This is a rush transcript from "Your World," February 25, 2011. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST OF "YOUR WORLD": Get ready. It is about to get really big, really big. Try 50 states big. That is how many union protests are planned across the country the very same weekend governors are gathering in Washington from all around the country.

One of them is Ohio's John Kasich, who says he's ready.

(BEGIN VIDEOTAPE)

GOV. JOHN KASICH, R-OHIO:I'm going to go in Sunday evening. There's a White House event that I'm going to go to. And I will be there Monday and then I'm coming home. I won't be there very long.

Neil, every time I go to Washington, I break out in a cold sweat. So I try not to spend too much time there.

(LAUGHTER)

CAVUTO:As a former congressman and House budget chief, I guess I can appreciate that.

But, today, Governor, the president met with Democratic governors, many of whom were reminding him to stay true to their basic causes, et cetera, to show some empathy for union workers, et cetera. But the president is in bit of a box. How far should he go, you think?

KASICH: Well, I think he should let me run Ohio. He should let us, the legislature, the members there, we should be running Ohio. The states are the laboratories out here, and I think the president needs to mind to the problems that he has in Washington.

When I left Washington, we actually had a balanced budget and we paid down the most amount of the national debt in modern history and cut taxes and created jobs. And I was the chief architect of that plan in '97. And now I look at it and, my goodness, they have even taken a path on the budget to set up probably a political trapdoor. That is not very good.

Out here, Neil, we are focused on taking the lessons from Reagan, the lessons from Kennedy, who said cut taxes; a rising tide lifts all boats, and the lessons from the '97 agreement to try to get Ohio moving again.

Only two states have lost more jobs in the last 10 years than Ohio, and that is California, where they do not seem to get things right, other than the coast and some of the beautiful cities -- everything else, they are driving people out -- and Michigan, which has been devastated by the auto industry.

So, here, we are trying to have a resurgence in entrepreneurship and a resurgence in job creation, because we need the revenue to lift all of our communities. And the collective bargaining is just one piece of an overall reform agenda that I will unveil on March the 15th.

CAVUTO: But do you think it has gotten to be a sideshow? Do you think that it has taken away from some of the bigger budgetary ills you want to address? Or is that part of the package? Because there has been some concern expressed even among some Republicans -- it began with Mitch Daniels, who has since moderated a bit -- that maybe, maybe this image of Republicans going after public workers is going to backfire.

That is, I know, not your intent, not these others' intent, but that's how they fear it could be perceived.

(CROSSTALK)

KASICH: Yes.  Well, first of all, we are not going after anybody. I can tell you that this collective bargaining law cost the state last year $200 million and we estimate has cost local communities about $1 billion.

Now, that is not good for Ohio's health. And we are not -- we are not -- what we are saying is, if you want to negotiate for wages and some working conditions, you can go ahead and do that. But it is up to the taxpayers who are represented by managers to make sure that we control our pension systems and that our health care costs are brought under control, Neil.

But, look, Ohio must have a platform for job growth. And I have traveled all over this state to communicate this. Everybody is going to be involved in the reform. Unfortunately, there will have to be some cuts.  But if we don't get to it, the South and the Southwest will continue to devastate us economically.

CAVUTO: But what happens if not everyone wants to get to it in Ohio, Governor, that you have a situation much as you had in Wisconsin and still have Indiana, where a number of opposition senators and representatives, both, go to another state rather than vote, you have not had that yet in Ohio, but you could. What do you think of that type of action?

KASICH: Well, I just think people ought to do their jobs.

And -- but, look, I don't want to be judging, frankly, Neil, legislators in other states. And I just -- that is not where I want to go with this. I want to keep focused. I'm going to unveil a budget in 19 days that is going to be one of the most significant reform agendas Ohio has ever seen.

And I do it to create that platform for growth. We just privatized our Department of Development, because we need to move at the speed of business, not at the speed of bureaucracy. And, look, I don't mind people being worked up and upset and protesting.

It's passion. You know me. I am a passionate guy. I respect it.  But, at the end of the day, we need to represent the taxpayers who have made enormous sacrifices. Many have lost their jobs. Many of them have seen their companies -- they don't have a pension -- they have seen their companies cut the match for their 401(k). They have seen their health care benefits be shredded.

They have made enormous sacrifices, the taxpayers, and we're just asking everybody in Ohio to step up to the plate and be part of the solution, because, long term, our union households will be better off, our government worker households will be better off for their kids if we create a growth agenda in Ohio, rather than continuing to lose population and job creators.

CAVUTO: Governor, Thank you very much.

(END VIDEOTAPE)

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