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tv   National Governors Association Winter Meeting  CSPAN  February 24, 2019 9:08am-12:32pm EST

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of foreign relations task force, and this is something that, when i read, i knew that we need to have you speaking to our overall crew. i know that you and your team came up with serious recommendations along the way. can you give us a sense of that? mr. prizker: sure. thank you for having us here today. governor, i think the fact that you have made good jobs for all americans a central these what you are doing at the nga is really important. future, so we are looking at innovative technologies coming down the pike over the next few years and will have >> an impact. we are not democrats and republicans. we are be ceo's and the states that get to build coalitions. >> it is finding better ways to move our states for.
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individually, often it is done by working together. >> it does not matter to me whether you are republican or democrat. >> one of the best things about nga is hearing from the governors and taking back what i learned from them back to my state to improve the lives of utahans. >> nga's future will bring us together to learn from industry experts. >> not only are we hearing from other governors but we are hearing it from other industries that are coming in. talking about things that we not even thought about sometimes. it is helpful for emerging technologies to come in and discuss the leadership and her sass. it is also it -- and their staffs. it is also important for us as governors. >> governors are so important when we have key leaders of the technology sector, and eat with
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we find thatt interaction extremely valuable, because governors can learn from those technology leaders about what changes might be coming soon that they need to deal with and adapt to. getting to know leaders of the technology sector who are going to be potentially investing in their states or making changes that might impact the jobs in their states. >> we don't know what the technologies of the future going to be, but we want to make sure that we have the best possible environment for those ideas to grow and prosper. this is where a governor can really play a role in terms of going out and finding those technologies and bringing that investment to their state. >> the emerging technologies bring a tremendous amount of challenges to nevada and our workforce. our economy is changing, and it is changing for the better. and i think it is really important that governors embrace
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these new ideas, and race these new technologies, and most importantly prepare the citizens of their respective states for the training that they need. is so important because it is the one place where governors gathered together and learn the latest and greatest. a we're getting governors and cabinet secretaries together and learn about what is going on. roundtable discussions, conference calls, reports. aware of innovative technologies that they have to deal with. and nga is the only organization that gives this to governors. there is nowhere else you can get it. ♪ good morning and welcome back to the second day of the winter meetings. [applause] startingre, and we are
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today's program with an exciting timely topic, and that is trade. u.s.-mexico-canada usmca,ent, known as the pashtu many governors, and indeed our town apart in mexico and canada, they are eager to learn about it isxt step and how essentially deepens trade and relationships under the new agreement. ahave the pleasure monitoring panel with three representatives, one representative from each of the countries to gain their insight on the new framework for commerce, but first, i want to hear from the u.s. federal government. we are thrilled to have the honorable larry kudlow, assistant to the president, director of the national economic council. easier to share the administration's perspective not only on the usmca but also on our international and economic
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agenda widely. before joining the trunk administration, mr. kudlow served as the associate director for economic and planning, the office management and budget in the reagan administration, served as chief economist for bear stearns and company, and a media commentator with the national review and cnbc. he leads the coordination of president trump' domestic and global policy agendas. he is here to discuss the usmca, but he also stands ready to answer questions about current hrade negotiations wit china, and trade policies generally, including the use of tariffs. indee it any of youd, one to put back on anything or raise any other issue, please do so. probably the most important and impressive part of his passes he
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was married in whitefish, montana. [laughter] gov. bullock: please welcome to the stage mr. kudlow. [applause] mr. kudlow: exactly right. should i wait? good. hi, everybody. thanks very much. it is quite true. i know i do not really look it, but my wife and seven kids are all from montana. so we can talk about anything. i want to take a few moments, if you will, to walk through and outline president trump's trade policy thinking, and then of course i do want to , which we willca discuss. i will not talk china at the beginning, but any questions you have on china, i will be happy to try to answer as the
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negotiations continue. let me just begin with this onught, the president's view train -- free, fair, and reciprocal. free, fair, and reciprocal. some,f his critics, including my conservative friends, have argued that he is a protectionist. i do not believe that to be the case. it is true, i am a free trader in the building, but he and i have had long talks about this, and i will come up with the free trade and reciprocal. let me talk about what i wrote -7 in canada, in which i collaborated with president trump. his goal down the road is zero tariffss, zero non-tariff
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barriers, and zero celsius. that is the long-range goal, and it is a call to which i absolutely subscribe. that will give us maximum freedom, it would reward competitiveness, it would unleash america's export sales. we have a very strong economy. i am very proud of that. we are the most competitive, after all the recent ratings of national organizations have put us at the number one spot. open your doors, you know. break down your barriers, get us a chance. that is why i say the three zeroes. we won't get there, certainly not overnight, but it is the goal, and we are making progress. regarding the issue of tariffs, that i'd it was more controversial, i will say this, president trump has taught me tariffs are a negotiating tool.
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to in particular, i want note, on tariffs, for example, where we have probably been the toughest, no president, republican or democrat, in recent decades has stayed on china's case the way we have, to, frankly, using tariffs do so to bring them to the negotiating table. democrats and republicans, i am not making a partisan statement at all. it can be used as a negotiating tool. and i think it has. the key point really is breaking down barriers and giving americans -- and i am here as a u.s. economic assistant. ourgive our people, get farmers, ranchers, manufacturers, give our new
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economy intellectual property rights protection. digital protections. opportunity to show you how good we are, and please take down your barriers. that is our basic point of view. first is a troll phrase -- trump phrase, but he will also argue that america first does not mean america alone. not the first to coexist. we are not just america alone. and in fact, i will note right together anput excellent trade deal, in my opinion, and my colleagues and ministers from mexico and canada will be here in a minute. the usmca i think is a very
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strong deal. we are negotiating heavily with china. we are negotiating heavily with your. we are negotiating heavily with japan. we have completed a very good trade agreement with south korea. we are engaged globally. we are open for business globally, and we are engaged globally. let me make one final point on the general policy. to intent has always been create trade deals in america's interest, all of the various sectors of the economy in a bipartisan way. you can push back, and i look forward to the questions and so forth, but we believe bilateral trade negotiations is better and more efficient than
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multilateral. we do not want a low common denominator with adjudication favor the that do not u.s., and we do so because we want to help every sector of the economy, is the notion that we are bipartisan. i think as we get into it with my colleagues on the panel and with governors, you will see much we have tried to have a bipartisan deal. , just a quick review, the way we calculate it, usa will bring $60 billion in new auto investment into the united states. $62 billion. we will generate roughly 80,000 to 100,000 new jobs. you may disagree with that, and
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i might also add on top of that, a bunch of us are negotiating with auto manufacturers in europe who not only expect to come in and accommodate the new ground rules for the usmca, but to do more, to actually bring in more. we are very proud of that. north american continent, 75%. of auto content will be made by workers earning $16 an hour. those are record numbers by far. and with respect to union activity and collective bargaining activity, particularly to our partners in the south in mexico, made new ground, we have broken new ground in every area to promote collective bargaining and to promote their rights and to hold the mexican government's
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international labor standards as well as international environmental standards. we have opened up the dairy farming services, digital services. most particularly, we have the strongest protections written into this for intellectual properties. which is to say innovation and creativity for all of it, because that is the great strength of the american economy, innovation. creativity. that's what makes us great. ics of copyright, laws against piracy and counterfeiting, biological, pharmaceutical, we have gotten the whole nine yards. we will increase productivity for all three countries. has been protected with respect to various investment decisions, and we compromise heavily, so there is a six-year
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is aw, and then there 16-year cap on the whole project. so i am proud of that. bob lighthizer, who could not make it this morning, my colleague, i think he has written a template for a new trade deal across the board, and, if you will pardon me, i want to note one key point here. one reason president trump wants bilateral deals rather than these large multilateral deals is that he believed the bilateral deals are much better and hencean interests bipartisanship. historyeral deals, the is not good, flex ability is low, it is the lowest common denominator, and i think the idea of bipartisanship, at least i hope it will take hold in this
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.onference final point, i will say proudly we are growing at 3% right now after inflation for this time of year. many of my friends on the other side of the aisle thought it could not be done. position,s in a great i might add. way, i was a former governor before. i worked for two presidents. whold reagan, donald trump, were former democrats. i always believe that the best republicans are former democrats. a little bite with of truth to enter it regarding 3%, i believe our policies of is working, our policy of the regulation is working, and i believe our policy of traders working.
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disagreement.he i had so many distinguished democratic economists on my tv and radio shows over the years. i can never get angry at them. but at the moment, the numbers look good for us. if it is not true, i will have to toe the line later on. i get that, but we have to stay with our policies, low taxes, regulation. folks, i will just conclude unemployment rates are low, the individual, you know, african-american, hispanic -- actually women, the labor participation is rising. the biggest rocketship is the reinsurance of women. and people from the unemployment rates are now moving back into the employment ranks, because wage rates are rising. we are very proud of that. i think the country has
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unlimited potential. boss, president reagan, says the best is yet to come. my current laws have the exact sentiment and express it. i am a believer in free enterprise. capitalism, not socialism. every night on my tv show, i began by saying free-market capitalism is the best path to prosperity. globalbelieve in cooperation. so does our administration. open believe america is for business, open for business, and i will say to you, as head of the national economic council, for both parties, i say to you genuinely, to both parties, tell me what you are thinking, tell me where we can be helpful, tell me what you would like to change. i think this is the greatest country on the earth, and i
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think we will remain so, and it is my hope that we will work together to realize our greatest potential. thank you. [applause] >> ladies and gentlemen, please welcome our panelists. mr. kudlow: thank you for that. i appreciate it. gov. bullock: thank you, mr. kudlow, for the update. i have the distinguished pleasure to introduce our distinguished panelists. we welcome jesus, deputy minister of foreign affairs. [applause] gov. bullock: the deputy held an important
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role in creating nafta, and we had to spend some time with him during the president's eggnog duration. -- president's inauguration. welcome dr. mark, canada's minister of transport. to be prettygot amazing to be a minister of transport, not many people can say they are an astronaut. thank you both for joining us today. we look forward to your insight, deputyill first turn to .inister
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>> it is an honor to be with you. to first act, i would like develop something that mr. kudlow already alluded to, which is that the world is moving increasingly. is cheaper, information is free around the world. we have a hyper integrated group. a friend in any way. we have 27, 28 now, countries. not only a 27, 28, but also for countries around that. then you have china.
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china has become richer and richer over the last 40 years. years in particular. it is investing massively in neighboring countries, like vietnam, bangladesh, thailand. this includes economies like japan and korea. basic care of them and i have to say have become the largest economy in the world. so what about america? america has to keep up and serve as leadership, the most advanced, the most dynamic, but reinvent needs to itself. now that done wonders for 25 years to give the economy is edge, but it had difficulties, and now we have achieved act ii. what are we bringing?
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.5, developing rules where we do not have rules, like, for example, digital trade or labor, bu the main thing i wt s is consistent with president trump's vision, the new agreement makes it more demanding to bring trade into chain.duction the so-called rules of origin become uniformly more difficult. japan, into the production of bmw or toyota in the region. instead of that incentive is and that is what we talk about the vision of president trump, reinvestment. investment now have every reason to come in a much more noticeable weight into north
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america. instead of bringing from germany or korea 38% of the cost of your car, 35%, and everything more or less has been manufactured here. be high wages, like and the unitedda states, and you increase labor standards, and the pro-investment regime, that is my bottom line. of course trade. it is unique for employment and so on. so it is a good investment, but it is something that will help preserve for the region. now, across borders, coming
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and going, crisscrossing across the region, so we have to protect the, to develop that, so we have an efficient region. mexico is the most formidable for growth in the region. but canada and mexico, mexico in particular, bringing efficient for the activities, a growing market, same with canada. act, being more of theted, not part trade rules, like labor standards. sole portion in nafta, the democratic party warned, president clinton, when it was completed, and there was a big effort to bring in labor
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standards, it was not possible, and it stated the agreement. now they are a central part of the new agreement. anticorruption. support, medium enterprises. helping me efficient. strong social agenda will be the benchmark for future trade agreements. so increasing through integrating investments and a strong social agenda. that is for the united states, canada, and minister. thank you, deputy minister or it very much appreciate you being here. before diving into questions, we are going to hear from minister 'srneau., minister garneau:
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perspective on the agreement and what governments ought to be thinking about along the way. minister garneau: thank you very much, governor bullock. it is a real honor to be able to um of governors. let me start with perhaps a remark about my strong association with the united states. i did live for nine years in houston, texas. i have the honor to be part of the astronaut program. flew on the endeavor twice. carry two children who u.s. passports. i have many relatives who are u.s. citizens. navy,early career in the i worked a long time with the u.s. navy, so i have a very long association with the united states and care deeply about our relationship, and i am not that different from most canadians. we are here to talk about usmca, or as we call it in canada,
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cusmca, but who cares what we call it? [laughter] minister garneau: we are talking about the same deal here. after a year and a half very hard negotiations, we came out what please feel to be a very good deal, and we find it last -- signed it last fall. states feelsnited the same way about it. the president trump said this is an extremely good deal for the united states, the usmca, and to quote mr. kudlow, yes, the president did say at one point as far as he was concerned, andsing a tariff on steel aluminum was part of the negotiating process, but he also sent once we achieve a deal that was good for the united states, and he has said that, that those tariffs would be removed. so in our situation here in canada, we can begin the process
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ofusmca as of the 19th march, and we want to go ahead and do it, because this is very good for both of our countries. canada and the united states have the largest trade in the world between two countries. in 2017, andlion 435 of the 50 states, canada is the number one export destination that are made in those 35 states, and in many other cases the second-most important designation. we want to ratify the usmca, but we have a serious challenge in canada, and it is not the fact that we have an election year this year, which we do, and which will cause us to lean toward other priorities in the coming months. it is the fact that those tariff s on steel and aluminum are still in place, and those tariff
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s affect not only canadian workers and industry, they also affect u.s. workers and industry. tore is plenty of evidence support that. arehis point, those tariffs an unnecessary tax, which is weighing down on both countries. so i would be remiss if i did not say that this will present as weh real challenges begin the ratification in canada. i do not know if we're going to get there. can very much, and i am making a plea to the governors, that you bring up with the residents of the united states arefact that these tariffs a serious impediment to us moving forward on what is the best trade deal in the world. we all agree on that. the usmca is extremely important for both of our countries to usher in a long period of
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stability, of investment, as the under secretary said, but we need to move away from these invoked which were under national security reasons, which is, frankly, illogical. the united states has surplus in steel with canada. we buy more steel from you than any other country and all other countries combined, when we are talking about what you export in steel. in terms of aluminum, yes, we do so you more aluminum, but the united states have a need for 5 million metric tons per year for its own requirements, and you only produce 2 million tons. you need to import, and canada is one of the countries that would like to continue exporting its aluminum to you without tariffs. we are fortunate that we can produce aluminum, because we have lots of energy in our country. it is a more challenging
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situation here. what i'm saying is this -- we do not at this point, now that we have secured a good deal on usmca, need those tariffs in place. thank you. gov. bullock: and if i make him thank you to the minister. minister garneau: thank you. light heiser dr. and his group, we are working on that, we are working hard on that to solve that issue. minister garneau: thank you. some have said this is a little much ado about nothing, cosmetic changes to nafta. is that a fair criticism? if it is not, then from you all's perspective, what is the most significant difference is that both governments and people
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in all three of our countries should understand and highlight? let me give my thoughts on that. briefly to treat us as good as the mechanism is offered is good to solve problems, and it is really kind is theof date, so it ones that are clean, updated, and secondly, as i said, the investment part is very important. integrating the region for investment. we did not have any for environment or a number of things. externalration of our business, it is no longer external business, because we are in this together.
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so i think without turning over fundamentald free-trade provisions, but it is creating trade. dir. kudlow: i think the ministers -- that is a very important point. in the past, including the original nafta, i was around. i actually served in the reagan administration when he served. that was the beginning of it. i was 13 years old at the time. [laughter] dir. kudlow: sitting in omb. but our leaders were very close, and they both shared that vision. subsequently, the clinton administration, who brought in the mexican side, amidst much criticism and hostility in
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politics, did a great job, in my view. i think, correct me if i am wrong, it was vice president al kicked rossd of perot's butt on the larry king show. gov. bullock: i missed that one. sec. seade: sounds right. [laughs] dir. kudlow: i have been around so long. but that is another point. labor, environment, we have a currency provision we never had before. we have protection of intellectual property rights. we have never had that before. digital, financing services. we managed to come to an agreement on agriculture and dairy farming. these are all very hard things to do. and i am just looking at the
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side-by-side, yes, it is better. do you know what else is better? done, andood deal supply chains and business activities continue. they are essentially uninterrupted, and this will be the most prosperous trade agreement. sec. seade: exactly. dir. kudlow: so i don't know, i just love this. gov. bullock: mr. garneau. minister garneau: nafta was great when it was brought in 25 years ago, but the world has changed enormously, and i'm not want to bring up what my colleagues set, but with respect to the averment, the fact that we are taking a more focused approach on intellectual property, these are all the things that needed to happen, so i think this new deal, the usmca is aone for 2019, and
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necessary exercise. in six years, we will review it. these are evergreen traded arrangements that have to take into account changing circumstances, but i think we are in a great place now. gov. bullock: do any of the governors have a question? governor herbert? gov. herbert: thank you again. it is an honor to have you all here to help us understand trade and some of the challenges that we face with our friends to the north and to the south. the longer i have been around the national governors association, the more i have come to appreciate that for most of us, our goals are the same. the outcomes we are looking for are the same. ,e sometimes differ on process the pathway to get there, the role of government in our lives, redistribution of wealth, all of these things, which is why we have different parties. one thing we all agree on is fair trade, free trade --
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free-trade is i guess what we agree on. fair trade, such as, beauty is in the eye of the beholder. didelp in understand as how we get into this mess, where we have so many different trade agreements with so many different countries? should they be different? proportion every trade agreement with every country be exactly the same? dir. kudlow: good point, governor. look, i do not think every trade deal in every country should be the same. i think each one has unique characteristics. we have -- we are engaged right addin trade talks, i might intense trade talks. folde not gotten above the coverage yet, but we are working with europe, which has similar but different situations. we are working with japan, which has similar but different situations. and of course we are working with china, which has, in many
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respects, the most differences. president trump has argued for bilateral trade relations rather than multilateral trade deals. and i know not everyone agrees with that point of view, but he makes a couple of points that may help answer your questions. one of the points is these large-scale, multilateral deals, frankly, do not help the united states as much as they should. secondly, any adjudication es actually run against the united states in many cases. now, we are all working with the wto for reforms, yes. , we have to make the best deal for america and
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america's, shall we say, different economic sectors or constituencies. my interest is on bipartisanship comes from the president's own thinking. it may not always appear that way. i understand that. i do not want to swim out of my way. i am not a political expert. but we are cognizant, sensitive to the fact that certain parts of the country have certain priorities. they may be democrat republican, red state or blue state. we want to try to accommodate everybody, and i do not think you can do that on these big multilateral deals, frankly. point,ybe at some future if we have bilateral fta's, we can get around to multilateral. the minister mentioned trading blocs. perhaps so. but the president believes that america has not had a good deal.
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let me just follow up. if the goal is to have no tariff s, and have everybody the same, which you said in your opening dialogue, if everybody is treated the same, that is pretty there areif exceptions to that where we have to have different trade agreements with different countries for probably a variety of reasons, so it looks like those are counterterror intuitive to go to zeroounter across-the-board come up and say there are certain exceptions to that for some countries. dir. kudlow: you know, it is a kudlow intellectual thesis. here is where we would like to go over a long period of time, but it is not easy, and again, this is absolutely not a political statement.
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we believe, the president believes that prior administrations and congresses, under both democratic and , have not majorities done the job. the goal is, yes, zero subsidies. meanwhile, along the way, we want to make things better. that is really the point i am saying, and i do think the two can work together. as far as free zero, i may not be around to sa see that in my lifetime, but i think it is a worthy thought. i am just saying if we can have free, fair, and reciprocal, we will all benefit. withent a lot of time congress. we spent a lot of time with the unions. we spent a lot of time with our cousins in canada and mexico. these are hard things to do, as you probably know. which state are you from, sir?
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ok, so you understand. it is hard. gov. bullock: governor sununu. gov. sununu: everybody wants to see a deal done. i think it is a good deal. it has a lot of good provisions in it. sting, they do, but it is allowing something to get done. is a big domino to fall to put pressure on you to ge, to put pressure on asia, to get these big deals done him a from a u.s. perspective, but from a north american perspective as well. i would like to ask larry -- how do you see the tariffs coming into play for the u.s. ratification process? is that something that will be done in parallel? something you see the of administration doing alone? is congress picking up a ratification process this spring?
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and if i make, what is the ratification process in mexico? i do not understand what the next steps are. i understand what canada has to do, but is it a similar process across our southern border? sec. seade: if i may start with the last question, governor. thank you. mexico whoenate in has a jurisdiction. active,f been very starting the view from the end of the negotiations, in the fall, september. changes have happened since september. we have explained this to them many, many times, and there are concerns, but i think on balance, they will support. i am confident they will support , with all respect to the u.s. decision-making process. i hope they will support.
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higherbe my hope is much than mexican confidence, but there are a few areas that are painful, and i think senators will cooperate. when? we are carefully watching the president of the united states, move. will try to get a dir. kudlow: it is a pleasure. , and governorany sununu, it is a great pleasure. under the rules, as you may know, we have voted, and we are moving towards that. it is funny, it is a little bit under the radar, because china is in town, but actually, this is a huge priority for the united states and for our administration, and we are working in earnest with both democrats and republicans.
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naturally, speaker pelosi, one might add i interviewed three times on tv down through the years, has offered bob lighthizer a number of, i think she calls them usmca 101 members ofth various their caucuses or their conference, so yes, we have to get it through, and same with the senate. can i make a broader point, though? you,ught heard this, from governor, it also mr. sununu. long,ow, we have a positive alliance with the european union, with mexico, with canada. usgod, canada has stood with for so many years. the china thing is tougher.
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i am happy to take questions on china. china thing is tougher. i know sometimes our team is isolationistsng or anti-globalists or something . at the u.n. meetings last fall, theigned together, the eu, united states, and japan, a trilateral statement, which was strong screedvery against what was called a nonmarket economy, meaning china, and i might add our friends in canada and mexico were well aware of this and approved of it. i helped sell it to the president and bob lighthizer. the reason i rate that is --
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raise that is i want our chinese friends to know full well that what we used to call the western create aands united to new global trading system ,overned by the rule of law which has really broken down in the last, i don't know how many years. does that isolate the chinese? or does that get their attention? i believe it did. little things like that, and then we promoted it. --t is the kind of thing there is international politics going on here. it is a great game. it is still alive. they wanted to deal with the eu, and the eu said no. they would rather come to america. they wanted to deal with japan, japan said no. they went deal with america.
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on the eve of the huge conference in singapore, i believe, it was sometime late last fall, on the eve of the big conference where president xi was to get a big speech, the french and german ambassadors , ite a scathing editorial --nk it was in the old ft," in the "ft," that i'm not sure, saying that we cannot tolerate nonmarket economies because of the harm to our economy, and they got that message. now, right now president trump and president xi have an improved relationship, and they will probably get together sometime at the end of march, probably again at mar-a-lago, to put the finishing touches on a deal -- we hope. i am just saying that is the idea. but we are putting pressure on the. my second point here, drive the
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legislative process. passing the usmca would be so helpful as a show of unity here in north america and at the show to china that we are unified in this new world of trade. give us a leg up. it would give us momentum. i am really making a pitch to you, folks, on both sides of the aisle to help us in congress with the usmca passage. you can call me anytime day or night. the same is true for light stevebob lighthizer, minutia mnuchin, the same is true for the president. that is how much we value the usmca. growth and prosperity rules and sends a message to china that they have to play by the rules. gov. bullock: thank you, mr. kudlow. as we wrap up, i would like either minister garneau or the
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deputy to provide any closing comments. minister garneau: thank you. i will make this very brief, and i will not belabor the point that i brought up in the beginning. if the tariffs on steel and removed, canada will move expeditiously towards the ratification of the usmca. we believe very strongly in it. we will also drop the $16 billion in counter tariffs, that we felt obliged to impose and which we know our affecting many american companies. so i do not think we could be any clearer than that. we want to see usmca ratified in canada. i hear you rather clearly. [laughter] sec. seade: if i may say, there is no more democracy. we have an amazing richness of
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debate, and of course it is not only expected but that it is as deep and difficult to debate on something as important as the usmca. if the division of labor among politicians, i get governors have a role from legislators. you are close to the ground, closed the economy. i am not going to say that everybody supports the usmca, not at all. it would be presumptuous. i think on balance it is a group of politicians that understand directly the benefits of this. debate. more echo what my good friend esther garneau -- mr. kudlow just said, the call for you to help the process and help
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us help the process, to guide the people in the white house. help with this or that, the canadians, how to pass message to political parties in the united states for this to go through. to real a direct line thinking through your connection with the economies in your states. make it happen. thank you. partnerships between the three nations happen long and our histories are woven together and we need to look forward to continuing partnerships long into the future. thank all three panelists for being here. . [applause] governors find they want to increase the amount of drops in their states. they want innovative technology. they want direct investment from companies throughout the world. the way to make that happen is
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they have to engage globally. the national governors association recently launched nga global. the purpose of nga global is to provide technical assistance and help governors make sure that they are developing the relationships and getting companies growth the world to consider their state for further economic development, for further investment, and for further job creation. states, more to for particularly in nevada, to engage in trade globally because it is now a global economy. one of the frustrations for foreign countries as they do not want to have to do things 50 times. as aving nga global clearinghouse, initiates a great partner in terms of directing foreign countries debt nga is a great partner in terms of directing foreign countries to specific needs. -- while forging stronger educational, cultural, and political relationships around the world. >> this is an opportunity to get
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access to important people that may help you do more business and create more jobs in your state. we have been fortunate that we have had the president of ghana, prime ministers from places like australia and canada. what governors find is they learn from those countries. they also develop relationships. it allows them to encourage those companies and those countries to consider investing in their state. a over the years, we have had solid history from our relationships with companies that have built up and families that have connected on both sides of the borders. the only way to ensure that we continue to maintain and prosper together is to have these sort of relationships with elected officials. >> it is critical for states to engage in issues globally, around trade investment. number onerizona's trading partner and our neighboring state to the south is sonora. we are blessed and lucky in
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arizona that we have a leader like evan or claudia pavlova. she was the first female governor in the history of the state of sonora. [speaking spanish] >> arizona and sonora find common ground and shared goals and things we can work on together like economic development, like public safety. i think when we look for the common ground, leader to leader, on things we can do to improve prosperity of our state and to make sure it is more peaceful is a benefithis to the state of arizona, bringing jobs to our state and to her state. >> the national governors
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association offers anna norma's amount of services to governors, their cabinet secretary's, and their staff to ensure they are learning and sharing information across states. >> we are not democrats or republicans. we have got to build coalitions to solve problems. >> it is building those relationships, finding the best ways to move our states forward oftendually, that is done by working collectively. >> things that have been successful in my administration have been done by other governors. >> you're dealing with issues and problems most people do not understand. to have the ability to sit down in a room with your colleagues that may be sharing similar experiences and having an open and frank discussion, and the beautiful thing is you can not tell with the. republicans and democrats are if i did not have a scorecard i would not have any idea. >> nga was a fantastic resource
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for me. i reached out frugally to nga. an issue, there are people who can help. once you know who to contact. >> there are some new ways to tap into that expertise and to the knowledge and the progress that nga helps drive. ♪ >> good morning, everyone. time to wake up. duceyrizona governor doug and chairman of nga's economic development and congress committee -- commerce committee. it is my honor to be here this morning joined by north carolina governor roy cooper to share this session on entrepreneurship. i think we all know in this new
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era and new economy, this is a time when companies can start and a scale anywhere in the world. to maximize these opportunities, we governors must work with private industry to create an environment where we can innovate and flourish. the conversation we are going to have up here today, and it is going to be a conversation, open for questions, provide us a chance to fix their -- to share the successes we have had while cultivating a culture of entrepreneurship inside our states. how excited to hear organizations like revolution are helping our states innovate every sector of our economy and thrilled that steve case is joining us. of me talk to you on some the things we are doing in arizona to have an open for have as attitude and
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competitive environment that is dynamic with other states. we have had a moratorium on rules and regulations that have been renewed every year i've been in office. we have paved the way for self-driving technologies and waymo andh lyft and brought national and international company's the state. snternet -- entrepreneurer can crowd fund. we have been the first state to pave the way for 5g and we are the first state to pass legislation to create a regulatory sandbox program to develop and tax syntax products and services. these are things we are excited about and things we want to hear more about what is going on in other states and ideas we can apply in our state. with that, i want to hand it over to my partner on the commerce authority of economic development committee and that is governor roy cooper from north carolina. tell us what is going on in
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north carolina. >> i have a mission statement for north carolina. where a north carolina people are better educated, where they are healthier, where they have more money in their pockets and they have opportunities to live more abundant and purposeful lives. the third grade class i told that to a few weeks ago liked the more money in your pockets part of my mission statement. we want a prosperous north carolina. we want a prosperous country, and we know that innovation and entrepreneurial ship is a way to get companies started. they grow and create jobs for a lot of people. in north carolina, we have the with toddich started olson, who is in raleigh. google.d with cisco, he started growing this company and now they are expanding. they could have gone anywhere in
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the company with their expansion , but they decided to stay in raleigh, north carolina because of our amazing talent cluster there. we have some of the greatest universities in the world in the triangle area, in charlotte, where global banking capital. what we're doing in north carolina is trying to kickstart innovation and entrepreneurship. we have 1.6 million north carolinians who have their jobs in business. that is 45% of our private workforce. we know that we have to work hard to give people opportunities to innovate. there are some obstacles people are facing. one thing with young people is that we have $41 billion in student debt in north carolina. there are a lot of young people
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who have to get jobs with companies that do not pay off these loans and it is much harder for them to be in a position where they are able to innovate and start their own companies. i have appointed a north carolina entrepreneurial council to try to help us deal with these issues. issuesof student debt, in making sure that entre nous --ship -- vieques availableurship is for people of color. we are the state that has the largest percentage of women in our tech support force. we are encouraging a lot of efforts that are out there right now. the american underground is named by cnbc as the start up hub of the south. we are working to collaborate
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and bring innovators together, trying to attract that capital. we have worked hard in the area of life sciences. we have the north carolina biotechnology center that provides loans and grants to worthy startups, to help them get going. they provided funding to over 3000 projects in north carolina. we still have a lot of challenges. there is a lot of rural areas with lack of broadband. we want to make sure that not just tech startups and not just life-sciences startups but all kinds of businesses can start up and innovate, whether it is a barbershop or a farmer that wants to grow their business. i look forward to hearing from steve today and i look forward to your questions because we know there is a lot going on across the country. we try to make sure that we stimulate our innovation and entre nous worship. it is my honor--
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to introduce steve case, the chairman and ceo of revolution, a dc-based investment firm that partners with entrepreneurs to create businesses that are built to last. 2014 worth noting that in revolution launched the ride to the rest, a platform that shined a spotlight on entrepreneurs and scaling businesses outside of silicon valley, new york, and boston. prior to revolution, we all remember that steve cofounded america online, which change the world and the way we did business. it became the world's largest online internet company. didhange the way we business at cold stone creamery. steve is the chairman of the case foundation, which he established with his wife in 1987. together, the cases have invested in hundreds
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organizations and partnerships with a focus on leveraging the entrepreneurial approaches to strengthen the sector. i want to welcome steve case to the national governors association. thank you, the nga, for focusing on startups, on leveling playing field in terms of opportunity. this is a great nation and it is worth a member and that 250 years ago it was a start up. it was just an idea and now it is the free world. democracy butent also because of entrepreneurs leading the way in the industrial and technological revolution. we went from a fragile start up nation to the strongest economy and significant global influence. are we going to continue to maintain that leadership? i think we can and should, but
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we only can if we level the playing field. everybody, everywhere does have a shot in america. toas surprised when i got cochair the national advisory -- start for america, which i chaired. worked with president obama to pass the jobs act. i stumbled into these policy issues, but i did not realize until then that jobs are crated by startups. small business accounts were a lot of jobs. big business accounts of -- for a lot of jobs but not for job growth. 1% of startups account for 40% of jobs. we need to focus on startups if we are going to get the job creation engine going and not every startup wants to our needs to raise venture capital but there is a correlation between the ones that do any ones that grow faster and create the most
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jobs. here's the data that has led us to focus on this. year, in this country, 75% of venture capital went to three states. california, new york, and massachusetts got 75% of our capital. california got 50%. year, over 90% of venture capital went to men. less than 1% went to african-americans. are a stronge nation, the reality is it does not matter where you live, what you look like, and who you know, whether you have an idea, you can pursue the american dream. that is why we are trying to get capital from the coast backing entrepreneurs and other places. to keep at it. we believe this is the way to
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make sure there is opportunity for everybody and to deal with issues prayed i know governors have many challenges and i respect that. i am bothered by the fact that a a 75% of says americans are anxious about the future, fearful about the future, that technology and this disruption my friends in silicon valley and elsewhere celebrate. a lot people feel like it is going to hurt their family and community. it is going to. technology is disruptive. ago, 90% of us worked on farms. that ai is going to disrupt jobs is not a surprise. the question is can we disrupt -- create jobs across the country. i am glad nga is making a real focus. gov. ducey: steve and i share something. we both started our careers at procter & gamble and he is aware
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of the initiative of search and reapplied, which is looking for best practices around the world that you can bring back to the headquarter office and apply legally and ethically and with attribution. we did that at cold stone creamery. we look for the best franchise models, the best branding models , the best unit economic models. you travel the country, what models do you see in other states that governors should be aware of and what best practices do you see among entrepreneurs so that they can access capital outside of the markets of boston, new york, and silicon valley? some thingsere are beginning to happen in different states. we have visited three cities. we have done bus tours, 10,000 miles. we have been places like nashville, new orleans, phoenix, buffalo, chattanooga.
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all different parts of the country. there are interesting things happening. there is a sense of possibility. the thing to watch is governors. track the flow of capital. are you getting a greater share going forward? and also tracking what is happening with talent. what is happened across the country, i am sure in all of your states, is a brain drain. people growing up in your communities went to your great universities at the left, usually to the coast because they thought the opportunity was better there. drainn we slow that brain and create a boomerang of people stirring to come back? -- starting to come back? the three things to focus on -- one is more collaboration. it is amazing how even though there are interesting things cities,g in different even in small cities, there is not awareness of what is and the partnerships
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-- the wholeral, idea of driving more network, more collaboration is important. celebration is important, which led to the creation of start of america. this is something where governors can use their pulpit to talk about the role of andtups and entrepreneurs building better products and services and also in building and rebuilding the communities and playing a role. president obama agreed to host the first white house demo day where we brought startups from all over the country and the pitch to the president of united states. love is less about startups and their pictures and more about sending a signal that this country cares about entrepreneurship. it is a big deal. i encourage you to do more of that. the final one is capital. done angel taxe
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credits or found ways to back regional venture funds so there is more capital available to under bernie wears -- two entrepreneurs. gov. cooper: you mentioned earlier the abysmal statistics of people of color and women being able to get into the startup economy. companies have found that diversity of the workforce makes you more profitable. in a north carolina, we are working to encourage diversity. i have set up an underutilized business effort to provide more state contracts to minority businesses. we also see in our startup world an organization called black force of the american underground and black text charlotte. you see girls go cyber trying to get women interested in stem courses. what have you seen out there?
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give moree do to opportunities to minorities and women in this innovation economy? mr. case: there are some communities that are focusing on inclusive entrepreneurship as something that can differentiate them and bring more people into the innovation economy. that theapitalists say best way to be successful in the future is to be good at pattern recognition, seeing what a successful already, and do more of it. which kind of makes sense. there is some logic to it. the problem is in the past the things you've been doing our only backing certain kinds of entre nous wars -- certain kinds of entrepreneurs. you are missing out on a broader array of innovation potential. wave isrnet, the first getting online and the second -- this third which is
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integrating the internet in everyday life. health care, education, agriculture, things like that. we need everybody on the playing field across countries we're going to win in what is now a much more intense global competition around entrepreneurship. so much expertise is in the states and the middle of the country, not just on the coast. some people who bring the perspectives they need are going to be people who are not just the usual suspects that venture capitalists backed in the past. we have done these in every city we visited. we have done a pitch competition. usually 100 companies apply to pitch. we pick the top eight and we have a panel of judges. last 10 were won by women. if you are intentional and make sure you are considering and trying to source entrepreneur's
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ideas and startups from a wide variety of places and reaching out to different communities and giving them the opportunity to be on stage and tell their story, there are also companies -- awesome company is launched across the country. american underground has didn't -- has done a great job. they are trying to make inclusive entrepreneurship a thing. four -- focus on inclusive. focus on creating a more interconnected community. that will be the secret sauce that drives innovation and entrepreneurship across the country. gov. ducey: i will open it up for a q&a with our governors. we have a governor who know something about technology, the governor of north dakota. >> thanks. start it withto
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gratitude and say thank you for everything you've been doing, not just today before the last decade to drive attention to this issue. my life trying to attract capital and talent back to the midwest when it was all flowing back to the coast and i appreciate everything you are doing. you talked about collaboration .nd celebration maybe share for governors what you've seen be the best collaboration models and celebration models and how governors can support communities that are working together to support attraction of talent and capital back to the communities that have not been part of the 75%. mr. case: probably 25 years ago, 30 years ago -- the internet was still -- when we started aol in 1995, 34 years ago, only 3% people were online and they were online an hour a week.
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most people did not know or care about the internet. we were colleagues and trying to get people to pay attention to what we were doing. i know we have limited time. we did publish last year a playbook around what we have .earned, lessons learned search rise of the rest and you'll get detail what is happening in different cities and what are the key things to focus on. on this specific question of driving more collaboration, it is really using your power to bring people together, partly to shine a spotlight but mostly to bring people cross sector together. it was surprising to me that some of the large companies in your cities and states, the fortune 500 companies, need to partner with a start up to stay
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agile and understand what is happening with startups, particularly in this third wave. it is not about the software. it is how you get integrated and embraced by doctors and nurses and hospitals. it is more of a system effort. the food system is a systems effort. you need to build these connections so bigger companies are likely to remain big companies by understanding what is happening around the fringes. small companies need that market access and credibility that the big companies can provide. universities are a great place where people are learning things and ideas are being terminated -- germinated and a level of expertise and ideas being generated are fabulous. most universities are not good at getting those ideas out of the lab and into the marketplace. so figuring out ways to encourage more of that entrepreneurship connection is important. different people are doing it in
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different places. we are delighted to see examples already that have percolated. if we put much more focus on it, on the future of our -- every 25 500s, half of the fortune turns off. on theare not focusing startups today, some of your big companies are going to fall by the wayside and you will not be replacing them with new big companies. that is why there is the celebration of start up to try to create a more level playing -- playing field. >> we have time for two more questions. we will go to governor guerrero from guam followed by governor hutchinson of arkansas. >> thank you. i got so excited when i heard all your comments because there is an idea that i wanted to do in guam in terms of innovative
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andaqua thatip is aqua and that culture. one thing i wanted to do is collaborate with our community college to teach our students about aqua culture and then government could help them by giving them a prompt and learning how to grow it and learning the marketing and so forth and then going out and being entrepreneurs. your comment about collaborating with the universities -- our university of guam has done research for agriculture. they have a difficulty, like you said, bringing it into the communities. i want to hook them up with our guam economic development authority. howess i wanted to say --
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do we get these venture capitalists to come to guam to help us with the equity and maybe how to bring it to the community and make potential entrepreneurs? >> i was born and raised in hawaii so i've some sense of what it is growing up in an island and aquaculture is a great opportunity. one thing that is not surprisingly a key point in the playbook is for every state, every governor, to focus on 1, 2, 3 things that play to their strengths. there is something unique about them that builds on their history, whether farming in nebraska or aquaculture in guam or health care in ohio or minnesota. figure out what are the sectors. do not try to replicate silicon valley, compete with the social media companies. figure out what are the things that are unique in your region
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and focus more time on driving on capital -- try to tell the story of what is happening in your city, state, region and try to get more of this venture capitalists who have the money on the coast to be willing to get on planes to visit. curate the potential opportunities. here are interesting companies at the seed stage, at the venture stage, the growth stage. make it easier for the money on the coast to find the right on -- entrepreneurs. what a terrific panel. thank you for leading this. thank you, steve, for your investment of time and energy and innovation. in arkansas, we are doing as other states are in terms of education. we have enhanced our computer science education programs, mandated in every school.
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talent wanted to attract or keep talent in arkansas rather than losing them to the coast. put $2nitiated and million every two years into accelerator programs bringing top talent and financial services and medical services, innovation in technology, to arkansas and having mentors there, trying to attract those companies to arkansas. i wanted to ask you about your first recommendation on collaboration because one of the things we are trying to do is to have innovation and technology council to bring those together. we had a summit for that. how can we do this better? what is the key to making that collaboration successful, to make sure the innovation community knows who else is there and can feed on the energy? >> i had the opportunity if you
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months ago to participate in a heartland summit in bentonville bringing people around the country focusing on driving some of this innovation, particularly in some of the cities and rural areas that have been left behind. that is an example of how your bring eight -- how you are bringing people together across sectors, investors and also people from the nonprofit sector, and driving that discussion and shining a spotlight on the issues as a problem to solve as -- and as an opportunity. meeting, thate personal engagement in leadership that obviously governors can provide. i know you have limited time in the day and a billion things to focus on. one of the priorities is to position your state as a start up state and position it as a place where capital should flow and talent should stay or return and figure out ways to do that
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in a consistent way and make it clear it is not just a one off thing. it is actually a core part of your strategy and one of your top priorities. i also encourage all the states -- i've great respect for amazon. for bezos has been a friend 25 years and has been an investor. i also would encourage governors and mayors to focus time on luring headquarters and factories from existing companies and on birthing new companies. if half of the money that has 200 35t on the table by communities and half of the energy that went into making a bid to get amazon's second headquarters went into the startup sector in each of those communities, they may create the next amazon. to take a- you have shot at it. photo ops are coming out.
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it is more immediate than the planting that happens with startups. in this third wave, i do believe it is not the big iconic companies. thousands of employees, tens of thousands -- the partnership aspect is important. the expertise, not just on the coast. it is the policy, regulatory issues are more important than they have been in the last 20 years. can you win the battle around talent? can you win the battle around capital and figure out ways to focus on the celebration and on the collaboration and best ways to get to do that? >> thank you governor and thank you for your leadership on teaching our kids to code. what great closing comments thereby steve case. i want our governors and everyone in the audience to know that as you consider fostering entrepreneur ship i encourage you to read the nga center for best practices, economic
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opportunities division, and that will be released in the coming weeks. i want to give a special thanks to governor cooper for cochairing this committee with me and i want to thank steve for coming out this early sunday morning and sharing your knowledge and wisdom. to be here.nor thank you very much. >> ladies and gentlemen, we will now take a 10 minute break. ♪ >> the governors breaking here after their discussion on innovation. yesterday sessions and today are available on or you can listen on our radio app. the next session coming up in 10 minutes will focus on digital skills. globald of google's economic opportunities program
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will talk about workforce training and suggest ways governors can use new opportunities created by technology to equip their states and's workforces and respond to today's economic challenges. until then, some of this session on the u.s.-mexico trade agreement, leading off with larry kudlow, director of the white house national economics council. >> thanks. it is quite true. i knew i do not really look at, my wife -- first presbyterian church. my marriage license. so we can talk about anything. i want to take a few moments, if you will, and walk through and outline president trump's trade mentionnd i do want to the usmca, which we will discuss. i will not talk china at the
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beginning, but any questions you have on china i will be happy to try to answer as the negotiations continue. beginning, but any questions you let me begin with this. -- president's view on trade free, fair, and reciprocal. free, fair, and reciprocal. many of his critics, some including my conservative friends, have argued that he is a protectionist. i do not believe that to be the case. trader,ue i am the free but he and i have had long talks about this and i will come up with the phrase free trade and reciprocal. i wrote just before the g7 last -- which ianada collaborated on with president trump -- his goal ultimately tariffs,road is zero
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zero nontariff barriers, and zero subsidies. that is the long-range goal. is the goal to which i subscribe. that would give us maximum freedom. it would reward competitiveness. that would unleash america's export sales. we have a strong economy. i am proud of that. andre the most competitive recent ratings of international organizations have put us back at the number one spot. open your doors. break down your barriers. give us a chance. is where i say the three zeros. overnight, get there but it is a goal, a useful goal, and we are making progress. ,egarding the issue of tariffs i know it is more controversial. i will say this.
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president trump has taught me tariffs are a negotiating tool. they are part of his quiver. in particular, i want to note on china, where we have probably been the toughest, no president, republican or democrat, has stayed on china's case the way we have and practically using tariffs to do so in great effect. democrats and republicans, i'm not making a partisan statement. it can be used as a negotiating tool and i think it has. the key point is breaking down ,arriers and giving americans giving our people -- give our , autoworkers,ers
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manufacturers -- give our new economy, intellectual property rights protection, digital production, financial services protection, give us an opportunity to show you how good we are and please take down your barriers. that is our basic point of view. is a trump phrase. argue that america first does not believe -- does not mean america alone. america first can coexist. we are not just america alone. , right now,ill note we have put together an excellent trade deal in my opinion and my colleagues the ministers from canada and mexico
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will be here in a moment. the usmca is a strong deal. we are negotiating with china. we are negotiating with europe. we are negotiating withwe are n. we have completed a good trade agreement with south korea. that is why i emphasize the fact that it is america first but not america alone. we are engaged globally. are open for business globally and we are engaged globally. make one final -- let me make one final point. our intent has always been to create trade deals in america's interest. old economy, new economy, all the various sectors of our economy, in a bipartisan way. wishay not agree and may to push back and i appreciate that and i look forward to questions. believe thate bilateral trade negotiation,
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bilateral trade negotiation, is better and more efficient than multilateral. we do not want a lowest common denominator with processes that do not favor the u.s. and we do so because we want to help every sector of the economy. hence the notion that we are bipartisan. i think as we get into it with my colleagues on the panel you how much we have tried to have a bipartisan deal. review. quick the way we calculated -- usa in newing $62 billion auto investment in the united states. $62 billion. 80,000 generate roughly
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to 100,000 new jobs. that, butsagree with areso add a bunch of us negotiating with auto manufacturers in europe who not only expect to come in and accommodate the new ground rules for usmca but also do more to actually bring in more. we are proud of that. content, 75%,s 40% to 45% of audio -- of auto content will be made by workers earning $16 an hour. those are record numbers by far. union activity and collective-bargaining activity, particularly to our friends in the south in mexico, we made new ground. we broke new ground in every area to promote collective
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andaining and their rights to hold the mexican government and international labor standards as well as international environmental standards. we have opened up dairy farming issues. we've opened up financial services, digital services. most particularly, we have the strongest protections written into this for intellectual property, which is to say innovation and inventiveness and , whichity for all of us is the great strength of the american economy. innovation. creativity. that is what makes us great. ip stuff, copyrights, laws yes piracy, biological pharmaceutical, we have gone the whole nine yards. all three countries. energy has been protected with respect to various decisions and
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in the room -- in the review process we compromised heavily. a six review every six years and there is a 16 year cap on the whole project. i am proud of that. bob lighthizer, who could not make it this morning, my colleague, i think he has written a template for the new trade deals. if you'll pardon me, i do want to note one key point here. i do not want to lose this. one reason president trump wants bilateral deals, rather than these large multilateral deals, as he believes bilateral deals are better for american interests. >> good morning. welcome back. take your seats. it gives me pleasure to have the opportunity to introduce a good friend and colleague who is going to be our host this summer in the beautiful state of utah
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for our summer nga contactors -- conference in salt lake city. him.e join me in welcoming >> i am honored to be here at the nga conference. i appreciate those who put it on and for the governors to share our best practices and learn from each other. forgo back better governors having been here. 8.5 years ago, utah had the privilege to host the summer conference of the national governors association in salt lake city. we had a great time. we were grateful to have that opportunity, and i think the governors had a good time too. that is recognized as one of the best summer conferences we have ever had in nga history. i do not believe any governors
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other than myself that we have had here today have had the opportunity. a lot of new governors have come along. we have the opportunity again here this summer starting on july 24 to host the nga again. we invite people to come. the governors, families, staff members. 24th of july will be a reception night for a barbecue and rodeo, one of the best rodeos in america in salt lake city. we will finish on the 26 with a dinner and a concert and we will have atypical nga meetings where we will learn things and study hard and have an opportunity to have fun at the same time. it will be a productive time for one and all. we will be staying at the grand american hotel. it is a five-star hotel built during the olympics, for the olympics. it is a wonderful facility you will enjoy.
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we are asking people to bring your spouses, your family. lots of activities for spouses and we will have activities for children, whether it be toddlers of two teenagers. -- whether it be toddlers up to teenagers. our international airport is being remodeled, rebuilt. it will be the most modern new airport in america and you will be able to see some of that construction finish up next year. you will see the opportunities and convenience commenting utah and salt lake city international airport. we will have exciting entertainment. the mormon tabernacle choir will do a special concert one evening on a patriotic concert which we have done before. the governors enjoyed it. we will have the las vegas show. the first family of
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entertainment from utah, the osborne family, will put on their las vegas concert. for those who have not been to utah before, it is a great opportunity to come. if you have the opportunity to spend a couple days, we have five national parks, 43 state parks. our national parks are becoming international. the majority people who come to utah are foreigners who come and have heard about the great venues we have in the state of utah. golfing, hiking, fishing, traveling to our national parks or state parks, enjoying the leisurely time of the summer and the rocky mountains of utah. you will have a great time. we invite you to come. we have a booth outside to get you more information about this opportunity. we look forward to hosting all of you and your family on july 24 to july 26 in salt lake city, utah at the nga summer conference.
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thank you. ♪ >> i am governor gary herbert. i would like to invite you and your family to the national governors association summer meeting in beautiful salt lake city this coming july. salt lake city is quickly becoming crossroads of the world. solid international airport is located within 15 minutes of the vibrant heart of our city. utah has a wealth of human talent and capital driving our innovation and economic growth. companiesown tech exemplify an exciting generation of entrepreneurs and businesses and services. the nga summer meeting allows us to come together and have discussions about common challenges we face and share valuable lessons. it is always an honor and a privilege to meet with and learn from our nation's governors. >> we will have plenty of fun
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activities scheduled for your spouses, children and the most family-friendly state in the nation. we also invite you to explore and learn more about your own unique stories by researching your family history. utah is the epicenter of exciting family history efforts. >> come to utah. enjoy salt lake city. we look forward to hosting you this summer. ♪ thank you, very much. thank you for hosting us. it is now my pleasure to ,ntroduce our next presenter who is the vice president of growth with google. globalrsees google's economic opportunity programs, which includes a fork is -- a focus on workforce training, small business growth, and entrepreneurship.
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she and her team will be in my state of maryland this week to bring their growth with google initiative to maryland's libraries. as an executive at one of the world's most exciting companies, she has had the opportunity to bring google's innovation to global stages like the world cup and to small businesses who are looking to leverage the internet to find new markets to grow. lisa has been with google since 2010 and was previously with procter & gamble as well as other startups. she is here to share with us how we as governors can help our workers and businesses succeed in the digital economy. let's give a warm nga welcome. [applause] thank you so much. good morning, everybody. bullock,bolick --
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thank you for the invitation. governor hogan, we are excited about coming to maryland. it is an honor for me to be here to talk a little bit about this program we call grow with google. i created this program and it has been my life for the last few years. we are hopeful that by sharing it with you today we can help you in this journey of expanding economic opportunity for everyone in your communities. that is partly because these are actually our communities. many people think of google as a silicon valley company, but actually we announced this month a $13 billion investment across the u.s., which means we will have offices or data centers and 24 of your states. hail from 11,000 home towns across this country. everywhere,sers are
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everywhere in these united states. that is the reason we want to ensure that we are responsible citizens and partners to all of you, so that we can together make sure the opportunities created by technology are truly available for everyone, no matter where they live or what kind of level of education they have. where did we start on this journey? we started by going out into your communities. we spent a year traveling around the country and talking with people on the ground, civic leaders, nonprofits who were helping folks, mostly adult learners. we went to michigan, to tennessee, montana. we heard from small business owners and from everyday people. through that, we created this program we are calling grow with google. before i explain that, i want to share a video with you about the folks we met on our journey.
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these guys are from a small town in kentucky. can we play the video? >> -- is a special place. i have been blessed to be able to live in the mountains. that is what home is about. >> for over 100 years, cole has been the source of the economy. we saw almost a complete shutdown of our industry. it just went away. here, weal businessman cannot accept that we could not do something else. >> we wanted to find something so people could stay here in a livinga and earn that was equivalent to what they earned in the mining industries so we started looking. came when wet learned about kobe.
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>> i grew up in the area. i moved away because there was no tech opportunities. i took a call from my cousin rusty and he asked me can you miner how to code? >> our plan was to try to build a software develop and company right here in the mountains. when we first started, the former coal miners knew nothing about this stuff. all the basics on how you talk with a computer, we used youtube to fill in the rest. >> we are going to take a look at -- >> they started to get excited that they can work through problems. >> before we knew it, they were talking in code. >> now they are making websites, apps, and attracting clients
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across the country. >> i am hoping these original tend to be the ones that help train other -- another 10 or another 20 or another hundred. maybe this will one day make it where our kids are able to stay here. ♪ >> i have been lucky enough to spend a bunch of time with len and rusty and i can tell you they are special people. i can also tell you from our travels around the country that they are not alone. when i go around this country, when i hear from people like them and from all the different immunities where we go, there is a real optimism. people who believe in the communities, the small businesses, and the people all around them and the potential they have. that is why we created grow with google, to bring the best of google's tools and trainings
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into people's hands, to help them grow their skills, careers, or businesses. today i will tell you about three of the places we are focused. the first is preparing americans for jobs in high-growth fields. we take tech-support as our first journey in this area. a wayt about creating into this field without a college degree for you do not even eat a high school degree. tech-support is more needed than a ever. they set up your devices, fix them when they break, connect them to the network. you do not need a college degree for this work. everyone needs a tech-support person. small businesses, big businesses, local governments. there are lots of jobs. there are 160 thousand unfilled jobs -- 150 thousand unfilled jobs in the tech-support field in the u.s.. we got our act together and
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created a program to teach people how to do this. you can do it part-time. this. no prereqs required, you can do it part-time. 10 to 15 hours a week, you will finish in about eight months. more importantly we created an finishentire consortium of empls across the country ready to hire people who are in this certificate. as you can see here, it's a mix. people like bank of america and google, we are excited to be hiring these folks. our goal is to equip these americans with this certificate and get them right into good jobs. the median level income for entry-level jobs in tech-support is $62,000 per year and we are qualifying people for these jobs with this program. we have 50,000 students already enrolled. half of these people have no associates or college degree.
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we have 2.5 times the completion of most online courses. and guess what? we are reaching underrepresented populations in tech. 69% of our learners are women, minorities, or veterans. we are really reaching folks who need and want this kind of work and more than half the people say it has already gotten them onto a better career path than they were on. we are excited about this program and we are hoped -- we hope it is the first of many that we can make into high-growth, high-paying tech careers. we also know that a tech career is not for everyone we want to tell you about how we are bringing basic digital skills to everyone. it doesn't matter what kind of job you want to get today. they will want you to know how to write a document, use a spreadsheet, be proficient with female. guess what? of 18 tohalf 25-year-olds say that their education today is preparing
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them for these types of jobs. so, our secondary focus is , partnering with communities and organizations to bring even the most basic digital skills to everyone. we needed to figure out a way to do this. in our travels around the astounded byere the roles that libraries continue to play in these communities. personally i'm a huge library fan, it's one of my special places. what i didn't know before i began this journey was how much of a role they are playing everywhere. did you know that 96% of americans live within a reasonable range of a library? that's a higher percent then starbucks or mcdonald's. they are playing critical roles, teaching esl, and more importantly they have become our nations defective job centers. i have been in them all over the country and i have watched people get help or writing a
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resume, practice interviewing skills, using the internet to look for a job. guess what? 90 percent of our libraries are already teaching basic digital skills. so, that is what we are doing. recently we announced we would go to all 50 states, to all the libraries. we will bring digital skills to help them get online and figure out how to attract customers using the internet. help people with the basics, making a spreadsheet or a presentation. guess what? we are1,000 hometowns talking about? we are taking them with us, bringing google people back to their hometowns to work one-on-one with these individuals in doing this training. that it's not just individuals, we are training the trainers, making sure that the librarians know about all the tools we have to offer. we are really working with the folks in these communities to have a long-lasting impact.
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we were recently in erie pennsylvania. i have some family from the area . we could see that the public library that was a place that was really a part of that community's renewal. that along with the governor's pa smart initiative, like in connecticut, working with governor lamont and his team. you can seescreen some of the places we are going and going next. but nobody knows your state that are than you guys and we want to work with all of you so that when we come to your state we come to the right communities and we work with the right partners to continue working on these programs long after we leave. the first two areas, getting people into good paying high-growth careers and making sure that everyone has the basic digital skills that they need to get a job. the last place is my personal favorite, how are we helping
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people actually get jobs? one into americans start their job search on google. it's the first place that they go. we have taken the responsibility super seriously and in the past year we have made the experience work the way that people wanted to work. systems still survive through pay, to contract work. by making this experience work better, in less than one year we have connected 100 million people with jobs. we are also fun and populations that have unique needs. maybe you saw a super bowl commercial where we made it possible for military service in theirembers to type activation code and see jobs that would be relevant to them because they use similar skills to the ones they learned in the military. we have been very excited about that. today am going to give you a sneak preview of what's coming, something we are incredibly excited about.
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showing jobs is great, but there is so much more work to be done. 40% of americans can't afford basic needs, but if you ask americans 46% of a -- employers say they can't find americans with the right skills. how do we actually close the skills gap? it's called pathways. pathways shows people not only the in demand jobs in the area, it actually shows you the training in the area available to qualify you for those jobs. right? this is always a catch. people can see jobs they might want, they need to know how to get all of five for them in many cases. so this is hard stuff, right? ofhave an incredible list job listings. we happen to be pretty good at the information stuff.
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but to make is useful to your constituents we actually need your help, we need to know which training in the area is the best. by working with your team and the employers in the area, we need to see the ones that we have had the most success with. showing people the jobs available to them. the training. and we want to show how employers write the training programs. i would also like to show placement rates coming out of the training program to make sure that there is information that we will show people that is useful and accurate. we need your help and we want to partner with each and every one of you. at the beginning of this journey we were in the pilot phase with the state of virginia and indiana. we welcome many more. .e can't do this journey alone this is hard, you has done me to know this, but the data is very unstructured, not everywhere, and not to find and we want to
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make sure that the people who need the info can find it. in closing i want to invite you all to please the people about the i.t. support program. please join us when we come to the state and make sure we come to the right communities in your state. make it a reality for folks by helping us understand who to work within your office to get the most accurate and useful information. in the meantime, all of this information, everything we do on grow with google can be found on our website. we really want to work with you guys and make this stuff that incredibly impactful. no questions, if i'm not mistaken? yes, chairman? >> thank you for being here.
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also, thank you for bringing grow with google to bozeman, montana. it was fabulous to see your whole team there. more than just your team, the excitement, literally hundreds of people traveling from all over. i was not adequately familiar with the i.t. support certificate, which can be an amazing opportunity for people across the country. to get into it, whether it's base costs for individuals who want to get that certificate. starting at two years ago we took from our university system trackid -- i'm going to graduates and find out what they ,re making a year or two after students as consumers saying here's what my opportunities are
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here. what health would you like from governors, labor commissioners, and universities? >> i already got your first question. >> how do i join this if i'm looking for a job. us to be available for everyone, so we put it online. it's all talk i google employees, engineers. take it by yourself, online, at your own pace. as i said, 10 to 15 hours per week, we assume it's a full-time job as you are learning. in sevenyou can do it states already. we hope to be at 100 by the end of the year. those who want to be supported by a proctor instructor, that is
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also an option. we have been working with national partners, like goodwill, the nation's leading workforce development provider. goodwill all over the country, we are also working with the uso for a transitioning military personnel and spousal is to do it on your own, community college, or one of our partners. whatever works best for you. we don't make any money at all, but because we had to put it on a platform, we put it on course era. $49 a month, we have tons of scholarships available. through goodwill, for example, you don't pay. through uso you also don't pay. we make it easy. the intent is for it to be perfectly affordable for anyone. sect -- was your second second question.
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can point to the workforce development folks in your area to no more, that's a great first start. this work is community by community and as you can imagine, it's your expertise, not ours. once we have the information, you know which are the best programs. you know which employers would have a point of view on what's best. development is the best first entree with community colleges being such an important part of job training. it's a great place for us to start. >> lisa, thank you for being here. i enjoyed the map you have of where you have been where you are going. we would love for you to come.
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>> if you commit, we will be there. >> you can count on it, thank you. >> i haven't been asked this before. >> i will tell you where it is on the side. >> we should figure something out. does this feel like it will help the folks in your communities? thanks for giving us a few minutes to talk to us today. >> the national governors association announces an enormous amount of services to governors, cabinet secretaries and staff. it's important to know that while we do major meetings to get governors together and it's very important, this is so much more. >> what we do is the politics
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are over. now let's work on letting our citizens.ove the >> i tell governors that we may not know the answer but we can find the people who do know the answer. small.up is darned we have maybe one state for territory. the ability of the nga for convenient functions for governors to get together and share best practices and share ideas is unrivaled. there is no other avenue to do that. the beautiful thing is you really can't tell who the republicans and the democrats are. if i had a scorecard with new governors, i wouldn't have any idea. >> we are all here to get our agenda and initiatives going. >> i love picking brains on what's happening in other
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states. coming up with best practices >> fellow governors are essentially immobile think tank. able to call another governors gold. without the nga, i wouldn't have a relationship with the other governors that i have today. collect one of the governors i had a conversation with was governor hickenlooper. he turned me on to someone who might be a good fit for my cabinet. >> not only is it great for the governors to get together and share input and advice, but for the staff to share best practices in the different states. have a jew deal with this problem for that issue? they think it's just the governors getting together. but it's just as valuable. >> it's like making life multi-planetary. >> one of the things they do very well is bringing people
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together, people who work for governors and people who work in the private sector. >> the difference with nga is that the governors staff would attend. in some ways the closest you'll get to the governor, i would think that sometimes staff is better than the governor himself. about public policies. >> broadband has become electricity of the 21st century. >> sometimes i spend the afternoon with people who have been lined up in the afternoon on the nga and if we have to do setting up those relationships in setting up those kinds of meetings would have been prohibitive. having a national governors changesion allows for
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over time. >> we all have a copy. >> we are able to share the activities, problems, programs offered to states. >> we have been very fortunate to have had for example the president of ghana, the prime minister of certain places, like australia and canada. what governors find is that they learn from those countries, also developing relationships. >> a lot of countries want to do business with the u.s., but they don't know how to do it. we want to create a clearing house with nga global the governments from other places want to conduct trade with when they come to the u.s. and come and get pointed in the right direction. >> this is an opportunity in one place to get access to a lot of important people that make help
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you create more jobs in your state. >> it's really college for governors offering continuing educational the time, where you can learn from your classmates, learn from your professors, and be a better governor. >> good morning. dakota governor of north and i'm grateful to have the opportunity to lead the panel. thank you to that lady who was clapping for me. one person clapping is fantastic . thank you, catherine. i want to say to everybody here today and in the audience, thank you for being here and thank you for supporting nga, creating the platform and opportunity for the governors to come together, learn from each other in advance thatolicies and practices make our country stronger. thank you to all of you and thank you to the panelists and a second. we had an awesome panel. this could be the greatest panel ever assembled related to
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building better communities. matter that it may be the first one, it will be the greatest and most awesome ever. one of the biggest factors to growth is workforce, first time in history of the country where we have more people in the looking -- more jobs available then people looking for jobs. it's an inversion and likely to work for another decade. there are a lot of elements and we often talk about education and workforce training. is that 40 ornow 50 years ago they often picked the community first, the job second. building these healthy vibrant
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communities is key. talking about it, one of the is makinging that sure they have gotten low , managingaxes communities, because governors tell a localnce to school board or city commission exactly how to do their business. often coming into the dot or others who might distort how they are built. the end of world war ii it's a pattern of development in the community that centers around automobiles, not people, leading to other secondary costs , one fourth of the $4 trillion relating to the fact that americans just walk less than other cultures because of how we designed our city -- cities. to see the opportunity
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some experts do that. we are going to get in and do that, talk about that. this is an opportunity for everybody to get smart on smart. here,o great panelists catherine has had a fantastic theer and we could spend rest of the panel reading all about it. we won't do that, but named multiple times to the list of the most powerful women in .usiness, top 50 working moms it goes on and on, and ,pportunity for team members voted one of the top in the country. the other thing is that when you get to the top of the 100,000
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, it's arganization four-year term. ofhy is within a month or so being held back. she's going to go crazy on the panel and share everything in her career, which has been great. philip is with itron, who literally helps to build smart cities and has background in technologies. kathy, take it away. talk a little bit about the practice.
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>> obviously you come from a state that allows us to assess the digital divide in your state. i stepped back and think about their favorite words and that there's an app for that. thisre looking for relentless focus. this 2.5 quintillion pieces of data per day, but only 4.5% are analyzed. if you think about the power of that, with data being the new
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oil, thinking about smart states, smart cities, if you don't live in a smart nation, you will soon. one of the other things as around connectivity. it's all new technology, ai, social, mobile, block chain, and as governors we can really step back and advise you on how to actually build a strategy that makes an impact. they can even help the cities who are working hard on these smart city initiatives. talking about that and a little bit, there's a lot going on at the city level and at the state level it something that we certainly look forward to as well. >> thank you. 100 countries, with best practices there, thank you for
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being with us. >> focusing on the critical infrastructure, what does that mean? 200 million electric gas and water meters. sensors involved in smart communities, we have run a number of energy efficiency programs and connected buildings through pricing and energy. 5% to 7% of electricity is lost in the distribution system. 1% of natural gas. 30% of water that is put into the distribution system is lost before it gets down to the consumer. in california the largest use of electricity is the pumping and p are a vocation of water. 20% is used in the delivery of water.
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areas we think about with smart communities is more efficient, sustainable, and reliable communities. programs like connected street lighting. building around roads, 30% of the air quality problems downtown, its cars circling looking for parking and there are innovations once you have more information about how cities operate. and then the fact that they do quite a lot the rest of the into it -- places like paris, copenhagen, developing countries, keeping our
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and focusingimple on economics. inhave done a lot of work major metropolitan areas and the very broad coverage in water space, with over 55,000 water utilities that are municipalities. interestingat have challenges, i looked on their website. lower 48. 5% of the economicto focus on and provide users with better information about how they are using the resources. >> i want to share a thesis then i welcome back with a question, technology at every job, every company, every industry.
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with no competition that is a rapid cycle of innovation. >> in places with intervention and regulation, whether it is in , subsidies and regulation, they have been insulated a bit from this. i would put government in that category, along with health care and education as being one of the categories that has more disruption ahead of it than has already been achieved. one of the things we know with technology, with all the sensor technology, with everyone carrying a supercomputer in their pocket, is pervasive ,obility to track not just us but the activities that we do. we have the opportunity to have this internet of things that involves talking about and
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automatically collecting data that is of higher quality and lower cost than human collected data. when we have human collected data, asking doctors and nurses to for their hands on a keyboard , we are asking for high-cost versus thew-quality things you were talking about, automatically collected. maybe i will kick it back to kathy. talk a little bit about what the internet of things can mean about the advances of automatically collected data and how you analyze that data. 30% of the water is not even getting there. you are figuring it out automatically. what do you do with these problems? >> just a few things to talk about there, like efficiency, informingways to curb consumers on the impact and using things like electricity, gas, and water services. our ability to both use sensory data to pinpoint where the
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problems occur and also better interact with citizens in ways ways, i think is important. yesterday, we had a session talking about infrastructure funding. it is an overwhelming problem. what i think is one of the highest values of this data is being able to intelligently target where the most acute problems are and allowing them to prior tories -- prioritize infrastructure in a way that we could not before. we are relying on human expertise to determine how capital is allocated. now we have the opportunity to, with more analytics, to be able to look at specific problems, some of them, not that intuitive. places that we can target investment to improve. back to the basics of your industry. where we are in our country, in terms of having humans collect meter data versus it being
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automatically corrected. -- collected. are -- in the u.s., we are at 60-70% penetration for automatic collection of this information. there are still a number of variables. still opportunity for growth for us. feelingioned that people out from the meter reading. those programs, we have worked with our utilities were retraining that staff in order to focus on where are we having reliability problems. where can we do a better job at restoration. there are all kinds of tasks that were done reactively that are now being done more proactively because staff has been retrained and retargeted to really think about ways to create better outcomes. repurposed to a higher value
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activity. >> yes. >> you talked about jobs being disrupted, i will add we have now 7.3 million jobs unfilled in the u.s.. gap,ere is a huge skills we are looking at tech savvy, digital academies. i think it starts with education. education drives that are jobs, better health care, better living conditions. is not a skill set smart city, smart state type issue per se, it is a huge issue when you have access issues to good education and you ultimately have jobs that we cannot fill. one of the things we have been roundtablee business -- here areollege can say the skills that are most wanted to be hired. and now we have to work with universities. this whole ecosystem, to make
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sure we get more skills matching. today, especially as you say, enroll areas, the production is that 68 percent of the population will live in cities by 2050. where will that leave the rural areas? we can put smart infrastructure. if everyone will move to the cities and the cities have failing infrastructure, many of them as we know, that is a topic we could spend a whole day on. it is a related issue to how we think about the work of tomorrow and the skills. 7.3 million, a year ago, it was only 5.8 million. it is one of the things we worry about a lot. >> we will come back to rural but i know that you guys have practiced with your public sector practice are touching every state. collecting a lot of data. tell us a little bit about what they are doing on the front edge of machine learning and
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artificial intelligence. how you are applying that data and how you're helping communities to be smarter with the data they have. >> one of the challenges is what to do. i hear we are drowning in data. how can you, again, have people who are -- have higher analytic skills. i have a daughter in college, i told her no matter what you do, you're taking analytics. it is a higher level of statistics from when we went to school per g followed my advice. one thing she listened to -- she followed my advice. one thing she listened to. i don't know how many states have a data officer and how you need to elevate that position in be aorganizations to really important cog. you can help drive data modernization programs. you can help drive privacy issues, cyber issues. that is a lot of what we get
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called in to do. companies who are living with the risk, as you modernize your data governance, they are dealing with the risk of this balance between building out a strategy and plan that is based on connectivity. and mobility and also protecting data. is -- transparency, which citizens are all becoming data scientists themselves. so, again, how do you strike that balance? a lot of it is the governance around data and how that sets up funding. the governor is ready to elevate the chief data officer and help them with the agencies. because, again, forget the connectivity outside of your world. it is the connectivity within your world that will be important as we go forward with analyzing the data and protecting it as well as being transparent.
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cities, we dide not talk about what some of the cities are doing. chicago, boston, new york, over in europe, there are cities that are basically building apps. nocera's -- -- boy tonos aires has built an app find potholes. northeast, i would feel better about where i live if i was able to report potholes and take a picture. -- a conference a plan to deal with this. it is complex but you need -- comprehensive plan to deal with this. it is complex. you need to get all of the agencies working symphonic lee on this -- on these issues.
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this is something you have to invest in and have to do. when youyou nodding talked about the customer experience. you must have millions of customers across all of these thousands of communities. >> we do. one of the great challenges that our customers generally are feeling is that you get more information about the status of your flights then you do about the municipal services that you receive. in particular the commodities you are consuming. there is a lot of pressure for much more timely and accurate information. we are working closely with our customers on how they can better provide that information. one of the keys to that is to embrace open standards to unlock innovation and allow players to come in and think of new ways to present this information. i think one of the things that
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stifles innovation is that cities or governments or utilities can come up with the best answers. we need to create an environment and ecosystem that allows other people to develop ideas. there is incredible wealth and innovation out there that we can tap into. maybe to follow up on something that cap he said, i actually agree that we need to think about smart communities and how we are going to embrace this kind of technology. we also have to look for early lens and very specific projects that have quick payback that are anchored for this sort of system. there is a project for green lamps and leds which are 70% more energy efficient. to use that as an opportunity to hang the network infrastructure
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that felt a canopy that allows for things like air quality, traffic sensing, public safety, all kinds of other applications that are -- we are starting to take a look at. it is not what is best in infrastructure and hope a business problem comes our way. let's manage our risk by solving a specific problem, about energy efficiency, about crime, and then build with the technology we put in place, build outward from that. as opposed to oil the ocean, which can be intimating. >> one of the things we get asked is how do i pay for this, how do i fund this? there is four dollars of return on that. if you think about public, private partnerships, you think about the first department of transportation grants in columbus, ohio. who won the smart cities challenge. that was a grant of 40 million, matched by philanthropic funds. now you have 150 million to go figure out what a smart city
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might look like. this can be done. think -- for two years, we have been talking about the dawn of the industrial revolution. we need the public and private sector part of this. as we always say on infrastructure, we say here too because this is one element of infrastructure. it entails into all of the other things we have been talking about. education, clean water, energy, some cities have proven the return is there. the return is there. >> you talk about infrastructure, my senses when there is a conversation in our country about infrastructure, they think about roads and bridges, as opposed to digital infrastructure which could lead to hundreds of solutions to address all kinds of problems. with your sense of working in local and state governments, is dialogue shifting, our budgets starting to follow the emperor
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structure we need for the digital age? or are we still stuck? >> i think it is still a combination of both. you have finite you choose too allocate that capital amongst the initiatives when you have people saying traffic is untenable. there is no parking. you are taking a big hit to the economy. there is not energy efficiency. so, i think there is a little bit of a shift. probably not as fast as i thought it was going to happen. i thought the benefit was going to demand it. i think what has happened is there has been a little less in the news given the broader infrastructure of the bridges and tunnels. a narrative that plays much better in this town then the digital highways. >> before we get to digital, i
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would love to discuss infrastructure and include electricity gaps, things that make us a first world country. when it is disrupted, it is terrible for our society. and economically wasteful. what i have seen is that with a greater focus on resiliency, we have seen a greater willingness for state utility to -- commission to improve modernization efforts. we have a term it is need for water infrastructure. which is where this 30% of water leaking comes out. in the gaps and water space, we have seen strong investments. they have come with digital infrastructure. when we talk about a public, private collaboration, i would encourage all of you to think about significant investments that your utility and legislators have approved. to getey have now built digital infrastructure that you might be able to share or
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piggyback on top of. rather than duplicate italy -- duplicatively -- to's not rebuild duplicate -- duplicative infrastructure. let's focus on how we get more value out of the digital investment we have already made. >> both of you mention parking or the cost of people circling to find parking. we have multiple ridesharing companies that have been highly successful. there will be alder -- other alternatives to come, whether it is package delivery. we will end up with consumption as 1, 2, or three automobiles. when i talk about america loving automobiles, building cities for cars, we have been focusing on the parking of those cars. there is 10-12 spots and we have thet of vehicles suggesting
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size of surface parking in america is larger than connecticut. from all of the land the parking of america is greater than the value of all of the automobiles in america. the thing we love more than cars is free parking. governors staff wants, there is a 700 p -- 750 page article on free parking. it details the economic costs of this. governors staff wants, there is a 700 smart cit. in the future, in 10 years, what do we do with the parking spaces that we may not need if we have more cooperative consumption. fixedll that be recast to use with the appropriately functioning use of space? you guys are both doing work overseas. was 55 around d.c., it degrees. i saw two bikers taking their
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time. if you are in copenhagen are amsterdam, -- or amsterdam, you would see many commuters. people say i'm not going to ride a bike. powered bikes like you saw the german governor writing -- writing -- riding. there are scooter advancements that are going to get there. we have a generation of an age of decision-makers that spent their whole lives with cars. my kids were dragged around in car seats. there generation does not want to drag their kids around in car seats. how does smart cities -- how do smart cities support this transition? >> this is something to be thought out in a master plan. i call it a master plan around smart cities and smart nations. there is a lot of data out there
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that would say we maybe overestimate 10 years we will be driving cars. i think there is underestimation in the short-term of how millennials that are joining our ranks today as citizens of taxes are going to want their mobility and science. the fact that we have an app that can tell you where a pothole is on a road. where a policeman is on the road or whether there is something -- an animal on the side of the road, guess who is giving that data in, the citizens. it is the person who is actually on the road. given the vastness of this issue and whether we really think autonomous vehicles and the , theal aspects of that federal government has as well.
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i think it is a great issue to continue to talk about, governor. i don't think it will happen as quickly as you do. onhink that it will depend the digital natives that are coming into the workforce today. if there is a shift in urbanization, 65% living in they adopt the culture. ? i still think we will be driving in cars in 10 years. >> in order to be clear, i do to double. -- do too. commercial one death, one person in nine years in the u.s.. we kill about 40,000 people a year on the roads. maybeutonomous assists, we can cut that in half in 10 years. we have an opportunity to improve that and improve the economics of our cities. because of the high costs
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associated. --all want families to have if we can lower their transportation costs, that is a good thing. this, way i think about we can argue about adoption rates, what are the no regrets investments we need to make today for the best future to unfold for us? kathy pointed out the power of waves, things that provide us with a connected view of what is going on inside a city is going to be critical for that. it is likely electric vehicles that will be involved in this revolution. we focus on charging infrastructure, ways of dealing with discreetly measuring who is using what and where there -- they are going. that unlocks the possibilities for the adoption rate to work itself out. that is important as a driver of an electric vehicle.
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yesterday, i went into a garage and there were 10 charges. there were no other cars and none of the 10 work. -- worked. [laughter] it was a company that had free charging here. -- said free charging here. in that we believer are going to pilot some of the pieces of our organization to make sure you're at the forefront of what that means for us and are highly mobile, highly diverse workforce. that is something i think, if you are not all investing in this through whether it is partnering with companies like the salyer companies -- cellular companies. i know at&t is doing a lot of work. this is going to be key because there is massive, quantitive computing and things that will be required if we will get autonomous driving and the things we are talking about. >> we want to open it up to questions forum -- from
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governors. while they are thinking about what they want to ask, we will touch on cyber. when we have these pervasive networks that are tracking different activities, some people might be feeling there is a big brother element to that. what do we do to make sure that in an age of state-sponsored, cyber attacks, that we are hitting everyone about states everyday, hitting our municipalities every day. talk a little bit about what your firm should do and how you think. >> we have put hundreds of millions of devices out on the field. they have been tested by our u.s. dod lab. with active penetration testing. you, as governors have asked your utility commissioners to be very thoughtful about setting very high standards for critical infrastructure. and we are regulated in a
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rigorous way in order to ensure the safety and security of the equipment we are putting out in the field. one can never rest there. it requires ongoing vigilance. work.e done extensive you mentioned the second issue beyond the cyber security which is also critically important to maintain the confidence of citizens, that this information is being used for the proper purposes. we have also done a lot of work on how it is to be appropriately -- that we properly checked customer information. protect customer information. >> the question is are we going to have 50 different privacy laws that companies and others will have to abide by? we have one national type of privacy type of thing? this whole collection -- data collection and privacy, i have a daughter who is graduate from college, when she got her. --
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driver's license, she posted on instagram. i asked do you realize there is personally identical -- identifiable information? cyber is something that is never going to go away. we do a lot of work for governments. for the state. this is something that, as you look at any kind of cyber acceleration plan, you can throw all of the money at it you want but you have an inventory and prioritize what is the most sensitive data. focus your efforts there first. our advices is to prioritize inventory, make sure you have secure, vigilant resilience. >> just a quick question, if you look at, you talk about data. we have more and more of it.
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the key is to manage it. algorithms that construct our purpose. the concern i have and i wonder do you share, if so, what ideas do you have that we should be thinking of as a nation relates to the energy grid itself. the cybersecurity of it, leaving that aside, the sheer reliability of it. you think about the sources of it now and the ways in which those sources are fed into the grid, they are disruptive will. they are diverse in ways they were not historically. which is fantastic. and geologicalm disruption in the form of an earthquake, there are ways they can be disrupted in ways that are new. what concerns do you have about ions wouldhat suggest you make? the vortex accreted a tremendous amount of disruption and concern
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in places that have not had concern in idling plants. that was 72 hours. what if it was 7-10 days. i want your thoughts on this as a concern and what suggestions would you make to the department of energy and the federal government and to us as governors and what we should be thinking about to get out in front of this. we call it the pool of vortex in north dakota. march would be better. >> there are many levels to this. as we look at a central generation model that is -- the prevalent way that we have delivered energy in the country over the past hundred years, we are now disturbing more of our energy generation in the form of renewables and other techniques. they create greater resiliency
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in the generation portfolio. we do have to be sensitive to high level disruption. the generation and transmission system. we can work at the distribution level. is --ane harvey, houston the city of houston and the houston utility customers are 4.5in reduction outage and million disruptive customers -- disrupted customers, -- this kind of infrastructure allows us to understand what is going on and resolve problems much more quickly. the technology can be very powerful for supporting a more diverse grid of energy sources that are flowing in multiple directions and also allowing us,
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as problems developed, to be able to target areas more effectively. in the case of the polar vortex, by being able to work with customers signaling thermostats and smart homes and buildings in order to adjust demand, in order to doodle -- deal with inevitable disruption. >> we know that workforce and technology is a talent -- challenge both for private and public. particularly in the public, we struggle to get the kind of technology we need. we are able to talk people into doing their public duty and public service for a while. but consequently, governments have to turn to private companies and we get hundreds and hundreds and hundreds of pitches from companies with technology ideas. how to make your city smart. working in a round where we do not have the flex ability or the nimbleness of a private
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company. advice to governors on how to approach technology which we know we need but going at a slower pace and -- in the private sector. -- and the private sector. >> that is an excellent question. to the extent you can elevate chief technology officer's and data officers. i do think that people, especially millennials want to be driven by purpose driven work. be one ofe may not apple, google, netflix tight companies, getting your narrative right -- type of copies, getting your narrative right, this starts at the university level and make sure we are getting the more tech
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savvy population. i think there are ways to do it. with the right narrative about the work that you do at the state level. can make anple impact and a difference. i think it is possible. i don't think, as you brain yourself, i don't think the right narrative is out there -- brand yourself, i don't think the right narrative is out there. there is some rebranding that can be done to fix that. these millennials, they want to be known as tech savvy. they want to be driven on technology jobs. they don't necessarily want to work in government today. i think it is about the narrative and the brand. >> i agree with that. done, and id be appreciate the answer part of it, to provide some of these employment opportunities for the next generation that is coming along. where do we start to get them
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involved in this? is a really good question. we visit 50 million public high school students out there. hard to make an impact. there is 2.3 million teachers. hard to make an impact. there is 150,000 pencils. we launched something called create principles. if they understand how we need to build tech savvy, that is a week -- way to get it. how do you scala, how do you get that impact on our public high school system -- scale it, how do you get that impact on our public high school system? in new york city, -- only 30% of people are viewed as college or career ready. i do think there is things we can do. i think it is and other public-private sector collaboration that has to be done.
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i know we are try to do a lot of things in the cities and states. a lot of of their companies are ash other copies are. companies are. i am not saying there is an easy answer but i am more optimistic on this. >>'s high school too late? do we need to move it back to the -- is high school too late? do we need to move it back to the middle schools. we are seeing problems with graduation. natives, i think they have the skills, even in middle school. if you do it in high school, it is what they want to select to go to college for or community college or technical school. that is why the inventory and skills needed to be hired and messing that up with the comedies that are hiring, i think that happens more -- with the companies that are hiring, i think that happens more in high school.
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i do think high school is where it turns. especially in the inner cities. last question, governor gordon, from wyoming. >> it is exciting to talk about technology. microsoft is putting a new data center in wyoming, next to our biggest town. that data center will use more electricity than our entire city. the question i have is on how you build a capital to build -- to be able to power that infrastructure. it is wonderful we have this technology but at this point, it is accelerating at a very rapid rate without having the concept of how we fund this overtime. >> hire philip. 2008, electricity has declined after the recession and has already recovered. it is just about to cross back
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to where we were in 2008. the ongoing focus on energy efficiency indicates that total electricity demands will not increase nationally. while we can build more should,ucture and energy efficiency is a tremendous way to offset the needs of things like new data centers in order to create balanced environment. >> we are going to close with a north dakota lightning round. kathy talked about rebranding. .e have rebranded north dakota people, we think it touches everything the 51 different agencies and states work on. we know that people want to work for a place with a purpose. we don't have the right value for talent as governor cooper was saying. we have to work with everything
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we have. number two is smart roads. baring optic fiber there. we can tell the difference between a truck, a motorcycle, a pedestrian. when there is a slowdown, ice conditions, temperatures around freezing, we can decide do we send the trucks out to plow or put something into the road, we can do that when we have better information versus waiting until it starts happening and sending people out. into dakota is number two -- in the country on broadband. we want to be the first state that has gigabyte access in every school in the community. we are working with microsoft on rural high-speed wireless. so we can get to every tractor, every rancher. us withl also help
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building the first ua asked air traffic control system -- u.s. air traffic control system. we have a very safe airspace. we could in a period of 10-20 flying around. we are going to build it out and go statewide. we can do agriculture. we can do transmission lines. we can do pipelines better than humans can. we did have the lindbergh flight which had a 41 foot wingspan drone at several thousand feet from north dakota that landed in britain safely. in 24 hours and two minutes. we can certainly fly them around our state. you talked earlier about every
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citizen getting involved. as we talk about our initiative of healthy, vibrant cities, heavy on tracking the workforce we need and having smart infrastructure, one of the ways we have done that is we created -- pulling data from 40 different -- we greeted the dashboard, pulling data from 40 different cities. -- created the dashboard, pulling data from 40 different cities. our small, he wrote team that are working to try to make that. in the end, i want to think philip, the ceo of itron. deloitte. the ceo of let's give them a hand. [applause] >> innovative technologies are coming online and they are going to make changes.
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the types of jobs people have now may be different in a few years. futuresult, we launched so that we are looking at innovative technologies that are coming down the pike in the next few years and are going to have an impact. >> we are not democrats or republicans, we are the ceos that have to build coalitions. >> and it is building those relationships, finding the best ways to move our states forward, individually, often is done by working collectively. >> it does not matter to me what the republicans -- if they are republicans, or democrat, good ideas come from everybody. themking what i learn from back to my home state to improve the lives of utah. us i learned from one another's -- and learn from one another's
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experiences to shape and improve state programs. >> not only are we getting ideas from governors about how they engage but we are hearing from the experts from the industry that are talking about things that we had not thought about sometimes. it is important for technologies to engage with the leaders and staffs. it is important as governors to get their input. >> there is so much benefit when we have leaders of the themology sector meet with . we find that interaction extremely valuable. governors can learn from those technology leaders about what changes might be coming soon that they need to deal with and adapt to. it is really important that governors and their teams are getting to know leaders of the technology sector. who are going to be potentially investing or making changes that might impact the jobs in their state. >> we don't know what the
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technologies of the future are going to be but we want to mitchell we have the best possible environment for those ideas to grow and prosper. role inor can play a terms of going out and finding those technologies and bringing that investment to the state. >> the emerging technologies bring a tremendous amount of challenges to nevada and our workforce. our economy is changing. it is changing for the better. it is changing and i think it is really important that governors embrace these new ideas. embrace these new technologies. most important, prepare the citizens of their respective states for the training that they need. so important because it is the one place where we gather together and learned the latest and the greatest. we -- >> we are doing the types of activities that are getting state officials, governors, and their cabinet secretary's together. reports,e calls,
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making sure that governors and their teams are not in the dark. they are aware of the innovative technologies that they have to deal with. organization only that gives this to governors. there is nowhere else you can get it. >> good morning everyone. i am the governor of arkansas, thank you for joining us today. i am chair of the governors association, education and workforce committee. as you know, governors, all across the country, want to give students a strong foundation for success in their state, in terms of education. this is illustrated by the fact that k-12 education, lowering the cost of college, early childhood education were among
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the top 10 policy issues most mentioned by gubernatorial candidates in 2018. and so far, in their states, state of the state -- state's state of the state speeches, governors have mentioned it nearly 340 times. school, nearly 400 80 times. and teachers 138 times. -- nearly 480 times. and teachers 138 times. education is essential to ensuring our states succeed. in my state of arkansas, we have concentrated on education. first, being the first state to mandate commuter assignments -- computer science. playing $5 million every two years into read -- putting $5 yearsn into -- every two into retraining teachers. as a result of this, we have
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seen our students that are taking computer science go from 1000 to 4000 to 6000 last year and another 30% growth to 8000 students -- over 8000 students this year. when we started this initiative, we had 223 girls taking coding. now, we have over 2400 girls taking coating in the state of arkansas. -- coding in the state of arkansas. reading at grade levels, third grade, the culture of reading in our community, individualized plans for students to succeed in reading. this is a critical part of our education effort. finally, one of the key agenda items that i had in this legislating session and that our general assembly has passed is that we raise minimum teacher salaries in arkansas by $4000
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over the next four years. these are initiatives that, given the foundation that we need in education in our state. i am delighted by -- to be joined by governor jay hemsley of washington state. commentsk him for his and for the introduction of as distinguished guests. >> thank you. it is something that republicans and democrats agree on. this governor has been really providing national leadership, i want to thank you. it has been a pleasure to work with you on this. i know that in the next b minutes, we will express the great -- few mitts, we will express the great work we have done -- few minutes, we will express the great work we have done. i will have to downplay our achievements. i want to make commons on things
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we have been working that are just comments on things we have been working on that are similar to a lot of people. -- comments on things we have been working on that are similar to a lot of people. we put in several million dollars to make sure we have grant programs. we have increased the number of students that are taking ap computer classes by 600% in the last few years. we know the market is there. parents and kids are intensely interested in this. the land of microsoft understands the privacy and will be moving the needle on this. we put $8 million more into our schools in general because when you do that, you empower schools to do great things. we joined a lot of you in making huge strides in early childhood education because that is the single best investment you can make with a taxpayer dollar. hopefully we will have a another 2000 plus in this legislative session. on the other end, we are doing
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some pretty exciting things in financial aid. mostve probably the beneficial financial aid package. 20,000 added another financial aid. inope to add another 20,000 the next several months. i am very proud of this, that is really helping to what we -- lead what we call career collective learning. we want teenagers to be involved in paid internships so that we can create avenues of career connectedness. have an ambition like switzerland where 70% of their students are in an apprenticeship to understand the avenue of success. i encourage you to go there and see what they are doing. i hope we are going to succeed. we have the real experts here. that we haveto say
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the folks who have done so much. the king, who has been secretary of education under barack obama. now he is leading the education trust. the best work he has done, he is an actual teacher. and a principal, i believe. we are looking forward to his commons. and rod paige, who was the secretary of execution under president george w. bush. he is known as talking about the best in class theory. that was well-known in congress, when you are -- you were doing your work. we appreciate that. team towe have a dream talk about these issues. i am looking forward to this. let's see. are you going to go first? >> thank you so much for the opportunity to join all of you. it is good to be here in this conversation about education. rod and i are believers that
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this should be at the top of every governors agenda. we are honored to be a part of the conversation. let me start with some good news. we have the highest graduation rate we have ever had across the country. we have sent more african-american and latino students to college. those are all good things and we should celebrate that progress. at the same time, i think one of focusings that we should our attention on is that we have a lot of work to do. and we have some real challenges. particularly when you look focus our at our standing compared to our international competitors. countries like singapore and finland continue to outperform us in significant ways. the united states used to be first in the world in college completion. we have fallen to 13th. we have large achievement gaps for african-american students, latino students.
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and student with disabilities. we see that throughout our k-12 system and in our higher education system. we continue as a country to give belief to the students who need it the most. students of color are less likely to have access to quality earning -- learning. less likely to have access to effective teachers and resources. less likely to have access to art and music, advanced coursework like ap and ib. consequences in our outcomes. those achievement gaps are the product of opportunity gaps. collectively, we need to take more action to address. part of why this conversation is so important is that the states are uniquely positioned to tackle this. the vast majority of funding is at the state and local level. the federal level is quite small at the end of the day. state and local leadership
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determines the curriculum, the expectation, who is hired. what roles they play in school, that is at the local and state level. move an agenda as governors is usually powerful and important. -- hugely powerful and important. if you look back to the 1989 education summit, it was governors who set in motion a 25 year period to raise government standards in teaching and learning in school. take to make a similar commitment to not just a small progress but huge gain? we can look across the state and see some promising examples that we should look to. one, we have a number of states where there is an opportunity to have -- governor baker would call it a grand bargain.
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earlyhusetts, in the 90's, put up a lot of additional money, in exchange for higher standards. higher standards for the teaching profession. clear accountability systems. and the ability of the state to meaningfully intervene in struggling schools. and help propel messaging outcomes. now, there are a number of states for massachusetts to michigan who have an opportunity to think about what would it mean to put in more resources but to make sure there are attachedl expectations to those additional resources. we know there are a number of states that talk about this. they are focused on access to early learning. we see more and more students getting early learning experiences. the key is are we doing enough on the quality side. ? making sure educators are
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well-prepared and well trained. are we making sure the -- it is very promising that we have so much momentum. we have a lot more to do. only 40% of our low income four-year-olds are in quality pre-k settings. we have a lot of work to do to expand access. important work around teacher compensation. governor hutchinson mentioned tot i -- it is important remember that one of our biggest challenges in the united states, compared to our international peers, they pay our teachers less when it comes to college graduates. there are countries that most significantly outperform us. places like singapore, teachers are making 90 and 100% of what the typical college graduate would make. there is a lot of work to do to
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make sure that we recruit and retain strong teachers. as we do that work, we need to have the conversation about the career and what it looks like. how do we make sure that we attract the strongest teachers. --? in arkansas and washington, there is additional funding for teachers who are willing to teach in high need schools. we have to do more to make sure that those kids get access to the best teachers. that is the only reason i am sitting here today. up in brooklyn and new york city. both my parents passed away when i was a kid. my mom when i was eight, my dad when i was 12. the only reason i am alive today is because i had a series of fantastic new york city public school teachers who changed the trajectory of my life. made it safe and supportive
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when my home was not. the last executive -- example that i think is promising is work to make sure that we strengthen the bridge between high school and college. school and post secondary learning. not everyone will get a four year degree but everyone will need that or an associates degree or some meaningful career credential to give you access to a good paying job. there is a lot of exciting work happening around the country. florida is increasing -- onthe work in texas enrollment so that students can start to take college classes while -- dual enrollment so that students can take college classes while in high school. students graduate with a high
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school diploma and an associates degree, first in line for a job at a competitive 21st century employer. there is more to that transition process. governor edwards in louisiana, louisiana is one of the leading states in fafsa completion. making sure students complete the federal application for student aid. that is critically important because every year, students leave billions of dollars on the table that they could have to pay for postsecondary training because they did not complete that fafsa. the work that louisiana did is doing is an example for other states around the country. , we get to talk more about that, we have a real opportunity as congress begins to consider reauthorization of the higher education act, to consider what does it mean to strengthen access to higher education? what does it mean to address the
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affordability challenge and how do we close our gap? ambitiouss here have attainment goals. those goals will not be met if we do not make huge progress for low income students. we have to be intentional about supporting those students. we have institutions that are doing impressive work. georgia state has closed the college attainment cap through intrusive advising. and financial support to the community college program at the university of new york called asap. we know there are paths to improving college completion. that has to be our focus as we think about reauthorization of the higher ed act. i will turn it over. >> thank you. me toyou for allowing
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join this event. time to talkse my about two things. i want to thank you for your leadership for the nation's well-being. thank you for your leadership, and education. i view the governors as the key leaders in our national education efforts. secondly, i want to use this to encourage you. even though you have done great work in education, to redouble that effort. let me offer some evidence. froml use a comment secretary -- former secretary duncan. while looking at the 2012 results of the united states of america, he made this comment. the big picture of u.s.
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proponents is -- it is a picture of educational stagnation. just met with the education foundation. going through their website, i noticed a presentation entitled "moving through in education. " i want to focus on those two words. stagnation and nurture. two interesting terms. when referring to education. they are similar in meaning. bothare both portrayed -- portrayed terrible ideas of american education. stagnation, motionless. all terms that we do not want to have in the discussion about how
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we are doing in education. say thaty, they do not we are going backwards. they say we are not going forward. instead of -- it depicts a situation of being stalled. stuck in place. standing still. not making proper progress. nationshis, while other -- all this while other nations are advancing. report by harvard's education, program -- hong kong, germany, and other countries are moving twice the rate. in a short seven years of
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existence, the people's republic of china, we have noticed they have made significant progress in education. so much so that in that short period of time, their education system is gaining respect. report, weo a 2018 ,ind that they are located there are seven of the top 100 most effective school systems. here's my question. can we, as a great nation of allow --llowed -- can we not see the education gap widening between us in certain parts of the world?
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public not warned about education in 1983, that our nation was at risk if we did not improve? have we paid too little attention to the united states commission on national security in the first century? i have great it regards education as a national security issue. allow me to use a quote from that report to explain why have this point of view. here is the first quote. " second only to a weapon of mass destruction that knitting in an american city we can think of nothing more dangerous than a failure to manage properly science technology in education
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good."e common this was published in 2000. the second quote i would like to -- despiteave made the fact that advancement in education is it really considered paramount national security issue. we emphasize the growing -- i will close by the thinking of the governors very the u.s. is different from many other countries that we are competitive with. our leadership comes from individual states. because our constitution is silent on k-12 education. the 10th amendment makes it real
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clear that the states are in charge here. that means our nation's governors operate in a key and important role. i'm proud of the work our governors are doing. in this moment there is a commitment to encourage even though you're doing spectacular work. i think education is a national security issue. we will be left behind in many .ases that is my thought. >> thank you. >> thank you dr. paige and mr. king. excellent presentations. we want to open up the conversation to our governors very and will turn to our vice chair


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