in order to be consistent with title one of the budget control act, our fy-'13 base budget request had to be roughly $45 billion less than we had anticipated under last year's budget plan. over the next five years, defense spending will be $259 billion less than planned for in the fy-'12 budget, a difference of nearly 9%. and over ten years starting in fy '12, it will be reduced by over $487 billion. to meet these new budget targets, and our national security responsibilities, we had to fundamentally reshape our defense spending priorities based on a new strategy. the department of defense has stepped up to the plate. we have met our responsibilities under the budget control act. but with these record deficits, no budget, no budget can be balanced on the back of defense spending alone. based on my own budget experience, i strongly believe that all areas of the federal budget must be put on the table, not just discretionary alone but mandatory spending and, yes, revenues. that is the responsible way to reduce deficits and the responsible way to avoid the sequester provisions contained i

budget. a different approach. and actually be able to get down to numbers, because we've had secret meetings in committees and discussions, outlines and frameworks, but when it's late out in real numbers, like congressman ron has done, like senator toomey has done, people look at it and express their view. they either like it or don't like it, but it has reality to it. and the kind of power to it that just talk does not have. so i have to say, i'm disappointed that we're not being able to have the kind of markup that ought to be basic to the statute other duty of this committee to fulfill its responsibility to produce a budget. a couple of things i would say. there has been, and i just want to say this, because i believe it's important, a systematic plan for several years on behalf of senator reid, i guess, and the democratic leadership to avoid votes on budgets. to avoid being accountable for having a real plan for the future. for example, the budget not brought up, and last year, our democr

the money for the budget. they're already doing the work. so for us to believe that if we sit here the next several weeks or months and debate a budget and then assume that the appropriators will change all the actions they're doing i think is misleading. the second part is the budget, which is so -- process is somewhat unusual to me. as a former mayor, a mayor presents a budget. the assembly votes on it. the mayor has to sign it and agree to it. that's not what happens here. so the people who watch who assume that we do all this budget work and then the president signs it and agrees to it is mistaken. that's not how it happens. it's appropriation bills that he signs and agrees to. so the one thing he did sign and agree to, and i know people have different views that we've heard a little bit about it here on the budget control act, i'll tell you, the budget control act is in place. we had a chance to comment on it. we had a chance to debate it. all of the senate members. we did that. some voted for it. some vo

president obama's, the ron budget, the toomey budget, voted against all the budgets. not on record favoring a single thing that would change the debt course of america. and so i hoped that we would be able to go forward today with a plan that would offer us an opportunity to participate in the statutorily required process, and i intended to, again, bring up president obama's budget. maybe congressman ron's budget. senator toomey has prepared to introduce and explain and advocate for his historic budget that would change the debt course of america, and that will all be not done today. so i think senator conrad deserves credit for wanting to do this. he deeply believed that there is a responsibility both in law and in morality that the majority party in the senate should lay out its plan for the future, for good or ill, and explain it to the american people, and fight for it. and if they're not willing to do that, i don't think they are willing to do the things necessary to lead our country in the decades to come. so that's just where we are. i have a great deal of resp

the budget law says the president must propose a budget, then congress must dispose of its budget by april 15th. the president true to law has followed that by proposing a budget. we take issue with his budget. it doesn't address the drivers of our debt. it doesn't propose to ever, ever balance the budget let alone get debt under control. there was a vote on his budgets last night and it got 414-0 and the vote was simply taking the cbo score of the president's budget, putting it into resolution text and having a vote on it. it was an attempt to try and show that there's not a lot of support for putting a budget that doesn't attempt to fix the problem. we had a few different budget substitutes yesterday. we had the black caucus, the progressive caucus, the simpson-bowles budget. this morning we're going to have the study committee budget and the democratic substitute. then the final passage of our budget. i want to simply say chris van holland should get credit for proposing a budget. it's always tempting in the minority not to propose a budget and just to criticize. i think it's impo

the budget control act is not a budget. president obama clearly agreed when he proposed his budget. house republicans and democrats alike agreed when they voted on seven budget resolutions authored by both republicans and democrats. the democratic leadership and the senate stands alone in their belief that the budget control act was a budget resolution. is it because they have no idea on how to balance a budget? contain out-of-control spending? grow the economy? create jobs? well, i don't know. i'm also confounded by what i've read in the press, that this markup will end today with no consideration of the amendments and without a vote on the chairman's budget resolution. a markup entails debate, amending and actually marking up a resolution. but today is nothing more than speeches with a suggestion that maybe we'll meet again sometime near the end of the year to offer amendments and vote on a resolution. the chairman was quoted yesterday as saying, "this is the wrong time to vote in committee. this is the wrong time to vote on the floor. i don't think that we will be prepared to vot

it's not my budget. it's our budget. i will spend every day and hour i can to find the best solutions that i can. i have some really keen brains here. they are very smart people. they are very dedicated people. they are going to work really hard with me as to how to bring the best, highest level of services, culturally competent services, services to every neighborhood, and still try to balance the budget with all the things you been reading about and hearing about the enough speeches. tonight is about listening to you. thank you very much. let's get the road show started. [applause] supervisor campos: thank you, mr. mayor. we assume that by your presence here, if there's any surplus, district 8 and district 9 will be the priorities, i imagine. [laughter] let me introduce the department heads that are here. before we do that, i want to acknowledge supervisor carmen chu, chair of the budget committee. i want to thank her for her presence and for also having a truly transparent budget process. thank you, supervisor chu. [a

they can pass a budget. it's oftentimes misrepresented that the republicans can block a vote on the budget on the floor of the senate. we can't. the democrats have enough votes to pass a budget. they should get their act together and they should fulfill the responsibility and pass a budget. thank you. >> we have to go to our -- [ inaudible ]. >>> remarks from the senate budget committee members, including ranking member jeff sessions. other committee members holding a briefing ahead of the budget committee's meeting on the budget proposal from share senator kent conrad knop votes expected today during that meeting as this is not an official markup, as you heard. senators will simply offer opening statements. that hearing is about to get underway. we are now in the hearing room. live coverage here on c-span3. >> -- different parties are available. and members will be recognized for statements from five to seven minutes. amendments will not be in order today. the mark will not be before us as is the tradition

on the budget. to suggest we have not put in place spending limits or spending restraint, i think, is misleading to people who are listening. i believe it is very clear in the budget control act ha we passed -- that we passed a law that put in place spending limits not only for two years, but quite extraordinarily spending caps for ten years. i've been here 26 years. i have never seen a budget resolution put in place spending caps for more than three years. the budget control act put in place spending caps for ten years. in addition, the budget control act created a special committee with the obligation to come up with a plan for reforming social security, medicare and the tax system and told them if you are able to agree, you will be able to bring that proposal to the floor of the senate and not face a filibuster. be able to pass reforms to those programs on a simple majority vote. and it further said if you can't agree, there will have to be an additional $1.3 -- $1.2 trillion of additional cutses

each year we incorporate tribal budget priorities into our budget requests. we're also making progress on reforming the indian health service with an emphasis on improving the way we do business and how we lead and manage our staff, setting a strong tone at the top that we must change and improve, improving our financial controls, finding more efficient and effective ways to conduct our business matters and performance management and accountability have been very important to our progress. for example, ihs was able to demonstrate its best performance ever as a part of the hhs cfo audit in 2011. our hiring times have improved and we're addressing pay disparities to help with recruitment and retention. the contract health services program, or how we pay for referred care, has demonstrated accomplishments in ihs reform through improved business practices and improving access to care. the contract health service budget of referred care has increased 46% since 2008. and as a result, some chs programs are able to pay for more than priority one or life and limb refe

i made the proposal to balance the budget, i did not propose a balanced budget, with extra encase the board did not want to go with sunday parking. i made assumptions based on what i thought -- but the group of revenue and expenditure items were. this is the decision of the board. if the board wants to change this -- we can go back on the 17th and call a special meeting and come back before the end of the month. so if the board wants to make adjustments this is within your ability. >> can i ask the chair -- do we know if we delay this or continue this until another special meeting, would it give enough time for the supervisors to get what they need to hear from us? because they are working on a time line. >> exactly. i have as a proposal that we -- we bring 14 -- we vote on 14 but we also ask that this item be brought back to was to extend this to free to all use. and if we pass 14 the way that this is written, and also have this come back to us, next meeting, to extend it to free for all youth -- i think in that case we would continue the budget. >> and you can also -- you can also c

the rise in budget in 20. -- the rise in budget -- the ryan budget in 20. you say years will not get 218 votes. are republicans putting their credibility on the line with voters? things are going slower in cutting the budget by supporting the ryan budget. does that put your credibility on the line? >> the conference budget is 1000 times better than the president's. his keeps adding to the debt and deficit. paul has put us on a path that begins to pay that down over time and get us to balance. we think the american people expect us to do what they have to do. that is get to balance in a reasonable time. quit spending more than you take in, particularly when you have a $16 trillion debt. that is why we have offered our plan. it fits with what most american families and business owners view as common sense. >> would they expect members of the republican senate committee would hold together and not support the ryan plan to push for your own budget? >> i think you will see a lot of republicans back our budget. the president's budget was offered as an alternative

there is also a series of budget hearing before the budget and finance committee. in order to have an effective meeting, we want to lay out a few ground rules to help guide the conversation. as a teacher, i understand that. you have to stay on subject. all ideas and perspectives will be heard. all of us will be respectful of one another. we are going to speak when that time. we have translation equipment. what do they do? it it -- is it over there in the back? ok, i see them. first, so you know where we are, we will have a budget overview by cindy. >> good evening, everyone. thanks for having us. i will be giving just a quick buck -- budget overview of where we are at in our budget plan for the year. these are very high tech, as you can see. we have in the city of san francisco a $6.8 billion budget. that was our adopted budget last year. to put that in context, about 52% of our budget is what we call enterprise funds. there is our funds were there is a dedicated revenue source that can use -- be used for certain expenses. for example, your water bill can only be u

i want to gut that there are risks associated with any budget, more so with a two-year budget. i just wanted to point out the underlying this budget, there are assumptions. we are in negotiations, because the budget cycle goes ahead of the labor negotiations, we had to put something there. we could have left it alone, but we think the responsible position for us to take any reasonable one for us to enter into with our labor partners is to assume some level of contribution from them. it is ultimately positive in that regard, but predicting the economy can be dangerous and business. local, state, national events can change that. we get about a quarter of the revenue -- significant changes to the economy will directly impact the us. fuel costs, everybody that drives their own vehicle does that it has been very high. we have a portion of the fleet that runs from low-cost power, we run a good chunk of that on by a diesel. that is something difficult to predict where it is going to go. writer shift is difficult to project and the vessels save discussion on the fast pass for that item

to get a budget.that sort of how the process works? >> normally a budget by the president, budget adopted by the house, adopted by the senate, but you know basically the budget process is expression of the party who drafted that budget's value and blueprint for how you are going to structure the nation's fiscal house. basically that's what it comes down to. >> greta: okay. so the house budget is republican. those are different values than your own. but that without the -- >> quite different. >> greta: quite different. i understand that. but without the senate having a budget it's sort of stops everything and the senate is currently run by, majority by the democratic party. they have 54 votes if you consider the 51 democrats, two independents who caucus with the democrats and of course they get the vice president. until the democrats -- until the senate has its budget it doesn't enable you to sit down and work your values out and talk and work out a solution for the rest of the country. that is the pro

it is not a serious budget but that is really what a budget is.he budget control act is 24 numbers and simply not adequate at all. >> senator conrad you nonetheless are preparing now to try to bring a budget to the floor, right? >> it is very clear the budget control act does provide the spending limits. >> we got that. >> i have heard over and over there has been no budget for three years. the fact is there is. the fact is what we don't have is a longer term plan. what we need, i believe is at least a ten year plan, that is why i'm going to mark up the first week that we are back in session and what we need to do is work on a long-term plan that gives deficits and debt under control and has a way of bringing us together because if we don't get together we can't accomplish anything. >> do you have any assurance that your majority leader senator reid would bring it to the floor? >> that becomes a matter of timing. i think senator reid has made the judgment probably quite correctly that there is very little chance we will get the two sides together

. >> the operating budget -- certifying that the budget is making progress from meeting the performance standards, approving various changes and the rates and charges. [unintelligible] >> we got it. >> exactly, i'll move on. approving labor affairs for new year's eve. authorizing the director to implement short-term experimental affairs about various contracts regarding performance of these services by private contractors. authorizing the directive to make any necessary technical and clerical directions. to allocate additional revenues, the director will return to the board. directors, there are a few corrections in your resolution and in the transportation code that we want to go over right now. one is to note to the one of the whereas clauses, the staff recommendation reflected in the result clause is a time of 12:00 to 6:00. >> thank you for another adjustment in the water hole. another are a lot of people here that want to speak to the budget. i want to not keep people any longer than necessary. the reason why we included the service standards. i think it is important, considering t

the budget control act included a budget deeming resolution so that the budget committee can go forwardits annual spending bills. even though we already have a budget as a matter of law for next year, i agree with our chairman that this committee can be helpful in focusing attention on a longer-term, comprehensive deficit-reduction plan karen the budget control act cut nearly $1 trillion. but much more needs to be done. i commend the chairman on a much longer-term budget proposal. by the end of the year, these decisions will be forced upon us. if we begin meaningful bipartisan conversations now, we have the chance in this committee to play a significant role in those discussions. before considering any deficit- reduction plan, i want to remember that when president clinton left office in 2001, he left a balanced budget and a country poised to pay down by 2009 our entire national debt held by the public. those surpluses were squandered, largely through deficits funding tax cuts to the highest earning americans. any serious deficit reduction plan must include new revenue and i am pleased

>> the budget is on an overall basis for their contract services budget. within that they have the freedom to negotiate individual contacts -- contracts. john karr you noticed on the slide, the second bullet. 2007-2008 was last time there was a cost of doing business increase of 3.45%. that was broken down between the board of supervisors and the mayor's office. is that correct? >> i do not remember. supervisor avalos: what was the last time there was a doing cost of business increase? >> prior to 2007's 2008? i do not have that information. we can get back to you later. supervisor avalos: was there a trend the city was doing with nonprofits in terms of the contract thing? >> we will get that for you. supervisor chu: a question for you. the slide show that the departments did not report doing cost of business increases. i wanted to know how is it that your report takes into account with when there are contractual changes? so if departments have asked for a different level of service, a different type of service or expanded service within an organization, h

coming to the second annual budget town hall. my name is david chiu, and i am honored to represent the district 3, which is the 10 any neighborhoods. i want to welcome all of you to this town hall. i want to thank all of you for your community leadership and let you know that you're taking part in a very, incredibly important part of our city governance. i thing many of you know that the budget is the most important set of decisions that we make every single year. the budget reflects our priorities as a city and reflects our values. and many of you probably also know that in recent years, every year since i have been in office, we have had a budget deficit. so we have to make some very, very difficult choices. i want to thank not only not of you who have -- not only all of you who have come here today, but those from city government, in particular are city officials. this is the second annual budget town hall, something we started in mayor lee's first year. in the first meeting i had with mayor lee after he was sworn in as our in

budget committee secretary panetta said he is counting on congress to enact further budget settings in order to avoid automatic a defense spending cuts in 2013. this is 2:45. >> the hear willing be in order. the committee will come to order, excuse me. first off, let me just start by welcoming our secretary of defense, former budget committee chairman, secretary panetta. as you see, we're used to your face here in the budget committee room. and i don't know when it is the last time, secretary, you been in this room. it's a real pleasure. you have respect on both sides of the aisle here. we want to tell you how appreciative we are of your time. we haven't had a sec def here in a while. and this is a topic that is so much more budget relevant these days than ever before. we're so appreciative of you being here. i want to welcome everybody to today's hearing to examine the president's budget request for the department of defense and to explore how the federal government can meet its highest priority, providing for the common defense and strengthening our national security. as i mentioned,

ron budget. voted against the president's budget, they voted against the toomey budget, voted against the paul budget. they voted against every single one, and there has not been on record yet for one. i thought at least in the committee today we might have the democratic committee members at least stand up and cast a vote for or against this budget, but they're not going to do so. so once again, there will be an abdication of the responsibility of the majority part in my view because you have the power to pass a budget with only 50 votes with the vice president's support. parenthetically, i would note that the budget that you've offered and the plan you've offered i don't think is consistent totally with the -- at least the simpson/bowles plan, at least as i understood it to be. from my examination of this bu,

beginning of the budget process. for today, we want to make sure we get the most out of it, so we would appreciate if you could stay on a subject and be respectful of one another. let us remember that we all chose to come today. that shows that we care about our city and this place that we choose to live in and call home. let's move forward in that spirit. >> hi, everybody. i am the mayor's budget director. thanks for having us here. i thought i would do a brief overview of the budget. many of you know how the process works. you have a basic understanding of our budget. i do have a few diagrams to walk us through what we are talking about and we talk about the budget. that is really are a city's spending plan for our priorities, how we will spend money each month and each year, and for the first time, how we will spend money pour the first two years. the city budget is $6.8 billion a year, a big number. half of that is in the city's general fund. the other half is in the enterprise fund. the way i like to think about

to get a budget. is that sort of how the process works? >> normally a budget by the president, budget adopted by the house, adopted by the senate, but you know basically the budget process is expression of the party who drafted that budget's value and blueprint for how you are going to structure the nation's fiscal house. basically that's what it comes down to. >> greta: okay. so the house budget is republican. those are different values than your own. but that without the -- >> quite different. >> greta: quite different. i understand that. but without the senate having a budget it's sort of stops everything and the senate is currently run by, majority by the democratic party. they have 54 votes if you consider the 51 democrats, two independents who caucus with the democrats and of course they get the vice president. until the democrats -- until the senate has its budget it doesn't enable you to sit down and work your values out and talk and work out a solution for the rest of the country. that is the

and the budget team and mayor lee in the board of supervisors, we thought that this format of budget town halls in many districts around the city would make a lot of sense, and i think it has been a very good way for us to have feedback. without further ado, i would like to introduce my co-host for tonight, who is my neighboring supervisor from across the van ness, supervisor mar farrell. it is great to have you here in district 3. [applause] >> thank you, supervisor chiu. i also want to quickly thank everyone the for coming out tonight, especially those from districts two who traveled all the way from the telegraph hill. that is right, go ahead and clap for yourselves. thank you for coming out tonight. last year we started this with mayor lee, and i do think this has become such an integral process and kind of part of our budget cycle in city hall. we really want to hear from you. tonight, that is what this is all about. i hope those of you who are here will take the time to write in your questions. i know there is a format here to come up and speak. we have the best moderator in to

overtime is a very small part of our budget. we're used to staffing 24/7 and responding to rainy weather. we have tried to staff up appropriately. we have had a number of retirements. in particular, we lasted a work force succession planning analysis that showed almost 50% of our employees are eligible for retirement by 2014. we had about 10% turnover last year. i have been doing a great deal of permanent hiring in particular. with that being said, we have some of vacancies, and we're filling those in particular in our power house operations. the item before you today, and i understand the budget analyst support our request, is actually a reduction in overtime year- over-year for both our waste water operations as well as for our power generation facilities up in moccasin. while i am asking for a supplemental consideration, it does show year-over-year decline. thank you. supervisor chu: thank you. to the budget analysts. >> madam chair and members, this request was for 3 diandra $20,000 of additional overtime -- $320,000 of addi

and adopt a budget. and i just implore you to consider letting this committee do the job. >> i thank the senator, and i thank him for his extraordinary effort. both as part of the simpson-bowles commission, and as part of the group of six, now the group of eight. literally have spent hundreds of hours in a very serious way. and i've enjoyed working with the senator. i think senator conrad has given us the best chance to achieve those types of results. what i would consider the regular order, if we can have a budget resolution that allows our committees to function, then we have an agreement such as the bowles-simpson agreement, which is a bipartisan effort that many of you have worked on, it seems to me that's a constructive way of getting into the details that the committee's jurisdiction have to get into anyway. and if we are giving up adequate instruction, we can get to that point without the divisiveness that the budget markup normally entails. i would just like to make a couple of comments. the curr

the president's budget is 2500 pages long and a real budget and not a serious budget.t is a way to say 24 numbers and simply not adequate at all. >> senator conrad you are trying to bring a budget to the floor. >> the budget control act does provide the spending limits. >> gotcha. >> i want to make a point. i hear over and over there is no budget three years. the fact is, what we don't have is a longer term plan. what we need is a 10-year plan . why i am going to mark up the first week back in session and what we need to do is work out on a long-term plan and gets deficit under control. if we don't get together, we can't accomplish anything. >> you have any assurance if you produce a document that major senator reid would bring it to the floor. >> it is a matter of timing. there is little chance we'll get the two sides together. >> you many house and senate? >> no, republicans and democrats. >> it is not a timing, but there are no plans. the president put forward four budgets now. >> i got it we know it didn't succeed. i am talking about the senate. >> you have 23 demo

this is the budget committee. this is what i thought the budget committee does. we get a chance to do this long-term. i said before when i came -- the formula for strong economic health to this country has three pieces to it. yes, we have to cut budgets. i've done that when i was mayor. i offered multiple solutions cutting the budget here. armed services committee, we did a variety of things and had good discussion. it also means you have to have two other components. you have to have new revenues and smart investments. the fiscal commission plan before us today is a very good start in this direction. it carries a lot of credibility with me. if you look at the architect of the plan, as i said, it's very balanced. i respect the plan because it is a broad-based approach. including defense and mandatory spending. including health care. i share the chairman's view that a balanced approach which addresses spending and revenue and tackles both mandatory and discretionary spending is the way we'll get our fiscal house in order. i want to point out the plan reduces the o

to get a budget.s that sort of how the process works? >> normally a budget by the president, budget adopted by the house, adopted by the senate, but you know basically the budget process is expression of the party who drafted that budget's value and blueprint for how you are going to structure the nation's fiscal house. basically that's what it comes down to. >> greta: okay. so the house budget is republican. those are different values than your own. but that without the -- >> quite different. >> greta: quite different. i understand that. but without the senate having a budget it's sort of stops everything and the senate is currently run by, majority by the democratic party. they have 54 votes if you consider the 51 democrats, two independents who caucus with the democrats and of course they get the vice president. until the democrats -- until the senate has its budget it doesn't enable you to sit down and work your values out and talk and work out a solution for the rest of the country. that is the p

so our budget reflects the law. i wanted to make sure our budget reflected a new consensus on how to move forward with the law, but that hasn't been reached yet. so our budget reflects the law, which is trust fund exhaustion in 2013. nobody wants to see that happen. nobody wants to see this massive drop-off in funds. so we did two things in addition to just reflecting the law. we have a new form of revenue stream coming into the highway trust fund from oil and gas exploration, revenues from that. now, that stream of revenues takes a while to kick in. once it kicks in, i think it's going to be far more than the estimates show. and will show a new stream of revenues coming into the highway trust fund. the other thing we did, and john and mitogeke er. we created a reserve fund in the budget, which allows us to change the aggregates, once a bipartisan infrastructure bill is agreed to. so that our budget can adjust to that new agreement. the key is this. the way the highway bill was writtenpat, it based its obligation li

tomorrow we'll begin a budget committee markup of a long-term budget for the nation. as my chairman's mark, i will present the bipartisan fiscal commission plan also known as the bowles-simpson plan. it is a plan which i think best represents an opportunity and a blueprint from which to build a bipartisan deficit reduction agreement. what i am proposing is not partisan. i'm trying to break the business as usual cycle that has been followed for so long here in budget matters. to be clear, we already have a budget in place for 2012 and 2013. the spending limits are in place. they are contained in the budget control act, passed last summer, that provided those spending limits and enforcement measure for the budget of 2012 and 2013. the law states very clearly that the budget control act, and i quote -- shall apply in the senate, in the same manner as for a concurrent resolution on the budget. that's about as clear as it can be. the budget control act stands in the same way, in the same manner, as for a concurrent resolution on the budget for fiscal years 2012 and 2013. s