this is 30 minutes. >> good afternoon. sorry to break up the conversation. i'm ahead of bloomberg government and on behalf of my colleagues whether it is bloomberg news, or us here at

bloomberg government i would like to welcome you to the kickoff. these events will b be hosted ad talked a lot about in the future of work and technology, innovation, the law and government. and we couldn't pick a better time to talk about any of those topics given the fact we have a new administration and congress coming to town in just a matter of the. for those of you that don't know us, bloomberg government is all about providing the tools and information they need to be successful in their work. with infrastructure expected to be one of the very first things in the new administration and congress to take a look at, we couldn't pick a better topic to kick off the next series. once the administration and congress come to town, we will be tracking all of it whether it is the bills moving through congress, the rules and the agencies, the lobbying dollars

were the contract is moving through all the different agencies. so, for today we have an exciting lineup of panelists and i want to say a word of thanks to the speakers and moderators of panelists for taking time out to join us today and i've also take a moment to acknowledge the partner building america's future and in particular my friend and neighbor. they had been great partners to us. [applause] as well as setting about 5 feet away from where i sit. i want to introduce the first session today. it is my pleasure to welcome to bloomberg and bloomberg government the secretary of homeland security jay johnson. he will be having a conversation with my colleague from bloomberg

news. obviously with infrastructure being such a big topic, security of infrastructure is something we have to be thinking about, and i can't think of anybody better to have that conversation did the secretary. so mr. secretary, it's all yours. welcome. [applause] >> good afternoon. >> thank you, secretary, for joining us today. we are excited to have you here at bloomberg. let me start off with a question and then we will open up to the audience. i wanted to ask, there were a lot of concerns around cybersecurity. i know that dhs was in touch with a lot of states and i just want to know what you saw that

dave was there any intrusions or any kind of report that you can give us after the concerns leading up to that time? >> was the begin addressing the elephant in the room and being non- responsive to the question at least initially being the transition that we are in. this is my third that i've been through. i've been part of the outgoing team in 2000 and now part of the outgoing team again in 2016 i can say with high confidence that this will be my last transition. i very much believe in the citizen public servant model and i look forward to returning to public life in 67 days and there are two things i would like to

point out. one, anytime there's a there isa transition, there's lots of uncertainty and anxiety and questions about the direction the new administration will take the government. will they go to the extreme left or the extreme right and try to steer the middle course, who will lead him to be part of the transition, who will be part of the cabinet, and there are two thoughts. one, our government is and has been, and this is true since the day the constitution was issued to come our government is a system of checks and balances. we are not a monarchy or even a parliament harry form of government where the prime minister is part of the legislative branch. we have three coequal branches of government that served as a check on one another so that

when a new administration comes in if they have an edge in to take policy to an extreme left or an extreme right, there's other institutions of government to serve as a check of going too fast, too far in any one direction. so the new administration in the branch must inevitably operate within certain parameters called compromise, checks and balances. that's number one. number two, it's important to remember that something in excess of probably 90% of the day-to-day work of the government proceeds unaffected by who the president is and who the administration is. the work goes on and as the gs 13 level, certainly within our

military community, the men and women protecting the ports. men and women to fight overseas, if people in homeland security, 26,000, only a fraction of 1% are political appointees. the rest of the government goes on from day to day. one of the things that i hope and expect will be pretty much accepted that such doctrine by the next administration whoever forms this next administration will be the importance of infrastructure investments in infrastructure security. we've heard a lot from the president elect about investments in infrastructure

but the security of infrastructure is something i hope and expect will be accepted in the new administration and the interrelated us with infrastructure protection and cybersecurity because there is an increasing interrelated as between physical infrastructure and cyberspace, cybersecurity. it's critical that the two are to be seen. now to get to your question, election infrastructure. in the run-up beginning in august, i made a very public and private appeal to lots of state and local election systems to seek our help not because we

have some real concerns about the infrastructure but because very little of it actually exists on the internet and we wanted to make sure that all the systems command has some 9,000 across the country that are involved in the national elections we are thinking about this and giving the basic things they should do to protect themselves. we have outreach from something like 48 states which i was pleased about and something like 36 or 38 states ask for and accept our cybersecurity assistance in the run-up to november 8. ..

>> >> and we attribute that to to the hacking that was going on but we knew we could say with confidence about the hacking of the various political

institutions for cecile lunch action infrastructure itself and we expected then and continue to express confidence around the election infrastructure but they always do what they can't. >> dc we could see a response from the administration to russia by january? >> >> so with these elections and infrastructure i have heard you over the years speak about critical infrastructure and now want to see where that discussion is and how that would happen >> said last summer we would not designate or determine

that election infrastructure was part of critical infrastructure with the states some officials in the process. and that is my view. because without the distraction so to come forward to seek our assistance and we did. and it is something i will continue to discuss with secretaries of state out there and will reach with the assessment but not with uh confrontation. >> so now more of what your

role is with up process as you pass on to your successor? but then to show up at the department of who wins security with the existing problems pretty much like i did eight years ago when i showed up at the pentagon as part of the department of defense in then to take it interesting turn but to make assessments of policy direction to be with the component leaders to sit down with the transition

team to brief them on everything that i see with the recommendations to wait for word here is what i need to focus on. and the leadership team will do the same thing. and i have given this considerable thought, what i say to the incoming transition team is in respective of a new one the election. here is what we have achieved and as a worker can progress i am proud of the fact that we have done a lot in the last three years to improve basically as a department does business for manager reform to improve

the acquisition process and the budget making process with a joint requirements council to raise morale which is a big project of mine it wasn't easy we have the largest increase of the levels of route all -- morale. so we are leaving the department better than as we found it i will point those out to the team added it is important we do this in a way that the men and women for a the american public i told my peoplehood wish

should be transparent and collegial with the direction that the president wants us to go. >> if i could add one more point with richard vice for the transition team? one of my models for management style is make no significant decision without consulting all of the of relevant players don't make decisions in a vacuum. in that you encourage people to express those points and led you that is how the policy decision making should ocher. so the next secretary of homeland's security encourages a collaborative confinement of which they

make decisions. >> are there concerns of the transition to pass the baton and then those many differences and how does that smooth out? >> there is a lot of criticism and by his predecessor and his predecessor. and then president obama and a first lady with the dedication of the african-american museum some of the rhetoric was pretty

sharp so i take the long view and believe that i tend to see the best in everybody and because they're interested with those countries. and i believe that the administration relies upon the advice to make the best and healthiest decisions for the country and by a large how government works. >> talk about critical infrastructure what should the next initiation focus on that you did not get to our

right to consider you to see that make a priority? >> first i will read you ace summary from the national terror advisory yes. i am making news. [laughter] so we go to a new system in december of the alerts in the bulletin's in the current one expires tomorrow. is the same as the previous. and this is to focus on.

new with the global threat environment with the home grown violent extremist. and then to reinforce this with the public vigilance and continue to be of utmost importance. this was a critical component to the swift response to the terrorist attack or that acts referring to the attacks that the other point i would make the diluted to earlier that it is critical to be more closely aligned with

the protection of critical of restructure that they themselves have to be more closely aligned with the authority to reorganize the national program director to change this into a leaner and meaner agency of responsible for cybersecurity to reorganize into the protection agency as a closely are aligned. >> now we can all attend the floor to questions.

>> good afternoon mr. secretary. i with pfizer associates here in washington. with that critical infrastructure comment they seem more interested having the department with the potential targets like that. what do think is the appropriate role for d.h. us with the state of local government. >> as a general matter of a global threat environment

and that the federal level needs to work more closely through the grant making programs. and the security starts here. this is this something that the assistant secretary in deserts with hometown security in the current environment we say we have to be vigilant with public events not meant to refer exclusively with those major

metropolitan areas but also places like orlando or chattanooga. that makes for a more complicated from town security environment. i am a big proponent of active shooter exercises, grants and to focus on the type of infrastructure and then on this particular trend to the exclusion of others.

what we often want and need to focus our efforts with of large ones to focus on the multi jurisdictional multi discipline responses with the private sector as well. and we have been working more closely with private security experts to share information private infrastructure but not to use the exclusion of anyone and community or segment of infrastructure. >> i want to ask during the

course of this administration to .5-ton million - - million documents -- immigrants have been documented what is your advice about how much that effort to deport as many people would use your vice quick. >> that president trump city report 3 million people? >> person call when you talk about the deportation force the enforcement and removal and talk about deporting the criminals is the current priorities of public safety

and border security be moving those that are apprehended at the border. and we have focused on public safety of border security to of those priorities that i issued a november 2014. with that work force focuses on the criminal indifference to public safety. but a higher percentage of those and that is good for public safety and to focus on the best of public safety also to change their pay

scale with the law-enforcement pace scale that is hell something and help the next initiation but in general focused on threats to public safety. when we say we will deport 3 billion people that is the equivalent of the population of the city of chicago. anything that you do is they've magnitude you have to get money from congress to go along. and have been for the last two years.

>> this scaling up of these operation. >> we are currently budgeted to focus want a public safety. that is where it needs to continue for the safety of the american people. >> part of resiliency what about looking at the places of the same goal point failure? if the incident takes place quick. >> minimizing that is what you talk about critical ever

structure aviation security rail safety and to create redundancy and it is pretty basic and homeland's security. and that there are redundancies and built into any system. but with that election infrastructure that there are redundancies to the election night reporting for example. if the e-mail system fails

pickup the telephone but there are numerous redundancies builds into election night and that is the best practice. >> and what about after january 20 quick. >> i cannot say publicly but i look forward to being a private citizen again, an anonymous private citizen will share one anecdote with the people that i greatly admire and public service was secretary of state. and one day i was riding the

subway with the rail safety specialist i love the rails. i have read in every single line except the franklin avenue shuttle. i looked over in a beaten up trenchcoat the former secretary of state. [laughter] >> thanks for your service please help me to join secretary johnson.

[inaudible conversations] ♪

[inaudible conversations] if by kenneth have everybody's attention thank you so much for showing up

with this amount of people anytime but in particular as we get it ready to make a lot of decisions. and then to co-sponsor this on many minnesota send me hope to do that. and then move like the audience to get into. of these people who know a lot about the subject obviously the discussion is to go forward with the context of the election and that we had last week both candidates talk about improving infrastructure and

it has also talked about it. so i think our challenges to find common ground they can provide some common ground and hopefully come up with some great ideas. we need to figure out in our priorities and what role technology will play and where we will find the money. on a side note the governor has lost his voice almost completely that this symbolic of something that i am not quite sure what but trust me once in is voice comes back he will be very vocal because ever since he

was mayor of philadelphia we will have him back for another program as some point. so with that would like to introduce our panel but is also of president of the u.s. conference of mayors that is near and dear to my heart. most of your constituents are your constituents in the executive director for the transportation and infrastructure u.s. chamber of commerce. to have a very good

bipartisan split to have a real conversation this will be a big issue. can you talk to us about the conference priorities going forward? what do you care most about and what has worked? >> not only the nation's highways or what the citizens to live alone but the of water infrastructure infrastructure, the bridges that need significant repair . rather than going into those predictable things that mayors say i will give you an anecdote or to to understand the problem that is out there. we have three in negative

heart of oklahoma city california to north carolina and as it goes through oklahoma city was designed as the elevated highway over four 1/2 miles it was a bridge going through the downtown portion of the city. and the department of transportation realize that was a design flaw as they try to figure out what to do about that situation has some major artery it was not as stable as it needed to be so they come up with the idea to relocate the interstate highway a few blocks to the south and replacing that corridor so the city gains as st. so i was a city hall television reporter covering the meeting as the council determined but then fast for

word 2012 i cut the ribbon for the four and a half mile stretch that was finally located and now that is under construction in defy run for a fifth term somebody else will do that. but in 2007 and but how we pay for improvements and build police stations and other needs. we estimated by 2014 we would all they knew bond issue soon after that the state legislature pass a law that the increase of property prices and then we

hold that bond issue with maintenance then this city in than services are upset about it and for them to take care of the of projects so those looking for federal government to invest in r&d and to get more for less occasionally we get more with some advancement to find public-private partnerships with that tax exempt status but you want to remove that.

with every dollar that we can. >> budget in those greatest gains and forecasted is simple the most important infrastructure that project and with at bat region for the district so we win grow out 100,000 people those that were 4 million.

and then we will have of metro system with tender loving care with any serious thoughts from the safety and reliability and then to be a partner in that change we carry the federal workforce and all over washington d.c. all across the region said to work with a new administration to be involved to pay their fair share not even talking about the millions of people from around the country and around the world to make sure you have a world-class metro system there has to be

a common ground with us knew a administration. >> that was such a spectacular way to get around town. >> now i did it talk specifically so when people come to the city and how we accommodate bid -- and we are very focused that we are conservative we link that to the two critical investments and to make sure and that

continues to be the focus. so long the horizon is with the infrastructure to keep up with the growth so the signal for the new congress just completed data analysis of the infrastructure needs we know what we need for maintenance and what we need the federal government to do what we can do with the public-private partnership. i know people are looking for some good deals we would be ready to have that conversation in the district >> but that is what is so important that as a country we probably need the 10 year plan been with the vision

what do we need across the country with water and energy greeted and technology? if we stop and think about if we allow the mayors to come up with some of list of what could happen we could start to envision how we would get there. so of that point let me turn to the chamber that they are prominent members of an organization that many of us have started that is of coalition of the chamber to build america's future as manufacturers and other organizations we don't agree on everything but we agree we need to improve our infrastructure so the

chamber is a very important part if you could talk about the priorities of the chamber. >> that is a great opportunity to be here. even though we're a separate parts of the stage this this along time commitment we start a coalition back in 2000 and all panelist here this this 15 years of effort to get to the point of two presidential candidates talking about infrastructure it did not just cannot of the woodwork we're not just here because somebody was talking about it was a sustained campaign over years we tech advantage of that so this is not new but

we're very excited about this opportunity with president-elect trump to take some ideas from the campaign we heard of the $1 trillion infrastructure deal to make that into a reality we cannot let the opportunity go to west when negative '02 race so we are partnering to try to educate because everybody asks the question what is the big infrastructure build? what we would like to see is increased investment and financing options. before the campaign they talked about private investment but particularly with the highway trust fund to make sure that is meant the second goal is fredonia

to create a lot of new programs but tax sector investment the infrastructure banc we already have a program that is very effective so we can enhance that as it has enhanced the ability for state and local government to go to the agency to look at private participation for investment that is another option we need to continue to build up trust with government and if you look at the last two major federal transportation bills starting with 110 programs that were federal mandates it is now down at 12 so we have seen the federal government understands we need to have more flexibility and options for state and local government

to provide a tool kit of options for government to say what is that best tool kit of options and our committee? so again once-in-a-lifetime opportunity we are very excited when we heard from the president-elect this is an issue in to work very closely to make is substantive we don't want to repeat what hap pened in 2009 lot of the infrastructure was not the amount needed and that investment went to short-term projects we will work hard for to make sure free to have the infrastructure package it will change the system for the better not just a onetime and function of money but long-term sustainable investment for

our economy. >> [inaudible] >> good question it was only 3-1/2 years late in the past the act last year but that bill increased funding for highways by 10 percent that is only about half of what the american society of civil engineers says we need to invest. we're doing a lot of band-aids and not systemically changing the system and that is a great example that was started as state-of-the-art but it is not sexy all the time to put money into maintenance when you don't maintain your asset kennedy terris to such a point the cost is exponentially more than if you maintained the asset over the lifetime. i know it is a challenge we have to lawmakers here who made that decision and may not take place while they

are in office without this the of leadership that we need. dwight eisenhower was not an office but we need leadership to show long-term plan that it is the right thing to do for the public we are committed to support those lawmakers to make those long-term decisions. >> so talk to us about the goals of trying to get something done to take advantage of this opportunity and how do we finance this what is the scope can let you a bite to see done? >> first what we really see in this panel is the usual convergence of opinion people on the different side of that partisan divide. lot of what i would want to

say that my colleagues have already said but i will repeat as the nature of washington we need to understand the scale american society of civil engineers with the infrastructure deficit is 3.$2 trillion. that order of magnitude that is larger but that's is not the full story is up maintaining interstate highway system but technology moves on. and to simply maintain the inheritance so the real

target number for infrastructure is in excess of 3.$2 trillion. it is important, we understand it is absolutely a critical to think about the transportation with the full range of public goods faddist is critical to be in the 21st century. if that is the scale then to understand the time line the assets that we need to construct whether repairer and maintenance for the construction of the power transmission lines to place

their it is demand, these are assets that take a longtime some to think about at financing and as has then alluded to by the prior speakers come in many respects this is not very hard. in the tax-exempt bond market the lowest cost sources of capital in the world there are people who are prepared to lend us the money to build the system at extraordinarily low rates. in those that provide enough of flexibility to get the job done. the ags somehow there is a financial problem is incorrect and intact that

idea is dangerous. in with those infrastructure needs so the of model to basically go out to find those two are willing to invest capital that demand high rates of return, not of the user fees that we've talked about a lot that is that the center of the paper of the trump campaign that does not work we can argue if you think the assets should be privately held or if somebody needs the treasury but the fundamental fact that there is no way to

have the user fee on the highway system if we said that is what we are going to do then we do nothing. and we cannot afford to do nothing. and as you heard from my friend in the chamber the question is the political vision and the leadership so now i will close with i had to say that this is really in area for potential for healing across the of labor business divide there is need for infrastructure enroll america and broadband there is enormous potential

but i have no idea would have to say this to this event, there is the prior question that has to be answered otherwise he can have a meaningful conversation. yesterday i have to say this , yesterday i went to church in suburban maryland maryland, episcopal church where somebody had sprayed on the walls of the church trump nation, white snow only. the episcopal bishop of washington in this church service asked of president elect specifically denounced the people that did that. we cannot have this type of conversation is long as that

question is on answered. >> okay. obviously we are very empathetic to at and under steven that as the country needs to come together and working on issues to find common ground is the first place that we should go. so perhaps the be across the board that could be helpful. so before we go to questions the process and the money is out there but how do we get there? do you believe that tax reform is repatriation to

jump-start the issue? >> i think it is very unclear about the natural way we are going i think there's a lot of ideas that have been thrown out to be transition team tax reform is something that he has talked about and also paul ryan. with the challenge is that people that are for tax reform it gets more challenging the other challenge from the infrastructure standpoint is repatriation there is 14 different ways to repatriate we dulce that as a long-term sustainable funding source we don't think that is we need right now we need a long-term sustainable solution so the mayors and governors know what they will get from their federal partner for a good period of time so they can make

decisions locally to make the proper investment we don't just need a couple hundred million dollars to say go added that make a plan to make a major investment as the backbone to the economy with the economic recovery plan has to have major infrastructure investment. >> over $200 million of state and local referendums had passed so if you tell a city or county what you want to build almost 70 percent passer reelection your thoughts is that the of wave in of the future. >> i am heartened to see that especially since we

need most major systems like ours to be a dedicated funding source people are willing to make investment to make their lives easier and that is why we saw around the country we are different that our system is supported by the jurisdiction so we need to come up with a regional way to make that investment i don't have to tell you that it has men said that the deferred maintenance will cost us many times more than it would have then if we had that dedicated funding source i think that it is heartening but also people letters march. they see that gridlock on our street where people are flocking to cities and if we maintain the growth to take

it planted church that is public transportation i like to use the example that is emblematic of what the federal government has failed to do it belongs to the federal government and we're fighting over who will fix of bridge and it belongs to the national park service apparently they have a lot of bridges across the country that are in similar disrepair so i cannot agree with my friend more oddities are about leadership so i had this discussion recently i want to ask my a colleagues to vote and they will have to ask their voters to do something that we may not be around for.

in the bill comes due it will be five 1/6 years from now but it is coming to. even though i may or may not be here and ask the tough questions for the additional revenue so i want to be that of mayor to fix it once and for all. so all of the members of the congress that we don't have to senators as you know, laugh laugh just saying. [laughter] so we talk to their senators but everybody across of a country in scrapping for

that same page reconstruction divided do that for my infrastructure in the district certainly we could expect that of the federal agencies these are the priorities that have to get done starting with the national park service is not the way to get there. but in addition to transportation and energy i would like to think of us as affordable housing as part of the infrastructure as well. as that crumbles they just change uh character of the city is the federal government has been a partner less so recently and even to be less involved for the affordable housing that they like to approach a way to keep affordable.

>> you mention the voters a willingness to pay for infrastructure. barrett is some other evolutions. we are realizing that affects health more than we previously realized when we redesign the downtown streets now be redesigned around people so we have rebuilt the entire downtown grant and to break ground on the street car system that there was no debt to create the citizens are willing to invest but if you want to increase taxes you have to have that compelling argument in without a funded opponents you are wasting your time. >> i try to expand the of

list of infrastructure with the affordable housing for a long time with the investment trust in the point about this in spot on n the park service is pardon of the up portfolio as our colleagues said and educational institutions are part of the landscape but the financing challenge there is a couple of tricky things. but right now there is a

push from companies to use that infrastructure challenge as a way to get a huge tax break that is what the repatriation on language says there were ways to do that that would be fair to those that create jobs in america to pay the full tax rate and day are working things out but we have to be careful there was a clear mandate for public policy that did not incentivize the movement of jobs offshore. there are ideas that they will weaken the united states that strikes me is something nobody voted for. but the challenge is with political leadership to

support financing at the state and local level but also the federal level with more flexibility. . . by the politically urban rural divide of candidates and we now have a situation the executives

and legislative branches have been elected by voters and they look at the republican platform that talks about the urbanization social engineering is a democrat and republican how do you think about the future of urban urbanization. >> not a lot of people live in washington, d.c.. [laughter] the divide is real and it's been well chronicle chronicled and pn the state legislatures frequently but i'm not seeing a disconnect whether you are talking water or roads or streets i think it's universal so there's reasons to be for and against things but i don't think

it's going to play out on infrastructure. i should add that the advent of the autonomous vehicle will have more to do with change and the environment more than anything our lifetimes it is more around the corner as well. >> my name is stephanie at nrdc. one of the opportunities presented in the infrastructure bill is an opportunity to reimagine local empowerment. we understand that president elect trump isn't necessarily looking at the fed to be the leaders on this there might be a good opportunity for state and local. so 36 governors are going to be up in 2018. as the mayor was tal