editorials and things. it is not all about you. care about the causes, because very few people make money doing this. just examine your conscience and make sure your id for the right reasons, and figure out why you are in it. there are plenty of things you can do. hard work and humility are the key. >> now we have our microphones. . . microphones. wait until kathryn gets to you. >> you had your hand up forever. >> i'm penny star with cns news. the buzz about the sarah palin video is that it's the first political video she's made as far as running for president. so my question is, do you think that's true that it was the

first step in her seeking the highest office? if she does, do you think she can win? >> i talked about humility. my answer in all humility is i have no clue. my sense of however good my sources are is that she's not quite sure if she's running for president or not either. i have no real idea if that's -- my answer is i don't know. i think that she's probably taking advantage of this opportunity for good reason. she has been able to in a big way highlight this phenomenon. she's been part of the media having to acknowledge -- key part of the media having to acknowledge the existence of pro-life conservative women. i think that republican convention image of her talking about trig and talking about her life in politics and the rest,

it was a jarring moment for the media. i think she's running with that. and by running, i don't necessarily mean for president. i don't see it as a bad thing at all. i think it's a good thing. i think that video was a good thing. i understand there are lots of complicated issues. there are legitimate criticisms and all the rest. but that's a good video. what she's doing right now i think is a good thing. so thank you. bring it on. but i don't think everything has to be about presidential politics either. we're a ways out. anyway -- right here in the middle. >> hi. my name is cin contin-- christi intern at the heritage foundation. you mentioned single women are

detrimental to women in general because they largely vote very liberally, or for liberal candidates. my understanding of the feminist movement is that it's really to rebel against patriarchy. right now there's nothing more patriarchal than the government. for example if a husband told his wife you have to put a quarter in the jar every time you have a coke, that she would not have it. even then you can choose to marry a husband but you can't choose to be taxed. >> mike bloomberg the mayor of new york may be the most patriarchal figure in the world by that definition. >> my question is what does it take for women to realize that? do you think there's an issue that's -- >> i think you're assessment is exactly it. this is what i mean by young people get it. you see that's going on and you

see the lie, basically. yes, no, the fact single women -- government has replaced a husband for them, that's not freedom. that's not liberation. one would argue that's the opposite. you definitely need to read the essay in the book "threats to new freedom" because it speaks to you. i do think that the great news is people are onto it. people are seeing, again, by the example of sarah palin flaws and all. everybody, all candidates, show me a perfect candidate. he's got a really ad man. i think the media being forced to cover these people, these women, conservatives in general. you have the "washington post" having to hire as "the new york times" did somebody to follow

conservatives, as if we're an exotic species, but we're increasingly not an exotic species because we're everywhere. i think the big -- i think the big advantage of the media covering -- having to cover the whole list of women we've listed is other people see, oh, yeah, i'm not alone. if i had a dollar for every person in my life that basically said to me, i love rush limbaugh. i turned him on during the clinton years and realized i wasn't alone. other people thought like me. i think that's the phenomena. in part people are feeling like their country is being taken away from them in ways. they are also seeing, wait, politics is for me, too. i see these people who reflect my views. maybe i'll run for a local

whatever or organized group. it's a good time. it's a good time. here in the front. >> my name is marr hy hamm. the economy and family are so linked, most are -- i went to a speech by patrick fagan who used to be here about how most income in this country, most wealth is generated by middle-sized companies that are family owned that ling between stable marriage, stable family life and prosperity as being another issue. it isn't just about the economy, it's the economy as fueled by the family. >> yeah, i think that increasingly people see, maybe young people see it better than

others, that these things are linked. a dependence on government is often coming from somewhere else. it's not just an attraction to government or ideological commitment. it's come from somewhere. i like to point out that so many leaders in the pro-choice movement, they have stories that explain why there are defenders of abortion rights, for instance. you come across any issue and you see how experience, academic or personal experience, perfectly explains where somebody is. yeah, i think increasingly you find that. there's a lot of important resempl on the left and right. people making this point exactly include pat fagan, of course, jennifer morris does a lot of this about the economy and family. academic stuff that i think increasingly academics will find

useful and start working w it won't just be new things we talk about at heritage foundation conferences and things. i think that's absolutely true. again, i was sort of struck by the first time i was at a tea party, you'd see the random family resempl sign or a pro-life sign and you would see families together at the rallies, families with special needs children. you saw a cross-section of america. it was hard to miss that. it was a different scene than i had been seeing watching the tea parties, those racist awful people on msnbc and cnn. it was a different crowd in reality. any other questions? in the back standing up there.

>> i'm lindsey, advice chair of young republicans. >> there are young republicans in d.c. >> my question, you mentioned feminist discourse. the second you addressed particularly here today in the 1970s almost reversed the first wave movement. the first movement focused on our minds and getting the women's movement out into the political discourse. the second wave movement put the focus back on our bodies. and i was wondering what advice you would offer to young women today who are looking to have a strong voice in academic discourse to kind of move that back in the other direction? >> i think what mary's question was getting to is the point that they are just integral, the personal and intellectual. i don't know if this answers your question but tell me if it doesn't. i think the answer is just live

your lives and live your lives with the world values that you raised on or believe in. people will see that it will be reflected in your work. it will be reflected in who you are and how you're living and what you're doing on friday night. people notice that i don't know if it sounds really simplistic but it really kind of is that simple when vast amounts of people are doing it. when you have, for instance, people in hollywood, that have moral values and they want to have moral values, slowly i think that shows up in movies and i think you see that a little bit right now where they are not -- you have explosively christian or family oriented movies. but sometimes you see a movie and you think, wow, those are decent values. wow, that movie doesn't offend me. that's a beautiful story. that's because i think you have

more and more people in hollywood who are just trying to live their lives and be successful and make some kind of entertaining contribution to the world. so i think that's how you do it, not a grand academic answer or anything but i think that's the solution. you certainly have to vote. that's certainly part of it and be educated as you vote. >> hi. i have a question about your professional career, how you got into an editorial position. i'm sure you have both men and women working underneath you. have you felt pressured at all to kind of adopt a more masculine managerial approach, has it been tough to embrace being a woman and be in a position of authority over men

and women. >> at some point during negotiations about a micro phone, i think i gig he would and said, oops. that's to say i have not embraced a more masculine approach to my public persona. no, when i first started, i think there's a little of this still, but based on this room it's probably not the case, but i don't think this is representative. i would show up at things at 21 or whatever, because i was sort of in the conservative movement earlier than most and earlier than i probably recommend. and there would be like two women. i remember i was in new york for a period and it would be wendy and myself at sort of every conservative event. that was it. so it never bothered me. i like men, so it wasn't an

issue. i don't feel oppressed. i wasn't looking around at a room full of oppressors. again, not a grand academic -- as i said before, if you're confident, if you know what you believe in, if you're at what you're doing for the right reasons, i don't think those things bother you that much. yeah, you might be working in an office of all men. sometimes you don't really notice. sometimes you think that's cool. but it's -- i think more often than not it's just your office. it just isn't an issue. now, sometimes issues come up, of course. i'm realistic. but generally speaking, and again if you have confidence and you're not going to be pushed around or taking advantage of, it's not that much of an issue.

right here in front. >> hi, i'm rachel with the independent women's forum. >> hi. >> i was wondering if you could talk about why you haven't seen the right youth gender party, is it because it as much with the conservative males or is it because palin sort of ushered in this new movement and do you think that we'll see a corresponding decrease of the use of the gender by the left in. >> i think using race and gender is what the left does. i think one of the important points about sarah palin and the conservative woman of the moment means is take it's actually not

that new, that sarah palin didn't invent it. it's been going on. women have had these views. women have run before. at this particular moment and maybe inspired by sarah palin, although, frankly, the grief that she got and the negative attention she got would discourage me from running for office, but god bless people who do it anyway. i think the important point is that it isn't all that new phenomena. we're just at the point where people have to take notice. the left has to take notice. the left is nervous about it. the monopoly that groups like national organization for women have had on so-called women's issues, their time is up and they know it. and i just think you'll increasingly see things being shaken up in that regard. and i think it's a great thing.

and being a free market type, competition is a great thing. so just generally speaking for civics, it's a good thing even if i didn't believe it wases a great thing for america. >> my name is charlie kuhn and i'm with the u.s. chamber of commer commerce, heritage -- >> i used to be with heritage years ago, too. >> one thing that seems important to me to stress is that if the conservative movement is going to have any impact, then we have to make sure particularly in this upcoming election that we elect

conservatives. otherwise we'll have more health care, we'll have more government, we'll have more spending, and it seems to me when i look at this room full of women, it's like not just vote yourself, but get other people to vote. that's the only way that we're going to change washington, d.c. >> right. yeah. and i think your view there is reflective. 45% of the tea party leaders supposely being women and survey after survey showing that these are right of center people who are leading and involved in the tea parties. i think what you're finding at least in the beginning, i forget what they're calling it, not the first wave or early adopters i think is what they call it of the tea party movement such that it is, they were people who

hadn't voted in recent elections. i think they'll vote this year. will they vote next year? will they vote in the next presidential election? can we keep them voting in and by we, i mean people who are kefshed about the future. and i think in our candidates, too, there may be some purity testing going on right now, but there's a strain of it that's really good, a rig or. exactly who are you? we're it thought going buy into anything just because you say you're somebody and are you going to follow through. if we do have that male speaker of the house i'm looking for come january, what are the republicans going to do with the house? we know what happened last time. so that is a key. and i think this agenda that they're putting together is an important thing and it's a more important thing in terms of

follow-through. i think you're absolutely right. anybody snels one more in the back there. >> thanks. rachel also with the acn republicans. 2010 -- >> so are you going to get rid of that bag tax? that's all i want to know. there's a 5 cent tax on paper bags in d.c. >> and the d.c. republican party has reusable shopping bags available on their website. >> i don't want to look like a bag ahead anymore. >> so in 2010, it's a year where there are such substantive issues for candidates to run on in terms of policy, so i'm curious if you think moving forward to november we'll see more of our female candidates being sort of the lead and is that trend of going to the personal ever going to -- if it's not going to come back in 2010, is it ever going to come back to running on substance 1234. >> we live in a celebrity

culture. if you're a good looking male or female, things happen. i mean, scott brown. how many times did you see him on vogue -- cosmo. cosmo. obviously i'm a subscriber to both as you can tell from my great color palette. i think that's the culture we live in and that's what it is. but when you increasingly have more women in politics -- but te the same dynamic is true of men. after a while it's easy to obscure the substance in the pretty package and the message that you don't you do want to gt of people, but i think to some extent that's just always going to be there and in our media culture, you just have to try to fight through it and be smart about your messaging and bringing those points.

again, scott brown, pretty package and all. he actually talked about substance, too. and it wasn't just the people's seat. there are policy issues he talked about on the campaign trail. and frequently nikki haley or whomever is talking about those issues. they just don't necessarily get covered. but places like national review exist to help cover the actual policy issues a little bit more than "newsweek" perhaps ever will. but i do think it's sort of part of life in american politics or any politics. goodness knows we don't even do it to the extent that, say, england does. >> thank you so much. >> thank you so much, michelle. >> what a great talk. we appreciate you coming back to talk to the conservative's women's network. first we have our limited he had tigs claire booth coffee mug with her famous saying-

>> no good deed goes unpunished. that is true. >> and our limited edition tote bag. >> and from the heritage foundation, we'd like to give you a vase here with a let freedom ring bell on it. >> excellent. >> and you so often write about letting freedom ring. this will be good reminder and also remind you of the heritage foundation. >> and we often publish heritage foundation authors. so this will be there to remind me to call again. >> thank you so much for being here. there thank you. >> another great conservative network meeting. look at that rool full of ladies. doesn't it make your heart feel warm. listen, we have more people here than rsvped. we're delighted you're here. we might run out of food, though. so if you did not rsvp, maybe

could you wait until the end of the line and next time do it in advance so we can have plenty of food for all of you. anyhow, we love having you here. we're thankful you're here, we're thankful that c-span has recorded this and is playing it and probably will play it again. so be sure to have your friends and family watch. michelle, last word? >> great to be with you all. talk about not -- when becky and i came to town in the early '70s, not many conservative women around. but, boy, how things have changed. >> that's exactly right and rear happy about it. so god bless you and have a great summer. thanks for being here. >> coming up, conducted on the gulf of mexico oil spill. also, president obama campaigns for senate majority leader harry reid. after that, the national

governors' association annual summer meeting. first, a look at how states are coping during the recession and how to reduce health care expenses. >> tomorrow, on c-span, the kansas senate republican debate. some of the topics are tax policy, arizonas emigration law, and how to prosecute suspected terrorists in a tribunal. also, tomorrow, president obama speaks at a fund-raiser for robin carnahan. also, congressman roy blunt talks with businessmen in this area but the economy and jobs. that is tomorrow here on c-span. >> for a snapshot of washington and the 111th congress, a reference guide to every member

of the house and senate. order online at c-span.org /store. >> retired coast guard admiral thad allen said that bp will begin replacing the cap in the gulf of mexico so that more oil will be collected. he has given the company 24 hours to provide a timeline for replacing the containment cap on top of the well. he spoke with reporters in new orleans. >> we hope we will finish testing the leak. we have the possibility to be able to produce some time on

sunday. that will be had total capacity for the current containment cap system that is on there, between 53,000 girls a day -- between 50,000 barrels a day and 53 barrels -- and 53,000 barrels a day. there have been asked to provide as a timeline on when they will move forward. this is anticipation of a weather window to allow was potentially seven days to 10 days of bad weather. we would like to take advantage of that. -- of good weather. we would like to take advantage of that. they are in the process of doing that. we had several discussions with mr. dudley last night and continue to discuss with his staff this morning.

there is a table top scheduled in houston where they will go over the procedures. i expect we will have a response back from them by midday. any issues that need to be clarified, we will be able to proceed. we will start removing the current capping device that is on the well sometime tomorrow. that will be followed by a duration when there will be no capping device. but there will be a multi-day duration when there will be some exposure to hide from -- to hydrocarbons. will continue to move forward -- we will continue to move forward. this weather is offering a significant opportunity. as of yesterday, we had moved

to 17,780 feet. we will move to 17,830 feet, getting very close. things will get slow at this point as we go on in small sections. they will drill and with a drawl. -- and withdraw. sometime in the next week or so, we will be in a position when they can assess when they can drill into the circle area outside of the drill pipe. then they will pursue with the first opportunity to fill the oil well with mud. if there are no hydrocarbons present there, the will of cement plug that outer ring. then they will drill back in and go into the drill pipe. it will be a two-phase process.

right now, the government estimate continues to be the middle of august. mississippi and alabama had the appetency to get under way yesterday appeared we continue to make progress -- yesterday. we continue to make progress through task forces. we are organizing a vessel opportunity and task forces that are made of five straight games and five missiles. each team has 25 vessels. in the case of mississippi, their link with national guard's surveillance flights so they can be directed to where the oil is that. there are still jones is remaining in logistic support. -- they're still challenges

remaining and logistic support. we also discussed ways to handling and other products they are using out there. our concept of having deputy incident commanders for mississippi, alabama, florida, we continue to refine the process as we move forward. with that, i will take your questions this morning. >> while you wait for bp, will you have a rough estimate on the increase of the hydrocarbons that saughs could you describe for us, based on -- hydrocarbons and? could you describe for us, based on your knowledge what we have

been seeing over the past few weeks? >> you have to [unintelligible] as you know, right now, we're getting about 15,000 barrels a day through the riser pipe. when the helix-producer comes on line, that will be capable of another 20,000 barrels per day. we are going to do these in parallel. we will try to bring it on-line because it will be needed for the system anyway. there will be some time while they discover enterprise will have to move of station. -- move off station. at the same time, we hope to start some production by sunday with of the helix-producer. sunday, monday, maybe tuesday at the latest, we will be able to

replace the cap. we're hoping to mitigate the gap. maybe it will supplant the amount we have recovered to date. we would like to do this in parallel because we have the weather window. [unintelligible] -- >> [unintelligible] >> we hope to be ramping of several thousand barrels on that first day. ultimately, we want to get to 20,000. >> can you give us some details

[inaudible] >> we think everything is doable. we have to focus on a sequence of events and make sure we understand the sequence of moving the current containment device which could happen sometime tomorrow. simultaneous ops are going on. there is no conflict between what the helix-producer is doing because it is several miles away. these things are going on in parallel. we just have to understand what the sequence will be appearing we have to make sure that, collectively, we understand where we will have the cap off, where we expect the flow to be, what we can expect as far as this church to the surface, and any critical information required should be coming forth in a timely manner. >> >> [inaudible]

>> i am sorry, can you state it again? >> [inaudible] >> are we talking about the boom? are you talking about approaching the bomb? -- the boom? ok. first of all, i have put added direction that the press and the media have a fair and unfettered access to this event. we have had issues over the last several weeks where that the boom is either damaged or destroyed or actually stolen from where we have it staged. it is critically important for the defense of the marshes and the beaches. the u.s. course guard has the

authority to secure safety zones around -- the u.s. coast guard has the authority to secure safety zones around it. we did that for the purpose of not having recreational boats were not paying attention going over the top. there would be penalties if you came in and vandalize or still booming. it does not mean that the coast guard -- that the press would not have access. any assertion to the contrary is absolutely false. there is access to be allowed. we need to control it and identify the book as being media. there's no prohibition from them doing that. we have to discriminate from media that has a reason to be there and somebody who is just hangg around their when we know that we have had things stolen and vandalized. i am not sure of the misunderstanding. i have said this for days in a row. i will say it will more time.

there is not impeded or blocking of any media. but we need to know who they are, establish a press or media but so that we can understand why they are there and understand also that we need to protect the boom from vandalism and theft. there is no attempt to bar the media. wages have to identify them and make sure that the local coast -- we just have to identify them and make sure the local coast guard nose. >> [inaudible] >> right. >> [no audio[inaudible] >> in a word, yes. let me take you through the sequence. it is complicated. first of all, we have a cap over

the well head right now. there is a loose cap over the bottom because we were not able to get a clean cut when we cut to the riser pipe. we had two sets of drill pipes. we used the diamond-wire sought to cut it. did you ever have a piece of wood that you had to sign you cannot move it? we then used the big hydraulic shares that were a very imperfect cut, but it got cut and an ankle and it ended up but a jagged cut. -- in an angle and it ended up a jagged cuts. we are going to physically and bulk that stub of riser pipe after we remove -- physically unbolt that right is a pipe after we remove the cap.

at that point, we will completely remove the cover of stovall of riser pipe and it will be gone -- remove that cut off stubborn of riser pipe and it will be gone. at that point, there will be a metal strap around both of those pipes to make them closer together, so that it will be easier to put something over the top of them him at that point, they will put its cylindrical at the vice over the top -- a cylindrical device over the top of it. that peace will then become the connector on which we will put am manifold laurie valve system on top -- a manifold or a valid system on top. weird -- a manifold or a valve

system on top. >> [no audi[inaudible] >> our first goal would be to shut the well when, close all of the means of oil from escaping. we want to see how much pressure is in his cab once we close it off. to give you an idea of what we're trying to do, we estimate the pressure down in the reservoir, the pressure of the hydrocarbons, which is above 12,000 psi, or pounds per square inch. if you go to the type of the device, given the weight of all of the oil, it should be around 9000 psi. once we guess that weld shut in

and we take pressure readings, if we get 9000 psi, that tells us something. that tells us that that hold column of hydrocarbons is being supported. it is something is less, we have to explain why the pressure is less than where the hydrocarbons are going. that will be important information on how we will attempt to kill the well from the bottom, how much money will need to be injected to fill that column appeared if there -- that column. we actually improving our chances of the bottom kille. was that responsive? >> yes, very. [no audi[inaudible]

>> no. you still have to kill the well. >> [inaudible] >> if there is a problem and we have to release the pressure. we do not want to have to leave the 9000 psi pressure. there will be ways to take product off and produce it. then it gives us redundancy and increase capacity. we always planned to put a system in place to produce off of that new device to four different platforms and give us 60,000 barrels to 80,000 barrels of capacity in. -- of capacity. that is all right.

we do not know to a virtual certainty the status of the wallboard. if, for some reason, we think we need to release pressure, we start producing through the unix-producer and we go ahead with a the bottom kill -- producing through the helix- producer and we go ahead with the bottom killed. -- the bomb killed -- the bottom kill. >> i would like to remind everyone, to ask questions, please press star. your first question comes from kristin haze from britisreuters. >> first of all, you said they might be able to start on the cap tomorrow.

is that correct? >> if they will likely be in a position to start removing the current cap and start unboltinh that -- unbolting that piece of the riser pipe. >> your next question comes from cynthia and cnn. >> this is in relation to the removal of the cap. how soon can we see operations take place? is everything on standby and ready to begin? can you give us an estimate how long it will take to take off the current containment cap? >> the current containment cap can be removed quickly. there's nothing holding it in place other than the weight of the containment cap. the weaker so ago, we had the

valve closed their. we thought that we might have hydrocarbons or gas coming up through the lines. the discover and enterprise moved off station for several hours -- the discover enterprise moved off station for several hours. >> your next question comes from malice. >> thank you for taking my call. what will be hooked up to the new cap? would just be the helix- producer and in the q 4000? will the q 4000 still be taking up oil? >> here is how the transition will occur. under the current system, we are producing through three outlets of the current welfare system.

one is the riser pipe going to be discovered enterprise. there's the choke line that goes to the q 4000. if and we will have the -- and we will have the line going to the helix-producer. we will producing from the helix-producer. there will be another production platform. we will have the discover enterprise and the sister ship of the discover enterprise. there will be four platforms that will be able to take a product if we need to do that. there will be some of vertically freestanding risers. five strings will be deployed below the discover enterprise. all four of those will allow the ships to disconnect in the event

of a hurricane and leave the scene. there will be four production platforms coming from the new containment cap. >> your next question comes from cnbc. >> i am having trouble getting the precise time line. if the containment capa's taken off tomorrow, at what point would you anticipate that the new cap would be put in place and did helix-producer would be on line? would it be 24 hours? >> i think that unbolting the current riser pipe will take some time. we have to have some special tools brought in to undo those six and bolts. -- six bolts. it could take three days to four

days. at the same time, by sunday, we hope to start producing on the helix-producer, which will ultimately supplant the amount of oil that would have been recovered by the discover enterprise. it has a larger capacity. >> this will be our last question. >> the last question comes from aaron cooper at cnn. >> the have been a number of scientists who have wanted to do various types of testing on the flow rates and get a better idea of flow rates when the cat is taken off. are there any plans to do any kind of a dive test or anything of that nature? >> when we take the cap off, this sequence of operations probably will not allow for us to bring any other equipment then what is down there.

once the cap is on and we have completely sealed the wellhead, we will have empirical pressure data that will actually tell us for the first time with the flow is and it will be based on pressure of a closed system rather than on estimates that produce a range based on the high resolution video or a day metrics are the acoustic types of devices that we have been using trying to measure the density and the velocity it. once we have the new capitalize on, we should be able to get the most accurate flow rate to date and it will be based on the actual pressure in the well. thank you. >> thank you very much. everyone, have a great day. >> now the chairman of the lee with -- of the louisiana seed of production and marketing board talks about how the federal closures of fishing grounds are affecting his business.

the two things that i think are our biggest challenge are branding and we have to have more areas open and we need to have more vessels of opportunity go back and forth phishing. >> how many fishermen are out in the waters for now? >> in may 2009, we had 4500 fishermen fishing in that month. in may 2010, we had 28 fishermen fishing. that is just above the -- we had 2800 fishermen fishing. that is just about the difference in the opportunity program. there are 2800 vessels signed

up. the difference and the difference of people who were fishing is almost the same our goal is to get those fishermen back to work. >> what is the incentive is a lot of areas have been closed down for phishing? >> 20 get in bp or ken feinberg -- my goal is to get bp york can feinberg to get the fishermen a bonus based on last year's price of each fishery and a 30% bonus. normal stock a loo price and that would give them an incentive to go back to work. if it is not to the 30% they are paying, it is the 70% the year mitigating on. it the fishermen is getting 30%, then you save 70%. as far as the consumer understanding how say for our product is, they have been

meeting -- they have been meeting at the same restaurants as before. they're going to make sure that you still have the same state of quality, which have always had. if you do not so good product, you do not sell anything. these restaurants will be doubly sure that the quality of the product is there. you should be less afraid today. our testing protocols are much heavier today than they have ever been. we have health and hospital testing, while blood testing, epa testing. we are under a microscope right now. wryneck, this market is safe, even more so than before because of the different protocols we have right now -- right now, this market is safe, even more

so than before because of the different protocols we have right now. there are only precautionary closures, not because they are heavily loaded with oil. we have tar balls. but the whole gulf coast has tar balls all the time. this is not a new occurrence for us. we're very cautious about what we're doing. what i told ken feinberg was the $20 billion, if we lose our heritage and culture, that is not enough. in may of 2009, we caught 57 million pounds a product. this time, we get 12 million pounds a product. but the 12 million pounds a product is still a lot.

>> site on a local seafood distribution plants. these are fresh softshell crabs. they start in early spring and end in early fall. looking at 50 dozen softshell crabs. we have a government control of year-old plant right now. we have a lot of paperwork we have to get -- control of your own plant right now. we have a lot of paperwork we have to get through. normally, we have 30,000 pounds of fish right now. right now, we have about 10,000 pounds of fish. over here, they're processing

for the restaurateurs. >> you can see the lead. they are real friends. this is a custom black drum. these will go to the restaurant. some of these will be eaten for lunch today. there process in the morning for lunch. then, again, over here, tuna,

tellep bit, and a black drum. there is a lot of black and drummer now. red snapper -- black drum right now. red snapper. here is the processed products. there is the rainbow trout. and then we have the sausage meat. that is pretty much a quick run.

it is nice anti. everybody has freezers. -- it is nice and tight. everybody has freezers. the one thing that i do in an event like this is that it brings folks closer together. they're holding conference calls, talking to each other twice a week. as chairman of the seafood board, we will be very aggressive with our branding approaches. we will basically say, hey, we need help. we need to get this spill closed and then we can start our job in earnest. anybody that is in this country -- all they need to know is the way to help louisiana is to eat the food from louisiana. >> we are outside of the new orleans airport.

>> we have 30 two birds today who will be released. so far, it is over the 400-mark. >> now they are getting riled up.

>> watched the latest briefings, congressional hearings, and other videos like you just saw

or our live bp feet of the rules build online act c-span.org -- online at c-span.org. >> coming up, president obama campaigns for senate majority leader harry reid. nationalat, the annua governors' association annual meeting. >> the senate judiciary committee returns next week to vote on the nomination of yelena kagan -- of elena kagan. you can see candid conversations with the justices, active and retired. it is available in hard cover and as an e-book. >> c-span, are content is

available on television, radio, and on line. you can connect with us on twitter, facebook, hand youtube. -- and youtube. >> president obama campaign for senate majority leader harry reid in las vegas. hosted by the nearest the in nevada, this is about 30 minutes. .

>> thank you very much. thank you. unlv. i have to, every time i come here, have to tell everybody my wife was a cheerleader here. [cheers and applause] it's an understatement to say thank you for being here today. this is a trill for me to have the president of the university of nevada at las vegas -- [applause]

it's an understatement to say that nevada is being tested economically like never before. we have to put nevada back to work and our economy back on track. we've got a lot of fighting ahead of us. more importantly we've got a lot of fight left in us. isn't that right? [cheers and applause] and really how we react to this crisis is about renewing our future and not repeating the past. there's one way to get out of this mess -- being honest about what got us into it. let me just say a word. we've all watched very closely, at least if we read the sports page when we get up in the morning, the lebron james situation. i don't know much about those basketball teams, but i know about a team that i've served

on now for the last 18 months. it's been a good team. we've been able to accomplish a lot. in fact, one eminent pundit, scholar of what goes on in congress by the name of norm orenstein, says it's the most productive congress in the history of the country. [applause] he said that because, well, i'll run through a few of the things that this team's been able it accomplishment -- to accomplish. the most significant environmental legislation in more than a quarter century. 1,000 miles of scenic rivers and other things. we were able to pass the lilley led better legislation for equal pay. people fought, in fact ted

kennedy had for 40 years to have a program of national service. we now have one where young men and women can be involved in the environment, health care, working with theme -- people that are poor, they can get a few bucks for doing that and then when they finish the program, then we go to college and we help them. that's national service. [applause] every one of my family smokes. they all were addicted to smoking when they were teenagers. but we've changed the law. no longer are the tobacco countries going to easily addict our children because now the f.d.a. controls tobacco. credit cards, companies, were running rampant. they were unfair to the american consumer, especially middle class. no longer. we control credit card companies in the right way.

we've done a lot of other things. mortgage fraud. we have done some things that relate to what we do in times of crisis. but the most important thing we worked on, and it was really hard, but it was so necessary, health care reform. and for those who say that this team couldn't afford to do it, tell everyone that raises a question during the first 20 years of this legislation it will reduce the debt by $1.3 trillion. no longer will insurance companies be able to willy-nilly deny insurance because of preexisting

disability, because a kid has diabetes or some other problem. that's no honger the law in america. we've changed it. so how have we done this? we've done it by working together as a team. we know who is responsible for what took place in nevada, the place where people all over america looked, a place to get a job, for 20 years, a place to start a business for 20 years. a place of course if you wanted to invest in real estate it was here. but greedy wall street took that away from us. that's unfortunate. reckless wall street banks, they gambled with our money. they gambled with our jobs. and they lost and it hurt nevada more than any other place. a ruthless insurance companies denied health care. we took them on. irresponsible oil companies that resisted the clean energy economy, we're working on that.

we're going to lead in renewable energy at this great university. have we done enough? of course not. but we promised jobs in renewable energy and there are thousands of people working in nevada because we fulfilled that promise. never again will americans be required to bail out the banks that created their own problems. and one thing -- we're holding b.p. accountable and we're not apologizing for doing it. we have a lot more to do.

we're not going to wait until a long time from now. right now we're working on improving our economy. we want to make sure that every nevadan who wants to work has a job. that's what's important. we're going to make nevada a world leader in generating energy. we've made great strides in doing that and a lot is because of our work with this university. this university is going to be the leader in renewable energy in the future, especially solar energy. i think that's pretty clear i'm not sheer to berate republicans, because throughout the country and throughout the state of nevada there are republicans who are relying on our doing a better job. i'm here, though, to report thoo -- that the republicans in congress to not represent mainstream republicans in nevada.

the senate republicans have been the party of no. and that's not how republicans are throughout the country. they're not the party of no. but the party of no is in the united states senate, those republicans. we have a couple of women that wrk -- work with us, but that's about it, the two senators from maine and it's been a struggle. they're betting on our failure. we're betting we're going to win and it's a bet we're going to win. timely i want to say a word about our honored guest today. i've had the good fortune of working with him very close. he is a man of great patience. he is a man that is calm and cool and deliberate in every situation he comes up against. i've seen hem -- him in the most stressful situation -- situations and he is at his best. i want everyone to know here, barack obama is my friend, but he's a -- he's your friend.

it's a great pleasure to me -- [applause] -- the president knows that we're a state full of fighters. we're going to continue to fight for everything that we've got. we need to do that. you know, we are the battle born state. 1864, october 31. we're going to continue to fight because we're -- we were on the right side of this fight. i am so honored here at the university of nevada alt las vegas to introduce to you my friend and your friend, the president of the united states, barack obama. [cheers and applause] >> thank you, everybody. thank you. good to see you. thank you. thank you, everybody. please have a seat.

have a seat. well, thank you, harry. thanks for giving me a chance to get out of washington. it's very hot there. it's hot here, too, but there's a little more humidity there. and i just love coming to vegas. i love being here. i mentioned last night i'm not the only one who loves it because i notice for some reason air force one is more crowded when we're coming to vegas. somehow i need more staff and logistical support and a couple extra secret service guys. we've got some wonderful leaders here and i just want to acknowledge them very quickly. u.s. riment titus is here. -- representative titus is here.

nevada's secretary of state ross miller is here. dr. neal somastrik is here and they're doing a great job on behalf of nunl. -- unlv. and all of you are here. and i am thrilled to see you. but i'm especially here to be with my friend and your senator, harry reid. one of -- one of the first stories i heard about harry was that he was a boxer back in the day here in nevada. and i was mentioning -- she's laughling, like i can't believe it -- no, he was. you wouldn't know that because he's so soft-spoken. he's all "well, i'm harry

reed." but when he first told me he was a boxer he said barak, i wasn't the fastest, i wasn't the hardest hitting, but i knew how to take a punch. he knew how to take a punch. and harry reid became a pretty good boxer because he would simply outlast his opponents. he had a stronger will. and i think that tells you something about the kind of person he is, and the kind of senate majority leader he is. you should never bet against him and that's just what we need right now. that's what nevada needs right now. that's what nevada needs is somebody who's going to fight for the people of nevada and for the american people, and you know that he wasn't born

with a silver spoon in his mouth. in searchlight, nevada. so when you're going through tough times, harry reid's been there. he knows what it feels like. to be scraping and scrimping and struggling. to make ends meet. and so when his home state is having a tough time, when the country is having a tough time, he knows that he's got to be fighting on behalf of not those who are powerful but on behalf of those who need help the most. now, let me tell you, when we first took office, amidst the worst economy since the great depression, we needed harry's fighting spirit because we had lost nearly three million jobs during the last six months of 2008. the month i was sworn in,

january 2009, we lost 750,000 jobs in that month alone. the following month we lost 600,000 jobs. and these were all the consequence of a decade of misguided economic policies, a decade of stagnant wages, a decade of declining incomes. a decade of spiraling deficits. so our first mission was to break the momentum of the deepest and most vicious recession since the great depression. we had to stop the free-fall and get the economy and jobs growing again, and digging out of this mess required us taking some tough decisions, and sometimes those decisions were not popular. harry knew they weren't popular. i knew they weren't popular. but they were the right thing to do and harry was willing to lead those fights because he knew we had to change course.

that to do nothing but to continue with the policies that had gotten us into this mess in the first place would mean further disaster and to fail to act on some of the great challenges facing the country that we had been putting off for decades would mean a lesser future for our children and our grandcharne -- grandchildren. as a result of those steps that he -- we took, we're in a different place than we were a year ago. an economy that was shrinking is now growing. we've gained private sector jobs for each of the past six mohs instead of losing them. almost 600,000 new jobs. but as harry pointed out, that's not enough. i don't have to tell you that. the unemployment rate is still unsemlib -- unacceptablely high particularly in some states, like nevada. a lot of you have felt that pain personal limb or have someone in your family who was

-- has. make you've found yourself underwater on-mile-an-hour mortgage and faced the terrible prospect of losing your home. maybe you're a student at unlv and wondering if you're going to be able to find a job when you graduate or be able to pay off your student loans or to be able to start your career off on the right foot. the simple truth is it took years to dig this hole. it's going to take more time than any of us would like to climb out of it but the question is, number one, he -- are we on the right track? and the answer is yes. number two, how do we accelerate the process? how do we get the recover i to pick up more steam? how do we fill this hole faster? there's a big debate in washington right now about the role that government this -- should play in all this. as i said in the campaign and as i've repeated many times as

president, the greatest generator of jobs in america is our private sector. it's not government. it's our entrepreneurs and innovators who are willing to take a chance on a good idea. it's our businesses large and small who are making payroll, working with suppliers and distributing goods and services across the country and now across the world. the private sector, not government, is, was, and always will be the source of america's economic success. that's our strength, the dine om -- dynamism of our economy. that's why one of the first things harry did, and one of the first things we did was cut dozens be taxes. not raise them, cut them, for middle class and small business people. and we extended loan programs to put capital in the hands of

startups and we worked to reduce the cost of health care for small businesses. right now harry is fighting to pass additional tax breaks and loan authority to help small businesses grow and hire across the country. but he's also tried to look out specifically for nevada. he understandsing for example -- understanding, for example, that tourism is so enormous an aspect of our economy and so helped to move our trade promotion act that it's going to be helping to do exactly what it says, promote tourism and bring folks here to enjoy the incredible hospitality. the point is our role in government especially in difficult times like these, is to break down barriers that are standing in the way. of innovation. to unleash the engenuity --

ingenuity that springs from our people, to give an impetus to businesses to grow and expand. that's not some abstract theory. we've seen the results. we've seen what we can do to cat allies job growth in the private sector and one of the places we've seen it most it -- is in the clean energy sector. an industry that will not only produce the jobs of future but help free america from our dependence on foreign oil, clean up our environment in the process, improve our national security in the process. so let me give you an example. just yesterday i took a tour of smith electric vehicles in kansas city, missouri, on the way here. this is a company that just hired its 50th worker. it's on the way to hiring 50 more and it's aiming to produce 500 electric vehicles at that plant alone. [applause]

and these are spiffy-looking trucks. i mean they are. and they're used by fortune 500 companies for distribution, pepsi co, frito-lay. they're also used for the united states military. electric trucks with a lot be shall of -- they're very strong. great horsepower. the reason for their success is their entrepreneurial drive. but it's also partly because of a grant that we're offering companies that manufacture electric vehicles and the batteries that power them. because of these grants, we're going to be going from only having 2% of the global capacity to make advanced batteries that go in trucks and cars, run on electricity, we're going to go from 2% of advanced battery market share to 40%

just in the next five years. just in the next five years. and that will create thousands of jobs across the country. thousands of jobs across the country, not just this year, not next year, but for decades to come. so it's a powerful example of how we can generate jobs and promote robust economic growth here in nevada and all across the country by incentivizing private sector investments. that's what we're working to do with the clean energy manufacturing tax credits that we enacted last year thanks to harry's leadership. thanks to harry's leadership. [applause] some people know these tax credits by the name 48-c, which refers to their section in the tax code. but here's how these credits work. we said to clean energy companies, if you're willing to

put up 70% of the capital for a worthy project, a clean energy project, we'll put up the remaining 30%. to put it another way, for every dollar we invest, we leverage two more private sector dollars. we're betting on the ingenuity and talent of american businesses. now -- [applause] now these manufacturing tax credits are already having an extraordinary impact. a solar panel company, a solar power company called aminex received a roughy $6 million tax credit for a new facility they're building in the las vegas area, a tax credit they were able to match with roughy $12 million in private capital. that's happening right now and that's just one of over --

[applause] did -- that's just run -- one of over 180 projects that received manufacturing tax credits in over 40 states. now, the only problem we have is these credits were working so well, there aren't enough tax credits to go around. there are more worthy projects than there are tax credits. when we announced the program last year, it was such a success we received 500 applications requesting over $8 billion in tax credits, but we only had $2.3 billion to invest in other words, we had almost four times as many worthy requests as we had tax credits. now, my attitude and harry's attitude is that if an american company wants to create jobs and grow, we should be there to help them do it. so that's why i'm urging congress to invest $50 -- $5 billion more in these kinds of

clean energy tax credits, more than double the amount we made available last year. and this investment would generate nearly 40,000 jobs and $12 o'brien or more in private sector investment, which could trigger an additional 90,000 jobs. now, i'm gratified that this initiative is drawing support from members of congress from both sides of the aisle, including senators richard luger and orrin hatch. unfortunately that kind of bipartisanship has been absent on a lot of the efforts harry and i have taken up the last year and a half. we fought to keep nevada teachers and firefighters and police officers on the job and to extend unemployment and cobra so folks had health insurance while they're looking for work. we fought to stop health care

insurance companies from dropping your coverage when you get sick or placing lifetime limits on the amount of course care you can receive. we fought to eliminate wasteful subsidies to bank that were acting as unnecessary middlemen for guaranteed student loans from the government and as a consequence freed up tens of billions of dollars now going directly to students, which means more than a million students have access to financial aid that they didn't have before. and we're now on the cusp of enacting wall street reforms that will empower consumers with clear and concise information that they need to make financial decisions that are best for them and to prevent another crisis like this from other happening again and putting an end to some of the predatory ending and the sub prime loans that had all kinds of fine print and hidden fees that have been such a burden for the economy of a state like nevada and hadn't

been fair to individual consumers in the process. so that's what harry and i have fought for. frankly, at every turn we've met opposition and obstruction from a lot of leaders across the asme. -- aisle. and that's why i'm glad i've got a boxer in the senate who's not afraid to fight for what he believes in and harry and i are going to keep on fighting until wages are rising and americans are headed back to work again and we've recovered from this recession and we're actually rebuilding this economy stronger than before. that's what we're committed to doing. so nevada, i know we've been through tough times. and not all the difficult days are behind us. there are going to be some tough times to come. but i can promise you this. we are headed in the right direction. we are moving forward.

we are not going to move backwards and i'm absolutely confident that if we keep on moving forward, if we refuse to turn backwards, if we're willing to show the same kind of fighting sprirt -- spirit as harry reid has shown throughout his career, then out of this storm brighter days are going to come. thank you very much, everybody. god bless you. [applause] ♪

[captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2010]

♪ ♪

>> tomorrow, the national governors association annual summer meeting focuses on redesigning government. you will hear from alan murray,

the governor of vermont and governor joe manchin of west virginia. tomorrow on c-span, a kansas senate primary debate by jerry moran and todd teaheart. some of the topics including prosecuting suspected terrorists in military tribunals. also tomorrow, president obama speaks at a campaign fundraiser for missouri candidate robin carnahan. also republican congressman roy blunt talks about -- with local businessmen in electric anon, missouri, about the economy and jobs. c-span is now available in over 100 million homes, bringing you a direct link to public affairs, politics, history, and

nonfiction books, all as a public service created by america's cable companies. >> now, remarks from the national governors association chairman jim douglas of vermont and incoming n.g.a. chairman joe manchin of west virginia on how their states have coped during the recession. this is about half an hour. >> good morning and thank you all for coming. it gives me great pleasure to welcome you to this kickoff meeting of the national governors association and to welcome our governors and their staffs and families to the 2010 meeting of the national governors association.

we have over 1,000 reg i strants for -- registrans -- ts for this couple of days of meetings and we will have some fun as well and we are happy to welcome so many people here to pump some dollars into our local economy. we estimate that local restaurants and entertainment venues and hotels will see an injection of about $3 million over the course of the next couple days arrived -- and we're challenging our guests to beat that projection and inviting them to do so. i want to thank all of the mechanics of the n.g.a. staff, of my own staff and those that will volunteer over the next few days to help us organize and manage a successful conference. i want to thank our leader. our outgoing chair of the national governors association, governor jim douglas of vermont for his extraordinary leader

ship and also very personally for his willingness to grant honor to massachusetts to host this summer meeting. i also want to thank and welcome our incoming chair, governor joe manchin of west virginia, who is also here and who has been a great friend adds -- as well and we're looking forward to his leadership over the coming session of the national governors association. we are looking forward to a very serious series of conversations having to do with health care reform at the national level and our responsibilities to implement it over the next several years. we'll be talking also about economic issues that we are facing in different ways in each of our states and every time that i've had an opportunity to participate over the last four years in n.g.a. sessions, i have learned things and benefited from the shared wisdom and the candor of other governors and their staffs and

with -- we warmy welcome everyone here to boston and with that let me turn the podium over to the governor of vermont and the chair of the national governors association, jim douglas. >> thank you very much, governor patrick. let me begin by extending my appreciation and that of all our colleagues to you, to diane, to the host committee here, to everyone in the boston area who has been so hospitable . and we really appreciate the hard work that goes into hosting a conference of this magnitude. it looks easy when we're standing here at a podium congratulating one another, but there's an awful do the of hard work that goes into it, and, deval, i'm very grateful indeed for you -- your willingness to be our host this year. we travel round to a different

location every sirm and enjoy the ambiance and culture and history of a different place, but we also have a lot of work to do over the next couple days to talk about the issues that are important to the people of our states and to share ideas and experiences both good and bad so that we can do the best job possible for the people we represent. each association has the opportunity to focus on a particular policy issue and a year and a half ago i decided that health care reform would be the principal focus this year. that was before we knew whether the congress was going to do anything or not but it seemed to me which had an obligation to help each other come up with innovative ways to reform the heal care system, to extend coverage and contain costs in the states we serve. some states like vermont and massachusetts have been in the forefront of efforts and we look forward no -- in assisting

our colleagues in implementing the new federal law that was passed earlier this year. this is a time when our states are facing tremendous fiscal challenges. as we come out of the great recession, some states have raised taxes, depleted reserves, borrowed more, done what is necessary to get through this difficult time and with the addition of the immortal implementation of the health care reform measure we're now facing it's a very challenging time for governors across the united states -- the united states. so we're going to spend some time talking about the challenges we face as well as implementing the health care efforts that are so important. i may be a little bit biased but -- but i think the vermont blueprint for health care reform is a great way to move

forward. vermont's been deemed the healthiest state in the union for two years now. states are the laboratory of democracy, it's been famously said, the place where innovation occurs. we also unlike the federal government can't print money. we have to balance our budgets. it's with that backdrop that we come to boston this week to share our ideas and experiences with one another. again, governor patrick, i want to thank you for your willingness to be our gracious host and look forward to sharing some ideas with our colleagues over the next couple days. it's my honor to turn the gavel over to joe manchin of west virginia who will assume the responsibility in about 24 hourds. i look forward to his assuming this responsibility at the end of the meeting.

joe? >> thank you very much. good morning to all of you and -- that will be a first -- good morning to all of you and thank you for coming. to jim, let me congratulate you on the job you've done, your leadership ond the participation of the n.g.a. has been unbelievable. to deval and tiean, all of you in massachusetts sl -- should feel very fortunate to have the quality of people that are leading this state. the n.g.a. is an unusual organization. it's truly bipartisan and we truly look for best practices. it doesn't matter which side of the fence we come from, the bottom line is for the common good how to we reach best practices? if you look behind me we're going to see three democrats and three republicans.

governors -- >> four now. got one more the >> jody from connecticut. we have bon -- bobby from virginia and our friend jack from dell -- del. -- delaware. i'm so happy to have them with us. we're looking forward to a productive three days. these days are jam-packed and there's an all of lot of good things going on. i'm going to get right to the business of telling you about the meetings. during the meeting we're going to focus on issues common to all of our states. health care, national resources, job security and homeland security just to name a few. next sunday is the plenary session. two governors-only sessions will provide a forum for candid discussions. with wee -- in my experience, we meet twice a year and

they've been great meetings. the governors-only sessions are really interesting, it's where we really reach out to each other for best practices to help each other. our work is going to begin shortly. today's opening plenary session will be achieving a sustainable health care system, which jim has touched on and we're going to focus on health reform implementation. we're going to be joined bit chairman of the board of i.b.m. samuel will offer insights from his experience providing health insurance to hundreds of thousands of employees worldwide. then we'll have dr. david cutler, auto -- otto eckstein professor of applied economics in the kennedy school of government at harvard university will also join the session, adding his insights on cost containment and methods for achieving a

higher-performing health care system. this afternoon we will meet in joint session to discuss childhood obesity and nutrition. thomas j. vilsack, our former colleague from wawarks will join us to talk to -- about childhood nutrition, especially as it relates to school meals. this will conclude with a demonstration by the white house chef. sam casss -- is going to be with us, highlighting the healthy, locally grown food. this is somebody -- something common to all of us, wanting to find ways to put good quality local food in front of our children. and the session on energy includes nicholas atkins,

execute -- executive vice president for generation at american electric power and regina hopper, president and c.e.o. of america's national -- natural it was alliance. during the same time, the committee on security and homeland safety will meet to discuss how to improve our operating systems, and systems that connect our police, firefighters and medical personnel. jamie barnett, chairman of the commission's on homeland safety. and the chief of the communications division of the new york city police department will take place in a panel discussion the this session will feature bart johnson, analyst at the u.s. department of homeland security.

on sunday afternoon we'll reconvene for a plenary session on redesigning state government. as jim said, all states are facing tough fiscal situations. this session will focus on ways to restructure and streamline state government for maximum efficiency. this roundtable discussion will be moderated by alan murray, deputy managing editor online for "the wall street journal." saturday we'll wrap up way meeting of the economic development and commerce committee. this group will discuss the road to recovery. the vice president of the federal reserve bank and of boston's new england public policy center will join the meeting for that discussion. the annual meeting will conclude with a plenary session on the lisk -- risks of the national budget deficit. erskine bowles will be on hand

to share insights on reducing the federal deficit through sound monday i -- monetary policies. as you can tell we have a full schedule and quite a workload in front of all of us. we are ready to get down to doing the bives the people. we are all looking forward to sharing best practices and finding solutions to our common challenges, which is what we do best at the n.g.a., and i want to thank you all for joining us in boston, the beautiful birthplace of our country and i know deval and diane want us to leave as much as we can financially with us. he's made that direct response every time he's had a chance to get a microphone and i've listened well and i want him to know gail is out doing her part this morning. we're going to hope up -- open it up to questions but first if any of our governors would like

to say something, they're all here and tremendous assets to the organization. you can direct your questions to any of us up here. >> what about the discussion to ask congress to pass the legislation to extend the medicaid spending or any other efforts to get congress to help states with their budgets? >> we certainly look to the congress for support in a variety of different ways. february 1947 -- in february, 47 governors signed a letter extend:00 a two-quarter of the appropriation. we sent that to them again this year and as you know it's in a stalemate at this point. a number of different states have relied on those revenues for their fiscal years that began a week ago and are going to have to make some difficult choices if they don't come through with the money.

that probably will be a matter of discussion but we've taken a pretty clear position on it and we're for it. >> if you ask all 50 governors i think you'll get an answer that basically as much anybody. as we can as governors to have with any of the money that flows through the state, give us a belter chance to be able to direct it and help our people. every governor knows where their concerns are and where the needs are. if that's done you might find more of a reception than you might otherwise. governors are held responsible. they'll come to each of us and say why did this happen? we have the anybody. to make that happen. [inaudible question]

>> i talked to senator brown about both of those subjects, but i haven't -- i can't comment on any and don't have any information about a link between those two. [inaudible question] >> in a meeting the speaker and i with him that was specifically about his support if not on the merits of the sentence of s mf -- s-map at least getting it get to a vote on the merits on the cloture vote and in that same meeting he repeated what i think everybody knows to be the case, which is his support for slots at the track. but one as a condition for the other? no. that was not the nature of 9 conversation. -- of the conversation. >> could the republicans give me your comments on whether congress should pass unemployment benefits and medicaid money?

or should they try to find [inaudible] >> well, we'll probably have some discussion about this over the next couple of days as governor manchin mentioned, n.g.a. is a consensus-based, bipartisan organization so we need to find that common ground as we did when we sent that letter on f-map. i would say this as joe said, flexibility is key. for some states, f-map is important. for -- for other states it's less so and other types of federal assistance may be more beneficial. to the extent that the congress can give us flexibility in health care in particular that would be of benefit to most of the states. ma'am? [inaudible question brble]

>> we extended an inviptation to the president at our winter meeting which is in february. we always at least in my eight years have met with the president and members of his cabinet at the white house. so we have a very extensive meeting in february. we extended an invitation this time as we always do. presidents are generally not accustomed to coming to the summer meeting and i'm not expecting him. are you, deval? [laughter] sir? >> most governors are in their third year now of cutting spending, increasing taxes. what still needs to happen to break this cycle? >> well, we're coming out of what's call the great recession. the longest and deepest recession in our lifetime. we know that the economy has

ums and downs and governors and legislators have to react to that, but this is a more profound downturn than we've experienced in the past. states are in different situations. vermont i'm proud to say has a balanced budget for the fiscal year that ended a week ago. we actually reduced a couple of taxes in our session this year. we're not relying on additional f-map dollars to fund our state budget this fiscal year. but other states are in different situations and i think they have to look at the long term. engage in what one of my predecessors call full-psych -- full-cycle budgeting, to recognize the ups and downs of fiscal fortunes and save for a rainy day. but this downturn is doper than could have been anticipated and that's why you're seeing such tremendous responses in terms of budget cuts at this point.

>> thank you, i was actually just listening thinking what we're doing in connecticut. i've put together a commission that i'm hoping the next governor will be able to take some of the recommendations, for example, on unfunded pension liabilities. what are some of the recommendations? because restructuring government which is part of our discussion this weekend is really going to be part of what every gennifer is having -- going to have to look at ne -- in the next legislative session. i made recommendations to my general assembly on consolidating, i can't remember the number now, but boards and commissions. these are not high paid. most get a per diem cost. but when you have so many people that come once a month or every six months do we really need all these boards and commissions? can we in fact consolidate some and prevent duplication of work? some passed.

others -- others felt very strongly we needed to keep them in place. in the same vein we have a number of legislative commissions, small commissions that have been created over the years, well intentioned when we had money to pay for them but frankly we think those are a duplication of efforts. we're going to have to make the tough addition to eliminate some of those. i've tried. i think the next governor is going to have to do the same thing. >> jack martell from delaware. the bomb line is none of us is immune from what's going on in the national economy. that being said, i think we all recognize that we're not going to be able to tax our way to a prosperous future or cut our way to a prosperous future. in the end what that means is we've got to grow our way. we've got to really focus on improving the economic climate in each of our states.

that means being faster, more responsive, more nimble, more agile and it really meens we've got to put ourselves into the shoes of the people who create the jobs and the prosperity and focus on the things they care most about. it's not really that comp mycated. people want to be located in communities where there are good schools, reasonable taxes, a highly qualified work -- work force and reasonable costs of doing business. they want to be in places where they feel hike their tax money is well spent. i think so long as we continue to focus in every single day on that, we're likely to make progress. i know for me and i'm guessing that i speak for my colleagues as well, certainly what wakes me up in the middle of the night is the folks in delaware who want to be working and who are not. although we have an unmovie. rate lower than the national

average, we still have far too many people who are struggling and that's why we've got to wake um every day and say how do we improve the economic climate in our state? >> we just went through this in new jersey. we had an $11 billion budget deficit on a $29 billion deficit. we closed that deficit with a budget passed early, june 28, with no tax increases on the people of new jersey and with a slight tax cut and corporate business tax as a way to start bringing a down payment on our good faith for the businesses in our state to let them though we're going move back in the right direction, which in my view is smaller government and lower taxes. but we can't get through this and have long-term prosperity in my view unless we tackle the problem with public sector unions. the fact of the matter is the

public sector unions have been she'll -- she'lled at least in my state from the recession. while we have had unemployment hovering around 10%. but we have not had anything but salary increases for the public sector unions, with the teaches -- teachers insinuating they should pay nothing for their health care. in my view it's about making structural changes to the way folks are treated and i think at least in my state the people who are unemployed or working in the private sector who have had salaries cut or frozen if they still have a job are tired of paying higher property and other taxes to fund 4% and 5% raises for public sect orr employees, free health care and rich pensions. that tension is reaching a boiling point because of the recession and in my view we

have to confront that head on and i suspect other governors are having to confront that at well. but if we don't get to this core issue i think we're going to be confronting these problems for a long time, to get back to the premise of your question, if we don't confront those core issues. >> i think there is a growing sentiment among the citizens of this country that the rate of spending and the rate of growth is increasing spending that at every level of government is unsustainable. .

i think the citizens expect real bite tightening -- belt- tightening. they expect the government to do a lot of the same. governors have tried not to cut education and health care. we have a couple of commissions we have put together in virginia on job creation to expand the free markets and get more tax revenues through economic growth. at the same time, the commission

on government reform will look at every aspect of government, for consolidation, innovation, technology, privatizing that abc stores to get more revenue. these are the kinds of things governors are thinking about, looking at new ways to make government run more efficiently and reduce operating expenses, and that will be required at every level of government. >> we are joined by our colleague from tennessee. welcome. >> thank you. i apologize for being late. actually in a reasonably decent shape. we have had some significant revenue shortfalls. we are a sales tax state. we do not have an income tax, and this has been a slowdown that has been a serious issue. sales tax is very dependent

upon major ticket sales, automobiles and housing, construction materials being one of them, so we have been hit difficult there. we have not had in the way our state has been managed over the years by governors of both parties, have not had some of the issues you have heard about in other states. we have a reasonably conservative approach to things like pensions and health benefits and the like. we have not dealt entirely with it through cutting. about 20% of all departments, except for corrections where you cannot do that, and we have kept the funding for pre-k through 12 education and tact, at the cost of cuts in other areas. it has been difficult.

i have to be honest, there is a health aspect to it, too. we have been able to make a number of cuts that are necessary and really need it to be done, that would be difficult to do under other circumstances. some areas that were clearly overstaffed, for example, in the hospital systems and the like. we have used this as a way to try to also try to get done some of the business-like things that are difficult and government in good times. we had billed the in the last few years -- we had built up substantial reserves in the state and we have used them to hell add where we are. tennessee is in a strong place right now. whirley next year it will be genuinely balanced. we are using a little bit of reserves, but we will accept this year with several hobert

million dollars of real cash reserves and the bank and a genuinely balanced budget and continuing to provide all the basic services that the state is responsible for. it has been a tough few years, but i think the build up and the way in which state governments have been handled for a long time in tennessee very carefully has made it easier to deal with this issue. >> wrapping up, you have heard from the governors of all different sides of the political spectrum, and the bottom line is we are held responsible and accountable. our citizens live within their means every day. we have to make the same decisions. we have to take care of the children, make sure we are able to do the things we have been able to do, and not cut to the point where we cannot enjoy life as we know it. we are responsible for that. in west virginia, we have been

truly blessed and fortunate. our economy is healthy, our reserves are strong, we are still putting reserves and surpluses into rainy day accounts, growing at to unprecedented levels. we are prepared to weather the toughest of storms without reducing taxes. we have done it responsibly and we basically have a 10% attrition rate every year in state government. but we're not cannibalizing anything, we're just being careful and selective with how we continue. it does not disrupt anybody's life. we're not making any decisions at the average person and west virginia is not making every day. for that, we just got an increase in our bond rating, which we are so proud of. we have gone from one aa with moody's, which helps tremendously with our financing. we know we will be held

accountable every day. the citizens of our state will hold our feet to the fire, and have a right and responsibility to do that and we're up to the challenge. we need a good partner. that is what we have in washington. that partnership brings us this, and we have good things to happen in the future. i want to thank all the governors who are here. >> we will have to get back to our meeting and a moment, but i want to thank all my colleagues for being here, and thank you, governor patrick, for his gracious hospitality. i was born in the commonwealth of massachusetts, and it is good to come home to this meeting of the national governors' association, and i look forward to sharing ideas, stealing a few, and improving the lives of the people in our states. thank you all very much. [captions copyright national cable satellite corp. 2010] [captioning performed by

national captioning institute] >> now our coverage of the national governors' association annual summer meeting continues with the ceo of ibm and a harvard economics professor on ways to reduce health-care expenses. this is one hour, 10 minutes. >> we have a busy morning, so i would like to ask everyone to please be seated so we can get through art opening session on time -- are opening session on time and give adequate opportunity to our guests to make their presentations and lead the discussion about health care reform. i would ask my colleagues and everyone else to please find a seat so we can get our session

underway. governors and guests, good morning, and welcome to the 102nd annual meeting of the national governors association. we will begin with the color guard. i ask everyone to please turn off your cell phone and please rise at this time for the presentation of the colors by the 54th regiment ceremonial unit of the massachusetts army national guard. please remain standing for the pledge of allegiance, led by operation iraqi freedom veteran marine sergeant liz thompson.

>> i pledge allegiance to the flag of the united states of america, and to the republic for which it stands, one nation, under god, indivisible, with liberty and justice for all.

>> thank you to the color guard and sergeant thompson, and all those who serve our great country. [applause] please be seated, and welcome again to our annual meeting. first, i would ask for a motion to adopt the rules of procedure for our annual meeting. gov. manchin moves. governor patrick seconds. any discussion? all in favor say aye. the ayes have it, we have

adopted the rules, one of which and a governor who wishes to submit a new policy will need a three-fourths vote to submit the roles and must be submitted no later than 5:00 p.m. tomorrow. i want to appoint the members of the nominating committee for next year's executive committee and officers of the association, gov. herbert, governor martin, and others. we have a number of distinguished guests who have joined us for our annual meeting from outside of our nation. for a number of years, we've had the privilege of having representatives from the canadian parliament, and we are honored and delighted to have them with us again today. for our canadian guests, please rise. thank you very much for being with us again. [applause]

members of parliament and counselors general, we welcome them. we have delegation of arab ambassadors organized by the national u.s. arab chamber of commerce. i had the privilege of meeting some of them last evening, as you did. investor -- ambassadors. willaert arab guests please rise. thank you for being with us today. [applause] finally, for the past 11 years, we have been working with a group of governors of the 36 democratically elected chief executives in nigeria to form a forum similar to ours for the exchange of ideas, and we are delighted to have played a role in that success. they perhaps hopefully did not call that the nga, but instead

call it the nigerian governor's the forum, and it is a privilege to have them with us as well. willaert nigerian guests please rise? welcome. -- will are nigerian guests please rise? welcome. [applause] thank you all for being with us this year. i like to thank our hosts for the annual meeting. as i have noted, it is no easy task to host a meeting of this magnitude, and i want to thank on behalf of all our colleagues, governor patrick and his wife, diane, his great staff of the massachusetts coast committee in hosting the nation's governor and his associate -- in this historic city is a great privilege for all of us. please come out. [applause] >> thank you, jim, and it gives me great pleasure and honor to welcome all my colleagues, fellow governors and spouses and families and staff, all of our

guests, members of the diplomatic corps, guests from around the country and the world to this summer's nga meeting in boston. we have done a lot of good work with you and the staff to prepare for you and make sure that the program under jim and joe's leadership is rich and substantive. and that the time outside our meeting time is fun. there is a lot to like about boston and the commonwealth, and we invite you to take advantage with it consistent with your responsibilities inside during the planning sessions. i know who you are. and i invite you as i have on more than one occasion to please use and take advantage of the many restaurants, shops, and other attractions, historic and cultural, that we are famous for and rich in in the commonwealth. we're looking forward to a terrific series of conversations, both in the

plenary sessions and our private conversations, and welcome. let us know if there's anything at all that you need. thank you. [applause] >> thank you again, deval, for your willingness to host this annual meeting. it will be a real success, i am confident, and we appreciate the hospitality. we will also recognize our distinguished services award winners and are 15 and 20-year corporate fellows. i am excited to chat briefly about the challenges and opportunities we have in our nation's health-care system. in has been an active year to say the least in health policy and we all need to tackle this critical issue for states. over the past year, we have made real progress of moving to prescription reform agenda forward. our goal was to give each

governor the tools that you need to begin to implement aspects of federal health reform while continuing to pursue your own state-based delivery system reform efforts. in front of you at your place is a report we are releasing today as a capstone for my yearlong initiative. it is a report that reviews the evidence available at highlights state approaches to delivery system reforms, including care reform and payment reform. that is a thorough and comprehensive review of the options available to each state. the initiative activities would not be possible without the. support of governors on the task force. i think governor's mansion, barber, lynch, and others for their input and support and our initiative funders, without whom it would not have been a success. the new health care reform alt stands poised to make substantial increases in the number of people who have health insurance. these will increase the vital

need to contain costs and improve system performance. i think we have a great opportunity to drive system improvement efforts as federal result. federal reforms are are implemented and teller federal reform implementation in ways that focus on ways to contain costs and improve the quality of care. these reforms must build on states' experiences and coordination planning, oversight, and innovation. well we faced challenges of implementing federal reform with the current budget situation, we have the experience and insight to push forward if given the appropriate flexibility. i hope to continue to build on the information and guidance which provided of the past year. we will continue offer opportunities for affirmation sharing and advice as states move forward. to help us, we have two well- respected and knowledgeable

speakers on the topic. they have significant expertise with the effects of the health- care system on our country in the best ways to accelerate the improvement. while they come from different perspectives, my guess is you'll hear similar themes and new ideas for progress. our first like to introduce the chairman and president and ceo of ibm. ibm is the largest corporate employer in vermont. i have had the pleasure of working with the company, with sam, and members of this team. the company is a key supporter of our blueprint for health program, changed the way we provide and pay for health care in vermont. i know that this is exactly the kind of forward-looking project that sam would champion. he was appointed chairman and 2002, best known for leading one of the most ambitious transformations in the company's 99 year history. ibm has made tough calls to get out of legacy businesses that the company itself invented and

enter new ones, leading to future growth and innovation. he did this not by the flashy path, but through the far more difficult and lasting path of reinvention from within. while running a state incorporation are different endeavors, i think we can all relate. another difficult task anyone in leadership struggles with these days is being able to adapt to an ever-changing economy. four years ago, sam offered a forward-looking piece on foreign affairs identifying the emerging model of globally integrated enterprise. ibm is a premier example of this new form, becoming far more efficient and effective across its 400,000 employees and 170 markets where it does business. the results speak for themselves. ibm has delivered record performance the past six years. today we will hear about his latest vision of how our world is working, especially in the complicated area of health care. i'm delighted he is able to be

part of the program. that's all welcome sam. [applause] sam.t's all welcome >> thank you, governor, a very flattering introduction. quite humbling for me to be here, and good afternoon to everyone. it is really an honor to speak to you. we come together at an interesting moment. the states are at the epicenter. if we believe the new york times magazine cover story article, we are now the country of the broken states of america. i will talk a little about that. without question, governors and ceo must be laser focused on issues. we all understand it we face a severe fiscal crisis. everyone understands we have

confronted an historic moment. nothing more needs to be said. i think the question is, what do we do about it? that answer depends on your understanding of the present moment in time and how we got here. because if you think about as a cyclical economic slump which happens in a capital-based democratic side, you ride out the storm, hundred down, across the board, spread the pain, after a couple years to get through it. if you believe the crisis was not cyclical, caused by growth imbalances in the system, the my prescribe a reform agenda, more regulation and oversight, you pay, and benefits. but if you believe this is a turning point, not only in the state of the united states but in the context of what is happening across the world, you would take a different approach. i happen to be of the latter

perspective. i believe that what is at stake is not just the next year's budget, which is certainly very important. we all live by budgets. like you, i set them, and we have to accomplish those goals. but america's long-term global competitiveness is at stake. this time will create winners and losers. i believe the winners of the new era that lies on the other side of the present crisis will not be those who play duck and cover, those to concentrate on repairing the current system. it will be those who look to the future. i believe this because i see what is happening all over the world. especially in the emerging economies. i see it in the trajectory of global economic growth. i see it in all the market data. i see it firsthand. i just got back from africa, the middle east. before that i was in china.

i could see it throughout the world. last month, we were in shanghai. ibm convened a forum with 100 civic business leaders in 40 countries from around the world. a large concentration of our guests were from china. all the mayors of china were told to attend. our conference was also the shanghai expo. we have also held 100 conferences around the world, berlin, chancellor merkel was with us. we did it new york city, boston, across the u.s. when you look at the ambition, division, the innovation that is driving china -- the vision, the innovation that is driving china and the other emerging markets, it is breathtaking. the investments built out of the infrastructure, the modernization of society and economy, expanding like to quote grids, wireless technology, transportation and more, is

attracting people. businesses and capital flows is a formal force in the world. it is no longer a low-cost manufacturing capital of the world. if you assume it is, that is a mistake. i know this is not news to you, but i would like you to think about it from a personal standpoint. in all thoseeers nations are doing, with those leaders of the provinces, cities, states, whenever jurisdictional definition you select, what are they thinking about? this came from a conversation we had over there. what is the agenda? what choices are being made today? as i said to the mayors, what is your value proposition? why will people live in your city, invest in your city, and stay there?

that is the reality. your counterparts are making decisions with an eye towards the global marketplace. there leapfrogging legacy systems and legacy purchase. they're not just repairing what is broken, and, yes there is a lot to be done, but they are preparing for what is coming. if we want to remain competitive, we must do the same. i understand that this is easy to say, and my colleagues in the corporate sector understand the point of view. but nonetheless, putting that aside, it is harder to do than talk about, but we are in the business of doing what we're doing. the economic downturn would make any of us sound foolish or wishful about innovation moving

forward, but i also believe the opportunity is there because i see it in a lot of the initiative you are working on. the american states can use this crisis to take transformational steps, to make your states and our society smarter. i believe the governors are critical to make this happen. you have more impact on america's future standing i think than any leader in the federal government or local governments. let me tell you why. because you set where all these things come together. you operate the systems that make things work for our people were for our businesses. that is where they all intersect. in your cities and states is where it happens. you are in the position of transforming all of that because you have to govern.

if you use the term we use in business as a ceo, you have to operate the company. you cannot just give speeches about compelling visions. you have to run the place. you have to make ends meet. the plumbing has to be connected. the subtext to me of the "times" magazine story is the states is where the action is, and therefore were the greatest opportunity is to facilitate much of the change. to capture this moment, we need to look at our companies, organizations, states in new ways, and we need to see them not as isolated and cities but as part of a broader system. at ibm, we know little about systems. i'm not really talking about computer systems. i mean an economic, logistical, societal systems and how the world operates. if you look at the work we have been doing for a century for

businesses and institutions, we have designed and built most of the social security systems of the world, the central bank in systems of the world. retail, transportation, space, apollo xiii. to do so, we have learned a lot about what is required to do a system that is a functioning, brazilian, and reliable system. first, -- resilience, and reliable system. first, think about this and the context of health care, and then i will brigit. first, there must be clarity of the system's goal. put a man on the moon. second, its elements must actually be connected. third, it must be continually able to know the status of itself and its critical components. finally, the system must be able to adapt as conditions change,

often in real time. viewed against these four simple characteristics, every well functioning system books about the same. an atm system looks much like a public safety system, or the apollo mission that sent the astronauts to the moon. nonetheless, the system from a system point of view, they're very similar and analogous. it becomes more clear what other systems are in crisis. but the one we are focusing on today, the american health-care system. in truth, when it comes to health care in america, we need to put the word "system" in quotation marks. it is not a system, it is a collection of cottage industries, coincidentally running into each other from day to day. in theory, i think everyone agrees on the purpose. if we said the purpose of a health care system is to provide

patient care and high quality, affordable way for all constituents, your citizens and my employees, i think there is instantaneous agreement. we can argue about how much time spent talking about that, but i think we agree on the systems purpose. it is about the quality of care for our constituencies. simple. that is simple. patient time, trita and experience should be the design point. the design point matters because that is what you optimize around. the optimize around the design point. in the spirit of economics, we all have to pay. you will hear later i am a big pair of the health care system. but you need to envision the and the state because that is where you do the design. i will not take you through the details of what is being called the patient-centered medical home.

it is free to everyone, the goals are clear. that has the great benefit of making people healthier, costs are down, and ibm is happy to participate. at the end of the day we won a healthy work force and we want our costs go down. it it makes a lot of sense. we are happy to be participating in those kinds of partnerships. as i said, the services are free to all the patients in the system. a key dimension of the patients in health care is really wellness and prevention. i will repeat that because it seems like many days we forget. it is all about wellness and prevention. within ibm, we have also substantially reshape our health care program. we provide health care coverage for 450,000 employees and retirees and family members and the united states. we are one of the few companies that still provides retiree health care, at a cost of

nearly $1.3 billion annually. at one time, we're where defined as cadillacs. in two dozen for, we pioneered in what is incentive -- in 2004, we pioneered a wellness incentives. we focused on what you expect, exercise, eating, which lost, health care -- weight loss, health care risk, etc. as a result, ibm employees have become healthier, costs are rising slower than other costs from corporations or the public sector, and by the way, we saved about $190 million because people are healthier and use the system less. is that an alarm? there is enough security around, so i guess we are ok. just getting through the parking lot -- it is easy to get to the

giants game. of course, unless we're playing the new england patriots. nevertheless, i think the problem is the matter how much efficiency we improve the care and the system, as a company and community or as a state, it will always be limited because it is not interconnected. because a system is interconnected, end to end. in many areas of life, this connectivity is so basic we take for granted. consider banking. we take for granted we can transfer funds and make payments among institutions, retail. we take for granted that you can use the same payment and billing system and a store, website, anywhere in the world. you could use the payment system. the reason for that is the interface standards are defined and, and open and the information flows. i'm not talking about bits over

wires or in the air. it is about the prophecies and protocols that allow the information to flow freely and be shared. clearly, health care in america, you would agree, today fails the test of a well functioning system. third, many of the components of the health-care system are not instrumented. they may be instrument, but it is from the insurer to the doctor to the employer, it is impossible to know with confidence what the current status is. whatever happens to be, medical procedure or payment, you just don't know with confidence the access of the information. of course as you know, it is a colossal waste of time and money, but also introduces inconsistencies in quality and multiple opportunities for error. if you ever see somebody out of surgery, they have a magic marker.

they marked the leg. they take a big magic marker and they've market so they did not do the procedure on the wrong leg. you cannot make that up. when it comes to the fourth characteristic of a well functioning system, adaptability, i know you are asking yourselves this -- is the health care system in your state spending providers, researchers, governments, appears, communities, is it ready for what is coming? because demand will only increase. a population growth, the aging category of baby boomers, and urbanization marching on, there will be far more physical capacity needed then we have. put it all together and it is not hard to see why we find ourselves in the current crisis regarding health-care costs. it's the states hardest of all, as you know.

health-care costs are expected to explode by 70%. at 70%, in the next decade. that outpaces any gdp function one could rationally make. if you agree on the need and lack of a true health care system, how do we get there? how we get to that point in time? and a bit of a statement on why it computer guy is talking about this. ibm works with the top 10 u.s. hospitals and at the net estates, the top 20 health care insurance companies, the top 30 pharmaceutical companies, and 18 of the top 25 techs. we have similar relationships in western europe, china, singapore, and i could walk you through latin america. we have a point of view, needless to say. we have validated a lot of what is required it in the smarter health care system.

that is not about a computer chip. that is not about a device or server or robber. it is not even about the electronic medical records which everybody wants to define as nirvana. it is not enough. it is important, but not enough. it is about the data. on this planet, it is becoming more instrument and interconnected. we are capturing data in unperson added volumes. in three years, i.p. traffic is expected to be one, followed by 21 zeros, bytes. they're coming in multiple forms through rich media, not tags, cell phones, cameras, capturing it from every system or event imaginable.

from the farm to the shelf. billions of individuals used the social networking. the most important point about this is not how much data darrius. the important point is what the data can tell us. to capture that, we need to dive deeper. we need to move from big data to smarter data. that is why analytics are key. analytics are mathematical algorithms. yes, some are quite significant, detecting patterns in care, health care, fraud. it detects patterns. is the context of the data. you need to see it what it relates to, and real time, to make necessary adjustments. as ibm does this work, health care i.t. is going to do for the

doctors' minds what the x-ray did for their vision. it will change the way they look at things. where we once inferred, we now know. where we once it extrapolated, we can determine. that is the promise of a smarter health care system. instead of doing 15 random tests, we do the analysis and to two of the right tests. but talk about smarter health care. i like to do this by example. let's talk about governor rendell's pennsylvania and university of pittsburgh medical center. very innovative approach. the committee consolatory care units were " extremely well. you see it in north carolina,

university of north carolina health care analytics improves the quality of patient care, support research, and manages adaptations. records of every patient can be quickly examined for blood pressure or illness or drugs that have been administered. you can see it in massachusetts, where the university of massachusetts is building a from exchanges that will centralize patient and provider registries and connect the physician community, providing faster, safer, more comprehensive care at reduced cost. i can give you tons of examples around the world. we also see a lot of what business is doing. at ibm we're working with the major primary-care societies, the american medical to secede oncologist, a.m.a., and. fortune five other countries. it is aimed at helping doctors think of themselves as a business, continuous quality, efficiency in the office, and

demonstration projects with the american association of family practice. adopting a medical home approach took in come up 14%, visits to emergency rooms were down 40%. one of the biggest costs to the system are people randomly going to the emergency room to receive primary care. tons of examples. but it is not just health care. governors, you have to deal with all of these things. i have a couple examples where i think things are becoming smarter in the states and cities. government services. something you have to do every day, like we all do. governor schwarzenegger's california, alameda county social services using advanced analytics to help caseworkers find the meat status of any child or staff member -- to find

the immediate status of any child or staff member. they saved $11 million. transportation and washing, d.c., a transportation authority managing and operating 12,000 bus stops, 106 miles of track, 144 railcars, 1500 bosses, as clinton, and elevators, all part of the transportation system. 180,000 changed orders and repairing the system before bricks. smart transportation, singapore, getting people to use alternate transportation. at picnics everything. taxis, buses, light rail. if you know you get off light rail, you know the boss will be there within 30 seconds. by the use of analytics.

watching traffic, congestion, those things. you can predict the way to get to where you need to be in a timely manner. it is also true in public safety. governor paterson, new york, real-time crime center, where we worked with the police commissioner kelly and mayor bloomberg. this creates millions of pieces of information, and covering data relationships, leading to a 20% drop in crime. york has been classified as one of the safest large cities in the world. -- new york has been classified as one of the safest large cities in the world. alabama, using analytics to tracks to the performance and identify who is at risk in adjusting the curriculum so they can improve it and real-time and obtain the skills required for the 21st century. the list goes on and on. there are lots of ford thinking

leader seizing the new capabilities, yet building coalitions and partnerships to get this done. by the way, smarter systems can help with the nation's economic recovery. there was a recent study published by the information technology and innovations out. a foundation that found out for every 1.2 $5 billion put into smarter transportation, it creates 35,000 jobs. smart. to generate 239,000 jobs per year. broadband investment, could create and retain 500,000 jobs through economic development. yes, these are challenging times. i would begin to make the argument whether health care, we need to invest with eyes on the

future. it may be surprising for you to hear from a midsized company in this industry this is really not about technology. this stuff is readily available. it is readily available. it is about leadership. i will like to close by seeking your help in four areas. first, we must establish data standards. for health care and other systems. let's focus on health care. this is long overdue. you cannot have things connected with the information cannot flow. you cannot have the knowledge of the patient between primary-care and the clinics and hospitals if the information does not flow. it has to be standard credit standards have to be established. it is time to stop arguing. i have been in the meetings. is 99.7% accurate. we can deal with the 0.3% as an

exception. but of course people argue one and nothing gets done. we need these things to be interconnected and the information has to flow. if the system is going to work. for example, the obama administration has pledged $34 billion to its at health care providers to digitize health care records with the cold that 95% of the doctors and 75% of the hospitals have the system. these and not based on standards and they are all isolated islands, and a municipality or state, may be region, not the country, it would have wasted the money. so it is not about giving doctors iphones to call their patients, it is about dealing with the system, but accuracy of the information, the flow of the data, as the content the redundancy of the procedure out and cost is down and the insurance goes down that we are

all users and payers of. on this question of open standards, the need to take an active voice. you have to request it. it can be done. when they tell you cannot be done, remember, 99.7% of the information can be standardized. we're talking 0.3%. that is more accuracy than anything we do in business or government. second, we need to build smarter systems by design. anything is complex and dynamic as the 21st century american state, the qualities of a well functioning system, it cannot be bolted on afterwards. many are working on redesigning state government. it has to be inherent in the design. remember, the purpose, the vision, and state, has to be defined in the initial design. it is too complicated to add it later or make it up in an appropriation bill using terminology.

as you do so, you have the opportunity to deal with the key criteria associate with this common interconnected, analytics, and security. a systems based approach, leveraging analytics, could have immediate payback. there are lots of examples. it compliance -- is compliance, examination of fraud. they are convinced i have an apartment in new york because of my own system. i cannot yell about it. medicaid, on and on. byrd, is smarter state and a bus and requires far more cooperation. i'm not just talking about the familiar idea of a private health inspector, we'll get together for 15 seconds and run off based on our own self- interest. is really a shoulder to shoulder

working together to solve these problems. vermont, work together on the crime center in new york. i could give lots of examples. working together, our interests are aligned with it comes to these kinds of challenges we face. yet we all have particular responsibilities to our partners, regulators, customers, shareholders, etc. facilitating these responsibilities is different and we need to take a systemic view. that will require a change. finally where we need your help is on policy and ethics. there is increasing pressure on all of us as individual citizens or employees, expectations of sustainable living. we are living in a different world as we come together on these guidelines that are established, and are a lot of challenge from societal and ethical points of view. a great example, cameras. yes, crime goes down.

first responders have more information, get there quicker, more accuracy. lives are saved. a phenomenal benefits. but what do you do with the data? who has it? what do they do with it? do i trust them? very real questions. similar, with health care, clearly everybody understands if you could digitize like a u p c code when you by chewing gum the medical records, you could check out quickly. it could flow electronically and to get rid of the paper the system. clearly, everybody understands it. then, questions are the same. what about the privacy? what is the impact to me as an individual? will there be coverage? a lot of this is addressed in the bill, these are real societal questions that need to be addressed. security is another. we talk about building smart grids and smart rail and smart source, smart buildings. do we want the security of a web

page or smart phone? for the electoral grade or nuclear facility? you interconnect all these things. i don't think so. people are taking that kind of risk. these are all very serious issues. they require serious work from all stakeholders in society. we need to build constituencies. we have to come together, work on policy frameworks that address these very real concerns or we will not be able to progress in many areas. let me conclude with a note of optimism. i really think that the smarter state is not some grand, futuristic vision. i think it is a very pragmatic thing. nor do i believe making ibm a smarter globally integrated enterprise is all about vision. without operational execution.

it is very real. there are more being deployed than the ones i have referenced, by governments here and all of the world. the smarter state is i think very practical, and it is refreshing because it is not ideological. i understand debates will go on. there will be debates around health care, energy, security, climate change, and it is necessary in a democratic society. but wherever the debate comes out, you still need these types of systems. you still need the smarter systems to address these problems. they have to be more transparent, efficient, accessible, resilient. all those kinds of things, regardless of where the debate comes down. that has to be done. to get there, i believe us in this room and our peers across the public and private sectors

must take a leadership role. that is the good news. it is good because we don't have to wait. we are not dependent on anything. other than ourselves. we don't need the federal government. we can do this ourselves. we don't need anyone else. someone will do it, by the way. somebody will turn health care into a true system, and we're working with very smart people, individuals with a few billion dollars of backing, who will fix the problem. they got what the implications of not fixing the problem. someone will put in place the key building blocks for smarter education, to prepare our kids for the future jobs, not prepare our kids for jobs that one exist when they are in their 30's and 40's. somebody will institute's standards that will allow for across the system interaction or connectivity so that state governments can share and

municipal governments can share. somebody will do all that. someone will unleash the scale and expertise and creativity of the local american communities. it somebody will build the capacity to identify the key patterns of all this data. this will happen. someone will drive incredible progress in their region, across the country. when they do that, they will on block economic growth and profit. my suggestion, and a humble way, if you are in the middle of it. you have to solve these problems. in away, whether you want it or not, congratulations, you won the election. i think the precondition for change is there. you don't have to sell any of these points i am making to your constituencies or citizens as a need. need to be transparent and candid with the way, not the

need to carry that is where things breakdown. they get the need. i would argue, and a lot of work was done here and elsewhere around the world, when they saw the benefit, congestion went down and publish went down, and they bought in. when you are transparent and show them the result, they buy yen and support it. -- they buy in and support it. i'm confident the states will do what we must do, and that is lead. we will build a bunch of smarter states and cities, makes societal progress, and this will be a great place to continue to have a wonderful future. thank you for your time. [applause] >> thank you so much. we appreciate your perspective

and time today. we have a lot to learn from experience at ibm and other major employers to help hold down health-care costs, and we're grateful to have your thoughts at this nga meeting. i next speaker is an economist with a great deal of experience in the delivery of health care across the country. dr. david cutler is the professor of applied economics and the department of economics at harvard university. professor cutler was the senior health care adviser to senator obama's presidential campaign, served on the council of economic advisers and the national economic council during the clinton administration. professor cutler has held positions with the national academy of sciences. it is now what the bureau of economic research and a member of the institute of medicine. professor cutler is the author of of " your money or your life: strong medicine for america's health care system."

let's have a great welcome for dr. david cutler. [applause] >> thank you so much for the introduction. thank you to my own wonderful governor and everyone for having me here. that is a great privilege and honor to be here. i suspect, given the health reform debate over the past year or 18 months, you feel a bit like a friend once told me he felt, where it took all the health care economists in the world and you line them up end to end, that would be a good thing. [laughter] i will try not to -- not to play the usual health care economist and tell you what must be done, but rather give you a sense of what might be done and a few thoughts about how to make it happen in a productive way. and i will follow along some of

what sam was telling you in terms of how to make the system work and get it to drive towards better results. let me say, there are several challenges coming of health care reform. one of the things about them, they will all happen at the state level. i don't know very many things for sure, but one thing i know for sure is that if we're going to make the health care system work, work for people, individuals, work for state governments, the federal government, work for us as a country, it will be because the nation's governors make it work. there is no group that is more important in making reform work than that. there will be huge issues of regulating insurance, most states have some familiarity with that. covering people under medicaid and other exchanges, a number of states here have