Excerpt from Schwarzenegger's State of the State address regarding education (January 5, 2005):

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Now, the third item relates to the education of our children.

California spends $50 billion on K through 14 education this year; that's $2.9 billion more than last year. Nearly half the state's budget is dedicated to education.

What do we get for that money? We get many wonderful and dedicated teachers. We get many children who are doing terrific.

But $50 billion, and we still have 30 percent of high school students not graduating. That is a human disaster.

$50 billion and we still have hundreds of schools that are failing. That is an institutional disaster. $50 billion and the majority of our students cannot even perform at their grade level. That is an educational disaster.

So, where do we start? We start in the classroom. We start with those who hold our children's learning in their hands. We start with the teachers.

Let me say this to every California teacher who is opening the minds of our children and nurturing their lives: I want to reward you for your hard work. I want to reward you for the sacrifices that you make. I want to reward you for the learning that you instill.

But I cannot do so under the current system. So help me change it.

We must reward, we must financially reward, good teachers and expel those who are not.

The more we reward excellent teachers, the more our teachers will be excellent. The more we tolerate ineffective teachers, the more our teachers will be ineffective.

So, in the special session, I propose that a teacher's pay be tied to merit, not tenure. And I propose that a teacher's employment be tied to performance, not just showing up.

And I want to say to every Californian who has a child: "Your child deserves a good teacher. An educational system that rewards and protects a bad teacher at the expense of a child is wrong. And I intend to change that system." My colleagues, this is going to be a big political fight. And you all know it. This is a battle of the special interests versus the children's interests. Which will you choose?

I will also introduce measures to further charter schools, vocational education and fiscal transparency so people know how every educational dollar is spent at their local schools.