• This is a rush transcript from "On the Record," Nov. 8, 2010. This copy may not be in its final form and may be updated.


    GRETA VAN SUSTEREN, FOX NEWS HOST: Texas Governor Rick Perry comes to Washington. What does he do? He takes the federal government to the wood shed big time. The title of Governor Perry's new book is "Fed up -- Our fight to Save America from Washington." Governor Perry went "On the Record."


    VAN SUSTEREN: Governor, nice to see you, and welcome to our nation's capital.

    GOVERNOR RICK PERRY, R-TEXAS: It is a fun place to visit.

    VAN SUSTEREN: There's a lot going on, a lot of hot topics. I suppose you have seen the site in the House of Representatives over who is going to be minority leader, whether it will be Speaker Pelosi or not.

    PERRY: They will get it all sorted out.

    My focus is on getting those number elected member of the legislature to really go to the front not have to go to the back. There was a powerful message sent Tuesday. We want you to get the spending under control, get this government pushed back into that box we call the constitution, and allow the states to be the laboratories of innovation and competition.

    VAN SUSTEREN: Do you think the Republicans will be able to achieve that more easily or less likely if Speaker Pelosi is the minority leader?

    PERRY: Speaker Pelosi has been a lightning rod. And so, again, I'll let them figure that out. I know the issues are what's really important here, and that's to stop the spending, to get our tax structure back in place where it doesn't punish job creators, and let the states, whether you block grant the Medicaid, Medicare -- I even touched on my book "Fed Up" about Social Security. It is a Ponzi scheme it is broke. My children in their mid 20s they know this thing is no good.

    VAN SUSTEREN: That's the word you used, "Ponzi scheme" in describing Social Security, and compared to the Madoff crisis.

    PERRY: Yes.

    VAN SUSTEREN: Before we get to your book -- lots happening in Mexico over the weekend. Not a surprise, but 20 more, at least, 20 more murdered.

    PERRY: Five Texans lost their lives last week, including a Texas National Guard troop in Juarez who was killed. And my question to this administration, how many Americans have to die on that border before you really understand we need boots on the ground, a law enforcement presence, National Guard troops, predator drones flying in the air, that technology that those pieces of equipment have to give real-time information to law enforcement, to the local police chiefs?

    We know how to secure the border, but this administration and frankly this Congress have been abject failures and have been for many years now. But we're seeing our citizens being killed. And this is unacceptable.

    VAN SUSTEREN: It is interesting. The big fight seems to be whether we seal the border and have comprehensive immigration reform at the same for do it in two steps. Does it even matter? We're in the process of debating, or we are getting nothing done.

    PERRY: I think it does matter. I don't think the American people trust Congress to do them together. I think they expect them to see that border secure. They want to see the law enforcement presence. They want to see drug cartels driven away from that border. Then we can have a conversation about how to reform immigration laws so we have a free flow of people.

    Mexico is our number one trading partner. This is really important for Texans to get it right. We've got to secure that border first that is the first order of business.

    VAN SUSTEREN: Secretary of Homeland Security Janet Napolitano said, and I looked at her statistics to back it up, they are deporting more than ever before. They've got more boots there on the ground. But the fact remains we don't seem to be getting ahead of the problem. Do you have a suggestion?

    PERRY: Yes. I've asked for 1,000 National Guard troops since January of 2009. And all we've heard from her has been a chortle from time to time and to say, listen, if you want National Guard troops. Send them yourself and pay for them yourself.

    That is absolutely irresponsible for a federal agency head to be saying when we seen American citizens losing their lives. It is absolutely irresponsible for them not to have the troops -- sending 230 of the 1,200 that they were going to send to Texas, that's nonsense. We have a 1,200 mile border, and 12 of the 1,800 miles in Texas. That's where you've got to focus the work and the people and the resources.

    VAN SUSTEREN: Have you been able to reach out to President Obama on this issue? I know you passed him a note in Texas on the tarmac.

    PERRY: This president knows what is going on. Reaching out, we reach out, we reach out. And hopefully the American people reached out last Tuesday and sent a clear message that we don't like the direction you're headed in this country.

    If you want to have a chance to serve again, you best start listening us to. And one of the things really important to Americans is their safety. And that border with Mexico needs to be secured.

    VAN SUSTEREN: Do you think he understands that and is going to do something different?

    PERRY: We have to wait and see. We haven't seen any indications yet they're doing anything different.

    VAN SUSTEREN: The book "Fed Up," first of all, there are many things that surprised me in the book. I had never sort of compared California to Texas, two states that have a lot in common and very different in terms of the situation right now. You have an unemployment rate of a little over eight percent.

    PERRY: Yes, 8.1 percent today. We did a good comprehensive study this last year between California and Texas. It's a powerful piece of work. The tax structure, it boils down to four things -- don't spend all the money, have a tax and regulatory policy that is fair and predictable, have a legal system that doesn't allow for over-suing, and continue to fund accountable public schools with the message there's a skilled workforce if you want to expand or you want to come to the state of Texas.

    And 153 businesses just since the first of the year have moved out of California to Texas through September.

    VAN SUSTEREN: California has a horrible problem with money. There is no secret. We are constantly doing reports asking whether California is financially going to fall into the Pacific Ocean. How are you doing in Texas?

    PERRY: We have a balanced budget amendment in Texas. Our per capita debt is $520 per person, that's it. Compare that to the federal government $42,600, and California, which I want to say is like $1,800, $1,900, New York, $3,200. So our per capita debt is very low, and we'll have a balanced budget without raising taxes.


    VAN SUSTEREN: Catch more of Governor Perry. He has a story about Governor Sarah Palin and we guarantee it will make you laugh. We also asked Governor Perry is he's running for president. That's next.



    VAN SUSTEREN: Continuing with Texas Governor Perry about his new book, "Fed Up, our fight to save America from Washington."