ANOTHER NORM BITES THE DUST•TRUMP SENDS TROOPS TO POLICE WASHINGTON, D.C. TECH COMPANIES CAN NOW SELL A.I.

CHIPS TO CHINA•IF THEY GIVE A CUT TO THE GOVERNMENT.

HAVE WE GONE SOCIALIST?

NEW YORK STATE COULD USE SOME OF THAT MONEY•THE HOLE IN OUR BUDGET IS DEEP AND GETTING DEEPER.

STAY TUNED, "THE IVORY TOWER" IS NEXT.

♪ ♪ ♪ ♪ GOOD EVENING.

WELCOME TO IVORY TOWER.

I'M DAVID CHANATRY, FROM UTICA UNIVERSITY.

I'M JOINED THIS WEEK BY TARA ROSS FROM ONONDAGA COMMUNITY COLLEE, ANIRBAN ACHARYA FROM LEMOYNE COLLEGE, BEN BAUGHMAN FROM GANNON UNIVERSITY AND RICK FENNER FROM UTICA UNIVERSITY.

THIS WEEK WE'VE SEEN SOMETHING UNUSUAL BUT NOT UNPRECEDENTED IN AMERICA THE USE OF THE MILITARY IN LAW ENFORCEMENT.

SAYING WASHINGTON, DC IS PLAGUED BY ROVING MOBS AND BLOODTHIRSTY CRIMINALS, PRESIDENT TRUMP TOOK CONTROL OF THE DC POLICE AND IS SENDING 800 NATIONAL GUARD TROOPS AND OTHER FEDERAL AGENTS TO HELP.

HE SAID OTHER BIG CITIES COULD BE NEXT.

WASHINGTON'S MAYOR SAID VIOLENT CRIME IN THE DISTRICT IS ACTUALLY AT A 30-YEAR LOW.

BEN.

SHOULD THE MILITARY BE USED IN LAW ENFORCEMENT?

>> TYPICALLY MY RESPONSE HAS BEEN EVERY TIME WE'VE TALKED ABOUT THIS ON THE SHOW IS NO.

MILITARY TYPICALLY IS NOT THE WAY TO GO.

IN THIS UNIQUE CASE, WITH IT BEING COORDINATED AND THE SHORT AMOUNT OF TIME THAT IS CURRENTLY BEING PLANNED, UNDER THE LAW, THE 30-DAY...

IT IS WORKING AND IT IS EFFECTIVE BECAUSE IT IS A FORCE MULTIPLIER.

IT IS IN LINE WITH THE UNION.

THE POLICE UNION IS SUPPORTIVE OF THIS.

ADDING ADDITIONAL RESOURCES TO THE DEPLETED AGENCY THAT THERE IS.

>> WASHINGTON POLICE DEPARTMENT HAS BEEN DEPLETED SINCE THE PANDEMIC, RIGHT?

THEY NEED MORE PEOPLE?

>> THAT'S CORRECT.

YES.

WITH THE NEGATIVE VIEWS OF THE POLICE, THERE ARE SEVERAL YEARS OF THAT WHERE THEY WERE AGING OUT AND NOT FILLING THE SPOTS AS MUCH.

>> TARA.

>> MY PROBLEM WITH THIS IS THAT THIS IS A TEMPORARY SOLUTION TO A MUCH BIGGER PROBLEM.

YOU KNOW, YOU CAN'T SIMPLY GO AROUND WASHINGTON D.C., CUTTING JOBS LIKE THE PRESIDENT HAS DONE, AND THOSE JOBS HAVE RIPPLE EFFECTS ON OTHER JOBS.

AND THEN WANT TO COMPLAIN ABOUT HOMELESSNESS, WANT TO COMPLAIN ABOUT THE SO CALLED ROVING GANGS THAT ARE ROVING AROUND WASHINGTON D.C., WHEN YOU DO HAVE A NUMBER OF TEENAGERS, YOU DON'T HAVE PROGRAMS OR JOBS AVAILABLE TO SOME OF THOSE TEENAGERS, AND THEN SAY OH, THIS IS THE REASON THAT TO THERE IS SO MUCH CRIME IN D.C.

WHEN, AS YOU POINTED OUT, CRIME IS DOWN.

SO THIS REALLY ISN'T A REAL SOLUTION.

THIS IS JUST SIMPLY SOMETHING TO DEFLECT FROM OTHER, MORE IMPORTANT ISSUES IN THE GOVERNMENT.

>> WELL, HE HAS WANTED OR CERTAINLY SHOWN A TENDENCY TO WANT TO USE MILITARY IN POLICING SITUATIONS.

>> HE SENT THE NATIONAL GUARD TO LOS ANGELES, YOU KNOW, HE HAS HAD THEM HELP OUT WITH IMMIGRATION.

THIS IS VERY CONSISTENT WITH WHAT TRUMP HAS DONE WHICH IS FIRST PAINT A VERY INACCURATE PICTURE WITH WHAT IS GOING ON, WITH RESPECT IN THIS CASE, THE LEVEL OF CRIME, AND THEN GO AND DO SOME UNPRECEDENTED OR VERY UNUSUAL ACTION.

INCLUDE STRETCHING THE DEFINITION OF TERMS LIKE REBELLION OR INVASION AND THINGS LIKE THIS.

IT'S A PAGE OUT OF THE AUTHORITARIAN REGIME PLAYBOOK.

>> HE CAMPAIGNED ON DOING THINGS LIKE THIS.

SO ISN'T HE JUST DELIVERING ON WHAT HE ADVERTISED?

>> OF COURSE, REPUBLICANS GENERALLY DO CAMPAIGN ON LAW AND ORDER AND FIGHTING BEING TOUGH ON CRIME.

DEMOCRATS HAVE ALSO DONE THE SAME THING.

BUT A COUPLE OF THINGS ARE UNPRECEDENTED HERE, RIGHT?

SO HE IS INVOKING SECTION 740 TO COMPLETELY TAKE OVER THE POLICE DEPARTMENT OF THE METROPOLITAN POLICE IN D.C., AND OF COURSE HE CAN KEEP IT FOR 30 DAYS AND HE IS FLIRTING WITH THE IDEA OF HOW CAN I EXTEND IT BEYOND THIS, RIGHT?

SO I JUST WANT TO SAY THIS IS VERY CYNICAL.

I THINK ONE PART OF IT IS TO DEFLECT ATTENTION FROM HAD THE E WORD, EPSTEIN WORD.

AND THE OTHER THINGS, RIGHT.

IF YOU LOOK AT, FOR EXAMPLE, THE PRINCETON HISTORY PROFESSOR, BALTIMORE.

WHAT ARE THESE PLACES?

CHICAGO.

THESE PLACES ARE PRIMARILY PLACES WHERE THERE ARE A LARGE NUMBER OF NON-WHITE POPULATIONS.

DEMOCRATS HAVE DO IT, REPUBLICANS HAVE DONE IT.

HE TAKES IT TO A NEW LEVEL.

AND THE LAST THING I WOULD SAY IS THIS ANGER OR ANGLE TOWARD HOMELESSNESS ANYBODY CAN FACE.

WHAT ARE YOU GOING TO DO?

THROW THEM OUT?

WHERE?

THERE IS SOMEWHERE THEY HAVE TO GO.

IF YOU LISTEN TO SOCIOLOGISTS AND STUFF, THESE KINDS OF THINGS, THESE KINDS OF THINGS DON'T MATTER.

I THINK THIS IS SHOW BIZ.

HE WANTS TO SHOW HIS POWER AND FALLS WITHIN THE LARGER DISCOURSE OF RACIALIZING VITRIOL TOWARDS NON-WHITE URBAN SPACES.

>> I JUST WANT TO POINT OUT THAT WHAT THE NEWS KEEPS POINTING TO WITH THIS IS ESTIMATED CRIME.

SINCE THE END OF 2020, D.C. IS ONE OF MANY CITIES, ABOUT A THIRD OF THE UNITED STATES CITIES, THAT DOES NOT REPORT TO THE FBI ANYMORE.

WE HAVE SWITCHED TO A THING CALLED NIBRS AND IN THAT PROCESS, THE CITIES THAT HAVE NOT REPORTED TO THE FBI AND THE UNIFORM CRIME REPORTING STATISTICS, THEY ESTIMATE THE CRIME.

SO THE ESTIMATED CRIME HAS GONE DOWN RECENTLY.

>> ALL CRIME IS ESTIMATE... >> WE KNOW IF SOMEONE IS MURDERED, WE KNOW THEY'RE MURDERED, RIGHT?

THE MURDER RATE HAS FALLEN DRASTICALLY.

>> AND YOU KNOW, ROCHESTER INSTITUTE OF TECHNOLOGY HAS THIS REPORT, I HAVE IT IN FRONT OF ME.

30% DROP IN HOMICIDE RATE IN WASHINGTON D.C.

BETWEEN 23 AND 24.

YOU KNOW, ROCHESTER, IN FACT,... >> THE OTHER THING WE NEED TO GET IN HERE IS THAT DONALD TRUMP KEEPS ARGUING THAT THE FEDERAL GOVERNMENT SHOULD BE DOING LESS AND WE SHOULD BE GIVING MORE CONTROL TO LOCAL GOVERNMENTS.

L.A. DID NOT ASK FOR HIM TO SEND NATIONAL GUARD.

NEITHER DID D.C. TO TRUMP, LOCAL CONTROL IS FINE WHETHER THEY DO THINGS THAT HE WANTS THEM TO DO.

IF NOT, THEN HE IS COMING IN FULL BORE.

REMEMBER WHEN NEW YORK CITY DECIDED TO PUT INTO PLACE CONGESTION PRICING AND TRUMP ALL OF A SUDDEN DECIDED THAT WASN'T RIGHT.

SO THIS WHOLE TALK ABOUT LOCAL CONTROL REALLY IS... >> I THINK THIS IS A GOOD QUESTION HERE, WHETHER TRUMP ACTUALLY BELIEVES IN FEDERALISM.

>> HE BELIEVES IN WHATEVER HE WANTS TO DO.

>> EXECUTIVE CONTROL IS MOST IMPORTANT THING THAT THIS PRESIDENCY IS ABOUT EXPANDING EXECUTIVE CONTROL.

>> I WOULD ABSOLUTELY AGREE WITH THAT.

IT'S WHAT HE NEEDS TO SAY AND BELIEVE TO ACHIEVE WHATEVER HE WANTS TO ACHIEVE IN THAT MOMENT.

>> OKAY, NOW, WE TALKED ABOUT CRIME, MURDER RATE FALLING, CRIME RATE FALLING, YOU ARE SAYING ESTIMATED IN MANY CASES.

IF YOU ARE TRYING TO SAY CRIME RATE IS DOWN, HOW DO YOU TALK ABOUT THAT WITHOUT COMING OFF LIKE YOU ARE DISMISSING PEOPLE'S CONCERNS ABOUT CRIME BECAUSE THERE IS CRIME.

THAT'S REAL.

HOW DO YOU APPROACH THAT?

>> AND THAT'S THE TRICKY THING BECAUSE EACH ONE OF THOSE NUMBERS, ESPECIALLY WHEN THEY'RE NOT ESTIMATED, IT REPRESENTS A HUMAN BEING, A HUMAN LIFE THAT HAS BEEN LOST.

THAT'S KEY WITH THIS.

WE CAN GET WRAPPED UP WITH WHAT WE THINK TRUMP IS DOING AND EVERYTHING ELSE.

I AM A CYNICAL PERSON AND, AGAIN, THE TIMING IS PERFECT.

IT SURE DOES SEEM LIKE WAG THE DOG.

>> ANOTHER UNUSUAL EXECUTIVE ACTION THIS WEEK-TRUMP ALLOWING TWO TECH COMPANIES TO SELL ADVANCED CHIPS TO CHINA, WITH THE U.S. TREASURY TAKING A CUT.

ENVIDIA AND ADVANCED MICRO DESIGN RECEIVED EXPORT LICENSES TO SELL THE CHIPS USES IN ARTIFICIAL INTELLIGENCE, BUT THEY MUST PAY THE U.S. 15% OF THE PRICE.

PREVIOUSLY, SALES OF THESE CHIPS TO CHINA WERE BANNED BECAUSE OF NATIONAL SECURITY CONCERNS.

SO, THERE ARE TWO BIG ISSUES HERE•NATIONAL SECURITY AND GOVERNMENT INVOLVEMENT IN THE ECONOMY.

THE WALL STREET JOURNAL CALLED THE ARRANGEMENT "STATE CAPITALISM WITH AMERICAN CHARACTERISTICS."

RICK WHATEVER HAPPENED TO THE IDEA OF NOT PICKING WINNERS AND LOSERS?

>> WELL, DONALD TRUMP BECAME PRESIDENT AND, YOU KNOW,ON THE ONE HAND, YOU CAN LOOK AT THIS AS MOVING TOWARD SOCIALISM BY THE REPUBLICAN PARTY.

YOU KNOW, J.D.

VANCE SAID THERE IS NO MEANINGFUL DISTINCTION BETWEEN THE PUBLIC AND PRIVATE SECTOR IN THE AMERICAN REGIME.

THAT SOUNDS PRETTY SOCIALIST.

BUT ON THE OTHER HAND, I THINK THE QUOTE THAT REALLY MATTERS WAS TRUMP'S WHEN HE SAID "I OWN THE STORE."

HE SEES HIMSELF AS C.E.O.

OF AMERICA, INC., AND SO, YOU KNOW, WE SEE HIM GETTING INVOLVED IN THE TIKTOK DEAL, THE SALE OF U.S. STEEL.

HE IS OUT THERE MAKING DEALS AS IF HE IS A BUSINESSMAN AND SO I THINK THAT'S WHAT IS DRIVING ALL OF THIS.

>> YEAH, YOU KNOW, I HAVE A SIMILAR TAKE, BUT I MEAN IN A DIFFERENT WAY.

I DON'T THINK THERE IS ANY FREE MARKET IN THE SENSE OF THAT NOT HAVING TO DEPEND ON STATE POWER.

I DO THINK CAPITALISM AND STATE POWER GOES HAND IN HAND AND THEY INTERMESH WITH EACH OTHER.

THEY DIRECT EACH OTHER IN VARIOUS WAYS.

ALL STATES USE SOME KIND OF LEVERAGE TO DRIVE THEIR CAPITALIST ENTERPRISE AND YOU CAN SEE THIS WITHIN THAT LONG RANGE OF TENDENCIES.

THERE ARE VARIETIES OF CAPITALISM TO QUOTE A VERY IMPORTANT WORK.

YOU KNOW, AND HERE I DO THINK THAT BANNING THE CHIPS FROM CHINA, IT CLEARLY DIDN'T WORK.

WE BANNED THE CHIPS FOR CHINA AND THEN CHINA CREATED DEEP SEAT AND COMPLETELY FLABBERGASTED EVERYONE WITH ITS VERY WONDERFUL LARGE LANGUAGE MODEL, WITH GOOD THINKING CAPABILITIES, SOMETIMES EVEN BETTER THAN CHATGPT.

SO IF THIS DOESN'T WORK, I THINK TRUMP'S APPROACH IS PRAGMATIC, RIGHT?

THAT, YOU KNOW, YOU TAKE A 15% CUT OF ALL THE CHIPS.

THAT INCREASES U.S. TREASURY AND I'M NOT AGAINST THIS AT ALL.

>> YOU SURPRISE ME.

>> I DO THINK THIS IDEA THAT CAPITALISM IS SOMEHOW A KIND OF INSULATED SPHERE OF ITS OWN AND SURVIVES ON ITS OWN AND STATE MEDDLES IN IT.

THAT'S A COMPLETELY WRONG CHARACTERIZATION OF WHAT STATE AND CAPITALISM IS.

THEY WORK HAND IN HAND HAVE ALWAYS WORKED HAND IN HAND IN HUMAN HISTORY, THERE IS A SCALE OF HOW MUCH OR SHAPE CAPITALISM OR NOT.

IT WAS NEVER THIS KIND OF HERMETIC SEALED SPACES OF THE STATE HERE AND CAPITALISM HERE.

DOESN'T WORK THAT WAY.

>> OKAY, BUT THAT HER MATICALLY SEALED BUT THIS IS GOING BEYOND...

THIS IS BREAKING WHATEVER-- >> THERE ARE MASSIVE SUBSIDIES THAT ARE GIVEN TO FORMERS.

INDIA DOES THIS, FRANCE DOES THIS, NETHERLANDS DOES THIS.

>> BUT AN EXPORT TAX IS ILLEGAL IN THE UNITED STATES FIRST OF ALL.

SECOND OF ALL, THE TAKES POWER AWAY FROM CONGRESS.

I SAID THE I OWN THE STORE QUOTE.

AFTER THAT HE SAYS I SET THE PRICES.

SO INSTEAD OF A DECENTRALIZED MARKET, YOU ARE GOING TO LET ONE PERSON, A DICTATOR SET THE TERMS OF TRADE AND MAKE THESE COMPANIES, REALLY EXTORT MONEY FROM THEM IN ORDER TO GET THE LICENSE.

>> WHEN YOU SAID A DICTATOR, I COULD SEE BEN REACTING.

>> WE ELECTED HIM.

HE IS NOT A DICTATOR.

I KNOW PEOPLE HATE TRUMP.

THERE IS A PORTION OF OUR SOCIETY THAT HATE TRUMP.

I GET IT BUT THERE IS A BIGGER STRATEGIC PLAN HERE.

WITH I AGREE WITH ANIRBAN.

MARK THAT ON YOUR CALENDAR.

>> THANK YOU THANK YOU.

THAT'S RARE.

>> BECAUSE THE FOOTPRINT IN CHINA WITH AMERICA HAS BEEN DIMINISHED.

THE NECESSITY IS THE MOTHER OF INVENTION, AND WE SAW THAT.

WE SAW THAT.

SO BY TAKING THAT MOTIVATION COMPONENT AWAY, OR AT LEAST DIMINISHING IT BY GETTING A FOOTPRINT BACK IN THE A.I.

ECOSYSTEM IN CHINA, IS REALLY WHERE IT'S AT AND WE ARE NOT SENDING OUR BEST CHIPS.

>> SO YOU ARE SAYING IT'S OKAY TO SEND THE CHIPS TO SELL THE CHIPS BUT WHAT ABOUT TAKING 15% OF THE CUT?

>> THAT'S THE PROBLEM.

IT CERTAINLY SOUNDS GOOD.

WE ARE ADDING, YOU KNOW, TWO, YOU KNOW, OUR COFFERS AND, YOU KNOW, THIS WILL HELP THE COUNTRY OVERALL.

BUT WHY WAS IT 15% DECIDED UPON IN WHERE IS THAT MONEY SPECIFICALLY GOING TO BE GOING?

WILL IT BE FUNNELED BACK INTO TECHNOLOGICAL DEVELOPMENT, PROGRAMS TO TRAIN AMERICANS BECAUSE ONE OF THE ARGUMENTS FOR THIS DEAL IS THAT THIS ALLOWS U.S. COMPANIES TO HAVE ACCESS TO SOME OF THE BEST AND BRIGHTEST IN TERMS OF A.I.

DEVELOPMENT AND TECHNOLOGY.

WELL, WILL THAT MONEY BE FUNNELED BACK INTO PROGRAMS TO TRAIN AMERICANS TO BE THE BEST AND THE BRIGHTEST?

AND ALL OF THAT IS VERY NEBULOUS AND VERY UNCLEAR.

AND, OKAY, IT'S 15% TO PLAY RIGHT NOW.

IS IT 20% TO PLAY WITH THE NEXT TWO COMPANIES?

DOES IT BECOME 30%?

WHERE ARE THE PARAMETERS FOR ALL OF THIS?

>> THIS IS INTERESTING.

THE STORY WHEN HE ASKED THE C.E.O.

HE SAID 20% FIRST.

THE C.E.O.

CAME BACK WITH A COUNTER OFFER.

CAN YOU DO 15.

HE SAID OKAY LET'S DO 15.

THE BROADER THING, THE COMPANIES AGREE.

THEY'RE NOT SAYING THEY'RE GOING LOSE OUT, SO... >> THIS IS THE TYPE OF CRONY CAPITALISM THAT YOU HAVE SMALL NUMBER OF PEOPLE WHO ARE MAKING HUGE DECISIONS, WHICH ARE GOING TO IMPACT THE CHOICES AND THE PRICES PAID BY MILLIONS AND MILLIONS OF AMERICANS.

>> I COMPLETELY AGREE WITH YOU ON THAT.

THE POWER OF SETTING THIS STUFF SHOULD OBJECT CONGRESS BUT WE HAVE BE DELEGATING THIS STUFF TO THE PRESIDENT FOR A LONG TIME AND WE ARE UNABLE TO TAKE IT BACK TO THE CONGRESSIONAL BODY.

>> AND CONGRESSIONAL IS NOT WILLING TO STAND UP FOR WHAT IT... >> TARA USED THE PHRASE "TO PLAY" SO THAT RAISES THE IDEA OF PAY TO PLAY HERE.

AND EXCUSE ME.

PARDON ME.

AND DOES A DEAL LIKE THIS OPEN THE DOOR TO CORRUPTION, WHAT DO YOU THINK?

>> TO CORRUPTION?

NO.

WE MAY NOT LIKE WHAT IS HAPPENING IN D.C. THAT'S WHY YOU VOTE.

THE MID TERMS ARE COMING UP.

VOTE.

ABSOLUTELY VOTE.

BUT THIS DOES REPRESENT A MARKET-BASED COMPETITION THAT TOOK PLACE.

THAT IS WHAT WAS REPORTED THAT TRUMP SAID 20.

THEY CAME BACK WITH 15.

NOW HE IS USING THE LOOPHOLE OF IT NOT BEING ILLEGAL BY IT BEING A VOLUNTARY AGREEMENT THAT CAME OUT OF THIS.

>> CLEARLY IT'S NOT A VOLUNTARY AGREEMENT SO THAT GETS ME BACK TO THE CORRUPTION POINT.

>> THAT GOES TO-- NOT SO MUCH CORRUPTION BUT WHO IS GOING TO ENFORCE THAT PORTION OF THE CONSTITUTION?

THAT'S THE REAL QUESTION; THAT WE ARE IN UNCHARTERED TERRITORY THAT NEEDS TO BE ADDRESSED SOONER RATHER THAN LATER.

>> THE DEAL, DESPITE GETTING SOME FAVORABLE RESPONSES HAS BEEN PANNED BY-- THE WALL STREET JOURNAL, THE NATIONAL REVIEW, THEY'VE COME OUT STRONGLY AGAINST THIS.

>> THIS IS NOT REPUBLICAN.

THIS IS NOT CONSERVATIVE.

THIS IS, YOU KNOW... >> DO WE FEAR THERE MIGHT BE SOME INCENTIVES FOR CORRUPTION ALONG THE LINE BUT WE ARE YET TO SEE IT.

IT HAS NOT STARTED YET.

WE'LL SEE HOW MUCH MONEY COMES IN OVER THE YEARS.

>> ESTIMATED A BILLION A QUARTER.

NOW WHERE THAT IS GOING TO GO.

>> A BILLION A QUARTER IN OUR ECONOMY IS CHICKEN FEED.

>> AND BACK TO RICK'S POINT.

I MEAN WE HAVE BEEN DOING THINGS A CERTAIN WAY AND WE KEEP GOING DEEPER AND DEEPER IN DEBT.

I'M NOT SAYING THAT THIS IS THE ANSWER.

BUT THINKING LIKE A BUSINESSMAN IS NOT A BAD THING.

>> THE NEW YORK STATE BUDGET IS A MESS.

COMPTROLLER TOM DINAPOLI SAYS THE STATE WILL HAVE A $34 BILLION DOLLAR BUDGET GAP THROUGH FISCAL 2029.

THAT'S $7 BILLION MORE THAN WHEN GOVERNOR HOCHUL RELEASED HER BUDGET EARLY THIS YEAR.

THE BIGGER DEFICIT RESULTS FROM AN INCREASE IN PROJECTED MEDICAID COSTS AND DECREASED REVENUE DUE TO A SLOWING ECONOMY.

DINAPOLI SAID THE RELATIONSHIP BETWEEN FEDERAL AND STATE GOVERNMENTS IS BEING RESTRUCTURED DUE TO THE RECENTLY SIGNED BIG BEAUTIFUL BILL.

SO TARA, DO STATES RELY TOO MUCH ON THE FEDS FOR FUNDING•.WHY SHOULDN'T THEY PAY THEIR OWN WAY?

STAND ON THEIR OWN FEET.

>> FIRST OF ALL, YES, THEY RELY TOO MUCH ON THE FEDERAL GOVERNMENT FOR FEDERAL HELP, BUT IN FAIRNESS TO THE STATES, THAT'S HOW THE FEDERAL GOVERNMENT, OVER AT LEAST, I WOULD SAY THE LAST FIVE, SIX DECADES, HAS WANTED IT.

BECAUSE WHAT HAS BEEN HAPPENING IS THE NUMBER OF FEDERAL GRANTS AND FEDERAL PROGRAMS HAS STEADILY INCREASED AND AS THE STATES HAVE MANDATED-- AS THE FEDERAL GOVERNMENT HAS MANDATED THAT THE STATES HAVE CERTAIN PROGRAMS, DO CERTAIN THINGS, PROVIDE CERTAIN THUNKS, FOR EXAMPLE, IN EDUCATION, YOU KNOW, OKAY, IN FAIRNESS TO STUDENTS, WE WANT YOU TO PROVIDE FOR STUDENTS WHO HAVE DISABILITIES.

WE WANT TO YOU PROVIDE THESE THINGS FOR STUDENTS.

WELL, THE STATES RIGHTLY SAID OKAY, IF YOU WANT US TO PROVIDE THOSE THINGS, WE ARE NOT DISAGREE, BUT HAVE YOU TO GIVE US SOME MONEY IN ORDER TO DO THAT, YOU KNOW, TO PROVIDE THAT INDIVIDUAL AID OR TO PROVIDE THE SUPPORTIVE CLASSES OR TECHNOLOGY, WHAT HAVE YOU.

AND SO OVER THE YEARS, THAT RELIANCE ON FEDERAL MONEY HAS STEADILY INCREASED, AS THE STATES HAVE RESPONDED TO FEDERAL GRANTS AND MANDATES.

SO, YES, THEY DO RELY TOO HEAVILY ON THE FEDERAL GOVERNMENT.

BUT THAT'S THE WAY THIS SYSTEM HAS BEEN DEVELOPING.

THE PROBLEM HERE IS YOU CAN'T JUST SUDDENLY WALK IN THE DOOR AND SAY OKAY, MEDICAID IS THE BEST EXAMPLE-- OKAY, WE DON'T REICH THAT RELIANCE.

WE HAVE BEEN TELLING YOU WE DON'T LIKE THAT RELY ANSZ SO NOW WE ARE JUST GOING TO CHANGE PROGRAMS, TAKE MONEY BACK OR DUMP IT ON YOU AND SAY YOU HANDLE IT NOW.

AND EVEN WITH THE CHANGES TO MEDICAID, THE FEDERAL GOVERNMENT IS STILL SAYING, OH WE ARE GOING TO CHANGE THE WAY MEDICAID OPERATES AND WE EXPECT YOU TO SPEND YOUR MONEY TO BASICALLY DEVELOP THE NEW PROGRAM THAT WE NEED.

>> EXCEPT HERE'S THE THING.

NEW YORK STATE TAXPAYERS SEND MANY, MANY MORE DOLLARS TO WASHINGTON THAN WASHINGTON SENDS TO NEW YORK.

SO WE ARE ACTUALLY SUBSIDIZING, YOU KNOW, MOST OF THE RED STATES IN THE SOUTH.

SO THAT IF WE WEREN'T DOING THAT, WE PROBABLY WOULDN'T HAVE TO BE AS DEPENDENT UPON FEDERAL DOLLARS.

NOW, ON THE OTHER HAND, YOU KNOW, NEW YORK STATE'S BUDGET IS REALLY IN A MESS, AND IF YOU ADD IN, AS DAVE SAID, AND IF YOU ADD IN THE CUTS THAT ARE GOING TO BE COMING DOWN THE ROAD, THEY HAVE SOME REALLY TOUGH DECISIONS TO BE MADE.

IT APPEARS ONE THING I AM FAIRLY HAPPY TO SEE, THERE ISN'T AN OVERRELIANCE ON INCREASING TAXES.

WE'VE ALREADY EXTENDED THE TEMPORARY TAX INCREASE ON THE WEALTHY THROUGH 2032, I BELIEVE.

BUT SOME INTERESTING DATA...

THE TOP 200 TAXPAYERS IN INCREASING... >> IN NEW YORK CITY.

>> THE TAX BASE IS FALLING BUT I MEAN I AGREE HERE MOSTLY.

THE MEDICAID SPENDING HERE, IN NUMBERS HERE THE MEDICAID SPENDING WILL RISE BY $212 BILLION IN THE $254 BILLION BUDGET AND THAT'S MASSIVE, RIGHT.

THE CONGRESSIONAL BUDGET OFFICE HAS SAID THAT THIS BILL, ON THE WHOLE, WOULD INCREASE MONEY FOR THE TOP 10% OF AMERICANS.

AND REDUCE MONEY FROM THE BOTTOM 10% OF AMERICANS.

>> SO YOU ARE TALKING ABOUT THE FEDERAL BILL NOW.

>> THE FEDERAL BILL.

IF YOU TAKE THAT AS A LARGER ASPECT WHAT IS HAPPENING, WITHIN NEW YORK WE WILL ALSO SEE THE EFFECTS BUT A COUPLE OF GOOD THINGS HERE.

ONE IS THE INCREASE IN SPENDING FOR SCHOOLS.

THAT'S A VERY GOOD THING.

BUT THERE IS AN INFLATION REBATE, I THINK THAT IS PORK AND I THINK THAT CAN GO.

>> BEN?

>> THIS IS A HOT MESS AS RICK POINTED OUT.

ALMOST 40% IS COMING BACK FROM THE FEDERAL GOVERNMENT TO RICK'S POINT.

SO I MEAN, IF THERE ARE SOME HARD DECISIONS THAT HAVE TO BE MADE, BUT GUESS WHAT?

MID TERMS ARE COMING.

I KNOW I ALREADY MENTIONED IT.

SO THOSE HARD DECISIONS PROBABLY WON'T COME BEFORE THE MID TERMS.

>> AND IN TERMS OF THE STATE, ANY QUICK-- BEE ONLY HAVE A FEW SECONDS LEFT.

ANY QUICK ANSWERS?

WHAT DO YOU TELL THE GOVERNOR?

WHAT SHOULD SHE DO.

>> SHE SHOULD GET RID OF THE INFLATION REBATE CHECK THAT IS GOING TO HIGH INCOME FAMILIES AND... >> NOT ONLY GOING TO HIGH INCOME FAMILIAR.

>> IS GOING TO VERY HIGH INCOME FAMILIES IN FACT.

>> NOW WE HAVE TO GO TO OUR AS AND FS, TARA YOUR F. >> TO NEWS NATION HOST LELAND VITTER WHO MADE SEVERAL MISTAKES ON HIS SHOW.

HE INVITED MSNBC COMMENTATOR TO COMMENT ON TRUMP ACTIONS AND THEN BECAME ANGRY WHEN HE COMPARED PRESIDENT TRUMP'S CONCERN FOR D.C. SAFETY TO HIS CURRENT LEVEL OF CONCERN.

FINALLY VITTERT ABRUPTLY ENDED THE INTERVIEW.

SO MUCH FOR NEWS NATION'S PROMO STRAIGHTFORWARD UNBIASED NEWS.

>> ANIRBAN.

>> DEFENSE SECRETARY PETE HEGSETH POSTING AND PRAISE OF A VIDEO OF SELF DEDESCRIBED CHRISTIAN NATIONALIST PASTOR WHOSE CHURCH DOES NOT BELIEVE WOMEN SHOULD BE ALLOWED TO VOTE.

SURELY ONE HAS THEIR FIRST AMENDMENT RIGHTS, BUT THE DEFENSE SECRETARY'S ENDORSEMENT OF THIS MATERIAL GOES AGAINST THE SPIRIT OF U.S. CONSTITUTION THAT SHOULD EMBODY THE SEPARATION OF STATE AND CHURCH.

>> BEN.

>> MY F IS GOING TO A DENY BARK ZOO ASKING THE PUBLIC TO DONATE THEIR UNWANTED SMALL PETS OR HORSES TO FEED TO THEIR PREDATORS.

THIS IS A EUROPEAN ZOO THAT STIRRED UP SOME INTRIGUE AND CONTROVERSY OVER THE LAST COUPLE OF WEEKS, POSTING ON SOCIAL MEDIA ASKING FOR PETS.

NOW FOR MY WIFE'S BENEFIT, THEY SPECIFICALLY SAY NOT DOGS AND CATS, BUT OUTSIDE OF THAT, THEY'RE TAKING ALL ANIMALS.

>> RICK, YOUR F. >> MY F GOES TO JIM ACOSTA, FORMER REPORTER FOR CNN FOR HIS INTERVIEW WITH AN A.I.

GENERATED VICTIM OF THE PARKLAND SCHOOL SHOOTINGS.

ALTHOUGH ENDORSED BY HIS PARENTS WITH THE GOAL OF PROMOTING GUN CONTROL POLICIES, THE INTERVIEW IS DESCRIBED AS DISTASTEFUL, A STUNT GOALISH, UNSETTLING, DISTURBING AND EXPLOITIVE.

NO ARGUMENTS HERE.

>> OKAY.

LET'S GO TO THE AS.

TARA YOUR A.

>> MY A GOES TO EVERYONE INCLUDING FORMER SECRETARY OF STATE HILLARY CLINTON WHO CALLED OUT SECRETARY OF DEFENSE PETE HEGSETH FOR REPOSTING THAT INTERVIEW THAT WAS ON X THAT ANIRBAN MENTIONED.

IN RESPONSE TO THIS, MANY PEOPLE, OF COURSE, WERE VERY ANGRY.

BUT MANY OTHERS ACTUALLY REMINDED US THAT THE MID TERMS ARE COMING UP AND THEY TALKED ABOUT ORGANIZATION AND EDUCATION SO THAT PEOPLE ARE READY FOR THOSE MID TERMS.

>> ANIRBAN.

>> THANK YOU, BEN FOR THAT.

GOES TO THE ORGANIZATION OF WRITERS AGAINST WAR ON GAZA, WHICH IS WHY I-- COALITION OF MEDIA CULTURAL ACADEMIC WORKERS WHO ARE COMMITTED TO THE HORIZON OF LIBERATION OF THE PALS PAL PEOPLE.

IT SHOWS HOW "THE NEW YORK TIMES" CLAIMING TO BE A LIBERAL VANGUARD MANUFACTURED CONSENT FOR WAR EXPLOITATION AND GENERAL SIDE.

>> BEN.

>> MY A IS GOING TO GROUND HOG DAY THE MUSICAL.

MY A IS GOING TO GROUND HOG DAY THE MUSICAL.

NOW IF YOU DIDN'T PICK UP ON THAT JOKE, IT IS ABOUT THIS GUY LIVING THE SAME DIFFICULT DAY OVER AND OVER FEBRUARY 2 AND IT WAS FANTASTIC.

IT WAS AT LUCILLE BALL'S LITTLE THEATER OF JAMES TOWN, NEW YORK.

>> AND RICK, YOUR A.

>> MY A GOES TO A NEW GALLUP POLL THAT SHOWS A RECORD LOW 54% OF ADULTS NOW CONSUME ALCOHOL AND THOSE THAT DO DRINK ARE DRINKING MUCH LESS.

RECENT STUDIES SHOW THAT EVEN MODERATE ALCOHOL CONSUMPTION IS BAD FOR YOUR HEALTH.

IT SEEMS TO BE HAVING AN IMPACT ON PEOPLE'S BEHAVIOR.

>> IS THERE ANY INDICATION AS WHY PEOPLE ARE NOT DRINKING AS MUCH?

>> ON ONE HAND, THERE IS SOME EVIDENCE THAT PEOPLE ARE STATING THAT THEY BELIEVE DRINKING IS BAD FOR YOUR HEALTH.

ON THE LOWER END, THERE IS SOME FEAR THAT FOR YOUNG PEOPLE, IT MAY BE A SWITCH FROM ALCOHOL TO CANNABIS.

>> THANK YOU.

AND THANK YOU FOR JOINING US THIS EVENING.

FOR COMMENTS YOU CAN WRITE TO ADDRESS ON YOUR SCREEN.

IF YOU WOULD LIKE TO VIEW THE SHOW AGAIN YOU CAN VIEW IT ONLINE AT WCNY.ORG.

I'M DAVID CHANATRY, FOR ALL OF US AT IVORY TOWER, HAVE A GOOD NIGHT.