this power from maneuver from the sea. next slide. and there are six areas. first it's taking care of our people and maintaining our war readiness and reducing energy use. fourth, and important, promoting acquisition and integrity in how we do our business. last was to drive innovative solutions. next slide, slide four, around the world right now the navy is currently deployed or under way and deployed 156 ships and four aircraft carriers and significant number of marines, including 15,000 in afghanistan

and as you can see, the two areas for the department of defense was 29 ship ts deployed to the middle east and 52 deployed and under way in the pacific. we are where we need to be and will continue to operate in areas around the world. in terms of dollars, this gives you 15 years of data and i want to emphasize, starting there in 13, you can see that the budget is for $190 billion in the base and $14 billion i'll talk more as we go but going from pb 12 to pb 13, 13 through 17. you can see that there's a quantitative adjustment. we're still able to carry out our missions. net effect over this is that

from fy-12 to 13, this is a reduction in nominal growth and continues out with 2% real negative growth in 15 whereas it ends up being 0.7%. there is a con strax here but the bottom line is, i think where we position our forces, we are well served. next slide. and this will be my last in terms of strategy unless there's questions on that. i really want to emphasize, what started in the spring and i've been budget officer for three years. my third time briefing all of you. 11 was no fit up in 10. 13 has been what we call an inflection point. we're out of iraq focusing on the world going ahead. fiscal pressures on the united states. we're already looking at what can happen in owe 14 and then what is happening with deficits around the country. the emphasis that came on is what can the department of

defense do but still what do we have to be able to do for what we can do with the money that we have. so there's two arrows of economic realities out there and the budget control act along with the desires for strategic review. at a high level of discussions along with the combat ant commanders and leaders in the jcs and osd as well as played out in two and three-star meetings among what many call the three-star programmers. this was an interim processes as to what does it bring to bear and what can the force do and the bottom line is, a restructured force and i'll show you slide by slide what that means and then you see the $58

billion. that's going from 13 through 17 and 13 through 17 in pb 13. >> a reminder that you can read the president's entire budget request online at c-span.org. also, hearings and briefings related to other web pages at c-span.org. join us later tonight for more from american history tv. the focus is george washington. historian smith reflects on the first president from his home. american history tv gets under way on c-span3. tonight on c-span, from this world's economic forum in switzerland, see the international monetary fund along with other global leaders as they talk about the future of the world's economy.

>> no one is immune in the current situation. it's not just a eurozone crisis. it's a crisis that could have spill-over effects around the world and, you know, we'll hear from others but what i have seen and what we're seeing in numbers and at forecast is that no current tree is immune and everybody has an interest in making sure that this crisis is resolved adequately. >> i have been in public service for over four decades. let me share with you, i have never been as scared as now about the world. what is happening in europe, looking back at what i experienced in 1980, the crisis we had. and the crisis we had in the 1990s, this is a very big issue. first of all, i agree entirely that nobody is immune. we are all connected to each

other. >> and you can see this whole discussion tonight at 8:00 p.m. eastern on c-span. we'll have more from the world economic forum tomorrow, including the economic future of africa. plus, the ceos of several major corporations about the role that their companies are playing in the global economic recovery. >> we got started because there are a lot of conservative thinkings that work across issues. but there had been no single organization that works on economic policy, domestic policy, national security. >> president and ceo of the center for american progress on the mission of the washington, d.c. based think tank. >> you know, we think that there's an ideology behind arguments made in washington with very little facts hibld th behind them and part of our job

is to make the arguments and the factual arguments behind our own views and i do think that sometimes, you know, when the facts don't argue for our position, we examine those positions because, you know, we unfundamentally believe the most important thing is to be right about what your views are. >> a look at the center for american progress sunday night at 8:00 p.m. pacific on q and a. as part of his 2013 budget proposal, president obama has requested for the transportation, a 2% increase over last year's budget and includes plans for a six-year, $476 billion transportation infrastructure bill. up next, transportation secretary ray lahood testifies about the requests from his budget department. it's about 90 minutes. >> the hearing will come to

order. i want to welcome everybody to the senate budget committee this morning. >> the hearing will come to order. our witness is the secretary of transportation ray lahood. we are lucky that he can be with us this morning. my thoughts are with your son, sam lahood. most of us know that sam is one of the 16 american nongovernmental american workers currently banned from leaving

egypt. sam is with the international republican institute. one of my constituents, stacy hog from fargo is also among those barred from leaving. stacy is with the national democratic institute. both the ira, iri and mdi were created by congress to foster and strengthen democratic institutions around the world. the fact that egypt has taken this action is beyond the pale. it is completely unacceptable. these young people are doing important work, work that is supported directly by the congress of the united states to support constitutional governments, to support democracy. there could be no higher calling. and for the egyptian government, egyptian authorities to trump up these really farcicable charges, i was on the phone with stacy the day before yesterday just

after they received the formal charges. they are farcical. i urge the egyptian leaders to drop them against stacy and sam and all of their colleagues. we'll be taking additional steps in the day as head to register our very serious concerns about these actions that are absolutely outside the boundaries of the relationships between countries that respect each other. i want to begin that way. now i want to turn my ascension -- >> it is very troubling matter. your son is held there. in egypt to try to help egypt and help them and work with the people and it's deeply distressing that we have a nation that i have supported relationships with. i believe it's good for egypt and the united states. we want to see egypt prosper and do well. and they have. they have had some traditions of freedom and liberty and egypt. and to see this happen now is very distressing. i've been briefed on this subject. i take it very seriously. if i have the opportunity, maybe i will in the days to come to raise that. in different forms. i'll be looking to doing so. i take it very seriously. it is a matter of the national security to the united states. our young people out to officially part of our

government institutions being detained like this is not acceptable. and we just have to make that clear. >> thank you. we hope people are listening and they understand how seriously we take. this i graduated from the american air force base right next door in tripoli, north africa. so i lived in that part of the world for several years. and they know senator sessions may be traveling to that region in the days ahead. i hope we can send a clear message of what is acceptable behavior and what is completely unacceptable. it is completely unacceptable to be detaining young people who are there to try to help the people of egypt. and we want to see this happen now, it's a very distressing and i've been briefed on this subject just yesterday and i take very seriously and if i have the opportunity, and maybe ill in the days to come to raise that in different forms, i'll be

looking forward to doing so. but i take it very seriously. it's personal because it's your son and we know and respect and like you but it's also a matter of national interest to the united states that our young people are doing important work, would that is supported directly by the united states to support constitutional governments to support democracy. >> i graduated from high school from american air force base in tripoli so i've lived in that part of the world for several years and i know senator sessions may be traveling to that region in the days ahead.

i hope we can send a clear message of what is acceptable behavior and what is completely unacceptable. it is completely unacceptable to be detaining young people who are there to try to help the people of egypt. with that, i want to go to our hearing this morning which focuses on transportation. transportation infrastructure is really the foundation for our economic growth. and it is critical to our ability to keep up with our global competitors. so even as we look to cut spending to bring down the deficit, which we must do, we need to insure the transportation funding remains a priority. yes, we have to cut spending. we have to be smart about it. we can't afford to cut areas that are vital to future growth. that would be counterproductive and would ultimately worsen our

long-term budget outlook as well as our long-term competitive position. investment in transportation can also play an important role in stren thenging the economy and creating jobs in the near term. so i'm pleased the president has called for a significant up front investment in instra - infrastructure. this also provide a good value to the american taxpayer because interest rates are low. in my state of north dakota, investment in our transportation infrastructure is not keeping pace with our growing needs. mr. secretary, you've been to my state.

i appreciate you going there. we have an energy boom that is unparallel in the united states. the formation which is now made north dakota the fourth largest oil producer in the country, we are very close to a time in which we believe will be the second largest oil producer in the country. that has created a demand on infrastructure that is truly staggering. i've just been in that region of my state in the last several weeks. for every well that is drilled, it takes 2,000 truck loads for equipment, for water, for mud. 2,000 truck loads for every well. mr. secretary, the major highways in that part of our state are two lane roads. we've got chaos. i met with law enforcement throughout the region just weeks ago. they showed me what happened to waiting times, what happened to people trying to get on the highway to get from their farm other ranch to the town.

and a guy come and tell us that there have been times that he had to wait an hour at his road getting on to the main highway because of truck traffic. no stop sign, no stop light. so we've got an absolute critical need that really is a national priority. developing this resource is a national priority. our road network simply can't handle the extraordinary increase in truck traffic as a result of energy development. so our vast energy reserves can only benefit the nation if significant investments are made to upgrade our roads. i believe there needs to be a national energy corridor funding as part of the next transportation bill. there are place that's are simply a national priority. we've got to make them a national priority. it's clear there's a tremendous

need for infrastructure investment throughout the country. the american society of civil engineers gave our infrastructure a grade of d. d. as in dumb. we even rank behind barbados and oman. we have fallen one spot from our ranking last year when we came in 23rd. investment has been falling as a share of the economy. according to the congressional budget office, total federal, local and state spending has fallen from 3.1% of gdp in 1961 to 2.4% in 2007. we risk falling behind our chief global competitors. already we see china and europe are investing far more in infrastructure as a share of their economies than we have as a share of ours. china is spending 9% of its gross domestic product on

transportation and water infrastructure. europe is spending 5% of gdp. the u.s. is half that amount at 2.4% of gdp. there is, i think, widespread and bipartisan agreement on the need for further infrastructure investment. last july the carnegie endowment completed a study on the nation's infrastructure. the study was spear headed by bill bradley, former homeland security head tom ridge, somebody you know well, and former u.s. comptroller general david walker, somebody that's testified before this committee

they concluded in their report the following -- integrated efficient and cost networks that provide timely access to goods and services are the foundation of a 21st century economy. if america is to remain a global economic power while advancing our common aspirations for a better quality of lie, we need to reinvest in america. especially in our transportation infrastructure. if living within our means includes good husbandry of our existing system, we need more not less investment in transportation.

that means more revenues that are wisely spent to meet our obligations for ourselves and our future generations. i hope people take a look at this report. senator bradley, secretary ridge, comp controller walker make, i think, a compelling case. here's what the obama administration is proposed in its budget for transportation. first, $50 billion for upfront infrastructure investment in 2012 to boost economic growth and create jobs. beyond that, i would say, i asked those who and posed it, how long did it take to build the pentagon? well, they weren't sure. nine months. we built the pentagon in nine months. we have to get back to that

american spirit. and i said, there are times when regulations need to be waived. i understand the need for regulations. i think all of us do. i think there are times when you've got urgent needs when there's got to be commonsense applied and i hope very much we're able to find a way to do that. the second piece of the president's proposal is a six-year service transportation reauthorization. that includes 318 billion for roads, bridges, and improving safety. 108 billion for transit, 47 billion for high-speed rail and 3 billion for tiger grants which is local teas to fund high priority transportation projects and i must say we were the

recipient for right in the heart of the energy boom to have a bypass for that city. and it's going to make a world of difference. absolute world of difference. and that was hit by the devastating floods. we had 4,000 homes destroyed in that town. this bypass, you should know, mr. secretary, not only did it make a world of difference for energy traffic, it is going to help the recovery of the town in the devastating floods because it's one of those things serendipity that bypass is going to make the recovery for that city go much more efficient. it's almost some greater power, we're looking down, and got you to make that tiger grant for that particular intersection and

bypass at just the critical time. it is a god-send. the president's budget proposal is to pay for the six-year trans sags reauthorization from savings from capping war costs. look, that is controversial. we all know that is controversial. we need to talk about it. the budget also calls for reclassifying spending as mandatory, subjecting it to rules which is a proposal the administration offered last year. there are people on this committee who are strongly opposed to. that they're not going to be here this morning to register their views. i'm sure they've registered with them, those with you directly. i look forward to hearing more from the secretary about the proposals w that, i turn to senator sessions and senator sessions, i have taken a fair

amount of time here. if you feel free to consume a like amount of time in your statement. >> thank you, mr. chairman. we have a spirited committee. but you have presided fairly. you treated us right. if we cross the line sometimes, the chairman has a right to get us in line. and i appreciate that. i appreciate your fairness. thank you, secretary lahood, for joining us to day as we examine the president's budget and funding request. first, i would repeat that your family is in our prayers. we intend to be as helpful as we possibly can in that situation. and you know, america is faced with a growing fiscal crisis. we're borrowing 40 cents of every dollar we spend. we're facing our fourth straight deficit n this country, annual deficit in the excess of $1 trillion. we have never had this kind of debt path before. all across the country, families

are tightening their belts. cities and counties and states are doing that. the federal government has got to do the same. our severe fiscal challenges present an opportunity to make government leaner, more productive, and less expensive to achieve more efficiently and effectively. as the chairman said, we have to set priorities. priorities means making choices. i'm prepared to support and choose transportation as a high priority. unlike so much of what washington does with taxpayers' money, good roads are tangible life changing matters that make the economy more productive. it does that for decades. it kree aids american jobs and virtually all the matters that go into those highways are american produced. and the americans can't be

produced in a foreign country. it's here. so i think it's a way to create jobs and permanent improvements in productivity. now the tragedy is that there was a great opportunity as you eluded to, mr. chairman, to advance our highway system as part of the president's stimulus package. instead, nearly $1 trillion of borrowed money was taken away on failed proposals that succeeded only in sinking our nation deeper in debt. i do not believe it made a significant improvement in our economy although you and i would disagree. and good people can disagree on that. certainly more people are out of work today than when that bill passed. but the president said his stimulus would be used to repair our nation's crumbling infrastructure. it was sold on that basis. repeatedly we were given stories that our infrastructure is crumbling.

it went to state aid. it went to social programs. it went to all kinds of things. here in the "los angeles times" just a few days ago taxpayer money used to maintain million dollar yacht, yacht of the city over $500,000 went to that. we've had those kind of stories time and again. too little of it went to road and bridges and crumbling infrastructure. now the president's budget will further undermine america's future by using foreign loans for policy and unnecessary projects in this infrastructure. the president's budget another $47 billion for high-speed rail, which congress has already declined to fund.

we can't justify a massive nationwide high-speed rail system at this time. there may be specific problems that will justify it in certain areas but not nationwide. not the kind of problem that will utilize $47 billion. it lumped amtrak into the highway trust fund where it will further destabilize the fund weakened through gimmicks we're having here making funding. the president's highway reauthorization proposal increases spending $231 billion above incoming revenue. that's a lot. $231 billion above the revenues we've been operating under for the trust fund. last year the president proposed to pay for a similar increase in transportation spending with this famous not gas tax tax. a tax that somebody was supposed to pass but it wouldn't be a gas

tax because people might not like that. of course, no such tax was passed of any kind to fund the highway. cbo scored it to bring in zero dollars and that is correct, it brought in zero dollars, this mystery tax. this year the president offset the cost of this new spending program through imaginary money that would be obtained from long planned reductions in our military operations abroad. now, i think we should talk about that. there is no dedicated source of funding for the war. the war was funded with borrowed money. we talked about it. we debated it. some people said there should be a tax to pay for the war. no tax was raised to pay for the war, it was borrowed money.