and you know, i think the budget we've done here is a responsible budget. at least it puts us on a pathway to economic insolvency. sol veins i. and i want to congratulate the chairman and the committee for the good work we're trying to do to keep this country fiscally sound. i also serve on another committee so i want to get into some other issues. on the issue of defense acquisitions, i serve on the defense house appropriations subcommittee with my good friend mr. pull, and obviously we're looking at how to do the acquisitions. as budget requests delays and restructure several major acquisition programs, including the joint, strike fighter, army ground combat vehicle, and the replacement for the navy's ballistic missile submarine. you're claiming that these delays will save taxpayer money. historically, stretching out to these defense acquisition programs to those reduce costs or are you just shifting those costs outside the budget? >> i'd like to start with your comment about our economic demise. maybe i'm just more optimistic about this country but i thi

the democratic budget is. i urge yes on the van hollen budget and no on the ryan republican budget and yield back the balance of my time. the chair: the gentlelady from california yields back. the gentleman from wisconsin. mr. ryan: mr. chairman, i yield myself one minute. they said yesterday we're cutting taxes on millionaires by $150,000. today, it's $300,000. probably going to be $1 million tomorrow. what i simply say this line that we're ending the medicare guarantee, let me remind you, chairman, that this was rated the lie of the year by the nonpartisan political fact of 2011. we don't want a rationing board running medicare. we want seniors in charge of medicare. we don't want to take more from successful small businesses that create our jobs and make them uncompetitive to the global economy. we want to take special interest loopholes out of the loophole, especially small businesses that creates our jobs. more importantly, we want to balance the budget, pay off the debt. ours is the only budget that does

it's difficult to have a five-year budget, let alone a ten-year budget. you don't know what's going to happen. you don't know the emergency. of course when you're not paying for anything it doesn't matter. but reare paying for things now. we're trying to do it. i think both parties are trying -- >> would you politely yield? draw a figure eight if you can. here's the point. this is really tough stuff. >> it is. >> it's really hard given the tough fiscal situation our country is in to balance it. so the question is, what path are you putting the country on? what your trajectory? >> i agree with that. >> ours is you can see balances the budget, it takes a long time. but the key is you're getting the doubt downward and paid off, which is that date you're talking abilitalk ing about. the baseline, what this budget does, sends our debt in the stratosphere. that's the point. >> we have different stratospheres, i understand that. if we would work together we perhaps move towards some tangible evidence. so you can't over simplify these things. you can't ask direct

middle of a budget process. we f we were at home and home w, budgets and someone said your ye mortgage budget is going to go n down, even though you anticip e anticipated what your mortgage payments wereto going to go dowt change what would spend going es forward. the chairman just said he doesn't consider that process no legitimate. i don't know what he considersi legitimate but that is a process of the way the budget is a determined and how wend deal wi it. you've done dthat.ident the president has done that and to hishe credit he is dealing we reality of both war savings, thl savings that that accomplishes and the cuts that are not going to happen. i don' so i don't know how we begin to have a discussion about baseline when the chairman of the budget committee just denied the way ws do it. i want to quickly ask you what you think is on the minds of most americans, which is how bug president obama moves forward in the budget in making sure we grow this economy and we don't e do anything to hurt this frajic eco

budget. all those expected today before 4:00 eastern. you can see the senate live on c-span2. up next senate environment and public works committee chair barbara boxer said she is optimistic the house and senate conference committee will come to a agreement on a conference a -- surface bill. this will be weekly update on the bill's progress until work is done. just over 15 minutes. [inaudible conversations] >> hi, everybody. i want to complete this before i have to go down for the next vote. at the opening of the surface transportation bill conference on may 8th i said i did regular updates and so here i am to talk about progress. i am not going to be addressing specific negotiations between the conferees but i can tell you we have moved have the organizational stage and had 20 hours of meetings staff to staff and we are now working on the substance of the bill. staff has been meeting every day on all the issues. we broke down into groups roughly center around our committees. for example, obv

my budget timeline slide. i am here today with the first of three budget presentations. next tuesday, we're going to have an all staff meeting about the budget, where we explain to folks what is going on and answer questions and take input. we're having two community budget meetings this year. one on january 31 at moscone the rec center. and one on february 2 at mission rec center. both of those meetings will be from 6:00 p.m. until 8:00 p.m. we strongly encourage the public to come out and talk to us about the budget, hear what we have to say, give us any ideas or concerns. we would be very pleased if you would also attend the meetings. i will be making a presentation to prozac on february 7. i will be back here again on february 2 for an update on where we are in the budget process. and then, in front of the

the broader producing a better budget because of this budget. pleased. tand here with my is from colleagues to make these points. can within ten years or less? yes, we can. why shouldthatmatter? why ld who is pulling up to a gas pump gasoline because she afford more? and the answer is this. what if that gallon of gasoline was instead of $5? how could that happen? it could happen if the dollar is replaced as the wo reserve currency by a basket of currencies that include the chinese currency, the japanese currency and others. when england ceased to be the reserve currency, the value of their pound dropped 25% immediately. that could happen to the dollar. that's why the single mom who is pulling up to a gas pump to get $5 worth of gasoline and would instead possibly be paying $6.25 for that same gallon of gasoline should be very concerned about our debt and our deficit. so let's return to that question. can we balance our budget in ten years or yes, we can. the rsc budget proves it. why should we? we should do it for everyle mom. every struggling american.

our budget cuts over $5.3 trillion in spending relative to the president's budget. and returns spending as a share of the economy which historical norm of 20% by 2015. take a look at deficits. if we continue upon our current path, deficits literally spiral out of control. if we choose this path to prosperi prosperity, our budget keeps borrowing a check and puts us on a path to balance. we cut relative to the president's path. debt. if we stay on the current path this is the future that awaits us. a debt crisis. where we know we will sacrifice our current economy and our children's future. it's a path that is accelerated by the president's budget. we are headed towards a debt-fueled economic crisis, and the president's own budget admits this by saying that their budget allows the fiscal position to deteriorate. if we choose the path to prosperity, we can lift this crushing burden's debt. our budget puts the nation's finances on a path to balance and ultimately on a path to pay off the debt never letting the debt get up to levels which could compromise our economy and

>> i think that the budget analyst is referring to provisions in the budget. then correct, the tax code is not before you. >> if we were to make an amendment on the budget analyst separating it, you would have to introduce that item? >> correct. supervisor chu: given that the item is not before us, i would suggest that we cannot make an amendment at this moment. the budget analyst report recommends that we move forward with these items and that exemptions to the authority will be coming before us department by department. do we have a motion to send these items forward to the full board of supervisors for this coming tuesday? without a motion, can we keep that without objection? kept without objection. thank you very much. please call items four through 12. >> item #4. hearing to include financial update and information on budget instructions and process for fy2012-2013. item #5. proposed budget and annual appropriation ordinance appropriating all estimated receipts and all estimated expenditures for departments of the city and county of san francisco as of ma

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

departmental budget, but it showed the entire budget. the same with occ. chief suhr: we would be happy to present a high level, breaking it down by salaries, with materials and supplies, similar to what the pie chart shows. we can do it that way. we can do it with whatever level of detail you like. commissioner kingsley: 3 inches might be in the region might not -- might be too much. but you could give us an idea of the components of the overall working budget. chief suhr: we will have it for you tomorrow. commissioner kingsley: i do not know if the other commissioners would like to see that as well. i do not want to create extra work for the department in doing this, if it is going to be helpful to my commissioners. >> this is our first presentation of the budget. there were plenty of slide shows with a little more detail. i might ask that the captain not give us too much detail. we have already been to percentages of supplies and realistic. the bulk of it is personnel and fringe benefits. i think if you would like to have one, they can

brief introduction to the budget? if we can, right after your brief introduction, we might go right into the revenue letter. after that, we will come back for a quick overview on redevelopment agency, given that the overview will have bits and pieces of the reconfiguration within. >> thank you. happy to be with you this morning to talk about and provide an overview to you of our first ever two year budget. so, if i could have the overhead, victor? i would briefly walk through what is happening in fiscal 12, 13, and 14, talked a bit about what is driving the growth. share some highlights of our budget with you. and then talk a bit about how we balance. so, at the highest level, our fiscal 1213 budget is for the whole city $7 billion, of which $3.5 billion is in the general fund. the number of employees in the city is willing to 26,878. we came to agreement with our labor unions and from the general pattern in the first year, the furlough day that had previously been agreed to expired. that was worth about 4.62% of wage

they have a budget cap required by the budget control act they've got to fit in. so procurement i think is actually going to get hit the hardest. we heard a lot of the program decisions yesterday. i imagine there are many more we have yet to hear. and those will come out over the coming days and weeks. the total savings that they're talking about, and again, this is the savings relative to last year's budget, it's $259 billion over the five-year plan. 25% of those savings are supposed to come from efficiencies. that's another $60 billion in efficiencies on top of $178 billion in efficiencies that was in last year's budget. boy, that's very optimistic to think that you can find all those efficiencies. i think it is incredibly risky to be banking on those savings before they have been achieved. it is always a good goal to try to find efficiencies to try to get more efficient, to root out waste wherever you can in any government agency, in any organization. but to go ahead and bank on those savings for a quarter of what you're doing in this budget i think is a bit ri

what the budget committee budget does, mr. speaker, is gives those dollars to individuals so individuals can enter the marketplace, not a free-for-all marketplace but a regulated and guaranteed marketplace where policies are guaranteed to these seniors so individuals can then control those dollars and make their own choices about health care decisions. so just to be clear, we are not arguing about dollars and cents in medicare. the president's vision and the budget committee's vision, virtually identical. what we are talking about, though, is who controls those dollars. are they controlled by one size fits all, 1965 blue cross blue shield plan, soon to be revised by the ipab board, or are they controlled by my mother and my mother, your mother, your father, our neighbors, aunts, uncles, individuals, americans who will make those health care decisions for themselvess? for me the choice is clear, individual freedom will always be my choice over government control. but getting back to the actual rule, mr. speaker, that's what is

fact is we have a budget for this year, we have a budget for next year and pass in the budget control act was an overwhelming bipartisan vote in the u.s. senate with a strong vote in the house of representatives and signed into law by the president of the united states. we all know this is the beginning. this budget proposal of the president. we know more has to be done. it will for choir a bipartisan effort. to do more than what the president has proposed, will require both sides to come together. we hope that can occur in this budget process. i think we understand this is an election year. and so try to come together is difficult in that context. i retain hope. i retain the belief that working together in a good-faith basis that we did in the fiscal commission as we did in the group of six, we can reach agreement across the aisle. with that, i will turn over to my colleague, congressman van hollen koy very much appreciate is coming to be with me here today. >> thank you. thank all of you for joining us today. the president's budget is a budget that is good for the country. it is goo

it's not my budget. it's our budget.l 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. [applaus

the budget follows. the budget, as you know, does have a 1% decrease in dod. so the secretary is making tough choices. i think you should talk to him about specific programs. i think he can't generalize -- i do know a little bit about contracting and procurement. i think you can't generalize on that. i think you need to look program by program and any specific questions you have i would direct to the secretary. >> i will be talking to him tomorrow. but as you probably well know, being from the private sector and i'm from the private sector myself. when you push off these large acquisition programs, your costs increase in a number of studies that show that the cost increase on this is as high as 40% increase and the actual acquisition cost. but that won't show up in the budget numbers because you're shifting those numbers beyond the budget window. so it's something that we're very concerned about. one in additional costs that puts on these programs, which makes it more difficult to explain to the american public why we're expending as much money for these parti

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

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

typically, those preparations occur in the budget so you may well see this as a source in the budget to fund specific uses. sometimes those are capital and sometimes their technology, sometimes they're operating improvements that involve staff. it could be a host of different uses. supervisor avalos: the difference between $18.30 million and 9.69 is what was budgeted? >> it was what was left over from the prior year that was not necessarily spend in the current year budget, correct. so the bottom line, there is more detail in the report itself is a $43 million improvement. as they work to balance the next two years budget. the budget director can provide some greater context for how this fits into the budget balancing conversation. supervisor chu: think you. -- thank you. >> good afternoon, supervisors. kate howard, mayor's budget director. i have an update budget for you and you have a copy of the hand out in front of you. just a reminder for everyone, a few notes about our overall budget so -- we are combining city and county. the budget is $6.80 billion. about half in the general

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 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

budget proposal. so my question to you is how does your budget tackle this issue of balance and fairness for the middle class, and what are your specific proposals to make sure that as we attacked the tackle the goals of an investment in the future in the deficit reduction we are calling on everyone to share in the sacrifice not just the middle class and most laudable. >> to read the balanced approach has been central to everybody's recommendation here including the some symbols recommendation and its central to the president's budget and asking the wealthiest americans to pay their fair share that 1.5 trillion comes from that and comes from ending some corporate loopholes and and necessary corporate tax expenditures like not taxing the interest of ordinary incomes, corporate jets etc. come asking everybody to pay their fair share of raising revenues is a central part of that and at the same time there will be no tax cuts for the middle class and no family earning under the to under $50,000 telephony

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

start with the republican budget. let's look at how this budget puts medicare spending on a sustainable path. may i click? yep. my battery's working now on this. this shows you the growth rate of medicare under the republican budget over the long term. this shows you how we can do a plan where there are no changes for people in and near retirement. and how we have more choices for people in the future, 54-year-olds and below. this year's budget, it's a fact that people don't like to hear on the other side, but it also guarantees the traditional fee for service plan exists forever. these are guaranteed coverage options. now, the gentleman talks about a cap. the cbo themselves tell us they don't know how to measure competitive bidding. therefore, a i

budget. 10 years would be a good goal in my opinion. we are not -- a mass of austerity program cannot be done. it is not realistic and it is not what i or republicans would propose. yet, in the face of an existential economic threat, president obama submitted a budget yesterday which makes no alterations in our debt course. on the president's budget plan, using the numbers from the white house, total federal debt will hit approximately $26 trillion an increase of 75% from 2011. 75% increase. interest costs will rise from $225 billion this year to $850 billion annually, and spending will increase. spending over all will not be cut, but will be increased by more than 60% by your own budget submission. this year's deficit will be the fourth consecutive deficit in excess of $1 trillion. meanwhile, medicare and social security, for which the president proposes no reforms will continue on the path to insolvency. if this were not bad enough, no serious solutions to serious problems, the white house

this budget does that. the budget exceeds the deficit reduction targets. it consistently lowers the deficit as a share of the economy until it's under 3% of gdp and stabilizes a debt as a percent of the economy. the president does this not by arbitrarily slashing defense, but by taking a balanced approach. so the question is not whether to reduce the deficit, the question is how do we reduce the deficit? and the president's approach is the balanced approach. it takes the frame work we saw from the bipartisan commission and it adopts the very cuts that we made in discretionary spending in earlier months. it cuts another $600 billion in mandatory spending. and it does eliminate a lot of the special interest tax breaks and asks the wealthiest of americans to go back to paying the same top rate that they were paying during the clinton administration, a time when the economy was booming. and that balance is what our republican colleagues have objected to. this is a question of choices. if last year's republican budget is a sign of where we'll head this year, th

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

we added positions to the budget and substituted of budget positions. they need to be supported by our operating revenue. by adding those positions, we would have seen an increase in salaries, but because of proposition see, we benefit from that. the capital budget is where we are excited to see that growth. we have all $11.9 million budgeted for capital projects. not as much as we have 411-12. we are budgeting $2.9 million to operate -- to operating costs. this is the policy coming into action. this is the action of putting funds away for future capital. fiscal year 1314 -- 13-14, we increase the budget to 92 million, supported by additional revenue growth. parking, commercial, industrial, rent and cruise continues to seek growth. all that is tied to what we are seeing in actual income in the current year. fund balance remains steady. what you saw last year is we had a robust fund balance and we thought it would have to decline for 12-13, but by putting designated funds away we're helping to sustain that level and keep pounding at a more constant level

budget? >> in the budget we have, we payers. president had previously was he had not led dividends go all the in this budget he decided that not lay out what the rates would made clear is it needs to be reform that leads to a tax code you let the bush tax cuts expired. things like the dividend rate is system. you hundreds the a more fair tax occurred. good and region where you could see a more tax code. we are saying when you do taxth. we have to patch it every year,, and we are essentially saying we should replace it ahoy -- to replace it, but the best off are being asked to pay less than the middle class. corporate jets and tax expenditures, and those areyou get a net of 1.5 trillion dollars. >> [inaudible] but then not talk>> reform takes time, and the president wants to be very specific about how we are going every dollar of revenue, so we want to have tax reform, but the comes from. >> to answer your question, we do believe in the individual tax reform we would like to see individual tax reform that would also contribute 1.

walk through the budget with you had an overview level, talk about tax increment, the gsa budget impacts and the general fund impact. finally, talking about the general fund supported activities that will be and absorbed into the general fund in this budget, rather than in the redevelopment agency's budget. as you remember, earlier this year, the state legislature passed and the governor signed ab 26 and 27. 26 was found to be constitutional and dissolved the redevelopment agency throughout the state. in our case, the city and county became the successor agency to the redevelopment agency. the assets of the agency were transferred to the mayor's office of housing, port, and city a minister's office. you will recall also each successor agency is required to have an oversight board. our oversight board oversees the fighting to management of certain real development agency assets. at the highest level, the three major approved development projects and the house and work that was done by the former agency will continue. the oversight board has adopted what is called a recognized obligation p

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

budget. and for the other members of the board of supervisors that have engaged directly with us. supervisors avalos, kim, elsbernd, cohen. and the department heads that worked very hard with us. i see of they cisneros, who the police chief and our fire chief. barbara garcia and trent have worked extremely closely with us because of the tremendous pressure that we feel at the state level and the national of bochum, trying to get a really good conversation about how we can make sure that the community based organizations that provide invaluable service to us are taken care of and working in collaboration with us. hall of the a jar work that she does with all of us. i want to thank her for her tremendous leadership. again, i can say about about my good friend, someone who i got the chance to work with for many years. you have taken up so many complicated challenges this year, we're going to keep you busy. thank you for your wonderful team. our new city administrator that is no longer new, your

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

thunderstorm budget? -- under this budget? >> you're entitled to medicare. >> do you get a subsidy from the general treasury to pay the premium? >> you pay a large portion -- >> has any subsidies coming to millionaires under this budget? for medicare premiums? from the general treasury? >> medicare compact with seniors is maintained. >> so the compact is that we're going to let millionaires go -- be subsidized forever, is that the compact we all signed? >> that's the compact we have. they pay a higher share of premiums -- >> i did not sign that compact. i do not believe. that i think i should be paying the full premiums. but anyway, thanks for coming. >> next, senator warner. >> thank you, mr. chairman. and i appreciate you being here. i do concur with my friend, the senator from south carolina, that we do need to take on a comprehensive approach to the long-term deficit issue. i think one of the -- a lot of statistics are thrown around but if there's one take away, i think -- takeaway that i think i constantly come back to, w

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

i also believe that we have a budget that is a compromise budget, but a budget that really reflects all the different input that has come from this body. the quota would be a good part of it, from the administration, as well. i feel great about the budget and have district 11 has been treated in this budget. i think it we were able to compensate for my district not getting a lot of resources in past years, even my was the chair of the budget committee. those resources will be tremendous for open spaces, streets, and pedestrian safety work force development and agriculture, which could be a great boon for our neighborhoods. i want to thank my colleagues for the flexibility of looking at district 11 and how it could serve in a greater way that has been. we do not have a lot of development in my district that brings in a lot of other dollars and this is a way to compensate for that. thank you. of course, the comptroller, the budget analyst, victor young, cheryl adams, all of your work as well was tremendous. you brought a great attention to detail to help us in this committee. thank you. >

some i'm pleased to participate in the presentation of this budget and pleased to support this budget as we move forward out of committee and on to the floor. i'm honored to yield the remainder of diane black who will also discuss the health care issues. >> thank you, chairman price. let's just start out with a couple of simple facts that i think no one in this room canr . first of all, we have 10,000 baby boomers added to the rolls each day. medicare's exponti cau the prog bankrupt in ten years. the congressional budget office and the medicare and medicaisn alarm bell about dwindling finances, and we must act now. we cannoton ignore the facts. over 46 million americans righ health care. and something must be done to save this vital program for future generations. we must protect and preserve medicare for bothseurors and ou president's budget proposal failed to address the medicare's grim future. now, instead, what we have on the books now is a 15-member board that is charged with cutting costs and denying care to our seniors. the independent payment advisory board established in the

the president's budget replaces the sequester with the balanced budget. with $2.50 in spending cuts for every $1 of revenue increases. we made tough choices and we all need to work together to maintain this balanced approach. in closing, as a business person and now as acting omb director, i believe the president's budget makes the right investments to make us even more competitive in the global marketplace and achieving declining deficits and stabilizing our debt is critical for business confidence and investment. this is good for business, good for the middle class and good for america. i look foosrward to taking your questions. >> thank you, director zients, for that testimony. let me start out by saying i have seen the president criticized for not cutting the deficit in half in his first term. what was the deficit of the share of gdp that he inherited, do you recall? >> it was over 9%. >> i believe that first year it was 10.1%. in 2013, what will the deficit be as a share of gdp? >> 5.5%. >> that is pretty close to being cut in half. what will it be i

it is not in the budget. i am wondering if this would be the place where that would go. >> the -- that piece of legislation would impact the city's revenue. that comes into the budget and then gets distributed as general fund. if that legislation were to be approved, and if the programmer to be funded, we would effectively reduce our revenue by an estimated $2 million. supervisor chu: it gets reduced -- >> yes. supervisor chu: thank you. with regard to the budget analysts recommendation? this is an allowance under the initiative. and the budget is assumed before you. >> madam chair, eyes -- i fail to mention the control, which is $6,653, and that is ongoing savings that would allow an increase in the budgets department of the 6%. >> if there are no questions from the committee at this time, let's move on supervisor avalos. >> i'm not sure if my staff had contacted the control office about the small-business exemption that we preliminarily passed last tuesday. it does show a hole in the budget of two million d

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