Rep. Ryan Questions Acting White House Budget Director On President Obama's FY2013 Budget

WASHINGTON – Yesterday, during a Budget Committee Hearing, Representative Tim Ryan of Ohio questioned Jeffrey Zients, Acting White House Budget Director, about the President's budget proposal for FY2013. Video of Representative Ryan's remarks is available here: http://www.youtube.com/watch?v=7kvqjjwYeOQ

A transcript of Representative Ryan's remarks follows:

Tim Ryan:
Thank you Mr. Chairman, I feel like I'm living in an alternative reality here because I just left the Armed Services Committee in which Secretary Panetta, head of the joint chiefs, were presenting $500 billion worth of cuts to the military, making very significant cuts that many people were uncomfortable with and it was my friends on the others side of the isle saying "Wait a minute, maybe we shouldn't make those cuts, maybe we ought to be more careful of how deep we go," and then I come to the budget committee and we're not cutting enough. So I think that's always proof that we are—I think—striking the right balance and I think you guys are doing that. I think it's also important for us to know that the republican budget adds almost 9 trillion dollars to the debt over the next ten years; the republican study commission budget adds almost 6 trillion dollars to the debt in the next few years as well. I think it's also important to point out that the policies that this president, and in many instances the democrats, passed that stabilized the economy and made investments; the stimulus package, stabilized the economy, got us to where we're going now, in the right direction—they were opposed by Republicans. The auto industry bailout in Ohio, thousands of people—one in every eight jobs in Ohio is related to the auto industry because of what President Obama did, and that is helping us stabilize things. And I think you hit the nail on the head with the issue of Medicare and I'll ask you, Medicare: is Medicare a Medicare problem, an entitlement problem, or is it a Healthcare cost increase problem that is leading to the increases in the Medicare bill?

Jeffrey Zients:
I think we need to make sure that we keep the compact we have with the American people and that we can do that through smart changes in the Medicare system—the Affordable care act saved over 100 billion dollars

Tim Ryan:
Medicare costs are going up because Healthcare costs are going up...

Jeffrey Zients:
For two reasons, healthcare costs are going up and the baby-boomers are retiring. So it's a demographic issue and it's a healthcare cost issue. Fortunately some of those healthcare cost are starting to come down, we still do have our demographic issue.

Tim Ryan:
Right, and we see in hospitals like SUMA hospital in Akron, Ohio that is focused on the patient-centered medical home—where they're beginning to use that way of re-organizing the system and the delivery of Healthcare to drive down costs. 

Jeffrey Zients:
What makes me optimistic are examples like the one you cite, we have those examples all around the country. Let's take what's working and transfer it around the country so we have best practices throughout—and best practices to find as cost-efficient care that has the best possible outcomes.

Tim Ryan:
Right, and I agree with you thinking that the Affordable Care Act is essential to all of this, and the medical homes and those kinds of things. I think it's important also to point out—someone brought up President Reagan—President Reagan did cut taxes, and then a few years later he raised taxes several times. Do you know how many times President Reagan raised taxes?

Jeffrey Zients:
I don't know the number of times...

Tim Ryan:
Six, seven, eight—something like that. And I like to remind my friends who worship at the altar of President Reagan that he would be beneath Ron Paul in the presidential primary election right now as far as support from the Tea Party. Quickly, research and development, because I love what you guys are doing with community colleges—I love, these are Youngstown, Ohio; Akron, Ohio, these are decisions in a value-based document—which is our budget—that are going to help my constituents. Ten-thousand dollars in tax credit for tuitions, Pell Grants, Community Colleges, these are the things that are going to save...

Jeffrey Zients:
Add to the list assuring that the interest rate does not go up on student loans, which it is scheduled to go up to 6.8% from 3.4%, the budget keeps it at 3.4%.

Tim Ryan:
So the average person is not only going to get a payroll tax cut, but if we start implementing some of the budget priorities from this administration they are going to see more help with their student loans—as you just stated—more money for Pell Grants, getting them into Community Colleges...

Jeffrey Zients:
Encouragement to make sure colleges are more affordable; I mean this is a major emphasis of this budget.

Tim Ryan:
I appreciate what you guys have done. This has been very, very difficult and I think what we are seeing now in Ohio and around the country is that people are starting to appreciate what has been done, and as we have weathered the storm over the past few years, and as the question now is, "Now what? Now what do we do? Now where do we go?"And I think what you're talking about with Stem College, and investments in the community colleges are going to ramp America up to be competitive, and that high-end manufacturing that we're going to need. So I appreciate what you're doing, and thank you very much, and we're here to support you.