Tonight in his fourth State of the State address, Gov. Mike Easley called on the General Assembly to launch the nation's most ambitious education initiative that would allow students to earn a four-year degree at a state university debt free.

"This time in our history does not call for following the old familiar path," said Easley in the address to a joint session of the General Assembly. "Now is the time to blaze a new trail so that all people of goodwill and ambition can travel that path to prosperity.

"The true fight for the American way of life is not only in Iraq and Afghanistan. We have enemies to conquer here, as well. In this new world economy, we must fight the enemy of ignorance and illiteracy, the enemy of apathy and complacency, and the enemy of anguish and poverty."

The Governor announced the expansion of Learn and Earn high schools statewide so that the program can reach every student in every corner of the state. Learn and Earn allows high school students to take college courses at high school and earn two years of college credit or an associate's degree with just one extra year of study.

The Learn and Earn program has been featured in Newsweek magazine as well as CBS News, and recently won the Southern Growth Policies Board Innovator Award for its innovative approach for combating high school dropout and enhancing the high school graduation rate.

Along with the Learn and Earn expansion, Easley announced a new initiative that will send to and graduate more students from college. For low- and moderate-income students, he proposed a major new financial aid program that combines a two-year state grant with current federal assistance that will replace the need for loans if students work 10 hours a week to help pay for their education.

Therefore, students who complete the Learn and Earn program with two years of college credit will be able to finish their four-year degree at a state university debt free.

"Today, it is the duty of every citizen to learn as much as they can, and to compete in the world economy," he said. "And it is our duty to offer that opportunity."

The Governor also called for 10,000 more four year-olds to be added to the More at Four pre-K program which serves nearly 20,000 at-risk children. He also stressed the importance of continuing to raise teacher pay, which will be up 18 percent since 2005, on the way to reaching the national average by 2008.

Easley declared that the state has an obligation to continue to help its most vulnerable citizens. "Even during the worst of times, we refused to follow the poor example of others. We did not follow Washington's example of cutting the safety net for our most needy."

To help families who are struggling to make ends meet, the Governor proposed eliminating the state income tax for nearly 600,000 low-income taxpayers and cutting in half the tax for another 600,000. "This will send a message in a loud and mighty voice that we place a premium on work and we mean for it to pay off for hard-working people," he said.

Furthermore, to help middle-class families who are feeling the financial squeeze from the rising cost of health care, Easley announced a new N.C. Kids Care package to help more than 12,000 children in families who earn $40,000 to $60,000 a year, or 300 percent of the poverty level for a family of four.

The Governor further proposed extending Medicaid health coverage to foster-care children from age 18 to 21. In addition, Easley emphasized the need for an adoption tax credit. "We can provide the opportunity not only for a family to have a child but for every child to have a family," he said.

To help the state's seniors, Easley announced the North Carolina Rx prescription drug program will make room for 45,000 more seniors this year. The program provides financial assistance and personal guidance so low-income North Carolina seniors can get the medicines they need. North Carolina Rx helps pay monthly premiums so many of the federal plans are free or very low cost for qualifying low-income seniors.

To keep communities secure, Easley called for more prosecutors, judges, clerks, victims' assistance, prison expansion and the funding of more technology and communication for local law enforcement. "If you commit a violent crime in this state, we are going to take you to court faster and keep you in jail longer," he said.

Easley also urged the legislature to make further advances in campaign and lobbying reform. "This year and every year to come, there will always be more work to be done and more improvements to be made," said Easley. "We must be mindful that democracy only works when people participate and people only participate when they have confidence in the integrity of the political process."

Easley further added that the state's disciplined nature must extend to energy use as well. "We want this country to be energy independent and the small steps we take can make a big difference. We have saved millions in state government buildings by making them more energy efficient. All of us must conserve more. We cannot just keep building more and more power plants." The Governor said "We have two choices: start working toward energy independence or put our country at risk. We must choose independence."

The Governor cautioned that North Carolina can never forget the fiscal crisis the state confronted in 2001. "Now is not the time to abandon fiscal discipline," said Easley. "We cannot over-spend, over-tax, or over-borrow. Real progress must be sustainable and it must be paid for. Otherwise, the promises made today will be broken tomorrow."