>> Ted: COMING UP ON "ARIZONA HORIZON" AN HOUR-LONG SPECIAL EDITION AS WE HEAR GOVERNOR HOBBS' STATE OF THE ADDRESS.

THAT'S NEXT ON "ARIZONA HORIZON."

GOOD EVENING AND WELCOME TO THIS SPECIAL HOUR-LONG EDITION OF "ARIZONA HORIZON."

GOVERNOR KATIE HOBBS DELIVERED HER STATE OF THE STATE ADDRESS AS THIS KICKED OFF.

WE AIRED THE ADDRESS FOLLOWED BY ANALYSIS.

HERE NOW IS THE GOVERNOR'S STATE OF THE STATE ADDRESS.

>> GOOD AFTERNOON.

CHIEF JUSTICE, SECRETARY FONTES ATTORNEY GENERAL MAYES, SUPERINTENDENT HORN, PRESIDENT PETERSONSON, LEADERS TERAN, MEMBERS OF THE LEGISLATURE, TRIBAL LEADERS, HONORED GUESTS AND PEOPLE IN ARIZONA OF EVERY CORNER OF OUR STATE, IT IS AN HONOR TO JOIN YOU HERE TODAY.

WE GATHER EVERY YEAR FOR THIS ANNUAL TRADITION.

BUT BEFORE WE BEGIN, I WANT TO TAKE A MOMENT OF PERSONAL PRIVILEGE TO HONOR A MAN WHO LIVED HIS LIFE IN THIS STATE IN SERVICE TO THIS STATE.

MEL HANNA, WHO SERVED AS THE CHAIR OF THE SECRETARY OF STATE DURING MY TENURE AND AFRICAN-AMERICAN AFFAIRS PASSED AWAY LAST NIGHT.

HIS FAMILY AND FRIENDS ARE IN MY HEART AND PRAYERS TODAY.

AND IN THE SPIRIT OF SERVICE THAT HE EMBODIED, LET BEGIN TO HAVE CANDID DISCUSSIONS ABOUT THE ISSUES FACING OUR STATE AND HE WE CAN WORK TO ENSURE A BETTER FUTURE FOR EVERY COMMUNITY.

WE ARE ALL HERE BECAUSE WE CARE DEEPLY ABOUT ARIZONA AND IT'S NATURAL BEAUTY AND IT'S ABUNDANT OPPORTUNITIES AND MOST OF ALL, ITS RESILIENT, DIVERSE AND INCREDIBLE PEOPLE.

I KNOW I SPEAK FOR ALL OF THIS STATE'S ELECTED OFFICIALS WHEN I SAY, IT IS A PROFOUND HONOR TO REPRESENTATIVE OUR FELLOW PEOPLE IN ARIZONA AND WE HAVE AN OBLIGATION TO LISTEN, TO FIND COMMON GROUND AND TO CRAFT REAL SOLUTIONS DURING THE 56th 56th LEGISLATURE.

AS A FORMER MEMBER OF BOTH OF HOUSE OF RELATES REPRESENTATIVES AND SENATE, I HAVE A DEEP RESPECT FOR EACH OF YOU.

I KNOW CLARITY, WILL HELP MAKE THE MOST.

LET ME BEGIN BY REPEATING SOMETHING FROM MY INAUGURAL ADDRESS LAST WEEK.

IF YOU'RE READY TO MAKE REAL PROGRESS ON THE ISSUES THAT MATTER MOST TO THE PEOPLE OF THIS STATE, THEN MY DOOR WILL ALWAYS BE OPEN.

HOWEVER, CHASING CHASING THEORIES, ATTACKING THE RIGHTS OF YOUR FELLOW AR IRKIZONIANS OR WILL LEAD NOWHERE.

[CHEERS AND APPLAUSE] >> INSTEAD, I WOULD LIKE TO EXTEND AN INVITATION.

LET'S WORK TOGETHER TO MAKE A SIGNIFICANT IMPACT IN THE LIVES OF THE FAMILIES AND COMMUNITIES OF THIS STATE FOR TODAY AND YEARS TO COME BY LOWERING COSTS, INVESTING IN PUBLIC EDUCATION AND SECURING OR WATER FUTURE AND TACKLING THE AFFORDABLE HOUSING CRISIS AND OTHER REAL ISSUES THAT ARE HOLDING BACK TOO MANY.

THE PEOPLE OF ARIZONA HAVE SENT US HERE TO FIND SOLUTIONS TO THESE ISSUES AND THAT'S EXACTLY WHAT MY ADMINISTRATION WOULD BE FOCUSED ON DOING FOR THE NEXT FOUR YEARS.

[APPLAUSE] >> ONE OF THE THINGS I LEARNED AS A SOCIAL WORKER IS THE POWER OF PROSPERITY.

WHEN FAMILIES ARE DOING WELL, SO MANY OTHER THINGS START GOING THE SAME WAY.

AND WHILE EVERY ISSUE THAT WE FACE HAS COMPLEXITIES, ONE THING THAT'S NOT COMPLICATED IS THAT THE EASIEST WAY TO CHANGE SOMEONE'S LIFE IS TO GIVE THEM A NEW AND BETTER JOB.

FOR ARIZONA'S BUSY COMMUNITY, I BELIEVE IN THE POWER OF PROSPERITY AND I AM COMMITTED TO BUILD ON THE THRIVING, DYNAMIC FOUNDATION WE HAVE IN THIS STATE WHERE BUSINESSES AND THE PEOPLE WHO MAKE THEM RUN SUCCEED TOGETHER.

[APPLAUSE].

TO ARIZONA'S EDUCATORS, PARENTS AND STUDENTS, YOU KNOW BETTER THAN ANYONE THAT EDUCATION MUST BE THE TOP ISSUE WE TACKLE.

I WILL SEEK YOUR GUIDANCE.

TO THE TRIBAL GOVERNMENTS AND NATIONS, YOUR VOICES WILL BE HEARD IN MY ADMINISTRATION.

YOUR SOVEREIGNTY WILL BE RESPECTED AND YOUR CONTRIBUTIONS WILL BE RECOGNIZED AS WE MOVE INTO THE FUTURE.

[APPLAUSE] >> TO ALL OF ARIZONA DIVERSE VIBRANT AND STRONG COMMUNITIES, WITH HAVE BUILT OUR STATE INTO THE INCREDIBLE PLACE IT IS TODAY.

AS WE GO FORWARD INTO THE FUTURE, IT WILL TAKE ALL OF US, ALL OF US TO MAINTAIN OUR STRENGTH, FIX OUR DEFICIENCIES AND BLAZE NEW TRAILS FOR THE GENERATIONS THAT FOLLOW.

WE START THIS NEW CHAPTER IN A UNIQUE POSITION.

THE STATE OF OUR STATE OFFERS PROMISE AND WE MUST ACT ON IT.

GROWING CUTTING-EDGE COMPANIES ARE MOVING HERE TO TAP INTO THE STATE'S FOR TIER WORK FORCE AND HEALTHY ENVIRONMENT.

HOWEVER, TOO MANY OF OUR RURAL COMMUNITIES ARE LEFT BEHIND BECAUSE THEY DON'T HAVE THE INFRASTRUCTURE THEY NEED LIKE HIGH-SPEED INTERNET.

COMPANIES HAVE RECORD JOB OPENINGS, BUT FAR TOO MANY ARIZONA RESIDENTS CAN'T AFFORD RAPIDLY INCREASING RENTS OR HAVE BEEN PRICED OUT OF BUYING A HOME.

WE HAVE SOME OF THE BEST K-12 SCHOOLS IN THE COUNTRY, BUT THE STATE HAS LONG FAILED TO LIVE UP TO ITS OBLIGATION TO ADEQUATELY ININVEST FAIRLY IN PUBLIC EDUCATION IN EVERY COMMUNITY AND WE SEE THE RESULTS OF THAT -- [APPLAUSE] -- WE SEE THAT WITH HIGH TEACHER VACANCY RATES IN SOME DISTRICTS WITH CRUMBLING INFRASTRUCTURE.

ARIZONA HAS LANDSCAPES AND UNRIVALED BEAUTY.

HOWEVER, WE MUST DO MORE TO PROTECT OUR FOREST AND WATERSHEDS FROM THE DEVASTATING EFFECTS FROM FIRE AND DROUGHT.

[APPLAUSE] >> OUR STATE HAS A DEDICATED PUBLIC SECTOR WORKFORCE, BUT WE CAN DO BETTER IN REFLECTING THE DIVERSITY OF OUR STATE TO BETTER SERVE OUR COMMUNITIES.

THOSE WHO WORK IN PUBLIC SERVICE SHOULD FEEL EMPOWERED AND IT IS OUR RESPONSIBILITY TO ENSURE BARRIERS TO ACCESSIBILITY THAT IT'S BROKEN DOWN FOR ALL.

AS WE LOOK TO THE FUTURE, WE CANNOT CONTINUE TO KICK THE CAN DOWN THE ROAD ON THESE ISSUES AND SO MANY OTHERS.

WE OWE IT TO OUR FELLOW PEOPLE IN ARIZONA, BOTH THIS GENERATION AND THE NEXT TO FACE THESE CHALLENGES HEAD-ON.

AS I SAID IN MY INAUGURAL ADDRESS, I'M AN OPTIMIST, ESPECIALLY WHEN IT COMES TO ARIZONA.

I BELIEVE THAT WE ARE THE GREATEST STATE IN THIS NATION.

I BELIEVE IN OUR CANDIDATE EDUCATORS AND STUDENTS.

I BELIEVE IN THE MEN AND WOMEN WHO PROTECT US EVERY DAY AND IN OUR RISK TAKERS AND ENTREPRENEURS.

I BELIEVE IN OUR PUBLIC SERVANTS.

I BELIEVE IN THE FUTURE OF OUR INCREDIBLE STATE AND I KNOW THAT YOU DO, TOO.

IN THE LATE GOVERNOR MOFFERT'S STATE OF THE STATE ADDRESS, SHE SPOKE ABOUT DIFFICULT CHOICES AS SHE SPOKE ABOUT DOING THE RIGHT THING, ELEMENTARY AND HIGH SCHOOL EDUCATION, SUPPORTING THE STATE HEALTHCARE SYSTEM AND OTHER CRITICAL CHALLENGES OF HER TIME.

NO ONE SHOULD BE SURPRISED THAT GOVERNOR MOFFORDERT FOR THE RIGHT THING.

SHE HAD AN UNDERSTANDING OF WHAT THE PEOPLE OF ARIZONA WANTED AND NEEDED.

SHE KNEW WHEN TO FIND BIPARTISAN COMPROMISE AND WHEN TO STAND FIRM IN HER BELIEFS.

AS WE BEGIN TO WRITE THIS NEW CHAPTER FOR THE STATE WE ALL LOVE, I ASK THAT WE ALL TAKE INSPIRATION FROM GOVERNOR MOFFERT'S ACTIONS AND LOOK ORDERS THE FUTURE TO THE PARTNERSHIPS WE WILL FORGE TO THE CHALLENGES WE OVERCOME TOGETHER TO THE GOOD WE DO FOR OUR FELLOW ARIZONIANS.

I HOPE YOU UNDERSTAND WE ARE COMMITTED TO ACTION AND TO IMPROVING THE LIVES OF EVERY ONE IN ARIZONA.

[APPLAUSE] >> IF YOU ARE COMMITTED TO THOSE SAME IDEALS, THEN I AM READY TO WORK I'D SIDE BY I'D WITH YOU, NO MATTER YOUR PARTY RIG REGISTRATION.

EDUCATION GAVE ME A CHANCE TO BUILD A BETTER LIFE AND I KNOW THAT'S TRUE FOR COUNTLESS OTHERS IN ARIZONA AND FOR MANY IN THIS CHAMBER TODAY.

AND THAT'S WHY I'VE SPENT SO MUCH OF MY PUBLIC LIFE FIGHTING FOR BETTER SCHOOLS AND TO LEVEL THE PLAYING FIELD.

WE MUST ADDRESS THE POTENTIAL CATASTROPHE IN JUST A FEW MONTHS IN THE LEGISLATURE DOES NOT ACT TO ADDRESS THE ARCHAIC FUNDING CAP KNOWN AS THE LIMIT BY MARCH 1st.

AS OF LAST YEAR BUDGET NEGOTIATIONS, A PROMISE WAS MADE TO OVERRIDE THIS LIMIT AND THAT'S BASED HOW AN OUT OF DATE FORMULA HOLDING OUR PUBLIC SCHOOL'S HOSTAGE AND THAT PROMISE WAS NOT KEPT.

WE MUST MAKE THIS RIGHT.

IF WE DO NOT, THIS TICKING TIME BOMB WILL EXPLODE AND FORCE A $1.3 BILLION CUT THAT WILL BE ONE OF THE LARGEST IN STATE'S HISTORY AND HAPPEN IN THE LAST TWO MONTHS OF THE SCHOOL YEAR.

SUPERINTENDENT AND EDUCATION LEADERS ARE WARNING THIS WILL CAUSE FURLOUGHS, LAYOFFS AND POSSIBLY EVEN SCHOOL CLOSURES.

IT IS UNNECESSARY TO ALLOW THESE HYSTERICSHISS TEARICSHISHIS TEARICS TO GO ON ANY LONGER.

LET'S GIVE OUR TEACHERS AND PARENTS ASSURANCE OUR SCHOOLS WILL REMAIN OPEN.

[CHEERS AND APPLAUSE] >> THE SOLUTION IS SIMPLE AND DOESN'T ANOTHER PENNY TO DO THE RIGHT THING.

REPRESENTATIVE DAVID COOK HAS INTRODUCED A ROSE RESOLUTION AND THIS SHOULD BRING IT TO THE FLOOR.

THE DEMOCRATS IN BOTH CHAMBERS ARE READY TO ACT ON THIS IMMEDIATELY.

[APPLAUSE] >> LOOKING BEYOND THIS PRESSING ISSUE, IT'S TIME TO REINVEST IN PUBLIC SCHOOLS.

FOR YEARS, OUR LEADERS HAVE CHOSEN TO IGNORE PARENTS, TEACHERS AND STUDENTS WHO KNOW WE CAN HAVE THE GREATEST EDUCATION SYSTEM IN THE NATION AND WE HAVE CROWDED CLASSROOMS.

AND RATHER THAN DOING THE RIGHT THING AND FACING THESE CHALLENGES HEAD-ON, THE PREVIOUS LEGISLATURE PASSED A MASSIVE EXPANSION OF SCHOOL VOUCHERS THAT LACKS ACCOUNTABILITY AND WILL LIKELY BANKRUPT THIS STATE.

IN FACT, FUNDING THIS EXPANSION IS POISED TO COST ARIZONA TAXPAYERS AN ESTIMATED $1.5 BILLION OVER THE NEXT TEN YEARS IF LEFT UNADDRESSED.

THAT'S WHY WHEN MY BUDGET IS DELIVERED ON FRIDAY, YOU WILL SEE THAT IT TRULY INVESTS IN PUBLIC SCHOOLS AND STUDENTS.

WE WILL BEGIN WITH OUR PUBLIC SCHOOL TEACHERS WHO CONTINUE TO BE CAUGHT IN THE MIDDLE OF CRISES OF OUR OWN MAKING AND FOR THOUSANDS OF THEM, IT'S TOO MUCH PUPMUCH.

ONE IN FOUR TEACHERS LEAVE ARIZONA SCHOOLS IN FOUR YEARS THIS IS.AS THE SISTER OF TWO PUBLIC SCHOOL TEACHERS, I SEE HOW HARD THEY WORK EVERY DAY ON BEHALF OF THEIR STUDENTS.

SO TO THE TEACHERS AND THE EDUCATION SUPPORT PROFESSIONALS OF OUR STATE, I SEE YOU.

I RESPECT YOU AND I WILL ALWAYS STAND UP FOR YOU.

[CHEERS AND APPLAUSE] >> TO THE MEMBERS OF THIS LEGISLATURE, WHEN WE KEEP THE MOST TALENTED MEMBERS, OUR COMMUNITIES WIN AND I'LL BE LAUNCHING A TASK FORCE TO DEVELOP A FRAMEWORK AND IMPROVE CLASS SIZES, RESOURCES, WORKING CONDITIONS AND OTHER FACTORS THAT WILL PUT US ON A PATH TO FIX THESE ISSUES AND RETAIN EDUCATORS.

THE REALITY IS, WE DON'T HAVE AN EDUCATORS SHORTAGE.

WHAT WE HAVE IS A RETENTION CRISIS.

THERE ARE TOO MANY AMAZING PROFESSIONALS WHO HAVE WALKED AWAY FROM THE CAREER THEY LOVE BECAUSE OF THE UNCOMPETITIVE SALARIES, ONEROUS POLICIES AND UNFINISHED MAN MANDATES THAT ROB EDUCATORS OF THE CONSERVATIVE JOY OF TEACHING TEACHING.

IT'S TIME WE STARTED TREATING TEACHERS WITH THE RESPECT THEY DESERVE.

[CHEERS AND APPLAUSE] >> FOR THE LAST FIVE YEARS, ARIZONA HAS BEEN INVOLVED IN A LAWSUIT ABOUT SCHOOL FACILITY'S FUNDING AND LAST WEEK WITH SUPPORT FROM ATTORNEY GENERAL MAYES -- [CHEERS AND APPLAUSE] -- MY OFFICE LEAD THE SUCCESSFUL EFFORT TO PUT THE BRAKES ON A COSTLY AND WASTEFUL TRIAL SCHEDULED TO START TODAY SO THAT WE CAN FOCUS ON SOLVING PROBLEMS INSTEAD OF NEEDLESSLY PAYING LAWYERS TO FIGHT IN COURT.

[APPLAUSE] >> WITH THE RELEASE OF MY BUDGET ON FRIDAY, WE WILL ADDRESS HISTORICAL NEEDS AND.

ANOTHER STEP WE WILL TAKE TO HELP ALL COMMUNITIES FAIRLY.

CURRENTLY, OUR STATE GOVERNMENT HAS SCHOOL LETTER GRADES AND ASSESSMENT RESULTS.

THIS APPROACH HAS LARGELY BENEFITED ONLY SCHOOLS IN HIGH WEALTH AREAS OF ARIZONA'S TWO LARGEST AREA, MARICOPA AND PIMA LEAVING RURAL AREAS MIND.

BEHIND.

MY BUDGET REDIRECTS THE $68.6 MILLION TO THE BASE SUPPORT LEVEL WHICH GOES TO ALL SCHOOLS ACROSS OUR STATE INSTEAD.

[CHEERS AND APPLAUSE] >> LET ME GO ON THE RECORD TO SAY THAT ANY SCHOOL THAT ACCEPTS TAXPAYER DOLLARS SHOULD HAVE TO ABIDE BY THE SAME DOLLARS THAT ALL SCHOOL DISTRICTS DO.

[CHEERS AND APPLAUSE] >> WE HAVE SEEN TOO MANY EXAMPLES OF INDIVIDUALS AND SHADY CORPORATIONS TAKING ADVANTAGE OF THE SYSTEM AND OUR STUDENTS.

LET'S WORK TOGETHER TO REQUIRE THAT ANY SCHOOL THAT ACCEPTS PUBLIC DOLLARS ALSO PARTICIPATES IN THE AUDITOR GENERAL'S ANNUAL SCHOOL DISTRICT'S SPENDING REPORT AS WELL AS TAKE OTHER STEPS TO ENSURE OUR TAXPAYER DOLLARS ARE GOING WHERE THEY SHOULD AND BEING SPENT PROPERLY.

[CHEERS AND APPLAUSE] >> BEYOND THIS WORK, BEYOND THIS WORK TO ENSURE TRANSPARENCY FOR HOW TAXPAYER FUNDS ARE SPENT, THERE ARE OTHER DIRECT ACTIONS TO SUPPORT OUR SCHOOLS AND STUDENTS.

WE NEED TO PRIORITIZE HIRING SOCIAL WORKERS TO ADDRESS THE MENTAL HEALTH CRISIS AMONG CHILDREN AND TEENS.

CURRENTLY, EACH COUNSELOR PROVIDES SERVICES FOR MORE THAN 700 KIDS ON AVERAGE AND THAT IS THE HIGHEST RATIO IN THE NATION AND NEARLY THREE TIMES THE RECOMMENDED STANDARD.

THAT'S UNACCEPTABLE AND WE MUST DO BETTER.

[CHEERS AND APPLAUSE] >> I STRONGLY URGE LEGISLATORS TO BRING SOLUTIONS TO MY DESK TO ENSURE OUR PUBLIC SCHOOLS IN ALL COMMUNITIES HAVE THE RESOURCES THEY NEED TO HELP OUR KIDS SUCCEED.

LET US NOW TURN OUR ATTENTION TO OPPORTUNITIES FOR OUR STATE'S NEXT GENERATION AFTER THEY GRADUATE HIGH SCHOOL WHERE MY ADMINISTRATION WILL WORK TO CREATE ACCESS TO A WIDE RANGE OF EDUCATION OPPORTUNITIES AS THEY EMBARK ON THE NEXT CHAPTER OF THEIR LIVES.

THAT MEANS INVESTING IN COMMUNITY COLLEGES -- [CHEERS AND APPLAUSE] >> -- PARTICULARLY IN RURAL ARIZONA.

>> AS WELL AS DUAL ENROLLMENT PROGRAMS STATEWIDE.

SO NO MATTER WHERE A YOUNG ADULT LIVES, THEY CAN EARN COLLEGE CREDITS OR GET A GOOD PAYING JOB.

[APPLAUSE].

>> FOR TENS OF THOUSANDS OF OTHER STUDENTS, CHOOSING TO PURSUE A FOUR-YEAR DEGREE FROM ONE OF OUR STATE'S MAJOR PUBLIC UNIVERSITIES IS THE RIGHT PATH AND MAKE NO MISTAKE, WE THREE OF THE FINEST COLLEGES IN THE COUNTRY RIGHT HERE.

[APPLAUSE] >> ARIZONA STATE UNIVERSITY, NORTHERN ARIZONA UNIVERSITY, AND THE UNIVERSITY OF ARIZONA ALL PRODUCE WORKFORCE READY GRADUATES, ATTRACT MILLIONS OF DOLLARS IN INVESTMENTS AND PUSH THE BOUNDARIES OF INNOVATION.

WE MUST CONTINUE TO IMPROVE ACCESS FOR HIGHER LEARNING.

THAT'S WHY WE'RE EXPANDING THE ARIZONA SCHOLARSHIP PROGRAM WHICH MADE COLLEGE MORE AFFORD AFFORDABLEAFFORDABLE FOR TEN THOUSAND STUDENTS WHO WILL HAVE AN OPPORTUNITY TO PURSUE A COLLEGE DEGREE BUT OTHERWISE WOULD HAVE HAD BEEN HELD BACK.

WE'RE NOT STOPPING THERE.

WITH THE WILL OF ARIZONA'S VOTERS IN PASSING PROPOSITION 308 THIS PAST NOVEMBER, MY BUDGET ALLOCATES $40 MILLION TO CREATE THE PROMISE FOR DREAMERS' SCHOLARSHIP TO COVER ALL STUDENTS REGARDLESS OF IMMIGRATION STATUS.

[CHEERS AND APPLAUSE] >> MY ADMINISTRATION IS READY AND WILLING TO WORK TOGETHER TO ENSURE ARIZONA'S HIGHER EDUCATION OPPORTUNITIES ARE THE BEST IN THE NATION AND PUT INDIVIDUALS ON THE PATH TO FUTURE PROSPERITY.

AS WE ALL KNOW, WE HAVE SO MANY REASONS TO BE PROUD OF ARIZONA.

COMPANIES ARE GROWING HERE AND AS A RESULT, THE JOB MARKET IS ROBUST.

WHAT'S MORE, WE HAVE ENORMOUS POTENTIAL ON THE HORIZON AND WE MUST ACKNOWLEDGE THE FLIP SIDE OF THIS PROSPERITY, THAT TOO MANY FAMILIES ARE GETTING FURTHER AWAY FROM ACHIEVING THE AMERICAN DREAM DUE TO THE HIGH COST OF HOUSING.

OUR STATE IS NO STRANGER TO THE BOOM AND BUST HOUSING CYCLES.

THREE ARIZONA CITIES, TUCSON, MESA AND PHOENIX HAS SEEN THE HIGHEST RENT INCREASES IN THE NATION AND THE NUMBER OF INDIVIDUALS EXPERIENCING HOMELESSNESS HAS RISEN SIGNIFICANTLY IN RECENT YEARS.

WE CAN DO BETTER.

LET'S WORK TOGETHER TO ENSURE THAT HERE IN ARIZONA, ANY PERSON WHO WANTS TO ACHIEVE THE AMERICAN DREAM OR HAVE A SAFE ROOF OVER THEIR HEAD CAN DO SO.

MY ADMINISTRATION'S FIRST STEP IS TO SUPPORT A $150 MILLION INVESTMENT INTO THE HOUSING TRUST FUND THIS YEAR AND IT WILL CALL FOR ADDITIONAL SUPPORT IN THE YEARS AHEAD.

[APPLAUSE] >> IN ADDITION TO THE MEASURES, LAST WEEK, I SIGNED AN EXECUTIVE ORDER REESTABLISHING THE INTERAGENCY AND COMMUNITY COUNCIL ON HOMELESSNESS AND HOUSING.

THIS COUNCIL WILL FOSTER COLLABORATION AMONG STATE AND LOCAL AGENCIES, THE PRIVATE SECTOR AND NONPROFITS TO HELP IDENTIFY SOLUTIONS FOR INDIVIDUALS AND FAMILIES EXPERIENCING HOMELESSNESS OR STRUGGLING WITH HOUSING AFFORABILITY.

BEYOND HOUSING, OUR EFFORTS TO SUPPORT INDIVIDUALS AND FAMILIES MUST ADDRESS THE RISING COSTS OF EVERY DAY ITEMS AND SERVICES.

EVEN AS OUR STATE CONTINUES TO BE AN INCREDIBLE PLACE TO LIVE AND WORK, WE CAN DO MORE TO HELP FELL FELL PEOPLEFELLOW PEOPLE IN ASS TO GET AHEAD.

OUR BUDGET SETS IT'S A $50 MILLION FOR FAMILIES EARNING $50,000 A YEAR TO PAY FOR THE RISING COSTS FOR BASIC NECESSITIES FOR THEIR CHILDREN.

[APPLAUSE] >> WE WILL ALSO HELP TO LOWER COSTS FOR ARIZONA FAMILIES BY EXEMPTING DIAPERS AND FEMININE HYGIENE PRODUCTS FOR OUR STATE SALE'S TAX.

[CHEERS AND APPLAUSE] >> THESE EVERY DAY ITEMS ADD UP AND WE CAN AND SHOULD PROVIDE THIS RELIEF TO INDIVIDUALS AND FAMILIES WHO TOO OFTEN MUST CHOOSE BETWEEN PAYING BILLS OR PAYING FOR THE THINGS THEY NEED TO BE HEALTHY.

BUT THIS SHOULD ONLY BE THE START.

MY ADMINISTRATION IS READY AND WILLING TO WORK WITH YOU AND MY DOOR WILL ALWAYS BE OPEN TO ANY MEMBER WHO BRINGS FORWARD A SERIOUS PROPOSAL TO HELP ARIZONA FAMILIES, SENIORS AND COMMUNITIES.

LET'S WORK TOGETHER TO FIND WAYS TO LOWER COSTS AND HELP EVERY COMMUNITY ACROSS OUR GREAT STATE THRIVE ECONOMICALLY.

[APPLAUSE].

>> EVERY COMMUNITY ACROSS OUR STATE ALSO DESERVES TO BE SAFE.

BUILDING AN ARIZONA FOR EVERYONE MEANS BUILDING A SAFE ARIZONA FOR EVERYONE.

THIS OBLIGATION EXTENDS OUR OUR BORDER AND OUR BROKEN IMMIGRATION SYSTEM AND THE COMMUNITIES ACROSS THE STATE WHO CONTINUE TO BEAR THE BRUNT OF WASHINGTON'S DECADES OF FAILURE ON THIS CRITICAL ISSUE.

UNFORTUNATELY, IMMIGRATION HAS BEEN POLITICIZED FOR FAR TOO LONG.

ARIZONA VOTERS TOLD US IN NOVEMBER THAT THEY DON'T WANT OR NEED POLITICAL STUNTS DESIGNED SOLELY TO GARNER SENSATIONALISTS, TV COVERAGE AND GENERATE SOCIAL MEDIA POSTS.

[APPLAUSE].

>> SPEAK TO LEADERS AND BORDER COMMUNITIES AND ACROSS THE STATE AND IT'S CLEAR, THEY NEED REAL SOLUTIONS AFTER DECADES OF FAILED LEADERSHIP BY BOTH PARTIES.

WE MUST TAKE A HOLISTIC, REALISTIC AND HUMANE APPROACH TO SOLVE THIS ISSUE.

THAT MEANS SUPPORTING SERVICES AND LOCAL LAW ENFORCEMENT IN IMPACTED COMMUNITIES AND IT MEANS SUPPORTING COMMUNITY CENTERS AND HOSPITALS.

I AM ENCOURAGED BY THE WHITE HOUSE'S RECENT ACTIONS TO FINALLY VISIT THE BORDER AND START PROPOSING REAL STEPS TO BEGIN ADDRESSING THE PROBLEMS OF THE CURRENT SYSTEM.

WHILE OPTIMISTIC, I WILL CONTINUE TO PUSH CONGRESS TO DO ITS JOB AND PASS COMPREHENSIVE IMMIGRATION REFORM.

VISIT BORDER COMMUNITIES AND SPEAK WITH LOCAL LEADERS AND LAW ENFORCEMENT LIKE I AND MANY OTHERS HAVE DONE AND YOU'LL COME AWAY A BROADER UNDERSTANDING OF THE COMPLEXITIES OF THIS ISSUE AND THE URGENT NEED TO INSTITUTE SOLUTIONS.

THAT'S WHY I'VE INVITED HOMELAND SECURITY WHO WANT EFFECTIVE AND HUMANE SOLUTIONS TO THIS LONG-TIME CHALLENGE.

I LOOK FORWARD TO WORKING WITH LAW ENFORCEMENT, NONPROFITS AND COMMUNITY LEADERS THROUGHOUT MY TIME IN OFFICE TO IDENTIFY REAL SOLUTIONS, HOLD THE FEDERAL GOVERNMENT ACCOUNTABLE AND CREATE A SAFE ARIZONA FOR ALL RESIDENTS.

POPULATION.

[APPLAUSE].

A >> ENSURING A SAFE FUTURE FOR ARIZONA MEANS DEFENDING FREEDOMS OF ALL RESIDENTS.

I REFUSE TO STAND BY AND DO NOTHING AS MY DAUGHTER OR ANYONE'S DAUGHTER NOW HAS FEWER RIGHTS TODAY THAN I DID GROWING UP.

AN OVERWHELMING MAJORITY OF PEOPLE IN ARIZONA, MORE THAN 90%, IN FACT, BELIEVE ABORTIONS SHOULD BE LEGAL.

[APPLAUSE].

>> IT'S TIME WE ALL HEED THE MESSAGE OF THE PEOPLE OF THIS STATE AND MEET THIS MOMENT TO ENSURE WE CAN ALWAYS MAKE OUR OWN HEALTHCARE DECISIONS.

MY ADMINISTRATION WILL ALWAYS PROTECT REPROTECT REPRODUCTIVE FREEDOMS FOR ARIZONA AND I WILL STOP ANY LEGISLATION OR ACTION THAT ATTACKS, STRIPS OR DELAYS THE LIBERTY OR INHERENT RIGHT OF ANY INDIVIDUAL TO DECIDE WHAT'S BEST FOR THEMSELVES OR THEIR FAMILIES.

[CHEERS AND APPLAUSE] >> MY BUDGET WILL MATCH THE FEDERAL TITLE 10 MONEY OUR STATE RECEIVES TO PROVIDE REPRODUCTIVE SERVICES AND FAMILY MEDICATION BRINGING OUR TOTAL TO MORE THAN $12 MILLION.

THIS STEP WILL INCREASE THE IMPACT HERE IN ARIZONA FOR SIGNIFICANTLY MORE LOW INCOME WOMEN.

HOWEVER, THIS SHOULD ONLY BE A START.

I URGE MEMBERS OF THE LEGISLATION TO PUT BILLS ON MY DESK THAT WILL PROTECT WOMEN, SUPPORT FAMILIES AND CREATE A FUTURE FOR ARIZONA WHERE ANYONE, REGARDLESS OF GENDER, CAN SUCCEED.

[APPLAUSE].

>> FINALLY, NONE OF THE SOLUTIONS OR EVEN THE FUTURE I'VE SPOKEN ABOUT TODAY WILL BE POSSIBLE WITHOUT OUR STATE'S MOST PRECIOUS RESOURCE, WATER.

WE MUST TALK ABOUT THE CHALLENGE OF OUR TIME.

ARIZONA'S DECADE'S LONG DROUGHT, OVERUSAGE OF THE COLORADO RIVER AND THE COMBINED RAMIFICATIONS ON OUR WATER SUPPLY, OUR FOREST AND OUR COMMUNITIES.

WE ARE IN A CRITICAL MOMENT WHERE WE MUST BE UNIFIED, WHERE WE MUST FORM NEW AND STRONGER PARTNERSHIPS AND WHERE WE MUST FIND BIPARTISAN SOLUTIONS AT A LOCAL STATE-WIDE AND NATIONAL LEVEL.

THIS ISSUE DOES NOT STOP AT INTERNATIONAL BORDERS.

WE WILL ALL THRIVE TOGETHER IN THE FUTURE OR WELE WE WILL BE LEFT WITH THE CATASTROPHIC RESULTS OF OUR FAILURES.

FORTO THE ACCOMPLISHMENTS OF JOHN KYLE AND BRUCE BABBOTT TO DECADES OF EFFORTS BY PEOPLE IN ARIZONA BEFORE THEM, OUR STATE'S LEADERS ARE AT THEIR BEST WHEN THEY REACH ACROSS THE AISLE FOR PRAGMATIC SOLUTIONS ON THIS ISSUE.

[APPLAUSE].

>> WE SHOULD FOLLOW IN THEIR FOOTSTEPS AS WE SELECTIVELY COLLECTIVELY FACE A DROUGHT UNLIKE ANY TIMES.

THE COLORADO RIVER, TIER TWO CUTS WENT INTO EFFECT, MEANING ARIZONA WILL LOSE 21% OF OUR WATER THAT COMES FROM THE MOST IMPORTANT RIVER IN THE COUNTRY.

THIS EQUATES TO REDUCING OUR USAGE BY 592,000-ACRE FEET JUST THIS YEAR.

WE MUST ALSO ALL UNDERSTAND THIS.

BARRING A MIRACLE FROM NATURE, IT WILL GET WORSE BEFORE IT GETS BETTER.

THIS SHOULD BE A WAKE-UP CALL FOR ALL OF US BECAUSE IT WILL TAKE ALL OF THE US TO SOLVE IT.

LEGISLATORS, PUBLIC OFFICIALS, THE BUSINESS COMMUNITY, EACH AND EVERYONE OF US MUST COMMIT TO THE PARTNERSHIP TO AVOID THIS.

THE FOUNDATION OF THOSE PARTNERSHIPS MUST BE ROOTED IN TRANSPARENCY AND HONEST CITY ABOUT THE FACTS AND WHAT WE'RE FACING.

FOR THOSE REASONS, IN THE NEXT FEW MINUTES, YOU'LL RECEIVE A PREVIOUSLY UNRELEASED REPORT BY THE DEPARTMENT OF DEPARTMENT OF WATER RESOURCES THAT SHOWS PHOENIX'S FAR WEST VALLEY ARE SHORT OF THE ONE-HUNDRED YEAR PROGRAM BY 15% TODAY.

THIS REPORT UNEQUIVOCALLY SHOWS WE HAVE TO ACT NOW OR THIS WILL BE THE FIRST NEW AREA THAT FACES THIS KIND OF SHORTAGE.

I DON'T UNDERSTAND AND DO NOT IN ANY WAY AGREE WITH MY PREDECESSOR CHOOSING TO KEEP THIS REPORT FROM THE PUBLIC AND FROM MEMBERS OF THIS LEGISLATURE.

HOWEVER, MY DECISION TO RELEASE THIS REPORT SIGNALS HOW I PLAN TO TACKLE OUR WATER ISSUES OPENLY AND DIRECTLY.

[APPLAUSE] >> EXPERTS HERE IN ARIZONA AND ACROSS THE NATION AGREE, THERE IS NO SILVER BULLET SOLUTION TO OUR CURRENT WATER CHALLENGES.

WE MUST EVALUATE AND INVEST IN BOTH SHORT AND LONG-TERM EFFORTS THAT WILL HELP US ACHIEVE OUR GOALS.

THIS REALITY DRIVES THE THREE COMPONENTS OF MY PLAN FOR A RESILIANT ARIZONA.

FIRST, MY ADMINISTRATION HAS HEARD LOUD AND CLEAR THAT REESTABLISHING A GOVERNOR'S ENERGY OVER IS A PRIORITY FOR COMMUNITIES ACROSS THE STATE.

[APPLAUSE].

>> IN RESPONSE, WITH WILL RELAUNCH THIS ENTITY AS THE GOVERNMENT'S OFFICE OF RESILIENCY FOCUSING ON WATER, ENERGY AND LAND USE SOLUTIONS.

THIS OFFICE WILL COORDINATE OFFICES WITH THE MANY DEPARTMENTS, TRIBAL GOVERNMENTS, ORGANIZATIONS AND OTHERS INVOLVED IN THIS EFFORT.

ARIZONA NEEDS PARTNERSHIPS ON A LOCAL, STATE, REGIONAL AND NATIONAL LEVEL AND I INTEND TO PUT US IN THE BEST POSITION TO DO SO.

NEXT, MY ADMINISTRATION WILL ISSUE AN EXECUTIVE ORDER TO LAUNCH THE GOVERNOR'S WATER POLICY COUNCIL TO MODERNIZE MODERNIZE AND EXPAND THE GROUNDWATER ACT.

FACING OUR CURRENT REALITY, IT'S TIME TO UPDATE GROUNDWATER MANAGEMENT TOOLS AND PROTECT THE GROUNDWATER SUPPLIES, PARTICULARLY IN OUR RURAL COMMUNITIES.

WE MUST TAKE THESE ACTIONS TODAY BECAUSE IN MANY PARTS OF OUR STATE, THERE ARE NO RESTRICTIONS ON GROUNDWATER PUMPING AND LOCAL COMMUNITIES HAVE LITTLE TO NO SUPPORT TO MANAGE WATER SUPPLIES.

AS A RESULT, A NEW WATER USER CAN MOVE IN, DIG A WELL AND PUMP AS MUCH WATER AS POSSIBLE, EVEN IF IT DRIES UP THE COMMUNITY'S AQUIFER.

THIS IS WHY YOU SEE A SAUDI ARABIA CONGLOMERATE TODAY, TO GROW WATER INTENSIVE CROPS AND SEND THEM TO THE OTHER SIDE OF THE PLANET.

WE ALL KNOW THAT'S NOT RIGHT.

OUR GROUNDWATER SHOULD BE USED TO SUPPORT PEOPLE IN ARIZONA AND NOT FOREIGN BUSINESS INTERESTS.

[APPLAUSE].

>> LET'S CLOSE THIS WATER-LOOP WATER-LOOPHOLE.

IN ADDITION, MY BUDGET ALLOCATES FUNDS TO SET UP ACTIVE MANAGEMENT AREAS.

ALL CITIES AND TOWNS IN OUR STATE NEED TO PROACTIVELY MANAGE OUR GROUNDWATER AND BY FUNDING THIS, WE'RE PROVIDING A POWERFUL TOOL TO ENSURE WE STRIKE A BALANCE BETWEEN USAGE AND RECHARGING OUR WATER TABLE.

FOR THE LAST PART OF THIS APPROACH, I LOOK TO YOU, MEMBERS OF THE LEGISLATURE.

WE'RE ALL IN THIS TOGETHER TO BRING FORWARD INNOVATIVE SOLUTIONS TO THIS CHALLENGE OF OUR TIME.

WE CANNOT LET THE SAME OLD PARTISAN FIGHTS DRAG US DOWN.

[APPLAUSE] >> MY ADMINISTRATION IS READY AND WILLING TO WORK WITH YOU AND WE WILL DO WHAT'S BEST FOR ARIZONA AND THE PEOPLE.

IT IS MY BELIEF THAT WE ALL UNDERSTAND THE GRAVITY GARAGE GRAVITY OF THE CHALLENGES BEFORE US AND PROVE TO THE PEOPLE OF OUR STATE, THE NATION, AND AROUND THE WORLD ARIZONA'S VISIONARY LEADERSHIP TO ENSURE A STABLE WATER SUPPLY FOR THE MILLIONS OF PEOPLE WHO CALL THIS PLACE HOME.

THESE CHALLENGES WILL NOT BE EASY.

NOR WILL THE OTHER ISSUES WE NEED TO CONFRONT INCLUDING FIXING PRINTS, ACCESSIBILITY FOR ALL IN ARIZONA, LOWERING CHILDCARE COSTS, SUPPORTING VETERANS, PROTECTING OLDER AND VULNERABLE PEOPLE IN ARIZONA AND SO MUCH MORE.

BUT THE PEOPLE OF ARIZONA DID NOT SEND US TO THIS CAPITOL TO SOLVE EASY PROBLEMS OR LEAVE THEM UP TO THE NEXT GENERATION.

THEY SENT US HERE TO DO THE RIGHT THING, NO MATTER HOW DIFFICULT THAT MAY PROVE TO BE.

WE WILL NOT LET THEM DOWN.

[APPLAUSE].

>> I SPOKE EARLIER IN THESE REMARKS ABOUT GOVERNOR MOFFERT AND SO SOLVE THE CHALLENGES OF THEIR TIME.

PERHAPS NOTHING IN HER SPEECH DID MORE TO DRIVE HOME THE URGENCY OF THE TIME, THAN THESE WORDS IN THE CONCLUSION.

"WE CANNOT DELAY.

OPPORTUNITIES STAYED.

ARIZONA'S FUTURE HANGS IN THE BALANCE.

I SAY TO YOU, JOIN WITH ME IN MAKING THESE DIFFICULT DECISIONS AND TOGETHER WE WILL JOURNEY TO THE NEXT FRONTIER ."

THEY PUT ARIZONA ON A MONTH TO PROSPERITY AND IMPROVED LIVES OF MANY FAMILIES.

IT IS MY SINCERE HOPE WE CAN DO THE SAME MORE THAN 30 YEARS LATER.

IN THE DAYS, MONTHS AND YEARS AHEAD, OF ALL NIGHT BUDGET NEGOTIATIONS, MARATHON VOTING AND DISAGREEMENTS, LET US NEVER FORGET THAT WE ALL HOLD A DEEP LOVE FOR THIS STATE.

WE ARE HERE BECAUSE WE WANT TO ENSURE THE GENERATIONS THAT FOLLOW HAVE A CHANCE TO ALSO DISCOVER THAT LOVE.

THANK YOU FOR ADMITTING COMMITTING TO PUBLIC SERVICE, FOR YOUR PARTNERSHIP IN FINDING REAL SOLUTIONS AND FOR THE CONTRIBUTIONS WE WILL ALL MAKE GOING FORWARD AS WE BUILD AN ARIZONA FOR EVERYONE.

NOW LET'S GET TO WORK!

[CHEERS AND APPLAUSE] >> Ted: THAT WAS GOVERNOR HOBBS' STATE OF THE STATE ADDRESS AND JOINING US NOW IS THE PRESIDENT AND CEO OF HIGH GROUND AND THE GENTLE'S AGENCY.

THANK YOU FOR JOINING US.

CARL, YOUR THOUGHTS?

>> A LOT OF OPTIMISM AND SHE'S BEEN DOING THAT FROM THE INAUGURATION AND STRAIGHT UNTIL TODAY.

SO I THINK SHE CAME OFF REALLY WELL AND YOU KNOW, SHE EXTENDED HER HAND OF BIPARTISAN AND LET OUT WARNINGS, I WON'T PUT UP WITH FOOLISHNESS AND NO DEMOCRACY, BUSTING THING COMING DOWN THE PIPE AND MADE IT CLEAR ON WHAT SHE EXPECTED TO SEE IN FIRST FEW WEEKS.

>> Ted: CHUCK?

SHE WAS CALM AND DID A GOOD JOB DELIVERING THE SPEECH BECAUSE SHE'S GOTTEN CRITICISM AND I WAS PLEASED ANDWASPLEASED.

SHE DIDN'T DIVE INTO IT, EXCEPT THE WATER STUFF AT THE END.

>> Ted: MOST OF THE STATE OF THE STATE ADDRESSES ARE BIG ON IDEAS AND BY THE END OF THE WEEK, WE GET THE BUDGET AND THE RUBBER HITTING THE ROAD AND THROWING NUMBERS OUT.

>> YOU RESERVE THAT FOR THE BUDGET AND YOU DON'T WANT TO TIP YOUR HAND EXCEPT THE THEMES YOU SEE.

SO SHE WAS CLEAR ON PRIORITIES.

ALL OF HER SPEECH WAS ON EDUCATION.

SO WE KNOW THAT'S GOING TO BE A HIGH PRIORITY AND IT SHOULD BE.

WE HAVE AGGREGATE SPENDING AND TEACHERS TO RETAIN AND KEEPING THIS STATE -- IT WAS INTERESTING, SHE SAID WE DON'T HAVE A TEACHER SHORTAGE PROBLEM BUT TEACHER RETENTION PROBLEM AND I THOUGHT THAT SIGNALED WHAT SHE SHOULD BE DOING.

>> Ted: SHE SAID TIME FOR THE HISSHISS TEARHISS TEARICSTHEHISS TEAR ERICS TO GO AWAY.

>> SHE WAS CLEAR ABOUT THE THINGS TO PURSUE.

SHE WOULD PROTECT WOMEN'S REPRODUCTIVE RIGHTS AND ANY EFFORT WOMAN A WOMAN TO CHOOSE AND THE TACKLE THE EDUCATION ISSUE AND NOW IS THE TIME TO DO SO AND TAKE CARE OF THE THE AEL.

>> Ted: SHE MENTIONED ALL AIR ALL AREAS OF THE STATE NUMEROUS TIMES.

>> A CONSCIOUS TIP OF THE CAP THAT WE'RE NOT JUST MARICOPA COUNTY AND NOT JUST TALKING ABOUT THE COUNTY, PARTICULARLY IN REFERENCE TO HER WATER POLICY AND CLOSING THE BABBOTT GAP.

SHE WANTS A POLICY THAT COVERS ALL OF ARIZONA.

SO THERE WAS, OBVIOUSLY, TIPS OF THE CAP TO MANY PARTS OF ARIZONA, TRIBAL COMMUNITIES, WHICH YOU WOULD EXPECT FROM A DEMOCRATIC GOVERNOR.

THERE WAS INCLUSIVENESS AND BRINGING ALL OF ARIZONA TOGETHER.

>> Ted: WHAT ABOUT REPEATED REFERENCES TO ROSE MOFFERT.

>> THE LAST WAS JANET NAPOLITANO NAPOLITANO.

IT WAS COMING AND I THINK SHE WANTS TO PORTRAY THAT TO THE ARIZONA POPULATION, AS WELL, THAT SHE'LL BE A CALMING FORCE.

WE HAVE BEEN THROUGH AN AWFUL LOT IN THE STATE AND IN THIS NATION AND I THINK SHE WANTS TO BRING THAT CALMING VOICE.

>> Ted: NOT A FIRE AND BRIMSTONE SPEECH.

>> THAT'S NOT HER AND I THINK THAT WAS EVOCATIVE, HER EVOCATION OF ROSE WAS A VERY COGNIZANT THING TO CALL OUT THAT TYPE OF CHARACTER AMIDST AS WE RECALL, ROSE TOOK OVER IN A TURBULENT TIME AND A CALMING INFLUENCE.

SHE WANTS TO ACT -- I THINK IN SAYING THAT, SHE WANTS TO ACT IN THAT WAY.

>> Ted: AS FAR AS EDUCATION, WE TALKED ABOUT THE SPENDING LIMIT AND THE HYSTERICS CAN'T GO ON AND HOW ABOUT TEACHER RESENSE AND HOW WILL THIS FLY IN A REPUBLICAN LEAD LEGISLATION IN.

>> YOU?

>> YOU JUST DON'T KNOW.

THE EDUCATION ISSUE AFFECTS REPUBLICAN CONSTITUENTS AS THEY DO DEMOCRATS.

IN FACT, YOU MIGHT ARGUE THEY AFFECT THE RURAL COMMUNITIES FAR GREATER.

SO THEY'LL HAVE TO DO SOMETHING.

I, TOO, I, TOO,I DON'T THINK ANYONE OF THE REPUBLICANS WILL SAY I SIDED NOT DECIDED NOT TO TAKE THE AEL CAP OFF AND YOU JUST SHATTERED SMALL RURAL COMMUNITIES.

>> Ted: IT'S HER GOAL TO LEVEL THE PLAYING FIELD AS FAR AS EDUCATION GOES.

>> SHE WAS POINTED ABOUT THE SCHOLARSHIPS, THE EMPOWERMENT SCHOLARSHIPS AND WANTS MORE OVERSIGHT AND I DON'T KNOW SHE'LL GET CAPS BUT OVERSIGHT.

ON THE AEL STUFF, YOU KNOW, I WOULD NOT BE A BETTING MAN THAT WILL HAPPEN IN A HURRY.

THERE'S A LOT OF REPUBLICANS TO EXTORT THINGS ON THAT.

MAYBE A SOLUTION TO ELIMINATE THE PENALTY AND KICK THIS TO THE END OF THE LEGISLATION SESSION AND ALLOW SCHOOL DISTRICTS TO SPEND THEIR MONEY AND THEN DEAL WITH THIS AS MOST OF THE ISSUES.

I'M AFRAID WE'LL BE DEALT WITH IN THE END OF THE LEGISLATIVE SESSION.

IF YOU'RE PLANNING ON A VACATION IN JUNE, TAKE THAT OFF.

>> Ted: THAT WAS ONE OF MY QUESTIONS.

DO YOU SEE THIS BEING A SHORT SESSION AS A GRIDLOCK OR A LONG ONE?

>> I THINK IT'S A LONG SESSION.

LOOK, SHE HAS THAT VETOED PEN, THAT STAMP WAITING TO BE USED AND SO, WE'RE AND THING TO SEE -- AND WE TALKED ABOUT IT, A LOT OF KIND OF STRANGE THINGS UPFRONT, GET THOSE THINGS OUT THE DOOR AND DOWN TO REAL BUSINESS BECAUSE THE NEW SPEAKER, THE LEADERSHIP OF THE HOUSE AND SENATE, THEY HAVE BONES TO THROW TO THEIR FOLKS.

AFTER THAT IS OPPORTUNITY, WE GET ONTO BUSINESS.

>> Ted: IS THAT WHAT YOU SEE IN.

>> THE SPEAKER?THE SPEAKER SAID, YOU HAVE TO LET THE DOGS RUN, CHUCK, FOR AWHILE IN THE FIRST COUPLE OF MONTHS OF THE SESSION AND WE'LL SEE WHAT PASSES AND I ASSUME SOME OF THAT STUFF WILL DIE OF ITS OWN WEIGHT IN ONE CHAMBER OR ANOTHER AND SOME WILL SLIP THROUGH AND IT'S A WAY OF ALLOWING -- REMEMBER, WE HAVE 32 NEW MEMBERS DOWN THERE AND SO, THEY HAVE TO FEEL LIKE THEY'RE APART OF THE PROCESS.

LETTING THEM TO WHAT THEY TO, RUN THAT PROCESS AND THEN, AS THE END OF THE SESSION BECOMES CLEARER, WORKING ON THE TYPE OF BUDGET COMPROMISES THAT ACTUALLY HAVE TO BE DONE.

>> YOU'VE GOT A HUGE NEW GROUP OF PEOPLE DOWN THERE.

SOME OF THEM ARE LOOKING FOR THEIR DESK AND HAVEN'T FIGURED OUT WHERE THEY SIT.

I'M BEING FACETIOUS AND SOME FOLKS ARE TRYING TO FIGURE OUT THE PROCESS AND WHAT WILL I DO DURING THIS FIRST SESSION.

THERE'S A BIG LEARNING CURVE AND A LOT OF EDUCATION BEFORE YOU GET TOWN TO REAL BUSINESS.

>> Ted: CHUCK, WHAT ABOUT THE ABORTION, 90% OF ARIZONA BELIEVES ABORTION SHOULD BE LEGAL AND WILL USE EVERY POWER OF THE GOVERNMENT THAT DISTRACTS, DELAYS, AND THAT PROMPTED A WALK-OUT BY SOME REPUBLICANS?

>> THAT'S PROBABLY HER POLLING NUMBER AND NOT THAT FAR OFF.

IT SHOULDN'T BE SHOCKING TO ANY REPUBLICAN OR ANYBODY INTO THAT SPEECH TODAY THAT SHE WOULD TALK ABOUT THAT BECAUSE IT IS AN IMPORTANT ISSUE OR REASON WHY SHE GOT ELECTED.

AND SO, FOR HER TO MENTION IT, SHOULDN'T COME AS A SURPRISE.

I WAS PERSONALLITIES PERSONALLY DISAPPOINTED.

I HADN'T SEEN ALL OF THE REPUBLICANS WALK OUT AS MANY TO TODAY ON THE ABORTION REMARKS.

I'M DISAPPOINTED BY THE BEHAVIOR.

>> REALLY, THEY ESSENTIAL HI SAID THEY WOULD OPPOSE HER.

THEY WERE OPPOSING SOME OF HER EXECUTIVE ORDER.

>> Ted: WAS IT THE FIRST ONE.

>> THE FREEDOM CAUCUS.

THEY DON'T HAVE AN ATTORNEY GENERAL ANYMORE.

SO THEY HAVE TO FIRE THEIR OWN LAWYER.

>> Ted: CHECK, LET'S TALK ABOUT WATER AND THE CHALLENGEFUL HER CHALLENGE OF HER LAWYER.

IS THIS EVERYONE DANCING AROUND THE VOLCANO.

>> MORE DANCING AROUND THE VOLCANO ANALOGY.

WE'LL SEE WHAT ENDS UP METRICULATING THROUGH THE PROCESS HERE.

>> Ted: WHAT DO YOU THINK?

>> I AGREE.

THIS WAS A BIG ISSUE AND THE ISSUE OF OUR TIME.

IT IS SINCE I'VE BEEN HERE IN ARIZONA, 35, 40 YEARS NOW, AND SO WE HAVE TO FIND A SOLUTION.

BUT THE SOLUTION IS A VERY DIFFICULT THING BECAUSE, LOOK, WE DON'T CONTROL THE SUPPLY SIDE.

WE CONTROL THE DEMAND SIDE AND THAT'S THE PUSH.

ISSUE.

WE OWN HAVE SO MUCH.

>> Ted: ARE YOU SURPRISED THE GOVERNOR CALLED OUT THE FORMER GOVERNOR REGARDING THIS REPORT?

>> SHE'S TRYING TO CLOSE THE GAP.

IT'S THE DEPARTMENT OF THE WATER RESOURCES AND TRYING TO SHOW CONFIDENCE IN HIM AND HE WAS GETTING CRITICISM FOR NOT RELEASING THIS REPORT.

THROWING THE FORMER GOVERNOR UNDER THE BUS, WHICH SHE DID, WHICH HAS BEEN TRUE BECAUSE HE HAS MANY ARMS TIED BEHIND HIS BACK.

SO SHE TOOK THE OPPORTUNITY TO GIVE HIM A "HALL PASS" AND TOOK THE POLITICAL OPPORTUNITY TO THOUGH THE FORMER GOVERNOR UNDER THE BUS.

THIS WAS A SIGNIFICANT REPORT THAT SHOWS SERIOUS WATER PROBLEMS IN THE WEST VALLEY, IN SOME OF THE HIGHEST GROWTH AREAS IN MARICOPA COUNTY.

FOR THEM TO HOLD THAT BACK WAS NOT GREAT.

THAT'S NOT A GOT TRANSPARENT LOOK.

>> Ted: NOT HAVING THAT REQUIRED 100 YEAR SUPPLY.

>> THAT'S WHAT I WAS GOING TO SAY.

CLEARLY, THE WATER CRISIS IS MORE THAN WE'VE BEEN LEAD TO UNDERSTAND.

THIS REPORT SEEMS TO INDICATE THAT AND SO THAT'S IN THE WEST VALLEY AND YOU CAN IMAGINE THE REST OF THE COMMUNITY.

>> Ted: 30 SECONDS FOR EACH YOU.

YOU TOLD THE LEGISLATURE AT THE END, WE CAN'T LET PARTISAN FIGHTS DRAG US DOWN AND THANKED LAWMAKERS FOR COMMITTING TO PUBLIC SERVICE.

DOES THAT MAKE ANY KIND OF DIFFERENCE?

>> I THINK IT DOES.

I'LL BE THE OPTIMIST HERE WITH THOSE WILLING TO GO ALONG, WHICH AT THE END OF THE DAY WILL BE THE PEOPLE THAT GET A BUDGET DONE.

YOU HAVE TO PLAY THE BEGINNING OF THE GAME LIKE YOU PLAY THE END OF THE GAME.

AND SO BESEACOFFING PEOPLE.

>> THERE WILL BE FASTBALLS BETWEEN NOW AND THEN.

>> Ted: GENTLEMEN, THANK YOU.

I'M TED SIMONS AND THANK YOU FOR JOINING US AND YOU HAVE A GREAT EVENING.