were going to bend, break, and come back. >> woodruff: earlier this week, republican governor mitch danielshdrew his support for a bill that would have severely weakened private sector unions. even so, the democratic side of the state legislature, still remained empty. after daniels received criticism from some republicans for caving, he amped up his rhetoric. >> you don't walk off the job, take your public paycheck with you and attempt to bring the whole process to a screeching halt. >> woodruff: in washington today, president obama sat down with a number of democratic governors, who later commented on the government versus union battles across the nation. >> whatever wisconsin or these other states can do to get back into the game of creating jobs instead of fighting or belittling their public employees i think is a good step. >> woodruff: the governors will remain in washington through the weekend. and joining us now to discuss the current disputes over public employees and fiscal challenges sweeping the states, republican governor mitch daniels of indiana and democratic governor brian s

mitch daniels of indiana is being celebrated for turning deficits in surpluses and adding jobs and some are saying he should be the republican nominee for president next year. governor daniels joins us now. welcome back to "fox news sunday." >> thank you, chris. >> chris: and what is going on there is you just had rotator cuff surgery and you will not be ready for spring training. >> ju are in thtrain. >> you are in the middle of a stand offy house democrats. they first said that they were fighting against the right to work law which is now dead and now they say they are fighting against 1 othe 11 other bills e agenda. are you prepared to make a deal to get the house democrats back to indiana. >> no, if they come back we will talk about the changes or amendments they might want. while they are sub verting the democratic process there is nothing to talk about. when they come back to work we will talk about their concerns. you describe is quite accurately. it is different than wisconsin. this is not about government unions. this was a bill that i did not initiate and i thought ought to wa

governor mitch daniels did something like this in 2005 by executive order. and you know, we feel that, you know, through the legislative process has more transparency and accountability so voters can weigh in. and that is what we see right now in madison. but we do have an open and honest hearing being it. >> woodruff: is that what the afc and other unions are most concerned about, randi weingarten. >> yes, judy. the bottom line here is taking away bargaining rights does not create one more cent in the wisconsin coffers. what we're talking about is really having a voice at work. if the governor were serious about respecting teachingers, about warning public services to be the best they could be, about wanting to make sure that he heard the taxpayers and wanting to make sure that there was fiscal solvency in that state, he would actually talk to the workers as opposed to ignoring every single entreaty they have made. the reason they're on the streets is because he refuses to talk to them. the only redress they have is on the street. >> woodruff: just quickly

haley barbour, mitch daniels, newt gingrich, ron paul, tim paw lenny, rick perry, mitt romney, paul ryan, and john thune. but one non-presumptive candidate did appear and held forth. >> if i decide to run, i will not be raising taxes. [cheering] we'll be taking in hundreds of millions of dollars from other countries that are screwing us. [cheering] we'll be creating vast numbers of productive jobs. [cheering] and -- thank you very much. and we'll rebuild our country so that we can be proud. our country will be great again. >> question, is he serious about a presidential bid authorize is a publicity ploy? >> well, certainly it's a publicity ploy. the question something, is he serious about it? >> i don't know. but he is at least speaking on economic nationalism in a way that nobody else in america is. he's talking about the chinese, tariffs and putting man, one bo country. the message is right on for a republican, there's no republican out there that's got this message right now. up saw -- >> messenger. >> you saw who won on -- the messenger is too old. you saw who won sea pac, ron paul.

. >> reporter: indiana governor mitch daniels a possible presidential contender stripped away collectiveining six years ago. he takes credit for cutting his state's debt by 40%, and deficit is now under $300 million, just 2% of their 2011 budget. but some states have gone the other way. >> in indiana doesn't have a budget surplus, montana does. >> reporter: democratic governor brian schweitzer of montana worked with unions two and a half years ago. he started the negotiation by cutting his own salary. and in return union workers agreed to go to years without increasing their pay. >> we are a partnership. that's a good way to start the conversation, not with a large stick that says we don't value what you have to say and we don't want to hear your voice. >> reporter: 46 states and the district of columbia are projecting budget shortfalls next year. ten are taking on collective bargaining but the muscle of organized labor show those signs of fatigue. here at the white house tonight president obama sand the first landi are hosting a black tie dinner for all of the governors in town. governo

minnesota representative machine bookman and mitch daniels each had 4%. sarah palin got 3% and mike huckabee got 2%. >> the president will present his 3.5 trillon budget on wednesday saying will force government to live with in its means. >> it freezes yearly domestic spending for the next five- years even on programs i care deeply about which will reduce the defend fit by more than $400 billion over the next decade. >> the president said he is also proposing a freeze on federal government employee salaries. at the same tie he will push for programs designed to build up key areas including internet broad band and clean energy. >>> a new company means higher garage bills for some and dirty streets. turns out the new pick up days now coincide with street sweeping. that means operators have to now drive the street sweep ear round the trash bins preventing them from cleaning the streets properly. redwood city officials say they are working on the problem with the new company and hope to have a solution by this summer. if a time of falling budgets one san fran

come out and say that he was not going to try to infringe upon collective bargaining and then mitch daniels another big tea party favorite is also backing down off their proposed plans to possibly try to destroy unions so i think it's got legs on its own i think it is real grassroots policy and it's taking off and you know it's energized the base of the democratic party it's definitely spreading and you know we're going to continue watching as it goes from one state to the next john thanks so much for joining us my pleasure thanks a lot have a great day thanks in tampa. now coming up next there is one man who is responsible for putting juveniles behind bars for money and perks but on august serving time behind bars as well but the real question is how does one get away with doing this for so long where are the people questioning their decisions and questioning the system as quickly talk of selling out why lawn order own seem to come out on top. my. when the judicial system was first established in this country it was designed to keep people in line to follow the rules of law and ultimately

congresswoman michelle bachmann, and mitch daniels, the current governor of indiana. guest: these are individuals will been organizing and getting ready for an actual presidential campaign or some of them have been more of a tease. mitch daniels, this does not show a groundswell of support but it shows they have a launching pad there is a little bit of support for them and will have a ways to go if they want to get out rate -- name recognition. host: a cover story from the national review -- the front page story of the miami herald is -- he has no intent to run. guest: that is an interesting story. i have not heard the begging in washington from the conservative side of washington. i have heard some folks saying wooded -- wouldn't it be interesting if --. he has been fairly solid about not running. the bush fenty is a very real factor out there. -- the bush petite is a very real factor out there. -- a the bushfatigue is a very real factor i can't imagine that the boy fatigue has gone away enough. host: george bush sold about 2 million copies. guest: and a former presi

watershed moment for this particular move because depending on what happens here will encourage mitch daniels or what he's going to do any d.n.a. one way or another it's going to change the political calculus in ohio but it's it's already the what has happened in the pushback is already occurred the way michigan and their new republican governor the way they're looking at this and it's not going to push this far so it certainly is a big moment but the ripple effects of already sort of started but they haven't started in such a way that we've sort of seen this. massive protests in every state capital it's they've been small in other states there's been talk about them talking about them going to other states but it's still i think we still don't know for sure whether or not this is that particular moment you're trying to talk about you know i'd say it's hugely important we have to see where it goes and bore you again we're talking about wall street if they don't get focused on the real problem if we accept somehow that we have to have this austerity will then it's going to be a dead letter bec

mitch daniels.d yesterday if he would resign to run for the republican political -- run for the republican presidential nomination. >> our first head table guest coming out tonight was reagan's director of the u.s. office of personnel management. he is a member of the board of directors of the acu. please welcome -- [applause] 4 years, we have celebrated ronald reagan's legacy and involvement with cpac. we are proud to have the ronald center withidential campaig us. our next guest is president of the 60 plus association, a hard- hitting organization dedicated to preserving tax rights for seniors. he played a significant role in electing about 75 new members of congress last november. please welcome -- our next guest campaign for ronald reagan when he was governor and then for him during his presidential campaign. and especially for about 75 members of congress last year. please welcome my friend pat boone. [applause] our next guest is the u.s. on the veteran who served in operation desert storm and

mitch daniels, and tennessee gov. [unintelligible] i thank my colleagues for their participation and insights. leadership and experiences are crucial to reinventing the policies and programs needed to ensure that our children receive the kind of education they need and deserve, to allow them to be able to compete in the global economy. i would like to introduce the vice chair of the national governors' association, neb. governor heineman. >> thank you for your leadership. we have an outstanding program over the next few days. i am excited about the opportunity to meet with fellow governors, including many who are here for the very first time, to discuss the issues and challenges that face our states. the official business portion of the meeting begins today its session high letting job creation. that will feature a discussion with dr. michael porter of the harvard business school. we will conclude this session with the remarks from secretary zhou who is leading a delegation of chinese officials interested in establish

down the line which is in 2012 as he draws sort of a more centrist republican like mitt romney or mitch daniels the governor of indiana as his opponent this is pretty much go to them. should the nominee be someone like sarah palin or former arkansas governor mike huckabee it's quite possible obama will get significant corporate support. i think all of those are part of his calculations. >> ifill: the president said to the business people in the room today get in the game. come with me. what do you think he was saying that he thought he was saying to you. what did you hear him saying to you? >> well, i think we share a common goal. that is for this recovery to become a jobs recovery. so he's encouraging the business community that has been cautious, has been nervous, to start investing in america. >> ifill: sitting on a lot of cash. >> sitting on a lot of cash. that's right, that's right. but there are concerns there. there are concerns about hyper regulatory environment in some industries. that's very much an inhibitor. there are concerns about tax policy. whether or not washington is going to

. >> ifill: in independent yap a what is the governor mitch daniels have to say about this little stand-off which has cropped up in the last 24 hours? >> well, it's interesting because he actually has not been on republican side. he said two months ago that he would prefer that this issue just rest for this session. he thought republicans didn't campaign on it. and needed to wait until they had before they addressed it. so today he said again that would be his preference. so there is conflict between the governor and some republicans in the indiana house who are more interested in pursuing this than he is. >> ifill: does that mean we can't expect to see governor daniels send state troopers across the lines to try find and route out those fleeing democrats? >> that's exactly what it means. he said this afternoon that he will not do that. he is not interest in diverting troopers from their day jobs he said. >> ifill: is there any room for compromise or do you see any compromise building there in ohio, karen kasler? >> governor kay sick has suggested that this whole issue of collective bargain

and so someone like that, mitch daniels, governor of indiana and mitt romney, for my money those are-- there are not a lot of plausible candidates. maybe four, maybe five. >> lehrer: four or five plausible candidates, mark? >> well, jim, i don't know. i will defer to david when it comes to guys on the plaus ability of republican dan the candidates. the reality of the cpac meeting is that there were 11,000 people there at the hotel, registered for this conference. there were constituency in surgeon of the candidate. there is-- usually it is a candidate, they want to beat barack obama but they don't have anybody. what impressed me the most of all, what they did not discuss, as the world was dominated and riveted on what was going on in egypt, they didn't even address it in their speeches. >> why do you think that is. i think it is a lack of self-confidence. a sure footed innocence. they didn't know what they wanted to say. they weren't sure, the only one who was really critical that i saw was rick santorum, the former senator from pennsylvania who basically took the line that has been d

nobody put mitch daniels' picture with a crosshair over his face. like they're doing in wisconsin.ou know, if sarah palin did that, it would be the world -- >> quick point and get to a break. >> actually in fairness, since governor daniels did get some blow-back when he did this six years ago and his approval ratings can go down, but the question is, what happens in the end. people want to see balanced budgets and what's interesting is governor daniels is one of the few states, because he ended up with that flexibility in his budget, to negotiate, he's had been in the black for the past five or six years. and when other states have not. >> let me get a break in here. i want to talk about the budget woes here in washington, as well as what's going on in the middle east, right after this. opportunity can start anywhere. and go everywhere. to help revitalize a neighborhood in massachusetts, restore a historic landmark in harlem, fund a local business in chicago, expand green energy initiatives in seattle. because when you're giving, lending and investing in more communities across the

on friday, we'll talk to two governors-- republican mitch daniels of indiana and democrat brian schweitzer of montana about budget troubles in their states, and more. i'm judy woodruff. >> lehrer: and i'm jim lehrer. we'll see you on-line. and again here tomorrow evening with mark shields and david brooks, among others. thank you and good night. major funding for the pbs newshour has been provided by: >> oil companies have changed my country. >> oil companies can make a difference. >> we have the chance to build the economy. >> create jobs, keep people healthy and improve schools. >> ... and our communities. >> in angola chevron helps train engineers, teachers and farmers; launch child's programs. >> it's not just good business. >> i'm hopeful about my country's future. >> it's my country's future. >> you can't manufacture pride, but pride builds great cars. and you'll find in the people at toyota, all across america. and by the alfred p. sloan foundation. supporting science, technology, and improved economic performance and financial literacy in the 21st century. and with the ongoing supp

congresswoman michelle bachmann, and mitch daniels, the current governor of indiana.uest: these are individuals will been organizing and getting ready for an actual presidential campaign or some of them have been more of a tease. mitch daniels, this does not show a groundswell of support but it shows they have a launching pad there is a little bit of support for them and will have a ways to go if they want to get out rate -- name recognition. host: a cover story from the national review -- the front page story of the miami herald is -- he has no intent to run. guest: that is an interesting story. i have not heard the begging in washington from the conservative side of washington. i have heard some folks saying wooded -- wouldn't it be interesting if --. he has been fairly solid about not running. the bush fenty is a very real factor out there. -- the bush petite is a very real factor out there. -- a the bushfatigue is a very real factor i can't imagine that the boy fatigue has gone away enough. host: george bush sold about 2 million copies. guest: and a former preside