cases people say she is a wacko when you read her letters she is very articulate and she knows what she's saying. she's a skilled letter writer and she has good advice for president lincoln. for example she urged him to get rid of general mcclellan and getting general fighter and that was true and she also urged him to give a lot of support to the

former slaves who were peacekeeping to the north what they were calling contraband and to support them so that they would not just be a burden on people but to provide housing and clothing and shelter and i think she writes a nice letter to lincoln in which she said look you have all of this money for soldiers and they are being well taken care of. send me some of that money and i'm going to buy blankets and clothes for the contraband who don't have anything. and i think it really shows she was interested in a lot more than just the latest fashion of clothes or jewelry or something

else but they are nice letters. >> i was just curious about how many letters do you have? is curious about how you choose which letter to going to the book to and i know there are some that are not available for the public eye yet. did you choose a because the was the most interesting were showed the best portrait of a president or just once you thought were the best to be published? >> the first question as there were -- i probably looked at four or 5,000 different letters. there are a lot of letters and some of these corrections. hundreds of letters between husbands and their wives. generally i

>> the economy is slowly healing but the problems that caused the recession were a long time in the making. i think people understand we're not going going to solve them all overnight but we are making progress. it's important we continue to make that progress. and as we make that progress we need to put the foundation for an economy that is not subject to nearly as extreme fluctuations as we have seen,

that has more shared growth as the economy expands, all segments expand as well. that means investing more in education. it means making sure that the children have access to higher education. it means investing in our infrastructure so we have a more productive economy in the future. so i think it requires many of these steps, but in the near term staying focused on making sure that the recovery continues i think is essential. >> i'd like to open it up first to questions from the press. yes? [inaudible] >> my question is, do you

believe that recent statistics on housing, auto sales and labor and i'm going to suggest that there may be more economic growth in 2012 than some forecast, including perhaps owing be? >> that's a bit of a trick question because the council of economic advisers together with omb and treasury make the forecast, and we produce forecasts twice a year. the last one was over the summer, the midsession update. we will release our next forecast together with budget and i do want to get ahead of the budget process. but if you look at the statistics that are coming in, it's clear that they're painting the picture of an economy that is slowly recovering, slowly but surely recovering. i think it's important we keep that momentum going forward, and the steps i would highlight most importantly are extending the

payroll tax cuts to the end of year, extending unemployment insurance benefits. the congressional budget office concluded that of all the measures they have looked at, extended unemployment benefits have the most bang the most bang for the buck in terms of supporting demand, raising economic growth, and creating jobs. [inaudible] >> the trend was clearly apparent, so why did tax policy, as an answer to specific answer at all? >> you know, we were in a different policy environment and 97 that we are today. 97 tax rates increase in the early '90s. there was not discussion in 97 for the very wealthy. that happened early -- that happehappened in the early 2000. we saw inequality continue to

rise into 2000s. and i would add tax policy to my list of potential factors for causing a tremendous widening that we've seen in after-tax income. [inaudible] >> i have no idea. i can tell you from my own perspective from looking at the data, tax policy, particularly the tax cuts for the very wealthy, i alluded to a large reduction in state tax have exacerbated the divisions in income that we have seen expanded in the u.s. >> given that what is a common one in four, one in five home loans is underwater and what, one in 13, i think, more than 90 days past due at the moment, how

hard is it going to be to do anything about income inequality and to visit more aggressive attempt to address these differences in mortgage values and home value? has that typically been the way people build wealth in the united states aside from the top quintile? >> thanks, mike. the housing market clearly poses challenges for the economy going forward. when i mentioned earlier the problems the economy is facing a long time in the making, one of those longtime making problems was the housing bubble. that burst 2006 or so. prices came down considerably. middle-class families who have most of their wealth tied in the houses saw a committed loss of wealth as a result. and that legacy has been a head wind for the economy going forward. households are trying to pay down their debts.

you mentioned the large number that are underwater. and the economy has been recovering inspite of those problems. but the recovery would be more robust if we did have those problems so those problems are certainly still waiting on the recovery. i know that i would mention, because we overbilled so much housing in the 2000s, residential construction has been very flat. in a typical recovery residential construction is very strong. that's another drag on the recovery. again, the reasons why the recovery hasn't been faster direct result of the kinds of problems that have been building up for decades and came to a boil in the recession, over boiled in the recession. and we are kind of digging our way past those. i think it's extremely important that we take the steps that we

can to keep the recovery going, that confidence comes back, and that we get into a more virtuous cycle where we continue to move towards a more virtuous cycle, where more people are going back to work, making more income and they're feeling more comfortable, more confident, they are spending more. and a stronger economy overall will certainly help the housing market, but that is not enough. from the very beginning when i joined the administration in early '09, communism of effort has gone in to trying to assist the housing market in the sense of help homeowners modify their mortgages, refinance their mortgages, take prudent steps to help responsible homeowners. so, that they can take advantage of the low interest rates that we now have, and that will also i think help the recovery going forward. >> last question.

[inaudible] >> a major reason for income inequality. do you agree, and if so, how should we think about the best way for the nation to think about that? >> we live in a global world, there's no question, and the world is more integrated today than it was back in the '90s. we have had periods of very strong growth even when we were internationalizing more, the late 90s for example. we saw all segments of society growing at that time. so even though we are in a more globalized economy today, even though we're competing with lower paid workers in other countries, we have seen that it's possible for us to thrive in this kind of an environment. the right steps i think will make this increased globalization and advantage for the u.s., for all segments of

the u.s. the president held an event yesterday, which i was fortunate enough to attend, on insourcing. and to listen to the stories of the companies where they can go through their cost, enterprise costs are global cause when i think about transportation, when you think about supply chain risk. they are beginning to make decisions to bring much more work back to the united states. and that i think is a trend we will see continuing, and we need to look at ways that we can speed up that trend. another area i would highlight is the advantage in the u.s. is more advanced production, more advanced technology, higher skilled, higher value added type work. we need to invest more in education of the future american workforce so that we can continue to thrive in this kind of an environment. i think, again, this is the

second speech i've given as chairman of the council. i gave this speech in the center just before christmas in charlotte, north carolina, about what kinds of things can we expect to continue in the united states. jeff gove is something real interesting which is someone ask what's going to change, no what's going to stay the same. i start you think about the whole u.s. economy from that perspective. one area where we have tremendous transfer in u.s. is innovation to quit the best universities in the world. where the most daring entrepreneurs. we have a system that brings all of that together. and i think what we need to do is to make sure that as a country until we can take advantage of these advantages because the world is moving more in this direction, and we do have the resources to match this moment and take advantage of the opportunities to produce better products, to take advantage of

large markets abroad. but we have to make sure that we take the steps that all segments of the country can benefit from it. >> thank you, chairman. please join me in thanking you for taking your time today. [applause] >> we're done. [inaudible conversations] [inaudible conversations]

[inaudible conversations] [inaudible conversations]

>> each january, state governors lay out their agendas and what are what are known as state of the state addresses. up next on c-span2, we'll hear from west virginia governor earl ray tomblin who will run for reelection in november. and remarks from kansas governor sam brownback who was elected in 2010. >> house minority leader nancy pelosi will sit down with politico correspondent mike allen today.

>> c. spent road to the white house coverage takes you live to the catered events all this week. >> we need to limit these entitlement programs. we need to cap them, cut captain, captain, send them back to the states, remove the federal oversight, and let the states have the flexibility to deliver these programs. >> we have brought to the forefront, others have token we talked about it. to get in office and the do nothing about it, and right now it is this liberty movement which is seen as a patriotic movement, and individual liberty movement that is saying to the country into the world, we've had enough of sending our kids and our money around the world to be the policeman of the world. it's the time to bring them home. >> as candidates get their message out, meeting voters --

>> we are so happy. >> thanks. >> i was undecided until right now. >> thank you so much. >> the endorsement in texas? >> we feel very good about that. we feel that conservatives are coalescing around a camping and that's going to be good for us, not just south carolina but other go forward. >> find more video at c-span.org/campaign 2012. >> he outlined his goals for the new term, specifically addressing investment in manufacturing and creating stronger mine safety regulations. governor tomlin was elected during a special election last october. he will be up for reelection this november. his remarks are about 45 minutes. [inaudible]

[applause] >> do you do anything else, or do i just take off from here? [inaudible] please be seated. mr. president, mr. speaker,

members of the board of public works, justices of the supreme court of appeals, members of the state board of education, members of the legislature, distinguished guests, and my fellow west virginians. i am humbled and honored to stand before you this evening. we are on the verge of experiencing a new and dynamic chapter in the history of west virginia. [applause] avenues of opportunities lay before us. there will be challenges along the way, but make no mistake, our trajectory is upward. it is our strength, talent, creativity, and clarity of purpose that gives us the capacity to achieve greatness. and while we can achieve

greatness, our success is not guaranteed. outcomes will be based on our willingness to use our unique abilities and skills for a greater west virginia. each of us can make a difference in the lives of our people and our state. and with the knowledge and confidence that the state of our state is stable and strong, now is the time to build on our strength. [applause] this is not washington d.c., where partisan bickering has subverted the legislative process. this is west virginia. [applause] this is west virginia, where the republican and democrat, liberal and conservative, come together,

resolve differences, and take decisive action. this ability was made clear, when we came together and overwhelmingly passed legislation to develop the marcellus shale, create jobs and provide economic benefits to the entire state. [applause] this is not washington d.c., where uncontrolled spending has led to uncertainty, a lack of confidence, and a fundamental breakdown in the operation of government. this is west virginia, where we -- [applause] this is west virginia, where we figured out in a realistic way to cut waste, balance the budget, reduce the tax burden, and commit to our citizens and our businesses, that this is a great place to work, live, and play. [applause]

this is not washington d.c., where the epa and other governmental agencies engage in back-door policy making that threatens the lives of every, so many of our fellow citizens. this is west virginia, where we appreciate the need for reasonable, open environmental regulations but understand the fundamental need for jobs and for low cost, reliable energy developed right here in the united states of america. [applause] we have a responsibility to the people of west virginia to manage our state's finances responsibly. i take this duty very seriously. our continued success depends on the choices that we make about every dollar we take in and

every dollar we spend. not every governor can say this: the 2013 budget i present to you this evening is balanced. [applause] and i do not propose creating any new taxes. the budget i submit to you tonight contains $84 million in tax relief. [applause] as we promised, 10 days ago, the sales tax on food was reduced by 1% and another 1% reduction is scheduled in july. this provides $54 million in relief directly to consumers in the state. and this year we have further reduced the tax burden on

businesses by approximately $30 million, by lowering our business franchise and corporate net income tax rates. think for a moment about these changes. this administration and this legislature, in bipartisan cooperation, enacted these tax reductions for individuals and employers, all while balancing our budget and providing the essential services our citizens need. [applause] we in west virginia must continue to forge our own path. we must continue to build bridges between business and labor to create jobs. we must come together regardless of our political persuasion, to put west virginia first. our citizens demand it, and their message is clear, they want good paying jobs.

therefore, i ask each of you to join me tonight in building a better, stronger, and more vibrant west virginia, not just for tomorrow, but for generations to come. [applause] a year ago, i pledged to go anywhere, do anything, and spend every waking moment focused on encouraging the creation of more jobs. while we have had success, our focus, must remain laser sharp. our future demands that we create the right economic environment where the private sector is encouraged to invest, and create good paying jobs with benefits. jobs that allow every hard working west virginian the ability to provide a good life for their family. after a year of leading our state, i want you to know that my commitment to that vision is

stronger than ever. 2011 was a year of significant progress. companies invested almost $3 billion in our state. this is a 36% increase in investment over 2010. those investments reflect the diversified nature of the economy we are building. companies like toyota, who for the sixth time in their history here in west virginia has expanded, investing $64 million and adding 40 more jobs in putnam county. quad graphics in berkeley county made a $15 million investment to strengthen its manufacturing platform. this move will create 400 new local jobs. caiman energy in marshall county will invest over a quarter of a billion dollars for a new processing plant; macy's will complete construction and open

their berkeley county fulfillment center employing over 1,000 west virginians, amazon will create 200 new jobs and alcon over 300 jobs in cabell county. orrick, herrington & sutcliffe will grow in ohio county by another 100 jobs; rue 21's distribution facility in brooke county will expand and add 75 new jobs. and the list goes on and on. equally as important, i'm confident that this activity is only the beginning. we are helping our existing companies succeed and grow by exporting more of our resources and products around the world. for almost all of the past two years west virginia has led the nation in export growth. once again in 2011 west virginia demonstrated our national leadership in energy production.

we successfully recruited new companies like markwest liberty, which has announced that it will invest $400 million to build a new natural gas facility and pipeline in wetzel and marshall counties. other energy companies like weatherford international, superior appalachian pipeline, dominion transmission, american municipal power and aep are all making new investments in our state. aqua transfer and oilfield solutions, a high-tech company relying on natural gas development has chosen upshur county to open a new office that will create 50 jobs. in kanawha county, the audubon company is creating 75 jobs to provide engineering services for oil, gas and the petrochemical industry. and of course, companies such as arch, alpha, alliance, united coal, patriot and countless

other mining companies continue to invest in west virginia, maintaining and creating jobs. coal is and always will be a part of our future. [applause] our state continues to demonstrate that it can compete on a global level in a worldwide economy. one such example is carbonxt, inc., an australian based company, which recently announced plans to build a $30 million plant to convert coal into pure carbon. a product which will help make coal-fired plant emissions burn cleaner. this clean coal technology will be produced here in kanawha county and will create 40 high-tech, manufacturing jobs.

all of these are important investments in our state and we should all be proud that these companies share our confidence in west virginia and her people. and, while we have made progress and our unemployment rate is below the national average, we need more good paying, stable jobs. too many of our citizens are still suffering from the recent recession. we must stop the outsourcing of american jobs to foreign countries. we must reinvigorate manufacturing in our state. this is west virginia where made in america still has meaning. [applause] as leaders of this state, we need to understand that our mission is to create a business climate that fosters job development. it is our responsibility to have

the discipline, the know-how, the determination and most importantly, the pride, to take steps that will unleash the engines of our economic future. we must be responsible stewards of state finances and live within our means. we did that with our west virginia unemployment trust fund. our fund is stable and solvent. while 27 other states have had to borrow billions of dollars from the federal government to pay benefits, we have not borrowed one dime. [applause] and now, those states, have had no other choice but to levy higher taxes, which makes west virginia more attractive. we took the necessary steps to reform and privatize our workers' compensation system. that effort has resulted in

rates that have been reduced by more than 47% since 2005. our premiums are now below the national average. our hard work is paying off. our bond ratings continue to improve, and that saves taxpayers money. let me now speak very directly about one of my problems with washington. as long as i am governor i will continue to fight this administrations war on coal. [applause]

a few months ago, a federal court agreed with our lawsuit and ruled that the federal epa had in fact overstepped its authority. i will keep fighting until washington recognizes that one of the keys to america's future is the use and promotion of our natural resources. it is a fight from which i will not shrink, and one that i fully expect to win. [applause] just as we must continue to mine coal, we must make certain that our miners are safe. we have created a new rock dusting laboratory. we have increased the number and the salaries for our mine inspectors. we are re-checking our rescue chambers to make sure that they are safe. and, we have diligently worked to determine the causes of the upper big branch disaster to make sure a disaster like that

never happens again. [applause] to build on this progress, i will submit legislation designed to improve mine safety. this legislation will enhance rock dusting standards, protect whistleblowers, mandate methane sensors at long walls, and increase pre-shift reviews. we will prohibit mines from announcing that an inspector is coming, and we will provide more training for self-rescuers. [applause] we will also begin a year-long study on the training of our inspectors, our foremen, and our miners. coal mining is a dangerous profession, but we can make it safer.

one death in our mines is one death too many. [applause] finally, now is the time to make sure that our mines are drug free. much like virginia and kentucky, we will implement our own drug-testing program. no workplace can tolerate a person impaired by drugs, particularly in our mines. [applause] in addition to our use of coal, there is a new opportunity of which we must take advantage. thousands of feet below the surface of west virginia is the marcellus shale. the extraction of natural gas and other byproducts can be a significant job creator and provide billions of dollars' worth of economic benefits to our state. we've taken the first step.

with broad bipartisan support this legislature passed reasonable regulations to protect the environment while providing the regulatory certainty needed to encourage new job opportunities right here at home. [applause] tonight, i am proud to announce that new, good paying, permanent jobs will be coming to harrison county based in part on the growing opportunities associated with the development of the marcellus shale. the baker hughes company will create 275 new jobs at a new $40 million facility to be built along interstate 79. this is one more tangible sign of the enormous potential to create west virginia jobs through the responsible development of our natural resources. [applause]

we thank baker hughes and we welcome chad deaton, executive chairman of the board of directors and george bernhardt, managing counsel, who are with us here tonight. would you please stand up? [applause] natural gas can help reduce our nation's dependence on foreign oil. cost effective technology is now available to retrofit our vehicles to run on natural gas. i have entered into an agreement with seven other states to work with automakers to encourage increased production of cars that run on natural gas. we will also explore the conversion of some of our fleet operations to natural gas. it makes sense to start using fuels for our cars and buses

that we produce right here in west virginia. it is in america's best interest, and we can lead the way. of course, one of the biggest potential benefits of the marcellus shale development is the opportunity to re-energize manufacturing in our state. one ethane cracker, by itself, would mean a multi-billion dollar, multi-year investment in west virginia with thousands of construction jobs and hundreds of good paying permanent jobs. the american chemistry council estimates that we could create an additional 12,000 manufacturing jobs in west virginia with the construction of an ethane cracker. this session i will submit legislation to further refine our incentives in a fashion i believe will strengthen our competitiveness in achieving that goal. [applause]

and let me be clear about my intentions. i will do everything in my power to make sure that west virginia is positioned to take full advantage of this opportunity. i will not limit our efforts to just one project or even two. we will compete for every project, every dollar of investment and every new job that relies on the natural resources with which we have been so blessed. [applause] it is essential that we don't forget the importance that modern infrastructure plays in west virginia's economic future. we must find innovative ways to invest in safe water and sewer systems, invest in new and improved schools, in roads and broadband access. to aid in this goal, i will submit legislation that will

call for 50% of surplus revenues to be placed in an infrastructure fund once the rainy day fund reaches 15% of the general revenue. [applause] we have to invest in ourselves if we expect others to invest in us. while speaking about infrastructure, let me take a moment to focus on driver safety. with the advent of iphones, blackberries, 4g networks, and texting, the number of people who are using mobile phones while driving has and continues to increase. and, with that increase, there has been an equally dramatic increase in the number of driving fatalities where distracted driving was involved. this is a dangerous activity. it is unsafe and it puts all drivers at risk, especially our young people.

now is the time to save lives. i will submit legislation that will ban the use of cell phones without hands-free equipment and text messaging while driving. [applause] i want west virginians to remain free from distracted drivers on our public highways. as we embark upon a new year, we tend to take stock of where we have been and make note of where we are going. at no other time has this sense of past and future resonated more, than with the joy and anticipation of our troops coming home. let us express our heartfelt thanks. i would like to introduce sergeant first class benjamin gentry iii and staff sergeant james providenti, who were part of the first and last units deployed to iraq and first

sergeant robert cassas, who was deployed in afghanistan. we are so glad that the best among us, who volunteered to serve and protect us, are back. gentlemen, please stand up. welcome home. [applause] [applause]

as we welcome our troops' home, and wait for others to return, we must do all that we can to help provide rewarding opportunities for our heroes. they are returning with significant skills and experiences learned from their military training, and that will lead to opportunities here at home. that is why i am proud to announce the west virginia employment initiative program. now is the time to increase employment opportunities for military members and veterans by providing job training and vocational counseling, facilitating job searches, and referring qualified applicants to job openings. it is right and fitting that we do all that we can to serve those who have served us; sacrificed for us and done so much to preserve our freedom and protect us from harm. [applause]

everything i have touched on tonight centers around providing job opportunities for all west virginians. speaking of good jobs, i want you to join me in congratulating two outstanding universities that took us to victory in two bowl games this year. let's express true west virginia pride by congratulating coach doc holiday of marshall and tyler rader of west virginia university. [applause]

let me be clear that nothing is more important to creating good jobs than providing a world class education for both our children and adults. the world economy demands lifetime learning. we must start by refocusing our education system on the best interest of the student. if we want our children to have a future of their own choosing, we must meet their educational needs from the first day of school until graduation and beyond. we must elevate our aspirations, and challenge one another to participate in the world as productive, income-earning members of society. to get a better understanding of best practices in our sister states and identify efficiencies in our education system, we hired outside private experts to conduct an efficiency audit.

as a result of that work, we now have ideas that can save approximately $90 million for use in our education system every year. these recommendations have the potential to eliminate overlap and allow our schools to work smarter and more efficiently. the audit identified potential areas where west virginia can develop its own best practices for our education system. the audit recommends using new technologies to assist rural communities, giving local officials more authority over their schools, better methods for evaluating teachers, enhancing our teacher mentoring program, and adequately compensating our professional educators. we cannot achieve all of these goals overnight. but it is one of my highest priorities.

every west virginian concerned about our education system needs to take the opportunity to review and discuss this report so we can begin to take advantage of its recommendations, and do so in a way that is right for west virginia. this year, i will introduce legislation incorporating student achievement into every teacher performance evaluation. this bill will codify a pilot program currently in place and expand it to require yearly assessments of teacher performance. it is a plan i believe can help make our good teachers great and identify a teacher who needs our help to be better. [applause] i will also introduce legislation that will establish a pilot program to improve under this pilot program, local administrators and educators will be granted flexibility to

attract qualified teachers into those local schools in an effort to obtain better results for our students. this legislation will be implemented in coordination with the reconnecting mcdowell project, a public - private partnership involving over 40 organizations that will focus on everything from jobs and economic development, housing and transportation, technology and services for students and their families. ..

[applause] >> save the children will partner with three elementary schoolses and their administrators to focus on literacy. children in rural counties should have the same chance to succeed as children who live in the most of affluent areas of america. [applause] because of this, i am confident that we will bring these opportunities to the children of mcdowell county. i'm also confident these efforts will serve as a model of what we can do throughout the state when we all work together. [applause] learning opportunities come in all forms and are not restricted just to the classroom.

another landmark education opportunity for our citizens and for our young people all over the world is taking shape in fayette county. in 2013, the national boy scout jamboree will attract people to the new home of the boy scouts of america at the summit bechtel reserve. [applause] in 2019 for the first time in 50 years, the world jamboree will return to the united states and bring 80,000 scouts and their families to the spectacular hills of west virginia. ms. . [applause] we pledge to make the scouts as

proud of their decision to come to our state as we are to have them here. i want to introduce to you now my factory, the coo of bechtel summit reserve, steve, lead volunteer for the boy scouts of america, and ask you that you join me in thanking them for choosing west virginia as a permanent home for the scouts. please stand, guys. [applause] we must also continue to bridge the gap between our education system and its research components and the potential for new business development with job creation. one of the best examples of the

fusion of these three areas can be found morgantown. launched as a spin-off from western university in 2001, it was largely financed by a loan from west virginia jobs investment trust. it was recently recognized as one of the top ten innovative technology companies in the world for the life sciences. [applause] this recognition was for the development of a first-of-its-kinds imaging technology that allows for realtime imaging of real cells. the result is that this start-up company nurtured here in west virginia will revolutionize the precision and speed of which cancer is diagnosed and monitored. protea represents in every way what i know west virginia can

produce with smart partnerships between our colleges, university and the private sector. [applause] and as we do every year, i also want to congratulate a teacher who strives to bring out the best in their students. it is very encouraging to know that we have wonderful, committed teachers like bob morris of clay county high school. mr. morris is the toyota motor manufacturing high mark blue cross blue shield teacher of the year. bob teaches agriculture and forestry in clay county by also continuing his own education through wvu's extending learning program. so let us congratulate bob morris for being recognized as the teacher of the year, and let's thank yogi suzuki, president and general manager of toyota motor manufacturing of west virginia along with fred

early, president and kathy mcallister, communications manager of high mark blue cross blue shield for their continuing support of our educators. would y'all, please, stand? [applause] >> reducing the unemployment rate is not just about education or the availability of jobs. unfortunately, there are some places in west virginia where jobs are available, but there are not enough qualified, drug-free west virginia yangs the build them. illegal drug use and the abuse of prescription drugs affects

all of us. it is that equal opportunity destroyer of dreams and lives. it affects the poor, the affluent, the educated and everyone in between. that is why this past year i formed the governor's substance abuse advisory council and six regional task forces. my advisory council and task forces have been collecting the facts, working with prevention, detection and treatment experts in order to increase the access and effectiveness of our substance abuse programs. solving our drug problems is not just about increasing criminal penalties. i have learned that we must use technology to fight our drug problems and enhance enforcement. we must use our prescription drug monitoring program so that when an abuser tries to doctor or pharmacy shop, we stop it. [applause]

i have also learned that far too often graduates of our state programs do not return to the work force because they cannot pass a drug test. when this happens, we have lost valuable education dollars, we have lost a productive member of our community, and we have lost the opportunities to strengthen our economy. i will, therefore, require that individuals pass a drug screening prior to enrolling in their state taxpayer-funded work force training programs. now is the time to get serious about ending drug abuse and addiction. [applause]

>> tackling our state's drug problems will take time, commitment and perseverance. the same is true with respect to handling our state's finances. our nation is still recovering from the worst recession since the great depression. the global economy is threatened by instability in europe and beyond. the ballooning federal debt means that we can expect the federal government to make decisions that will negatively impact our state. but this is west virginia. our state's finances are a source of strength. we have a proven track record of balancing budgets. we have one of the best rating funds in the nation with -- rainy day funds in the nation with a surplus of over $120 million. we pay our bills on time, and we keep our financial commitments to our retirement systems. over the past several years, we

have taken steps to reduce the corporate net income tax and to phase out the sales tax on food as well as the business franchise tax. these tax changes provide refor our taxpayers while making our state more competitive for business. while we can be very proud of these accomplishments, we cannot rest on our laurels. we think the future with exploding medicaid expenses, increasing enrollment, medical cost inflation, declining lottery revenues and uncertain economic times, we will meet these challenges with the same pragmatic approach that we have applied over the past 25 years as we have grown from a state on the brink of bankruptcy to become a beacon of fiscal health in a nation where shortfalls have been the norm. we changed our mindset and our spending practices to accomplish fiscal stability, and it has made all the difference in the world. while i am pleased with this

success, we have one more large, outstanding obligation that we must address for the future of our state. other postemployment benefits, or opeb. we knew we had some hard choices to make, and we made them. along with that commitment to act responsibly, just last month the board took a monumental step forward or to cut our opeb liability in half. this was a significant effort led by a host of groups including several unions, and i want to thank them for stepping up to the plate and helping to solve this issue. today opeb is the last unfunded liability we have to face, and i will provide specific legislation this session to eliminate it once and for all. [applause]

with opeb under control, west virginia will have the ability to reach the upper echelons of financial strength and stability. this is what business investors want to see; a state that can stand on its own financially. west virginia has proven it can stand on it own, and recent investments have demonstrated that west virginia is a state where businesses want to invest and create jobs. more jobs and lower taxes, ladies and gentlemen, it's not just a slogan, a strategy. together we are making it happen in west virginia. we will not only celebrate our accomplishments, we will reshape our future. we will build a new west virginia where schools prepare children for future employment, our communities are drug-free, good jobs are plentiful, and our families can stay and prosper in west virginia. help me make this happen.

together we can make a difference. together we can make west virginia all it can be. now is the time. thank you, god bless you, god bless america, and god bless the great state of west virginia. thank you. [applause] >> house minority leader nancy pelosi will sit down with politico correspondent mike allen today. they'll discuss the 2012 congressional session and this year's elections. live coverage gets under way at 8:25 a.m. eastern. and after that a forum on national security. we'll hear from homeland security secretary janet napolitano along with former national security adviser,

retired general james jones and former acting cia director john mcglock lin. that's live from the aspen institute at 9:30 eastern. >> from topeka, kansas, republican governor sam brownback delivered his second state of the state address last week. he talked about overhauling the state tax system and creating fair and funded pension system. prior to this post, governor brownback served in the u.s. senate from 1996 to 2011. his speech runs about 25 the minutes. [cheers and applause]

[applause] [applause] >> governor, welcome. [applause]

>> mr. speaker, mr. president, legislators, justices of the kansas supreme court, my wonderful wife mary has joined us, my fellow kansans, welcome to the first day of winter. [laughter] yeah. this is pretty amazing outside. good evening. glad to have you back in town. our family has just experienced its first wedding with our oldest daughter abby marrying eric, and this is an exciting -- thank you. [applause] it was exciting, it was emotional, and it was very expensive. [laughter] so i need to get back to work, and it's great to see you and being able to get back to work with you. let me start off by saying that i am bullish on kansas.

[applause] and as i go through some of the things tonight, you're going to see why. we're a state in transition from a high-tax state to a low-tax state. [applause] we're a state struggling to pay our day-to-day bills to a state with a healthy bank account. [applause] from issuing more bonds and borrowing from our kids to paying down our debt. [applause] we're transitioning from losing private sector jobs to growing our private sector work force, from an unsound pension system to an honest, defined contribution system. from a school finance system trapped in litigation to a

simpler system focused on getting dollars out of the courtroom and into the classroom. [applause] we are transitioning from a medicaid system lurching between cutting providers, patients or both to one that gets better results for our most vulnerable kansans. from a modest wind energy investment to a top five states for projects under construction. from a waste, use it or lose it water doctrine state to preserving our most precious natural resource, and that's fresh water. this state in transition will look less to what washington can do for kansas and more to what we can do for ourselves. [applause]

now, that ice a lot to accomplish -- that's a lot to accomplish. can we get it done? of course we can. a year ago we met here facing two really enormous challenges; a stagnant economy with fewer kansans employed and a big budget deficit. now, many states across the country were struggling, but in 2010 kansas ranked among the worst in private sector job creation. but working together, we acted. and here are the results. we overhauled our state's economic development system, enacted modest tax relief and sent word around the world that kansas was open for business. and since january of 2011 kansas has added more than 11,000 net private sector jobs in one year. [applause]

on the budget last year we faced a $500 million deficit, but we didn't raise taxes. instead, we cut spending because cleary the era of ever -- clearly, the era of ever-expanding government had to come to an end. in fact, for the first time in 40 years the state's budget went down from one year to the next. by applying these fiscally-conservative principles you, the legislature, turned a $500 million deficit into a more than $100 million surplus-ending balance, and you did it in the one year. congratulations. [applause] the kansas legislature got its job done on time and under budget. thank you for doing that. now, those are the facts, and it's why now kansas is considered one of the ten best

managed states in america. and it is also for these reasons, mr. speaker and mr. president, that i can report to you that the state of our state is strong and getting stronger. [applause] >> now, last session the legislature gave our rural communities a new tool to help them reverse their population loss, and they have embraced the rural opportunity zone program offering no income tax and buying down of student loans to new or returning residents. joining us tonight is benjamin anderson, he's the ceo of the ashland health center. benjamin, if you'd stand up, i would appreciate it.

his hospital, hike many rural hospitals -- like many rural hospitals, has struggled to attract professionals. since the rural opportunity zone has gone into effect, he's recruited, and benjamin is planning to recruit a dentist, a physical therapist and two more nurses, and they have people calling them. that's the kind of population reversal we need to see taking place in our rural counties. congratulations. [applause] and i would presume you'd tell me, benjamin, anybody who wants to move to ashland, you'd be happy to have them there and take care of them at the hospital. still, the economy remains one of our most pressing issues. and where there certainly are factors that a tate cannot control when it comes to its economy, taxes are one area that

we do control. and when it comes to taxes, we have some of the highest in the region. now, this hurts our economic growth and our job creation. to address this, i am propose ago major step in overhauling our state tax code to make it fairer, flatter and simpler. now, my tax plan will lower individual income tax rates for all kansans. it brings the highest tax rates down from 6.45% to 4.9%, the second lowest in the region. and lowers the bottom tax bracket to 3%. i -- my plan also eliminates individual state income taxes on most small business income. as we modernize our tax code and lower everyone's rates, it is also time to level the playing field and simplify state taxes by eliminating tax credits, deductions and exemptions while expanding assistance to low income kansans through programs that are more effective and more accountable.

i firmly believe that these reforms will set the stage for strong economic growth in kansas and will put more money into the pockets of kansas families and businesses. that's something we have to do. [applause] we've got to grow. we simply have to grow. and with this growth, this will allow us to further reduce tax rates and increase our competitiveness even further. people will move to kansas instead of leaving our state. and with that in mind, i ask the legislature to limit further growth in government expendtures to no more than 2% a year and devote all additional revenues to reductions of state tax rates to make us more competitive. [applause]

this will get us ever closer to the pro-growth states with no state income taxes which are among the country's strongest economic performers. it also will enable us to keep the lid or state sales taxes and property tax rates by providing robust economic growth. let's put our lost decade where we lost private sector jobs last decade in the rearview mirror and speed ahead, at 75 miles an hour -- [laughter] to make this decade the decade of and job -- of growth and job creation. [applause] now, on the budget when i took

office last year, the state had just ended the last fiscal year with only $876 in the bank account -- excuse me, $876.05. i immediately instituted a policy of prioritizing expenditures and studying our structural problems. this process required some difficult choices. last year when i addressed this body, i said that any fundamental solution to the state's budget problems must include reforming; taxes, medicaid, our pension system and school finance. we also had to face the fact of steep and continuous decline in federal money coming to kansas. that's a new reality. in the last year, working with a committed group of cabinet secretaries and this legislature, we began implementing these needed reforms. and today i'm pleased to present the results of this process. my proposed fiscal year 2013

budget provides for an ending balance of $465 million, exceeding the 7.5% statutory requirement, and that for the first time in years. [applause] this budget fully funds or increases funding for essential services while holding the state general fund expenditures below last year's levels. this budget begins to address the long-term structural issues that place this state in years of fiscal peril. now, concerning our debt this budget also addresses the state's ever-increasing debt that has created a generational burden sent to our sons, daughters and grandchildren.

state government is about to experience an influx of money and the expanded gaming fund with the opening of facilities in sumner county. to reduce the burden we leave to our children and grandchildren, we should use this increased revenue for its most important statutory purpose, and that is to pay down our debt. [applause] >> it is what we should do with it, and i hope you do that. now, on capers, for decades state government has shifted the burden of providing state employees' retirement costs to future legislatures. it's always been kicking the can down the road. as a result, capers has a shortfall of more than $8 billion. a huge hole.

and the first rule of getting out of any hole is to stop digging. the capers commission produced solid recommendations which will insure that state government meets its obligations to retirees. those who are currently receiving benefits or vested in the current system will be fully protected. [applause] and the state will increase its contribution to capers and require more from workers to pay those benefits. but for all new employees and those not currently vested, we can and should transition to a defined contribution system like most private sector organizations all across america. [applause] now, the reason's simple. it guarantees that the state stays current in paying its

bills and gives people the flexibility to move freely in and out of state employment instead of being trapped in many our retirement system. state employees do important work, and they deserve a fair and funded pension system. it's time we do these reforms put forward by the capers commission that does just that. [applause] now on medicaid. we are committed to a strong, effective safety net for our most vulnerable kansans. medicaid spending has skyrocketed in recent years, and it continues to place stress on funding for education, for public safety and other essential services. with additional funding cuts expected from the federal government, kansas must transform medicaid into a system that improves services while managing costs. now, many states have made the choice of either kicking people off of medicaid or paying doctors and other providers

less. neither of these choices provides better outcomes. we have a better solution. [applause] the lieutenant governor, dr. jeff collier, and our cabinet team with input from legislators and more than 1800 stakeholders have produced a measured, innovative, compassionate proposal. unlike the current one size fits all system, we'll off all kansans a choice of plans that best fits their needs. kansans with long-term disabilities will have an integrated care coordinator. those with developmental disabilities can keep their case manager be they cheese -- if they choose. many disabled kansans want to work but are stuck in government programs that provide neither respect, nor independence. now, i propose kansas be a national leader in the helping the disabled find meaningful jobs. all kansans should have the opportunity to pursue their dreams with jobs providing an offramp for medicaid, we will be

able to help those in need of services and reduce our waiting list. for years medicaid was spread among several cabinet agencies in our sate. this year we will continue to make government smaller and better focused by consolidating multiple agencies into a restructured department of aging and disabilities services. by running government more efficiently and effectively, we can save money and provide better services. now on school finance, it is clear that the people of kansas know what's best for their kids. parents know better than elected officials, parents know better than federal bureaucrats, and parents know better than unelected judges. it is past time to get education dollars out of the courtroom and into the classroom. [applause]

>> it is also time to teal with this problem. the plan i put forward, as many of you have already been briefed on and know, straightforward. no district gets less money, and every ticket will get more -- every district will get more flexibility. no district will see it state aid go down. i'm proposing adding $45 million in state funding for our poorest school districts. i also propose to give local school districts more flexibility to spend that money in the way they want because the government closest to the people works best. and local districts should be allowed to invest in the excellence of their schools to the extent their voters believe it's appropriate. as many districts make those investments, my plan establishes a mechanism which will protect poorer districts so that they,

too, can benefit. now, some people ask me why reform the school finance formula now? can't we just kick this can down the road some more, for another year? the fact is the lawsuit that's pending now is scheduled for trial this summer. and the people elected us, not the courts, to run our schools. it is time to do the new school finance formula and to do it in this legislative session. [applause] >> now, this formula hasn't been adjusted in 20 years. the new school finance formula should be sunsetted after four years. thus, ending the cycle of litigation and beginning a cycle of legislation. that's the way this should be

handled. i hope you do that. now, one of the honors of my professional life, or the honor really of my professional life has been to serve the people of kansas. the people of kansas has allowed me to serve as secretary of agriculture, as congressman, as senator and now as governorment one of the regrets i have is that more has not been done to preserve our natural resources of water, marley the ogallala -- particularly the ogallala aquifer. almost since statehood, we've told kansans with water rights that they must use it or lose it. this has encouraged the overuse of water. i propose to repeal the use it or lose it doctrine of our water law. it is way past time we move from a development policy with our water to a conservation ethic. we have no future without water. it's altogether fitting and proper --

[applause] it is altogether fitting and proper that we would do so, for our government is not only a compact among those who are living, but a covenant with those who are yet to be. our great state is 150 years old. many have come before us, and, god willing, many will come after us. i'd like to recognize the first kansans, our native american leaders who are here with us tonight. and if they would, please, come forward and stand. from the iowa tribe, chairman tim rod. from the kickapoo tribe -- [applause]

>> chairman steve kudu, and also joining us -- [applause] and i've got a special one for you. also joining us tonight is guy monroe. fy, please stand, if you would. guy is the chairman of the caw nation, also known as the kansa indians after whom our state, kansas, is named. and, of course, this building is crowned with a statue of a kansa indian shooting for the stars. thank you, guy, for joining us. [applause]

this last year we also celebrated some of our most notable kansans. we had the kansans of the sesquicentennial, the top 25, and it was an inspirational time. one of the most inspirational was clyde cessna, the man responsible as much as anyone for making wichita the air capital of the world. it's easy to overlook the fact that even for them not every day was a successful day. clyde cessna survived and 13 crashes before he achieved a successful aircraft design. [laughter] now, i might have quit after four or five, but he found 13 ways the plane wouldn't fly before he decided he found the right one where it would fly. now, last week kansas received some rough aviation news. we suffered a setback. but even in the face of that, we

see hope. yesterday i was in wichita to announce an agreement with bombard learjet, and we aren't done. there will be more. [applause] because like clyde cessna, we're not going to quit. we're going to keep trying, keep innovating, keep growing. we're going to keep our faith in a loving god and a promising future, working together and praying together for a better k. now -- kansas. now, i began tonight talking about my daughter's wedding, what a wonderful day. seeing your child get married which some of you have seen and been through this inspires a few tears and me motions. for one, it makes you feel very old. [laughter] or shall i say really, more

mature? [laughter] but it also reminds us of why we're here, that our season is short, the needs are great, and the people finish particularly our children -- are depending on us. now, you as legislators, you sacrifice a great deal to be here, and i appreciate that, and the people of kansas appreciate that. you leave your homes, your businesses, your communities to come here and to serve the people of kansas. i thank you for what you do to make this a better state. i really do, and i say that on behalf of the people of kansas. because i know you don't always get people saying thank you or always appreciative of what you do even though every one of you no matter what political affiliation or what stripe is seeking to do the best for the people of the state of kansas. and i appreciate you, and the people appreciate you. and i can say together we will succeed for making this state and into making this state a better place for we must. thank you, god bless you all,

and may god continue to bless the people of the state of kansas. [applause] good night. [applause] [cheers and applause] >> leading up to saturday's south carolina primary, c-span's road to the white house coverage takes you live to the candidate events all this week. >> we need to eliminate these entitlement programs. we need to cap them, cut them, cap them, send them back to the states, remove the federal oversight and let the states have the flexibility to deliver these programs. >> we have brought to the forefront, other have tokenly talked about it, and they do nothing about it. but right now it is this liberty movement which is seen as a patriotic movement, an individual liberty movement that is saying to the country and to the world we have had enough of sending our kids and our money around the world to be the policemen of the world. it's the time to bring them

home! [cheers and applause] >> and as candidates get their message out, meeting voters -- >> who's this here? [inaudible conversations] >> we're so happy. >> thank you, thank you. [inaudible conversations] >> i was undecided, right now you have my vote. >> thank you. i appreciate that. >> absolutely not. >> what? >> the endorsements in texas? >> we feel very good about that. we feel like the conservatives are coalescing around the campaign, and that's going to be good not just in south carolina, but as we go forward. >> and find more from the campaign trail at c-span.org/campaign 2012. the second session of the 112th congress gets underway this afternoon. this morning house minority leader nancy pelosi sits down to talk about the congressional agenda and the news of the day. she'll be interviewed by mitt coe chief -- politico chief white house correspondent mike allen. that's live from here in washington, expected to start in just a couple of moments. very quickly, here are some of

the other live events we have coming up today here on c-span2. at 9:30 after this event, we will get remarks from homeland security secretary janet napolitano and a number of others on her department's work to strengthen travel and trade and combat global terror threats. that's live here at 9:30 eastern. the senate is holding a brief pro forma session, that'll start at 10:15 eastern, as always, live coverage of the senate here on c-span2. and following that, the u.s. conference of mayors gets their winter meeting under way with that focus on job creation and the future of the u.s. work force. that is live starting at noon eastern here on c-span2. [inaudible conversations]

[inaudible conversations] [inaudible conversations]

[inaudible conversations] [inaudible conversations]

>> hi, folks. if -- we're going to get started in two minutes, so if you could just turn down the ringers on your cell phones, and if you have a seat next to you, would you just raise your hand? we will get more -- there's a couple seats over here. anyone still standing? awesome. we're going to get started shortly. [inaudible conversations] [inaudible conversations]

[inaudible conversations] >> again, starting shortly, politico white house correspondent mike allen will be speaking with minority leader nancy pelosi about the political

agenda. it'll get underway here in a moment on c-span2. very quickly before this gets underway, we continue our live road to the white house coverage this morning on c-span3 as rick perry will host a town hall meeting in murrells inlet, south carolina, we'll be joined by his son. 9:30 eastern on our companion network, c-span3. more road to the white house coverage this afternoon on cell phone sparks starting at -- on c-span starting at 1:30. newt gingrich holding a town hall in west columbia at phillips market there, one of seven events for the former house speaker. live coverage starting at 1:30 eastern on c-span. [inaudible conversations]

[inaudible conversations] [inaudible conversations]

[inaudible conversations] [inaudible conversations] >> again, waiting for house minority leader nancy pelosi to come and join us here at the playbook breakfast at the newseum this morning. she'll be interviewed by mike allen of politico. very quickly, a couple of other

items we have coming up today on c-span2. starting at 9:30, remarks from homeland security secretary janet napolitano, and she'll discuss her department's work combating global terror threats, that's live here right after this event, actually starting around 9:30 eastern. and the u.s. conference of mayors gets their winter meeting underway, they'll be focusing on job creation and the future of the u.s. work force. that starts live at noon eastern here on c-span2. and back now live to the newseum. >> morning, i'm mike allen, welcome to the first playbook breakfast of 2012. we're excited to be here with leader pelosi in just a minute, and we're excited for your playbooks. i think bill larson gets the traveled furthest award for coming from delaware. thank you for coming out in the rain and braving fire alarms and all that. i'd like to thank bank of america for their continued sponsorship of this partnership.

these breakfasts are an important forum for issues that matter most in washington, and bank of america has continued to sponsor these. we're grateful for that. i'd also like to give a shout out to, i think that we have the in the audience some alumni of the bank of america's urban alliance program. do we have some -- good morning, welcome, thank you very much for being here. welcome to you out in live stream land if you're following us on twitter, hash tag playbook breakfast. and here at playbook we read the papers together every day. a little news in the charlotte on serber, looking ahead at a sneak peek at some news for today. on the final night of the democratic national convention, president obama is going to deliver his acceptance speech at bank of america stadium. convention officials are going to announce this today, and it's part of an effort to mobilize voters in california, this is the charlotte observer, and

democratic sources said there are going to be other changes announced today, so that's something you'll see popping on politico today and that you'll see in playbook tomorrow. also politico is celebrating it fifth birthday coming up a week from now, and as part of that for the first time today the print edition of politico, which you all get to see and hold but a lot of people around the country don't know exists, today for the first time that's circulating every day in new york city, 4,000 copies every day in manhattan, and rob and the playbooker have spotted "the politico" box on park avenue, and sent in a picture of that, so that's in playbook too. i appreciate your being here, and now i'd love to welcome leader pelosi. [applause] >> good morning. >> welcome back to d.c., i think. this is your first time back this year, right? >> no. we were here last week.

>> okay. >> remember that when we were on the floor of the house seeking recognition? >> then you did a little texas trip in between, right? >> yes. i was in el paso on friday, houston on saturday, austin on sunday and came here yesterday. >> not even in my native state, california. >> oh, i started there on friday morning. >> okay. what a schedule. now, before we get down to business here, politico has a hardball for you. he says that the giants/san francisco 49ers game, he wants to bet you a box of chocolates versus the equivalent amount -- and i'll leave the this to your expression -- of haggen das ice cream which is from the bronx. i understand you're quite a chocolate lover, so are you willing to take that on? >> absolutely. sounds like a no-lose situation to me. chocolate one way or the other. but he will definitely, i will

definitely enjoy that haggen das chocolate. [laughter] >> what's your outlook or your spread for giants/49ers? >> well, they said three points this morning, which was interesting. i'm not so much into the spread, i'm into the winning. [laughter] >> plus, you're in d.c. too. >> well, it is -- i had a lot going on. with all that we had with martin luther king day and the travel and the rest, my hometown, of course, is san francisco, my native city is baltimore, so baltimore playing houston, my grandchildren live in houston, my other grandchildrens' father's from colorado, so they were for denver, so we couldn't lose. favorite, of course, was getting ready for the mardi gras for the statements, but we try -- saints, but we tried to treat them very well. so it was a lot of good news one

way or another no matter who won. it was great, great football, don't you think, all weekend? wasn't it? how about the 49er team? did you not -- did you see the last quarter of the game? if you haven't seen it, they were taking it down to minutes. it was something quite remarkable. talking sports. when i grew up in baltimore, we had johnny you knew it is a and two touchdowns in the last two minutes, that was par for the course. [laughter] my children growing up in san francisco, joe montana, two scores in the last two minutes, piece of cake. [laughter] so this victory was in the tradition of what we expected. >> all right, down to business. we'ral -- >> down to business? this is business. [laughter] >> with welcome to our c-span viewers. we thank c-span for carrying playbook breakfast live. madam speaker, you said you support the message of occupy.

they're coming to you, they say they're occupying congress today, they have a permit to be down on the mall, and i'm wondering if you think they have the right targets. should they be protesting government? >> what i said at the time was that their message, that the status quo is unacceptable, is a message that i think is an important one for our country. i think if i had any connection to them what i would encourage them to do is something we're going to do first thing when we take back the house is to -- >> when that, by the way? >> that's going to be in ten months. [laughter] >> how certain are you? >> well, we'll get to that. [laughter] but it is, it is the most important message i think that they have is the status quo is unacceptable. and a critical part of the status quo is how campaigns are financed. it's a problem that has been exacerbated by the i don't like to say citizens united, it

sounds too good a name, but the miserable decision by the supreme court to allow in i and all funding, secret, large, special interest contributions into campaigns, ridiculous. so what we're going to do is right now we want -- and i hope they would share that view -- we want disclosed where is this money coming from? when we win, amend first order of business, amend -- oh, no, excuse me, reform. that's what we can do by law. disclose, reform the system and then try to amend the constitution to change the ridiculous notion of that, any and all kinds of money can weigh into campaigns. this has created such cynicism in the public and justifiably so. >> madam leader, we knew citizens united was going to be big, but have super pacs had

more of an effect on the 2012 campaign than you've expected? >> 2012? well, 2010 was what -- >> well, let's -- >> no, no, at that point there was no dischose your. and the minute -- it was interesting because the court decision was earlier, but the change had not set in until the disclosed bill lost in the senate. once those major special interests knew that they could contribute endlessly, secretly without anybody knowing where the money came from, then the floodgates opened. may of last year not many people -- easter, say pass overof last year, not many people thought we would lose the house. by the time the bill failed in the senate, it was all over because it was going to be endless, endless money, coming up on 9.5% unemployment. so we tried to control the damage. but that's where they had, you know, where the element of

surprise was that was big. hopefully, this time the bright light of scrutiny and press attention and the rest is on it. the mix doesn't like it at -- the public doesn't like it at all. they've spent -- my understanding is $50 million already in the republican presidential race and have had an impact. >> we have this remarkable situation where we have two comedians, jon stewart and stephen colbert, who are educating a huge swath of young people about the intricacies of campaign finance. what do you think of the fact they've seized on the super pacs is and are talking about them each night? >> i think it's great. i think it's really great. i'm not sure -- it's very humorous, and i want to be sure that the message is clear that this is, this is really making a complete difference in our political system. you know, we've tried over time, and this is what i think the legacy of the democrats has to be when we win this next

election, and that is to have new politics, free advertising, new and free are the two best words. new politics free of the special interest so that we're not talking about just big money piled into these campaigns. we have tried that over time to have a check-off citizen so that the citizen participation in the funding of campaigns would work. we have it for the presidential, it's sort of at risk with the republicans having a -- >> now, special interests in politics are, did not just occur with republicans or with citizens united. >> well, we made progress with mccain-feingold which was a bipartisan legislation to reduce the amount of big money in politics. it was progress. some people resisted it, didn't hike the fact that party -- didn't like the fact that

parties could no longer play their role. but what the court did is something so drastic, it rolled back progress for 100 years. so this is something quite different. so disclose what the money is. that goes a long way. reform the system again and then amend the constitution. that's a longer so that the citizens united decision cannot stand. then we'll see what the public appetite is to go that far. >> now, do you think the colbert/stewart attention could help change this? you've certainly read about it, have you seen it? in oh, i know it quite well. >> okay. >> yeah. yeah, and i think that's really important and -- >> how is it important? >> well, because any -- most people don't, you know, we sit in this room, we understand what's going on with this, that and the other thing. generally, and the reason these

pacs have succeeded is most people don't know that they're there and how they operate. they just see the results of it. so if they can pull back the shade and show them the mechanics of what this is, that anybody can give any endless money to say anything without any, by the way, there's no regard for fact or truth or anything like that, say anything they want about a candidate, it would deter you from running if you were thinking about doing such a thing if you were going to be at the mercy of. so, again, what i get the biggest response to as i was in these three cities this weekend and silicon valley on thursday, you know, just all over, when you talk about disclose and reform, people are very ready for it. >> okay. now just to cross the t on occupy, how do you feel about occupy d.c. saying they're going to occupy congress? >> well, you know, i'm a big

believer in the first amendment and people having the opportunity -- >> so you're not worried about chaos? >> well, i hope that it will be done in a way that protects the rights and the people who are involved, but i do think that it's important to note what they have said, and that is status quo is not acceptable. >> and you agree -- >> what i would say, i would have wedded this directly to the role of money in politics. >> they seem to still be looking for a message. they could still do that. you think that that's a way the movement could have durability or could have impact? >> my understanding, i don't -- we're not -- as opposed to the tea party which was practically a wholly-owned subsidiary of the republican party, we don't really have much of a connection with the occupy. in fact, they probably have some sentiments that overlap between the two. and one of the big concerns that

people have are the tax code and it unfairness and economic policy that calcifies the unfairness in our system's disparity of income, the disparity of ownership, of equity, of people having a real chance. and many people, i understand, consider the tax code a place where big money, special interest money weighs in repeatedly to the disadvantage of main street to the advantage of wall street. >> as speaker, you were the highest-ranking woman in american history. no one has been higher. in june i believe you'll be celebrating your 25th an anniversary in congress, and you're going to get chocolate for it, i guess. [laughter] >> i certainly hope so. >> and yet you have a president, the head of your party, who could be running against congress. what do you make of that in.

>> i'm all for it. [laughter] i am all for it. the president said he's going to -- my understanding is the president, he hasn't told me exactly that, but i've seen that he's running against the do-nothing congress, and he really should. this is a congress that has done such a disservice to our country. and you know, you have to give them credit, bless their hearts, they do what they believe, these republicans. they do what they believe. and they do not believe in government that has any role in clean air, clean water, food safety, public safety, public health, public education, medicare, medicaid, social -- >> republican education, george w. bush did the no child left behind act. >> he did that, but he did not fund it. i'll never forget the first day the secretary came to our labor hhs committee, and the commitment was mandate and money, and first day we said, well, where's the request in the

budget? he said we don't need it. and that was a setback. but president bush had the idea that no child left behind would be a good idea. part of the reason it hasn't succeeded is there was no resources to match the federal mandate. but my colleagues, you know what they told me? one of the reasons we didn't have to worry about defaulting on the government is there was other ways we could reduce the deficit. one was to shut down the department of education. now, this is a member of congress telling me this. >> who was this? >> i can't tell you. [laughter] he was proud of it. i'll clue you in, but he told me that what we should do to save money was the following: shut down the department of education, turn the building into 435 condominiums that we could all live there together -- [laughter] and slash congressional pay, and we'd go a long way to reducing

the deficit. whatever -- >> quite a cafeteria. >> well, it would be -- well, whatever. [laughter] but i heard on the debate last night a very vigorous shutting down of the the president of education. >> so you watched -- >> i saw some of it. >> okay. this was the fox news debate from myrtle beach, south carolina. what did you make of your opposition? >> well, here's what i saw because i haven't had a chance to watch many of the debates. and i haven't taken the opportunity, frankly. but i did see between commercials some of it. and what i saw -- >> oh, wait, you were watching something else and you watched the debate during commercials? >> yeah. >> what were you watching? >> i don't even know. i mean, i had the tv on. i don't really watch much. i am espn fan. sports. because it's numbers.

it's less of anybody's opinion on anything, it's stats. what happened in the game. so i'm a big espn, where i go for my television distraction. but here's the thing. here's my conclusion. after last night we had a contest without a winner. the so-called right wing of the republican party described as e evangelical and others are not supporting romney, at least not yet. because they don't think he's going to win. in other words, if they thought he was going to win, you could make the case he can beat obama. >> they don't think he's going to win the mom fashion or win -- nomination or win in november? >> they don't think he's going to win in november. so they're like why should we compromise who we are? let's be for who we want to be and get ready for four years from now, four years from now

when it's a clean slate, no incumbent, and we can start to get ready building -- >> that's very interesting. so you think republicans, the republican right is intentionally digging in, assuming a loss, staking out their ground for 2016? >> well, i know manager about the dynamic of a presidential election. [laughter] and we see, shall we say, dissatisfaction in all corners of parties. but in this case i think if they, you know, the argument, well, we should be for romney because he's going to win, i don't think they think he's going to win. and then maybe they'd be for him because this is, this president when he gets out there, makes his case, takes his them to the american people, this crowd that they have there is -- it's not exactly what you would call the first string of the republican party.

i mean, i think they have, can do better than that. >> who? >> i would never say. [laughter] >> all right. >> it's hard to say, but nonetheless, you know, you've got the third tier and the second tier is younger. if you know what i mean, in other words -- so anyway, here's the point just to bottom line it. if far right thought that romney could win, they might be more enthusiastic about him, but they don't share -- they question what he stands for, and they don't think he's going to win, so, you know, what's the sell? i'm not sure he knows what he stands for, and that makes it harder too. because that doesn't instill confidence as to where he might be on some issues. >> madam leader, you probably know governor romney. what do you make of him? >> i really don't know him. i don't know who knows him. does he know him? [laughter] because i heard him say things last night which were really

either uninformed or just plain wrong. for example, he said he would absolutely never negotiate with the taliban. question was, one of your senior foreign policy advisers says this is the opponent, this is who you negotiate with. and he said absolutely, positively not. not making any distinction among taliban who are ready to reconcile and reintegrate and what ron paul did, say al-qaeda or other dangerous taliban -- >> this is really interesting. in politico this morning, in takeaways from the debate, said this is going to be a big issue in the fall. she pointed out that governor romney took a shot at vice president biden, but this is an issue we're going to see a lot about. so would mitt romney as a nominee make it easier for democrats to take the house? >> almost --

>> how would that affect your outlook? >> let me just say that on the house we do it one district at a time. it's not we want, we feel very proud of having president obama at the top of the ticket fighting against a do-nothing congress. the president, you want to talk politics? are we allowed to do that here in this building? [laughter] we have to be very careful in the capitol -- >> feel free. [laughter] >> here's the thing. the in states -- in states where we expect to do very well, california, illinois, new york, the president won't really be spending great deal of resources for get out the vote and tv because he's going to win those states. so we have to be on our own in the individual districts. if you want to win the state statewide, you go to the inner city. but our races are beyond the

inner city. so we're, we understand that dynamic. i was a state chair in california, i know if you want to win the state, you do one thing. if you want to win the legislature, you do another. so anyway, we'll be big in those states hopefully -- not hopefully, knowing that the president will have an inspirational message that works in those states. so we just have to get out. we have great candidates, just get out the vote. texas, on the other hand, he won't be spending money for the opposite reason. but we have great opportunity in texas, and, of course, we're waiting for the supreme court decision. but we will have opportunity to pick up seats. florida is the state where we have a three-way commonality of interest. we have presidential, we have the senate, united states senate seat, and we can pick up seats in florida. in those five states, we come very close to picking up most of what we need -- not all, we need more