This is a rush transcript from "On the Record," February 23, 2011. This copy may not be in its final form and may be updated.  GRETA VAN SUSTEREN, FOX NEWS HOST: Tonight, Governor Scott Walker needs caller ID! He gets a bizarre prank call and falls for it big-time.  UNIDENTIFIED MALE (IMPERSONATING BILLIONAIRE BUSINESSMAN DAVID KOCH): What we were thinking about the crowds was planting some troublemakers.  GOV. SCOTT WALKER, R-WIS.: Well, the only problem with the -- because we thought about that. The problem with -- or my only gut reaction to that would be, right now, the lawmakers I've talked to have just completely had it with them.  VAN SUSTEREN: Now, that's only part of the call. The governor's right here and he's going to tell you all about getting punked and answer some very direct questions.  And how about those 14 Wisconsin Democratic senators? They're still missing. They just won't come home! But that's not all. Things are just heating up. Now Ohio and Indiana are at war with the unions. "On the Record" hits the road to take you right to the heart of it all. We went to Wisconsin, where Governor Scott Walker went "On the Record."  VAN SUSTEREN: Governor, nice to see you, sir.  GOV. SCOTT WALKER: Good to be with you in person.  VAN SUSTEREN: And it's lovely to be back home. I love Wisconsin.  WALKER: Wisconsin! It's great to be here.  VAN SUSTEREN: All right, you got a lot of very angry firefighters out there we talked to. What do you say to the firefighters?  WALKER: Well, one, our bill doesn't affect them. But in the larger context, this really is about workers and it's about balancing our budget. We're giving workers all across the state the opportunity to take the money that previously has been automatically deducted out of their paycheck, and instead, give them the right to choose where that's spent. Some cases, up to $1,000 or -- I mean, think about that. In some households, it might be up to $2,000...  VAN SUSTEREN: They don't want it, though.  VAN SUSTEREN: I mean, these firefighters, they don't want it. They think it's just union busting and that -- and they realize that they're not covered by your bill. But they just don't want it.  WALKER: Well, in terms of that statement, no, absolutely not. For us, it is all about balancing the budget and making sure that local governments have the long-term plan because we don't need a short-term fix. The reason we face a $3.6 billion budget deficit is because previous governors, previous legislatures, have used short-term fixes, one-time fixes to push us to the problem we have today. For me, we've got to make a commitment to the future and ensure that my kids and kids all across the state aren't saddled with this burden for years down the road. The only way to do it is in what we're proposing in this "budget repair" bill.  VAN SUSTEREN: All right. Let -- let me back up for a second. As I understand it -- correct me if I'm wrong -- what this bill is, that the teachers unions -- the unions have agreed to the financial aspect to it. They've agreed to pay into the pension fund and the health care. What they object to is the provision having to do with collective bargaining rights. You've said in terms of collective bargaining that they could still collectively bargain about their salaries. Is that right?  WALKER: Base salary up to the CPI, so that communities' real ability to pay is adjusted for. But why you need to do that permanent -- and I know that, as a former elected official at the county level -- if you don't make that sort of permanent change, it's just a one-time fix. This is not a permanent fix. They're not taking away collective bargaining for health care or pension payments. It's a one-term offer that, by the way, they really can't guarantee in the 700 -- or excuse me, the 424 school districts, 72 counties, the thousand-plus different municipalities across the state. All those will see less state aid in the budget I introduce next week.  Think about that. Governors across the country are cutting billions of dollars from schools, local governments, universities. Heck, the governors of New York and California, both Democrats, are cutting billions of dollars from schools and other local governments without any tools. What we're giving these local governments is the tools not just for today but so that we make a commitment to the future so they don't have to keep coming back and having these sort of budget battles.  VAN SUSTEREN: So you're saying that the collective bargaining provision is an economic one, because they're...  VAN SUSTEREN: They're saying they're giving in on all the money -- money on the health care and the pension and that that is what you asked for...  VAN SUSTEREN: ... and that this is a union-busting provision.  WALKER: It's not at all, and I'll give you a couple of examples. Certainly, we need the 5 and the 12 percent on the pension and health care, which, by the way, is well below what most people are paying outside of government here in the state of Wisconsin for pension and health care.  But beyond that, again, as a local government official in the past, I saw this all the time. At the school district level -- prime example of this. Many of our school districts across the state, because of collective bargaining, are forced to buy their health insurance at the WA Trust. That's the state teachers' union's company that actually sells that. If we pass this bill -- when we pass this bill, those school districts will no longer be mandated to buy that through the WA Trust. They'll save $68 million a year just by buying into the state employee health care plan.  Another prime example. A county official today contacted us and said, Do you know that in our county, because of collective bargaining, our parks workers have negotiated a deal where their work time is from 7:00 until to 3:00 every day. So in the summer, when people are out in the afternoon in the parks, if employees are going to come in and work at those parks, they have to pay them time-and-a-half.  All those things have real fiscal consequences that have led to the dire consequences we're in today both the state and for many, if not most, of our local governments, we've got to give them the long-term stability to balance their budgets.  VAN SUSTEREN: All right, are you going to budge at all?  WALKER: Well, I'm willing to listen, to talk. I mean, the best thing...  VAN SUSTEREN: But are you willing to -- I mean, is there -- are you coming -- Will you come off your position at all for the 14 Democratic senators, or are you...  WALKER: Well, one, they got to come back.  VAN SUSTEREN: OK, but the minute they come back, they think that they're in session and then you can push the vote.  WALKER: Well, come and talk to me. I mean, I...
<p>Wis. Gov. Scott Walker explains falling for a prank phone call from a liberal blogger, denies any inappropriate comments and insists his budget repair bill is not a union-buster.</p>