ADMINISTRATION EFFORTS ON LINE–BY–LINE BUDGET REVIEW HEARING BEFORE THE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS FIRST SESSION OCTOBER 5, 2011 Serial No. 112–92 ( Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov U.S. GOVERNMENT PRINTING OFFICE 81–404 PDF WASHINGTON : 2013 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Aug 31 2005 14:15 Jul 16, 2013 Jkt 037690 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 F:\112-09~1\112-92~1 WAYNE COMMITTEE ON ENERGY AND COMMERCE FRED UPTON, Michigan Chairman JOE BARTON, Texas HENRY A. WAXMAN, California Chairman Emeritus Ranking Member CLIFF STEARNS, Florida JOHN D. DINGELL, Michigan ED WHITFIELD, Kentucky Chairman Emeritus JOHN SHIMKUS, Illinois EDWARD J. MARKEY, Massachusetts JOSEPH R. PITTS, Pennsylvania EDOLPHUS TOWNS, New York MARY BONO MACK, California FRANK PALLONE, JR., New Jersey GREG WALDEN, Oregon BOBBY L. RUSH, Illinois LEE TERRY, Nebraska ANNA G. ESHOO, California MIKE ROGERS, Michigan ELIOT L. ENGEL, New York SUE WILKINS MYRICK, North Carolina GENE GREEN, Texas Vice Chairman DIANA DEGETTE, Colorado JOHN SULLIVAN, Oklahoma LOIS CAPPS, California TIM MURPHY, Pennsylvania MICHAEL F. DOYLE, Pennsylvania MICHAEL C. BURGESS, Texas JANICE D. SCHAKOWSKY, Illinois MARSHA BLACKBURN, Tennessee CHARLES A. GONZALEZ, Texas BRIAN P. BILBRAY, California JAY INSLEE, Washington CHARLES F. BASS, New Hampshire TAMMY BALDWIN, Wisconsin PHIL GINGREY, Georgia MIKE ROSS, Arkansas STEVE SCALISE, Louisiana JIM MATHESON, Utah ROBERT E. LATTA, Ohio G.K. BUTTERFIELD, North Carolina CATHY MCMORRIS RODGERS, Washington JOHN BARROW, Georgia GREGG HARPER, Mississippi DORIS O. MATSUI, California LEONARD LANCE, New Jersey DONNA M. CHRISTENSEN, Virgin Islands BILL CASSIDY, Louisiana KATHY CASTOR, Florida BRETT GUTHRIE, Kentucky PETE OLSON, Texas DAVID B. MCKINLEY, West Virginia CORY GARDNER, Colorado MIKE POMPEO, Kansas ADAM KINZINGER, Illinois H. MORGAN GRIFFITH, Virginia SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS CLIFF STEARNS, Florida Chairman LEE TERRY, Nebraska DIANA DEGETTE, Colorado SUE WILKINS MYRICK, North Carolina Ranking Member JOHN SULLIVAN, Oklahoma JANICE D. SCHAKOWSKY, Illinois TIM MURPHY, Pennsylvania MIKE ROSS, Arkansas MICHAEL C. BURGESS, Texas KATHY CASTOR, Florida MARSHA BLACKBURN, Tennessee EDWARD J. MARKEY, Massachusetts BRIAN P. BILBRAY, California GENE GREEN, Texas PHIL GINGREY, Georgia DONNA M. CHRISTENSEN, Virgin Islands STEVE SCALISE, Louisiana JOHN D. DINGELL, Michigan CORY GARDNER, Colorado HENRY A. WAXMAN, California (ex officio) H. MORGAN GRIFFITH, Virginia JOE BARTON, Texas FRED UPTON, Michigan (ex officio) (II) VerDate Aug 31 2005 14:15 Jul 16, 2013 Jkt 037690 PO 00000 Frm 00002 Fmt 0486 Sfmt 5904 F:\112-09~1\112-92~1 WAYNE CONTENTS Page Hon. Cliff Stearns, a Representative in Congress from the State of Florida, opening statement ................................................................................................ 1 Prepared statement .......................................................................................... 4 Hon. Diana DeGette, a Representative in Congress from the State of Colo- rado, opening statement ...................................................................................... 7 Hon. Joe Barton, a Representative in Congress from the State of Texas, opening statement ................................................................................................ 8 Hon. Marsha Blackburn, a Representative in Congress from the State of Tennessee, opening statement ............................................................................ 9 Hon. Lee Terry, a Representative in Congress from the State of Nebraska, opening statement ................................................................................................ 9 Hon. H. Morgan Griffith, a Representative in Congress from the Common- wealth of Virginia, opening statement ............................................................... 10 Hon. Henry A. Waxman, a Representative in Congress from the State of California, opening statement ............................................................................. 10 Hon. Fred Upton, a Representative in Congress from the State of Michigan, prepared statement .............................................................................................. 214 WITNESSES Clinton T. Brass, Analyst in Government Organization and Management, Congressional Research Service .......................................................................... 25 Prepared statement .......................................................................................... 27 Answers to submitted question 1 ..................................................................... Answer to request from Mr. Griffith ............................................................... 89 Thomas A. Schatz, President, Citizens Against Government Waste .................. 101 Prepared statement .......................................................................................... 104 Tad DeHaven, Budget Analyst, Cato Institute ..................................................... 125 Prepared statement .......................................................................................... 127 Patrick L. Knudsen, Grover M. Hermann Senior Fellow in Federal Budgetary Affairs, The Heritage Foundation ....................................................................... 135 Prepared statement .......................................................................................... 137 Veronique de Rugy, Senior Research Fellow, Mercatus Center, George Mason University ............................................................................................................. 147 Prepared statement .......................................................................................... 149 Andrew Moylan, Vice President, Government Affairs, National Taxpayers Union ..................................................................................................................... 152 Prepared statement .......................................................................................... 154 Gary Kalman, Director, Federal Legislative Office, U.S. Public Interest Re- search Group ........................................................................................................ 160 Prepared statement .......................................................................................... 162 Stanley E. Collender, Partner, Qorvis Communications ...................................... 185 Prepared statement .......................................................................................... 187 Scott Lilly, Senior Fellow, Center for American Progress .................................... 192 Prepared statement .......................................................................................... 194 SUBMITTED MATERIAL Majority memorandum, dated October 3, 2011, submitted by Mr. Stearns ....... 13 Letter, dated September 30, 2011, from Allie Neill, Acting Associate Director for Legislative Affairs, Office of Management and Budget, to Mr. Upton and Mr. Stearns, submitted by Mr. Stearns ...................................................... 22 1 Mr. Brass did not answer a submitted question for the record from Mr. Terry by the time of printing. (III) VerDate Aug 31 2005 14:15 Jul 16, 2013 Jkt 037690 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 F:\112-09~1\112-92~1 WAYNE VerDate Aug 31 2005 14:15 Jul 16, 2013 Jkt 037690 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 F:\112-09~1\112-92~1 WAYNE ADMINISTRATION EFFORTS ON LINE–BY–LINE BUDGET REVIEW WEDNESDAY, OCTOBER 5, 2011 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS, COMMITTEE ON ENERGY AND COMMERCE, Washington, DC. The subcommittee met, pursuant to call, at 9:34 a.m., in room 2123 of the Rayburn House Office Building, Hon. Cliff Stearns (chairman of the subcommittee) presiding. Members present: Representatives Stearns, Terry, Sullivan, Mur- phy, Blackburn, Bilbray, Scalise, Gardner, Griffith, Barton, DeGette, Schakowsky, Green, Christensen, and Waxman (ex offi- cio). Staff present: Carl Anderson, Counsel, Oversight; Mike Gruber, Senior Policy Advisor; Todd Harrison, Chief Counsel, Oversight and Investigations; Katie Novaria, Legislative Clerk; Alan Slobodin, Deputy Chief Counsel, Oversight; Sam Spector, Counsel, Oversight; Peter Spencer, Professional Staff Member, Oversight; Kristin Amerling, Democratic Chief Counsel and Oversight Staff Director; Alvin Banks, Democratic Investigator; Brian Cohen, Democratic Investigations Staff Director and Senior Policy Advisor; and Anne Tindall, Democratic Counsel. OPENING STATEMENT OF HON. CLIFF STEARNS, A REP- RESENTATIVE IN CONGRESS FROM THE STATE OF FLORIDA Mr. STEARNS. Good morning, everybody. We convene this hearing to find out what this administration has done to implement the President’s repeated promise to conduct a page-by-page, line-by-line review of the Federal budget and what more can be done. The aim of such a review is to eliminate unnec- essary, duplicative, or wasteful government programs and to cut costs and create new efficiencies. The urgent need for such a review, of course, is obvious. Under the Obama administration, Federal