I think we will go out and start. By Ranking Member senator could still be here shortly. I will go and make my Opening Statement and begin testimony. Thank you all for being here this afternoon. I appreciate it. Id like to thank you for your comments last week about what we need to strike. Today marks the first hearing in the Financial Services and general government to committee for the 115 congress. This is also my first hearing in a new role as chairwoman of the subcommittee. As they began the budget request, welcome our witnesses. Fcc chairman and commissioner clyburn and michael are rightly. We look forward to hearing from you all about the budget request and the work you are doing to carry out the agencys mission. Fiscal year 28 team, requesting a total of 322 million. While funding is offset by fees that do not minimize or need to ensure that the agency is operating effectively in the funds are being sent responsibly. This is especially important since these are passed on directly to the american consumer. The sec partisan actions have an enormous impact on our countrys Economic Growth and potential critical in Rural America. Communities in a state of West Virginia have been hardhit by job loss and decline creating a major drag on the states economy and our quality of life in two of our commissioners here have been in West Virginia firsthand. One of my Top Priorities is to promote policies that spur new investment and boost Economic Growth. Broadband access can provide opportunities that lead to new jobs, higher wages, provide momentum that her state economy needs. To connect our state. Broadband should be easily available and affordable. Its that simple and at the federal level weve been all trying to make this a reality. The benefits of Broadband Access are numerous but too many parts of Rural America cannot attract investment they need to get online. Communities like Tucker County or the whitewater resorts in Fayette County need robust broadband to fully capture the potential of a tourism economy. These communities can capitalize on their natural beauty, attract a technologybased workforce that simply needs a computer and strong, stable connectivity to reach clients around the globe. In order to help these communities we must equip them with the right tools to succeed. Thats why i introduced legislation to accelerate the development of highspeed internet in low income communities. The gigabit opportunity or go act encourages new investment to connect these rural and urban communities. By empowering governors and states direct investments to areas with the greatest need this proposal ensures communities with the highest potential are prioritized for funding. For providers the proposal eliminates barriers to new investment in broadband infrastructure and incentivizes competition. Under the go act the fcc is directed release a framework to streamline broadband laws throughout the state. We talked about this with the commissioners. This will eliminate the marriage of duplicative and inconsistent laws that exist in all states. Once adopted the governors would be able to nominate a portion of their states i and low income areas as gigabit opportunity zones. Businesses that invest or make upgrades to speed up the networks would benefit from targeted tax and other incentives. Internet access should be broadly available regardless of whether you live in a small town or big city and hi is connectivy is essential to growing our nations economy and in particular West Virginias economy. With all the focus on Rural America, now is time to level the Playing Field and close that Digital Divide. I will let mr. Kunz, senator coons, have his Opening Statement. Some going to turn to our witnesses and chairman pai, i will ask you now to begin with your testimony. Chairman capito, thank you for holding this evening. I want to recommend Ranking Member coons and all the members of the subcommittee for inviting us here today. Tubes into the secs fiscal year 2010 budget request. I also want to kno note the participation of my two colleagues, commissioner Mignon Clyburn and michael oreilly. Its a privilege to serve with them as we strive to meet the Public Interest. For fiscal year 2018 we developed a carefully crafted discipline budget request of approximately 322 million. That is 5. 2 below the prior fiscal years undirected spending level of approximately 339 million. We also wont need any directed move or restackin restocking fh amounted to 44,000,000. 16. 9 million in fiscal years 2016 and 2017 respectfully. In addition we propose to reduce our spectrum auction cap from 170 million to approximately 111 million. This would enable us to transfer 6 million more to the treasury. We can all agree that budget reductions dont come easily. We will face the same challenges as other agencies in doing more with less. People making budget cuts while maintaining essential services inch rolling up our sleeves and rethinking how the Commission Functions and does business. In the past se fcc chairman has emphasized that were in an entirely fee funded agency. Its important to remember as you pointed out someone is paying our freight. That summer include Small Businesses, individual licensees, as well as Larger Companies which pass along those to american consumers. It is imperative for the fcc to be fiscally responsible and to avoid unnecessary spending. I firmly believe it we refrain from Regulatory Overreach we will realize additional cost savings as well as more Economic Growth. Results that benefit everyone. While weve experienced staffing reductions over the past several years, administrative efficiencies and better ip have entered the fcc remains productive. For example, this year with 100 fewer staff than last year weve already managed to pursue an aggressive schedule for our open meetings. Commissioners consider the highest profile matters. In 2017 where averaging more than double the number of items per meeting then we considered last year. 5. 83 versus 2. 58. I expect. 58. I expect this productivity to continue into 2018. Since i became chairman in january weve been aggressive in looking for cost savings, and her staff has identified some substantial reductions. By closing our offsite warehouse and improving our internal Mail Services for a projected annual savings of 851,000. We will save another 280,000 by reducing the number of onsite printers and copy machines. As we move into fiscal year 2018 we will focus the fccs resources on advancing the four strategic goals that were outlined in our budget request. First and foremost, consistent with your comments we will concentrate on closing the Digital Divide. We will implement the connect America Fund Phase two and Mobility Fund phase to reverse auctions to bring fixed broadband and 4g lte to more of Rural America. These are complicated task to be sure but our auctions task force has a solid plan for getting the job done. If i may say on a personal note i appreciate your initiative in introducing the go act, a substantial effort i think in connecting unserved americas with Digital Opportunity. I thank you for your leadership in that regard. Second, we will work to promote innovation from implementing policies to ensure American Leadership in 5g Wireless Networks to authorize and Television Broadcasters to use the nextgeneration television standard. We will move full speed ahead on implement think the spectrum pipeline act to get more airwaves into the commercial workplace for consumer use. Third we will concentrate on protecting consumers and Public Safety. From combating Illegal Robocalls to improving Video Relay Service for deaf and hard of hearing americans will continue to pursue an aggressive proconsumer agenda. When it comes to Public Safety we will continue to support those on the front lines across the country who protect all of us each and every day. Fourth and finally we will focus on reforming the fccs processes. The American People deserve to have a transparent and responsive regulator. We have made substantial progress on this front like making Public Commission meeting at least three weeks before we vote on them but theres much more to do. And do it we will. Looking ahead to next fiscal year im excited about how the fcc can bring Digital Opportunity to more americans, promote technological innovation, protect the American People and improve our agencies operations. I believe this budget request will help us to advance these goals in a fiscally responsible way. Thank you once again for this opportunity to discuss the fcc budget proposal. Ill be pleased to answer any questions you are the members might have, look for to working with you in the future on this critical matters. Now i would like to turn to Commission Clyburn and ask for her to present her testimony. Thank you. [inaudible] lets try that again. Chairman capito, Ranking Member coons and members of the subcommittee, good afternoon. It is my distinct pleasure to appear before you to offer my perspective on the secs fiscal year 2018 budget request. Yesterday marked the fccs 83rd anniversary, and while much has changed since 1934, our responsibility when it comes to protecting consumers, advancing competition and ensuring the reliability and resiliency of Public SafetyCommunications Remains unchanged. To achieve these goals the fcc needs a fully staffed workforce. However, the agency finds itself with the fewest number of ftes in more than 30 years. In some cases this has created much needed efficiencies, in others it has required employees to double up on responsibilities with little or no pay increase. This not only put at risk the quality of the final work product, it also has a direct impact on worklife balance. To put this assertion into perspective, each year the federal Employee Viewpoint survey asked fcc employees whether they agree or disagree that have sufficient resources to get the job done. In 2011 just over 30 of fcc employees disagreed with this statement. By 2016 that figure had risen to nearly 38 . So additional budget and staffing cuts will likely lead to this number increasing even further in the coming years. Furthermore, while not unique to the fcc, an increasing number of federal employees are eligible for retirement. Today there are 362 fcc employees that are retirement eligible, equaling roughly 23 of our workforce. In practice, 124, 124 employees have already departed the agency this year, and this figure is only expected to increase. Some will retire while others will leave for new job opportunities. The while we have no choice but to think about a future which recruits and retains the nations next generation best and brightest, we must do so, and do so we will. You may have also heard me speak about the need for better broadband data, and part because have heard from far too many communities that take issue with the fccs figures. They said that where our data shows theres either fixed or mobile broadband coverage, that in actuality the service ranges from spotty to nonexistent. It should not be this difficult for the Expert Agency to have accurate data down to the street level, for we know that improved data enables us to better target our infrastructure efforts and improve the accuracy of our National Broadband map. And im a strong believer in the power of broadband to tackle some of our nations greatest challenges, particularly when it comes to healthcare. Thanks to the work of the fccs connect Health Task Force we have a clear picture of where the greatest needs exist. Chairman pai is committed to carrying on the work of the task force, and im hopeful that three sustained investment in this initiative it will continue to fuel and inform us when it comes to Broadband Health policy and investment for and in rural and underserved communities. As the subcommittee prepares its appropriations bill for fiscal year 18, i am also hopeful that i. T. Infrastructure will be top of mind. Moderate i. T. Infrastructure should be able to handle a few hundred thousand Public Comments without grinding to a halt. And to demonstrate the agencies commitment to i. T. Modernization and cybersecurity, future budget because should include a dedicated subaccount supporting these critical needs. Finally, i would like to talk about this agency spectrum auctions program. Despite several auctions currently in development and more in the pipeline, the commissions budget request would cut 5. 8 million from the program. Our auctions produce a tremendous return on investment and are a winwin for consumers, industry and the federal government. With 5g on the horizon we need to look longterm and focus on how we will provide the funding necessary to administer timely and efficiently run auctions. A sustained investment in our auctions program will unlock the next generation of wireless broadband and ensure that america remains a leader in wireless innovation. Returning to the Commission Central mission, it is a point of great disappointment to me that this fcc is on the track to dismantle many of the key rules involving Consumer Protections and competition. Is this the prelude to the commission that ultimately allows Large Companies to exist in a regulatory freezone . I ask this because of the American People count on the fcc to be the referee on the field, ensuring that our nations communication providers play by the rules and consumers have a chance to be on the winning team. But only if this agency calls the right place to be able to say that it is truly putting consumers first. Id like to thank you once again for giving me the opportunity to testify today. I look for to answering any questions you may have of me. Thanthank you, commission cliburn. Now id like to turn over to commissioner orielly. Thank you. Chairman capito, Ranking Member coons and members of the subcommittee thank you for the opportunity to appear before you. I commend fcc chairman pai for preparing the budget request present before the subcommittee. In particular i appreciate the chairman effort to trim the budget in terms of overall funding and personal compared to the fy 17 budget submission of final appropriations level. While these are difficult decisions to make, changes as is outlined in the submission can be made without undermining the ability of the commission to execute its mission. If i could suggest one area where Additional Resources may be justified it would be support for for the work on the commissions universal service fund within the Wireline Bureau. On another note what appears to be a decision to relocate the Commission Headquarters is final, i think its necessary to comment that the move a lot of negative impact on the agency. I know of several Season Agency professionals will choose to leave rather than transfer to the new location. In terms of the commissions structure would argue we maintain outdated bureaus and divisions based on icon eras pics of the put, the commission make it right or toy sizes a sound transmission mechanisms that predate the invention of the internet and the radical conversions have occurred since then. I would humbly suggest this subcommittee consider requesting the commission to prepare transformative plans for the agency structure. While this hearing is focus on the commissions fy 2018 budget, it seems appropriate to raise a couple policy issues before the commission for purposes of updating the subcommittee. As mention it is a Top Commission prior to make broadband available to it as Many Americans as possible. In addition to the two items discussed in a Budget Commission completed reform of our rate of return regulations last year. This bipartisan effort supported then and still not by the industry will allocate just over 2 billion over the next ten years for rate of return carriers so they can expand the networks economically serve, bring service to consumers. I would be remiss if i didnt mention my perpetual project to finally act on the Remote Areas Fund. Second, part and parcel reforming our subsidy mechanism the commissioners are doing, preferring to re