it remains s because our economy has not stabilized. government is still too large and too many people are still lookinfor work. yes, the president inherited a bad economy, but his destructive policies have made it much worse. i support this resolution of disapproval of the president's debt limit increase because shouldering future generations is not following. i say if you're ready to work together on some very real solutions to real problems in 2012, so are we. we'v been ready. america deserves and demands better than the short-term drive the car off the cliff mentality our president has given us over this past year, and we in the house will continue to bring forth real leadership and real solutions to the real problems facing us for this generation and for those to come. bere i yield one of my colleagues talked about the path to prosperity, the republican budget, he said,

yes, it includes simple flies the tax code, repeal the government takeover of health care and address the number one driver of our deficit and that's medicare. we call that plan the path to prosperity. the president and democrats only alternative hase a path to despair. i yield back. the speaker pro tempore: the gentleman yields back. the gentleman from michigan. mr. levin: i yield myself seconds. the speaker pro tempore: the gentleman is recognized. mr. levin: mr. reed, mr. hoyer mentioned this, you know, on ways and means for years once the republicans came to the majority, we protested they weren't paying for anything. so this isn't a new issue. it isn't new issue. i now yield five minutes to the ranking member of the budget committee and a distinguished former member of the ways and means committee, the gentleman from maryland, mr. van hollen. the speaker pro tempore: the gentleman from maryland is recognized for five minutes. mr. van hollen: thank you, madam speaker. and i thank my colleague, mr.

levin. you know, day after day, month after month we hear members of congress, republicans and democrats alike, come to the floor of this house and say we've got to do more on jobs, we've got to make sure that we get this fragile economy moving again. unfortunately, while we say those thgs in this body, we haven't yet taken up the president's jobs initiative thate presented to this congress last september. we've taken little bits and pieces here. we've had two months now on the payroll tax cut. i hope that's good news. i hope we can get the rest of it. but the rest of it has being absolutely ignored. these people said they want to focus on job creation and get the economy moving again. and what's incredible about today is we have our republican colleagues advocang a course of action which if we took them seriously would wreak absolute

havoc in the economy. it would destroy jobs throughout the economy. that's not just me saying it. that's republican economists, indendent economists, democratic economists. if the united states for the first time in its history refused to pay its debts, if the united states for the first time in its history refused to make good on the full faith and credit of the united states, the economy would fall to pieces. millions of people will lose their jobs. you know, if we want to be taken seriously, we have to be serious about the consequences of our actions. and if we take the course of action being presend, we'd have a fiasco on our hands. look, the american people, i think, understand full well what's going on here, but i do think it's important to make clear what the debt ceiling does. you raise the debt ceiling in order to cover obligations

already made. it would be as if if wdon't lift the debt ceiling it's like we woke up one morning and said, we won't pay our mortgage. or if you went out and paid good and services with a credit card say, we are not going to pay the credit card. you know what happens? you lose your house if you do that. the credit card company will come after you. if the united states was to renege on the full faith and credit of its obligations it would be a disaster in the international economy. and yet that is apparently the course of action being advocated by our republican colleagues today. now, what makes this really political theater is people know that more responsible members of congress and certainly the president of the united states is not going to let that happen. they are not going to let that reckless outcome to happen. and that's wy in so many ways this is unfortunately just

political theater and it's one of the things, frankly, that contributes to the american people's low view of the congress, this kind of polical game pling. another thing that contributes to that is members of congress refusal to take responsibility for their own actions. last year, we had the republican budget on the house, there are major differences between the republican budgets and democratic budgets but the reality is, the republican budget, overwhelmingly voted for by our republican colleagues, would require us to lift the debt ceiling of the united states. the very debt ceiling our republican colleagues are now telling us they don't want to increase. it would require us, it would have added $7 trillion to the debt over the next 10 years. how is it that people can come down and vote for a budget that

says we're going to ask the united states to take on these additional obligations and then vote for a motion or resolution that refuses to take responsibility for those very actions? and i think that's why the american people are understandably losing much of the confidence, certainly in this house of representatives. now obviously, we have big challenges with respect to the deficit. let's get together and solve them. as my colleague, mr. hoyer, said, in order to do that we have to come together in the spirit of compromise. we have before the country a number of approaches. we've had a number of bipartisan commissions. we have simpson-bowles, rive ledge-demin chee. -- domenici. they have a framework for solving the issue.

all the frameworks say we have to make tough decisions on this making cuts but we also have to deal with the revenue side of the equation. the major obstacle to dealing with the revenue side of the equation is we have one person who say you can't close a loophole. mr. levin: i yield the gentleman an additional two minutes. the speaker pro tempore: the ntleman is recognized. >> we have our colleagues -- mr. van hollen: we have our colleagues on the other side taking a pledge to the grover nor vist organization as opposed to the pledge we take to support the united states, and under that pledge if you close a tax loophole for thpurposes of deficit reduction, you violated the pledge. if you say, you know what, gas prices are doing well, oil companies are doing just great,

we don't think they need a taxpayer subsidy, you can't get rid of -- rid of that if you're going to use that money for deficit reduction. it's a violation of the pledge. let's get serious about deficit reductio let's take a balanced approach. we have a bipartisan model, at least a framework, in simpson-bowles. but let's be serious about that. the reason this process on the floor of the house today is not serious is because everybody recognizes the united states can't afford to defat on its full faith and credit. everybody, that is, except for the folks who are apparently going to vote to say we can't raid the debt ceiling. that we are not going to take responsible for paying for obligations already due and owing. budgets already passed. what kind of message is that to our children? you've got to pay for your

debts, but you know what, you don't really have to, wink, wink, nod, nod, go ahead and buy those things on your credit card and then decide the next day you're not going to pay for them. what a terrible message that is. let's take responsibility, colleagues, for our actions. let's not play political games. and most of all, let's not follow the advice that our republican colleagues today are recommending, which would undoubtedly, if taken seriously, result in economic chaos and a huge loss of jobs. thank you, madam saker. the speaker pro tempore: the gentleman from new york. mr. reed: i'm happy to yield to the gentlelady from new york, ms. buerkle. the speaker pro tempore: the gentlelady is recognized. ms. buerkle: thank you, madam speaker and to my colleague from new york. we prepare our remarks to come down here and speak but as i listen to my colleagues across

the aisle, i have to comment on a couple of things today. first and foremost, this is not a democrat or republican issue. the debt this nation faces is not partisan, it's an american issue. we need to join together and to figure out a path forward and to hear my colleagues oy across the aisle demagoguing, we heard them demagogue our republican budget. i challenge the senate so put forth a budget and let's put a spending plan in place. this debate about the debt ceiling is critical to this country because we can't get the sete to the table to debate a budget system of we've got to somehow get their comments out and get to the american people how very important it is to stop the spending. the united states of america doesn't have a taxing problem. we have a spending problem. and until and unless we get our spending under control, we cannot move forward as a nation. it isn't about taxing the

american people anymore. they are taxed enough. we need a fair and flatter tax, income tax. we need to revise our tax code. most importantly, we need t stop the spending. this past week, our president came out, madam speaker, and he talked to us about consolidating departments within the federal governme. about decreasing gernment. making it more efficient. and t he comes to us and he asks us to increase the debt ceiling. that's talking out of both sides of your mouth, madam speaker. this president, i believe, thinks governmt has the answers and he wants to give the bureaucrats a blank check to move forward and to spend this country into oblivion. i came here as the mother of six children and the grandmotherf 12 because i believe the best thing we can do for this country is to get our spending under control. stop spending money that we don't have so that the country that we give to our kids and our

grandchildren is a better place with more opportunity and the american dream. i yield back. thank you, madam speaker. the speaker pro tempore: the gentlelady yields back. the gentleman from michigan. mr. levin: i now yield three minutes to the active gentleman, the very active gentleman, from vermont, mr. welch. the speaker pro tempore: the gentleman is recognized for three mintes. mr. welch: thankou, i thank the gentleman. the course of action that is being proposed by the republican majority is two things. one, it's reckless and irresponsible, and two, it's cynical and very political. first of all, why is it reckless and irresponsible? it is because this country has never seriously considered defaulting on its obligations, saying no to paying its bills. what greatountry would ever seriously suggest to its citizens that it will stiff its creditors with all the economic chaos that would ensue?

also, the reason that we have to raise the debt ceiling is not so we have permission to spend more money. it's to meet obligations that have been incurred. many of those obligations, incidentally, are for expenditures i opposed but you supported. the war in iraq. the extension of the bush tax cuts. medicare scriion drug part d that was never paid for. the extension of the bush tax cuts a year ago december. when it was going to add $800 billion to the 10-year deficit but even on the in order to accommodate that, you wouldn't raise the debt ceiling. so tha's the irresponsible part of this proposal. obligations incurred are obligations that must be paid. i was against the iraq war and didn't want to spend that money. had i been here, i would have voted against the bush tax cuts because i thought it was bad policy. but as member of congress,

those were congressional obligations, i believe that we and i have an obligation to stand behind them. but secondly, the reason i believe this is cynical and political, is two things. first, these budget requirements are ones that were incurred in many cases at the urgency -- at the advocacy of our republican majority. secondly this process we're now doing is one that was designed to allow people who wantedo stand up and vote no against extending the debt ceiling the opportunity to -- the opportunity to do so so they could chame they were against it even though it was designed as well to guarantee that the debt ceiling would be raised. just putting the full burden of making that haen on the president of the united states. i'm glad that he's willing to bear that responsibility, but i question whether the american people are fooled by a

congressional maneuver whereby the majority is saying that we want to say no, that we're against raising the debt ceiling, even though we guaranteed the process by which it will happen. i thank you and i yield back. the speaker pro tempore: the gentleman from new york. mr. reed: i'm pleased to yield two minns to the gentleman from tennessee, mr. desjarlais. the speaker pro tempore: the gentleman is recognized. mr. desjarlais: madam speaker, our nation is $15 trillion in debt. what does that really mean? it means that every american's share of the debt is roughly $48,000. it means that our debt is more than our nation's yearly gross domestic product. it means we must borrow 40 cents on every dollar we spend. and it means that china can purchase a new f-35 joint fighter every day with the interest we pay them. while these facts alone should

cause concern, the truly frightening patient is that there is no plan in place to prevent our debt continuing to grow. increasing the debt limit by another $1.2 trillion will mn by the end of 2012, our national debt will be in excess of $16 trillion. but worse than that, raising the debt limit sends the message to job creators that we are still not serious about making the cessary spending cuts and reforms to pay down this unsustainable debt. my constituents have given me a clear message, make the federal government live within its means. that will require us to prioritize our spending and make tough spending decisions. but there's no other choice. it is simply impossible to continue to run yearly trillion dollar deficits, yet that is exactly what some in washington want to continue to do. there's absolutely no doubt that if we don't change this course, this reckless spending bing will

ruin our economy and bankrupt our nation. that is not fair to our future generations. we have an opportunity here today to say enough is enough. we can be the congress that acts to put this great nation back on the right track. i urge my colleagues to join me in voting in favor of this disapproval resolution. i yield back. the speaker pro tempore: the gentleman yields back. the gentleman from michigan. mr. levin: i reserve. the speaker pro tempore: the gentleman from new york. mr. reed: i am pleased to yield two minutes to the gentleman from florida, mr. ross. the speaker pro tempore: the gentleman is recognized for two minutes. mr. ross: thank you, madam speaker. i thank my colleague for yielding. today i rise against the debt ceiling and i rise in favor of reality. madam speaker, my freshman colleagues and i arrived in washington, d.c. from various backgrounds. many, like me, own their own businesses. others include auto dealers, funeral home director, dentists, doctors, a pilot a football

player, a roofing contractor and others. the point is, madam speaker, people who lived an worked in the real world came in as freshmen, as my colleagues. many in that same group have been told we just don't understand how washington works. the fact is, washington doesn't work. only in washington is slowing the rate of growth and spending called a cut. only in job creators called a myth but bailouts e called a stimulus. madam speaker, the sad reality is that washiton doesn't work, but what is more saddening is that it can. our founders in their enring wisdom crafted a system of government with checks and balances. just because we have a president that is willing to spend our way into further debt does not mean that this branch of government has to go along with it. we have the ability right here, right now torque stop repeating the fiscal insanity that has led taos trillions in debts and

deficits. the fact that we're even talking about raising the debt limit without any realistic, credible plan to pay off our debts shows just how ingrained in our thinkinghis irresponsible spending has become. the fact that this president wants to spend moren g.d.p. than we match in rev thues or tax rates is a travesty to these people, our children and grandchildren. the fact that our friends across the capitol can't pass a budget for more than 1,000 days is unacceptable. the fact that we are printing money to buy our own debt makes sense only if you've got your economics degree by passing and checking $200. madam speaker, the entire government has a choice. we can make a government work for the betterment of the american people. . reed: i yield an additional minute to the gentleman from florida. the speaker pro tempore: the

gentleman is recognized. . ross: we can make washington work for the betterment of the american people. will we live in the real wld, prioritize spendg and go without? or wilwe continue to play in congressional candy land, the place where some s the sky is blue and others say the sky is red and in at the last minute a deal is declared saying it's purple and it's called progress. madam speaker, the sky is blue. at this time, i ask congress and the president to join the rest of the world world -- real world, i yield back. the speaker pro tempore: the gentleman from michigan. mr. levin: how many more speakers do you have, mr. reed? mr. reed: we have three or four. mr. levin: i reserve. the speaker pro tempore: the gentleman from new york has 23 1/2 minutes remaining and the gentman from michigan has 17 1/4. the gentleman from new york. mr. reed: madam speaker, at this time i'm ppy to yield three minutes to the gentleman from pennsylvania, mr. fitzpatrick. the speaker pro tempore: the gentleman from pennsylvania is

recognized for three minutes. mr. fitzpatrick: thank you, madam speaker. madam speaker, i am here to state the obvious, that the federal government still spends too much and it borrows too much. president obama has asked the congress to raise the debt limit by $1.2 trillion. let's put this number into perspective. there are 83 million families in the united stas. so what the president is really king is for every hardworking american family to mortgage an additional $14,450. while middle-class americans are struggling, the president has requested to pile more and more debt on top of hardworking taxpayers. americans are tired of hoping that their lawmakers will come together and find commonsense solutions to a very serious problem facing our nation. our national debt stands at over $15 trillion. our outstanding debt totals 100% of our gross domestic product. our credit rating has been downgraded. medicare will be bankrupt in nine years and social security faces insolvency. the time for hope has past.

we must act. america simply cannot wait. we got into this mess because of a decade of budget tricks, accounting gimmicks and empty promises. weid not get into this situation overnight, and we certainly cannot get out of it overnight. but the fact is we need a commonsense budget and a federal government that is efficient and effective, not one that wastes money of hardworking taxpayers. if we do nothing, american prosperity will drown in debt as we are currently on an unsustainable path of $1 trillion per year deficits. but if we make the hard decisions today, we can avoid the unacceptable consequences that we will surely face. we're all in this together, and we must find a solution together. america never backs down from a challenge. we can and we will make the right decisions today so we can restore the american dream and give our children and our grandchildren a future full of

opportunity. therefore, i support the resolution and call on the president to work with the house and the senate to put in place a budget that guarantees a more stable and secure future for america. i yield back. the speaker pro tempore: the gentleman yields back. the gentleman from michigan. mr. levin: let me reserve so i don't have to do this each time until, mr. reed, you finish and i'll close and you close. mr. reed: thank you. the speaker pro tempore: the gentleman yields. the gentleman from new york. mr. reed: i am pleased to yield three minutes to the gentleman from illinois, mr. kinzinger. the speaker pro tempore: the gentleman is recognized for three minutes. mr. kinzinger: i am a military pilot. i've been overseas and executed this nation's wars and i'll tell you one of the things i've seen firsthand is the biggest threat to our national security is or national debt. this debt ceiling increase is a symptom of overspending that has consumed washington for far

too long. president obama's request for $1.2 trillion increase in the debt limit points to the serious fiscal challenges we have found ourselves in due to decades of irresponsible and reckless spending. for decades, members of congress who continue to serve voted simply to raise the debt ceiling without ever offering a plan to stop the bleeding. it wasn't until the new house majority arrived that my freshman class when we turned the focus of the conversation from cutting -- from how much more to spend to how mu more we can cut and we turned the conversation to how to cut spending in washington, d.c. we dended that washington stop doing business as usual and include spending cuts greater than the amounts raised. in june i told president obama head on in the ekly address that under no circumstances will republicans support irresponsible legislation which increases the federal government's credit limit without any spending cuts or budgetary reforms. it's high time we cut up the

government'sredit cards and draw a hard line to stop the government from overspending which is hampering our economy's ability to grow and thrive. currently every mn, woman and child have a share of the public debt that exceeds $46,000 apie. unemoyment rates are through the roof, and the irresponsible spending habits of prior congresses and administrations have racked up trillions in national debt. the culture of washington must be reformed from the ground up. the future of our nation depends on it, and i yield back. the speaker pro tempore: the gentleman yields back the balance of his time. the gentleman from michigan continues to reserve. the gentleman from new york. mr. reed: thank you, madam speaker. at this time in time i'd yield two minutes to theentleman from nevada, mr. apple day. the speaker pro tempore: the gentleman from -- amodei. the speaker pro tempore: the gentleman from nevada is recognized for two minutes. mr. amodei: i want to thank the gentleman from the empire state. i hope this congress has had a

veryood learning experience, especially those new to this body, essentially saying that you new people need to learn how we do things here in washington. well, as the newest member of how we do things here in washington for about 122 days, i can assure you that the people who gave me this job know how we do things here and they're tired of it. they understand that washington has a fatal spending problem. they understand that the answer to every question is not more federal spending. that is the problem, more federal spending. i find it interesting to hear my colleagues from both sides of the aisle talk about, we need to pay our bills. we need to talk about what we incur as bills before we fake more money from others. this is not a problem that we got here by by ourselves in a partisan matter. it was in fact a bipartisan problem, but to treat the

solution as one that requires only one side solution or the other, get us to this point that people talking about wreaking havoc on the economy and we've had our credit downgraded because what is happening here. this is not whether we'll pay our bills in the futuror not. this is the courage of talking about the problem is spending. yes, there are loopholes and yes, there are others who may be ableo pay more, but why on earth would you ask them to pay more into this system of spending that we have created which is in no way accountable to any of those folks who are paying? so i can tell you this, for those folks that are newnd perhaps need to understand how things are done here in washington, the people who gave me this job understand very ll how things are done here in washington and they're tired of it. and you know what, they're right. i yield back.

thank you, madam speaker. i thank my colleague from the empire state. the speaker pro tempore: the gentleman yields back. the gentleman from michigan. mr. levin: mr. reed, are you ready to close? mr. reed: i'm ready to close. mr. levin: i yield myself such time as i may consume. the speaker pro tempore: the gentleman from michigan is recognized. mr. levin: and it will take me just, i think, 30 seconds. ybe a minute. you know, in a few words what the republicans in the house are doing, they're playing with fi. and that's reckless. they know that othe will put out the fire. and we'll vote, many of us, to do that today. and if we don't succeed, the senate will do so. this, i think, is worse than a charade because it really assumes that the agenda of this congress should essentially be

a kind of a play thing. a number of people who came to speak for this resolution voted in august for the resolution that brings us here today, including, i think, mr. reed. so i think what's changed is not our responsibility but the ability of thinking to have it both ways, to vote yes on the resolution knowing that as it goes to the senate this potential damage to the economy will be saved. i yield back. the speaker pro tempore: the gentleman from michigan yields back. the gentleman from new york. mr. reed: thank you, madam speaker. and i thank my colleague on the other side of the aisle, mr. levin, for engaging in this debate today.

it's so important, in my opinion, for the future of this naon, the future of the world , in the sense we need to get this issue under control once and for all. the national debt is a serious threat to our very existence as an american nation. you don't have to take my word for i. you can take the word for the former joint chief of staff, admiral mullen, when asked by the president what is the biggest threat to our national security and admiral mullen responded, not a military threat but the national debt, a fiscal threat is what jeopardizes us most in regards to our national curity. when i hear that type opinion and advice coming out of our military leaders, i'm very concerned. and it should send a message across the nation that this

debt needs to be addressed. but it doesn't necessarily just need to be addressed for the purposes of the threat it represents to our national security but also the threat that it represents to the economic recovery that we're trying to kindle in this cit across america. the national debt represents a threat to that american recovery when it comes to putting our men and women back to work because it is the cancer that is causing concern across all of small business america, all across t private sector. when they express that they don't have the confidence or certainty that washington will take care of the problems that threaten us most. so it's time that we come up with a hard plan. now, my colleagues during this debate referenced the house

budget as the plan that was adopted here that somehow by voting for this resolution we contradict ourselves because we voted for that house buet because it called for an increase in the debt ceiling. but i would remind my colleagues on the other side of the aisle, that budget only passed this house. the senate has yet to enact a budget. it will be soon 1,000 days that the senate of the united states of america has notpaed a budget. so if we don't have a bicameral, a u.s. house and a u.s. senate committed budget that we can rely upon to solve this issue, how can we only rely on the house budget to see us through? and so this resolution today sends a messageo the senate, the nation that the house of representatives will remain committed to finding a solution on this issue. and the second threat that it represents to our american

recovery and putting men and women back to work is if our interest rates in the private sector upon which they are key upon the national debt and the interest rates that are crged for our borrowing costs as a governmental entity, the interest rates in the private sector increase. you are not going to have the capital to invest in small business america or in the private sector that is going to ad us out of this economic turmoil that we find ourselves in because they won't be able to afford that capital that will build the next plant, that will build the next assembly line or build the next retail operation that will put people back to work. so the bottoline is this debt touches everything across america, and what we're doing with this resolution is saying we are going to deal with it and we are going to continue to deal with it until we get a

plan in place from the white house, from the u.s. senate and from the u.s. house that deals with it once and for all and brings certainty and confidence back to the american market. because, madam speaker, it is time to lead this nation, not hide. it is time to put our ideas in writing, debate them with the american people in an open and honest fashion, and once and for all, even be willing to sacrifice our political lives to dwhat's right for the american people. i'm committed to doing that if it means that we will save my children's generation and the generations yet to come. that's what needs to be done. and i think my colleagues on the other side of the aisle know that. we know it on our side of the aisle, and our hand is open to

work in a bipartisan fason, and i'm glad that i heard many comments today on the other side of the aisle that are committed to that commitment also. and i am confident that when we join hands, when we come together, we wl solve this issue and we will solve the economic problems we face as a nation because together, the history of our nation has shown that we can overcome any obstacle in america. any threat to our existence. once we unite, not divide, and put forth a common sense solution to our problems. with that, madam speaker, i ask all my colleagues to >> in a few moments, california governor jerry brown state of the state address and "washington journal is live at

7:00 eastern. several live political events to tell you about today including two in charleston, south carolina gop presidential candidate rep ron paul speaks at the college of charleston at 11:00 a.m. eastern. at 2:00 p.m. eastern, the southern republican leadership conference meeting in charleston coast's presidential candidate rick santorum. come off former presidential candidate herman cain and tony perkins and we are covering present obama's campaign speech tonight at the apollo theater in new york city at 9:30 eastern. [video clip] >> only those who have shown the

result to defend freedom of the west can be trusted to safeguarded in the challenging turbulence and unpredictable times that lie ahead [applause] mr. president, the decade and a center which opened up before us must see the lasting triumph of liberty, a common cause. the world needs this and britain needs us. >> nicknamed the iron lady in 1976, margaret thatcher is being portrayed on screen by meryl streep. rush the real iron lady online at the cspan video library, more than 100 appearances. >> there are some countries and the common market that would like to hand over some of their financial affairs to a european central bank. that is not our view. we do not wish to hand over

further powers from discount country to other parties. >> it is what you want, when you want. >> california governor jerry brown state of the state address which is about 20 minutes. [applause] [applause] >> thank you. fellow dignitaries and fellow citizens -- as required by the state constitution, i am reporting to you this morning on the condition of our state. before i do, i want to make one notation -- i noticed that

connie and mr huff put out their critique of my speech 24 hours ago peripatet. my speech was not finished 24 hours ago [laughter] i did not know your psychic. and you possessed the power as of precognition. and clairvoyance. after the speech, i want to check with you on some stock tips. [laughter] [applause] them especially this the state started putting it as simply as i can, california is on the mend. last year, we were looking at a structural deficit of $20 billion. it was a real mess you rose to the occasion and together, we

shrontz state government, reduced their borrowing costs, and transferred key functions to local government close to the people. the result is a problem 1/4 of what we confronted last year. [applause] my goal then is to balance budget cuts with the temporary extension of existing taxes if the voters approve. you made the reductions and some very difficult decisions but the four republican votes needed to put these on the ballot or not there so we are left with unfinished business, closing the remaining gap. again, i propose cuts and temporary taxes. neither is popular but both must be done. in a world still reeling from the collapse of the financial system, it makes no sense to spend more than we have. the financial downgrading of united states as well as of

several governments in europe should be warning enough. it said the road to hell is paved with good intentions. digging ourselves into a deep financial hole to do good is a bad idea. in this time of uncertainty, prudence and paying down debt is the best policy for my part, i am determined to press ahead with substantial budget cuts and my tax initiative. the cuts are not ones i like, the situation demands them. as for the initiative, it is fair, temporary, and half of what people were paying in 2010. it will protect our schools and guarantee in the constitution funding for the public safety programs we transferred to local government. in enough time, we can and should devise more permanent tax reform. for now, we should finish the job of bringing spending into line with revenues.

putting our fiscal house in order is good stewardship. it helps regain the trust of the people. it also builds confidence in california as a place to invest and realize one drink -- one's dreams. contrary to those critics who fantasized that california is a failed state, icy unspent potential and incredible opportunity. every decade since the 1960's, a dystopian journalists write stories that on the impending decline of our economy, our culture, and their politics. yes, it is fair to say that california is turbulent and less predictable and different. yet, look at the facts -- after the mortgage bubble burst in 2007, california lost 1 million jobless, much of a driven by the over leveraged construction industry and its financial partners in the under-regulated mortgage industry. the result was a recovery far slower than after the previous

six national recessions. we are now coming back. in 2011, california's personal income grew by almost $100,000,000,000.229995 jobs were created, a rate much higher than the nation as a whole. contrary to those people who sing of texas and beyond our was, california is still the land of dreams as well as the dream that act. thank you for sticking around for in [applause] california is a place or apple, intel, oracle, qualcomm, twitter and countless other korean companies begin reporting is home to more nobel laureates and venture capitalists than all the other states. california received 48% of venture-capital investments and

in the first three months of last year, it rose higher, to 52%. that is more than four times greater than the next recipient, massachusetts. californians were awarded almost as many from the next state which was new york. california's problems but rumors of its demise are greatly exaggerated. [applause] 2012 presents plenty of opportunity and the work together, we can stimulate jobs, build renewable energy, reduce pollution in greenhouse gases, launch the nation's only high-speed rail system, reach agreement on a plan to fix the delta, improve our schools, reform our pensions, and make sure prison realignment is making to protect public safety and reduce retail -- recidivism. last year, i appointed a top adviser with an impressive

record in the private sector and charged him with finding out what does not work for businesses in the state and how to fix it. what he heard consistently was that business needed an effective champion to navigate the state's plethora of complex laws and regulations which can discourage investment and job creation. you enacted a law to restructure our office of business development and place it in the governor's office. under the name go biz we now have a point of contact at the highest level for businesses large and small. the go biz office is staffed with people who know what his coat -- what it is like to be in business and i stand ready to intervene and give real help to get businesses open and projects off the ground. already california is leading the nation in creating jobs in renewable energy and the design and construction of more efficient buildings and new technologies. our state keeps demanding more

efficient structures, cars, machines, and electric devices. we do that because we understand that fossil fuels, particularly foreign oil, creates rising costs to our economy and our health. it is true that the rural energy sector is small in the overall economy but it pays good wages and will only grow bigger as oil prices increase and the effects of climate change become more obvious and expensive. i sent sagal of 20,000 megawatts of renewable energy by 2020. once lester of our electricity comes from renewable sources by that date. this morning, i can tell you we are on track to meet that goal and substantially exceed it. in the last two years alone, california permitted over 16,000 megawatts of solar, wind, and geothermal energy projects. [applause]

in the beginning of the computer industry, jobs work in the hundreds of thousands and now they are in the millions. california is positioned perfectly to reap the economic benefits that will inevitably flow. california also leads the nation in cleaning up the air, encouraging electric vehicles and reducing pollution and greenhouse gases. our vehicle emission standards which have always set the pace now been adopted by the federal government for the rest of the country. california stepped out and crafted a bold plan to deal of climate change and foreign oil dependency, a plan that will require less carbon in our fields, more efficient technologies across a broad swath of businesses and a carefully designed cap and trade system that uses market incentives instead of prescriptive mandates. as a result, california is

attracting billions of dollars in clean technology capital investment. in 2011, almost 40% of such investments were made in california making our state not only the leader in the nation but in the entire world. [applause] my commitment is to continue these innovative programs and build on them in the coming year in every way i can. just as bold is our plan to build high-speed rail system connecting the northern and southern part of our state. this is not a new idea. as governor the last time, i signed legislation to study the concept. 30 years later, within weeks of a revised business plan, that will enable us to begin initial construction before the year is out. president obama strongly supports the project and has provided the majority of funds for the first phase.

it is now your decision to evaluate the plan can decide what action to take. without hesitation, i urge your approval. [applause] if you believe that california will continue to grow as i do and that millions more people will be living in our state, this is a wise investment building new runways, expanding our airports and highways is the only alternative that is not cheaper and will face even more political opposition. those who believe that california is in decline will naturally shrink back from such a strenuous undertaking. i understand that feeling but i don't share it. i know the state and the spirit of the people who chose to live here. california is still the golden mountain that chinese emigrants in 1848 can across to the city to find. the wealth is different, derived

as it is not from mining the sierras but from the creative imagination of those who invented and built and generate the ideas that drive our economy forward. critics of the high-speed rail project abound as they often do when something of this magnitude is proposed. during the 1930's, the central valley water project was called a fantastic dream that will not work. the master plan for the interstate highway system in 1939 was derided as new deal jitterbug economics. [laughter] in 1966, then mayor johnson of berkeley, called bart a billion dollar potential fiasco. similarly, the panama canal was four years thought to be impractical. benjamin disraeli himself said of the suez canal, totally impossible. well, the critics were wrong

then and they are wrong now. [applause] we will build the first phase so that it is worth the two billion dollars of state money we invest. last week the secretary of the interior met here in sacramento with those in my administration who are working to complete the delta conservation plan. together we agreed that by this summer, which have the basic elements of the project we need to build. this is something my father worked on and i worked on as well, decades ago. we know more now and are committed to the dual goals of restorative delta ecosystem and ensuring a reliable water supply. [applause]

this is an enormous project. it will insure water for 25 million californians and for millions of acres of farmland as well as 100,000 acres of new habitat for spawning fish and other wildlife. to get it done will require time, political will, and countless permits from state and federal agencies. i invite your collaboration and constructive engagement. next, i want to say something about our schools. they consume more tax dollars than any other government activity. and rightly so as they had a profound affect on our future. since everyone goes to school, everyone thinks they know something about education. in a sense, they do. that does not stop experts and academics and foundation consultants from offering their ideas usually labeled reform and

regularly changing at 10-year intervals on how to get kids learning more and better. it is salutary and even at the fighting that so much interest is shown and the next generation. nevertheless, in a state with 6 million students, 300,000 teachers, a deep economic divisions, and 100 different languages, some humility is called for. [laughter] [applause] in that spirit, i offer these thoughts -- first, responsibility must be clearly delineated between the various levels of power that had a stake in our education system. what needs to be avoided is concentrating more and more decision making at the federal or state level. for better or worse, we depend on elected school boards and the

principals and teachers they hire. to me, we should set broad goals and have a good accountability system leaving the real work to those closest to the students. [applause] yes, we should demand continuous improvement in meeting our state's standards but we should not impose excess of or detailed mandate. my budget proposes to replace categorical programs with a new waited student program that provides a basic law allows fund and with additional money for disadvantaged students and those who struggle to learn english. this will give more authority to local school districts to fashion the kind of programs they see their students' needs. it will also create transparency, reduce bureaucracy, and simplify complex funding streams. given the cutbacks to education in recent years, it is imperative that california devote more tax dollars to this

most basic of public services. [applause] if we are successful in passing the temporary tax is that i proposed and the economy continues to expand, schools will be in a much stronger position. no system works without accountability. in california, we have detailed state standards and lots of tests. unfortunately, the resulting data is not provided until after the school is over. even today as i speak to you, the ranking of schools based on tests taken in april and may of 2011 is not available. i believe it is time to reduce the number of tests and get results that teachers, principals, and superintendents in weeks, not months. [applause] with timely data, principals and

superintendents can better mentor and guide teachers as well as make sound evaluations of their performance. i believe we also need a qualitative system of assessments such as a site visitation program where each classroom is visited, observe, and evaluated. i will work for the state board of education to develop this proposal verl. education is divided by strong emotions. my role is not to choose sides but to listen and engage and believe. i will do that. i have already spoke about reform and tradition but i will not accept complacency. my hunch is that principals and teachers know the most but i will take good ideas from wherever they come. as for pensions, i put forth my 12-point proposal, examine it, approve it, but please take up

the issue and do something real. [applause] i am committed to pension reform because i believe there is a real problem. three times as many people as are retiring as are entering the work force. this arithmetic does not add up. in addition, benefits, but contributions, and the age of retirement all have to balance. i don't believe they do today. start tomorrow and work for 30 years, you could live to 80, 90, 110 -- how much is that? how many people are retired and how many people are working and how many people are coming along and how does it work out? if anybody tells me you feel confident that 40 or 50 years from now things will be paid for are not looking at the numbers and comparable investments. as for prison alignment, we're just at the beginning grid the cooperation of sheriffs, police chiefs, a provision of this,

district attorneys, and local officials have been remarkable. we have much to do to protect public safety and reduce recidivism and together we will get it done. it is one thing to pass a law but it is quite another to implement and make it work. as i see it, that is my job as governor and as chief executive. make the operations of government work efficiently, honestly, in the people's interests. with your help, that is what we will do in 2012 and proved once again that the decline of california is wrong. we are on the move, we're on the mend, let's get it done, thank you. [applause] [captioning performed by national captioning institute]

[captions copyright national cable satellite corp. 2012] >> in a few moments, today's headlines and your calls law "washington journal of on." our road to the white house coverage leading to the south carolina primary continues with gop presidential candidate rep ron paul at the college of charleston at 11:00 a.m. eastern. at 2:00 p.m. eastern, the southern republican leadership conference meeting in charleston posts presidential candidate rick santorum, former presidential candidate herman cain, and the head of the family research council, tony perkins. we are covering president obama's campaign speech tonight at the apollo theater in new york city. that is at 9:30 p.m. eastern. in about 45 minutes, we'll talk about the south carolina primary and the congressional agenda with republican congressman joe wilson represents the southern part of that state. at 8:30 eastern, we will focus