In a folksy speech that evoked Stetson hats, Gov. John Hickenlooper today simultaneously cheered on Tim Tebow and civil unions while calling for a mass conversation with Coloradans about the state’s future.

In Hickenlooper’s second State of the State address, delivered before a joint session of the state House and Senate, the Democratic governor called for initiatives ranging from a ballot measure to reform the state’s constitutionally imposed personnel system to a bicycle race on the Eastern Plains.

“The story of the Stetson is about one of Colorado’s earliest entrepreneurs,” Hickenlooper said. “That same spirit is with us today. Indeed, in some way everyone in this room is an entrepreneur.”

Still, the governor said, despite improvements in recent tax revenues, the severe challenges facing Colorado’s budget remain.

“We face the current budget challenge in a stronger position today than a year ago. We are moving in the right direction, but we are still in rough water,” Hickenlooper said.

“If you account for inflation, the state’s general fund revenue is $1 billion less than it was five years ago when the state had fewer people and was economically stronger — $1 billion — and demand for government services has surged.

“The number of children enrolled in public schools has increased significantly and more people are enrolled in Medicaid.”

That’s why, the governor said, he wants to focus state aid on the poorest seniors, giving assistance to rent and heating bills, rather than allowing a senior property tax break that costs the state nearly $100 million a year to take effect.

The governor has repeatedly said the state must show Coloradans it is operating as leanly as possible before they are asked for higher taxes. He touted his administration’s efforts to reduce “red tape.”

“We are scrubbing every state agency to eliminate red tape,” Hickenlooper said to bipartisan applause. “Our plan is outlined in the report we issued this week called ‘Pits and Peeves.’

“The Colorado Department of Transportation, for example, found rules that were out of date decades ago. The Department of Human Services recommended the repeal of 850 unnecessary rules.”

But he said the state has to go further, calling for reform of the many constitutionally embedded personnel rules in the constitution that managers say prevent smart hiring and occasionally protect inept workers.

“The state constitution is riddled with personnel rules and administrative procedures that are obsolete and should be reformed,” he said. “We are working with state employees on a package of reforms, but we need your help to go to the ballot this year with a proposal that will improve the way we manage state personnel.”

But beyond these efficiency efforts, Hickenlooper said, he wants Coloradans at-large to weigh in on the state’s future. The governor outlined a large-scale, statewide civic engagement effort that he’s calling “TBD” or “To Be Determined.”

“Really, we tried to come up with a catchy name but TBD truly captures the intended outcome — it’s to be determined,” the governor said to polite laughter.

“In the sense that entrepreneurs try to find solutions to the needs and challenges of society, TBD Colorado will seek to tap that same spirit that exists, in part, in all of us in Colorado.”

Hickenlooper got two of his biggest applause lines when he saluted Denver Broncos Quarterback Tim Tebow, calling on him to “beat those New England Patriots on Saturday night,” and when he later urged lawmakers to approve same-sex unions.

“We don’t believe we should legislate what happens inside a church or place of worship, but government should treat all people equally,” Hickenlooper said. “It’s time to pass civil unions.”

Though supporters of civil unions gave Hickenlooper a standing ovation as almost as loud as the cheering for the Broncos, Republican opponents sat quietly, though a few stood with Democrats in support.

And Hickenlooper renewed his call for privatizing Pinnacol Assurance, the state-chartered worker’s compensation insurance fund. The proposal would turn the quasi-governmental agency private and give the state a 40 percent ownership stake and a yearly dividend of $13.6 million to help education and economic development efforts.

Hickenlooper noted the success of the USA Pro Cycling Challenge last year, but said there needed to be a race “for the rest of us.” He called for a “Pedal the Plains” race in the eastern swath of Colorado.

“We think a bike tour across the Eastern Plains will not only be great for the sport of cycling, it will also give folks an opportunity to see where our food comes from,” the governor said.

“I think Hickenlooper hit all the buttons, all of them,” said Sen. Nancy Spence, R-Centennial. “He talked about ag, he talked about the Broncos, he talked about all the issues facing the state. I thought it was a very good speech.”

Others agreed.

“Overall it was pretty good. He did a better job than last year,” said Senate Minority Leader Bill Cadman, R-Colorado Springs. “It was more complete.”

And: “God, I love that man,” said Sen. Cheri Jahn, D-Wheat Ridge.

Tim Hoover: 303-954-1626 or thoover@denverpost.com