>> WELCOME TO "THE BIG PICTURE."

I'M CHARLES BIERBAUER.

OVER THE PAST MONTH, SOUTH CAROLINA HAS ATTRACTED ITS SHARE OF POLITICAL ATTENTION, THE RESIGNATION OF JIM DeMINT AND THEN THE SELECTION OF HIS REPLACEMENT, NEWLY SWORN IN SENATOR TIM SCOTT.

BUT SOUTH CAROLINA SENIOR SENATOR LINDSEY GRAHAM IS NO LESS AN IMPORTANT FIGURE IN THE NATION'S CAPITAL.

>> I BELIEVE WE NEED TO RAISE THE DEBT CEILING.

IF WE DON'T RAISE IT WITHOUT A PLAN TO GET OUT OF DEBT, ALL OF US SHOULD BE FIRED.

WHEN YOU'RE IN A HOLE, STOP DIGGING.

>> IF YOU TURN ON POLITICAL PROGRAMMING THESE DAYS, A GOOD CHANCE YOU'LL SEE SENATOR LINDSEY GRAHAM WHETHER TALKING ABOUT IMMIGRATION OR OPPOSING ONE OF PRESIDENT OBAMA'S NOMINATIONS OR THE FISCAL CLIFF.

>> I WANT TO LET PEOPLE IN SOUTH CAROLINA UNDERSTAND WHERE I'M COMING FROM.

I KNOW THAT WE MUST RAISE THE DEBT CEILING IN A RESPONSIBLE WAY.

THE ABILITY TO BORROW MONEY BY THE FEDERAL GOVERNMENT IS ESSENTIAL IN TERMS OF KEEPING SERVICES FLOWING TO THE PEOPLE.

THE WILLINGNESS OF THE FEDERAL GOVERNMENT TO BORROW MONEY WITHOUT A PLAN TO GET OUT OF DEBT IS DAMNING US AS A NATION TO BECOMING GREECE.

TO ME, THE PERFECT PLAN IS TO RAISE THE DEBT CEILING IN A RESPONSIBLE FASHION.

THAT WOULD INCLUDE A PLAN IN PLACE TO EVENTUALLY GET THIS NATION OUT OF DEBT.

THERE IS A WAY IN A BIPARTISAN FASHION TO RAISE THE DEBT CEILING AND GET THIS NATION OUT OF DEBT AND IT BEGINS WITH A BUDGET.

IT'S BEEN OVER THREE YEARS SINCE THE SENATE HAS PASSED A BUDGET.

WHY IN THE WORLD WOULD YOU ALLOW ANY ORGANIZATION TO BORROW MONEY IF THEY DON'T HAVE A BUDGET?

CAN YOU IMAGINE ANY BUSINESS IN SOUTH CAROLINA DEEPLY IN DEBT GOING TO THEIR BANKER AND SAY I NEED TO BORROW MORE MONEY, AND WHEN THE BANKER SAYS LET ME LOOK AT YOUR BUDGET AND THE ANSWER IS I DON'T HAVE ONE?

WELL, I CAN TELL YOU THE DAYS OF NOT HAVING A BUDGET HAVE TO BE OVER FOR THE GOOD OF THE COUNTRY.

>> SENATOR GRAHAM IS UP FOR REELECTION IN 2014 WITH SOME PUNDITS LOOKING AT THE POSSIBILITY HE'LL HAVE A PRIMARY CHALLENGE.

BUT HE'S ALSO GOT A SUBSTANTIAL WAR CHEST IN THE BANK.

SENATOR GRAHAM WAS IN COLUMBIA SERVING AS THE KEYNOTE SPEAKER AT THE RILEY INSTITUTE'S WILKINS AWARDS THIS WEEK.

HE SAT DOWN TO TALK WITH US.

SENATOR GRAHAM, A NEW CONGRESS AND YOU'RE A BIT OF AN OLD HAND.

>> THE FIRST DAY OF SCHOOL, THE FIRST FOOTBALL GAME, THE NEW CONGRESS, A CHANCE TO SHED SOME OF THE BAGGAGE AND BE OPTIMISTIC AT LEAST FOR A MINUTE.

I'LL BE OPTIMISTIC AT LEAST FOR A MINUTE.

>> SO THE MINUTE HAS NEARLY EXPIRED.

WHAT ARE YOUR PRIORITIES FOR THIS?

>> WELL, THE FIRST THING WE HAVE TO DEAL WITH IS RAISING THE DEBT CEILING, FUNDING THE GOVERNMENT AND SETTING ASIDE DEFENSE CUTS THAT I THINK WILL DESTROY THE DEFENSE DEPARTMENT ALL BY MARCH.

IMMIGRATION REFORM, I'D LIKE TO GET THAT ISSUE SOLVED FOR THE NATION AS A WHOLE.

THE YEAR OF RECKONING I WOULD SAY 2013 IS THE YEAR OF RECKONING.

WE HAVE RUN OUT OF THE ABILITY TO DELAY DEALING WITH THE DEBT.

THE FISCAL CLIFF WAS A SIGN OF WHAT COULD BE.

THE GHOST OF CHRISTMAS PAST.

I HOPE THAT THE YEAR OF RECKONING WILL RESULT IN BIPARTISAN SOLUTIONS AND IT'S TIME TO CONFRONT A RUN BEFORE IT'S TOO LATE.

>> I TAKE IT YOU'RE DESCRIBING IT OF LESS OF A CLIFF BUT MORE OF A CASCADE WHERE YOU TUMBLE FROM ONE LEDGE TO THE NEXT LEDGE.

AND YOU HAVE LANDED ON THE FIRST ONE AFTER DEALING WITH SOME OF THE TAX ISSUES.

IS THE REVENUE SIDE FROM YOUR PERSPECTIVE -- IS THAT PRETTY MUCH RESOLVED?

OR DO THERE NEED TO BE MORE REVENUES?

AND THEN I'LL ASK YOU ABOUT THE DEBT.

>> WELL, THE REASON I VOTED FOR THE PACKAGE WAS IT PREVENTED WHAT I THOUGHT WOULD BE A FISCAL CALAMITY.

IF TAX RATES WENT UP ON EVERYBODY, IF DEFENSE SEQUESTRATION KICKED N. ALL OF THAT HAPPENED AT THE SAME TIME, IT WOULD CRIPPLE OUR ECONOMY.

I VOTED FOR A PACKAGE THAT PROTECTED PEOPLE $450,000 AND BELOW MAKING THE BUSH TAX CUTS PERMANENT AT THAT LEVEL AND REFORM THE DEATH TAX.

IT WAS GOING FROM 35 TO 55.

AND WE PUT OFF DEFENSE CUTS FOR TWO MONTHS.

HAVING SAID THAT, WE DID NOTHING ON THE SPENDING SIDE.

IT GENERATED ABOUT $600 BILLION OF REVENUE TO DEAL WITH THE DEBT.

THAT'S A GOOD THING AS LONG AS IT GOES ON THE DEFICIT.

BUT IN TERMS OF THE BIG BILL, I'M LOOKING AT A A THREE-TO-ONE LIKE SIMPSON BOWLS.

I WOULD SAY TAKE IT ON THE SENATE FLOOR AND VOTE ON IT.

WHETHER OR NOT WE DO MORE REVENUE DNDZ ON THE SIZE AND SCOPE OF THE DEAL.

I KNOW THIS.

WE'RE NOT GOING TO DO ANY MORE REVENUE UNTIL WE DO SPENDING CUTS.

>> THREE-TO-ONE RATIO MEANING THREE DOLLARS IN CUTS TO 1 DD $1 IN REVENUE.

>> YEAH.

THERE ARE A LOT OF SPECIAL INTEREST EXEMPTIONS THAT SHOULD BE TAKEN AWAY FROM THE FEW AND PUT BACK IN THE TREASURY FOR THE BENEFIT OF THE MANY.

I'D LIKE TO HAVE A 25% CORPORATE TAX RATE AND BE WILLING TO ELIMINATE DEDUCTIONS FOR UPPER INCOME AMERICANS IF THE MONEY WENT TO PAY OFF THE DEBT AND LOWER TAX RATES TO HELP OUR ECONOMY.

I DON'T WANT TO SPEND ANY MORE MONEY ON THE GOVERNMENT.

I WANT TO START GETTING US OUT OF DEBT.

AND RAISING THE DEBT CEILING IS GOING TO BE ONE HECK OF A FIGHT.

WE SPENT $2.1 TRILLION FROM LAST AUGUST IN 17 MONTHS.

WE CAN'T SPEND $2 TRILLION EVERY 17 MONTHS WITHOUT ADDRESSING THE DEBT.

>> CAN I TAKE YOU BACK TO TALKING ABOUT TAXES?

WE HAVE HAD THE TAX CUT PERMANENT IS A TERRIBLE WORD BUT MADE MORE PERMANENT.

>> RIGHT, RIGHT.

BUT YOU ARE TALKING ABOUT OTHER ASPECTS OF THE TAX CODE THAT HAVE TO BE REVISED.

>> THERE ARE TWO WAYS TO LOOK AT THIS.

RAISING TAX CUTS GENERATED ABOUT $600 BILLION OF REVENUE.

SIMPSON BOWLES GENERATED ABOUT $1 TRILLION IN REVENUE.

EVERY YEAR WE GIVE OUT THROUGH THE TAX CODE $1.2 TRILLION IN SPECIAL INTEREST BILLS AND SOMETIMES THINGS THAT WE HAVE ALL ENJOY LIKE MORTGAGE INTEREST DEDUCTION.

SO WHAT I WOULD SUGGEST IS THAT WE LOOK AT THE TAX CODE TO MAKE IT MORE ENTREPRENEURIAL.

LOWER RATES, ELIMINATE DEDUCTIONS AND TAKE THAT NEW REVENUE TO PAY DOWN SOME DEBT AND BUY DOWN RATES.

FOR ME TO SUPPORT MORE REVENUE, YOU WOULD HAVE TO SHOW ME A PLAN THAT WOULD TURN AROUND A LONG SPENDING PROBLEMS OF THE COUNTRY.

AND THAT TAKES US TO MEDICARE, SOCIAL SECURITY AND MEDICAID.

>> WHICH OF THOSE TAX DEDUCTIONS ARE PALATABLE FOR YOU?

>> WHAT I WOULD LIKE TO DO IS BASICALLY OVER TIME ELIMINATE ALL OF THEM, BUT TWO.

CHARITABLE GIVING AND INTEREST ON OUR HOMES WITH A CAP.

THAT WOULD TAKE ABOUT ALMOST $1 TRILLION A YEAR BACK INTO THE TREASURY.

AND I WOULD LIKE TO TAKE THAT TRILLION DOLLARS AND TAKE SOME OF IT TO LOWER OVERALL TAX RATES TO CREATE JOBS HERE AT HOME.

ALSO TAKE SOME OF THAT MONEY TO PAY DOWN DEBT.

WHEN YOU LOOK OUT OVER THE NEXT 20 TO 30 YEARS, CHARLES, THE REAL BIG DEBT EXPLOSION COMES THROUGH BABY BOOMER RETIREMENT AND PUTTING PRESSURE ON SOCIAL SECURITY AND MEDICARE.

>> WHERE DO YOU GO ON THE CUTS SIDE?

>> OKAY.

HERE'S WHAT I WOULD SUGGEST.

THAT 35% OF OUR SPENDING IS DISCRETIONARY BUDGET.

WE CAN REFORM THE DISCRETIONARY BUDGET.

WE HAVE TAKEN $489 BILLION OUT OF THE DEPARTMENT OF DEFENSE.

YOU MIGHT COULD TAKE SOME MORE OUT OVER TIME.

WE HAVE HAD AN EXPLOSION OF SPENDING IN THE FOOD STAMP PROGRAM.

BUT YOU'VE GOT TO REMEMBER THAT ABOUT 70% ALMOST OFF OUR SPENDING IS ON AUTO PILOT, SPENDING ON THE DEBT AND ENTITLEMENTS.

IF I WAS THE PRESIDENT, HERE'S WHAT I WOULD CHALLENGE THE PRESIDENT TO DO.

LIKE TIPP O'NEIL AND RONALD REAGAN, RAISE ELIGIBILITY FROM 65 TO 67 OVER A 10-YEAR PERIOD.

THAT DOESN'T AFFECT ANYBODY FOR THE MOMENT AND SAVES A TON OF MONEY.

LET'S ASK PEOPLE IN MY INCOME LEVEL TO PAY MORE INTO THE MEDICARE SYSTEM BECAUSE ABOUT HALF OF IT IS SUBSIDIZED BY THE GENERAL TREASURY AND TO TAKE LESS OUT OF SOCIAL SECURITY.

IT'S CALLED MEANS SIFTING.

ASK YOUER INCOME AMERICANS TO PAY MORE INTO MEDICARE, TAKE LESS FROM SOCIAL SECURITY AND ALL OF US TOGETHER ADJUST THE INFLATIONARY COMPONENT OF THE BENEFIT'S CPI.

BOTTOM LINE, WE'RE OVERESTIMATING INFLATION WHICH MAKES THE BENEFITS MORE ROBUST OVER TIME.

>> THEY GET BIGGER.

WHEN RONALD REAGAN AND TIPP O'NEIL SAT DOWN, I REMEMBER THAT.

THEY WERE WILLING PARTNERS.

>> THAT'S THE KEY.

>> ARE THERE WILLING PARTNERS TODAY?

>> THERE ARE PLENTY OF TIPP O'NEIL'S, WE JUST NEED A RONALD REAGAN.

PRESIDENT OBAMA HAS PUT CPI ADJUST ON THE TABLE.

IF HE WOULD ADDRESS THE THINGS I SUGGESTED, CPI ADJUSTMENT DONE IN A BIPARTISAN FASHION SAVES HUNDREDS OF BILLIONS OF DOLLARS AND IS SOMETHING I THINK WE CAN AND SHOULD DO.

AND MEANS TESTING IS A LONG OVERDUE REFORM.

SO IF THE PRESIDENT WOULD REACH OUT TO BOEHNER AND MYSELF AND OH, I WOULD BE WILLING WITH THAT KIND OF PACKAGE TO LOOK BEYOND THE 10-YEAR WINDOW IN SAVINGS.

WHEN YOU LOCK YOURSELF INTO A 10-YEAR WINDOW, THE CHANGES REALLY DON'T YIELD THAT MUCH IN BENEFIT.

BUT IF YOU LOOK IN 20 AND 30 YEARS DOWN THE ROAD, YOU CAN SAVE LITERALLY TRILLIONS OF DOLLARS IN FUTURE EXPENSES.

>> NOW, JOHN BOEHNER IS SORT OF CASTING THE TIPP O'NEIL ROLE WHICH IS HARD TO PICTURE.

HOW DO YOU DEFINE YOUR ROLE?

YOU SAID IF OBAMA WOULD REACH OUT TO YOU.

I.

>> THINK A PRACTICAL RONALD REAGAN CONSERVATIVE, I HAVEN'T TALKED TO THE PRESIDENT IN OVER A YEAR.

I KNOW THIS.

WITHOUT ENTITLEMENT REFORM, WE'LL NEVER GET THE COUNTRY STRAIGHT.

IN 2037, THE DEBT WOULD BE TWICE THE SIZE OF THE ECONOMY.

$52,000 FOR EVERY CHILD BORN IN TERMS OF THE DEBT THEY OWE.

IN 2050, SOCIAL SECURITY AND MEDICARE WILL COST AS MUCH AS THE ENTIRE REVENUE STREAM COMING FROM TAXPAYERS.

SO NOW IS THE TIME.

YOU'VE STILL GOT ABOUT A DECADE LEFT TO TURN THIS THING AROUND.

I'D LOVE TO SEE THE PRESIDENT LEAD ON THIS.

I'D LIKE HIM TO HAVE AN HISTORIC SECOND TERM.

IMMIGRATION REFORM, ENTITLEMENT REFORM, GETTING THE NATION ON A DIFFERENT PATH THAN BECOMING GREECE.

CONFRONTING IRAN BEFORE THEY GET A NUCLEAR WEAPON.

AN ENERGY POLICY THAT PROTECTS THE ENVIRONMENT AND ALSO LAWS US TO BECOME ENERGY INDEPENDENT.

I REALLY HONEST TO GOD WOULD LIKE THE PRESIDENT TO DO BIG THINGS IN HIS SECOND TERM.

THE BIG THINGS HE DID IN HIS FIRST TERM WERE PRETTY MUCH ALL PARTISAN.

AND I THINK PRETTY PENS EXPENSIVE.

>> I WANT TO GET TO THE DEFENSE CUTS.

YOU MENTIONED IMMIGRATION.

WHAT DOES IMMIGRATION RETOMORROW DO FOR SOUTH CAROLINA?

>> IMMIGRATION REFORM IS A NECESSITY.

WE HAVE 10 OR 20 MILLION PEOPLE HERE ILLEGALLY.

IT'S NOT HEALTHY TO HAVE THAT MANY PEOPLE IN YOUR COUNTRY UNDOCUMENTED AND NOT PAYING TAXES IN NO-MAN'S-LAND, LIVING IN PRETTY BAD CONDITIONS AND SOMETIMES EXPLOITING THE SYSTEM.

>> THEY ARE NOT ALL NOT PAYING TAXES.

>> THEY ARE NOT IN A TRADITIONAL SENSE.

THEY ARE NOT -- THEY ARE BASICALLY UNDOCUMENTED PEOPLE WHO ARE IN THE SHADOWS OF OUR COUNTRY.

IT'S NOT GOOD FOR THEM.

IT'S NOT GOOD FOR US.

WE NEED TO CONTROL OUR BORDERS.

WE NEED WORKERS.

BELIEVE IT OR NOT, WITH ALMOST 10% UNEMPLOYMENT IN SOUTH CAROLINA, THERE ARE A LOT OF BUSINESSES THAT CAN'T FIND LOCAL WORKERS.

IF YOU LOOK IN SOUTH CAROLINA, YOU CAN'T FIND SOMEBODY TO HELP PROCESS MEAT OR DO CERTAIN MANUAL LABOR JOBS.

YOU SHOULD BE ABLE TO GET SOMEBODY OUTSIDE THE COUNTRY BUT PAY THEM A COMPETITIVE WAGE.

WHAT WOULD IT DO FOR THE COUNTRY?

WHEN I WAS BORN, THERE WERE 16 WORKERS FOR EVERY SOCIAL SECURITY RECIPIENT.

TODAY THERE'S THREE.

IN 20 YEARS, THERE WILL BE TWO.

WE'RE GOING TO HAVE A LABOR SHORTAGE.

A REFORMED IMMIGRATION SYSTEM BASED ON MERIT, YOU CAN ONLY COME INTO THE COUNTRY IF YOU ADD VALUE TO OUR ECONOMY, TO THE 12 MILLION.

YOU CAN STAY, BUT ONLY ON OUR TERMS.

YOU HAVE TO LEARN THE LANGUAGE.

YOU CAN'T BE A CITIZEN BY BREAKING IN THE LINE.

YOU HAVE TO GET BACK IN THE OF THE LINE AND PAY A FEE OR A PENALTY FOR THE LAW YOU VIOLATED.

IT WOULD CREATE ORDER OUT OF CHAOS AND CREATE ECONOMIC GROWTH.

TO GET THE LABOR FORCE WE NEED IN THE FUTURE, WE ARE GOING TO HAVE TO HAVE A VIBRANT IMMIGRATION SYSTEM.

>> YOU ARE RESISTANT TO DEFENSE, FURTHER DEFENSE CUTS.

>> YES, FOR THE MOMENT.

>> TOTALLY, ABSOLUTELY.

>> WELL, FOR THE MOMENT.

I THINK WE'RE AT WAR.

WHEN YOU LOOK AT DEFENSE SPENDING IN TERMS OF GDP, WE'RE ON THE LOW END.

WHEN YOU LOOK AT DEFENSE SPENDING RELATIVE TO GDP IN A TIME OF WAR, WE ARE HISTORICALLY LOW.

WE HAVE REDUCED DEFENSE SPENDING BY $489 BILLION.

THAT'S BEEN HARD BUT I THINK YOU HAVE TO GIVE ON THE DEFENSE SIDE.

>> IS MOST OF THAT THE REDUCED COST OF THE WARS?

>> NO.

THAT IS WITHIN THE PENTAGON ITSELF.

WE'RE NOT TALKING ABOUT SAVINGS FROM DEPLOYMENTS.

BUT SEQUESTRATION AND THE WORDS OF LEON PENNETTA IS CRAZY AND WILL DESTROY THE FINEST MILITARY IN THE HISTORY OF THE WORLD AT THE TIME WE NEED IT AND WE'LL BE SHOOTING OURSELVES IN THE HEAD.

WE WILL HAVE THE SMALLEST NAVY SINCE 1950.

SMALLEST ARMY SINCE 19 WHO AND SMALLEST AIR FORCE IN HISTORY.

I DON'T WANT TO GO DOWN THAT ROAD.

ONCE WE GET IRAN BEHIND US -- AND I HOPE WE WILL.

ONCE WE GET AFGHANISTAN WOUND DOWN AND THAT CONFLICT IS STABILIZED, THEN COME BACK TO ME TO TALK ABOUT FURTHER DEFENSE CUTS BECAUSE IF WE HAD TO GO INTO IRAN, THE F-35, THE F-22, THE B-2 ARE THE WEAPONS THAT GIVE US AN ADVANTAGE OVER AN ENEMY.

AND I'M NOT LOOKING FOR A FAIR FIGHT.

I'M LOOKING FOR A DECISIVE VICTORY BY THE UNITED STATES AGAINST ANY OPPONENT.

>> DO YOU WANT TO GO INTO IRAN?

>> NO.

>> IS IT AVOIDABLE?

>> I DON'T KNOW IF IT'S AVOIDABLE.

IF YOU ATTACKED IRAN TOMORROW AND IF THE PRESIDENT CAME TO ME AND SAID, LISTEN, WE HAVE TRIED SANCTIONS, THEY ARE NOT WORKING, I WOULD VOTE TO USE MILITARY FORCE KNOWING IT WOULD BE OPENING PANDORA'S BOX.

THEY WOULD HIT US BACK IN GULF.

WE HAVE ABOUT 60,000 TROOPS WITHIN THEIR ROCKET RANGE.

THEY WOULD COME AFTER ISRAEL AND PROBABLY HAVE SUICIDE BOMBERS.

IF THEY GET A NUCLEAR WEAPON, CHARLES, IF THE IRANIAN REGIME GETS A NUCLEAR WEAPON AND THE SUNI STATES WILL WANT A NUCLEAR WEAPON.

AND MY FEAR IS THEY WOULD SHARE THAT WITH A TERRORIST GROUP.

THAT'S THE WORLD WE LIVE IN.

VERY HARD CHOICES.

>> LET ME MENTION ONE MORE THING.

YOU MENTIONED LEON PANETTA, THE SECRETARY OF DEFENSE EAGER TO GET BACK TO CARMEL, CALIFORNIA.

THAT BRINGS UP THE PRESIDENT'S NOMINATION FOR THE NEW SECRETARY OF DEFENSE CHUCK HAGEL YOU SERVED WITH IN THE SENATE.

YOU'RE NOT THRILLED AND IN FACT YOU HAVE DESCRIBED IT AS AN IN YOUR FACE NOMINATION.

WHY IS THAT?

>> LET ME TELL YOU, HE'S A PASSIONATE MAN, CHUCK HAGEL.

I LIKE PASSIONATE PEOPLE.

DISAGREEING WITH ME IS NO POLITICAL SENSE.

I'M NOT LOOKING FOR SOMEONE THAT AGREES WITH ME.

I'M LOOKING FOR SOMEONE IN THE MAINSTREAM OF THINKING.

JOHN KERRY IS CLEARLY ON THE OTHER END OF THE SPECTRUM.

I WILL GLADLY VOTE FOR HIM AS SECRETARY OF STATE.

HERE'S MY PROBLEM -- >> WHAT ABOUT JOHN BRENNER FOR CIA?

>> MOST LIKELY BUT I WANT TO GET THE INFORMATION FROM THE CIA ABOUT THE BENGHAZI DEBACLE.

>> IN A NUTSHELL THEN, WHAT'S YOUR OPPOSITION TO CHUCK HAGEL?

>> I THINK THE POSITIONS HE'S TAKEN AGAINST IRAN ARE JUST REALLY OUT THERE.

HE IS ONE OF TWO SENATORS WHO VOTED AGAINST SANCTIONING IRAN.

HE HAS SUGGESTED THAT ISRAEL MUST DEAL DIRECTLY WITH IRAN, A TERRORIST ORGANIZATION AND TRIED TO KILL ISRAELI CHILDREN BY SENDING ROCKETS IN.

HE WAS ONE OF A DOZEN SENATORS WHO REFUSED TO SIGN A LETTER ASKING FOR HEZ BOLLAH.

I REALLY HAVE A PROBLEM WITH HIS POSITION, NOT HIM AS A PERSON.

HE'S A BRAVE MAN.

HE'S A GOOD MAN.

BUT HE'S TO THE LEFT OF THE PRESIDENT.

WHAT KIND OF SIGNAL ARE YOU SENDING TO IRAN AND TO ISRAEL IF YOU PICK SOMEONE WHO HAS BEEN THE MOST ANTAGONISTIC TOWARD ISRAEL OF ANY SENATOR THAT I KNOW?

AND QUITE FRANKLY, HAS HAD A VIEW TOWARD IRAN THAT I THINK IS NAIVE.

>> INTERESTING PERSPECTIVE, A REPUBLICAN TO THE LEFT.

>> WE LIVE IN REALLY WEIRD TIMES.

BUT I WOULD SAY THIS.

THAT THE PRESIDENT IS MUCH MORE IN LINE WITH MY THINKING THAN CHUCK HAGEL ABOUT IRAN AND ISRAEL.

>> SENATOR GRAHAM, THANK YOU.

THE SOUTH CAROLINA GENERAL ASSEMBLY WAS GAVELED INTO SESSION THIS WEEK.

STATEHOUSE REPORTER KATIE GEAR GIVES US A LOOK AT WHAT CAN BE EXPECTED FROM THE HOUSE AND SENATE THIS YEAR.

[POUNDING OF GAVEL] >> REPUBLICAN HOUSE SPEAKER BOBBY HARRELL CALLED THE HOUSE TO ORDER AND BEGAN THE FIRST REGULAR SESSION OF THE 120th SOUTH CAROLINA GENERAL ASSEMBLY ON TUESDAY.

BOTH PARTIES OF THE HOUSE AND SENATE HAVE A LONG LIST OF ISSUES THEY WOULD LIKE TO SEE ADDRESSED AND IN THEIR FAVOR THIS YEAR.

THE MAIN CONTENTION BETWEEN REPUBLICANS AND DEMOCRATS SEEMS TO BE OVER THE AFFORDABLE HEALTHCARE BILL THAT GOVERNOR HALEY HAS BEEN AGAINST.

NEWLY ELECTED DEMOCRAT HOUSE MINORITY LEADER TODD RUTHERFORD OF RICHLAND COUNTY SAYS PASSING THE HILLARY CLINTON HEALTHCARE BILL IS THE RIGHT THING TO DO.

>> THE ISSUE OF IMPORTANCE IS WHAT WE DO WITH THE HEALTHCARE LAW AND EXPANSION OF MEDICAID.

WE HAVE THE OPTION IN SOUTH CAROLINA OF COVERING OVER 300,000 PEOPLE WITH WHAT OBAMA HAS PASSED IN TERMS OF THE AFFORDABLE HEALTHCARE ACT.

THE FEDERAL GOVERNMENT WILL PICK UP 90% OF THE TAB.

IT'S A NO-BRAINER IN TERMS OF ECONOMIC DECISIONS AND NO-BRAINER IN HEALTHCARE DECISIONS.

WE LOOKED AT A RALLY OF PEOPLE THAT CASE TO THE STATEHOUSE OPPOSED TO OBAMA OBAMACARE.

I'LL BET THEY RECEIVE GOVERNMENT HEALTHCARE BUT THEY DON'T WANT IT AFFORDABLE TO OTHER PEOPLE.

WE CAN DO BETTER.

WE CAN MAKE SURE THE NUMBER OF SOUTH CAROLINIANS IN THIS CASE, OVER 600,000 GET THE HEALTHCARE THEY NEED AND MAKE SURE THERE ARE HOSPITALS.

THE HOSPITALS STAND TO LOSE A BUNCH OF MONEY AND BILLIONS OF DOLLARS IF WE DON'T DO THIS.

THIS IS A NO-BRAINER AND ONE OF THE FIRST THINGS ON THE AGENDA.

>> HOUSE REPUBLICAN MAJORITY LEADER BRUCE BANNISTER INSISTS THE NEW HEALTHCARE LAWS ARE UNCONSTITUTIONAL AND GO AGAINST WHAT THE STATE REALLY NEEDS.

>> THE FEDERAL GOVERNMENT'S OVERREACHING IN THEIR POWER AND THEIR ATTEMPT TO TELL US WHAT WE SHOULD AND SHOULDN'T DO.

IT'S SOMETHING THE HOUSE REPUBLICANS ARE OFFENDED BY.

WE WANT TO SAY SOUTH CAROLINA CAN MAKE OUR OWN DECISIONS.

WE CAN HANDLE THINGS BEST HERE ON OUR OWN.

SO THAT CONFLICT WILL TAKE UP A LOT OF THE DEBATE TIME.

IF YOU FRAME THE DEBATE HOW DO WE MAKE SOUTH CAROLINA MORE HEALTHY, THEN YOU WOULD RECOGNIZE THAT HEALTH INSURANCE AND HEALTHY CITIZENS DON'T NECESSARILY MATCH UP.

WE'VE GOT SOME AREAS OF THE STATE THAT ARE VERY AT RISK AND THEY HAVE SOME REELING CHRONIC ILLNESS ISSUES THAT WON'T BE DEALT WITH BY SAYING YOU HAVE COVERAGE.

I THINK THE DEMOCRATS WANT TO CHANGE THE DEBATE AND SAY THIS AFFORDABLE HEALTHCARE ACT IS THE ONE SIZE FITS ALL SOLUTION TO OUR HEALTH PROBLEMS, WHICH IT'S NOT.

I THINK SOUTH CAROLINA HAS UNIQUE CHALLENGES IN THE HILLARY HEALTHCARE SYSTEM.

THE HOUSE REPUBLICAN CAUCUS IS COMMITTED TO HAVING SOUTH CAROLINA CONTROL ITS OWN DESTINY.

IF WE'RE GOING TO BE ON THE HOOK FOR BILLIONS OF DOLLARS OF PREMIUMS AND MEDICAID MATCHED FUNDS IN THE FUTURE, WE WANT TO MAKE SURE THE SYSTEM WE'RE GETTING IS BEST FOR SOUTH CAROLINA.

>> BANNISTER AGREED SOMETHING NEEDS TO BE DONE ABOUT SOUTH CAROLINA'S HEALTHCARE SYSTEM BUT HOPES THERE'S ANOTHER WAY BESIDES AGREEING TO OBAMA'S HEALTHCARE PLAN AND MEDICAID EXPANSION.

A PETITION FOR THE NULLIFICATION OF THE AFFORDABLE CARE ACT HAS BEEN FILED EVEN THOUGH PRESIDENT OBAMA'S HEALTHCARE LAW HAS BEEN UPHELD BY THE SUPREME COURT.

AT A PREVIOUS MEETING OF BOTH DEMOCRATS AND REPUBLICANS, SPELLED OUT THEIR AGENDAS FOR THE 2013 LEGISLATIVE SESSION.

FOR REPUBLICANS, THEIR GOALS INCLUDE SPEAKING ELECTION REFORMS FOLLOWING THE FILING CONTROVERSIES OF THIS PAST ELECTION, SECURING THE STATE'S DATA, REFORMING ETHICS LAWS, OPPOSE OBAMACARE, SEEK TAX REFORM, GROPE THE ECONOMY AND FIGURE OUT HOW TO WORK GOVERNMENT RECONSTRUCTION.

THE DEMOCRATS' GOALS INCLUDE CHALLENGING THE REPUBLICANS ON ETHICS REFORM, APPROVE EARLY VOTING IN SOUTH CAROLINA, LOOK AT THE DEPARTMENT OF REVENUE AND HOW MUCH THEY ARE SPENDING ON CYBER SECURITY, EXPAND FUNDING FOR EDUCATION, PUSH FOR MEDICAID EXPANSION ALONG WITH OBAMACARE AND SUPPORT THE LAWSUIT OVER THE STATE EMPLOYEE HEALTH INSURANCE.

WHILE THEY MAY FOCUS ON MANY OF THE SAME THINGS, THE TWO PARTIES DIFFER ON SUCH ISSUES AS ETHICS, MEDICAID AND EARLY VOTING.

BUT EDUCATION IS A BIG ISSUE FOR BOTH SIDES OF THE AISLE.

THE DEMOCRATS ARE PUSHING FOR MORE FUNDING FOR K-4 THROUGH 12.

>> WE'RE GOING TO TRY AND MAKE SURE THAT EDUCATION GETS FUNDED AT THE LEVELS NECESSARY.

WE ALWAYS TALK ABOUT THAT FUNDING HAS GONE UP AND IT HAS GONE UP.

BUT EVERYTHING HAS GONE UP.

EVERYTHING COSTS MORE, SO THE FUNDING FOR EDUCATION AND OUR KIDS MUST GO UP TO MEET THOSE NEEDS AS WELL.

TECHNICAL EDUCATION AS IMPORTANT AS IT IS, TO MAKE SURE PEOPLE ARE TRAINED TO HANDLE HIGH TECH AND HIGH SKILLED JOBS WHEN THEY COME TO SOUTH CAROLINA, BUT MAKING SURE THAT K-12 GETS THE FUNDING THEY NEED THAT WE HAVE PRE-K PROGRAMS AND WE GET THE MONEY TO DO WHAT IT TAKES TO EDUCATE THE CHILDREN OF SOUTH CAROLINA.

>> AND REPUBLICANS WANT TO REEVALUATE THE EDUCATION SYSTEM'S BUDGET.

>> THE EDUCATION FUNDING HASN'T BEEN CHANGED IN DECADES.

AND THAT'S SOMETHING THAT NEEDS TO BE LOOKED AT.

YOU SET UP A FORMULA AND IT MAKES SENSE AT THE TIME.

AND THAT WAS 1970 SOMETHING.

AND WE NEED TO MOVE FORWARD AND LOOK AT HOW THINGS ARE NOW, LOOK AT THE COUNTIES, HOW THEY ARE MADE UP.

REALLY STUDY THE FUNDING FORMULAS AND FIGURE OUT WHAT'S THE BEST WAY TO GET STATE DOLLARS IN THE PUBLIC SCHOOLS SO THEY CAN DO THE BEST JOB THEY CAN DO, BE AS EFFICIENT AS THEY CAN BE, AND STILL HAVE A WORLD-CLASS EDUCATION SYSTEM.

>> THIS YEAR'S LEGISLATION PROMISES TO BE A WELL-HEATED DEBATE OVER MANY ISSUES.

AS THE FIRST DAY OF THE 120th SESSION CAME TO A CLOSE, LAWMAKERS LOOK FORWARD TO THE COMING MONTHS.

LIEUTENANT GOVERNOR GLENN McLEODMcCONNELL HOSTED HARVEY PEELER AND NIKKI SETZLER ON HIS WEEKLY PROGRAM THIS WEEK IN THE STATEHOUSE AND BOTH PARTIES IN THE SENATE CLOSELY MIRROR THOSE IN THE HOUSE.

>> GENTLEMEN, I'LL JUST START WITH YOU, SENATOR SETZLER.

SESSION OPENS.

CONTENTIOUS SESSION.

YOU THINK IT WILL BE A HARDWORKING SESSION, GRIDLOCK OR WHAT?

WHAT DO YOU SEE?

>> WELL, FIRST OF ALL, I HOPE IT IS NOT GRIDLOCKED BECAUSE I THINK PEOPLE ARE TIRED OF THE GRIDLOCK THAT'S IN WASHINGTON.

AND THEY ARE LOOKING FOR US, SENATOR PEELER AND I HAVE THIS HISTORY OF A BIPARTISAN COOPERATION TRYING TO MOVE THIS STATE FORWARD.

AND I THINK THAT'S THE WAY WE GO INTO THE SESSION.

I THINK IT'LL BE A HARD-WORKING SESSION.

I THINK WE'VE GOT A LOT OF MAJOR ISSUES FROM CYBER SECURITY TO EARLY VOTING, TO CAMPAIGN REFORM.

SO I THINK THERE'S A HUGE AND NUMEROUS ISSUES THAT WE WILL BE ADDRESSING THIS YEAR.

>> THINGS MY CAUCUS HAVE IS TRANSPORTATION FUNDING, SPENDING CAPS, THE CYBER SECURITY, THE HACKING SITUATION OF OUR ECONOMIC DEVELOPMENT PART AND GOVERNMENT REFORM AND DEPARTMENT OF ADMINISTRATION AND THE ETHICS LEGISLATION.

AND THEN THE BALLOT FIX.

I CALL IT THE FILING FIASCO OF LAST YEAR.

OUR PLATE IS FULL.

WE STARTED EARLY.

I BELIEVE THE JUDICIAL COMMITTEE HAS ALREADY VOTED OUT A COUPLE OF BILLS, THE BALLOT BILL, THE BALLOT FIX.

AND HOPEFULLY, WE'LL GET ON THAT EARLY.

AND THEN ANOTHER ISSUE THAT WE'LL BE DEALING WITH IS SWEEPSTAKES AND THAT CAKE CAME OUT.

>> YEAH.

>> CLOSING THAT LOOPHOLE.

ALONG WITH THAT AND I KNOW IT'S SOMETHING YOU HAVE TALKED ABOUT FOR YEARS, SENATOR, IS THE RAFFLE.

UP OUR WAY THE LIONS CLUB HAS HAD AN ANNUAL RAFFLE.

THAT'S THEIR MAJOR FUNDING.

THE GREAT GAMBLING DEBATE I THINK IS ON THE HORIZON.

>> I THINK WE HAVE TO MAKE EDUCATION A PRIORITY IN THIS STATE.

AND WHETHER PEOPLE AGREE OR DISAGREE, FUNDING IS IT A PART OF THAT.

AND THIS CONCEPT THAT WE ARE GOING TO KEEP FUNDING IT WHERE IT WAS FOUR YEARS AGO OR THREE YEARS AGO, SOONER OR LATER HAS GOT TO CHANGE FOR US TO MOVE FORWARD.

AND SECONDLY, YOU HAVE MENTIONED THE ARTICLE IN THE PAPER WHICH I HAVE NOT SEEN ABOUT TEACHER PAY RAISES.

CLEARLY TEACHERS NEED A PAY RAISE.

WE HAVE ISSUES IN SOME OF THE EDUCATION AREAS OF THIS IT STATE.

BUT WE HAVE A LOT OF PEOPLE THAT DO A VERY GOOD JOB, THAT ARE INNOVATIVE, ON CUTTING EDGE AND DOING GREAT THINGS IN THE SCHOOLS OF THIS STATE.

AND WE NEED TO BE POSITIVE ABOUT THAT AND NOT ALWAYS BE ATTACKING THE EDUCATION COMMUNITY AND THOSE PEOPLE WHO ARE OUT THERE TEACHING OUR CHILDREN ON A DAILY BASIS.

WE'VE GOT A NEW PROGRAM IN THIS STATE CALLED TEACH AMERICA WHICH HAS BEEN VERY, VERY SUCCESSFUL.

AND I THINK THERE IS SOME RECOMMENDATIONS TO INCREASE THE FUNDING POUR TEACH AMERICA.

WE'VE GOT CHARTER SCHOOLS THAT WE'VE GOT.

WE'VE GOT VIRTUAL EDUCATION NOW WHICH IS A THING OF THE FUTURE.

AND THAT'S HOW EDUCATION IS GOING TO GO.

TIED TO FUNDING, THOUGH, IS YOU CAN'T KEEP DOING IT THE SAME OLD WAY.

YOU'VE GOT TO MODERNIZE.

YOU'VE GOT TO GET INTO THE 21st CENTURY WITH THE DELIVERY SYSTEM.

SAME THING WITH HIGHER EDUCATION.

>> FOR MORE INFORMATION AND FOR IN-DEPTH COVERAGE OF THIS YEAR'S LEGISLATIVE SESSION, VISIT OUR WEB SITE AT SCETV.ORG.

FOR ALL OF US AT ETV, I'M CHARLES BIERBAUER.