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Gov. Jack Markell, (D-Del.), on how Governors are dealing with concerns about the potential fiscal cliff.
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Okay now and then we don't mean to annoy you about this but it it it could cause little bit of Havoc in the markets although we don't know but just 34 days left for congress to reach a budget deal.
Otherwise as you know more than 600 billion dollars in tax hikes and spending cuts kick in.
Some states are not waiting around and they want to tackle the hard issues right now -- all week long we decided to talk to state leaders finding out what they're doing in this period of tremendous uncertainty.
It's part two of our governors on the edge series is were calling it joining us now in a Fox Business exclusive.
Is Delaware governor Jack mark -- Democrats.
A Delaware great to have you here sir thank you for joining us and and -- you know what yesterday we had to Pennsylvania governor Tom Corbett.
And he was saying Liz we almost have to prepare to separate budgets one if we go off the cliff.
And what if we don't is that when you guys are doing in Delaware how are you handling it.
Well we're preparing but it's a little difficult to know exactly how to prepare because we don't have the details yet of where the -- going to be cut so.
You see you said any opening that states are prepared to do tough things I think the truth is most states have been having to make tough decisions over the last few years.
If in fact we see a significant reduction in funding from the federal government.
It could have a big impact on states and the message to the agency -- -- state agencies is.
There's not going to be enough state money to make up the difference.
Would you have some success because you filled an 800 million dollar budget shortfall you fix about how to do it because that's not an easy thing to do and of course it's on.
A much smaller scale than what did the US government has to do with sixteen trillion deficit hole but how did you do it.
It was painful and we had to first degree and some.
Key principles that we are going to follow one we wanted to continue to invest in things that would lead to a prosperous future like education.
And jobs we -- to to.
Protect those who -- most vulnerable.
We wanted to be financially responsibly got a triple a -- credit rating and then bond rating in Delaware from all three aviation teaser rates State's bonds excellent so we ended up having to do a number of things we had to make a lot of cuts.
We've had ever everything we're we're actually down and state employment for the first time in in decades.
We've had two do a hundred different things in terms of looking for opportunities to cut.
But I think that's that's gonna continue to be true for some period of time now we we also had to raise some additional revenues a few years ago.
I want people to know little bit about you why you did come from the private sector you were in I love this employee number thirteen net Nextel so.
-- have to run a business with no help from the government that you got your NDA.
You know what you're doing in that regard that you turn to the prop the public sector and you know now you're also chairman of the National Governors Association.
What are these governors saying to you what are you hearing from them how concerned are they about the fiscal cliff.
The governors are highly concerned for sure and for and for good reason.
But they're also not sitting back I think most of us understand that the only way out for any of our economies is to grow.
Our way out we have to be relentlessly focused on continuing to improve the economic climate in our states listening to businesses taking their lead.
Focusing on the things that make the biggest difference to them.
I know governors -- has attempted offered you -- way if you have the president's -- what advice would you give them of course are not asking you to give advice but.
One -- the sticking points could very well be this point of 250000.
Or more so raising taxes on those who make 250000 or more.
You having lived in the business world to know what that really means for family -- four.
Would you if you were in charge bring that up to maybe 500000 what Warren Buffett said in an op Ed in the New York Times yesterday or maybe even 750 -- -- million.
Before you allow the bush tax cuts to expire.
-- I haven't given that a lot of thoughtful what I have thought a lot about is what the impact could be on stage from the federal cuts I think one of the important things that we want to make sure.
That people in Washington understand.
Is that if all that's done is a cost shifting.
From the federal government to the states that really doesn't accomplish very much because states -- in a position.
But to pick up the extra cost so will be weighing in were really grateful the Obama administration's been terrific about reaching out to governors we had a call last week with vice president.
Biden.
And we look forward to continuing to make sure that our voices heard.
But as you say in the meantime you're not waiting -- -- -- private sector business to let your state you've got JPMorgan Chase Capital One a bunch of others coming to Delaware to at least opened offices up twenty million.
With the hopes that it would create jobs went to -- her.
No jobs really created -- where does that stand governor.
Fits your city the point right now they obviously they they -- Expected to draw down over 300 billion dollars more from the federal Department of Energy.
That money was not forthcoming.
Last year -- -- at a point right now where they're trying to find.
The funding to actually build out the plant in Delaware so there is some.
Uncertainty there they continue to -- -- to win a number of terrific awards.
From around the country and and beyond it's a beautiful car it's a very fuel efficient car.
-- -- still some work to do primarily on the funding side they've got a strong new management team in place which is really important as.
Well well we'll watch for job creation your unemployment rate is lower than the national average and that's certainly worth applause thank you governor and keep us posted as things develop.
Thank you.
Delaware governor Jack -- -- -- --
