NASHVILLE, Tenn. - The Governor just delivered his State of the State Address, and high on the list of priorities are improving education and lowering taxes. Governor Haslam's theme tonight is that Tennessee is different - different in the way it handles money, deals with problems, and plans for what's ahead. Gov. Bill Haslam says Tennessee is in a strong position, and has potential to be even stronger.

"Unlike the news coming out of our nation's capitol and so many other states around the country, good things are happening in Tennessee," says Gov. Haslam.

During his 3rd State of the State Address, Haslam makes education reform a key topic, including raising the number of college graduates, and starting a voucher program to give low income students in low performing schools the option of attending private schools.

"Dollars alone don't lead to improvement. There has to be a plan," says Governor Haslam. "Along with strategic investments, we are pursuing real reform in education that is producing results."

Highlights of the Governor's budget proposal include a quarter percent reduction in the sales tax on food, a 1.5% pay raise for state employees, and adding $100 million to the state's rainy day fund, bringing the balance to $456 million.

"That leadership is what we need to make and empower our citizens to be more successful," says Rep. Glen Casada (R-Williamson County).

Republicans were quick to praise Gov. Haslam's speech and the direction he's proposing.

"With our low tax burden, our low regulatory environment, our low debt per capita, our state is in a good place, but there is more to do," says Sen. Jack Johnson (R-Williamson County).

Democrats are more measured in their praise and some ideas like the school voucher plan are already drawing criticism.

"I don't think anybody thinks vouchers are good policy," says Rep. Mike Stewart (D-Nashville). "They are certainly good as a political statement to certain far right elements of the Republican Party."

The Governor knows it is now up to the 132 lawmakers to ultimately approve or reject his agenda.

"People want good quality jobs," says Governor Haslam. "People want their children to have the best education possible, and as a state we should want the same for those kids."

The Governor's $32.7 billion budget proposal is bigger than last year's plan. However, almost half of the new money will go toward higher expenses in TennCare. COMING UP TONIGHT on FOX17 NEWS: more on the Governor's plan to have more college graduates in Tennessee.Gov. Haslam Lays Out a Plan for the Future of Tenn.