imposed on the american people and discuss all of the new regulations that have not yet come out. but they're working on it. some of these regulations they are holding off until after the elections so the people would not know the cost of the regulations, how many jobs are going to to be lost. first thing we need to remember the utility mact. mact means maximum achievable control technology. in other words, what technology has told us we can do to try to control these -- these releases. and so utility mact was -- was the first one that they successfully passed. in this case, the e.p.a. established a standard that was impossible for utilities to actually meet. this regulation is inappropriate under the clean air act and it's having a $100 billion annual impact on the economy and destroying 1.65 million jobs. they've already done it. they were able to pass that right down party lines, i might

add. the e.p.a. has also finalized similar regulations for industrial boilers and cmac kilns. together those regulations are having an impact of more than $63 billion on the economy. by the way, no one's refuted these figures. $63 billion on the economy and they have destroyed 800,000 jobs and may result in the shutdown of 18 cement plants around the country. in another section of the law, the e.p.a. put a rule together knowing it would increase the cost of gasoline. the rule is known as the tier 3 rule. and it regulates the amount of sulfur that can be in gasoline when it leaves the refinery. tier 2 standards were put into place back in the early 2000's and that resulted in a 90% decline in the sulfur content of gasoline by 2010. that's already behind us. that's been done. and it had a measurable impact on the environment. the need for a tier 3 standard

is not articulated very well. in fact, e.p.a. did not have any unique scientific data to support the key benefits of this rule and the e.p.a. ignored the fact that it would actually increase greenhouse gas emissions. so it's going to increase greenhouse gas emissions but the rule they're still putting forth. and it would be counterproductive to their other policies. the e.p.a. stated blatantly th that -- and this is a quote -- "this rule" -- we're talking about the tier 3 rule -- "this rule will increase the cost of gasoline." and those are actually their quotes behind me. furthermore, the e.p.a. recently finalized a rule called the 316-b water rule. this rule regulates the cooling water systems that are used by power plants and other major industrial facilities to prevent their operations from overheating. so they use water. the e.p.a. and the fish and

wildlife service were worried about the impact these facilities are having on fish and so they put out a -- a rule to help. in the rule making, e.p.a. again states that, as it stated back up here, the final rule will increase electricity costs. worse is the fact that e.p.a. could not even fudge its numbers enough to present a positive cost-benefit ratio. in its final rule, the stated costs are $300 million, which is about 10 times the estimated benefits of the rule, which are only $28.6 million. this violates the president's own executive order 13563 which states that agencies must -- quote -- "propose or adopt a regulation only upon a reasonable determination that its benefits justify its costs." which is another problem we have with this administration. they'll have rules, they'll ha have -- they'll have laws and they violate these laws, just like when he turned loose the --

the five terrorists from gitmo. and we have passed -- knowing that he was going to try to get rid of people in gitmo, he took the five that were the very worst, and we had passed a law saying that he can't do that until he gives the senate armed services committee 30 days' notice and gives us a chance to respond and stop him from doing it. he totally ignored it, just like he ignored these regulations. and worse yet, this rule has no human health benefits. its only beneficiaries are fish. so e.p.a. is putting out a rule that will increase electricity costs, including for those who live on fixed incomes, all for the sake of saving a few fish. another rule e.p.a. has done since the -- since president obama began his administration is the regional haze rule. these regulations were established to improve the visibility of national parks in states where -- and states were instructed to develop their own plans known as state

implementation plans in order to comply. oklahoma did this. my state of oklahoma did this but the e.p.a. overturned it because of a technicality associated with the economic analysis. when e.p.a. did this, it instituted a federal implementation plan and in this case it cost over a billion dollars to execute or nearly 10 times the amount of the state-based plan that had been developed cooperatively with our utility companies. this is the kind of uncooperative relationship we've come to expect when working with the e.p.a. beyond the greenhouse gas regulations, the one receiving the most attention is the waters of the -- the waters of the united states rule. nearly every group in oklahoma is talking about this rule because it would extend the power of the federal government over millions of new acres of land. i just got back -- last week i was in gyman, oklahoma, el reno,

oklahoma, boise city, oklahoma, is the further west large city out in the panhandle. it's kind of sands witched between oklahoma -- sandwiched between oklahoma, new mexico, kansas, and texas. and they're all in western oklahoma. this is an arid part of the country. they're in the third year of their drought right now but the new rule would declare much of this area as a federal waterway subject to the onerous federal regulations. this would impact every industry -- farming, ranching, oil and gas, construction, transportation -- everything. the rule confirms -- and this is interesting, because tom buchanan happens to be the president of the oklahoma farm bureau and he -- i asked him the question in kind of a town hall setting that we had not too long ago, i said, you know, what is the biggest problem that we have in agriculture in oklahoma? he said, the biggest problem has nothing to do with the farm bill. the biggest problem we're facing right now is the overregulation by the e.p.a., what they're doing with their endangered

species, what they're doing with containment of fuel on farms, what they're doing with the water rules that they have. and so he said that is the biggest problem. and i was with terry dietrich, he's the president of the american farmers and ranchers, and he agrees that the biggest problem that farmers in america are having right now is the overregulation of the e.p.a. e.p.a. says that it will work with industries to make sure it works for them but we know from experience that's not going to be possible and it's not going to happen. their goal is to take over, it's to control and leave no room for negotiation. another devastating regulation developed by the e.p.a. is the ozone nacs standard. nacs means national empty ient air quality standard. it was last set by the bush administration as 75 parts per billion. president obama has tried to lower this standard since they took over the white house.

in 2011, the president canceled e.p.a.'s plans to lower the ozone standard because it was going to hurt the -- his reelection chances. but now that he's excused that reelection, he's ready to start it up again. the e.p.a. staff and the clean water scientific advisory committee -- that's cwsac, a part of government -- recently recommended that the administrator propose to lower the naacs level to between 60 and 70 parts per billion. this chart shows how much of the nation would be out of attainment if the e.p.a. lowers the standard to 60 parts per billion. in oklahoma -- in oklahoma, all 77 countries would be out of attainment. what does that mean? it means when you -- i was mayor of the city of tulsa once when it was out of attainment. we were not able to get -- have any -- to increase populations in many of our businesses. it essentially means that the e.p.a. will have to issue a regulatory permit for any business expansion plans that

could increase emission levels. it would make business expansion enormously expensive and would dramatically increase the power of the e.p.a. now, all told, this rule would put nearly 94% of the counties' population in -- out of attainment. that's 94% of the counties in the united states of america. and the zones would cede our economic superiority to the likes of china and india. zooming it to more industry-focused regulations, the e.p.a. has been the main culprit in the president's war on fossil fuels. hydraulic fracking and horizontal drilling have opened up dramatically new -- dramatic new oil and natural gas resources in this country, and no one thought we'd ever be able to be, you know, profitably extrablght these. now these -- extract these. now these -- through these -- these and other new efforts that they have developed in the -- by the way, hydraulic fracturing

was actually developed in my state of oklahoma, in duncan, oklahoma, in 1948. so this is something that is going on. but in spite of this, they're trying to use hydraulic fracturing to stop the successful increases that we've been able to have in the wells. you know, we had a -- i remember asking lisa jackson -- lisa jackson was 9 e.p.a. director -- was the e.p.a. director, the first one, under barack obama. and i asked her the question, i said, you know, if we were to pass any of these -- do something with hydraulic fracturing, would -- would -- has there ever been a case, a documented case in the united states, that hydraulic fracturing is damaging to -- to ground water. and she said no, it's not. there's never been a -- the exact words she used was any proven case where the fracking process itself has affected

water. so if you eliminate this, it's not going to save anything. you're still not going to hav have -- because it's not creating any problem. and this doesn't come from me. it comes from the administrator of the e.p.a. appointed by president obama. now, regardless, the e.p.a. is moving full force to regulate hydraulic fracturing. you know, one point during the administration, there are a total of 13 different agencies working to do this. the bureau of land management is one of them. and it's my understanding that their regulations are being finalized and could cost producers as much as $100,000 per well. now, keep in mind, every time they talk about what it's going on to cost industry or -- going to cost industry or business, that is passed on to the public. the e.p.a. is also working to regulate methane emissions from across the oil and natural gas industry. whether it's the upstream producers during the drilling and the completion process, the midstream pipeline operators, or downstream retail distributors,

e.p.a. is convinced that the industry is willing -- willingly allowing their valuable product to seep into the atmosphere without any concern or awareness. e.p.a.'s methane strategy is part of the president's overall climate change action plan. the agency recently published white papers outlining its understanding of methane leaks in the industry. they were not very impressive. i recently wrote e.p.a. and the white house to express my concern with these papers. i was shocked that the papers seemed to lack any comprehensive understanding of the industry's operational practices. i was also disappointed the e.p.a. didn't consider the manyy regulatory hurdles in place which actually prevent producers from installing the technology and infrastructure that would reduce methane emissions. i'm hopeful that the e.p.a. would take my recommendations seriously before moving forward. so we have two problems.

i mean, right now we could be totally independent of any other country. all we have to do is do what every other country in the world does and that is exploit your own -- your own resources. and this president has made it possible for us to get into public lands and to get this done. and then, of course, you have the problem of the overregulation. so in all, the administration's regulatory agenda is intended to shut down the engine of america's economy. they've already shut down coal. now they're working on oil and natural gas. what they've done so far is just a preview. but the liberal environmentalists, the tom steyers, the bill mckiddons, the democracy alliance must all be frustrated by what's going on right now. temperatures are not going up, they're going down. nobody seems to care. no one has any desire to implement the policies they want. the polling is all showing to they've lost this battle. that's exactly why we're willing to spend up to -- they're

willing to spend between $600 million and $700 million on this year's elections to convince the american people to elect members who will support the president's regulations, which will shut down the economy. you know, one more thing and i'll -- and i'll wind up. but going back to the global warming thing. earlier i said that back in 2002 when we discussed the costs it would be between $300 billion and $400 billion as the largest tax increase in history, a permanent tax increase, i asked the question to lisa jackson again. she was the administrator of the e.p.a., appointed by barack obama. i said, if we were to pass any of these cap and trade regulations or bills or do it by regulation, would this have the result of lowering co2 emissions worldwide? and she said no. because this isn't where the problem is. so the problem is in china. it's in industry, it's in mexico, it's in other places.

in fact, you could use the argument that it would actually have the effect of increasing emissions because, as we chase away our base, it will -- the manufacturing base will go to countries like china and india, where they don't have any restrictions on emissions at all. so there we get the largest tax increase in the history -- in history and no reduction in co2. so with that, i think it's important, mr. president, to remind the people even though that era is almost gone, the people realize that that is not something that was very popular at one time, now the polls show people have caught on, but still you have to keep in mind what the president could not do through legislation he is now doing through regulations. and regulations as i pointed out is the greatest problem our economy is facing today. this is something we're going to have to change. with that i will yield the floor and suggest the absence of a quorum. a senator: mr. president? the presiding officer: the

senator from washington state. ms. cantwell: i rise to talk about the reauthorization of the export imimportant bank and the legislation we'll see on a continuing resolution and just voted on by the house of representatives. and while i'm happy that there's a c.r. continuing resolution that keeps our government open, i'm very distressed over the fact that the house is sending us a simple nine-month extension of the export-import bank to spire june 30 of next year. the reason that's frustrating to me and my colleagues over here is because this is a jobs issue, it's about our economy, and we've heard today at various venues throughout the capitol how people are actually losing jobs right now because of the uncertainty of the export-import bank. so i know that some of my colleagues in the house of representatives, republicans, are proud that they have helped to reauthorize the bank for nine months, but make no mistake

about it, this will cost us jobs in the united states of america during that time period. we had a press conference today, i was proud proud to be joined by senator kirk, senator graham and senator manchin and myself and various leaders in the energy industry, the nuclear energy institute, the combustion associates, itron, westinghouse and the company firm green to talk about how many energy jobs are dependent upon the export-import bank. you can see from this chart 46,000 u.s. energy jobs, and $7.7 billion in energy exports. just last year these transactions helped these energy jobs in the united states of america by putting investments in projects overseas, and that's why we want to see a long-term reauthorization of the export-import bank. while this uncertainty exists in

the continuing resolution, all you're going to do is to exclude u.s. companies from closing deals. that is because a credit agency is critical to u.s. companies actually being at the table. we heard from one firm today, firm green, that they were actually excluded from participating in getting a deal simply because the uncertainty of the ex-im bank, financing the deal, was not at the table and we lost out on an asian competitor. during these nine months uncertainty that's going to happen to more u.s. companies, they are going to lose out on these energy jobs that we're looking for overseas. now, i'm talking about things that are part of our energy strategy, everything from sub-saharan africa, power plants in africa, to various investments in the nuclear facilities.

a short-term nine-month extension doesn't provide a large enough window for companies to build a pipeline, to construct a wind turbine or develop a nuclear facility. so it will hurt us by slowing down on these energy projects, and just at the time when we're trying to fund the training of troops to combat isis, we're going to be creating uncertainty in places like saudi arabia, egypt, iraq, that water projects, construction projects, road projects might not get done because u.s. companies won't be able to get the financing of a credit agency. so this is a national security issue. and, you know, we're already hearing from exporters about this. the roanoke times basically in an editorial -- and, mr. president, i'd like to submit for the record more than 30 editorials from newspapers supporting the reauthorization of the export-import bank. the presiding officer: without objection. ms. cantwell: "the roanoke

times" was one of those newspapers. it typifies what companies are saying that really increase manufacturing jobs, you need to increase exports, and that's why we feel so strongly about this. "the roanoke times" also said that it's a global economy and that policymakers need to put u.s. manufacturers on an even playing field with foreign competitors in emerging markets and not take them out of the game. well, that is exactly what happens when we give a short-term reauthorization for nine months. no deal of this size and magnitude with energy companies gets done in a nine-month period of time. it takes for the processing of the bank basically three months just in the processing, the discussion of being at the table, closing the deal, competing with your competitors, takes much longer than that. and no one is going to be interested in closing a deal

when they don't know whether the bank is going to continue to exist. so that is why other newspapers like the times pick akuhn has said one of their -- the times pickayune, said reliable industries of new orleans, said the export-import bank is the major reason the firm has built an export business with 600 commerce in 60 -- customers in 60 countries. so i say to my colleagues on the other side of the aisle who don't understand business the notion that you don't get that the export opportunities for our economy are the biggest chances to grow g.d.p. in america, and you are flowing on that -- foreclosuring on that for the next nine months. well, you know what i say to that? you're basically shipping jobs overseas. that's exactly what you are doing. you are participating in shipping jobs overseas because

you don't want to reauthorize the export-import bank. it doesn't take a rocket scientist to figure out that the united states right now in manufacturing has a supply chain of small businesses all throughout the united states that help in the farm economy in building farm equipment, in the aerospace equipment building airplanes and airplane-related products and in the energy economy as we focused on today at our press conference, an all of these employers when they can't -- suppliers when they can't get financing for their products they are going to look to overseas suppliers who can get support from the credit agencies in their country. whether that's china, whether that's in france, whether it's in germany and other countries. so people who don't support giving predictability on the export-import bank are supporting shipping jobs overseas. well, our economy, mr. president, is struggling too much and our national

security interests are at stake to be shipping jobs overseas and not having the investments in these countries like iraq and egypt and other places where we want to build security. i believe in the long-term interests of fighting our challenge with extremism around the globe with economic power. i know people are going to talk about military power, people are going to talk about soft power. i believe in economic power that by having an export-import bank and doing business like building roads and building water and building energy facilities actually helps stabilize these areas of the world. well, i'm glad to see that general petraeus also agrees because he said the ex-im bank is integral to our country's security interests. integral. he's watched this both on the ground and he knows and understands what the export-import bank is and he's

asking us to give us more certainty and predictability than what a nine-month extension does because, as i said, business deals can't get done in that short a period of time. so here is a person who understands these issues both from a military perspective and an economic perspective, and i wish more of my colleagues would understand that they are basically just shipping jobs overseas. well, newspapers around the country are continuing to try to help echo this issue. "the charlotte business journal" said -- quote --"executives say the ex-im bank is a key to the competitive u.s. nuclear industry." they have been trying to focus on this issue. "the boston globe" said billions will be lost unless congress reauthorizes the export-import bank. and also went on to call exactly

what this game is happening right here now in washington, d.c., the government globe in their editorial in support of a longer reauthorization said conservative hardliners are rallying to shut down the government -- rallying to shut down the agency are risking serious self-inflicted economic wounds. that's because we don't have to be at this point. if you want to talk about reforms to the ex-im bank we had a lot of opportunity to do that but hardliners don't want to reauthorize the bank. and having been in business, somebody who believes in trend lines, and i would ask my colleagues who are going home and thinking that they're going to campaign about jobs to ask yourself what kind of message are you sending to the global community about the export-import bank when just a few years ago, an agency that should have a five-year reauthorization was only

reauthorized for two years, just two years. and now you're going to go into the international community and say wait a minute, we only believe in this bank for nine months. so the trend line is it used to be five years, for basically about 80 years used to be five years but because the conservative tea party people are having their way, not the majority of people in the house, but just the tea party conservatives are having their way, this has gone from five-year reauthorization to a two-year reauthorization to now a nine-month reauthorization, and who knows what they will propose next. we know they don't support the bank, we know they want to get rid of it. well, i think "the charlotte business journal" again characterized this issue very well because they know this industry, that -- quote --"the united states will lose its lead in nuclear technology if it is not involved in the construction boom that is happening overseas." well, you're not going to be

very involved in the construction boom over the next nine months because you're not going to be able to get people to close long-term deals when they think the other side of the aisle just wants to kill the export-import bank. so i think that the columnian in my state said it beth best. while chaining about the ex-im bank might make for sound bites that pander to conservatives, in the end it amounts to legislative negligence. they're talking about general about those who want to kill the export-import bank but the very day the house proposed a nine-month extension, the republican study group also proposed killing the export-import bank. make no mistake about it, there are those pandering to very conservative views who basically just want to end the export-import bank. well, thank god we have other

businesses in this country. and "the louisville courier journal" said when a small company is attempt being to navigate the international marketplace, it can be difficult to manage the risks related to financing growth and securing payment." that's a company in louisville, kentucky who knows what it takes to compete in an international marketplace. and that industry leader also said the ex-im bank has helped them manage the risk and as a result their export business has grown strong in recent years. that's what's at stake. these small businesses and these supply chains to getting this business done. so i think that for us right now the challenge is to try to get people to understand that a nine-month extension is not going to solve this problem. it is going to exacerbate the

lack of confidence in our ability to get this bank reauthorized for a long period of time. "the wichita eagle" editorial added a great comment, that the failure to reauthorize the export-import bank would be a playoff cal victory for some but a badly timed blow to kansas companies trying to compete mr. in the global marketplace." they went on to say reauthorize the export-import bank. so, mr. president, while i know the house is sending us nine months and i know that some people are going to try to take comfort that they have dodged this issue instead of taking a really hard vote on it or improving the bank, all they have done is let the marketplace -- left the marketplace with a great deal of uncertainty. it will cost us jobs, and congress here in the senate we need to act to get a long-term

reauthorization for the ex-im bank. the wichita paper had it right, reauthorize this bank, an short-term band-aid but give the certainty businesses need to compete in the global economy and help our economy at home by growing jobs. i thank the president and i yield the floor. i suggest the absence of a quorum. the presiding officer: the clerk will call the roll. quorum call:

mr. reid: mr. president, i ask unanimous consent the call of the quorum be terminated. the presiding officer: without objection. mr. reid: mr. president, i had

the good fortune in the last hour or so to hear the senator from washington, the junior senator from washington, senator cantwell, describe what is happening that is not good for the country. the ex-im bank is so very, very important to the presiding officer's state, the state of connecticut benefits tremendously from the ex-im bank. the small manufacturing state of the state of nevada benefits from it. as senator cantwell said, it is a shame that we're shipping more jobs overseas, and that's what we're doing by not extending the ex-im bank long term. she is such an advocate for this program, which is so important to our country. i underline and underscore everything that she said this afternoon. i'm so disappointed that we're not able to have long-term

extension of the ex-im bank. it's very, very important and it's too bad we're not going to do that. i ask unanimous consent the senate proceed to the consideration of h.j. res. 124. which was received from the house and is at the desk. at 1:00 p.m. tomorrow, september 18, following the reporting of the joint resolution, i be recognized, there be up to 4 1/2 hours equally divided between the two leaders or their designees. that upon the use or yielding back of that time, there be no other motions or points of order in order to the joint resolution other than a sessions or designee motion to table or a budget point of order. and an applicable motion to waive. that senator sessions or designee be recognized for motion to table, an amendment diswroint resolution that. if the motion to table is agreed to, i be recognized. that if the motion to table is not agreed to, notwithstanding rule 22, the senate proceed to vote on the motion to invoke cloture on h.j. res. 24. that is cloture is invoked, all postcloture time be considered expired, pending amendments be withdrawn, the joint resolution be read a third time and the senate proceed to vote on

passage of the joint resolution. the presiding officer: without objection. mr. reid: i now ask we proceed to a period of morning business, senators be allowed to speak for up to 10 minutes each. the presiding officer: without objection. mr. reid: i ask unanimous consent the senate proceed to executive session to consider nominations calendar number 1009 through 1026 and all nominations placed on the secretary's desk in the air force, army and navy. that the nominations be confirmed en bloc, the motion to reconsider be considered made and laid on the table with no intervening action or debate, that no further motions be in order to any of the nominations, and that the president be immediately notified of the senate's action and the senate then resume legislative session. the presiding officer: without objection. mr. reid: i ask unanimous consent following the vote on h.j. res. 124, the senate consider executive calendars number 893, 524, 702, 1002, 997, 708, 996 and presidential nomination 1917. that during that -- that there

would be two minutes of debate equally divided between the two leaders or their designees prior to each vote, that upon the use or yielding back of that time, the senate proceed to vote with no intervening action or debate on the nominations in the record listed. that any roll call votes following the first be 10 minutes in length and that any nomination -- if any nominations is confirmed, the motion to reconsider be considered made and laid on the table with no intervening action or debate, that no no further motions be in order, that any statements be printed in the record and that ththe president be immediately notified of the senate's action and the senate then resume legislative action. the presiding officer: without objection. mr. reid: i also ask consent that following the vote on h.j. res. 24, the senate, with all other matters that i just listed for the consent agreement, that we also include executive calendar number 959. the presiding officer: without objection. mr. reid: i ask consent the senate proceed to calendar number 567. the presiding officer: the clerk will report. the clerkreport.

the presiding officer: the clerk will report. the clerk: s. 2651, a bill to repeal certain mandates of the department of homeland security office of inspector general. the presiding officer: is there objection to proceeding to the measure? without objection. mr. reid: i ask unanimous consent the committee-reported substitute amendment be agreed to, the bill as amended be read a third time and passed, the motion to reconsider be considered made and laid on the table with no intervening action or debate. the presiding officer: without objection. mr. reid: i ask consent the senate proceed to calendar number 568. the presiding officer: the clerk will report. the clerk: calendar number 568, s. 2141, a bill to amend the federal food, drug and cosmetic act and for other purposes. the presiding officer: is there objection to proceeding to the measure? without objection. mr. reid: i ask unanimous consent the committee-reported substitute amendment be agreed to, the bill as amended be read a third time and passed, the motion to reconsider be considered made and laid on the table and there be no

intervening action or debate. the presiding officer: without objection. mr. reid: i ask unanimous consent the senate proceed to h.r. 4751. the presiding officer: the clerk will report. the clerk: h.r. 4751, an act to make technical corrections to public law 110-229 and so forth and for oh purposes. the presiding officer: is there objection to proceeding to the measure? without objection. mr. reid: i ask unanimous consent the bill be read a third time and passed, the motion to reconsider be considered made and laid -- the motion to reconsider be laid upon table and there be no intervening action or debate. the presiding officer: without objection. mr. reid: i now ask consent the senate proceed to h.r. 480. -- 4809. the presiding officer: the clerk will report. the clerk: h.r. 4809, an took the reauthorize the defense production act to improve the defense production act committee and for other purposes. the presiding officer: is there objection to proceeding to the measure? without objection.

mr. reid: i ask unanimous consent the bill be read a third time and passed, the motion to reconsider be considered made and laid on the table and there be no intervening action or debate. the presiding officer: without objection. mr. reid: i ask now mr. president that the senate judiciary committee be discharged from further consideration of s. res. 545 and that the senate proceed to its consideration now. the presiding officer: the clerk will report. the clerk: senate resolution 5 545, recognizing hispanic heritage month and celebrating the heritage and culture of latinos in the united states and so forth. the presiding officer: is there objection to proceeding to the measure? without objection, the committee is discharged and the senate will proceed to the measure. mr. reid: i ask unanimous consent the resolution be agreed to, the preamble be agreed to, the motion to reconsider is laid upon the table and there nobody intervening action or debate. the presiding officer: without objection. mr. reid: i ask unanimous consent the judiciary committee be discharged from further consideration of s. res. 543 and that we now proceed to that matter.

the presiding officer: the clerk will report. the clerk: senate resolution 5 543, designating november 1, 2014, as national bison day. the presiding officer: is there objection to proceeding to the measure? without objection, the committee is discharged and the senate will proceed to the measure. mr. reid: i ask unanimous consent that a resolution be agreed to, the preamble be agreed to and the motion to reconsider be laid on the table. the presiding officer: without objection. mr. reid: i ask unanimous consent the senate proceed to a series of resolutions en bloc, s. res. 552, 553, 554, 555, 556, 557, 558, 559, and 560. the presiding officer: without objection, the senate will proceed to the measures en bloc. mr. reid: i ask unanimous consent the resolutions be agreed to, the preambles be agreed to and the motion to reconsider be laid on the table en bloc with no intervening

action or debate. the presiding officer: without objection. mr. reid: i ask unanimous consent that the injunction of secrecy be removed from the following treaties transmitted to the senate on september 17 of this year by the president of the united states: extradition treaty with the republic of chile, treaty document number 113-6. i further ask that the treaty be considered as having been read the first time, that it be referred with accompanying papers to the coforeign relations -- committee on foreign expreelingsz ordered to be -- relations and ordered to be printed and the president's message be printed in the record. the presiding officer: without objection. mr. reid: i ask unanimous consent when the senate completes its business tonight, it adjourn until 9:30 a.m. tomorrow morning, september 18. that following the prayer and pledge, the morning hour be deemed expired, the journal of proceedings be approved to date and the time for the two leaders be reserved for their use later in the day. following the prayer and pledge, the senate recess subject to the call of the that chair. that when the senate reconvenes following any leader remarks, there be a period of morning business until 1:00 p.m. with senators permitted to speak for up to 10 minutes each with the

time equally divided and controlled between the two leaders or their designees with the republicans controlling the first half, the majority the final half. finally, that at 1:00 p.m., the senate proceed to h.j. res. 124 as provided under the previous order. the presiding officer: without objection. mr. reid: for the information of all members, at 10:00 a.m. tomorrow morning, the president of ukraine, president poroshenko, will address a joint meeting of the congress from the hall of the house of representatives. here in the capitol. senators should begin to gather in the senate chamber at 9:30 tomorrow morning, depart at 9:40 tore the procession to the hall of the house. the senators should expect a series of roll call votes at approximately 5:30 p.m. tomorrow morning. if there's no further business to come before the senate, i ask that it adjourn under the previous order. the presiding officer: the senate is adjourned until 9:30 senate is adjourned until 9:30

before the weekend senators could consider a short-term allocation that includes money for opposition forces for fighting isis. you can find live coverage on c-span2.

candidates for there is some governors' seats met last week. the democratic candidate for governor trying to unseat a republican candidate suggested immigration reform and the state budget and cater drug education. -- k-12 drug education. >> please welcome the candidates. [applause]

a note to our audience you will hear another round of applause at the end of the evening and in between you will hear silence. each candidate has one minute to make an opening statement reflected going to see who would go first. >> let me say i am one enter% supportive of this role as commander in chief to protect our nation put. now for the opening statement i do want to be next governor. we have been endorsed by the arizona chamber of commerce the national federation of independent businesses and i am honored to receive them -- their endorsement. my wife is joining me tonight married 44 years this october with three sons. their home doing homework and not watching this on

television. [laughter] i have a very clear agenda as your governor i am a businessman and i want to take a plan of action to be the independent voice to jump-start our economy said everyone who wants a job can find a job. i want to improve our case through 12 education system said to have improvement inside schools. i want to arizona out from underneath the fun of the federal government. i look forward to the discussion tonight. thank you. mr. duvall. >> great to be with all of you. . .

is that i will veto any budget that cuts another nickel or penny from public education. i am proud to be here with jennifer and my son will and our son is at home a 6-year-old monty. these education cuts are the most important issue facing us to drive our economy and right now we have a lawsuit lawsuit which is unsettled by the

supreme court which is cave creek versus ducey which we have to do with right away and i'm calling for us to begin funding our schools immediately. no more delays, no more postponements. it's time to make funding k-12 education or principle priority in the hope you will join me without tonight. >> thanks to both of you. now let's get going with her conversation. success as governor ended arizona's success depends on the health of our state budget. as their next governor one of you will inherit a budget crisis. don't take my word for it. that is what governor jan brewer said not long ago. this graphic on the screen, here is what one of you will face. the legislature's budget staff projects a 285 million-dollar

deficit in the current fiscal year. that's right now. that includes three and $20 million in court-ordered backpay because the legislature and governor illegally underfunded k-12 education. that payment could go into the billions. looking ahead to fiscal 16 which would be her first formal budget as governor of the deficit is projected at $765 billion. we are talking about almost a billion dollars over the next two years right now. the good news there is a day fund stock was boarded and $50 million for use as the legislature and governor choose. let's start with a payment education. judge ordered the first payment to be made immediately. there are some appeals. doug ducey we as a legislature in january to make a payment? >> what i want to do is make sure that the resources and k-12 education get to her classroom so they can support our teachers teaching and our students learning. i think it's important that we understand where the state is financially and where was it like him at this as the state treasurer. in december of 2009 we were negative $730 million in our checking account so there was not 1 dollar available to pay teachers, fill potholes or

provide essentials to state services. over the last four years the state has dug out of that financial hole. today we have $1.4 billion cash in our operating account, $454 million in a reserve account earning interest. if the courts rule that we must put this money into education we will put it into education but what i want to do is take the opportunity to restructure our formulas and i don't believe our working. i don't believe they are getting dollars to the classrooms, to support our teachers so i will take this crisis is an opportunity to restructure education funding and i do support the appeal. >> we will talk about education funding later. will we have the legislature soon as you take office to pay the first installment? >> once the appeal is exhausted in the final court ruling has come, yes. >> fred duval i'm going to

expanded and doug ducey is well explained with as many specifics as you can wear what you will find the money to deal with this deficit. >> thanks for for the question and the answer is yes without any hesitation and in fact quite the contrary i wish the governor would begin the discussions now about this payment. the supreme court has ruled we can keep delaying the payments. we can keep postponing what is going to be inevitable. we have lost half a generation. our class sizes are too large. the destabilization is too gre great. we are hearing story after story about what's happening in our classroom. we have to begin making this investment discussing how we move forward. we should draw upon it is the first step. we need to look at state trust land coming back into full value that offers potential. we can do procurement reform centralizing kirker meant in order to pull together some dollars to get back into her

classroom but we must have the commitment to put education first and quit the delays and then grow ourselves out of this recession. >> this is the number one question we are getting from folks, this deficit which will constrain you. i'm not hearing anything that gets us to 300 million let alone a billion. doug ducey take a crack at it. you have talked about as you build a business now you want to shrink the government. it looks like this is your opportunity. what are you going to shrink? >> i think the opportunity again with our budget is to go through it as a businessman line by line, dollar by dollar and get rid of anything that's not working like a lobbyist loophole or a regulation that weighs down our business community and the creation of jobs. there's just no way to fix this budget without kickstarting our economy and that's why i'm excited about the opportunity to be governor. i'm someone who has built a brand that is known and loved around the country and now the

world. i believe i understand what makes makes small businesses grow and i want you to imagine an arizona where existing companies are growing growing and where out-of-state companies look to arizona is the perfect place in which to do business. >> i hate to interrupt that i want to ruba spec into the deficit discussion. i'm not sure the audience is hearing answers to the question. again you talk about shrinking government. what services, where would you start with shrinking the government? >> i want to start with the government that we need rather than talking about cuts. >> what is off the table and what's on the table as far as the government we need? >> let me tell you what i won't do. i'm not going to raise taxes, okay? that the commitment i will make tonight. >> so no new revenue so where will the cuts come from? >> i'm going to go through the budget like a business person line by line and dollar by

dollar to restructure this. let's start with the assets that we have. there is $1.4 billion cash in the bank today. you said it brands there are $454 million in a reserve account earning interest in the permanent land endowment trust fund is an all-time record high of $4.5 billion. our state has assets and i'm going to look at the budget one fiscal year the time. and deal with it. >> can you give us an idea, what is on the table? where the cuts going to come from? >> i do believe that we need to -- this is a long-term investment in our state and a growing economy is an economy that addresses its taxes in its regulation and its liability. we also have to have children coming out of our k-12 system better equipped for the future. >> fred duval give us specifics.

where would you cut and how would you raise revenue because you've indicated you want to add programs. where's the money going to come from? >> i would love for doug to finish an answer because i'm talking about going forward in making these payments now. the voters have spoken. the court is now world. doug is proposing a feeling it and be serious and he's going to be honest about saying education is to be off the table then let's get on with this commitment. his court-ordered and the single most important thing we have to do. >> that payment puts us in a deficit right way. where's the money going to come from? >> i have indicated some specifics. number one we looked to the rainy day fund and procurement reform which has been done in many states successfully number three we will look to whether or not their opportunities to prioritize -- privatize portions of state government. >> such as? >> both of us have talked about the lottery and they're the things that look like opportunities to monetize. we'll have to have a comprehensive look at all of those things.

we will look to make sure the way we structure access that we create more prevention and wellness to bring health spending down because it's a big part of the budget. >> it seems like a lot more work to get to a billion. let's move on to education. rate the importance of the state's education system k-12 and universities as a tool for building our economy. is it the most important tool in the box are one of several tools? >> is one of several tools. i want to look at arizona as an economy that's not only growing for existing businesses but where others outside look to our state is the perfect place in which to do business. i'm really getting tired of the rhetoric around jobs. what leaders do is they go get jobs and we are perfectly positioned to do this as a state. california is right next door and they are pushing producers and companies out of their state state. they're not coming to arizona. we are already chicago's favorite suburb and illinois is pushing businesses out of their

state but they are going to indiana, florida and texas so i want to begin now. it's time to act. we need to improve our tax code. >> trying to focus on k-12 and universities. >> when you are going to bring people to our state you have got to have an attractive place to wish to do business in k-12 as part of the discussion. >> fred duval the arizona legislature has cut funding for universities. you told a reporter i am not philosophically against tuition increases. under what conditions would you support more increases to support university's? >> let me address this. there are roughly $2 million a million dollars so far spent on this and i welcome the chance to address it. number one i increase financial aid in arizona faster and more aggressively than any state in the united states and as a result today there are more students of middle and lower income who are performing an

smart incapable going to our universities. number two coptic governor in the legislature couple hundred million dollars from universities in one year. i took a leadership role and we went after cuts. we sold off dorms. we privatize groundskeeping into the variety of things to reduce costs. beyond that i was very proud to come up with an entirely new delivery model for higher education. today's students can go on line and take courses from community colleges and universities and get their degree and one third lower cost. the urgency of that moment requires new thinking and i led that and is now a national best practice. number four is chairman of the board of regents having redesigned our institutions have produced a budget which resulted in the first zero flat tuition increase in modern arizona history. number five our universities today are operating at a two to 3% tuition rate increase and stabilize with better students,

better results, better retention, better researched and we have redesigned the institutions. i don't appreciate these attacks which are half-truths which don't explain the difficulty of a 400 million-dollar cut your universities. people say just close the campus. i said it's not going to happen. his team broke it and i fixed it. >> doug ducey your team broke it, $400 million in cuts in three years. >> i don't think that's exactly accurate fred. i think the record would show under your leadership on the arizona board of regents there was record high tuition increases, record high spending and record high borrowing. you came into the regions in 2006 in the budget was $860 million. for the next five years he had at least $860 million to spend or more and that was a record high. the bonding continued in the

tuition hikes continued. if that's your governing philosophy this day would be in terrible trouble and a downturn. so those are the facts. >> we took a one third enrollment increased during that time. our per student investment remained flat for the time i was on the board of regents while we were taking on record levels of new enrollment. the question simply became just close campuses. the only way you can do with deal with this is to close campuses. there's no other legal way to get around the budget shortfall. i said not going to happen. we are going to redesign the system. i was called in front of the national governor's association to testify on az transfer.com as to how does you create more opportunities for students at a lower price. our universities produce degrees more efficiently than almost any university in almost any universe in a country so don't talk to me about inefficiencies. this was a crisis brought upon by 50% reduction in state investment in our students.

we can't have a 21st century economy unless we have got strong universities and i thought to make sure they stayed open. >> doug ducey give us two ways you would have gotten to $400 million in cuts. >> just like every person in the audience and just like state government finally got to it you have to tighten your belt. you look at the budget of the universities over the course of time. i think we need to look at a way that we more effectively and efficiently educate our children and our higher learning and we have to be accountable to the voters. i i mean there are just over $9 billion in the state budget. that is what we currently have. if we want to grow this economy and have a thriving k-12 system and i came out here is a midwestern kid to get an education. i'm a very proud sun devil. i talk about being a fellow from the school of management of e.u. aid. these are the amount of dollars to deal with. we have to take a businesslike

approach as we reform education. >> would you have been okay with closing campuses? >> no i would not have been okay with closing campuses. i'm not here to do fred's job is the reason that there are different options than to like the legislature or treasure or what we did to the endowment trust fund. i would look at different options that we can do things more affordably. >> let's go to k-12 now. 90% of arizona's students attend k-12 public schools. what's the difference between the two of you and how he you would handle getting arizona up from the bottom of the country ranking on education, public education? >> i think this will pointe of s between us. doug has talked about reducing arizona's income tax to zero. let me put that into perspective. we have a 9 billion-dollar budget. the state income tax is maybe 45% of that. the notion that you could on top

of the budget deficit that graham has described that you can withdraw 40% of state budget and still fund health care, corrections and education is just not a real set of choices. you have got to make decisions. my number one priority will get us back into the business of investing in education and making tough choices to ensure that will happen. the notion that we can have it both ways, i would like to cure cancer and promise everyone balmy summers but you have to be candid about the choices we face. this deficit will not allow for us to do both education and that kind of tax reform. >> the deficit might not allow us to put more money into education plus something else so you say tough choices. what's a tough choice you are going to make to invest more in education? >> we are going to be able to have the opportunity to decide in the out-years what we would

do. >> here we are day one, you have a $300 million deficit. back to my first question. >> i have given you five examples. >> sea of voters think that gets to 300 million. >> doug ducey i asked you this back in june. the math just doesn't work if you get the income tax down to zero. you have to make up $4 billion. >> the income tax to zero is the direction and let me address this from this perspective. our tax code looks like somebody actually wrote it on purpose. i think that would be the beginning of the healthy economy that would protect arizona families and hard-working taxpayers. i think people deserve a tax code that is simpler, fairer, flatter and a lot easier to deal with. that is not what we have today. i do want to reform our tax

code. steve moore of "the wall street journal" and bob rock of beers on her public say these are doable ideas. it's going to take some time. i said i'm going to need a term or two as governor to do this. we will lead a growing economy and more effective and efficient government and a plan of action. that's the direction i want to go in. to do with education today we will have to take the $9 million in total we are standing and i want to restructure. >> 9,000,000,070 and what? >> correct county state and federal and k-12 education. >> arizona spends 1.5 million? >> the state spends a portion of that. and the federal government does. >> and i talk about my direction? >> i just want to stick with taxes because bob also said taxes don't make much of the difference in decisions in our tax code and our tax rate is

already really low. again where's the money coming from? this is a consistent theme. >> first look media to those with all due respect that say that taxes don't make a difference, why is new york writing these commercials that say move your business to new york and you will have 10 years of no taxes if taxes don't make a difference? why he has texas led the nation in economic development job creation and business relocation with no income taxes if taxes don't make a difference? when i come into office in 2015 i will have to deal with a million schoolchildren in our k-12 system. what is going to be of the most importance to me is that they have the proper funds and resources that the classroom level. i believe you can spend $9 billion better than we are spending it today. that is what i want to do is reform around funding formulas that i don't think are serving our children and their teachers and parents well.

$9 million is a lot to start with and those are the dollars i'm going to spend. >> we have a mass for your questions on hashtag az gove. let's get to a couple now. are you for common core and why or why not? suborder. >> the career standards led by governor brewers something i do support along with governor chris christie along with bipartisan governors across the united states. if we are going to compete in a 21st century economy we need to have accountability metrics that compare us to other schools across the city across the state in the world. the only way you can do that is to have international benchmark goals. these are not curriculum. these are simply goals based upon student grades and ages. if we are going to be serious about investing in education which is the direction i want to go. i don't want to do more tax reform. i want to invest in education.

we have to tie that to the kind of performance expectations of our schools, our teachers and their students in order to ensure we get better results from every school so that every child no matter what home, what school or were they start in life no matter what zip matter what zip code that that's far, that magic that happens and k-12 can ignite their potential to contribute as employees and employers in our economy. the way we do that is to make sure students can perform and international economies. >> doug ducey do you support common core? >> i did not support common core. i've spoken out against common core. george will wrote in the "washington post" that 50 years of continuing federal involvement in k-12 education has resulted in mediocrity. common core has been tied to washington d.c. for funding and for that reason i believe it's co-opted something that began as a good idea and now i think it's unworkable in the rooms that i

had to talk to moms and dads all across this campaign. i want you to know what i'm poor for. i'm for higher standards. i'm for teachers being empowered in the classroom. i'm for principals you who really make the difference as leaders of those schools. we have seen that all across the state. i'm for refunding formula so we get the dollars and resources where they are needed and that will make the difference. i'm also not part of this blame arizona first crowd. we have. the top 10 high schools in the nation in the state of arizona. we know how to educate a child. the problem is there are too many places where it's not being done. i want to come and reapply the best practices at the schools that are working across our state and lead the country in improvement year-over-year. >> the school board voted last night to ask the governor out of -- let them out of common core. we have do you allow the gilbert

school board out of common core? >> why would i mandate to a school board as governor? what they should do in terms of an initiative that has peggy noonan, george will. the list goes on and on, the teachers union better posted this. what i've said about common core is i don't know who botched the rollout but i have found it an unhappy distraction. if we can talk about of outcomes and results were kids, as if we can envision what a kid looks like walk across a stage on the day of graduation and what they know and lead back from a state perspective that's the kind of education education system that doug ducey commiseration will move forward. >> one of the clear of the clearest goals you have outlined is you would fund the wait list, the popular charter schools schools. does that mean pain for them to construct private operators to construct their schools and

somehow helping to finance that? >> this is another idea from the arizona republic i perceive that we have some of the finest high schools in the nation here. the basic school system as a 2000 could wait list. the great heart school system has a 12,000 could wait list. i just believe that mom and dad know better where their child should go to school and someone that writes the zip code. i would like to sit down with education champions and work with the funding formulas and say how can we move these kids into the school they prefer more quickly? i think it's a huge opportunity. >> does that include instruction? is a school for a long wait is. >> it's not just public charter schools. it's also public traditional k-12 that are excelling could with open enrollment an apparent to want to move their kids from one district to another, i want to reward and incentive those

districts. i think there are ways we can do that by giving flexibility to those dollars so moms and dads can decide where they should be spent to educate their child in the k-12 system. >> i still don't understand. >> i would offer an example of the educational savings accounts. i think those have done a good job to demonstrate flexibility for a small number of children and if there's a school with a wait list i think it would be an opportunity through the educational savings account model, the empowerment savings account model to let a child decide where they want to school in the public system and to fund the wait list. >> fred duval in a comment? >> 85% of our children go to the public schools. they are in the neighborhood and they are in their school and what we know about talent, we know about human capacity is that it is randomly distributed at birth.

opportunity is not equally distributed in life. so gifted students occur in every house in every home and every neighborhood and every school. what we had to make sure we do is fund schools across-the-board in a way that those gifts can be lifted. that magic can occur. i was talking earlier today with amber gould. she is from the glendale school district. she was walking me through what's taking place in the school districts. let me give you some examples. they have eliminated the librarians and councils. in scottsdale today everyone say they let the students out at 1:15 is a budget savings and the students lose two plus hours everyday. the tucson school district told me 150 classrooms don't have a permanent teacher. a phoenix superintendent recently told me that he has put together a seventh grade math curriculum. he can't find a permanent teacher. he has seven different substitutes lined up for two weeks in a row. doug talks about the money

that's washing around in education. we are strangling our capacity to make sure that every school provides every student the potential to be everything they can be and you asked a question earlier how do i place education in the array of assets for economic development? i think it's the most important thing. it's a talent driven world where human capacity, human part to get -- productivity will be the most important thing. we can't compete on cost against vietnam or thailand. america and arizona has to compete on a compete on the most innovative workforce and that happens in every home and school district. we have got to make sure that we are resourced the students in the schools better and you can't get there if your first priority is tax review. you have to make education a party. >> we have to move on to jobs now. arizona has let the country at a per session but that hasn't happened after the great recession. the state has regained 62% of

jobs lost. the country as a whole has regained 107% of lost jobs in other words all the jobs and then some. the good news we ranked 14th in job growth in the first seven months of the months of ear bud. burying usual who trail the southwest texas utah colorado and our state of california. there is more. people are not moving sure some of the way they once did. millennials are not buying homes the way baby boomers did. economists are pushing a recovery back to 2016. are we at a turning point gentlemen gentleman, a fundamental moment where the growth in the economy we have lived on for decades is over? fred duval? >> is certainly not over. arizona has an exceptional i will call a dna. we are in innovative entrepreneurial place and it's exactly the right asset in a 21st century economy where economic growth and arista small businesses is the most important thing.

we have got that in arizona but here's what i hear from businesses looking to move across the country. they say will i find a workforce that i need in order to grow my business with the talent be there and secondly will my children have as good school to go to? we are losing in that debate. this is not about taxes. we have lowered we have lower taxes and arizona 23 the last 24 years. in the race to be more competitive, we aren't going the way we need to. education is the driver of the 21st century economic growth and we have to simply make it our principle priority. that is why will veto any budget that cuts another nickel. >> doug ducey why is arizona falling behind? >> this is why i'm running for governor to kickstart our economy to grow again like we have enjoyed in the past. i'm curious how many people in the audience tonight were born somewhere other than the state of arizona? it looks to me at least well

over 50 or 60% of the hands went up. i asked this question everywhere across the state. the cotton growers council, those folks were all born here. people vote with their dollars. in a game of states people vote with their feet with their ryder trucks and new halls and we have been leading in population growth for decades. what we haven't been leading in his economic development, job creation and business relocation. i have talked to governors like rick perry, jeb bush, mitch daniels and mike pence of indiana and scott walker. we need to profile our state from what we know to be, the warm welcoming, inviting state that is wide open and entrepreneurial. the governor will be signed in january 2015. think of what january is going to look like at the state of arizona. we will kick off at the fiesta bowl. two weeks later we will move to the pro-bowl in the entire country will be watching.

we'll have the largest golf tournament in the world and there will be advertising in chicago where it will probably be a freezing miserable winter. at the end of the week the entire world will be focused on arizona as the super bowl kicks off. it's a great time to hit the refresh button and to brand the state that we are and let people know that we are open for business. there's no way to create these jobs without moving business is from california and illinois and other places they are moving and allowing our current small business owners to grow and thrive. i was a small businessman. i know it makes a small business work. those are the principles and that the energy i will bring to the governor's office. >> with all due respect we have this event every year and most tears. >> the super bowl? >> not the super bowl but the alternate. we have seen that for years. my question is what's different?

it seems something fundamental is change the going to do that's different that's not part of the playbook we have had for many years? >> that challenge i would say back to you graham is in many ways we have grown organically. we have had in many ways an embarrassment of riches of people who say i want to move there for no other reason except that seems to happen. i want to make growth the objective. i think the growth is a gift. i fly home every summer to see my dad around father's day back to toledo ohio. when you fly from sky harbor you land in detroit michigan. 1960 detroit was the richest city in the country and i imagine they never thought the growth would stop or the big three could be slowed down. it's completely different and it's due to a lack of leadership and poor public policy. i think sometimes i hear people make a bit of fun of arizona because we grow, because we build a lot of houses and we have construction and real estate.

>> do you have any explanation for why we are not growing now? why are we lacking? >> typically when a country goes into a downturn it's harder on arizona because our economy has been built on growth. and when the country -- can i answer your question? >> we have to go to a break. >> a hard stop. >> we have a hard stop coming up in 20 seconds or so and i hate to do that. we are back on az central.com. thanks for sticking with our debate. doug ducey my apologies i intrepid due in mid-thought. please continue. >> we are fortunate that we have a state that people want to move to and when the economy turns down nationally it affects us in herseth morrison a growing economy and when the economy booms typically we have boomed along with the poor more so. i do have a concern that our national economy graham is not booming. this is a very tepid recovery. this is the part of the reason i

believe the arizona chamber of commerce has endorsed me and the national federation of independent businesses. they know it's a business person i understand how to make things grow and that is what i will bring to the state's economy. >> let's move onto some of the social issues which were on the forefront in the spring. arizona's images as you have noted as an economic development tool but arizona took a beating last spring with s.b. 1062 passing the legislature. major corporations shunned arizona because of what they saw as a bill promoting intolerance towards lg beachy residence. she is one of your earliest endorsers. if the legislature passes another version of 1062 would you veto at? >> 11062 came up i said i would veto it. graham you are pointing out an individual in my coalition and i was very proud of my coalition.

i built the broadest coalition of anyone in the republican primary and i'm going to continue to add to that coalition. again i will go to january when the governor signed in. we all know what a wonderful state this is to live and so i think the idea of taking that opportunity to protect that out is something i will do. >> if that bill came to again he would veto it? >> i said i would veto it and i persist. >> fred duval? >> i called upon the governor immediately, don't even wait. go to the legislature and veto this before this firestorm of national criticism that has hurt our economy so much. it took dug a couple days to get to that point. we can't let these issues of intolerance and discrimination define our state. i go back to the theme i mentioned earlier. if you really appreciate it's about drawing talent, talent comes in every god-given form

and it comes with every sexual orientation in every color. you have to put a welcome mat and these issues like 1070 and 1060 to create an image for arizona that is not who we are and it's not who we aspire to be in a consistent with the town-based economy so i would veto it. i would tell the legislature don't even sign it. >> and other related image question, doug ducey you get the value of branding. why would you attach your brand to the joe arpaio brand? you say want to represent -- but it's a pariah. how would you attach your brand to his brand? >> let me say i did build that coalition. it was the broadest coalition of anyone in the race and i'm proud of my coalition. >> how would you make your final argument of others'? >> i continue to add to that coalition and i have got people like peterson and her day job,

she runs the tucson hispanic chamber of commerce. the latino rooms i have been in the number one issue is the economy. the second issue is education and i leave those those rooms think you may have a winning message to win voters. i'm not asking folks to switch parties. i'm asking people to get behind a pro-growth positive message to the state of arizona and i intend to win a large share. >> do you understand how joe arpaio since a specific message to latinos in the state? he is opposed by a majority of them according to the polls. >> according to the polls and i will tell you i had someone tell me that if you do get to become governor doug you will get to set the agenda but when you run for governor it's the electorate that this sets the government. we had an issue where there were thousands of people transported from texas to arizona and dropped off at the greyhound bus stations. border security again became an

issue inside of our stay. i did my best to responsibly address this and i worked with my coalition to do that. i'm here now talking about the economy and education but this is a real issue in arizona. i think in some ways its exclusive of the opportunity to grow our economy, to partner with our largest trading partners in the south which is mexico and to make the case in these latino rooms of opportunity for all. good jobs and a chance to get ahead and kids getting a year of growth for a year of seat time in our k-12 system. >> where am i would like to respond. i think you are defined by imburse -- endorsements of coalitions. that has been endorsed by sarah palin and joe pio and i think it says a lot about the choices he makes and i respect that. i have a different coalition. many of you may have seen a full-page ad with republican endorsements.

i believe in the comes out of my 40 some years of working across the aisle is what arizona needs is a bipartisan centrist coalition that is about economic growth, fixing the classroom, long-term investment in talent. weather was working with governor babbitt and the republican legislature to build access to the groundwater code which took my partisan partisan partisan leadership with a working the clinton white house to implement welfare reform, throughout my life or most recently working with pickens on the dash change occur when the folk show a capacity to build capacity. >> 15 seconds please. >> since fred wanted to buy my coalition would point out that part of his coalition is raul corvallis and supported nancy pelosi and spent his entire life is a special interest lobbyists.

that is what you have done so to say you are not a partisan someone who is democratic money man for the democratic governors association is a bipartisan individual. i've been selling waffle cones. that is what i've been doing. i've been in the private sector. fred your entire life has been at the intersection of politics money and washington d.c.. >> i don't think too 200 republicans including many elected officials including leo corbett. we'll corba was the son of president when i was governor babbitt's liaison and ran against babbitt in 1982. he is one of the endorsers. these are people that have seen my strategic ability to reach across the aisle and build a coalition around big. >> let's get to some questions we have been getting at easy governor twitter feed. what is your stand on marriage but for the federal appeals court right now. fred duval? >> i favor marriage equality and

i believe it's time to recognize family members who have struggled with this issue and throughout my life we have dealt with this and it's high time we end this discrimination and enable folks to marry. >> i'm supportive of traditional marriage and i've said to folks as an elected leader don't expect people to agree with me on every issue but i will state what i believe. i will respect others and i will listen and treat everyone with dignity and kindness. on an issue like is the governor does not make the decision. this decision is decided by the people i believe and we will see what the people say that that's where i stand. >> end of the courts ruled in favor of same-sex marriage he would abide by that? >> well when you become governor did take an oath to uphold the law and the constitution and i will uphold the law and the constitution.

>> another question on the minimum wage, which increase the minimum wage in arizona to $15 an hour? doug ducey? >> nobody wants a minimum-wage job. i think what people want are fulfilling careers. my concern is i want to maximize everyone's opportunity to have a larger paycheck. my son has a minimum-wage job. he makes $7.90 an hour. i don't know that he would still be employed if the minimum wage went to $15. i would first want to say is there any talk of a teenage minimum wage so they don't destroy teenagers that are in the workforce? the second thing is the nonpartisan congressional budget office. that legislation would have passed america would lose 500,000 jobs. if somebody wants to see more jobs, more opportunity, more careers happen i have to think for us to do something for 500

jobs to be lost is not a good idea so i'm not supporting it. >> fred duval. >> the minimum wage is not cap does. fortunately in arizona that voters in western years ago passed initiatives of the arizona minimum wage is indexed to inflation and he keeps it more current which is i think the right approach going forward. >> fred duval something occurred to me. correct me, did you get a chance to respond to your jobs plan? earlier in the evening did you respond when we were talking to doug ducey about his jobs plan but i'm not sure if i brought you into the conversation. >> i welcome the chance. >> trying to be fair here folks. >> i'd be happy to talk about jobs. >> being as specific as you can doug ducey we have been doing a lot of the same things for a while. what can you do that is different? >> i welcome the question.

it's so important that we create economic energy in arizona. number one is quit these self-destructive things like 1062 clearly but let's get on with growing the economy. number one is nursing small businesses from the kitchen table to the first lease. we lose too many first businesses in the first couple of years. we need lower tax treatment of public policy tools to make sure that entrepreneurial energies more successful. number two trade with mexico is an opportunity for us. mexico's middle class is growing faster than our own. we have been watching texas new mexico and california steal a lot of fat trade. we have got to create the infrastructure and strategy and engagement with mexico to take advantage that. i believe bipartisan business leaders -- and number three back to what we are talking about earlier. you have to have innovating new things that the rest of the world will want to buy.

that would require research and development and requires research and development tax help you to require strong universities greater requires commercialization. requires export strategies that we have got to be in a business where we are creating things that other people outside of arizona want to buy. >> let's move to migration. president obama said he will take executive action on immigration after the midterm elections. it could include legal status for millions of undocumented immigrants. fred duval do you support the present acting on his own? >> what? >> what about? >> what i hope the president will do is take this moment to create a permanent sustainable bipartisan solution. there is a bipartisan consensus which is not yet passing the congress but it's time for a conference of act led by her senators mccain and flake as well as democrats that focuses resources on the border to secure the border more than it is. >> is that i no?

>> i want to get a permanent solution with the congress. i support the postponement of the consideration. i hope what happens is that we solve this one's and permanently so we have a solution that works for arizona. >> is that a yes or a no? >> it's not going to happen. i think we are going to pass a bill. >> doug ducey? >> the president said it's going to happen it's going to happen and i'm opposed to it. on an executive order from washington d.c. is not -- [inaudible] >> i'm in favor of comprehensive reform passed by the congress that is being held up by the republicans in the house. it's time for the president republicans who have failed us in washington. this dysfunction has gone on long enough. i wash with energy working with t. boone pickens and budget issues and now we are watching it on immigration. we need this congress to act on

a permanent solution that works for border communities and state economy. >> doug ducey we talk about mexico in the context of immigration. what about trade with mexico? what's the plan for developing trade with mexico? name two or three specific opportunities. >> they are our largest trading partner times four. this is a great opportunity for for the state of arizona. we are perfectly geographically positioned next to probably the worst -- state in the nation california which is pushing producers out. it's a relationship with the governor of sonora and their relationship with the governor of sandalow and a relationship with the president of mexico with a trade office. it's not only symbolic but substance. we have the maricopa court which is a world-class court an opportunity for us to build

infrastructure. when the good guys are coming across the trucks come the transit, the tourism the trade they feel welcome to america and welcome to arizona. this is our national relationship and i think it's really the way to jumpstart southern arizona's economy. pima county, cochise, santa cruz are in a much different position than what we are feeling in maricopa and i think pulling the tourniquet off of that port in leading trade flow taking a page again out of texas will dramatically affect our economy and a positive direction. >> do you want to add anything? >> we have to address address mexico in a big way. there's more to be done on the port although at the moment it's in a bottleneck. the deep water port in the baja is a huge opportunity to move goods north and east and west. it means more cargo capacity at our airports. we need to look at this as an architectural design.

we are the most cost-effective efficient place for mexican goods to calm and to rebuild the mexican tourist traffic the disappearance of which has decimated so many towns in tucson and southern arizona. >> a question i would like to ask in debate is there anything the other side is saying about you that is just flat out wrong? doug ducey? one thing. [laughter] just one. >> i will just say cold stone creamery is an american success story that started here in arizona. we built it to 1440 ice cream stores operating in all 50 states. we sold cold stone in 2007. today it operates in 2500 countries around the world -- 25 countries around the world. i'm most proud of my wife angela and my three sons and after that i'm the most proud of cold stone. >> what is the one thing people is that people is said that as ron? >> everybody that's watching tv says what folks are staying --

saying about cold stone creamery. >> fred duval the question for you. >> i do find it somewhat disingenuous that there is this barrage of partisan attack ads about this issue in the border regions when we were faced with this 400 million-dollar cut. and it was out of context. it's completely a half-baked end. it's the nature of politics. i issued a dark money challenge with doug several months ago. let's call out these folks and tell them to go away. let's have this kind of debate where we mix it up and share our views and visions of arizona for our voices but unfortunately that is not what's happening. >> cities have big beefs with the legislature. they have lost a lot of funding over the last several years. what would you do to work with cities and towns to restore their revenue doug ducey? >> i would build a relationship,

i have gotten to know -- and i reach out to these mayors who are doing an excellent job. somebody who believes in a more limited government the last thing i want to do is dictate to her cities what they should do from the state capitol just like i don't want our federal government dictating to our states from washington. when we have well-run city governments and city councils that want to get these things done i want to give them their funding in their programs, let them do what they need to do and the state can play its role. >> fred duval? >> i work with mayors on many beaches to my time building the phoenix freeways and other issues in my background. the most important issue i think between the cities, counties and states are these fun sweeps. we are just devastating our infrastructure. it has to be a priority that we stop this. we have a budget deficit. if we were to repeal the income tax that deficit would be greater and we couldn't do that but we have to make sure cities

and towns have the resources to assure there is public safety, their streets and road repair and the highway growth in the future to support her business growth we so badly need. >> that brings us to the end of our questions. now each candidate has one minute for a closing statement that we did flip do we did with aquinas is at the outset and mr. ducey you can go first. >> i want to thank graham and channel 12 in srp and the own -- arizona republic for this form tonight. it was a good day in the ducey campaign women and the national federation of independent businesses and the arizona chamber of commerce and industry have endorsed our campaign. kickstarting the economy is what animates my reason to run for governor. i've spent my entire adult life in the private sector and business building a brand now that is known around the country and now the world. i have been the state treasurer for the last nearly four years managing $12.5 billion in state assets that by any measure are

in better condition and growing faster today than they were when i came into office. i want to take those skills, that businesslike approach and fresh entrepreneurial energy to the governor's office. the reason that i want you to vote for me is the plan of action that i have for our state, to kickstart our economy so jobs are plentiful, to reform k-12 education so that there are no winners or losers inside these classrooms and to be the most innovative and inventive governor when they present new ideas to the federal government so we can take charge of the direction of our state. if you have questions about my campaign you can go do doug ducey.com or doug ducey on facebook. thanks so much. >> thanks so much. fred duval. >> thank you for your attention this evening. i so look forward to serving as your governor and leading arizona to astronomy future.

here at the design impaired is that i think are important. how do you create the most energized business growth in the country and how do you create the best improvement in the k-12 space in the country in three howdy create an inclusive and marmot for everyone feels welcome and has a seat at the table? the most important is we have to get back into k-12 funding to ensure students have success and it's an area where we disagree in the signature issue of my campaign. i would like to finish with the story. i came to tucson in 1963 and my father was asked to start a medical school at the university of arizona. the legislature only gave the university of arizona $1 million to start the school. we had to raise the money. we drove to a gas station and the guy filling our tank, was a long time ago not to ago not someone is says are you that doctor trying to raise money for the medical school? he goes into mechanics bay and six guys come out with a greasy folgers cans with tests. he said we have to do our share and i'm hoping all of you will do your share to build the ap

app -- educational opportunities to grow education for our economy. >> that wraps up our debate for tonight. thank you to our sponsors, thank you to the audience hear on tv on line and most importantly, thank you to our candidates. [applause]

>> it's a conspiracy possibly criminal by leaders the many scandals aspects from the performance top of the strangers for supposedly wait time goes to the harassment of employees trying to rectify the situation to the destruction of documents and electronic records to the very real harm done to the health of thousands of veterans unable to receive medical care. nothing is more scandalous than the fact that 293 veterans died in phoenix and even now right here in this report the inspector general tries to minimize the damage done and the culpability of those involved by stating that none of the test can be tied to treatment delays. i've read the report many times in several things bother me about it. throughout the case reports the authors have downplayed facts and minimize harm. this is absolutely true in cases of six and seven why have direct knowledge that after reading these cases it leaves me wondering what really happened

in all the rest. for example and case number 29 how could anyone conclude that the deaths were not related to the delay when a patient who needs an implanted defibrillator to avoid sudden death did not get one in time and why was the cardiac death case excluded from the ig review? in addition a critical element to proving this was a conspiracy with the potential tampering with the reporting where the electronic waiting list from the beginning the igs own data showed there was the difference between the numbers reported to washington and what the numbers actually were on the secret electronic waiting list. the ig clearly minimize the significance of this crucial point treating it as a trivial clerical error and touting how quickly the department corrected it. rather than exploring who tampered with it in the first place. adding it up the ig report states 4900 veterans were waiting for new patient

appointments at the phoenix va. 3500 were not on any official list in 1400 brontë nonreporting secret electronic waitlist. 293 of these veterans are now pcs. this vastly exceeds my original allegations that up to 40 veterans may have died while waiting for care. the ig says it is not charged with determining criminal conduct. true, but neither is the charge of reports designed to downplay potential criminal conduct designed to defuse and discourage criminal investigations or diminish the property of public outreach. as this report is a whitewash and at its worst a feeble attempt at a cover-up. the report to liberal uses confusing language invents new and realistic standards of proof ignores why electronic waiting list was not reporting accurate data and makes misleading statements. in addition to in addition to tim's minimize bad outcomes by downplaying the information and

protecting the va officials responsible for the scandal just reinforces the long-standing culture of circling the wagons to let the claim story or patient died of the veterans community has had to suffer with four years. ..