To being the leader of the world again. James and spring valley, new york. Mechanicsburg, pennsylvania. A supporter of President Trump. This is greg. Ceo of theident and center for american progress. Want to welcome you to this conversation. For we get started, i want to do a quick piece of housekeeping. Ate captioning is available. Merican progress. Org we have a tremendous conversation. Governor gavin newsom. I will get into introductions ater but i want to provides context. On the Democratic National convention, it is only fitting that we take time to discuss how we can correct course. The Trump Administrations response to the pandemic, to black lives matter, and their dangerous and reckless suppression 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 backward. Dangerously backward. That is why this conversation is so important. We want to make sure that we are moving forward. What is critical to this conversation is learning from the great work that has happened at the state level. We dont want to reinvent the wheel. On a state and local level, many administrations have paved the way for progressive values and innovative policies that have shaped Vice President bidens presence on the political stage. The leader in this is california when it comes to paid family leave and 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. Californias Unemployment Rate over 3nd its gdp is trillion. Its one of the largest economies in the world. Is the philosophy of investing in people to drive Economic Growth. That has been at the forefront of Governor Newsoms agenda and his success. We are thrilled to have Governor Newsom kick off this conversation with us. We will have a Group Discussion then go to our panel afterwards. Just starti will asking you questions. [laughter] first, i would like to talk about the coronavirus. Someornia has had challenges, but it is 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, 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. It is a question that governors ask among themselves almost daily. If there is a byproduct of a lack of National Leadership as it relates to resolve on testing broader strategies on Contact Tracing and the light, it is 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. Our weekly call with eric chiefs of staff of all the western states. They are engaging beyond just this issue. There is a byproduct of optimism. The spirit of your introduction is a spirit that enlightens me. If you dont like the way the world looks when youre standing up, stand on your head and go local. This of the metros across country. There are still remarkable things happening at the local level. We are proud of this state. Average repent 3. 8 gdp growth over five years. Off over 30 billion of debt. We were able to put aside the highest reserves in the states history. We use part of our surplus last year to start paying down pension obligations. I dont know of another state that has reserves to pay down those obligations. All of that changed. In january, we had another budget surplus. A few months later, we had a 54. 3ce and we just did of doubt 54. 3 billion shortfall related to covid. Covid has does devastated the economy of this state. We were the first ones to do a statewide stayathome order. We didnt have the peaks of other states. We were able to extend the curve out. We modified the stayathome order. People reverted back to their original form. While we had protocols and processes and requirements, we didnt necessarily see that adopted as we had hoped for. As a consequence, we learned a valuable lesson. We had to go back into a modified stayathome again and we have never broken a percent positivity. We have never broken 8 positivity. About 6. 6 on the 14 day right now. We are moving in the right direction right now. We are going to modify this time with an understanding of Human Behavior that is what we all have to want to go back to the way things were and be much more judicious, much more thoughtful. I will close with this. California is a self starting state. There is an entrepreneurialism. Rather than pointing fingers and talking about who is to blame, our mantra has been we have to figure out what to do. We purchased billions of dollars of ppe from overseas. We sent 17 Million Masks to four other states because our state was able to procure more masks. We still have almost 300 million in our stockpile. We have been able to figure out our testing. We are averaging over hundreds of thousands of tests per day. It is the spirit of responsibility, the need or ourselves which is clearly something we look forward to resolving itself when joe biden is sworn in next january. Emphasize the californiarate in has definitely been much lower than other states that are seeing real surges. Also, every state is dealing with the fact that there has been mixed messaging at the federal level. Safety protocols like masks. That is a challenge every state has had to deal with. I also wanted to ask you going forward, as we come out of the pandemic, 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 you are solving that problem . If the lack that you are the lack of support youre getting. Gov. Newsom the experience of california, we were able because of the good economic ties 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 and put things together, a lot of onetime solutions to get through these extraordinary shortfalls. To beear, its going profoundly challenging for cities and states. That is why this new stimulus, this new cares act is so foundational, so fundamental. Not to bailout states that have been managing their state effectively. It is about social responsibility in what is the United States. The purpose of the federal government to provide for that in a way that can soften the edges to instill a sense of wellbeing and that 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. That is front and center to everything we do. Talk in terms of growth and inclusion. That is our mindset. As a nation, we have forgotten the second part of the equation, growth and inclusion. I am here in california in the most diverse state in the worlds most diverse democracy. California is a majority minority state. 40 latino. 27 foreignborn. If theres anything i want to express, 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. Xenophobia, negativism, one side against another. We got rid of affirmative action in 1995. Prop 187 is intimacy here in california with a governor running for reelection who was going to announce shortly thereafter and did his own desire to be president of the United States. That alsod a moment marked this moment in california. The politics have radically shifted in this state. It is no longer part of the conversation as it relates to republican president ial aspirations. It marked that moment and i really believe this. In thee Republican Party state of california has a third party status. It is a cautionary tale for the national Republican Party. It should sober every republican in this nation. They are walking off the exact same cliff that they walked off in the state of california. Not to be patronizing or even political, objectively, there are real lessons and considerations and caution flags that should be considered as we look forward to next weeks republican convention. About 1994 and 2016, they did win an election but then they lost for a while. To follow on that and to emphasize what you were talking has been ae discourse among conservatives that there is a real tradeoff. The best way to get Economic Growth is not to invest in people, it is to cut social services and cut spending. Part of what is 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. You have invested in climate response. That is not hurting growth, it is increasing growth. Essentialso an conversation were going to have over the next several months. The experience in california is so central to this because as you have invested, its not that california has declined. It is it has led the country in Economic Growth. I would 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, it is going handinhand with growth. Gov. Newsom that reminds me of something called a wonderful book called built to last. I recommend it for everybody. Called thechapter tierney of war. Our capacity to grow our economy was not done at the expense of the environment. The reason california enjoyed 3. 8 average gdp growth outperforming the National Economy is because not despite our aggressive policy. Progressive policy. We were able to create policy that created accelerants in terms of investment in the green space. We are in the process of radically changing the way we produce and consume energy and it stretched our system in the last week where we have had this world record heat. 130 degrees in palm springs. We have three head 76 fires because of lightning strikes. We have 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 the forefront of our policymaking. More Clean Energy Jobs than fossil fuel jobs. In venturee folks capital, more investors in the space. There is anxiety at the moment. We all have anxiety related to cobit and everything on your screen every afternoon. We all have anxiety related to covid. There is Something Dynamic about this economy. It is absolutely because of progressives balls and policy. Progressive about policy. We have the lowest population of inmates in california. Aggressive in terms of cash we are going to shut down two prisons. We are reforming a number of prisons and cohoarding people in an energetic effort to reimagine rehabilitation in the state. The income we have 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. We are investing in zero to three not just preschool. We are beginning to develop longterm strategies across the spectrum in terms of addressing achievement gaps which are readiness gaps. We have a different mindset, a different approach. Situationally, we are 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. You talk about climate. I want to drill down a little bit on that. In some ways, you are facing california faces the most dire impact from Climate Change. We just talked about the fires that have been ongoing. Now, annualized events. Hand, you are leading your country not just operating as a state, internationally as a state across borders to address climate. That is innovative thinking. That 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. I think your examples have really informed the joe biden strategy of how to invest to address our climate challenges as a country. Gov. Newsom its aggressive federalism. Progressive federalism. We are not victims. We can shape the future. Decisions not conditions determine our future. My biggest critique of the Trump Administration is the victimization. We have a different mindset. We take accountability, we take responsibility and we try to fix things and work to change the environment conditions littered literally and figuratively. There is a construct, we pulled out of the paris agreement. Californiar of pulled out of his driveway and flew to beijing and met with president xi jinping to double down on the paris accords. Only california and a california governor, Governor Brown could have done that leading the charge with nations around the world to sign up on these protocols. We are doing the same thing with other states. We have done low carbon vehicle emission standards. That became the biden standard. Trump rolls back. Only point is, we have capacity that is unlimited. Ourselves to allow think beyond the constraints that we think limit our daytoday activities when it relates to our formal authority. Have the right to exercise moral authority and that is 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 is always been part of the frontier spirit of california, that is an opportunity to bring that mindset back into the national frame. I am enlightened by that. There is an entrepreneurial spirit of competition between states and governors and mayors and in that is innovation. That is what this state is all about. Followup onke to another point you made which is on the transformation of the criminal Justice System. Referencing the 90s, most of the campaigns were run on law and order. California is ahead of the rest of the country. It is an innovation in itself to be able to is prisons and reform the criminal Justice System and move away from that. Even 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 calendars these challenges moving forward . I would love to drill down on what you have done but also where youre heading in terms of Mental Health services you serveation, that People Better and save money by on policing for issues that are Mental Health or social welfare problems. This state led the nation in an aggressive mindset to lock folks up and throw away the key. Three strikes. I am sitting in Governor Browns old office. Its hard not to be reminded of his leadership. When he was first governor, we had 30,000 plus prisoners. We are now dropping below 100,000. What has happened over the last seven or eight years, we had many propositions past. Our murrell Marijuana Legalization efforts, i was proud of that to be on the bill. 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. There has been regional increases but not the aggregate of increase in violent crime. Any one criminal act is going to be exploited and is on a daily basis. But the trendlines are favorable. Its a different mindset. 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. Even getting a budget passed, i never imagined it even two years ago. That i would put a budget in that marked the moment where we shut down two prisons. Its amazing. Gov. Newsom 20 prisons we built and only one new university. You cant make this stuff up. Now, we are getting smarter, more resourceful. We are learning from best practices across the country. We are humble about what we know and what we dont know. The head of the Prison Guards union, they were in finland and stockholm. Saying maybere this is better for my members. That we have a really rehabilitative mindset and not a command and control mindset. What we are trying to achieve. Knowing that 90 plus percent of these folks are going to be on the street. How do we prepare them for that . We are barely scratching the surface, but we are making real progress. The great thing is climate, the public gets it. Independent republicans get it. Its a new mindset. The vast majority of people get it because they dont want to pay the taxes. They dont want to see the same old same old. They are looking for something new. We want to be safe, protected, but they are giving us the room to try new things. Thats really an important point across a number of investments you have made. When we spend less on the criminal Justice System, it doesnt cost as much and sometimes when you address the problem from a social safety or social welfare perspective or a Mental Health perspe