>> Ted: NEXT ON ARIZONA HORIZON, IT'S THE JOURNALIST'S ROUNDTABLE.

WE'LL LOOK AT THE WEEK'S TOP STORIES INCLUDING THE STATE REPUBLICAN PARTY AND SECRET RECORDINGS.

THE JOURNALIST'S ROUNDTABLE IS NEXT ON ARIZONA HORIZON.

>> THIS HOUR OF LOCAL NEWS IS MADE POSSIBLE BY CONTRIBUTIONS FROM YOUR PBS STATION.

THANK YOU.

>> Ted: GOOD EVENING AND WELCOME TO ARIZONA HORIZON.

I'M TED SIMONS.

IT'S FRIDAY AND THAT MEANS IT'S TIME FOR ANOTHER EDITION OF THE JOURNALIST'S ROUNDTABLE AND JOINING US IS JIM SMALL, MARY JO PITZL AND JEREMY DUDA OF AXIOS PHOENIX.

JIM, WE'LL START WITH YOU.

THIS BUSINESS OF THE REPUBLICAN PARTY, WE HAVE SECRET RECORDINGS AND WHAT IS GOING ON HERE?

>> YEAH, WHAT GOES ON IS, OBVIOUSLY, REPUBLICANS I HAD, I THINK, A BAD WEEK.

ON THE HEELS, COMING UP TO THEIR ANNUAL MEETING AND DONALD TRUMP WAS SUPPOSED TO COME TO TOWN AND THE RECORDING KARI LAKE HAD MADE THE CONVERSATION WITH JEFF DEWIT BEFORE SHE WAS CARING IT CONSIDERING IT AND TRYING TO DANGLE JOBS IN FRONT OF HER TO GIVE HER SOMETHING ELSE TO DO, TO GIVE HER A SOFT LANDING SPOT AND HE WAS ACTING AT THE BEHEST OF POWERFUL PEOPLE BACK EAST.

I WOULD ASSUME IN D.C. AND KARI LAKE, REPUBLICANS LOOKED AT HER AS A LIABILITY AND IF THEY COULD GET HER OUT RACE, THEY WOULD BE HAPPY TO AND IT SEEMED AS JEFF DEWIT WAS CARRYING WATER ON THAT ISSUE AND TRIED TO TO DO IT AND NOT KNOWING THE CONVERSATION WAS RECORDED.

HERE WE ARE AND HE'S FORCED OUT AS REPUBLICAN PARTY CHAIRMAN.

>> Ted: NINE OR TEN MONTHS LATER, WHY?

>> THAT'S A GOOD QUESTION.

I THINK THERE WAS A MEMO THAT WAS CIRCULATING SHOWING THAT ONE OF THE CORPORATION COMMISSIONERS WHO WOULD LIKE TO BE PARTY CHAIR ASKED TWO WEEKS AGO, CAN I DO BOTH JOBS AND CAN I HEAD THE CORP COM?

THAT WAS TWO WEEKS BEFORE THIS PHONE CALL EMERGES AND IT'S JUST A GREAT PLOT BECAUSE THE PHONE CALL WAS RELEASED BY THE DAILY MAIL WHICH VIEWERS MIGHT KNOW IS A LONDON NEWSPAPER.

AND THE MEETING HAPPENED IN KARI LAKE'S OWN LIVING ROOM AND ANYBODY WHO'S BEEN AROUND KARI LAKE FOR AT LEAST SINCE SHE RAN FOR GOVERNOR, HE KNOW SHE RECORDS EVERYTHING.

REMEMBER THE TIME SHE MET RUBIN GUYRUBENGALLEGO, YOU HAVE TO WONDER IF THIS IS ALL ON VIDEO.

>> Ted: YOU HAVE A HIDDEN MIC AND WHAT COULD BE, WHAT SHE CALLS, AT LEAST, A BRIBE AND YOU'VE GOT THE REPUBLICAN CHAIR ASKING THE NUMBER ONE REPUBLICAN CANDIDATE FOR U.S. SENATE, DON'T DO IT, PLEASE, DON'T DO IT.

GOODNESS GRACIOUS.

>> WHERE DO YOU BEGIN WITH THIS?

JUST WHEN YOU THINK YOU'VE SEEN EVERYTHING, YOU HAVE THIS.

THE IMMEDIATE RESULT, A NEW ARIZONA REPUBLICAN CHAIRMAN AND I THINK IT'S WORTH NOTING, JEFF DEWIT WAS UNDER FIRE FROM FOLKS IN THE PARTY, LOTS OF PARTY DRAMA AND DEBATES OVER LEADERSHIP AND DIFFERENT LEGISLATIVE DISTRICTS, LAWSUITS AND WHATNOTS.

THEY WOULD TAKE HIM OUT AT THE MEETING NEXT SATURDAY.

THIS ADDS A NEW DIMENSION TO IT AND DID PEOPLE KNOW ANYTHING?

I SPOKE WITH JIM O'CONNOR AND HE SAYS, PEOPLE ASKED ME TO RUN AND I DIDN'T KNOW ANYTHING ABOUT THIS LAKE AND DEWIT TAPE AND I WAS MAD BECAUSE THIS LEGISLATIVE DISTRICT LEADERSHIP STUFF AND SOME OF THE OTHER THINGS.

BUT IN THE LONG RUN, YOU HAVE TO WONDER WHAT DYSFUNCTION IS IN THE PARTY AND WHAT'S A CRITICAL YEAR FOR THEM.

THEY'VE HAD SEVERAL YEARS OF NASTY LAWSUITS TO THE DEMOCRATS IN A STATE THAT WAS RELIABLY RED AND THEY'RE TRYING TO GAIN THOSE BACK.

HOLDING ON TO TOUGH CONGRESSIONAL SEATS AND NOW, YOU HAVE ALL OF THE DISARRAY FROM THE PAST FEW YEARS.

IF YOU ADD THIS, YOU HAVE TO WONDER WHAT DONORS ARE THINKING LOOKING AT THIS SITUATION AND WHAT ARE WE GETTING OURSELVES INTO HERE.

>> Ted: SHE WAITED UNTIL THE PERFECT TIME TO RELEASE IT AND SAID IF YOU DON'T STEP DOWN OR RESIGN, I HAVE MORE WHERE THIS CAME FROM.

>> THE LAKE CAMPAIGN HAS DENIED THEY MADE THREATS ALONG THOSE LINES.

>> Ted: BUT HE SAID THEY DID.

>> HE CERTAINLY SAID THEY DID.

AND I THINK HE INTIMATED THAT HE COULD SAY ABOUT THAT AND SAYING HE DIDN'T THINK KARI LAKE COULD WIN THE SENATE RACE.

SO I DON'T KNOW IF THIS IS OVER OR NOT.

I THINK ONE SIDE IS NOT AND STEP HE WAS STEPPING OUT OF POLITICS AND WENT OUT AND KIND OF TRASHED KARI LAKE PUBLICALLY.

SO I DON'T KNOW WE'VE SEEN THE END OF THIS YET AND CERTAINLY, THIS COMES -- ALL OF THIS DISRUPTION COMES AT A CRITICAL TIME FOR ARIZONA REPUBLICANS.

THEIR FUNDRAISING HAS BEEN ABYSMAL UNDER DEWIT'S TENURE.

I DON'T KNOW HOW THEY'LL DO THIS WITH A NEW CHAIRMAN ESPECIALLY IF THE NATIONAL REPUBLICANS DON'T SEE THIS AS AN ENTITY THEY COULD TRUST WITH MONEY.

>> TO THE POINT ABOUT SAYING SHE CAN'T WIN, I MEAN, I THOUGHT THAT WAS A PART OF THE REASON FOR THE MEETING BACK IN MARCH, THERE WAS CONCERN NOT JUST FROM JEFF DEWIT, YOU WOULD ASSUME, BUT OTHER PARTY BIG WIGS THAT LAKE IS NOT GOING TO CUT IT AS THE U.S. SENATE CANDIDATE FROM ARIZONA.

AND THIS IS SOMETHING THE PARTY CHAIR PEOPLE DO, BUT USUALLY QUIETLY BEHIND THE SCENES AND NOT SUPPOSED TO PIT A FAVORITE IN THE PRIMARY, BUT THEY WILL TALK TO PEOPLE SAYING THIS ISN'T YOUR YEAR AND WHY DON'T YOU WAIT.

THIS IS THE FIRST TIME I'VE HEARD OF SOMEBODY OFFERING A JOB WHICH CAN BE READ AS A BRIBE.

>> Ted: THAT'S WHAT SHE CALLED IT AND, AGAIN -- YOU SAID THAT EVERYONE KNOWS KARI LAKE -- I WASN'T AWARE OF THIS.

BUT ADD MAR-A-LAGO, IS SHE WEARING A MIC THERE?

WHAT IS THIS ALL ABOUT?

>> I THINK THERE'S A LOT OF PEOPLE WONDERING, I'VE HAD A LOT OF CONFIDENTIAL CONVERSATIONS WITH KARI LAKE, AS WELL, AND WAS ANYTHING RECORDED OR TAPED?

SHE'S IN THE MIDDLE OF A DEFAMATION LAWSUIT AGAINST COUNTY RECORDING, RECORDER AND DISCUSSING THESE RIGGED ALLEGATIONED.

WE'VE NOT SEEN THE END OF THIS STORY.

ARE THERE OTHER TAPES LAKE HAD AND OTHER TAPES NO ONE IS MENTIONING YET?

WILL WE FIND OUT WHO PUT JEFF DEWIT UP TO THIS.

THEY WAS THETHERE HE IS ON TAPE A YEAR AGO TELLING KARI LAKE, I DON'T THINK HE CAN WIN AND THIS COMES, OF COURSE, ON THE.

>> Melanie: HEELS OF WHEN PRESIDENT TRUMP WAS SUPPOSED TO BE SPEAKING.

>> Ted: THIS IS A TRUMP, A STRONG TRUMP SUPPORTER GOING AGAINST A STRONG TRUMP SUPPORTER.

AS FAR AS THE ELECTION IS CONCERNED, THIS CAN'T HELP KARI LAKE.

>> I THINK TALKING TO PEOPLE ABOUT THIS, ONE OF THE CONCERNS THAT SOME REPUBLICANS HAVE HAD IS, KIND OF HOW THIS DOVETAILS WITH SHE'S RECORDING CONVERSATIONS WITH PEOPLE AND IS SHE GOING TO BE ABLE TO WALK INTO ANY KIND OF A BIG DONOR AND TALK TO THEM AND HAVE A CONVERSATION WITH THEM ABOUT THE ELECTION AND GIVE HER CAMPAIGN MONEY AT THIS POINT.

IF EVERYONE IS AFRAID THEY'RE RECORDED, THEY'LL STAY AWAY FROM HER.

SHE'LL HAVE A DIFFICULT TIME TO GET THE MONEY TO RUN THE RACE SHE NEEDS TO AND TO MOUNT A CREDIBLE CAMPAIGN IF PEOPLE ARE WORRIED THAT EVERY TIME THEY TALK TO HER, WHAT WILL SHE GET?

CAN WE HAVE A CANDID CONVERSATION WITH YOU AND CAN WE TRUST WHAT YOU'LL SAY OR TURN AROUND AND RELEASE A CONVERSATION?

>> TWO WORDS THAT HAD BEEN CIRCULATING SINCE THEN AT THE LEGISLATURE, MARK LAM, THE PINAL COUNTY SHERIFF, A REPUBLICAN CANDIDATE FOR U.S. SENATE AND I'LL BE INTERESTED TO SEE THE FINANCIAL REPORT.

>> Ted: COULD THERE BE A PARACHUTE CANDIDATE COMING IN?

WHAT DO YOU THINK?

WHAT DO YOU THINK, JEREMY?

>> IT'S HARD TO SEE THAT.

KARI LAKE IS THE ELEPHANT IN THE ROOM AND SHE'S GOING TO SUCK UP THE OXYGEN.

THIS IS THE FIRST TIME WE'VE MENTIONED MARK LAM AND SHE'S BEEN AN AFTER-THOUGHT AND I THINK WE ASSUME IT'S LAKE FIRST RUBEN GALLEGO AND NOBODY IS CONSIDERING THE POSSIBLY THAT SOMEONE ELSE COULD BE THE NOMINEE.

IT WOULD BE EXTREMELY DIFFICULT TO BE MORE OF AN ESTABLISHMENT TYPE NOT POPULAR WITH THE PARTY BASE.

>> I MEAN, I DON'T THINK THIS DOES ANYTHING TO HURT KARI LAKE AMONG REPUBLICAN VOTERS AND THE PRIMARY VOTERS WHO LARGELY FAVOR HER TO BE THE U.S. SENATE NOMINEE.

AND I THINK THAT'S WHY IT WAS A BIG PROBLEM FOR JEFF DEWIT.

IT WASN'T JUST WHAT HE DID, BUT HE DID IT TO KARI LAKE IN A LOT A LOT OF WAYS THE FACE OF ARIZONA'S REPUBLICAN PARTY.

SHE LOVED IN THE BASE.

SO FOR THEM TO PUSH HER IN PARTICULAR OUT OF THE RACE, I THINK WAS THE BIG SIN THERE.

>> TO JIM'S POINT, SHE SLAYED THE DRAGON THERE AND THAT ONLY DEEPENS ENTHUSIASM FOR HER AMONG THAT CORE BASE.

>> Ted: BUT WHAT WERE A GENERAL ELECTION?

>> THAT MIGHT BE DIFFERENT.

REMEMBER THAT A FEW DAYS AFTER THIS HAPPENED LAST YEAR, SHE WENT BEFORE CPAC AND SOMEBODY TRIED TO BRIBE ME OUT OF POLITICS AND THEY DIDN'T BELIEVE HER.

FOR EVERYONE ELSE, I'M NOT SURE THIS LOOKS GREAT.

ESPECIALLY WE WITH DEWIT, ESPECIALLY FROM PEOPLE WHO HANDED THE GOVERNOR'S OFFICE TO KATIE HOBBS IN THE FIRST PLACE.

HOW WILL YOU CONVINCE THOSE FOLKS TO COME BACK FOR A DIFFERENT STATE-WIDE RACE WITH THESE THINGS HANGING ON HER HEAD.

>> Ted: YOU MENTIONED DONALD TRUMP WOULD BE HERE AND A BIG FUNDRAISER FOR A PARTY THAT IMMEDIATES SOMENEEDS SOME FUNDS.

HE CANCELED BECAUSE OF A COURT DATE.

IT'S DONE?

>> YES.

IT IS DONE AND OVER AND I THINK THAT WAS, YOU KNOW, SOMETHING OF A FIGURE FIG LEAF FOR WHY HE'S NOT COMING, FOR WHY HE'S NOT COMING.

BUT DEFINITELY, YOU KNOW, THIS THING IS CATHED AND CANCELED AND JEFF DEWIT ORGANIZED THIS AND THEY WERE BANKING ON THIS BEING OF A CASH COW.

THEY WERE SELLING TICKETS FOR $3,000 TO SIT UPFRONT AND IT LOOKS LIKE THEY SOLD 75%, 80% OF THE SEATS IN THE CHURCH AT THE TIME WHEN TRUMP ANNOUNCED HE WASN'T GOING TO COME BACK.

NOW THEY HAVE TO GIVE THAT MONEY BACK.

>> IT'S HARD TO HAVE THE PARTY WHEN THE GUY THAT NEEDS IT IS GONE.

SO WE'LL SEE.

HE'LL BE BACK.

THERE WILL BE MORE FUNDRAISERS.

>> Ted: BEFORE WE GET OFF OF THIS, AS FAR AS A NEXT CHAIRMAN OF THE REPUBLICAN PARTY, WHO WILL THAT BE AND CAN IT BE AN ELECTED OFFICIAL?

AS YOU MENTIONED, ONE ELECTED OFFICIAL SAYS PICK ME.

>> NOTHING IN STATE LAW.

ASKING THE CORPORATION COMMISSION COUNSEL FOR LEGAL GUIDANCE AND THEY CAME BACK AND SAID NOTHING IN COMMISSIONED RULE STATE LAW AND WE'VE SEEN THIS FOR THE DEMOCRATS.

SITTING STATE LAWMAKERS INCLUDING ONE RECENTLY.

I'M NOT SURE WHAT THE BYLAWS SAY ABOUT THIS.

I, TOO,I DON'T KNOW IF THERE'S AN ISSUE BUT IF HE GETS A CHANCE TO CHANGE THAT, THERE'S HIM AND THERE'S GINA SWABOTA AND ANOTHER ELECTED OFFICIAL IN THE PARTY.

I'M NOT SURE IF THERE'S ANYONE ELSE INVOLVED ON SUCH SHORT NOTICE.

AS I MENTIONED BEFORE, PEOPLE GUNNING FOR JEFF DEWIT FOR QUITE SOME TIME.

>> Ted: COULD IT BE A ROCK'EM, SOCK'EM KIND OF THING.

>> THEY WON'T ALLOW THE PRESS IN AND I'M SURE THERE WILL BE LIVESTREAMS ON SOCIAL MEDIA.

IF YOU'RE LOOKING FOR SOMETHING TO DO ON SATURDAY, KEEP AN EYE ON THAT.

>> Ted: TOM HORNE HAD A HOTLINE IN CASE A TEACHER IS TEACHING SOMETHING UNTOWARD OR NOT ALLOW ALLOWED.

THIS IS NOT SUCH A HOT HOTLINE.

>> THEY GOT A FAIR NUMBER OF CALLS AND I THINK THERE WERE OPEN THREE THAT RESULTED IN ANY KIND OF PROBE OR ANY KIND OF INVESTIGATION AND THEN WEB WE ALSO LEARNED THAT THERE WERE NO INVESTIGATIONS.

THAT THE SCHOOL SUPERINTENDENT'S OFFICE SEES THEMSELVES AS THE RECEPTACLE THAT RECEIVES THESE COMPLAINTS AND IT'S UP TO THE SCHOOL DISTRICT THAT'S NAMED TO PROVIDE THE EVIDENCE.

BUT THEY DON'T DO THE INVESTIGATION.

AND THUS FAR, WE'VE HAD NOBODY BOUNCED OUT OR INCRIMINATEED FOR BAD PRACTICES IN THE CLASSROOM.

>> Ted: TENS OF THOUSANDS OF CALLS AND TWO DOZEN WERE REAL COMPLAINTS AND ARIZONA EDUCATION ASSOCIATION SAYS NOT A SINGLE TEACHER HAS BEEN ASKED ABOUT ANYTHING THROUGH THIS HOTLINE.

>> NO.

IN FACT, OF THE REAL COMPLAINTS, I DON'T THINK A SINGLE ONE OF THE SCHOOL DISTRICTS INVOLVED WERE TOLD THEY WERE THE SUBJECT OF THESE COMPLAINTS.

SO I MEAN, IT ALMOST LOOKS LIKE THE THING THAT WAS CLEARLY A POLITICAL STUNT WAS JUST A POLITICAL STUNT AND GOT DELUGED BY PRANKSTERS.

>> Ted: THERE'S AN INVESTIGATOR WITH $70,000 A YEAR TO INVESTIGATE, WHAT?

>> WELL, ORIGINALLY, I THINK WE WERE TOLD TO INVESTIGATE THE COMPLAINTS, THE 40,000 CRANK CALLS AND REAL COMPLAINTS, BUT NOW WHAT THE DEPARTMENT OF EDUCATION IS SAYING, THIS JOB IS INVESTIGATE AND DETERMINE, ARE THESE REAL PEOPLE OR BART SIMPSON CALLS MO'S TAVERN OR SOMETHING.

IT TURNS OUT EVEN WHEN THEY FIGURE OUT IF IT'S A REAL PERSON, IT DOESN'T SEEM LIKE THEY'VE DONE ANYTHING WITH THAT INFORMATION.

LAST YEAR, SEVEN MONTHS AGO, THEY ANNOUNCED THREE ISSUES, THREE DISTRICTS AND THERE'S A BIG PRESS CONFERENCE WITH TOM HORNE.

THE DISTRICT, SEVEN MONTHS LATER HAS NOT BEEN CONTACTED ABOUT THIS KNOWING THEY HAVEN'T TALKED WITH ANYONE.

IF SOMEONE WANTS TO COMPLAIN TO THE DISTRICT, THEY CAN COMPLAIN AND I DON'T KNOW WHY THEY NEED TO USE THE DEPARTMENT OF EDUCATION AS A CONDUIT.

>> I THINK THE FIRST INVESTIGATOR LEFT AND MAYBE THEY GOT TIRED OF SORTING OUT THE CRANK CALLS OR DIDN'T HAVE ENOUGH TO DO.

>> Ted: ANY RESPONSE FROM HORNE ON THIS, ANYTHING?

>> I THINK HIS OFFICE JUST TRIED TO EXPLAIN THAT WE'RE JUST HERE TO COLLECT THE INFORMATION.

>> Ted: INVESTIGATORS WITH A SMALL EYE.

>> YEAH.

>> Ted: A COUPLE THINGS AT THE LEGISLATURE.

JEREMY, THE ETHIC'S HEARING WRAPPED UP, CORRECT?

>> THE SECOND HEARING AND TWO WITNESSES, I BELIEVE THEIR IDENTITIES WERE ANONYMOUS AT THE TIME AND GOES TO THE CORE OF THE COMPLAINTS AGAIN REPRESENTATIVE SUN.

SHE SAID SHE WOULD KILL A LOBBY IT FOR THE CITY IF SHE HAPPENED TO SEE HER IN TUCSON.

THESE COMPLAINTS WERE MADE ANONYMOUSLY TO LAW ENFORCEMENT AND BECAME MORE ANONYMOUS AND THEY TESTIFIED THAT, YES, INDEED, THEY DID HEAR REPRESENTATIVE SUN SAY THAT, KIND OF CAME OUT OF THE BLUE AND TAKEN ABACK.

THEY DID NOT BELIEVE THE COMMENTS WERE MADE IN JEST.

>> Ted: WE HAD TO GET A DEFINITION OF A BALCONY.

SHE SAID, THIS WAS AN INTERESTING WEDNESDAY, DEFENSE, NOT REAL A BALCONY.

>> THAT'S THE AGAINST, IS THAT THERE WASN'T A BALCONY.

THERE'S.THEY SHOW THIS WITH A RAILING.

>> Ted: AND A 20-FOOT DROP.

>> I DON'T THINK I WOULD QUIBBLE WITH THAT OR ARGUE WITH MY REPORTER ON THAT.

>> Ted: WHERE IS THIS HEADING?

>> INTERESTING TWIST AND WE'LL TALK ABOUT IT.

ONE OF THE MEMBERS OF THE ETHIC'S COMMITTEE RESIGNED AS OF TODAY AND I DON'T KNOW WHAT YOU DO.

YOU BRING SOMEBODY IN AND YOU GO BACK TO THE RECORD AND YOU RERUN HEARS.

I MEAN THAT COULD DELAY IT.

BUT BEGIN THAT THE COMPLAINT WAS FILED BY HER FELLOW DEMOCRATS, IT WOULD BE ED EASY TO SUGGEST -- THEY GOT THEIR DIRTY LAUNDRY IN PUBLIC AND WHETHER THEY WANT TO DRIVE HER OUT BEFORE THE ELECTIONS SO SOMEBODY CAN COME IN AND RUN, I'M NOT SURE ON THAT.

>> WE ASKED THE REPRESENTATIVE WHO CHAIRS THE COMMITTEE, WHAT'S THE NEXT STEP AND EXPECTS EXPECTS A REPORT ISSUED AND IF THEY FOUND HER GUILTY OF DISORDERLY BEHAVIOR AND HOUSE RULES THAT LEAD TO EXPULSION, THEY FIGURE OUT WHERE TO GO FROM THERE.

WHERE WE STAND NOW, IT DOESN'T LOOK GOOD.

THE MOST CURIOUS THING WASN'T THE TESTIMONY WE HEARD, BECAUSE WE'VE BEEN FAMILIAR WITH NEED ANSWERS, BUT THE WAY REPRESENT REPRESENTATIVE SUN CONNECTED HERSELF.

ASKING WHO DID YOU TELL ABOUT THIS AND HAVE YOU BEEN RETALIATING AGAINST IN?

SHE GAVE CLOSING ARGUMENTS AND HE CUT THEM OFF.

HE HAD NO WARN HER NOT TO MAKE PERSONAL ATTACKS AND SHE CLAIMED THIS PERSON SHE WAS TRYING TO GOAD ME INTO THIS AND I TOOK THE BAIT AND IT'S UNCLEAR WHY A LOBBYIST DEPENDING ON LAWMAKERS VOTING ON ISSUED WOULD WANT TO GODGOAD A LAWMAKER INTO DOING THIS.

SHE SAID, OK, WE'RE DONE HERE.

>> Ted: WILL SHE BE CALLING THIS A DAY HERE?

>> I THINK THE ODDS LOOK GOOD AND IT'S UP TO REPUBLICANS.

THE DEMOCRATS, I THINK, WILL GO ALONG WITH WHAT THE PUNISHMENT IS FOR HER AND WHETHER THE REPUBLICANS WILL BE ON BOARD TO EDUCATIONEXPEL HER.

IT HAS TO BE A BIPARTISAN AGREEMENT ON WHAT TO DO.

>> Ted: TALK ABOUT THE LAWMAKER THAT RESIGNED ON THE COMMITTEE.

SHE'S A FORCE DOWN THERE AND NOT MANY DEMOCRATS ARE A FORCE AT THE CAPITOL BUT SHE WAS.

>> THIS WAS JENNIFER LONGDON AND ANNOUNCED ON THURSDAY THAT SHE IS RESIGNING EFFECTIVE TODAY AND FOUND EMPLOYMENT WITH A GREAT JOB OFFER IN DOING HEALTHCARE POLICY WITH A NONPROFIT AND SHE'S GONE AFTER TODAY.

SO SHE'S BEST KNOWN FOR BEING AN ADVOCATE FOR PREVENTING GUN VIOLENCE.

SHE'S RUN NUMEROUS, LIKE, GUN CONTROL BILLS AND SHE'S A DEMOCRAT IN A REPUBLICAN CHAMBER.

THEY HAVEN'T GOTTEN ANYWHERE.

BUT SHE GETS A LOT OF ATTENTION BECAUSE SHE HERSELF IS A VICTIM OF GUN VIOLENCE AND SHE'S BEEN PARALYZED FROM THE CHEST DOWN SINCE 2004 AND USES A WHEELCHAIR.

>> Ted: JUST THE VISUAL THERE AND THAT'S A STRONG ARGUMENT JUST SEEING HER AT THE CAPITOL.

BUT GETTING PAST THAT, THE FINAL LAWMAKER TO RESIGN HERE?

>> OPPORTUNITY KNOCKS AND DECIDED TO RUN FOR CONGRESS.

REPRESENTATIVE CANO GOT A FELLOWSHIP AT HARVARD.

AND THE REASONS VARY, I GUESS IS WHAT I'M SAYING.

THERE'S NOTHING IN NOTHING IN THE WATER.

>> Ted: THEY SAY 1.7 BILLION-DOLLAR1.7BILLION-DOLLAR DEFICIT AND THE PRIMARY CULPRIT, THAT'S THEIR WORD, A FLAT TAX.

>> THE INDIVIDUAL INCOME TAX IS WHAT IS DRIVING DOWN STATE REVENUES RIGHT NOW AND YOU KNOW, FUELING THIS RED INK THAT THE STATE IS FACING.

THE NON-PARTISAN LEGISLATIVE BUDGET ANALYSTS, WHEN THEY'VE DONE THEIR ANALYSIS AND SEE ABOUT $800 MILLION IN THE CURRENT FISCAL YEAR AND PUSHING $900 MILLION IN THE UPCOMING FISCAL YEAR, THE ONE THAT BEGINS IN JULY.

THAT'S WHAT LAWMAKERS HAVE TO TACKLE AND WHAT THEY HAVE TO TRY TO FIGURE OUT, HOW DO THEY FILL IN THOSE GAPS AS THEY'RE CRAFTING THEIR BUDGET.

THE IMPLEMENTATION OF THE FLAT TAX, 2023 WAS THE FIRST YEAR IT WAS IMPLEMENTED AND THEY CALCULATED -- THEY ESTIMATED ABOUT $2.3 BILLION IN TERMS OF LESS REVENUE FOR THAT AND IT'S BEEN MORE THAN THAT.

IT'S ABOUT 2.7, 2.8 BILLION SO FAR THAT HAS GONE.

WE'RE ONLY HALFWAY THROUGH THE FISCAL YEAR.

THEY TAKE THAT INTO ACCOUNT, LOOKING AT $840 BILLION.

>> Ted: TAX REVENUES AREN'T AS HIGH AS EXPECTED.

>> ESPECIALLY RETAIL SALES IS WHAT'S DRAGGING IT DOWN.

>> SURPRISINGLY, CORPORATE INCOME TAX, IT'S BEEN A GROWTH CATEGORY AND IT'S DOWN AND I WENT THROUGH A FINANCIAL ANALYSIS COMMITTEE YESTERDAY AND THE ECONOMISTS WERE, LIKE, I'M NOT SURE IF THIS IS A BLIP OR A NEW TREND.

BUT BACK TO THE FLAT TAX, I MEAN, PART OF THE PROBLEM, YOU DROP THE RATE AND SO EVERYBODY, EVERYBODY GOT A TAX CUT.

VERY SMALL ON THE LOW INCOME END.

BUT THEY ALSO -- SO THEY UNDERESTIMATED HOW MUCH MONEY IT WOULD TAKE OUT OF THE BUDGET AND SPEND ALL THIS MONEY LAST YEAR.

>> Ted: AND SPENDING ALL THAT MONEY LAST YEAR, JEREMY, THAT IS GONE NOW.

MINE, YOUYOU..YOU HAVE TO CLAW THAT BACK.

>> OTHER TRANSPORTATION PROJECTS WHERE THEY'VE MADE PLANS AND HAVEN'T BEEN SPENDING THE MONEY AND OTHER MONEY HAS BEEN SPENT AND CLAW IT BACK WHERE THEY CAN AND I THINK THAT'S WHAT A LOT OF FOLKS IN THE CAPITOL ARE LOOKING AT.

THE MAIN ISSUE WITH THE BUDGET, HEY, WE HAD MONEY AND TAX REBATES AND RODEOS AND ROADS AND ALL KINDS OF OTHER THINGS.

AND ONE THING TO KEEP IN MINE WITH THE FLAT TAX, YEAH, THAT'S COST THE STATE A LOT OF MONEY AND BASED IT ON REVENUE FORECAST FOR THE TAX RATE AS IT IS NOW.

ULTIMATELY, THE PROBLEM SEEMED TO BE MORE THAT WE DON'T HAVE AS MUCH MONEY FROM THE TAX RATE THAT EXISTS NOW AS THE ECONOMISTS IN THE FORECAST THOUGHT WE WOULD HAVE.

>> Ted: SO WHAT DO WE EXPECT TO SEE FROM THE LEGISLATURE, JIM?

[ Laughter ] >> A LOT OF FIGHTING AND EVEN AMONGST THEMSELVES ON HOW TO TACKLE THIS PROBLEM.

THE FIRST THING THEY HAVE TO AGREE ON IS WHAT DOES REVENUE LOOK LIKE GOING FORWARD?

WHAT DOES REVENUE LOOK LIKE FOR THE REST OF THE YEAR AND GOING FORWARD AND THAT SETS BOUNDARIES TO FILL IT IN.

>> Ted: GOVERNORS RELATIVELY OPTIMISTIC.

>> SHE'S PROPOSED THAT WE CAN SAVE MONEY BY GETTING RID OF THE ESA PROGRAM OR PUTTING SOME LIMITS ON IT.

AND ALSO ELIMINATING THE SCHOOL TUITION ORGANIZATION TAX CREDIT PROGRAM, BOTH OF WHICH ARE NONSTARTERS.

THEY'LL HAVE TO LOOK ELSEWHERE AND SENATE WARREN PETERSEN SAID IT WON'T HEARD TO DO TRIMMING.

I WOULD EXPECT NOT JUST THE ONE-TIME MONEY BUT AGENCY CUTS.

>> Ted: SORRY TO CUT YOU OFF, BUT WE'RE OUT OF TIME.

THANKS FOR JOINING US.

THAT'S IT FOR NOW.

I'M TED SIMONS.

YOU HAVE A GREAT WEEKEND!