>>> 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