>>> ARIZONA LAWMAKERS REACH A
DEAL ON THE BUDGET.
>> WE HAD A LITTLE MORE MONEY
THAN WE HAD LAST YEAR.
WE HAVE THE FIRST STRUCTURALLY
BALANCED BUDGET SINCE 2007.
WE WERE ABLE TO PUT DOLLARS IN
THE K-12 EDUCATION INTO
UNIVERSITIES, INTO CHILD SAFETY,
INTO A VETERAN'S HOME.
>> A ONE-ON-ONE INTERVIEW WITH
GOVERNOR DOUG DUCEY.
>> ONE OF THE MOST SUCCESSFUL
COMPANIES IN THE WORLD THAT
COULD GO WHEREVER THEY WANT, AND
THEY CHOSE TUCSON.
IT'S GOING TO BE IN THE HEART OF
DOWNTOWN.
IT'S THE BIGGEST DEAL IN THE
LAST 25 YEARS.
>>> PLUS A DIFFERENT LINE OF
QUESTIONING.
WE'RE GETTING TO KNOW THE
GOVERNOR.
THIS IS "ARIZONA WEEK."
>>> HELLO AND THANKS FOR JOINING
US.
ARIZONA LAWMAKERS AGREED ON A
BUDGET THIS WEEK.
EARLY WEDNESDAY MORNING TO BE
EXACT.
AND ON WEDNESDAY AFTERNOON,
GOVERNOR DOUG DUCEY TRAVELED TO
TUCSON TO TALK ABOUT FUNDING
ARIZONA NEXT YEAR.
HERE'S THE FIRST PART OF MY
INTERVIEW.
GOVERNOR, THANKS FOR YOUR TIME
TODAY.
>> GOOD TO BE HERE.
THANKS FOR HAVING ME.
>> THE BUDGET FINALLY GOT
PASSED.
>> WE PASSED THE BUDGET LAST
NIGHT ABOUT 2:00 A.M. IN THE
MORNING.
WE HAD A LITTLE MORE MONEY THAN
WE HAD LAST YEAR.
WE HAVE THE FIRST STRUCTURALLY
BALANCED BUDGET SINCE 2007.
WE WERE ABLE TO PUT DOLLARS IN
THE K.-12 EDUCATION, INTO
UNIVERSITIES, INTO CHILD SAFETY,
INTO A VETERAN'S HOME.
SO IT WAS A POSITIVE BUDGET.
WE STILL LIVE WITHIN OUR MEANS,
BUT WE'RE INVESTING IN THE STATE
OF ARIZONA.
>> WHAT ARE YOU MOST PROUD OF
WHEN YOU LOOK AT THIS BUDGET AND
WHAT THE DEMOCRATS AND
REPUBLICANS WERE ABLE TO PUT
TOGETHER?
>> WHAT I'M MOST PROUD OF US IS
NOT ONLY ARE WE ABLE TO LIVE
WITHIN OUR MEANS, NOT ONLY ARE
WE ABLE TO IMPROVE THE TAX
ENVIRONMENT IN THE STATE OF
ARIZONA, BUT WE'RE ABLE TO PUT
MONEY WHERE IT'S MOST NEEDED,
AND THAT'S K-12 EDUCATION.
THIS IS SUPPORTING OUR KIDS AND
OUR TEACHERS INSIDE THE
CLASSROOM.
BUT BEYOND THE BUDGET, I'M MOST
PROUD OF PROP 123.
IT'S GOING TO BE ON THE BALLOT
MAY 17th.
EARLY BALLOTS WERE MAILED ABOUT
TWO WEEKS AGO.
IT'S A GREEN ENVELOPE.
SO I'M REALLY ENCOURAGING PEOPLE
ALL ACROSS THE STATE TO VOTE YES
ON PROP 123 TO RETURN THOSE
BALLOTS, TELL THEIR FRIENDS AND
NEIGHBORS.
MAKE SURE THEY UNDERSTAND WHAT
THE FACTS ARE AND THEN GO TO
YES
PROP 123.COM IF THEY HAVE ANY
QUESTIONS.
>> WHEN WE TALK ABOUT MONEY FOR
EDUCATION, IT'S $181 MILLION?
>> 181 ADDITIONAL DOLLARS OVER
AND ABOVE PROP 123 IN THIS
YEAR'S BUDGET.
>> OKAY.
WHAT IS TYPICALLY THE MANDATE
FOR EDUCATION?
ISN'T IT LIKE 131?
>> IT DEPENDS.
IT'S A FORMULA BASED ON THE
NUMBER OF STUDENTS IN OUR
SCHOOLS, AND THEN INFLATION
FACTOR THAT WE HAVE, AND IT'S
SOMETHING THAT'S BEEN
COMPLICATED BY WHAT'S HAPPENED
IN THE PAST.
BECAUSE BASICALLY THE DOWNTURN
WAS INCREDIBLY TOUGH ON ARIZONA
AND ARIZONIANS.
SO IF YOU REMEMBER IN 2009, THE
STATE WAS OUT OF MONEY.
THERE WASN'T ONE DOLLAR
AVAILABLE IN OUR OPERATING
ACCOUNT.
WE WERE ACTUALLY ON A CREDIT
SERVICING AGREEMENT FROM BANK OF
AMERICA.
$730 MILLION IN CREDIT TO PAY
TEACHERS OR FILL POTHOLES OR
PROVIDE ANY ESSENTIAL STATE
SERVICE.
WE HAD NO MONEY IN THE RAINY DAY
FUND.
IF YOU FAST FORWARD TO TODAY, WE
HAVE ABOUT $2 BILLION IN CASH IN
THAT OPERATING ACCOUNT,
$454 MILLION IN A RESERVE
ACCOUNT EARNING INTEREST, AND
WE'RE LIVING WITHIN OR MEANS.
>> WHAT PROP 123 DOES IS TAKES
ADVANTAGE OF THE STATE'S LAND
TRUST THAT EXISTS TO BENEFIT
K-12 EDUCATION, TAKE
SUPPLEMENTAL DOLLARS THAT WE
HAVE IN THE BUDGET, SETTLES A
YEARS-LONG LAWSUIT, ALLOWS US TO
PUT THIS MONEY INTO THE
CLASSROOM, PAY OUR TEACHERS MORE
MONEY, PROVIDE MORE RESOURCES.
IT HAS ACCOUNTABILITY, AND IT'S
CONSTITUTIONALLY PROTECTED.
BUT IT'S UP TO THE VOTERS.
THEY NEED TO VOTE YES IF THEY
WANT TO SEE THIS HAPPEN.
>> THE CRITICS, THE OPPONENTS,
ARE SAYING THE MONEY IS THERE IN
THE RAYNY DAY FUND.
WE'VE ASKED YOU THIS BEFORE.
WHY AREN'T WE JUST TAKING IT OUT
OF THAT FUND?
>> ONE, THE RAINY DAY FUND HAS
GOT $454 MILLION.
IT SOUNDS LIKE A LOT OF MONEY,
AND IT IS.
BUT IN STATE GOVERNMENT, IT'S
JUST NOT THAT MUCH.
AND IT WOULDN'T FUND NEXT YEAR
AND THE YEAR AFTER.
IF WE PASS PROP 123, WE'LL HAVE
CONSISTENT AND PREDICTABLE
FUNDED, MILLIONS AND BILLIONS OF
ADDITIONAL DOLLARS, AGAIN
WITHOUT RAISING TAXES, AND
THEY'LL BE CONSTITUTIONALLY
PROTECTED.
NO GOVERNOR, NO FUTURE GOVERNOR,
AND NO LEGISLATOR WILL BE ABLE
TO TOUCH THIS MONEY.
IT WILL GO INTO THE BASELINE
FORMULA, STRAIGHT INTO
CLASSROOMS TO SUPPORT TEACHERS
AND CHILDREN.
AND THERE'S ACCOUNTABILITY
AROUND IT AS WELL.
SO THIS IS A REAL WIN-WIN.
THIS IS THE RESULT OF A
NEGOTIATION BETWEEN THE
EDUCATION ESTABLISHMENT AND
LEGISLATIVE LEADERSHIP, AND PROP
123 IS THE SOLUTION AND THE BIG
FIRST STEP FOR US TO MOVE
FORWARD IN K-12 EDUCATION.
I'M URGING PEOPLE TO VOTE YES ON
IT.
>> THE FORMULA, THE TRIGGERS,
ARE A LITTLE TRICKY TO
UNDERSTAND.
HOW DO YOU EXPLAIN THIS TO
PEOPLE?
IN THE FUTURE, THE STATE LAND
TRUST WON'T BE TAPPED OUT?
>> THAT'S IMPORTANT TO KNOW.
THE LAND TRUST WILL BE WORTH
MORE TEN YEARS FROM NOW THAN IT
IS TODAY.
REMEMBER, THAT'S A PUBLIC TRUST
THAT EXISTS TO BENEFIT K-12
EDUCATION.
THAT'S WHY IT'S THERE.
SOME PEOPLE ARE SAYING IF WE
DON'T SPEND ANY MONEY OUT OF THE
TRUST, IT WILL BE BIGGER TEN
YEARS FROM NOW.
OF COURSE IT WILL, EXCEPT IT
EXISTS TO HELP K-12 EDUCATION.
AND THROUGH PROPER INVESTMENT,
THROUGH ONGOING LAND SALES, THE
TRUST WILL BE BIGGER ANYWAY, BUT
WE'LL HAVE MORE MONEY IN THE
K-12 EDUCATION.
WHEN PEOPLE ASK ABOUT THE
TRIGGERS, I HAVE TO REMIND THEM
THIS IS A SETTLEMENT.
REMEMBER, THERE WERE TWO SIDES
THAT ARE AT LOGGERHEADS.
I SAID IT'S TIME TO STOP PAYING
LAWYERS AND STOP PAYING
TEACHERS.
WHAT THE TRIGGERS DO ARE PROTECT
THE GENERAL FUND IN A DRAMATIC
DOWNTURN.
NOW, WE DON'T ANTICIPATE THAT,
BUT THAT'S PART OF THE REASON WE
HAVE THE RAINY DAY FUND, IN CASE
SOMETHING HAPPENS, WE HAVE SOME
PROTECTION.
WE'VE BEEN RESPONSIBLE WITH THE
TOP PRIORITY BEING OUR TEACHERS
AND KIDS IN K-12 EDUCATION, AND
THAT'S REALLY THE PROBLEM, AND
THAT'S THE SOLUTION THAT PROP
123 BRINGS.
>> STAYING WITH CHILDREN,
KIDSCARE DID NOT PASS OR HAS NOT
YET.
IN THE PAST, YOU'VE SAID YOU
WOULD BE OPEN TO IT.
WILL YOU STEP IN AND CHANGE IT?
>> WE ARE OPEN TO IT.
I WANT TO TALK TO YOU ABOUT --
YOU KNOW, WE TALKED A LOT ABOUT
THE DOWNTURN AND HOW BAD THINGS
WERE IN THE PAST, AND I THINK
IT'S IMPORTANT THAT PEOPLE
REMEMBER THAT.
THAT'S WHY I LIKE TO TALK ABOUT
181 MILLION ADDITIONAL DOLLARS.
130 MILLION ADDITIONAL DOLLARS
INTO THE DEPARTMENT OF CHILD
SAFETY.
10 MILLION ADDITIONAL DOLLARS
FOR A VETERAN'S HOME.
THESE ARE THE COMPETING THINGS.
THESE ARE THE THINGS WE WERE
ABLE TO FUND.
WE HAVE CHILDREN AS THE HIGHEST
PRIORITY IN OUR STATE.
WE HAVE OVER 18,000 THAT ARE IN
THE CARE OF THE STATE AND THE
DEPARTMENT OF CHILD SAFETY.
THAT'S WHY I ALWAYS SAY THANK
YOU TO ADOPTIVE PARENTS AND
FOSTER PARENTS AND
COURT-APPOINTED SPECIAL
ADVOCATES.
BUT WE HAVE NOT BEEN ABLE TO
FUND EVERY REQUEST THAT WE HAVE.
WE'RE GOING TO CONTINUE TO WORK
THROUGH THIS LEGISLATIVE
SESSION.
I HAVE BEEN OPEN-MINDED TO THIS,
BUT IN TERMS OF THE BUDGET, THIS
IS THE BUDGET THAT WE HAVE
TODAY.
>> SOME PEOPLE SEE THIS AS THESE
ARE FEDERAL DOLLARS.
WHY CAN'T WE JUST TAKE THEM AS
THE STATE OF ARIZONA?
WHY CAN'T WE?
>> WELL, THERE ARE FEDERAL
DOLLARS, AND THEN THERE ARE
PERVERSE INCENTIVES THAT HAVE
PUT THE STATE IN A POSITION
WHERE IT'S BEEN ON THE HOOK FOR
TENS OF MILLIONS OF DOLLARS.
THAT'S WHY WE'RE TRYING TO MAKE
EVERY DECISION GOING FORWARD IN
THE LIGHT OF THE HOLE THAT WE
JUST DUG OUT OF, KNOWING THAT
THE FEDERAL GOVERNMENT CAN
CHANGE THE RULES AND PULL THE
RUG OUT FROM UNDERNEATH THE
STATE.
SO WE ARE WORKING WITH THE
PROPER DEPARTMENTS TO HAVE MORE
INFORMATION AS TO WHAT'S
POSSIBLE.
>> SO KIDSCARE IS NOT COMPLETELY
DEAD ON THE TABLE IN ARIZONA?
>> IN THE BUDGET THIS YEAR AND
REALLY FOR THIS SESSION, I DO
NOT WANT TO RAISE EXPECTATIONS
AT ALL ON THIS.
WE'RE NOT DONE WITH THE SESSION,
BUT THIS IS NOT SOMETHING GIVEN
THE OTHER HIGHER PRIORITIES
AROUND K-12 EDUCATION,
DEPARTMENT OF CHILD SAFETY,
VETERANS' SERVICES, THAT WE'VE
BEEN ABLE TO ADDRESS.
>> EVERY OTHER STATE IN THE
COUNTRY HAS KIDSCARE, WHY NOT
ARIZONA?
>> OUR DOWNTURN WAS SO TOUGH,
THE STATE ACTUALLY HAD TO STOP
THIS S-CHIP PROGRAM.
IT WAS INCREDIBLY BRUTAL.
WHAT WE WANT TO DO IS MAKE SURE
THAT WHEN WE'RE PROVIDING A
SERVICE, THAT WE CAN PROVIDE IT
PREDICTABLY AND CONSISTENTLY
OVER TIME BEFORE WE BRING PEOPLE
INTO THOSE POOLS.
THAT'S WHAT THE DESIRE IS HERE,
AND IT'S REALLY THE ATTITUDE
THAT WE WANT TO COME AT THIS
FROM A RESPONSIBLE WAY WHILE
TAKING CARE OF THE TOP NEEDS IN
OUR STATE AND THE HIGHEST
PRIORITIES, BUT NOT TO PUT
SOMETHING OUT THERE THAT HAS
THIS PERVERSE INCENTIVE FROM THE
FEDERAL GOVERNMENT THAT WE MAY
NOT BE ABLE TO FUND GOING INTO
THE FUTURE.
>> LATER IN THE PROGRAM, WE'LL
FACT CHECK SOME OF WHAT THE
FACT CHECK SOME OF WHAT THE
GOVERNOR SAID WHEN IT COMES TO
DOLLARS SPREAD ACROSS THE STATE.
>> NOW INTO THE BUDGET, HERE
AGAIN IS GOVERNOR DUCEY.
>> HIGHER EDUCATION, YOU'VE
RESTORED SOME MONEY.
>> WE'VE BEEN ABLE TO RESTORE
SOME MONEY.
WE'VE BEEN ABLE TO CHANGE THE
TREND LINE ON OUR STATE'S GREAT
UNIVERSITIES, INCLUDING THE U OF
A.
WE WERE ABLE TO PUT $200 MILLION
INTO PAYING THE ROLLOVER THAT
HAPPENED DURING THE STATE EIGHT
DOWNTURN.
NOT ONLY DID WE HAVE TO DIG OUT
OF THE HOLE WE WERE IN, BUT
THERE WERE ALSO SOME DECISIONS
MADE WHILE WE WERE IN THAT HOLE
THAT HAVE BEEN LINGERING AND
BURDENING THE STATE, BURDENING
THE UNIVERSITIES.
WE'RE VERY PROUD OF OUR STATE'S
UNIVERSITIES.
I LOVE TO BRAG ON THEM ALL THE
TIME, AND NOW WE'RE ABLE TO
BRING ADDITIONAL RESOURCES AND
CHANGE THAT TREND LINE.
>> WHAT IS A FREEDOM SCHOOL?
>> A FREEDOM SCHOOL WOULD BE A
SCHOOL THAT TALKS ABOUT FREE
ENTERPRISE, TALKS ABOUT MUCH OF
WHAT HAS CREATED THE GREAT
AMERICAN ECONOMY.
IT REALLY IS PART OF WHAT IS
TALKED ABOUT SO MUCH AROUND THE
WORLD NOW WHEN YOU SEE THESE
OTHER THIRD-WORLD NATIONS
LIFTING PEOPLE OUT OF POVERTY
BECAUSE THEY'VE BEEN ABLE TO
BRING GOOD FREE ENTERPRISE AND
FREE MARKET IDEAS LIKE PROPERTY
RIGHTS AND RULE OF LAW AND SOUND
MONEY AND PROPER WAGES.
THE THINGS THAT CREATE
INNOVATION, ENTREPRENEURSHIP AND
BUSINESSES.
AND THESE ARE SOME THINGS THAT
WE'D LIKE TO SEE ACROSS THE
BOARD IN OUR SCHOOLS.
WE'RE LUCKY ENOUGH TO HAVE THIS
AT UNIVERSITY OF ARIZONA, AT
ARIZONA STATE UNIVERSITY, AND
THESE ARE IMPORTANT AS KIDS WANT
TO GO INTO BUSINESS OR NO MATTER
WHAT PROFESSION THAT THEY'RE IN,
THAT THEY UNDERSTAND WHAT CAN
DRIVE QUALITY HIGHER AND PRICES
LOWER AND PROVIDE EMPLOYMENT FOR
MANY MORE OF OUR CITIZENS.
>> FREEDOM SCHOOLS ARE CONNECTED
TO THE KOCH BROTHERS AND THAT
MAKES PEOPLE UNCOMFORTABLE.
>> THERE ARE SIGNIFICANT DONORS
TO ALL OF OUR UNIVERSITIES AND
SOME PEOPLE HAVE A HEART FOR THE
MEDICAL SCHOOL.
SOME PEOPLE HAVE A HEART FOR
DIFFERENT SERVICES THAT ARE
TAUGHT INSIDE OUR SCHOOLS.
AND OTHERS HAVE A HEART FOR OUR
FREE ENTERPRISE SYSTEM, FOR
ORCAPITALIST SYSTEM OF ECONOMIC
DEVELOPMENT AND GROWTH.
SO I THINK THIS IS NORMAL AND
CUSTOMARY FOR UNIVERSITIES,
ESPECIALLY PUBLIC UNIVERSITIES
ACROSS THE COUNTRY, AND IT'S A
POSITIVE, THAT WE HAVE A
DIVERSITY INSIDE OUR
UNIVERSITIES AND A DIVERSITY OF
THOUGHT.
THAT'S WHAT A YOUNG PERSON
SHOULD BE EXPOSED TO, AND THEN
THEY MAKE UP THEIR OWN MIND.
>> ARIZONA IS STILL OPEN FOR
BUSINESS.
A BIG DEAL REACHED THIS WEEK.
TELL ME ABOUT THAT.
>> WELL, WE HAVE BEEN ABLE TO
BRING CATERPILLAR TO SOUTHERN
ARIZONA.
600 NEW JOBS, $600 MILLION-PLUS
IN ECONOMIC DEVELOPMENT.
IT WAS A COMPETITIVE SITUATION
AGAINST OTHER STATES AND OTHER
CITIES.
I THINK THAT TUCSON AND PIMA
COUNTY IN SOUTHERN ARIZONA
SHOULD BE INCREDIBLY PROUD.
I WANT TO SAY THANKS TO THE
ARIZONA COMMERCE AUTHORITY.
I WANT TO SAY THANKS TO MAYOR
ROTHSCHILD AND THE CITY OF
TUCSON, JOE SNELL IN THE SUN
CORRIDOR.
THIS WAS A REAL TEAM EFFORT.
RIGHT OUT OF THE GOVERNOR'S
OFFICE TO PRESENT ARIZONA TO ONE
OF THE MOST SUCCESSFUL COMPANIES
IN THE WORLD THAT COULD GO
WHEREVER THEY WANT, AND THEY
CHOSE TUCSON.
IT'S GOING TO BE IN THE HEART OF
DOWNTOWN.
IT'S THE BIGGEST DEAL IN THE
LAST 25 YEARS ACCORDING TO THE
"ARIZONA DAILY STAR," AND IT'S
JUST THE BEGINNING FOR SOUTHERN
ARIZONA.
>> WHY DID CATERPILLAR COME
HERE?
IS IT THE PROXIMITY TO MEXICO.
SOME OF THESE TAX BREAKS?
>> IT'S A COMBINATION OF THINGS.
OF COURSE A FAVORABLE TAX
ENVIRONMENT IS IMPORTANT TO ANY
BUSINESS OR ANY FAMILY.
BUT I THINK OUR RELATIONSHIP
WITH MEXICO ON THE SOUTHERN
BORDER, THE TRADE RELATIONSHIPS
THAT WE'VE BEEN ABLE TO BUILD
NOT ONLY WITH THEIR NATIONAL
GOVERNMENT BUT ALSO WITH CLAUDIA
PAVLOVICH IN SONORA AND THE
QUALITY OF LIFE IN ARIZONA.
WE KNOW THIS IS A GREAT PLACE TO
WORK, LIVE, AND PLAY.
70% OF OUR ADULTS MOVED HERE
FROM SOMEWHERE ELSE.
SO CATERPILLAR GOT IN THE
POSITION OF LOOKING AT SEVERAL
DIFFERENT COMPETITIVE PLACES.
THEY CHOSE ARIZONA.
WE'VE BEEN ABLE TO LAND APPLE,
GOOGLE INVESTMENTS, UBER
INVESTMENTS AT THE UNIVERSITY OF
ARIZONA.
SO WE'RE WINNING MANY OF THESE.
I'M SITTING AT THE TABLE IN
THESE DISCUSSIONS, ENCOURAGING
OUR TEAM TO MAKE SURE THAT WE
MAKE THE PROPER ADJUSTMENTS SO
THAT WE'RE NOT ONLY A GREAT
PLACE FOR CITIZENS AND TAXPAYERS
TO LIVE BUT FOR BUSINESSES TO
RELOCATE.
>> RECENTLY A REPORT CAME OUT
AND SAID THE TAX CUTS NOT
EXACTLY MAYBE WHAT YOU HAD HOPED
OR WHAT THE NUMBERS HAD EXPECTED
TO BE.
HOW DO YOU RESPOND TO THAT?
>> I LOOK AT THE BUDGET IN ITS
TOTALITY.
I MEAN I HAVE TO, AS GOVERNOR,
THINK OF ALL THE PEOPLE IN EVERY
PART OF OUR STATE.
WE HAVE BEEN ABLE TO IMPROVE OUR
TAX SITUATION.
I MEAN WE JUST LANDED
CATERPILLAR, SO I'D SAY WE'RE
GOING IN THE RIGHT DIRECTION.
AT THE SAME TIME, WE HAVE NEEDS
IN OUR K-12 EDUCATION SYSTEM.
OUR UNIVERSITIES NEED SOME
DOLLARS.
THE DEPARTMENT OF THE CHILD
SAFETY.
THESE ARE THE CHILDREN THAT ARE
FROM THE MOST VULNERABLE
POSITION IN THE STATE.
SO IT'S ALWAYS A BALANCING ACT
OF WHAT'S RIGHT FOR OUR
CITIZENS.
SO I WANT TO FOCUS ON OUR
BUSINESS ENVIRONMENT, BUT IT'S
NOT JUST OUR BUSINESS
ENVIRONMENT.
IT'S GOT TO BE THE QUALITY OF
LIFE FOR ALL OF OUR CITIZENS IN
EVERY PART OF OUR STATE.
SO I'M PROUD THAT WE HAVE BEEN
ABLE TO IMPROVE THE TAX
SITUATION, AND AS WE GO OUR
ECONOMY, WE MAY HAVE FURTHER
OPPORTUNITY TO DO THAT.
>> 26 MILLION, BILLION --
MILLION DOLLARS FOR BORDER
STRENGTH FORCE.
WHY IS THAT SO IMPORTANT WHEN
THE FEDERAL GOVERNMENT IS HERE
AND MAYBE CAN DO THE JOB ITSELF?
>> THE FEDERAL GOVERNMENT HAS
NEGLECTED THE BORDER.
I THINK ANYONE WILL TELL YOU
THAT IN SOUTHERN ARIZONA, AND WE
HAVE DRUG CARTELS AND HUMAN
TRAFFICKING IN A WIDE-OPEN AND
UNPROTECTED SOUTHERN BORDER.
NOW, WE HAVE REACHED OUT TO
PARTNER MORE CLOSELY WITH THE
FEDERAL GOVERNMENT.
WE LEARNED WE COULD WORK
TOGETHER DURING THE SUPER BOWL
TWO YEARS AGO.
WE'VE ALSO REACHED OUT TO OUR
COUNTY SHERIFFS TO PARTNER AND
BRING LAW ENFORCEMENT ASSETS
TOGETHER TO FOCUS ON THE BAD
GUYS, THE DRUG DEALERS, THE
HUMAN TRAFFICKERS.
BUT THESE ARE THINGS THAT ARE
HAPPENING IN ARIZONA, AND WE'VE
ALL READ ABOUT THE HEROIN
EPIDEMIC AND OPIOIDS THAT ARE
ALL ACROSS OUR COUNTRY.
MANY OF THOSE ARE COMING THROUGH
OUR SOUTHERN BORDER.
I THINK AS GOVERNOR OF THE STATE
OF ARIZONA, WITH PUBLIC SAFETY
AS A NUMBER ONE PRIORITY, THAT
WE NEED TO PROVIDE LAW
ENFORCEMENT THE RESOURCES THEY
NEED TO PROTECT OUR CITIZENS.
>> THERE ARE PEOPLE WHO IS
SITTING AT HOME WATCHING THIS
INTERVIEW AND THINKING ABOUT THE
ISSUES THAT AFFECT THEM AND
THEIR FAMILIES AND THEIR POCKET
BOOKS.
WHAT DO YOU SAY TO THEM AFTER
THIS BUDGET IS DELIVERED AND WE
START TO MOVE FORWARD?
>> WELL, I WOULD SAY IF YOU LOOK
AT THIS BUDGET, THE FACT THAT WE
HAD ADDITIONAL DOLLARS, THE FACT
THAT WE WERE ABLE TO LIVE WITHIN
OUR MEANS, THAT WE IMPROVED THE
BUSINESS CLIMATE.
WE HAVE PROOF OF THAT WITH
CATERPILLAR COMING TO SOUTHERN
ARIZONA, THAT WE WERE ABLE TO
PUT SIGNIFICANT FUNDS INTO K-12
EDUCATION TO SUPPORT OUR KIDS
AND TEACHERS, AND WITH THE HOPE
OF PROP 123 PASSING IN JUST A
FEW WEEKS, WE'LL HAVE 230
MILLION ADDITIONAL DOLLARS FOR
K-12 WITHOUT RAISING TAXES.
ARIZONA IS ON THE RISE.
WE'RE HEADED IN THE RIGHT
DIRECTION.
WE'RE WORKING WITH A BROAD
COALITION TO DO WHAT'S RIGHT FOR
ALL THE CITIZENS OF OUR STATE.
I'M THANKFUL TO BE THE GOVERNOR
OF THE STATE OF ARIZONA, AND
WE'RE GOING TO STAY FOCUSED ON
MAKING THIS THE BEST PLACE IN
THE COUNTRY TO LIVE, WORK, GO TO
SCHOOL, AND DO BUSINESS.
>>> MY COLLEAGUE HERE,
CHRISTOPHER CONOVER, SOME BIG
NEWS COMING OUT OF THE
LEGISLATURE THIS WEEK.
>> SOME BIG NEWS AND SOME
UNEXPECTED NEWS.
THE KIDSCARE CHILDREN'S
INSURANCE PROGRAM WAS
RESURRECTED FROM WHAT MOST
PEOPLE THOUGHT WAS THE DEAD AND
PASSED THURSDAY NIGHT.
A GROUP OF HOUSE REPUBLICANS
USED A LOT OF PARLIAMENTARY
PROCEDURE, GOT IT BROUGHT UP,
AND FOR A VERY CONTENTIOUS
DEBATE, GOT IT PASSED, HAD IT
SENT TO THE SENATE.
ANDY BIGGS, THE SENATE PRESIDENT
IS NOT A FAN.
HE'S ALREADY BLOCKED THE BILL
ONCE, A STAND-ALONE KIDSCARE
BILL.
KEPT IT FROM BEING BROUGHT UP.
AND ON FRIDAY AROUND LUNCH TIME,
HE COULDN'T STEM THE TIDE
ANYMORE, AND IT WAS BROUGHT UP
AND PASSED ON A 16-12 VOTE.
>> NOW, ON WEDNESDAY, THIS WAS
DEAD.
I ASKED GOVERNOR DUCEY ABOUT
THIS, AND HE SAID NOT TO RAISE
ANY EXPECTATIONS.
WE'VE JUST LEARNED HE WILL SIGN
THIS BILL AS WELL.
>> HE WILL SIGN THE BILL.
AND, AGAIN, THIS IS A TOUGH ONE
FOR EVERYBODY.
IT'S A PROGRAM THAT WILL ALLOW
REIMPLIMTED 30,000 ARIZONA
CHILDREN POTENTIALLY TO GET
HEALTH INSURANCE.
THAT'S HARD TO GO AGAINST.
THE ARGUMENT IS MONEY.
THE FEDERAL GOVERNMENT HAS SAID
THEY WILL FULLY FUND IT.
WHEN ARIZONA SUSPENDED KIDS DLG
CARE, THEY DID IT DURING THE
RECESSION WHEN WE DIDN'T HAVE
THE MONEY.
NOW THE FEDERAL GOVERNMENT HAS
SAID YOU DON'T HAVE TO MATCH ANY
MONEY.
WE'LL PAY FOR THE WHOLE THING.
PART OF THE CONCERN IS THAT THE
FEDERAL GOVERNMENT WILL SIMPLY
CHANGE THEIR MIND.
WE COULD HAVE A CHANGE IN
ADMINISTRATION.
WE KNOW WE'LL HAVE A CHANGE IN
ADMINISTRATION.
AND THEY COULD CHANGE THEIR
MIND, AND ARIZONA COULD END UP
ON THE HOOK FOR THAT.
OF COURSE THAT WOULD BE AN
APPROPRIATION, SO THE
LEGISLATURE WOULD HAVE TO
APPROVE PAYING THAT MONEY OUT TO
KEEP THESE KIDS THAT WOULD NOW
BE IN, OR THEY COULD CHOOSE TO
SUSPEND IT AGAIN.
>> OKAY.
CERTAINLY AN EMOTIONAL ONE.
MOVING ON TO K-12 EDUCATION
GOVERNOR DUCEY SAID IN HIS
INTERVIEW, $181 MILLION IN
ADDITIONAL FUNDING.
BUT IT'S NOT QUITE ADDITIONAL,
IS IT?
>> IT'S ADDITIONAL IN THE SENSE
OF IT'S MORE MONEY.
BUT WHEN YOU BREAK IT DOWN, IT'S
A LITTLE MORE INTERESTING.
THERE'S $130 MILLION IN THERE
THAT CONSTITUTIONALLY THE
LEGISLATURE HAS TO ADD IN.
THEN THE BUDGET, AS IT WAS
ORIGINALLY PRESENTED BY HOUSE
AND SENATE LEADERS AND WITH THE
GOVERNOR'S AGREEMENT, HAD A NEW
FUNDING FORMULA IN IT WHERE SOME
SCHOOLS WOULD LOSE MONEY DUE TO
CHANGES IN ENROLLMENT AND THINGS
LIKE THAT.
A GROUP OF HOUSE REPUBLICANS
STOOD UP AND SAID, WE WON'T VOTE
FOR THIS.
AND THEY STALLED THE BUDGET VOTE
FOR A WEEK.
NEGOTIATIONS BACK AND FORTH, AND
FINALLY THEY GOT ABOUT
$30 MILLION PUT INTO THE BUDGET
TO HOLD SOME SCHOOLS HARMLESS
DUE TO THIS NEW FORMULA.
SO THERE'S $160 MILLION OF THAT
180 MILLION RIGHT THERE.
180 MILLION RIGHT THERE.
>> PROP 123, THE SPECIAL
ELECTION ON MAY 17th, IF IT
PASSES, HOW MUCH MORE MONEY GOES
INTO EDUCATION?
>> IF IT PASSES, IT WORKS OUT TO
$300 A YEAR PER STUDENT.
SO EVERY CHILD, SITTING AT A
DESK IS WORTH AN ADDITIONAL $300
EACH IN THE FUNDING FORMULA.
OVER THE TEN-YEAR LIFE OF PROP
123, IF IT PASSES, THAT'S ABOUT
$3.5 BILLION.
>> OKAY, IF IT DOES NOT PASS,
HOW DOES THIS CHANGE THE
FUNDING?
>> IF IT DOESN'T PASS, IT
BECOMES VERY INTERESTING.
OBVIOUSLY IT'S A $3.5 BILLION
ISN'T THERE, THE PROP 123 WAS
PUT UP AS A SETTLEMENT TO A
LAWSUIT.
WHEN THE LEGISLATURE STOPPED
PAYING INFLATION PAYMENTS DURING
THE RECESSION, THE CAVE CREEK
SCHOOL DISTRICT, ON BEHALF OF
SCHOOL DISTRICTS, SUED AND SAID,
YOU HAVE TO PAY THAT.
THE COURTS RULED THAT THE STATE
DOES HAVE TO PAY THAT, AND THE
QUESTION THEN BECAME HOW DOES
THE STATE PAY IT?
THE ANSWER EVENTUALLY BECAME
PROP 123.
SO IF PROP 123 DOESN'T GO
THROUGH, THAT RULING STILL
STANDS, AND THE STATE WILL HAVE
TO FIGURE OUT ANOTHER WAY TO PAY
IT.
>> OKAY.
HIGHER EDUCATION, SOME OF THE
SEMANTICS WE'RE HEARING AGAIN,
MORE MONEY.
BUT REALLY IT'S RESTORED MONEY,
AND THIS IS MONEY THAT WAS TAKEN
LAST YEAR.
>> EXACTLY.
$19 MILLION IN THE STATE BUDGET
TO THE THREE STATE UNIVERSITIES
THROUGH THE BOARD OF REGENTS.
IT'S WHAT THEY CALL ONE-TIME
MONEY.
IT'S ONE CHECK THEY'RE WRITING.
THE LEGISLATURE SAID, DON'T LOOK
FOR THAT $19 MILLION NEXT YEAR.
IT'S JUST THIS YEAR.
IT'S TO MAKE UP FOR SOME OF THE
FUNDS THAT HAVE BEEN CUT IN
RECENT YEARS FROM THE
UNIVERSITIES.
DEMOCRATS TRIED TO AMEND THE
BUDGET TO ADD ANOTHER
$81 MILLION FOR A TOTAL OF
$100 MILLION TO REALLY FILL IN
THOSE CUTS.
THOSE EFFORTS WERE REBUFFED.
SO IT'S JUST 19.
>> WE HEARD ABOUT FREEDOM
SCHOOLS, AND AS WE UNDERSTAND
IT, THAT PHILOSOPHY IS CURRENTLY
IN TWO UNIVERSITIES IN ARIZONA.
>> FREEDOM SCHOOLS DEAL WITH
ECONOMICS, AND THERE ARE TWO OF
THEM, ONE AT ASU, AND ONE AT THE
UNIVERSITY OF ARIZONA.
THESE SCHOOLS DON'T GIVE A
DEGREE, LIKE THE JOURNALISM
SCHOOL GIVES A DEGREE, THE
MEDICAL SCHOOL GIVES DEGREES.
THIS IS NOT A SCHOOL YOU WOULD
BE PART OF TO GET A DEGREE.
IT IS SIMPLY ECONOMIC
PHILOSOPHY, AND IT'S FAIRLY
LIBERTARIAN.
IT WAS ORIGINALLY FUNDED BY THE
KOCH BROTHERS.
NOW THE STATE IS KICKING IN
$5 MILLION IN THE COMING FISCAL
YEAR THAT WILL BE SPLIT TO KEEP
THESE SCHOOLS GOING.
>> GOVERNOR DUCEY TALKED A LOT
ABOUT CATERPILLAR RELOCATING OR
MOVING AN OFFICE TO THE TUCSON
AREA.
DOES THIS HAVE TO DO WITH THESE
CORPORATE TAX CUTS WE'VE HEARD
ABOUT SINCE HE'S BEEN IN OFFICE?
>> CORPORATE TAX CUTS IS A BIG
PART OF ECONOMIC DEVELOPMENT,
AND THE GOVERNOR PROMISED HE WAS
CUTTING TAXES EVERY YEAR HE WAS
IN OFFICE.
HE PROMISED THAT ON THE CAMPAIGN
TRAIL.
THIS YEAR'S BUDGET HAS ABOUT
$30 MILLION SET ASIDE FOR TAX
CUTS.
SOME OF IT'S NOT FULLY SPECIFIED
YET, EXACTLY WHERE IT WOULD GO.
THE JLBC, WHICH IS THE
LEGISLATURE'S NON-BUDGET STUDY
ARM IF YOU WILL CAME OUT WITH A
REPORT THIS WEEK AND IT SAYS
THOSE CORPORATE TAX RESULTS WILL
RESULT IN ABOUT 350 MILLION
FEWER DOLLARS OVER TIME IN THE
STATE COFFERS.
EVEN DON CHUTER, SENATE
PROBATIONS CHAIR, SAID WE'VE
BEEN VERY GOOD ABOUT CUTTING OUR
SPENDING IN RECENT YEARS.
WHICH NEED TO BEGIN TO LOOK AT
REVENUE.
WE MAY BE CUTTING REVENUE TOO
MUCH.
THIS IS A PHILOSOPHICAL
ARGUMENT.
THE KBUJ ET THIS YEAR IS SETTLED
AND HAS TAX CUTS IN IT.
ARIZONA HAS ONE OF THE LOWEST
CORPORATE INCOME TAX RATES IN
THE NATION.
WE'LL HAVE TO SEE WHAT HAPPENS
NEXT YEAR AND IN THE FOLLOWING
YEARS AS BUDGETS ARE WORKED OUT.
>> NOW THAT KIDSCARE HAS WRAPPED
UP, THAT'S HISTORIC FOR ARIZONA
BECAUSE IT'S NOW ONE OF THE
OTHER STATES THAT HAPPENS TO
OFFER THIS.
>> WE WERE THE ONLY STATE NOT
OFFERING A CHILDREN'S HEALTH
INSURANCE PROGRAM.
THE GOVERNOR, AS YOU SAID, HAS
INDICATED HE WILL SIGN IT WHEN
HE GETS IT.
SO WE NOW JOIN THE REST OF THE
NATION.
>> ALL RIGHT.
VERY INTERESTING.
A LOT TO GET TO AND HOPEFULLY
THE SESSION WRAPS UP BY NEXT
WEEK.
CHRISTOPHER CONOVER, THANK YOU
FOR YOUR ANALYSIS.
>>> BEFORE WE END THE PROGRAM,
OF COURSE WE HAD SOME SERIOUS
QUESTIONS FOR GOVERNOR DUCEY
ABOUT STATE POLICY, BUT ALSO A
RARE OPPORTUNITY TO ASK THE
GOVERNOR SOME PERSONAL
QUESTIONS, INCLUDING HIS
VISITING THE MOTOR VEHICLE
DEPARTMENT WITHOUT HIS SECURITY
TEAM.
>> I WILL SECRET SHOP.
I SECRET SHOPPED THE MVD.
I HEARD THAT THE WAIT TIMES WERE
TOO LONG TO GET A LICENSE.
SO WHEN YOU'RE GOVERNOR, HI TO
RENEW MY PICTURE ON MY LICENSE.
THEY WERE GOING TO HELP ME OUT,
DO A SPECIAL PICTURE FOR ME, AND
I SAID TO MY TEAM, YOU KNOW, I
JUST WANT TO GO IN AS A CITIZEN.
SO I TOOK OFF MY COAT, TOOK OFF
MY TIE.
I WANTED TO SEE HOW THE MVD DID.
IN THIS NEW ROLE, I CAN
SOMETIMES TELL IF PEOPLE
RECOGNIZE ME OR IF THEY DON'T.
I WALKED IN THE MVD IN THE LATE
AFTERNOON ON A MONDAY.
THE PLACE WAS PACKED.
NOBODY KNEW WHO I WAS EVEN
THOUGH THERE WAS A BIG PICTURE
OF ME ON THE WALL.
I GOT MY TICKET AT 4:24.
IT'S A THREE-STEP PROCESS.
I SAT DOWN.
I WAS CALLED FOR THE SECOND STEP
AT 4:28.
AS I WAS SITTING IN MY SEAT,
SOMEBODY WALKED BY, AND THEY
SAID, YOU'RE ON TV.
AND THEY SAID IT JUST LOUD
ENOUGH SO THAT EVERYONE HEARD
WHAT HE SAID.
SO I LOOKED UP AND SAID, MY
NAME'S DOUG DUCEY.
>> AND HE SAID, I KNOW YOU
BECAUSE YOU'RE ON TV, AND I
WATCH A LOT OF TV.
>> AND I SAID, WELL, I RAN FOR
GOVERNOR.
MAYBE THAT'S HOW YOU SAW ME.
HE GOES THAT'S IT, I KNEW IT.
HE TURNED TO WALK AWAY AND HE
STOPPED AND TURNED BACK, AND HE
SAID, I'M SORRY.
AND I SAID SORRY FOR WHAT?
AND HE SAID, THAT YOU LOST.
AND I SAID, ACTUALLY, I WON.
AND HE SAID, WHAT ARE YOU DOING
IN HERE?
AT THAT TIME THEY CALLED MY
NUMBER.
IT WAS 4:38, SO IT TOOK 14
MINUTES.
TOTAL TIME IN THE MVD TO GET MY
PICTURE CHANGED ON MY LICENSE,
MAYBE NOT COLD STONE TIME, AND
WE CERTAINLY CAN COMPRESS IT,
BUT IT WAS KIND OF A FUNNY
STORY.
IT SHOWED NO MATTER HOW HARD
YOU'RE TRYING TO MOVE YOUR
PUBLIC POLICY FORWARD, THERE'S
STILL SOME PEOPLE THAT DON'T
KNOW WHAT YOU'RE DOING IN STATE
GOVERNMENT.
>> HERE WE ARE EARLY MAY, A LOT
OF FAMILIES STARTING TO PREPARE
FOR SUMMER VACATION.
WHAT ARE THE DUCEYS UP TO THIS
SUMMER?
>> WE DO A LOT OVER THE SUMMER.
AT LEAST WE TRY TO.
MY BOYS ARE ACTIVE IN SPORTS.
FIPPICALLY THERE'S A LACROSSE
CAMP FOR A FOOTBALL CAMP OR A
HOCKEY CAMP.
THAT'S WHAT WE'RE SKRAMP BLING
TO DO.
WE LOVE TO GET AWAY, GET A
LITTLE BEACH TIME.
WE LOVE FLAGSTAFF.
WE SPEND AS MUCH TIME AS WE CAN
UP NORTH AS WELL.
>> PROM IS THIS TIME OF YEAR.
ONE OF YOUR BOYS GO TO PROM?
>> YES, MY MIDDLE SON WENT TO
PROM.
HE HAD A GREAT TIME.
HE BEHAVED HIMSELF, AND, YOU
KNOW, HE BROUGHT A TERRIFIC
GIRL, AND THEY HAD A GREAT TIME.
>> DID YOU LEND HIM THE KEYS TO
THE CAR?
>> HE USES HIS MOTHER'S CAR, AND
HE KEEPS IT CLEAN, AND HE'S A
PRETTY GOOD DRIVER.
>> GOOD KID.
OKAY.
IF I A BORN IN USA, YOU SAY
WHAT?
>> I SAY BRUCE SPRINGSTEEN, HIS
ALBUM THAT CAME OUT WHILE I WAS
IN COLLEGE.
>> YOU'RE A HUGE FAN?
>> I LIKE SPRINGSTEEN.
I SAW MY FIRST CONCERT WHEN I
WAS A SOPHOMORE IN HIGH SCHOOL
AT CHRYSLER ARENA IN DETROIT
MICHIGAN.
I WENT TO HIS MOST RECENT
CONCERT.
I'VE BEEN ABLE TO TAKE MY WIFE.
SHE'S FINALLY BECOME A FAN, AND
ALL THREE OF MY SONS HAVE BEEN
DO CONCERTS AND THEY ENJOY HIM
AS WELL.
HE'S 67 YEARS OLD, AND HE STILL
DELIVERS THE MOST BANG FOR THE
BUCK.
IT'S THE GREATEST SHOW ON EARTH.
>> YOU LIKE STRAWBERRY BLONDES.
>> IN TERMS OF ICE CREAM OR?
>> THAT'S WHAT I'M TALKING
ABOUT.
>> YEAH.
WE CALLED ONE OF OUR ICE CREAMS
AT COLD STONE THAT.
>> WHICH IS YOUR FAVORITE OVER
AT COLD STONE?
>> I LOVE CHOCOLATE DEVOTION.
I LIKE IT IN A CHOCOLATE-DIPPED
WAFFLE CONE, SOMETIMES DIPS IN
REESES PEANUT BUTTERCUPS OR
THOSE KINDS OF THINGS.
WE'D HAVE SKOR BARS OR ANYTHING
THAT WAS CHOCOLATE I LOVED
INSIDE THE STORE, AND I WOULD
ADD TO IT.
TO THIS DAY, THAT'S MY WEAKNESS
IS CHOCOLATE AROUND THE HOUSE.
>> ARE YOU A CUP OR A CONE KIND
OF GUY?
>> I'M A CONE GUY.
I THINK YOU SHOULD HAVE YOUR ICE
CREAM IN A CONE.
I THINK IT SHOULD BE A
FRESH-BAKED WAFFLE CONE AND
PREFERABLY CHOCOLATE-DIPPED.
>>> AND THAT'S OUR PROGRAM.
NEXT WEEK, JOIN US FOR THE
PERSONAL STORY OF A YOUNG MOM
DIAGNOSED WITH BREAST CANCER.
"ARIZONA WEEK" FEATURES JACKIE'S
STORY, THE FIGHT OF HER LIFE.
FOR ALL OF US AT ARIZONA PUBLIC