We are going to go ahead and get started. I really want to thank you folks are coming. For coming. This is terrific. Welcome to the 2017 state of the states. I am scott patterson, director of the National Governors association. Have a few things to mention and then i will introduce our very distinguished panel. The first thing, i want to introduce our new nga logo. We are very excited about it. The other thing i want to tell folks about, because i think it is really critical to know, right after the election and as everybody knows, we have been in a fairly multiyear period partisanship. The Governors Association went olled 1000 american voters. We used frank muntz of muntz global partners. We found some interesting things in this poll. In an era of distrust of many politicians, Americans Trust their governor more than any other elected official. On most issues, Americans Trust states and governors to get a solution more than other levels. Voters were more optimistic about their states future than the country. Nearly three out of four voters said that their state is doing a better job at delivering results than the federal government. These are pretty significant, interesting findings, and certainly more dramatic than we expected. That is why we are thinking about 2017 as the year of the governor. Now, let me now introduce our distinguished panel to give us the state of the states today. It is my honor to introduce the chair and vice chair of the National Governors association, Governor Terry mcauliffe of virginia is our chair. He has made Cyber Security his Signature Initiative as chair of nga, to ensure states are protected from the many threats that can occur and cause various damage. The governor has brought 14. 5 billion in Capital Investment to virginia, more than any other governor in the history of the state. He has brought bipartisan short bipartisan support for education initiatives. It is also my honor to introduce our vice chair, governor Brian Sandoval of nevada. Having taken office when his state was in one of the worst Economic Conditions ever, he has now made nevada economic powerhouse with significant investments for Major Companies like tesla and amazon, to name a few. Under his leadership, the state has placed significant investments in education, and measures Like High SchoolGraduation Rates have gone way up. So, finally, i want to introduce the panel, the moderator of the panel. We are really, really pleased to have carrie brown, the editor of politico, is our moderator. She has a really impressive background in journalism. She has done a stint in europe and was a white house correspondent. It is with great pleasure for me to welcome to the podium, our chair of nga, Governor Terry mcauliffe of virginia. [applause] gov. Mcauliffe thank you for that kind introduction. Id like to welcome you to the fifth annual state of the states address. It is my great honor to serve as the 72nd governor of the great commonwealth of virginia, and as chairman of the National Governors association. Joining me today is governor Brian Sandoval of the great state of nevada, who serves as our vice chair. He and i are also very good personal friends, and i would say as it relates to all the governors, we all get along very well. I want to thank you for your leadership. As you know, the National Governors association is the voice of americas governors and their state on matters of national policy. Today, we are here to discuss the agenda that will work to advance that we have going on in washington, and how it will affect our states and the federal government for years to come. Important, at this very unique time in our history, we are here to articulate the role that the governors are expected to play in our National Discussion in the years to come. Our new president and Congress Face challenging issues. As they began their work, we have a simple message for President Trump and the leaders of congress. Governors, we are here, we are ready to work with you on an agenda that makes lives better for the people with whom we serve. Every day, as you know, governors are on the front lines, turning policy into action. We balance budgets, held roads and rails, attract new businesses to our respective states. While partisanship grinds washington to a halt, we are democrats, republicans, and independents who every day Work Across Party Lines to get things done. In my own state of virginia we have consistently put partisanship aside over the past three years, to move our commonwealth forward on issues like education, Workforce Development, and veterans services. I am particularly proud of the work we have done on transportation, advancing plans to unlock hightraffic corridors like i66 and i95, in passing the first of its kind reform to make sure every tax dollar is spent easing congestion and growing our economy. If you talk to governor sandoval or any of the colleagues around the country, you will hear very similar stories of leaders working together to get things done. Those examples stand in stark contrast to the ugly partisan gridlock that has paralyzed washington year after year. And so, as President Trump and leaders in congress begin their work, we do hope they will follow the example set by the governors by refusing to let partisan battles interfere with the important work that voters hired them to do in washington. And, as equally important for our federal elected officials, to fully consider the impact of the decisions they make on the people of our states. President trump and others have the opportunity to improve the quality of life for people in our state. Sequestration is a great example where we can start this conversation. In virginia between 2011 in 2013, it cost virginia 9. 8 billion directly and 154,000 jobs. We need to Work Together to put an end to sequestration and prevent further cuts from harming our local economies. I will say, governor sandoval and i had a very good meeting this morning with speaker ryan on this topic, and i am encouraged. The president has indicated he would like to invest as much as 1 trillion in our nations infrastructure. Every single governor in this nation has roads, bridges, tunnels, and airports, and we want to Work Together because we need to repair and replace them. Along the way, this will create tremendous Economic Opportunities for everyone. We can Work Together to defend our Critical Data against Cyber Attacks the cost United States of america 300 million a year. In virginia alone last year, we saw 70 million attacks. That is a cyber attack every four seconds. The marketplace act is another opportunity for federal decisionmakers to help the states balance their budgets and invest in key economic infrastructure. We have seen what has happened to sears and macys, as they are Closing Stores because it is hard for them to compete with the online retailers. Speaking on behalf of the bipartisan governors representing the six Chesapeake Bay states, let me be very clear. We are unified in protecting this critical class that affects critical asset that helps our economies and everyone else who lives near the bay. As chairman of the Chesapeake Bay council, i am advocating on behalf of the six governors and the mayor of the district of columbia, that we continue to have commonsense policies to make sure we are continuing to protect, save, and restore our great Chesapeake Bay. These, and the rest of these incentives and initiatives that governor sandoval will talk about in a moment, our real are real opportunities to bring the pragmatic, bipartisan leadership that we practice in our states every single day to washington and to get results for all of our citizens. That is certainly the approach we hope Decision Makers will bring to their deliberations on the future of health care for our country. There has been no shortage of heated political rhetoric on this issue, but i do feel confident speaking of my colleagues when i say that repealing the Affordable Care act without offering an adequate replacement will have farreaching consequences for our states and the people who live there. That is particularly true for those states who have expanded medicaid. In virginia, unfortunately, we have not expanded medicaid. But a repeal of the aca accompanied with a proposed the healthcare entitlement could cost the state of virginia and the next budget over 300 million. And, of course, that does not include the enormous impact that would befall the nearly 400,000 virginians who stand to lose access to lifesaving care if proper steps are not taken. Governors are dealing with these issues each and every day. No matter which direction our congress heads, we will be the ones administering many of the policies that result from that discussion. And dealing with whatever fallout that may occur. So, we are here in the spirit of friendship and common purpose, to make sure that policymakers hear our voices before they make decisions that could affect us and affect so many individuals in our state. Their decisions will have profound impact on our states and the families that live there. Before i turn it over to governor sandoval, i want to say congratulations and welcome, on behalf of the nations governors, to President Trump and our new congress. The challenges that we face together are great, but so is our capacity in america to meet them. The men and women of the National Governors association are ready to work you on areas of common ground. They Model Solutions to problems we have yet to solve. And yes, we will stand up respectfully if washington pursues the wrong course. In the end, i am confident we will all Work Together to leave our states in our nation better than we found it. Now, it is my honor and pleasure to introduce my friend and colleague, governor Brian Sandoval of the great state of nevada. [applause] gov. Sandoval good morning, everyone. It is a great privilege to be here. To governor mcauliffe, i appreciate your remarks and particularly appreciate your leadership. I am looking forward to this year with you in terms of leading the National Governors association into a new time. It is my privilege to delve deeper into some of the issues governor mcauliffe mentioned, outlining our priorities as governors for the new president and congress. Nga has been building a transition blueprint for President Trump and congress the that details issue by issue those most important to governors and states. We ask the federal government to partner with us to address those issues. President trump has outlined three priorities for his first 100 days in office. Infrastructure, health care, and tax reform. To echo governor mcauliffe, governors stand ready to engage with the new administration to produce a positive outcome on these and other issues, for all americans in our desk and our and our respective residents in our states. Governors make the following recommendations for those three priorities. First, infrastructure, another governor talked a little bit about that but i will talk a little more. Governors know worldclass infrastructure is necessary for a strong economy. Every day, we champion ways to fix, fund, and finance infrastructure needs in our state. We also know states cannot fully realize this work alone. That is why we urge the new administration to support a commitment to bring infrastructure to a stable. There is ongoing uncertainty of the funding instability of the Highway Trust Fund. That instability causes states to think twice before modernizing infrastructure. As we all know, infrastructure is not just about roads. It is about water and energy. Americas Drinking Water and wastewater must the protected must be protected and treated properly. Governors will work with our federal partners on successful implementation of the Water Resources development act. We also want to work with congress and the relevant agencies to strengthen our Nations Energy infrastructure, including expanding and improving the electric power grid, and bringing Broadband Networks to underserved and often remote areas. Second, healthcare reform, which again the governor has talked about. Health care often talks the list tops thethe often list of issues that the American Public cares most about. As the managers of medicaid for the people of our state, governors have a Critical Role to play in the future of American Health care. No one is better equipped to understand and respond to the unique and complex need of our citizens then governors. Needs of our citizens than governors. That is why we are particularly enthusiastic about any proposed federal reforms that provide states with greater flexibility to develop Innovative Solutions that meet our residentsneeds. We also know that higherquality care should not and does not have to come at a higher cost. Therefore, governors must play an Important Role in discussing Health Care Policy to navigate the complex relationship between state and federal programs. And how legislative changes to that could affect the people of our states. We ask the administration and all members of congress, to let us be your trusted partner. This is going to be very key in terms of collaboration, and a resource. We are the governors, we are closest to the people in our states as you develop the policies that will guide Americans Health care. Last, tax reform. Federal tax reform, though complex and multipronged, has a impact on states. To truly succeed, tax reform needs to be an intergovernmental effort. It is important to preserve Public Financing mechanisms which play a central role for state and local governments to raise capital for a variety of public projects, including infrastructure. Those projects help pave the way to grow jobs, strengthen the economy, and maintain the United States position as a global competitor. The new Administration Must maintain the current status for deductibility for state and local income tax. The governor talked about online sales, and while i am on the subject of tax reform let me also bring up this opportunity to bring up this commonsense tax issue with broad, bipartisan support that has been on the congressional docket for decades. Affirming the states ability to collect sales tax from online purchases, the time has come to put this longstanding issue at rest and pass legislation that allows states to collect revenue already owed but currently uncollectible. Three other things i wanted to chat about beyond the president s top three agenda items. Governors have additional priorities. They asked congress and the administration to keep those priorities in mind as they implement change. Particularly in education, something that is very close to my heart. Last year, Congress Passed a new education law that restored state authority over k12 education. States have looked to the classroom and local School Boards to develop Education Systems that place students, not the federal government, at the center. It is critical that states continue to build on that progress and strengthen our nations education system. Governors again must be consulted as the new law is implemented. Next, energy and the environment. Governors ask to be consulted at the early stages of energy and environmental policy development, for state interest and obligations that intersect with the federal government. Working collaboratively with our federal partners, states can continue incorporate these methods into national policy. Third, Public Safety and the National Guard. One of the most Important Roles as governor is to ensure the Public Safety and security of citizens and their property. In order to accomplish this central duty, states need flexibility and federal funding for state Public Safety efforts. The men and women of the Armed Forces God bless them all active duty, reserve, and National Guard make sacrifices every day to protect our country and preserve our way of life. The National Guard is the only military force a governor can call upon to respond to disasters and other emergencies. The guard remains a costeffective solution for sustaining military capabilities at home and abroad. Therefore, it is important governors maintain maximum flexibility, and you have heard me use that word many times, do to use National Guard forces to conduct a range of missions. Governor mcauliffe mentioned Cyber Security, and i truly appreciate him bringing this critical issue forward for all of us. The foundation of todays economy, National Security and the daily operations of government are increasingly dependent upon the security and reliability of digital infrastructure. In my own state, the great state of nevada, in my state of the state address i gave last week, i announced the creation of nevadas first Cyber Defense center. Imitation is the greatest form of flattery, and we really borrowed upon governor mcauliffes great work in the state of virginia. Like nevada, all states are moving quickly to stay ahead of the threats to our Digital Economy. In order to be successful in stopping threats, the federal government must view states as primary sources of intelligence, as well as primary recipients of intelligence from the federal government. States should be seen as fullfledged partners in gathering and disseminating intelligence in the fight against cyber terrorism. Finally, job creation, and governor, i am really proud of what you have accomplished for the great state of virginia. It is incredibly impressive. Certainly, job creation is the backbone of every governors agenda. To remain a top competitor globally, the United States must continue to create and maintain a sustainable pipeline of talent. Governors brought Workforce Development and learning to the forefront with proposals on apprenticeship and collaboration with congress, to create the workforce opportunity act. Now, we ask the administration not to stall that important work by preserving governors federal workforce reserve at 15 to ensure statewide. Statewide workforce conserve can serve all citizens. We also ask congress to incentivize and reward employers and job seekers who take advantage of workbased learning and apprenticeship opportunities. In closing, a Strong Partnership between states and the federal government will foster the sense of unity our nation is longing for. I think the governor talked about that. Our nation is craving leadership and collaboration and working together in order to propel us as the 50 states, and our nation, forward. This is our moment to come together, protect our union, and promote the general welfare of the citizens of these United States. Ladies and gentlemen, it truly is a privilege to serve as the vice chair of the National Governors association. I appreciate your attendance today. I know you come to many different places, in regard to the media and administration, and your respective interests. We truly do mean it when we talk about collaboration and flexibility and working together. I do believe the National Governors association will be the go to entity, and all of us as the governors of this amazing country look forward to doing that. Making this continue to be the greatest nation on her. On earth. Thank you, ladies and gentlemen. [applause] i take it that is my cue to take over. Thank you, governors, for the remarks. What we are going to do now, we have about 20 minutes to have a discussion and then we will open it up to some reporters. I was not going to start off on this note, but i think governor sandoval, your remarks, i think a lot of people are wondering about the unity question and President Trump. If you could get into a room with President Trump and i would be curious to know if either of you have yet there has been a lot of discussion about the transition and the positions he staked out during the transition, and whether he is doing enough to unify the country. What recommendations would you give to him as governors, you stake your reputation on working with both parties, how can President Trump should he be doing more . i havedoval not had the opportunity to meet with the president. We all know he chose a governor as his Vice President and i think that is a good template. Very early on, i have complete confidence the president will reach out to the governors and a good place to start is with the governors and a good place to start is with the National Governors association. We have a meeting next month and im confident we will have the opportunity to meet with him at that time. One of the things i would like to convey to him as governors, we are the individuals who are closest to the people of our specific states. No two states are the same, and we have unique obligations and citizenry and what have you. I want to talk more about Economic Development and health care and education. I am absolutely optimistic about the opportunity to work with him and his administration. I want him to succeed, because as he is successful the nation will be successful. What about you, governor mcauliffe . Gov. Mcauliffe first, we want resident trump to be successful because it is critical for our nation. You have to Work Together at a state level. I am concerned when they are talking about our medicaid expenses. That could be catastrophic for the state of virginia. We would lose 300 million. We want to be in the room for the discussion so that we can offer quality care. I guess i would say to him, lets stay focused on the big, broad issues. Economic development, the trillion dollars of Infrastructure Spending. I do not really care about the size of the inaugural. I am concerned about this issue of 3 million to 5 million voters, illegal voters. It is just not true. When im concerned about, lets not use this to try to deny people their opportunity to vote. Lets not make it harder for people to vote. I have tried to meet in virginia. You are the president , he walked into the oval office every single day. Put all of that stuff behind you. Lets focus on the big issues and lets not play small ball on issues about crowd numbers and stuff like that. I was going to ask about the 3 million to 5 million because it was the topic of discussion. Have you seen any evidence that there were 3 million to 5 million illegal votes . Sandoval i can only speak to the state of nevada and i am not aware of anybody in our great state. Im not proud of the way our our election. To me, its over and lets move on and lets get to the job of governing this country. We talked about his three priorities. Im looking forward to getting into the specifics of those. I dont feel like it is an adversarial relationship right now. Im the first one to stand in line in say. We need to move on. Thats the bottom line. The idea of doing an investigation through the doj is not something you think is worthy of the governments time at this point . Gov. Sandoval i dont. It may be worthy of the governments time, aca. Speaker ryan this morning, as you said, from your conversation on folks on the hill, do you have a friendship in the senate to do a repeal of obamacare at this point . Gov. Mcauliffe there are a lot of improvements that needed to be made. Repeal without an adequate replacement, together, i mean, 400,000 virginians will risk losing health care. We met with leader pelosi yesterday. We met with speaker ryan today. Nobody is quite sure. It was clear from speaker ryan today that they want a block grant. You can do a better job administering it. The issue for us at state level is what is that fresh number . What you do about the nonexpansion states . Right now, we are an efficient state. We are a 5050 match. We get 4. 6 billion from the government and we match it, what will happen to us in virginia . Our threshold, if you are a single woman with two children, you will be able if you make 30,000 a year. What if the stock market goes down or we have a recession . We at the state department will be responsible for the increased costs. If youve been in an efficient state, you will be disadvantaged. The speaker was open to this today. We understand that is the issue. What is the threshold number we will have to do with . But no one today has a picture of what replacement means. In the idea of block grants. Gov. Sandoval let me First Respond because you asked about votes. Its premature to be counting votes. Im not going to speculate about whats going to come. Ive heard a lot of general language that has come up and nothing specific, as a mentioned in my remarks. I am an expansion state. I chose to expand medicaid and we have a staterun insurance exchange. It is working well for us. As the governor talked about, there are a lot of lives at stake, with regards to decisions made here. But im going to harken back to the fact that i hope decisions are made in a vacuum and there is a reach out to the governors because i can talk specifically about what we are doing in our state and was working well. Everything can be improved. The rhetoric i learned is that nobody is going to lose their coverage and prices are not going to increase. I say, great, that is wonderful. But until we get the specific details, im not going to have an adversarial relationship. Once the specifics are given, then we can talk. I gave some recommendations that also talks about the consequences depending on the decisions that are made. I think there is a great opportunity here. I took that letter as an effort at collaboration versus anything adversary. Governor mcauliffe is not in favor of doing block grants. Is that something you are concerned about . Gov. Mcauliffe a block grant without knowing what the number is going to be i will say this. I think every governor is very concerned. If you think locker grant is block grant is going to help your state and get you more money, i just dont think at the end, that will be the result, at the end of the day. I think everybody understands nobody wants to throw anybody off their health care plan. They dont. But this is expensive. Its complex and it will take time. We just want to be able to work with you to figure that out. We care about all citizens. We want to give them great care and we would want to be efficient and make it cheaper. Gov. Sandoval a similar answer. It depends. Of not going to contradict myself. We want more flexibility and we will have more flex bill he with thats flexibility with the block granting, but it depends on what the formulas are for that block granting. So, if i get a fixed amount of money and my economy takes a dive in my state and suddenly more people become eligible for medicaid, i dont have the delta to cover them. So i want to make sure there is something within that that takes into account, for a fluctuation in the economy. To move onto infrastructure, i am old enough to remember when shovel ready became a term for president obama and that it became a very loaded word for president obama. When he was developing a stimulus, he asked for shovel ready projects. They turned out to not be so shovel ready. What lessons can we learned or can we learn or have we learned from that stimulus . That we can apply to this round, this effort to inject money into infrastructure, to create jobs, as you say, whether we have a more positive view of the stimulus, that can be left up to folks to interpret. But, as governors, what happened then that didnt work that we can apply now you are developing lists of projects out there, making sure that they can start moving quickly and not over many years because the impact is dulled when that happens. Many were ingov. Mcauliffe financial states at straits at that time. Many governors had made the decision. A lot of governors used that money to balance the budget. A true trillion dollar infrastructure, we all need to repair our roads and bridges. In virginia, we lead the nation in publicprivate ownership. I Just Announced a great project outside the beltway. This is going to cost taxpayers 1 billion. We renegotiated the deal. Not a penny of taxpayer money will be used. All came from the private sector. Three free lanes, two express lanes in the middle. That is what we talk about what we want to do going forward. We do have projects ready. I purchased the s line from richmond to raleigh for highspeed rail. That was done from the grants from the federal government. But i used private sector money to turbocharge that into 1. 4 billion. So, as i said to speaker ryan, these projects were if the work if the federal government is willing to put some money into the infrastructure. Im optimistic. We are ready to go. We have total capacity, which allows us to bring the private sector in. Governor sandoval just a few comments. I agree with governor mcauliffe in terms of budgets and the stimulus preceded my term as governor. When i came in as governor, i had to find a way to fix the hole that was there when i came on. That was devastating and hard to do. I dont think we should be doing projects for the sake of doing projects and repaving roads that dont need repaving. That is different. We dont have any toll roads. We dont want to have any toll roads. We are not going to have any toll roads ever, at least as long as i am here for the next three years. So, we have a different formula. I am really proud of our roads and bridges. They are in pretty good shape but in terms of specifically responding to your question, one of our big priorities in our state in which i think should be a National Priority is building interstate 11, phoenix and las vegas, too much of politic areas in the state that are not connected. We have begun construction of a small portion of that. We want to see interstate 11 go through nevada and continue north. We have a couple of Industrial Centers that we would like to be able to build some infrastructure. Water is always an issue on the west, but provide adequate water so weve got some Great Companies that are moving to nevada, tesla in northern nevada and Hyperloop One in southern nevada. Wed like to see the Industrial Park continue to grow. Part of that is having that infrastructure and the rail and water to be able to do that. I think those are two projects that would have immediate benefits that would improve the economy, not only from my state, but for the country. Carrie i want to open it up to reporters in just a minute. I was hoping for you to respond to some of the executive orders that we are expecting to see today that deal with the wall. I know you are not a border state, but what is your position on the idea of going out that wall along the southern border . First andval foremost, i would have to see the executive order. My list of things, that is not the first one. We have a good immigration policy and we should continue to improve on that policy. That should be an issue that the congress and the president should take on. Ive always believed in gaetz gates versus fences and having a good immigration policy. I just think there are the things we need to focus our time and energy on. We will open it up to questions. You are the first one. You mentioned the state and local taxes. Aside from the flexibility you mentioned, would getting rid of the state and local Tax Deduction hurt your bottomline . What difference would it really make in your state . Gov. Sandoval when i was giving my remarks, when you come to nevada, we have no state income tax. [laughter] so, there is nothing to write off. Thats more of an issue i would probably just give to the governor here. But i do know in terms of the other states, that is very important. Gov. Mcauliffe its a huge driver of states economy that relies on it. It is an incentive to bring businesses in. It is an incentive for families to move to your state. I think it very highly unlikely that they would do anything about that in the reform of taxes. I dont see that happening. They always talk about the duct ability of municipal bonds. I think it would triple the market if you try to end that deductability. If you take it away from the state and local level, you are crippling some of the municipalities. I dont think where we are today we now have seven years of sustained growth. That is a long time. We have to be very concerned about what is going to happen next with our economy. I am a little concerned about our trade policy. As a state that last year did 32. 5 billion in trade. Those tpp countries, 65 of my trade was done to those countries. I think we need to be very careful. I am for open markets. I am for competition. But we are a big trading state. 95 of the worlds customers live outside the United States of america. Carrie is it a greater benefit to states with more highincome taxpayers . Gov. Sandoval what was that . Is it a benefit to states with more highincome taxpayers . Gov. Mcauliffe i think it is part of everyones individual tax planning and where they want to put their businesses. Its part of your economic bucket to regroup businesses and recruit businesses and families to want to stay as part of your economic arsenal. I wanted to ask you your thoughts on how you went to trumps plan to punish saying for cities would impact your state. Cities would impact your state. I dont know the specifics of that plan. Certainly, i dont want to see anybody get punished. Someone that has been supportive of daca and i have passed policies in nevada that have been beneficial to immigrants. Universities, that has been an issue up there. Our universities will be sanctuary sites. Again, its one of those things here and i dont want to anticipate anything until i see the specifics of that. Gov. Mcauliffe we dont know what anybody is going to propose. At the end of the day, for every governor, if you want an open and welcoming state, you want to treat people with dignity and respect. I also pushed legislation to deal with individuals, the dreamers and others, to make sure that everybody has an opportunity to the american grain. American dream. Im with governor sandoval. I want to know what our immigration policy is, building what could potentially be a 20 billion wall is not an immigration policy. Its not. We are still in the first couple of days, but i am concerned about the rhetoric that has come out. Mexico is not paying for the wall. We are going to spend some estimates Congress Says it is a billion dollars from others say 12 billion. Congress says it is 8 billion, others say 12 billion. A report came out today that said it could be 20 billion. At the same time, you announced a federal freeze on federal workers. In the commonwealth of virginia, that is is concerning. Bipartisan, democratic and republican members of congress in virginia have come out to condemn that. We have an aging workforce today in this country. We are trying to incentivize Young Millennials to come work for the federal government. I had the same issue and im sure governor sandoval does with our stay. Their state. Its an aging workforce. You want to entice people to do public work in your state and your federal government. Freezing the workforce, phasing the pay raises for the federal workforce, to me, is not the right step that the president should have taken in the first week of office. We have to incentivize people. We want them to come for the federal workforce. But the longterm effects of this could be very hurtful to the United States of america. And spending 20 billion on a wall at the same time youre freezing and taking incentives away from federal workers, i dont think is a good policy. If i mayoval follow up, and perhaps this is in response to your question, but we have a large amount of aimlessly which learners in our multi language learners in our state. As part of my budget, i made massive investments in that population and we have created what we call victory schools, which is extra money for those schools that have large populations of english language learners. We allow for the undocumented to be eligible for our millennium scholarships, which allows them, when they graduate high school, to be able to attend in nevada a nevada university. I signed a bill that allowed for a daca individual to obtain a teaching license in the state of nevada. I think we are very receptive in a state that has had to respond to a large amount of immigrants. I think weve done real well. Carrie lets go here, and then over there. You make your voice heard on International Trade in this discussion of borders [indiscernible] gov. Mcauliffe once again, the devil is in the details. We will see what he proposes. We cant have a trade war. We cannot be protectionist in this country. I am big trading state. I sell a lot of ag products. I have been all over the globe. Our numbers are up dramatically. We just moved to second place in the east coast for largest exporters. 320,000 jobs in the commonwealth of virginia are directly related to trade. So, i am just very concerned about how we are going to treat our trading partners, how we talk to our trading partners. Listen, i supported tpp. I felt and i worked very closely with president obama, that it did the environmental it also had Worker Protections in it. It was really advanced forward on the Digital Economy and things we could do as a nation on that. And he gave us access to markets. And lets be clear. China i believe has already done deals or in the middle of doing gears with half of the 11 countries. The other half are lining up to do deals. We cant sell our products to just americans. We have to sell in a global marketplace. I always like to say, i am the greatest chicken salesman since frank purdue. Ive been to china and ive been selling chicken parts. You have to do what you got to do. Thats how you sell. Its what you got to do. It is a Global Economy today. Stopping companies and putting tariffs on all im saying is that we have to go at this very slowly, very carefully, and we do need to think this out. But there are ramifications to putting walls up as it relates to trade. And i know as a state that does a lot of trading activity around the globe, i am constantly working to export and bring new markets in. I was in australia. I just went to korea and china. We are selling a lot of products. I am just very concerned about it. We just need to tread on this very carefully. Gov. Sandoval i will respond briefly. Ive been on several trade missions as well. But i havent eaten any chicken legs are bugs. Or bugs. [laughter] gov. Sandoval in any event, i suppose i am more of a pragmatist. It is what it is. The president has made his decision. He has signed his executive order. He is going to do unilateral negotiations with countries. I would imagine he he would he would begin with great britain. I think the Prime Minister is there at the retreat for the republicans where the president will be. See how it goes. As i said, we can speculate and think how good or bad is going to be, but he is the president and hes made his decision. He signed his executive order. And we will respond accordingly. You also asked, hopefully, we will have a voice in all of this these trade missions. Im out there selling nevada and representing our anchor tenants in terms of her defense ours our in terms of defense manufacturers and their Mining Industry and others. I do want that to be inhibited in any way. I dont want that to be inhibited in any way. I dont want to cause my state or citizens of my state to lose any jobs. And if there is an impact, i want to be able to have an opportunity to convey that to the administration and let them know what the consequences of those decisions are. But until we know what the decisions are going to be, as i said, im not going to speculate on whether it is going to be good or bad. Aboutanted to talk to you infrastructure. Virginia is a leader in p3. The admission came out yesterday or today and said no new grants or contracts coming from dod until they decide otherwise. I wondered what your reaction is to that, and are p3s the way we are going . Gov. Sandoval we are one week into the administration. I will be reading that executive order or whatever official action you described very carefully. But he also signed an executive order yesterday that allowed for expediting the environmental pieces of the project. I saw that is very good news in terms of federal review of projects to get them going. I know in my state, it will delay a project four to six years with regard to the environmental aspects that have to be conducted before a project can go forward. Juxtaposing those two, they seem to conflict with one another. But, until i read them myself, i took the executive order that was signed yesterday is very positive. Gov. Mcauliffe i do think the way they are looking, going forward, is sort of ap three 3 type model. There is no question about it. Is a sort of p3 type model. There is no question about it. It is not the panacea of all deals. When i became governor, i saw the first two deals ever done. Money had been spent on a road that not a shovel had gone in the ground and it was going to go over 400 acres of wetlands. To do that, which has never been permitted by the army corps of engineers, bent may be virginia was going to be the first, but to get that, you have to apply for a permit from the army corps of engineers. No permit had ever been applied for. And we spent 300 million. I told companies very clearly i dont blame you. I did some renegotiating. The deal was done before i got there. I said we are going to do some renegotiating. In my very subtle way, i made it clear, if you did not renegotiate, you will never do business with the commonwealth of virginia again. And i got 340 million back. P3, you have to be very careful about them. The way we do roads, remember, these are choices. So, you have free roads. And i am building a new free road. You have an option if you want to do an express lane. This is a choice. So, i am being able to use private everythingy to build free. Foryone can still travel free in the commonwealth. But if you want to get an in get on an express lane, all of that is being paid for by the private sector and its clear that this is the way the federal give us a Partnership Deal and we will use your money and we will turbocharger with the private sector money and create not only new roads, but real capacity. In this nation, we have to do a lot more on rail. I dont have to tell anybody here in Northern Virginia it took me an hour to get in from mclean today to go to the capital. Its eight miles. We are doing the best you can. Is why the silver line in so many of these new opportunities that we have, weve got to do a lot better job in transit capacity. The fast act was the first time the government had given states money in a long time, but they still did not raise the federal gas tax, which is hurting all the states. Is it any chance you will see that change . 1 trillion has to come from somewhere. Gov. Mcauliffe i know there is hesitancy on the gas tax. I am proud of the alanna gateway. We will revolutionize in rail and freight and Road Construction and bridge construction and highspeed rail in virginia. We couldnt have done it without that money. And people got mad and said why did virginia get so much . Because we had the best projects. If you have a good project, you can get a Good Partnership with the federal government. At the end of the day, they want to make sure that we are serving underserved communities and having a driving impact. I never want to argue on the gas tax. We can take that money and turbocharge it with the private sector and get a much bigger bang for the buck. Ive got an increasing population. Have 8. 5 Million People in Northern Virginia driving every day. Gov. Sandoval i would throw in the Highway Trust Fund and having certainty for that. We are in the midst of building in any event, its very hard to plan longterm projects. I cannot commit to that kid of years out if we dont know we will have the money. We may have time for one more question. Met leonard, government computer news. A lot of people have been hopeful about the proposed Infrastructure Spending the new administration has been talking about, and a lot of different people are hoping their projects will fit into the definition of infrastructure. They hope updating legacy i. D. Systems and other additional projects will be included. What are your ideas around the definition of infrastructure, and how creative will people be able to get for getting funding for their projects under this . Governor mcauliffe i think it is a broad definition of infrastructure. Every governor may look at it differently depending on what the state needs. Exponentialdly growth in Northern Virginia. We have the Largest Naval base in the world down in hampton roads, opening up trenching for our aircraft carriers and nuclear subs we have at norfolk station is important, so i would say also dredging what weve done, it is a National Security interests that is important for virginia, so i would view a broad definition. If it increases capacity for a it is in the best interest of the United States of america. I would have a broad definition of what you would view infrastructure as. Governor sandoval i would agree with the governor, and obviously, nevada is different from virginia in that we are 86 federal land, and we are very wideopen spaces, and i would love to see some broadband conductivity in my state. That would the an incredibly important Infrastructure Project that i would like to see happen. I already started i already talked about interstate 11. We would love to see the opportunity to bring in the to make them we use the term shovel ready so that when we bring in more companies to our state, they will be ready to develop right away. There are projects in reno that toould love to see funded improve the commute and make the experience for people who come there. Governor mcauliffe i have a spaceport. The Space Shuttle is important. I think we can come up with a lot of good infrastructure. Well, thank you so much to both of you and to the in ga the nga. I think that is my cheer. Thank you for coming. Thank you for your candid remarks. It is always fun to your governors talk about the federal government. You get a little bit more of unvarnished truth, so thank you. [applause] [captions Copyright National cable satellite corp. 2017] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] next, a review of President Trump plus first week in office. He will show you some of his meetings with business and Auto Industry leaders. The president signing some of his First Executive orders, and his remarks at the department of homeland security. President trump met with Business Leaders at the white house on monday. He said he wanted to meet with the Business Executives once a quarter. He also vowed to cut