>> Ted: NEXT ON ARIZONA HORIZON, IT'S THE JOURNALIST'S ROUNDTABLE AND A LOOK AT THE WEEK'S TOP STORIES INCLUDING THE GOVERNOR'S STATE OF THE STATE ADDRESS AND THE START OF THE LEGISLATURE SESSION.

THE GOVERNOR'S ROUNDTABLE IS NEXT ON ARIZONA HORIZON.

>> THIS HOUR OF LOCAL NEWS MADE POSSIBLE FROM CONTRIBUTIONS FROM MEMBERS OF 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.

WE HAVE MARK BRODY, JEREMY D URINATIONDUDAAND BOB CHRISTIE.

A 30-THOUSAND FOOT FLYOVER AND THE GOVERNOR RELEASED A BUDGET AND OH, BOY, A LOT GOING ON.

>> INCLUDING HOW TO CLOSE A SHORTFALL, WHICH IT SEEMS THERE'S A LITTLE BIT OF DEBATE, MAYBE, OVER HOW MUCH THE SHORTFALL IS.

THE SIDES ARE FIGHTING HOW MUCH THEY HAVE TO SPEND AND IT WILL BE INTERESTING TO SEE HOW IT GOES DOWN WITH COMING TO A CONSENSUS ON WHAT THE ACTUAL SHORTFALL IS BUT THE LAST SIX MONTHS AND THE NEXT ONE THEY'LL BE BUDGETING FOR IN JULY.

>> Ted: THIS BUDGET IS RELEASED ON THE SAME DAY AND WE FIND OUT THERE'S A $1.7 BILLION SHORTFALL?

>> IT LEADS TO A BIT OF DISPARITY IN HOW MUCH NEEDS TO BE CUT.

THE GOVERNOR IS LOOKING AT MAYBE 850 MILLION OR SO CUMULATIVE DEFICIT FOR THIS FISCAL YEAR AND NEXT FISCAL YEAR AND LEGISLATURE, LOOKING AT 1.7 BILLION BETWEEN THE TWO YEARS.

THE GOVERNOR HAS 1 UPPER 1.7 BILLION IN CUTS AND THAT IS A LOT OF NEW SPENDING AND SOME IS ONE TIME AND PROBABLY ONGOING.

THERE'S A LOT FOR THE TWO SIDES TO HASH OUT AND WE HAVE A LONG WAYS TO GO.

>> Ted: BOB, DOZENS OF ONE-TIME PROJECTS ON THE CHOPPING BLOCK AND SOME OF THE OTHER THINGS AND WE MAY AS WELL GET TO IT.

ESA'S, SHE HAS RESTRICTIONS IN THERE.

>> THAT'S RIGHT.

HER STATE OF THE STATE ADDRESS, SHE SAID HE WANTED TO REFORM THE VOUCHER PROGRAM BY THE REPUBLICAN-CONTROLLED LEGISLATURE BY THEN GOVERNOR DUCEY AND SHE WANTS TO REINSTATE A 100 DAY RULE WHICH SAID IN ORDER TO QUALIFY FOR A VOUCHER, YOU NEED TO GO TO A PUBLIC SCHOOL FOR 100 100 DAYS.

THE VAST MAJORITY OF THOSE, BASED ON THE GOVERNOR'S FIGURES AND LOOKING AT PUBLIC SCHOOL ENROLLMENT AND CHANGES AND OUR PRIVATE SCHOOL STUDENTS HAVE ALWAYS GONE TO PRIVATE SCHOOLS.

THEY WON'T QUALIFY AND THE GOVERNOR STAFF WHO BRIEFED THE MEDIA ACKNOWLEDGED THEY DON'T EXPECT THE PEOPLE TO COME TO PUBLIC SCHOOLS.

THEY EXPECT THEM TO STAY IN PRIVATE SCHOOL TO PAY THEIR OWN WAY.

OF COURSE, THIS IS A NONSTARTER WITH THE REPUBLICAN-CONTROLLED LEGISLATURE.

THEY SAID A WEEK AGO WHEN SHE ANNOUNCED REFORMED, THAT WOULDN'T HAPPEN.

THEY WERE BEHIND IT.

THEY'RE PUTTING THAT IN THE BUDGET AND IT A FIGHT THEY'LL HAVE.

>> Ted: THAT'S AN EXPLOSIVE NONSTARTER FOR THE REPUBLICANS.

>> A LOT OF TALK WHEN THE GOVERNOR FIRST RELEASED HER PLAN WITH WHAT TO DO WITH THE ESSAYS.

THERE WAS A COMPARISON SAYING WE SHOULD DO AWAY WITH THE UNIVERSAL PROGRAM TO THIS YEAR HAVING IDEAS INCLUDING THE 100-DAY REQUIREMENT AND FINGERPRINTING AND THINGS LIKE THAT.

THERE WAS SOME THOUGHT THAT MAYBE SOME OF THESE MIGHT BE THINGS THAT REPUBLICANS CAN GET ON BOARD WITH.

BUT BOB IS PROBABLY RIGHT AND THE REPUBLICANS SAID SO THAT THE 100-DAY RULE IS NOT ONE OF THOSE THINGS.

IF THERE'S SOMETHING TO GET BEHIND, THAT'S NOT IT.

>> THAT WILL TAKE KIDS AND FORCE THEM TO STOP USING ESA'S OR FORCE THEM TO GO THROUGH A CUMBERSOME PROCESS OF GOING TO A NEW SCHOOL FOR 100 DAYS AND QUALIFY FOR YOUR $7500 A YEAR OR WHATEVER THE VOUCHER WILL BE.

THAT WILL GUT A LOT OF THE USAGE OF THE PROGRAM AND FOR SOME OF THE OTHER REFORMS THAT GOVERNOR HOBBS HAS PROPOSED, REPUBLICANNED VIEW THIS AS KIND OF STEP-BY-STEPS INCREMENTAL S STEPSTEPS TO WIPE OUT THE PROGRAM.

SO THIS IS JUST A RIGHT LINE THAT THE REPUBLICANS WON'T PASS THE CONVERSATION IS GOING ON GOING ON FOR A LONG TIME.

>> Ted: THEY'RE MOVING MONEY OUT OF A LOT OF DEDICATED FUNDING AND EXPLAIN WHAT THAT MEANS AND WHY THAT COULD HELP AS FAR AS THE BOTTOM LINE.

>> IF YOU REMEMBER THE GREAT RECESSION 12, 14 YEARS AGO NOW, THE STATE WAS IN A HUGE BUDGET HOLE AND DID A LOT OF FUN SWEEPS AND THEY DID A LOT OF REVERSIONS WHERE THEY SAID, WE ALLOCATED THIS TO AN AGENCY OR TO A PROGRAM OR TO A ROAD EXPANSION AND WE'RE TAKING THAT BACK.

THAT'S WHAT THEY'RE DOING IN THIS BUDGET.

THEY'RE REVERTING ALMOST $400 MILLION IN NEW TRANSPORTATION SPENDING FOR ROADS AND BRIDGED AND INTERCHANGES THAT PASSED IN LAST YEAR'S BUDGET WITH A HUGE SURPLUS AND TAKING THAT BACK.

THE GOVERNMENT WANTS IT TAKEN BACK.

THESE ARE PROJECTS FOR CONSTRUCTION ANYWAY AND THE MONEY ISN'T SPENT.

SO WE'LL JUST HOLD ON TO IT.

THERE'S A $333 MILLION PAYMENT DUE TO THE WATER AUGMENTATION FUND AND THIS IS GOVERNOR DUCEY'S BIG APPLE TO HAVE PLAN TO HAVE A DESALLIZATION PLAN.

LAST YEAR WAS SUPPOSED TO BE 330 MILLION AND GAVE HIM HALF.

THIS YEAR, 33 MILLION IS IN THE GOVERNOR'S BUDGET.

SO 300 MILLION TAKEN OFF THE TABLE AND STUCK WITH 500 MILLION INSTEAD OF A BILLION.

I COULD GO OVER, BUT THERE'S A LOT OF CLAWBACK.

YOU HAVE IT OR YOU WON'T GET IT.

>> Ted: REPUBLICANS CALLED, QUOTE, WILDLY UNREALISTIC PARTISAN PROPOSAL.

>> YEAH.

WHAT'S INTERESTING, THOUGH, ABOUT WHAT BOB SAID, I'VE SPOKEN WITH A FEW REPUBLICAN LAWMAKERRED ANDLAWMAKERSAND CONSULTANTS SAYING IF YOU TALK TO THE CONSTRUCTION FOLKS, THE PEOPLE DOING THIS WORK, THEY DON'T MIND THEY BECAUSE THEY DON'T ENVIRONMENT LABOR FOR IT HAVE THE LABOR FOR IT ANYWAY.

AS LONG THEY PUSH THE PROJECT OUT AND NOT CANCEL IT ALL TOGETHER, IT'S NOT A BIG DEAL.

YOU WONDER HOW MUCH IS THE REPUBLICANS SAYING WE DON'T LIKE THIS BECAUSE WE'RE OF DIFFERENT PARTIES AND THAT'S WHAT WE'RE SUPPOSED TO SAY.

AT THE END OF THE DAY, THEY HAVE TO COME UP WITH AN AGREEMENT.

>> Ted: THERE WAS ALSO IN THE GOVERNOR'S BUDGET PLAN, GETTING RID OF, I GUESS, THE SCHOOL TUITION ORGANIZATIONS, THE STO'S AND CUTTING THEM WITHOUT GETTING RID OF THEM ALL TOGETHER.

WHAT ARE THEY AND CAN YOU GET RID OF?

OF THIS?

THE REPUBLICANS SAID YOU CAN'T DO THIS.

>> IT'S DIFFICULT AND THEY'RE NOT GOING TO DO THIS.

THESE ARE TAX CREDITS INDIVIDUALS AND CORPORATIONS GET FOR CONTRIBUTING TO ORGANIZATIONS PROVIDING SCHOLARSHIPS FOR TUITION FOR PRIVATE SCHOOL, FOR STUDENTS, AND THIS HAS BEEN A LIGHTNING ROD OF THE LEGISLATURE BETWEEN THE TWO PARTIES.

DEMOCRATS HATE AND IT REPUBLICANS LOVE IT.

THEY MADE A GOOD POINT, GETTING RID OF A TAX CREDIT QUALIFIES A TAX HIKE AND IN ARIZONA, YOU NEED A 2/3 MAJORITY.

ONE AGAIN, JUST LIKE THE ESA THING, THIS WILL BE A DEAD ISSUE AND MAYBE ANOTHER CONVERSATION STARTER BUT NOT SOMETHING THAT WILL GO TO THE BUDGET DEFICIT.

>> THE STO PROGRAM, IF THE REPUBLICANS WILL MOVE ON ANYTHING, THIS WOULD BE A NEGOTIATION AND IF THEY'LL MOVE ON ANYTHING ON THE SCHOOL VOUCHER, PRIVATE SCHOOL, SHOULD THE STATE PAY FOR PRIVATE SCHOOLS, THAT'S ONE THEY MIGHT BE AMENABLE TO.

MOST OF THESE KIDS WHO TAKE THESE STO'S ARE ELIGIBLE FOR VOUCHERS.

THEY WON'T TOUCH VOUCHERS AND THEY'RE EXPECTED TO BE OTHER DECREASE IN THE ORGANIZATIONS WHICH HELP PARENTS PAY THE TUITION TO PRIVATE SCHOOLS.

YOU CAN'T TAKE BOTH.

IF YOU ELIMINATE OR MAYBE DO SOMETHING LEGITIMATE AND AGREE TO THAT PROGRAM, THAT WILL SHRINK ANYWAY.

>> Ted: ARE WE LOOKING AT A FRAMEWORK HERE?

IS THIS A FRAMEWORK WITH A CAPITAL F KNOWING YOU CAN WHEEL AND DEAL DOWN THE LINE?

>> THAT'S THE MULTIBILLION DOLLAR QUESTION, RIGHT.

IT SEEPS AS SEEMS THIS YEAR WILL BE THE BUDGET PROCESS AND A LOT OF FOLKS THINKING MAYBE WE WOULD HAVE LAST YEAR.

A DIFFERENCE BETWEEN A SHORTFALL AND THE DEFICIT LAST YEAR.

BUT LAST YEAR WAS WHAT I'VE HEARD REFER TO AS THE OPRAH BUDGET, WHERE LOOK UNDER YOUR SEAT TO GET $700 MILLION TO SPEND AS YOU WANT.

AS OPPOSED TO REAL NEGOTIATION AND GIVE AND TAKE.

THIS YEAR, IT SEEMS LIKE THAT IS WHAT WE'LL HAVE, THAT YOU CAN'T GIVE OUT THE FRY MONEY FREE MONEY TO PEOPLE.

>> NEITHER SIDE WILL GET EVERYTHING THEY WANT.

BUT I THINK WHAT THIS EXECUTIVE BUDGET PLAN SERVES TO DO IS LAY OUT WHAT THE GOVERNOR'S TOP PRIORITIES ARE AND WHAT WILL SHE FIGHT FOR?

SHE PUT IN, FOR EXAMPLE, $100 MILLION TO OFFSET FEDERAL MONEY FOR CHILDCARE, WHICH IS SOMETHING THEY BUTT IN BUDGET AS ONE TIME AND THERE WILL BE NEW EMPLOYEES FOR FRAUD AND THAT KIND OF THING.

THE ACCESS PROGRAM HAS BEEN IN THE NEWS.

SO IT LAYS DOWN A MARKER FOR THE PRIORITIES THE GOVERNOR WILL GO TO BAT FOR AND EVERYTHING ELSE IS NEGOTIABLE.

>> SHE HAS A MEDICAL SCHOOL FOR FLAGSTAFF FOR NAU AND SHE'S GOT IN THERE SOME HOUSING TAX CREDITS OR MORTGAGE ASSISTANCE FROM MIDDLE INCOME OR LOW-INCOME ARIZONANS SO THEY CAN AFFORD A HOUSE.

WE KNOW THE HOUSING PRICES IN PHOENIX, ESPECIALLY METRO, HAS SOARED, AND ACROSS THE COUNTRY BUT FEEDBACK PHOENIX METRO HAS DOUBLED OR TRIPLED.

I COME BACK TO THE MANTRA, IT'S EASY TO GET A BUDGET WHEN THERE'S NO MONEY AND MUCH HARDER WENT THERE'S A SURPLUS.

LAST YEAR, WE DRUG IT OUT FOR SIX MONTHS AND THIS YEAH YEAR, THERE HAS TO BE SOME.

>> Ted: LET'S CIRCLE BACK.

WE HAVE THE BUDGET AND MORE WILL COME OUT BECAUSE IT WAS RELEASED AN HOUR OR SO AGO.

MARK, CIRCLE BACK TO THE GOVERNOR'S STATE OF THE STATE ADDRESS, THE TONE AND TENOR AND WHAT DID YOU SEE?

>> SHE SPENT A LOT OF TIME TALKING ABOUT THE BORDER WHICH A LOT OF FOLKS WERE SURPRISED BY, ESPECIALLY TO THE EXTENT TO WHICH SHE -- NOT BY NAME, BUT WAS HARSH ON THE BIDEN ADMINISTRATION AND SOME OF THE STUFF THAT THEY HAVE OR MORE TO THE POINT HAVE NOT DONE.

>> Ted: WERE YOU SURPRISED BY THAT, STARTING AT THE BORDER?

>> I REALLY HAD NO IDEA WHAT TO EXPECT, BUT I'VE HEARD FROM ANOTHER PEOPLE THEY WERE SURPRISED.

THAT LEADS ME TO BE SURPRISED.

SHE TRIED TO IN SOME AREAS STRIKE A TONE OF BIPARTISAN AND TALKED ABOUT ABORTION ACCESS AND TALKED ABOUT SOME OF THE OTHER ISSUES THAT ARE CLEARLY MORE DEMOCRATIC ISSUES.

SO, A LITTLE BIT OF EVERYTHING IN THERE, IT SEEMS LIKE.

>> Ted: BEFORE THE STATE OF THE STATE ADDRESS, WE HAD THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE KIND OF GIVE MINI-SPEECHES THEMSELVES THAT SOUNDS LIKE THEY WERE GIVING A REBUTTAL BEFORE THE SPEECH WAS MADE.

THAT'S AWFUL.

I DON'T REMEMBER THAT HAPPENING BEFORE.

>> NO, WE'VE BEEN AT THE CAPITOL 16 YEARS AND I DON'T THINK WE'VE SEEN ANYTHING LIKE THAT.

INCLUDING DURING THE THAT NAPOLITANO YEARS.

THIS IS DEFINITELY KIND OF A NEW DEVELOPMENT AND SOMETHING VERY MUCH SPECIFICALLY IN A DEMOCRATIC GOVERNOR AND DIVIDED GOVERNMENT AND FORESHADOWING FOR WHAT THIS SESSION WILL LOOK LIKE.

WE DID SEE, PERHAPS, A LESS PARTISAN TONE IN THE GOVERNOR'S SPEECH THAN LAST YEAR.

LAST YEAR CAME OFF AS PARTISAN.

LAWMAKERS WERE BOTHERED BY THAT AND SOME OF THE PARTISAN THINGS ON ABORTION AND ESA'S.

MAYBE MORE STUFF WHERE THE TWO SIDES CAN FIND SOME AGREEMENT AND WONKY POLICY TYPE STUFF, A LOT OF WATER.

>> Ted: THE WATER, SHE BASICALLY SAYS, I'M TIRED OF WAITING AROUND HERE AND IF YOU DON'T DO SOMETHING, I WILL.

THE REPUBLICAN RESPONSE IS, IF YOU DO SOMETHING, WE'LL SUE.

>> THEY HAVE TO SAY THAT AND THE GOVERNOR, THE GOVERNOR HAS POWER.

AND THIS IS YEAR TWO OF HER ADMINISTRATION AND THEY LEARNED LAST YEAR ALL YOU HAD TO DO IS SEE 143 VETOES THAT THE GOVERNOR HAS POWER.

THEY HAVE TO FIGURE OUT HOW TO WORK TOGETHER.

THE GOVERNOR ALSO IS TUSH -- I THINK IT WAS SMART FOR HER TO SAY THAT IN SOME WAYS.

JAN BREWER, IN '13, SHE WANTED MAIDMEDICAID EXPANSION AND SHE WANTED TO GET IT BOARD BECAUSE I HAVE THE VOTES.

SHE DOESN'T NECESSARILY HAVE THE VOTES, BUT SHE HAS A VETO PAY AND THEY HAVE TO WORK WITH HER.

AND THAT, I THINK, WAS SMART FOR HER TO REMINDED THEM.

>> ON THE WATER THING, THERE'S DIFFERENT POLICIES AND DIFFERENT THINGS ON HER OWN AND DIFFERENT THINGS SHE NEEDS THE LEGISLATURE FOR.

I DON'T KNOW IF SHE GETS THAT, BUT THINGS ON HER OWN IS CREATING A NEW WAY FOR CITIES TO DESIGNATED WATER PROVIDERS AND THIS IS A WAY AROUND THE MORATORIUM SHE ANNOUNCED LAST YEAR ON NEW HOME BUILDING IN BUCKEYE AND QUEEN CREEK.

AND SHE ROLLED BACK SOME OF THE PUBLIC PERCEPTION PROBLEMS.

SHE CAN DO THAT ON HER OWN EXPECTED TO BE DONE.

THE OTHER STUFF, THERE'S REPUBLICANS IN THE LEGISLATURE KNOWN AS WATER PEOPLE AND DIDN'T REALLY LIKE WHAT THEY HEARD FROM HER.

KIND OF NEW RESTRICTIONS ON THE WILDCAT SUBDIVISION.

THAT'S TRICKIER.

SHE CAN DO STUFF ON HER OWN, OF COURSE.

>> I'VE BEEN HERE 20 PLUS YEARS IN ARIZONA NOW AND WATER IS THE ONE ISSUE WHERE BIPARTISANSHIP RULES THE DAY.

IT'S INTERESTING NOW THAT WE ARE IN THIS SITUATION IF THAT CONTINUES TO BE THE CASE.

THAT IF REPUBLICANS AND DEMOCRATS CAN GET TOGETHER ON SORT OF THE WONKY POLICY STUFF, THAT THEY'LL HAVE TO DEAL WITH IT LIKE GROUNDWATER AND WILDCAT SUBDIVISIONS AND DESALINATION OUR AUGMENTING WATER SUPPLIES OF THE WASTE WATER RECYCLING.

THAT'S INTERESTING TO WATCH GOING FORWARD.

>> Ted: IS WATER THE ONE ISSUE WHERE YOU CAN GET BOTH SIDES -- I MEAN, DEMONIZING THE OTHER SIDE IS NOW JUST THAT.

BUT WITH WATER, CAN YOU GET SERIOUS CONVERSATION HERE AND NOT LOOK AT THE OTHER SIDE AS IF THEY'RE DEVIL IN CARNATE AND SAY, OB, OK, WE CAN MOVE A LITTLE HERE AND THERE?

>> THE GOVERNOR, SHE LAID OUT LEGITIMATE POLICY CHANGES THAT SHE THINKS ARE NECESSARY.

THERE CAN BE CHANGES TO STATUTE THAT PROTECT ARIZONA'S WATER SUPPLY, THAT KEEP THINGS FROM HAPPENING LIKE LEASING STATE LAND TO SAUDI ARABIA ALFALFA GROWERS AND CAN BE BIPARTISAN.

>> Ted: AT LEAST WITHOUT THE DEMONIZATION OF THE OTHER SIDE.

>> IT WAS BIPARTISAN AND EVERYBODY KNEW THEY HAD TO ACT.

>> Ted: WE'LL LEARN MORE ABOUT THE BUDGET AND LEGISLATURE AND LET'S TALK ABOUT OTHER THINGS INCLUDING KARI LAKE LOSING IN COURT AGAIN.

>> THIS IS THE MARICOPA COUNTY RECORDER SUING FOR DEFAMATION BASED ON WILD ACCUSATIONS SHE'S BEEN MAKING, SPECIFIC ACCUSATIONS WHICH SHE AND HER ATTORNEYS DESCRIBE AS RHETORIC AND HYPERBOLE AND THE JUDGE SAID, NO, YOU'LL HAVE TO GO TO COURT AND PROVE THIS.

SHE ASKED THE COURT OF APPEALS TO RECONSIDER AND DECLINED TO TAKE JURISDICTION.

NOW THE TRIAL PORTION AND MOST IMPORTANTLY, DISCOVERY NOW AND THIS WILL BE PROBABLY KIND OF A KILLER FOR LAKE BECAUSE THE ALLEGATIONS THAT SHE IS MAKING THAT STEVEN RITCHER SABOTAGEED THESE MACHINES TO GET ELECTED.

IF YOU REMEMBER, THE MACHINES WEREN'T ACCEPTING THE BALLOTS AND LONG LINES.

SHE SAYS THIS IS DELIBERATELY CONTINUED TO HURT HER CAMPAIGN.

SHE HAS TO SHOW IN DISCOVERY USING THE BASIS FOR THAT CLAIM AND THAT'S A PROBLEM.

THERE'S ABSOLUTELY ZERO BASIS FOR THAT CLAIM.

>> Ted: MARK, EXPLAIN WHY THIS IS A BAD THING FOR KARI LAKE.

IF I THINK YOU DID SOMETHING WRONG AND YOU FILE A DEFAMATION SUIT, I GET TO PROVE WHAT I HAD THAT MADE ME SAY IT IN THE FIRST PLACE.

SHOULDN'T SHE BE, LIKE, OK, HERE WE GO AND WHY IS SHE TRYING TO STOP THIS?

>> TO JEREMY'S POINT, AT LEAST SO FAR, WE'VE NOT SEEN EVIDENCE THAT STEVEN RITCHER DID ANY OF THE THINGS SHE'S SUGGESTING AND TO JEREMY'S POINT, THE SPECIFICITY OF THE ALLEGATIONS.

IT'S NOT LIKE SHE SAID HE BUNGLED THE ELECTION OR SHE DIDN'T EVEN SAY HE INTENTIONALLY BUNGLED THE ELECTION BUT HAD SPECIFIC CLAIMS ABOUT WHAT SHE THINKS HE DID.

IF THERE'S NO EVIDENCE TO SUGGEST THAT HE DID ANY OF THOSE THINGS OR SOME OF THOSE THINGS, IT'S HARD TO SHOW THAT IN COURT.

>> THIS IS A TOUGH FIRST AMENDMENT ISSUE.

SHE'S A POLITICIAN ON THE CAMPAIGN TRAILER POST CAMPAIGN TRAILER THE PRE-CAMPAIGN FOR THE NEXT CAMPAIGN TRAIL AND HER ARGUMENT, LOOK, I'M IN THE PUBLIC SPHERE AND JEREMY SAYS, HYPERHYPERHYPERBOLE.

YOU CAN'T MUZZLE FIRST AMENDMENT SPEECH BECAUSE SOMEBODY IS OFFENDED, EXCEPT IF SHE GOES OVER THE LINE.

THAT'S THE LEGAL TEST.

THAT COULD BE A WAKE-UP CALL FOR SOME POLITICIANS WHO HAVE GONE OVER THE LINE AND WHAT THEIR HYPERBOLE IS.

>> Ted: DISCOVERY AND ONCE WE GET THERE.

IF YOU CAUSE HYPERBOLE, YOU'RE BASICALLY SAYING, "I'M FULL OF IT."

>> EXACTLY.

THAT'S A PROBLEM FOR HER OR DISCOVERY IS YOU HAVE TO SHOW YOUR EMAIL DATABASE.

WHO GAVE YOU ADVICE TO SAY THAT?

HOW DID YOU DISCUSS IT?

WAS IT DISCUSSED OR WAS IT JUST OFF THE CUFF.

IS?

>> IS THERE A PAPER TRAIL TO CONFIRE TO COMECONSPIRE TO COME UP WITH THIS TO PROVE IT WAS MALICE?

YOU HAVE TO SHOW MALICE, RIGHT?

>> Ted: RIGHT.

>> SO IT'S A PROBLEM FOR HER DEPENDING ON WHAT COMES OUT OF DISCOVERY.

>> ARIZONA HAS AN ANTI-SLAP STATUE, THE STRATEGIC LAWSUITS AGAINST PUBLIC PARTICIPATION AND THAT GOT STRENGTHENED LAST YEAR OR THE YEAR BEFORE AND LAKE WAS BANKING ON THAT TO GET THIS CASE DISMISSED.

TO AVOID HAVING TO GO TO COURT IN THE FIRST PLACE UNDER THAT POLITICAL RHETORIC AND FOR DECADES, THERE'S BEEN SO MUCH PROTECTION AND THE ACTUAL MALICE STANDARD.

ON WHAT YOU CAN SAY ABOUT A PUBLIC FIGURE AND HOPING TO GET THAT DISMISSED AND SIDE-STEPPING ISSUES LIKE, IS WHAT YOU SAID ACTUALLY TRUE?

THAT'S WHAT SHE WANTED THE COURT OF APPEALS TO RECONSIDER AND RECONSIDER WHETHER THE SUPERIOR COURT JUDGE MADE THE CORRECT DECISION.

THE COURT OF APPEALS WON'T DO THAT AND SHE HAS TO PROVE WHETHER THIS IS TRUE OR NOT.

>> Ted: THE IMPACT ON THE SENATE RACE?

>> THAT'S SUPER INTERESTING, RIGHT.

SHE'S A BIG SUPPORTER OF PRESIDENT TRUMP AND HE SEEMS TO BE USING THE LAWSUIT AGAINST HIM AS A PART OF THE CAMPAIGN STRATEGY.

IT WILL BE INTERESTING TO SEE WHAT, IF ANYTHING, KARI LAKE RELATIVE TO HER CAMPAIGN.

IF IT HURTS HER, IF SHE TALKS ABOUT IT.

THAT WILL BE INTERESTING TO WATCH GOING INSIDE.

>> Ted: WHAT DO YOU THINK, BOB?

>> IF SHE MAKES IT THROUGH THE PRIMARY, SOME OF THIS DISCOVERY WILL COME OUT AND PROBLEM A PROBABLY A YEAR BEFORE IT GOES TO TRIAL.

IF IT'S PUBLIC AND OFTEN IS, WHY WOULDN'T STEVEN RITCHER'S LAWYER INSIST, IT COULD HER HURT.

>> Ted: JEREMY, WHAT IS THE COMMERCE AUTHORITY AND WE HAVE THE AGENCY DIRECTOR HERE NUMEROUS TIMES, BUT SOME SAY THE COMMERCE AUTHORITY, IT'S UNFAIR AND NEVER BEEN A GOOD THING AND THEY WANT IT ADIOS.

BOY W OH,, OH, BOY, THAT'S KICKING UP DUST.

>> THE CONGRESS AUTHORITY REPLACING THE PRIVATEN IT PRIVATE ENTITY BACK IN 2011.

THEY'RE TASKED WITH FOCUSING ON BIG TICKET, MAJOR CORPORATE INVESTMENTS LIKE THIS, SEMICONDUCTOR PLANS AND THE THING WE'RE SAYING THERE.

A LOT OF TAX INCENTIVES WHICH A LOT OF THE FREEDOM CAUCUS AND FOLKS ON THE LEFT DISLIKE.

YOU HAVE SENATOR JAKE HOFFMAN WHO IS UPSET ABOUT THEM SPENDING A FEW MILLION DOLLARS, WHINING AND DINING OUT OF THE STATE EXECUTIVES AND SENDING FOLKS TO THE SUPER BOWL.

HE WANTS TO ABOLISH THIS AGENCY.

GOVERNOR HOBBS WHO VOTED ALLEGATION THIS BACK IN 2011, AGAINST THE CHAMBER OF COMMERCE AND YOU'LL NEVER GET A SIGNATURE ON A BILL TO ABOLISH THIS.

BUT THE PROBLEM FOR THE COMMERCE AUTHORITY, YOU NEED TO PASS LEGISLATION REAUTHORIZING IT WHICH IS PRO FORMA PROFITS.

IFIF THEY DECIDE TO GO ALONG WITH THIS, THAT WOULD BE PROBLEMATIC, THAT COULD BE IT.

>> THIS WOULD HAVE TO WORK SOME KIND OF THING OUT.

YOU WONDER WHAT THE GOVERNOR, THE FOLKS ALIGNED IN THE BUSINESS COMMUNITY COULD TRADE TO THE JAKE HOFFMANS AND WARREN PETERSENS TO GET THAT THROUGH.

>> Ted: THE CRACKS IN THE REPUBLICAN SIDE, BAIL, BASICALLY, BETWEEN THE MAGA CROWD AND BUSINESS INTERESTS, IT SEEMS LIKE THIS IS WIDENING.

>> THIS IS A MAJOR PROBLEM FOR THE FREEDOM CAUCUS.

IF ANYTHING CAN PUSH THEM BACK POLITICALLY, IT WILL SOMETHING LIKE THIS.

IT'S ATTACKING THE VERY BUSINESS AGENCY, THE CONGRESS AUTHORITY, WHICH ALL YOU HAVE TO DO IS LOOK AT CHANDLER AND YOU CAN TICK OFF DOZENS AND DOZENS OF PROJECTS.

WE NEED THE ARIZONA CHAMBER OF CONGRESS GOING AFTER THE CAUCUS AND BUSINESS REPUBLICANS WILL DO THE SAME.

IT'S A BIG PROBLEM FOR THEM.

>> ONE OTHER NOTE IS YOU CAN GET RID OF THE ACA BY NOT REAUTHORIZING, BUT THEY HAVE THESE BIG TAX INCENTIVES AND SUBSIDIES.

THEY'RE YELLING AT THE DEMOCRATS AND I'M PRETTY SURE THAT WOULD APPLY TO THESE, AS WELL.

THEY CAN GET RID OF THE ACA BUT PROBABLY NOT THE TAX SUBSIDIES AND INCENTIVES.

>> Ted: HAVE TO TOP YOU.

PANEL, GOOD TO HAVE YOU AND THANK YOU FOR JOINING US.

I'M TED SIMONS.

THANK YOU FOR JOINING US AND YOU HAVE A GREAT WEEKEND!