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[inaudible conversations] >> watch this program again later on our website c-span.org if you missed any of it. president obama will host a leader summit in september to address global refugee issues focusing on the treatment of asylum-seekers at u.s. airports and border crossings. >> today on q&a at 7 p.m., "washington post" executive editor marty baron talks about the changes at the post since he took over in 2013. he discusses the depiction of his work as editor in chief of "the boston globe" in the spotlight. tonight on booktv books about terrorism.

>> all of this tonight starting at 8 p.m. on booktv on c-span2. >> booktv on c-span2, 48 hours of nonfiction books and authors every weekend. here are some featured programs this weekend.

government abuse is largely one-sided. i think there's a couple of reasons. when i started this i care about free speech and for a minute. i'm a bit of a libertarian when it comes to this and i have no allegiance to one party or the other. i went into this, i've written a lot about the abuses on the left formally called in "the wall street journal" but i assumed i would fight a whole bunch of stuff on the right. i didn't.

>> joint in a conversation with your phone calls in tweets beginning at noon eastern on c-span2. go to booktv.org for the complete weekend schedule. >> some congressional news in the hill. kansas republican congressman is projected to lose his republican primary making in the fourth house incumbent this cycle to be defeated in a primary.

he helped push a former speaker john boehner was defeated by physician roger marshall and a primary for safe republican seat. he joins democrat of pennsylvania governor, republican and virginia republican who all lost primaries this year. you can read that in the hill today but we have more now from a reporter watching this story. >> joining us on the phone, the topeka capital journal.g us on good morning. >> guest: thank you for having me. could you tell us the result of what happened what can do this election? >> guest: the short answer is roger marshall one and tim huelskamp laws. along and is much more than that. which is the last time was a strong repudiation of his brand of politics that uncompromising conservatism. that is open them up to accusations of being an obstructionist, agriculture, the biggest the largest economic

sector in the district relies on legislation from washington and his removal from the accounts committee has opened up several bills, came back to bite him. marsh about this message of compromise of being willing to work with moderate republicans a group tools can often because with. marshall's message resonated yesterday. >> host: if roger marshall want to how much did he win by? >> guest: he won by more than 13,000 votes and 13 percentage points. to the extent there was any prediction about last night it was that they would be close. this is what the polling had shown. that is what both sidesown and expected. i spoke to both sides prior toos the result and both sides expected a close race. and, frankly, it was not thata s close last night. that a stunning sizable victory from roger marshall.ha

>> host: did we hear from huelskamp yet about last night transferred we have not be. he briefly opened up his watch party to reporters last night but then had them removed. pretty early on in the results as they started coming in. he asked reporters to leave soso his watch party was closed press and i have not heard back from the many messages i left. >> host: as far as roger marshall tell us about him and his political background. >> guest: there's almost no political background frankly, as no time in elected office. this will be his first election if he wins in november he is an obstetrician, a hospitalve executive as well. again with no elected office background. he used that as many challenges do to his advantage.

making the argument huelskamp has a 20 year career in politics, he's a career politician and that marshall brings a much-needed fresh face and it was really his argument on compromise that he will be someone willing to compromise, something huelskamp is criticized for not doing. that was his biggest stance throughout the race. in a race the two candidates essentially agreed on most issues. it came down to personality rather than policy. this issue of who would bring ag fresh look and he would work with the other side and actually accomplished things. this was not a question ofas noa conservatism.. this was a very conservative district and huelskamp was conservative to think that district very well and still does. latest uncompromising nature is really the factor that brought the win for marshall last night.

>> host: on the phone talking about this defeat of tim huelskamp, justin wingerter of the topeka capital journal. thank you for your time and informing us about this race. >> guest: thank you for having me. >> another item in the hill today looks at called by two democrat senators for texas senator ted cruz to hold a hearing on former rival donald trump's call for russian to obtain and we can replace personal e-mails. senators chris coons of dover and sheldon whitehouse of rhode island sent a letter to senator cruz calling the republican nominee's remarks dangerous and irresponsible. we ask you to conduct an oversight hearing. last month house minority leader nancy pelosi spoke to the national governors association meeting about congressional and

state relations. she suggested that the two could work together more effectively. >> okay, ladies and gentlemen, i think we're ready to begin the people take your seats. welcome back, governors and staff people. we are honored to have your back for our last session here, our last plenary session this afternoon. we've had a great day. yesterday was great, the presentations were wonderful and that will continue this afternoon. we are honored to have you all there and back again.

again as always we thank governor branstad for his hospitality here in the beautiful state of iowa, for the nga staffer helping to organize and coordinate this for governors for your busy schedules to be a thank you very much for taking time. yesterday with the distinct privilege of having an opportunity or from senator grassley, the chairman of the judiciary committee and i was seems to be. today with a great opportunity to hear from a methodist in which congress than, congressional leader, democrat leader nancy pelosi. we are honored to have her here with us and for the formal introduction i will turn the tide over to the vice chair of the national governors association, governor terry mcauliffe. >> thank you all for being with us this afternoon. i am honored to introduce our next guest. she has been a friend of mine going back almost four decades. she does a mother, grandmother, it has been a great leader for our country for so many years and a real advocate for working

families in our nation. for 29 hoosiers represented the 12th district of california. she is let the democrats in the house for more than 12 years serving as a house democratic whip, speaker and now as house leader. the breath of the work and accomplishments is too expensive for me to go through but let me give you a few highlights that she's been involved in that affects all of us as governors. she led the house passage of the american recovery and reinvestment act in 2009, literally saving millions of american jobs. she's led congress in passing child nutrition and food safety legislation in 2010. she has made energy security our flagship issue, raising vehicle fuel efficiency standards and making a historic commitment to american homegrown biofuels. i know you understand that, governor branstad. she is also helped pass a new g.i. educational for veterans of the iraq and afghanistan wars,

and this increased services for veterans, caregivers as well as the veterans administration. she's been born into a strong family tradition of public service. on behalf of the governors, it's my honor to introduce nancy pelosi, the leader of the house democrats. [applause] >> good afternoon, everyone. it is lovely to be here in the heartland of america. what a beautiful place to be in iowa. is this the end of the presidential or the beginning of the next presidential? i don't know, governor branstad, what do you think? never stops. it's a constant. i was coming here from omaha and it was so beautiful, sad, but

sadly beautiful to see the signs of reverence, flags flying at half-staff along the way, and then coming by the iowa veterans cemetery. and ever to be grateful for how fortunate we are to have those who would be so courageous both globally and at home to make us the home of the brave and the land of the free. and so it is wonderful to be here. governor, thank you, again and again, for your hospitality and your leadership. terry mcauliffe, thank you for your generous introduction. i will accept your words; they were compliments to me on behalf of all our colleagues in congress with the courage to go forward on this legislation, and, of course, the great leadership of president barack obama. i congratulate you and governor sandoval for your new leadership, stepping into the chairmanship in about 45 minutes or is it just as long as i speak? as long as i speak.

again, governor herbert, thank you for your tremendous leadership. i remember when you came in with governor mcauliffe to my office and talked about how we could work together, federal and state, bipartisan, nonpartisan cooperation. and i thank all of you and governor herbert for his leadership on esea legislation for education on fast track. there were two things you mentioned that they are law. thank you for making all of that happen. and to the staff, i also thank the staff for the hospitality extended to me here. we may not agree on everything, but i think we agree on one thing: the leadership and dynamism of america's governors are one of the greatest resources of america's democracy. do you not agree? that is an applause line. [applause] i feel very honored to be invited by the great

governor terry mcauliffe to be here, or to be introduced by a great governor. as he said, we go back a long way. he was practically like a teenager when we were all working, had been working for a long time in politics. but i am so proud of his leadership in the state of virginia, creating jobs, improving education, and in so many ways making a big difference. and i know part of the strength he draws, in experience, he brings is what he draws from so many of you. so thank you for being such a great leader, terry mcauliffe. again, we may not agree on every subject, we are united in a common purpose, and that is a purpose encapsulated in governor herbert's theme, finding solutions, improving lives. we know that a strong state-federal partnership is essential to creating durable and meaningful solutions facing our nation today. i know we have a time limit, so i'm going to try to stick to my notes.

we are more successful when we draw on the best practices that flow from states, the great laboratories of our democracies. that's an applause line, too. [applause] as we discussed state-federal relationships and partnerships, i want to acknowledge some of the subjects of your meeting. thank you, governor branstad for your focus on food and agriculture and biofuels, a priority that has taken the lead on. i am reminded that, when i was speaker of the house, we gave the congressional gold medal to norman borlaug. president george w. bush came and honored us by making the presentation, and that was one of the days when we recognize the greatness of this state to feeding the world. it was an honor for you to join us when we unveiled dr. borlaug's statue a few years later in statuary hall. as you may recall, we discussed

our shared support for the renewable energy standard, we still do. there we go, and understanding the relationship between food, agricultural and biofuels. i know that has been a part of yours, and i hope to read whatever is allowed for me to read to have the benefit of your thinking. i'm, of course, grateful for another great governor from iowa, who has been a leader on these issues, secretary vilsack. so iowa has been very generous to our country in all these respects. i know you talked about opioids, and i just want to say this. i thank all of you for your leadership on this subject, but just to put what happened in perspective. this was a good bill. it was bipartisan, as it has been mentioned. it has good policy in it, but we really need the money right now. in fact, we have needed it for a while. we did a budget agreement last year. and, in fact, when we do our appropriations for the following year, there are

priorities that are established, a cap that is placed there. but at that time, we did not realize we would need $1.1 billion for opioids, $1.9 billion for zika, or hundreds of millions of dollars for flint. in the course of time when these unusual emergencies occur, they are emergency spending. so it has been over four months, well over four months, since the president asked for the zika money and a long time since he asked for the opioid money. so our disappointment almost to the point of not voting for the bill was it's interesting policy, it's good, it's bipartisan, but it does not have the money, and it will take months to get the money. and why should that be? and then, when we get the money,

it will be in a budget that's a lamb-eat-lamb budget, everything in there is about education, it's about all the priorities that are necessities, that are investments that actually grow our country, create jobs and reduce the deficit. so we have to compete for the money, and i just don't think that we should. so hopefully we can all weigh in so that at some point, much sooner than the appropriations process, we can have this emergency funding, even if we have to pay for it not as an emergency that we would appropriate it immediately even if we have to fight over where the money comes from, but not to kick the can down the road. so, congress has refused to provide the robust emergency resources urgently needed. governors of both parties have been some of the most powerful voices for the need for congress to act on these public crises. you know, governor, the need in puerto rico for the

zika funding. it is long, long, long overdue. how could it be? your continued leadership, of all of you, and advocacy for meaningful funding to fight zika and opioids will make a critical difference when congress returns. funding is very, very long overdue, and i just don't know why. your agenda here, going onto some other subjects you've talked about, is an agenda of the future, and i salute you for that. and much of the future will depend on our ability to take bold action today to ensure that our nation leads in innovation in this century. we must ensure that american workers, american products and american ideas remain number one in the global economy. i want to just tell you for a moment, and then spring from it, about the innovation agenda that we put together, well, we started it 11 years ago, presented it 10 years ago. it is called the innovation

agenda. we went all over the country in a nonpartisan way, academics, entrepreneurs, venture capitalists, union members, students, every aspect of an economy and a society saying give us your priorities how to keep america number one. from that we passed the groundbreaking competes act that created the arpa-e initiative to power high-risk, high-reward clean energy research and technological development. we invested in stem, which you all do, now we call it steam, we've added the a of the arts, k through 12, community colleges, making college more affordable for all students, providing the largest college aid for g.i. since the g.i. bill. we expanded broadband across rural areas, strengthened initiatives of the department of agricultural and commerce and we modernized sbi, our small business investment and other small business initiatives. i tell you that because it made

a tremendous difference, but you know it's 10 years have gone by and the world has changed after the first innovation agenda. ten years later, we must take inventory of what is needed for innovators to thrive. the progress of cloud computing, data storage, again, more broadband technology, smartphones and precision medicine over the past decade have put new possibilities within our grasp. we must seize the full potential of innovation and technology for all of america's families and communities. this spring we've, again, initiated innovation agenda 2.0, convening dozens of listening sessions all over the country, dozens to solicit, in virginia, i could go around and tell you the states we have been in. as we did in 2015, we listened to all the folks, experts, academics, etc., and today, i

want to give you an introduction of what we heard and confirmed to invite your views on, i want to invite your views on how we can work together at the local, state and federal level to keep america number one. it all is predicated on the idea that everything starts in the classroom. right, governor malloy? innovation begins in the classroom. education is the greatest investment a family or a nation can make in its children. and thank you, governors. again, i thank governor herbert. i thank you all for your leadership helping congress pass the every student succeeds act, very important. as we talk about investing in education, remember this, this is a fact, you might think some of this is opinion. this is a fact, nothing brings more money to the treasury to

reduce the deficit more than educating the american people, early childhood, k through 12, higher education, post-grad, lifetime learning for our workers. that's why all of that is so important. and again, we must make college more affordable, reducing the burden of debt, strengthening our promise for world class education, once again, for our veterans. the prospects of big data and information technology have put us all on the doorstep of tremendous advances and again, all this has begun in the classroom. but for everyone to participate in it, they must be educated to it in the classroom, big data, information technology is a solution to every challenge that we all face: national security,

homeland security, clean energy, transportation, agriculture and food, smart cities and housing, education and diversity, any subject you can name. we are in a new and different place because of information technology and the cloud and the big data. thank you, thank you, thank you governors for advancing computer science education, because that is essential to our success, and indeed the success of every person and every family in our country to participate in that success. we are also very proud of president obama's computer science for all initiative proposing $4 billion for states to increase access to k through 12 computer services, and computer science. we must again, i keep making this point, be inclusive.

we must be sure that every community and every child has access to high-speed access on broadband and the digital literacy necessary to participate in this progress. you know we have an opportunity gap in our country, some of it springs from an education gap and it will never be solved until we address the education gap, but the education gap is definitely affected by the technology gap, the digital divide, and we have to reduce that in order to not only have people reach their aspirations but to keep america number one. as we embrace the transformational power of information technology, we must also keep a sharp focus on the issues of privacy and cybersecurity. two of my credentials, one, i am an appropriator, so i understand that culture when i talked earlier about the money coming from here and there, and i am also the longest serving person on the intelligence committee in

our country. and so i am very concerned about the cybersecurity issue. i thank you, governor mcauliffe, for putting this issue front and center with your upcoming dga chairmanship. are we ready for that? we must give priority, serious investments, energy, research and engage in public-private partnerships to build america's infrastructure. building america's infrastructure, it has never been a partisan issue, recently somewhat, but it doesn't have to be a partisan issue. you know better than anybody the deficit that is there and the trillions of dollars, the opportunity that is there to build infrastructure, to create mobility, to move people to and from work, to and from home, school and the rest, product to and from market where time makes a difference, especially in agricultural products, and this infrastructure will create jobs from day one because of the

construction that is necessary. we must have a tax credit to incentivize and enable the creation and deployment of cleaner, more efficient energy technologies. we must establish innovation hubs. and this is really important. i want to hear your views when we have a chance to chat. in every region of the country, some of it just gravitates. there has to be a decision made to have them in every region of the country. lastly, we must confront the obstacles facing enterprising americans who want to take a chance on an idea, an innovation, a new business but they are curtailed by a lack of funding or whatever it is, there is a path to take them out of that valley and have them skip over it. working together as strong state and federal partners, we can ensure that america remains the global superpower of innovation and entrepreneurship. we have a proud heritage as americans, mentioned some of it

earlier today, our sense of community and our obligations to our troops. i always think of the vision of our founders, that we must, that we are very blessed with the sacrifice of our troops, that we are grateful for forever and the aspirations of our children. we have a proud heritage, a heritage which has always focused boldly on the future. it is in that proud tradition that president kennedy challenged our nation to go to the moon more than 50 years ago. i know you know all about that or maybe you weren't born, but you have read about it. for me, it was my youth, for you, it's history. and he said this at the time, which applies, the vows of this nation can only be fulfilled if we in this nation are first, and therefore, we intend to be first. in short, he said, our

leadership in science and industry, our hopes for peace and security, our obligations to ourselves as well as others all require us to make this effort. that is what he said. i say from the declaration of our founders to humanity's first step on the moon to the present day, america has shown the world what it means to innovate, to lead, to be first. i thank you all for your leadership in this regard, and i thank you for the opportunity to share some thoughts with you this afternoon. thank you so much. [applause] >> my understanding is that we have some questions now or do i go too far into the next administration of the governor'' association? >> well, thank you, leader pelosi. i think we have time for a couple of questions. i know governor herbert has indicated he has the first question. >> thank you, leader pelosi. we are honored to have you here with us. >> thank you, governor.

>> thank you for your invitation to come and work with you and we appreciate the opportunity, terry and i, to meet with you. we have been working very well as a bipartisan organization. >> wonderful. >> we think we are a good example of bipartisanship here at the governors. and you mentioned a couple of areas where we have been successful, the every student succeeds act, very bipartisan; the transportation fast act, and we have a long history of that. we go back to president bill clinton's administration, and we had welfare reform that came out of wisconsin, michigan and utah, and helped us as a country, i think have some significant endroads there. my question to you is what do you see in the next congress, what are the areas of bipartisan concern that we, the governors, can get involved with and help you in the congress to get some things done in this next upcoming congress? >> thank you, governor. in terms of what are the possibilities in terms of our working together next congress, i always come back to

infrastructure because no matter what we have done, and we have done some good things, we need to do more. and a lot of it is predicated on the fact that science and technology are moving so quickly. as i said before, it has never been a partisan issue, so we are trained to think in a way of nonpartisanship. what we would like to do is actually have nonpartisanship in the suggestions that come in. that's how we used to do it. we would say if you want to compete, well, that was in the days of earmarks and we don't have it anymore, but if you want to have your initiatives included in legislation, show the nonpartisan aspect of it in your community, what the engineering and technological support is for it, and what is its impact regionally, regionally, not just i want mine for my county and i want mine for my county, but

what is the impact regionally? so this is nonpartisan and it also crosses regional, political, when i say political i mean county, state, city, whatever distinctions. so i think that is an endless opportunity. tied to that, related to that, is the tax reform, because, as you know, that first of all, we want to reform the tax code. we want to simplify it, make it fair, make it do the job it sets out to do and there are certain aspects of it like build america bonds, which were very helpful in our building infrastructure in our country, some of it springing from the american reinvestment and recovery act. but also, i know a subject of concern to you is the tax deductibility of bonds and how bonds are treated, so infrastructure and tax reform.

we can do them piecemeal. you know, we can do one and then, but if we could do it comprehensively and in a nonpartisan way, which i think we should be able to do. again, talking about what we could do, i hope it won't take until the next congress, but we have the e-fairness legislation, which you all come to see me, the mayors come to see us, and the rest. there is a bill, the chaffetz bill, which would say where you purchase something, where it is delivered is where you pay the tax. chaffetz is a republican chairman of one of the committees. we all support his initiative. i was trying to get it in the omnibus bill last december but the chairman of the committee had a different bill, that would be the judiciary committee. so we are continuing to make

that fight, but our support for that is totally nonpartisan. we rejoice in the fact that we could do that. so how are some of the things we are doing affecting you in terms of building infrastructure, how do you pay for it, and by the way, how do our decisions at the tax code level affect your ability to collect taxes from internet sales and the rest? i think there are plenty of opportunities, and you may have some suggestions, again, continuing on the education path and as i have mentioned again and again on the infrastructure path, especially now that we know we have to do things in a way that is greener if are going to be number one, if are going to keep the air clean, if we are going to recognize the connection between agriculture, energy, and the rest.

so we have tremendous opportunities. and i come right back to what i said earlier, information technology, big data, just subject every challenge that we face to what that computation and that speed and the rest can make a tremendous, tremendous difference. so i think that will sort of melt away some of the partisanship, because what we're talking about is not partisan. none of this has any ideological bent, right? we all want to take advantage of what science and technology can offer to help solve our problems. if you have any suggestions, priorities again, you brought your priorities before, education and transportation, and you got those done. thank you, governor. >> thank you. governor branstad? >> first of all, i want to thank you for the role you played in honoring dr. borlaug. >> thank you. >> it was one of the highlights for me to be there when that statue of dr.

borlaug was unveiled in statuary hall. and also your support for renewable energy, which is very near and dear to my heart and the people of iowa appreciate that. and to some degree, you have already touched on this, but tax reform, comprehensive federal tax reform is an important issue and it obviously affects us because, and you talk about this a little bit, that tax deductibility of state and local bonds. we are concerned that the congress in doing comprehensive tax reform recognize the important role of governors and the states have in terms of controlling our own state tax authority and not being preempted. so i would just ask you to see what you can do to make sure that, first of all, that we do see comprehensive tax reform and that we do it in such a way that

it does not curtail the state's ability to meet our obligations. >> thank you, governor. i look forward to working with you on that. one of the things that is out there is to have a limit on what you can deduct. and when they have a limit on the deduction, that has an impact on the state and local bond part of it. so let's continue to work together because you know, it is one of those things about the tax code. there is probably nothing that arouses more comment, shall i say, than when we go to do that. and it has an impact as we know. and i want to congratulate you because the reason we were able to do norman borlaug's statue was an act of the legislature of iowa, because that is a decision of the state as to whose statue will be in statuary hall.

i would like to take a little credit for being speaker when we gave the gold medal to norman borlaug. he was still alive then, too. it was beautiful. what a great man. >> last night we had an event at the borlaug world food prize hall of laureates. if you get a chance before you leave des moines, they converted the old main library here in des moines to the hall of laureates. we had xi jinping there when he visited in 2012. and they spent over $30 million to restore and renovate it. anyway, it's one of the wonderful things going on in des moines and that along with the papa john sculpture garden. we hope you will get a chance to see those before you leave town. >> thank you. i hope to and if not, i'll be back. but let me say thank you, iowa. thank you, all. because what dr. borlaug did was biblical to feed the hungry and the world through science in a new and different way.

so beautiful. thank you. >> governor malloy? >> thank you. it is great to see you again. >> lovely to see you, governor malloy. >> it is always great to be with you and fun to be with you. so i just want to say that. you touched on a number of subjects, not the least of which is the opioid situation, and i know you understand this that that money is necessary today, not tomorrow. in fact, we're way behind where we need to be in this fight against opioid abuse. a person dying every 20 minutes in the united states as a result of overdosing on opioids, and the problem is getting bigger as fentanyl is being introduced on a broader basis and used as a substitute for opioids. so anything you can do to further that. and i agree with you. this is an emergency as epic as a great flood or a great forest fire or great damage to infrastructure that might be caused by some other means,

and so anything you can do, we would greatly appreciate it. i know you get it. so we just need your help and you're pushing. and you're right, don't stop. on the transportation side, that was my question that they assigned me, so you and i made the point. so let me just get to transportation. one of the outstanding issues on transportation is that we have a five-year plan that was longer than many thought it would be, but only funded for three years. can you comment on where we go from here? >> i think we have to think in the bigger way. we really do. we had to accept what we had to accept there. but when you are talking about the infrastructure that we are talking about, the short fuse, it does not work. these projects take a long time and we have to know that there is something after because every project is not just an end in itself. it's part of a regional plan. and so i think it would never be

too soon for us to start working again on an infrastructure bill. we talk about infrastructure and people think transportation all the time, and that's really important, whether we're talking about roads, bridges, high-speed rail, mass transit and the rest. and that's essential. it is very important. but we are also talking water. some of the water systems are over 100 years old. they are made of brick and wood, that's not even hygienic. i mean, from a health standpoint, they need to be changed. so much from when i first came to congress and we were doing our transportation bills, now it is about broadband and the technology, the infrastructure to enable us to have a broadband for the future. so it is not just about what our immediate needs are in terms of transportation one way or another. it is about, again, water

systems, broadband, and so much more. so the opportunity, let me take it away from just strictly federal and local expenses. i have been told by some investors and the rest, major-league investors, that the biggest emerging market in the world is building the infrastructure in the united states. there is so much need, over $2 trillion, some may say $3 trillion, by the american society of engineers. perhaps it's in the trillions of dollars, so we have to divide, there is never going to be enough appropriated dollars, even public-private, state-federal match to meet the challenges that we face, so we have to be thinking creatively in how we do public-private partnerships, how we perhaps have an infrastructure bank to leverage the dollars that we can invest to attract other dollars

to get the job done. so this really challenges our imagination, and again it's related to the tax code as well. some had suggested repatriation of funds to come home at a reduced tax rate to be used for the infrastructure bank in order to facilitate the investment that we need to make. so again, it is not to be limited. we have to think much more creatively about bonding, about investment, public-private partnership, how we use resources that might not readily be available but for that purpose would be. >> let me just say that there is bipartisan testament to the need on the transportation side. every round is heavily competed for by every state in the nation. we have everyone on record saying that we need help in building the transportation

infrastructure that will allow us to compete with europe and asia. so any help you could give would be greatly appreciated. >> i thank you, and i welcome any suggestions you may have on the innovation agenda, on the infrastructure, and they are all related. but coming from where i do in northern california and seeing this all over the country, i'm telling you, we have a new, fresh way of looking at all of these things through the eyes of information technology and big data, and again, it is all of the things we want it to be in terms of mobility and cleaning the air and the rest. but from day one their jobs, their jobs, and we need the education to be commensurate with it, and we need the investments we make in education to be aligned with what the job market needs so that at the same time, we are lifting everyone up in our society. >> i think we have time for two more questions.

my question is related to cybersecurity. obviously, it is a big issue for all of us at the federal level, at the state level. we have so much data at the state level. we are all being attacked. how do you see a framework we could put together, where the federal government works with the states to make sure we're included as we move forward on this? >> thank you for your leadership on this subject, and thank you for your question. we have put out resources to the states for cybersecurity, for homeland security. i think it would be important, i know it would be important for us to work together because some states just take the resources, but they don't have cybersecurity as a priority in how they allocate their resources. so perhaps, we can work together to figure out how to put forth some formula with flexibility, of course, that says you really have to be investing in this. and again, the technology, advancing the way it is will facilitate some of that.

so it is not a drag on the homeland security but an enhancement. the provisions that we have now in the law, and i know you are familiar with them, i think could use some, shall we say, just sitting down and going over them and saying what actually works best so that states know that these resources are for this purpose and the federal government knows what the states need. again, in the intelligence world, we always talk about needs and leads. what do we need to protect the american people? you may know something if we tell you what we think you should do, you may have a lead that is better. so i'm not absolutely assured, and maybe you are, that communication has been what it needs to be to make sure that

you get sufficient fund but that those funds do not ignore the cyber piece of homeland security. we are all vulnerable. it is a tremendous security exposure that we have and i know that the states, in your great laboratories of democracy, privacy, it's been since the beginning of our country. privacy and security, how do you balance them? and that is the job that you have right on the frontline in your states. if i just may say on that score, i have always, again, as an intelligence person, always talked about that balance. benjamin franklin said, if you don't have both, you don't have either, security and civil liberties, privacy, but i think right now a third piece has entered into that, and that is

security, privacy civil liberties and american brand name. i don't mean just so we can sell american products overseas, but i mean that we must sell american products overseas because we have to be the categorical great technology of the world. if people say, well i'm not going to buy american because they have a backdoor and all of that, then that diminishes our security, so i think we should all just recognize, as we balance the equities, the importance of america prevailing in the world, in terms of who dominates, in terms of technology being sold throughout the world, but again, let us at some point sit together as we did before and talk about the specific language on some of the mandates that go with or don't

go with the cyber security. but it is a big issue. it is a gigantic issue, and i thank you for taking it on. >> the last question will go to our newest governor, john bel edwards from the great state of louisiana. >> now, you did not say i'm the best governor in the history of louisiana. >> i said the newest. >> you're the best in my eyes. >> he will tell you that later. >> leader pelosi, thank you for being with us today. >> thank you governor, and congratulations to you. >> consistent with the idea that states are laboratories for democracy, the national governors association promotes flexibility, but it seems like often from congress, we get a one-size-fits-all approach without the flexibility that we would need to be effective laboratories, probably because we can't be trusted, or that is the sentiment with a lot of folks in washington and congress. and so how can we move past those trust issues and get to where we can have fair accountability but also get the flexibility that we need to shape these programs the way we

think we could deliver the best results? >> so, terry, this is the newest governor coming on with the most traditional question that governors always ask about flexibility. so you learned very fast, governor. let me just say the balance, again, that needs to be there. and that is, we write a bill for a purpose. for example, say title one for children and economically disadvantaged areas or something like that. so you expect that the money that is sent would be for that purpose. it's not even a question of trust. it is a question of what is the purpose of the funds that go out. can there be more opportunities for waivers adjusting to individual situations and states and the rest? i think there is an attempt to do that but if you think for a minute that it is about lack of

trust then we should address that. it really is more about let us address the purpose for which this was legislated and appropriated, if we're talking about funds and how we can have the judgment, the discretion being used in a way that benefits the children. i guess with everything that we talk about here, what we want are results. that is the point. that is the classic question. how many times have i been here over time, or have i heard that question? clearly, we have not addressed it sufficiently because it continues to raise its head. but it is about maintenance of effort, that we don't want to send money. is it going to support something that was there before and not anymore? in any event, it is a challenge

in writing of the bills to determine, what is the purpose? what are the resources? and are there other needs that the governors have that we are not addressing that they want the flexibility to go into this pocket? so again, this is about the state-federal partnership. and i, again, respect that you are the laboratory of democracy and that great things spring from the states. many of the things we have at the federal level started in the states including the affordable care act in massachusetts. i want to just acknowledge governor padilla for his leadership. he has so much going on there. it is so wonderful that you are here, governor. >> thank you, leader. it's not a question, it's just that i want to say to my colleagues here and to everybody here what i told you privately, that i thank you for your leadership.

helping puerto rico out of the crisis we inherited. it's not a perfect law, but it's something that we need. and you have been a great leader. puerto rico appreciates your leadership, nydia velazquez's leadership, pedro pierluisi's help. paul ryan helped, so thank you on behalf of the people of puerto rico. and i have to tell my colleagues here that leader pelosi and puerto rico are great friends so at any time you are in a state of need, you will find her a great friend. i am a witness of that. >> thank you, governor. we do listen. so i want you to know, we do listen, and i do listen. i did enjoy being with all of you today. thank you for your leadership and thank you for your bipartisanship, which is very important to our country. congratulations and thank you, governor herbert, for your leadership. good luck and congratulations to you, terry mcauliffe.

and now as i end my remarks, i think the new chairman should begin, so i'm leaving. thank you all very much. >> let's give the leader a great round of applause and thank her for her leadership. [applause] >> today on q&a at 7 p.m. come "washington post" executive editor marty baron talks about the changes at the post since he took over in 2013. he discusses the depiction of his work as editor-in-chief of "the boston globe" in the movie spotlight. tonight on booktv, books about terrorism.

>> back now to the national governors association summit meeting in iowa. this next discussion is on challenges to local community resources and public policy. >> we will talk about something that's important to us as governors. i know a lease in utah the changing demographics, changing of the population makes, immigration, changing of the economy is certainly impactful. it's sometimes surprising, sometimes stunning what's taking

place, but the knowledge of us changes, those demographic shifts that are taking place will also become a more effective governors as we, in fact, engage with our legislators and local communities, business and civic leaders. this is an important discussion, talking about the demographics of the state. and for the effort -- weird it's got to? we will turn the tide over to scott and scott can conduct of this, the session. i'm going to excuse myself for just a minute and i will be right back. >> thank you, governor herbert. i think most of you know governor brian sandoval was going to oversee the session and he asked me to step in. they had an unfortunate situation with an event, an emergency event in nevada and had to return as i think you know. i am delighted to offer you a governor sandoval to step in. fortunately, i was familiar with the session so i'm able to talk

a little bit about this particular session. it's called "the next generation: a 360-degree view of changing communities." the reason we put this recession in is because it's kind of under the news you can use, information you can use type of template. because we've been talking about demographics and aging population and all these things for years, and the worry that we have to deal with this, states have to deal with this, governors have to deal with this. ..

so i'm really excited that we are doing this and i know governor sandoval wanted to be here because nevada is seeing this change right now. they are there. they not only have the aging population but explosion in the southern part of the state of las vegas area of k-12 population and also exceptionally diverse k-12 population. many of the students coming in who english is not first language. so nevada is living it. so what we want to do is create an understanding in this panel of some of the issues, needs of what is going on with regard to demographics. so obviously there are a lot of issues that are coming up here with skills gap and other things and demographics has a direct impact on all of these things. on behalf of governor sandovali

welcome you to this session. let me introduce our speakers here today. we are delighted the expertise in the room. i want to start with tom gis gispsie. i always say you should have a state economist and state demographer because they give you a key indicator as to how to go forward. he's going to talk about not only the downside of the aging population, we shouldn't look atate as doom and gloom, as a negative and finally lilian lowery, executive director of future ready, she is is former

chief officer of two states, both maryland and delaware. i will very briefly say a few words about the budget and fiscal issues under demographics that we should think about. let me mention one thing too about my personal experience that tells you how critical demographics are. when i was in virginia state government, we had an elaborate process that went on for months in which we determined the estimate over a ten-year period of the prison population. always we did that to determine how much we wanted to appropriate for prisons and how much in prisons to build, but what was fascinating about it after going through this methodology, one of our demographers said you know what, i don't know why we spend hours and weeks on this, all we have to do is look at demographics and determine how many young men between 15-25 exist at any given

time and we can extrapolate the prison population. sounds rather simple. tom is thinking, well, that's a little simple but demonstrates how demographics was such a key factor in just one of those budget-driven types of decisions of the state level. so i'm going to turn it over first to tom, he has some sides that he's going to go over with us that you'll find interesting about the aging of the population and the financial implications of the changing demographics and diversity we are starting to see explode in the united states today. >> thank you, scott. normally demographic change proceeds at glacial pace and now we are seeing change that affects public services, demand and budgets. the big one, the really big one is aging. we are getting older and we are getting older as society.

this is not a normal thing. this is actually the first time in the history of human societies that we've seen something like this happen and it's happening on pretty much global scale. many countries of the world are experiencing this. certainly the united states is not the oldest but we are experiencing this. by 2020, that's only four years away, the united states and many of our states will have more people over age 65 than we have kids in k-12 education for the first time ever and the 65 and older population will continue to grow much more rapidly than k-12 age population and right now we have record numbers of people who are retiring and receiving their first social security check. next slide. in addition to aging, america is also growing more racially and

ethnically diverse. we will no longer have a majority race, all of the race and ethnic groups will be a minority in some respect, that we are changing rapidly as a society and this also has an age component because our children are much more diverse than our older population. education is, of course, a critical element in our future and our future economic growth and here we are seeing large-scale differences and performances by race and ethnicity and also by poverty and nonpoverty dimensions, and not only are they large differences but the highest-performing groups are still not performing as well as

we would like to see them perform. we really need to ratchet up our performance across all of our groups in society and this raises questions right now -- right now our performance raises questions about future economic growth. growing numbers of jobs in our society because of the technological change and other changes require something more than a high school diploma, they require an associate degree or a college degree or some kind of specialize training beyond, beyond the high school level and this is increasing over time and -- and the educational requirements are expanding as we move into -- into the future but our children may not actually be prepared to perform the jobs of the future as we saw. state revenue growth will suffer

if we do not meet the demands of jobs in the future. aging is already having impact on state government budgets, medicaid is in many states the fastest-growing component of the budget and right now medicaid and k-12 education is begin to ning to squeeze other components of our budget. this is going to increase dramatically particularly after 2025, unless you think it's a long ways into the future, that's only 10 years. after 2025 many of the baby boom generation will approach 80 and we will see rapid rises in dementia and chronic-health issues related to aging and unless we are prepared to that day, that is really going to squeeze state government budgets.

>> so that leads us to conclusions about the impact of demographic change on -- on the state government financial -- financial situation. it is important to understand that this is not a short-run issue. this is a long-run issue and the issue is the structural one so that quick fixes will not solve this issue. quick -- simple solutions will not solve it. we need to see long-run structural changes. economic growth is likely to slow if we do not see those changes and efforts to increase revenues will be met with increasing resistance. spending pressures will continue to increase largely driven by issues of aging and healthcare costs as we age as society. and dealing with our legacy cost specially pensions but also bonding and other legacy costs

will be a major challenge for state government budgets going into the future. without fundamental change, state spending will shift, focus from a focus on education and infrastructure and implication for future revenue growth beyond that, so that if we focus on health care and pension costs to the exclusion of infrastructure and education our future economic growth may be diminished as a result. thank you. >> thank you, tom, what i really liked about what you just said, i demonstrates how dramatic the changes that we are seeing in the united states are in terms of demographic changes. now, surya you can talk about

that as changes take place. >> thank you, tom, tom really put together data that kind of shows the issues of aging population, but as a private-sector individual we look at at it as consumer demand perspective. so if you think about boomers, and there's been consumer spending of boomers is 60% of the total spent. you think about the same spending in terms of health care, 73% of the total spent. the private sector individual and a look at companies say that's demand. how do i set up opportunity against demand and we look opportunity and call it the silver economy and we sized the silver economy, so we said if you add up all of the opportunities of demand, how

much is it. we think globally by 2020 the size of the economy is going to be $15 trillion. in the u.s. alone that's going to be $7 trillion. to understand what $7 trillion might mean in terms of the economy, if you would take that segment and look at it it would be the number three economy in the world. to big opportunity. how do we as states, how do we as investors penetrate this opportunity? we think there are three tracks, one track is through health care and pharma, the second through financial services which is our business and third track through consumer goods. let me just for the sake illustrate them with examples. let's take health care. so we did a study recently

around health and retirement and in that study we asked what is it that boomers are concerned about in the later years and the number one fear, the number one fear of disabling condition was alziemers. it took us by surprise. why is this a concern? the number one fear for that disease is a loss of sense of freedom, take away the car keys, the second concern was loss of dignity, the third fear is fear of being a burden to the family member, the cdc says when we turn 85 the chances of being in decline is one in three. so that's two out of every three

couples at age 85 are going to decline and alzheimer's. the private sector is working up to this and, in fact, the only disease that's gotten funding doubled from nih is al ziemers, -- alzheimer's, it's still small compared to cancer which is $6 billion. so for us alzheihme's and if you're a state looking focusing on research area, alzheimer's is the way to go. in the financial services space, we see a transforming world, when we talk to our customers and our clients, they don't want

to just talk about money management, how does my funds do compare today s&m, they really want to talk about health, hay want to talk about continuing working past 65 and they have very clearly expressed to us that when they invest, they want to focus on doing good for communities as well as fair return so representatives who have worked in back bonds, so we have worked with new york state to ensure back bonds to ensure prison recidivism. this is governors shifting risk to investors, driving social good and only paying our savings. in fact, at the nga, staff about a year and a half ago had discussion about impact on states. financial services, one example

within that of how things are changing. the third one is consumer goods and technology. so there's a company in california that has an app on a mobile phone through which one click of a bombing you can get healthcare services for mom and dad. if you think about technologies, if you think about the demand the consumers have, 50% of changes in home renovation is by the boomer set. all the organizations looking at the silver economy as an opportunity, so the question becomes, so we add up all of the examples and many more, you get to 7 trillion. the question is as investors, how do you play as states, as state how do you attract the companies that are going to be focused on the economy to grow

gdp and torow jobs, so i'm sure we are going to have questions on this but we can pivot to this when we are done. >> thank you, often we see it only the negative way and it's kind of nice to hear the broader view of what kind of services are going to be needed, what kind of market pivots the private sector can do to deal with and deliver those services. now, lillian, we are delighted to have you because you have experience on all levels of education so that's going to give us a great perspective. one of the things that's fascinating about demographics is that the changes that we are seeing in the nation and we are going to see in the next few decades have pretty much begun to take place at the public school level and you walk into a grocery store and you see group of all changes and you walk into

a public school you see the future and you see a much more diverse population. so lilian, we would love to hear about your thoughts on education and demographics changing in the u.s.? >> thank you. >> good afternoon, everyone. the data that you have presented is aggregate data. we see the challenges that face state by state leaders. i'm going to give you an example because we do want to get to q&a and i'm bringing up the end of the conversation, i want to make sure we allow time for that. so i will give you an example of how the state of ohio in particular is addressing these data and the circumstances that have been delineated for you here. the columbus partnership is an organization of the 52 largest ceo's in the central ohio region, a significant amount of ceos are in the healthcare

fields and financial services. looking at this data is something that they have been doing over time and they had taken on every frontier on economic development, how do we grow new businesses, on technology, how do we innovate, create around technology so that we have the kind of apps that can give families access to elder care. all of those creative energies have emanated from the thought processes of ceo's and they have done extremely well. along the way on the aging of america and the kind of numbers where the gap is growing with more boomers and people in the pipeline to actually do plan innovate around this work, they realize that education had to be a part of their portfolio. and realized that what they do is grow job opportunities,

education was not in their wheel house. they hired me to come there to advise them on these kinds of discussions, these kind of data so that we can do two things, one we can find where things are working really well, zero to 24 year's old as we think about the pipeline that will have to backfill what is happening in our environment, so what is working really well that we can accelerate or expand and where are there gaps where we can use as innovation and creating energy to solve for x if that is a deficit in our environment. so what we start off and many of you, specially the governors have heard over and over again, time because of the browning of america, because there's no majority anymore, we are dealing with not just children who were

born here but we are dealing with a lot of new americans, we have in ohio, i think, the biggest somali or the second somali population and also nepolese, so all of that is integrating into our ecosystem and what we are trying to do is what happens to them before they even show up to kindergarten, what is happening to 0-1, 0-5, so we are working with nationwide children's hospital to look at celebrate one, our children living to one year's old because we have infant mortality that we need to tackle and then we are looking at what kind of high-quality care is available to our children before they get to kindergarten because we are hearing stories that children should show up to kind. >> garden not knowing how to hold a book, not knowing numbers, alphabet, names and how to spell them. if we can get them started out right, that means the achievement gap doesn't walk into the door with them and we

are looking at using people like the ones that have been describe today you about to leave the workforce to be mentors. and i will give you the one last example and i will stop, governor kasich has something called the community mentor -- the community connector mentor program and includes fate-based leaders, community organizers who go into communities based on their plan of action and actually take the boomers who are leaving the workforce and work with these children as mentors around personal discipline, personal responsibility and the social skills that they need to be successful in the workforce. governor kasich put $10 million into that initiative each year for lottery dollars and then he had something called the

straight a around innovation and creativity where he engages the business community and local jurisdictions to partner with schools, colleges and universities to look at innovation and creativity around stem. science, technology, engineer and math. lots of those opportunities are not something that would normally happen with the school on its own, so the business community, community organizers than somebody sitting at a distance is really benefiting up to $1 million per year to develop plans for their communities. i will end by saying, we are so pleased in public education and the examples i have given you are examples that each of you will probably look to similar examples in your state, but without the business community, our governmental leaders and the schools working together,

whether they be public schools, private or parochial schools, if we are not all working together to ensure that we are developing the pipeline that is need today backfill this workforce and that we are being thoughtful about what we are preparing our students to engage in their futures, then we miss a great opportunity. so an education, we see this as an exciting opportunity to focus our work in a way that will be beneficial for the common good. >> thank you, lilian. and what a great example of innovation to deal with some of these challenges that we are seeing right now. well, in a moment we will open it up to the governors, i assume that you'll have some interesting questions. i do want to say a few things about the budget and financial impact. you know better than anyone that unlike the federal government, states have to balance their budgets so, in effect, from a

financial standpoint it's a zero-sum gain to deal with spending at state level and as tom pointed out and i can certainly emphasize, what we are seeing is a situation in which the expectation is that revenue will grow slightly below average for years to come and not quite the same level we had kind of from world war ii until the early 2000's, so you have a limited expectation because of our tax systems in the changing economy for a weaker average growth rate of revenues. then on the spending side, you have a lack of flexibility given that there are requirements for health care, medicaid, k-12 and, of course, i always say it's a good way to think about, there are certain things you can't do at least immediately, you can't just open the doors of the prisons and let people walk out so there are those expenses that are fixed and often growing.

so you have a difficult fiscal situation and what i think is really interesting is that demographics has such a critical role, we know at the health care level, there's no question that the aging population has a huge impact. but it's so much more than that and again you point out a state like at utah, nevada where they have fairly significant k-12 populations too. so you have a lot of changes, demographically that really do have a financial impact and one of them, of course, is this issue of the pensions and we expect and forecast that states are going to have to put more on an annualual basis general fund moneys into their pension systems to ensure that they're fully funded or at least adequately funded. the flip side of that is not to put that money and then you put

your pension system and create a risk, i think they'll be more pressure over time as the population ages and say, you are going to need a certain amount of money to put the pressure on, to put additional funds in the pensions. so pensions is an issue that we certainly all talked about but over the 10 to 20 years will be a huge dramatic huge for states simply because of the additional funds necessary. and what the budget finance people and perhaps your budget and finance directors have said this to you, the term crowd-out, you have a worrisome situation in which as you have to put more money into certain things like medicaid, whether that's good or bat, it crowds out funding available for, say, higher education or other things. so you have some really difficult -- frankly politically and financial dilemmas going forward in part of demographic changes.

obviously food for thought in so many different ways. so now i would like to take a few minutes to open up for governors. we have an incredibly esteemed experts. we see in the paper, i can't tell you whichever sunday paper there's always an article about the aging of the population but now we are seeing them -- these actually have implications for you and your states, so governor herbert, i turn it over to you if you or other governors have questions. >> we certainly are open up to questions. i will just start while you're thinking. the expense side as you kind of touched on, scott, of the changing demographics is impactful in many ways, you mentioned utah. we have still a fast-growing

birthrate, higher birthrate than national average. our impact on schools that demographic continues to expand and some are leveling off or some reduces. i expect we will follow the national trend and slow down. i know i have taken the pledge, i'm not having any more kids. [laughter] >> and so but that's -- that's just one aspect of it but i see aging population has more impact now -- more reliance on medicare, health care, government assistants, we have immigration coming to our country, undocumented education is a cost, whether it's an offset is part of the debate but the concern that we have as government officials is are we adding to the burden of the

taxpayer, taxpayers by increasing the burden -- by having more and more people on government assistance because of changing demographics? is that, in fact, happening? other countries out there having a hard time growing economy because so much gdp goes into supporting those on government assistance? again, tell me about the economics of population, immigration, are we going to be able to afford as we go forward in this generation or two? >> tom, i will start with you. >> actually i'm very optimistic about the future and even though my presentation sounded very pessimistic. and the reason is i think we will find some solutions for critical issues. i think one of the things we need to sort of discard is the notion that once you turn 65, you're ready for the scrap happy or ready to take a very long vacation and not do anything.

the worst thing we can have is people just sitting around doing nothing because they're going to be less healthy, they're going to cost more and probably grumble more as well. keeping people active, finding ways to keep people in the workforce in ways that they would like to do is one way and that helps grow the economy that keeps some of the critical skill in our workforce, finding alternatives for retraining and things like that for an aging workforce, but also even beyond that, once the person leaves the workforce, opportunities for volunteerism that can differ some of the state expenses while at the same time keeping people active and making them feel like they're making a contribution to society and in doing so will be a health % and longer lived and

frankly less expensive to state budgets. i think there are tremendous opportunities. i agree with surya that this is not a one-sided thing. we need to think alternatively about how we move forward in the future. >> as we were looking at boomers and surveying the boomers, governor, we were surprised that 85% of those we were surveying said that they want or need to work past 65 and those who said they want to, want to do it on their terms, flesm -- flex time, et cetera. the question is are companies like mine set up to take on senior workers and policies at city and state are age-friendly. if we did that then we can tap into what tom was talking about.

>> one of the things that enticed to take is that the community is all in, they're willing to invest with matching funds as long as the plan make sense to them and maintain productivity. >> let me follow up if i could, what you illustrated and what we know that the demographics are changing and the question is are the policies changing to line up with the demographics, because we know we had president bush that we need to get social security on some projections and everybody thought, well, that's probably a good idea and nobody wanted to do it and became a divisive issue and kicked that down the road and, again, i

agree that people past 65, they don't want to be put out to passture. they want to find some way to retooled or continue on and many people are working past 65. when you look at the last hundred years in america, the average life span of an american a hundred years ago was 47. now it's 78. for women it's 82. so clearly the demographics are changing and yet i don't see a lot of change in policies. are we just waiting -- we go over the cliff, we need to change social security, you know, push it from 65, beyond to 70 or something, are we going to get something that's going to make us change policy to line up with the demographics? >> i will totally agree with that. one stat i want to add, a child born today, the chances of that child turning 100, living up to

100 is one in three. so we are going to have a society living up to 100 as we go forward. so policies have to change. >> for about 35 years i worked in state government and was raising these issues saying well, in the long run, this is going to happen, we need to prepare for it and the response often times was inappropriately so that, well, that's in the long run, we have more immediate short-run issues to deal with. well, what happened is that the long-run has become a short-run issue and that's where my hope lies that we can't kick the can down the road anymore, we have to start making some decisions and i think the idea of public-private partnerships is a brilliant one because many corporations are also very concerned about -- about these issues and that sets up the real possibility for making some

dramatic changes in the way we deal with an aging population. >> and i want to add too, i think it's really important, i hope governors, frankly, you have a wonderful role in your bully pulpit to frankly ask people and encourage people to say for retirement, i think if you see the statistics, they're absolutely terrifying. i know i'm not doing enough and i'm trying to get ready for retirement and increase my 401k and i'm pretty educated on finance issues so i would strongly recommend, are there ways within your state to be asking the citizens what are you doing to try to think and save for retirement? i think we will have a crises in 10-15 years where people get to go that point and unable to live on what they've saved for retirement even with the supplement of social security on top of that. >> i sometimes feel demographers

kind of like paul revere telling people there's a problem down the street and you're being ignored. i think we as elected officials need to take it seriously. other questions? anybody has anything? denise and then john. >> thank you, governor. i have to confess that i'm in relatively good position in south dakota, the government and governors before me and the legislators in the past have been fairly careful about some of these things. notwithstanding that some of the things that were shown on the charts and predicted as coming we've already start today see. in south dakota we are seeing medicaid becoming an

ever-increasing fraction of state budget and it is crowding some of the other things that the state budget covers, and that is true in a state that really has avoided some of the very long-term liability issues. our pension as of last year, anyway, was fully funded. this year with stock market over the last 12 months ending june 30th, not so great. not meeting the investment projection, you know, we are going to be 93% funded or 94% funded, something like that. relatively good among the states but certainly harbinger down the road like states like illinois where underfunding is severe. one thing that we did and i know some states are starting to do

is very much within our reach and that is change the pension plan for new hires. i know states have adopted pension plans different for new hires keeping the commitment to workers already on the workforce , and granted, that is a long solution. i will take some time for the workers on the old plan to gradually move off into retirement or -- or death and then the new -- new employees be under a more modest plan that's more realistic in terms of what the state can afford and be financed under the tax structure. so that's one thing that we have done. but really that's like in a state like iowa that has very low death and well-funded education plan. i looked at many of the

nationwide averages and comparing all the other state that is have pretty significant liabilities and i could see what we have just started to experience on a very minimal level is probably going to occur on a very significant level in the not very distant future. we've had to do some things to force all of that too and i think you have to have some courage to do that. we raised taxes this last session to increase funding for education because medicaid was crowding out our ability to do with existing revenues and were growing too slowly to meet the need and we did raise taxes and the same thing for infrastructure. we hadn't raised taxes for infrastructure, our gas tax, vehicle registration tax, we were right behind iowa in that regard. they raised that tax and we shortly raised that tax on gas as well to provide funding for

our roads. i think the citizens will accept those kinds of things if they feel that the dollars are not simply to pay for past sins but are to pay for prospectively better future and i worry that if we don't as states move more quickly it's like the fundraiser who wants to come and raise money for a building that's already built and they want to raise money to help pay down the debt, pretty hard sell, pretty hard sell versus the college advantagesment officer that says, well, let's build this new science building, we don't have it yet and your dollars will make that brighter future possible. i guess not so much a question but a comment and observation that i think some of the prospective futures that you've

shown us through those graphs and slides are even occurring already today. >> thank you, governor. governor edwards. >> thank you, and the question i have, i think, is for mr. gillespie. governor herbert was talking about aging population. a lot of it is progress but there's a cost associated with progress. people are living longer because there was a time you had a heart attack when you were 15 you died. you got cancer when you were 52, you died, now you're living much longer because of medical science and pharmaceuticals and you consume -- i'm making this up because i can't remember the exact amount but you consume about 90% of the health care over your life in the last ten years of your life, so there's a tremendous cost associated with it but in one respect it is progress and if we want to

progress, we have to find a way to pay for it and i know that it's hard because it does start to squeeze out other things and there's a revenue component because if you allow medicaid to squeeze out your investment in education, you will have less revenue in the outyears to pay and this is extremely hard and if you focus in on one part of it to the exclusion of another, you're going to be out of balance as well and i just ask you to comment on that, perhaps. >> thank you, governor. in one sense -- and i totally agree. in a very large sense we are deviled by our blessings, we are living healthier, more opportunities and we live, you know, almost a charm life and we

are complaining because we are getting older and eventually we won't be as active and it's going to cost a lot. i think the main thing is we need to be aware of this and plan for it. even though many people listen to the numbers and think of it as very depressing, i don't think of it as depressing. i mean, i live with these numbers all of the time. i don't think of it as depressing, i think of it something that simply is and something we need to prepare for and go forward and recognize that we are living longer, we are living healthier and what a fantastic time to be alive. i don't think it's a negative thing. we just need to be aware of this as its implications for budgets and things like that and be able to deal with that. >> one of the things that we were working on when i left the state, i believe that most

states have infused financial literacy, situations where pensions may or may not be there, thinking about college, do you need to go away and pay huge amounts if there's a college in your home that's more comfortable, so i would also advise state to really look at those curriculum to make sure we are starting with the kids early on and hope to go get the mine set for personal responsibility for living longer and what that means financially for families. >> governor maloy. >> i didn't get the whole presentation so i apologize if this was covered but the reality of your discussion over the last

20 minutes can do nothing but lead us to a conclusion that discussion of entitlement reform that is not income-based is for all intents and purposes impossibility in our society. we are going to have a wave of people that are not saved. and yo now -- you know, we are spending a lot of time and energy in the united states pretending that we are going to suddenly take people who are living in poverty or project to live in poverty even with the benefits we are providing and we are going to reform those in a way that we are going to save money, that is anything but income-based becomes an impossibility. so what i would urge you to do is take the show on the road and spend a lot of time in washington, d.c. because the states can't pick up the difference and so it's an

important discussion and a reality that we need to confront as a nation. it's fun to talk about it, i suppose in some corridors, it's just not reality. that's my comment. >> can i make a quick suggestion? it occurs to me that if we took tom's data, which is national, and made it state oriented and you would put a layer on top of that that asks am i, state am i exporter of senior citizens or am i a net importer of senior citizens because that has implication for gdp because of on the revenue side and expense side, if you're focused on the expense side you have a problem. you focus on the revenue side and you're a net importer, you drive revenue. i would ask the question, what does the state demographic look like, m a i -- am i a net

importer or exporter, that would be my summary on this. >> well, i think we have run out of time. let's give the panel a round of applause. thank you very much. [applause] >> we will now take about a ten-minute break, we have our last session on kinder security so we invite everybody to stay in place, take a warm but hurry back. [inaudible conversations] >> here is what's coming up on c-span2. next more from the national governor's association meeting

with their discussion of kinder challenges. a little after 2:00 p.m. a hearing on urban security and areas that may be high risk for terrorism. after that the national right to life committee reviews how their issues will impact the 2016 election specifically house and senate races in november and where presidential candidates donald trump and hillary clinton stand on abortion. >> to do on q&a washington post executive marty talks about the changes since he took over in 2013. he also discusses the depiction of his work as editor in chief in the movie spotlight. tonight on book tv, books about terrorism starting at 8:00 p.m., isis a history. the program is from an afterwords program that aired earlier on book tv.

sebastián gorka defeating jihad. the wonnable war. car rent offers the making of a security state. and after that, lieutenant general michael flint and the field to fight, how we can twin global war against radical islam and the allies. all of this tonight tarting at 8:00 p.m. on book tv on c-span2. >> book tv on c-span2, here are some featured programs this weekend. saturday at 10:00 p.m., argue that is the left is using tactics in her book the intimidation game, how the left is silencing free speech. she's joining conversation by jenny thomas, contributor to the foundation.

>> government abuse is one sided and i think there's a couple of reasons for that. when i started this i cared about free speech and the first amendment. i'm a libertarian when it comes to this and i don't think i have no allegiance to one party or the other and i went into this. i had written to this about the abuses on the left but i assumed going in that i was going to find a whole bunch of stuff on the right too. i didn't. >> on sunday in-depth live with author and legal analysts, will take your calls, teks and e-mail questions from noon to 3:00 p.m. eastern. mr. tuban will be discussing his latest book. the wild saga of kidnapping crimes of patty hurst. a vast conspiracy, the story

that nearly ran down a president . opening arguments, a young lawyer's first case. join in the conversation with your phone calls an tweets beginning at noon eastern on c-span2. then at 7 eastern danish looks a hillary clinton in america, the history to have democratic party. go to booktv.org for a complete look at the complete schedule. >> more now from the summer meeting of the national governor's association, a panel discuss strengths and how kinder security -- cybersecurity impacts infrastructure.

[inaudible conversations] >> now it's on. welcome to our session, we are honored to have you all here and thank you very much for your attendance. i know we have some special guests here. they'll be introduced here shortly as we have the discussion on cybersecurity and, again, all of our guests, our sponsors, we thank you for the participation in the national governor's association conference. and while i'm tauging about that, let me just say that as the chairman of this great organization, it's an honor and

i know terry and i were talking earlier that this is a great organization doing some wonderfully good things for our country, respective states and certainly honor for me to serve as your chairman this past year and looking forward to have terry take on that responsibility and opportunity here this next year. i have come to appreciate in this chairmanship role the significant help we get from our nga staff, kind of the unsung heros that sometimes are behind the scenes -- we don't see all what they are doing and they make things run smoothly and on time and help us governors look better than we probably deserve. so i want to thank the the national governor's association staff, the bipartisan effort, advice that comes from them as we sort through a lot of material is very impressive. again, we have had productive meetings year after year for

those who have been around for a few years, this is my seventh year and i've never missed a meeting. i enjoy coming. i associate with great governors and leaders of our country, doing remarkably good things. learning from each one of you all, from special guests that come from time to time and give us expertise and council so i'm a big believer in this organization. i want to thank scott patterson, where did scott go? but our new executive director who has come with a mandate to raise the awareness of this organization around the country and help us have a larger profile and more impactful when it comes to policies, discussions here i am a believer in the states and frankly, i believe that the states are as i said many times, the states are the best hope for america in getting things right and helping us getting the country going and staying in the right and appropriate direction on behalf

of the people of this great country. i appreciate the support we've had and i know governor is going to continue that same legacy here and he understands the significant, important role the states play in our country and i know we are going to turn the reins over to him, in good hands. with that i would like to call upon larry hogan who is our nominating committee chair to come and report on nominating committee. solare. >> thank you, mr. chairman. on behalf of the nomination's committee, which includes governor baker, hutchison, hassan and tomlin, i'm pleased to present the slate of ng officers and executive members. for help on executive committee governor malloy, governor nixon

of missouri, governor from ohio, what a big bluntedder that was, huh? [laughter] >> governor mccrory of north carolina, governor herbert of utah as immediate past chair and nga vice chair brian sandoval of nevada and my good neighbor to the south terry mcauliffe of virginia. i move have this outstanding sleight adopted. >> well, thank you, we have a mowción on the floor s there -- motion on the floor, is there a second? second? any discussion? hearing known, all those in

favor say aye. >> aye. >> before we turn the gavel over to the new chair, i would like to make recognitions for those who are leaving their service here and just trying to check to see who is here, but those who are not with us but this is their last meeting as a now exit office, we have governor jack markel and peter, jay nixon, we have maggie, she's leaving too, i think she's run if for senate, as i recall. and let's see. earl ray, is he here? i heard he had to leave.

who we do have here is governor padilla. right there. governor padilla, come up. [applause] >> right here. >> on behalf of national governor's association we appreciate your service. governor padilla has been involved in a lot of great things in puerto rico and we all know the challenges you faced, governor, and really one of the reasons he's not going to be with us is because he's stepping down voluntarily, not running again to see if he can concentrate on helping get puerto rico's economy back into a healthy condition. that's true sacrifice and that's true service and we are honored to have you as part of our colleagues here and national government association, we wish you well. he's done some great work in puerto rico, not only as governor but prior work with transportation, utilities and things in puerto rico, we are

going to miss you being here, buddy, but we offer that to you as a tone of appreciation so thank you. >> thank you. [applause] .. ... >> on behalf of all the governors, i would like to present this gavel to recognize the service of gary herbert who has been on outstanding chair.