>> Ted: THANK YOU FOR JOINING US.

THIS WILL BE HEAVY WHAT WILL HAPPEN ON MONDAY.

WHAT'S GOING TO HAPPEN ON MONDAY?

>> THE SUN WILL RISE AND THE GOVERNOR AND LAWMAKERS WILL SHOW UP AT THE STATE CAPITOL.

THEY'LL BEGIN THEIR SESSION AND AT 2:00, SHE'LL GIVE HER STATE OF THE STATE ADDRESS AS THE CONSTITUTION REQUIRES.

>> Ted: AS FAR AS THE SESSION ITSELF, WILL FIRE, WHAT DO YOU THINK YOU'LL SEE IN.

>> THERE?

>> SOME THINGS WE NEED BUT THE AUTOMATIC RECOUNT LAW AND WHAT TO DO ABOUT PROP 1, 2, 3 WHICH IS EXPIRING AND THE OVERARCHING THING IS WHAT ARE RELATIONS ARE BETWEEN THE GOVERNOR AND REPUBLICAN CONTROLLED LEGISLATURE AFTER A YEAR OF HAVING TO KNOW EACH OTHER.

AND BECAUSE OF THE REDUCTIONS, IT WILL BE A BIG THING.

>> Ted: CAMRYN, HOW WILL THAT RECORD BE?

WE HAD VETOES LAST YEAR.

>> YOU PUT FORWARD GOALS THAT MAKE YOU LOOK GOOD WHERE YOU TRY TO.

I DEFINITELY EXPECT IT EXPECT IT TO BE VETOED AGAIN AND REPUBLICANS INTRODUCING THEM AND THE BUDGET, THE BUDGET WILL BE AS ALWAYS, A BIG ISSUE BECAUSE IT HAS TO HAVE BIPARTISAN SUPPORT AND HAS TO GET TO THE GOVERNOR AND THE REPUBLICAN CONTROLLED LEGISLATURE.

AND THIS YEAR, WE'LL HAVE TO MAKE CUTS.

THEY MAY BE TEMPORARY, SO THE BUDGET WON'T BE LIKE LAST YEAR WHEN WE HAD A SURPLUS AND EVERYONE HAD MONEY TO SPEND.

>> Ted: WE'LL GET TO THE BUDGET IN A SECOND, BUT AS FAR AS THE REPUBLICAN SENDING OVER NO-CHANCE BILLS, A LOT OF ACTIVITY AND WHAT DO YOU THINK?

>> THERE'S A DESIRE TO TRY TO MAKE THOSE POINTS AND I KNOW YOU'VE HAD HOUSE SPEAKER BEN TOMA SAYING WE MADE OUR STATEMENT AND WE DON'T NEED TO DO THIS ALL OVER AGAIN IF WE KNOW WHERE I WILL HAPPEN.

IT WILL BE A DISTRACTION AND GETS US AWAY FROM GETTING OUT OF HERE IDEALLY IN 1 HIM 100 DAYS.

BEN TOMA IS RUNNING FOR A CONGRESSIONAL DISTRICT AND HE TRIES TO TAMP THAT DOWN.

A LOT OF IT WAS DICTATED BY THE FREEDOM CAUCUS WHICH WAS THE LAWMAKERS.

THEY HAVE A MAJORITY OF BOTH CAUCUSES.

IF THEY DECIDE THAT THEY WANT TO PUT THAT FORWARD AND GO TO THE FORUM, YOU'LL SEE LEADERSHIPS MAKING A DECISION OF HOW MANY THINGS THEY WANT TO STAY OUT OF THE WAY OF AND LET'S GET ANOTHER VETO.

>> Ted: TOMA'S CONGRESSIONAL RUN, IS HE GOING TO SAY, LET'S GET OUT OF HERE QUICKLY OR HE CAN'T AFFORD TO SAY NO, BECAUSE THERE'S WILD CANDIDATES RUNNING AGAINST HIM.

>> BUT IT WILL DRIVE SOME THINGS DOWN, BUT AS YOU POINTED OUT, HE HAS A NARROW PATH TO WALK BECAUSE HIS PRIMARY IS -- YOU DO WANT TO APPEAL TO MORE CONSERVATIVE VOTERS.

ONE OF HIS SUPPORTERS HAS A TRUMP ENDORSEMENT.

HE'LL SPEND A FAIR AMOUNT OF TIME AT THE CAPITOL.

>> Ted: INTERESTING.

AND BACK TO THE IDEA OF EVERYONE KIND OF KNOWING.

LAST YEAR NO ONE KNEW HOW THIS DYNAMIC WAS AND A FIRST DATE.

>> A LOT OF REPUBLICANS REPUBLICANS ARE SAYING THEY WANT TO GET IT OUT OF THE WAY BEFORE THEY DO ANY NORMAL BILLS AND THE GOVERNOR DOESN'T WANT TO DO THAT.

SO THEY'RE ALREADY DOING THAT.

BUT I THINK THEY TRY TO GET ALONG UNTIL THEY DON'T.

>> Ted: STICKING WITH THE BUDGET, AGAIN, LAST TIME AROUND ONE GOT A SURPLUS AND THIS TIME, A NO SURPLUS AND 400 SOME ODD MILLION DOLLARS COULD THAT ACTUALLY.NO CHANCE FOR THAT AND LET'S MOVE ON?

>> LAST YEAR WHEN WE HAD A SURPLUS, LAWMAKERS GOT AN ALLOWANCE AND G.O.P LAWMAKERS EACH HAD MONEY TO SPEND ON PERSONAL PROJECTS OR PRIORITIES AND THAT WAS ACTUALLY A NICE INCENTIVE AND POPULAR BUT THIS YEAR, NOBODY GETS AN ALLOWANCE AND THAT'S HARDER BECAUSE YOU DON'T GET THE INCENTIVE AND THERE'S LESS TO GO AROUND AND LESS TO ARGUE FOR, SO YOU COULD SEE IT GOING IN THE OTHER DIRECTION.

HOPEFULLY EVERYONE AGAINS ALONG GOES ALONE.

>> Ted: A LOT OF CLAW-BACK BE HUH?

>> WHAT WE'RE HEARING IS THAT THIS BUDGET IS NOT STRUCTURAL AND SHIFTED AND THE TAX REVENUES HAVE DROPPED OFF AND IT'S NOT A MATTER OF OUTPACING PERMANENT REVENUES.

THERE'S A LOT OF OPPORTUNITY TO CLAW THAT BACK.

IF YOU LOOK AT THE INFRASTRUCTURE, THE HIGHWAY STUFF, THEY TOOK THAT TO ACCELERATE PROJECTS AT THE DEPARTMENT OF TRANSPORTATION.

THEY COULD DECELERATE THAT AND TAKE THE MONEY BACK.

THE BIG ISSUES ARE ONE -- ASIDE FROM THAT, ONE-TIME ACCOUNTING MANEUVERS THAT THEY CAN USE THAT THEY HAVEN'T EXHAUSTED FROM THE LAST TIME WE HAD.

SO IT'S BACK IN THE BREWER ERA AND THE BEGINNING OF THE DUCEY ERA.

>> Ted: AS FAR AS TARGETS, AND CAMRYN, AS FAR AS TARGETS, CITY AND TOWNS WILL SEE ACTION AND WHO IS IN THE BULLSEYE?

>> TO GET CUT?

>> Ted: YEAH.

>> IT'S NOT NECESSARILY A PERMANENT CUT, BUT IT'S LIKE WE CAN'T DO IT THIS YEAR AND POSTPONE IT UNTIL NEXT YEAR OR SOMEBODY TO STEP UP AND PAY FOR THINGS THEMSELVES.

BUT RATHER THAN HAVING TO, LIKE, STOP THE SALARIES OF THE DEPARTMENT PEOPLE.

MOST OF THE AGENCIES SAY THEY NEED MORE MONEY AND ALWAYS NEED THAT.

I DON'T THINK THIS WILL BE THE YEAR.

>> CITIES HAVE TOWNS HAVE TAKEN CUTS BECAUSE OF THE ELIMINATION OF THE RENTAL TAX FOR MANY CITIES AND TOWNS THAT HAD SUCH A TAX AND THEY'LL LOSE MONEY.

PHOENIX IS SAYING 70 TO $90 MILLION LOST.

IF YOU GO OFF OF YESTERDAY'S HEARING ON CAMPUS SPEECH, REPUBLICAN LAWMAKERS WANT TO CUT THE UNIVERSITY BUDGETS, ESPECIALLY ASU.

SO WATCH FOR THAT.

>> Ted: BASICALLY, DOES IT BECOME THAT KIND OF A THING WHERE THE TARGET HAS IDEOLOGICAL ASPECTS OR IS IT HELPING WITH THE BOTTOM LINE?

>> THIS IS A LEGISLATURE AND OF COURSE.

[LAUGHTER] >> Ted: HOW MUCH MORE SO THAN USUAL.

>> AS MUCH AS THE REPUBLICANS WHO HAD THEIR HANDS ON THE PURSE STRINGS WANT TO MAKE IT, RIGHT?

AT THE END EFFORT DAY, OF THE DAY, MOST STATE SPENDING GOES INTO THREE AREAS, HEALTHCARE, INTO THE ACCESS OF THE MEDICAID PROGRAM, PRISONS AND SCHOOLS.

THE LION'S SHARE, THE MAJORITY ISN'T THE UNIVERSITY SYSTEM BUT THE CASE SYSTEM.

IF YOU LOOK AT MAKING SIGNIFICANT CUTS, THAT'S WHERE MONEY HAS TO COME FROM AND THOSE ARE DIFFICULT CONVERSATIONS FOR LAWMAKERS INTO AN ELECTION YEAR.

NO ONE WANTS TO GO ON THE CAMPAIGN SAYING I CUT $3 MILLION FROM PUBLIC SCHOOLS.

ESPECIALLY FOR A REPUBLICAN MAJORITY TRYING TO RETAIN THAT MAJORITY AND MAYBE NOT THE BEST THING TO BE TAKING ON TO THE CAMPAIGN TRAIL.

>> Ted: PROP 123, EXTENDING THAT AND MONEY GOES STRAIGHT TO TEACHERS AND THIS SORT OF THING.

CAN YOU CUT OVER HERE IF YOU'RE SAYING LOOK WHAT WE'RE DOING OVER HERE?

>> SURE YOU CAN.

IT'S ALWAYS A BALANCE.

REGARDING PROP 123, WHICH FOR THE LAST DECADE HAS BEEN HELPING WITH THE SCHOOL BUDGETS AND LAWMAKERS WANT TO GO BACK TO VOTERS AND SAY HEY, WHAT IF WE SEND THAT MONEY TO TEACHER PAY RAISES?

HOBBS HASN'T SAID A LOT ABOUT IT, BUT, OBVIOUSLY, THINKS IT LACKS DETAILS.

IT WILL BE INTERESTING TO SEE WHAT KIND OF COUNTERPROPOSALS SHE MIGHT HAVE.

SHE CAN, I GUESS, TRY TO GET SOMETHING REFERRED TO THE BALLOT.

>> Ted: WHAT DO YOU THINK ABOUT THAT?

>> HOBBS SAYS SHE WANTS TO PAY TEACHERS MORE AND SHE HAD A TEACHER RETENTION GROUP WHO BASICALLY CONCLUDED THAT PAYING TEACHERS MORE MONEY WILL KEEP TEACHERS AROUND AND HOBBS WAS IN AGREEMENT WITH THAT.

BUT WITH THE DETAILS, WE'RE NOT SURE WHERE THE MONEY WILL COME FROM.

CAN HER AND THE REPUBLICANS AGREE ON THE PROP 123 THING.

THAT'S THE REPUBLICAN IDEA OF HOW TO PAY TEACHERS MORE.

>> Ted: IF YOU CAN'T AGREE ON 123, IS THAT AN UMBRELLA FOR, OK, WE CAN DO NIBBLING IN OTHER AREAS?

>> MAYBE, MAYBE.

>> Ted: I GUESS THAT'S THE WAY IT WORKS.

SPEAKING OF EDUCATION, ESA'S, WHAT WILL HAPPEN, IF ANYTHING?

>> WELL, LAST YEAR, IF YOU REMEMBER, THE GOVERNOR SHOWED UP AND SAID I WANT TO REPEAL THE UNIVERSAL SCHOOL VOUCHER PROGRAM AND THAT WAS A THUD AND WENT NOWHERE.

BEST I CAN TELL, THE GOVERNOR BROUGHT IT UP A COUPLE MORE TIMES AFTER THAT AND NEVER AGAIN.

IT WAS NOT A POLICY OF THE RESEARCH.

THIS YEAR, SHE'S GETTING AHEAD OF THE SESSION AND SAYING INSTEAD OF REPEALING IT, WE NEED TO ENACT A SERIES OF REFORMS AIMED AT ACCOUNT ABILITY A ACCOUNTABILITY AND TRANSPARENCY.

I 'DO THINK THAT WILL DON'T THINK THAT WILL GET A WARM RECEPTION AT THE CAPITOL.

THIS IS MORE SERIOUS.

LAST YEAR WAS MORE OF A NOD TO THE BASE AND WAS SOMETHING THAT WAS AIMED AT, YOU KNOW, TRYING TO SAY WHAT A LOT OF ADVOCATES SAID, WHICH IS THAT WE DON'T LIKE THIS PROGRAM.

THIS YEAR, THIS IDEA OF ACCOUNT ACCOUNTABILITY AND TRANSPARENCY TO MAKE THE PROGRAM WORK BETTER.

THERE'S A LOT OF STORIES ABOUT WHAT IT'S SPENT ON, GRAND PIANOS AND DRIVING LESSONS, DRIVING A LAMBORGHINI AND THINGS HIKE LIKE THAT.

A LOT OF THESE PROPOSALS WOULD GET AT SOME OF THE CRITICISMS PUBLIC SCHOOL ADVOCATES HAVE HAD ABOUT THE SYSTEM.

BUT THE REALITY IS THAT REPUBLICANS IN THE LEGISLATURE ARE INTERESTED IN CONSIDERING ANY OF THESE PROPOSALS.

>> Ted: NO COMPROMISE, NO WAY, NO HOW?

>> UNLESS YOU PULL IT INTO BUDGET TALKS, I DON'T SEE IT.

FIRST OF ALL, ANY OF THE GOVERNOR'S PROPOSALS, IF THEY SHOW UP, WILL BE IN DEMOCRATIC BILLS WHICH OFTEN DON'T GET ASSIGNED TO COMMITTEES.

SOW STOP IT AT THE BEGINNING.

AND EVEN IF THEY MOVE ALONG, BUT I HAVE HEARD OF NO REPUBLICANS WHO ARE INTERESTED IN DOING ANYTHING.

THE PROGRAM IS FINE AS IT'S GOING OUT.

IF YOU STARTED TO DO HORSE TRAINING OVER THE STATE BUDGET.

>> Ted: THAT EIGHT-POINT PLAN IS OUT THERE AND WILL STAY OUT THERE?

>> IF THE DEMOCRAT SAYS THE WORD EAS, THE REPUBLICANS ARE IN DEFENSE MODE.

IT WAS SUCH A HUGE WIN FOR REPUBLICANS AND KNOWS HOBBS WANTS TO DESTROY IT.

AND NO, WE DON'T WANT TO, ABSOLUTELY NOT.

>> IT'S IMPORTANT TO NOTE, BEN TOMA, THE SPEAKER, HE WAS THE SPONSOR OF THE UNIVERSAL VOUCHER BILL AND THE FIRST IN THE NATION, AS CAMRYN SAID, THE REPUBLICANS ARE PROUD SAYING THIS HAPPENED FIRST IN ARIZONA.

THEY WON'T SEEK GROUND ON THAT.

>> Ted: AS WE MENTIONED, HE IS RUNNING FOR CONGRESS AND THE TARGET UP THERE.

JIM, THE AGGREGATE SPENDING LEVEL AND QUITE THE CLIFF.

WILL SOMETHING BE DONE ABOUT THAT OR WILL IT BE YEAR-TO-YEAR?

>> THAT'S NOT AN ISSUE THAT IS ON THE TABLE RIGHT NOW BECAUSE I THINK THAT WAS ONE OF THE THINGS ADDRESSED.

>> IT WASN'T.

THE DRAMA WAS TWO YEARS AGO.

>> Ted: WAS IT TWO YEARS AGO?

>> YES.

AND LAST YEAR, THEY TOOK CARE OF IT FOR TWO YEARS RUNNING.

>> Ted: OK. >> NOW THAT SPOT WILL RUN OUT AND SOMEBODY HAS TO.

I WON WOULDN'T BE SURPRISED IF JENNIFER POLLACK BROUGHT IT UP.

>> Ted: TO CHANGE IT, MODIFY IT, WHAT?

>> THAT'S ALWAYS THE BIG QUESTION.

>> I THINK THAT'S WHERE THE DEBATE HAS MOVED TO, WHAT DO YOU DO FOR THE FUTURE AND KICKING THE CAN FAR ENOUGH THAT IT'S NOT A CRISIS EVERY TIME THEY SHOW UP AT THE CAPITOL.

>> Ted: SO NO MORE CRISIS?

>> SHE POSED ANOTHER TEMPORARY ONE AND NEVER COME UP WITH A SOLUTION.

>> Ted: CAN IS GETTING KICKED QUITE A BIT.

WATER, A LOT OF PEOPLE PONTIFICATING AND ANYTHING HAPPENING AT THE LEGISLATURE REGARDING WATER?

>> I EXPECT EXPECT SOME MOVEMENT ON WATER.

A LOT OF RECOMMENDATIONS WERE BIPARTISAN.

ALTHOUGH, SOME OF THE SENATORS, THE HEAD OF THE NATURAL RESOURCE'S COMMITTEE IN THE SENATE AND REPRESENTATIVE OF THE AGRICULTURE INDUSTRY DROPPED OUT AND SAID THEY THINK THIS IS JUST -- THESE IDEAS ARE JUST TOO FAR TO THE LEFT.

BUT WE STILL HAVE A LOT OF PROBLEMS WITH OUR WATER AND WE'VE GOT THIS THING CALLED "THE PAUSE" THAT WAS PUT ON HOME BUILDING IN THE FAR WEST AND THE FAR EAST VALLEYS.

AND I GET THE SENSE THAT THE GOVERNOR WON'T LET THAT STAND FOR A REAL LONG TIME.

WE'VE HAD SENATE PRESIDENT WARREN PETERSEN QUESTIONING, WHY DO WE HAVE THIS 100-YEAR STANDARD FOR OUR WATER SUPPLY?

AND LOOK, IT'S SENDING A BAD MESSAGE NATIONWIDE.

>> Ted: IS THIS MORE RHETORICAL?

THE GROUNDDAUGHTER GROUNDWATER ACT HAS BEEN AROUND FOREVER AND MOST THINK IT'S A GOOD THING.

>> IT HAS.

BUT IT'S EASY TO PROVE A 100-YEAR WATER SUPPLY IN AN AREA AND SUDDENLY MORE DIFFICULT, YOU HAVE THE SHORTAGES AND WHAT ARE THE ECONOMIC RAMIFICATIONS IN THAT, RIGHT?

>> Ted: RIGHT.

>> THE WHOLE THING WAS TO BOLSTER THE ECONOMICS TO CONVINCE PEOPLE IT WAS GOOD TO BE HERE AND NOT TO BUILD A HOUSE AND FIND OUT IN 20 YEARS YOU DON'T HAVE WATER.

BUILD A NEIGHBORHOOD AND YOU HAVE GHOSTTOWNS.

THAT'S WHAT THE WHOLE THING WAS INTENDED TO AVOID.

BUT WHEN YOU RUN INTO A PROBLEM THAT YOU CAN'T DO THAT, THERE ARE SEVERE SEQUENCES.

FORCONSEQUENCES.AND SUPPORTING PEOPLE FROM ANOTHER COUNTRY, AND WHEN YOU HIT THE BRAKES, YOU UPSET A LOT OF PEOPLE.

>> Ted: AS FAR AS WATER ISSUES, KICKING THAT PARTICULAR CAN DOWN THE BEACH, AS IT WERE?

>> WE HAD A FEW HUNDRED BILLS INTRODUCED AND WATER IS COMING UP THE MOST FREQUENTLY.

THERE'S LITTLE CHANGES, BUT TO GROUNDWATER IN PARTICULAR AND I THINKING EVERYBODY KNOWS IT'S A PROBLEM, EVERYBODY ON BOTH SIDES OF THE AISLE.

HOBB'S COUNCIL WANTS TO GET GROUNDWATER AND IT'S AN ISSUE IN HOUSING.

WATER AND HOUSING, WE NEED BOTH WATER AND HOUSING IN ARIZONA.

WE KIND OF NEED THOSE THINGS AND THERE'S CUTS TO DEVELOP ON THE WATER SUPPLY AND THAT MAKES THE HOUSING PEOPLE UNHAPPY.

IF YOU ALLOW BUILDING TO GO ON WITHOUT ASSURED WATER, THAT CONCERNS THE WATER FOLKS.

YOU'RE KIND OF, YOU KNOW, YOU'RE ASKING FOR TROUBLE HERE.

>> THERE SEEMS TO BE A FAIR DEGREE OF AGREEMENT ON, LIKE, DOING SOMETHING ABOUT THE WILDCAT SUBDIVISIONS ALLOWED TO BUILD IF THE METRO AREAS THAT HAVE A 100-YEAR WATER SUPPLY AND WILDCATS ARE EXDEALT FROM EXEMPT FROM THAT.

>> Ted: STATE OF THE STATE ADDRESS, WHAT ARE YOU EXPECTING TO HEAR FROM THE GOVERNOR IN TERMS OF SUB SANS SUBSTANCE AND TONE IN.

>> IN TONE, SHE'LL DO THINGS IN A BIPARTISAN WAY AND WORK WITH ANYBODY TO ADVANCE LEGISLATION THAT'S GOOD FOR THE PEOPLE OF ARIZONA.

BUT PROBABLY NOT LAYING DOWN THESE MORE STRIDENT MARKERS OR SOME OF THE POLICY POSITIONS.

LAST YEAR, SHE SAID SHE WOULD BE DEFENDING THE FREEDOM TO CHOOSE WHEN IT COMES TO ABORTION AND PEOPLE WALKED OUT ON THAT.

I THINK DON'T KNOW IF WE'LL HEAR ANYTHING THIS YEAR.

SHE'LL FIND A WAY TO VICTIM TOUCH ON TOPICS, THAT WE CARE ABOUT THESE ISSUES AND WE CAN COME TO A CONENSUS.

>> Ted: A LESS DEFIANT TONE, YOU THINK, JIM?

>> I WOULD CHARACTERIZE HER SPEECH AS DEFIANT, BUT I THINK IT WAS A MATTER OF, YOU KNOW, TRYING TO PREACH TO THE BIPARTISAN NATURE TO THE FACT SHE WAS A DEMOCRAT ELECTED IN A STATE THAT IS LARGELY ELECTED REPUBLICANS TO BE GOVERNOR.

I THINK WE'LL SEE MORE OF THAT.

I THINK IN A LOT OF WAYS, THAT'S GOVERNOR HOBB'S PERSONALITY.

BUT I'M SURE WE WILL STILL HEAR THINGS WHERE SHE WILL TAKE A FIRM STAND ON ISSUES THAT ARE IMPORTANT TO HER AND ISSUES THAT SHE SEES AS BEING VITAL FOR ARIZONA GOING FORWARD.

YOU KNOW, WHETHER THAT'S POLICY ISSUES LIKE MAYBE WATER OR REGULATION OR EDUCATION OR EVEN HEALTHCARE AND REPRODUCTIVE RIGHTS.

>> Ted: DO YOU EXPECT ANYTHING LIKE LAST YEAR, WHERE PEOPLE WALKING OUT?

>> I WOULDN'T BE SHOCKED IF THAT HAPPENS AGAIN.

I think it was surprising when it happened last year and on the reflection not as surprising given the make of the legislature and wouldn't be totally blown away.

>> Ted: TODO YOU THINK ANYTHING LIKE THIS THAT?

>> WHY NOT?

THERE WERE NO REPERCUSSIONS.

>> Ted: WHAT DO YOU ANY?

>> A STATE OF THE STATE AND I THINK EDUCATION IS GOING TO BE A HUGE PRIORITY.

MAYBE IT SKIRTS THE WHOLE, I'LL DESTROY THE WHOLE ESA THING AND TALKING ABOUT TEACHER RAISES, MAYBE.

>> Ted: WILL SHE MENTION AT ALL VETOES?

>> I DON'T KNOW.

IT MIGHT BE UNPOPULAR FOR HER TO SAY I'M SO PROUD OF MYSELF FOR GETTING TO MANY VETOES LAST YEAR AND I STOPPED THE REPUBLICANS TO A ROOMFUL OF REPUBLICAN LEGISLATORS.

MAYBE MORE TO SAY, WE GOT A BIPARTISAN BUDGET THROUGH LAST YEAR AND LET'S DO THAT AGAIN.

>> Ted: YOU KNOW, MARY JO, LOOK AT ME AND LOOK WHAT I DID, BUT IN THIS SENSE, ONE OF THE BIGGEST ACCOMPLISHMENTS IS THAT SHE DIDN'T ALLOW SO MANY THINGS TO HAPPEN.

>> RIGHT.

BUT EMPHASIZING THE NEGATIVE ISN'T A WINNING THING AND SHE'LL POINT TO OTHER THINGS THAT HAPPENED.

PRIMARILY THE BUDGET AND PROP AGREEMENT AND CANCELING THE WATER LEASES FOR THE ALFALFA FARMS.

I THINK THAT WILL BE MORE THE TONE.

I DON'T KNOW WHY YOU DRIVE UP THE VETOES.

SHE HAS THAT STAMP AND PEOPLE WILL IGNORE THAT.

>> Ted: EMPHASIZE BIPARTISAN, IGNORE THE VETOES?

>> THAT SEEMS LIKE THE MOST LIKELY PATH, BUT WHO KNOWS.

MAYBE SHE'LL JUST UPEND EVERYTHING.

>> Ted: LAST QUESTION, AS FAR AS REPUBLICAN RESPONSES TO THE STATE OF THE STATE, REPUBLICAN TONE OF LEADERSHIP.

WE TALKED ABOUT STATE-THE-STATE TONE BUT WHAT ABOUT LEADERSHIP?

>> WE HAD THREE BRAND NEW LEADERS LAST YEAR FEELING OUT EACH OTHER AND WORKING TOGETHER AS THEY NEEDED TO.

AND I THINK THEY DID A LOT OF THAT.

I EXPECT ALL THREE WILL COME INTO THIS YEAR WITH MORE EXPERIENCE UNDER THEIR BELTS AND MAYBE A LITTLE BIT MORE ABLE TO HIT THE GROUND RUNNING AND WHERE CAN WE WORK ONLY THINGS AND WHERE CAN WE NOT?

AND SO, I THINK THAT IS PROBABLY THE TONE.

I THINK WE'VE SEEN BEN TOMA SAYING WE NEED TO BE MORE MEASURED THIS YEAR AND WE REALLY RAN INTO IT HEAD LONG LAST YEAR AND LET'S BACK OFF THE MORE CULTURE WAR OR CONTROVERSIAL THINGS.

WE DON'T NEED TO DO THAT AGAIN.

I DON'T KNOW IF SENATOR PETERSEN HAS SAID THAT MUCH.

I THINK HE SEEMS MORE EAGER, GENERALLY, TO GET INTO FIGHTS.

>> Ted: WHAT ABOUT THE LEADERSHIP?

>> THE FREEDOM CAUCUS.

>> Ted: YES.

>> THE DEMOCRATS AND REPUBLICANS, ALWAYS FIGHTING AND THERE'S THE OLD SCHOOL REPUBLICANS DEALING WITH THE REPUBLICANS WHO DON'T WANT TO FALL IN LINE WITH THE REST OF THE PARTY AND HAVE THEIR OWN AGENDA.

AND THAT WOULD BE, I WOULD SAY, JAKE HOFFMAN, THE LOUDEST VOICE BECAUSE HE READS THE FREEDOM DAY CUSS.

CAUCUS.

THEY TOUTED TOMORROW OF THEIR WINS AND THE DINO COMMITTEE FROM GOING THROUGH THE USUAL PROCESS.

TAX-FREE BASE WAS A BIG WIN FOR THE FREEDOM CAUCUS AND THOSE ARE INTERESTING, TOO.

>> I THINK AN EARLY SIGN OF THIS, CAN WE ALL GET ALONG TOGETHER, IS HOW WE DEAL WITH THE ISSUE OF RAMIFICATIONS OF THE AUTOMATIC RECOUNT LAW, WHICH PASSED IN 2022 AND IMMEDIATELY PUT TO WORK IN THE 2022 ELECTIONS.

WE HAD A COUPLE OF CLOSE ELECTIONS.

IN 2024, WHAT'S THAT RACE AGAIN IN ARIZONA, FOR PRESIDENT?

AND THE WAY IT PLAYED OUT, IT COULD DISRUPT THE TIME FRAME THAT WE WOULDN'T KNOW WHICH SLATE OF PRESIDENTIAL ELECTORS TO SEND TO D.C. TO VOTE FOR PRESIDENT.

SO BOTH PARTIES HAVE A STAKE IN THIS.

WE DON'T KNOW WHO WILL WIN.

WE'LL SEE WHAT THEY CAN PULL TOGETHER ON THAT AND MIGHT BE THE FIRST BIPARTISAN VOTE OUT OF THE SESSION.

>> Ted: PANEL, GOOD TO HAVE YOU HERE.

THANKS FOR JOINING US.

I'M TED SIMONS AND THANK YOU FOR JOINING US.

YOU HAVE A GREAT WEEKEND!