SIGN UP FOR BREAKING NEWS Get local stories sent straight to your inbox as news breaks. Submit Privacy Notice

President Trump appoints Gov. Fallin as co-chair of the Council of Governors Share Shares Copy Link Copy

Hide Transcript Show Transcript

WEBVTT >> WE ARE IN THE MIDDLE OF WHAT MIGHT BE ONE OF THE BUSIEST LEGISLATIVE SESSIONS OUR STATE HAS EVER SEEN. OUR LAWMAKERS FIGHTING TO FILL ANEARLNEARLY $900 MILLION BUDGET DEFICIT. 2018 HAS LEADERSHIP CHANGES IN STORE, INCLUDING A GUBERNATORIALRACE. WHO BETTER TO COVER THE RACE ANDTHE GUBERNATORIAL GAMUT THAN GOVERNOR MARY FALLIN. IT'S BEEN A WHILE SINCE WE HAVE SEEN YOU IN STUDIO. I WANT TO START WITH EDUCATION FUNDING. IT IS APRIL 5. APRIL 1 THE STATE WAS SUPPOSED TO AGREE ON A BUDGET PLAN FOR EDUCATION. IT'S LAW SIGNED BY YOUR PREDECESSOR. APRIL IS THE DAY. THIS HAS FAILED 12 TIMES NOW. IS THIS NOT OUR LAWMAKERSES BREAKING THE LAW?>> THEY PUT IT INTO LAW WHEN I WAS LIEUTENANT GOVERNOR SAYING WE SHOULD BE ABLE TO TELL TEACHERS AND SCHOOLS SO THEY CANDO THEIR CONTRACTS BY APRIL 1 AND HAVE MORE TIME TO BE ABLE TOHIRE TEACHERS AND KNOW HOW MUCH MONEY THEY WILL HAVE, WE WOUND FUND EDUCATION. THE PRACTICALITY IS THE BUDGETS GET DONE AT THE END OF MAY. THE LEGISLATURE HAS NEVER MET THE DEADLINE. FOR THE SCHOOLS, IT MAKES A HARDSHIP ON THEM. LAST YEAR WE HAD A $1.3 BILLION BUDGET SHORTFALL. IT'S BEEN A VERY CHALLENGING TIME TO BE ABLE TO FIGURE OUT WHO DO YOU CUT, WHO DO YOU APPROPRIATE MONEY TO AND WHERE ARE YOU GOING TO FIND THE REVENUE. IT'S NOT EASY. >> I'M SURE IT'S NOT EASY. BUT HOW ARE THERE NOT CONSEQUENCES FOR LAWMAKERS?IF YOU SAY APRIL, IT'S KIND OF APRIL FOOLS. >> THERE ARE NO CONSEQUENCES IN THE LAW. BUT IT IS A LAW. THE LEGISLATURE HASN'T MADE THE DEADLINE. BUT IT IS CHALLENGING, ONCE AGAIN, WHEN YOU'RE TRYING TO BUILD CONSENSUS AND IT IS HARD BECAUSE I'VE BEEN TRYING TO GET THE LEGISLATURE TO BUILD CONSENSUS ON HOW ARE WE GOING TOPRIORITIZE OUR SPENDING, WHAT TYPE OF REVENUE ARE WE GOING TO HAVE, WHERE ARE WE GOING TO CUT.WE'RE STILL IN THAT PROCESS RIGHT NOW. THAT'S WHY LAST WEEK I SAID, YOUKNOW, WE'RE HALFWAY THROUGH THE LEGISLATIVE PROCESS. WE HAVE ABOUT SEVEN WEEKS TO GO.IT'S TIME TO START MAKING DECISIONS. I UNDERSTAND IT'S TOUGH ON THE LEGISLATORS. >> THE OVERALL BUDGET DEFICIT, HAVE TO FILL $900 MILLION SOMEHOW. I KNOW THAT YOU PROPOSED A TAX ON 164 DIFFERENT SERVICES. EVERYTHING FROM DOCTOR'S FEES TOLEGAL FEES, EVEN TATTOOS AND PETGROOMING SERVICES. IS THAT WHERE YOU STAND ON WHAT IS THE MOST EFFECTIVE PLAN. >> THERE'S BEEN DEMAGOGUING AND MISINFORMATION. WHAT I PROPOSE IS THAT WE HAVE ATAX STRUCTURE. I HAVE A CHART I'LL SHOW YOU, IFYOU CAN. IT SHOWS THAT OUR TAX CODE WAS DEVELOPED IN 1933 IN OUR NATION.I DON'T SEE THE CHART YET. THERE IT IS. TAX CODE. >> SWITCH WITH THAT. EXPLAIN WHAT WE ARE SEEING ON THE GRAPHS. >> THIS IS A PICTURE OF THE UNITED STATES. WHAT IT SHOWS IS THAT OUR CODE WAS DEVELOPED IN 1933. TEXAS DEVELOPED THEIR TAX CODE IN 1966. YOU CAN SEE THE VARIOUS YEARS THAT STATES IMPLEMENTED A TAX CODE. BUT THE NEXT CHART I WANT TO SHOW IS OUR GOODS AND SERVICES. WE HAVE CHANGED OUR ECONOMY AS THE NATION HAS, 1929 A GOOD BASESERVICE, WHICH MEANS A LOT OF MANUFACTURING. AS TECHNOLOGY HAS COME ON SINCE THE 1920s, YOU CAN SEE THE SERVICE INDUSTRY HAS OVERTAKEN THE GOODS INDUSTRY, WHICH IS WHAT WE TAX. WE TAX GOODS, BUT WE DON'T TAX SERVICES. I PROPOSE TO THE LEGISLATURE THAT WE FIX A STRUCTURAL PROBLEMIN OUR BUDGET. IT IS NOT WORKING, IT IS BROKEN.IT'S BEEN THIS WAY FOR MANY DECADES. GOVERNOR KEATING TRIED TO DO THESAME THING. NOT THE FIRST GOVERNOR TO PROPOSE THAT WE HAVE A STRUCTURAL PROBLEM IN OUR BUDGET. AND THAT WE LOOK AT BROADENING OUR SALES TAX BASE ON CONSUMPTION OF GOODS BECAUSE OURTAXES -- THINGS WELL SELL, MORE SERVICE -- WE SELL MORE SERVICESTHAN GOODS. LOWER THE RATE, BRING MORE STABILITY TO THE SYSTEM. I ALSO TALKED ABOUT HOW WE COULDELIMINATE GROCERY SALES TAX. PEOPLE HAVE TO EAT. IT'S A CORE FUNCTION OF LIFE, GROCERIES AND FOOD. WE'D BE ABLE TO SAVE A FAMILY OFFOUR OVER $680. LOTS OF FIGURES OUT THERE. >> $680. >> FOR FAMILY OF FOUR. FOR A SINGLE PERSON, ABOUT $350.AND THEN WE TALKED ABOUT ELIMINATING THE CORPORATE INCOMETAX BECAUSE WE GET VERY LITTLE REVENUE. A LITTLE OVER $100 MILLION ON THAT. BUT IT'S VERY UNSTABLE BECAUSE COMPANIES CAN CARRY BACK AND FORWARD LOSSES FOR 15 YEARS. IT'S UNRELIABLE. I TALKED ABOUT A SALES TAX ON SERVICES BECAUSE POOR PEOPLE DON'T USE AS MANY SERVICES AS PEOPLE THAT HAVE MORE INCOME. >> THE TAX ON THE SERVICES, YOU KNOW, THAT'S YOUR PLAN OF ACTIONTHAT YOU HAVE KIND OF DELIVERED TO US HERE. IT'S BEEN MET WITH STIFF OPPOSITION TOO. LIEUTENANT GOVERNOR TOM LAMB RESIGNED FROM YOUR CABINET >> WHERE IS HIS PLAN?>> I HAVEN'T SEEN A PLAN. BUT STEPPED DOWN FROM YOUR CABINET BECAUSE OF THIS. DO YOU EXPECT YOUR PLAN TO COME TO FRUITION AND HAVE YOU SEEN THIS DIVISIVENESS?>> THERE ARE SOME THAT SUPPORT MY PLAN. THE OTHER PART, WE SHOULD LOOK AT SALES TAX EXEMPTIONS. WE EXEMPT 150 DIFFERENT ITEMS SPECIAL INTEREST LOBBY GROUPS HAVE COME TO THE CAPITOL AND SAID LET'S EXEMPT TATTOOS, LET'SEXEMPT CAR DETAILING, EXEMPT DIAPER SERVICE. PEOPLE WANT TO USE CLOTH DIAPERS. EXEMPT THOSE THINGS. THERE'S 150 ITEMS LIKE THAT. I CHALLENGED THE LEGISLATURE TO ALSO LOOK AT SALES TAX EXEMPTIONS AND WOULD YOU RATHER PAY TEACHERS, WOULD YOU RATHER HAVE HIGHER PATROLMEN ON THE HIGHWAYS, WOULD YOU RATHER HAVE FUNDS IN THE EMERGENCY MANAGEMENT AGENCY THAT TAKES CARE OF TORNADOES, WHICH HAS BEEN CUT BY 40%. I ALSO SAID WE NEED TO LOOK AT INCENTIVES SUCH AS PRODUCTION TAX INCENTIVES, SPECIAL INTERESTGROUPS SAID WE WANT INCENTIVES. SOME ARE VERY GOOD. MANY OF THEM CREATE JOBS, CREATEINVESTMENT. WE WANT TO KEEP THOSE THINGS SO WE CAN BE COMPETITIVE AS A STATEWITH OTHER STATES. BUT THERE'S A BROAD RANGE OF THINGS. I POUND THE TABLE AND SAY, HERE'S IDEAS FOR YOU. I PERFECTLY UNDERSTOOD THAT PEOPLE WOULDN'T TAKE MY BUDGET SALE AND PASS IT, LET'S GET IT DONE. BUT SOMEONE HAS TO START THE DISCUSSION. IF YOU DON'T PUT OUT ANY IDEAS, THAT'S NOT LEADERSHIP. >> YOU HAVE TO START SOMEWHERE. WANT TO TALK ABOUT THEFUND. >> ABSOLUTELY. >> NOW IT'S ESSENTIALLY BEEN DRAINED. WE'RE TALKING $240 MILLION. REPRESENTATIVE SCOTT INMAN SAID THEY WERE SURPRISED. >> THE TREASURER AND A.G. SAID IT'S LEGAL. >> DID YOU KNOW THE RAINY DAY FUND WOULD BE DRAINED?>> I DIDN'T KNOW THAT IT HAD BEEN -- THE MONEY HAD BEEN TAKENOUT. THE FACT OF THE MATTER IS, WHEN WE HAD A REVENUE FAILURE IN MARCH AND WE HAD TO CUT SPENDINGACROSS THE BOARD OF ALL AGENCIES, THERE ARE SOME AGENCIES LIKE DEPARTMENT OF HUMAN SERVICES THAT LAST YEAR THE LEGISLATURE ONLY APPROPRIATED 10 MONTHS OF OPERATION. IF WE WANT TO TAKE FOOD TO SENIORS AND ISSUES LIKE THAT, WEHAVE TO MAKE UP THAT MONEY, WHICH IS ABOUT $34 MILLION IN A SUPPLEMENTAL. FIND THE MONEY WITH THE REV FAILURES, IS TO BE ABLE TO TAKE IT OUT OF POCKETS OF MONEY THAT WE HAD. THAT'S WHAT A RAINY DAY ACCOUNT IS FOR. IT'S FOR HARD TIMES. BY LAW, THE RAINY DAY FUND HAS TO BE REFILLED AND AS WE ALL KNOW, APRIL 15 IS THE TAX DAY. SO AS PEOPLE PAY IN THEIR TAXES,THAT FUND WILL REPLENISH AND IT WILL BE PUT BACK IN THERE. BUT IT IS LEGAL, ACCORDING TO THE A.G. AND ACCORDING TO THE TREASURER. BACK TO THE RAINY DAY FUND. IN 2009, WE WENT THROUGH THE NATIONAL RECESSION, NATIONAL ECONOMY CRASHED. WHEN I CAME INTO OFFICE, WE WERESTILL GOING THROUGH THAT BIG CRASH. BY 2013, WE WERE ABLE TO BUILD UP A RAINY DAY ACCOUNT TO $530 MILLION IN SAVINGS, THANK GOD. BY 2014 -- WE HIT ANOTHER DOWNTURN. I'M GOING TO SHOW YOU TWO MORE CHARTS. >> REALLY QUICKLY. WE HAVE TO GET TO OTHER TOPICS. >> THIS CHART SHOWS THESE ARE THE AGENCIES THAT HAVE ALREADY HAD CUTS OVER THE PAST YEARS FROM 2009 WHEN WE HIT THE NATIONAL SESSION, GOVERNOR HENRYHAD TO A CUT A BILLION. THERE ARE AGENCIES THAT HAD 30% TO 40% CUTS. ON DOWN, THERE'S 10, 20 BELOW. SO KEY AGENCIES -- EMERGENCY MANAGEMENT HAD OVER 40% CUT. TOURISM DEPARTMENT, MANPOWER -->> ACROSS THE BOARD. >> YOU CAN SEE MANY CUTS. THE LAST GRAPH I WANT TO SHOW YOU IS THAT, WITH THE $900 MILLION SHORTFALL, IF WE DON'T INVEST IN OUR STATE AND FUND EDUCATION, FUND TEACHERS, FUND CORRECTIONS, PUBLIC SAFETY,ROADS AND BRIDGES, IF WE KEPT -OUR STATE AGENCIES TOP PRIORITIES OF OUR STATE EDUCATION, HUMAN SERVICES, MENTAL HEALTH, ONE MORE -- INCH THAT UP A LITTLE BIT ON THE SCREEN. IF WE -- TRANSPORTATION. IF WE KEPT THOSE FLAT AND HAD NOMORE CUTS -- HIGHER EDUCATION HAD 16% CUT LAST YEAR. KEPT IT ALL FLAT, YOU WOULD HAVETO CUT ON THAT CHART ALL AGENCIES BELOW US -- SHOW THE CHART ONE MORE TIME. YOU'D HAVE TO CUT THE DIFFERENT AGENCIES TO ZERO. THERE'S 60. THAT'S EVEN THE HOUSE, THE SENATE, THE GOVERNOR'S OFF. YOU WOULD STILL HAVE A $19 MILLION SHORTFALL. THE HOUSE IS ON FIRE. LET'S FIX THE BUDGET. MAKES TOUGH DECISIONS. >> YOU'VE CLEARLY THOUGHT ABOUT THIS. YOU'VE DELIVERED A PLAN. YOU BROUGHT THE GRAPHS. I DO OUT OF FAIRNESS WANT TO GETTO VIEWER QUESTIONS. A LOT OF PEOPLE CHIMED IN. THE FIRST ONE IS FROM ROB INTERESTED IN SPECIAL ELECTIONS.WE HAVE A COUPLE OF THEM THIS YEAR. WHY SHOULD THE TAXPAYERS HAVE TOPAY FOR A SPECIAL SESSION AS THEGOVERNOR HAS MENTIONED IF THE LEGISLATOR DOES NOT PASS A BUDGET?WHY DO THEY STILL GET PAID FOR NOT DOING THEIR JOB?>> I THINK THE LEGISLATURE WILL TRY SEND ME A BUDGET. THE QUESTION IS THERE THEY FUND EDUCATION, TRANSPORTATION, PUBLIC SAFETY, OR WILL THEY CUT THEM?THE OPTIONS I PRESENTED TO THE LEGISLATURE IS THERE'S THREE DIFFERENT BUDGETS. YOU CAN CUT SPENDING 14% ACROSS THE BOARD, WHICH IS ABOUT A $300 MILLION-PLUS CUT TO EDUCATION. HUGE CUTS TO PATROL, MENTAL HEALTH SERVICES, DEPARTMENT OF HUMAN SERVICES, ELDERLY. YOU CAN MAKE THOSE CUTS OR YOU CAN USE A COMBINATION OF GETTINGRID OF SOME OF OUR TAX INCENTIVES, TAX CREDITS, LOOKINGAT SALES TAX EXEMPTIONS. STILL MAKE -- CUTTING ABOUT 9%. WHICH WOULD BE TOUGH. OR YOU CAN LOOK AT BROADENING OUR SALES TAX BASE, A CONSUMPTION BASE, LOWERING THE BASE BECAUSE IT GENERATES MORE REVENUE. LOOK AT THE SALES TAX EXEMPTION,LOOK AT THE INCENTIVES, OFF-THE-TOP MONEY GOING TO DIFFERENT THINGS. WE CAN CREATE A SOUND FINANCIAL BUDGET SO THAT WE DON'T HAVE ANYUPS AND DOWNS ALL THE TIME. >> KATE SENT ME A TWEET. HE SAID HOW DO WE FIX OUR PUBLICSCHOOL SYSTEM?WHERE HAS THE MONEY FROM THE LOTTERY GONE?WHY NOT USE LIKE TEXAS?>> ON THE LOTTERY, SAID IT WAS GOING TO BRING $300 MILLION TO $500 MILLION ESTIMATE. I THINK IT'S $60 MILLION THAT ITBRINGS IN. IT NEVER DID DO WHAT PEOPLE SAIDIT WAS GOING TO DO. EDUCATION IS A PRIORITY FOR US. WE HAVE BEEN TALKING ABOUT TEACHER PAY RAISES. I HAD MY SPEECH. BUT UNTIL WE FIX STRUCTURAL CHALLENGES, WE WON'T BE ABLE TO DO THINGS WE WANT TO DO THAT AREIMPORTANT. I HAVE SAID WE CAN'T HAVE FOUR-DAY SCHOOL WEEKS. WE HAVE TO HAVE FIVE-DAY. A BUSINESSMAN TOLD ME, I'D LOVE TO COME TO YOUR STATE. IT'S GREAT. YOU HAVE DONE ALL THE RIGHT THINGS. A GREAT PLACE TO LIVE, GREAT QUALITY OF LIFE. HE SAID, YOU'RE SO POOR, YOU ONLY TEACH YOUR KIDS FOUR DAYS AWEEK. I SAID, NO, THAT'S JUST IN RURALAREAS. BUT THE PERCEPTION IS OUT THERE.BACK TO THE SPECIAL SESSION -- WHAT I SAID WAS IF OUR LEGISLATURE DOESN'T FUND THE CORE SERVICES APPROPRIATELY, FIXOUR BUDGET, WE'RE NOT HAVING THESE UPS AND DOWNS AND UNCERTAINTY, WHICH IS HORRIBLE, I CAN CALL A CONCURRENT SPECIAL SESSION, WHICH MEANS YOU HAD A SPECIAL SESSION DURING SESSION AND IT SAVES MONEY -->> THIS ONE FROM MIKE BRADLEY. HE WANTS TO KNOW WHAT PLANS ARE BEING DISCUSSED TO DIVERSIFY REVENUE SO WE DON'T RELY ON OIL AND GAS SO MUCH?>> WE HAVE DONE A REALLY GOOD JOB OF DIVERSIFY OUR ECONOMY. DURING THE 1980s, I LOST MY JOB -- I WORKED FOR AN OIL COMPANY. THE STATE WENT THROUGH A HUGE DOWNTURN. THEY RAISED TAXES IN THE 1980s BECAUSE THE STATE WAS IN HORRIBLE SHAPE. LOOKING AT HOW WE STRUCTURE OUR TAX CODE, LOOKING AT THE DIFFERENT INDUSTRY, INCENTIVES THAT WE GIVE THEM, TWEAKING IT, WHICH WE ARE SEEING TWEAKING GOING ON IN THE WIND INDUSTRY. WE PASSED INCENTIVES. WE ARE NUMBER THREE IN NATION WITH WIND PRODUCTION. WE HAVEN'T SEEN THE FARM FAILURES, HAVEN'T SEEN THE BANK FAILURES LIKE WE HAVE IN THE 1980s. DIVERSIFY OUR ECONOMY, BUT WE'VEGOT TO DO MORE. >> MORE WORK TO BE DONE. 2018 IS A BIG YEAR. WE HAVE TALKED TO MICK CORNETT, TODD LAMB, HINTING AT A POSSIBILITY OF RUNNING. SCOTT INMAN SAID HE'S 95% IN AT THIS POINT. WHAT'S YOUR PREDICTION?ALSO, WHAT DOES THE FUTURE HOLD FOR YOU?>> MY HOPE IS THAT WE'LL BE ABLETO STRUCTURALLY FIX THE FOUNDATION OF OUR BUDGET SO THATWHENEVER THE NEXT GOVERNOR COMESIN IN 2018, THEY WON'T HAVE SOMEOF THE ISSUES I WAS LEFT WITH. THEY OUGHT TO PRAY TO GOD THAT IGET SOME OF THESE THINGS FIXED BECAUSE NEXT YEAR WILL BE EVEN WORSE. I HAVE TOLD THE LEGISLATURE IF WE DON'T FIX THESE THINGS THIS YEAR, NEXT YEAR, ELECTION YEAR, IT WILL BE EXTREMELY DIFFICULT FOR THE CANDIDATES AND THE CANDIDATES WILL HAVE TO PUT OUT A PLAN. >> DO YOU ENDORSE -->> I'M NOT GOING TO ENDORSE ANYBODY. I'M STILL GETTING PHONE CALLS EVERY DAY. I THINK THERE'S PROBABLY SIX OR SEVEN DIFFERENT PEOPLE AT THIS POINT. I THINK IT WILL BE A BIG RACE. A LOT OF GOOD CANDIDATES, GOOD PEOPLE RUNNING WITH GREAT EXPERIENCE. I'M ANXIOUS TO SEE THAT. AS FAR AS MY PLANS, I HOPE TO TAKE A VACATION >> DO YOU STAY IN THE POLITICAL SPOTLIGHT OR DOES IT SOUND NICE TO GO UNDER RADAR FOR A LITTLE BIT?>> I BELIEVE IN LETTING WHOEVER THE NEXT GOVERNOR IS IMPLEMENT THEIR PLAN AND THE OTHER ELECTEDOFFICIALS. BUT IN 2018 YOU'LL SEE THE ELECTED OFFICIALS WILL BE LEAVING BECAUSE OF TERM LIMITS. THE LIEUTENANT GOVERNOR, THE GOVERNOR, THE TREASURER, AUDITOR.IT WILL BE A HUGE CHANGEOVER. IT GIVES ME A LITTLE BIT PAUSE BECAUSE YOU'LL HAVE ALL NEW TALENT WITH NOT A LOT OF HISTORYOF KNOWING WHAT'S WORKED, WHAT'SNOT WORKED. IT WILL BE A CHALLENGING TIME FOR THE STATE. EVEN HAVING 45 NEW LEGISLATORS OR SO THIS YEAR HAS BEEN A LITTLE BIT OF A CHALLENGE TRYINGTO GET THEM UP TO SPEED. BUT WE'VE GOT A GREAT NEW FRESHMAN CLASS.