>> what is stopping you from making this a year job creator? is it permitting, uncertainty in government, miscommunication and awareness of this potential opportunity? >> we're trying to match people up with these opportunities and we are recruiting workforce. people are coming to north dakota. we are getting great jobs. in the last 12 years we have gone from 39th in the nation in per capita income to six. that is quite a bit of progress. we believe the right policies and opportunities, they will make that happen not just in north dakota, because there's much more going on than just the market play.

it will happen in any state. >> you wanted to jump in and i know there were others here. >> thanks for bringing up the topic of energy. wyoming exports more btu's than any other state. it is as big an issue for us as north dakota. >> that is good, we need competition. jack -- >> we are gaining on you. >> in and of itself, energy produces a lot of jobs. you look at states that can produce lots of energy. they have low unemployment. we have increased our manufacturing a full percentage point greater than the national average. manufacturers and businesses who want to come to wyoming look at the low cost of energy. if you have low cost of energy, if you can provide affordable energy. energy is related to the cost of everything we do.

infrastructure is very important. it does not matter what your development plan is if you don't have roads. your going to be in a tough spot. collectively as i talk to governors, infrastructure is and should remain a top concern in terms of making sure we have the platform necessary for businesses to take off. >> what i'm hearing is the biggest opportunities for growth and jobs in america, you manufacturing, auto, energy, biotech and biosciences, health care, agriculture. >> one hold up in energy -- aerospace. one hold up in energy is, i split energy into two areas. one is power generation. most of the future power plants will be designed in the u.s. and exported. the charlotte region is becoming a major energy generation hub.

the future ge's are building nuclear turbine plants. that is the quality of workforce we have in the u.s. there is states like north and south carolina who want to look and see what potential energy is offshore. right now were not giving permission to do the necessary seismic testing to find out what energy sources we have off our coast so we can determine how we can drill in a safe and environmentally sound way. we actually have a meeting -- several governors and i are meeting with the secretary of the interior tomorrow morning to try to get the administration to lift the moratorium to allow us to begin seismic testing so we can compete against these other energy states and get jobs and help participate in the country's energy independence. >> what do you say to the

environmentalists and critics who say, this cannot be done safely? this is going to get into the water supply. >> they are filling up their gas tanks from someplace right now. they are heating their homes from someplace right now. the technology has improved greatly and we have to ensure as governors that we institute safe, environmentally sound practices that make it happen. every form of energy we have to seek. most governors believe in all of the above and all of them have certain issues we have to deal with to ensure we protect the environment while continuing our economic growth and prosperity. >> you said something important. we talk about jobs in the energy sector. there's this idea that that is not a popular thing to do for children, young adults and universities and colleges. almost as if you go into a class and say, how many of you want to work in the oil field?

not a lot of hands go up. if you say petroleum engineer, they will say that sounds good. it is the way it has been presented a lot of those not in my back yard, offshore. we are trying to protect the to go into, and energy production exploration, you are going to do something that is somehow unpopular in our culture. we have worked hard in mississippi. we are the second best state in america. invest. oklahoma is one of them. we're trying to get our universities and high schools to tell students, this is an admirable thing for you to do. you could have a tremendous career in energy and change that mindset that someone will dislike them because they're going out and using hydraulic fracturing and enhanced oil recovery, new technology that

has made us the greatest producer of oil and gas in the world. >> it's almost marketing. we have to be able to communicate to our young people of this is where the growth is. and this is understandable and acceptable. >> thank you. let me weigh in on the energy thing. the reason energy creates jobs is because there's a big demand for energy. it's a product that is global in nature. probably growing exponentially. those who can produce the energy has -- have a product that create jobs. i sympathize with pat and the need to have some offshore. as a public land state, where we have a lot of opportunity for energy in our public lands, we are very much inhibited because of overburdening regulations that don't allow us to access our natural resources on our public land.

jack, in north dakota has only about 9% public land. he's got private development taking place out there. 70% of the landmass in utah is public lands. we have potential to develop our energy reserves and our own shale resources. i understand the market demand out there is for sustainable energy. energy that is affordable and cleaner. that is the challenge, affordability and sustainability. with new technology taking place, we can drill offshore and we can drill inland on our public lands. in responsible ways to provide the energy the marketplace wants. >> we are talking about a lot of the same issues. we are going to be transitioning very soon into challenges. we started the discussion on opportunities.

we have gone right to challenges. we are getting the issues, the barriers to growth and jobs on the table right away. first up is governor hassan. >> this is on the subject of challenge in the energy arena. for new england and the northeast, we have particular challenges in getting capacity. gas line capacity. new england governors suggested an agreement to improve the energy infrastructure, if you will looking at not only , improving capacity, but making sure that over the long run we have a diverse energy supply portfolio, which all the governors would agree is important to be able to do. it gets back to not only where the opportunities are in terms of energy and the fact that we can be self-sustaining as a country, but we also need to think through how our energy infrastructure transmission

capacity is going to work and how we can work together. we are a happily competitive bunch, but what we know about the 21st century is a collaboration and problem solving is really going to determine whether we can compete and lead. that's the next challenge for many of us, is what can we do regionally together, honoring our states' individual needs, but making sure we collaborate in a way that leverages our opportunities. >> absolutely. >> we're missing the boat when we don't talk about energy efficiency. energy production is very important. we have to be much more efficient in our country. our state is number one in the country in building leed certified buildings, buildings that are energy-efficient that use water in a conserving way. it's important that we use renewable energy. every energy efficiency mission

we can embark on saves taxpayers money, if it is a public the link, and it saves all of us issues the lead the news everyday, which is whether. weather. we have had severe weather, things in our state, floods in april that were pervasive. november, deadly tornadoes. in the winter, severe winter. we have got to act together to be much more observant of the climate as well as the environment. the clean water initiative. i was just in california, terrible drought. mark twain said a long time ago the whiskey is for drinking and water is worth fighting for. we have got to invest in our water mains, our water systems to make sure we are conserving society. if we want to be sustainable we

have to invest in broadband deployment. we have to have nobody left out when it comes to access to high-speed internet. governments have to make sure the private market does not behave like an oligopoly and cause people to pay higher prices for lousy service. we want to be like other countries where we have excellent service, high-speed service, ultra high-speed internet, at a reasonable price. there's a real role for state government to play to make sure when it comes to broadband deployment, that we make sure everybody gets a fair shake. >> is no doubt about it. you wanted to jump in? >> i want to come back on governor herbert's comment. we have some challenges were we have to work closely with the federal government.

another part of the discussion we have not talked about his renewable energy. we are very blessed in nevada to have wind and solar and geothermal assets. as a go through this competition with the other states, we have an advantage. i wish my friend governor brown was here. the state of california is going to a renewable portfolio fan. -- the standard of 50% by 2025. that puts nevada in a unique position to be able to work with the state of california and make sure we generate that. governor quinn talks about efficiency. we've talked about what is going on in wyoming and north dakota. the other component to this is renewable energy. which we are trying to work on. >> there is no doubt about it. in order to get to the crux of growth and jobs. you have to talk about the challenges. we have heard a lot about the

skills gap. let's talk about the cost of health care. speak to us like we are your grandmother. give us the opportunities and the challenges in terms of the affordable care act, in terms of what you are facing, the uncertainty of health care. this anybody at the table have a -- does anybody at the table have a solution? >> i have a solution. we are the last advanced nation on the planet to figure out a way to cover all our people with health care. for the last few decades when we were blindly following this funny economic theory that trust. -- in this phony economic theory that somehow prosperity somehow trickles down from the top, and inflationary cost of health care were eating our productivity out of the bottom of every small, medium, large business and industry in the country.

now we have an opportunity as individual states to improve the wellness of our people, and to change the incentives to once of wellness rather than treating hospitals as if they were hotels that can only be profitable if they keep all their beds filled with as many sick people for as many days and nights as possible. in our state recently we were granted a waiver from cms that allows us to shift towards making the global payments to hospitals. 10 of 44 hospitals have shifted to this method so they can be assured of what their payment will be, and so they can start focusing on improving the wellness of those citizens who are suffering from chronic conditions. you all know what they are. congestive heart conditions, diabetes, asthma. these hospitals will do better

as they reduce the repeated readmissions that those folks poorly treated and uncovered with health care would be racking up for us to cover. as a nation we have seen that sharply escalating cost of health care is being brought down. is it going in the right direction yet? no. but it's no longer that hockey stick that was eating up our productivity and ability to create a stronger middle class so we can grow our economy. >> yes, sir. >> i think the only way we solve the health care problem in america is to get people to take ownership of their own health. my previous job as president of a medical school, we did health risk assessments on faculty, staff and students. we have gone through a battle to get our waiver for the iowa

health and wellness plan. we have the goal to be the healthiest state in the nation. we feel the only way is to get individuals, communities, businesses, everybody on board working to -- it's not using tobacco products, it's focusing on exercise and nutrition and all those kinds of things, but also if you do a health risk assessment, know your own risk factors and risk -- work to reduce them. there has to be incentive to do that, and that's what we're trying to do for everybody. if we don't do that, we have more and more people with these chronic diseases and those are the most expensive. that is what is driving the health care cost beyond what is affordable. >> that makes sense. >> >> i agree with governor o'malley on the second part he said about moving away from fee-for-service.

you have to do that. you asked us to describe it. granny, come with me to the grocery store. we welcome the front store we , get met by the assistant manager of the store and as we go down the aisle, the assistant manager goes, you might like some of this. we go through the store and get to the cash register and say, have a great day. she walks out the door. your grandmother says, i'm not going to care how i pay for it if that is true and the grocery store has a manager walking around with me every step of the way suggesting things that might add to my bill. -- because that helps him or her as well, my bill is going to be higher. that's why we need to change the system. >> what is your solution? >> governor o'malley is right, going away from fee-for-service, where that assistant manager of the grocery store does not have incentive for the more you buy, the better they do.

the second thing -- there has to be something to wear your grandmother says, there is an incentive for me to make wise choices. >> accountability. >> but also transparency in the charging system that our health care providers have. you have to know what the price difference is. in new hampshire we saved millions of dollars in our employee health program because we provide incentives. we were one of the early states to compare how much different procedures cost and what the quality outcomes are at the same time. now we provide incentives to our state employees. we have a private entity that they can call up and say, i need to have a knee replacement. where is the best value in new hampshire? if they choose the best value, they get an incentive. this is about cost transparency

and accountability and individual motivation to take care of themselves, and critical access to primary and preventive care. many of us are expanding health care in our states because it's a smart thing to do. my businesses say to me if i have a healthy workforce, i have a better workforce. it is better for our economy. one of the things we really need to make sure is that all of these incentives come together and if we could have more access to preventive and primary care, so people are getting the care and getting the coaching so they understand how to manage their own health, we all do better. >> thank you. i believe a healthy economy is key to people possible and personal health. -- people's own personal health. if you want to help those that are poor and disadvantaged, the best thing we can do is give them a job and help them to have the opportunity to support themselves. i don't know what governor o'malley talks about with the

top down failed system. but i do believe we need to empower the wealth creators, those who find different ways to do things that government would never think about in the private sector. the bill gates, the steve jobs, the people out there creating wealth. as they create wealth they create job opportunities. if you don't like wealthy people, try getting a job from a poor person. it just doesn't work that way. as we expand the economy and make sure those innovators can -- that start may be poor, maybe rich, that is the american dream, that is what capitalism is about. in utah we try to do that here it we have the lowest cost health care in america, the fifth rated best quality health care in our state. it starts with individual responsibility, l the -- healthy lifestyles, people taking ownership and try to provide opportunities for health

care in the private sector to find those niches and ways to deliver services to people in a free market system. believe me, there are challenges out there and there are not any silver bullets to find a solution to the problem, but i have been critical and still remain disappointed that when we created the affordable care act, that this body was never consulted. to the states,me did not come to the governors and say what do you think. and it is a challenge. it would have been better if they said to states, hey, we have this health care is to this -- if you are in arizona or florida, you probably need more senior citizen end of care needs -- why doesn't every state develop their own system? pilot programs under the

concept of federalism, we were -- learn from each other, learn from the exchange in massachusetts, utah -- you might like it or not, but learn from our successes and learn from our failures and develop a system in all 50 states. what do that be a better approach than one size all that came out of washington? it's creating uncertainty. we heard from jeffrey immelt from ge, and he said the problem we are having is the economy is struggling because of uncertainty. small and medium businesses are not investing capital in the marketplace because of uncertainty. steve forbes estimates nearly $2 trillion of capital is sitting on the sidelines not willing to engage because of uncertainty. >> you make a good point, particularly the states and the ability to be included in this discussion. what do you say to the critics and ethics that skeptics who say you can't make it more favorable

to the top because it is not trickling down to the middle class. their wages have not moved. what do you say as the pushback on that argument? >> a rising tide raises all ships on the pond. >> it is kind of like an accordion, it expands and contracts, it brings people up. they expand and bring people out. >> you have seen evidence of that? >> absolutely. in utah we have a large middle class and we were just rated, if you are at the poor and of the , your chances of getting to the higher and is higher in utah than other states. we don't want to punish the wealthy saying you are getting does not helpich the poor. >> i know, governor nixon. >> what what i tell your grandmother? her medicare works pretty well. three percent overhead cost.

we are working to get the cost down as a country. but generally a program that was highly controversial when it came in, that was unacceptable to the public in many ways is now relied on by seniors and reliable. as the backbone of senior care. there are a lot of products he advantage,dicare that is number one. in that vein we have a unique opportunity in our time in history -- i agree with governor herbert on a lot of things -- but our responsibility now is for the working poor, to give them the same opportunity for health care that the senior citizens have had under medicare. that is our responsibility. we can talk about the politics of it, we can all do up raises on each side of whether rewrite the elephant or the donkey to -- whether we ride an elephant or donkey to work, but there is a unique opportunity with federal resources. we have an opportunity here as states, and what it requires us to do is to use our individual

power to make sure that as we move medicaid forward, we are making it most applicable to the various states and that is why we need to have a tremendous amount of flex ability but we need to use the resources. the third piece is, we have been talking about technology. health care needs way more technology. overcop in missouri pulls somebody, by the time that cop gets out of his car and walks to pick up the guy he can look -- -- or whoever is speeding a gal, whoever speeding, he has the person's entire record on the computer screen. if instead of speeding that car wreck went into a digital person that heard and was taken by a moments to the local er, they have no idea what that person's background is an as to be to figure out what medication they are on, with the history is, and what needs to be done. we have to take technology and get it into health care, while respecting privacy, get technology in health care also just as we are any other models. >> it is changing the game

already, i could not agree more. walker, bryant, and then mcquarrie. >> i have to ask you, i prefer to ride a harley to work. not a donkey or an elephant. [laughter] maybe not today. >> talking health care, i would say an elephant or donkey is a little more safe. we want to protect your health. -- where yourre helmet as the leader of our state and nation. a good example. >> talk about it and what your solution is. >> i think every state is different people get -- we did not take the medicaid expansion yet, but for the first, history everyone living in poverty is covered in our state. we transitioned everybody above that into the marketplace. but i want to go back to your

original question. had a good point about the supermarket analogy. i use the one about taking on our cell phones and say how many of us in america can tell us what our cell phone plan is? i know having two big teenagers, if i did not have unlimited texting i would be in the poor house. yet most americans cannot tell you about their hope -- health plan. if i did not have unlimited texting, my two teenagers would -- they can tell you that it is $10 to get prescription drugs, they can tell you it is the dean dollars to go to the doctor, but they do not know what it is all about. you talked about it in new hampshire with employees. one of the biggest areas of impact, just medicaid and state employee benefits. those two have a huge influence. i agree what you said about transparency. you think about that concept of a cell phone plan and applying it to health care, we have done it in a limited margin past the

marketplace. one of the few places, corrective eye surgery, but -- it had been something just for the superrich. yet today -- and i imagine other states as well, just about couple can save up for a hundred dollars and i have corrective eye surgery. i am not going to go to a doctor who gives you the surgery for 50 bucks with a coupon in the phone book so i still want quality. you match the two, and because i can make a logical decision based on the quality of references, and yet it can be affordable for someone who is not superrich. most decisions we make when it comes to health care are you let it. i am not going to shop around if i have a heart attack as to what hospital. but for the example you gave in new hampshire, i remember years ago one of my friends who had a flex account said the great thing to him and his family is they decided on a fairly routine

procedure that they could either have any hospital that day or they could wait two days later for something they did not need to have right away and save $1500 going to a clinic that is 20 minutes away. right now with our phones we would make those sort of decisions but we don't when it comes to health care. and i think we've got to move to a patient-centered plan, something the state even with the affordable care act can play a role in. if we give our patients, our consumers, more information, more data, more information to make those choices, if they have more skin in the game that can control costs. >> and they will be accountable for that. have done in mississippi is look at health care as an economic driver. in a new physician community brings about $1.7 million with him, the economic effect on the community. we are creating a thousand new positions by 2025, building a new medical school, broke ground on it last year, so we created

health care zones where we incentivize the medical community like we do automobiles, as we do aerospace, as we do other economic entities. i think what we are trying to do in mississippi is go back to access through the health-care industry rather than trying to take the health-care health care industry and centralize it on the government. hospitals have done a very good job. i can tell you those are really smart and ones not-for-profit so they don't have to pay taxes. if you are baptist, methodist, donna to pay taxes. if we create these health care medical zones we see manufacturers come in, more doctors, nurses. so, we are cheating it as a business so we can have more access. and i think there is a supply demand element we have almost forgotten about and competition

that i believe will lower the cost. >> you mentioned the challenges and i want to briefly mention the challenges that sometimes wake me up early in the morning earlier than i want. the first challenge that i think all the governors will have and the president and congress and every mayor and chairman of county commissioners out there is unfunded liabilities. that frankly are not on the books but we are sweeping them underneath the rug. not just talking about this year. we deal with our budget year-over-year. talking about liabilities that are not funded the next 10 or 20 years, regarding pensions, health care primarily. i think those are the two major unfunded liabilities that are not being talked and us about in our nation. it is going to catch up. and it is catching up in certain pockets of the united states at some time. any board of directors in the private sector has to list the unfunded liabilities on their financial reports.

not always the case and government. need to do some realistic accounting on unfunded liabilities. the second issue that continues to be a problem for governors and frankly we had consensus yesterday and republicans and ,emocrats on certain issues they will keep passing the policies on absolutely no idea on how the policy will be executed. most likely the governors or mayors or others are the ones having to execute the policy in the process. we need to find the talent to theute it, we need to find forecast executed and that does not happen overnight. regardless of how you feel about the house care act, it is the execution not being discussed in the development of a very thick bill which continues to be the scourge of it. we discussed yesterday, republic -- republicans and democrats

-- the military, they are doing it to our guards, not realizing the impact of the operation -- operation of our guard force. the other is the execution of waivers. there is a consensus in this group, as of yesterday, where please give us a little more , flexibility on waivers, and do not put us through bureaucratic time span and hunt to get waivers that may be working in other states. go ahead and approve them for states that may want those wages without going through span which isime far too long to get approval. we should not be having to ask for waivers. we are the state. we are executives. give us that flexibility. the last thing i think we are all seeking is predictability and some of the rules and procedures. ultimately what is happening now

the federal government is there changing the rules by the day and by the minute. and therefore, i don't know if it is the case with other governors right now, we are trying to forecast our budget for the future and frankly we do not know the medicaid impact of how many more people are backing the medicaid -- >> and food stamps, right? >> the term is woodworking. how many people are coming on of the woodwork. and we frankly are having to do not want to -- i do repeat with the acronym means -- guessing the impact of the national policy on the states. i think that is going to be the great unknown in the state budget the next three or four months is the impact of medicaid rolls. are people signing up for new insurance or are they are just signing up on government insurance that currently exists and expanding the rolls, which is the state's responsibility. those are the four major issues

that we as governors, both republican and democrat, we have to find solutions. >> how are we going to appeal to the president and congress to really move the needle on these issues? you are having a meeting at the white house. is that the crux of the conversation tomorrow? >> the good news about this group is we agreed to disagree on certain things. we have heard that already. we're agreeing on the issue of waivers, we are agreeing on the guard issue. i anticipate a very strong message to the president tonight and tomorrow would we have the -- when we have the great opportunity to meet with the president to say, this is where there is a united front among all governors. give us some flexibility. recognize the national guard cost in protecting our national security are much less than other costs and can end up saving you money, so don't you plead us.

is nice among us to find consensus, at least make progress toward those areas. confuses me,at even talking about some of these issues for a long time, i mean, the uncertainty of not knowing the rules, not knowing where the >>eral money is going business does not know the rules, either. my other big concern is will business start dropping insurance? we would like to have businesses pay for insurance, subsidized the insurance of their employees, but we do not know how they are going to go you know what, i will ask michael -- ask my employees to go on the national health care act and we will subsidize them a certain amount but now it is their responsibility. no one really knows what the impact of that will be, but from a financial standpoint, i think you are going to see a lot of businesses do that, and that is going to change the whole framework of health care in the

united states. >> have you already see people going to a 30 hour week? what you see people making sure they do not grow beyond a certain amount of employees and others reducing the amount of work weeks to find gaps in the legislation. >> governor o'malley? had an example of that, in oklahoma city not long ago about a man building storm shelters. we had a terrible storm in may of last year and we lost some lives in moore, and he had a storm shelter company and had grown it up to 70 employees and with the affordable health care act and the new mandates, he said his health insurance costs will go up about $250,000, so he chopped his employees down to 50 and then all of a sudden make it the lady and he let all those also stopped which his business from growing. it kind of had the reverse effect. but back to what you are talking

-- were talking about a moment ago. we think government arm leading the way. -- governors are leading the way. governors have to find solutions, other than -- unlike in washington, we see a lot gridlock and not issues being solved, we have to solve our problems, we have to balance our budget, we have to work on education and growing the economy and creating jobs and health care policy and infrastructure and energy and creating a better pro-job business climate number so we can be competitive, not only within our state but also with other foreign countries. that has been our message to the president, is to look to the governors. we do have great solutions for health care issues, education, workforce, creating energy, creating jobs. we are addressing the issues that are important to america at a time where we see a lot of in action and washington, d.c. i think my cochairman, governor hickenlooper, has been waiting for a few moments to say something.

>> of course, whatever the chair says. one thing within all of this is a couple of things that we are making progress. said the other day every day the country is getting a little better. not as fast as we would like. but every day the world is getting better. i see the level of integration between states. colorado is a big aerospace -- probably per capita the number one aerospace state in the thatry, and we have a lot is widespread putting things together. sierra nevada spaced assumes -- space systems, he has about 18 different states, if i remember correctly, with the different pieces. space and and deliver deliver space system -- space systems, and they have businesses, they work with vendors all over the country.

those businesses are all working seamlessly together to get the product done with all of my fellow governors. we compete all the time on a weular basis, but sometimes forget how well we work together. , i expect there is not a state of the country where they did not have some kind of presence. the ability of this country to work together and the ability of us to fix the infrastructure issues, whether it is education, transportation. we obviously have an lack of capital available right now for infrastructure, but again, governors are going to the down and work of met together and figure out a way with the federal government. we went to see the president a month ago, and he was very clear that he recognizes that kind of a need in saying no matter what the industry, we will try to change whatever the rules and regulations are and accelerate how the permitting process

works. still make sure we have the public voice and we have the environmental review, but sequentially we will do it parallel and what would take seven years in the old days will take one year. that is progress. and we should recognize. we are being offered a chance right now to work with the white house on a direct basis to work with these agencies and be more efficient and be more effective. >> while we are talking colorado what are you expecting the financial impact of legalizing marijuana be on your state? >> it is more significant, i think, then most of i taught but it is still early to see. when i was in the restaurant business we look that flow through. people made a lot of purchases, set up a lot of stores. we are not sure what the repeat business is going to look like. one thing are focused on is not take this as a windfall and start putting into other uses. we are not sure what the unintended consequences are going to be. whether we are going to have a lot of kids to slip off the tracks and will need resources

to get them back in the right direction. we are very worried about people looking at marijuana consumption really as harmless. regulate it aso rigorously as we do alcohol. as someone in the restaurant business, the first time for the second time you serve an underage person in your restaurant, they suspend your license, usually by most state by the third time you lost your license forever. try not to take the windfall money and not just become dependent upon it. we did a was at cnbc number of special reports about the business of marijuana. and actually it was the leading -- the highest rated program cnbc had ever seen. we were all looking at this and thinking, what is going on in the country? do you have an estimate in terms of the financial impact? >> we are saying for the first

full 12 months, we think the tax revenue for us, for the state, -- the business looks like it is about a billion dollars. but it is a limoneira estimate and with to take it with a grain of salt. we don't have an updated view. >> as we wrap up, gentlemen and ladies, i know you are meeting with a number of important people to rest of the day am going to the white house tomorrow. ande can go around the horn come up one important solution or change or impact that you would like to come from the white house and congress this year or the next two years, what would that be? we would like to hear from all of you. i try to make a very conversational, jumping around, but now everybody will hopefully have an answer to that. i will begin with you. >> we've got to raise the minimum wage.

there is a principle as old as the bible, if you work hard, you are a mom and a dad, raising children, she -- you should not have to live in poverty. manhould listen to the time of the year last year, pope francis, he talked about an economy of inclusion and not exclusion. if we want to have more consumer purchasing power, 70% of our economy, raise the minimum wage. governor come with what governor, what are you going to tell president obama? >> i want to tell him it is a terrible mistake to follow the pentagon recommendation and cutting the national guard. the guard has been really instrumental in fighting these wars in both iraq and afghanistan emma and now that we are seeing dramatic cutbacks in the military, the regular army has increased dramatically. the size of the guard has stayed about the same. andeed to keep the guard not cut the guard.

and frankly, it is more economical. this is something the governors are united on a something that is important. it is not always easy to go up against the pentagon, but we think this is critically important and we want the president to know that it would be a terrible mistake for him to cut the national guard in his budget. the board we need the federal government to give us more flexibility to appreciate the way we want to run our programs in this country. there is a difference between nebraska and new york, between california and new hampshire and we respect that. more flexibility in every program. i'm an old appropriations chair, and i still think the biggest deadweight on our economy is the federal budget deficit. economy is the strong enough now that the president needs to get deadly serious about solving that problem, getting into the entitlements discussion, and provide the leadership we need

there. it is absolutely going to continue to kill us unless we face up to it. >> i think overall, it is more about than just talking to the president. part of the uncertainty is -- in the overall economy is the dysfunction that occurs in washington right now. default on ourto debt. like out in the real world what happens in the states because somehow we put aside some of her differences and get things done. we need to be doing that more in washington and not just yelling at one another. >> again, we have been talking about this for so long. can you point to one or two things that are the issues in terms of the barriers? is it just too much red tape? why can't we move forward with solutions and eliminate this uncertainty? what i've -- >> i think in many ways we are moving forward with solutions.

i had an undersecretary of agriculture out last week saying how could we actually move some wood off of federal lands like on state lands? it is a different world with intensified rhetoric and people not wanting to find solutions. i live in a state where almost two thirds of my legislature is the opposite party. nonetheless, we figured out a way to actually cut taxes for every business and make record investment in education, raise college tuition and six the pension system without raising taxes. that anda way to do found some of the common ground as we were looking forward. i don't think washington dc right now collectively is trying to find areas of common ground to move things forward. >> what do you want to tell the president and congress? >> i think there's too much playing of louis king of the hill, and that gets in the way of finding solutions. we as governors go back to our own hill and we work together

with those because we have to solve problems. what i am going to suggest, the need to be a rebirth of the concept of federalism. we are partners with the federal government and we are not junior partners. we are co-equals and we ought to be treated as such. we have something to say. we have it ambles. we have opportunities. electability has been mentioned. the concept of federalism, states being coequal partners with the federal government needs a rebirth and it starts with the president and the congress. >> i think we need more flexibility. regulatory and permitting areas. i think that has hampered a lot of the progress. >> of course, thanks for dinner. that would be one. [laughter] >> that is important. >> maybe not elephant, maybe not horse, and, a

three, and solid energy policy to get his back on track. >> you are going to ask for what? >> related to what has been said here, i think what i see is kind of the lipservice to the all of the above approach but i don't see it in reality. we see, as has been discussed, timelines that are not acceptable in the energy business. we see undue regulations and we see a dismissiveness towards what states are trying to do. we live in our state. we can't pass this off with regard to budgets. and terms of, saying, let's kick the can down the road. we have to get things done. when it comes to that, you see states take great environmentally to that i think are dismissed by the federal government at their peril and our peril. one think i am hearing -- minute, we will quickly go around. >> i will go what governor

dalrymple said, the federal budget and the uncertainty surrounding the debt ceiling and every year the uncertainty surrounding when or if a budget will be passed is creating too much uncertainty in the marketplace and it impairs our economic recovery. >> because of you don't know where the federal dollars are coming from? >> i mention nevada's 86% federal land. i spend most of my days of sorting out over regulations and mandates in these issues when we know our own backyard. >> flexibility and programs for sure. and adding on energy policy, we know the midwest in particular with the propane shortage, was a good wake-up call to the fact that in a larger sense we need a national energy policy that really does embrace all of the above, not just energy exploration but because it is a national security issue and an economic issue and transportation -- we are hanging out there wondering what will happen next in transportation and i think as governors winning

to understand we need a way to get product to and from market. >> education is the best economic development tool, preschool, high school, college affordability or worker training. i also think it is important for all of us to continue to support families in the military as we wind down in an -- in afghanistan. this country went through something after vietnam where folks came back were not welcome back and i think everyone here, as well as the president and congress had been a good job of will want to be supportive to make sure we transition these folks back into their day jobs, back into our communities, that we support them all the way home with jobs. and i want to thank the president for doing just that. >> i might suggest he use his pen and his phone. he can take his pen out right now and the -- for the things we heard around the table. we are all in unison in more flexibility. and talking about the national guard. worried about the national debt. write those things down and pick the phone call us. if things are going good in the state give us a call and ask

thomas how are things working out? i see you are trying to use an innovative idea. is that something we could try in another state and is that something i can assist you with as president and let the new innovative idea and this great network of states work elsewhere? >> communicate. as you mentioned as well. >> by this time he has been communicated with fairly thoroughly, after listing to all of our advice. i think the rollout of the health care land -- whether you agree with policy or not -- this is a big country. we hear from all of this is we can cut this down into 50 bite-size pieces, and i think if you let us assist with implementation, ending us more flexibility, i think it will go down better. >> you've got to become part of the conversation, no doubt about it. >> >> ability, transportation, let us unleash our energy resources. we shouldn't have to ask the federal government for permission. one other thing -- i think we need clarity from the white

house on the issue of addiction and mental health, based upon previous comments that have been made on drugs and other things, and alcohol. the addiction issue and the mental health issue for our also another very serious challenge for us and i'm worried about the next generation and their brain capacity. to me, that is something we cannot ignore. >> it is seeping into thezeitgeist, and it is interesting in davos it was on the agenda. >> a lot going through my mind. quickly, if it down i had 10 seconds with the president. give us the flexibility, give us predict ability from the government, and number three, call us before you, with a new policy that is going to affect us. allow us to give you input because i am completely different band missouri is or scott over is in wisconsin and our needs are completely different. this is not a one-size-fits-all

nation. >> fair enough. i will end on the chair. --'s go to governor >> all of those initiatives will want to embark on to grow our economy to be competitive globally, they take resources, and i will ask the president to push for the marketplace fairness act come internet sales, where states are losing the sales tax revenue to internet sales. it passed the senate i think 60-20 seven. so, if it can get through the house, have the president sign it, that is revenue we can put toward higher education, tort k-12 and the roads and bridges that to be competitive economically. and tohe president congress, we are a strong and resilient people. we have challenges in education, infrastructure, energy, health care. we talked about it this morning. as the great robert frost said, the best way out is always through. we got to keep working together.

>> i would thank the president for having shown more flexibility than either of the past two administrations on point of education, on points of health, on points of environment, transportation. i would start with thank you. i would ask him to lift more women out of poverty by making sure that we waive -- or raise the minimum wage. the reality is that the five percent-60% of people earning the minimum wage in this nation are women and it is one of the biggest factors of women living in poverty, so i would ask him to get the job done. >> governor hickenlooper. >> i would repeat all the things i agree with that have already been said. i think we have upwards of $2 trillion now of largest businesses and corporations have profits kept outside of the united states but i think it is perhaps time to get a deal done whatever the interest rate is, find the number -- maybe 10% -- they be some of that tax money goes into a loan fund or something for infrastructure that helps accelerate our

ability to invest in our roads, bridges, redundant broadband, medical, etc. >> governor fallin? >> we appreciate the president meeting with all the governors. as he heard around this room, there are a lot of great ideas, a lot of the solutions to problems being proposed by governors. once again, continuing to ask that flexibility. i'm think you heard both democrat and republican governors saying we have innovative solutions to problems facing america. we are implementing those solutions, and give us the flexibility. as we seeuncertainty in federal rules, regulations, and hamper investment and job creation. the best way to help people get out of poverty, and get them a good paying job, give them the skills that they need. i asked him in energy producing state, i would like to see the keystone pipeline finally moved. >> i am glad you said something real specific. that is terrific. finally cameif we

up with solutions, but certainly having a discussion and getting everything on the table and specifics is the beginning. thank you so much for having me. good luck for tomorrow and for the rest of your meeting. i give, everybody. -- thank you, everybody. [applause] >> the governors only session. if you take a five-minute break and move on to the governors only session. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2014]

>> today the brookings institution will host a discussion about the future of u.s. ground forces with military officials from the army and marine corps. we will have a live at 10:00 a.m. eastern on c-span. remarked,he day, california congressman buck mckeon at the national press club, the chair of the house armed services committee and he is expected to talk about the current situation in afghanistan as well as the obama administration's plans about withdrawing u.s. forces later this year. 1:00 p.m. eastern also on c-span. coming up next, "q&a" with former congressional staffer talking about his book of

washington politics. 7:00 a.m. eastern, "washington journal" live with your phone calls in the latest news. later this morning, a discussion hosted by the brookings institution of the future of u.s. ground forces. live at 10:00 a.m. eastern. ♪ >> this week on "q&a," retired congressional staff member mike lofgren discusses his recent review of former defense secretary bob gates' memoir along with his own book, titled "the party is over." >> mike lofgren, author of "the party is over," in bob gates' book, he writes congress is best viewed from a distance. the farther, the better. up close, it is truly ugly. how many years in your life did you spend working for congress? >> i spent 28 years in congress as a staff member, first as a

personal staffer for congressman john kasich. then as a staffer for the budget committee, the house budget committee when he was chairman. i was the analyst for national security affairs. in 2005, i moved on to the senate and work at the budget committee there in the same capacity. >> what do you think of that statement? up close it is truly ugly. >> it generally is. i would want to temper that. it has been a long-time habit of everyone to criticize congress because they think that resonates with the public. it truly has become to some degree a horror show because of