leadership of people like bob hale and marty dempsey, we've been able to do it. the budget last year was cut $37 billion because of sequestration. i might remind this committee, as you well know, that is in --ition to the $487 million $487 billion 10-year cut that dod was already implementing. the bipartisan budget act gave dod some temporary relief for 20 14 and 20 15. it still imposes more than $75 billion in cuts over the fiscal year this year and 25th team. unless congress changes the law, before 2016,ow sequestration will be back as the law and that will take another $50 billion each year fy 2021 damaging the military's readiness, undercutting our defense strategy and our capabilities. the president's five-year plan provides a realistic alternative to sequestration project in a $150 billion -- $115 billion more than the law allows. this is the minimum amount that we believe is needed to successfully execute defense strategy. since my submitted statement describes in detail the rationale behind those key decisions, i want to focus on two critical areas. first

but because of the kind of leadership and people like bob hale and marty dempsey, we've been able to do it. last year dodd's budget was cut 37 billion. it was cut $37 billion because of desequestration. i might remind this committee as you all know, that's in addition to the $487 billion ten-year reduction under the budget control act of 2011 that d.o.d. was already implementing. december's bipartisan budget act gave dod some temporary relief from sequestration for fiscal years '14 and '15 but it still imposes more than $75 billion in cuts over fiscal year this year and physician ca year 2015. and mr. chairman, unless congress changes the law, as you all know, before fy 2016, sequestration will be back as the law. and that will take another $50 billion from our budget each year through fy 20-21. damage thing the milt military's readiness, undercutting our defense strategy and our capabilities. >> the president's five year plan provides a realistic alternative to sequestration projecting as you know the $115 billion more than current law allows from 2016 to 2019. this is the minimal a

a partner at wilmer hale be a, and we're goi talk about what businesses can do when they recognize a cyber threat and the measures that they should put in place. please, welcome, bob. [ applause ] >> you've had the opportunity to listen to a few panels this morning and the discussion with the admiral. what is your biggest -- >> when are we going to get to cyber security? [ applause ] >> you know, just for you i'm going to start there. what is the biggest issue facing corporate america right now when it comes to cyber security? what's the biggest -- >> a lack of understanding of the area, the issues, and a policy or a practice generally of ceos and top management to delegate problems, and not recognizing the depth of the challenging and how swiftly a cyber attack can cut your reputation down. and not anticipating, not knowing this arena, it's very difficult for them to come up with an organizational structure that will immediately elevate those facts that could lead to substantial damage in the corporation. i look at what happened to me in the bureau and one of the mistakes i made was in upgrading our information technology, for instance. >> how was that a mistake?