Thank you for joining us. You are taking on this job after a pretty bad year for democrats. A lot of republicans who people did not think could get reelected in places like maine did. There were losses of governorships in illinois and states where they should not have. Even in a bad year. As you take on this job, looking ahead, what lessons did you take away from 2014 that democrats can really apply in 2015 and 2016 . You bet. Thanks for having me james. First, i would pushback on that a little bit. We have three great new governors in pennsylvania, rhode island, hawaii. Keeping colorado in connecticut even with the u. S. Senators lost, in the face of millions of dollars in negative ads people spent against them we certainly did not get everything they wanted in 2014, but i think we got some real stars in their. When i look to 2015 and 2016, the way i won the way i governed, was by focusing on the future, fiscal discipline, education, and improving the economy, trying to find common sense solutions. We will look across the aisle to make sure we get things done. I think as democratic governors if that is our focus in 2015 and 2016, and Going Forward we will have, combined with some great candidates, some real successes. Governor, thanks for joining us. I was also curious, what sort of economic message to you think your candidates will need to send . What do they need to convince voters they stand for . I look at what we have done in montana. I mean, 12,000 jobs created this year, a recordbreaking place pace, more or less. An Unemployment Rate of 3. 4 . Investing in education freezing college tuition, living 300 million leaving 300 billion in the bank to protect us from fires, government shutdowns. Our fiscal discipline puts us in that voice for job creation and meaningful investments Going Forward. I think that is part of the focus. Certainly, it is a statebystate analysis. But how do we continue to create jobs . How do we bolster the middle class . Looking at the map of 2015 races, you have three in really red states. You have shown how a democrat can succeed and win in a red state, in a year when everything was spent in montana in 2012. This year, you have races in the louisiana, is a sippy, and kentucky. Are you concerned about going zero Louisiana Mississippi and kentucky. Are you concerned in those places . He is still red. If barack obama is still president , how do you avoid going 03 . People look at the governors races. It is not all about washington d. C. When i won the president lost by 14 points. Looking at these states, and on 22016, in mississippi, it is an incumbent. In the louisiana, we do not know how that will shake out. In kentucky, we are coming out of incredible leadership. And i think we have a strong candidates in kentucky that will really talk about kentucky. As long as we keep it about our state and how we are actually going to govern, i think we will win. The filing is not until sometime in january but jack conway, the current attorney general, i served with him. I think he is a solid guy, and putting together a good effort. He said candidates, talking about kentucky. Do you expect a primary . Conway has staked out a claim. Alison grimes has not ruled it out. Do you think there will be a contested democratic armory in kentucky . I am not sure where that will go. I think the filing deadline is late january. So we will have a clear picture of the field at that point for certain. But i think that democrats in kentucky have a real good story to share. Governor beshear led that. From that perspective, we do not have real divisive primaries. We want to make sure we have a strong candidate coming out of there. About 2016, you guys are going to be competing with incumbents in red states. How do you compete in a state like North Carolina . How do you field a good candidate there . I think you field a good candidate by first looking, are they going to be focusing on the state, moving the state forward . I know there has been a lot of discussion about another attorney general, roy cooper down in North Carolina. General cooper spent a good amount of time in the legislature. I think he has done a great job as attorney general. At the end of the day, the governors race is much more we do not want the dysfunction and gridlock in washington, d. C. If you have an effective leader talking about what they want to do with the state, not just parroting what is coming from the national side, in any of these areas, our candidates will have a great shot. You think pepper curry is the most vulnerable republican incumbent in 2016 . I think roy cooper, if he is a candidate, has a great shot at taking it. I have learned in my short stint in public life that even a year can be a lifetime. So i am not willing to hedge bets on who will be most faux marble by 2016. We are talking about 2016 will be the most vulnerable by 2016. We are talking about 2016. How much of your job in 2015 is recruiting for 2016 . My job is about more than elections during that year. I will certainly be active in recruiting and talking to folks that are really willing to be moving their state forward finding ways at times to reach across the aisle. And we will put together Solid Campaign organizations. One of which is doing the work to try to get the solid candidates. Certainly, working with them to build effective organizations. It also, as we move forward being part of i am honored that my colleagues chose me. Being part of the voice in how governors are making a difference in states all across this country. Speaking of that dga chair job, you are known as an outspoken critic of big money in politics. Same as senator tester from montana, becoming the head of the Democratic Campaign committee. You are joining this organization that can collect unlimited money. Republicans do it, so you have to do it to some degree. Is that a weird feeling as you take this job on . Are there things you can do on more disclosure or other steps to alleviate some concerns about the sometimes undisclosed corporate and union money . Truly, i think one of the Biggest Challenges to our democracy and Representative Government is the amount of money pouring into the system, and the amount of undisclosed money. And i was attorney general called the biggest threat to citizens united. Took a 100yearold montana law all the way up to the Supreme Court. Unfortunately, we lost it on a fivefour decision. Last session, brought a bipartisan bill to say, if we are going to have to work under these new rules of the road at the Supreme Court, at least find out who the wizard is behind the curtain. Lets disclose the dollars. We just got done with the 2014 midterms. A billion dollars were spent in the congressional races by outside groups. On the republican side, 75 of that was undisclosed dollars. I do think we need to do significantly more for transparency. But as suggested by the same token, i dont think it makes sense as we are doing that to make sure that every voters voice matters, that you cannot even have that discussion if you do not have a seat at the table. It certainly would not make sense for, because of, i guess my distaste for the amount of dollars in the overall process though we just say, we are going to fold our cards up on module this money come in. Does that mean you will try to be more transparent, Going Forward . Can we expect to find out more about who those donors are . I think that weeks into this trying to get a sense of what the overall budget is yes. I think at the end of the day if we are going to be spending money in elections, we ought to know where that money is coming from. You mentioned you are weeks into this job. Coming off the 2014 election looking forward, do you think there is a debate now about the future of the democratic arctic, the ideological the Democratic Party, the ideological direction and the tactics for 2016 . By and large, i am the governor of montana. I will leave that to some of the larger pundits to work on that. I know that as governors, if we are paying attention, it is less what is happening in washington d. C. , or not happening, and how we can create more effective government and how we can demonstrate everything we are for, not just what we hear. And more on the other side, everything they are against. Then, i think we win. I think democratic governors across the country are doing some great things. Going into this next cycle, we will expect the same. I want to ask about medicaid. Obviously, this is a big issue affecting a lot of states. Now, republicans control the senate. He tried unsuccessfully to expand medicaid last session. Could not get it on the state ballot. What lessons have you learned . Do you feel like you will be successful this year and trying to expand medicaid . How concerned are you that republicans control congress, the Supreme Court is deciding the subsidies case in june, that the law is going to end up getting eviscerated and the expansion of medicaid is moot . When i bring it home, we have 70,000 working montanans who do not have health care. 9500 of them are veterans or families. We have struggling rural hospitals. We did not pass medicaid last legislative session. This legislative session, there are majorities in both houses, disliked last session, that supported taking federal dollars, but it was more or less procedural tricks that kept them from having an up or down vote. Last two years the landscape has substantially changed. I can look at wyoming. Further south, tennessee and alabama. Were doing that as governors because at the end of the day they do not support, for the health of their citizens, the Cost Shifting that occurs, and keeping critical access to hospitals together, as well as the jobs that we created. It is a nobrainer. That is what so many states across the country are looking at. When we go into this next congressional the next congressional session, i do not expect a lot of things to change from that perspective. What we have been hearing from quite a while for quite a while from republicans in washington d. C. Is what they are against, not what they are for. At the statelevel across the country, a lot of folks have seen you can make meaningful reforms, then the cost curves, by looking at the Overall Health of folks, and not make them come to the Emergency Rooms for their care, which is the most expensive in the country. Do you feel good about your chances of expanding medicaid this coming session . You mentioned things have kind of changed. Obviously, you are right about wyoming. Does that change the dynamic in montana to get this done . I hope so. We walked into this session from advocacy groups to health care providers, to chambers of commerce, all united in saying we need to get this done. If i look at last legislative session, every newspaper across the state opined on it, said we need to do it. Almost all the Business Group said, we need to do this. Veterans groups. Seemed like the only solid opposition was those in legislative majorities. We end up with a 90 day session that starts right after the new year. And i know there is going to be a lot of steps to get there before we adjourn. But i also know that even in this last two years, in addition to what has happened in other states around the country, a lot of folks locally are saying, the continued vitality of my small town depends on a hospital that unfortunately has too much uncompensated charity care. And folks across and that is democrats and republicans saying we need to find a solution to get something done. We have even proposed you had a peer expansion in the arkansas private market action. We have now proposed something that no other state is doing where we are trying to take elements of the private sector to form opportunities, and the ability to bend the cost curve watch out for fraud. I think our legislators, the majority, will come in and take a close look and try to find a solution. I think right now i have 51 legislators in the house that no we need to do this. Over 26 legislators in the senate that no we need to do this. So it is just more or less rallying the forces and assuring we can get an up and down vote on it. We talked a little bit about states taking action while congress is not. Can you talk about there are some issues states still rely on congress for. What do you need congress to do in 2015 . [laughter] you know, i would Like Congress to do actually start moving forward in any number of different areas from the perspective of, when you look at the patchwork efforts that have been happening on funding when we end up with government shutdowns, where states are impacted, it just does not work. One would be a meaningful highway bill that is going to last more than just, kind of, on this patchwork basis. I am a state of 140 7000 square miles. I am trying to make 147,000 square miles. I am trying to make meaningful infrastructure decisions. That needs to be stabilized on the federal level. He keystone xl pipeline, i know you support the project. What are your expectations from this white house, especially in light of the president s comments last week before he left town, saying the benefits can be exaggerated in the debate that happens in this country . I guess a couple of things. One of which is, the keystone runs through my state. We would have an on ramp of 100,000 barrels a day that could actually flow from the area in north dakota and montana on to keystone. Right now, as an example, we have 500,000 barrels a day being shipped out by rail. I thing done right, i think done right, assuring the safety of the pipeline, assuring private property would be protected, this does need to go forward, and it makes sense for our country. It is not the only Border Crossing between canada and the u. S. I would say a couple other things. By and large i think there has been some frustration overall. In some ways, keystone has become a proxy battle for thinking we should be doing more on Greenhouse Gas emissions and climate change. And in montana, we see our climate changing. Even some of those other republican governors say, i dont know about this. I say, markets are, so we do need to take affirmative steps. I think affirmative steps can be taken. At the end of the day, a decision needs to be made. If iran ifex if i ran i expect out of each of my agencies, a certain degree of predictability and certainty in the permitting process. If this had gone on this long here at the state level, i would be pretty upset. So we need to get into a decision. I think that is important for an overall industry and how this is Going Forward. As we look at our Overall Energy security. Back on montana politics, this past election, obviously, john walsh lost. He ended up dropping out of the senate race. I handily reelection win. You appointed john walsh to that interim position. He was your lieutenant governor. If you had that choice back, would you make it differently . We you surprised by how things played out the last few months . I was certainly surprised and disappointed with how things ended up turning out. I think that john walsh was my lieutenant governor. He had come out of the life of military service. And led the largest battalion of montana soldiers into war since world war ii. Certainly did not know everything and it is also, i think, emblematic about sort of what our system has become. As opposed to really trying to find who the people are and what they are for, it is always now looking for that achilles heel. And i do not think that serves us overall well. Will he have a place in your administration . Could he have a role in Veterans Affairs or Something Else in this remainder of the i am not sure what senator walshs future plans are for sure. And consider him a good montana and a good montanan, a good american, a good friend. Not sure what all he is looking at doing next. Works governor, we have just under five minutes left. Governor, we have just under five minutes left. I am curious to hear does it concern you at all . Are you concerned out in western montana that the host [indiscernible] . Quick it is interesting in that i have a 2 billion a year general fund budget. Of that, 100 million 100 million is oil and tax revenues. While there is certainly important employment in my state, i do not go into the next legislative session saying that things are going to live or die based on what oil prices are. I also think it for a couple other reasons as well. As prices go down, so does gas. I know for me and so many families that is more money we are going to spend on main street. I have heard everything from well this dip in oil prices could be six months to two years. In my state, we have an 18 month tax holiday. In the first 18 months of production of oil, state and local governments are not even taxing them anyway. Well certainly it is something to do keep an eye on, i do not think it is something for me as governor to say that the sky is falling. I have also insisted, and i did it last legislative session i insisted we walked out of the legislative session with a 300 million rainy day fund. That is to protect us against fires, floods, government shutdowns, or unexpected changes in the economy. I will insist on that same level this time. And from that perspective, even if things do change, or there are surprises with what happens with oil crisis, we will certainly be with oil prices we will certainly be protected with our rainy day fund. One more thing. I know in an interview with one of my colleagues you said that one thing you think you will need to work on, Going Forward with the democratic governors is trying to govern effectively in states that have a reddish tinge. What does that entail . More and more democratic governors are in such states. What does that look like . I think if i walked into my first legislative session with almost 2 3 republican majorities in both houses and said, were good ideas, if we want to get beyond politics and look toward the future of our state, i am more than happy to find an amicable solution. We made record investments in public education, froze college tuition, cut taxes for businesses, for 2 3 of the companies that paid it. We are probably the only state that fixed our Pension System without rating taxes or doing it on the backs of workers, and left 300 million in the bank. J. P. Morgan said we are the most fiscally prudent state in the country. That is Going Forward for other states too, saying, folks do not like the system of washington, d. C. And at the end of the day, if you are willing to sit down and have discussions, and say, how do we bring our state together . How do we focus on those commonalities . That is much more important to individuals in main street montana, all over. They are less concerned about sort of the hyperbole that happens in washington. They are less concerned with the gridlock. They are friendly less concerned whether you are democrat or republican. I want a good job, good school safe community. It will be that much better for the kids and grandkids. That is the sort of thing theyre working on here and that is what i will work on with other candidates who want to run for governor. We will have to end it here. Thank you for being our newsmaker this week. Thanks so much for having me and happy holidays. And now we turn to our roundtable, as we are joined with James Hohmann of politico m Niraj Chokshi of the washington post. What constitutes a successful dga chairmanship for him in 2016 . He is going to be chairman for this one year when there are three governors races, but as he was saying, the job is more than those races. There is a real risk he goes technically 03, but he is going to be playing a real recruiting role. For someone like him, this is from a personal perspective this is giving him a platform to highlight the montana story that he is telling, to do more national travel, to build his National Donor network. Just the fact that a lot of president ial candidates in the past, from mitt romney on and on, chris christie, have been chairman of the governors associations. I think he needs to win one of those three states. Kentucky is really interesting. Is that the best chance for him . Kentucky is the only one they hold. Steve bashir is one of the most popular governors in america. A democrat, outspoken supporter of obama care and connect, the kentucky exchange. Jack conway is clearly a friend of governor bullock. Himself a former attorney general. Having nice words to the attorney generals who might run. Ran for senate as well. Lost to rand paul. Has experience. He could win. The agricultural commissioner is the republican candidate. He will not have a primary. The candidate who lost a Mitch Mcconnell is being given a look at the primary, if there is a democratic primary. If so, i think republicans will pick up that seat. Something he has to do, to be cautious, it is, the dga could become active in the democratic primary, trying to promote conway over Alison Grimes if she got in. I do not think she will because she lost so badly to Mitch Mcconnell, and in some ways wired over the state to him. It will be a big test of governor bullocks abilities as chairman. Underlying this, we have to remember his ability to raise money is going to be critical. It is only becoming more and more important, post citizens. This is nothing new, but it is crucial. Going into 2016, they might need a lot in really tough battles. Coming into 2014, what did you hear from him in terms of what has been made of this debate about the ideological direction of the Democratic Party . It is statebystate, and he is right. There is this national to Larry Clinton could represent the centrist approach. Elizabeth warren is another approach. But i think he is right. At the end of the day, especially for governors it is about what they are doing in their own particular state and the policies they are implementing. There is a real democratic debate and a real divide. Even if Hillary Clinton is the overwhelming favorite