>> Ted: COMING UP NEXT ON"ARIZONA HORIZON," IT'S THE JOURNALIST'S ROUNDTABLE AND A LOOK AT THE WEEK'S TOP STORIES INCLUDING KARI LAKE KICKING OFF HER CAMPAIGN.

THAT'S NEXT ON ARIZONA HORIZON.

>> GOOD EVENING AND WELCOME TO"ARIZONA HORIZON."

I'M TED SIMONS.

IT'S FRIDAY AND THAT MEANS IT'S TIME FOR THE JOURNALIST'S ROUNDTABLE AND JOINING US FOR A LOOK AT THE TOP STORIES, IS JEREMY DUDA AND RON HANSEN OF THE ARIZONA REPUBLIC AND MARY JO PITZEL.

PANEL, THANKS FOR JOINING US.

A LOT TO TALK ABOUT AND JEREMY, WE'LL TAKE ABOUT KARI LAKE KICKING OFF HER CAMPAIGN AT A HIGH-END MAGAZINE IN SCOTTSDALE.

WHAT'S THAT ALL ABOUT?

>> I'M NOT SURE WHY SHE CHOOSE THAT.

IT SEEMS LIKE AN INTERESTING BACKDROP FOR AN ANNOUNCEMENT WHERE YOU'LL APPEAL THE FOLKS ON THE BASIS OF THE ECONOMY AND FOLKS ARE NOT HAPPY WITH HOW IT'S GOING.

IF YOU CAN'T AFFORD STUFF, THEY CAN'T AFFORD TO BUY THEY WANT OR NEED, THIS WILL BE A STAPLE OF, I PRESUME, HER CAMPAIGN LIKE ANY OTHER REPUBLICAN CAMPAIGN OR CONGRESSIONAL CAMPAIGN.

I'M NOT SURE WHAT THAT WAS ABOUT.

I THINK THAT WILL BE INTERESTING, MORE INTERESTING TO US THAN THE CHATTERING CLASS AND I DON'T KNOW IF THE AVERAGE VOTER WILL NOTICE, BUT WE'LL SEE IF THAT CONTINUES MOVING FORWARD, IF THAT'S THE THEME.

>> Ted: YOU HAVE ONE CHANCE NO MAKE A FIRST IMPRESSION AND TO IT AT A HIGH-END MAGAZINE.

WHAT'S GOING ON THERE?

>> HER MESSAGE IS THIS QUASI RHETORIC AND TO BE A MAGAZINE THAT CATERS TO THE WELL-TO-DO, IT CREATES THIS SORT OF IN INCONG RUEENCE ABOUT IT AND IF IT'S INDICATIVE OF A BIGGER PROBLEM.

IT WAS ODD TO SEE.

>> Ted: AA TAPED ENDORSEMENT FROM DONALD TRUMP AND THERE YOU GO.

>> GAME SET AND MATCH ON GAME ONE.

THESE BEEN THE PRESUMPTIVE NOMINEE AND WAITING THE RUMORS FIRST STARTED TO SWIRL AROUND HER POTENTIAL CANDIDACY.

I THINK THAT FOR PINAL COUNTY SHERIFF, MARK LAMB, THIS IS SOMETHING THAT HE KNEW WAS A POSSIBILITY, THAT THEY'VE BEEN BRACING FOR IT.

BUT THERE IS NO GOOD ANSWER FOR THAT.

YOU HAVE SOMEONE WHO IS CLEARLY CASTING THE LONGEST SHADOW IN THE PARTY ON OPENING NIGHT AND ENDORSING YOUR OPPONENT AND THAT'S HARD TO TOP.

>> Ted: IMMEDIATE FRONTRUNNER AND SHUTTING THE DOOR ON OTHER REPUBLICAN CANDIDATES?

>> IT WOULD SEEM SO.

OTHERS HAVE BEEN FROM, WHETHER IT'S ROSON OR DUCEY OR MASTERS.

IT'S WISHFUL THINKING FOR A LOT OF REPUBLICANS.

IT REFLECTS AN UNDERLYING ANXIETY, PERHAPS, BUT THESE WERE NEVER VIABLE POSSIBILITIES.

>> Ted: MARK LAMB WAS A SUPPORTER AND NOW HE'S TAKEN A COUPLE SHOTS AND NOTHING TOO SERIOUS.

>> HE DID POINT OUT IN A TWEET OR STATEMENT ON X, WHATEVER WE CALL THOSE, THAT, YOU KNOW, HE WAS WON ELECTIONS TO REMIND PEOPLE KARI LAKE HAS YET TO WIN AN ELECTION AND HIS INTENT TO MAKE SURE SHE KEEPS THAT RECORD.

>> Ted: AS FAR AS THE LEGISLATURE AND LAWMAKERS BEHIND CANDIDATES AND PUSH, IS SHE A FAVORITE DOWN THERE AT THE CAPITOL?

>> OH, WELL, CERTAINLY WITH THE FREEDOM CAUCUS.

AND I THINK AT THE END OF THE DAY, IT'S WHO ELSE DO YOU HAVE TO GO TO?

YOU'RE NOT GOING TO BACK SINEMA IF SHE GETS INTO THE RACE OR GALLEGO.

BUT FULL-THROATED SUPPORT MIGHT COME FROM A SEGMENT OF THE LEGISLATURE.

>> Ted: YOU CAN BACK BUT CAN REALLY BACK AND I WONDER HOW MUCH OF A BACKING SHE'LL GET FROM STATE REPUBLICANS?

>> SHE'LL GET THE SUPPORT AND NO ONE ON THE REPUBLICAN SIDE WILL WANT TO ABANDON THIS RACE TO THE DEMOCRATS.

THIS IS AN UNFAMILIAR POSITION TO HAVE TWO, LET ALONE EVEN ONE DEMOCRATIC SENATOR REPRESENTED IN ARIZONA AND BEFORE SINEMA, WE HAVEN'T HAD THAT IN 20 YEARS.

LOCAL REPUBLICANS, THEY WANT TO WIN THE SEAT BACK AND NOT USED TO LOSING STAY-WIDE RACES.

I THINK THEY'LL GET PLENTY OF BACKING AND A GOOD SHARE OF THAT FROM DC, WHICH WILL MATTER MORE, WHAT FINANCIAL BACKING, INSTITUTIONAL AND INFRASTRUCTURE BACKING FROM WASHINGTON.

>> Ted: WHAT DO YOU THINK ABOUT THAT RON?

THIS IS FULL THROTTLE AND A FULL RACE AS FAR AS THE SENATE AND IS IT THAT BIG OF A RACE?

>> FOR THE FIRST TIME IN AWHILE, ARIZONA IS MORE OF A SECOND TIER RACE NATIONALLY THAN IT IS FRONT BURNER, TOP TIER, WHATEVER META- METAPHOR.

OHIO, WEST VIRGINIA, MONTANA AND THEY VIEW THESE SEATS FAVORABLE.

THESE ARE NOT PERFECT RACES.

THERE'S CONCERN OVER WHAT CANDIDATES MIGHT EMERGE, FOR EXAMPLE, IN MONTANA, BUT AT THE END OF THE DAY, I THINK THE NATIONAL G.O.P SEES A POSSIBILITY TO GET THE MAJORITY WITHOUT ARIZONA.

CLEARLY, THEY WANT IT AND CLEARLY IT IS DEFINITELY A POSSIBILITY, ESPECIALLY IN A THREE-WAY DYNAMIC.

THAT'S A GAME-CHANGER IN SOME WAYS, AS WELL.

BUT GIVEN THE DIFFICULTY THAT KARI LAKE COULD POSE TO THEM, AS OPPORTUNITIES THEY HAVE ELSEWHERE AND MIGHT TREAT IT AS A WAIT-AND-SEE.

>> Ted: WE HAD AN AIRPORT INCIDENT REGARDING KARI LAKE AND RRUBEN GALLEGO, WHAT HAPPENED THERE?

>> THEY WERE BOTH ON THE SAME FLIGHT AND KARI LAKE TWEETED AT GALLEGO AND TWEETED BACK AND WHY DON'T YOU COME BACK TO COACH AND WE'LL TALK ABOUT THIS, PAINTING HER AS SOMEONE WHO IS USED TO FLYING IN HIGHER CIRCLES.

AFTER THEY GOT OFF THE PLANE AT SKY HARBOR, MAYOR RACK COO SHE TRIED TO ENGAGE HIM IN A DEBATE.

>> Ted: THAT SEEMED SET UP THERE, JEREMY.

>> IT DID AND DID NOT SEEM -- THAT SHE GOT THE RESPONSE OUT OF GALLEGO SHE WAS LOOKING FOR.

SHE WAS CONFRONTATIONAL AND IF YOU'RE OUTSIDE OF THE RESTROOM WITH A CAMERA, THAT'S CONFRONTATIONAL.

[ Laughter ] >> HE WAS CALM AND COLLECTED AND SAYING I LOOK FORWARD TO DEBATING THE ISSUES AND FIX PROBLEMS IN THIS COUNTRY.

SHE'S TALKING, WELL, YOU'RE DRIVEWAYING THIS COUNTRY AND I'LL BEAT YOU.

IT WAS A DIFFERENT CONTRAST IN STYLES.

THIS MEETING SOME OF THE WAIT-AND-SEE RON WAS TALKING ABOUT, THE POWER BROKERS SEEING IS THIS THE KIND OF CAMPAIGN SHE'LL RUN?

IS IT LIKE SHE WAS LAST YEAR, SUPER COMBATIVE AND CONFRONTATIONAL AND KEEP HARPING ON THE FAKE STOLEN ELECTION STUFF THAT HAS BEEN HER SIGNATURE ISSUE AND CALLING CARD?

SHE'S IN COURT LITIGATING, ASKING THE COURTS TO DECLARE HER THE RIGHTFUL GOVERNOR OF ARIZONA AND NOW SHE'S RUNNING FOR THE SENATE.

WILL SHE KEEP TALKING ABOUT THAT AND IF SHE DOES, WILL THAT SCARE OFF THE FOLKS WITH THE BIG CHECKBOOKS?

>> Ted: DID SHE RESIGN BEFORE MAKING THIS ANNOUNCEMENT?

>> WE'RE WAITING TO SEE.

>> SHE DOESN'T HAVE TO RESIGN UNTIL APRIL.

>> Ted: TALKING ABOUT TACTICS AND HOW SHE PLANS TO RUN, THIS AIRPORT CONFRONTATION, IS THIS WHAT CONGRESSMAN GALLEGO IS PLANNING TO DO,.

>> I THINK THAT'S KIND OF -- I THINK BOTH OF THOSE CANDIDATES GOUT OUT OF THAT CONFRONTATION MAYBE WHAT THEY WANTED IN SOME WAYS.

I DON'T KNOW THAT THE GALLEGO CAMP HE LOOKED AND PRESENTED.

IF YOU LISTEN TO WHAT HE SAID, IT WAS TRYING TO FOR COALITIONS AND BEING COOPERATIVE AND FIND COMMON GROUND.

I THINK THAT'S ONE OF THE BIG QUESTION MARKS THAT THE GALLEGO CAMPAIGN IS TRYING TO GET PAST.

TRYING TO MORE THAN THE STRIDENT PARTISAN.

KARI LAKE SHOWED A LOT OF FIRE REPUBLICANS WISHED THEY WOULD HAVE SEEN IN MCSALLY AND THEY WANT TO PROSECUTE THE CONSERVATIVE'S ARGUMENT AND TAKE IT TO THE DEMOCRATS, WHICH IS WHAT SHE DID.

BOTH PRESENTED WHAT THEY WANTED TO AND THE QUESTION IS, HOW DO VOTERS INTERPRET IT?

>> IT'S INTERESTING TO SEE IF GALLEGO TRIES TO MODERATE HIS MESSAGE BECAUSE EVERYBODY HAS BEEN EXPECTING A KNOCK-DOWN, DRAG-OUT FIGHT.

HE'S A MARINE VETERAN, COMBAT VETERAN AND IF YOU'VE READ HIS TWEETS, HE'S NOT SHY ABOUT BEING EXPLICIT ABOUT HIS OPINIONS AND FULL-THROATED.

IF HE'S TACKING MORE MODERATION, IT MIGHT BE A NUANCED CAMPAIGN.

>> Ted: KYRSTEN SINEMA, IS SHE SITTING BACK AND SAYING, YOU DO THAT THING AND I'LL BE SENATORIAL?

>> WHAT DID SHE DO, PUT OUT A PRESS RELEASE TO SENATOR KELLY ABOUT THE MONEY COMING TO ARIZONA FROM THE INFRASTRUCTURE ACT.

>> Ted: SO HANDICAP THIS FROM A DISTANCE AWAY.

I MEAN, WE'RE NOT OUT OF THE STARTING GATE HERE.

WHAT ARE WE SEEING HERE?

>> IT'S HARD TO SAY BECAUSE RIGHT NOW WE DON'T KNOW WHAT KYRSTEN SINEMA WILL DO AND THAT'S A BIG X FACTOR.

SHE HASN'T EVEN GIVEN HINTS.

WE'VE SEEN RECENTLY THIS INTERNAL CAMPAIGN, QUOTE, UNQUOTE, THAT BECAME VERY EXTERNAL AND SHE WAS TALKING ABOUT THE MATHEMATICAL PATH TO VICTORY AND IT BANKS ON GETTING MORE VOTES OUT OF THE LAKE THAN GALLEGO.

LOOKING AT THE CENTER RIGHT INDEPENDENT TYPES WHO WOULD VOTE FOR REPUBLICAN BUT DECIDED TO GO FOR HOBBS AND NO, GOING FOR ME THAN FEW YEAH GEAUX GALLEGO OR RAKE.

LAKE.

IT'S JUST NOT REALISTIC.

THESE FOLKS DO NOT ALL BELIEVE THE SAME THING.

IF THEY BELIEVED THE SAME THING, THEY WOULD HAVE THEIR OWN PARTY.

THIS REPRESENTS PEOPLE ON THE FAR LEFT, FAR RIGHT, CENTER LEFT AND CENTER RIGHT.

ALL ACROSS THE POLITICAL SPECTRUMS.

I DON'T KNOW HOW PEOPLE WOULD GET 60% OF THIS.

>> Ted: WHAT ARE YOU HEARING FROM THE SINEMA FOLKS?

ARE THEY RAMPING UP AT ALL OR SHUTTING DOWN?

WHAT'S GOING ON?

>> KEEPING A TIGHT LID ON WHAT THEY'RE OFFICIALLY DOING.

WHAT WE CAN SAY WITH CONFIDENCE, IF YOU LOOK AT THE CAMPAIGN FINANCE REPORTS, THE NEXT ROUND THAT WILL BE FILED, IT IS CLEAR THAT KYRSTEN SINEMA IS RUNNING ESSENTIALLY A STEALTH CAMPAIGN.

SHE'S SPENT MORE THAN $800,000 DOING SOMETHING CAMPAIGN RELATED.

YOU DON'T DO THAT IF YOU'RE NOT PLANNING TO RUN.

THERE'S A DESIRE TO RUN AND IN TERMS OF WHAT HAPPENED AT THE AIRPORT, SHE WAS THE BIGGEST WINNER BECAUSE SHE WAS ABOVE THE PLAY, WHICH I THINK IS THE OVERARCHING APPROACH THAT SHE WOULD TAKE TO THE VOTERS IF SHE IS, IN FACT, IN A THREE-WAY RACE.

I'M NOT THESE EXTREMISTS ON THE LEFT OR RIGHT.

I'M KEEPING MY EYES ON THE BALL.

YOU THINK SHE'S POSITIONED HERSELF IN A WAY THAT KEEPS THE OPTIONS OPEN.

THAT SAID, THE SCANT POLLING SHOWS HER A DISTANT THIRD IN SOME CASES AND THE MATH STARTS TO CHANGE.

SHE HAS TO DO SOMETHING TO CHANGE THAT EQUATION.

IT'S HARD TO DO THAT UNLESS YOU GET ACTIVELY ENGAGED IN A CAMPAIGN.

>> Ted: JEREMY, COFOUNDER OF DREAMWORKS, JEFFREY CASSENBURG, HE'LL GET INVOLVED IN ARIZONA LEGISLATURE?

>> HE GIVES A LOT OF MONEY TO PARTY CANDIDATES.

LAST YEAR HE GOT MORE DIRECTLY INVOLVED AND CREATED AN ENTITY CALLED "COMMUNITIES UNITED" IN THE MAYOR'S RACE AND $6.2 MILLION AND 1.85 MILLION CAME FROM HIM DIRECTLY.

NOW HIS ORGANIZATION -- I DON'T KNOW HOW MUCH INVOLVEMENT HE'LL HAVE HIMSELF.

YOU DON'T THINK THAT MUCH.

BUT JOINING FORCES WITH GOVERNOR HOBBS AND THE FORMER CAMPAIGN MANAGER RUNNING HER OUTSIDE ORGANIZATIONS TO CREATE ARIZONA UNITED.

I COULDN'T GET A GOOD SENSE OF HOW MUCH GOES TO ONE SIDE AND THE OTHER, BUT THIS IS A STATE PACK AND IF KATIE HOBBS' MANAGER IS RUNNING THE SHOW, SHE CONTROLS ABOUT WHO CONTROLS LEGISLATURE THAN CONGRESS.

SHE'S HAD A LOT OF PROBLEMS WITH THE REPUBLICAN-CONTROLLED AND MIGHT SEE A STRONG EFFORT OUT OF THEM.

>> ASIDE FROM THE MONEY, ANY CHANCE THE DREAMWORK'S PRODUCTION QUALITIES WILL PLAY OUT?

[ Laughter ] >> WE'LL SEE IN THE ADS.

WE KNOW THEY HAVE THE PEOPLE.

>> Ted: THIS IS SERIOUS BUSINESS AND THE GOVERNOR HAS EXPRESSED HER OPINION AND HER GOALS AND THIS RAMPS THIS UP, DOESN'T IT?

>> SHE HAS HER OWN PACK TRYING TO FLIP THE LEGISLATURE AND SHE'S OUT THERE WITH THE FUNDRAISING PITCHES.

I MEAN, JUST TO REMIND VIEWERS, THE LEGISLATURE, THE REPUBLICANS HAVE A ONE-VOTE MAJORITY IN THE HOUSE AND SENATE.

IT WOULD TAKE TWO DEMOCRATIC WINS IN EACH CHAMBER TO TURN CONTROL OVER TO THE DEMOCRATS IF THEY.IF THEY TAKE UP ONE SEAT IN EACH GOVERNMENT, YOU HAVE A DIVIDED GOVERNMENT.

>> Ted: AS FAR AS CAMPAIGN FUNDRAISING AND FOR PACKS AND THESE THINGS, IS THERE A -- IN ARIZONA, IS THERE MORE OF A FOCUS SINCE THE DEMOCRATS ARE SO CLOSE TO FLIPPING, GOING DOWN THAT AVENUE AS OPPOSED TO MAYBE SOME CONGRESSIONAL RACES?

>> YOU KNOW, I THINK THAT'S ONE OF THE THINGS THAT WILL PLAY OUT IN THE COMING MONTHS, THAT WE'LL HAVE TO SEE WHAT REALLY LOOKS VIABLE.

WHAT WE SAW IN THE LAST CYCLE, FOR EXAMPLE, DEMOCRATS DIDN'T INVEST IN ENGLE'S RACE AND LEFT LITERALLY MONEY ON THE TABLE ON THAT ONE AND WOULD LIKE THAT ONE BACK.

I THINK THERE'S A HUGE APPETITE AMONG DEMOCRATS TO TAKE OUT DAVID SCHWIKERT.

IN ELI CRANE'S DISTRICT, DEMOCRATS ARE STANDING DOWN TO THIS POINT, IT SEEMS.

IT'S NOT BEEN A HIGH POWERED RESISTANCE.

I THINK THEY'RE BEING SOMEWHAT STRATEGIC IN WHERE THEY WANT TO BE -- TRYING TO DO A TAKEOVER.

WHEN YOU LOOK AT THE LEGISLATURE, THIS IS TRUE LOW-HANGING FRUIT.

YOU HAVE A FEW SEATS AS MARY JO OUTLINED THAT YOU NEED TO WIN AND YOU CAN DUMP A LOT OF RESOURCES INTO A HANDFUL OF SEATS AND TRULY CHANGE THE GOVERNING DYNAMICS FOR THE STATE FOR THE NEXT TWO YEARS.

>> IN TERMS OF CONGRESSIONAL RACES, KEEP IN MIND, U.S. HOUSE RACES AND SO MUCH OF THE MONEY IS COMING FROM WASHINGTON AND FROM THE REPUBLICAN, DEMOCRATIC LEADERSHIP, THE ORGANIZATIONS OUT THERE.

THERE'S NEVER GOING TO BE A SHORTAGE OF MONEY FOR THOSE RACES, IF THEY THINK THEY CAN WIN.

THEY LEFT MONEY ON THE TABLE LAST YEAR BECAUSE DEMOCRATS DID NOT THINK THEY COULD WIN THE RACES.

NOW THEY ARE VERY MUCH BOTH IN THEIR SIGHTS AND WE'LL SEE A TON OF MONEY OUT OF NATIONAL GROUPS.

YOU DON'T SEE A LOT OF THAT FOR THAT.

HOLLYWOOD FUNDRAISERRING AND YOU COULD RAISE SERIOUS MONEY IF THEY'RE WILLING TO PUT FORTH THAT EFFORT.

>> Ted: $400 MILLION BUDGET SHORTFALL?

>> YEAH.

>> Ted: WHAT HAPPENED?

>> THEY SPENT ALL OF THE MONEY AND THE LEGISLATIVE BUDGET COMMITTEE THIS WEEK SHOWED WHAT THEY THOUGHT THEY WOULD FINISH THIS CURRENT BUDGET YEAR WITH A $10 MILLION SURPLUS AS OF JUNE AND NOW NEGATIVE 400 MILLION.

A LOT IS ATTRIBUTED TO THE FLAT TAX WHICH AFFECTED FILINGS THIS YEAR AND EVERYBODY KNEW THEY WERE GOING TO GET LESS REVENUE BECAUSE IT'S 2.5% AND EVERYBODY GOT A CUT IN THE RATE.

BUT IT HAS FAR EXCEEDED THEIR EXPECTATIONS.

SO THAT HAS PUT THEM INTO THE RED.

SALES TAXES ARE DOWN AND THEY'RE NOT UP TO FORECAST.

AND THEN, OF COURSE, YOU CANNOT TALK ABOUT A BUDGET DEFICIT OR ABOUT BUDGET SPENDING WITHOUT BRINGING IN THE UNIVERSAL VOUCHER PROGRAM WHICH HAS EXCEEDED THE FORECAST RIGHT NOW BY $40 MILLION.

>> Ted: AND AS MARY JOR MENTIONED,MENTIONED, THEY HAD A SURPLUS AND EVERYBODY GETS A PIECE OF THE PIE.

>> IT WASN'T A LITTLE BIT.

>> I THINK THE THING THAT HAS REALLY BEEN STARTLING IS THE FINAL NUMBERS THAT WE'RE SEEING, THE NUMBERS AT LEAST, THAT ARE DEVELOPED TO THIS POUND.

THIS HAS BEEN IN SOME WAYS THE BUDGET MAKER'S NIGHTMARE.

THEY DIDN'T WANT TO SEE THESE PROJECTIONS, THE SCARE TAKE THAT WAS COMING FROM DEMOCRATS, COMING INTO REALITY, BUT AT THE MOMENT, IT REALLY IS MAKING A CASE THAT THE REPUBLICAN-LEAD LEGISLATURE HAS BET ON SOME POLICY OPTIONS THAT HAVE NOT WORKED OUT THE WAY THEY WERE SUPPOSED TO.

AND THIS HAS NOW CREATED A NEW BUDGET PRESSURE HEADING INTO THE NEXT SESSION, INTO AN ELECTION YEAR WITH THEIR MAJORITIES MAJORITIES IMPERILLED IN SOME PAINFUL SORT OF WAY WHEN THERE WHAT'S ANOTHER OPTION ON THE TABLE.

>> Ted: IN GENERAL, IS THERE ANY TALK OF CLAWING SOME OF THIS MONEY BACK?

>> SURE.

KATIE HOBBS IS TALKING ALL ABOUT IT.

NO ONE ON REPUBLICAN SIDE IS TALKING ABOUT IT AND WITHOUT REPUBLICAN SUPPORT, THAT WON'T HAPPEN AND THIS HAS, AS WE SAW LAST YEAR, VERY STARK LINE IN THE SAND AND THIS IS A VERY IMPORTANT PROGRAM TO THEM AND HAS BEEN FOR A LONG TIME AND FINALLY ACHIEVED WHAT THEY WERE DOING, IS MAKING IT UNIVERSAL, NO CAP.

NOW THEY'VE GOTTEN THAT AND THEY WON'T INCLUDE THAT BACK JUST BECAUSE KATIE HOBBS WANTS IT.

>> Ted: WHAT ABOUT OTHER PROGRAMS?

EVERYBODY GOT THIS MONEY AND DO YOU NEED THE BRIDGE AND DO YOU NEED THE THIS AND THAT?

>> WELL, YOU HAVE LITIGATIONS OVER THE SUPPORT FOR THE PRESCOTT RODEO AND THE STATE TREASURE HAS PUT THAT ON HOLD.

IT HASN'T BEEN ALLOCATED YET WHILE THE LAWSUIT CONTINUES.

THERE'S MAYBE A TAIL ON THAT LAWSUIT DEPENDING HOW IT COMES OUT TO AFFECT A COUPLE CHUNG CHUNKS OF SURPLUS THAT AREN'T STATE GOVERNMENT.

THAT'S NOT A LOT OF MONEY IN THE BIG PICTURE.

I MEAN, I'VE HEARD TALK, MORE COMING FROM THE DEMOCRATIC SIDE, THAT THE GOVERNOR SHOULD START CLAWING BACK MONEY SEEING WHAT SHE COULD DO TO PULL SOME OF THAT BACK.

>> BY THE TIME THEY COME BACK IN JANUARY, HOW MUCH HAS BEEN SPENT?

BY THE TIME THEY VOTE ON SOMETHING, HOW MUCH.

IF HOBBS DOESN'T HAVE UNILATERAL AGREEMENT -- WE NEED $1.45 BILLION IN THE RAINY DAY FUND WHICH GOVERNOR DUCEY WAS ADAMANT ABOUT BOOSTING UP AND ALLOWING MORE MONEY INTO THAT.

IF IT'S $400 MILLION THIS YEAR, $450 MILLION PROJECTED FOR THE NEXT FISCAL YEAR, WILL THE REPUBLICANS AGREE TO DO THAT RATHER THAN CLAW BACK THESE PROGRAMS THAT, FRANKLY, GOT THEM THE VOTES THEY NEEDED TO PASS THIS IN THE FIRST PLACE.

>> A LOT OF THE SLICE OF THE SURPLUS, A LOT WENT TO ROAD PROJECTS.

YOU COULD PUT THE IDEA, YOU KNOW, IN YOUR FIVE AND TEN-YEAR PLAN, PULL BACK THE MONEY AND GET BACK TO IT.

WHEN ALL OF THE MONEY FROM THE BENEFIT FROM THE TAX STARTS TO FLOW IN AND REPUBLICANS SAY WILL BE COMING IN THE NEAR TERM FUTURE.

NOT IMMEDIATELY.

>> Ted: LET'S GET TO ESA AND THE SCHOOL VOUCHER.

THE REPUBLICAN LEADERSHIP, LEGISLATURE, NOT GOING TO BE ON THE CHOPPING BLOCK.

IT'S A DONE DEAL AND OVER, FINISHED.

>> YEAH.

THIS HAS BEEN A LONG-TERM REPUBLICAN PROJECT FOR ARIZONA FOR A VERY LONG TIME.

THERE'S NO APPETITE TO RETREAT ON THAT AND I THINK THAT MY GUESS IS THAT THEIR POLITICAL DESIRE WOULD BE TO WORK AROUND A NEW BUDGET REALITY IF THEY MUST.

YOU FIND OTHER PROGRAM AREAS TO ACCOMMODATE THIS VERY IMPORTANT THING.

THAT HAS NOT ONLY HAS MAJOR BUDGET IMPACTS, BUT IT'S A PART OF THE CORE CONSERVATIVE IDENTITY IN SOME WAYS.

REPUBLICANS HAVE HAD A LOT OF SUCCESS IN THE LAST CYCLE OR SO RUNNING ON PUBLIC EDUCATION.

THEIR VISION, THEY FEEL THEY HAVE THE MAJORITY AND THE PUBLIC SENTIMENT BEHIND THEM ON THIS.

WHETHER IT'S CRITICAL RACE THEIRERY OR PARENTAL CONTROL GENERALLY AND RUNNING AGAINST THE PANDEMIC AND ALL OF THE CONTROLS THAT WERE PLACED ON THEIR CHILDREN.

I THINK THE CONSERVATIVES DON'T WANT TO YIELD ON EDUCATION IN A WAY THAT WOULD CHANGE FOR THEIR LONGER TERM DIRECTION.

>> Ted: THIS ANALYSIS ABOUT ABC 15, LOOKING AT WHERE THE MONEY WAS GOING, WE HAVE SNOWBOARDING, TRAMPLETRAMPOLINE PARKS AND HOW IS THAT GOING OVER?

>> NOT WELL.

TO THE AVERAGE VOTER, THIS ISN'T SOMETHING THEY'LL WANT TO SPEND TAX DOLLARS ON.

TWO-THIRDS DID GO TO PRIVATE SCHOOL TUITION AND THE CORE THING THAT IT WAS ALWAYS SOLD AS BEING USEFUL FOR.

I THINK A THIRD OF THAT MONEY, ALMOST HALF OF THAT 200 MILLION OR SO IS FOR SPECIAL ED SCHOOLS, SCHOOLS FOR KIDS WITH AUTISM AND THE CORE THING AND EXOTIC FOODS AND YEAH, AS LONG THE DEPARTMENT OF ED SIGNS OFF, IT'S ILLEGAL DOES NOT LOOK GREAT TO MOST PEOPLE OF THE PUBLIC.

OR PEOPLE ABOUT THE NOTION OF SENDING KIDS WHERE THEY WANT, PROVIDING HOME SCHOOL EDUCATION OPPORTUNITIES.

>> Ted: THE GOVERNOR TAKES THIS REPORT AND SAID IT'S RUN AWAY AND KILLING THE BUDGET.

IS THAT THE FIRST THING THEY DO WHEN THEY GET BACK IN SESSION, THEORETICALLY?

>> NO.

>> Ted: NOT AT ALL, WHO?

WHOTHERE WILL BE NO REPUBLICAN INTRODUCING A BILL TO PULL BACK ESA'S AND DEMOCRATS HAVE A BUNCH OF THEM AND WHO WILL CALENDAR THAT?

>> Ted: ANY NOISE ABOUT THAT?

>> OF COURSE.

WE'LL HEAR THAT AT THE START OF THE STATE OF THE STATE SPEECH.

>> Ted: THAT'S WHERE I WAS GOING.

AS FAR AS THE BUDGET IS CONCERNED, KNOCK-DOWN, DRAG-OUT NEXT SESSION OR SOMETHING LESS?

>> YOU KNOW, I'M PROBABLY THE WORST PERSON TO ASK BECAUSE I WAS EXPECTING THAT FOR THIS PAST SESSION AND THEY SHOOK HANDS ON A DEAL RELATIVELY EARLY AND FOUGHT ABOUT OTHER THINGS AND THE BUDGET WASN'T THE MAIN QUARTER OF THE SESSION.

I DON'T KNOW.

I THINK THAT IT DEPENDS ON HOW BUG OFBIG OF A BUDGET HOLE.

IF FINANCES IMPROVE BETWEEN NOW AND NEXT SPRING, IT'S A DIFFERENT DEBATE.

WHEN THEY'RE FIGHTING OVER SURPLUSES THAT COULD DRAG OUT.

WHEN YOU'RE MAKING CUTS, THEY FIGURE OUT QUICKLY DEPENDING ON THE SALE OF THE CUTS WHERE THEY HAVE TO PUT THE BLOOD ON THE FLOOR.

THIS ONE IS DIFFERENT BECAUSE IT IS REALLY SORT OF GOING TO BE ASSESSED IN A PARTISAN POLICY WAY.

THE FINANCIAL PICTURE IS FAR FROM CLEAR.

THIS IS NOT THE GREAT RECESSION WHERE WE JUST KNOW THREE MONTHS FROM NOW IT WILL BE MUCH, MUCH WORSE.

>> IF IT'S DOUG DUCEY AND A REPUBLICAN LEGISLATURE, THEY CAN CUT WHAT THEY WANT.

NOW YOU HAVE A DEMOCRATIC GOVERNOR AND THIS TOOK SO LONG THIS YEAR, YOU HAD TO GET BUY-INS FROM BOTH SIDES AND THAT TOOK A LOT OF MONEY.

NOW YOU HAVE TO GET BUY-INS ON WHERE THINGS WERE CUT.

REPUBLICANS WILL NOT BE ABLE TO SLASH AND BURN.

YOU'LL NEED DEMOCRATIC SUPPORT.

>> Ted: PANEL, THANK YOU FOR JOINING US.

THAT'S IT FOR NOW.

I'M TED SIMONS AND THANK YOU FOR JOINING US AND YOU HAVE A GREAT WEEKEND