in a done a lot of work working with different states. what strikes me as one senses how remarkable it is in this sense that it is not in illinois, not at california, not a rhode island. so the egregious problems are a gracious overpayment drew up in conversation at a good employees. i spent a little time running a few numbers to show how compensation for unemployed wisconsin could compare to a private set her work repair my cat. wisconsin state and local employees choose salaries a little bit below the private sector is a similar education and experience to get. maybe 5% were the difference comes in the same benefits, in terms of the health care or a payless them. at the local retiree benefits

that can often be generous. i look inside and the wisconsin state after the full career of 30 years, which is considered a full career would receive a pension of $32,000 a year from their retirement system, plus around $13,000 per year from social security peers about the $45,000 a retirement income based on an average final earning around $54,000. but instead of 401(k) plan, they get $88,000 in guaranteed benefits say that they work or the same salary he'll end up with $21,000 if they wanted to

get guaranteed stable retirement income than employees in wisconsin retirement system get. you get the same contributions in this requiring on the employees contribute to the pension system, even after that the benefits are more generous than what people in a private or get. so there is a comparability issue that is very tough to get out because at the benefits are very difficult to figure out. salaries are easy to look at. additional benefit that many public employees get its retiree health benefits. this is a big difference between state and local governments and wisconsin, where the state-level retiree health benefit or not all that generous compared to california or ohio. the local level, benefits can be extremely generous. the milwaukee retirement system

in the hot coverage you get after you've retired i believe is one of the most generous in the country. according to their accounting reports, it's the equivalent of getting an extra 17% of pay each year. not something a private set her work are almost never get these days. so is hidden benefits that we really have to account for coming even if salaries are a little bit lower, i called at the benefits more then make up that difference. what that tells you is there is an issue of fairness. you want public employees to be compensated comparably to private set workers. you want to account for how much experience and how much education you havecome up to my thing is roughly comparable between the public sector employees getting paid the compensation and taxpayers who are providing that. in a lot of cases that's got a little bit out of whack. i think one of the poinsettias come up in terms of his

bargaining is this disparity between the benefits of the retiree at the state and local levels is really interesting. part of it comes that essentially the bargaining power , the buyer can experience of local government relative to large public sector unions is difficult. the state government is bigger. even in many states they have difficulty partnering effectively. local government has a hard time because the public to unions are large and well organized in a school date should my go at this every year. i think even more tools to negotiate a little bit more effectively can bring this back in line and give a more stable and more fair level of conversation, some in that will keep in expenditures and things other than cost if you think about schools are being squeezed in terms of things like that.

probably that can come because compensation costs are racing. i think you want to have a greater comparability between public and private sector conversation in the burgeoning girls in particular to tools that you don't know what the outcome is going to be. it allows a process that can produce over time. >> just a couple thoughts. one on your analysis of private public dirt, one of the interesting points i made a net privacy today, say it again now as i said throughout this process my respect for people who go into public service. i said at last year no say it again and i understand people go for different reasons and it's 99 out of 100 not because of the benefits or their components. but there is a disparity. but will be dead by then about trying to address unevenness between private sector.

it was about addressing the long-term budget issues. looking now to the future both the state and particularly local governors. if i tried to come in enough day came in and tried to specs that, i would try making modest adjustment to employee payroll contributions not the benefits themselves, but the retirement system or things like health care. one year we went to the option of saying instead of that, let's do for four months one week a month to 35 hour work week all in an attempt to lay project people's jobs and at the same time as jobs ultimately provide to the public. in nearly every instance, largest unions at the county said forget it. but rather had before 500 people laid out because essentially their message was to be gone in a couple years.

our employees will come back from my often don't have given up anything in terms of our benefits. what we did was not take benefits away. it was to make realistic opportunities for contributions to pay for those and the irony is wisconsin's case now is matching their pension contribution. engine for state employees is 100% funding. we are not taking benefits away from people. get illinois where they proclaimed in springfield they were going to make reforms, and they have a pension system that lets how to find it and they've got the speaker democrat down there in the past talking about reducing the pension benefit itself for retirees. he don't make structural changes in the finance interface with the horrible decisions on the tail end. by doing this, we get ahead of the curve, so were better off on that is called us credit positive, but it's also about protecting not only the taxpayer, but ultimately their

career in public service and then at a certain expectation when they require that they will be benefit they are in states that don't make those changes that will be a problem. one other interesting thing is to put this in comparison with the public or, i've got a younger brother a few years younger in this debate was happening last year, he would point out to me. he and his wife and family are typical metaclass family from wisconsin. my brother is a minister at a local hotel and works part-time as a bartender. wife works at a department store. they've got two beautiful daughters, my nieces. you're the epitome of a middle-class family in wisconsin. he said to me shaking his head, i pay more than $800 a month for the health insurance premium and a little bit i set aside for 401(k). you're asking for a fraction of that and people are upset about it. to me that was the disconnect a lot of folks have who had worked outside of government that will

be scored is not radical. it's actually still pretty generous compared to what most people are outside of government. it is a very reasonable expectation to make sure we can pay for the benefits we ultimately offer. >> i did a quick calculation where i showed that to match the pension benefit that a full career wisconsin state employee with good and to get a guaranteed benefit in retirement as they do come a private sector work with the same salary would invest somewhere close to a third of their salary for 401(k). so one of the things you focus on the main contributions the same when one of the defenses is benefit productions and making contributions based on a formula in the background. that formula is generous. almost nobody today can put a third of their income into a 401(k). that's really a disparity there would be to do more to boost private savings, no question about that.

getting the comparability there really does make sense. these things are just very, very difficult on people because around the country, particularly when ellicott pensions with a contribution to state pensions and medical pensions has gone up because the are dropped and that the costs borne by taxpayers. i think it makes sense to try to smooth that out going forward. it's going to be a tricky situation, this certainly wisconsin is a much better situation than in illinois or things are pretty dire. >> some of the reforms are in place. but it's been the effect across theater at the local level on budgets? are using dynamic effects to anticipated? >> it's tremendous. in fact, early on throughout this process we did a website i'd wia.gov come up with a map of all 72 counties from every different county, from other jurisdictions about school

districts to pass budgets for the property tax levy didn't go up or they pointed out because the reforms they were able to -- the great example is to convert it took a $400,000 deficit and turned it into a million hot dollar surplus. the is set to hire more teachers and ultimately said about $300,000 aside for merit pay. we have seen one of the great example as i get a kick out of is the mayor of milwaukee, tom barrett ran against me for governor in march nursery debated this effect but we were proposing would devastate the city. on august 8, the comptroller reported to the city council that are reforms will save net -- net savings from the city of milwaukee somewhere between 11 and $19. of course he was asked by reporter at the time if he thought as to the judgment of the city that had but a governor

deserves the credit with response that it's a false question. i don't know how false that is. but it's pretty simply the facts. i mean, i'm a great believer in the truth. if you repeat the truth over and over again no matter how many attack at, no matter how many distortions out there come sooner or later they believed people gravitate towards the truth. for us in wisconsin are two key benchmark but i think to find the truth in her state. one was september 1st in my two sons, matt and alex and every other state goes back to school and in nearly every school district across the state, families saw their schools for the same or better. they sought in many cases the reforms not only didn't cause damage, they actually empowered local school districts to make financial decisions and not the budget in some cases hire more teachers. but also, the reforms are just about finance his peer up a free

work worlds and other changes, now schools and local governments can hire and fire based on merit. we can pay based on performance. the music and that the best and brightest in our classrooms and government positions across the state. i was doing a q&a in northern wisconsin a couple weeks back and at the end one of the superintendents of the small school districts cut up and made a statement intact about how reforms save the money and it's good to keep their staff in place. he said something almost as an afterthought as he went down. i heard and admitted him up and repeated. he said the best part isn't just the finances. the best part is i go back to my office and spend my time worrying about curriculum and not just about grievances. and he said for a specific request rates. change the dynamic in our state. you're not going to predecessor was the governor with total

democrat-controlled account hundreds of millions of dollars in public education. the difference was they didn't get this schools anyway to respond to that. milwaukee -- it's interesting there is a situation where young woman with india in a new teacher of the year by the english teachers council in wisconsin. she got this great award a week later because of these cuts she was laid off. why is that? because the old collective bargaining contracts, last in, first out. and for the best teachers in wisconsin over some of the first one played out. but that's changed now. the process has changed other than a handful of school districts to ever not been in contract before reforms and into effect. for everybody else is wide open. in indiana was damaged in most any data for state employees can mistake out better. get a big difference was a couple of weeks ago when i got property tax bills and for the first time takes years, the tax levey went on wisconsin.

our local efforts in schools or better. the reforms are working. >> one of the points they've seen me make is that you very cute this publicly that the reforms will be better for public employees, will be better for teachers. they've been in politics a long time to know that it's very difficult to convince somebody that you know their best interests better than they do themselves. so you make these arguments to teachers and you have some good examples, but they are still opposed to it. how do you breakthrough that? had he convinced them it actually is your best interest? >> again you keep pushing it over and over again. i got a reading initiative just to announce the details of their superintendent public instruction, but i like to read a elementary schools and meet with teachers afterwards. you can imagine a wide spectrum of people who hate and people who are open-minded and somewhere in between. i pointed out that if you look

at other states around the country, where they didn't do the forms we can accommodate to cut back on aids to schools and higher education and not force laos. so other places there's a lot less public employees and teachers were. we were able to avoid that. the handful of playoffs are in the districts are ranter contracts before reforms went into effect. in total there's about 1200 more that patterson is wisconsin and layoffs overall statewide. like i said, layoffs themselves are concentrated in districts that can take advantage and instead put contracts through. on turn one of the great things in august about a month out those teachers in their state come back and they're getting classroom study. it is amazing how many teachers would come out and say i'm really excited about what he did because i went back to school in a ruinous here because they want to be here. they're pumped up comment do's. convert directly with my

principal. i'd have to worry about grievances and other issues. i can talk to her superintendent and principal and others out there. i just think there's a whole mother dynamic in place. long-term will reward the best and brightest and be able to keep those great teachers in the classroom and were ultimately going to be able to have a system set up not only save a only save a bit in each of the rewards not only let dollars, but another raise the confidence do they have an excellent c. they provide for students. the biggest winner in matters tuning because students will win because most people i know, my wife and i and our close friends or elementary school teachers. the people i've known, including the kids to teach my kids went into teaching for other great reasons. they want to inspire kids, help them. most say thanks to want to do that. but along the way, somebody got tied up in the bureaucracy of not only the union collective bargaining, that education

itself and what we did also be allowed us to breakthrough that it empowers teacher to do what they got in the profession for the first place. >> one of the things that's a little frustrating but have wisconsin stories per trade if it's portrayed as your administration on the one hand and the unions on the other. but their other stakeholders stakeholders involved in interest parties. you mention that there's an positive feedback from bond rating agencies. but it's been feedback from other stakeholders in the business community? >> welcome a look at our reforms with collective bargaining as well as with the other things we did. we passed tax relief, nature tort reform, regulatory reform, repeal the estate tax agency and adult things to create a better business. in 2010 the last of my predecessor was in office come to see the statewide chamber does a survey to estimate players that may say whether today that wisconsin was heading

the right direction or not. 2010, 10% of our employers were sent to the right direction. a couple weeks ago they did the survey came in wisconsin. the number is now 94%. the majority of employers say they're going to hire more players. now, we understand confidence and certainty in the marketplace and ultimately job creation, so we need to do more of that. the three years we lost 150,000 jobs in the dirt. in the first 11 months of last year, numbers flagged by a month and we can just over 16,000 net new jobs in a private set to appear it was subtle way to go when there's a lot more but to do in in the future. that's a tremendous turnaround from heaven not the hundred 50,000 jobs in the past insert only turnaround in terms of the dealing not only within the state, but even nationally. msnbc, ford, survival index come even chief executive magazine

annually puts a ranking from one to 50. two years occur where a 43 come a year ago we ranked 41 after taking office about six months and tell her form started taking effect. we went from 41 at 224. a jump of 17 spots, fastest increase in the country because people realized that only have we created a better business climate, but when you tackle structural problems and fiscal problems that were the band-aids , but she makes structural reforms that both the state and local level, you make it better stay to invest in. not just for big investors, the small business owners. thinking about adding the five or six or seven more employees who are worried that the future may hold. everything you can do to provide more certainty and stability makes it easier and i think in the coming year, 2012 comments a tremendous job growth in wisconsin because of that stability. >> and or, do you see that when you look at different states?

what are the effect when states have pursued reforms as opposed to those who haven't? >> well, one of the interesting things is the states and laboratories of democracy we have a lot of different things happening in states across the country. it's interesting to see how things are playing now. you have in california governor brown has hardly seen as a conservative has proposed to significant changes to the pension system for public employees bayard instead of having an traditional pension to have a mix of social security for a smaller td plan. even in new york ran from, governor cuomo has been proposing changes. it's interesting to see how this played out. illinois is in pretty dire straits is really having trouble getting on top of this. i think the real advantage is doing it. 1.8 added in terms of the changes to compensation is the

economist or theoretical standpoint on this. the test of whether these cuts were too large for the increased contribution is to pensions or health care were too big for the workers and state employees are quitting her of her unable to hire people as the state or local governor still able to reattach and retrain employees? >> particularly in a tough economy, with 7.3% unemployment down from 7.6% a year ago, certainly better than 10% in illinois and better than the national average. i think it was a large part driven by some scare type except the public employee unions to try to claim we were going to take and if it's away. i still get that today. i get questions all the time that people think particularly pensions. we are not. for making a payroll match to match that. but it is interesting, not only the employment site, illinois a

great example because other states and why a man under tremendous pressure is because it is not just republican circus there it is. he mentioned cuomo in new york. you think about paul patrick signing legislation in massachusetts, largely driven by the legislature there, but that was the broken reform for local governments. you think about rahm emanuel and muddy sewage of the city of chicago tackling those challenges. who would have thought when occupied chicago protesters would mention my name in the press, but that is largely because once you're an executive position if you are honest and look at the facts, for a republican or democrat or conservative standpoint, savings or may choose different ways. i take to save money and put it back in the hands of entrepreneurs who feel the economy through entrepreneurial spirit. liberals may want to put it in the hands of more government

spending. but either case is increasingly come at least a month executives , understanding it or have the option either way if you don't tackle the virus, which is like a speaker and out of control. illinois is a prime example is satisfies in california to a certain extent. but illinois has a pension system that's only about half done. they have a bond trading above their fiscal agents this year talked essentially advised bond buyers not to buy their bonds and raised the question, what is the bottom with the bond ratings out there. and mention that with chief executive magazine. we went up 17 spots not. illinois the last tigers failed to tackle this challenge has dropped five years, 45. "the wall street journal" editorial earlier this year or early last year cause a death spiral. if it wasn't for chicago being one of the 12 or 13 megacities

at the world, the failure to act on things in springfield would be devastating. for other tax increases this year and in wisconsin saying they didn't do we get coming out there about carving out companies like sears and caterpillar in others because those companies threaten to leave because excessively high tax burdens and failure to take on burdens. they push more of that up to taxpayers in the state. to me, tackling their foreign comic even though it's brought -- i didn't seek national attention. i just look at the second small business owner. the site problem and solution on local government and what to fix it. in retrospect it would've been nice to spend more time talking about details in january and february, building a better foundation. i talked about the tens of millions of dollars wasted by school districts not been able to bid out health insurance for the excesses, not successes in

overtime for state and local governments have. i'm talking about that now. from my standpoint i said hey, i was allowed to fix that. i spent 18 months in a job interview talking about the fiscal and economic challenges may state is. once i got alike did, which is essentially hired i said i'm not going away. you've got to tackle it right away. so we may be one of the first, certainly not one of the last certainly not republicans doing that. a lot of democratic executives who recognize if your office with the public he got it fixed it. >> i want to talk about the recall and then it, but i want to mention one thing that struck me in doing some reading before this event. you're presented sometimes says rick in the union, union buster, but one question that is interesting to a lot of people is this question how to think

about: the bargaining. i want to read you a couple quotes i came across. here is one. meticulous attention should be paid to relations of public service to the public itself into the government, the process of collective bargaining is usually understood and cannot be transplanted into public service. i was surprised that was franklin roosevelt in 1937, hardly an antiunion guy. how should the fair-minded citizen to give up what to bargaining? collective bargaining rights take right away, which most fair-minded people say there's something wrong with that. he can't take somebody's rights away. how should the average citizen and about collective bargaining? >> some of the national union support millions of dollars in february march feistier collection is successful. collective bargaining in the public sector is it right. it's a sense of entitlement.

the reality is non-ascii art in the court yet pointed out, last february that president when i was in madison because i didn't figure he could safely travel to come and do their job, so i stayed put, the chris christie called me because annual luncheon the president has with all the governors, the president took a shot at by saying we were with public employees. so i could have consulted with people may say they got asked about that. i remember i was drawn in the public service by president reagan signed on at the office even if i don't agree with the first amendment. i am sure the president of the united states knows the federal employees don't have wages and benefits. the president of the united states knows that on average is 20% of health care premiums, about double what i am not

getting because i'm sure the president of the united states is not good at talking points from the national union leaders. the reality is that's what it was. it was a political push to train green beret, which is not inherently fair. i mean, the difference between the public and are is there is no one standing on on behalf of the taxpayers. you ultimately have a cycle that put the taxpayers at a disadvantage. so what we did is say the tax year should be paramount. i respect the hard working people at the local jurisdictions as well. if they elect people on the county boards and city councils and state office is, those individuals should be able to make those decisions. it's quite unlike the dirt where there is a union and an arrangement, there's ability to union can strike. the employer can move at all sorts of options that you don't

have in the private air. from the union standpoint, the private sector union is parsed in wisconsin are my partners and economic development. they've been great allies for us. you look at the rate my predecessor put on the transportation fund, we restore that. people like operating engineers and they say about overdoing because their people are back to work again. we stop shifting funds. reduce funds for what they were meant to be for. so people overcome the private sector largely benefit. the other interesting thing which is the side of that, this mantra not only better right,, but the middle class. let's be clear, who pays for the expansive government? who historically in this country and state-by-state pays for the excessive expansive government? it is fundamentally the middle-class taxpayers and our states and in. but we did is fundamentally about standing up amherst

tackiness middle-class taxpayers in pain once and for all three are going to let you be the ones we think about first and adabas and union leader in washington and then he later in that and, but instead we will make decisions that ultimately protect them.

not only help us balance the budget and to the long-term, the other benefit, an iodd job in this indian is ndia wicked to reward excellence. t we get to empower good employeee to make better decisions. that's ultimately good for the public and just as all the to in the private sector one of the things we're interested in is the extent to which what's going on in wisconsin, the reforms may be a model for other states. one of the things that's extraordinary of but wisconsin's history is that maybe more than any other state has a tradition of being ahead of the curve in all sorts of reforms, be they progressive or conservative. you have the whole wisconsin

idea, folks like bob, but then reform is like tommy thompson and welfare, paul ryan obviously your friend. from this process, how come you mentioned you talked to chris christie and mitch daniels, people like that, what you learn from the battle and also the successes you have had, how applicable is this to other states and the situations they're facing as you talk to other governors? >> first on the history, a year ago on january 3 part of the oath of office, i did it ini din front of the state constitution. the reason i did it was becausee i wanted to invoke a part of thv constitution that there've been altered altered, never amended,e talks aboutd. spending, talks ta about how moderation, frugality leads to freedom and prosperity for our people. people. that came for more than 163 years ago. over our time in our state and i think it's a similar tradition

to our founders more than 200 years ago in this country was at their sense of a limited government, certainly a government that put the power back in the hands of the state but in turn the states ultimately in the hands of the people was about a limited government, one that excels in certain areas, but one that shouldn't be expansive so our tradition, you know, we have had like a lot of midwestern states we have had folks who advance the cause on the left in the right and everywhere in between. certainly more play. tommy thompson with welfare reform and school choice and other reforms like that. in our regard we didn't look to do this and i didn't set out in my mind to say i want to -- i just said fix the problem and make your stay great again. but i think other states did that. we took a page out of what mitch daniels did in 2005 in indiana when he to an executive order, a lot easier than a statutory change but an executive order was able to change collective

bargaining and turn his state more efficient and more effective taxpayers. i think that is paid off over time are going to do what other governors did that i think others can agree. chris was out talking about this but it was really this year to his credit with the legislature that was controlled by democrats, he was able to convince enough folks of both parties that this had to be done. i think other states can and should do that because if they don't, again whether you are liberal or conservative, there's going to be less and less resources either to get back to the people from whence he came or to spend on their programs out there. i think it can be done elsewhere. >> i think that is precisely why you are going to see the tens of millions of dollars coming in from outside of the state into wisconsin, because there are some interest here in washington that don't want this to happen. and they don't want to happen in

republican areas but whether it is lincoln chaffee up in rhode island or some of the other states we mentioned or others down the way, they want people to think twice about that because they want people to think there will be retributions if they consider those changes. i think they are impaired or. i think what happens now or if you do years down the road it's going to happen. >> that tease us up nicely. we are going to have quite -- open up questions the audience but i wanted to ask about the recall and what is going on and i that i think our audience would like to know how this this got off the ground and breaking standard where you see it going and just your take on it generally. >> it started officially on november 15 although state democrats and the union supporting them talk about it before then. november 15 they kicked off the recall efforts. they have 60 days by wisconsin law to collect 540,208 signatures. for a while, they were talking about collecting 1 million. i don't know if they will get to that but i assume they will get

well into the 540,000. our state, that is equivalent to 25% of the votes cast for governor in november 2010. i say equivalent because you don't have to be a voter to sign the recall petition. all you have to be is eligible to vote, which means 18 years of age or older, not a felon, on paper and lived in the state for at least 28 days. so it's not an extremely high standard but it is what it is. and, the burden to ensure that people have only signed at once and they are legal residents although not in the state but in the incumbents campaign to challenge so we will look through those and obviously if there are excessive examples of multiple signatures and things of that nature we will challenge that. in the end i will imagine they will probably get that. in all likelihood after they do they will probably force an election sometime i would imagine now and june, early in june.

unlike some states where it is up and down with the incumbent this forces a new election so the minute a people under the law can ultimately force a new election. from oaks folks in our state even those that aren't particularly political one way or the other, most folks are tired of all of the elections. collectively there were more than $40 million spent by all groups and candidates in the summer on the state senate recall elections. put that in perspective, i spent $13 million running for governor over 18 months. they spent more than $40 million in the summer on the senate recall elections. i think those people are just tired of all the attack ads. our ad started november 15 and we were involved in positive testimonials from people, teachers and school board members talking about how the reforms are working for them and their families and communities and we will continue down that path. people asked me who my opponent is going to be. the person doesn't matter. it will be the big government

union bosses in washington who will pour limitless amounts of money into our stadium will try and influence our vote and we are going to have to be ready to get the truth out encounter that. also i think elections are about the future and not just about the past. do we want to go back to the days of record job losses, double-digit tax increases in huge deficits or do we want to move our state forward? i think we have taken our state forward and i think we can move aggressively forward even more so together in our state but we have to get past these recalls. >> if i could ask, are there any reforms on public employee compensation passed in ohio last year? i know they were repealed or a referendum. are there any lessons you take from the failure of the reforms in ohio? do you think that you avoided through the way you went about things --

>> did biggest fundamental difference between ohio and wisconsin and as much as we have a weird quirk with the recall law we have a weird quirk with the recall. ohio's case once they got enough signatures to get f5 on the ballot in the render and questioned and deal law in ohio says it no longer goes into effect so in ohio's case the voters never got to see the benefits of those reforms. if i had a vote last march, i think it would be much more difficult to win because all people would have heard was the scare stories and the attacks and data nothing to counter that with. in my case i mentioned earlier those two benchmarks, september 1 in the second week of december. those two things alone are a tremendous counter to any attack ads running against me because people say hey the kids went back to school and my school is in good shape in my school had a teacher. that sounds pretty good and they say i got my property tax bill and i'm in pretty good shape.

one of my biggest hits on twitter and facebook for the past few weeks have been people responding to me asking how many of the site are property taxes go down or stay the same but people responded to that. so i think the biggest challenge that kasich another said there was all people heard for the negatives and were outspent by 10 to one or 11 to one or something like that. i think we can win as long as we have enough to get our message out. >> one more question before we open it up to the audience. if i may reform minded governor and i said scott did a great job at pierces big backlash in the recall. is there anything after you going through this he would do differently? i know you would push for the reform because -- structural reforms would what if you

learned in how this has unfolded? >> clearly we laid the groundwork earlier in january to every every and i mean that not just me speaking about. think we would have run an aggressive ad campaign because that is the biggest mistake i made. iges uses as a fix it. you are elected to fix things, going to. the. i had no idea of the national mind that would attack us early on and distort the facts of the truth. again i said before but if people had known how many tens of millions of dollars and school districts wasted in the past by being forced to buy their health insurance from a sole provider without being vetted outcome if they saw the millions of dollars wasted on the abuses of overtime, if they had seen examples of local officials like myself before i was governor across the state who are trying to do innovative things, not just to balance the budget to make our governor work better but if they heard those stories, for a lot of people who weren't involved in local

government prior to this all coming up, a lot of people came out of the blue. one of the retained -- routine things i hear from people i think it's a legitimate critique, they say you know what? umar look at it to make sense and i'm glad the way to sort out but i'm still frustrated because i think you could've done a better job explaining it up front. >> i'd don't shy away from that. i say in retrospect, hindsight is 2020 but if i could change it, or any other governor for he or she i would say you know, have an effective communication plan. build your case early. break it out early and upfront. made the case for why reform is needed and then not just do it but then repeated. once we got engaged, we got -- authentications but you have to find ways to talk directly to your constituents. not just her press conferences. we have town hall meetings and brownbag lines -- lunches and things like that. we criss-crossed the state. is also very engaging.

for all the talk you see the national media and all the attacks in this and that of the protesters, for every protester i get there are five or six people that will come up to you when you hold a listening session or you were touring a factory. they will come up and slip you a note and tell you to persevere and people will give you the thumbs up. there are people who aren't holding a sign up and don't have enough time left on their vacation scheduled to take off of work for couple weeks at a time but there are fashion at -- passionate. they are just not angry about it and so they do that as well. that's everything i would tell governors, fewer going to do it don't go halfway. people say could you have done this? in the end i knew from being a local elected official for all those years, if we had gone halfway, we would have fixed the problem for year or two and it would have only gotten bigger a couple years down the road. to me that would have been completely unacceptable and i've

got to tell you i don't plan on losing but i'm not afraid of losing because in the end if you do something for the right reasons, those things, i was in this town paul ryan and i love to point out there are two kinds of people. they're not liberal or conservative. there are people who get elected either to do something great or be somebody gray. iris kids if you try to -- be the latter. that is what we tried to do. we tried to fix a a problem and a way that made sure that we weren't just fixing it with a band-aid. we were fixing it so that the next generation, not to get too nostalgic here but i remember back in september i was at the governors association conference and i got up real early and ran over to constitution hall. constitution hall is as big as this room right now and i remember, i love history and as a kid i used to think of our finders finder's -- founders of

superheroes. a hall like that, you look at the chair in the back and there's a rising sun and if you look at those chairs, these were ordinary people who just did something extraordinary. and as much as it took political courage in their case it took more than now. was her franklin is said if we don't hang together we will hang separately? they were risking their lives. not just their political lives but their lives but get for 200 years what has made our country great, whether it was economic, fiscal or spiritual or whatever has been that we have had leaders men and women of courage in this country who in those moments were willing to stand up and think more about their children and their grandchildren than they thought about their political futures. that is really not just wisconsin but across the country, state-by-state. i hope it's as we have these ongoing discussion several he more people willing to think about the next generation more than they do about the next

election. >> we want to open it up to folks in the audience for questions. just a couple of ground rules. we have microphones that will be going around so please wait for the microphone. identify yourselves and please make or question the form of a question. we would appreciate that. >> max rosenthal from the hub and impose. he spoke about the national money they came that came in over the recall process. you have been critical of unions and money sources coming from out of state but obviously you receive a fund-raiser today in a significant chunk of your money come almost have it comes from sources outside of wisconsin. why are you comfortable with taking out-of-state money and not what it comes to their side and are you concerned about how it is going to play in the upcoming. >> the people from around the country who are helping us at the grassroots level are trying to match the amazing levels of money coming from the unions and

washington and throughout the country so they think is a legitimate question. for me i wouldn't be raising a penny right now if it weren't for these recalls that occurred largely by the national unions. just so it's clear you're right and terms of total of hours but in terms of all my contributions in this last report we had nearly $47,000. 79% of the donors were people getting $50 or less so money coming in from outside of wisconsin in many cases is coming from people giving us 10, 15, $20 saying we want to help you counter the money coming from washington. a legitimate question but we are just countering the excessive amounts coming in from outside of wisconsin. >> hi governor walker. andrew ackerman with dow jones.

are the private sector's jobs each month since june including two of 12,000 november, disaster just may be your -- or not working especially when the rest of the countries adding jobs? pinellas pinellas survey i just mentioned where we went to 94% in wisconsin is headed in the right direction, in that same release one of the things i talked about when they ask a random question to open and question about feelings people had about the future one of the things that group in the chamber identified was the concern and in place had about recalls. they write -- like the reforms that they were concerned somehow that might stop and somehow -- so i think the sooner we get back to that the groundwork has been played and we saw the net increase in jobs at the beginning of 2011 but anything that adds uncertainty it will continue to be a factor for us. >> just one other quick question. when you're talking about fairness to taxpayers,

concerning reforms, one of the things i have never quite understood is why emergency responders works glued it from the pension reforms yet they have the most expensive pensions. >> great question that's one of the things in ohio where they did include, was politically was one of the reasons the referendum went down. it was simply, i had in january and february be looked at this, the budget and what our options were. we want to make sure we didn't do this in a vacuum and we had a strategic plan should there be work shortages or walk offs anywhere the state or federal level. so we had plans that could cover my correctional facilities in the state, my mental health facilities and 24/7 type operations but in wisconsin i have 1700 municipalities and 72 counties and my concern was i did have a way to cover all of

those jurisdiction should there be a work shortage amongst fire or police officers in the state of wisconsin. they're professionals and i would imagine the vast majority would consider a work -- but if one jurisdiction did that in someone's life is at risk because of that, i thought i had a higher responsibility to do that. people say, how can he do that? the teachers in the madison school district walked off the job for three days and left parents out in the cold. that didn't cause anyone's life to be at risk but made a lot of parents upset he didn't have provisions for childcare and after a couple of days teachers went back because the parents were acting very negatively politically to that frustration. in that case it was an inconvenience. in the case of public safety, the fact that someone's life could be endangered was too high for risk so that is why we did it. it's a simple practical consideration but a very legitimate question.

>> tom curry with nbc politics.com. governor you said earlier that in the coming year you expect tremendous job growth in wisconsin. if good times and prosperity returned to this day, what is the likelihood that the legislature or perhaps the future governor, what is the likelihood of reforms that you have enacted in collective bargaining will be rescinded because after all it was the session that created the situation you face when you came into office. >> remember we didn't do this just -- the reasoning was we had to balance a budget and those five choices i became at the beginning were the best of all the other options and other states and governors have picked. but if we were to resend that we have added deficit at the local governance. conservative or liberal and like like you would be hard-pressed

to find many local officials who would he out there even right now arguing to resend the collective bargaining. why? because they benefit from those. the gentleman who ran for me for governor balances budget on my reforms. if that isn't -- doesn't make a case i don't know what does. so long-term, while i think some in the recall movement to make the false pretense or present this as a choice between yes or no on these issues, the reality is if somebody is going to campaign, nobody ran for common in the people ran in the recall election as state senators ran on a platform of repealing collective bargaining. a couple of races they actually ran on medicare. which you all know has nothing to do with the state and has everything to do with the federal government. they round on anything but that issue so it's clear to me that people like the reforms. whether they like the process is

more debatable but local governments certainly like it in the public has benefited from it and if someone were to run in the argument that they could repeal it i think politically that is a pretty negative outcome because people think about it. that means you have this huge budget hole and you have got a structural hole in the local governance as well that would have to be filled either by having massive layoffs, cutting things like medicaid or raising taxes and that would be crippling the state's economy. >> governor, josh calling with a pr. on your inauguration day before you were sworn and there were unions organizing at the swearing in talking about a recall before you had signed a bill or evening governor. how much of this recall is about

public policy and how much of it is just a forgone political conclusion? >> taking a step back, the recall web sites was registered november 2, 2010. they didn't come up with it until february but you don't register a domain on november 2 because you know, remember on the tonight show they had johnny carson and the guy that would hold the envelope up to his head. it wasn't because somebody knew in advance that this was going to happen. i think a lot of these left to center groups were looking for an opportunity, the unions in particular jumped at this chance. i find it interesting because if you fundamentally take the case, why are they going on a recall against paul patrick, the speaker of the legislature in massachusetts or doing similar things in other states? well, it's because there is a political alliance there and i

remember think it was the "boston globe" errata column months ago where they looked at some documents connected to the white house were they told folks in massachusetts to quiet it down a little bit so they get more aggressively go after me and kasich and not make the public realized this wasn't just a republican issue. a lot of elected officials are looking at this so i think it's about power. i think it's unfortunate for the people in my state because people my state are going to probably have to go through tens of millions of dollars more worth of negative ads largely funded by groups from outside of our state. i am going to seemingly silly -- seemingly endless -- a swing state that has two key house seats up up and opened u.s. and so my voters in wisconsin won't get much every reprieve after the recall elections. i think most people in state matter where they stand politically are actually tired of it that we have a handful of people, it's ultimately about

power. they don't like the fact that we gave public workers of the state a choice. for schoolteacher in milwaukee who pays almost $1400 when their contract is up, he or she said the choice whether they want the $1400 roughly to go to union dues or whether they want to keep that for their family or health insurance premiums or whatever they might want to use it for and that is really what is at stake. to give them a choice, there's a fear that those public employees will choose to keep that money and that is ultimately what this is about. it is about as clear of the contrast as you can get. it will be someone hand-picked by the union and they will want someone to go back to what we had in the past, someone who will go down the same path that i believe illinois going backwards on where they will have record job losses as we had in the past, massive deficits and double-digit tax increases which we saw a few years ago or we can go forward with a much more optimistic approach that we

will expand on in the future. >> governor sean paul with "national journal." i want to ask you about your read of the mood of the electorate and what was on the 2011 recalls, credibly divided electorate irked almost nobody was in the middle and there was no opinion. they were with you all the way are really against you. do you see a similar divide if there is a recall election triggered this year, and secondly, you have spoken about the effect of negative ads on the mood of voters in wisconsin. are you willing to say that if and when a recall is triggered that your campaign will not need running any negative ads against a potential democratic opponent? >> two parts to that. to put this in context, not only in wisconsin but other states. in 2,002,004 wisconsin was the closest blue state in america so there's nothing to that happened

to happen unless it is suddenly made wisconsin have different political views in different parts of the state. that's our tradition. we have had great debates for generations. anybody who comes and looks at the state before 2011 would say milwaukee and madison are overwhelmingly democratic and the suburbs of milwaukee or republican. the rest of the status of pasta. that is why normally includes competitive races weather was ron johnson or others are others out there, was kind of a 40/40/20 split. about 20% that is kind of up for grabs in the middle. that number shrank a little bit as there has been so much debate and discussion. i think, we really haven't been a concentrated campaign giving our side of the story throughout all this those debates so i'm optimistic that the more the facts get out the more people hear the truth and the more they

see the benefits of the local governance not only financially but long-term, i think you will see a shift but i don't think it is going to be a tremendous shift but i think you will see a shift in our direction. i think there will be battles just like in 2012 in the u.s. senate race in presidential race in our state. it will be a close competitive race because wisconsin like a lot of other midwestern states are evenly balanced. in terms of the ads, we have run positive ads up until now. i can tell you we will run ads to find the differences. we are not going to take cheap shots. i think people don't want that but i also think people want to know what the difference is. if i point out my record versus whomever, the union decides to run against me will clearly define the difference. i don't do that as a negative. i think it's a legitimate comparison the voters want but that would be our expectations. we will talk about our vision for the future and talk about how that contrasts with who the unions into putting their money

behind. there are a number of private-sector unions that have endorsed in the past and have not been involved in these recall efforts. >> tom buell with state tax magazine. allotted of this is about the legislation put in place but some democrats have been critical of tax breaks for corporations that spurred the economy and tap -- capital gains tax cuts. i was wondering first off what is your sponsor that? do you think that will be an issue in the recall election and if it might spread into tax issues and other parts of the economy and since the senate is so close i could possibly shift towards democrats depending on how these races go how do you think your administration will fare with his policies if the democrats regain control of the senate in the future? >> a couple of good questions there. on the text part, i think all

the elections more or less are about the future not just about the past so there'll be some discussion but if you look at the earned income tax credit, not as much money is going to offset people don't who don't pay taxes and give them, other taxpayers money. that is just a matter of how much of a subsidy is out there and on the other side, on the tax reductions, they were all tied into jobs. in fact these are the things we proposed. all the bills that i've signed into law, more than 90% of them have had bipartisan votes. out of all the legislation i passed in the past year, more than 90% of them have had those from republicans and democrats. including some of the tax. why? because we didn't give blanket tax cuts. are tax cuts are tied into job

creation. you create more jobs in wisconsin, and send us whether small business or any other size business out there, the ultimately capital gains we exempted all capital gains, 100% exemption for investments made in wisconsin-based companies. why? i want people to take their's and sand dumped them into companies that are in wisconsin that will create more jobs. i was elected to fix the economic and fiscal crisis in the state and those were things that we believed over time would have a tremendous impact in putting people to work. to the biggest things we have had so far were direct credits, tracks tax relief for agricultural-based industries in our state. those are the two largest industries manufacturing and agriculture. those are things that row over time and our tremendous incentive so anybody watching who is in agriculture should come to wisconsin because you'll have one of the best tax burdens in the country and it will only get better over time because the

tax bills into this budget. we didn't give it out to corporations and we didn't give it out to individuals. we targeted areas that would have a direct impact on economic growth and prosperity and i think that's part of the debate. someone wants to run against lien say they are to make it harder for manufacturers and others to create jobs in our state, that's a debate i would love to have because i think people understand that for the small businesses and others in our state that create jobs we need every ability to create more jobs and move in that direction. you had one other part of your question. >> yes, the recall elections and the putting -- in the senate back into democratic control. how do you see that affecting the fiscal policy debate? >> again like i said more than 90% of the bills passed passed with bipartisan support that i signed into law. i still think somehow, i think

republicans will retain the majority but it will flip a 17-16. i think there there is enough discerning democrats including a number of whom voted for almost all of our major jobs initiatives that will continue to work with us on the state issues. i would imagine even coming up in the next month or two, we have got some issues to further create incentives for venture capital investment in our state, to look at reasonable opportunities in our state. i've talked to a number of democratic senators who want to vote for those measures as well as republicans. those are things that as long as we can get done no matter what the layout is of the legislature i think it's better for us long-term if the majority continues but if not, either way. >> my name is jane norman. i'm a reporter for congressional

quarterly and i want to ask you about the health care law which is a major issue for your state in terms of budget policy. i understand you recently said that you were going to put off implementation of the state exchanges until after the supreme court case is resolved on whether not the law is constitutional. i'm curious about your thinking on that and if if you are concerned the state is going to have problems catching up if the law is found constitutional? secondly i wondered if you plan to return any of the money for the health longbow mentation? >> well, on the first day i took office, january 3 i authorized our attorney general join the federal lawsuit. i just wanted the federal government should not ever rolled. does not clearly have a role defined by the constitution and in health care mandated not only by the state but also i don't particularly care -- i think

that is the decision that individual families and employers should be make you not dictated by the government in and of itself but i predict or you believe in reading the 10th amendment that is the right inherently in the hands of not only the state but of the people and so i think we have a very good convincing case in that argument. the supreme court is going to take an unprecedented mount of oral arguments in that regard. i think for any state, the move forward on that without knowing what the impact will be, probably sometime by midyear is particularly in in the state involved in a lawsuit is a poor decision and no i don't think long-term, i think certainly i oppose the mandate. with testified before that the president's mandate in wisconsin's case cause the majority people to pay more for less health care. in our state, that is a negative for the vast majority of people

in our state. we are the one of the highest percentage of states that cover people with insurance. 96% of our people are covered so for us to fix -- to 4% to throw upside down the current health care system even though it needs some improvements, seems like a poor decision for the vast majority people in our state. we would prefer better alternatives to that with federal health care mainly. so for us we are going to push both legally and politically any and all apprentice to that and it doesn't make any sense now. in the end after exhausting all legal and all political alternatives, we will re-examine that. but until that time, we are still holding out hope that power can rest in the hands of people and not the federal mandate. in terms of funding that the state has acquired under my predecessor, it is not in our hands to begin with. we are just not drawing any of that money down.

>> thanks audrey of in her. eric lawson from "the hill" newspaper for your. i was wondering what you are seeing as far as the enthusiasm for fiscal reform nationally. there seems to be a narrative emerging here that the tea party for example may end up having. do you see it a more difficult to push through reforms and you think your you're bold move has played a role at all in the backlash that we may be seeing? >> on the latter part i don't know and i will leave it back to the pundits to decide but i do think, and is not a popular discussion to have ongoing. people like to move bond, both the media and the public in general likes to move on from one hot topic to the next. anyone who looks at what happened in august when our bond rating was dropped, all those governors and executives at the local level, we know how incredibly important it is to guard our bond rating and what that means not just to bond

investors but investors in general. what is says about stability in our governments government so that for the federal government to have that dropped i think is a really, it's a warning sign we should not take lightly. we have a limited amount of time to deal with that. whether or not that is continued or not, anybody who looks at that, i go back to thinking not so much because it's a hot topic of the day that when i think about my sons nat and alex in a couple of years heading to college and a couple years after that getting into the workforce it scares the dickens out of me that they will come into a world where state-by-state and particularly in this country, we are not just generations or even a decade away. we are years away or manager crisis, and you know we need to look across the ocean to greece and increasingly others to see except what happens when you don't tackle this tough issues.

it may not be a fun topic to talk about but long-term -- a lot of times in politics like -- people like to shy away from these issues and understandably but as long as you are constant it you don't -- one of the lessons i used to give lawmakers when i was in office and i would mention the numbers, never personalize your differences. your opponent made be your ally tomorrow. as long as we don't personalize the disagreements on this but really keep repeatedly over and over and over again talking about these great fiscal challenges we face at the state level and similarly if the federal level i think we have no choice but to do that no matter -- no matter whether it's at the top of people's list or not. it should unit will be in a few years. >> time for one more question. >> heiko on her. i am at work but right from the comments. i'm just wondering about the element of the reforms that

capped base pay increases. it strikes me that you know, that is an element that isn't mimicking the private sector. it would be dispiriting to know that your salary would never increase in real terms ever by law and that seems to me to be the effect of that. can you just talk about the logic behind that? >> basically as a group, a group that previously was in a collective bargaining unit couldn't automatically have a whole days salary for that entire group go up as a wage beyond the cpi. but, state government, local government in the past week or two have given out on this is for example. they can put in performance incentives and do all sorts of things that the private sector doesn't do. they can build and to that but the idea being we want to empower local governments to make those decisions to tie into performance, not just providing

away without regard to merit or reforms. >> you would have to be, right? >> as the economy improves that can go up, but it will allow distinction between those who hit performance benchmarks and those who do not. that may be one of the issues that we come back and examine. that was one of those we debated and whether we change that entirely or not and that which is one of those remnants left that would have some rolled over time we may find the will change all that and have a wide-open debate as -- about sellers as well. said let's get to the final question i want to ask you please at elections are about the future. are there other reforms that you are hoping to pursue this year? obviously you're going to be very busy for the first half of

the year with some political fights you have an anticipated or you have done what you wanted to do to get the structural reforms. >> on the structural financial side part of it is the implementation. one of the things i stress to my cabinet cabinet and the reference before is now its, we have been given these tools and it's our charge to make sure the areas we are logically to be involved and we will do well. a number of our agencies have been taking on principles like manufacture and techniques that haven't been used. amazingly many of our -- haven't had real training of madison -- managers for years if at all. anyone running a business knows that not just your top topic your whole management structure has got to have measurements and guidelines. we like to say you can't measure if you can't manage so we have tried to become much more effective. while we don't have a profit

margin, we do have a performance measure, so those aren't legislative reforms would reforms we are going going to do internally. the other part is for us to grow our biggest challenge is in fact in many cases we have employers particularly in manufacturing that have jobs available now. we have a 7.3% unemployment rate yet i have a web site in one of my state agencies that has more than 30,000 job vacancies right now. and in many cases particularly in manufacturing, they don't have enough people with the skill sets they need to fill those job openings. part of what we are going to do is put a greater emphasis on helping the private sector partner with the public sector to find more skilled job positions and education reform. yesterday we came up with a major initiative that we did with the state superintendent of

public instruction. a position traditionally elected with the help of the teachers union. 3% i have our differences and some issues but on this we are jointly together and the other big one is we may end up, and we will see how it works out, may end up been part of a national discussion in wisconsin's cases we are looking at an alternative to no child left behind that we have been spending months together on with various different interests of school and school district accountability where we would have a much more confident way of measuring the success of our individual schools and our districts and then provide that information not only to educators but ultimately to parent, community business leaders and others. we think we can do it better than the federal mandate on no child left behind so that is another major reform press. we think it's imperative not just for our schools and parents world smiley for our employers to know that the skill set we are providing in our k-12 system

are matching the job openings we have in the state of wisconsin. >> that is all we have time for. want to thank you opera, today [inaudible conversations] [inaudible conversations]

[inaudible conversations] >> today on c-span2 florida governor rick scott gives a state of the state address. he's expected to talk about his jobs creation package, education and auto insurance costs in that state. that's live at 11 a.m. eastern here on c-span2. also today on c-span2, the

center for strategic and international studies hosts a discussion on the future of the internet. that's live at 3:30 p.m. eastern. finish -- >> if we begin now to match our policies with our ideals, then i believe it is yet possible that we will come to admire this country not simply because we were born here, but because of the kind of great and good land that you and i want it to be and that together we have made it. [cheers and applause] that is my hope, that is my reason for seeking the presidency of the united states. [applause] >> as candidates campaign for president this year, we look back at 14 men who ran for the office and lost. go to our web site, c-span.org/the contenders, to see video of the contenders who had a lasting impact on american politics. >> the leadership of this nation has a clear and immediate challenge to go to work effectively and go to work

immediately to restore proper respect for law and order in this land and not just prior to election day either. >> these young people when they get out of this wonderful university will have difficulty finding a job. we've got to clean this mess up, leave this country in good shape and pass on the american dream to them. >> go to our web site, c-span.org/the contenders. >> you're watching c-span2 with politics and public affairs. weekdays featuring live coverage of the u.s. senate. on week nights watch key public policy events and every weekend the latest nonfiction authors and books on booktv. you can see past programs and get our schedules at our web site, and you can join in the conversation on social media sites. >> now, arizona's governor, jan brewer's state of the state address. she talks about her priorities

for the coming year which include job growth, border protection, education and the economy. this is about 35 minutes. >> the joint committee of the -- [inaudible] her excellency, governor of the state of arizona. >> members, would you -- [applause] [cheers and applause] [applause]

[applause]  >> thank you. good afternoon. mr. speaker -- [inaudible] of the centennial legislature --

[inaudible] constitutional officers, tribal leaders and honored guests and my fellow arizonans,. [inaudible] but i love arizona. [applause] it's my home, and it's our home, and it's an extraordinary place. after a long, hard day i look forward to walking in my garden, to rest and to relax, enjoy the wildlife, watch the sunset and plan for the challenges ahead. yes, even including preparing for this state address. but it's impossible -- [inaudible] and not recall that terrible day a year ago, a day that now is part of our history.

the day evil came on a sunny morning in tucson. we knew saturday, january 8th, 2011, would be a mark on our memory, fixed forever. we knew that time could not wash it away, so we remember. and in that reflection today the tears belong to arizona. i know countless prayers have been offered this past year and continue to be offered for those that we lost. judge john roll, dot morris, phyllis schneck, dorwin stoddard, gabe zimmerman and christina taylor green.

though the completeness of life has been broken by their absence, we continue with their memory close to our hearts, and we celebrate the continuing and inspirational recovery of those who were wounded in that attack including congresswoman gabby give ordz and our -- give ordz and our friend -- giffords and our friend and colleague. [applause] we emerge from tragedy and crisis because we are arizonans. we're western strong. we enter our centennial year proud of the land that our founding pioneers both tamed and developed while they were tested by time and circumstances. the great names, udall, hayden, mcfarland, fannon, pyle, rove

and goldwater. they're all giant bookmarks in the pages of arizona's history. [applause] and, yes, there were women too. who have rightly taken their place in those pages. women like lorna lockwood. she was elected to the arizona supreme court in 1960 and served as vice chief justice and chief justice. she became the first woman chief justice in arizona and in u.s. history. [applause] we're proud to be their children, proud of what they gave us. arizonans, native-born and coming from all parts of the nation and the world, found

their opportunity to succeed or fail in the last great frontier of the continental united states and built this state. so let us here today make this place for arizona's second century. we will not betray their confidence or squander our state inheritance. arizona will remain the last frontier of opportunity. [applause] i've always held a special place in my heart for arizona's pioneers. i've always been inspired by their strength, their sense of family and heritage, their rev reverence for tradition. many of the images you'll see on the screen today were taken by scott baxter, part of a

centennial legacy project called 100 years, 100 ranchers. memorializing arizona's ranching families who have been on the land for more than 100 years. and as you can see, scott's work beautifully captures the strength and the dig dignity ofe arizona rancher. and we are grateful for his work allowing all of us to see deeply into our roots. and we're very proud today to have scott here with us. scott, would you, please, stand and allow this chamber to thank you for your great -- [inaudible] and outstanding work? [applause] these titans of the century that we're leaving behind understood, and it's important for us to remember that the federal government played a key role in

the development of arizona. it's an example of how federal and state cooperation can and should work. now, as you might have heard, i take backseat to no one when it comes to challenging washington, d.c -- [applause] and standing up for arizona. but there was a time when we could forge the right partnership with washington. unfortunately, in far too many instances that's just not true anymore. today arizonans and americans are saying to washington we don't like an ever-expanding government threatening our personal liberties. we don't like government living beyond its means and trying to be everything to everyone.

we don't like unconstitutional and unfunded health care mandates. and by the way, we don't like open borders east. either. [applause] we have so many monuments in arizona that remind us of how things are supposed to work in partnership with washington. last march i was privileged to help mark the 100th anniversary of the theodore roosevelt dam, a great monument built at a place the early pioneers called the crossing. the crossing in the salt river was where native americans, farmers, ranchers would ford the river in the narrow gorge just below the confluence of the salt river and the tonto creek.

president roosevelt's signature on the reclamation act of 1902 supplied the funding mechanism for the dam and other projects. triggering the development of the salt river valley and the greater phoenix metropolitan area by providing an assured water supply. another monument to federal/state cooperation started in 1973 at lake havasu. and 20 years later, 336 miles and $4 billion, the central arizona project was completed bringing life-sustaining water to cities and farms and native american communities. in october of last year i had the honor of helping dedicate the o'callahan-tillman memorial

bridge. it's an extraordinary structure, the product of the late arizona congressman bob stumps' relentless pushing and prodding. the bridge retore ises the freedom to -- restores the freedom to move commercial traffic across hoover dam. with the completion of the bridge, now is the time to add another monounit to the federal/state cooperation, the future interstate highway linking phoenix and las vegas, i-11. [applause] it will connect two of the fastest-growing metropolitan areas in the country. and by the way, these are the two largest cities in the nation not connected by the interstate highway system. this project will promote commerce, tourism and trade

across the western united states. we must not wait. [applause] these are the markers to celebrate and to revere. still, we all remember arizona's dark times as we headed in to 2009. i took the helm of a ship i cherished, but it was a ship that was sinking. way down by overspending and expanding bureaucracy and, quite simply, poor navigation. frankly, those dark times are worth remembering so that we can truly appreciate how far we've come together. i know the struggles in this chamber were not fun, and and i

know sometimes tempers were frayed, patience abandoned and decor rum tested -- decorum tested. but i also know this: arizona has been saved. [applause] and you were part of that great mission. we all know it wasn't by accident. we had a plan, and it was the right plan. how do i know? because i stand here in front of you and proudly say, ladies and gentlemen, arizona now has a balanced budget. [applause]

and arizona now has a positive cash balance on top of it. [applause] but there's more. our state government is smaller, our state government is more efficient, our state government is focused on the future. now, an integral part of our recovery plan was the passage of proposition 100, the one cent sales tax approved overwhelmingly by the voters for three years. the voters were promised it would be temporary. many doubted that. well, i gave my word to the voters, and a promise is a promise. so i'm here to say this tax will end on my watch.

[applause] the tax will end after three years, in 2013. we're blessed to live in a growing state where arizona families will and should turn to public schools with confidence to educate their children. our state is a leader in allowing parents to choose a school that best meets their children's needs. we must find a way to fund the results we wand and to reward -- we want and to reward or those educators who guide us into our next century. [applause] that's my commitment to children for the next century. quality teachers, a safe

environment, a setting of participants -- parents choosing, data-driven decisions and the highest of standards. that's the foundation for job creation. something we're doing as a part of the great arizona comeback. we're creating jobs, 46,000 of them in the last year alone. [applause] in fact, arizona's job growth ranks seventh best in the nationment -- nation. not bad, my friends, not bad at all. and we're just getting started. [applause] there's more good news. our state credit outlook has

stabilized. companies again are locating in arizona, attracted by our lean regulation, competitive tax policies and a ready work force. although this is all great news, it's not enough. too many arizonans remain unemployed or underemployed. this economic downturn has been tough for them and their families, and i haven't forgotten about them. together with all of you here i intend to do everything in my power to help arizonans prepare for our ever-changing economy. together, just like last year, let's continue to lower taxes and cut regulation and tell all employers -- [applause]

and tell all employers that arizona means business. arizona is open for business. [applause] we need to make arizona the free market beacon to the nation and the world where you have the opportunity to prosper. how are we going to create the conditions for success? well, today i'm releasing a detailed, written policy agenda. now, you will be glad to hear that i won't be going through it line by line this afternoon, so just relax. but, rather -- [laughter] today is a day for reflection on an extraordinary milestone of arizona's first century. it's a time to look forward to our second century. i asked for this job because i

wanted to permanently reform state government. i'm here to make a difference. we're all here to make a difference. here's what arizonans, the nation and the world will see when we succeed. they're going to see the personal incomes of arizonans increase. they're going to see us recapture our position as a top job creator by getting back to the fundamentals that built arizona in the first place. they're going to see excellence and accountability in our education system. they're going to see a refashioned government equipped for our next 900 years of -- 100 years of prosper by. [applause] prosperity. [applause] it will be limited, efficient,

nimble government including personnel reform that improves the management of the work force, restructures the grievance and appeals system and modifies human resource practices. and they're going to see that our passion for border security and public safety makes arizona a special place for families and businesses to thrive. arizona deserves no less. [applause] this past summer arizona faced a frightening enemy, an enemy that threatened lives and livelihoods and natural beauty of our state. more than 1% of the total land mass in arizona burned. those fires proved once again that the federal land management policies have left our public

lands overgrown and vulnerable to the kinds of massive blazes we saw last year. we need a return to the responsible setting and active management of federal lands. here's my question to the federal government: how long will arizona and other western states have to burn before you do something? we can't afford another disaster. [applause] arizona is trying to lead the way with its restoration initiative. it's been delayed almost a year now. we need a contractor to be chosen so that we can start thinning our forests. it was a truly collaborative process, and it needs to be implemented now. [applause]

we've done our part. we need the federal government to do its part. along with the physical devastation, personal tragedy when struck went a veteran firefighter was killed in the line of duty while responding to the diamond fire near white river. he was a fort apache crew veteran, one of only seven all native american interagency hot shot crews in the country. that heroism is not uncommon in our state. but tragically, neither is grievous loss of those who gave the last true measure of devotion for their communities and their country. they are now forever a part of arizona, part of its history, of

courage and sacrifice. they are arizonans who love their country and their state with affection. only heros can know. here are those in uniform arizona lost in the past years including a maricopa county sheriff's deputy killed just yesterday.  [no audio] 

[no audio] >> let our service in this building honor their sacrifice. please, rise and join me in saluting them. [applause]

>> thank you. [applause] thank you. on february 14, 1912, president william howard taft proclaimed arizona the 4th and last -- 48th and last of the contiguous states to enter the union of the united states of america. ten decades later we celebrate arizona's 100th anniversary of statehood. and i know the arizona centennial commission has been hard at work traveling the state and encouraging all arizonans to get involved. nearby this chamber is the building that was created as part of an effort to demonstrate

that the arizona territory was ready for statehood. its design, by james gordon, called for the capitol to be much larger with a more prominent rotunda and large wigs for both house -- wings for both houses of the legislature on each side of the current building. but a shortage of funds meant the project had to be scaled down to what it is today. i think that building is a perfect symbol for this new year. we're scaling down this government. we're making it fit what we can afford. pleasure. [applause] in my mind it's pretty simple; less government means more freedom and opportunity for arizonans. [applause]

i'm sure you've seen that the dome of this capitol is shining once again, and i'd like to think that it's shining with the same copper brilliance once intended. it's a brilliance that says arizona's gleam is back, and its future is bright. [applause] there's just one problem. most of our capitol complex, including the building we gather in today, is not ours. so to fortify that symbol, to make all our capitol truly ours once again, i'm asking that you send me a bill by statehood day that allows me to buy back the capitol complex. [applause]

and together we can celebrate the burning of the mortgage. [applause] and just east of phoenix international raceway near turn number four there is a hill often used for seating called monument hill. toward the top of the hill is another symbol. it's a little known historical marker with a concrete x. it's called the initial point. it's where surveys for the state first began and still remains the site for all surveys conducted in arizona. as the official midpoint of the state, monument hill is, essentially, the heart of arizona. the arizona centennial, like the monuments that mark arizona's 100-year-old past such as the initial point, gives us a chance to set our bearings for the next

century, an opportunity for all arizonans to share our great pride in the past and prepare for the future with a compass heading that is true, worthy and resolutement -- resolute. ladies and gentlemen of the centennial legislature, we are the architects of our second century. [applause] so will you, please, join me as we continue to rebuild this great state? a state with restrained regulations, limited government, a steadfast commitment to the tenth amendment, an unwavering commitment to advancing freedom. and be i ask you once again

to -- and i ask you once again to join me in securing those freedoms, freedoms to build a business without suffocating regulation, freedom to build a life and to raise a family without the nanny state interfering, freedom to speak the truth about government and those who would lead it without fear of relate retribution, andm to increase your income without someone telling you that you're making too much money. [applause] however, freedom should never be separated from responsibility. so i'm asking every one of you in this room, every arizonan beyond these walls to make a personal statement in support of

our centennial year. i'm calling on everyone to make a contribution to the future. volunteer. volunteer at your local school, volunteer in service at your place of worship. volunteer at shelters, at a food bank. people are still hurting, so volunteer for the least and the lost. volunteer to provide food or clothing to the less fortunate. lend a hand at a charity, a retirement home, a hospital. anywhere your talents, time and heart can be invested in the lives of others. let the spirit of service be at the heart of our centennial year. barry goldwater wrote an article for the february 14, 1962

edition of the "tucson daily citizen" titled "arizona's next 50 years." he concluded his look 50 year into the future where we stand today with the following words: my children, my grandchildren and my great grandchildren will be as happy living here as i have been during the first 50 years of statehood. because the people will remain warm and kind and thoughtful, and even though much of what we know is desert -- as desert will have disappeared, there will remain a sufficient amount of natural beauty to satisfy all of the desires of the ten million people who will live here. and barry goldwater closed with: even though i hope to be on cloud nine or ten or whatever

they allot me, i am sure that 50 years from now i will look down on this delightful spot on the earth and be envious of the people who call arizona their home in the year 2012. well, we know barry goldwater and the rest of our pillars of the past are still watching, watching what we do with the next 100 years. our future depends on the choices we make, and if there's one thing i learned from my mother and my years of public service, it's that life is about choices. it's choosing tough -- tough over what's tempting, and it's choosing the truthful over the false.

and it's choosing a government that's necessary over a government that's merely desired. america is an exceptional nation, and i believe arizona is an exceptional state. i believe our destiny arrives in this time and in this place and binds us together in some wonderful and mysterious way with the great giants of our past. i believe that we in this chamber and the people we represent are connected in common purpose with the keepers of the arizona range. to each, we say, you have shown us the way, you and your families plowed the fields, harvested the crops, mined the

ore, raised the cattle and endured the dust and the heat, the rains and the wind to allow this territorial land to rise up as a symbol of what freedom and individual courage can create. i hope years from now that my career, my record, my life bided by god's -- guided by good's grace -- god's grace, all stand as proof of my love for this beautiful state and my caring for all who call this place home. in the his february 14, 1912, inaugural address governor w.p. hunt concluded his remarks by saying, i have the hope, the

ambition and determination to so discharge my public trust that it will be said of me that he started the state off right. well, i have a similar hope and determination; to so serve the people of arizona that it will be said of you and me together 100 years from now they started off the state right into its second century. [applause] may god bless you and our glorious 100-year-old state, and may god always bless and protect the united states of america. thank you.

[applause]  [applause] >> the u.s. senate is about to gavel in, they will be meeting in a pro forma session in just a moment. we will have live coverage when they get under way. we also want to let you know that florida governor rick scott will be delivering his second sate state of the state address today. live coverage at 11:30 eastern here on c-span2. [applause]

>> chris matthews on the attempted political maneuverings in the second kennedy/nixon presidential debate. >> second debate here in washington, nbc studios, nixon gets control of it. so he brings the level, the temperature of the room down to 40 degrees. it's a meat locker when ken kennedy arrives there. goes racing down to the basement, finds the guy in charge of the thermostat. there's a nixon guy standing guard on the thermostat, and he says if you don't get out of the way and let me turn that thing up to 65 or 70, i'm calling the police. so they had another standoff there, and they end up compromising on the temperature. so they get back up to where nixon -- the whole idea was they didn't want nixon to sweat, so the nixon people had seen him sweat profusely in that first debate, and they said we're not going to let this happen again. this is about who's going to rule america, by the way, and this kind of stuff's going on. >> this weekend, abc news' sam donaldson interviews chris

matthews on "after words," saturday night on c-span2's booktv. >> once again trgs u.s. senate is about to gavel into session, they're meeting in a quick pro forma session, no legislative work expected today and it's likely, again, to be very quick. now we go live to the u.s. senate floor. the presiding officer: the senate will come to order. the clerk will read a communication to the senate. the clerk: washington, d.c, january 10, 2012. to the senate: under the provisions of rule 1, paragraph 3, of the standing rules of the senate, i hereby appoint the honorable mark begich, a senator from the state of alaska, to perform the duties of the chair. signed: daniel k. inouye, president pro tempore. the presiding officer: under the previous order, the senate stands adjourned until 12:00 noon on friday, january 13, 2012.

>> a number of governors are addressing their state legislatures on the economic condition of their state. addressing the years goals. coming up at 11:30 a.m., rick scott will deliver his state of the state address and we will have live coverage here on c-span2. >> also today is primary day in new hampshire. voters are going to the polls in the first in the nation primary. c-span is having, will have live coverage as results come in tonight. also, reaction from the candidates. coverage begins tonight at

8 p.m. eastern on c-span. >> and a federal communications commission chair julius genachowski outlines proposed changes to the government's lifetime program aimed at reducing fraud and adding broadband internet. program currently provide subsidizes phone service to the poor using a portion of the universal service fund on telephone bills. this is about 25 minutes. >> good morning, everyone. my name is matt bennet. your host for this morning. we're delighted to have you all. when i was going up my grandmother used to write out phone numbers beginning with letters. her number was gp 66184, if you want to color. and i remember calling her from our house with rotary phones, if

those phones were still on the wall in my parents house, my children would not know how to operate them. and at third way, we are about addressing america's challenges with modern ideas, just as rotary phones evolves to the 21st century technology. that's precisely what the fcc and chairman genachowski are doing today. we will hear more, a little bit about some of their efforts to modernize this vital government agency. the fcc is in the middle of a concerted effort to create and to reform programs that will empower consumers and meet america's communication needs in this entry. julius genachowski is just the person to lead that job. of course, is appointed in 2009 where he was returning to the agency where he had served as chief counsel. before that, he spent more than a decade in the private sector working on technology industries. he was a law clerk to not one

but two supreme court justices, david souter and william brennan. and he worked in congress for than representative now senator and friend of third way, chuck schumer, among other jobs he appeared to fcc chairman is spearheading that commissions reforms to accelerate the deployment of broadband and third way strongly believes this is a vital part creating jobs and economic opportunity for this country. so the chairman is working with his colleagues on the efficient and transparent reforms, which is exactly what we believe needs to happen in agencies like this, and we applaud his and hers work to eliminate waste and to drive growth. so with that is my pleasure to give you fcc chairman, julius genachowski. [applause] >> well, thank you, matt. thanks for that introduction. thank you for welcoming me to third way, for the reasons you

said, a perfect venue for a talk on smart, responsible government. thank you all for coming. i know there's a lot of competition for your attention. you've got the football playoffs, you've got the new hampshire primary, or a wonky policy speech, once again commute chosen the less obvious but wise third way. it is a pleasure to be here to talk about our proposal to reform and modernize lifeline, and fcc program created by congress to help ensure low income americans have access to basic communication service. this is one of many fcc initiatives to harness the opportunities a few medications technology to benefit our economy and all americans. it's an important part of our ongoing effort to modernize our programs, to modernize them for broadband, and to ensure that they are efficient and fiscally

responsible. what is our mission at the fcc? since becoming chairman i've worked to focus the agency on driving innovation, driving investment, promoting competition, and empowering consumers. there's never been a more exciting and challenging time to be at the fcc. broadband internet, wired and wireless, is the most transformative new technology since electricity. it's changing almost every aspect of our economy and our lives. that's why we developed a america's first national broadband plan, a comprehensive strategy to build a world leading broadband infrastructure and bring the benefits of high speed internet to all of america. for the past two years we've been working to implement that plan, and 2011 was a year of accomplishment for all of the commissioners and staff at the fcc. we adopted a major modernization and overhaul of the largest part

of the universal service fund, end of the related intercarrier compensation system, multi-billion dollars a year program that we reformed for the modern age to meet our 21st century strategic goal. we put in place trod and balanced rules to preserve internet freedom and openness and spur investment and innovation throughout the broadband economy. and, indeed, over the last you if you look at the broadband economy, both the network and infrastructure and also services, across, investment up, innovation up, jobs up, it's a thriving sector of our overall economy although there is still much more work to do. we took many steps over the course of 2011 to make sure that the u.s. has a strategic broadband advantage in the global marketplace and that we drive investment innovation in the u.s., foster competition and empower consumers. one lesson i learned during a

decade in the private sector, and thank you for mentioning my background, a lesson i learned as an executive, an investor can't is that an organization's ability to advance its mission depends not just on what it does, but how does it. since day one, i've made it a priority to improve the way the fcc does business, emphasizing the need for smart, responsible government. and i want to commend my fellow commissioners for being part of this effort. one of my first acts as chairman was to appoint a special counsel for fcc reform. if you don't organize or reform you are less likely to have reform. i directed her to lead an agency wide review of our rules and processes. we've already, pursuant to that effort, eliminate more than 200 outdated rules and dozens of other unnecessary data collections. at the same time, we've cracked

down on fraud and abuse. in fiscal year 2011, we logged a record $67 million in enforcement penalties and settlements. consistent with a number of congressional directives to ensure modern communications are available to all americans, the fcc administers a number of programs to help connect underserved populations, rural americans, hearing-impaired, children, and low income americans. these are vital programs, grounded in a long-standing national commitment to the idea that essential infrastructure and platforms, electricity, highways, telephone service, and no broadband, should be able to all americans, and that will benefit from universal service. we've put all the programs we administer under the microscope, asking the tough questions, and reforming our programs to make sure they are efficient and fiscally responsible.

a program can be efficient and fiscally responsible and still be ineffective. and that's why we've also asked if programs need to be modernized to meet today's needs. we found that we inherited a series of programs that need to be updated for the internet age, and most also needed careful scrubbing to insure they were carrying out their missions effectively and efficiently. and so we've worked to reform and modernize our programs, rooting out waste, fraud, and abuse, and ensure that our programs are serving the right policy goals in today's broadband world. for example, we reformed the video relay service, which provides vital communicate should for people who are deaf or hard of hearing. the program had suffered from serious abuse. now we've made changes to eliminate incentives for fraud and have already saved taxpayers about $250 million. our e-rate program helps connect america's schools and libraries

to the internet. it's a successful program, and we reformed it to make it better and more efficient if we eliminate the necessary restrictions and red tape, getting schools and libraries the ability to get higher capacity and more cost effective broadband services. we remove barriers that kept schools from opening their computer labs as hotspots for their community, allowing them to provide internet use when students are not in school, allowing what we called school spots. reflecting the increasing use of digital textbooks and tablets and the need for continuous reinvention of our programs, we are also running a learning on the go pilot project to test the use of e-rate funding for off campus mobile connectivity. most recently, as i mentioned we approved a once in a generation overhaul of the multibillion-dollar programs that ensure communicate should networks reach rural america,

the largest part of the universal service fund, and the related intricate compensation system. we take a system that was still focused on supporting 20th century telephone service, and doing so pretty wastefully, paying as much as $2000 a month fofor a single phone light in se areas, subsidizing multiple carriers in other areas. we transformed into the connect america fund which will efficiently and effectively spur wired and wireless broadband build out to hundreds of thousands of homes in the near term, and put us on the path to universal broadband deployment by the end of the decade. by using smart, market-based policies and cutting waste and inefficiency, we were able to do this while, for the first time, putting the fun on a budget. and our intercarrier compensation reforms will eliminate billions of dollars in hidden subsidies of consumer phone bills and spur the roll out of innovative new communications services. tomorrow, i will circulate to my

fellow fcc commissioners and order to reform and modernize the universal service fund's lifeline program. the circulation of this draft order is an opportunity to take another major step forward in our efforts to modernize our programs for the digital age, and to make them efficient and fiscally responsible. lifeline is a vitally important program. it implements congresses directive that, and i'm going from the statute, consumers in all regions, including low income consumers, should have access to telecommunications and information services. over the past two decades it has a tens of millions of americans afford basic phone service. 's lifeline recipients rely on their phones to do everything from finding a job to coordinating childcare to calling 911 during an emergency. the other day at the fcc we heard from a local lifeline recipients who has a chronically ill daughter.

she said her lifeline supportive phone has enabled her to make multiple emergency calls to her daughters doctors at children's hospital, meaning this assistance has literally been a lifeline. but the program is also had its problems, and we can't and won't ignore them. some carriers are providing lifeline service to individuals that already have lifeline service from another carrier. there's currently no database every scythians that carriers can check against before signing up a new customer. and we've received reports that some unscrupulous carriers are abusing the program, obtaining support for consumers who did not sign up for lifeline by mailing them phones already set up for lifeline service, or signing people up for lifeline who are not eligible for the program. defrauding a public program designed to help our most vulnerable citizens is flat out wrong. it's flat-out wrong. it's simply unacceptable, and we

launched multiple investigations into these reported violations. where individuals or companies have unlawfully defrauded or abuse our programs, we will penalize them, and we will make it clear that it does not pay to rip off the government. with reforms were not proposing we would also standardize the programs accountability requirements and clarify rules to further tackle the issues of duplicative or otherwise improper support. in some cases, old rules may have invited him to runs and created loopholes some carriers are exploiting. this order would close those loopholes. lifeline has also lacked adequate cost controls. now, as the economy improves or worsens and the lifeline eligible population shrinks or gross, the size of the program will naturally fluctuate. and his expense part of the reason growth in lifeline spending during a down economy. that flexibility is crucial to

ensuring low-income americans remain connected to our communicate should networks, particularly in tough economic times when, for example, they need to call about job opportunities or to obtain basic services is particularly a cute. but much of the programs recent growth stems from waste and inefficiency, and that can't continue. the program needs cost controls, and it needs a budget designed to address those issues consistent with the program's purpose. finally, the program is outdated, focused on phone service when high speed internet has become our final communications platform. the commission started the process of reforming the lifeline program with the release of our national broadband plan in early 2010. shortly thereafter, we asked the federal-state joint board on universal service to examine the lifeline program and offer recommendations for reform, which it did.

last year, the fcc proposed rules that build on the joint board's recommendations and the order being circulated tomorrow, implements many of those ideas. we haven't waited for this order to take concrete steps. last june, the commission adopted an order clarifying that an eligible consumer may only receive one lifeline supported service, creating procedures to detect and to dsl subscribers with duplicate lifeline supportive services, and establishing an unprecedented process in partnership with major lifeline providers to detect and eliminate duplicate lifeline support, a process now underway in 12 states, that will expand to additional states in the months ahead. as result of these actions, we've already identified more than 200,000 duplicative lifeline subscriptions for elimination, saving millions of dollars every month. the order to be circulated tomorrow continues this

important work. if approved by the commission, it would reform the lifeline program in a number of significant additional ways. the order would for the first time to establish clear goals for the program. clear goals and metrics to measure progress towards those goals. putting goals and metrics in place is crucial to ensuring that the fcc and usac, which is the entity that administers the program, are accountable for program performance. one of the goals is minimizing the contribution burden on consumers and businesses who ultimately pay for the program. consistent with this goal, the draft order contains a number of significant measures to constrain the program's growth and make more efficient. for example, to prevent multiple carriers from receiving support for the same subscribers, the draft order would create a national lifeline accountability database. the order would also set a budget for lifeline. over the next few years, this would help ensure that reforms

successfully eliminate unnecessary spending while the program continues to provide enough support to connect eligible consumers to our communications networks. to ensure accountability, every carry that receives more than a specified annual amount of support from the program would be subject to independent audits every two years. the order would establish national eligibility criteria to ensure access to lifeline service for all low income consumers who meet federal standards for participating in the program, with the recognition of the unique circumstances facing tribal communities. states would be permitted to add to these criteria. the order would make lifeline reimbursement more transparent and streamlined so that carriers receive funds only for subscribers to actually serve. commonsense. the order would also take a

number of steps to protect and empower consumers, including new measures to ensure that consumers are informed of program requirements. altogether, our staff estimates that the reforms proposed in this draft order could say the fund as much as $2 billion over the next few years, keeping money in the pockets of american consumers that otherwise would've been wasted on duplicative benefits, subsidies for an eligible consumers, or fraudulent misuse of lifeline funds. des reforms would put the program on a firm footing. it would put an important program on a solid foundation for the future so it can more effectively serve low income consumers, including helping low income consumers afford broadband. which brings me to the final but perhaps most important reform, beginning the process of modernizing lifeline from telephone service to broadband.

broadband has gone from being a luxury to necessity in the 21st century. it's essential for finding a job, for example, as job postings have moved online, and for landing a job, as companies increasingly require basic digital skills. 80% of all fortune 500 companies require online applications. but one-third of americans haven't adapted broadband at home, and the majority of low income americans are non-adopters. this is a negative cycle. where the people who most need broadband access in or to find a job, develop skills, are at the biggest disadvantage. we know there are three primary barriers to broadband adoption, cost, digital literacy, and relevance, all of our work, the work of pew and other entities

confirms this. relevance refers -- as i said before, there's no single solution to closing the broadband adoption gap. that's what fcc has taken a number of steps in this area, including working to launch the connect to compete initiative, which is less government, nonprofit, and private sector leaders to tackle the barriers to adoption. like digital literacy, partners ranging from best buy to the nation's libraries that have made significant commitments to teach americans basic digital skills. on costs, the cable industry is rolling out a basic $9.95 a month broadband plan for families with kids on school lunch programs, very significant initiative. government is another powerful

tool for accelerating broadband adoption. for example, the winners of the fcc's apps working at his develop tools to help people find jobs, connect the homeless with services but public transportation russia with her bus is arriving. in general, accelerating e-government with point the government interacts with low income citizens is a real opportunity to address the barriers that we've identified to broadband adoption. and cost as i mentioned, members of the connect to can be are making broadband service as well as computers available to low income americans at significantly discounted rates. we believe that lifeline, a program that insures low-income americans can afford vital communication, can and should be part of the solution. that's why the order i'll circulate to my fellow commissioners tomorrow includes ensuring the availability of broadband to low income americans as an express program

goal, and as a first step toward transitioning the program to support broadband. it would establish a broadband adoption pilot program using savings from other reforms. the pilot program with test and determine how lifeline can best be used to increase broadband adoption of lifeline eligible consumers. the program would start by soliciting applications for broadband provider could select a number of projects to fund, starting this year. life i would help reduce cost of services, but applicants would be expected help address other challenges to broadband adoption include the cost of devices and digital literacy initiative. data from all the projects, together with data from other low income broadband up a dosha programs including btop

projects, comcast internet essentials, and sentiments if it makes, would be rigorously analyzed to ensure a full understanding of how best to transitional lifeline to support broadband. and a proposal that accompanies the order seeks comment on using savings from universal service fund reforms to increase digital literacy training at liber's and schools which could eventually arm more americans with the digital skills they need to fully participate in a 21st century economy and society. lots of people have worked to bring together a broadband adoption initiative in particular do want to thank the people have contributed ideas to the proposed order, especially the states and the joint board, as well as the government accountability office, gao, which is studied the program and made suggestions over the years but i want to commend the staff of the fcc for their hard work crafting this proposal. and i want to thank my fellow commissioners for their input, it's been a subject of discussion internally, and their input is reflected in many parts

of the draft order. i look forward to working with both of my colleagues to ensure that the lifeline program is efficient, fiscally responsible, and that we modernize it to meet the needs of low income americans in a broadband world. thank you for coming and thank you for listening. [applause] >> thank you, everybody. >> shortly we will go live to tallahassee for the florida state of the state address. governor rick scott is marking his second year to talk about the economic condition of the state and set some of those who look out for the year. live coverage at 11:30 a.m. here on c-span2. we'll be live again at 3:30 p.m. each day as head of the agency that sets internet domain names talks about the decision to expand names beyond the traditional.

>> take you to the candidate events. >> new hampshire, the same new hampshire that voted for ronald reagan in 1980 over a moderate, who's a said goodwin, said no, we will vote for the real conservative because we know the real conservative can win this race and change this country, and that's what we're going to do the netware all americans first and foremost. we want a better tomorrow, and what we're about to hand down to the next generation is unacceptable. unacceptable. it isn't who we are. we are a bunch of blue sky problem-solving optimistic can-do people. we are americans at the end of the day. this is a we are been as we follow the canvas on the campaign trail meeting voters. >> look at that.

>> i think town hall meetings are much more appropriate. i think there are much better. u.k. to explain the whole thing. >> watch our coverage of the results of the new hampshire primary with candidate speeches on c-span television starting at 8 p.m. eastern and join the conversation by phone along with your comments from facebook and twitter. watch events online at c-span.org/campaign2012. the chris matthews on the 10th of political maneuvering and the second kennedy-nixon presidential debate. pic second debate here in washington, nbc studios, nixon gets control, so he brings the level of the temperature room down to 40 degrees. itsy meat locker when kennedy arise. he goes racing down to the basement, finds the guy and turned the thermostat. there's a nixon afghanistan a card on the thermostat. he says you get out of the way of the thermostat.

let me turn that thing up like 65 or 70. i'm calling the police. they had another stand up and end up compromising on the temperature. so they get back up to a nixon, though i do what they didn't want nixon to sweat. so the nixon people at seeing him sweat profusely in the first debate and then he said we will not let this happen again. they all knew was going on. this was what was going to america by the way, this cassette is going on. >> sam donaldson interviews chris matthews on his new book, jack kennedy, on afterwards, saturday night on c-span2's booktv. >> florida governor rick scott delivers his second state of the state address today. we are going live now to the state capitol in tallahassee where the republican governor plans to outline his vision for the state. >> together be received. [applause]

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>> members of legislator, ladies and gentlemen, it is my privilege and honor to present to the jobs governor, the 45th governor of the great state of florida, rick scott. [applause] >> thank you very much. thank you. please have a seat. the senate president didn't have to introduce it because they're all doing it outside. [laughter] it also took me longer to walk in today because i think i'd know a lot more people this year. [laughter] and -- [laughter] it's great to be here.

i just want to do for a start, i have really enjoyed all of you, just meeting everybody, and just the commitment everybody has to the state. so thank you very much and thanks for everything you have done, how nice you been to my family. all right, get started. all right, thank you very much. my fellow floridians, president, members, speaker canon, members of the florida senate and members of the florida house of representatives, chief justice kennedy, members of the florida supreme court, my fellow cabinet members, chief financial attorney general pam bondi, chief financial officer jeff atwater, commissioner adam putnam, and my partner, lieutenant governor jennifer carroll. [applause]

it's an honor to be with everyone of you here today, and israel special honor for me to be your governor. as you know i've always been a big believer in getting to work early. but this is the first time we've ever showed up for work two months early. i told that to my family last night, and i said you think anybody would get it? and they said well we got it so hopefully they will. let me start by introducing my wife of 39 years, ann. [applause] and i'm really honored that my daughter, allison is right next to her, and her husband -- [applause] and her husband and my, our

grandson, august who is -- [applause] e. is eight weeks old today. so, and i apologize for everybody that had to show pictures of him do. [laughter] when allison and our other daughter was born would have iphones i couldn't show pictures like that. i'm very thankful that my family is here. [applause] people ask ann and the why we ran for the job and clearly we ran for the job together. when i told ann or tried to talk to him on anything it would be great, fine if iran, she said great, as long as i don't have to give speeches. 30 days later she is giving talks, we called them. so we clearly ran for office together. so, but the reason we ran is, there's one simple truth, we, we

can never look at our children, allison and jordan, our son in laws, now our grandchild, august, without feeling our love for them. and we know this type of love also carries a very specific duty. that duty is to leave our children a better place than we inherited. [applause] it's the same dude probably brought each of you to this chamber today, and did do a of all the children every child of this great state. like you we're willing to give our all to make florida absolutely the best place to live and raise a family. a state where you can find a job, get a quality education for your children. a state where you can enjoy a low cost of living, free of burdensome taxes, and unnecessary government interference. a state where dreams absolutely can become, absolutely become a

reality each and every day. last session, together the changes necessary to improve the opportunities for the citizens of our state. education, pension, and medicaid reform. coupled with government reorganization and deregulation. all those things have helped produce jobs. they save taxpayers money, and they improve the education of our children and they bring down the cost of living are all floridians. we worked together to accomplish all of this. and so if i haven't told each of you, face-to-face, on behalf of all citizens of this great state, thank you, thank you, thank you. [applause] like all of you, as you know, i love this job, i love my work. i tell everybody, to people

everywhere i go, if you like people and you want to try to make a difference, there is actually no better job than being governor of the great state in the country, the governor of florida. i have been on the job for a year now, and i've traveled all over the state. i've been to all sorts of small towns, although large towns, i to everybody, they live in a city can i say i probably was there two weeks ago. i've had the honor of meeting and listening to thousands of floridians, and they have shared with me their joys and their concerns. and you know what? it turns out they share the same joy and the same concern. the joy is in living in this most special place, given the opportunity live in florida, the place of sunshine, place a beaches, we have cities with energy, place where clear rivers flow to blue oceans, and a place where bold people, to build their dreams. from our shores would've launched me into the moon, and with the same great spirit,

millions have come here to plant their flag in florida soil to build something new and better. i know ann and i did. i know many of you have felt that same joy here. but with that joy comes a lagging doubt. when i talk to floridians, their best opportunities are behind them. that their children may never experience the security and prosperity that they have known. they wonder whether the ringing proclamation of progress has been silenced. that the birthright of every greater promise and opportunity that we once saw as our, as within our reach, may not be unattainable. it is clearly understandable that they would feel this doubt, following a series of a very prosperous productive years, floridians saw the unemployment rate began to climb into thousand six.

from a low of 3.3% that year, it drew to a high of 12% in the center 2010. floridians saw home values drop, wages decline, in jobs and opportunities fade away. my fellow floridians, i'm here today to tell you that promise and opportunity absolutely will return. in fact they are returning, even as we meet here today. we have many miles to go. some of them clearly will be painful. our higher journey is already underway. this year, and today, we see the rebirth of the even greater florida. but don't take my word for it. let's look at the numbers. in the past year, floridians, not government, created almost 135,000 new high-tech sector jobs. [applause]

thank you. ethic is that other members i said seven steps to 700,000 jobs. so be glad when we get to the 700,000. so we netted more than 120,000 total jobs in the first 11 months of 2011. that's the third most of any state in the nation. in florida, those new jobs were just the second largest drop in unemployment in the country. there's only one state ahead of us. so, when my campaign can when i said let's get to work, it wasn't just a slogan. florida got to work, and each floridian deserves the credit. [applause]

but who also deserves the credit are each of you, the legislators in this room. last year you passed and i signed a budget we balance without raising taxes or fees. despite a revenue shortfall of nearly $4 billion. we do this by making government leaned and effective. thank each of you for displaying the unprecedented courage and commitment. [applause] the steps we've taken over the last year have made a positive difference in the lives of working floridians. we need to continue though cut red tape, lower taxes, and bring growth to florida. in addition to jobs growing, just three weeks ago the u.s. census bureau announced that despite a record low growth rate on the national level, florida grew by more than a quarter million people and a 15 month

period. that's amazing. [applause] this makes us the third fastest growing state in the country, and puts is within reach of passing the state of new york in population. this is a clear sign that the promise of florida still burns bright. and i should add, to all of our friends in new york, come on down. [laughter] and illinois. our temperature outdoors is about twice as high as yours. and your tax burden, per citizen is about twice as high as ours. those are good numbers for us. think about it. the state of new york which is about the same population as florida does, as a budget roughly twice as large as ours. on top of what i call of these countries they see what's the temperature, and then i ask what is your taxes and how much did you have to pay last year, you

would have to be dramatically less. so, you the legislature, all need to be commended for years of tough decisions, balancing our budget and delivering quality services in education, and infrastructure to our citizens, at half the price new yorkers pay. half the price. [applause] and for those of us already in florida, what do these numbers tell us? they tell is the journey ahead is long and will continue to test us. as a people, the decisions we make in the next few months will determine whether we continue to create a business climate, a business climate that will produce jobs and opportunities for floridians, whether we fully recapture the spirit of human potential, the core of what it means to be a floridian. i'm absolutely convinced that we will. my friends, the state of our state will continue to improve. [applause]

and one of those decisions we need to make to ensure these things happen, there are many. so i would like to focus on what i believe are the three most important jobs i have as your governor. one, ensuring that floridians are able to gain employment. two, securing the right of every floridian to a quality education. and three, keep the cost of living low so that the families and businesses that are in our state can continue to prosper and grow. and that the ones that are not here, know that they have to get here as soon as they can. when it comes to jobs, it's important to remind ourselves that private businesses create enduring jobs, not government. what government gives to one

person doesn't has to have to be taken from the pocket of somebody else. there's something in again and overreaching in thinking we have the superior wisdom to micromanage and economy. having spent decades in business, now one year in government, i am convinced more than ever that with few exceptions the best thing, the best thing government can do is to create a level playing field and then get out of the way. [applause] get out of the way and let people compete. what happens with competition means people get better, quality gets better, services get better, prices get better.

that if we put florida companies in the position where we can outcompete companies in any other state in any other country, what happens? jobs are going to grow like crazy. now, as we all know, small businesses create most of the jobs in florida. i knew this from my own experience. i started in business when ann and i bought a donut shop so my mom could have a job. before long we had to do it shops and we have more employees. to resources are absolutely critical in allowing me, or any small business, to grow and to create these jobs. capital and time. every donut i sold gave me more capital to hire more people and buy more equipment. by the way, if you own a donut shop and you don't have to worry about all your employees eating the does. after the second day, it was too hard. [laughter] we always told, have as many guns as they wanted.

after the second day, they didn't eat any. [laughter] after we sold out, i love donuts. [laughter] so i'm back to eating donuts. so, but every minute i spent focus on the business resulted in growth. and more jobs. so we have somebody in the gallery today who also know something about the potential of job creation in donut shops. rachel came to the united states 12 years ago from the philippines. and she is own, anybody from canada, she is owned the coal is donuts in tampa for the past year. so rachel hosted me in my first let's get to work to come and i told her i would not be the best at making donuts. but i know how to sell them. and it worked out. we sold out 240 dozen doughnuts, start i think it's 6:00 where they're all gone by 8:30. so, so nicole has been in business for 30 years. they have two locations. they have been voted best donuts

in tampa by the tampa tribune, and one of 24 best donuts in america by travel leisure magazine. they recently added cut? no, and my mom came down and now they know how to sell a great apple fritters. [laughter] so rachel and her husband, luther, are here, if they will stand a. they're great example to. [applause] they are a great example, the hard work it takes to run a small business and just our economy will grow. so i'm very appreciative that they came you to create a lot of fun that day, and there was media there, one thing about this job, there is media around a little bit, and so i was,

rachel thought i was taking too long to the media show she brought a bunch of donors to me and told me i had to get to work. [laughter] the media of course love that. so taxes and regulation. there there is a great destroyers of capital for small businesses. almost every dollar i earned as a shop owner went to the donut shop a so every dollar taken in taxes froze the growth. and that impacts jobs. almost every minute i had today also went toward a growing our small business. so every minute i had to spend addressing some new rule or regulation, also slows growth. so when growth slows in small businesses, what happens? jobs are the first casualty. so this session we need to lower, lower burdensome taxes on small businesses, and continue our mission of slashing red tape in florida. [applause]

we must also improve the machinery by which government seekers you know, can get a job. i propose greater accountability for our workforce board so that tax money is not wasted, and the purpose of those boards is to build, to get people jobs. that's the entire purpose and the only purpose. i'm also asking you to require job training for those who are receiving unemployment checks. [applause] i'm sure like in your life, my lack of every challenge creates an opportunity, and time between jobs gives unemployed floridians

the opportunity to learn new skills. now, by lowering taxes to eliminate unnecessary regulations are critical, the bedrock of in the sound, sustainable economy is an educated workforce. well-equipped to meet the challenges of an advanced global marketplace. my own life i've seen firsthand how education puts the american dream within reach. as you know, i grew up poor. as a kid i delivered newspapers for $5 a week. when i was not delivering newspapers i was filling tv guides for 4 cents a copy, and i flipped hamburgers for 85 cents an hour. those are all jobs that i learned something that everyone of those jobs. so today, i stand before you privilege to be the governor of the greatest state in the greatest nation in the world. this is the american dream. [applause] it's a story told a thousand

times with each generation. and the means by which it is accomplished is an effective and accountable education system. so, we can have great weather, we can have beautiful beaches, we can have a wonderfully strategic location, which we have, but if florida doesn't provide the intellectual talents to make our businesses competitive, we will become a footnote when this century's history is written. but if we can continue to create a culture of excellence in our schools, florida will merit a full chapter in the history that describes a reawakening as a mighty prosperous nation and state. [applause] and we begin to do this by building on the success of last session when we increased school choice for florida's parents. we also refocused our outdated

tenure system into a system that can reward its best performers for excelling in educating our students. as you know, as you each know, none of that was particularly easy. but all was obviously necessary if we're to give our children their chance to grasp the future, i want to thank each of you for your willingness to confront those issues because i think in long-term do have a dramatic impact on our state. so i spent the last two years as you know traveling the state and listening to floridians all about their patients. for the future of our state. so i would like to take a moment now to recognize one of florida's talented, hard-working educators, who is taught me a great deal about the bright futures of our students and our state. she is with us here today in the gallery. heather is a first year teacher in a rural farming community. i the opportunity meter when i

talked passionate taught school for day this fall. she is very committed to her students. she teaches american government. her students, she teaches honors, advanced placement, english -- easy for me. english language learners everyday. and just as all of us have hopes and dreams for our future, our kids future, our grandkids future, so do her students. so when i talk to her students, and they want to do everything from being a chef to a veterinarian. they want to be a hairdresser, a doctor, a lawyer, some of them wanted to own shops. they weren't sure what jobs but they want to own shops. but educators like heather, these students and their dreams are clearly, that's what's going to try the prosperity of our state. so if heather would stand up i just want to thank you for all you do. [applause]

you know, my other daughter taught special needs kids for four years. she is going back to a third degree now, but gosh, these teachers just love the students. you can see it with heather and her kids, and i can see it with my daughter. so after having to stay and listen to parents, teachers like heather, and other students, i heard one thing very clearly over and over the floridians truly believe that support for education is the most significant thing we can do to ensure both short-term job growth and long-term economic prosperity for our state. and you know what? are absolutely right. that's why this session i ask you to continue your commitment to education. to ensure that the difficult

decisions we must make on the budget our focus on prioritizing the things we all know are essential to the future of our great state. as you know, my recommended budget includes $1 billion in new state funding for education. [applause] i ask each of you to consider that, take my recommendation very carefully, think about a very carefully. agenda as i said on this point, i just can't budge. i ask you again to send me a budget that significant increase in state funding for education. this is the single most important decision we can make today for florida's future. but our efforts towards education cannot stop, cannot end there. florida has a rich cultural history surrounding its college and universities. don't take my word for it. ask any anthropologist.

[laughter] [applause] and by the way, my younger daughter is going to shoot me as soon as she reads that part of the speech. but we need to be realist about bass. somewhere out there today there are government officials in brazil or india or china, and they're not debating whether they should provide students with a pragmatic knowledge, pragmatic knowledge to seize the larger piece of global economy. know, the only debate they are having is how quickly they can become dominant global players. ..