INDIANAPOLIS | Gov. Mitch Daniels took a conciliatory tone Tuesday in a State of the State address that stressed bipartisan cooperation and public input on efforts to bolster public education and expand health care.

The Republican governor also made pitches for a Hoosier Lottery lease and a privately financed Illiana Expressway during a 30-minute speech that featured several friendly references to the new Democratic majority in the Indiana House.

"The cooperation that has eluded us on most occasions is now the only alternative to stalemate and paralysis," Daniels said. "If I too often did not find the words to bring it about, I will have to do better and find them now. Let me then submit an agenda for greatness built on items that might unite those who recently have found too little common ground."

Daniels went on to call for a biennial state budget that boosts K-12 education funding by at least $250 million and provides at least another $144 million to offer full-day kindergarten to "every family that wants it."

Democrats, Daniels acknowledged, first pushed for all-day instruction nearly two decades ago. They also have called for greater access to health care, the governor noted, asking lawmakers to "join hands to get the job done" this year.

Northwest Indiana Democrats welcomed the invitations for cooperation.

"I was heartened by the goals he set for the state," said Sen. Earline Rogers, D-Gary. "Full-day kindergarten and health care are proposals that Democrats have had for years. "Now we need to take advantage of the opportunity."

The governor wants to provide health insurance to at least 100,000 low-income Hoosiers and boost funding for child immunizations and anti-smoking programs by raising the cigarette tax at least 25 cents. But he didn't mention a specific tax hike figure in his speech, telling legislators "the more you raise the cost of cigarettes, the more Hoosiers can be provided coverage. I hope you think big."

That comment got a standing ovation from Rep. Charlie Brown, D-Gary, and Rep. Chet Dobis, D-Merrillville.

"If the proceeds were dedicated to health initiatives, I'd vote for a dollar (increase)," Dobis said.

Sen. Vic Heinold, R-Kouts, said the speech showed "a definite passion and vision for the state," and he was encouraged to see Daniels invite input on his plan to recruit private bidders to build and operate a tollway through southern Lake and Porter counties.

"I think the Illiana (Expressway) has to be looked into," countered Rep. Bob Kuzman, D-Crown Point. "I'm not ready to support tolls."

Local lawmakers also remain skeptical of Daniels' plan to lease the Hoosier Lottery and pour the proceeds into higher education Many legislators also were less than satisfied by the governor's brief remarks on property taxes.

Daniels said the Legislature should not penalize other causes by "using even more state tax dollars to subsidize local government spending," and that the "right answer to excessive property taxes" is more local freedom to raise other revenues.

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