the commerce of the highway with less cars on the road. i could put plug-in right now than we would like to get funded this includes our national economy and federal government. .. economy to the federal government but also for all of our communities. it's also a matter graham bierman and we have heard that many times before. modernizing our transportation system we provide a much more efficient way to deal with our

energy needs and friendlier towards their environment. so why are we doing this? we have got to make the tough decisions. the tough decision has to be made in conjunction with our colleagues on the senate finance committee and all the members. i happen to serve on both committees that we need to have the revenues necessary to support a long-term surface transportation reauthorization. we have to recognize the realities of the current revenue flow into the transportation trust fund is inadequate as it's based on the gasoline tax in the we have been very effective at bringing down the volume in regards to the use of gasoline and or efficient engines alternative ways so we need to look at ways we can have an adequate source so i hope he would be open to things such as carbon fees or other ways to get the revenues necessary but i

know transportation is a bipartisan issue and senator inhofe has been one of the great leaders moving forward on infrastructure. senator vitter also strongly supports this so let's also try to find a way we can get the revenues out better adequate so we can have transportation reauthorization that is befitting of the record of this committee and of the country. >> senator thank you and erase a good point. a few of our member said on finance which will be extremely helpful working with senators wyden and hatch who both have expressed interest in working with us. now we will send -- turned to senator sessions and i will remind you when we have four votes at 11:30. >> madam chair thank you for the hearing. it is important. the infrastructure situation is facing a financial challenge in the future and we are all

worried about it. i believe it represents a valid legitimate expenditure of federal dollars. a lot of things we do around here are not valid and a legitimate federal interest but certain infrastructure problems certainly are. we have the director of office of management and budget testified before the budget committee yesterday. just for example today he testified that last year interest on the debt that we pay out of our revenue that comes in was about $230 billion. he projected last year at the end of 10 years that would rise to $830 billion. this year he says in 10 years from today in annual interest payment will be $890 billion in 2024. this is a stunning diversion of money from unproductive use,

from productive use to unproductive use and the result and a big part of the problem is that huge deficit we have been running up in the last few years. we have almost doubled the deficit in a few years we will have double the deficit since 2007. i know everybody wants to spend money and i know you all have talked -- you want to spend that mr. elmendorf told us that we are on an unsustainable path. you will hear the deficits are going down. they will go down for the next two years but after that they start on an uncontrolled study path and the deficit in the tenth year will be a trillion dollars again. so we are in a real difficult place. i would say to you everybody comes before us with good projects that they want to spend money on. i would say to you those who

believe in highway and infrastructure should never forget how you were taken to the cleaners with the stimulus bill. we spend $840 billion on the stimulus bill. only 40 of the winter roads and bridges. we went into every kind of social program and mr. elmendorf told us when it passed that you will see an increase in gdp in the short-run but over 10 years carrying another trillion dollars in debt will actually reduce gdp over 10 years. i would just say to you colleagues and to the witnesses today we have got a big challenge before us. if we don't watch it it can put us in a position where we have another financial crisis and mr. elmendorf warned us that could happen. our debt situation is in the red zone so madam chair the bill we

passed last year i think we stayed within the reasonable limits of the budget. i know you tried to do that and senator vitter worked hard on it and senator inhofe. we were able to maintain a level of funding the minimal level we thought was necessary. that is an even bigger challenge this year and i look forward to working with you. >> senator same here and i happened to be here when we did now is the budget and i think we can do it again if we are smart about it but the important thing is we have that self-sustaining trust fund which is so critical. i have always supported that. that is operational. we spend what we take in. we have to be smart about it. of course we have long-term problems we have to deal with so it is my pleasure now to call on the ranking member of the subcommittee that has worked so hard on this. >> thank you madam chairwoman and ranking member vitter for holding the hearing.

i appreciate and share your commitment to ensure the highway bill program continues. i want to thank our panel for being here today to testify. we can get the business and labor communities at the same table that sends a strong message to all members of congress of both parties that this must continue. we need more red white and blue jobs in states like wyoming california and louisiana and across the country. i think setting up road locks on construction problem -- projects with excessive tape doesn't create meaningful jobs we need around america. for a state department of transportation and contractors the highway program is already complicated enough. we need a program that cuts down on burdensome paperwork and puts people back to work. the highway trust fund needs a solution that is reliable and responsible. the question before us is how we accomplish this in a fiscally responsible manner. in order to meet the highway

systems national needs rural states must have flexibility to use federal dollars that serve the national interest. we need to protect the taxpayer and ensure states continue to execute the transportation plans wyoming liked many of our other rural states is a bridge state and it's critical we maintain our nations rage states that move the flow of commerce across america so madam chairwoman i hope this committee will hold more hearings on implementation of map-21 and i look forward to bringing the rural perspective as we write the next reauthorization bill. thank you rang -- madam chairwoman and ranking member vitter for holding this hearing. >> thank you for your leadership as well. now it sure time so so let's just get right to it. we call on tom donohue to begin from the chamber of commerce and ceo. >> thank you very much chairman boxer, ranking member vitter and

the distinguished members. we appreciate so many of you are here. as many of you said this morning reauthorization of map-21 promises to be a difficult fight but it doesn't have to be. in fact there is a broad consensus on a number of fundamental principles. we all agreed that are infrastructure system is a critical national asset that it drives growth and job safety mobility trade and enhances global competitiveness. we all agree that we are running out of money just bomb the system. we all agree that the federal government must take a leading role in making sure our infrastructure system contributes to a strong economy. we all agree we need a predictable, stable and growing source of revenue for today, and immediate funding solution for tomorrow and a long-term we need

an expanded and new system. when you look at the big picture the simplest and most straightforward and most effective way to generate enough revenue is by increasing federal gasoline and diesel tax. remember it's 19 years or 20 years since we increased the federal diesel tax. the gas tax and this is what i was going to say has not been increased since 1993. cars are more fuel-efficient and trucks are much more fuel-efficient. i know something about that you remember. people are driving less and inflation is eating in to purchasing power. as a result the highway trust fund is simply going bankrupt. we are already borrowing billions of dollars from the general fund. next year there will be a 13 billion-dollar cash or fallen by 2020 it could be as much as

$100 billion. the modern increase in the gas tax phased in over time with her fight the necessary funding, preserve the important user pays principle and provide needed stability. how do we do that? first let's start by having some courage and showing some leadership. for once let's do what's right, not what is politically expedient. second let's educate the public and your fellow lawmakers. polls show opposition against increases are significantly overblown. the san jose university researcher recently found that 58% of the public would support a gas tax increase if they knew where it was going and how it was going to be spent. and it was going to be applied to building roads and bridges and transit systems. voters want to know where the money is going and that it's not

going to be wasted. far too many people are unaware of the important reforms that eliminated earmarks and pork barrel spending long associated with infrastructure funding. let me say parenthetically occasionally it helped get a vote but with that not here we are going to have to have some really good arguments. let's also be clear, i often thought after the committee decides all the issues they are going to fund their members ought to be able to pick one out in order to go home but let's get into that another day. let's also be clear about the consequences of decreasing these investments. it meets higher costs for goods more congestion and increase tax events as well as reduce mobility and reduce competitiveness. business is absolutely committed to simply pursuing this education effort. and third let's get busy

building political support. on this panel you have the combined sub port of business labor construction shippers regulators and in addition to rockers and yesterday i had a meeting with the leaders of the american trucking association and the leaders of the aaa. they would significantly support a modest and thoughtful increase to the gasoline tax and to the people that are here this is getting to be a rather supportive group. it's interesting to know six states three with republican governors and three with democratic governors enacted to increase their overall state fuel taxes. the sky didn't fall in their economies have not collapsed. vote republican and democratic residents have approved moderate gas tax increases including

ronald reagan so it can be done. increasinincreasin g the gas and the fuel tax is the right answer it's tough but it's doable. let's keep in mind that public money is only part of this equation. we must increase private investment as well. the private sector is prepared to pump as much as $250 billion into the public private partnerships for p3's if only certain barriers with a removed. we also must continue to aggressively root out waste in the system which members indicated is underway much of it caused by permitting delays as well as to make sure funds are spent on genuine priorities. long-term the chamber is willing to entertain different proposals for new and additional public funding mechanisms however currently we don't see any way to support any proposal that eliminates the federal role,

undermines the user pay principle or unfairly singles out specific industries to foot the bill. very quick lee a couple of quick thoughts in conclusion. we know that won't work. eliminating a dedicated source of federal funding means higher transportation costs more accidents and poorly maintained roads. if we give up on the highway trust fund and rely on the general fund we will never be able to execute long-term capital projects. we would have to cut other programs and engage in more deficit spending and we would have to debate funding every single year. i believe madam chairman the responsibility the states means we will lose our national system. none of these the purchase of ports a sustainable growth of funding and we need to pass a long-term authorization and the

people at this table are ready to help you. thank you very much. >> we greatly appreciate that and it's my honor to introduce mr. richard trumka president of the afl-cio. >> thank you chairman boxer and ranking member vitter for having me appear before your committee today. three years ago tom and i appeared before this committee asking for a reauthorization of the surface transportation bill and since then he and i have spent more time than either one of us would like to admit trying to get this done. while we are not quite ready to schedule vacations together yet we really are willing to come together and anxious to come together to get this important issue solved for the good of the country. reauthorization of the surface transportation bill has been the

most important jobs legislation that congress considers and it's a very big priory for us. the economy has improved and job creation remains sluggish. the construction sector alone is down 1.6 million jobs from previous session levels. we not only need jobs but good jobs. it's estimated that each billion dollars of federal investment in transportation creates 35,000 well-paying jobs. the type of career jobs that support a family, a secure retirement in a middle-class life. these investments not only create jobs but spur economic growth and ensure our country's long-term economic global competitiveness and improve the quality of life of our citizens. now for those in congress still pushing an austerity agenda when it comes to the infrastructure

love me just say this. if your house has a leaky roof not fixing it won't save you any money. like a leaky roof delaying needed infrastruinfrastru cture investments will only cost us more in the long run, not less. i recently traveled to china and i was stunned at the speed at which our largest competitor is progressing. china has been investing heavily in this infrastructure and the results are pretty dramatic. during my trip to shanghai i visited the deep water port of the world's largest and busiest container shipping port. the port like the high-speed trains that travel between china cities is the key investment in china's efforts to up grade its infrastructure and it helps them keep up with the countries growth of exports. to get to the port i traveled on

a six lane bridge that is 20 miles long connecting shanghai to the islands where the port is located in the bridge was completed in two and a half years. 20 miles of six lane bridge over the china sea to an pen island into a half years and employed literally thousands of workers. prior to the project nothing was there but a sleepy fishing village with some islands off in the distance. the first phase of the project opened in 2000 or m. by 2013 china had accomplished its goal of having the world's largest port. i might say the same thing about high-speed rail. we both read we would do high-speed rail a few years ago. right now the u.s. has one single mile of high-speed rail in the chinese move more people

than our entire domestic airline industry by high-speed rail right now. so america can do it. we can do it and we can do it better. i didn't come here today to rehash all the data regarding our nation's infrastructure needs but frankly the facts have been reported. they have been studied and they have been discussed to death. the conclusions are always the same. infrastructure investments are vital for job creation, economic growth and global competitiveness. what remains to be determined is whether that information will be acted on what kind of country we will leave to our children and their grandchildren. the highway trust fund is at a crossroads. failure to act will mean our transportation system will decay

further. construction workers will stay on the bench, supply chain and transit workers will lack steady work in their economic and global competitiveness will be diminished. many funding ideas have been proposed but few of them have been acted on. other proposals have limited application. that leaves the fuel tax or some variation of it as the main source of funding. raising the revenue will not be easy regardless of where it comes from. but to be blunt, we can't afford to bury our heads in the sand. a bridge that is deficient today will not be any better tomorrow. congress must come together to enact a robust and a long-term authorization. if business and labor can come before you united on this issue and we are united on this issue,

despite our sharp disagreements on a variety of other matters, i think that should tell everybody something very loudly. we need to be the america that can, not the america that can't. we are ready to help in a bipartisan way get that done because it is so absolutely essential for the well-being of our country and its economy. thank you very much and i look forward to your questions. >> thank you very much mr. trumka. our next speaker i want to say congratulations the new president of the american association of state highway and transportation officials and he is also the secretary of the transportation cabinet so we are very pleased to meet you mr. hancock. >> good morning chairman boxer ranking member vitter and distinguished members of the committee. thank you for the opportunity on behalf of aashto to share our

views of on the importance of robust federal investment in surface transportation. the potential near-term impacts of the cash shortfall in the highway trust fund and the longer-term impacts associated with uncertainty and instability of the highway trust fund. i have to say i'm very encouraged by the remarks i have heard this morning. i would like to share two points with you. first the threat to the states the construction industry and the overall economy is real. it's closer than originally estimated. we could face serious economic disruptions as early as this summer if the u.s. d.o.t. delays reimbursement to the statecraft of projects already underway. unless congress acts to increase the highway trust fund revenues for provide additional general fund support the states will be unable to obligate any new federal funds in fiscal year 2015. in both cases there will be immediate and direct impacts to

the states economies with lost jobs and permanently shuttered businesses and there will be substantial additional economic and social and environmental costs associated with cancer or delayed projects. if congress does not act in local them private partners cannot generate sufficient funds to fill the structure funding gap. the federal highway program apportions $40 billion a year to the state d.o.t. for roads and bridges however actual federal dollars are not provided a front but rather when work is completed and the state submits a request for reimbursement reimbursements to the states are made daily. on january 15 u.s. d.o.t. secretary fox announced the highway trust funds highway account is likely to run out. to prevent insolvency they may stop reimbursing states are daily basis and made start reimbursing once a week or once every two weeks.

it forces the states to delay contractors payments. while congress took care the issue five years ago with the general chun -- fund transfer states are concerned with the impact with the same situation as early as the summer. if a similar scenario happens this year the contractors in many roulan prompt payments for the state may be unable to pay their employees subcontractors and supplies. for some construction businesses which survived the recession they are still operating on the slimmest of margins. this could simply be the last straw. when aashto testified before this committee in september we thought the highway trust fund would stay solvent through the end of fiscal year 2014 but it now appears congress will have to act before the august recess to ensure the highway trust fund will have enough money to reimburse the states for past commitments. as congress considers ways to adjust the short-term process of

mapping all to pay for projects that are already committed it should also consider a long-term solution that keeps the highway trust fund solvent well into the future. without a long-term solution states may not receive any additional federal highway and transit funding in fiscal year 2015. if new federal highway funding is not available or federal funding is not available in 2015 much-needed highway and transit projects in virtually every community in every congressional district will either be delayed or canceled outright. these are projects underpinned economic development. cutbacks on contract will be missed opportunities causing a negative domino effect on the construction industry employment except he at a time when industry v. is being getting to rebound after one of the hardest hit segment in the recent recession. infrastructure investment is critical for long-term economic

growth increase productivity employment household income exports and overall quality of life. congress can address long-term solvency solvency of that which was done by substantially reducing surface transportation of boosting revenues for some combination of the two. we and others have developed a long list of revenue options. we believe that a minimum we need an approach that will allow us to sustain map-21 investment levels as adjusted for inflation. we believe it's possible to reach this level without placing a financial burden on the traveling public. without aashto there will be devastating economic impacts on the virtual elimination of the surface funding in 2015. there will be further funding reductions in the years beyond. therefore we believe the only solution is to find and implement a viable set of for revenue solutions that will prevent this summer's highway

shortfall and ensure the long-term solvency of the highway trust fund. aashto looks forward to working with you to address this critical situation we very much appreciate the opportunity to testify before you today and book forward to your questions. thank you. >> thank you so much and now it's my pleasure to introduce the president and ceo of road and transportation builders association and a key ally of ours as we work through the last highway bill. >> madam chairwoman, chairman boxer senator vitter thank you for inviting artba to participate in this hearing and thank you for your leadership on map-21 as well as the current legislation. one number alone provides ample evidence to the value of the surface transportation program. today tracks carrying freight worth more than $11 trillion over the nation's roads every

year. in more than three-quarters of that truck travel occurs on the roads that complies with the retro aid system. without the federal investment in these roads we put tracking mobility and productivity and $11 trillion in economic activity at risk. we believe one of the federal program's biggest problems is the government at all levels does it toward job of telling the american public how their federal gas and diesel tax dollars are invested each year. we believe the public would he impressed in wide base of port this federal program if they knew the full story. i asked our economic team to find out how the public gas tax dollars were put to use in 2012. a year they that did not include any stimulus money. unfortunately took the freedom of information requests and computer analysis of literally millions of data points to

provide information detailed in our written testimony. here are the highlights. and it's high time the public starts hearing about it. in 2012, the federal program helps fund 12 thousand 500 six capital improvement projects, 7000 some roads 2400 bridges 2800 roads safe he all focused on the system that moves most of that $11 trillion of economic activity i just mentioned. and the 12,000 does not include right-of-way or engineering projects. these are projects in every state that can be identified by name, location and how much is invested. all the public knows is that the system is not nearly as safe as it could be, they waste precious time and traffic congestion and car and truck damages are caused

every day due to unacceptably high a percentage of poor road conditions. the major reason for the system's problems is we have a 2014 program that is operating on 1993 value dollars. as you have already heard roughly seven months according to the cbo the highway trust fund will be unable to support any investment in new projects. if 2012 is a guide, that means more than 12,000 highway bridge and safety capital projects across the nation most important to our economy could be lost. artba continues to advocate new recurring user fee revenues for highway trust fund investments as the most straightforward solution for congress could find additional resources elsewhere in the federal budgets to stabilize the trust fund as it was done to support map-21. cbo data shows that will require

by the way on average 16.3 billion annually just to preserve existing levels of highway transit investment. my comparison over to your period the recent bipartisan budget act of 2013, the murray ryan budget deal reallocates resources to increase the non-defense discretionary spending cap by an average ironically of some $16 billion a year. here is where the announcer would say spoiler alert. that means as illustrated in figure 4 in our testimony fixing the highway trust fund without generating new revenues would require the equivalent of congress passing and the president signing a 2013 level murray ryan budget deal every year, every year. just to keep the highway transit broke ground where it is now.

that is one painful alternative scenario. thank you very much. >> thank you so much and it's my pleasure to welcome jay timmons president of ceo of the. >> thank you chairman boxer senator vitter and other members of the committee. infrastructure batters during every step of the production process from receiving inputs to shipping out products to markets at home and to our customers abroad. in addition manufactures are vital suppliers to the transit road tolling industry providing rolling stock engines concrete machinery aggregates barriers signs the equipment and other materials. every dollar spent and another has been a lot of statistics here today but they all do matter, every dollar spent generates 39.5 cents and manufacturing. for manufactures infrastructure

is indeed a competitiveness issue. unfortunately a nation's 20th century infrastructure and some of it is in fact even older is not meeting the needs of our 21st century economy. i hear concerns about the state of our infrastructure from members constantly and consistently. from the world's largest multinationals to family businesses up and down main streets across the country. they all recognize our aging infrastructure is a significant impediment toward nation's competitiveness and our ability to maintain our mantle of economic leadership. last year a&m partnered with building america's future to survey manufactures about their perspectives on the state of the infrastructure in the united states and is the chairman referenced in her opening statement some 70% told us america's infrastructure is in fair or poor shape and needs a great deal or quite a bit of improvement.

manufactures recognize the federal government's critical role in funding the nation's infrastructure as well. 67% say infrastructure so important that all options to fund it must be on the table. two-thirds doubt that it is positioned to respond to the competitive demands of the growing economy and that's important is manufactures rely on efficient infrastructure to reach growing markets abroad. has her survey demonstrates reaching these new markets is not easy for new manufactures in the united states. roads bridges ports and more are in dire need of repair and modernization. on behalf of our more than 12,000 members we urge lawmakers to address these challenges and adopt a multiyear fully funded surface transportation bill that offer certainty of from the structure projects and improve the facilitates trading creates

jobs. equally as important to believe congress must bring the federal highway trust fund to improve condition of solvency and long-term sustainability. the need to keep the highway trust fund solvent extends far beyond the state departments of transportation and road elders. funding for roads bridges and transit systems provide great value and represents investment in our economy and global competitiveness. manufactures have frank up and frustrated by policymakers who meter calls with growing skepticism. as we have seen with previous infrastructure bills delays in multiple extensions are commonplace and send the message that the united states is simply not serious about growth and competitiveness. i know it's a tall order in our political environment that is so highly charged today but america's manufactures need bipartisan leadership to help fix the problem and frankly we are encouraged by the signals we are getting from this committee. we need to move past the federal government's role.

the states alone cannot address the deteriorating condition of our roads and bridges are remedied the 101 billion-dollar costs associated with traffic congestion. manufactures are counting on congress to fulfill its will establish responsibility facilitating commerce in the united states. chairman boxer no pun intended that we have a long road ahead of us and we really appreciate the committee's attention to these important issues. >> well thank you. i cannot thank each of you enough. i'm going to ask unanimous consent to place in the record letters one from the associated equipment distributors that urge immediate action to ensure the highway trust fund's long-term solvency and the second is the economic importance of maintaining federal investment in our transportation infrastructure from the international bridge tunnel and turnpike association. without objection i will put those in the record.

we will each have six minutes to ask you questions. my first question is really an unusual one because it's just a yes or no from each of you but it's not a trick question. we'll each of you be willing to speak directly with senators wyden and hatch whether it's on the phone or in person as soon as possible? >> yes. >> yes. >> yes. >> yes, already have. >> absolutely. >> okay, second round. i can't tell you how important it is because they have so much on their plate. they want to be helpful but i'm not so sure that they have scheduled a hearing because we had to change leadership. that would be fantastic and what each of you agree that what mr. timmins said is right that we need certainty with the

multiyear bill. do each of you agree that we need certainty with the multiyear bill? >> yes. >> absolutely. >> yes. >> unquestionably. >> i read. >> around here sometimes folks don't so i think it's really great. mr. trump that we are all a aware that the recent global recession-ravaged many sectors of economy and i remember being with you at a rally in los angeles where the construction industry workers were i mean just so hard hit in worried about the future of their families. could you describe for us the economic environment your members currently face to help put in context the consequences of failing to address the highway trust funds pending insolvency? >> let a start on the macrosense and 16 years and to the so-called recovery we are at an

unemployment rate that was higher than the highest point of the 2001 recession and so six and we are still higher than it was in recession. we have 1.69 construction jobs as i noted in my testimony that are going from pre-recession levels. we have not filled them yet. in some areas unemployment hovers in the 20% area. we still have people working reduced hours. the results of that fat is a strain on retirement plans and health and safety plans and health care plans. our members are struggling. we are losing skilled workers because they can't make a living. there is no planning and no ability to plan ahead. they are still hurting plenty and that is why we need this will not just to be a patchwork or a short term solution but a long-term solution so that

employers can plan, so that states can play in, so the that we can do long-term projects that the country absolutely needs and have the insurance that the money is going to be there. >> thank you for painting that picture. i'm going to ask doctors ruane because from the business side you are -- represent the builders. could you discuss how the transportation industry would be affected if no new projects over 12,000 projects using 2012 is an example is how many projects we would fund in 2012 if we didn't have that in fiscal year 2015. put a human face on the businesses that you speak for. >> the impact of that kind of scenario would be devastating. we are already at over 10% unemployment in that set her as we sit here today down from where it was five or six years ago.

we are still at double-digit unemployment and the metric that is used often as 35,000 jobs per billion. we lose that probe ram in fiscal 15 you will literally see hundreds of thousands of workers lose their jobs and by the way that is already happening. in the marketplace were number of states have announced their intention that was cited in mike's testimony a couple of states have publicly said that so people are not hiring now. they are already pulling back even though we are at the height of the construction season coming up. they're holding back because of the uncertainty of the marketplace right now with what the congress is going to do with reauthorization. >> that is extremely alarming that already we are seeing this and working hard to move quickly to restore faith out there and why it's so important for us to

work together with the finance committee. congressman shuster wants to move as well. i would turn to mr. hancock from kentucky's perspective as well as all of the states representing a new position. how important is it for state departments of transportation to have stable reliable and predictable funding levels for five years or more? >> madam chairman it's incredibly -- >> turn on your mic. >> i'm sorry. it's incredibly important to the states. the states simply cannot function functionally plan and environment where the target changes day by day in terms of funding. as you probably know it takes years to get a project off the ground and actually built. if funding is a question every step of the way it takes longer

so the states really are having difficulty with adequately planning knowing when the money is coming and knowing when we will have the ability to put the money to work. >> thank you. my time is running out but i have to finish with mr. donohue. why is this issue so important to the business community that the chamber would take the position of raising user fees for transportation and that's unusual. could you explain why you are chosen to do this? >> i don't think it's unusual for the members of the chamber of commerce to support these user fees. people that run the trucking industry understand and they run 400 billion miles or something like that with 3 million big trucks every night and they understand that they don't have the facilities to do it in the safe and effective productive way aaa is taking i think it very in light position

recognizing that people are driving all over the place. as we have heard today from the panel the business community provides the resources to those the facilities, the roads the bridges and the ports. the business community ills them. the business community moves on them and if you want to look for the single biggest improvement in my opinion in u.s. efficiency in recent time it has been what we have been able to do in the supply chain from raw materials to the finished products and everywhere in between. not only capital goods but also information, energy resources. i mean this is for the business community whether on the tech and, the service send or in the capital goods at manufacturing and if you can't move it you can't do it.

>> well thank you. that movement is so critical because we all know what happens when it takes a long time. thank you. senator vitter. >> thank you madam chairman thank you all again. as i have suggested in my opening statement we have been hard at work for some time discussing it will to try to move out of this committee as soon as possible. the idea would be to deal with those issues under our jurisdiction in an aggressive way and a way that helps rebuild trust in the trust fund and then to really help and sent the finance committee to do the tougher work on the finance side and be our full partner in completing that bill. with that process in mind let me ask a few questions of doctors ruane. first of all thank you and fhwa for --

thank you all your organization as opposed to fhwa for producing very good data which you have given in your testimony about projects in each state impacted by the trust fund and federal aid. one problem is you all had to spend hours and hours and hours producing that data and it seems to me that data should be readily available through the program to make it transparent and clear what the trust fund does or doesn't do. would you agree with that that there are reforms you think they can be made to make the activity under the trust fund far more transparent? >> i absolutely it re-and it's really tragic that one would have to use use the freedom of information act to get such information. they have that information going back and i'm not here to unfairly criticize any agency

that you would think they would want to get that information out there aggressively and tell the story. we make a recommendation or testimony specifically. you recall the effort that was made by the administration the various agencies and telling the story under the stimulus program. there were routine and regular commentary on what was being done and the various projects around the country. we say that should be pro forma. that should be routine. they should be celebrating these investments these 20 plus thousand projects every year in telling the public where these resources are going and what they are achieving, most importantly what they are achieving. one should not have to use a foia request to get this information. it's an incredible story what this has accomplished in our economy. >> i certainly agree and will

continue to push that. there's a specific provision in map-21. unfortunately fhwa has not responded so we need that rader transparency. mr. hancock i'm real concerned as are many of my republican colleagues about the epa and the new proposed rule under the clean water act and i think this poses a threat of dramatically increased permitting requirements and decreased flexibility on transportation projects. also concerned that the rulemaking may proceed before peer reviewers even review it. that is supposed to be a key part of the process. do you have any thoughts about this? >> we have not actually seen that 404 permitting yet but we are very much concerned about

it. we have been told that it affects the roadside ditches as sources of the runoff area to be controlled. most of the stitches were billed as we built our road system. they are not intermittent streams per se so we are very interested in that than looking over to hearing from federal highways. >> mr. timmons thank you for your testimony. can you expand on it just a bit and his nam have an estimate of the cost advantage or disadvantage and these are the other nations related to infrastructure and what path are we on regarding back? i presume it's going to be a cost disadvantage in terms of global competitiveness. >> i don't have a specific number for you senator but i can tell you there is certainly a disadvantage. when some of the other folks

here are talking about what our major competitors are doing with regard to infrastructure projects those projects do allow to make it to market more efficiently. there is general however 20% cost disadvantage versus major trading partners around the country because of several factors. it is that 20% disadvantage is after you take up the cost of labor regarding taxes and regulation going back to your question on the proposed rule for epa on waterways as well as other factors. anything that detracts or adds to that disadvantage obviously hurts manufacturing in this country. >> thank you. a final question for mr. hancock. aashto is one of the first organizations out with the reauthorization priority. i thank you for that and i assume that means you think there is room for improvement

reform and greater transparency to rebuild trust in the program. can you expand on that? >> we absolutely do believe it needs to improve both math 21 we felt was a major step forward and we were very pleased with the reforms we saw. there are are some tweets that like the one need to be made that part of the issue right now is we haven't completely seen the rulemaking regarding those. we are eagerly awaiting those and we will have some comments. i'm quite sure we will tweet it significantly. >> look or two that. >> thank you so much and i believe senator barrasso is next followed a senator boozman. >> mr. hancock following up on your previous testimony i talked to my opening statement about the roadblocks that are out there in the construction

projects which makes things more costly and doesn't create meaningful jobs we are trying to create. can you talk about recommendations you might have to further accelerate project delivery lacks. >> there are a number of that to the these that are underway as we speak. the federal highways has an everyday program we are working diligently with them to see it rot forward. also aashto has strategic highway research programs that involve projects that save time and get things done faster. many things on the horizon. we see the value of doing this and i promise you will be sticking to our guns. >> anyone else want to respond to that to help get money moving more quickly? >> full implementation of the reforms of math 21. i think the congress made some great changes to the legislation

is part of that bill and it's just a matter of implementation. they could be accelerated. >> anyone else? >> mr. trumka you talk in your testimony and highlighted a 20-mile six lane bridge that china took two years to build from pen to pavement. the vice president made a statement last week about going to laguardia airport. if they take someone blindfolded at two in the morning they would think they were not third world country. it would seem the best-case scenario to do it project like you out wind successfully completed in a swift manner it might take over 10 years to get that whole process done. from your experience and travels but can we do in the united states to really accelerate project delivery?

[inaudible] >> one thing is we can have some long-term predictability and planning. we need a long-term bill so people can plan and start the process and have some confidence that it will follow through. if you are talking about public-private partnerships that are out there that offer real potential that's not going to happen without the ability to plan and be predictable and go forward. also i think it's just having the will to say as a nation we are going to do something. when we decided to go to the moon we got the nation on footing. our infrastructure according to the world economic forum has dropped from seventh in the world to 15th in just five years and it will continue to drop. the american society of civil engineers say we get a d+. we have a $3.6 trillion deficit

to get us back to where we need. the d.o.t. says a third of our roads are now in poor or mediocre condition. we need as a nation to say we are going to be the most competitive when it comes to infrastructure and understand that investment today is going to reap tremendous benefits down the road. i think us coming together, the nation coming together everybody up here has come together to say we needed and then to have the political will to go forward i think is what we need. it's just the determination to say we will do it and then get together and do it. i applaud the people and the members of this committee because you understand the importance to the country of infrastructure and that's maintaining our infrastructure weathered sub bridge or a road. i urge you to go further and think boulder and start talking about high-speed rail and other

things, a grid system that doesn't waste electricity, a delivery system or you don't have weeks in seats that drain gas and earned oil into the environment. all of those things can create jobs and make us competitive. i think the most important thing is for us to just have it vision and they will and make a decision to do it. when we decided to go to the moon, nothing could stop us. the same thing here. if we decide that we will have world class infrastructure to compete in a global economy i have no doubt senator that we can do it and we can do it the best in the world. >> when we decided to go to the moon senator we had a compelling national interest and we didn't have all the regulators and lawyers and lawsuits that we have today. to go out and build a major

project is preceded by permitting and zoning arguments and lawsuits and by environmental lawsuits. and by the way i have no problem with looking critically at the environment but repetitive lawsuit after lawsuit, the reason we can't do things as quickly as others, one of the reasons is because it takes so long to get a conclusion of all the permits, although zoning, all the lawsuits and we are talking years and years and years. i think we all went to school and we studied and we had three parts to our government, the executive, the legislative and judicial.

we never knew we would live in a time that there was one part that was bigger than all the others put together that we never talk about and that is the regulatory and litigation part that is absolutely strapping this nation's ability to compete >> thank you madam chairwoman. >> thank you center boozman. >> thank you madam chair and i do appreciate you and senator vitter having this hearing. i think it's very important. we hear a lot about the partisanship that goes on in congress and yet in this particular area on this committee when it gets into the environmental issues there are differences of opinion. there is not difference, very little difference of opinion with regard to infrastructure. it's interesting i look at the panel and it's the same. we have the chamber here and we have labor here and we have got you know nam and the road

builders. all of you all and it's strange bedfellows coming together as we all are talking about the interests. i have real concern about the harsh winter and the fact that the jobs are being affected right now because we simply can't get worked done with these very cold temperatures. i mean you just can't do it pretty soon it sounds like already the contracting is an issue. i know that we have -- this is not hypothetical in this sense. we have had the same situation in the past and very definitely with the contract. again i'm really concerned about that. .. about. i would argue that -- and it is sad to hear the statistics, but one of the reasons that we became the economic power house

was the vision of the eisenhower administration and congress getting the interstate system put in place. i am committed to doing anything and i can to get this thing done . so one thing i would like to ask mr. hancock, one of the frustrations we have not only with this, states are struggling right now. and in an effort to try and push more money for infrastructure they're is a tendency at the state level, and this is not true of arkansas, we passed that sales tax which is something that other states need to look at doing in actually have defined projects and things and get those kind of things done. there is a little frustration as he puts more money ought, the state backs out and they get this money so that they can divert to prisons and schools and things that are very, very necessary, but the reality is you do not go forward.

you have more of a federal government shouldering the burden. >> i would be more than happy to comment on that. has been hard experience that whenever federal money has come the state has stepped up with issues and made additional moneys available as well in kentucky we have been in will to do a lot of major projects through that mechanism, but the one thing that i would say, about 40% on average of the money that the states have to work with to build projects is federal funding. of that 45% bid constitutes more of the larger projects that we actually build. so is a critical piece. but the states are doing a lot, and you have seen that in recent days with the number of states enacting new funding mechanisms and so forth. we applaud the states that have done that. we certainly are encouraging everyone to do what they must to find the money necessary to invest in transportation, but it

is a difficult parents with the state budgets and so forth. we find a lot of our colleagues that are very interested in spending more on transportation. >> senator, you made a great point about the harsh winter. when it is over and people can go back to work it will be to an infrastructure that is more seriously affected and more work to do. >> you make a great point. not only can they not do the work now, but with this vision got you know, it is torn to be difficult. there will be a tremendous amount of damage. how long does it take for an average significant road project to get done now? >> minor ten years. >> we did a recent average of seven years. >> you mentioned that the bridge and china. the thing that impressed me was the situation that we had in minnesota, you know, the bridge

collapse. nothing was rebuilt in the year. that would have taken easily in today's climate ten years or whenever. instead of the agencies having adversarial attitudes, people working together, you know, the labor wars together, it was just the attitude of we can get this done and get reopened. we essentially were able to do something there really was quite extraordinary. but i think -- and you all can be a tremendous help in this area. with the limited resources that we have faugh, you know, not to skirt rules or get around them, but to do it, but to just have the agency's duties. we put stuff in the bills before, but really just to make the agency's when they're talking together, doing it together that we need to have the goal as a nation to cut that time in half or whenever goal

that we make. that is a very doable thing. and with inflation, the cost increase and things like that it is something that was sent us a tremendous amount of money. thank you. we appreciate you being here. i am committed and the rest of the committee is committed to helping. >> well, i just want to say to each and every one of you how much i appreciate your testimony today. i know that we are singing from the same boat except when it comes to the environment, which is typical and i understand it. i honestly have to say that this transportation bill in order to get out here is not going to be one big environmental writer. let's be clear because we have to come together. and just as the businesses and the citizens of west virginia if they want a little more regulation on that chemicals bill which is killing business, killing economic development

right now according to my colleagues. i just think what we need to do is find a sweet spot. we need to speak up. and we have a lot of reforms. has dr. read pointed out in the last bill. we need to make sure that they're working. and we have to understand that a great deal of the slowdown, senator, is funding. sometimes the funding does not come through which is why it is so important. so excited because if the idea came from really the los angeles mayor have pointed out that they have the sales tax, but it is going to take in 30 years to build the projects. but we could change that 210 because there is really no risk to be the money is coming, but the federal government can step up and move that money ford. i really appreciate all this. i see that we have a colleague

-- do we have time to do another round? bucket. go right ahead. i will finish later. >> i have a couple of conflicts. everything happened at once. i noticed that you called for increases in gasoline tax. it is the position of the chamber of commerce that we will be raising taxes to increase spending today. >> we have not raise the federal user fee fuel tax in almost 20 years. >> you want to raise taxes on albanians who have to commute to work. you can spend it however you would like to spend it. senator, whether you raise the tax or you seek the funds through some other means of federal expenditure the citizens of alabama are going to pay for it. >> you propose raising the tax. >> yes, sir.

>> would it be acceptable to you if we found ways to spending in washington and reduce that to pay for the highway? >> if you actually got the money . the longest singsong in washington in the history of my time here was a waste, fraud, and abuse. we're going to get rid of it and use the money fix. if you actually got the money, ticket out of other budgets and put it there, i would applaud you. >> are you would support that. >> that is not what you are testifying to in favor. some of my people would probably rather increase the corporate tax rather than the gas tax. >> the corporate tax in this country is far more than we pay anywhere else in the competitive basis, and i think you should ask billy canary that runs the expanded and combined chambers of commerce in alabama whether he could get his members to support a user fee to move their goods and their workers.

>> so i guess i understand what you want to say. you want to raise the chamber of commerce testifying that you do not believe it is possible to cut and save the highway program without raising taxes. i just want to get that clear. i think it would be very, very hard to do that in the next seven months. if you can do it i will vigorously supported. >> i think that is what we should do. there are places that we can save money. i guess i am just wanting to know that we would like to reduce the corporate rate. it is hurting america. asserting mr. trump does employees and is hurting economic development and job creation to have virtually the highest corporate tax rate in the world. >> well, we certainly agree on that. we totally support that. i was teasing you a little that about you supporting somebody else paying taxes, but not you.

in 2000 when the employment wake was around 4% the new york times wrote an editorial opposing amnesty for than 6 million illegal workers in the country and said the afl-cio proposals should be rejected. amnesty would undermine the integrity of the country's immigration law and would depress wages of its lowest bay, native-born workers. the new york times. today the employment rate is 6 percent, and the workplace, the work force participation rate is below is that it has been in 40 years. wages are lower today than they were in 99, yet you've embarked on a bill that not only grants amnesty to 12 million, but also provides green cards to its 40 million new illegal emigrants. >> my friend, why are you

talking about immigration? this is a hearing about the highway trust fund. i have never quite seen this type of an attack on various members. i am confused about it. does not helpless. >> i am raising a question. i did not know that we were strictly -- >> well, yes. we are. this is not a committee that does immigration reform. i could call out reports that show that it is a great boon to our economy. i will not get into that fox. i would please ask you, your question was tough and fair, but this is getting off topic. you could keep your questions to the topic at hand it would mean a lot to this chairman. >> you know, you are such a fair chairman. we will acquiesce, maybe i would submit a letter. mr. trumka could have a chance to respond because he has given a lot of the. >> i would welcome that. i really would fit. i would tell you, there are

6 million people or 12 million people with no rights. driving down the wages of every other american out there fifth. until we fix the system everyone will have less income, less economic growth. i look forward to the -- >> i'm glad we put this off to another day. go right ahead. >> i have looked at that. this legislation that cleared the senate that you support it would dramatically increase the legal flow, not a significant impact in reducing illegal flow. think it is beyond what the economy can absorb, but that is an issue for a different day. thank you for your testimony. we just have the budget report yesterday. it is sobering. he suggests we could have

another fiscal crisis because our debt is reaching almost 90 percent of gdp. gross debt could reach over 100% of gdp. we cannot just tax our way out of it. so that would knock off the growth of we would like to have. madam chairman, again, you have led effectively on this. and i hope that we can come of with something and strengthens our infrastructure problem in a fiscally responsible way. >> senator, i do hope so. i would say that this committee is going to deal with the reauthorization. we heard from every member through when you weren't doing a very important duties is we need certainty here. this is -- we don't know what the future holds. what i am hopeful is we can get a five or six your bill of year. i've spoken with the senator, and he approves of my saying

that it is my intent to have that bill before this committee in april. that is our intent. it will not deal with the funding because that is a matter for the senators and your committee, but it will lay this out, and that is why it is so important that would never -- i have lots of ideas. one of them is to go after 350 billion uncollected taxes every year. i am sure others would not agree, but there are many, many ways that we can get this going. but costs he makes an important point. his got to be real. it has to be certain. and that is why the user fund, however use the fund, whatever it is, whether it is the death tax, the travel that is not intrusive or it is a user fee at the refinery level, all of that would be a dedicated tax going into the fund. and because of our economic situation we need to have this

because if you are really worried about deficits and debt which every single one of buses and was so happy that i was your behalf. our members saying, we will not have any more bounce because the debt is disappearing. i was here, and that we can handle that problem. but the highway trust fund is different. as it was envisioned by a republican president, it has a separate seat, does not cause problems with the deficit. very important, and i think that we should keep the user fee concept because it does give that type of certainty. that decision is going to be made by another committee. they are excited about us doing your part. i cannot speak for every member. i've sat down with most of my colleagues. i have to morgan said down with fox. i am hopeful that we can unite.

environmental writers and all the other things and we can just focus on what must be done. i am excited about the challenge no one thought that we could do it last time. i want to say, senator sessions has been a friend to me in this committee. we do not see eye to eye on a lot of things, but we work well together. i respect his knowledge of the deficit situation, the debt situation as a former member of the budget committee i know that in that committee udc the big picture going down the road. there is nothing in this bill that is going to hurt the deficit, nothing. it will be self sustaining which is absolutely critical. with that i want to thank all of you. report back to me about your conversations. i hope you will. i will ask the senators. i will tell them what you said you were going to call them. i think we can get this done, but only if we stick together.

let's find that common ground and not get into arguments about other issues because i think that gets us off track. thank you very much. thank you. >> yes. [inaudible conversations].

>> i'm glad you made it. [inaudible conversations] >> yes. he has to wear a tie. >> okay. thank you for being here.

we just had agreed welcome from the governor of the great state of maryland, martin o'malley and a wonderful presentation by a couple of economists who talks to us about building an economy that works for all americans which is what we are here to do, talk about how we reward work, now we provide economic security to all americans, how we make sure that the economy of tomorrow works for everyone. not just some, but everyone. i will return to the days when we consider our children the american dream is before you. quite honestly these last few days have been pretty good for americans. yesterday we maintained the full faith and credit of the united states of america and did not cause american families mortgage interest rates to go way up. we made sure that people could still borrow at a decent rate. today hundreds of thousands of americans woke up hearing the

president telling them they're getting a raise to $10.10 an hour if you were working minimum-wage. i think you're ready to work. we want to get out there and do the things that show americans that we're ready to take action to ready to work on their behalf. this should be a year of action. there is no reason why 2014 should be a year of shut down politics or why we just pack up and put it away. we can do things like raise that minimum-wage, not just for workers for federal contractors, but for all americans. we can guarantee equal pay for equal work, renew a emergency unemployment insurance for over one half million americans and finally fix a badly broken immigration system. we know on the immigration reform front that we have the votes to pass and believe the we have the votes to pass all the initiatives that i just mentioned which is why i think that this should be a year of

work and action which is why we are here assembled in maryland to talk about how we as democrats will work with the president for this year of action on behalf of the american public. with that let me turn to the leader, nancy pelosi. >> thank you very much to you and mr. crowley. thank you for providing the auspices for which we can come together to work for an economy that works for all americans. we heard from some experts and economists today. we are in a wide exchange of ideas. and one of the ideas that emerges is that when women succeed america succeeds. the reinforcement of that principle is one that, again, the president reinforced by raising -- guaranteeing a minimum wage to people who work for contractors with the federal government. but in our agenda when women

succeed american succeed. it is about pay equity and raising minimum wage. is about paid sick leave. it is about children learning and parents earning. really important. and also, we, day after the house of representatives passed the lifted debt ceiling. can you imagine -- let me just read from the constitution. the 14th amendment declares that the validity of the public debt of the united states of america authorized by law shall not be questioned. the action that we took yesterday reinforces that honor of that statement and the constitution. it is really stunning that 199 republicans voted to defaults on the full faith and credit of the united states of america. that is not in furtherance of an

economy that works for all americans. in fact, it does not work for america and all, whether it is our global standing or whether it is what is happening and kitchen tables across the country. as our chairman said, the interest of people will pay on their car loans and mortgage statements, college loans, small business loans, should they be small business people, what it means to people's retirement, the impact of a default on the full faith and credit of the united states of america. putting all of this with a bluntness of confidence in our economy that wants to share prosperity for all americans, confidence in an economy that works for all americans. we are excited about the enthusiasm, hopeful that with the cooperation between democrats and republicans yesterday on the floor, people to the speaker for bringing up

the legislation, he knows the consequences of a default, but yet 199 of his colleagues did not share that concern. stunning. and no senator voted -- no republican senator. thank you. no republican senator voted to lift the debt ceiling. every one of them voted to default on the full faith and credit of the united states. it is really important that the public understand what is at stake in these debates. today it is president lincoln's birthday, february 12th is when we used to celebrated. now is a weekend and a weekend the rest. february 12th, president lincoln said public sentiment is everything. the public has to know how they are affected by public policy in washington d.c. they want america to have a raise.

america deserves the race. work ethic is alive and well across our country. hearing from economists of creativity thrives across america which is what creates jobs for an economy that works for all americans check. we are excited about a year of action working with the president, hopefully working in a bipartisan way. in that spirit i am pleased to yield to the distinguished democratic whip of the house, the gentleman from maryland. >> thank you, madam leader. very, very pleased to have all of you here, all of our colleagues here fish, and we were proud of our governor this evening as he spoke to our caucus. he focused on the issues that the president focused on. an optimistic way. a president just a few weeks ago said he was optimistic that he

had done better but we were not really needed to be. we still need to invest in growing our economy. he said that he wanted to work together. i would suggest that every time that we have had a bipartisan vote america has been advantage to. whether it was being airbills, unfortunately not in a bipartisan way a great bipartisan votes when we funded government, past the omnibus appropriation bill, replace the devastatingly negative and sequestration under the. so acting in a bipartisan fashion is a good thing for the country. the president thinks that we

need to act. the american public did not send us to the congress of the united states says not to the public business. not to invest. not to vote to make sure they get paid. not as the fall were the cracks. not help the economy by passing comprehensive immigration reforms. and while i'm optimistic that when we act together america will succeed women will do better, all this will be better. we will, in a phrase that i have used so often make it in america that is what americans will do. we want to have a sense that they can make it in america. that is what people came to america, to make it, to seize the opportunity that is the american dream.

i'm optimistic, concerned. he says that is what our leaders said. if we get past this one referring to the extension of the debt limit so america would pay its bills we are done until the election. let us hope that is not true. let us hope that the republicans want to work with the president and with us to make sure that we can make it in america. women do better and america will do better if we invest in our people and grow our economy so that everybody can make it in america. that the yield to my dear colleague and friend, the assistant leader, mr. jim cliburn. >> thank you very much. madam leader. i think that all of us have the

ability by the actions. the minimum wage, federal contractors. >> minimum wage. it extends into areas that we have not touched on. it has been 20 years since we have established a floor for the people who learned salaries for tips. two hours and $0.13. twenty years ago. it has been that way ever since. this executive order raised the debt floor to $4.90. and it covers concessions and service, contractors which means

that these concessions for state government where we have people blind and disabled who do certain services for the state government and contract with the state government. with that service is covered as well. now we believe it is time for the congress to pass the bill. it would immediately lift over for a half million americans above the poverty level. that is what it would do. and i think it is high time that we do that. because, as was said, over 6 percent of the people who are going to benefit from the minimum wage are women. and one in four had children.

and so i think it's important for us to look at one other thing. we hear all this talk about minimum-wage as relates to young workers. the fact of the matter is the average age of minimum-wage employees is 35 years old. and they have the least one show. so this is all about lifting households, women, children above the poverty level. i would hope that the congress, our republican friends would join us in passing the bill raising the minimum wage. with that and would like to yield to the vice chair of our caucus. ..

1.7 million americans find themselves economically stranded. on an island surrounded by paid. desperately searching for a job and have now bet denied an extension of of a plebiscite insurance.

what that really begins to these individuals is if they continue to look for work to provide for their families families, education, the disencumber rent, mortgage company their government is not there because the republican caucus refuses to extend and employment insurance for these individuals they and their families. i have a gentleman from the your contacting me is there any way we can we can break for the district work period i told them i didn't think it was likely. it is difficult to tell someone who is so desperate. in fact, looking of the prospect of losing his held and what that means to a family had devastating that is. republican colleagues talk about how pro-family they are but now they can send a message to one played

8 million americans. not republicans or democrats or better blue or green just americans to send a bus digit give people hope that their country believes some of them as much as they believe in this country and give up hope for the opportunity to take care of their family is. just so big to make ends meet. with that i will turn over to our point person committee. >> i joline to welcome you to maryland off to a great start what specific actions we can take to make sure the

economy works for all americans. that is the subject to have the economy to work for everybody we have to reform the broken tax code that is too many places is rigged to help powerful special interest and folks at the very high end of the income scale and a case in point our the provisions that acreage big corporations to ship american jobs overseas. american products, not jobs. other provisions of the tax code that encourage big corporations rather than having those funds invested here with american jobs. we will push has the president outlined to a tax

code that works for everybody much as powerful special interest to be sure we encourage investment united states with all sorts to modernize our infrastructure that helps to put more americans back to work period we hope our republican colleagues will join us in that effort. i will turn it over to steve israel who tries to make sure we build the economy that works for everybody. >> thank you. what you have heard from my colleagues cover rising wages, pay equity for women, a fair tax code code, immigration reform the fundamental differences of the united states congress right now.

whose side are you on? and every one of those issues of rising wages immigration reform of fair tax code whose side are you on in california today i will add one of the most liberal republicans in congress decided he was on the wrong side to jump ship because he himself knows you cannot continue to defend the indefensible or the wrong priorities. and to the wrong values. having you very much.

>> with a summary of your remarks shows your approach to the president's initiative what do you oppose them what to expect to hear on friday? >> i think the characterization we were not talking about president obama is initiative but came up and bacchus i said that in its present form is unacceptable to me and i have worked with many colleagues to find common ground but in the present form it is unacceptable. but it is not a rejection of the president's trade agenda but a rejection of the current form of the camp/baccus. but the trade issue is very important because the party of john f. kennedy, a free trade, fair trade we believe the global economy is here

tuesday and we want to export products overseas. we have the tax code right now that the ward's businesses that sense jobs overseas. that has to be reversed to reward businesses that create jobs in the united states. it is all a very much a part of the economy that works for all americans. something my colleagues are saying, let mr. israel was talking about we see what the president said in his speech to an opportunity agenda. we have long seen an opportunity gap in our country and we have to do what we can to close the gap. one of the approaches is we understand the american

people are not fully participating in the prosperity sub are enjoying in the country or any part of it. we interesting and the republicans are in different to those to be raised of the battle of wage and to beat an extension the list goes on. do any colleagues want to say anything? vivid you have been known to give a prediction of things what is the likelihood of the democrats taking back the house? >> we are here to talk policy but hopefully find common ground to focus on the economy to create good paying jobs in a bipartisan way. if republicans was supported the increase the minimum wage we would rather have that legislative success than the issue of the campaign.

>> talk about obamacare side up my gosh -- where they have signed up to what is your reaction? what is the pivotal mark? >> are you referencing the affordable care act? >> yes. [laughter] >> the affordable care act we worked very hard to enact as we talk to a lot of you i said it will get better every month. by the time we get to summer people will say this is helping me, my brother brother, bryce sister, my neighbors and we have evidence of that mentioned

in the 3.3 million people cover a 1.1 billion in january alone. this is very important young people in all that the interest-rate ages 89 through 34 rose 65% over last month. we think what is happening is what we thought the american people see the benefits of the affordable care act with the marketplace with competition to get good benefits and better access. what is the purpose? period we think it will be a great benefit to and they will see that in the coming months. >> 3.40 million over 12. 5 million. >> with the exchange. >> any other questions?

>> it is safe to say most issues there is zero appetite for those to come up under the republican controlled house you said you want to put pressure on to the bill but how is there a specific strategy? said. >> guest: obama to do more? >> as you indicate to everything that we talk about is in over 70 percent of the people they think we should have comprehensive immigration reform. the list goes on. we said the too hot to handle approach public sentiment is everything as abraham lincoln said a and the more people don't like camby to have the better off we will be.

however yesterday we said over and over we will the support in increase of the debt ceiling unless it is clean we are not negotiating the full faith and credit of united states of america. it took months but yesterday's they finally conceded at least the speaker recognized the harm that would happen to our economy and we got a clean, you know, we are not going away on these issues. we passed minimum wage in the first 100 hours with the majority in 2007. president bush had signed the bill. it is not partisan. of unemployment benefits is a bipartisan initiative all along so we are suggesting is not partisan issues but areas where we have bipartisanship in the past

and again, we believe the fair thing to do is to understand their challenges minimum-wage is not just for a minimum-wage earners but for every one that is why people make much more in the minimum-wage understand it is good for them to reject the me and into the economy then creates jobs in that way as well it is a stimulus >> this is february. [laughter] >> we have spent in session five weeks. >> the debt ceiling was lifted i don't take the american people by that. timid americans are suffering they need help of

its people who are earning 90 enough even the fast food chain store to increase the minimum wage the president's address that but congress needs to do more. he asked the republicans to the democrats to pass a minimum-wage increase for the american worker. to help move the country forward to work with colleagues to make that happen but they have to beat us more than halfway. >> i don't think anyone -- to the we have discussed those the don't have a chance in heaven to get past. measures that not only have

the task majority but those in the house of representatives would vote for these we're asking for achievements to have a vote and most americans would be astonished to go it is not that congress came to get its work done by a conservative -- a concerted effort to prevent us to put up obstacles to let us vote. we're not insisting they joined us to do what americans want us to do to provide insurance for those who have lost their jobs or providing equal pay for equal work but saying let us vote and of the majority exist, but excellent but don't blockade progress the house of representatives is the people's house and should not be the graveyard for good ideas.

>> we're not having a theoretical conversation but very specific actions congress can take no. these are pieces that are ready to go. they can be acted on today if we have a vote to start changing people's lives for the better. rehab the bipartisan senate immigration a bill. we want equal pay for equal work we have legislation introduced to make sure you can earn it sicklied to take care of family who is in trouble and not have to the newspaper goodies are concrete actions we will

make it clear within 100 hours of a dukakis we will do these specific things with a bb impact. it is important there recognize these are concrete practical steps. >> yesterday you said you shared with some concern of the congressional black caucus in judicial appointments coming from the white house so can you expand on that? and let us know what appointments you would like to see moving forward. >> what i said is i was an agreement with the congressional black caucus we the diversity of the bench and the problem in the

united state senate deferring to each senator in each state if they did not support diversity we would not get it and i said i agreed. as a matter of fact i had a talk briefly with senator reid's chief of staff who ask about my sentiment. but let me differ to the assistant leader of the black caucus because he has been involved in those discussions. >> yes i have. our concerns if you look at the list of possible judges would have not been acted on, about 13 or african-american.

we believe these are people who come with sterling credentials but because of the process that we have have, too many senators from various state are refusing to return the blue slip so they're out in the bow so we have asked the senators the fact that for two years because they did not allow their names to move forward these people would be approved if they were allowed to have a vote. is not fair to have a

process that will not allow the full senate to vote on these nominations. for everybody you express his concerns it is very important to america. [laughter] >> if i may just say there is a lot of people out in the cold literally and figuratively because of the employer insurance. we don't want the republicans to be in different so far it looks the way they are let's hope they prove us wrong but they q for coming out in the cold to be with us and we hope we can stay in close touch over 48 hours a you can see how excited we are about coming together. thank you again.

[inaudible conversations]

well what they did your attic is we do eventually the bill would pass but if this said that unlike the house there are procedural hurdles require read the 60 bow to the threshold to a boom to final passage. sometimes they can work added deal requires separate jury the bow but ted cruz voiced against that threshold to move of the bill that would require at least five republican senators to put their back on the line on of bill that is politically hurtful to them. it is dramatic in a way we did that no how betty add which senators on the republican side could vote to move forward with the bill. '' was most surprising is

minority leader richard coddle and was facing a primary challenge was one of those who voted to proceed with this bill. he is the leader of the senate and the house speaker earlier this week did the same thank. >> host: what did g.o.p. leadership do to get the votes needed to pass? >> they talked about it during their conference we earlier today of a senate side and a mcconnell and other republican leaders and the senators decided to voice support for moving forward with the bill which gave over the 60 vote majority threshold that they needed some of that boat cloture motion was called republicans voting to

proceed the final passage was on party lines all democrats voting to support raising the debt ceiling and republicans against it. >> host: you said standing next to mcconnell on the floor were senators mccain and others to switch their votes giving cover. what reaction and has there been to the yes vote of mcconnell? >> guest: a little surprised but also something leadership does and typically should do. but the politics of the bid term election year for which recall and said its control of the senate is at stake may have a chance this was surprising and can be

politically harmful. as they joined with the leader i would point out for clarification all senators and handed up a boded over final passage. >> host: with the house passing the bill first. >> but conservative outside groups have been vocal in the past pushing boehner to address the debt. the house speaker exhausted the options and policy editions that going with a

clean bill for the party consider rig-veda a big hit with the shutdown with previous battles so they bill continued to voice opposition but within the chamber itself there is the opposition into a subway they pay you doubt from conservatives. we do not see them rise up against the speaker or bread nor do leader as we have during debates in the past. >> host: caitlin huey-burns the congressional reporter with real clear politics.com. . .host: we want to welcome baco

the table congressman luis gutierrez, democrat of illinois. immigration is the topic, and the lead paragraph of the "usa today" story online says hope for immigration reform is all but dead. 47 -- that is the to 247th over jury. that is what the press likes to do. host: you do not believe it is that. guest: speaker boehner said it is hard. welcome to my world. we know it is hard, but we welcome you to this debate and to getting it resolved. it is going to be hard to get it done this year. we did not say could not be done this year. so, let's face