Tax bills came out and after a dozen years of property taxes going way up, property taxes in our state actually went down. I am proud to say today, in my state, property taxes are lower today than four years ago when we started. [applause] Governor Walker and we knew that would make a difference. Sure enough, when people saw they didnt have to see the tv ads attacking us, they didnt have to believe all the protesters, when they can see for themselves that the reforms were working, the tides started to change. I june 2012, we won that election. In june of that year with a higher percentage of more actual votes cast than we had in november 2010 two years earlier. That shows that results matter right . [applause] and the reason i tell you that is not just for background. The reason i tell you that is because i look at America Today i have a lot of the same mores that we first had when we first thought about running for governor. Many years ago, 2009 we sat down and talked about, thought about, prayed about getting in the race for governor. In our state we havent carried the state for republican since 1984. That was when i was in high school and still had a full head of hair. But when i think back to that, back early 2009, we knew it would be tough in our state to run and win. But we knew we had to. Because we were worried for a sense, then in high school, that they would grew up in the great state we grew up in. As a parent, that is unacceptable. So we got to the election, we won that title. It was all the better because when we faced all the grief we did four years ago, it was worth it because if it had just been about a title or position, we might have backed down. But because we knew it was because of our sons, matt and alex, and all the sons and daughters like them and yet to be born, we knew it was with standing up and fighting for. We knew that even though the groups we knew the tactics they were using in our state are like the texas tactics they use around the country. Instead of intimidating us, it reminder us exactly who elected us. From that point toward, we never lost floor. And that is what we need more of in America Today. [applause] today, as much as i am proud as jennifer talked about, the transformational changes we have made in our state, i am proud of the fact that for my sons and their generation, i can say that today not only is the state that are, it is as good or better than it was when i was growing up. And that was my goal because i wanted my kids to grow up in a better place than we did. [applause] but i have to tell you, as a parent, im worried. I am worried for our country. Im worried about my sons and your sons and daughters, my nieces enjoy nieces and nephews and granddaughters and grandsons, i am more in that we are headed down that same path that worried me years ago. But i am an optimist. So i am not just worried. I have optimism that if we can put the kind of leadership in place in this country that we have done in my state and many of my neighboring states, where commonsense leader stood up and said we are going to change things, we are going to lead in the way that common sense republican principles i believe we can do the same thing in america. Let me give you three examples. When i look at this country, i think there is a clear contrast out there, particularly when it comes to growth. You listen to the president of the United States, and he talked a lot i try to listen to him to see, as an american first, i hope for the best. But i hear our president , and many of his allies like clinton and others out there, who i think you grow the economy and washington. Last year, there is a report that showed that six of the top 10 wealthiest counties in america are not in new york or california or florida or texas. Do you know where they are at echo in and around washington. In and around washington. I believe in america. We believe, the vast majority of the rest of us from outside of washington which, by the way i call 68 square miles surrounded by reality. That is what washington is. The rest of us in reality understanding that we grow the economy all across this great country. That people create jobs, not the government. It is about time we have leaders who want to grow this country. [applause] it is why it is why im proud of the fact we have lowered the burden and our state and other state in glowing unemployment. Done so by lowering the burden on hard paying taxpayers. Some question the we have lowered them. Why are you so obsessed with lowering tax burdens . I have a simple way of explaining this. On every six last month, we celebrated our 22nd wedding anniversary. [applause] she is probably amazed that she hung with me that long, but particularly after the last four years, but but i made a critical mistake not long after we were married. I went to Kohls Department stores and i bought something at the price it was marked that. [laughter] right . Now, i have been trained well. I know, after many years of practice that if i am going to buy a shirt, i go to a rack that says it was 29 99, now it is 19 99. And i take it up to the Cash Register along with michaels credit card. And then i take the mailer that we get, because we shop there a lot, and sometimes it is 50 or 20 or if we are really lucky, it is 30 right . We get 30 off, and then we pose out the kohls cash and we laid on the counter. And next thing you know, they are paying me to buy that shirt, right . Right . [applause] a little aside on this, i was exit wearing a sweater yesterday i asked they stopped by kohls and bought the sweater in the rack where it was 70 off and we paid one dollar for it with our kohls cash. Living the high life. [laughter] [applause] i say how does a company like coals make money . They make it off the volume, right . They make it up on them. They could charge 29. 99 for the shirt, or they could lower the price, brought in the value, and the thing you know, all of us are buying things at a place like that. That is like your money, the taxpayers money. I could charge you a higher rate and few of you could afford it or i could lower the rates, have more are people participate in the economy. And that is how you feel the economy going forward, right . [applause] beyond just growth, which means doing things like repealing obamacare and ask the having an Energy Policy in addition to growth, there is reform. And think about the contrast here. This president and his allies tend to measure success and government by how many people are dependent on the government. By how many people are on medicaid and food stamp and unemployment. We should measure success by just the opposite. By how many people are no longer dependent on the government, right . [applause] we understand that true freedom and prosperity doesnt come from the mighty hand of the government. It comes from empowering people to live their own lives and control their own destinies. Think about it. If you dont remember anything else when i was a kid growing up in that small town of delfin, i dont ever remember when of my classmates sang to me hey scott, someday when we grew up i want to become dependent on the government, right . Nobody signed my yearbook saying, good luck, scott being dependent on the government. I met some amazing people who have come here from other places around the world. Some really amazing people. I wish my kids would hear their stories more often because to a person, though was that i have met who have been successful Small Business owners today are people who tell me the reason they came here was not to become dependent on the government, the reason they came to america because it was one of the last places left in the world where it doesnt matter what class you were born into, doesnt matter what your parents did for a living. In america, you can be and do anything you want. The opportunity to all of us but the option should be up to each and every one of us. [applause] i have to tell you, that is something i learned a long time ago. My father was a preacher, my mom was a secretary parttime raised my brother and i. My grandparents on one side were farmers, my mom didnt have indoor plumbing until she went off to junior high. My dads side, my grandfather was a machinist for 40 years. From all my parents and grandparents, i did not inherit same or fortune. What i got was more important. I got the believe that in america, if you work hard and play by the rules you should be able to do or be anything you want. That has slipped away and we need to restore that back again in america. [applause] and so i think one of the best ways we reform the federal government is by taking power out of washington and sending it back to the states. You send it back in big areas up there, right . That is the way have a government that is more efficient, more effective and more accountable to the taxpayers. At the on just growth and reform, something that is heavy on my heart these days is safety. Safety. I dont call it National Security, i call it safety. Because when you see those images of the jordanian who was burned alive in a cage, when you see the beheadings of the christians from egypt or others around the world, i have to tell you, that makes me worry not just for myself and my country it makes me worried for my children and your children and anyone else who would ever dare to travel around this world. And that is not right. And that is not right. What frustrates me is that we have a president who draws a line in the sand and somehow allows people to cross it did a president who calls isis a jv squad. Calls iran a place we can do business with. A president who gave russia a reset button a reset button. Think about that. We need a president who stands up and says our biggest threat is islamic radicalism and terrorism and will do whatever it takes to weed that out. [applause] we need a president who will do whatever it takes. Whatever it takes. [applause] who understands that we have an ally in israel, we should start acting like it. [applause] who understands that radical islamic terrorism is like a virus, and if you dont take it out entirely, it is like a virus in your theater. It will keep coming back. I dont about you, but i would rather take the fight to them rather than wait till it comes to us on american soil. [applause] and so i am more about where this country is headed. And i am worried about our position. But im an optimist. And i believe just as we have in the past, we all rise up to this occasion again. Years ago, i mentioned i grew up in a small town, my family didnt have a bunch of money, so even though i loved history, i loved our founders, i thought of them like superheroes, i never had a chance to go to washington or philadelphia or anywhere else. And so, not long after i was elected governor in the fall of 2011, we got a chance to go to philadelphia. We were there for our governors confidence conference. We got up early one morning and wanted to go by independence hall. We went by liberty bell, and we went to independence hall. I got in there as someone who thought of our founders as superheroes, bigger than life. I thought to myself, man, im going to be blown away. I got up there early in the morning, and i looked at the tables and the desks and the chairs, and i thought to myself, these are just like the chairs and desks we sit in today. And it dawned on me. These were ordinary people. These were ordinary people who did something quite extraordinary. These are people who didnt just risked their political careers these are people who did not just risked their business ventures. These were patriots who risked their lives. For the freedoms we all hold today. Moments like that are amazing to me because what they do is restore the believe in the american spirit as it reminds me that not just in those moments but all throughout her history and moments of crisis, be it economic or spiritual, what has made america exceptional, what has made is arguably the greatest country in the history of the world has been in moments of crisis like that. They had been men and women of courage who have been willing to stand up and think more about the future of their children and their grandchildren that i thought about their own political futures. I tell you here today, let this be one of those moments in history. Let this be a time in history when we can look back and tell future generations what we did to make America Great again. Thank you for the chance to come on out. God bless you. We will be back in New Hampshire. [applause] [applause] i think i think they like what you said. [applause] fantastic and the governor is going to stay and take a couple of questions. People will we are going to set out with me making a quick announcement. We havent told anybody else this. Not our final, but the next announcement we are going to make for the primary summit. April 17 and 18th. We want to see her there. Governor walker will be joining us for that, as well. [applause] thank you for that. Ok, we have some folks with microphones. Jim has his hand up right here. Allie over on this side. Can you hear me . All right. The board of directors have asked you to me to give you this hats. We hope youll wear the hat often and keep up the good work. [applause] i also have a question. Thank you. It looks great. [applause] looks great. I am also president of the New Hampshires date council of vietnam veterans. I understand that you are, and based on the comments you made, a little more than receptive to the idea that we might be going back to the middle east. I am wondering what your objective in the middle east would be . What the walker administrations grand strategy to achieve that objective would be . And how it is going to differ from the last two president s, in my opinion, counterproductive efforts . Governor walker first off thank you for your service. A tip of the hat for that. We can never say it enough particularly for our vietnam veterans. I think you can appreciate this as much as anyone else here. No matter who the commander in chief is in the future anytime the commander in chief mexico decision that will ultimately involve american men and women being called in the harms way we need to have a Clear Mission and we need to follow through on that mission. [applause] i want to be clear because i dont want to get ahead of the game, but should we choose to get into this race, and we are feeling pretty strong about reactions like we heard here today and others across the country, and should we be blessed through on the votes of people not only here in New Hampshire, but around the country, one of the things i would take most usually is not just being present, but the commander in chief because, i have to tell you, im not a bracelet person, but i have three bracelet on my arms that come from goldstar families. Funerals i have gone to as governor or before for their sons. As i think about a question like that timmy, i think about the fact that personally i dont ever want to go to a funeral like that again. But i also know for those sons and for the sons and daughters that they represent across this country, i also want to make sure that i can look those families in the eye and say their son or other sons and daughters like them did not die in vain. And that we will live up to the mighty goals that led them into serving our country in the first place. To me, i look at what i believe is not well defined by some in our political discourse today, and that is i think are clear struggle right now is radical islamic terrorism. I see it embodied right now in syria and libya, but growing elsewhere across the world. And i believe fundamentally when you listen to the leaders of organizations like isis and others like them, it is clear. It is not to stay in the middle east. It is eventually to come back to american soil and cause harms harm to american. My believe is, just like a virus in a computer, that we need to go into whatever length is required to make sure we eradicate radical islamic terrorism where it is at before it washes up. I dont think that means you automatically go with Ground Troops although, unlike this president , i will not signal to our enemies how far we will go. Because i think [applause] i think that is a problem, even his former secretary of defense has said that is a mistake because they will just eat you out. But i think we should not be doing it alone. First and foremost, you have to consult with the congress. You have to listen to those who advise you, the generals in the field to get a real feel for what is going on, as well as your intelligence community. Restating israel as a prime alec ally, but also working with england, japan, germany, canada, and others out there. I believe there are partners in the coalition we can draw on from the arab world like jordan like egypt is what has happened to their own citizens out there and have a true coalition force. And then we had to take action depending i do not i am not proposing to engage full scale puts on the ground, but im not taking that off the table because i think we need to be clear what our objective is. And our objective has to be a generational act to make sure we eradicate radical islamic terrorism before it comes to our shore. [applause] [indiscernible] hello . Yes, i guess it is on. Ok. You had mentioned earlier about taking power away from the federal government and moving it to the states. So i am interested in removing powertel from the federal government and ask lee giving it to parents as people who pay taxes to their local schools. So i have a twopart question on education. Can you please tell us what you have done in your state, if you eradicate common core that is causing havoc in our schools right now . That is the first question. And the second question has to do with the reauthorization of no child left behind because jeb bush was in after last night and says he wants to reauthorize a failed program. I cant figure that out. But could you tell us what your thoughts are on hr five . Governor walker when i talked about the three buckets growth, reform and safety. I think we need to move whole skill portions of the Government Back to the states, or in some cases back to the local governments. Like education, which would ultimately put those levels of government more accountable to everyday taxpayers. Not every level of government, obviously, is perfect, but it gets closer. I would move those to the states, and areas like transportation, i would predispose the senate all the way back to school. I tell people take one dollar out of your purse or your wallet and ask yourself where would you better have that spent . Sitting at the washington, where they take all this money often put it into the bureaucracy and her school eventually gets pennies on the dollar back. Or is it better spent keeping that dollar area schools in the first place where your school board members, teachers, parents, and others can make a difference . That is something i say, not just as an answer to you. I think we are better off in that regard. So that answers your other part. No tell or anything else that, i would rather have the money and the authority go back to the local level. I think we are better off in that regard. [applause] and on the other part, i am all for high standards. I am pleased to say that after four years of our reform, even though the left said it would just annihilate Public Education in our state which was cut of interesting for me because we had two sons in Public Schools at that time like, why would i want to do that to my kids . But the reality is because of our reforms that put the power back in the hands of the taxpayers and the people they elect to run our school boards, because of what we have done, we haveyorty, we have no tenure, we can hire and fire based on merit. We get paid based on performance. [applause] that means our schools can put the best and the brightest in our classrooms. And the good news is, our scores are better. A ct scores of the second best in the country. Restoration rates are up. I like that. But i believe in high standards set at the local level. I do want someone from all of our state telling me what high standards are. I want those to be set by people at the local level, and our state. It is weird we have a separate department of public instruction, which is independently elected so i dont have a cabinet position to say to the secretary of education, do this. By statute, i have to make those changes in the budget. The budget i presented on the birther removes any legal requirement from any School District in our state to have to abide by common core. And it removes all funding for the smart balance test, which is tied into common core. [applause] she asked if i liked the visor on this. It is perfect. I am proud to say that i signed the law that made wisconsin the fortinet state in the country do have concealed carry, as well as castle doctrine. So i appreciate that, as well. [applause] Governor Walker, i want Governor Walker shouted out and i will repeat it. I want to thank you personally for what you did in wisconsin. [indiscernible] i want to start by thinking of for that. My question is, one of the biggest threats to this country is the debt and the overreach of the federal government. And they would not be able to connect other policies if we didnt have a federal income tax because as long as they can take on monday, there is nothing we can do about it. And i was wondering your stance on abolishing the federal income tax. Because as long as they have it, [indiscernible] Governor Walker i didnt propose that, although it sounds pretty tempting. Certainly, i think lower rates. We have talked about that and looked at that. Right now not being a declared candidate, but should i get into that race, that is something we will on in the growth category. I will say, as i mentioned before, one, putting more money back in the hands of the hard thing taxpayers, which is your money to begin with, is a much better way to grow the economy rather than the governments socalled the millis, which has a much lower rate of return than if you and other job critters had the money out there. But for your larger point about the size and scope of the federal government, to me it is part of the reason why workforce investment dollars social Service Programs part of the challenge we have controlling our government both in terms of its size and for the limited part that is left that should be under the government for example, defense we dont do a very good job at the department of defense giving the resources we need, yet we spent all this money and all these other areas. We need to send the vast madrid back to state, local governments, and ultimately back to the taxpayer. The closer you get to the people, the boy can hold your government accountable. [applause] terrific. The governor wants to have time to shake cans and say hi to all of you so i think that will be our last question. I want to come back to the next wrasse roots trading, even though Governor Walker probably wont be at that one. We need you to keep coming back all through the year. Let me encourage you wrote go get registered for that summit. Governor, thank you so much for coming to the hampshire. [applause] [indistinct chatter] [indistinct chatter] [indistinct chatter] [indistinct chatter] [indistinct chatter] Wisconsin Governor Scott Walker attending a grassroots workshop in New Hampshire. He headed to is heading to washington dc tonight for the annual gridiron dinner. It includes journalists and invited guests from governments. You can look for that around 5 00 p. M. Eastern time here on cspan. Todays stop in New Hampshire was one of several for Governor Walker. He was in manchester yesterday where in an interview with the tampa bay times, he was asked about former Florida Governor jeb bush possibly making a run for the white house. Governor walker was quoted as saying jeb is a good man. You are not going to heat hear me speak ill about him. But if we are running against hillary clinton, we will need a name from the future, not a name from the past to win. Jeb bush was in New Hampshire last night, attending a house party in dover. It was at the home of fergus . Here is a brief look at that event. I am a Small Business owner with my two brothers, and it kind of pulls my employees and i kind of pulled my employees on what to ask you. Former governor jeb bush what are we doing to in one part. The first will be on the Affordable Care act. Are you on a full repeal, or do want to take it and fix what is broken john go and the question is where do you stand on minimum wage, federal minimum wage . Former governor jeb bush the question is minimum wage. I dont think we need to raise the minimum wage at the federal level. As relates to the Affordable Care act, and a Perfect World which is kind of what the Campaign World is a Perfect World in some ways, [laughter] i wouldnt like to repeal and fix. You have the preexisting condition elements of any plan. You would have probably it is popular, i guess, a small number, but for your reposes for your people to stay on their parents plan. I am not passionate one way or the other on that, but there would be things that you have in the new plan. But the idea that the federal government, through these massive subsidies, is going to and exchanges where there is also itself, you know, mandated, employee mandated, employees mandate, all these things that increase the cost of insurance is that it is going to work over the long haul, i think its want to the core. What i think of a better is a better plan is a replacement plan. You can see all of that event online at cspan. Org. We will also have more road to the white house coverage this weekend with senator ted cruz. He is the featured speaker at the Lincoln Reagan dinner. You can see that sunday here on cspan. Next, a Senate Armed Services hearing with officials from the naval branch. They testified here on the navys to request for 2016. This is two and half hours. [indistinct chatter] chairman mccain good morning. I want to welcome the witnesses. I thank you all for being here this morning. The Committee Meets to receive testimony on the plans and programs of the department of the navy for fiscal year 2016. I want to thank each of our witnesses for their distinguished service to the nation, as well as to the sailors, marines, and civilians they lead who are serving around the world today. This is admiral greener its last hearing before the committee and im sure he is relieved to know that. But his last appearance as chief of naval operations, and out like to thank you, admiral greener, for your years of distinguished service to our navy. And i wish you and darlene all the best in the future. In the last three months, some of americas most experienced state statesmen have offered this committee a clear, unified, and alarming assessment of current worldwide threats. As dr. Kissinger testified on january 29, the United States has not faced a more diverse and complex array of crises since the end of the second world war. The actual global challenges we face are compounded by the limitations of the budget control act in sequestration. Which is a selfinflicted National Security crisis. Indeed, all four of the military Service Chiefs have testified that defense spending and sequestration levels would put american lives at risk. Now, more than ever, a strong navy and marine corps are essential to our nations ability to the terror a la enemies, assure allies, and defend our national interests. To deterring factors like iran or north korea to many other requirements, the u. S. Navy and marine corps are key pillars of our National Security strategy. Yet, by any measure, todays fleet of 275 ships is too small to address these critical security challenges. The navys poor Structure Assessment requirement is 306 ships. The Bipartisan National Defense Panel calls for a fleet of 323 to 346 ships. And our commanders say they require 450 ships. But under sequestration, the navy has said the fleet could check to 260 ships, equally troubling. The marine corps continues personnel reduction down from 2002000 activeduty marines in 2012 to 184,000 today to 182,000 and 2017. With the demands on our sailors and marines rising, these fours reductions, coupled with major readiness shortfalls to to sequestration, are lengthening deployment, cutting training and time at home with families, and putting our all volunteer force under considerable strain. The president s budget request attempts to buy as much readiness as the department can execute for fiscal year 2016. And this is yet another reason why we cannot afford a Defense Budget at sequestration levels. The president s budget also includes significant funding request or major navy and record acquisition programs. In the current fiscal environment, it is all the more important for this committee to conduct rigorous oversight of these programs to ensure that the department of the navy is making the best use of limited taxpayer dollars. That is exactly what we will do. With the combat ship despite neutral cost overruns, it more than double the cost of ship. The navy appears to have stabilized the cost of the csc frames. And yet the Program Still faces challenges to deliver the promised war fighting capabilities. All three of the lcs Mission Packages still need significant testing and must overcome Major Technology integration talent is. Regarding the secretary of defenses decision to upgrade the lcs, this committee will continue seeking further information to justify this decision. Without a clear capability based assessment, it is unclear what Operational Requirements the upgraded lcs is designed to meet. And how much more lethal and survivable a ship needs to be. The navy must demonstrate what problem the upgraded lcs is trying to solve. We cannot afford to make this mistake again. The first three ford class carriers, despite cost overruns of more than 2 billion each, this program has not exceeded the cost cap in the last three years. However, the second ford class carrier, the uss john f. Kennedy, was delivered in fiscal year 2022, less capable and less complete due to the navys proposed twophase delivery approach. This plan would leave us with an incomplete ship, should world events demand in additional Aircraft Carrier or if the uss nevitt encounters unforeseen problems in the final years of its 50 year service life. I am also concerned about the navys plan to delay full ship shock trials that day that delay is hard to justify for a new shipment is this complex. This Committee Also has a duty to shape the future of our navy and marine core with three service combatant classes set to retire soon, now is the time to lay the Analytical Framework to replace those ships. As the next class of amphibious vessels, we must make sure that we are able to support our marines to fight in the future. We must also carefully examined the future of the aircraft fleet 12 billion or more for one ship is sadly too expensive. We must do even more to reduce costs and increase habitation within the Aircraft Carrier program. As challenges to american air power grow, we must chart i a pass. We look forward to the witnesses testimony today and hope they covered the Broad Spectrum of issues that the department confronts. Senator reid. Senator reed thank you very much. Let me thank the test of secretary may bus for joining us. I want to welcome general dunford i also want to commend thank you very much for your service to the navy and to the nation. This morning, we face huge challenges with the need to increase the technological edge, critical to the success. This has been made difficult due to sequestration. All of the military departments have been forced to make tradeoffs. Now, the threat of sequestration continues to loom. If congress does not act to and sequestration, i believe our longterm interest will be threatened. Last year, the navy was facing problems, reduced hours, and canceled the appointments. Increased and from emphasis on this budget will reduce some serious problems, but will reduce in a series shortfall on any future threats. Im interested in hearing the witnesses views on the increase of this views due to the shortfall. The navy is facing shortfalls they have already been offering for two years now with fewer than the required 11 Aircraft Carriers. During the next decade, as a priority, the navy will need to buy a firstclass submarine. A very costly venture. Im interested in hearing how the navy is operating with these shortfalls. Im also in just how they will manage the mans on the budget once the cost of replacement begins. The president s budget of one hundred 84 marines 184,000 marines. Ive is how the navy will manage this. For the marine corps, the request of decisions made last year that may ground systems more sound. The marine corps clearly remains committed to the revitalization and the budget request requires upgrades. It continues a competitive search for a new amphibious combat vehicle. We understand that the amphibious combat Vehicle Program would incorporate a number of technologies. The marine corps has described this as quote nondevelopmental, which raises questions of why that is. Im interested on your comments of what this full program is. It is also a challenge on what general dunford has called a gap. Sometimes, loss in that discussion i know that the navys plan purchase is one effort to address the shipping shortfall. Im interested in knowing what else will mitigate the gap to ensure that our amphibious gap is capable and ready. Issued a generator 2012, followed by the two 2014 and this january, all at goa a new orientation on the asiapacific. Consistent with that strategy, the Defense Department has worked to realign forces, and plans its position in australia, singapore, and possibly elsewhere in the region. The department has also showed deployment in singapore. Im interested in hearing more about these and other aspects of deployment. I get, there are many questions. I want to want to get thank you all for your extraordinary service. Thank you. Senator mccain mr. Secretary. Secretary malbus thank you for this opportunity to discuss the department of the navy with the chief of naval operations. I have a great privilege of representing the sailors and marines that serve our nation around the world. As the chairman and senator reed pointed out testimony before this committee every day, his judgment and advice, his good counsel have been critical. It is an honor to serve with him. He will leave a lasting legacy. Today, our security interests facesa an increasing amount of demands. It is clear that the navy and marine core team often the best value to advance our Global Security and our economic interest. Uniquely the navy and marine corps provide presents around the world, around the clock. We are the nations first line of defense, ready for anything that may come over the horizon. President s means that we respond faster we stay longer, and we carry everything that we need with us and do whatever missions are assigned by our leaders without needing anyone elses permit permission. We have always known that american success depends on an exceptional navy and marine corps. Article one of our constitution authorizes congress to raise an army when needed, but directs you to provide and maintain a navy. To the growing force of today, from tripoli to afghanistan american leaders across the political spectrum have understood the vital significance of seapower. We the flooring in peace just as much as in war. We have acquired sea lanes and commerce, boosting our own and the world economy. Nearly half of the worlds population lives within 100 miles of sea. 90 of all global trade goes by seat and 95 of data goes under the ocean. The shelves of our stores are stocked with justintime Delivery Products from all over the globe, and some 38 million american jobs are directly leinke to seaborne trade. For seven decades, the navy and marine corps had been the primary protector of this international sector. That is why, investment is required in maritime assets. For the past two years, the department of the navy has attempted to minimize the impact of a and uncertainty economic environment, indicated by sequestration. This environment has made it much more difficult, but even more critical to set priorities and to make some hard choices. The presence of our navy and marine corps uniquely deliver on foundations people platforms, and partnerships. These are key to our success and my top priorities. People. Our marines and sailors are known for independent judgment and ability to adapt. Were commitmed to provide our sailors and marines with training. We include in this, their dedicated families, are injured and are wounded. We have lost an approach to assure the resilient and most educated for us, one that truly represents americas diversity. We continue to aggressively combat sexual isil Sexual Assault and we have innovative means of how we manage the force. In platforms our people, as good as they are, cannot do what they do with our ships. Providing presence, when we are needed, requires no ships. Quantity has a quality all of its own. That means we have to have a properly sized and properly balanced fleet. On september 11, 2001, the navy battle voiceforce stood hundreds of ships, in two dozen eight, it had declined. In five years since ive been in office there have not been enough ships. In my first five years, we contracted for 70 ships, halting and reversing the decline. I the and of decade, our fleet will once again operate 300 ships. We have accomplished this with direct and a fundamental business approach, based in large part by legislation that originated in this the committee, authored by senator mccain. Things like increasing competition, relying more on fix price contracts, and thanks to this Committee Congress has had multiyear buys. Budget uncertainty seriously and related aeroded our abilities. The navy core will not be able to meet the demands, for which we are often the best and only option. In the face of budgetary uncertainty, cutting shifts is the most damaging and least reversible action. That is why i am committed to keeping shipbuilding at the maximalum possible. The navy has a history of innovation, particularly in Energy Pioneering nuclear power. We believe that our National Security interests, and the ability of the navy core must be enhanced by increasing our Energy Diversity and efficiency. Our ability to maintain presence will also be augmented through partnerships. Caught cooperation makes us more effective and diffuses tensions. Again and again, our naval forces have proved themselves the most immediate, most capable, and most adaptable option when a crisis develops. Overall, the president s budget balances current readiness needed, while sustaining a highly capable flea, all within a tough physical climate. That climate demands, as you pointed out, mr. Chairman, are most rigorous examination of every dollar spent and continuing vigorous efforts to shift efforts from tilted to tail to tooth. When the navy is called, we are always there. The commandant, the chief of naval operations, and i look forward to answer your questions and working together with the committee and with congress to maintain our great navy and marine corps. Thank you. Senator mccain thank you mr. Secretary. The complete statements have been submitted. All three of you will be included in the record. General dunford. General dunford i am honored to be here today to represent your marines. I will begin by thanking the committee for your steadfast support. Due to your leadership,. I know the committee and the American People havestation High Expectations of the marines. When we fight, you expect us to win. You expect a lot from the marines, and you should. This morning, as you hold this hearing, marines are engaged doing exactly what you would expect. Our role influences how we
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