ZAC SCHULTZ:

GOVERNOR WALKER, THANK YOU FOR JOINING US.

SCOTT WALKER:

THANKS FOR HAVING US.

ZAC SCHULTZ:

WE’LL LOOK AHEAD TO THE NEW YEAR BUT FIRST THERE’S A COUPLE TOPICS FROM 2015 WE WANT TO TALK ABOUT. FIRST, WHAT DID YOU LEARN FROM YOUR EXPERIENCE ON THE PRESIDENTIAL CAMPAIGN TRAIL?

SCOTT WALKER:

COUPLE DIFFERNT THINGS. PROBABLY THE MOST INTERESTING IS JUST HOW SIMILAR PEOPLE ARE ACROSS AMERICA. OBVIOUSLY OUR NEIGHBORS IN IOWA WOULD BE A GIVEN, BUT NEW HAMPSHIRE, SOUTH CAROLINA. ACTIONS MIGHT BE A LITTLE DIFFERENT, CHEER FOR DIFFERENT SPORTS TEAMS, BUT SIMILAR CONCERNS. PEOPLE WANT THEIR KIDS TO DO BETTER THAN THEY DID. THEY HOPE AFTER THAT THEY GO AWAY TO SCHOOL WHEREVER IT’S AT, THEY COME BACK AND SETTLE NEAR THEIR HOMES, NEAR THEIR FAMILIES. CONCERNED ABOUT CONTROLLING THEIR OWN HEALTH CARE. CONCERNED ABOUT ISIS AND OTHER THREATS FROM RADICAL ISLAMIC TERRORISM. THOSE ARE PRETTY COMMON ACROSS AMERICA. THEY’RE CERTAINLY THINGS I CONTINUE TO HEAR HERE IN WISCONSIN.

ZAC SCHULTZ:

AFTER YOUR CAMPAIGN ENDED YOU CAME HOME TO SOME OF THE LOWEST APPROVAL RATINGS YOU’VE SEEN AS GOVERNOR. DO YOU FEEL THAT’S IMPACTED YOUR ABILITY TO LEAD AS GOVERNOR?

SCOTT WALKER:

NO. AS YOU REMEMBER, SPRING OF 2011, MY RATINGS WERE SO LOW, I THINK TIME MAGAZINE CALLED ME “DEAD MAN WALKER.” WE CAME BACK THE NEXT JUNE AND WE ACTUALLY WON A RECALL ELECTION WITH MORE VOTES AND A HIGHER PERCENTAGE OF THE VOTE THAN WE DID BEFORE. WE REALLY GOT TO FOCUS IN ON TWO THINGS. ONE, GETTING THE JOB DONE, CONTINUE DOING THE WORK WE WERE ELECTED TO DO BACK IN NOVEMBER OF 2014. AND THE OTHER THING WE’RE GOING TO SPEND A LOT OF TIME ON THROUGHOUT THIS YEAR, THROUGHOUT 2016 FOCUSING IN ON IS REALLY SPENDING TIME LISTENING FROM BIG CITIES TO SMALL TOWNS AND EVERYWHERE IN BETWEEN. CRISSCROSSING THE STATE, LISTENING TO PEOPLE, HEARING ABOUT THEIR HOPES AND THEIR CONCERNS, NOT JUST FOR TODAY OR TOMORROW, BUT REALLY LOOKING OUT 20 YEARS, KIND OF STRATEGIC PLANNING, BUILDING SOME OF OUR SHARED VALUES IN THIS STATE. AND I THINK THE MORE TIME WE DO, THAT THE MORE TIME WE LISTEN. AND THEN AFTER THAT, THE MORE TIME WE IMPLEMENT THAT, THE THINGS PEOPLE SAY THEY WANT FOR THE FUTURE, THE BETTER OFF WE’RE GOING TO BE.

ZAC SCHULTZ:

THIS WEEK YOU’VE ASKED WISCONSIN’S ATTORNEY GENERAL TO LOOK AT PRESIDENT OBAMA’S UPCOMING EXECUTIVE ORDERS ON GUN CONTROL. IS IT A SECOND AMENDMENT ISSUE THAT CONCERNS YOU MORE OR WHAT YOU’RE CALLING A PRESIDENTIAL OVERREACH?

SCOTT WALKER:

IT’S OVERREACH. AS YOU KNOW I WAS ONE OF 25 GOVERNORS THAT CHALLENGED THE PRESIDENT WHEN IT CAME TO HIS IMMIGRATION EXECUTIVE ACTION SAYING HE OVERREACH THERE. THE COURTS HAVE AGREED WITH US. THEY’VE STAYED THAT ACTION. IT’S NOW IN THE FEDERAL APPELLATE COURT PROCESS. THEY’VE SIDED WITH ME AND THE OTHER GOVERNOR. AS HE SAID HIMSELF WITH THAT ACTION, HE SAID ABOUT TWO DOZEN TIMES HE COULDN’T DO IT. HE WASN’T ABOVE THE LAW. HE WASN’T THE EMPEROR. AND YET HE WENT AHEAD AND DID IT. IN THIS CASE, SAME SORT OF ARGUMENT. THAT I THINK PEOPLE IN THIS STATE WOULD RIGHTFULLY BE UPSET WHETHER THEY WERE A SUPPORTER OR OPPONENT OF MINE THAT I COULDN’T JUST SAY TO THE LEGISLATURE I DON’T LIKE THE FACT THEY’RE TAKING TOO LONG ON THIS, I’M GOING TO PASS SOMETHING ON MY OWN THROUGH EXECUTIVE ACTION. AND THAT’S ESSENTIAL WHAT I THINK ATS FAULT. THERE ARE THINGS WE NEED TO DO IN THIS COUNTRY TO ADDRESS PUBLIC SAFETY ISSUES, THIS BEING ONE OF THOSE, BUT YOU CAN’T DO IT THROUGH AN EXECUTIVE ACTION.

ZAC SCHULTZ:

YOU MENTIONED THE LEGISLATURE. IS THERE ANYTHING IN THE UPCOMING SPRING SESSION YOU’D LIKE TO SEE THEM PASS BEFORE THEY CALLED IT A YEAR?

SCOTT WALKER:

THERE’S A SERIES OF THINGS. WE’RE GOING TO LAY OUT IN THE STATE OF THE STATE SOME THINGS SPECIFIC TO WORK FORCE DEVELOPMENT, CAREER DEVELOPMENT. SOME RESOURCES WE’D LOVE TO PLUG INTO OUR SCHOOLS AND TECHNICAL COLLEGES. WE’RE LOOKING AT WAYS TO HELP RELIEVE SOME OF THE BURDEN THAT PEOPLE HAVE IN TERMS OF STUDENT LOAN DEBT, PARTICULARLY FOR THOSE WHO BUILT UP THAT DEBT BEFORE WE PUT IN A FOUR-YEAR TUITION FREEZE IN THE UW SYSTEM OR FOR THOSE WHO MAYBE WENT TO A PRIVATE INSTITUTION OR INSTITUTION OUTSIDE OF THE STATE. THERE’S A SERIES OF OTHER THINGS LIKE THAT. WE LOOK TO WORK HAND IN HAND WITH LAWMAKERS. A LOT OF THESE THINGS ARE THINGS WE THINK CAN GET PASSED ON A BIPARTISAN BASIS.

ZAC SCHULTZ:

ONE OF THE THINGS THAT’S COMING UP QUICKLY IS THE CHANGES TO THE CIVIL SERVICE SYSTEM. THAT WAS ORIGINALLY IMPLEMENTED IN 1905 WITH THE SLOGAN “THE BEST SHALL SERVE THE STATE.” DO YOU THINK THAT’S NO LONGER THE CASE?

SCOTT WALKER:

WELL I THINK IF YOU LOOK AT THE 21ST CENTURY LIKE ANYTHING, YOU LOOK AT BUSINESSES AND HOW THEY’VE CHANGED OVER TIME. YOU LOOK AT ORGANIZATIONS, CHURCHES, SYNAGOGUES, OTHERS, THEY’VE ALL MADE CHANGES OVER THAT PERIOD OF TIME. WHAT WE WANT TO DO IS MAKE SURE WE CAN RECRUIT AND RETAIN THE VERY BEST IN STATE GOVERNMENT. SO PART IS HAVING A RECRUITMENT AND RETENTION PROGRAM THAT ALLOWS US TO DO THAT. IT STILL – I MEAN LET’S BE CLEAR – IT STILL EVEN WITH THE CHANGES WE’RE PROPOSING WORKING WITH THE LEGISLATURE ON, IT STILL WOULD REQUIRE MERIT HIRING FOR THE VAST MAJORITY OF THESE POSITIONS OTHER THAN THE ONES THAT ARE ALREADY CURRENTLY AT-WILL APPOINTED POSITIONS. BUT FOR ALL THE OTHERS IT REQUIRES MERIT HIRING AND IT WOULD REQUIRE A CLEAR JUST CAUSE PROCESS SO THAT SOMEONE IS FIRED, THERE’S JUST CAUSE FOR IT. THERE’S A REASON FOR IT, BUT IT’S ONE THAT’S BASED ON COMMON SENSE, NOT BASED A BUREAUCRATIC RED TAPE.

ZAC SCHULTZ:

ONE OF THE OTHER BIG THINGS THE STATE IS LOOKING AT CHANGING IS HOW THEY GIVE HEALTH INSURANCE TO STATE EMPLOYEES. COUPLE DIFFERENT REPORTS, WILDLY VARYING ESTIMATES, FROM SAVING THE STATE $40 MILLION A YEAR TO MAYBE COSTING $100 MILLION A YEAR. AND THEN THERE’S POTENTIAL OF DISRUPTION TO THE ACTUAL ECONOMY AND THE HEALTH CARE. HOW DO YOU WEIGH ALL THAT WHEN YOU DECIDE WHERE WE SHOULD GO ON THAT?

SCOTT WALKER:

WE’RE GOING TO HAVE TO SPEND A LOT OF TIME BETWEEN NOW AND – EARLIEST ANY OF THIS WOULD BE PART OF THE DISCUSSION IS IN THE NEXT BUDGET A YEAR FROM NOW. BUT LOOKING AT IF YOU’RE GOING TO MAKE A CHANGE LIKE THIS — AND MANY JURISDICTIONS, NOT JUST STATES, BUT LOCAL GOVERNMENTS, COUNTIES, SCHOOL BOARDS, OTHERS HAVE LOOKED AT THINGS LIKE THIS, INCLUDING SOME IN THIS STATE, MANY OF WHICH HAVE BEEN VERY SUCCESSFUL. THERE’S SOMETHING LIKE 20 STATES IN THE COUNTRY THAT HAVE DONE THIS INCLUDING OUR NEIGHBOR. MINNESOTA DID IT SUCCESSFULLY ABOUT A DECADE AGO. THOSE KIND OF GIVE MERIT TO THE ARGUMENT THAT THIS COULD BE A GOOD THING, IT COULD SAVE US MONEY. BUT WE NEED TO LOOK UNIQUELY AT WHAT THE IMPACT IS HERE IN WISCONSIN. AND MAKE SURE THAT IF THERE IS AN EXPECTATION OF SAVINGS, THAT THOSE WILL BE MATERIALIZED. MY BELIEF IS WHETHER IT’S THIS OR ANYTHING ELSE, EVEN IN OTHER AREAS, IF WE’RE GOING TO DO REFORMS IN STATE GOVERNMENT, I THINK PEOPLE APPRECIATE THAT WE’VE REFORMED GOVERNMENT BEFORE. THAT WE’VE BALANCED THE BUDGET. WE’VE GOTTEN OUR FISCAL HOUSE IN ORDER. OUR PENSION IS ONE OF TWO IN THE COUNTRY FULLY FUNDED. OUR RAINY DAY FUND IS 165 TIMES BETTER THAN WHEN WE TOOK OFFICE. OUR DEBT LEVELS – OVERALL DEBT – WHEN YOU LOOK AT BONDING, OPEB, PENSIONS IS LITERALLY ONE OF THE BEST, ONE OF THE LOWEST IN THE COUNTRY. IN FACT, BONDING THIS LAST BUDGET WAS THE LOWEST IN 20 YEARS. THE PEOPLE HAVE SAID OK NOW YOU REFORMED THINGS, YOU GOT YOUR FISCAL HOUSE IN ORDER, LET’S TAKE THOSE SAVINGS AND LET’S PLUG THEM INTO THINGS LIKE INVESTING IN OUR PUBLIC EDUCATION SYSTEM, NOT JUST WITH A BLANK CHECK, BUT DOING SO IN A WAY THAT SAYS WE WANT OUR YOUNG PEOPLE TO BE CAREER-READY. WE WANT TO BE RELEVANT FOR THE 21ST CENTURY. LET’S FIGURE OUT NEW WAYS WE CAN PARTNER WITH SCHOOL BOARDS ACROSS THE STATE TO DO THAT.

ZAC SCHULTZ:

ONE PLACE THAT THERE MAY BE SOME CHANGES IS THE WISCONSIN ECONOMIC DEVELOPMENT CORPORATION. THE JOURNAL SENTINEL EDITORIALIZED QUOTE WEDC DOESN’T NEED REBRANDING. IT NEEDS AN OVERHAUL. DO YOU AGREE WITH THAT OR WHAT CHANGES DO YOU THINK NEED TO BE MADE THERE?

SCOTT WALKER:

WELL A COUPLE THINGS. ONE, PART OF THE DEBATE HAS TO BE DO YOU WANT THE OLD DEPARTMENT OF COMMERCE THAT DID LOANS? WISCONSIN ECONOMIC DEVELOPMENT CORPORATION DID LOANS. THAT PARTICULAR EDITORIAL WAS SUGGESTING THEY LARGELY GET OUT OF THE LOAN BUSINESS. THAT’S FINE. BUT THEN WHEN THE JOURNAL SENTINEL DOES A STORY ABOUT ECONOMIC DEVELOPMENT CORPORATION NOT STEPPING UP TO HELP XYZ CORPORATION THAT WANTS TO BRING 1,000 JOBS TO THE AREA, THEY GOTTA LOOK AT THE SCENARIO. I THINK THAT MIGHT BE A VALID ARGUMENT. TO ME I THINK THERE IS SOME MERIT IN SAYING MAYBE THE FOCUS SHOULD BE ON PUSHING THOSE DOLLARS MORE TO THE LOCAL LEVEL, TO REGIONAL, COUNTY LEVELS AND FIGURING OUT A WAY TO LET THEM MAKE INVESTMENTS IN START-UPS AND NEW BUSINESSES AND LET OTHERS GO DOWN THEIR ROUTE. BUT THAT’S THE SYSTEM THAT WAS IN PLACE LONG BEFORE I CAME IN, UNDER THE OLD DEPARTMENT OF COMMERCE. THAT’S THE SYSTEM IN PLACE WITH THE ECONOMIC DEVELOPMENT CORPORATION TODAY. I THINK ONE OF THE BEST THINGS WE’VE DONE REFORM-WISE IS ASKED MARK HOGAN TO COME IN. HE’S DONE A TREMENDOUS JOB OF LINING THINGS UP, WORKING WITH DAN ARIENS THE BOARD CHAIR THERE. AND IF YOU TALK TO PEOPLE — AND I WOULD INVITE ANYBODY IN THE MEDIA OR ANYBODY ELSE, FOR THAT MATTER, TO GO OUT AND TALK TO MUNICIPAL, COUNTY AND REGIONAL ECONOMIC DEVELOPMENT LEADERS OUT THERE. BECAUSE WHAT I HEAR TIME AND TIME AGAIN AS WE CRISSCROSS THE STATE IS THEY SAY YOUR WEDC STAFF, THE FRONT LINE STAFF, IS DOING A TREMENDOUS JOB. THE ONE OR TWO STORIES THAT WE’VE HEARD OUT OF THE LAST FOUR OR FIVE YEARS, YEAH, THERE HAVE BEEN SOME PROBLEMS THERE. BUT THAT’S ONE OR TWO INSTANCES. THE FRONT LINE STAFF’S BEEN DOING A GREAT JOB. WE WANT TO MAKE SURE WHATEVER CHANGES ARE MADE, WE’RE WILLING TO WORK WITH DEMOCRATS, REPUBLICANS ALIKE, BUT LET’S MAKE SURE WE DON’T DAMAGE THE GOOD WORK THAT THEY’RE DOING WHILE WE CORRECT SOME OF THE OTHER THINGS.

ZAC SCHULTZ:

THERE’S A RECENT REPORT THAT SAID THERE WERE MORE THAN 10,000 MASS LAYOFF NOTICES ISSUED IN 2015, THE MOST IN YOUR TERM. WHAT DO YOU SAY TO THOSE PEOPLE RECEIVING THOSE LAYOFF NOTICES?

SCOTT WALKER:

WELL A COUPLE THINGS. ONE, NOTICES ARE JUST THAT. IT’S NOW BELOW THAT NUMBER BECAUSE A NUMBER OF THOSE COMPANIES WHO INITIALLY THOUGHT THEY MIGHT HAVE TO HAVE PULLED BACK ON THAT. OTHERS — IN FACT, IN THE CASE OF OSCAR MAYER HERE IN MADISON, SOME OF THOSE WON’T EVEN HAPPEN IF AT ALL UNTIL NEXT YEAR. BUT I SAID WE’RE WORKING ON IF NOT JUST WORKING WITH THEIR PARTICULAR BUSINESS, WE’RE WORKING WITH MAKING SURE THAT MORE PEOPLE ARE WORKING IN THE STATE OVERALL. I WOULD TELL PEOPLE DON’T JUST LOOK AT THE HEADLINES OUT THERE. LOOK AT THE ACTUAL DATA. LOWEST UNEMPLOYMENT RATE IN 14.5 YEARS. ONE OF THE HIGHEST RATES IN WHICH PEOPLE ARE WORKING, 67.8%. THAT’S TWO-THIRDS OF THE PEOPLE IN THE STATE ARE IN THE WORKFORCE RIGHT NOW. THAT’S LITERALLY IN THE TOP TEN HIGHEST IN THE COUNTRY. AND LAST YEAR, ACCORDING TO TWO OF THE STATISTICS, THE FEDERAL DEPARTMENT OF LABOR TRACKS, YOU LOOK AT THOSE TWO DATA POINTS AND YOU’LL SEE OVER THE LAST 20 YEARS THE HIGHEST NUMBER OF PEOPLE WORKING IN THE STATE WAS IN 2015. SO MORE PEOPLE ARE WORKING LARGELY THAN JUST ABOUT ANYTIME IN OUR STATE’S HISTORY. UNEMPLOYMENT IS DOWN. WHAT WE HAVE TO DO IS CONNECT THE DOTS TO MAKE SURE PEOPLE HAVE THE SKILLS AND QUALIFICATIONS AND EDUCATION THEY NEED TO SUCCEED NOT JUST IN GETTING JOBS, BUT IN CAREERS THAT SUPPORT THEM AND THEIR FAMILIES.

ZAC SCHULTZ:

GOT A BIG ELECTION COMING UP THIS SPRING, HOW INVOLVED WILL YOU BE IN THE REPUBLICAN PRESIDENTIAL PRIMARY?

SCOTT WALKER:

I THINK FOR ME, MY FOCUS IS REALLY LIKE I SAID, SPENDING THE TIME IN 2016 GOING AROUND THE STATE, LISTENING, TALKING ABOUT OUR LONG-TERM PLANS AND HOPES. RIGHT NOW I HAVE A HARD TIME EVEN TELLING YOU WHO I’D VOTE FOR IN THAT APRIL PRIMARY. SO SOMETHING MIGHT CHANGE BETWEEN NOW AND THEN, BUT RIGHT NOW I’M LESS INTERESTED IN THAT ELECTION AND MORE FOCUSED ON CRISSCROSSING WISCONSIN, NOT THE COUNTRY IN 2016, TO REALLY LISTEN TO PEOPLE AND THEN PUT THOSE PLANS IN ACTION. AND THEN IF THERE’S ANY FUTURE ELECTIONS, IT MIGHT BE FOR REELECTION IN 2018, WE CAN BE JUDGED AT THAT POINT BASED ON HOW WELL DID WE LISTEN THIS YEAR. AND THEN HOW WELL DID WE IMPLEMENT THOSE CONCERNS AND HOPES IN THE YEARS THAT FOLLOWED.

ZAC SCHULTZ:

SO WE ONLY HAVE A COUPLE SECONDS LEFT BUT I HEARD 2018. THAT DOOR IS STILL OPEN FOR YOU?

SCOTT WALKER:

ABSOLUTELY. I MEAN IT’S ONE OF THOSE WHERE I SEE THE HIGHEST LEVEL OF PEOPLE WORKING AND HIGHEST ACTUAL NUMBER OF PEOPLE WORKING IN THE LAST 20 YEARS, AT LEAST ACCORDING TO THOSE TWO DATA POINTS OUT THERE. I’VE SEEN AN ECONOMY THAT’S GROWING, BUT I SEE A WHOLE LOT MORE WORK TO BE DONE. OUR SCHOOLS HAVE THE SECOND BEST ACT SCORES IN THE COUNTRY. GRADUATION RATES ARE UP AGAIN. WE HAVE THE THIRD HIGHEST GRADUATION RATE IN THE COUNTRY. FOURTH IN 8TH GRADE READING SCORES ARE UP. OUR FINANCES ARE IN ORDER. BUT THERE’S SO MUCH MORE WE CAN DO GOING FORWARD. WHEN I THINK ABOUT NOT TWOR OR FOUR OR EIGHT YEARS BUT WHEN I THINK ABOUT 20 YEARS IN THE FUTURE, WHEN MY KIDS MAYBE HAVE KIDS OF THEIR OWN, MY NIECES ARE GOING INTO THE WORK FORCE, I WANT TO MAKE SURE FOR THEM AND ALL OTHERS IN THEIR GENERATION THAT THEY HAVE A STATE THEY CAN BE PROUD TO LIVE IN AND THEY WANT TO CONTINUE TO BE IN.

ZAC SCHULTZ:

GOVERNOR WALKER, THANK YOU FOR YOUR TIME TODAY.

SCOTT WALKER:

THANK YOU.