omb re al omb re. he just finished a film called latie on youth. he is a father and his 2 children are here. daniel and elma and his daughter in law and megan m burns and suggested we contact him. we are so happy to have you here and look forward to hearing your address. >> good morning ladies and gentlemen. you know i got to share this with you. i know how to drive a tractor. don't forget what you come from. culture cures. it's like coming back to our mom. i want to first and formost jeff adachi, thank you for the opportunity. patty lee. and sury to all the students. can i see the hands of the high school students? you know what i like about that? mihose means my children. look where you are sitting. in the front. i did a presentation for 2 thousand students and they were 25 hundred chairs. where do you think they sat? it breaks my heart. they sat in the back. i had all the ushers remove the first 5 hundred chairs and we started getting closer. how does it feel to be in the front? if you see yourself at second best, how do you think people are goi

trasbordador espacial ,esta noche despega boxeo telemundo con una pelea por por el campeonato latino de la omba los cuadrilateros el mexico america america santos enfrentandos e a jesus pabon aqui tenemos la palabra de santos... pues no se la dedico a nadie en especifico simplemente se la dedico a la gente mexicana que me brinde su apoyo vengo listo y preparado para darles una pelea fuerte y exsitante.. asi que ya saben en unos momentos mas boxeo telemundo ford no se lo pieda una gran pelea ya volvemos con ustedes.... cu --la dieta mas efectiva..... cu --asi llegamos al final de nuestro programa. --no se pierda el lunes, noticiero telemundo 48 a las 6 de la tarde . --me despido...soy blanca garza, que descanse, buenas noches y feliz fin de semana.

omb has issued a letter saying that we intend to fund number six. so if there's any hesitancy boy the contractor, they've got us and omb saying we intend to fund number six. so you have extra insurance, we're going to do that. >> i'm glad to hear that. i still think a two-year delay in the overall acquisition is going to end up costing us more, but that's a discussion we can continue. >> yes, and if i might, senator. >> yes. >> it's not a delay caused by this. it is that the acquisition, the construct of these cutters, their missions have expanded, and so their actual construction is taking longer than was originally predicted. >> okay. thank you. i'm going to submit the rest of my questions. i regret we didn't get into air cargo security given the yemen package plot. there's so many issues, but i do want to allow time -- >> thanks, senator collins. senator mccaskill. >> thank you both to the chairman and ranking member. let me start with our excited i get when i see an ita machine. >> or when it sees you? >> right. because i get to go through fairl

the director of omb used to be a staffer on the house budget committee. he had done a good job of making sure we are fully engaged in this process. i hope that will continue. >> one of the most controversial parts of the seven months a continuing resolution that was that word the writers -- riders that dealt with planned parenthood. are these poison pills that will cause the government to shut down? >> senate democrats have said that these riders are un acceptable. they are tried to pass social policy on the guise of fiscal responsibility. these are not items that will help reduce the deficit. these are hot-button issues like planned parenthood and like some of the changes they made to environmental protection. close to home, they eliminated funding to implement the president also proposal to help clean up the chesapeake bay. -- and with the president's proposal to help clean up chesapeake bay. those items, which are social engineering under the guise of budget cutting and is our responsibility are going to be unacceptable on the senate side. the majority

the exact point that i made to the omb director yesterday.ave to be able to move past the rhetoric which is have a discussion on policy. let me ask you a specific question on math which that i've heard the term sustainable deficit. i've heard you talk about trying to stabilize it. 3% of gdp is not the critical number. it's the ratio that's more important. which is the ratio between the size of the debt, excuse me be more clear the size of the deficit, and the growth of the gdp. i'm concerned that over all of this budget with the exception of 2014 and 2015, even though you do manage to get the deficit to around 3% on an annual basis, you are only at gdp of two and a half, 2.69. every year but two, the budget deficit in larger than the growth as the overall economy. which to me means as a percentage of gpd, our budget continues to grow. i know i'm out of time. i'm curious to your hear your thoughts on that. : congress has to legislate and in our country have given how divided the country it is it is going to take up houses, both parties to legi

and you're to recommend to omb changes to suspension debarment system and its rules.that's what you are the ifdc chairman, is that correct? >> that's correct, sir. >> that did what the law is. you you were using the term volunteers. i didn't know the government had volunteers. what a misnomer. these are government-paid employees that come together to assist in this effort but it is under your responsibility. i would have thought the answer to it was, it's my responsibility. i didn't give it the highest priority. i depended on other agencies and i didn't get them together the way i needed to. and that would have been the answer. i would have said, okay, everybody screws up but you tried to pass the buck on. i was looking at mr. gordon. maybe i'm unfair here, but mr. gordon, i would have been pained with that answer. i want to know were you satisfied with the answer you heard from mr. blalock? >> we do have a role at omb in the isdc and i think we need to work, i take it as a commitment we need to work to get that report in, sir. >> with mr. rind any's response and mr.

i have been at omb for eight weeks and i have not looked at it yet.we will continue to work with the state and review it. >> great, the president's budget i am concerned about the investment in r &d. the president's budget proposes to invest $148 billion in r &d and enter the efficiency -- and energy efficiency and key research. the republican spending plan would slash r &d. there are also robust investments in the national institutes of health where they were to cure cancer and other diseases. claimed the lives of millions of americans every year the gop spending plan on the floor today cuts the nih budget by about $1 billion. medical research has proven to expand life expectancy from 50 years in 1911 to nearly eight years more in 2011. can you explain the approach taken with r &d and basic research in the president's plan? some call it spending and others call it investing. >> i am happy to. we have taken a close look at the r &d budget and look beyond traditional boundaries. biomedical research is important that we agree with that. we have an incre

now for the remarks from the omb director on the budget. we will show you as much as we can until the republicans respond to start shortly. >> thank you for coming. we of the chairman of the council of economic advisers who will go over the economic assumptions and take questions. then jack will do the q&a. austan? >> as appealing to the budget, we thought we would just get the assumptions out of the way. i will make four short points. the forecast that we used has to be locked in for planning purposes as of mid-november last year. this predates the tax deal. as you know, many of the private forecasters up to their forecast based on what was in the tax deal and most of that is not in the forecast. number two, real gdp growth on a year-over-year basis the administration is forecasting 2.7% in 2011, 3.6% in 2012, 4.4% in 2013. the growth rate in 2011 is a fair bit lower than the consensus of private forecasters surveyed by the blue chip or the survey of professional forecasters. over the long run, we anticipate catching back up the potential

preserve, will be well served at having you with the head of omb. while we are still reviewing some of the details, i want to commend the president for putting forth a budget that reduces our deficit will also investing in our future. this is a tough love budget. it cuts non-security discretionary spending by $400 billion, taking that category of spending to the lowest share of gdp since the eisenhower administration. and starting this year, it steadily decrease the deficit and bring the budget to balance by the year 2017. but the president's budget cuts the deficit will making critical investments in areas like education, clean energy, infrastructure, and scientific innovation. last week the chairman of the federal reserve, ben bernanke, testified before this committee about the importance of targeted national investments to grow the economy and keep america competitive. he highlighted the need for policies to foster economic growth, by encouraging investments in the skills of our work force as well as machinery and equipment, by promoting research

>> there are certain barriers that we have recommended that omb focused on. for example they are stakeholder interests in some of these buildings and properties that need to be dealt with be able to do it. there are some legal requirements that are in place but none of these barriers are insurmountable and our point is that you need to aggressively identify them. they are different for each property as you might imagine that they need to be dealt with on a more concerted aggressive basis. >> what is the hesitancy towards this aggressive action? >> yes, to be honest with you i'm not quite sure other than it takes a lot of hard work and effort to be able to go forward on these initiatives. we have been pushing for plans to be developed to be able to do that and we are pleased they are getting better data and they are also what the situation is like but actually implementing a lot of these things appears to be more typical. to be honest with you i'm not quite sure exactly what the reason is. >> any concern about any impropriety and stakeholder issues that go bey

the president was gracious with his time, with people from omb, treasury, a good group of folks. basically, if i could fragment at the highest level, we talked about competitiveness. much like you heard in the state of the and and, and what are the elements of competitiveness. we had a very good dialogue, a lot of interaction, a lot of different points of view. we expressed our verse. there were very responsive. we had three big points, not tax, competitive corporate tax structure, trade, which in our industry nearly 70% of our industry is outside of the united states and the growth is outside of the united states, and then we got into ways of, ok, but dressing the corporate tax rate as long as it was deficit neutral, and then michael articulate it a proposal whereby they could address $1 trillion of productivity or efficiency that exists within the government which is basically using what we have all dawn over the past 10 years -- what we have all done of the past 10 years. it was a basic business practice we have all done to improve the competitiveness of our own companies. mos

we pushed omb to come up with a plan on it also. there's rules in the budget process that complicate the lease versus buy decision which we recommended those be dealt with as well. >> yeah. >> we think it's basically a management responsibility >> it should be done. >> it should be done. >> use the resources. >> yes, definitely. >> thank you, my time it up. the gentleman from massachusetts, mr. tyranny for five minutes. >> thanks to members of the panel for your testimony today. this committee has conducted a lot of oversight about both iraq and afghanistan. last year, in fact, when i was chairman of the subcommittee on national security foreign policy we uncovered evidence of the trucking contractors were paying warlords insurgents billions of dollars for so-called protection and we talk about the contractor in $3 billion in fuel contractors that are going to companies that the state department and the department of defense knew nothing about. so my question mr. dodaro, do you think we have to have some improvements in the contract

we worked carefully with omb and they fully support this proposal as far as shifting the funds. >> i would be happy to follow up on that with you, so thanks. >> admiral, mr. secretary, i'm sorry i missed the last hour of testimony. mr. secretary, my colleague from san diego, you were answering her questions and talked about the defense budget and the total layouts and now this is at the lowest point since the 1990's. there is so little being spent on defense. if you don't give this a top line or ask for what it would cost to erase all risk, literally, or as much risk as possible, we have no baseline to cut defense from or add. the numbers we are using our lib numbers. if you were to take away 100% of risk using your own threat assessment tools and analysis, what would that funding be? what would you ask for? >> i have only half jokingly said in meetings in the department is if we had a $1 trillion budget, we would have on funded requirements. these services could come up with a list of things they really need. the budget that we have provided at $553 billion for fy 2012 mitigates ris

did you agree with the omb recommendation, with the visa security program? >> if i might, representative, the budget request is not yet out. it will be out on monday. my first hearing is next thursday, yes, next thursday. i think, if i might ask your fore barns for a response at that time. >> okay. i would like to keep in touch with you on this. >> duly noted. >> thank you. one more question. as you are aware, terrorists involved in 1993 and 2001 world trade center attacks entered the united states on student visas, later violating their terms. they have been concerned there are problems in the issue process. how concerned are you about to fraudulent use of student visas or any visas for that matter? >> do you want me to take it? >> we look at all kinds of visas. you are right. there is a hisry with student visas. there's an ongoing interest in student visas. we have built in extra protections fr student visas with monitoring the countries that sponsor those students. >> i would like to get to you. i have recommendations of my own as well. >> very happy to d

the debt just wit -- according to omb. anyone who looks at our budget situation, whether it is the congressional budget office, the gao, the federal reserve, omb, treasury, they all speak to the fact that we are on this enormous task. we have this enormous challenge. to echo maya's point, i found it remarkable that for the past three years, we had seen all this debate about how to increase spending. now, the debate is focused on how to reduce spending, and i would say that is encouraging in this environment, but i do not want to say there still is not an extraordinary challenge in terms of getting the cr done. the real issue will not be the long term. it is going to be short-term because i doubt the two bodies can work out a long-term cr, but i doubt that your bodies can work that out. probably migrate to how we do a short term cr? the speaker has been very clear that he does not want to shut down the government. what he wants to do is not just continue funding at the current level, which, while most of the focus is on a s

host: omb director jack lew before the house committee yesterday. what did you hear from him? guest: he acknowledged that this was an austere budget, that there were painful choices, that the president had a personal affinity for community services, block grant funding that he had to cut in half, and that was very hard for him to do. but the president wanted to be taken seriously about trying to get the deficit under control while really trying to make sure that he focused on innovation, education, winning in the future -- winning the future, and not harming -- and touching, basically, social security and health care. host: one last question, cameron hooper. >> the president's budget does not appear to address the projected medicaid, medicare, or social security overlap. do you have any idea what the funding for these programs will be resolved? guest: thank you for asking that question, cameron. first, i want to tell you that the social security trust fund is not what is driving our deficit. the social security trust fund is solvent, perfect until 2037, and because of people l

did you agree with the omb recommendation, with the visa security program? >> if i might, representative, the budget request is not yet out. it will be out on monday. my first hearing is next thursday, yes, next thursday. i think, if i might ask your fore barns for a response at that time. >> okay. i would like to keep in touch with you on this. >> duly noted. >> thank you. one more question. as you are aware, terrorists involved in 1993 and 2001 world trade center attacks entered the united states on student visas, later violating their terms. they have been concerned there are problems in the issue process. how concerned are you about to fraudulent use of student visas or any visas for that matter? >> do you want me to take it? >> we look at all kinds of visas. you are right. there is a history with student visas. there's an ongoing interest in student visas. we have built in extra protections from student visas with monitoring the countries that sponsor those students. >> i would like to get to you. i have recommendations of my own as well. >> very happy

did you agree with the omb recommendation, with the visa security program? >> if i might, representative, the budget request is not yet out. it will be out on monday. my first hearing is next thursday, yes, next thursday. i think, if i might ask your fore barns for a response at that time. >> okay. i would like to keep in touch with you on this. >> duly noted. >> thank you. one more question. as you are aware, terrorists involved in 1993 and 2001 world trade center attacks entered the united states on student visas, later violating their terms. they have been concerned there are problems in the issue process. how concerned are you about to fraudulent use of student visas or any visas for that matter? >> do you want me to take it? >> we look at all kinds of visas. you are right. there is a history with student visas. there's an ongoing interest in student visas. we have built in extra protections from student visas with monitoring the countries that sponsor those students. >> i would like to get to you. i have recommendations of my own as well. >> very happy

i think the president, i think omb, you know, hundreds of people are working on the budget, and it is possible for them to make reasoned reductions. reductions in the commerce department, for example. ronald reagan who i worked for recommended and tried to get big cuts in the federal department of education on the idea that education should be a local matter, a county, city, state matter, and not have the federal government as involved. those are cuts that we haven't been able to make, and so my challenge to the members is do your jobs. you're paid to make specific cuts within a budget. the problem we have now is that there really is no budget. it's an unlimited credit card they are running up. the severity of the problem for the public, i agree with the sense of the caller that people probably don't get how deep a trouble we're in. that's what i'm testifying on this morning. by the way, i have my testimony is posted on my website. >> host: you can watch the hearing at ten o'clock live on c-span. ron, independent, good morning. >> caller: good morning. i have a couple quick ones. one,

[applause] >> the omb will hold the budget proposals. hear from director and chairman of the council of economic advisers. that is live monday at 12:15 p.m. eastern on c-span2. today in washington, a political conservative action conference continues to hold its meeting. this will be its last day. before we get the results of the straw poll, we're looking back at some of the speeches made this week, including from tim pawlenty, ron paul, and it mitt romney. [captions copyright national cable satellite corp. 2011] [captioning performed by national captioning institute] >> thank you. i appreciate it. thank you very much. i want to >> thanks a lot, i appreciate it. sean, i know this crowd. i want to ask you one big favor, bring the budget ax and swing it hard, baby. iet ax and swing it hard, baby. [applause] i want to give a special cell al to my minnesota college republicans. where are they? [applause] these guys drove over 20 hours in a bus. thank you for coming. [applause] are you fired up and ready to take this country back? [applause]

later today, briefings from the pentagon budget calling for a $3 billion increase from last year, from omb director check live. we will have updates throughout the day. -- jack lew. we will have his remarks starting at 12:15 eastern on c- span2. live coverage of that briefing starting at 12:15 eastern on c- span2. the defense department will offer their briefing on c-span 3. live coverage as secretary gates and others explains the budget, calling for $78 million in reductions, cutting a number .f weapons programs live coverage of that briefing at 2:00 eastern on c-span 3. on this morning's "wash. journal" we spoke about the president's budget request. here is a look. host: more about the budget. merrill goozner is a senior correspondent for "the fiscal times." we sit here on this one day a year, the budget comes up to the hill. what happens next once we see the release, see the large numbers, what happens? guest: the budget is the president's proposal for fiscal year 2012. it actually does not begin until next october. under the theory of how our government operates, the proposal then goes

>> there are certain barriers omb we recommend a o thated tht focus on. there are some legal requirements that are in place. none of these are insurmountable. we need to aggressively identify them. they are different for each property. they need to be dealt with on a more concerted, aggressive basis. >> what is the hesitancy toward this aggressive action from your perspective? >> to be honest, i am not sure. it takes hard work and effort to go forward on these initiatives. we have been pushing for plans to be developed to be able to do that. we are getting better data on what the situation is like. but implementing a lot of these things appears to be more difficult. i am not quite sure what the reason is. >> any concern about any improprieties in stakeholder issues that go beyond simply dragging feet or arguments that we do not have the resources or the time or energy? is there anything that would go beyond that to something else? >> there is nothing. i will go back and checked to make sure my answer is correct. if there are any things of that nature, i w

debt, interest on debt will be much higher than what even though in the inomb and the president -- omb and the president is climbing. -- claiming. we have to see what that looks like before we even begin to write our budget. >> the president is wanting to cut the joint strike fighter. the second engine. is that something you think -- >> people have difference of opinion. i've always taken that position. i have always had that vision -- position. >> i have, too. >> you have praised him for putting a comprehensive and title -- entitlement reform. do you support his particular plan? >> i think his plan can work and would work. it is far better than we are today. i believe that we could achieve greater discretionary spending reductions today than even his plan calls for. i intend to give personal attention to how we work to put our great medicare, social security programs on a sound footing. that needs to be done carefully. we need the input of the president. he cannot just be thrown on the floor. we need to work together to achieve that. i am prepared to do that. >> can you comment on how

. $1.6 trillion according to omb. the debt just went through $14 trillion. i think the debt held by the public is around $9 trillion. i think anybody who looks at our budget situation, whether it's the congressional budget office, the gao, federal reserve, om bhdz, treasury all speak to the fak bare -- so we have an enormous challenge. to echo maya's point i find it remarkable the past two years the discussion was where can we increase spending and seen a remarkable change in the debate and not just from republicans. now it's focused on how do we reduce spending? that is encouraging i guess i would say in this environment. but i don't want to say there isn't still an extraordinary challenge in getting the cr done. i think the real issue before the house is not the long-term cr but a short-term cr probably because i doubt the two bodies can work out a long-term cr. the house passed a long-term cr but i doubt the two bodies can work that out. so the discussions will probably migrate to how do we do a short-term cr. i think the speaker has been very clear that

it is in review right now at the omb, because as you recognize, representative, borders are law enforcement jurisdictions and you've got to protect the borders from that regard, but they are also huge trade jurisdictions. and you've got to be able to move the legitimate trade and commerce. we are very much in favor of looking at ways to preclear certain things before they -- cargo, for example, before it gets to the border so that we can relieve the pressure on the lines and the technology for being able to do that kind of thing gets better all the time. and so that'sone of the things we'll be, i'm sure, working on and implementing over the coming months and years. >> thank you i know my time's expired, but i would also point out, inregards to the tides list, without quantifying it, there are much higher hits. much higher. >> congressman, i'd just say, i've been working extremely closely, going up to ottawa since 2005. it is a very different set of challenges on that border, but it is one that we are acutely engaged on with the canadians who are an excellent partner in information sharing a

i think omb has hundreds of people working on the budget.t is possible for them to make reasoned reductions. reductions in the commerce department, for example. ronald reagan recommended and try to get big cuts in the federal department of education on the idea that education should be a local matter of the county, city, and states, and not have the federal government involved. those are cuts we have not been able to make. my challenge to the members, do your jobs. the problem we have now is that there is no budget. it is an unlimited credit card they have been running up. i agree with the sense of the caller that people don't guess how deep the trouble we're in. my testimony is posted on my website, gropac,com. host: cold snap, new jersey -- colts neck, new jersey. caller: i am disgusted at this point if that democrats and republicans when they are asked a question which specific cuts you make, none of them are willing to listen. nothing tangible in the cuts. should i take them one at a time? host: go ahead with this one. guest: i agree. i

they will be hearing from of the omb director. that is on 10:00 a.m. on c-span 3. then in the senate finance committee, live at c-span 3 at 2:30 p.m. eastern time, hhs secretary kathleen sebelius will testify about her agency's budget. and if our viewers are interested we will cover house ways and means. they will talk to tim geithner, the treasury secretary. said a budget committee will be there. if you are interested, go to our website, c-span.org, for more information when those are slated to air. i wanted to show our viewers the "wall street journal" headline about all of this. if i can find it here -- let me paraphrase. president obama's budget proposal is a challenge to the gop. i am just wondering, because it does not exclude it entitlement reform. guest: i think what the president has tried to do is perhaps laid down a marker for the left engine of the budget debate we will see starting this morning in the house for 2011. the republicans in the house decided to try to cut $100 billion from the request the president put forward just a year ago, for the curre

debt, interest on debt will be much higher than what even though in the inomb and the president -- omb and the president is climbing. >> the president is wanting to cut the joint strike fighter. is that something you think -- >> people have difference of opinion. i've always taken that position. i have always had that vision -- position. >> you have praised him for putting a comprehensive and title -- entitlement reform. >> i think his plan can work and would work. it is far better than we are today. i believe that we could achieve greater discretionary spending reductions today than even his plan calls for. i intend to give personal attention to how we work to put our great medicare, social security programs on a sound footing. that needs to be done carefully. we need the input of the president. he cannot just be thrown on the floor. we need to work together to achieve that. i am prepared to do that. >> can you comment on how coherent the republican proposal actually is? >> cut, which cut spending and grow the economy. next question. >> you of referred to this not having any specific

for the first time, omb is presenting our war funding as they do with the department of defense in a separate account called oko which is short for the overseas contingency operations. this will allow for a full transparency and be a unified approach for the costs we believe are not part of our core budget. the state and usaid's oco request for 2012 is $8.7 billion which i'll come back to in greater detail in a moment. finally, i'm sure some of you will be confused with the comparison to last year's budget. i assure you, you are not alone. here's why. congress hasn't finalized funding levels for 2011. instead, we're operating under a continuing resolution, basically an extension of our 2010 operating levels. to complicate things even further, in 2011 there were a number of supplemental spending bills and adjustments -- in 2010. so to anchor our conversation today, we've created a single chart that lays out the relevant points of comparison between 2010, '11 and '12. our core 2012 request of $47 billion supports the diplomatic and development experts in 190 countries. it represents a

for the first time a omb is presenting our war funding as they do with the department of defense and a separate account called oh, which is short for the contingency operation. this will allow for a full, transparency and a unified approach for a cost we believe are not part of our core budget. estate and usaid request for 2012 is $8.7 billion. i will come back into it in greater detail in a moment. finally, i am sure some of you will be confused with the comparison to last years budget. i assure you you are not alone. here is why. congress has finalized 2000. we are operating under a continuing resolution basically an extension of art 2010 operating levels. to complicate things even further in 2010, or a number of supplemental spending bills and adjustments. said to anchor our conversation today we have created a single chart that lays out the relevant points of comparisons between 2010, 11 and 12. our core 2012 request for $47 billion supports our diplomatic and development in 190 countries. it represents a 1% increase over are comparable 2010 levels, less than the rate of inflatio

senator portman was, of course, at omb which is a heabeat of federal money management and member of the ways and means committee in the house for a number of years. senator toomey on the budget committee in the house for a number of years and a businessman. senator johnson, who is not with us now, is a full-time career businessman and got elected to the senate. i think they all three are going to add some really exrience and perspective to our debate. senator portman, thank you for being with us. i yield my time to you first rod. >> thank you, senator sessions. i appreciate your yielding your time. we've got all got four or five things going aonce so i'll have to step out after my questions. i enjoyed the testimony. we need to get michael grats here next time so he can talk about his ideas. i did read his book. i'm intrigued by his concepts. i will tell you i think in the politics of today and with the urgency of addressing our fiscal crisis, i'm not sure we're ready to make that leap. i will also say to the chairman's question that one of the thoughts that came up in relation to the gr

senator portman was, of course, at omb which is a heartbeat of federal money management and member of the ways and means committee in the house for a number of years. senator toomey on the budget committee in the house for a numb of years and a businessman. senator johnson, who is not with us now, is a full-tim career businessman and got elected to the senate. i think they all three are going to add some really experience and perspective to our debate. senator portman, thank you for being with us. i yield my time to you first round. >> thank you, senator sessions. i appreciate your yieldg your time. we've got all got four or five things going aonce so i'll have to step out after my questions. i enjoyed the testimony. we need to get michael grats here next time so he can talk about his ideas. i did read his book. i'm intrigued by his concepts. i will tell you i think in the politics of today and with the urgency of addressing our fiscal crisis, i'm not sure we're ready to make thatleap. i will also say to the chairman's question that one of the thoughts that came up in relation to the

would say is for us in the process of to double the number budget for 2012 and in the back-and-forth of omb, the office of management and budget in that process, the issues around evidence and effectiveness and information about the effectiveness of programs were very, very prominent in the exchanges and developing the budget. at the same time, is certainly the case for a large number of programs there are always places where you wish you knew more, and where there is some things you can tell from murderous experimentation and areas where there isn't any there is some where the data helps you tell a story and there's some where the data is thinner than you would like, and i do think the overall -- one of the overall dillinger is before us is how we improve the process over time. >> it can be a more informed structure. >> isn't that true of the defense budget as well, should we be asking the same question? over there, you don't have to answer that. okay we are going to take a few more stacks up here. tell me your questions and then we will of the panelists have kind of final remarks. we'll s

in other words, some discipline on the budgeting process on omb to have some kind of mechanism to give it some teeth. i have written down several -- i think, in terms of this problem as one where you should begin today, making small decisions. they are not really small, but do the things that you can. i will list several things we have talked about. one is i think the fed should wind down its buying of treasury bonds. this is a huge problem where the fed is buying a long-term debt and their foreshortening the maturity of our national debt. that puts us at risk. second, treasury should be issuing more long-term debt. we have to get our debt maturity longer to be prepared for what comes in the future. third, the directed base line, in order to open a window for tax reform. right now the way congress procedures work is not credible to embark on tax reform because you have to soak up making permanent the existing rates. alternative minimum tax, for example, expires. yet everyone knows it is going to have to be packed into the future. if that should not be part of the baseline, the cost of

i think peter stockman from the reagan years, the omb director, could help them there. in the area of social structure, i wish he would speak with naomi klein. and the one person that has done probably more than most presidents in the modern era to effect change, ralph nader. i think ralph was almost single- handedly responsible for the creation of the epa. i think obama has lost his way. finally, in the area of taxation, i hope it would sit down with them and respect warren buffett and let him hear and understand that the current tax inequality and raising taxes on the upper levels of folks would not be any sort of drag on our economy. and that it is fundamentally fair. we have a revenue shortage in our country. host: the president giving warren buffett a presidential medal of freedom. i think you mean david stockman. caller: he shows that supply- side economics failed because it called for cutting taxes and cutting spending. host: one of our new twitter followers. president obama should meet with the desmond tutu. stephen hayes has this in "the weekly standard", admin

and we have a problem, as you know, this is both cbo and omb don't score it the way i think it should be scored. and the way most of us really presumptuously think. i don't have time here. my time is expiring. i would like you and most of us really to light a fire under the work care reform and give yourself benchmarks and data sets and points and accomplishments and what did they accomplish by a certain period of time, et cetera? i'm just giving you advance notice. this is something that i can be focused on very heavily. because i want this to work, i think most people want this to work and it's delivery assistance reform. after a while it's going to pay huge dividends and that's a basic way over time to address the medicare trust fund cost over run with that. so i urge -- and time's up. i urge you -- i will be asking you a lot about that in the future. >> thank you. >> senator hatch. >> thank you, mr. chairman. madame secretary, i think we need to find a responsible way to pay the sgr and make it permanent. i think we should have fixed it with all of the medicare cuts that we have i

in my omb assignment i was the first critic of congressional earmarks.ducing them. first to rail and first to fail. they should be stopped, but in the cause of solvency they are a trifle. talking much more about them trivializes what needs to be done. it misleads federal citizens to believe easy answers are available. in this room we know how hard the answers are that means nothing. not even the first and most important mission of government, our national security can get a free pass. i served in two administrations that elevated peace through strength. it has served america with the success. if our nation goes over we will not have much strength and will not have peace. we are borrowing the entire defense budget from foreign investors. within a few years we will be spending more on interest payments and national security. that is not a robust strategy. i personally favor restoring and pounded power to the presidency on an emergency basis. having used this authority with the vigor, i can testify to its effectiveness. you would be amazed at how much gover

i have to tell you that whenever we had to argue for our budget, we first went to the director of omb would sit there and make our arguments to him. and then we would have a special meeting with the president to make their arguments to him. and then i would always call him on christmas eve and ask him to add a little bit more. it is christmas and he did. [laughter] we had a special relationship. [applause] my message this evening is simple and i am very proud to be a member of the u.s. global leadership coalition where we were bipartisan even before it was cool. [laughter] not only are we bipartisan, we come from some many different sectors of society. we include people who have served in and outside the government and we have young members mixed with the gray hair and a couple of bald heads. yet, we are united by a common set of principles. first, despite the many prophets of doom and decline, american leadership remains today a pillar of international security, justice, and peace. [applause] second, i believe we will only be able to maintain our leadership if we have adequate resour

that's we're at 11% according to omb on deficits. when you look at the president's budget, again his own data, he doesn't really close the gap. revenues go up and spending go up. the issue in my mind comes down to getting spending under the control. you know, other people are advocating revenues need to be part of the deal. in the end the issue is focused in terms of the debt and problems looking out is getting the spending line under control. you cannot fix this problem unless you get the spending line under control. if you don't get the spending line under control, what's going to happen is that those will be most affected by it are those that depend on the government the most. when the government loses ability to fund food stamps, medicare, social security, that will eventually occur if we do not tackle this problem. the challenge is to correct our fiscal situation for two reasons. one, we'll get economic growth, more certainty, take away certainty, show that we've got our fiscal situation under control. increase economic growth,

senator portman was, of course, at omb which is a heartbeat of federal money management and member of the ways and means committee in the house for a number of years. senator toomey on the budget committee in the house for a number of years and a businessman. senator johnson, who is not with us now, is a full-time career businessman and got elected to the senate. i think they all three are going to add some really experience and perspective to our debate. senator portman, thank you for being with us. i yield my time to you first round. >> thank you, senator sessions. i appreciate your yielding your time. we've got all got four or five things going at once so i'll have to step out after my questions. i enjoyed the testimony. we need to get michael grats here next time so he can talk about his ideas. i did read his book. i'm intrigued by his concepts. i will tell you i think in the politics of today and with the urgency of addressing our fiscal crisis, i'm not sure we're ready to make that leap. i will also say to the chairman's question that one of the thoughts that came up in relation

>> well, look, i know that not long ago we i saw parts of that list, i know omb is taking a look at that. there's broad agreement that we have to change the way washington works particularly as it relates to spending. we have to do so in a way that protects important investments so that we can win the future. so i think the president looks forward to working with and working with republicans and other democrats to make progress on these these issues. >> one question on egypt, please. the israeli defense minister is coming here later today to meet with secretary clinton and secretary gates. can you say what the significance of that meeting is? is. >> i don't know the latter to that question. i think he's in town for some regularly-scheduled meetings. i think we'll have a readout on some of those discussions afterwards. >> is it fair to say you think he will be pushing the message about concerns of mubarak stepping down too quickly? >> i'm not going to presume what somebody from another government might say to us. that's not my role. >> okay, one on the republican meeting and egypt. what s

and we have a problem, as you know, and that is both cbo and omb don't score it the way i think it should be scored and the way most of us really presumptuously understand this stuff think it should be scored. and so i just -- i have time here. my time's expiring. but i would like you and i think i speak for most, light a fire under all those working on delivery system reform and give yourself benchmarks. give yourself data sets and points and so forth. and accomplishment. what do you accomplish by a certain period of time, et cetera. because this, i'm just giving you advanced notice this is something i'm going to be focused on very heavily because i want this to work. i think most people want this to work. delivery assistance reform. after a while it's going to pay huge dividends. and that's a basic way over time to address the medicare trust fund costs overrun with that. so i urge -- time's up. i urge you -- i will be asking a lot about that in the future. >> thank you. >> senator hatch? >> thank you, mr. chairman. madame secretary, i think we need to find a responsible way to pay the s