CNN "Newsroom" - Interview with Bill Cassidy and Bob Menendez

Interview

BREAK IN TRANSCRIPT

Welcome back. State leaders of both parties, mind you, are sounding the alarm over budget concerns as this crisis continues. In Louisiana, for example, that state expects to see a $1 billion shortfall -- that's a big deal at the state level -- but it's not the only state battling to fund critical resources.

Republican Senator Bill Cassidy and Democratic Senator Bob Menendez are teaming up on legislation to help provide aid to states and local communities, and they join me together now. Senators, good to have you both on this morning, good to have you on together.

If I could begin with you, Senator Cassidy. A short time ago, I had a state governor, of Kentucky, call this a matter of survival for states, whether red or blue. I wonder if that is a message you're finding that is getting through. You'll remember, early on, Mitch McConnell was suggesting that states could take the route of bankruptcy to solve this problem. But is it getting through to the Senate leadership here under the president?

SEN. BILL CASSIDY (R-LA): I think is is. Everybody realizes this is about economic survival. If you're having to lay off essential government workers -- think teachers, firefighters, police officers -- then if you lay them off, our businesses cannot reopen, our children will not be re-educated.

And right now, those states and cities have had their tax base collapse because they complied with the federal government's request to shut down business. We have to support our municipalities, our police officers like we're supporting our employers and our families.

SCIUTTO: Senator Menendez, maybe you could explain to folks at home how close is that crisis point for some states? I know some states, they've already instituted hiring freezes but there's also talk of layoffs. I mean, how urgent is this issue for states right now?

SEN. BOB MENENDEZ (D-NJ): Well, it's already manifested itself, Jim. The Bureau of Labor Statistics cites that in April, one million public employees -- police, firefighters, paramedics and others -- have been laid off by states and municipalities.

The alarm is sounding in my home state of New Jersey and others that have balanced budget provisions in the state constitution, they can't do what seems to happen in Washington, which is to go ahead, spend money that isn't balanced. And so -- and their state budgets are due.

So the reality is, is that it would be the height of irony -- and a horrible one too -- that those who we've need the most -- police, firefighters, paramedics, hospital employees, public health institutions -- would be the ones who would be fired as a result of the economic distress that the virus created (ph).

So that's why I'm so thrilled to be joined with Bill Cassidy and other colleagues on both the Republican and Democratic side to support this $500 billion for states and municipalities.

SCIUTTO: I think folks at home, probably happy to see the two of you together on their screens this morning.

In the midst of this, Senator Cassidy, the president has been tweeting, this morning, about taking or holding money up from states -- he mentions Michigan in particular regarding mail-in ballot applications being sent out; he's also targeted Nevada -- is that acceptable, for the president to be making those threats when states -- whether red or blue -- gain, we should make that point -- are facing real budget issues now, responding to this crisis?

CASSIDY: You know, I can't speak for the president, I haven't seen the tweets. I think I can speak for Bob. We have put our heads down, blinders on: How do we go through? Do -- for us to get to a place where we have a bipartisan bill, which is being put in both the House and the Senate on a bipartisan basis, has taken a heck of a lot.

[10:45:18]

And I'll give my tip of the hat to Bob and his team for working with us to address issues we had. And to my own staff, for issues they had.

If we do our job, if we bring a bipartisan, bicameral bill forward that meets the needs of cities and states and our entire economy, I think the president will sign it. And we are doing our job now to make sure we also get that support. I can only speak for myself. We do our job, good things happen.

SCIUTTO: Senator Menendez, do you share that hope there? I mean, do you take these threats from the White House seriously?

MENENDEZ: Look, I appreciate having work with Senator Cassidy and others -- Senator Hyde-Smith of Mississippi and Senator Collins of Maine, Senator Manchin of West Virginia, my own colleague Cory Booker -- to come together.

Moody's just put out -- I think the president will realize this, as will some of our colleagues who have not yet fully seen the light -- Moody's just put out that Arizona and Ohio are facing a fiscal shock of 20 percent of their entire budget. West Virginia, 40 percent.

SCIUTTO: Yes.

MENENDEZ: This isn't a red or blue issue, this is a red, white and blue issue. It's an American issue, and we've come together to portray it as that. It is the right thing to do. Looking forward to later today, we're going to go on the Senate floor, have a colloquy with our colleagues so that we can proselytize more of the members of the Senate to join us.

SCIUTTO: Understood.

As you know, Senator Cassidy, 50 states now are opening or have opened to some degree. And again, that's red or blue states. I don't have to tell you that, you know. Louisiana, doing similar here.

As you watch that happen, are you concerned that some are moving too quickly, particularly since some -- and the CDC guidelines are finally out today, but -- some are reopening before meeting key benchmarks, for instance, like a 14-day decline in cases?

CASSIDY: Yes. There has to be some concern. But I will say that more than a general concern -- now I'm going to speak as a physician -- what has not been clear to me is that there is a strategy on testing. Everybody says we have to test, but I think it's more important that we have a strategy.

You may have a community which has not yet decreased there over 14 days. But if it turns out most of their cases might be in four nursing homes, and that inflates everybody's statistics. So if your strategy of testing doesn't subtract out the nursing homes -- which are really a self-contained isolated event, if you will -- from the overall statistics, then you're deceived by the statistics.

At some point in our federalist system of government, you have to give faith to the local public health units, and that's what I prefer to do.

SCIUTTO: Before we go, Senator Menendez, I'll give you the final word here. We've been talking about testing for months, right? I mean, I've heard it on the air from health officials, from doctors, et cetera, the necessity -- and Senator Cassidy has the advantage of being a senator and a doctor here -- is this country ever going to get to that critical mass on testing here? We've been talking about it for so long.

MENENDEZ: We must. And this is the most critical element, from my point of view, to ultimately creating the consumer confidence that is necessary in our society to truly regain our footing on the economy.

We control all the money in the world at this issue (ph) for small businesses, for states, municipalities. But if at the end of the day, I can't convince the average New Jerseyan that going to the mall, to the restaurant, to the public square, that the risk has been dramatically mitigated in terms of their ability to contract the virus? Then we will not have achieved what we wanted, and we won't get back to a new normal. I think we're all --

SCIUTTO: Right.

MENENDEZ: -- we're committed to that and we're going to keep working at it.

SCIUTTO: You're right. So much of it is a personal issue, a confidence issue.

Senators Cassidy, Menendez, we appreciate the work you're doing. You're welcome on this broadcast any time.

CASSIDY: Thank you, Jim.

MENENDEZ: Thank you.

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