that's ba -- lonye. stutter. now i don't and i don't care to go out publicly say something bad about me or the agency, but from the my perspective, you no herbs that's just ludicrous. i'm not going to say, here's what we're doing in utah that would be ridiculous, too, because it would give our adversaries a tremendous amount of advantage. we're not going to do that. >> hi. my name's -- from china central television. according to the american newspapers, last month there are six airmen specially trained in cyber warfare and just graduated from the school. so it's a kind of movie evidence -- another evidence of showing what america is doing as a

priority from the general battlefield to the warfare. and another question -- >> one question. >> okay. thank you i. think defending our country in cyberspace is one of our most important missions and to ensure that we're secure and i think the president and secretary of state have laid out those limits. in the speech and it's on the white house, i won't accurately quote it, the comment, we'll respond to those attacks in different forms. so from our perspective, we need a train and ready force to protect this country and we're doing that. it's not just military. it's military and civilian. we have some great technical capabilities here and i think we've got to set those and we've got to stop the theft of intellectual property and other thing that are going there. you know, i think part of that is setting the defense. we can do that. and part is the sacreligious

relation lation legislation, and i'd think we can fix that. and i have time for one more question. let me guess. you look familiar. >> ellen, "washington post." to give you the opportunity to educate you say you're not interested in reading e-mails of americans. so what type of data would you want to be getting from the private sector in realtime and if you got it, what would you do, network feed to block or prevent and attack and do you have the authorities that you need to do so right now? >> that's a great question and thanks for that, because i do think going into that a little deeper is absolutely important. so in the interests of making this understandable, i'm going to use signature a, signature b, signature c, which could be pieces of metal ware, remember that a machine is going to see

this in exa decimal format, but ports that come in your system, could be the ip address it comes from or the website or some combination thereof. what the anti-virus world does is it maps that out and creates what's called a signature. so let's tall that signature a and let's say, sir, you're the power grid. if signature a were to hit or try to get into the power grid, we need to know that signature a, who's trying to get into the power grid and came from ip address x going to ip address y. we don't need to know that what was in that e-mail. we just need to know that it contains signature a, came from there, went to there at this time. and the answer is, yes. if we know at network speed we can respond to it. those the authorities and rooms and stuff we're working our way through. so you have a tremendous ability to help inform the american

people in this area. i would offer that -- that many of you could get with companies like mcafee and semantac and say, how do you do that? and then what is it that we should do if the pourer grid, you can be the financial sector, or the financial sector, or our government network. i'm sorry. get the government network. if they were attacked what do we do? you see, we're not sitting in the power grid. we're not sitting in the financial sectors. we do of vrts of the government covered. so i don't see, d.h.s. and the fbi doesn't see what's hitting them. somebody has to tell us. so that information sharing portion of the legislation is what the internet service providers and those companies would be authorized to share back and forth with us, at network speed. and it only says signature a, ip address, ap addres pchip addres.

it's interesting to note, i think. you know, i'm not at lawyer, but you could almost see this. it's interesting to note that a bad guy sent that attack in there. mow, the issue is, what about all the good people sending information in there's? are you reading all those? the answer is, we don't need to see any of those. only the ones with the malwear. and only the nair cfact that it there. you didn't have to see any of the original e-mail, and only the ones that had a malware on it did you need to know that something was going on. did that make sense? >> -- [ inaudible ]. >> so now the question is, what is -- what is the actual event that's occurring? and so if it's the isps or others, is this an attack on country? and if it's an attack on the country, what you don't want to dot is say, oops tlshgs went the power grid, the financial

sector. wake-up general alexander. it's time for to you go to work. the only work i have, going down to the hill to explain why we didn't stop it. yeah n yeah. that will be a full-time job after that. the reality is, defending the country this time is going to take realtime information and sharing and the do.d. working together and others. with that and than and that ow kerring now we have a problem that the defense department has to act. dhs has a part in helping in that. fbi has a part in that. d.o.d. and i.c.e. has a part in that. those are the things we're working through but i think the key part is the legislation. so from my perspective, helping people understand technically exactly what we're going to do there is absolutely vital to our

future, and ones that you can all help us get that right. thanks for taking the time today. thank you very much. [ applause ] if i could ask everybody to remain seated for the next panel and panelist to join us at the podium. at 5:00, live to capitol hill where the house rules committee will hold a meeting on repealing president obama's health care law. republican house majority leader eric cantor introduced legislation to repeal the health care law way voith a vote for t wednesday, july 11th. we'll have the rules committee meeting beginning at 5:00 p.m. eastern here on c-span3. i don't mean to sound like i want to go crazy and "regulate the internet ". on the other hand, i don't believe the internet should exist as a place outside the

law. >> co-executive editor of the "wall street journal's" online all things d, walt mossburg on the future of personal technology and the relationships between technologymakers and the federal government. tonight at 8:00 eastern on "the communicators" on c-span2. this is c-span3 with politics and public affairs programming throughout the week and every weekend, 48 hours of people and events telling the american story on "american history tv." get our schedules, and see past proms at our websites and join in the conversation on social media sites. new jersey governor chris christie spoke this morning about his fisk's agenda and efforts to reform the government in his state. the govern around democrats in the legislature have been going back and forth in recent days over the issue of tax cuts. governor christie spoke on the same tay president obama called or an extension of bush era tax

cuts for middle class families. a former u.s. -- he is frequently mentioned as a possibility vice presidential runsmate for mitt romney. good morning. direct herb of the center for innovation at the brookings institution and today we are pleased to welcome governor chris christie to the brookings institute. he was elected governor in november 2009 and sworn in as new jersey's 55th governor in january of 2010. he graduated from the university of delaware and attended the cigna hall university school of law. thereafter he joined a cranford law firm named partner shortly thereafter. he started his political career being elected as a free voter in morris county and serves as director of the board in 1997. in 2001 president george w. bush nominated him as u.s. attorney

for the district of new jersey a position held through 2008. in that role he drew national attention battling political corruption, corporate crime, human trafficking and gang violence and directed his attention to ethics during his tenure and spearhead add number of aggressive investigations against corrupt public officials and was able to build and inpressive 130 convictions during this time period. but what you may not know is that like many true new jersey natives, governor christie is a dedicated bruce springsteen fan. top date he's attended 129 springsteen concerts. that dates over 36 years. he told me in advance. so that is a bipartisan issue on which everybody can agree. this morning, governor christie will make opening comments and then we will have a moderated discussion led by brookings

seener fellow ted gair who co-directed as brookings. this event is being web cast and viewers can post comments and xp questions during the discussion at twitter #bichristie. so, please, join me in welcoming governor christie to the brookings institution. [ applause ] thank you for the introduction and for welcoming me here today. appreciate it and the opportunity to speak to you about what's going on in new jersey and how i think it applies to what we need to be confronting and discussing. not only in states like new jersey but in all the states across the country and our federal government as well. two weeks ago i signed mied they balance budget in the a row since becoming governor. it it's a budget that increasing spending on k-12 education to a record level.

$8.8 billion kniss year in state aid the k-12 education increases aid for tuition assistance, for children who need it to head to college. supports the notice sheer inable including veterans. of the working poor and makes a significant down payment 0 our pension obligation. the fact the largest single contribution that any govern hear made to our state pension system in its history, $1.1 billion this year. at the same time i used my line-item veto authority to vetoes 3ds 60 million in special interest spending so our budget this year in fiscal year 2013 which has just begun is still smaller than the fiscal year 2008 and 2009 budgets signed by my predecessor governor corzine. you know, pretty good budgetary success, we're happy with it. we feel we can do better but

there's one thing that did not happen i think should have happen and we're going to continue to talk about, and that's tax cuts for the middle class new jerseyans. interesting that i hear this morning on my way in that the president is now going to propose today extending tax relief for middle class americans. yet in new jersey, despite the problems that we've had for a tax cut to happen that tax cut was left on the table. at the last minute. let me give you background. i started off in, my state of the state address in january 2010, or january of 2012, rather, advocating for a 10% across the board income tax rate reduction. new jersey has the third highest income tax rate for any state of america, not only california and hawaii, just a shade under 9%. we believe reducing rates across the board would be one of the best ways to make new jersey more competitive to our neighbors. some example, our tax rates are

higher than the state of new york, higher than the state of connecticut and our neighboring pennsylvania has a top rate of 3%. so when you're competing in the kind of job market that we're all competing in right now, states are fiercely competing with each other and basically two ways besides the normal type of services states provide infrastructure and higher education, those types of issues. you really are competing on two levels. tax competitiveness which has two parts to it. what tax incentives are you lg to give, and what is the tax environment for the company onces it is there both for them and for their employees who they'll be asking if they're moving into your state to refloer relocate from one state to new jersey. that's the reason why i think tax reductions are so important in our state in the current environment. because we're competing. competing with other states that have significantly lower rates in some instances like

pennsylvania and delaware. and we're not competing well. in that regard. because of the atmosphere created over a period of years. so i abdicated for an across the board income tax rate. i have a great sense of humor. ship may not. not just because of native sons like jo like jo jon stewart, but retained a democratic legislature. i think they just wanted to see what would happen. we'll talk about that this morning, but the state senate president came back with a counterproposal, essentially income tax credit of 10% against whatever amount of property taxes you pay our state up to a cap of $1,000 per taxpayer. smern limits. i'll get into that. other limits put on it in terms of income eligibility et cetera. so as we moved along through the spring, i began conversations

with him about finding some way to compromise, to be able to bring a tax cut package to the people of the state. and we came to an agreement in the late spring of this past year on a 10% income tax credit that would be capped at folks with incomes under $400,000 a year. would exempt any business income that they made from schedule c on the federal returns, and would apply equally to all those people under $400,000 a year and we would increase our earned income tax credit, state earned income tax credit, increased from 20% above the federal level to 25%. this was going to mean everybody, $400,000 a year under, was employed in new jersey would be getting tax relief and we phased it in to be

fiscally responsible over three years. so the hit would not be unreasonable. until norm's politics set back in, we had an agreement. president obama went back to the assembly, his caucus, the lower house and decided what was much more important, this was reported in newspapers, extensively in new jersey it was more important for me not to go to it republican national convention in tampa and say that i got a tax cut for the people of our state than it was to actually give the people of our state a tax cut. unfortunately, this was a reverse to old politics seen relatively infrequently over the last 2.5 years in new jersey. and so we're going to have to have a fight about this over the summer. i'm looking forward to it. i called them back into session. they felt they were leaves june 28th. the end of the session, ready for summer vacation. our constitutional allows the governor to call the legislature back in for special session.

i did july 2nd about the importance of trying to reach bipartisan compromise on this issue, i gave a speech. making our state for kpetable and giving taxpayers relief was much more important than the politics of the day on a speech i have not been invited to give, i'll attend but have absolutely no knowledge whether or not heil i'll be speaking. obviously they're concerned about that. i offered my hand of compromise to democrats on the issue of compromise and the hand was slapped back. the question for leadership is what do you do? two options as i see it. it option one, go in the corner, hold your breath, say i'm not work wig these people anymore because they're mean, and therapy not nice to me, and they don't want to compromise, and just say nasty press releases and tell everybody how rotten

they are. or you can slhrug your shoulder and say the job were you given is more important than your ego or the politics of the day and continue to try to fight to get compromise reached. i think the evidence of the last 2.5 years will show you that i have consistently along with a number of leaders of the legislature picked the latter rather than the fore. and i think it's important to the review that at the moment to get context of the current discussion before was new jersey when i became governor in january 2010? let's start with the fact that we get to the job, my chief of staff of the state treasure came to my office and told me if we did not cut $2.2 billion from the current fiscal year budget, fisk's year 2010 budget, we were seven months into, within six weeks, that we would not make payroll for the second pay period in march. now, imagine new jersey, the

second wealthiest state per capita in america was going to have to give out iou's to state employees the second period of march? i don't know how you define broke, but that looked like broke to me, from where i sat. so we had two choices. we could either negotiate with the ledge slach around they made clear at that moment the beginning of my term that it would have to include tax increases. immediate tax increases. rote troe active tax increases. or, because new jersey's constitution is the most powerful governorship constitutionally in america, george will calls new jersey's governor america's caesar, i really like that -- a lot -- i can act by executive order and essentially impaneled the funds by executive order equal to the amount of cuts necessary. for those who have watched me

the last 2 1/2 years closely, vaguely, if you believe i picked option one you did not earn your invitation here this morning. you need to leave. there's no chance i was picking option one. i selected option two. sat down and went through 2,400 lines of the state budget, and found $2.2 billion in cuts, and made those cuts by executive order. went to the state legislature and presented them in a joint session speech. and after i was done, the speech essentially -- the speech was about 40 minutes long, given time constraints, i boil it down to about 15 seconds. i went up there and said, listen, you left me with a huge problem. i needed to fix it. you wanted to raise taxes pipe not going to. so i just made $2.2 billion in cuts by executive order i signed it. i fixed your problem. you can thank me later. have a good day and i left. you can imagine the atmosphere on the floor of the legislature after i was done. calmed all kinds of names.

things like, napoleon bonaparte and julius caesar, the great leaders of past i admire so much. the next day i saw the senate president, steve sweeney, coming into state house at the same time. steve, a democrat, from the southern part of our state. he's the president and as such the most powerful democrat in the state of new jersey. and he is the president of the ironworkers local. in new jersey. so like me, a shy and retiring guy, i saw steve on the way in, and i said, steve, you are know, i saw all those things you said about me in the newspaper today. you've really turned me around. i'm going upstairs to vacate the executive order and send this problem down the hall. you guys can fix it. all you need know about new jersey politics for the next 2 1/2 years from that date. he looked at me, hey, don't overreact. you know. i don't think you did all that bad. come on. it's politics. it's politics. but we inherit aed a huge probl.

before i game governor, 115 tax and fee increases at the state level in the eight years before i became governor. that's a tax and fee increase every 25 days for eight years. now, if you want a definition of how to kill the goose that laid the golden egg, look at new jersey the economy in the '80s and '90s. one of the top economies in the country among any of states and look what happened when we began to do that in the eight years before i became governor. 155,000 it private sector jobs lost under the previous administration. highest tax burden in the country. worst climate for small business growth. highest number of government workers per square mile, in the country. extinction. and all of those things were dropped in our lap when we came into office. now, when you've confronted with that with a democratic

legislature, you'd have to make some very specific and difficult choices. and we moved specifically into fisk's year 2011, which had a projected budget deficit of $11 billion on a $29 billion budget. 37% deficit. by percentage, largest of any state in country. once again, there was call for higher taxes. seemed to me that this call what it had gotten us at least in part in trouble in the first place. what we did, propose a budget that cut every department of state government. everyone without exception. and i had to make significant cuts, as you can imagine, to close a budget deficit of $11 billion, but we did. and the folks in the legislature sent me what's become en vogue apparently in some parts of the country, they sent me a millionaire's tax surcharge. now, you've got to understand first before we go too far down

the road about the history of a millionaires tax in new jersey, we already have a millionaires tax. in new jersey it's special because we have special new jersey math. you don't have the to be aware of. see, in new jersey, the millionaire's tax applies to all individuals or businesses which have over $400,000 in income. thus the millionaire's tax. $400,000 in income. it's a good name. but they couldn't get enough money so lowered it to $400,000. it you're trying to market your state around country, raises difficulty. if you have a millionaire's tax at $400,000, how do you market your state? this is how i did it. come to new jersey. if you're not a millionaire, but you like to feel like one. come to new jersey, because, we'll tax you like one. you can tell all your friends. yeah i've been there. that's right. apay the millionaire's tax. we already had a millionaire's

tax, brought us up to 8.97% for a surcharge on top of that to raise it to 10.76%. champion was then placing us only below hawaii at that point, california caught up quickly. hawaii at that point in terms of top tax rates. i vetoed that tax increase because it made us non-competitive, i thought, and you know, the senate president came down before, i vetoed it with the bill, he dlived it to me. cameras following him, delivered the bill and gave it to me and said you know, governor, here it is. they called it something. you know, always have a name. not like the tax increase. the fairness and justice for all. hey, maybe he won't read it. fairness and justice for all sounds good. sign right here. it will be fine. wait a second. sit down, steve, i don't want you to waste your time. i took my pen out, vetoed it right there and handed it right

back to them. i continued to push for my budget. that june wound up passing it with democratic votes. 99.9% of the line items i presented in february. i tell you those stories to set up the idea about what executive leadership can do. if you set out your principles, but also show that you're willing to compromise where appropriate. you know, they were testing me. in the first six months of 2010. i was new governor. they were a ledge slacher in charge for a decade. they were the veterans of trenton. i was the newcomer. legislatures will always test executives. and see how much they can get away with, how far they can push you, are you willing to stand for your principles or are you not? now, some people say when you

stand up and fight for your principling you're being an obstructionist. in becoming true only if you're not aring to compromise to get things done. the story of new jersey in the past few years has broken into a few parts. that first six months and then the two years since then. in the first six months they were testing meep in the two years afterwards, let me go through with you some of the really bipartisan accomplishments that have been put forward by this governor and the democratic legislature, which i think can be a model for what should be happening all across the country. after we passed that budget, i called them back into special session again, fourth of july weekend because we have the highest property taxes in america and needed ed ted to p cap. after negotiations we passed a 2% cap on property taxes in new jersey. a real cap. a hard cap. with only three exceptions. it's already working. last year property taxes rose with the program not already

fully phased in only 2.4%. that's the lowest increase in property taxes in new jersey in over 20 years. we then moved to reform the interest arbitration system that drove enormous increases in public sector salaries. 5%, 6%, 7% increases in public sector salaries and capped at a 29% increase and create add rocket document for arbitration. capped the amount of money arbitrators can be paid. no longer said arbitrator drag these things on, get paid a fortune, cost towns and unions a great deal of money. had a period of time to get the case, make a decision and capped at 2%. shows economic gain. we then moved to deal with what the biggest problem is, i think, for any of the states in the country, and for the federal government. and that is, entitlement clause. and in new jersey, that's represented by our defined benefit pension sys