Gov. Corbett: We are going to live within our means in Pennsylvania

This is a rush transcript from "Your World," October 10, 2012. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST OF "YOUR WORLD": Fox on top one of Mitt Romney on a role and now keying in on, yes, the Keystone State. A new poll showing him closing a double-digit gap, now within two points of the president. This is Pennsylvania. I think Ronald Reagan was the last guy to win there.

Many credit his debate performance, but maybe credit is due this guy's way, Republican Pennsylvania Governor Tom Corbett only one of four governors to get a grade of A. in a new Cato study for his tax reform policies, which Cato described as real and credible and necessary.

The fine governor joining me right now.

Governor, good to have you. Thank you for coming.

GOV. TOM CORBETT, R-PA.: Thank you, Neil. Thanks for having me on today.

CAVUTO: Maybe your measures are doing the trick, Governor. They are helping Mitt Romney. Of course, it cuts both way. Right? If people in your state feel better, they might give the credit to the president.

Of course, I am sure you just want them to feel better and feel their lot is improving regardless of who politically benefits. But why do you think these polls are narrowing? And what are they discovering?

CORBETT: Well, I think in regard to the polls here in Pennsylvania, what I see are people that are starting to go back to work. We are slowly getting the economy moving in Pennsylvania. We have growth going on in our energy sector, in our biotech sector.

We saved jobs down in Philadelphia with the refineries that were going to go out of business a year ago. I think there is a positive feeling that is starting, and just starting.

As it goes to the polls, I don't think that people in Pennsylvania are happy with where we have gone in the last four years. I believe the polls are narrowing, although I always tell everyone the only poll I look at is the one that is going to be on November the 6th.

But it is much closer here in Pennsylvania than what I have seen in other polls that have been in the national media in the last few days.

CAVUTO: Why is that, Governor? I particularly noticed your state's polls, that they really can have huge swings. And the president not too long ago being up in one poll 15 points and in another 12 points and in another 10 points.

But bottom line, to be get it essentially even now tells me either a lost independents are coming out of the woodwork or a lot of the president`s supporters are switching sides. What is it?

CORBETT: Well, I think a lot of his supporters that voted for him four years ago either are not going to vote, they have decided they will stand on the sideline or will switch over to Mitt Romney in this election.

Going and traveling across Pennsylvania, I have talked to a lot of people, Democrats and independents and even Republicans who last time voted for President Obama have said they are not voting for President Obama this time and they believe we need a change in Washington, as do I.

CAVUTO: You have proven at the state level -- and I am not blowing you smoke, Governor, but I am always intrigued by what you have done, because I tell a lot of people this can be done. It is doable. Simplify the tax code. Make it more friendly to business and individuals. And you can do that.

It is a tough haul, but you can do it. Right?

CORBETT: You can do it if you have the discipline and the fiscal discipline for the state.

I believe you can`t spend more than you receive in revenues to the state. We are not Washington. We don`t print money. We don't continue to add to the debt in that respect. We have to control our spending.

And the spending prior to me getting here had increased from about $22 billion to almost $29 billion. We have reduced it by almost $2 billion.

Some of that money in the last budget before I took office was based on federal stimulus money that was one-time money and is gone.

If you stick to the discipline that you can only spend that which you have, then you have to make really tough decisions. But it is interesting to note. I always ask people who want more money for various categories in line items, well, do you want me to raise taxes? Their answer to that is always no, so you cannot have it both ways.

And I believe -- I made a promise we were not going to raise taxes as governor. And we will live within our means. The best way then to increase revenue to the general fund is to increase the business climate to bring businesses to Pennsylvania, to keep them in Pennsylvania, and to see start-ups come to Pennsylvania.


CORBETT: Just yesterday, I was at what we call our Ben Franklin -- and the Ben Franklin is working very well, starting up new companies and incubating them and sending them out. So it is working in Pennsylvania.

CAVUTO: Governor, thank you very much.

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