SHANDOBIL: OKAY. WE'LL NOW TRY SOMETHING ELSE. OVER THE PAST SEVERAL WEEKS, HUNDREDS OF CALIFORNIANS HAVE E-MAILED US SUGGESTED QUESTIONS THEY WOULD LIKE TO ASK THE CANDIDATES. WE INVITED FIVE OF THOSE VOTERS TO BE HERE WITH US TODAY, AND THE FIRST QUESTION FROM THE E-MAILS AND THE PERSON IN THE AUDIENCE COMES FROM MR. LANG OF ALAMEDA, YOUR QUESTION IS FOR MR. CAMEJO. YOU WILL HAVE ONE MINUTE TO ANSWER. NO REBUTTAL TIME ON THESE ANSWERS, JUST AN ANSWER AND THAT IS IT.

AUDIENCE MEMBER: CALIFORNIA ELECTRICITY INDUSTRY IS AT A CROSS-ROAD OF DEREGULATION VERSUS REREGULATION. WHAT WILL YOU DO TO FIX THE BROKEN SYSTEM AND THE HIGH ELECTRICITY RATES?

CAMEJO: (UNINTELLIGIBLE) GREEN PARTY IS THE ONLY PARTY IN CALIFORNIA THAT ARE OPPOSED TO THE DEREGULATION OF ENERGY. THE DEMOCRATS AND REPUBLICANS VOTED UNANIMOUSLY, PROMISING TO LOWER INSTEAD IT INCREASED AS WE PREDICTED WOULD HAPPEN. I BELIEVE THAT WE ARE IN A COMPLETE CRISIS ON THE ISSUE OF ENERGY. WORLDWIDE. I WANT TO SEE CALIFORNIA BECOME THE LEADER FOR RENEWABLE ENERGY, THE ONLY REAL SOLUTION. WE ARE SETTING OURSELVES UP FOR FUTURE CRISIS BY DEFENDING ON NATURAL GAS WHOSE PRICES WILL GO THROUGH THE SEALING AS WE RUN OUT OF IT. WE HAVE TO IMPORT IT. NO EFFORT IS BEING MADE TO SOLVE THIS. WE HAVE TO REGULATE THE INDUSTRY. THE QUESTION IS HOW TO DO IT TO DO IT RIGHT? THE WAY THAT WE HAVE BEEN DEREGULATING IS SIMPLY LEADING TO CORPORATIONS MANAGEMENT TAKING THE MONEY AND GOING INTO CRISIS AND YOU ALWAYS END UP PAYING FOR IT, AS TAXPAYERS AND CONSUMERS. WE NEED TO CHANGE IT AND HAVE A VISION.

SHANDOBIL: OKAY. OUR NEXT QUESTION IS FROM DANA, MARIN COUNTY. YOU HAVE A QUESTION FOR MR. UEBERROTH.

AUDIENCE MEMBER: YES, I DO. I'M A POET AND EDUCATOR HERE IN THE BAY AREA, RECENT BUDGET CUTS HAVE ALL BUT ELIMINATED THE CALIFORNIA ARTS COUNCIL, ARTS AND CORRECTIONS, CALIFORNIA POETS IN THE SCHOOLS AND COUNTLESS ART ORGANIZATIONS ACROSS THE STATE. WHAT ARE YOUR PLANS TO REMAINTAIN AND PROMOTE THE INNOVATIVE ARTS PROGRAMMING CALIFORNIA HAS BEEN FAMOUS FOR? WHAT IS YOUR POSITION ON PUBLIC FUNDING OF THE ARTS IN CALIFORNIA AT A LEVEL EQUAL TO THE NATIONAL AVERAGE OF $1.10 PER CAPITA?

UEBERROTH: FRANKLY, THERE IS NOT ENOUGH MONEY TO GO AROUND IN CALIFORNIA. AND I WISH THAT I COULD WAVE A MAGIC WAND AND TELL EVERYONE THERE IS GOING TO BE PLENTY OF MONEY. THIS GOVERNMENT IN SACRAMENTO HAS SPENT ENORMOUS AMOUNTS. AND YOU HAVE NOT GOTTEN YOUR FAIR SHARE. THE TRUTH IS NOW THERE IS NO MORE ENORMOUS AMOUNT TO SPEND. WE HAVE TO GET THE ELECTED OFFICIALS, THE FIRST DAY I'M ELECTED GOVERNOR IN A ROOM, LOCK THE ROOM AND SAY TO THEM BALANCE THIS BUDGET, FAMILIES KNOW THEY HAVE TO TIGHTEN BELTS, COMPANIES KNOW THEY HAVE TO TIGHTEN THE BELTS, THE STATE HAS TO TIGHTEN THE BELT TO GET REAL. WE HAVE TO GET REAL. AND THEN WE HAVE TO DO SOMETHING TO GET MONEY INTO THE SYSTEM. THE WAY YOU DO THAT IS TO HAVE MORE JOBS. AND PEOPLE ARE LOSING THEIR JOBS ACROSS THIS STATE, LOSING THE GOOD JOBS. AND IT TRICKLES RIGHT ON DOWN ALL THE WAY SO THAT EVERY JOB, IF WE BRING IN NEW JOBS AND TURN THE STATE AROUND, WHERE WE HAVE A SIGN SAYING WEE WELCOME EMPLOYERS HERE, THEN WE WILL START TO MOVE UP THE ECONOMY THROUGH THE STATE AND THEN WE CAN GET TO EVERYTHING WE WANT TO GET TO, ARTS AND ALL OF THE REST.

SHANDOBIL: OKAY. THE NEXT QUESTION IS A PERSON FROM OCEAN SIDE CALIFORNIA, LEON, AND MR. PAGE, YOU HAVE A QUESTION FOR THE LIEUTENANT GOVERNOR.

AUDIENCE MEMBER: YES, I DO. MR. BUSTAMANTE, THIS IS A QUESTION ABOUT ILLEGAL IMMIGRATION. I BELIEVE YOU SUPPORT THE PROPOSAL TO ALLOW UNDOCUMENTED ALIENS TO RECEIVE DRIVERS LICENSES.

BUSTAMANTE: THAT'S CORRECT.

AUDIENCE MEMBER: IS THERE ANY GOVERNMENT PROGRAM OR SERVICE THAT YOU BELIEVE UNDOCUMENTED ALIENS SHOULD NOT RECEIVE?

BUSTAMANTE: WELL, FIRST OF ALL, LET ME ADDRESS THE DRIVERS LICENSE, DRIVERS LICENSE FOR THOSE PEOPLE WHO ARE WORKING. BY DEFINITION, A FARMWORKER WORKS. BY DEFINITION A HOTEL WORKER IS WORKING. WHAT WE ARE DOING IS THAT WE HAVE 70% OF ALL OF THE FOLKS WHO ARE IN AGRICULTURE COME FROM ACROSS THE BORDER. 30% OF CONSTRUCTION COMES FROM THOSE PEOPLE WHO ARE COMING ACROSS THE BORDER. WE HAVE A SUBSTANTIAL NUMBER OF PEOPLE WHO ARE HERE TODAY WHO ARE WORKING, AND TAKING CARE OF THEIR FAMILIES AND PROVIDING US THE BENEFIT OF THE LABOR. LABOR THAT YOU AND I DO NOT DO, IN FACT, WOULD NOT DO. I KNOW BECAUSE I CAME FROM THOSE AREAS AND THOSE FIELDS IN THE CENTRAL VALLEY. I'VE PICKED CON TO THE AND I'VE PICKED PEACHES AND DONE THE KIND OF HARD LABOR THAT HAS BEEN OUT THERE IN THOSE FIELDS. YOU KNOW WHAT? I'M GLAD THAT I'M OUT. THOSE PEOPLE WHO ARE DOING IT. I RESPECT THEM FOR THE WORK THAT THEY DO. IF IT TAKES A DRIVERS LICENSE FOR THEM TO GET TO WORK, TO TAKE CARE OF THEIR FAMILIES, GET THEIR KIDS TO SCHOOL AND TAKE CARE OF THE SENIORS, LET THEM GO TO SOME KIND OF A DOCTORS APPOINTMENT, I'M FOR GIVING THEM A DRIVERS LICENSE.

SHANDOBIL: I DO NOT THINK THAT YOU DIRECTLY ANSWERED THE QUESTION, WHICH WAS ARE THERE ANY SERVICES THAT YOU WOULD DENY?

BUSTAMANTE: I WOULD SAY THAT THERE ARE A LOT OF SERVICES THAT ARE GIVEN TO CITIZENS THAT CLEARLY ARE NOT ELIGIBLE FOR THOSE WHO ARE HERE ILLEGALLY. BUT FOR THE BASIC NEEDS, FOR SOMEONE WHO GETS INJURED, I MEAN IN AGRICULTURE IT IS A VERY DANGEROUS JOB, IN CONSTRUCTION IT IS DANGEROUS, IF SOMEONE IS WORKING AND THEY ARE PROVIDING US THE OPPORTUNITY, THE FRUITS OF THEIR LABOR, AND THEY GET HURT, I THINK THEY SHOULD BE RECEIVING EMERGENCY MEDICAL CARE. I THINK THEY SHOULD BE ELIGIBLE TO HAVE THEIR CHILDREN GO AND GET A GOOD EDUCATION. THEY ARE HEAR, PAYING TAXES. EVERYTHING THAT WE'VE SEEN THEY PAY $1400 MORE A YEAR THAN THEY GET BACK ON ASSISTANCE.

SHANDOBIL: THANK YOU, LIEUTENANT GOVERNOR. THE NEXT QUESTION FOR ARIANNA HUFFINGTON, FROM A BERKELEY RESIDENT.

DO YOU SUPPORT HIGHER PAY FOR TEACHERS? IF SO, IN WHAT FORM? WOULD IT BE FOR THE TEACHERS IN LOW PERFORMING SCHOOLS, MATH, SCIENCE TEACHERS, MERIT PAY, WHAT?

HUFFINGTON: I SUPPORT HIGHER PAY FOR TEACHERS, RATHER THAN PRISON GUARDS, WHICH IS WHAT WE HAVE AT THE MOMENT. AND I SUPPORT A GREATER AUTONOMY AMONG SCHOOL DISTRICTS. I'M A PASSIONATE BELIEVER IN CHARTER PUBLIC SCHOOLS. AS GOVERNOR, I WILL EQUALIZE FUNDING FOR PUPIL FUNDING FOR CHARTER SCHOOL AND MAKE IT POSSIBLE FOR EACH CHARTER SCHOOL TO GIVE MARRIED PAY AND TO ACTUALLY ENCOURAGE THE BEST TEACHING, THE BEST CREATIVE TEACHING. I'M OPPOSED ALSO TO THE SO-CALLED LEAVE NO CHILD BEHIND ACT THAT THE BUSH ADMINISTRATION HAS PUT FORWARD. WHICH IS ANOTHER UNFUNDED MANDATE FOR THE STATE OF CALIFORNIA, WHICH IS PUTTING THE EMPHASIS ON TESTING, TESTING, INSTEAD OF TEACHING. YES, ABSOLUTELY. I THINK THAT INSTEAD OF FIRING TEACHERS, AS THIS GOVERNOR DID, IN ORDER TO HAVE MORE MONEY TO REWARD HIS PRISON GUARD CONTRIBUTORS, I WILL PUT TEACHERS FIRST. I WILL PUT BOOKS, NOT BARS AS MY HIGHEST PRIORITY IF I'M ELECTED GOVERNOR.

SHANDOBIL: OKAY. WE NOW GO TO BILL FROM SACRAMENTO. AND YOU HAVE A QUESTION FOR STATE SENATOR MCCLINTOCK.

AUDIENCE MEMBER: SENATOR TOM MCCLINTOCK, AS YOU KNOW, THE VAST MAJORITY OF THE POPULATION OF CALIFORNIA LIVES NEAR THE COAST. PEOPLE COME FROM ALL OVER THE WORLD SEE OUR COAST. AS GOVERNOR, WOULD YOU WORK TO STRENGTHEN THE CALIFORNIA COASTAL COMMISSION, THE REGULATORY AGENCY, OR WOULD YOU WORK TO ABOLISH IT?

MCCLINTOCK: I WOULD WORK TO RESTORE THAT DECISION-MAKING TO THE LOCAL COMMUNITIES ALONG THE COAST. I'VE ALWAYS BELIEVED THAT LOCAL COMMUNITIES WILL BE FAR MORE JEALOUS GUARDIANS OF THEIR COASTLINE THAN SOME STATEWIDE COMMISSION FILLED WITH POLITICAL APPOINTEES. IF YOU WILL RECALL, ONE OF THE GREAT SCANDALS OF THE LAST DECADE INVOLVED THE COASTAL COMMISSION. AND INFLUENCED PEDALLING THAT WAS GOING ON IN THE NATHANSON SCANDAL. I WOULD LIKE TO RESTORE THE PROTECTION OF THE COASTLINES TO THE LOCAL COMMUNITIES RATHER THAN FROM A BUREAUCRATIC ORGAN OF STATE GOVERNMENT FILLED WITH POLITICAL APPOINTMENTS.

SHANDOBIL: OKAY. THANK YOU. WE WOULD LIKE TO THANK THE AUDIENCE MEMBERS COMING UP WITH THE QUESTIONS. WE WOULD ALSO LIKE TO TAKE A MOMENT TO THANK ALL OF THE OTHER VOTERS WHO SENT IN QUESTIONS. WE WISH WE HAD TIME TO INVITE EVERYONE ASKING A QUESTION TO ASK IT, IF IT MAKES YOU FEEL BETTER, WE'VE BORROWED IDEAS FOR THE PANEL, WE'LL RESUME WITH PANEL QUESTIONS RIGHT NOW. AGAIN, THESE WILL BE FOR ONE-MINUTE ANSWERS, 30 SECOND REBUTTALS FROM THE CANDIDATES.

THE FIRST QUESTION IS FOR SENATOR MCCLINTOCK. IF I'M NOT MISTAKEN, IT COMES FROM ME. YOU SAID THAT YOU WOULD LIKE TO REPEAL THE RECENT CAR TAX INCREASE. BUT DOING SO WOULD ADD ABOUT $4 BILLION TO THE ALREADY GAPING BUDGET HOLE. HOW WOULD YOU MAKE UP FOR THAT? SPECIFICALLY, WHAT GETS CUT SO THAT THE CAR TAX CAN GO BACK DOWN?

MCCLINTOCK: IT IS NOT HARD TO FIND WASTE IN A STATE BUDGET OF A STATE SPENDING AS MUCH AS CALIFORNIA AND PRODUCES AS LITTLE. SIMPLY RESTORING THE STATE GOVERNMENT THE SAME FREEDOM THAT EVERY FAMILY AND BUSINESS HAS TO SHOP AROUND FOR THE BEST SERVICE AT THE LOWEST PRICE, WE WOULD SAVE ABOUT $9 BILLION ACROSS ALL DEPARTMENTS ACCORDING TO THE RECENT FOUNDATIONS, THE RECENT STUDY OF FINANCES, STREAMLINING THE AGENCIES DUPLICATING FEDERAL FUNCTIONS, THERE IS ANOTHER $67 BILLION OF SAVINGS THERE. SIMPLY CONFORMING OUR WORKERS' COMPENSATION LAW TO ARIZONA'S, ONE OF THE FIRST THREE ACTS I WILL TAKE WITHIN MINUTES OF TAKING THE OATH OF OFFICE, WILL BE TO CALL A SPECIAL SESSION TO DO THAT, AND IT WOULD LIFT A BURDEN FROM THE JOB SECTOR, I WOULD ALSO DO $2.5 BILLION DOLLAR OF DIRECT SAVINGS.

IF YOU LOOK AT PAT'S BROWNS LAST YEAR IN OFFICE WHEN THE STATE PROVIDED SERVICE, HE SPENT AN INFLATION-ADJUSTED DOLLAR LESS THAN HALF OF WHAT IS BEING SPENT RIGHT NOW TO DO ALL OF THAT.

SHANDOBIL: I ASSUME, WHEN YOU SAY THAT YOU WOULD GIVE CALIFORNIANS THE OPTION TO KIND OF FIND SERVICES ELSEWHERE, YOU ARE TALKING ABOUT PRIVATIZING SOME GOVERNMENT SERVICES?

MCCLINTOCK: RIGHT. CONTRACTING OUT SERVICES, THAT THE PRIVATE SECTOR CAN PROVIDE MORE EFFICIENTLY, CHEAPLY THAN THE STATE'S BUREAUCRACY.

SHANDOBIL: LAYING OFF STATE WORKERS, IS THAT WHAT YOU ARE TALKING ABOUT?

MCCLINTOCK: YES, IT DOES. YES, IT DOES. WE'VE ADDED 44,000 NEW STATE WORKERS TO THE PUBLIC STATE PERSONNEL ROLES IN THE LAST FOUR YEARS. WE CANNOT SUSTAIN THOSE KINDS OF EXPENSES. WE HAVE NOW A RECORD LEVEL OF STATE PUBLIC EMPLOYMENT AT THE SAME TIME WE'VE LOST NEARLY A THIRD OF A MILLION PRIVATE SECTOR JOBS IN 2.5 YEARS. THE PUBLIC SECTOR CANNOT CONTINUE TO GROW AT THE EXPENSE OF THE PRIVATE SECTOR.

SHANDOBIL: WE WILL GIVE THE CANDIDATES A CHANCE TO REPUTE. ARIANNA HUFFINGTON, DO YOU CARE TO RESPOND?

HUFFINGTON: YES. I TOO WOULD REPEAL THE CAR TAX. BUT I WOULD FIND THE ADDITIONAL REVENUE BY ENDING THE CONSTRUCTION OF THE PRISON PROJECTS, BY FREEZING PRISON GUARD SALARIES, BY HAVING A SEVERANCE TAX ON OIL AND HAVING HIGHER TAXES ON ALCOHOL AND TOBACCO.

SHANDOBIL: OKAY. CRUZ BUSTAMANTE, YOUR RESPONSE?

BUSTAMANTE: I THINK THAT TOM HAS A GOOD IDEA IN TERMS OF REPEALING. I THINK IT IS A UNFAIR BURDEN ON WORKING FAMILIES, BUT I WOULD GET RID OF IT BY RAISING ALCOHOL AND TOBACCO TAXES.

HUFFINGTON: NO, YOU WOULD NOT.

BUSTAMANTE: IF YOU SEE MY PLAN, YOU WILL SEE THAT I DID IT.

HUFFINGTON: YOU GOT QUITE A BIT OF MONEY FROM THE TOBACCO COMPANIES.

BUSTAMANTE: I ALSO SUED THEM, ARIANNA.

SHANDOBIL: IT IS ENTERTAINING, BUT IT IS NOT IN OUR FORMAT.

HUFFINGTON: LET'S BE MORE ENTERTAINING.

SHANDOBIL: NOW TO PETER UEBERROTH, YOUR CHANCE TO REBUT.

UEBERROTH: IT IS NOT A FUNNY SUBJECT. BASICALLY, YOU HAVE TO REPEAL THE TAX. IT IS A TAX, IT IS NOT A FEE. IT IS A GIMMICK THEY ARE TELLING CALIFORNIA DRIVERS THAT WE'RE -- IT IS REALLY NOT A TAX. IT IS A FEE. IT STILL COMES OUT OF YOUR PAY CHECK. THERE IS ENOUGH WASTE IN GOVERNMENT. PLENTY OF WASTE. E'VE BEEN ON A HUGE SPENDING BINGE. 36% INCREASED SPENDING OVER THE LAST THREE, THREE OR FOUR YEARS, TAKE THAT MONEY AND ELIMINATE THE WASTE. EVERYONE, EVERY VOTER, EVERYONE KNOWS THAT THE GOVERNMENT CANNOT DELIVER THE SERVICES. IT IS ALWAYS THE WAY THE PRIVATE SECTOR CAN. WE ELIMINATE THE WASTE. AND WE WOULD BE SURE THAT WE DO NOT -- WE QUIT PAYING THE TAXES.

SHANDOBIL: THAT IS TIME, I'M SORRY. PETER CAMEJO.

CAMEJO: OUR BUDGET HEAVILY GOES IT EDUCATION. WHEN THE REPUBLICANS TALK ABOUT CUTTING IT, THEY WILL CUT EDUCATION, THAT IS WHAT THEY ARE TALKING ABOUT. YOU NOTICE THEY NEVER MENTION A SPECIFIC THING ABOUT WHAT THEY WILL CUT. IF YOU ARE A SERIOUS CANDIDATE, SAY IT. DO I NOT WANT TO CUT FROM EDUCATION. I WANT TO PUT MORE MONEY INTO IT. I DO NOT WANT TO SEE IT PRIVATIZED. FREE PUBLIC EDUCATION WAS A GREAT VICTORY IN THIS NATION, IT IS PART OF OUR CULTURE AND TRADITION, IT MUST BE PROTECTED AND YOU CAN ONLY DO THAT WITH A FAIR TAX IN CALIFORNIA.

SHANDOBIL: OKAY. THE NEXT QUESTION, FOR THE NEXT QUESTION WE GO TO DAN, AND YOU HAVE A QUESTION FOR PETER UEBERROTH.

BORENSTEIN: MR. UEBERROTH, LET'S START WITH SOME OF WHAT I THINK YOU MIGHT SEE AS WASTE IN GOVERNMENT, IF YOU WILL. REDUCED MEDI-CAL FRAUD BY 1.5 BILLION, THAT IS WHAT YOU HAVE SAID. WHERE IS THAT FRAUD? HOW DO YOU DOCUMENT THAT? AND GIVEN CURRENT BUDGET CONSTRAINTS, ARE THERE ENOUGH STATE WORKERS WHO WOULD HAVE THE EXTRA TIME TO INVESTIGATE FRAUD? ALSO, MIGHT SOME TRULY NEEDY BE INADVERTENTLY THROWN OFF THE SYSTEM IN THE PROCESS?

UEBERROTH: WELL, BASICALLY THERE IS WASTE IN GOVERNMENT. AND THERE IS FRAUD IN GOVERNMENT. AND I DO NOT THINK ANYONE LISTENING TO THIS PROGRAM WOULD DISAGREE. AND WE HAVE TO AGGRESSIVELY DO THAT, TEAR IT UP BY THE ROOTS. WORKERS COMP IS -- WE HAVE THE HIGHEST RATES --

BORENSTEIN: I'M SORRY, I THINK THAT MY QUESTION HAS TO DO WITH MEDI-CAL FRAUD.

UEBERROTH: FOR ME TO SIT HERE AND TAKE IT ONE AFTER ANOTHER AND AFTER ANOTHER OF THE FRAUD IN MEDI-CAL, IT WOULD NOT WORK. THERE IS ALL KINDS OF THINGS THAT I COULD SPEND NOT IN A ONE MINUTE SOUND BYTE. BUT FRANKLY WE ALL KNOW THERE IS FRAUD. THE 1.5 BILLION IS A VERY, VERY CONSERVATIVE ESTIMATE. MANY PEOPLE SAY IT IS A GREAT DEAL MORE. THE REAL, TRUE THING IS WE'VE GOT TO GET REVENUES INTO THE STATE. AND SPEND THEM EFFICIENTLY IF WE'RE GOING TO TAKE CARE OF PEOPLE.

BORENSTEIN: LET ME TRY THIS ONE MORE TIME, THE LAST PARTS OF MY QUESTION. HOW DO YOU DOCUMENT THAT? GIVEN CURRENT BUDGET CONSTRAINTS, ARE THERE ENOUGH STATE WORKERS WHO WOULD HAVE THE EXTRA TIME TO INVESTIGATE FRAUD? AND MIGHT SOME TRULY NEEDY BE INADVERTENTLY THROWN OUT OF THE SYSTEM IN THE PROCESS? I DID NOT HEAR AN ANSWER TO ANY OF THOSE THREE QUESTIONS.

UEBERROTH: I'M NOT GOVERNOR YET. WHEN I AM, I'M FIND THE RIGHT PEOPLE TO INVESTIGATE THE FRAUD. IF WE HAVE THEM IN THE STATE GOVERNMENT WHO ARE REALLY SINCERE ABOUT DOING THAT, I'LL FIND THEM. AND IF WE DON'T, I'LL HAVE TO BRING THEM IN AND REPLACE SOME OTHER PEOPLE THAT ARE NOT DOING THEIR JOB, NOT DOING THEIR JOB IN CALIFORNIA.

SHANDOBIL: THANK YOU MR. UEBERROTH. THE FIRST REBUTTAL TO SENATOR MCCLINTOCK.

MCCLINTOCK: I WOULD DEFEND THE NUMBERS OF PETER. I THINK THEY ARE LOW. THE NUMBERS I'VE SEEN I BELIEVE ARE 2.5 BILLION DOLLARS IN MEDI-CAL FRAUD AND ONE OF THE BIG PROBLEMS IS THERE IS A LACK OF INTEREST IN STOPPING IT. GOING TO THE UNEMPLOYMENT INSURANCE, THERE IS 100 MILLION DOLLARS OF FRAUD THAT THE STATE KNOWS ABOUT. IT COULD STOP IT SIMPLY BY VERIFYING EMPLOYMENT RECORDS. THEY'VE NOT DONE SO. I HAVE A BILL TO DO THAT. IT IS STUCK NOW, JUST KILLED IN THE STATE ASSEMBLY ON A PARTY LINE VOTE. PETER IS RIGHT, THE FRAUD IS RAMPANT AND NEEDS TO BE ADDRESSED.

SHANDOBIL: ARIANNA HUFFINGTON.

HUFFINGTON: EVERYONE IS AGAINST FRAUD. THE REAL DISGRACE THAT THE REPUBLICANS AND DEMOCRATS ARE DOING NOTHING ABOUT IS THE FACT THAT YOU HAVE OVER 6 MILLION UNINSURED IN THE STATE, AND WE HAVE CHILDREN THAT HAVE TO GO INTO EMERGENCY ROOMS JUST TO GET THE BASIC CARE. I MEAN, THAT IS A GREAT DISGRACE IN A GREAT STATE LIKE OURS. AND THAT WOULD BE MY HIGHEST PRIORITY, RATHER THAN SIMPLY ALL OF THIS PLATITUDES ABOUT FRAUD, THE ESTIMATES COMING OUT FROM RESEARCH FOUNDATIONS AND SUSPECT THINK TANKS.

SHANDOBIL: LIEUTENANT GOVERNOR.

BUSTAMANTE: THERE IS FRAUD, NO DOUBT ABOUT THAT. BUT I THINK THAT THE ISSUE IS GREATER THAN THAT. WE SHOULD MAKE SURE THAT IF WE HAVE A DEPARTMENT THAT WILL ROOT OUT FRAUD, YOU HAVE TO FIGURE OUT HOW TO BUILD IT UP. IF YOU ARE GOING TO MAKE SURE THAT YOU WILL DEAL WITH THE REAL PROBLEM THOUGH, YOU WILL HAVE TO SUPPORT A PROGRAM LIKE SV2 THAT WILL BE PROVIDING EMPLOYER -- EMPLOYEES, FIVE MILLION EMPLOYEES IN CALIFORNIA THE ABILITY TO GET REAL HEALTHCARE. THAT IS WHAT YOU'RE GOING TO HAVE TO DO. PROPOSE IT, MOVE IT, AND MAKE SURE IT GETS IMPLEMENTED.

SHANDOBIL: THE FINAL REBUTTAL TO THIS QUESTION TO PETER CAMEJO.

CAMEJO: YOU KNOW, FRAUD EXISTS, OF COURSE. WE HAVE TO LOOK AT IT. IN FACT, I BELIEVE THERE IS A LOT OF -- I'VE CALLED FOR AN AUDIT OF THE LAST FIVE YEARS TO TRY TO FIND OUT WHAT IN THE WORLD HAPPENED. HOW DID WE GET FROM HAVING THIS INCREDIBLE, UNUSUAL INCOME AND END UP WITH A MASSIVE DEFICIT. I POINTED OUT AT MY FIRST PRESS CONFERENCE AN EXAMPLE, OVER $6.4 MILLION GIVEN TO A CORPORATION SUPPOSEDLY FOR EDUCATION WHEN THERE IS NO EDUCATION. THERE IS PROGRAMS HAPPENING HERE WHERE THEY ARE GIVING AWAY MONEY TO CORPORATIONS, AND TO -- BASICALLY, YOU KNOW, WELFARE FOR THE RICH. WE HAVE TO STOP THAT WASTE.

SHANDOBIL: OKAY. THANK YOU. WE MOVE ON NOW TO THE NEXT QUESTION FOR PILLAR WHO HAS A QUESTION FOR PETER CAMEJO.

MORRENO: MR. CAMEJO, THE IMPLEMENTATION OF THE HIGH SCHOOL EXIT EXAM HAD TO BE POSTPONED FOR THREE YEARS BECAUSE OF THE DISPARITIES IN ACCESS TO GOOD EDUCATION WOULD HAVE MADE FOR A HIGH FAILING RATE FOR AFRICAN-AMERICAN AND LATINO STUDENTS. GIVEN THAT APPARENTLY RIGHT NOW THERE IS NO MONEY TO SOLVE THAT DISPARITY, WILL YOU GET RID OF THE REQUIREMENT UNTIL THE PLAYING FIELD IS MORE LEVEL?

CAMEJO: I THINK SO. I'M NERVOUS ABOUT THE MANIA WE HAVE NOW ON TESTING. THE PROBLEMS ARE OFTEN BLAMED ON THE TEACHERS. THE TEACHERS CANNOT SOLVE SOCIAL PROBLEMS THAT THE SOCIETY AS A HOLE HAS TO SOME OF. THEY ARE DOING THE BEST THAT THEY CAN. WE HAVE TO HAVE A HOLISTIC APPROACH TO JUDGING THE WORK THEY ARE DOING. WHERE I THINK THIS IS GOING, WITH ALL OF THE TESTING, IS TO SAY THAT PUBLIC EDUCATION IS NOT WORKING AND WE'LL PRIVATIZE. IT IS NOT THE FAULT OF THE TEACHER, THE CTA, THE TEACHER'S UNION HAS BEEN EXPLICIT, CLEAR ON THIS, COME FORWARD AND SAID THAT THE TESTING MANIA IS HURTING US IN THE WAY THAT THE TEACHERS HAVE TO TEACH AND THEIR JOB AND THEIR RESPONSIBILITIES. WE HAVE TO FIGHT THIS. THERE IS A HIDDEN AGENDA BEHIND THE MANIA FOR TESTING EVERYONE AND USE THAT GO AS A CRITERIA, INSTEAD OF A HOLISTIC CRITERIA.

MORRENO: BUT HOW WOULD YOU MEASURE THAT THE STUDENTS ARE MOVING FORWARD AND REALLY GETTING A EDUCATION?

CAMEJO: I BELIEVE THAT THAT IS COMPLEX. I THINK THAT YOU HAVE TO LOOK AT A SCHOOL BY SCHOOL SITUATION. THE LANGUAGE ISSUES, ALL OF THESE DIFFERENT ISSUES NECESSARY FOR MAKING JUDGMENTS ON THE ADVANCE OF PEOPLE. WE ARE MAKING ADVANCES IN CALIFORNIA. AND BY THE WAY, EVEN THOUGH I'VE BEEN EXTREMELY CRITICAL OF GOVERNOR GRAY DAVIS, AS THOSE OF YOU HAVE HEARD ME KNOW, BUT HE DID PUT MORE MONEY INTO EDUCATION, YOU KNOW? WE ARE MAKING AN EFFORT. WE ARE MAKING HEADWAY. BUT WE STILL HAVE A LONG WAY TO GO. AND WE NEED TO IMPROVE GENTLEMEN INDICATION. BUT THE TESTING IS NOT THE WAY WE'RE REALLY GOING TO JUDGE IT IN THE END.

SHANDOBIL: WE'LL NOW MOVE ON TO THE REBUTTAL TO YOUR ANSWER AND THE FIRST ONE GOES TO PETER UEBERROTH.

UEBERROTH: WE HAVE SPEND A LOT MORE MONEY ON EDUCATION, A WHOLE LOT MORE. AND IT WILL RUN OUT. AND THE TEACHERS, WHAT I WOULD PROPOSE, YOU TAKE THE MONEY THAT IS IN WASTE AND BUREAUCRACY OF OTHER TEACHERS AND PUT IT IN THE CLASSROOM. THEN WHEN IT COMES TO THE TIME TO TEST, SPECIFIC TO YOUR QUESTION, REALLY TAKE A LOOK AT IT AND SAY THE ONLY THING I'M CONVINCED THAT I WANT TO SEE, I WANT TO SEE EVERYONE GRADUATE WITH PROFICIENCY IN ENGLISH TO GET A DECENT JOB, PAY TAXES AND THE STATE STARTS TO RECOVER.

SHANDOBIL: ARIANNA HUFFINGTON, YOUR CHANCE TO REBUT.

HUFFINGTON: ACTUALLY, I HAVE TO DISAGREE HERE WITH PETER CAMEJO'S PRAISING OF GOVERNOR GRAY DAVIS WHO IS THE GOVERNOR CONTINUING TO FIGHT A CLASS ACTION SUIT BROUGHT BY THE ACLU TO REPRESENT UNDERPRIVILEGED STUDENTS IN THE STATE. OUR GOVERNOR IS SPENDING $18 MILLION OF OUR MONEY FIGHTING THAT LAWSUIT.

SHANDOBIL: LIEUTENANT GOVERNOR, DO YOU HAVE A REBUTTAL?

BUSTAMANTE: WE ALREADY KNOW HOW TO TEACH ENGLISH AND HISTORY. WE KNOW HOW TO TEACH. THE TEACHERS OF THIS STATE KNOW HOW TO TEACH. WHAT WE NEED TO DO IS GET OUT OF THEIR WAY. THE MAGIC OF EDUCATION TAKES PRAISE IN THE CLASSROOM. THIS MULTI-BILLION DOLLAR ENTERPRISE WE CALL EDUCATION OUGHT TO BE MORE ABOUT WHAT GOES IN THE CLASSROOM AND LESS ABOUT WHAT TAKES PLACE OUTSIDE.

SHANDOBIL: I TAKE THAT TO MEAN THAT YOU DO NOT ADVOCATE THE TESTING?

BUSTAMANTE: IN TERMS OF TESTING, I THINK IT IS IMPORTANT THAT WE HAVE TESTING. BUT I ALSO THINK THAT THE TEACHERS NEED TO HAVE A LOT MORE SAY AS TO WHAT GOES ON IN THE CLASSROOMS. THE MAGIC OF EDUCATION, AGAIN, IS ABOUT A MOTIVATED TEACHER AND A MOTIVATED STUDENT WITH PROPER TEXTBOOKS AND INSTRUCTIONAL MATERIALS AND LESS ABOUT THE COMPLICATIONS THAT WE PUT. EVERYONE HAS SUCH A GREAT IDEA. EVERYONE HAS BEEN HAVING GREAT IDEAS OVER THE LAST SEVERAL YEARS. THE KIDS IN THE SCHOOLROOMS TODAY DO NOT HAVE PROPER TEXTBOOKS.

SHANDOBIL: THANK YOU. SENATOR MCCLINTOCK.

MCCLINTOCK: I WOULD NOT POSTPONE THE EXAMS. YOUR POINT IS WELL TAKEN. WE PUT $270,000 ON AVERAGE INTO EVERY CLASSROOM IN THE STATE. I HAVE TWO KIDS IN THE PUBLIC SCHOOLS. I CAN TELL YOU FIRSTHAND ONLY A FRACTION OF IT GETS INTO THE CLASSROOM. FOR YEARS I PROPOSED CLASSROOM BASED BUDGETS WHERE THE BONE WOULD BE INJECTED INTO THE CLASSROOM AT THE SCHOOL LEVEL AND REQUIRE THE BUREAUCRACY TO JUSTIFY HOW MUCH THEY ARE TAKING OUT FOR THEIR SUPPORT AND THE DEMOCRATS KILLED IT IN THE LEGISLATURE, SAYING IT IS TOO MUCH TROUBLE, NOT TO WRITE THE CHECKS, JUST TOO MUCH TROUBLE TO ENSURE THE MONEY GETS INTO THE CLASSROOM TO EDUCATE THE KIDS.

SHANDOBIL: THE NEXT QUESTION IS FROM JOHN MYERS, DIRECTED TOWARD ARIANNA HUFFINGTON.

MYERS: MS. HUFFINGTON, ONE OF THE MOST SOLEMN JOBS OF A GOVERNOR IS HIS OR HERS INVOLVEMENT IN THE SENTENCE FOR DEATH. YOU'VE CALLED FOR A MORATORIUM ON CAPITAL PUNISHMENT BECAUSE OF A RACIAL DISPARITY IN THE PROCESS AND FACTUALLY INNOCENT PEOPLE SENTENCED TO DEATH. ARE YOU PHILOSOPHICALLY OPPOSED TO THE DEATH PENALTY OR ITS APPLICATION.

HUFFINGTON: I'M PHILOSOPHICALLY OPPOSED TO THE DEATH PENALTY AND VERY OPPOSED TO THE WAY IT HAS BEEN APPLIED IN CALIFORNIA AND ACROSS THE COUNTRY. AT A TIME WHEN NEW DNA TESTING HAS KNOWN THAT INNOCENT PEOPLE ARE BEING PUT TO DEATH BY GOVERNMENT, I ABSOLUTELY WOULD WANT A MORATORIUM. THE ONLY REASON WE DO NOT HAVE MORE ELECTED OFFICIALS ASKING FOR A MORATORIUM IS BECAUSE THEY ONLY FOLLOW THE POLLING RESULTS AND THEY ARE SPINELESS TO SPEAK THEIR OWN MINDS AND HEARTS. THAT IS WE NEED INDEPENDENT DISCUSSION ON THE ISSUES OF DEATH PENALTY AND OTHERS IN THE STATE.

MYERS: YOU WOULD COMMUTE DEATH PENALTIES OUT THERE, IS THAT CORRECT, BY BEING PHILOSOPHICALLY OPPOSED?

HUFFINGTON: I WOULD HAVE TO CHANGE THE LAW. AS A GOVERNOR, I HAVE TO ENSURE THAT THE LAWS ARE BEING IMPOSED PROPERLY. BUT I WOULD ACTUALLY GO OUT THERE AND USE THE BULLET PULPIT TO CONVINCE THE PEOPLE OF CALIFORNIA OF WHAT IS RIGHT. THAT IS A POWER THAT THE GOVERNOR HAS, THE POWER OF THE PULPIT, TO CREATE A NEW CONSENSUS AROUND THE ISSUE AS HAS HAPPENED AROUND THE ISSUE OF THE MORATORIUM ALL AROUND THE COUNTRY.

SHANDOBIL: THANK YOU. FOR THE FIRST REBUTTAL WE GO TO THE LIEUTENANT GOVERNOR.

BUSTAMANTE: I SUPPORT THE DEATH PENALTY. BUT I WOULD GIVE EVERY PERSON WHO IS CONVICTED EVERY OPPORTUNITY TO TRY TO PROVE THEY'RE INNOCENCE.

SHANDOBIL: OKAY. SENATOR MCCLINTOCK?

MCCLINTOCK: I'M THE AUTHOR OF THE CURRENT LETHAL INJECTION DEATH PENALTY. I SUPPORT IT WHOLEHEARTEDLY. IT IS THE ADVENT OF DNA TESTING THAT SHOULD GIVE US GREATER CONFIDENCE IN THE LEGAL PROCESS. AND IT IS OF UTMOST IMPORTANCE TO THE SECURITY OF THE LAW ABIDING PEOPLE OF THIS STATE TO BE PROTECTED FROM VIOLENT PLED SORES THAT IS THE PRIMARY RESPONSIBILITY OF GOVERNMENT.

SHANDOBIL: PETER CAMEJO.

CAMEJO: IN ILLINOIS THEY FOUND ABOUT 15 INNOCENT PEOPLE ON DEATH ROW. I'M TOTALLY OPPOSED TO THE DEATH PENALTY AS ARE MOST ADVANCED INDUSTRIAL NATIONS IN THE WORLD, IF NOT ALL OF THEM, EXCEPT THE UNITED STATES. BUT I'M ALSO AGAINST THREE STRIKES WHERE WE PUT A PERSON IN JAIL FOR LIVE FOR STEALING $150 WORTH OF VIDEOS. WHEN OUR COURT RULED THAT THAT WAS UNJUST, GOVERNOR DAVIS APPEALED IT TO THE SUPREME COURT TO MAKE THEM REMAIN IN PRISON FOR LIFE FOR A MINOR CRIME. THESE POLICIES WE HAVE ON THE DEATH PENALTY, ON THREE STRIKES ARE WRONG.

SHANDOBIL: OKAY. AND THE FINAL CHANCE TO REPUTE THAT QUESTION GOES TO MR. UEBERROTH.