Housekeeping to let you know that the lab captioning for todays event is available at american progress. Org live captioning. We have a tremendous conversation ahead of us with the california governor, gavin newsom. A fantastic discussion with our panel. I well get into the introductions a bit later, but i really want to provide some words of context to the conversation. On the final day of the Democratic National convention, it is only fitting to look forward and consider how we can correct the course of this country. The Trump Administrations response to the pandemic, black lives matter, frankly dangerous and reckless of our democratic framework has made it abundantly clear that right now, under this administration, we are on the wrong path. We are not just on the wrong path, we are heading backwards, dangerously backwards. So, that is why this conversation is so important, because we want to make sure that we are moving forward. And what is really critical to this conversation is learning from the great work that has happened at the state level, because we do not want to reinvent the wheel or start from the ground up. Many administrations have paved the way for progressive values and innovative policies, policies that have contributed to the platform on the National Stage and leading the charge is california, when it comes to paid family leave, sick days, Environmental Justice and criminal justice reform. California has been a beacon of hope in a time when the country as a whole feels like it is in a very dark place. It is a shining example of the fact that you can invest in people and also have incredible Economic Growth. Before the pandemic, californias Unemployment Rate was 4 , gdp over 3 trillion. Its its one of the largest economies in the world. Its really the philosophy, again, of investing in people to drive Economic Growth. That has been at the forefront of Governor Newsoms agenda and his success. So, we are thrilled to have Governor Newsom kick off this conversation with us. Well have a Group Discussion then go to our panel afterwards. With that, ill just start asking you questions. [laughter] first, id like to talk about the coronavirus. California has had some challenges, but its now stabilizing. I wanted to ask you, the states have been on their own with the virus. We have 50 states dealing with a virus that in other countries, essentially, they have a National Framework and a National Plan. How has it major job more difficult, the fact that we dont have a National Plan . How is it affected the people of california . Gov. Newsom thats a great question. Its a question that governors ask among themselves almost on a daily basis. If there is a byproduct of a lack of National Leadership as it relates to resolve on testing and ppe, on broader strategies on Contact Tracing and the like. Its the relationships that have been formed across party lines at the state and local level that will manifest think well into the future beyond just the pandemic. The relationships not just of the governors and mayors but the staff. Offices of emergency services, procurement that is taking shape across jurisdictions, across the lines. We just had our weekly call with our chiefs of staff of all the western states. Every week now, the chiefs are engaging and engaging beyond just this issue. Theres a byproduct of optimism. The spirit of your introduction is the spirit that enlightens me. That is if you dont like the way the world looks when youre standing up, stand on your head and go local. Think of the metros across this country. There are still remarkable things happening at the local level. And were very proud of this state. We had a 3. 8 average gdp growth over a five year period. We paid off over 30 billion of debt. We were able to put aside the highest reserves in the states history. We actually used part of our surplus last year to start paying down pension obligations. I dont know of another state that has reserves to pay down pension obligations. All of that changed. In january, we announced another budget surplus. In january, a few months later, we had a balance and we just did a 54. 3 billion shortfall related to covid. Covid has devastated the economy of this state. We were the first ones to do a statewide stayathome order. Whenever experienced the peaks of other states. We were stabilized. We were able to extend that curve out. We started to modify our stayathome order. What happened was people sort of reverted back to their original form. While we had protocols and processes and modification requirements, we didnt necessarily see that adopted as we had hoped for. As a consequence, we learned a valuable lesson about that. And so we had to go back into a modified stayathome again and weve never broken 8 positivity. This is with florida, arizona, texas. Never broke 8 positivity. About 6. 6 on the 14 day right now. Were at 6. 3 on the seven day. Were moving in the right direction right now. Were going to modify this time with an understanding of Human Behavior thats what we all have to want to go back to the way things were and be much more judicious, much more thoughtful. Ill close with this. California is a self starting state. Theres an entrepreneurialism. That defines the best of this state. Rather than pointing fingers and talking about who is to blame, our mantra has been alright, we have to figure out what to do. We purchased billions of dollars of ppe from overseas. We actually sent 17 Million Masks to four other states because this state was able to procure more masks. We still have almost 300 million in our stockpile. Weve been able to figure out our testing. We are averaging over hundreds 3500 tests per day. I guess its the spirit of accountability, responsibility, and the need or desire to assert ourselves which is clearly something we look forward to resolving itself when joe biden is sworn in next january. Neera yeah, i think that i do want to emphasize the Positivity Rate in california has definitely been much lower than some of the states where were seeing real surges. Also, every state is dealing with the fact that there has been mixed messaging at the federal level about basic safety protocols like masks. Thats just a challenge every state has had to deal with. I also want to ask you, going forward, as we come out of the pandemic, how is california making sure that support reaches all income levels, especially those communities most in need of assistance . At the federal level, there has been a whole conversation about issues and the fact that we have no package, no legislative package that its a real burden on states. Can you address how youre solving that problem with the lack of support youve gotten so far . Gov. Newsom the experience of california, we were able because of the good economic times, that we all inherited, we had 119 consecutive months of net job creation. We talked about the reserves. We were able to draw down on the reserves, able to put things together, a lot of onetime solutions to get through these extraordinary shortfalls. Next year is going to be profoundly challenging for cities and states. And thats why this new stimulus, this new cares act, is so foundational, so fundamental. Not to bail out states that have actually been managing their state very effectively. Its about social responsibility in what is the United States. What is the purpose of the federal government to provide for that in a way that can soften the edges to instill a sense of wellbeing, but moreover get is healthy again, which is the most important thing in terms of getting this economy moving again. Let me say this. You talk about inclusion and equity. Thats front and center of everything we do. We talk in terms of growth and inclusion. As a nation, weve forgotten the second part of the equation, growth and inclusion. Im here in california, in the worlds most diverse state in the worlds most diverse democracy. California is a majority minority state. 40 latino. 27 foreignborn. And if theres anything i want to express, and that is a point of consideration that needs to be highlighted in the national discussion. America today is a lot like california in the 1990s. America today reminds me of california in 1994. The xenophobia, the nativism, one side versus the other. We got rid of affirmative action in 1995. Infamous here in california with the governor running for election, who was going to announce shortly thereafter, and did, his own desire to be president of the United States. That marked a moment that also marked this moment in california. The politics have radically shifted in this state. Its no longer part of the conversation as it relates to republican president ial aspirants. Its not an play. And it really marked that moment and i really believe this. That the Republican Party in the state of california has a third party status now. It is a cautionary tale for the national Republican Party. It should sober every republican in this nation. Theyre walking off the exact same cliff that they walked off here in the state of california. Be i say that not patronizing, not to even be political, but objectively, there are real lessons and considerations and caution flags that should be considered as we look forward to next weeks republican convention. Neera right, and if you think about 1994 and 2016, they did when in 1994 but then they lost for a while. Just to follow on that and to put a pen in what youre talking about, there has been a discourse among conservatives that theres a real tradeoff. The best way to get Economic Growth is not to invest in people, its to cut social services and cut spending. Part of whats happening with the change in california has been not just a policy exchange but big investments, more investments in education. You invested in childcare and early learning. Youre investing in climate response. And its not hurting growth. Its increasing growth. This is also an essential conversation were going to have over the next several months. The experience in california is so central to this because as youve invested, its not that california has declined. It has led the country in Economic Growth. Id love for you to talk about some of the investments you have made and how that is building inclusion, but not at the expense of growth. Its actually going handinhand with growth. Gov. Newsom that reminds me of a wonderful book called built to last. I recommend it for everybody. In politics, in business, in life. But theres a chapter called the tyranny of war. Our capacity to grow our economy was not done at the expense of the environment. Quite the contrary. The reason california enjoyed 3. 8 average gdp growth substantially outperforming the National Economy is because, not despite our progressive policies. We were able to create policy that created accelerants in terms of investment in the green space. Were in the process of radically changing the way we produce and consume energy and it stretched our system in the last week where weve had this world record heat. 130 degrees in palm springs. Weve had 376 fires because of lightning strikes. Weve been dealing with rapid acceleration where hot is getting hotter and drier is getting drier. Climate change is at the forefront of our consciousness. Also at the forefront of our policymaking. We have more Clean Energy Jobs than fossil fuel jobs. We have more innovation, more nobel laureates, more folks in venture capital, more investors in the space, and entrepreneurial spirit that is still alive and well. Theres anxiety at the moment. We all have anxiety related to covid and everything on your screen every afternoon. Theres Something Dynamic about this economy. Its absolutely because of progressive policy. We have the lowest population of inmates in california. Were aggressive in terms of cash. Were going to shut down two prisons, we just announced, in our state. Were reforming a number of prisons and cohoarding people in an energetic effort to reimagine rehabilitation in the state. The income weve provided over 3. 6 million families over the last month by improving our earned income tax credit to over 1 billion is second to none. Were investing in zero to three, not just preschool. Were beginning to develop longterm strategies across the spectrum in terms of addressing achievement gaps, which are really readiness gaps. We have a different mindset, a different approach. Situationally, were challenged like the rest of the nation. In this moment, perhaps more challenged than we have been in many years in the state with a confluence of things stacking on top of each other. We are committed to these progressive policies. Neera plus, you talked about climate. I want to drill down a little bit on that. In some ways, youre facing california faces the most dire impact from Climate Change. We just talked about the fires that have been ongoing. Now, annualized events. On the other hand, youre leading the country, not just operating as a state, internationally as a state across borders to address climate. Thats kind of innovative thinking we dont see a lot of. I wonder if you could drill down a little bit more about what you are doing on climate and where you see that going over the next year. Because i do think your examples have also really informed the joe biden strategy of how to invest ourw to climate challenges as a country. Gov. Newsom its progressive federalism. Despite the headwinds, were not victims. We can shape the future. Decisions not conditions determine our fate and future. With all due respect, might biggest critique of the trump my biggest critique of the Trump Administration is the victimization of everything. We have a different mindset. We take accountability. We take responsibility and we try to fix things and work to change the environment conditions, literally and figuratively. Theres a construct, we pulled out of the paris agreement. The governor of california pulled out of his driveway and flew to beijing and met with president xi to basically double down on the paris accords. Only california and a california governor, governor brown, couldve done that leading the charge with nations around the world to sign up on these protocols. Were doing the same thing with other states. Weve done low carbon vehicle emission standards. And that became the obamabiden standard. Trump rolls back. My only point is, we have capacity that is unlimited. As long as we allow ourselves to think beyond the constraints that we think limit our daytoday activities when it relates to our formal authority. We have the ability to exercise moral authority and thats a renewable resource. Those who exercise this formal authority every day, this command and control, it diminishes. The abundance, the mindset, not scarcity but the abundant mindset that has always been part of the frontier spirit of california, thats an opportunity to bring that mindset back into the national frame. So, im enlightened by that. Theres an entrepreneurial spirit of competition between states and governors and mayors and in that Entrepreneurial Energy is innovation. And thats what this state is all about. Neera great, and id like to followup on another point you made, which is on the transformation of the criminal Justice System. Referencing the 1990s, most of the campaigns were run on law and order. And i think california is ahead of the rest of the country. And i think its an innovation in itself to be able to is prisons and reform the criminal Justice System and move away from that. Given the conversation the country has been having on Police Brutality and the overreliance on the criminal Justice System essentially to solve problems. How are you looking at these challenges moving forward . Id love you to drill down on what youve done but also where youre heading in terms of Mental Health services criminalization, and whether youre seeing whether you can serve People Better and save money by less reliance on policing for issues that are Mental Health or social welfare problems. Gov. Newsom so, this state led the nation in an aggressive mindset to lock folks up and throw away the key. Three strikes. As i said, 1994 determines. I keep bringing up governor brown, sitting in his old office here at the governors mansion. Its hard not to be reminded of his leadership. But when he was first governor, and he was in his 30s, we had about 30,000 plus prisoners. Were now dropping below 100,000. Whats happened the last seven or eight years, we had many propositions past. Our Marijuana Legalization efforts, i was proud of that to be put on the ballot. Because of those reforms, we have been able to reduce our total prison population in a way that we have not seen a physically meaningful increase. Theres been some episodic, some regional increases, but not the aggregate of increase in violent crime. Again, any one criminal act is going to be exploited and is on a daily basis. Trust me, daily basis. But the trendlines are favorable. So, its a different mindset. And that mindset is bringing in that we have to commit ourselves. We led the nation and screwing it up. Now we have to lead in fixing it. The idea of even getting a budget passed, i never imagined it even two years ago. I never imagined that i would put a budget in that marked the moment where we shut down two prisons. Neera i know, its amazing. Gov. Newsom 20 prisons we built and only one new university. You cant make this stuff up. Now, were getting smarter, more resourceful, and were learning from best practices across the country. Were humble about what we know and what we dont know. We had the head of the