Arizona Governor Katie Hobbs

>> >>> NEXT ON ARIZONA HORIZON, VINCENT LE GOFF KATY HOBBS JOINS US, INCLUDING HER ABILITY TO GET THINGS DONE AS A GOVERNOR.

ASER G KATY HONS THE NEXT ARIZONA HORIZON.

GOOD EVENING AND WELCOME TO ARIZONA HORIZON.

I'M TED SIMONS.

CHECK OF HEADLINES: WEATHER CONDITIONS IN MUCH OF THE STATE HAVE IMPROVED TO THE POINT THAT A NUMBER OF HIGHWAYS IN NORTHERN ARIZONA ARE BACK OPEN.

THAT INCLUDES A STRETCH OF 1-17 FROM JUST NORTH OF CAMP VERDE ALL THE WAY UP TO FLAGSTAFF, ALONG WITH STATE ROUTE 89A BETWEEN SEDONA AND FLAGSTAFF.

SOME HIGHWAYS, THOUGH, REMAIN CLOSED, INCLUDING STATE ROUTE 87 BETWEEN PAYSON AND WINSLSOW.

ADOT SAYS THAT CLOSURES COULD RETURN LATER THIS EVENING IF THE WEATHER AGAIN TURNS BAD.

THINGS "CONTINUE" TO BE BAD AROUND THE COUNTRY, WITH 60-MILLION AMERICANS UNDER WEATHER ALERTS.

AREAS OF THE WEST AND MIDWEST HAVE SEEN SNOW, FREEZING RAIN AND ICE.

ALL THIS AS THE SOUTHEAST IS BASKING AND AT TIMES "BAKING" IN RECORD HIGH TEMPERATURES.

ECONOMIC NEWS: THE U.S. JOBS MARKET REMAINS TIGHT.

THAT'S ACCORDING TO THE U.S. LABOR DEPARTMENT, WHICH REPORTS THAT 1ST-TIME WEEKLY UNEMPLOYMENT CLAIMS DROPPED BY 3000 LAST WEEK.

THAT'S BETTER THAN ECONOMISTS HAD EXPECTED.

SAME GOES FOR "CONTINUING" JOBLESS ALSO OF NOTE: 401-K PARTICIPANTS KEPT THEIR SAVINGS RATES RELATIVELY STEADY IN THE 4TH QUARTER OF LAST THAT'S A BIT OF SURPRISE TO ECONOMISTS, CONSIDERING CONCERNS ABOUT INFLATION, A POSSIBLE RECESSION AND FALLING MARKETS.

THE AVERAGE 401-K SAVINGS RATE WAS AT 13.7-PERCENT, DOWN FROM 13.8 IN THE 3RD QUARTER AND 13.9-IN THE PRECEDING QUARTER.

AMONG GENERATIONS IN THE WORKFORCE, BABY BOOMERS HAD THE HIGHEST SAVINGS RATE AS A PERCENTAGE OF THEIR INCOME, WITH THE YOUNGEST COHORT, GEN-Z WORKERS, SAVING THE LEAST.

AND IF YOU HAPPEN TO HAVE A BUNCH OF HOLIDAY GIFT CARDS LAYING AROUND THAT YOU STILL HAVEN'T USED, YOU'RE NOT ALONE.

A NEW STUDY SHOWS THAT NEARLY 2- .

>> STEREO IT ACTS FOR 2 IS BILLION OF UNUSE GIFT CARDS, THEY DO NOT EXPIRE UNTIL THE DATE IT WAS ACTIVATED, ACCORDING TO FEDERAL LAW.

>>> GOVERNOR KATIE HOBBS HAS BEEN ON THE JOB FOR TWO MONTHS, AND HER ABILITY TO GET THINGS DONE IS CREASINGLY CHALLENGED BY A REPUBLICAN LED LEGISLATURE.

EARLIER TODAY GOVERNOR HOBBS JOINS US TO TALK ABOUT HER RELATIONSHIP WITH THE LEGISLATURE AND ACTIONS AS GOVERNOR OF THE STATE.

WELCOME BACK TO ARIZONA HORIZON, THANK YOU FOR JOINING US.

>> THANK YOU FOR HAVING ME.

>> WE HAVE A LOT TO TALK ABOUT, A LOT REGARDING THE LEGISLATURE, I WANT YOUR RESPONSE ON A REPORT, AND THE ATTORNEY GENERAL RELEASED DOCUMENTS.

THE PREVIOUS ATTORNEY-GENERAL HAD AN INVESTIGATION OF ELECTION FRAUD CLAIMS FOUND NOTHING BUT SAT ON THE REPORT.

YOU WERE SECRETARY OF STATE AT THE TIME.

TALK TO YOU ABOUT THIS.

>> IT IS INFURIATING.

NOT ONLY DID HE SIT ON THE REPORT BUT CONTRADICTED FINDINGS, TO TRY TO PLAY BOTH SIDES OF THE ELECTION ISSUE, I THINK HE WAS IN THE PROCESS TRYING TO BOLSTER A SENATE RUN THAT FELL SHORT.

TO SAY THAT IT'S IRRESPONSIBLE.

I JUST - A TOOK A LOT OF GRIEF WHEN WE TITLE AN ETHICS COMPLAINTS WITH HOW HIS OFFICE WORKED IF WITH THE SECRETARY OF STATE.

TO SAY THAT'S A LITTLE VINDICATED IT IS IN FEWER RATING.

I HOPE SOMETHING WILL BE DONE TO MAKE HIM ACCOUNTABLE.

>> HE SAID HE DID THE REVISED THING AND THERE'S IRREGULARITIES AND IT NEEDS TO BE LOOKED AT.

WHEN YOU HEAR THAT, WHAT DO YOU THINK.

>> HIS INVESTIGATION, RELEASED BY ATTORNEY-GENERAL MAYS, SHOWS THAT THERE WERE NO IRREGULARITIES OR CIRCUMSTANCES THAT LED TO PROBLEMS WITH THE ELECTION RESULTS.

HE KNEW THIS, SAT ON IT.

AND HE DIDN'T TRY TO SET THE RECORD STRAIGHT.

>> I JUST YOU WANTED YOUR RESPONSE TO THAT IT'S A BIG STORY.

A LOT IS GOING ON, DID YOU EXPECT IS TO BE THIS CONTENTIOUS.

>> I WAS EXPECTING CONTENTION.

IN AN ERA WHERE ARIZONIANS WANT OFFICIALS TO BE ABLE TOABLE.

AND WALKING IN WITH AN OPEN DOOR, THAT WE COULD FIND COMMON UNIT.

I HAVE OPTIMISM THAT WE CAN DO THAT, IT'S TAKING A WHILE LONGER TO GET THERE.

I'M WORKING - STAFF IS TALKING TO LEGISLATE TOURS ON BOTH SIDES OF THE AISLE.

WE ARE WORKING TO FIND COMMON GROUND ON ISSUES WHERE WE CAN WORK TOGETHER AND WHAT WE NEED TO ADDRESS.

>> ONE OF THE POINTS OF CONTENTION ARE YOUR NOMINEES FOR STATE AGENCIES AND SUCH.

WE ARE FINDING OUT THAT YOUR NOMINEE FOR THE DIRECTOR OF CHILD SAFETY, YOU PULLED THAT NOMINATION, WHY.

>> LET ME START BY SAYING OUR NOMINEES ARE EXTREMELY QUALIFIED AND THEY WERE LECTED AND INTERVIEWED AND RECOMMENDED BY THE BIPARTISAN COMMITTEE THAT I SELECTED.

AND I CERTAINLY EXPECT SOME BETTING TO GO ON FROM THE SENATE.

THE LEVEL THAT THEY ARE DOING IT.

THIS IS NOT VETTING, THIS IS STATE ELECT TORE JAKE HOFFMAN SETTING A STAGE TO CONDUCT HIS POLITICAL THEATRE THAT IS ABOUT PERSONAL VENDETTAS AND ATTACKS AND IS NOT GETTING THE JOB OF THE SENATE DOWN.

THAT IS UNFORTUNATE.

ARIZONANS ARE PAYING THE COST FOR THAT, IT HAS THE POTENTIAL TO GRIND GOVERNMENT TO A HALT IF WE DON'T HAVE QUALIFIED DIRECTORS AT THE HEAD OF THE AGENCIES.

THE DCS DIRECTOR NOMINEE - THIS IS THE BEST DECISION FOR ALL PARTIES.

IT WAS NOT THE RIGHT FIT.

AND I AM FOCUSSED OWN MAKING SURE THAT THIS AGENCY THAT SERVES THE MOST VULNERABLE POPULATION HAS THE RIGHT DIRECTOR.

>> AGAIN, IT SOUNDS LIKE AGAIN THE REPUBLICANS ARE SAYING THAT HIGH FIRED OPENLY GAY EMPLOYEES, THERE WERE INSUBORDINATION WHEN HE WAS A TRAINING OFFICER.

SOUNDS LIKE IN THERE COULD BEEN A BETTER VETTING OFFICE ON YOUR END.

IS THAT A VALID STATEMENT.

>> I AM NOT AWARE OF THE ALLEGATIONS THAT SENATOR HOFFMAN HAS MADE.

AND OUR THIS ACTION HAS NOTHING DO WITH ANYTHING COMING OUST SENATE COMMITTEE.

HE SAYS, AND REPUBLICANS SAY THIS IS WHY THIS COMMITTEE IS NEEDED BECAUSE THIS FURTHER VETTING IT NECESSARY.

>> THE NORMAL PROCESS THAT GUEDA TORIAL NOMINEES ARE ASSIGNED TO, THE VETTING HAPPENS AT THE BOARD WHERE THEY ARE AT.

IT HAPPENS THERE.

THIS IS THE SENATE PRESIDENT ALLOWING HOFFMAN TO CARRY OUT A VEN DATER.

>> A NOMINATION WAS REJECTED.

WENT THROUGH THE NOMINATION COMMITTEE, SHE IS REJECTED.

AGAIN - CONSIDERING THE NATURE OF THE LEGISLATURE AND ANNING TOIONISM.

WAS IT BEST TO SENT HER UP INTO THAT ENVIRONMENT.

>> SHE IS HIGHLY QUALIFY.

AND HAS A VAST RESUME.

AND WAS READY TO TAKE ON THE TACK.

IT IS UNFORTUNATE.

AND ARIZONANS ARE PAYING THE PRICE, WHICH SHE WAS DRAGGED THROUGH - HER REPUTATION, PROFESSIONAL EXPERIENCE, AND THE WAY THAT THEY JUST DISREGARDED THAT BECAUSE THEY DON'T LIKE HOW SHE HANDLED COVID IN HER COUNTY, WHICH SAVED LIVES.

I MET WITH PRESIDENT ROBINS YESTERDAY AND HE SAID HER ACTIONS IN HER COUNTY LED TO U OF A BEING ABLE TO OPEN THEIR CAMPUS.

NONE OF THAT WAS TAKEN INTO CONSIDERATION.

THIS WAS FOLKS THAT WERE SPENT ABOUT MASKS IS VACCINES, THEY TOOK IT OUT ON HER PERSONAL RECOMMENDATION.

WE WITHDREW HER NOMINATION AT HER REQUEST BEFORE THE SENATE VOTED AND THEY VOTED HER DOWN.

>> WE HAD REPUBLICAN LEADERS HERE ON, SAYING THAT SHE LIED.

SHE BASICALLY LIED IN HER TESTIMONY AND TRIED TO SHAME BUSINESSES FOR NOT FOLLOWING COVID PROTOCOLS, AND THEY BROUGHT CONCERN, RURAL AREA REPRESENTATIVES AND STUP LIKE THAT, DOES THAT MAKE SENSE, DO YOU UNDERSTAND WHERE THEY ARE COMING FROM.

>> SHE HAD A HUGE BACKING.

PRESS RELEASE THAT WE PUT OUT ANNOUNCING THAT WE HAD WITHDRAWN HER NOMINATION AT HER REQUEST HAD A PAGE OF INSTITUTIONAL SPOR THAT SHE HAD.

BUSINESS LEADERS, HEALTH LEADERS, COMMUNITY LEADERS WHO KNEW SHED PRIVATE THE LEADERSHIP NEEDED AT THE DEPARTMENT OF HEALTH.

I DON'T THINK THE CONCERN IS JUSTIFIED.

WE ARE IN A PUBLIC HEALTH EMERGENCY, AND THERE WAS A LACK OF LEADERSHIP FROM THE STATE.

AND A LACK OF LEADERSHIP FROM THE FEDERAL GOVERNMENT TO GET US THROUGH THAT SAFELY.

AND AS A PUBLIC HEALTH EXPERT SEE DID WHAT SHE NEEDED TO.

>> SOUNDS LIKE YOU MADE HER CASE BETTER THAN SHE HAD IN FRONT OF THE COMMITTEE, COULD SE BE BETTER PREPARED.

>> GLOTH THERE IS ANYTHING ANYONE COULD HAVE DONE TO PREPARE IMPINGE FOR THE EXPERIENCE IN FRONT OF THAT COMMITTEE, THEY ARE NOT TRYING TO VET PEOPLE.

THEY ARE TRYING TO PUBLICLY HUMILIATE THEM AND PUBLICLY HUMILIATE ME, AND IT IS UNFAIR TO - THE CITIZENS OF ARIZONA.

>> DEPARTMENT OF ADMINISTRATION, THAT'S BEEN DELAYED AS WELL.

YOUR THOUGHTS.

>> YOU KNOW, IT IS UNFORTUNATE THAT WHEN THE COMMITTEE CHAIR RGDS THAT THE VOTES WERE THERE TO GET HER THROUGH, AND HE DECIDED TO PULL THE VOTE.

I'M CONFIDENT THAT SHE IS THE RIGHT PERSON TO LEAD THE DEPARTMENT OF ADMINISTRATION, AND THAT WILL GET HER NOMINATION THROUGH.

>> LAST POINT ON ALL OF THIS.

ARE YOU WITH NOMINEES THAT APPEAR IN FRONT OF THE COMMITTEE AND BE CONFIRMED BY THE SENATE.

ARE YOU CHANGING THE TACK.

>> WE ARE WORKING WITH ALL OF THEM PREPARED.

AND WE WERE BEFORE.

THE KIND OF PREPARATION WE ARE DOING IS DIFFERENT.

BASED ON WHAT WE ARE SEEING BASED ON THE TWO COMMITTEES.

>> A PUBLIC AND PROFILE WAS QUOTED SAYING ANY KIND OF VETO DOESN'T MEAN THAT REPUBLICANS IN THE SENATE AND LEGISLATURE DIDN'T ACHIEVE THEIR GOALS.

DOES THAT MAKE SENSE TO YOU.

>> WELL, I AM NOT SURE WHAT GOALS THEY ARE TRYING TO ACHIEVE.

IF THEY WANT TO WORK ON LEGISLATION, ADDRESSING THE HOUSING CRISIS, WATER CRISIS, CRISIS IN PUBLIC EDUCATION, MY DOOR IS OPEN.

>> BUT YOUR VETO WORKS AS WELL.

SOUND LIKE IF THEY SEND THE STUFF UP THERE, YOU'LL SEND IT BACK.

>> IF WE ARE NOT WORKING ON THE ISSUES THAT MATTER, YES.

>> WE BRING IT UP.

YOU PLEDGED 500,000 TO FLIP THE LEGISLATURE TO DEMOCRATS BECAUSE, WHAT, YOU THINK OBVIOUSLY THAT IT CAN WORK BETTER.

>> I THINK I CAN WORK BETTER WITH A GOVERNING MAJORITY, WHETHER IT'S REPUBLICANS COMING TO THE TABLE AND WORKING TOGETHER OR DEMOCRATS - I'M OKAY WITH EITHER.

BUT WE HAVE PRESSING ISSUES WE NEED TO ADDRESS, AND THIS LEGISLATURE HASN'T SHOWN THEY ARE WILLING DO THAT.

THE 500,000 TO GET DEMOCRATS ELECTED.

IS THAT A WISE CHOICE.

YOU NEED VOTES TO GET THE BUDGET.

WE'LL GET TO THAT IN A SECOND.

WHEN IT COMES AROUND AND REAL HORSE TRADING OCCURS, YOU'LL NEED VOTES.

AND PROBABLY IN SWING DISTRICTS WHERE THEY ARE TARGETED.

IS THAT A WISE MOVE.

>> AS GOVERNOR, I'LL USE THE TOOLS I HAVE.

>> AGAIN, DOES IT MAKE SENSE FOR TO YOU DO THAT WHEN YOU NEED SOME OF THOSE VOTES.

>> I AM USING THE TOOLS THAT I HAVE AT MY DISPOSAL.

>> THE LAST POINT ON THAT.

REPUBLICANS SAY SO MUCH FOR WORKING TOGETHER, YOU ARE GOING AFTER THEM.

>> I CONTINUE TO BE WILLING TO WORK WITH THEM.

AND, YOU KNOW, IF THE SHOE WERE ON THE OTHER FOOT THE SAME THING WOULD HAPPEN.

>> $500,000, WHERE IS IT COMING FROM.

>> MONEY THAT I RAISED IN THE LAST COUPLE OF MONTHS.

>> INAUGURATION FUND MONEY.

>> NO.

>> WHAT IS GOING ON WITH THAT.

PEOPLE ARE PUTTING IT IN THE PROTOCOL FUND.

THEY WANT TRANSPARENCY, WHAT IS GOING ON WITH THAT.

>> WE RAISED MONEY THE SAME WAY MY PREDECESSORS RAISED MONEY.

M.S.C.

4 - IT'S NO DIFFERENT.

WE HAVE GONE ABOVE AND BEYOND IN TERMS OF DISCLOSURE OF THE FUNDS.

WHERE THEY CAME FROM, WHAT WE SPENT IT ON.

EVERYTHING THAT WAS PUBLIC DOLLARS IS RAISED IN THE STATE FUND IS IN THE PROTOCOL FUND.

>> NOT THE KATY HONS, BUT THE STATE PROTOCOL.

IT IS WHERE PEOPLE WANT IT TO BE.

>> RAISED IN THAT FUND, YES.

>> I'M NOT SURE ABOUT THE PROTOCOL, WE'LL MOVE ON.

THE BUDGET - THEY SENT IT TO YOU, GOT IT DONE, VOTED YEA.

AND YOU SAID NO.

WHY?

>> WELL, I PUT OUT MY BUDGET THE FIRST WEEK OF SESSION AS REQUIRED BY STATUTE.

LAYING OUT MY PRIORITIES AND THAT I HEARD FROM ARIZONIANS OVER THE LAST YEAR CAMPAIGNING OUR WATER CRISIS, HOUSING CRISIS, EDUCATION.

AND THE REPUBLICANS RIGHT AWAY SAID NO, WE ARE NOT GOING TO NEGOTIATE ANY OF THOSE THINGS ABOUT YOU.

IT'S OUR WAY TORE THE HIGHWAY -- WAY OR THE HIGHWAY.

THE BUDGET IS A NEGOTIATION.

I DON'T EXPECT TO GET EVERYTHING I LAID OUT.

BUT WE HAVE TO COME TO AN AGREEMENT ON THINGS THAT ARE PRIORITIES, AND WHAT ARIZONA NEEDS, THE BUDGETED THAT THEY PASSED DOES NOT REINCORRECT THE PRIORITIES.

>> THEY SAY, AND AGAIN ON THIS PROGRAM.

THAT THIS IS A SKINNY BUDGET.

A BASELINE BUDGET.

SOMETHING TO GET DONE IN CASE YOU KNOW WHAT BREAKS THROUGH.

GOVERNMENT STAYS OPEN.

THERE'S 1.8 BILLION THAT NEEDS TO BE HAGGLED OVER, YOU CAN HAGGLE ALL YOU WANT WE NEED TO HAVE A BASELINE.

>> THIS IS NEVER HOW THIS WORKS.

IT'S NOT HOW IT WORKS.

IF I SIGN A BUDGET THAT THEY SEND ME SAYING THAT THIS IS THE BASELINE, WE'LL MOVE FORWARD.

THERE'S NOTHING THAT HOLDS THEM TO ACTUALLY WORKING ON THE ADDITIONAL PRIORITIES WITH THE REMAINING FUNDS.

THAT IS NOT HOW THIS WORKS, WE'LL WORK ON A BUDGET TOGETHER.

AND GET IT DONE.

>> WHY DO YOU THINK THEY PASSED A BUDGET.

>> BECAUSE EVENTUALLY, IF THEY ARE THE ONES REFUSING TO NEGOTIATE WITH ME ON A BUDGET.

THEY CAN USE THAT TO TURN THE BLAME ON MY OFFICE FOR CAUSING A GOVERNMENT SHUTDOWN, I'M HOPING THAT DOESN'T HAPPEN, WE HAVE A LOT OF TIME TO GET IT DONE.

IT'S GONE DOWN TO THE FIRE A LOT OF TIMES IN THE LAST FEW YEARS.

I'M CONFIDENT WE CAN GET IT DONE.

THEY ARE SAYING IF THE GOVERNMENT SHUTS DOWN IN JULY IT'S ON U.

YOU.

>> THEIR ACTIONS IN PASSING THE BUDGET SAYING WE NEED A BASELINE PROJECT IS UNPRECEDENTED IT'S NOT HOW THE PROCESS WORKS.

>> OO I'M HEARING FROM REPUBLICAN LAWMAKERS THAT YOU ACT LIKE YOU HAD A MANDATE AND YOU WAN BY 17,000 VOTES AND LEGISLATURE IS REPUBLICAN LED IN BOTH CHAMBERS, COMMENT ON THAT, PLEASE.

>> HERE IS WHAT I KNOW.

I SPENT A YEAR AND A HALF CAMPAIGNING FOR THE OFFICE AND I SPOKE TO REPUBLICANS, DEMOCRATS, INDEPENDENCE.

AND THEY WERE FOCUSSED ON FUNDING PUBLIC SCHOOLS, MAKING SURE KIDS HAVE QUALIFIED TEACHERS IN THE CLASSROOM, THAT WE DO SOMETHING TO ADDRESS THE STATE WATER CRISIS, THAT WE HAVE HEALTH CARE, THAT WE HAVE HOUSING, THAT PEOPLE CAN AFFORD.

I KNOW THAT THESE REPUBLICANS AND THE LESS LAT TOUR ARE HEARING THE SAME FROM THEIR CONSTITUENTS.

THEY ARE ALL THE SAME.

THEIR BUDGETS DOESN'T ADDRESS THE ISSUES.

I KNOW THAT ARIZONANS ARE TIRED OF PARTISAN POLITICS AND THEY WANT TO PUT IT ASIDE.

THAT IS WHAT I'M ASKING THEM TO DO AND THAT'S THE MANDATE WE HAVE.

I DON'T CARE HOW MANY VOTES WE RUN BY.

THEIR MARGINS IN THE LEGISLATURE ARE THE CLOSEST IN A WHILE.

WE NEED TO WORK TOGETHER TO GET IT DONE.

>> IS THERE SIGNS OF THE ICE CRACKING OR IS IT STILL WINTER.

MY OFFICE CONTINUES TO REACH OUT AND MET WITH LEGISLATURES, I'M MEETING WITH REPUBLICAN LEGISLATURES AND HOPE WE CAN COME TOGETHER.

>> YOU MOVED THE BOARD OF THE ARIZONA MEXICAN COMMISSION, WHY.

>> THIS IS A BOARD THAT IN ITS ENTIRETY SERVES AT THE PLEASURE OF THE GOVERNOR, WE ARE REVEALING ALL ACCORD AND COMMISSIONIZE.

MANY TERMS ARE FIXED.

IT'S THE FIRST BOARD, BUT NOT THE LAST.

WE'LL REVEAL THE MEMBER SHX WE EXTENDED THE INVITATION FOR PEOPLE TO REAPPLY.

BUT THERE IS OTHER FOCUS THAT WE WANT TO REACH OUT TO APPLY.

SO THAT THE BOARD MOVING FORWARD IS MADE UP OF FOLKS WHO ARE FOCUSSED ON MY ADMINISTRATION DECISION.

>> YOUR ADMINISTRATION'S VISION, AND OTHERS SAY YOU ARE USING A LOT OF INSTITUTIONAL KNOWLEDGE FOR THOSE JET SONNED HERE.

DO THEY HAVE A POINT.

THERE ARE SOME AFFECTION I HOPE WILL REPLY AND KEEP ON THE BOARD.

>> IS IT A RESPONSE FOR THE PREVIOUS GOVERNOR PUT ON SUBMISSIONS.

IS THIS A WAY, SAYING THIS IS MY GROUP NOT YOURS.

>> AND I'M THE GOVERNOR, AND THE PREROGATIVE TO DO THAT.

>> LAST QUESTION ON THIS.

DID YOU HEAR ANYTHING FROM MEXICAN LEADERS, FROM MEXICO LEADERS WHEN YOU WENT DOWN THERE OR TALKED TO THEM.

HAVE YOU HEARD FROM THEM REGARDING THE COMMISSION, AND THINGS NEEDING TO CHANGE.

>> NOT SPECIFICALLY ABOUT THE COMMISSION.

I'M ENCOURAGED BY DISCUSSIONS WITH THE GOVERNOR LAST FRIDAY AND PREVIOUS TO THAT.

HE'S LOOKING FORWARD TO RE-ESTABLISHING A RELATIONSHIP WITH ARIZONA THAT STEAMS NOT TO HAVE BEEN THERE IN THE LAST FEW YEARS, AND WE HAD A LOT OF CONVERSATION ABOUT CROSS BORDER INFRASTRUCTURE PROJECTS THAT WILL STRENGTHEN INTERSTATE COMMERCE BETWEEN ARIZONA, AND MEXICO AS YOU KNOW IS AN IMPORTANT TRADING PARTNER.

>> QUICKLY, 210 MILLION IN COVID RESPONSE GRANTS BLOCKED BY YOU.

WHY?

>> WELL, THIS IS A MESS THAT WAS CREATED BY THE PREVIOUS ADMINISTRATION ON THE WAY OUT THE DOOR.

WE ARE HAVING TO CLEAN IT UP.

THESE GRANTS WERE ISSUED OUTSIDE OF A PROCUREMENT WAIVER, AND WE ARE TRYING TO PROTECT THE ORGANIZATION THAT RECEIVED THE GRANTS FROM HAVING THE FEDERAL MONEY CLAWED BACK.

WE ARE LOOKING FOR WAYS TO WORK WITH THE ORGANIZATIONS AND THAT IT GETS TO THEM IN A WAY THAT IS LEGAL.

>> WITH THE INSTITUTIONAL KNOWLEDGE, AND THE MEXICO ADMISSIONS, SOUNDS LIKE GOOD PROGRAMS HAVE BEEN TRAMP PELLED UNDER FOOT.

>> WE ARE WORKING WITH ORGANIZATIONS THAT WERE FUNDED MAKING SURE IF THEIR PROGRAMS MEET THE CRITERIA FOR THE DOLLARS, THEY GET THE DOLLARS.

AND MAKE SURE IT'S NOT CLAWED BACK FROM THEM.

>> ANOTHER ACTION IS ENDING THE GRANT PROGRAM.

FOR COVID FOR SCHOOLS.

REJECTING PROTOCOLS.

YOU MIX THAT.

>> THIS IS FUNDING THAT THE TREASURY SAID YOU ARE NOT USING IT IN LINE WITH WHAT IT WAS ISSUED FOR.

SPECIFICALLY GIVEN TO SCHOOLS THAT REFUSED TO IMPLEMENT HEALTH AND SAFETY MEASURES.

AND AGAIN.

WE WANT TO PROTECT THE SCHOOLS FROM HAVING THAT FEDERAL MONEY CLAWED BACK AND TRY TO ISSUE IT IN A WAY THAT MEETS THE CRITERIA SET FORTH BY THE FEDERAL GOVERNMENT SO THAT TREASURY DOESN'T SAY WE ARE TAKING THE MONEY BACK, ARE THEY SAYING THAT.

>> THEY DID.

>> ARE THEY PURSUING IT.

>> THAT'S WHY WE TOOK THE ACTION.

>> DO YOU THINK YOU'LL HAVE THEM CLAW THIS BACK.

>> WE ARE HOPEFUL, YES.

IN TERMS OF WATER, WHAT IS GOING ON - OBVIOUSLY YOU ARE GOALING WITH CALIFORNIA, AND THE FEDS, WE'LL COME DOWN WITH A HAMMER, THE STATES COULDN'T AGREE.

CALIFORNIA COULDN'T AGREE, WHERE ARE WE IN ALL OF THIS.

>> I THINK WE ARE SEEING HOS ON THE SEVEN STATES COMING TOGETHER.

I'M HELPFUL ABOUT THAT.

SPECIFICALLY WITH THE COLORADO RIVER.

WE NEED TO TAKE AGGRESSIVE ACTION TO MODERNIZE THE GROUNDWATER MANAGEMENT ACT.

I ISSUED AN ORDER CREATING A POLICY TO CREATE LEGISLATION TO DO THAT.

THERE'S LEGISLATION MOVING THROUGH TO PROVIDE MORE FLEXIBILITY THAN ACTUAL MANAGEMENT AREAS THAT SOME FOLKS PUSHED BACK ON.

WE NEED TO MANAGE OUR GROUNDWATER.

COLORADO'S PART OF THE EQUATION, IT'S A PIECE OF IT.

I HOPE I CAN GET IT DONE.

>> DO YOU SEE THAT AS A WAY OF BRIDGING GAPS WITH THE LEGISLATOR, CHASMS WITH REPUBLICANS.

>> WATERS IS NOT A PARTISAN ISSUE, AND EFFECTS ALL OF US, WE NEED THE LEADERSHIP TO TAKE MEANINGFUL ACTION.

>> LAST QUESTION, WHAT SURPRISED YOU THE MOST SINCE TAKING OFFICE?

>> I DON'T KNOW ABOUT SURPRISE, BUT I - THE OPPORTUNITY THAT WE HAVE TO MAKE A DIFFERENCE IN THE LIVES OF ARIZONIANS - I MEAN, THAT'S WHY I'M IN OFFICE, I RAN FOR OFFICE BECAUSE I'M A SOCIAL WORKER AND WAS FRUSTRATED BY LACK OF LEADERSHIP.

AND THE ABILITY I HAVE IN THE GOVERNOR'S OFFICE, THAT IS GREATER THAN WHEN I WAS IN THE LEGISLATURE OR SECRETARY OF STATE IS HUGE.

EVERY DAY I WALK INTO HIGH OFFICE GRATEFUL FOR THAT OPPORTUNITY.

>> GOVERNOR KATY HOBBS, THANK YOU FOR JOINING US.

>> THANK YOU.

[ ♪ MUSIC ♪ ] SNOOCH THAT IS IT FOR NOW, I'M TED SIMONS, THANK YOU FOR JOINING US, YOU HAVE A GREAT EVENING.