Journalists’ Roundtable 01/13/17

Join us as three local journalists bring you up to date on the news of the week.

Transcript:

TED: GOOD EVENING AND WELCOME TO "ARIZONA HORIZON'S JOURNALISTS' ROUNDTABLE." I'M TED SIMONS. JOINING US TONIGHT: JEREMY DUDA OF THE ARIZONA CAPITOL TIMES. BOB CHRISTIE OF THE ASSOCIATED PRESS, AND LUIGE DEL PUERTO OF THE ARIZONA CAPITOL TIMES. GOVERNOR DOUG DUCEY RELEASED HIS BUDGET PLAN TODAY. THERE IS SO MUCH TO GO OVER TODAY. JEREMY, SURPRISES, SHOCKS? WHAT DO WE SEE?

JEREMY DUDA: IT'S A CASE BY CASE PROGRAM. STATE OF THE STATE MONDAY. TALKED ABOUT BEAUTIFUL PROGRAMS HE WANTED TO SPEND MONEY ON. ALL WEEK WE HAVE BEEN HEARING, WE HAVE TO WAIT UNTIL FRIDAY TO SEE THE GOVERNOR'S BUDGET. TODAY IS FRIDAY. WE SEE MORE SPENDING THAN SOME OF US ANTICIPATED. THE JOINT BUDGET COMMITTEE SAID $24 MILLION. GOVERNOR DOUCEY HAS $176 MILLION IN NEW SPENDING. $83 MILLION IS ONGOING. THE BULK IS GOING TO K-12 FOR A WIDE VARIETY OF INTERESTING PROGRAMS.

TED: $9.8 BILLION BUDGET WILL SUPPOSEDLY END WITH A $17 MILLION SURPLUS. BETWEEN NOW AND THEN, AS JEREMY MENTIONED, DID THE NUMBERS MEET EXPECTATIONS?

BOB CHRISTIE: I THINK SO. THERE WAS CONCERN IN THE LEGISLATURE AFTER MONDAY'S STATE OF THE STATE ADDRESS WITH 15 NEW INITIATIVES. EVERYONE KNOWS THE SCHOOLS IN THIS STATE HAVE FINANCIAL PROBLEMS EVEN AFTER LAST YEAR'S VOTER APPROVED INITIATIVE WHICH GIVES THEM SEVERAL HUNDRED MILLION DOLLARS A YEAR IN NEW CASH, SO WHEN THE GOVERNOR SAID HE WANTED TEACHER SALARY IN PLACE, TEACHER ACADEMY SO STUDENTS COME OUT OF UNIVERSITY WITHOUT DEBT, EVERYONE WAS TICKING OFF OF THOSE ON THE BACK OF THE ENVELOPE GOING THERE'S $20 MILLION. THERE'S $50 MILLION. WHAT THE GOVERNOR DID WAS NUANCED. IT'S $114 MILLION IN NEW K-12 SPENDING. IT'S SPLIT AMONG A SERIES OF THINGS. NO ONE ITEM GETS IT WITH FIXING THIS.

TED: $114 MILLION FOR K-12 NEXT YEAR. $76 MILLION MORE FOR K-12 PER PUPIL SPENDING, KEEPING UP WITH STUDENT GROWTH IN ADDITION TO PROP 123 MONEY AS WELL. IS THAT WHAT WAS EXPECTED?

LUIGE DEL PUERTO: I THINK WHAT'S EXPECTED IS THAT THERE IS GOING TO BE MORE MONEY FOR K12. FOR DEMOCRATS, THEY'LL LIKELY SAY IT'S NOT ENOUGH. THE TEACHER PAY ONE BIG COMPONENT OF THE GOVERNOR'S SPEECH MONDAY, THE GOVERNOR IS PUTTING IN $40 MILLION THIS YEAR. THAT TRANSLATES, IF THE MATH IS CORRECT, $225 PER AVERAGE PAY INCREASE FOR TEACHERS. YOU HAVE THE TEACHERS SAYING THAT'S NOT ENOUGH. YOU WANT TO KEEP TEACHES IN THE CLASSROOM. IT'S NOT ENOUGH IF YOU WANT TO CULTIVATE THE PROFESSION IN OUR STATE.

JEREMY DUDA: THE TEACHER PAY, PROBABLY THE BIGGEST APPLAUSE LINE OF THE GOVERNOR'S SPEECH, WE ARE GOING TO VALUE OUR TEACHERS, SHOW THEM WHAT THEIR WORK IS WORTH TO US. PROBABLY NOT ENOUGH AS THE GOVERNOR OR LEGISLATURE WILL LIKE. 2% OVER FIVE YEARS, .4% OVER FIVE YEARS. IT'S REALLY LESS THAN A DOLLAR A DAY. THE WAY HE PUT IT, I NEVER HAD A TEACHER TELL ME IF ONLY I WAS MAKING ANOTHER DOLLAR A DAY, I COULD REALLY MAKE ENDS MEET. AS FAR AS ATTRACTING TEACHERS IN THE PROFESSION, I DON'T KNOW HOW FAR THAT WILL GO. WE HAD A THOUSAND DOLLARS SIGNING BONUS FOR TEACHERS GOING TO LOW INCOME SCHOOLS. IT'S SMALL INCREMENTAL THINGS.

TED: 2% OVER FIVE YEARS, 180 SOME ODD MILLION DOLLARS PER YEAR FOR THE FIRST YEAR, FIRST PHASE, $100 PER TEACHER PER TEACHER. THAT'S NOT MUCH.

BOB CHRISTIE: CORRECT. THE AVERAGE TEACHER IN THIS STATE MAKES $48,000. IF YOU ARE MAKING $50,000 AFTER FIVE YEARS, YOU WILL MAKE $51,000. TO GIVE THE GOVERNOR CREDIT, THE STATE NORMALLY DOESN'T EARMARK MONEY FOR TEACHER INCREASES. EVERY YEAR, THERE IS AN INFLATION ADJUSTMENT WHICH GOES TO THE SCHOOLS TO USE FOR THE ADDED COSTS TO GIVE TEACHERS RAISES, BUY BOOKS, PAY FOR ELECTRICITY BILLS. THIS MONEY IS ON TO HAVE OF WHAT THE DISTRICTS GIVE WITH NORMAL INFLATION INCREASES WHICH IS A HEFTY SUM END OF THE YEAR.

LUIGE DEL PUERTO: AT THE END OF THE DAY, IT ALL ADDS UP. 800 OR $900,000 IN INCREASE OVER FIVE YEARS. BY THE FIFTH YEAR YOU GET A THOUSAND DOLLARS INCREASE. ON TOP OF THAT, THERE IS A SIGNING BONUS IF YOU GO TO A LOW-INCOME SCHOOL. IF YOU ARE A NEW TEACHER, PRESUMABLY, YOU GET THAT DEGREE WITHOUT HAVING TO PAY TUITION. YOU WILL SEE THE GOVERNOR PUSH THE DAY THAT AT THE END OF THE DAY, THIS IS STILL A LOT FOR TEACHERS. IF YOU LOOK AT SINGLE PIECES, MAYBE NOT A LOT, BUT COLLECTIVELY, IT'S GOOD FOR TEACHERS.

JEREMY DUDA: IN THE STATE, AS WE KNOW, THERE IS NOT A LOT TO GO AROUND. THIS IS AN INCREMENTAL APPROACH SPREAD OUT OVER A LOT OF DIFFERENT THINGS NOT JUST TEACHERS, FULL DAY KINDERGARTEN. THIS WAS AN AREA THAT GOVERNOR DUCEY ADDRESSED IN HIS SPEECH AND IN THE BUDGET. WE HAVE SEEN IN THE PAST SIX MONTHS THE COALITION OF EDUCATORS PREPARING TO MAKE A BIG PUSH THIS SESSION, AN EXPENSIVE PROGRAM THEY WANT PHASED IN. GOVERNOR DUCEY CREATING A FULL DAY KINDERGARTEN PROGRAM IN LOW-INCOME SCHOOLS.

BOB CHRISTIE: IT'S 8,000 KIDS THAT ARE EFFECTED. SOME COME UP WITH WAYS TO PAY FOR IT AND HAVE IT IN PLACE. LITERACY RATES ARE HELPED BY HAVING FULL DAY KINDERGARTEN IS WHERE THE GOVERNOR IS TARGETING THE MONEY. IF THEY HAVE FULL DAY KINDERGARTEN, THEY CAN USE THE EXTRA MONEY THEY GET TO ADD LITERACY PROGRAMS. IT'S TARGETED, BUT IT CHECKS OFF A BOX ON WHAT THE GOVERNOR WANTS TO DO WITH EDUCATION.

JEREMY DUDA: THE COALITION PUSHING THIS, I DON'T KNOW HOW HAPPY THEY'LL BE. THIS IS A START WHICH IS WHAT THEY HAVE BEEN TELLING ME. PITCHING LOW-INCOME SCHOOLS AS A FIRST STEP. WE HAVE SEEN NO COMMITMENT TO FUTURE STEPS. I PRESUME THIS IS NOT GOING TO HELP THE FISCAL SITUATION IN COMING YEARS. THIS COULD BE IT. MAYBE NOT.

LUIGE DEL PUERTO: YOU HAVE TO PUT IT INTO CONTEXT. THE GOVERNOR'S OFFICE IN PROMISED TO CUT TAXES EVERY YEAR WHILE GOVERNOR. THIS YEAR HE IS PROPOSING THE SMALLEST TAX CUT -- HIS THIRD YEAR IN OFFICE, $2.8 MILLION IN TAX CUTS. IN TERMS OF THE OVERALL BUDGET, IT'S NEGLIGIBLE. PRESUMABLY, THAT MEANS GO TO THE TEACHER AND SAY, LOOK, EVEN MY OWN PRIORITIES, I'M NOT PUTTING TOO MUCH MONEY INTO THOSE. I'M TRYING TO GIVE YOU THE FINANCIAL CONSTRAINTS WE HAVE. TAKE WHAT YOU HAVE AND WE'LL HAVE THE CONVERSATION NEXT YEAR.

BOB CHRISTIE: ON TAXES, THE THING LOST WITH THAT, THE GOVERNOR IS ASKING FOR A RELATIVELY SMALL TAX DECREASE. EVERY YEAR, THE GOVERNOR PROPOSES A SMALL DECREASE. THEN YOU SEE FIVE OR SIX OR TEN PIECES OF LEGISLATURE THAT HELPS THE CROP DUSTERS OR SOME SPECIAL INTEREST GROUP AND WE HAVE 20 TO $30 MILLION TAX CUTS PASSED EVERY YEAR.

TED: DOES HE DO WHAT GOVERNOR BREWER DID AT TIMES SAYING I'M NOT GOING TO LET THIS GO THROUGH BECAUSE IT DOESN'T BALANCE THE BUDGET? IT'S KILLING WHAT WE ARE TRYING TO DO HERE?

BOB CHRISTIE: THEY ALL GET HELD BY THE SPEAKER OF THE CORPORATION CHAIR UNTIL THE BUDGET IS DONE. THEY DON'T MAKE IT UNTIL THE BUDGET IS DONE. THERE IS A NUMBER ATTACHED TO ALL OF THEM. WE DECIDE TO HAVE $25 MILLION IN TAX CUTS. IT'S NOT WILLIE NILLY, WELL THOUGHT OUT, ALL IN THE BUDGET, WELL NEGOTIATED BETWEEN THE SENATE PRESIDENT AND BROADER AUDIENCE THIS YEAR.

LUIGE DEL PUERTO: YOU ARE RIGHT. THIS ISN'T HAPPENING IN AND OF ITSELF. THE CONTEXT IS THAT WE HAVE BEEN CUTTING TAXES MANY, MANY YEARS NOW. WE HAVE PRETTY MUCH GIVEN HUNDREDS OF MILLIONS EVERY YEAR. I THINK YOU WILL SEE THE DEMOCRATS, TEACHER UNIONS, ADVOCATES SAY, IF YOU ARE SERIOUS ABOUT FUNDING K-12, YOU SHOULD LOOK AT REFORMING THE TAX CODE IN PARTICULAR LOOKING AT TAX CUTS YOU HAVE MADE.

TED: SPEAKING OF TAXES, NO COMMENT, NO MENTION OF PROP 301, THE SALES TAX ENDS MID 2020. SOMETHING HAS TO BE DONE BETWEEN NOW AND THEN.

JEREMY DUDA: WE HAVE TIME TO WORK ON THIS. THE YEARS ARE TICKING AWAY. LEGISLATIVE DEMOCRATS ARE MAKING THIS A PRIORITY. THIS IS GOING TO HAVE TO BE, WE'LL RE-UP OR START MAKING SERIOUS K-12 DISCUSSIONS. DEMOCRATS TALK ABOUT MAKING THAT A FULL SET. I DON'T KNOW HOW YOU GET THAT PAST THE REPUBLICAN CONTROLLED LEGISLATURE. I'M SURE WE'LL SEE A PUSH FOR RENEWAL.

LUIGE DEL PUERTO: I THINK END OF THE DAY THEY ARE FORCED TO LEAD THE FIGHT TO MAKE SURE THE TAX DOESN'T GO AWAY. IT DOESN'T MAKE SENSE FOR THIS KIND OF REVENUE GOING AWAY. JEREMY IS RIGHT. WE HAVE A COUPLE -- SOME TIME LEFT TO -- IF WE WANT TO STRAIGHT RE-UP OR SOMETHING ELSE. THERE IS A BIT OF TIME, BUT TIME IS RUNNING OUT.

JEREMY DUDA: NO ELECTION THIS YEAR, SO YOU CAN TAKE THAT BACK TO 2018 AS WELL.

BOB CHRISTIE: THE REASON WE ARE SPENDING SO MUCH TIME ON K-12, IT'S $4.2 BILLION PROPOSED THIS YEAR. $4.2 BILLION TO K-12 SCHOOLS. THAT'S A HUGE NUMBER. 1.1 MILLION SCHOOL KIDS IN THIS STATE THAT BENEFIT FROM THE MONEY. THAT'S WHY IT'S A HUGE PART OF THE DISCUSSION.

TED: REAL QUICK I WANT TO GET TO THE UNIVERSITY. THAT'S A WHOLE DIFFERENT DISCUSSION. $37 MILLION SALES TAX DIVERTED $30 MILLION USED AS FAR AS NEW BONDING IS CONCERNED. THE OTHER $7 MILLION, THE GOVERNOR SAYS DO WHAT YOU WANT BUT I THINK HE HAS A GOOD IDEA WHAT HE WANTS TO SEE DONE WITH IT.

JEREMY DUDA: WITH THE MATCH FROM THE UNIVERSITY, ACCORDING TO THE GOVERNOR'S OFFICE, UNLOCK A BILLION DOLLARS IN BONDING CAPACITY. I'M SURE THE UNIVERSITY PRESIDENTS HAVE GOOD IDEAS HOW THIS MONEY IS GOING TO BE SPENT. THE $7 MILLION, THIS GOES BACK TO SOMETHING THE GOVERNOR MENTIONED IN HIS STATE OF THE STATE, THE ARIZONA TEACHER ACADEMY, TUITION FREE, DEBT FREE, GETTING PEOPLE TRAINED TO BE TEACHERS. THERE IS NO FUNDING IN THE BUDGET FOR THIS. THE PLAN IS TO TELL THE UNIVERSITY, I THINK YOU SHOULD COME UP WITH A PLAN FOR THIS. WE'LL GIVE YOU BACK THE EXTRA $7 MILLION TO USE FOR OTHER EXPENSES. IT'S SOMETHING TO LOOK AT WHERE TO SPEND THAT.

TED: TAKE THE HINT.

LUIGE DEL PUERTO: RIGHT. THE PRESUMPTION IS THE UNIVERSITIES HAVE A BILLION DOLLARS IN BONDING CAPACITY. THAT FREES UP MONEY FOR OPERATING EXPENSES RIGHT NOW THAT ARE GOING TO BUILDING RENEWAL, BUILDING REPAIR MAINTENANCE. FREE UP THE MONEY TO USE IT FOR SOMETHING ELSE. IT IS CORRECT THAT THERE IS NO PLAN FOR THE TEACHER ACADEMY. IT'S NOT IN THE BUDGET. THERE IS NO MONEY FOR IT. I THINK THEY WANT IT DONE OR AT LEAST THE BEGINNING OF IT, THE ROOTS OF IT IN PLACE BY THIS FALL, WHICH -- YOU KNOW, IT'S A TOUGH HILL TO CLIMB AT THIS POINT. WE'LL SEE IN THE NEXT COUPLE OF WEEKS IF THIS IS DOABLE OR NOT.

TED: BOB, WHEN $37 MILLION SALES TAXES ARE DIVERTED, THAT MEANS SOMEONE WHO GOT $37 MILLION IS NOT GETTING THE $37 MILLION ANYMORE.

BOB CHRISTIE: THAT'S BUDGET MATH. THE STUDENT STORE AND ALL OF THEIR ENTERPRISES, EVERY TIME THEY SELL A CANDY BAR, THEY PAY SALES TAX AND THAT GOES TO THE STATE AND $7 MILLION TO THE CITIES. FLAGSTAFF AND TEMPE AND TUCSON LOSE THAT. THE UNIVERSITIES WILL USE IT TO PAY BOND DEBT, LEVERAGE THAT AND HOPEFULLY, I SUPPOSE, THE ECONOMICS YOU LOVE SO MUCH -- AFTER THE BUILDINGS ARE BUILT, WE'LL HAVE MORE ECONOMIC ACTIVITY.

TED: HOW IS THIS GOING TO GO OVER. THE CITIES AND TOWNS GETTING WHAT THEY WERE GETTING BEFORE. ARE THE LAWMAKERS GOING TO BE HAPPY ABOUT THIS?

LUIGE DEL PUERTO: THEY'LL BE RESISTANT TO THE IDEA OF $7 MILLION FUNDING GOES TO THEM. I THINK THEY WOULD BE THEY WOULD WELCOME THE IDEA. THE UNIVERSITIES, DESCRIBING THEM AS THE NEGLECTED CHILD OF THE STATE, REGARDLESS WHERE THE MONEY COMES FROM, IT'S COMING FROM THE GENERAL FUND. THAT MONEY'S NOT GOING SOMEWHERE ELSE. IT'S REAL MONEY FOR THE UNIVERSITIES. IF THEY ARE ABLE TO BOND UP TO A BILLION DOLLARS, THAT FUNDS A LOT OF R&D FACILITIES. THIS MONEY IS REAL FOR THEM. WHAT WE ARE SEEING IN THE BUDGET IS A REAL EFFORT BY THE GOVERNOR'S OFFICE TO SAY, WE WANT TO GIVE YOU SOMETHING, PUT IN A PATH TO SUSTAINABILITY. HERE IS THE MONEY. USE THIS.

BOB CHRISTIE: THEY SAID THIS IS A GREAT THING. THEY GAVE THE UNIVERSITIES 90 DAYS, MID MARCH AROUND BUDGET TIME. THEY ARE UNDER PRESSURE TO PRODUCE. I ASKED THE GOVERNOR ABOUT THIS DURING THE BRIEFING. YOU ARE NOT GIVING THEM MONEY. HOW DO YOU EXPECT THEM TO DO THIS? HE SAID THEY CAN SHIFT THE MONEY AROUND. THE IDEA IS TO GET TEACHERS OUT OF COLLEGE WITHOUT 30 TO $80,000 WORTH OF DEBT. IF YOU COMMIT YOURSELF TO FOUR YEARS EDUCATION AND WORKING IN A SCHOOL FOR FOUR YEARS, YOU WON'T HAVE SCHOOL DEBT. ANYONE WITH A KID IN COLLEGE KNOWS IT'S A HUGE PROBLEM.

TED: WE HAVE EDUCATION COVERED. IT'S A MAJOR FACTOR IN THE BUDGET. PROP 206, INCREASE OF THE MINIMUM WAGE, MUCH TALK HERE. EVERYTHING IN THE BUDGET, ALL SURPLUSES WE HAVE MIGHT BE EATEN UP BECAUSE WE HAVE TO PAY PEOPLE MORE DUE TO PROP 206. IS ANYTHING IN THE BUDGET CORRESPONDING TO PROP 206.

JEREMY DUDA: THE GOVERNOR'S OFFICE FEELS THERE'S MONEY TO DO. THERE ARE OTHER PRIORITIES, THE BUDGET COMMITTEE MIGHT HAVE OTHER IDEAS ABOUT HOW MUCH MONEY THIS IS AND HOW MUCH IS GOING TO BE TAKEN UP. THERE IS NO CHOICE FOR THEM TO DO THIS. THE LEGISLATIVE LEADERS HAVE BACKED THEMSELVES INTO A CORNER HERE. WE HAVE TO PAY THIS. IT'S AN EXPENSE ON THE STATE. NOW THAT THEY SAY THIS IS MANDATED, IT'S THE LAW, WE HAVE NO CHOICE, THEY HAVE TO PUT THE MONEY IN. IT'S $8 MILLION FOR THIS FISCAL YEAR AND ANOTHER 21 IN 2018 FOR SERVICE PROVIDERS, FOLKS THAT PROVIDE CARE FOR THE DEVELOPMENTALLY DISABLED, THINGS LIKE THAT.

BOB CHRISTIE: THE CURRENT BUDGET YEAR ENDING JUNE 30TH, $7.7 MILLION OR $36 MILLION, 7.5 OF THAT IS TO COVER THE INCREASED COSTS TO STATE FOR PAYING SERVICE PROVIDERS HIGHER MINIMUM WAGE, NURSING HOMES, AND DEVELOPMENTALLY DISABLED AIDES.

LUIGE DEL PUERTO: THE BUDGET MAKING PROCESS, PARTLY SCIENCE, BUT MOSTLY ART. IT'S CREATIVE THINKING. IF THERE IS A WILL OR IF THERE IS A DUCEY, THERE'S A WAY, IF YOU WILL. WE ARE SEEING, AND JEREMY IS RIGHT. FOR PEOPLE THAT DON'T LIKE THE VOTERS TIEING THEIR HANDS TO SAY YOU HAVE TO FUND THIS, THEY HAVE TIED THEIR HANDS PROPOSITION 206. WE ARE SEEING A DIFFERENCE BETWEEN THE GOVERNOR'S BUDGET REVENUE. THOSE HAVE TO BE RECONCILED. THEY ARE COMING UP WITH A BIGGER REVENUE AMOUNT, DIFFERENCES IN CASE LOAD GROWTH AND HOW TO FUND THOSE. AT THE END OF THE DAY, IT'S ART. THEY'LL HAGGLE. THEY'LL COME UP WITH SOMETHING THAT SATISFIES BOTH THE GOVERNOR'S OFFICE AND LEGISLATURE.

JEREMY DUDA: MORE THAN THE GOVERNOR'S NUMBERS. THEY MIGHT FIGHT ABOUT WHERE THE MONEY IS COMING FROM AND GOING. REPUBLICANS SEEM AMIABLE TO WHATS DUCEY IS DOING. ONE THING THEY ARE NOT ONBOARD WITH, THE CUTS FOR ROADS, THAT'S GOING AWAY THIS YEAR.

TED: I THOUGHT THE CONTROVERSY WAS OVER.

BOB CHRISTIE: IT WAS A ONE TIME EXPENDITURE. WE SHOULDN'T THINK IT'S SUPPOSED TO BE ONGOING. IT'S $87 MILLION TO FIX IT LAST YEAR. THAT MONEY IS NOT IN THE GOVERNOR'S BUDGET. INSTEAD, THE DEMOCRATS AND I'M SURE THE CITIES AND TOWNS WILL PROBABLY SAY, YOU ARE USING THE MONEY THAT'S SUPPOSED TO FIX OUR ROADS WHICH ARE CRUMBLING, AND USING IT FOR SCHOOLS. THAT'S ALL WELL AND GOOD, BUT WE DIDN'T SAY EITHER OR.

TED: THOSE LAWMAKERS WITH THE BIGGEST PROBLEM WITH THAT ARE RURAL LAWMAKERS. THEY ARE NOT GOING TO SIT STILL FOR THIS.

BOB CHRISTIE: NO, MARICOPA COUNTY HAS THE ABILITY TO FIX THEIR ROADS BUT OTHER COUNTIES RELY ON THE GAS MONEY TO KEEP YOUR ROADS UP. THAT WAS TAKEN SIX OR EIGHT YEARS AGO TO FUND THE STATE HIGHWAY PATROL. RURALS FIGHTING FOR THREE YEARS TO GET IT BACK. THEY GOT THE PLAN IN PLACE. THE NEXT YEAR, THEY HAD TO NEGOTIATE IT AGAIN. LAST YEAR, $87 MILLION. IT'S AN ONGOING FIGHT.

TED: COULD THAT BE A STUMBLING BLOCK?

BOB CHRISTIE: YOU DARNED STRAIGHT IT IS.

LUIGE DEL PUERTO: WE'LL PROBABLY HAVE A PROBLEM WITH THIS. IT'S NOT FROM MARICOPA COUNTY. THE INFLUENCE IN THE LEGISLATURE THAT ARE REPUBLICANS, THEY ARE NOT GOING TO BE HAPPY AT ALL.

JEREMY DUDA: THE GOVERNOR IS GOING TO HAVE TO GIVE THEM SOMETHING.

TED: IT'S ONLY BEEN A FEW HOURS NOW, BUT AS FAR AS REACTION TO THE BUDGET FROM DEMOCRATS, REPUBLICANS, WHAT DO YOU HEAR?

JEREMY DUDA: FROM THE REPUBLICAN SIDE, HERTZ SAYS THERE ARE STUMBLING BLOCKS. THEY LIKE THE PLAN TO PAY FOR THE STUFF HE TALKED ABOUT MONDAY. THIS COULD HAVE BEEN A BILLION DOLLARS IN SPENDING IF HE WANTED TO GO HOG WILD. HE'S NOT. HE'S KEEPING IT FAIRLY REALISTIC. DEMOCRATS ARE GOING TO GROUSE ABOUT THE LOW TEACHER SALARIES, THINGS LIKE THAT.

TED: WINDOW DRESSING, ALONG THOSE LINES.

JEREMY DUDA: EXACTLY. TINY, NOT DOING MUCH. THIS FALLS ALONG THE PARTY LINES. THERE WILL BE HAGGLING. FOR THE MOST PART, I THINK IT WILL BE WELL RECEIVED FOR THE REPUBLICANS.

BOB CHRISTIE: I THINK THAT'S A GOOD ANALYSIS. DEMOCRATS IN THE EDUCATION COMMUNITY AND BUSINESS COMMUNITY, THE LEADER OF THE GOVERNOR FIRST COMMUNITY SAID WE HAVE TO TALK SERIOUSLY ABOUT REVENUE IN THE STATE. TO BRING OUR TEACHERS UP TO THE MEDIAN AVERAGE, 6 TO $7 MILLION A YEAR. THAT'S FROM A REPUBLICAN BUSINESSMAN THAT RAN THE COMMISSION THAT THE GOVERNOR SET UP. WE ARE IN THE WORLD WE ARE WITH THE REPUBLICAN GOVERNOR WHO WON'T RAISE TAXES, WON'T SIGN OFF ON TAX INCREASES AND REPUBLICAN LED LEGISLATURE. THEY ARE GOING TO TRY TO DO WHAT THEY CAN WITH THE MONEY THEY HAVE AND HOPE IT GETS US BY.

LUIGE DEL PUERTO: IF THEY CAN GET OVER THE HUMP REGARDING FUNDS, I THINK THE GOVERNOR WILL GET MOST OF WHAT HE'S ASKING FOR IN THE BUDGET. YOU WILL SEE THE DEMOCRATS CRITICIZE PARTS OF IT. AT THE END OF THE DAY, IT'S PAY RATES FOR TEACHERS MORE MONEY FOR SCHOOLS, THE DIRECTION WE WANT TO FOCUS ON K-12 EDUCATION. A WHOLE LOT OF MONEY FOR HIGHER EDUCATION ASSUMING YOU GET THE $1 BILLION BONDING CAPACITY. YOU WILL SEE DEMOCRATS SUPPORT THE BUDGET.

TED: MODEST TAX CUT SLOW SPENDING GROOVE.

JEREMY DUDA: THAT SUMS IT UP. INCREMENTAL.

TED: THANK YOU SO MUCH.