In a world where college diplomas and advanced certificates are more important than ever, too many of our young people never even earn a high school diploma.

Alaska's graduation rate remains under 70 percent. As far as I am concerned, that is not a passing grade.

So tonight, I ask you to join me in achieving a new goal. Let's raise our graduation rate to 90 percent by 2020. That's the threshold for an A grade, and that's what we will strive to meet.

Meeting our goal will require raising expectations. To see the power of high expectations, just look at the success of Alaska Performance Scholarships. More than 4,600 young people have already earned these scholarships by taking more rigorous coursework.

By fully funding performance scholarships, you sent our students a hopeful message: When you achieve high standards in the classroom, we in this chamber will help you achieve your dreams.

Meeting our goal will require outstanding teachers. That's why the State Board of Education has not only raised content standards, but now will evaluate teachers based on how well their students learn.

That's why we recommend giving teachers more freedom to teach, by eliminating the unnecessary TerraNova assessment, while leaving our important standards-based assessments in place.

Meeting our goal will require a commitment to childhood literacy. Our next major initiative will be improving reading instruction for kindergarten through third grade, because literacy is a critical building block for success.

Meeting our goal will require an unwavering focus on the low-performing schools that need the most help. We have resolved time-consuming litigation, so we can get back to improving education. Instead of draining resources in courtrooms, we're investing unprecedented resources in classrooms.

Meeting our goal will require innovation. Through the promise of digital learning, we can deliver world-class instruction to Alaska's students anytime, anywhere, especially in our most rural communities.

Our efforts will include partnering with school districts and the Association of Alaska School Boards on the Alaska 1-to-1 Digital Learning Initiative, because when it comes to learning online, Alaska should be first in line.

Finally, meeting our goal will require safe learning environments. We will continue working with you and our local districts to improve school safety and security for Alaska's children.

GROWING ALASKANS' OPPORTUNITY: MORE OIL PRODUCTION

To keep the state of our state strong, let us choose a future of more oil production, not less.

Our state's prosperity has always rested on natural resources. Tonight, that foundation is at risk, not because we are running out of oil, but because we are running behind the competition.

Alaska's North Slope has billions of proven barrels, and billions more waiting to be discovered. What we do not have is a tax system that attracts new investment for greater Alaska oil production.

Our problem is not below the ground. Our problem is above the ground. One recent analysis shows a company will make substantially more, at today's oil prices, by investing in the Lower 48, rather than in Alaska.

Over the past year, Alaska has dropped behind North Dakota in oil production. If this trend continues, we will soon fall behind California into fourth place in our own country. My friends, that's not even on the medal stand!

Making matters worse, our laws give tax credits based on how much money companies spend in oil fields, not based on how much of that spending leads to production.

While Alaskans haven't always seen eye to eye on these issues, we can all see the obvious: Unless we restore balance to our tax system, our oil fields will become obsolete. We must make reforms - and we must make them now. Waiting only makes this problem worse.