starting monday on c-span, the c-span radio app, and www.c-span.org. >> in new york city, republican presidential candidate donald first joints campaign appearance with indiana governor mike pence, his vice president will running mate. here are the remarks by governor pence. mr. trump: with that, i would like to introduce a man who i truly believe will be outstanding in every way, and will be the next vice president of the united states. governor mike pence. thank you, everybody. [applause]

gov. pence: on behalf of my family here and looking on, would you join me in thanking and hisrump, melania, entire family for the sacrifices they are making to make america great again? [applause] gov. pence: and i thank donald trump, the confidence you have placed in us, and i accept your invitation to run and serve as vice president of the united states of america. [applause] gov. pence: i come to this moment deeply humbled, but with

a grateful heart. grateful to god for his amazing grace. grateful to my wonderful wife. and our three incredible kids, michael, charlotte, and audrey. and grateful to this builder this fighter, this patriotic , american who has set aside a legendary career in business to build a stronger america, donald j. trump. [applause] gov. pence: and let me say, having had the privilege to spend time with this man and his family out of the limelight, i know what all of america will soon know even better. these are good people. donald trump is a good man, and he will make a great president of the united states of america. [applause]

gov. pence: donald trump understands the frustrations and the hopes of the american people like no leader since ronald reagan. the american people are tired. we are tired of being told that this is as good as it gets. we are tired of petty politicians in both parties in washington tell us we will get to those problems tomorrow. as ronald reagan said, we are tired of being told that a little intellectual elite in a far distant capital can plan our lives better for us than we can plan them for ourselves. donald trump gets it, and he understands the american people. [applause] gov. pence: i truly am deeply humbled to be at his side today. when i got this call last wednesday, i could only think of

that ancient question, who am i, o lord, and who is my family, that you have brought us this far? let me try and answer that question for a few minutes. people who know me well know that i am a pretty basic guy. i am a christian, a conservative, and a republican, in that order. [applause] gov. pence: i currently have the privilege of serving the state that i love, but i am really just a small town boy. i grew up in southern indiana with a big family and a cornfield in the backyard. like donald trump, my grandfather immigrated to this country, and in many ways i grew up with a front row seat to the american dream. i watched my mom and dad built everything that matters, a family, a business, and a good name. the heroes of my youth were john f. kennedy and martin luther king junior.

i actually started in politics in the other party. but when i came of age, i was inspired by the ideals and the eloquence of our 40th president, and i became a republican. the most important thing in my life is that 31 years ago, i married the girl of my dreams, karen pence, who will make a great second lady of the united states of america. [applause] and while this office is an extraordinary office to which to -- i aspire, the highest role i will ever play is d-a-d. i am a proud father of a college student, a graduate turned writer and a united states marine. [cheers and applause]

gov. pence: i ran for congress before the republican revolution led by newt gingrich in 1994. i was not successful. by the time i got to washington, d.c., sometimes it felt like i got elected after it was over. from almost my first day in congress, i found myself battling the big spenders in both political parties, whether opposing no child left behind, prescription entitlement, i -- and the wall street bailouts, i thought every single day for taxpayers and fiscal responsibility when i was a member of the congress of the united states. and after the republicans lost the congress in 2006, i was almost unanimously elected to serve in leadership, and we fought back against the nancy pelosi congress. we opposed obamacare, we opposed their tax increases, we opposed cap and trade, and i was part of the team that won congress acted

-- back from democrat control in 2010. [applause] gov. pence: and all that happened before i went back home again, to indiana. i want to say, i answered this call for two reasons. first, because i know from firsthand experience that strong republican leadership can bring about real change, just like we have seen in the hoosier state. and secondly, because hillary clinton must never become president of the united states of america. [applause] [applause]

gov. pence: i know what i am talking about. in indiana, we proved every day you can build a growing economy on balanced budgets, low taxes, even while making investments in roads and health care. we like to say indiana is a state that works, and it does. [applause] gov. pence: indiana works because republican principles work every time you put them into practice. today we have a $2 billion surplus and the highest credit rating in the nation. and since i became governor, hoosier businesses have created 150,000 net new jobs, and we have more hoosiers going to work than ever before in the 200 year history of indiana. that's what republican leadership gets you. [applause] gov. pence: and let me say from my heart, that is what the no-nonsense leadership of donald j trump will bring to washington, d.c. [applause] gov. pence: elections are about

choices, and i also joined this ticket because the choice could not be more clear, the stakes could not be higher. americans can choose a leader that will fight to make america safe and prosperous again and bring real change, or we can elect someone who literally personifies the failed establishment in washington, d.c. seven and a half years of barack obama and hillary clinton's policies have weakened america's place in the world and stifled our nation's economy. terrorist attacks at home and abroad, grim and heartbreaking scenes from france just a few short days ago. the attempted coup in turkey, all a test to a world spinning apart. history teaches us that weakness arouses evil. hillary clinton and barack

obama's foreign-policy of leading from behind, moving redlines, feigning resets with a resurgent russia, and the rise of isis is a testament to this truth of history, and we must bring a change to america's stand in the world. [applause] gov. pence: we cannot have four more years apologizing to our enemies and abandoning our friends. america needs to be strong for the world to be safe. on the world stage, donald trump will lead from strength. he will rebuild the arsenal of democracy, stand with our allies, and hunt down and destroy the enemies of our freedom. [applause] gov. pence: and at home, the choice is just as clear. where donald trump wants to cut taxes, hillary clinton plans to

raise taxes, on working families, small businesses, and family farms. donald trump is committed to repeal obama care lock, stock, and barrel. hillary clinton looks at obama care as a good start and wants to take bernie sanders' path to single-payer socialized medicine. where donald trump supports and all of the above strategy and will end the war on coal, hillary clinton promised an energy plan that would close on american coal mines and put coal miners out of work. where donald trump wants to build a wall and temporarily suspend immigration from countries compromised by terrorism, hillary clinton plans to ignore the supreme court, reimpose executive amnesty, and would increase our refugee program by more than 500%. and where donald trump will

appoint justices like the late antonin scalia who will uphold our constitution, hillary clinton will appoint supreme court justices who will legislate from the bench, abandon the sanctity of life, and rewrite our second amendment. to every american who shares our convictions, i say to you, join us. for the sake of our security, for the sake of our prosperity, for the sake of a supreme court that will never turn its back on our god-given liberties, let's come together. as a party and a people and a movement, to make america great again, and that day begins when donald trump becomes the 45th president of the united states of america. [cheers and applause] gov. pence: thank you for the

honor, thank you for your support, and god bless the united states of america. [cheers and applause] ♪

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announcer: before it mr. weeks republican national convention, we will explore the history and literary life of cleveland ohio. on the tv, we will talk as an author explores how transportation shaped the city's identity. then we will visit the cleveland public library and explore its collection relating to the life of the poet, novel is playwright, and social activist. that hes at central developed his love of writing.

he was introduced to the work of carl sandberg and walt whitman through his teacher. he also composed a column while there that is kind of famous. and on american history tv, we will visit the cleveland history center and take a tour with the chief curator, highlighting items relating to ohio presidential history and cleveland's last political conventions. then we will tour the crawford hearaviation museum, and why cleveland was nicknamed motor city before detroit. the key location of cleveland on lake erie, great shipping routes . we also have the railroad in the area, so there were a lot of railroad shipping routes they could be taken.

we also had the steel industry, which is very important in the automobile industry to have the skill you need, and there was a lot of lumber in the air, so it just came together. announcer: this weekend watch .ities -- c-span cities tour working with our cable affiliates and visiting cities across the country. in his weekly address, the president discusses efforts by law enforcement's work with community activists. this week's republican address comes from a group of house leaders, including speaker paul ryan, on their legislative agenda. first, we will hear from house republican conference chair cathy mcmorris rodgers. hi, everybody.

it has been a challenging couple of weeks. the shootings in minnesota and baton rouge. the protests. the targeting and murder of police officers in dallas. it has left all of us struggling to make sense of things at times. for many, it can feel like the deepest faultlines of our democracy have suddenly been exposed. the america that i know, the america that i saw this week, is not as divided as some insist. i saw it on monday when i met with law enforcement to talk about the challenges they face, and how too often we ask our police to do too much. to be social workers, teachers, guardians, and drug counselors as well. assad on tuesday when i travel to dallas for the memorial for the officers to died in a line of duty. even as they were protecting processors with whom they may have disagreed. i saw it wednesday when i hosted police chiefs, black lives matter activists, state and local leaders, and others for a discussion that lasted more than four hours. a discussion on more steps we can take to support keeping our -- to continue supporting our

police who keep streets safe and instill confidence that the law applies to everyone equally. and i saw it on thursday, at a town hall in d.c., how we talked about how there is no contradiction between honoring police and recognizing the racial disparities that exist within our criminal justice system, and trying to fix those discrepancies. pres. obama: these conversations were candid, challenging, even uncomfortable, but that is the point. we have to be able to talk about these things honestly and openly. not just in the comfort of our own circles, but with folks who look differently and think differently than we do. otherwise, we will never break this dangerous cycle. that is what america is all about. not just finding policies that work, but forging consensus, fighting cynicism, and finding the political will to keep changing this country for the better. that is what america gives us, all of us, the capacity to change. it won't happen overnight.

the issues we are grappling with go back decades, even centuries. but if we can open our hearts to try it and see ourselves in one another, if we can worry less about which side has been wronged and worry more about joining sides to do right, as equal parts of one american family, then i am confident that together, we will lead out country to a better day. thanks, everybody, and have a great weekend. rep. rodgers: today, people are anxious. we are all anxious. we are on edge. there is a better way to make america the best place to live, to work, to build things, to raise a family. rep. ryan: last fall, we can together and made the decision that it was time to go from being an opposition party to being a proposition party. we dedicated ourselves to looking at the problems facing our constituents in the country and coming up with principled solutions.

rep. mccarthy: for the last number of months, this conference has been coming together to find the legislation to put plan out. this is a better way. rep. ryan: these ideas work in a simple way. we take timeless principles, we apply them to the problems of the day, and we offer people solutions that help improve their lives. rep. jenkins: it is based on policies that are based on timeless principles that we can all agree on, stimulating growth, building a better tax code, and holding the irs in check. rep. scalise: plans to get the economy moving again, to rebuild the middle class. let's make america competitive again. but it needs to reach to the lowest realms of america. rep. ryan: we offer a better way for homeland security. we offer a better way to ask the military to do what we need. i think it is clear now that

-- to people in america that we don't like obamacare as house republicans, but they need to know what we are for, and our plan focuses on lowering health care costs and getting rid of the mandates that are killing jobs under obamacare. >> of more than anything, what people want right now is to be heard, and that is why it is so important and fundamental that we restore people's voice in their government, and uphold the constitution. let's reaffirm a government of the people, by the people, and for the people. rep. mccarthy: as we go back to our districts in the next month, we not only will talk about it, we will show a better way for all americans. rep. ryan: our job is to look at the problems facing this country and offer solutions. that is what we are doing. seven out of 10 americans do not think america is headed the right direction. we agree. but rather than simply complain,

rather than throw bombs, we are offering solutions. rep. jenkins: the american people deserve a better way, and that's exactly what this house republican conference is going to deliver. announcer: washington journal is in cleveland for the republican national convention. join us for washington journal live from cleveland beginning at 7:00 a.m. eastern sunday morning. a discussion on food and agricultural policy was held at the annual summer meeting in des moines, iowa. speakers included the agricultural secretary tom bill tom vilsack and edward

lee. this is one hour and 20 minutes. announcer: thank you lady and gentleman. we are ready to begin. we have a great agenda plan today, so we certainly welcome everybody and hope you enjoy the discussions we are going to have. welcome back to the governors. some are on their way here. here.come those who are there might have been some late-night partying out there last night.

,e appreciate the hosting here governor grants to -- brand stood, thank you. we are going to be joined by some distinguished guests. we are grateful to have them here. as we are going to be talking about agriculture, food, and the journey from field to plane, the title of our agenda here today, no better place to talk about that than right here in iowa. the good news is that we have two iowa governors with us, one former, and one current governor. they are both called terry branstad. [laughter] >> we also have one that is the former secretary of agriculture. >> i'm going to get to that. you're stepping on my lines, buddy.

we are honored to have secretary vilsack. with that, let me turn some time overdue you to get started on this program and you can lead the discussion for us. >> thank you very much. good morning to everyone. we have a very fantastic day plan today. we are fortunate to be joined by some distinguished guests throughout the day. morning,of us off this we will address an issue that is near and dear to my heart and the people of iowa. i will leave the country and agricultural and food production and is responsible for more than 7% of america's food supply. there is not a better place for governors to con, to convene and discuss agricultural issues than here in the heartland of america

and the state of iowa with two iowa governors, one former, one current, and there is also no better person to the that discussion than myself. i am honored and proud to do it. >> i will second it. [laughter] >> anyway, i am a proud farm kid, as is my lieutenant governor, and we have never gotten that far away from the farm, and we are proud to promote it. we say good morning and welcome session onnary growing food, growing economies, the journeying from field the plate. i certainly agree that there is no better place for this conversation than right here. both lieutenant governor tim reynolds a night travel to all 99 counties in the state of a highway every year, and we see firsthand how iowans have pride in growing great crops, and if you travel the state right now, it is really green out there, beautiful coin at -- corn and

soybean price. we also raises significant amount of livestock, and process these commodities, and where implementing new technologies all the time. farmers here at home and across the u.s. are vital to our economy and to every citizen. and i were, the hard work and dedication of our farmers help the state lead the nation in the production of corn, soybeans, eggs, pork, and biofuels. thee producers provide nation's food supply, but it does not stop there. we also lead the nation and the number of large food manufacturers, with 36 of the largest 100 food manufacturers calling iowa home. companies like quaker oats, the world's largest cereal mill, and the largest spice plant in north andica, both based here iowa. food processing also provides

21% of iowa's gross domestic product. iowans also choose to purchase local -- locally and support farmers markets. the des moines's former market it isng on right now, and one of the best farmers markets in the entire united states, so if you can get away and visit the farmers market this morning, i think you will be impressed with the quantity and quality of food and with the friendly people that are there marketing their products. our state is the first in the nation in the number of farmers markets per capita. simply put, iowans know how to produce, process, and purchase great foods. our first commodities and foods are processed foods, goods, and biofuels help provide nutrition and feels globally. with the growing world population, iowa and all of our states will continue to play a

crucial role in feeding this growing world population. to the future, the world population is expected to reach 9 billion people by the year 2050, and we must continue to pursue advancements to help alleviate hunger. world a chance to see the food prize hall of lloyd's last night and what we do to honor and recognize people who are working so hard to reduce hunger and feed the world. have used research, development, innovation, and a lot of hard work to build new industries and new technologies in the food area. we also know that agricultural goes beyond the fields, and advancements are found in research and development. the challenge of feeding millions of people is one that farmers have and continue to be proud to phase.

they are expected to grow more food on the same amount of farmland. history has shown that farmers have risen to the occasion and dramatically increase production. in 1960, 1 former produced enough to feed 26 people. that same farmer today produces -- enoughd and food food to feed 155 people. through this demand, our nation's governors have realized the importance of agriculture. it not only helps our economies, but also creates quality jobs and feeds each of us and the people that live in the communities of our state. this session will feature a discussion on how farmers, chefs, and food entrepreneurs are spurring innovation and economic development. partner, lieutenant governor kim reynolds, would discuss how

schools are pardoning -- partnering with business to develop a sustainable plan for farmers, restaurants, and the food industry. have truly see, i met my match in terms of energy, thom tillis tech, former governor of iowa, will also share the evolution of agriculture and food is benefiting states across the country. , a restaurantlee owner will discuss the relationship between chef and the impact of restaurants on the local economy. later, we will meet students who were there in about agriculture .nnovation in high school we will also have members of the culinary arts apprenticeship program and culinary arts community college programs from

iowa that are going to be serving the governor some of iowa's quality locally produced food. we have reserved time during the session for you to visit with the students so please be sure to go over in the about their work and try some of the delicious food that they are producing. right now the students are to the right of the stage, they are working hard with pork braised with beer served with currently granola, pork wontons and spicy pepper sauce and marinated tuna or twocucumber salad over audience into governors that are here, please excuse the sound of food sizzling or the smell of bacon. and this is a state that loves bacon. if you need any assistance

during the session, please see stephen parker, the director of education and workforce who is seated here at the table. with that said, it is my privilege to introduce edward , an accomplished chef, a proud ambassador of southern culture, and our honored guest from louisville. his culinary style draws inspiration from his asian heritage, his new york training, and his embrace of the american south coupled with the best ingredients from local farms in louisville. he operates fine dining 600 10 magnolia and no code which features small array of bourbon cocktails. the very appropriate for louisville. he opened his first restaurant outside kentucky last year at

national harbor in maryland. please welcome chef edward lee. [applause] lee: thank you for having me. i'm excited to be presenting in front of such an esteemed crowd. usually the people i speak in front of our pretty much drunk on wine, so this is a different experience. i have two restaurants in louisville, one in maryland. restaurantng another in washington dc next year. i will give you a history about me as i go through this. i am the son of korean immigrants. my parents ended in brooklyn in 1971. we grew up in a humble household which meant that we never ate out.

food wasne dining beenhing that has always romantic for me. i knew by the time i was 10 that i wanted to be a shift even though i did not know what it meant, i knew that for me it was going to be my role in life. later, i graduated from nyu with a degree in english literature and the first thing i did was get a job picking potatoes at a french restaurant for $6.25 an hour. needless to say, my parents were really proud. oforked my way up to the top new york city kitchens and i opened a small restaurant in downtown manhattan. it was about this time that the idea of a very unique american

food movement was happening, starting with people like alice waters, odessa piper from for young chefs, we believed in the idea of american cuisine, celebrating american food and a lot of that and utilizingorms forms together over ingredients and it was a very integral part as a chef soon when i opened my restaurant i started to say, this is what i want to do with my career. it isin new york i difficult to do that. as i kept working, i kept getting frustrated with the axis two forms. access to farms. very few chefs leave new york to go to the country and that is

exactly what i did. 2000, i left new york city for louisville. jv and probably drink too much bourbon and saw all of these wonderful farms and pretty ladies in hats and i thought this was a cool place. ast i did not realize was southern food was going to become a huge part of my identity. the other thing i did not know about was that kentucky was going through a transformation and in 2000, the settlement agreement passed. states were getting funding for the tobacco settlement. kentucky was one of the states to allocate some of the funding small family farms and there is an organization called the community from the lines that spearheaded this movement.

i got to kentucky in 2003. farms thatf these were growing tobacco that were now growing produce, everything .rom quail, walnuts, chickens for a chef like me who was the solution with city life, i had hit a jackpot. of what the beginning from the was an incredible journey and i realized that i cannot do my job without small family farms. as a chef, i do not create, i curate. the only thing i can do is to use the ingredients that i get from my farms. if i get great ingredients, i .an make great food and so, at that point, we dedicated ourselves to becoming a restaurant that would be formed-driven. what that means is different for

each restaurant. most open with a concept and then you find purveyors to meet your needs. we did the opposite. we said let's go to the farmers first and see what they have to sell. that product, take it to our kitchen, create food, and then write a menu. although that may seem like a simple shift, it changed the way to we look at food systems. what it forced us to do was, it made us realize that we were a part of a system rather than outside of it. sudden we became into and with the rhythms of nature, farming, harvesting. it has really defined our cuisine. responsibles mainly for some of the success that i had and the press.

it was at that time, there was an organization called the .outhern food ways alliance i was getting into southern food and spreading my wings. when i joined, the organization aligned me with other chefs throughout the south that were thinking along similar lines. all of a sudden, i had access -- i was going to conferences and meeting chefs from texas and georgia and the carolinas and it became a movement. in a large part, organizations like this are responsible for the popularity of southern food and we have seen southern food become a global phenomenon. this idea of comfort food, of being into it nature, respecting thisraditions of the land, is my friend travis milton who

is starting a new movement appa the appellation -- lachian food summit. these movies are driven by chefs and activists. part of what i want to say today is that we cannot underestimate the influence and the power that these organizations have because they create and influence that goes beyond our imagination and i have seen it happen over the past 13 years. i think we have so much more to go on that. one of the things that struck me was, i have been in the lethal for 12 years and 10 years ago i would ask people, if they were from out of town. they would say, milwaukee or

wherever. i would always ask what brought them to louisville and they would say work or family, etc. i remember about six years ago there was a couple from chicago and i asked them, and their answer was, you. it was the first time i had the idea thated this couple had gotten in a car, spent money on a hotel just do it in my restaurant was something that just fascinated me. callnk it is what we now food tourism which was just as starting back then. today, i could walk to my restaurant on any weekend and i can check off the cities of the people who were there traveling. news an incredible

phenomenon that we are seeing that is happening everywhere. eat andre traveling to people are not coming to for sure,s just people are understanding that it is an experience and understanding that restaurants are not just about chefs treating food but that we are a social network, that we are a voice for change, that we are an experience, that we create memories, and these are the things that, for me, have made it possible to keep growing, keep understanding what the public wants it for me as a restauranteur and chef. as a restaurant industry, we are at least a $700 billion industry. we are growing at an incredibly rapid rate.

with that, we have seen incredible things. andn industry, chefs television personalities and activists and leaders and everyone together, we have seen things that the rise of the farmers market boom, the rise of , the call for food transparency, labeling, that are slaughtering practices, all of these things that have happened within one generation i am hopeful that we can see more happening in the next generation. two things that concern me the is, i worry the most about small american farms. be, and this is what spurred me on at the beginning of my journey and the thing that the peake the most in

of my success, the average age of the u.s. worker's 39, the average age of a farm operator is 55. there are not young people going into farming and we have to ask why. we need young people to enter .nto the farming industry we need for me to be economically viable for young people to do and to supply restaurants like me with the stuff that i need. what happens at my restaurant filters into society. , youu look at this chart basically have a very small triangle that represents sort of the family farm and on the other side that large part of the triangle which represents commodity agriculture and you need both, obviously. you cannot feed the world on

small family farms but to me this chart represents something that is out of balance and me to figure out a way to raise up family farms. we need to make farming attractive, we need to make an to make young people understand that they can do this as if i have a job, we need food transparency. the biggest thing we need right now is food democracy, understanding that food is a vehicle for democracy, social justice, and there are many companies -- there is a company that has done an incredible job connecting family farms to urban to find moreeed chefs, people in our communities who have great ideas, bring them to a table and consider their ideas because it is it is the way we are going to figure out

solving problems for the next generation. the last thing i want to talk about is what we have done in my restaurant, and i am very focused on job development. we are a $700 billion industry and i want our industry to keep growing. in order to do that, we need staff, people. consider is -- the biggest thing right now is a labor shortage in ie restaurant industry would have seen traveling is that in every city that i go to there is usually an urban poor neighborhood and those neighborhoods had anywhere from -- i have seen anything from 15%-30 5%m -- unemployment so i am looking at an industry that is needing labor and i look at an urban community that needs jobs and over thing is to try to connect them so we started a program where we are trying to get young adults right out of high school,

kids who cannot afford college are not going to go to college and are going to join the work force and we try to bring them into our system and teach them how to be productive members of society by teaching them the restaurant industry and having them respect and honor what we do. we do that, if we continue to do that, we will be able to see more restaurants who will, hopefully, purchase more farming products, more farmers, you know, create more farms and more of this. he ended of the day for me, i do not see the necessity for more food, i see the necessity for better food and so will we are trying to do is create a culture where we understand the necessity of, whether it is food waste -- all of these issues that are heading home in the food industry right now, we want

to see better things happen, not necessarily just more, so, that is part of what we are doing to the program that we have right now -- it is in its infancy. we saw four students go from being unemployable and nobody would give him a job to 1.5 years later, they are all in myed people who work restaurants and seven in phase and so the next phase of that is actually opening another restaurant in louisville to run it as a tutoring mentorship program so that they can sort of work under my tutelage and become productive members of , thaty to go outwards, so is one of the things i wanted to say -- i want to thank you very much for having me and i hope we can see the next generation of chefs and restauranteurs and farmers take this to an even bigger level. >> thank you very much, chef

lee. [applause] he is very much a visionary entrepreneur who also has a great social conscious and is making a difference in this world, so, thank you very much for sharing your story, your experience with us and your vision for where you want to go. now, it is my pleasure to introduce our next speaker's, two people i know very well, kim as ours --rves serves as our 45th lieutenant governor in iowa, elected in 2010, reelected in 2014, lieutenant governor reynolds works tirelessly to promote s.t.e.m. and she is making a real difference, their efforts have gone from nowhere to being a leader in the country and she

is especially focused on underrepresented and underserved students . she cochairs the governors.t.em. advisory council from the beginning when it was started in 2011. she has also chairing the development and implementation of our statewide energy plan which will continue i was leadership in the renewable energy front and position iowa for continued economic development success. economic development and promoting i was trade are key issues for the lieutenant governor since 2011, she has helped to attract more than $12 billion in private investments to the state, she has also led a trade missions to europe, south america, southeast asia to promote iowa exports and encourage investments in our state and this fall, she will lead a trade mission to you are going and argentina. on a national front, she presently serves as the chair of

the national lieutenant governors association, she is a native of st. charles where she grew up on a farm and she is proud of her small-town roots. she and her husband are the parents of three dollars and eight grandchildren. eightee daughters and grandchildren. this bigger who follows is no stranger to iowa and culture. is our nation's 30th secretary of agriculture with the role of how they connect farmers and consumers with the essential supply chain, he also is chair of the president obama's white house rural council and is engaged let'sichelle obama in the move initiative. prior to his appointment, he served two terms as governor of iowa, served in the iowa senate, and as mayor. he and his wife have two sons

and four grandchildren. a warmjoin me in giving welcome to our next to speakers, kim reynolds and secretary vilseck.e sack -- tom >> thank you. i was telling somebody, you certainly know you are in the midwest when you walk into a conference room and it smells like bacon, so, we own that. i had the honor of having secretary gay-lussac serve as my -- the- secretary agriculture secretary served with me. we have known each other for quite some time. it is impossible to underestimate the importance of agriculture in states across our nation including iowa and chef lee highlighted the impact

that restaurants and culinary artists play in communities across the nation and i loved your comments and your story in your journey and especially that thegreat food comes from farm and that you cannot do your job without small farms and it really is a food tourism that we are trying to build across the nation so certainly appreciate that as the governor indicated right on the street at the farmers market is a great example of just in the farmers market that has grown from the inception not that long ago, so what i thought i would do this morning is built on the governor's comments on how agriculture, food production, and the biosciences shape the focusconomy and how the on education and training needed to grow that human capital pipeline to ensure that we have the talent to do what we need to do to feed a growing world population and really solve the

significant public policy challenges that each of our state's case. it is vital that our students as well as our teachers are trained to meet the demands of a fast seeging world and as we technology continue to improve and our population grow, we must focus on education and training that will give us the tools that problemso solve the and challenges that we face. all of you know that high-quality science technology engineering and math education or stem is really a vital part of solving those challenges. stan is critical to meeting the moral imperative of feeding a growing population that is projected to be 9 billion by 2050 and a major component of utilizing resources like fertilizer and chemicals. stan s will is --tem was --

stem well advanced farming. we are seeing young people moving back to the farms across the state. hybrids to develop feed and especially help us address a very important issue and that is water quality. really proud to say that i am a is a national leader when it comes to stem education that is because of the vision and commitment of governor branstad and 47 members of the advisory council for stem. it is a tremendous bipartisan effort, i cannot think the legislator an effort their support, they have actually appropriated significant funding ever you do a lousy but we have been into two by getting programs in the state -- we have -- we broke the state into 7 -- six regions and we have dynamic regional managers that are have been champions as well as advisory boards in each one of those regions, the educators have embraced the opportunity to

participate and utilize the high quality programs that we have peered businesses and nonprofit leaders have been instrumental from the very beginning, they said on the executive board and they are on the advisory boards in the regions across the state. it really has brought business and industry and academia together -- will be found as they are operating in silos and we want business and industry sharing with us what their expectations and what they need their workforce to look like and then we have a dynamic executive director that lives and breathes and he doesn't 24/7 and he has just been an advocate for the s program. today the governor council oversees excitingtem initiatives that we are seeing the difference and you have her be reference at a couple times -- probably the single biggest focus that we have is the high education programs, programs that have do apply to

an rfp process to be selected -- we have at anywhere from 9-14 different programs and an afterschool programs, teachers, educators across the state can apply to utilize the programs and really the goal of this and was inuncil is continues to be to increase the student interest and achievement in stem to nature than a matter where they live in the state to have access to these great programs all the while tying it to economic development. we have great programs happening but it was really in pockets and i wanted a sure that the kids in southwest iowa same opportunities that the kids in some of the larger school districts had and so it has been really fun to see it grow and the enthusiasm and just excitement to participate -- there is a lot of organic growth that has happened with the exposure and we started with 40,000 kids having the opportunity to participate in the program and last year were actually able to reach that [indiscernible]

that were able to account for through thestem advisory council 100,000 students and we are seeing great growth and i am really proud of that we are not going to stop, we're going to keep expanding across the state but those stem education programs, they range from preschool, hands-on, science to engineering applications for kindergarten through 12th grade, meanwhile, we can to to deliver new initiatives in the way that we can keep it fresh and so we just s implementable we refer to as the counciltem best program and that stands for business engaging students and teachers and that really is creating new school to business partnerships that as we talked about industry playing a very important role in this it really is engaging students in real world learning experiences in s.t.e.m. two years ago i also had the opportunity at a national level to join dupont president paul

sheckler in promoting s.t.e.m. it was anntry and opportunity again to talk about all of the opportunities that are available in agriculture food processing, biosciences, to talk about how we engage the youth said that they understand the opportunities that are thatable and how critical is to us meeting our obligation of feeding the glowing population and then how do we communicate that better? had we grab that mcgibbon etc. about being in that -- to being a part of that industry? so,ave seen results, too, you know, it is all about accountability and measuring to ensure that we are doing the right things and we have seen that the s.t.e.m. initiative and is high-quality s.t.e.m. programs are provided results, students that have participated in the programs, we have seen their scores increase six percentage points in both math and science and kind of an

unexpected increase that we do not expect was we had seen five percentage point increase in reading. and we have measured that through standard testing. providing more equitable access to great stand education opportunities -- great s.t.e.m. opportunities. i am pleased to report that they share of minority students participating mirrors the share of minority students that are involved in their total enrollment and that has always been one of the number one priority is also is increasing the underrepresented and underserved through the s.t.e.m. initiative and we are working to make that happen. i talked about 100 thousand students at the opportunity to participate but another metric that we have worked hard to fill everyp in were in almost

single school district in the states and we have some exposure in every single school district and now we are working on ways that we can scale that so that children have an opportunity in preschool, kindergarten, first, third, so it is not a hidden this good s.t.e.m. nationwide state leaders are really moving s.t.e.m. education to the forefront and just last month for example arkansas governor hutchinson announced a learning initiative -- this is another great event -- to increase access and interest in computer science and s.t.e.m. careers he was highlighted yesterday for the great work that he is done as well as governor maccallum was also to talk about what you are working on in your state also. but really with a focus on aligning the states education and career training systems with workforce needs, another good example is governor and 70 s.t.e.m., he has established a s.t.e.m. s.t.e.m.

education innovation s.t.e.m. alliance so, great things happening in washington, s.t.e.m. too, population s.t.e.m. growth s.t.e.m. and rising incomes and developing nations s.t.e.m. -- pressure really productive agriculture land and heightened demand for the quality and quantity of food and the agriculture and bioscience industry requires the best problem solvers that can help us address both issues. and that is why governor brinson i are especially proud that iowa was at. stem councils another broken hopefully you will get a chance to win is that. but it is the curriculum for agriculture of science education or we prefer to it as [inaudible] an inquiry-based hands-on problem-solving approach to helping students understand really how agriculture can change the world in the vital world that they can play and doing that. ,he program supports teachers so, professional development is a big part of that and that is , pimof the program

mentoring, as well as other external support systems. it is also a great example of a public-private partnership providing education that directly aligns the needs of agribusiness and industry and really it is a public-private partnership so we have been able to support with support from the s.t.e.m. as well as the private sector with companies like john bureau,upont, iowa farm we have 30 four case certified teachers have taught almost 2000 iowa students just last school year so we are working really again to build that across the state you know sfa and the kids are right over here and iowa have added almost 3000 members over the past three years and josh, the executive director, which played that he believes that this curriculum has played a role in seeing the growth in

sfa -- i think they have added ok.osh -- 50 new chapters? and we have nearly 15 thousand students are participating in ssa so it is a great great program and we love seeing the growth in that. so with us today for the exhibition portion of the session, the students are going to feel to demonstrate some of the activities in the program with the introduction to food and natural resources. the entry-level course includes identifying top commodities in the u.s. and their cost to consumers, determining soil texture and content through a sediment test, and examining the spread of nutrients through point and nonpoint sources. offers nine courses nationally with the progression of complexity including high-level research and a lot of the kids will tell you that it is more rigorous and the other classes they are taking in school so the rigor component of

it is just exceptional also. you know, it has been exciting to see the momentum and a energy and i indicated just from the by.e.m. advisory council just marketing programs that are taking place across iowa and i -- you all know this but with.m. provide students the knowledge and confidence of problem-solving skills that they need in the communication skills that they need also to -- it provides educators with a professional development including opportunities to work with business partners so that what they are teaching the students is appropriate and meet their real-world needs, we also have the opportunity for teachers to do externships with business and industry and that has been phenomenally successful helping us meet the need for the employers so we are providing the talent pipeline that they are needing to grow. s.t.e.m. is not just science technology engineering and math, it is a way of life, of learning, and it is a registered

future, so, please visit with this it is an imprint is is in the culinary arts program and see all the great things that they are doing, so, i know they are going to look for to meeting with you when showing -- showcase what they have been working on, so, with that, thank you for the opportunity for us to talk about the s.t.e.m. activities that are taking place in iowa it is a great honor from it occurred over to our forum or governor, secretary tom vilsack. [applause] >> thank you very much. it is great to be home. both in terms of iowa and in terms of the national governors association and it is good to see a lot of old friends and a lot of new friends in the governors association and i want to thank governor branstad for the gracious reception last night, it was great to get back to the old homestead and take a look at it and they have done a great job with the pool.

appreciate the work television a governor is doing in terms of the young people -- i am glad she a knowledge to our students here today, just incredible bright, young, articulate, young people who care deeply about agriculture and rural areas and urban centers as well -- a lot of times you do not think of it in that of the moral approach many of the over 600,000 members are located in cities and it is in part because we are seeing the expansion of agriculture opportunity all over the country. i want to give you some practical advice today. and i feel little bit intimidated you that in the context of several of the governors who are here, we talked about entrepreneurship, you guys -- [indiscernible] in american business who were sitting at this table at least two of them -- maybe 3 -- [indiscernible]

there is a tremendous opportunity here in agriculture and local and regional food production. i hope i will be on to make the case that all of the governors here today should be investing in this is part of their strategy to rebuild a world economy. when you think about the role economy historically it has been an extraction economy, we extract things from the land, we process than in another place and we sold him here there and everywhere but we are changing americamic in rural from an extraction economy to a sustainable one. and i think it is important because i think it offers hope for young people who want to families ind raise this community. one simple statistic which i think is incredibly important to know -- and that is that rural america represents 60% of the

population the new the 40% of the military comes from those towns so it is an incredibly important that we preserve opportunity in this community's because there is a value system that is important to this country so? first of all, we always support his production agriculture -- the governor and lieutenant governor have made a point about the importance of production agriculture and specifically the ability to export to other countries. appreciate the work of the governors yesterday in talking about trade and trade agreements -- today, i want to announce a new opportunity for all of you to think about -- i know that some of you have already been to cuba -- this is an opportunity -- i have been there twice in the last couple of months -- we are now announced today that we are going to have a physical presence -- we are to have a usda official in cuba working with the state department, it is incredibly important in terms of opening up opportunities and trade and agriculture -- there is an over $1.8 billion market opportunity in cuba -- we used to control that market. now today with his opportunity

to the eu and some of our latin american competitors are there is no reason why if we get the embargo lifted and get people to other that we cannot do extended trade opportunities in cuba. so we have on production and agriculture, trade as well but we have got to complement that, we covenant that with and new ecosystem markets. there are opportunities to invest in competition for regulated industries to meet the regulator needs and we are now seeing hundreds of millions of dollars being developed in what are called ecosystem markets at the top within a governor who was interested in that opportunity to buy a this economy summit we understand definitely here in iowa whether it is that a few production or energy production but we are now extending that far beyond fuel and energy to biochemicals and biomaterials. it is now a $364 billion industry in america, it employs 4 million people and we are just getting started transitioning

from a predominantly-fossil fuel-based economy to one that is balanced as well with a plant -based economy, tremendous opportunities. but the local and regional food system, just one statistic. the lieutenant governor mentioned schools. we have done recently that $20 to 200 95 grants schools across the united states and we have asked them to work with us to figure out a union what is being grown and raise around your school district? are you purchasing it from local farmers? are you giving the opportunity for small and medium-sized operators not to compete in a commodity-based market when it is all about technology and efficiency? create the opportunity to the lieutenant governor was talking about a terms of smaller operators. we want is people as the chef indicates we want us from assisting in business. if you're able to negotiate for a local school you can set the price, he didn't have to worry about the chicago board of trade, you can negotiate.

today, over 700 $90 million has been purchased by local schools of locally produced products within 100 -- 150 miles. it is a $3 billion opportunity so every governor should be thinking about working with her department of education and working with you cannot development teams to figure that how you can get your schools and your states to think about what is being grown and raise around our area, how can we help our local producers, what can we do to help them sell to us enough quantity and quality to be up to feed our children something that is locally and regionally raised keeping the resources in the school district, keeping it in the local economy? tremendous opportunity. that is just one of many opportunities to restaurants. today, we're at $12 billion.

there are chefs who want that product. we have seen an increase in farmers markets because we are investing. invested $16 million. we have seen that increase. here is what you need to know. markets can take electronic benefit cards for doublemilies, providing book opportunities. if you buy $10 their fruits and buytables, we will let you another $10 on us, so it is a tremendous opportunity. farm to school are funded and

provided products. is an aggregation center where food can be packaged. theave seen a doubling of number in the country today. this is a $4 million business. the governor has been to a lot of small towns. you cannot not be in a lot of small towns in this state. employing 20 people in a small town is a big deal and these jobs provide opportunity for the regional producer. we are helping the smaller farmers get credit. we are developing a new micro loan program. you do not need the experience you might have had to have to get a larger loan. it getserest rate and

people started. we are extending the growing season. in iowa we actually have winter. i knew you celebrate winter in colorado and that is fine. we didn't have any mountains to have a skiing industry. the ability to create a temporary greenhouse and have invested over 15,000 analysis extending the growing season. we have a food promotion program . we have invested resources and local food promotion and we had been about 350 projects and a zero opportunities for your cultural secretaries to apply for, to be engaged in. we have a tech risk management tools. if you are a crop producer, you are not a court and being

producer in iowa. mother nature comes in doesn't provide you this summer -- you get wiped out, whatever, you can get insurance. until recently he did not have that opportunity. we have all policy available for small producers. an a studentg for mary number of ways of providing help. we have a program funneled through your secretary of sixculture's almost thousand projects have been founded, as well. we are a loading program. there are a multitude of benefits associated that you might not have thought about as you are looking at developing a more sustainable economy in seeingreas and we are the rapid expansion in a significant interest in this area. going to finish by

saying we are also not just limiting an opportunity to local and regional, we are looking for ways in the organic space to expand that value proposition as well and so we have entered into a series of agreements across the world with countries like canada, wehe eu and are now negotiating with mexico's that we can sell organically produced items which is a growing market opportunity. all over the world and expand .he brand agriculture is one of the great selling points of the united states. as i travel around the world, what i note is that of american agriculture and a think of quality, affordability, food safety. these are incredibly important opportunities that we have whether it is local or international. to any question that you all have that i would strongly encourage all of you to with thetter familiar

usda programs. i have often said that if i knew when i was given no not at the ends his department of agriculture and might have been a pretty decent governor -- i don't know -- but i will say i would have been a better governor and i am trying to mentor my forum her governor, my current governor about those programs as well as a note that several of you and taken advantage -- i think i have -- i think -- will tell me that i have been to -- and i on [indiscernible] of great opportunities and look forward to visiting with all of you. puerto rico is another tremendous opportunity to reclaim the economy down there and we are working very hard. [applause] >> thinking. -- thank you. i want to thank the secretary and lieutenant governor for sharing with us the exciting work that they are doing and now

we are going to open it for questions. i want to ask the first question chef lee. what you has been able to do as a the entrepreneur, and i guess i would like you to share with has governor's deal in terms of policies that can encourage and support this interaction between the small producer and the restaurants and also, workforce development is one of the things we are dealing with, to, this whole thing about finding people in the inner-city that otherwise would have been unemployable that now can get into -- get a start in the world if he wouldugh so share your thoughts with how we as governors can facilitate and encourage what people like you are doing. >> that is great to hear. i think the most pressing for us

small family farms texas to different retail outlets, schools, farmers markets, prisons -- i don't know -- wherever they can sell their food. i know a lot of farmers in kentucky in one of the things that i hear from them a lot is we are farmers and we want to continue to be farmers, we are not salespeople, we are not marketers so when we have to spend half a day at a farmers market selling our product that is affidavit we are not producing product, so, there are many -- there are small little csa programs, a lot of different people working to help -- you know, farmers are not marketers, they are not business people, they farm and the more that we can allow them to concentrate on what they do best and as

legislators if you can create programs or create connectors to yourest of society, and as talked about, you know, farmers who live in rural communities to not necessarily understand or know the urban areas where we are generally consuming -- they are not experts in what urban communities need or want necessarily, so there has to be thoseay to bridge together and that comes from, there is many many people -- >> go-ahead -- >> one, you were in the state that has the first state food policy council which we established when i was governor to look at these issues with the sheriff's absolutely right, there is a need for a link. we have a program which is now operating in 10 areas around the country and it is essentially designed to figure out how to link to producers with those who want to consume, to purchase, to

the supply chain and every part of the country. we are working with the foundations we have received almost little over $2 million to fund this program for the next couple of years and so you may want to go on our website and take a look at food link to determine with the coordinator is your state are in your region . the second thing i would say is on our website we have a farmers , itet sort of a directory identifies where everything a farmers market is that we are aware of that usda the 8500 and you can find out with a figure out ways in which you can use your web presence to basically promote the directory. >> the one last thing is trust in of the things that has been we havehe generation is built up an incredible amount of trust between farmers and not every restaurant the chefs like myself and the community so when

the consumer comes up to my shot innt, right after the evidence or the receipts, they trust me to do the right thing came with the restaurant industry being so popular, there is a lot of, you know, like any business, people traded to give and each of the booming business and so one of the things it is very important for me as a ship going forward is looking at things like food labeling, looking at things like food sourcing and transparency of food systems that we can did it originate interest of the consumer, the worst-case scenario is in this booming economy, you lose the trust of the consumer and an 11th trust the restaurant, the farmer, you know muggeridge was what is coming out of these farms and whatever we can do to retain addresses going to be key. >> very good. off, this was an informative panel and i want to thank you for coming here to present. , want to ask you specifically

an opiateyou on conference, i want to congratulate you for the work you are doing on that, i also want to thank you in virginia for the work with the first lady because -- [indiscernible] virginiaon children in at access to a breakfast so it is truly ordinary what you have been able to do so i want to thank you for that in working with the usda, virginia has become the number one exporter to cuba so, what i am now -- to get cuban cigars and rum, excuse my question is with all of these programs we have going, with the new federal budgets coming up in the discussions about where do we go, where do you see agriculture funding going forward in these programs and we are relying on can we continued him in the new current

climate and other possibly new programs that we could avail ourselves of? programs areese all programs within the farm bill so essentially funding has been provided through 2018. we are operating at ust had an operating budget that is less then when i begin secretary and that is an unfortunate circumstance and one of the said i am awfulness of the governors will be engaged in the survey -- better support department of agriculture in terms of its operations. over 7.5 yearsgh operating with less money but the program money is still there and we are finding creative ways to leverage resources. , we have invested nearly $1 billion to local food system in about 40,000 investments and you can find all of this information in your

state with these investments have taken place on our website. find my these programs are working to get success stories to encourage others to operate. there is also a terrific opportunity for new farmers who want to get into this, we have a new urban farming toolkit and the new farmer to locate that will lend people abilities to figure out what programs to access so the good news is, these resources are going to be available. here is the challenge. they begin to discuss the next bill is essential to not start a conversation the same way we began this conversation which was we have to save $23.2 billion. it started with a we have to save money. is thatlem with that you then cannot address all of

the needs out there in rural america. and you really have to save and .e very creative it seems to me that the best way to start a conversation is to say, what is the need? how much is it going to cost? if you start with, we have got to save money, what that does is producer against local producers against business loan programs that the department of economic department would love to have, ok? against our ability to maintain our forests. it pays those interests against theanother in weakening better job supporting him and i will tell you that i'm proud that we have seen a reduction of poverty in rural america five ofrs in the last couple years and we have seen unemployment come down and things are beginning to turn

around but we have got to continue it, we have to continue to make these investments. mike governor herbert? simpson the panel, my -- thank you for this discussion, my question for secretary s.t.e.m. -- secretary tom vilsack is this. i know many farmers people involved in agriculture or concerned about the imports that are coming from foreign countries and competing with american grown food styles and agricultural products that is hurting their economy, they have complaints and concerns about the importing of products from other countries, nafta, the ,rade agreements that we have so, give me your perspective, with international trade being what it is, what is the future for agriculture when we are importing more products from other countries? >> the good news in trade is after the last 50 years governor, we have had a surplus

in agriculture which means that we sell a lot more to the rest of the world that we purchase from the rest of the world and i think that is going to continue. the efficiency of american agriculture just put a finer point on that, the year i was born to today, we have seen a what is the present increase in food production in this country on 26% less bandwidth 22 million fewer farmers. you want to talk about efficiency? it is a tremendous story of course it is but stress and strain on a roll commodity -- community because we did nothing we are good with a twinge of the people that were from and after the farm well that is known we were talking about here, we are creating argent certificate citizens affirming. i am not challenge by imports in the sense that we have a trade surplus, we have the best in the world -- we have the safest couldn't alone, windowless affordable food and we have a supply chain that is very consistent and is very stable.

i will tell you there is an emerging market opportunity for --in asia and that is what having this conversation audrey -- here is this it is it that you need to know a you need to tell folks not to be overly concerned about imports, today, to fiveowned to 525 hundred 30 million middle-class consumers, the people that want to buy american products and would love to buy them. next 15 years, that number is going to go to 3.2 billion. that is 10 times the population of the united states of america. why wouldn't we want to do business with those people? why would wewant the opportunity to sell this incredible product that we have? because we are going to continue to grow more of it and continue to have opportunities. runningre doing now is the opportunity, whether you want to be big, small, median size. trade, ifgoing to you're going to say to the rest of the world we have to have a

science-based system, we have to have a rules-based system recap making political system -- and everybodyons is playing on a level playing field, you have to play by those rules. can makens, if someone the case to bring something and come at provide choice for our consumers, to provide competition, to provide less cost to our print -- our away -- the array we have in this country is in part due to the trade we have with the rest of the world. i can't help but say this -- it's not really germane to your question -- but it's important. every single one of us that is a farmermer is not because we have delegated the responsibility of feeding our family to a relatively small number of americans. and it is such a small jet -- they do such a good job of it, we don't think twice about refer our provide family. it results in having us go into

a grocery store with amazing choice. we walk out of the grocery store and spend roughly 10% of our paycheck on food. to 20% to 25% of developed nations and developing nations. which means we have greater for its ability with their income and by consumer goods. i understand the concerns. but in the agricultural space, we are a winner in trade. big-time. >> i always tease cemetery millsap, in 2008, he briefly ran .or president i was the only public mayor that endorsed him. [laughter] choice president obama's to put you at the head of agriculture was inspired. i think he does much for

agriculture in this country than anybody in my lifetime. i'm grateful. not just for the farmers of colorado, but everywhere. at some point, you guys work together. talked a lot about how you slaughter animals and the importance of that in terms of the quality of the meat. i thought, if you take a minute or two and comment on that. >> yes, i got into it about six or seven years ago and i actually -- as part of an education, i went to a food processor in kentucky and they let me work there on the weekends. wholerally just spent the day with them slaughtering pigs. and learned an incredible amount about that. it is the one thing -- i always say -- we have this catchphrase,

farm to table. it is a cute phrase, but we never say farm to slaughterhouse the table. but is is really how the process works and we turn a blind eye to it because it is an uncomfortable thought to think about. talkhen we started to about the death of an animal, it is important to the overall profit we are getting. i got really intended to what temple ran was doing. huge or as is for a bigger discussion. but we have to care about -- you know, you can spend a year raising a beautiful cow and ruin it in the last 15 minutes of the processing by improper slaughtering practices. , you know,hings that the general public was never aware of these things a generation ago. it was not on the top of people's minds. i think one of the things, what the popularity of the food

movement and who journalism and tv, you are seeing these issues and consumers are wanting transparent. they are wanting information. there are wanting from asian and access. -- they are wanting information and access. you do not get access to them because it is a very behind the doors business. this is one place where there is an opportunity to say, listen, let's open up area in let's show trends -- open up. let's show transparency. the businesses that have given is an incredible process. it is efficient, clean, humane. i thought i was went to see a horror show. it was the exact opposite. the more transparency we have in those things, the more we can gain trust with the consumer. at the end of the day, it's my brand. and the biggest thing i do is trust. and the consumers trust what i

do. we fulfill that promise. >> our guests, we are ready to wrap it up. i think it is fascinating. when you are mentioning going to the slaughter houses, we had an issue with lean finally textured .eef we had a governor in kansas, the .overnor of texas joined us we went to the bpi operation and we saw a really what a great operation it was in nebraska. how they were using -- and this was misrepresented, but how they were using a puff of ammonia to kill bacteria and have a very safe, relatively

low-cost, quality, lean beef product. and we spent a lot of time because a lot of misinformation got out through the internet on that, just to try to get the facts to people. one of the things we did was actually go and go through the processing plant and see it firsthand. your remarks about that are very important. i think the more -- the more open and transparent we can be a a dear friend used to have pork processing plant here. --was an immigrant from well, he was polish and spoke -- he was a personal friend of john paul ii, the pope. and he had the most diverse workforce here in his plant here in des moines, slaughtering thousand boers, not your

traditional market hogs. but what impressed me was he knew literally, on a first name basis, everybody that worked in that plant erin and really cared about them -- plant. and really kid about them. i think that is very important. i think we need to show that. of us whormers, those grew up on a farm, understand farmers really care about what they are doing and building the relationship between the farmers , the slaughterhouses, the farmers markets, and the chefs so that we can really show -- we are so blessed to live in safe,a where we have quality, reliable, and relatively low cost supply of food. and we want to be able to share that with the world as well as with the american consumers. ishink the next step here it's time to eat. right? [laughter]

inant you to join me witnessing the future of food by talking to the students and hearing about their recent innovative work. governors are encouraged to ask questions throughout the agriculture demonstrations we are going to witness. anchorage each governor to take a few minutes to win -- to visit with the students and the apprenticeship in the ship program and learn about their great work. we are so proud and so excited about it. eastern iowasited community college culinary chef program, just to see the enthusiasm of those young people in the great work they are doing. it is just excites me. we asked the members of the -- we want the governors to go first and then we want the audience to also join us and get an opportunity to meet the students and hear about what they are doing.

and also sample the great food that is being made. so with that -- >> let me interrupt usa, two, we will have a governors-only meeting starting in 10. so please take an opportunity to see the student presentation. mike leavitt will be speaking to us also. , former chief of staff of president clinton. a reminder to everyone, we will be back here at 1:00. be hearing from speaker of the -- former speaker of the house nancy pelosi. don't waste your time. harry in. [laughter] quite ok. great job. [applause] ♪

of the speakers at the governor summer meeting was house minority leader nancy pelosi. she discussed federal race relations. this is about 45 minutes. >> ok, ladies and gentlemen. i think we are ready to begin if you will take your seats. governors and staff people. we are honored to have you here, back for our last session, our last plenary session this afternoon. we have had a great day. yesterday was great.

the presentations were wonderful and that we will continue this afternoon. we are honored to have your here and back again. we thank governor branstad for his hospitality and the beautiful state of iowa. for the nga staff, helping to organize and coordinate this. for the governors, for your busy schedules to be here. thank you for taking time. yesterday we had the distinct privilege of having the option to hear from senator grassley, chairman of the judiciary committee and i was senior senator. today, we have another opportunity for another distinguished congressional leader, democratic leader nancy pelosi. we are honored to have her hair with this. for that formal introduction, i will turn it over to the vice chair, terry mcauliffe. >> thank you governor herbert and thank you for being with us this afternoon. i am honored to introduce our next guest. she has been a friend of mine

going back almost four decades. she is a mother, grandmother, and has been a great leader for our country for so many years and a real advocate for working families in our nation. for 29 years, she has represented the 12th district of california, let the democrats in the house for more than 12 years, serving as the house democratic whip, speaker, and now has house leader. the breath of her work is too expensive for me to go through, but let me give you a few highlights that she has been involved in the affects all of us as governors. the house passage of the american recovery and reinvestment act in 2009, literally saving millions of american jobs. she has led congress in passing child nutrition and food safety legislation in 2010. she has made energy security her flagship issue, raising the vehicle fuel efficiency standards and making a historic commitment to american homegrown biofuels. i know you understand that, governor branstad.

she also helped to pass a new g.i. education bill for veterans of the iraq and afghanistan wars and has increased services for veterans, caregivers as well as the veterans administration. she has been born into a strong family tradition of public service. on behalf of the governors, it is my honor to introduce nancy pelosi, the leader of the house democrats. [applause] nancy pelosi: good afternoon everyone. it is lovely to be here in the heartland of america. is this the end of the presidential art the beginning of the next presidential, i don't know.

what do you say? never stops. it is just a constant. i was coming here from omaha, beautiful, but sadly beautiful to see the signs of reverence, flags at half staff along the way, and coming by the iowa veterans cemetery, grateful for how fortunate we are to have those who would be so great just both globally and at home to make us the home of the brave and the land of the free, and so it is wonderful to be here, governor, thank you again and again for your hospitality and leadership. terry mcauliffe, thank you for your generous introduction. i will accept your words, they were compliments to me on behalf of all our colleagues in congress who have the courage to go for it on this legislation, and of course the great leadership of president barack obama. i congratulate you and governor sandoval for your new

leadership, stepping into the chairmanship for 45 minutes or is it just as long as i speak? as long as i speak. again governor herbert, thank you for your tremendous leadership. i remember when you came in with governor mcauliffe to my office and talked about how we could work together, federal and state bipartisan, nonpartisan cooperation, and i thank all of you and governor herbert for his leadership on legislation for education on fastback. there were two things you mentioned that our law, thank you for making all of that happen. to the staff, i also thank the staff for the hospitality extended to be here. we may not agree on everything, but i think we agree on one thing, the leadership and dynamism of america's governors are one of the greatest resources of america's democracy. you not agree?

[applause] that is an applause line. i feel very honored to be invited by the great governor terry mcauliffe to be here or to be introduced by a great governor. as he said, we go back a long way. he was like a teenager when we were all working, happy working for a long time in politics, but i am so proud of his leadership in the state of virginia, creating jobs, improving education, and in and so many ways making a big difference, and i know part of the strength he draws on is the experience and what he draws from so many of you, so thank you for being such a great leader, terry mcauliffe. again, we may not agree on every subject. we are united in a common purpose. that is a purpose in finding solutions, improving lives. we know that a strong federal-state partnership is essential to creating endurable solutions facing are nation

today could i know we have a time limit, some trying to stick to my notes. we are more successful when we draw on the best practices that flow from states, the great laboratories of our democracies. that is an applause line, too. [applause] >> as we discussed state-federal relationships and partnerships, i want to acknowledge some of the subjects. thank you, governor branstad for your focus on food and agriculture and biofuels, a for that ohio has taken the lead on. we gave the congressional gold medal, president george w. bush came and made the presentation, and that was one of the days when we recognize the greatness of this state to feeding the world. it was an honor for you to join us when we unveiled his statue a few years later at statuary

hall. we discussed our showed support for the renewable energy standard. there we go. and understanding the relationship between food, agricultural, and biofuels. i know that has been -- and i hope to be able to read to have the benefit of your thinking, grateful for another great governor from iowa, a leader on these issues, so i what has been very generous to our country and all these respects. i know you talked about opioids, and i just want to say this. i think all of you for your leadership on this subject, but just to put what happened in perspective. this is a good bill, bipartisan. it has good policy in it, but we really need the money right now. in fact, we have needed it for a

while. we did a budget agreement last year. in fact, when we do our appropriate for the following year, there are priorities that are established, a cap place there, but at that time we did not realize we would need $1.1 billion for opioids, $1.9 billion for zika, or hundreds of millions of dollars for flint. in the course of time, emergencies occur, and they are emergency spending. it has been over four months, well over four months, since the president asked for the zika money and a longtime since he asked for the opioid money. our disappointment almost to the point of not voting for the bill was that it is interesting policy, good, bipartisan, but it does not have the money, and it will take months to get the

money, and why should that be? then, when we get the money, it will be in a budget -- everything is in their about education, all the priorities that are necessities, investments that actually grow our country, great jobs, and reduce the deficit, so we have to compete for the money, and i just think that we should. hopefully we can always in so that at some point much sooner than the appropriations process we can have this emergency funding, even if we have to pay for it not as an emergency that we would appropriate it immediately and if we have to fight over where the money comes from, but not to kick the can down the road. so congress has refused to provide the robust emergency resources urgent needed. governors of both parties have been some of the most powerful voices for the need for congress

to act on these public crises. you know, governor, the need in puerto rico for the zika funding. it is long, long overdue. how could it be? your continued leadership and advocacy for meaningful funding to fight zika and opioids will make a critical difference when congress returns. funding is very, very long overdue, and i just don't know why. your agenda here, going onto some other subjects you have talked about, is an agenda of the future, and i salute you for that. much of the future will depend on our ability to take bold action today to ensure that our nation leads and innovation in this century. we must ensure that american workers, american products, american ideas remain number one in the global economy.

i want to tell you for a moment about the innovation agenda we have put together. we started 11 years ago, presented it 10 years ago. it is called innovation agenda. we went all over the country and a nonpartisan way, academics, entrepreneurs, venture capitalists, union members, students, every aspect of an economy, society, give us your parties and how to keep america number one. from that, we passed the groundbreaking competes act, high risk, high reward clean energy research and technological development. steam, k-12, making college more affordable for all students, largest college aid for g.i. since the g.i. bill. we expanded broadband across rural areas, strengthen initiatives of the department of agricultural and commerce, and modernize small business investment and initiatives.

i take you that because it made a tremendous difference, but 10 years have gone by and the world has changed after the first innovation agenda, 10 years later we must take inventory of what is needed to thrive. the process of cloud computing, data storage, again, more broadband technology, smartphones, new possibilities within our grasp it we must seize the full potential of innovation and technology or all of america's families and communities. this spring we have again initiated innovation agenda 2.0, convening listening sessions across the country, virginia, i could go around and say the states where we have been.

as we did in 2015, we listen to experts, academics, etc., and today i want to give you an introduction of what we heard and confirmed. i want to invite your views on how we can work together at the local, state, and federal level to keep america number one. it is all predicated on the idea that everything starts in the classroom. education is the greatest investment a family or nation can make in its children. and thank you governors, again, i think governor herbert, helping congress passed the every student succeeds act, very important. as we talk about investing in

education, remember this. this is a fact. you might think some of this is opinion. this is a fact. nothing brings more money to the treasury to reduce the deficit more than educating the american people. early childhood, k-12, higher education, postgrad, lifetime learning for our workers. all of that is so important, and again, we must make college more affordable, reducing debt and making it possible for a world-class education for our veterans. the prospects of big data and information technology have put us all on the doorstep of tremendous advances, and again, all this has begun in the classrooms, but for everyone to participate in it, they must be educated to it in the classroom. big data, information technology, it is a solution to

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

this point, be inclusive. we must be sure every community and every child has access to high-speed always on broadband and the digital literacy necessary to participate in this progress. you know we have an opportunity in our country, some of it springs from an education gap that will never be solved until we address the education gap, but the education gap is deathly definitely affected by the technology gap, the digital divide, and we have to reduce that in order to not only help students reach their aspirations but help keep america number one. as we embrace the power of information technology, we must also keep a sharp focus on the

issues of privacy and cyber security. two of my credentials, one, i am an appropriator, so i understand the culture when i talked earlier about the money coming from here and there, and i am also the longest serving person on the intelligence committee in our country, so i am very concerned about the cyber security issue. i thank you, governor mcauliffe, for putting this issue front and center with your upcoming -- are we ready for that? we must give priority, serious investments, research, and engage in public-private partnerships to rebuild america's infrastructure. building america's infrastructure -- it has never been a partisan issue. it doesn't have to be a partisan issue. you know better than anybody the deficit that is there, the trillions of dollars, the opportunity that is there to build infrastructure, to create mobility, to move people to and from work, to and from home, to school, product to and from market were time makes a difference, especially in

agricultural products, and this infrastructure will create jobs from day one because of the construction that is necessary. we must have a tax credit to and center via's and enable the creation and deployment of cleaner, more inefficient energy technologies. we must establish innovation hubs. this is really important. i want to hear your views when we have a chance to chat. and every region of the country, some of it just gravitates. there has to be a decision made to have them in every region of the country. lastly, we must confront the obstacles facing americans who want to take a chance on a new idea or new business, but are curtailed by a lack of funding or what ever it is, and there is a path you take them out of that valley and have them skip over it. working together as strong state-federal partners, we can ensure that america remains the

leader of innovation and and entrepreneurship. we have a proud heritage and as americans, our sense of community and obligation to our troops. i always think of the vision of our founders, that we must -- that we are very blessed with the sacrifice of our troops that we are grateful for and the aspirations of our children. we have a proud heritage, and heritage always focused boldly on the future. it is in that proud tradition that president kennedy challenged our nation to go to the moon more than 50 years ago. i know you know all about that or you have read about it. for me, it was my youth. for you, it was history. he said this at the time which applies. the val's of this nation can only be fulfilled if we in this

nation are first, and therefore we intend to be first. in short, he said, our leadership and science and industry, our hopes for peace and security, our obligations to ourselves as well as others all require us to make this effort. that is what he said. i say from the declaration of our founders to humanity's first step on the moon to the present day, america has show the world what it means to innovate, to lead, to be first. i thank you all for your leadership in this regard and thank you for the opportunity to share some thoughts with you this afternoon. thank you so much. [applause] go too far in the next administration of the governors association. >> well, thank you, leader

pelosi, i know we have time for a couple of questions. governor herbert has indicated the first question. >> thank you, leader pelosi. we are honored to have you here. we appreciate the opportunity to meet with you. we have been working very well as a bipartisan organization. we think we are a good example of bipartisanship here at the governors. you have mentioned some areas where we have been successful, every student succeeds at, the fast fact, and we have a long history of that. we go back to president bill clinton's administration, will form out of wisconsin, michigan, and utah, and helped us as a country. my question to you is what you see in the next congress, the areas of bipartisan concerns are that we can help you get things done in the next progress that congress. nancy pelosi: i always come back to infrastructure. no matter what we have done, and we have done some good things, we need to do more.

a lot of it is predicated on the fact that science and technology are moving so quickly. as i said before, it has never been a partisan issue, so we are trained to think in a way of nonpartisanship. what we would like to do is ask he have nonpartisanship in the suggestions that come in. that is how we used to do it. if you want to compete -- well, that was in the days and we don't have it anymore, but if you want to have your initiatives concluded in legislation, show the nonpartisan aspect of it in your communities, what the engineering and technological support is for it, and what is

its impact regionally, regionally, not just i want mine for my county, but what is the impact regionally. this is nonpartisan and crosses regional political, county, state, whatever distinctions. i think that is an endless opportunity. tied to that, related to that, is the tax reform, because as you know that first of all, we want to reform the tax code, make it simplified, fair, do the job it sets out to do and there are certain aspects of it like held america bonds, which are helpful in our building infrastructure in our country, some of its bringing from the american reinvestment and recovery act, but also i know a subject of concern to you is the tax deductibility of bonds and how bonds are treated, so infrastructure and tax reform, we can do them piecemeal, but if we could do it comprehensively

and you could get in a nonpartisan way, which i think we should be able to do, again talking about what we could do, i hope it won't take until the next congress, but we have the legislation, you come to see me, the mayors come to cs and the rest. there is a bill would say that where you purchase something, pay this, where it is delivered is where you pay the tax. a republican chairman of one of the committees, we all support his initiative. i was trying to get it in the omnibus bill. our support for that is totally nonpartisan.

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

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

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

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

i would like to take a little credit. it's beautiful. what a great man. >> last night we had an event at the hall of laureates. if you get a chance before you leave des moines, they converted the old main library in des moines to the hall of laureates we have the chinese president there when he visited in 2012. we have the chinese president there when he visited in 2012. it is one of the things going on in des moines. we hope you will get a chance to see those. nancy pelosi: thank you. i hope to be if not, i will when i come back. thank you, iowa. thank you all.

what he did was to feed the hungry and the world through science in a new and different way, so beautiful. thank you. >> governor malloy? >> thank you. it is great to see you again. it is fun to be with you. i just want to say that. you touched on a number of subjects, not the least of which is the opioid situation, and i know you understand that that money is necessary today not tomorrow. in fact, we are way behind where we need to be in this fight against opioid abuse, a person dying every 20 minutes in the united states as a result of overdosing on opioids, and the problem is getting bigger as fentanyl is being introduced on a broader basis and used as a substitute for opioids, so anything you can do to further

that. i agree with you. this is an emergency as epic as a great flood or a great forest fire or great damage to infrastructure that might because by some other means, and so anything you can do, we would greatly appreciate it. i know you get it. we just need your help, you're pushing, and you're right, don't stop. that was my question that they assigned me, so you and i made the point. let me get the transportation, one of the outstanding issues on transportation is that we have a five-year plan that was longer than many thought it would be, but only funded for three years. can you comment on where we go from here? nancy pelosi: i think we have to think in the bigger way. i really do. when you are talking about the infrastructure that we are talking about, a short fuse. it does not work for these projects take a long time. we know that there is something after. every project is not just an end in itself. it is part of original plan.

i think it would never be too soon for us to start working again on an infrastructure bill. we talk transportation, and that's really important, roads, bridges, high-speed rail, mass transit. it is very important. we are also talking water. some of the water systems are 100 years old. they are not even hygienic. from a health standpoint, they need to be changed. so much from when i first came to congress and we were doing our transportation bills, now it is about broadband, technology, the infrastructure to enable us to have a broadband for the future. so it is not just about what our immediate needs are in terms of transportation one way or

another. it is about, again, water systems, broadband, and so much more. so the opportunity -- let me take it away from just federal and local expense. i have been told by some investors and the rest, major-league investors, that the biggest emerging market in the world is building the infrastructure in the united states. there is so much need, over to trillion dollars, some say $3 trillion, by the american society of engineers. in the trillions of dollars, so we have to divide -- there will never be enough appropriated dollars, even public-private-state-federal match to meet the challenges we

face, so we have to be thinking creatively in terms of how we do public-private partnerships, how we perhaps have an infrastructure bank to leverage the dollars we can invest to attract other dollars to get the job done, so this really challenges our imagination, and again related to the tax code as well. some had suggestion repatriation of funds to come home at a reduced tax rate to be used for an infrastructure bank in order to facilitate the investment that we need to make. so again it is not to be limited. we have to think creatively about bonding, about investment, partnership, how we use the sources that might not be readily available, but for that purpose would be. >> let me just say that there is bipartisan testament to the need on the transportation side. every round is heavily competed for.

we have everyone on record saying that we need help in building the transportation infrastructure that will allow us to compete with europe and asia, so any help you could give would be greatly appreciated. nancy pelosi: thank you. i welcome any suggestions you may have on the innovation agenda, the infrastructure, and they are all related. coming from where i do and no than california and seeing this all over the country, we have a new fresh way of looking at all these things, information technology and big data, and again it is all of the things we wanted to be in terms of mobility and cleaning the air and the rest, but from day one, jobs, jobs, and we need the education to be commensurate with it and the investments we make an education, we need them to be aligned with what the job market needs so that at the same time we are lifting everyone up in our society.

>> i think we have time for two more questions. my question is related to cyber security. obviously it is a big issue for all of us, state level, federal level. we have so much data at the state level and we are all being attacked. how can you see the federal government working with the states that we can be included as we move forward with this? >> thank you for your leadership on this and thank you for your question. we have put out resources to the states for cyber security, homeland security. i think it would be important, i know it would be important for us to work together because some states just take the resources, but they don't have cyber security as a priority and how they allocate their resources, so perhaps we can work together to figure out how to put forth storm formula with flexibility of course that says you really have to be investing in this.

again, the technology, advancing the way it is will facilitate some of that, so it is not a drag on the homeland security, but an enhancement. the position that we have now, and i know you are familiar with them, i think they could use some show we say sitting down and going over them and saying what actually works best so that states no that these resources are for this purpose and the federal government knows what the states need. again, in the intelligence world, we talk about needs and leads. what do we need to protect the american people? if we tell you what we think you should do, you may have a lead that is better. so i'm not absolutely assured, and maybe you are, that communication has been what it needs to be to make sure that

you get sufficient funds, but those funds do not ignore the cyber piece of homeland security. we are all burnable. it is a tremendous honor. it has been since the beginning of our country, privacy and security, how do you balance them? that is the job you have right on the front line in your states. if i may say on that score, i have always, again, as an intelligent person, i have always talked about that balance. benjamin franklin said that if you don't have both, you don't have either, security and civil liberties, privacy, but i think right now a third piece has

entered into that, and that is security, privacy, civil liberty, and american brand name. i don't mean just so we can sell american products overseas, but i mean that we must sell products -- american products overseas because we have to be a categorical great technology of the world. if people say well i'm not going to buy american because they have a backdoor and all of that, then that diminishes our security, so i think we should all just recognize that as we balance the equities, the importance of america prevailing in the world in terms of who dominates, in terms of technology being sold throughout the world, but again, let sit together and talk about the

language of the mandates that go with or don't go with the cyber security. >> john bel edwards from the great state of louisiana. >> you did not say i was the best governor in louisiana. >> i said the newest. i've got to many to fight with here. [laughter] nancy pelosi: he will tell you that later. >> leader pelosi, thank you. nancy pelosi: congratulations to you. >> consistent with the idea that states are laboratories for democracy, the national governors association promotes flexibility, but it seems like often from congress that we get a one-size-fits-all approach without the flexibility that we would need to be effective laboratories, probably because we can't be trusted, or that is the sentiment with a lot of folks in washington and

congress, so how can we move past first trust is using get to trust issues and get to where we can have fair accountability, but also the flexibility we need to shape these programs the way we think we could deliver the best results? nancy pelosi: so, terry, this is the newest governor coming with the most traditional question that governors always ask, that flexibility. you learned very fast, governor. that me just say the balance again that needs to be there -- we write a bill for the purpose. expect that the money that is spent would be for that purpose. it is not even a question of trust. it is a question of what is the purpose of the funds that go out. can there be more opportunities , adjusting to

individual situations and states and the rest. i think there is an attempt to do that. but if you think frame a minute that it is about a lack of trust, then we should address that. addressre about lettuce the purpose for which this was legislated and appropriated and how we can have the judgment, the discretion being used in a way that benefits children. with everything that we talked about here, what we want our results. that is the point. how many times have i been here over time, or have i heard that question. clearly, we have not addressed it sufficiently because it continues to raise its head. it is the maintenance of effort,

we don't want to send money. in any event, it is a challenge and in writing of the bills to determine what is the purpose, what are the resources and are there other needs that the governors have that we are not addressing that they want the flexibility to go into this pocket. this is about the state-federal partnership. i respect that you are the laboratory of democracy and that great things spring from the states. many of the things we have at the federal level started from the states including the affordable care act. i want to acknowledge governor padilla for his leadership. it is wonderful that you are here. >> thank you, leader pelosi. i just want to say to my

colleagues and everybody here what i told you privately that i thank you for your leadership. puerto rico is moving out of the crisis we inherited. it's on a perfect law, but it's something that we need. greatu have been a leader. puerto rico appreciates your leadership. paul ryan helped, so thank you on behalf of the people of puerto rico to have to tell my colleagues here that puerto rico and leader pelosi are great friends so anytime your in need you will find a great friend. i am a witness of that. >> thank you, governor. we do listen. i did enjoy being with all of you today. thank you for your leadership and your bipartisanship.

which is very important to our country. thank you governor herbert for your leadership. congratulations to you terry mcauliffe. >> let's give the leader a great round of applause and thank her for her leadership. [applause] announcer: the national governors association meeting education programs, health care and the ecomy. this is just under an hour.

the changing demographics, the changing of the population mix, immigration, the changing of the economy is impactful. it is sometimes stunning. the knowledge of those changes on the demographic shifts will help us all become more effective governors as we engage with our legislators, local communities, business and civic leaders. for that effort -- where did you go? we will turn the time over to scott and scott can conduct this for this session. i will be right back. >> thank you governor herbert. governor brian sandoval was going to oversee this session. he had to step in -- he asked me to step in. they had an emergency event in nevada and he had to return.

i am delighted to step in. i was familiar with the session so i am able to talk a little bit about this particular session. it is called the next generation state, a 360 degree view of changing communities. the reason we put this session in is because it is under the news you can use template. we have been talking about demographics and the aging population and all of these things for years. what it comes down to now is we are at the beginning of the issue. it is no longer an article in the omaha world herald 10 years ago that says, you had better be worried. we wanted the governors

association to start the process of thinking about it and certainly being able to assist the governors. i'm really excited that we are doing this and i know that governor sandoval wanted to be here. as many of you know, nevada is seeing this change. they have not only the aging population but they have an explosion in the southern part of the state in the las vegas area of a k-12 population. diverse k-12lly population. many students coming in where english is not their first

language. what we want to do is to create an understanding in this panel of some of the issues and needs of what is going on with regards to demographics. there are a lot of issues that have come up with the skills gap and other things. demographics has a direct impact on all of these things. on behalf of governor sandoval, i welcome you to this session. let me introduce you to our speakers today. i want to start with tom gillespie. he is the former demographer of the state of minnesota. if you don't have a demographer in your state, you should. you should have a state economist and a state demographer. because they give you kid dictators on how to go forward. he is the director for policy and marketing at the bank of america. one thing i am excited about having him here is that he will talk about not only the downside to the aging population, but the

opportunities that you have. finally, lillian lowery, ceo and executive director of future ready columbus. she is the former chief school officer of two states. that is unusual. maryland and delaware. i will briefly say a few words about the budget and fiscal issues under demographics that we should think about. let me mention one thing about my personal experience. when i was in virginia state government, we had an elaborate process that went on for months in which we determine the estimate of the prison population and we did that to determine how much we want to appropriate for prisons and how much to build. what was fascinating about it was, after going through all of

this methodology come out one of our demographers said, i don't know why we spend weeks on this, we just have to look at the demographics and to determine how many young men between 15-25 exist at any given time and we can extrapolate the prison population. it sounds simple, but it demonstrate -- it demonstrates how demographics are such a key factor in one of those budget-driven decisions. i will turn it over to tom. he has some slides that i think you'll find interesting about the aging regulation and in the financial implications of the demographics and the diversity we are starting to see. >> normally, demographic change proceeds at a glacial pace but we are seeing rapid changes and the impact of demographic change

that affect public services, demand economic growth, and state budgets. the biggest one is aging. we're getting older. this is not a normal thing. this is the first time in the history of human society that we have seen something like this happen. it is happening on a global scale. many countries of the world are experiencing this. by 2020, that is only four years away. more people over age 65 and we have kids in k-12 education. for the 65 and older population we have more that will continue from the k-12 population and have record numbers from the people receiving their social security check. in addition to aging, america is growing more racially and

ethnically diverse. by 2044, we will no longer have majority race. all of our races and ethnic groups will be minorities in some respect. this also has an age component because our children are much more diverse than our older population. education is a critical element in our future and our future economic growth. here we see very large-scale differences by rafe and -- race and ethnicity and poverty and

non-poverty dimensions. not only are these large differences but they are our highest performing groups. they're not performing as well as we would like to see them perform. we need to ratchet up our performance across all of our groups and society. growing numbers of jobs in our society because of technical ago -- technological changes and other changes require more than a high school diploma. they require an associates degree or the college degree or some kind of training beyond the high school level and this is increasing over time and the

educational requirements are expanding as we move into the future. our children may not actually be prepared for the jobs of the future as we saw. state and revenue growth will suffer if we do not meet the demands of jobs in the future. medicaid is in minis dates the fastest-growing component of the budget and right now, medicaid and k-12 education is beginning to squeeze other components of our budget, this will increase to medically, reticular early after 2025. if you think that is ways off in the future, that's only 10

years. after 2025, many of the baby boom generation will begin to approach age 80 and we will see rapid rises in dementia and chronic health issues related to aging. unless we are prepared for that day, that will squeeze state budgets. that leads us to conclusions about the impact of demographic change. it is important to understand that this is not a short run issue. the issue is structural so that quick fixes will not solve this issue. we need to see long run structural changes. economic growth is likely to slow if we do not see those changes and efforts to increase revenue will be met with increasing resistance.

spending pressures will continue to increase due to aging and health care costs. dealing with our legacy costs -- also bonding and other legacy costs will be a major challenge for state government budgets going into the future. without fundamental change, the state spending will shift. and committing social services to health care and pension costs with an application for future revenue growth beyond that so if we focus on health care and pension costs our future economic growth may be diminished as a result. >> look a dramatic the changes we are seeing are. taco at the implications of the

about the implications of the aging population but also the opportunities that states and governments can think about as those changes take place. >> tom put together a data set -- we look at it as an opportunity set. i look at it from a consumer demand perspective. when you think about baby boomers, they are 60% of the total spend. the same spending in terms of health care is 73%. i look at companies and i say

that is demand. at bank of america, we look at this opportunity set and we called it the similar economy. -- the silver economy. we said, if you add up all of the demand, how much is it? we think, globally, the size of the super economy will be $15 trillion. in the u.s. alone that will be $7 trillion. for illustration purposes to understand what $7 trillion means, if you would take that segment and look at it, it would be the number three economy in the world. how do we as investors take advantage of this opportunity? we think there are three tracks. one is through health care and pharma, the second through financial services and the third through consumer -- i can spend

a lot of time with charts and graphs but we illustrate them with examples. let's take health care. in that study about health and retirement we asked, what is it that boomers are concerned about in their later years. the number one fear or disabling condition was alzheimer's. it took us by surprise. we thought cancer or something but alzheimer's, why is this a concern? the number one fear for the disease is the loss of a sense of freedom. taking away my car keys. the second concern was a fear of loss of dignity. the third fear is that of being

a burden on their family members. the cdc says, when we turn 85, the chances of being in steep cognitive decline is one in three. two of three couples will go into steep decline in alzheimer's at age 85. public policy makers have woken up to this. the only disease that got their funding doubled at the nih's alzheimer's. it is still small compared to spending on cancer which is $6 billion. for us, alzheimer's is whitespace. if you as a company want to invest in the area and there is increased funding or if you are a state looking for facilities want to start, alzheimer's would be a great place to go. customer fear means dollars. in the financial services base,

we see a really transforming world. when we talk to our customers about clients they don't just want to talk about money management. they really want to talk about health and home. and working past 65. live clearly expressed that when they invest their want to focus on doing good for communities and earning a fair return. there are a few of us at this table who have worked on social impact bonds to reduce the incidence of prison recidivism. this has governors shifting risks to investors. the nga staff a year and have ago had a discussion about how to take social impact bonds into the various states.

the third one is consumer goods and technology. there is a company in california that has an app through which with one click of a button you can get health care services for mom and dad. uber-ization of health care. if you think about the demands, 50% of changes in home renovation is by the boomer set. plumbing companies, technology companies, all of these organizations looking at the consumer economy as an opportunity.

the question is, as investors -- as states, huddy attract these companies that will focus on the consumer economy to -- focus on

the super economy to grow the gdp and jobs? >> that's great because that makes us think about things that i know i have the thought about in terms of aging the population. often we see it only in a negative way and it is nice to hear a broader view of what kind of services will be needed and what can of services the private sector can do to deal with and deliver those services. now we are delighted to have you because you have specialized services at all levels of education. one of the things that is so interesting about demographics is these changes have begun taking place at the public school level. you walk into a grocery store and you see people of all ages and you see one set of america, you walk into public school and you see the future. so lillian, we would love to hear about your thoughts on education and demographics changing in the u.s.. >> the data you have been presented today are aggregate data but if we diss aggregate we can see some of the challenges that face state i state leaders. i will give an example because we do want to get to the q&a and since i'm bringing up the and of the conversation i what to make sure we allow time for that. i will give you an example of how the state of ohio in particular is addressing the data and the circumstances that have been delineated for you here. the columbus partnership is an organization of the 52 largest

ceo in the central ohio region. a significant number are in the health care field and financial services. looking at these data is something they have been doing overtime. they have taken on every frontier on economic development and how do we grow new businesses on technology. how do we innovate and create some we have the kind of apps they can give families access to

elder care. along the way, when we started talking about the aging of america and the kinds of numbers where this gap is growing with more boomers than people in the pipeline to plan or innovate, they realized that education had to be a part of their portfolio and realize that what they do really well is run their businesses and grow job opportunities, education was not in their wheelhouse. so they stood up and hired me to come there and advise them on these kinds of discussions and these kinds of data. they can find things working really well from zero to 24 years old as we think about the pipeline that we will have to backfill what is happening in our environment.

what is working that we can accelerate or expand and where are there gaps that we can use innovation and creative energy to solve for ask if it is a deficit in our environment. what we start out with that many of you and the governors have heard over and over again -- because of the browning of america, because there is no majority anymore, we are dealing with children who are not just born here but a lot of new americans. in ohio, the second-largest somali population are nepalese. olivet is integrating into the ecosystem. what we are trying to do is look

at what happens to them -- all of this is integrating into the ecosystem. what we are trying to do is look at what happens to them when they are integrating. we're looking at what kind of high-quality care is available to our children before they get to kindergarten because we are hearing stories that children show up to kindergarten not knowing how to hold a book, not knowing numbers, the alphabet, their names or how to spell them. that means the achievement gap does not walk into the door with them. using ones like the ones described to you -- it's one less example. i will stop. governor kasich -- one last example. then i will stop. governor kasich has the community mentoring program which includes community organizations -- they go into communities. based on their plan of action these boomers who are

force and talkk about personal discipline and personal responsibility and the social skills they need to be successful in the work force. he has something called the straight a fund around innovation in creativity where he engages the business community in local jurisdiction to partner with schools, colleges, and universities to look at innovation and creativity around stem. lots of those opportunities are not something that would normally happen with a school on its own so the business community, the philanthropic community and organizations that understand their ecosystems far butter -- far better than someone sitting at a distance is benefiting from up to $1 million per year. to develop plans for their

communities. i will end by saying that we are so pleased in public education and the example set each of you can look to. governmental leaders in the schools working together, whether they be public schools, private or parochial schools. if we are not all working together to ensure we are developing the pipeline needed to backfill this workforce where we are preparing our students to engage in their future then we miss a great opportunity. in education we see this as an exciting opportunity to focus our work in a way that will be beneficial for the common good. >> what a great example of innovation to deal with some of these challenges we are seeing right now. in a moment we will open this up to the governor.

i want to say a few things about the budget and financial impact. you, unlike the federal government, states have to balance their government. -- balance their budgets. from a financial standpoint, it is a zero-sum game. as tom pointed out, i can certainly emphasize what we are seeing is a situation in which the expectation is that revenue will grow slightly below average for years to come and not quite the same level we had from world war ii until the early 2000's. you have a limited expectation because of our tax systems and the changing economy for a weaker average growth rate of revenue. on the spending side, you have a lack of flexibility. i always say, there are certain

things you cannot do at least immediately. there are those expenses that are fixed and often growing. you have a difficult fiscal situation and what is really interesting, the demographics of such a critical role. we know at the health care leveled her is no question that the aging population has a huge impact. you point out that a state like utah or nevada where they have fairly significant k-12 populations. one of them is this issue of the pensions. that states will have to put more general fund moneys into their pension systems to ensure they are fully funded or adequately funded.

the flipside is not to put the money in and then you put in the pension system or create a risk. there will be more pressure over time. the actuary say you will need to put the pressure on or put additional funds in the pensions. over the next 10 to 20 years there will be a huge dramatic issue for states simply because of the additional funds necessary. perhaps your budget finance directors have said this to you,. a budget crowd out. as you have to put more money into certain things like medicaid, it crowds out the funding available for higher education or other things. you have some great political

and financial dilemmas going forward. obviously, food for thought in so many different ways. i would like to take a few minutes to open this up to the governors. we have an incredibly esteemed panel of experts on this issue and it would be great to hear if you have a particular question for them. i cannot tell you how many times in the sunday paper there is always an article about the aging population but now we are seeing them -- that these actually have implications for you in your state. governor herbert, i turn this over to you. >> we certainly are open to questions. the expense side as you touched

on of the changing demographics is impactful in many ways. you mentioned utah. we have a fast-growing birthrate so our impact on schools continues to expand where other states are leveling off. so for my budget i am impacted by that higher birth rate. i expect we will follow the national trend and slow down. i've taken the pledge and i will not have more kids. that is just one aspect but i see an aging population with more impact and more reliance on medicare, health care, government assistance. we have immigration coming into the country. undocumented immigration is certainly a cost to the country. the concern that we have is, are we adding to the burden of the

tax payers by having more and more people on government assistance because of the changing demographics? other countries out there have a hard time growing their economy because so much of the gdp goes into supporting. supporting those on government assistance. tell me about the demographics, are we going to be able to support this? >> i am very optimistic about the future. we will find some solutions for critical issues. one of the things we need to discard is the notion of that once you turn 65 you are ready for the scrap heap are ready to take a long vacation and not do

anything. the worst thing we can have is people doing nothing. keeping people active, finding ways to keep people in the workforce in ways that they would like to do. that helps grow the economy and keeps critical skills in our workforce. finding alternatives for retraining and things like that but beyond that, once a person leaves the workforce, opportunities for volunteerism or things that can defer some of the state expenses while keeping people active and make them feel

like they are making a contribution to society and in doing so will be healthier and longer lived and less expensive to state government budgets. there are tremendous opportunities. this is not a one-sided thing. we need to think alternatively about how to move forward in the future. >> as we were looking at boomers and surveying boomers, we were surprised that 85% of those surveyed said that they want or need to work past 65. those who said that they want to want to do it on their terms. the question is, are companies like mine set up to take on senior workers and are the policies at city and state

age-friendly? >> i would simply say that one of the things that really enticed me to take on this ohio opportunity is that the is this community is all in. so they are willing to invest with matching funds as long as the plan makes sense to them and they can maintain productivity. >> what you have illustrated and what we have probably all known intuitively is that demographics are changing. the question is, are the policies changing to line up with the demographics? we had president bush who tried

to say we need to get social security on track with actuary -sound projections and it became a divisive issue and we kicked that down the road. i agree that people past 65 don't want to be put out to pasture. they went to find another way to be retooled. when you look at the last 100 years and america, the average lifespan of an american was 47. and now it is 78. for women it is 82. i don't see a lot of change in policy. are we just going over the cliff saying, we have to change social security, push it from 65 to 70, -- >> one stat that i wanted to add

is for a child born today, the chance of that child living to 100 is one in three. we will have a society living up to 100. so things have to change. >> for 35 years i work in state government and was reaching these issue saying in the long run this is going to happen. the response often was inappropriately so that that is the long run but we have more immediate short run issues to deal with. what has happened is the long run has become a short-run issue.

we cannot kick the can down the road anymore. we have to start making some decisions. the idea of public and private partnership is brilliant because many corporations are also very concerned about these issues. that sets up the real possibility for making dramatic changes in the way that we deal with an aging population. >> i hope you have all thought about this. you have a wonderful role in your bully pulpit to ask people and encourage people to save for retirement. if you see the statistics, they are terrifying. i'm not doing enough and i'm trying to get prepared with my 401(k). and i am pretty educated. are there ways within your state to ask your citizens, what are you doing to think about and save for require -- for retirement? i think we will have a terrible

crisis in 15 to 20 years with people getting to that point and who are unable to live on what they have saved, even with a supplement of social security. >> i sometimes feel like demographers, those looking to the future, like paul revere running chemistry trying to tell the people, there is a problem coming. and we are being ignored. as elected officials, i think we need to take it seriously. >> other questions? dennis and then john. >> i have to confess that i'm in a relatively good position in south dakota. the governors before me and the legislators in the past have been fairly careful about some

of these things. notwithstanding that the sum of the things we have shown on the charts and have predicted as coming, we have already started to see in south dakota. we are seeing medicaid come in an ever increasing fraction of the state budget and it is crowding some of the other things that the state budget covers and that is true in a state that really has avoided some of the long-term liability issues. this year with the stock market over the last 12 months ending on june 30 it was not so great, not meeting the investment projection. we will be 93% funded or something like that. relatively good among the states but certainly a harbinger of what could occur down the road

and it is already occurring in states like illinois where the underfunding is severe. what some states are starting to do is within our reach. that is changing the pension plan for new hires. some states have been doing that, keeping the pension commitments that have made to workers that are on the workforce c-span.org -- workforce. that is a long-term solution. it will take some time for those currently on the workforce to move into retirement age or death and then the new employees will be offered a more modest plan that is more realistic in terms of what they can afford. that is one thing we have done. i know iowa is very much like us.

they have low debt and a well-funded pension plan. i look at the nation-wide averages and compare the other states with significant pension liabilities. i can see that what we have started to experience on a minimal level is probably going to occur on a significant level in the not too distant future. we have had to do something's to forestall that will stop -- that. we raised taxes to increase funding for education. medicaid was edging out our ability to do that. listen for infrastructure. we had to raise taxes for infrastructure. we are right behind iowa in that regard. they raced their tax and we

shortly thereafter raised our tax. i think that the citizens will accept those kinds of things if they feel the dollars are not simply to pay for past sins, but to pay for prospectively better futures. i worry that, if we do not move quickly, it's like the fundraiser who wants to come and raise funding for a building that is already built and they were to raise money to pay down the debt. it is a hard sell. versus the college advancement officer who says, let's build a new science building. your knowledge will make that

brighter future possible. it's not so much a question but a comment that some of the perspective futures that you have shown us through those graphs and slides are even occurring already today. >> governor edwards? gov. edwards: the question i have is for mr. gillespie. governor herbert was talking in terms of the burden of the aging population. a lot of that is progress. there is a cost associated with progress. people are living longer. there was a time when you had a heart attack when you are 50 and you died. now you're living much longer because of medical science and pharmaceuticals, meaning -- i'm

making this up because i do not remember the exact amount, but you consume 90% of the health care of your life over the last 10 years of your life. that is a tremendous cost. if we want the progress, we have to find a way to pay for it. there is a revenue component. if you allow medicaid to squeeze out your investment in education, you will have less revenue with which to pay the cost associated with it that progress. this is all extremely hard and if you focus in on one part to the exclusion of another you will be completely out of balance as well and i ask you to comment on that. in one sense, and i totally agree, in a large sense we are the deviled by our blessings. we have been richly blessed as a society, we have more

opportunities and we live. we are complaining because we are getting older and eventually we will not be as active and it will cost a lot. the main thing is that we need to be aware of it and plan for it. so while many people listen to the numbers and think of it as depressing, i don't think of it as depressing. i think of it as something that it simply is. we simply need to prepare for it, go forward, and recognize that we are living longer, we are living healthier. what a fantastic time to be alive. i don't think it is a negative thing.

we just need to be aware of this and it's and locations for budgets and the able to deal with it. >> one of the things we were working on when i left the state superintendency -- i believe most states have infused financial literacy from kindergarten through twelfth grade. it's about planning for situations where pensions may or may not be there when you have to go away and pay huge amounts ago to college. i would advise states to look at those curriculum to make sure we are starting with these children early on and helping to get their mindset to that responsibility for living longer and what that means financially for families.

>> i didn't get the whole presentation, so i apologize if this was covered, but the reality of your discussion over the last 20 minutes can do nothing but lead us to conclusion that the discussion of entitlement reform that is not income-based is for all intents and purposes an impossibility. when you say in the next 20 years we will have a tidal wave of people who have not saved, there is a certain reality that we are living in an economy where people are not capable of saving. we spend a lot of time and energy in the united states pretending that we will suddenly take people living in poverty, or projected to live in poverty, even with the benefits we are providing and we will somehow reform those in a way that we will save money that is an aching -- anything but income-based becomes an impossibility.

i would urge you to take the show on the road and spend time in washington, d.c. the states cannot act up the difference so it is an important discussion and a reality that we need to confront as a nation. it's fun to talk about, but it is not reality. that is my comment. >> it occurs to me that if we took tom's data, which is national, and made it state-oriented, that would put a layer on top of that that asks the question, am i, the state, a net exporter of senior citizens or a net importer of senior citizens? that has an application for gdp. if you are focused on the expense side, i have a problem.

if you are focused on the revenue side, and you are a net importer, you can drive revenue. i would ask, what does the state demographic look like? mi a net importer or net exporter? mi set up to attract those -- am i set up to attract those companies that will focus on this? >> i think we have run out of time. let's give our panel a round of applause. [applause] we will now take about a 10 minute break. we have our last session on cyber security. we invite everyone to stay but hurry back.

announcer: governors attending the governor's association's summer meeting in -- this is an hour and 15 minutes.

to our closing plenary session. we thank you very much for your attendance. we have special guests that will be introduced to you shortly. of our guess and sponsors, we thank you for your support. while i am talking about that, let me say, to be a chairman of this great organization is an honor. is a great organization doing great things for our country, for our respective states. it is an out -- a noun or for me to serve as your chairman. excited to have sherry take on that responsibility in a year.

i have come to appreciate in the chairmanship role significant help to get from our nj staff, kind of the unsung heroes behind the scenes. yet they make things run smoothly and on time and help us as governors look better than probably we deserve. i want to thank the national governors association staff, the bipartisan effort, the advice that comes to us from them as we sort through a lot of material is very impressive. this is my seventh year. i have never missed a meeting. i enjoy coming. i enjoy associating with the great governors and leaders of our country. they are doing great things. we have guests that come from time to time and give expertise and counsel. i'm a big believer in this organization.

i would like to thank scott patterson -- where did scott go? our new executive director, who has come with a mandate to raise the awareness of this organization around the country and help us having more impactful profile. i'm a big believer in state and the roles that they play and frankly, i believe the states are -- many times, the states are the best part -- hope for america, have america sting the right direction for the people of this great country. i know that governor mcauliffe will continue that same legacy. he understands the significant, important role that states play and i know we will turn the reins over to him in good hands. with that, i would like to call on larry hogan, who is our nominating committee chair to come and report on the nominating committee.

so, larry? governor hogan: thank you, mr. chairman. on behalf of the nominations committee which includes governors baker, hutchison, hassan, and tomlin, i am pleased to present the slate of nj officers and executive committee members for 2016-2017. for membership on the executive committee, governor malloy of connecticut, governor bullock of montana, governor nixon of missouri, governor branstad of ohio -- i mean iowa. what a big blunder that was, huh? our host your today. governor mccrory of north carolina, the governor of tennessee, have herbert of utah, and as the vice chair, governor brian sandoval, and for our next nga chair, my good friend and neighbor to the south, governor

terry mcauliffe of virginia. chairman herbert, on behalf of the nominations committee, i moved to have this outstanding slate adopted. governor herbert: well, thank you. we have a motion on the floor. is there a second? second. any discussion? hearing on, all those in favor say aye. motion carries. thank you, larry. appreciate your good work. before we turn the gavel over to our new chair, i ought to make some recognitions of those leaving their service with us here. am just trying to check to see who is here. but those who are not with us -- this is their last meeting as

they exit office -- we have governor jack markell, peter shumlin, jay nixon -- i see maggie hassan. she is leaving, 20. i think she is running for the senate as i recall. earl rate -- is earl rate year? -- is earl ray here? earl rate tomlin -- earl ray, one of west virginia. come on up. governor padilla, we have a plaque for you. [applause] we appreciate your service. governor padilla has been involved in a lot of great things in puerto rico, and we

all of the challenges you face, governor. really, one of the reasons he is not going to be with us is he is stepping down voluntarily, not running again, to see if can concentrate on helping get puerto rico's economy back into a healthy condition. that is a true sacrifice and that is true service. and we are honored to have you as part of our colleagues here in the national governors association. we wish you well. you have done great work there in puerto rico, not only as governor, but prior work in transportation and utilities and things important to go. we are going to miss you being your, buddy. governor padilla: thank you. governor herbert: we offer this in recognition of you, so -- [applause] governor herbert: ok. i think we have the opportunity -- i don't know if this plaque

is supposed to head to you or the gavel? [laughter] governor herbert: terry, you are in jar. -- you are in charge. [applause] governor mcauliffe: i would like to -- on behalf of all of the governors -- presented this gavel to recognize the service of gary herbert who has been an outstanding share of the national governors association. i can tell you personally serving alongside gary, we have built a strong, strong friendship. it shows bipartisanship works. he has been a gentleman to all. he has listened to all of our ideas. i've got to tell you, he has been a great leader. governor, on behalf of all of the governors of the national averages association, i would like to present to you this gavel in recognition of all of your outstanding work for the nation's governors area

-- nation's governors. [applause] governor herbert: thank you very much. thank you very much. terri is going to do a great job. you all do great jobs. state are the best hope for america. keep up the good work. thank you. governor mcauliffe: well, thank you, y'all, today. i cannot tell you how honored i am. i am honored that governor brian sandoval will serve as vice chair with me. we will make quite a team. brian and i are committed to making sure the role of the nga -- the nga's influence is recognized. as we embark with a new administration coming in, we want to make sure the governors are at the forefront to talk over the joint concerns of all of us. one of the ways i do plan to move the national governors

association forward is through my initiative, which is to meet the threat -- states confront the cyber challenge. this will highlight an issue i have been focused on since my first day as governor, cyber security. in addition to providing states the key resources they need to meet this threat, my initiative will build on the strong work of the nga resource center, an effort i have chaired for the last year and a half with governor rick snyder of michigan. i know firsthand my work in virginia, i hit this issue as soon as i took over in the commonwealth of virginia. just to give you an example, so far, virginia has had 53 million cyber attacks this year. that is every four seconds. that is 300,000 cyber attacks a day. we have successfully blacked

4422 -- blocked 4422 malware attacks. we know it is both domestic and foreign actors continually probing and infiltrating critical infrastructure to access sensitive information and our systems and if they are compromised, they can have significant consequences to our citizens. they are looking to encrypt and attack our systems for data. financially, it has cost the united states economy over $300 billion annually. yet our ability to confront these threats is hindered by not investing in our education system and our workforce development programs.

we need to grow, train, and retain the best cyber security personnel in our states. as a result, we are missing out on, growth due to our inability to meet cyber security demands in the private sector. virginia has 17,000 jobs open in cyber security. the starting pay -- $88,000. thousanding pay a 88 dollars. that is $3 billion of world. you are making sure we're schools so thegh adapt to our growing need for cyber warriors. townommission has held halls throughout the commonwealth of virginia which led to recommendations.

economic development, cybercrime, cyber infrastructure, and network section. sinceroud to say that establishing this, today virginia has become the first state in the nation to adopt the national institute for cyber framework. tankve legislation protect citizens as digital entities. all of cyber security in our state agencies and we have an enhanced cyber policy. and we have increased our ability to prosecute cybercrime. the number of centers of economic excellence at virginia colleges inch universities a end introduced cyber initiatives in the 20 17-to the eight teen budget. if you give us two years and

state government, we will pay for your cyber degree. we also put a program together for our returning veterans. we have the most veterans are of state in the united states, more female veterans, more veterans under the age of 25. veterans everyut year and we want to make sure we can put them right back to work when they return. is to expand virginia's economic footprint in the cyber security or. already have a strong base and we are positioning virginia as an international player. four days ago i was in israel are a are going to make an investment in the commonwealth of virginia for assistance. this is going on all over it the globe. virginia is home to the pentagon, the cia, oceana, and the largest naval base in the

world. all of these have constant cyber attacks. weare trying to make sure tech to our federal assets so they continued to grow. home to 450 cyber companies, the second of any state in america which represents an increase from 450 in 2011. virginia was chosen for a new era for cyber operations that will be established at langley air force base. 670,000 850 virginia's work in the cyber sector and that number is expected to grow by 25% through 2022. our aggressive approach to grow our cyber session is part of our plan to be able to be capable of withstanding.

we have done across all the states and the country so that everyone can best be position. virginia is on these issues, it does not matter for another is not because we can go to a state with weak cyber protection and go through a back door if they want to get to virginia for stop so our goal is to make sure all 50 states are using the protection they need to go forward. governorrovide resource and direction. this affects all sectors of state government including health care, education, economic development, infrastructure, and public safety. there will be a series of regional summits designed to educate on how cyber security interact with state government. the idea is to provide specific takeaways policymakers can implement immediately.

we will also develop an online resource library. include adducts developed throughout the year aimed at assisting states in creating, improving, and fostering strong cyber security states. there will be templates you can use and a cyber security strategy. critical cyber issues and a compendium of cyber security, many we have already done in virginia. just bring it back to euros state and push through executive orders. cyber security documents and legislations we have had a proved so you can begin to move to do it immediately yourselves. i'm excited to announce her this initiative we will launch podcasts featuring the leading cyber security practitioners discussing issues of importance to our state government.

thee will be hosted on initiative website and through multiple podcast platforms. in front of each of you is a checklist. you can use it to begin to assess your state possibility nest to meet cyber threats and leverage opportunities that exist in the new economy. i will not speak of all states, but we have been working very hard. today, five states have taken leadership and they are in good shape. 20-25 states have made good progress. 25 states have a long way to go. my point is, if there is a week link, it it affects everybody on the chain-link. it is my goal that one year from now, he just one of you along with your colleagues not here today will be equipped with answers to each one of these checklist items. this not only protects our infrastructure, it

creates economic opportunities. this is one area they federal government is going to spend billions and billions of dollars on. as a governor, if we're spending that kind of money, i want to make sure we're getting our fair commonwealth of virginia. hiring personnel with the skill sets to make it happen. all of us need to be thinking of what we're doing in k-12, computer science, k-12 the and critical high school years. to greatith us today leaders who will help us train, understand the role of government as it works with the private sector. executives in their own right and play a very important role in protecting our companies. we of two outstanding leaders with this today. i have the pleasure of introducing susan, the president american lawyer.

anthem, as you know, has nearly 100 million folks. both of these individuals deal with cyber threats in each and every day. as you know, nothing is more important for human health than clean, fresh water. ,uch attention has been paid today's discussion will highlight how cyber security looks at the broader infrastructure sector. the entire industry is transforming how it handles information into data and proper cyber security measures are needed to safeguard information and guaranteed the delivery of life-saving medical services. not face challenges dissimilar to what we face and

our respective states. to today have a cyber security background. they had to very quickly learn of this complex issue to spearhead. let's start out first with susan. she will provide us background on her company and what she has had to do to deal with these cyber security issues. susan: thank you. i would like to thank governor mcauliffe for making this your chair's initiative. it is critical not just for governors, not just for utilities, but for every citizen in this country. it is very timely and important. thank you for the opportunity to participate. thank you for hosting us in this beautiful city.

great to come home. thank you so much. what i want to do is as governor , you know this. chief executives with thousands of responsibilities every day. probably nothing as critical as your responsibility to protect the people in your state from any of the critical services. fire, police, health and human services. these are things that people take advanced -- for granted every day but you have to think about every day. coming to the water industry three and half years ago, we also have to think of the critical service challenges. after hurricanes, ice storms, flooding, we have to make sure

people had the critical services they need. statey organizations and agencies have to do this and the fact is we must work together. water has regulated operations in 16 states. militaryerved installations across the country. we also have 41 different municipal systems. are in 37 states. what happens in your state matters to us and we want to be part of the answer. so what i want to do is talk a but theit about cyber, critical infrastructure, you cannot separate. everybody here knows the internet of things and has different definitions.

let me tell you. our that means is that cyber is not just our systems. system that runs the grid. the systems that make sure the treatment plants are operating. it make sure the water gets through the pipes and we do not have water contamination. you cannot separate this in the andd of infrastructure ailities whether it is municipal utility or investor owned like american water. do?hat do we need to what do we have to do? from american water standpoint, there are four things. aboutot going to talk cyber security in general. i want to talk about specific

preparation being done that to going with.etting maybe you have heard of this. it was headed up by deed department of homeland security and the utility industry. in 2013, they started looking at an event. what if there is a electro magnetic pulse that takes out a grid and people have no electricity for at least 25 days? how can we withstand that? they went through that year and realized the number one problem would be water and sanitation services. how would you have evacuation of urban center with no drinkable water and no

sanitation services, so you have issues around diseases. we spoke to the group, and they said we want phase two, which will be released this summer. phase two will be the water sector and fuel resources during these times. what is important about this, the u.k. and israel were part of this effort. again, it was headed up by a consultant from the department of defense, but they very much want to get states involved. as a matter of fact, when the report is issued this summer, they want to have a checklist for public service commissions in every state in terms of what they need to make sure is happening with utilities and their state. water, electric, whatever. it is a big effort. it is called black sky. i want to talk a little bit about how you approach the black skies initiative. some of the things we're doing, technology. our systems -- cyber security cannot be an add-on, it has to be part of the fiber.

as we develop an intelligent water system, a corollary to the electric smart grid, we have to make sure we build that protocol into every part of that technology, not something on top of it to make sure we monitor it. it has to be part of the resiliency of doing that so that the investment and technology is critical, but it has to include everything around physical and cyber security from the beginning, so we can make that the fabric of the system. the second thing is, just like the state of virginia, we voluntarily adopted the standard that the electric industry adopted. we hold ourselves to strict standard of the electric securities and the grid. it is voluntary for the water sector because we move forward, it would not be advised for a not to become something that every water provider becomes a part of in terms of standards. the third thing is, as we look at what we need to do in partnership, if you do not remember anything else from the comments i make today, we all

have to work in this together. at american water, we partner with the environmental organizations, the infusion centers that we you have. we partner with public service commissions, and the emergency planners. on a federal standpoint, we are able to help states because we partner with homeland security because of critical infrastructures, they are a huge partner of ours. in fact, homeland security comes in every week to our company and tests systems. external facing website to see, how can somebody get in? and we take those comments and make sure we keep our system from people being able to get into it. we also partner, however, would the fbi, we partner with the department of defense. we partner with the centers for disease control, interestingly.

we work with them on how we would deal with it ebola. we worked with them two or three years ago about dealing with waste. and, about potential water contamination. we have to find intersections where we force conversations among all of us. it is critical that what one person knows, the other knows. that we have open communication on things that are happening out there. another thing i am proud of, at american water it is not the job of our i.t. department or operations department. every level of employee including myself and my board of directors gets involved with cyber security. at american water in 2015, every state had an exercise with information technology. then, the executive leadership team that i lead, we took an all-day session, might direct reports. only i and the head of fiscal security, we spent all day

seeing how the senior executives would react to a ransom with malware intrusion into our system. and we took it to our board of directors and said we will walk this through with you so you can see how we handle this. we will spend two hours. and you will hear from joe in a few minutes about actually going through this and how they did the magnificent job they did dealing with an intrusion. but another thing we did, price waterhouse coopers has developed a simulation game of cyber hacking. the most incredible thing i have been through because it is real life. you divide up into two groups, one is the hacker and the other is the company. based on what each side decides to do, you have to decide in real-time how to deal with that intrusion. it is a lot easier to be a hacker than it is to be the people protecting the system. whether it is companies or states or local agencies, it was incredible how difficult it was. but it was a really great exercise to go into.

line, i will tell you that at the end of the day, we have to look at physical and cyber security, and the integration of the two of those for the critical infrastructure in your state and our companies. number two, it is not enough to be able to keep people from getting into your system. someone will find a way to get in. how will you handle it when it happens? and if we do not have that part, , it is a mistake. defeat them 100 million times, but if they get in once, business, inn your water and wastewater, and by the way, you have to make sure you have a fire hydrants. so it is fire protection also -- cannot let that one get in. we have to make sure that when they get in we find a way to stop them. i do have a call to action for the states and the governors. i think there are four things we

need to do together. number one, please promote communication and teamwork. make sure your agencies are working with all the utilities. make sure the utilities commission, electric, gas, water, we are doing it together. and we bring in the federal department of homeland security. it is really important that people are talking and sharing information. the second thing, we have to make sure we also have resiliency in our assets and infrastructure. this is not easy. from a water industry standpoint, we have in many of our states the ability to get capital investments in real-time in terms of every year, in terms of replacing pipes. which is really important. but to get approval for doing something for resiliency that you hope never gets used, and for you as a state leader to invest in things you do not know you will ever use or not but is there if you need it, we have to

figure out how to deal with that. that is not an easy task. the third thing to look at is private-public partnership. nobody can do this on their own, and we all have to share best practices. because we are all trying to do the same thing and we are after the same objective. the last thing i would tell you, we need to head up simulation exercises in our state. six weeks ago, the commonwealth of pennsylvania did a black skies simulation. they brought in -- there were 130 people. federal agencies, the military, homeland security, state agencies, all the utilities -- they all came -- they all came together for a full day for a black skies simulation. if we are faced with en extended outage where we cannot get power for 25 days, how will we keep the water systems running? how will we keep the sanitation services it going? if we all work on these together, we can ensure that your citizens, our customers, have a vibrant, and can feel

more peaceful knowing that we can handle whatever comes on. [applause] >> thank you, susan. joe, i think people think of health, they do not think of it as critical infrastructure, but it is clear that cyber terrorists out there clearly are targeting health information. in fact, it is one of their chief targets. anthem, as you know had one of the largest attacks in our nations history. there is a proposed merger going on, probably every american will be touched if the anthem merger goes through. it is a big deal, i have five children. some of them had information taken. what did you do to respond to that breach? >> thank you, it is an honor to be here.

anthem serves and 26 states. in fact, we serve many of you. we are involved in a variety of health benefits engagements, whether it is state employees, medicaid, medicaid beneficiaries of a variety of sorts, we have a very deep engagement in many, many states. we take our responsibility to protect data, protect the very nature of how our members engage in the marketplace with respect to monitoring and managing their health status, true personal health information has to be guarded. it was for me as ceo, incredibly troubling, and quite frankly, mind-boggling that we could experience a breach of the scale that you mentioned.

so what i first want to say is congratulate the governor, working the commonwealth of virginia with respect to the speed with which you took it on as a priority for the commonwealth. the leadership that has been exhibited, and now the populating of state resources of that hopefully you can take a lot of information in terms of your learned experience out of the marketplace. it is a phenomenal gift to all of the states. so let me share with you what we experience. and again, in terms of understanding our company, we touch 72 million lives. in a variety of ways. the majority are related to health benefits, balance of the millions related to a lot of specialty services around life, health, and dental services. we have a very sophisticated i.t. infrastructure. in that regard, we invest tremendous sums of money in order to protect the data. what happened is, about 18 months ago, we learned of the

breach and it touched 80 million records. as you pointed out, the largest breach in the nation's history. we do know it was a state-sanctioned breach. and we do now at least by virtue of our relationship now which is very close with the fbi, the we have been assured that none of that data has gone to the black market. and that is an amazing revelation because where it typically ends up is in the hands of people that use it for commercialized purposes, from a criminal perspective. that did not happen. so we are very pleased with that outcome. notwithstanding, we are very concerned with respect to the intrusion in our system, how it happened, and how we can manage our way out of it. let me first talk about the fact that the growth in technology as we know is unprecedented.

and now it is escalating at an even greater pace, greater depth with respect to social media, with respect to tracking technology, with respect to computing technology, it is ballooning at an exponential rate. what we are mindful of is both regulation and policy with respect to creating privacy and security. we are focusing on understanding vulnerabilities, and the levels of risk that it presents. and finally, we want to make absolutely certain that in terms of managing the threats, we still have as an end game, the use of data that is effective for the individuals, the services the need our information, with respect to health information used for the betterment of care delivery and health status of all of our members.

we learned three core elements that hopefully we get a chance to talk about with respect to the depth of q&a. number one, absolutely essential we target advancements and strengthening of our culture as a company. the culture is what i think it differentiates the winners from the losers in this state. because if you have a culture that is totally 100% committed to protecting every member, every customer, every citizen, you have a running head start against vulnerability. number two, collaboration. i want to talk more about this a little later, but what i have witnessed once our breach occurred, trying to engage with my peers in the industry, i detected a sense of competitiveness. a sense of competitiveness where you got breached, but we are ok. we do not need to share information. but what you are creating with

respect to your work in the commonwealth and the connectedness to the state is representative of the collaboration that is necessary to get traction and achieve greatness with respect to the controls that are necessary to protect our society. third, i want to make certain that we talk about commitment. commitment is absolutely essential with respect to resources. you mentioned resourcing as one of the core elements of your effort. i cannot tell you how many times i have heard that i have a budget problem, gee, i do not know i can get the type of commitment i need from a superior. and to your point about data, and data that we now monitor very carefully, every month we have 19 million hits that we would consider a threat. what is interesting is, now that we have on staff 250 individuals that are totally dedicated to nothing but managing the risk of

cyber attacks, we have many others, 55,000 employees, every one of those by way of training and the engagement that we expect of those individuals is monitoring their individual workspace. but the 250 individuals are looking carefully at the 19 million and then distills that down to close to 5000 hits that we believe are nefarious in nature. it does not sound like a lot, but it only takes one. we have distilled it down to 100 truly threats.e intrusion's that could create another breach on the scale that with.ed to begin so those three core elements really make up the difference with respect to whether you

succeed or fail in the world that we have come upon with respect to the threat that has been presented to us. what i would like to do is pause there and begin opening up for questions. host: why don't we go ahead and open it up for questions. >> thank you both for being here, we appreciate your window into this issue. certainly, as people -- even now resources are not being fully allocated, governors are paying more and more attention. , two questions, one, how did you change culture in your own organizations? we are in a similar situation to yours, a million situations, finding the time and space for that to happen. secondly, what places d.c. the states can provide you unique and critical support? ms. story: the interesting thing about changing the culture is, the great thing about being in

a water company is, our employees get the importance of what we do. even as a utilities company, eoplee in just what we -- p ingest what do we deliver. we are in some ways a health agency because of what we do. what we had to do was, at some point cyber security was considered an i.t. function. that is the biggest cultural issue. they think of the computer guys will take care of it. so what we had to do was show the number one, the weakest part of our company, will come through an employee who mistakenly clicks on something. so once we started communicating that, and i have to tell you, one thing we do once a month, we have the our physical cyber security. i.t. rate function from information every

month to every employee, we send something to see who will click on it. then we debrief. and another thing that came out of that, it may sound like a small thing, but i tell you, it is sometimes not the big things that have the impact. we would find something where my name would be in a.m. e-mail. letter r with an extra in the e-mail, and they would look on it. but every single e-mail from outside our company has a red banner right after the subject that says this e-mail is from external sources, make sure you know the sender before you click on anything. at first, our employees thought, what a waste, i have to read this before i read the e-mail? and as they said, why are we doing this? we found, from some of the fake issues they put up, it reduced 50% to after we started putting that header on anything that came from an external domain. it sounds like a small thing, but it is changing the culture. and what it did with our 6700 employees across the country,

they are thinking about it now. they are thinking, what should i do? and the helpdesk is getting more calls. another thing we are doing is, and i think this is important, we have had a chief information officer, and one question is, how do you deal with the big stuff and the little stuff? so wait for it our research, and under one, and r&d officer. and his whole role is integration of all the technology. it is operational technology, not just systems for e-mail, but the people running water treatment at the plant, connecting all of it together and saying, technology is not separate from our business anymore. it is not separate from your business. business. and, i think the cultural shift to getting people to understand, it is every single employee's job. cyber security is every single employee's job. we're not where we need to be, but we are continuing to put

that out there. mr. swedish: maybe i can go back to the successful driving force, leadership. they say three things, leadership, leadership, leadership. it is amazing, when i learned of the breach with my team, the realization was that we needed to send a very clear message to our 55,000 associates, the importance of what we ran up against, and they certainly appreciated it that they did not know what they did not know about its significance. we made a commitment to our associates to bring them on board so they were fully aware of our responsibility as a company, but also a commitment to our members so that we gave to them a sense of security, notwithstanding the breach occurred on our watch. we were going to take care of them. and we were going to take care of them with the kind of support

and security that at least gave them some he's of mind that in spite of the breach, that we would take care of their situation the matter what it might be. and in terms of how someone might use that data. let me say that, for our company, i immediately informed the board. they now hold us accountable routinely with respect to audit insights, regular reports with respect to management. are they managing the affairs in terms of security? internally, we now have a very educated, highly expert risk management process through an i.t. security officer. a security officer has been given tremendous amounts of responsibility and authority. not to only internally, but we

now encourage them to getting gauged on their areas levels of national policy engagement, state relationships, and other societies like you may have heard of. high trust is an organization we have been part of the since 2003. we have a variety of certifications and brought them on in terms of a total engagement to get the kind of routine inspections that are necessary for us to be assured we are actually protected as an organization. another company is assessing our performance on a routine basis. so we have multiple sources of certification that we are in fact secure. all that means is, our engagement in terms of having built a culture that is protecting our membership, because at the end of the day, we have incredibly sensitive, vital, personal health information. and the good news with respect

to the breach, no personal health information was really -- revealed. it was more a demographic, unfortunately, social security information, addresses and e-mails, but we were very blessed that it did not involve personal health information. notwithstanding that, we now have a culture in our company that is highly protective of data, and every associate is expected to be engaged and committed to securing the organization said that they are andtoring in their space also monitoring on a collective basis. so it is cultural. cultural. cultural and driven by leaders that get it, and are totally committed to the safety of information for our members. without that, you are literally treading water.

literally. treading water. ms. story: as to what we can do with the states. we have to start communicating between federal, state, local utilities, at least from the critical infrastructure i was talking about. but also key companies there that are part of this. simple things like having annexed or size once a year. a great trial run, hopefully we do not have this, but we found during natural result -- disaster recovery, we have learned how we are not talking to each other. after storm sandy in the northeast, we had plenty of fuel because 90% of our critical access that served water to 90% of our customers has backed up generation so that we can still have water and sanitation services. we had in but no way to store the fuel. some of the areas in new york

and new jersey needed fuels so we worked out a deal to provide them fuel if they would give us space to keep the fuel. the problem is we did that during the recovery. but it is built into our emergency plan. so each time these cyber incidents, the convergence between physical and cyber, do not necessarily have to have separate plans. emergency planning, there is a broad brush of that whether it is man-made or natural when you talk about critical assets. now, it is a little different when it is just the information system. i think the best thing is, we know each other, we share information with each other, and we make that a physical exercise one day a year. i think that is a best practice that we should be able to target and all of our states. >> first of all, i want to congratulate and thank governor mcauliffe for his leadership on this issue. as most of you know, our states, maryland and virginia's around the nation's capital, and we are home to most of the federal government's intelligence and

cyber assets. collectively we have about 1500 of the top private sector and private and are prizes and our two states. our little region there is, in my opinion, the cyber capital of america, if not the world. i want to thank you for your leadership. it has been fascinating. i think this is one of the most critically important discussions that we have had at this conference, something each of us needs to focus on. i just have a simple question, in implementing cyber security, efforts within your organizations, can you give specific examples of some of the internal resistance you may have come up against and how you were able to overcome it?

mr. swedish: fascinating question. and getting out of the gate, one of the most painful experiences i have had. in the sense of coming to the realization that people do not know what they do not know. that is a herculean effort, because you are starting with bare-bones basics of getting information out and getting people on board. and you realize you have to establish educational models that get folks on board and develop that sense of responsibility. number two, there is a resistance to transparency. it is interesting, when the breach occurred for us, how many folks said we have time, we do not need to go to market. we just have to figure this out. let us run it out as long as we

can. contrary to that, i call it human nature, wanting to slow walk it. within the boundaries of regulation, do not get me wrong, we made the decision to get to market faster and get the message out to our 40 million members by both e-mail as well as first-class mail in order to inform them of the breach. so transparency is something you have to deal with, and overcome the personal sense of threat that people have that it exposes that they do not know what they do not know. and the last thing is, the budgetary considerations, which is, i do not have the dollars or the support -- whatever i do not have, and therefore i cannot. it is that old saying, if you say you can't, then you won't. i think the final piece of the puzzle, leadership has to project a commanding presence

that this is not going to be business as usual. the realization whether it is me as a ceo or anyone of my executive leaders, every individual lives in the shadow of a leader. and from that point forward after that breach, people know that, literally job one for me to protect the company necessitates my commitment to protecting information. living in the shadow of the and date today one experience i now appreciate. ms. story: i will start with the biggest one, it is really

widespread. let's say we are doing and it -- exercise, and we're going to watch how you respond and then follow up with best practices to say, where did we screw up? culturally, that is really important that we deal with this. set expectations upfront. we do not expect you to be perfect. and as we do these exercises, i have said at the state and federal level, we need a safe place to say,we may not do everything, but if we support each other for best practices and just -- do not go through the motions, but try to find out where we have weaknesses. and that is all the way from the bottom of the organization to the highest levels. another interesting thing, the general population of employees did not like having the extra verbiage on their e-mails. but you also have a here in information technology group and that is their bailiwick, it is everyone's responsibility.

it takes getting used to. as leaders, we have to set the tone for cyber to say, none of us are where we need to be. none of us are perfect, we are going to mess up. so i tell you what. we will see where we mess up the worst, and together figure out a way to make it right. but if we go through the joint exercises within a company or across agencies, and we do not go in saying, we are not going to be perfect and it is ok and we are not going to bad mouth or say they do not know what they are doing, it may sound like a small thing, but i worry that is the thing that could trip up a set of effective exercises. >> you talk about resources, what are you spending annually on protecting herself with cyber security? mr. swedish: year one, post-breach was $100 million plus, to get us up to a standard that we felt was necessary to meet the threat.

onward, looking to the future, we now budget $50 million a year, specific to enhanced technologies. quite frankly, that does not count people. costis literally hard capital deployment in order to embed new technologies. very quickly, it is fascinating, obviously i have come -- become a little more educated. i have gotten to the point were i know what i do not know. but what i am learning is, it is amazing how predictive analytics has a such a substantial role in proactively looking forward and helping us model what the risk levels may look like so we are getting ahead of the game. and i think that is the next level of investment for us, to get more deeply engaged in predictive analytics as opposed to more reactive, waiting for

something to happen. that is a simplistic way of putting it, but really predicting what the future may look like based on solid data that then gets us to the future faster than we would otherwise. i think it is very helpful. ms. story: i think that is a great point. because all of us in corporations, most of us have management maps where executives say, what are the biggest risks to our corporation? -- or past, cyber order technology was listed as one of eight or 10. now it is part of every one of our identified risks. we do not make it public, but we are integrating it into every single risk. joe is exactly right. the use of predictive analytics to say, how will this affect the business? or for you governor, how it will affect the agency. there may not seem to be interconnection, but they do have it. services.ms or

where are these interconnections? s can helpanalytic you say, this one breach may affect 20 agencies where you're thinking maybe it is one or two. so i absolutely agree, it is a very powerful tool. i think we just started scratching the surface of what predictive analytics can do. >> it you know, if i can get back to the core, basic way of running the shop. did we experience may be resistance or angst about our efforts? it is interesting because now as ceo i am subjected to this lockout, locked out of the system. and, you cannot imagine how much anxiety that created, but we now have by way of data analysis teams, they monitor all lockout. and when an executive or anybody is locked out of the system,

they immediately consider that a threat. they go to that executive and walk them through what happened, why it happened, and so it is another heavy lift. but the necessity to effectively manage real-time what is happening to your system. ms. story: it happens a lot, you change your passwords and you may forget your password, and get locked out. i understand. it is a pain. >> questions? governor mccrory? governor branstad? >> what are we going to do about the talent shortage, supply and demand, how will we afford it? by the way, in government -- you and the private sector steel all of my talent. it is a heck of a problem. what are some things you are doing for the talent now on the talent long-term? >> let me just say it. pat is right on point with this,

we had a meeting, they cannot get folks to work the federal government. we had a meeting the other day drg and we have a problem with the state government. because the private sector will pay three or four times more. >> and when we do get them, i am governor of north carolina, they are taken from us very quickly. one of the best ways and i.t. to move up is to move out. and it is a huge challenge. it has been that way for 25 years now. -- i worked with the southern company a lot so i am just curious what you are doing as far as talent recruitment and retention. ms. story: typically, that means what you're doing with i.t. talent. and i will go back to -- and i hate to be a broken record, but for us, critical infrastructure, it is not just the people and i.t.

manye seeing just as challenges with our skilled, blue-collar workers, the technical professionals. because now instead of turning knobs in a water treatment plant, they have 12 screens where they are monitoring the levels of everything, the water quality, everything that is in it. the majority of them do not have college degrees. so one of the things we're doing is partnering with state and community colleges, stay -- state technical colleges. and we will talk about that later because it does not get talked about a lot. you know, they have done some studies about the skill sets required coming out of high school for a college freshman or someone walking straight into these skilled technical jobs. these front-line jobs. do you know the immediate needs are greater for someone coming out trying to get one of these jobs than a college freshman? the math, the computers, everything around it is critical. for us it is multi-pronged. the first is to get these skilled professionals. we also partner with national labor unions. we have 18 different labor

unions represented across the united states. some of them have excellent training. so rather than re-create the training, we are working with inm to especially try to go to communities that are underserved, that have young people who have learned the skill, that we can bring them in, and that has been very effective for us. so that is that group. then, in terms of the i.t., we are fortunate because the millennials that are coming up, there is a new name for the ones behind them, but they want to do something that matters to the world. they want to have security. one thing that will help state and federal governments and utilities, many wondered what would happen when their parents lost their jobs during the financial crisis. it is amazing to me how many 24-year-olds and 25-year-olds say they want a stable job.

stability is not what it was when it was our age, to them it is five to 10 years. but you need to have the ability whether you are federal, state or utility. we have to appeal to the altruism that so many of these young people have. we are getting so many recruits because they want to be part of water. they love that they will do something that makes a difference. so the more we can talk about that -- now that is not everything, but if you combine stable, retirement benefits, even though they are not what they used to be, they are better than what many competitive companies can offer, along with making a difference, we are finding, at least for us, that it is being successful. mr. swedish: i will add a quick comment. to piggyback what susan just said. we now have every year over 20 interns that we employ working with respect to going up in their career, and we put them on a variety of special assignments.

but we are constantly trying to evaluate where we can get talent. i cannot go so far as to say it is an achilles heel as far as finding the right talent, but we have a responsibility to train and give folks a career path in this profession that allows our organization to be protected in terms of finding the right talent at the right place at the right time. >> when it comes to cyber security and critical infrastructure, what is the regulatory role of the states, and should we be working to implement regulations and laws, to incentivize compliance with best practices? ms. story: we have regulated operations in 16 states, which means we are regulated by public utility commissions. in new jersey for example, earlier this year, they set up a requirement for all utilities and a framework of what would be required to ensure every utility had that framework in place, and

there was no pushback. not to the point of, i do not think government can define specifically what everyone needs to do. but a broad framework of expectations, a broad framework of, this happens and here is what we expect. i think that dialogue is healthy and constructive and we welcome it. >> speaking from my industry's perspective, we have so many regulations that are laid on us by so many external forces, hipaa, crediting bodies, high -- dealing with other accrediting bodies, high trust is another example. i can distill it down to the states, and that is unify and standardize. anything you can do to help us build that unification that is necessary in and amongst states

would be critically important. i can point you to a ton of regulations, but somehow, we all have to -- getting back to my term earlier, we have to collaborate, work together so that the cultural connectivity occurs amongst all the parties that are involved in this. and so again, unification, standardization. maybe not so much regulation. >> there is a commission on uniform state laws. is this something you think would make sense to go for that group? i know they try to recommend certain areas where they want uniformity. i know in insurance regulation, although it is straight state-regulated, we try to be as uniform as possible across the country, just for the facilitation of the industry. mr. swedish: following our imagine, weou can were front and center with every insurance commissioner,

intensely, and multiple times. probably difficult for me to characterize it because it is a constant work in progress. andto me it was amazing very uplifting how much conductivity there was among insurance commissioners. withndividually working theeach, i had a sense of spirit of unification and collaboration that really benefited us and i think will be a major asset for us going forward. >> that is good news, i will let my insurance commissioner know that. you.tory: thank from a utility standpoint it is different, as long as federal and state do not conflict, because we have different regulatory constructs in every state, no two are the same, so for us it is a long environmental requirements.

so we are with some customization because we have state precedent. we get in trouble when at the epa tells us one thing in the state tells us something else. so something like that, that is mostly what we are concerned about. >> let's give joe and susan a big round of applause for this great panel here, folks. [applause] >> in front of you you have a brochure, i would ask you to take the brochure. why don't you take this and recruit businesses to be safer in your states? my point, we are only good if all 50 states are doing this. you can backdoor any state to get to any other state. you want to get to our anthem folks, you can go to some state that has it and get to us. so, this truly is the role of a national governors association. 50 states, all going the same direction.

i noticed governor branstad was looking. that is a portable phone charger you get to take with you. you can use it if your phone gets run down. now that we are closing the we can come want to say in conclusion, what a memorable weekend we have had from the historic state capitol, the root beer floats, the fireworks, the world food prize, and what a better way to end this conference, going to the greatest fair in the history of mankind, the iowa state fair tonight. let's give our great governors, a round of applause for doing that. [applause] >> this would not have happened without the hosts who really stepped up to the plate. these are hard deals to put together. and, we got most of our host sponsors out there. let's give our host sponsors a

great round of applause, if we could. [applause] >> finally, i want to thank our nga corporate fellows on behalf of all of the nation's governors. we could not do what we do [applause] last thing i would say is that tomorrow, we encourage everyone to stop by at the marriott so you can help package some meals to help people out. this event will happen from 8:30 a.m. until 10:30 a.m. it would be greatly appreciated. callingtimes sake, i am the meeting closed. but gary, you are next to mike myel so give -- next to gavel so could you give it a rap for me? >> if you want one of the

booklets highlighting the successes of the states, contact scott and his people. innovative things are happening in the states. we will have them online in perpetuity so you can access those. you can contact scott and the nga to have access to those. and with that, hit the gavel. >> the meeting is adjourned everyone. thank you. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org]

>> now, republican convention digital director samantha osbourne talks about the technology being used at the 2016 convention including a new cap and -- app and snapchat. >> the way people are consuming

media is changing. we have to adapt. it is exciting how we are integrating technology into the convention. to do that or we will not get the content of our message out. --are making sure that there they are in constant operation. we are trying to to create operation -- opportunities. we are making sure there is a content operation to tell the stories around the convention that are outside the speeches and the balloons. we are trying to create an opportunity to capture content. live stream and 360 live. and integrating facebook, twitter and google. the app is going to help bring information about the proceedings in the palm of your hand in terms of the schedule, speaker bios and live stream as well.

and will have experience for the folks that are coming to cleveland. information about transportation. and information about around cleveland. we are very excited and from being at home to being here. it gives you more access. it's all about access. more than your tv screen. more than being in your seat to watch it. it makes everything is connected and will really improve the experience and improve the engagement. we are going to be using a platform that is integrated into our content plan and reach voters there and a unique insight into the convention. facebook is going to have -- helping with giving back stage.

we are excited about that. twitter will be helping with that content selection but they will have a seat on media row. and we have google our live stream video provider and see the live stream on youtube channel and they also have a build out. not just a physical presence. she is our little mascot and we campaigned around her. you have seen some of the things. we have been sharing it with the delegations and sharing it online as well and encourage everyone to look out for her and we will be do a lot more. we are working hard and actually

[indiscernible] >> we are appreciative, it takes a lot of work. i imagine i'm going to be running around everywhere. and our content teams are going to capture content from the delegates and events going around the convention. we will be have teams supporting our live streaming and videos are caught. and they are archived after they are completed. it is making sure that everything is amplified. the conclusion of the program for each evening. we are bringing the convention online. we are trying to create opportunities for people to engage at the convention just beyond the speeches. it's very exciting and we are going in a good direction and you will be engaging.

>> the hard-fought 2016 primary season is over. with historic conventions to follow this summer. >> colorado, ohio. delegates-span as the consider at the conventions. and the first non-politician in several decades. live on c-span, listen on the c-span radio app or get video on demand. you have a front row seat to every minute of both conventions on c-span, all beginning on monday. in new york city, republican presidential candidate donald trump had his first joint campaign appearance with indiana governor mike and his, his vice

presidential running mate. he is scheduled to become the formal republican nominee next atk in cute -- in cleveland the republican convention. [applause] mr. trump: thank you, everybody. great honor. great honor. thank you. this is a wonderful day. >> trump, trump, trump, trump -- mr. trump: on a saturday morning. isn't that nice? thank you. we are going to have an incredible convention. we will get things solved and do lots of wonderful things for our country, most importantly.

i am here today to introduce the man who will be my partner in this campaign, and the white house, to fix our rigged system. we are in a rigged, rigged system, and to make america safe again, and to make america great again. [applause] mr. trump: i want to also address the islamic terror attack in france. we have witnessed horror beyond belief. no matter where you look, and now it is happening more and more. and it is never going to stop. we need new leadership. we need new thinking. we need strength. we need, in our country, law and order. and if i am elected president, that will happen. [applause]

mr. trump: i want to express our unyielding support for the people of france. we mourn their loss as a nation. as far as turkey is concerned, so many friends in turkey, great people, amazing people. we wish them well. it looks like they are resolving the difficulty, but we wish them well. a lot of anguish last night, but hopefully, it will all work out. now as, hopefully, as the next president of the united states, i want to refer back to what has happened over the years. the middle east today is more unstable than ever before. it has never been like this -- out of control. after four years of clinton, who really led the way and led obama down a horrible path, as i do not even think he could have made these decisions so badly,

she led him right down a horrible pass. he did not know what he was doing. iraq, syria, all into chaos. and iran is on a path to nuclear weapons. and on top of that, we gave them back $150 billion and we did not get our hostages until the end. now we are seeing unrest in turkey, a further demonstration of the failures of obama-clinton. you just have to look. every single thing they touched has turned to horrible, horrible, death-defying problems. we also need to bring back, in this country, as we see what happened, our industry, our manufacturing, our jobs. they have been taken away like we are babies, taken away. we are going to bring them back. i have found the leader who will help us deliver a safe society and a prosperous, really prosperous society for all of america.

indiana governor mike pence was my first choice. i have admired the work he has done, especially in the state of indiana. and i am going to go over some of those accomplishments in just a minute. but i also admire the fact that he fights for the people, and he is going to fight for you. he is a solid, solid person. [applause] mr. trump: governor pence served indiana with distinction in congress. he rose to leadership and served as the chairman of the entire house republican conference, number one. he has really got the skills of a highly talented executive, leading the state of indiana to jobs, growth, and opportunity in

spite of the relentless obstacles put in his way and every state's way by the obama administration. it is horrible out there. high taxes and regulations. it is out of control. mike pence is a man of honor, character, and honesty. we know that. hillary clinton is the embodiment of corruption. she is a corrupt person. what she has done with her e-mails, what she has done with so many things, and i see the ads up all of the time. she is totally bought and paid for by wall street, the special interests, and the lobbyists, 100%. she is crooked hillary. [applause] mr. trump: and i think, that while she got away with murder, in fact i think it might be her greatest accomplishment,

escaping the recent scandal and her lies and the loss of 33,000 e-mails. but it wasn't a loss. that in itself is a major crime. other people have been paying tremendous prices for what they have done, which is peanuts compared to what happened with hillary clinton. 33,000 e-mails are missing, and that is ok? didn't give them to the fbi? didn't give them to the attorney general, and that is ok? wipes her server clean, that's ok? these are crimes. these are crimes. and how she got away with it, i think i understand it, but i think a lot of people don't. but i do believe, she did not pay the price she should have paid, she is going to pay that price when november 8 rolls around.

she is going to pay it at the polls. i believe it. [applause] mr. trump: on top of everything else, hillary made $21.6 million giving speeches to special interests in a short period of time. she is totally owned by wall street. we believe in americanism. she believes in globalism, and it's not that she believes in it. the people that give her all of this money believes in it, and she will believe whatever they want her to believe. believe me. that is it. [applause] mr. trump: what a difference between crooked hillary clinton and mike pence. [applause] mr. trump: mike pence will never be afraid to speak the name of our enemy, radical islam,

radical islamic terrorism. you saw it the other day with the truck, screaming out the window. you heard what he was screaming out the window. you saw it in san bernardino. you saw it at the world trade center. you saw it in orlando -- how horrible was that? you saw it in paris. you see it all over. and hillary is a weak person. we are the law and order candidates, and with the law and order party, we are going to change things around. there is going to be respect again for law and order. [applause] mr. trump: hillary clinton's foreign policy helped launch isis. i see the ads she puts on. if i make one statement -- which is fine -- she will take that

statement and put on a totally dishonest -- because she has a lot of money, because it is given to her by the lobbyists and the special interest. but i see the ads on foreign policy, she is talking about donald trump does not have foreign-policy experience. of course not. i have been a very, very successful business person, but if you look at my calls, i said do not go into iraq. nobody cared because i was a business person, a civilian. take the oil -- many calls i have made. i said that in scotland and in the u.k., that was going to happen. i was the one that predicted it. and everybody said, he is wrong. he is wrong. president obama said, if that happens, they will get to the back of the line, which is probably why they lost. of course, i consider it a win. i consider it a win for them, actually, because they do not want to be told what to do. and they do not want to be told, when people pour into the country, to have to take them even if they are not qualified,

even if they do not have paperwork, even if they have no idea where they come from. i said that brexit is going to happen, i said they are going to break away, and everybody laughed at me. the odds were 20%. then when it happened, she took an ad, saying, oh, donald trump said this or that, but i am the one who said that was going to happen. some of the more fair reporters, about 30% of them, said he was right. i appreciate that. 70% did not, but i will be ok. so mike pence will never be afraid to speak the name of our enemy -- so important. now i think, if you look at one of the big reasons that i chose mike, and one of the reasons is part of unity, i have to be honest. so many people have said "party unity," because i am an outsider. i want to be an outsider. i think that is one of the

reasons i won in a landslide. i won in a landslide. this was not close. this was not close. [applause] mr. trump: this was not close. the history of the republican party, with 17 people running, you have to understand, other people ran against 1, 2, and 3, with 17, we got -- i say "we" because i am a messenger -- we got almost 14 million votes, more than any other person in the history of the republican party and the primary system running for president. think of it. that is more than ronald reagan, who we love. that is more than more than richard nixon, more than dwight d. eisenhower. you know, he won the second world war, in all fairness. more than the bushes, but i mean by a lot. but that is with 17 people.

that means our message is unbelievable. i want to thank all of the loyal people, because i have such loyal, unbelievable people, and they displayed that just yesterday in cleveland, where what is going to be so amazing. but they displayed it. it was on display, where we had this group of people, many of whom i have known, and i will not say because for party unity, i will say they are wonderful people. "never trump." they said. "never trump." "never trump." they got crushed, and they got crushed immediately, because people want what we are saying to happen. they are tired of a country that has horrible trade deals, that has no borders, that has taxes that are through the roof -- highest taxed nation, just about, in the world -- that has regulations that do not allow you to start a business and destroy your business if you do start.

by the way, speaking of destroying businesses, we are going to take care of the miners and the steelworkers. we are going to put them back to work. [applause] mr. trump: so they are tired of it. but i want to thank all of those people, the delegates on the different committees because boy, was that something? unfortunately, the vote was very late, but essentially we had 112 -- this was the vote that was going to put it on the floor and we would have a big fight --we are not going to have a fight. people agree. they want the wall, they want the borders, they want these things to happen. [applause] mr. trump: and what we are doing that i'm so proud of, and nobody else would even think about doing, i have fought very hard for it. we will call it the "johnson amendment," where he took away from the evangelicals -- and i want to thank the evangelicals,

because without the evangelicals, i could not have won this nomination. the evangelicals have been unbelievable. i dominated with the evangelicals. a lot of people were surprised. they say he is not perfect, but you know what? they know i'm going to get the job done, and they are really smart. [applause] mr. trump: and i said, for the evangelicals, that we are going to do something that nobody has even tried to do. you have the johnson amendment passed by lyndon johnson and his group. he was a powerful president who knew how to get things done. he got bogged down in a war that destroyed him. but he was a powerful president, and we call it the johnson amendment. where you are absolutely shunned if you are evangelical, if you want to talk religion, you lose your tax-exempt status. we put, into the platform, we are going to get rid of that horrible johnson amendment.

[applause] mr. trump: we are going to let evangelicals, we are going to let christians and jews and people of religion talk without being afraid to talk. i saw this -- i had so many great leaders, so many times, up to my office. the absolute top evangelical leaders, christian leaders, jewish leaders. believe it or not, some muslim leaders. people are going to be surprised to hear that. i had the top leaders up to my office and i said, why is it that you are so powerful as an individual, and yet, when you get out there, you are sort of timid? they did not know how to answer the question. it took two or three meetings before i figured it out. one great, great gentleman that everybody knows, but whose name i will not reveal, said, mr. trump, we live in fear in our churches and synagogues. we live in fear that we are

going to lose our tax-exempt status if we say anything that is even slightly political. and i looked out the window, i was in trump tower, and pointed to people walking down the street. i said, they have the right to speak, and you don't. that means they are more powerful than you are. we need to do something about it. how did it start? how did it start? and they said it started because of lyndon johnson. and he actually had a problem in texas with a certain religious leader and he did this and got it done, and we are going to undo it, so that religious leaders in this country, and those unbelievable people -- and not because they backed me in such large numbers -- but so that religion can again have a voice. because religion's voice has been taken away, and we are going to change that. [applause] mr. trump: all right. back to mike pence.

so, one of the primary reasons i chose mike was, i looked at indiana -- and i won indiana big. remember, indiana was going to be the firewall -- that is where trump was going down. the agreed i would win pennsylvania and new york and all these places. but indiana was going to be the firewall, so i got to study indiana and i got to study new york and a lot of other places, and i saw how nafta, signed by bill clinton, has drained our manufacturing jobs. drained us like we have never been drained before. nafta, again, signed by bill clinton. nafta is the worst economic deal in the history of our country. manufacturing down in some states 65%. it is a horror show. moving to mexico, moving to other places. i have a friend who is a great builder. what he builds his plans. he does not build buildings, he builds plans, the biggest in the

world from what i hear. i said, how is business? i was with him the other day. how is business? he goes, unbelievable. i said really, wow, i am surprised. why is it unbelievable? because i think of him as building in this country. he said, donald, what we are doing in mexico, you will never believe. he said we are building plants in mexico the likes of which we have never seen. i said what about this country? "not much," that was the expression. he said exactly that. "not much." i said but mexico? he said, you have never seen anything like it. it is incredible. folks, that is going to stop. we are going to reverse it. we are going to bring our jobs back to our country. we cannot be with stupid people anymore. and he was better than a

pollster, better than a consultant to i would say how are we doing, and you get a report that costs you millions of dollars. that does not cost me millions. me, i give them $10,000. [laughter] mr. trump: for other people, millions. it costs other campaigns million. a guy like this is better than anybody you can hire to do a report, and he did not say it from the standpoint of he is upset about it, just fact. "how are we doing?" "unbelievable in mexico." in fact, he actually said "i have never seen anything like it." and if you look, ford is building massive plants there instead of in michigan. and we want them to build in michigan. and you know that i know how to do that, so easy. so easy. but they are not going to do and they are not going to take advantage of us without retribution. there are consequences when you fire thousands of people and move to another country and think you are going to make your product and sell in here. there are consequences.

and those consequences are going to keep companies in our country. everybody knows what the consequences are, but i will not say that because i am much more interested right now in mike. indiana's unemployment rate --and this was the primary reason i wanted mike, other than he looks very good, other than he has an incredible family, incredible wife and family -- karen is amazing. [applause] mr. trump: incredible family. highly respected. expected to go for another four years. he would have a won, i think, very easily in indiana. indiana, their unemployment rate has fallen, when he was there, when he started, 8.4% when he was governor to less than 5% in may of 2016. since january 2013, indiana's labor force has increased by more than 186,000 jobs.

you have to understand. i have gone around to all of these things. to all of them. every time i have statisticians, i say give me the stats on this state, and it is always bad. down, down, down. down 40%, 50%, 60% in some cases. here's somebody where it has gone up. private-sector job growth is up by more than 147,000 jobs since 2013. that is, like, very unusual. governor pence balanced the budget. can you imagine a balanced budget? our budget is so out of whack. he balanced the budget. they do not know what that means. governor pence balanced the budget, produced a surplus, and maintains a $2 billion reserve fund. it is also rated aaa, their bonds.

aaa. very few states have that, aaa. the best. that is as good as you can get, whether you are a company or a state. aaa. indiana was recently recognized by "chief executive" magazine as the number one state in the midwest for business, number one. and it is not even close. there are approximately 34,000 fewer hoosiers on unemployment insurance now than there were when mike pence took office. so you have fewer hoosiers, fewer people from indiana. besides that, bobby knight, my friend, who really did help me. if you want a reference, bobby knight in indiana, we love bobby knight. he agrees with everything i am saying. he loves the governor.

indiana has the second lowest unemployment rate in the nation for veterans, where nobody is fighting for the veterans like i am fighting for the veterans. the veterans have been left behind. [applause] mr. trump: if you remember a few months ago, hillary clinton said really, they are doing much better, the v.a. is doing much better. they are doing a much better job than people give it credit for. people are dying in line, waiting five or six days for doctors. they cannot even see a doctor. it is a scandal. take a look at what is happening with the v.a. in arizona. just the veterans administration, it is a scandal. it is corrupt, it is incompetent, it is a scandal. and hillary clinton thought it was just fine. and, boy, am i going to win big with the veterans. we know that for a fact. [applause] mr. trump: so it is now 2.4% for veterans, in 2013 when mike pence took office, the rate for

veterans was 6.7%. it was first in the nation, one of the bad ones. now it is the best. got them jobs. indianapolis is ranked second in top 10 metro areas for young college graduates. that is a great thing. they will stay there. that is a great thing. and mike worked hard on that. he was telling me that was not easy. under governor pence's leadership, indiana enacted the biggest k-12 funding increase in history. so you are balancing the budget and giving more money to education. isn't that a great thing? [applause] mr. trump: indiana has just about the largest school choice program in america. school choice is where it is at. if you want to get your schools better, you have got to get rid of common core, fast. governor pence enacted the largest income tax cut in the state's history. think about that. cutting taxes and balancing the

budget. and along with corporate tax reform, just about number one in the country. cnbc ranked indiana first in the nation for its infrastructure. so with all of these cuts and all of these balancing budgets, we are spending more money on education and infrastructure is kept up. that had so much -- look, as a builder, nobody in the history of this country has ever known so much about infrastructure as donald trump. i build infrastructure. do i know how to build a wall? do i know how to build infrastructure. it is very interesting. we are building -- i won -- which is amazing in the obama administration -- i won the right to have the old post office building on pennsylvania avenue, right by the white house. it is amazing, probably the best location, one of the most sought after projects by the gsa

general service. i like what is going to happen. ivanka and eric and don did a great job on it. and we are going to have an opening very soon. i thought the other day i was going over the numbers, we are under budget and about a year, actually more than a year, we are a year ahead of schedule and under budget substantially, and the quality of the work is even better than we were originally going to do. [applause] mr. trump: when i explained to a government representative that we are under budget and ahead of schedule, they almost fell off, because they have never heard those words before. so when i see what happened to indiana, which was having tremendous problems, when i see what happened to indiana under mike's work, and his predecessor did a great job, by the way, who is now at purdue, who is now

purdue, when i see what happened with respect to the numbers, the state, and everything else, that, to me, was probably the single most important one. because it is something that has not happened, almost has not happened, in this whole country. the turnaround and strength of indiana has been incredible, and i learned that when i campaigned there, and i learned that when i won that state in a landslide, and i learned that when governor pence, under tremendous pressure from establishment people, endorsed somebody else -- but it was more of an endorsement for me, if you remember. he talked about trump, and then he talked about ted -- who is a good guy, by the way, who is going to be speaking at the convention -- ted cruz, good guy. but he talked about ted and then drop, and then back to ted. so who did he endorse?

so even though he was under pressure, someone outside of the establishment, it was the single greatest non-endorsement i have ever had. [applause] mr. trump: so with that, i would like to introduce a man who i truly believe will be outstanding in every way and will be the next vice president of the united states. governor mike pence. thank you. thank you, everybody. thank you. [applause] gov. pence: on behalf of my family, here and looking on, would you join me in thanking

donald trump, melania, and his entire family for the sacrifices that they are making to make america great again? [applause] [cheers] gov. pence: and i thank donald trump, for the confidence you have placed in us, and i accept your invitation to run and serve as vice president of the united states of america. [applause] gov. pence: i come to this moment deeply humbled but with a grateful heart. grateful to god for his amazing grace. grateful to my wonderful wife, karen, and our three incredible kids, michael, charlotte, and audrey. and grateful to those builder,

this fighter, this patriotic american who has set aside a legendary career in business to build a stronger america. donald j. trump. [applause] gov. pence: and let me say, having had the privilege to spend time with this man and his family out of the limelight, i know what all of america will soon know even better. these are good people. donald trump is a good man, and he will make a great president of the united states of america. [applause] gov. pence: donald trump understands the frustrations and the hopes of the american people like no leader since ronald reagan. the american people are tired. we are tired of being told. we are tired of being told that

this is as good as it gets. we are tired of having politicians, in both parties in washington, d.c., tell us "we will get to those problems tomorrow." as ronald reagan said, we are tired of being told that a little intellectual elite in a far distant capital can plan our lives better for us than we can plan them ourselves. donald trump gets it, and he understands the american people. [applause] gov. pence: i truly am deeply humbled to be at his side today. when i got this call last wednesday, i could only think of that ancient question. "who am i, the lord?" and who is my family, that you have brought us this far? let me try and answer that question for a few minutes. the people who know me well know i am a pretty basic guy. i am a christian, a

conservative, and a republican, in that order. [applause] gov. pence: while i am currently -- i currently have the privilege of serving the state that i love, i am really just a small town boy who grew up in southern indiana with a big family and a cornfield in the backyard. like donald trump, my grandfather immigrated to this country, and in many ways, i grew up with a front row seat to the american dream. i watched my mom and dad build everything that matters -- a family, business, and a good name. the heroes of my youth were john f. kennedy and the reverend dr. martin luther king jr. i actually started politics in the other party. but when i came of age, i was inspired by the ideals and the eloquence of our 40th president, and i became a republican. the most important thing in my life is that, 31 years ago, i married the girl of my dream,

karen pence, who will make a great second lady of the united states of america. [applause] gov. pence: and while this office is an extraordinary office to which to aspire, the highest role i will ever play is "d, a, d." i am a proud father of the college student, a graduate turned writer, and a united states marine. [cheers] [applause] gov. pence: you know, my career, i ran for congress before the republican revolution led by newt gingrich in 1994. i was not successful. by the time i was elected to washington, d.c., sometimes i

felt i was elected when it was over. from my first day in congress, i was battling the big spenders whether opposing no child left behind, the prescription entitlement, the wall street bailout -- i've fought every single day for taxpayers and fiscal responsibility when i was a member of the congress of the united states. after the republicans lost the congress in 2006, i was unanimously elected to serve in leadership and we fought back against the nancy pelosi congress, we opposed their tax increases and i was part of the team that won the congress back from democratic control in 2010. all of that happened before i went back home again. to indiana. answerwant to say that i this call for two reasons.

first because i know from first-hand experience that strong republican leadership can bring about real change. just like we have seen in the hoosier state. secondly, because hillary must never become president of the united states of america. now, on the first point, i know what i am talking about. in indiana, we prove every day that you can build a growing economy on a balanced budget, low taxes, all making record investments in education and infrastructure. we like to say that indiana is a state that works, and it does.

indiana works because republican principles were in you put them into practice. we have a $2 billion surplus and the highest credit rating in the country. hoosier businesses large and netl have created 150,000 new jobs. we have more hoosiers going to 200 yearthan in the history of the great state of indiana. let me say from my heart, that is what the no-nonsense leadership of donald j trump will bring to washington, d.c.. elections are about choices. and i also joined this ticket because the choice could not be more clear, and the stakes could not be more higher. americans can choose a leader who will fight to make america

safe and prosperous again and or we can change elect someone who literally personifies the failed a stab at schmidt in washington, d.c. -- the failed establishment in washington, d.c. weekendd clinton have kened our role in the world. in turkeyted coup all a test to a world spinning a part. weaknesseaches us that are rows is evil. hillary clinton and barack obama's foreign-policy of leading from behind, moving red a resurgent russia and the rise of isis is a testament

to the truth of history and we must bring a change to america's stance in the world. [applause] four more years apologizing to our enemies and apologizing to our friends. trump world stage, donald will lead from strength, he will rebuild the arsenal of democracy, stand with our allies and hunt down and destroy the enemies of our freedom. [applause] home, the choice is just as clear. for donald trump wants to cut taxes and hillary clinton plans to raise them on working that -- working businesses, and small firms. donald trump is committed to repealing obama care lock stock and barrel.

looks atlinton obamacare as a good start and wants to take bernie sanders' path down to socialized medicine. onald trump will end the war cold. promised anton energy plan that would close american coal mines and put coal miners out of work. donald trump wants to build a temporarily suspend immigration from countries compromised by terrorism. ignore clinton plans to the supreme court, reimposed executive amnesty and would increase our refugee program by more than 500%. where donald trump will appoint justices like the late justice scalia that will uphold our constitution, hillary clinton will appoint supreme court justices who will abandon the

sanctity of life and rewrite our second amendment. american that shares our convictions, i share to you -- join us. sake of sake -- for the a supreme court that will never turn its back on our god-given liberties, let us come together as a party and a people and a movement to make a minute -- thatca great again and day begins when donald trump becomes the 45th president of the united states of america. thank you for the honor. thank you for your support. and god bless the united states of america. [applause] [cheers] ♪

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>> next, live, your calls and comments on washington journal. and then newsmakers with kelly ward. after that, president obama and vice president biden take part in the memorial service for the slain dallas police officer's. s. kind of a rough upbringing. i was involved on the streets with my friends. i started selling drugs including marijuana, cocaine and then crack cocaine came out and we started to sell that. i was on the streets from the age of 13 until 18. q&a, the author discusses his new book.

he talks about his former life as a drug dealer and is a police officer. >> i criticized police a lot. there is a small percentage of bad police. the overwhelming majority are doing their job. are the ericabout gardner cases and the bad cops. starts tonforcement weed them out, because every time you see one of these cases, you look at the person's background and you see their complaints, the guy was a mess. we do not find out about that until they kill someone. at 8:00 p.m. -- eastern on c-span's q&a. >> this morning, we will look at the preparations for the republican national convention which will open tomorrow in cleveland. we speak with the editor of wk

su radio. as always, we will take your calls and you can join the conversation on face that ♪ good morning from cleveland, it is sunday, july 17. we begin our coverage on the republican convention. the last time the gop gathered here for their convention was 1936. 50,000 visitors are expected to descend on the city. thousands of delegates, 15,000 credentialed media outlets. the washington journal and c-span will be her through the week, giving you the opportunity to watch the nominating process unfold