that was the point i believe of the omb director's remarks was don't think you can somehow make this work in a way that is not going have a huge negative impact on her national security. that's the main point that is been made by countless witnesses and folks in a very bipartisan way. i don't think there's any discredit whatsoever on the. even if you think that savings can be found in the defense budget, and i do, this is not the way to do. it's going to be a $57 billion cut at the absolute last minute. the middle of fiscal year 15 after all consequence was done to try to set it up. it's also across the border every program had to be cut by the same amount for the most part. so the very limit in terms of any flexibility into handling this. so we have established beyond a shadow of a doubt that this is not good policy and no one has claimed that it is. as for the issue that somehow the pentagon and the white house has got nothing to plan for it, i don't think that's at all accurate. we had undersecretary ash carter hear about a month ago. he went for about, i've, six minutes chapter a

omb has a report due on sequester. they also have other reports, but the one due this week frank and i hope we have a lot of good detail for you, but that's been delayed. cbo reports invaluable. senator harkin has reports, the top appropriator for the bill that funds the departments of education, health, and labor, and he also is on the committee that oversees him. he is a real expertise. looking at state stories, go there. i forgot to put it, and a lot of think tanks in town have people to look at it. it's a great story to localize. if you take one of the most important federal government does in your community, and then you ask the people, the agency managers how they plan to do those things next year, you got a story. they will have to tell you they don't know. we don't know the budget or how many people we can hire or if we'll get cut. we don't know if we can start new projects. really easy ways, i just got this from google. if you're interested in the topic, people have been coming up to the hill. this is testimon

>> omb will actually decide. they had a report where they said it will be 94 billion, so these numbers are somewhat flexible. i think we have reviewed these numbers. there have been good reports done by outsiders i would recommend, and we actually do percent until they start adding hard numbers. you can save a lot of trouble. >> when your lawmakers are telling you have to be careful, they say different numbers, and often it is colored by what the position has to be. >> i want to get one more question. >> i am a video producer, so i am wondering who do you see on the front lines? weather is the type of stafford, and who is really on the front line affected by this, whether it would calm public outcry or be part of the problem? >> i do not know one region you cover, but to figure out the people who run some of the biggest social problems and see if they would talk to you and run through the project and see what they are going to be able to finish. it is an incredible management challenge. it is a mess, so to find s

the congressional budget office, omb, all of them will say if we don't get a handle on our entitlements not going to resolve the deficit situation. so that's why we really ought to be focused on this, and the president has just been, you know, awol on this, has been unable to come forward with a solution. and again, we really need -- we all realize the severity and you are -- urgency of this situation. i wish the white house would. >> you keep saying the president won't come to the table. if the president wins the re-election, is this going to be an ongoing theme? how are you going get things done? >> the election is going to be dispositive on the issue of taxes. mitt romney is not for taxes going up. he's for tax reform, simplifying the code, and bring down rates. the president has insisted the only way he'll go forward is to raise taxes. the impact of raising taxes falls on small business people, our job creators. if we want to see jobs and investment return, we don't want to see taxes go up on those individuals because that's who we need as an economic engine. i do think going forwar

bush omb director. he's a budget guy. he knows the innings and outs of the numbers. this is what we need. in an economic crisis. and it can probably deliver ohio, which you can't win without ohio. the downside to him, and again, life is about trade-offs there it no perfect candidate. the downside to him he's been a -- he's a good man, a decent man and very smart. but sort of a vanilla ice cream. do you want two scoops of vanilla ice cream on your ticket. especially i'm saying it close to governor romney yesterday especially if barack obama threw the hail mary and dumped joe biden and switches out with hillary clinton. those who listen to my radio show know i have been saying this for a long time about the clintons. you know that bill and hillary clinton when they go in to the polling place, both of those levers are going down for romney. [laughter] there is no question about that. i do not think hillary clinton will do it if asked. i think she will politely decline, i think in her case, she has the leverage to turn down the president of the united states, which knob

one of our reporters define storage talking about how omb can decide when they start to apply sequester. it could be in the last quarter of the coming fiscal year before they actually do the cuts as a percentage of a whole which will be more severe. but the gives congress wartime to figure out what to do. it is a tough situation. would you have is both sides are demagoguing the issue. there are both using sequester to try to win an argument trade republicans are saying sequester was the president's idea. it is laughable that either side tries to blame the other because the majority in congress supported the thrust of being part of the budget control act. so there are a lot of things that could transpire or change things. i did a cover story for cq to see what happens when sequester hit. what could happen. the assumption about sequester and anything is that everything stops here. whether you talk about medicare, social security, sequester, everything assumes he will do nothing. between now and when it happens. which never happened. it has never happened that way. they always find a way,

. >>> up next former republican congressman from michigan and served as omb director under presidentgop hopeless and lost, thinks romney-ryan is a fantasy and fraud. we want to flesh a lot of this out because there's more to it than, i don't think he thinks either party is doing that well. as we head to break check out the "squawk box" market indicator. at optionsxpress we're all about options trading. we create easy-to-use, powerful trading tools for all. look at these streaming charts! they're totally customizable and they let you visualize what might happen next. that's genius! we knew you needed a platform that could really help you elevate your trading. so we built it. chances of making this? it's a lot easier to find out if a trade is potentially profitable. just use our trade & probability calculator and there it is. for all the reasons you trade options - from income to risk management to diversification - you'll have the tools to get it done. strategies. chains. positions. we put 'em all on one screen! could we make placing a trade any easier? mmmm...could we? around here, o

authority of the new deputy assistant for national security to take the lead, including working with the omb to come up with the ideology budget. it would also send a message to other parts of the government, including those with diplomatic and military functions, that this is a center of direction of policy that they need to take seriously and to collaborate with. there would also have the lead in the preparation of a strategy report. we concluded this section with proposals for strengthening the state department, the department of defense, and the broadcasting board of governors and their capacity as participants in this process but not the leaders of it. thank you for your attention. >> thank you. i would like to call upon james glassman, a founding director for the george darby bush institute, the think tank at the george w. bush presidential library. he served as undersecretary of state for public diplomacy and public affairs from 2008 to 2009. before that he was chairman of the board of governors which directs, among other things, the voice of america radio. he is the host of ideas and

you can see the omb historical debt levels and then the gao projection. what concerns you most in what we're looking at here? guest: the sudden sharp rise at the end. that is what it is illustrating, the growth of the debt. we used to have big spikes in debt for things like war and recession. the basic problem is we have a fundamental structural deficit between the spending promises and the revenues that we're bringing in. the most alarming thing is that even if we assume a strong economic recovery and a complete withdrawal from overseas operations, that line was still look pretty much the way it does because of the underlying mismatch between spending and revenues. host: good morning from florida. caller: good morning. thank you for c-span. i keep hearing the top 5% are paying 40% of the taxes. what percentage would they have to increase to shrink this debt that leads to the deficit? it is strange when you hear they are paying 40% now. could you get much more out of them to shrink this debt? i know there's a large proportion that is not paying any taxes.

simpson, white house chief of staff, erskine bowles, both by satellite as well as pete domenici and ombrector alice rivlin hearing person. the third forum will be on thursday, september 7 in new york city and will focus on progrowth tax reform and will announce as participants in a couple of panels next week. the fourth and final four and will turn to washington in monday afternoon, october the first at the topic will be health care and entitlement cost control. of course this is the most important and most difficult challenge, but it has to be faced. that is what we scheduled. i briefly, what do we hope to accomplish? simply put and enabling each understand the nation's fiscal crisis inside and outside of washington paper but the average american, especially young people to better understand what is at stake for them if we don't get this right. these are not table stakes. what we do or don't do will affect this country for a long time in the future. we want the media to hold candidates accountable to ask tough questions and follow-up questions when their plans for a sick arithmetic. we

will reduce pressure to raise those dollars by taxes but also to figure out how best presumably with omb how best to use the excess funds to help us in a small way to get back in balance. my time is up. senator collins. >> thank you mr. chairman. administrator, i want to talk to you about the compensation for gsa employees and in particular about the employee award bonuses. the data that we have looked at surprise to me. it told us that more than 40% of gsa employees received compensation in excess of $100,000, that 14 gsa employees receive compensation exceeding $200,000, with a high of $279,352. now, in some cases, this may be warranted. for example, a gsa procurement officer who was deployed to a war zone in iraq or afghanistan clearly gets additional funds, additional compensation and should so. there did seem to be a pattern of extraordinary uncontrolled overtime of employees working in one city but responsible for activities in another city and incurring incredible travel costs and per diem costs, and all of that is cause for concern to me and i want to explore more review. today i

fees to the agencies so that reduces pressure to raise those dollars through taxes but also with the omb also how to use the excess funds to help us to get back to balance. my time is up. >> administrator, what do talk about the conversation of gsa employees in the incentives and bonuses. the data we look negative told us more than 40% recede compensation in excess of $100,000 and exceeding $2,000 with 279,000. in some cases it could be warranted. and should sell. with extraordinary and uncontrolled over time of the employees working in one city and day currying incredible travel cost follows cause for concern. it is my and stan dain four fy 201-1159 tsa employees deceived multiple awards totaling $10,000 or more. each agency made authorizes a payment of a cash award up through $10,000. it then says awards over $10,000 are quite rare. if it does warrant and that the agency must submit a request. we went to opm did they received any request from gsa to approve with these 159 employees the awards that total $10,000 or more? the answer is that opm did not. would may further examine this. fi

things that dodd- frank requires is that you provide a financial operating plan and forecast to the omb. i understand you did not do that, but given a budget justification form, which is different than a financial operating plan. additionally, we have less to to perform -- give performance measures and an overall strategic plan for the agency as of the state -- for the agency. as of the state, we have not received that. you also mentioned the word detail processed -- in determining employment needs. when they ask you what the size was of your organization, you have still not furnished us with any kind of information on what the processes to determine what your employment needs are. i could go on. there are a number of things that we ask you that should be an integral part of any agency or business operating, especially one with half a billion dollar deficit in our budget. is it just that you do not want to furnish the information, or it is not part of the process? you do not have these documents? i am trying to get a handle on it. is it like a conspiracy -- is a lack of transparency, or

through their guidance on specific impacts, and i know that the omb has indicated that later this weekthere will be a report to congress with more specifics. .. drive conclusions on the impact to serve as. we appreciate the work they've done, we don't have any specific comment on moderate their studies because they are all based on individual assumption or which may or may not play out under sequestration scenario. >> thank you, mr. chairman. >> thank you. chairman mica. >> okay, inspect their general and mr. delay in hand, what period of time did you cover in your review, inspector general? >> chairman mike acoma cover the last several years. >> okay, but did you include the post. after february 14 when we send the new legislation or as most of this before that? >> matches before that, sir. we have updates and faa initiatives post february. >> mr. dillingham? >> yes, most of our work was it every 14 days but we also updated the work where we could in the time allowed. >> the time reason i ask is that the specific parameters in law trying to do with some of the problems disclosed befor

to negotiate the final details of our waiver and met with officials from the white house and cms and omb. i returned to oregon on may 3rd with a commitment from the federal government to invest $1.9 billion in oregon over the next phi years to -- five years to help us transform the delivery system. now, as a part of this agreement, oregon agreed to reduce the medicaid per member, per member inflation rate trend by two percentage points by the end of the second year down to 3.5% and to lock in that rate of growth going forward. these cost savings will fully pay back that $1.9 billion investment in five years and will save the state and federal government $11 billion over the next ten years. i would just add if every state in the country adopted that same program and had that same inflation rate, we would save over the next decade $1.5 trillion. the supercommittee was supposed to save 1.2. this would actually save 1.5 by actually making people healthier and creating a more rational system. in july 5th we received the final waivers from cms that allowed us to move forward, and as of septemb

negotiate the final details of our waiver, and met with officials from the white house and cms and omb and returned to oregon on may 3 with the commitment of the federal government to invest $1.9 billion in oregon over the next five years to help us transform the delivery system. now, as a part of this agreement, oregon agreed to reduce the medicare per member -- per member inflation rate trend by 2 percentage points by the end of the second year down to -- 3.5%. these will pay back the $1.9 billion in five years and save the state and federal government $11 billion over the next ten years. ly add that every state in the country adopted that same program and had the same inflation rate we would save over the next decade $1.5 trm. the super committee was supposed to save $1.2. this would save $1.5 by making people healthier and creating more racial system. in july 5 we received a final waiver from cms to allow us move forward and september 1 we have 13cco up and operatings covering about 0eu% of the medicaid population. when they become operational we'll be covering over 90% of the popu

working on the omb team, reaching out to economists to get the best ideas we could get, i talked to marty and he made the suggestion. i talked to my deputy responsible for my defense and security policy. they reached out to the defense department to see if we can do this policy of ramping up production in the short term. a they went and investigated and talked to the firms that were involved. they said, we are fighting two wars right now. if you give us more money right now to try to shift things forward, it would take a year- and-a-half to build them. they said they could not wrap it up. we were told it was not feasible. >> let me turn to medicare for a minute. we do have a spending problem and we don't seem to have talked as much about medicare as i would like. the medicare status quo is not sustainable. irani and ryan approaches to go to the support where people would get a set amount of money and be competition among private insurers. the criticism is that it would shift the risk onto the shoulders of the elderly. the obama approach is exclusively on reducing payments to providers. ca

you can see the omb historical debt levels and then the gao projection.ost in what we're looking at here? guest: the sudden sharp rise at the end. that is what it is illustrating, the growth of the debt. we used to have big spikes in debt for things like war and recession. the basic problem is we have a fundamental structural deficit between the spending promises and the revenues that we're bringing in. the most alarming thing is that even if we assume a strong economic recovery and a complete withdrawal from overseas operations, that line was still look pretty much the way it does because of the underlying mismatch between spending and revenues. host: good morning from florida. caller: good morning. thank you for c-span. i keep hearing the top 5% are paying 40% of the taxes. what percentage would they have to increase to shrink this debt that leads to the deficit? it is strange when you hear they are paying 40% now. could you get much more out of them to shrink this debt? i know there's a large proportion that is not paying any taxes. i'm in that group.

well, we always thought and i think if you look at the collection of characters, certainly who are ombter [inaudible] we always thought that creating a norm around having insurance that the socially responsible person if you don't have insurance and get sick and end numb emergency room or using regular care you impose a burden on everyone else and you're not being socially responsible. we thought that was a very powerful argument. and powerful motivators. as best as we can tell its a powerful motivator in massachusetts for people to get insurance. that everyone does it, the responsible citizens does it, and you're, you know, as part of your individual responsibility you're supposed to do it. we thought it was important. and we thought that the penalty reinforced that as being your social responsibility when you shirk your responsibility you had to pay for it. and so i think we were very motivated by both sides. i know, my boss frequently made the seat belt analogy. look, there are penalties for seat belts but got a tax got the ticket for not wearing a seat belt no. it's a wide spread s

to negotiate the final details of our we for and met with officials from the white house and cms and ombi return with a commitment to invest $1.9 billion in oregon of the next five years to help us to inform the delivery system. as a part of this agreement, oregon agree to reduce the medicaid remember -- per member inflation rate trend by two percentage points by the end of the year and to lock in that rate of growth goering board. that will pay back the investment identify years and save the state and federal government $11 billion over the next 10 years. if every state in the country adopted that same program, we would say over the next decade $1.50 trillion. the super committee was supposed to save $1.20 trillion. this would actually make people healthier in creating more rational system. in july 5, received a final waiver from cms that allowed us to move forward. september 1, we have 13 cco's up and operating, covering about 11% of our medicaid population. before i go, i want to take a moment and speak to this 3.5% inflation rate that we have agreed to. which may seem like a daunting