were almost at 700,000 jobs lost per month, including the january number of 741,000 jobs lost, which is the greatest one month total in the history of our country. that is not something that is going to turn around overnight. the american people understand that. the president understands that. that is why we have taken important steps to get the economy moving again. is it going to take some time? absolutely. it is the president impatient for results? you are him say that last week. -- you heard him say that last week. . .

. >> does that factor in if you are worried about this? >> we are going to continue to watch the situation in california and other states that are dealing with dramatic downturns in their own fiscal situations. as i said yesterday, about $144 billion in health care and education money are going directly to the states that will help deal with some of the downturn. but obviously each of the states, like is happening at kitchen tables across the country and in washington, we're all going to have to make very tough choices. >> so your under this assumption? not just to slow down the recovery but --

>> we will decide what is in the best interests of our overall economic health and do what is necessary to ensure that we continue on our path to recovery. >> robert, you said hopefully the worst job losses are behind us. unemployment will hit 10% sometime this year, do you expect that? >> absolutely. we went from 9.4 to 9.5. it will not be next month, but i would assume in the next three months. i think it is quite clear that we will hit that number. again, as we talked about earlier, we have to create 150,000 jobs per month to stay at the level that it was at the previous month. yes, i think we're headed toward 10%. >> the country is crossing the threshold of having these stop

losses at these levels -- it will be a while before the country passes this threshold with we are sustaining these levels? >> yes, we are going to continue -- implementing and unemployment are -- tend to be one of the last things that improvement in an economic downturn. again, understanding the recession that we are in is a statistically the worst since world war two. obviously this is the worst economic crisis our country has dealt with since the depression. insuring that financial stabilization happens, ensuring that small businesses are free to barrower, consumer confidence goes up, people begin to spend money -- a lot of those things will have to happen until

businesses feel confident in hiring more people. a lot of those things will happen -- businesses will have to make these decisions over the course of a year. >> let me follow up on health care reform debate yesterday. what about this woman who got so much attention? >> my understanding is that a third-party has been in touch with our staff and with her about helping her out. i do not want to get into a that is for her privacy. -- i do not want to get into who that is for her privacy. >> he said the actions in north korea are having some impact.' could you comment on that? >> first of all, the impact

alone of the united international community is tremendously important. obviously there have been possible to predict positive developments over the past few days -- obviously there had been positive development as it relates to the north koreans. i do not want to get more specific than that. >> did that include the launches from this morning? [laughter] >> no. they said they would launch these missiles. i do not think it is surprising they have launched these missiles, no. >> you might want to go into specifics of what these impacts have been. >> if you turn on cable, you can see what these are.

[unintelligible] >> i take the north koreans at their work -- word, that they will continue their provocative actions. what is important is that the international community is united in isolating those actions. that we're taking all the steps we need to to address any of this possible actions. united front that unit -- international committee has put up insuring that proliferation of weapons and materials from north korea to other countries does not take place are all very positive signs as it relates to north korea. >> more on judge sotomayor year. -- judge sotomayor.

policeman, firemen, teachers -- this is not how it was described before congress. can you talk about the layoffs of these three employees? >> there are aspects of the recovery plan that help state and local governments hire or retained police officer. there is it education money to hire and retain teachers. -- to higher andre and reatain . there were aspects of that recovery plans to ensure that took place. >> [unintelligible] >> i think the president was declaring the fact that we're seeing an increase in construction projects, 1900.

we're seeing an increase in the amounts of money that is going out. we're seeing an increase in spending that goes directly to state governments, of cushions the very blood that we are talking about as and the shore all they are facing. -- as in the shortfall they are facing. >> is the president satisfy? >> no. he will not be satisfied until we see positive job growth. we're seeing holsteins in the notion that, as i said earlier, if you look at some of the quarter's of job loss, there isa lessening in that number from 691,000 in the first quarter. >> many economists look at of larger structural #.

>> if you take into account -- >> >> [phone rining] >> that is either a cell phone or the ice cream truck. someone go get my wallet. ice cream on me. [laughter] we are in the midst of the worst economic recession that many of us have seen in our entire lifetimes. we are going to continue to take the steps on recovery and implementing that bill as web -- as well as the other factors to stabilize the economy and turn it around. >> you said the administration will look at a new proposal from states that our cash strapped. are you inviting states to come to the federal government to seek remedy? >> no.

[laughter] look, again -- > >> it is important. they are not going to listen to you. >> i appreciate your endorsement. all i was trying to say is that the administration will evaluate and take action on what ever we believe will help the economy. that is what we have done up to this point, and that is what we will continue to do. we are open to do anything that will help turn the economy around, create jobs, stabilize and lead to job growth. obviously the administration continues to look at everything. >> republicans are agreed that the -- grieved that the

documents pushing hurt forward our assets the time that they were not able to fully review them. what is the white house response to that sentiment? >> the best review of how judge sotomayor works are the 17 years of legal opinions that she has written, and that she herself has worked on. not boxes of documents that she did not write, review. understand what we have seen -- first of all, this was the same organization whose board she was a participant in in 1993 and in 1998 when the senate approves her to be a judge on each of those occasions.

it is curious to me why a people -- why a group of people would have expressed great concern over the course of the past five weeks that they have had insufficient time to read 17 years of opinions that she wrote. now they find it's -- now they find there is insufficient time to review material that she did not write. i think there has been plenty of time to review the record of judge sotomayor. we look forward to the hearings as scheduled. we look forward to her nomination. we look forward to her being just this -- justice sotomayor in early september. >> i am itching to do this. [laughter]

>> the council office has advised me to ask how long these questions are going to be? [laughter] >> now you are down to $1.50, robert. >> yes, sir. >> the president praised the progress of president kennedy's bill. in that announcement, my understanding is that is -- it is potentially a gimmick or (expansion of medicaid to cover tens of millions of people and it is to be paid for by the bill. >> are you asking me whether or

not the estimate that came out today is one that is accurately reflecting a complete evaluation of the health care program? >> in the statement i believe -- >> i know what the president said. i am just wondering if -- i think i made is a dealer at argument about -- i think i made a similar argument just a few days ago. that seems to have fallen on deaf ears. let me give you the answer you were looking for it then and now. this is obviously something that was done not by us, but at the congressional budget office. the health committee does not have jurisdiction over a portion of that legislation. that will be dealt with in a finance bill. as to their so-called incomplete analysis, i would point you towards the congressional office.

many of these things are demonstrated in the health bill. again, i think the president believes on capitol hill among businesses and among the american people we are making progress towards moving towards comprehensive health care reform. go ahead. >> one of the things in the report today about the board's that judge sotomayor was on it, do you have any reports on the conflict of interest? >> we have very strict rules on conflict of interest. we are implementing and working with stakeholders on each and every aspect of bringing about comprehensive health care reform, and the president appreciates her service and does

not see that there is any conflict in that. >> was anyone from the white house invited to attend the white house -- washington post a quick? >> i do not know if anyone here was. i think some people at the administration may have been invited. i do not believe, based on what i have checked, that anyone has accepted the invitation. obviously the council would have to review an invitation like this, and i think it would exceed what the council -- w that council would feel it exceeds what is appropriate. i mean the administration.

>> was the council administration involved in reviewing these administrations? >> i can check on that. i do not know. thank you. >> [unintelligible] >> i wanted to stay here and catch up on work. it is tomorrow. >> we will be live to the white house in a matter evidence -- matter of minutes. president obama will be live in the rosebush talking about the economy and employment. we will take you there live when it gets under way on c-span. in the meantime, conversations on budget issues affecting the states. >> we have the deputy director at the center of budget priority. think you for being here.

>> great to be here. >> what is at the heart of most of the state's fiscal woes? >> unlike the federal government, states cannot print money. the programs they provide for people are provided by tax revenues. in a recession, people find less. revenues go down. right now states are seeing the largest decline in tax revenues that they can remember. if you have to go back to the great depression to see something similar. it is happening in states run by democrats and states run by republicans. the cruel irony of this is that it is happening just as the recession is driving up people cost needs. -- is driving up people's needs. >> when a state makes the decision to raise the state sales tax, did they work

against the buying decision? >> to some extent. the thing is, of what states are doing -- over half the states now are raising taxes. history tells us that is the right thing to do in recessions, because they need the revenue. it is important to point out, none of the states that are raising taxes are doing it instead of spending. they are finding cuny to balance the crows to fight a downturn. >> would you explain this last paragraph of allstate's budget -- about state's budgets? states are in for a very, very rough ride. why is that? >> we put out some reports on state's budget that's at the

same thing. we estimate that already 12 states have budgets that are out of balance because revenue declines are ongoing. the problem is -- you set aside how much money you think you need to spend over the course of the year to meet the public cost needs. -- the public's needs. part of the problem is because of a rigid because they depend on tax revenue, unemployment tends to ease only slowly. -- part of the problem is because they depend on tax revenue, and employment tends to ease only slowly. a bad situation could have been a catastrophic situation. the money is basically helping the states to close about 40% of the gap between public needs and available resources. it is doing the job. it was never intended to do the whole job, but it is a good thing there.

>> big corporations have similar headlines. stimulus projects bypass heart- hit states. have you had a chance to study where these dollars are going? >> they are going everywhere. that is important to point out. they are needed everywhere. you can take a look at certain things. states with the highest unemployment are not getting the highest stimulus per capita. it also takes into account spending on imports and programs. nevada may not beginning that height of stimulus, but they lack in population that is on medicaid. it could have been based something more like unemployment, but we cannot let that obscure the major points. >> the lead story in the "new york times" this morning,"

facing deficits, many schools close summer programs." >> states are making very tough decisions about what to cut and what to fund. no one will be happy about this. the bottom line on budget cuts that states are making, they are brought in devastating in a lot of places. >> the federal stimulus what is channeling 100 billion to public education, and education secretary arne duncan has repeatedly urged states and districts to spend part of the money to keep schools open this summer. thousands of districts have ignored his request. >> it is interesting. there are complaints they are not using the money the right way. there are always disputes over the margin of this, but the most

important thing about the stimulus is helping the state still 40% of the gap in their budget. >> another aspect is state's health care costs. it says the recession is drawing more people to medicate. >> that is the irony at putting out before. if you are working and have health care benefits, you lose your job and then you need the government to help. that helps to define the nature of this problem. >> where do your colleagues see this going? >> it is a couple of tough years. the brand new fiscal year budget was excruciating to put together. it will be again for the next couple of years. states will be helped in the way that they will be increasing revenue, but there will be no

easy answers, and in most cases, there is no single answer. you cannot solve the problem by budget cuts alone. >> i would like to go back to the telephone calls. we would like to get your perspective on what is happening in the state. we had a caller earlier who said one of the real problems is that states have pension obligations that are not practical in today's societies. >> during the course of the 1990's, some states cut taxes. they placed a bet on wall street, which they lost. it is a little simplistic to say they are getting too much money or too much benefit. the government should set an example. i understand the frustration as people are facing cuts.

there are furloughs, pay cuts, so it is not as if state workers are coming through this unscathed. let's take some phone calls. this is peter honor democrats line. caller: i think one of the biggest problems that many of the states are having is that they permit themselves to borrow money. when they borrow money, they feel like they can fund more generous programs. my state has to -- can only spend that which it is projected to take in, and it prioritizes its spending in two categories. if the revenues of do not meet expectations, and those things in the lower categories to not

get funded. yet, ark., which is hardly a rich state, does not have the same kind of budget deficit. we were a little concerned that we might get left out of some of the stimulus money because we are a little bit more fiscally responsible. i would like your comments about that. guest: for the most part states do not barrel for generating -- general operating expenses. you project how much you are going to spend, and then as revenues go down, you find that you did not have the money. it is kind of like you work hard and pay your bill, then you lose your job, you cannot pay the bills because you lost your revenue. host: this question comes from erin. however states like south carolina that refuse to take the

stimulus money doing with their budget? -- how are states like south carolina that refuse to take the stimulus money doing with their budget? callerguest: there was a call fe tax increases that the government would not accept. they had their problems. they should have taken the stimulus money, because it would have helped people in need. host: this is tony watching us on the republican line. caller: think you for taking my call. the blood is pouring adamite years listening to the knuckleheads about the stimulus helping end the project. it is the most absurd thing in the world. the government has not created one actual drop in the history of the world. it is a progressive movement that says tax take away control.

i need the government to give me clean water, protect my borders, and give me a couple of police on the street. get out of my way. the question is, when i sit here and listen to pelosi talking about protecting turtles and worrying about swine flu, what i wanted to do is put your books down, work on a car, to a real days flitting in and say i cannot afford to give to these new wonderful programs. host: do you see what is happening in state as an opportunity to right size government? caller: what is going to happen is we're going to have a great roman empire will be destroyed. all of this social programs will fall apart. we will bankrupt america. i pray this happens as soon as possible.

keep spending, keep taxing, and then one day we're going to have a revolution in go back to the founding fathers. how about this wonderful workd, no. if your checking account says you only have $110, how can you look at the american people and say we're going to print money and now you have 500? host: we got the point. you got the word knucklehead and they're more times and i have heard lately. as you listen to that, what is your comments about what he had to say? guest: i guess where iced respectively disagree -- wehre i respectively disagree is that the government does provide jobs. who pays for education? it is a little bit of a simplistic view to