    [House Hearing, 111 Congress]
    [From the U.S. Government Publishing Office]

                                  MEMBERS' DAY

    =======================================================================

                                    HEARING

                                   before the

                            COMMITTEE ON THE BUDGET
                            HOUSE OF REPRESENTATIVES

                         ONE HUNDRED ELEVENTH CONGRESS

                                 SECOND SESSION

                                   __________

                 HEARING HELD IN WASHINGTON, DC, MARCH 3, 2010

                                   __________

                               Serial No. 111-24

                                   __________

               Printed for the use of the Committee on the Budget

                           Available on the Internet:
           http://www.gpoaccess.gov/congress/house/budget/index.html

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                            COMMITTEE ON THE BUDGET

                 JOHN M. SPRATT, Jr., South Carolina, Chairman
    ALLYSON Y. SCHWARTZ, Pennsylvania    PAUL RYAN, Wisconsin,
    MARCY KAPTUR, Ohio                     Ranking Minority Member
    XAVIER BECERRA, California           JEB HENSARLING, Texas
    LLOYD DOGGETT, Texas                 SCOTT GARRETT, New Jersey
    EARL BLUMENAUER, Oregon              MARIO DIAZ-BALART, Florida
    MARION BERRY, Arkansas               MICHAEL K. SIMPSON, Idaho
    ALLEN BOYD, Florida                  PATRICK T. McHENRY, North Carolina
    JAMES P. McGOVERN, Massachusetts     CONNIE MACK, Florida
    NIKI TSONGAS, Massachusetts          JOHN CAMPBELL, California
    BOB ETHERIDGE, North Carolina        JIM JORDAN, Ohio
    BETTY McCOLLUM, Minnesota            CYNTHIA M. LUMMIS, Wyoming
    CHARLIE MELANCON, Louisiana          STEVE AUSTRIA, Ohio
    JOHN A. YARMUTH, Kentucky            ROBERT B. ADERHOLT, Alabama
    ROBERT E. ANDREWS, New Jersey        DEVIN NUNES, California
    ROSA L. DeLAURO, Connecticut,        GREGG HARPER, Mississippi
    CHET EDWARDS, Texas                  ROBERT E. LATTA, Ohio
    ROBERT C. ``BOBBY'' SCOTT, Virginia
    JAMES R. LANGEVIN, Rhode Island
    RICK LARSEN, Washington
    TIMOTHY H. BISHOP, New York
    GWEN MOORE, Wisconsin
    GERALD E. CONNOLLY, Virginia
    KURT SCHRADER, Oregon

                               Professional Staff

                Thomas S. Kahn, Staff Director and Chief Counsel
                     Austin Smythe, Minority Staff Director

                                C O N T E N T S

                                                                       Page
    Hearing held in Washington, DC, March 3, 2010....................     1

    Statement of:
        Hon. John M. Spratt, Jr., Chairman, Committee on the Budget..     1
            Prepared statement of....................................     1
        Hon. Harry Teague, a Representative in Congress from the
          State of New Mexico........................................     2
            Prepared statement of....................................     4
        Hon. Madeleine Z. Bordallo, a Delegate in Congress from the
          Territory of Guam..........................................     5
            Prepared statement of....................................     7
        Hon. Donna Christensen, a Delegate in Congress from the U.S.
          Virgin Islands.............................................    10
            Prepared statement of....................................    12
        Hon. Pete Olson, a Representative in Congress from the State
          of Texas...................................................    17
            Prepared statement of....................................    19
        Hon. Jason Altmire, a Representative in Congress from the
          State of Pennsylvania......................................    20
            Prepared statement of....................................    22
        Hon. Ann Kirkpatrick, a Representative in Congress from the
          State of Arizona...........................................    23
            Prepared statement of....................................    24
        Hon. Yvette D. Clarke, a Representative in Congress from the
          State of New York..........................................    25
            Prepared statement of....................................    27
        Hon. David Loebsack, a Representative in Congress from the
          State of Arizona...........................................    29
            Iowa Disaster Learning Conference........................    30
            Prepared statement of....................................    33
        Hon. Ron Klein, a Representative in Congress from the State
          of Florida.................................................    34
            Prepared statement of....................................    36
        Hon. Bob Inglis, a Representative in Congress from the State
          of South Carolina..........................................    37
            Prepared statement of....................................    39
        Hon. Earl Pomeroy, a Representative in Congress from the
          State of North Dakota......................................    40
            Prepared statement of....................................    43
        Hon. Brad Sherman, a Representative in Congress from the
          State of California........................................    44
            Prepared statement of....................................    45
        Hon. Henry C. ``Hank'' Johnson, Jr., a Representative in
          Congress from the State of Georgia.........................    46
            Prepared statement of....................................    47
        Hon. Eliot L. Engel, a Representative in Congress from the
          State of New York..........................................    48
            Prepared statement of....................................    50
        Hon. Danny K. Davis, a Representative in Congress from the
          State of Illinois..........................................    51
            Prepared statement of....................................    52
        Hon. Barbara Lee, a Representative in Congress from the State
          of California..............................................    53
            Prepared statement of....................................    54
            Congressional Black Caucus (CBC) Priorities for the FY
              2011 Budget............................................    56
        Hon. Suzanne M. Kosmas, a Representative in Congress from the
          State of Florida...........................................    61
            Prepared statement of....................................    62
        Hon. Bill Posey, a Representative in Congress from the State
          of Florida.................................................    63
            Prepared statement of....................................    65
        Hon. Deborah L. Halvorson, a Representative in Congress from
          the State of Illinois......................................    67
            Prepared statement of....................................    68
        Hon. Bob Filner, a Representative in Congress from the State
          of California..............................................    69
            Prepared statement of....................................    70
        Hon. Betty Sutton, a Representative in Congress from the
          State of Ohio..............................................    71
        Hon. Timothy J. Walz, a Representative in Congress from the
          State of Minnesota.........................................    73
            Prepared statement of....................................    74
        Hon. Michael E. McMahon, a Representative in Congress from
          the State of New York......................................    75
            Prepared statement of....................................    77
        Hon. Paul D. Tonko, a Representative in Congress from the
          State of New York..........................................    79
            Prepared statement of....................................    81
        Hon. Mike Quigley, a Representative in Congress from the
          State of Illinois..........................................    82
            Prepared statement of....................................    84
        Hon. James P. McGovern, a Representative in Congress from the
          State of Massachusetts.....................................    85
            Prepared statement of....................................    86
        Hon. Dina Titus, a Representative in Congress from the State
          of Nevada..................................................    88
            Prepared statement of....................................    89
        Hon. William Owens, a Representative in Congress from the
          State of New York..........................................    90
            Prepared statement of....................................    91
        Hon. Betsy Markey, a Representative in Congress from the
          State of Colorado..........................................    93
            Prepared statement of....................................    94
        Hon. Gabrielle Giffords, a Representative in Congress from
          the State of Arizona.......................................    96
            Prepared statement of....................................    98
        Hon. Rush D. Holt, a Representative in Congress from the
          State of New Jersey........................................    99
            Prepared statement of....................................   101
        Hon. Thomas S.P. Perriello, a Representative in Congress from
          the State of Virginia......................................   102
            Prepared statement of....................................   104
        Hon. Carolyn McCarthy, a Representative in Congress from the
          State of New York..........................................   104
            Prepared statement of....................................   105
        Hon. Gene Green, a Representative in Congress from the State
          of Texas...................................................   107
            Prepared statement of....................................   108
            Letter dated February 23, 2010...........................   110
        Hon. Lynn C. Woolsey, a Representative in Congress from the
          State of California........................................   114
            Prepared statement of....................................   115
        Hon. John L. Mica, a Representative in Congress from the
          State of Florida...........................................   116
            Prepared statement of....................................   118
            Comments on Views and Estimates dated March 3, 2010......   120
            Letter dated March 3, 2010...............................   128
        Hon. Laura Richardson, a Representative in Congress from the
          State of California........................................   131
            Prepared statement of....................................   133
        Hon. Gary C. Peters, a Representative in Congress from the
          State of Michigan..........................................   138
            Prepared statement of....................................   140
        Hon. Russ Carnahan, a Representative in Congress from the
          State of Missouri, prepared statement of...................   142
        Hon. John Lewis, a Representative in Congress from the State
          of Georgia, prepared statement of..........................   144
        Hon. Melissa L. Bean, a Representative in Congress from the
          State of Illinois, prepared statement of...................   147
        Hon. Vernon J. Ehlers, a Representative in Congress from the
          State of Michigan, prepared statement of...................   148
        Hon. Marcia L. Fudge, a Representative in Congress from the
          State of Ohio, prepared statement of.......................   149
        Hon. Phil Hare, a Representative in Congress from the State
          of Illinois, prepared statement of.........................   151
        Hon. Sheila Jackson-Lee, a Representative in Congress from
          the State of Texas, prepared statement of..................   152
        Hon. Bennie G. Thompson, a Representative in Congress from
          the State of Mississippi, prepared statement of............   153

                                  MEMBERS' DAY

                                  ----------

                            WEDNESDAY, MARCH 3, 2010

                              House of Representatives,
                                       Committee on the Budget,
                                                        Washington, DC.
        The Committee met, pursuant to call, at 10:00 a.m., in room
    210, Cannon House Office Building, Hon. John M. Spratt, Jr.
    [Chairman of the Committee] presiding.
        Present: Representatives Spratt, Kaptur, Blumenauer, Boyd,
    McGovern, Etheridge, McCollum, Larsen, Schrader.
        Chairman Spratt. I call the hearing to order. Today we
    convene for our annual Members' Day, a hearing to give members
    an opportunity to testify before the Budget Committee about
    priorities that are of importance to them and their
    constituency.
        As usual, we can expect a rather long day. We are scheduled
    to run until 2:30 p.m. this afternoon. It should also be an
    interesting day.
        On Members' Day, we get to hear testimony from a wide range
    of House members coming to talk to us about the budget items
    that are of particular importance to them and, of course, to
    their constituents.
        Today's testimony provides an important input to the Budget
    Committee as we move together towards markup of the annual
    budget resolution.
        A brief word about the ground rules for the day. Every
    member will have five minutes to present his or her testimony
    and respond to any questions. Your printed testimony, if
    submitted, will be incorporated in full into the record.
        The Ranking Member is not present yet. I will give him an
    opportunity to speak when he does arrive. But in the interest
    of time and getting on with the business today, I will turn to
    our first witness who is the Honorable Harry Teague.
        Mr. Teague, you may submit your statement for the record.
    You have five minutes. You can read it or summarize it as you
    see fit. Thank you for coming.
        [The prepared statement of Chairman Spratt follows:]

    Prepared Statement of Hon. John M. Spratt, Jr., Chairman, Committee on
                                   the Budget

        I call the hearing to order. Today we convene for our annual
    Members' Day hearing, which is an opportunity for members of the House
    to testify before the Budget Committee about priorities that are of
    particular importance to them.
        As usual, we can expect a rather long day. We are scheduled to run
    until about 2:30pm. It should also be an interesting day. On Members'
    Day, we get to hear testimony from a wide range of House Members,
    coming to talk to us about the budget items that are of importance to
    them and their constituents. Today's testimony provides important input
    to the Budget Committee as we put together the annual budget
    resolution.
        A brief word about the ground rules for today. Every Member will
    have five minutes to present his or her testimony and respond to any
    questions. Your printed testimony if submitted will be incorporated in
    full into the record.
        I would yield to the Ranking Member or his designee for any opening
    statement, and then turn to our first witness.

     STATEMENT OF HON. HARRY TEAGUE, A REPRESENTATIVE IN CONGRESS
                      FROM THE STATE OF NEW MEXICO

        Mr. Teague. Thank you, Chairman Spratt. Thank you for
    inviting me here today to testify before your Committee.
        I appreciate the opportunity to share my concerns about the
    impact the President's proposed fiscal year 2011 budget will
    have on our nation's veterans and to express my strong views
    that we in Congress must do everything that we can to ensure
    that we are sufficiently funding the Veterans Administration.
        I would first like to applaud the Administration for
    proposing a VA budget of $125 billion, which is an $11 billion
    increase over the 2010 enacted budget. The proposed budget
    includes $51.5 billion in resources for VA medical care, an
    increase of $4.1 billion over fiscal year 2010 levels.
        What I find most exciting is that under a new law that I
    was proud to work with Chairman Filner to pass, the
    Administration is able to request two budgets for the VA, one
    for total funding for fiscal year 2011 and another one to
    provide fiscal 2012 funding for certain VA medical accounts.
        The proposal for fiscal year 2012 that the Administration
    has put forward is a five percent increase in funding above the
    amounts requested for fiscal year 2011.
        Last year, I sat in this same chair expressing my
    disappointment that the President had not included advanced
    appropriations in his budget. This year, I am proud to say I
    cannot. Advanced appropriations ensure timely, sufficient, and
    predictable funding for veterans' healthcare. This means
    veterans are getting the best care that the VA can provide and
    decisions are based on the needs of the veterans, not budgetary
    constraints.
        Naturally this VA budget is not perfect. Over the past
    year, Veteran Service Organizations such as the Iraq and
    Afghanistan Veterans of America have warned Congress and the VA
    about the impending homecoming of the surge troops from Iraq.
    We know that these veterans will have a great number of needs
    and could overwhelm the VA health system, not only with wounds
    that we can see, but also with wounds we cannot see.
        However, increases in mental health and readjustment
    counseling are only six percent and four percent, respectively.
    With the number of these new veterans coming home with PTSD and
    TBI, coupled with the number of other veterans who are only now
    coming forward, I doubt that this increase will be enough to
    tend to their mental health needs.
        On another subject, I would like to bring to the
    Committee's attention to what I believe are some misinformed
    decisions by the Obama Administration, to eliminate certain tax
    provisions that are of particular importance to the small,
    independent oil and gas producers in states like New Mexico.
        I applaud President Obama for his proposals to build on the
    work of the American Recovery and Reinvestment Act and point
    our nation toward needed investments in renewable energy, but
    this investment of green energy cannot take place on the backs
    of the eight million Americans currently employed in the oil
    and gas industry.
        I have spent just about every day of my life since the age
    of 17 working in or on behalf of the oil and gas industry. I
    was a roughneck on a pulling unit when that work paid a dollar
    and fifty cents an hour. I was lucky enough to start a business
    drilling and working on oil and gas wells that employed 250 New
    Mexicans.
        So I come before you as someone who knows the industry
    inside and out and would like to provide you with information
    about how changes to oil and gas tax policy would affect the
    production of American oil and gas.
        Mr. Chairman, the Administration's 2011 budget proposal
    includes the repeal of several tax policies that are critical
    to the development of American natural gas and oil. Many of
    these tax policies have been in place for close to a hundred
    years and remain vital to the continued production of oil and
    natural gas in this country.
        The greatest effect of these tax increases would be felt by
    smaller American independent oil and gas producers who supply
    68 percent of American oil and 82 percent of American natural
    gas. The tax increases would also disproportionately choke off
    the production of natural gas which is essential to energy
    independence and carbon emission reductions and jeopardize the
    existing potential of recent natural gas discoveries.
        In New Mexico specifically, tax hikes on oil and gas
    production would hurt critical state services like law
    enforcement and education. Between 17 and 22 percent of the
    state's general fund budget comes from oil and gas tax revenues
    and up to 65 percent of the education budget is paid for by
    receipts from oil and gas.
        If the proposed repeals are enacted, one of the effects you
    will see is fewer resources in New Mexico classrooms.
    Ultimately, repeal of these policies would deepen our dangerous
    dependency on foreign oil and coal, America's good-paying jobs.
        I strongly urge you to write a budget resolution that
    ignores the President's proposed repeal of oil and gas tax
    policies.
        While the President's proposed tax increases on oil and gas
    are dangerous and ill advised, I would like to commend him for
    his support of nuclear energy, which offers a robust source of
    clean energy for our nation and a source of jobs for the people
    of southeast New Mexico.
        President Obama has proposed $36 billion in new loan
    authority for a total of $54.5 billion to expand support for
    Department of Energy loan guarantees for nuclear power
    facilities. This increased loan guarantee authority would
    provide assistance to bring seven to ten nuclear power plant
    projects on line.
        I ask the Committee to fully fund this request and consider
    further investment in the loan guarantee.
        Finally, I would like to make a single request to the
    Committee. As you know, this country is in perilous financial
    shape. President Obama has proposed a budget freeze. This is a
    relatively small gesture toward fiscal sanity. But if we can
    manage to just freeze spending as our deficit falls out of
    control, I do not have much faith that this Congress will be
    able to take the necessary steps to reduce our debt.
        I thank the Committee and I am happy to take any questions.
        Chairman Spratt. Mr. Teague, we thank you for coming. This
    is the reason we have Members' Day, to put everything on the
    table and to extract from different members different things
    that affect them and their constituents. And we appreciate your
    setting the pace with the comments you made today in several
    different areas. Thank you very much.
        Mr. Teague. Thank you again for having me.
        Chairman Spratt. Do you have anything you would like to
    submit for the record?
        Mr. Teague. Just my statement that I read. I will leave a
    copy of it.
        Chairman Spratt. So ordered.
        [The prepared statement of Harry Teague follows:]

     Prepared Statement of Hon. Harry Teague, a Representative in Congress
                          From the State of New Mexico

        Thank you, Chairman Spratt and Ranking Member Ryan, for inviting me
    here to testify before your Committee today. I appreciate the
    opportunity to share my concerns about the impact the President's
    proposed Fiscal Year 2011 Budget will have on our nation's veterans,
    and to express my strong views that we in Congress must do everything
    that we can to ensure that we are sufficiently funding the Veterans
    Administration.
        I would first like to applaud the Administration for proposing a VA
    budget of $125 billion, an $11 billion increase over the 2010 enacted
    budget. The proposed budget includes $51.5 billion in resources for VA
    medical care, an increase of $4.1 billion over fiscal year 2010 levels.
        What I find most exciting is that under a new law that I was proud
    to work with Chairman Filner to pass, the Administration is able to
    request two budgets for the VA: one for total funding for fiscal year
    2011, and another to provide fiscal 2012 funding for certain VA medical
    accounts. The proposal for fiscal year 2012 that the administration has
    put forward is a 5 percent increase in funding above the amounts
    requested for fiscal year 2011.
        Last year I sat in this same chair expressing my disappointment
    that the President had not included advanced appropriations in his
    budget. This year, I'm proud to say, I cannot. Advanced appropriations
    ensure timely, sufficient and predictable funding for veterans health
    care. This means veterans are getting the best care that the VA can
    provide and decisions are based on the needs of the veterans and not
    budgetary constraints.
        Naturally, this VA budget is not perfect. Over the past year,
    veterans' service organizations, such as the Iraq and Afghanistan
    Veterans of America, have warned Congress and the VA about the
    impending homecoming of the surge troops from Iraq. We know that these
    veterans will have a great number of needs and could overwhelm the VA
    health system, not only with wounds that we can see, but also with
    wounds we cannot see. However, increases in mental health and
    readjustment counseling are only 6% and 4% respectively. With the
    number of new veterans coming home with PTSD and TBI, coupled with the
    number of other veterans who are only now coming forward, I doubt that
    this increase will be enough to tend to their mental health needs.
        On another subject, I would like to bring to the committee's
    attention what I believe are some misinformed decisions by the Obama
    administration to eliminate certain tax provisions that the oil and gas
    industry needs. I applaud President Obama for his proposals to build on
    the work of the American Recovery and Reinvestment Act and point our
    nation toward needed investments in renewable energy, but this
    investment in green energy cannot take place on the backs of the eight
    million American currently employed in the oil and gas industry.
        I have spent just about every day of my life since the age of 17
    working in or on behalf of the oil and gas industry. I was a roughneck
    on a pulling unit when that work paid $1.50 an hour, and I was lucky
    enough to start a business drilling and working on oil and gas wells
    that employed 250 New Mexicans. So I come before you as someone who
    knows the industry inside and out and would like to provide you with
    information about how changes to oil and gas tax policy would affect
    the production of American oil and gas.
        Mr. Chairman, the Administration's 2011 budget proposal includes
    the repeal of several tax policies that are critical to the development
    of American natural gas and oil. Many of these tax policies have been
    in place for close to 100 years and remain vital to the continued
    production of oil and natural gas in this country. Disturbingly, the
    greatest effect of these tax increases would be felt by smaller
    American independent oil and gas producers, who supply 68 percent of
    American oil and 82 percent of American natural gas. The tax increases
    would also disproportionately choke off the production of natural gas--
    which is essential to energy independence and carbon emission
    reductions--and jeopardize the exciting potential of recent natural gas
    discoveries.
        In New Mexico, specifically, tax hikes on oil and gas production
    would hurt critical state services like law enforcement and education.
    Between 17 and 22 percent of the state's general fund budget comes from
    oil and gas revenues, and up to 65 percent of the education budget is
    paid for by receipts from oil and gas. If the proposed repeals are
    enacted, one of the effects you'll see is fewer resources in New Mexico
    classrooms.
        Ultimately, repeal of these policies would deepen our dangerous
    dependence on foreign oil and cost America good paying jobs. I strongly
    urge you to write a budget resolution that ignores the President's
    proposed repeal of oil and gas tax policies.
        While the President's proposed tax increases on oil and gas are
    dangerous and ill advised, I would like to commend him for his support
    of nuclear energy, which offers a robust source of clean energy for our
    nation and a source of jobs for the people of Southeast New Mexico.
    President Obama has proposed $36 billion in new loan authority--for a
    total of $54.5 billion--to expand support for Department of Energy loan
    guarantees for nuclear power facilities. This increased loan guarantee
    authority would provide assistance to bring seven to 10 nuclear power
    plant projects online. I ask the committee fully fund this request and
    consider further investment in the loan guarantee program.
        Finally, I would like to make a simple request to the committee. As
    you know, this country is in perilous financial shape. President Obama
    has proposed a budget freeze. This is a relatively small gesture toward
    fiscal sanity, but if we cannot manage to just freeze spending as our
    deficits spiral out of control, I don't have much faith that this
    Congress will be able to take the necessary steps to reduce our debt.
        I thank the committee and am happy to take questions.

        Chairman Spratt. Thank you very much again for coming.
        We will now turn to the Delegate from Guam, Ms. Bordallo.
        Ms. Bordallo, you are recognized for five minutes and if
    you wish, you can summarize your statement and the full printed
    copy of it will be made part of the record.

     STATEMENT OF HON. MADELEINE BORDALLO, A DELEGATE IN CONGRESS
                               FROM GUAM

        Ms. Bordallo. Thank you, Mr. Chairman. Good to see you
    again, Chairman Spratt.
        I have three issues to address relative to the Resolution
    on the Budget for fiscal year 2011.
        First, I respectfully renew my request and appeal to the
    Committee to include in the budget resolution sufficient
    budgetary headroom to allow for Congress to pass legislation
    implementing the recommendations of the Guam War Claims Review
    Commission as contained within H.R. 44, the Guam World War II
    Loyalty Recognition Act.
        I thank this Committee for including reference to the Guam
    War Claims legislation in its reports accompanying the budget
    resolution passed by the House for fiscal years 2008 through
    2010. This was critical to overcoming budgetary hurdles that
    slowed the bill's progress in reaching the House floor.
        On February 23rd of 2009, the House voted 299 to 99 to pass
    this legislation. Currently H.R. 44 is pending in the Senate
    where it has been referred to the Committee on Judiciary.
    Inclusion of budgetary headroom in this year's budget
    resolution will further help to take care of concerns raised in
    the Senate about how the program, if authorized, will be
    implemented. Language in the budget resolution can help us to
    move this legislation.
        As in previous years, the Congressional Budget Office
    estimates that the budget should provide for at least $126
    million over the next three fiscal years for the implementation
    of H.R. 44. This estimate is based on pay-out of every
    conceivable claim whose payment would be authorized by this
    bill. The CBO estimate further indicates that this would be
    paid for as a Budget 800 function or general government
    expenditure.
        The Congress has a moral obligation to bring closure for
    the loyal Americans who experienced the brutality of the
    occupation on Guam. Ensuring there is ample budget authority
    and ability of the Committee on Appropriations to appropriate
    amounts needed to pay the claims that would be authorized is
    very important in resolving this issue.
        Therefore, I respectfully request that the budget
    resolution for fiscal year 2011 take into account the costs
    associated with H.R. 44.
        Secondly, Mr. Chairman, the realignment of military forces
    to Guam is creating substantial budget pressures on the
    Department of Defense and the government of Guam. The largest
    part of this force posture change is the realignment of some
    8,600 Marines from the 3rd Marine Expeditionary Force currently
    stationed on Okinawa and their expected 9,000 dependents.
        The realignment of these forces alone is estimated to cost
    $14 billion over the next four to five years. Although nearly
    $6 billion of the total $14 billion cost will come from the
    government of Japan, the United States government will still
    require DoD to budget nearly $8 billion in funding over the
    next four to five years.
        DoD has not identified all the authorities that will be
    required in order to execute the Japanese funding through
    special purpose entities. As such, I ask that consideration be
    given to providing budgetary headroom in the budget resolution
    to allow execution of these funds in a public/private venture
    concept.
        Last year, Congress authorized and appropriated $734
    million for military construction in fiscal year 2010 due in
    some measure to the support of the members of this Committee.
    And I would request that the Committee support the President's
    budget submission for military construction funding for the
    Navy and Marine Corps as well as all other services in order to
    continue moving the military buildup on Guam further.
        However, I remain deeply concerned, Mr. Chairman, about the
    lack of any commitment for federal funding of Guam's civilian
    infrastructure needs. Without funding critical civilian
    infrastructure projects, the military buildup on Guam would be
    greatly slowed, adding substantial cost to the overall program.
    And, moreover, it will harm the quality of life for our people
    living on Guam.
        This point has been highlighted in numerous Government
    Accountability Office reports, although a detailed multi-year
    plan for civilian infrastructure funding is not available, I
    would ask that the Budget Committee provide sufficient
    budgetary headroom to address Guam's most pressing civilian
    infrastructure needs across the spectrum of federal government
    departments and agencies.
        Most importantly, phase one of the modernization
    requirements at the Port of Guam would require $100 million in
    budgetary authority. In total, the Port of Guam has a total
    requirement of $195 million in improvements to facilitate to
    commerce and intake of construction materials necessary for
    this buildup.
        Additionally, I request $300 million in budgetary authority
    for improvements to two primary wastewater treatment plants on
    Guam to bring them in compliance with the Clean Water Act.
    These plants were denied a Clean Water Act waiver by U.S. EPA
    in October of 2009 to operate with primary treatment only.
        Again, I respectfully request that budgetary headroom be
    sustained under the Clean Water State Revolving Fund and the
    Drinking Water State Revolving Fund so that the small
    territories may continue to receive funding from the Fund at
    the amount of 1.5 percent of the total overall obligation
    without impacting their jurisdictions.
        And, finally, as Chairwoman of the Subcommittee on Insular
    Affairs, Oceans and Wildlife, I respectfully request that the
    Committee provide budgetary headroom to increase the level of
    mandatory spending associated with the Compact-impact
    assistance.
        The law currently provides $30 million each year until 2023
    for federal grants to Guam, Hawaii, the Commonwealth of the
    Northern Mariana Islands, and American Samoa to assist with
    services provided to the citizens of the Compact states who
    migrate to these islands under the terms of the Compacts.
        The amount of $30 million each year, however, does not
    fully account for the actual impact and I ask that this
    Committee consider providing additional headroom to increase
    the mandatory Compact-impact assistance in its budget
    resolution.
        I appreciate the opportunity to appear before you and I
    submit my entire written testimony for the record. And I want
    to thank you for the consideration of my request as the
    Committee develops this year's budget resolution.
        And I thank you, Mr. Chair.
        Chairman Spratt. Thank you, Representative Bordallo. And
    for the record, if there is no objection, your statement will
    be entered in its entirety.
        Ms. Bordallo. Thank you.
        [The prepared statement of Madeleine Bordallo follows:]

        Prepared Statement of Hon. Madeleine Z. Bordallo, a Delegate in
                      Congress From the Territory of Guam

        Good morning Chairman Spratt and Ranking Member Ryan. Thank you for
    the opportunity to testify today. I have three issues to address
    relative to the resolution on the budget for Fiscal Year 2011.
        First, I respectfully renew my request and appeal to the Committee
    to include in the budget resolution sufficient budgetary headroom to
    allow for Congress to pass legislation implementing the recommendations
    of the Guam War Claims Review Commission as contained within H.R. 44,
    the Guam World War II Loyalty Recognition Act. Second, are the
    budgetary needs associated with the planned military build-up on Guam,
    for both the Department of Defense and critical civilian infrastructure
    projects needed to support and sustain the military build-up. And
    third, are matters pertaining to the scheduled reauthorization of the
    Compact of Free Association between the United States Government with
    the Republic of Palau, and a need to increase the level of Compact-
    impact assistance provided to affected jurisdictions, including Guam,
    Hawaii, and the Commonwealth of the Northern Mariana Islands.
        First, with respect to Guam war claims, I thank this committee for
    including reference to the Guam war claims legislation in its reports
    accompanying the budget resolutions passed by the House for fiscal
    years 2008 through 2010. This was critical to overcoming budgetary
    hurdles that slowed the bill's progress in reaching the House floor.
        We hope that the committee can continue its commitment again this
    year to help enable Senate passage of the legislation and its ultimate
    implementation by the Foreign Claims Settlement Commission.
        On the opening day of the 111th Congress, I re-introduced the Guam
    World War II Loyalty Recognition Act as H.R. 44. On February 23rd the
    House voted 299-99 to pass this legislation. Currently H.R. 44 is
    pending in the Senate, where it has been referred to its Committee on
    the Judiciary. In addition, I successfully included H.R. 44 as a
    provision in the House passed version of H.R. 2647, the National
    Defense Authorization Act for Fiscal Year 2010. Although the language
    was not included in the final version of the bill, the conference
    report recognized the need for the House and Senate Armed Services
    Committees to hold hearings on this bill. Under the leadership of
    Chairman Skelton, the House Armed Services Committee fulfilled their
    obligation and held a hearing on Guam war claims legislation and its
    integral relationship with the military buildup on December 2, 2009.
    The Senate Armed Services Committee has not yet announced their plans
    to hold a hearing on Guam war claims legislation. Inclusion of
    budgetary headroom in this year's budget resolution will further help
    to meliorate concerns raised in the Senate about how the program, if
    authorized, would be implemented. Language to this extent will further
    help our cause in moving this critical legislation forward in the
    Senate.
        As in previous years, the Congressional Budget Office estimates
    that the budget should provide for a least $126 million dollars over
    the next three fiscal years for the implementation of H.R. 44. This
    estimate is based on pay out of every conceivable claim whose payment
    would be authorized by H.R. 44. The CBO estimate further indicates that
    this would be paid for as a budget 800 function or general government
    expenditure. Ensuring there is ample budget authority and ability of
    the Committee on Appropriations to appropriate the amounts needed to
    pay the claims that would be authorized is integral to resolving this
    issue.
        The Guam War Claims Review Commission, which was authorized by the
    107th Congress, conducted hearings on Guam to receive testimony from
    survivors. In addition to these hearings, the Review Commission also
    received questionnaires from survivors on their experiences during the
    occupation. In total, approximately 8,000 questionnaires were received
    by the Review Commission primarily from survivors on Guam and to a
    smaller extent, from throughout the United States mainland. Based upon
    these returned questionnaires, it is estimated that the amounts of
    actual claims would be significantly lower than the Commission's
    original estimates and the conservative estimate provided by CBO. Death
    claims may be as low as 330 based on the self-declarations in the
    questionnaires. While injury claims may actually number closer to 4,000
    than 5,000.
        The Congress has a moral obligation to bring closure for the loyal
    Americans who experienced the brutality of the occupation on Guam.
    Therefore, I respectfully request that the budget resolution for Fiscal
    Year 2011 take into account the costs associated with H.R. 44.
        Second, the realignment of military forces to Guam is creating
    substantial budget pressures on the Department of Defense (DoD) and the
    Government of Guam. The largest part of this force posture change is
    the realignment of some 8,600 Marines from the Third Marine
    Expeditionary Force currently stationed on Okinawa, Japan and their
    expected 9,000 dependents. Additionally, the Air Force is realigning a
    Red Horse Squadron from Osan, Korea adding nearly 3,000 more airmen to
    Andersen Air Force Base along with a planned increase of Navy personnel
    on Guam. The realignment of these forces alone is estimated to cost $14
    billion dollars over the next four to five years.
        Unlike other military realignment, there is a significant cost
    contribution from the Government of Japan. In fact, nearly $6 billion
    dollars of the total $14 billion dollar cost will come from the
    Government of Japan and related entities. Although this will relieve
    some financial pressure on the United States Government, it will still
    require the Department of Defense and other federal agencies to program
    nearly $8 billion in resources over the next four to five years. DoD
    has not identified all the authorities that will be required in order
    to execute the Japanese funding through special purpose entities.
        As such, DoD will likely need budget room to program the Japanese
    funding dollars so they can be executed for projects on Guam.
        Last year this Congress authorized and appropriated $734 million
    for military construction in Fiscal Year 2010, due in some measure, to
    the support of members of this Committee. I would request that the
    Committee support the President's Budget submission for military
    construction funding for the Navy and Marine Corps as well as all the
    other services in order to continue moving the military build-up on
    Guam further. However, I remain deeply concerned about the lack of any
    commitment for federal funding of Guam's civilian infrastructure needs.
    Several years ago, the Government of Guam identified nearly $3 billion
    in funding to meet increased demands on the civilian infrastructure
    caused by the military build-up. Without funding for civilian
    infrastructure needs the military build-up on Guam will be greatly
    slowed adding substantial cost to the overall program. Moreover, it
    will harm the quality of life for people living on Guam. This point has
    been highlighted in numerous Government Accountability Office (GAO)
    reports. Most recently, a July 2009 report from GAO made the following
    finding, ``Without sufficient utility services, major construction
    projects, movement of Marines and other forces, and other buildup
    activities may fall behind schedule and increase implementation costs
    due to further compression of the timeline near the end of the
    implementation period.''
        Although a detailed multi-year plan for civilian infrastructure
    funding is not available, I would ask that the Budget Committee provide
    sufficient budgetary headroom to address Guam's civilian infrastructure
    needs across the spectrum of federal government departments and
    agencies. In particular, $100 million in budgetary authority is needed
    to meet phase 1 of modernization requirements at the Port of Guam. In
    total, the Port of Guam has a total requirement for $195 million in
    improvements to facilitate commerce and intake of construction
    materials necessary for the military build-up. If civilian
    infrastructure upgrades do not occur in the near term then the build-up
    will be delayed and it is unlikely that the local infrastructure could
    support or sustain the military build-up. Again, I respectfully request
    that this Committee provide headroom to address, at a minimum, this
    most pressing civilian infrastructure need.
        Additionally, two primary wastewater treatment plants on Guam were
    denied a Clean Water Act (CWA) waiver by USEPA in October of 2009 to
    operate with primary treatment only. The estimated cost to bring both
    plants into compliance with the secondary treatment requirements of the
    CWA amounts to approximately $300 million dollars. In their formal
    comments on the DEIS, the USEPA echoed the concerns I submitted in my
    comments regarding the need for significant water and wastewater
    infrastructure improvements on Guam necessary to sustain the military
    buildup. I, again, would respectfully request that budgetary headroom
    be sustained under the Clean Water State Revolving fund and the
    Drinking Water State Revolving Fund so that the small territories may
    continue to receive funding from the fund at the amount of 1.5 percent
    of the total overall obligation without impact other jurisdictions.
        Finally, as Chairwoman on the Subcommittee on Insular Affairs,
    Oceans and Wildlife, I respectfully request that the Committee re-
    evaluate the level of mandatory spending associated with Compact-impact
    assistance. The law currently provides $30 million dollars each year
    until 2023 for federal grants to Guam, Hawaii, the Commonwealth of the
    Northern Mariana Islands, and American Samoa, to assist with services
    provided to citizens of the Compact states who migrate to these islands
    under the terms of the Compacts. The amount of $30 million dollars each
    year, however, does not fully account for the actual impact, and I ask
    that the Committee consider providing for an increase to mandatory
    Compact-impact assistance in its budget resolution.
        I appreciate the opportunity to appear before you and submit this
    testimony for the record. Thank you for your consideration of my
    requests as the Committee develops this year's budget resolution.

        Chairman Spratt. And before turning to the gentle lady from
    the Virgin Islands, let me yield the gavel to Mr. Boyd and he
    will take over from here.
        Mr. Boyd [presiding]. Thank you, Mr. Chairman.
        The Chair is pleased to recognize the gentle lady from the
    U.S. Virgin Islands, Mrs. Christensen.

      STATEMENT OF HON. DONNA CHRISTENSEN, A DELEGATE IN CONGRESS
                      FROM THE U.S. VIRGIN ISLANDS

        Mrs. Christensen. Thank you, Mr. Chairman, for the
    opportunity to testify on the 2011 budget.
        My oral testimony, while the same in content will not
    follow my submitted one word for word.
        My first and most passionate plea is that the U.S. citizens
    and residents in the territories be treated with fairness,
    equity, and justice in every program and every agency and that
    the uniqueness of our situation be considered where appropriate
    as we go through the 2011 budget.
        I have spent more time at Arlington than I would have
    wished, the last time for burial of commingled remains which
    included two of my constituents from a helicopter shot down in
    Iraq.
        Some of the other territories have had more losses than
    ours in Afghanistan and Iraq.
        The second and particularly important point is that
    coverage and insurance reform is not enough to bring wellness
    of communities of color, poor, rural, and territorial
    communities.
        The ILAM and other reports have clearly demonstrated this
    and that the lack of insurance accounts for only 20 percent of
    disparities. We must address the other 80 percent. Health
    equity is the only goal worthy of this country.
        Although I am supportive of the goals the President seeks
    to address in his 2011 budget, it is inadequate to achieve
    health equity in our nation's poor and disadvantaged
    communities. The status quo that it would maintain is not
    acceptable.
        About 100 to 200 African American excess preventable deaths
    happen every day. American Indians do not even live long enough
    to die from diseases of old age. Asians are so
    disproportionately impacted by hepatitis B and its
    complications when Native Americans, Latinos, and African
    Americans have such high incidences of diabetes and
    complications and make up close to 70 percent of new HIV cases.
        Closing these gaps will require increases in select
    programs. There is, for example, hardly enough funding in the
    proposed budget for the healthcare workforce expansion needed
    to meet the needs of the newly insured 30 million plus people.
    We need more funding, including support for minority-serving
    institutions to address the need for diversity.
        I want to point out a few of the other programs that are
    critical to this effort. ADAP, the AIDS Drug Assistance
    Program, even the $20 million increase leaves too many AIDS
    patients waiting. Close to an additional $200 million is needed
    in 2011 as well as a supplemental this year.
        The Minority AIDS Initiative has never received the $610
    million we have requested in recent years, giving a severely
    disproportionate impact on communities of color. We need at
    least $800 million.
        Restoring the original intent of community capacity
    building, adequately funding the National Minority AIDS
    Education and Training Center, and having the funding finally
    follow the epidemic now could possibly phase out this
    initiative in a few years.
        The $2 million increase for the Office of Minority Health
    and the eight million for the National Center for Minority and
    Health Disparity Research at National Institutes of Health in
    the face of the gross health disparities only continues the,
    quote, peculiar indifference W.E.B. DuBois spoke of concerning
    the health of African Americans at the turn of the 19th century
    and what Surgeon General Heckler in 1985 called, quote, an
    affront to both our ideas and the genius of American medicine.
        The Office of Minority health must be expanded and funded
    accordingly and the Center at NIH must be elevated to an
    institute and its funding brought in line with the other
    institutes.
        Fully funding these and the other provisions of H.R. 3090,
    the Health Equity and Accountability Act, such as health, such
    as strengthening our public health infrastructure, and others
    are needed to ensure that every American has access to quality
    healthcare and wellness.
        While these are just a few of the programs important to
    bring about health equity, it is important to recognize these
    as investments in our people and our country's future.
    Eliminating disparities will raise our status in the world by
    reducing the maternal infant mortality and the general health
    status that causes us to lag behind every industrialized and
    some developing countries.
        Although I have chiefly focused on health funding, it would
    also fail to close the disparity gap because we have not
    addressed the social determinants of health or adequately
    engaged the affected communities.
        Increasing and sustaining healthy communities will require
    adequate funding for improving these determinants and every
    agency's budget. This is where both our efforts and our savings
    will be maximized.
        And, finally, we have to change the scoring process and
    health prevention must be scored and projections have to go
    beyond the current ten-year window. We are missing significant
    opportunities to reform healthcare and improve everyone's
    health because we are failing to use savings to help pay for
    what needs to be done.
        We owe change and hope to the majority in our hold. Change
    and hope is what we promised and what we owe to the people of
    this country. Our efforts must continue to support everyone's
    health, but we have a special duty to provide for the
    vulnerable, the left behind, the left out, the poor, dejected,
    and under-served, those who have no lobbyists, no political
    voice, no political clout. We cannot fail them. To fail them is
    to fail our country by not doing all we can to ensure that we
    remain strong, competitive, and the needy of the world needs us
    to continue to be.
        Thank you for the opportunity to testify once again on the
    budget and I am here willing to answer any questions you might
    have.
        [The prepared statement of Donna Christensen follows:]

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Mr. Boyd. Thank you, Dr. Christensen.
        I am reminded listening to your presentation of something I
    heard once, that you never saw a great country that had an
    unhealthy population.
        And I thank you for your focus on those issues.
        Mrs. Christensen. Thank you. And thank you again for the
    opportunity to testify.
        Mr. Boyd. The Chair is pleased to next recognize the
    gentleman from Texas, Congressman Olson, for five minutes.

    STATEMENT OF HON. PETE OLSON, A REPRESENTATIVE IN CONGRESS FROM
                           THE STATE OF TEXAS

        Mr. Olson. Congressman Boyd, thank you very much for the
    opportunity to testify before the Committee today.
        I appear before you to ask for continued funding for the
    Constellation Program at NASA. But make no mistake. I do not
    come before you to support a program or a budget item but a
    principle.
        Our nation has earned the right to be called the global
    leader in human spaceflight. This distinction took several
    decades, billions of dollars, both public and private
    technological break-throughs, and, yes, lives lost.
        The Administration's budget proposal does not just put this
    hard-earned leadership at risk, it abolishes it. The
    Constellation Program was a follow-on program to the soon to be
    retired Space Shuttle Program. On two separate occasions,
    Congress endorsed NASA's path to return to the moon and beyond
    through the development of the Constellation Program in both
    the 2005 and 2008 NASA Authorization Acts.
        The overwhelming bipartisan support was not accompanied,
    however, with sufficient funds to close the gap between when
    the space shuttle is retired and the constellation vehicles
    would come on line. There will be a gap between the retirement
    of space shuttle and the follow-on vehicle.
        The best case scenario could have been three years, but now
    it is more likely to be seven. In that time, we will rely
    solely on Russia to get our astronauts to the International
    Space Station which the United States taxpayer has paid the
    overwhelming share to build.
        With the shuttle in existence, the Russians charge $50
    million per seat right now. That is up from about $22 million
    last year. You can imagine what the cost will be when they are
    the only taxi in town.
        Fully funding constellation would have enabled us not only
    to bring a replacement vehicle on line earlier, but also to
    begin exploring beyond low earth orbit. The cost to cancel
    constellation is estimated to be $2.5 billion. These reports
    indicate that that number is at best an estimate which many
    believe is too low.
        Cutting this program is the single largest cut in the
    fiscal year 2011 budget proposal. But when the overall budget
    number increases while the signature human spaceflight program
    is cut, I question where the agency and our nation is setting
    its priorities.
        The Administration also proposes a drastic new way for NASA
    to do business. Instead of setting a destination, a goal and
    planning to go there, the agency will shift focus on developing
    technologies and determine destinations based on the outcomes
    of those investments and experiments.
        This raises many questions, many of them budgetary. These
    are questions, by the way, that the agency has not yet answered
    itself. We should be working to get these answers before these
    alternatives are adopted, especially as drastic as the cuts
    proposed are.
        NASA is establishing a fund set at $650 million for next
    year, increasing to $2.1 billion in fiscal year 2015 for
    technology demonstration. Without a clear understanding of what
    NASA will be developing, the possible outcomes for the agency
    are anybody's guess.
        NASA would risk devolving into a research and development
    agency or to appear to be hobby shopping with federal resources
    in lieu of actually flying missions. And that reality or even
    that perception could then lead towards increased pressure for
    funds to be either drastically cut or, worse, congressionally
    directed.
        Either of those outcomes does not enable us to achieve any
    type of worthwhile exploration strategy. And in conjunction
    with these developments and upon cancellation of the
    constellation, NASA proposes funding private commercial
    entities to ferry cargo and eventually crew to the
    International Space Station.
        These entities, which the budget proposes subsidizing,
    which will rely heavily on government investments and contracts
    have not sufficiently proven the right to be our nation's sole
    provider, sole means to space, that the business models are
    sustainable or that a market even exists beyond the government
    for its services.
        Human spaceflight by definition involves taking risk, but
    calculated, researched, responsible ones. This Committee must
    sit down with NASA to fully understand why investing billions
    to go somewhere, somehow, sometime is a wise use of taxpayer
    funds. To me, the risk to our economy, to our industrial base,
    and to our leadership in the world are simply not worth it.
        Let us work not to shift funds to technology development
    and NASA cancellation costs, but rather to putting
    constellation on secure footing. By doing so, we would also be
    putting human spaceflight back on track for a bright future
    worthy of its storied past.
        And, Mr. Chairman, I am happy to answer any questions. I
    appreciate the opportunity to testify before the Committee
    today and yield back my time.
        [The prepared statement of Pete Olson follows:]

      Prepared Statement of Hon. Pete Olson, a Representative in Congress
                            From the State of Texas

        Chairman Spratt, Ranking Member Ryan, members of the Budget
    Committee, thank you for the opportunity to testify before you today. I
    appear before you to ask to continue funding for the Constellation
    program at NASA. But make no mistake; I don't come before you to
    support just a program, or a budget item, but a principle. Our nation
    has earned the right to be called the global leader in human space
    flight. This distinction took several decades, billions of dollars--
    both private and government--technological breakthroughs, and yes,
    lives lost. The Administration's budget proposal doesn't just put that
    hard-won leadership at risk, it abolishes it.
        The Constellation program was the follow-on program to the soon to
    be retired space shuttle program. On two separate occasions, Congress
    endorsed NASA's path to return to the moon and beyond through
    development of the Constellation program in the 2005 and 2008
    Authorization Acts. The overwhelming bipartisan support was not
    accompanied, however, with sufficient funds to close the gap between
    when the shuttle was retired and the Constellation vehicles could come
    online.
        There will be a gap between shuttle retirement and a replacement
    vehicle. The best case scenario could have been three years, but is now
    more likely seven. In that time, we will rely solely on Russia to get
    our astronauts to the International Space Station, which the United
    States has paid the overwhelming share to build. With the shuttle in
    existence, the Russians charge $50 million per seat. You can imagine
    what the cost will be when they are the only taxi in town.
        Fully funding Constellation would have enabled us not only to bring
    a replacement vehicle online earlier, but also to begin exploring
    beyond low earth orbit again. The cost to cancel Constellation is
    estimated to be around $2.5B. Recent reports indicate that number is at
    best an estimate, which many believe is too low. Cutting this program
    is the largest single cut in the FY11 budget proposal. But when the
    overall budget number increases while the signature human space flight
    program is cut, I question where the agency, and our nation, is setting
    its priorities.
        The Administration also proposes a drastic new way for NASA to do
    business. Instead of setting a destination and planning to go there,
    the agency will shift focus on developing technologies and determine
    destinations based on the outcomes of those investments and
    experiments.
        This raises many questions, many of them budgetary. These are
    questions, by the way, the agency itself has not yet answered
    sufficiently. We should be working to get these answers before
    alternatives are decided, especially as drastic as the ones proposed.
        NASA is establishing a fund, set at $650M for next year, increasing
    to $2.1B in FY15, for technology demonstration. Without a clear
    understanding of what NASA will be developing, the possible outcomes
    for the agency are anybody's guess. NASA would risk devolving into an
    R&D agency or to appear to be hobby-shopping with federal resources in
    lieu of actually flying missions. That reality, or even that
    perception, could then lead to increased pressure for funds to either
    be drastically cut, or congressionally-directed. Either of those
    outcomes does not enable us to achieve any type of worthwhile
    exploration strategy.
        In conjunction with these developments and upon cancellation of
    Constellation, NASA proposes funding private commercial entities to
    ferry cargo, and eventually crew, to the International Space Station.
    These entities, which the budget proposes subsidizing, will rely
    heavily on government investment and contracts, have not sufficiently
    proven the right to be our nation's sole means to space, that their
    business models are sustainable, or that a market even exists outside
    of the government for their services.
        Human space flight by definition involves taking risks, but
    calculated, researched, and responsible ones. This committee must sit
    down with NASA to fully understand why investing billions to go
    somewhere, somehow, sometime is a wise use of taxpayer funds. To me,
    the risks to our economy, to our industrial base, and to our leadership
    in the world, are simply not worth it.
        Let us work not to shift funds to technology development programs
    and massive cancellation costs, but rather to putting Constellation on
    secure footing. By doing so we would also be putting our human space
    flight program back on track for a bright future worthy of its storied
    past.
        Thank you again for this opportunity, I yield back my time.

        Mr. Boyd. I thank you, Congressman Olson, for your
    continued interest and advocacy for our investment in science
    and research and the corresponding infrastructure. Thank you
    very much.
        Mr. Olson. Thank you, Mr. Chairman. Look forward to working
    on this issue in the future. Thanks.
        Mr. Boyd. It is my honor now and pleasure to recognize the
    gentleman from Pennsylvania, Representative Altmire, for five
    minutes.

    STATEMENT OF HON. JASON ALTIMIRE, A REPRESENTATIVE IN CONGRESS
                     FROM THE STATE OF PENNSYLVANIA

        Mr. Altmire. Thank you, Chairman Boyd.
        And I want to thank the entire Committee for allowing me
    the opportunity to testify.
        And as you prepare as a Committee the fiscal year 2011
    budget resolution, I would first urge you to pay tribute to the
    sacrifices made by our nation's veterans by fully funding their
    medical care and disability benefits.
        Last year, Congress answered this call by providing a
    record amount of funding for the VA and by meeting for the
    first time the recommendations put forth as part of the
    Independent Budget and the Veteran Service Organizations.
        And I hope that we can continue this tradition and again
    pass a budget resolution that contains full funding for our
    veterans.
        The President's $125 billion budget proposal for the
    Departments of Veterans Affairs includes an increase of $460
    million, representing a 27 percent funding increase for
    veterans over the 2010 level. This budget will help the VA
    continue to strengthen services for veterans, including hiring
    more than 4,000 additional claims processors to speed up the
    processing of veterans' benefits claims which I do not have to
    tell anyone on this Committee is long overdue.
        I regularly hear from veterans in western Pennsylvania
    about the discouraging and disorganized claims processing
    operation that confronts them as they seek medical treatment
    for service-connected health issues.
        And, Mr. Chairman, on behalf of the more than 60,000
    veterans residing in my district alone, many of whom already
    struggle to access their VA benefits, I respectfully ask that
    you fully fund the budget recommendations and pass a budget
    that prioritizes the needs of veterans and ensures that they
    have access to every benefit that they deserve and that they
    have earned.
        Similarly, the Department of Homeland Security budget is
    also of considerable concern to me and to my constituents. I am
    very pleased to see the Administration proposes to increase the
    budgets for programs focused on immigration status verification
    and criminal alien deportation.
        And I support the budget's funding for U.S. Citizenship and
    Immigration Services Bureau to support and to expand its
    important verification programs, E-Verify and the Systematic
    Alien Verification for Entitlements Program, SAVE, which
    ensures that employment benefits never become available to
    those in this country illegally.
        In addition, I also support the President's recommendation
    to provide full funding for Immigration and Customs Enforcement
    for the identification and removal of criminal aliens primarily
    through the Secure Communities Program. Those are good things.
        However, I strongly urge the Committee to reject the
    budget's proposal to cut the customs and border protection
    programs as well as the U.S. Coast Guard's budget by more than
    $129 million.
        I am also concerned that the proposal contains no money for
    border fence construction. This proposal fails to recognize
    that the 643 miles of physical border fence that we have is a
    good start, but it is well short of what is needed along the
    2,000 mile border between the U.S. and Mexico.
        And, Mr. Chairman and members of the Committee, cutting 180
    members of the Border Patrol and proposing flat funding for
    Immigration and Customs Enforcement in my opinion are short-
    sighted and simply unjustifiable proposals given the current
    national security environment and the challenges we face in
    curbing illegal immigration.
        I would now turn to America's small businesses which are
    having a difficult time accessing capital and creating jobs as
    all of us can see in our home districts, and I certainly see in
    western Pennsylvania. Small businesses drive job creation and
    help America emerge stronger from this recession.
        And, Mr. Chairman, I would ask that you support the budget
    proposal's commitment to guarantee funding levels for the 7(a)
    Lending Program and direct micro-loans to emerging
    entrepreneurs.
        In addition, and in closing, I would urge you support for
    vital tools such as Small Business Development Centers which I
    have seen firsthand have helped countless small business
    entrepreneurs in western Pennsylvania.
        Mr. Chairman and members of the Committee, thank you again
    for the opportunity to address you today and outline my
    specific priorities for the fiscal year 2011 budget. I yield
    back the balance of my time and would answer any questions that
    you have.
        [The prepared statement of Jason Altmire follows:]

    Prepared Statement of Hon. Jason Altmire, a Representative in Congress
                         From the State of Pennsylvania

        Thank you, Mr. Chairman and members of the committee. I appreciate
    the opportunity to testify today on the fiscal year 2011 budget
    resolution and its impact on western Pennsylvania.
        As you prepare the fiscal year 2011 budget resolution, I would
    first urge you to pay tribute to the sacrifices made by our nation's
    veterans by fully funding their medical care and disability benefits.
    Last year, Congress answered this call by providing a record amount of
    funding for the VA by meeting, for the first time, the recommendation
    put forth by the Independent Budget.
        I hope that we can continue this tradition and again pass a budget
    resolution that contains full funding for veterans.
        The president's $125 billion budget proposal for the Department of
    Veterans Affairs includes an increase of $460 million, representing a
    27 percent funding increase over the 2010 level. The president's budget
    will help the VA continue to strengthen services for veterans,
    including hiring more than 4,000 additional claims processors to speed
    up the processing of veterans' benefits claims.
        I regularly hear from veterans in western Pennsylvania about the
    discouraging and disorganized claims processing operation that
    confronts them as they seek medical treatment for service-connected
    health issues.
        Mr. Chairman, on behalf of the more than 60,000 veterans residing
    in my district--many of whom already struggle to access their
    benefits--I ask that you fully fund the President's recommendations and
    pass a budget that prioritizes the needs of veterans and ensures they
    have access to every benefit they deserve.
        The Department of Homeland Security budget is also of considerable
    concern to me and my constituents. I am pleased to see that the
    administration proposes to increase the budgets of programs focused on
    immigration status verification and criminal alien deportation.
        I support the Obama budget's $103 million for the U.S. Citizenship
    and Immigration Services bureau to support and expand its important
    verification programs, E-Verify and the Systematic Alien Verification
    for Entitlements (SAVE), which ensure that U.S. citizens are being
    employed during this difficult economic climate.
        In addition, I also support the president's recommendation to
    provide Immigration and Customs Enforcement with $1.6 billion for the
    identification and removal of criminal aliens, primarily through the
    Secure Communities program.
        However, I would urge the Committee to reject the budget's proposal
    to cut Customs and Border Protection by $317 million and the US Coast
    Guard's budget by $129 million. I am also concerned that the proposal
    contains no money for border fence construction. This proposal fails to
    recognize that the 643 miles of physical border fence that we have are
    a good start, but well short of what is needed for the 2,000 mile
    border between the U.S. and Mexico.
        Cutting 180 members of the Border Patrol and proposing flat funding
    for Immigration and Customs Enforcement are also short-sighted and
    unjustifiable proposals given current national security and immigration
    challenges.
        I turn now to America's small businesses, which are having a
    difficult time accessing capital and creating jobs. Small businesses
    drive job creation and will help America emerge stronger from this
    recession. Mr. Chairman, I would ask that you support the budget
    proposal's commitment to guaranteed lending programs, the 7(a) lending
    program, and direct microloans to emerging entrepreneurs.
        In addition, I urge your support for vital tools such as Small
    Business Development Centers, which I know have helped countless
    entrepreneurs in western Pennsylvania.
        Mr. Chairman and members of the committee, thank you for the
    opportunity to address the Committee and outline my priorities for the
    fiscal year 2011 budget. I yield back the balance of my time.

        Mr. Boyd. Thank you, Representative Altimire.
        I appreciate your advocacy for continued adequate funding
    for our security needs and particularly for those who come back
    injured after having performed those security needs for us. And
    I look forward to working with you in developing a budget that
    addresses these needs adequately.
        Mr. Altimire. Thank you, Mr. Chairman.
        Mr. Boyd. Thank you.
        It is my privilege now to recognize for five minutes the
    gentle lady from Arizona, Representative Kirkpatrick.

    STATEMENT OF HON. ANN KIRKPATRICK, A REPRESENTATIVE IN CONGRESS
                       FROM THE STATE OF ARIZONA

        Mrs. Kirkpatrick. Thank you, Mr. Chairman, Ranking Member,
    and members of the Committee. I appreciate this opportunity to
    talk with you about my views about the budget.
        I am proud to be a life-long resident of greater Arizona.
    Where I am from, folks understand that times are tough and when
    they are tough, you have to tighten your belt.
        As our economy starts to recover from some of the toughest
    times we have seen in decades, Arizonians are finding ways to
    make every dollar count and do more with less.
        Unfortunately, many here in Washington are unwilling to
    adopt that sensible approach. My constituents and I have become
    increasingly concerned with the federal debt as it continues to
    hit new historic highs with each new week.
        In the past year, prominent economists everywhere,
    including within the Administration, have said that continuing
    on this path of deepening debt is unsustainable. After a recent
    conference on the debt, the President of the bipartisan
    Committee for a Responsible Federal Budget said that we will
    face dire consequences if we do not act now to right our fiscal
    course.
        Yet, Washington seems set to do what it always does, get
    stuck in partisan gridlock and focus on making speeches instead
    of taking action. This country cannot afford the same old
    politics anymore.
        I appreciate the White House's proposal to freeze
    discretionary spending and their efforts to make our budget
    open and transparent by putting all of our nation's expenses on
    one balance sheet. However, I believe that such steps are not
    nearly enough.
        I would ask that the Budget Committee use the fiscal year
    2010 budget as the starting point for making significant cuts
    to the fiscal year 2011 budget. After all, those same fiscal
    year 2010 spending levels produced a record budget deficit. It
    is just common sense that most federal departments should be
    cutting from them.
        This government needs to set limits and then make the tough
    choices that it will take to get our fiscal house in order.
    Part of that process is cracking down on a consequence-free
    spending culture in Washington. We need to put an end to waste
    and there are plenty examples where Congress can start.
        The Government Accountability Office published a 300-page
    report in 2004 outlining where Congress can target, such as
    $160,000 puffer machines purchased by TSA but never fully
    deployed.
        I spoke to the Committee last year on concerns in my
    district about security, support for law enforcement, keeping
    our promises to our nation's veterans, and ensuring that small
    business remains the economic engine of our economy.
        In greater Arizona, we are still concerned about making
    progress on these and other issues, but we believe it is about
    setting the right priorities, not just piling on more and more
    federal spending on failed programs.
        I know budget cuts may not be easy and I know they are not
    popular, but business as usual in Washington has failed. It is
    time to stop talking and start doing what it takes to ensure
    that our massive federal debt does not stop our economic
    recovery in its tracks.
        Thank you for your consideration of my testimony and I look
    forward to working with the Budget Committee to set fiscal
    priorities. I yield back the balance of my time and I am happy
    to answer any questions you may have.
        [The prepared statement of Ann Kirkpatrick follows:]

        Prepared Statement of Hon. Ann Kirkpatrick, a Representative in
                       Congress From the State of Arizona

        Chairman Spratt, Ranking Member Ryan and Members of the Budget
    Committee, I thank you for providing me the opportunity to express my
    views today.
        I am proud to be a lifelong resident of Greater Arizona. Where I'm
    from, folks understand that when times are tough, you have to tighten
    your belt. As our economy starts to recover from some of the toughest
    times we have seen in decades, Arizonans are finding ways to make every
    dollar count and do more with less.
        Unfortunately, many here in Washington are unwilling to adopt that
    sensible approach.
        My constituents and I have become increasingly concerned with the
    federal debt, as it continues to hit new historic highs with each new
    week. In the past year, prominent economists everywhere--including
    within the Administration--have said that continuing on this path of
    deepening debt is unsustainable. After a recent conference on the debt,
    the president of the bipartisan Committee for a Responsible Federal
    Budget said that we will face ``dire consequences if we do not act now
    to right our fiscal course.''
        Yet, Washington seems set to do what it always does--get stuck in
    partisan gridlock and focus on making speeches instead of taking
    action. This country cannot afford the same old politics any more.
        I appreciate the White House's proposal to freeze discretionary
    spending, and their efforts to make our budget open and transparent by
    putting all of our Nation's expenses on one balance sheet.
        However, I believe that such steps are not nearly enough. I would
    ask that the Budget Committee use Fiscal Year 2010 budget levels as the
    starting point for making significant cuts to the Fiscal Year 2011
    budget. After all, those same Fiscal Year 2010 spending levels produced
    a record budget deficit; it's just common sense that most federal
    departments should be cutting from them. This government needs to set
    limits, and then make the tough choices that it will take to get our
    fiscal house in order.
        Part of that process is cracking down on the consequence-free
    spending culture in Washington. We need to put an end to waste--and
    there are plenty of examples where Congress can start. The Government
    Accountability Office published a 300-page report in 2004 outlining
    where Congress can start and continues to identify targets--such as the
    $160,000 puffer machines purchased by TSA but never fully deployed.
        I spoke to the committee last year on concerns in my district about
    security, support for local law enforcement, keeping our promises to
    our nation's Veterans, and ensuring that small business remains the
    economic engine of our economy. In Greater Arizona, we are still
    concerned about making progress on these and other issues, but we
    believe it is about setting the right priorities, not just piling on
    more and more federal spending on failed programs like these.
        I know budget cuts may not be easy or popular, but business as
    usual in Washington has failed. It is time to stop talking and do what
    it takes to ensure that a massive federal debt does not stop our
    economic recovery in its tracks.
        Thank you for your consideration of my testimony and I look forward
    to working with the budget committee to set fiscal priorities.

        Mr. Boyd. Thank you very much, Representative Kirkpatrick.
        You have made a presentation that is obviously very near
    and dear to my heart. I have been working on those issues all
    of my career and I look forward to working with you on this.
        Mrs. Kirkpatrick. Thank you.
        Mr. Boyd. Thank you.
        Mrs. Kirkpatrick. Thank you very much.
        Mr. Boyd. It is my privilege now to recognize the gentle
    lady from New York, Representative Clarke.

     STATEMENT OF HON. YVETTE CLARKE, A REPRESENTATIVE IN CONGRESS
                       FROM THE STATE OF NEW YORK

        Ms. Clarke. Thank you very much, Mr. Chairman.
        I want to thank you for this opportunity to discuss the
    federal budget's impact on minority and woman-owned small
    businesses and other engines of community development in New
    York State, New York City, and by extension our nation.
        I am pleased with the direction that the Administration is
    going. However, more can be done to support and spur innovation
    and growth by investing in small businesses and the communities
    they serve.
        According to the New York State Small Business Task Force,
    in New York State, small business is big business. Small
    business represents over 98 percent of all of the state's
    private employers, employ 55 percent of the state's active
    private sector labor force. Minority and women-owned small
    businesses employ nearly five million people and make up almost
    20 percent of all businesses in the United States.
        Unfortunately, the economic recession has hit these
    businesses especially hard, forcing more to shed jobs or scale
    back operations.
        The credit crisis has made it more difficult for all small
    businesses to secure financing, limiting growth opportunities
    and jeopardizing short-term business stability.
        The President's fiscal year 2011 budget presents us with an
    opportunity to reset the stage for economic growth for now and
    in this decade and beyond.
        As a member of the House Committee on Small Business, I
    have been in touch with minority and women-owned businesses
    from all across the country, especially those from under-served
    and economically distressed areas that have been
    disproportionately affected by this difficult downturn.
        Today I want to highlight three critical programs that
    impact these businesses and the communities they serve.
        I first want to ask you to provide $260 million for the
    Community Development Financial Institutions Fund which is ten
    million above the Department of Treasury's request of $250
    million.
        I am proposing that an additional ten million be allocated
    to the CDFI Program. Founded in 1994, the Community Development
    Financial Institutions Fund or the CDFI Fund is a much needed
    economic stimulus tool. CDFIs are loan funds, banks, credit
    unions, community development venture capital funds, and other
    organizations principally engaged in economic development.
        CDFI customers are 70 percent low income, 60 percent
    minority, and 52 percent female. In light of the economic
    downturn and subsequent restriction on lending to low- and
    moderate-income families and small businesses, the work of
    CDFIs is especially important right now.
        On December 2nd of 2009, the FDIC released a study which
    reported that approximately 30 million Americans do not have
    access to traditional banks or credit unions. That means that
    54 percent of African American households and 43 percent of
    Hispanic households often turn to alternative financial
    services such as pay-day loans, title loans, and other cash
    advances that charge exorbitant rates to access capital.
        CDFIs work every day to provide credit to under-served
    populations, replacing their need to turn to high-priced
    alternative financial products.
        While the President's request for $250 million for fiscal
    year 2011 illustrates the Administration's commitment to this
    important fund, consumer demand for CDFI Program assistance has
    skyrocketed during this recession.
        With the additional $10 million, the CDFI Program would
    receive a total of $150 million to expand the availability of
    affordable capital and credit products to distressed families
    and small businesses. Congress must invest in this important
    economic stimulus tool.
        Secondly, I want to ask the Committee to fund the Minority
    Business Development Agency, MBDA, at $40 million, an $8
    million increase over the Department of Commerce's fiscal year
    2011 budget request of over $32 million for the agency.
        The Administration's $816,000 increase over the fiscal year
    2010 funding level is a modest improvement, but this sum will
    not make the kind of tangible impact my constituents are
    seeking.
        MBDA has served minority businesses since 1969 and it is
    the sole federal agency devoted specifically to the
    establishment and growth of minority businesses in America.
    Through a network of minority business centers, strategic
    partners, MBDA works with minority entrepreneurs who wish to
    grow their businesses in size, scale, and capacity. These firms
    are then in a better position to create jobs, impact local
    economies, and expand into national and global markets.
        In light of the current economic climate which has been
    plagued by persistent job loss and high unemployment rates,
    MBDA can play a central role in mobilizing resources to
    increase minority business capacity and improve economic
    outcomes.
        During fiscal year 2009, with a budget of just under $30
    million, MBDA was able to create 3,024 new jobs and preserve
    thousands more while facilitating $2.9 billion in new business
    to business opportunities, development, and development
    projects.
        My constituents have told me that the MBDA's efforts in
    2009 were helpful to their business expansion and job creation
    endeavors, but they believe more can be done.
        In order for the MBDA to deliver their effective,
    personalized services to more minority entrepreneurs, it is
    vital that the agency have adequate financial resources. The
    agency can use the increased funding to open additional
    business development centers which has been cut, more than 100
    in 1969 to just 40 as of today.
        With 40 million, the MBDA would also be able to increase
    its team of skilled and experienced nationwide staff. By
    adequately funding the MBDA, hundreds more small- and medium-
    sized businesses would have access to technical assistance and
    capacity building tools necessary to help them prosper.
        Our relatively small investment in this important agency
    would mean thousands of Americans would be able to either get
    back to work or keep their jobs.
        Lastly, I want to express my strong support for increased
    funding for the Community Development Block Grant. As I
    discussed in my testimony last year, the CDBG Program provides
    vulnerable communities with resources to address a wide range
    of unique community development needs.
        One of the Department of Housing and Urban Development's
    longest-running programs, CDBG helps fund local community
    development activities such as affordable housing, anti-poverty
    programs, economic development initiatives, and infrastructure
    development.
        Unfortunately, CDBG funding has been decreasing over the
    last several budget years, totaling $3.9 billion in fiscal year
    2009.
        The Administration's fiscal year 2010 proposal raised that
    level, funding level to $4.45 billion, almost back to the
    fiscal year 2004 levels. CDBG formula grants rose from $3.6
    billion to over $4 billion in the 2010 budget. Appropriated
    amounts for fiscal year 2010 were $4.45 billion and $3.99
    billion for formula grants. This year, the Administration has
    stayed near these numbers with requests of $4.38 billion and
    $3.99 billion for formula grants.
        I urge this Committee to support funding for the CDBG
    Program at the fiscal year 2010 level of $4.45 billion and
    $3.99 for formula grants.
        Thank you again for the opportunity to testify before this
    Committee today. I look forward to working with you over the
    next several weeks to craft a budget that provides fiscal
    recovery and responsibility while addressing the needs and
    priorities of the people of New York City and all Americans.
    And I yield back the balance of my time.
        [The prepared statement of Yvette Clarke follows:]

       Prepared Statement of Hon. Yvette D. Clarke, a Representative in
                      Congress From the State of New York

        Mr. Chairman, Ranking Member Ryan, and Members of the Committee, I
    would like to thank you for this opportunity to discuss the federal
    budget's impact on minority and women owned small businesses and other
    engines for community development in New York City. I am quite pleased
    with the direction that the Administration is going, however more can
    be done to support spur innovation and growth by investing in small
    businesses and the communities they serve.
        According to the New York State Small Business Task Force, in New
    York State, small business is big business. Small businesses represent
    over 98 percent of all of the State's private employers and employ 55
    percent of the State's active private sector labor force. Minority- and
    Women-owned small businesses employ nearly 5 million people and make up
    almost 20% of all businesses in the United States. Unfortunately, the
    economic recession has hit these businesses especially hard, forcing
    many to shed jobs or scale back operations. The credit crisis has made
    it more difficult for all small businesses to secure financing;
    limiting growth opportunities and jeopardizing short term business
    stability.
        The President's Fiscal Year 2011 Budget presents us with an
    opportunity to reset the stage for economic growth for the in this
    decade and beyond. As a Member of the House Committee on Small
    Business, I have been in touch with Minority- and Women-owned
    businesses from all across the country, especially those from
    underserved and economically distressed areas that have been
    disproportionately affected by this difficult downturn. Today, I want
    to highlight three critical programs that impact these businesses and
    the communities they serve.
        I first want to ask that you provide $260 million for the Community
    Development Financial Institutions Fund, which is $10 million above the
    Department of Treasury's request of $250 million. I am proposing that
    the additional $10 million be allocated to the CDFI Program. Founded in
    1994, Community Development Financial Institutions Fund, or the CDFI
    Fund, is a much needed economic stimulus tool.
        CDFIs are loan funds, banks, credit unions, community development
    venture capital funds and other organizations principally engaged in
    economic development. CDFI customers are 70 percent low income, 60
    percent minority and 52 percent female. In light of the economic
    downturn and subsequent restriction on lending to low- and moderate-
    income families and small businesses, the work of CDFIs is especially
    important right now.
        On December 2, 2009, the FDIC released a study which reported that
    approximately 30 million Americans do not have access to traditional
    banks or credit unions. That means that 54 percent of African American
    households and 43 percent of Hispanic households often turn to
    alternative financial services such as payday loans, title loans, and
    other cash advances, that charge exorbitant rates to access capital.
    CDFIs work every day to provide credit to underserved populations,
    replacing their need to turn to high priced alternative financial
    products. While the President's request of $250 million for FY 2011
    illustrates the Administration's commitment to this important Fund,
    consumer demand for CDFI program assistance has skyrocketed during this
    recession. With the additional $10 million, the CDFI program would
    receive a total of $150 million to expand the availability of
    affordable capital and credit products to distressed families and small
    businesses. Congress must invest in this important economic stimulus
    tool.
        Second, I want to ask the committee to fund the Minority Business
    Development Agency (MBDA) at $40 million, an $8 million increase over
    the Department of Commerce's FY2011 budget request of over $32 million
    for the Agency. The Administration's $816 thousand increase over the
    FY2010 funding level is a modest improvement, but this sum will not
    make the kind of tangible impact my constituents are seeking.
        MBDA has served minority businesses since 1969 and is the sole
    federal agency devoted specifically to the establishment and growth of
    minority businesses in America. Through a network of minority business
    centers and strategic partners, MBDA works with minority entrepreneurs
    who wish to grow their businesses in size, scale, and capacity. These
    firms are then better positioned to create jobs, impact local
    economies, and expand into national and global markets.
        In light of the current economic climate which has been plagued by
    persistent job loss and high unemployment rates, MBDA can play a
    central role in mobilizing resources to increase minority business
    capacity and improve economic outcomes. During FY 2009, with a budget
    of just under $30 million, MBDA was able to create 3,024 new jobs and
    preserve thousands more while facilitating $2.9 billion in new
    business-to-business opportunities and development projects. My
    constituents have told me that MBDA's efforts in 2009 were helpful to
    their business expansion and job creation endeavors, but they believe
    more can be done.
        In order for the MBDA to deliver their effective and personalized
    services to more minority entrepreneurs, it is vital that the Agency
    have adequate financial resources. Te agency can use the increased
    funding to open additional business development centers, which has been
    cut from more than one hundred in 1969, to just forty as of today. With
    $40 million, the MBDA would also be able to increase its team of
    skilled and experienced nationwide staff.
        By adequately funding the MBDA, hundreds more small and medium
    sized businesses would have access to the technical assistance and
    capacity building tools necessary to help them prosper. Our relatively
    small investment in this important Agency would mean that thousands of
    Americans would be able to either get back to work or keep their jobs.
        Lastly, I want to express my strong support for increased funding
    of the Community Development Block Grant (CDBG). As I discussed in my
    testimony last year, the CDBG program provides vulnerable communities
    with resources to address a wide range of unique community development
    needs. One of the Department of Housing and Urban Development's (HUD)
    longest running programs, CDBG helps fund local community development
    activities such as affordable housing, anti-poverty programs, economic
    development initiatives, and infrastructure development.
        Unfortunately, CDBG funding had been decreasing over the last
    several budget years, totaling $3.9 billion in FY 2009. The
    Administration's FY 2010 proposal raised that funding level to $4.45
    billion, almost back to FY 2004 levels. CDBG Formula Grants rose from
    $3.6 billion to over $4 billion in the FY 2010 budget. Appropriated
    amounts for FY 2010 were $4.45 billion and $3.99 billion for formula
    grants. This year, the Administration has stayed near these numbers
    with requests for $4.38 billion and $3.99 billion for formula grants. I
    urge this committee support funding for the CDBG program at the FY 2010
    level of $4.45 billion and $3.99 for formula grants.
        Thank you again for the opportunity to testify before this
    committee today. I look forward to working with you over the next
    several weeks to craft a budget that provides fiscal recovery and
    responsibility, while addressing the needs and priorities of the people
    of New York City and all Americans.

        Mr. Boyd. Thank you, Representative Clarke----
        Ms. Clarke. Thank you.
        Mr. Boyd [continuing]. For your focus on economic
    development and jobs. And we look forward to working with you
    to develop a budget that reflects those priorities.
        Ms. Clarke. Thank you very much.
        Mr. Boyd. At this point, before we recognize the next
    presenter, I would like to turn the gavel over to the gentle
    lady from Minnesota, Representative McCollum.
        Ms. McCollum [presiding]. The Chair recognizes the
    gentleman from Iowa, Mr. Loebsack, for five minutes.

     STATEMENT OF HON. DAVE LOEBSACK, A REPRESENTATIVE IN CONGRESS
                         FROM THE STATE OF IOWA

        Mr. Loebsack. Thank you, Madam Chair.
        I want to thank the Chairman and Ranking Member in
    particular for the opportunity to testify on the fiscal year
    2011 budget. This will certainly be a difficult budget year and
    I believe that we must commit to fiscal responsibility and
    important pay-as-you-go rules.
        This year, we must further rein in spending, reduce the
    deficit, and address our long-term fiscal health by enacting a
    spending freeze, implementing cost-saving measures for the
    federal government, and eliminating redundant and wasteful
    federal spending.
        While these proposals are just first steps, they are an
    important jumpstart to what should be a concerted effort to
    significantly reduce the deficit and work toward long-term
    economic recovery.
        Previously I testified about the importance of actually
    budgeting for disasters and disaster relief costs. This year,
    we must continue a commitment to honesty in the budget by
    accounting for estimated disaster response and relief costs.
        Honesty in the budget is a crucial step toward responsible
    spending and deficit reduction. Just as an Iowa family would
    not honestly omit a cost they know they will face in the future
    from their household budget, neither should the federal
    government pretend that natural disasters will not affect the
    American people.
        I come today to testify like last year about an effort
    relating to disaster response and recovery, specifically the
    Long-Term Disaster Recovery Working Group. The working group
    was formed by the President on September 29th, 2009 and is
    Chaired by the Secretaries of Homeland Security and HUD.
        The purpose of the working group is to gather input
    nationwide from disaster-affected communities and states, other
    stakeholders, emergency managers, first responders, nonprofits,
    and private organizations in order to formulate recommendations
    to improve our nation's disaster response and recovery system.
        In January, I was pleased to be able to host along with HUD
    and the Rebuild Iowa Office the Iowa Disaster Recovery Learning
    Conference at the Kirkwood Center for Continuing Education in
    Cedar Rapids, Iowa. This conference was part of the working
    group's national outreach effort. And while I wish Iowa did not
    have reason to participate, the conference was productive and
    brought together a wide variety of stakeholders throughout Iowa
    and produced common-sense suggestions and ideas for reform.
        During the summer of 2008, the State of Iowa experienced
    the worst national disaster in our history. I want to thank my
    colleagues for working with me last Congress to approve two
    disaster recovery funding bills and a tax assistance package.
    My congressional district had arguably the largest amount of
    damage from the floods and includes Iowa's second largest city,
    Cedar Rapids, which sustained severe damage along with numerous
    other cities such as Iowa City, Palo, and Oakville.
        As Iowans continue to recover, we have a unique opportunity
    and have had a unique opportunity to share what worked, what
    did not, how Iowans and the federal government worked together,
    and how the federal government can be a better partner in the
    recovery and response process.
        After the floods of 2008, I began advocating and bringing
    attention to the need for disaster policy reforms. I will
    continue to advocate for reforms in Iowa's disaster recovery
    needs and would like to enter for the record the common-sense
    recommendations and best practices developed at the Iowa
    Disaster Recovery Learning Conference. I am also sending this
    information to other relevant House Committees and I have that
    information with me today. I would like to enter that as part
    of the record.
        [The attachment of Dave Loebsack follows:]

                       Iowa Disaster Learning Conference

                             breakout notes summary

                                January 29, 2010

    Best Practices, Innovations and Lessons Learned in Disaster Recovery
            Efforts
                Communication
         Communication needs to be consistent, from a local source,
    and maintained throughout the recovery.
         Communications should include daily reports on road
    statuses, availability of services, etc.
         Providing forums like town hall meetings will increase
    consistency and allow for two-way communication.
         Manage expectations regarding timelines.
                Data
         A system for data sharing needs to be in place. Nonprofits
    and government agencies need to know who is working on what to avoid
    duplicating benefits and to provide for unmet needs.
         Electronic records could be shared among entities (after a
    release is signed). This could possibly be in the form of a database or
    an individual assistance card.
         Forms and applications should be filled out by agencies,
    not by the people who experienced the disaster.
         Stress importance of keeping track of how dollars are
    spent so it does not become a hassle later. Pre-development of a form,
    spreadsheet or database should be considered. Training should be
    provided for case managers.
         State agencies and nonprofits can provide training and
    resources to local committees.
                Volunteers & Donations
         Best practice models like a volunteer reception center
    (Gulf Coast) to keep volunteers plugged in or a volunteer web tool (Des
    Moines) to match unaffiliated volunteers with local needs, should be
    utilized during future recoveries.
         A plan should be in place in advance on how to manage
    donations, including the availability of warehouses and how items can
    be sorted and distributed.
         Consider one organization to manage all donations of
    goods. Should there be a set of predetermined questions to assess needs
    of affected communities?
         Plug into the Corporation for National and Community
    Service, state service commission and to state and local COADs for
    resources and volunteers.
                Long-Term Recovery
         Include a Long-Term Recovery Committee team in the
    Emergency Operations Center (EOC).
         Local plans designed by locals to address local issues
    should be in place.
         Innovations in local recovery include: Block by Block,
    Feet on the Street, JumpStart
         Conduct recovery exercises every 3 to 5 years.
         Consider recovery equivalent of National Incident
    Management System (NIMS).
    Developing a Planning Framework for Disaster Recovery
                Defining Roles and Responsibilities
         Develop common terminology and guidance on federal
    programs that can then be translated into state and local impacts,
    implementation and responsibilities.
         Agencies should collaborate on creating recovery plans so
    individual agency roles and responsibilities and clear.
                Strengthening Pre- and Post-Disaster Processes to Better
                        Include Nonprofits
         Dollars should be allocated to disaster recovery planning
    (not just response planning) and associated training, capacity
    building, etc., including seed money and a sustainable funding source
    that is available prior to disasters.
         Greater flexibility is needed for local recovery projects/
    programs and associated funding sources to reach recovery goals. We
    need to recognize that disasters are local and every community is
    different.
         There is a need for a formal structure/framework for
    identifying all necessary partners and their respective roles to
    facilitate an effective recovery planning and implementation process.
         The federal government should implement greater recovery
    planning and centralize federal recovery coordination. Partnerships
    should be emphasized to leverage resources.
         Consider passing federal recovery funds for planning and
    projects/programs (e.g. CDBG) directly to local governments and
    organizations.
         An effective recovery planning process includes meaningful
    participation. Impacted individuals need to be identified and
    encouraged to participate. Facilitators must ensure that input is truly
    considered and respected. Facilitators must effectively communicate the
    process and agreed-upon course of action.
                Capacity Challenges
         Greater surge capacity is needed to handle hiring and
    activate partnerships more quickly.
         There is a need to ensure that institutional knowledge is
    not lost between disasters.
         There is often a shortage of staff with technical skills.
         Volunteer burnout can be a capacity challenge.
    Strengthening Disaster Recovery Programs, Policy and Funding
                Elements of Successful Disaster Recovery
         LTRCs mobilizing that are knowledgeable and recognized in
    the community.
         The mental health and state of the community can be a
    useful indicator of recovery efforts. There is a need to recognize that
    recovery has several stages of emotion.
         Practicing recovery exercises between disasters will
    increase the successful implementation of recovery efforts.
         Successful disaster recovery hinges on partnerships
    between government, nonprofits and local businesses.
         Having the ability to disburse funds quickly and to those
    who need it (with limited restrictions, paperwork, etc.) allow for more
    efficient and effective recovery efforts.
         To be successful, language and requirements/restrictions
    need to be clearly communicated to case managers and disaster
    survivors.
         Co-location of resources and ``one-stop-shops'' make case
    management more effective.
                Milestones/Indicators of Recovery
         Closing shelters/ No people in temporary housing units
    (THUs)
         No longer debris/sandbags on curbs
         Re-opening facilities (schools, jails, churches, etc.)
         Infrastructure repair/ replacement
         Completed property acquisitions
                Issues
         Generational/owner housing issues need to be resolved and
    clarified.
         Buyouts and reconstruction processes need to be expedited.
         Capacity planning should be a part of pre-disaster period.
         More funding is needed for hazard mitigation.
         There needs to be more funding options for small
    businesses and landlords.
         The recovery process is not well understood. Media
    decreases, funding dries up, volunteers leave, etc.
         Fraud protection and property security need to be planned
    for.
         More organization is needed in volunteer efforts and
    coordination.
         Damage to agricultural assets, farmers with unmet needs
    that weren't addressed by typical funding streams.
                Common Unmet Needs Not Addressed by Current System
         There is ``little assistance'' for unmet needs beyond
    general housing, like utilities, first month's rent and deposit, loss
    of private property, etc. Income levels are too restrictive. People who
    make over 150% AMI are victims also.
         Generational housing restrictions need to be reworked.
         There is no plan in place for disabled persons' temporary
    housing.
         Child care is needed during disaster response AND
    recovery.
                Coordinating private and public funding
         Training should be given to case managers and survivors on
    how funds can be used and why records need to be kept.
    Providing Effective Disaster Case Management
                Providing Case Management
         There needs to be a pre-existing case management plan with
    prescribed roles and processes, including a case management flow chart
    with access to local, state and federal resources.
         Long term recovery committees (LTRCs) should be activated
    at the same time the EOC is activated. Partners should be in place.
    LTRCs should immediately distribute instructions/checklists and contact
    lists to case managers. Readiness is key.
         Individuals should have case managers from the start to
    give them immediate instructions and referral.
                Improving Case Management Practices
         A statewide model/guidelines should be developed with
    flexibility to address local needs.
         Increase surge capacity by having a bank of interim case
    managers.
         Training should be provided for recovery between
    disasters. Having a core of pre-trained case managers would be
    beneficial.
         There should be greater penalties for fraud.
         Provide assessments in a timelier manner.
         Increase the amount of flexible funding.
         There needs to be better control over communications,
    keeping them consistent and creating realistic expectations.
                Nonprofits Role in Case Management
         Nonprofits assist in immediate information gathering.
         Nonprofits serve as a local face and may garner more trust
    than government representatives.
         Nonprofits can become a one-stop-shop for resources for
    individuals.
                Data Sharing and Case Management
         Data sharing does not exist on a big enough level. There
    should standard templates, policies, procedures and guidelines in
    place.
         Data sharing system should be implemented to avoid
    duplicate of benefits (DOB) issues and unmet needs.
         A standard reporting sheet should be used so information
    does not have to be collected later on.
         A flowchart for the impacted individual on where to go and
    what to do first would make data collection easier.
                Unmet Needs Program
         There is a need to have a universal agreement with stores
    ahead of time.
         A transition plan should be in place to determine what
    transitioning out will look like and how to accomplish it.

        Mr. Loebsack. I would ask that the Committee give specific
    attention to these issues and ensure both the Department of
    Housing and Urban Development and the Federal Emergency
    Management Agency along with the Department of Homeland
    Security have the resources necessary to continue pursuing this
    effort and the activities of the Long-Term Disaster Recovery
    Working Group.
        Thank you, Madam Chair, for the opportunity to testify
    today and I look forward to working with you in the future and
    this Committee to enact the common-sense reforms proposed by
    states like Iowa to the nation's disaster recovery policies.
    Thank you.
        [The prepared statement of Dave Loebsack follows:]

    Prepared Statement of Hon. David Loebsack, a Representative in Congress
                           From the State of Arizona

        I want to thank the Chairman and Ranking Member for the opportunity
    to testify on the Fiscal Year 2011 Budget. This will certainly be a
    difficult budget year and I applaud the Committee's and
    Administration's commitment to a balanced budget, fiscal
    responsibility, and important ``Pay as You Go'' rules.
        Through its Budget Request, the Administration has taken the first
    step toward reigning in spending, reducing the deficit, and addressing
    our long term fiscal health by proposing a spending freeze,
    implementing cost saving measures for the federal government, and
    eliminating redundant and wasteful federal spending. While these
    proposals are just first steps, they are an important jump-start to
    what should be a concerted effort by Congress and the Administration to
    bring the runaway deficit under control.
        Last year I testified about the importance of actually budgeting
    for disasters and disaster relief costs. I am pleased that in the FY11
    proposal from the President he continues his commitment to honesty in
    the budget by accounting for estimated disaster response and relief
    costs.
        Honesty in the budget is a crucial step toward responsible spending
    and deficit reduction. Just as an Iowa family would not honestly omit a
    cost they know they will face in the future from their household
    budget; neither should the federal government pretend that natural
    disasters won't affect the American people.
        I come today to testify, like last year, about an effort relating
    to disaster response and recovery; specifically, the Long-Term Disaster
    Recovery Working Group.
        The Working Group was formed by the President on September 29, 2009
    and is chaired by the Secretaries of Homeland Security and HUD. The
    purpose of the Working Group is to gather input nationwide from
    disaster-affected communities and states, other stakeholders, emergency
    managers, first responders, non-profits, and private organizations in
    order to formulate recommendations to improve our nation's disaster
    response and recovery system.
        In January, I was pleased to be able to host, along with HUD and
    the Rebuild Iowa Office, the Iowa Disaster Recovery Learning Conference
    at the Kirkwood Center for Continuing Education in Cedar Rapids, Iowa.
        This conference was part of the Working Group's national outreach
    effort, and while I wish Iowa didn't have reason to participate, the
    conference was productive and brought together a wide variety of
    stakeholders throughout Iowa and produced common sense suggestions and
    ideas for reform.
        During the summer of 2008, the State of Iowa experienced the worst
    natural disaster in our history. I want to thank my colleagues for
    working with me last Congress to approve two disaster recovery funding
    bills and a tax assistance package.
        My Congressional District had arguably the largest amount of damage
    from the floods and includes Iowa's second largest city, Cedar Rapids,
    which sustained severe damage along with numerous other cities such as
    Iowa City, Palo, and Oakville.
        As Iowans continue to recover, we had a unique opportunity to share
    what worked, what didn't, how Iowans and the federal government worked
    together, and how the federal government could be a better partner in
    the recovery and response process.
        After the Floods of 2008, I began advocating and bringing attention
    to the need for disaster policy reforms. I will continue to advocate
    for reforms and Iowa's disaster recovery needs and would like to enter
    for the record the common sense recommendations and best practices
    developed at the Iowa Disaster Recovery Learning Conference. I am also
    sending this information to other relevant House Committees.
        I would ask that the Committee give specific attention to these
    issues and ensure both the Department of Housing and Urban Development
    and the Federal Emergency Management Agency, along with the Department
    of Homeland Security, have the resources necessary to continue pursuing
    this effort and the activities of the Long-Term Disaster Recovery
    Working Group.
        Thank you for the opportunity to testify today and I look forward
    to working with you in the future to enact the common sense reforms
    proposed by states like Iowa to the nation's disaster recovery
    policies.

        Ms. McCollum. Thank you, Representative Loebsack, for your
    ideas and suggestions on emergency disaster relief and the
    budget.
        The Chair now recognizes the gentleman from Florida,
    Representative Klein.

    STATEMENT OF HON. RON KLEIN, A REPRESENTATIVE IN CONGRESS FROM
                          THE STATE OF FLORIDA

        Mr. Klein. Thank you, Madam Chair.
        I appreciate the opportunity for you and this Committee to
    listen to the members and to take the ideas that we are hearing
    from our constituents as we testify before the Budget Committee
    today. I am honored to be here with you and I look forward to
    working with all of you as we move through this process.
        And as I was sitting here waiting to testify, I just
    noticed that these name cards have Office Depot, one of the
    main businesses in my community. Office Depot along with a lot
    of our small businesses are the kinds of businesses that are
    helping engineer our recovery.
        And I just want to acknowledge not only that business, but
    a lot of other local small businesses because as we are working
    through this budget, this budget is going to be all about the
    plans and the architecture for getting small businesses, which
    are the engine to our whole economy, back on track.
        Madam Chair, we recently experienced the worst financial
    downturn since the Great Depression and it is going to take a
    serious effort not only by Congress, but the public and private
    sector to get our economy back on track.
        Unemployment remains unacceptably high and serious problems
    remain in the residential mortgage and commercial real estate
    markets. Small businesses, as we know, are struggling to access
    credit on reasonable terms. And I personally have spent a lot
    of time in my district and here working on getting banks to
    apply prudent standards, but make capital available for our
    small businesses.
        We are fortunately seeing signs of economic recovery with
    the Gross Domestic Product increasing even more than we
    expected in the fourth quarter, very positive numbers, and it
    is not going to be easy, but we know that America will recover
    from this economic slump and, most importantly, we have to use
    this moment as a time to craft plans how we can make our
    economy stronger than ever over the next number of years.
        Emergency measures were taken last year by this Congress to
    prevent the current collapse or the complete collapse of our
    financial system, and these policy responses were essential to
    planning for a successful economic recovery. However, as the
    economy continues to grow more and more and Americans are able
    to go back to work, we must turn our attention to reducing
    long-term budget deficits and reducing our national debt.
        In south Florida, we know that tough times mean tightening
    our belts. Times like this require cutting back. This applies
    to our personal family budgets, our businesses, and our
    government. No exceptions.
        Unfortunately, some in Washington missed that memo. For
    years, spending has been out of control and it is time for all
    of us to take real steps to reduce our deficit.
        As a state legislator in Florida, I participated in the
    balanced budget process for 14 consecutive years and I have
    been and will continue to fight to bring that kind of fiscal
    discipline to Washington as we begin to come out of this
    downturn.
        My parents were a public school teacher, my mom, and my dad
    was a small business owner. He had a variety store. Many of you
    might remember what variety stores were.
        My wife and I passed the lesson on the value of the dollar,
    that my parents taught me, on to our children. Like so many in
    our community, we teach our kids you have to live within your
    means. If you cannot afford something, you cannot buy it. It is
    as simple as that.
        Well, it is time that we heed that advice in Washington as
    well. And that is why I am particularly pleased that something
    that I have been working on, along with many of you, passed
    recently and that is PAYGO legislation. The President signed it
    a week ago.
        PAYGO says that Congress can only create new programs that
    are fully paid for and do not increase the deficit. I have
    supported the passage of this legislation since I arrived in
    Congress and I am glad it is finally the law.
        We know that PAYGO works. It was in place in the 1990s and
    we saw budget surpluses. We had a deficit to start with and
    over that decade, we made that a surplus, we as Americans. When
    it was abandoned in 2000, our deficit exploded over the last
    number of years. That cannot and will not be the case anymore
    as we have now passed PAYGO.
        Now, this is a good first step to rein in our budget, but
    there must be more. Government programs that are not serving
    the American people cost us billions of dollars a year. We need
    to review the budget line by line and squeeze out every
    possible penny of savings, including cutting programs that are
    not working or that duplicate each other.
        Further, I am introducing legislation that puts us on a
    path to fiscal responsibility and balanced budgets. My bill,
    Madam Chair, will require Congress to reduce spending each year
    until the budget is balanced, laying out a clear road map to
    getting our deficit under control.
        Specifically my legislation will require the Budget
    Committee to include a detailed benchmark plan to eliminate the
    budget deficit by 2020 in the current budget resolution,
    including reconciliation instructions to committees as
    necessary to carry out the plan.
        After the road map is established, each subsequent budget
    resolution must meet the goals laid out by the Budget Committee
    to reduce the deficit. If future budget resolutions do not meet
    the benchmarks, then it would not be in order to consider the
    budget resolution in either the House or the Senate except for
    times of economic emergency or war.
        To balance our budget, we will have to make tough choices.
    Putting this road map into place and including enforceable
    points of order will require Congress to decide what priorities
    are most important just like families in south Florida and
    around the country do every day.
        Madam Chair, working together, I really believe we can
    ensure our government continues to meet its commitments and
    provides a foundation for economic growth while protecting
    Medicare, Social Security, and other vital programs.
        We have many opportunities ahead to strengthen our great
    country and I look forward to working with you, Madam Chair,
    our colleagues in the Congress, and the President to ensure
    that we keep our fiscal house in order. And I thank you very
    much for the time.
        [The prepared statement of Ron Klein follows:]

    Prepared Statement of Hon. Ron Klein, a Representative in Congress From
                              the State of Florida

        Thank you, Mr. Chairman, for inviting me to testify before the
    Budget Committee today. I am honored to be here with you, and I look
    forward to working with you as we move forward in this process.
        We recently experienced the worst financial downturn since the
    Great Depression, and it will take a serious effort to get our economy
    back on track. Unemployment remains unacceptably high, and serious
    problems remain in the residential mortgage and commercial real estate
    markets. Small businesses are still struggling to access credit on
    reasonable terms. Yet we are starting to see signs of economic
    recovery, with GDP increasing even more than expected in the fourth
    quarter of 2009. It will not be easy, but America will recover from
    this economic slump and continue to grow until our economy is stronger
    than ever.
        Emergency measures were taken by this Congress to prevent the
    complete collapse of our financial system, and these policy responses
    were essential to ensuring a successful economic recovery. However, as
    the economy continues to grow and more and more Americans are able to
    get back to work, we must turn our attention to reducing long-term
    budget deficits and lowering our national debt.
        In South Florida, we know that tough times mean tightening our
    belts. Times like these require cutting back. This applies to our
    family budgets, our businesses and our government. Unfortunately, some
    in Washington missed that memo. For years, spending has been out of
    control, and it's time for real solutions to reduce our deficit. As a
    state legislator, I participated in a balanced-budget process for 14
    years. I have been and will continue fighting to bring that kind of
    fiscal discipline to Washington.
        My parents, a public school teacher and small business owner,
    taught me early on the value of a dollar. My wife and I passed that
    lesson on to our children. Like so many in our community, we teach our
    kids that you have to live within your means. If you can't afford
    something, you can't buy it.
        It is time that we heed this advice in Washington. That is why I am
    pleased that the President recently signed PAYGO legislation into law.
    PAYGO says that Congress can only create new programs that are fully
    paid for and do not increase the deficit. I have supported the passage
    of this legislation since I arrived in Congress and I am glad that it
    is finally the law. We know PAYGO works. When it was in place in the
    1990s, we saw budget surpluses. When it was abandoned in 2000, our
    deficit exploded. That cannot and will not be the case anymore.
        This is a good first step to reign in our budget deficits, but more
    must be done. Government programs that aren't serving the American
    people cost us billions of dollars a year. We need to review the budget
    line by line and squeeze out every possible penny of savings, including
    cutting programs that aren't working or that duplicate each other.
        Further, I am introducing legislation that puts us on a path to
    fiscal responsibility and balanced budgets. My bill will require
    Congress to reduce spending each year until the budget is balanced,
    laying out a clear roadmap to getting our deficit under control.
        Specifically, my legislation will require the Budget Committee to
    include a detailed benchmark plan to eliminate the budget deficit by
    2020 in the current budget resolution, including reconciliation
    instructions to committees as necessary to carry out the plan. After
    the roadmap has been established, each subsequent budget resolution
    must meet the goals laid out by the Budget Committee to reduce the
    deficit. If future budget resolutions do not meet the benchmarks for
    deficit reduction, then it would not be in order to consider that
    budget resolution in either the House or the Senate, with some
    exceptions for times of economic emergency.
        To balance our budget, we will have to make tough choices. Putting
    this roadmap into place, and including enforceable points of order,
    will require Congress to decide what priorities are most important,
    just like families in South Florida and around the country do every
    day. Working together, we can ensure that our government continues to
    meet its commitments and provides the foundation for economic growth
    while protecting Medicare, Social Security, and other vital government
    programs. We have many opportunities ahead to strengthen our great
    country, and I look forward to working with you, Mr. Chairman, our
    colleagues in the Congress and the President, to ensure that we keep
    our fiscal house in order.

        Ms. McCollum. I thank the gentleman from Florida for his
    ideas to the Committee on how to have fiscal responsibility.
        At this time, this Chair yields the gavel to the gentleman
    from Washington, Mr. Larsen.
        Mr. Larsen [presiding]. The Chair now recognizes the
    gentleman from South Carolina, Mr. Inglis.

    STATEMENT OF HON. BOB INGLIS, A REPRESENTATIVE IN CONGRESS FROM
                      THE STATE OF SOUTH CAROLINA

        Mr. Inglis. I thank the Chair.
        And, Mr. Chairman, I am here to suggest that leadership
    aimed at consensus, plus a crisis, equals change. We have the
    crisis. The question is whether we have leadership aimed at
    consensus. And I think that we are at a historic point where
    perhaps the American people will lead us in Congress to these
    solutions.
        And so what I am here to suggest, Mr. Chairman, is that
    when the federal budget is such that tax receipts only cover
    mandatory spending last year and projected for this year, that
    all tax receipts will only be sufficient to cover Medicare,
    Medicaid, Social Security, and interest on the debt, everything
    else will be borrowing, that that is a sufficient crisis for
    action.
        So if we have leadership and a consensus plus a crisis, we
    can get change. But we have the crisis. The question is whether
    we have leadership aimed at consensus.
        And I am wondering whether this point in our history is a
    unique point where the general interest of the public in
    getting the deficit under control and in paying down the debt
    is beginning to overwhelm the special interests of the few in
    an earmark here, for a private purpose here or there, or a
    special tax loophole here or there, and that this is a truly
    unique moment where people are rising up and they are demanding
    of the Congress that we get the situation under control.
        So what I am here to suggest is that we seize the moment
    and really put forward some bold plans. This week I am excited
    to be a co-sponsor of Representative Ryan's Road Map for
    America's Future. It is a very bold plan.
        And perhaps there is some on the Democratic side of the
    aisle that do not like it, that think it goes too far, but if
    that is the case, what we should expect from those on the other
    side of the aisle is to give us their ideas.
        And we must come together and solve this challenge because
    the American people have figured it out. They know that we can
    go the way of Greece, we can go the way of Argentina, we can
    end up in a place of hyperinflation.
        So what we must do is get our fiscal house in order and the
    way to do that is to make some bold moves. Typically members of
    Congress are afraid that their people will not understand the
    need to make bold changes. But as I said, Mr. Chairman, I think
    that this is a unique time when people are actually realizing
    the great risk that we have and they expect some serious
    action.
        So if I am correct that right now the general interest is
    starting to overwhelm the special interest, then this is a
    perfect time to act, to propose some solutions. The Road Map
    for America's Future is a solution that I am comfortable with.
    There are some things in there that obviously would be changed,
    but the general direction of it is to make significant changes
    to entitlement spending.
        You all remember in the debate in 2008, one of the
    Presidential debates, John McCain was asked what he would do to
    balance the budget and he came up with something about
    earmarks. Barack Obama really had nothing to say about how he
    would balance the budget.
        And Afterwards George Worrell pointed out that it was
    rounding error in the federal budget to speak of entitlements.
    And George Worrell said unless you are speaking of Medicare,
    Medicaid, and Social Security, you are not talking about
    balancing the budget.
        So our challenge here is to have the courage to talk about
    those things. But what I am here to suggest is that right now
    is the time because people are rising up expressing the general
    interest and saying that they really want to see us get the
    deficit under control and pay down the debt, that that is the
    moment to act.
        Leadership aimed at consensus plus a crisis equals change.
    We have got the crisis. The question is whether we can get
    leadership aimed at consensus. I am comfortable putting forth
    the Road Map for America's Future with Paul Ryan. I hope that
    from the other side, we will hear some ideas and we must come
    together and figure out a way to solve this American challenge.
        Thank you for the opportunity to appear before you, Mr.
    Chairman.
        [The prepared statement of Bob Inglis follows:]

      Prepared Statement of Hon. Bob Inglis, a Representative in Congress
                        From the State of South Carolina

        Chairman Spratt and Ranking Member Ryan, thank you for giving me
    the opportunity to testify about the Budget Resolution for Fiscal Year
    2011.
        In the past, we in Congress would make speeches about our long-term
    entitlement challenges. We spoke about the need to keep Social Security
    and Medicare solvent, even as some proposed adding more seats to the
    sinking ship. This year, we've passed a new marker that should serve as
    a wake up call to the Congress.
        According to the Office of Management and Budget, in 2009,
    mandatory federal spending exceeded total federal receipts for the
    first time. Consider that for a moment. In 2009, the federal government
    spent more on Social Security, Medicare, Medicaid and other mandatory
    programs than it took in through taxes. Everything else in the budget,
    including defense spending, was paid for with borrowed money. Our
    constituents get it, and they're trying to send us a message: stop the
    spending.
        There is a reason that we so rarely balance our budgets. No matter
    who is in power, regardless of party, the special interests have
    outweighed the general interest.
        But something has changed. Faced with the economic challenges of
    the last two years, Americans have had to tighten their belts; they've
    been confronted with the dangers and consequences of living on credit.
    But when they look at their government they don't see those same
    consequences. Instead they see the same old reckless spending and
    borrowing, and they're outraged.
        Today the American people see the danger of continuing on our
    current path and are demanding a change in course. They want us to cut
    spending, and grow the economy so that we can put out nation on a
    sustainable path forward. For once, the general interest is starting to
    outweigh the special interests. We have before us a unique opportunity,
    one that may not come again, to radically transform the way we budget,
    tax, and spend.
        This week I became a cosponsor of Ranking Member Ryan's Road Map
    for America's Future Act, and I believe that proposal holds great
    promise as a way forward. But whatever the path we take, we need to
    agree on this: now is the time to tackle these tough challenges and
    provide future generations with a government that lives within its
    means.
        Thank you.

        Mr. Larsen. Thank you, Mr. Inglis.
        Would you be willing to entertain a question or two?
        Mr. Inglis. Sure.
        Mr. Larsen. Just to clarify, and this is for the record and
    without any prejudice one way or the other towards the concept
    of earmarks. I think you quoted Mr. Worrell as saying it was a
    rounding error to talk of entitlements. Perhaps you meant to
    say a rounding error to talk of earmarks.
        Mr. Inglis. Absolutely, yes. Yes. It is a rounding error to
    speak of entitlements as a way of balancing the budget. Of
    course, it is an important marker of our devotion to balancing
    the budget. But, yeah, the big ones, of course, Medicare,
    Medicaid, Social Security, and those are the ones we have go
    to----
        Mr. Larsen. A rounding error just to talk of earmarks?
        Mr. Inglis. Right.
        Mr. Larsen. Right? Okay. All right, sir.
        And just as a second point, I think generally there are
    many folks on both sides of the aisle who do want to come
    together and solve these larger issues and we have different
    ways of getting at it and perhaps different conditions to
    getting to the table itself, but perhaps approaching the table
    without conditions is perhaps the best way to get started on
    this.
        Mr. Inglis. Yeah. And to control our rhetoric, I think. You
    know, I was here for six years and I was gone six years, came
    back in 2004. And I left and had an unfortunate experience in a
    U.S. Senate race.
        But in that race, what was thrown up to me was, Bob Inglis,
    why were you voting to cut old people's benefits and starve
    school children and all the normal canards that really come
    from the Democratic side of the aisle. Those are the things we
    need to leave aside.
        We need to say, listen, if we are going to--we all have a
    big problem. It is called entitlement spending and we have got
    to get it under control.
        And so if somebody has the courage to step forward, mostly
    because in listening to the American people and listening to
    the determination that I am hearing in my district, now really
    this is the time to act, do something.
        If you then step forward based on that commitment and what
    you are hearing from your people, then it is best if the other
    side does not then start doing things about starving school
    children and all that kind of stuff because the reality is
    nobody wants to starve school children and nobody wants to put
    seniors on the street. But we do need to figure out a way to
    make Medicare sustainable, Medicaid sustainable, Social
    Security sustainable. And so it is important that we come
    together.
        Mr. Larsen. Before I let you go, I just would note that
    some would say that--you said you had an unfortunate experience
    in the U.S. Senate race--some would argue that regardless of
    the outcome of the U.S. Senate race, it is an unfortunate
    experience.
        Having said that, thank you very much for your testimony to
    the Committee.
        Mr. Inglis. Thanks for the opportunity to be here.
        Mr. Larsen. Sure.
        Without objection, the Committee will stand in recess
    subject to the call of the Chair.
        [Recess.]
        Mr. Larsen. Back in order for Members' Day testimony.
        The Chair now recognizes the gentleman from North Dakota,
    Mr. Pomeroy.

     STATEMENT OF HON. EARL POMEROY, A REPRESENTATIVE IN CONGRESS
                     FROM THE STATE OF NORTH DAKOTA

        Mr. Pomeroy. I thank the Chair and apologize for the
    portion of the recess that my delayed appearance here
    represents. I was taking in the first part of the Memorial
    Service for our fallen colleague, Jack Murtha. I know we will
    want to remember him and his family in our prayers.
        I would like to thank you for the opportunity to submit
    testimony to the Committee.
        I want to specifically urge this Committee to exclude from
    the House budget resolution proposals under discussion to fund
    the Environmental Protection Agency's efforts to implement
    regulations on greenhouse gas emissions as well as this budget
    should, I believe, strike budget proposals that eliminate tax
    incentives, vital tax incentives for the oil and gas industry.
        I have become increasingly concerned by the steps that the
    EPA has taken in recent months to regulate greenhouse gas
    emissions under the Clean Air Act. The Clean Air Act was passed
    the early part of the last decade for purposes of dealing with
    acid rain, principally smog and acid rain.
        Well, the Supreme Court ruled that the Clean Air Act can
    indeed provide basis for this agency to move forward with a
    whole slate of regulations on greenhouse gas emissions,
    something that was not contemplated in the drafting of the
    statute and does not produce an appropriate resolution for this
    country.
        The EPA is expected to soon finalize a rule to regulate the
    greenhouse gas emissions from light-duty vehicles. What
    concerns me in particular is not the light-duty vehicles, the
    mobile source regulations that would extend from the agency,
    but the subsequent triggering of regulatory reach to stationary
    sources that emit greenhouse gases such as power plants and
    factories for regulation.
        In anticipation of this outcome, the EPA has announced a
    proposed rule requiring large industrial facilities and power
    plants to obtain construction operating permits covering their
    emissions. These programs would require facilities to
    demonstrate the use of best available control technology and
    energy efficiency measures to minimize greenhouse gas
    emissions. The President's fiscal year 2011 budget proposes to
    provide more than $50 million to develop and implement these
    regulations.
        I believe that these regulations are ill conceived
    fundamentally because they are based on a statute that was
    initially enacted to address an entirely different range of
    issues. I believe that Congress should take the authorizing
    step of putting in place a statute relative to greenhouse gas
    emissions before agency activity moves forward.
        Again, the Supreme Court has held that greenhouse gas
    emissions can move forward under the Clean Air Act, but
    Congress ultimately is the ultimate decider of the basis by
    which this agency acts. And by dealing with this in the budget
    and appropriation process, we can prohibit the agency from
    acting under the wrong statute until the right statute is put
    into place.
        Our nation's energy sector is the heart of everything we
    do, provides the gas that fuels our cars, electricity that
    turns on our lights, and the fuel that heats our home.
        In North Dakota and many parts of the country, the energy
    sector is a primary engine that has kept our economy strong
    while the rest of the country has struggled.
        The current Clean Air Act was not developed for greenhouse
    gas emissions and it does not work to try and shoehorn
    greenhouse gas emissions into this statute.
        The obvious potential, a lawsuit that will result from
    EPA's proposed rule relates to changing the regulatory
    threshold for stationary sources. I think we would all agree
    the thresholds in current law are completely unworkable for
    greenhouse gases.
        There are significant questions as to whether EPA has the
    authority to change this threshold for purposes of attaching
    their regulatory reach. If it is found that they do not have
    the authority, we could be looking at potentially millions of
    stationary sources now requiring review.
        There are also significant concerns over the availability
    of technology to meet regulations. Under the proposed rule, the
    EPA can force an emitter to install a Best Available Control
    Technology that is known by the acronym BACT.
        In the early years of this program and for the foreseeable
    future, it is unclear what EPA would consider BACT compliant.
    As of yet, no commercially available technology for many
    existing sources and technologies for new plants that are
    either unproven or incredibly expensive.
        I am wondering about the jobs this summer in the coal
    generating facilities found in the plains of North Dakota.
    Normally you would have the utilities or the co-ops making
    decisions to do their annual plant upgrades. This has the
    positive effect of lowering emissions and keeping the plant at
    best operating standard.
        What will be placed in question this summer is whether or
    not that kind of investment will even be made because it will
    not know whether or not it will pass muster with rules yet to
    be promulgated by the EPA on best available control technology.
        I think we could lose jobs. We could lose jobs as early as
    this summer and freeze everything in place in terms of plant
    maintenance, a very unfortunate result.
        Now, should Congress ever institute a greenhouse gas
    regulation law, and I believe it will, it is likely to include
    substantial flexibility that will recognize economic concerns
    or create sensitive concerns and other issues that come to the
    floor in the legislative process and are appropriately
    considered as part of an enactment.
        Now, the EPA does not have this reach and this look as they
    move their regulation forward. That, again, is why we need to
    put the statute in place first before the regulation.
        For these reasons, I believe it is critical that Congress
    prevent the regulations and stop the cart from being put in
    front of the horse. Let us prevent the regulations from being
    implemented.
        I have introduced legislation, Save our Energy Jobs Act,
    H.R. 4396, that would remove the current authority to implement
    the regulations under that Supreme Court ruling until Congress
    puts the statute in place.
        Now, just in my final moment, Mr. Chairman, to the
    Committee today, I would like to discuss proposals to eliminate
    tax incentives for fossil fuels.
        Domestic oil and gas development is critical to America's
    economic and strategic future and the majority of this
    development is currently being undertaken by independent
    producers, the very producers who will be hit hardest by the
    elimination of these tax incentives.
        These independent producers come into North Dakota, develop
    technologies that can recover what is now estimated four
    billion barrels of oil, completely changing the economic
    outlook for North Dakota, but making a substantial change also
    in what we think can be contributed to domestic energy needs.
        A primary example, 115,000 barrels per day moving to now
    more than 240,000 barrels per day just in the last two years
    alone.
        As is the case with most new domestic sources of oil and
    gas, this development is not cheap. The new wells which go two
    miles down and then horizontally two miles cost several
    millions of dollars from lease to completion and the majority
    again of the companies picking these up are independent
    producers. They depend upon the existing tax structure which
    has basically allowed the financing of this extraordinary
    capital requirement to develop these oil fields.
        Now, unless we are going to risk busting up the search for
    new domestic sources of fossil fuel, I believe that we need to
    keep these into place. And I would urge that as you put your
    budget together, you reject those budget proposals submitted by
    the Administration.
        Thank you for your kind attention and I value the
    opportunity to put this into the record. Thank you.
        [The prepared statement of Earl Pomeroy follows:]

     Prepared Statement of Hon. Earl Pomeroy, a Representative in Congress
                         From the State of North Dakota

        Chairman Spratt and Ranking Member Ryan, I would like to thank you
    for the opportunity to testify before the committee today regarding the
    Budget Resolution for fiscal year 2011. In particular, I urge you to
    not include in the House Budget Resolution proposals under discussion
    to fund the Environmental Protection Agency's efforts to implement
    regulations on greenhouse gas emissions and to eliminate tax incentives
    for the oil and gas industry.
        I have become increasingly concerned by the steps that the
    Environmental Protection Agency (EPA) has taken in recent months to
    regulate greenhouse gas emissions under the Clean Air Act, a bill
    actually intended by Congress to primarily regulate smog and acid rain.
    In fact, the EPA is expected to soon finalize a rule to regulate
    greenhouse gas emissions from light-duty vehicles under the Clean Air
    Act which would subsequently subject stationary sources that emit
    greenhouse gases, such as power plants and factories, to regulation. In
    anticipation of this outcome, the EPA has announced a proposed rule
    requiring large industrial facilities and power plants to obtain
    construction and operating permits covering their emissions. These
    permits would require facilities to demonstrate the use of best
    available control technologies and energy efficiency measures to
    minimize greenhouse gas emissions. The President's Fiscal Year 2011
    Budget proposes to provide more than $50 million to develop and
    implement these regulations. I believe that these regulations are ill-
    conceived and urge the Committee to not provide any consideration for
    their implementation within Congress's Fiscal Year 2011 Budget.
        Our nation's energy sector is at the heart of everything we do--it
    provides the gas that fuels our cars, the electricity that turns on the
    lights, and the fuel that heats our homes. In North Dakota and many
    other parts of the country, the energy sector is the primary engine
    that has kept our economy strong while the rest of the country has
    struggled with the economic crisis. The current Clean Air Act was
    developed for significantly different purposes than regulating
    greenhouse gases. If we shoehorn the regulation of greenhouse gases
    into these existing regulatory structures we will almost certainly see
    a tremendous amount of litigation and costs around the implementation
    of these rules.
        One obvious potential lawsuit that will certainly result from the
    EPA's proposed rule relates to changing the regulatory threshold for
    stationary sources. While I think we would all agree that the
    thresholds in current law are completely unworkable for greenhouse
    gases, there are significant questions as to whether EPA has the
    authority to make this change. If it is found that the EPA does not
    have this authority we could be looking at millions of potential
    sources that would be regulated including small business, family farms
    and even some homes.
        There are also significant concerns over the availability of
    technology to meet regulations. Under the proposed permitting
    requirements the EPA can force an emitter to install a Best Available
    Control Technology (BACT) to meet emissions. In the early years of this
    program and for the foreseeable future it is unclear what EPA would
    consider a BACT as there is as of yet no commercially available
    technology for many existing sources and technologies for new plants
    are either unproven or incredibly expensive.
        This could have the effect of increasing energy costs dramatically
    in a short period of time, driving employers out of business and
    costing jobs. This is especially dangerous for energy intensive places
    like North Dakota. Significant portions of our population live on a
    fixed income and rely on electricity to heat their homes during our
    cold winters. The Clean Air Act does not provide a mechanism to assist
    individuals and businesses with increased costs caused by regulations.
    These costs will inevitably be passed along to consumers forcing low
    income families to face the difficult decision between heating their
    homes, buying food or paying for critical medicines.
        Should Congress ever institute a greenhouse gas regulation law, it
    is likely to include substantial flexibility to address economic
    concerns of trade sensitive industries and to mitigate the effects of
    the policy on end energy users. With the current EPA proposal there is
    no such flexibility.
        For these reasons I believe that it is critical that Congress act
    to prevent these regulations from being implemented. To that end I have
    introduced H.R. 4396, the Save Our Energy Jobs Act Legislation to
    remove EPA's current authority to implement these regulations,
    restoring that authority to Congress where it belongs. In addition, I
    urge the committee to not provide for the implementation of these
    regulations within the House Budget.
        I would like to use my remaining time to discuss the proposals to
    eliminate tax incentives for fossil fuels. Domestic oil and gas
    development is critical to America's economic and strategic future and
    the majority of this development is currently being undertaken by
    independent producers, the very producers who will be hit hardest by
    the elimination of these tax incentives.
        A prime example of how the oil and gas industry can be an engine
    for economic growth can be seen in North Dakota. While many other
    states around the country have been facing high unemployment rates and
    budget deficits, North Dakota has the country's lowest unemployment
    rate at 4.4 percent and has a budget surplus of nearly $1 billion. Much
    of this success can be attributed to the remarkable development of the
    Bakken oil formation in North Dakota. Since the beginning of 2007
    production has soared from 115,000 barrels per day to more than 240,000
    barrels per day at the end of 2009, making North Dakota the 4th largest
    oil producing state, up from 9th just 3 short years ago. This has
    provided an ample source of jobs and tax revenue back to the state.
        As is the case with most new domestic sources of oil and gas this
    development is not cheap. New wells in the Bakken cost several million
    dollars from lease to completion, with the majority of the companies
    drilling these wells being independent producers. These companies do
    not have the large sums of capital available to them that major
    integrated producers have. The ending of tax incentives, such as the
    expensing of Intangible Drilling Costs, will have the greatest effect
    on these producers who will be forced to spend capital on their tax
    liabilities rather than new wells. This will lead directly to less
    domestically produced oil, increased dependence on foreign oil and
    higher oil costs in general. It is critically important that the United
    States continue to explore for and develop its domestic energy
    resources. Inclusion of proposals to eliminate tax incentives for oil
    and gas, however would have a significant impact on that development
    and I would ask that they not be included in the House Budget.
        Mr. Chairman, I would again like to thank you for the opportunity
    to appear before your committee today to express a few of my priorities
    for the Fiscal Year 2011 House Budget Resolution. It is critical that
    Congress work to ensure that the United States maintain an energy
    policy that will incentivize new sources of domestic energy and does
    not place undo burdens on its citizens and businesses. Budget proposals
    that call for unrestrained regulation of industry and increased taxes
    on development of domestic resources would have the exact opposite
    effect. Thank you.

        Mr. Schrader [presiding]. Thank you, Mr. Pomeroy, and thank
    you for your advocacy on behalf of your State of North Dakota.
        The Chair now recognizes the gentleman from California, Mr.
    Sherman.

     STATEMENT OF HON. BRAD SHERMAN, A REPRESENTATIVE IN CONGRESS
                      FROM THE STATE OF CALIFORNIA

        Mr. Sherman. Thank you, Mr. Chairman.
        I will be brief, so the staff should be on the phones
    trying to get your next entertainer, excuse me, Member of
    Congress here to make a presentation.
        I come here to support the land acquisition activity in the
    President's budget and perhaps to urge you to even expand it.
    The national parks are important, particularly in a time of
    recession, first because families need to get outdoors, whether
    it be for a day trip or for a vacation that they can afford
    even when they are cutting back. And our national parks provide
    that.
        Second to preserve our environment, there is nothing more
    important than the National Park System. Our National Park
    System not only needs to be operated, it needs to add
    additional land within the existing borders of our national
    parks and national recreation areas.
        I am particularly here to focus on the Santa Monica
    Mountains National Recreational Area. The Los Angeles
    Megalopolis is under-parked in terms of the amount of parkland
    we have in the region, but we are blessed that right at the
    fringes of our region, we have a unit of the National Park
    Service, namely the Santa Monica Mountains National Recreation
    Area, which is visited by some 33 million people a year,
    visiting both the mountains and the beaches contained within
    its borders. This means that it is by far the most visited unit
    of the National Park System and, yet, much of the land has not
    been acquired and you have a patchwork of state and federal and
    private land within its borders.
        Critical to the park meeting its needs are the acquisition
    of the Zuma/Trancas Canyon watersheds. The President's budget
    provides $3.75 million to acquire 16 tracts totaling 286 acres
    of core habitat in these canyons. The total cost of acquiring
    all the relevant land would be $6 million and would include 28
    parcels. The owners have expressed a willingness to sell to the
    National Park Service subject to negotiation of the price.
        So I would hope that you would preserve, and perhaps
    expand, the federal land acquisition activity in the budget and
    that within that activity, when you see the amount put forward
    for the Santa Monica Mountains, that you would at least
    preserve the $3.75 million and if I have been particularly
    persuasive, increase it has high as $6 million so that we can
    do the in-fill buying to preserve critical habitat and to build
    and preserve what is already the most visited unit of the
    National Park System.
        I do not know if you have any questions.
        [The prepared statement of Brad Sherman follows:]

     Prepared Statement of Hon. Brad Sherman, a Representative in Congress
                          From the State of California

        Mr. Chairman, thank you for the opportunity to convey my top
    priority for the Fiscal Year 2011 Budget. The Department of the
    Interior Fiscal Year 2011 Budget provides $3.75 million to acquire 16
    tracts totaling 286 acres to protect core habitat in Zuma/Trancas
    Canyons in the Santa Monica Mountains National Recreation Area. I
    strongly support the Administration's request and urge the Committee to
    include the request in the final Budget.
        The National Park Services ranks the preservation of Zuma/Trancas
    Canyons watersheds and coastal estuaries as the top priority for land
    acquisition in the Santa Monica Mountains. The Santa Monica Mountains
    National Recreation Area Land Protection Plan identifies 484 acres in
    the watersheds for acquisition by the National Park Service. This
    includes 28 legal parcels with an estimated fair market value of
    $6,000,000. The parcel owners have expressed a willingness to sell to
    the National Park Service subject to an agreeable value.
        The National Park Service has preserved approximately 6,500 acres
    or over 50 percent of the Zuma/Trancas Canyons watersheds, insuring
    their long-term preservation for public enjoyment. However, high-end
    real estate development on the remaining private in-holdings threatens
    to displace critical habitat and degrade park scenery and coastal water
    quality. Hiking trails within the canyons provide scenic views of the
    Pacific Ocean, numerous waterfalls, and natural solitude. This
    acquisition not only identifies critical open space for habitat
    protection, but it also seeks to secure critical recreational trail
    connections for the public. An additional $2.6 million will be required
    to purchase the remaining 198 acres of undeveloped parkland within
    Zuma/Trancas Canyons.
        Each year over 33 million visitors enjoy the Santa Monica Mountains
    National Recreation Area's world-renowned beaches and explore the
    park's mountains, including its 60-mile Backbone Trail, which stretches
    across the Santa Monica Mountains and traverses through Zuma/Trancas
    Canyons. To date, the National Park Service has acquired 22,000 acres
    of parkland using Land and Water Conservation Funds totaling $163
    million. The Santa Monica Mountains National Recreation Area has one of
    the largest backlogs of acquisition needs in the national park system.
    Approximately 20,595 acres remains to be acquired to complete the Land
    Protection Plan recommendations. The value of these lands is estimated
    to be over $57 million.
        Mr. Chairman, I urge the Committee to budget $3.75 million to
    acquire 286 acres of core habitat in Zuma/Trancas Canyons in the Santa
    Monica Mountains National Recreation Area. Thank you for this
    opportunity to convey my support for this important priority in the
    Fiscal Year 2011 Budget.

        Mr. Schrader. Do not, but I appreciate your advocacy on
    behalf of the Santa Monica area and the National Park System.
    Certainly excellent points and I would support that action.
    Thank you very much.
        Mr. Sherman. Thank you.
        Mr. Schrader. Next we will hear from Mr. Johnson from
    Georgia.

    STATEMENT OF HON. HENRY ``HANK'' JOHNSON, JR., A REPRESENTATIVE
                 IN CONGRESS FROM THE STATE OF GEORGIA

        Mr. Johnson. Thank you, Mr. Chairman, for holding this
    hearing today and giving me the opportunity to testify upon
    President Obama's fiscal year 2011 budget proposal.
        The spending decisions made in this budget will have a
    tremendous effect on the lives of my constituents and all
    Americans for many years to come.
        I am pleased that we have a presidential budget request
    that focuses on promoting economic recovery and makes the
    necessary investments so that constituents in George's Fourth
    District will have the opportunity for a better future.
        I strongly urge this Committee to give high priority to
    economic recovery and job creation, foreclosure prevention,
    viral hepatitis funding, justice programs to decrease
    recidivism, and transportation and infrastructure project
    funding that is very aggressive.
        We can all agree that the key to jump-starting our economy
    is to put Americans back to work. I share the President's goal
    of creating jobs for all Americans. Georgia's unemployment rate
    is 10.3 percent which is higher than the national unemployment
    average or the national unemployment rate which is 9.7 percent.
    Therefore, my priority is to preserve and to create new jobs.
        I applaud the President's budget request for $100 billion
    for a jobs package to spur economic growth. We need to continue
    to invest in programs that help laid off workers and their
    families receive the help they need until they can find a job.
    This is why I also supported President Obama's proposal to
    extend unemployment benefits and COBRA health insurance premium
    assistance.
        Foreclosure prevention programs are also necessary to
    facilitate economic recovery. Foreclosure rates remain at all-
    time highs and are up 15 percent from January 2009. I am deeply
    concerned about this issue as Georgia is among the top ten
    states with the highest foreclosure rates. More than 1,000
    homes are in the foreclosure process every month in my district
    and we need to do more to stem this tide.
        President Obama's fiscal year 2011 budget requests $88
    million for HUD to support home ownership and foreclosure
    prevention and $20 million to combat mortgage fraud.
        In addition, the President's budget requests $250 million
    for the Neighborhood Reinvestment Corporation's grant. Of that,
    $113 million is requested for foreclosure prevention activities
    which is a $48 million increase over the 2010 request.
        I applaud President Obama for investing in these
    foreclosure prevention programs.
        I value the health of my constituents also. Additional
    funding for viral hepatitis programs at the CDC is essential
    for battling hepatitis B and C. Three to five million people
    are projected to or, put it like this, three to five million
    people are currently infected with either the hepatitis B or
    the hepatitis C virus and do not know it.
        And many of those with respect to hepatitis C are
    approaching eligibility for Medicare because it is kind of a
    baby boomer type of phenomenon at this point, but the cost to
    society for treating liver cancer and, in fact, liver cancer
    cases, cases of liver cancer are among the fastest growing
    cancer rates in this nation.
        So it is very important that we bulk up the 19.5, I believe
    is the budget request for the CDC viral hepatitis program. And
    you can see viral hepatitis actually kills more people per year
    than does HIV. HIV funding is about $800 million per year
    versus the 19 for hepatitis B and C and a higher death rate for
    hepatitis C.
        So it is important that we develop a comprehensive viral
    hepatitis program to prevent new infections and control the
    spiraling cost of treating chronic infections.
        The President's fiscal year 2011 budget only requests $21.1
    million for these activities. Although this is a $1.8 million
    increase from the President's fiscal year 2010 request, it is
    still not enough. At least $50 million should be allocated to
    ensure that the CDC can adequately fund its viral hepatitis
    programs.
        And it is important that we do this so that the CDC can
    conduct the various studies that would be necessary in order to
    show that there is a real need for increased funding for
    prevention efforts, for educating healthcare providers, and
    others about how to stop the transmission of these viruses.
        I also urge the full funding of the Second Chance Act, the
    COPS Program and Byrne Justice Grant programs to combat crime
    and reduce recidivism.
        Furthermore, substantial funding is necessary for mass
    transit and infrastructure programs. Investing in mass
    transportation and infrastructure projects will create jobs,
    allow people who want to work, it will give them an option for
    getting to work and will ultimately revitalize our economy by
    creating jobs.
        Again, thank you for holding this hearing and giving me the
    opportunity to testify. And I yield back the balance of my
    time.
        [The prepared statement of Henry ``Hank'' Johnson follows:]

         Prepared Statement of Hon. Henry C. ``Hank'' Johnson, Jr., a
              Representative in Congress From the State of Georgia

        Thank you Chairman Spratt, and Ranking Member Ryan for holding this
    hearing today, and giving me the opportunity to testify upon President
    Obama's Fiscal Year 2011 Budget proposal.
        The spending decisions made in this budget will have a tremendous
    effect on the lives of my constituents and all Americans for many years
    to come.
        I am pleased that we have a presidential budget request that
    focuses upon promoting economic recovery and makes the necessary
    investments so that constituents in Georgia's Fourth Congressional
    District will have the opportunity for a better future.
        I strongly urge this Committee to give high priority to economic
    recovery and job creation, foreclosure prevention, viral hepatitis
    funding, justice programs to decrease recidivism, and transportation
    and infrastructure projects.
        We can all agree that the key to jumpstarting our economy is to put
    Americans back to work. I share the President's goal of creating jobs
    for all Americans. Georgia's unemployment rate is 10.3 percent, which
    is higher than the national unemployment rate of 9.7 percent.
    Therefore, my priority is to preserve and create jobs.
        I applaud the President's budget request of $100 billion for a jobs
    package to spur economic growth. We need to continue to invest in
    programs that help laid-off workers and their families receive the help
    they need until they find new jobs. This is why I also support
    President Obama's proposal to extend unemployment benefits and COBRA
    health insurance premium assistance.
        Foreclosure prevention programs are also necessary to facilitate
    economic recovery. Foreclosure rates remain at an all time high and are
    up 15 percent from January 2009. I am deeply concerned about this issue
    as Georgia is among the top ten states with the highest foreclosure
    rates. More than 1,000 homes are in the foreclosure process every month
    in my district, and we need to do more to stem the tide.
        President Obama's Fiscal Year 2011 Budget requests $88 million for
    HUD to support home ownership and foreclosure prevention and $20
    million to combat mortgage fraud. In addition, the President's Budget
    requests $250 million for the Neighborhood Reinvestment Corporation's
    grant. Of that, $113 million is requested for foreclosure prevention
    activities, which is a $48 million increase over the 2010 request. I
    applaud President Obama for investing in these foreclosure prevention
    programs.
        I value the health of my constituents, too. Additional funding for
    viral hepatitis programs at the CDC is essential for battling hepatitis
    B and C. Increased funding is critical in developing a comprehensive
    viral hepatitis program to prevent new infections and control the
    spiraling cost of treating chronic infections. The President's Fiscal
    Year 2011 Budget only requests $21.1 million for these activities.
    Although this is a $1.8 million increase from the President's fiscal
    Year 2010 request, it's still not enough. At least $50 million should
    be requested to ensure that the CDC can adequately fund its viral
    hepatitis programs.
        I also urge the full funding of the Second Chance Act, the COPS
    Program, and Bryne Justice Grant Program to combat crime and reduce
    recidivism.
        Furthermore, substantial funding is necessary for mass transit and
    infrastructure programs. Investing in mass transportation and
    infrastructure projects will create jobs, allow people who want to work
    an option for getting to work and will ultimately revitalize our
    economy by creating jobs.
        Again, thank you for holding this hearing and giving me the
    opportunity to testify. I yield back the balance of my time.

        Mr. Schrader. Thank you very much, Representative.
    Appreciate your testimony and your tireless advocacy for those
    in your district and this country. Thank you.
        Mr. Johnson. Thank you, Mr. Chairman.
        Mr. Schrader. Turn to the Honorable Congressman from New
    York, Mr. Eliot Engel.

      STATEMENT OF HON. ELIOT ENGEL, A REPRESENTATIVE IN CONGRESS
                       FROM THE STATE OF NEW YORK

        Mr. Engel. Thank you. Thank you very much for holding this
    hearing today and for the listening to us, I almost feel guilty
    making you sit through all this, but I do appreciate it. Thank
    you very, very much.
        I represent New York's 17th District, and that is the
    northern most part of New York City and the northern and
    western suburbs.
        What I would like to discuss is the need for increased
    funding to the Refugee School Impact Grant Program though the
    Office of Refugee Resettlement, Administration for Children &
    Families of the Department of Health & Human Services, and it
    involves Haiti and the earthquake in Haiti.
        I have a population of about 35,000 Haitians in my
    district, and obviously we are all aware of the devastation
    caused by the earthquake in Haiti, we have welcomed Haitian
    refugees, Haitian immigrants, and Haitian-Americans returning
    to the U.S., yet the influx of refugee children into our local
    schools is putting a devastating strain on school districts.
        The districts are already feeling their budgets are
    constrained, due to the severe recession we are experiencing,
    you add this on top of it, it is very, very difficult. I have
    heard this concern not only from my New York colleagues, but
    also my colleagues from South Florida, as well as other areas
    that have large numbers of Haitian-American population.
        It is estimated in New York that $15,536 is spent per pupil
    for overall education spending. Haitian refugee school children
    will also need more specialized support, requiring additional
    funds per pupil.
        The superintendent of the East Ramapo Central School
    District in Rockland County in my district has estimated that
    100 to 200 Haitian children will enter their schools by the end
    of the year and more the following year. The cost to the East
    Ramapo Central School District could be over several million
    dollars to educate and support these school children.
        Since many refugee students arrive without school records,
    teachers and specialists often need to test entering refugee
    student's academic knowledge and language ability to know what
    grade in which to place them in. Also, many of the refugee
    school children need more support than traditional students for
    services such as grief counseling, teachers trained in cultural
    sensitivity, English as a second language courses, even
    supplies such as backpacks and notebooks.
        The Refugee School Impact Grant Program provides support to
    impacted school districts, such as the East Ramapo Central
    School District, with the funds necessary to pay for activities
    that will lead to the effective integration and education of
    all refugee children.
        Funding allows for educational support activities, such as
    English as a Second Language training, after school tutoring,
    remedial summer programs, or bilingual/bicultural aides. These
    services are desperately needed for Haitian refugee school
    children. I am privileged, as I said before, to represent a
    large concentration of Haitians and Haitian-Americans.
        Local school district superintendents in Rockland County
    have already made clear the need for additional financial
    assistance required to address the influx of refugee children
    into local schools.
        It is shocking to note that during fiscal year 2010, 2009,
    2008, 2007, the funding for the Refugee School Impact Grant
    remained at just $15 million.
        Within the Administration for Children and Families fiscal
    year 2011 congressional justification, a request is made again
    for only the same $15 million for this necessary grant program.
        The fiscal year 2011 budget request was released after the
    earthquake in Haiti, yet there was not a proactive initiative
    to increase the funding for this program. So it seems a bit
    silly that considering we had the earthquake in Haiti and
    considering we now have an influx of Haitian children coming to
    this country, that the $15 million request would remain
    stagnant. And as I mentioned, that was the same request going
    back three years ago as well. And so with these new
    circumstances there certainly should be an increase in this
    request.
        Now an additional $25 million was allocated for Social
    Service grant programs to assist Emerging Populations Programs,
    that does not include assistance for school districts. So it is
    a bit strange that we would have an additional $25 million for
    that, but not have anything on top of what we have been asking
    for the past three years for school districts.
        I fully support funding President Obama's fiscal year 2011
    budget request to fund the Social Services Programs of the ORR
    at $253 million, an increase of $25 million above fiscal year
    2010; however, I strongly encourage additional funding above
    the $15 million for the Refugee School Impact Grant Program as
    well.
        Obviously it is our responsibility to assist our local
    school districts in educating newly arrived refugee school
    children and provide them with the proper resources so they may
    fully integrate into our society.
        I urge the Budget Committee to increase funding for the
    Refugee School Impact Program above $15 million in the fiscal
    year 2011 in the budget resolution. I will also be working with
    my colleagues on the House Appropriations Committee for an
    increase in funding for this program to be included in any
    future Haiti supplemental.
        So I thank you again for the opportunity to testify before
    the Budget Committee today, and I look forward to working with
    you and answering any questions you may have.
        [The prepared statement of Eliot Engel follows:]

    Prepared Statement of Hon. Eliot L. Engel, a Representative in Congress
                           From the State of New York

        Chairman Spratt and Ranking Member Ryan, thank you for holding
    today's hearing and for the opportunity to discuss one of my priorities
    for New York's 17th District in the Fiscal Year 2011 Federal Budget.
    Specifically, I would like to discuss the need for increased funding to
    the Refugee School Impact Grant Program though the Office of Refugee
    Resettlement, Administration for Children & Families, Department of
    Health & Human Services.
        We are all aware of the devastation caused by the earthquake in
    Haiti, and have welcomed Haitian refugees, Haitian immigrants and
    Haitian-Americans returning to the U.S. Yet the influx of refugee
    children into our local schools is putting a devastating strain on
    school districts. The districts are already feeling their budgets are
    constrained due to the severe recession we are experiencing. I have
    heard this concern not only from my New York colleagues, but also my
    colleagues from South Florida as well.
        It is estimated in New York that $15,536 is spent per pupil for
    overall education spending. Haitian refugee school children will also
    need more specialized support, requiring additional funds per pupil.
    The superintendent of the East Ramapo Central School District has
    estimated that 100-200 Haitian children will enter their schools by the
    end of the year. The cost to the East Ramapo Central School District
    could be over several million dollars to educate and support these
    school children.
        Since many refugee students arrive without school records, teachers
    and specialists often need to test entering refugee student's academic
    knowledge and language ability to know what grade to place them. Also,
    many of the refugee school children need more support than traditional
    students for services such as grief counseling, teachers trained in
    cultural sensitivity, English as a Second Language courses, even
    supplies such as backpacks and notebooks.
        The Refugee School Impact Grant Program provides support to
    impacted school districts, such as the East Ramapo Central School
    District, with the funds necessary to pay for activities that will lead
    to the effective integration and education of all refugee children.
    Funding allows for educational support activities, such as English as a
    Second Language training, after school tutoring, remedial summer
    programs, or bilingual/bicultural aides. These services are desperately
    needed for Haitian refugee school children.
        I am privileged to represent a large concentration of Haitians and
    Haitian-Americans. Local school district superintendents in Rockland
    County have already made clear the need for additional financial
    assistance to address the influx of refugee children into local
    schools. It is shocking to note during FY2010, 09, 08, and 07 the
    funding for the Refugee School Impact grant program remained at $15
    million. Within the Administration for Children and Families FY2011
    Congressional Justification, a request is made again for only $15
    million for this necessary grant program. The FY2011 Budget Request was
    released after the earthquake in Haiti, yet there was not a proactive
    initiative to increase the funding for this program.
        However, an additional $25 million was allocated for Social Service
    grant programs to assist Emerging Populations programs, which does not
    include assistance for school districts. I support fully funding
    President Obama's FY2011 budget request to fund the Social Services
    programs of the ORR at $253 million, an increase of $25 million above
    FY2010. However, I strongly encourage additional funding above $15
    million for the Refugee School Impact Grant Program as well.
        It is our responsibility to assist our local school districts in
    educating newly arrived refugee school children, and provide them with
    the proper resources so they may fully integrate into our society. I
    urge your Committee to increase funding for the Refugee School Impact
    Program above $15 million in the FY2011 in the Budget Resolution. I
    will also be working with my colleagues on the House Appropriations
    Committee for an increase in funding for this program to be included in
    any future ``Haiti Supplemental.''
        Thank you again for the opportunity to testify before the Budget
    Committee today. I look forward to working with you and answering any
    questions you may have.

        Mr. Schrader. Thank you very much, representative, I
    appreciate your comments and certainly well stated and very
    compelling arguments about the increase necessary given the
    extremely extraordinary and horrific situation that is now
    going on in Haiti, so as the Chair I will take that in
    advisement and talk to my colleagues.
        Mr. Engel. Thank you very much.
        Mr. Schrader. Thank you very much. Well the Chair will
    stand in recess subject to call the Chair for a little bit.
        [Recess]
        Mr. Schrader. Back to order. Welcome the Honorable
    Representative Davis from Illinois. Appreciate your attending
    and look forward to your comments.

    STATEMENT OF HON. DANNY K. DAVIS, A REPRESENTATIVE IN CONGRESS
                       FROM THE STATE OF ILLINOIS

        Mr. Davis. Thank you very much Mr. Chairman, and I would
    like to begin by thanking Chairman Spratt, Ranking Member Paul
    Ryan and other Members of the Budget Committee for opportunity
    to appear here today.
        Never before has there been a level of economic distress
    and uncertainty that for generations to come would marvel or
    match what we are experiencing today. According to a recent CBO
    report, ``the recession has lowered employment by about 11
    million'' and automatic stabilizers will add to/increase the
    federal budget deficit of about ``$400 billion'' in 2010 and
    2011. And while economic indicators suggest we have passed the
    trough of the recession, forecasters predict that recovery will
    be slow.
        As we move from recession to recovery, we must examine the
    efficacy of federal programs in fulfilling intended outcomes
    and resolve fragmented service-delivery at every level. More
    broadly, we must utilize current economic conditions to our
    advantage to advance cooperation, coordination, and
    collaboration among federal, state, and local agencies
    affecting our children well-being and our nation's future.
        To this end, I commend President Obama for his
    comprehensive approach to budgeting and I commend him for
    holding the line, but at the same time recognizing that there
    are areas where we need to provide every level of service that
    we possibly can.
        In particular I am very much concerned about the whole
    entry of re-entry, and I urge the Budget Committee to try and
    make sure that we fully fund something called the Second Chance
    Program, and that we budget the kind of resources for those
    activities that can be instrumental in helping people reconnect
    with society in a very meaningful way.
        In addition to that, all of us know that education is
    important for having a decent and good life in this country,
    and I would urge that we put as many resources into education
    at every level beginning with early childhood all the way
    through to the highest levels of education that are needed in
    our society.
        I also want to mention the whole need for health awareness,
    health education, and health promotion. We talk a great deal
    about what it costs to provide health services, but I can
    assure you that if we help people learn how to better care for
    themselves we can reduce the cost of delivering care, we can
    increase and improve the health status of our citizens, and we
    can make America a better place in which to live. And one of
    the areas in which we can do that through is community health
    centers which I consider to be the best thing that has happened
    to ambulatory healthcare in this country since the Indians
    discovered corn flakes. And so obviously I am very high on this
    type of program, and I want to thank you for the opportunity to
    be here and to testify, and I know that Chairman Spratt and the
    Committee have done exceedingly well in years past, I have no
    reason to believe that anything will be done differently this
    year, and so I want to commend Representative and Chairman John
    Spratt for the tremendous work that he has done, and certainly
    my commendations go to the Ranking Member, Paul Ryan from
    Wisconsin. And I thank you very much and yield back the balance
    of my time.
        [The prepared statement of Danny K. Davis follows:]

    Prepared Statement of Hon. Danny K. Davis, a Representative in Congress
                           From the State of Illinois

        Good Morning, I would like to begin by thanking Chairman John
    Spratt, Ranking Member Paul Ryan and Members of the Budget Committee
    for today's hearing on the proposed FY '11 budgetary spending and
    agenda.
        Never before has there been a level of economic distress and
    uncertainty for generations to come. Indeed, according to a recent CBO
    report, ``the recession has lowered employment by about 11 million''
    and automatic stabilizers will add to/increase the federal budget
    deficit of about ``$400 billion'' in 2010 and 2011. (January 2010)
    While economic indicators suggest we have passed the trough of the
    recession, forecasters predict the recovery will be slow.
        As we move from recession to recovery, we must examine the efficacy
    of federal programs in fulfilling intended outcomes and resolve
    fragmented service-delivery at every level. More broadly, we must
    utilize current economic conditions to our advantage to advance
    cooperation, coordination and collaboration among federal, state and
    local agencies affecting our children well-being and our nation's
    future.
        To this end, I commend President Obama for his comprehensive
    forward-focus approach of investing in public programs to better serve
    poor, low-income Americans living at/below the poverty line by:
         Expanding the Race to the Top competition, which
    encourages successful educational reforms at the state and local level;
         Increasing Community Health Centers (CHC) funding aimed at
    renovating and improving CHC facilities and knowledge management
    systems;
         Spurring innovative interagency partnership between HHS
    and DOJ for Drug Courts, Reentry Programs and Residential
    (institutions);
         Increasing Department of Labor's WIA/Transitional jobs
    appropriations, which includes funding for Section 212 of Second
    Chance, transferable funding to Health and Human Services and the
    Department of Justice for pilot and demonstrational transitional job
    programs in HHS, DOJ and increasing Youth Build programs for high
    school dropouts who've reenrolled in alternative schools; and lastly
         Establishing a new Fatherhood, Marriage, and Families
    Innovation Fund in an attempt to build stronger evidence-base service
    intervention models aimed at removing barriers to employment and
    increasing family functioning and parenting capacity.
        These issues and near and dear to my heart and I wholeheartedly
    support the Administration's proposed budget and agenda to invest in
    our children well-being and nation's economic viability.
        In closing, thank you Chairman Spratt and Ranking Member Ryan for
    today's hearing and for the opportunity to lend my voice in the call
    for Responsible Government.

        Mr. Schrader. Thank you very much, appreciate the comments
    from the gentleman from Illinois, very excellent comments
    recognizing the investments the President and hopefully the
    Congress will be putting into the re-entry issues, educational
    levels, and our community health centers. Really good comments,
    thank you.
        Next we have the Honorable Congresswoman from California,
    Ms. Lee.

      STATEMENT OF HON. BARBARA LEE, A REPRESENTATIVE IN CONGRESS
                      FROM THE STATE OF CALIFORNIA

        Ms. Lee. Thank you very much. Well first let me thank you
    for inviting the Congressional Black Caucus to come share the
    priorities of our fiscal year 2011 budget. The Congressional
    Black Caucus budget priorities are a reflection of our values
    and address many of the challenges that we face as a nation.
        While some are saying that the economy is in recovery, it
    is clear that we must do more to create jobs and help
    struggling families get back on their feet. We must maintain
    our commitment to the families who are struggling to find work,
    facing foreclosures, eviction, and even homelessness. We must
    especially focus on increasing support for the chronically
    unemployed.
        By all credible amounts the Obama administration and this
    Congress saved our economy from total collapse under the weight
    of the failed policies of the past, but our budget must do more
    to help American families who still suffer the consequences of
    the ongoing economic crisis.
        As the House Budget Committee begins to consider the
    President's fiscal 2011 budget, the Congressional Black Caucus
    respectfully highlights the following priorities that the
    Committee should consider. A full list will be submitted for
    the record.
        First, job creation and economic development. Our efforts
    on job creation must do more to specifically target the
    chronically unemployed for opportunities for job training and
    employment. The solutions that are included in our budget must
    include worker training and the use of existing federal
    programs that can target job creation to those communities with
    the highest rates and longest history of unemployment.
        The budget must support the growth of a green economy by
    including the $275 million in dedicated funding passed by the
    house in the Jobs for Main Street Act of 2009.
        The CBC recommends a larger increase for Function 150 to
    account for additional aid for emergency relief, reconstruction
    in long-term development efforts in Haiti.
        We also recommend that additional funds be allocated
    towards the global fight for HIV Aids, Tuberculosis, and
    Malaria. We will improve global peace and security by
    increasing funding for USAID, migration and refugee assistance,
    peace keeping efforts, and our international education,
    healthcare, and cultural exchange programs, child survival and
    health programs, and development assistance.
        The CBC also supports reducing funding for the Failed
    Ballistic Missile Defense Program in vigorously targeting
    waste, fraud, and abuse at the Defense Department.
        With regard to healthcare the CBC continues to support the
    President's call for health insurance reform. The CBC urges the
    Budget Committee to account for the cost and savings of health
    insurance reform with a public health insurance option to
    ensure that the 45 million uninsured Americans, 4 million of
    whom are children, have access to quality and affordable
    healthcare.
        The CBC urges the committee to account for funding efforts
    to combat and reduce juvenile crime in efforts to rehabilitate
    ex-offenders, as my colleague just so brilliantly set forth.
        We urge full funding of the Second Chance Act, and much
    needed assistance in increases for youth crime intervention
    programs, and to account for the passage of the Youth PROMISE
    Act.
        The CBC strongly supports the President's request to
    include $8.1 billion to strengthen vital nutrition program
    during this terrible recession.
        We urge the committee to budget for extensions to vital
    programs like unemployment insurance, Medicaid, and the
    Recovery Act's COBRA subsidy, and to include funds for a robust
    reauthorization of the TANF Block Grants.
        Let thank the committee again for the opportunity to share
    the priorities of the Congressional Black Caucus. If there are
    no objections I would like to submit detailed list for the
    record.
        The CBC has a broad range of priorities with a common
    purpose to safeguard our shared values and to invest in an
    America that will ensure opportunities and prosperity for
    generations to come.
        [The prepared statement of Barbara Lee follows:]

     Prepared Statement of Hon. Barbara Lee, a Representative in Congress
                          From the State of California

        Thank you Chairman Spratt, Ranking Member Ryan and the members of
    the Budget Committee for giving me the opportunity to share with you,
    the priorities of the Congressional Black Caucus for the FY 2011
    Budget.
        Let me also thank Congressman Bobby Scott and Congresswoman Gwen
    Moore and every member of the CBC and their staffs for their work in
    support of the CBC and our goals for this year's budget.
        Mr. Chairman, a budget is moral document. It shines a light on what
    the priorities of our government are. It also defines what we as a
    community, as a society and as a nation hold dear.
        That's why I am pleased that the CBC's budget priorities are a
    reflection of our values and addresses many of the challenges that we
    face as a nation.
        While some are saying that the economy is in recovery it is clear
    that we must do more to create more jobs and help struggling families
    get back on their feet.
        We must maintain our commitment to the families who are struggling
    to find work, facing foreclosure, eviction and even homelessness.
        We must especially focus on increasing support for the chronically
    unemployed.
        By all credible accounts, the Obama Administration and this
    Congress saved our economy from total collapse under the weight of the
    failed policies of the past.
        But our budget must do more to help the American families who still
    suffer the consequences of the ongoing economic crisis.
        As the House Budget Committee begins to consider the President's
    Fiscal Year 2011 Budget, the Congressional Black Caucus respectfully
    highlights the following priorities that the Committee should consider.
        A full list will be submitted for the record.
                     job creation and economic development
        Our efforts at job creation must do more to specifically target the
    chronically unemployed for opportunities for job training and
    employment.
        The solutions included in the budget must include worker training
    and the use of existing federal programs that can target job creation
    to those communities with the highest rates and longest history of
    unemployment.
        The budget must support the growth of a Green Energy Economy by
    including the $275 million in dedicated funding passed by the House in
    the Jobs for Main Street Act of 2009.
                             international affairs
        The CBC recommends a larger increase for Function 150 to account
    for additional aid for emergency relief, reconstruction and long term
    development efforts in Haiti.
        We also recommend that additional funds be allocated towards the
    Global Fund to Fight AIDS, Tuberculosis and Malaria.
        We will improve global peace and security by increasing funding for
    USAID; migration and refugee assistance; peacekeeping efforts in
    Darfur; international education, healthcare and cultural exchange
    programs; child survival and health programs; and development
    assistance.
                                national defense
        The CBC supports reducing funding for the failed Ballistic Missile
    Defense program and vigorously targeting waste, fraud and abuse at the
    Defense Department.
                                   healthcare
        The CBC continues to support the President's call for health
    insurance reform. The CBC urges the Budget Committee to account for the
    cost and savings of health insurance reform with a public health
    insurance option to ensure that the 45 million uninsured Americans
    (four million of whom are children) have access to quality and
    affordable healthcare.
                                justice programs
        The CBC urges the Committee to account for funding efforts to
    combat and reduce juvenile crime and efforts to rehabilitate ex-
    offenders. We urge full funding of the Second Chance Act, much needed
    increases in youth crime intervention programs and to account for
    passage of the Youth PROMISE Act.
                                income security
        The CBC strongly supports the President's request to include $8.1
    billion strengthen vital nutrition programs during this terrible
    recession.
        We urge the Committee to budget for extensions to vital programs
    like Unemployment Insurance, Medicaid, and the Recovery Act's COBRA
    subsidy and include funds for a robust reauthorization of the Temporary
    Assistance for Needy Families (TANF) block grant.
                                    closing
        Let me thank the committee again for the opportunity to share the
    priorities of Congressional Black Caucus with you today and if there
    are no objections I would like to submit a detailed list for the
    record.
        The Congressional Black Caucus has a broad range of priorities but
    with a common purpose, to safeguard our shared values and to invest in
    an America that will ensure opportunities and prosperity for
    generations to come.

        [Additional submission of Ms. Lee follows:]

       Congressional Black Caucus (CBC) Priorities for the FY 2011 Budget

        As the House Budget Committee begins to draft the Congressional
    Budget Resolution for Fiscal Year 2011, the Congressional Black Caucus
    highlights the following priorities:
                     job creation and economic development
        The CBC urges Congress to utilize future jobs bills to expand
    unemployment insurance and COBRA benefits; Locally-directed funding for
    Summer Youth Employment and collegiate level apprenticeships and/or
    fellowships; Create direct public job initiatives, involving the
    Department of Labor Employment & Training Administration and the
    Corporation for National and Community Service, to maximize direct
    training and hiring; Enforce the minority contracting requirements
    under the Department of Transportation; Promote equal access to funding
    for Projects of National Significant and National Corridor grant in the
    extension of SAFETEA-LU; include language access and culturally
    competent staff for job programs; include disaggregated data
    collection; and provide access to capital and technical assistance to
    micro and small businesses.
        We ask that the budget include funding for the On-the-Job Training
    program in a future jobs bill and use the targeted approach to funding
    and program distribution for the bill by incorporating Public Use
    Microdata Areas (PUMA's) and/or other authorized approaches to identify
    and target areas with poverty rates of 15 percent or higher or
    unemployment of greater than 10 percent.
        The CBC urges the Committee to ensure continued support for the
    growth of a Green Energy Economy by including the $275 million in
    dedicated energy efficiency and renewable energy training programs
    (Green Jobs Act), funding passed by the House in the Jobs for Main
    Street Act of 2009.
                                national defense
        The CBC supports robust funding for our troops and America's
    national defense. The CBC supports reducing funding for the failed
    Ballistic Missile Defense program and reallocating those funds within
    the Defense Department to fund increases in shipbuilding, troop
    readiness, military and civilian pay, cancer research, and mental
    health services.
        However, the Defense Department is notoriously known for being one
    of the more wasteful federal agencies. The CBC commends the President
    for his continued efforts to reform and improve DoD procurement
    practices and his commitment to end wasteful and redundant weapons
    systems. The CBC has consistently fought for funding to weed out waste,
    fraud and abuse within the Department of Defense. In 2001, the
    Government Accountability Office made 3,099 recommendations to reduce
    waste, fraud and abuse at the Department. According to a December 2009
    report by the GAO, the Department has implemented 60.6% of the
    recommendations. According to the GAO, the Department has decided to
    not implement 12% of the recommendations and has yet to act on 27% of
    them. The CBC encourages the Budget Committee to again include the
    necessary funding for the Defense Department to implement the remaining
    GAO recommendations and to provide justifications to the Congress on
    each of their decisions not to implement the recommendations. The CBC
    also recommends that the Committee provide the necessary funding for a
    new GAO report on waste, fraud and abuse at the Department of Defense.
                             international affairs
        The CBC commends the President for again requesting an increase of
    nearly $8 billion for the Department of State and other international
    programs in FY2011, which is a 15.6% increase over the enacted FY2010
    level. However, the CBC recommends a larger increase for Function 150
    to account for additional and much needed aid for emergency relief,
    reconstruction and long term development efforts in Haiti. The CBC also
    recommends that additional funds also be allocated towards the Global
    Fund to Fight AIDS, Tuberculosis and Malaria; USAID; migration and
    refugee assistance; peacekeeping efforts in Darfur; education,
    healthcare and cultural exchange programs; child survival and health
    programs; and development assistance.
        As our combat presence in Iraq continues to wind down in FY 2011,
    the CBC also urges the Budget Committee to further account for the need
    to increase Iraqi humanitarian assistance in FY 2011. Since the
    President has escalated U.S. military involvement in Afghanistan, the
    CBC also urges the Committee to budget for additional humanitarian
    assistance to Afghanistan.
                                income security
        The CBC strongly supports the President's request to include $8.1
    billion for discretionary nutrition programs, such as the Supplemental
    Nutrition Assistance Program and WIC as well the $10 billion over 10
    years to strengthen Child Nutrition and WIC Reauthorization
    legislation.
        We urge the Budget Committee to include extensions to vital
    programs like Unemployment Insurance, Medicaid, and the Recovery Act's
    COBRA subsidy. The CBC commends the President for including funds to
    establish a practical, national asset limit floor across means-tested
    human services, food, and cash assistance programs. We plan to continue
    to work to help the millions of families who have been forced to
    receive government assistance due to the economic downturn. As more and
    more Americans lose their jobs, it makes little sense to force families
    to drain their savings to the extent necessary to qualify for certain
    temporary economic assistance programs.
        The CBC also urges the Committee to consider including the
    necessary budget authority to account for the cost of increasing the
    federal minimum wage and indexing it to inflation. Finally, the
    Committee should also consider the cost of redefining the Federal
    Poverty Level, which is currently $22,050 for a family of four (100%).
    The CBC urges the creation of a Decent Living Standard Threshold to
    determine the amount of annual income that would allow an individual to
    live beyond deprivation at a safe and decent, but modest, standard of
    living.
        The CBC also strongly urges that the Committee include funding to
    accommodate the overdue reauthorization of the Temporary Assistance for
    Needy Families (TANF) block grant. Due to the economic downturn and
    subsequent rise in poverty, TANF, which was last reauthorized in the
    Deficit Reduction Act of 2005 and has annually been flat funded since
    its enactment in 1996, is in need of a substantial increase in funding.
    Along with this increased funding, the CBC urges that the Committees of
    jurisdiction work to reform this work-based program to adequately work
    in a recession where there are very few jobs, expand access to basic
    and post-secondary vocational education, expand eligibility, re-
    evaluate time limits, expand access to supportive services like child
    care, and increase the amount of cash assistance for TANF recipients.
                                housing programs
        The housing crisis lies at the center of the economic problems we
    face today. The CBC encourages the Committee to reverse eight years of
    underfunding of the nation's affordable housing programs and we are
    pleased that the Administration has proposed a HUD budget that
    increases funding for the Department by 19 percent. We urge the
    Committee to match this aggressive budget authorization and to support
    large investments into the Community and Regional Development and the
    Income Security functions in order to account for increases in
    Affordable Housing programs.
        Specifically, the Committee should consider including the necessary
    budget authority to fund the Section 8 public housing operating subsidy
    at 100% of need. In addition, the Committee must also consider
    providing sufficient budget authority for the renewal of all Section 8
    vouchers currently in use.
        Although the public housing capital fund received an injection of
    $4 billion in the American Recovery and Reinvestment Act, this only
    represented 12.5 percent of the estimated $32 billion backlog in
    deferred capital needs. The President's FY2011 Budget cuts the fund by
    more than $450 million. The CBC urges the Committee to reject this cut
    and to provide the necessary budget authority to meet deferred capital
    needs.
        The President's budget cuts the Supportive Housing for the Elderly
    (Section 202) program by more than $550 million and the Supportive
    Housing for Persons with Disabilities (Section 811) program by $210
    million. The CBC strongly urges the Committee to reject these cuts.
    These supportive housing programs are vital to millions of Americans
    and should not be cut during an economic recession.
        We urge the committee to continue our commitment to support the Low
    Income Housing Tax Credit (LIHTC) program as the economic crisis has
    undermined the intended funding source even as it increases the need
    for more affordable housing. It is a vital tool for our affordable
    housing community to leverage federal dollars to provide critically
    needed housing and will create jobs, stimulate the economy and take
    advantage of the window of opportunity created by the large drop in
    housing prices.
        The CBC urges the Budget Committee reject the President's $9.9
    million cut from the Fair Housing Assistance Program (FHAP) and the
    Fair Housing Initiatives Program (FHIP). These programs comprise the
    federal government's primary expenditures at the state and local levels
    on enforcing the nation's fair housing laws that combat housing
    discrimination and ensure equal housing opportunities. The CBC believes
    that sustained funding for this program is critically important as the
    housing market slowly recovers.
        Additionally, while the CBC supports the positive new programs,
    such as Bank on USA and the National Healthy Food Financing Initiative
    included in the President's proposals on CDFI's, we are concerned that
    the recently enacted Capital Magnet Fund is being cut off during a
    critical time for affordable housing. For many of the same reasons we
    must continue to support the LIHTC programs, we must support the
    Capital Magnet Fund. Programs that leverage federal dollars to create
    public/private partnerships which invest in our most vulnerable
    communities are absolutely critical, now more than ever.
                                justice programs
        The CBC urges the Committee to account for funding efforts to
    combat and reduce juvenile crime and efforts to rehabilitate ex-
    offenders. The CBC urges the full funding of the Second Chance Act,
    which provides transitional assistance to assist ex-offenders in coping
    with the challengers of reentry. Removing barriers to reentry has
    proven to reduce recidivism, which in the long run reduces crime. In
    addition, the Committee should account for much needed increases in
    youth crime intervention programs. The CBC also urges the Committee to
    account for passage of the Youth PROMISE Act, a comprehensive gang and
    youth violence prevention bill, and allocate funding at authorized
    levels. Research has shown that targeting funding towards intervention
    rather than incarceration is more effective at reducing crime and
    saving the taxpayer money in the long run.
        The CBC has always supported efforts to increase funding for the
    Justice Assistance Program, the Juvenile Justice Program, Civil Rights
    Enforcement, the COPS Program, the Byrne Justice Grant Program, and
    State and Local Law Enforcement Assistance. The CBC urges the Committee
    to account for sustaining many of the important increases for these
    programs that were included in the American Recovery and Reinvestment
    Act.
                                   education
        The CBC offers its full support to the President's budget request
    for a $3 billion increase in K12 education programs as well as the
    additional $1 billion promised to Congress by the President upon
    passage of an overhaul of the Elementary and Secondary Education Act.
    However, the CBC is concerned with the President's new focus on
    competitive grant funding for education, his proposal to flat fund
    Title I, and his increased emphasis on charter schools. In addition,
    the CBC would like to see continued and sustained increases in
    education funding, especially for Title I and IDEA.
        The CBC wholeheartedly supports the President's continued efforts
    to reform and expand the Pell Grant program.
        The CBC also supports increases to Race to the Top and Promise
    Neighborhoods. At the same time, we urge the Committee to account for
    needed increases in funding for Head Start, TRIO (including Upward
    Bound), GEAR UP, Youth Build, and vocational education programs. In
    addition, the CBC urges the Committee to account for funding for
    expanded grants to states for workplace and community transition as
    authorized in the Higher Education Opportunity Act. These grants will
    better assist and encourage incarcerated individuals who have obtained
    a secondary school diploma or its recognized equivalent to acquire
    educational and job skills.
        Finally, the CBC urges the Committee to account for fully funding
    the historic increases in funding for Historically Black Colleges and
    Universities and Minority Serving Institutions authorized in the Higher
    Education Act reauthorization enacted in 2008.
                                 transportation
        The CBC supports, in general, the Views and Estimates of the
    Committee on Transportation and Infrastructure for FY 2011 urges that
    programs within the jurisdiction of the Transportation and
    Infrastructure Committee be funded at the authorized funding levels in
    FY 2011. The Transportation and Infrastructure Committee's legislative
    priorities this year include: authorization of surface transportation
    programs; reauthorization of the Federal Aviation Administration, the
    Economic Development Administration; selected provisions of the Clean
    Water Act and the Comprehensive Environmental Response, Compensation,
    and Liability Act, the Coast Guard, and the Federal Emergency
    Management Agency; and enactment of a water resources development act.
    The CBC urges that the Congressional Budget Resolution meet the
    important funding needs identified by the Transportation and
    Infrastructure Committee, to improve our nation's infrastructure and
    transportation safety and ensure that vital services, such as those
    provided by the Coast Guard, are maintained.
                                    commerce
        The CBC supports the inclusion of funding for the Minority
    Institutions Digital and Wireless Technology Opportunity Act. The
    primary focus of the Act is to award grants, contracts and cooperative
    agreements to eligible institutions ``* * * to acquire equipment,
    instrumentation, networking capability, hardware and software, digital
    network technology , wireless technology, and infrastructure to further
    the objective of the Program.'' Funding for technological updates is a
    crucial step towards reducing the `digital divide' among African
    Americans, Asian Americans, Latinos, Native Americans, and other
    minority groups.
        In addition, the CBC urges the Committee to account for increased
    funding for the Small Business Administration and Minority Business
    Development programs.
                                   healthcare
        The CBC continues to support the President's call for health
    insurance reform. The CBC urges the Budget Committee to account for the
    cost and savings of health insurance reform with a public health
    insurance option to ensure that the 45 million uninsured Americans
    (four million of which are children) have access to quality and
    affordable healthcare.
        In addition, the CBC urges the Committee to account for the
    following:
         Funding the Ryan White HIV/AIDS program at $2.307 billion
    to support care and treatment programs at the local level to address
    the needs of people living with HIV/AIDS. This includes a $2 million
    increase in Part D funding that effectively prevents mother to child
    transmission of HIV.
         Funding for CDC Prevention activities for HIV, STD, TB and
    Viral Hepatitis at $1.5 billion (an increase of nearly $500 million) to
    fund testing initiatives and support innovative prevention efforts at
    the local level.
         Funding for Housing for people living with HIV/AIDS
    (HOPWA) at $360 million an increase of $50 million to provide
    supportive housing for people with AIDS.
         Funding for comprehensive sex education programs that will
    be authorized by the REAL Act with at least $50 million this year to
    reduce spread of HIV and other sexually transmitted diseases and reduce
    unintended pregnancies.
         Adopt the Presidential request of $2.19 million in funding
    for the National Center on Minority Health and Health Disparities at
    NIH.
         Reserve funding ($3.5 billion) for the Health Equity and
    Accountability Act (not yet enacted).
         Funding an increase of $12 million to the Title X family
    planning program.
         Adopt the President's request of $2.436 billion for
    Community Health Centers.
         Funding of $5.3 million for the Community Outreach
    Demonstration Project that supports 17 community-based demonstration
    sites in providing comprehensive care for newborns diagnosed with
    Sickle Cell Anemia, and increase of $300,000.
         Funding of $23 million for the Health Careers Opportunity
    Program to assist individuals from disadvantaged backgrounds to receive
    the education necessary to enter a health profession.
                                    veterans
        The House Budget Committee has shown a commitment to increased
    funding for the Department of Veterans Affairs. Last year, with the
    support of the CBC, Congress passed legislation that provided $50.6
    billion in advanced appropriations for the V.A. medical care program so
    that our veterans are not hindered by budget delays. The CBC commends
    the President's budget for building upon the significant increases
    appropriated to the V.A. since 2009 and sustaining those increases over
    the next five years. The CBC urges the Committee to include this
    increase and ensure that the necessary budget authority is available to
    continue to account for the large increase in V.A. claims, the need to
    hire more caseworkers to address the V.A. claims backlog, and to
    adequately fund mental health services.
        President Obama and Veterans Affairs Secretary Shinseki have
    committed to an ambitious but achievable plan to end veterans
    homelessness within five years. An integral part of meeting that
    commitment is ongoing funding for HUD-VASH, a program that pairs HUD
    Section 8 housing vouchers with intensive VA case management services,
    to provide permanent supportive housing for severely disabled homeless
    veterans. However, the President's Budget requests no funding for this
    program in FY 2011. It is estimated that approximately 60,000 homeless
    veterans will need HUD-VASH vouchers. Over the past three fiscal years,
    Congress has appropriated $75 million a year for 10,000 new vouchers--
    for a total of 30,000 vouchers. To continue moving towards the goal of
    ending veterans' homelessness, the CBC urges the Budget Committee to
    provide the necessary budget authority for these vouchers.
                                   tax policy
        The CBC has consistently advocated for the immediate repeal of the
    2001 and 2003 Bush Tax Cuts that affect the top two income brackets.
    The CBC commends the President for allowing these tax cuts for the
    wealthiest Americans to expire at the end of 2010. The CBC also
    supports the President's proposal to tax banks to recoup billions of
    dollars in taxpayer money provided through the Troubled Asset Relief
    Program. However, the CBC urges the Budget Committee to continue to
    review inequities within the tax code that benefit the wealthiest
    American families.
        The CBC also urges the Committee to account for expanding the
    earned income tax credit and child tax credit and make the increases in
    the American Recovery and Reinvestment Act permanent.
                      additional economic recovery efforts
        The American Recovery and Reinvestment Act has created or saved
    more than one million jobs. However, unemployment in urban areas and
    minority communities remains very high. The $15 billion Jobs bill
    recently passed by the Senate is not adequately funded nor targeted
    enough to alleviate the economic suffering in these communities. The
    President's budget proposed funding for a $100 billion temporary jobs
    initiative. In addition, the President has also requested $76 billion
    for temporary extensions of policies currently in place to strengthen
    the economic recovery, such as extending the Making Work Pay tax
    credit, the COBRA health insurance subsidy, and temporary bones
    depreciation provisions. The President's budget also requests an
    additional $90 billion for the extension of various mandatory
    initiatives, including a 6-month extension of FMAP relief to states,
    the TANF Emergency Fund, unemployment benefits, and the $250 refundable
    economic recovery payment to seniors and veterans. The CBC urges the
    Committee to account for these proposals that will have a direct and
    significant impact on urban and minority communities.
                                other priorities
         Fully fund the Community Development Block Grant
         Increased funding for the Public Housing Capital Fund to
    continue to address eight years of stagnant funding under the Bush
    Administration
         Fully fund the Child Care and Development Block Grant
         Fully fund the Social Services Block Grant
         Increased funding for HOPE VI
         Fully fund the Neighborhood Stabilization Program
         Increased funding for the Affordable Housing Trust Fund
         Support for the creation of a National Infrastructure Bank
         Continued funding for Hurricane Katrina recovery and
    rebuilding efforts
         Increased funding for the Environmental Justice Small
    Grants Program
         Increased funding for the National Underground Railroad
    Network to Freedom program at the National Park Service.
         Restore funding and a revenue source for the Superfund
    clean up

        Mr. Etheridge [presiding]. Without objection that will be
    included, and I thank the gentle lady for her comments and her
    commitment to making life better for everybody.
        Ms. Lee. Thank you so much.
        Mr. Etheridge. Thank you much. And without objection the
    Committee stands in recess subject to call of the chair.
        [Recess.]
        Mr. Etheridge. Calling this meeting back to order. I would
    recognize the gentle lady from Florida, Ms. Kosmas for her
    comments.

    STATEMENT OF HON. SUZANNE KOSMAS, A REPRESENTATIVE IN CONGRESS
                       FROM THE STATE OF FLORIDA

        Ms. Kosmas. Thank you Mr. Chairman. I want to thank the
    Chairman and the Ranking Member and the Members of the
    Committee for giving me this opportunity to address you
    regarding an issue frankly that is of very serious importance
    to me in my district and to the nation as a whole, not only as
    a national security issue and an economic issue, but frankly an
    issue in my mind that effects our ability to inspire a
    generation coming now for 21st Century jobs and the kind of
    economic security that this Nation needs and deserves.
        This is about actually the human space flight program, and
    we are in my district experiencing right now a transition of
    our human space flight program from the space shuttle program
    based on low earth orbit to a Next Generation Transportation
    and Exploration Program, and frankly the President's proposal
    in his budget to cancel the Constellation Program and proceed
    with the retirement of the shuttle fleet with no clear plans or
    goals for exploration has very far reaching implications. It
    threatens our leadership in space, it leaves us without the
    ability to independently launch Americans or to access the
    International Space Station for an unknown amount of time, and
    to devastate a unique world class workforce and industrial base
    that will be very difficult for us to reassemble.
        The impacts of this proposal will be felt by the entire
    nation. Tens of thousands of high paying, highly skilled jobs
    are on the line across the country at small, medium, and large
    suppliers who support both the shuttle and the Constellation
    Programs.
        Our nation's economic prosperity and the national security
    are also at stake, as I mentioned before, if we do not pursue
    technological innovation and protect our unique capabilities,
    we risk failing to inspire future generations of scientists and
    engineers, for NASA missions have inspired untold numbers of
    Americans to pursue science technology, engineering, and math.
        Congress must signal to the Administration as well as to
    industry and our international partners, as well as future
    generations of rocket scientists and explorers, that we will
    not cede our leadership in space or here on earth. We must make
    the commitment to funding a robust human space flight program
    if we want to ensure our nation's future as the leader in
    technology and innovation.
        While there is much debate over the future direction of our
    space program there is an area of consensus, and that is that
    among the members, the President, and the community, and that
    is the need to extend the life of the International Space
    Station through at least 2020. Nearly complete after a decade
    of construction the International Space Station now holds great
    promise as a national laboratory that will benefit all
    Americans, and I urge you to budget the funds necessary to
    extend its life and operation.
        However, there is only one existing vehicle with the
    capability to deliver certain pieces of hardware that would
    enable this longer life span of the International Space
    Station, maintain continued U.S. independent access to space
    and to ensure the station's research mission is maximized to
    the fullest extent possible, and that is the space shuttle.
        I am currently drafting legislation with colleagues in both
    houses that would spread out the four remaining shuttle
    missions and potentially add a certain number of additional
    flights following a review by NASA of hardware that will be
    essential to maintaining the station.
        I believe that as we debate long-term future of our human
    space program it is prudent to take steps to ensure that the
    space shuttles can continue to operate in order to fully
    support and service the International Space Station. This
    action will also help to preserve the highly skilled workforce
    and operational expertise that will be needed for the next
    generation program.
        I urge you to include in the fiscal year 2011 budget
    resolution 1.2 billion in additional funds for the Space
    Shuttle Program above the President's request, to possibly
    spread out the remaining manifest, and to add missions such as
    STS 135, as well as 100 million in additional funds for the
    International Space Station in order to provide for the
    procurement of additional hardware.
        Our Human Space Program is as I said before a national
    treasure. It has served as a source of inspiration, innovation,
    and pride for scientists and engineers and for all of America,
    and it has accelerated the development of technologies that
    improve lives here on earth and it has greatly contributed to
    our nation's economic and national security.
        We should take steps to protect our strategic capabilities,
    including the Shuttle Program and its highly skilled workers
    while Congress debates the President's budget proposal and the
    future of our Space Program.
        Thank you very much.
        [The prepared statement of Suzanne Kosmas follows:]

       Prepared Statement of Hon. Suzanne M. Kosmas, a Representative in
                       Congress From the State of Florida

        Chairman Spratt, Ranking Member Ryan and Members of the Committee--
    thank you for allowing me the opportunity to address you regarding an
    issue of great importance not only to my district, but to the nation as
    a whole--the transition of our human space flight program from the
    space shuttle program based in low-Earth orbit to a next generation
    transportation and exploration program.
        The President's proposal to cancel the Constellation program and
    proceed with the retirement of the shuttle fleet, with no clear plans
    or goals for exploration, will have far-reaching implications--it will
    threaten our leadership in space, leave us without the ability to
    independently launch Americans or access the International Space
    Station for an unknown amount of time, and devastate a unique, world-
    class workforce and industrial base that will be difficult to
    reassemble.
        The impacts of this proposal would be felt by the entire nation.
    Tens of thousands of high-paying, highly-skilled jobs are on the line
    across the country at small, medium, and large suppliers who support
    both the Shuttle and Constellation programs. Our nation's economic
    prosperity and national security will also be at stake if we do not
    pursue technological innovation and protect our unique capabilities.
    And we risk failing to inspire future generations of scientists and
    engineers--for NASA's missions have inspired untold numbers of
    Americans to pursue STEM fields.
        Congress must signal to the Administration--as well as to industry,
    our international partners, and future generations of rocket scientists
    and explorers--that we will not cede our leadership in space--or here
    on Earth. We must make the commitment to funding a robust human space
    flight program if we want to ensure our nation's future as the leader
    in technology and innovation.
        While there is much debate over the future direction of our space
    program, there is one area of consensus among Members, the President,
    and domestic and international scientific communities--and that is the
    need to extend the life of the International Space Station (ISS)
    through at least 2020. Nearly complete after a decade of construction,
    the ISS now holds great promise as a National Laboratory that will
    benefit all Americans and I urge you to budget the funds needed to
    extend its operation.
        However, there is only one existing vehicle with the capability to
    deliver certain pieces of hardware that will enable a longer lifespan
    of the ISS, maintain continued U.S. independent access to space, and
    ensure the station's research mission is maximized to fullest extent
    possible--and that is the space shuttle.
        I am currently drafting legislation with colleagues in both houses
    that would spread out the four remaining shuttle missions and
    potentially add a certain number of additional flights following a
    review by NASA of hardware that will be essential to maintaining the
    station. I believe that as we debate long-term future of our human
    space program, it is prudent to take steps to ensure the Space Shuttles
    can continue to operate in order to fully support and service the ISS.
    This action will also help to preserve the highly-skilled workforce and
    operational expertise that will be needed for the next generation
    program.
        I urge you to include in the FY11 budget resolution $1.2 billion in
    additional funds for the space shuttle program above the President's
    request, to possibly spread out the remaining manifest and add
    missions, such as STS-135, as well as $100 million in additional funds
    for the International Space Station in order to provide for the
    procurement of additional hardware.
        Our human space program is a national treasure. It has served as a
    source of inspiration for young scientists and engineers, it has
    accelerated the development of technologies that improve lives here on
    Earth, and it has greatly contributed to our nation's economic and
    national security. We should take steps to protect our strategic
    capabilities--including the shuttle program and its highly-skilled
    workers--while Congress debates the President's budget proposal and the
    future of our human space flight program.

        Mr. Etheridge. Thank you, gentle lady and thank her very
    much for her comments, and it will be included in the record.
    Thank you, ma'am.
        Ms. Kosmas. Thank you so much, appreciate the opportunity.
        Mr. Etheridge. I now recognize the gentleman from Florida,
    Mr. Posey for five minutes.

    STATEMENT OF HON. BILL POSEY, A REPRESENTATIVE IN CONGRESS FROM
                          THE STATE OF FLORIDA

        Mr. Posey. Thank you, Mr. Chairman, I would like to echo
    the comments of my colleague, Congresswoman Kosmas, and I
    appear before the Committee today to ask that you include
    sufficient funding for NASA to accomplish two specific
    missions.
        First, to fly the shuttle through fiscal year 2011
    including at least two missions, one of which would be to
    launch the Alpha Magnetic Spectrometer, and second, sufficient
    funding to continue the development of the Constellation
    Program.
        The NASA proposal outlined by the Administration several
    weeks ago is seriously lacking in vision and mission. It
    appears to have been developed on the fly with little
    coordination with public and private stakeholders.
        Just one glaring example is NASA's surprising decision to
    terminate the Constellation program. The Air Force last year
    indicated that Constellation's delay would adversely impact our
    military solid-rocket-motor industrial base. One can only
    assume that the Administration's proposal to cancel
    Constellation would be devastating for national security.
        NASA fails to fully understand, or at least obviously does
    not take into consideration the much broader military,
    industrial, and economic implications of their proposals. It
    would be irresponsible for Congress to embrace this plan
    without further scrutiny.
        NASA was placed on hold last year as the Augustine
    Committee undertook a review of our nation's Space Flight
    program. The Augustine report made clear, what many of us
    already knew, if America is to have a robust space exploration
    program it must have a budget to match it.
        That, my friends, is the essential question before you and
    this Congress. Are we going to have a robust space program and
    continue down the path forged by John F. Kennedy or are we
    going to return to the days of Sputnik when the United States
    took a back seat. Are we going to cede space to Russia and
    China?
        Apollo 7 astronaut Walter Cunningham said the
    Administration's proposal, ``accelerates America's downward
    spiral toward mediocrity in space exploration.'' Apollo 17
    astronaut Harrison Schmitt said the plan would, and I quote
        ``cede the Moon to China, the American Space Station to
    Russia, and assign liberty to the ages. Other nations would
    accrue the benefits--psychological, political, economic, and
    scientific--that the United States harvested as a consequence
    of Apollo's success 40 years ago. This lesson has not been lost
    on our ideological and economic competitors.'' End of quote.
        Will the future that this Committee sets for our nation be
    bold or will it be mediocre? Bold demands a rejection of the
    Administration's plan. Our space program has generated
    thousands of inventions and spin offs that have been translated
    directly into the creation of tens of thousands of jobs right
    here in America that have contributed to our economic
    dominance.
        The Administration makes two high risk mistakes. Number
    one, they bet our nation's entire space program on yet unproven
    commercial vendors. While I hope that commercial vendors will
    one day be able to get us there, we should not bet the whole
    program on that unproven hope.
        Number two, the Administration puts Russia in the driver's
    seat by relying solely on them to get our astronauts to the
    space station and back safely.
        According to the Augustine Committee and information I have
    received from NASA and contractors, the annual cost of flying
    the shuttle may cost up to one billion for two flights per
    year, much less than generally expected. For a budget equal to
    a fraction of one percent of the stimulus, we can extend the
    shuttle for another year or two and provide a smoother
    transition for thousands of Americans who rely on our space
    program for the well being at a time when our unemployment rate
    is at its highest in three decades.
        Extending the shuttle through fiscal year 2011 is essential
    if we are to accommodate the launch of the Alpha Magnetic
    Spectrometer, which may not be ready until the spring of 2011,
    several months beyond the Administration's arbitrary December
    31st, 2010 deadline for the last shuttle launch.
        Providing sufficient funding for Constellation will ensure
    that we do not abandon the investments already made. To that
    end we should work to see that the space gap is minimized. Let
    us heed the words of space pioneer Gene Cernan, the last human
    to walk on the moon, who said just last week, ``Now is the time
    for wiser heads in Congress to prevail. Now is the time to
    overrule mediocrity. Now is the time to be bold, innovative,
    and wise in deciding how we invest in the future of America.''
        Thank you very much, Mr. Chairman.
        [The prepared statement of Bill Posey follows:]

      Prepared Statement of Hon. Bill Posey, a Representative in Congress
                           From the State of Florida

        Chairman Spratt, Ranking Member Ryan, Members of the Committee:
    Thank you for the opportunity to testify today. You have likely already
    heard a great deal about the President's FY 2011 budget request for the
    National Aeronautics and Space Administration (NASA). Today, I appear
    before this Committee to ask that the Committee provide NASA with
    sufficient resources to continue Shuttle operations through at least
    Fiscal Year 2011, sufficiently fund Constellation and see that the
    space gap between the two is minimized. I am here to tell you why this
    is the wisest policy.
        The plan for human space flight, as outlined by the Administration,
    is significantly lacking in detail and appears to have been developed
    with little or no coordination with public and private stakeholders.
        One glaring example is NASA's announced decision to seek
    termination of the Constellation program. This decision will adversely
    impact our nation's solid-rocket-motor industrial base, which is
    critical to our military. In a report from last June to the Congress,
    the Air Force said that delays in the Constellation program could have
    significant negative impact on the industrial base. When questioned
    about this issue last week, Air Force Secretary Donley testified that
    ``we have a challenge on the solid-rocket-motor industrial base and on
    the booster industrial base.''
        NASA is making the decision in a vacuum, and does not fully
    understand, or at least obviously does not take into consideration, the
    much broader military, industrial, and economic implications. The plan,
    and I use that term lightly, demands considerably more discussion and
    public scrutiny. I am very concerned that they continue to develop this
    plan ``on the fly'' and that it is irresponsible for the Congress to
    embrace it without considerably more input from all the stakeholders.
        Over the course of the last year we lost precious time in charting
    a course for the future for our nation's human space flight program.
    NASA remained without an Administrator for much of the year, and NASA
    was essentially placed on hold as the Augustine Committee undertook a
    review of our nation's human space flight program. All the while NASA
    continued to approach the impending retirement of the Shuttle fleet.
    Over the years, the Constellation program continued to be underfunded.
        The Augustine Committee report made clear what many of us already
    knew: If America is to have a robust space exploration program it must
    have a budget to match it. That, my friends, is the essential question
    before you and this Congress. Are we going to continue to have a robust
    space program and continue on the path forged by John F. Kennedy? Or,
    are we going to return to the days of Sputnik, when the United States
    took a back seat to space exploration. Are we going to cede space to
    Russia and China? Apollo 7 astronaut Walter Cunningham recently said
    that the Administration's proposal ``accelerates America's downward
    spiral toward mediocrity in space exploration.''
        I think Apollo 17 astronaut and former U.S. Senator Harrison
    Schmitt summarized it best last week when he wrote that this proposal
    ``would cede the Moon to China, the American Space Station to Russia,
    and assign liberty to the ages. Other [nations] would accrue the
    benefits--psychological, political, economic, and scientific--that the
    United States harvested as a consequence of Apollo's success 40 years
    ago. This lesson has not been lost on our ideological and economic
    competitors.''
        It is my sincere hope that it will not be lost on this Congress
    either. This Committee is the one that will take the first step
    regarding the President's NASA budget. I urge you, my colleagues, to
    think about the future we are building for our children and
    grandchildren. Will it be a future where we do mediocre things or will
    it be one where we embark to accomplish bold things?
        Some have suggested that this is a question of jobs. That is true.
    The lives of tens of thousands of Americans will be disrupted if the
    Administration's proposal is adopted. There will be 10,000 direct jobs
    and according to a recent economic impact assessment as many as 23,000
    jobs will be lost--almost immediately--in my district and that of Rep
    Suzanne Kosmas to my north. We are still waiting on a current NASA
    Workforce Transition Strategy report. The Consolidated Appropriations
    Act of 2008 requires NASA to produce this strategy every six months;
    the last one Congress received is from July of 2009. This is further
    evidence of a failure to plan for the future and follow Congressional
    intent. We need a better landing and a smoother transition for our
    nation's premier space launch workforce. This is a highly skilled
    workforce that cannot be replaced, and will be lost if we travel down
    the proposed path.
        Space exploration touches the life of every American. Our space
    program has generated thousands of inventions and spinoffs that have
    translated directly into the creation of tens of thousands of jobs
    right here in America. If we accept the Administration's plan, we will
    be abandoning a robust space program. They may protest that it is not
    abandonment, but that is exactly what it is. And, as a result we will
    lose these future benefits, and we will see China, Russia, India and
    others become the beneficiaries of a robust and superior space program.
        Countless products in our homes, offices, cars and airplanes owe
    their existence or widespread use to space exploration. Yet we often
    take for granted cell phones, GPS, carbon monoxide detectors, Velcro,
    lithium batteries, and advanced weather forecasting, just to name a
    few. We will be compromising advanced micro-gravity research. It is no
    doubt that our space program leads to cutting edge, high-skilled jobs
    and inspires the leaders of tomorrow to study Science, Technology,
    Engineering and Mathematics (STEM) fields. Among great human
    achievements, space exploration is inspiring in a way like no other.
        Under the current plan, NASA is betting our nations' entire space
    program on yet unproven commercial vendors. I am very supportive of
    commercial, but I am concerned about sole reliance on entrepreneurs for
    the short-term. NASA has taken the mistaken step of once again putting
    Russia in the critical path for our research on the International Space
    Station. We saw how this almost jeopardized the ISS from the very
    outset and raised the cost of the ISS.
        The Committee should also be aware that retiring the Shuttle will
    generate far less in savings that what has generally been believed.
    This is due to several factors. By abandoning the Shuttle prior to
    fulfilling our commitments to fly foreign astronauts to the ISS through
    2020, NASA will incur hundreds of millions in costs associated with
    purchasing seats for foreign astronauts on Russian vehicles--a price
    Russian Space Agency officials just said they would raise once they are
    the only game in town. Also, hundreds of millions of dollars in
    infrastructure costs will not turn into savings as many assume, but
    rather those costs will continue to recur but from an accounting
    perspective will be assigned to another account.
        According to the Augustine Committee, and information I have
    received from NASA, the annual cost of flying the Shuttle may cost up
    to about $1.3 billion for two flights per year. However, that cost can
    be cut significantly based on discussions with the contractors who
    currently operate the Shuttle for NASA. I would ask the Committee
    provide sufficient funding to allow up to two shuttle flights in Fiscal
    Year 2011 for the many reasons I have outlined for you. Thus, for a
    budget equal to a fraction of one percent of the stimulus, we can
    extend the Shuttle for one year and provide a smoother transition for
    our nation's space program and tens of thousands of dedicated workers.
        Furthermore, although the Shuttle's current manifest includes four
    remaining launches, NASA needs to act now to assure that even these
    missions are completed. NASA's current, inflexible policy on flying the
    Shuttle beyond calendar year 2010 jeopardizes the last scheduled
    Shuttle mission, which would transport the Alpha Magnetic Spectrometer
    (AMS) to ISS. It is my understanding that this mission may not be ready
    until spring of 2011, beyond NASA's arbitrary deadline. Fully funding
    Shuttle operations through FY 2011 will not only provide for smoother
    transition, but it will ensure that our commitments to our
    international partners regarding the AMS are fully met. Absent the
    Shuttle, there is no means of getting AMS to the ISS. Let's also
    remember that Endeavor just completed its 24th mission. It was designed
    for 100 missions.
        In addition to extending Shuttle operations, the Committee should
    provide sufficient funding to continue with the Constellation program.
    It makes little sense to abandon Constellation given the investments
    already made and the termination costs estimated to be in the range of
    $2.5 billion. We had a successful test flight of the Ares 1-X rocket in
    October and are building on that success.
        Congress must act today to save our space program. The plan
    presented by the Administration has gaping holes and is not ready for
    prime time. They need to go back to the drawing board and the Congress
    needs to join with the voices of our nation's space pioneers like Gene
    Cernan, the last human to walk on the moon, who said last week, ``Now
    is the time for wiser heads in Congress to prevail. Now is the time to
    overrule * * * mediocrity. Now is the time to be bold, innovative and
    wise in deciding how we invest in the future of America.''
        We have a come a long way since Alan Shepard became the first
    American in space in 1961. I urge you, my colleagues, to work together
    to ensure that our 50 years of leadership in space is not abandoned.
    America is looking to us for leadership.

        Mr. Etheridge. I thank the gentleman for his comments that
    are well taken by this Committee, and appreciate it very much
    and it will be entered into the record.
        Mr. Posey. Thank you.
        Mr. Etheridge. Thank you. If the gentle lady from Illinois
    would like to go ahead we will move her up in the order since
    our previous speaker is not here. Mrs. Halvorson, you are
    recognized for five minutes.

       STATEMENT OF HON. DEBORAH HALVORSON, A REPRESENTATIVE IN
                  CONGRESS FROM THE STATE OF ILLINOIS

        Mrs. Halvorson. I appreciate that, Mr. Chairman. Thank you
    Mr. Chairman, Ranking Member Ryan, and Members of the Committee
    on the Budget for the opportunity to testify today regarding
    the budget resolution for fiscal year 2011.
        I just want to take a few minutes to talk about funding for
    the water infrastructure in the fiscal year 2011 budget.
        My district covers parts of eight counties in Illinois and
    includes urban, suburban, and rural communities. Whenever I am
    back in my district and visiting all of these communities, one
    of the issues I fear or hear--I fear I hear because it is all
    the same--I hear about most often is water infrastructure.
    Mayors and other local elected officials tell me about the
    urgent need to upgrade existing waterways and drinking water
    systems in their communities. So the need is especially urgent
    in smaller towns in the rural areas of my district.
        As Members of Congress it is our responsibility to stand up
    for the needs of our constituents and the communities we
    represent, and that is why there are most urgent needs.
        Water infrastructure is not a Democrat or a Republican
    issue, it is an area where we can come together across the
    aisle and deliver real results. My office receives more funding
    requests for water infrastructure than any other project. These
    projects include replacement of wastewater treatments plants
    and drinking water systems and installation and upgrade for
    collector sewers, storm sewers, and sewer pipes. The towns in
    my district urgently need to complete these projects, but lack
    financial resources to do so. That is why federal funding for
    water infrastructure is so critical.
        And I was pleased that the American Recovery and
    Reinvestment Act included $6 billion in total funding for the
    Clean Water and Drinking Water State Revolving Funds. These
    programs help states optimize or capitalize low interest loans
    to help the communities fund much needed water infrastructure
    improvements.
        Congress should build on the progress made by the Recovery
    Act by continuing to fund EPA's water infrastructure programs
    at robust levels.
        The President's fiscal year 2011 budget proposal increases
    funding for STAG by approximately 14 percent, but it reduces
    the budget authority for Clean Water SRF and Drinking Water SRF
    compared to fiscal year 2010 levels.
        So I urge the Committee on the Budget to at least maintain
    budget authority for these programs at 2010 levels, or even
    consider including an increase.
        While I understand the need to bring some fiscal discipline
    to our budget process, we can't ignore our country's
    infrastructure needs.
        So I look forward to working with you and making this
    happen. Thank you, Mr. Chairman, for allowing me to be here and
    thank you for considering my requests.
        [The prepared statement of Deborah Halvorson follows:]

     Prepared Statement of Hon. Deborah L. Halvorson, a Representative in
                      Congress From the State of Illinois

        Thank you Chairman Spratt, Ranking Member Ryan, and members of the
    Committee on the Budget for the opportunity to testify today regarding
    the Budget Resolution for Fiscal Year 2011.
        I want to take a few minutes to talk about funding for water
    infrastructure in the Fiscal Year 2011Budget.
        My district covers parts of eight counties in Illinois and includes
    urban, suburban, and rural communities.
        Whenever I'm back in my district and visiting all of these
    communities, one of the issues I hear about most often is water
    infrastructure.
        Mayors and other local elected officials tell me about the urgent
    need to upgrade aging wastewater and drinking water systems in their
    communities.
        The need is especially urgent in smaller towns in the rural areas
    of my district.
        My office receives more funding requests for water infrastructure
    than any other project.
        These projects include replacement of wastewater treatments plants
    and drinking water systems and installation and upgrade of collector
    sewers, storm sewers, and sewer pipes.
        The towns in my district urgently need to complete these projects,
    but lack the financial resources to do so.
        That's why federal funding for water infrastructure is so critical.
        I was pleased that the American Recovery and Reinvestment Act
    included $6 billion in total funding for the Clean Water and Drinking
    Water State Revolving Funds.
        These programs help states capitalize low interest loans to help
    communities fund much need water infrastructure improvements.
        Congress should build on the progress made by the Recovery Act by
    continuing to fund the EPA's water infrastructure programs at robust
    levels.
        The President's Fiscal Year 2011 Budget proposal increases funding
    for STAG by approximately 14%, but it reduces budget authority for
    Clean Water SRF and Drinking Water SRF compared to Fiscal Year 2010
    levels.
        I urge the Committee on the Budget to at least maintain budget
    authority for these programs at 2010 levels, or even consider including
    an increase.
        While I understand the need to bring some fiscal discipline to our
    budget process, we can't ignore our country's infrastructure needs.
        Failure to address them will result in public health hazards in
    communities in my district and throughout the country.
        It will also hinder the ability of these communities to attract new
    economic development.
        Robust investment in modern water infrastructure will help these
    communities provide a good quality of life and economic opportunity for
    their citizens.
        Chairman Spratt and Ranking Member Ryan, thanks again for your
    consideration of my input, I yield back the balance of my time.

        Mr. Etheridge. I thank the gentle lady for her testimony
    and certainly those are issues that are critical not only to
    her district but to this country.
        Mrs. Halvorson. Thank you.
        Mr. Etheridge. And with that the Committee will stand in
    recess.
        [Recess.]
        Mr. Etheridge. The Committee now resumes and we welcome the
    gentleman from California, the Chairman of the Veterans
    Committee, Mr. Filner, for such comments that he will make and
    you are recognized for five minutes.

    STATEMENT OF HON. BOB FILNER, A REPRESENTATIVE IN CONGRESS FROM
                        THE STATE OF CALIFORNIA

        Mr. Filner. Thank you, Mr. Chairman, and we appreciate of
    course the work that this committee does for all of us in the
    Congress.
        Our Committee, the Committee on Veteran's Affairs supports
    the President's historic budget request with an additional
    recommendation of $571 million for needed investments in VA
    infrastructure and to address concerns raised during our budget
    hearing last month.
        This year's budget, as you know, is the first submitted in
    accordance with the advanced appropriations legislation that
    was enacted last year, and that we all supported. The
    President's request for VA medical care, which was appropriated
    last year, requests $48.2 billion, an increase of 8.3 percent.
    This year's budget requests the same funding level for fiscal
    year 2011, and includes an estimate for VA medical care for
    fiscal year 2012 of an additional $2.8 billion above the levels
    of fiscal year 2011 levels.
        We recommend an additional $221 million for medical care in
    the Medical Facilities account to fund non-recurring
    maintenance at the levels that we had in fiscal year 2010
    levels.
        We are also recommending $60 million above the President's
    request in order to provide for increases due to biomedical
    inflation and to ensure that VA research receives the
    appropriated support it needs and does not need to rely on
    over-optimistic estimates of so-called third-party funding.
        For our construction accounts, the Committee is
    recommending an additional $165 million for Minor Construction,
    that is for projects under $10 million, and we recommend $90
    million for Grants for Construction of State Extended Care
    Facilities. This additional funding will help reduce the
    backlog of our Priority 1 projects, that is those high-priority
    projects where state monies are already in place, and we also
    recommend an additional $5 million for the Grants for
    Construction of State Veterans Cemeteries.
        In addition, we recommend an additional $12 million for the
    Inspector General, $18 million for additional vocational
    rehabilitation and employment counselors, and $3 million in
    additional funding for the Education division.
        Overall, the President's budget requests a total funding
    level of $60.3 billion, which is nearly an 8 percent increase
    over fiscal year 2010. We recommend a total funding level of
    $60.9 billion, and the Independent Budget, which is a budget
    put together by the various veteran service organizations as a
    way to have that outside input, has recommended slightly
    higher, $61.5 billion.
        And this is important, Mr. Chairman. Building on our
    commitment to increase investments to bolster VA construction
    and infrastructure spending, the Committee's Views and
    Estimates will also include a recommendation, sort of off
    budget, of an additional $700 million in infrastructure
    spending if Congress moves forward with a new round of
    legislation to address the economic crisis in jobs.
        This additional funding, I want to point out, would be
    targeted to projects already identified and almost shovel ready
    by the VA and meet current needs, and that is if we pass a
    stimulus bill. We have, I think, a very good already identified
    set of projects that could use, as we said so, $700 million.
        We support the President's budget with additional
    investment spending, and we also want to work closely with you
    of course and the Appropriations Committee as you move forward
    to ensure the fiscal year 2012 funding is sufficient.
        We thank you for all the work that you do on behalf of the
    Congress and the United States.
        [The prepared statement of Bob Filner follows:]

      Prepared Statement of Hon. Bob Filner, a Representative in Congress
                          From the State of California

         The Committee on Veterans' Affairs supports the
    President's historic budget request and recommends an additional $571
    million for needed investments in VA infrastructure and to address
    concerns raised during our budget hearing last month.
         This year's budget is the first submitted in accordance
    with the advance appropriations legislation that was enacted last year,
    and that we all supported.
         The President's request for VA medical care, which was
    appropriated last year, requests $48.2 billion, an increase of $3.7
    billion or 8.3%. This year's budget requests the same funding level for
    FY 2011 and includes an estimate for VA medical care for FY 2012 of an
    additional $2.8 billion above FY 2011 levels.
         The Committee is recommending an additional $221 million
    for medical care in the Medical Facilities account to fund non-
    recurring maintenance at FY 2010 levels.
         The Committee is also recommending $60 million above the
    President's request in order to provide for increases due to biomedical
    inflation and to ensure that VA research receives the appropriated
    support it needs and does not need to rely on over-optimistic estimates
    of third-party funding.
         For the VA's construction accounts, the Committee is
    recommending an additional $165 million for Minor Construction (which
    provides funding for projects costing less than $10 million). We
    recommend $90 million for Grants for Construction of State Extended
    Care Facilities. This additional funding will help reduce the backlog
    of Priority 1 projects (those high-priority projects where State monies
    are already in place). We also recommend an additional $5 million for
    the Grants for Construction of State Veterans Cemeteries.
         The Committee is also recommending an additional $12
    million for the Inspector General and $18 million for additional
    vocational rehabilitation and employment counselors and $3 million in
    additional funding for the Education division.
         Overall, the President's budget requests a total funding
    level (with collections) of $60.3 billion, a $4.3 billion increase over
    FY 2010 (a nearly 8% increase). The Committee is recommending a total
    funding level of $60.9 billion. The Independent Budget has recommended
    $61.5 billion
         Building on our commitment to increase investments to
    bolster VA construction and infrastructure spending, the Committee's
    Views and Estimates will also include a recommendation of an additional
    $700 million in infrastructure spending if Congress moves forward with
    a new round of legislation to address our economic crisis. This
    additional funding would be targeted to projects already identified by
    the VA and meet current needs.
         The Committee's recommendation supports the President's
    budget, adds additional investment spending and provides the VA the
    resources it needs in the coming year. We will also work closely with
    you and our colleagues on the Appropriations Committee as the process
    moves forward to ensure that FY 2012 funding is sufficient to meet the
    health care needs of veterans.
         The Committee's recommendation, and the President's
    budget, makes needed investments to VA's infrastructure and research
    efforts to improve health care quality and access while we take steps
    to ensure that the historic funding increases provided to veterans'
    programs since the start of the 110th Congress are spent wisely.
         Thank you, Mr. Chairman and Members of the Committee.

        Mr. Etheridge. Thank the gentleman. And as someone who
    represents your great post at Fort Bragg and Pope Field and a
    VA center rather adjacent to it, we thank you for your
    testimony, and certainly there is a great need for our men and
    women who are returning and those who have served this country
    over the years. Thank you, and we appreciate your testimony.
        Mr. Filner. Thank you, sir.
        Mr. Etheridge. We now would recognize the gentle lady from
    Ohio, Ms. Sutton, for five minutes. Thank you for being here
    this morning.

     STATEMENT OF HON. BETTY SUTTON, A REPRESENTATIVE IN CONGRESS
                         FROM THE STATE OF OHIO

        Ms. Sutton. Thank you, Mr. Chairman, for the opportunity to
    testify before the Budget Committee today. I am very proud to
    have served on the Budget Committee in 2007 in my first year of
    Congress, and I am pleased to join you today to speak about the
    budget issues of importance to Ohio's 13th Congressional
    District.
        The budget is a moral document that reflects the priorities
    and values of our nation, and the 2011 budget builds on the
    Recovery Act by focusing on long-term economic recovery and job
    creation, which is critically important to the people that I
    serve.
        Today I would like to discuss a few of the programs that
    are vital to those I represent.
        I urge the Committee to support the $420 million, the same
    level as enacted last year, for the Staffing for Adequate Fire
    and Emergency Response Grant Program, and $420 million for the
    Assistance to Firefighters Act Grants. Now more than ever these
    grant opportunities are important to prevent the layoffs of
    needed firefighters and to ensure that our fire departments
    will have the equipment necessary and the training necessary to
    keep us in our communities safe.
        And I support the President's request for an almost 50
    percent increase in community-oriented policing services, also
    known as COPS funding, which will add an additional 50,000
    police officers to our streets. Every day our first responders
    are in our communities providing essential services and keeping
    our families safe.
        We need a budget that recognizes, Mr. Chairman, the need
    for job creation that will provide funding for research and
    development and support programs to ensure that our workers
    have the education and skills necessary for the jobs of the
    future. And I support the President's increase of 6.4 percent
    for research and development.
        To give an example of how important this is to our district
    and to our future, the University of Akron is a world leader in
    polymer research, and now is the home of the nation's first
    bachelor's degree program in corrosion engineering, and the
    cost of corrosion in the United States is an astounding $260
    billion a year. That is right, we lose $276 billion a year to
    corrosion, and we can mitigate it thanks to the research and
    the investments that are going on in this area.
        Research investments in these areas lead to job creation,
    marketable technologies. And in the case of corrosion
    mitigation, immense savings for the U.S. government and
    taxpayers.
        With the Recovery Act the U.S. had made significant
    progress on battery materials, including the development of new
    lithium ion batteries, and we should continue to provide robust
    funding for advanced battery manufacturing in the United States
    to further help jump start a new multi-billion dollar industry
    which will provide great potential for those I represent.
        I also urge the Committee to support an additional $25
    million for the Advanced Technology Vehicles Manufacturing
    Incentive Program. This program provides low cost loans to auto
    companies for investments in engineering, component production,
    and the retooling of existing factories to manufacture new
    advanced technology vehicles such as hybrids, plug in hybrids,
    advance diesel and fuel cell cars. Clean energy means American
    jobs now and in the future. It is not a question of jobs or the
    environment, it is a question of jobs and the environment. We
    must take care of both.
        Manufacturing in the United States creates jobs, and I urge
    the Committee to fully fund the Manufacturing Extension
    Partnership. This program has helped create or retain over 419
    jobs in my district alone over the last four years, and it is
    the only national initiative to support, strengthen, and grow
    U.S. manufacturing.
        During these challenging economic times state and local
    organizations also need resources to invest in and expand
    economic opportunities for low income families, and the
    Community Development Block Grants provide those resources. I
    cannot stress enough the positive impact these grants have had
    in my congressional district, and I urge the Committee to
    support the President's request of $4.4 billion for the
    Community Development Fund.
        I am also pleased to support an increase of 20 percent
    since 2009 in funding for the Veterans Administration, and I
    support the President's request for $800 million in funding to
    help end veteran homelessness.
        I was inspired to go into public service by the work of
    Mitch Snyder who fought tirelessly to end homelessness for our
    veterans. No American, especially a veteran, should ever have
    to live without a roof over his head or her head. The nearly 1
    million veterans in Ohio and 24 million nationwide deserve
    nothing less than our full support, and I support the
    President's request of $5.2 billion for mental healthcare for
    veterans, an increase of 8.5 percent over the 2010 enacted
    level.
        Far too many of our servicemembers return from Iraq and
    Afghanistan with post traumatic stress disorder and traumatic
    brain injury. Taking care of our servicemembers, veterans and
    their families, especially in times of war, is of the utmost
    importance.
        And Americans need quality, affordable healthcare
    regardless of income, age, employment, gender, or pre-existing
    condition. In Ohio alone there are over 1.3 million people
    without health insurance, and since I was here last year that
    number has increased by 100,000 people. Our nation, our
    businesses, and our citizens cannot continue to function in our
    dysfunctional healthcare system, and as one who has served on
    this esteemed Committee I know it is difficult to balance the
    competing priorities before you, but I urge you, as you do so,
    keep the needs of working families in mind as you make those
    decisions. We cannot afford to turn our backs on hard-working
    Americans and those who want to work during these challenging
    economic times.
        Thank you for the opportunity to appear before you today,
    Mr. Chairman.
        Mr. Blumenauer [presiding]. Without objection the Committee
    stands in recess subject to the call of the Chair.
        [Recess.]
        Mr. Blumenauer. Mr. Walz, welcome.

     STATEMENT OF HON. TIM WALZ, A REPRESENTATIVE IN CONGRESS FROM
                         THE STATE OF MINNESOTA

        Mr. Walz. Thank you, Mr. Chairman, I appreciate the
    opportunity for being here. I wanted to thank you as the acting
    Chairman, Chairman Spratt, and Ranking Member Ryan for the work
    you do. Critically important and I personally, as a
    constituent, am happy for the work you do.
        I want to just mention a couple things. Last year I came
    and testified especially dealing with veterans' issues, and I
    will talk a little bit more in the future. Many, many good
    things are happening, even at a time of great economic
    distress. And I think about a year after I was here last time
    testifying watching the changes that we have made, just
    yesterday in my home State of Minnesota they released numbers,
    15,600 new jobs created in January. That is the largest
    increase in over five years.
        While things are not out of the woods yet, there are signs
    that things are starting to move in the right direction.
        This budget has to continue to balance our short-term focus
    on economic recovery, while at the same time bringing about
    long-term economic transformation that will put us back on a
    path of fiscal responsibility.
        I am personally encouraged by the comments the President
    has made in his budgets on both of these fronts, and I
    appreciate that he recognizes we need to make tough choices to
    get our house back in order.
        I want to take a minute to touch on something, it has
    become a hot topic nowadays, it is something that I have been
    concerned about quite a while, and I know this Committee has,
    and that is the issue of debt and deficit. I am pleased this
    year that we passed, and the President signed into law,
    statutory PAYGO. This was the same policy that was in effect
    the last time we had a balanced budget under President Clinton,
    and I believe it is a good first step.
        I am also pleased that the President's proposal saves $23
    billion in fiscal year 2011 by cutting or eliminating 120
    programs that aren't performing. It also invests increased
    oversight and accountability and reduces improper payments at
    all levels of government. This has the potential to save tens
    of billions of dollars.
        While I believe it is a good first step, I believe there is
    much more to be done. I believe the only way we will ever find
    solutions to the pressing and difficult question is to put our
    partisanship aside and work across the aisle to solve this,
    that is why I am pleased the President has established a
    bipartisan Deficit Commission.
        I would also like to personally thank Speaker Pelosi for
    her commitment to bringing these recommendations for a vote on
    the House floor, it is something I believe needs to be done.
    Ultimately, we can't wait to kick this one down the road and it
    needs to be solved now.
        The second thing I would like to touch on and thank this
    Committee and all of Congress, as a Member of the House
    Veterans' Affairs Committee and a 24 year veteran myself, the
    commitment that has been made over the past two congresses to
    providing the highest quality of care and access to our
    veterans is unprecedented. Anyone can stand around and say they
    support veterans and stand in front of them at ceremonies, but
    standing behind them fulfilling our moral obligation is
    something that this Congress is beginning to do.
        That budget is not just a fiscal document, it is a moral
    document, and it is never more true than with our veterans. I
    have consistently said I believe we need to balance our budget.
    We can't do it on the backs of veterans.
        The President's proposal continues the recent record of
    strong funding for our veterans and improved access to care. It
    continues our investment ensuring that soldier's transition
    seamlessly from the DoD to the VA when they return home, and
    makes sure the VA works more efficiently for future
    generations.
        I am looking forward to continuing to work with Secretary
    Shinseki and Gates to make sure that our servicemen and women
    can get the best care possible.
        One area that we could be doing more is in the VA Office of
    the Inspector General. The VA's OIG has the weakest oversight
    of any agency due to the lack of funding. At the same time
    every one dollar that the OIG spends it nets $38 in savings
    through reducing fraud, waste, and abuse. If we could plus up
    that budget making sure the OIG had the resources necessary, we
    will make sure that the resources this Congress puts forward
    will be delivered towards veterans.
        Again, Mr. Chairman, I thank you for the work you do in
    this Committee, look forward to working with colleagues on
    tackling this, and I am absolutely convinced that this budget
    is going in the right direction. Thank you.
        [The prepared statement of Tim Walz follows:]

        Prepared Statement of Hon. Timothy J. Walz, a Representative in
                      Congress From the State of Minnesota

        Chairman Spratt, Ranking Member Ryan, members of the Committee on
    the Budget, thank you for the opportunity to testify here today. I
    appreciate the very important work that you do and I am honored to be
    able to contribute in a small way today by sharing with you some of the
    issues that are important to me and that I am focused on this year.
        Last year, I commented that Congress was crafting and considering a
    budget in the midst of the worst economic crisis in a generation. Now,
    a year later, we are starting to see signs of economic recovery. Just
    yesterday, my home state of Minnesota that we've created 15,600 jobs in
    January, the largest increase since 2005 and our unemployment rate
    continues to drop.
        These are all encouraging signs, but we are not out of the woods
    yet.
        This budget has to continue to balance our short term focus on
    economic recovery, while at the same time bringing about a long-term
    economic transformation that will put us back on the path to fiscal
    responsibility. I am encouraged by the commitments the President's
    budget makes on both of these fronts and I appreciate that he
    recognizes that we need to make tough choices to get our fiscal house
    back in order.
        I want to take a minute to touch on something that has become a
    very hot topic in Washington these days, but something that I have been
    concerned about for quite some time and that is our debt and deficit.
        I am pleased that this year, we passed and the President signed
    into law statutory PAY-GO.
        This was the same policy that was in effect the last time we had a
    balanced budget under President Clinton and I believe it is a good
    first step to put us back on the road to fiscal discipline.
        I am also pleased that the President's proposal saves $23 billion
    in Fiscal Year 2011 by cutting or eliminating 120 programs that just
    are not smart investments. It also invests in increased oversight and
    accountability to reduce improper payments at all levels of government.
    This has the potential to save taxpayers tens of billions of dollars
    per year.
        While I believe these are all good first steps, I believe we will
    have to do more. I believe the only way we will ever find solutions to
    this pressing and difficult issue is to put partisanship aside and work
    across the aisle to make hard, but necessary choices.
        That is why I am pleased the President has established a bi-
    partisan Deficit Commission. I have personally asked Speaker Pelosi to
    commit to bringing the recommendations the commission gives us to a
    vote on the House floor and I am please she has done so.
        Ultimately, we cannot wait for our kids and our grandkids to solve
    this problem. When I think about my own kids and the students I taught
    at Mankato West High School, I know we cannot just kick the can down
    the road.
        The second thing I want to touch on is veterans' issues. As a
    member of the House Veterans' Affairs Committee and a 24-year veteran
    myself, ensuring that our veterans have access to the highest quality
    benefits and care is one of my top priorities.
        Of course, anyone can say they support veterans but looking at our
    funding priorities is how you tell whether we're putting out money
    where our mouth is and fulfilling our moral obligation to our veterans.
    Our budget is not just a fiscal document, it is a moral document and
    that is especially true when we are talking about our nation's
    veterans.
        I have consistently said that while I believe we need to balance
    our budget, we must not do it on the backs of our veterans.
        The President's proposal continues the recent record of strong
    funding for our veterans community to improve access to care and
    eliminate the claims backlog. It continues our investment in ensuring
    that soldier's transition seamlessly from DOD to the VA when they
    return home and that the VA works more efficiently for future
    generations. I am looking forwarding to continuing to work with
    Secretary Shinseki and Secretary Gates to make sure that our servicemen
    and women get the best possible care.
        One area where we could be doing more is with VA Office of the
    Inspector General. VA's OIG has the weakest oversight to agency staff
    ration in the federal government. At the same time, every $1 spent on
    the OIG nets $38 in savings through reducing waste, fraud, and abuse.
    By investing more in OIG, we could not only make the VA more efficient,
    but we could free up additional funding to ensure that we fulfill our
    responsibility to those who have put their lives on the line in service
    our country.
        Thank you again for the opportunity to testify here today and thank
    you again for the work you are doing on behalf of our country.

        Mr. Blumenauer. Thank you. Deeply appreciate your time and
    your testimony. Congressman McMahon.

    STATEMENT OF HON. MICHAEL McMAHON, A REPRESENTATIVE IN CONGRESS
                       FROM THE STATE OF NEW YORK

        Mr. McMahon. Thank you, Mr. Chairman, and I want to thank
    you for providing me this opportunity to testify before you
    today. And I want to give you a special thanks and also to
    Chairman Spratt for your continued leadership and your work to
    help get us back on a path towards fiscal responsibility
    through your work here on the Budget Committee.
        As you know, Mr. Chairman, I have been an outspoken
    advocate for addressing the mental health needs of our
    returning soldiers, all of our returning warriors. The brave
    men and women in our armed forces continue to be placed in
    harm's way in Iraq, Afghanistan, and other foreign theaters.
    And we know that the least we can do to thank these brave
    warriors, the sailors, the airmen, the soldiers, the marines,
    is to take care of them when they get home.
        I applaud the President's latest budget for taking steps in
    addressing the needs of our veterans' mental health, but it
    doesn't go far enough. In December 2009, I, along with my good
    friend Congressman Tom Rooney, sent a letter to the President
    recommending a $750 million increase in veterans' mental health
    funding for fiscal year 2011.
        I come here today, Mr. Chairman, to urge this Committee to
    incorporate in your budget resolution an increase in support
    for veterans' mental health by $750 million above what was
    allocated by the Congress in fiscal year 2010, and to work with
    the appropriators to accomplish this critical funding level.
        Over the last year, I have worked closely with the
    Administration to promote better healthcare for our
    servicemembers, including improved mental health counseling and
    a targeted response by the United States Department of Defense
    to deal with the record numbers of suicides by active duty
    servicemembers. President Obama, The Department of Defense, and
    the Department of Veterans' Affairs have all stated that the
    mental health of our vets is one of their top priorities.
        My first piece of legislation in Congress was H.R. 1308
    that we introduced, the Veterans' Mental Health Assessments and
    Screenings Act. This bill mandates in person post-deployment
    mental health screenings for all servicemembers returning from
    active duty to defeat the stigma of seeking help for Post
    Traumatic Stress Disorder and Traumatic Brain Injury.
        Despite the wide, bipartisan support this bill received and
    its inclusion in the fiscal year 2010 Defense Authorization,
    the rates of suicide are growing.
        As Members of Congress, we have unfortunately become
    accustomed to hearing about the lack of assistance our
    servicemen and women receive as they silently suffer from
    invisible injuries such as PTSD and TBI. Last year there were
    over 340 active duty and reservist suicides; we lost more
    veterans to suicides in 2009 than we lost men and women in
    combat. This is a disgrace, Mr. Chairman. It is unacceptable to
    those who lay their lives on the line for our country, to their
    families, and ultimately to the American people, and this
    problem will only get worse as tens of thousands of our troops
    come home from Iraq and Afghanistan in the next few years.
        We worked to secure additional support for mental health
    funding in last year's defense budget, increased the mental
    health force in the military, and formed the Invisible Injuries
    Caucus to get our colleagues more involved on these issues, but
    we have been told time and time again that the main obstacle
    that stands in the way of bringing down the rate of solider
    suicides is the need for additional resources from Congress to
    hire more mental health professionals for screenings and
    treatments.
        Increased funding will allow the Department of Defense to
    move away from numerous pilot programs and provide a consistent
    and comprehensive post deployment screening program
    administered by trained mental health professionals.
        I commend the Administration for showing a commitment to
    our active duty Members with their fiscal year 2011 budget
    request that focuses on overhauling the transition process from
    the military to civilian life.
        The President's proposal will provide some funds for our
    local VA hospitals and equip them with resources and staff to
    address veterans' needs. It also will help expand inpatient,
    residential, and outpatient mental health programs with an
    emphasis on integrating mental health services with primary and
    specialty care. But with two active wars, the mental health
    needs of our vets are growing so fast that the President's
    proposal barely scratches the surface on giving our vets the
    care they so rightfully have earned and deserve.
        The additional $750 million I am requesting now will allow
    the DoD and VA to be proactive in screening for PTSD and
    intervening early on in order to prevent chronic problems and
    reduce the skyrocketing rate of soldier suicides.
        Through all of this, I think we can agree that prevention
    is the key, so I look forward to crafting an enhanced suicide
    prevention campaign targeted at educating active duty members,
    veterans and their families. Education is the only way we can
    reduce the stigmas associated with seeking help with mental
    injuries. It is one of our most solemn obligations as Members
    of Congress to improve the lives of the men and women who have
    sacrificed so much for our country.
        Our budget is a statement about priorities. As you prepare
    the budget resolution, Mr. Chairman, that will guide the debate
    in the months ahead, I urge you to increase the budget by $750
    million to fund veterans' mental health. Our servicemen and
    women have defended their country with honor and we owe them
    the best benefits and services available.
        I thank you for your attention and for your dedication in
    putting together that list of priorities so important for our
    Nation known as our budget.
        Thank you, sir.
        [The prepared statement of Michael McMahon follows:]

      Prepared Statement of Hon. Michael E. McMahon, a Representative in
                      Congress From the State of New York

        Chairman Spratt, Ranking Member Ryan, thank you for providing this
    opportunity for me to testify before you today. I would like to offer a
    particular thank you to Chairman Spratt for your continued leadership,
    and your work to help get us back on a path towards fiscal
    responsibility.
        As you know, I have been an outspoken advocate for addressing the
    mental health needs of our returning soldiers. The brave men and women
    in our armed forced continue to be placed in harm's way in Iraq,
    Afghanistan, and other foreign theaters. And we know that the least we
    can do to thank these brave soldiers, sailors, airmen, marine is to
    take care of them when they get home.
        I applaud the President's latest budget for taking steps in
    addressing the needs of our veterans' mental health. But it doesn't go
    far enough. In December 2009, I, along with my good friend Congressman
    Tom Rooney, sent a letter to the President recommending a $750 Million
    increase in veterans' mental health funding for FY 2011.
        I come here today to urge this committee to incorporate in your
    budget resolution, an increase in support for Veterans' Mental health
    by $750 million above what was allocated by the Congress in FY 2010,
    and to work with the appropriators to accomplish this critical funding
    level.
        Over the last year, I have worked closely with the Administration
    to promote better healthcare for our service members, including
    improved mental health counseling and a targeted response by the United
    States Department of Defense to deal with the record numbers of
    suicides by active duty service members. President Obama, The
    Department of Defense, and the Department of Veterans' Affairs have all
    stated that the mental health of our vets is one of their top
    priorities.
        My first piece of legislation in Congress was HR 1308, the
    Veterans' Mental Health Assessments and Screenings Act. This bill
    mandates in person post-deployment mental health screenings for ALL
    service members returning from active duty to defeat the stigma of
    seeking help for Post Traumatic Stress Disorder (PTSD) and Traumatic
    Brain Injury (TBI).
        Despite the wide, bi-partisan support this bill received and its
    inclusion in the FY10 Defense Authorization, the rates of suicide are
    growing.
        As members of Congress, we have unfortunately become accustomed to
    hearing about the lack of assistance our service men and women receive
    as they silently suffer from invisible injuries such as PTSD and TBI.
        Last year, there were over 340 active-duty and reservist suicides;
    we lost more veterans to suicides in 2009 than we lost men and women in
    combat.
        This is a disgrace. It is unacceptable to those who lay their lives
    on the line for our country, to their families and, ultimately to the
    American people.
        And this problem will only get worse as tens of thousands of our
    troops come home from Iraq and Afghanistan in the next few years.
        We worked to secure additional support for mental health funding in
    last year's defense budget, increased the mental health force in the
    military and formed the Invisible Injuries Caucus to get our colleagues
    more involved on these issues.
        But we have been told time and time again that the main obstacle
    that stands in the way of bringing down the rate of solider suicides is
    the need for additional resources from Congress to hire more mental
    health professionals.
        Increased funding will allow the DoD to move away from numerous
    ``pilot programs'' and provide a consistent and comprehensive post
    deployment screening program administered by trained mental health
    professionals.
        I commend the administration for showing a commitment to our active
    duty service members with their FY2011 budget request that focuses on
    overhauling the transition process from the military to civilian life.
        The President's proposal will provide some funds for our local VA
    hospitals and equip them with resources and staff to address veterans'
    needs. It also will help expand inpatient, residential, and outpatient
    mental health programs with an emphasis on integrating mental health
    services with primary and specialty care.
        But with two active wars, the mental health needs of our vets are
    growing so fast that the President's proposal barely scratches the
    surface on giving our vets the care they so rightfully have earned and
    deserve.
        The additional $750 I am requesting now will allow the DoD and VA
    to be proactive in screening for PTSD and intervening early on in order
    to prevent chronic problems and reduce the skyrocketing rate of soldier
    suicides.
        Through all of this, I think we can agree that prevention is the
    key, so I look forward to crafting an enhanced suicide prevention
    campaign targeted at educating active duty members, veterans and their
    families. Education is the only way we can reduce the stigmas
    associated with seeking help with mental injuries.
        It is one of our most solemn obligations as Members of Congress to
    improve the lives of the men and women who have sacrificed so much for
    our country. Our budget is a statement of our priorities.
        As you prepare the budget resolution that will guide the debate in
    the months ahead, I urge you to increase the budget by $750 million to
    fund veterans' mental health. Our service men and women have defended
    their country with honor and we owe them the best benefits and services
    available.
        Thank you again for the opportunity to testify.

        Mr. Blumenauer. Thank you. We deeply appreciate your time
    and your insights.
        Mr. McMahon. Likewise.
        Mr. Blumenauer. Congressman Tonko.
        Mr. Tonko. Chairman Blumenauer.
        Mr. Blumenauer. How are you?
        Mr. Tonko. Very well, thank you.
        Mr. Blumenauer. Welcome.

    STATEMENT OF HON. PAUL TONKO, A REPRESENTATIVE IN CONGRESS FROM
                         THE STATE OF NEW YORK

        Mr. Tonko. Thank you very much. Chairman Blumenauer, I want
    to thank you for offering me this opportunity to speak here
    this afternoon. I represent the twenty first Congressional
    District of New York, also known as the Capital Region. The
    area is home to many towns which saw a boom during the first
    industrial revolution. However, since those times, we have seen
    a dwindling population in response to more and more companies
    closing or moving overseas.
        In recent years, one of our prime focuses has been
    promoting research companies and funding to help revive the
    Capital Region and all of Upstate New York. Even with the
    recent revival, we still have work to do when it comes to
    transforming our region back into an innovation powerhouse, as
    it was when GE was founded in Schenectady, NY or ``the electric
    city.''
        To successfully accomplish this goal, we must see
    additional federal funding in the areas of energy, of
    infrastructure, of community development, and certainly of
    public health programs. It is time that Washington fully
    invests in the sciences and works to truly promote an energy
    agenda. It is often quoted that ``a crisis is a terrible thing
    to waste.''
        Mr. Chair, we have a crisis in this country. Our country's
    energy system is in shambles and it is time for us to lay out
    the blueprint for a bold new vision here in the United States.
        I believe that the budget should do much more to provide
    funding to the Department of Energy to increase funding for
    research, development, demonstration and deployment of energy
    efficiency, renewable energy, smart grid, and advanced vehicle
    technologies.
        I would recommend that the House budget resolution include
    robust funding for Function 270, consistent with the
    President's budget proposal. We need to drill and mine energy
    efficiency like we currently drill for oil and mine for coal;
    investment focused on demand-side energy solutions rather than
    simply through supply-side, which can be carried out by
    increased funding in areas such as the Energy Efficient Block
    Grant Program.
        As we did during the Space Race so many years ago, we must
    turn towards innovation and leadership on the energy front to
    lead the world again. We can effectively become the standard
    bearer in energy policy and energy sources by ensuring that we
    increase funding for research and development to put
    investments towards advanced energy programs, including
    advanced battery and storage programs.
        For decades, upstate urban cores in New York State, once
    the center of bustling economic and manufacturing activity,
    have been slowly eroding away. Urban areas in my congressional
    district, such as Albany, Troy, Schenectady, and Amsterdam, to
    name a few, served as the engine for our upstate's economy and
    growth. However, for decades these cities have sat in a state
    of disrepair as the population moves away and businesses have
    dwindled.
        For the sake of our economy, environment,and the
    preservation of culture and architecture, we must commit
    funding to rebuild our aging infrastructure and funding to
    preserve our most historical places.
        Water and sewer infrastructure investments are crucial to
    redevelop our urban centers. Many of the towns in my district
    have water and sewer infrastructure which is over 80 years old.
    For safety, security, and developmental needs, it is critical
    that we replace these systems. Local taxpayers cannot bear the
    entire burden of upgrading this essential infrastructure. Many
    are living in communities that have seen a declining tax base.
    New systems encourage both economic and population growth in
    urban areas that would then rebuild that declining tax base.
        Besides rebuilding aging infrastructure in our urban areas
    we must also preserve sites that are historically significant.
    Doing so will increase community spirit as well as generate
    much needed tourism dollars.
        A new U.S. Cultural and Heritage Tourism Marketing Council
    and the U.S. Department of Commerce study revealed that
    cultural heritage travelers contribute more than $192 billion
    annually to the United States economy.
        That is why for the fiscal year 2011 budget I support
    increased funding for the National Heritage Area Program
    through the Heritage Partnership Program of the National Park
    Service. Increased funding, which is at least equal to last
    year's level would preserve the ability of the National
    Heritage Areas to continue their work to sustain partnerships
    that foster job creation and economic, cultural, historic,
    environmental, and community development.
        In addition to providing increased funding for fiscal year
    2011, I want to take this time to encourage my colleagues in
    Congress to work with me to find additional revenue streams for
    these vital programs, ongoing revenue streams that will provide
    stability and certainty to the work they do.
        I also ask that the committee reject the language in the
    President's fiscal year 2011 budget proposal as it would impose
    stifling limitations on NHAs, the Heritage Areas.
        Most alarming is the language that would change the current
    distribution of funds used to support all 49 congressionally
    authorized National Heritage Areas by eliminating support to 22
    of them.
        I also consider the arts a very important part of not only
    the education of our children, but also our American cultural
    fabric. This sector of the economy has traditionally been
    supported by philanthropic donations, as well as by state and
    federal dollars. Unfortunately, because of the economic
    downturn, many art programs have seen their donations plummet,
    forcing them to lay off employees and reduce services.
        This is why I ask that Congress respectfully increase
    support for the Office of Museum Services within the Institute
    of Museum and Library Services program. Museums are a vital
    part of our communities and our educational infrastructure.
    Each year museums provide more than 18 million instructional
    hours to schoolchildren and educators and spend more than $14.5
    billion in their communities. They are economic engines
    employing more than a half million Americans, spurring local
    tourism and contributing to the cultural fabric of our nation.
        Lastly, we must increase federal funding for the Community
    Mental Health Services Block Grant, which is the single largest
    federal funding source for mental health programs. It is
    dedicated to improving state and local mental health safety net
    systems and serves over 6 million Americans each year. In these
    difficult economic times more Americans are losing their health
    insurance coverage and more states are facing major deficits
    and impending budget cuts. Adults and children with mental
    health issues are accessing the public mental healthcare system
    in greater numbers, and state mental health authorities are
    reporting an increased demand for their services. At the same
    time, many states are being forced to cut mental healthcare
    funding because of the economic downturn.
        Just as we should make federal investments into programs
    that can improve our economy, we must also make investments
    into programs that improve the health of our nation and her
    people.
        Again, I want to thank you Chairman, and the entire
    committee, for the opportunity to allow me to come before you
    today and present some of my highest priorities.
        Thank you.
        [The prepared statement of Paul Tonko follows:]

    Prepared Statement of Hon. Paul D. Tonko, a Representative in Congress
                           From the State of New York

        Chairman Spratt, Ranking member Ryan, respected members of the
    committee, I want to sincerely thank you for giving me the opportunity
    to speak here today. I represent the twenty first congressional
    district of New York, also known as the Capital Region. The area is
    home to many towns which saw a boom during the first industrial
    revolution. However, since those times, we have seen a dwindling
    population in response to more and more companies closing or moving
    overseas. In recent years, one of our prime focuses has been promoting
    research companies and funding to help revive the Capital Region and
    all of Upstate New York.
        Even with the recent revival, we still have work to do when it
    comes to transforming our region back into an innovation powerhouse, as
    it was when GE was founded in Schenectady, NY or ``the electric city.''
    To successfully accomplish this goal, we must see additional federal
    funding in the areas of energy, infrastructure, community development,
    and public health programs.
        It is time that Washington fully invests in the sciences and works
    to truly promote an energy agenda. It is often quoted that ``a crisis
    is a terrible thing to waste.'' Mr. Chairman, we have a crisis in this
    country. Our country's energy system is in shambles and it is time for
    us to lay out the blueprint for a bold new vision here in the United
    States.
        I believe that the budget should do much more to provide funding to
    the Department of Energy to increase funding for research, development,
    demonstration and deployment of energy efficiency, renewable energy,
    smart grid, and advanced vehicle technologies. I would recommend that
    the House Budget Resolution include robust funding for Function 270--
    consistent with the President's budget proposal.
        We need to drill and mine energy efficiency like we currently drill
    for oil and mine for coal; investment focused on demand-side energy
    solutions rather than simply through supply-side, which can be carried
    out by increased funding in areas such as the Energy Efficient Block
    Grant Program.
        As we did during the Space Race so many years ago, we must turn
    towards innovation and leadership on the energy front to lead the world
    again. We can effectively become the standard bearer in energy policy
    and energy sources by ensuring that we increase funding for Research &
    Development to put investments towards advanced energy programs--
    including advanced battery and storage programs.
        For decades, upstate urban cores, once the center of bustling
    economic and manufacturing activity, have been slowly eroding away.
    Urban areas in my district, such as Albany, Troy, Schenectady and
    Amsterdam, to name a few, served as the engine for our upstate's
    economy and growth. However, for decades these cities have sat in a
    state of disrepair as the population moves away and businesses have
    dwindled. For the sake of our economy, environment and the preservation
    of culture and architecture, we must commit funding to rebuild our
    aging infrastructure and funding to preserve our most historical
    places.
        Water and sewer infrastructure investments are crucial to redevelop
    our urban centers. Many of the towns in my district have water and
    sewer infrastructure which is over 80 years old. For safety, security
    and developmental needs, it is critical that we replace these systems.
    Local taxpayers cannot bear the entire burden of upgrading this
    essential infrastructure. New systems encourage both economic and
    population growth in urban areas.
        Besides rebuilding aging infrastructure in our urban areas, we must
    also preserve sites that are historically significant. Doing so will
    increase community spirit as well as generate much needed tourism
    dollars. A new U.S. Cultural and Heritage Tourism Marketing Council and
    the U.S. Department of Commerce study revealed that cultural heritage
    travelers contribute more than $192 billion annually to the U.S.
    economy.
        That is why for the fiscal year 2011 budget I support $18 million
    for the National Heritage Area Program through the Heritage Partnership
    Program of the National Park Service (NPS). This funding, which is
    equal to last year's level, would preserve the ability of the National
    Heritage Areas (NHAs) to continue their work to sustain partnerships
    that foster job creation and economic, cultural, historic,
    environmental, and community development. I also ask that the committee
    reject the language in the President's FY 2011 budget proposal as it
    would impose stifling limitations on NHAs. Most alarming is the
    language that would change the current distribution of funds used to
    support all 49 congressionally authorized National Heritage Areas by
    eliminating support to 22 of them.
        I also consider the arts a very important part of not only the
    education of our children, but also our American culture. This sector
    of the economy has traditionally been supported by philanthropic
    donations, as well as by state and federal dollars. Unfortunately,
    because of the economic downturn, many art programs have seen their
    donations plummet, forcing them to lay off employees and reduce
    services. This is why I ask that Congress increase support for the
    Office of Museum Services (OMS) within the Institute of Museum and
    Library Services (IMLS) program.
        Museums are a vital part of our communities and educational
    infrastructure. Each year, museums provide more than 18 million
    instructional hours to schoolchildren and educators and spend more than
    $14.5 billion in their communities. They are economic engines--
    employing more than a half million Americans, spurring local tourism
    and contributing to the cultural fabric of our nation.
        Lastly, we must increase federal funding for the Community Mental
    Health Services Block Grant (CMHSBG), which is the single largest
    federal funding source for mental health programs. It is dedicated to
    improving state and local mental health safety net systems and serves
    over six million Americans each year.
        In these difficult economic times, more Americans are losing their
    health insurance coverage, and more states are facing major deficits
    and impending budget cuts. Adults and children with mental health
    issues are accessing the public mental health care system in greater
    numbers, and state mental health authorities are reporting an increased
    demand for their services. At the same time, many states are being
    forced to cut mental health care funding because of the economic
    downturn. Just as we should make federal investments into programs that
    can improve our economy, we must also make investments into programs
    that improve the health of our nation.
        Again, I want to thank Chairman Spratt, Ranking Member Ryan and the
    rest of the committee for allowing me to come in today.

        Mr. Blumenauer. We appreciate your presentation and your
    thoughtfulness, it is very helpful.
        Mr. Tonko. Thank you, Chairman.
        Mr. Blumenauer. Congressman Quigley.

     STATEMENT OF HON. MIKE QUIGLEY, A REPRESENTATIVE IN CONGRESS
                       FROM THE STATE OF ILLINOIS

        Mr. Quigley. Thank you, Mr. Chairman. Never been on this
    side of pushing the buttons.
        I want to thank the Chairman and Members of the committee
    for the opportunity to testify today.
        Our nation is on an unsustainable fiscal path. Taking into
    account widely expected policy changes the CBO projects that by
    2035 the public debt will be almost twice the amount of our
    entire GDP. By 2050 it projects that the public debt will be
    more than three times the amount of GDP. While there are those
    who hold great disdain for our government, I think that our
    government's mission matters. Government can improve people's
    lives and keep them safe. Government's mission matters and that
    is precisely why our national debt is so troubling.
        If we can't get our finances in order how can we ask
    taxpayers to trust us with their hard earned dollars? How can
    we ask taxpayers to tighten their belts when your balance sheet
    is so unbalanced?
        To earn the public's trust, our government needs to be more
    transparent, more accountable, and more honest, and it all
    begins with our budget. We need to fix the short side of
    accounting that massively underestimates the cost of spending
    programs. The ten-year budget window is too easily gamed. A
    measure for which costs escalate in year 2011 can be called
    budget neutral while it was not.
        We need to consider the net present value of spending
    measures that escalate in cost outside the budget window. We
    also need to adopt accrual, a standard for private business as
    well as state and local governments. Like what is done in the
    financial report of the U.S.
        By taking into account the promises made yesterday to spend
    tomorrow we can provide a more accurate picture of our fiscal
    position.
        If Greece were obligated to use full and honest accounting
    to budget its 2001 currency swap deal with Goldman Sachs it
    would not have been able to hide its deteriorating finances
    behind an upfront payment on the exchange.
        Similar budgetary gimmickry here at home prevents us from
    properly evaluating our own finances. We also need to expand
    the scope of the budget to include implicit government
    guarantees of GSEs like Fannie Mae and Freddie Mac, as well as
    other financial exposures. We need to bring tax expenditures
    onto the federal budget by recording them as simultaneous
    collections and outlays. Only by capturing the scope of tax
    expenditures, nearly $1.2 trillion in redistributed revenue,
    can we gain an honest and accurate picture of government.
        These are only the first steps, but unless we reinvent the
    way government does business and get our finances in order we
    won't be nearly as successful in achieving our other
    priorities.
        Finally, we need debt reduction targets in place to
    demonstrate our seriousness about tackling the debt problem.
    Even if we can't agree on how to reduce our debt to GDP ratio,
    we should all come to a consensus on achievable targets.
        That is why next week I am introducing a ``Sense of the
    House'' Resolution establishing sustainable debt and deficit
    targets. I urge you to join me in co-sponsoring this
    resolution, especially if you believe that government's mission
    matters. The best way to achieve better healthcare coverage or
    a stronger national defense is to restore the public's trust in
    government, and that means making government more transparent,
    more accountable, and more honest.
        Again, thank you for your time.
        [The prepared statement of Mike Quigley follows:]

     Prepared Statement of Hon. Mike Quigley, a Representative in Congress
                           From the State of Illinois

        Mr. Chairman--thank you for the opportunity to testify today.
        Our nation is on an unsustainable fiscal path.
        Taking into account widely expected policy changes, the CBO
    projects that by 2035 the public debt will be almost twice the amount
    of our entire GDP.
        By 2050, it projects that the public debt will be more than three
    times the amount of GDP.
        While there are those who hold great disdain for our government--I
    believe that government's mission matters.
        Government can improve people's lives and keep them safe.
        Government's mission matters, and that's precisely why our national
    debt is so troubling.
        If we can't get our finances in order, how can we ask taxpayers to
    trust us with their hard-earned dollars?
        How can we ask taxpayers to tighten their belts when our balance
    sheet is so unbalanced?
        To earn the public's trust, our government needs to be more
    transparent, more accountable, and more honest.
        And it all begins with our budget.
        We need to fix the short-sighted accounting that massively
    underestimates the cost of spending programs.
        The 10 year budget window is too easily gamed--a measure for which
    costs escalate in year 11 can be called budget neutral, but it is not.
        We need to consider the net present value of spending measures that
    escalate in cost outside the budget window.
        We also need to adopt accrual accounting--the standard for private
    business as well as state and local governments, and what's used in the
    Financial Report of the U.S.
        By taking into account the promises made yesterday to spend
    tomorrow, we can provide a more accurate picture of our fiscal
    position.
        If Greece were obligated to use full and honest accounting to
    budget its 2001 currency swap deal with Goldman Sachs, it wouldn't have
    been able to hide its deteriorating finances behind an upfront payment
    on the exchange.
        Similar budget gimmickry here at home prevents us from properly
    evaluating our own finances.
        We also need to expand the scope of the budget to include implicit
    government guarantees of GSEs like Fannie Mae and Freddie Mac, as well
    as other fiscal exposures.
        And we need to bring tax expenditures onto the federal budget--by
    recording them as simultaneous collections and outlays.
        Only by capturing the scope of tax expenditures--nearly $1.2
    trillion in redistributed revenue--can we gain an honest and accurate
    picture of government.
        These are only first steps.
        But unless we reinvent the way government does business and get our
    finances in order, we won't be nearly as successful in achieving our
    other priorities.
        Finally, we need debt reduction targets in place--to demonstrate
    our seriousness about tackling the debt problem.
        Even if we can't all agree on how to reduce our debt to GDP ratio,
    we should all come to a consensus on achievable targets.
        That's why, next week, I'm introducing a ``Sense of the House''
    resolution establishing sustainable debt and deficit targets.
        I urge you to join me in cosponsoring this resolution, especially
    if you believe that government's mission matters.
        The best way to achieve better health care coverage or a stronger
    national defense is to restore the public's trust in government--and
    that means making government more transparent, accountable, and honest.
        Thank you for your time.

        Mr. Blumenauer. Thank you. Great observations and we
    appreciate you joining us. Congressman McGovern.

    STATEMENT OF HON. JAMES McGOVERN, A REPRESENTATIVE IN CONGRESS
                    FROM THE STATE OF MASSACHUSETTS

        Mr. McGovern. Thank you very much. And Mr. Chairman, I want
    to thank the committee for this opportunity to testify about
    the fiscal year 2011 budget resolution.
        As a member of the Budget Committee, I understand the
    difficult fiscal and budgetary constraints facing us this year
    and in the immediate future. It is important, therefore, that
    we outline clearly in the budget resolution the most important
    priorities for our country and its economic recovery, and for
    our people, especially those who are most vulnerable.
        Mr. Chairman, as you know, I am committed to ending hunger
    in America and around the world. I believe we can end hunger,
    but we haven't yet mustered the political will to do so.
        We need to fully fund the President's Global Food Security
    Initiative, and that means robust funding for the International
    Affairs 150 account. Domestically, despite the budgetary
    difficulties facing us, increasing funding for programs like
    school breakfasts and lunches, and after school and summer
    meals is something we simply must do. It is an investment in
    the health of our nation, not just the physical health of our
    citizens, but our economic health. Hunger and poor nutrition
    among children translates into lost productivity and
    significant healthcare costs throughout the lifetime of an
    adult.
        Mr. Chairman, we need to take dramatic action and address
    the growing number of children who rely on discounted and free
    meals during the school year and summer months.
        I commend President Obama for including a $1 billion
    increase in funding for the Child Nutrition Programs in his
    fiscal year 2011 budget. It is a bold step, it is a necessary
    step if we are indeed going to provide more breakfasts, more
    after school snacks, and more summer meals to children.
        Along with expanding these programs so they reach currently
    eligible children, we must also focus on improving the
    nutritional quality of the food served at school and provided
    through all our federal child nutrition programs.
        While the USDA has laid out principles for the Child
    Nutrition Reauthorization Act, it has not yet provided the kind
    of detailed legislative language or a detailed budget estimate
    for these improvements. In fact, our colleague on the Budget
    Committee and Chair of the Agriculture Appropriations
    Subcommittee, Congresswoman Rosa DeLauro, recently asked
    Secretary Vilsack how much his proposals would cost and if they
    fit within the $1 billion increase in the President's budget.
    Unfortunately, Secretary Vilsack at this time could not provide
    a specific line by line response, precisely because the
    Department has yet to release a detailed cost estimate.
        Two years ago this committee built into the budget
    resolution a reserve fund for the Farm Bill. That reserve fund,
    initially set at $20 billion, was used to enact a $4.9 billion
    increase in the Food Stamp Program, now called SNAP.
        The fiscal year 2010 budget resolution included a similar
    deficit-neutral reserve fund for the Child Nutrition
    Reauthorization Bill.
        I respectfully request that this committee include this
    language in the fiscal year 2011 budget resolution so we can
    provide the best improvements possible to this important set of
    programs.
        Mr. Chairman, we owe it to our children to properly invest
    in the Child Nutrition Programs. We owe it to our nation to
    clearly signal that ending child hunger and improving child
    nutrition and health are national program and budget
    priorities.
        The Institute of Medicine has called for significant
    improvements in these programs, and ultimately we can address
    hunger, improve nutrition, and help combat obesity and
    associated health problems by starting with our young children
    in schools.
        Let me conclude, Mr. Chairman, by focusing on just one more
    issue confronting our budget decisions, namely the wars in Iraq
    and Afghanistan.
        Before this Congress takes up the President's fiscal year
    2010 supplemental appropriations request and the fiscal year
    2011 budget, the total cumulative appropriations for the Afghan
    and Iraq wars is $1.08 trillion according to the Congressional
    Research Service. This figure does not include the costs to
    support our returning veterans with benefits and healthcare, or
    the interest on the war-related debt or aid to our allies. In
    constant 2008 dollars this war spending exceeds what we spent
    on any prior war in the history of the United States of America
    with the exception of World War II.
        Mr. Chairman, in a nutshell, these wars are bleeding our
    nation's fiscal and economic health dry. They are robbing us of
    the resources we need to invest in the economic recovery of
    America, in a 21st Century infrastructure, in national
    priorities such as education and healthcare, in our own
    homeland security, and in taking care of our most vulnerable
    children, seniors, neighbors, and veterans.
        Mr. Chairman, we must find a way to pay for these wars and
    to end them. Compared to the Bush Administration's handling of
    these war costs, I commend President Obama for including in his
    regular fiscal year 2011 budget request a greater portion of
    spending related to our policy in Iraq and Afghanistan,
    especially on the non-military side of the ledger.
    Unfortunately, most of our military operations continue to be
    deficit-funded and placed on the taxpayer credit card.
        I strongly urge this committee to include provisions in the
    fiscal year 2011 budget resolution that preclude escalating war
    spending, require payment and offsets for war spending, and
    help pave the path to bring our servicemen and women home as
    soon as possible.
        Thank you, Mr. Chairman, for the opportunity to bring these
    priorities to the attention of the Committee.
        [The prepared statement of James McGovern follows:]

       Prepared Statement of Hon. James P. McGovern, a Representative in
                    Congress From the State of Massachusetts

        Mr. Chairman, I want to thank the Committee for this opportunity to
    testify about the Fiscal Year 2011 Budget Resolution. As a member of
    the Budget Committee, I understand the difficult fiscal and budgetary
    constraints facing us this year and in the immediate future. It is
    important, therefore, that we outline clearly in the Budget Resolution
    the most important priorities for our country and its economic
    recovery, and for our people, especially those who are most vulnerable.
        Mr. Chairman, as you know, I am committed to ending hunger in
    America and around the world. I believe we can end hunger, but we
    haven't yet mustered the political will to do so. Despite the budgetary
    difficulties facing us, increasing funding for programs like school
    breakfasts and lunches, and after school and summer meals is something
    we simply must do. It is an investment in the health of our nation--not
    just the physical health of our citizens, but our economic health.
    Hunger and poor nutrition among children translate into lost
    productivity and significant health care costs throughout the lifetime
    of an adult.
        Mr. Chairman, we need to take dramatic action and address the
    growing number of children who rely on discounted and free meals during
    the school year and summer months.
        I commend President Obama for including a one billion dollar
    increase in funding for the Child Nutrition Programs in his FY 2011
    Budget. It is a bold step--it is a necessary step--if we are indeed
    going to provide more breakfasts, more after school snacks and more
    summer meals to children. Along with expanding these programs so they
    reach currently eligible children, we must also focus on improving the
    nutritional quality of the food served at school and provided through
    all our federal child nutrition programs.
        While the USDA has laid out principles for the Child Nutrition
    Reauthorization Act, it has not yet provided the kind of detailed
    legislative language or a detailed budget estimate for these
    improvements. In fact, our colleague on the Budget Committee and Chair
    of the Agriculture Appropriations Subcommittee, Congresswoman DeLauro,
    recently asked Secretary Vilsack how much his proposals would cost and
    if they fit within the $1 billion increase in the President's budget.
    Unfortunately, Secretary Vilsack could not provide a specific line-by-
    line response precisely because the Department has yet to release a
    detailed cost estimate.
        Two years ago, this Committee built into the budget resolution a
    reserve fund for the Farm Bill. That reserve fund--initially set at $20
    billion--was used to enact a $4.9 billion increase in the Food Stamp
    program, now called SNAP. The FY 2010 Budget Resolution included a
    similar deficit-neutral reserve fund for the Child Nutrition
    Reauthorization bill. I respectfully request that this Committee
    include this language in the FY 2011 Budget Resolution so we can
    provide the best improvements possible to this important set of
    programs.
        Mr. Chairman, we owe it to our children to properly invest in the
    Child Nutrition Programs. We owe it to our nation to clearly signal
    that ending child hunger and improving child nutrition and health are
    national program and budget priorities. The Institute of Medicine has
    called for significant improvements in these programs. Ultimately, we
    can address hunger, improve nutrition and help combat obesity and
    associated health problems by starting with our young children in
    schools.
        Let me conclude, Mr. Chairman, by focusing on just one more issue
    confronting our budget decisions--namely the wars in Iraq and
    Afghanistan. Before this Congress takes up the President's FY 2010
    supplemental appropriations request and the FY 2011 budget, the total
    cumulative appropriations for the Afghan and Iraq wars is $1.08
    trillion dollars, according to the Congressional Research Service. This
    figure does NOT include the costs to support our returning veterans
    with benefits and health care, or the interest on war-related debt or
    aid to our allies. In constant 2008 dollars, this war spending exceeds
    what we spent on any prior war in the history of the United States with
    the exception of World War II.
        Mr. Chairman, in a nutshell, these wars are bleeding our nation's
    fiscal and economic health dry. They are robbing us of the resources we
    need to invest in the economic recovery of America, in a 21st Century
    infrastructure, in national priorities such as education and health
    care, in our own homeland security, and in taking care of our most
    vulnerable children, seniors, neighbors and veterans.
        Mr. Chairman, we must find a way to pay for these wars and to end
    them. Compared to the Bush Administration's handling of these war
    costs, I commend President Obama for including in his regular FY 2011
    Budget Request a greater portion of spending related to our policy in
    Iraq and Afghanistan, especially on the non-military side of the
    ledger. Unfortunately, most of our military operations continue to be
    deficit-funded and placed on the taxpayer credit card.
        I strongly urge this Committee to include provisions in the FY 2011
    Budget Resolution that preclude escalating war spending, require
    payment and offsets for war spending and help pave the path to bring
    our servicemen and women home as soon as possible.
        Thank you, Mr. Chairman, for the opportunity to bring these
    priorities to the attention of the Committee.

        Mr. Blumenauer. Thank you for your testimony, I deeply
    appreciate it. We will take a 15 second recess.
        [Recess.]
        Mr. McGovern [presiding]. The Budget Committee will
    reconvene, and we are happy to welcome the Honorable Dina Titus
    from Nevada, and we very much appreciate you being here and
    look forward to hearing your testimony. You may proceed.

    STATEMENT OF HON. DINA TITUS, A REPRESENTATIVE IN CONGRESS FROM
                          THE STATE OF NEVADA

        Ms. Titus. Thank you, Mr. Chairman for this opportunity to
    testify about my priorities for the fiscal year 2011 budget
    resolution.
        Like all Americans, my constituents in Southern Nevada have
    been struggling. Our state has the highest foreclosure rate and
    the second highest unemployment in the nation, and our state
    legislature just finished a special session where they were
    forced to make another round of drastic cuts to education and
    other state agencies.
        Las Vegas is no long recession proof. It used to be that if
    you had two nickels to rub together you would come to Las Vegas
    in hopes of changing your luck. That is not true anymore. If
    people don't have disposable income in Iowa and Georgia they
    can't come to Nevada for fun and for business.
        So it is very clear to me that job creation must be the
    central focus of the 2011 budget resolution. We need to put
    Americans to work in clean energy jobs and other emerging
    fields so that the United States can position itself as a
    leader in this global economy.
        It is my strong belief that the 2011 budget should
    incentivize domestic manufacturing of clean energy technologies
    like solar, wind, and geothermal. A focus on domestic
    manufacturing ensures that we don't trade a dependence on
    foreign oil for a reliance on clean energy exports from
    countries like China. We need to make the mirrors, make the
    windmills here in this country. And although we have started to
    see signs of growth in our economy, we will not be fully
    recovered until Americans are back to work.
        I also strongly believe that the budget resolution must
    work to reign in the deficit and restore fiscal responsibility.
    All across Southern Nevada my constituents are tightening their
    belts, and they expect the U.S. Congress to do the same.
        Under the President's budget request we see deficits
    decline from 10.6 percent of GDP in 2010 to 3.9 percent in
    2014, and non-security discretionary spending is frozen for
    three years. This is an important start, but I believe we need
    to do more. We should work together in a bipartisan way to
    reduce the deficit, to cut programs that don't work, and to
    eventually balance the budget.
        I urge your committee to draft a budget resolution that
    reduces the deficit even further so that we don't saddle the
    next generation of Americans with unmanageable debt.
        Now, I recognize that we must make difficult choices in
    order to reduce the deficit and improve the economy. For
    instance, it is time we stopped funding defense acquisition
    programs that the Department of Defense doesn't even want.
        I do remain concerned, however, about President Obama's
    proposal to reduce the itemized deduction rate for families
    with incomes over $250,000. This is a proposal that Congress
    has already rejected last year. And I am particularly concerned
    with the impact this provision could have on the already
    devastated housing market in my congressional district.
        The Mortgage Interest Deduction is an important incentive
    that encourages Americans to buy homes. In fact, some people
    consider the Mortgage Interest Deduction to be the single most
    important tax incentive facilitating home ownership in the
    United States. I am concerned that reducing the value of this
    incentive would lead to the further deterioration of the
    housing market. It is evident that the housing market is
    closely tied to the national economy as a whole.
        The housing market in my congressional district in Southern
    Nevada, previously one of the fastest growing markets in the
    country, is currently in shambles. Today, 70 percent of
    homeowners in Nevada owe more on their homes than the houses
    are worth. We can't afford to let prices drop any further by
    making it less attractive to buy a home in Nevada.
        Last, but certainly not least, I want to applaud the
    President for killing the Yucca Mountain program once and for
    all in his budget request. For years Nevadans have fought
    against this disastrous plan to store nuclear waste in our
    backyard. We are not a dump site. The President's budget
    fulfills a promise he made to Nevadans, and I could not be more
    supportive of his proposal to terminate funding for the Yucca
    Mountain program.
        So I thank you again, Mr. Chairman, for this opportunity to
    express my views about the President's fiscal year 2011 budget
    request, and I look forward to working with you to ensure that
    Congress passes a responsible budget that puts our economy back
    on the right track.
        [The prepared statement of Dina Titus follows:]

      Prepared Statement of Hon. Dina Titus, a Representative in Congress
                            From the State of Nevada

        Thank you, Chairman Spratt and Ranking Member Ryan, for this
    opportunity to testify about my priorities in the Fiscal Year 2011
    budget resolution. Like all Americans, my constituents in Southern
    Nevada have been struggling. Our State has the highest foreclosure rate
    and the second highest unemployment in the nation, and our state
    legislature just finished a special session where they were forced to
    make another round of cuts to education and other state agencies. If
    there is one thing we can all agree upon, it is that the status quo is
    unacceptable.
        It is clear to me that job creation must be the central focus of
    the 2011 budget resolution. We need to put Americans to work in the
    clean energy sector and other emerging fields so that the United States
    can position itself as a leader in this global economy. It is my strong
    belief that the 2011 budget should incentivize domestic manufacturing
    of clean energy technologies like solar, wind, and geothermal. A focus
    on domestic manufacturing ensures that we don't trade a dependence on
    foreign oil for a reliance on clean energy exports from countries like
    China. Although we have started to see signs of growth in our economy,
    we will not have fully recovered until Americans are back to work.
        I also strongly believe that the budget resolution must work to
    rein in the deficit and restore fiscal responsibility. All across
    Southern Nevada, my constituents are tightening their belts, and they
    expect the United States Congress to do the same. Under the President's
    budget request, we see deficits decline from 10.6 percent of GDP in
    2010 to 3.9 percent in 2014, and non-security discretionary spending is
    frozen for three years. This is a start, but we must do more. We should
    work together in a bipartisan way to reduce the deficit, cut programs
    that don't work, and eventually balance the budget. I urge the
    committee to draft a budget resolution that reduces the deficit even
    further, so that we do not saddle the next generation of Americans with
    unmanageable debt.
        I recognize that we must make difficult choices in order to reduce
    the deficit and improve the economy. For instance, it's time we stop
    funding defense acquisition programs that the Department of Defense
    doesn't want. I remain concerned, however, about President Obama's
    proposal to reduce the itemized deduction rate for families with
    incomes over $250,000--a proposal this Congress rejected last year. I
    am particularly concerned with the impact this provision could have on
    the already devastated housing market in my Congressional District.
        The Mortgage Interest Deduction is an important incentive that
    encourages Americans to buy homes. Some consider the Mortgage Interest
    Deduction to be the single most important tax incentive facilitating
    home ownership in the United States. I am concerned that reducing the
    value of this incentive would lead to the further deterioration of the
    housing market. It is evident that the housing market is closely tied
    to the national economy as a whole. The housing market in my
    Congressional District in Nevada--previously one of the fastest growing
    markets in the nation--is currently in shambles. Today, 70 percent of
    homeowners in Nevada owe more on their homes than they are worth. We
    can't afford to let prices drop any further by making it less
    attractive to buy a home in Southern Nevada.
        Last, but certainly not least, I want to applaud the President for
    killing the Yucca Mountain program once and for all in his budget
    request. For years, Nevadans have fought against this disastrous plan
    to store nuclear waste in our backyard. The President's budget fulfills
    a promise he made to Nevadans and I could not be more supportive of his
    proposal to terminate funding for the Yucca Mountain program.
        Thank you again, Mr. Chairman, for the opportunity to express my
    views about the President's FY 2011 budget request. I look forward to
    working with you to ensure that Congress passes a responsible budget
    that puts our economy back on the right track.

        Mr. McGovern. Thank you very much for your excellent
    testimony, and we certainly will consider all of the issues
    that you raised and we appreciate you being here. Thank you.
        Ms. Titus. Thank you.
        Mr. McGovern. The Budget Committee with stand in a brief
    recess.
        [Recess.]
        Mr. McGovern. The Budget Committee will reconvene. We are
    delighted to welcome the Honorable Bill Owens from New York,
    and we look forward to hearing your testimony.

     STATEMENT OF HON. WILLIAM OWENS, A REPRESENTATIVE IN CONGRESS
                       FROM THE STATE OF NEW YORK

        Mr. Owens. Chairman Spratt and Ranking Member Ryan, thank
    you for the opportunity to address the committee today, and
    thank you, Mr. Chairman.
        There are several issues specific to my Upstate New York
    district that I would like to bring to your attention.
        I appreciate the difficulties you face in crafting a budget
    this year, and I am grateful for the opportunity to speak on
    behalf of my constituents.
        First, New York's North Country is the proud home of the
    10th Mountain Division at Fort Drum, an installation recently
    named one of the top ten communities for military families in
    the world. The division is the most deployed in the Army.
    Today, two-thirds of the combat teams stationed at Fort Drum
    are fighting in Iraq and Afghanistan. The families of these
    soldiers depend on Congress to provide the services they need
    to endure these frequent deployments. When our soldiers come
    home they deserve to return to installations with sufficient
    funding to support their training and transition to garrison
    life.
        Earlier this year Fort Drum learned that their budget would
    be slashed 30 percent, forcing the base to cut contracts with
    businesses in the community and eliminate services for
    soldiers. The fiscal year 2011 budget includes only a very
    modest increase in these funds over fiscal year 2010 levels,
    and I am concerned this increase does not reflect recent
    adjustments the Army has had to make in base funding by
    shifting $500 million to worldwide base operating funds from
    other operational accounts. Although this shift negated further
    cuts, it has left many military communities uneasy about the
    future.
        Ensuring adequate operational funding for our Army
    installations is critical to easing the burden on both our
    soldiers and the greater communities they reside in. I urge the
    committee to carefully consider the base operation support
    budget for the Army.
        In addition to being home to a major Army installation, the
    23rd district of New York shares an extensive border with
    Canada. To better secure this border, GSA has completed the
    planning phase of a new land port entry in Alexandria Bay, New
    York. Each day this port of entry receives 484 trucks and
    facilitates trade of nearly $19 million worth of cargo.
        Future tenants of the expanded Alexandria Bay facility will
    include many of the agencies that protect our borders from
    terrorists and facilitate the flow of cargo.
        GSA requested $171.5 million to continue the Alexandria Bay
    project in fiscal year 2011, but the President did not include
    the request in his budget.
        Upstate New York began suffering from economic difficulties
    long before the current recession, and its communities rely
    heavily on trade with Canada. Expansion of the Alexandria Bay
    facility is critical to creating jobs and to securing our
    northern border, and I urge you to include funding for this
    project in your fiscal year 2011 budget.
        I think it is important to note that the trade between
    Quebec and New York is over $80 billion a year, and between
    Canada and the United States in excess of $365 billion a year.
        Finally, I urge you to support the President's request for
    a $36 billion increase to the nuclear loan guarantee program.
    There has been a serious effort in my district to utilize this
    program for the construction of a third reactor at the Nine
    Mile Point nuclear power plant in Oswego County, New York.
    Completion of this effort would create 4,000 construction jobs
    and nearly 400 permanent positions at the plant, but funding
    for this project is unavailable due to the relatively small
    pool of funds in the program.
        With the increase requested by the President there is new
    hope for this significant piece of economic development to
    succeed in Central New York. This is exactly the type of
    investment we need replicated across the country to create
    jobs, move our local economies forward, and make clean energy a
    reality for America's future.
        Again, thank you for the opportunity to address the
    committee, and I would be happy to answer any questions.
        [The prepared statement of William Owens follows:]

    Prepared Statement of Hon. William Owens, a Representative in Congress
                           From the State of New York

        Chairman Spratt and Ranking Member Ryan, thank you for the
    opportunity to address the committee today. There are several issues
    specific to my Upstate New York district that I'd like to bring to your
    attention. I appreciate the difficulties you face in crafting a budget
    this year, and I'm grateful for the opportunity to speak on behalf of
    my constituents.
        First, New York's North Country is the proud home of the 10th
    Mountain Division at Fort Drum, an installation recently named one of
    the top ten communities for military families in the world. The
    division is the most deployed in the Army. Today, two-thirds of the
    combat teams stationed at Fort Drum are fighting in Iraq and
    Afghanistan. The families of these soldiers depend on Congress to
    provide the services they need to endure these frequent deployments.
    When our soldiers come home, they deserve to return to installations
    with sufficient funding to support their training and transition to
    garrison life.
        Earlier this year, Fort Drum learned that their budget would be
    slashed 30 percent, forcing the base to cut contracts with businesses
    in the community and eliminate services for soldiers. The FY11 budget
    includes only a very modest increase in these funds over FY10 levels,
    and I'm concerned this increase does not reflect recent adjustments the
    Army has had to make in base funding by shifting $500 million to
    worldwide base operating funds from other operational accounts.
    Although this shift negated further cuts, it has left many military
    communities uneasy about the future. Ensuring adequate operational
    funding for our Army installations is critical to easing the burden on
    both our soldiers and the greater communities they reside in. I urge
    the committee to carefully consider the base operation support budget
    for the Army.
        In addition to being home to a major Army installation, the 23rd
    district of New York shares an extensive border with Canada. To better
    secure this border, GSA has completed the planning phase of a new Land
    Port of Entry in Alexandria Bay, New York. Each day this port of entry
    receives 484 trucks and facilitates trade of nearly $19 million worth
    of cargo. Future tenants of the expanded Alexandria Bay facility will
    include many of the agencies that protect our borders from terrorists
    and facilitate the flow of cargo.
        GSA requested $171.5 million to continue the Alexandria Bay project
    in FY11, but the President did not include the request in his budget.
    Upstate New York began suffering from economic difficulties long before
    the current recession, and its communities rely heavily on trade with
    Canada. Expansion of the Alexandria Bay facility is critical to
    creating jobs and to securing our northern border, and I urge you to
    include funding for this project in your FY11 budget.
        Finally, I urge you to support the President's request for a $36
    billion dollar increase to the nuclear loan guarantee program. There
    has been a serious effort in my district to utilize this program for
    the construction of a third reactor at the Nine Mile Point nuclear
    power plant in Oswego County, New York. Completion of this effort would
    create 4,000 construction jobs and nearly 400 permanent positions at
    the plant.
        But funding for this project is unavailable due to the relatively
    small pool of funds in the program. With the increase requested by the
    President, there is new hope for this significant piece of economic
    development to succeed in Central New York. This is exactly the type of
    investment we need replicated across the country to help create jobs,
    move our local economies forward and make clean energy a reality for
    America's future.
        Again, thank you for the opportunity to address the committee, and
    I'd be happy to answer any questions.

        Mr. McGovern. Thank you very much, Mr. Owens for your
    excellent testimony. You are a valued member of this house and
    we appreciate your words, and you can be assured that we are
    going to carefully consider everything you said.
        Mr. Owens. Thank you very much, Mr. Chairman.
        Mr. McGovern. Thank you very much. The Budget Committee
    will now stand in a brief recess.
        [Recess.]
        Mr. McGovern. The Budget Committee will reconvene, and we
    are delighted to have with us the Honorable Betsy Markey from
    Colorado, and we look forward to your testimony. The floor is
    yours.

     STATEMENT OF HON. BETSY MARKEY, A REPRESENTATIVE IN CONGRESS
                       FROM THE STATE OF COLORADO

        Ms. Markey.*. Thank you, Chairman McGovern, thank you for
    allowing me to share my thoughts before the Budget Committee on
    the proposed fiscal year 2011 budget.
        I believe the President's budget makes some positive steps
    toward putting us on a sustainable path, and I am pleased to
    have the opportunity to engage in an open dialogue on the
    programs I support and on cuts that would have a negative
    impact on Colorado's Fourth District.
        I am concerned about the President's elimination of the
    Resource Conservation and Development Program from the budget.
    The RC&D Program provides support to authorized multi-county
    areas in the form of Natural Resource Conservation Service
    staff coordinators and technical advisors. These coordinators
    assist local conservation councils of private and public
    sectors volunteers in developing programs to conserve and
    develop natural resources, and improve economic and
    environmental conditions in rural America.
        The RC&D Program should be promoted, not eliminated because
    it fulfills a vital national goal through coordination of local
    organizations and national agencies.
        Regrettably, the Administration's budget proposal also
    makes significant reductions to clean water programs that are
    vital to many rural communities trying to improve their clean
    and wastewater infrastructure.
        The fiscal year 2011 budget eliminates the Army Corps of
    Engineers water and wastewater treatment project funding, which
    will allow organizations to focus on its core competencies;
    however, that elimination could be catastrophic when combined
    with the large cuts to the EPA's Clean Water State Revolving
    Fund and Drinking Water State Revolving Fund.
        Additionally, the President's budget has terminated all
    vector-borne disease funding through the Centers for Disease
    Control and Prevention. This Fort Collins, Colorado-based
    division will have to contend with other disease research for a
    small portion of the emerging infectious disease budget. The
    loss of a dedicated budget will result in the termination of
    existing research and prevention programs, which include the
    state-coordinated West Nile Surveillance Program and the highly
    successful Dengue Research Program.
        CDC research has helped to detect dengue transmission in
    Florida and discovered the risk posed to blood supplies in
    Puerto Rico. The CDC Vector-Borne division's research saves
    lives in communities throughout the United States and around
    the globe, and I encourage the continued funding of this
    important division at its fiscal year 2010 level.
        The proposed Department of the Interior's Bureau of
    Reclamation Budget includes only $3 million in funding
    desperately needed to at long last complete the Arkansas Valley
    Conduit. This piece of the larger Fryingpan-Arkansas Project
    was first authorized in 1962, but has not received sufficient
    federal support.
        I strongly support more complete funding in the fiscal year
    2011 budget for the completion of this project, about which
    President John Kennedy said, ``This is an investment in the
    future of this country, an investment that will repay large
    dividends. It is an investment in the growth of the West.''
        I applaud President Obama's commitment to the veterans of
    the United States as demonstrated by his increasing the
    Department of Veterans Affairs fiscal year 2011 budget for
    healthcare and compensation. I especially appreciate the
    increased focus on the needs of the growing number of women
    veterans and their unique needs.
        In addition, the investments in the high quality delivery
    of health care and benefits through increased technology usage
    will allow the VA to stay on the leading edge of medical
    service for veterans for years to come.
        The President's proposed education funding reflects one of
    my top priorities, which is making college affordable for all
    students. With three of my own children around college-age, I
    understand how challenging it is for families to balance
    college costs with household necessities. For this reason, I am
    very pleased to see that President Obama has supported making
    permanent the $5,550 Pell Grant maximum award, and I support
    the President's proposal to put the Pell Grant Program on firm
    financial footing. Ensuring access to higher education for
    Americans of all incomes is essential to our Nation's future.
        I am disappointed though to see that the Department of
    Education budget cuts funding for the Reach Out and Read
    program. Reach Out and Read distributes books to children
    through pediatricians' office. In my district alone, Reach Out
    has helped nearly 10,000 children through 27 clinics. I have
    had the privilege to read to children at these clinics and have
    seen firsthand the benefits of this program. Many of these
    children receive new books only when they go for their annual
    checkup. As literacy is an essential building block for
    educational success, I urge the continued funding for Reach Out
    and Read.
        Finally, I support President Obama's goal to increase the
    number of graduate fellowships in science, especially the
    investments in researchers pursuing clean energy careers;
    however, I would also encourage the Administration to invest in
    vocational education and in community college programs in
    renewable energy and energy efficiency.
        We have a unique opportunity at this time to change the way
    we power this country, but we need to invest in training and a
    green workforce to create jobs and deploy new energy
    strategies. The men and women graduating from these
    institutions will be the technicians building wind-turbine
    blades and servicing solar and geothermal installations. We
    need to invest in both innovation and implementation to create
    the clean energy economy of tomorrow.
        To the Members of the Committee, I appreciate the
    opportunity to share my priorities and concerns in the fiscal
    Year 2011 budget. Thank you.
        [The prepared statement of Betsy Markey follows:]

     Prepared Statement of Hon. Betsy Markey, a Representative in Congress
                           From the State of Colorado

        Chairman Spratt and Ranking Member Ryan, thank you for allowing me
    to share my thoughts before the Budget Committee on the proposed Fiscal
    Year 2011 Budget. I believe that the President's budget takes some
    positive steps toward putting us on a sustainable path, though I know
    that we have many difficult choices ahead. I am pleased to have the
    opportunity to engage in an open dialogue on the programs I support,
    and on cuts that would have a negative impact on the Fourth District of
    Colorado.
        I am concerned about the President's elimination of the Resource
    Conservation and Development Program from the budget. The RC&D Program
    provides support to authorized multi-county areas in the form of
    Natural Resource Conservation Service staff coordinators and technical
    advisors. These coordinators assist local conservation councils of
    private and public sectors volunteers in developing programs to
    conserve and develop natural resources, and improve economic and
    environmental conditions in rural America. The funding provided by this
    program can go a long way in rural areas, such as in Southeast
    Colorado, where the Southeast Colorado RC&D Council has developed
    programs to decrease contaminants in vital area watersheds and to
    implement renewable energy resources in area farms. The RC&D program
    should be promoted, not eliminated because it fulfills vital national
    goals through coordination of local organizations and national
    agencies.
        Regrettably, the Administration's budget proposal also makes
    significant reductions to clean water programs that are vital to many
    rural communities trying to improve their clean and wastewater
    infrastructure. The Fiscal Year 2011 Budget eliminates the Army Corps
    of Engineers water and wastewater treatment project funding, which will
    allow that organization to focus on its core competencies. However,
    that elimination could be catastrophic when combined with the large
    cuts to the Environmental Protection Agency's Clean Water State
    Revolving Fund and Drinking Water State Revolving Fund. With Army
    Engineer projects being eliminated, it is important that these EPA
    funds be protected to allow states to develop and improve their water
    infrastructure.
        Additionally, the President's Budget has terminated all vector-
    borne disease funding through the Centers for Disease Control and
    Prevention. This Fort Collins, Colorado-based division will have to
    contend with other disease research for a small portion of the Emerging
    Infectious Disease budget. The loss of a dedicated budget will result
    in the termination of existing research and prevention programs, which
    include the state-coordinated West Nile Surveillance program and the
    highly successful dengue research program. Dengue is a virus that
    threatens more than one-third of the global population and is endemic
    to Puerto Rico, Guam, Samoa, and many areas of Latin America. CDC
    research has helped detect a dengue transmission in Florida and
    discovered the risk posed to blood supplies in Puerto Rico. The CDC
    Vector-Borne division's research saves lives in communities throughout
    the United States and around the globe and I encourage the continued
    funding of this important division at its FY2010 levels.
        The proposed Department of the Interior Bureau of Reclamation
    budget includes only $3 million in funding desperately needed to at
    long last complete the Arkansas Valley Conduit. This piece of the
    larger Fryingpan-Arkansas Project was first authorized in 1962 but has
    not received sufficient federal support. I strongly support more
    complete funding in the Fiscal Year 2011 Budget for the completion of
    this project, about which President John Kennedy said, ``This is an
    investment in the future of this country, an investment that will repay
    large dividends. It is an investment in the growth of the West, in the
    new cities and industries which this project helps make possible.''
        I applaud President Obama's commitment to the Veterans of the
    United States as demonstrated by his increasing the Department of
    Veterans Affairs Fiscal Year 2011 Budget for health care and
    compensation. I especially appreciate the increased focus on the needs
    of the growing number of women veterans and their unique needs. In
    addition, the investments in the high-quality delivery of health care
    and benefits through increased technology usage will allow the VA to
    stay on the leading edge of medical service for veterans for years to
    come.
        The President's proposed education funding reflects one of my top
    priorities, which is making college affordable for all students. With
    three of my own children around college-age, I understand how
    challenging it is for families to balance college costs with household
    necessities. For this reason, I am very pleased to see that President
    Obama has supported making permanent the $5,550 Pell Grant maximum
    award and I support the President's proposal to put the Pell grant
    program on ``firm financial footing.'' Ensuring access to higher
    education for Americans of all income levels is essential to our
    nation's future.
        I am disappointed to see that the Department of Education budget
    cuts funding for the Reach Out and Read program. Reach Out and Reach
    distributes books to children through pediatricians' office. In my
    district alone, Reach Out has helped nearly ten thousand children
    through 27 clinics. I have had the privilege to read to children at
    these clinics and have seen firsthand the benefits of this program.
    Many of these children only receive new books other than when they go
    for their annual checkup. As literacy is an essential building block
    for educational success, I urge the continued funding for Reach Out and
    Reach and commend the program for its past efforts.
        Finally, I support President Obama's goal to increase the number of
    graduate fellowships in science, especially the investments in
    researchers pursuing clean energy careers. However, I would also
    encourage the Administration to invest in vocational education and in
    community college programs in renewable energy and energy efficiency.
    We have a unique opportunity at this time to change the way we power
    this country, but we need to invest in training a green workforce to
    create jobs and deploy new energy strategies. The men and women
    graduating from these institutions will be the technicians building
    wind-turbine blades and servicing solar and geothermal installations.
    We need to invest in both innovation and implementation to create the
    clean energy economy of tomorrow.
        To the members of the committee, I appreciate the opportunity to
    share my priorities and concerns in the Fiscal Year 2011 Budget.

        Mr. McGovern. Well thank you very much, we appreciate you
    being here, you are a valued member of this institution, and we
    will consider all of your suggestions, you have our word on
    that. Thank you.
        Ms. Markey. Thank you very much, Mr. Chairman.
        Mr. McGovern. The Budget Committee will stand in a brief
    recess.
        [Recess.]
        Mr. McGovern. The Budget Committee will reconvene. We are
    honored to have with us the Honorable Gabrielle Giffords of
    Arizona, and we look forward to your testimony, and we welcome
    you to the Budget Committee.

       STATEMENT OF HON. GABRIELLE GIFFORDS, A REPRESENTATIVE IN
                   CONGRESS FROM THE STATE OF ARIZONA

        Ms. Giffords. Thank you so much for having me at the Budget
    Committee, Congressman McGovern. I really appreciate also
    Chairman Spratt and Ranking Member Ryan for today's testimony.
        I think it is important today to have the opportunity to
    testify before the House Budget Committee on what I consider to
    be a dangerous deficiency in the funding of our border security
    programs proposed in the President's fiscal year 2011 budget.
        As one of only ten members of Congress in a district that
    represents the U.S. Mexico border I am extremely concerned
    about stemming the flow of illegal immigrants, drugs, guns, and
    money across our southern border. Addressing this problem has
    been one of my top priorities in the United States Congress, in
    fact that is what my constituents sent me here to do.
        The region they represent is the nation's largest and most
    porous sector of the U.S. Mexico border. More drugs are seized
    and more illegal immigrants are apprehended in the Tucson
    sector of the Border Patrol than anywhere else in the United
    States.
        Last week I had an eye opening meeting with the President
    of the Tucson Secretary of Border Patrol Council and his
    executive committee. These dedicated agents told me that in no
    uncertain terms they will be severely hindered in doing their
    job of securing our border if the President's proposed budget
    is actually adopted, and that is why I am here today. We need
    to listen more closely to the men and women who are actually
    serving on the front lines of our border security crisis, not
    the folks here in Washington who are making decisions for them.
        Every day our border patrol agents risk their lives in
    carrying out their mission in some of the harshest working
    conditions in the nation. I believe that they deserve our
    gratitude, they deserve our respect, but they also deserve
    being supported in our Congressional budget.
        We all know that our economy is going through a challenging
    time, but this should not prevent us from giving the border
    patrol agents the critical resources they need to keep our
    communities safe.
        We all know that our budget is a reflection of our
    priorities, and I don't think that any Member of Congress would
    dispute that our most important priority to members is to keep
    our homeland safe and secure.
        Let me tell you a little bit about your southern Arizona
    district. Every day the residents of my district live with the
    harsh reality that the federal government has not done enough,
    even though they talk about border security on a daily basis,
    they actually haven't done enough to keep Southern Arizona's
    borders secure. Senior citizens in Green Valley have voiced
    their concerns for their safety because of the spillover of
    drug violence that is played out in their neighborhoods. We
    have ranchers and farmers in Douglas and Nogales area that are
    forced to contend with the impact of drug smugglers and tens of
    thousands of illegal immigrants every single year that cross
    through their property, their land. And residents of Tucson, my
    hometown, are constantly confronted with the immense toll
    brought by narco-terrorists who smuggle drugs and illegal
    immigrants into the Tucson area across the deserts, and then
    they end up setting up these drug clearinghouses within our
    communities that lead to drug addiction in the areas, home
    invasions, kidnappings, some of the highest in the world in the
    State of Arizona, and increased violence.
        So in a word the situation is completely intolerable. The
    federal government cannot secure the border until we dedicate
    sufficient funding to prevent illegal drugs and immigrants from
    entering the country and force the laws that currently exist
    within our borders.
        My first concern in the President's budget is he has
    proposed to scale back several border security programs that
    have proven to be effective. The border patrol would lose 181
    agents under this proposal. And if this wasn't bad enough, 52
    Air Interdiction agents and 18 Marine Interdiction agents would
    also be eliminated. So this would lead to a total of 251 agents
    who are heavily involved with our nation's interior security.
    Again, a giant step in the wrong direction.
        I am also deeply concerned with the inadequate funding of
    the State Criminal Alien Assistance Program, or SCAAP, in the
    President's fiscal year 2011 budget proposal. In fact, I have
    testified before your committee in the past about the same
    thing under the previous president.
        SCAAP was created to reimburse states and localities for
    the arrest, incarceration, and transportation costs associated
    with illegal immigrants who commit crimes in our communities.
    If you want to know how vital this program is talk to Pima
    County Sheriff, Clarence Dupnik, or Cochise County Sheriff,
    Larry Dever, or Santa Cruz County Sheriff, Tony Estrada. They
    are going to tell you that these funds are a life line for the
    cash strapped law enforcement agencies that are already hard
    hit by the problems along the U.S.-Mexico border.
        Regrettably, the President's budget contains only $330
    million for SCAAP, woefully below the $950 million required to
    fully fund this essential program to our border communities.
        Passing this extraordinary cost burden on to your
    localities and states is simply wrong and it is completely
    unfair. Funding cuts for these critical programs are a real
    safety and security threat for Arizona, as well as all border
    states, but frankly for the entire nation.
        As Members of the Budget Committee you have the authority
    to make decisions that will keep our border secure, and I urge
    you to take bold action to correct these deficiencies.
        I appreciate your time and your attention to this matter,
    it means a lot to my constituents in Southern Arizona, I
    believe it means a lot to the people of this country. Thank
    you.
        [The prepared statement of Gabrielle Giffords follows:]

      Prepared Statement of Hon. Gabrielle Giffords, a Representative in
                       Congress From the State of Arizona

        Thank you Chairman Spratt and Ranking Member Ryan.
        I really appreciate the opportunity to address the House Budget
    Committee about what I consider to be a dangerous deficiency in the
    funding for border security programs proposed in the President's fiscal
    year 2011 budget.
        As one of only ten members with a district on the U.S.-Mexico
    border, I am extremely concerned about stemming the flow of illegal
    immigrants, drugs, guns and money across our southern border.
        Addressing this problem is one of my top priorities in Congress.
    That's what my constituents sent me here to do.
        The region I represent is the nation's largest and most porous
    sector of the U.S.-Mexico border. More drugs are seized and more
    illegal immigrants are apprehended in the Tucson sector of the Border
    Patrol than anywhere else in the country.
        Last week I had an eye opening meeting with the President of the
    Tucson Sector Border Patrol Council and his Executive Committee.
        These dedicated agents told me in no uncertain terms that they will
    be severely hindered in doing their job of securing the border if
    President Obama's proposed budget is adopted.
        This is why I am here today.
        We need listen to the men and women who are actually serving on the
    front lines of our border security crisis. Not bureaucrats in
    Washington.
        Every day our Border Patrol agents risk their lives in carrying out
    their mission in some of the harshest working conditions in the nation.
    They deserve our respect and gratitude. They deserve being supported in
    our Congressional budget.
        We all know that our economy is going through a challenging time
    but this should not prevent us from giving Border Patrol agents the
    critical resources they need to keep our communities safe.
        This is a matter of priorities and nothing is more important to any
    Member of Congress than the security of our homeland.
        Let me tell you about my southern Arizona district:
        Every day the residents of my district live with the harsh reality
    that the federal government still has not done enough to secure our
    southern border.
        Senior citizens in Green Valley have voiced concerns for their
    safety because of the spillover of drug-fueled violence that is played
    out in their neighborhoods.
        Ranchers near Douglas and Naco are forced to contend with the
    impacts of drug smugglers and tens of thousands of illegal immigrants
    crossing their land.
        And residents of Tucson--my hometown--are constantly confronted
    with the immense toll brought by narco-terriorists who smuggle drugs
    and illegal immigrants across the deserts that surround Arizona's
    second largest city, and set up drug clearing houses within our
    communities which lead to drug addiction, home invasions, kidnappings
    and increased violence.
        In a word, this situation is intolerable.
        The federal government cannot secure the border until we dedicate
    sufficient funding to prevent illegal drugs and immigrants from
    entering the country and enforce the laws within our borders.
        1. My first concern is that the President's budget proposal scales
    back several border security programs that have proven to be effective.
        The Border Patrol would lose 181 agents under this proposal. And if
    this wasn't bad enough, 52 Air Interdiction agents and 18 Marine
    Interdiction agents also would be eliminated.
        This is a total reduction of 251 agents who are heavily involved
    with our nation's interior security. This is a giant step in the wrong
    direction.
        2. I am also deeply concerned with the inadequate funding for the
    State Criminal Alien Assistance Program or SCAAP in the President's
    fiscal year 2011 budget proposal.
        SCAAP was created to reimburse states and localities for the
    arrest, incarceration and transportation costs associated with illegal
    immigrants who commit crimes in our communities.
        If you want to know how vital this program is,
         talk to Pima County Sheriff Clarence Dupnik,
         talk to Cochise County Sheriff Larry Dever and
         talk to Santa Cruz County Sheriff Tony Estrada.
        They will tell you that these funds are a lifeline for their cash
    strapped law enforcement agencies that are hard hit by the crisis on
    our border.
        Regrettably, the President's budget contains only $330 million for
    SCAAP, woefully below the $950 million required to fully fund this
    essential program.
        Passing this extraordinary cost burden to our localities and states
    is simply wrong.
        Funding cuts for these critical programs are a real safety and
    security threat for Arizona as well as all Border States.
        As Members of the Budget Committee you have the authority to make
    decisions that will keep our border secure, and I urge you to take bold
    action to correct these budget deficiencies.
        Thank you for your attention to this important matter to southern
    Arizona and our nation.

        Mr. McGovern. Thank you very much, and we appreciate your
    testimony, you raise some very important issues, and we will
    carefully consider ways that we can help, but thank you so much
    for being before this committee.
        Ms. Giffords. I appreciate it.
        Mr. McGovern. The Budget Committee will stand in brief
    recess.
        [Recess.]
        Mr. McGovern. We are honored to have the Honorable Rush
    Holt of New Jersey, and we look forward to your testimony, and
    the floor is yours. Thank you for being here.

    STATEMENT OF HON. RUSH HOLT, A REPRESENTATIVE IN CONGRESS FROM
                        THE STATE OF NEW JERSEY

        Mr. Holt. Mr. Chairman, thank you. Thank you for having me.
    I appreciate the opportunity to testify on the 2011 budget, and
    in particular its investment in science and science education.
        We know that investing in innovation creates jobs, it is
    the engine that drives our country. Economic growth comes from
    new ideas and a smart, well trained workforce. Nothing else,
    that is it.
        Our current economy is the result of investments that our
    country made two or three decades ago, and so I am here to urge
    you, my colleagues, to make the investments that will propel
    our country forward for the next several decades.
        The challenges of the 21st Century require that we think of
    our system of innovation, beginning with basic research and
    ending with the manufacture of goods and services and creation
    of these new things as fundamental to our nation's
    infrastructure.
        In the 20th Century construction of the interstate highway
    system and electrification in rural America were indispensable
    elements of our infrastructure. These investments were
    responsible for extraordinary economic growth in the last
    century, and in this century our nation must invest in new
    types of infrastructure to keep America competitive.
        The increased research investment will create new
    technologies to save energy, new forms of renewable energy, new
    advanced vehicle technologies that will keep our environment
    cleaner and our economy more vibrant.
        The President's budget request recognizes the centrality of
    science and innovation. I don't need to go through the details
    of what is in the budget, you know that, but I strongly urge
    the committee to compliment the research and development under
    function 250 by supporting the President's proposed increase
    for funding for the research, development, demonstration, and
    deployment of energy efficiency, renewable energy, smart grids,
    and advanced vehicle technologies.
        This budget seems to me to reverse years of neglect for
    science and make a significant down payment on the President's
    plan to double basic research funding over the next ten years.
        I support the goal to make permanent the R&D tax credit,
    which is an important instrument.
        In today's tight budget environment I applaud the
    Administration for proposing historic increases in the federal
    government's commitment to science education. I am pleased to
    see $300 million in the Department of Education budget for
    improving teaching and learning in science and math. I am still
    reviewing the proposal, and I hope that they can find ways to
    pay more attention to the training and professional development
    of teachers. Still the dollar amount is good, and so what the
    Budget Committee will be dealing with is certainly on the right
    track.
        These are troubled economic times, I don't need to tell
    anyone here, and science is the ideal investment because it
    provides jobs now, and I don't mean just people in lab coats, I
    am talking about lab techs, I am talking about electricians who
    wire the labs, I am talking about all of the other associated
    jobs that go with it, and the work lays the foundation for
    future economic growth, so science is not simply a luxury to be
    funded in strong economic times. This is a particularly good
    time. It was part of the ARRA, a large and important part, and
    we see that it, as intended, provided jobs in the short term,
    it is providing jobs in the midterm, and if the research pans
    out, as it always does usually in unpredictable ways, jobs for
    the long term as well.
        The report by the Information Technology and Innovation
    Foundation estimated that each additional $1 billion investment
    in research would create approximately 20,000 American jobs per
    year.
        So if I may, I would like to submit for the record a fuller
    testimony, and I would be happy to answer question.
        [The prepared statement of Rush Holt follows:]

     Prepared Statement of Hon. Rush D. Holt, a Representative in Congress
                          From the State of New Jersey

        Thank you Chairman Spratt, Ranking Member Ryan, and distinguished
    Members of the Budget Committee. I appreciate the opportunity to
    provide testimony on the proposed Fiscal Year 2011 budget and its
    investment in science and science education.
        We know that investing in innovation creates jobs and is the engine
    that drives our economy. We are living off of the investments that our
    country made two or three decades ago. Today, I urge my colleagues to
    make the investments that will propel our country forward for the next
    several decades.
        Indeed, the challenges of the 21st century require that we think of
    our system of innovation, beginning with basic research and ending with
    the manufacture of advanced goods and creation of new services, as
    fundamental to our nation's infrastructure. In the 20th century,
    construction of the interstate highway system and electrification in
    rural America were indispensible elements of our infrastructure. These
    investments were responsible for extraordinary economic growth in the
    last century. This century, our nation must invest in a new type of
    infrastructure to keep America competitive in a global economy.
                   important increases in president's request
        I am pleased President Obama's budget request recognizes the
    centrality of science and innovation for our future prosperity.
        The President's budget requests $31.4 billion for budget function
    250, which summarizes our investment in basic research, which is a 1.4
    percent increase over last year. Recognizing that this budget function
    does not capture all research spending, the President estimates that
    $61.6 billion of his budget is for non-defense research, which is a 5.6
    percent increase. These investments in basic science include $7.4
    billion for NSF, $5.1 billion for the DOE Office of Science, and $920
    million for the National Institute of Standards and Technology (NIST)
    laboratories. I am pleased that this budget would reverse years of
    neglect for science and make a significant down-payment on the
    President's plan to double basic research funding for these agencies
    over the next 10 years. I urge you to make this necessary investment in
    innovation.
        I also support the budget request in its goal to make permanent the
    R&D tax credit. This tax credit has been successful, returning $2 in
    private research investment for every dollar spent. As important as the
    R&D tax credit has been, it has never been a permanent part of the tax
    code and is expired currently. While Congress has extended the credit,
    making the R&D tax credit permanent will strengthen the incentive for
    businesses to invest in long-term research, because corporate leaders
    will know their research investments will be rewarded year after year.
    This would create jobs now, give businesses the confidence to expand
    their research operations, and encourage companies to further invest in
    innovation.
                             education and training
        In today's tight budget environment, I applaud the Obama
    Administration for proposing historic increases in the federal
    government's commitment to science education. I was pleased to see $300
    million in the Department of Education budget for improving teaching
    and learning in science and math. While I am still reviewing the
    proposed initiative to replace the Mathematics and Science Partnerships
    program, we must recognize that great teachers are made, not born. I
    feel strongly that any new program must continue to support
    professional development activities for science and math teachers as
    they seek to improve their craft. In addition, any new program must
    ensure that professional development programs are widely available
    across the country, not just to a few schools that compete successfully
    because they are already top notch.
        Improving our children's abilities in science and math is critical
    for our economy, our national security, and our democracy. Everyone,
    from scientist to teacher to parent to businessperson, should be
    concerned with how well we educate our children in these areas.
          research creates jobs and lays the groundwork for the future
        In these troubled economic times, science is the ideal investment
    because it provides jobs now while laying the foundation for our future
    economic growth. Science is not simply a luxury to be funded during
    strong economic times. A report by the Information Technology and
    Innovation Foundation estimated that each additional $1 billion
    investment in research would create approximately 20,000 American jobs
    a year. This investment would provide jobs not just to scientists but
    even more to research students, electricians who wire the labs, lab
    technicians who run the instrumentation, construction workers who will
    renovate the buildings, and many more.
        I look forward to working with the Congress to make this necessary
    investment for our economy and creating jobs for American workers.

        Mr. McGovern. Without objection. Well thank you very much,
    we appreciate you being here, you have raised some important
    issues, and I agree with you that investments in science not
    only have an immediate payoff in terms of job creation, but
    also a long term impact, and I think what you have said today I
    think will resonate with this committee, and we appreciate you
    being here.
        Mr. Holt. Thank you, Mr. Chairman.
        Mr. McGovern. Thank you. Right now we will turn to the
    Honorable Tom Perriello of Virginia. We welcome you to the
    Committee and you may proceed.

     STATEMENT OF HON. THOMAS S.P. PERRIELLO, A REPRESENTATIVE IN
                  CONGRESS FROM THE STATE OF VIRGINIA

        Mr. Perriello. Thank you very much Mr. Chair and all the
    members of the committee.
        We are embarking on our constitutional duty, and I think as
    we do so we can keep two principals in mind. One, wherever
    possible we need to focus on investments rather than
    expenditures, things that give us a return on that investment
    in both a public and financial sense.
        Second, we need to think in terms of rebuilding America's
    competitive advantage. While we are on our way out of one of
    the worst recessions of the last century, we also must realize
    this isn't as simple as getting back to where we were a couple
    of years ago.
        For many in the working and middle class of this country we
    have seen our purchasing power disappear, we have seen jobs go
    overseas, and we must take this opportunity to take a look more
    broadly at the incentives we are sending in our system and
    whether we are rewarding innovation as opposed to bailing out
    failure, and whether we are rebuilding a competitive advantage
    so that this is an area where every business in the world wants
    to locate.
        In order to do so we need to make investments in several
    years. One in infrastructure, a second is education in
    workforce development.
        On the infrastructure side we must have a budget that
    begins to fill the enormous gap of the last 30 years in
    addressing our infrastructure. Sometimes that is the highway
    and bridges that people see, sometimes it is rail, and that
    must include both passenger and freight. These things increase
    significantly the efficiencies of our companies in our economy,
    increase safety, and increase quality of life so that people
    can spend more time with their families. But it also is the
    next generation of technology, including smart technology,
    broad band access, and other issues. And as we pursue this we
    need to make sure these technologies are not only available to
    those in areas of high population density such as our urban and
    suburban cores, but also those areas of lower population
    density like our rural communities and small towns.
        In addition, we must look at the issue of education in
    workforce development. We must focus on the issue of earlier
    childhood development, understanding that we have already
    betrayed the promise of the American dream to so many children
    before they show up in kindergarten to begin their education.
    We must make sure that we are helping every child born in this
    country to reach their full potential as human beings.
        We must also understand while we continue to fight hard to
    make a college education accessible to all Americans who want
    it, but we must also treat with equal dignity those American
    youth who decide they do not want to go to college but want to
    learn a trade, learn skills, enter the workforce and maybe
    someday own their own business, understanding that the
    strongest path from poverty in the middle class in this country
    is still to learn a trade and become the small business owner.
        In this way we must not only be preparing using our middle
    and high school years to prepare kids for college, we must be
    preparing them for the 21st century workforce they are walking
    into.
        We must take a broad and aggressive view of what it means
    to train and develop that workforce using our public schools,
    using our community college system, vocational and skill
    training programs, and having those fully integrated.
        We also must take this same mentality of investment over
    expenditure when we look at our foreign policy, understanding
    that the cheapest wars are the wars we never have to fight in
    the first place because of investments we have made in our
    diplomatic and intelligence core.
        We must understand as we move forward in the 21st century
    that with the threat of non-state actors and state actors alike
    we must make unprecedented investments in the kind of
    intelligence and diplomacy efforts that will help us not only
    prevent wars, but when such time comes that such wars are
    necessary we have given our troops all of the information they
    need to fight as efficiently and effectively as possible.
        We also must understand why we look for good reason at the
    sectors of the next economy, such as high-tech, biomed and
    other areas, that we don't forget the enormous role that
    forestry and agriculture still play in the country. This is
    still one of the areas that we out compete the rest of the
    world, and as we head into the 21st century we must make sure
    that we are helping those sectors to out compete again in the
    decades ahead.
        A big portion of this will involve investments in the new
    energy economy. The new energy economy offers the chance not
    only to reduce the huge electric bills that our farmers pay,
    but take them off of the grid all together. That is what true
    independence looks like, that is what the new economy looks
    like, but we don't get from here to there with speeches, we get
    there with investment and with innovation.
        We need to think of this as a moment for us to take leaps
    of technology. Computers that once took up an entire warehouse
    now fit into the palm of our hands. The digesters that can help
    convert cow manure or poultry waste into the energy of the
    future will not occur immediately, they will occur by us
    investing in the path breaking technology to get there.
        So whether it is smart technology or high speed rail,
    whether it is old school highways or whether it is
    intelligence, I hope this budget will continue to emphasize
    rewarding innovation instead of bailing out failure, and
    understanding we must rebuild America's competitive advantage.
        Thank you for your time.
        [The prepared statement of Tom Perriello follows:]

     Prepared Statement of Hon. Thomas S.P. Perriello, a Representative in
                      Congress From the State of Virginia

        Chair Spratt, Ranking member Ryan, and respected members of the
    committee, thank you for today's opportunity for all members of the
    House of Representatives to have their voices heard on this year's
    budget resolution. A year ago, this Congress acted boldly to pass the
    American Recovery and Reinvestment Act to stem the economic crisis and
    put Americans back to work. Although much has been done, there is still
    work to in investing in America, creating jobs, and boosting the
    economy. Investments in transportation infrastructure provide some of
    the highest benefits per dollar in putting people back to work and
    creating economic growth.
        However, as the American people enter 2010, we continue to face a
    severe economic crisis. Although our efforts toward recovery have
    produced meaningful and tangible results, our families, businesses, and
    communities continue to suffer from high unemployment, lost savings,
    and tightened budgets. In Virginia's 5th district, unemployment is at
    the highest in the state, with rates reaching as high as 20% in
    Martinsville. With these challenges in mind, I thank the House Budget
    Committee for your commitment to job creation and economic growth in
    the Fiscal Year 2011 budget.
        There are many areas of infrastructure that have been underfunded
    and neglected for too long. Highways and bridges are in need of repair.
    Public transit services and jobs are being cut across the nation.
    Improving public transportation not only creates the immediate direct
    benefit of employing workers, but a multitude of indirect benefits
    through the benefits of mobility provided to all Americans. Better
    transportation makes it easier for laid off and unemployed workers to
    find jobs without the need to move, saving them an expensive upfront
    cost of new employment.
        I recognize that in light of the limits of these grim economic
    times, we must carefully prioritize the programs that will receive
    strong investments in the next fiscal year; however, I feel that it is
    of highest importance that we continue to support efforts that will
    continue to promote recovery. With that in mind, I ask that this
    commitment to jobs be bolstered by a serious effort to shore up our
    nation's crumbling infrastructure. As a member of the Transportation
    and Infrastructure Committee, I am especially committed to supporting
    transportation projects, which are vital to job protection and
    creation. Investing in transportation is particularly beneficial to
    those who have been hit hardest by the recession, including low-wage
    workers and workers without college degrees.
        By adequately funding these programs we will continue the critical
    work begun by Congress last year. We must seize this opportunity both
    to put Americans back to work as soon as possible and to lay the
    foundation for our future. The surest way forward for Virginia's 5th
    district and for our nation is to make sure our citizens can obtain and
    keep jobs that help them support their families.

        Mr. McGovern. And thank you very much for your thoughtful
    testimony, and we appreciate your contribution to this
    Congress, and you can be assured that every member of the
    committee will carefully consider what you have said here
    today. Thank you.
        Mr. Perriello. Thank you.
        Mr. McGovern. It is now my pleasure to welcome the
    Honorable Carolyn McCarthy from New York, and the floor is
    yours. I should say we have seven minutes and 44 seconds left.

        STATEMENT OF HON. CAROLYN McCARTHY, A REPRESENTATIVE IN
                  CONGRESS FROM THE STATE OF NEW YORK

        Ms. McCarthy. I will make it quick. I want to thank the
    Chairman for allowing me to testify in front of this Committee.
        Going back in January of 2008 we were able to pass
    unanimously here in the House and in the Senate H.R. 2640. This
    is the bill that would basically be helping our states be able
    to upgrade their computer systems, for people that should be
    able to buy guns and people that shouldn't be able to buy guns,
    and I think that is an important piece.
        Millions of criminal records are currently missing from the
    databases that make up NICS due to funding restrictions and
    technology use, which is not at the level it should be.
        With that being said, we have seen unfortunately many
    horrific crimes in the last several years on people that have
    bought guns that shouldn't have been able to buy them, Virginia
    Tech being one, a shooting in my own district going back a
    number of years ago, and then last year in a Baptist church.
        What we are looking for today is to continue to put the
    money forth. I know the money is very tight in the budget right
    now, and I know everybody is under restraint, but if you look
    at how much money we can actually save on life and certainly
    injuries from those that are doing these shootings we could
    save a lot more money on the end.
        Unfortunately we are seeing every day that more and more
    people are slipping through the NICS system. The NICS system
    does work, but a program is only as good as the information
    that they have in it.
        So I am hoping that the budget will see clear that the NICS
    Improvement Act of 2007 corrects the primary flaw of the
    thousands of individuals precluded from purchasing firearms
    from doing so. These numbers prove that NICS works well and
    will continue to work; however, since NICS is only as good as
    the information as I said, it is estimated that almost than 40
    million records are missing from the various databases that
    make up NICS.
        By providing this funding we will move one step closer to
    bringing the records of millions of barred individuals into
    NICS. That certainly makes it safer for all Americans. This
    does nothing against anyone's ownership as far as guns, just
    saying that you have to go through the NICS systems, and those
    that have been adjudicated not to be able to buy a gun have to
    be into those systems.
        So I ask certainly the Budget Committee to see their way as
    much as they possibly can for $375 million in the fiscal year
    2011 of the budget resolution under the Department of Justice
    to order to fully fund the NICS Improvement Act, and I thank
    you for your time.
        [The prepared statement of Carolyn McCarthy follows:]

       Prepared Statement of Hon. Carolyn McCarthy, a Representative in
                      Congress From the State of New York

        Thank you Chairman Spratt, Ranking Member Ryan, and Members of the
    Budget Committee.
        I appreciate your allowing me to testify today in support of
    including necessary funding in the Fiscal Year 2011 Budget Resolution
    under the Department of Justice to implement H.R. 2640, the NICS
    Improvement Amendments Act of 2007, Public Law Number 110-180.
        H.R. 2640 was signed into law on January 8, 2008, after having
    passed both the House and Senate unanimously.
        I know the budget is especially tight this year, Mr. Chairman, but
    fully funding this program is so important because currently the
    National Instant Criminal Background Check System, or NICS, is deeply
    flawed.
        NICS is a national database system that flags individuals precluded
    under current law from purchasing and possessing firearms.
        MILLIONS of criminal records are currently missing from the
    databases that make up NICS due to funding restrictions and technology
    issues at the state level.
        Many states have not automated individuals' records concerning
    mental illness, restraining orders, or misdemeanor convictions for
    domestic violence.
        Simply put, NICS must be updated on the state level so that it can
    properly function on the federal level.
        The shooting that occurred last year at First Baptist Church in
    Merryville Illinois and sadly occurs in communities around the country,
    reminds me of a similar shooting that took place in my district at Our
    Lady of Peace Church in Lynbrook NY in 2002.
        Peter Troy purchased a twenty-two caliber semi-automatic rifle. He
    had a history of mental health problems and his own mother had a
    restraining order against him as a result of his violent background.
        Four days later, Mr. Troy walked into Our Lady of Peace Church in
    Lynbrook New York and opened fire, killing the Reverend and a
    parishioner.
        It was illegal for him to purchase a gun, but for many reasons he
    was able to slip through the NICS system.
        The breakdown in the system is further underscored by the
    circumstances surrounding the shootings that took place at Virginia
    Tech in April of 2007
        The shooter in the Virginia Tech massacre was also prohibited from
    legally purchasing a firearm.
        Unfortunately, flaws in the NICS system allowed his record to slip
    through the cracks and he was able to purchase two handguns, and used
    them to brutally murder THIRTY TWO individuals.
        He passed a Brady background check because NICS did not have the
    necessary information.
        Sadly, this same scenario, continues to happen every day.
        The NICS Improvement Amendments Act requires all states to provide
    NICS with the relevant records needed to conduct effective background
    checks.
        It is the state's responsibility to ensure this information is
    current and accurate. They must update their records to ensure violent
    criminals do not have access to firearms. And then, they must share the
    information with NICS.
        However, I recognize many state budgets are already overburdened.
        This law distributes grants to states to update their records and
    provide those records to NICS.
        States will receive the funds they need to make sure relevant
    records are up-to-date.
        While NICS has flaws, the NICS Improvement Amendments Act of 2007
    corrects the primary flaw and will prevent thousands of individuals
    precluded from purchasing firearms from doing so.
        Approximately NINE-HUNDRED AND SIXTEEN THOUSAND individuals were
    precluded from purchasing a firearm for failing a background check
    between November 30, 1998, when NICS began operating, and December 31,
    2004.
        During this same period, nearly FORTY NINE MILLION Brady background
    checks were processed through NICS.
        These numbers prove that NICS works and will continue to work.
    However, since NICS is only as good as the information it contains, we
    must ensure that NICS has the most up-to-date records to stop
    criminals, those adjudicated as mentally ill, and those under a
    restraining order from purchasing firearms.
        It has been estimated that more than 40 million records are missing
    from the various databases that make up NICS.
        By providing this funding, we will move one step closer to bringing
    the records of millions of barred individuals into NICS.
        This law imposes no new restrictions on gun owners and does not
    infringe on the 2nd Amendment rights of law-abiding citizens. It simply
    makes improvements to a program that saves lives.
        I respectfully request that you include $375 million in the Fiscal
    Year 2011 Budget Resolution under the Department of Justice in order to
    fully fund the NICS Improvement Amendments Act of 2007.
        Thank you for your time and I would be happy to answer any
    questions you may have.

        Mr. McGovern. Well thank you very much, and I certainly
    agree with you and I hope that the rest of my colleagues do,
    but I appreciate you being here. Thank you.
        Ms. McCarthy. Thank you.
        Mr. McGovern. Mr. Green. We are happy now to welcome the
    Honorable Gene Green from Texas. Thank you for being here.

    STATEMENT OF HON. GENE GREEN, A REPRESENTATIVE IN CONGRESS FROM
                           THE STATE OF TEXAS

        Mr. Green. Thank you, Mr. Chairman, and I know we just have
    a few minutes before votes, and I would like to ask unanimous
    consent to place my full statement in the record.
        Mr. McGovern. Without objection.
        Mr. Green. But also insert in the record a letter that 19
    Democrats sent to Chairman Spratt concerning the energy taxes
    increases in the President's budget.
        I want to thank you for allowing me to present my views on
    the 2011 budget resolution. The committee is faced with many
    difficult choices as it crafts this year's budget.
        Energy provisions particularly are a concern because the
    President's budget includes several tax increases aimed at
    America's natural gas and oil industry. Without increasing
    supply from our vast North American natural gas resources, or
    we make it more expensive and difficult to produce natural gas
    domestically, it will actually hinder our ability to meet our
    potential climate change goals while also increasing the
    natural gas prices for American consumers and business. Any
    climate change policy will inevitably rely on clean natural
    gas, which emits half the carbon dioxide emissions of coal, as
    a short-term bridge fuel while our economy transforms to lower-
    carbon energy standards.
        Ninety percent of the oil wells drilled within America are
    by independent producers. They produce 82 percent of American
    natural gas and 68 percent of American oil. The average
    independent producer has 12 employees. The definition of a true
    small business, and that is why these taxes would hit those
    definitely small business, and we need them producing.
        The second issue, Mr. Chairman, is the NASA budget proposal
    under the President's act. I have concerns about the
    President's proposal to cancel NASA's Constellation Program,
    which includes the Orion Crew Capsule, Altair Lunar Lander, and
    the Ares I and Ares V rockets. These programs, which together
    comprise our human spaceflight program, were authorized in both
    2005 and 2008 by Republican and Democratic Congresses,
    respectively.
        It is under the Constellation Program that NASA is
    currently developing new launch vehicles and spacecraft travel
    to the moon, Mars and other destinations.
        Not only does canceling the Constellation Program
    jeopardize America's leadership role in human space
    exploration, but it will have detrimental effects on our
    economy.
        And I know not in my district, but in a neighboring
    district, the Johnson Space Center in Houston has the lead to
    manage the Constellation Program and several of its major
    elements. Without Constellation, the Johnson Space Center would
    lose anywhere from 4,000 to 7,000 high-tech jobs. And these are
    4,000 direct jobs and an additional 2,315 indirect. Loss of the
    income and expenditures could be as high as $567 million.
        With the loss of these direct jobs these scientists and
    researchers will go somewhere else, and there are other
    countries in the world who would like to eclipse us in our
    effort in NASA both for the science, but also in the effort to
    learn about our own planet.
        Given our current economic downturn the possibility of
    losing these jobs in our area, plus in other parts of the
    country from NASA installation, it just doesn't fit in to what
    we are trying to do, expand our economy particularly with high-
    tech.
        And with that, Mr. Chairman, I appreciate the ability to
    put my whole statement in the record.
        [The prepared statement of Gene Green follows:]

      Prepared Statement of Hon. Gene Green, a Representative in Congress
                            From the State of Texas

        Chairman Spratt, Ranking Member Ryan and Members of the Committee:
        I am pleased to be here today to provide my views on the Fiscal
    Year 2011 Budget Resolution.
        This committee is faced with many difficult choices as it crafts
    this year's congressional budget.
        Democrats and Republicans must work together to produce a budget
    that simultaneously helps meet our economic, health care, energy, and
    social challenges.
                               energy provisions
        Unfortunately, the President's budget again includes several tax
    increases aimed at America's natural gas and oil industry.
        Without increasing supply from our vast North American natural gas
    resources, or if we make it more expensive or difficult to produce
    natural gas domestically, it will actually hinder our ability to meet
    any potential climate change goals while also increasing natural gas
    prices for American consumers and business.
        Any climate change policy will inevitably rely on clean natural
    gas--which emits half the carbon dioxide emissions of coal--as a short-
    term ``bridge'' fuel while our economy transforms to lower-carbon
    energy sources.
        Natural gas is also required to make energy-efficient products,
    make wind turbine blades and solar panels, provide back-up power for
    intermittent renewable energy sources, and to run biomass facilities.
        Most importantly, now is not the time to weaken economic
    opportunities in our domestic energy industry with punitive tax hikes.
        America's independent producers are responsible for 90% of the
    wells drilled in America, and they produce 82% of American natural gas
    and 68% of American oil.
        The average independent producer company has 12 employees--the
    definition of a true small business. Increasing costs on the energy
    industry and on U.S. companies operating abroad will jeopardize these
    small business jobs, export production overseas, and increase our
    reliance on foreign sources of energy.
                                      nasa
        Additionally, Mr. Chairman, I have concerns about the
    Administration's proposal to cancel NASA's Constellation Program, which
    includes the Orion Crew Capsule, the Altair Lunar Lander, and the Ares
    I and Ares V rockets.
        These programs, which together comprise our human spaceflight
    program, were authorized in both 2005 and 2008 by Republican and
    Democratic Congresses respectively.
        It is under the Constellation program, that NASA is currently
    developing new launch vehicles and spacecraft capable of travel to the
    moon, Mars and other destinations.
        Not only does cancelling the Constellation Program jeopardize
    America's leadership role in human space exploration, but it will have
    detrimental effects on our economy.
        Take, for example, the Johnson Space Center in Houston, Texas. The
    Johnson Space Center has the lead to manage the Constellation Program
    and several of its major elements, including the Orion Crew Exploration
    Vehicle and the Altair Lunar Lander.
        Without Constellation, the Johnson Space Center could lose anywhere
    from 4,000 to 7,000 high-tech jobs.
        If the JSC loses 4,000 direct jobs, an additional 2,315 indirect
    jobs would be lost, totaling 6,315; loss of income and expenditures
    locally would be over $567 million.
        If the JSC loses 7,000 direct jobs, an additional 4,052 indirect
    jobs would be lost, totaling 11,052; loss of income and expenditures
    locally would total almost $1 billion.
        Additionally, the aerospace industry would lose as many as 20,000--
    30,000 jobs nationally in either of these scenarios.
        Given our current economic downturn, we cannot take the possibility
    of these job losses lightly and the Johnson Space Center is just one
    example of what the cancellation of this program would do to other NASA
    centers nationally.
        Finally, it will take years for the commercial spaceflight industry
    to get up to speed to reach the level of competence that exists at NASA
    today.
        Our government has already invested literally years and billions of
    dollars into this program. We should build upon these investments and
    not abandon them.
        Our country can support the commercial spaceflight industry, but
    not at the expense of our human spaceflight program, which for years
    has inspired future generations and driven technology that enhances our
    quality of life.
        That is why it is my hope, Mr. Chairman, this Committee and this
    Congress will continue to support NASA's Constellation Program and to
    support balanced energy policies that promote economic growth and will
    help us meet our clean energy goals.
        Thank you.

        [Additional submission of Mr. Green follows:]

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Mr. McGovern. Without objection. We appreciate your
    excellent remarks, and we certainly will consider all of your
    suggestions. Thank you for being here.
        Mr. Green. Thank you.
        Mr. McGovern. The Budget Committee will now stand in a
    short recess.
        [Recess.]
        Ms. Kaptur [presiding]. The hearing will come back to
    order. We want to welcome the members. This is a member day for
    testimony, and we apologize for keeping you waiting a few
    moments, and we would like to begin with our esteemed colleague
    from the State of California, Congresswoman Lynn Woolsey.

     STATEMENT OF HON. LYNN WOOLSEY, A REPRESENTATIVE IN CONGRESS
                      FROM THE STATE OF CALIFORNIA

        Ms. Woolsey. Thank you, Madam Chairwoman. Thank you for
    allowing me to testify today. I appreciate the hard work of
    this Committee, and I look forward to working with the
    Committee to develop a fiscal year 2011 budget that addresses
    the immense challenges facing our country.
        Madam Chairwoman, the Congressional Progressive Caucus
    supports creating jobs and investing in our economy by reducing
    wasteful Cold War spending, by getting our troops safely home
    from Iraq and Afghanistan, by cutting waste, fraud, and abuse,
    and offering a robust public option in the health reform bill.
        Like you, the CPC is very concerned about the state of the
    economy, and our approach is to cut wasteful defense spending
    so that we refocus the budget so that it is in line with the
    values of our nation's working families.
        The CPC budget, meaning the Congressional Progressive
    Caucus budget, reinvests in the middle class with aggressive
    job creation programs and support for projects so we will get
    America moving again toward a prosperous and secure future.
        To accomplish this goal, Madam Chairwoman, the CPC budget
    cuts defense spending in three ways. First by safely
    redeploying our troops from Iraq and Afghanistan, next reducing
    our nuclear weapons arsenal, and thirdly removing funding for
    outdated Cold War-era weapon systems. The United States doesn't
    just lead the world in defense spending; we almost outspend the
    rest of the world combined. That is right, a full 43 percent of
    the world's defense spending comes from the United States, and
    the U.S. alone, and when you add in what our NATO allies spend
    we are well over 50 percent.
        Our annual defense budget dwarfs that of our biggest
    rivals. We spend four times as much as China, and eight times
    as much as Russia. The President himself has said, Madam
    Chairwoman, that we need to reform our defense budget so that
    we are not paying for Cold War-era weapons systems that we
    don't use. And I couldn't agree more.
        For the past several years the Progressive Caucus has
    introduced an alternative budget that does just that. We can
    see immediate savings by eliminating over $60 billion in
    unneeded spending at the Pentagon, much of which is spent on
    systems like the V-22 Osprey and the Virginia Class Submarine,
    which were built to fight the next generation of Soviet
    weapons.
        Madam Chairwoman, we are building weapons to beat weapons
    that have never even been built. We can save $15 billion a year
    by reducing the number of nuclear warheads in our arsenal from
    10,000 to 1,000, which is still more than we will ever need,
    and more than enough to blow up the world many times over.
        Missile Defense has never been proven and just doesn't make
    sense in facing our current military challenges. We can save
    another $8 billion by drastically scaling back the Ballistic
    Missile Defense System. The Cold War has been over, Madam
    Chairwoman, for almost twenty years, it is time these weapons
    programs are ended.
        Current events and modern warfare have passed these weapons
    by. It is time that the DoD take stock with a critical eye and
    spend money only on what it needs, not on what it wants.
        Along with scrapping these weapons, we can achieve a
    massive reduction in the Pentagon's budget by ending the
    occupations of Iraq and Afghanistan. By bringing our troops
    safely home now and not increasing our military presence we can
    save $159 billion next year.
        The initial invasion of Iraq made no sense, most of us
    agree to that, and with the current financial problems we are
    facing it makes even less sense. We have already spent over
    $700 billion in Iraq, and the cost is estimated to be $3
    trillion in the end even if we act now.
        In Afghanistan we have spent more than $250 billion, and
    the date for redeployment keeps getting pushed back with more
    and more men and women in uniform being put in harm's way and
    killed at record rates.
        Madam Chairwoman, I thank this Committee for the language
    included in previous budgets that instructs the GAO to continue
    to search to find fiscal waste, fraud, and abuse at the
    Pentagon, and I look forward to continuing to work on this
    issue with the committee.
        We must get defense spending under control if we are going
    turn our economy around. So please consider making the
    aforementioned defense spending cuts a part of the Democratic
    budget for the fiscal year 2011.
        I thank you again for allowing me to come before your
    committee to express my views, and I look forward to any
    questions you or our colleagues may have.
        [The prepared statement of Lynn Woolsey follows:]

        Prepared Statement of Hon. Lynn C. Woolsey, a Representative in
                     Congress From the State of California

        Chairman Spratt, Ranking Member Ryan, and Members of the Budget
    Committee, thank you for allowing me to testify today. I appreciate
    your hard work, and look forward to working with you to develop a
    Fiscal Year 2011 budget that addresses the immense challenges facing
    our country.
        Mr. Chairman, the Congressional Progressive Caucus (CPC) supports
    creating jobs and investing in our economy by reducing wasteful Cold
    War spending, getting our troops safely home from Iraq and Afghanistan,
    cutting waste, fraud, and abuse, and offering a robust public option in
    the health reform bill.
        Like you, the CPC is very concerned about the state of the economy,
    and our approach is to cut wasteful defense spending refocusing the
    budget so that it's in line with the values of our nation's working
    families.
        The CPC budget reinvests in the middle class with aggressive job
    creation programs and support for projects that will get America moving
    again toward a prosperous and secure future.
        To accomplish this goal, the CPC budget cuts defense spending in
    three ways: by redeploying our troops from Iraq and Afghanistan,
    reducing our nuclear weapons arsenal, and removing funding for outdated
    Cold War-era weapons systems.
        The United States doesn't just lead the world in defense spending;
    we almost outspend the rest of the world combined.
        That's right, a full 43% of the world's defense spending comes from
    the U.S., and the U.S. alone, and, when you add in what our NATO allies
    spend, we are well over 50%.
        Our annual defense budget dwarfs that of our biggest rivals * * *
    we spend four times as much as China, and eight times as much as
    Russia.
        The President himself has said that we need to ``reform our defense
    budget so that we're not paying for Cold War-era weapons systems we
    don't use.''
        And I couldn't agree more. For the past several years, the
    Progressive Caucus has introduced an alternative budget that does just
    that.
        We can see immediate savings by eliminating over $60 billion in
    unneeded spending at the Pentagon, much of which is spent on systems
    like the V-22 Osprey and the Virginia Class Submarine, which were built
    to fight the next generation of Soviet weapons. Mr. Chairman, we're
    building weapons to beat weapons that have never even been built.
        We can save $15 billion a year by reducing the number of nuclear
    warheads in our arsenal from 10,000 to 1,000 * * * which is still more
    than we'll ever need, and, more than enough fire power to blow up the
    world many times over.
        Missile Defense has never been proven and just doesn't make sense
    in facing our current military challenges. We can save another $8
    billion by drastically scaling back the Ballistic Missile Defense
    System (BMDS).
        The Cold War has been over for almost twenty years, it's time these
    weapons programs are ended. Current events and modern warfare have
    passed these weapons by. It's time that the DoD take stock with a
    critical eye and spend money on only what it needs, not what it wants.
        Along with scrapping these weapons, we can achieve a massive
    reduction in the Pentagon's budget by ending the occupations of Iraq
    and Afghanistan. By bringing our troops safely home now and not
    increasing our military presence, we can save $159 billion next year
    alone.
        The initial invasion of Iraq made no sense, and with the current
    financial problems we are facing it makes even less sense. We've
    already spent over $700 billion in Iraq, and the cost is estimated to
    be $3 trillion even if we act now.
        In Afghanistan, we've spent more than $250 billion and the date for
    redeployment keeps getting pushed back with more and more men and women
    in uniform being put in harm's way and killed at record rates.
        Mr. Chairman, I thank this committee for the language included in
    previous budgets, instructing the GAO to continue its search to find
    fiscal waste, fraud, and abuse at the Pentagon, and I look forward to
    continuing to work on this issue with the Committee.
        Mr. Chairman, we must get defense spending under control if we are
    going turn our economy around. Please consider making the
    aforementioned defense spending cuts a part of your budget for Fiscal
    Year 2011. Thank you again for allowing me to come before your
    committee to express my views. I look forward to any questions you or
    our colleagues may have.
        It's time to reinvest in our nation's security and prosperity and
    reject cold war thinking. I ask that you support this common sense
    approach.

        Ms. Kaptur. Thank you very much Congresswoman Woolsey, and
    thank you for your superb work on your own subcommittee, but
    also as a co-chair of the Congressional Progressive Caucus. You
    make a really valuable and vital contribution to our
    deliberations, and we will take in the committee heed of your
    words and attempt to shape a budget that is balanced. Thank you
    so very much.
        Ms. Woolsey. Thank you.
        Ms. Kaptur. We would like to hear now from Congressman John
    Mica of Florida. Welcome.

     STATEMENT OF HON. JOHN L. MICA, A REPRESENTATIVE IN CONGRESS
                       FROM THE STATE OF FLORIDA

        Mr. Mica. Well thank you so much and appreciate the
    opportunity to appear before the Budget Committee. And I was
    thinking I don't think I have come before the Budget Committee
    well in more than a decade. Usually if I have some
    recommendation we submit it, but I thought it was incumbent as
    the Ranking Member of the Transportation and Infrastructure
    Committee to express my concern about a budget proposal which I
    think needs the attention of this committee and the attention
    of Congress, and I would to submit a longer statement if I may
    for the record.
        Ms. Kaptur. Without objection your entire statement will be
    included in the record. For some reason, Congressman, we don't
    have a statement in the record currently, and so we thank you.
        Mr. Mica. Okay, well we will provide you that, then I have
    a statement--actually a statement by Congressman Elijah
    Cummings who is Chairman of the Coast Guard and Maritime
    Subcommittee, and I would like that and also myself and Mr.
    LoBiondo as Ranking Member of the full committee on the Coast
    Guard Subcommittee, we have a letter to Mr. Obey, the
    Appropriations Committee, if we could either reference those or
    put them in the record I would be grateful.
        Ms. Kaptur. Without objection they will be placed in the
    record.
        Mr. Mica. And if I might I would just take a minute or two
    and summarize my concerns today. One of our six subcommittee
    areas and areas of jurisdiction, even though we split some
    jurisdiction with Homeland Security, is the United States Coast
    Guard. These incredible men and women are our first line of
    domestic defense, national security, and maritime safety.
        The Obama Administration proposed cutting almost 1,100
    positions from the Coast Guard. In addition to that, they are
    proposing cutting some assets which we think are extremely
    important.
        One of the assets are five domestic helicopters that are
    used, and those helicopters actually, although the five they
    are talking about are used domestically outside of Florida,
    would result in two net decrease in Florida's patrolling for
    drugs, illegal immigrants, and guarding our coastline which is
    an important responsibility.
        And then I just got some horrible news just a few minutes
    ago from the staff director of our Coast Guard Subcommittee,
    that one of the five helicopters that they were scheduling to
    decommission crashed. We don't know if there is a loss of life.
    They are survivors, but these assets are extremely important
    and we lost one of them just within hours of my presentation
    here.
        But this is not the time to be cutting those assets, and
    this is not a bipartisan statement, Mr. Cummings' statement
    which I ask to be part of the record, and I think every
    Democrat when they came before us, the Administration, to
    account for the budget just in the last few days they all spoke
    unanimously for restoration of some of the proposed cuts.
        And again, you have the Republican side of the aisle, and
    Mr. Oberstar, our Chairman, also asked me at a hearing a few
    hours ago to relay his concern and support for restoration.
        So there are the five helicopters, 1,100 positions, and
    almost a quarter of a billion dollars will be taken from
    customs and border protection funds in the proposal, so we
    think that that is not wise.
        Now, I didn't come just to tell you to add money without
    having a positive solution. The budget does include a provision
    for expanding TSA bureaucracy by 4,500 positions bringing the
    total number of TSA employees to well over 60,000.
        Now you are looking at the individual who was primarily
    responsible for the creation of TSA working in a bipartisan
    fashion after 9/11. We never intended an agency that started
    out with 16,500 screeners to get to this number, nor did we
    intend for the bureaucracy now. The latest figures that I have
    are there are 8,700 administrative staff in TSA across the
    country and over 3,000 administrative staff, and all of these
    making on average over $100,000 in just Washington, D.C.
        So I would strongly recommend that we do not have to deploy
    these additional folks, that there could be some efficiency,
    and our committee would work with the Budget Committee and the
    Committees of Jurisdiction and Appropriations to ensure that we
    have better utilization of funds in the Transportation Security
    Administration and not cut the positions in the Coast Guard.
        So that is a positive alternative that we would ask you to
    look at in the appropriate committees of jurisdiction.
        So those are two of my major concerns. I know you have very
    important responsibilities and difficult choices at a time when
    our nation is facing fiscal constraints and huge deficits, but
    on a positive note we hope that this can be looked at and we
    can work with you.
        Mr. Cummings, Mr. Lobiondo, I know myself and others have
    all pledged to do whatever it takes to try to find the
    resources to at least keep the coast guard whole. Thank you.
        [The prepared statement of John L. Mica follows:]

     Prepared Statement of Hon. John L. Mica, a Representative in Congress
                           From the State of Florida

        Mr. Chairman, protection of the nation's borders, ports and
    waterways could be severely undermined by funding cuts to the Coast
    Guard and Customs and Border Protection proposed by the Obama
    Administration.
        The Administration is gutting some of our frontline defenses
    against terrorism by cutting over 1,000 positions from the Coast Guard
    and Customs and Border Protection. The Administration proposes to cut
    funding needed to secure our borders within the Customs and Border
    Protection by more $225 million.
        At the same time, the Administration proposal expands the bloated
    bureaucracy of the Transportation Security Administration (TSA) by
    another 4,500 employees bringing the total number of TSA employees to
    more than 60,000.
        The American people expect the federal government to live within
    its means, but this is not a simple question of cutting the federal
    budget. We cannot compromise on our capability to ensure the safety and
    security of our ports and borders in favor of more bureaucracy.
        TSA's growth is out of control with more than 3,000 administrative
    staff in Washington with average annual salaries of over $100,000, and
    another 8,700 administrative and management staff across the country.
    Instead of shortchanging border and port security, we could save money
    by cutting excessive administrative positions at TSA by 25 percent.
        We can further save money at TSA by eliminating the redundant and
    enormously wasteful practice of rescreening all international
    passengers arriving for domestic flights at the almost 100 domestic
    airports with direct international service. I believe TSA could make
    much better use of its personnel and resources, not to mention
    providing better security for passengers, by ensuring that passenger
    screening conducted at international departure airports is equivalent
    to that conducted in the United States. This would free up thousands of
    security screeners to be used in a more efficient and effective manner.
        TSA also maintains that each new Advance Imaging Technology (AIT)
    station requires 3 FTEs per shift and there may be 2 or 3 shifts per
    day. Increasing the number of AITs to 1800 will cost more than an
    additional $2 billion dollars.
        Without an Administrator for the past year, TSA desperately needs
    leadership and redirection of its resources. I cannot believe that TSA
    needs so many new positions to man new airport screening equipment
    while the Coast Guard starves.
        We cannot justify cutting resources to protect our borders and
    ports while growing the top-heavy, inefficient bureaucracy at TSA.
        I urge you to provide sufficient budget authority to restore the
    cuts proposed for the Coast Guard. Specifically,
         Restore $ 5.5 million for the 5 H-65 helicopters the
    budget proposes to eliminate. The service has spent considerable time
    and money modernizing and re-engineering the H-65 fleet, and sidelining
    these crucial assets is a mistake. Laying up these aircraft will reduce
    U.S. anti-drug surveillance in the transit zone used by those smuggling
    drugs and migrants in the Caribbean and the waters around my home state
    of Florida. The loss of the helicopters would also reduce the Coast
    Guard's hard-won ability to board suspected terrorist vessels at sea.
         Provide $108 million to fund long lead funding for
    National Security Cutter (NSC) # 6. The budget includes funds to build
    NSC #5, but without long lead funding for materials the shipyard cannot
    continue the seamless production of the next cutter in the planned
    series of 8 vessels.
         Provide $18.2 million to maintain all 12 Maritime Safety
    and Security Teams (MSSTs). MSSTs patrol our harbors daily, and provide
    the front line defense against terrorist attacks. These teams deter and
    respond to terrorist activities in and around U.S. ports and provide
    additional response capability for natural disasters and maritime
    accidents The terrorists in New York harbor won't wait as the Coast
    guard repositions assets from Boston.
         Restore funds for port, waterway and coastal security
    proposed to be cut by more than $100 million.
        I also urge you to include budget authority for Coast Guard
    programs directly to the Coast Guard budget. The Administration
    requests funds as part of the Navy and National Science Foundation
    (NSF) budgets that are intended to be transferred at a later date to
    the Coast Guard to cover Coast Guard operations. Those funds should be
    provided directly to the Coast Guard. The NSF funds are for polar
    icebreaking activities, and the Navy funds for overseas operation in
    support of the Department of Defense.
        It is said, ``Eternal vigilance in the price of freedom.'' We must
    provide our first responders with the tools they need to remain
    vigilant and keep us free.

        [Additional submissions of Mr. Mica follow:]

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Ms. Kaptur. Thank you so very much for your testimony. You
    are ranking on that subcommittee, are you not?
        Mr. Mica. I am ranking on the full committee.
        Ms. Kaptur. As well as on the full committee?
        Mr. Mica. Well, Mr. Oberstar and I sit on all six
    subcommittees, and I have six very competent ranking members on
    that committee, but again, this isn't a partisan issue, this is
    something the whole committee agrees on, including the
    subcommittees.
        Ms. Kaptur. Well I wanted the record to note, Congressman
    Mica, the importance of your position on that committee.
        Mr. Mica. Thank you, thank you.
        Ms. Kaptur. And for you to take time to come here today and
    both you and Congresswoman Woolsey have made proposals, but you
    have also provided suggestions for offsets and we greatly
    appreciate that, and we appreciate the time you have given
    today.
        Mr. Mica. Thank you.
        Ms. Kaptur. And all of those materials will be placed in
    the record, and believe me, will be shared with our colleagues
    as well as the staff.
        Mr. Mica. Thank you.
        Ms. Kaptur. Thank you so have much. And now we would like
    to turn to Congresswoman Laura Richardson from California.

        STATEMENT OF HON. LAURA RICHARDSON, A REPRESENTATIVE IN
                 CONGRESS FROM THE STATE OF CALIFORNIA

        Ms. Richardson. Chair Kaptur, Chairman Spratt, Ranking
    Member Ryan, and members of the committee, before I begin my
    comments let me also associate myself with our Ranking Member
    Mica in his comments about the Coast Guard. I serve on that
    committee as well, and I am in full agreement and attest to the
    bipartisan effort that he brought it in.
        Thank you for convening this hearing and allowing me and
    our colleagues the opportunity to share with the committee our
    budgetary priorities for fiscal year 2011.
        I ask for my entire statement to be included in the record
    of this hearing.
        Ms. Kaptur. Without objection it will be included.
        Ms. Richardson. Thank you. I represent the hardworking and
    hard pressed men and women, children, and businesses of the
    37th Congressional District who are going through the toughest
    economic times in recent memory. The unemployment rate in
    California still hovers around 12 percent, but in some areas of
    my district, such as Compton, it is closer to 20 percent.
        The foreclosure rate for California is 1 in 185, which is
    twice the national average which is 1 in 405. And in my
    district in Carson, the foreclosure rate is 4 times that, 1 in
    96.
        In a light of those thoughts is why I come to you, it is
    our budgetary response to these four greatest challenges that I
    approach you today; creating jobs, stemming foreclosures,
    aiding state and local governments, and strengthening the
    safety net that I wish to discuss with you.
        Number one, priority for jobs for Americans. I applaud the
    President's inclusion in the jobs package for fiscal year 2011
    of the 100 billion to fund it; however, I think we need to do
    more for young people, seniors, and small businesses that have
    been particularly hit.
        One of the things I tried to show some leadership on with
    older Americans. The President is suggesting that we would
    increase from full year 2009 the Senior Community Service
    Employment Program. Increase it to $825 million.
        I would support this of being a minimum of $700 million
    over the next five years.
        The next area would be jobs for recent college graduates.
    We are finding many college grads, even though they have done
    what their parents asked them to do, which was to go to school
    and get an education, they are finding out that they cannot
    compete in the workforce. And so I support the President's
    efforts of $33 billion to encourage small businesses to hire
    new employees at a $5,000 new hire tax credit, I would only
    suggest that we would increase that by another $2,500 if a
    small business hires a recent college grad.
        The third area would be in help for small businesses. I
    support the President's request to permanently eliminate the
    capital gains taxation on small businesses which is a cost of
    $8.1 billion and for $17.5 billion in the SBA Section 7(a) loan
    guarantees to provide small businesses with access to credit
    needed to expand and create jobs.
        The second area is investment in transportation and
    infrastructure. When it comes to creating jobs there is no more
    effective way, and we found this in our own stimulus, despite
    us fighting for more money in transportation and
    infrastructure, we have found that for the small amount that
    was received it has generated the greatest amounts of jobs.
    When you consider for every dollar that is invested in
    infrastructure at least $1.63 is reflected and generated in
    economic activity.
        We must pass the Surface Transportation Reauthorization
    Bill and provide funding for projects critical to our national
    greatness.
        Some of those problems are in my district, the Gerald
    Desmond Bridge located in Long Beach, California that carries
    ten percent of our entire nation's cargo. And I will repeat
    that, ten percent of our entire nation's cargo.
        We are fortunate in California, we are seeing a move
    towards high speed rail, but more needs to be done.
        The other area of infrastructure would fall under housing.
    The need for housing and redevelopment assistance is great in
    my district and in my state and across the nation.
        So with that I would support Community Development Block
    Grants, the Neighborhood Stabilization Fund, that we would do
    above and beyond the $4.84 billion that the President
    requested.
        And then in the last section of transportation and
    infrastructure talking about aid to state and local
    governments, I strongly support President Obama's budget
    request of $266 billion for temporary provisions to speed
    economic recovery. I urge that a larger portion of this funding
    be used to extend the Recovery Act's State Fiscal Stabilization
    Fund.
        The State Fiscal Stabilization Fund has saved about $2.1
    million that otherwise would have been lost. This funding is
    vital, it is an effective program, and it should be increased
    for fiscal year 2011.
        The next area I wanted to mention was Native Americans. I
    find that perhaps nowhere in America are we seeing some of the
    greatest challenges than the unemployment within the Native
    American community. An average unemployment rate of 22 percent,
    huge disparities in healthcare, education, housing, and crime.
        I therefore am pleased that the President's budget requests
    $2.7 billion in total budget authority for fiscal year 2011. I
    am also pleased that it includes a focus for Indian Affairs on
    their core programs and services vital to Indian Country.
        I have spent most of my time now talking about what I
    support in the budget, now I would like to tell you what I
    don't support.
        In terms of Homeland Security, I am the Chair of the
    Homeland Security Emergency Preparedness and Communications,
    and Response Subcommittee. In addition, my district is home to
    many high value terrorist targets, such as the Port of Long
    Beach, I have over six refineries and so on.
        I am deeply troubled by the proposed cut of $77.5 million.
    That is nearly 50 percent in funding for international cargo
    screening. That is a complete slap in the face to the
    objectives and the goals of the 9/11 Act of achieving 100
    percent cargo screening by 2012.
        I am concerned about the steps that have been brought
    forward and I think they should be resoundingly rejected.
        I am also concerned about the proposed cuts of $200 million
    in funding for Staffing for Adequate Fire and Emergency
    Response Program and Assistance to the Firefighter Grant
    Program that will severely limit the ability of local fire
    departments to remain ready and first respond.
        Also you should consider additional funding for Fire
    Station Construction Grant Program. Many of us in our districts
    have old fire stations and they are not gender equal, and those
    are serious things that need to be changed in our fire
    stations.
        Finally, as I close, a budget is a record of our
    expenditures, our outlays, and revenue receipts, but it is more
    than that, it is an expression of our cherished values and a
    contract between generations.
        I thank you for your time.
        [The prepared statement of Laura Richardson follows:]

       Prepared Statement of Hon. Laura Richardson, a Representative in
                     Congress From the State of California

        Chairman Spratt, Ranking Member Ryan, and Members of the House
    Budget Committee: Thank you for convening this hearing and allowing me
    and our colleagues the opportunity to share with the Committee our
    budgetary priorities for Fiscal Year 2011. I ask that my entire
    statement be included in the record of this hearing.
        Coming as we do from all regions of the country and both sides of
    the aisle, the testimony you hear today is a fair reflection of the
    collective hopes and dreams of the American people. This Committee has
    the daunting task of crafting a budget resolution that expresses the
    values and reflects the character of our country.
        I am here to speak for the people I represent, the hard-working and
    hard pressed men, women, children, and businesses of the 37th
    Congressional District of California.
        Mr. Chairman, my state and my district have experienced, and still
    are going through, the toughest economic times in recent memory. The
    unemployment rate in California still hovers around 12 percent but in
    some areas of my district, like Compton, it is closer to 20 percent.
    The foreclosure rate for California (1/185) is more than twice the
    national average (1/405). In the City of Carson, also in my district,
    the foreclosure rate is 4 times the national average (1/96).
        Across the country, in every state and local government, we observe
    a familiar pattern: rising unemployment and job loss leads to increased
    foreclosure rates, which in turn result in decreased revenues for state
    and local governments, who resort to cutting essential social and
    public services to balance their budgets which exacerbates the economic
    hardships on our hard-pressed families.
        It is the budgetary response to these four great challenges--
    creating jobs, stemming foreclosures, aiding state and local
    governments, and strengthening the safety net--that I wish to discuss
    with the Committee today.
                     number #1 priority: jobs for americans
        That is why creating jobs--good paying jobs with benefits to
    sustain families--must be our central objective.
        I applaud the President for including a ``jobs package'' in the
    FY2011 budget and for requesting $100 billion to fund it, but I believe
    that given the scale of the challenge, at least triple that amount
    ($300 billion) is required.
        The current economic downturn has been particularly hard on young
    people, seniors, and small business.
    Older Americans
        When older Americans, those 50 and older, lose their jobs, they
    remain unemployed for much longer periods than younger counterparts.
    Many get discouraged and leave the labor market altogether. If they are
    fortunate enough to secure a replacement full-time job, invariably the
    pay is less, the hours are fewer, and the benefits are minimal or non-
    existent.
        One way to provide targeted and immediate relief for jobless older
    Americans is to fully fund the Senior Community Service Employment
    Program. I applaud the President for providing $825 million for this
    program in FY2010, up from $500 million in FY09. I strongly urge that
    funding for this vital program be maintained at not less than $700
    million for the next five years. And I will soon introduce legislation
    that will make this program more accessible by lowering age and income
    eligibility requirements.
    Jobs for Recent College Graduates
        According to a recent report by the Project on Student Debt, recent
    college graduates carry an average of $23,200 in student loan debt.
    Combined with an unemployment rate of nearly 11 percent, more and more
    young people are returning home to live with their parents instead of
    striking out to make their mark in the world. They need jobs, not an
    allowance from Mom and Dad, who are struggling financially themselves.
        The President's recent proposal to provide a $33 billion proposal
    to encourage small businesses to hire new employees by giving them a
    $5,000-per-new-hire tax credit is a step in the right direction but I
    believe we can and should do more. I will soon be introducing
    legislation to establish a program called ``America RISING,'' which
    stands for:

      ``America Realizing the Informational Skills and Initiative of New
                                  Graduates''

        Under this program funding would be provided to establish and pay
    the salary for two years of a cadre of recent college graduates to be
    deployed to work with small or disadvantaged business enterprises or
    major corporations which have operations located in enterprise zones or
    in areas where the local unemployment rate exceeds the national average
    by more than two percentage points.
        The benefits of such a program are two-fold. First, it provides
    jobs for young persons with marketable skills. Second, it will provide
    a much needed infusion of human capital and technological expertise
    that will enable small businesses to become more competitive.
    Help for Small Business
        As a member who spent 14 years working in the business world before
    coming to Congress, I understand that small business is the backbone of
    our economy. The 26.8 million small businesses in the United States
    represent more than 99.7 percent of all employers, employ just over
    half of all private sector employees, and generated 64 percent of the
    net new jobs created since 1995.
        Clearly, if we are to grow our way out of this economic mess, small
    business is going to help lead the way. I therefore support the
    President's request to permanently eliminate capital gains taxation on
    small businesses (cost: $8.1 billion) and for $17.5 billion in SBA
    Section 7(a) loan guarantees to provide small businesses with access to
    the credit needed to expand and create new jobs.
        As a New Democrat and a former business owner, I am a strong
    proponent of fiscal responsibility and deficit reduction. However, in
    light of the present crisis, I believe that providing expanded access
    to credit for small business is so critical that I support using a
    portion of the remaining TARP funding for this purpose. We have already
    helped companies deemed ``too big to fail.'' Now it is time to provide
    help for small business so that they do not remain ``too small to
    succeed.''
                investment in transportation and infrastructure
        When it comes to creating jobs, there is no more effective means
    than investing in infrastructure. It has been demonstrated time and
    again that for every dollar invested in infrastructure, at least $1.63
    is economic activity is generated.
        Our most recent example of effective investment in infrastructure
    is the Recovery Act, which thus far has created nearly one million jobs
    over the first year of investment while at the same time improving the
    lives of virtually every American who can enjoy the roads, bridges, and
    transit systems that were built or improved through this funding.
        I come from the district that embodies the nation's transportation
    needs, with the largest ports in the country, three airports, major
    freight rail lines, and 40% of the nation's goods moving along our
    rails and four major interstate highways. And as a member of the
    Transportation & Infrastructure Committee I understand how sound
    transportation and infrastructure investments will make our nation
    globally competitive and enhance the quality of life in our
    communities.
        The President's budget requests a 2% increase in infrastructure
    funding. This amount is too paltry to permit us to do anything but
    tread water when we need to be heavily investing in our nation's
    infrastructure and moving forward.
        Congress must act boldly and decisively. We must pass a surface
    transportation reauthorization bill and provide funding for projects
    critical to national greatness. One such project is the Gerald Desmond
    Bridge located in Long Beach, California. The Desmond Bridge may not be
    as famous or glamorous as the Golden Gate or the Verrazano, but it
    carries a larger percentage of the nation's cargo--10 percent--than any
    other bridge.
        That is why it is so shocking and short-sighted that we have not
    rebuilt this 40 year-old bridge, which is now reduced to wearing a
    ``diaper'' to catch the concrete and debris that falls daily from its
    underside. It is imperative that programs such as the Projects of
    National Significance and the Freight Improvement Program receive ample
    funding so essential projects like the rebuilding the Desmond Bridge
    can be completed.
        Our infrastructure needs were also on clear display last week when
    we learned that over $60 billion of projects applied for $1.5 billion
    of TIGER grant funding. Put another way: for every dollar provided, $40
    of need went unmet, including every project in my district, one of the
    most infrastructure-intensive in the nation.
        When it comes to transportation funding, we must be forward-
    thinking and pro-active to position our country to compete and win in
    the global economy. Nowhere is this more important than in the area of
    high-speed rail. As the founding co-chair of the California High-Speed
    Rail Caucus, I applaud the President for requesting $1 billion for rail
    in the budget since this is more than is typically provided. I also
    appreciate very much the $2.25 billion grant for high-speed rail
    development California received under the Recovery Act.
        But a larger commitment is needed. It will cost about $40 billion
    to bring high-speed rail to California. But with it will come a
    revolution in travel and a model for the rest of the country. The
    benefits include a cleaner and quieter environment, reduced traffic
    congestion, and 450,000 new jobs in California to build the line. High-
    speed rail is the wave of the future and we must make a real commitment
    to it to remain competitive. After all, China is spending an estimated
    $100 billion annually to construct its national high-speed rail
    network. This nation simply cannot afford to fall behind its leading
    economic competitor in the 21st century.
                                    housing
        The needed for housing and redevelopment assistance is great in my
    district, my state, and across the nation. California trails only
    Nevada in the rate of housing foreclosures, and is projected to lose
    1.9 million homes to foreclosure projections between 2009 and 2012.
    Therefore, it is imperative that we substantially increase funding for
    foreclosure relief programs such as the Community Development Block
    Grants (CDBG) and the Neighborhood Stabilization Fund (NSF) above the
    $4.84 billion requested in the President's budget.
        I do not support the President's decision to request a reduction in
    funding for the Section 202 Housing for the Elderly program and the
    Section 811 Housing for Persons with Disabilities Program, which funds
    the new construction of housing for those groups. Our seniors and the
    disabled are among the most vulnerable populations in society and we
    cannot neglect their housing needs.
                       aid to state and local governments
        I strongly support President Obama's budget request of $266 billion
    for temporary provisions to speed economic recovery and urge that a
    larger portion of this funding be used to extend the Recovery Act's
    State Fiscal Stabilization Fund. This fund helps states maintain
    education and other services such as public safety and law enforcement
    during the recession.
        With tax revenue still declining as a result of the recession and
    budget reserves largely drained, the vast majority of states have made
    spending cuts that hurt families and reduce necessary services. These
    cuts, in turn, have deepened states' economic problems because families
    and businesses have less to spend.
        At least 45 states and the District of Columbia have enacted severe
    cuts in all major areas of state services, including health care (29
    states), services to the elderly and disabled (24 states and the
    District of Columbia), K-12 education (29 states and the District of
    Columbia), and higher education (39 states).
        In California, for example, the Governor has proposed the following
    cuts in services:
         additional deep reductions to Medi-Cal (Medicaid)
    services, including increased co-payments and reduced eligibility for
    immigrants;
         a $1.5 billion reduction in K-12 and community college
    funding in 2010-11;
         a 5 percent to 10 percent cut to state employee salaries;
         a reduction in Supplemental Security Income/State
    Supplementary Program (SSI/SSP) grants by $15 per month;
         the elimination of the state's CalWorks (TANF) program and
    a number of other human service programs; and
         the elimination of funding to respond to enrollment growth
    in the state's public universities.
        State Fiscal Stabilization Fund dollars provided by the Recovery
    Act Federal help to reduce the extent, severity, and economic impact of
    these cuts. And they have saved about 2.1 million jobs that otherwise
    would have been lost. Funding for this vital and proven effective
    program should be increased for FY2011 because the budget pressures
    facing state and local governments have not abated and, in fact, are
    increasing.
                               homeland security
        I am the Chair of the Homeland Security Emergency Preparations,
    Communications, and Response Subcommittee. In addition, my district is
    home to many high-value terrorist targets, such as the Port of Long
    Beach. I am therefore, deeply troubled by the proposed cut of $77.5
    million (nearly 50 percent!) in funding for international cargo
    screening. This decrease reflects an emphasis on remote screening of
    freight instead of physical inspection. The 9/11 Act established the
    goal of 100 percent cargo screening by 2010; the proposed budget cut
    will not bring a closer to achieving this national objective.
        I am also concerned about the proposed cut of $200 million in
    funding for the Staffing for Adequate Fire and Emergency Response
    (SAFER) Program and the Assistance to Firefighter Grant (AFG) Program.
    I oppose these reductions because they will severely limit the ability
    of local fire departments to meet community needs and maintain the
    readiness of local first responders during all types of emergencies.
        I also strongly believe that we should substantially increase
    funding for the Fire Station Construction Grant Program so cities like
    Compton in my district can have the resources needed to protect the
    local citizenry and to assist in the protection of a vital national
    asset like the Alameda Corridor which splits the city down the middle
    while it transports the nation's cargo to and from the Ports of Long
    Beach and Los Angeles.
        Finally, I would also like to stress the importance of full funding
    for the State and Regional Preparedness Program, which provides grants
    to fund programs such as the Citizens Corp and Interoperable Emergency
    Communications Grants. A recent GAO report stated that only about half
    of American households had disaster supplies in their home and a
    household emergency plan. Clearly there is more that must be done to
    get our people in an optimal state of readiness. Thus, I cannot support
    the proposed request to decrease preparedness funding by 13.33% or
    $313.7 million.
                                native americans
        Perhaps nowhere is the need more urgent need than in Indian
    Country, which is grappling with an average unemployment rate of 22
    percent, which is higher than any state. Addressing the disparities in
    health care, education, housing, and crime in Indian Country also
    remains a challenge. I therefore am pleased that the President's budget
    requests $2.7 billion in total budget authority for FY2011. I am also
    pleased that the FY2011 request for Indian Affairs focuses on core
    programs and services that are vital to Indian country such as the $19
    million to reduce crime and an additional $29.9 million is included to
    strengthen Indian Affairs' commitment to tribal self-determination
    under the Advancing Nation to Nation Relationships initiative.
                                   education
        Nothing is more crucial to our nation's long-term future than an
    educated citizenry. That is why I am pleased that the president's
    budget increases discretionary funding for the Department of Education
    (ED) by $3 billion, $49.6 billion up from $46-7 billion in FY2011.
        My education priorities are as follows:
         Title I. Increase by $2.5 billion to ensure that
    disadvantaged students can receive all the services necessary to
    succeed.
         Improving Teacher Quality State Grants. Increase by $230
    million to be used to for a variety of purposes, including reducing
    class size.
         21st Century Community Learning Centers (Afterschool).
    Increase by $220 million, from $1.13 billion to $1.35 billion to serve
    one million more children, as outlined in the President's education
    plan.
         Career and Technical Education State Grants. In increase
    by $280 million, from $1.16 billion to $1.44 billion.
         Enhancing Education Through Technology (EETT)--Maintain
    FY2009 funding level of $700 million to modernize the classroom and
    instruction, and to bring innovation to our education system.
         IDEA Special Education. In increase by $2.9 billion to
    keep the program on track toward full funding.
                             international affairs
        Finally, I wish to briefly address the Function 150--International
    Affairs budget and say that I strongly support the President's request
    for $58.5 billion, an increase of $6.1 billion or 11.6% over total FY10
    spending.
        Although America's domestic needs are great, it is in our interest
    and consistent with our tradition and character to be engaged in the
    world. Whether it is providing diplomatic, development, peacekeeping,
    security, and humanitarian assistance, or combating human trafficking
    and modern day slavery, American leadership and involvement is
    indispensable.
        The $58 billion requested for the International Affairs budget is
    to be sure a lot of money. But to put it in perspective:
         The entire International Affairs Budget is just 1.4% of
    the total FY 2011 Budget.
         The International Affairs Budget represents only 6.7% of
    the budget for security agencies, which includes defense, intelligence,
    homeland security, and veterans appropriations.
         Even at this level of funding, the International Affairs
    Budget represents only 0.36% of GDP.
        I recently returned from the Winter Meeting of the Inter-
    Parliamentary Union in Vienna, which I attended as part of the Helsinki
    Commission Congressional Delegation chaired by Congressman Hastings and
    Senator Cardin of Maryland. While there the members of the delegation
    met with our European counterparts to discuss many of the most pressing
    global issues of the day, including piracy in the Gulf of Aden and
    modern day slavery. We were all impressed by the importance our
    counterparts placed on the importance of American engagement to the
    success international engagement and collective action, and its
    capacity to promote and foster democratic values, sustainable
    development, and human rights.
        The amount we spend on the International Affairs budget to maintain
    that leadership, less than 2 cents on the dollar, is a bargain and one
    of the best investments we can make.
                                   conclusion
        In conclusion, let me say that while a budget is a record of
    expenditures, outlays, and revenue receipts, it is much more than that.
    It is an expression of our most cherished values, a reflection our
    character, and the fulfillment of the social contract among
    generations, tying the present to the past and future. In a budget we
    commit ourselves to the actions needed to keep faith with our
    obligation to our forefathers and to generations unborn to do all we
    can to make this a more perfect union. It is in that spirit that I have
    suggested the priorities outlined above.
        Thank you for listening.

        Ms. Kaptur. Thank you very much Congresswoman Richardson. I
    know it took extra effort to prepare such an excellent
    submission, and we thank you very much for coming over to the
    committee today and entering all these proposals as part of the
    official documents that we will use as we move toward a budget
    for 2011. Thank you so very much.
        We would now like to welcome Congressman Gary Peters from
    the State of Michigan, from the Livonia area if I remember
    correctly? Am I getting close?
        Mr. Peters. You are getting close. Oakland County. Oakland
    County, Michigan.
        Ms. Kaptur. Oakland County. Sorry, there we go. All right,
    Oakland County. Welcome very much Congressman Peters, you can
    proceed.

      STATEMENT OF HON. GARY PETERS, A REPRESENTATIVE IN CONGRESS
                       FROM THE STATE OF MICHIGAN

        Mr. Peters. Well thank you, Madam Kaptur, and I would like
    to thank Chairman Spratt and Ranking Member Ryan and other
    members of the Budget Committee for an opportunity to testify
    here today.
        While I believe that the Recovery Act and other measures
    were necessary to prevent the economic downturn of 2008 from
    escalating into another Great Depression, we must now confront
    a growing problem that could prevent us from being able to
    respond to a future crisis, economic or otherwise, and that is
    our budget deficit and growing national debt.
        I believe that fiscal restraint should not be a partisan
    issue, and that we must work together to find every opportunity
    to slash spending and forge a path towards a balanced budget
    and a shrinking national debt.
        While the need to control spending and reign in budget
    deficits is undeniably urgent, the reality remains that far too
    many of our friends, family, and neighbors are still looking
    for work. Any new investments should focus squarely on job
    creation, and be paid for through cuts to outdated or wasteful
    programs.
        Investments that particularly target our manufacturing
    sector will be especially critical, as a healthy manufacturing
    base is necessary to ensuring the security and prosperity of
    the American middle class and vital to our overall economic
    recovery.
        I was pleased to see the President is proposing a $5
    million increase for the Manufacturing Extension Partnership.
    The Manufacturing Extension Partnership is a national program
    credited with creating and retaining over 55,000 jobs per year
    in the manufacturing industry, delivering $1.44 billion in cost
    savings annually, and a $10.5 billion increased or retained
    sales in one year.
        Additionally, I am heartened to see the Administration's
    focus on boosting exports to help fuel economic growth of
    manufacturers and our economy as a whole. The 20 percent
    increase in the budget for the Commerce Department's
    International Trade Administration will help promote exports
    from small businesses, eliminate barriers to sales of U.S.
    products, and improve the competitiveness of U.S. firms.
        The budget also makes important investments in the Export-
    Import Bank to expand U.S. small businesses use of the Bank's
    financial export assistance.
        I am also pleased the Administration has provided for an
    increase in advanced vehicle technologies. The President
    requested 325 million for the Advanced Vehicle Technologies
    Program. It represents a $13 million increase over fiscal year
    2010 funding.
        The State of Michigan, the domestic auto manufacturers, and
    many other companies in the state and across the country are
    investing heavily in new technologies that will help renew our
    manufacturing sector and auto industry, and I am pleased that
    the determination is beginning to be matched at the federal
    level to achieve the technological change being demanded.
        As our economy continues to recover we must ensure all
    Americans will have the opportunity to pursue newly created
    jobs. And I believe the high price of child care is a
    significant roadblock to employment. This is why I have
    introduced legislation last year that would increase the
    Dependent Care Tax Credit, thereby making child care more
    affordable for millions of American families.
        I am encouraged that the President has proposed expanding
    the Dependant Care Tax Credit, which would increase tax relief
    for child care from $1,200 to $2,100 for middle-class families.
        However, while I believe smart investments in targeted
    areas can be part of a responsible budget strategy, we need to
    go beyond the reductions in the President's budget and make
    larger cuts in certain areas.
        For example, the President's budget includes increases in
    the Weatherization and Intergovernmental Activities Program.
    The Weatherization Assistance Program was funded in the
    Recovery Act, but progress has been unexpectedly slow due to
    delays in establishing prevailing wage rates for cities to
    perform the work. Michigan had only completed weatherization of
    1.15 percent of its planned units as of the program's one year
    anniversary. Given this fact, I question if an additional $90
    million is really needed to support administrative costs at the
    federal Weatherization office.
        There is also over $7 billion in funding in the Recovery
    Act for deployment of broadband technology through the
    Department of Agriculture's Rural Utilities Service and the
    Department of Commerce's National Telecommunications
    Information Administration. While these agencies will be
    distributing millions in broadband funding in the coming year,
    the fiscal year 2011 budget adds $418 million for new loans and
    grants for rural communities. Before spending almost half of a
    billion in new broadband funding, I believe that we should
    complete distribution of funding under the Recovery Act and
    then determine if these programs were successful.
        While deployment of broadband to all Americans is
    important, we should not be spending taxpayer dollars
    installing 1990's technology in rural areas that barely
    qualifies as broadband.
        Finally, I believe the Department of Agriculture's budget
    presents opportunities to make cuts and save taxpayers money.
    There is little need to fund both the Market Access Program and
    the Foreign Market Cooperator Program independently. Additional
    funding from the Administration's Export Promotion Initiative
    further enhances the expediency of cutting a redundant program
    and streamlining our government's efforts in growing our export
    markets.
        The elimination of commodity storage payments and for
    peanuts and cotton is another example of cutting outdated
    special interests. Though they once may have been necessary,
    eliminating this program ends another niche government expense
    that has outlived its need.
        We must continue to look for opportunities to cut spending
    and use these savings to invest in targeted job creation.
        Thank you, Madam Chair for this opportunity.
        [The prepared statement of Gary Peters follows:]

    Prepared Statement of Hon. Gary C. Peters, a Representative in Congress
                           From the State of Michigan

        Mr. Chairman, Thank you for the opportunity to testify today. While
    I believe the Recovery Act and other measures were necessary to prevent
    the economic downturn of 2008 from escalating to another Great
    Depression, we must now confront a growing problem that could prevent
    us from being able to respond to a future crisis, economic or
    otherwise, and that is our budget deficit and growing national debt. I
    believe that fiscal restraint should not be a partisan issue, and that
    we must work together to find every opportunity to slash spending and
    forge a path toward a balanced budget and a shrinking national debt.
        While the need to control spending and reign in budget deficits is
    undeniably urgent, the reality remains that far too many of our
    friends, family, and neighbors are still looking for work. Any new
    investments should focus squarely on job creation, and be paid for
    through cuts to outdated or wasteful programs. Investments that
    particularly target our manufacturing sector will be especially
    critical, as a healthy manufacturing base is necessary to ensuring the
    security and prosperity of the American middle class and vital to our
    overall economic recovery.
        I was pleased to see the President is proposing a $5 million
    increase for the Manufacturing Extension Partnership. The Manufacturing
    Extension Partnership is a national program credited with creating and
    retaining over 55,000 jobs per year in the manufacturing industry,
    delivering $1.44 billion in cost savings annually, and $10.5 billion in
    increased or retained sales in one year.
        Additionally, I am heartened to see the Administration's focus on
    boosting exports to help fuel economic growth of manufacturers and our
    economy as a whole. The 20% increase in the budget for the Commerce
    Department's International Trade Administration will help promote
    exports from small businesses, eliminate barriers to sales of U.S.
    products, and improve the competitiveness of U.S. firms. The budget
    also makes important investments in the Export-Import Bank to expand
    U.S. small business use of the Bank's financial export assistance.
        I am also pleased the administration has provided for an increase
    in advanced vehicle technologies. The President requested $325M for the
    Advanced Vehicle Technologies Program--a $13M increase over FY10
    funding. The State of Michigan, the domestic auto manufacturers, and
    many other companies in the state and across the country are investing
    heavily in new technologies that will help renew our manufacturing
    sector and auto industry, and I am pleased that determination is
    beginning to be matched at the federal level to achieve the
    technological change being demanded.
        As our economy continues to recover, we must ensure all Americans
    will have the opportunity to pursue newly created jobs. I believe that
    the high price of child care is a significant roadblock to employment.
    This is why I introduced legislation last year that would increase the
    Dependent Care Tax Credit, thereby making child care more affordable
    for millions of American families. I am encouraged that the President
    has proposed expanding the Dependant Care Tax Credit, which would
    increase tax relief for child care from $1,200 to $2,100 for middle-
    class families.
        However, while I believe smart investments in targeted areas can be
    part of a responsible budget strategy, we need to go beyond the
    reductions in the President's budget and make larger cuts in certain
    areas.
        For example, the President's budget includes increases in the
    weatherization and intergovernmental activities program. The
    Weatherization Assistance Program was funded in the Recovery Act, but
    progress has been unexpectedly slow due to delays in establishing
    prevailing wage rates for cities to perform the work. Michigan had only
    completed weatherization of 1.15% of its planned units as of the
    program's one year anniversary. Given this fact, I question if an
    additional $90 million is really needed to support administrative costs
    at the federal Weatherization office.
        There was also over $7 billion in funding in the Recovery Act for
    deployment of broadband technology through the Department of
    Agriculture's Rural Utilities Service (RUS) and the Department of
    Commerce's National Telecommunications Information Administration
    (NTIA). While these agencies will be distributing billions in broadband
    funding in the coming year, the FY 2011 budget adds $418 million for
    new loans and grants for rural communities. Before spending almost half
    of a billion in new broadband funding, I believe that we should
    complete distribution of funding under the Recovery Act and determine
    if these programs were successful. While deployment of broadband to all
    Americans is important, we should not be spending taxpayer dollars
    installing 1990's technology in rural areas that barely qualifies as
    broadband.
        Finally, I believe the Department of Agriculture's budget presents
    opportunities to make cuts and save taxpayers money. There is little
    need to fund both the Market Access Program and the Foreign Market
    Cooperator Program independently. Additional funding from the
    Administration's Export Promotion Initiative further enhances the
    expediency of cutting a redundant program and streamlining our
    government's efforts in growing our export markets.
        The elimination of Commodity Storage Payments for peanuts and
    cotton is another example of cutting outdated special interests. Though
    they once may have been necessary, eliminating this program ends
    another niche government expense that has outlived its need.
        We must continue to look for opportunities to cut spending and use
    these savings to invest in targeted job creation. Thank you, Mr.
    Chairman.

        Ms. Kaptur. Congressman Peters, I want to thank you for
    your excellent testimony and for coming here today to give a
    very balanced statement. I know you are a new member, and for a
    new member to find the Budget Committee and to provide such
    comprehensive testimony is truly admirable and a sign of the
    good work that you are doing for your district in the State of
    Michigan as its representative here in Washington.
        We will place your entire statement in the record, and we
    will take care to note its recommendations as we move forward
    with the new budget, and we thank you so very much for being a
    part of the testimony today.
        Mr. Peters. Thank you, Madam Chair.
        Ms. Kaptur. Thank you for taking the time and making such
    as excellent effort.
        I would like to know say that the committee is now
    adjourned. We thank everyone for participating.
        [The prepared statement of Hon. Russ Carnahan, a
    Representative in Congress from the State of Missouri,
    follows:]

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        [The prepared statement of John Lewis follows:]

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        [The prepared statement of Melissa L. Bean follows:]

        Prepared Statement of Hon. Melissa L. Bean, a Representative in
                      Congress From the State of Illinois

        Chairman Spratt and Ranking Member Ryan, thank you for the
    opportunity to submit testimony today on the Fiscal Year 2011 Budget
    Resolution. As a non-committee member, I particularly appreciate this
    open forum for new ideas and the ability to weigh in on this critical
    framework for our national spending priorities.
        Today, our nation is faced with economic challenges not seen in
    decades. Our recent efforts to combat this recession include both short
    and long-term investments that support sustainable growth. As a result
    the deficit for last fiscal year represented 10.6 percent of our
    nation's GDP; this year's projected deficit is 8.3 percent; and
    deficits continue to be expected for many years to come. In the short
    term, we know our budget deficit stems from a significant decrease in
    revenues combined with Recovery Act tax cuts and investments all
    related to the recession. However, according to projections, outlays
    will continue to outpace revenues over the mid-term and long-term, even
    after the economy has recovered.
        This path is unsustainable, and this Congress must begin making the
    difficult decisions required to put our fiscal state back on track. In
    this light, I would like to express my support for the President's
    three year freeze on non-security discretionary spending, as well as
    the $23 billion in savings he has identified through terminations,
    reductions, and savings. Since coming to Congress, I have routinely
    supported across-the-board cuts to non-security discretionary spending
    as a first step toward bringing our fiscal house in order. However,
    focusing on this small sector of the budget isn't enough; significantly
    more cuts are needed. Our budgetary situation is so challenging that
    even if we cut all discretionary spending--meaning we disband the
    military; stop all infrastructure projects; stop testing drugs, food
    and toys for safety; ground all airplanes; stop patrolling the border;
    end support for higher education in the form of direct loans or special
    needs assistance; and allow dire consequences to occur--even if we did
    that, our nation would still be facing a deficit!
        If we are to truly address this fiscal crisis, we must reform our
    entitlement programs which is why I am a strong supporter, and original
    cosponsor, of H.R. 1557, The SAFE Commission Act, championed by
    Representative Jim Cooper. This bipartisan commission would be
    responsible for taking an honest look at our entitlement programs and
    developing concrete legislative proposals for fixing a broken system.
    The bill would then require Congress to vote up or down on the
    recommendations. Until Congress is ready to tackle these greatly needed
    reforms, and takes such difficult votes instead of running from them,
    we cannot expect to restore our nation's deteriorating fiscal
    credibility.
        Again, I appreciate the opportunity to voice my concerns about the
    important work before us. There is much work to be done. I look forward
    to working with my colleagues on both sides of the aisle to address the
    budget challenges we face as a nation. Americans are counting on us to
    fulfill our responsibility in this regard. Thank you.

        [The prepared statement of Vernon J. Ehlers follows:]

       Prepared Statement of Hon. Vernon J. Ehlers, a Representative in
                      Congress From the State of Michigan

        Thank you, Mr. Chairman, for the opportunity to testify as the
    Committee considers a fiscal year 2011 Budget Resolution.
        As you begin the budget process, I strongly urge you to give high
    priority to scientific research and development and math and science
    education in the General Space, Science and Technology function (250)
    of the budget. I will focus my comments on two areas covered under this
    function: the National Science Foundation and the Department of
    Energy's science programs. I will also address the science and
    technology portion of the Commerce account within function (370).
        I am pleased that the President's fiscal year 2011 budget request
    provides substantial funding levels for the National Science Foundation
    (NSF), the Department of Commerce's National Institute of Standards and
    Technology (NIST), and the Department of Energy's Office of Science.
        Starting in 2006, the Congress and Administration jointly committed
    themselves to ``doubling the basic science research budget.'' Though
    the fiscal year requests have included the establishment of a doubling
    track for the NSF, NIST's laboratories and research, and the Department
    of Energy's Office of Science, Congress has been unable to set the
    final doubling numbers into law. This year, I ask that the President's
    request for science be granted, starting with the preparation of the
    House budget allocations for Function 250 and Function 370.
                                   background
        On a bipartisan basis, Congress has recognized that innovation is
    critical to our national competitiveness and that scientific research
    and development is the key to increased innovation, economic vitality
    and national security. I am very appreciative that this committee has
    been historically supportive of this goal.
        Since the passage of the America COMPETES Act, Congress has
    struggled to fully fund the authorized funding levels for the COMPETES
    agencies. We must commit to steady and sustained growth in research
    budgets and work within the annual budget and appropriations process to
    maintain a consistent and predictably strong funding pathway for these
    agencies.
        To elucidate the importance of science and technology funding, I
    would like to talk about our economic competitiveness, and articulate
    how the DOE Office of Science, NSF, and NIST are addressing this issue.
                    department of energy's office of science
        Our country faces a number of challenges related to energy supply,
    development, and sustainability. The Department of Energy's Office of
    Science funds 40 percent of all federal basic research investments in
    the physical sciences as well as 14 percent of investments in
    mathematics and computing, environmental sciences, and engineering.
    Research in these areas has led to many new economic and medical
    advancements including, among others, new energy sources, the Internet,
    cell phones and laser surgery. To overcome our substantial energy
    challenges, the federal government must continue to support research in
    alternative energy sources, nanotechnology and supercomputing.
        The Office of Science is not only important to the future of U.S.
    science, but also to our competitiveness and energy security. I
    respectfully request that the Committee provide the Office of Science
    with a budget that reflects the critical role that it plays in
    maintaining our economic and military pre-eminence.
                          national science foundation
        The National Science Foundation (NSF) is the only federal agency
    dedicated solely to supporting basic scientific research and education.
    NSF funding accounts for one-fifth of all federal support for basic
    research and 40 percent of physical science research at academic
    institutions. Nearly 90 percent of these awards are made through a
    competitive, merit-review process that ensures that excellent and
    innovative research is being supported. Furthermore, NSF consistently
    receives the highest rating from OMB for the efficiency and excellence
    of its programs.
        The Administration's FY 2011 budget request for NSF of $7.4 billion
    is a 7.5 percent increase over FY 2010 appropriations. Providing a
    budget that allows for the President's requested level of NSF funding
    is extremely necessary for FY 2011 and I ask you to enhance the
    function 250 allocation accordingly.
                 national institute of standards and technology
        The National Institute of Standards and Technology (NIST) is the
    nation's oldest federal laboratory, and the only laboratory with the
    explicitly-stated mission to promote U.S. innovation and industrial
    competitiveness. NIST provides high-quality, cutting-edge research in a
    number of scientific and technical fields, and it plays a critical role
    in keeping our nation competitive. Since 1997, NIST researchers have
    been awarded three Nobel Prizes, demonstrating the high-quality work
    this agency is supporting.
        Perhaps no other group has been impacted as greatly by the current
    economic recession than the small and medium-sized manufacturers in our
    nation. The Hollings Manufacturing Extension Partnership (MEP) program
    helps small and medium-sized manufacturers stay competitive by helping
    them become more innovative, and the Technology Innovation Program
    (TIP) is NIST's only external research grant program, funding high-
    risk, high-return technology research and development focused on
    national priorities. Both of these programs run on an efficient cost-
    shared basis with industry. Without a doubt, these two programs provide
    invaluable assistance to the sectors of our economy that are currently
    fighting to stay competitive in the global economy.
        The President's FY2011 budget includes $130 million for the
    Hollings Manufacturing Extension Partnership Program and $80 million
    for the Technology Innovation Program. Given our current economic
    situation, I am concerned that many states and other partners in these
    programs will struggle to match the federal funds required to
    participate in the MEP program, and therefore I ask that the committee
    work to improve the allocation for the science and technology portion
    of function 370 accordingly. Both the MEP and TIP have historically had
    strong, bipartisan Congressional support, and I respectfully ask that
    this support be reflected in the Budget Committee's recommendations.
                                   conclusion
        Thank you in advance for your efforts to undertake this important
    job. I believe that you can send a strong signal about the importance
    of fundamental science and education to the Appropriations Committee by
    making function 250 and the science and technology portion of function
    370 top priorities in the FY 2011 budget.
        Thank you again for allowing me to testify.

        [The prepared statement of Marcia L. Fudge follows:]

        Prepared Statement of Hon. Marcia L. Fudge, a Representative in
                        Congress From the State of Ohio

        Thank you, Chairman Spratt and Ranking Member Ryan, for allowing me
    to address the urgent funding needs of the Eleventh Congressional
    District of Ohio.
                              workforce investment
        Cuyahoga County in Northeast Ohio has been hit hard by the current
    Great Recession. While the Department of Labor lists our unemployment
    rate at 9 percent, it doesn't include the chronically unemployed. When
    you take into account this group of constituents, my county actually
    faces 18-20 percent unemployment which is devastating. I strongly
    support increased funding for programs under the Workforce Investment
    Act that will not only assist dislocated workers but are designed to
    serve the chronically unemployed, the hard-to-serve, and individuals
    with multiple barriers to successful employment. These barriers
    included such things as felony convictions, job dislocation, chronic
    unemployment and lack of soft skills and other inhibitors to job
    success. I applaud the President's budget request of additional career
    development and job training funding, but we need more workforce
    dollars applied to programs that have models of serving the chronically
    unemployed. Specifically, we need more dollars for programs like the
    Pathways to Green Jobs initiative that serves the chronically
    unemployed in my District. This 350 hour curriculum includes remedial
    math and English, technical skills and soft-skills to help the
    chronically unemployed have a real path to employment. I submit to this
    Committee that we can and must provide targeted investments for
    chronically unemployed. Otherwise, we give up on America's economic
    advancement.
                                    housing
        Congress must also continue its fight against foreclosures which
    devastate our communities. I applaud the President's announcement of
    the $1.5 billion ``innovation fund'' that supports ``states hardest hit
    by this housing crisis'' in creating tailored foreclosure mitigation
    plans. But I ask: Why was Ohio excluded from the list of recipients?
        Long before the federal government recognized the foreclosure
    crisis, Ohio grappled with escalating foreclosure rates resulting in
    displaced families, blighted communities, and low property values. Long
    before foreclosures became ``hot news'' in the media, Ohio wrestled
    with predatory lending and lax regulatory oversight. And while our
    fight against foreclosure continues, we have been ravaged by this
    epidemic. We were excluded from this program because recipients were
    not selected by foreclosure intensity rather more recent trends in
    foreclosure numbers. Selection was contingent upon more recent
    declining home values over 20 percent which really does not help a
    long-suffering state like Ohio. which has been long-suffering. Because
    of the selection criteria, states like Ohio have once again been
    penalized.
        I urge the Administration to reassess program criteria to include
    Ohio and other similarly excluded states. I challenge this committee to
    ensure that foreclosure related funding is included in the budget and
    truly helps all of the hardest hit states.
                         small business administration
        I fully support President Obama's budget request for $28 billion in
    loan guarantees for small business to create jobs. We all know that
    small businesses spur local and regional economic development. With
    this assistance, small businesses can continue to operate and expand.
        I strongly support the President's $25 million microloan fund which
    provides smaller loans to entrepreneurs excluded from traditional
    business loans. The maximum microloan amount will be increased to
    $50,000. These funds will help businesses make investments in
    information technology and employees.
        Another initiative that will enhance small business participation
    in regional economic development. This includes technical assistance to
    companies with growth potential which are located in distressed inner
    city areas. Connecting these companies to other regional businesses
    will help facilitate growth and revitalize our communities.
                               childhood obesity
        The budget request has a wonderful and appropriate focus on
    childhood nutrition. As is the case with many of my colleagues who
    represent urban areas, I am concerned about the disproportionate impact
    of childhood obesity in low-income communities.
        U.S. health care costs, due to obesity, are $150 billion a year.
    Half of this amount is paid through Medicaid and Medicare. With nearly
    $1 of every $6 of our economy spent on health care, we cannot afford to
    sell junk food or unhealthy meals in schools. Meals must meet national
    nutrition guidelines. Many children in my District depend on food
    served in schools. I am not willing to gamble with their health by
    serving unhealthy foods. Removing these foods from our schools is a
    low-cost way to address the high-cost of obesity.
        Money should be used for childhood nutrition and programs that make
    healthy food accessible for children who live in food deserts. Food
    deserts are places where few supermarkets exist that sell fresh fruits
    and vegetables and small corner stores selling unhealthy foods and
    heavily advertise alcoholic beverages are plentiful. Programs that get
    kids moving and encourage a healthy lifestyle are extremely important.
    The National Youth Sports Program is an example a program that promotes
    healthy living for children. We need to support such programs.
                   community development block grants (cdbg)
        As the former mayor of Warrensville Heights, Ohio and on behalf of
    local leaders in general, I want to focus on the administration's full
    funding of Community Development Block Grants. The fiscal year 2011
    budget provides $3.9 billion to fund this program. As legislators, our
    number one priority is economic development. To accomplish this, we
    must support programs that help improve and grow our economy.
    Historically, for every $1 of funding through CDBG, nearly $3 is
    leveraged for economic development projects. When a city needs a
    grocery store or more affordable housing, this block grant funding
    meets those needs. This is one of the few programs directly funding the
    locality. It does not get tied up in state government or federal
    affairs. The money immediately goes to the areas where local leaders
    can help expand economic opportunities for their citizens. For that
    reason, we need more funding for CDBG.
        In Cleveland, Community Development Block Grant dollars have gone
    to assist our Housing Trust Fund. Every dollar leverages five dollars
    of private investment. In 2008, Housing Trust Fund dollars were
    committed to projects that supported nearly 700 energy efficient
    housing units.
        Community Development Block Grants will also support Housing
    Services for low to moderate income families. These funds are a
    critical source of assistance for seniors and low income families
    needing home repairs. This year, over $2.2 million is expected to be
    used for home repair assistance from CDBG funds.
        This grant will also help community based organizations.
    Approximately $8 million supports a network of organizations providing
    housing services, neighborhood safety programs, and community outreach.
        Chairman Spratt and Mr. Ryan, thank you again for this opportunity.
    I trust you will keep Ohioans of the Eleventh Congressional District
    and all Americans in mind as you carefully craft our Nation's fiscal
    year 2011 budget.

        [The prepared statement of Phil Hare follows:]

    Prepared Statement of Hon. Phil Hare, a Representative in Congress From
                             the State of Illinois

        Chairman Spratt, Ranking Member Ryan, and Members of the House
    Committee on the Budget, thank you for allowing me this opportunity. I
    appreciate being able to express some of the concerns and priorities of
    my constituents in West Central Illinois.
        As a member of the House Transportation and Infrastructure
    Committee I have chosen to limit my remarks today to the topics that
    fall under that purview. I appeared before this committee in March of
    2009 and stressed the need for a budget resolution that reflected a
    ``jobs'' focus, most notably one with a strong infrastructure
    influence. I again echo this sentiment and believe that infrastructure
    investment is by far one of the best job creators and economic growth
    engines. The American Reinvestment and Recovery Act (ARRA) of 2009 was
    a landmark investment in repairing our economy that was largely
    forgotten by the last Administration. But now, however, the Budget
    Committee has a genuine opportunity to craft a budget which reflects
    the number one priority of the 111th Congress, the President, and the
    American people: jobs. I firmly believe that investing heavily in
    infrastructure is the most effective way to put Americans back to work
    and protect families in every corner of this nation.
        As we all know, the President's budget is merely a blueprint for
    Congress; simply a list of priorities by the Administration for the
    fiscal year to come. While I applaud the President's bold leadership
    over the course of the first year of his term, I question the federal
    funding proposed for highway projects. One critical aspect, which
    immediately caught my eye is that the President's budget zeroes out
    Surface Transportation Priority Projects. In almost all of our
    congressional districts we are faced with crumbling infrastructure, all
    of which affects commuters, pedestrians, businesses; almost every
    aspect of our economy. In my district--where the intersection of heavy
    trucking, passenger rail, and interstate commerce meets the Midwest's
    extreme weather patterns every season--the infrastructure is in need of
    dire attention. The job opportunities to make our roads safer for all
    Americans using transportation all begin at the first phase of becoming
    a reality: the federal budget. The economy has shown signs of life as
    far as recovering from major damage, but I think we can all agree that
    the economy is far from stabilized. We must tackle the jobs issue head-
    on by providing budget funding for the thousands of shovel-ready
    projects currently authorized by Congress. Without a robust
    transportation projects budget for the upcoming year, many of my
    constituents will not have an adequate family budget. In the Department
    of Transportation's Fiscal Year 2011 Budget Summary, Transportation
    Secretary Ray LaHood states, ``We will invest in our Nation's
    infrastructure--creating jobs in support of the economy while
    delivering projects that can best leverage our federal investment.'' I
    could not agree with this statement more. Now is the time to put our
    money where our mouth is and put the unemployed back on the job site.
        The President's budget blueprint proposes $1 billion to continue
    our nation's pursuit of high-speed rail service. While the Recovery Act
    provided a major boost to our infrastructure-building sector, the
    President's budget is not consistent with the Administration's own
    ``Vision for High-Speed Rail in America'' plan. I understand that we
    are all tightening our belts and using fiscal restraint for unwarranted
    spending wherever possible, but the benefits of investing in rail
    improvements and expansion are worth the taxpayers' dollars in the long
    run. High-speed rail creates good-paying jobs, creates less greenhouse
    gas emissions compared to individual vehicles on the road, bypasses
    traffic jams, increases travel and tourism possibilities, and creates
    economic development opportunities at every stop on the route. In my
    district, there is a large demand for both passenger rail and high-
    speed rail by constituents, state and local officials, and businesses.
        Another critical issue for my constituents is adequate funding for
    flood control and water resource management projects along the
    Mississippi River. Billions of dollars in commercial goods are
    transported along the Mississippi River and our failure to adequately
    invest in our waterway infrastructure has been harmful to the economic
    prosperity of my district. The entire western border of my district
    rests on the Mississippi River, and the existing infrastructure
    operated by the Army Corps of Engineers is literally crumbling. A
    robust increase in spending for the Corps' many projects is badly
    needed. As you know, the Water Resources Development Act, WRDA, was
    last enacted in the 110th Congress and contained thousands of the
    Corps' projects. From dredging to levee repairs to lock and dam
    improvements to flood control, I humbly ask that the Fiscal Year 2011
    Budget Resolution adequately fund the waterways projects currently
    authorized by Congress. The residents of Keithsburg or Gulfport, two
    towns in my district, which were completed wiped out by recent
    Mississippi River flooding know all too well the importance of waterway
    infrastructure projects and I ask this Committee to also acknowledge
    the importance of these investments as well.
        Again, let me thank Chairman Spratt and Ranking Member Ryan for the
    opportunity to express the concerns and priorities of the residents of
    Illinois' 17th Congressional District. I greatly appreciate this
    opportunity and look forward to working with this Committee to advance
    a responsible Budget that adequately prepares this nation for the
    future while addressing the challenges we currently face.
        Thank you.

        [The prepared statement of Sheila Jackson-Lee follows:]

      Prepared Statement of Hon. Sheila Jackson-Lee, a Representative in
                        Congress From the State of Texas

                                      nasa
        Mr. Chairman, I have concerns about the Administration's proposal
    to cancel NASA's Constellation Program, which includes the Orion Crew
    Capsule, the Altair Lunar Lander, and the Ares I and Ares V rockets.
        These programs, which together comprise our human spaceflight
    program, were authorized in both 2005 and 2008 by Republican and
    Democratic Congresses respectively. It is under the Constellation
    program, that NASA is currently developing new launch vehicles and
    spacecraft capable of travel to the moon, Mars and other destinations.
    Not only does cancelling the Constellation Program jeopardize America's
    leadership role in human space exploration, but it will have
    detrimental effects on our economy.
        Take, for example, the Johnson Space Center in Houston, Texas. The
    Johnson Space Center has the lead to manage the Constellation Program
    and several of its major elements, including the Orion Crew Exploration
    Vehicle and the Altair Lunar Lander.
        Without Constellation, the Johnson Space Center could lose anywhere
    from 4,000 to 7,000 high-tech jobs. If the JSC loses 4,000 direct jobs,
    an additional 2,315 indirect jobs would be lost, totaling 6,315; loss
    of income and expenditures locally would be over $567 million. If the
    JSC loses 7,000 direct jobs, an additional 4,052 indirect jobs would be
    lost, totaling 11,052; loss of income and expenditures locally would
    total almost $1 billion.
        When speaking of the decision to cancel the Constellation Program,
    Administrator Bolden stated that ``NASA intends to work with the
    Congress to make this transition smooth and effective, working
    responsibly on behalf of the Taxpayers.'' To the contrary, I believe
    that the best use of taxpayers' money is to continue the investment in
    NASA to build America's scientific future. That future will create
    jobs. Finally, I would like to reiterate that the present
    Administration's plan for the Constellation Program would cause drastic
    job loss across America and would place America in a behind the edge
    position as it relates to competitiveness in scientific research.
        NASA and the space industry are critical to Houston's economic
    success in both the short and long term. According to the Bay Area
    Houston Economic Partnership, NASA accounts for nearly 16,800 direct
    federal jobs and serves as the engine for another 3,100 civilian jobs
    that together supply more than $2.5 billion in payroll into Houston's
    regional economy. As you are aware, the Johnson Space Center is the
    primary location for training Astronauts for spaceflights and this
    move; yet, the proposed budget will effectively cancel America's human
    spaceflight program.
        In his statement announcing NASA's budget, Administrator Bolden
    stressed that changes in the FY 2011 budget would be ``good for NASA,
    great for the American workforce, and essential for our nation's future
    prosperity.'' While I seek the same objectives, I strongly disagree
    with the closing of this project and I believe it will hurt America's
    scientific progress.
        Additionally, the aerospace industry would lose as many as 20,000--
    30,000 jobs nationally in either of these scenarios.
        Given our current economic downturn, we cannot take the possibility
    of these job losses lightly and the Johnson Space Center is just one
    example of what the cancellation of this program would do to other NASA
    centers nationally.
        Finally, it will take years for the commercial spaceflight industry
    to get up to speed to reach the level of competence that exists at NASA
    today. Our government has already invested literally years and billions
    of dollars into this program. We should build upon these investments
    and not abandon them. Our country can support the commercial
    spaceflight industry, but not at the expense of our human spaceflight
    program, which for years has inspired future generations and driven
    technology that enhances our quality of life.
        That is why it is my hope, Mr. Chairman, this Committee and this
    Congress will continue to support NASA's Constellation Program and to
    support balanced energy policies that promote economic growth and will
    help us meet our clean energy goals.
        Thank you.

        [The prepared statement of Bennie G. Thompson follows:]

      Prepared Statement of Hon. Bennie G. Thompson, a Representative in
                     Congress From the State of Mississippi

        Chairman Spratt, Ranking Member Ryan, and Members of the Committee,
    thank you for the opportunity to testify on the budget priorities for
    Fiscal Year (FY) 2011. As Chairman of the Committee on Homeland
    Security, I would like to focus my remarks on the Department of
    Homeland Security's FY 2011 Budget Request.
        On February 1, 2010, President Barack Obama requested just over $56
    billion for the Department of Homeland Security (Department or DHS) as
    a part of his FY 2011 budget request. Overall, under the President's
    proposal, the Department's budget is slated to increase by about 2%
    over last year's enacted funding level. Given the current fiscal
    environment, the President is to be commended for showing an ongoing
    commitment in enhancing our Nation's preparedness, response, and
    recovery capabilities.
        The Department's missions--both homeland security and non-homeland
    security--require a budget request that is far-reaching and that
    necessarily addresses:
         the security of Americans who travel by air, rail, and
    sea;
         the capacity of communities to be prepared for and respond
    to terrorism and other hazards; and
         the ability of operators of critical infrastructure and
    DHS to find innovative approaches to foster resiliency in the face of
    an ever-evolving terrorist threat.
        In general terms, I support the President's overall budget request
    for the Department as it provides the operational resources to DHS to
    execute the five (5) homeland security missions that were identified in
    the first-ever Quadrennial Homeland Security Review (QHSR) that the
    Secretary of Homeland Security Janet Napolitano transmitted to Congress
    on February 1, 2010. In addition to supporting the Department's non-
    homeland security missions, the budget is focused on funding activities
    that support the following five homeland security mission areas: (1)
    preventing terrorism and enhancing security; (2) securing and managing
    our borders; (3) enforcing and administering our immigration laws; (4)
    safeguarding and securing cyberspace; and (5) ensuring resilience to
    disasters. A budget request based on this conceptualization of homeland
    security is a step in the right direction as the Congress considers
    next year's funding for the Department.
        In reviewing this budget request, I am pleased to see Secretary
    Napolitano tackle the issue of over-reliance on contractors at the
    Department in an effort to develop a balanced workforce. Since its
    inception in 2003, contractor-dependence has stood in the way of the
    Department becoming the Federal agency that the Congress envisioned and
    what the American people deserve. The Secretary is to be commended for
    taking on this challenge that for so many years went unaddressed by her
    predecessors and for setting a goal of converting 3,300 contractor
    positions to departmental positions by the end of this year. While this
    is a step in the right direction, a great deal more work will need to
    be done to achieve a balanced workforce insofar as the Department
    relies on approximately 200,000 contractors to operate. This figure is
    roughly half of all the personnel that work at DHS.
        While I support the substance presented in the majority of this
    budget request, I do have some concerns about certain proposals.
        First, while I understand that reducing personnel at the U.S.
    Border Patrol and U.S. Coast Guard will bring short-term savings to the
    Department, I am concerned about the approach taken to achieve these
    savings. Reduction-in-force activities may result in loss of years in
    knowledge and experience. This, in turn, may result in a reduction of
    the Department's resources and capabilities to fulfill all its
    missions.
        Second, I am also greatly concerned that the budget seeks to
    consolidate a number of important free-standing grant programs into the
    State Homeland Security Grant Program. I worry that this consolidation
    will make it more difficult for local communities to receive much-
    needed funding. It also troubles me that for the second year in a row,
    the budget decreases funding for the Assistance to Firefighters (FIRE)
    and SAFER grant programs. These cuts could not come at a worse time
    insofar as State and local communities are struggling financially to
    maintain the capability gains that have been achieved in recent years.
        Third, I am particularly disappointed the Centers of Excellence and
    other University Programs--including the Minority Serving Institutions
    program--that have been in place since DHS was established, would be
    cut by nearly 20% under this budget. I strongly believe that these
    programs are the breeding grounds for the next generation of homeland
    security leaders and experts.
        Before I conclude, I would like to bring to your attention one
    operational area in the budget that I believe deserves particular
    attention--international maritime cargo screening. I find it
    incredulous that this budget seeks to decrease funding for
    international cargo screening programs by almost 48%. It is hard to
    believe that the resources for this operational area, which were short-
    shrifted by the previous Administration, are being further downscaled
    under this budget. As you know, under the Implementing Recommendations
    of the 9/11 Commission Act, the Department is responsible for ensuring
    that 100% of cargo that enters into the United States is scanned.
        In addition to the areas I highlighted, I urge this Committee to
    provide adequate resources to the Department of Homeland Security for
    FY 2011 to promote management and oversight of this diverse agency,
    fulfill all its missions, and support activities in the following
    areas:
         aviation and surface transportation security;
         maritime security;
         emergency management;
         infrastructure protection;
         intelligence and information sharing;
         science and technology;
         bio-preparedness; and
         nuclear detection.
        In closing, I appreciate the opportunity to share my views on the
    President's Budget Request and I look forward to working with you to
    ensure that the Department has the resources it needs. Thank you.

        [Whereupon, at 3:12 p.m., the Committee was adjourned.]