Tuesday, May 7, 2013

UPDATE 3-Tenet sees benefit in 2014 from health reform

* Expects to treat more patients with insurance under reform

* Says signed first contracts for insurance to be sold on exchanges

* Q4 profit 45 cts/shr vs loss 70 cts/shr year ago

* Reiterates 2013 EBITDA outlook; says budget cuts factored in

* Shares up less that 1 percent

Feb 26 (Reuters) - Tenet Healthcare Corp said on Tuesday it expects the U.S. healthcare reform law to have a positive impact on its earnings in 2014 as uninsured patients start to obtain coverage through the new health insurance exchanges.

Tenet, the No. 3 for-profit U.S. hospital chain, also reported a fourth-quarter profit versus a year-ago loss as outpatient visits to its hospitals increased.

The Dallas-based company said it has traditionally treated more uninsured patients than other publicly traded hospital chains due to the markets it is in, including Texas, where a quarter of the state's population is uninsured.

This burden is expected to diminish as those patients obtain insurance through the exchanges, beginning in 2014.

"Everything about health reform should help alleviate some of the pressures on us," Tenet Chief Executive Trevor Fetter said in a telephone interview.

Tenet anticipates a positive impact on its earnings even if states such as Texas do not participate in a planned expansion of the Medicaid program for the poor.

"We see a lot of upside in our markets," Fetter said on a conference call. The company expects to have more details on how health reform will affect its business in the next few months, he added.

An estimated 26 million people are expected to obtain coverage through the health insurance exchanges being set up under the U.S. Patient Protection and Affordable Care Act. But some Republican-led states have rejected both the exchanges and the Medicaid expansion.

Tenet recently signed its first contracts with three Blue Cross and Blue Shield plans for health insurance to be sold to individuals through the exchanges, covering about 30 percent of its hospitals, Fetter said. The plans have a structure similar to its commercial contracts, but with a modest pricing discount of less than 10 percent from current rates, he said.

"Where we have accepted any discount at all, it is for additional market share," Fetter said.

Tenet posted fourth-quarter earnings of $49 million, or 45 cents a share, compared with a loss of $76 million, or 70 cents a share, a year earlier, when the company took a large charge for the early retirement of debt.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 16.7 percent to $336 million. Net operating revenue rose 7.3 percent to $2.33 billion.

Tenet reiterated its outlook for 2013 EBITDA of $1.325 billion to $1.425 billion.

The outlook includes an expected reduction to Tenet's revenue and earnings of $45 million this year if automatic U.S. budget cuts, known as sequestration, go into effect.

"We have expected for a long time that it would happen and have planned for that," Fetter said.

In the fourth quarter, Tenet said adjusted patient admissions, which include both inpatient and outpatient volumes, rose 2.9 percent, with outpatient visits up 7.3 percent and outpatient surgeries climbing 13.9 percent. Total admissions were flat, while emergency room visits increased 8.6 percent.

"All things considered, it was a decent quarter," said Jefferies & Co analyst Brian Tanquilut.

Uninsured and charity admissions rose 1.1 percent. Bad debt expenses as a percentage of revenue was 7.9 percent, up from 7.7 percent from a year ago, as more uninsured patients sought treatment, Tenet said.

Tenet, which last week announced plans to acquire Emanuel Medical Center in Turlock, California, is gaining a greater appetite for hospital acquisitions, after focusing on acquiring physician practices and outpatient centers in recent years, company executives said on a conference call with industry analysts.

Tenet shares were up 0.5 percent to $37.82 in Tuesday afternoon trading on the New York Stock Exchange.


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Remarks by the President and Vice President at Meeting of the National Governors Association

The White House

Office of the Press Secretary

State Dining Room

11:18 A.M. EST

THE VICE PRESIDENT:  Thank you all.  I tell you what, I didn't know Jack was as good as he is until I heard that rhyme last night.  (Laughter.)  Jack, if you had done that, I’d be introducing you here.  (Laughter.)

Thank you all very, very much.  I’m sorry -- you guys are much more disciplined than the place I lived for 36 years, up on the Hill, and you’re running ahead of schedule.  And so the President is with me, and I want to thank you all for being here.  
We have a lot to work on.  There’s a lot from fixing a broken immigration system to rebuilding our nation’s infrastructure, and this new word everybody in America is learning about -- “sequester.”

This town, unlike many of your capitals, is I hope temporarily frozen in -- not indifference but in sort of an intense partisanship, the likes of which in my career I’ve only see the last couple years.  But you know the American people have moved to a different place.  By the way, thanks for being so nice to my wife last night.  I like you a hell of better.  (Laughter.) We disagreed on some things.  

But all kidding aside, I think the American people have moved -- Democrats, Republicans, independents.  They know that the possibilities for this country are immense.  They're no longer traumatized by what was a traumatizing event, the great collapse in 2008.  They're no longer worried, I think, about our economy being overwhelmed either by Europe writ large, the EU, or China somehow swallowing up every bit of innovation that exists in the world.  They're no longer, I think, worried about our economy being overwhelmed beyond our shores.  

And I don't think they're any more -- there’s no -- there’s very little doubt in any circles out there about America’s ability to be in position to lead the world in the 21st century, not only in terms of our foreign policy, our incredible defense establishment, but economically.  I think the American people are ready to get up.  As a civil rights leader, when I was coming up as a kid, said, they're just -- the American people are tired of being tired.  I think they're ready to get up and move.  And you guys know that because it’s happening in your states.  You probably feel it in your fingertips more than most of us do here in Washington.

And as I said, I think they know we’re better positioned than any nation in the world to lead the world.  And that's why I think they're so frustrated by what they see and don't see happening here in Washington.  And I think their frustration is turning into a little bit of anger.

I found an interesting dynamic -- without ruining any of your reputations and picking out any one of you -- but whether it was a Democrat or Republican governor I had been talking to last night and over this past weekend, I heard from several of you, both parties, how do you deal with this going on up here?  How do you deal with the Congress?  No distinction, Democrat or Republican, depending who I was talking to, no distinction about who you’re dealing with -- but how do you deal with this?  Because you guys deal and women deal with legislatures that are split.  Some of you represent a minority party as a governor, yet you get on very well with -- you accomplish things in your home state.  And as I said, I’ve been here long enough -- that's the way it used to work, and I think we can make it work that way again.

But there’s a number of things we have to do immediately, and we may disagree on how to address them, but I don't think anybody disagrees on the need for them to be addressed -- from implementing the Affordable Care Act.  It’s the law.  You all are grappling with that.  Each of you are making different decisions, but you’re grappling with it.  You’re moving and you’re making your own judgments.  

We also have to -- I don't think there’s much disagreement there’s a need for immigration reform.  I’ve not met a governor from the time of implementing the Recovery Act to now who doesn't think that we have do something about our crumbling infrastructure in order to impact on our productivity here in this country -- continue to attract, keep and bring back American business from abroad.  

And there’s very little disagreement on the need to build an education system that has such immense possibilities for our people.

But on most of these issues we’re united by more than what divides us.  All these issues intersect at a place -- the ones I just mentioned and others -- they intersect at a place where both the state and federal governments engage.  So we’re going to have to work together.  They overlap in many cases.  

We’ll have our differences, but we all should agree that the United States has to once again have the highest percentage of college graduates of any nation in the world.  I don't think there’s any disagreement.  Everybody agrees and some of you governors have led the way on early education and the consequences for the prospects of success for our children not only of graduating, but avoiding the criminal justice system.  You’ve all led in knowing that we have to have reform of our high school system so that we -- and not only finding a pathway for people who are going to four-year college and community college but go into the trades.  

So there’s so much agreement that I think we ought to be able to get a fair amount done.  And we should all agree that to grow our economy we have to invest in manufacturing, clean energy, infrastructure, education.  The question is who invests and how much and how -- we’re going to debate that.  But there’s not much disagreement about the need to invest.  

And I think we’re all -- I’ve never met a Democrat or Republican who’s been a governor who doesn't think that the American people should have the sense that hard work is going to be rewarded, that there’s a chance that if you work hard, you got an opportunity.  I don't know of any group of men or women who are a better living example of that than all of you sitting in front of me in your own experiences.  

So the question is -- we all use the phrase “move forward in a balanced way” -- when one man’s balance is another man’s imbalance, but that's what we got to talk about.  That's what’s at stake.  But the one thing that I don't think any of you lack is a vision about how great this country can be now that we’re coming back, that we ought to be able to reassert ourselves in a way that we own the 21st century.  And I know the guy I’m about to introduce believes that as strongly as all of you do.

Ladies and gentlemen, let me introduce you to the President -- who’s back with the pastry chef and I’m wondering what he’s doing back there.  (Laughter.)  The President of the United States, my friend, Barack Obama.  (Applause.)

THE PRESIDENT:  Thank you, everybody.  (Applause.)   Thank you.  Thank you, guys.  Please have a seat.  Well, welcome, everybody.  Thanks for being here.  

We all have a lot on our plate, everything from our immigration system to our education system.  As Joe talked about, our goal is to make sure that we can be an effective partner with you.

I want to thank the members of my Cabinet who are here, and members of the administration.  I want to thank Jack and Mary for their leadership of the NGA.  And everybody else, I just want to say thanks to you for being on your best behavior last night.  (Laughter.)  I’m told nothing was broken.  No silverware is missing.  (Laughter.)  I didn’t get any calls from the neighbors about the noise -- although I can’t speak for Joe’s after-party at the Observatory.  I hear that was wild.  (Laughter.)  

Now, I always enjoy this weekend when I have a chance to see the governors.  As leaders, we share responsibility to do whatever we can to help grow our economy and create good middle-class jobs, and open up new doors of opportunity for all of our people.  That’s our true north, our highest priority.  And it’s got to guide every decision that we make at every level.

As I’ve said, we should be asking ourselves three questions every single day:  How do we make America a magnet for good jobs? How do we equip our people with the skills and the training to get those jobs?  And how do we make sure if they get those jobs that their hard work actually pays off?  

As governors, you’re the ones who are on the ground, seeing firsthand every single day what works, what doesn’t work, and that's what makes you so indispensable.  Whatever your party, you ran for office to do everything that you could to make our folks’ lives better.  And one thing I know unites all of us, and all of you -- Democrats and Republicans -- and that is the last thing you want to see is Washington get in the way of progress.  

Unfortunately, in just four days, Congress is poised to allow a series of arbitrary, automatic budget cuts to kick in that will slow our economy, eliminate good jobs, and leave a lot of folks who are already pretty thinly stretched scrambling to figure out what to do.  

This morning, you received a report outlining exactly how these cuts will harm middle-class families in your states.  Thousands of teachers and educators will be laid off.  Tens of thousands of parents will have to deal with finding child care for their children.  Hundreds of thousands of Americans will lose access to primary care and preventive care like flu vaccinations and cancer screenings.  Tomorrow, for example, I’ll be in the Tidewater region of Virginia, where workers will sit idle when they should be repairing ships, and a carrier sits idle when it should be deploying to the Persian Gulf.  

Now, these impacts will not all be felt on day one.  But rest assured the uncertainty is already having an effect.  Companies are preparing layoff notices.  Families are preparing to cut back on expenses.  And the longer these cuts are in place, the bigger the impact will become.

So while you are in town, I hope that you speak with your congressional delegation and remind them in no uncertain terms exactly what is at stake and exactly who is at risk.  Because here’s the thing -- these cuts do not have to happen.  Congress can turn them off any time with just a little bit of compromise. To do so, Democrats like me need to acknowledge that we’re going to have to make modest reforms in Medicare if we want the program there for future generations and if we hope to maintain our ability to invest in critical things like education, research and infrastructure.

I’ve made that commitment.  It’s reflected in proposals I made last year and the year before that, and will be reflected in my budget, and I stand by those commitments to make the reforms for smart spending cuts.  

But we also need Republicans to adopt the same approach to tax reform that Speaker Boehner championed just two months ago.  Under our concept of tax reform, nobody’s rates would go up, but we’d be able to reduce the deficit by making some tough, smart spending cuts and getting rid of wasteful tax loopholes that benefit the well-off and the well-connected.  

I know that sometimes folks in Congress think that compromise is a bad word.  They figure they’ll pay a higher price at the polls for working with the other side than they will for standing pat or engaging in obstructionism.  But, as governors, some of you with legislators controlled by the other party, you know that compromise is essential to getting things done.  And so is prioritizing, making smart choices.  

That’s how Governor O’Malley in Maryland put his state on track to all but eliminate his deficit while keeping tuition down and making Maryland’s public schools among the best in America five years running.  That’s how Governor Haslam balanced his budget last year in Tennessee while still investing in key areas like education for Tennessee’s kids.  Like the rest of us, they know we can’t just cut our way to prosperity.  Cutting alone is not an economic policy.  We’ve got to make the tough, smart choices to cut what we don’t need so that we can invest in the things that we do need.  

Let me highlight two examples of what we do need.  The first is infrastructure.  This didn’t used to be a partisan issue. I don’t know when exactly that happened.  It should be a no-brainer.  Businesses are not going to set up shop in places where roads and bridges and ports and schools are falling apart.  They’re going to open their doors wherever they can connect the best transportation and communications networks to their businesses and to their customers.  

And that’s why I proposed what we’re calling “fix-it-first” -- I talked about this in my State of the Union address -- to put people to work right now on urgent repairs like the nearly 70,000 structurally deficient bridges across the country.  And to make sure taxpayers don’t shoulder the entire burden, I also proposed a partnership to rebuild America that attracts private capital to upgrade what our businesses need most -- modern ports to move our goods, modern pipelines to withstand a storm, modern schools that are worthy of our children.

I know that some people in Congress reflexively oppose any idea that I put forward, even if it’s an idea that they once supported, but rebuilding infrastructure is not my idea.  It’s everybody’s idea.  It’s what built this country.  Governor Kitzhaber, a Democrat in Oregon, has made clean-energy infrastructure a top priority.  Governor Brownback of Kansas, a Republican, has been fighting to upgrade water infrastructure there.  

And folks who think spending really is our biggest problem should be more concerned than anybody about improving our infrastructure right now.  We're talking about deferred maintenance here.  We know we're going to have to spend the money.  And the longer we wait, the more it’s going to cost.  That is a fact.  I think Matt Mead, a Republican, put it pretty well in Wyoming’s state address.  He said failing to maintain our roads “is not a plan for being fiscally conservative.”  Well, what's true in Wyoming is true all across the United States.  

And we could be putting folks back to work right now.  We know contractors are begging for work.  They’ll come in on time, under budget, which never happens.   And we could make a whole lot of progress right now on things that we know we're going to have to do at some point.  This is like fixing the roof or repairing a boiler that's broken.  It will save us money in the long term.   

I know that one of the biggest hurdles that you face when it comes to fixing infrastructure is red tape.  And oftentimes, that comes out of Washington with regulations.  In my first term, we started to take some steps to address that.  And we’ve shaved months -- in some cases, even years -- off the timeline of infrastructure projects across America.

So today, I’m accelerating that effort.  We’re setting up regional teams that will focus on some of the unique needs each of you have in various parts of the country.  We’re going to help the Pacific Northwest move faster on renewable energy projects.  We’re going to help the Northeast Corridor move faster on high-speed rail service.  We’re going to help the Midwest and other states, like Colorado, move faster on projects that help farmers deal with worsening drought.  We’re going to help states like North Dakota and South Dakota and Montana move faster on oil and gas production.  All of these projects will get more Americans back to work faster.  And we can do even more if we can get Congress to act.    

The second priority that I want to talk about is education  -- and in particular, education that starts at the earliest age. I want to partner with each of you to make high-quality preschool available to every child in America.  

Now, this is an area where we've already seen great bipartisan work at the state level.  I was just in Governor Deal’s state to highlight this issue because Georgia has made it a priority to educate our youngest kids.  And in the school district where I visited in Decatur, Georgia, you're already seeing closing of the achievement gap.  Kids who are poor are leveling up.  And everybody is seeing real improvement, because it's high-quality, early childhood education.

Study after study shows that the sooner children begin to learn in these high-quality settings, the better he or she does down the road, and we all end up saving money.  Unfortunately, today fewer than three in 10 four-year-olds are enrolled in a high-quality preschool program.  Most middle-class parents can’t afford a few hundred bucks a week in additional income for these kinds of preschool programs.  And poor kids, who need it most, lack access.  And that lack of access can shadow them for the rest of their lives.  We all pay a price for that.  

Every dollar we invest in early childhood education can save more than seven dollars later on -- boosting graduation rates, reducing teen pregnancy, even reducing incidents of violent crime.  

And again, I'm not the first person to focus on this. Governor Bentley has made this a priority in Alabama.  Governor Snyder is making it a priority in Michigan.  Governor Tomblin has made this a priority in West Virginia.  Even in a time of tight budgets, Republicans and Democrats are focused on high-quality early childhood education.  We want to make sure that we can be an effective partner in that process.

We should be able to do that for every child, everywhere -- Democrat, Republican, blue state, red state -- it shouldn't matter.  All of us want our kids to grow up more likely to read and write and do math at grade level, to graduate high school, hold a job, and form more stable families of their own.  That will be better for every state.  That will be better for this country.  That's what high-quality early childhood education can deliver.  And I hope that you're willing to partner with us to make that happen.

Let me just close with this.  There are always going to be areas where we have some genuine disagreement, here in Washington and in your respective states.  But there are more areas where we can do a lot more cooperating than I think we've seen over the last several years.  To do that, though, this town has to get past its obsession with focusing on the next election instead of the next generation.

All of us are elected officials.  All of us are concerned about our politics, both in our own party’s as well as the other party’s.  But at some point, we've got to do some governing.  And certainly what we can't do is keep careening from manufactured crisis to manufactured crisis.  As I said in the State of the Union, the American people have worked hard and long to dig themselves out of one crisis; they don't need us creating another one.  And unfortunately, that's what we've been seeing too much out there.

The American people are out there every single day, meeting their responsibilities, giving it their all to provide for their families and their communities.  A lot of you are doing the same things in your respective states.  Well, we need that same kind of attitude here in Washington.  At the very least, the American people have a right to expect that from their representatives.  

And so I look forward to working with all of you not just to strengthen our economy for the short term, but also to reignite what has always been the central premise of America’s economic engine, and that is that we build a strong, growing, thriving middle class where if you work hard in this country, no matter who you are, what you look like, you can make it; you can succeed.  That's our goal, and I know that's the goal of all of you as well.  
So I look forward to our partnering.  And with that, what I want to do is clear out the press so we can take some questions. (Applause.)

END
11:40 A.M. EST

Extending Middle Class Tax Cuts

Rosa Parks has a Permanent Place in the U.S. Capitol

President Obama is on hand for the unveiling of the new Rosa Parks statue in the U.S. Capitol

February 27, 2013 12:00 PM EST

To mark African American History Month, as well as the 150th anniversary of the year the Emancipation Proclamation, we talked with White House Curator Bill Allman about a painting called Watch Meeting--Dec. 31st 1862--Waiting for the Hour that hangs near the Oval Office in the West Wing.

President Obama Calls for a Responsible Approach to Deficit Reduction

President Obama strongly believes we need to replace the arbitrary cuts known as the sequester with balanced deficit reduction, and today he was at a shipyard in Newport News, VA to talk about what failing to do so will mean for middle class families.

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FDA approves Shionogi's drug for painful sex in women

WASHINGTON, Feb 26 (Reuters) - U.S. health regulators said on Tuesday they have approved a drug made by Japan's Shionogi & Co to treat women experiencing pain during sexual intercourse.

The U.S. Food and Drug Administration approved the drug, Osphena, for a type of pain known as dyspareunia, which is a symptom of vulvar and vaginal atrophy due to menopause.

Dyspareunia is associated with declining levels of estrogen hormones during menopause. Osphena, known chemically as ospemifene, is a pill that acts like estrogen on vaginal tissues to make them thicker and less fragile, resulting in a reduction in pain associated with intercourse.

The drug's label includes a boxed warning, the most severe available, alerting patients to an increased risk of strokes and deep vein thrombosis. Common side effects include hot flashes, vaginal discharge, muscle spasms and excessive sweating.

(Reporting By Toni Clarke; Editing by Gerald E. McCormick)

((toni.clarke@thomsonreuters.com)(617-856-4340)(Reuters

Messaging: toni.clarke.reuters.com@reuters.net))

Keywords: SHIONOGI DRUGAPPROVAL/


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Tenet Healthcare Releases Q4 Profit

 Highlight transcript below to create clipTranscript:  Print  |  Email Go  Click text to jump within videoTue 26 Feb 13 | 08:17 AM ET Trevor Fetter, President & CEO of Tenet Healthcare, breaks down the company's quarterly numbers and weighs in on spending cuts in Washington and the outlook for the health care industry.

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Monday, May 6, 2013

Press Briefing by Press Secretary Jay Carney and Secretary of Education Arne Duncan, 2/27/2013

The White House

Office of the Press Secretary

James S. Brady Press Briefing Room

11:15 A.M. EST

MR. CARNEY:  Good afternoon, ladies and gentlemen -- good morning still.  Thank you for being here.  As you can see, we have with us today the Secretary of Education, Arne Duncan.  You saw him probably over the weekend where he discussed the impacts of sequestration, if that takes place, on areas he oversees in education.  So I brought him here today -- we’ve asked him here today to elaborate on that, take your questions on that.

As we have in the past, with Secretaries LaHood and Napolitano, I’d ask that you direct your question towards him at the top.  Then, when we’re done with that portion of the briefing, we can allow the Secretary to leave and I’ll remain to take your questions on other issues.

We do have a fairly hard stop here, because the President will be speaking on Capitol Hill around 11:50 a.m., I think -- 11:45, 11:50.  So we’ll try to move through this expeditiously.

With that, I give you Secretary Duncan.

SECRETARY DUNCAN:  Thank you.  I’ll just say a couple things and I’m happy to take any questions you might have.  I wanted to just start by sort of saying how I spent most of the past couple days. 

On Thursday -- last Thursday, the Vice President and I traveled to Connecticut to talk about the issue of gun violence, to meet with many of the families from the Sandy Hook massacre, to meet with other family members who have lost their loved ones.  And a really moving, gut-wrenching, emotional day, with just extraordinary families.

On Friday, I traveled to New York City and went to an amazing high school -- you have to take a ferry to get there -- the Harbor School.  And it’s just a unique curriculum in which young people -- this idea of college and careers, rather than one versus the other.  Marine biology, restoration -- just amazing work that they’re doing.  And I think the kind of school we’d like to see be a model for the country.

And then, on Monday, I was with Alma Powell and America’s Promise, talking about the increase in high school graduation rates.  And clearly, we have a long, long way to go.  It’s still not high enough.  But to see the high school graduation rate going up, to see dropout rates going down -- a lot less children going to dropout factories.  What’s driving the increase in graduation rates is increases amongst the Hispanic and the African American population.  Really encouraging trends.  A long way to go.  Not declaring success. 

But that’s the kind of work I like to be talking to you guys about.  Those are the kinds of meaty, real substantive issues that I think we as a nation should be focused on.  But obviously that’s not why I’m here today.  I’m here to talk about sequester.  And what I will try and do is sort of walk quickly through the impact on our cradle-to-career agenda of sequester, and then open it up for any questions.

First, on the early childhood side -- and, as you know, we want to invest a lot more there, and we keep saying that’s the best investment we can make as a country if we’re serious about closing the opportunity gap -- getting our babies ready to enter kindergarten, to be successful.  On the early childhood side, a cut of about $400 million.  What that means concretely is as many as 70,000 children would lose access to Head Start slots this fall, and as many as 14,000 teachers who teach those children would lose those jobs.  And that money does not come from our department, it obviously comes from HHS.  But this is just trying to talk about what impacts kids.

On the K-12 side, as you guys know, the vast majority of our funding goes to two different situations.  And we always are funding at the federal level.  We’re the minority investor.  We’re usually 8 to 10 percent of school districts’ budgets; 80 to 90 percent is local.  But what we do is we help support the nation’s most vulnerable children.  So the two biggest pots there are Title I money, which is money for poor children -- children who live below the poverty line.  That total pot is $14.5 billion.  And then money for students with special needs  -- special education -- and that total pot is about $12 billion.

What these cuts would mean on Title I is $725 million would be cut, and as many as 10,000 teachers could lose their jobs -- teachers and teachers’ aides.  And on the special ed side, that’s $600 million, and about 7,200 teachers would lose their jobs.  And I’m happy to get into this in Q&A.  People say, what if you had more discretion?  What if you had more choice?  Those two pots together -- about $25 billion -- they dwarf anything else we do.  So the only choice I could make would be to hurt fewer poor children and help more special needs kids, or do the opposite.  There’s a no-win proposition there.  There’s no good answer.  There’s nothing I could do to come up with a smarter way to do this.  You’re hurting poor kids or hurting kids with special needs one way -- either way you go.

On the higher education side -- a cut of about $86 million.  And, again, the President has challenged us to try and lead the world in college graduation rates.  That cut would mean for the fall as many as 70,000 students would lose access to grants and to work-study opportunities.  And we know -- and I’m sure many of you are paying tuition -- college is very expensive today.  It’s something else we’re working on.  And if young people lose access to grants and lose access to work-study, my fear -- I don’t know any numbers yet -- but my fear is many of them would not be able to enroll in college, would not be able to go back.  And, again, do we want a less-educated workforce?  Do we want fewer people going to college in this country, or do we want more?  So real clear choices there.

All of those cuts I walked through -- the early childhood piece, the K-12 piece, the higher ed piece -- those are all cuts that would be hitting in the fall.  So there’s lots of churn now, lots of -- over the next month or two you’ll see lots of pink slips go out.  That starting is still really early on.  It’s usually March and April where that happens, but these are all things that would happen for the fall.

The one set of cuts that I think is very important that you understand that hits now, that hits March 1st, are those -- it’s what called for us “impact aid.”  And this is a special funding that we do for school districts that don’t have a large property tax base.  Again, most funding in this nation comes because of those local property tax payers.  There are two populations that don’t have a large property tax base.  One are around military bases, obviously.  And the other is on Native American reservations.  And so, again, these are clearly both children of military families, children from the Native American community who we need to be doing more for and not less.  And the cuts to those schools in those districts come to about $60 million; and those are cuts, to be very clear, that those districts have to make now before the end of the school year.  And obviously, I was a superintendent for seven and a half years -- all of this is really difficult.  I’ll get into that later. 

But if I was a superintendent in one of those school districts and had to make these cuts right now before the end of the school year -- what choice, what options, what good chances are we giving them?  I don’t know what they’d do.  I think the only thing they can probably do is to cut days out of the school year.  And I’m going to do a call with these superintendents tomorrow to try and get a sense for how they handle it.  But there’s no other way to reduce your costs over the next two to three months that I’m aware of.

Just to give you a couple of concrete examples:  Killeen in Texas -- Killeen Independent School District, home of Fort Hood -- 2,300 federally connected children; 18,000 military dependents -- they will lose about $2.6 million in impact aid funds.  Two more quick examples:  Gallup-McKinley County Public Schools in New Mexico -- 7,500 federally connected children, including 6,700 who live on Indian lands -- they will lose nearly $2 million in impact aid.  And the impact aid for them makes up 35 percent of the district’s total budget.  Again, normally, we’re the minority investor -- 8 to 10 percent.  In this district, we’re 35 percent.  So it’s not just the dollar amount; the percent of that cut is huge. 

The final one I’ll give you -- and we can give you lots of information if you want -- the Chinle Unified School District in Arizona, the cut would be about $1.2 million.  Impact aid funds make up about 61 percent of that district’s total current expenditures.

So while we're having this conversation about fewer teachers, fewer school days, less opportunities to go to Head Start, less ability to pay for college -- other nations, this is not how they’re looking to improve their education system.  This is not the conversation that's happening with our competitors in Singapore, in South Korea, in China, in India.

As the President talked about in the State of the Union, we actually want to invest much more in education.  We want a lot more children having a chance to have a high quality early childhood experience.  We want to make sure that we continue to drive up graduation rates, and make sure high school is relevant, and drive down dropout rates, and make sure all our young people are college and career ready.

Our “North Star” is the President’s 2020 goal to lead the world in college graduation rates.  And to do that, we need to make sure folks have access and that college is affordable.  So for us to be thinking about taking steps backwards in all of these areas because folks in Washington can't get their act together, and a level of dysfunction in Congress that it’s just  like unimaginable to me, I can't tell you how troubling that is to me and, frankly, how angry it makes me feel. 

As a nation, we're starting -- the economy is coming back a little bit.  In my world, graduation rates are up a little bit.  But again, we're nowhere near where we need to be.  We need to be building upon that momentum, not taking a step backwards.

And to do something that would have such an impact for children, for families, for schools, for communities, and ultimately for the economy, just makes no sense whatsoever.  And I just think the American people deserve something better.  Our nation’s children, students, deserve something better.  And I just desperately hope Congress can find a way to find some common ground to compromise.

I don't think people ever came to Washington with the idea of inflicting harm on their constituents, but that's exactly what might happen here.  And I just hope -- I know we're running out of time.  I'm always an optimist.  I just hope they can come together and figure out a way to do the right thing, and do it with a sense of urgency.

I'll stop there and take any questions you might have.

Q    Thank you.  Secretary Duncan, the impact aid cuts that you talked about, are those cuts that can be reversed if the sequester is resolved maybe not by Friday but at a later date?

SECRETARY DUNCAN:  I think we would be able to restore that money.  I should confirm that for you -- yes.  But again, they have to start making those cuts.  They don't have months to -- like these other -- the other cuts we're talking about are for the fall, so folks can think these are cuts -- this money has to come out of their budget over the next -- in the next three months.  So I think they will start making those cuts.  In fact, I know they’re going to start making those cuts as of next week.

MR. CARNEY:  Major.

Q    Did the school districts suffering the impact aid -- loss of aid -- convey to you that the only real option they have is to eliminate school days?  Have you had conversations with them specifically about that?

SECRETARY DUNCAN:  I have not.  I'm actually doing a conference call with all of them tomorrow, so I can come back with further information on that.  I'm just putting on my superintendent’s hat, and with whatever -- three months left in the school year and you have to take out a big part of your budget, most school districts, 80 percent of their budget is people.  And again, as you guys all know this, it’s not like we're coming at the sequester coming from flush times.  School districts have been hit really, really hard these past couple of years.

We saved about 300,000 jobs through the Recovery Act, which we were very, very proud to do, obviously with the President’s leadership and Congress’s support.  But as a nation, we'd lost about 300,000 teacher jobs.  That's what we netted out. 

So with a couple months to go, all you can do is, I think, cut salaries and cut days out.  Maybe there are more -- maybe there’s a more creative idea.  I’ll have a much better sense tomorrow.  But I can’t envision how you take out that percentage of your budget right now.

Q    So your sense is that this is one of the cuts that could be noticed almost immediately.

SECRETARY DUNCAN:  It will be noticed immediately.  The others are more for the fall.  This one is going to play out over the next two to three months.  And let me be clear -- the other cuts impact children and impact schools for the fall, but again, every school district, every superintendent worth their salt, every school board, they’re making their budgets now in the spring for the fall.  So the layoff notices are beginning to roll, but there will be a lot more of that in March and April.  Class sizes, afterschool programs, the amount of instability that this is being injected to already a very, very difficult job.  And the one thing I always wanted as a superintendent, I just wanted to have predictability.  I just wanted to know what my assets were and let me figure out how to do that. 

But we’re going to force these leaders -- they have no choice but to start cutting people, cutting afterschool programs, cutting days out of the school year.  They have to start to put all those plans into effect now.  They’re planning for the fall.  It’s not like they can wait until August 31st to plan for the opening of school.  That’s not how the world works. 

And so it’s important for you guys to understand the magnitude of the uncertainty that Congress has now put upon educational leaders at every level -- early childhood, K-12, higher ed -- around the country.

MR. CARNEY:  Ed.

Q    Sir, can you just talk about -- I get the big picture.  You’re saying the magnitude of it, it’s a series of bad choices.  But the Republicans continue to claim on the Hill that -- you’ve heard this -- that you have legal flexibility, individual Secretaries, different accounts -- PPAs or broader budget accounts, that you could move money around.  Have you consulted with your lawyers at the Education Department?  Can you flatly say that’s not true?

SECRETARY DUNCAN:  Well, first of all, it’s not true.  Second of all, again, I’m trying to be very clear:  If I had that flexibility -- you guys help me, I’m not the smartest guy in the room -- but $25 billion, the huge share of our money are to two funding sources -- children who live below the poverty line and children who have special needs.  And, obviously -- so if you want me to shift, I can shift one way -- if I had the flexibility, I could shift one way or the other.  There’s no win there.  There’s no upside there.  There’s nowhere to go. 

And, obviously, these kids aren’t -- the money may go away, all these kids are coming back to school this fall.  These kids aren’t going -- we’re not going to have less children in poverty.  We’re not going to have less children with special needs.  And so to act like there’s some magical thing that I could do or a superintendent or a principal could do.  Kids are going to get hurt.  Kids are going to get hurt.  That’s just the reality.

MR. CARNEY:  Peter.

Q    Secretary Duncan, if you can help explain -- for years in Chicago and now here in Washington D.C. of overseeing the education systems, you know how to communicate to young people.  There are a lot of young people and their families around this country that are confused by the fact that the President as well as the congressional leaders are not going to meet for the first time on the issue of sequester until Friday, after it’s already gone into effect.  In your classrooms around the country, if there’s a fight between sides, they meet in the middle of the classroom and they come to some resolution on this.  How do you explain to them the fact there is no conversation taking place face to face between these two sides until after the cuts that damage them so badly take effect?

SECRETARY DUNCAN:  Well, my sense is actually there’s been lots of conversations back and forth -- principals, staff -- for a long time.  I think the President has laid out a plan.  And, as you guys, again, know better than I, that plan takes on some of his own interests in a pretty significant way.  And Congress I think is like parents -- you have to compromise.  You have to find common ground.  And if folks just refuse to, by definition -- any compromise, no one is going to be perfectly happy.  I negotiated union contracts -- there’s no perfect contract.  No one is ever entirely happy, but you have to come to the middle. 

And my sense, my strong sense is there’s been numerous, numerous ongoing conversations at multiple levels, but at the end of the day, if there’s this one way to do it and there’s not a sense that everybody has got to take on their own base a little bit to find a common ground and make some tough choices, I don’t see how this gets done. 

Again, what’s so infuriating to me is this is not rocket science.  We should be spending our time and energy thinking about how we reduce gun violence.  We’re losing a lot of children -- a lot of children back home in Chicago due to gun violence.  I want Congress thinking about those issues.  I want them thinking about how we increase graduation rates.  They could get this done in the next hour.  They could have gotten in done three months ago.  Intellectually, this is not hard.  It’s just finding the courage.  It takes a little courage to go to the middle, to compromise, and to have both sides take on some of their base, which I think is the only way you move this forward.

Q    Because there’s only so much political capital that any member of any administration has right now, do you believe that the sequester -- and if this does go through and the capital being spent to help find resolution for that -- is having a detrimental effect on your ability to find resolutions in terms of gun control and other issues that affect kids in your districts?

SECRETARY DUNCAN:  I think there are so many bigger -- take on reducing gun violence; take on making sure our 3- and 4-year-olds are entering kindergarten ready to be successful; take on a dropout rate that is going down but is still wildly too high; take on that we used to lead the world in college graduation rates and today we’re like 11th, and then we wonder why jobs are going to other places.  All of these are hard, meaty, complex, substantive issues.  That’s where I’d like our collective brainpower, political will -- that’s where I’d like all of us thinking about all of these pieces.

And, again, for me it’s not just about education -- we’re fighting for our country here.  We have to educate our way to a better economy.  That’s the only way we’re going to go there.  And so the fact that we are not spending time on those issues, the fact that I’m here talking to you about this silly stuff, and the fact that we may actually take a step backwards educationally at every level -- early childhood, K-12, higher ed -- is mindboggling to me.  I mean, it’s inconceivable to me that this might actually happen.

MR. CARNEY:  Zach.

Q    Secretary Duncan, you mentioned that school districts are already issuing pink slips to teachers.  Can you tell us where that’s happening?

SECRETARY DUNCAN:  It’s still early.  As most haven’t happened yet, it really has to do with union notification, so most of that stuff will start to happen over the course of March and April.  There are a couple districts -- one I know of in West Virginia that has actually already issued notices, but it’s just because they have an earlier notification date.  And to be clear, the vast majority of this is going to happen April, May, -- sorry, March and April, some into May.  And it just sort of has to do with each local district, what their notification system is.

But the numbers -- we think the aggregate number of potential layoffs is as many -- again, this is early childhood and K-12 -- we think it’s as many as 40,000 people will lose jobs.  And, again, the only other way you don’t do that, again, I think is you would reduce school days.  You could go to three-day weeks or four.  Again, you have people and time -- those are your only variable factors, and unfortunately, everything else is gone.  So, still early, but you’ll see, unfortunately, across the country a steady drumbeat of these notifications going out, which folks have a legal obligation to do.  And the exception to that, again, would be these impact aid districts where they’re going to start to do something next week.

Q    But you’re confident that teachers are already getting pink slips, as you said?

SECRETARY DUNCAN:  Yes.  I mean, I know of -- yes, there’s a district where it’s happened.  But again, it’s just because they have an earlier union notification than most -- so Kanawha County in West Virginia.  But the vast majority of them will be rolling out over the next two months.

MR. CARNEY:  Chris, and we’ll let the Secretary go.

Q    Mr. Secretary --

SECRETARY DUNCAN:  And then, sorry, quickly -- in that district, to be clear, it’s Title I teachers and Head Start teachers.  So it’s these funding sources that are going to get cut.  Whether it’s all sequester related, I don’t know.  But these are teachers who are getting pink slips now.

Q    Mr. Secretary, the issue of bullying has gotten attention of the administration in the past few years.  I’m just wondering if you could talk about how the sequester would impact those efforts.

SECRETARY DUNCAN:  So, again, as a broader -- I just think we need a lot more time, we need more afterschool programs, we need more extracurriculars, we need more resources.  I mean, it’s so ironic -- we’re not even having that conversation today, it’s all about going in the opposite direction.  So creating safe communities, creating climates in which children live free of fear, thinking about what we’re doing in the curriculum, afterschool clubs -- all the things we should be doing whether it’s around reducing bullying, or whether it’s around the arts or robotics, or whatever it might be, we’re not even having that conversation, which is, again, crazy to me.  But that’s not the world that most of these folks are living in right now.  So there’s no upside.  There’s no upside.

MR. CARNEY:  Thank you very much, Mr. Secretary.  I appreciate it.

SECRETARY DUNCAN:  Thank you.

MR. CARNEY:  We’ve got to get these guys out to hear the President speak.

SECRETARY DUNCAN:  Thanks, guys.

MR. CARNEY:  With that, we’ve got a little time for some more questions.  I’ll go back to the AP -- Julie.

Q    Thank you.  Is the fact that this meeting with lawmakers and the President -- the fact that it’s happening on Friday basically a concession that the sequester is going to take effect?

MR. CARNEY:  I think you are aware that the President spoke with leaders last week.  I think he may have had a conversation with them up on the Hill earlier -- just a little while ago, prior to the President’s remarks at the Rose Parks statue dedication -- a brief one.

Q    But the same ones that he’s talking to on Friday?   

MR. CARNEY:  I believe that’s true.  This is not a meeting, but he is obviously up there with those leaders and it’s my understanding he had a brief conversation with them in anticipation of the meeting Friday.  The President did invite the four leaders to the White House for Friday, where he hopes that they will have a constructive discussion about doing something to prevent sequestration from causing the kinds of impacts that Secretary Duncan just described to you.

The fact of the matter is, as I think Secretary Duncan said, and I and others have said, compromise here in Washington can usually be measured by a willingness of one leader to put forward proposals that demonstrate tough choices by his side, or her side. 

What we have not seen from the Republicans is anything like the willingness to compromise inherent in the proposals that the President has put forward.  We’ve talked at length about the President’s offer to Speaker Boehner and how it includes not just additional revenues through tax reform -- revenues that are achieved in the same way Speaker Boehner said he would achieve them -- but spending cuts through entitlement reform, including the so-called superlative CPI and other measures.  That demonstrates tough choices.  It demonstrates a willingness to compromise. 

What we haven’t seen, when we hear Republican leaders adamantly refuse to consider revenue as part of deficit reduction, is anything like that same spirit of compromise or seriousness of purpose that I think you’ve seen demonstrated by the President and Democratic leaders.

Q    But I just want to be clear, we’re now talking about ways to prevent the sequester from having sort of the broad effects that we’re talking about through Secretary Duncan and others, not talking about --

MR. CARNEY:  We’re talking about how we buy down the --

Q    --  ways to prevent it from going into effect at all, though?

MR. CARNEY:  Well, obviously, the Senate will vote on proposals, or at least one proposal, that would eliminate -- or rather postpone the deadline for the sequester -- a balanced proposal that the President supports; a balanced proposal that a majority of the Senate will support.  Unfortunately, a proposal that, while earning a majority vote, is likely to be blocked by Republican leaders, who will thereby be making the choice that we should let the sequester go into effect rather than ask that some special interest tax breaks be eliminated; that we should have these kids who are affected by the program Secretary Duncan discussed, the ones that -- military family kids and children on Native American reservations -- that they will be suffering because of this decision that Republicans will make, a minority in the Senate -- a decision they will make to block a majority-supported resolution that would avert the sequester in a balanced way.  Hopefully, that won’t come to pass, but certainly based on what we’ve seen from Republican leaders thus far, that is a more likely outcome.

But as I said yesterday, we remain hopeful that at some point, hopefully soon, that Republicans will understand the need to compromise here, and that compromise has balance at its essence.  That’s what the American people want.  That’s what Republicans -- a majority of Republicans in the country say they want.  So the President looks forward to a conversation, when he has this meeting, that is constructive and that includes suggestions by leaders about how we can move forward towards the kind of balanced deficit reduction that this is all about. 

When the sequester was passed into law with overwhelming votes by Republicans, back in the summer of 2011, the idea was that it would never become policy because Congress would be forced and compelled to compromise, to come up with $1.2 trillion in additional deficit reduction -- not spending cuts alone -- in additional deficit reduction.  And from the day that passed, the President has been talking about the need for balance in our deficit reduction.  That has been his approach all along.  It has been an approach that he discussed about in the campaign.  It is an approach that the American people support.  And it’s the best economic approach for all the reasons that I think you heard Secretary Duncan speak about.

Q    I was curious, earlier this week, in advance of these cuts, ICE announced that it released a number of detainees across the country to get ready for sequestration.  Was the White House aware of this release?  And are you confident that not one of these detainees is a threat to his or her community?

MR. CARNEY:  This was a decision made by career officials at ICE, without any input from the White House, as a result of fiscal uncertainty over the continuing resolution, as well as possible sequester.  As ICE made clear yesterday, the agency released these low-risk, non-criminal detainees under a less expensive form of monitoring to ensure detention levels stayed within ICE’s overall budget.  All of these individuals remain in removal proceedings.  Priority for detention remains on serious criminal offenders and other individuals who pose a significant threat to public safety.  This step affected a few hundred detainees, as you know, out of the over 30,000 currently in ICE detention. 

I think it’s worth noting what Secretary Napolitano said the other day, which is that we have made enormous progress in securing our border.  We have doubled the presence of border security agents along the Southwest border since 2004, and many, including Republicans in Congress, have noted the progress that has been made.

Much as Secretary Duncan discussed here, instead of talking about taking a step backward in our efforts to improve education in America -- since we have made progress in those efforts -- we should be talking about moving forward.  And when it comes to border security, I think Secretary Napolitano made clear that we should be building on the progress we've made, but unfortunately, we're talking about sequestration and --

Q    But she didn’t mention that this might be necessary as part of sequestration.

MR. CARNEY:  I think she talked very explicitly about the direct --

Q    About releasing detainees?

MR. CARNEY:  Well, about the direct impact that the budget conflicts that we have here with Congress and sequestration, as well as the upcoming continuing resolution expiration, that they have on her budget and other budgets, and the decisions that have to be made because of that.  But I would refer you for details on these specific decisions to ICE, because this was a decision made by career officials at ICE.

Q    Right, and you said without --

MR. CARNEY:  Without any input from the White House.

Q    From the White House.

MR. CARNEY:  That's correct.

Q    But let me just ask you -- as you mentioned and ICE mentioned, it says in their statement that many of these detainees are in the process of removal proceedings.  How are you supposed to bring them back in if they’ve been released?

MR. CARNEY:  Well, no, I think you're misunderstanding what ICE has said.  They continue in the program under a less expensive form of monitoring to ensure that detention levels, actual detentions, stay within ICE’s overall budget.  But they remain in the process for deportation.

Q    But it’s possible that some of them might not be brought back in?

MR. CARNEY:  Well, again, I would refer you to ICE.  I don't think this is a conversation that I can help you with in the specifics.

I think I said Steve next.

Q    Jay, are you expecting any movement at this Friday meeting?

MR. CARNEY:  Well, we hope that Republican leaders will begin to respond to the will of the American people, that they will begin to respond to some of the concerns expressed by some members of Congress in the Republican Party about the folly that allowing sequestration go into effect would represent. 

Whether it’s in Norfolk, Virginia, or Newport News, Virginia, or in some of the districts that Secretary Duncan discussed, or on the Southwest border, the impacts of sequester will be onerous and severe.  That was, after all, the purpose of designing this piece of legislation, because the sheer nature of sequester, the fact that it was so onerous, or supposed to be, for both sides was supposed to compel Congress to come together and compromise.

Q    But you're not sensing any movement?

MR. CARNEY:  Well, I think that we remain hopeful that congressional leaders, Republicans will understand the need to come together and support balance.  Again, the choice that Republicans would be making if they don't agree to that is a choice between up to 750,000 people losing their jobs, on the one hand, and asking that some special interest tax loopholes be closed on the other.  I don't think that's a choice that seems like a hard one to most Americans.  Unfortunately, it seems like a difficult one for Republicans.

Q    And Jay, secondly, is the United States preparing to offer direct military assistance to the Syrian rebels, or any sort of assistance at all, as Secretary Kerry prepares to meet with the Syrian opposition?

MR. CARNEY:  I can tell you that we are constantly reviewing the nature of the assistance we provide to both the Syrian people in the form of humanitarian assistance and to the Syrian opposition in the form of non-lethal assistance, which, as you know, we have provided.  President Obama is committed to helping accelerate a political transition in Syria to a democratic and inclusive post-Assad government that protects the rights of all its citizens. 

We are focusing our efforts on helping the opposition become stronger, more cohesive, and more organized.  As part of this effort, we will continue to analyze every feasible option that would accelerate a political transition to a post-Assad Syria.

Secretary Kerry, as you know, will be participating in a Friends of the Syrian People ministerial meeting in Rome tomorrow, and he will discuss with the Syrian Opposition Coalition leaders how the United States and our international partners can do more to help the Syrian people achieve this transition.  Vice President Biden conveyed this to Coalition President al-Khatib when they spoke earlier this week. 

We will continue to provide assistance to the Syrian people, to the Syrian opposition.  We will continue to increase our assistance in the effort to bring about a post-Assad Syria and a better path forward for the Syrian people.

Q    Jay, when did the President reach out to the congressional leaders to request this meeting?

MR. CARNEY:  I believe yesterday or the day before.  I'm not sure.  Probably yesterday.

Q    And given that McConnell today has put out a statement looking forward to the meeting, saying that the one thing Americans simply will not accept is another tax increase to replace spending reductions we already agreed to, just let me ask you:  Is there any chance of an agreement with the Republicans if they stick to this insistence of absolutely no tax increases?  Is there any chance of an agreement on those terms?

MR. CARNEY:  There is no alternative in the President's mind to balance, because what you are asking and what Senator McConnell is saying is that senior citizens, middle-class Americans, parents trying to send their kids to college, parents trying to care for disabled children should bear all the burden of continued deficit reduction while the wealthiest individuals and large corporations who enjoy tax breaks that nobody else gets are held harmless.  That is an unacceptable choice. 

And where Senator McConnell I think has it wrong is his analysis of what the American people want -- because poll after poll after poll make clear that a vast majority of the American people believe that we need to go about this in a balanced way; that everybody ought to pay their fair share, everybody ought to carry a portion of the burden so that no sector of society is unduly burdened by the effort, which should be an effort that we engage in together to reduce our deficit in a responsible way that allows the economy to grow and create jobs.  I think the data on this is overwhelming, so perhaps Senator McConnell might want to check it out.

Q    So just to be perfectly clear, unless the Republicans compromise on taxes, there is no undoing these cuts?

MR. CARNEY:  You're right that it is absolutely clear that we cannot compromise with Republicans if Republicans refuse to compromise.  There is no question.  We remain hopeful, however, that not because the President says it should be this way or that Democratic leaders say it should be this way, but because the American people are insisting that it be this way -- the Republicans come around to the notion that further deficit reduction can and must be achieved in a balanced way.  We've done that thus far.  It hasn't been pretty.  It's often been harrowing, unnecessarily so, through a series of manufactured crises.

But the fact of the matter is the President has signed into law $2.5 trillion in deficit reduction.  More than two-thirds of that has come in spending cuts.  We have now the lowest level of discretionary spending, nondefense discretionary spending, in our budget as we've seen since Dwight Eisenhower was President. 

The President has put forward -- President Obama has put forward in an offer to Speaker Boehner additional deficit reduction that would bring us beyond the goal of $4 trillion that includes further balance, but also has that balance tilted significantly in favor of spending cuts.  His proposal also includes tough choices for Democrats on the issue of entitlement savings. 

That's the kind of compromise the American people expect their leaders to embrace -- not the “my way or the highway,” “no way am I changing my position even though the American people are widely against it.”  That’s on the approach that we think people expect.

Last question -- Major.

Q    Can you just explain to the American public what might seem to them a bizarre scheduling sequence here?  That the meeting occurs after the sequester begins.  It’s not before.

MR. CARNEY:  The sequester begins I believe midnight on the 1st of March.  So --

Q    Right, but it happens after.  

MR. CARNEY:  Well, actually it happens before, because it happens midnight --

Q    But the meeting happens after these things begin.

MR. CARNEY:  No.  It begins midnight, March 1st -- so the meeting happens before. 

Q    It doesn't -- you’re talking about 11:59 p.m. Friday night?

Q    The Hill says it happens at 12:01 --

Q    Thursday going into Friday.

MR. CARNEY:  My understanding is it happens at midnight on Friday, 11:59 p.m. 

Q    Okay, it's very close, if it's not before. 

MR. CARNEY:  The President spoke with leaders last week.  And there have been discussions with --

Q    And it sounds like this is not a negotiation.  You're asking Republicans to come here to surrender.

MR. CARNEY:  No.  We're asking Republicans to compromise in the same way that the President has compromised, Major.  As I just said, what represents compromise by Democrats?  A willingness to go along with spending cuts that they don't necessarily want to see, a willingness to go along with entitlement reforms that they don't necessarily prefer?  I think the answer you would have to that is yes.  I think that's the answer that we all recognize here is a reality in Washington.  That's what the President has put forward.  He has put forward budget deficit reduction proposals that represent significantly greater deficit reduction through spending cuts and entitlement savings than through revenues.  But he insists on balance.

Q    Why not today instead of Friday?

MR. CARNEY:  First of all, the President will be meeting with them Friday.  He spoke with them last week.  He spoke with them today on Capitol Hill.  The Senate has still yet to vote -- hopefully, will vote tomorrow on a proposal that achieves the kind of postponement of the sequester deadline that would allow Congress to move forward on balanced deficit reduction in a sensible, no drama fashion that would avoid these unnecessary impacts across the economy and the country.  And hopefully, Republicans will change their minds about filibustering that, they will allow a majority of the Senate to pass a bill that would achieve that delay in a balanced way, move it to the House and perhaps -- again, hope springs eternal -- the Speaker of the House would allow that to come to a vote. 

Because I think there's a very good chance that there's a majority in the House of Representatives that would support a simple proposition, which is that we can postpone the deadline for the sequester in a balanced way just as Congress did in bipartisan fashion just two months ago.  Why not do that, and then let Congress go about the business of working on further deficit reduction?  We certainly hope they do. 

Thanks, guys.

Q    Just to be clear, how long was the meeting today?

MR. CARNEY:  It was a very brief meeting.  They just talked behind -- before the event.

Q    It was only seven minutes from when he got there to --

MR. CARNEY:  Again, it was a very -- a short meeting.  They were all together and, as you would expect, they had a short discussion.

Q    Will the administration reach something on the Prop 8 case?

MR. CARNEY:  I don't have anything for you on that.

END
11:53 A.M. EST

Extending Middle Class Tax Cuts

Rosa Parks has a Permanent Place in the U.S. Capitol

President Obama is on hand for the unveiling of the new Rosa Parks statue in the U.S. Capitol

February 27, 2013 12:00 PM EST

To mark African American History Month, as well as the 150th anniversary of the year the Emancipation Proclamation, we talked with White House Curator Bill Allman about a painting called Watch Meeting--Dec. 31st 1862--Waiting for the Hour that hangs near the Oval Office in the West Wing.

President Obama Calls for a Responsible Approach to Deficit Reduction

President Obama strongly believes we need to replace the arbitrary cuts known as the sequester with balanced deficit reduction, and today he was at a shipyard in Newport News, VA to talk about what failing to do so will mean for middle class families.

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Obamacare Is Raising Healthcare Costs, Not Lowering Them

No one really knows how much Obamacare is going to cost the American government or the American people. All we really know for certain, something that a number of public and private econometric studies have backed up, is that it will be more expensive than the president led us to believe it would be.

There are efforts underway to establish the true costs, or at least to help the American people understand what the out-of-pockets expense will be for them. In early February the House Ways and Means Committee started a website, Obamacare Burden Tracker  as a real-time resource to "help the public keep track of all of the new government mandates, rules, and red tape" resulting from the new healthcare law.

They're not the only ones. A group called SHOUTAmerica, a nonprofit group founded to "educate young Americans about healthcare and serve as a resource so that all are better equipped to navigate the system and the challenges it faces" has created Young Americans for Affordable Healthcare, a web-based group intended to help younger workers understand what the costs of Obamacare are to them.

[See a collection of political cartoons on healthcare.]

The principle feature of the Young Americans site is a calculator allowing users to plug in a few simple numbers like age and zip code and come up with an estimated change in their health insurance costs for 2014. The data it uses comes from the well-respected firm Oliver Wyman, a leading international management consulting firm that is part of Marsh and McLennan.

The numbers take into into account the federal subsidies available to purchase health insurance coverage based upon income, Medicaid eligibility, taxes and fees, new age rating rules and other insurance market reforms, essential health benefits, the transitional reinsurance program, and other factors that will have an impact on premiums under the terms of the Patient Protection and Affordable Care Act.

While the calculator uses national averages, meaning actual results may be slightly different from those shown, it nonetheless is a useful tool for developing a clear understanding of just what Obamacare will do to the costs of insurance for those, especially young workers, who are not part of a group plan and are buying insurance individually. And the picture is not a pretty one.

[Read the U.S. News Debate: Should Congress Repeal the Affordable Care Act?]

The idea behind Obamacare was that it was supposed to bend the healthcare cost curve downward while allowing people to keep the doctors and insurance they already had. It was sold to the American people as a salve for rising costs that would help those who did not have insurance while inconveniencing hardly at all those who did. The reality as we already know it to be is starkly different. Costs are projected to go up, the number of people who have already lost their insurance has risen precipitously, and states are already beginning to warn they are facing a shortage of qualified doctors and other medical personnel and may not be able to keep up with future demand.

To put it simply, the American people were sold a pig in a poke. If "repeal and replace" is no longer an option—and let us hope that is not at all the case—then Congress must take the lead on reforming the mess as it considers how to fund the implementation of the new law over the next two years.


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Fed Chairman: Unemployment To Remain Above 6 Percent For Three More Years

Unemployment is likely to remain above 6 percent for at least three more years, Federal Reserve Chairman Ben Bernanke said during testimony in front of the House Financial Services Committee today. Responding to questions from Rep. Michael Fitzpatrick (R-PA), Bernanke said a “reasonable guess” for when unemployment will finally come down to 6 percent is 2016:

FITZPATRICK: The Fed has indicated it believes long-term unemployment rates will settle at around 5.2 percent or 6 percent.

BERNANKE: That’s our best guess.

FITZPATRICK: An understanding I heard your testimony earlier about predicting the future. When would you say we might get to around 6 percent? And also, the American people, they believe natural unemployment is actually much lower than that given what we experienced in the 1990s. Maybe your suggestion as to how we address that expectation.

BERNANKE: Again, it’s hard to predict. But a reasonable guess for 6 percent would be around 2016.

Watch it:

That unemployment remains high and will continue to do so for at least three more years would seem yet another argument against sequestration, the automatic budget cuts that will begin taking effect Friday. Indeed, Bernanke was outspoken in his opposition to further fiscal contraction during his testimony, repeatedly saying the budget cuts could damage the economic recovery and that the Federal Reserve, which has been acting to stimulate the economy through monetary means for months, could use help from Congress.

Instead of offering that help, Congress remains focused on deficit reduction, even as evidence mounts that the only spending problem America has right now is that the government isn’t spending enough. But Republicans have repeatedly blocked efforts to further stimulate the economy, choosing instead to push spending cuts that have held back the recovery. The looming round of cuts will only make that worse: the Congressional Budget Office projects that sequestration will knock 0.6 percentage point off economic growth while resulting in the loss of more than 700,000 jobs.


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