>> the u.s. chamber of commerce told a governor summit on the u.s. economy and job creation on monday. the chamber also released a study for the creation of 20 million jobs through the next ten years through entrepreneur said in the state. this is two and half hours. [inaudible conversations] ..

to get that to his state on account of the flooding issues. and a warm welcome obviously to other governors here, governor mansion, governor markel, governor richardson, governor perjury will be joined by governor. later on this morning. in addition to the governors, many of whom spent much of their career in the private sector as well, which i think it's useful information for a topic today, we're also joined by chamber and

business leaders from each of the state. welcome to all of you. these leaders represent a broad range of sectors including manufacturing, information technology, health care and oil refinery and on and on. and why don't we take a moment and let each of our chamber of business leaders tell us their names, what their business is our and what state they're from, so that the governors cannot some feel for who were visiting with them will start at the end with you, bill from delaware. [inaudible] >> thank you. [inaudible] [inaudible] >> thank you.

[inaudible] >> leann kravitz, albuquerque new mexico. >> good morning. kerry called the greater albuquerque chamber of commerce worked on for 30 some ideas. it's great to see what wonderful c. everyone here and to be with her governor. >> president and ceo of the new mexico-based company called amcor, where the manufacture solar cells for space power education. >> i'm chilcott ichat university. i work with texas and i come from los angeles. >> we worked on report. [inaudible] the >> david travers, chief operating officer of the u.s. chamber. it makes dan anderson, chamber campaign for free enterprise. >> a little with the farm

companies in chicago. >> gymboree does mexican food restaurant a small chinon west texas, companywide started when i was 22 when she was 20. but to be here. >> russell kitchener, american in charlestown west virginia appeared we serve approximately 63,000 students on the road. the vast majority of who are at a duty military. thank you. >> steve roberts, the west virginia chamber of commerce. >> harry siegel, president and ceo of hms technologies. we service disabled small business and information technology provider. in west virginia. >> while were going to hear from all the governors today, obviously as well for me well as we react to some of our topics. we are also going to hear from delora zimmerman about a study that we have commissioned that they worked on for a solid

enterprising date, that you should have before you, which provides an analysis of state job creation strategy and identify cyberfarmers in a number of areas. the goal of this study is to provide a snapshot of effective policy programs from around the country and to highlight the good work, the great work that states are doing now to grow jobs. this study really demonstrates what laboratories of reform our states are and it shows how much human capital and economic potential are states have here to provide practical examples of creative policymaking all over the country and makes clear the spirit of entrepreneurship and innovation that is weathering the economic storm. while my recent policy experience has been at the federal level, i have had a beautifully in my career the opportunity to work or to governors and i know that governors are the leading policy innovators when it comes to reform and particularly with

respect to job growth, especially in times of economic difficulty like we have today. it's vitally important that we know what's happening out in the states, the kinds of challenges that are being faced and not by our governors in the air and we hope that today's discussion will better inform all of us. those appear at the u.s. chamber, governors, business readers about the good work that is going on. so before you turn the program over to our leader, tom donohue, i'd like for you all to look at a very brief video about our campaign for free enterprise, the dream big campaign. so it's about a two-minute video. >> it's in the air we breathe, the dirt under our fingers, we hear a pounding in the night, feel it in our bones. americans have always dreamed to big dreamers, dream so big we needed skyscrapers to reach them and families to pass them on. stone and steel to build them

and generations to keep them safe. american dream so old they become an economy and build the greatest nation on earth. american free enterprise, it sets our nation apart, it makes america exceptional. it's the unstoppable power of 300 million americans dreaming big and rolling up our sleeves. our challenge, create 20 million new jobs over the next decade. washington can help in times of trouble, but fre enterpris is what america is counting on to create jobs and growth for the long haul and that's what free enterprise does best. your dreams make the difference. it's the idea that the team like this miss that created the paycheck, that said the family, who supports the community, that becomes the american economy.

free enterprise is the unlimited potential of the american people. it's been a grader who likes questions better than answer. it's working late into the night, so hard, sweat piece suite. free enterprise is beyond familial spirit that keeps the striving for sss ican free enterprise, it's all about, inc. to you. so let's get america ready. learn more about the 20 million job challenge. stand up and speak out for free enterprise. your dreams provide the energy, imagination and opportunities to build a better future for ourselves and our children. join the campaign for free enterprise. sign the pledge and always dream big.

[inaudible] [inaudible conversations] [inaudible conversations] >> do now, while we're waiting for this thing teach you up, some of the people standing there seats over there in the over here and were given in a lot of arguments right here, that were very hospitable people. so try and find a fee. andrea country in seat. >> what we found a way to grow our country naturally, from brought him up and create the jobs of tomorrow.

what if we found a way to reward the dreamers, the innovators, the workers, putting the hours hours to roll up their sleeves. we have a strategy for new american job. it's how american free enterprise and create the 20 million new jobs we need in the next 10 years. we can put americans to work, doubling u.s. exports, rebuilding our infrastructure, expanding credit and investment are transforming education and leading the world in clean energy technology with petition on renewable resources and reducing economic uncertainty for responsible economic policies. join the discussion at re-enterprise.com, connect on facebook, support the u.s. chamber strategy for new american jobs. american free enterprise, it's dream big. >> thank you. inspiring start. now, it's my pleasure to introduce the president and ceo

of the united states chamber of commerce, tom donahue. thank you, tom. >> thank you, margaret. good morning ladies and gentlemen. governors, welcome. we're honored to have your today. i think i like to start my comments by expressing my appreciation to our cochairman and governor britta said and governor plenty. now unfortunately, due to the flood and severe storms in tennessee over the weekend, governor prentice and had to go home and governor haley, haley barbour is stuck with his problems down in mississippi. and as we were having some conversations appear, there are challenges in our country today. and those challenges are most effectively going to be met by the governors and we are therefore particularly pleased that show be here and governor plenty, thank you to you for

carrying both sides of this issue is today. as you know the governor is one of the most innovative governors in our country. and to our country. we appreciate the leadership and the participation. i'd also like to join margaret in thanking all of the governors, the state chambers and the business leaders for attending this event. together they represent the three most important groups to our economic recovery and long-term growth. why? because only the dirt can create the 20 million jobs will need in the next decade. the federal government can help. they can help utilize a

faltering economy in some ways, but it is no substitute for businesses large and small that create almost all of the new jobs. we have many representatives of these innovative in job creating businesses here today and you'll hear some of their stories. and where are these jobs being created? at the state and local level, of course. that's why we're so pleased to be hosting this bipartisan group of leaders. they play an essential role in creating the right conditions in which businesses can form, grow and prosper. those of us inside the beltway tend to think from time to time of washington as the senator -- the center of the universe. and the chairman of our universe, bill little, remains the everyday there were a different part of the universe, but clearly not the center. as justice brandeis had a very thoughtful comments.

he said the states are the laboratories of democracy, where a commonsense solution, as we would say, innovation and experimentation and bipartisanship occur far more frequently at the state and local level in the two here in washington. we invite state chambers here because governors and businesses have no greater ally in economic development. they do a good job. by the way, they also caught and tried to get businesses to come from other countries and sometimes they come from other states, to their state because they have a better upper to you before then. i was upstairs had a breakfast this morning with some leaders from indonesia and they had a fascinating question. why are american companies going so many other places around the world are not coming here? and i said why are foreign countries investing in so many places around the united date and you're not? and what can you do to help your

cells attract business? and i thought about the governors and what they do everyday to encourage people, encourage companies, not only to come to their state and stay in their state, but to succeed in their state. they help businesses get started. they promote their growth and advocate for good public policies. and they can bring the private and public tears together differently shared goals, coordinate actions and to solve the challenges that american business space. the chambers represented here today to all those things, exceptionally well on our behalf. what unites all of us is a shared belief in the power and principles of free enterprise. together were pursuing an urgent goal, getting our economy back on its feet and on a path that sustain growth. jobs are priority one, but when it comes to job creation, the

question is what works and what doesn't? what can states learn from one another? what are economically successful state doing that others should consider? and not what we're here to talk about today. to find solutions, we must first understand the scope of the challenge before us. were all very familiar with what's happening at the federal level. some good comment some not so good. spending and deficits are going through the roof. we don't have to have a balanced budget as many of you do. we just passed a huge expensive health care bill that no one read the four they voted on it and very few people seem to understand. what will be the consequences, good and bad, for the state and for our businesses. congress is on the verge of passing a sweeping financial reform bill. reform is desperately needed and

we have called for it for more than four years. but it must be the right reform. healthy capital markets power our economy. we need stronger consumer protections. the elimination of regulatory dead zones and the streamlining of duplicates is an overlapping regulating agencies. if we got this reform right, we can better protect consumers, spur glenn dean and create jobs. if we get it wrong, we can check off credit to small and large businesses across the country and stay fuller recovery. in addition, we're not doing enough to reduce our dangerous over dependence on foreign energy. and our infrastructure in many ways is crumbling around us. every governor here understands the frustration of not getting a highway bill, which is the easiest of our things to take

care of. what's not as welders are the dire circumstances and some of these areas facing our state. the recession asset in the states very hard. revenues already pre-2006 level. pension obligations are rising astronomically in mayfair. state governments face a trillion dollar shortfall in promised pension, health care and other retirement than if it and that's a conservative estimate. budget outlooks are grim. thirty-five states are project teams a combined budget gap of $56 billion for fiscal year 2011. and the worst may yet be to come. if history is a guide, the most difficult budget year is for a state are the two years immediately after a national

recession is declared over. it's a great time to be governor, isn't it? when washington is confronted with a lack of financial resource, it has an easy solution. print more money, run a deficit, borrow and spend. the problem is, we are getting too close to the red light and this is a theory of time. states can't do that. they must balance their budgets every year, year after year. that means cutting spending or raising taxes or both. and states must balance these decisions against the need to retain and attract private enterprise. no private enterprise? no jobs. so let's look at a number of free enterprise solutions and none will get on with our discussion. states have a choice in how to do with these challenging times. they can tax-and-spend regulate or they can treat business as nothing more than cash cows. very few states are not as good

they can turn to an all-powerful federal government that will effectively make decisions for them. they know that won't work or they can innovate, invest, inspire, nurture businesses, force the job creation by empowering people to make their own decisions. one approach is based on the belief in a bonobo land federal government that knows what's best for all of us. the other is based on free enterprise. individual initiative and personal responsibility. today we're releasing a new study that states that pursue a cost based on free enterprise principles have been to fare better than those that don't. the study called enterprising states highlight successful state strategies for job creation and economic growth. it cites specific examples of innovative state policies based

on free enterprise that have attracted more businesses, more economic and dvd and many more jobs. by sharing the success stories and lessons learned, we hope to create a roadmap to economic revitalization and an ongoing dialogue that makes every state stronger. what to economically vibrant states do according to the study? they keep taxes low. the study found that high tax rates do not lead to either help the economies or budgets. on the contrary, many states with the highest tax rate and the most onerous regulatory regimes have experienced the worst budget crisis taxpayers and businesses are leaving their estates while they extraordinary state expenditures on these issues are staying. they target investments in infrastructure projects and create growth friendly

environments and communities to the successful states. they work hard to attract science and technology-based companies that will generate the jobs of tomorrow. they help companies large and small to export. they will come foreign direct investments. they don't shun it. they cultivate people through work force development and strong schools. and those are just a few of the highlights from the study. the folks who did the study will be here today to go through all the details. we appreciate your participation. let me add a personal note before i conclude. there are two points that i just made in the last couple of comments. one is about trade. the more we export and the president even took it from our report last year if we would double down on exports in this country and with the largest exporters in the world, will create a lot of jobs. but the unions have put

tremendous pressure on this white house and on this congress and were not moving on our free trade agreement and were not moving to double our exports. the second thing, which i take my hat off to the men and women of the states that are here on what they've done on k-12 education, a program with all been working on because while were going to provide 20 million jobs from the private sector in 10 years and we have 20 million people to hire, that's the million unemployed in the people coming into the workforce. were not going to have 20 million skilled educated people to do this work and we must do this business. the point is we need smart policies of the state level to lift us out of this recession. we need state leaders of what those of you gathered here to foster the free enterprise system. we need federal leaders to remember the 10 commandments to the constitution. the powers not delegated to the

united states by the constitution or reserved to the states respectively or to the people. states and the freedom to innovate and experiment and they must not be unduly constrained by the unintended consequences of massive federal legislation. we must remind all americans that free enterprise is the only system that can create the 20 million jobs america will need over the next 10 years. that's why in october the chamber launched a positive forward-looking campaign to defend, protect and advance the free enterprise system. as you just saw, it's called american free enterprise, dream big. the initiative may be the most important in the most historical one of our nearly 100 year history. we are doing a fence across the

country in your state highlighting the benefits of free enterprise and we've run a major national at camp david, more to come. we're partnering with like-minded organizations to broaden the reach of our messages. were holding a lack of officials accountable for opposed to rewarding those that were free enterprise and were reaching out to young people who are no longer being taught about free enterprise in our school systems and were holding events like this one where we discuss how cities and states can become more free enterprise friendly. in fact, i was in colorado last week with a whole group of mayors who think they're really on the firing line and it is true. and so the further you get away from mayors and governors and the closer you get here to the federal triangle, the more you are losing track of what really needs to be done. as the facilitators of partnerships between the public and dirt, state and local

chambers have got to be leaders in the sufferer. and as the world's largest business federation, the u.s. chamber has got to stand up and take some of the leads here. the message we must carry is that free enterprise is the solution i'm about to problem, that given the freedom and the incentive to do so, state and local businesses can jumpstart our economy, create millions of new jobs and put us on the path to long-term prosperity. and most of all that our recovery will come from the bottom up, not from the top down. again, i went to thank you for being here, for participating in this discussion and sending a fundamental message that we have got to do this from the bottom up, with the people that every day are leading our country and our state. and i thank you all for being here and governor, he think we're going to hear from you first heard we appreciate the

extraordinary amount of time you told us in putting this event together and we look forward to your comments. >> good morning everybody, thank you for being here. thank you to dom tony hill community chamber of commerce. thank you for your continued leadership and advocacy in one of the most strategically important questions and issues facing our country. and that's making sure that free enterprise sunscreen that the engine of job growth in investment and economic opportunity for citizens and poorer country. on behalf of governor prentice and who couldn't be here this morning because of a natural disaster in his day, i want to thank all of the attendees were taken the time to be your and participating in its discussion and in particular want to thank my colleagues in federal governors were taken the time to be here in each case joe mentioned in west virginia and governor mark l. in delaware, governor richardson new mexico,

governor should carry rhode island. we may come from different states, we may have different views on policy priorities, but these are pro-business, pro-job governors who got a demonstrated record of understanding the importance of the role of free enterprise and the economy and enjoy and look forward to the discussion this morning. i want to thank margaret spellings for her leadership and vision in putting this event together. as i mentioned to some before we started it's very difficult to say no to margaret on anything. so when the phone rings, we say yes and what to rally to the cause. but let me just share a few reflections from my standpoint and first of all i appreciate the theme of this gathering, which is free enterprise. it may seem quaint, but emphasizing the word free matters because we understand what enterprise means, but free is the opposite of burdened or suffocated or over regulated or overtaxed and the like through public policy you can either

dramatically or in increments began to stifle the notion of free. and one of the great i think strengths and genius of this country and are commonly is the notion that we have dreamers and designers and innovators and risktakers and inventors and others who come forward and say, one of our great advantages is our ingenuity, our sense of dynamic quality, our sense of the ability to create, the sense to take risk, that is at least qualitatively different and much of the rest of the world. and that remains one of our graded images, so we want to celebrate the word free and enterprise in this gathering this morning. i was at the milken global conference in los angeles about a week ago and had a chance to visit with an individual who provides about 50,000 jobs in the united states of america. ..

lynnville buildings, conduct research and commercialize it locally but in each state there are some different measurements of challenge and opportunity. i will share just a few reflections briefly from the minnesota perspectives and look forward to the discussion more broadly from the job providers and leaders in the room and the governors from the public policy perspective in their state. first of all, minnesota is a state that prides itself on its quality-of-life if you go around my state and ask people what do you like about minnesotans you will hear various things. some people might say i love to haunt and fish and other people might say i like to watch brett farr and if the vikings win the super bowl or hopefully next year. other people might say we love the arts or cultural amenities. other people might talk about

why they bike around leaks and other people might say the likes of one bodman or getting involved in charities and down the list but each of those things depends on one threshold opportunity and that is people can't have a good quality-of-life unless they have a job or an economic opportunity. it's great to go hunting and by a shotgun unless you have a job. it's pretty tough to by the vikings tickets to watch brett favr lummis you have a job so all these other issues are important but they are somewhat secondary to the threshold are we providing enough jobs to provide our citizens economic opportunities of the begin of the quality-of-life. so the answer to these questions what are those things we can do to make it more likely, not less likely, people will start businesses, and employees, build buildings, built capital, commercialize it, usually does not reside with the politicians. many of whom have not been in

the private sector. i think a good way to ask and answer the question is asked the people who actually do it. go to the individuals who have been the dreamers, designers, risktaker scott entrepreneur is and say what are the things that will make it more likely, not less likely that will start a business, and jobs and on the list. so from the minnesota perspective there are a couple of things that are but a challenge and an opportunity to read the first is cost. it matters in your city and county and region and your state in your country how your costs compare to your competitors even nationally or globally. now, we immediately jump to the tax issue and that's very important but costs are more broadly defined than traditional taxes so we have the tax issue but we also have energy cost and workers' compensation costs and unemployment insurance cost and a basket of costs related to regulation and permitting not just in terms of the financial cost but the time delays associated with that.

there are a bundle basket of things that represent the cost of doing business in a particular city, state, region or country, and if those are not competitive compared to the rest of the country or the rest of the world the flow of capital will begin to vibrate away from it. so in minnesota's case our costs are too high in that regard. one of the things we've done as governors to say we are not going to make them worse and over time we are going to make sense strategically better and i will say the long version but the short version is you can put a competitiveness negative born on the wall, set aside the political rhetoric and put some data are around with the cost burden for measurements are for your state or city or county and see how it compares to the rest of the country and the rest of the world. in the case of my state the cost me to come down. our value added proposition in the marketplace probably minnesota won't be the cheapest place because we have other advantages but we also can't be so smug about how special we

think we are in terms of the quality of or lives and the other amenities we have to offer that we can price ourselves on the market and expect that not to affect the deployment of capital. one of the strategic objectives from my state is to lower costs and bring them in the line so that we can be more competitive with the rest of the nation and the rest of the world. on the opportunities site minnesota has this advantage. we have work force readiness and preparedness and work force success that is significantly above average or that we are all above average but we have a and a situation in my state where the scores are the highest in the nation. our naep scores are the highest. we did the math and science test as if we were a country by ourselves we placed 15th or 16th in the world and we took them recently and cannot fifth or sixth in the world some of our value added propositions in the marketplace is that we have current and future workers who are educated, skilled, datacom

innovative and the like so that leads to some other advantages we want to preserve that. as a stick and a nation we have to squarely address the educational work force and prepare this issue much more aggressively than we have recently. we cannot be a successful country just 300 million people leading a third of the team on the venture. that is what we are doing for the country. we've one-third of students nationwide dropping out of high school. it used to be to drop out of high school in the old days you could get what my dad called the strong back job. the jobs are mostly gone so now to either have an education or a skilled or are marginalized and unable to access the economy of today and tomorrow and as importantly the marginalized individuals then become off to the side of the economy in a way that then puts more demand and pressure on the government to serve their needs. as opposed to meaningful access in the private economy themselves and it becomes a vicious cycle. as important as the cost issue

is the issue of whether our children and future citizens and workers of this country are going to be properly educated and have a skill that is relevant to the economy of today and tomorrow and pretty clearly that is not happening to the degree that it needs to in many parts of our country. that is why i applaud. i don't always agree with everything that goes on in washington, d.c. but i do applaud the recent emphasis on many of the education reforms initiatives that have been put forward to try to overhaul the education system and that needs to be part of the system as well i look forward to the rest of the discussion but i also want to thank robert spellings and the chamber for convening of this and my fellow governors for taking the time to be here and we look forward to the discussion unfolding here. thanks a lot. [applause] >> thanks, governor, for your leadership and participation for the great comments. we are next week to hear from the researcher who has prepared

the study at the states to have before you. julca often is the distinguished presidential fellow in the urban future at chapman university in orange california and adjunct fellow with the institute's london, senior fellow for urban future in new york city and a senior consultant with the strategy group in fargo north dakota. so your own self have a little bird's eye view on lots of localities it sounds like some you are from your biography who was an author khalilzad columnist, internationally recognized authority on global economic political and social trends. his most recent book is titled the next hundred milliken america and 2050 which explores how the nation will evolve over the next four decades a fascinating book. the government is cofounder president and chief excited officer of practiced study group. a strategy consultant with 25 years of domestic and international experience working with regional economic

development groups companies and universities. she's been awarded seven small business innovation research awards from the usda and author and kuhl author of numerous books. gentlemen? >> -- before. we're going to divide this a little bit between [inaudible] when you're from california you are careful about your water. what i would like to do -- thank you -- is go over the statistics. i think this is a really important discussion to be having from the beginning of this whole last two or three years it was clear and i think to my colleagues that the big issue was critical jobs some to while for washington to sort of forgot to that and may have people's attention. as you can see we have had

severe job losses over the last few years and as you look at it too has really been hit the hardest and really has been the minority population, the unemployed are obviously more heavily in african-american and latino populations over the plan has been somewhat widely distributed. i want to point to the numbers 16 through 19, 2324. that is probably the scariest number of all. i have some very wonderful students at chapman and i asked one of my best students last year what are you going to do when you graduate and he said park cars and that is something you hear more and more. more and more kids say i'm going to live with my parents, i'm going to do whatever i can to sort of stay in a worst case they go to law school. [laughter] basically we have an enormous

amount of energy coming out of this generation and right now that's been very much stunted and i think we have to be considering the idea that if these young people go through another two, three, four years where their best hope is to be a dirty stuff at starbucks we have some serious problems. you see this as particularly of the blue-collar population construction manufacturing but again it's been in the information sector and other sectors. problems with construction are particularly severe. this was a movement towards upward mobility. it was one of those strong back kind of jobs that people could get. it was very important those of us who live in the southwestern united states know that there was enormous percentage of the latino population that was involved in the construction business and the depth of the business or the extreme contraction in that business has been very diverse and i can see that my own neighborhood in los angeles and this is something we have to work out and then as the

whole manufacturing part of the economy particularly in the state of california where i live has been pretty hard hit. and even though you think that we are doing really well we will read the newspapers in silicon valley has fewer jobs than in 2000 and has very severe levels of unemployment and underemployment. again, this is particularly true that in these fields as you can see and the hardest hit in many ways big manufacturing. the question whether the jobs will come back at all. the thing about manufacturing is we think of it as a sort of low-skilled but increasingly manufacturing is the high skilled profession and its wages are reasonably high. there is a great need for skills training. i think one of the problems that we have in this country is delore and i work in rough

neighborhoods. you can either go to college and become a brain surgeon or you can ever get target or deal drugs. that is kind of for your choices are and kids don't understand that we are going to have a severe shortage of skilled labor. i've even been in situations in los angeles there's been companies in molding that can't get it for me to bring them from argentina because they can't find that person in the united states yet these people would be capable, these kids who are either not making it through high school or are barely making it through high school and instead they are being shoved into a system that doesn't push them to words skills that would look to be useful and would provide a decent life. so, what is our biggest problem? the biggest problem is going to be creating about 13 million new jobs for the growing population and restoring the 7 million. we have to think about job loss not as a statistic but something as a deadbeat to academic economists and how it affects

lives and i have to say every day i almost every day i hear a story of the dry cleaner, the guy who shut down his factory or somebody who had to take their kid out of the school because they can't afford the tuition anymore so these are very personal things and they have ramifications over time. so okay now will give you some good news since it has been not so good so far. are we of necessity in decline? darbee and necessity recession as part of a decline in the united states? one of the things is when the financial crisis happened, many people here and elsewhere said you see the american model was all broken. free enterprise model is broken. we have to be more like your up. i'm sure the greeks would agree. the united states despite all the things we mess up is doing better than most of the offense industrial countries right now and the question is what we go longer term and this is what i

wrote about in the new book and basically we of really good demographics and better than all of our competitors including interestingly enough east asia which i will talk about. the u.s. is the only advanced country with a large and growing population. it has a very resilient system even though no matter how much washington tries to score with other americans manage somehow to keep going. and that we have a very strong basic value system, and i think a whole idea is a little republic thomas jefferson talked but is going to be the core, and i think that mr. donohue was on the right track its win to come from the bottom-up and from the communities and states and come from the neighborhoods, not just from the top. now here is some just basic numbers that might be of some interest. when president kennedy was elected we had less than 200 million people. we have slightly over 300 million. and most projections are about 400 million by 2015. and i think it is very important to understand that this is a not

necessarily the most rapid rate of growth that we have had its exceptional when you compare it to our competitors. if you look at age 65 by 2050, japan and germany you are going up around 30, 35, 40% of the population over 65 we've really have no historical parallel to this. they've never had so many older people with relatively so few young people and my good friend bill frye at brookings told me one time he went to japan how or americans having all these kids and i said if we have to ask that question we are in more trouble than we thought. but fundamentally we have a younger population that is at great advantage over time and by the way it should be pointed out that not only japan but correa and eventually china will all run into the same thing. the one child family will have

ramifications and labor force overtime and the fact there is not so many more boys than girls in china you can imagine what that is going to lead to. now the america we are going to see is going to be very different. my mother who is 86 kuran on 87, when she got her cohort was about 15% of the population was non-white. my 5-year-old daughter, the world she's growing up in is going to be at least 40% non-white so we will be looking at a different amount. when we think about 20 million jobs many of the 20 million or going to minority groups and are going to be very much targeted to that group because that's where the work force is and growth is so fundamentally ignored the issue of jobs or not prioritizing screen of a disproportionate effect on a generation that is coming into the work force that is very

diverse. now this is probably the most interesting of all of the statistics that we've developed and this is the growth of the population 15 to 64. that is the group of people going into the latter years of high school into college and still in the workforce. between 2000 to 2015 the u.s. will grow 42%. that is a lot of jobs. whenever the 20 million number that mr. donohue is talking about is going to be going on for 20, 30, 40 years suite got to be thinking long-term. in comparison china's work force will decline by 10%, europe by 25%, korea by 50% and japan by 44%. so, we have and advantage, and it's not just the at and of having more people, but young people who come up with great ideas. i'm always amazed both by my students and my daughters about things that they come up with, things they think about, and i

think that this is really going to be a great thing for us relative to countries where the population gets very much older. and generally speaking, if you have a more age oriented population, population of the people, 65 don't tend to get the innovation and to have a kind of conservatism which is really everything is designed to save the retirement and the attention of the retired and not really so much focus on job growth. now we also want to talk about what is the role of states because this is cui to be critical and i can tell you i truly great deal in this country and parts of the country that are still very vital and people are thinking forward and there are people trying different things and the whole question of how do we divide power in this country and i think one of the things that judge brandeis talked about is it is a good thing in the federal system the founding fathers were pretty smart and i think that there is this notion states are places that can experiment so if

something starts in minnesota and works of your states will do it. if something starts in california and occasionally things in california started don't work people start saying we don't want to go down that path, but it's very important to have the demonstration in terms of getting to good policy. you can't do that if everything is done at the federal level and of course the history, which is a whole story of itself is the states have been innovators all along. the erie canal, road building, the grant colleges from our great governor pat brown was for education. we are still living on the great things he did and the governors before him and maybe the governors after did so california, north carolina did with the research triangle and tremendous investments. texas sneaking its infrastructure both human and physical. these are examples of states and localities leading the way.

and this is something we've seen before and i was glad to see from here because i've worked for al at the democratic leadership council and in those days there were many governors who were doing great things including bill clinton in what he was trying to do battle for the country, mayors and governors, they were the policy innovators and we sort of lost that in the current atmosphere where everything is focused on what is happening in washington, so what we would like to do now is focus the discussion what states are doing and see what they've been doing the same job and what things we can learn from their research to review delore? >> good morning, everybody. what we had the 50 states and five territories there are two central questions we had. one, which did policies of the greatest impact on creating jobs and number two, are their best practices in the demonstration

that jolt talked about that we can look at for each of the state's. so we reach out to the 50 states, the five territories talked to people at the economic to commit agencies, went to the web sites of their agencies and the governors websites and read reports from each of the states and did a thorough analysis of what is going on and just to find out what is working. there were five areas we focused on, entrepreneur chabad innovation come exports and international trade, work force to the limit and training, infrastructure and in taxes and regulation. so for each state we did a case study and as you can imagine when you have one page for each state you are kind of limited but we tried to find the things people told us were making a difference, things they really thought were going to help create jobs and economic development. now, the findings we've done in the map of the 50 states we were unable to get this information from the territories but that

shows the top ten in each of those measures we used and in the top 15 this is on page 27 if you've got your report to get a picture which states are performing in the top tier along each of those measures this mabus also arranged so shows regional variations and you can see how that plays out in the map. for each of the policy areas we identified high performing states and then talked a little bit about some of the things they are doing and then of course the case studies. now in terms of the measures that we used for high performance we looked at job creation, state product changes and then changes in the median family income and per capita income and the job creatio that we looked at was from 2000 to 2009 and then also from 2007 to 2009 to kind of look at the effect of the recession.

now if you look of these states, you will find that there are some things here worth noting. first of all of those states, the metal top half of the country there, very strong in the commodity sector so that is part of the reason they, are there. texas, the energy side, the states in the middle also did fairly well because they learned from other states ten years ago, ten, 15 years ago and started to do the science and technology policy things that need to take place so they've kind of been benefiting from all of those things coming together and then you see new york, maryland and tennessee or by sorry virginia. hard to see from here. so those are the top performers on the global measures that we use and you will see how that plays out. i want to make an observation and talking with the 50 states. one thing we learned is there is

a lot of changes a lot of transformation going on right now. a lot of the legislators were in session and doing new things. a lot of these states were reorganizing the economic development efforts and we found that was common among a lot of states and there was a lot of change, so you can expect some of the things in this report will be different even in the next few weeks and months. so let's talk about what the states are doing and i think what we thought first always there is a lot of streamlining of government. there's agency restructuring, efforts to enhance coordination between the agencies. we find that in a number of states. there's changes in regulatory process these. the agencies are doing that is what happens quicker. then we also find program delivery is being globalized and we see that in work-force development and economic development and across the

board. there's also a critical analysis of tax policies going on. some states are working to broaden the base. about 28 to 30 states are looking at taxing some kind of services and then there's also targeted tax cuts and credits being implemented in the states. we found a renewed focus on business start-ups and helping entrepreneurs through management and technical assistance, loans, microbusiness and we also found productivity competitiveness programs going on and one of those don't necessarily create jobs the people we talked to said that helps the companies that have been here for a long time in the state and we think that's really a worthwhile thing. finally, there is a strong -- again there's a strong emphasis on incentivizing the private-sector investors and this we found to be in many states primarilyith tax credits and we see that quite a

bit. on the infrastructure side we see targeted investments in infrastructure that local communities do the things they need to do. we see the rise of public-private partnerships in the activities going on and in some states like the megaprojects going on and large industrial complexes designing to appeal to a certain kind of customer we are also seeing that happen. then on the export side there is a widespread effort to increase exports of cars and we also found some states, many actually have a strong effort to attract the direct investments. as joan mentioned earlier and tom mentioned earlier there are many states that are doing the science and technology based economic development initiatives, queen initiatives.

some people often refer to as the triple innovation and that means harnessing the resources and capabilities at the universities, combining them with government and business. then on the work force development side, many efforts to retool the workers and efforts to help businesses make shift to the new markets and new technologies and many states are implementing dustin programs, science technology engineering math programs to help make that happen a lot states are getting traction in that particular area. so let me wrap this up and then turn it over to julca for a few concluding comments by saying what we think some of the keys to the state success are? first of all well-designed state development tools, effective workforce development assistance, strong infrastructure. these are three fundamental elements of what we have seen and the work together primarily to help the local economic development community, business is of the local level get things

done the need to get done on the initiatives that make a difference. most of all states must carefully weigh policies to refrain from barriers to private enterprise growth because many of the most innovative and most -- initiatives that will create the most jobs that spring up from the local level from the private enterprise small business and local development communities so it is very important that we find those barriers are not in place. i will turn it over to shall and he will make a few concluding comments and then we can open up for discussions. >> i hope you get a chance to read the report. there was quite a bit of research done here and there was done with intensive effort, but i just want to leave you with a couple of things. first of all, it is very important to understand that we

receive enormous opportunity the next 20 or 30 years and that is what we would call the demographic dividend. in other words the fact that americans are still having children, still having a growing population, and of course some of that coming from immigration as well, that we have enormous opportunity as a country to move forward, and that opportunity is there but the opportunity is also a great obligation because we could conceivably take on the policies that discourage job growth and then we are going to have a very serious social problem and my trouble all over the world working on these issues i can tell you there are many countries you see the approach being permanent underclass, not just in minority populations but across the board and i think this is something we have to address. this should be the major issue and fundamentally i think that the little republics jefferson talked about are the key to everything.

america is a decentralized country and as bigot 400 million people there is no way we could have a centralized government that isn't essentially an autocracy because you cannot run a country that is so diverse and has so many different interests and different kinds of people from the center. you can do a better job from the state and local level on most issues. there are things the federal government needs to do but i think the states and localities are where we have to find the innovation so i think we are all very delighted to be here and to share this with you and for me just one thought which is this isn't a partisan issue at all. as the mayor laguardia who was the mayor when my parents were growing up, and it was funny because in my father's house my grandmother was a socialist and my grandfather was republican and they both comfort for

lagarde office. so as he said there is no democratic or republican way to clean streets and no democratic or republican way to fixing the economy. thank you. [applause] >> now the moment we have been waiting for and that is to hear from our invited guests, our governors and they are going to remove the podium so we can see each other a little better. before we start the discussion, let me flag some housekeeping things. when you speak, governors and members of the business community, don't forget to turn your microphone on and also, when you conclude. i want to introduce or allow them to introduce themselves, the folks that joined us from rhode island and fellow texans so cheryl, would you leave off and say your name and where you're from and where your business is.

the one key [inaudible] >> thank you for being here. >> northern chamber? >> we are about a 30 person cpa firm in rhode island. >> im paul foster, we are an oil refinery in business with refineries in mexico, texas and virginia. spaghetti war in el paso, it? >> yes. >> all right. welcome, all of you. we are joined by folks on c-span as well as folks on the webcast and we have facebook and twitter questions we will save and finally before i begin the discussion i want to remind you all following the discussion about 11:30 or so we will open the floor to members of the press here as well.

let me begin by asking if you have questions for delore and joel about the findings of the study. >> i would like to ask jolie question because it was a good report. you said most of the workers in this country in the future are going to be women and minorities what does that say for the knee of comprehensive immigration bill? >> i should ask you that question. >> you know what i will say. >> i think there has to be a sensible immigration bill but first of the immigrants who are here are here and we have to figure out some way to have a path toward naturalization we've to put something in previous years and try to drive people of

the country. there are changes we need to make an immigration and what i find frustrating is some very talented people who stay in the united states would add a good deal to the economy find it difficult state. and so there has to be more of a skilled based immigration and then last obviously the need for a sense of control in the quarter particularly given what's going on in northern mexico right now. and that is unfortunately part of what sparked what happened in arizona was kind of a panic that took place. so you have to have some sort of policy over the long term but has to come along with the understanding that immigration is one of our major competitive advantages as a country. >> just to follow-up on that control, i was interested in the forecast for the population growth. i'm just curious what the difference or the spread of immigration portion of that

forces now on immigration. >> generally speaking the american fertility rate most recent numbers is considerably higher than it is particularly in europe and japan and korea by itself. now some of that is driven by second and third generation immigrants. so immigration is a part of it. right now one out of every five kids and the united states is hispanic and largely the product of immigration but in the next generation they will have been born here so over time if you look at the hispanic and asian populations they are going to be more and more native born second and third generations. so one thing i get into a lot more in the book is we are going to see more mixed-race couples in california, about 13% of all marriages are multiracial. and we have a multiracial background and i think that is going to become more of a commonality.

i get a lot of criticism from some nativists about running out country which we are going to of balkanize groups except his heart to be balkanized when they are in your family. and the other thing i think is also very important is that people come to this country to be in this country and not come to this country so they can recreate what they had some place else. there'll be ties to your other place. i also find kinds from the former soviet union, from mexico, from korea, there would be virtually no dynamic entrepreneurial economy. you can almost not find a company that's could growing fast and in southern california which does not have a significant number of immigrants. so i think this is absolutely at the core of where we need to go

to the and it took the country is all about. i think there are no greater believers and free enterprises and immigrants. >> go far, i think if we push you over for another moment if you want to go between now and 2015 and take up 100 million people if we are going to have a much stronger population growth than in europe is coming from three places and the natural internal growth and from the massive infusion of hispanics who are ready and further. average age, what, 23, 24 in mexico? and then it is other immigrants as well. if we don't add that we will not have the workers and the assumption of the 2050 getting to 100 million people as a major component on those two issues. >> let's turn to the governors. what is your take on what you've heard this morning and how does

that play out in your state? what are you hearing, duff amar? >> ethical the things postal said are clear. we are all -- i was saying to tom earlier look at for a rhode island, small and dense state. we are a sort of microcosm what has happened to the nation over probably the last years. rhode island's history was if you go back we are one of the wealthiest states in the nation. on the back of manufacturing that developed along the rivers and roadways and by the way you should know i think you are all familiar with the round of floods that have a devastating impact, her plan is right along the river she distinguished herself because we had one in 05 where she should read the book on how to prepare for rutka and recover and never missed

shipment because they had the wisdom to lift all of the machinery up 5 feet so the water is good on the need and when it subsided. but you know, all along the river it was manufacturing which created a full wealth. what we are going through is a state now trying to find our way and i think this is a microcosm of the nation of what is it that is going to drive the wealth creation for the nation if you will going forward, and all of these things i think our, social, we have a big emphasis on our case on the knowledge and innovation because being a small state we are heavy. we are at the top in terms of the fourth year degree awards because we educate a lot of young people like massachusetts at the center for the education. so how do we tap that talent that the entrepreneur should and creates the new economy if you will and at the same time make sure that we are supporting of the manufacturing businesses

like cheryl that are so critical. one of the observations, and i don't know if you have any comments, dole, because i ever fought his when you look at this time period my age and my own career in business, so i've been through five of these recessions and if you go back to the 2000, 2001 which was high-tech if you look at the collapse of all of the technical stocks and so forth it had a very different impact than this one. this was called a real-estate driven with all of the money chasing the real-estate but when you see the unemployment we see the same thing in the low-skilled areas which heavily intent to the construction related, etc.. if you look forward the question is what is the nature of the economy and have to get competitive and figure out how we are going to play in asia and going forward the issues have been through different

recessions in terms of what caused them. >> the first thing we have to do there is a very unfortunate tendency among many localities. more cities and states to say we don't need construction, we don't need me to manufacturing or agriculture or the basic industries and we can concentrate on being hip and cool and the fact of the matter is that is not going to employ very many people were create the kind of democracy that i would like to see and the i would like to see is very critical is that these -- we have to understand in the world economy we have something that is kind of at meese. we are the only country that has dominant high-tech creative segments and we also have tremendous amount of strength in commodities and agriculture and one of the things i talk about in the book and i'm affected by

hanging out with these north dakota dies but part of it is we have a will with 3 billion more people during the same time we have 100 million the world has 3 billion. but many of those people entering into the middle class are beginning to have aspirations for goods and services including agricultural products and the united states is the best country in the world to provide. i think that we are not a small country like singapore that can focus on a couple of industries to country industry stick advantage of its position and do extremely well as they have we're in big country with a big population and we have a lot of natural resources which are one of the things that are going to do well and as delore share on the map there's a high degree of natural resources have tended to do better so i think you have to have a very broad strategy, and i also think that there is illustration why each state has

to come up with its own ideas because each state is like a little republic with its own particular series of strengths and weaknesses. >> governor richard centcom can we go to you? what is your take and what is happening in mexico? >> well, this was an excellent study and it showed how states can do it. one area that was not covered decided if you ask all of these governors who've succeeded in creating jobs to things absent in the study you couldn't possibly do this. but one was how did you get these done and that was coalition building. in my case, with a business community for lowering taxes and creating industries like the movie industry and the space for education reform, terry cole has probably damaged the reputation but she teamed up with me, the chamber of commerce and we got a lot done so you have to have coalition building. secondly you have to have

partisanship which doesn't seem to exist in this city at all. and at the state level when you were dealing with a legislature you are in very pressurized light for 30 days or 60 days' sessions you've got to get things done or you got to balance the budget or you are against the law. that was the part i think needs to be mentioned. another thing states do and have to do is you can't just do policies on some of these. you've got to spend your resources. state resources. in my state we created a private equity program where we put out $400 million from the state investment fund for startup companies and we invested in 38 private equity small companies. we put money out to develop a supercomputer that some of our fastest supercomputer non-commercial so that businesses can participate. we lowered taxes. i make no bones about being a

tax cutting democrat. i am like a endangered species. but we'll a word of the state personal income tax. we lowered capital gains and cut it in half. we created high-wage job credit which basically says if you pay high wages over the prevailing wage you get a tax incentive, rural tax credit. we attracted companies, lee and kravitz from fidelity, that's why they liked us, this is a huge company that went to little mexico and then a new companies like dr. hon host which is a solar company with incentives and basically saying if you, we will reward you but train our people and help our people be part of a technology landscape and worked. we still have economic problems but we are below the unemployment rate and seem to be moving forward.

>> if you want to react briefly before we turn to the -- >> i will give you a question before comments to the other governors but i know you will say there's 50 little republics and it's not one thing or a silver bullet that if we forced you to wait these things, not the performance, but the cause that is a reflection of how you've done the other column said contribute to a healthy or more likely healthy economic climate by state, speak to us a little bit about the reading of the categories, exports, innovation taxes or costs, work force development, infrastructure, i know they are important and very bistate but if you had to pick one's most important would you say? >> i would say the category that has the most potential to create jobs is the innovation side of things. we heard over and over again these are the sorts of things that enable us to react quickly to get to new markets to attract foreign investments. so i think those strategies, the

policies that encourage innovation like a science and technology initiatives, governor richards and talked about the investments that they make, some of the things you are doing in your state with science and technology particularly in biosciences, that is where the attraction has gotten i think. >> i just want to add one quick thing. we do a lot of research on migration and one of the things that we find is that places that are perceived to have a good quality-of-life, but a good quality-of-life that is affordable, that is really the key. and i know that governor richard centcom i live in los angeles and have been involved in the entertainment industry and covering it and being surrounded by it. and one of the reasons people not to go to mexico from the entertainment industry is they perceive it as being affordable and a good place to live. this, and i -- what we are seeing is a lot of the next generation, millennials generation looking for places they can settle down, raise their family, buy house and many parts of the united states right

now particularly sought high tech areas it is simply not in the cards to be able to buy a house. so it is a combination of everything. innovation policy and affordable high quality-of-life if you want to attract those people. and i noticed from the entertainment industry piece i've heard quite a bit about mexico, so as being that is one of the attractions of going there and one of the attractions of even working with delore and people saying i can live a better quality-of-life and have good public schools, those are attractive things to this sort of well educated person but somebody who doesn't particularly wealthy parents. >> one follow on. we did a study from the job growth of 2003 until the crash of 2008 and the correlated that to government spending states and local spending and what we saw was very few exceptions for scarcity as a strong correlation

between the bases with high job growth and low government cost and to be more specific about the migration from great lakes in the northeast to the south and west which is not the big surprise that's been going on for a long time that a noticeable pattern. so what would you say in reaction to that? do you agree with that as a demographic observation and what is behind in your view? >> i don't think it's one thing that definitely people would rather pay less taxes, the more, and states that have cut tax climates, that is an extra thing they have going for them and the biggest case and i've worked with houston and dallas and they are attracting companies that may be headquarters in the northeast or california, but one of the attractions is lower taxes. lower regulation. we found -- i did a lot of work with linda in the rebuilding l.a. after the riots and we found most interesting was also taxes were a problem when we

interviewed entrepreneurs, regulations and the way the government's treated them was actually even higher up on the list of why people left, so it's not just high taxes but it's the sort of attitude of government awards entrepreneurs, how they are treated. if he wanted to start right now in california, any kind of technology company, you have so many different regulatory hurdles except at the high end it doesn't really make sense to be there so i would say taxes are part of it but the regulatory environment is a big part of it, to that. and last, how you are treated. i can't tell you how many times businessmen said i don't want to go to the city into the treated like i am a criminal because i want to build a business. >> quickly this a correlation between high tax states and regulatory environments not favorable to business i would guess the two things go hand in hand or are highly correlated.

>> edward markell? >> welcome the last issue that joel mentioned with respect of businesses are treated we think it is important. and what that means to us is we have got to put ourselves into the shoes of the people who create the jobs and prosperity in the first place and focus in on five things they care the most of and it's really not that complicated. businesses want to locate in places where there are reasonable taxes, great schools. that is number one is i think this idea of the innovation economy is critical. it's about the cost of doing business. it is about the quality-of-life and the quality-of-life means everything 15 minute commute instead of 45 and it means having nice outdoor space to enjoy with your family on the weekend. they want to be in places where there is a strong linkage between institutions of higher location and companies and places where there are responsive governments and we see this all the time and what it also means is states have to figure out which battles they are going to engage in. we are never going to win the

battle of can we write a bigger check than other states to in in place a company to come to delaware's we have to win the battle of being more responsive and flexible and nimble and agile. and so we had a situation last year when our -- we lost within the course of seven months our entire automobile industry. we lost the chrysler plant and the general motors plant. we subsequently lost the refinery and these were thousands of very good paying jobs. we actually had a positive outcome for all three in the case of the chrysler plant, the university of delaware had purchased it. they're putting people to work doing research. general motors was purchased -- that plant was purchased by a company called this core automotive which is making a plug in hybrid and in the refinery will be opening with new leadership. but in the case of general motors plant, for instance, the automotive have literally dozens of places they could go to manufacture their cars.

they were required under the terms of the federal department of energy loan to manufacture their cars and a shattered american automobiles. one to leave could leave to the eckert doesn't have shuddered automobiles. and they chose delaware. we have certain this going for us just by where we are. we've got access to tens of millions of customers with a couple of hours' drive and a strong transportation structure and the support of wilmington which was important that the cause they want to export. we have a great x work force but we were responsive and my stand is to be ridiculously responsive. they told us what they were looking for and we got an offer letter within a day. that doesn't happen too often in the government and leader when they came to delaware to announce they had chosen our state, the founder of the company said we were able to get the key people in delaware to get there faster than to take the family of four out to dinner, and we thought was

important and that is a standard we aspire to every single day whether it is with big companies or small companies and that means listening for a carefully and asking the right questions. so last year when we heard very veto over and over from small companies of an active difficulty accessing the market in any way we can put a program to help them barrault. more recently, the staff who very effectively runs the local company has brought together a number of business leaders throughout the state and what is called first state innovation, which is focused on a maturing of our innovation economy. they're also very involved in our education improvement agenda. we were fortunate just to have won the race to the top competition. we think all of that is an import a signal to send as well. but we think every single day we have got to get better and every single day we have got to come up with something that's different that sets us apart. we introduced legislation last

week instance or two weeks ago the so-called business finder's fee and we think it is the first time in the country anybody has come up with this but basically if you are a delaware company and you are able to reach all to yourself lawyer and partner or customer and encourage them to set up shop in delaware and create jobs, you will each get a purge of tax credit over a three year proposal it is a really referral incentive system and it is something that we all know about from our business community because we -- it is like paying somebody based on a commission. we think we ought to leverage that which is that is best about our state, which is all the businesses who were already there and say we want to make it very much to door incentive to reach out to your colleagues and suppliers and customers and the like to come to delaware as well we've 24 to do. but in the end, and i think the report will be helpful in terms of specific technical programs and solutions in that offer. but absent the right attitude

and absent the right culture of business's understanding that they are very much wanted and desired in the state's the rest of it is meaningless and this is something where we believe we've got to get together the business community, academic community for that matter the organized labor because in the end people want jobs. when you have good jobs and a lot of them and that is when to take care of a lot of other problems and that is where we have to focus every day. >> governor manchin? >> thank you for allowing me and my colleagues to be with you. we enjoy being able to talk about our states but also for the programs put together that highlights and gives us a chance to look at things working elsewhere and we are the laboratories of democracy and it's where things will happen. when i began governor six years

ago in virginia i knew we had to get our financial house in order. all we did is put ourselves in place of every citizen that sits down in the state every night and works through the budget. when you can break the government on to the local level, to the average moms and dads and families struggling every day trying to take care of their families and make sure that you understand what they're dealing with the then you can make changes in government. unless you can connect at that level. we talked about partnerships and without partial to can't go anywhere. it could never figure out because i felt we were all together and call of never seen a successful business without a tremendous work force that was intelligence and commuted in getting the job done and if they are treated well the would be the greatest asset you've ever had. it will mature business no growth. and on the other side of macina good labour force unless they have a place to work and that means a good business to work for so what we got all sides together and we can see my

partner with the chamber and kenny perdue, my partner, we don't make decisions without anybody of the table to read when i first got elected different sides of the fence would say we will have a seat at the table. and not only will you have a seat at the table but if you don't show up for dinner i am going to come looking for you? and that is the approach you have to take. you have to make them sit down and find things you can agree on and i talk about partnerships. without forming partnerships we did and without getting our financial house in orders whenever changed workers' comp. we privatized workers, at a very challenging setting. and no one ever thought i could be done. we did it in a special session in five and half days and now we have one of letting one of the premier workers' comp systems in the country and other states looking at seeing what we did and how we were able to get our house in order and be able to reduce premiums anywhere from 20 to 30%. and then also, we changed the insurance reforms and put

$80 million back in people's pockets by being more aggressive and competitive. the partnerships from the only things i approached out with, don't expect washington to be my provider and i don't expect the state of west virginia to meet every county and man is a public a provider and that is what sometimes everybody looks to. well, let's just vote up a look at your door and someone else will be responsible. i said all i am looking for is a good partnership. we will make it. ..

you are going to have a partner that you never negotiated with and all of you here sitting around this table in business understand what i am speaking of because you have at the end of the day end up with a partner which is usually the government. you never negotiated with any of us. you never sat down and said with the terms are going to be and what my return was going to be so we have established in west virginia a retail government. we know in order for us to be a good partner we have to understand how we grow this and

what we try to do continuously is basically reach out and want you to be successful. we want you to get a return on investment and for that our share of the partnership is this provide a good livable wage with a benefit package and a safety concern for all of our citizens and we are going to have a great partnership. it has worked very well for us. we have grown more jobs in six years and we continue to look for different creative ways. we put $50 million in books for brains and our institutions for research. we are doing everything humanly possible to diversify our economy. we are an energy-based economy as you know and with that comes challenges but with that we provide the energy that has made this nation what it is. we are very proud of that and we have had some difficult times here. as you know we lost 25 miners. i want to thank you all of you here for watching and all of you here and all of the states for their sincere sympathies and best wishes and prayers. these are very strong, good quality people and people always

ask me, in west virginia we do a lot of the heavy lifting. we do the manufacturing. we do the mining. we do it all up and we never complain. they are just hard-working people and they say, why did they do that? i say well they have a love of family like no other people i've been around but most important is their patriotism. the things we do has made this country. the things that we continue to do keeps this country free. so we are very proud of that that we know we can do it better and that is what we are looking at. we are asking the federal government to be our partner, allow us to find the creative ways to create the new energy of the future but don't disregard the energy of the project was a call that has given us what we have, the natural gas energies we have now in our country and we thank in west virginia we can find out and that is why we have to vested so much of our time, effort and money into research.

the other thing is we have broadband high. >> going our entire state. we are the most burr state east of the mississippi and another year to two years maximum we will have every nook and cranny of our little state of west virginia with high-speed broadband and we are very proud of that and we think it will help us tremendously. speak governor thank you for your leadership. before i open the floor to some business observations you all have captive governors who might talk about what mike foster and create job growth for you in your communities. i would like tom donohue to make a few comments. >> i just want to ask one question and i'm looking at this through the perspective of how this was done and what is strong and i start with you governor. you come from business but the nature of the question is, and any of you have had business experience that the question is as you form your governance, as you track your key staff, as you look at who is in your legislative groups, what kind of

business experiences there? are you doing a better job on the state level than we are doing on a federal level to get people,-- somebody made a commet about lawyers but what about people that have been in business? have you found that something you are able to do better than you used to? >> i would say the hardest thing in government is, you are either going to find them on the upstart or on the last leg of their careers. to find them in the moneymaking it is hard to pull in person from businesses that is basically been successful, providing for their family in every realm and take them out. i need this much time in public service so i will never forget i had a gentleman and every time i interview somebody i knew putting stuff together that i had better get people to think the same as i do. if not i spend most of my time trying to convince them what we are trying to do and i couldn't waste any time on that so i try to make philosophically we are

on the same page. there is a man here who is the best person for the job who will not apply for the job and i really needed this person. i said why not? he doesn't want to. as children read about, he doesn't want his children to read about what their salaries are in some of the decisions of people being upset and reading in the paper. he is too much of a private person. i said give me his name and phone number. i called and asked him to come in and we spoke for a while. how do you like your life? i like my life, have a good life. hockey like your country? wouldn't this be a heck of a place if our forefathers took the same position you are taking now? needless to say this person was one of the best employees we have had the last four or five years. that is hard. i'm sure we'll have the stories of recruiting, and sometimes i have heard to jack talk about he is doing things not to give incentives for referrals. how can we get some top management? think about an education or to

an education reclaim education for everything. right now we expect them to do everything for us and we are upset as we don't have the workforce. you name an educator that has had to take a management course, had to take a financial course. they haven't had to do it but yet they spend more time and more effort for policy, more management and more money you spend in education and none of them have any expertise in those areas and we wonder why we are not successful. as you know we are trying to work on that. >> i think tom this is probably one of the most important issues right now and i think the federal government is getting the business community and representatives in the community engage because i know its is extraordinarily difficult. you know, back in our small state what you have seen and i think the demand some business are clear. everybody is having to work with fewer resources so the human

resource demand is enormous but i think if businesses don't start sponsoring and allowing young people, because they think joe was absolutely right, it is young people like people like myself who got into this after i retired. we need people at different stages and in order for that to happen businesses have to be willing to allow their employees to run for public office and give them the time that it takes each date varies in terms of time commitment to the legislature but labor does that. public employee labor unions as well as private have members that are paid by those unions that are encouraged in our legislature both the senate and the house. we have got to be well represented. i credit them for having the wisdom to do that but unless the business community does the same thing and allows them incentivizes their people to get involved i think we are at risk

of losing their full representation. >> governor richardson. >> here i want to give credit to legislatures because if you look at legislatures, and i'm just going to speak for mine, they are citizen legislator so many of them are business leaders, attorneys. many are retired, so i think legislatures that handle the public, they are very, very conscious of the budget. they want to have government, state government more efficient. state government is different. in my cabinet i have a small proportion, very small of business leaders that are part of the administration. a lot of that tom is the pay. people in these economic times, they don't want to sacrifice their families and take a government job for the sake of patriotism. and so, state government i

believe in many cases has to develop and sister were probably more security to attract a wider range of public employees. lastly, it seems to me that, because there is a requirement that most states have that we balance our budget, meaning new mexico it is the law, that we, state governments even though there is some ways like everywhere else, are more budget conscious, more business oriented than the federal government's. certainly, right now, the congress. so, that is my observation. >> they will open the floor to business observations. >> i do think this recession is really focused the attention of folks across the spectrum. we have been successful at ringing some very strong business people into the cabinet but also in picking up on what

governor richardson was saying in our case our legislature, we have got a bipartisan small business caucus. we call them the short or others. brian short as a democrat and in short is a democrat in different parts of the state but they together have gone throughout the state and held a number of hearings with embers of the business community is really focusing in on the things they care most about and it has been very important. we have also got a very engage business community and part led by the three individuals who are here today in the state chambers and is in this table and others and they have been engaged not only on the business issues the legislature deals with but also have been incredibly engaged in the education issues. i'm convinced one of the reasons we won the race to the top competition is because we have a decades long legacy of academic innovation that we have built on and it has been led in part by governments that we have also always had at the table the

state teachers union and our business community. when we went down for our interview with the review panel we literally had sitting next to each other the president of the teachers union and one of the leaders of our business community. everybody understands that we have got a very engaged community and a whole variety of aspects of delaware life and again i think the fact that we really try to have this collaboration and have all the voices that ought the table has been a real plus. >> all sorts of people at different senior levels, chief financial officers, personnel people, marketing people, retire from business. they are all excited because they are going to play gulf and in about 15 months they all want to go back to work. i think it is easier for the states to attract them because they don't have all the problems you have here in washington and i will give you some places to go look gentleman. >> you can just go down and get

a couple of them but anyway thank you for your time. >> one specific thing we did literally on the first day i took office, we launched what we call our government performance review recognizing that not only had their own issues but businesses want to be located in places where they felt their tax money was well spent. we had six loan executives from delaware companies who volunteered to work with state employees over many months to help us focus in on places to save. >> we started off in west virginia, we started at the young professionals because we wanted to find out who these young bright people who are coming back, how we could keep them. they have never been asked to be involved so i don't blame-- sometimes we get so busy that we don't do a good job recruiting, government is not do a good job recruiting. it is not a fertile ground if you will so we changed that and we had a summit this year. we are bringing the young professionals around the state and for this summit and trying

to connect them but also connect them with the jobs we need. i look at it as community service. can you give me two years? can you give me one year? what can you give me? it would be the greatest resume builder you have got. >> lets hear some some folks from business, some of our nation's leading governors here. what are you hearing and what do you think they can do to foster job creation? russell, let's start with you. >> thank you dr. spellings. again i am russell kitchner with the public university system and i represent the higher education sector but a special dimension of that sector. we are april for-profit institution than in 2000 to serve 2000 students and is indicated earlier now serves 63,000. are sector is one of those high-growth industries that has great potential for helping to

assist the governors and their objectives in identifying the qualified, prepared workforce. the fact that we are located in charles town west virginia is due in large part to those items that governor manchin outlined in terms of the quality of the environment and be amenable attitude of the state toward private industry, including new and emerging industries. one of the challenges we are finding relates to a dimension that joel mentioned and that is the attitude of the regulatory attitude of government. and right now to some extent i think our department of education, the united states department of education, is working at cross purposes in terms of that attitude, that it is interesting -- not for of the five governor ceded here today do not have overly cumbersome regulatory policies in place related to higher education.

there is a call on the part of the united states department of education, for every state, to have a much more rigorous regulatory process in place having to do with higher education institutions and i think there is a legitimate need for greater accountability in higher education. i'm not sure to what extent that accountability needs to be tied to encumbering regulatory environment. i would simply pose the question to the governor, to what extent can we work with you and what can we do is to assist you in preparing that workforce and doing it in a way that does not trigger some form of overly regulatory environment? >> thank you very much. >> i want to thank you first of all virtues in west virginia and i'm hoping we are working as well as we should be working with you but with that being said articulation we are mandated to put a penny in our education.

we are mandated to pay for primary and secondary education and to that tune, if you don't pay your taxes in our state, we will take your property to pay for primary and secondary education. that is how serious are good to me higher education is more in a competitive-- and has to add value. our forefathers felt there was value to be added via increased collagen without higher education has to be able to move in the marketplace. i am looking for the best bang for our buck in higher education and you watched all of us wanted time-- comes time to cut education or cut our budget we wrote that higher education much more quickly than primary and secondary because of the setup so with that being said higher education has to be able to react quicker, show more of a value to the community and the area where it operates out of, so i try to give them as much flexibility and i push them as hard as they canada want them to be as good as they can but i can't put a cap on them to where

they can grow and they can spread out and take advantage of market forces. with that, but is no and we will help you while you can. >> governor pawlenty. >> one of my minnesota friends on the spot here but david olson who leads our chamber of commerce also serves as the head of their minnesota state college and university boards that we have the unique situation where somebody who is steeped in business policy and business background also now has been working in the trenches as the leader of our state college and university system for a good number of years and he has come away with that with lessons learned and some frustration so i would invite david to weigh in on this issue. >> thank you governor governor and there has been some-- we have made some progress but there has been some frustration and a lot of it for us is just the public system. there is just a load of bureaucracy and i think we have to try to get past that. we have a big system. we have 53 campuses. we have thousands of students

and i actually think we do a very good job with our junior schools. we struggle a little bit with our four year schools as you know and some of that has to do with some of the union issues and those kinds of things, but we are making progress but it is not easy. >> terry. see i was impressed and in particular i like seeing one of the trends as being public private harder ships as being on the rise and necessary as we move forward. one of the things governor richardson especially in his first term did so well is to immediately after being elect did, invite myself, together with others like i had here today with me, to talk about what could be done and the governor talked with us about trying to identify the problems and then we would move forward with whatever partnership we

would need to try to defeat. i will tell you this, neither the public or private sector can do this on the wrong. there is no way it can happen on their own. for the partnerships are incredibly important that i will also say, and i loved the governors to a response to this, but it is enormously difficult to bring together public and private sector, and in a partnership to tackle a problem and truly dead results from it. governor richardson has been successful in many ways to bring us together to do this. some of the efforts however have not worked as well, but most have and they are difficult. as a look at the report and see the need for this in order to solve our problems as we move forward, how can we make these public-private sector partnerships more successful? >> governor she gave you earlier

marks. [laughter] >> by the way i want to say, tom ann-margret and bill got these accolades by everybody. i am going to give an accolade to my second bus in my life and that is dan anderson sitting over there. he hasn't said a word yet but he is the head of this whole effort that you put together to create jobs and i just want to say he was a terrific boss and i work for him in a republican administration. he was a deputy assistant secretary of state and i do want to say after working with stan, i saw the light and became a democrat. [laughter] can somebody else answer this question because i just gave as good story. >> let me take a stab at it because i think it puts a figure on what is extraordinarily important. what we have tried to do, on two fronts.

and you are engaging higher at one is the world they play in education, because higher education, continuing in k-12, the fact is that higher ed is producing the teachers. and what i have seen in my years of this and some of us were talking about this a little bit earlier, those of their frustrations governors have two comptroller with the governance higher education and k-12 systems. when you try to bridge those, how do you get that to happen? one of the things that i did about five years ago is i created a council. a council that i chair and at that counsel are the chairs of the two boards that oversee higher ed as well as k-12. also the two commissioners, and we have a small stage so it is

easier to get everybody together. we have an association of the two independent institutions and they elect one of their president as head of that. as head of economic development and workforce training etc.. the point is the two areas that we need to bridge that our education because of the a key role and economic development because it is all about the brainpower that is coming-- that is at work in higher ed and how we cap into that and turn it into entrepreneurial activity. but you first have got to get them together and you have been hearing other governors say what the issues are. and then begin to build on common interests. the other thing i would say is, i think we have all seen in terms of research funding, a lot of the research particularly higher ed tends to be highly compartmentalized. a lot of the funding for research now, i was looking at

collaborative kinds of research activities. we created research alliance in rhode island, which is bringing together the independent higher institutions as well as our public universities and saying listen, it is in your interest to figure out how you capitalize on strength that you can draw on together to put your best face forward in terms of research grants. to get the researchers to start working together and spinning out about things in terms of businesses and innovation and so forth so that can happen but i find you have to get them all around the table and i know it is easier for me than some of my fellow governors. i have a smaller stay. i am 38 and 47 so we get everybody together and we try to do that regularly to begin to sort of foster that. >> governor richardson and then we are going to turn to infrastructure and trade issues and get a little specific your. >> we are fortunate in new mexico to have leaders like

terry that help bring the business community together but one thing i did and it is along the lines that don mentioned that he said it in a more fancy way. i like to create tax forces and commissions. never had a real pressing problem, i would create a commission and it wasn't just for the purpose of meaning. we actually did things and business leaders like to be part of them because in the end, the package that that commission came out with we put before the legislature, so anybody that says that meetings and summits, getting people together around the table does not work is wrong, because it does. this is why i take a summit like this as enormously useful. now there has to be follow-up and there has to be creating 20 million jobs in 10 years. it is going to take a lot of resources and follow-up. >> this goes to the issue of public-private partnerships in higher education. it is pretty clear if you look

at the mouth, that the health and human services publicly subsidized health care social service cluster of federal and state budgets is the main challenge we face in terms of where resources are going in relative terms, so for for the remainder budget categories, many which are equally more important like k-12 and higher education, we have to find a way to do those more efficiently, more effectively with broader access and i think it is pretty clear, the handwriting is on the wall that it pushed another, not all that for the undergraduate experience is going to move my mind. the question is going to be, who were going to be the early entrance into that space? david is sometimes frustrated about the pace of change in the public system. if you think about how change occurs, transformational change coming from a breakthrough in technology with competition can sometimes be an accelerant, so when you see the fastest growth in higher education and what it

means for economies of scale, access, quality control and the like, the on line space i think it's really quite compelling and interesting. one of the ways we could have public private partnerships is when you look at the most aggressive, most innovative, most entrepreneurial providers of the content and service to tend to be in the private sector. they don't have the same kind of imitations legally and otherwise as the public sector does so some blending of those efforts might be a nice opportunity for public private murder should. i know the university of phoenix has a lot of attention and minneapolis we have an on line graduate institution that is growing rapidly but in the very near future i think higher education is going to be blindsided by this phenomena and wasted they don't even see coming. i think within 20 years you are going to have the equivalent not as itunes but icollege. much of the replicable undergraduate experience,

spanish one-to-one and econ 101 is going going to be in digital format available much more efficiently and effectively from where you want, how you wanted and what you wanted and it is going to disrupt i think in a very positive way traditional delivery of the service. i think a lot of that is going to speak to public-private partnership and i'm excited about that future but i think the current higher ed structure platform is very ill-suited and very ill prepared to do with what is coming. >> margaret if i could just barely quickly, basically what tim touched on their, the graduates and waits-- rates are horrific and throughout the country. the private sector has a much higher graduation rate than any public and if you look at how the money is doled out it is based on full-time equivalent. fte's they call full-time equivalent and they are always fighting over how much they should get for fte. it is not just going to be

waited on what you have got coming in the door but what you are taking out the door because we haven't put the rubber to the road the way we should. private does that much better. i talked to a private entrepreneur and the private arena of higher education who had 17 years prior to that in the public and i said, what enables you to be successful? he told me, first of all we don't have all the restraints and regulations and controls that you have on all your public institutions and the more we put on, the more we impede basically your success. with that he said also took me three or four years to deregulate myself and sitting there waiting for someone to send me a check. i figured i had to go out and make it and once he figured out he was in the entrepreneurial type atmosphere than there was no limits to what he could did and it is unbelievable the funding. >> i'm going to turn that into a segue on infrastructure including the topic of broadband, which i know you all

of our expert on. in fact i am going to ask you if you would decline to speak to that. would easy about the importance of them to structure including broadband. p. is from verizon. he is the medium pitch over the playground. >> there's no question, we sought in the report today. we talk about infrastructure creating growth conducive conditions. the broadband infrastructure is the erie canal of the future, or the president if you will in terms of enabling technology and maybe i will mention a couple of things i've experienced in delaware that i think happened at the state level, some that worked very well in some that maybe not so well at examples of how this can all take place. first i will talk about the state of the customer. delaware decided several years ago that they wanted to connect hall of their businesses with all of their locations including the schools with high-speed broadband infrastructure, which

was great because now the state of course had advantage of that infrastructure. the additional advantage that brought to the state of delaware was an infrastructure builder like for rice and then had an extremely robust that on network throughout our whole state, having the state as an anchor customer. now if anyone comes in and they want connections, a robust backbone we are able to serve them so the state can play a whole huge world and the customer in moving this along. next i will just mention the state regulator. of course the rise and is building its bios network, which is our fiber to the premises, our homes. governor manchin mentioned the need for broadband down to every nook and cranny in the state. what we have done with our fiber network is we are continually showing up in the areas where we built our fiber. in delaware having some of the highest bid of connections right down to the residential areas. one of the duties in delaware it is we have a lot of local

governments. large parts of the state are unincorporated which meant when we want to get our video franchise which was the anchor service which allows us to make the economics work for this we had a one-stop shop that the state agency. we were able to get our franchise and bingo, we had 75% of the area of the state where we can then go ahead and build and it was much easier than a lot of are states where we have to go birthed by birth to get our franchise. i will also mention that on the other hand, we did have a municipality in delaware, where they put overly burdensome requirements on us, and they could really, they really did wind up stifling our ability to grow and now we are not investing as heavily in that particular municipality. it is not just things that are necessarily revenue-generating for the municipality in the areas. it has to do with things like

service requirements, reporting requirements, all the kinds of compliance that they can put on it, which makes the investment much tougher to justify. some examples of customers and regulators were states can make a big difference in seeing how quick this important infrastructure is. >> i'm also going to ask you, since you are used to dealing with other kinds of the structure in the oil refinery business, why don't you speak to that issue and then we will have our policymakers react also. >> one thing that has occurred to me is the energy infrastructure in the country has aged pretty significantly and we haven't kept up. it is more of a national issue than a state issue, but if we don't put significant, very significant capital into the infrastructure for energy throughout the country we are going to be facing very

significant problems down the road. i am also concerned on that same line about the energy policy that is being discussed nationally and i just think we need to make sure that we don't put policies in place that discourage the production and distribution of energy and that we create an environment that is a framework to the energy industry. >> governor, you are in a report. >> well i wanted one of our group over here to comment that we focused on this. verizon has put in bios and rhode island is supporting all of that and i think we have 95% of the state now wired up for broadband and as you say margaret we show up pretty well

in the top 10 in most of the penetration has been very important. john is the executive director, one of our larger chamber organizations and that is north of the capital city where this was the last piece really, some rural areas in particular where we got the broadband installed. >> one of the advantages of having a small state, didn't it didn't take us that long to get up to 95% coverage in the state. it is a pub-- political state as most dates are but sometimes i think it smallness make it more intense so i think it kind of covered it. >> we have just been joined by the governor of the great lone star state, my governor, governor rick perry.

governor, thank you for being here. we are engaging in a stimulating discussion about how we can all contribute to job and economic growth and we have heard from some business folks and our governors also. >> we have the way to do it. lascaux. >> you do? that is our fellow texas braggadocio that a report shows texas very favorably and i'm going to give you a second-- [inaudible] >> you don't need to worry, margaret has been doing your job. >> we trained her well. thank you all. sorry we were tardy in coming in. we had a meeting this morning with janet napolitano, talking about various and sundry issues. the biggest focus on people's minds is obviously the oil spill. we have also got issues of order security and that is actually what we were talking about, kind

of shared with her some of our great concerns. mexico is the number one trading partner that texas has so obviously having abe order that is secure but does allow for the free flow of commerce is very important, so i know josé cuevas and of course paul foster is just on the way here. is a matter of fact his wife is a very successful businesswoman in mexico and we have serious, serious concerns about what is going on in mexico, and i hope this administration is helpful in every way that it can be to president calderon, because getting that border save, getting that order secure is very important for what we do and in a sense of commerce and

jobs creation and economic development. i don't know if you know this margaret but breaking news today , chief executive-- tim are you paying attention? chief executive magazine named texas number one in business for the fourth year in and are broke. >> aren't you the publisher of that magazine, read? lascaux. >> i kind of feel like it. i have been on the cover of it more than i have "newsweek". you know, tim and i are great examples of what we happen to believe in, of states competing against each other. we have a lot of fun poking fun at each other but at the end of the day, i want him to be my competitor. i want don to be wide competitor. it kind of gets back to some say a little too pollyannaish.

a document called the united states constitution and the tenth amendment where states actually are free to compete against each other and not have a national, one-size-fits-all economic policy or health care policy or what have you. and that is what has driven us in texas to have a state that has tax policy that is fair. i tell people, we think it is kind of good for you to keep more of what you make, and the regulatory policy that is fair and predictable. caterpillar didn't shut down into union heavy states and moved their engine manufacturing facility to texas. if they were concerned about the regulatory climate being pulled out from under them and years to come. we have the most sweeping tort reform in the nation in texas. it was passed in 2003 and

arguably it has saved billions of dollars. the medical community and the professionals and in the health care delivery know the savings. if you want an anecdotal story, this bond krista's hospital, a 26 hospitalwide hospital. they are not-for-profit charitable type of delivery. they were spending $100 million a year on defense costs and the state of texas in 2002 i believe, which the year before we put tort reform into place. last year, they spent $2 million for defense costs. you know what happen? those dollars flowed back into those hospitals and people got better care and they got advanced technology into those hospitals, so the blueprint is there. i tell people, governing is pretty simple. don't spend all the money.

that is the first one. have a tax and regulatory policy that is fair and believable and doesn't allow for over suing and then fund appropriately and accountable public school system so people like caterpillar or medtronic's that came out of the bay bay area of california, a medical device company who is moving there. know that there will be a skilled workforce and then get out of the way government and let the private sector do with the private sector does. is my time up, tim? [laughter] thank you. >> one of the things we want to make sure we talk about before relieved in the 15 minutes or conclude this discussion is the whole issue of trading governor perry you raised it and governor markell in addition to texas being called out as a leader in this area you all and delaware are as well and any of you want to speak to your trade strategy and then i'm going to ask him to say a word about all we do to promote trade.

>> first i think at the start of having the right overall environment for business general and i talked about that earlier, putting ourselves in the shoes of people and creating prosperity in the first place. it means trying to be to industry to specific. i came out of the technology industry and my experiences even the best venture capitalists make mistakes when they try to pick a winning company and i think those positions are more difficult when they are put in the hands of people who are not trained to make those decisions. what we want to do is we want to create an overall environment where entrepreneurs and businesses of all kinds of issues can be successful. when it comes to the trade issue specifically i think it really means playing to your strengths and we are fortunate in delaware we have companies like dupont and astrazeneca who do export. we have a strong culture history. they export a lot of their product. just recently a company called motech purchased a ceo plant

that was making solar panels. vo-tech came in, so it is about building a must protect-- relationships. we have people who market and people who provide technical assistance to delaware companies who are looking to increase their exports. it also means fostering strong ties with her institutions of higher education. let's face it come across the country many of the graduate students particularly in the sciences come from other countries and we want more of those folks to stay here and do business in our state and foster ties with the countries they came from. and also when it comes to the k-12 piece that is going to be a critically important part as well, not just having a k-12 system but also to make sure our students today are little kids, middle school students and high school students recognize the challenges that they face are unlike anything we ever faced in the sense that when i was getting out of high school, getting into the job market

basically competing against other people in the region. now of course they are literally competing against the bus in the world because they make a big mistake when we tend to think these other countries are-- and obviously globalization has been a hot topic for two decades now but until really just the last few years everybody that it was about moving the call center jobs in the low-wage manufacturing jobs. that is not just what it is about here. companies are moving big r&d operations and really expensive operations to these countries as well so one of the critical components is making sure our kids recognized the new world in which they are operating and competing. that means making sure that they really to understand foreign languages, that they can work cross-border. they ought to be working cross-border while they are in school with kids from other countries because that is the environment they are going to be living and in down the road. there are some near-term things but most importantly is what kind of steps are we putting

into place now to make sure 20 years from now our kids are totally prepared to be competing and leading and a world where the local economy is interconnected. >> let's hear from the rest of the governor's first. there is a lot of stuff going on in your state or khomeini of our major members who are located dared to trading all around the world. we have in minnesota the highest per capita concentration of fortune 500 companies in the country but as they look to their future into growth, they are concerned about demographics. they are concerned about what are the things that will lead to growth and there are warning sides and we are really glad rick joined us. i.t. zimon-- if i may digress for a second. on the job growth in the country in the 2007/2000 eight time period have for more of it occurred in one state for the

whole country and it was texas. if you want to see some of the most interesting studies, case studies on relative economic growth with different approaches in mind various publications have studied texas and california, comparably sized states, with different approaches and attitudes as it relates to taxation, regulation, business climate and candidly texas mops up. that is the leadership, tone and agenda that rick perry has said as governor. there a lot of lessons i think to be learned from a relative comparison between california and texas so i'm glad you have joined as rick and great job for the work you are doing in texas. from minnesota standpoint i would just say where i started, which is cause me to be competitive in minnesota has other advantage is that we can't be so smug about how special we think we are to price themselves out of the market. much of our workforce in the the state of minnesota is a little more diverse than perhaps other

states who are not as reliant on one particular sector as some other state that i want to just emphasize that if you like dynamic solutions, if you like entrepreneurial spirit, if you like the ability for organizations to be a little smaller, a little more nimble, little more dynamic, many of the solutions have to be state driven. the 50 little republics as we started this out. i analogize it in my discussion, if you want the future to look like general motors in the 1970s, one-size-fits-all bureaucracies with cost structures that are locked in, lacking in dynamic quality or do you want the future to look more like apple, and ipad or iphone? in other words small organizations, more and nimble, quicker information at your fingertips. which model do you like better? i don't think the future is general motors from 30 years ago. i think the future looks a lot more like an ipad, whether it is education, weathers health

care or economic development and frankly big standardized command-and-control systems that look like 1940 industrial models are not the future. i worry about that being the washington d.c. mindset as opposed to more nimble dynamic approach is coming to the state and so that is why i think the theme of this conference, where we started which is different states with different backgrounds, histories agendas, strengths, weaknesses are babil and quickly able to address those changing needs. for minnesota last player to strengths, we have got a reproductive, highly inventive workforce and we need to keep it that way and it speaks to keeping our education system strong. if we are going to attract risk-taking and entrepreneurs we have got to get our cost more competitive and we have made good progress in the last five or 10 years, but more needs to be done. >> i think it is good to hear, think every business person of

all different sizes knows that trade is the issue. you have got to figure out, asia-pacific is growing and expanding and has all those billions of people that are looking for a standard of living and we have taken them for granted for 100 years. ask hope global, the medium-size business, why do you comment on how important this is this becaf a bank affects not just large businesses but all size businesses. >> thank you governor. hope global is a tax domain structure and we celebrated 125 years last year so we are one of the oldest new england primary companies however you also have operations in mexico. we have operations in the check republic and detroit. we are 75% automotive so we know the competing world. i am an automotive brad. i started with gm almost 30 years ago. my hairdresser knows the color.

that bureaucracy is there but it is changing. i am going to china at the end of this month, looking at a plant in shanghai as well. globalist been shifting to china for the last years. they buy here and we ship it over there, put them in boots and they ship them back because as you all remember 10 years ago we grabbed ahold of a pair of shoelaces and you get snap, snap. the technology, there is nothing mundane about textiles in a more. there's nothing mundane about anything we manufactured here in the united states and it needs to it needs to stay in the united states and we talk about free trade, it is not free. you go over there and do business. the czech republic, i've just shut down an operation in ireland and shut one down in france. those countries have resources to help their businesses move to the eastern bloc. and then what they will tell you is keep your company on roller skates because you are going to

look to move again and you are going to to move again. i listen to the passion that is a pair monks the states. it is happening here in the united states. i love your report. i'd love to no how you see business is slowing because the competition is there for us. as i mentioned we are going to shanghai. we ship everywhere. our operations and i do have lived in everywhere. i lived in texas for five years and i've lived in michigan. >> rhode island. >> i've lived in canada and europe and i've lived in mexico and i will tell you i am the happiest i have ever been to be in rhode island. there is no question about that. despite the river. part of that is what you guys have mentioned. i've heard a couple of very innovative ideas that you can't be like a verizon and only worry about the at&t customers. you've got to be worrying about bigger verizon customers. that is a business i will tell you, don't grow within a

customer and leslie take care of the ones i have so your customer service, john gregory from the chamber is saying what can i do and he's offering me computers from the local business and giving me a room and the governors on the phone saying what can i do? i say see a need that unemployment week waived and it is done. you are taking care of, you are business these days and everyone is right there at your fingertips but free trade is not happening. if i do business in the czech republic and when i do business here, we bring companies and then we give them everything. we let them do whatever they want to do. you will go over there and use their people. you will use their suppliers. you will mandate in a whole different way. tried to get a patent for the united states versus in europe. it is not right four it is not level and we need to take care of our manufacturing right here because-- and we need to stop this roller skating thing. i agree with the different

states but we need to stabilize and we need to grow. we need to worry about getting our business is bigger versus where can i go for a better tax base and trust me, you gentlemen no i think of those things with the river. but seriously, the free trade needs to be different and the second thing i wanted to bring up was you really need to keep, take care what you have got. don't keep talking about bringing new businesses in. take care what you have got because those are the ones that exists. >> we will have kind of the last word and then we are going to bring in the. >> a last question on that. i'm courage to hear you speak about we should be keeping our businesses in the united states and i want you to know west virginia is only seven so you can come here to mad but with that being said what attracted you? why did you leave? what made you leave the u.s.? all the companies think they have to go somewhere else are they find out the grass is

greener and they can't make it. why do we have to lose you to begin with? >> i haven't left at all. my north american operations services in north america and kansas. i have different products. i have one of% of north american business and 70% of european business and i'm going to shanghai to take care of that business. i shipped to japan, prototypes for my rhode island headquarters. the headquarters of my companies in rhode island. that is where the design development and future growth of my accounting and unfortunately my computers are under water as well. we run everything from rhode island. i haven't less. >> you close down in ireland and close down in the czech republic >> that is absolutely correct that ireland and france went to check. so when they talk about those governments, business in ireland, a business in france, you can't do business there. i will not tell you.

>> ds to the question, why did you leave to begin with? and you have an answer that yet. you had an operation in the united states and then you went to ireland or you went to the czech republic. >> i did not leave. what is in the u.s. stayed in the u.s.. i bought ireland. i bought france and shut them down and moved them to check back. the businesses, the headquarters here. >> it is a simple issue. 95% of the company said american people sell to live another part of the world. we have a two-part challenge. one is to keep as much as we can in the united states that is serving the united states and the nafta countries and others, but i heard somebody criticizing pepsico the other day for building to bottling plants in

china. let me tell you, we are not going to bottle pensacola in new york and ship it to china. there is a reason people are putting plans elsewhere in the world, to get it that 95% of the people that are going to create the jobs here in the united states because our intellectual property and because of our technology and our innovation. the point i am going to say and 30 seconds we said at the beginning of the year the way to create these 20 million jobs is to start by doubling our exports and then doubling them again, and doing a number of things on infrastructure and doing issues on energy. the president of the united states took that part of our plan literally, he told us he did, and put it in the state of the union address. the only problem is they are not doing anything about it because they can't get the congress to move on the free trade agreements.

the free trade agreements with colombia, korea and panama are all going to be usurped by canada and the e.u. and it is going to cost us 500,000 jobs. we have got a real challenge here. so, but the big issue is american, most american companies are keeping their north american stuff here with some very visible exceptions and they are expanding around the world to get to other markets. we need to do do more of it and do it in a hurry. >> can i have one quick comment? margaret, can i have one quick comment? >> sure. where are you? there you are. >> i want to take out a page of governor manchin's the state is not looking to the bed to ask their problem and municipality should not be looking to the states to fix their problems. i am an entrepreneur and i started the technology six years ago. we have had over 3000% growth.

one of the things no one here has mentioned is the fact that no one has talked about looking to the opera newer stem cells. one of the things we are doing in west virginia and i'm working with our head of commerce, is building a mentor protége relationship where people like me who know how to grow a company are going to spend some of their time helping our contemporaries and our brothers and i would lay the challenge to every entrepreneur in this room that is successful to try and work with. i mentor 32 ceos right now. i do it because i only sleep two hours a night and it is the sleep i need but i believe that we need to take ownership for entrepreneurship at them are prospective states, and i feel it is an important thing. >> thank you harry and we at the chamber very much embraced that notion also. it is time to open the floor to the press so if everyone will stay in their seats, governors.

business members you may be called upon as well. >> i mary berger with-- [inaudible] [inaudible] >> on washington journal tomorrow morning "the wall street journal" looks at the federal response to the oil spill and the gulf of mexico. we will examine the role of credit rating agencies and the financial crisis with the commodity futures trading commission. they can call in with their questions for alec mcgillis, co-author of the book, landmark, the inside story of america's new health care law. washington journal is live on c-span every day at 7:00 a.m. eastern.