mchenry and representative donna christensen. we will talk about the implementation of the affordable care act "washington journal" is live on c-span every day at 7:00 a.m. eastern. >> jackie had style and panache in her entertaining and she did it again in the white house after her heritage. right after the administration, during the johnson years come the whole world erupted like volcanoes. and it became a whole new

concept of women. i think mrs. clinton today represents the new woman. >> we will continue our conversation on first ladies. leticia baldridge reported about jacqueline kennedy and the role of the first lady and what has changed along with the nation tonight at 9:00 p.m. eastern on c-span. from the bush and brookings institution, this is about an hour and a half on immigration policy. [inaudible conversations]

[inaudible conversations] >> good morning. welcome to the brookings institute. and we really appreciate you joining us this morning for a discussion about immigration reform and its education for metropolitan areas. we are focusing in these very important topics. a recent book was co-authored by bruce katz and jennifer bradley. called the metropolitan revolution. but it was entitled about how we are fixing broken politics and fragile economies.

it is often bipartisan solutions to some of the supersized challenges of our time. such is reviving the manufacturing sector in northeastern ohio building a world-class transit system was part of the focal funds and part of exports and trade at this point of production this is leadership and managing the flow of integration of immigrants. we are moving forward to advance opportunities for immigrant families and workers and employers in the absence of

comprehensive immigration reform. to be sure, leaders must lead because they know the needs and assets of their economies best. they cannot go out alone. a strong federal partner and transparent rules and policies, it goes a long way enabling on the ground economics expends. so led by our panel today is audrey singer, she will remind us why conference at immigration reform matters. but i also hope progress is still possible because of the creative collaboration of local

leaders. we have sicilia muniz is director of the director of the administration. she was senior vice president and now where she has been working tirelessly to get legislative reform done. as a testament, cecilia munoiz received a macarthur genius award in the year of 2000. i also wanted to note that she was born and raised in detroit. her father worked as an engineer at the ford motor company. and in fact, we have joining us this morning, the congresswoman

and time permitting, i think it would be interesting if she could give us a window into whether or not there is a short-term goal for the federal government to help them get out of their fiscal crisis. so please join me in welcoming cecilia munoiz. [applause] >> thank you very much for the introduction and having me here. i am a big fan on metropolitan policy and this is an incredibly important forum and i appreciate so much being a part of it. as you have heard, i have worked in the country for over 25 years and while this issue is discussed and pretty much decided upon in washington, the

impacts was really part of the cities and towns in dealing with the immigration i know this from personal experience i grew up with communities from around the world in search of the american dream in detroit. my neighbors on the block where i grew up and where we lived order from the ukraine, from all over. this is very much part of the story and part of the american story and we started in california and chicago and worked on issues of integration because this happens in local communities. when i started at the white house before i became director of the console, i was director of governmental affairs, which means that i will manage this

all across the country. in that role, i worked really closely with local leaders as they struggle to recover from this historic recession. many of them from both political parties understood and understand the integral role that immigrants play and grow the local economy and get through difficult economic times. i can tell you that president obama understands this as well as a u.s. senator. before that, as a state senator from illinois. the president developed the view that immigration reform is not just the right thing to do, it is an economic imperative that also impacts communities in very tangible ways. two weeks ago the white house highlighted the economic benefits of the bipartisan immigration reform bill that passed the senate in june.

this includes higher investments and more productivity. our economy will grow by additional 5.4% compared to the status quo deficits will rise and arquette will strengthen and if congress asks him in the solvency of the trust fund will be extended by two years and 75 year shortfall will be reduced by nearly half a trillion dollars. if congress acts and then asked, the recovery will be strengthened and in so yes, comprehensive immigration reform

is part of the security imperative and it is about basic fairness and since the focus of the discussion today is the debate on cities and metro areas, i should add that that is something that we can finally address what cities have been facing as they grapple with our broken immigration system because the crux of the matter is while congress and the federal government has the authority to set immigration laws and enforcement, local governments live with the result of what congress does and what congress fails to do. because they have failed to address the broken immigration system for years, local governments wrestle with undocumented immigrants living and working in their communities. in his apologies are facing these challenges in a variety of ways. this includes immigration enforcement, which is a federal

function. in-state tuition laws so that undocumented students have better access. local police forces wrestle with the challenge of building relationships and communities which are by definition living in fear of context of authorities, which make it harder to encourage folks to come forward when a safety hazard emerges. we work to integrate children who struggle with their fear that their parents will be deported. research has shown that this kind of anxiety interferes with students. while some have responded to these challenges with a variety of approaches, the fact is that states cannot face the united states congress. we know that it is happening in local governments especially in regards to hearing more about that today. it is important that congress

regulate immigration this is a part of integrating us and one community. subscribe this a little bit, i should start by saying i'm hopeful that june 27, 2013 is a day that will go down in history. i was fortunate enough to be sitting with border security economic opportunity and immigration modernization act has provided technical support all the way. nobody got everything they wanted. especially in the white house. but the final will reflect that the principles and it was consistent with our history and a nation of immigrants.

it was an overwhelming bipartisan majority in the 60 to 32. just put that into perspective, last november's election, only two places, utah and washington dc gave either candidate 58% of the vote. the reason it got so many votes is simple. it is a smart compromise and pretty powerful. it creates a fair pathway to citizenship with 11 million undocumented immigrants working in our communities, a pathway that will pass them in turn require them to pass background checks and penalties and go to the end of the line behind those who have been caught in the lingo of immigration background and the bill will create a new path to citizenship for those to contribute to industry and put food on the table. these play an integral role and we gave them another time a pathway to citizenship. it creates an expedited path to young immigrants known as

dreamers and attended school and yet have lived in constant fear or. the bill also represents the best that we have to modernize our legal immigration system and it builds on the administration's progress and border security and that exploit workers and also creates a meaningful pathway to earn citizenship and undocumented immigrants for families and workers and employees. so we know that the fight for immigration reform has never been easy and we do not expect it to be. there were plenty of people who predicted that we would never get this far and focusing that we won't get any further. but there is little question in my mind that the senate bill or something very much like it was passed and as the president said when the bill left the senate, now is the time when opponents

will try to put this apart so they can stop it from becoming a reality. so we have work to do. but i believe that even in today's washington, the coalition is calling for action that is too broad and too deep and too forceful to acknowledge. if we keep our sense of urgency and a sense of purpose, i believe that congress will reach the clear majority of americans and they will listen to the business community and the chamber of commerce and the one from across the spectrum. law enforcement and civil rights enforcement and importantly state and local governments. all of whom are calling for a commonsense immigration reform. just the other day the architect of the obama campaign and steve schmidt, senior adviser to the 2000 a mccain campaign wrote a joint op-ed with a less than

vague title. pass the immigration bill. we are telling them that now is not the time to let up. it is the time to speak up. it is the time to make sure that everyone not just in that city around the country are making it clear to families from all backgrounds and all parts of the country but we are dealing with the effects of the broken immigration system. so with the hard work around the country, i thank you for your contribution in the municipal government and i look forward to

this effort in getting to the place where the president is signing that bill into law. we thank you very much. [applause] [applause] good morning and welcome everybody. i'm a senior fellow and we are moderating this process and we are going to talk today about what immigration reform means for cities and suburbs. i want to ask the panelists, and all of that is happening and i will say a few words here and make an awkward move and then

continued talking and we will start the discussion. as you have just heard, there are many good reasons for immigration reform. many facets make up a comprehensive set of measures to make our immigration system work better and strengthen the u.s. economy. the immigration debate is very much alive in congress as we continue to discuss. including how to change laws and many that we just mentioned, including border security and legalization and a worksite verification system and policies around the admission of legal permanent residents. we don't know yet what the outcome of the current effort will be. we don't whether we will see a lot that resembles the package of immigration policies that were passed in the senate about a month ago or whether this is part of the approach, such as introducing a number of bills as discussed.

weren't coming to an agreement and what is the status quo and what is the consequence of that. we are working on the things that we will be discussing. we do know that u.s. immigration policy had not been overhauled in more than 20 years in the 1986, there was the immigration reform and control act that was primarily part of the legalization of about 3 million undocumented immigrants by the united states 1990 immigration reform and control act and by 1990 the immigration act followed four years later and had increased overall immigration levels established with a system of employment and family-based immigration also created well-known programs such as diversity visas. what is different today, however is that the u.s. economy is creating new demands for industries and some that barely

diminished. in addition, national economies had changes to communication technologies and now there is a global economy. on top of that, the u.s. now has twice as many immigrants in more than 40 million today than we did in 1990. and these are some of the things we should adopt and it is better with our economy. i will make my awkward move over to the chair at this time. [laughter] [inaudible conversations] [inaudible conversations] >> so okay.

today the discussion is about federal immigration reform. while congress is debating the changes to the immigration system in cities and suburbs across the country, we are already in the business of incorporating immigrants. we are going to help with this into perspective and we are going to introduce this in a moment. it is a federal responsibility between many state and the miscible actions over the last two years. and over the the fact that localities are part of this. and the success of this is how it is implemented at the local level. since most of america's immigrants live in these areas, cities and metropolitan areas include industrial structures

may have different housing method both native and foreign-born that are different than each other and this include includes when cities immigrate and put out the welcome mat for immigrants to start businesses, pay taxes, find jobs and create homes. in alabama and georgia, they are creating their own enforcement laws and more the investments made were part of the government on top of the organizations and businesses and today there are three places when it comes to the local programs and policies surrounding immigration and i want to talk today about what is happening. to my far left is the

commissioner of the mayor's office of immigrant affairs. she has had a number of jobs in municipal government and she brings such a good perspective of municipal government with more immigrants than any other in the united states, where three out of every five residents is an immigrant that she recently put out a blueprint creating a municipal agenda. she is a true leader among city officials both in the united states and also abroad. next to her is jason mathes, executive vice president where he leads the policy initiatives for urban development. he is also one of the creators of utah compact and a pragmatic statement of five principles including immigration discussions the 125,000 immigrants that live in

metropolitan area make up about 70% of the population. and to my left we have the executive director of a collaboration between the janitors commission and she has worked with many immigrants throughout her career and brings the unique perspective of understanding both sets of needs and how this works for workers and their families and the communities they live in and metropolitan l.a. is second largest city in there again about 40% of residents are going outside the united states. so he's pretty much part of the and many others have been focused on making sure that the children of immigrants have been thriving and help us with ways of communicating with immigrant communities and workers have access to programs that help them to have skills in that

immigrants get the help that they need. our guests today have some from a strategic and innovative practices and programs across the country. so as we have just heard, there are lots of possible ways that immigration reform might unfold over the coming months and we have a comprehensive set of measures were separate bills for discrete issues, like high school education and we have just heard about what can happen. so which types of immigration reform resonate with you and can you talk about some of the efforts and the organization that are in line with the goals of immigration reform and tradition? >> thank you, andre, thank you for the brookings institution participation that you're making today. that's why would like to discuss

the realities of the complex immigration reform. and that michael bloomberg has cared so much about this and he has started a national coalition an in the economy that brings together business leaders and mayors. for us it is an economic problem. there are part of this and nearly half of this is and they make our city it is critically important as we help them to realize their full potential in our cities.

we talk a lot about this and the realities of this. the senate bill provides a framework to be able to think about this. we have been asked to speak about the opportunities to get them to come out of the shadows that allow them to apply this. >> are there particular facet that are more important. >> smacked in the high school state, we in new york recognize that we are building what we hope to be competition and a we

have a whole new incredible campus that is coming and we have a number of institutions that are universities that are in new york. this is part of the infrastructure that allows us to globally and critically assess this. we believe that we can have the doctor without having to me both to fundamentally make this work. we need to recognize and agree these individuals need help to come out of the shadows. there are many who helped maintain our streets and our buildings. and then we need to help them maintain the vibrancy. there were over 50 million tourists a year and this is very

much we need to continue to be. >> can you talk about this? >> there a lot of issues that are the same. it really boils down to the same thing, with a very simple thing that we want to be someone who went to those communities for these high skills or hourly employees. ..

the. >> what do you see? >> one of the areas we have already worked odd

regardless of what happens is that is critical to building success for immigrant families and education for in the gate -- a record children with a civic gauge meant to end then with partnering those jitters in in silicon valley at the downtown law acidulous and we are embracing and diverting waste management as part of this economy. that immigration reform is not about what is happening to the big trends but not

just for legalization but for citizenship. berringer create successful community is who can adapt to the changes it is important to look at lake ridge acquisition regardless of the requirements of the table. we're already working on that. >> it is clear doing a lot of work with immigrant communities those that do

business is locally in many parts of the country this is going well the way they have grown economically. touching on this bet cannery talk about at the federal level would need to welcome and support of immigrants? >> true. as indicated during the last presidential election a preponderance of those in one camp or another of washington d.c. and utah was close to the other side of

the spectrum it is a very conservative state although there are pockets of progressive people in utah sometimes it is difficult to be moderate in a conservative place like utah but really what it boils down to is not just about the economic impact what immigrants have they are the net positive for the hourly employees and create more jobs for americans said contribute to our communities but it also has to do with the kind of country we want to live in to be in a place where people make decisions to be a place that day is welcoming or inclusive to recognize the diversity with the perspective and go world

view that is actually a very positive and helpful. to think about the history in my state it has really bad a target we went from volleying be example movie in that direction in the use of -- of the works of this is a sense that say that isn't the right approach we could dramatically change that. rehab in-state tuition we have a community that is quite welcoming and i think it doesn't have much to do with being on the right or left but immigration reform is about doing the right saying and looking at what our state has done in my big question now is what we are

hoping for is the house of representatives will find a way for word fuller immigration reform critical not just to our economy but to the nation in a way that addresses our economy is. >> i know that it might be worth talking about it may be mentioning a the principles. i know the entire peace so how in a cave about? >> in december of 2010 it seemed inevitable utah would pass a law similar to arizona we had the majority

of our legislature moving forward and it was driven in it through my mind very small but vocal group of people do felt this is a priority and wanted to move forward but the people who run by state and care about this state, but community leaders said religious organizations were very uncomfortable with that but it seemed like a freight train and not a lot of ways it to divert that. every time somebody would stand up the police chief said if you pass this i will not use force if it is the wrong thing to do. the republican attorney-general said this is inappropriate we would not be supportive of this and then to say arizona approach is not the right approach for our community but they were smack dab and we thought if we could have

a group of people stand up at the same time to articulate a simple value based solution that would be empowering enough to change the course of the conversation. over the course of several months we had one hedger people working on this document of 227 words highlights five principles we thought we'd thought were critical and first it is a federal issue not between utah and other countries but the federal government and other countries we wanted to focus on the concrete recognizing the role they play but the real and necessary role that they play to focus on law-enforcement we pointed law enforcement spending time pursuing criminals that is not the role of the police officers and in fact, this aggressive approach

limits the ability to become part of the community. it is not with service we really care about families we don't want policies that unnecessarily separate children from their parents or make them afraid to go to school lot of fear of what may happen also rose the society that we may livid with the wide spectrum of people with committee organizations with a think tank did utah that spoke up a and a signing ceremony at utah state capitol building which is a similar document creating the bellevue based document. two former governors, the former u.s. senator along with several other people

who said these of the values that we will use to make a determination about immigration and in our community is really changed the tone and the discussion to help us become more thoughtful and compassionate and now our hope is a federal government will approach something similar. >> to of the biggest. >> by the metropolitan area area, personally and historic lee yours cities has been instrumental for the nonprofits and community-based

organizations to receive immigrants that helped them so is there anything you want to say about federal inaction? >> i have to say when they recognized it was a federal issue they are very match in the your kin particular hour past and present and future so federal inaction is a problem that we do all that we can to insure what we create is a place where true

yorkers are welcome. we do all the key and that if they want to start a small business there is opportunities in to insure they understand in the police department and i think does a really great job to understand the needs of the communities with the police department with over 50 different countries and there is a real truth that we have a number of young people who have not graduated from the high

schools so inaction end is a problem because these young people what to be a part of the city. we want them to be to be aware teachers or doctors and so there needs to be something there. with those who come to me so to be a part of the american dream in our city. then i would say we recently did a financial-services study we really focused of the fastest growing

community overwhelmingly all interested in investing in our children's education. big accounts at different points they had all vested to recreate their success to make our cities successful with the educational outcomes. so in action in impacts us but we will do all we can. >> so something we have been working on his immigration with community based organization laborer, the mayor's office to come

together of the principles with the immigration reform the coz it is bringing workers out of the shadows so to bring these economies to the surface and to come together and maybe different in those are a the conversations that leaders need to step up and have to understand of common ground to 100 words of the 200 words?

that alone for us that we started doing and also the of collaboration to do services zero or information for not just a the immigrants but also every betty -- every buddy. >> this is important to want to highlight the distinction really is federal but there are people when they are affected by a immigrants and immigration policy. i want to ask now what types of services are you already

providing that prepares you for the implementation of immigration reform whether all or some of the undocumented or the different kinds of workers? what kinds of challenges get into you see ahead? but we can't start with you. >> what we have been doing is the vocational esl program in terms of

providing a as service or change seeing the economy with the editorial work force of what is needed so we have been working to talk about different points of view together those setter often on the opposite sides of the table with the bottom line so with have management together with the workers in the year -- the union and from those small companies to sit down together to say

what is needed to do work force development that is the added value to mike company to be invested? that alone to note that my employer is investing in the. so a lot of those who are real estate owners but those who have been in my office to bring that quality of service to my house the and it is my bottom line so even to you bring that together we also provide the accursi skills and weld this and

health education and we do a lot of the framing so you have the building with said been janitors in one building and 40 in another they are spread out everywhere so we look at the union offices with a variety of employers so we have that access to their relationship for those who may have played which barriers and to the cuts that are happening

those over 2,000 workers who are a part of our program that is where we're already set up in terms of immigration reform happens with the individual investment of the workforce. with the living wages and access to health care is important for the work force >> what are you anticipating

to scale up? what is the impact of budgets? >> i would say it was a good test case for those around the country and in new york constant the 80,000 individuals who were eligible and the city of new york would create a partnership with the interagency task force to put out a message if you need school records or immunization records or after-school program or a marriage license.

all of my colleagues were wonderful and several were sitting around the country. but i will tell you we learned a lot from that experience estimated amount 8,000 from the dade said that we get but that's there is a whole reality essential leave they would get temporary deportation and authorization.

with the disconnect and this was an area of concern of 16,000 people bringing them out of the shadows so we're able to announce in new york city the $80 million invested specifically for the population that was eligible that we would try our best with language class's to also get in to the certificate program. so there is a concentrated amount of money. the truth this we need about

six times that amount of money for what needs to happen with all undocumented population. in addition the city of new york with eight law schools and the tremendous number of law firms, we have the nonprofit community that has robust services we have quite a number of legal minds what that means with legalization is incredibly important fossil with immigration fraud to say i

am here to help you paid the ex about of money we have individuals could being out messages to say there is nothing out there so we actually started a program to train them in the curriculum with the english language learners that we will have the information hopefully to engage them will flee to become immigration attorneys were those that could be lawyers to call on them to come back with additional trading and also gets in front of high-school students and

also if they want to mouth off there for questioning as a preventive strategy. with the recruitment strategy and the program of citizenship with the pro bono and to connect with the bank accounts with the secondary form of id this is

the city of new york, not the state. so a tool to be used by volunteers with houses of worship working with the largest volunteer service training volunteers to help from the english class is with is the reality of immigration reform working with civic leadership and these are ambassadors but the multi lingual across the community really do think these so be our ambassadors so back to your point of the

challenge to say we're trying all that we can to do this but money matters. we will have to be very creative with many and we will have to argue for so many. >> gift new york needs more money then i don't know. [laughter] >> but to talk about e-verify but there is no penalty if you don't do was so for the past legislative sessions there has been talk of creating a penalty so otherwise you would lose your business license but that is inappropriate that is not a fair solution a does not do anything to

address the problem. one of the things of a comprehensive solution is ibert five-year adipose to that system but has to be a national system where our state is not disadvantaged also is a critical point to come along with reform to come along with the legal status of those who urge your you just cannot cherry pick one aspect to say we will just do enforcement or e-verify or tea to reform they don't work in isolation it is a complicated problem but the answer has to be simple to do everything at once because they're all related to another.

i think that comprehensive reform is essential ian to really tired of waiting we have wasted wait too long the time for reform is now and ready to make sure our representatives understand that our organization has taken all multiple full-page ads with a multiple press conference to say this is important, essentials of lot we could do to improve our economy to improve some of those taken in the or resources immigration reform will require a little bit of money but a decision to have been enormous positive economic benefit and frankly derek is no excuse. the time is right and the

time is now. >> before we go to the audience question what are you doing the you think other organizations can learn from? >> i think what worked for us with a longer period of time his collaboration those that may not be a mower traditional partner getting farther and faster with the principles and guidelines that helps a lot with what we have done with our

industry and organization to the point that we understand we can respect each other's point of view but we have one mission in mind sometimes you have a different strategy in dade might change the interest to do grow so fast those are the elements in terms of the work that we're doing i think it is the same thing to take those small steps forward. >> i would just build on that really it is about trusting people.

with good is a indecency and compassion that we have to rely on i don't care what political persuasion or your feelings of americans are really good people and we need to go back to that to trust each other and trust ourselves to do the right thing. that is so critical. with that is something we would build is a sense of trust that ultimately it is that a larger goal what is the best society without trust nothing gets done and with that you can accomplish anything. >> our city has recognized

that recognize the reality. in to now work with cities across the country to realize they don't have to wait for immigration reform so to recognize how do they responded to the needs by having so much capital? but we created because we have blueprints of cities across the country now with a city start to engage they can collectively say this can be the benefit they will

realize in the federal government as a collective. you cannot ignore the reality as we have the opportunity and responsibility and economically we thrive so as a way to help support what happens that is where opportunities matter and i don't know where the communities are living. but for me what we have been able to do it in the york because i agree the time is now. >> this should drive the

discussion please say your name and affiliation. >> so for those that are here but i have two comments you were talking about the communities in the immigrants investing but the

of the problem is the bank's they approached moral of the community. so looking at those companies. i would like to have your views on that and on that approach. the second one is the diaspora from other countries helps them provide legal services so they had

community groups were they provide these so maybe you can approach them. >> hold onto that thought. we will take another question. >> i am with a vhs and you have been talking a about your city seems a stable economically had talent benefits your cities but to talk about a city like detroit that just filed for bankruptcy how will this give them the start to become the city that it once was? >> one more question.

>> good to see you. been interested of interagency cooperation and it seems there are challenges that killed at the federal level with those challenges are that could translate to the federal level. >> on the community development side of the local credit union you did was responsive and also many of the big banks based on that active branch level so

in some ways it is hand holding the we have a robust network as well as local branches there are challenges when you look at the lines in to do these to the traditional way western union but it is a learning process. the second question of diaspora those to celebrate where they are from manfred there are today we have found hyphenated american in the bar association's the muslim association for the latino or asian american or we could it go on.

the to be critically important to us. so when the mayor makes a statement in die quickly follow up to follow-up on the mandate very few of my colleagues will push back because it articulated decision from the mayor a and i have to tell you there are lots of good people and how to work together and to coordinate this stuff there

might be a challenge over who has ownership and to think about this literally to ensure the well-being and have we overcome them? yes. >> i don't know a lot about a teacher rates economy than what i read but immigration reform is that the only thing to let detroit comeback but it is one of the things to make that happen. in baby to access law enforcement not able to pay taxes not to have english and that is the problem that

creates a subset of people living in the shadows that will drive down in the community. so it is not the only thing to help detroit and this is something that will help everyone. in detroit has a lot of immigrants. there is a long history of immigration in the early part of the 20th century so the legacy of the cultures there all the other groups have changed over time is strong. with the economy and all different levels there is

also an initiative called global detroit to the main mission is to attract and maintain support with strategies within that as something that has become an important part to develop these kinds of programs because of the energy and investment. >> there was a lot of detailed work of the emigration using these indicators of the

naturalization process with the trajectory of the economic status the higher we score the community so a lot of times in our cities the economy's changed those cities that have higher scores to be able to integrate into the communities were more successful. not just that a low but it shows the type of requirement overall that is more collaborative. >> it is that indicator to

talk about not just the federal law in reform but how we do immigration and development and the path to citizenship because we as naturalized citizens as the native born. >> we have time for a few more questions. >> we should go way to the back next. >> i wanted to raise a quick

question of new immigration into this country given the fact of declining labor and it seems to me those that have the highest rates of growth fayette immigration and economic growth in addition to immigrants adding to the supply of labor and maybe you can show that and then the question of the cities like detroit h.f. should we try to get incentives to roof into a city like detroit? and what can and policies can we adopt to stimulate more integration? >> thaw.

>> hi. i am a medical student with the american medical association. my question is twofold. with the changing health care environment where we try to focus more with individuals that live in the united states with primary care based health system which is the future of health care for those that fall under the in acreage status? the general understanding is these individuals use the emergency room system which is what we're trying to move away from so what is the future? and second what is the

health issue that is most relevant with the population in general? >> i will start with the question the demography of the united states is such that we are looking at the aging population over the next couple of decades we will become very old we need younker people to take over the labor force with a globalized economy. and now the main focus for strength the meeting and maintaining ingrowing the labor force fifth off with immigration we have a number of studies that touched on

that talking about the geography of skills across the metropolitan areas and thinking the fiscal policy institute that economic effects but i will turn this to my panelists here. including the of labor for. >> and very directly those areas with the incentivizing with the big rental entrepreneurs to figure out two months of the rent and

absolutely that changed neighborhood and that economic outcome i would say that i was in minneapolis last week and it tells a very similar story with the mexican community and the african community with those neighborhoods that have experienced a lot of light and gay divested they negotiating to give them a building they transformed it into a central market so this is the opportunity for detroit. with the question of health care the reality of the realization for immigrants is quite real but those who are legal permanent residents and undocumented and in a place like new york

the system they already worked tirelessly failed to that and so much more. we do need to regulate primary-care in we are changing so as to become qualified health care centers but there is a gap but the greatest health care challenge there is a very large a voice on discipline that obesity is a huge issue a and will continue to be a and with greater indeed to it and if also with four eating habits and not caring about the size of the soda

that we treat and also lasko of movement and for eating habits results in the tremendous realities and so on. >> we are officially out of time. >> i would point out that these questions are related that typically immigrants are often young girl and healthier and less fat than many americans. [laughter] so there is a purported said people ought to have the us primary health care physician and toilet is an emergency use education to make people understand there is a better way to get health care of that is not something you'd be but all americans could benefit from but also education to make sure they understand.

>> also the county had the highest score card for immigrant invigoration in all of california. so we have a lot of immigrants with investment and higher skills but with that the service workers have this program with the janitors and a tutoring system set up so there is the higher skilled immigrant with tutoring working with the janitor in the experience and the reality is different to work together and with other experiences country together

with the workplace exciting silicon valley and to be part of that community and that is a great example they have the highest score card of immigrate invigoration and they have a lot of immigrants. >> i want to take our panelists for a great discussion collaboration, a

trust these are important when you think of a bigger insane policy going forward. thank you for being the best [applause] [inaudible conversations]>> thet

lady becomes the chief confidante the only person he can trust so she unloads to her interest her in and they all do that. they all trustor a and usually accompany the strongman to where she was

but that is the main role as confidante to the president >> rhee have the next level up a and certainly what we have talked are frequently the chinese premier li li, economic espionage where

the nation's state has geared its military and intelligence services toward the single focus of stealing intellectual property property, taking a back to repurchase it to compete to illegally against both the u.s. and european, asian countries from which they stole the property. a huge problem the director of the nsa has said it is the largest transfer of wealth illegally in the world's history many believe it is pushing $2 trillion of lost and stolen intellectual property so they spend as much time as they need to spend they will they there as long as they need to with that specific piece of property to bring back for

repurchasing to talk about the chinese other nations duet but nobody comes close to the chinese with theft of intellectual property. they have certain sectors of the economy of which they will identify and pass on to their units so if you get up and in the morning the i at security guide could be manufacturing sector pharmaceutical or biological peace or a military peace or a trade deal and for those you are to target that it is an anonymous but those responsible for defeating the nation state that is why

we're losing the fight to with a nation state to that is the problem that we're facing to talk about the espionage. and also these very enterprising young cyberhackers with that civilian intelligence services so during the chinese government to realize if you are a company that is on the list you are way down why not pick up the phone to say i unfree on nights and weekends for a little cash will be happy to spend my time so imagine

this half of those people have decided they do this on the nights and weekends they have just increased their ability to the asian allies as well by 50 percent overnight this is a huge problem there has been no consequences and i mean no consequences to economic espionage it is a free raid and a free run. you think that chided needs to grow 8% per year just to sustain to sustained programming is not by innovation by theft we will grow by two 1/2% this year

just to meet their numbers they are now indicating a 7%. do the math and understand where those jobs in the economy and where that prosperity is coming from. very, very dangerous stuff and they called it to get people to understand the gravity that is military or terrorist dial 2k81 negative create chaos and publishing the enemy.

[cheers and applause] >> hello everybody. hello. saddam. sit down. thank you. it is good to see all of you [cheers and applause] i'm this dollar deal -- i missed you. first of all, please give bill a big round of applause. that was a great introduction. i am so proud of him. i want to take our

outstanding partners said it majority leader harry reid for being here. and our outstanding leader nancy pelosi. [applause] but i wanted to see all of you. michelle says kay. the girls went off to camp so we are little lonely at home right now but bo is there i knew you have been working hard across the country with all kinds of trading and new ideas. every betty sharing approach is to how to get folks involved in our democracy and country and i could not be prouder not just the work

that you did before entering the campaign it is inspiring to me i had a chance to see some of your fellow organizers backstage and talk to them and it just reminded me what an incredible cross-section of people we have from of rural areas, educators, business people, those who were just committed to make sure to make sure the promise of america not only those professionals in washington but and to offer ideas to make sure is responsive and since i first ran for office

and the police said running for office is not just about getting elected i believe in winning that is good. [laughter] but when you ryan and u.n. you can actually get things done. it is the beginning, not the end it puts you in a position to a deliver on behalf of the folks what they are fighting for. i believed america was forged with the etf if you are willing to work hard to put in the effort to sacrifice to make hard decisions in delayed gratifications and in who

you love and what your last name is there was the first campaign behind everything that i did and more importantly fakes to the determination of the american people we have made enormous progress over the last five years. feelings have changed for the better just like when they talked back in 2008 but now we have to keep the momentum going to but now the challenge is to get back to the first order of business the challenges facing families even before the financial crisis we have

gotten backlog level ground but now we have to keep climbing in keep going there are so many friends and neighbors into rivers that were still struggling and treading water. the ground is a little fervor that was but those that didn't and those to strive to get into the upper middle-class have more opportunities so our businesses with the last 40 months. and those looking new for work for those lucky enough to have a job the wages and incomes are still flat line for the top of percent with

the massive increase of wealth with growing equality in our society and a continued sense of insecurity with ordinary families. we have seen record covers the people going to college but every young person talks about the incredible debt they carry and wonder if they cannot pay off given in the employment prospects. we have seen health care costs declined or health care inflation in decline since we put the affordable care act into place. but a lot of those have not been a joy by the families or pass stolen. across the board we have made price -- progress but

with that basic bargain of but we believe did if you act responsibly you work hard so we have a lot more work to do i will go back to galesburg illinois. they did not give you any seats? [laughter] they said the the reason we're going there is one of the places i gave my first big speech after i was elected to the u.s. senate. and then the building blocks to a cornerstone that we need it and to make sure the american dream is alive and well. i will talk about to put it

the distractions and the phony debates and the nonsense that passes is politics to get back to bases x and focus on what everybody is talking about around the kitchen table with the due date to date with there families. the kickoff that is several months of us trying to get washington and the press to refocus on the economy and also but to allow us to consistently make progress

it would be a pretty good speech. [laughter] i have given some pretty good for speeches before and they still get stuffed here in washington which is why i will need your help. we had close to 20 billion people involved in the last campaign. think about that. 4 billion people actively contribute with five or 10 or $25 increments. lenders demanded wanted to have dinner with george cost -- george clooney. [laughter] most of them i'd like to think did so because they believe in the mission ended the causes to make sure we are restoring what america

can be a and passing get onto the next generation. to keep people involved falafel of razzmatazz of the campaign in first while we do not have $1 billion to spend.

across the finish line. now is the time for us to get -- that's reason why we need you to stay involved when it comes to climate change and making sure we are passing on the kind of planet to our children, grandchildren, great grandchildren that keeps them safe. [applause] it's why we don't have you guys get so active on the affordable care act. because starting on october 1st. we're going be able to sign up people for the marketplaces that are going give people a square deal when it comes to their health insurance. [applause] we can only do it with you. [applause] oh. so we have got get folks activated and involved, and ultimately what you do day-to-day, away from the tv

cameras that's what is going make a powerful difference. some of the skills he used during the campaign to organize around wild fires and environmental issues in colorado. hopefully all of so you taken away something from your involvement and made it manifest throughout communities across the country. we need you to keep on doing that. that's the essence of citizenship. if nothing else, that's what the campaign was about. i always remind people i have run my last campaign. michelle obama is not sorry about that. [laughter] i've got a little over 1200 days left in office. i'm going spend every waking minute of every one of those

days thinking about and acting pony good idea out there that are going help ordinary americans succeed. they're going make sure that the next generation believes in the american dream because they have seen in their own lives. that's how i'm going spend my time. i hope that's how you're going spend your time. if you do, i guarantee you, we will continue to make progress and we will deliver on everything that we talked about in 2008 and 2012. thank you very much. i love you goes. [cheering and applause] [cheering and applause] are you still fired up? all right. [cheering and applause]

minority about the health care options available in the affordable care act. we'll also be joined by republican representative patrick mchenry of north carolina. he'll discuss the role of the irs in targeting political groups and implementing the affordable care act. we'll discuss what is in the health care law for the self-employed. our guest will be katie with the

national association of the self-employed. washington journal is live on c-span every dayed at 7:00 a.m. eastern. interestingly that the korean war would help the south korean unify themselves in a way that was not there before. when this is the communist came down and a lot of the south koreas turn against the communists. and that sort of solidified, i think. a sense of national cohetion and identity. i think having waited it's very possible that the south probably would have -- it's possible it would have disconsistent grated on the own. >> sixty years after the north

korea troopses cross the parallel. they look at the war that never really ended sunday night at 9:00 on after words. part of booktv this weekend on c span two. the u.s. postal service lost over $16 billion last year. postmaster urged congress allow the elimination of saturday deliveries to save costs. and do away with the requirement to prepay future retiree health benefits. this oversight and government reform hearing is two hours and forty minutes. [inaudible conversations]

good morning. the committee will come to order. the oversight committee mission statement is that we exist to secure two fundamental principles. the first americans have right know the money washington take from them well spent. and merves deserve effective government that works for them. our duty on the oversight and government reform committee is protect the rights. or solemn responsibility it's a hold government accountable to taxpayers. taxpayers have a right to know what they get from their government. it's our job to work tirelessly in partnership with citizens watchdogs to deliver the fact of the american people and bring genuine reform to the federal bureaucracy. let us be very clear today, the united states post office is in crisis. the american people lost in the range of $16 billion last year. they never wrote a check, the appropriators never had a

meeting, and authorized anything. this committee was unable to take effective action. last summer, the united post office defaulted on $11 billion on payments required by law. every day they lose $25 million as we speak. the situation is both unacceptable and as much congress and the administration's fault as any of the hundreds of thousand of workers at the post office. ultimately we have kicked the can down the road by just doing enough and every year since then. in 2006, i don't think anybody was predicting an additional 25% reduction in postal volume in just six years. the post office will and has continued to make some

adjustments. less people in large out of date facilities is not the answer. real reorganization, fundamental restructuring, right sizing facilities, and being allowed to innovate in new products is essential. today we will hear from two panels, those two panels are in fact essential to us. we have an obligation and representative smith, i appreciate your being today. we have an obligation to fifty state and all the territorial delivery. we have a universal delivery system at the heart of what the post office does that no private sector company is tasked to do. we are proud of that. the post office has been proud of that for 200 years. but to preserve delivery to every point in the globe and

every point the united states by the u.s. postal service requires real change. including retiree health care plan. the ranking men do away with the retiree health care funding. you'll notice i didn't say prefunding. if you stop making the payments, ultimately you will not be able to make those payments. mr. cummings know that, i know that, it's the reason that any bill that comes from the committee will restructure to the greatest extent possible but recognizes that those bills will come due and they must be addressed by this committee if we're to be realistic about reforms that will guarantee a post office well to the next century. we can discuss plenty of reforms here today. the truth is reforms are going to come primarily from us

enabling the system to work properly. congress must reduce or eliminate the kinds of preconditions we put on whenever possible while maintaining our requirement of universal service. our commitment is bipartisan. our need for a bill is urgent. we intend to do it in the coming weeks. among the important cost savings no longer overlooked is shifting it from six days to five days. it was once opposed almost universally as time has gone on we have found more and more of the major shippers recognizing that the alternative of higher cost is more unacceptable than having to adjust when you ship a package so that it arrives a the the time the customer needs it. let understand going from six to five days, even if achieves the $2 billion savings is but a

small down payment. we must look at every possible savings and those savings must not be back of long time bongers. they cannot be on the back of those who have give their careers. we must find acceptable ways to offer retirement and right-sizing to postal workers. and i believe we can do that. at the same time postal union must join us with to work together make the kinds of efficiency increases that allow high pay, good benefits to be earned now and in the future while deliverying a product that can meet the requirement of the customer. i believe question do that. i believe we can do that. ill like to take a moment to -- ly not say that his vision of the bill and my vision of the bill are yet identical. but our teams have worked together and we worked across

the -- dome, as a matter of fact, that a letter sign bit chairman and rehabbing member harper and coburn be placed in the record. >> without objection pop so ordered. we in the house and senate must get together and must do it this year if we are going to begin to have the post office make the changes now with the money that we are currently losing being the money we invest in longer losing in the future. and with that, i recognize the rehabbing member for the opening statements. >> thank you, chairman. i want to thank you for your words and bipartisanship. i'm reminded that it was the end of last year we were working feverishly trying to come up with a bill, i think we got about 85% there. i believe we'll be able to

accomplish that. i pledge we'll work hand and hand to achieve that. i thank you for convening today's hearing and i thank you for agreeing to my request to invite mr. cliff, the president of the american postal workers' union to be here today. we are able to hear from the letter carrier. i'm pleased that today we have a change to hear from fricials -- officialses who represent the men and women who work in our postal committee. it it's a vital wing that binds our nation together. our job in congress is enact comprehensive legislation that will strengthen those by ensuring that the postal service offers products and services that meet the changing demands of consumers while operating efficient and effective network that provides all customers with

timely and convenient access to these vital services. the challenge facing the postal service is -- last year they reported losses of approximately $16 billion. that's with a b. losses have continued this year and the postal service has all of the fifteen there has to be

changes with the with regard to the number of pros we have. the postal service cannot go the job alone. congressional a, is essential to put the postal service on a sustainable financial path. i'm glad the company is poised. i'm disappointed with the legislation circulated by the chairman. the chairman's draft legislation would end -- immediately and then most -- store delivery in the nation by

-- and most store delivery in this nation by 2022. rather than returning the overpayments made in to the federal would burden them of yet more debt by increasing the borrowing authority. to flocked visions allowing the postal service to lay off or dismiss employees including those of decades for service. it would remove postal workers from the existing federal workers compensation system and establish a postal specific system that reduce benefits, those provided under current law. there's more sensible alternative to the approach this morning i introduced an dislifer

act. which has cosponsored in the postal service to operate more like a business it was meant to be. my legislation would give the postal service increased operating responsibility while ensuring revenue meets expenses. specifically it would create a new chief innovation officer in the postal service charged with leaning the development of products and services that enable the postal service to capitalize on new business opportunities. compassion manner that respects and honors these employees dedicated service over the years. if we reject the extreme measures that --

postal workers and increase the debt and destroy existing services, i believe we can identify common sense provisions that provide common ground solutions. t possible to develop and finalize legislation we can sport. i urgent the chairman to choose this path. i ask for unanimous consent to enter to the record the statement of the testimony from the following, the naicialt associates of postal supervisor, the national postmasters. the active and retired fellow employee's action -- association. without objection so ordered. >> that i yield back. pursuant to our practice of posting legislation and draft legislation on the site, and

because the draft was circulated to us the following are at counsel right now for redrafting in the bill. something that ranking member suggested. will have an higher experimental product test cap added to it. it are have travel reporting for the potes l governor arch prc. it also will -- agreement related to reduction. it will; however, require that those be placed or harmonized with the rest of the federal work force at time of new contract but in no way affect current contract with the life of the contract. it will have a work force specific pension assumption.

i realize it's unfair to -- i don't have specific language, but i want to make sure those particularly the ones that the ranking member included in the draft legislation will be employed. >> okay. >> thank you, mr. chairman. you're saying the things you named are what? >> those are being placed before the bill comes to the committee. those are being placed to the base text of the bill. >> i see. >> we circulated draft legislation and been up on called madison. we have public comment in addition to yours. i want to make sure that the committee understands as you said we were 85% last year with the senate, even though we had to start over. we want to get as close to that 100% as we can before it comes to the floor. so before it comes to the committee. so all of those will be changed prior coming to the committee if

there be any need to offer those. there are additional items that both sides want to offer an amendment. >> thank you. we got chairman of the subcommittee on postal. >> thank you, mr. chairman issa for allowing me to make an opening statement. as chairman of the subcommittee on the federal work force u.s. postl service. we have held hearings with the postal service itself, customers, suppliers, and workers. today's hearing will focus on the big picture. postal reform. finding ways for the yieghts postal service to stand on the own two feet. to work harder and martyr for the future and not become a burden on taxpayers. it's about finding innovative solutions that will make the united states postal service sound. the postal service this committee, and all of congress cannot bury our heads in the sand ignoring billions in deficit, technology changes that are lowering demand and increased competition and huge liability for future employment benefits. even without the prefunding

contract postal service is losing an excess of $5 billion a year. they're getting closer to not be able to meet the payroll. moving to november saturday delivery and they can save as much as $8 billion annually. these are only two changes that need to be made when mail volume continues to decline. i'm hopeful that together we can use what we have learned from past mistakes in work in a bipartisan manner to identify ways that will make the postal service a more successful and viable service for the 21st century. thank you very much. >> gentleman yields back. we recognize the gentleman from massachusetts. >> thank you, mr. chairman. to help us with our work.

plch, the united states postal service and our dedicated postal employees have long stood as a shining example of essential government service. year after year, when polled when the american people have voted postal clerks our mail handler, letter carriers and summers have among the most trusted and appreciated government employees. importantly, the postal service is not defined bipartisanship or politics, rather employees are governmental mission to ensure the free flow of information, communication, and commerce. toward that end, the agency delivers mail six days a week to over 152 million residents and box office boxes. aour mail continue their commitment to safe guarding the continuity of the processes and delivering operations.

it's out of respect for vital national role for the united states postal service and the exceptional work force we must ensure the most trusted government institution does not fall victim to customer partisan gridlock. the violent of the postal service depends on our willingness to dependent on both sides to set it aside and work toward reform legislation. regret belie, however, the discussion draft of the postal reform act of 2013 that was recently circulated by the chairman fails to reflect the wide spread consensus that exist along postal stakeholders and the congress regarding certain practical step we could take to place the postal service on a more solid financial ground. notably, right off the bat and measuring the federal employee time and system surplus, the chairman's draft bill would not require the the opposite

personnel management to consider the unique position, salary, growth and demographic characteristic of postal employee when calculating the postal service federal employee retirement service. in december of 2012, the office of the postal service inspector general estimated the use of the postal specific rather than government wide assumption would result in a $12.5 billion surplus which they could apply to pay down the tissue i are debt and satisfy over obligation. the approach has received the strong support of the postl union, associations and mailers in my own legislation hr961 to require the use of postal specific formula calculating the surplus received a support of over 130 member of congress including nine brave and excite ingly wide republicans. i would noted the language is

considered in hr2690. the post the reform legislation our ranking member introduced last night in which i'm a cosponsor. chairman issa's draft mandates, urvetion however is a serious of drafts that is far reaching and unnecessary to spoas l operations i strongly believe would send to send the agency further to the red. it would comprise delivery standard and undermine the postal work force. in particular the proposed bill would immediately reduce it to five days per week and eliminate a essential competitive advantage. seeks to to phase out postal service feature by replacing door to door delivery in favor of curb side and contemplates a shift to neighborhood cluer boxes. more often the chairman's draft would expetite the review process for consolidating and closing and limiting the

opportunity for the meaningful community and stakeholder input. it would require the abrogation of existing collecting bargaining agreement that contain reduction and forced provision. despite the fact the contract are the end result of extensive negotiations in which the unions agreed to very, very, very modest increases in wages and benefits. those were negotiated between postal management and employee representative. while i appreciate the opportunity to discuss your draft legislation in greater detail prior to next week ease businesses meeting. i do not believe that the bill in the current reform would set it on a path toward football -- financial stability. t my hope today's hearing will allow us focus on the collective attention on those areas of postal reform that can form the basis of a truly bipartisan postal reform package for the sake of the postal service, our

postal stakeholders and the american people. thank you, i yield the balance of my time. >> thank you. you went fifteen seconds over. i know, you did the best you could. hopefully you did recognize that two of your points we are changing. those will be incorporated. for the remaining ones, that's what markups are for. we go to the first panel, and adrian, you are called a panel here. the honorable smith who represents nebraska's third district. the committee's rules the witnesses be sworn in. we do not require member to be sworn in. congressman smith, you're recognized for five minutes. >> thank you, good afternoon. thank you for the opportunity to participate in today's hering -- hearing. we need solutions. i come before you today as nebraska's representative to discuss the importance of the united postal service to our rural communities.

the postal service continues to face a severe fiscal crisis, losing $25 million we are per day. congress needs to ensure it upholds mission to serve all americans while addressing long-term challenges. throughout rural america the post office is the center of the community and link to the rest of the country. and even beyond. every day i hear from constituents who are concerned about losing access to basic mail services. those in my direct are among the most reliant on the postal service. i myself reside a short block from my local post office. i know, firsthand the impact it has on small town american. it's not just a convenience. it's pathway to information, producting with med medication and service which is are essential to our daily work and lives. congress must enact false reform that provides certainty for

consumers and businesses alike. commercial options are already scare in rural america. it may cause potential businesses to lay roots elsewhere. considering fork more than 3,000 small mail facility in an attempt address the budget shortfall. included on the list were 90 locations in the entire state of nebraska with the great major it in the third direct. location were prosingled out. despite the minimal savings which would have within achieved by closing the facilities. in fact, shutting down the smallest $10 10-,000 post offices in the yieghts only would save the postal service roughly 3% of the cost of operating more than 31,000 post office nationwide. z co-chair, i spent the last two years closely working with the

postal service, stakeholders, and this committee to ensure rural post offices are not unfairly targeted. because of the importance of continuing this bipartisan effort, last week i introduced securing access to rural postal services act. my democratic co-chair as well as rural caucus and congresswoman cynthia both are original cosponsor of hr2615. it would cap small post office -- and consolidation executed by the postal service in any given year. the bill also would set guideline for close or consolidating any post office toker ensure those effected would maintain access to the postal service. it would be required to provide 60 days notice of the intention to close or consolidate a post office. in addition, it would need to

survey effective customers to determine their preferences for alternative access to postal services. or if the preferred option is determined to be cost prohibitive. it would be through a different mean and give written explanation for why the surveyed option was not possible. the postal service should focus on changes which provide the greatest savings with the least service disruption. my measure allows them flex tobility pursue needed cost cutting reform while ensuring they are not affected. i'm please the securing access to rural postal services act will be included in the comprehensive bill the postal reform act of 2013. i thank them for recognizing this unique set of challenges facing our rural community and the willingness too work with me on the important issue.

i also want to acknowledge constructive input i have received over the last two years. i appreciate the many ideas chaired with me -- shared with me from industry workers postal workers themselves and patron of the postal service. congress must support a you are bust, efficient, and dynamic postal service. without responsible legislation, the postal service will not be able to return solvent sincerity. i'm confident the committee will produce a comprehensive reform bill which provides standard for consumers, opportunity for businesses and stability for the postal service. i'm committed to continuing to work with this committee with member on both sides of the aisle to ensure rural americans continue to be an important part of the discussion on postal reform. thank you. >> thank you. thank you to the cbo scoring of anest -- rural post offices in the neighborhood of $300 million we

fully concur in the entirety is intended to be folded to the base bill. we recognize, as you do, there are literal i are dozen of fundamentally alternative to an closing of post office including part time and other technique that would allow service at the appropriate level. the bill is amendmented to 5 percent as hr115 does. the total number of outright closings. i have one question for you. we don't usually ask questions. since you mentioned rural, how many door deliver i ares would have in a direct like yours? >> i don't have that number with me. >> wouldn't it be]ly zero? wouldn't almost everybody go down to the curb, go down to the front, a box and pick up the mail? isn't that substantially how it work?

all of your residents get the mail? >> i wouldn't say all. keep in mind, it's not uncommon that someone would a five mile long driveway in ranch country which would be the mailbox at the end. perhapses that's cheaper to have it on the paved road than five miles down the driveway. >> it's our intention to make sure that we do not make that drive one foot further for any residents. >> i un. >> do have have any questions? >> mr. smith. we thank you. we'll see you on the floor in a few minute. >> thank you. we'll set up the second panel. it will be a short break. [inaudible conversations]

[inaudible conversations] i thank the witnesses for their patience. hopefully you have heard from

rural america and there will be no disagreement here since there seems to be none. we welcome the second panel. the distinguished postmaster general and ceo of the united states post office. mr. joel -- [inaudible] joel -- i know you are well enough. i should get the last name right. chairman, president, ceo of quad graphics. one of the largest printers, and obviously one of the large stakeholders in anything we do. and mr. cliff is president of the previous announced the second largest american postal workers union. we're pleased to have all of you and your testimony is important and will be listened to in the markup. pursuant to the committee rules, we would ask that you please rise and raise your right hand to take the oath. do you solemnly swear or affirm the testimony you are about to

give will be the truth and the whole truth. please, be seated. let the record reflect that all withins answer in the affirmative. i will warn you all that about the time donahue finishes will will be a bell. it will let us get through all three of you and we'll break far period of time necessary to take the votes, and unfortunately the once in a congress picture. members, being politicians are not likely to return until after they get their picken taken. [laughter] >> thank you, mr. chairman. good afternoon, good afternoon ranking member, cummings. member of the committee. thank you, mr. chairman for calling this hearing today. let me begin by thanking committee for taking on the important challenge of restructuring the business model of the postal workers. they continue to face systemic financial challenges that cause the business model that does not allow to adapt to change in the marketplace. we cannot pretended these

marketplace changes are not happening or that they do not require fundamental change to the business model. we need comprehensive reform now. in the past 18 months they report the $189 million in losses. to the treasury and without legislation this year belle forced to default on $5.6 billion in payment due to the treasury on september 30th, 2013. our liquidity also remains dangerously low. our financial position should not obscure the fact that the postal service plays a vital role in american commerce that delivers great value to the customer and the package business is growing and very strong and our marketing mail will remain strong for the long-term. unfortunately decline in the first class mail in effort we have taken to adapt in the lost revenue. we have taken aggressive steps to reduce costs. since 2006 we reduced our annual

cost based by over $16 billion. we reduced the size of our work force by more than 200,000 employees that consolidated more than 350 facilities. modifying ours right now in operation of 13,000 post office and eliminated 21,000 deliver i are route. we have an able to accomplish the changes because of the effort our employee. it's to their credit that the organization continues to provide high level service to the customers and community during such change. americans deserves a postal service that can adpapt to the a basic marketplace changes and invest in the future. it needs a postal service that evolve in change over time. the postal service is the plan that can meet the expectations and requires fundment tal change in the way we currently do business. mr. chairman, we're seeking the authority under law to control our health care and retirement costs. we can completely eliminate the need for prefunding benefit if

we can move to the proposed solution. our goal should be the elimination of any prefunding. this is achievable. the employees are retiring as well. given the change that will occur in the industry in the coming decadessability it's unfair to the postal service and future employees to maintain the system. with the authority to move to a schedule that includes six day of package delivery and move days they can save nearly $2 billion annually. the american public supports this schedule and financially responsible step to take. we require more stream line government model and develop

price and implement products quickly. and seeking to refund approximately $6 billion in overpayment to the federal employee retirement system. if congress can pass legislation that addresses each area question close a $20 billion budget gap by the year 2016 and operate on a financially stable basis. if we conot gain that fleckability, our unsustainable loss will continue and we'll risk becoming a significant burden to the american taxpayer. that's a simple question to ask about the legislation the committee in the process of developing. does it enable $20 billion in savings by 2016? we believe our plan meets the test and provides responsible roach for customers and employees. we cannot implement without legislation. mr. chairman, we are quickly moving down a road to leads to a straight financial -- the postal service can be a bridges over that. if we build the bridge properly they can have a bright future.

you can adapt adapt and better serve the changing mailing and shipping needs. and be a more powerful for economic growth and profitable and operate without burdening the american taxpayer. however we can't get to the future if we don't build the bridge. we need a bridge that gets all the way to the other side. half measures are about as useful as a half bridge. we need legislation together with our plan changes that enables the postal service to save the $20 billion i strongly under the committee to pass comp hennive reform legislation that grants us to the authority financially responsible manner and creates a fiscally sustain polled. let me conclude by thanking the committee for the willingness to address these tough issues and pass comp hennive postal legislation this year. postal service is a tremendous organization and need your help. thank you.

thank you. thank you, mr. chairman issa and ranking member cummings. they are taking leadership role and pursuing reform thatted would lead to the financial stablization. in some key respect the draft are close and others they there are disagreement. it's my hope and the printing and mailing industry will lend strong support to earn bipartisan approval of the necessary reform. my company graphics has grown over the past forty years to one of the largest printers.