local politicians and citizens while we burn down there. we wanted that data in hand before we went down there. if it was up, that was what we would report. if it was the same, that is what we do. when it came back in this direction, i did not believe it would be anything like that. i thought, given as much we had heard, 83% of americans believe the crime rates are higher there than in the rest of the country. i am not alone in doing this and in thinking that. when the spurs numbers came back, i distinctly remember kind of standing there for a second and thinking, "are you sure about this?" sure enough, we can checking with criminologist and the distance -- statistics. host: thank you very much, alan gomez, his story available on line usatoday.com.

we will continue the conversation tomorrow morning on "washington journal" as congress comes back and the ongoing debate on raising the debt limit and federal spending priorities as well as taxes. we will talk to jane hamsher, her blog warning that the president should not touch entitlements. richard land is with the southern baptist convention to talk about the role of religious evangelicals in the presidential campaign. and julie rovner from npr to talk about the president's implementation of the health- care bill. that is tomorrow morning at 7:00 a.m. eastern here on c-span and c-span radio. thank you for joining us. i hope you enjoy the rest of your weekend and have a great week ahead. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011]

>> as far as how states are viewing debt discussions in washington, what concerns among chief executives like yourself? >> the concerns are two-fold. the biggest concern and the more inaction we have been out of washington, d.c., the more upset this causes in our own economies and state. consumer confidence and business confidence is affecting my economy. you can imagine my consumer confidence is down. i'm not getting revenues and it is affecting the coffers of state government. a number of those in the

business community have money but have not been willing to hire simply because of the uncertainty of what is going on in washington, d.c. that really has a direct impact but not just my state. with all the individuals at the table, we said if what we hear is correct and you are planning a 10% cut of medicaid to the tune about $100 billion and the backs of the states, you need to know the consequences of that and only to those who are being served by that but also, is to those kind of actions to realize the impact and negotiate with us so we could be of assistance to where the cuts need to be made. we wrote a letter sent it that you are saying, work with us so

we can help you do the necessary cuts because we want to see our fiscal health supported that the national level. we stand ready to talk with you. host: what can you offer them as far as assistance? guest: we have done something with dual eligibles. they are the chronically ill. they are those that are costing us the most, maybe $1 billion per year. there is no coordination of care because there are two separate programs. we have gone to the administration and ask for a decade and just this last couple of weeks, the administration said let's work together. let's increase the quality of care to the chronically ill. that would lead to a dramatic reduction in costs. that is the way to do business.

we were able to make that happen. we're making the same kind of offer to the congress. work with us because we know you have to get your fiscal house in order. we have done and we know what it is like. >> aside from this medicate issue, regardless of what happens in washington, what would be the most harmful cuts? guest: let's say there is a dollar cut at the national level for not discretionary spending. we know when three of that will fall on the states. -- we know that 1/3 of that will fall on the states. it might be student eligibility

and schools for k-12 system. despite these tough times, the states have tried their best to maintain our investment in education. we have a long talk guest today that education being the key to jobs in our financial success and the success of our american citizens. we're struggling to keep that investment up. tell me where the greatest spurt would come based on federal cuts, it would be the in the area of education. governors are not willing to work with -- governors are willing to work with congress to find a way out of this spirit we want them to know that the consequences when they cut. our short-term and long-term. they can trigger us in reverse.

whatever congress does can put things in reverse for us and that is the last thing we need right now. >> talk about the difficult challenges. there are all the recalls going on at the senate level. is what is happening in wisconsin have a deterrent on other governors? what do you make of what scott walker is doing? guest: let me share with you -- in my particular state, have a house that is democratic and a senate that is democratic and on and a democrat. -- and i am a democrat. you would wonder how we get major reforms done. we have reformed pension this last session, reform the

unemployment insurance, reform workers' compensation to the tune of over $1 billion over the next four years. we have made the most dramatic transformation in two decades. i laid out the crisis we find ourselves in and i need your help and i need to sacrifice. we went to work. this last legislative session was not a pay hike.

we got all of that done because my message at the outset was these are unprecedented times for it we cannot end up in a partisan bickering battle. money to set aside the politics, set aside all the anger and the end and roll up our sleeves and get the job done. we got it done. legislative session was probably the most productive that anyone can remember. it was done by everybody laying out the problem and asking for people to sacrifice and help. i've included my public. i had hearings across the state. i had a transportation committee, about 31 the burst people who helped work it through. we were able to do it but we did it with an inclusive, respectful way and we got the job done ver. >> is that a criticism of all the governors who could not

resolve their state problems? >> i cannot criticize my colleagues. i don't know their dynamics. i am sure you the experience of my state. i don't think i am alone. i think there are a number of states that have been able to make the dramatic transformation that we have been able to do. i have about a $32 billion annual budget but 60% of that is off-limits. that left me with about $14 billion for which i had to cut $5.1 billion without new taxes. the voters said no new taxes last september. we were able to do. it is painful. we have shredded the safety net in some areas. we ask the nonprofits to step up and help. help your neighbor or that person you don't know but the bottom line is, each state does

it their own way but many states have been able to do it without division and have been very successful. of let's talk about the tone your legislative session. you guys have renegotiated contracts. this time around, there were angry about the budget cuts. a lot of the labor group said there were influenced by the town in wisconsin. but they did not want to get steamrolled. is there a toxicity that will spill over in a state like washington? guest: we have the largest demonstration that anyone can remember. we had over 10,000 on our campus on one day. the demonstration was probably the finest moment, in my opinion, in the history of our state.

people were expressing their freedom of speech and doing it respectfully and self-policing with no disruptions but there were multiple messages and their messages to say don't shred the safety net, it don't -- don't cut the things that were meant as a last resort. we did what we had to do. we're now looking for help from our citizens. i have had our faith community in and they are nonprofits. they did not say they would not sacrifice. in a very bipartisan way, the most difficult moves these

people have taken and their legislative careers, they stepped up and did what they had to do. >> labour is very important. one of the big issues that is breaking through into washington is the courage breing case -- boeing case. it is a way for union members to trash the nlrb in washington and labor is funded difficult to keep those jobs. president obama ducked a question about it. he has not taken the side of labor or washington state. are you disappointed in his leadership on this issue? guest: not really because he sent the message to the two

parties boeing and labor and the union was to settle this out of court. it is best done of you work together. when that was filed, it is on the heels of a very difficult strike. alas two years, the relationship between boeing and management and labour and the union is dramatically increased. i just announced $3 million in training for aerospace and that will increase production. we need a skilled and trained work force. boeing and labour said that would work together to get those skilled people. they both went to the paris air show with me. >> boeing boeing still wants a

plant in south carolina and now washington. does that concern you? guest: we did not want them to move any of the 787 to south carolina. they had a business decision to make. the next iteration of the 737, we want that in washington state. we are part and with washed -- with labor and -- with unions and the company to make this happen. our message to them is that both of you are best we need to step aside and let the two parties get the job done. host: sarah married.

>> let's talk about the skilled work force issue. revenues have been improving muscle that has been eaten up by the medicaid program that we're spending less on education. what is that mean for the future prosperity of our state's tax guest: we had a good conversation about this yesterday. my initiative as chair of the national governors' association is an initiative we call complete to compete recognizing that america has gone from first in the world in the production of decrees to number 12 and falling. we know full well the jobs of tomorrow will require something beyond high school. we know we are not currently producing what we need for the business of tomorrow. we also know we have 9% unemployment nationally but we also have 3 million jobs not filled because business cannot find a skilled work force the

need. , engineers for example. we need to recognize that one of the ways out of this recession is for us to make sure that when we are in recovery mode we have not failed our citizens for our students by cutting education back to much. we have to look at new jobs of tomorrow. we have to bring in new training. we cannot assume that those who have lost their jobs will go back to those jobs. they may be lost forever. need to make sure those people get a new shot at the new job. in partnership, i hope with congress and i know with the administration, we have to make sure that we don't just focus on our unemployment and walk away from it but focus on the jobs of tomorrow, ready ourselves for those jobs and get our people the education and skills and training they need to fill those jobs. i hope -- we had the president of mit yesterday and she is

adamant about bringing manufacturing back to america. i say hear, haer to that. we better have the skilled work force to make that happen. i am seeing improvements in aerospace. we need a skilled work force to fill those jobs. we need students understand that tomorrow competition lies in science, technology, engineering, and matt. we need more graduates in those fields. this is been the topic of conversation here at the national governors' association about how we unite to make sure that america remains at the cutting edge when it comes to an educated work force. >> how do you do that practically? your medicaid spending is expected to keep rising. right now, you are restricted by the federal health-care law. it seems we are on an

unsustainable path of spending more on medicaid. that means there's less to spend on education. guest: in my home state, we have involved all of our providers, all of our businesses, all of our insurers and we have set a goal over the next 10 years that we will maintain medical inflation, a health-care cost inflation, to more than 4%. if we are able to achieve that in my state, we can save all of our folks $26 billion. we need to understand that it is not just about keeping -- capping spending. it is about maintaining high- quality, bring about deficiencies in health-care delivery best done by involving the providers, the insurers, and the patients. that is what i am doing in my home state. at the same time, how we spend money and education? this past legislative session,

we set up a $1 billion program for scholarships to low and middle-income students who don't otherwise have access to state grants for those kind of resources. it will be a match program. we started out -- microsoft and a boeing each put in $20 million. we have a $100 million down payment toward our $1 billion program to make sure the doors of higher education are left open to our low and middle- income students. we are looking at this and realizing we have to cut the costs on health care, maintain quality, and make sure we're putting our money in a partnership with the private sector to make sure that students can go to school. >> health care is a flash point at the center of the budget negotiations in minnesota. we have seen a budget shut down running into its 17th day. they are working this weekend to

move toward a special session to reopen the government. how much buzz is there about the minnesota government being shut down and what lessons did you learn from it? did it look like the democrat caved to you in the end? >> we had some conversation and a governor's only meeting yesterday about what some of us had done. we talk about pensions, for example. the governor of delaware and new jersey and myself, what you learn when you have a roundtable discussion with fellow governors is each state is unique. you have to approach them understanding the culture, the dynamic to your respective legislature. or is virtually no criticism of anybody here of the national governors' association. but we are sharing the pain because we have all been through it. we know what minnesota is going through. many of us could have found ourselves in the exact same

position. we were able to work our way through it. most of the governors were able to work their way through it. this only relatively few that have found themselves of a situation where there has been this much rancor that has led to the shutdown of state government. many of us say there but for the grace of god go i.. it has been a difficult time. one of the most difficult jobs in america today is being a governor of a state. you have to make the tough decisions. to look at your friends and say i am sorry, i will have to do this. you have to work absolutely bipartisan very in the end, people will blame whomever is at the top. i cannot criticize one of my colleagues for the tough kind of decisions they have to make in this situation they find themselves in. host: we have about five more minutes with our guest. >> we are seeing a lot of the

hopefuls for republicans in 2012 being former governors. how much sway as a governor really have in any state over short-term job creation? how much of that has more to do with long term trends and macroeconomic forces that are not within your control? >> government does not create jobs. we all know that. we sure can have a climate that allows the private sector to flourish. we have to provide the infrastructure and by that i mean we need to make sure that there are roads, highways, bridges, and ferries back and get goods and services to where they need to be inappropriate amount of time and that is the responsibility of state government. we need to make sure we're foster and the kind of internet capability in every corner of our state. that is the way in which even

my agriculture has become so sophisticated today. we need to make sure we have that skilled and educated work force and it is our responsibility to provide that. we need to cut red tape and everyone of us is challenged by that. we need to make sure the rules and regulations are going to protect things like our environment but do it in a way that small business does not have to hire a consultant to get through it. those are working to streamline and unify our roles and permits and so on. we need to make sure that the state governments are lean. we have introduced lean manufacturing in my state whether it is in the delivery of services and workers' compensation to keep the rates down or the delivery of unemployment insurance to keep those rates down. we play a big role but i see economic development as a public/private partnership. my trade missions introduced different businesses to

companies and to governmental entities they would never have access to but for me. that is our partnership. washington state is most trade- dependent state in the nation. our ticket out of this recession is trade. our ports are booming. our exports are up. we know that is where our bread and butter lies. you cannot get that product onto that ship if you cannot get across a bridge or over a highway. that is where state government has to be a good partner, said a good climate, and work well with the business community to make it happen and involve the work with our labour community who oftentimes know the best way to insure efficiency and effectiveness in delivering what state government is responsible to do. >> you said one of the most difficult jobs in the country today is being a governor. do you think the republican party should nominate a candidate for president in 2012

was a former governor? we're talking about john hulsman who spent a lot of time and china. should republicans go that direction? guest: governors like to see governors become president. they know what it is like. let me speak about president obama. my colleagues who are republican would say the same thing. the first thing present obama did after getting elected and before he was sworn in was have a national meeting with all the governors. it was a listening conference for him. after an unprecedented number of new governors last fall, 29 in number, he did the exact same thing. he brought all of them to washington, d.c. and have a listening conversation with them. they have reached out to us as an administration more than any i have ever seen. when we had the epidemic when

the first into office, secretary napolitano and secretary civilians were on the phone with governors daily if they wanted it and inviting all governors said that whatever message went out was the same from the national level to the state level. just recently, secretary civilians work with us on the chronically ill population we have been trying to serve for a decade. we have not been able to get help and she delivered. how'd we ready states for natural disasters or a terrorist event? secretary impala, was a former governor and has stepped up and said she understands we're making real progress. secretary vilsack is a former governor as working with us and how we really get our agriculture up and booming again. he understands. you don't have to have a governor as president of united states but you do need to have a

president who understands that rubber meets the road with the governors and the states and reaches out and listens and responds that works well together. that is what we want and that is what this president has done for us. host: governor gregoire, that you for your time today. james holman, there was a lot of ground cover but what was -- what struck you? >> she wants a job in the obama administration and a second term. she is the chairman of the national governors' association. she very deliberately avoided any of the republican governors partly because she sees her role in the non-partisan way but to also talk about real pain. call it one of the toughest jobs you can have a she talked about shredding critical parts of the safety net. safety net.