This is a rush transcript from "On the Record," June 5, 2012. This copy may not be in its final form and may be updated.
GRETA VAN SUSTEREN, FOX NEWS HOST: This is a "Fox News Alert." Wisconsin Governor Scott Walker is keeping his job! The people in this state have spoken. Governor Scott Walker was with his recall battle so far, with 26 percent of the precincts reporting, Governor Walker has 60 percent of the vote and Milwaukee Mayor Tom Barrett has 40 percent.
Now, this race has also been called for Lieutenant Governor Kleefisch. She just defeated Mahlon Mitchell 59 percent to 41 percent.
So what does this mean for the state of Wisconsin? What does it mean for President Obama? Is this just a local race and just about Governor Walker and the recall, or does it show that union power is diminishing or that Wisconsin is turning red?
It has been an intense and unpredictable couple of weeks and days and finishing with a local -- with a win for Governor Walker. Now, the battle began when Governor Walker proposed a law stripping public unions, but not police and firefighters, of their collective bargaining rights.
You cannot forget those boisterous, passionate protests in the Wisconsin state Capitol in Madison. And now it's here, and we are live in Waukesha, Wisconsin, at Governor Walker's campaign headquarters. We are also live in Milwaukee at Mayor Barrett's campaign headquarters.
Now, we have a jam-packed show for you tonight, so don't go away. RNC chair Reince Priebus, Louisiana governor Bobby Jindal, Wisconsin state assembly minority leader Peter Barca.
But first, former Alaska governor Sarah Palin. Good evening, Governor.
SARAH PALIN, FOX NEWS CONTRIBUTOR/FORMER ALASKA GOVERNOR: Hey, Greta. How are you, there?
VAN SUSTEREN: I'm very well. And it's been a cliffhanger all day. Nobody knew today whether it was going to be Mayor Barrett or the new governor or Governor Walker was going to retain his seat.
So your thoughts on tonight's news that Governor Walker is the winner?
PALIN: It is such good and encouraging news, Greta. It's good for the entire country because people are going to recognize through Governor Walker's efforts that austerity measures, responsible austerity measures of reining in government growth really will help our nation as a whole with the economic woes that we face.
This is positive news. And I think that Wisconsin is living up to its state motto, that providential motto of forward. They're moving forward. They're going to help lead the charge for the rest of the country, reining in government growth, allowing the private sector to be the ones to create jobs.
VAN SUSTEREN: All right, so tonight, Governor Walker celebrates. Tomorrow, though, he goes back to representing all the people in Wisconsin, including all those union members, all those Democrats who campaigned very fiercely against him and for their candidate.
So tell me, you've been in this -- you've been in the chair. Tell me, what does Governor Walker do tomorrow to begin to sort of reconcile or heal those deep wounds? They're very deep in this state.
PALIN: He keeps on keeping on. He keeps showing through facts, through stats, through the numbers that they don't lie, that removing deficit spending and allowing the deficit to turn into a surplus, allowing the government to rein itself in via legislative and policy measures so that the private sector can grow. Those numbers don't lie. And he needs to reminding the public of that.
He also maybe -- maybe not him, but somebody could encourage our good union brothers and sisters there in Wisconsin -- and I say it as a former IBEW sister and my husband as a steelworker and IBEW brother -- that maybe it's the union leadership there, those thugs who wanted to deceive their members into believing that growing government was the answer.
Well, perhaps it's those union leaders that need to be recalled and replaced with those who understand what perhaps a union role could be in state government, not a selfish role, not a role that allows government to continue to grow and create an insolvent situation for a state.
VAN SUSTEREN: You know, it's interesting. We've spoken to him before the -- you know, last year during the protests, and we've spoken to the governor a number of times since. And I asked him, you know, what he would have done differently. And while he doesn't -- he doesn't back off his policies, he says that he wished he had been perhaps better communicating his message so that there would not be this deep divide.
Is that -- is -- do you agree that there's a better way or that he could have delivered his message better so that perhaps he could have avoided maybe this recall vote?
PALIN: I think that everything that Wisconsin has gone through in the last couple of years, Greta, with the lawmakers skipping town, not doing their job and hiding out in another state, the Democrats, because they didn't want to face what Governor Walker was proposing, the supreme court make-up being proposed to change with Prosser's election there, and now with this recall election -- I think Wisconsin voters are sick and tired of the division that's been caused by the radical left, again, saying that it's big government growth that's going to be the answer to economic challenges.
And I think that the people there will come together and they'll continue now to lead the country in these measures that are just common sense. It's economics 101. You know, you live within your means. You're fiscally responsible. And that's how you will become economically successful in a state, in a business, in our nation.
I think, naturally, this unity is going to happen under this good governor and lieutenant governor's watch.
VAN SUSTEREN: I can hear the crowd roaring, and I can see it on the screen. I can also hear it behind me because we're right outside his headquarters, very happy Governor Walker supporters here in Waukesha.
Governor, it's sort of interesting. In 2008, President Obama won by 14 points in this state, a very decisive victory, which you know better than anybody else, having been part of the ticket. I'm curious, though, whether or not the Democrats here are a little bit bitter that President Obama didn't help Mayor Barrett here. He had a chance last week when he was in Minneapolis doing three fund-raisers. He flew over Wisconsin to Illinois to do three fund-raisers.
There were many months leading up until now he was a no-show. He's actually -- he's shown very little interest in this race, or perhaps he thought that it was such a hot potato that he didn't want to be connected to t. And I'm curious what you think the Democrats are thinking about the president's no-show.
PALIN: I think that the Democrats there understand that the president's no-show represents the fact that Obama's goose is cooked as more and more Americans realize that what Wisconsin has just manifested via this vote, embracing austerity and fiscal responsibility, is the complete opposite of what President Obama and the White House represents today.
They want to grow government. They want to take more away from the private sector. They want to quash that entrepreneurial spirit and resource development opportunities from America, so that a centralized, growing government will take the private sector's place.
Well, Wisconsin wasn't going to put up with that. The rest of the nation won't put up with that. So Obama did have to distance himself from the solutions that Walker and Kleefisch and their administration represented. He had to stay away.
VAN SUSTEREN: And I should notify the viewers we're standing by, waiting for Governor Walker. He'll be out soon. He's inside the building, obviously, very happy with the news that broke just a short time ago that he has won this election. So we're going to stand by and take his speech as soon as he hits the podium.
Governor, one thing that did happen in this state, though, is President Obama didn't appear here, but President Bill Clinton did, still a big favorite among Democrats. He was here trying to -- he was campaigning for the mayor on Friday.
Did his presence here show up President Obama? Or do you think President Obama sent him and the Democrats understand that this is politics and it probably wouldn't be good for the president to be connected to a losing race?
PALIN: You know what I think what a lot of us took away from President Clinton's message there was, again, that fiscal responsibility and some austerity measures are the solution. President Clinton reminded people that he, with the help of at the time Speaker Gingrich, and their efforts to rein in government growth and balance the budget -- some austerity measures -- that that allowed deficit spending to be reined in on a national level.
So President Clinton recognized what the solutions are. And he had a very diplomatic, kind of crafty, nice way of telling the public that what he and Speaker Gingrich and the Republican majority in Congress did in those years that he was president was actually helpful for the nation's economy, versus what -- what the recall activists were trying to prove in this Wisconsin recall effort.
VAN SUSTEREN: You know, it always seems when something happens that it's the message that's going to last forever. But November is actually six months off, or five months. You do the math. And a lot can happen. Sort of hard to tell whether this is just a burst of energy for the Republican Party here in this state and Governor Walker, or whether it'll be long-standing up until November.
But lingering between now and November is the Supreme Court decision on health care. It's going to go one of two ways, either the president's way or not his way. And so if you have a reflection, if the president loses health care in the Supreme Court and has this to deal with, what does that mean? And if the president wins health care, and yet he loses tonight?
PALIN: I believe that the president will lose the health care battle in the Supreme Court. And obviously, he and his message, his mission, has lost here in Wisconsin, which is kind of a microcosm of the rest of America. So things aren't looking real good for President Obama.
But Greta, I think it's important that not just hard-core Republicans but good Blue Dog Democrats, Reagan Democrats, independents understand that, really, on that federal level, when it comes to that presidential election, we really just need to apply common sense, not allow partisanship to get in the way of just electing people who will do what's right for the people and who understand what America's foundation is all about, and that is about reward for work ethic and resource development. It is about the private sector's growth and electing someone who represents that.
Obviously, President Obama doesn't represent that. He represents the complete opposite of that. And the numbers don't lie. His joblessness numbers represent that. People on food stamps, the numbers there represent that. The debt that's growing $4 billion a day under Obama represents that.