This is a rush transcript. This copy may not be in its final form and may be updated.

Dennis Richmond, KTVU: JOINING US ON STAGE NOW IS GOVERNOR DAVIS. GOVERNOR, THANK YOU FOR BEING WITH US.

Gov. Davis: MY PLEASURE.

Richmond: BEFORE GETTING INTO OUR QUESTIONS WITH THE PANELISTS AND SOME OF THE VOTERS, I WANT TO ASK YOU ONE THING.

SENATOR DIANNE FEINSTEIN, AS YOU KNOW, WENT THROUGH A RECALL ELECTION ALMOST 20 YEARS AGO TO THE MONTH AND SHE DESCRIBED IT AS ONE OF THE MOST HORRIBLE, EMOTIONAL EVENTS THAT SHE HAD EVER GONE THROUGH. BEING SUBJECTED TO A RECALL ELECTION SHORTLY AFTER VOTERS PUT HER INTO OFFICE. EMOTIONALLY, HOW ARE YOU HANDLING THIS? HOW DO YOU FEEL ABOUT THIS?

Davis: IT IS NOT AN EASY TIME FOR MY WIFE SHARON OR I AND IT IS NOT FUN SEEING EVERYONE CONDEMN YOU UP AND DOWN THE 24-HOUR NEWS CYCLE.

I KNOW THAT THE PROBLEMS WE DEAL WITH PALE IN COMPARISON TO THE PROBLEMS OF THE PEOPLE THAT I REPRESENT.

I HAVE THEIR MESSAGE. I KNOW THEY ARE ANGRY. THIS HAS BEEN A HUMBLING EXPERIENCE. BUT I KNOW THEY WANT ME TO FIGHT FOR THEIR FUTURE SO I HAVE SPECIFIC THINGS TO GET DONE, INCLUDING REREGULATING ENERGY. WE'LL GET TO THEM. TRUST ME.

Richmond: NOW WE WILL ALSO BE JOINED BY OUR PANEL OF JOURNALISTS WITH

QUESTIONS FOR THE GOVERNOR. LET ME INTRODUCE YOU TO THEM.

THIS IS POLITICAL EDITOR DAN BORENSTEIN. DAN IS WITH

CONTRA COSTA TIMES. PILAR MARRERO, POLITICAL EDITOR OF LA OPINION, THE LARGEST CIRCULATION SPANISH NEWSPAPER IN THE STATE AND JOHN MYERS IS REPRESENTING PUBLIC BROADCAST RADIO STATION KQED FM IN SACRAMENTO.

ALSO ONSTAGE ARE SEVERAL CALIFORNIA VOTERS WHO HAVE SUBMITTED QUESTIONS FOR THE GOVERNOR. WE WILL GET TO THEM ALSO. THEY WILL HAVE THEIR QUESTIONS FOR THE GOVERNOR.

KEEPING WITH TIME CONSTRAINTS, WE'RE GOING TO ASK THAT THE ANSWERS BE LIMITED TO ONE MINUTE. WE'RE GOING TO TRY TO KEEP IT IN THAT TIME FRAME.

Richmond: NOW WE'LL START WITH THIS, GOVERNOR. IN ACKNOWLEDGING THIS UNPRECEDENTED RECALL YOU'VE ADMITTED THAT YOU MADE MISTAKES, AS A MATTER OF FACT AS RECENTLY AS MONDAY AT THE STATE FAIRGROUNDS IN PLEASANTON IN ALAMEDA COUNTY.

YOU SAID, AND I'LL QUOTE YOU AS CLOSELY AS I CAN "IF THE GOOD VOTERS OF CALIFORNIA ALLOW ME TO SERVE OUT MY TERM I WILL DO THINGS DIFFERENTLY AND MAKE CHANGES."

WHAT DO YOU FEEL THAT YOU DID WRONG AND WHAT WILL YOU CHANGE?

Davis: THE BIGGEST THING THAT I WILL CHANGE IS TO STAY CONNECTED TO THE PEOPLE OF THE STATE. WHEN I WAS FIRST ELECTED I HAD TOWN HALL MEETING, I SPOKE WITH PEOPLE AND LEARNED A LOT AND GOT A LOT OF GOOD IDEAS.

GOVERNING SHOULD BE A TWO-WAY STREET. YOU GET WRAPPED UP IN SACRAMENTO, TALKING TO LEGISLATURES WHO ARE IMPORTANT, LOBBYISTS WHO ARE IMPORTANT, CONSTITUENCY GROUPS.

AT THE END OF THE DAY THE PEOPLE PUT YOU THERE IN THE FIRST PLACE. YOU HAAVE TO STAY CONNECTED TO THEM. WHICH IS WHY WE ASKED, AND I'M GLAD THAT YOU AGREED TO HAVE CITIZENS TONIGHT THAT I COULD TALK TO FACE-TO-FACE, ANSWER THEIR QUESTIONS.

LEARN FROM THEM AND THEY CAN HEAR SOME OF THE CONFLICTS PRESSURES THAT I HAVE TO DEAL WITH AS GOVERNOR.

Richmond: NOW, YOU SAID YOU MADE MISTAKES. WHAT ARE YOU SAYING THAT YOU DID WRONG?

Davis: I THINK THAT I WAS TOO SLOW TO ACT ON THE ENERGY CRISIS. THIS IS WHAT WE WERE FACING FACED WITH. PEOPLE OUGHT TO KNOW. EVERYONE TOLD ME TO RAISE CONSUMER RATES EVEN THOUGH THE PROMISE OF DEREGULATION WAS THAT RATES WOULD GO DOWN.

I FELT SOMETHING WAS AMISS, EITHER WITH THE UTILITIES OR ENERGY COMPANIES AND CONSUMERS SHOULD NOT HAVE TO PAY THE FULL LOAD.

EVERYONE ASKED ME TO DO IT. I HESITATED, HESITATED BECAUSE I DID NOT WANT TO DO IT. EVENTUALLY WE RAISED THE RATES 10 TO 20%, NOT THE 400% WE WANTED. WE BUILT 24 PLANTS. PEOPLE CONSERVED MAGNIFICENTLY. OUR LIGHTS DID NOT GO OFF TWO WEEKS AGO, LIKE THEY DID ON THE EAST COAST AND IN LONDON, BECAUSE WE HAVE MADE THE INVESTMENTS AND GENERATED THE CONSERVATION TO PREPARE FOR CALIFORNIA'S FUTURE.

Richmond: WE'LL TURN NOW TO THE JOURNALISTS, FIRST DAN BORENSTEIN, The POLITICAL EDITOR OF THE CONTRA COSTA TIMES NEWSPAPER.

Dennis Borenstein: GOVERNOR YOU RECENTLY SAID "WHAT IS HAPPENING HERE IS PART OF AN ONGOING NATIONAL EFFORT TO STEAL ELECTIONS REPUBLICANS CANNOT WIN." BUT LIEUTENANT GOVERNOR BUSTAMANTE SAYS THAT VOTERS WHO SIGNED THE RECALL PETITION WERE "SENDING A REAL STRONG MESSAGE TO THE PEOPLE IN THE STATE OF CALIFORNIA, ESPECIALLY ITS LEADERSHIP IN SACRAMENTO."

GOVERNOR, WAS THERE A MESSAGE AND, IF SO, WHAT WAS IT?

Davis: THERE IS NO QUESTION THERE WAS A MESSAGE AND THE MESSAGE WAS THAT PEOPLE ARE ANGRY. I UNDERSTAND THEIR LIVES ARE NOT GOING AS WELL AS THEY WERE A COUPLE OF YEARS AGO AND I UNDERSTAND I'M THE BRUNT OF THEIR CONCERN.

BUT I DO BELIEVE THAT AT THE HEART OF THIS, IN THE BEGINNING, WERE A GROUP OF REPUBLICANS THAT WERE UPSET THEY COULD NOT WIN LAST NOVEMBER'S ELECTION. THEY DID TRY TO DO WHAT THEY'VE DONE TO PRESIDENT CLINTON, TO TRY TO IMPEACH HIM IN 1998 AFTER THEY COULD NOT DEFEAT HIM IN '96.

THEY DID IT IN FLORIDA WHERE AL GORE GOT MORE VOTES ANYWAY, IT LOOKED LIKE HE MIGHT WIN THE PRESIDENCY, THEY STOPPED THE VOTE COUNT THERE.

NOW WE WON IN NOVEMBER AND THEY WANTED TO HAVE A DO-OVER, BE LIKE THE OAKLAND RAIDERS SAYING TO TAMPA BAY, WE KNOW THAT YOU BEAT US THE FIRST TIME, BUT WE WANT TO PLAY THE SUPER BOWL AGAIN.

SO THAT EFFORT BY REPUBLICANS GOT THE BALL ROLLING. BUT THEY DID TAP IN TO SOME GENUINE ANGER THAT I RECOGNIZE. THAT IS WHY I'M FIGHTING HARD TO REFORM THE WORKERS' COMPENSATION, IMPROVE STEM CELL RESEARCH AND EXPAND HMO REFORM.

WE HAVE TOUGH LAWS, BUT WE WANT TO EXPAND THEM FURTHER.

Richmond: DAN, A FOLLOW-UP?

>> YES.

Borenstein: YOU CAME INTO OFFICE PROMISING TO GOVERN FROM THE CENTER, GOVERNOR. BUT AFTER THE RECALL CAME YOU STARTED TO DESCRIBE YOURSELF AS A PROGRESSIVE.

WHAT ARE YOU, A CENTRIST OR A PROGRESSIVE? AND WHY HAVE YOU SUDDENLY STARTED TO DESCRIBE YOURSELF AS A PROGRESSIVE?

Davis: I SAID IN MY FIRST ADDRESS THAT I WOULD TAKE A GOOD IDEA FROM WHEREVER IT CAME FROM, THE RIGHT THE CENTER OR THE LEFT AND I'VE MAINTAINED THAT POSTURE FROM THE VERY BEGINNING.

I DO BELIEVE GOVERNMENTS'S ROLE IS TO HELP PEOPLE, TO BE A SAFETY NET. AND I DO BELIEVE THAT MANY OF THE POLICIES THAT I'VE PURSUED FILL THAT OVERALL GOAL. SO I DO NOT FIND ANY INCONSISTENCY. BEING A CENTRIST DOES NOT MEAN THAT YOU TAKE THE MIDDLE LINE ON EVERY ISSUE, IT MEANS WHEN YOU ADD UP WHAT I'VE DONE, TO PROTECTING THE COAST, A STRONG ENVIRONMENTALIST, EXTENDING WOMEN'S BENEFITS, PUBLIC SAFETY, HOMELAND SECURITY, WHEN YOU ADD IT ALL UP, I MAY SAY I'M IN THE CENTER BUT NOT ON EVERYISSUE.

WHY HAS THAT COME INTO YOUR LEXICON, THE WORD PROGRESSIVE?

Davis: I'VE CALLED MYSELF A PROGRESSIVE MOST OF MY CAREER. I THINK THAT THE LABELS MATTER LESS THAN WHAT YOU ACTUALLY DO AND WHO YOU FIGHT FOR AND I'M VERY PROUD, FOR EXAMPLE, TO HAVE WORKED WITH JACKIE SPEIER AND SIGNED THE TOUGHEST PRIVACY LAW IN AMERICA.

NO LONGER STARTING NEXT JULY CAN A BANK TAKE YOUR BANK BALANCE OR YOUR SPENDING PATTERNS AND SELL IT TO ANOTHER COMPANY WHO WILL SOLICIT YOU TO BUY THEIR PRODUCT WITHOUT YOUR EXPRESS PERMISSION. THAT STANDS UP FOR THE CONSUMER. IN THAT CASE, THAT WAS A PROGRESSIVE POSITION.

Richmond: PILAR MORRERO, THE POLITICAL EDITOR OF LA OPINION, YOUR QUESTION FOR THE GOVERNOR?

Morrero: GOVERNOR, WHILE COMMUNITY CLASSROOMS ARE CLOSING, CLASS SIZES ARE INCREASING, YOU PROVIDED A 34% PAY RISE FOR PRISON GUARDS WHOSE UNION GENERATED AGAINST YOUR CAMPAIGN? WHY?

Davis: I KNOW IT IS A CONVENTIONAL CRITICISM AND A GOOD QUESTION. LOOKING AT THE BUDGET, THE BUDGET THIS YEAR HAS $40 BILLION PLUS FOR EDUCATION, K THROUGH 12 AND COMMUNITY COLLEGE, STATE COLLEGE AND UNIVERSITY AND ABOUT $5 BILLION FOR THE PRISONS.

ALL OF THE RAISES GIVEN LAST YEAR ARE BEING RE NEGOTIATED. THE CALIFORNIA HIGHWAY PATROL, WHICH IS GENERALLY SEEN AS THE PREMIERE EMPLOYEE ORGANIZATION IN CALIFORNIA, HAD A 7.5% PAY RAISE. THEY GAVE BACK 5% OF THAT. THEY ONLY HAVE A 2.5% PAY RAISE IN RECENT NEGOTIATIONS AND OTHER UNIONS ARE GOING THROUGH THE PROCESS.

AT THE END OF THE DAY, YOU WILL SEE CONCESSIONS FROM ALL ORGANIZATIONS, INCLUDING THE PRISON GUARDS. MY PASSION IS ON EDUCATION. LET'S NOT FORGET THAT OVER FIVVE YEARS TEST SCORES HAVE GONE UP EACH OF THE FIVE YEARS, SAT SCORES UP THIS YEAR.

I WAS THE FIRST GOVERNOR TO SUBSTANTIALLY INCREASE FUNDING ABOVE WHAT THE LAW REQUIRED, PROVIDING $13 BILLION BEYOND WHAT THE LAW REQUIRED. SO THAT WHAT I -- WHEN I INHERITED THIS JOB, CALIFORNIA RANKED 43RD IN PER CAPITA SPENDING. NOW WE'RE 27TH.

AS I SAY, THE PROOF IS IN THE PUDDING. TEST SCORES ARE UP FIVE YEARS IN A ROW.

Richmond: PILLAR A FOLLOW-UP.

Morrero: IT IS A GOOD THING THAT YOU MENTIONED A EDUCATION, IN RECENT BUDGET TUITION FEES FOR COLLEGES AND UNIVERSITIES WERE RAISED 25, 30%. THIS IS HITTING VERY HARD ON THE WORKING-CLASS AND THE MIDDLE CLASS THAT HAS A TOUGHER TIME PAYING FOR A HIGHER EDUCATION.

HOW DID YOU STAND ALLOWING THAT, CALLING YOURSELF THE EDUCATION GOVERNOR.

Richmond: A VERY GOOD QUESTION. LET ME TELL YOU HOW IT HAPPENED. THE REPUBLICANS TOOK THIS POSITION: THEY WOULD NOT RAISE TAXES AT ALL COST. THEY WOULD RATHER SHOOT THEIR MOTHER THAN INCREASE ANY TAXES.

I SAY THAT FIGURATIVELY. BUT THERE WAS NO CIRCUMSTANCES UNDER WHICH THEY WOULD RACE TAXES, EVEN THOUGH THEY DID IT, $7 BILLION FOR GOVERNOR WILSON.

WHAT DID THAT MEAN?

THE REPUBLICAN BUDGET SAID THEY WANTED TO VIRTUALLY ELIMINATE THE FRESHMAN CLASS AT THE UNIVERSITY OF CALIFORNIA IN 2004, AND REDUCE BY 40% THE ADMISSIONS TO THE CAL STATE SYSTEM. AND INCREASE THE FEES TO COMMUNITY COLLEGES BY $26.

WE WERE ABLE TO FIGHT MOST OF THOSE OFF. BUT THE NET RESULT WERE MORE INCREASES IN FEES THAN I WOULD LIKE.

BUT STILL THERE IS A FRESHMAN CLASS. THE FEES AT THE COMMUNITY COLLEGES WENT UP $18 WHICH IS BY FAR THE LOWEST IN AMERICA. THE NEXT LOWEST IS AT $25.

I REGRET EVERY FEE INCREASE, BELIEVE ME. WHAT THE REPUBLICANS THREATENED WAS FAR WORSE THAN THE ONE I SIGNED. AND THE EDUCATION COMMUNITY WILL SAY NO ONE FOUGHT HARDER THAN I DID.

Richmond: AND THE SACRAMENTO BUREAU CHIEF FOR KQED-FM JOHN MYERS.

Myers: GOVERNOR ONE OF THE MOST CONTROVERSIAL BUDGET DECISIONS THIS YEAR. ONE OF THE MATTERS WAS THE CAR TAX. YOU ARGUED AGAINST RAISING THAT TAX IN THE JANUARY BUDGET BUT THEN INCLUDED THE INCREASE IN YOUR BUDGET PLANS IN MAY. SOME SAY THAT THE DECISION THAT THE CAR TAX SHOULD GO UP WAS A WAY OF AVOIDING BLAME.

ALMOST EVERY REPLACEMENT CANDIDATE, INCLUDING THE LIEUTENANT GOVERNOR BUSTAMANTE SAYS THAT THE TAX INCREASE HURTS THE WORKING FAMILIES DO YOU THINK RACING THE CAR TAX WAS THE RIGHT THING TO DO?

Davis: NO AND I NEVER PROPOSED IT, AS YOU CORRECTLY SAID, JOHN. I OPPOSED EFFORTS TO RAISE IT EARLY ON. BUT THE CAR TAX WAS BROUGHT TO US FROM THE PRIOR ADMINISTRATION.

THE YEAR BEFORE I WAS GOVERNOR, THEY LOWERED THE CAR TAX. THEY DELAYED ITS IMPLEMENTATION UNTIL I WAS GOVERNOR. THE CAR TAX DOES NOT GO TO SACRAMENTO. IT GOES TO WALNUT CREEK, TO SAN FRANCISCO, IT GOES TO SANTA MONICA, IT DOES NOT GO TO CALIFORNIA.

IT GOES TO PAY PRIMARILY FOR FIRE AND POLICE. WHEN WILSON DECIDED THAT HE WANTED TO LOWER IT IN '98, THE MAYORS SAID, WAIT A MINUTE, GOVERNOR, YOU TELL US THAT YOU WILL WRITE A CHECK TO MAKE UP THE DIFFERENCE TO OUR LOCAL CITIES FOR WHAT THE FEES USED TO BE AND NOW WHAT THEY ARE LOWERED TO.

WE KNOW THAT SOME DAY YOU WILL NOT WRITE THE CHECK. YOU HAVE TO GUARANTEE US THAT IF YOU DO NOT WRITE THE CHECK, THE FEES GO UP. SO THE WILSON CAR TAX LOWERED THE FEES BY $12 BILLION. I HAD TO FIND ROOM TO FIND ROOM FOR IT.

BUT IT INCREASED IT WHEN THE STATE COULD NOT WRITE THE CHECK THIS YEAR.

Myers; WITH ALL DUE RESPECT, DO YOU SEE HOW YOUR REJECTION OF THE INCREASE FOLLOWED BY THIS AUTOMATIC INCREASE STRIKES SOME PEOPLE AS TRYING TO HAVE IT BOTH WAYS?

Davis: NO. I PROPOSED $8 BILLION WORTH OF TAXES.I CAN TELL BY YOUR STATEMENT AND DEMEANOR THAT YOU ARE A THOUGHTFUL, RESPONSIBLE PERSON. AND WE'D OBVIOUSLY HAVE YOU WORKING THAN NOT WORKING.

WHAT HAVE WE DONE TO TRY TO IMPROVE THE SITUATION? I INCREASED THE UNEMPLOYMENT INSURANCE CONSIDERABLY AND MADE A -- MADE IT RETROACTIVE TO SEPTEMBER THE 11TH, 2001 WHEN A NUMBER OF PEOPLE LOST THEIR JOBS FOR A DIFFERENT REASON.

THAT ALSO SWEPT IN PEOPLE FROM THE TECHNOLOGY COMMUNITY THAT WERE AFFECTED PRIMARILY BY THE COLLAPSE OF THE DOT.COM BUBBLE.

WE'VE INVESTED A LOT OF MONEY INTO THE BAY AREA. WE HAVE AN INITIATIVE GOING WITH USHF AND BERKELEY ON THAT. I BELIEVE STRONGLY THAT WE SHOULD DISCOURAGE PEOPLE MOVING JOBS OFFSHORE.

AND I SAID THIS YEAR I WOULD SIGN TWO BILLS THAT PENALIZE CORPORATIONS THAT INCORPORATE IN BERMUDA AND THE CARIBBEAN, SAYING THAT WE DO NOT CARE IF YOU INCORPORATE THERE NOW, WE'LL TAX YOU AS IF YOU ARE STILL IN CALIFORNIA.

IF YOU STILL WANT TO INCORPORATE IN THE CARIBBEAN, WE WILL DENY YOU THE OPPORTUNITY TO DO BUSINESS WITH THE STATE, BUILD ROADS, SELL US TEXTBOOKS OR SOFTWARE, YOU CANNOT DO BUSINESS WITH US IF YOU INSIST ON MOVING.

THE SUM TOTAL OF ALL OF THIS MIGHT EXCEED WHAT WE'LL HAVE IN THE COVERS THE FOLLOWING YEAR, IT MEANS PUTTING ASIDE MONEY, POSSIBLY MONEY COMING FROM CAPITAL GAINS RECEIPTS IN THE RESERVE, SPENT ONLY IF THE RESERVES EXCEEDS A CERTAIN LEVEL THEN ONLY ON ONE-TIME PROJECTS.

Richmond: OUR NEXT QUESTION IS FROM TIM RODRIGUEZ OF BERKELEY.

Rodriguez: THANK YOU FOR BEING HERE, GOVERNOR. I'M ONE OF THE EIGHT MILLION PEOPLE YOU SPEAK ABOUT WHO VOTED FOR YOU IN THE LAST ELECTION. I'M CONCERNED THAT I WILL NOT BE ABLE TO DO IT IN THIS ELECTION.

Davis: WE NEED TO TALK THEN.

Rodriguez: YES, SIR. I NEED A REASON TO VOTE FOR YOU, RATHER THAN TO VOTE AGAINST YOUR OPPONENTS. IN MY OPINION YOU'VE PLAYED IT KIND OF SAFE IN YOUR TIME IN OFFICE, WHICH I DO NOT THINK IS GOOD ENOUGH FOR THE STATE.

IT CERTAINLY IS NOT GOOD ENOUGH WHEN WE ARE IN A BUDGET CRISIS. IF EXPERIENCE COUNTS IN THIS ELECTION, AS YOU SAY IT DOES, WHAT EXPERIENCE DID YOU BRING TO THE TABLE IN THE BUDGET SITUATION?

HOW WILL YOU GUARANTEE TO ME THAT IF I VOTE FOR YOU, FOR THE NEW GRAY DAVIS, I WILL NOT GET THE OLD GRAY DAVIS WHEN YOU ARE BACK IN OFFICE?

Davis: BELIEVE ME, THIS HAS BEEN A AWAKENING FOR ME. I KNOW PEOPLE ARE UPSET. AND IT IS NOT FUN HEARING IT DAY IN AND DAY OUT. JUST IMAGINE IF YOU GO THROUGH YOUR WHOLE DAY, TURNING ON THE NEWS, EVERYONE IS BATTERING YOU, CALLING YOU NAMES. IT IS WONDERFUL WIFE AND A STRONG FAITH IN GOD TO SUSTAIN YOURSELF THROUGH THAT.

SO I'M NOT GOING TO RETREAAT FROM THE PROMISES THAT I'VE MADE, WHICH IS I'M GOING TO STAY CONNECTED WITH YOU. AND EVEN IF NOT ONE PRESS PERSON COMES TO A TOWN HALL WE HAVE HERE IN WALNUT GREEK, I'LL HAVE IT.

I HAD THEM WHEN I WAS AN ASSEMBLY MEMBER. NO PRESS SHOWED UP. IT DID NOT MATTER. I GOT GREAT IDEAS.

WHAT DID I DO?

LET ME TAKE THE ENERGY CRISIS. IT IS A MAJOR ISSUE. WITHOUT GOING THROUGH THE DETAILS, CALIFORNIA HAD ITS HANDS TIED WHEN I BECAME GOVERNOR BECAUSE IT HAD TOLD THE UTILITIES SELL YOUR PLANTS TO OTHER PEOPLE. HAVE THE OTHER PEOPLE, WHICH ARE THE ENRONS OF THE WORLD, SELL YOU BACK THE POWER. AND THEN SELL IT TO YOU.

BUT WE SELL IT TO YOU, REDUCE IT 5%.

THE STATE SURRENDERED THE ABILITY TO BE PART OF THE TRANSACTION, BETWEEN THE PEOPLE WHO BOUGHT FROM PG&E AND WHAT THEY SOLD IT FOR. THE PG&E RATES WENT UP 100%. WE HAD TO BUY POWER. WE HAD THE WALL STREET JOURNAL, EDITORIAL BOARDS, EVERYONE SAYING WE WERE DOING THE WRONG THING.

WE FOUGHT TO GET 24 PLANTS ON-LINE. WE FOUGHT FOR CONSERVATION. IT TOOK SOME EXPERIENCE TO GET THROUGH THAT. TO GET THE INCREASEMENT THAT WE NEEDED IN OUR ENERGY INFRASTRUCTURE TO SUSTAIN OUR HIGH-TECHNOLOGY.

THAT IS THE KIND OF EXPERIENCE THAT YOU NEED. WHEN YOU SMELL SOMETHING IS WRONG, CAN YOU NOT QUITE PROVE IT, TWO YEARS LATER THE FEDERAL GOVERNMENT SAYS YOU ARE RIGHT, 40 COMPANIES MANIPULATED CALIFORNIA.

Richmond: OUR NEXT QUESTION IS FROM VIC FROM SACRAMENTO.

Vic: ALSO APPEARING ON THE OCTOBER 7TH BALLOT IS PROPOSITIO 54. AN INITIATIVE BANNING THE STATE FROM COLLECTING DATA ON RACE ETHNICITY AND NATIONAL ORIGIN. I WOULD LIKE TO ASK YOU WHAT YOUR POSITION IS ON PROPOSITION 54.

IF YOU REMAIN GOVERNOR, WHAT WILL YOU DO TO ADDRESS THE DIVISIVENESS PLAGUING CALIFORNIANS AS WE BECOME DIVERSE.

Davis: I'M 100% AGAINST PROPOSITION 54. I THINK IT IS A BAN AGAINST INFORMATION. LET ME GIVE YOU TWO EXAMPLES.

I'M PROUD OF OUR PROGRESS ON EDUCATION. WE HAVE A LONG WAY TO GO. WE ARE CHALLENGING EVERY CHILD. WE KNOW EVERYTHING CHILD CAN BECOME A BETTER, MORE PRODUCTIVE PERSON, EVERY TEACHER AND GOVERNOR CAN DO BETTER.

WE'RE NOT INTERESTED IN THE AVERAGE IMPROVING THE CLASS. WE WANT EVERY ETHNIC GROUP TO IMPROVE. WE COLLECT DATA BASED ON HOW ARE LATINO STUDENTS OR AFRICAN-AMERICAN STUDENTS DOING.

IN THE DAYS WHEN WE HAD MONEY, AND WE COULD REWARD SCHOOLS FOR MEETING IMPROVEMENT GOALS, WE WOULD NOT GIVE THEM MONEY UNLESS EVERY GROUP MET THE IMPROVEMENT GOALS, NOT JUST THE AVERAGE.

IF YOU DO NOT HAVE THAT DATA, YOU DO NOT HAVE THE INFORMATION TO MODIFY THE CURRICULUM. WE TRAIN THE TEACHER. PUT IN REMEDIAL PROGRAMS TO ENSURE THAT LATINO, AFRICAN-AMERICAN OR ASIAN STUDENTS ARE NOT LEFT BEHIND.

THE SECOND REASON IS THAT DRUG COMPANIES DEPEND ON THE KIND OF DATA WE COLLECT TO ENSURE THAT THE DRUGS THEY PROVIDE FOR YOU WORK FOR YOU. I MEAN, YOU WANT A DRUG THAT WORKS FOR YOU, NOT ONE THAT WORKS FOR A DIFFERENT ETHNIC GROUP.

Richmond: I KNOW IT IS SOMETHING THAT YOU WANTED TO DO. BEFORE WE CONCLUDE THIS PORTION OF THE PROGRAM, WE WANT TO OFFER YOU 60 SECONDS OR SO FOR A CLOSING STATEMENT.

Davis: WELL, I WANT TO THANK KTVU FOR HAVING THIS FORUM. I PARTICULARLY WANT TO THANK THE CITIZENS FOR COMING HERE. SOME OF YOU CAME FROM QUITE A DISTANCE. YOU KNOW, DEMOCRACY DEPENDS ON A INFORMED CITIZENRY.

I LEARNED ONE THING IN SACRAMENTO, YOU CAN THOUGH NOT JUST SIT UP THERE WORK 14, 15 HOURS A DAY AND GOVERN WELL. YOU HAVE TO BE IN TOUCH WITH PEOPLE TO KNOW THEIR HOPES, ASPIRATIONS AND FRUSTRATIONS.

I'LL DO MY THIRD TOWN HALL TOMORROW, MY SECOND ONE, THREE CAME UP TO ME AND COMPLAINED ABOUT A GIVEN DEPARTMENT. I WOULD NOT HAVE HEARD THAT. WE'VE MADE CALLS. NOT ONLY DO YOU GET FEED BACK THAT CAN HELP MAKE ADJUSTMENTS POSITIVELY AFFECTING PEOPLE'S LIVES, BUT YOU GET GOOD IDEAS.