the gao was not involved in that. but more broadly, when it comes to these conferences, many of the programs to allow presidents to purchase paid in conferences. the concept is -- allow participants to participate in conferences. the concept is that state and local governments are tracking those expenditures to make sure they are done appropriately. host: one of the grants that have been used by dhs with a halo counter-terrorism summit in 2012. it was held at the paradise point resort on an island outside san diego. it was a five-day summit and was deemed allowable by dhs. it talks about a luxury area and then it goes through and details other things that were happening at this. the marquee event was the highly anticipated apocalypse demonstration. and there was a zombie-driven show designed to simulate a real live terrorism event. guest: it is interesting to find our what federal taxpayer money goes toward. i have a lot of questions about that. but it is an illustrative example of a who allows -- who decides where th

the gao released its report in march of 2011. specifically, the report said that there were concerns about transparency and other issues with the fra selection process. they couldn't verify, again, some of of the criteriagy -- criteria by which some of these projects were selected. can you cite any improvements in that process? again, you were citing a number of projects, but also criticized by gao for the process. >> be look, we pay anticipation to what the -- we pay attention to what the gao says, and we've tried to improve our decision-making process. we've tried to use the governors as our partners in these projects and receiving proposals from them and from the states, from their d. opt t.s and then working with them. and we've, you know, we've paid attention to what the gao said and tried to improve our process for selecting projects. >> well, the other most recent report by the inspector general -- and that was released just weeks ago, september 11, 2012 -- it said that they raised concerns about fra grants management fram

i'm jim, well known to tom and ed, i'm a housing specialist at gao. so i'm going to ask ask my usual provocative questions, that's what we're trained to do,ing right? be skeptics? actually, this is to mr. haggerty too. of course, i haven't read your book -- >> you can fix that immediately after the program. >> all right. i actually do plan to buy it. i have a long history myself dating way back to fannie and freddie, well before i ever came to gao. but my question's basically this, i don't know whether you've done this in your book, i haven't seen anything along the lines of ed's either on this or, for that matter, even the financial inquiry commission didn't seem to be doing what i'm about to suggest which is something that, you know, gao would do. if we were asked whether or not the federal government was primarily or even exclusively responsible, the first thing that i know i would suggest to my colleagues is, okay, let's do a side-by-side comparison. you have got the private sector, you've got the private label, right? you've got the portfolio len

>> that's why we're asking for the gao study. i'm laying out my suspicions, but it could involve a lower lending rate, for instance, when banks are borrowing money. it could involve a lot of lower rates and costs associated with too big to fail banks versus other institutions. >> what other issues do you want the gao to investigate? >> this is very focused on the concept and reality of too big to fail, and is that perception in reality causing market distortion distortions in favor of the too big to fail institutions? that's something that's been debate and talked about. we're trying to get to the bottom of that in a fairly systematic acdehm democratic way so that we can have a serious discussion of it. >> so do you have any evidence that they are getting preferential rates? >> well, sure. for instance, we're debating an issue right now, continuation of a program that a lot of regional banks want, of insurance guarantees for certain types of their funds, and they say if this program which exists now stops existing after december

. ♪ oenro ku ot aerth diri ths g sfth gao meicd plom ro bes la, o ridoha?m shng a ceew wis, tinedo n si. 'vt ser . ethousi neo t ava o geoeauly omom fi. j aerng t' d. isju a leim thg t w h ady whbung u sere tot y s. igh is idlla en'r oo yeis wo mng w hesi lit tinle om iotithe nn lioctyne nan eo ieog at t. >>te e. >> wtolng. ibevnmpf glwind nng w w gto. go. e go ne tp i s amndheoohil keryg . 's pctec tve o ag haid zz melldsf uf she h wng he t ikl m sar. >>utsiutfmi ac llri t'ar t. tt, e dhay. no prm. lt rino yeng tl y ckou yt. thac alit t ck hees doy gs outlt >> nirg t. as, iet ttht. >> yeerdein ar i. umhemae. >> gh ari >>'sir itng t aitly . lee' bdt wk heagnd t ck erarse dt womssiy mbhrasard. shi diit tomi kius l anah ang gr hg nrnin scasn i b bufu l octy e ho ynoe ed i ho a leunloro re." t ulldo s 'rot aedlout o go i t y s w ke trh se'o exd li st'ut er t wotoat 'rinte. orf tin a go, aewck bu yoowteaald seatoin heck 's bea sn t. meseeunha thaf cg i t. lyouur tr en'sk meas s folihe hat iju ke ry qndorsong a. ano tct in hll l o fu me i wre pl l iss yma doth'd

what the gao said i would try to improve our decision-making process.we've tried to use the governors as our partners on these projects. receiving proposals from them and the states and the d.o.t.'s been working with them. they paid attention to what the gao said and tried to improve our process for selecting projects. >> the other most recent report by the inspector general was released just weeks ago, september 11, 2012. it said the race concerned about fra's stakeholder agreement process. would you like to comment regarding their criticism? >> the comment i would make is when this program started as part of the stimulus program which you indicated $8 billion. we've never had a high-speed rail program at sra were d.o.t. that we had to staff. are we short of staff? yes. have we stopped up? yes. have we found people with expertise? we take seriously what the ig tollison try to make improvements. on the date this program started, there was no high-speed rail program or staff. we had to staff up for that. >> we do have only one high-speed rail project und

for example, the gao said in its report that they had warned in june that states would be the primaryient of the discovery act. many states and not half real plan spree did not have -- not have rail plans and. my concern is whether the u.s. has priorities of where to begin and where we would end. what we have seen in the past couple of years is no funding from the federal government. we really comment in some kind of dream of going, some of the state's will continue to move forward because even in the best circumstances as we approach the cliff, in not going over there will be very significant reductions in every kind of program made. that is the case. i need to hear the case for why we would prioritize at least one of the places you have funded that looks like it is ready to go and go with it. if you do not do that, you must have some view that some miracle is going to happen in the economy so at least the public sector will continue funding. i cannot see that. if it is not the case that we can expect public funding for all parts of the country and in next five years. let's take the

. >> i enchanted rather, well known to time and at the housing specialist in gao. i'm going to ask provocative questions. that's what we're trained to do. to mr. haggerty, of course i read your book. >> if you can fix them immediately. >> i actually do plan to buy it. i have a long history self giving love back to and freddie. my question is basically this. i don't know whether you done this in your book. i haven't seen anything along the lines for even the financial inquiry commission didn't seem to be doing what i'm about to suggest, which is something gao would do. if we were asked by the federal government is primarily or exclusively responsible, the first thing i would suggest is okay, let's do a side-by-side comparison. that the air, private-label, portfolio lenders. you know if their performance is by origination year. q-quebec 298, 99 when the bubble began to go up to 2006 and even beyond 2007, if you want to fascinate and a side-by-side comparison. that's got to include not just going to fault. i seen it in article, but that's not adequate in my opinion. y

and because items number 1 and 2 are sponsored by our president david chiu and he's tied up in a gao committee meeting right now, hopefully without objection, we can jump to item number 31st. so, without objection, mr. evans, please call item number 3. >> item number 3, [inaudible] ordinance amending the san francisco planning code by: 1, adding section 318 to put a cap on the number of efficiency dwelling units, as defined in the building code, that can be constructed with reduced square footage unless the units are group housing, affordable housing, or student housing; 2, amending section 135 (d) and adding section 135.4 to impose open space and common space requirements on efficiency dwelling units with reduced square footage; and 3, making environmental findings, planning code section 302 findings, and findings of consistency with the general plan and the priority policies of planning code section 101.1 -- with reduced square footage. >> thank you. and the sponsor supervisor scott wiener. >> thank you, mr. chairman. today is planning code legislation to the efficiency unit legisl

the gao was not involved in that. i am very pleased to say. but more broadly, when it comes to these conferences, many of the programs to allow participants to participate in conferences. the concept is that state and local governments are tracking those expenditures to make sure they are done appropriately. host: one of the grants that have been used by dhs with a halo counter-terrorism summit in 2012. it was held at the paradise point resort on an island outside san diego. it was a five-day summit and was deemed allowable by dhs. permitting first responders to use grant funds for the $1,000 entrance fee. it talks about a luxury area and then it goes through and details other things that were happening at this. the marquee event was the highly anticipated apocalypse demonstration. -- zombie apocalypse. and there was a zombie-driven show designed to simulate a real live terrorism event. you can see some pictures of that. guest: it is interesting to find our what federal taxpayer money goes toward. i read about this in senator coburn's report.

these the ships gao says while they work are causing problems to make things a bit more difficult. like everybody else is dealing with financial issues, budget issues. they are doing their job, best they could possibly do. would like more and newer equipment. take a listen. >> these things are getting old and tired, hard to find equipment and parts for the main movers, engines and generators. frankly they're just designed in a way that doesn't meet environmental standards and all those things. so they're becoming increasingly difficult to maintain and operate. >> we're missing 2/3 of the opportunities to interdict drugs because we don't have a ship in the immediate vicinity. could be because the ship is currently back in its home port doing a main propulsion repair. that is the immediate impact we're seeing right now, are the missed opportunities. >> reporter: of course there is very wide range on the coast guard's 11 missions supporting terror operations in the middle east to busting ice breakers in the north and the boat situation here in california. very wide situation here and

decreasing the massive growth of the federal government in areas that aren't making any difference and the gao has $200 billion a year of that. >> why isn't that happening? that is rational and reasonable. >> there is no leadership at the presidential level or in congress. >> simple as that? >> i don't know of another explanation than people to stand up and say i think our country is worth saving and playing politics for the short-term political gain may help in the short run but in the long run does tremendous damage to the country and to the confidence of government in our country and tremendous damage to those that we want to have confidence in, who's going to loan us the next trillion dollars this year. >> my question is, why aren't you trying to convince your colleagues to come around to see it the way you do? you said there is no leadership on capitol hill. >> it doesn't matter what i think about the details. what does matter is about the process and the policy. what i would tell you is people are playing to the media rather than to the future of the country. the thing that is unique abo

walker used to be the government's top accountant, the head of the government accountability office, the gao. he now heads the peter g. peterson foundation, which is a strong advocate for reducing government debt. he says that 85% of the health care bills are paid by the government or private insurers, not by patients themselves. in fact, most patients don't even look at the bills. does that make any sense? most things you buy, the customer has some impact. >> we have a system where everybody wants as much as they can get, and they don't understand the true cost of what they're getting. the one thing that could bankrupt america is out-of-control health care costs, and if we don't get them under control, that's where we're headed. >> as we'll see when 60 minutes on cnbc returns, patients with their family's support often find it easier to hope for medical miracles than to discuss how they want to die. ♪ [ male announcer ] the way it moves. the way it cleans. everything about the oral-b power brush is simply revolutionary. oral-b power brushes oscillate, rotate and even pulsate to gently loose

and that gao study confirmed that. >> is the opposition to this point, is the opposition primarily because be unprecedented? >> well, i think this whole opposition seems to have gotten out of control. i think senator rand paul did a very -- a republican, a tea party republican did a very good job of responding to that crazy bastards comment. because what he said on the senate floor, he said look, even a crazy bastard has a right to be tried before being put in prison for the rest of their lives. and that's a very fundamental american value. it's a value that seems to have gotten lost with guantanamo. it's also one of the things that i think a lot of people don't realize is for all senator graham talking about what a great prison guantanamo is, the american taxpayers are paying $85 million per year to hold 163 people. half of them have already been cleared for release. that's over half a million dollars per prisoner. in the federal prison system, even for maximum security, it's more in the range of 35 to $40,000 to hold a prisoner. so we're paying over ten times per prisoner to hold people.

. >>> now, if you thought the gao was the only one lavishly spending federal dollars on excessive corporaterips and parties, think again. we've got another one. reporter caroline may of the daily caller shines the spotlight on travel promotion agency brand usa and joins us now for the latest on this outrageous story of more government waste. caroline, welcome to the show. okay, so what is this? is this some sort of tourist board set up by the commerce department and they're just spending our money? what's going on here? >> well, actually, it is a fee -- the money comes from a fee that's levied on visitors to the united states. so technically it's not taxpayer money, but it is government money. this brand usa was created by a 2009 piece of legislation. and it said basically that for every $1 that this corporation, its mission is to promote travel to the united states from people coming -- for foreigners the come to the united states and participate in, you know, visiting the country. for every $1 they are able to raise, they receive $2 in government cash. >> right. >> and basically, with the

be evaluated cost estimate according to gao's cost guide which provide a best practices for developing reliable cost estimates. the group to these practices into four characteristics. whether an estimate as comprehensive, accurate, well documented, and credible. based on our experience, a hearing to these practices helped reduce the risk of cost overruns, missed deadlines and unmet performance targets. the found the real authority produced a comprehensive cost estimates, including most project life cycle costs, however, they are not based on the complete set of assumptions. the cost estimates are also accurate and based on the most recent project scope, including inflation adjustment and contained few mathematical errors. with documentation, and both methodologies are well documented but it does some cases, we were not able to trace the cost estimate back to the source documentation. the also could not verify how certain costs components captivated. having complete documentation is important -- components were calculated. having complete documentation is important. in regards to the co

the gao says at least half of that will be wasted. in other words, it'll never get completed, it'll never do what it's supposed to do. in "back in black" we had a program in the air force that said you ought to cancel this. we said this two years ago. you ought to cancel this, because it's never going to work, all right? here's how inefficient government is. this last week the air force canceled it finally. they spent another $100 million on it before they canceled it. they paid a settlement fee to cancel it of $8 million. but two things didn't happen. the person that was responsible for that contract didn't get fired and wasn't held accountable, and the company that didn't provide the service didn't get sued to get our money back, the taxpayers of this country. nobody runs their household that way. most state governments don't operate that way. but we are totally incompetent when it comes to spending america's taxpayers' money. so why would we continue to waste $32 billion a year on i.t. programs that don't work for the federal gover

third based on recommendations made by the gao and hud and the direction of fha in this year's report the actuary change the way it reflects losses from defaulted wrote -- loans and reverse mortgages and economic value of the m m i fund. let me be clear. these are important factors to continue -- to consider when explaining the current status of the fund. they do not minimize the seriousness of the report in any way. as i said at the outset we have taken significant action to protect and strengthen the fund including premium increases and changes to credit policy such as increasing down payment for lower credit for borrowers and ending seller financed downpayment assistance. with your help, our efforts have added well over $32 million to the fund. the measures i will outline today further address the primary source of the problem. losses stemming from legacy of the business particularly those injured during the 2007-2009 year ago and are designed to reduce our losses and loss severities by 5% generated approximately $3 billion in economic value over the next two years. first, we have

gao said the department of state has not responded or done the review. find it interesting or going to do the review. i want to ask you in addition to the four dead americans, how many people were wounded that night? >> i think there were three americans who were wounded in one of them his son walter reid hospital. >> is one of them? any idea how bad their injured? >> yes, sir. the gentleman, our colleague at walter reid was injured very badly. >> so whenever we found out this attack to plate, how long did it take us to get there, to fly to hope this people we knew were wounded. how long did it take to get their boarded the plane leave from and where did it land? >> a plane left from tripoli as i mentioned before. >> elicited in tripoli? >> the chartered aircraft as soon as they found out -- >> would've a chartered airplane take off from? >> tripoli. >> so flew to benghazi? i wanted to sit on the tarmac? >> the team was better for three hours while they were trying to determine what happened to ambassador stevens. >> what time did we get them -- where di

when you request reports like this from the general accountability office, gao and begin to wave thatund. here is the justification for closing guantanamo, it is not going to be dangerous to do so, again, it calls into question the long term motive here because i don't think the administration really fully comprehensive all what would be involved not just cost wise but giving that platform to those who are most focused on trying to destroy our system. so that is why we are so opposed to this. >> heather: thank you so much for joining us. we appreciate it. >> gregg: new concerns about the safety of diplomatic outposts overseas after a deadly terror attack in benghazi, libya. the topic playing in discussions during capitol hill during a series of meters and susan rice leading up to her possible nomination to be secretary of state. catherine herridge is reporting from washington. >> including the benghazi consulate a report in 2009 recommended physical barriers like this one. at a closed hearing before the senate committee, witnesses testified that those changes were never made in bengha

i do not consider my role as micromanaging when in 2005, gao said they should have a strategic plan. in 2010, the i.g. also, didn't you also say they should have a strategic plan and there was not one? >> yes. >> for the record, in 2011, i think i became chairman that year, mr. boardman did come forward with a strategic plan. i have november. sometimes our role is one of oversight, one of prodding, one of making sure that what should be in place -- i come from a business background. if this is a corporation which is subsidized heavily by public support, at the very least they can do is have a business plan. that should be flexible. let's take the inspector general's report and look of the implementation of strategic plan. let me preface my remarks by saying that there is no one who is a stronger supporter of passenger rail service in the united states than this guy right here. it is cost effective. i'm a fiscal conservative. you can move more people for less. as far as the environment, energy, it is an absolute winner. we have to do it with the least amount of subsidy, and god forbid

i will say, first states have cut spending but they have to cut way more according to to gao, they have least 13% every year. their reason is, one of the things we should not forget is one of the things we should do when times are good is actually save money. >> yes. >> it's not what states have done. when time was good, they were spending, spending, spending and spending. in fact, states, when private gdps grew by 5%, the state spending is double. states get their revenue from people. they better well make sure as people are able to pay the bill. >> aren't there two aspects to this? there's what we save, but also what we invest in. we have to invest in people. as the governor said, if you are looking at $644 million in cuts and education, title one, students who need support, learning disabilities and physical disabilities, those are cut. that goes to the state. it's an investment in the economic future of the state. the one question i have for you governor, there was a new york times piece that was quite informative about the amount of tax give aways to corporations, right? >> right.

. >> reporter: the gao report the government accountability office says the condition of the fleet overall. they say that the fleet is generally declining. of course a situation where about every single agency and you and i are dealing with budgetary concerns nationwide the coast guard is no different. this is a cutter that has been decommissioned. it's on its way to the bay area where it will be stipulated down and sold to one of our allies most likely in the pacific region. there was one just like it. this one was commissioned in 1972. this one behind it served in vietnam and it's still serving today. as you might imagine it's a little bit outdated, it's difficult but the coast guard still gets its work done even though they would like some new ships, take a listen. >> these things are getting old and tired hard to find equipment and parts for the main moverrers, the engines and generators. frankly they are just designed in a way that doesn't meet environmental standards and all those things. they are becoming increasingly difficult to maintain and operate. >> we 4 miss about two-thirds

the gao did a study that showed 1,321 people are on the terrorist watch list attempted to buy firearmsf the cases the fbi was powerless to stop them. it would also require that if you're going to get a concealed carry permit, that you have certain minimum requirements like age and some training lessons. and in addition, it would say that you have to report within 48 hours if your gun is lost or stolen. 600,000 guns are stolen from private homes every year. so this is basically the lowest hanging fruit. it is really ripe for legislative passage and i would hope it might get some traction. >> you picked the five because there is a poll over the summer by a gop pollster that says these are not only things that are mildly supported by nra members, but they are in the 60, 70, 80 percentile of support from the membership. >> that's exactly right. these are common sense gun safety measures. i think it would give some greater credibility to the nra to support what the vast majority of its membership is willing to do. i don't expect them to, but i would hope we get some bipartisan support for t

now while the gao says the relationship with china is important he is not encouraging communist government as he said in the quote. may not be your cup of tea. bob beckel, former campaign manager. andrea tanteros, news day columnist and both co-hosts of "the five." andrea, you do you have a problem with that? >> yeah i do. i wonder if i studied history to look at eastern europe to see how welcome nism worked for those countrys? the reason he is saying that, mr. immelt, our jobs czar sent a lot of ge's business over to china. we heard during this campaign, this grueling presidential campaign, martha, president obama attacked mitt romney for outsourcing when his jobs czar, jeff immelt, sent, couple of examples. one company in wisconsin, the summer over to china. another light bulb factory in virginia over to china. i mean ge got $1.2 billion in stimulus funds. they send the jobs over to china. no wonder he likes china so much. martha: i mean a lot of people have the problem with the way this jobs czar handled things in his own business and feel it is not reflective of somebody working really

i also commissioned a gao report that was completed in 2006, and that report noted the significant progress that had been made by the state department in building secure embassies in a cost efficient manner. it recommended that the state department develop a comprehensive facilities plan to more closely track costs and results. working with former secretary of state powell, we initially were successful in getting extra money to accelerate the embassy construction program. but in my view funds for this purpose have never caught up to the threats faced by our diplomats in the post-9/11 world. there have been suggestions that cost considerations contributed to the inadequate protection in benghazi. last week as preparations for this hearing were getting under way, the state department announced it would seek $1.4 billion in the 2013 budget for an increased security proposal based on recent review of the worldwide security posture. i am pleased to see the proposal notes, quote: we must insure we strike the right balance between security and engagement, end of quote. i'll be interested to hear f

the gao found in an investigation that 1,321 people on the terrorist watch list bought firearms or explosivesases the fbi was powerless to stop them. likewise, the nra members feel that if you have a gun that's lost or stolen, you ought to report it within 48 hours. 600,000 guns were lost or stolen last year that were unreported. so it's things like that that we need to -- >> i'm sorry, congressman. i don't want to run out of time because it's an important conversation. are these the issues that you wish to deal with the legislation you're proposing now? >> yes. well, that's what would be included in the bill. and i know we would have the support of the vast majority of the american people and the majority of nra members. >> how do you know that? >> well, because of this poll that has -- that can gop pollster took and found that most nra members are not nearly as extreme as the nra leadership is on this. so i think there's a possibility of getting some common sense gun control measures passed. and you know, i know it doesn't look like this congress can do anything, but i think we need to try,

gao has done a number of programs on many areas including the administration of justice. would look at low performing programs. there have been a number of evaluation of programs that ask whether there actually retrieving -- actually achieving the results? many studies have been done that show some programs don't actually do ianything in terms of delivering public service. i would focus on those areas. some deep cuts could be made there. host: senator tom coburn had a report the sponsor that was written up in the papers last week about homeland security grants, that it has ballooned since the 9/11 attacks. if you're looking at city that have made up and plausible scenarios for terrorist attacks. room to cut? guest: i think so. i'm not an expert in common security, but i am familiar with it. i agree with the federal government starts giving out grants like this, there's lots of room for abuse and made rules and made up responsibilities just try to get federal money. that probably has taken place to some extent in that area. i would take a hard look. host: your thoughts? gu

gao has done justice. i look at low performing programs. there's a number of evaluations of programs that say are they actually achieving results are intended to do to achieve in many studies have been done showing that programs don't do anything in terms of delivering public service. so i think those are the areas i focus the attention on. this antique has achieved. >> host: senator coburn had to report the papers last week's about homeland security grants that the land since the 9/11 attacks. you're looking at cities that have made a plausible scenarios for terrorist attacks. brenda cut? >> guest: i'm not an expert in the homeland security area, but i'm agree that when the government gives out grants like this, there's lots of room for abuse in made-up roles and responsibilities to get federal money. i think that's taken place to some extent and i would make a hard look at cutting up that. >> host: what are you hearing here? >> guest: no one can disagree with the idea we had to make sure the government has low performing programs. i give

them for commissioner mcdowell, also from the work of the working government spectrum working -- the gao recently reported that -- [inaudible] exclusively or predominantly used by federal government is its highest, and given federal agencies budgets many of these systems are not up-to-date and thus operate individually. would you discuss whether or not some of the federal uses could be served by commercial mobile private providers and how the federal spectrum could be operated more efficiently? so commercial also be -- government use and how would be most sufficient. >> this is something i've been talking about for years actually as the potential for off the shelf private sector solutions, including with a nationwide public safety network. i think it's going to have to be a must, 7 billion isn't going to cover it as the statute calls for. you are going to have to have off private sector technologies to help. but we don't know how to efficiently federal government is using spectrum. i think we can safely assume, however, that it's not using it terribly efficiently. and that's what i think

gao-13-74, older americans act, to improve target and to meet equity. the older americans act was passed, to buy services to older adults and help them remain in their homes and communities, and provides very important services. title 3, provides support services like transportation and home delivered meals. title 3 provides care giver support. and the title 7, it provides protection activities to protect the rights of all vulnerable elderly people. in fiscal 2012, the title three had about $1.36 billion. title 7, $22 million. obviously, with the fiscal cliff discussions, these are sort of rounding errors. but as i am sure you all know, these are services the targeted community depends heavily on. and we know america is aging. america is getting older every day. i think 10,000 people retire every day. by 2030 is as -- it is estimated 20% of the population will be aged 65 and over. this really targets services to an expanding population. next slide, please. the current funding formula for the older americans act, it is primarily based on age before title

according to the gao on well over one billion wasted on the antifederal drug campaign [inaudible] appeared to make it worse. drug testing may be needed in the effort to keep professional sports more drug free and fair. testing elite athletes will not prevent drug use among teens. if congress things kids using it is a problem do something about it. notion of hgh testing testing in professional sports will track l down causing them to be drug free is not only naive. it may send a message you need too use drugs to succeed. programs that work are available because congress approved but not appropriate funds who would like to give our athletes in the programs back to the federal government so schools can use them. thank you. thank you for inviting us. congressmen, cummings i name mike. we have been around for five years. more than that i come from a different place here today. i'm recovering addict in clean 40 years and also a competitive marathon runner. proud to say i've run the boston marathon eight years out of the last ten. i work with kids every day. i love sports, i love working with kid

significantly worse this year than it did last year, we got criticism last year from outside experts, the gao and the way that we model claims in our actuary. we went back and corrected our actuary to change the way we model and that alone, that change alone subtracted $13 million from the value of the fund. so i'm not going to sit here and say we have been perfect in the way that we looked at the fund or the way we model that. and one of my responsibilities is to continue to make changes to get us an accurate a picture as we possibly can. >> let me ask a question. as we look forward in terms of the health of the fund, and i would assume it would be explicitly in the model about unemployment rates going forward and what unemployment rate are you assuming over the next year or so because it direct lee affected payment. >> absolutely. one of the important changes we made to the model this year, not to get too wonky here, is to go to something called stochastic modeling. one of the criticisms is the way the model worked was we chose one path and modeled based model based on that. state-of-the-ar

i also commissioned a gao report that was completed in 2006, and that report noted the significant progress that had been made by the state department in building secure embassies in a cost efficient manner. it recommended that the state department develop a comprehensive facilities plan to more closely track costs and results. working with former secretary of state powell, we initially were successful in getting extra money to accelerate the embassy construction program. but in my view funds for this purpose have never caught up to the threats faced by our diplomats in the post-9/11 world. there have been suggestions that cost considerations contributed to the inadequate protection in benghazi. last week as preparations for this hearing were getting under way, the state department announced it would seek $1.4 billion in the 2013 budget for an increased security proposal based on recent review of the worldwide security posture. i am pleased to see the proposal notes, quote: we must insure we strike the right balance between security and engagement, end of quote. i'll be interested to hear f

the gao report makes clear that numerous mifns exist holding the 166 detainees who maintain much in environmenthat meets the national security requirements. u.s. prisons already hold 373 prisoners convicted of terrorism. that's here in the united states. the political will is a whole another question she brings up. can this ever get through the house? >> it will never get through the house. don't forget, president obama this week promised to veto the entire defense authorization bill. that means everything, soldier pay, bomber fuel, tank maintenance, he promised to veto everything unless these prisoners are allowed to be brought into the united states. that's crazy priorities. this administration and this justice department, in particular, is on a crusade to implement this radical normalization of terror behavior by putting them into the civil justice system. it's because we have a justice department full of people who used to work for al qaeda terrorists and their lawyer is eric holder at the justice department. >> we will wrap it up on that note. we appreciate you being here this morning. >>

gao done a number of studies across a number of areas including administration of justice. i would look at low-performing programs. there have been a number of evaluations of programs that say, are they actually achieving the results they're intended to do achieve? and many studies have been done showing they, some programs actually don't do anything in terms of delivering public services. so i think those are the areas i would focus the attention on. and there are some deep cuts that could be achieved there. >> host: senator coburn had a report that he sponsored. it was written up in the papers last week about homeland security grants, that really ballooned since the 9/11 attacks. and you're looking at cities that have made up implausible scenarios for terrorist attacks. room to cut? >> guest: i think so, yeah. i'm not an expert in the homeland security area but i'm familiar with the general point and i agree when the federal government starts giving out grants like this, there's lots of room for abuse and made-up roles and made-up responsibilities to try to get federal mo