>> Ted: NEXT ON ARIZONA HORIZON, IT'S THE JOURNALIST'S ROUNDTABLE AND A LOOK AT THE WEEK'S TOP STORIES AND GOVERNOR HOBBS' A WIN FOR THE EXECUTION OF A DEATH ROW INMATE.

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 A LOOK AT THE WEEK'S TOP STORIES, NICK PHILIPS AND LAURIE ROBERTS AND MARY JO PITZL.

NICK, LET'S START WITH SOMETHING WE TALKED ABOUT LAST WEEK.

THE SUPREME COURT BASICALLY SAYING GOVERNOR HOBBS, YOU'RE NOT MANDATED TO GO THROUGH WITH EXECUTIONS IN.

>> THAT'S EXACTLY WHAT THEY SAID AND WHAT THE GOVERNOR SAID A FEW WEEKS BACK SAYING I HAVE THE AUTHORIZATION, BUT I'M IN NO WAY COMPELLED TO GO THROUGH WITH THIS EXECUTION PROCESS AND I THINK WHAT THIS RULING THIS WEEK DOES, TED, IT MAKES CLEAR THAT THERE'S ANOTHER BREAK POINT IN ARIZONA'S EXECUTION PROCESS AND THAT'S IN THE GOVERNOR'S OFFICE.

THE LAST TIME, WE WERE TALKING ABOUT THE ATTORNEY GENERAL TAKING STEPS TO WITHDRAW A MOTION FOR A WARRANT FOR EXECUTION AND SO, IN SOME WAYS THE ATTORNEY'S GENERAL'S OFFICE COULD BE A BREAK POINT SLOW OR STOP THAT PROCESS.

NOW WE KNOW THE GOVERNOR'S OFFICE IS THAT EXECUTION PROCESS CAN COME TO A HALT AT LEAST FOR NOW AND THAT IS WHAT GOVERNOR HOBBS IS DOING.

>> Ted: MARY JO, BASICALLY, THEY SAID, WE CAN ISSUE THE WARRANT AND WE'RE NOT TELLING YOU YOU HAVE TO DO IT?

>> THEY ISSUE THE WARRANT AND THE GOVERNOR DECIDES TO EXECUTE IT.

I THINK THIS SAID SOMETHING ABOUT THE EXECUTIVE POWER AND I THINK WE'LL SEE THAT WITH THE HOBBS' ADMINISTRATION, WITH THE CURRENT LEGISLATURE.

>> Ted: THOSE QUESTIONS OF THE AUTHORITY OF THE GOVERNOR IN THIS KIND OF SITUATION, THIS SORT OF SITUATION, WERE THOSE ADDRESSED BY THE COURT?

>> NOT SO MUCH.

HER OBJECTION WAS TO EXECUTION AND NOT TO WHETHER EXECUTION IS WARRANTED OR NOT.

THERE HAVE BEEN PROBLEMS WITH THE WAY EXECUTIONS HAVE BEEN CARRIED OUT IN RECENT YEARS AND THAT HAS RAISED DOUBTS IN GOVERNOR HOBBS' MIND AND THE ATTORNEY GENERAL.

>> Ted: AND LAURIE, THERE HAVE BEEN PROBLEMS WITH EXECUTION IN ARIZONA?

>> YEAH, THEY HAVE A HARD TIME KILLING PEOPLE HERE.

THE LAST ONE WAS, WHAT, A COUPLE OF YEARS AGO AND IT TOOK FAR LONGER THAN IT SHOULD HAVE AND HAD A HARD TIME GETTING NEEDLES INTO VEINS.

I KNOW PEOPLE WHO THINK ABOUT THE HEINOUS CRIMES AND IT'S AN AWESOME RESPONSIBILITY PUTTING SOMEONE TO DEATH AND DO IT RIGHT OR NOT AT ALL.

>> Ted: NICK, THE COURT SAID THE GOVERNOR HAS TO FAITHFULLY EXECUTE LAWS OBLIGATED TO PROTECT DUE PROCESS AND NOT NECESSARILY GO THROUGH WITH CAPITAL PUNISHMENT.

>> THAT'S RIGHT.

I WAS SPEAKING TO THE GOVERNOR EARLIER THIS AFTERNOON ABOUT WHEN SHE MIGHT CONSIDER MOVING FORWARD WITH THIS PROCESS.

SHE'S ORDERED A REVIEW.

SHE'S APPOINTED AN INDEPENDENT COMMISSIONER AND ASKED THEM TO DELIVER A REPORT BY THE END OF THE YEAR THAT GOES INTO SOME DETAIL ON THE PROBLEMS THE STATE HAS FACED WITH THE DEATH PENALTY IN THE PAST.

JUST A FULL SOUPS-TO-NUTS REVIEW AND SHE WON'T SPECULATE ABOUT WHAT SHE MIGHT DO AFTER THAT REPORT HAS BEEN DELIVERED.

I THINK FOR SURE, SHE'LL CERTAINLY BE FACING MORE QUESTIONS AFTER WE SHE WHAT THAT COMMISSIONER SAYS.

>> Ted: DO WE KNOW THE ATTORNEY GENERAL'S PLACE IN THIS?

>> SHE INTERVENED AND PULLED BACK THE WARRANT.

THE DEMOCRATS WHO ARE IN OUR TOP TWO OFFICES ARE OPPOSED TO THE DEATH PENALTY.

AND THIS GIVES THEM THIS PROBLEM WITH THE ABILITY TO ADMINISTER THE DEATH DRUGS, GIVES THEM THE OPPORTUNITY TO SAY, WE'LL PAUSE ALL OF THIS AND I THINK THAT A FAIR NUMBER OF PEOPLE IN ARIZONA WOULD AGREE WITH THAT DECISION.

>> Ted: THE SUPREME COURT, ALSO, MARY JO, TOOK UP THE LOSING CANDIDATE IN THE GOVERNOR'S RACE AND STILL THINKS SHE'S WON AND FOR SEVEN CLAIMS NOW, WHAT HAPPENED WITH THAT?

>> WELL, SIX OF THEM WERE REJECTED BY THE SUPREME COURT AND THEY DID SEND ONE OF KARI LAKE'S COMPLAINTS TO THE LOWER COURT JUDGE TO TAKE ANOTHER LOOK AT HER ARGUMENT THAT THE SIGNATURE VERIFICATION ON SOME OF THE BALLOTS CAST LAST NOVEMBER WAS FAULTY AND THEREFORE, DEPRIVED HER OF A WIN.

>> Ted: TAKE US THROUGH THE PROCESS BECAUSE LOWER COURTS SAID X AND THE SUPREME COURT GET IT WRONG AND NOT REALLY.

>> SHE WENT THROUGH THE COURT OF APPEALS AND SHE APPEALED IT UP TO THE PROPER CHAIN OF APPEALS AND GOT HER MOMENT BEFORE THE SUPREME COURT AND, AGAIN, THIS ISSUE WILL GO BACK TO THE MARICOPA COUNTY JUDGE WHO, BACK IN DECEMBER, I DON'T FIND ANY MERIT IN YOUR ARGUMENTS.

>> Ted: IS THAT WHAT THEY SAID OR DIDN'T FILE THIS IN TIME OR WHAT WAS THAT ALL ABOUT?

>> WELL, THE SUPERIOR COURT JUDGE HAD DISMISSED THE CLAIMS AND SAID, WE WON'T GO TO TRIAL WITH THESE AND THE STATE COURT OF APPEALS AGREED WITH THAT DECISION AND SEVEN OF THE SEVEN CLAIMS DISMISSED.

THE SUPREME COURT COURT SAID SIX OF THESE, YOU WERE RIGHT AND ONE OF THEM, WE'RE NOT SAYING WE AGREE WITH IT, BUT AT LEAST IT SHOULD GO TO TRIAL AND THERE SHOULD BE AN OPPORTUNITY FOR LIKE TOFOR LIKE TO LIKE LIKE TO HAVE HER DAY AND HE'LL HOLD THAT LATER IN THE WEEK.

>> Ted: IT NEVER SEEMS TO END.

>> KKARI LAKE HAD A TWO DAY TRIAL AND THREE TOTAL.

AFTER THE TWO DAYS IN WHICH SHE COULD PRESENT EVIDENCE, HE THREW OUT THE CLAIMS SAYING THERE'S NO EVIDENCE AND A LOT OF SPECULATION AND THE SUPREME COURT AGREED WITH THE EXCEPTION OF EARLY BALLOT SIGNATURES.

THEY SAID, NO, THAT WAS A TIMELY APPEAL THAT SHE MAIDEN THAT MADE ON THAT AND THEY DIRECTED THE COURT JUDGE TO GO BACK AND RECONSIDER THAT ISSUE.

WE DON'T KNOW IF SHE'LL HAVE A HEARING OR MAKE THE DECISION BASED ON BRIEFING PAPERS.

THE HURDLES SHE HAS TO REACH IS REALLY HIGH.

SHE NEEDS TO CONVINCE THE JUDGE BY CLEAR AND CONVINCING EVIDENCE, AND THAT'S A FAIRLY HIGH LEGAL STANDARD, THAT NOT ONLY WERE THERE PLOTS BALLOTS NOT ACCEPTED, BUT MUCH OF THEM MATHEMATICALLY TO CHANGE THE RESULT OF THE ELECTION.

IF YOU PAY ATTENTION TO ELECTIONS, YOU KNOW THAT YOU SIGNED THE EARLY BALLOT ENVELOPE AND ONCE THAT ENVELOPE, THE SIGNATURE IS VERIFIED, THE BALLOT IS SEPARATED AND BALLOTS PUT THROUGH AND NEVER AGAIN TO BE CONNECTED WITH THAT ENVELOPE.

SO I'M NOT QUITE SURE I UNDERSTAND, EVEN IF YOU CAN CONVINCE A JUDGE BY CLEAR AND CONVINCING EVIDENCE THAT A SIGNATURE WAS IMPROPERLY VALIDATED, HOW DO YOU THEN PROVE THAT WAS A VOTE, THAT WAS A VOTE FOR KATIE HOBBS.

THAT IS A STANDARD TO MAKE UP THE MARGIN OF HOBBS' VICTORY.

>> Ted: THE HOBBS' CAMPAIGN ON TWITTER OR SPEAKING FOR -- KARI LAKE, SPEAKING FOR IT, THEY CALLED THIS A WIN.

>> IT DOES GIVE HER ANOTHER SHOT AT IT.

I MEAN, NOT EVERYTHING WAS DISMISSED AND YOU HAVE ONE MORE THING TO HANG ONTO, BUT AS LAURIE POINTED OUT, THIS IS TO GIVE HER A CHANCE TO PRODUCE EVIDENCE.

I THINK THE WORDING AND THE RULING WAS ABOUT RATHER THAN HAVING, LIKE, CLAIMS THAT ARE UNTETHERED, THIS IS A FACT TO PRODUCE THAT.

>> Ted: 35 BALLOTS INJECTED INTO THE ELECTION AND THERE WAS CHAINED CUSTODY, THE SUPREME COURT GOT IT RIGHT.

>> THAT'S RIGHT.

THESE WERE TOSSED AND WE AGREE THAT THEY SHOULD BE TOSSED FROM COURT.

>> Ted: WHAT DOES THIS MEAN AS FAR AS THE NEVER-ENDING KARI LAKE CAMPAIGN?

>> TIME TO SEGWAY INTO A SENATE CAMPAIGN, I GUESS.

[ Laughter ] >> AFTER ANOTHER COUPLE OF ROUNDS AND I THINK THE INTERESTING THING IS, SHE HAS SAID ALL ALONG THAT THE STANDARD, THE LEGAL STANDARD IS TOO HIGH, WHICH THE COURTS HAVE NOW SAID, ONE, TWO, THREE COURTS HAVE SAID, NO, THE JUDGE GOT THE STANDARD RIGHT AND SHE'S TRIED TO ASSERT THAT IF THE RESULTS OF AN ELECTION ARE UNCERTAIN, THAT IS GOOD ENOUGH TO OVERTURN IT.

AND THE COURTS HAVE SAID TIME AND TIME AGAIN NOW, UNCERTAINTY IS NOT A REASON TO OVERTURN DEMOCRACY.

YOU WOULD HAVE WON BUT FOR THIS ERROR ON THE PART OF MARICOPA COUNTY.

I DON'T SEE HOW SHE GETS THERE, BUT WE'LL SEE.

>> Ted: ARE THERE SANCTIONS AT PLAY HERE, NICK, FOR THE LAKE ATTORNEYS?

>> THERE COULD BE.

IN FACT, AT THE END OF THE SUPREME COURT ORDER, THEY LAID OUT ALMOST WHAT COULD LOOK LIKE A PATHWAY FOR KATIE HOBBS TO SEEK SANCTIONS AGAINST KARI LAKE AND HER ATTORNEYS, SPECIFYING WE'RE OPEN TO A MOTION FOR SANCTIONS.

THIS MAY BE BOILERPLATE, NOT SUPPORTING OR THAT THEY WOULD ACCEPT THAT.

BUT THEY WERE SPECIFYING WHICH OF THE CLAIMS WOULD BE THE BASIS FOR SEEKING SANCTIONS AGAINST THE PLAINTIFFS, KARI LAKE IN THIS CASE.

>> SIMILAR FOR MARK FINCHEM'S CASE.

THEY'RE ATTORNEY'S FEES.

>> IT'S WORTH POINTING OUT THAT FAILED ATTORNEY GENERAL ABE HAMADEH HAS A TRIAL PENDING FOR A COUPLE MONTHS NOW IN MOHAVE COUNTY, AND HE WANTS THE CHANCE SAYING MY ELECTION WOULD BE OVERTURNED AND HAS A 300 VOTE MARGIN TO OVERCOME.

SO IT MEETING EASIER TO BE OVERCOME.

BUT I THINK, YOU KNOW, WE'LL SEE WHAT THE JUDGE DOES.

>> Ted: I THOUGHT THAT THE REASON THAT THE SUPREME COURT SENT THIS BACK WAS THAT IT WAS A TIMELY NATURE AND THE IDEA THAT THE LOWER COURT SAID IT WASN'T PRODUCED IN TIME AND THE SUPREME COURT COULDN'T PRODUCE IT IN TIME BECAUSE IT HADN'T HAPPENED YET.

>> THE PARTICULAR CLAIM THAT THE STATE SUPREME COURT SENT BACK TO THE TRIAL COURT WAS DISMISSED AT THE TRIAL COURT LEVEL PURSUANT TO THE LACHERESS DOCTRINE AND IT COULD BE DISMISSED FOR AN UNREASONABLY PERIOD OF TIME.

THE STATE SUPREME COURT SAID THAT DOESN'T ACTUALLY APPLY IN THIS CASE.

THE CLAIM SHE'S MAKING HAS TO TO WITH ACTIONS TAKING AND THE PROCESS OF COUNTING BALLOTS AND COULDN'T HAVE BROUGHT THAT CLAIM PRIOR TO THE BALLOT COUNTING.

>> I THINK ONE OF THE PROBLEMS THERE AND THE CONFUSION FOR THE TRIAL COURT JUDGE WAS ALL OF HER EVIDENCE HAD TO DO WITH THE 2020 ELECTION, THE BALLOT SIGNATURES SHE SHOWED.

THIS IS NOT A TIME TO LOOK AT 2020 BALLOT SIGNATURES.

SO IT'S QUITE THE MESS AND JUST GOES ON PUP.

>> I'LL BE CURIOUS TO TIE THE BALLOT ENVELOPE FROM WHATEVER BALLOT IS IN THAT STACK TO SHOW THAT THESE TWO BELONG TOGETHER.

BECAUSE IF YOU CAN DO THAT, WE MIGHT HAVE PROBLEMS.

>> THE ONLY THING IS IF YOU WENT AND LOOKED AT ALL OF THE BALLOTS IN A PARTICULAR PRECINCT AND YOU WERE ABLE TO PROVE BY CLEAR AND CONVINCING EVIDENCE, AGAIN, THAT X NUMBER OF BALLOT SIGNATURES SHOULD NOT HAVE BEEN ALLOWED, AND THEN, I GUESS, YOU WOULD TAKE THAT PERCENTAGE MATH THAT MATHEMATICALLY AND APPLY THE OVERALL PERCENTAGE OF THE WIN/LOSS MARGIN WANT WAS IN THAT DISTRICT.

YOU TAKE BALLOTS AWAY FROM KATIE HOBBS AND KARI LAKE.

IT'S CONFUSING AND A TALL HURDLE.

>> Ted: YOU WOULD SAY THE SAMPLE SIZE WASN'T BIG ENOUGH AND GO TWO AND FOUR DISTRICTS GOING ON AND OVER AND ON AND WE COULD GO ON AND OVER.

LET'S SHIFT GEARS.

MARY JO, THIS FOOD TAX, A BILL THAT CUTS SALES TAX TO GROCERIES AND THAT WAS A PART OF THE LAKE CAMPAIGN, IF I REMEMBER CORRECTLY.

THE LEGISLATURE THINKS IT'S A GOOD IDEA.

>> PICKS UP BY SENATE PRESIDENT WARREN PETERSEN, TO PROVIDE RELIEF TO PEOPLE IN ARIZONA HAMMERED BY INFLATION AND GETTING RID OF RENTAL TAX AND PASSED THAT, SENT IT TO HOBBS AND VETOED IT.

THE ELIMINATION OF THE FOOD TAX HAS PASSED TO THE LEGISLATURE AND ON ITS WAY TO THE GOVERNOR TO AN UNCERTAIN FATE, PERHAPS.

BUT IT WAS DONE AGAIN IN THE NAME OF TRYING TO PROVIDE RELIEF TO CONSUMERS AND VERY INTERESTINGLY, IT DOESN'T HURT THE STATE FUNDS.

IT HURTS LOCAL GOVERNMENTS.

SOME OF WHOM, LIKE CHANDLER, THEY RELY ON A GROCERY TAX.

IF WE CAN'T HAVE THAT, IT'S GOING TO COME FROM SOME PLACE ELSE.

>> Ted: WHAT, PROPERTY TAXES?

>> ESPECIALLY RURAL CITIES THAT HAVE LIMITED ABILITY TO RAISE MONEY.

THEY'RE GOING TO LOSE POTENTIALLY, DEPENDING ON THE CITY AND HOW MUCH THE TAX IS, UP TO 30% OF THEIR BUDGET.

THAT'S A BIG HIT.

ONLY ONE PLACE THAT HIT ENDS UP AND THAT'S POLICE AND FIRE BECAUSE THERE AREN'T THAT MANY LIBRARIANS YOU CAN PUT CUT.

THE INTERESTING THING ABOUT THIS, THE REPUBLICANS PITCHED THIS AS SOMETHING TO DO BECAUSE OF JOE BIDEN'S INFLATION AND WE'LL DO THIS FOR EVERY DAY PEOPLE AND DOESN'T TAKE EFFECT UNTIL JULY OF 2025.

>> Ted: HOW MUCH DOES IT ACTUALLY HIT?

>> FIRST OF ALL, 71 OF THE STATES TUSH -- I THINK 70 OF THE 90 CITIES HAVE A FOOD TAX.

44% OF THE STATES LIVE IN CITIES THAT DON'T HAVE FOOD TAXES.

PEOPLE AT THE LOW-INCOME LEVEL, THAT QUALIFY FOR FOOD STAMPS ARE QUALIFIED.

THE TAX ON AVERAGE FOR THE STATE IS $2.69 FOR $100 WORTH OF GROCERIES.

DEMOCRATS ARE SAYING THAT'S CHUMP CHANGE AND NOT RELIEF OF ANY SORT.

I DON'T THINK I WOULD SAY BECAUSE FOR SOME, $2.69 MIGHT BE A LOT OF MONEY.

WHAT ULTIMATELY WILL HAPPEN IS WHAT WILL HAPPEN WHEN THE STATE ITSELF GOT RID OF THE STATE FOOD TAX, WHICH IS IN A COUPLE OF YEARS, YOU RAISE THE OVERALL SALES TAX.

>> Ted: IS THE GOVERNOR LIKELY TO VETO -- A TOUGH CALL HERE, GETTING RID OF GROCERY TAX, VETO THAT.

>> THIS IS INTERESTING BECAUSE IN SOME WAYS, YOU KNOW, FOOD TAX IS WHAT ECONOMISTS MIGHT CALL A REGRESSIVE TAX.

I BUY $100 WORTH OF GROCERIES, A MILLIONAIRE BUYS THAT AND WE MAY THE SAME AMOUNT OF TAX.

THAT'S A LARGER SHARE OF MY INCOME THAN A HIRE EARNER.

BUT I THINK IT'S PROBABLY GOING TO BE A VETO AND THIS CAME UP WHEN THE GOVERNOR WAS SPEAKING TO REPORTERS THIS AFTERNOON, AS WELL.

SHE LISTED A COUPLE THINGS SHE DIDN'T LIKE AND MENTIONED WHAT LAURIE SAID, IT DOESN'T TAKE EFFECT FOR A COUPLE OF YEARS AND A NEGATIVE IMPACT ON CITIES AND TOWNS.

SHE MENTIONED SHE WANTS BIPARTISAN SOLUTIONS TO ISSUES FACING THE STATE.

THIS ISN'T BIPARTISAN AND PASSED ON PURE PARTISAN LINES IN THE LEGISLATURE.

>> I WONDER IF IT PROVIDES SOME GROUNDS FOR NEGOTIATION.

THE GOVERNOR HAS HER OWN TAX CUT SHE WANTS WHICH IS ON FEMININE PRODUCTS AND DIAPERS.

AND THAT'S PROBABLY A SMALLER SAVINGS, AND TO A MORE DISCRETE POPULATION.

WHEN YOU GET INTO BUDGET TALKS AND YOU WANT SOMETHING TO BARGAIN WITH, YOUR TAX CUT, I'LL MATCH IT WITH MINE AND WE'LL SEE WHAT WE GET AND SOMEWHERE IN THE MIDDLE.

>> Ted: LAURIE, WE HAD YOU TALKING ABOUT THIS AND THIS ESA VOUCHER REPORT.

AND PEOPLE ARE RUSHING TO THIS THING LIKE IT'S GOING OUT OF SMILE.

>> IT WOULD BE ABOUT THE LEGISLATIVE BUDGET AND THOUGHT IT WOULD BE ABOUT A $32 MILLION HIT TO THE GENERAL FUND AND IT'S LOOKING LIKE WHAT, 379 MILLION BY THE END OF THIS YEAR?

>> OVER 50,000.

>> OVER 50,000 CHILDREN IN THIS.

WHAT I WOULD LIKE KNOW, HOW MANY CHILDREN ARE COMING FROM THE PUBLIC SCHOOL, SO IT'S NOT AN ADDITIONAL NEW EXPENSE FOR US.

VERSUS HOW MANY ARE PRIVATE SCHOOL PARENTS FIGURING I CAN FILL OUT MY VACATION FUND BY -- I'VE BEEN PAYING TAXES AND NOW I CAN GET THE TUITION AND NOW I CAN GET THE STATE TO PAY THAT TUITION?

>> Ted: WE TALKED ABOUT THIS EARLIER IN THE PROGRAM AND THANK YOU FOR DOING THAT.

IT'S WAY ABOVE THE FORECAST AND THE COST IS WAY ABOVE THE FORECAST AND IT WAS DIFFERENT BECAUSE NO ONE HAS DONE THIS BEFORE.

>> WE HAVE OTHER STATES PILING IN AND ARIZONA IS SETTING THE -- I'M NOT SURE IF THEY'RE A MODEL BUT A PLACE YOU CAN LOOK TO.

TO YOUR QUESTION, LAURIE, AS I UNDERSTAND IT, THE BUDGET OFFICIALS ARE RECKONING, I'VE HEARD 50/50 AND KIDS FROM THE PUBLIC SCHOOL VERSUS CHILDREN NEVER IN PUBLIC SCHOOLS.

THAT EXTRA COST TO THE STATE CUSTOMS FROM THE CHILDREN WHO HAVE NEVER BEEN IN A PUBLIC SCHOOL.

THEY'RE SAYING THAT WILL BE 274 MILLION, BUT THE NUMBERS ARE NOW HIGHER.

>> I CAN'T IMAGINE ANY PARENT IN THE PUBLIC SCHOOLS -- MY CHILD IN PHOENIX COUNTRY DAY AND PAYING 0 20 OR 34,000 A YEAR.

WHY WOULDN'T YOU DO THAT.

ADDITIONALLY, IT'S BRAND NEW MONEY.

WHERE WILL IT COME FROM?

FINE, THE LEGISLATURE THIS YEAR SAYS WE'VE GOT A HUGE BUDGET DEFICIT -- I'M SORRY, BUDGET SURPLUS AND PULL IT OUT OF THE $1.8 BILLION SURPLUS.

WE HAD A GOVERNOR NAMED JANET THAT POLTHATNAPOLITANO AND LET'S PAY FOR EVERYBODY AND THEN RECESSION HIT AND WE DON'T HAVE ALL-DAY KINDERGARTEN ANYMORE.

>> THERE'S A BILL VOTED ON MONDAY TO GIVE $10,000 PAY RAISES TO EVERY PUBLIC SCHOOL TEACHER IN ARIZONA.

WHERE IS THE MONEY COMING FROM THIS MONEY SURPLUS AND IT'S AN ONGOING COST INTO THE BUDGET AND IT'S JUST LIKE THE PERMANENT ALL-DAY KINDERGARTEN, WHICH, OBVIOUSLY, DID NOT REMAIN PERMANENT ONCE THE RECESSION HIT.

>> Ted: NICK, WHAT ARE REPUBLICANS SAYING?

YOU HAVE THE SURPLUS, RAINY DAY FUND.

THIS IS A LOT OF MONEY AND CERTAINLY MORE THAN EXPECTED AND DOUBTFUL THAT IT'S GOING TO GO DOWN.

WHAT, WE'RE A WASH IN MONEY AND LET'S GO FOR IT?

>> IT WON'T GO DOWN AND ONLY UP FROM HERE AND THIS MAY BE A HILL THAT REPUBLICAN LAWMAKERS WANT TO DIE ON BECAUSE THIS IS ONE OF THE MOST IMPORTANT SIGNATURE ACCOMPLISHMENTS OF THE ENTIRE DOUG DUCEY ERA OF POLITICS.

IT PASSED AND IT WAS A HUGE ACCOMPLISHMENT FOR REPUBLICAN LEGISLATORS LAST YEAR AND THEY WANT THIS TO CONTINUE.

SO THEY'RE TALKING ABOUT, LIKE YOU SAID, TAKING MONEY OUT OF THE RAINY DAY FUND, WHICH YOU WOULD EXPECT FISCAL CONSERVATIVES TO BE CARING ABOUT.

THEY'LL TRY TO FIND THIS SOMEWHERE AND YOU CAN BET THAT GOVERNOR KATIE HOBBS IS GOING TO PUSH BACK AGAINST THAT OR TRY TO USE THAT, PERHAPS, AS LEVERAGE FOR SOME PRIORITIES.

>> Ted: LAURIE MENTIONED ALL-DAY KINDERGARTEN AND THIS REMINDS YOU OF SOMETHING ELSE, DOESN'T IT?

>> I REFERENCED THE ALTERNATIVE FUEL ACE PROGRAM WHICH WERE SUBSIDIES IN THE EARLY 2000'S, I THINK, TO PROVIDE A SUBSIDY.

IF YOU SHIFTED YOUR CAR TO PROPANE OR NATURAL GAS, THERE WAS NO CAP ON IT, SO PEOPLE WERE BUYING TRUCKS, FORD 250'S WITH COMPACT DISC PLAYERS, AND MOON ROOFS AND ALL THE TRICKS AND PUTTING ON A PROPANE TANK AND CUTTING THIS IN HALF.

>> Ted: YOU REMEMBER THAT.

>> IT BANKRUPTED THE STATE.

AND I THINK THAT'S WHAT GOVERNOR HOBBS WANTS TO DO.

ANOTHER ISSUE ABOUT THESE VOUCHERS IS THAT THERE'S VERY LITTLE, IF ANY, OVERSIGHT, AS TO HOW THIS MONEY, HOW THESE SCHOOLS ARE GOING TO USE THIS MONEY AND WHAT WILL IT BE SPENT FOR.

I HAVE NO DOUBT ESTABLISH SCHOOLS CAN HANDLE THEMSELVES AND I'M WONDERING HOW MANY FLY-BY-NIGHT WILL OPEN UP AND $7,500 A YEAR AND THERE WILL BE NO OVERSIGHT AND WE WON'T KNOW WHAT WE'RE GETTING FOR OUR MONEY.

FRANKLY, NEITHER WILL THE PARENTS.

>> Ted: IN 2018, THE VOTERS TOOK A LOOK AT SOMETHING SIMILAR AND SAID, WE DON'T WANT ANY PART OF THIS AND THE LEGISLATURE SAID, OH, YEAH, WE DO AND WE GOT IT.

>> TOOK A COUPLE YEARS, BUT YEAH.

>> Ted: BUDGET TALKS, I'M READING AND HEARING THERE MIGHT BE SOME BUDGET TALKS?

>> THAT'S WHAT I'M READING AND HEARING, TOO, TED.

THERE MIGHT BE TALKS AND THERE MIGHT NOT BE TALKS AND PEOPLE SAY MY PEOPLE ARE TALKING WITH THEIR PEOPLE AND NOT TOTALLY CLEAR WHO IS IN CONVERSATION WITH WHO AT THE LEGISLATURE AT THIS POINT.

EARLIER THIS WEEK, SOME OF THE CONSERVATIVES SUGGESTED THEY WANT TO TIE AN APRIL 1st APRIL 1st DEADLINE RELATED TO ACCESS AND FEDERAL HEALTHCARE TO THE BUDGET AND THEY SAID THAT MEANS WE NEED TO HURRY UP AND GET THIS OPPORTUNITY AND WE'LL THIS DONE AND THE GOVERNOR SAID THIS HAS NOTHING TO DO WITH THAT.

ONE OF THE PROPOSALS ON THE TABLE IS TO GIVE EACH LAWMAKER A CERTAIN SLICE OF THE BUDGET FOR THEIR PET PROJECTS OR COMBINED PET PROJECTS.

AND THAT'S SOMETHING ELSE POTENTIALLY ON THE TABLE.

BUT IT'S NOT CLEAR AT WHAT LEVEL THESE DISCUSSIONS ARE REALLY HAPPENING.

>> I THOUGHT THE GOVERNOR AT HER PRESS THIS AFTERNOON MENTIONED SHE WAS GOING TO A MEETING WITH THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE TO TALK ABOUT BUDGET.

SO IF YOU HAVE THE BIG THREE, YOU KNOW, THAT'S A START.

>> THAT'S FORWARD PROGRESS.

I STILL WOULDN'T EXPECT TO SEE ANYTHING BY THE TIME THEY'RE SUPPOSED TO GET IT DONE, WHICH IS I BELIEVE, APRIL 18th, 28th.

I WOULD BET WE'LL BE SITTING HERE ON JUNE 30th, HAVING THIS SAME DISCUSSION ABOUT WHAT WILL HAPPEN.

I DON'T SEE WHERE THERE WILL BE A MEETING OF THE MINDS.

THESE ARE PEOPLE PRETTY WELL ENTRENCHED ON BOTH SIDES AND DIFFICULT TO SEE WHERE THE WIGGLE ROOM IS.

>> Ted: THAT IDEA OF SEEING WHAT DO YOU WANT TO SEE?

HAVE YOU SEEN THAT BEFORE?

>> IT'S A TWIST ON THAT AND THEY GO AND TALK TO THE RANK AND FILE AND SAY, WHAT ARE YOUR MUST-HAVES IN THE BUDGET?

BY PUTTING A DOLLAR AMOUNT ON IT, MAYBE IT HELPS TO REFINE THEIR THINKING OR MAYBE WE WOULD BRING THEM TOGETHER IN COALITIONS AND THERE'S A BUNCH OF THEM WILL BE PAID FOR BY ONE LAWMAKER'S SLICE OF THE SURPLUS AND PICK IT UP ANOTHER NOTCH.

WHAT'S YOUR DYE ON THE HILL FOR.

>> Ted: THE IDEA OF GETTING THIS MEDICAID DEADLINE AT THE END OF THE MONTH, APRIL 1st, BEFORE THAT AND DEMOCRATS ARE SAYING, YOU HAVE TO BE KIDDING ME AND THAT'S NOT NECESSARY AND SEPARATE AND APART AND SEPARATE LEGISLATION AND THOSE ARE FEDERAL FUNDS ANYWAY.

>> SEPARATE LEGISLATION AND THE REPUBLICAN MAJORITY LEGISLATURE COULD PASS THAT IF THEY WANTED TO.

>> Ted: BUT ANY INTEREST?

>> APPARENTLY NOT.

>> THEY SHOULD BECAUSE THEY'LL LOSE OUT AND THEY'RE JUST LOSING THAT AS A BARGAINING CHIP TO GET THAT DONE QUICKLY.

I HAVE A QUESTION AND I'M OLD SCHOOL, WHATEVER HAPPENED TO THE IDEA OF IN THE PROCESS OF PUTTING TOGETHER A BUDGET, YOU HOLD HEARINGS AND YOU DISCUSS IT WITH THE PUBLIC AND TAKE INPUT?

THAT SEEM TO BE AN OLD FASHIONED IDEA.

>> I THOUGHT THAT WAS JUST CITIES AND TOWNS.

>> Ted: THAT'S WHAT WE'LL TAKE WITH US THROUGH THE WEEKEND BECAUSE OUR SHOW IS OVER.

THAT'S IT FOR NOW.

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