Transcripts For CSPAN2 Capitol Hill Hearings 20130812

War. Booktv in prime time continues this week. Tonight after the communicators, well bring you authors from book fairs and festivals. At 8 30 p. M. Eastern, we begin with Oscar Goodman at freedom fest. He talks about being oscar from mob lawyer to mayor of las vegas. After that, well go to this years printers row Literary Festival to hear about the cooked seed. Then on to bookexpo be america in new york city city with erica jong who talks about fear of flying. And we finish with author and radio talk show host larry elder at the Los Angeles Times festival of books as he discusses his memoir about his troubled relationship with his father in dear father, dear son. Booktv in prime time all this week on cspan2. Cspan, created by americas Cable Companies in 1979, brought to you as a Public Service by your television provider. Host well, with the announcement this week that the Washington Post has been sold to jeff bethos, we thought wed take this opportunity to look at changes in the newspaper industry and the potential future of the news industry in general. We have two guests joining us this week. First, we want to introduce you to alan mutter. He is in San Francisco, and he is a newspaper consultant, hes a lecturer as well at the university of california berkeley on media economics, and he has served as a newspaper editor, a cable tv executive and a tech ceo. Today he consults with both traditional and media traditional and digital companies. Also joining us from from our new york studio is edmund lee who is the media reporter for bloomberg news. And, mr. Lee, if we could start with you, how big a deal is this sale . Guest well, its a big deal in secular terms at least, in terms of numbers, in terms of finances, 250 million isnt its a lot of money, but compared to a lot of media deals, its pretty small. Its more the fact its the Washington Post, a storied brand, a storied newspaper that once helped topple a sitting u. S. President , and jeff bethos whos a well known internet billionaire, despite the fact he tends to be press shy, ironically enough. So thats the sides of this deal, its the secular interest that the big names behind it. Host is there interest in this deal, mr. Lee, outside of washington and outside of media circles . Guest you know what . I think the fact that there are probably almost everyone in this country has come across amazon, either bought something or at least is aware of it will at least, you know, get main streets attention. But, yes, the focus is the power centers. Media, washington, d. C. , of course, and silicon valley. So these are pretty important areas to get peoples attention. In that way, itll sort of amplify down across the country and into main street. Also what it means for newspapers in general, old media with, new media linking up here, and i think that as what thats whats drawing the speculation as to what will happen to the post and newspapers in general, and it seems like he clearly has something in mind. We still dont know what it is though. Host alan mutter, same question. How big a deal is this deal . Guest well, its certainly a big deal in the journalism community. People are going to wonder about how this new owner will guide the journalistic side of the enterprise. But also inside the to Media Business this is a huge story, because the first time that a true digital native has stepped into one of the legacy Media Businesses, a newspaper or Broadcasting Company, and if he acts in any way like he did in disrupting the Book Publishing business, the book selling business, the delivery of streaming media and certainly ecommerce, then mr. Besos probably will disrupt and reenvision what it is to be the hoop in the 21st century and how that business remains a business. Host what kind of disruptions could you foresee . Guest well, as i said, hes very much one of the authors, if you will, of the modern digital world, and he understands the technology, and he understands enormously the modern consumer both of books and things as mundane as diapers or pens. So i think he will bring together those two threads, his understanding of the consumer and his understanding of Digital Information delivery and lidgeal commerce. Digital commerce. Hell bring those things together and say, okay, heres a Major National international brand. Could we make the audience bigger . Could we do more things with the content . Are there more ways to extract money from this large audience in and, of course, can we make the audience bigger and make even more money . Host and a question for both of you, well start with you, mr. Mutter, how do you personalize the newspaper business like you do amazonsome. Guest well, a broadcast on radio or tv or a printed publication like a newspaper or magazine is a one size fits all product. It may have lots of different points of entry, it may have different programs to watch from hour to hour on tv, given articles you can read in the newspaper, but basically everybody has that same experience. Digital information delivery means that products can be personalized enormously based on expressed preferences by individuals as well as by inferring their interests, their needs, their wants from such data as what theyre reading, where they are if theyre using a mobile device with gps, what they are shopping for, what theyve bought. So amazon, of course, has made a great capital of personalizing book offerings. So if you click on a book about mitt romney, youre going to start getting other interesting books about mitt romney and books that other people who bought the book mitt romney bought, theyll say maybe youre one of those guys. As publishers and advertisers track peoples movements on the web and on their mobile phones and their laptops, they begin to develop a profile about that individual so they can send ever more personalized, more tailored content to that individual whether its news and information or commercial information also known as advertising. Host edmund lee, personalization. Guest personalization, absolutely, thats a big part of the amazon selling strategy. But taking a step farther back, i think the key to understand here is that jeff besos is amazon is fundamentally a Commerce Company despite the fact that hes invested a lot in media, and, you know, if you think about the kind and what he did to the book business, hes more about trying to make sure as many people are on his site or on his devices buying thing, and hell sell things. He sells kindles at a loss, hes even sort of brokered relationship with book publishers. So despite the fact he might end up paying the publishers more for each book, hell sell it to the consumer at a loss just so he can get people to his site. Thats important to understand in terms of what he might do with the Washington Post. Newspapers have become more transactional mean the way that the New York Times has recently and the Washington Post this year, you know, engaging in paywalls, basically getting the reader to pay for the content as opposed to having advertisers subsidize his. So the fact that newspapers are already headed in more of a commerce mode in terms of how itll grow or survive as a business, and jeff besos has engaged in that at amazon, thats one of the few sort of obvious links in terms of why that might appeal to him, where he might have thought that fit into his business acumen and probably what more to come. Another aspect to that, that alan talked about earlier as well, you know, is if you take a look at kindles, there there are probably a few million circulating, interestingly enough, amazon Wont Disclose exactly how many they sold, but estimates are from 24 million. Thats already, you know, four times the circulation of the Washington Post. You can imagine that, you know, supposing that theres an arms length deal that you could see Washington Post circulation bump up just by appearing on kindles everywhere. But also taking advantage of sort of the emergence of esingles or short books, so to speak, where you have sort of longer form journalism or articles that get told like a dollar per or 2 per, and the Washington Post has a really talented staff, a lot of them who could easily pump out these ebooks that you could buy on kindles or amazon or any other reading device for that matter. So there are some clear, immediate overlaps that besos could start to turn the post in that direction, and, you know, i think whether its personalization or single kindles or just sort of more digital distribution for the post, those seem to be obvious areas where he might take it. Host edmund lee, how did the post get into the position in the last six, seven years where its circulation went from 700,000 to 470,000 on sundays, 950,000 to 680,000 and got into the position where it was money losing and available for sale . Guest well, two main things. The internet, clearly. But what the internet did can, it made content largely free, so people started to go online to read about news whether its the local weather or sports or whats going on in the world. And, second, advertisers flocked to the internecessary as well because thats internet as well because thats where the ad dollars are going. They could buy advertising much more cheaply than they could in newsprint. Newspapers lost readers which lowered circulation which lowered ad dollars on top of which advertising moving off of print. So its not just the Washington Post, its happened across all newspapers. I think the entire sector saw a 6 drop in Advertising Sales over the last few years or year to year, that is, and its been getting worse since 20072008 when the recession hit. So some of the blame is on the post itself in terms of how it may have managed itself, but newspapers have been falling everywhere. That hastened the need for whether it was the post or the New York Times or small market newspapers to go online and to exploit those audiences in a smarter way without giving things, their content away for free and not turning them away either. Its a balancing game in terms of what theyve had to do. Guest if i could hop in with a bit of perspective. Newspaper advertising revenues which is their primary source of revenue for the business peaked at over 49 billion in 2005, and and last year they were around 22 billion. So more than half of the industrys primary revenue stream has been lost. Guest yeah. Guest and circulation is down about 40 from that 2005 to last year. And newspapers have not had a positive advertising number since the spring of 2006. And most publishers have cut back on their staffs, have reduced pages. Some publishers such as those in new orleans have reduced the days of the week that they print a newspaper, and a couple of newspapers have even gone out of business. So what has been going on, theres been an enormous contraction in the industry in terms of revenues and profit and, therefore, in terms of employment. One out of three journalists have lost their jobs at american newspapers within the decade. So what happened at the post company is that the family having great pride of ownership in the paper to a large degree has resisted a lot of the cutbacks that other publishers have made. And what that meant is they could have made the post profitable in an hour, but they would have done damage to the product and to the journalism and the family legacy. So i think they decided they dont have enough money to stay the course to find a new model, and so the grahams decided that they would find a worthy successor who might have the vision and the resources, quite frankly, and the ambition to find a new way for doing what newspapers have done in the past and do it as well into the future. Host mr. Mutter guest graham family also host go ahead, mr. Lee. Guest just to tag on to alans point, the graham family was very late in terms of adopting a paywall product which most of the major metro market and even smaller newspapers have started doing. The fact that, you know, they could have started that years ago the way the times or the Financial Times or the wall street journal, for example, had done years ago. And i think maybe that certainly hastened their financial difficulties, that they were so late to doing a paywall. And, you know, politico, which is a blog in d. C. , they have a paywall product as well, the highpriced, hightiered subscription product which seems to be doing fairly well. It wasnt a as if there wasnt a market for it. I think they were trying to balance being a Community Newspaper as well as an insidethebeltway read, and i think thats where they may have taken a misstep. Guest i would say theres a strong argument to be made against paywalls pause they harvest more money from the audience you have which is, of course, nothing wrong with that, but they also, that wall also keeps people out who might otherwise look at your product and develop an affinity for it and visit with you more often. So some publishers have adopted paywalls, but some have not, and i think for a long time the post company made a strategic decision. They werent late. They didnt its not as though they didnt know about it. But they made a strategic decision they wanted to build audience by offering their content without limitation in hopes of building the business. History shows that they havent been wildly successful in that, but neither have most of the publishers that do charge for content. The gannette company has 1 digitalonly subscription according to some numbers i ran the other day. A number equal to 1 of all the print subscribers subscribes to the digitalonly product. Thats not really a very big number in the scheme of things. Host well, gentleman guest but if you argue the Washington Post is already a well respected, well known brand, and in terms of balancing keeping readers without turning them away, you know, a metered paywall which is something the New York Times does where you can read ten free articles in a month seems to be a clever way of doing it. I dont think that the post suffered from lack of awareness amongst its readers, i think it just and they eventually did adopt a paywall. The New York Times is a touchstone for this debate. They now develop more than 50 of the revenues from circulation given the fact that advertising has fallen. Its been a big part of their business now. Guest i certainly agree with respect to the New York Times, but it does not have a global audience, you know . Thats something on the order of 29 or 30 Million People who are willing to pay for streaming content, movies and so forth. The New York Times has 700,000 people. Thats when you consider that they have the whole globe to market to, thats wonderful, and im glad that theyre doing it and they can support the work of the New York Times, but its not a major revenue stream that comes close to equaling whats been lost with respect to print advertising. Host well, gentlemen, if we could, what about paywalls, the wall street journal, edmund lee, you mentioned politico as well. Those are two newspapers that are hiring and appear to be profitable, correct . And the Orange County register is another one thats hiring and appears to be profitable as well. Whats their secret to success . Guest well, you brought up some good examples, but they all have different reasons. I think the wall street journal to start with, they had a paywall from the very beginning, since the beginning of the commercial internet, i think 1996 when they went online as wsj. Com, they were probably the first news outlet to say, no, you have to pay for content. And everyone said they were crazy at the time. The mantra of the internet at the time was information wants, needs to be free and, you know, heres dow jones and co. Flying in the face of that. Now its the smart in hindsight, it was clear the smart play or at least the play that everyone else is making. So they havent lost as much from the internet because of the fact that from the very beginning they started, they charged people. When you look at politico, its an upstart, its a new blog or relatively new blog, and they have a tiered model which is there is a free version which gets a lot of traffic or at least relative to its size and given its audience, but they also started what they call politico pro where theres a bit more of the information about the beltway and the lobbying and the bills that are going through, sort of a deeper dive for more cost. So, you know, by all accounts that seems to be doing well, seems to be getting traction. So there is that twotiered element there. The other thing is another ap mall all together animal altogether, Community Newspapers. And i think their sort of mode in terms of doing a paywall is still really new, and the jurys still out in terms of whether it is a success, though they certainly are investing money for staff, and you have to applaud them for that at least. Host mr. Mutter . Guest well, the wall street journal and the New York Times, the Financial Times, certain other products that are what we would call b b to b products, sd to academics, business people, theyve always done very well in terms of attracting advertising and subscription rate, so its not surprising that, for example, the wall street journal has done very well. But, again, most Community Newspapers have, certainly have a passionate be following. But they may not be able to generate the numbers that the wall street journal or the New York Times can do. And i should say that the Washington Post is certainly the brand and its location as the house organ of the capital of the free world. The post certainly has standing in the world to attract subscription following. So, in fact, they might do very well with a pay model online. But there may be other ways to go. And if now under mr. Bezos since hes willing to waitime to make money and spend invest a lot in building audience, he may say the paywall isnt where i want to go right now. On the other hand, he might. I dont know, he hasnt asked me. [laughter] host well, mr. Mutter, if you were advising him, i want to go to the 250 million figure n. The last ten years the Tribune Company was sold for 13bil, plus, the Huffington Post just a couple years ago, 315 million, the omaha world herald sold for 200 million to warren with buffett a few years back. Washington post, 250 million . Guest well, actually, 250 million is a pretty good price for the fact that the Washington Post is losing money. The omaha paper budget losing money, and wasnt losing money, and you cant even equate Huffington Post with a newspaper because Huffington Post is viewed as being a large and growing digital enterprise. It was valued at Something Like ten times its revenues on the very same day that the New York Times company was valued at about one and a half or two times its revenues. So the price is associated the prices associated with newspapers nowadays are all other the map. They have to do the with the passion of somebody to want to own it, they have to do with market fundamentals, they have to do with the characteristics of the business itself. So, you know, the boston globe which is making a profit sold for only 70 million, and the New York Times company has to hold on to 100 million worth of has to pay 100 million or more of pension obligations, so they actually lost money on that deal. And that was a paper that was bought for 1. 1 billion in 1993 when we were live anything a different world. Edmund lee guest if i could jump in here. Host please. Guest if i could jump in on the 250 million figure, its actually a princely sum. If you look at, and we were able to get some good sources to tell us about this, the Washington Post finances, yes, theyve been losing money every year. But also if you look at a line item of their Balance Sheet which looks at earnings before interest, taxes, depreciation, amortization, all it really means is its a good line item to look at in terms of how much money the post had been making, it had been making about 14. 5 million in that kind of profit line. So typically, newspapers have been selling for about three or four times those profits whereas bezos paying 250 million was 17 times those profits. So it was a much, much higher premium than major metro market newspapers have been selling for. So in a way, the graham family made out very nice and its shareholders as well. You could call that the bezos multiple, and he sort of set, i guess you could say, a new standard for what you might pay for a premium newspaper like that. Host so, edmund lee, do you have to be a michael bloomberg, a jeff bezos anywhere to own a paper . Guest you mean in terms of so much to fund a potentially moneylosing enterprise . Yes. Guest well, look at Warren Buffett. Hes been buying Community Newspapers, thats the other end of the spectrum in newspapers, and now jeff bezos. You know, i dont represent bloomberg lp or mike bloomberg, there have been reports hes interested in buy a newspaper such as the New York Times. I think in general these days with newspapers they tend to attract people with deep pockets because it requires a lot of money to keep them going or keep them funding into the future. Guest the reality is the future bids model for a Newspaper Company is somewhat uncertain with, again, advertising revenues continuing to decline. For now some seven years, with profitability uncertain, with future Consumer Habits unknown in the world, in the digital world. We dont know what the next product will be to disrupt the way people get and give information. You know, six, seven years ago if wed have talked about the iphone, we wouldnt have known what that was. Laptops are only about three years old. So if your going to buy a newspaper, youre not buying it per se for the dollars and cents coming in, youre buying it for a sense of Civic Responsibility in the best case or in the worst case to help your friends and punish your enemies. So these now tend to be things that people who have made money elsewhere and who have a little money to spend on a civic mission, more and more newspapers are being bought that a way as opposed to being bought as they used to be bought by Large Companies and publiclyheld Companies Like mcclatchy, gannette in the day, the New York Times company and so forth. So there is a real change in who owns newspapers, and according to the interests of those owners, you know, some communities are worried about, for example, with the owner of the white sox buying the boston globe, how will that change coverage of the red sox . Im not saying it will, im saying thats the question. Host mr. Mutter, why is it significant that the New York Times publisher announced the need to say that the New York Times is not for sale . Guest you know, i really have been wondering about that all night long, i barely slept after i read the announcement. I kind of take it at face value because i think theres been so much speculation based on nothing other than the sale of the post to make people wonder about whether the family could stay the course. I think, i tend to believe that the New York Times is not for sale, because the company has worked to get rid of all the other assets. It had a bunch of small regional newspapers in florida and even one in california. It used to have, own about thatting, its gotten rid of the boston globe. The whole company is centered on the New York Times and all the things it can be such a as the International Herald tribune. So i tend to believe, i tend to believe that the times is not for sale, but i think that the speculation that it could be or should be is kind of logical in light of what weve seen the last few weeks. So i guess, i guess he thought that the statement would silence the speculation, but, you know, being an old time journalist, you know, that actually could be a way to we could riff off that and turn it into speculation. Host and finally, gentlemen, for our last question does this portend anything for the future of journalism and the news industry in general . Edmund lee . Guest well, its hard to say. I think with newspapers in particular, journalism in general, journalism itself is changing. Its manifesting itself in very different ways whether its a blog or through twitter for that matter, and the intersection between video and newspapers these days, so its really hard to say where its headed. I think were at a stage where its still being figured out. And, you know, with jeff bezos buying the post, that was one stark example of heres one possible future for newspapers, and i think everyones doing their own version of it in terms of how they feel like theyll be able to grow their business for the future. I think one more note with mr. Bezos in particular is hes famous for and this is with his amazon business hes famous for not caring about nearer term profits. Hes willing to take a loss even or live a after of small off of small margins for the long term, and thats exactly what the Washington Post needs and any other major newspaper out there. So if theres a future for newspapers or for that kind of journalism, its going to require that kind of, that kind of attitude, that kind of foresight. Host alan mutter. Guest journalism is in a state of complete disruption. Historically, most of the news and information we got was provided by large forprofit corporations, say for public broadcasting and cspan. But it mostly came from large, highlyprofitable companies, and they were able to support having certain numbers of journalists out on the street. As those companies have shrunk, the number of journalists have gone away. The chicago suntimes fired every last one of its photographers including a Pulitzer Prize winner because they just couldnt afford to keep them anymore. So we are now at a point where the old owners, many of the old owners are leaving and new people are coming in from Warren Buffett to mr. Bezos to john henry to the guy who owns the Orange County register. This new blood in the industry is, these are all successful business people, and theyre going to go back, and theyre going to revisit the business model. And the journalism that they can afford to produce or not afford to produce remains to be seen. So at the end of the day, were going to have to start asking ourself, we used to know who owned the news. It used to be big publishing and Broadcasting Companies. Now we dont know whos going own the news. And until we know who owns the news, we really wont know what kind of journalism were going to get. Host alan mutter and edmund lee, thank you both for being on the communicators. Guest sure. Cspan, created by americas Cable Companies in 1979, brought to you as a Public Service by your television provider. Today the National Press club hosts a discussion on the role of federal Public Affairs offices. A panel will examine if they help or hinder government transparency. Speakers from the fields of journalism, Public Relations and academia will participate. Our live coverage begins at 6 30 p. M. Eastern here on cspan2. A discussion now on how the government should Balance National security concerns with the protection of Civil Liberties. Looking at recent revelations of the National Security agencys Surveillance Programs, the governments terror alert and the recent closure of u. S. Embassies. On friday president obama announced proposals to change the oversight and transparency of the nsa. Speakers included congressman peter king who chairs the Homeland Security subcommittee on counterterrorism and intelligence, former New York Times reporter Judith Miller and Fox Business Network host john stossel. The event was cohosted by the Manhattan Institute, the Weekly Standard and the group concerned veterans for america. We want to thank you all for coming. Im not normally intimidated when i speak at these events, but now that i didnt realize gunny Sergeant Duff was here, now im very worried. [laughter] its great to have all of you. I also want to join in thanking those of you who serve for your service and to say how pleased i am that pete king and john stossel have agreed to be here and also judy miller and Gary Bernstein who will be joining us for the panel. Pete, when i saw i saw pete in afghanistan, i was visiting with a couple of people looking around for about a week in late 2011, and pete had volunteered, reuped and gone to afghanistan then to help train the ana, the afghan army, and i remember pete telling me at the time that one of the key principles certainly of our army, but certainly Training Foreign armies was keep it simple, stupid, you know, kiss. Thats a key military principle. Pete has organized this event in the opposite way. We have two speakers, comoderaters, and i think well make it work, and it should be an excellent event. Luckily, the quality of the people overwhelms the slight complexity. So heres what were going to do. Were going to have pete king speak for ten minutes, john stossel speak for ten minute, and then well have the panel, well ask judy and gary to kick it off for five minutes each and then have a discussion. The topic is liberty t and security. Its not intended particularly to be a debate. I think we have some diversive views, but it may turn out that we agree balancing security and liberty isnt as hard as some people say. Well have the discussion to see what we think, and these are people who have thought very seriously about this. Ill give a very brief introduction of pete king and john stossel and then get off the stage. Peter king is a veteran congressman from long island, before that was comptroller of nassau county. Really ive been in washington for over a quarter century im embarrassed to say, and one of those people i went there for a year, you know, took leave to see what it was like, and like everyone who comes to washington, sucked in and there i still am. Pete is one of the most thoughtful and, i would say, energetic and entrepreneurial members of the house. Hes been a leader on a bunch of issues, domestic and foreign, in particular on the Homeland Security and Intelligence Committee, a real leader in trying to not just call attention to the threats we face, but make sure were doing the right thing to deal with them. Hes been willing to criticize administrations of both parties when he thought they werent doing the right thing and support administrations, actually, of both parties when he thought they were doing the right thing. So i really am a big fan of pete king and very pleased that he took time out he came in from the island of new york, the opposite direction everyone else is going in august, for this event. John stossel is an old friend, a star, obviously, of fox, the Fox Business Network where he has that terrific show, stossel, its called n case you wonder who the moderator is or the anchor. [laughter] john didnt want to call it that, you know . He thought it should just be called whats going on in the world of business, but roger race insisted roger ailes insisted on stossel. I think thats probably true. [laughter] john has a long and distinguished career on abc, hes broken different stories, as you know, investigating various aspects of Big Government and big business. East also been an eloquent, been very thoughtful, i think, on some of these liberty versus security issues. As someone who comes from the liberty side, you might say, of the conservative movement, has been concerned but thoughtfully concerned, i think, about the questions of how do we preserve National Security and as well as make sure we are preserving our fundamental liberties. So let me call up peter king and then john stossel who will each speak for ten minute, and then well all get back up here with gary and judy and have a discussion. Pete king. [applause] thank you, bill. Thank you very much. And thank all of you for the being here today. I certainly look forward to working with the panelist, john stossel, gary, judith, and, of course, bill kristol who every week i open up the standard just to get my marching orders for the week. So thank you, bill. Also old friend in the audience, herb london, who i want to acknowledge. [applause] great race for governor, i guess it was 23 years ago, and hes been a good friend of me and my family, i want to say what a pleasure it is to see herb here today, and all the veterans who have done so much for our country, thank you. The whole issue of liberty versus security, i think it has to be looked at against the backdrop of whats happened since september 11th and the current threat we see right now is a vivid reminder of how real and constant the threat is. Im only going into the foreign aspect to put the domestic part in context. We have a president who spent the last campaign and most recently gave a speech in early may where he said alqaeda have been decimated, implied the war had been won and we could retreat to a pre9 11 mindset, saying there would be occasional thugs around the world who gives themselves an islamic title, but the fact is, alqaeda had been decimated. Now, it was intellectually dishonest for him to say that, wrong to say it in the context of a campaign, in the context of a major speech. But the implications of that are if you go before the American People and tell them, basically, the war is over, almost over or alqaeda is on its last legs, then it makes it very hard to defend one or two weeks later why the nsa program has expanded so much. When you want to get allies on our side saying how essential it is we stand firm on islamic trim of after the president says the war is almost over. And being in congress, i support the nsa program, but apart from whatever isolationist streak may be in congress, whatever bring America First crowd may be in congress, i think one of the reasons we have a hard time maintaining support is because the president has undercut us. He should be the one out there on national television, he should be the one out there instead of talking about phony scandals, he should be talking about the phony speeches hes made about islamic terrorism and tell us why the nsa program is so important. [applause] and that so were really up against a situation where the people who would be considered republicans, the conservatives, the rightofcenter people are defending a program of a leftofcenter president who refuses to defend it himself. But the country has to come first, and thats why we use that program for the basis for todays program, and its so essential. Let me just talk about privacy versus security. Really unlike even, you know, the communist menace of the 40s, the 50s and the 60s, we face an enemy which is overseas and right here many our own country x its an enemy which is willing to carry out attacks in our own country. During the cold war, the soviets were not going to do that. They knew that would mean allout war. But its not that easy for us just to respond. We cant blow up a country if we get attacked in times square. We have to maintain as much of a security level as we can without infringing on Civil Liberties. Now, with the nsa, for instance, let me just put it right up front, no american is having his phone calls listened to by the nsa, no american is having his emails looked at by the nsa. What the nsa does is collect metadata which means phone numbers of every call thats made, the time and the date. Theres no names, no ones listening to the calls, all that information is stored. And because there is this threat and ive seen the intelligence, i know people always get burned, ive seen the intelligence, and if you knew what i knew, im trying to say that, basically, everyone who has looked at this and analyzed it, this is, i think, the most precise threat weve seen since, if not since september 11th, certainly since 2006 when there was a liquid explosive plot coming out of london which would have blown up ten airliners over the Atlantic Ocean which would have killed thousands and thousands of americans. But this plot is very specific as to the enormity of the attack, the catastrophic be nature of the attack that they want to car aout. And there are also a series of dates in there. But as far as the credibility of the sources, the quality of the intelligence, it is there more than any ive seen in the last ten years. This is not that difficult to do. So as were looking to see if its in the middle east, thats why the embassies have been closed down. That, we think, could be the main focus of it. But it could also be worldwide. If theyre talking about something, an attack of this magnitude, would it be more so if they simultaneously carried out attacks in western europe and the United States . So theres, its very, very essential that we find out where this attack will be carried out. So lets assume, its all hypothetical but not really [laughter] that we have phone numbers coming from the middle east. We get a phone number from the middle east. We want to find out who that phone number has contacted in the u. S. , and that is when the metadata would be used by the nsa. They would take that number from overseas and drill it down into these millions and millions of phone calls and phone numbers that they have stored. And if you want to call it a lock box. We know al gore gave lock box a bad name back in the 2000 election when he was talking about Social Security, but these numbers are in a lock box. And they drill down on those numbers, and they will find if theres any number in the u. S. Thats been contacted by that number overseas, then they can go to that number, and be they can call whats called a hop, then they go to the phone numbers that that number has been in contact with here in the u. S. To see what the background is, to see if theres any other indicia of evidence and the individuals involved. Thats the only time the nsa is allowed to drill down on those numbers, when theres probable cause or actually a reasonable suspicion that its connected to an overseas plot. Thats what happened with the subway bombing of zazi in 2009. They can then see an overall question mat pick of combating terror who in this country could be involved in this current plot that we know is coming from overseas. That is the sum and substance of the nsa program, and i think its wrong when we have people who are supposedly on the conservative side of the fence going on television saying the government is snooping, the government is spying, the government knows who im talking to, the government is following me everywhere i go and they somehow attribute this to the nsa. The nsa is not the irs, lets make that clear. I wouldnt more a moment give these powers ott irs. But the fact is the nsa is probably under more surveillance which is ironic enough for a Surveillance Program under more surveillance than any other operation in our country today. Its watched on a regular, regular basis by the fisa court. And clients would agree at the Weekly Standard, i dont think we need a fisa court. I think the president has the inherent power as the commander in chief to carry out these operations. Thats what president bush claimed in early 2000. I think the reality is, though, were going to have a fisa court, and we have to find ways to work with it. In any event, its monitored on a regular, regular basis by the fisa court. For instance, if when they are tracking and last year there was only 300 times where they had to drill down on numbers in the metadata. If by some reason they make a mistake and put the wrong digit in, well, they have to do a full report on that, they have to purge everything they got from the 982 and file a report with the court just essex planing that one just explaining that one human error that was made. And my experience on the Intelligence Committee with the nsa was what we heard mainly over the last several years before any of this broke of course, with all of the allegations that have been made about security over the last 12 years, the nsa hardly ever come up. They were attacking dick cheney, attacking george bush with, attacking the fbi and others, nsa had pretty much been unscathed in all this. The only time it really came up as a matter of debate in the Intelligence Committee was people from the nsa coming forward and saying what a rough time they were having with the fisa court, how hard it was for them to get court orders, how hard it was to be able to follow up on the information they were getting. This is not a rubber stamp. This is constantly scrutinized. Its also scrutinized by the house and senate Intelligence Committees. I worry saying congress is keeping an eye on it for you isnt exactly a vote of confidence. But, seriously, people on the Intelligence Committee take it very seriously. I can tell you that this stuff is looked at very, very carefully. So i think we have to keep all of this in mind. I dont see any significant violation of Civil Liberties. I dont see any significant to me, if we have a balanced thought like with zazi in 2009, zazi, and this is one of those forest gump moments where you happen to be at a location. I was at mayor bloombergs home on a sunday night in september, 2009, he was entertaining the lord mayor of london, and Rupert Murdoch was there, all these powerful people, even tina brown was there, show you how powerful it was. [laughter] and ray kelly. So two irish guys, were not really going to mingle out with all the elite. So he asked me to go out into the street and talk with him. I was not aware until that moment of the zazi attack which was actually going to happen that night or the next day. Its the only time ive ever seen ray kelly show concern. We knew zazi was coming from colorado. We knew be everyone else was involved in new york in this, and this was a plot that would have killed hundreds if not thousands of people on the new york city subway system. And that plot was is solved or stopped to a significant extent by the work that the nsa did. Did the nsa do it by itself . No. It works with the other part of the overall mosaic, but it was a key component of it, and if it had not been for the nsa, we would not have known everyone involved in that plot, and we could have had hundreds if not thousands of People Killed in new york the next day. Now, i say to grow when you balance out whatever violation of privacy, i dont see it. Basically tracing an overseas number to a number here in the u. S. , the same information youd have in a phonebook almost, and the other side is saving hundreds of people being burned to death in subway tunnels, so with that, i know John Stossels going to come up here in a much more entertaining and charismatic way to give his side. Were maybe not that far apart. We may try and start a fight [laughter] in any event, let me just say its important here to realize is we have a real enemy that wants to kill us. This is not the core alqaeda of 2001 which was focused on the afghan pakistan border. This is alqaeda whether its in the islamic maghreb, alqaeda in iraq, alqaeda in the arabian peninsula, alqaeda which is operating in libya and syria under other names, alnusra in syria, this is an enemy that wants to destroy us, and we have to use every weapon at our disposal. We can have changes, we can have nuances, but the underlying premise should be we are under siege, and if we let our guard down for a moment, we can be destroyed. Thank you very much. [applause] actually, you were pretty entertaining. [laughter] thats about one of the best descriptions ive heard about what the nsa does. And im a libertarian. Libertarians have been very skeptical. You say no one is listening. Well, why would i believe you . Why would i believe my government . You say theres been no significant violation of civil liberty. Well, actually, ive looked for em for my show, and im in trouble with libertarians because i kind of agree with you. I cant find em. And libertarians talk about this terribly dangerous slippery slope, all this secrecy, the vastness of the data, but i cant get worked up. You say no ones listening to my phone calls, i already assume that media matters is listening to my phone calls. And my boss at fox can legally read my emails and listen to any call i make at work, and i give my information voluntarily to facebook and google. Its out there. So even if the abuse was happening, why would that be such a terrible threat when lives are at stake . So im being called a lino. [laughter] libertarian in name only. You are a traitor to the libertarian ideals. Couldnt even finish your article on the nsa, im disgusted. But, im sorry, im not a good antagonist for the other speakers tonight this morning. [laughter] i dont even know what time of day it is. However, i am, do consider myself an expert on safety and relative risk. And here ive gotta Say Something is off today, and i know im in the minority opinion on that here. The congressman talked about the real and constant threat. I did a show years ago based on my experience as a consumer reporter called scaring ourselves to death, and i think the Homeland Security state is scaring america to death. Yes, there is a real and constant threat, but how big is it . The d. Of homeland the department of Homeland Security proudly was invented after 9 11 to oversee 22 existing priest be agencies previous agencies. They more than doubled spending. Are they more efficient . I doubt can it. Earlier it was talked about reforming the bloated bureaucracy, i think thats like teaching a cat to bark, it cant be done. When its this big, it will be awful. The pentagon does have a 26page brownie recipe, as an example. [laughter] but as a consumer reporter, my specialty was relative risk. Ht this home to me was on 20 20 years ago when a producer came in with a story on trial lawyers, weve got to do a story on bic lighters. Theyre expose exploding in peoples pockets. And this was true. Ild four people over the past four years, that many many more had been horribly burned. But i have gotten sick of taken stories from the trial lawyers. I had a list of what kills people in america and and the law, and i could point to that and say, okay, ill do bic writers, but lets do plastic bags first or bathtubs, they kill 800 americans every four years. Its a big country. If we scare people about the abilities, they wont about the ant, they wont Pay Attention when the elephants come. He called me callous, and they did get somebody else to do that story. [laughter] when i now look at the 9 11 threat, war is the friend of the state. Crisis is the friend of the state. In the economic field, we had a credit crunch. The people in power said we would have economic collapse if we dont bail out the banks, if we dont let a few men spend a trillion dollars of your money. Cry us grows the state crisis grows the state. Thats an enemy of freedom. 3 be ,000 people died on 3,000 people died on september 11th, more than that. Its been 12 years. Lets assume it happened every ten years, 300 deaths a year, that would be horrible in america. But we live with risk. 35,000 depths on the highway, 100 depths today, odds are. Be 3,000 americans die in house fires. A 10 Smoke Detector is a wonderful thing. Its a place to spend money. A thousand americans drown. The media gets it wrong. The media warns you about sharks. You ought to worry about drowning. A hundred americans are killed every year hitting deer. Where does terrorism fit in to this . Nothings, almost nothing has happened in the years. It may happen a, i dont presume to know. The rest of the panel is much more informed about this than i, but over my career ive looked at scare after scare thats led to the growth of government and limits on flee. Com. Certainly freedom. Certainly, massive amounts of money is sucked for the war against law chemicals, danger in the grass, was the feature on 20 clash 20. We forget these scares a week later. The terrorism scare stays with us. The cancer epidemic, food additives, pesticides. We banned ddt which has killed millions of people around the world because ddt a wonderful insecticide that stops malaria and hurts no one. It was a lie what silent spring claimed about it. Now were told plastic bot be les bottles are killing children, that global warming, says the left, is the the biggest threat to america, bigger than terrorism. Kids are not allowed to play ahone anymore because the media hype the risk of kidnapping which almost never happens, stranger kidnappings. Plane crashes. The plane crash is hyped by the media, and youd say it has to be. If a plane hit if a plane doesnt crash, thats the amazing miracle that we should cover, that thousands of planes take off and land next to each other and dont crash, but when the plane crashes, we go crazy saying were live here at the scene, we dont know anything, but well keep telling you we dont know live for hours. [laughter] they used to get me to do stories about the least safe airlines, and i would refuse because thats statistical murder, in my opinion. More people drive to grandmas house, and that kills people. Relative risk ought to be paid attention to, and i think we have deeply lost that in the Homeland Security state. One good example is the tsa. Now, before the tsa was created, we did have these private contractors who were paying people minimum wage letting people on the airplanes. They obeyed all the governments rules, the small knives were legal under the faas rules, the unlocked cockpit doors, they were legal. But with after 9 11 Congress Said this isnt good enough, we have to have in this run by government. Tom daschle said you cant professionalize if you dont federalize. That made sense to me at the time. We were scared. When youre scared, its hard to make good judgments. So now its 12 years later, we have the tsa. Hows that working out for us . So weve all had problems with it, but you could say maybe its a necessary thing to go through for safety. We volunteer to fly, we should expect some discomfort. Its just part of the trip. Except the law did allow some cities to opt out, and San Francisco did. It was the only big city to do that. So recently i sent a producer to San Francisco to talk to passengers, whats it like going through this privatized Airport Security . And they say it was weird. The screeners, theyre friendlier. And it was faster. And the tsa tests them now and then, and they try to smuggle in fake pipe bombs and so forth, and they caught em 75 of the cases in San Francisco. In los angeles they found them in 25 of cases. So the private screeners are friendlier and faster and better at their jobs. Be now, why is that . Well, its because its private, its the way its done in israel. Government support, private contractors competing. You can fire the contractor. Cant fire the government. And the contractor knows if he does a good job, he may be get hired by other airports and get rich, selfishly. So he does things like give workers a day off where he has contests, who can search the luggage fastest . They play music, they give out awards. Theyre better. So other airports hear about this, they want to opt out. One upgy by Glacier National park in montana where the tsa is in charge, and people dont want to go to Glacier National park in the winter. They want to go in the summer. But government being government, tsa maintains Staffing Levels equally all year round. So in winter the tsa stands for its initials, thousands standing around [laughter] and in summer there are long waits and some people miss their planes. And the law says if you ask the department of Homeland Security, you can opt out. Twelve other airports ask, Homeland Security sits on these for over a year and finally says, no. We dontty this is advantageous to the federal government. Wouldnt burger king like to say that to mcdonalds . My point is, the bureaucracy grows. You cant teach it to be efficient. The growth of the Homeland Security state is a great threat to our Economic Future and our freedom. Terrorism may be a threat, but it is one of many, and we should keep it in perspective. Thank you. [applause] oh, wait, im supposed to introduce the next speakers. Such such a narcissist that i just [inaudible] okay. And then we should all, i guess, sit up here. Judith miller is one of the speakers. She is a fellow here at the Manhattan Institute and writes about the balance between security and Civil Liberties. She won a Pulitzer Prize for her reporting at the New York Times on terrorism. Gary burnson is an air force vet, has a long cia career, led several counterterrorism deployments including our response to the east africa bombing and 9 11. And he was commander of all cia forces in eastern afghanistan. Should we all sit down and then [inaudible] so lets yeah, since we havent heard from judy and gary, lets hear from them first, and then well have a discussion. With okay. Thank you very, very much for coming here morning. And i want to thank pete [inaudible] and bill for organizing a very timely and important conference on a crucial subject of interest to everyone in this room. And i also want to thank all of you who are serving or have served for your service. We cant do that too often even on a sunday a monday a tuesday in august. [laughter] i, too, came as pete king did from long island in this morning, so i vaguely know what day it is. [laughter] there is no spying on americans. We dont have a domestic spying program. I am quoting the president of the United States as he spoke to a usuallyreliable source of information and where Many Americans get their news, im speaking of jay leno. [laughter] i didnt, i didnt actually see it because i was in bed, but with i read the transcript, and those were the two assurances he gave us about the National Surveillance agency. Well, im sorry, mr. President , and with all due respect to someone i greatly admire and do trust, pete king, i am in the skeptical camp. I remain skeptical because the president said a number of other things in this interview which i encourage you all to read. He said, first of all, that the reason we need this program as it is, in its current form, is that after the boston bombing Law Enforcement needed to be able to see who the two tsarnaev brothers were talking to, whether or not they had been speaking to anyone here in new york, for example. They wanted to roll up those people, get to those numbers quickly. What troubled me was the reference to after the boston bombing. My supposition is that if the tsarnaev brothers had been live anything new york, there never would have been living in new york, there never would have been a bombing because they would have been watched. Someone who had gone to russia who had a report from the russians that he was being radicalized and, in fact, was a radical would have had more than an fbi interview or two to satisfy the curiosity of the nypd. Dealing with something and rounding up other people on cell phone numbers and emails after an event is not good counterterrorism work. I was also skeptical because he said he was talking to congress about changes in the fisa program and in the fisa oversight system, he didnt actually say that he was willing to consider any or endorse any. And i think change and here again im going to disagree with my friend, pete king i think change is long overdue. Theres no reason why the head of the Supreme Court should be appointing every justice on the fisa court, a court which has never turned down a request for information by the government. It had sent a couple back for amendment, for changes, but basically its a rubber stamp. Theres no reason why people on the Intelligence Committees, house and senate, cant get summaries of the cases and why we cant know more about kinds of cases that are being brought to that court. Im skeptical because i know that with the best of intentions governments gradually accumulate power. And why i might trust pete king and even president obama to respect the balance between Civil Liberties and National Security, im not sure im going to be able to trust the next president. Thats why we have a constitution and a bill of rights. And im speaking to you today as someone who considers herself a kind of National Security hawk. I endorse the patriot act. I thought we needed it. I think we still need to do more to protect american citizens. I dont think guantanamo should be closed, because i want to be able to take men who have just been indicted, i want to be able to take him somewhere thats not in the United States where i know he can be safeguarded for trial. The terrible thing about this indictment is that we dont have him, and now that weve indicted him, we are not likely to get him. Unless he has an unfortunate Traffic Accident in libya, which could happen. [laughter] but these are the problems with the way in which the president has approached National Security. It is, as pete king says, schizophrenic. Finally, im skeptical because i know firsthand the enormous power of the government when it turns and focuses on an individual. And im not speaking of having to go to jail to protect a source, im speaking of the search and the subpoena and the ultimate delivery of my telephone records; home, office, cell. Shortly after i got out of jail in connection with another case that the government was investigating. I know what it feels like to have everything looked at, and i dont think i posed any kind of threat to National Security. So finally, i want to be assured that the reuters story that said the Drug Enforcement agency which had requested and had gotten access to the nsa records is not actually spying on me, i want to be sure that the New York Times story is not correct when it said that half a dozen other agencies had requested access to the National Security metadata to pursue various crimes. I want to be sure that even if the nsa is not spying on me, another branch of government may be without sufficient oversight. And thats why i think the time has come for a look congressionally and in the public at this balance between what we do to stay safe and what were doing to protect our Civil Liberties. And i welcome this debate, and im delighted and honored to be here with such esteemed thank you. [applause] thanks, judy, for those very thoughtful remarks. Gary . Fifteen years ago today was the attacks in east africa where our embassies in nairobi were attacked. A lot has happened in the last 15 years. On that morning of 7, august, 1998, no one thought that bin laden was a threat. Actually, the bin laden unit had been ordered to be shut down a week earlier. Mr. Michael scheuer had fought valiantly within the operation to keep that going. No one had seen anything, they told him he overplayed it. Bombings went off. I was the chief of hezbollah operations. I traveled out to east africa and the subcontinent. We captured the individuals, and showier got new legs. And much of what he would do would help us in afghanistan in 2001 when we were in the invasion. I have fairly [inaudible] on the collection of metadata. I am am not a supporter of the collection of metadata in the way they are doing identity doing it right now. Where there are opportunities for abuse and humans involved, there will be abuses. And i think if you look at the bill of rights and you look at the fourth amendment, its very easy to think, well, theyre violating the constitution. But if you look at the law which is maryland versus smith in 1979, it was a case that stated that there should be no expectation of privacy if there is a collection of the pen registry, and that is the numbers, essentially, from the phone company. So you have a constitution, and you have a law thats sort of at variance with each other right now. What i would say is that i would feel much more comfortable, and i think those who have sort of a libertarian streak would be more comfortable if we just had the phone Companies Hold the data for five years, the government pays to hold that data, and when we want to go into the data, youve got to have one perp in there. I dont think we should lose that data. I agree completely youve got to have that data at times. The question is how cumbersome are will this process be because sometimes you need to move quickly. Thats correct as well. We need to have a balance here, and i think the balance is the point that i just stated. I think right now what were looking at, United States is looking at are two things, two factors. Right now you really do have the alqaeda 2. 0 coming at us. Many of these organizations that are being led, these alqaeda affiliates are led by gitmo detainees, people we had and people we released. We had two administrations, a republican and a Democratic Administration that were releasing these people. Shame on them. Shame on them for letting these people go. [applause] those are international organizations, and those are the taliban militant organizations operating along the northwest frontier province, and theyre attacking our sons and daughters who are now fighting, some of us fought earlier on. So alqaeda is a problem. This is a decadelong problem. And its something that weve got to be prepared for, weve got to balance, of course, liberty and security. But the other piece we need to be mindful of which no one is speaking about is a resurgence of hezbollah, the shiite organization that attacked us in the 1980s and took many hostages. After 9 11 they stepped back because they saw the frosty with which the ferocity with which the United States went after the taliban and iraq. It took four or five years for them to get their bearings, but during that process hezbollah shifted from doing terrorist organizations to creating maybe one of the largest criminal enterprises on the planet. They are receiving between 3 400 million a year from the iranian government, and they have increased their capacity in crime and terror. About a year and a half ago, the iranians and hezbollah made a decision together to reinitiate, and they have made a number of efforts to conduct terrorist attacks. Many of them have failed because they lost capacity with a lot of the people. Hezbollahs back in the game. Theyre larger, and though we criticized the Clinton Administration in the 19 t 0s for being a little bit too Law Enforcementcentric, were going of to have to use the Law Enforcement model against hezbollah because theyre a large criminal organization. Just like we might not have been able to convict al capone for murder, but we were able to get him on taxes. Were going to have to take some of those guys off the table, and maybe Law Enforcement well have to use. So were going to be something into a new phase in this struggle, and its going to be two phases. Both hezbollah and alqaeda, the new phase, the new groups of these simultaneously. And the third part of this is were going to be doing this in an environment where theres less resources. Economic security is very, very important. If we cannot get our economy organized properly, well not be able to feel the forces whether they be military forces or National Security forces in terms of intelligence that we need to defend the United States. Weve got a lot of challenges. I think there are some compromises we can find to get ourselves through some of these issues that were having right now, and i think that ultimately in the end, you know, we could put ourselves in a good position to defend ourselves. Thank you. [applause] you hear me okay . The particular point that judy made and then we can all [inaudible] i think its lets get off maybe the Legal Company which were not going to resolve here and exactly how the fisa court might be reconstituted. Im also struck by the point that judy made, are we depending too much on nsatype assuming that thats going to solve our problems and has at the federal level at least, unlike the nypd, have we short whats the right way to say this . Have we not done enough on some of the human intelligence both here and abroad . Is the problem with nsa not that its necessarily going to violate our Civil Liberties, but were actually following things better than we can or in the balance of things as a matter of counterterrorism, not as a matter of constitutional law . Whats your judgment of how were doing in general and is the nsa part both necessary and, also, are we depending on it too much . Yeah, i think the nsa is necessary, but its only a part of the overall mosaic, and nothing beats having real human intelligence. The nypd was mentioned, unfortunately, that is not being done at the national level. The Boston Marathon bombing should not have occurred. I dont believe as judy said, it would not have occurred here in new york. The fbi were told by the russian government that the older brother had been radicalized. Theres no reason to believe the russian government, but out certainly warrants investigation. The fbi spoke to the older brother, his mother, his father, his wife or somebody, they never spoke to anybody in the mosque. Under the attorney general guidelines, the fbi is not allowed to question anyone in a mosque. Now, how are you going to find out if a person has been radicalized in a mosque unless you go to the mosque . Also, the fbi never told the Boston Police department that they had this information on the older brother. And yet the Boston Police had four detectives with top secret clearance on the jttf. And they were under the impression they were being told everything. They were never told at all about the older brother. Now, if that had been here in new york, first of all, because of ray kelly, the fbi gives the nypd information whether it wants to or not. [laughter] i think its 275 Police Officers on the jttf. Not four like in boston. Mike in the back, youd have a better idea, but its way up there in the hundreds. And the nypd does have sources. They have sources everywhere. And the Boston Police have a great commissioner, commissioner davis, they also have sources everywhere. If the fbi had gone to them, they would have found out the older brother was thrown out of his moss being in february of last year because he had become so radicalized. And yet the fbi didnt find that out, the boss Boston Police had never been given his name. You have to put Political Correctness aside, you have to realize that islamic terrorists are going to come from the islamic community. The whole list of ethnic groups, we cant be so politically correct as we interview the swedish grandmother before we interview the islamic grandson. The fact is we have to use common sense. The fbi is not allowed to because of the attorney generals guidelines. Comments . What about, john made the point about tsa, maybe ill ask you about that. How much, i mean, those of us who want to defend a strong, hawkish view on National Security both at home and abroad, how much should we be for reforming some of these major institutions . Like ten years later is Homeland Security ripe for a fresh congressional law . Tsa, if its true they have to have the same number of people in the winters or the summers or theyre not privatizing when they might, how much of a problem is that . Theres a problem. I believe we do need tsa, but i do believe that tsa especially under this administration has not been sufficiently managed, its not been maybe theres always going to be waste, theres always going to be abuse when you have a federal bureaucracy. The fact is much more could be done to keep it under control, and its not. Weve had real problems at newark airport, for instance, gross negligence there. And theres overstaffing in some areas, understaffing in other areas, and tsa needs much, much tougher management, no doubt about that. And then this is the whole question we do have to have something there. But to me, this should be more of a competition between the private and the government. Homeland security should not hold back when these airports want to use private security. They find excuses not to do it, and thats wrong. And the examples that john gave are on target. I cant quarrel with him at all. But again, the media reacts differently. When i was chairman of the Homeland Security committee, we passed legislation last year out of the house anyway which basically would make it easier for private airports to use the tsa. Daily news accused me of selling out to private security companies, to bringing in the representacops. Rentacontinues. Not that many people in government want to take that on, so they let the status quo go ahead. But john and i are basically on the same page here. Defend the media, john . No. [laughter] im ignorant on the subject. I would just love to have the panel explain to me how does it work that we have five million americans that hold security clearance . How do we expect to keep anything secret . And secondly, where are the bodies with all these people wanting to murder us and when you can make a bomb in the kitchen of your mom, and the internet is making this easier every day, why hasnt it happened . Why do more people die in bathtubs . On the first question, well go back to pete and gary on this as the intelligence one additional one footnote, gary, to the question which is what about snowden . Someone like me who generally is inclined to defend the agency and other related parts, how could that happen, and have people been disciplined by that . One has no impression in the press that any pure rat has been called into account never should have been hired, never should have been cleared. I understand theyre investigating the organization that did the clearance on him, they didnt complete the process. The problem is the Intelligence Community whether its nsa, cia and other components have tried to cut costs by hiring contractors because contractors are cheaper than longterm people who have careers because they have retirements and all that goes with that. Its a question of efficiency versus security, and we have lost terribly on this because the loss of the intel that snowden has surely provided to the chinese and to the russians whether he wanted to or not, they would have imaged his hard drives, its probably worse than what hanson and Bradley Manning did combined. The president , you know, the greatest understatement i think in the field of intelligence that this guys some young hacker. Holy cow. This was massive losses that are occurred, and theyre probably going to need a 500man task force just to review all the intel and figure out what has been lost. Because whatll happen now, our opponents are going to take that stuff, categorize it by country, theyll try to figure out who the sources of those intelligence and understand something, theres human intelligence from the agency that gets transmitted over nsas lines as well. Theyll be able to distinguish what that is. So its not just the internet i mean, the signals intelligence stuff at risk. Theres a lot of human at risk here in this process. This is horrific. And it occurred because they were trying to go on the cheap, they were not acting efficient they werent acting efficiently. Weve got to get away from that model. We need to be more like jewelers and less like walmart when were doing the intelligence and counterterrorism business. Its a large problem. And they need to have a down size not because of cost, but because of security. We have too many people inside the box. Judy, youve covered this for a long time. Whats your sense . Is it worse than it was 10, 15 years ago . In terms of security . Yeah, in terms of clearance, in terms of the kinds of things garys talking about . Society in a way that someone dying in bathtub does not. And its not just a question of numbers, and i think the reason were so much safer today, because everything that the Bush Administration did and the Obama Administration continue to do while talking about transparency and not doing it is actually degraded and just decimated [inaudible] that main group. That was the group that i followed and that gary followed that was really serious about getting a weapon of mass destruction. We tend to remember 9 11, we tend not to focus on the anthrax attack which was less than two ounces of anthrax in letters that shut down the capitol, changed the way we get our mail, killed five, infected 17, put 100,000 people on sip roll in this country, two ounces. Well, the terrorist groups like hezbollah are very interested in weapons of mass destruction, and we forget that. Were not just talking talking e boston bombing, as terrible as that was. Were talking about groups that may be incapacitated for the moment but which will regroup if we take our eye off the ball and continue to search for the most effective way of killing the largest number of us. And thats why when pete and john talk about the threat, yes, the threat exists, and its less now because of all of the measures weve taken and all of the money weve spent. But if we stop doing that, my problem is i think we can do it in a way that preserves Civil Liberties which were now in danger of sacrificing in the name of that. We dont have to, we just have to do the other stuff that we know how to do better. Id like to add one thing. The single greatest threat facing the United States is biological terrorism, worse than anything else. Its insidious, its silent, it comes in, and it will present a whole new set of challenges for us. And so wed be better off with much greater capability on that and take a loss of an aircraft, you know, and defund one Aircraft Carrier battle group to position ourselves to defend ourselves. Let me tell you, i know a lot of people like to complain about the post office. Dont close the post office because if we have a bio problem in the United States, were going to deliver the medicine to all of you with the post office. You dont want to be going to gymnasiums or cafeterias to be getting this en masse. The post office in the United States may be something that saves a lot of lives in the end. You have to think about this sort of struggle in different terms. Now im [laughter] how about ups . Why do we need the post office . If we overreact i mean, Osama Bin Laden was caught on tape saying he wanted to bleed america to the point of bankruptcy. And if 250,000 people take ciprol because there are tiny envelopes in washington, d. C. , this is our own overreaction. Its selfdestructive. Homeland security and, again, i think the total budgets about 40 billion. If it had not been combined, maybe it would have been 32, 33 billion. So were not talking about that large amount of money. In the overall picture, it has not been that draining. Also you said where are bodies . Well, if we hadnt stopped the london explosive plot, if we hadnt stopped the times square, the new york subway bombing, the actually, we got lucky in the michigan one, theres three or four thousand people right there, thats just three attacks im talking about, and there are any number of others that have been stopped. And again, i just wish the rest of the country used the nypd as the model because theres so much cooperation. If somebody does go to buy certain types of explosives, certain devices, that is told the nypd, and they can follow up on it. [inaudible] i would just say 3,000 bodies is terrible, but thats worldwide when every year 3,000 die in house fires in america. There was a successful dirty bomb attack, though, it could neutralize an entire city. One dirty bomb going off in times square or Lower Manhattan or down up to chicago or boston would cripple the economy, besides killing any number of people, and i think bring our National Economy to a halt which would cost hundreds of billions of dollars. The other thing, one never knows what would have happened or what could have happened if we hadnt done certain things. And that argument is abused at times, but i guess i am struck by that. I do think we my personal view, and ill jutte step out of just step out of my moderator role s that we do underestimate the degree to which weve helped others around the world not just by Homeland Security and internal measures, be but by a forwardleading defense policy. And what worries me is the combination of some problems here at home and the general sense abroad that were in retreat and the cuts to the Defense Budget and the [inaudible] and the drawdown in afghanistan regard he is of conditions on the ground regardless of conditions on the ground. Any one of these things finish. [inaudible] what should our syria policy be, the appropriate Defense Budget, how the nsa should be set up. But if you look at them in isolation, i think its a little misleading. Ive talked to people, im sure judy, an ambassador from the middle east, pretty friendly ambassador from a pretty friendly country, none is really fully friendly, but wants the u. S. To be strong and wants his own government to survive. Ive known him over the years, and hes a very calm, measured and experienced guy and genuinely worried. You do not understand what it looks like over there. It looks like you guys are not serious, all you guys want to do is get out, huddle down, shelter in place, and the Embassy Closures can im not which im not challenging, the image of that is closing 32 embassies from, what, all the way from west africa to bangladesh, i think, and then extending the closure for a week . And these are well fortified one of the problems is theyre like fortresses in all these countries, and were closing those . We, the United States of america, cant defend them adequately . I mean, the image that is out there is bad, and it does become a selfsuggest selffulfilling prophesy. Were a very strong country, but i do worry we rook like a relatively weak horse going in the wrong direction, and that, for me, makes things dangerous. [applause] all of us have Different Things wed like done, and for the most apartment under bush and cheney, everyone was operating in the same direction. Under president obama it is schizophrenic, and i thought it was disgraceful when he had the investigations of the cia interrogators so much so, im not sure if this is still through, but for a number of years every interrogator had to buy personal Liability Insurance to protect themselves against the informations in their own government. Now, with all the hypocrisy we have in the world, during these last few days were fearing these attacks, if some operative got hold of some islamist and held his head underwater to find out where the attack was coming from, everybody would say it was great the first few days, and three years from now the guy would be indicted for violating international haw or committing war crimes. What we do overseas, we should give our people, i think, a lot more leeway than they have right now and not have to worry about eric holder looking over their shoulder. Judy . Just one comment and one question for pete king. As far as the president s statements to jay leno when he was asked, well, are you telling americans dont travel this summer, dont go to the middle east, he said, no, no, all im saying is you should get in touch with your embassy and exercise be caution. Excuse me, he just closed the embassies. So, you know, once again schizophrenia writ large, and hes rarely the reason he goes on jay leno is that he doesnt like to take really tough questions from people who are going to follow up on him. But, pete, i want to ask you a question about the issue i raised in my opening remarks which was weve had these two reports that while the nsa is not, quote, abusing the metadata that you believe is essential and john believes is essential, what about these other requests from the dea getting access to that, what about the six other agencies that the New York Times wrote about that said theyve also gotten this access to this information . When these embassies are closed they are not completely closed. They are closed to the public. Officers are inside their working. We just dont want 1000 people out in the street waiting for a visa when a car bomb pulls up. 200 people died in kenya at that bombing. They were not american. So you have a responsibility sort of with local governments. Should they close all these places . Holy cow, they over did this and this was for politics. This was for politics. I was shocked to see him in the yesterday they said the specific intercept, they name the specific people, im horrified. Taste on that specific intel they will close 20 embassies . Overreaction. Understand when embassies are closed, american citizens can still get them. You call, they will let you in. The Embassy Offices are in the property. Its just close to the public. People are coming and going, believe me. They are not shuttered and theyre not all at home afraid. People are still operating. [inaudible] the state department issued a travel alert, not a travel advisory. Its really unusual. Really unusual for them to do actually. I do think it was a reasonable question today, shouldnt we be worrying about people traveling . They dont want to destroy tourism. What does that mean . One reason the state department doesnt issue travel alerts very often at all, very few, especially of this breath, local governments haiti. They make representations to the ambassadobastard and say youreg our tourism in the area. If we do a travel alert europeans have to follow up. They wont come but its not clothing for the state department to on the one in. On the one hand, they really thought this was a very serious threat of the magnitude we havent seen maybe sense, and a decade even. On the other hand, the idea that people here have said, this administration, their message on one hand we really, really, really are worried and is a very cities threat of the present think its appropriate to go on jay leno. Percy goes to camp david when the thread is supposed happen. He plays golf. And then he goes on jay leno and sort of, go ahead and travel. Either its a very, very cities threat, or its business as usual. We go about business as usual. The president went to camp david and played golf. Right. Thats it. But there were two threats by the state Department Warnings issued in 2011, the anniversary of the attack, and when we killed Osama Bin Laden. Right. Think i read that is. Doethere was a one day, september 11 specific threat which made sense, you kill bin laden, you expect something then the next few days. This is pretty unusual to a half a travel alert. But embassies are closed quietly and have been the last couple of days. This is just politics. To show, to convince the American Public that theyre on top of things. Its like a painful effect for our allies. We have time for a couple of questions. I think theres a mic. Im supposed ask you to go to each of the question, is that right . If you could make your way to the mic we will take questions. Can anyone hear me . Great. Ill test it again. Let me just i apologize. Thats better, okay. There was an article in National Review a few weeks ago by a commentator who had done an Economic Analysis of these issues which i thought was interesting, slightly different perspective. And his observation was that the cost of a about 20 million per life. If you compare the cost of our establishment, defense establishment, comes out to about 20 million per American Life saved in these efforts. And that the nsas program, by his calculation it was costing in the range of around 100 million per life saved. So his point, apart from the very important issues the panelists raised was that is important to do a costbenefit. Its important to see what methods are most cost this Cost Effective, which i think is in part sort of the point jon and judith were making in this discussion, that causes are important. Judith bennett probably said well, the question is what is the panels reaction to that kind of analysis what is the appropriate do the analysis . Is it appropriate is that nsa is frankly too expensive in the context of other efforts that may be more effective . The most Cost Effective this human intelligence. You get a lot of bang for the buck. But you need all of this together to you need a mosaic, signals and intelligence, reporting from the state department of all these things from dod, you need altogether. But the least expensive this human. The other thing is you dont know how many lives are saved by the program. How many lives were saved by having more Nuclear Weapons we need presumably in the cold war . I mean, thats why i think some costbenefit, if youre in government you have to budget your resources into some kind of costbenefit analysis. The tricky thing about terrorism, generally the tricky thing about Foreign Policy is you dont know what dangers and pricing human catastrophes you of heard sometimes by spending a lot of money or indeed by sacrificing american lives in some of these efforts. Thats where i think the pure Economic Analysis is tough and do them when youre doing they consume analysis where i think you can make a more stricter fda will describe a side effect but it will say this number of people. The epa values ally for 6. 9 million they have no clue either. Spin if i can add, that nsa is more than just tourism. Its a dangerous world with other major powers and countries in the world, and nsa essential to our overall defense as well. I like to bring this to a local level. Like to bring this to a local level. Judy has written a great deal about the nypd. We are facing an election in which mayoral candidates on the democratic side have all committed to stopping the stop and frisk program, and i wondered if congressman king and judith in particular could comment on what they think the impact is going to be on the safety and security of new york city. I think those allegatioallegatio ns by the Democratic Candidates for the new your times or the Associated Press were absolutelabsolutel y painful and disgraceful. The nypd program of countercharges program should be a model for entire country. Its absolute a necessary, its needed. And if anyone wouldve told us septembeseptembe r 12, 2001, ma that the nypd wouldve stopped all these attacks over 12 years and result of that would be the next mayor wants to dispel the program or cut about i think would crazy. The program is essential, necessary. Ray kelly deserves every possible recognition he can get for what hes done. [applause] just a brief note on ray kelly, and that is, he, if they mayoral candidates are perceived to me doesnt seem likely to be asked to stay on. But i think everyone of them ought to be asked specifically whether not they would keep ray kelly on his mayor. He should have been mayor. [laughter] police commissioner. But beyond that, you know, kelly was a candidate for several high level posts in washington. And apparently it was his stop and frisk activity and the endorsement of the program, and also his muslim surveillance, radical muslim Surveillance Program in new york which disqualified him, and i think that says a great deal about the administrations mindset, which is unfortunate. Next question. I addressed my question to those who say that taking the storing of the telephone data records out of the nsa and allowing it to stay in the phone company, will wait leaking to the fact that we have such a the tedious society the tedious society that is so easy for some to going to court, get a left wing judge if you will who will give a state and an injunction and does prevent the Immediate Availability of that information, if youre allowed to remain in the phone company mix . Fisa court, a special court. Youre dealing with a fisa court and the judge that makes the determination you are talking while its in the possession of the government on the nsa. What im talking about is you are dealing with is the suggestion that yo judy may come everything somebody else joined in, of taking it out of the nsas possession and allowing it to remain for five years in the phone companys possession. You are taking it out of come and putting it into civil courts where the phone company is subject to an injunction. General alexander and the others and as a have discussed the overall issue. They have no problem with the phone Company Holding on to records. But again, their concern is with have absolutely immediate access that they need to the issue you raise is an added question regarding civil courts, somebody getting an injunction, restraining order or something, delaney. The one thing the nsa says they have to have instantaneous access to the records. They said theyre willing to work, a way that it can be kept in the private sector would be absolute assurance do have instantaneous access. I dont know if that can be done. The nsa is not they just want to know if they have access. Instant access. Just to correct the record, i did not endorse that suppose was another panelist at the made up my mind yet about the specific recommendations. I will be interested to see what hearings produce and what various experts say about where the balance should be and what should be taped. Right now im focusing a lot on transparency and the appointment of judges as opposed to he keeps the records and where. Thank you. One final question. Some people in new york work, dont they . Maybe let people up to make one final comment. Comment. There was a comment made over 5 Million People in the United States with clearances, and why is that . First of i to clarify if they need to know basis to have access to any classified information. I felt clintons 1986. I cannot say the last time i was like top secret document it is based upon the fact im working in a clear facility and i must be cleared to work there. So my question is to gary and also to judith, do you know ed snowden that he full scope polygraph done to work at nsa . The reason im asking, people dont understand, you have to go through a lifestyle polygraph to get in there in a counterintelligence polygraph. If he had that under surprise because it wouldve thought it wouldve detected this mouse. And also to judy, you state you felt that are too many contractors with clintons and i want you to clarify why you trust a Government Employee more than a contractor. Just, i dont know, must have had at last top secret special i anointed with had a lifestyle polygraph which is more sort of interested thing but i suspect he did not. And i dont have any other comments on what i said. Snowden should never have gotten clearance in the first place in the clearance pass along as h you would from job to job. Several instances they found out about them as he was leaving one job going to the next. Thats an inexcusable and also in the way he was able to get access which shouldve been anticipated and were not the hopefully ill be corrected in the future. Finally, just final comment to i would say as we go forward what i found, all of us agree that we have to stand together come and is so important public life today, we have politicians of both parties, somehow the in is his purpose is to spy on innocent americans and find out where the president ial candidates are going to that is wrong. Lets find ways to make sure we can protect it but not thinking the nsa is more dangerous than al qaeda. Hes very sensitive about the nsa fun at work future president ial candidates are going. I think the reason i just said we shouldnt be using contractors, is Edward Snowden. Added dont think he wouldve gotten a government clearance. Top secret clearance. My understanding is its 1 Million People who have top secret clearance. 5 million who have secret [inaudible] but in general, right now we were just told that i just read in the press that some people are being polygraphed at the cia once a month now, issued polygraphed over a leak investigation. Seems to me it wouldve been a lot, our time and effort and money wouldve been a lot better served to have the Edward Snowden of the were to work for contractors, or for the nsa, given that kind of scrutiny rather than spend it on people who may be talking to the press. Snowden did get his clinton when he was with the cia. And i would just expressed skepticism at your point of the contractors on the problem. A Million People of access and the Government Employees, that means as mitt romney but half of them are not. But mitt romney said im going to shred the government. But by attrition. They are afraid of fire anybody so you would have deadwood, and many people knowing the secrets. The cia missed the collapse of the soviet union, the fal the ff the shah, arab spring, almost none of these people speak arabic. Gary does not speak why do we trust he speaks farsi. [laughter] john will disappear shortly. [laughter] its been good knowing you, john. [laughter] i just remain skeptical that all, i would love it to have it explained to me how this line works undoubtedly going to keep us safe. Spent i do think we are happy to be cosponsors of the been. This is been a good discussion from an interesting one. It shows these are difficult questions which need to be thought through seriously with Civil Liberties, effectiveness, tradeoffs, the contractor thing was not crazy, the notion that the private sector could do a lot of things better. But then, of course, things have gotten out of control. When the nsa has to do a lot more data than they were used to. Bradley manning, thats crazy for private with the think not even as his clearance was able to get access to all that stuff. It was crazy that people could look into other things. So these are really tough choices of governance i think, and i do think we need serious people, Weekly Standard and congress and the media and elsewhere to really think through these questions. Im personally thinking its an interesting question, a thoughtful discussion. Tried to think these issues through and not just settle on sound bites. And you all for coming. I think pete wants to close this off in a timely way. We didnt keep it simple but we did keep it on time, so if you count on 10 you get that. I want to thank bill and the Weekly Standard, john, judy for making the bus ride in this morning. Representative king, thank you. And Gary Berntsen is a great member of our organization. I think it is the right discussion and build rapid a probably. I think judy asked one of the most important and right questions in this discussion was she turned and said hey, how do we know this metadata can weve heard reports its more accessible than people think. Of the agencies are using it. The representative come and this is not to disparage, was the answer is im not sure what the answer is. If anyone knows, its them. But its because in some cases the fear amongst conservatives or liberty minded folks, sometimes whereas we should be a nation of laws, sometimes when people of the wrong access, people do things with the data that they shouldnt otherwise do. And a blanket checkup trust of what government will do is sometimes difficult to give. However, we all acknowledge and agree that we live in the world of incredible threat. If one city knows and understands it, its new york city. And thats what makes discussions like this so important. I think what we hope to do and be able to do is to come into discussions with and understand, a fundamental understanding of that threat, but the folks that wish to do us harm. But also believe in liberty and freedom we fought for, and if you give at all what you are securing yourself youve lost the country you want to fight for. So we just appreciate this group. We appreciate the Weekly Standard, and most important the Manhattan Institute for facilitating this. I know a lot of you are here because of that invitation. We are honored to partner with him at this event and very grateful that you took the time out of your day. Thanks very much. [applause] [inaudible conversations] heres whats coming up today on cspan2. Up next and the chiefs of the Military Reserve component talk about force readiness, cybersecurity and the effects of the automatic defense cuts have had on their branches. The reserve Officers Association hosts that discussion. After that, the head of unicef speaks at a usaid conference. Later to become u. S. Representative bobby scott will host a town hall meeting in his Congressional District in richmond, virginia, on the federal health care law. No, referred to as obamacare. He will be joined by the Virginia State secretary for health and Human Resources to answer questions. The laws of such workers are scheduled to take effect in a few months. New insurance marketplaces are set to open on october 1 to begin enrolling individuals and policies that begin as early as january 1. You can watch this town hall live at 6 30 p. M. Eastern over on cspan. This is a huge story because its the first time that a true digital native have stepped into one of the legacy Media Businesses and newspaper are Broadcasting Companies and if he acts in any way like you did in disrupting the Book Publishing business, the book selling business, the delivery of streaming media and certainly ecommerce, then he probably will disrupt and we envision what it is to be a newspaper in the 21st century and how the business remains a business. Journalism itself is change. Its manifesting itself in very different ways whether its log on twitter for that matter. For the intersection between video and newspapers these days. So its hard to say where it said that i think we are at a stage where still being figured out, and with him find a post i think thats one start a example of heres one possible for the newspaper. Tonight on the communicators at 8 p. M. Eastern on cspan2. All the handsome young officers that were surrounding my grandmother, who was 23 years old at the time, very beautiful. My grandfather had been trying to get you to a doctor and a god because of all the handsome young naval officer around the but when the shiptoship, they all rushed upstairs to do what they had to do, whatever theyre going to do. And thats, she knew her father welfare. My grandfather went up the steps to the deck. Dont less ms. Gardner followed. Her father is dead. When jafa, my grandmother fainted. Right back into the arms of the president. He caught her tenderly a this week the encore presentation of our original series first ladies, influence an image, looking at the public and private lives of our nations first ladys. This week, first ladies weeknights all this month at nine eastern on cspan. Up next on the recent reserve Officers Association annual meeting, military chiefs discuss a number of issues facing reserve and active forces, including operational and cybersecurity training and efforts to curb military Sexual Assault. They also examine the recent budget cuts are impacting the armed forces. This is about 90 minutes. The next four hours of this program just kidding. [laughter] will be i think one of the most beneficial of this National Security symposium, simple because it is really most relevant to the current state and future of our reserve force. We are fortunate to have with us today the commanders of each of the reserve services and the chief of the National Guard bureau and representatives from the army guard and air guard. To moderate this panel we are not going to have the typical panel where everybody stands up and does five minutes about the wonderfulness of his or her service. What were going to have is an interactive discussion on the top issues facing the reserve forces. To lead that discussion, as we e had last year, we have the perfect interlocutor, and that is Major General, marine general retired arnold punaro. Is been the director of reserve affairs for the marine corps, as a general officer he was a Deputy Commanding general of the Marine Corps Combat Development command, commanding general of the fourth marine, fighting fourth marine division,hich he was really privileged to have as assistant division commander, me. [laughter] no, he was a great boss. Actually, i had that job twice. I screwed it up the first time. Is on the adjunct faculty at the marine corps university. Notably, he was the staff director of the Senate Armed Services committee and the chief of staff or senator sam nunn. There are few people in this city of washington, d. C. Who are more familiar, both having lived the reserve life in the military and on capitol hill. Hes a combat veteran of vietnam, with a bronze star, combat, and purple heart. Having been grievously wounded in vietnam. And after that, this is the other intersect, i was the Second Lieutenant davis, i was Training Officer of my basic school class at quantico, virginia. General punaro as i said will lead a discussion of reserve forces for roughly an hour, and then well open it up for about a half hour of questions from the floor. Again, write your questions down and pass them up and well get them to the service chiefs. Without further ado, general punaro. Thanks, drew. I can say theres a block and the marine corps fitness report called supply discipline, and you went on way too long. I would have to market and in that area. But appreciate a great great introduction. Secretary defends hegel has had were at a strategic inflection point. Nothing could be truer as you gather here in roa to discuss the future of our National Security. And thats a great leaders here on the stage are involved in the course of august and into the middle of september, deliberations on what we call the Program Objective and memorandum for fy 15 in the future defense plants. All the key decisions about the size of military, the weapons, the active component, reserve component makes them these things are being decided as we speak right now. They are being decided in a world of increasing threat and decreasing resources. And this comes at a time when the coalition that supported a Strong National defense certainly as far back as i know, when my years on the hill and years in industry, that coalition is severely fractured, if not hopelessly broken. And i say that, i dont share the optimism that chairman levin has about the solution because come if you look at the body politic, the deficit cut and the spending cuts have more votes than the defense. Thats just a fact of life. Hes the secretary thats tried to get out in front of almost any issue, whether it was for Drone Operations or sexual harassment, many issues he said we dont like it, we dont support the sequester, chairman levin has been against the sequester. All the titans of industry opposed to it, and it didnt move one vote. So were stuck with it, ladies and gentlemen, and, you know, think smarter, not richer. So he basically is forcing the departments to figure out how we program our resources at a 500 billion less than we planned for a year ago, thats act a 10 cut in the defense top line. That comes on the 10 cut that has already occurred previously to the physical 12 future year plan that brought us down to the bca caps which was another 489 billion. So the department [inaudible] the last couple years looking at a taking dollars out of their planned spending. So in the skimmer, theyve come up with some tough things like consolidating commands and taking a hard look at the costs of the allvolunteer force. And we on the reserve forces policy board have looked at that in detail, put a report led by Major General Jimmy Stewart on the life cycle costs of military personnel, something we have to come to grips with on the domestic side as well. The sequester, as horrible as it is for National Security, it doesnt do one thick to rein many one thing to rein in the entitlement programs both in the pentagon and the domestic. So it doesnt fix any of the nations underlying fiscal problems. So the skimmer also came out with its big issue was looking at the size of the force, and it presented the secretary with two options. Option one was maintaining a very large force structure on the active side, but one that probably was not as well equipped and well trained. Some people would call that a hollow force, but maintaining capacity and not capability. Option two that they presented, lets have a much smaller force active in some smaller guard and reserve, but with but lets make sure its well equipped and well trained. One of them is just a total nonstarter of maintaining what i would call a hollow force, but also i was disappointed and i know others were, theres another option they ought to look add, the middle option. So when theyre considering in the next six weeks to two months, you know, where to come out between these various options, i think they ought to put a middle ground option on the table which is looking at the size of the guard and reserve. If were forced because of the budget to reduce the size of the active component and i want to be very up front about this im not one that has or will advocate we ought to be cutting the size of our active component. Number two, even though i grew up in the reserves and spent my entire life and chaired the rfpb, im not advocating increasing the size of the guard and reserve at the expense of the active component. However, these budget realities are driving, are going to drive the active force to a smaller smaller whether we like it or not, and the building certainly is going to do that. So what we ought not to do is not take advantage of the tremendous capacity and capability that you could marry up. Its not going to be a hollow and in the guard and reserve, particularly as you draw down. Weve got these great young, talented youngsters thatll be coming out of the guard coming out of the active force both at the nco level and the junior officer level, many of whom dont want to leave. We ought to basically have the option of keeping them in the guard and reserve. So i would hope that would be an option that the skimmer and the secretary and others take a look at and put back on the table. This middle ground option is not new. Its a balanced concept, its been supported by previous analysis, independent think tanks. Many of the think tanks that have been talking about this have been talking about beefing up the guard and reserve, and its, of course, best business practical analysis. By the way, to continue an operational use of the reserves is aligned with strategic guidance. Thats what the guy dance says. So my argument would be or my proposition would be we should not reduce the size of the reserve component just gauze the active just because the actives are having to reduce their size. So this notion suggested by some proportional cuts or fair shared, to me, its flawed. What sense does that make . So if we continue to go down this path of the two options, everyone gets smaller together but to what strategic end . And the strategic end is where we ought to be focused. And in that way we also as we think about this at the guard and reserve, maintaining the incredible capability of ten, plus, eleven years of war, 800,000 guard and personnel have been mobilized. As chairman levin said, we need more seamless integration and take advantage of working more closely with the actives. This is not and should not be an us versus them. This should be a hand in glove situation. Were all in in the together. The guard and reserve bring tremendous capability to the active component. And we need to rook at look at that as this capability is not at their expense. We also need to be very careful, and i would say to any of you that have ideas of if only we had this or that additional benefit, we should not increase our costs in the guard and reserve. We are a true gift to the taxpayer, but we are less of a bargain for the taxpayer, and we need to push for an objective and discussion of these costs. I would say as we get into that, were very fortunate to have in key positions in the pentagon right now people that i think are thoughtful and objective on this subject. The honorable jess wright, retired Major General from pennsylvania. Debly lee james has been nominated to be secretary of the air force. She was the assistant secretary for reserve affairs in the Carter Administration be, has worked with me in my business capacity, ive known him for 30 years. Shes very knowledgeable, very proguard and reserve. Rich flagman whos the active ra, patrick who you heard from yesterday, they do a tremendous job. And ive had some opportunities to talk to the Senior Leadership, secretary hagel, ash carter, general dempsey, the chairman, very, very supportive of the guard and reserve. Let me be honest, we shouldnt discuss jess wright and any of those to be advocating for us just because they were in the guard and reserve. It ought to be on the merits. If we can get the objective facts on the table, our arguments are going to prevail because they make so much sense. A lot of times, unfortunately, the things never get up to that level. So the challenge is to not have these things arm wrestle out in the military departments, particularly if theyre going the wrong way. Roa can play a Critical Role in insuring these debates are elevated to the highest levels of the pentagon and the congress if need be. So, and yall do a terrific job at that. But youre going to have to keep ate. So with those, let me kind of introduce our panel. As drew said, you have got all their bios, so i wont give long introductions. Id just say were going to go first, ill introduce the order i was given. The chief of the National Guard bureau, a member of the joint chiefs of staff, former tenty commander at north com and many other commands, general frank grass. [applause] thanks. Okay. [laughter] i think what i understood is maybe we got a disconnect. Lets see, you are the division commander, so have at it. I think theyd make a few comments and then well go to the q a. If it isnt, were going to do it anyway, but go ahead. [laughter] first, let me say thanks to everyone in this audience. Whether youre currently serving, served in the past, we have the best military, the best reserve components we have ever had in our history. And, of course, took a lot of work to get there. So i want to applaud all the retirees. You have outfitted us, especially us now in the leadership positions, with just a tremendous leadership cast across the services. And as i look out and i get a chance to go out and look at the young men and women that serve in the National Guard, both the army and air guard, i cant tell you and somebody says theyve used this too much, i dont see that. I dont see that. These young men and women expect to deploy. They joined since 9 11. They know what theyre getting into. They want predictability as much as possible. But they do want an opportunity to deploy. And so what i, what i think we have to do, and we already hit on it, weve got to figure out what is that a right mix that the nation needs for security, you know, strategic hedge against a very uncertain world, how do we maintain an allvolunteer force both, you know, active and reserve component balance and then not break faith with our people . And our people, our warriors do expect to deploy. I was, just over the weekend a number of different states that i met with and id have 20 or 30 in each group, every time i would ask how many people deployed, anywhere from a quarter to a half of the group would always have already deployed. How many want to deploy in the future . Every hand goes up. Every hand. And i do think, though, theres a balance here in the deployment that we have to look at. One is we do can need to continue to engage in the Operational Missions of our services. For me, its with the army and air force. So we have to look like the army and the air force, and we have to have missions that get us into the fight. So we continue to grow leaders that can be ready at a moments notice anywhere in the world. The second part of that, i think, though is weve got to get our training focused back probably where we were in the 80s and 90s doing rotations for our combat units and all the enablers that went with that. Weve had a number of overseas canceled because of the budget issue. I think about the days in the 90s when many of us deployed to Central America on humanitarian missions, dental, medical, veterinarian, all of those skill sets really paid us benefits in the 90s and 2000. So we have to figure out how do we get enough money to have that dynamic training that will keep people in and keep them attracted in the guard. And the last part of that is, i think, for all the reserve components, and were really pushing this hard in the guard right now, we have the opportunity to fill vacancies whether its a critical shortfall for three or four weeks or for two or three years. Some of you remember the old keep up program, Something Like that where our folks who can get away from an employer, the family situation is right that they can go plug an active duty bill for a time especially in the joint world for the reserve components, getting those opportunities. I think thats really what weve got to focus on, but it starts getting the force structure right for the future. Thanks, frank. Lieutenant general rich mills just left as the commanding general of the marine corps down at quantico, hes headed to the reserve commanding general of the First Marine Division in combat be, of our larger organization, First Marine Expeditionary force, first marine general to command forces in combat, General Mills. Ill temper my remarks and say that i come to work now with the reserve component with the greatest respect because of what i saw on the battlefield both in iraq and afghanistan. And i think that one of the challenges for us is going to be to maintain that momentum in the years ahead, that we dont, again, break that bond thats been forged and forged with blood and steel out in some very strange places. I was privileged to have reserve forces both organized units and ias under me in afghanistan, and they just did a magnificent job. So i realize the reputation, and theyve done that through training, theyve done that through well organization and through good support for resources. And as the marine corps begins to trim forces, and its very natural that we should do that over the next few years, we come out of the war, our goal is to maintain the reserve forces at the level theyre at, to maintain the support and, again, keep that bond between the active force and the reserve force very, very strong. Well do that through training together, through deployment of our reserves and as individual august men meant august meantees. To, again, continue to shine. Thanks, rich. Vice admiral robin braun is chief of the navy reserve and commander of the reserve forces, shes also commanded at every level throughout her career. Admiral braun. Thank you so much. Good morning, everyone, and thank you for your service. The navy reserve right now is forging ahead. We have taken over all of the or were in the process of taking over all of the individual augmentees serving in afghanistan and forward deployed. So at this point were at about 70 reserve component, about 30 active component and looking to take over all of those missions so that the active component can get back to sea. Our reserves are serving across the board. You name it, medical, intel, logistics, seals, unmanned vehicles over in afghanistan right now. For next year were anticipating about 3500 mobilizations. And im proud to say that even after 12 years of war, we still have about an 80 volunteer rate. And i think that really shows you the commitment and the dedication of the reserve force that we have right now. Our challenges currently, were in the middle of a drawdown of expeditionary forces. And so in 12 and 13 the navy made some hard decisions and decided to reduce forces in both the active and reserve component in expeditionary capabilities. That means reduction of about 6,000 Navy Reserves who serve in cb battalions, Cargo Handling and expeditionary logistics as well as maritime security, small boat teams. And so were just beginning the drawdown of those 6,000 billets next month, and so our focus right now is finding homes for those 6,000 who will be displaced. And so weve done a study of where all those forces are and where they live throughout the United States, and weve tried to replace bill with ets so that billets so that they are not completely displaced. Know well have overmanned units, but at this point were trying to manage that through normal attrition, normal retirements and then reducing the asessions into the navy reserve. Going forward weve got some new missionaries that were very excited about, especially in cyber, in unmanned vehicle, into lcs ships and that program. Were looking to grow it to about a thousand billets. So there are new and exciting capabilities out will for the navy reserve. The challenge will be over the next couple of years with sequestration and looking at the proper active component and reserve component mix. We think that we have a great opportunity to shift some capabilities from the active component into the reserve component without taking too much risk. And so thats one of the things were working every day in the pent gone. Thank you. Great, thanks. Sitting in today for Lieutenant General stan clark is Brigadier General john mott whos special assistant to the director, general clark, of the air National Guard. Generalsome. Thank you, sir. And being the youngest member of the panel, ill keep my remarks appropriately short. On behalf of the director of the air National Guard, i look forward to the opportunity to discuss on behalf of the 106,000 dedicated airmen out there today. Thank you. [inaudible] [laughter] boy, he gets an a. Make a note of man. [laughter] lieutenant yj, hes putting you in a tight spot here. General j. J. Jackson, also commanded at every level. First off, thank you for your comments. Thank you very much for being here. First, thanks to the roa for putting this on. Theres been a lot of fiscal pressure to not have these type of conferences, and thank you very much for every member thats here supporting it, and id like you to thank your commanders also for letting you attend this symposium. Its of great value to our air force reserve and the total air force, so thank you very much for being here. A couple things id like to pile on with the chairman and a couple of the comments made. The things we are focused on now have to do with moving capacity and capability into a more efficient and effective force structure, and that will be in the air force reserve. We have an opportunity right now, and the chairman had mentioned the skimmer. I personally was disappointed that the skimmer did not have more discussion concerning the reserve component. I believe the qdr will be the place we can have that discussion. So given the support of your organization and get the support of the members that the chairman mentioned within the office of the secretary of defense be, i believe we can get those discussions raised into the qdr and actually have some proposals put forward to the secretary. Part of that discussion has to do, obviously, with force structure. And so what were attempting to do within the air force reserve right now which is about an 18month process weve just completed is do a strategic view of our mission sets and be our missions. So what weve done is taken all of our mission sets that support the total active duty air force, and weve racked and stacked those into different priorities to find out where the Mission Stats are going to be of most value to the nation and to the air force reserve. The bottom line is that were trying to find out how we can best equip and effectively produce combat power for the air force to in the year 2023. Because that is what chief welsh is focused on right now, shaping the air force to do the fight. Try not and get caught up in the quagmire thats fy15 and 16 when it comes to sequestration cuts. We know were all going to be smaller, but the air force can benefit from having capacity and capability migrated to the air force reserve, and were looking forward to making those types of arguments. Theres some great work put out in the report by the chairman and Jimmy Stewart, need everyones support to make the argument at every level. Major general Marcia Anderson commanded at every level from company to officer, our subcommittee on the continuum of service. Thank you, mr. Chairman. On behalf of Lieutenant General sally whos not here today, i want to extend my appreciation for your attendance. I think this demonstrates your dedication not to your civilian career, but to your professional military education by your attendance here today. So, again, id like to thank you for your attendance. On behalf to the 205,000 members of the army reserve who together comprise the majority of the logistics enablers and engineers, medical, legal, support for the army i want to say, again, thank you for attending here for being here today. The army reserve wants to continue to be a part of the National Defense strategy. We believe that our ability to participate in the war fight across all phases of the war fight add immeasurably to the armys capability. And like the other members of the services that are here today, we believe that having a Strong Reserve component is key to our National Defense. So, again, i look forward to the debate and discussion here today system and to your questions later on. Thank you. Thanks. Admiral steve day is acting director of reserve and military personnel policy and the coast guard, another great rfpber and someone thats been mobilized more than i know. [laughter] hes been throughout his career on active duty. Thank you, sir. Thank you, mr. Chairman. A pleasure to be here, be amongst friends. I guess i just want to tie up all the comments made by my respective reserve chiefs, tie it into three words. In 1991 the Coast Guard Reserve shield came out and circling our shield is professionalism and patriotism and preparedness. I look at all of us, us on the stage, out in a the audience, we all took an oath, and is were expected to uphold that oath. So we need to be prepared regardless. I was in desert storm, was one of the first the land on the ground in september, and since that day guard and reserve have been called up continuously. So we need to be prepared. So i really hammer that with my fellow coast guardsmen that are reservists. Be prepared. Second point is professionalism. Professionalism, ive experienced that through a lot of joint tours. One of my shipmates in the audience, Major General rich [inaudible] was the colonel in charge of the joint training reserve unit at jibcom, weve maintained relationships throughout the year. Richs son is a first class petty officer on one of our expeditionary warfare units in San Francisco in psu12. Ive been around a great many professionals and again, thats something on us who choose to wear the uniform. And my last point is patriotism. Im sure youve experienced, ive experienced when ive gone through the airports people come up and shake my hand and thank you me for service. I think thats great that theyre recognizing me, but i dont consider myself the patriot. I took the oath, i agreed to go in uniform. But i do want to remind all of us as guardsmen and reservists this is my opinion i believe our families are the patriots, and also i believe our employer is the patriot. Ive been fortunate to deploy as much as i have because be ive had good employers that understood what the mission was and understood what the requirements were. But i didnt stay any longer than i had to because that employer needed me to get back to work. So i just raise that point. I think were all meeting the preparedness piece. I think were all professionals, and i just throw in the families and the o the patriot side. Thank you, sir. Great, thanks. Well, lets start our round are table discussion. Id like to put out on the table and try to deal wi these two issues either together or inner is idea am, one is the issue of the middle ground i discussed, the size of the active of component, the size of the guard and reserve component, the rimm between the two, the ac rc mix. And at the same time, i think we should talk about the nature of the reserve and guard component in the future, the operational when i chaired the commission on National Guard and reserve, we looked at this for two and a half years and asked the question, could we sustain and support what was then called the Operational Reserve . We concluded we could. There are those that are now arguing, well, maybe we ought to move it all the way back to the Strategic Reserve of the cold war with era. And so i think those are the two issues that we should spend a good bit of time talking among ourselves. And i want to say as we do that if we could talk about only of the myths that about some of the myths that have been put out there. And ill mention just one. And, again, we want to be careful. Im very, mean it when i say its not an us versus them. But there are those that are saying that guard and reserve cant get there in a timely fashion. Theyre saying theyre too hard to get to, they take too long to mobilize. And so the one anecdote and anecdotes should not determine outcome of arguments, objective facts should. In the immediate aftermath of bombing at the Boston Marathon, the first picture i saw, it was in like 15 seconds, every tv across the world showed these two individuals in army digital camouflage right there on the scene within seconds helping the wounded, severely wounded victims. And i thought to myself, you know, it must be amazing that the 82nd airborne at fort bragg has got that dr. Spock where they transsported themselves to help those wounded within seconds of it happening. Isnt that amazing . I said, wait a minute, thats the massachusetts National Guard. Ladies and gentlemen [applause] we saw it in thage in new york. Members of the Marine Corps Reserve, members of the National Guard, they were first on the scene. So as we talk about these issues of the mix and as we talk about operational, i hope we will dispel this fact that somehow the guard and reserve is not available to base beically carry out these missions. So what i would pose to the group is, is this middle ground option that i highlighted earlier, is that something that ought to be seriously looked at . The best way to go about doing that, and then what is your thinking about are we in danger of moving too far away from the Operational Reserve . And if so, what do we do about that as well . So, you know, go to my right here to our most Senior Member and throw both of those out and get this discussion going. Thanks, arnold. Thanks more your salute to those massachusetts guardsmen. I actually had a chance to meet there was three of them there, two that you saw on the news. They had actually just completed with their rucksacks 26 miles, 26. 2 miles. They were there volunteering, and when the bombs went off, they ran to the sounds of the guns. And i was able to pin some medals on them with governor patrick. But you meet these three young soldiers, and they would tell you they didnt do anything different than anybody else would, and i totally believe no heart what reserve component youre serving in, our folks would step up to the challenge. But i think it says something a lot, too, about where we are for the nation and really looking at two missionings and why do we need this middle ground. Why do we have to have this Operational Force. Theres a lot of threats against the homeland. We dont have geography be even if you look at, you know, the manmade threats today and terrorism. And then if you look at the increase, and you can read any Scientific Study youd like, but the increase in the number of more complex catastrophes that we see coming our way and how are we going to respond to that in the homeland if we dont have trained leaders . And part of that trained leaders goes back to force structure, and we grow command and control through our hometown units, and thairs dispursed theyre disbursed. So we can respond quickly. Why were we in boss to on the . We live there. When we do go to war, Everybody Knows something. It brings along the populace. And i look at operational, from a reserve component, from a National Guard to airman be and i look at the numbers today, we have 3835 guardsmen doing missions in the homeland both from state active duty site all the way to a title x mission. And the baseline right now is about 4,000 a day. If you take our sixyear average in the homeland, its 6,000 a day. Of we have guardsmen and women responding somewhere in the home lambed. Deployed today, 18,973 deployed overseas in every operation that our active air force and our active army are in. Were side by side with them. We want to maintain it. I think we have to if were going to sustain this force. Great. Marcia, i know if jeffal hi was here hally was here, hed want to jump in on that. Operational may have of the army reserve . Well, theres an extremely strong argument for the fact that were concerned right now about whether or not were going to assume risk by reducing the size of our armed forces. And i think the counterpoint to that argument is by increasing your capability in the reserve component, you mitigate that risk significantly. Because many of the skill sets that we need, as i said, across the spectrum of the war fight are in the reserve components. And they are in ways perishable skills. I look at the air force, the fighter pilots, and in the army reserve, for example, as i mentioned earlier, our logistics, engineers, medical capabilities. Those individuals not only have military skill sets, but they bring with them and you all know this yourself you bring innovation and other creativity from your civilian careers into those same jobs. And a lot of the advances we saw in terms of medicine on the battlefield came from a lot of our military and and our reserve doctors. So in order to mitigate the risk that we might face by reducing the size of the active component, we need to look at the capabilities that preexist in our reserve component and perhaps grow and enhance those. And on the operational, do you see a push away from using the army reserve . We know the army guard was off ramped for some admissions theyd been doing highly successfully for the last ten years in sigh tie and [inaudible] do you see a push coming in the building with either on the army side or something thats pushing the army back more to the cold war strategic side . There have been, in cases our units have been offramped because we have some other specialized capabilities, theres still a demand signal from some of the Combatant Commanders. I think that and i probably should thank senator levin, hes already left, but 12304 is going to enable the Combatant Commanders for bravo to utilize reserve components not for long durationtype activities, but for some of the short Duration Missions they have. And that will fit very nicely, general talley might tell you theyd need a concentrated small capability to support Security Cooperation or some other partner building capacity. Great. J. , whats your take on these two issues . Operational reserve, we hike to bid we like to bring the Operational Capability we bring every single day, so the pileon comment there is we need to remain tier i ready, may be a little different between the services. We get programmed, planned and trained to that oneready level. So that allows us to bring it every single day to the fight. Currently about 5,000 air force reserve members that are direct support to Combatant Commanders. The second part is that Surge Capacity. You have to have that 2 to 1 radius, but why pay for something 24 7 when you can put it in the reserve component and have it whenever you need it. And the third one has to do with that strategic capability. Whether youre talking about the inactive reserve or whether youre talking about fighting the big conflict, that is a strategic requirement. So once again weve got to plan towards that strategic requirement but have the capacity and capability every single day. When it comes to the ac rc mix part of it, im pretty happy with air force general welsh because he has us mapping Combatant Commander requirements using all 600,000 airmen, guard and reserve active, meet that requirement at a 1 to 5 starting point and see what we can use the reserve component to do. And then were going to program against that requirement and see what money mpa and also o m is going to be required to do that. So were optimistic that were headed down a pathway we want to go down. Great. And i should have mentioned, i think general welch and with debbie james coming in, i think youve got, as you mentioned, very open minded new leadership where we hopefully wont repeat the food fights that happened between the air guard and the air reserve and the active air force which the congress, and i spent 24 years in the congress, all four committees the two authorizing committees and the two subcommittees not just rejected the proposal in the budget, but soundly rejected it in a way that i had not seen before. But with general welch, hes a very, very thoughtful, objective individual. Before we jump to the next area, would my of our other leaders want to jump in on any of those areas i henced . I would because coast guard, were pretty unique. And the operational piece is expected by the Operational Force. We do not have reserve units. We did away with them in 1995. We fully integrated with our active duty force. And just as an example, both area commander, current air commanders admiral parker in the atlantic area and admiral due cover in pac area, are making sure that force is ready. The commandant and i have talked about this. Today we have about 5,000 forces ready to go out the door for a title x or title xiv contingency. We have atsus that are approximately 1,000 of our 8,100 force. During the expeditionary warfare, theyre racked and stacked and, in fact, 301s are going to be going out the door very soon to replace the unit down in the gitmo. So well have the gitmo mission for as long as we have prisoners down there. But the more important thing is us being prepared to ready to answer that call like in deepwater horizon of which we recalled about 2,000 reservists for that incident under title xiv. So were very much integrated with the active duty command. They expect it. They plan for it, and were being part of their plans all the time. Great. A question from the audience that i think really is very, very important and phrased this way, could you have a reserve force with half of the units operational and half strategy snick and before posing it to the panel, we need to understand because theres a lot of myth about readiness, and youve unfortunately seen that the readiness of all our units have been deteriorating on the sequester. But if you look at the active duty force at any one time and its different a little for each service, but for the most part a third of that force is operational probably either out in deployment, theyre on the ground in afghanistan, theyre in kosovo or the sinai, whenever they are theyre training, so that third is absolutely 100 on freedoms edge. The second third is probably the units that are getting ready to go do something of various kinds. It may not be a deployment, but they in their state of readiness, it may be a tick below that of the first third, but the notion and then a third of the active force at any one time just got back from the deployment, for example, if youre an amphibiousready group or a Carrier Battle Group and you just came back from a 69 month deployment, no one expects that third to be, you know, ready to go do anything. So the notion that all our active duty forces are 100 ready every single day of the week, 365 days, one, we couldnt afford it and, two, its just not the way it is. So issue on the reserve side is, you know, we dont propose to have 100 of our units, you know, operationally ready every day. But what is the percentage . And, again the hidden agenda here is when people talk about the Strategic Reserve, and maybe the new leaders are thinking of it differently. When i hear the words Strategic Reserve, i think of the Marine Corps Reserves as i knew it in the late 70s, really 80s where we had no i equipment, no training, no the money, and thats because in the peak of the cold war a lot of reserves or but going to have longer to mobilize. Its a really serious question thats been posed. Could you have a reserve force with half of the units operational and half strategic . Again, frank, im going to turn to you first because, you know, at any one point leading up to 9 11, the guard actually had over 60,000 guard personnel on act you have duty doing active duty doing something somewhere. Even in peacetime, all of the reserve components were on active duty a heck of a lot more than people realized, so many of them. So i throw this out for the whole group. Again, this issue of how much should be operational and how much should be strategic. And when we say strategic, are we talking about a new definition of what strategic is . You know, look back in the 70s, 80s and even into the 90s in the National Guard especially on the army side, we had enhanced separate brigades, we had division albahary gaze, and they were resourced at different levels. And even though we trained and resourced the enhanced brigades and our force support packages which were the short deployers and our enabler, we gave them more resources. By the time you got it down to hometown america, that was being balanced a bit. Although we held those others to a higher standard. What i found, though, is the onethird that was in the bottom all the time, and usually it was our divisional unit, you created a mindset that, hey, thats all they expect of us, thats what theyre resourcing, thats what were going to stay until the war, and then we have 180 days plus to get ready to go. I think one of the best things the army ever did was adopt the rotation model. That model has done so much for every functional area within the guard. Not just our combat forces, but all the enablers. Everyone is in in a cycle, and i love that model. People do need a break from that highop tempo, so my recommendation is we continue in a cycle, figure out what the right amount is for the different functions in a cycle. Robin . I think there absolutely is more room for more Operational Forces and more Strategic Forces in the navy reserve. And we see that with cb who are involved in rotation, squadrons who are operational. And yet there needs to be room in the reserve for people who can only do 38 days a year, you can do your 12 months of drill weekends and then your 14 days of at and 38 days. Basically, thats all they can give because of their civilian job or family situation. But yet theyre trained and ready so that when we need them, they can come and serve. So i do think theres room for both, because there are so many Different Missions in the navy reserve. Super. Marcia, i know, as chairwoman of our subcommittee, youre actually looking at that model. But from your army reserve hat. Just to kind of echo a little bit what general grass said in his remarks, the predictability is important, number one. But number two, i agree with admiral braun. Youre going to have people who are going to have to be ready to go at a moments notice. Because as a practical matter, in the first 60 days of the war fight youre going to have people who are enablers in army reserve who are going to have to get there to prepare for the followon forces. So youre going to have to have some who are operational and some strategic to your point, admiral braun, youre going to have people who can commit more time x we need to give them the opportunity to do that, and were going to be smart about how we go about that, but we need to have a mix that supports that. Jonsome. I think its a little narrow focus to ask if the reserve components are the only ones that can be half and half. I would submit that the active duty could afford with the deploy to dwell ratio so that all together they come up with a force thats ready to go at a moments notice and all the Different Service core function functions that we have yet still have some recovering and recuperating, and that helps with recruiting intention throughout the entire force. Great. Rich . Sure. I think it plays into, exactly, a total force concept the marine corps is banking on, and were looking at the reserve as being a shock absorber in the event of a major crisis but also a regular part of our Rotational Forces in order to give more dwell time for our active component so they can refit as they come off of their deployments. We look at it more as an Operational Force that plays directly in support of a total force concept both in peacetime and wartime. I think for all of us as we look at all of our structures getting smaller, you look at the requirements the cocoms have, youve got to have a reserve thats ready and able and trained to go out the door fairly quickly. Timelines will stretch out, they may be the later forces that come into a crisis, but the timelines are relatively short overall. So think youve got to maintain an Operational Reserve, have them ready to go. J. J. . Just like i mentioned previously, theres too much baggage with those terms. We do the Surge Capacity because we have to help with this fight and then we have strategic depth on the end of that whether its someone that participates 38, 40 days a year or in the big fight, we look at each one. But theres a temporal aspect to this. So whether get to the fight or whether its training on a daily basis, theres opportunity for the total force like jon said to go ahead and have that across all three components, to look at that aspect of it. Steve . Sir, when i was Senior Reserve officer for admiral parker, i proposed the concert for the [inaudible] that arent in psus. Theyre under the bog and dwell that many of the units of the fellow chiefs are under. And be he was very enthralled with that. Were hoping we can institute that. So if you take those 5,000 forces of coast guardsmen that are ready to go but we break it up to a bog and dwell of 1 in 5, but if this is your year, it hate them over the fiveyear period ready to go. One last question in this session, as i mentioned earlier, were stuck i think, unfortunately, were stuck by the way, were not going to give up fighting the sequester. Those that on a bipartisan basis support coming up with the kind of balanced compromise that chairman levin talked about, and thats really the only way were going to get out of it. No ones giving up, but so far we dont have the votes. Well keep working it. But lets assume that, unfortunately, we may be stuck with these lower level resources, think smarter not richer, what are we doing and what can we do on the rc side to tighten our belts a little bit, and what missions might be candidates for either increased or decreased rc participation . And im going to hit j. J. And then marcia up because, frankly, the air reserve and the army reserve are caught up in some of these issues right now with the headquarters. So, j. J. , ill start with you. Yes, sir. And like i mentioned in my opening comments, you know, you can see whats going to go on for at least the next two years. So were trying to put a stake in the ground that aligns with the vision of 2023, the Technology Air force can basically go into [inaudible] type of environment, do the highend fight and how do we get there . And provide the Global Vigilance the that the air force does on a daily basis. As we look through all of our mission sets and were very diverse, every single one of the air force active duty service core functions, but some of those are enclaves of excellence that even dont have capability for a member to move out to the senior officer ranks. So were looking at those and trying to make a determination of whats been used, whats a good strategic type of capacity that we need to retain and whether some need to be moved into cyber, isr or possibly space. Well, before i turn it over to general anderson, could we save money by merging the air force reeveryone and the air guard reserve and the air guard . No. [laughter] [applause] thank you, mr. Chairman, for teeing that up. [laughter] in terms of looking at our structure, we do recognize in the army reserve that we have some structure that needs to be repurposed, ill put it that way. Were looking very closely at some of our training structure and assets to see whether theyre being fully utilized. So we can find some savings in terms of force structure. But we also dont, again, want to sacrifice our ability to be responsive to cocom commanders and to any con tin general requirements. Great. So let me say as i turn it back over to drew to more questions from the audience, obviously, you can see were very blessed to have these very talented, capable and engage ld leaders at a time of critical Decision Making in the d. Number two, the reserve forces policy board, our next meeting is september 5th. All these leaders have been tremendous apartments in all of our session participants in our quarterly meetings. We pumped out a lot of hardhitting recommendations to secretary hagel, a number of chive adopted. We have a meeting on september 5th, its open to the public. Were going to have many of these same leaders participate, were going to hear from the secretary of the army, from the vice chairman. So any of you that are interested in attending one of those sessions, we really need to get the input from the field. Were very fortunate because were statutory, independent commission that reports directly into the secretary of defense. And i think youve gathered from our conversation here this morning and particularly our members, we are not shrinking violates on any vumght violets on any summit, and we call it as we see it. I think its important for the people at the top of the Decision Making chain. Theres a therm allayier in the pentagon, and a lot of things that are happening at the deck plates never make it up to the top. And we want to make sure from the rfpb that secretary hagel and ash carter and be general dempsey and admiral winnefeld are getting the objective information they need to make some of these critical decisions. So thank you for your continued support and look forward to your help on the rfpb and, drew, thanks again for allowing us to be here. And with that, take it over. A great discussion so far. We now have a number of questions from our members and attendees at this symposium. Let me kick it off by continuing the question that general poe narrow offered up on to narrow on the nature of the guard and reserve. We heard emphatically from general jackson. General anderson . No, it would have been hell no. [laughter] there might be some efficiencies gained. Were talking about that across the department of defense, and general talley believes the guard and reserve both bring information to the table, so thats all im going to say about that. [laughter] general mott . Ill defer to my boss. [laughter] [inaudible] [laughter] this was, actually, my next question for general grant. [laughter] how do you general grass. How do you handle this issue as an honest broker of for joint chiefs . And as an adjunct question to that, is there any wisdom to the idea of rotating your billet with a reserve officer . Wow. [laughter] let me start by, i came to the job last september, and one of the fist things that the staff talked to me about was youve got to establish a position on the topic of combining the guard and reserve. And i thought about it, i looked at everything, we were getting ready to go into the skimmer process, everything going on. My first thought was weve got to stay tight as a reserve component here, and i think this decision is not for us here. I think this decision is a policy, a political decision that has to be made. And it comes up about every four or five years. And the decision is made in the past, you know, we have seven reserve components for a reason. So my position has been im going to stay focused on keeping a Strong Reserve component in the army and air guard as a part of that, and we Work Together as a team. So can i how much the idea of rotating the billet . [laughter] i think if you look to the future and you think about how we do business as a nation, you know, the governors and what we do every day in support of the governors in the states, you know, weve made some minor changes that are pretty major when you look at how they impact our response capability with now being able to use the reserve under 12304 alpha. It lends it to think about that for the future. But then how do you get beyond the title 32 discussion . And you have to bring these forces together if youre going to get there into the future. I think everyone from a Business Case if you think about it and you were in business, you wouldnt have seven separate organizations and, you know, a number of them doing the same thing. But politically and for all the people in this room, you each bring a different capability to the fight. And a different way to get to you. So all of that has to be deconflicted if were ever going to try to bring them all into one. And if we ever did, you would have to rotate the position. But it still would have to be, you know, have both 10 and 33 authorities. Thank you, sir. If i may to finish up on my hell no part [laughter] no, seriously, just like general grass said, we as an air force are looking at this. And what is the good news of having three components . I depress what ill like to say is up until this point and in the foreseeable future both the outgoing secretary, the acting secretary and the chief have said theres goodness and value in what all three components bring to the organization, which is our total air force. So that allows us obviously, though, to bring in other opportunities for mission sets and discusses that allow us to say where can those efficiencies and abilities be enhanced . When i go over to the hill, i tell them theres goodness in three options, and the chairman can probably speak more eloquently than i can, but onethird of them, just like smoother levin talked about, the senator levin talked about, the guard and reserve dud not. We had the active duty members current and qualified on the Mobility Air Force side by using our appropriation to keep those folks ready. And some of that on the air forces side also. So we mitigated some of the effectses of this draconian cut. And if you combine that all into just two or one air force appropriation, you wouldnt have been there. So my closing comments on that, thank you. General mill, and the marine corps olaf laugh during the part of the discussion we talked about the potential for accessing ac Service Members into the rc as we have a reduction in ac forces. At the same time, we had a question from the audience about how do we manage the outflow from the reserves so that we can get rid of the nonperformers, those who are overweight and who arent progressing, all showing up for drill. We all know we have ghosts in our units. How do we pick the right people coming out of the ac to fill spots that we open up from the outthrow. General mills . Well, i think were going to enter a really golden era of being able to hand pick some very, talented individuals who are leaving active service for whatever reason, whether because theres no longer any room for them on active duty or because theyve been through the excitement of the past 12 year, and they choose to go on to pursue other things. I think that we can really have a larg talent pool coming in. The challenge, i think, will be to attract them and to make sure they understand, a, the importance of what it is the reserve component does, the good training theyre going to receive, the modern equipment theyll be be able to work with and the good leadership that they will be b receiving. So i think the opportunity is there. We have got to make sure that we make it an attractive alternative to what other aspirations they may have. But i think in the marine corps side of the house, theres never been a pool of junior officers, everybody below the rank of lieutenant colonel, so talented and experienced as the pool we have right thousand. And its going to be a shame because were going to have to force some solid combat leaders off the active rolls, and wed be foolish not to take advantage of them as they reintegrate into life. Admiral braun . I agree. I think this is important to not do acrosstheboard, equal cuts between the active and reserve component. I think this is a perfect time to look to see what missionaries we can move into the reserve component, and then as we draw down on the active component site, take advantage of those great sailors who are leaving the active component and bring them into the reserve component. I think its very important to do that. And those are some of the discussions were having right now in the navy, because there are people who say, well, if the active cut 10 be, then the reserves should be cut the same. But i think when you rook at it when you look at it. Why debt with rid of those why get rid of those active come possiblies . Take advantage of all that great training and experience that theyve had over the past 510 years. Theres a dca for that also. I mean, if you keep the access in for life a citizen in for life, you retain that half a Million Dollar investment over the fist six to seven years of that training. Why throw that all away . You cant bring them in we dont have the positions, so we need to look at that hard. General anderson, let me if you would also talk about ways that we can streamline the process for getting rid of the deadwood. Well, uhuh think we complicate matters by the fact that we currently have over 0 different duty statuses 30 different duty statuses for the reserve and component, and we need to reduce that number to as little as six to provide the kind of ability for people to move back and forth between airman for life, soldier for life, the continuing Service Needs to be a little bit more attractive to people, because it can be difficult to transition from active duty to reserve component. The army is looking at it, they have some tools that are in place now, but i think we could add to that discussion and be engaged with them in helping them find ways to shape those tools a little bit better. Because many of those tools are designed simply to call folks from the force and theyre not really targeting some of the unique skill sets that we need in the reserve component. So i think as a reserve component be, we have a duty and obligation to be engage inside that discussion and help our Respective Services come up with really good shaping tools. When we are back in reserve status, we are spread from alaska to puerto rico, and often remote from either the va or quality military care. And then there is the added tragedy of suicide rates. That subornation may contribute to. Comments on improving, sustaining, building the quality of reserve medical care and medical readiness. I would comment that in the readiness one of the things we learned as we activated the reserve units was to have a good Family Readiness officer at each location who could serve as the family is left behind and steer them the right direction whether it be medical care or any issues they had. Now with the cutback there is the propensity to say not many units are going to be activated and doing as much. Perhaps we can save money by cutting the Family Readiness programs and reach out. I think we have to resist that to the greatest extent possible because in some ways some of the units are going to have medical problems extended well into the future with ptsd. There is a process to make sure that the Research Community understands how they can go get that medical care. How do we bridge that time and distance and tyranny . Are there other comments on that . One of the things we are dealing with in the air force is standing up basically the Case Management sell at the air force medical organization down in san antonio. For the last 24 months we have been working this issue to say how we take care of the title ten members and whos going to give the individual member when they go back to the location . That isnt really available. And so we can to the conclusion that we need to stand up the Case Management cell for the orders and that is where the air force is going trying to provide some kind of reach out and touch with the Case Management officer. We are not there yet. We only have it managed to about 50 but that is what we have come up with with the air force in trying to handle that. Any other comments . Sure. One of the other things that concerns me today on the medical side, and of course suicide are tremendous, tremendous problem and its an epidemic in our society especially when you look at the age group. There was a note this week in the early bird about 50 of the suicide have never been deployed. So if the problem in the society has to deal with that weve reached out to health and Human Services and they are providing us some Research Money and we are going to look at how can we join forces and the community, using some of the assets and the volunteers we have out there that they are providing in the medical health professionals. So, i think there is some opportunity. And i think we have to get after that because as about 100,000 commodity army, the marine corps, and they are coming back to our home town across america. And there is going to be medical professionals that havent dealt with this at the level that we have had to deal with. So i think somehow we have to use our reserve components and armories to make that happen. What really concerns me today the ways the same money that we need to do that is the money that is drawing up and the same money that we used for the soldier readiness process and the airmen readiness process is taken us to a level that our readiness in the guard today is higher than its ever been. So how are we going to sustain that and all these competing demands . And we have to get at that. And part of this is the compensation discussion. You know, what portion can we continue to afford across all accounts . And some of this and being a member of the joint chiefs we talk about this all the time that every program we send up to the hill you want to curtail, not really cut but you want to curtail some of the spending that we look to the future to try to save. Example, its hard to sell that on the hill. When you are going to get after it if you are going to maintain a Strong Military and all volunteer force. Or at some point our salaries and compensation. I think there is a study out there that says if we dont do anything, separate from budget control. If the defense doesnt change compensation, raise benefits, more in line with the civilian world today, if we dont buy 202180 of the total Obligation Authority of defense will be going to sell the trees and compensation. We had a couple of questions about new emerging missions for the reserve and then we will ask for the reserve forces. A couple examples were cyber, and i think somebody brought up uav. What are each of your service is doing to prepare for these new battlefields for the future . We are looking at cyber. I was at the cyber guard exercise two weeks ago. Theres a real interest to have the coast guard sign to the seibu command working that issue. The other piece that is going to be an interesting one for us is we see the arctic has an opportunity where during those times when weve got our forces up there, active duty forces, its to utilize the coast guardsmen that have the skills that are needed up in the arctic. We are looking into that at this point. But nothing is definitive at this point. Sign me up for that duty. [laughter] i mentioned earlier in the air force reserve we look at all of our missions. With no surprise, it appears in about a third of what we think would be a good fit. The discussion we have in the air force is how we are going to fill the requirements for cyber calm. Its about an 1800 manpower position which the air force cannot fill. So it makes sense to look at that and we talk about the capacity and capability in the air National Guard and fulfilling that requirement. The of their position we are looking at is this is quite be a Specialized Skill set that has to be on the cutting edge everyday. And as a civilian, you can do that. By the way there is a company that will do most of the training required. So why take on to the dod budget when you dont have to do that . So were pushing ahead to build the structure. We have ten squadron is being put together and set up the first Operational Cyber group and were putting together a pyramid to try to support this requirement. We already have the cyber structure in the army reserve and as it is diluted to those are some perishable skills sets, and if you dont exercise those in a daily basis, they can the road. So i think the reserve component is ideally stated to have more cyber access because there are things you do in your day to day civilian profession that i think can only enhance the capability. I think the challenge is because the long Training Cycle it takes to get a Cyber Warrior ready to go. I agree that the Research Community has a lot of challenges that really apply directly to what you need in this labor challenge we are finding on the side of the house is you have to bring those folks on active service and theres a long Training Cycle before the even more used to it as a sires warrior so there is a balance that you have to strike. What about with the ponytail in a garage who is perhaps i wish i had one. [laughter] but the civilian contractors very attractive, however im talking about joining them in the reserve. Well i think i have the high side on the hair cut. But what i would say is in visiting the cyber guard, at the cipher command, washington guardsmen were there and they were the educators and they worked for microsoft or they worked for the software companies. And thats my take away from that experience was to get with my fellow research and say interest in what the competencies are that you need for your cyber folks and then whether or not there is another ad for admiral, not my brother but there was another that said get those competencies and what is the realistic thing we can do with their 36 days of training for the reserve men to do that but take those skills sets from the civilian and put them in there. So that is what we are really looking at. Excuse me. Go ahead. We had a task force on monday ipb. Hes a businessman in this area kind of looking at the future. And General Mills makes an excellent point. You look at the amount of money at the train them and all the services, and unfortunately with say they serve six years active duty and we have a Huge Investment in them. Then they decide for a lot of reasons they dont want to be on active duty anymore. So my thoughts, one of the thoughts that i charged the subcommittee with is that instead of losing that talent to the department of defense, because i guarantee you that the microsoft, google of the world are going to be able to pay them a lot more than they will be able to make from year 62 year 12 or in the military. But can we come up with a Research Contract where we do as General Mills said. They train them, give up their time, do what they are supposed to do. And even though we like to keep them on the active site, how to restructure some of the reserve components where they can come into those units and this is another challenge in that it was mentioned that by general grass and others we have these incredibly talented youngsters and officers that are going to leave. And in the reserves, how do we get them in there and maybe we have to take as many not Prior Service personnel and get a little richer and spend a little bit more time because to get the kind of talent that we are going to be paying for s taxpayers in these critical skill areas like cyber, it would be a great disservice to the war fighting skills the tax payers to let them leave active component altogether and not have an opportunity to continue to serve. I know a lot of them would come in and you know, we want point out any particular units, but i know that in the Marine Corps Reserve to be openminded enough that if they want to ask leave to have purple hair during the week as long as they get it cut [laughter] when they come on drill we are okay with that. We actually had the short hair rigs in the 1970s. [inaudible] [laughter] i was going to say that with cyber, the program about 700 billets for cyber. What we found is because of the growth of the active component and the reserve component, the throughput in the cyber training schools just isnt there. We do not have the capacity. So we are looking at how to mitigate that right now because there is such a huge demand coming and we need to grow that training capability. So that is what we are looking at. We are also looking at Unmanned Systems supporting the fire scout. Right now the challenge for us is because of the sequestration and the budget challenges. We are not sure when those, when those systems are going to actually come on line. Its tough to program and you dont know if youre going to have to push that program held another two or three years. So it is exciting though when you get the potential. So, we are working on it but at this point we cant really say how soon it will come online. General grass . There is room on everyone to talk about this. I was there where we participate every year at fort meade. We have active guard reserve, dhs, fema, department of education, and since you cant determine at any given point where the cyber problem besides, you have to have all those problems. What general alexander and i talked about from the guard perspectives, the governors are interested in he would like us to maintain the authorities we have so that the State Government can do some things. We have some of our Cyber Warriors in the state going out to the doing of the vulnerability assessments on the state Emergency Management that works. Because of something pops in the state we still have to be able to function even though it may be a civilian dot come or dot gov that we are dealing with. We have a test case that well working with right now but i do think if i think about the active component and the guard reserve, every weapons system we are going to need a cyber experts. You Start Talking about the f35 and whats going to come out of that, so theres going to be image capabilities. Then you have the national and International Peace of that. What we are investing right now, we have 12 units in the guard that are some of them are already working Cyber Network warfare squadrons, for example, that are scattered across the states. Most of them reside close to a major metropolitan area that has those skills sets. And they are doing very well. So, now what we want to do is we want to look at how the air force and the army are going to create the doctrine for the future, create the structure and the training. So, whatever we put in a traditional reserve unit has got to look like the service, and its got to be trained and certified to this service so we dont create something ad hoc that we can take anything from a state mission to the guard all the way to the federal side. All right. We have a hard stop in five minutes. I would like to talk to each of you. A tough question brought up by senator levin and then we will turn it over to general punero. On Sexual Assault are you doing for that . We are constantly reinforcing that almost every meeting if needed. It is his top priority if he were to ask him. That is his top priority. What are you doing on the drilling level . On the drilling level again, we are integrated. He requires to talk about the commanders responsibility. It goes through the area through the district commanders right down to the field level. And when he speaks he looks at all hands as reserved and active duty and makes sure he is sharing the same expectations and accountability and consideration. General jackson . The air force has stood up and in these times we arent doing this anywhere else. Its in the air staff, the Major General maggie woodworth, and the top priority is to fix this. There are too many reports and instances and we will fix it. Within the reserve component of the air force and putting us and the National Guard took a stand down date to have that discussion and also pushed out the tools the commanders can use and so that is what we have been doing. Hes very concerned about it. We had a stand down with three stars. Every threestar had to address all. I went to the reserve center in texas to address the reserve component. And we are stressing three things. First of all, the real emphasis on the east coast training at every level, both in the entry level training and then continuing our pme and the list of officers to talk about expected conduct and the ethos of being a warrior and treating everyone with fairness and dignity. The last thing is we are taking a hard look at being able to harden the target if you will by getting the supervision back on the reserve component, getting supervision into the places like hotels where they spend their time during the drill weekends to ensure the proper level supervision is there and that you ensure the folks that would come in and do harm are identified quickly and separated just as quickly. The navy is doing the same thing as the marine corps. We are very much into the barracks come in to where our sailors are on the drill weekend and throughout the week. We found that about 50 of the reports have to do with alcohol, and so we are pushing a campaign of keep what you alone. Basically you dont keep the rink that you alone. Trying to curb the alcohol use and the incidence that we have not only with Sexual Assaults, with alcohol the involvement and also dui and all of the misconduct that comes with too much alcohol. So i think that really we have done a number of standdowns in the navy and navy reserve. And so, when this last round that was directed we do stand down i think everybody really had the opportunity to realize okay, this is my responsibility. Every sailor knows that it is their responsibility to help turn this around. And every commander knows that it is their responsibility to help fix this. So, i think that we finally have gotten it down to the individual level to say not in my navy come off in my service. Basically it is part of the solution to this. But i do think that all alcohol is such a big factor in this that we have to continue to push that responsible drinking is important if they are going to do that. So, thats really where the navy is right now. I think the opportunity to get down to into hotels is good where the reserves are staying. I think thats really important to do. And the good thing is we are seeing increased reporting of events that happened years ago, months ago and years ago, so i think that shows people are feeling more comfortable standing up to report whats happened so theres a lot of that past Incident Reporting right now. The army is doing much the same as the services. We have had a stand down and theres a lot of enhanced tools on the web site that has been devoted to this from the leaders of the senior level down to the company and the detachment level to utilize in their units. Its general odiernos number one priority and i think to speak to your point, admiral braun, for the old soldiers and young soldiers as well we are all part of a team and have to respect one another. If you see something you have to Say Something. That speaks to the reporting of people feel comfortable whether they have then a victim of harassment or assault or they know something is going on and they have a responsibility to report. National guard . A few months ago the president called all the joint chiefs and with the unlisted and the secretaries to talk about this problem and he wanted to understand what help he could provide the defense to tackle this and put his focus on it. Since that time, secretary hagel meets once a week with all of the services and putting my vices and he has a series that he looks at. He gets briefed on the issues of the macrolevel. He expects all of us to be working below that level. I would guarantee you we all are. Its a top priority. What weve done in the National Guard is we have taken two hours out of every conference that we have now. We do it once a quarter and bring in experts from the field to talk about the problem in this society to talk about how it translates to the guard men and women and then also i think what is happening in the court system and how we make an effective case on some of the ones that we may not be able to prosecute. We are also giving a stand down across all of the army guard, air guard armories and we have to have those reports back that everyone has been recertified as recruiters, the medical professionals we use and everyone has been briefed by the end of september. We have to certify back. I would tell you that the hard part for us in the guard and im not sure if the other research chiefs deal with the same issue took the title 32 issue on the steep active duty if something occurs and there is no ucmj on that date we have to turn over local prosecutors. I would tell you as the chairman said cut if there is alcohol involved a local prosecutor wont touch you. So we have to keep ucmj. We are pushing the states that dont have the title 32 ucmj to put it twice a week and prosecute to the acrosstheboard we have trained 31 special investigators so if a prosecutor wont take it we will send someone that these and even from that state or community out to do the investigation to begin and end if nothing else we will go after if we can prove the victims or prove the case we can administratively processed. Thank you. Closing words . So you have heard about a lot of headaches and positive opportunities and here is the key. Each and every one of you share today in a Representative Democracy of this great nation can make a difference both individually and collectively. And i use as a prime example my colleague from the commission on the guard and reserve, the colonel don out there slaying dragons every day and keeping us all honest, if that is you in uniform raise your issues up for the chain of command. You have the opportunity as the reserve guard and personnel to speak to your elective representatives. The people in this country have always made a difference. And so, if you dont speak out, if you are not engaged and you also have a tremendous talent as you have seen on the stage here today, the military leaders of the guard and reserve defined as the group that we have in my 40 plus years of working these issues, they are carrying the fight everyday in the building and they need your support and the need your active engagement. So the bottom line is if we dont want these things to go in the wrong direction, each and every one of you can and should make a difference. So we thank you for being here and for giving us the opportunity to visit with you here this morning. Dont be a stranger. Let us hear from you. Thank you very much. [applause] we have a valuable thank you under the threshold. Please hold your seats after i had these out because we have some important notices that we need to pose with you. General anderson. Why is that bigger . [laughter] its not a tiffanys box. General grass. Come on, are me. Lets go. General grass you are recognized in uniform. General punaro. And we have General Mills. Why dont you get it together. [laughter] thank you. General jackson. Admiral day. Thank you. [applause] this is a huge story because the first time that a true digital native has stepped into one of the legacy Media Businesses and newspaper Broadcasting Company, and if he acted in any way like he did and disrupting the Book Publishing business, the bookselling business, the ability of distributing the media and certainly the e commerce, then he probably will disrupt and reinvention what it is to be a newspaper in the 21st century and how that business remains a business need journalism itself is changing. Its manifesting itself in different ways with is a blog or through twitter even for that matter. So the intersection between video and newspapers these days. Its hard to see where it is headed. I think we are at this stage it is still being figured out. And by teeing the post i think that is one stark example of here is one possible future for the newspaper. The of all of the handsome young officers surrounding my grandmother who was 23yearsold at the time and very beautiful my grand father had been trying to talk to her but he couldnt because of the hand some men are around but when he took ship they all watched them go upstairs to do what they had to do and left her standing there. My grandfather started going up the steps and the sort of came running back, her father is dead. When she heard that my grandmother fainted right back into the arms of the president. He caught her tenderly and gently. Influence and image, looking at the public and private lives first ladys week might all this month at nine eastern on cspan. Socalled lost boys spoke at a summit held by the u. S. Agency for international development. Abraham awolich is the founder and president of the sudan foundation. He was displaced from his village in 1988 during the sundaneese civil war. He and other refugees during the conflict. It is also includes remarks by the former unicef director Carol Bellamy. This is about half an hour. I appreciate you all coming today. Those of you that will present, and those of you that were here as consumers of information we appreciate having you here. Thanks so much. Lets just get right into it. I would like to introduce Carol Bellamy whos been the director of the peace corps, executive director of unicef and ceo and president of world of learning. Shes retired as the chair partnership for education. Her personal accomplishments and education are of precedence. Shes been a pioneer leader in Global Education and a leader among women of my generation and generations of younger women as well. But behind her title is the hard work of leading organizations dedicated to making the world a better place to be a child. What better work is there . I am honored to have known her and worked with her for a very short time. Please welcome Carol Bellamy. [applause] i appreciate the comment about generations that the older you get you will appreciate it. [laughter] i occasionally stalled it stopped on the street by somebody that says my grandmother thought that you were just wonderful. Thank you very much. You have a very substantive day ahead of you. I always like the first session because it is the one that you are finishing your danish and wondering what section you were going to participate in today. I will go through this as painlessly as possible and i told that genie is coming so you will hopefully get to hear from gene. Ive been asked to talk about how we got where we are today. How we have a stronger focus on education and conflict than we had a say a decade or even five years ago we were just talking about. And its really only in the last five years if you will. It seems to me that yes, theyre has been a rapid and significant shift in thinking here. Isnt that long ago that education during the conflict was something of an afterthought. Today the attitude is very different with education seen as a central pillar in the response to any conflict alongside the shelter and food. As a pillar of conflict prevention and a fundamental importance in the wake of the conflict and emergencies. How this attitude plays out in the actual practice, however, is another matter. But at least now there is a global consensus that Education Matters for the future peace, security and prosperity. And that wasnt always the case. I can see various milestones of the changes in attitude and so just a threat this is actually my personal view based on my unicef years and Global Partnership years if there is nothing scientific or offical and indeed it is seldom anything that is scientific and official. Back in the 1980s and 1990s, the priority would seem very much as survival. Survival itself. Hardly surprising when you consider a around 13 million children died from largely preventable causes before the age of five in 1990. There was down from roughly 20 million in 1960. It is still the entire population of the state of illinois. If the whole state of illinois disappeared somebody would notice but nobody was noticing that 13 million children were dying from preventable causes. The focus is on the survival and revolution after this cause. That helped push down the number of children dying from easily preventable diseases and conditions. At the same time the development is the second key element in the revolution starting to come into the ever sharper focus as people realize that survival alone is not enough. Survival for what . For the life of ignorance and poverty. Education was increasingly position that the very heart of the development of creating better prospects for individual children and for their nation. The whole raft of commitments came into place to spur the process. It would be 1989 u. N. Convention on the child crc and the commitment in 1990 and of course the Millennium Development goals in 2000. The accessing completion of primary and the gender parity in Primary School. Serious promises that were made to educate every child in every country peaceful or not. A member of Development Organizations at that point for putting tolls in place to keep education growing in emergencies Unicef School in a box became a standard part of its response to the emergencies. Like all the best ideas come if this one was quite simple a box packed with everything a Teacher Needs to work with for up to 40 children. Text books, pencils, posters, sleet boards coming even a can of paint with which to paint a chalkboard. The team to get schooling up and running again in just 72 hours of an emergency. And the response of children and families to such measures was part of another shift. A growing recognition of the importance of education and conflict. Not only as a vital tool pulled out of the drawer marked development where it had been left alone for much too long. But also as a key part of child protection. A tangible and effective way to get a scared and uprooted child a sense of normalcy. To give them one safe, secure and fixed point of reference in a world gone mad. Succumb education became increasingly part of the to do list when in the emergency and the conflict erupted. Okay. That is the good news. But we cant say that everything was rosy. Worldwide, as you know and all of the materials the number of children out of school has dropped from over 100 million in 2000 to 60 million in 2008 to 50 million in 2011. More good news. But there are two problems with this. Again as you all know First Progress is slowing and in africa it is flat lining. Second, product has bypassed children in conflict. As the recent save the children report attacks on education shows, these children account for onequarter of the worlds Primary School age population. But about half of those out of school. Whats more, the account for a greater share of children out of school today than they did just a few years ago. Up from 42 in 2008. The impact is appalling. Children in conflict deflected countries are nearly three times more likely to be out of Primary School and the children and other lowIncome Countries. Secondary enrollment rates are one third lower. These countries have some of the largest gender disparities and the lowest literacy rates in the world. The schools are still in the firing line with classrooms, teachers and people seen as legitimate targets that are caught in the caught in the crossfire. Mali. In june of this year, unicef estimated the education of 700,000 children had been disrupted by the conflict of the past 12 months. Syria. Conflict shattered what was almost universal primary enrollment. By the start of this year almost 400,000 schools had been destroyed, occupied or used for Something Better than education. By april of this year, 22 of the countrys 22,000 schools were unusable for education purposes. 1500 schools had been destroyed or damaged. Shifting back again to a little bit of good news. So as i said when i started, we have come a long way. There is a general consensus among policy makers that any disruption of schooling as a result of conflict must be at rest. Immediately alongside food, water and shelter. There is consensus keeping education going through thick and thin during the conflict and long term tension is something that must happen. It is not just an optional extra. And there is consensus on the importance of education and prevention of conflict. And there is a consensus that schools shouldnt be used to foster intolerance and so the seeds of conflict in the future. But there is one big fat gap between all of this consensus, welcome though it is coming into the reality for too many children on the ground, their teachers and their communities. Why the gap . In my view in the rush to reach the 2015 deadline i think theres been too much emphasis on reaching the low hanging fruit. The children who are the most easily reached and most easily documented. Obviously this doesnt include children caught up in war zones, hence their dominance among those out of school. Then there is the lack of investment. We back in 2001, they pointed out the sector was receiving just 2 of humanitarian aid. Today the situation is even worse. According to the gm our team, the Global Monitoring report, the humanitarian aid for education is falling. In 2012 education accounted for just 1. 4 of humanitarian aid. Whats more, education has hit twice. Not only does it get a small share over all, it gets the smallest proportion of the amount requested in any sector. Again an example. The Education Sector requested 45 million in january this year. By june it had received 9 million. So some challenges. And again i know today you are going to be drilling down on these issues. So i am giving you not the natural down version that some thoughts about what we need to do. First we need to recognize that overall progress on access to education is not making a big enough dent in the proportion of out of School Children in the conflict affected countries. Yes we can applaud the progress that has been made, but we need to drop the complacency that i see creeping into the the date on education. We need to stretch just that little bit further to reach the children that are thought to be beyond our grasp. Second, we need to focus on quality. Even in the war zones as an essential part of access. It is quality that keeps children learning and it is the quality of education and education that nurtures open debate, tolerance and conflict resolution that paves the way for the more secure and prosperous future. It is selfevident that what happens in the classroom is absolutely fundamental for the collective future security of our global families. A good education helps children make good traces for themselves and for their communities. They learn that the ordinary conflicts that are part of everyday life do not need to spiral out of control into violence. They learn how to cope with pressures, how to respond with grace and how to value each other. Third, we must make the case to policy makers and here im talking about donors and developing countries and all the policymakers, parliamentarians and others. We need to make the case to these policy makers using bottomline members. Lets keep it simple. And we need to keep it simple. The worst thing about education is they can see it and in the 100 words they say it in a thousand. [laughter] its simple. Dont done it down but simple and clear. Keeping the school and ran it down enrollment down and the conflict by 3 . And the length of the conflict calls as male enrollment rates increase. We need to talk to policy makers about waste, the waste of lives, prospect, pope. But we also need to talk about the sheer waste of resources with 21 developing countries spending more on arms and Primary School. Fourth, we need to shift the priorities for such investment so that Education Funding is all about education. Rather than any external security interest. Finally, we need to acknowledge that education is everybodys business. Not just the business of administrative education as important as this. Governments are still the key players that they are no longer the only players whose investments are important. We have a private sector whose investment out strip aid and we have new donors that are working in partnerships across the global south. We have an ever Stronger Civil Society that is shaping the local solutions and most importantly, we now see and hear a thanks to the new technology the most marginalized and Vulnerable People in the most desperate circumstances telling us what the need. We need to be guided by them and respond to them. So thats why i want to commend usaid for the conflict of the goal. I know those numbers may be aspirational but you need those numbers to push progress. And for this session because the session, not this session but that follows this session because it really is going to the issues that have to be dealt with in a very serious way and to learn initiative. I cant conclude without also a acknowledging the Global Partnership for education now is taking education and conflict or serious despite the talks for several years and is working with that. There are other signs of the renewed determination to address this, certainly the secretaries First Initiative and the education cannot wait to call for action. All of these are particularly encouraging. Children cannot wait for the war to end. There is no pause button when it comes to education. The conflict in the lower Income Countries from 1999 to 2008 lasted for 12 years. This is longer than most children in the countrys what typically spend in school. The modern conflict is overwhelmingly the internal and long term. Todays war is never decided by one decisive battle or campaign. War is also fueled by ethnic or religious or tribal fault lines and the need to the solution that solves everything for everyone is extremely unlikely unless the fault lines are addressed once the conflict is over. This requires all of us to position education front and center as a crucial part of peacebuilding and state building. As an effective way to help the countrys heal their wounds and prevent violence in the future. We need doublefault to play the game. Thank you very much. [applause] nobody knows more about the subject than she does and nobody says it better. I feel like i am almost in the way by coming back up here because when you said at the end is such a transition to the next speaker. Actually, south sudan is one of our to learn a country is and its appropriate that we have our next speaker here. Abraham speed is the founder and president of the Sudan Development foundation. He received a masters degree in Public Education from the Maxwell School of citizenship and Public Affairs at Syracuse University. His experience in international development, ngo management and his entrepreneurial spirit provide the engine to propel his foundation to meet the critical challenges of south sudan. His unmatched commitment to the development of his country and community lies at the heart of his unwavering drive for change. Abraham is one of the lost boys that founded the sudan default and foundation for his commitment to rebuilding south sudan communities. Please join me in welcoming abraham awolich. [applause] thank you very much. Good morning everyone. I just want to acknowledge and not an expert on education per say, but im involved in education. And this morning im going to share with you just a little bit about my story about the things i am working on and how i came to work on these things. Many of you are aware of the conflict that has been going on in sudan for so many years. Millions of people have been displaced and many lives have been destroyed and they continue to be destroyed today. Why was one of those people that had been displaced by the conflict in sudan. I was displaced and got recruited into the sudanese people. The first time fi was introduced to the school was when i was a refugee. We were denied the schools in our own country and i had to break every record in my family. I was the first person to go to school and my family and i was the first person to finish Primary Schools in my family. The first to finish secondary school and first person to go to college and the first person to get a masters degree. So you can imagine that is just my family. Some families have not broken any record yet in these areas especially in integration. So my experience the trauma of being displaced and having to move from one to another in east africa turned different. When i returned home in 2006 after 18 years of displacement and suppression from my family i found that people in the village where where they were when i left. None of my friends have ever been to school and so that generation, my generation is completely lost. Im not even talking about my parents generation. So i was traumatized by this because the opportunity that i got learning from the refugee camp to read the first time that i learned to read and i began to look at things on paper, the first thing i saw was usaid on a box. [laughter] i am not trying to plug her, its true. The food that was supplied to us in the refugee camp came in boxes or bags and they said usaid on it. I didnt know what it was or what it meant, but i could see somebody shaking somebodys hand and there was something written like that. I couldnt make any meaning of it that is the first thing i learned to read. So you can imagine that this effort, they make a difference. So the fact that i am standing here today shows i am a product of this International System through the unicef and the usaid we support in those refugee camps and we went to school. It didnt have to be a nice school. It could have been under the trees or in some shelters. But at least it produced me and i am here today to testify to that. After a number of years in the refugee camp i came here to the United States as a refugee and i finished my school in kenya where i was a refugee for nine years and so i came here and i felt prepared and i was able to go to college and finish my college at the university of vermont. And then later on i went to Syracuse University for my graduate studies. But then i went back in 2006 like i mentioned in and i found the conditions in the country were really bad. And there was a agreement that was just signed and a prospect that south sudan would become a new country, which it did in 2011. But there was not much preparation in terms of Human Capacity to run the country. Many of the people that are running south sudan right now were produced and there were only a few that were accepted into the high schools in sudan and mabey colleges. But there are not that many. And then a number of people now that are able to make south sudan and a number of people producing the refugee camps. But the country still is not in place to produce people that can run the government or run the society which is why we continue to have a lot of problems. So we started a program that would try to contribute to education. So from 2008 through the program that we call the Education Initiative we were able to build a secondary school, a secondary school that was able to recruit students, mostly fema students in the curriculum also Specialized Skills. And what we named the school is of health sciences. Some students were learning how to become nurses or Productive Health advisers regular Community Health workers. Because it wasnt just about education. Was also the need to train people on specific things that are needed in the community. So, we are involved in this idea of the Technical Education because the need in south sudan and the generation gap is so high so that the Young Children now are going through primary education there is another generation, my generation. Its very hard to sit them down in first grade and get them to learn. So you kind of have to deal with them by giving them every technical skill so that they can get jobs and become a useful force in the country and if this number of young people are unemployed most likely to fall prey to a number of war lords that are looking for the force. So these are some of the activities that we are running right now. And of course when you have an opportunity like i did and you go to a country like south sudan and you have to multitask so i worked on the post in the program that we created and what it does is it tries to inform the government to develop policies that our core to building a Stronger Foundation for the nation. In making the specific laws like education and health. So im involved in that in a number of us are involved in that policy because the country means that as well. If the politicians are left alone, many of them have not been exposed. Based on how they feel but not on what information is out there. So i would not along my talk today but i would just say that usaid and the u. N. And other agencies involved in the conflict zones are providing vital educational services. That is applauded because if you do that, it may not be possible to get everybody, every child that is in the conflict to graduate from college or to have a masters degree, but you will have individuals like myself that will make it through and they will turn around and they will give up their communities. And i am very sure that if you have a number of people like that in those communities they will change lives because they will know exactly what those people need because they were there at that time. Thank you very much. [applause] site of the Media Business is a huge story because the first time that a true digital native has stepped into one of the Media Businesses, newspaper or Broadcasting Company and if he acts in any way like he did in disrupting the Book Publishing business, the bookselling business, the delivery of streaming media and certainly e commerce, then he probably will disrupt and reinvention what it is to be a newspaper in the 21st century and how that business remains a business. Journalism itself is changing. Its manifesting itself in very different ways with their it is a blog or tauter even for that matter. So the intersection between video and newspapers these days. So its hard to see where it is headed. We are have a stage it is still being figured out. With jeff basos combining the post here is one possible. In just a moment we will take you live to the Senate Floor Meeting at the top of the hour for what should be a brief pro forma session going in and out quickly. They continue their august break. We expect the senator is back for work at 2 00 later that afternoon 5 30 would be the first votes of september on a pair of judicial nominations. We will take you live to the senate floor here on cspan2. The presiding officer the senate will come to order. The clerk will read a communication to the senate. The clerk washington, d. C. , august 12, 2013. To the senate, under the provisions of rule 1 paragraph 3 of the standing rules of the senate i hereby appoint the honorable benjamin cardin, a senator from the state of maryland to perform the duties of the chair. Signed patrick j. Leahy, president pro tempore. The presiding officer under the previous order and pursuant to the provisions of s. Con res. 22, the Senate Stands adjourned 22, the Senate Stands adjourned and just about an hour from now attorney general eric holder expected to announce that nonviolent drug offenders with no ties to gangs or large drug operations will no longer face severe mandatory sentences. That part of a series of Prison Reforms hes expected to unveil during remarks to the american bar association. On whether goth Public Affairs offices are a help for the government. The panel will include journalists and Media Communications firms. Booktv in prime time continues this week. Tonight after the communicators well bring you authors from book fairs and festivals. At 8 30 p. M. Eastern, we begin with Oscar Goodman at freedom fest. He talks about being oscar from mob lawyer to mayor of las vegas. After that well go to this years Chicago Tribune printers row Literary Festival on the cooked seed. Then on to Bookexpo America in new york city with err ya jong erica jong. And we finish with author and radio talk show host larry elder at the Los Angeles Times festival of books as he discusses his memoir about his troubled relationship with his father in dear father, dear son. Booktv in prime time all week on cspan2. Of all the handsome young officers surrounding my grandmother, who was 23 years old at the time but very beautiful, my grandfather had been trying to get to her and talk to her, but but he couldn. But be they all rushed to go upstairs to do what they had to do theyre trained to do and left her standing there. Well, she fell in behind them. My grandfather fell in behind her going up the steps to the deck. She came back dont let mr. Gardener find out her father is dead. When she heard that, my grandmother fainted right back into the arms of the president. He caught her tenderly and gently. This week the encore presentation of our original series, first ladies influence and image, looking at the public and private lives of our nations first ladies. First ladies, weeknights all this month at 9 eastern on cspan. And during tonights program, join in the conversation with Colonial Williamsburg historian Taylor Stoermer at facebook. Com cspan. Former u. S. Coast guard commandant admiral thad allen says in crisis situations the federal government has no choice but to act immediately and sidestep barriers that exist daytoday in nonemergency situations. Mr. Allens comments came during a discussion on managing the federal government at the partnership for Public Service last week. Mr. Allen directed the federal response to hurricanes katrina and rita and served as the National Incident commander for the Deepwater Horizon Oil spill. He joined other officials with the Government Accountability office and defense and Homeland Security departments. For those who arent familiar with the partnership, we are a nonpartisan, Nonprofit Organization thats dedicated to trying to make our government more effectively through people. We are a talent organization, and we believe that Good Government begins with good people. And i am really very, very excited about the release of todays report because i think its a fundamental issue for us about how we can do more not just with less, but in a world that is changing and ever more complicated and dangerous ways. And we think we have provided a framework that can help answer that question. Before starting on the report itself, though, theres a lot of work that goes into these things. I want to thank Booz Allen Hamilton for their extraordinary support for this effort and their great partnering with us at the partnership. And in particular i want to single out ron who is sitting up here in front who youll hear from in a second whos himself an extraordinary Public Servant, who has done some great things in government and has been a great partner. And also dave mater who i dont think is here right now but has been, again, a great Public Servant and a great friend. On the partnership side, again, these things take a lot of work, and there are several people that i want to thank and identify. Sally jagger, who is back here, long, long time gao Senior Executive who generously decided to retire to work even harder with us at the partnership and has done some great work with us. Ann laurent, a new addition to the partnership team. Again, wide, wide range of experiences and and great commitment to these issues and contributions as well. So great to have you here. Seth melling, who is older than his years appear and has also been a great addition to our team. And bob cohen, a very experienced and exceptional journalist who has been taking his journalism skills to help make us more effective. And the leader of that whole team and all of our Research Effort as well as our communication effort is lara shane, who you also will be hearing from. I cannot resist noting that today is her eighth anniversary at the partnership, so if i could have a great round of amaze for lara. [applause] so president obama recently called for, quote, an aggressive management agenda that, quote, delivers a smarter, more innovated and more Accountable Government for its citizens. We believe that this report answers the call by proposing nine strategies that can create a more integrated and effective government. These strategies actually address two different areas of opportunity here both around the Mission Achievement side of things, so how do we get the core objectives of government done, but also the Mission Support activities as well, the i. T. , the procurement, etc. , and again, youll hear in greater detail from ron and lara about what those strategies are. But we titled the report building the enterprise because the central theme is together were going to achieve much more both more effectively and more efficiently than we can as we currently run 100plus separate entities off on their own, doing their own thing. The best metaphor i can think of in washington is, obviously, right before us right now. We have some amazing talent on the nationals, we have the great switching with strasburg and great hitting with harper, but it doesnt work if they dont work as a team. Thats fundamentally what this is about, how do we get government to work percent as an integrated better as an integrated team . This is serious. This is about the most important things we face as a country, and achieving our goals as a nation through the hard work of our government. So with that im going to turn it over to lara and ron and have them do a presentation about the findings of the report. Thanks, max. Thank you. Hi, im regis, and this is kathy lee. [laughter] we figured that since this report is about multiagency collaboration, we are going to take a collaborative approach to this presentation. But i wanted to start by telling you guys that we launched this initiative about a year ago, and we started by interviewing about 40 of the smart best people we could find that were former reformers, current reformers or academics who had been studying reform for a long time. And we were hopeful that there would be this easy consensus, and wed come up with, you know, the five things you can do today to fix government. And it was a little harder than that. [laughter] so, but consensus did emerge, and it emerged around two core themes. And the first was that todays fiscal environment provides more than just an opportunity to change, but really an imperative for change. There are and we really feel like theres tremendous opportunity and a tremendous need to take a really hard look at this topic. And so were excited by that. The second area of con census was that really that today government operates largely as a set of Holding Companies that are each doing their own thing. And that what we need is a more wholeofgovernment, interagency approach to our government. Except in times of crisis where you do see government able to respond as an enterprise. And in a time of crisis, government brings all of its assets to bear down on a problem to great effect. And our core belief is that this needs to be the standard way that government does its business. This needs to be the way that we get all of the work done on todays complex and intractable problems. So that thats why, thats how we arrived at the central premise of this report, that we can be more effective and more efficient both on the programmatic side and on the efficiency, kind of Mission Support goals if we take this enterprise approach. So those of you that have worked in government or studies government, reported on government know that its organized vertically. Some characterize it as cylinders of excellence. The idea of working together as an enterprise is almost an unnatural act. You can declare it, but youve got to build a management infrastructure to actually make it happen. Management infrastructure isnt all that sexy, but those are the things that keep the engine of government working. So lets start with the definition of terms, what enterprise is and what it is not. So max and lara have already made reference to this. This is, essentially, the whole greater than the sum of the parts. Individual agencies working together. If they work separately, the big problems our nation faces wont get solved, if they work as an enterprise, theres a much better chance of that not just in crisis, but for those enduring, endemic challenges that the nation faces. But enterprise is not centralization. It is not one size fits all. In fact, we are not going to argue that government should massively restructure to change those vertical stove pipes. We all know what happens with a reorganization. Some of its objectives get accomplished, but more often than not there are an order of magnitude more unintended consequences. So were not talking about rearranging the boxes. Keep the vertical structure, but build some management infrastructure that horizontally cuts across government not in a way of centralizing, but in a way of getting agencies to collaborate and coordinate that it and integrate towards common end. Great. And i would just add to that, that our approach was a fairly practical one. We didnt want to reinvent the wheel, and we know that there was a Foundation Laid for this approach with the government performance result act, modernizationing act. [laughter] so, you know, with the goals. They have established crossagency priority goals, theyve established goal leaders, and we wanted to build on that foundation rather than add additional layers. So thats what this report does, its really trying to build on some great things that are already happening and to commend some prior efforts. Ill underscore that. This is not about completely new start. There are everything were going to talk about today has been done somewhere in government. In some cases interagency, in most cases within a single agency, but these are tried and proven strategies that were suggesting just need to be taken to scale. With right. So the first one is to develop an Enterprise Performance plan. You know, what were really looking here is to articulate those areas where government needs to act like an enterprise to take on the most challenging goals beyond the current identified goals. The cap goals. And we believe that this plan needs to be developed and implemented by the pmc but needs to be owned by the president and the cabinet. And the reason we arrived at that conclusion is im going to play fortune teller for a second, and you might be thinking this cant be done, its too hard, or we already or have a strategy document, and its called the budget. [laughter] so im going to take that on. This was done. It was done in the late 1990s. I am assured it was a very laudable effort, but it kind of died on the vine because of the fact that it didnt have the leadership sponsorship. And thats why we feel very strongly that with leadership buyin and ownership this can succeed and needs to succeed. Was the budget does not because the budget does not suffice as a strategic government. It is a list of everything that government is going to do, it does not establish priorities, and it is vertically organized meaning, you know, it perpetuates the status quo. So we need this Enterprise Performance plan. And, you know, we really think that the pmc is who is the right place to own b this because the gpmra established the coos as this kind of board of direct. Yeah, they need to be the champion, and theyre chaired for the Deputy Director of management at omb, we think thats the driving body here, theyve got to own it. All right, so how do you organize it . A strategic plan, again, organized around the budget, is just a collection of numbers. Were talking about an enterprise plan organized around a set of portfolios, a portfoliobased approach to this. Just like an investment portfolio, take three areas president ial priorities like the cap goals, but also crosscutting missionaries, everything from food safety to counterterrorism and everything in between and offer common Mission Support functions; hr, finance, i. T. All of those things are amenable to an enterprise approach. All of those things would find their way into an enterprise strategic plan, all of those things would be organized in portfolios. Lets take the food safety portfolio as an example. Youll hear from gene dodaro later, there are dozens of agencies involved in the food safety mission, and there are probably a dozen different departments. And while they all play nice together, theyre still vertically oriented. Think of food safety as an enterprise portfolio. Looking at all the programs in that portfolio, the ones that work well, the ones that are risky but have a high payoff, the ones that are not risky but dont really contribute to the larger goal. If you manage their portfolio as a balanced approach to getting the enterprise goal accomplished, youre going to approach it in a far more integrated, holistic way rather than looking at each of the individual pieces and parts. But a plan and portfolios only get you so far. You need to lead it. Right. So as with most efforts, you know, this is going to the success of this approach will be contingent on the leadership of it. And so were talking about both designating and empowering enterprise goal leaders. As weve mentioned, this has been done. Right now most of the goal leaders are officials at the white house or in the president s executive office. And, you know, thats great. But i think to take this to scale, it may not be possible that a goal leader is always going to be a cabinet secretary or part of the white house staff. So what we are envisioning is a way to empower goal leaders that may not have necessarily the backing of the white house office. And so what we want is for them to have a performance, we want them to be appointed by the president and have a fiveyear term contract, performance contract with the president or pmc. And what we also really belief that they need believe that they need and, again, to take this to scale and to be really successful is dedicated fulltime staff. Because right now the current goal leaders are white house aides in, many cases, they have a ton of responsibility they have a day job. They have a day job, and theyre pulled in a thousand different directions. So its imperative that they have some support. And well talk about some Additional Support that we think they need. But, you know, we want them also to have input into budget submissions of the portfolios of all the programs in the portfolios, major i. T. Requests for, to support one of the programs in the portfolio. We want them to have into. And we want them to be able to offer feedback on the individual performance of the executives that lead the programs in their portfolio. And we believe this is very important for them to be effective. You know, right now you have an example of two goal leaders that are doing a great job with the veterans homelessness initiative. And, of course, that is secretary shinseki and secretary donovan. And this is an example of where they have had dedicated staff to this goal, and theyve reduced veterans homelessness by 17 which i think is quite remarkable in the current fiscal climate. The economic climate. And so, you know, what we want to do is to make sure that the success of this isnt personalitycomment. You know, ron and i get along we do. [laughter] we do, were best friends. So, of course, this is going to work. We want to headache sure that there is structure and support in place so that this can succeed in an environment where its not necessarily personalitydependent. And heres how you sustain it, and i put dibs on this particular strategy because its a favorite of mind. Its great to have cabinet and subcabinet officials as goal leaders. As weve argued, this isnt just about president ial priorities, those are important, but its crosscutting Mission Areas and common functions. You need senior career leadership to sustain focus on those. And some of you are going to think, well, isnt that what the Senior Executive service was created for . This is, in respects, a back to the future strategy. Because as we know, that vision has never been fully recognized. You cant just declare it, that was one of the flaws of the Civil Service reform act over three decades ago. They just sort of said it. This is about building the infrastructure to make it happen. To find those who have intergovernmental, Even International perspectives. You cant just say we want you, and theyll magically appear. So wed even go so far as to create a sixth executive core qualification. As you know, opm has five, all of which focus on leading an agency. Wed create a sixth that says leading the enterprise. Wed even make it mandatory. Maybe not for all executive positions, but certainly for those involved in the strategies were talking about. And wed create an enterprise executive Resources Board. Every agency has an erb. Its chaired by the deputy secretary or some other senior official equivalent. Theyre the ones that move the chess pieces around making sure that the leadership pipeline is robust, that they have the talent, the succession pool, but also to make sure that the career talent is in the right place doing the right jocks. But those are agency centric and, frankly, most agencies look at their core executives as their property. You need an enterprise be Resources Board thats going to look at at least some subset as corporate resources, make sure theyre developed so they have that corporate perspective. The military has done this for now almost three decades with their version of joint duty. The Intelligence Community, something i was involved in, has five years ago made this a mandatory prerequisite for senior, executive ann of at least a year of duration or more. Thats what gets you that perspective, helps you build those relationships that cut across those cylinders of excellence. And be an eerb we apologize for the acronyms but an eerb is the mechanism. The pmc, wed also put career executives on that eerb. Thats the body that would actually insure that enterprise executives were there to support goal leaders. And the, one of the things i mentioned before was the support that the goal leaders are going to need in evaluating their portfolio. And we want these goal leaders to really look at the president and look at the office of management and budget and say im not getting what i need, or i have what i need, but i would like to make some changes in this portfolio. Here are some programs that are working really well. Ive got some programs that are underperforming. I want to eliminate this program, and i want to invest doubly in this program because this is the one thats really succeeding. I think this is a challenge for government. We dont always know which programs are really showing the result and which ones arent. And i know a lot of people are paying a lot of attention to how we measure be performance better. We would propose providing the goal leaders with more support with this regard by establishing an independent office of evaluation either in the eop or in omb, but we want it to have the very clear directive of supporting the goal leaders to say i will help you figure out if your portfolio is succeeding and which programs inside are helping drive that success. So we want this to be staffed with big data expertise, and we want these career to be led by a career on a sevenyear term. And youll notice whats not in that title, its not an office of program evaluation. Again, thats that bottomup, piecepart perspective. This is about outcomes, enterprise outcomes, president ial priority, Common Mission areas, etc. All right, weve talked about how to improve the effectiveness of government in accomplishing its big goals and important missions. Lets switch tracks a little bit now and talk about how an enterprise approach can make government more efficient. So weve got a couple of strategies that we think will do that, leading off with Information Technology. If there was ever a common function be, its i. T. The networks, the data center, the cloud, the licenses, all of those things, every agency has an enterprise resource plan. But they define enterprise as the agency. While omb has made Great Strides in making sure each agency consolidates its licenses and data centers, what we havent done as much of and what we would argue is look at enterprise with a capital e. Interagency data centers, common clouds, true enterprisewide Software Licenses so that you can leverage the governments great buying power. Well talk a little bit more about that in a second. And, again, i. T. As a portfolio of services run by a goal leader, supported by career enterprise executives to drive these things horizontally across all agencies. And another place where we really feel like on the efficiency side there are already some very strong things happening in the area of shared services, and we should commend anybody in the room thats working on these issues. A lot of good stuff is happening. But again, we see an opportunity to take this to scale. A lot of the shared services is still happening at the agency level and, again, its the same thing, how do you know, lets look at it from an agency level, and thats a great start. But how can we take that across the enterprise . You know, the first lobs were created in 2004 to do payroll, and some of them were transactional operations. But there is an opportunity to move beyond transactional and provide shared services in writing your Job Description or helping you get ready for promotion decisions and more of the, you know, more sophisticated personnel actions. And, of course, this administration has done a good job to say there are opportunities to use shared services in the finance and accounting areas as well and is are drive anything that direction. So what were really, again, encouraging is not just at the agency level, look across the enterprise. Air force has done this well. Its consolidated almost all of its Personnel Support Services for 500,000 people. Irs is doing it for 100,000 people that are geographically diverse, and 800,000 civilians covered by the same hr information system. So it is happening, and it can be done more so. Thats the theme here, more so. [laughter] this is a Glass Half Full report. Almost everything weve talked about has been started, and its all about taking it to scale. This is another good example, strategic sourcing. Gsa and ofpp, the office of federal procurement policy, are driving this. Theres even a strategic sourcing council. We want to put it into second, third and fourth gear. There are four common functions that that strategic sourcing council has teed up, things like domestic parcel delivery. The efficiency is there that can be achieved with governments massive buying power think a costco on steroids the efficiencies are just off the charts if we just push the edge of that envelope. So a great start, but we think more and with both strategic sourcing, looking at those common commodities that everybody uses and everybody buys, ill give you a great example that gene dodaros staff found, cleaning products. Every agency buys cleaning products, paper towels. They found one example where one agency paid 30 for a case of pape or towels and another paid 60. Thats not quite as exciting as a 700 toilet seat, but its still pretty exciting. [laughter] and strategic sourcing strategy applied across the enterprise would help squeeze the those prices down and get a better deal for the taxpayer. As we have more transparent pricing data. So just giving insight into what did you pay, what did i pay and beyond just the surface level, but on more sophisticated contracts as well. Just sharing. I have to tell you, i had this experience literally yesterday afternoon where were working on a bid, and there are some parts of the government that make pricing data and other buying patterns public and others that dont. That forces us to sharpen our pencils. If we know what our competitors are doing, with other going to sharpen were going to sharpen our pencils, and the alternative taxpayer profits. Hopefully, you guys are familiar with the partnerships mission, Good Government starts with good people. And that they, too, need to be managed at the enterprise level and not at the agency level. And so, you know, our feeling is that todays Civil Service is not adequate to support the Civil Service. Civil servants. And it hasnt been upgraded for 40 years, but the nature of work is dramatically different, and career patterns are dramatically different, and the system doesnt support that. We are actually working on another report that well release later this year with a lot of nittygritty details that i wont get into today. This is the movie trailer, right . [laughter] but, you know, this is a we really, you know, believe that weve got to take a more enterprise approach. Wed like to see opm develop a strategic Human Capital plan for those occupations that all agencies seem to be struggling with. So, for example, s. T. E. M. How can we look across and instead of, you know, im at ag and rons at Homeland Security and we both need biologists and were fighting for the same people, how can we would be together to get Work Together to get a great pool and bring them onboard . So we really would like to see that a happen, so wed like to start with this, you know, on the Human Capital plans for these occupations that were all fighting each other for, like cybersecurity professionals. And then well come back to you with a vision for what the civil Service Needs to look like, but we want it to be a more agile system that is market sensitive and promotes the ability to move in and out of the system more easily. So the system so old that most agencies, many, have tried to cut their own deal with congress, get their own flexibilities. Ill plead guilty to that in three different agencies. And the net result is haves and have nots, fractures and fissures. This is the glue that holds the enterprise together and, again, this is the movie trailer. Youre going to see something far more detailed in a month or two. So those are our nine strategies, an enterprise approach that we think will make the government more effective and efficient, and now were going to hear from some experts. So, max, over to you. Thanks, everybody. [applause]. In my view api will also add he is on my board. But thad will comoderate. I will follow in his wake. But, one of the things i wanted to note, he told the washingtonian magazine that he uses music as inspiration for his writing and his speeches and i want him to know when we were working on this report we were listening to sister sledges, we are family. So, we are family, dhs, dod, dot, Something Like that. Im not a singer as you can tell, but you get the idea. So thank you very much. We also have beth mcgrath, who is laughing at me right now, who is an extraordinary leader in her own right at the Defense Department. When you think about the scale that dod has to confront, the challenges of bringing together its disparate elements, thats really her job and it give as sense, i think the real sense what this kind of effort really takes. So it is great to have her here as well. We have gene didero, who is sitting here. So much what were talking about today really has been driven by the fabulous that gao does. And, you know, all of the reports identifying duplication, and as ron discussed earlier the collaboration that already exists is so important. One of our observations is that we have a system of a lot of different cylinders of excellence. In part we dont have anything besides gao which is frankly part of the legislative branch that actually consequentially looks across the whole enterprise and that is one of the real challenges and that is why we propose the Evaluation Office and more beefed up residents management council. Gene, we very much glad to have you here and appreciate your engagement in this effort. By last no least, challenge this gentleman faces but rafael boros, who has, the job of knitting together, you know, the last great reorganization effort that we had here with the department of Homeland Security. As the undersecretary of management there he comes to that job with a very deep, set of experiences and he is doing some terrific work there. So, both with rafael and beth well get the perspective of the immense job it takes to integrate intragovernment, intraagency and im looking forward to it. So if you all want to come up well start with that and ask some questions of the we will open this up to the audience as well. So be thinking about what you want to hear from them directly as well. Thank you. So, thad, you start us off. Thanks for being here this morning. Gene, i will put you on the spot right away here. We talk a lot about complexity and the growing need to look beyond the authorities, jurisdictions, abilities of one particular agency to solve complex problems and the need to network and collaborate. You guys actually produce Empirical Data that led to some of these conclusions. You want to make general comments about the state of the world the government is operating in from your view . Sure, thad. There are at least two main drivers, why i think it is really important to focus on the enterprise level. If you look at highrisk list we produce every year at beginning of each new congress. Weve been doing this since 1990. Since 2000 most of the areas we added have been areas and weaknesses that cross agency boundaries. Whether it is modernizing the financial regulatory system, managing and sharing of terroristrelated information. Ron mentioned overseeing the food safety program. Modernizing disability programs. Most recently we added limiting the federal governments exposure to, by better managing Climate Change risk. All these areas require multiple agencies. What we found as were looking across the federal government, as max mentioned, we have a broad scope, there really isnt effective means to be able to manage these programs. So weve been trying through the highrisk list to high heat these areas of vulnerability. I think it is very important. We need multiple age is to solve very complex problems and need partnerships beyond the federal level with the state, and local level and cooperation internationally in many areas. Weve been trying to highlight this i think it is more urgent with the fiscal pressures. With the budget control acts targets, in effect by 2023 Discretionary Spending as a percentage of Gross Domestic Product will be lowest in 50 years. I think urgencies and problems and fiscal pressures call for a change in the paradigm. If we take the level of complexity in the current fiscal environment as entering arguments i would be interested what rafael and beth think about when they approach that in their jobs and they both operate in very Large Organizations with autonomous components and their own budgets. This issue of Mission Execution and Mission Support across those intragovernmental stovepipes can be quite a challenge but i look forward to your views. So, thank you. And appreciate you all coming here today and sponsored bit partnership to bring this conversation together. Ive been in the federal government now for 25 years. So i sort of not only seen the movie but been in the movie. I think for all of that time, and i do think it is incredibly important to have the right perspective on i will say the approach to these very challenging, call them opportunities that we have. I think that the strategy, clarity on strategy is probably the almost the most important thing. We talk a lot about the silos of excellence. I think what we were referring to them and the department of defense certainly has many different components within it. Each with its own mission, but at the end of the day, you know, department really does, ill just say act as an enterprise. And with the, active guard and reserve, with our military component and our civilian, were about just over 3 Million People. If you take all of our numbers and where we are all around the world, and you know, we are the 16th largest country in the world. And so, when you talk about the enterprise from a defense perspective, it is massive. Then add the rest of the federal government and say, what is the best way to manage and approach, you know, trying to hit some of these Strategic Outcomes that were talking about and it really is, you know, a heavy lift that starts with strategy and clarity of outcome. What outcome are you trying to achieve and how do you do it . I mean simply put thats what were talking about but i think when we focus too much around the organizational aspects of it and not around the outcomes and that you might lose the perspective. You get too caught up in the organizational dialogue and you sort of forget. You started conversation in the first place, which is why the things like highrisk area are very helpful because they highlight areas, not necessarily organizations but what outcome are you trying to achieve. And then obtain the Strategic Alignment associated with that. And i know well have a lot more opportunity for me to, ill say, expand upon the approach we take within the Defense Department, certainly on the support side, we do take an enterprise perexecutive that we look both horizontally and vertically. We execute in a very horizontal way. We are end to end. Finance touches logistics. Finance touches hr. We can not just look at stovepipes to function. We have to look how we do what we do, what outcome were trying to achieve and what means and mechanisms we use to get there. Okay. Appreciate beths comments. Pick up on a sort of related point. It is important, clearly to start with the focus on what are outcomes you want to generate. Also i think it is really important to have a good perspective how you want to look at the enterprise. I would say that often times we fall into the trap and i do as well, that we, when we talk about enterprise we only talk about sort of a headquarters view. A very washingtoncentric view of organizations. At dhs, i often tell people, how do you look at us at dhs . Do you look what we do at headquarters and extrapolate from that and make a determination how well were integrated . Or do you look at us from sort of a field, point of contact with the delivery of our services and look at that and extrapolate from that . I would say if you look at us from the outside in, you see a much better enat that greated organization than were given credit for. The men and women of the coast guard, of customs and border protection, i. C. E. , fema, et cetera, work extremely well, not only with reach other but with their federal partners in their local environments. Where we dont work well together is here in washington, at headquarters. You have to define the problem. Where is the problem that is inhibiting us to act in an Enterprise Way . When i travel out to the field, i told this story before, i go out in the field, most people dont understand what an undersecretary is, and thats okay but when they sort of figure it out, they go budget and that sort of stuff. The question i often get, why is it so difficult for us to do things here in the field . Why is it that the coast guard and i. C. E. And fema, et cetera, if we want to share resources, or if we want to find innovative ways, if i spend money on coast guard but i can share that with i. C. E. And fema and vice versa, they always say, who gets in our way is you guys at headquarters. Can you fix that . So, when i think about sort of fixing the enterprise, first weve got to identify, what is the enterprise were talking about . If it is just here in washington, just those of us who sit here in the nations capitol, then weve got a number about challenges. We have a very fragmented Management Structure throughout all of the cabinet agencies. None of us lookalike. And i think thats a, thats a tremendous challenge in trying to find a harmonious way to do business as sort of the federal or the at the enterprise level. Can it be done . Absolutely. I think were doing things at Homeland Security quite frankly dont often get a lost attention but are beginning to knit the organization together but very, very important to sort of set sort of timelines and expectations clear. You know, you can not do this overnight. You probably cant do it. In a year or two. It takes time. And one of the things weve got to have is sort after temporal sense. How long is it going to take to do these things . What are the right things to be looking at sort of year in, year out, that demonstrate progress . Theres a tendency here very much to look at, for example, the fine work of this report and say, well, if you cant do it within six months it is not worth doing. You really have to have a long view. It takes time, it takes efforts. Thats where were finding in many of the federal agencies. We actually get along and cooperate much better thanker what given credit for. Can i jump in on that one . First fair warning to thad serving both as comoderator as far as im concerned participant too. You may get a couple questions thrown your way. Rafael, i think thats a great jumping off point. You talk about some things youre working on. Are there one or two things you think you find as bright spots inside dhs that might have broader applicability in the u. S. Government. Two things come in mind. My name is rafael, you gave me a handheld mic. I cant talk with one hand. This is really hard. This is really hard. There we go. Put it here. Can you hear me. Really hard to talk with, having rafael talk with just one hand. Two things i would point to. This is the first time ive seen gene laugh. This is great [laughter] im italian. Im having the same problem. Two things i would point to, max, very quickly. For us, one of the key, and clearly i borrowed a lot of this from my experience in the private sector, was to create an enterprise risk view of the way we conduct business at dhs. We created an organization to help us do that, but it really was about streeting environment in all of dhs, to be focused on risk. We need to look at our acquisition programs as investmented. Very, very important distinction because these are the investments, that the taxpayer make in us to be able to deliver in our case Homeland Security benefits. And we should treat them, we should act as stewards of those investments. But creating this enterprise risk view, to be able to think about what are factors that contribute to a very elevated risk scenario, and what can you do to mitigate and manage that, and also, how do you drive the probability of success up. That is is part of the nomenclature. We talk invests. We view on programs based on a risk matrix. We evaluate risk ratios and tools were building out. But this is quiet but what served to do this create ad common language within the department, where we all talk about acquisition programs in the same way. We use similar tools, departmentwide. Are they perfect . Of course not. It will take time, to build these out but are they useful . Absolutely. Thank you. Maybe a more specific example of that because i think this is really intriguing line were on to here. We talked in our deliberations leading up this report about carrots and sticks and how you manage autonomous components. I was reminded during the conversation of the recent Intelligence Community Information Technology Efficiency Program or isip what it is called that seeks to collapse a common domains and interfaces for peoples work tops but that was accompanied with pretty severe budget reductions to make sure it was carried out and saved and personnel costs could be [inaudible] im interested in your collective opinions how you manage that dynamic your department. I think having the right balance of both carrots and sticks is important but i also think that just, sort of transparency is key. So often people think theyre being penalized. I think we need to sort of break that cultural stigma. It really is about, how do we optimize the investment of the organizations to accomplish the mission were asked to accomplish. And a great way of really putting everything on the table is actually putting everything on the table in a transparent way. So that you have a Leadership Forum that says, you know, what do we as an Organization Need to accomplish how were going to get there . What investments are we going to make . It will mean we need to shed some of the stuff we already have. The nomenclature we use in defense, at least on the business side is to, is to establish a more simplified Business Environment. I want to invest in the future but in order to do that, i need to sort of shed some of the status quote and tell people, it wont be, they wont be left without capability. It is that were replacing sort of this old antiquated with the new. In establishing, you know, call them sunset dates. Taking the budget for those legacy systems to push the organization, to a more modern state. But, theres a trust factor that must be, ill say established or overcome because, we are so accustomed culturally, you know, to holding on and information is power and my information is mine and it is not yours. I mean we have to get over that, both within each of the respective organizations and also at the federal level, and we, load everything in a common tool and a allow everyone to see it. So army sees navy, navy sees air force. This is about us. Not us versus them. It is about the collective enterprise stepping forward. We cant afford to each have our own, pick something, you know, it might be, ill say the right thing to do so establish an enterprise solution for a particular business area, or maybe data standards are the way to achieve the outcome. Really depends on the, where do you want to go, how fast you want to get there and what is the Business Case that drives you. I think it all starts with transparency and trust. In addition to that i would say a very key component to this is discipline. One of the things we lack is organizational discipline. Trust, transparency, absolute key requisites. In order to be successful you need to establish the discipline to be able to execute in a way that is repeatable and sustainable and certainly thats an area, where, for example, gao is very helpful to all federal agencies because they point out just not obvious missteps, et cetera but they also provide recommendations that say, here is a course of action. Here are some steps that you can take. But, what is really needed discipline to execute against that. That takes time. So, the carrot and stick is a very interesting question. What do you do to influence behavior, to control or target or focus behavior and incentives are important because, in our case, meaning in the federal government, were living in a very constrained fiscal time right now. Let me just say one thing, about, the cliche we often use we need be a i believe to do more with less. I dont buy that at all. I dont buy it at all. I always say we have to do the right thing with less. This notion that well do everything that we do today, well find a way to do it with less, pardon me, says that everything is equally important. And were just going to find ways to do everything we currently do in our portfolio and do it, cheaper. Absolutely wrong way to think about it in my mind. We have to be able to again make those choices which requires discipline to say what are the high value add, where is the low risk associated with the investment and where do you have sort of very low value, very highrisk, dump it, okay . Can i get more plain than that . Dump it. Stop doing it. It is not just in our case just within dhs. This is where i think an enterprise view is very, very helpful. There are things we do across the enterprise in the federal government weve got to look and say, you know, it is over. It is time to do something else. Have to use one of my favorite words, transparency. I used to have a motto when i was working transparency of information breeds selfcorrecting behavior. I think that is kind of where you were going. I like to talk about transparency in two years. One for you, gene and if i could. You recently convened a meeting talking about fiscal liabilities not included on our budget or our Balance Sheet that are pending that dont have a lot of transparency associated with it. I hope you can summarize for everybody that is aggravating circumstance in the fiscal environment. For the two managers i would like to talk about transparency of data and how that is an enabler and doing functional integration and cloud architecture and data consolidation and so forth. But, gene. In terms of transparency on fiscal exposures to the federal government, something weve been working on for a long time now, and weve worked to include more information in the consolidated Financial Statements of the u. S. Government to show those fiscal exposures long term. Most of them are not highlighted long term in the budget. Only limited time when you look out. Weve been looking at long term and have concluded even with the recent changes in the budget control act, the american taxpayer relief act, which helped in the short term, the federal government is still on a longterm, fiscally unsustainable path. And those Financial Statements have shown the longterm, obligations of, for medicare and Social Security, social insurance programs. But there is still a lot more that needs to be done that, the to flesh out the exposures to the federal government both on a the budgeting side as well as on the Financial Reporting side. On the budgeting side i will give one classic example is that we only budget for emergencies and disasters that will be 500 million or less much. Most of us know that the number of disasters and the amount of money hasnt been there. So which means that it doesnt get budgeted for and comes in supplemental appropriations. 80 of it over the past few years. That just adds to the deficit. There is not enough transparency making decisions up front and budgetary process and longterm consequences of some of those decisions. And then Financial Reporting has gotten a lot better. Im very pleased about that but there is still continued evolution need sod that policymakers understand both the long term and short term consequences. Were dealing with fiscal liabilities of shortfalls. National Flood Insurance program from hurricane katrina. Gene is following that closely. So transparency and data. I love them both, especially when theyre together. And the, i mentioned both on through the major defense acquisition programs or major ill say weapons system, over time weve gotten more transparency not only on cost schedule and performance of those programs but also on vendor performance. That is also a very interesting discussion because i think that if we all, again, government and contractors have the data on the table and clarity again of outcomes, performance objectives, those kinds of things we actually collectively are very much stronger, working together to achieve the delivery of those capabilities. On the business side, we know, we, it is the i. T. And business side is 7 billion annually, which is small compared to the overall Defense Budget but still is a very big number but in order to achieve both transparency of investments and, you know, to go after the stovepipe nature and parochialism associated with the Business Environment because those tend to be sort of not necessarily the, at the forefront of everyones mind yet those are things that eat our lunch at the end of the day. If payments are not right for personnel or vendors arent paid or were paying interest penalties or you name it, the back office is not the most exciting place to be but we spend a bunch of money there and so, i get to see it every day. And so, you know what weve done is create an integrated Business Environment were looking at all of it together. So it is our strategy from a business perspective. How does it align to you, the National Security mission that the Defense Department has and how do we make sure we have the right number of, pick something, financial system, learning management, hr systems. Because you can really achieve process optimization in fishcy and effectiveness so when our military members are deployed overseas, their paychecks are right and they are right every time but it doesnt, i mean theres a thoughtful process that has to happen. So what we do is ensure we have the data transparent to everybody. It is not that, again i just mentioned, the army and air force, everybody can see everybodys stuff. It is not because im looking to sort of play the ahha game or gotcha, but it is how we as an enterprise move forward in a way that makes sense and optimizes the taxpayers investment. That is what this is all about. Its a cultural challenge, cultural challenge, to expose all of the data. And i say, hey, its not about, im going to highlight where you do bad. Im going to say, hey, is there a there there that we as an organization ought to take action . If the answer is yes, lets figure out collectively what that is. It is establishing and maintaining coalitions across the enterprise, aimed at a particular outcome. I think ive said it, 10 times here. I think clarity in outcomes, clarity of purpose, the, i think max mentioned the baseball, he used the nationals as an example. I like basketball, a lot better. There are fewer players you have to keep track of. But, and but its an active game but everybody has the role on the court. Everybody understand what the contribution is supposed to be. That is what a team sport is all about. That is what were talking about, what the outcome and role of each individual organizational component, agency, whatever it is. You have the disciplined approach to accountability, you know. If youre supposed to, you know, achieve, x, are you doing it . If yes, great, if not, why not . What needs to happen. It is all about how do you enable Forward Momentum and progress in a very transparent, accountable way . Yes. Yes. I love working with rafael. [laughing] it is really hard work to be able to get to this state because we all have organizations that have data, that has questionable integrity and we know that. So the question is, sort of that chicken and egg thing is, when do you have sufficient insight and clarity on the data before you can start using it . And, often times what we do, we say, well its not clean so lets not use it. Our view, what we did, which was a little, maybe aggressive and progressive, we recognized the data was a little dirty but we started accumulating it and Building Systems to be able to capture the data. The feeling if you expose the data, that would be greatest incentive for people to clean up the data. The is. Put it in the sunlight and let they see. When they complain that doesnt accurately reflect the performance of my program, why is that . Well the data is wrong. The data, if you start to clean up the data youre going to do it. We force them by putting it in, using transparency, openness that sharing of data and it created tremendous incentive over time. So i would say three years ago, maybe the fidelity of the data was roughly 30 . Thats not good. Today were probably closer to about 80 or so. Because of effort that has been undertaken to clean updateta. Not perfect of the not 100 but useful enough to be able to start now making decisions. As a tool, to help us make decisions. Now, let me just comment very quickly on these tools for decisions. One of the things weve got to control is our impulses around are these stats, stat meetings. This stat, that stat. Pretty soon well have a stat stat meeting to judge the relevancy of stats. So this is terrific, and i want to turn it over to questions from the audience, but one quick one for you, thad, not so quick, maybe. Want to come back to a statement lara made which is we see government operating in a great enterprise fashion when we have crises. And you might look at Hurricane Sandy or the, you know, the work that you did with katrina, and it comes back perhaps to some of the things, you certainly have claire clarity of objective, but what are the other elements that make government work well as an integrated whole, as an enterprise in a crisis environment which we need to see translated into regular course of business. Well, i believe that the right way to run government is the right way to run government. I think the only difference has to do with time compression, scale, Media Coverage, all the things that create pressure that can galvanize a response or make a wholeofgovernment response mandatory so theres no, government has no recourse but to get their act together, if you will. We shouldnt have to do it with a gun to our head. That could be a immediate. Gun or media gun or whatever. I found that the tenets of unity of effort, wholeofgovernment response, transparency contribute not only towards an effective crisis response, but are excellent principles for daytoday operations. The two best examples i can give you from the oil spill is the decision to flow that video live from the well. That was painful to watch, but it was necessary for the American Public to understand the gravity of the situation and that we were dealing with an uncontrolled well 5,000 feet below the surface with no human access. It was closer to apollo 13 than hurricane katrina. Its also necessary that we make everything transparent as possible, so we took, actually, a Common Operating Picture with a Global Information system on where the projections for the oil were at and actually gave [inaudible] fuel platform. Gov. I think those work in a crisis, but they cant work on a daytoday environment. But youve got to create the infrastructure that makes that happen rather than mobilizing troops to go to metaphorical war to do that, and that looks at interoperable systems where the data can be shared, it means taking a look at not only stovepipe systems, but systems where you have proprietary software that handcuffs your data. And this gets back to scale and shared services, having a common set of standards so when you go out and acquire that data, you can make it liquid and get a return on investment from that data when you need. And if i can just pile on for a second to what thad said, in a crisis mode we can galvanize and overcome policy barriers so quickly. And i, i often wonder why does it take so long for us to breakthrough the policy barriers that exist sort of day to today when i know we can do it, weve demonstrated we can work through, breakthrough the policy barriers that exist. We have highly regulated government. It is a government of checks and balances which is intended to be a good thing. But at the end of the day, it does slow us down in order to, in our ability to execute. And i do think, again, clarity of purpose and with a time box, you know, i want to get to this by this time frame really helps then identify those barriers. And there are so many policy barriers that exist across government. And im not saying its sort of malice aforethought, its just people locally decide either on the standards theyre going to use, the policies youre going to drive which makes sort of the wholeofgovernment, transparency initiative, if you will, that much more challenging. If i just look in defense, you know, we have so many things in the Defense Department, and its not because someone said, oh, lets figure out how to make this organization as complex as we possibly can and localize every solitary decision, its just how things happened over time. And it really is about looking at your total environment, understanding what you have and then challenging the status quo constantly, tenaciously, transparently. About, you know, how do we move forward if our quest for in our quest for, again, the outcome were trying to achieve. So i think the, you know, how we can mobilize and move in times of crisis really should be the benchmark that we then measure ourselves and our day to day. Because i think the art of the possible exists. Weve proven we can do it. Its just applying that to other areas. Its a powerful point, beth, and youre doing it within agencies as well. I think in addition to clarity objective that you see in a crisis, i think the very Senior Leadership focus is another critical element driving the organization. But, again, we start in our report today with the notion that you need that plan which is, in essence, clarity of purpose that is backed by the very top leadership. And then thats where you begin, and youve got create all the infrastructures. And the points you made about transparency, etc. , are really, really powerful. I want to make sure that we hear from anyone here who has a question. Hard for me to believe that weve got one right here. Here we go. Sir. I think youve got a microphone coming to you, and it might help since weve got some Media Coverage as well. Thanks. We talk about crisis management, i think thats a great point getting back to the report that we just heard about earlier. So when were looking at setting up an enterprisewide approach to government, so whats the crisis that will get us to that point . We heard how things work well at katrina, and so is it the budget situation . Is it competing against china . Is it Climate Change . So im just wondering, whats going to be the Tipping Point for us to take on what you outlined in the report . So thats a good slow pitch over the plate here. [laughter] try to figure out who most wants to no, i play basketball. Okay. [laughter] so thats a pass the rib here. No, i think frankly, ill start. The fiscal environment, you know, to say it cant be ignored doesnt even come close to, i mean, were all with certainly feeling the impacts of the furloughs within the Defense Department, the, you know, the operations and maintenance budget, the things that we just cannot afford to do any longer i think really has put focus on really assessing not only sort of how we do what we do, but the things we are doing to the point rafael made earlier. Its just, you know, we cant afford to do everything weve been doing. We really have to assess, you know, all the things were asked to do and what can we afford to do in the budget environment. And if things sort of play out the way theyre currently looking, you know, it tightens the, our ability even more. And so i think it is important to say with the top line projections the way they are and the missions that we respectively have across the government, you know, for National Security what can we do within those top lines effectively. And then, you know, what can we no longer afford to do. So i think the fiscal environment really has been not that it will be, it has been and is a, ill call it a terrific opportunity to be the galvanizing effect to really bring the whole of government but certainly at the agency level together. I think its the common realization that why should it take one of those events to prompt this action. Because ill tell you, i tell everybody its sum of all market failures. [laughter] you have a bureaucratic failure, two things happen. You lose discretion, and terms get dictated to you by the congress. This is organizational wellness. We ought to be about it, because you can do it on your own terms, or somebody can dictate it to you. I think there are a lot of factors, but the fiscal picture, i think, is the overriding backdrop that will create the pressure necessary to do this. You know, if you realize right now debt held by the public is over 70 , 73 n. The last 40 years, its only been about 39 . So were highly leveraged right now. Going into a period of time when were having a demographic wave going to hit the medicare and Social Security systems. Between mow and 2029, every day on average 10,000 people will turn 65 in the United States. The percentage of people 65 or older will almost double during this period of time. And that will create enormous pressures beyond the more immediate fiscal pressures down the road. So that will be with us over the next several decades. And i believe that constant fiscal pressure will create the imperative for changes that would not have otherwise occurred. The other factor is that the government performance modernization act of 2010 requires now performance information to be made available to the public quarterly on a web site. Theres a lot more information being made available. So this transparency that were all talking about today is becoming more evident. There are pushes in the congress to require more transparency on federal spending, to take off on the examples that were in place on the recovery act, transparency that occurred there, recovery. Gov. And so i think the push for transparency will continue. The fiscal pressures are going to be tremendous, and i think those two factors will be the overriding imperatives. Heres a point id like to make then, ill use a medical analogy, you know . Lets suppose you go to the doctor, youre diagnosed with high cholesterol, all right . So what is going to be the approach to get well . Are you going to take a staten and thats going to be your solution, or youre going to get well . Youre going to change your diet, exercise, etc. My concern with sometimes focusing on very limited that, oh, well look for the magic pill. And if were going to be successful, weve got to get well. And that means, you know, changing the way we behave, change our diet, changing our attitude. Weve got to change the climate, quite frankly. We have got to move away from the current climate which continues to demoralize Public Service not just in this community, but around the country where its okay to bash Civil Servants and lump them all together. Its incredibly demoralizing. At the same time, were asking our Public Institutions to do more, to be responsive to the needs, were trashing them at every moment we get. Now, that just has to stop. People have to step up and say just enough. Stop it. I cant resist adding my own youve offered a lot of compelling reasons, but i think part of the answer is its not actually happening, its not happening fast enough, and thats the reason why weve done this work and this report. There are a lot of good reasons, a lot of good things that are happening, but it needs to accelerate dramatically because we do face all kinds of issues from the fiscal pressures as well as the demands that we see in our own position globally. I mean, theres a lot of competition we face at a level that weve never had to address before, and that requires our public infrastructure, our government to top its game, and thats why the enterprise piece so important. Got to be some other questions from folks. What else is on your mind . Weve got an incredible panel here. Any other thoughts you have . Up front here and then well go back. And, please, if you wouldnt mind let us know who you are and where you work from, that would be terrific. Thanks. Bill [inaudible] im at the federal motor carrier safety administration, department of transportation. And in the report you had mentioned the idea of sharing funding across agencies for crosscutting purposes which sounds very good. But we have the certain accountability, of course, to the congress which appropriates dollars to the department and to the subagencies for very specific purposes. And so we have this, you know, reporting back. Does the report or address the need to Bring Congress into this so that if we are sharing funds, lets say from our agency with federal highway administration, national Highway Traffic Safety Administration for some shared, you know, issues that, you know, we dont get caught up underneath the wheels of, you know, some ada matters. Right. And let me just jump in on that one only because its specific to the report rather than general issues, so were actually not advocating for a sharing of funds across agencies. What were suggesting is that you can actually with the leadership of a goal leader, an individual whos looking across the set of portfolios that continue to exist within their current architecture, that you can have a better coordinated, collaborative approach to trying to achieve those clear objectives. So its not that we see funds being moved from one accounting to another which, obviously, you cant do. By and large, almost every recommendation we make within this report is actually within the control of the executive branch as opposed to the larger Civil Service package we have later which is more legislative focused. This is really how do we do within the executive branch what we need to do across the organization to maximize that collaboration. Now, we hope that well deliver also information about whats working, whats not better in a way that can influence congress to make funding decisions that will actually direct resources to where theyre going to be most effective. But at the end of the day, those are, obviously, congress choices. So we are careful about ada issues and more fundamentally, what are things that literally can be done now . As ron said earlier, this is all based on things that are happening. Were talking about building it across the whole enterprise. So, gene, please. I would say that the and i recognize the reports parameters theyre putting around and for the executive branch, but in my opinion the concepts embodied in the report cannot be effectively implemented without better consultation and communication with the congress. We just released most recently our study of the initial implementation of the government performance results act modernization for 2010. And our conclusion, there was little Meaningful Evidence of effective consultation with agencies strategic plans with the congress. There were explicit requirements added to the 2010 legislation to require more consultation, that consultation be reflected in the plans. The 1993 original act contemplated consultations with the congress, but they it wasnt happening on a consistent basis. So the requirements were heightened. And i think that its just very important, talked about outcomes, rafael, thad, action and i, but you have to have common outcomes that include the congress in terms of making sure these are common objectives that were all trying to achieve as a government. And thats the only way that youre going to get them funded properly over a period of time and have a effective oversight and meaningful achievements of everybody pulling together for common objectives and national priorities. Thad, you wanted to let me know before i speak that one of the recommendations of the 9 11 commission that has not been acted on yet is the organization of congressional oversight, how you deal with these complex situations. I think that remains throughout as a question to be dealt with. That said, i think there are certain issues related to the economy act that guide how agencies work with each other and how moneys exchanged where you might be able to tweak that. But through, and its still called defense business operating funds, or do they have a new name for that . Capital working funds, industrial funds, there are mechanisms whereby the funds could be allocated to achieve a greater scale, and as max said, theres no inhibition from doing that right now. In fact, i was going to ask rafael, theres currently an initiative inside the department of Homeland Security to actually move to shared services. That doesnt unpack the source of funds, its how you acquire it. Yeah. Thats a great question. As you know several years ago, the plan for d. Of Homeland Security was to build a large, completely integrated Financial Management system sort of end to end covering procurement, all of the functions. And that sort of the best metaphor for that, it just collapsed under its own weight. Could not be financed, implements or organized in a way that made sense. So what is the new strategy, and, you know, ive been here now three and a half years, so almost three and a half years ago i remember going to omb and saying, look, i dont want to build an endtoend system. There are good federal systems, there are good Financial Systems in the federal government, i just need to be able to call a may and say i want to go over here. Help me do that. If you help me do that, i can refashion this strategy to implement a Financial Management system in the department using existing systems that are certified and good systems and then repair those that need to be repaired. Here we are three and a half years later, and the strategy hasnt changed. Im glad now that everybodys talking about shared services, but i still havent got i still dont have a quick way, to use a sport metaphor which i dont pay much attention to anymore these days, to call a play and just go. Theres, theres any number of road blocks and requirements and restrictions to just saying can i just go over there and buy my Financial Management services. And knit that together with this analytical tool that were build being out anyway, and thatll tie all these systems together. So, thad, were still waiting. [laughter] and i might adjust federal Motor Carriers, you can just cooperate. I know for a fact that the ports of entry between the United States and mexico, regulations by the federal Motor Carriers act are carried out by department of Homeland Security folks that do dual inspections at the same time. Last question. Jason miller, federal news radio. Im glad the issue of congress came up, because i wanted to pull the string on what Rafael Borras was saying about not doing more because its a silly cliche, and i happen to agree with that. But how so let me throw it open to gene but then move to everyone else on the panel. Congress is the problem, and i can say that because i dont have to answer to them like you all do. [laughter] but how do you get congress to act . Like, for instance, gao has reports of overlapping federal programs, senator coburn puts out his tweets saying we could get rid of sequestration if we did this, but nobody seems to be listening. Start with jeep, start with gene and then move to ms. Mcgrath and mr. Boras and mr. Allen, how do you guys deal with the overlap . I know, ms. Mcgrath, youve been dealing with overlap in i. T. Systems and thats been a bear to get consolidated a little bit. So i know its kind of a complicated question. First of all, i would say clearly people are listening to the reports. Weve included every year in our overlap and duplication report a scorecard of how well both the executive branch and the congress have acted on recommendations weve made to both branches. In this past year we reported Something Like a notable example for congress is they allowed one of the ethanol tax credits to expire that we said duplicated the renewable fuel standard. That tax credit was, had about, over 5 billion in revenue losses. So theyve acted. The moving ahead for progress act, map 21 act, consolidate canned over 100 transportation programs and set more performance goals for the federal and state and local levels. So our report demonstrates theres actions that have been taken both by the congress and the executive branch. But theres a lot more that needs to be done, clearly. Bills have been introduced to consolidate the Employment Training programs both in the house and the senate senate, and weve had a lot more inquiries and involvement with issues going forward. So i think clearly people are listening. I think the fiscal pressures are requiring, you know, people to pay more attention to these issues. And with the budget control act caps coming into place, ive noticed a much more interest on the part of a wider range of committees in the congress than weve seen in the first couple areas. So i, im encouraged by that. But i think theres a long way to go in order to deal effectively with these issues. And a good place to start in cases, and ive said this when im testifying before committees, theres a lot of commonnalty between the 14 crosscutting priorities that the administration put forward under the gpra modernization act and our overlap and duplication report. For example, the scientific, technical engineering and math, the training programs, data center and consolidation strategic sourcing, and those areas are where both, you know, the gao reports and the administration has said that changes need to be made. And, you know, im encouraged more hearings, more joint hearings on Congressional Committees to deal with many of these issues. And im not sure i would encourage hearings. [laughter] but i would agree that i think there is a lot of interest, and i think from everybody to be honest with you. Both certainly with the executive branch, with the legislative branch and, frankly, within our own organization. I can speak specifically to defense. I mean, weve been, say, looking at efficiency initiatives and various things over the last few years, but to do a sort of salamisliced cut, to me, isnt the most effective way to really strategically go at effective reductions. And so what were, what we have been doing is really seeing from a strategic perspective, well, what do we have and then what is the best way to reduce spending, increase or optimize a particular area. So its much more strategic in nature. I think it all starts with knowing what you have. Theres a lot of unknown unknowns. So when gao does reports, we bring with everything together in a very transparent way. It really educates the population into sort of what do we have, where do opportunities exist to reduce duplication or redundancy across the enterprise be it the federal government or within a component. We have found that, again, in the Business Space the transparency jason, thank you for mentioning the i. T. Systems systems but some of it was just understanding what we have and data standards. At the end of the day, if youre not using standard data across your organization, you can only get so far. And so these practices that have been in existence for a long time take some time to then move from sort of very flexible data to more standard data. And it requires investment in strategy. And so, you know, we really have been using the tools like architecture to say, hey, why do we need ill pick one ten learning Management Systems in the department of defense . Surely, we could use fewer. And the answers probably, yes. Then its getting at, well, how do we all define those things . I can tell you, we have ten, and all ten are different, and its really at getting the strategy behind a rationalized, simplified Business Environment, doing it in a much more strategic way. But it really is starting with an understanding of what do you have, put your arms around it. Theres a ton of interest, pick a place either at the congress, within the executive branch or at the agency level. I think we really are trying to find out how do we optimize in a way that just doesnt break things. I think were all to the point that weve done cuts sort of acrosstheboard cuts. To do more acrosstheboard cuts you then break things. So you have to be much more strategic, much more thoughtful around what do you do or not do or how you do things differently going forward. Whether you know, a lot of these gao reports are very complex and very difficult to understand, and if theyre taken too quickly or too easily, what can happen and oftentimes either members of congress or other overseers will draw conclusions that are very limited. And then set, create a set of expectations that are off times inconsistent with often times inconsistent with even the conclusions reached by gao. So what ive tried to do, what ive done is when many times gene, i cant remember how many times weve done it, probably a half a dozen or more times we have gone up after a report like the high risk report with gao where ive invited gao, we go together and brief the Congressional Committee staff so they can hear from the both of us at the same time. So its not, you know, certainly not an argument, its not its just a clearing of expectations, an understanding so that the staff gets a really good sense of where we agree. And often times we agree with most of the recommendations, all the all the relations, and where we either have a different point of view or would like clarity from gao, the staff has an opportunity to hear that realtime. I think thats a wonderful example. I dont know how many other agencies and departments do that. But i think, quite frankly, im very proud of that. And im very, very pleased and proud that xao sits that gao sit there is with us. Because often times thats breaking expectations that we cant sit together or talk together, we have to be viewed as adversaries. And we walk in really arm in arm because were both dedicated to exactly the same thing, Good Government. Its very simple. You know, thad talked about oversight. Beth and i were on a panel a couple of months ago with chairman and ceo of general motors, and he was talking about all the things that he did to be able to turn gm around, and one of the things that hed mentioned was that i believe it was some 28, 29 committees and subcommittees of board, board of directors. And when he became chairman and ceo, he just wiped them out. And i said, wow, weve got at Homeland Security about 108 committees and subcommittees, and all i can do is shut my eyes. [laughter] jason, im going to resist the urge to answer you by the negative synergy between the lack of Campaign Finance reform and redistricting. [laughter] lets talk about transparency for a minute. A lot of people dont realize this, im a recovering budget officer, by the way. There is an asymmetry right now between the amount of people and data and congressional justifications that are generated either for authorization bills or budget and the amount of staff that can absorb that on the hill. Ive had very personal conversations with appropriations clerks that say we have a certain amount of time to absorb this significant amount of material and then position ourselves either for an authorization bill or an approps bill. Ill give you the example of Homeland Security because im particular with it, we have never rationalized the structure between the components that were moved over in this compartments in 2003. So a general lack of comparability between operating capital and personnel costs across components that would lead you to be able to do the things rafael wants to do, and i know hes working on that. If you go to the hill, they say they know that needs to be done too, but it has to be done by the components where it becomes in their selfinterest to create Greater Transparency to get more coherent response from congress. So, look, this has been a fabulous conversation. I very much appreciate all of you, gene, beth, rafael, thad, thank you. If we can get a great round of applause. [applause] sort of last word from me would be take that report and create more push to see more interplease approach in government enterprise approach in government. So thank you for your time. Tonight on cspan2 at 6 30 p. M. , the National Press clubs press Freedom Committee holds a discussion on whether government Public Affairs offices are really a help for open government. The Panel Includes journalists and Media Communications firms. Booktv in prime time continues this week. Tonight after the communicators well bring you authors from book fairs and festivals. At 8 30 p. M. Eastern we begin with Oscar Goodman. He talks about his autobiography, being oscar. After that well go to this years Chicago Tribune printers row Literary Festival to hear on the memoir the cooked seed. Then on to Bookexpo America in new york city with erica jong who talks about female sexuality and feminism in fear of flying. And we finish with author and radio talk show host larry elder at the Los Angeles Times festival of books as he discusses his memoir about his troubled relationship with his father in dear father, dear son. Booktv in prime time all this week on cspan2. Of all the handsome young officers that were surrounding my grandmother, who was 23 years old at the time but very beautiful. My grandfather, hed been trying to get to her and talk to her, but he couldnt because of all the handsome young naval officers around. They all rushed upstairs to do whatever they were trained to do and left her standing there. Well, she knew her father was up there, so she fell in behind them. My grandfather fell in behind her going up to the stairs to the deck. They came back saying dont let know ms. Gardener find out her father is dead. When she heard that, my grandmother paymented right back into the fainted right back into the arms of the president. He caught her tenderly and gently. This week, our original series first ladies influence and image looking at the public and private lives of our nations first ladies. Anna harrison to eliza johnson, weeknights all this month at 9 eastern on cspan. And during tonights program, join in the conversation with Colonial Williamsburg historian taylor steormer at facebook. Com cspan. Now from the george w. Bush institute, two panels from a july forum on immigrants contributions to america with first discussion on immigration and state economies. Stephen moore from the wall street journal, a labor economist from the Federal Reserve bank of dallas, and u. S. Hispanic chamber of commerce president javier poll mar rez in the hourlong event. Wonderful. Thank you, jim, for the introduction. Thank you, ambassador, thank you, immigrants who are joining us today, and thank you to our audience both here and also watching us online. This is being live streamed on bushcenter. Org, and we also want to certainly acknowledge those people who are joining us, so thank you. As the ambassador mentioned, were here in texas. This is an especially relevant topic to texas. Its relevant, were finding, to america nationwide but especially so here in the lone star state. And its an interesting comparison. So our project here is the 4 growth project. Were trying to get u. S. Gdp about double the rate that it is now. In recent times weve been growing at about 22. 5 a year. We think thats too slow, and we know we can do better. One way is because in the past weve grown a lot faster. Weve grown at least 4 about a third of the years over the past 60 years. We also know that 4 growth is possible because in states like its where we are today, they grow at 4 or even more. Texas grew, i believe, at 4. 8 in the last calendar year, thats the latest data. If you compare that to the u. S. Growth which i said, again, is between 22. 5 , so we know we can do better, and we know there are lessons out will in america that can show us how we can do better. Were here today to talk about immigration as well in addition to growth. And as the ambassador said, we know theres some sort of relationship between immigration and growth. And we really want to hone in on that. In texas its home to 4. 2 million immigrants, to give a little perspective. There are more immigrants in texas than there are people in oklahoma. [laughter] so i find thats a good thing to another thing that texas can brag about. Texas, so the 4. 2 Million People, that means that about 10 of all immigrants living in america are here nor texas. Here in texas, the third most of any state behind california and new york, almost, essentially tied with new york. And be so that means so that means that 16 of the texas population is an immigrant. That means about one in six thats quite a bit. About one in six people you see here in texas will be an immigrant. And in america its about one in eight. If you look here in Dallas County where were seated now, its about one in four. So really, i think, we couldnt be at a much better place in america to have this discussion right now. And im joined by a fabulous panel of experts both on texas and nationally, and theyre going to enlighten us and sort of unpack this relationship between growth and immigration here in texas. So ill start with steve moore. Many of you have probably seen him on tv, hes an Editorial Board member of the wall street journal. He writes about immigration, taxes, fiscal policy and many things. Im sure youve read his articles, youve seen him. Hes been an advocate for years and a scholar on immigration even before he was at the wall street journal and were just very privileged to have you here, steve, so thank you for coming. Thank you, matt. Something that you do well is you look state by state a lot. You do things we like here. You talk about growth and you look at the states and the evidence. So which states are growing, and what role is immigrants, you know, what are they playing in state economies around the country . Well, you know, first of all, when amity called me and asked me to come out here to dallas to speak at the bush institute, i just leapt at the opportunity because im just such an admirer of george w. Bush. And so thank you for the invitation to come. Jim, you kind of stole my thunder a little bit when you talked about 4 growth. I would add to what you said about i dont think we can accomplish 4 Growth Without immigration. You know, i think it is a precondition to getting to that higher growth rate. And by the way, the only problem i have is i think 4 growth may be too low. Were now in the fourth year of nonrecovery, right . In the economy. We, theres no reason the economy cant be growing much faster than it is. And even aspiring to 5 or 6 or 7 growth for several quarters which, by the way, we had in the early 1980s. Now, its interesting if you look at the period what i call the kind of quarter century of spectacular, unprecedented growth in america from 1980 to 2005. That was a period when we had, we averaged almost 4 growth, and yet over that same time period we had unprecedented immigration. We allowed into the country legally well over 20 million americans, new americans during that period. And people say that immigration is bad for the economy or depresses wages or causes high unemployment. I mean, the actual evidence shows the opposite, that the biggest boom period in American History was also the period of the greatest immigration. That doesnt mean immigrants caused the growth, but it certainly is circumstantial evidence. A second point is with respect to states. It is so interesting, we do a lot of work at the wall street journal, weve probably devoted at least ten editorials over the last few years comparing california and texas. [laughter] it is a good if youre in texas, a good comparison if youre a texan, if you believe in free markets. A lot of people moving from california to texas. Well, thats right. Theyre reading editorials. Sorry. So what youve seen over the last five years roughly, these are just rough numbers, about a million new jobs in the state of texas in the last five years. And roughly a million lost jobs in california. Thats amazing. In fact, one of the points that art laugher and i made, were writing a book on this, what were really seeing right now is one of the great wealth transfers in history geographically from states like california that dont get it right, my home state of illinois being another example and states that do get it right like texas. And this is one reason to be very bullish on the future of texas. Now, the interesting thing also is that texas and california are the two highest immigration states. And one of the interesting things is that texas does a much, much better job, in my opinion, of economically assimilating immigrants so that theyre successful here. California is much more of a welfare state. It indoctrinates immigrants into the welfare system at a much higher pace than texas does. People come to texas, in my opinion, for jobs. People go to california for welfare. And so youre seeing, i think, the differing economic outcomes as a result of this. Texas is the model that other states should be, should be emulating. A last point, if i may, just because this is on the top of my mind, if you i would urge all of you if you havent had a chance to read our editorial this morning about immigration which i was lucky to get here last night, because i wuss working on this i was working on this until late at night. One of the points we made is that the United States of america has such an Incredible Opportunity that is so much larger than any other nation has because most of the people in the world who are talented and skilled and educated and ambitious, their first choice where they want to go to if they want to leave their home country is to come to the United States. They dont want to go to israel, they dont want to go to germany, france, japan, they want to come to the United States. And we have such an Incredible Opportunity to, if i can use the word exploit that opportunity for the benefit of american citizens. And thats, i think, what this whole immigration debate is and should be about is how do we have an immigration policy which is good for the immigrants which is obvious but also good for american citizens . And im very worried that this immigration debate in washington is migrating in the wrong direction. We last point be ill make, i hear a hundred times a day in washington what are we going to do about americas immigration problem. Immigration problem . America doesnt have an immigration problem. We have an immigration opportunity and an immigration advantage over the rest of the world. And that is something that needs to be exploited. I always say when people say, you know, china is going to surpass the United States, ive said this a hundred times, chinas not going to surpass the United States economically because our chinese are smarter than their chinese. [laughter] this is an enormous advantage, and we ought to exploit i. So thank you for having this. To follow up on one theme, you talk about where there are a lot of immigrants a lot of times theres a lot of growth. A lot of people dont realize the growth and immigration to different states has gone away from states like california and new york, but to states in the south like louisiana, mississippi. You know, whats happening in some of those states in terms of is that helping or hurting . Thats a really important point. This is kind of one of the interesting demographic changes in america over the last 25 years. Richard vedder is the expert on this who youll hear from later. Traditionally, immigrants have shunned the south other than texas. In fact, thats been a problem for growth in the south for a hundred, since the end of the civil war. Now youre seeing dixie attracting the immigrant states like north carolina. One of the states that has had the biggest percentage increase in immigration over last 15 years has been georgia. And georgia actually has become a high growth state. And this gets to the point people ask are immigrants more attracted to a state that has high welfare went fits benefits or to a state that has jobs. And so we rooked at some of we looked at some of this evidence, and what we found was on balance immigrants are much more likely to go to states with low unemployment rates than they are to go to the states with high Welfare Benefits which is an important finding, i think, because it says people are coming here because they want a job, not because they want a welfare check. Which seems to make logical sense, too, right . If youre going to leave your home country worldwide, not that many people do that, if youre going to make out somewhere new it makes sense, but you wouldnt, you know, there are so many on the other side of this issue who think immigrants come here for welfare. Look, some do, some do. But the vast, vast majority dont. They want Economic Opportunity and a job. Thats a very important point. So next were going to focus in even more on texas and were all incredibly lucky to have pia orrenius, shes the author of a chapter in the bush institutes fist book, the 4 solution, looking at growth and immigration broadly and presents a lot of great evidence. Shes the author of a fabulous book called beside the golden door. But shes also at the Federal Reserve bank of dallas as a senior economist studying immigration. So, pia, i want to ask you wheres the growth in the texas economy coming from . Weve heard so much about it, we hear the numbers, the percentage increase, wheres the growth coming from . When i talk to the media, i try to sort of simplify it by saying rather than going through each sector thats responsible for growth in texas, i sort of say, well, there are three main components of growth to texas, and then theres what steve was talking about. But the three main innate components besides geology which is really oil and gas which is huge right now which well have a conference on in september, ill just plug that real quick. [laughter] and i talk about geography which is, so that i can talk about manufacturing [inaudible] pia maybe hold on just one second so we can actually hear your wisdom. One second. Sorry, everybody. We thought you were going to tell us whether ben bear man cu was going to ease. Im a little distressed, you guys have been studying up on your texas economic statistics. Youre kind of stealing my material. But thats all right. Ive got more stuff. Okay. So you were telling us about some of the sectors in a way that our audience can understand, we dont need, you know so international trade, manufacturing, international trade, the downstream Industries Like petro chem calls have been huge chem calls have been huge in texas. And the third factor really is demographics. So not only a high natural population growth rate, but also lots and lots of immigration to the state and not just international, but domestic like from california and so forth. In the recent years, in the 1990s, International Immigration really took off to texas and became extremely important. In recent years domestic migration has been even more important than International Migration to the state. It just shows the growth differential with the rest of the United States is broadening. In fact, if you look and ill admit the 4 growth project, i mean, it sounds like a lofty goal, but its amazing to look at texas in the economic recovery exact the grease recession Great Recession act and see were actually averaging 4 growth. The state. The state of texas, yes. So its an amazing growth time especially now that its been traditionally over time. I mean, since the 1970s, basically, when the texas economy took off and the ore point i want to make is theres also been a big transformation of the texas economy. In the 1970s and most of the 20th century we were the oil, the cotton and the cattle state, and it really wasnt until the 80s and especially if 90s that we transformed ourselves into a modern Industrial Service sectorbased economy. And this transition, you know, it came really, i think, thanks to two factors. One was 10 oil. If you remember in the 90s in the late 90s, oil about that, yeah. So that decimated our oil and gas industry at the time and forced us to change. And luckily for texans, texas is a state thats been able to change. But thats also been because of immigration. Immigration in particular of highskilled immigrants which tend to have a shortage of. So highskilled immigrants here in texas are in a bit of a shortage. Its is awe week from other states where a large percentage dont even have a High School Degree always. Are they good for the economy too . You know, a lot of peoples people will agree, sure, we should bring in every ph. D. , scientist that we can find to start new googles, right . Who would disagree with that . But what about those without Even High School degrees . What role do they play in the economy . Well, i mean, its just because its all good news, especially now. And even so we have, when we look at our immigrants, while 60 of our immigrants are from mexico and nationally its less than 30 of immigrants nationally are from mexico, and mexican immigrants tend to have low levels of immigration. And thats true in texas, and they also tend to be less likely to speak english fluently. So we see all that. But whats amazing about texas when you look more closely, they have much higher employment rates than low skilled immigrants nationally, and they have much lower unemployment rates than low skilled immigrants nationally, and their wages are stable, their wages are stable and especially compared to the rest of the nation, they do very well. Wages have been falling. Yes. Right. And so in texas on average wages have turned up in the last couple years, and i was sort of speculating the ore day about the the other day about the shale boom, are places ramping up in texas. So its just testament to really the Success Story of the economic miracle of texas and not just in the recovery, but even long term. We have lots and lots of low skilled and theyve contributed tremendously. Back to the high skilled for just a moment, we hear about so many businesses moving to texas, has that brought more highskilled immigrants in the last several years . Well, the bringing in of the highskilled immigrants goes back to the t 90s. Its been crucial, the immigration of high skilled. But whats so weve brought, basically again, texas, you know, as a commoditiesbased economy for a long time, we were light on lowskilled labor, and we didnt have a huge need for highskilled leader, but thats all changed now, and theyve been instrumental in the hightech sectors n telecom, research and development, in health care, in education. In education our teachers and professors and so forth that are high skilled and, obviously, international immigrants. Great. And now i want to give a little bit of context, and were lucky to have Javier Palomarez representing businesses across america, many of them here in texas. Weve heard facts and numbers and percentages and all sorts of things, but you represent actual companies, real people here on the ground, so im hoping you can tell us about some of the businesses you represent here in texas and what role immigrants are playing in helping them be success. Yes. Well, first of all, thanks for having me, matthew, and thank you to the ambassador and what the institute is doing. I think its a real service to the American Public. Thank you. Were very thankful to be part of this. The United States Hispanic Chamber of commerce represents some 3. 1 million hispanicowned firms in this country that together contribute about 465 billion to the American Economy every year and growing. The fastestgrowing segment of american Small Business is the hispanic business community. We also advocate on behalf of about 198 major american corporations, and we do our work through a network of over 200 local chambers of commerce and Business Associations throughout the United States. Were particularly proud of the fact that we advocate on behalf of those people who are the practitioners. We appear, write, talk and advocate on behalf of business owners, but its always kind of thrilling to meet the practice tiggers, the ones practitioners, the ones who are actually creating the jobs. And im very happy that we have some members of our association here. We have four of those 3. 1 million hispanicowned firms or members, and i cant see them here, but i know theyre in the crowd. First of all, patricia stout is with us today. Patricia began a Company Called alamo travel group. Patricia is her companys headquartered in san antonio, texas. She immigrated here from mexico. Last year her country did about 1 38 million in revenue and she employs a hundred texans. Luis company is here in dallas, and he owns a Company Called azteca enterprises, and if youve ever crossed the beautiful Trinity River bridge that just came up that everybodys talking about, or if youve visited jerry jones house, the the stadium, it may be jerry jones house, but we all wish we had built it. Luis company last year did about 122 million, and he employs over 250 texans. We have with us frank who, while not hispanic, is the grandson of czech and german immigrants who came to this state looking for opportunity. And today frank manages and farms over 3200 acres of dryland sorghum in south texas. And finally we have nina vaca with us. Nina is from dallas, but she immigrated from ecuador, and she runs a Company Called pinnacle Technical Resources. Pinnacle last year did about a quarter of a billion dollars, and she employs over 3700 people, about a thousand of them are texans. These are the practitioners, these are the American Dream incarnate. They are the ones driving the texas economy forward, they are the ones paying down the tax bill. And at the end of the day, what this is about is what they do every day. And so i cant see you, but if you would stand up and be acknowledged by the group, that would be wonderful. Thank you for being here. [applause] thats the American Dream right there. Every one of them could have choseen any state in the nation to start their business or continue their business, and the fact is they chose texas for all the right reasons. And be i think theyre living proof of what this state has to offer to the immigrant entrepreneur. So why did they choose texas . In your estimation . You know, we could ask all them, but for the sake of time, well ask you. What are some things about texas that makes it, you know, especially friendly for immigrants or other people who are coming here and want to start a business, they can grow to that kind of level and really drive the growth and we all benefit from it . Well,s in case of these four individuals and, again, im in no position to speak for them, but i can generally, i think, surmise in the case of these four individuals, the conversations ive had with them, you look in the sectors theyre in. Theyre in technology, theyre in services, travel, theyre in construction, theyre in agriculture. So youre looking for people who want to work both and lowskilled. Absolutely. And theyre at every, you know, both spectrums on the skill, both ends of the spectrum in terms of skills from very highlytechnical positions such as the jobs that pinnacle Technical Resources has to by the way, i wouldnt say lowskilled, i would just say differentlyskilled work that happens in the agriculture and the construction sectors. But in all of these cases, they recognize that this is a state where workers are ready, willing and able, because the state makes it possible for them to get engaged, for them to work and for them to build their own individual wealth as a family and an employee. But at the same time, help that enterprise continue to grow. One more follow up for you, javier. It seems like we hear this everywhere, and its it kind of irks me. Seems welcome like conventional wisdom, and i dont think it is. We hear we have to make these protections for american workers, this idea that and it just sort of facilitates this myth that immigrants come and take jobs. We always hear this, they take jobs. And even our leaders in washington on either side, they seem content to always just to kind of buy into that by saying, yeah, we need to build in protections for american workers. But, i mean, ignoring the protections. What do you respond to people who say, well, immigrants take jobs . You know, i think that we would do well to really kind of look at what has transpired in some other states, neighboring states. You look at what happened in alabama recently, that state passed what i considered to be a fairly draconian, antiimmigrant piece of legislation. And the fact of the matter is when its all boiled down, you look at the end of the, at the end of the case here, they had some 40,000 workers just get up and leave the state. What ensued is that the state lost about 10 billion of revenue and about a half a billion dollars of taxes that it could have garnered had those workers stayed in the state, worked the crops, worked in the plants, worked in the construction sites. And so i think theres a lesson learned. I think that sentiment was part of what happened in alabama. Im hopeful that that will never be the case in the state of texas and, frankly, i think that governor bush, then president bush really illustrated some real leadership in terms of his understanding of the immigrant communities in terms of the work that immigrants come here to do. I think he welcomed immigrants to the state of texas. I remember very fondly his relationship with president fox be, thenof mexico. And a very, i think, clear and clearminded understanding of the contributions that immigrants make to the state of texas. So there are lessons to be learned when you study whats happened in states that do believe that immigrants are there to take their jobs. Right. The fact of the matter is no one came back and filled those jobs that those immigrants left untended. Right. Thats a perfect segway. I want to come back to you, steve, and ask, you know, what are some lessons for other states . If f x has had this great both, a lot of it driven by demographics and immigrants, what areless szobs from other states lessons from the other states . We need some help. Well, you know, one of the things when you talk about where the growth is in this country, and texas has had so much growth and in migration as you were talking about, and whenever, you know, people who disagree with my free market philosophy, you know, they say, well, yeah, you know, people are going to Southern States because of, you know, the nicer climate, you know, the snowbirds from minnesota and michigan and illinois. Sure. And, you know, its interesting, i guarantee you, as wonderful as dallas is, i guarantee you people are not moving from san diego to dallas [laughter] when its 100 degrees. Especially in july. Its 74 degrees in san diego. Texas has, and i just think this is fascinating, and you probably know more about this than me, why is it that texas does such a better job assimilating immigrants into the society in a much better way than california does . And i think its something we need to really study more. And i think its partly because texas, this is the supposition, but texas has that kind of Free Enterprise mentality that some of these states like california dont. And its really an amazing phenomenon, theyve got taken over those occupations. Past events and job placement . Probably. Used to be whites and blacks that have those jobs. Now theyre going to eastern europeans. When you l