>> we built the budget and built it to the basic 10-14, the ryan-murray levels. there are puts and takes that have different technical places. for instance, our wildfire proposal that cecilia mentioned and how we do that would be one of the examples of why when you see those numbers in the budget what you see. the wildfire proposal, just to go over it briefly, give you an example what kinds of puts and takes. we believe that the issue of wildfire financing in the united states at this point in time is not being done in a way that's most cost efficient and effective in temples impact. what happens is on an annual basis when the wildfires start, the department of interior and usda end up hollowing out. they hollow out the types of investments we need to make in the efforts in the space. so what they do is they take money from other places. they can't do planning and take money from other places we should be investment. what happens by notals but most of the time what happens is those moneys get replenished at a point in time. what we think is a better approach is t

ryan-murray is the budget deal struck with representative paul ryan and patty murray.is law signed into law by president obama. when we come back, israel's prime minister goes one-on-one with liz clayman, and check out tonight's grapevine by going to my blog at the dailybret.com. you can also get there from our home page. check it out. i can't believe your mom has a mom cave! today i have new campbell's chuy spicy chicken quesadilla soup. she gives me chunky before every game. i'm very souperstitious. haha, that's a good one! haha! [ male announcer ] campbell's chunky soup. it fills you up right. thank you. thank you. i got this. no, i'll get it! no, let me get this. seriously. hey, let me get it. ah, uh. i don't want you to pay for this. it's not happening, honey. let her get it. she got her safe driving bonus check from allstate last week. and it's her treat. what about a tip? oh, here's one... get an allstate agent. nice! [ female announcer ] switch today and get two safe driving bonus checks a year for driving safely. only from allstate. call an allstate agent and

let's go with ryan/murray. >> now that we realize the impact it has on defense, it's murray/ryan. i'm kidding you. so that agreement, just to remind all members here, set the levels for fiscal year 2015 defense. i would urge everybody to look at the testimony delivered today in the senate armed services committee by chief of staff general dempsey as well as secretary hagel saying that those resources are adequate to meet all of our defense requirements. i would also emphasize what director burwell said, which is the president's budget for fiscal year 2015 sets aside an additional fund, both to help grow our economy, because that's important to our national defense as well as our kids' future, as well as restoring additional funds to defense to increase our military readiness. so if our republican colleagues would join us in supporting that effort, we would welcome it. yes, mr. chairman, we do believe that paying for those additional tax -- you know, those additional defense costs by closing special interest tax loopholes like hedge fund loopholes and others, is an important trade-

let's go with ryan/murray. >> now that we realize the impact it has on defense, it's murray/ryan. i'm kidding you. so that agreement, just to remind all members here, set the levels for fiscal year 2015 defense. i would urge everybody to look at the testimony delivered today in the senate armed services committee by chief of staff general dempsey as well as secretary hagel saying that those resources are adequate to meet all of our defense requirements. i would also emphasize what director burwell said, which is the president's budget for fiscal year 2015 sets aside an additional fund, both to help grow our economy, because that's important to our national defense as well as our kids' future, as well as restoring additional funds to defense to increase our military readiness. so if our republican colleagues would join us in supporting that effort, we would welcome it. yes, mr. chairman, we do believe that paying for those additional tax -- you know, those additional defense costs by closing special interest tax loopholes like hedge fund loopholes and others, is an important trade-

that's ryan-murray. it does not, would you agree to? >> i'm sorry, our budget does not adhere to ryan-murray? >> right. >> we do because the documents that have been put up shows for how we will meet those -- >> it does not agree with the ryan-murray, forgive me. >> senator baldwin? >> thank you, chairman murray and ranking member for holding this -- welcome, director burwell back to the committee. as i begun to study the president's fiscal year 2015 budget, i think there's a strong acknowledgment on the half of the administration that we are facing deficits on several fronts and have several varieties. while we are making our way to stabilizing our fiscal deficit, we are also facing and infrastructure deficit, and education and workforce development deficit, and for research and innovation deficit. and addressing these other deficits will help us out of our fiscal deficit because it sets the foundation, in my opinion, for long-term economic growth. for this reason i am encouraged by the opportunity, growth in security initiative in the

>> the proposed budget does with the ryan-murray budget does on a one-to-one basis.e leave both are equally important. >> any others on budget related issues? [inaudible] >> the budget talks about the it [inaudible] and the problems associated with the aca roll out. what are you planning for more efficiency and effectiveness? >> let me speak to three particular areas we will focus on with regard to reforming the way we in the federal government to it procurement and delivery. the three areas where we will focus our attention are making sure the government has the best people. as a part of the conversation we have had around health care.gov and how we think about procurement and planning is making sure we and the federal government are able to attract the best talent. the second is how we attract the best companies. the best companies in terms of the problems we are working on and do our current preferment rules and approaches do that? that is the second area of focus. the third area is the best processes. the best processes are about how you attract -- these are inte

as ryan murray suggested, the dÉtente. is that what it looked like from where you are?what can we look forward to in the next few months? >> first of all, it's great to be here. i appreciate the opportunity. i think you have a temporary truce on the budget wars. the budget agreement that was reached in december carries us through fiscal year when 2014 and 2015. you have an agreement to increase spending on those by 2015 you are back to current law, and that is the sequester with the deeper across-the-board cuts. look at some point we are going to have to resolve those issues. there were concerns we would have another showdown about the debt ceiling. we were able to approve the debt ceiling without too much forensics. there is some talk, and it is only talk, that the house republicans -- my colleague paul ryan may be considering putting forth a budget proposal that would actually change parts of the ryan-murray agreement. i hope that is not the case because that would route -- would create unnecessary disruption. there is talks they try -- they will try to increase the d

the ryan murray deal for 2014, shows 1012, fwhbut the budget ss the 1030. can you explain that? >> there are parts that have different technical places. the wild fire proposal in how we do the wild fire proposals is one of the example of the numbers you see in the budget. to go over the wild fire proposal, we believe the issue of wild fire financing in the united states isn't being done in the cost effective way. on an annual bases, when the wild fires start they end hollowing out the types of investments we need to make in the efforts in the space. they can't do planning and take money from other places. we should be investing. what happens is those monies get replenished at a later point. we think it is better to think about using the disaster relief fund that has levels above. the fund is above the caps. we would use space within that for a portion of funding for wild fires. that is what one of the types of things that adds to the numbers. so the budget is built. there are things like that which is within authorized levels. >> okay. so we have time for a couple questions on o

building on the model established in ryan-murray, it is paid for with spending cut and tax reforms. it is deficit neutral. supporting what the president said in the state of the union, there is a series of programs to create jobs. it lays out $302 billion infrastructure proposal that is paid for with pro-growth tax. it strengthens the manufacture base and supports groundbreaking research to fight disease, protect the environment and develop new technology. it enhances the administration's management efforts to deliver a government that is more efficient and supportive of economic growth. and it will expand opportunity for all-americans. it doubles the maximum value of the earned income tax credit to encourage people to enter the workforce. and makes high quality preschool available to every four year old. and drive workforce training. it will focus on the primary drivers of long term debt and deficits. it builds on the forms of the affordable care act and continues to slow health care cost growth while improving the quality. it will curb tax breaks that benefit the wealthiest. it ca

whenyear, what we did see chairman ryan and chairman murray came together, we saw an ability to havean agreement and move forward. than in the next step, you saw chairman mikulski and sherman rogers able to do something that has not happened since 1987. that is when all the bills had gotten done in one bill like that. >> the glory days. >> that has not happened in a long time. i think in the appropriations concept of this year, we will see hopefully bills start to move and some of that regular order return. >> so let me move -- is there oh good.doing -- are there enough healthy young people signing up for obamacare? i know you have up to 5 million. we will slow the cost eventually and premiums will go down because everybody will be in. but that depends on people much younger than me and equally healthy. >> i think the question of the affordable care act and how the riskaction of risk and the pool with premiums is an important one and one that everyone is rightfully focused on in terms of making the numbers work and the system work. i think right now this is something that we are not

>> the first thing, we present a budget that has what we believe ryan-murray levels that were agreed upon. the appropriations process started the day we send the document to the hill. we gave them what they need to go forward. a budget is a representation of what your revision is. wasidea behind our budget to present what we believe should happen. we did what we could to support the process going forward. did do $56, we billion with $28 million on the nondiscretionary side that was fully paid for. what we believe is that we will give you our priorities if you stay at this level. what we believe in terms of the health of the economy, something that was mentioned in the last session, we believe that is the right approach. that additional investments in the space of infrastructure, innovation, education, and our national security to give examples of the types of things that we would do when fully paid for. and yes, we believe some revenues and other kinds of cuts are a better approach to providing economic growth. so we believe the budget is within the context of the over arching lines

it was a rare moment when pay ryan and paul ryan -- patty murray and paul ryan were able to come together. what comes to the floor and what does not come to the floor is a decision for party leaders, but the process is important because it enables observers, voters, the press to understand should a party when control of the senate, the house, or the white house, where would they go with the country. the budget might not be passed on the floor of the congress in either chamber, but it will be parsed over by voters a cousin has details. paul ryan's previous budgets have shown a reduction in social safety net spending, a reduction in medicaid, head start, food stamps, and that really set the tone for the republicans message, and with the president, he is focusing on the poor, on low-income voters, abc details of that in his budget that is one of the best ways to understand where people stand. host: roanoke, virginia. cornelius. you are on with robert costa. caller: how are you doing. guest: good morning. caller: look, i am calling about what is going on. frustrated about this extension of un

as ryan murray suggested, the dÉtente. is that what it looked like from where you are?what can we look forward to in the next few months? >> first of all, it's great to be here. i appreciate the opportunity. i think you have a temporary truce on the budget wars. the budget agreement that was reached in december carries us through fiscal year when 2014 and 2015. you have an agreement to increase spending on those by 2015 you are back to current law, and that is the sequester with the deeper across-the-board cuts. look at some point we are going to have to resolve those issues. there were concerns we would have another showdown about the debt ceiling. we were able to approve the debt ceiling without too much forensics. there is some talk, and it is only talk, that the house republicans -- my colleague paul ryan may be considering putting forth a budget proposal that would actually change parts of the ryan-murray agreement. i hope that is not the case because that would route -- would create unnecessary disruption. there is talks they try -- they will try to increase the d

it violates the ryan-murray 2014 of the congressional budget act because it violates the top li line. nobody's going to come down here and say it doesn't. you won't hear one speaker come down here and say it doesn't violate that. it does. they know it does. but they won't speak the truth. this bill also spends money in excess of finance committee's allocation, another point of order against the budget act. everybody knows that's true but they won't come down and say it doesn't. but they'll just vote for it. and it also has language in it within the budget committee's jurisdiction that has not been reported or discharged. so we're totally ignoring the process, like the chairman of the finance committee would like to have, so we can do the expedient political thing to take some pressure away. just like we did on the flood insurance bill. it got a little hot in the kitchen. instead of actually cooking the omelet, we threw the eggs in the trash can and ran out of the room. and that's exactly what's going to happen here. so we're putting off again the hard choices. let me tell you why this

but you know, against all odds, ryan and murray did find a compromise before. so it isn't guaranteed not to happen. >> host: the president's budget is one thing, murray and the ryan deal is another and you have the of the approperators >> guest: right they are hard at work and people are not paying much attention to that. going forward, that work is going to continue. the president and whitehouse will try to strike the balance because congress has the ability to shift or shape what the lower level accounts look like. but this is a battle on what happens after the year. >> host: and then what? >> guest: if the republicans win in the senate and increase in the house, it is hard to see obama achieving much in the final two years. maybe republicans will do a deal on corporate taxes, but it is hard to imagine. if democrats keep their senate majority and enhance the house position, and few expect them to win the house, or no body. and then you can see jobs, infrastructu infrastructu infrastructure initiatives and closing loopholes. >> host: the president's budget is

put into placeal by paul ryan and patty murray. she was asked about it and here is her response.video clip] an opportunity, growth and security initiative that is fully paid for. the betweenevenly defense and nondefense. it presents additional investments in things like education, research, and manufacturing. building on the model initiative ishe fully paid for with a balanced package of spending cuts and tax reforms. it is deficit neutral. host: here is what paul ryan had to say. the president has just three years left in his administration and he seems determined to do nothing about our fiscal challenges. this budget isn't a serious document, it is a campaign brochure. you can tune in to watch sylvia burwell to talk about the budget and the5 discretionary spending on p.m. eastern00 time. i am listening to what he has outlined and even though it is the congress and senate's job to put the bill for, i think he is making a good effort towards reining in a lot of spending that is being wasted. host: the president's budget does not include tackling entitlement reform, social securit

emma paul ryan may be considering putting forth a budget proposal that would change parts of the ryan-murray agreement. i hope that is not the case because that would create unnecessary disruption. there are some talk they might try to increase the defense spending number for fiscal year 2015 and reduce the non-defense spending for fiscal year 2015. i should be very clear that those numbers were carefully negotiated. thatere was a move in direction, it would create unnecessary uncertainty. but as of now, a temporary truce, i think and hopefully that will last. >> you were pretty lukewarm on that deal. this kind oflike change happened, what would it look like politically and how with the process go? >> if you had a change in the agreement, that with throw a monkey wrench into the process. one of the benefits of the bipartisan agreement was that thepeople who actually make decision how to spend and allocate funds in those limits, they have been able to get to work. for years, they have not been able to get to work because there hasn't been an agreement between house and the senate as to what t

this ryan murray suggests there is a day topbt. we look forward to next few months? great to f all, it's be here. i think you have a temporary truce. the budget agreement that was reached in december carries us year 2014 and fiscal year 2015. 2015 begins next october. in ou've got an agreement place to increase spending relative to those very deep for that board cuts period of time. but after that, after fiscal back to , you're current law and current law is he sequester very deep across the board cuts again and so at some point between now and then revolve ng have to to those issues there. was a concern of course that we showdown overther the deficit but fortunately we did not and we were able to the debt ceiling without too much frenzy. there is some talk now and it's the house hat republicans, my colleague paul may be considering putting fourth a budget proposal that actually change parts of the ryan murray agreement. the case t's not because that would create unnecessary disruption. they might trylk to increase the defense spending 2015 and fiscal year reduce the

in terms of the departmental totals are each what we would do under meeting the 15 levels of the ryan-murray agreement. >> alexis. >> there's been a lot of debate, discussion, whether the affordable care act is bankable savings in the health care costs over the long term. can you just describe how you've calculated in the budget the long-term effects of the a.c.a. health care costs in terms of deficits or building it in for a 10-year reduction? >> those estimates are done by c.m.s., working with o.m.b. so they're not estimates that i've done but i can tell you from the analysis that we've done at the council of economic advisors, which is consistent with the way both c.b.o. and the administration have updated their baselines for outyear health costs has been observing that. you've seen three years in a row of very low health growth. if you look on a per beneficiary-inflation adjusted basis, medicare has been 0.04%. and medicare has actually fallen, that the economy doesn't have a substantial impact on medicaid, so some people debated whether the recession cautsed -- caused the slowdown. i th

isty murray and paul ryan's another, but then you have the role of the appropriators and all of this. guest: right. the appropriators figure out the budget for this year, it in it happens behind the scenes. the omnibus bill, a lot of appropriations for this year at the top level police and many individual as well. that work is going to continue. the president and the white house will start to affect that balance because congress -- there's still an ability to shift or shape what some of the lower level accounts look like. really this is a battle about what happens after this year. host: and then what? thet: if republicans win senate committee and large their majority in the house, is very hard to see obama achieving much in the final two years of his presidency. maybe republicans will want to do a deal on corporate taxes or eitc, but it is hard to imagine. if you expect democrats to win the house. republicansld see looking at a jobs initiative, and infrastructure initiative, closing some tax loopholes. they really depend somewhat on the resolution of the house, of senate elections bec

different times such as in the kate case of immigrati immigration, we in the process that chairman ryan and murray, we tried to put forward our principles so you new where we stand and engage in a significant way. >> last year the administration's budget said you were going to under take review of the top ten valley authority. what have been the results of that review? >> one of the things are the ways and approaches that the tva is taking to thinking about it's long-term needs. still want to know and understand the way in which those have been implemented. make sure that they consider the impact ip the state of tennessee. >> what about mississippi? >> as well. >> when will the comments of the stakeholders of that review be made public? >> i will be honest and say i don't know the answer to that question. >> we can get back to you on that. >> tba spends $100 million a year on non power related activity. and i'm not convips convipt con that any talk of paying for pva. any future budget remditions that you have on that subject. >> thank you mr. ryan and mr. chairman. i think we can see where the phi

when they gave us there common number from the ryan-murray budget deal, we were able to n construct with this committee, the bill in 30 days, including the two major holidays. so we can do the job and we are proving we can and that is where we're now. madam chairman, unfortunately, i found myself at odds with our agency every since i have been here and certainly ever since you have been here. and that is not changed today. for years, it seems the epa has worked hard to devise new regulations that are designed to eliminate coal mining, coal burning, useage of coal period and that means jobs where i live, especially in my district. there has been a relentless attack by your and your predecessors on jobs in the coal industry. these are jobs that are critical to the local communities where these workers live. they are their only jobs there. i have had 8,000 of my miners laid off. they went from $80,000 to trying to find a job at mcdonald's to support a family. and i don't find any heart beat up here concerned about the well-being of these americans. i just don't see it. i see relentless on-g

this is out of the budget which is within the ryan-murray envelope, $30 million to utilize within ourtackle projects which would be particularly appropriate for the darpa model where you have a project manager who identifies a bold, innovative strategy to tackle a really important problem. and then has the freedom to go out and recruit those who might contribute to it. small companies, individual academics. put this together into a team but not sort of taking the maybe sometimes year or two that it might, to go through the usual grant solicitation and award and not always getting exactly the team he hoped for. so this puts the project manager in a much stronger position to scope this whole enterprise. and for darpa that's been pretty successful model with things like gps and internet and a few other things that turned out pretty well. we are very pleased to be able to have the authority in the $39 to tackle projects of that sort. one that we're thinking about which has just begun to emerge as a really exciting scientific opportunity is the notion that one might be able to design techn

budget then proposes the creation of a new and costly political program that does not adhere to the ryan murray plan enacted into law just months ago, and that has no plan and no justification. this so-called opportunity growth and security initiative is little more than a political wish list that has been presented to congress and to this committee in an amateurish and wholly inadequate way. finally, your budget simply does not comply with the law, as it is missing some 20 reports and expenditure plans required to be submitted with the budget. this is an argument that we have had, especially with homeland, for years. in this is how we were able to use facts to understand your budget. but the failure to provide these 20-some-odd reports is inexcusable. frankly, it's offensive. late and incomplete do not comply with the law, nor meet the subcommittee standards for budget submittals. mr. secretary, this subcommittee deals in matters of reality, meaning we enforce the law as it is written, not how we would like it to be. and we only deal with laws and offsets that are real, not some false or ficti

[laughter] the agreement that chairman murray and chairman ryan came to that was endorsed by the congress was the appropriations bill. they were small steps toward better budget policy, not endorsing the particular actions that were included. but getting a company of people to agree on something that allows the government to be funded and move ahead was very constructive. the fundamental fiscal challenges that we face remain. the fundamental fiscal challenges come from growth in spending for social security and a major health care programs. the government as a whole is not getting bigger relative to the size of the economy. in our projections under current law, all federal spending apart from that for social security and major health programs will be a smaller share of gdp by 2020. social security will be more expensive relative to gdp. that comes from the aging of the population. there'll be one third more people receiving social security benefits a decade from now than there are today. coming partly from rising health care costs per person, not as rapid and increase but still rapid enou

i am hopeful that the process will move swiftly and smoothly given that ryan-murray budget agreement. i think it is fitting that this commitment to regular order and transparency in the appropriations assess is reaffirmed at today's hearing with the irs. just as congress has a supreme responsibility and stewardship of the taxpayer dollars, so too does the irs have that special duty to apply our countries tax laws fairly and uniformly. commissioner koshinen, you have taken the helm of this agency during a tumultuous time to say the least. in the recent years, there have been grave violations of the public's trust that should give all americans cause for concern. i hope that you are the right person to write the ship -- right the ship. as i wrote to you earlier this month, i have serious concerns about the opposed regulation published by your predecessor in november. this rule would continue to target the first amendment rights of the same conservative grassroots organizations that were unfairly scrutinized in applying for tax exempt status in the run-up to that 2010 and 2012 elections.

can the gentleman tell me whether or not the firewall that's also included in the ryan-murray agreement will be honored as well? and i yield to my my friend. the firewall, as the majority leader knows, between discretionary, defense spending and discretionary, nondefense spending and i yield to my friend. mr. cantor: mr. speaker, i'd say to the gentleman, i have not had the discussion with the chairman on that particular issue. i'm aware of the gentleman's concern. and i think the gentleman represents his caucus in the desire. unfortunately, to limit the defense spending, i think the question is aimed that we have differences in that. given what's going on in the world right now, feel very strongly for the need for american military power and our ability to project that. not always necessarily, mr. speaker, to use it but necessary in our diplomatic role as well. so i don't have the answer to the gentleman on that and would refer him to the budget chair or i'm glad to engage in any conversation with him going forward. i yield back. mr. hoyer: i thank the gentleman. just to make it clear,

when they gave us the common number with the senate in them ryan murray budget deal, we were able tonstruct this committee and construct with the senate and on the this bill within 30 .ays including the major holidays. we have done the job, we have proven we can do the job, and that is where we are now. madam chairman, unfortunately i find myself at odds with your agency, ever since i have been here. certainly since you have been here. that has not changed today. for years, it seems that the epa has worked hard to devise new regulations that are designed to coal mining, coal burning, usage of cold. . which means jobs where i live. especially in my district. there has been a relentless attack by you and your predecessors on jobs in the coal industry. critical jobs that are to the local communities where these workers live. they are the only jobs there. i have eight -- i have had 8000 miners laid off in the last few months, going from a good paying job of $80,000 to finding a job at mcdonald's to support a family. i don't find any heart beat up here concerned about the well-being of th

the includes a costly political program that does notted a hire to the ryan murray plan in accidental law just months ago and that has no plan and no justification. the so-called opportunity growth and security initiative is a little more than a political wish list that has been presented to congress and o this committee and in an inadequate way. finally your budget does not comply with the lie as it is missing some 20 reports, a plan to be required with the budget. this is an argument that we have had especially with homeland for years. is is how we are able to understand your budget to provide these 20 some-odd reports is inexcusable. frankly it's offensive, late and incomplete do not comply with the law for budget submitals. we deal in matters of reality meaning we enforce the law as it is written not how we would like it to be. how we only deal with laws an off-sets that are real, not some false orphicity shouse fee. -- or fictitious fee. that's why the subcommittee has to submit to three core principles. we've done that since roger was in charge an has been carried out for three

we established that the budget agreed to by patty murray and paul ryan, those spending levels stay inlace, and you'll use a few other tax hike is to par for $56 billion to relieve s sequestrati sequestration. we have a piece coming up that shows nih will be funded at 30.2 billion. that, in real term money, equivalent to the level that george w. bush funded nih in 2002. we're not making people whole. we're lagging pretty badly. but as if you were to look at what republicans are saying, this is the most reckless spending possible. >> sam, on that note, the president say, our budge it is about choices, about values and this is expected to go nowhere, it's a moral document in the most sort of clear fashion from the white house. at the same time, you know, the president puts this out there and it's greeted with, vitriol and also sort of in the days coming, i think, crickets. dave camp announced a major piece of tax reform, which you can agree with or not but his own party put the nails in the coffin and said it was going nowhere. republicans feel like they have to no longer answer policy w

he will adhere to the caps in the ryan-murray negotiated budget. it is not written yet but i do not think it will be dramatically different from the last two or three paul ryan budgets. he will grant medicare to the states again. we do that with welfare and it worked well. i think it will be bold and innovative. i think it will be politically risky. all the things the president posses budget was not. host: the budget agreement you brought up, a touch it cap in 2015, an agreement that got pushed back from republicans in the house. a lot did not vote for that. do you think paul ryan will have trouble passing a budget that sticks to those cats? -- caps? guest: a quick question -- a great question. what it does not have his extensive entitlement reform. those are two pretty a -- attractive things and it makes it easier for people who would have preferred a lower discretionary number to swallow it. i can tell you that is a matter of considerable concern to us and we will work very hard. again, a budget has to pass from your own party supporting it. will

[laughter] so the agreement that chairman murray and chairman ryan came to endorse by the congress and the appropriations bill that followed from that were small steps toward better budget policy and not endorsing particular actions that were included but just i think the gathering of people to agree on something that allowed the government to be funded and to move ahead was very constructive. but fundamental physical challenges that we face remain. the fundamental fiscal challenges, from growth in spending for social security and the major health care programs. the government as a whole does not get bigger relative to the size of the economy. under current law are projections under the current law, all federal spending apart from social security and make your health care programs will be a smaller share of gdp by 2020 than at any point in at least 70 years. but social security and the major health care programs will be much more expensive relative to gdp than they have average in the past. that is coming from the aging of the population. there will be one third more people receiving s

one part has to do with the budget world as it is under the peace treaty that paul ryan and patty murray struck a while ago, that is spending levels that have already been agreed to. the other part is the budget world as the obama administration would like it to be. it's not going to be realized this year, but he's trying to lay out and make an argument about what the shape of a deal will be ultimately when they have -- when republicans and democrats decide it's time to negotiate one. here is the president reflecting both sides of that. >> this budget adheres to the spending levels that both parties in both houses of congress already agreed to, but it also builds on that progress with what we're calling an opportunity, growth, and security initiative that invests in our economic priorities in a smart way that is fully paid for by making smart spending cuts and closing tax loopholes that right now only benefit the well off and the well connected. >> so what the president is talking about is his proposal to have a $56 billion increase in the sequester caps similar to what was done by paul

under the budget plan that we modified with the murray-ryan bill. base bers for the defense budget, for f.y. 2015, is $4.95 -- $495.6 billion. the peak in fiscal year 2012 was $530 billion. so we're down $35 billion in actual dollar spenting -- spending from where we were at our peak. but that remains flat for two years and then begins to grow at the rate of about $13 billion a year. so i'm worried about where we are. i'm worried about what kind of damage this may do to the military. but all of us got to be realistic. there's not going -- you're not going to be able to expect that congress is just going to blythely add a lot of new spending. we don't have the money. and a fundamental threat that's impacting america now is debt. we'll have way above -- interest payment is the fastest growing item in our budget. it's just terribly dangerous to us. combat locklear, on the ship, one of the things that we are worried about with regard to china is their sophisticated expansion of their submarine capability and even nuclear capability of submarines. that s

it was a rare moment when pay ryan and paul ryan -- patty murray and paul ryan were able to come together. what comes to the floor and what does not come to the floor is a decision for party leaders, but the process is important because it enables observers, voters, the press to understand should a party when control of the senate, the house, or the white house, where would they go with the country. the budget might not be passed on the floor of the congress in either chamber, but it will be parsed over by voters a cousin has details. paul ryan's previous budgets have shown a reduction in social safety net spending, a reduction in medicaid, head start, food stamps, and that really set the tone for the republicans message, and with the president, he is focusing on the poor, on low-income voters, abc details of that in his budget that is one of the best ways to understand where people stand. host: roanoke, virginia. cornelius. you are on with robert costa. caller: how are you doing. guest: good morning. caller: look, i am calling about what is going on. frustrated about this extension of un

you may have also noticed that paul ryan cited a man named charles murray.red a book arguing that white people are smarter than black people. i would call that a dodgy citation, but your mileage may vary. the real irony is that murray's latest book, argues the very cultural problem paul ryan is describing is rampant among working whites in this country. there are so many pieces of advice i have for paul ryan, who i would love to have on the show if you're watching, as he continues this poverty crusade of his. but the most important one is that he needs to stop talking about people who are poor, and start talking to people who are poor. robert, am i being mean? am i being unfair, uncharitable to paul ryan? >> i think you're being a little bit uncharitable. i don't think that he is the first politician to use a slight of hand and say innercity as short hand for talking about issues of poverty and economic deprivation and so forth. i don't think he's trying to be coy. and i'll say this, i think paul ryan in particular, he's a protege of jack kemp who addressed

the all to keep them all straight -- but the budget debate that ended in december, the so-called ryan-murrayet, paul ryan, chairman of the house budget committee, patty murray, the democrat who is the chairwoman of the senate budget committee came up with a budget agreement to ease the impact of the across the board cuts known as the sequester for this year and next the, which really has taken steam out of the big budget fight. murray so that senator announced just a couple days ago that she sees no reason to even do what is a normal process, which is to take the president's budget and modify it and turn it into a congressional budget resolution. she says no need to go through that. a politically dicey exercise because the big topic of the year, which is how much money is there to spend on discretionary programs, or grams over which congress has the power, that has already been decided. the amount of money was set last winter for both the current fiscal year, which ends october 1 him and that current fiscal year which starts then, which is what this budget is about. >> house republicans are

paul ryan and patty murray. i think paul ryan is growing as a politician. not as reflexively conservative. i think he was willing to look at even some modest revenue increases. we got a farm bill. wasn't a great bill but we did get a farm bill. most importantly you see clear signs from the republican leadership in the house that they did not want a crisis over the debt ceiling. we had a meeting right after thanks giving with one of the leaders in the house, one of the republican leaders and he was quite candid. he said we hurt our brand in october with the shutdown and with the debt ceiling uncertainty. and we're not going to do that again. we are determined to focus on one issue and one issue only. and that issue of course is, obamacare. the republicans feel they have been given a gift from god. so why, why do you mess up your narrative on obamacare by precipitating a crisis? so there's not going to be one. i think gridlock has diminished and who knows, maybe in the few months we'll see a poll showing that the congressional job approval rating has gone fro

host: do you think there will be benefits and the relationship between paul ryan and patty murray? guest: i do. you see that in the conversations with chairman ryan. when we are having a conversation about what went right and what went wrong in december, he sticks to those commitments. this was not a bait and switch conversation. this was a very hard, difficult conversation and they came together. look at what has happened. we have a farm bill, we were able to sort that out. we have a budget deal, at least for two years in th -- two years, passed. work on the to appropriations bills. i see glimmers of hope. not necessarily between the congressional and the white house relationship, but between the house and the senate. when i read my constitution, it is article one for a reason, the house and senate have a special obligation and the a special relationship. host: the end of march brings another deadline. guest: we are taking right along. i believe what you are going to see is a continued commitment to moving legislation forward. i do not think you see folks dodging anything, they are

, ian, with paul ryan saying he didn't understand, how could you not know that book was so controversial? how could you not know and read and understand what someone like charles murrayis saying and expect us to think you were just being inarticulate? >> i think actually the way in which paul ryan cites that book is indicative of how the language of racism is shifting but hasn't completed shifted. so through the 50s, through the 60s the language of racism focused on locating minority inferiority in biology. more recently it's focused on locating minority inferiority in culture. paul ryan gives us the culture version. he says we look to inner cities and we look to culture, but it's the same old racist stereotypes that used to be tied to biology. when he cite, paul murray, we see this is directly connected to the old biological stereotypes, which are ultimately the foundations of white supremacist notions. >> i'll just say in closing this is also the guy who talks about makers and takers and the idea that this 47% and what have you and sort of this lazy idea sort of all goes -- flows through that. thank you to joe madison and ian haney lopez. >> thank you. >> next, we'

when ryan spoke about a cultural tail spin of inner city men who are not even thinking about learning the value of work, he cited charles murraycial scientist who believes african-americans are genetically inferior intellectually and that poor people are basically born lazy. ryan has said he misspoke and he pivoted to rural poverty, which turns out to be worse than urban poverty, especially in the south. but even the broader point that government intervention exacerbates poverty by feeding the pathologies of people who by nature or conditioning lack the superior intellect and drive that makes rich people successful, even when their wealth is inherited, is problematic. you can't argue that the answer to poverty is work, but refuse to address the lack of good-paying jobs, ongoing racial and gender discrimination in hiring, and deficits in education. all of which feed joblessness and hopelessness. to paraphrase ian rand, culture didn't cause poverty, it inherited it. and that wraps up things for "the reid report." i'll see you back here tomorrow at 2:00 p.m. eastern and be sure to visit us online. "the cycle" is up next. what you

ryan is continuing his listening tour through wisconsin. nbc's senior political editor mark murray will join mess live. >>> here's a look at what's happening today, march 20th, my mom's birthday, first day of spring also. the president is headed to florida to kick off a multicity push to highlight economic issues facing women. the president will then head to miami for two fund-raisers, including one tess home of miami heat legend alonzo mourning. we only know one direction: up so we're up early. up late. thinking up game-changing ideas, like this: dozens of tax free zones across new york state. move here. expand here. or start a new business here... and pay no taxes for 10 years. with new jobs, new opportunities and a new tax free plan. there's only one way for your business to go. up. find out if your business can qualify at start-upny.com (knochello? hey, i notice your car is not in the driveway. yeah. it's in the shop. it's going to cost me an arm and a leg. that's hilarious. sorry. you shoulda taken it to midas. get some of that midas touch. they tell you what stuff needs fixin

host: do you think there will be benefits and the relationship between paul ryan and patty murray? est: i do. you see that in the conversations with chairman ryan. when we are having a conversation about what went right and what went wrong in december, he sticks to those commitments. this was not a bait and switch conversation. this was a very hard, difficult conversation and they came together. look at what has happened. we have a farm bill, we were able to sort that out. we have a budget deal, at least for two years in th -- two years, passed. work on the to appropriations bills. i see glimmers of hope. not necessarily between the congressional and the white house relationship, but between the house and the senate. when i read my constitution, it is article one for a reason, the house and senate have a special obligation and the a special relationship. host: the end of march brings another deadline. guest: we are taking right along. i believe what you are going to see is a continued commitment to moving legislation forward. i do not think you see folks dodging anything, they are e