as you have heard, there are issues we do agree, we agree to disagree. >> yes, absolutely. >> can i just say, if raising the minimum wage is going to cost fewer jobs, is raising the wage of economists who comment on it cause us to have fewer ?omments -- economists [captions copyright national cable satellite corp. 2014] [captioning performed by national captioning institute] >> attorney general eric holder will inter a -- address attorney general's from around the country at the annual meeting tomorrow. he is expected to touch on topics like the recent settling industry, andage

mandatory minimum sentences in drug cases. live coverage at 10:00 a.m. eastern. 3, there will be a hearing on disabled military veterans and we will have live coverage starting at 2:00 eastern. >> i think there are some myths out there. i think that people think the maraschino cherry is some righteously preserved product and it is no different than a pickled cherry. the brine process is no different than with types of sulfate to use in making wine. really, it is a -- i wouldn't call it a healthy product, but i would call it something that is a tasty treat. >> what you see here is cherries in various stages of process. the cherries that come in, even though they put them in water, they will have right in the

fruit and so they will go through an extensive washing to get the sulfur and the call cm -- calcium salt out of the fruit. the practice of making them is -- basically, you taking that brine and you're soaking it in a stronger and stronger sugar and color solution. over the course of that syrup theg schedule, you can see concentration pickup. here are is some fruit that is early in the process. it is lightly colored. you can see my child are cleared -- you can see how much darker colored they are further along. it is that cycle of the infusion and where is that in the process. >> next weekend, book tv and american history tv look behind the history and literary life of salem, oregon. andrday at noon on c-span 2

sunday at 2:00 on c-span 3. >> more from the national governors association. now, a discussion on the job a k -- job creation and the country. >> good morning. if i could have everyone's attention, please. if i could have everyone's attention. elvis is in the building. where is governor haslam?

elvis is in the building. not in the room, but he could be. if you don't take your seats, elvis may come in the room. we are glad to welcome everyone once again to our opening session of our winter meeting. thank you all for joining us. a great program this morning, a moderated discussion about growth and jobs in america. it is a critical issue that all governors care about, work on a daily in their individual states, how do we create jobs and the best business climate possible, how do we work with our employers. yesterday we had a great discussion on our chair's initiative, and america works,

talking about how we realize our education systems, career technology schools with the skill sets needed in tomorrow's workforce. we also talked about how we can develop a plan of action, give action steps to our governors. the purpose of this session today will be to discuss employment trends and talk about growth opportunities, and the ever changing economic climate of our 21st-century. it's my great honor to introduce our moderator for our morning's panel. maria, you have a hard name to say. we are glad to have you here. she's an award-winning journalist, one of our leading financial journalists, certainly

known throughout the united states. she has spend more than 20 years in the business. she has been the face of cnbc. earlier this year she was named the anchor i global markets editor for fox business network, fox news channel, where she will coanchor and be the daily economic person who will talk about economic related programs. she has received so many awards. she has also been the first among many things, the first female journalist inducted into the cable hall of fame and was

the first journalist to report live from the floor of the new york stock exchange on a daily basis. maria is also the author of several books, including "the weekend the changed wall street" and "the 10 laws for enduring success." maria, as i have been reading about her, she also has some unique things about her. she has a pop-culture fan club with some group called the ramones. and a video out there. do we have that by any chance? [laughter] ♪ >> we like that.

welcome. [applause] >> when was the last time you heard the ramones rock band at the national governors association meeting? i speak with ceo's and heads of state and business guys all day long. i'm hearing from them what the issues are in terms of creating jobs, and i'm thrilled to be able to talk right now to the stewards of our country. i thought we would have an interactive discussion. many of you have agreed to have a conversation. this is not about me calling anyone out.

it is about all of you talking to one another and allowing the public to truly understand where are the opportunities, where is the growth in america today. let's talk growth and opportunities, then i want to go into a challenge. some of the challenges that each of your state faces, and then we will end on opportunities and solutions. we have heard a lot about energy and agriculture, a little about a rebirth of manufacturing in this country. certainly entrepreneurialism taking hold across the country. small businesses. some auto and banking resilience as well. who can kick us off and tell me and the group, where is the growth in america today? governor. illinois. >> five years ago when i became governor, we had 200 jobs at

chrysler build it in illinois, 4500 jobs here now. ford had one shift on the south side of chicago. they make the ford explorer. mitsubishi in bloomington has a new product line. auto and auto supply is a key part of the american economy, better than it was five years ago. we're exporting more and want to continue to do that. that's a key part of our manufacturing economy and made in america are our favorite words. >> you've got the chinese, the japanese, the brazilians -- you have all these carmakers coming at the americans and trying to get their cars out there. governor beshear, you've seen a similar situation in terms of rebirth of auto. >> manufacturing is making a

huge comeback in the u.s., and it is in kentucky. kentucky is the third-largest producer of cars and trucks in the country now. we are close to ohio. we will hopefully bypass them shortly. governor kasich and i will fight over that. manufacturing is so much where the jobs are at these days. it's not the idea of backbreaking work and putting aa peg in a hole. this is high-tech stuff. it requires education and training. we are very aggressive in our recruiting efforts, but ceo's everyday tell me that incentives are important, infrastructure is important, all these other things are important. the most important thing is an educated, qualified workforce. that's what they have to have to succeed and that is why we are zeroing in on workforce training

and working with the industry and partnering with them to try to tailor our workforce development to what is really needed in this 21st-century economy. >> increasingly what you hear, everything is changing as a result of technology. we're going to get to that. how do you keep that stronghold, the auto sector? >> what steve just said about the skills are very important because we have a unionized workforce at our auto plants. we work with management for developing these skills for 21st-century manufacturing. we use our community colleges. we heard how important engineers are, but also welders. if you want a job for the rest of your life, learn how to be a welder. we have a lot of our service or

members returning from iraq and afghanistan. i just went to southern illinois and veterans learned how to be welders, got union cards and paychecks. those are key parts of a manufacturing and growing economy. >> is the onus on the state to provide opportunities, or is this a business-state partnership, the skills gap? >> it's a partnership. we all agree with what has been said. as governor beshear said, infrastructure and tax policy is important, but nothing trumps the quality of the workforce. you asked a specific question about, how do we keep this competitive advantage. whether it is american or foreign cars, made in america is the key. two points that are separate and

apart from what we talked about all the time and are important to the competitive advantage. one is an example of what a news network has done. there are anecdotal stories about the results of that. it's abc. a number of years ago, abc started -- if you get a minute on the national nightly news, that's a long segment. they started that thing about buy america. the patriotic results of the american consumer -- if you are close in price and quality, if you go educate the american consumer, they will go out of their way to buy american for the reason you are talking about. i remember one specific segment. there was a nail manufacturing company, and a small business that may have had 10 or 12 employees manufacturing nails. they ran a segment and they went

back a year later and had 200 workers now. the other thing that can and should be done is more of our corporate giants need to help the way walmart is done. walmart is said we will spend $50 billion over 10 years to buy america, to re-shore american manufacturing. if you have been making toys, ride-around cars, in china, you bring that back, we will give you a seven-year contract. you have a built-in buyer of your manufactured item in

wal-mart if you make them in america. we have got to have the re-shoring of some of this manufacturing. we need to do all the things everybody talks about. we need to do the job training and get the skills gap closed. we need to do research and development. over and above and in addition to that, our private sector can also appeal to the patriotic american spirit and reward companies who will re-shore and bring stuff back here. >> the private sector can be hugely part of the solution here. the media can be a big part of the solution here. talking about what all of you can do. what all of you can do to create policies to get that private sector to actually create jobs.

>> i heard a businessman say, today's manufacturing companies, it's not your grandfather's manufacturing companies. things have changed so much. years ago, if you had a high school degree, 80% of the jobs in america, you could reach the middle class. you might be able to reach the american dream. today only 35% of the jobs in america require a high school degree. we know there's a new minimum that we've got to have more than a high school degree, a career vocational school certificate of some sort, an associate degree, or high school degree. manufacturing in america is not your grandfather's type of manufacturing where you show up and you are there. now you have to know how to work the machines, computers. that is our challenge as governors, how do we develop the type of skilled workforce to meet the jobs of tomorrow and

close that skills gap and be able to have the type of competitive workforce so we can compete internationally? we know we're falling behind other foreign countries when it comes to reading, math and science. >> as he said, is it a partnership of business and government? how do you do it? >> we need to listen to businesses about what type of skills they need, and what types of jobs they will be creating. one of the things we have done, we have analyzed all of our different educational attainment levels and talked with core industries in our states. if we know we need a lot of welders in a particular state, then we need to have more welders. or maybe we need more engineers in those types of heavy industries in those states. it varies.

>> governor corbett, i'm going to get you in a second. >> you asked the question, what should we be doing. i think sometimes government tries to do too much. i'm a free market person. i think the wealth creators and innovators in the private sector need to be empowered. in utah, we have tried to create a system where businesses can excel. we have a simple phrase. we want to keep government off your back and out of your wallets. we have done tax reform. we have done regulation reform. we want to make sure there is level playing fields. no matter what the niche is in the marketplace, there's a lot of different areas to excel.

we are having success in manufacturing, aerospace, tourism and travel. we have tried to let the marketplace find a niche as opposed to government weighing in on tipping scales. >> one of the things we can do as leaders is work with the private sector and say, what is your needs? montana has the fastest growth in degrees, two-year degrees. i said, i never want to be talking to an employer who says to me i would love to locate there but we don't have the skill set. we went to make sure that our higher education system is responsive enough to the needs of employers have. we have been bringing the employers together in montana and elsewhere and saying, what do you project? then we can work in our curriculums and make sure we are getting the talents and training. >> it is more than the skill

gap for companies to decide to locate in the states. >> if you look at where government touches business, we touched them in taxes and regulations. providing a fair tax system, a more streamlined tax system, reducing taxes as much as we can allows businesses to reinvest their money in growth, allows them to bring more people into the employment sector. from the regulatory side, oftentimes what you see when you come into office is a regulatory system that may be heavy on regulations and heavy on not providing a level playing field. we have a growing natural gas industry in our state. they want to know there is consistency across the board,

in the application across a wide state, and what the rules are. it is one of the most important things we can do. we have some great partnerships to go to these young entrepreneurs to help them get started. a little bit of investment on our side, and then you watch the major angel investors come in and help grow those people. we plow the field and seed it and get out of the way. >> you have this competition for venture capital. competition for the small investor and innovator. you're talking about beijing, europe. you have innovators trying to become the hub for innovation all over the world. >> thank you. i would echo what the governors have said.

we're working hard on the skill gap. it's important at a foundational level. i come from a very small business state. new hampshire has some large employers, but we are a very small business state. one of the things we heard from businesses, especially the small ones, is they don't have the kind of resources that can help them leverage, whether it is human resources or getting up to speed on how they could become an exporter. new hampshire is the fastest-growing state in the country in export increases because we put a little bit of money back in our budget to help our small businesses develop that type of export. we doubled our research development tax credits. we capped the amount per business that they can take. we are looking at having a gold

standard for businesses that follow the law. maybe we can ease some of the compliance paperwork for them to help them create jobs. we're working on encouraging private investment, whether through incubators, but trying to have matchmaking sessions for small businesses and entrepreneurs with investors and finance companies. the thing we have not talked about yet, the other piece of this is to make sure we are supporting working people and developing a strong middle class. whether it's expanding health-care coverage, we all know the cost of health care has been extraordinary for middle-class families, freezing college tuition like we did in new hampshire for 25 years. raising the minimum wage and making sure that women and men

earn the same for the work that they do. i heard recently, a person said in an anecdote, when my wife is paid fairly, my whole family does better. those are the things we can do together, making sure that our businesses are leveraged and regulated fairly but well, and making sure we are innovating in state government too. we should be making sure were looking at the customers were trying to serve and bringing that customer service culture to government. then i think we can really help our businesses do what they do, which is create jobs. >> i want to try to get some solutions in terms of the cost of health care and the uncertainty in washington, and what that has done to having a clear path to growth and jobs. governor, you wanted to jump in. for your state, you have got to look at it in two ways. rural, urban.

is that a difference in terms of the approaches you take towards growth and jobs? >> absolutely. there's a difference between rural and urban. our urban areas are going through a great recovery. we are the 10th most populated state in the country right now. we are getting great recruitment. our greatest challenge in this country is, how do we deal with rural towns that were small manufacturing towns of the 20's and 30's, and how can we connect them to the major economic regions? one of the issues is labor. there has been a disconnect between education and commerce. we may be training people in education on what education people want but not what commerce needs. it is very discouraging when an employer comes to me and says, i have job openings but even with

a high unemployment rates we cannot connect the two. what we as governors have to do is we're going to be asking and we are asking our universities and two-year schools and high schools to start training kids in those areas in which you can actually get a job. teach them those skills where they can be a welder and make $100,000 a year. we are spending tens of millions of dollars in education and we need to be adapting to the market needs, in addition to exercising people's brains and have logical, problem solving skills. we have a limited amount of money in education. we have to make sure that money is flexible and can be moved quickly to the areas of commerce where it is needed. we have an overabundance of lawyers. [laughter] >> yes. that's a good point. we have an overabundance of bakers of well.

>> we are graduating the same number of lawyers and even more at a time when we don't have enough engineers. why are we not shifting money from legal degrees to engineering degrees? at a time when we have plenty of sociology majors, we don't have enough electricians and mechanics. why don't we shift that money over and allow the way we spend our government money adapted to what the market is telling us they need at this point in time. we're having to move institutional ships that are pretty set in their ways. that is one of our great challenges, since we all have a limited amount of money. >> there is such uncertainty as to when the next federal dollar is coming. >> you get this much money based on how many students you have,

not based on the results of how many of the students are getting jobs. the money was directed towards cheaper classes. those cheaper classes were not necessarily getting job placement. the auto mechanic and welding and engineering classes are the most expensive courses, but the job placement is 100%. we have to make sure we're directing the limited government money to those areas where we can get those kids jobs so they can pay their student that. we use that skill set to take companies from my competitors here. that is our major salesforce, selling point, marketing point in competing against my friends here. we have skilled labor. >> it is interesting to hear that the skills gap is so prevalent across the country.

we are going to go to nebraska and then hear from tennessee as well as wisconsin. >> i think education is very important, and we talk about low taxes and regulation. we are trying to make sure our kids understand we are competing globally. i have been on 12 different trade missions from cuba to china. we have done reversed trade missions where we brought 500 people to our state. it's a very comprehensive approach. the second lowest unemployment rate in america. there's a reason the number one american capitalist is located in nebraska, warren buffett. we are a low regulatory environment. i agree with what everybody is saying. we are competing globally today. we are prepared to do that and willing to compete against adding other state. that competition helps all of us get better. >> you don't think people understand today that we are

competing globally? >> i can go to the smallest town in nebraska and they know their products are being exported to china, japan, europe. they understand at least in our state. >> you mentioned the export story you are seeing. >> i think people understand it and there is a need for helping our young people understand where the jobs will be, then helping them develop the pathways to get their. it's not just what we are teaching, but what is the demand for different subjects in schools, and how do we help our young people through career and college readiness and competency-based learning, understand the today's manufacturing is not your grandfather's manufacturing, and understanding where the markets are.

also really understanding that in addition to technical skills, they're going to to need to be able to communicate and collaborate in a way that has never been necessary in the past. it is needing to be able to demonstrate that you can work together. you mentioned that businesses are worried about uncertainty in washington. i'm sure other governors have similar stories to tell. we passed one of the most bipartisan budgets in over a decade. i thought that was only going to be an inside the state capital story. everywhere i went in my state, people were really excited that we had reached across party lines, gotten a budget done. people understand the value of that. they do that in their daily lives. >> we don't have the luxury of not passing a budget. you have to pass a budget and

live by it. >> let me go back to the question of what we can do about it and it's a world market. there are two trade agreements up right now, the transatlantic trade investment partnership and pacific trade partnership agreement. the president is for it and republican congress is for it and we still can't get it done. >> why not? >> the president is for it and the republican congressman are for it. >> everybody is not for it. get it. >> go back and compare your exports to countries that you have trade agreements with, that the u.s. has trade agreements with. in tennessee, our exports are 10 times the number that they are with countries we have trade agreements with. the president is pushing it. i think the governors can make a difference if you will go back and see where your legislators are and compare your exports for

countries where you have agreements. >> that is why manufacturing is so important. tell us what you are doing specifically. >> i will go back to your original question. i would add agriculture. terry and i have talked a lot about that. agriculture is booming in an export market in the midwest. water is a big asset, not only for friends in the southwest, but china and india elsewhere. on job training, i'm not a big spender but we put $100 million in our budget for job training. we heard the same thing all of you are talking about. if the whole spectrum, from our universities, when nga was in utah with gary we heard about western governors university.

we liked it so much that we had university of wisconsin do a flex option so that people who had some college credit but did not have the time or money to get back in the classroom could do it quicker. we have done it in our technical colleges. it's not even just in our high schools with dual enrollment. it's all the way to our middle schools. we put money for kids as young as six grade to do academic and career planning. if you don't get the kid sooner, all the things we talked about how manufacturing is changed -- not only for kids, but parents, guidance counselors, they are past that. all of us can use the bully

pulpit but we need business professionals to do the same, that we should be just as proud of our sons and daughters who choose to be welders as we are of our sons and daughters who choose to be lawyers. i spoke to our education convention a month ago where all of our school board members came in and i asked them to consider changing their brochures and websites. if you go to any of the schools in your state, i would gather that they probably tell you how many kids go into a four-year college or university as a percentage. that is their selling point. we should change that to say, how many of our sons or daughters go to a two-year or four-year college or university? we need bills -- those careers

as much as we need a four-year degree. >> yes, sir. let's go to iowa first. >> one of the areas that needs to be stressed is stem. this is where a lot of the good jobs of the future are and it's also related to agriculture because what is happening in agriculture is we are now through bioscience converting to all kinds of new products which are higher in value, and that's one of the reasons why agriculture is doing well. it's food, feed, and fuel. in addition to that, medicine and health related. these are where the real good jobs of the future are. we have a stem advisory group that the lieutenant governor is heading. we're trying to put focus and emphasis there and we have a

partnership with private sector business as well as with the schools. it has gained broad-based bipartisan support. >> we have talked to manufacturing, autos, agriculture. you're bringing up health care and biosciences. right now it is qualcomm that is backing a clinical trial where as you insert a sensor into your bloodstream, it will tell you two weeks before you're going to have a heart attack. way technology is changing health care is changing the game. it is real manufacturing and education. what i'm hearing is a lot of positives. i don't think we can talk about growth in america without talking about energy. let's go to north dakota a talk about that. then we will come back to wyoming. >> one of my favorite topics, thank you. north dakota is the greatest job creator in the nation for the

fifth year in a row. what i want to bring up is that we keep talking about how we create opportunities. i think the opportunities are here, now. i see it out there throughout the country, and especially in a place like north dakota. i can advise a young person in north dakota to go through an 18 month program and come out and start at $85,000 a year today. why would that person want to pay yale $200,000 when they can go for 18 months and get paid $85,000? the opportunities are crazy. they are out there. we don't know that really the job is to coach people to get to these opportunities. why are we hearing over and over from the national media that things are so tough and

terrible? i see opportunities out there for everybody. energy is an incredible opportunity. i run into people and i say, the u.s. is producing more petroleum than saudi arabia. they question me. the opportunity to use ample energy supplies in north america exists today. people are just not conscious of the opportunities that lay right before us. >> what is stopping you from making this a year job creator? is it permitting, 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. jack, we are gianing -- 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. 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? >> 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? 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 have worked hard in mississippi. we are the second best state in america. oklahoma -- to inves. -- 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. 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. >> 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. 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. 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

client is -- climate as well as the environment. the clean water initiative. 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. >> i want to come back on governor herbert's comment. we have some challenges were we have to work closely with the federal government. 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

standard 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. >> there is no doubt about it. in order to get to the crux of growth and jobs. 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 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. he somehow trickles down from the top -- 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 feel the only way is to get individuals, communities, businesses, everybody on board -- 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, no 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. >> i agree with governor o'malley on the second part he said about moving away from fee-for-service. you asked us to describe it. granny, come with me to the grocery 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. the 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. 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 differences. 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 in 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. 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. 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. 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. as we expand the economy and make sure those innovators can start, and the rich, that is the american dream, that is what capitalism is about.