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tv   Governors Terry Mc Auliffe and Brian Sandoval Deliver State of the States...  CSPAN  January 25, 2017 9:36pm-10:38pm EST

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announcer: go to book for the weekend schedule. >> virginia governor terry governor and nevada brian sandoval are chair and cochair of the national governors association. they gave their state of the state speech today and answered questions about how the nation's governors hope to work with the trump administration. this is an hour. >> we are going to go ahead and get started. i really want to thank you folks
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are coming. this is terrific. welcome to the 2017 state of the states. i am scott patterson, director of the national governors association. i have a couple of things to mention, and then i will introduce our very distinguished panel, which we are thrilled to hear from. the first thing is i want to introduce our new nga logo. we are excited about it here on the podium. the other thing, i think it is really critical to know that right after the election -- as everyone knows, we have been in a fairly multiyear period of significant partisanship. so the national governors association went out and polled 1000 american voters. we used frank muntz of muntz global partners. he is here for anyone who would like to talk to him after this event. we found some significantly interesting things in this poll. the first was -- in an era of distrust of many politicians,
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americans trust their governor more than any other elected official. on most issues, americans trust states and governors to get a solution more than other levels. voters were more optimistic about their state's future than the country. nearly three out of four voters said that their state is doing a better job at delivering results than the federal government. these are pretty significant, interesting findings, and certainly more dramatic than we expected. that is why we are thinking about 2017 as the year of the governor. now, let me now introduce our distinguished panel to give us the state of the states today. it is my honor to introduce the chair and vice chair of the national governors association.
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governor terry mcauliffe of virginia is our chair. he has made cyber security his signature initiative as chair of nga, to ensure states are protected from the many threats that can occur and cause various damage. the governor has brought $14.5 billion in capital investment to virginia, more than any other governor in the state. he has brought bipartisan support for education initiatives. and a first in the nation performance-based workforce development system. it is also my honor to introduce our vice chair, governor brian sandoval of nevada. having taken office when his state was in one of the worst economic conditions ever, he has now made nevada and economic powerhouse with significant investments from major companies like tesla and amazon, to name a few.
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under his leadership, the state has placed significant investments in education, and measures like high school graduation rates have gone way up. finally, i want to introduce the panel -- the moderator of the panel. we are really pleased and excited to have carrie brown, the editor of politico, as our moderator. she has a really impressive background in journalism and has done a stint in europe and was also a white house correspondent. it is with great pleasure for me to welcome to the podium our chair of nga, governor terry mcauliffe of virginia. [applause] gov. mcauliffe: thank you, and thank you, scott for that kind introduction. good morning, ladies and gentlemen. i'd like to welcome you to the fifth annual state of the states address. it is my great honor to serve as the 72nd governor of the great commonwealth of virginia, and as chairman of the national governors association.
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as has been mentioned, joining me today is governor brian sandoval of the great state of nevada, who serves as our vice chair. he and i are also very good personal friends, and i will say as it relates to all the governors, we all get along very well. i want to thank you for your leadership of the national governors association. as you know, the national governors association is the voice of america's governors and their states on matters of national policy. today, we are here to discuss the agenda that will work to advance -- that we have going on in washington today and how it will affect our states and the federal government for years to come. even more important at this very unique time in our history, we are here to articulate the role that governors expect to play in the national discussion in the years to come. and congressdent face big challenges on issues
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ranging from the economy to health care to infrastructure and criminal justice. as they began their work, we have a simple message for president trump and the leaders of the congress. governors, we are here, we are ready to work with you on an agenda that makes lives better for people with whom we serve. every day, as you know, governors are on the front lines, turning policy into action. we balance budgets, build and rails, attract new businesses to our respective states. while partisanship grinds washington to a halt, we are democrats, republicans, and independents who every day work across party lines to get things done. in my own state of virginia, we have consistently put partisanship aside over the past three years to move our commonwealth forward on issues like education, workforce development, and veterans services. i am particularly proud of the work we have done on
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transportation, advancing plans to unlock high-traffic corridors like i-66 and i-95, in passing the first of its kind reform to ensure that every taxpayer is spent easing dollar congestion and growing our economy. if you talk to governor sandoval or any of the colleagues around the country, you will hear very similar stories of leaders working together to get things done. those examples stand in stark contrast to the ugly partisan gridlock that has paralyzed washington year after year. and so as president trump and leaders in congress begin their work, we do hope they will follow the example set by the governors by refusing to let partisan battles interfere with the important work that voters hired them to do here in washington. and as equally important for our federal elected officials, to
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fully consider the impact of the the citizens that they make have on the states and the people with whom we serve. congress and president trump have many opportunities to make decisions that will significantly aid our efforts to improve the quality of life for the people in our states. sequestration is a great example where we can start this conversation. in virginia between 2011 and 2013, it cost virginia $9.8 billion directly and 154,000 jobs. we need to work together to put an end to sequestration and to prevent further cuts from harming our local economies. i will say governor sandoval and i had a very good meeting this morning with speaker ryan on this topic, and i am encouraged. the president has indicated he would like to invest as much as $1 trillion in our nation's infrastructure. every single governor in this
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nation has roads, bridges, tunnels, and airports, and we want to work together because we need to replace them and we need to repair them. along the way, this will create tremendous job opportunities and economic opportunities for everyone. we can work together to defend our critical infrastructure and data against cyber attacks the -- that cost the united states of america $300 million a year. in virginia alone last year, we saw 70 million attacks. that is a cyber attack every four seconds. the marketplace fairness act is another opportunity for federal decision-makers to balance their budgets and invest in key economic infrastructure, all the while leveling the playing field for brick-and-mortar retailers. we have seen what has happened to sears and macy's, as they are closing stores because it is very hard for them to compete with online retailers. speaking on behalf of the
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bipartisan governors representing the six chesapeake bay states, let me be very clear. we are unified in protecting this critical asset that helps our economies and all those individuals who live near our bay for their own individual livelihoods. as chairman of the chesapeake bay council, i am advocating on behalf of the six governors and the mayor of the district of colombia that we continue to have commonsense policies to make sure we are continuing to protect, save, and restore our great chesapeake bay. these and the rest of these incentives and initiatives that governor sandoval will talk about and cover in a moment are real opportunities to bring the pragmatic, bipartisan leadership that we practice in our states every day to washington and to get results for all of our citizens. that is certainly the approach that we hope decision makers will bring to their deliberations on the future of health care for our country.
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there has been no shortage of heated political rhetoric on this issue, but i do feel confident speaking of my colleagues when i say that repealing the affordable care act without offering an adequate replacement will have far-reaching consequences for our states and the people who live there. that is particularly true for those states that have expanded medicaid. in virginia, unfortunately, we have not expanded medicaid. but a repeal of the aca accompanied with a proposed block grant, a health-care entitlement could cost the state of virginia in the next budget over $300 million. and of course, that does not include the enormous impact that would befall the nearly 400,000 virginians who stand to lose access to life-saving care if proper steps are not taken.
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governors are dealing with these issues each and every day. no matter which direction our congress heads, we will be the ones administering many of the policies that result from that discussion and dealing with whatever fallout that may occur. so we are here in the spirit of friendship and common purpose to make sure that policymakers hear our voices before they make decisions that could affect us and affect so many individuals in our state. their decisions will have profound impacts on our states and the families that live there. before i turn it over to governor sandoval, i want to say congratulations and welcome on behalf of the nation's governors to president trump and our new congress. the challenges that we face together are great, but so is our capacity in america to meet them. the men and women of the national governors association are ready to work with you on areas of common ground and model solutions to problems we have
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yet to solve. and yes, we will stand up respectfully if washington pursues the wrong course. in the end, i'm confident that we will all work together to leave our states and our nation better than we found them. now it is an honor and my pleasure to introduce my friend and colleague, governor brian sandoval of the great state of nevada. [applause] gov. sandoval: morning, everyone. it is a great privilege to be here. governor mcauliffe, i appreciate your remarks and particularly appreciate your leadership. i am looking forward to this year with you in terms of leading the national governors association into a new time. it is my privilege to delve deeper into some of the issues governor mcauliffe mentioned, outlining our collective priorities as governors for the new president and congress. nga has been building a transition blueprint for
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president trump and congress, one that details issue by issue those most important to governors and states. we ask the federal government to partner with us to address those issues. president trump has outlined three priorities for his first 100 days in office -- infrastructure, health care, and tax reform. to echo governor mcauliffe, governors stand ready to engage with the new administration to produce a positive outcome on these and other issues for all americans and our respective residence of our states. it is a new era in washington. governors make the following recommendations for those three priorities. first, infrastructure -- i know the governor talked a little bit about that, but i will talk a little more. governors know world-class infrastructure is necessary for a strong economy. every day, we champion ways to fix, fund, and finance
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infrastructure needs in our state. we also know states cannot fully realize this work alone. that is why we urge the new administration to support our commitment to bring existing infrastructure into a state of good repair by committing to provide long-term and strictly stable funding for america's infrastructure needs. specifically, there is ongoing uncertainty over the funding instability of the highway trust fund. that instability causes states to think twice before pursuing large-scale multiyear products needed to modernize our nation's infrastructure. i will move on. as we all know, infrastructure is not just about roads. it is about water and energy. america's drinking water and wastewater must the protected and treated properly. governors will work with our federal partners on successful implementation of the water resources development act. we also want to work with congress and the relevant agencies to strengthen our
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nation's energy infrastructure, including expanding and improving the electric power grid, and bringing broadband networks to underserved and often remote areas. second, health-care reform, which again the governor has talked about. health care often tops the list of issues that american public cares most about. as the managers of medicaid for the people of our states, governors have a crucial role to play in the future of american health care. no one -- no one -- is better equipped to understand and respond to the unique and complex needs of our citizens and governors. that is why we are particularly enthusiastic about any proposed federal reforms that provide states with greater flexibility to develop innovative solutions that meet our residents' needs. we also know that higher-quality care should not and does not have to come at a higher cost.
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therefore, governors must play an important role in discussing -- discussions surrounding federal health care policy to navigate the complex relationship between state and federal programs. how legislative changes to that relationship could affect the people of our states. we ask the administration and all members of congress to let us be your trusted partner. this is going to be very key in terms of collaboration and resource. we are the governors, the ones closest to the people of our states as you develop the policies that will guide american's health care. last, tax reform. federal tax reform, though complex and multipronged, has a substantial impact on states. to truly succeed, tax reform needs to be an intergovernmental effort. it is important to preserve public financing mechanisms, specifically tax-exempt financing, which play a central role for state and local governments to raise capital for a variety of public projects,
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including infrastructure. those projects help pave the way to grow jobs, strengthen the economy, and maintain the united ' position as a global competitor. the new administration must also maintain the current status for state and local income tax. to do otherwise would preempt the state authority over budget and tax systems. the governor talked about online sales, and while i am on the subject of tax reform, let me also bring up this opportunity to bring up this commonsense tax issue with broad, bipartisan support that has been on the congressional docket for decades. affirming the state's ability to collect sales tax from online purchases, the time has come to put this long-standing issue at rest and pass legislation that allows states to collect revenue already owed but currently uncollectible. three other things i wanted to
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chat about beyond the president's top three agenda items -- governors have additional priorities they ask congress and the administration to keep in mind as they implement change -- education, something that is very close to my heart. last year, congress passed a new education law that restored state authority over k-12 education. since then, states have looked to the classroom and local school boards to develop education systems that place students, not the federal government, at the center. it is critical that states continue to build on that progress and strengthen our nation's education system. governors again must be consulted as the new law is implemented. next, energy and the environment. governors ask to be consulted at the early stages of energy and environmental policy development, for state interests and obligations intersect with the federal government.
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with ourooperatively federal partners, states can continue to be successful implementing environmental and energy policies that meet specific needs and goals, and the administration should look to the states to incorporate these methods into national policy. third, public safety and the national guard. one of the most important roles as governor is to ensure the public safety and security of the citizens and their property. in order to accomplish this central duty, states need flexibility and federal funding for state public safety efforts. the men and women of the armed forces -- god bless them all -- active duty, reserve, and national guard make sacrifices every day to protect our country and preserve our way of life. the national guard is the only military force a governor can call upon to respond to disasters and other emergencies. the guard remains a cost-effective solution for sustaining military capabilities
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at home and abroad. therefore, it is important governors maintain maximum flexibility, and you have heard me use that word many times in nationalch -- to use guard forces to conduct a full range of domestic support missions. governor mcauliffe mentioned cyber security, and i truly appreciate him bringing this critical issue forward for all of us. the foundation of today's economy, national security, and the daily operations of government are increasingly dependent upon the security and reliability of communications technology and other digital infrastructure. in my own state, the great state of nevada -- in my state of the state address i gave last week, i announced the creation of nevada's first cyber defense center. imitation is the greatest form of flattery, and we really borrowed upon governor mcauliffe's great work in the state of virginia.
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like nevada, all states are moving quickly to stay ahead of the threats to our digital economy. in order to be successful in stopping threats, the federal government must view states as primary sources of intelligence, as well as priority recipients of intelligence from the federal government. states should be seen as full-fledged partners in gathering, analyzing, and disseminating intelligence in the fight against cyber terrorism. finally, job creation. and governor, i am really proud of what you have accomplished for the great state of virginia. it is incredibly impressive. certainly, job creation is the backbone of every governor's agenda. to remain a top competitor globally, the united states must continue to create and maintain a sustainable pipeline of talent. governors brought workforce development and work-based learning to the forefront of the federal agenda with proposals on
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apprenticeship and collaboration with congress to create the workforce opportunity act. now we ask the administration not to stall that important work by preserving governors' federal workforce reserve at 15% to ensure we can serve all citizens to read -- all citizens. we also ask congress to incentivize and reward employers and job seekers who take advantage of work-based learning and apprenticeship opportunities. in closing, a strong partnership between states and the federal government will foster the sense of unity our nation is longing for. i think the governor talked about that. our nation is craving leadership and collaboration and working together in order to propel us and the 50 states and our nation forward. this is our moment to come together to protect our union and promote the general welfare
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of these citizens of these united states. ladies and gentlemen, it truly is a privilege to serve as the vice chair of the national governors association. i appreciate your attendance today. i know that you come from many different places, with regard to the media and administration, and your respective interests. i know that i speak for the governor when i tell all of you that we truly do mean it when we talk about collaboration and flexibility and working together. i do believe that the national governors association will be the go-two entity, and all of us as the governors of this amazing country look forward to doing that. and making this continue to be the greatest nation on earth. thank you, ladies and gentlemen. [applause] ms. brown: i take it that is my cue to take over. thank you, governors, for the remarks. what we are going to do now is we have about 20 minutes to have
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a discussion, and then we are going to open it up to some reporters who are here as well. i was not going to start off on this note, but i think, governor sandoval, your remarks, i think a lot of people are wondering about the unity question and president trump. if you could get into a room with president trump -- and i would be curious to know if either of you have yet or when you would expect to -- has been a lot of discussion about the transition and the positions he staked out during the transition, and whether he is doing enough to unify the country. what recommendations would you give to him as governors who -- you state your reputations on working with both parties. how can president trump -- should he be doing more? gov. sandoval: first, i have not had the opportunity to visit with the president, and i look forward to that opportunity. we all know he chose a governor
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as his vice president and i think that is a good template. it is very early on. i have complete confidence that the president well reach out to the governors, and i think a good place to start is with the national governors association. we have a meeting next month and i'm confident we will have the opportunity to meet with him at that time. but one of the things i would like to convey to him as governors, we are the individuals who are closest to the people of our specific states. obviously, no two states are the same, and we have unique obligations and citizenry and what have you. i want to talk to him about economic development and health care and education. i am absolutely optimistic about the opportunity to work with him and his administration. i want him to succeed, because if he is successful, the nation will be successful. ms. brown: how about you, governor mcauliffe? gov. mcauliffe: i agree with brian. we want to president trump to be
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successful because it is critical for our nation. my main message is that you have got to work together with us at a state level. i am concerned when they talk about block grants or medicaid expenses. that could be catastrophic for the state of virginia. i would lose $300 million right off the bat. what is the block grant number going to be? we are a non-expansion state. i want to be in the room for the discussion so that we can offer quality care. i guess i would say to him, let's stay focused on the big, broad issues. economic development, what we are going to do with the infrastructure, the trillion dollars of infrastructure spending. i do not really care about the size of the inauguration. i really don't. i am a little concerned about this issue of 3 million to 5 million voters, illegal voters. it is just not true. it is made up. what i am concerned about is, let's not use this to try to deny people their opportunity to vote. let's not make it harder for people to vote. i have tried to lead in virginia
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on having better access to the ballot. you are the president, you walk into the oval office every single day. put all of that stuff behind you. let's focus on the big issues and let's not play small ball on issues about crowd sizes and all that. we have got big issues we need to deal with. ms. brown: i was quite to ask this question about the end about the 3 million to 5 million because it is the big topic today. have you seen any evidence that there were 3 million to 5 million illegal votes? do you agree with that claim? gov. sandoval: i can only speak to the state of nevada and i am not aware of anybody who voted illegally and our great state. offact, i am really proud the way our state handle its election. to me, it's over and let's move on and let's get to the job of governing this country. we talked about his three priorities. i'm looking forward to getting
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into the specifics of those and engaging with the administration. into the specifics of those. i don't feel like it is an adversarial relationship right now. i will be the first one to stand in line and say, we need to work together. we need to move on. that's the bottom line. ms. brown: the idea of doing an investigation through the doj is not something you think is worthy of the governments time at this point? gov. sandoval: i don't. ms. brown: something that may be worthy is the aca, the debates going on in congress right now. speaker ryan this morning, as you said. from your conversation with folks on the hill, do you have a sense of whether there are enough votes in the senate to do a repeal of obamacare at this point? gov. sandoval: i will be the first to tell you there are a lot of improvements that need to be made. repeal without an adequate replacement jointly together -- 400,000 virginians will risk losing health care.
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we met with leader pelosi yesterday. we met with speaker ryan today. nobody is quite sure. our big -- it was clear from speaker ryan today that they want a block grant. it seems very clear. he said the states could do a better job administering it. the issue for us at state level is, what is the threshold number? what you do about the non-expansion states? right now, we are an efficient state. we are a 50-50 match, the minimum in virginia. i worry that we get about $4.6 billion from the government and we match it, what will happen to us in virginia? our threshold -- if you are a single woman with two children, you will be able to apply if you make less than $30,000 a year. the what if the stock market goes down and we had into a recession. we at the state department will be responsible for the increased costs. if you've been in an efficient state, you will be disadvantaged. the speaker was open to this today. we understand that is the issue. what is that threshold number we
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are going to have to deal with? but no one clearly today has a clear picture of what replacement means. ms. brown: governor sandoval, the idea of block grants. gov. sandoval: army first respond because you asked about votes. i think it is premature to be counting votes. i'm not going to speculate about what is going to come. i've heard a lot of general language that has come up and nothing specific. as i mentioned in my remarks, i just gave my state of the state. i am an expansion state. i chose to expand medicaid and we have a state-run insurance exchange. it is working well for us. the governor talked about a lot of lives at stake, with regards to decisions made here. but i'm going to harken back to the fact that i hope decisions are not made in a vacuum and that there is a reach out to the governors, because i can talk specifically about what we are doing in our state and what is working well. everything can be improved. the rhetoric i heard is nobody
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is going to lose their coverage and prices are not going to increase. great, that is wonderful. but until we get into the specifics, i'm not going to have an adversarial relationship. once the specifics are given, we can have a conversation. i will complement the house leadership, they ask for letters from each of the governors to respond, which i did, and gave some recommendations, but also talked about some of the consequences depending on the decisions that are made. i think there is a great opportunity here. i took that letter as an effort at collaboration versus anything adversarial. ms. brown: governor mcauliffe says he does not favor of block grants. is there something you have concerns about? a block grant: without knowing what the number is going to be -- i think every governor is very concerned.
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if you think a block grant is going to help your state and get you more money, i just don't think that will be the result at the end of the day. we have to be very concerned. the devil is in the details. as i say, speaker ryan was open, we had a good conversation. i think everybody understands nobody wants to throw anybody off their health care plan. they don't. but this is expensive. it's complex and it will take time. our point is, we just want to be able to work with you to figure it out. we want to give our citizens great care, make it more efficient, and we would love to make it cheaper. gov. mcauliffe: similar answer -- it depends. i talked about in my remarks, i'm not going to contradict myself. i said we want more flexibility and we will have more flex bill flexibility with the blog ranting, but it depends on what the formulas are for that block granting. so if i get a fixed amount of money and my economy takes a dive in my state and suddenly more people become eligible for
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medicaid, i don't have the help the -- the delta to cover them. so i want to make sure there is something within their that takes into account for a fluctuation in the economy. ms. brown: to move onto infrastructure, i'm old enough to remember when shovel ready first became a remark for president obama and then a very loaded word for president obama. when he was developing a stimulus, he asked for shovel ready projects. they turned out to be not so shovel ready, as he infamously said in 2010. what lessons can we learn or have we learned from that stimulus that we can apply to this round, this effort, to inject money into infrastructure, two great jobs, as you say, whether eight years s, whether we have a more
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positive view of the stimulus, that can be let up to -- that can be left up to folks to interpret. but as governors, what happened then that didn't work that we can apply now as you are going through the process of developing list of projects that are out there, making sure that they can start moving quickly and not over many years, because the impact is obviously dulled when that happens. gov. mcauliffe: what happened last time, many governors at the time were in financial straits at the time. they had made the decision. a lot of governors used that money to balance the budget. a true trillion dollar infrastructure, we all need to repair our roads and bridges. we have a lot of opportunities to do it. in virginia, we lead the nation in public-private partnerships. inside 66ounced an
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project, which for 30 years we have been trying to get done. i just announced a great project outside the beltway on 66 rate when i came into office, this was going to cost taxpayers $1 billion. we renegotiated the deal. not a penny of taxpayer money will be used. it all came in from the private sector. three free lanes, two express lanes in the middle. that is what we talked about, what we want to do going forward. we do have projects ready. i just purchased 18 maus of new roads, 14 mile new rail track, a new bridge over the rappahannock, i purchased the s line from richmond to raleigh for high-speed rail. that was done $165 million from the fast lane grants from the federal government. but i used private sector money to turbocharge that into $1.4 billion. so as i said to speaker ryan, we are fine with these projects if the federal government is willing to put some money into the infrastructure. that allows us to get the private sector. i'm optimistic. we are ready to go.
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we have totaling capacity, which allows us to bring the private sector in. gov. sandoval: just a few comments. i will agree with governor mcauliffe in terms of budgets and the stimulus preceded my term as governor. but when i came in as governor, i had to find a way to fix the that was there when i came on, which was pretty devastating and hard to do. i don't think we should be doing projects for the sake of doing projects and repaving roads that don't need paving, things of that nature. nevada is a little different. we have no toll roads and don't want any. we are not going to have toll roads ever, at least as long as i am here for the next two years. so we have a different formula. actually, i am pretty proud of our roads and bridges. they are in pretty good shape. but in terms of specifically responding to your question, one of our big priorities in our
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state, which i think should be a national priority, is building interstate 11. are two of las vegas the main areas in the state that are not connected by interstate. we would like to see interstate 11 go from phoenix all the way to -- through nevada and continue north. we would like to be able to provide adequate water, so we have got great companies in nevada, tesla, and another in southern nevada. we would like to see those industrial parks continue to grow. part of that would be having the infrastructure of the rail and water to be able to do that. i think those are two projects that would have immediate benefits, that would improve the economy, not only for my state, but for the country. ms. brown: i want to open it up to reporters in just a minute,
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so if folks want to get their thinking hats on. i was hoping for you to respond to some of the executive orders that we are expecting to see today that deal with the wall. i know you are not a border state, but what is your position on the idea of building out that wall along the southern border? gov. sandoval: first and foremost, i will have to see the executive order. on my list of things to get done, that would not be one of them. i think that we have a good immigration policy, and we should continue to improve on that policy. that should be an issue that the congress and the president should take on. i have always believed in gaetz -- gates versus fences and having a good immigration policy. i just think there are other things we need to focus our time and energy on. ms. brown: your survey showed that as well.
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it was bottom five. even lower, ok. i will open it up to questions. me start over here, then over there. >> [inaudible] you mentioned, governor sandoval, the possibility of state and local taxes. [inaudible] aside from the flexibility you mentioned, would getting rid of the state and local taxes option hurt your bottom-line? how? what difference would it really make to the revenue in both your state and your stay, governor mcauliffe? gov. sandoval: it is interesting you asked me about that, because when you come to nevada, we have no state income tax. [laughter] gov. sandoval: so there is nothing to write off. that's more of an issue i would probably just give to the governor here. but i do know in terms of the other states, that is very
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important to their economies. gov. mcauliffe: it is a huge driver of a state's economy that relies on it. it is an incentive to bring businesses in, it is an incentive for families to move to your stay. i think it very highly unlikely that they would do anything about that in the upcoming tax reform package. i find that very unlikely between the mayors and governors involved. i don't see that happening. they always talk about deductibility of the municipal bond interest. i think it would cripple the market if you try to end that deductability. if you look at tax reform that would charge the economy, many cities and states are still in a fragile position. if you take away flexibility for the state, the local level, you are really crippling some of the municipalities. i don't think where we are today -- we have now had seven years of sustained growth. that is a long time. we have to be very concerned about what is going to happen next with our economy. i am a little concerned about our trade policy.
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as a state that last year did 32.5 billion dollars of trade, those tpp countries, 65% of my trade was done to those countries. i think we need to be very careful. i am for open markets. i am for competition. but we are a big trading state. 95% of the world's customers live outside the united states of america. ms. brown: quickly to follow-up on the state multiple deduction, is it a greater benefit to states with more high-income taxpayers? gov. sandoval: what was that? with high states income taxpayers, and why does that matter to you? gov. mcauliffe: i think it is part of people's individual tax planning and what they do and where they make the decisions to live and where they want to put their businesses. it's part of your economic bucket to recruit businesses and families to one state.
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it is part of your economic arsenal. >> [inaudible] i wanted to ask you your thoughts on how president trump -- punish furnish sanctuary cities and how that could affect your state. gov. sandoval: i don't know the specifics of that plan. certainly, i don't want to see anybody get punished. i someone that has been am supportive of daca and i have passed some policies within nevada that are beneficial to immigrants. our universities -- that has been an issue of their. my understanding is our universities will be sanctuary sites. again, it's one of those things -- i don't want to anticipate anything until i see the specifics of that. gov. mcauliffe: we just don't know what he is going to propose. at the end of the day, for every governor, you want an open and welcoming state, you want to treat people with dignity and respect.
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i also have pushed legislation to deal with individuals -- the dreamers and others -- to make sure that everybody has an opportunity for the american dream. i agree with governor sandoval. i want to know what our immigration policy is heard -- is. building what could potentially be a $20 billion wall is not an immigration policy. it's not. it's the first couple of days, but i am concerned about the rhetoric that has come out. mexico is not paying for the wall. we are going to spend some estimate. congress has said eight, others say 12, 14, a report today said it could be 20. at the same time, you are announcing a federal freeze on federal workers. as governor of the commonwealth of virginia, that is disconcerting. bipartisan democratic and republican members of congress in virginia have come out to condemn that. we have an aging workforce today in this country. we are trying to incentivize young millennials to come work for the federal government.
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i had the same issue, and i am sure governor sandoval does, with our states. it's an aging workforce. you want to entice people to do good public work in your state and your federal government. freezing the workforce, freezing the pay raises for the federal workforce, to me, is not the right step that the president should have taken in the first week of office. we have to incentivize people. we want them to come work for the federal workforce. but the long-term effects of this, i think, could be very hurtful to the united states of america. and spending $20 billion on a wall at the same time you're freezing and taking incentives away from federal workers, i don't think is a good policy. gov. sandoval: if i may follow up and perhaps this is not in response to your question, but we have a very large amount of linguists -- large amount of english language learners in our state, and as part of my budget, i made massive investments in that population and we have created what we call victory schools, which is extra money for those schools that have large populations of english language learners.
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we allow for the undocumented to be eligible for our millennium scholarships, which allows them, when they graduate from a nevada high school, to be able to attend in nevada university. i signed a bill that allowed for a daca individual to obtain a teaching license in the state of nevada. i think we are very receptive and a state that has had to respond to a large amount of immigrants. i think we've done real well. ms. brown: let's go here, then there. >> [inaudible] you make your voice heard on international trade in this discussion of borders [indiscernible] there is a question of tariffs on companies that import stop to the u.s. gov. mcauliffe: once again, the devil is in the details. we will see what he proposes.
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we can't have a trade war. we cannot be protectionist in this country. as i say, i big trading state. am ai sell a lot of ag products. i have done 22 trade missions in my three years as governor, all over the globe. our numbers are up dramatically. we just moved to second place in the east coast for largest exporters. 320,000 jobs in the commonwealth of virginia are directly related to trade. so i am just very concerned about how we are going to treat our trading partners, how we talk to our trading partners. listen, i supported tpp. i felt and i worked very closely with president obama that it did the environmental protections. it also had worker protections in it. it was really advanced forward on the digital economy and things that we could do as a nation on that. and it gave us access to markets. and let's be clear. china i believe has already done deals or in the middle of doing gears with half of the 11 countries. the other half are lining up to do deals. we can't sell our products to just americans.
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we have to sell in a global marketplace. i always like to say i am the greatest chicken salesman since frank purdue. i've have been to china, all over selling chicken and chicken parts. i have been to china and eaten chicken paws in front of millions of chinese on chinese tv. ms. brown: have you? gov. mcauliffe: i have. i had a bowl of fried cicadas, you would have thought i was eating filet mignon. [laughter] gov. mcauliffe: it is a global economy today, and stopping companies and putting tariffs on -- all i'm saying is that we need to go at this very slowly, very carefully, and we do need to think this out. but there are ramifications to putting walls up as it relates to trade. i know as a state that does a lot of trading activity around the globe, i am constantly working to export and bring new markets in. i just got back from -- i was
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all over in australia. i just went to korea and china. we are selling a lot of products. i am very concerned about it. we just need to tread on this very carefully. gov. sandoval: i will respond briefly. i've been on several trade missions as well. but i have not eaten chicken legs or bugs. [laughter] gov. sandoval: in any event, i suppose i am more of a pragmatist. it is what it is. the president has made his decision. he has signed his executive order. he is going to do unilateral negotiations with countries. i would imagine he would begin with great britain. i think the prime minister is there at the retreat for the republicans, where the president will be. you know, see how it goes. as i said, we can speculate and think how good or bad it is going to be, but he is the president and he's made his decision. he signed his executive order. and we will respond accordingly. you also asked -- hopefully, we
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will have a voice in all of this as part of the is trade missions. i'm out there selling nevada and representing our anchor tenants in terms of our advanced manufacturers and mining industry and others. i do want that to be inhibited -- i don't want that to be inhibited in any way. i don't want to cause my state or citizens of my state to lose any jobs. and if there is an impact, i want to be able to have an opportunity to convey that to the administration and let them know what the consequences of those decisions are. but until we know what the decisions are going to be, as i said, i'm not going to speculate on whether it is going to be good or bad. >> i am david. of transport topics. about to talk to infrastructure, the first topic that governor sandoval brought up. virginia is a leader in piii . the administration came out
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yesterday and said, no new grants or contracts coming from dod until they decide otherwise. i wondered what your reaction is to that, and starting with 3'sernor sandoval, are p going to be the way we are going? gov. mcauliffe: it -- gov. sandoval: it may or may not be. all these questions are speculative, and we are one week into the administration. i will be reading that executive order or whatever official action that you described very carefully, but he also signed an executive order yesterday that allowed for expediting the environmental pieces of the project. i saw that as very good news in terms of federal review of projects to get them going. i know in my state, it will delay a project four to six years with regard to the environmental aspects that have to be conducted before a project can go forward. juxtaposing those two,
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they seem to conflict with one another. but until i read them myself -- i took the executive order that was signed yesterday as very positive news. gov. mcauliffe: i do think the way they are looking going forward is sort of a p3 type model. i have this conversation with speaker ryan today about what we did in virginia. 's are not the panacea, the savior to all deals. when i became governor, i inherited the first two deals i had ever seen done. -- 260 withte to 60 taxpayer money where money had been spent on a road that not a shovel had gone in the ground and it was going to go over 400 acres of wetlands. and in order to do that, you had it had never been permitted by the army corps of engineers, but maybe virginia was going to be the first.
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but to get that, you have to apply for a permit from the army corps of engineers. no permit had ever been applied for. and we spent $300 million. i told companies very clearly i don't blame you. i did some renegotiating. the deal was done before i got there. i said, we are going to do some renegotiating. i made it very clear if you did not renegotiate, you will never do business with the commonwealth of virginia again. and i got $340 million back. but i want to be very clear, p3, you have to be very careful. the way we do it in virginia, all these new roads we are building -- remember, these are choices. so you have free roads. and i am building you a new free road. you have an option if you want to do an express lane. this is a choice. so i am being able to use private sector money to build beautiful new free -- everyone can still travel for free in the commonwealth -- but if you want to get in and express lane, you make that choice, all of that is being paid for by the private sector and it's clear that this
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is the way the federal -- give us a partnership deal and we will use your money and we will turbocharger with the private sector money and create not only roads, but rail capacity. in this nation, we have to do a lot more on rail. i don't have to tell anybody here in northern virginia -- it took me an hour to get in from mclean today to go to the capital. it's eight miles. it's eight miles. we're doing the best we can. that's why so many of the new opportunities we have -- we have to do a lot better in this nation on rail and transit capacity. >> quick follow-up, the fast act was the first time anyone has given states money in a long time, but they still did not raise the federal gas tax. do you think there's a chance we will ever see that change? $1 trillion has to come from somewhere. : i know thereiffe is such hesitancy. i'll be very honest with you -- virginia got 20% of the
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allotment of all 50 states, so i'm very proud of the atlanta -- atlantic gateway. we will revolutionize rail and freight and road construction and bridge construction and high-speed rail in virginia. we could not have done it without that money. people got mad and asked why virginia got so much. because we have the best project. if you have good projects, you can get a federal partnership with the federal government. at the end of the day, they want to make sure we are serving underserved communities. i'm never one to argue on the gas tax. we could take that money and turbocharge it with the private sector and get a much bigger bang for the book. i have an increasing population rate. half a million people in northern virginia. every day, it is exponentially growing. we have to move people around. >> the other thing i would throw the highwayarks on
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trust fund. if you have ever been to las vegas, there is a spaghetti bowl where interstate 15 -- how many people have been to vegas? in any event, it's very hard for us to plan long-term on this types of projects. this is a four or five year project. unless we have the kind of certainty, i cannot commit to that not knowing two years out if we will have -- not knowing if we will have the money. >> i think we have time for one more question. >> a lot of people have been trying -- or hopeful about the proposed infrastructure spending that the new administration has been talking about, and a lot of different people are hoping the projects are going to fit into the definition of infrastructure
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. they hoped updating legacy i.d. systems systems and other additional projects will be included. what are your ideas around how flexible the definition of infrastructure is and how creative people will be able to get with getting funding for ? ojects governor mcauliffe: it is a broad definition of infrastructure. financial growth in west virginia, we have the largest naval base in the world down in hampton roads. opening up dredging there for our aircraft carriers and nuclear subs that we have is important, so i would say also dredging, what we need done is a national security interests. it is important for virginia, so i have a broad view of what infrastructure is. if it increases capacity for a state to grow exponentially, to
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help economically at is in the best interest of the united states of america, i would have a broad definition of what you would you infrastructure as. governor sandoval: i would agree with the governor. obviously nevada is a little bit different. we have some very wide-open spaces and i would love to see some broadband connectivity for the rural residence in my state. that would be an incredibly important infrastructure project that i would like to see happen, but i already talked about her state 11. i talk about our industrial parks that we would like to see an opportunity to bring in some of the infrastructure to make the term will use shovel ready so when we bring in more companies to our state they will be ready to go right away. then there is another infrastructure project within reno, another spaghetti bowl that is well beyond capacity that i would love to see funded to improve the commute and the experience for the people who come there.
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have ar mcauliffe: i space for it. increased space for the space shuttle. i think we can come up with a lot of good infrastructure projects. >> thank you so much to both of your product to the nga -- to the nga.ou, to thank you for coming. thank you for your candid remarks. it's always fun to hear governor talk about the federal government. [applause] >> more about state governments tomorrow when the urban institute looks at state budgets and how the trump administration might change the relationship between the states and the federal government. live coverage begins at noon eastern on c-span2,
10:36 pm, and the c-span radio app. >> they said, let me tell you something. i have done everything i can to protect my country, and are not afraid of you. i'm not a rate of president bush, and i'm not afraid of anybody. if i have to give in order to protect my country, i will. and he kind of did this ,ussolini thing with his arms and he just said, but i did not give that order. >> sunday night on "q&a," former senior cia analyst john nixon talks about his book "debriefing the president -- the interrogation of saddam hussein." >> it was a realist in the use of power in the way political power is exercised and the political power game. i think that he saw that when
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,ou are playing at his level when you win, you win big, but when you lose, you also lose big . >> sunday night at 8:00 eastern on c-span's "q&a." >> on today's washington journal," we talk to an economic advisor to president trump about tax and job proposals. this is just over an hour. host: viewers are familiar with stephen moore from the heritage foundation. we are here to talk about trump 's tax plans and specifically a trump is considering cutting the federal budget by $10.5 trillion over the next 10 years.


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