 in Calhoun County and I-94 in Berrien County.

And just days after the May flood in Midland, our incredible MDAT workers rebuilt a crucial bridge on US-10 in record time.

Hard working union construction workers, the laborers and operating engineers got this done safely in the middle of a pandemic.

Thank you.

We're gonna forge ahead rebuilding our roads in 2021 to protect our families and keep more money in Michiganders' pockets.

As for your local roads and bridges, last session legislation was introduced to give local communities more options so they can move some dirt, too.

It's a good idea and it's time for the Legislature to get it done.

We've also kept moving forward on water infrastructure.

Last year I announced the Michigan Clean Water Plan, a $500 million investment in Michigan's water infrastructure, direct dollars to communities for safe, clean water to residents, and it supports over 7500 Michigan jobs.

It's time for the Legislature to pass these bills so we can start rebuilding Michigan's water infrastructure.

I'll keep working so every family in Michigan has clean, safe water.

We still have a lotta work to do, to join forces, to end the pandemic and grow our economy.

In 2020, thanks to the hard work of Secretary of State, Jocelyn Benson and Attorney General, Dana Nessel, Michigan held a historic election.

Secretary Benson ran a fair and secure election of which we should all be proud.

Attorney General Nessel defended our votes despite attacks from across the country.

They, along with our local clerks and staff at the Secretary of State and Attorney General's offices, should be immensely proud.

And yet we know the deep divisions in our country are present here in Michigan, too.

This year I will launch a fixing the damn road ahead tour to engage with and listen to Michiganders, young and old, republicans, democrats and independents, from Lake Superior to Lake Michigan to Lake Huron to Lake Eerie and everywhere in between to focus on what unites us, improve how we talk to each other, and together we'll fix the damn road ahead.

My mission is to find common ground so we can emerge from this crisis stronger than ever.

When we rang in the new year on January 1st, 2020 we had high hopes.

We made resolutions, planned trips.

In my case, a high school graduation with our families and friends.

It's easy to look back on this last year and focus on the bad, but we cannot forget the action we took to protect ourselves and our families.

To those of you who stepped up and did your part, listened to medical experts, stay home, wore a mask, helped out a neighbor and practiced social distancing, your actions saved lives.

Your action insured more Michiganders will be able to spend Thanksgiving and Christmas 2021 with their loved ones.

On behalf of the entire state of Michigan, thank you.

Now, to the legislative leaders tuning in, our job now is to fix the damn road ahead together.

Let's commit to the strong bi-partisan action we took last year and focus that same energy to end the pandemic, grow our economy and get our kids back on track.

The people of Michigan are counting on us.

Here's to an annus mirabilis, a great year.

Let's get it done.

(upbeat music) - Well, there you have it.

Governor Gretchen Whitmer's third State of the State message and we said at the top of this program that this would be a speech like you had never seen before for a number of reasons, and let's find out what some of those reasons are as we now ask our esteemed panel to give me a headline out of this speech.

Mr. Stokes, let's start with you.

- Governor Whitmer seeks common ground for Michigan in third State of the State.

- Mr. Ballenger.

- Whitmer puts best face possible on disastrous 2020, looks ahead.

- That's almost a paragraph, Mr. Bellenger.

We're lookin' for a headline, okay.

(laughing) And Kathy, please.

- Well I'm gonna repeat what chuck said, that Whitmer looks for common ground, but add republicans say no thanks.

- Chad.

- State of the State?

Lansing in complete dysfunction.

- Well, let's pick up on that because the news media is noted for always emphasizing the negative, but I mean really, this was, let's put in context this speech of what happened today in our town.

As we said at the top of the program, in the Michigan Senate the republican senators blocked 13 of the governor's appointees to boards and commissions in retaliation for her COVID policy.

Over in the Michigan House, her %5.6 billion program to spend federal dollars on COVID was cut by $2 billion by republicans.

And so, let's put this in context.

Kathy, what does this mean vis-a-vis the governor getting what she wants with the republicans, not showing bi-partisan cooperation on the eve of her speech?

- Well, they definitely sent a message today about common ground, that they're not going to provide any common ground until she starts talking with them more, until she starts taking her COVID restrictions and lifting them completely and they're, they're just not gonna play ball at this moment.

- Chad.

- Tim, they blocked the appointment of the ombudsman who oversees investigations when children in Michigan die.

That's what they did today.

That was one of the appointees, Suzanna Shkreli, that got blocked from the Senate republicans today.

That's how serious they are.

They're willing to stop a big oversight of CPS cases and kids in wealth in foster care in order to really go to the mat here with the governor over these COVID restrictions and her continued use of the public health code that hasn't, we should note, been on the books for almost a century.

- Chuck.

- Tim, the governor ended her speech by fix the damn road ahead, but what the Legislature did today, particularly from the GOP side, was throw all sorts of roadblocks in that road to get in the way of that.

And they're going to make it extremely difficult.

This continues to be a battle over policies, politics and power in Lansing between the Executive Branch and the Legislative Branch.

- Mr. Ballenger.

- Well Tim, everything that's been said here in the last couple of minutes by my colleagues is really related almost as much or more to things that happened today that had nothing to do with the governor's speech tonight.

You asked for a reaction to the speech.

But, I think they're right.

I mean, the fact is the republican majority of the Legislature is mad as hell and they're not gonna take it anymore and everything they did today in the backdrop, which I think she was counting on most people not even knowing about at the time she's giving the speech tonight, is set up to indicate what a hurdle she has to clear.

She spent a lotta time in her speech talking about bi-partisanship, but I think the republicans are saying, enough already, let's walk the walk, governor, as well as talk the talk.

Prove that you will actually work with the Legislature for the first time in your tenure as governor of Michigan.

- Does anybody on the panel believe that there was a discussion within the governor's inner circle today with this major question?

Do we respond to what's just been done to us, or do we ignore it, the elephant in the room, put forth our positive agenda, and not bring the people in the loop on this?

You could argue that case both ways, could you not, Chad?

- Yeah.

One thing we didn't hear from the governor tonight is any kind of articulation of a policy about why we have these existing policies.

She did not address the brew ha ha right now of high school sports, that the Legislature is really trying to prosecute.

She didn't address you know, she didn't even really talk about the surge or the pause.

I don't think I saw the word depause has worked, which has been the emphasis the last few weeks in the leadup to this coming Monday's reopening of bars and restaurants.

So, there wasn't a general defense of the COVID policies.

There was a lotta talk about all the things that they have done together.

You have this extraordinary roll in video what was featured into everyday of Michigadians talking about some of Gretchen Whitmer's policies.

One of 'em was the auto insurance no fault reform.

That was clearly aimed at the Legislature to talk about, you know, send a message that hey, we have done big things together.

Remember back in 2019 when we were all in the porch of the Grand Hotel, the Makin Island havin' a big kumbaya moment?

Because ever since then it's been kinda downhill.

- Kathy, would it have been risky for her to take this on head on in a statewide address and air all that dirty laundry for everybody to see?

- Oh absolutely, absolutely.

She wants to, she wants to project the strength of what has happened in the past year.

She doesn't wanna concentrate on the fights that she's having with the republican led Legislature.

And I mean, she very easily could have said, you know, come on guys, we gotta do something.

But, that's not what this speech is for.

This speech is for a vision of what's going to be happening in the future, what they can do together, whether or not that's gonna happen is a totally different subject and it's not the time to take that on in a State of the State speech.

- Mr. Ballenger, confront it or ignore it?

- I think you ignore it.

Tim, I think you're right.

I think they had this kind of discussion today in the Executive Office.

They had to.

But, I think they decided we're gonna take the high road, we're gonna be visionary, as Kathy says.

We don't wanna litigate and fight this in front of the cameras, in front of the people of Michigan at the one moment in the entire year when I have a chance to address everybody about what I wanna do going forward.

- Chuck, your two cents worth.

- I think you're absolutely right, Bill.

I think that there were probably a couple names that came up maybe in their backroom discussions.

One was I think they reached back and you might have heard the words, Michelle Obama, and somebody may have said when the GOP Legislature goes low on us we're gonna go high and you heard at the end of her speech she reached out to the current President of the United States and she said we're going to build back Michigan better, which is part of his slogan.

So, I think she purposely made her speech, the majority of it, talking to the people, the average people in Michigan.

She realizes that she still has a pretty high favorability rating here in Michigan.

She wanted to address those constituencies that have been with her, the school unions, the education community.

That has been her backbone and the people that have really worked hard and supported her down the line.

But, she did extend the olive branch and say, I'm willing to work with everyone.

Now, that's met with resistance and it probably will continue to be.

But I think she was right in terms of your message tonight is to stay on the high road and to appeal to the entire state of Michigan and not so much the politics in the Beltway in Lansing.

- One could make the case if you listened to the speech that you could have thought this was the year 2022.

This almost sounded like, this is all the good stuff that I have done.

She maybe is a year premature with the litany of all the good stuff that she's done.

Am I off the wall here guys on this, or not?

- No, I don't think you're off the wall.

No, you're not off the wall.

- Chad, would you write that story or not?

- Would I write the story next year?

- No no, will you write the story for this?

(group laughing) I know the story you're writing next year, man.

(laughing) Help me out here.

- They could just, they could definitely dust this speech off in a year from now.

But, only if she can say we defeated the pandemic a year from now.

I mean, that is, I mean, people have given her a benefit of the doubt a long time throughout this pandemic because they see these cases surge.

I mean, people, you know, the Senate majority leader likes to say that he wants to inspire people to take, take these you know, these safety measures and Gretchen Whitmer is just basically cut people off from going to the restaurants and going to the movie theaters because then she has a different philosophy here, that people can't necessarily be inspired to not go to the movies, they have to be told they can't go to the movies.

And it's a completely different way of looking at life in governance.

And now, she didn't talk about that tonight, but that's gonna be the, that's a challenge ahead here for her to really show end results and that's why everything rests on this vaccine and getting that goal of 70% of the population 16 and over.

That is the metric that she has set, the bar that she has set, a year from now we're gonna sit around this table, hopefully we'll actually sit around the actual table, and discuss that exact metric.

- Kathy.

- Well, I mean, the 2022 elections was certainly on the mind of republicans today, with the actions that they took.

So I mean, the 2022 elections have been on the radar for far longer than just tonight and before.

It's been going on for a long time.

So sure, this is, this is a good speech for her and her re-election chances, although she hasn't come out and announced yet that she's running for re-election, we're all just assuming that she's going to do that.

But, the republicans are absolutely thinking about 2022 right now and a lot of stuff they're doing is geared toward that.

- All right, let's put a positive spin on this, Bill.

What happened today, we tend to look at what happened today, but let's draw this out.

I don't believe there's going to be a stalemate on how to spend federal COVID dollars.

This may be just the opening overture to the dance and we're making too much out of this, that look it, in a couple of weeks we may sit around this table or at least around this Zoom thing, and say to one another, see, it wasn't as bad as we thought it was.

They actually did get together.

Play to that angle of the story.

- Well, last week you had a discussion on your panel about this and I remember Johnathan Oosting saying, hey look, the money's gonna get spent, let's start with that.

And I think that's right.

I think it will be spent.

The question is how's it gonna be spent?

How much of it is gonna be spent?

Is the governor going to have to make concessions?

You've gotta realize the legislative republicans are saying, if we're gonna give you the money, governor, you gotta back off with your ability to unilaterally in an authoritarian way dictate exactly what stays open, what's closed, when you open, when you don't.

We wanna turn it over to local health departments and have some metrics decide this.

That is where it's really gonna matter, what happens.

So yeah, the money is gonna get spent.

There is no way that the Legislature would allow all this money that's coming in from the federal government and that is in state government coffers to go unspent in the face of this terrible, terrible pandemic.

But, they're going to demand a pound of flesh, which they think is a long time coming.

- Chuck.

- I think you're right.

You know, going from a $5.6 billion relief plan to a $3.5 billion, that's a big gap to make up.

So, each side is stake their turf out.

They're going to fight.

They're going to negotiate.

In order for the governor to get the legislation that she outlined at the end of her speech through, she will have to find common ground with the Legislature.

It's about how you do it.

What is she willing to give up?

What is the Legislature willing to give up?

And so, they get to that point where they can walk out one day and say okay, we've reached an agreement.

But, this is also, make no mistake about it, this is a challenge by the GOP to the governor's executive power, and when have any of us ever seen any governor, democrat or republican, ever want to give up any of the power?

The only time you wanna do that is when you're sitting in the Legislature trying to get to the Executive Branch and then when you get there, all of a sudden you say like, oh no, well no, I don't wanna give that, not without a fight, because they are clearly challenging her power and trying to shift it more to local control.

So, it's going to be a battle and whether or not we see it out front or they do it behind closed doors, it's going to happen.

But, both sides have a very good interest for the common good of the people to be able to find some kinda common ground at some point.

- The optics of this now for the governor are very clear.

She does not want to give the impression that based on what happened today that now she's gonna fold, that she's gonna, use her term, I will not be bullied.

So now the optics here of both sides now have to find that way to save face so that they can eventually, Chuck, come to that table and say we do have a deal.

And clearly, we are not there yet, but I'm the eternal optimist.

I think given the situation we're in, Kathy, I think they'll eventually get there.

- Well, I think so too, because you know, for one thing the republicans don't wanna be, they're going to be portrayed as holding school funding hostage over a, excuse my language, a pissing match, with the governor.

And you know, this is, this is a lot of money for schools that is going to be held back if she doesn't capitulate.

So, it goes both ways.

They've gotta find, they've gotta find compromise somewhere, because they're both gonna end up looking bad if they don't.

- Chad.

- In small town Michigan there's two people who hold a lotta sway with House republican legislators.

It's local superintendents and it's their local hospital CEO.

Those two people can call them up and really give them a lotta hell and grief if they hold up like the $250 a kid in immediate aid, especially for school districts that are struggling to to fill sub jobs and keep teachers in the classroom and manage you know, just manage the additional local level chaos of quarantines and such.

And so, and then you've got hospitals that's you know, just barely made it through last year and another surge in the spring or early summer could spell additional problems for these rural hospitals.

That'll get legislators moving.

- All right, we do have a Republican Response that runs about two minutes and of loose change.

Let's listen to what the republicans from the Senate have to say.

Roll that tape please.

- Hi, I'm Mike Shirkey.

Senate republicans are proud to share with you our priorities for this new year.

Our priorities are guided by this mission statement.

Every Michigander deserves the opportunity to live and prosper in a safe, healthy community.

Senate republicans are committed to building on opportunities to give Michigan families and communities greater peace of mind about the future.

And we are committed to... - Protecting Michiganders against COVID-19.

- Protecting the lives and livelihoods of every Michigan family.

- Supporting seniors to live healthy and independent lives.

- Increase and improving access to mental, physical and financial health resources.

- Making healthcare more affordable.

- Insuring our communities are safe, secure and connected.

- Making Michigan a welcoming home for new and existing businesses.

- Promoting economic freedom for hard working taxpayers.

- Harnessing our home grown talent and attracting new talent.

- Preparing today's students for tomorrow's workforce.

- Making Michigan a leader in sensible workplace safety measures and emergency preparedness.

- Building a smarter infrastructure system.

- Delivering targeted relief and reducing costs to help family businesses get back on their feet and keep their doors open.

- Passing a responsible state spending plan.

- Getting our students and schools back on track.

- Restoring balance and state government to insure all Michiganders have a voice in the laws and policies of their state.

- Removing obstacles preventing individuals from pursuing a meaningful purpose for themselves and their families.

- Insuring confidence in our elections.

- Affirming Michigan's reputation for unparalleled natural resources.

- These are our commitments to the people of Michigan.

To see how we're doing and hold us accountable follow us on Facebook and Twitter.

God bless you, and god bless our great state.

(upbeat music) - Mr. Ballenger, your reaction.

- I thought that was really good.

I mean, it gave a lot of people a chance to say something very quickly and I think they were very effective.

That's about as good a response as I think you're ever gonna hear.

- Kath.

- You know, it was fine.

It reflected some of their priorities.

They certainly didn't have any specifics though, and I don't know how much specifics you can give in two minutes.

- Tim, that's not your normal republican response where a member stands in front of the camera, gives like a two minute speech.

That was, that was an infomercial for the House republicans caucus with everybody, you know, a couple second clip there.

So, not, not a very detailed response.

And one thing we oughta bring up is the relationship between Governor Whitmer and Senate Majority Leader, Mike Shirkey.

Whitmer's folks do not trust him for a minute.

And that's because of all the things that come out of his mouth and he's done.

This recent incident where he acknowledged meeting with militia groups and helping them on their messaging.

He's not been, he hasn't answered questions about this from you know, anybody in the Capitol Press Corp that I'm aware of.

And, and that is really a sore point that is going to blow up all these you know, potential kumbayas that might happen.

'Cause that relationship still very very tenuous at this hour.

- When I talked to the governor yesterday in anticipation of the speech, she conceded that the relationship in the Senate needed some work, which, Chuck, would be an understatement, and that is an X-factor in all of the stuff that we've heard here tonight.

If Mr. Shirkey decides that he doesn't want to play ball with her, game over?

- Well you're absolutely right.

She needs both houses of the Legislature to be able to work with her.

She can play 'em against each other as much as she wants.

She'll have to figure out her best strategy here.

But, she has to find some common ground.

And they have to come together.

It's not going to be easy, but she wants to be governor again I'm sure, is eyeballing a second term and before this year is out it's gonna be time to start seriously looking at re-election time.

And there're people in the Legislature who are either going to want to challenge her and move from the Legislature to the Executive Branch, or be able to at least go back to their constituencies and say, this is what we got out of this governor who we've been going to war with.

So, it's going to be back and forth.

I think in terms of the presentation that they made, it's probably the best you can do in this virtual world that we're in now.

Just put some of your members' faces out there very quickly, but they are going to clearly do their talking in the Legislature on the legislative floor or virtually, because we don't know when they're gonna get back to physically being there all the time.

But, that's where they're gonna do their serious talking.

But, they're gonna start at different ends and they've gotta start workin' their way towards that middle.

- And Bill, the X-one factor is the new Speaker of the House, Mr. Wentworth, who is an unknown quantity to this governor.

She says, I've had a couple of conversations with him.

We have something in common.

He has three daughters, I have two daughters.

She says, I think we can work together.

He's important here, too, is he not?

- He is very important.

The question is, how different is he gonna be from Lee Chatfield, his predecessor, with whom I think Whitmer arguably had a better relationship than she's had with Mike Shirkey?

Shirkey continues, but now you got a new kid on the block.

And from what I've seen, I think Wentworth may be a little tougher nut to crack for Gretchen Whitmer.

I know she's hoping he won't be, but I think he's gonna be a little tougher than she thinks he's hopefully gonna be.

- I did see something last week that gave me pause to read the tea leaves.

We had the governor come out with her program.

Mr. Shirkey used his press release to take on the governor.

Mr. Wentworth sent his floor leader with a press release with a comment, which either he's decided I'm not gonna get into this kinda match that we have going on with Mr. Shirkey and the governor.

I'm gonna lay back a little bit.

I don't know, I didn't get inside the guy's head, I didn't get a chance to ask him, but is that a possibility that he'll take a different tact there, Chad?

- Yeah, I mean, we just saw this morning with Representative Thomas Albert, Chairman of the House Appropriations Committee, laid out the GOP $3.5 billion plan.

Yeah, he's the appropriations chairman, but he was clearly the person sent out to go sort of on the attack against the governor's plan first and then try to tout their plan.

They weren't putting the speaker out and that may be strategic.

- Kathy, have you written your first paragraph for the New York Times?

Give us a hint.

(laughing) - Well, you know, it's pretty predictable that Governor Whitmer is looking for, looking for common ground, looking to work with the Legislature and the republicans are having none of it.

But, as far as Jason Wentworth goes, you know, he's been fairly critical of the governor right off the bat.

He gave an interview to a TV station that was pretty critical called, her calling for a mask mandate a publicity stunt.

And also, you know, when they came out and said that wanted to ban guns in the open carry, in the capitol, that he was gonna have none of that either.

So, there's already some, there's already some tension.

- Okay, thanks.

I'm sorry to interrupt, I gotta get outta here.

Thanks to the four of you.

Thanks to all of you who watched this State of the State.

Join us on Off The Record for more analysis then.

Goodnight.

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