Arizona Week - March 1, 2013

>>> THE BUDGET REDUCTION KNOWN AS SEQUESTRATION IS UPON US. AS SEQUESTRATION IS UPON US. WILL IT BE A BIG WHACK WITH A WILL IT BE A BIG WHACK WITH A MEAT CLEAVER OR A SLOW DEATH BY MEAT CLEAVER OR A SLOW DEATH BY 1,000 CUTS? 1,000 CUTS? >> WHAT WE'RE LIKELY TO SEE IS >> WHAT WE'RE LIKELY TO SEE IS MAYBE 30,000 JOBS LOST IN MAYBE 30,000 JOBS LOST IN ARIZONA OVER ABOUT A TWO-YEAR ARIZONA OVER ABOUT A TWO-YEAR PERIOD. PERIOD. SO THAT'S ONE AREA WHERE THERE'S SO THAT'S ONE AREA WHERE THERE'S BEEN SOME EXAGGERATION, YOU BEEN SOME EXAGGERATION, YOU CAN'T HAVE EVERYTHING HAPPEN ALL CAN'T HAVE EVERYTHING HAPPEN ALL AT ONCE. AT ONCE. >> WE'LL LOOK AT THE IMPACT ON >> WE'LL LOOK AT THE IMPACT ON ARIZONA GOVERNMENT AND ECONOMY ARIZONA GOVERNMENT AND ECONOMY TONIGHT. TONIGHT. AND IS THE PUBLIC IS SERVED BY AND IS THE PUBLIC IS SERVED BY THE POLITICAL AND IMMEDIATE THE POLITICAL AND IMMEDIATE WHERE HYPE? WHERE HYPE? THIS IS "ARIZONA WEEKLY". THIS IS "ARIZONA WEEKLY". >>> ONCE AGAIN, YOUR MODERATOR. >>> ONCE AGAIN, YOUR MODERATOR. >> THAT NEW WORD IN THE >> THAT NEW WORD IN THE POLITICAL LEXICON, SEQUESTRATION POLITICAL LEXICON, SEQUESTRATION HAS POLITICIANS AND A GOOD SHARE HAS POLITICIANS AND A GOOD SHARE OF THE MEDIA IN A ADVERTISY. OF THE MEDIA IN A ADVERTISY. TIZZY. TIZZY. TONIGHT AT MIDNIGHT EASTERN TIME TONIGHT AT MIDNIGHT EASTERN TIME IS WHEN THE ACROSS THE BOARD IS WHEN THE ACROSS THE BOARD SPENDING CUTS KNOWN AS SPENDING CUTS KNOWN AS SEQUESTRATION TAKE EFFECT. SEQUESTRATION TAKE EFFECT. BY THE WHITE HOUSE'S ESTIMATE, BY THE WHITE HOUSE'S ESTIMATE, THE CUTS WILL TOTAL $78 MILLION THE CUTS WILL TOTAL $78 MILLION THIS YEAR ALONE. THIS YEAR ALONE. FIRST WE VISIT WITH ECONOMIST FIRST WE VISIT WITH ECONOMIST JIM ROUNDS FOR HIS ASSESSMENT OF JIM ROUNDS FOR HIS ASSESSMENT OF WHAT ALL THIS WILL DO TO THE WHAT ALL THIS WILL DO TO THE STILL FRAGILE ECONOMY. STILL FRAGILE ECONOMY. WELCOME MR. ROUNDS. WELCOME MR. ROUNDS. >> THANKS FOR HAVING ME BACK, I >> THANKS FOR HAVING ME BACK, I APPRECIATE IT. APPRECIATE IT. >> OVERALL, WHAT DO YOU SEE AS >> OVERALL, WHAT DO YOU SEE AS THE DIRECT IMPACT OF FEDERAL THE DIRECT IMPACT OF FEDERAL BUDGET CUTS ON ARIZONA'S BUDGET CUTS ON ARIZONA'S ECONOMY? ECONOMY? >> I THINK IT'S BEEN OVERPLAYED >> I THINK IT'S BEEN OVERPLAYED A LITTLE BIT MORE IN THE A LITTLE BIT MORE IN THE NATIONAL MEDIA. NATIONAL MEDIA. THE WAY THAT THIS WORKS IS THE WAY THAT THIS WORKS IS SEQUESTRATION JUST MEANS SOME SEQUESTRATION JUST MEANS SOME AUTOMATIC BUDGET CUTS WERE AUTOMATIC BUDGET CUTS WERE DESIGNED MANY MONTHS AGO AND DESIGNED MANY MONTHS AGO AND THEN THEY GET IMPLEMENTED TODAY. THEN THEY GET IMPLEMENTED TODAY. BUT IT'S NOT GOING TO BE QUITE BUT IT'S NOT GOING TO BE QUITE AS EXTREME BECAUSE A LOT OF AS EXTREME BECAUSE A LOT OF STUFF CAN BE WORKED OUT. STUFF CAN BE WORKED OUT. THESE THINGS TEND TO BE A LITTLE THESE THINGS TEND TO BE A LITTLE BIT SOFTER THAN HOW THEY'RE BIT SOFTER THAN HOW THEY'RE DESCRIBING IT AS BEING VERY DESCRIBING IT AS BEING VERY RIGID WHEN YOU HEAR ABOUT THE RIGID WHEN YOU HEAR ABOUT THE STORIES COMING OUT OF D.C. OR ON STORIES COMING OUT OF D.C. OR ON CNN OR WHATNOT. CNN OR WHATNOT. WHAT WE'RE LIKELY TO SEE IS AN WHAT WE'RE LIKELY TO SEE IS AN IMPACT OF MAYBE 30,000 JOBS LOST IMPACT OF MAYBE 30,000 JOBS LOST IN ARIZONA OVER ABOUT A TWO-YEAR IN ARIZONA OVER ABOUT A TWO-YEAR PERIOD. PERIOD. SO THAT'S ONE AREA WHERE THERE'S SO THAT'S ONE AREA WHERE THERE'S BEEN SOME EXAGGERATION. BEEN SOME EXAGGERATION. YOU CAN'T HAVE EVERYTHING HAPPEN YOU CAN'T HAVE EVERYTHING HAPPEN ALL AT ONCE, THE BUDGET ALL AT ONCE, THE BUDGET COMPONENT GETS PHASED IN AND ALL COMPONENT GETS PHASED IN AND ALL THOSE DYNAMIC IMPACTS, THE THOSE DYNAMIC IMPACTS, THE NEGATIVE DYNAMIC IMPACTS, LIKE NEGATIVE DYNAMIC IMPACTS, LIKE WHEN YOU REDUCE SPENDING, THAT'S WHEN YOU REDUCE SPENDING, THAT'S GOING TO TAKE A WHILE TO -- GOING TO TAKE A WHILE TO -- THERE'S BEEN SOME OTHER ANALYSIS THERE'S BEEN SOME OTHER ANALYSIS BY SOME UNIVERSITIES AND SOME BY SOME UNIVERSITIES AND SOME TRADE GROUPS AND THEY WERE TRADE GROUPS AND THEY WERE OVERSTATING THE IMPACT TO ABOUT OVERSTATING THE IMPACT TO ABOUT 50,000 JOBS IN ARIZONA. 50,000 JOBS IN ARIZONA. OUR BEST GUEST, AND I THINK OUR BEST GUEST, AND I THINK WE'RE IN THE BALLPARK IS WE'RE IN THE BALLPARK IS PROBABLY 30,000 IN A TWO-YEAR PROBABLY 30,000 IN A TWO-YEAR PERIOD. PERIOD. BUT I DON'T THINK THAT WILL BE BUT I DON'T THINK THAT WILL BE THAT EXTREME. THAT EXTREME. I THINK THERE WILL BE SOME I THINK THERE WILL BE SOME COMPROMISE ALONG THE WAY. COMPROMISE ALONG THE WAY. >> THE FULL IMPACT OF THE >> THE FULL IMPACT OF THE SEQUESTRATION TAKES FULL EFFECT SEQUESTRATION TAKES FULL EFFECT NEXT YEAR. NEXT YEAR. >> THE DYNAMIC EFFECTS. >> THE DYNAMIC EFFECTS. SO SAY A LITTLE BIT OF LESS SO SAY A LITTLE BIT OF LESS RETAIL ACTIVITY DOWN AT THE RETAIL ACTIVITY DOWN AT THE LOCAL McDONALD'S OR AT WALMART, LOCAL McDONALD'S OR AT WALMART, SO IT INCLUDES ALL THE SPINOFF SO IT INCLUDES ALL THE SPINOFF ACTIVITY AS WELL. ACTIVITY AS WELL. SO IT SOUNDS LIKE A VERY LARGE SO IT SOUNDS LIKE A VERY LARGE NUMBER, BUT IT ACTUALLY ONLY NUMBER, BUT IT ACTUALLY ONLY REPRESENTS ABOUT A QUARTER TO A REPRESENTS ABOUT A QUARTER TO A FIFTH OF THE GROWTH WE'RE FIFTH OF THE GROWTH WE'RE EXPECTING IN ARIZONA FOR THE EXPECTING IN ARIZONA FOR THE NEXT TWO YEARS. NEXT TWO YEARS. SO WE'RE ACTUALLY DAMPENING OUR SO WE'RE ACTUALLY DAMPENING OUR RATE OF GROWTH IN ARIZONA IS RATE OF GROWTH IN ARIZONA IS REALLY JUST A SMALL AMOUNT. REALLY JUST A SMALL AMOUNT. >> YOU WERE SAYING DEFENSE >> YOU WERE SAYING DEFENSE SPENDING HAS A BIG IMPACT IN SPENDING HAS A BIG IMPACT IN SOME OF THOSE SUB REGIONAL SOME OF THOSE SUB REGIONAL LEVELS IN THE STATE. LEVELS IN THE STATE. FOR EXAMPLE COCHISE COUNTY WHERE FOR EXAMPLE COCHISE COUNTY WHERE FT. HUACHUCA IS -- FT. HUACHUCA IS -- >> THEY WOULD HAVE A NEGATIVE >> THEY WOULD HAVE A NEGATIVE IMPACT FROM THAT SEQUESTRATION. IMPACT FROM THAT SEQUESTRATION. AND I THINK WHAT'S ALSO GOING TO AND I THINK WHAT'S ALSO GOING TO HAPPEN IS EVEN THOUGH THE CUTS HAPPEN IS EVEN THOUGH THE CUTS ARE BEING DESCRIBED AS ACROSS ARE BEING DESCRIBED AS ACROSS THE BOARD WHICH MEANS EVERY THE BOARD WHICH MEANS EVERY SINGLE PROGRAM IS IMPACTED ABOUT SINGLE PROGRAM IS IMPACTED ABOUT THE SAME. THE SAME. WITHIN THE NEXT COUPLE OF WEEKS WITHIN THE NEXT COUPLE OF WEEKS AND I FEEL VERY STRONGLY ABOUT AND I FEEL VERY STRONGLY ABOUT THIS, THE VERY FIRST COMPROMISE THIS, THE VERY FIRST COMPROMISE IS GOING TO BE TO LET THE IS GOING TO BE TO LET THE DIFFERENT DEPARTMENTS CHERRY DIFFERENT DEPARTMENTS CHERRY PICK WHERE THEY WANT TO CUT. PICK WHERE THEY WANT TO CUT. SO THEY FIRST COME UP WITH THAT SO THEY FIRST COME UP WITH THAT $85 BILLION OF SPENDING CUTS, $85 BILLION OF SPENDING CUTS, BUT AT THE MICROLEVEL, THEY CAN BUT AT THE MICROLEVEL, THEY CAN CHOOSE WHERE THE CUTS ARE GOING CHOOSE WHERE THE CUTS ARE GOING TO COME FROM. TO COME FROM. BUT I'M CONCERNED ABOUT TUCSON BUT I'M CONCERNED ABOUT TUCSON IN THE LONGER TERM. IN THE LONGER TERM. I'M STARTING TO BE MORE AND MORE I'M STARTING TO BE MORE AND MORE CONCERNED ABOUT THE TUCSON CONCERNED ABOUT THE TUCSON REGION OVER THE NEXT DECADE. REGION OVER THE NEXT DECADE. THIS IS JUST ADDING TO THE THIS IS JUST ADDING TO THE CONCERN. CONCERN. >> NOW AS THE POLITICIANS >> NOW AS THE POLITICIANS INTERPRET THE FACTS AROUND THIS, INTERPRET THE FACTS AROUND THIS, AND THEN AS WE IN THE MEDIA AND THEN AS WE IN THE MEDIA REINTERPRET THOSE FACTS, ARE WE REINTERPRET THOSE FACTS, ARE WE PLANTING INACCURATITIES IN THE PLANTING INACCURATITIES IN THE FIGURES AND IN THE FACTUAL FIGURES AND IN THE FACTUAL INFORMATION THAT'S GOING ON? INFORMATION THAT'S GOING ON? WHAT ARE YOU SEEING IN THAT WHAT ARE YOU SEEING IN THAT REGARD? REGARD? >> I THINK IT'S LESS PLANTING >> I THINK IT'S LESS PLANTING INACCURACIES, BUT MORE THAT INACCURACIES, BUT MORE THAT PEOPLE JUST DON'T KNOW HOW THIS PEOPLE JUST DON'T KNOW HOW THIS IS GOING TO PLAY OFF. IS GOING TO PLAY OFF. FOR EXAMPLE, WE HIT THE DATE FOR EXAMPLE, WE HIT THE DATE WHERE THE BUDGET CUTS OFFICIALLY WHERE THE BUDGET CUTS OFFICIALLY OCCUR. OCCUR. BUT IT'S A BUDGET, IT CAN BE BUT IT'S A BUDGET, IT CAN BE CHANGED LATER. CHANGED LATER. SO THE VERY FIRST THING YOU'RE SO THE VERY FIRST THING YOU'RE GOING TO SEE, IS GETTING MORE GOING TO SEE, IS GETTING MORE FLEXIBILITY TO THE CUTS. FLEXIBILITY TO THE CUTS. THEN OVER THE NEXT TWO OR THREE THEN OVER THE NEXT TWO OR THREE MONTHS, I THINK THAT $85 BILLION MONTHS, I THINK THAT $85 BILLION FIGURE IS GOING TO COME DOWN FIGURE IS GOING TO COME DOWN SOME. SOME. SO THERE ARE GOING TO BE SOME SO THERE ARE GOING TO BE SOME PROGRAMS THAT ARE HIT HARD. PROGRAMS THAT ARE HIT HARD. THERE ARE SOME PROGRAMS THAT THERE ARE SOME PROGRAMS THAT CAN'T BE IMPACTED. CAN'T BE IMPACTED. YOU'RE NOT GOING TO SEE SOCIAL YOU'RE NOT GOING TO SEE SOCIAL SECURITY, YOU'RE NOT GOING TO SECURITY, YOU'RE NOT GOING TO SEE MEDICAID AND THERE'S LIMITED SEE MEDICAID AND THERE'S LIMITED IMPACT TO MEDICAID. IMPACT TO MEDICAID. YOU'RE GOING TO SEE THE IMPACTS YOU'RE GOING TO SEE THE IMPACTS IN CERTAIN AREAS LIKE SIERRA IN CERTAIN AREAS LIKE SIERRA VISTA AND IN TUCSON. VISTA AND IN TUCSON. YOU'RE GOING TO SEE PROGRAMS YOU'RE GOING TO SEE PROGRAMS MORE IMPACTED THAN OTHERS MORE IMPACTED THAN OTHERS BECAUSE SOME FLEXIBILITY WILL BECAUSE SOME FLEXIBILITY WILL OCCUR, AND I'M HOPING THAT AT OCCUR, AND I'M HOPING THAT AT SOME POINT THERE WILL BE A SOME POINT THERE WILL BE A LITTLE BIT OF INTELLECT IN THE LITTLE BIT OF INTELLECT IN THE DISCUSSION IN WASHINGTON ABOUT DISCUSSION IN WASHINGTON ABOUT HOW THEY DO THIS. HOW THEY DO THIS. IF THEY DO THIS RIGHT, IF THEY IF THEY DO THIS RIGHT, IF THEY PHASE THIS OUT OVER THE NEXT PHASE THIS OUT OVER THE NEXT THREE YEARS, SOME OF IT GO IS THREE YEARS, SOME OF IT GO IS GOING TO HAPPEN NATURALLY. GOING TO HAPPEN NATURALLY. BUT THEY CAN ALSO PHASE THIS IN BUT THEY CAN ALSO PHASE THIS IN ANOTHER YEAR OR TWO, THEN THESE ANOTHER YEAR OR TWO, THEN THESE CUTS ARE GOING TO BE MAXIMIZING CUTS ARE GOING TO BE MAXIMIZING THEIR IMPACT AROUND WHEN THE THEIR IMPACT AROUND WHEN THE ECONOMY IS AT FULL STRENGTH. ECONOMY IS AT FULL STRENGTH. SO IF THEY CAN MAYBE TWEAK IT A SO IF THEY CAN MAYBE TWEAK IT A BIT, I THINK WE'RE GOING TO BE BIT, I THINK WE'RE GOING TO BE JUST FINE. JUST FINE. BUT AGAIN, CERTAIN SUB MARKETS, BUT AGAIN, CERTAIN SUB MARKETS, I'M NOT SURE WHERE THE MILITARY I'M NOT SURE WHERE THE MILITARY SPENDING ACTIVITY IS GOING TO SPENDING ACTIVITY IS GOING TO COME FROM, IF WE SEE D.O.D. CUTS COME FROM, IF WE SEE D.O.D. CUTS REGARDLESS OF SEQUESTRATION OVER REGARDLESS OF SEQUESTRATION OVER THE NEXT DECADE AND THAT'S WHY THE NEXT DECADE AND THAT'S WHY THE EXTRA CONCERN FOR SOUTHERN THE EXTRA CONCERN FOR SOUTHERN ARIZONA. ARIZONA. >> AND THEN WHEN PEOPLE HEAR >> AND THEN WHEN PEOPLE HEAR THAT, THAT THERE'S UNCERTAINTY THAT, THAT THERE'S UNCERTAINTY ABOUT WHAT WILL HAPPEN, THAT ABOUT WHAT WILL HAPPEN, THAT UNCERTAINTY ITSELF HAS AN IMPACT UNCERTAINTY ITSELF HAS AN IMPACT ON THE ECONOMY. ON THE ECONOMY. TALK ABOUT THAT A LITTLE BIT. TALK ABOUT THAT A LITTLE BIT. >> YOU HIT ON SOMETHING VERY >> YOU HIT ON SOMETHING VERY IMPORTANT. IMPORTANT. THE RISK OF THE TAX INCREASES THE RISK OF THE TAX INCREASES WHICH THAT ISSUE WAS FOR THE WHICH THAT ISSUE WAS FOR THE MOST PART RESOLVED ALREADY, MOST PART RESOLVED ALREADY, IMPACTED THE ECONOMIC DATA OR IMPACTED THE ECONOMIC DATA OR THE LAST SIX MONTHS. THE LAST SIX MONTHS. THAT'S WHAT I SAW. THAT'S WHAT I SAW. THE RISK OF THE BUDGET CUTS, THE RISK OF THE BUDGET CUTS, JUST THE DISCUSSION OF IT JUST THE DISCUSSION OF IT IMPACTED THE ECONOMIC DATA FOR IMPACTED THE ECONOMIC DATA FOR THE LAST SIX MONTHS. THE LAST SIX MONTHS. SO SOME OF THE IMPACT HAS SO SOME OF THE IMPACT HAS ALREADY BEEN REALIZED AND ALREADY BEEN REALIZED AND BECAUSE THIS ISN'T A HARD DIET BECAUSE THIS ISN'T A HARD DIET AND THEY'RE GOING TO BE AND THEY'RE GOING TO BE BICKERING OVER THIS FOR THE NEXT BICKERING OVER THIS FOR THE NEXT SEVERAL MONTHS, IT JUST MEANS SEVERAL MONTHS, IT JUST MEANS WE'RE GOING TO HAVE MORE OF THE WE'RE GOING TO HAVE MORE OF THE YEAR THAT FALLS UNDER THAT YEAR THAT FALLS UNDER THAT UNCERTAIN CATEGORY, WHICH WILL UNCERTAIN CATEGORY, WHICH WILL AFFECT US IN THIS CALENDAR YEAR. AFFECT US IN THIS CALENDAR YEAR. >> SO EVERYONE IS TALKING ABOUT >> SO EVERYONE IS TALKING ABOUT THE IMPORTANCE OF GETTING THE THE IMPORTANCE OF GETTING THE FEDERAL DEBT AND THE BUDGET FEDERAL DEBT AND THE BUDGET DEFICIT UNDER CONTROL. DEFICIT UNDER CONTROL. HOW CAN THOSE THINGS BE HOW CAN THOSE THINGS BE ACCOMPLISHED WITHOUT REALLY ACCOMPLISHED WITHOUT REALLY HARMING THE ECONOMY? HARMING THE ECONOMY? >> WELL, YOU HAVE TO DO IT >> WELL, YOU HAVE TO DO IT STRATEGICALLY AND U YOU HAVE TO STRATEGICALLY AND U YOU HAVE TO DO IT AT THE RIGHT TIME. DO IT AT THE RIGHT TIME. BUT ONE THING TO KEEP IN MIND IS BUT ONE THING TO KEEP IN MIND IS THAT YOU CAN CUT A MASSIVE THAT YOU CAN CUT A MASSIVE PERCENTAGE OF THE FEDERAL BUDGET PERCENTAGE OF THE FEDERAL BUDGET AND WE'RE STILL IN A DEFICIT AND WE'RE STILL IN A DEFICIT SITUATION. SITUATION. AND SO WHAT THEY NEED IS A PLAN AND SO WHAT THEY NEED IS A PLAN TO GET THINGS RESOLVED OVER THE TO GET THINGS RESOLVED OVER THE NEXT TEN OR 15 YEARS. NEXT TEN OR 15 YEARS. YOU CAN'T DO IT OVERNIGHT AND YOU CAN'T DO IT OVERNIGHT AND THAT'S WHY, EVEN THOUGH I LIKE THAT'S WHY, EVEN THOUGH I LIKE THE IDEA OF SEQUESTRATION, WHICH THE IDEA OF SEQUESTRATION, WHICH JUST MEANS THEY'RE HAVING TO JUST MEANS THEY'RE HAVING TO BALANCE THEIR CHECKBOOK A BIT, BALANCE THEIR CHECKBOOK A BIT, IF THEY CAN PHASE IT IN, THERE'S IF THEY CAN PHASE IT IN, THERE'S NOTHING WRONG WITH DOING THAT. NOTHING WRONG WITH DOING THAT. >> AND WE HAVE JUST ABOUT A >> AND WE HAVE JUST ABOUT A MINUTE REMAINING, DURING THAT MINUTE REMAINING, DURING THAT TIME, GIVE US YOUR ASSESSMENT ON TIME, GIVE US YOUR ASSESSMENT ON WHETHER ANY OR PARTS OF THIS ARE WHETHER ANY OR PARTS OF THIS ARE GOING TO CAUSE US TO GO INTO GOING TO CAUSE US TO GO INTO ANOTHER RECESSION, EITHER IN ANOTHER RECESSION, EITHER IN ARIZONA OR NATIONALLY? ARIZONA OR NATIONALLY? >> NO RECESSION. >> NO RECESSION. I SAW ONE ESTIMATE WHERE IT WAS I SAW ONE ESTIMATE WHERE IT WAS GOING TO LOP OFF ABOUT GOING TO LOP OFF ABOUT TWO-THIRDS OF GDP THIS CALENDAR TWO-THIRDS OF GDP THIS CALENDAR YEAR. YEAR. >> TWO-THIRDS OF THE EXPECTED >> TWO-THIRDS OF THE EXPECTED GROWTH, SO INSTEAD OF GROWING GROWTH, SO INSTEAD OF GROWING 2%, WE'RE GOING TO SEE A THIRD 2%, WE'RE GOING TO SEE A THIRD OF THAT. OF THAT. AGAIN IN ARIZONA, AND WE AGAIN IN ARIZONA, AND WE DETERMINE WHETHER OR NOT WE'RE DETERMINE WHETHER OR NOT WE'RE IN A RECESSION BASED ON IN A RECESSION BASED ON EMPLOYMENT FOR THE MOST PART, A EMPLOYMENT FOR THE MOST PART, A QUARTER TO A FIFTH OF OUR QUARTER TO A FIFTH OF OUR EXPECTED GROWTH WILL BE CLUTCHED EXPECTED GROWTH WILL BE CLUTCHED OFF, BUT WE'RE STILL GOING TO BE OFF, BUT WE'RE STILL GOING TO BE GROWING AT A DECENT RATE. GROWING AT A DECENT RATE. SO STATE WIDE, WE'RE GOING TO BE SO STATE WIDE, WE'RE GOING TO BE JUST FINE. JUST FINE. >> JIM ROUNDS, THANKS FOR >> JIM ROUNDS, THANKS FOR SPEAKING WITH ME. SPEAKING WITH ME. >> GOOD TO SEE YOU. >> GOOD TO SEE YOU. >>> NOW SOME FACTS AND FIGURES >>> NOW SOME FACTS AND FIGURES ON THE BUDGET CUTS AS THEY MAY ON THE BUDGET CUTS AS THEY MAY AFFECT ARIZONA. AFFECT ARIZONA. OFFICIALS AT DAVIS MUNSON AIR OFFICIALS AT DAVIS MUNSON AIR FORCE BASE IN TUCSON SAY 600 FORCE BASE IN TUCSON SAY 600 MILLION WORKERS STATE WIDE WOULD MILLION WORKERS STATE WIDE WOULD HAVE TO TAKE FURLOW INDICATES IN HAVE TO TAKE FURLOW INDICATES IN THE NEXT SEVEN MONTHS AND FLIGHT THE NEXT SEVEN MONTHS AND FLIGHT TRAINING COULD BE CURTAILED. TRAINING COULD BE CURTAILED. THE WHITE HOUSE SAYS THE WHITE HOUSE SAYS INFILTRATION SERVICES COULD BE INFILTRATION SERVICES COULD BE CUT BY 30 -- INCLUDING A CUT BY 30 -- INCLUDING A POTENTIAL CUT TO HEAD START POTENTIAL CUT TO HEAD START PROGRAMS. PROGRAMS. TO DISCUSS THAT, MARGARET MALLOY TO DISCUSS THAT, MARGARET MALLOY JOINS ME. JOINS ME. SHE'S THE EXECUTIVE DIRECTOR OF SHE'S THE EXECUTIVE DIRECTOR OF TUCSON'S CHILD PARENT CENTERS TUCSON'S CHILD PARENT CENTERS WHICH RUN LOCAL AND S.T.A.R.T. WHICH RUN LOCAL AND S.T.A.R.T. PROGRAMS. PROGRAMS. WELCOME. WELCOME. >> THANK YOU, MICHAEL. >> THANK YOU, MICHAEL. >> HOW MANY CHILDREN SERVED IN >> HOW MANY CHILDREN SERVED IN ARIZONA BY HEAD START? ARIZONA BY HEAD START? THERE ARE 22,000 CHILDREN SERVED THERE ARE 22,000 CHILDREN SERVED EVERY YEAR IN ARIZONA. EVERY YEAR IN ARIZONA. >> AND HOW MANY IN SOUTHEASTERN >> AND HOW MANY IN SOUTHEASTERN ARIZONA? ARIZONA? >> WE SERVE 4,300 CHILDREN. >> WE SERVE 4,300 CHILDREN. >> WHE >> WHE >> -- WE RECEIVE $24 MILLION A >> -- WE RECEIVE $24 MILLION A YEAR. YEAR. >> $24 MILLION IS THAT JUST FOR >> $24 MILLION IS THAT JUST FOR SOUTHEASTERN ARIZONA. SOUTHEASTERN ARIZONA. >> THAT'S JUST FOR SOUTHEASTERN >> THAT'S JUST FOR SOUTHEASTERN ARIZONA. ARIZONA. >> AND DO YOU KNOW THE STATE >> AND DO YOU KNOW THE STATE WIDE FIGURE? WIDE FIGURE? >> NO, I DON'T. >> NO, I DON'T. >> WHAT'S THE POTENTIAL IMPACT >> WHAT'S THE POTENTIAL IMPACT ON CHILDREN FROM THE CUTS? ON CHILDREN FROM THE CUTS? >> WE HAVE NOT HAD ANY >> WE HAVE NOT HAD ANY INFORMATION, AND THEN THIS INFORMATION, AND THEN THIS AMONG, THINGS WERE FINALIZED AMONG, THINGS WERE FINALIZED APPARENTLY AND WE RECEIVED A APPARENTLY AND WE RECEIVED A NOTICE THAT WE ARE EXPECTING A NOTICE THAT WE ARE EXPECTING A CUT OF APPROXIMATELY 5%. CUT OF APPROXIMATELY 5%. >> 5% OF THE $24 MILLION. >> 5% OF THE $24 MILLION. >> 5% OF THE $24 MILLION, YES, >> 5% OF THE $24 MILLION, YES, SO WELL OVER A MILLION DOLLARS. SO WELL OVER A MILLION DOLLARS. >> SO WHAT WILL THE IMPACT OF >> SO WHAT WILL THE IMPACT OF THAT BE IF YOU HAD TO PUT THAT THAT BE IF YOU HAD TO PUT THAT FORTH IN THE NEXT FEW MONTHS FOR FORTH IN THE NEXT FEW MONTHS FOR CHILDREN AND STAFFING? CHILDREN AND STAFFING? >> WE HAVE SPECIFICALLY BEEN >> WE HAVE SPECIFICALLY BEEN INSTRUCTED THAT THE PRIORITY IS INSTRUCTED THAT THE PRIORITY IS TO CONTINUE SERVICES TO CHILDREN TO CONTINUE SERVICES TO CHILDREN WHO ARE ENROLLED AT THIS TIME, WHO ARE ENROLLED AT THIS TIME, CONTINUE THE SCHOOL YEAR, AND CONTINUE THE SCHOOL YEAR, AND THAT WE ARE TO CONTINUE TO THAT WE ARE TO CONTINUE TO PROVIDE HIGH QUALITY SERVICES PROVIDE HIGH QUALITY SERVICES AND OF COURSE THE CONTINUED AND OF COURSE THE CONTINUED FOCUS ON HEALTH AND SAFETY. FOCUS ON HEALTH AND SAFETY. BECAUSE OF THE WAY THE FUNDING BECAUSE OF THE WAY THE FUNDING WORKS WITH THE FEDERAL WORKS WITH THE FEDERAL GOVERNMENT, CUTS FOR GOVERNMENT, CUTS FOR CHILD-PARENT CENTER SERVICES CHILD-PARENT CENTER SERVICES WOULD TAKE EFFECT IN SEPTEMBER. WOULD TAKE EFFECT IN SEPTEMBER. >> SO WE'RE GOOD FOR A FEW >> SO WE'RE GOOD FOR A FEW MONTHS, AT LEAST? MONTHS, AT LEAST? >> SO WE'RE GOOD FOR A FEW >> SO WE'RE GOOD FOR A FEW MONTHS AND WE'RE REALLY FOCUSED MONTHS AND WE'RE REALLY FOCUSED ON WHAT CAN WE DO IN TERMS OF ON WHAT CAN WE DO IN TERMS OF BEING IN CONTACT WITH CONGRESS BEING IN CONTACT WITH CONGRESS TO HAVE THIS SEQUESTRATION TO HAVE THIS SEQUESTRATION CHANGE, STOPPED, LOOK AT THE CHANGE, STOPPED, LOOK AT THE VALUES OF WHAT AMERICA NEEDS, VALUES OF WHAT AMERICA NEEDS, WHAT ARIZONA NEEDS, LOOK AT WHAT WHAT ARIZONA NEEDS, LOOK AT WHAT EDUCATION IS NEEDED FOR VERY EDUCATION IS NEEDED FOR VERY YOUNG CHILDREN AND WE REALLY YOUNG CHILDREN AND WE REALLY DON'T HAVE TO HAVE THIS HAPPEN. DON'T HAVE TO HAVE THIS HAPPEN. BUT THAT'S OUR FOCUS RIGHT NOW. BUT THAT'S OUR FOCUS RIGHT NOW. >> AND HAVE YOU SAT DOWN TO TRY >> AND HAVE YOU SAT DOWN TO TRY TO FIGURE OUT HOW MANY CHILDREN TO FIGURE OUT HOW MANY CHILDREN WOULD BE IMPACTED, HOW MANY WOULD BE IMPACTED, HOW MANY STAFF WOULD BE AFFECTED BY THE STAFF WOULD BE AFFECTED BY THE CHANGE OF 5%? CHANGE OF 5%? >> WE SPECIFICALLY, BECAUSE, >> WE SPECIFICALLY, BECAUSE, AGAIN, OF OUR FUNDING TIMELINE, AGAIN, OF OUR FUNDING TIMELINE, WE HAVE NOT DONE THAT. WE HAVE NOT DONE THAT. WE NEVER EXPECTED THIS TO WE NEVER EXPECTED THIS TO HAPPEN, NO ONE EXPECTED THAT TO HAPPEN, NO ONE EXPECTED THAT TO HAPPEN. HAPPEN. THIS ISN'T GOOD FOR ARIZONA AND THIS ISN'T GOOD FOR ARIZONA AND OUR FOCUS IS GOING TO BE ON OUR FOCUS IS GOING TO BE ON GETTING IT STOPPED AND IF THE GETTING IT STOPPED AND IF THE TIME COMES THAT WE MUST FOCUS ON TIME COMES THAT WE MUST FOCUS ON THE CUTS, THEN WE'LL DO THAT. THE CUTS, THEN WE'LL DO THAT. >> HOW MANY PEOPLE WORK FOR >> HOW MANY PEOPLE WORK FOR CHILD-PARENT CENTERS NOW? CHILD-PARENT CENTERS NOW? >> WE HAVE OVER 500 EMPLOYEES. >> WE HAVE OVER 500 EMPLOYEES. >> 500? >> 500? AND MOST OF THOSE ARE IN THE AND MOST OF THOSE ARE IN THE CLASSROOM, I PRESUME? CLASSROOM, I PRESUME? >> MOST OF THOSE ARE AT CENTERS, >> MOST OF THOSE ARE AT CENTERS, IN THE CLASSROOM, COOKING FOR IN THE CLASSROOM, COOKING FOR THE CHILDREN, DOING THE FAMILY THE CHILDREN, DOING THE FAMILY SUPPORT PIECES, YES, MOST OF OUR SUPPORT PIECES, YES, MOST OF OUR EMPLOYEES ARE OUT IN THE FIELD. EMPLOYEES ARE OUT IN THE FIELD. >> IF CHANGES HAVE TO BE MAID, >> IF CHANGES HAVE TO BE MAID, IF REDUCTIONS HAVE TO BE MADE, IF REDUCTIONS HAVE TO BE MADE, WHAT'S THE IMPACT QUALITATIVELY WHAT'S THE IMPACT QUALITATIVELY ON A CHILD AS FAR AS DEVELOPMENT ON A CHILD AS FAR AS DEVELOPMENT GOES IN EDUCATION? GOES IN EDUCATION? >> WELL THE FOCUS, THE GOAL OF >> WELL THE FOCUS, THE GOAL OF HEADSTART IS SCHOOL READINESS, HEADSTART IS SCHOOL READINESS, SO WE'RE TALKING ABOUT CHILDREN SO WE'RE TALKING ABOUT CHILDREN GOING INTO KINDERGARTEN READY TO GOING INTO KINDERGARTEN READY TO SUCCEED, CHILDREN WHO KNOW HOW SUCCEED, CHILDREN WHO KNOW HOW TO WRITE THEIR OWN NAME, THEY TO WRITE THEIR OWN NAME, THEY KNOW THEIR ADDRESS, THEY LOVE KNOW THEIR ADDRESS, THEY LOVE BOOKS, THEY'RE LITERATE, THEY DO BOOKS, THEY'RE LITERATE, THEY DO EARLY MATH. EARLY MATH. SO ALL OF THOSE SKILLS ARE LOST SO ALL OF THOSE SKILLS ARE LOST ON A CHILD WHO DOESN'T HAVE A ON A CHILD WHO DOESN'T HAVE A HIGH QUALITY PRESCHOOL HIGH QUALITY PRESCHOOL EXPERIENCE. EXPERIENCE. >> SO THAT WOULD BE A CHILD >> SO THAT WOULD BE A CHILD GOING INTO KINDERGARTEN WITHOUT GOING INTO KINDERGARTEN WITHOUT THOSE SKILLS AND THUS BE PERHAPS THOSE SKILLS AND THUS BE PERHAPS BEHIND OTHER CHILDREN THERE? BEHIND OTHER CHILDREN THERE? >> VERY MUCH SO. >> VERY MUCH SO. AND REMEMBERING, HEAD STARRED IS AND REMEMBERING, HEAD STARRED IS ONLY FOR INCOME ELIGIBLE ONLY FOR INCOME ELIGIBLE FAMILIES. FAMILIES. SO FOR A FAMILY OF FOUR TO SO FOR A FAMILY OF FOUR TO QUALIFY FOR HEAD START, THE QUALIFY FOR HEAD START, THE MAXIMUM INCOME IS $22,500 A MAXIMUM INCOME IS $22,500 A YEAR. YEAR. SO WE'RE NOT TALKING ABOUT SO WE'RE NOT TALKING ABOUT FAMILIES WHO CAN THEN GO TO FAMILIES WHO CAN THEN GO TO ANOTHER PRESCHOOL AND CAN ANOTHER PRESCHOOL AND CAN REPLACE HEAD START. REPLACE HEAD START. >> AND IN TERMS OF FAMILIES, I'M >> AND IN TERMS OF FAMILIES, I'M ASSUMING THAT SENDING A CHILD TO ASSUMING THAT SENDING A CHILD TO HEAD START OR HAVING A CHILD HEAD START OR HAVING A CHILD ENROLLED IN HEAD START IS PART ENROLLED IN HEAD START IS PART OF THE DAYCARE PROCESS FOR OF THE DAYCARE PROCESS FOR FAMILIES. FAMILIES. TALK ABOUT THAT A LITTLE BIT. TALK ABOUT THAT A LITTLE BIT. >> YES, OUR FAMILIES ARE VERY >> YES, OUR FAMILIES ARE VERY MUCH EXTENDED FAMILIES SO HEAD MUCH EXTENDED FAMILIES SO HEAD START FILLS A VERY SPECIFIC START FILLS A VERY SPECIFIC BLOCK OF TIME FOR THE DAY. BLOCK OF TIME FOR THE DAY. MOST OF OUR PROGRAMS ARE PART MOST OF OUR PROGRAMS ARE PART DAY PROGRAMS. DAY PROGRAMS. AND SO THE FAMILY USES HEAD AND SO THE FAMILY USES HEAD START AS PART OF IT CHILD CAR START AS PART OF IT CHILD CAR NETWORK AND USE FAMILY MEMBERS NETWORK AND USE FAMILY MEMBERS FOR THE OTHER PART. FOR THE OTHER PART. IT REALLY MAKES A GOOD IT REALLY MAKES A GOOD COMBINATION FOR THE CHILD IN THE COMBINATION FOR THE CHILD IN THE FAMILY. FAMILY. AND AND >> WE HAVE A LITTLE LESS THAN A >> WE HAVE A LITTLE LESS THAN A MINUTE REMAINING, AND IN THAT MINUTE REMAINING, AND IN THAT TIME, MS. MALLOY, TELL OUR TIME, MS. MALLOY, TELL OUR VIEWERS WHAT THEY OUGHT TO KNOW VIEWERS WHAT THEY OUGHT TO KNOW AND BE ABLE TO DO TO PREVENT AND BE ABLE TO DO TO PREVENT CUTS TO HEAD START? CUTS TO HEAD START? >> WHAT THEY OUGHT TO KNOW IS >> WHAT THEY OUGHT TO KNOW IS THAT HEAD START IS A WONDERFUL, THAT HEAD START IS A WONDERFUL, STRONG SCHOOL READINESS PROGRAM, STRONG SCHOOL READINESS PROGRAM, IT IS EXACTLY WHAT ARIZONA IT IS EXACTLY WHAT ARIZONA NEEDS. NEEDS. AND THE WAY THEY CAN HELP HEAD AND THE WAY THEY CAN HELP HEAD START AND OTHER PROGRAMS FOR START AND OTHER PROGRAMS FOR CHILDREN AND FAMILIES, IS TO CHILDREN AND FAMILIES, IS TO CONTACT THEIR SENATORS AND THEIR CONTACT THEIR SENATORS AND THEIR CONGRESSMEN, EVERY DAY AND KEEP CONGRESSMEN, EVERY DAY AND KEEP ASKING FOR ACTION ON ASKING FOR ACTION ON SEQUESTRATION. SEQUESTRATION. STOP THOSE CUTS THAT AREN'T STOP THOSE CUTS THAT AREN'T NECESSARY, INCLUDING HEAD NECESSARY, INCLUDING HEAD START'S CUTS. START'S CUTS. >> MARGARET MALLOY, EXECUTIVE >> MARGARET MALLOY, EXECUTIVE DIRECTOR OF CHILD-PARENT CENTERS DIRECTOR OF CHILD-PARENT CENTERS OF TUCSON, WHICH RUNS THE HEAD OF TUCSON, WHICH RUNS THE HEAD START PROGRAM FOR SOUTHEASTERN START PROGRAM FOR SOUTHEASTERN ARIZONA. ARIZONA. THANKS SO MUCH FOR BEING WITH THANKS SO MUCH FOR BEING WITH US. US. >> THANK YOU FOR HAVING ME. >> THANK YOU FOR HAVING ME. >>> ANOTHER ASPECT OF THE IT >>> ANOTHER ASPECT OF THE IT CUTS IS FEDERAL SUPPORT FOR CUTS IS FEDERAL SUPPORT FOR HIGHER EDUCATION IN THE FORM OF HIGHER EDUCATION IN THE FORM OF SCHOLARSHIPS, STUDY GRANTS, SCHOLARSHIPS, STUDY GRANTS, STUDENT LOANS AND WORK STUDY STUDENT LOANS AND WORK STUDY PROGRAMS. PROGRAMS. HERE TO TELL US THE EFFECTS OF HERE TO TELL US THE EFFECTS OF THE CUTS FOR COLLEGE STUDENTS IN THE CUTS FOR COLLEGE STUDENTS IN THE STATE IS JOHN NAMATH, THE STATE IS JOHN NAMATH, EXECUTIVE DIRECTOR OF FINANCIAL EXECUTIVE DIRECTOR OF FINANCIAL AID AT THE UNIVERSITY OF AID AT THE UNIVERSITY OF ARIZONA. ARIZONA. GOOD EVENING, MICHAEL. GOOD EVENING, MICHAEL. >> GOOD TO BE HERE. >> GOOD TO BE HERE. >> WHAT ARE THE EFFECTS OVERALL >> WHAT ARE THE EFFECTS OVERALL STATE WIDE FOR THE THREE STATE STATE WIDE FOR THE THREE STATE UNIVERSITIES? UNIVERSITIES? >> THE EFFECTS STATE WIDE ARE >> THE EFFECTS STATE WIDE ARE PRETTY MUCH PROPORTIONAL BETWEEN PRETTY MUCH PROPORTIONAL BETWEEN THE THREE UNIVERSITIES. THE THREE UNIVERSITIES. FOR EXAMPLE, ON THE WORK STUDY FOR EXAMPLE, ON THE WORK STUDY PROGRAM, WE EXPECT TO LOSE ABOUT PROGRAM, WE EXPECT TO LOSE ABOUT $110,000 AT THE UNIVERSITY OF $110,000 AT THE UNIVERSITY OF ARIZONA, ASU'S CUTS WILL BE ARIZONA, ASU'S CUTS WILL BE ABOUT $202,000 AND NAU, 34,000, ABOUT $202,000 AND NAU, 34,000, AND THAT'S REALLY PROPORTIONATE AND THAT'S REALLY PROPORTIONATE TO THE NUMBER OF STUDENTS AND TO THE NUMBER OF STUDENTS AND THEIR ALLOCATIONS. THEIR ALLOCATIONS. >> AND WE NEED TO MAKE IT CLEAR >> AND WE NEED TO MAKE IT CLEAR FOR OUR VIEWERS, THAT THESE CUTS FOR OUR VIEWERS, THAT THESE CUTS WOULD THEY CAN AFFECT NEXT WOULD THEY CAN AFFECT NEXT FISCAL YEAR OR NEXT SCHOOL YEAR. FISCAL YEAR OR NEXT SCHOOL YEAR. CURRENTLY FUNDING WON'T CHANGE, CURRENTLY FUNDING WON'T CHANGE, IS THAT CORRECT? IS THAT CORRECT? >> THAT'S CORRECT. >> THAT'S CORRECT. THIS FINANCIAL AID PORTION OF THIS FINANCIAL AID PORTION OF THE SEQUESTRATION DOES NOT BEGIN THE SEQUESTRATION DOES NOT BEGIN UNTIL THE NEXT ACADEMIC YEAR. UNTIL THE NEXT ACADEMIC YEAR. >> LET'S TALK ABOUT THE EFFECTS >> LET'S TALK ABOUT THE EFFECTS HERE AT THE UNIVERSITY OF HERE AT THE UNIVERSITY OF ARIZONA, HOW MANY STUDENTS DO ARIZONA, HOW MANY STUDENTS DO YOU THINK WILL BE AFFECTED BY YOU THINK WILL BE AFFECTED BY CHANGES IN THEIR FINANCIAL AID CHANGES IN THEIR FINANCIAL AID IN THE NEXT YEAR? IN THE NEXT YEAR? >> OKAY SO FOR 13-14, WE HAVE >> OKAY SO FOR 13-14, WE HAVE SOME PLANNING TIMES, SO MY SOME PLANNING TIMES, SO MY ANSWER COULD BE PROPORTIONATELY ANSWER COULD BE PROPORTIONATELY 22 OR 23 STUDENTS IN WORK STUDY, 22 OR 23 STUDENTS IN WORK STUDY, OR SINCE WE DO HAVE PLANNING OR SINCE WE DO HAVE PLANNING TIME, IT MIGHT REDUCE EACH TIME, IT MIGHT REDUCE EACH PERSON'S JOB BY $60. PERSON'S JOB BY $60. SO DEPENDING ON HOW WE END UP SO DEPENDING ON HOW WE END UP PLANNING TO DEAL WITH THIS, IT PLANNING TO DEAL WITH THIS, IT COULD BE A MINIMAL IMPACT OR 25 COULD BE A MINIMAL IMPACT OR 25 STUDENTS COULD END UP WITH, YOU STUDENTS COULD END UP WITH, YOU KNOW, NOT THAT SUPPORT. KNOW, NOT THAT SUPPORT. >> WHEN YOU SAY $60, IS THAT >> WHEN YOU SAY $60, IS THAT WEEKLY SALARY? WEEKLY SALARY? IS THAT OVER THE COURSE OF A IS THAT OVER THE COURSE OF A SEMESTER? SEMESTER? >> THE QUESTION, OUR AVERAGE, >> THE QUESTION, OUR AVERAGE, WHICH IS NOT ALWAYS THE TYPICAL WHICH IS NOT ALWAYS THE TYPICAL JOBS, AVERAGE JOB ON THE FEDERAL JOBS, AVERAGE JOB ON THE FEDERAL WORK STUDY PROGRAM IS ABOUT WORK STUDY PROGRAM IS ABOUT $2,500 DURING THE ACADEMIC YEAR. $2,500 DURING THE ACADEMIC YEAR. SO $60 WOULD MEAN $2,420. SO $60 WOULD MEAN $2,420. THE PEOPLE IN THE FINANCIAL AID THE PEOPLE IN THE FINANCIAL AID OFFICE ARE MORE LIKELY TO EARN OFFICE ARE MORE LIKELY TO EARN CLOSE TO $6,000 DURING THE CLOSE TO $6,000 DURING THE SCHOOL YEAR. SCHOOL YEAR. >> THIS IS WHAT STUDENTS MAKE IN >> THIS IS WHAT STUDENTS MAKE IN JOBS FOR -- SCHOLARSHIPS AND JOBS FOR -- SCHOLARSHIPS AND OTHER FINANCIAL AID, PELL GRANTS OTHER FINANCIAL AID, PELL GRANTS FOR EXAMPLE, WHICH IS A BIG PART FOR EXAMPLE, WHICH IS A BIG PART OF THE FEDERAL SUBSIDY IF YOU OF THE FEDERAL SUBSIDY IF YOU WILL TO STUDENT EDUCATION, WILL TO STUDENT EDUCATION, WHAT'S GOING ON WITH THOSE? WHAT'S GOING ON WITH THOSE? >> OKAY, PELL GRANT IS THE STORY >> OKAY, PELL GRANT IS THE STORY WE DON'T KNOW YET. WE DON'T KNOW YET. SO PELL GRANTS WILL NOT BE SO PELL GRANTS WILL NOT BE IMPACTED, WILL NOT BE IN IMPACTED, WILL NOT BE IN '13-'14. '13-'14. AND TO GIVE A LITTLE METRICS AND TO GIVE A LITTLE METRICS THERE, PELL GRANTS BRING IN THERE, PELL GRANTS BRING IN ABOUT $45 MILLION TO THE ABOUT $45 MILLION TO THE UNIVERSITY OF ARIZONA UNDER UNIVERSITY OF ARIZONA UNDER GRADUATES, ABOUT 10,500 GRADUATES, ABOUT 10,500 STUDENTS. STUDENTS. NEXT YEAR, NO IMPACT. NEXT YEAR, NO IMPACT. AFTER THAT, I DON'T KNOW. AFTER THAT, I DON'T KNOW. >> AND PELL GRANTS ARE A FEDERAL >> AND PELL GRANTS ARE A FEDERAL PROGRAM NAMED FOR A FORMER PROGRAM NAMED FOR A FORMER MEMBER OF CONGRESS, CLAIBORNE MEMBER OF CONGRESS, CLAIBORNE PELL WHO FOUNDED THE PROGRAM PELL WHO FOUNDED THE PROGRAM THROUGH LEGISLATION MANY YEARS THROUGH LEGISLATION MANY YEARS AGO. AGO. WHAT EXACTLY IS A PELL GRANT? WHAT EXACTLY IS A PELL GRANT? WHO GETS A PELL GRANT? WHO GETS A PELL GRANT? >> PELL GRANTS ARE GIVEN TO >> PELL GRANTS ARE GIVEN TO STUDENTS AT THE LOWER INCOME STUDENTS AT THE LOWER INCOME LEVELS AND THAT COULD EXTEND, IF LEVELS AND THAT COULD EXTEND, IF THERE ARE ENOUGH FAMILY MEMBERS THERE ARE ENOUGH FAMILY MEMBERS IN COLLEGE FOR INSTANCE, TO IN COLLEGE FOR INSTANCE, TO FAMILIES 70,000 $70,000 TO $80,. FAMILIES 70,000 $70,000 TO $80,. TYPICALLY IT'S A FAMILY THAT'S TYPICALLY IT'S A FAMILY THAT'S EARNING UNDER $40,000, THOSE EARNING UNDER $40,000, THOSE STUDENTS CAN GET UP TO $5,500 STUDENTS CAN GET UP TO $5,500 PER ACADEMIC YEAR IF THEY'RE PER ACADEMIC YEAR IF THEY'RE FULL-TIME. FULL-TIME. >> AND THAT'S ABOUT HALF OF THE >> AND THAT'S ABOUT HALF OF THE IN STATE TUITION HERE AT THE U IN STATE TUITION HERE AT THE U OF A, IS THAT CORRECT? OF A, IS THAT CORRECT? >> RIGHT, IT'S JUST A LITTLE >> RIGHT, IT'S JUST A LITTLE OVER HALF OF THE TUITION AND OVER HALF OF THE TUITION AND FEES IS RIGHT AT 3,400 AT THIS FEES IS RIGHT AT 3,400 AT THIS POINT. POINT. SO A PELL GRANT WOULD COVER A SO A PELL GRANT WOULD COVER A LITTLE OVER HALF OF THAT. LITTLE OVER HALF OF THAT. >> WE ALSO TALKED ABOUT THE >> WE ALSO TALKED ABOUT THE STUDENT LOAN PROGRAM, WHICH IS STUDENT LOAN PROGRAM, WHICH IS FEDERALLY SUBSIDIZED AND FEDERALLY SUBSIDIZED AND FEDERALLY INSURED. FEDERALLY INSURED. WHAT CHANGES DO YOU SEE WHAT CHANGES DO YOU SEE OCCURRING IN THAT AS A RESULT OF OCCURRING IN THAT AS A RESULT OF SEQUESTRATION? SEQUESTRATION? >> WHAT WE'RE TOLD AT THIS POINT >> WHAT WE'RE TOLD AT THIS POINT IS THAT IT GOING TO INCREASE THE IS THAT IT GOING TO INCREASE THE STUDENT LOAN ORIGINATION FEES. STUDENT LOAN ORIGINATION FEES. AND IT'S KIND OF HIDDEN IN THE AND IT'S KIND OF HIDDEN IN THE FINE PRINT. FINE PRINT. FOR EXAMPLE ON A STAFFORD LOAN, FOR EXAMPLE ON A STAFFORD LOAN, THE DIRECT LOANS THAT OUR THE DIRECT LOANS THAT OUR STUDENTS RECEIVE RIGHT NOW. STUDENTS RECEIVE RIGHT NOW. THERE'S A 1% ORIGINATION FEE. THERE'S A 1% ORIGINATION FEE. AND THAT ON A $10,000 LOAN IS AND THAT ON A $10,000 LOAN IS $100. $100. OKAY. OKAY. IT'S GOING TO GO TO $1.053 SO IT IT'S GOING TO GO TO $1.053 SO IT WILL BE $105.30. WILL BE $105.30. SO THE ORIGINATION FEE WILL GO SO THE ORIGINATION FEE WILL GO UP $5.30 ON A $10,000 LOAN SO UP $5.30 ON A $10,000 LOAN SO THAT'S A MINIMAL IMPACT ON THE THAT'S A MINIMAL IMPACT ON THE STUDENTS. STUDENTS. >> MINIMAL IMPACT SEEMS TO >> MINIMAL IMPACT SEEMS TO DESCRIBE EVERYTHING THAT'S GOING DESCRIBE EVERYTHING THAT'S GOING ON, AT LEAST AS FAR AS THE ON, AT LEAST AS FAR AS THE FEDERAL BUDGET CUTS GO IN FEDERAL BUDGET CUTS GO IN RELATION TO COLLEGE STUDENTS S RELATION TO COLLEGE STUDENTS S THAT CORRECT? THAT CORRECT? I THINK YOU COULD SAY THAT I THINK YOU COULD SAY THAT CONGRESS REALLY DID A PRETTY CONGRESS REALLY DID A PRETTY GOOD JOB OF TRYING TO PROTECT GOOD JOB OF TRYING TO PROTECT STUDENTS WITH THIS STUDENTS WITH THIS SEQUESTRATION. SEQUESTRATION. >> JOHN NAMATH, DIRECTOR OF >> JOHN NAMATH, DIRECTOR OF FINANCIAL AT AT THE UNIVERSITY FINANCIAL AT AT THE UNIVERSITY OF ARIZONA. OF ARIZONA. >>> TO HEAR THE MEDIA TELL IT, >>> TO HEAR THE MEDIA TELL IT, FISCAL DEVASTATION IS ABOUT TO FISCAL DEVASTATION IS ABOUT TO LAND. LAND. MAYA HUTCHINS, STUDIES WHAT MAYA HUTCHINS, STUDIES WHAT LEADS PEOPLE TO ENGAGE IN LEADS PEOPLE TO ENGAGE IN POLITICAL DISCUSSIONS AND SEEK POLITICAL DISCUSSIONS AND SEEK MEDIA CONTENT AND HOW THOSE MEDIA CONTENT AND HOW THOSE EXPERIENCES INFLUENCE THEIR EXPERIENCES INFLUENCE THEIR POLITICAL KNOWLEDGE AND POLITICAL KNOWLEDGE AND ENGAGEMENT. ENGAGEMENT. WELCOME. WELCOME. >> NICE TO BE HERE. >> NICE TO BE HERE. >> SO IS THIS STORY BEING HYPED? >> SO IS THIS STORY BEING HYPED? >> IT'S BEING HYPED BUT NOT AS >> IT'S BEING HYPED BUT NOT AS MUCH AS SOME OF THE MORE RECENT MUCH AS SOME OF THE MORE RECENT FISCAL DISASTERS, WHICH I WAS FISCAL DISASTERS, WHICH I WAS SURPRISED TO SEE. SURPRISED TO SEE. THERE WAS A LOT OF COVERAGE OF THERE WAS A LOT OF COVERAGE OF THE FISCAL CLIFF AND THE THE FISCAL CLIFF AND THE SEQUESTRATION LAW, WHILE IT'S SEQUESTRATION LAW, WHILE IT'S STILL A BIG DEAL, THERE HASN'T STILL A BIG DEAL, THERE HASN'T BEEN NEAR AS MUCH PANIC. BEEN NEAR AS MUCH PANIC. >> SO HOW HAVE THE GOVERNMENT >> SO HOW HAVE THE GOVERNMENT AND POLITICAL COMMUNICATIONS AND POLITICAL COMMUNICATIONS AFFECTED WHAT THE PUBLIC IS AFFECTED WHAT THE PUBLIC IS PERCEIVING ABOUT THIS? PERCEIVING ABOUT THIS? >> A LOT OF IT DEPENDS ON WHERE >> A LOT OF IT DEPENDS ON WHERE YOU'RE LOOKING. YOU'RE LOOKING. SO WE'RE SEEING SORT OF THE SO WE'RE SEEING SORT OF THE TYPICAL FRAMING FROM HOW YOU TYPICAL FRAMING FROM HOW YOU WOULD EXPECT, FROM THE MORE WOULD EXPECT, FROM THE MORE CONSERVATIVE LEANING MEDIA CONSERVATIVE LEANING MEDIA SOURCES, ARE REALLY PICKING UP SOURCES, ARE REALLY PICKING UP ON WHAT CONGRESSIONAL ON WHAT CONGRESSIONAL REPUBLICANS ARE SAYING. REPUBLICANS ARE SAYING. A STRONG FOCUS ON DEBT AND THE A STRONG FOCUS ON DEBT AND THE NEED TO REDUCE THE DEBT. NEED TO REDUCE THE DEBT. BUT IF YOU'RE LISTENING TO WHAT BUT IF YOU'RE LISTENING TO WHAT THE WHITE HOUSE IS PUTTING OUT THE WHITE HOUSE IS PUTTING OUT AND WHAT CONGRESSIONAL DEMOCRATS AND WHAT CONGRESSIONAL DEMOCRATS ARE SEEING, IT'S MUCH MORE ABOUT ARE SEEING, IT'S MUCH MORE ABOUT JOBS AND HOW THIS IS GOING TO JOBS AND HOW THIS IS GOING TO INFLUENCE OUR RECOVERY. INFLUENCE OUR RECOVERY. >> AND WHAT KIND OF A RECEPTION >> AND WHAT KIND OF A RECEPTION IS THAT GETTING IN THE PUBLIC, IS THAT GETTING IN THE PUBLIC, JUST BASED ON THE EXPERIENCE YOU JUST BASED ON THE EXPERIENCE YOU HAVE HAD WITH OTHER STORIES OF HAVE HAD WITH OTHER STORIES OF THIS NATURE? THIS NATURE? >> IT TENDS TO BE THAT THE >> IT TENDS TO BE THAT THE PUBLIC'S INFLUENCED BY WHAT PUBLIC'S INFLUENCED BY WHAT THEY'RE LISTENING TO. THEY'RE LISTENING TO. SO IF YOU HAVE THE PUBLIC THAT SO IF YOU HAVE THE PUBLIC THAT FOCUSES MORE ON THE REPUBLICAN FOCUSES MORE ON THE REPUBLICAN ANGLE, THEY'RE MUCH MORE ANGLE, THEY'RE MUCH MORE CONCERNED ABOUT THE DEBT. CONCERNED ABOUT THE DEBT. WE NEED TO REDUCE THE DEBT, BUT WE NEED TO REDUCE THE DEBT, BUT THAT IS GOING TO HAVE THIS THAT IS GOING TO HAVE THIS REALLY DEVASTATIVE EFFECT, BUT REALLY DEVASTATIVE EFFECT, BUT PEOPLE WHO LISTEN TO THE PEOPLE WHO LISTEN TO THE DEMOCRAT LEANING MEDIA TEND TO DEMOCRAT LEANING MEDIA TEND TO BE MUCH MORE CONCERNED ABOUT HOW BE MUCH MORE CONCERNED ABOUT HOW THIS IS GOING TO AFFECT JOBS, THIS IS GOING TO AFFECT JOBS, THE ECONOMY AND UNEMPLOYMENT THE ECONOMY AND UNEMPLOYMENT RATES. RATES. >> NOW THE MESSAGES ARE COMING >> NOW THE MESSAGES ARE COMING FROM POLITICIANS AND GOVERNMENT FROM POLITICIANS AND GOVERNMENT OFFICIALS, BUT THE MEDIA ARE THE OFFICIALS, BUT THE MEDIA ARE THE FILTERS. FILTERS. ARE THE MEDIA DOING THEIR JOBS ARE THE MEDIA DOING THEIR JOBS APPROPRIATELY HERE? APPROPRIATELY HERE? ARE WE FILTERING APPROPRIATELY? ARE WE FILTERING APPROPRIATELY? >> WE AREN'T GETTING A LOT OF >> WE AREN'T GETTING A LOT OF FILTER. FILTER. I WOULD SAY THE IDEAL THING FOR I WOULD SAY THE IDEAL THING FOR A MEDIA SOURCE TO DO WOULD BE TO A MEDIA SOURCE TO DO WOULD BE TO LOOK AT BOTH SIDES OF THE LOOK AT BOTH SIDES OF THE ARGUMENT, WHAT ARE THE ARGUMENT, WHAT ARE THE REPUBLICANS SEEING, WHAT ARE THE REPUBLICANS SEEING, WHAT ARE THE DEMOCRATS, WHAT'S THE WHITE DEMOCRATS, WHAT'S THE WHITE HOUSE SAYING, AND THEN CREATING HOUSE SAYING, AND THEN CREATING A COHESIVE ARGUMENT FROM THAT. A COHESIVE ARGUMENT FROM THAT. LETTING THE PUBLIC KNOW WHAT LETTING THE PUBLIC KNOW WHAT REALLY IS GOING TO HAPPEN. REALLY IS GOING TO HAPPEN. HOW BIG OF A RISK IS GOING INTO HOW BIG OF A RISK IS GOING INTO FURTHER DEBT. FURTHER DEBT. HOW BIG OF A RISK OF INCREASING HOW BIG OF A RISK OF INCREASING UNEMPLOYMENTED. UNEMPLOYMENTED. RIGHT NOW IT'S NOT BEING RIGHT NOW IT'S NOT BEING FILTERED, JUST REPEATING. FILTERED, JUST REPEATING. >> CONFLICT IS ONE OF THE THINGS >> CONFLICT IS ONE OF THE THINGS THAT WE THINK ABOUT WHEN YOU THAT WE THINK ABOUT WHEN YOU THINK OF NEWS. THINK OF NEWS. IT'S NOT EXCITING IF EVERYTHING IT'S NOT EXCITING IF EVERYTHING IS JUST, YOU KNOW, SUNSHINE AND IS JUST, YOU KNOW, SUNSHINE AND ROSES. ROSES. BUT THAT ISN'T NECESSARILY THE BUT THAT ISN'T NECESSARILY THE BEST THING FOR THE PUBLIC TO SEE BEST THING FOR THE PUBLIC TO SEE IF WE WANT TO TALK ABOUT FAITH IF WE WANT TO TALK ABOUT FAITH IN MEDIA, FAITH IN GOVERNMENT. IN MEDIA, FAITH IN GOVERNMENT. >> SO YOUR OBVIOUS PERHAPS IS >> SO YOUR OBVIOUS PERHAPS IS THAT THE PUBLIC ISN'T BE SERVED THAT THE PUBLIC ISN'T BE SERVED BY THIS, WHAT DO YOU THINK? BY THIS, WHAT DO YOU THINK? >> I WOULD ARGUE THAT, YES, THE >> I WOULD ARGUE THAT, YES, THE PUBLIC IS NOT BEING SERVED BY PUBLIC IS NOT BEING SERVED BY THIS. THIS. WE THINK IT'S A GOOD IDEA FOR WE THINK IT'S A GOOD IDEA FOR PEOPLE TO HAVE BOTH SIDES OF PEOPLE TO HAVE BOTH SIDES OF INFORMATION. INFORMATION. YOU KNOW, WE'RE GOING TO BE ABLE YOU KNOW, WE'RE GOING TO BE ABLE TO REFINE OUR IDEAS BETTER AND TO REFINE OUR IDEAS BETTER AND WE'RE GOING TO BE ABLE TO KNOW WE'RE GOING TO BE ABLE TO KNOW WHAT WE THINK MORE. WHAT WE THINK MORE. WHEN YOU SEE THESE WHEN YOU SEE THESE DISAGREEMENTS. DISAGREEMENTS. BUT IF WE AREN'T SEEING BUT IF WE AREN'T SEEING COLLABORATION, IF WE AREN'T COLLABORATION, IF WE AREN'T SEEING THAT AT SOME POINT WE'RE SEEING THAT AT SOME POINT WE'RE REACHING THIS RESOLUTION, THAT REACHING THIS RESOLUTION, THAT INSTEAD WE'RE JUST YELLING AT INSTEAD WE'RE JUST YELLING AT EACH OTHER FROM THE SIDELINES, EACH OTHER FROM THE SIDELINES, THAT'S NOT EFFECTIVE. THAT'S NOT EFFECTIVE. >> SO WHAT CHANGES NEED TO BE >> SO WHAT CHANGES NEED TO BE MADE IN HOW THE GOVERNMENT IS MADE IN HOW THE GOVERNMENT IS FRAMING THE MESSAGE AND THEN HOW FRAMING THE MESSAGE AND THEN HOW THE MEDIA IS EITHER INTERPRETING THE MEDIA IS EITHER INTERPRETING THE FRAMING OR FILTERING IT? THE FRAMING OR FILTERING IT? >> A LOT OF IT IS REALLY SORT OF >> A LOT OF IT IS REALLY SORT OF AT THE POLITICIAN LEVEL, WE NEED AT THE POLITICIAN LEVEL, WE NEED TO HAVE MORE COLLABORATION. TO HAVE MORE COLLABORATION. AND SO IT'S A LOT EASIER TO TALK AND SO IT'S A LOT EASIER TO TALK ABOUT COLLABORATION WHEN ABOUT COLLABORATION WHEN COLLABORATION IS ACTUALLY COLLABORATION IS ACTUALLY HAPPENING. HAPPENING. BUT I THINK THAT'S SOMETHING BUT I THINK THAT'S SOMETHING THAT THE MEDIA SHOULD BE TALKING THAT THE MEDIA SHOULD BE TALKING ABOUT MORE. ABOUT MORE. THIS NEED FOR THIS THIS NEED FOR THIS COLLABORATION, THIS NEED FOR COLLABORATION, THIS NEED FOR COMPROMISE INSTEAD OF JUST COMPROMISE INSTEAD OF JUST GETTING YOUR POINT ACROSS. GETTING YOUR POINT ACROSS. AND THINKING THAT YOUR POINT IS AND THINKING THAT YOUR POINT IS THE ONLY ONE THAT'S WORTHY OF THE ONLY ONE THAT'S WORTHY OF BEING LISTENED TO. BEING LISTENED TO. >> AND HOW CAN TO THE MEDIA DO >> AND HOW CAN TO THE MEDIA DO THAT AND STILL AT LEAST MAINTAIN THAT AND STILL AT LEAST MAINTAIN A FACADE, IF YOU WILL OF A FACADE, IF YOU WILL OF OBJECTIVITY? OBJECTIVITY? >> THAT IS A HARDER THING TO DO. >> THAT IS A HARDER THING TO DO. YOU KNOW, SOMETIMES I WOULD YOU KNOW, SOMETIMES I WOULD ARGUE THAT MAYBE THE MEDIA ARGUE THAT MAYBE THE MEDIA DOESN'T NEED TO BE AS OBJECTIVE DOESN'T NEED TO BE AS OBJECTIVE AS IT IS. AS IT IS. WHERE WE'RE GIVING SORT OF EQUAL WHERE WE'RE GIVING SORT OF EQUAL WEIGHT TO BOTH SIDES OF AN WEIGHT TO BOTH SIDES OF AN ISSUE, YOU KNOW, SOMETIMES EQUAL ISSUE, YOU KNOW, SOMETIMES EQUAL WEIGHT ISN'T ALWAYS APPROPRIATE. WEIGHT ISN'T ALWAYS APPROPRIATE. AND IT'S THE MEDIA'S JOB TO AND IT'S THE MEDIA'S JOB TO INTERPRET AS WELL. INTERPRET AS WELL. INSTEAD OF JUST TELLING US INSTEAD OF JUST TELLING US WHAT'S OUT THERE. WHAT'S OUT THERE. >> NOW OVER THE YEARS, AND >> NOW OVER THE YEARS, AND PERHAPS OVER THE CENTURIES IN PERHAPS OVER THE CENTURIES IN THE AMERICAN DEMOCRACY, THERE'S THE AMERICAN DEMOCRACY, THERE'S BEEN A MISTRUST, A HEALTHY BEEN A MISTRUST, A HEALTHY MISTRUST FOR THE MOST PART OF MISTRUST FOR THE MOST PART OF INSTITUTIONS, GOVERNMENT, INSTITUTIONS, GOVERNMENT, POLITICS, THE MEDIA. POLITICS, THE MEDIA. IS THIS ADDING TO THAT MISTRUST IS THIS ADDING TO THAT MISTRUST BEYOND A HEALTHY REALM? BEYOND A HEALTHY REALM? >> ABSOLUTELY. >> ABSOLUTELY. IF YOU LOOK AT SORT OF FAITH IN IF YOU LOOK AT SORT OF FAITH IN CONGRESS, FAITH IN INSTITUTIONS, CONGRESS, FAITH IN INSTITUTIONS, IT'S AT ONE OF THE LOWEST LEVELS IT'S AT ONE OF THE LOWEST LEVELS THAT IT'S BEEN IN A WHILE. THAT IT'S BEEN IN A WHILE. A REALLY GOOD BOOK CAME OUT LAST A REALLY GOOD BOOK CAME OUT LAST YEAR BY UNANIMOUS OR ENSTEIN WH YEAR BY UNANIMOUS OR ENSTEIN WH TALKED ABOUT CONGRESS AND THE TALKED ABOUT CONGRESS AND THE MEDIA AND GOVERNMENT. MEDIA AND GOVERNMENT. AND IT'S INCREASING OR STAYING AND IT'S INCREASING OR STAYING THE SAME. THE SAME. >> MAYA HUTCHISON. >> MAYA HUTCHISON. >> MORE INFORMATION ABOUT THE >> MORE INFORMATION ABOUT THE BUDGET CUTS IS ON OUR WEBSITE BUDGET CUTS IS ON OUR WEBSITE APM.ORG. APM.ORG. THAT IS OUR PROGRAM FOR FRIDAY THAT IS OUR PROGRAM FOR FRIDAY MARCH 1, 2013. MARCH 1, 2013. NEXT FRIDAY WE'LL BRING YOU AN NEXT FRIDAY WE'LL BRING YOU AN IN DEPTH REPORT FROM THE ANNUAL IN DEPTH REPORT FROM THE ANNUAL WATER CONFERENCE IN TUCSON. WATER CONFERENCE IN TUCSON. FOR "ARIZONA WEEKLY" I'M MICHAEL FOR "ARIZONA WEEKLY" I'M MICHAEL CHIHAD.