TED: -- TED:?

TED:.

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TED: COMING UP NEXT ON "ARIZONA HORIZON," IT'S THE JOURNALISTS' ROUNDTABLE.

A LOOK AT THE WEEK'S TOP STORIES, INCLUDING LAWMAKERS FINDING A WAY TO CONTINUE FUNDING A STATE PROGRAM FOR PEOPLE WITH DISABILITIES.

THE JOURNALISTS' ROUNDTABLE IS NEXT ON "ARIZONA HORIZON."

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TED: GOOD EVENING, AND WELCOME TO "ARIZONA HORIZON."

I'M TED SIMONS.

IT'S FRIDAY, AND THAT MEANS IT'S TIME FOR THE JOURNALISTS' ROUNDTABLE, AND JOINING US TONIGHT, JEREMY DUDA OF AXIOS PHOENIX, HIS WIFE IS AN EMPLOYEE OF ARIZONA PBS.

MARY JO PITZL AND HOWIE FISCHER OF CAPITOL MEDIA SERVICES.

GOOD TO HAVE YOU ALL HERE.

THANK YOU FOR JOINING US.

JEREMY, START WITH YOU.

FINALLY, $122 MILLION FUNDING GAP.

IT'S OVER, SIGNED, IT'S DONE DEAL.

WHAT HAPPENED?

>> WHAT HAPPENED, AFTER A COUPLE OF MONTHS OF ARGUING OVER AT THE CAPITOL, THEY REACHED A COMPROMISE AGREEMENT AFTER THE GOVERNOR USED HER NUCLEAR OPTION LAST WEEK AND SAID I WILL VETO ANY BILL THAT GETS TO MY DESK UNTIL WE GET TO SOLUTION OF THE $122 MILLION SHORTFALL.

THAT PRODDED EVERYONE TO ACTION.

THE REPUBLICANS HAD THEIR OWN PLAN, WHICH THE GOVERNOR DID NOT LIKE THAT, DIDN'T APPEAR TO HAVE THE VOTES TO PASS AT THE LEGISLATURE.

SO THEY FINALLY ON WEDNESDAY NIGHT, THEY HAMMERED OUT A DEAL AND EVERYONE GAVE A LITTLE AND THE PLUS SIDE IS THE DEVELOPMENTAL DISABILITIES PROGRAM WILL NOT RUN OUT OF FUNDING.

TED: TALK ABOUT THE PROGRAM AND WHAT IT DOES?

>> IT'S FUNDING FOR THE WHOLE DISABILITIES DIVISION.

THE FLASH POINT IS PARENTS AS PAID CAREGIVERS, THIS USES MONEY TO PAY PARENTS FOR PROVIDING CARE FOR DISABLED CHILDREN WITH DISABILITIES.

STARTED DURING THE PANDEMIC WITH FEDERAL MONEY.

LAST YEAR THE FEDERAL CONTRIBUTION CUT BACK TO TWO THIRDS, GOVERNOR HOBBS WAS WITHIN HER RIGHT TO DO THAT, BUT DIDN'T TELL LAWMAKERS THAT WAS THE PLAN, AND ENROLLMENT IN THIS PROGRAM HAS GROWN PRETTY EXPLOSIVELY, AND PARENTS SAY BECAUSE WE CAN'T FIND ANYBODY OUT THERE IN THE PRIVATE SECTOR TO BE CAREGIVERS BECAUSE THERE'S A PROBLEM WITH SALARIES FOR THOSE CAREGIVERS.

SO LET THE PARENT, PAY THE PARENT, LET THEM STAY IN THE HOME.

MANY ARE GIVING UP THEIR CAREERS AND JOBS TO CARE FOR CHILDREN, SO THIS PROVIDES SOME COMPENSATION, AND THAT'S WHAT REALLY LIT THE FIRE ON THIS THREE-MONTH EXERCISE.

>> WHAT'S INTERESTING IS, WHAT'S CLEAR TO ALL OF US, AT SOME POINT THE MONEY WAS GOING TO BE THERE.

>> YES.

>> THE QUESTION CAME DOWN TO WHAT POUND OF FLESH THE LEGISLATURE WOULD DEMAND?

THAT HAD TO DO WITH OVERSIGHT OF PROGRAMS, LIMITS ON HOW MANY HOURS THE PARENTS COULD GET PAID.

OTHER RESTRICTIONS.

THEY GOT MAYBE SIX OUNCES OF FLESH BASED ON WHAT WAS THERE.

WHAT IT SAYS IS YOU CAN CONTINUE FEDERALLY FUNDED PROGRAMS THAT THE STATE ABSORBS.

YOU GOT WAIVERS, THEY CALL THEM, AND DO THAT WITHOUT COMING BACK TO US.

IF YOU WANT TO EXPAND THE PROGRAM, COME UP WITH A NEW POPULATION, YOU CAN'T ASK FOR THE FEDERAL MONEY UNTIL YOU GET OUR PERMISSION.

AND THE REASON IS, AS WHAT HAPPENED HERE, THE FEDERAL MONEY RUNS OUT AND IT'S HARD TO KILL A PROGRAM ONCE IT'S BEEN STARTED, SO THE LEGISLATURE SAID IF WE'RE GOING TO SIGN ONTO THIS, WE BETTER KNOW WHAT'S COMING DOWN THE ROAD.

TED: AND REPUBLICANS, CORRECT ME IF I'M WRONG, WANTED A LIMIT OF 20 HOURS A WEEK AS OPPOSED TO 40 HOURS A WEEK FOR THE CAREGIVERS, CORRECT?

>> AFTER A YEAR SCALED DOWN TO 20 HOURS.

THAT IS WHERE MOST NOTABLY JULIE WILLOUGHBY MADE A STAND ABOUT THIS IN THE COMMITTEE AND REFUSED TO VOTE FOR THE PROPOSAL THAT WAS BECAUSE OF THAT.

THEY HAD TO STACK, ADD NEW MEMBERS TO THE HOUSE COMMITTEE, TOO.

GET THAT PASSED.

ONCE IT GOT TO THE FLOOR, MORE ISSUES WITH THAT BECAUSE THIS IS A CRITICAL PROGRAM, AND ONCE YOU START OFFERING, THIS GETTING RID OF IT, SO MANY PEOPLE DEPEND ON IT, SUCH AN IMPORTANT THING, A SYMPATHETIC AND VULNERABLE POPULATION THIS IS ABOUT.

THIS IS ABOUT THE PARENTS WHO GIVE UP EVERYTHING, AS MARY JO MENTIONED, TO TAKE CARE OF THEM.

IT IS VERY DIFFICULT TO GET RID OF.

TED: AS JEREMY MENTIONED THE GOVERNOR THREATENED TO VETO ANYTHING AND EVERYTHING IN HER PATH.

>> NO BILLS WENT TO HER DESK, MAYBE NOW HALF WON'T GET VETOED ANYWAY, IT WAS A WAY TO FLEX MUSCLE.

>> THAT'S EXACTLY THE POINT.

WE KNOW ANY, ALL REPUBLICAN BILLS GET VETOED ANYWAY, SO SHE WAS GOING TO VETO WHAT THE DEMOCRATIC BILLS TO THE EXTENT THE DEMOCRATIC BILLS GETTING TOWARDS THIS.

IT WASN'T A BIG SURPRISE TO REPUBLICANS.

WE KNOW THERE'S A BILL GOING UP WHAT PRONOUNS TEACHERS CAN USE.

WHAT BATHROOMS PEOPLE CAN USE.

THEY'RE ALL OUT THERE.

IT WAS SORT A THREAT.

MORE OF A SHOW.

TED: STOW WASN'T EFFECTIVE, ARE YOU SAYING?

MADE NO DIFFERENCE AT ALL?

>> IT FORCED THEM TO FINALLY FOCUS A LITTLE MORE BECAUSE THEY RECOGNIZE WHY SEND UP ANYTHING ELSE?

WHY GO INTO FINAL READING ON CERTAIN BILLS FOR THE SIMPLE REASON THAT IF WE SEND IT UP, SHE'S GOING TO VETO IT, MIGHT AS WELL PAY ATTENTION.

WE KNOW IT HAD TO BE RESOLVED BY MAY 1.

GET IT OUT OF THE WAY, AND WE CAN GET BACK TO ARGUING WITH EACH OTHER AND CALLING EACH OTHER NAMES.

>> IT WAS CLEAR FROM AT LEAST SIX WEEKS AGO, THEY WERE GOING FULLY FUND THE PROGRAM.

NOT JUST FOR THE PARENT CAREGIVERS BUT THE PEOPLE IN THE PRIVATE SECTOR WHO WERE CAREGIVERS.

WORK IN GROUP HOMES.

THEY NEED THE MONEY TO KEEP GOING, OTHERWISE IT WAS GOING TO DRY UP ON MAY 1.

BUT JUST CAME DOWN TO.

I THINK WHAT HELPED IS THE PARENTS AS CAREGIVERS, THEY WERE DOWN AT THE CAPITOL A LOT.

AND PUT A LOT OF PRESSURE ON IT, AND IT'S A VERY SYMPATHETIC POPULATION, AND YOU ADD TO THAT, I DON'T THINK IT MOVED REPUBLICANS, BUT MOVED THE PUBLIC PERCEPTION.

DEMOCRATS KEPT MAKING THE POINT, WAIT A MINUTE, THE SCHOOL VOUCHER PROGRAM, THAT HAD FAST, RAPID GROWTH AND WE DIDN'T PUT LIMITS ON THAT.

TED: I HEARD THAT QUITE A BIT DID.

IT MAKE DIFFERENCE AT ALL?

>> PROBABLY NOT.

SOMETHING THE GOVERNOR REFERS TO ON A WEEKLY BASIS IN DOMINION, WHATEVER SHE'S MAD AT THE LEGISLATIVE REPUBLICANS ABOUT.

GIVE THE MORATORIUM TO THE VETO THAT MATTERS, THE LOOMING DEADLINE COMBINED WITH THE PARENTS AND KIDS COMING DOWN HERE, AND YOU COME FACE-TO-FACE WITH THE KIDS AND YOU SEE THE SPECIAL NEEDS THEY HAVE AND HOW DEPENDENT THEY ARE ON THEIR CAREGIVERS.

IT BREAKS YOUR HEART TO SEE.

NOBODY WANTS TO BE BLAMED FOR LEAVING THEM IN THE LURCH WHICH IS WHAT'S GOING TO HAPPEN.

>> IMPORTANT TO MENTION, THIS EXTENDS TO ADULTS WITH DISABILITIES.

PEOPLE WHO ARE AS CHILDREN CARED FOR BY PROVIDER PARENTS AND SENT TO GROUP HOMES BECAUSE MOM AND DAD HAVE PERHAPS PASSED AWAY.

THERE'S A SPECTRUM OF THE POPULATION THAT'S AFFECTED.

AND IT WAS CLEAR THEY WEREN'T GOING TO LET THEM ALL HANG OUT TO DRY WITH NO SUPPORT.

>> THEY PUT IN A FEW OTHER THINGS WHICH THE PARENTS WERE OKAY WITH.

THE CARE IS ONLY FROM 6:00 A.M. TO 10:00 P.M. >> NOT ALL OF THEM.

WHAT HAPPENS AS A SENATOR SAID, WHAT HAPPENED IF YOUR KID HAS A SEIZURE AT 10:30 AT NIGHT?

>> THIS COMES DOWN TO WHAT PARENTS NORMALLY DO.

YOU CANNOT CHARGE FOR DOING THEIR LAUNDRY, PREPARING MEALS, YOU SHOULD BE DOING THAT FOR YOUR OWN KID.

IF THEY'RE AT PUBLIC OR PRIVATE SCHOOL OR IF THEY'RE IN A CLINICAL FACILITY, YOU DON'T GET ON CHARGE HOURS FOR THEM.

I THINK FROM THE PERSPECTIVE OF LAWMAKERS, THEY GET A FEW GUIDE POSTS IN THERE, COUPLED WITH THE ISSUE WE TALKED ABOUT, WHICH IS THEY'RE GOING TO HAVE TO GET FUTURE PERMISSION, SO THE GOVERNOR CAN'T SAY, LOOK, I'VE EXPANDED THE PROGRAM.

TED: LAST QUESTION HERE.

POUND OF FLESH ASIDE.

WINNERS AND LOSERS IN ALL THIS?

POLITICALLY.

GOVERNOR'S OFFICE AND LAWMAKERS.

>> THE GOVERNOR'S OFFICE IS SAYING, LOOK, WE DID IT.

WE DIDN'T HAVE TO GIVE UP MUCH.

OBVIOUSLY, YOU KNOW, MR. LIVINGSTON, AND SOME OF THE OTHER REPUBLICANS SAY LOOK, WE DID IT, TOO.

WE MADE SURE THAT THESE CHILDREN ARE CARED FOR.

LOOK, COME ELECTION TIME A YEAR FROM NOW, WE DON'T KNOW.

THERE ARE STILL RECALLS AGAINST FOUR OTHER REPUBLICAN LEADERS.

NOW DO, THEY PURSUE THESE OR NOT?

>> POLITICALLY, I'D SAY REPRESENTATIVE JULIE WILLOUGHBY.

TED: THAT'S THE NAME I KEPT HEARING.

>> NANCY GUTIERREZ, A DEMOCRAT, AND THESE TWO WOMEN PUT TOGETHER THE PLAN THAT WAS ULTIMATELY APPROVED.

THE DEMOCRATS ARE ALWAYS GOING TO VOTE TO FULLY FUND THE PROGRAM AND HAVE AS FEW LIMITS AS POSSIBLE, BUT WILLOUGHBY AND GUTIERREZ MADE IT WORK.

TED: WILLOUGHBY FROM CHANDLER, CORRECT?

>> CORRECT.

TED: HIGH-PROFILE, GOOD WIN FOR HER?

>> DEFINITELY.

HOW MANY LEGISLATORS HAVE A PROFILE TO BEGIN WITH.

HOBBS, I THINK WE'RE GOING TO HEAR FROM THE REPUBLICANS NEXT YEAR, WE HAD TO BAIL OUT THE ELECTION BECAUSE HOBBS OVERSPENT.

IN THE NUANCES OF THIS, THAT'S A TALKING POINT ON THE CAMPAIGN TRAIL.

>> THEN HOBBS WILL SAY I SAVED THESE FAMILIES BECAUSE THE BILLS THAT WERE INTRODUCED THIS WEEK, AS WE'RE TRYING TO GET THIS DONE, WERE RATHER HARSH AND COULDN'T GET ALL THE REPUBLICANS ON BOARD.

THEY WERE TRYING TO KEEP WITH THAT 20-HOUR A WEEK LIMIT.

>> RIGHT TO THE END.

>> COME BACK A DAY BEFORE THE END.

>> MS. WILLOUGHBY GOT A LOT OF ACCOLADES AND DID A HUMAN JOB.

THE FACT SHE BUCKED HER OWN PARTY IN THE COMMITTEE, TO BRING IN ANOTHER REPUBLICAN TO VOTE AGAINST HER, THAT DOESN'T MEAN THE DEMOCRATS WILL TRY TO UNSEAT HER IN 2026.

TED: WE HAVE JLBC WITH THE BUDGET, AND THE BUDGET ISN'T AS ROSY AS IT ONCE THOUGHT.

>> BEFORE THE PRESIDENT DECIDED TO BLOW UP THE ECONOMIC SYSTEM AND TARIFFS AND EVERYTHING ELSE, WE WERE LOOKING AT A SURPLUS OF SOME $630 MILLION MAS O MENOS.

THAT'S WHERE ALL THE EXTRA PROGRAM HAVE TO COME OUT, TO CUT INCOME TAXES, THE GOVERNOR'S PLAN TO PROVIDE MORE CHILD CARE, BUT THE SURPLUS IS LESS THAN 2% OF $17.8 BILLION BUDGET.

WE'RE TALKING ABOUT FIGHTING NICKELS AND DIMES IN THE COUCH.

WHAT'S INTERESTING IS THE JOINT LEGISLATIVE BUDGET COMMITTEE COMPRISED OF GOVERNMENT AND PRIVATE ECONOMISTS, THEY BUTCHER A CHICKEN AND BURN THE BONES AND TRY TO FIGURE OUT WHAT IT MEANS.

THEY'RE SAYING WE CAN'T MAKE A PREDICTION WHEN YOU HAVE AN ECONOMY THAT'S BEEN DESTROYED BY THE PRESIDENT.

HALF THE STATE BUDGET IS SALES TAXES.

IF PEOPLE ARE BUYING LESS, WE'RE IN DEEP TROUBLE.

TED: PET PRIORITIES, JEREMY, ARE THEY NOW JUST SHOVED OFF TO THE SIDE WITH THE NEW NUMBERS?

>> IN A LOT OF CASES.

YEAH, SEEING IN A LOT OF BUDGETS, FAMOUSLY A COUPLE YEARS AGO, BUYING EVERYONE'S VOTES, YOU GET A PROJECT HERE, A RODEO HERE, A ROAD HERE, THIS AND THAT, THERE'S NOT GOING TO BE THE MONEY TO THROW AROUND TO BRING PEOPLE ON BOARD.

>> AND GOING OUT WITH THE ECONOMY, THAT'S PRESUMING THINGS DON'T GET WORSE, WE HAVE FORECAST OF ECONOMIC RECESSION, SO CHAOTIC AND IN FLUX RIGHT NOW.

WHAT WE'RE SEEING NOW WITH THE NUMBERS ISN'T THE BIG RISK.

WHAT COULD HAPPEN WITH THEM DOWN THE ROAD IN THE NEAR FUTURE SEEMED LIKE THE BIGGER RISK.

TED: AS I READ IT, JLBC RAN A STRESS TEST IN CASE OF RECESSION?

THAT DIDN'T LOOK GOOD AT ALL?

>> NO, THE RESULT WAS FOR THE COMING YEAR, ZERO PERCENT GROWTH IN THE BUDGET, AND FOR THE FOLLOWING YEAR, NEGATIVE 2% DECLINE, AND THEY NOTED THAT THE STATE'S RAINY DAY FUND, WHICH THEY DO NOT TOUCH, BECAUSE IT'S NEVER RAINING, WOULDN'TING ENOUGH TO FILL THE GAP.

THERE'S A GREAT TONE OF CAUTION, AND YOU DON'T KNOW WHAT'S GOING TO COME WITH MEDICAID.

CONGRESS HAS YET TO PLAY THE CARD.

I HEARD DON'T CUT MEDICAID IN ARIZONA YET BECAUSE YOU DON'T KNOW.

YOU BETTER BE READY, IF THE CUTS HAPPEN, WHAT'S THE PLAN?

WOULD ARIZONA ABSORB SOME OF THE COSTS AND MEDICAID DOLLARS PAY AMONG OTHER THINGS, DISABILITY SERVICES.

>> ABSORB THE COSTS.

SOUNDS LIKE SOMETHING WE DISCUSS WITH DDD FUNDING.

EXACTLY THE SAME KIND OF THING.

THE OTHER PIECE OF IT IS WE HAVE DEPORTATIONS GOING ALONG.

WE HAVE CERTAIN SEGMENTS OF THE ECONOMY, AGRICULTURE AND HOME CONSTRUCTION, WHERE -- I'M NOT GOING ON A LARGE LIMB AND SAYING THERE'S A CERTAIN PERCENTAGE OF PEOPLE WHO ARE HERE ILLEGALLY.

IF THEY DO DEPORTATION, THAT TOO WILL AFFECT THE ECONOMY.

TED: WITH THAT IN MIND, JEREMY, HOW DO YOU NEGOTIATE A BUDGET WHEN THE GOALPOSTS AREN'T JUST MOVING, THEY'RE DANCING?

>> DO YOU IT VERY CAUTIOUSLY BECAUSE YOU DON'T INCREASE SPENDING ON THINGS THAT AREN'T ABSOLUTELY CRITICAL, AND KEEP AN EYE ON, IF THINGS GET WORSE, WHERE DO YOU MAKE THE CUTS FROM.

YOU HAVE TO MAKE THE MID-YEAR CUTS, YOU SEE THE BIG FIGHTS.

QUICKLY TALK ABOUT MEDICAID.

WE HAD A CHAMBER OF COMMERCE LUNCHEON WITH CONGRESSIONAL DELEGATION AND ANDY BIGGS.

CONGRESSMAN FORMER SENATE PRESIDENT, THERE'S TALK OF REDUCING MATCH FOR CHILDLESS ADULTS UNDER THE MEDICARE MAP TO 72%, THE EXPANSION LAW FROM 2013 SAYS IF IT GOES BELOW 80%, THAT EXPANSION GOES AWAY AND YOU GET A LARGE CHUNK OF FOLKS OUT OF HEALTH CARE AND A LOT OF PRESSURE FOR THE STATE TO PICK UP THE TAB BUT THE MONEY IS NOT GOING TO BE THERE.

>> SPEAKING OF CAUTION, YOU ASKED ABOUT PET PROJECTS, ONE THING THERE COULD BE AGREEMENT ON IS PAY RAISES FOR PUBLIC SAFETY OFFICIALS.

THE GOVERNOR PROPOSED IT, LAWMAKERS LIKE IT.

I CAN'T REMEMBER WHAT THE PRICE TAG IS ON THAT, IF YOU WANT TO DO THAT, YOU HAVE TO FIND ROOM SOMEPLACE ELSE.

BE READY FOR HAIR CUTS.

>> LET ME EMPHASIZE PART OF WHAT JEREMY IS TALKING ABOUT, TALKING ABOUT PEOPLE WITHOUT INSURANCE.

GUESS WHO ENDS UP PAYING FOR THAT?

THE HOSPITAL.

TED: AND THE HOSPITAL ASSOCIATION.

WE HAD THEM ON THE PROGRAM.

THEY ARE VERY CONCERNED.

>> NONPROFIT HOSPITALS, WHICH GET A TAX EXEMPTION ARE SUPPOSED TO PROVIDE UNCOMPENSATED CARE, IF ALL OF A SUDDEN, THEY'RE FINDING THAT UNCOMPENSATED CARE IS LEAVING THEM BANKRUPT.

RURAL HOSPITALS ARE PARTICULARLY VULNERABLE TO THIS THING.

THERE'S A LOT OF PRESSURE ON LAWMAKERS ASSUMING MEDICARE -- MEDICAID GETS CUT BACK, TO BACKFILL.

TED: WHERE ARE BUDGET NEGOTIATIONS RIGHT NOW?

THE DDD TAKE UP ALL THE OXYGEN?

>> SEEMS LIKE IT.

AS FAR AS I KNOW AND BEEN TOLD, THERE HAVEN'T BEEN THE MEETINGS BETWEEN THE GOVERNOR, THE SPEAKER OF THE HOUSE AND THE SENATE PRESIDENT.

THERE HAVE BEEN TALKS IN THE TWO CHAMBERS, HOUSE AND SENATE, WORKING ON THEIR WISH LIST, BUT NOT ANYTHING THAT GETS DOWN TO THE NITTY-GRITTY.

>> AND ANOTHER PIECE OF THIS, EXPANSION OF PROPOSITION 123, WHICH HAS TO DO WITH THE ADDITIONAL MONEY, $4,000 A YEAR TEACHER PAY RAISES, THE GOVERNOR AND LEGISLATURE HAVE PLANS, DIVIDING IT UP HOW THEY TAKE IT OUT OF THE TRUST FUND.

I DON'T THINK THE GOVERNOR WANTS TO GET INTO THE BUDGET UNTIL WE GET AN ELECTION SET FOR PROP 123, WHICH ALSO GETS INTO THE EXPENDITURE LIMITS WHICH MEANS THE SCHOOLS, IF THEY GET THE MONEY, CAN'T SPEND IT.

TED: WITH EVERYTHING IN MIND, AND EVERYTHING HAPPENING IN WASHINGTON THAT HAS THE ECONOMIC PICTURE CLOUDY AND UNCERTAIN, DOES THIS MEAN YOU WAIT, YOU PAUSE, OR CHARGE AHEAD?

WHAT ARE YOU GOING TO DO?

>> YOU HAVE TO CHARGE AHEAD.

UNLIKE THE FEDERAL GOVERNMENT WHICH IS GOING TO CONTINUE TO PASS RESOLUTIONS THROUGH SEPTEMBER 30, WE HAVE A HARD AND FAST JUNE 30 DEADLINE.

SCHOOLS NEED TO KNOW HOW MUCH THEY'RE GOING TO HAVE?

DO THEY NEED TO LAY OFF TEACHERS?

YOU HAVE A SMALL DECLINE IN TERMS OF GROWTH OF KIDS IN PUBLIC SCHOOLS.

ALL THIS HAS TO COME TOGETHER.

THEY CAN DO THINGS WHERE THEY CAN PUSH -- WE'VE BEEN HERE IN JULY AND AUGUST.

YOU HAVE TO HAVE A BUDGET, YOU HAVE TO HAVE A SPENDING PLAN AND A REVENUE PLAN BEFORE JUNE 30.

>> YEAH, I DON'T EXPECT THEM TO REACH AN AGREEMENT FOR A WHILE.

THEY'LL PROBABLY HAVE A LITTLE TIME SEE HOW THINGS WORK OUT.

TED: EVERY DAY, YOU DON'T KNOW WHAT'S GOING TO HAPPEN WITH THE ECONOMY ON A DAILY BASIS.

>> I CAN SEE SPECIAL SESSIONS IN THE FALL.

TED: WOW, REALLY?

>> YEAH.

AFTER THE START OF THE FEDERAL BUDGET YEAR ON OCTOBER 1, DON'T GO TOO FAR AWAY.

TED: HEADING INTO ELECTION YEAR.

JEREMY, IT SOUNDS AS THOUGH DONALD TRUMP IS ENDORSING ANYONE AND EVERYONE WHO RUNS FOR GOVERNOR ON THE REPUBLICAN SIDE IN ARIZONA?

>> ENDORSING AT LEAST TWO PEOPLE, WHICH IS UP FROM THE ONE HE ENDORSED OR PLEDGED SUPPORT FOR A FEW MONTHS AGO, IN DECEMBER, HE TOOK THE STAGE AT A RALLY IN PHOENIX AND TOLD KARRIN TAYLOR ROBSON, IF YOU RUN FOR GOVERNOR, WHICH I THINK YOU'RE GOING TO, HAVE YOU MY SUPPORT, AND A COUPLE MONTHS LATER ANDY BIGGS GOT INTO THE RACE, HE'S A MAGA GUY, CLOSE WITH THE PRESIDENT, AN ALLY FOR YEARS, AND THIS WEEK, TRUMP DID WHAT I THINK A LOT OF US EXPECTED US TO DO, YOU ARE BOTH GREAT CANDIDATES, BOTH GET ENDORSEMENTS, THEY BOTH HAVE AN ENDORSEMENT, BUT THIS IS A LOSS FOR KARRIN TAYLOR ROBSON.

SHE HAD IT ALL TO HERSELF, HER HISTORY IS NOT AS A MAGA PERSON, NOT THAT FACTION.

SO IF YOU ARE GOING TO BE WON OVER BY A TRUMP ENDORSEMENT, NOW YOU HAVE TWO PEOPLE TO CHOOSE FROM.

ONE OF WHOM HAS A LONG HISTORY WITH THE MAGA MOVEMENT SINCE IT STARTED WITH PRESIDENT TRUMP.

>> THAT'S CRUCIAL WHEN.

KARRIN TAYLOR ROBSON ANNOUNCED AND WE COUNTED THE NUMBER OF TIMES SHE USED THE WORD TRUMP IN A SINGLE PRESS RELEASE.

I COUNTED 12, AND THAT DIDN'T COUNT HER VIDEO, SHE THOUGHT THAT WOULD BE ENOUGH.

SHE'S SEEN AS A DOUG DUCEY-TYPE MODERATE.

AS MUCH AS PEOPLE LOOK BACK ON DUCEY, WELL, HE DIDN'T DO A BAD JOB FOR US, THERE ARE ELEMENTS OF THE PARTY THAT DON'T LIKE DOUG DUCEY AND JAN BREWER TYPES.

THAT'S MEDICAID EXPANSION.

TED: IT SEEMS LIKE A BIG HIT FOR KARRIN TAYLOR ROBSON GETTING OUT OF THE PRIMARY AND YET WOULD STAND A GOOD CHANCE IN THE GENERAL.

>> I THINK SHE WOULD PROBABLY STAND A VERY GOOD CHANCE IN THE GENERAL, BUT THAT'S THE QUESTION, CAN SHE GET THERE?

I THINK THE KATIE HOBBS TEAM IS VERY HAPPY TO SEE TRUMP ENDORSEMENT OF BIGGS.

>> I'M NOT AS CONVINCED.

THAT'S THE WAY I ORIGINALLY FELT, BUT THE FACT IS ANDY BIGGS IS NO KARI LAKE.

KARI LAKE ANNOYED MEMBERS OF HER OWN PARTY.

IF YOU'RE NOT WITH ME, GET OUT OF THE PARTY, IF YOU'RE McCAIN TYPE, GET OUT OF THE PARTY.

BIGGS IS A SERVICK, BUT I THINK HE'S BRIGHTER THAN SHE IS, HE RECOGNIZES HE NEEDS TO BRING THE FOLKS IN THE PARTY.

IF HE CAN UNITE THE PARTY, REPUBLICANS OUTNUMBER THE DEMOCRATS IN THE STATE.

SO MANY PEOPLE, REPUBLICANS, SKIPPED THE GUBERNATORIAL RACE LAST TIME BECAUSE THEY COULDN'T VOTE FOR KATIE BUT SURE WEREN'T GOING TO VOTE FOR KARI.

TED: BIGGS IS A BIG NAME IN THE EAST VALLEY, A BIG NAME IN MARICOPA COUNTY.

DO PEOPLE IN PIMA COUNTY, OTHER COUNTIES AROUND THE STATE, DO THAN I WHO ANDY BIGGS IS?

>> NOT NECESSARILY YET, BUT THEY HAVE A LONG WAY TO CAMPAIGN.

AS HOWIE MENTIONED, BIGGS LACKS THE UNIQUE FLAWS AND FAULTS THAT KARI LAKE HAD AS A CANDIDATE.

THERE'S NO QUESTION THAT KATIE HOBBS WOULD RATHER SEE HIM IN A GENERAL ELECTION THAN KARRIN TAYLOR ROBSON, DESPITE THE FACT SHE'S CAMPAIGNING IS MORE BY HER HISTORY, AN ESTABLISHMENT REPUBLICAN.

NOW BIGGS IS NOT GOING TO SAY THE THINGS KARI LAKE SAID, BUT HE HAS A TRACK RECORD, AND ESPECIALLY A YEAR LIKELY TO FAVOR DEMOCRATS WITH A REPUBLICAN IN THE WHITE HOUSE, ONE INSISTENT ON ANTAGONIZING AS MANY PEOPLE AS HE CAN, IF YOU'RE HOBBS, YOU WANT TO SEE YOUR OPPONENT GO AS FAR TO THE RIGHT AS POSSIBLE.

>> BIGGS ADVOCATED FOR GETTING RID OF MEDICAID IN ARIZONA.

THAT'S NOT SOMETHING HE SUPPORTS.

WE HAD THE BATTLE WITH DISABILITY SERVICES AND MEDICAID, WHEN PEOPLE START TO WEIGH, WHAT THAT WOULD MEAN.

TED: AND NOT CERTIFYING ELECTION, THESE SORTS OF THINGS.

THESE WILL COME BACK, WILL THIS BE A NASTY, AN ESPECIALLY NASTY PRIMARY?

>> I'M ALREADY SHARPENING BY PENCILS AND FELT-TIP PENS OUT AND VIDEO CAMERAS AND TAPE RECORDERS READY.

THIS IS GOING TO BE ONE FOR THE BOOKS.

TED: YOU THINK SO?

>> ONE FOR THE BOOKS.

KARRIN IS INTERESTING, WHEN SHE WAS ASKED ABOUT THE DUAL ENDORSEMENT, SHE NEVER ONCE MENTIONED, BY THE WAY HE ENDORSED SOMEONE ELSE.

I'M SO GLAD TO HAVE THE PRESIDENT'S ENDORSEMENT.

A REPEAT OF HER CAMPAIGN ANNOUNCEMENT.

NEVER ACKNOWLEDGING THAT.

YOU CANNOT DO THAT.

SHE'S A WOMAN WHO NEVER SERVED IN PUBLIC OFFICE OTHER THAN THE BOARD OF REGENTS.

TALK ABOUT ENDORSEMENT, I'M NOT SURE TAYLOR ROBSON HAD AIRTIME.

SHE GOT MONEY OF HER OWN BECAUSE OF THE ROBSON COMMUNITIES AND SUCH.

TED: AND SHE HAS RUN FOR STATEWIDE OFFICE.

>> RUN FOR STATEWIDE OFFICE, BUT SHE COULD BECOME THE HAROLD STASSEN, SHOWING A REALLY OLD REFERENCE.

TED: HOLY SMOKES, NOT GOING BACK THAT FAR.

SOMEONE ELSE WHO WILL RUN IS ADRIAN FONTES, WHAT HAPPENED TO ALL THE AMBITIONS?

>> HE WAS A POTENTIAL CANDIDATE.

I DON'T THINK ANYONE BELIEVED HE WAS GOING TO CHALLENGE KATIE HOBBS IN THE PRIMARY.

DEFINITELY LOOKED LIKE HE WAS GETTING INTO THE SPECIAL ELECTION FOR RAUL GRIJALVA'S SEAT, AND IT WAS CLEAR HE WOULD SEEK RE-ELECTION.

JUST A MATTER WHEN HE WAS GOING TO ANNOUNCE.

THAT HAPPENED THIS WEEK, AND DEFINITELY SEEKING IT.

>> TAKING HIS ANNOUNCEMENT AROUND TO DIFFERENT PARTS OF THE STATE.

SAYS HE WANTS TO -- HE LOOKS AT THE 2024 ELECTIONS.

WE RAN REALLY GOOD ELECTIONS.

NOBODY WAS DISPUTING THE RESULTS, WE DIDN'T HAVE AN AUDIT, AND HE SEES THIS AS BUILDING CONFIDENCE IN ELECTIONS.

NOT SURE HOW MUCH OF THE ELECTORATE FEELS GOOD ABOUT THE ELECTIONS.

TED: ALEXANDER COLWIN, ANYONE ELSE?

>> GINA SVOBODA IS LOOKING TO GET INTO THE REPUBLICAN RACE, WE'LL SEE.

>> GINA SVOBODA PRETTY MUCH SET TO GET IN, IS THE IMPRESSION I GOT.

SHE'S LEANING AGAINST IT.

GOOD CHANCE IT'S NOT GOING TO HAPPEN.

I'M SURE WE'LL SEE ANOTHER REPUBLICAN CANDIDATE GET IN, CHALLENGE ALEX COLWIN.

TED: YOU THINK SO?

WHAT KIND OF REPUBLICAN WOULD GET INTO THE RACE, DO YOU THINK?

>> I DON'T THINK MANY WILL.

HERE'S THE INTERESTING THING, THIS IS THE FIRST YEAR WE HAVE A LIEUTENANT GOVERNOR POSITION.

WHILE NOT SEPARATELY ELECTED, A TICKET FOR PRESIDENT AND VICE PRESIDENT, THAT'S GOING TO TAKE A LITTLE ATTENTION WAY, YOU COULD HAVE TWO PEOPLE AT THE TOP OF THE TICKET FOR EACH PARTY, AND SECRETARY OF STATE IS SEEN MORE MINISTERIAL, AND LESS THE HEIR APPARENT TO THE GOVERNORSHIP WHICH IS HOW MANY TIMES GOING BACK TO BOOST THE SECRETARY OF STATE HAS BECOME THE GOVERNOR.

TED: PEOPLE FORGET WE'RE DOING THIS LIEUTENANT GOVERNOR THING.

THIS HAPPENED -- >> IT TAKES A LITTLE SHINE OFF THE SECRETARY OF STATE, FROM A CANDIDATE POINT OF VIEW.

I DON'T THINK THE PUBLIC PAYS A LOT OF ATTENTION TO THAT, BUT USED TO BE YOU NEEDED TO BE MINDFUL THAT SECRETARY OF STATE COULD ASCEND TO THE GOVERNORSHIP.

IT'S HAPPENED HERE MANY TIMES.

>> EVERY TIME THE GOVERNOR LEAVES TOWN, HOLY SMOKES.

>> THOSE DAYS ARE SOON TO END.

TED: YES, YES.

NO ONE ELSE IN THE DEMOCRATIC PARTY WOULD OBVIOUSLY TAKE ON FONTES HERE, BUT YOU THINK THE REPUBLICANS MIGHT THROW SOME MORE NAMES?

>> I THINK ABSOLUTELY.

YOU LOOK AT WHAT HAPPENED A FEW YEARS AGO WHEN FONTES WAS ELECTED AGAINST MARK FINCHEM, ELECTION DENIER, FAR TO THE RIGHT.

CALLED BY THE SAME CAMP, BACKED BY THE SAME PEOPLE AND REPUBLICANS ARE GOING TO BE VERY CONCERNED ABOUT WHAT THE GENERAL ELECTION IS GOING TO LOOK LIKE, SOMEONE THAT IS MORE MODERATE IN THERE?

>> COLWIN IS RUNNING AS THE FREEDOM CAUCUS CANDIDATE.

HE HAS THE FARTHER RIGHT ENDS OF THE REPUBLICAN PARTY.

THERE'S A LOT OF ROOM.

TED: ALL RIGHT.

ALL RIGHT.

WE'LL STOP IT RIGHT THERE.

YOU GOT AN AWARD THIS WEEK?

>> ARIZONA MEDIA ASSOCIATION, INDUCTED INTO THE HALL OF FAME, WHICH I AM HONORED OVER.

YOU MAY CALL ME SIR HOWARD.

TED: I MAY AND I MAY NOT.

CONGRATULATIONS.

THAT'S IT FOR NOW.

I'M TED SIMONS.

THANK YOU SO MUCH FOR JOINING US.

YOU HAVE A GREAT EVENING.

I love working at Arizona PBS for many reasons.

The people, I'm fortunate to wor with,