Live Blogging the State of the State

6:03 - Thanks Jimmy Naifeh for his service as speaker. Also thanks Lois DeBerry and wishes her a speedy recovery

6:05 - Acknowledges Supreme Court Chief Justice, the Supreme Court has a majority of women

6:05 - Honoring "Tennessee heroes" serving in armed services to loud and sustained applause

6:06 - Recognizes Katherine Roberts of Lebanon, wife of David Roberts who serves as MP and security forces in SE Afghanistan. Also acknowledges Hutch Moore from Lawrenceburg, who commanded unit after Katrina and was deployed as 1175th Transportation Company leader in Iraq.

6:08 - 251st Military Police Company also recognized - notes deployments and asks for prayers

6:09 - Bredesen looks like he's gained some weight back.

6:10 - "Everyone knows people who fear losing their jobs, healthcare, homes ... we are living in tough times.... If it's tough for us, it's much tougher for millions of Tennesseans that we work for. Leadership happens from the front."

6:11 - Reminds assembly of principles used in 2003 to fix budget. 1. "Family budget" Honestly appraise how much money is coming in, live within your means. "Being governor is about stewardship." 2. "Always stay focused on the basics." Long-term success. Education, jobs, healthcare. 3. Bipartisanship. "As I watch our federal government struggle unsuccessfully," notes that the job is to "do the public's business" and calls for people to overcome disagreements.

6:12 - Ready to prepare budget based on cut of $900 million in "deep, difficult cuts". Notes that House passage of stimulus bill and Senate bill will probably be passed soon. "It's clear that we will have a substantial amount of money" to deal with budget shortfall. Makes no sense to do budget with cuts when we know that federal action likely to get aid out by end of February.

6:13 - "No panacea" or "silver bullet".

6:14 - No desire to push the problem back a few years. Reminder of need for long-term plan. Recognize stimulus as temporary help, and develop multi-year plan for long-term beyond 2011. "Soften the landing, not to ignore the hard ground that is there."

6:15 - "I worry about a lot of my fellow Tennesseans tonight... Jobs are so important." Concern about healthcare for the jobless - add'l people will qualify for TennCare, Cover TN will cover others. "We need a national solution for health insurance." Applause line.

6:17 - Education important priority. Both K-12 and college/university spending has grown. TN has received recognition across the nation in this regard. Need to reset NCLB benchmarks to make a smooth transition rather than putting large group of schools in failure list. Set high standards, support teachers, and "We will do just fine."

6:20 - Notes trip to VW plant - robotics but "very few people". Called it "the Ghost Hall". "The lesson here is not that factory work is obsolete." 54K employed in good high paying jobs. Focus on design, invention, logistics, programming, etc. These skills are needed more than industrial labor. "If you wanna work in a factory and build things..." it's a good thing and honorable work but "You need a good education to play."

6:22 - Focus on children's welfare. Note that kids in DCS custody has dropped from 10,000 to about 7,200. Talks about Books from Birth program success. "If I could have a third term," says he would focus on higher education. Capital investments haven't helped raise number of students with post-secondary degrees. "We have such a wealth of opportunities right now, and it would be a tragedy" to fail to use these opportunities. Time to fix colleges/universities.

6:24 - Freedom of Boards of Trustees and Regents is good, but call for working with General Assembly and Governor to fashion a "true 21st century higher education system in our state."

6:25 - Focus on job creation. "We're in a strong position right now and we need to capitalize on it." Notes VW and Hemlock successes - "a lot of interest in Tennessee right now". Low taxes, low business costs make TN a good place to go. Clean energy technology is a "toehold" where TN has an advantage. Great opportunity in all business sectors to make use of green technology.

6:27 - Call for development of a "solar institute" making TN a leader in making solar energy possible. Uses example of Cavendish Institute, Princeton, Bell Labs, etc. "Solar power today is a tiny part of the power equation". Ripe for breakthroughs. Cellulosic ethanol leadership already established. Photo cell leadership, as well as research tools in Oak Ridge. Sees green energy leadership potential as a long-term opportunity (Al Gore must be smiling!) to take a leadership.

6:30 - Will send "conservative" budget in March. Sound and well-managed state will be passed along to the next governor and the next legislature. "I ran my company better when times were tough."