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S. Hrg. 113–63 

NOMINATION OF HON. SYLVIA M. BURWELL 

HEARING 

BEFORE THE

COMMITTEE ON 

HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE 

ONE HUNDRED THIRTEENTH CONGRESS 

FIRST SESSION 

NOMINATION OF HON. SYLVIA M. BURWELL, TO BE DIRECTOR OF THE 

OFFICE OF MANAGEMENT AND BUDGET 

ARPIL 9, 2013 

Available via the World Wide Web: http://www.fdsys.gov/ 

Printed for the use of the 

Committee on Homeland Security and Governmental Affairs 

( 
(II) 

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

THOMAS R. CARPER, Delaware Chairman 

CARL LEVIN, Michigan 

MARK L. PRYOR, Arkansas 

MARY L. LANDRIEU, Louisiana 

CLAIRE MCCASKILL, Missouri 

JON TESTER, Montana 

MARK BEGICH, Alaska 

TAMMY BALDWIN, Wisconsin 

HEIDI HEITKAMP, North Dakota 

TOM COBURN, Oklahoma 

JOHN MCCAIN, Arizona 

RON JOHNSON, Wisconsin 

ROB PORTMAN, Ohio 

RAND PAUL, Kentucky 

MICHAEL B. ENZI, Wyoming 

KELLY AYOTTE, New Hampshire 

RICHARD J. KESSLER, Staff Director 

LAWRENCE B. NOVEY, Chief Counsel for Governmental Affairs 

TROY H. CRIBB, Chief Counsel for Governmental Affairs 

KRISTINE V. LAM, Professional Staff Member 

DEIRDRE G. ARMSTRONG, Professional Staff Member 

KEITH B. ASHDOWN, Minority Staff Director 

ANDREW C. DOCKHAM, Minority Chief Counsel 

TRINA D. SHIFFMAN, Chief Clerk 

LAURA W. KILBRIDE, Hearing Clerk 
(III) 

C O N T E N T S 

Opening statements: Page 

Senator Carper ................................................................................................. 1 

Senator Coburn ................................................................................................. 4 

Senator McCain ................................................................................................ 8 

Senator Johnson ............................................................................................... 11 

Senator Heitkamp ............................................................................................ 14 

Senator Portman .............................................................................................. 16 

Senator Ayotte .................................................................................................. 19 

Senator Baldwin ............................................................................................... 22 

Senator Levin .................................................................................................... 25 

Senator Pryor .................................................................................................... 27 

Prepared statements: 

Senator Carper ................................................................................................. 43 

Senator Coburn ................................................................................................. 46 

WITNESSES 

TUESDAY, APRIL 9, 2013 

Hon. John D. Rockefeller IV, a U.S. Senator from the State of West Virginia 

Testimony .......................................................................................................... 1 

Prepared statement .......................................................................................... 47 

Hon. Sylvia M. Burwell, to be Director, Office of Management and Budget 

Testimony .......................................................................................................... 9 

Prepared statement .......................................................................................... 49 

Letter from the Office of Government Ethics ................................................. 51 

Responses to pre-hearing questions ................................................................ 55 

Biographical and financial information .......................................................... 80 

Responses to post-hearing questions .............................................................. 101 

Statement of support from Senator Joe Manchin III ........................................... 116 

(1) 

1The prepared statement of Mr. Rockefeller appears in the Appendix on page 47. 

NOMINATION OF HON. SYLVIA M. BURWELL 

TUESDAY, APRIL 9, 2013 

U.S. SENATE,

COMMITTEE ON HOMELAND SECURITY

AND GOVERNMENTAL AFFAIRS, 

Washington, DC. 

The Committee met, pursuant to notice, at 2:33 p.m., in room 

SD–342, Dirksen Senate Office Building, Hon. Thomas R. Carper, 

Chairman of the Committee, presiding. 

Present: Senators Carper, Levin, Pryor, Baldwin, Heitkamp, 

Coburn, McCain, Johnson, Portman, and Ayotte. 

OPENING STATEMENT OF CHAIRMAN CARPER 

Chairman CARPER. The hearing will come to order. 

What I would like to do is go out of order and welcome all of you 

here today. 

Senator Rockefeller and Senator Coburn I believe have simultaneous hearings going on in the Intelligence Committee. They need 

to be in two places at once. Even as good as they are, they have 

not figured out how to do it. So I am going to ask Senator Rockefeller, if he would, to introduce our nominee, and then yield to Senator Coburn for any comments he wants to make, and then we will 

just take it from there, returning to regular order after that. 

Senator Rockefeller, welcome. 

TESTIMONY OF HON. JOHN D. ROCKEFELLER IV,1 A U.S. 

SENATOR FROM THE STATE OF WEST VIRGINIA 

Senator ROCKEFELLER. I will so do, Mr. Chairman, if you promise 

to tell us all the times that you have been to Hinton, West Virginia, because you have. 

Chairman CARPER. I actually lived there, Jay, when I was a little 

boy. 

Senator ROCKEFELLER. Well, I want to know more about it, but 

not just now. 

Chairman CARPER. Fished on the New River, Bluestone Dam. 

Senator ROCKEFELLER. I know. 

Mr. Chairman, 15 years ago, I was honored to introduce somebody named Sylvia Mathews during her nomination hearing to become Deputy Director of the Office of Management and Budget 

(OMB). And today, obviously, we are moving up. There is a lot that 

happened in her life, all of it good, but to be head of the Office of 
2 

Management and Budget at this particular time in our Nation’s 

history is an extraordinary position. 

We are going to be debating the best course for our country’s future. It is going to take a wise hand. We need smart, strong leadership. We need the Federal budget office to be good. 

Sylvia Mathews, now Burwell, is absolutely the person for this 

job. And I do not say that because she comes from West Virginia. 

I say that because I know her really well, and she is one of the 

most extraordinary people I have ever seen going through my various decades of life. I urge this Committee to swiftly consider her, 

pass her, and crown her. 

I have written down here that I know Sylvia, I have known her 

most of her life—I say actually her entire life, but that would be 

a lie. I met her when she was 8, and I have known her parents 

for years. Cleo and Bill set an incredible example for their two 

daughters, Sylvia and Stephanie. I have attended church with 

them. I have been with them at many major milestones, including 

the wedding reception for Sylvia and her husband, Stephen, who 

sits behind me. And, Sylvia, you have to do all the introducing, all 

right? Because I will be heading out. 

I can tell you that Sylvia is brilliant. It is such a cliche, almost 

embarrassing to say, but she is absolutely brilliant. She will never 

tell you that because she is modest, but I can tell you that because 

I am right. People like her come very rarely. She graduated from 

Harvard and was a Rhodes Scholar, but she has never forgotten 

her West Virginia roots, which is key to everything that I feel 

about her, and I think it is key to all of her success. Always 

grounded, always thinking of people in what she does. 

She is humble, she is hard-working, and she has integrity. She 

remains devoted to helping our Nation’s hard-working families, and 

she has just proven that through everything she has done. Her 

grandparents were Greek immigrants. They came to this country— 

that whole evocation of the emotions of that, the work of that, the 

toil of that is very much in my mind. 

Sylvia is a proud native of Hinton, West Virginia. It is not the 

largest city in America, but the 3,000 who live there would argue 

that it has a distinguished railroad history. It is nestled in the 

mountains of Appalachia. It is really hard to get to. And her friend 

Terri Giles right behind me knows that very well. Deep in the hills 

of Appalachia. 

She could have made a fortune at any or all points in her life 

just by switching signals and going off to what she was trained to 

do. She has spent the majority of her life in public service or working at organizations that are helping people—foundations. There is 

no doubt that she is—well, let me be more specific. 

Sylvia previously served in the Clinton Administration as Staff 

Director for the National Economic Council, Chief of Staff to Treasury Secretary Robert Rubin, Deputy Chief of Staff to the President, 

and Deputy Director of the Office of Management and Budget. 

She was central to crafting the Clinton budget in the late 1990s, 

which brought us a whole lot of surpluses and something called 

‘‘prosperity’’ and ‘‘growth.’’ 

There is no doubt, there can be no doubt that she is the person 

to tackle the challenges of today. Debts and deficits are staggering. 
3 

1The statement for the record from Senator Joe Manchin appears in the Appendix on page 

116. 

The Tax Code is riddled with complexity. And it needs her. It needs 

her guidance, her wisdom, and her calmness. 

Our country needs somebody with the experience and the intellect of Sylvia Mathews Burwell at the center of the great debates 

that are going to be with us over the next 4 years at the very least. 

The thought of rewriting the Tax Code, to those of us on the Finance Committee, is a staggering thought. Having Sylvia Mathews 

Burwell around will help. 

After her time in the Clinton Administration, she turned to philanthropic work, which was a natural thing for her, as President of 

the Gates Foundation’s Global Development Program, which put 

her all over the world, and she headed that. And as you know, that 

is one of the largest foundations in the world. It makes the Rockefeller Foundation look like a small piece of dust being blown down 

some street somewhere. And then recently she has worked for the 

Walmart Foundation. 

But she wants back in public service. Not only does she understand budget issues, but she wants to put that knowledge to good 

use and put it to good use to balance and to reduce deficits, all the 

right things, but mostly to help people and help communities. That 

is Sylvia Mathews Burwell. It just is, and that is why I am so 

proud to introduce her. 

I am furious that I cannot introduce her tomorrow. Joe Manchin 

is going to, and he better not speak as well as I am. But, anyway, 

he has a statement he wants to put in the record, Mr. Chairman, 

for this hearing. 

Chairman CARPER. Without objection, his statement will appear 

in the record.1

Before I yield to Dr. Coburn, let me just acknowledge, as my colleagues know, we have a lot of Members who come, usually Senate 

but sometimes House as well, to be present and to introduce a witness. Almost never do we find someone who has known the witness 

since the age of 8, knows her family, worshipped in church with 

them. It is an amazing recommendation and introduction. 

Senator ROCKEFELLER. Mr. Chairman, it is interesting. The act 

of introducing her, presenting to a Committee a candidate for a position, there is almost a cliche protocol about it. But in my mind, 

this is an act of public service on my part. I just do not even think 

of what we all have seen so much of, you say your three words and 

get out. I am talking longer than I should, and I do not care—unless you do. 

She has traveled the world; she knows the world. The people of 

West Virginia are so incredibly proud of her, always have been. 

She has always been that person looming out on top of the rest of 

us who has a sort of—not a superiority, but a depth, an honesty, 

and an integrity which our State sorely needs. I present her to you 

with pride, and I thank you. 

Chairman CARPER. We are happy to receive your recommendation and to hear her testify and to take her questions. That was 

a remarkable, extraordinary introduction, and we thank you for it. 
4 

1The statement for the record from Senator Coburn appears in the Appendix on page 46. 

In all the years I spent as a little boy learning to fish on the New 

River, which flows right by Hinton, West Virginia, I never saw anybody walk across the New River. But if anybody could, with an introduction like that, maybe Sylvia would be that person. But thank 

you. 

Senator ROCKEFELLER. But we do not want to take that chance. 

Chairman CARPER. Probably not. 

Let me yield to Dr. Coburn, please. 

OPENING STATEMENT OF SENATOR COBURN 

Senator COBURN. Well, let me welcome you here, and your family 

and friends. We had a great conversation in my office. You are 

nominated to be the Director of the Office of Management and 

Budget. 

Congress has failed to do its job, and oftentimes OMB has failed 

to do its job, and I have a lot of confidence that you can actually 

make a very big difference for our country in how that office executes strategies to actually help us solve some of our problems. 

I have a statement for the record, Mr. Chairman, which I would 

like to put in.1 And due to the Intelligence Committee meeting that 

I think is really a priority, Senator Rockefeller and I will not be 

here. I will submit some questions for the record so that we have 

them on record and so I can call you later and say here is what 

you said. 

Anyhow, we welcome you to the Committee. I appreciate the fact 

that you would come back and serve. We do not have enough people willing to do that right now, and there is no question you are 

highly qualified for the position. 

Thank you. 

Chairman CARPER. Thank you very much. 

Senator Rockefeller, again, thanks so much for joining us, and 

Dr. Coburn, if you can come back you are more than welcome to. 

I think before we do anything else, I am going to ask our nominee if there is anyone in the room that she would like to introduce 

to us. You are welcome to do so at this time. 

Ms. BURWELL. Thank you, Mr. Chairman. I would love to introduce my husband, Stephen Burwell, and my brother-in-law, Joe 

O’Keefe; one of my college friends, Linda Lurie; and one of my best 

friends since I was 4, Terri Giles, from Hinton, West Virginia. 

Chairman CARPER. All right. That is great. We are delighted that 

you are all here. I was kidding Stephen before we started off about 

his middle name being ‘‘Lucky,’’ and I think his wife believes that 

her middle name is ‘‘Lucky.’’ And I think they are both very fortunate—we are fortunate, Stephen, that you would be willing to 

share your wife. I know you have a young family, so it is an extraordinary gift that both of you give to our country at this time. 

Today, as Senator Rockefeller said, we meet to consider the nomination of Sylvia Mathews Burwell, President Obama’s choice to 

serve as Director of the Office of Management and Budget, with a 

big underline under the word ‘‘management.’’ This is a critical nomination, as we know, that comes at a critical time in our Nation’s 

history, as OMB has lacked a Senate-confirmed leader since Janu-
5 

ary of last year, more than a year, when then Director Jack Lew 

left to become Chief of Staff at the White House. 

Folks who know me know that I am a big believer in the power 

of leadership. Throughout my life and career, I have seen the impact of dedicated and talented leaders firsthand and learned how 

good leaders can be critical in turning around struggling organizations and providing essential guidance during challenging times. 

This is one of those challenging times. Leadership is an important, 

and often undervalued, asset that can determine whether or not an 

organization of any size or scale can effectively accomplish its mission or missions. 

That is why I have long been concerned about a problem that has 

plagued the executive branch through both Democratic and Republican Administrations: numerous and longstanding vacancies in 

senior positions throughout the Federal Government. This problem 

has become so pervasive that I have started referring to it as ‘‘executive branch Swiss cheese.’’ At any given moment, we are lacking 

critical leadership in numerous positions in the executive branch in 

just about every agency, undermining the effectiveness and accountability of our government. While Congress and the Administration have taken steps to address this problem, the fact remains 

that we still have more work to do to ensure that we have talented 

people in place to make these critical decisions and to hold accountable. That is one of the reasons why today’s confirmation hearing 

is so important and why I am pleased that President Obama has 

put forward a nominee who I believe has the skills necessary to 

step in and be effective not in a week or two or a year or so, but 

right now. 

Ms. Burwell’s prior experience in government has prepared her 

well to lead during this challenging period for our Nation, a time 

when we can no longer afford to avoid making the tough decisions 

that are necessary to put our Nation on a responsible and sustainable long-term fiscal path. 

She served, as Senator Rockefeller mentioned, as Deputy Director of the Office of Management and Budget and Deputy Chief of 

Staff during the Clinton Administration—a time when our government got its deficit under control and achieved four balanced budgets in a row. She is someone who knows firsthand how challenging 

budget negotiations can be. But she is also someone who knows 

that it is not only possible but imperative for the Congress and the 

President to reach a bipartisan agreement on a comprehensive, 

long-term budget plan. 

Ms. Burwell also brings valuable leadership skills from the private sector, where she helped run two of our Nation’s largest philanthropic foundations, the Bill and Melinda Gates Foundation and 

the Walmart Foundation. If I am not mistaken, I think she spent 

some time at McKinsey as well, as a management consultant. In 

all of the jobs she has held over the years, Ms. Burwell has shown 

a great work ethic and intellect and a strong business perspective. 

She also is a warm and gracious person and someone who can 

build consensus across party lines at a time when members of both 

political parties need to set aside partisan considerations for the 

sake of our country. These qualities, in my opinion, can be attributed in large part to the fact that she hails, as has been mentioned 
6 

here today, from Hinton, West Virginia—a wonderful little town of 

wonderful people where I was once privileged to live as a young 

boy. 

These qualities have made Ms. Burwell an effective leader since 

the day she arrived in Washington as a young member of President 

Clinton’s economic team. Her wisdom from both the public and private sectors will now be put to use in addressing fiscal challenges 

that are much more severe than the daunting challenges she 

helped address in the 1990s. For some perspective on the serious 

nature of our Nation’s debt and deficit crisis, I will just note that 

in fiscal year 1993, the deficit was $255 billion. The Congressional 

Budget Office (CBO) now projects the deficit for this fiscal year to 

be $845 billion, and that will be the first time in 5 years that the 

deficit actually dipped below $1 trillion. In 1993, debt as a percentage of gross domestic product (GDP) was 49 percent. Today, it is 

approaching 76 percent. 

The grand budget compromise that I believe we need to address 

this fiscal crisis must have, I think, three essential elements. It 

must address both spending and revenues in a balanced approach. 

It must rein in the costs of our entitlement programs in a way that 

does not savage the poor or elderly. And it must demand better 

management of our Government programs, something that Senator 

Coburn has already referred to. We must deliver better services to 

the American people at a lower cost in almost everything that we 

do. 

This Committee is an important partner with the Office of Management and Budget in all of these areas, but especially in ensuring that our government achieves better results for less taxpayer 

money. Both Congress and the executive branch bear equal responsibility in rooting out waste, fraud, and abuse in Government programs, and just plain inefficiency. Both the legislative and executive branches bear responsibility in ensuring that we measure the 

performance of programs and alter or end those programs that do 

not work or have outlived their usefulness. Both bear responsibility 

for providing transparency to the public on how their tax dollars 

are spent. 

Dr. Coburn and I have worked closely together over the years to 

identify sensible, achievable savings that could be accomplished 

simply through better management. I will mention just a couple. 

We know that we can save billions of dollars by shedding some 

of the thousands of pieces of Federal property that we no longer 

use or that we underuse. 

We know that we can save billions of dollars every year by further reducing the amount of improper payments that our government makes—still over $100 billion per year. 

We know that we can save billions in Federal contracting every 

year through efforts such as so-called strategic sourcing initiatives, 

which involve buying more in bulk. 

We can save billions of dollars through better management of our 

Government’s information technology (IT) infrastructure, including, 

for example, by continuing the effort to consolidate Federal data 

centers. 

And we can bring in billions of dollars in revenues by doing a 

better job of collecting taxes that are owed but not being paid. And 
7 

here I am not just talking about new taxes, but I am talking about 

doing a better job of collecting the taxes that are already owed, 

some of which have been outlined and pointed out by our own Permanent Subcommittee on Investigations, which is led by Senator 

Levin. 

And I know from my conversations with Ms. Burwell that she is 

fully committed to all of these efforts, and more. She is also committed to helping improve ways to measure the performance of 

Government programs and to ensure that we have sound financial 

management practices across the government, including at the Department of Defense (DOD), which in its whole history has never 

been able to conduct a full audit of its finances, much less obtain 

a clean audit. 

Ms. Burwell, as you sit here 20 years after you first came to 

Washington, I do think it is instructive to look back and reflect on 

the budget debate of those days when, like now, we faced deficits 

and long-term debt problems that on many days seemed insurmountable. 

And just over 20 years ago, in January 1993, President Clinton’s 

nominee to be Director of the Office of Management and Budget, 

then Congressman—my colleague at the time—Leon Panetta, appeared before this Committee. And he talked about how the American people did not trust the government anymore. He spoke of the 

importance of making the budget process work so that our government could start to restore that credibility. This is what he told 

this Committee 20 years ago. Leon said, ‘‘We need to make government more efficient, more creative, make it an instrument of longterm economic growth, not an impediment, and make it a source 

of investment in our future, not a robber of our children’s birthright.’’ 

All of those words ring, I think, even more true today. The American people will not—and should not—tolerate Congress and the 

White House kicking the can down the road any longer on making 

tough budget decisions. Nor will they tolerate our failure to make 

significant progress in addressing some of the tough management 

challenges faced by agencies across government. My strong recommendation to my colleagues today is that we confirm this nomination of Ms. Burwell promptly so that she can apply her considerable skills and intellect to the work that the American people sent 

us here to do. 

I called Erskine Bowles when the President submitted the name 

of Sylvia Burwell to be the OMB Director. I knew they worked together in the Clinton Administration. I said, ‘‘Erskine, tell me what 

you know about Sylvia Burwell.’’ And he took me back in time to 

the late 1990s—I think you were at the time maybe Chief of Staff 

to Bob Rubin, as I recall. And he said that he was in a meeting 

in the Oval Office with Bob Rubin, the President, and you. And I 

think the President was grilling Bob Rubin on a particular issue, 

and he was maybe struggling just a little bit to respond. And you 

surreptitiously handed a note to Bob Rubin. He read it and gave 

the President a brilliant answer. And as the President was ooh-ing 

and ahh-ing over the brilliance of the answer, Erskine interrupted 

and said, ‘‘Mr. President, I think I have broken a code here. Rubin 

is not that smart. It is Sylvia. She just handed him this note that 
8 

enabled him to address the issue you have raised.’’ That is high 

praise from a guy that I respect enormously. 

Again, we are just grateful that you are here. Our best really to 

the folks who raised you, your Mom and Dad, for doing a terrific 

job with you, and I suspect—you have one sister? 

Ms. BURWELL. One sister. 

Chairman CARPER. One sister. And you turned out well, and I 

know Hinton, West Virginia, and West Virginia are proud of you, 

and so am I. 

And with that having been said, I think we turn next to Senator 

McCain. 

OPENING STATEMENT OF SENATOR MCCAIN 

Senator MCCAIN. Thank you, Mr. Chairman, and I apologize that 

I have to go to another hearing. I just wanted to say this is an incredibly well-qualified nominee who is well known to many of us 

in her previous incarnations. There must be some character flaw 

that she wants the job, but other than that, I think that she is very 

well qualified, and the witness can see how controversial her nomination is by this packed Committee. But this is an excellent choice, 

and I wish her well. And maybe before she leaves she could get us 

some discounts at Walmart. [Laughter.] 

I congratulate her on her nomination. 

I thank you, Mr. Chairman, for allowing me to say a few words. 

Chairman CARPER. Thanks so much for being here and for your 

comments. 

I am going to go through some brief introductions, very brief, and 

ask a couple of questions, and then we will turn it over to you and 

then to my colleagues. 

Sylvia Burwell has filed responses to biographical and financial 

questionnaires, answered pre-hearing questions submitted by our 

Committee, and had her financial statements reviewed by the Office of Government Ethics. Without objection, this information will 

be made part of the hearing record, with the exception of the financial data, which are on file and available for public inspection in 

the Committee offices. 

Our Committee rules require that all witnesses at nomination 

hearings give their testimony under oath, and I am going to ask 

you, if you would, to stand and to raise your right hand and respond to these questions. 

Do you swear that the testimony you are about to give to the 

Committee will be the truth, the whole truth, and nothing but the 

truth, so help you, God? 

Ms. BURWELL. I do. 

Chairman CARPER. Please be seated. Please go ahead at this 

time and make your statement, and then I am going to come back 

and ask you four perfunctory questions. Thank you. Welcome. 
9 

1The prepared statement of Ms. Burwell appears in the Appendix on page 49. 

TESTIMONY OF HON. SYLVIA M. BURWELL1 TO BE DIRECTOR, 

OFFICE OF MANAGEMENT AND BUDGET 

Ms. BURWELL. Thank you, Chairman Carper, and thank you, 

Ranking Member Coburn, and the entire Committee for welcoming 

me today. It is a privilege to be considered by this Committee as 

the President’s nominee for the Office of Management and Budget. 

I want to begin by thanking Senator Rockefeller for that kind introduction, and I will just say, I do not know that he actually remembers it. He, for me, embodies the values of my small town in 

West Virginia. And it was many years ago that the Senator visited 

Hinton, and at that time, he gave his first interview to a group of 

young reporters. We were actually in the sixth grade and had started our own newspaper. And it was just a reflection of his caring 

and commitment to the youth of our State. And his willingness to 

engage with the young people of the State of West Virginia is just 

reflective of what an incredible role model he has been in terms of 

public service for me and for so many others, and I thank him for 

that and the tireless work that he has done in the State of West 

Virginia and for the Nation. 

I am pleased that my husband, my brother-in-law, and friends 

could join me. Our 5-year-old Helene and our 3-year-old Matthew 

chose a park over hearing their Mommy answer questions, so they 

are not with us today. 

I understand the sacrifices entailed by public service, and I recognize that one of the biggest burdens often falls on one’s family. 

And so I deeply appreciate the support that my family is giving me 

as I take on this new challenge. 

I am also grateful to President Obama for nominating me to 

serve as the next Director of the Office of Management and Budget. 

It is an honor to be considered for this position at this important 

time. 

And, finally, I want to thank the Members of the Committee and 

their staffs for the meetings that have occurred over the past 

weeks as I have come to prepare for this hearing. I appreciate everyone’s time. For those who I have not had the opportunity to 

meet with, I look forward to doing that. And what I hope is that 

those meetings are the beginning of a conversation that, if confirmed, we can continue. 

I believe in the greatness of our Nation. As a second-generation 

Greek American, my family and I have benefited greatly by the opportunities this country has offered. 

Our Nation has made important progress over the last 4 years. 

We have pulled out of a deep economic downturn. Our financial 

markets have stabilized. Businesses are hiring again. And we 

began the long journey to put our fiscal house in order. 

The President and the Congress together have made progress on 

the deficit, but there is much more to do. And we need to focus on 

making the economy work for middle-class families and American 

business, in both the short and the long term—harkening back to 

some of the phrases and words of Leon Panetta. 

If I am confirmed, my primary focus will be to contribute to 

achieving balanced deficit reduction, increased efficiency and effec-
10 

tiveness in how our government works, and targeted investments 

that help this economy grow and create jobs. 

The President is actively engaged with Members of Congress on 

this subject. And if I am confirmed, I will do everything in my 

power to keep this dialogue going and to continue to build on the 

relationships between the Administration and Members on both 

sides of the aisle. 

From my experience in the Clinton Administration—at OMB, the 

White House, and the Treasury Department—I learned the importance of working together in a bipartisan fashion to get things 

done. I saw firsthand how we had to come together to get deficit 

reduction agreements in the late 1990s. I know that we all come 

to the table with firm convictions and the belief that we know the 

right answer. But I also know that we all come with the same conviction to serve the American people, which I hope is what will 

drive us to find common ground to move the country forward. 

There is no question that the road ahead will be difficult. The 

challenges we face are sobering. But I am confident we can come 

together on a comprehensive plan. 

I am pleased with the prospect of returning to OMB. I have tremendous respect for the institution and the incredibly talented men 

and women who work there. I am hopeful that, if I am confirmed, 

I can contribute to ensuring OMB is a place where talented people 

want to go and that the institution is strong for other administrations. Although OMB is most well known for its work on the Federal budget, the management side of OMB is critical. 

In the current fiscal environment, it is more important than ever 

that we are operating the government in the most efficient and effective way possible. 

I want to credit this Committee and Acting Director Zients for 

their strong leadership in these areas. And if I am confirmed, I 

want to build on these efforts and continue to increase the efficiency and effectiveness of taxpayer dollars. By governing smartly 

and being good stewards, we can reduce the deficit and increase 

the value of what is delivered. 

As someone who has been out of government now for 12 years, 

I am hopeful that I can bring a fresh perspective to the fiscal debates underway. From my positions at the Walmart Foundation 

and the Bill and Melinda Gates Foundation, I have seen the important role that both the government and private sector play in the 

lives of the American people. 

If I am confirmed, it would be an honor to dedicate myself to 

using the tools of OMB to ensuring that our government delivers 

for the American people. 

Again, I want to thank the President for giving me this opportunity and the Committee for considering my nomination. I look 

forward to answering the questions that you may have. 

Thank you, Mr. Chairman. 

Chairman CARPER. Thank you so much for that statement, and 

to our guests for joining us as well. 

I am going to ask four questions. I am going to yield then to Senator Johnson for whatever questions he might like to ask, and then 

Senator Heitkamp, Senator Portman, and then I will ask some 
11 

questions of my own. I think you may have heard these questions 

before. 

First, is there anything you are aware of in your background that 

might present a conflict of interest with the duties of the office to 

which you have been nominated? 

Ms. BURWELL. No, I am not. 

Chairman CARPER. Do you know of anything, personal or otherwise, that would in any way prevent you from fully and honorably 

discharging the responsibilities of the office to which you have been 

nominated? 

Ms. BURWELL. I do not. 

Chairman CARPER. And do you agree without reservation to respond to any reasonable summons to appear and testify before any 

duly constituted Committee of Congress if you are confirmed? 

Ms. BURWELL. Yes, sir, I do. 

Chairman CARPER. All right. So far, so good. 

Senator Johnson, please. 

OPENING STATEMENT OF SENATOR JOHNSON 

Senator JOHNSON. Thank you, Mr. Chairman. 

Ms. Burwell, welcome, and welcome to your family and friends. 

I also enjoyed our meeting earlier, and I appreciate your willingness to step forward and serve. It is a sacrifice, particularly with 

a young family. You know what you are getting into, so thank you 

for your willingness to do that. 

I will also have an opportunity to question you during the Budget Committee confirmation hearing as well, so let me concentrate 

on the management side—from my standpoint, the regulatory side. 

I was in Wisconsin the last 2 weeks and visited one company, 

which I do not want to name, but they were talking about the new 

Boiler Maximum Achievable Control Technology (MACT) rule. They 

have had an engineering study conducted on it. It will cost them 

about $5 million to hopefully be able to comply. That was the cost. 

The benefit—and this is an independent engineering study—they 

would be able to reduce the non-toxic particulate matter coming 

out of their operation by two dump truck loads full per year. That 

is it. To me, that certainly qualifies under the law of diminishing 

returns as something we really need to take a look at. 

So, in your position at OMB, what would be your response to 

that? How can we do a far more effective job at evaluating those 

types of regulations that have such a high cost at such a minimum 

benefit? 

Ms. BURWELL. Senator, I am not familiar with that specific example, but in terms of overall philosophy and how we can work to 

make our regulatory system work in a more effective way, I think 

it is, starting with what the principles of what we are trying to do 

with the regulation and thinking through the issues of we do the 

regulations in order to promote health, safety, and the environment, at the same time, consider how those regulations impact the 

economy, economic growth, innovation, and jobs, and putting those 

things together through a process of which the Office of Information and Regulatory Affairs (OIRA) is an important part—an important part of making sure that things are appropriately considered; looking at the cost/benefit analysis, which agencies do; think-
12 

ing through, have the appropriate parties had an opportunity to 

comment and be a part of the discussion, and whether that is inside the government or outside the government. 

And so if I am confirmed, I look forward to helping OIRA in 

terms of implementing that oversight role in regulation. 

Senator JOHNSON. You raise an important issue in terms of having people affected by regulations having input into the process. 

Between 1998 and 2010, the opportunities for public comment have 

really declined. In other words, the number of times regulations 

have been issued without opportunity for public comment has basically doubled from 18 percent of the time to 35 percent of the time. 

Is that something that troubles you? Is that something you would 

direct your attention toward solving? 

Ms. BURWELL. I think there are two elements to that question of 

the public comment, and, one, I think you are referring to interim 

rules, the issuance of interim rules and the use of those as a tool. 

And if I am confirmed, I want to make sure that any use of interim 

rules is both lawful and appropriate. 

At the same time, in the broader category of regulation, one of 

the things that I think has changed since the time when I was previously at the Office of Management and Budget is the opportunity 

that people can actually comment using technology. So that expands the ability for people to discuss and comment in the rulemaking process because I think as we think about public comment 

and transparency, we want to think about it over the entirety. But 

with regard to the specific issue you are raising, interim rules, that 

is something that I want to understand how and why those rules, 

when they are interim, what are the decisions and how they are 

made. 

Senator JOHNSON. One of the macro pieces of information that 

was pretty eye-popping to me when I came here was a study commissioned by the Small Business Administration (SBA) of this Administration that tried to put a figure on how much it costs to comply with Federal regulations each year, and their result was $1.75 

trillion per year. To put that into perspective, that is a number 

that is larger than all but eight economies in the world. 

I know some people dispute that figure. I have no idea how particularly accurate it is other than we know the regulatory burden 

is huge. 

Is that something you acknowledge? Do you dispute the figure? 

Or, again, do you just acknowledge the harm that the regulatory 

burden is causing to economic growth and job creation? 

Ms. BURWELL. Senator, with regard to the issue of small business, my father was a small businessman, and so I understand and 

appreciate that he was an optometrist. And when I think about 

that at OMB, I think it actually cuts across a number of areas that 

are important. And one is in the regulatory space, and I think that 

is an important role that OMB has in making sure that SBA and 

small business has a voice. And I think that is part of the oversight 

role. 

I think throughout a number of other different areas in small 

business, whether it is in the area of strategic sourcing—the Strategic Sourcing Leadership Council has seven of the largest contracting members and small business, so that voice is at the table. 
13 

Or as we think about questions of insourcing and those types of 

topics, making sure that we consider small business. 

So I think across the board, the issues of how different actions 

of government affect small business are important. And one of the 

most important things we can do is make sure the right voices are 

at the table. 

Senator JOHNSON. What proposals have you heard potentially 

coming out of Congress that would help reduce our regulatory burden? 

Ms. BURWELL. That is one of the things that I hope, if confirmed, 

that I can get deeper into, where are the places where people think 

things are not working. For instance, the lookback that has occurred—and, again, something related to small business in terms 

of the lookback and thinking things, regulations we no longer need, 

that is a process that is ongoing. There were 500 things identified. 

How is that process going? And should we build on that process, 

change that process? What are the specifics? Because one of the 

things that I think is important in thinking through the tools that 

OMB has or does not have is, what is the outcome we are trying 

to get and what is not working right now? Are there places where 

we do have best practices that are working that we need to build 

on? Or are there places where things are not working and we need 

to stop? 

And so, if confirmed, what I would like to do is understand what 

that list looks like, working with this Committee to understand 

that, so we can get at the ones that are the largest and the most 

important to change. 

Senator JOHNSON. Just a quick suggestion. We held a pretty interesting hearing chaired by Senator Mark Warner about the British one-in/one-out rule. So for every new regulation, you have to 

find one of equal or greater compliance cost to get rid of. I would 

go more one-in/ten-out, but that is an editorial comment. 

One last quick question. I believe this Committee has been very 

well served by the efforts of the Government Accountability Office 

(GAO). It is really one of the areas of government where we have 

actually cut their budget, and as a fiscal conservative, it would be 

one of those areas I would probably be willing to increase their 

budget. 

I want to get your quick assessment on that and your level of 

support for the GAO. 

Ms. BURWELL. I think the GAO is actually an important partner 

for all of us as we try to move to more effective and efficient government, and the report that came out today, I think, is something 

that we need to take a close look at and work on. I think the Administration has in some cases worked on those issues. I know that 

the Congress has as well. 

But I think GAO is an important partner to have these conversations, looking for those opportunities to make government more effective and efficient, and I welcome that opportunity, if confirmed. 

Senator JOHNSON. Well, thank you. I look forward to seeing you 

tomorrow to talk about the budget. 

Thank you, Mr. Chairman. 

Ms. BURWELL. Thank you, Senator. 

Chairman CARPER. Senator Heitkamp. 
14 

OPENING STATEMENT OF SENATOR HEITKAMP 

Senator HEITKAMP. Ms. Burwell, I greatly enjoyed also our discussion as you came to my office and our free-flowing exchange of 

ideas. And I am here today, kind of ironically, in a room that is 

not very packed with people, realizing that this is probably, in my 

opinion, one of the most important confirmation hearings that I 

will attend in the next 4 years. 

Why do I say that? Because if you ask any American today, they 

are deeply concerned about the fiscal condition of our country, not 

just because they hear it on the news, but because intuitively they 

know that in many ways we are mortgaging our children’s future. 

And if we do not get a handle on it, we will not be successful into 

the future. 

And so I applaud you for stepping up at a very trying time. I 

want to make sure that you know that, at least from my standpoint 

on this Committee, I intend to be a great friend and a great adviser 

to you in the many circumstances that you will confront. 

I just want to followup on a couple points. One is leadership. I 

read your resume, and I know that you have been one of the folks 

who have been in the back passing notes forward. And I want to 

make sure that you know that our expectation is that you are going 

to be sitting at the table, a full partner with the President and 

with the Cabinet in solving our fiscal crisis, and that you feel that 

is, in fact, the authority that you have been granted by the President. 

Ms. BURWELL. Yes, Senator, I do feel that. I feel very comfortable 

and confident that I will be a part of the President’s economic team 

and be a part of those conversations in a very real way and an important way. And it has been my experience probably from folks 

like Bill Gates to Mike Duke, the CEO of Walmart, that I am not 

a shrinking violet in the room. [Laughter.] 

Senator HEITKAMP. Somehow I had that sense when you and I 

had that visit. 

I also want to piggyback a little bit on the discussion that Senator Johnson just had about regulatory reform. This is not makebelieve. This is real all across all the corners of America. People believe in clean water. They believe in clean air. They believe in safety regulations. But they see things that are happening in their 

businesses that make no sense. In fact, I joke a little bit that I am 

going to write a book, and it is going to be titled, ‘‘That Makes No 

Sense,’’ and it is going to be a thousand-plus pages because every 

day I hear things that make no sense. And we have all been—at 

least, I have been in, my life—a regulator, and I know how people 

who write regulations think. And I know how much leadership it 

requires to ratchet that zealous, ‘‘I want to make things perfect in 

the world’’ behavior, when that may not be the best way to manage 

it. 

I think from my standpoint, the best way to understand regulation, the best way to understand what Senator Johnson has been 

talking about and what I have been talking about, is actually 

reaching out to those who are regulated, not just the agencies who 

are zealous, but reaching out to the people, in my case, at the grain 

elevator who are sweeping their floor constantly with very little 

risk to anyone because no one is ever on the ground there—but yet 
15 

that is a regulation that they are required to comply with—or our 

small community banks who are struggling under the regulations 

and basically forced to no longer do mortgages. 

So I want to know what you are going to do to bypass what we 

call ‘‘the beltway mentality’’ and to actually visit with North Dakota and American businesses and with those folks who work every 

day struggling to meet compliance burdens. 

Ms. BURWELL. I think as Senator Rockefeller mentioned, during 

my lifetime, my North Star is being from a small community and 

a small town and knowing and thinking about the issues from that 

perspective, and I will hope that during this—it has never been 

anything but my North Star and will continue to do that. 

With the specifics of how to do that, I think your point that you 

struck on about leadership actually is an important point in terms 

of making sure that there is a culture and a thought process and 

an approach. I think it is a signal that in the answer I mentioned 

small businesses three different ways in terms of how they interact 

with OMB. The signals that I send as a leader, I think, are actually a very important part of the application of the processes that 

exist in ways that get to the outcome that you are talking about. 

So I understand that it is my responsibility as part of leadership 

and to use those processes that exist and then answer the question 

that Senator Johnson posed, which is, if there are not enough tools 

and we do not think we can get it done, what tools do we need? 

And so that is, if confirmed, what I would like to try to do. 

Senator HEITKAMP. We would just like to believe that at the 

table there are not just the bureaucrats who are driven to make 

the world perfect, but that there are people who are experiencing 

real-life conditions and conclusions as a result of these regulations. 

And, there is legitimate fear out there, and you have seen it and 

I have seen it in almost daily visits with people in my communities 

in my home State, and I am sure many communities in States 

across this country. 

I want to also talk a little bit about the interaction between OMB 

and, let us say, the Bureau of Reclamation. I have a particular concern about a record of decision, and this is not even about the merits of the case. You and I can debate the merits of the case. But 

my concern about this is that there is a lack of decisionmaking, 

which absolutely frustrates people in the real world when they 

know they have to make decisions in a timely basis. And I would 

like to hear if you are willing to make a commitment to really look 

at those things that have been hanging fire for a long time at OMB 

and do not seem to get resolved with the agencies, or they get 

tucked away into a corner without any real attention to resolving 

the controversy. 

Ms. BURWELL. Senator, you have my commitment that, if I am 

confirmed, what I want to do is have a relationship where we can 

have those conversations, where, when you pick up the phone, let 

me know what the concerns are, and that I have the ability to have 

a dialogue and look into it, understand it, and have a conversation 

about it. And so that is what I am committed to do and believe is 

a very important part of relationship building, is a dialogue, an 

ability to hear, listen, and then actually communicate back and be 
16 

all right with saying here is what my understanding of the situation is and be able to do that. 

Ms. HEITKAMP. Just one final comment. I am thrilled that you 

are going to be at OMB. I am thrilled that you are willing to step 

up and take on this challenge, because I think you are probably the 

right woman for the job, probably the person who is going to really 

begin to bring some faith of the American public back into this fiscal process. And I want you to know that, speaking just on my behalf—but I am sure for this Committee—anything that we can do 

that helps you address the needs of this country and move this 

country forward, we look forward to working with you. 

Ms. BURWELL. Thank you, and I think you probably get a sense 

that I will probably pick up the phone and call. 

Chairman CARPER. Thank you, Senator Heitkamp. 

Senator Portman, please. Welcome. 

OPENING STATEMENT OF SENATOR PORTMAN 

Senator PORTMAN. Thank you, Mr. Chairman, and thank you, 

Ms. Burwell, for being here, and thanks for your willingness to sit 

down and walk through a lot of these issues in advance. You and 

I talked more about the job than we did about the issues I am 

going to raise today, but having had the honor of having that job, 

I agree with what you said earlier, which is OMB as the place 

where talented people want to go ought to be your goal. And you 

are fortunate because you are inheriting some really talented people. Of the roughly 500 people who were there when I was there, 

I owe them a lot. They were some of the best and brightest in public service, and they are drawn there for a reason: they care about 

government efficiency, they care about budgeting, they like balanced budgets. And so I know you will use them as great resources, 

and having been there before, you understand the importance of 

the people in the job. 

It is a tough job, and it is the only job in the Cabinet where you 

can measure your success not by how popular you are but how unpopular you are among your fellow Cabinet Members. And when 

they start to like you too much, you are not doing your job. So that 

will be a good measure for you. 

Tomorrow I will be in the Budget Committee, so we will talk 

more about the fiscal challenges we face, and hopefully the President’s budget will offer some hope tomorrow, so there will be lots 

to talk about. You are going to end up being there during an interesting time. 

But today let us talk about the M in OMB, which is, as you say, 

a really critical part of the job and sometimes overlooked, and it 

probably was the most fun part of the job for me, and I think will 

be for you. 

Senator Heitkamp and Senator Johnson have both raised some 

great ideas on the regulatory front. You said you are looking for 

ideas, ways to improve the regulatory environment. Let me give 

you three really quickly and get your responses. 

One is about having a regulatory agenda. For nearly three decades, Presidents of both parties have published their plans on new 

regulations twice a year. It is required by an Executive Order (EO) 

that was issued under President Clinton. You may have been there. 
17 

It is also required by statute, the Regulatory Flexibility Act. The 

publication in the spring and the fall is by statute. It is very important because it helps the public and it helps regulated parties to 

better understand these new rules that are in the pipeline, and 

helps on potential compliance costs, particularly for small businesses. 

The spring regulatory agenda, as the title would suggest, is supposed to be published in the spring, and again, it is under statute— 

April or May. Last year, the spring agenda never showed up despite the fact that Cass Sunstein, who was the Administrator of 

OIRA, set April 13th as a firm deadline for agencies to submit their 

spring regulatory plans to OMB. 

I think it is the first time it had not been released in decades, 

at least to my recollection. I wrote the President twice to ask where 

it was because we are very interested here in this Committee to 

look at that regulatory agenda. I received no reply. Instead, and, 

again, without any explanation, OMB simply ignored it and then 

released a single regulatory agenda on Friday, December 22, 

2012—after the election, incidentally. 

So in your briefing for this hearing, have you learned why the 

Administration chose not to issue a regulatory agenda in the spring 

or, for that matter, in the fall? And will you commit to us today, 

since this Committee is interested in this information, that you will 

produce these regulatory agendas on time as required by law and 

Executive Order? 

Ms. BURWELL. Senator, I think at the root of your question there 

are sort of two parts. One is responsiveness in terms of some of 

your interactions with OMB, and I look forward to, if I am confirmed, being responsive in terms of getting back to you, as I said, 

in terms of answering questions in the form of a dialogue, in terms 

of—— 

Senator PORTMAN. Yes, my letter was to the President, not to the 

OMB Director. But I did not hear back from the President. But do 

you commit to send us those regulatory agendas on time under 

statute? 

Ms. BURWELL. What I commit to is understanding—I do not 

know what the reasons were. As a private citizen, one of the things 

that is different than the last time that I was here for confirmation 

for a position at OMB is I was in the government. And so as a private citizen, I have not had the opportunity to be briefed on deliberations within the government. 

Senator PORTMAN. OK. I would suggest a simple ‘‘yes.’’ I mean, 

this is something that has always been done. Ms. Burwell, when 

you were there, it was done. Are you saying that you cannot commit that you will give this Committee and the American people the 

regulatory agenda that is required by law? 

Ms. BURWELL. Senator, because I do not know the reason that 

it was not done, what I can commit to do is do my best to get it 

here. Because I do not know the facts behind what happened, that 

is why I am not comfortable making a commitment when I do not 

know the facts around the issue. 

Senator PORTMAN. Really? OK. 

Ms. BURWELL. So my commitment is—— 
18 

Senator PORTMAN. Let us talk about something else, then. Cost/ 

benefit analysis. As you know, for 30 years Presidents of both parties have required executive agencies to go through this cost/benefit 

analysis. It is a bipartisan project initiated in the Carter Administration, formalized by President Reagan, again updated by President Clinton when you were there, I believe, reaffirmed by President Obama in January 2011; and a central element of that is to 

look at significant rules, at their cost/benefits, look at reasonable 

alternatives, and tailor new rules to limit unnecessary burdens. 

What are your views on the importance and impact of the OIRA 

review? Do you think it has improved the quality and cost-effectiveness of major regulations? 

Ms. BURWELL. I do think that the cost/benefit analysis is an important part of getting to some of the issues that were part of the 

earlier questions and ensuring that we understand how we think 

through that balance of providing safety, public health, and protecting our environment while at the same time balancing economic 

growth and job creation and innovation in our economy. 

Senator PORTMAN. Great. There is one major gap, as you know, 

and you and I talked about it. It does not apply to independent 

agencies, and the President has talked about that, even though 

those agencies are now responsible for about a quarter of all major 

rules and have authority over critical sectors of our economy, from 

telecom to agriculture to financial services. They are exempt from 

12866, as you know. And the economic analyses have suffered as 

a result. 

Here is a letter that in December was sent to this Committee by 

a bipartisan group of former OIRA Administrators. They said that 

the legal advisers to both Presidents Reagan and Clinton concluded 

the President has legal power to extend this requirement to independent agencies, but both Presidents chose not to do so out of deference to Congress. Many of us across the political spectrum have 

urged reconsideration of this decision. Our concern is that independent agencies typically do not engage in the economic analysis 

that we have come to expect from executive agencies. In 2003, Cass 

Sunstein actually wrote a law review article saying that the commitment to cost/benefit analysis has been far too narrow and 

should be widened to include independent agencies. 

So my question to you today is—we have legislation—as you 

know, Senator Mark Warner and I have introduced, along with 

Susan Collins, and other Members of this Committee have supported it—to close that gap, to give the President the authority to 

do what he says he wants to do. Do you think the independent 

agencies would benefit from that kind of analysis? 

Ms. BURWELL. Senator, what I would like to understand is why 

do we think the independent agencies are not doing the appropriate cost/benefit analysis and what is the best way to get that 

done, because I think that is the question, if I am confirmed, that 

I would want to understand and understand what is the best way, 

because I think at the core of the issue is we want the independent 

agencies to be pursuing cost/benefit analysis in an appropriate way. 

There is a question about whether or not that is being done, and 

then the question I would have is: What is the best way to get 

there, at the same time that we consider and respect the Congress’ 
19 

decision to make those agencies independent at various times, and 

all that comes with that, whether that is the budget process or the 

regulatory process. 

Senator PORTMAN. Well, we would like to work with you on that. 

They are not doing it because, for the most part, they are not required to do so unless there is a specific authorizing statute that 

does require them, and so this would be a requirement for them to 

follow this same rigorous discipline that other agencies are subject 

to. And, again, the President has spoken favorably of it, so I hope 

you will work with us to give you all the statutory authority that 

you need. 

I have some other questions on permitting reform and other 

ways to help on the regulatory process side, the Federal property 

that I am working with the Chairman on. I look forward to doing 

some followup questions with you on those. And, again, I look forward to seeing you at the Budget Committee tomorrow and, I believe you will be our next OMB Director, and this Committee looks 

forward to working closely with you. 

Ms. BURWELL. Senator, thank you, and thank you for your advice 

and counsel in our meeting. 

Chairman CARPER. I would just have one question of my colleague? Which seat did you prefer sitting in—the one that she sits 

in today or the one that you sit in today? 

Senator PORTMAN. It is much more fun being on this side. 

[Laughter.] 

The seat that she will have is the one I prefer. Honestly, it is 

a great opportunity, and as I said, you will be surrounded by some 

incredible public servants and have the opportunity to do, as you 

and I talked about, some truly important things for the country 

right now. 

Ms. BURWELL. Thank you. 

Chairman CARPER. Thanks for those questions. 

We have been joined by Senator Ayotte and by Senator Baldwin. 

I am going to recognize Senator Ayotte first, and then Senator 

Baldwin. Welcome. Glad you are here. 

OPENING STATEMENT OF SENATOR AYOTTE 

Senator AYOTTE. Thank you. 

I want to congratulate you on your nomination, I appreciate the 

very important position that you have been nominated for. And I 

wanted to ask you about—there was a third annual GAO report on 

duplication issued today, and it identified 31 areas where agencies 

may be able to achieve greater efficiency or effectiveness. Have you 

had a chance to review that report? 

Ms. BURWELL. I have not had a chance to review the report, but 

we discussed it briefly in Senator Johnson’s questioning in terms 

of the relationship with GAO, and I mentioned it specifically 

proactively, because I think GAO is an important part of the partnership between the Executive Branch and the Legislative Branch 

on increasing efficiency and effectiveness in government. 

Senator AYOTTE. I appreciate that, because in the report, it does 

identify particularly an area that OMB would have some oversight 

over and a role in going back to recommendations that GAO made 

in 2011 and 2012 in the appendix, updating where things are on 
20 

those recommendations. And their specific issue is the OMB guidance calls for agencies to analyze whether their information technology investments are continuing to meet business and customer 

needs and are contributing to the agency’s strategic goals. And that 

is something that the GAO has recommended that OMB take action on to prevent agencies from making duplicative investments in 

that area. And as you know from your prior experience, I am sure, 

those technology investments can really be very expensive. So making sure no duplicative investments are made across agencies in 

electronic case management, adjudication systems, and yet apparently OMB has not followed through on the GAO recommendations. 

So I know you have not seen the report, but I guess I would ask 

you to commit to addressing these recommendations if you are confirmed as Director. 

Ms. BURWELL. Senator, the Chief Information Officer (CIO) role 

is something that actually has changed since I was last at OMB, 

and I think it is actually a very important and exciting change that 

has occurred in terms of the responsibility that OMB has to work 

across government on a number of things that I think you are mentioning, that I think are extremely important. I think we need to 

move from the hundreds of data centers that we have already gotten rid of to hundreds more. 

I think we need to think about the IT part of the role of OMB 

in a couple of different ways. One is about increasing effectiveness 

and efficiency, and I think that gets to the core of what you are 

talking about with the GAO report—and I think there are many 

places—and whether using the cloud is cheaper operationally. 

There are a number of things that can be done in that space that 

I think are important. 

The second thing is transparency and transparency in terms of 

technology I think has a number of different elements to it. It has 

elements that are related to how we serve the American people and 

let them know what is being spent, but also within government, 

when you can use information technology, one department can 

know what another department is spending on things and so we 

can move toward that efficiency and effectiveness through transparency. 

And the last area that I think is very important is innovation, 

because I actually think there is great opportunity when the Federal Government has had the opportunity to move data, whether 

that is what we all use in GPS or weather. Those are opportunities 

for innovation in the government. 

So I expanded a bit on what you mentioned because I think it 

is beyond efficiency and effectiveness as we think about that position and that role and what can be done. 

One of the important things I think we need to do though, is to 

make sure when we are moving toward transparency or thinking 

about those things, that we carefully target, so that we can do the 

cost/benefit analysis to achieve whatever it is we are trying to 

achieve. 

When we think about USASpending.gov, which there are issues 

with, what is the target audience that we are talking about? Is it 

actually people who are seeking funds or the American people? Be-
21 

cause how you would design that site and how you would invest 

money in doing that I think will differ. 

Senator AYOTTE. Well, I think that certainly we need to be in a 

position where the American people can understand clearly, so as 

you look at that site going forward, I would err on the side of making sure the American people can understand how their taxpayer 

dollars are being spent. And I appreciate your taking an interest 

on this case management issue, because I think that there is cost 

savings we could achieve there, and that is obviously important in 

light of our fiscal climate. 

The one issue I wanted to ask you about that I know has already 

been touched upon is the important role you have with the Office 

of Information and Regulatory Affairs, as Senator Portman asked 

and you are responsible for reviewing agencies’ regulatory actions 

to ensure that the agency has adequately addressed all the information, risks, costs, and benefits. 

The reason I ask you about that is—how do you view your roleto-be in that regard? Because I have had numerous examples, one 

of them that I will raise to your attention is a potential rule that 

the Department of Labor (DOL) is issuing changing the definition 

of ‘‘fiduciary’’ under the Employee Retirement Income Security Act 

(ERISA) that will have a very dramatic impact on employee stock 

ownership programs across this country and many small companies 

that have this. And I use this as an example because it seems to 

me that the role of OMB in the factors that have to be reviewed, 

this happens to be a rule DOL issued, has withdrawn because of 

concerns that people have raised from the ground, and will be reissuing in July. But it seems to me that in your proposed new role 

that you have a very important position that you can raise these 

types of concerns up front so that we are not in this position and 

companies are not put in this position or, average Americans put 

in this position that are part of these plans. 

So can you let me know, first of all, how you view your role in 

that and how you will review these types of regulations to make 

sure you are fulfilling this function that we are not issuing regulations that are more harmful than helpful? 

Ms. BURWELL. Senator, the issue of how OIRA—that process of 

when things come into OIRA, which would be the process that I 

would oversee if I am confirmed as Director, is something I would 

take seriously in terms of the application of how do we make sure 

we have the appropriate voices there. 

I think the other thing that OIRA does attempt to do is to at 

least have conversations with the departments as the process is 

going forward, so when we know about concerns or that sort of 

thing, we can have those conversations as we go. 

One of the most important things I think I can do in terms of 

that OIRA process working is to make sure that I have strong relationships with the Cabinet Secretaries so that the conversations— 

first of all, it is me setting an example for how I hope that the rest 

of the department would work, but also having those relationships 

where we can each pick up the phone and call. And so that will 

be an important part of my leadership. 

I think the other thing that will be important is strong management of an OIRA team. 
22 

Senator AYOTTE. Thank you very much, and I also am on the 

Budget Committee, so I might see you tomorrow as well. Thank 

you. 

Ms. BURWELL. And I would just add on the issue, TechStat and 

PortfolioStat, two places where we are reviewing those IT projects, 

because I agree with you about the importance of those costs. And 

when I was in government before, I saw the incredible costs, and 

I have seen it in the private sector when people are trying to do 

IT changes. It can become incredibly costly. 

And so TechStat to review specific IT projects I think is a process 

that is going to catch some of those things early. And PortfolioStat 

is a means by which we look at the different pieces to make sure 

they interact well, are things that I think are very important to implement strongly and well. 

Senator AYOTTE. I appreciate it. I know my time is up, but I 

think all of us having worked in government have had an experience where there is a substantial investment in a case management program, and then it does not do what it was purported to 

do. And so that is what we want to avoid across agencies in the 

Federal Government. So I appreciate your answers on that. Thank 

you. 

Ms. BURWELL. Thank you. 

Chairman CARPER. All right. Senator Baldwin, thank you. Welcome. 

OPENING STATEMENT OF SENATOR BALDWIN 

Senator BALDWIN. Thank you, Chairman Carper, and thank you, 

Ms. Burwell, for appearing before the Committee. Welcome to the 

Committee. I join a couple of my other colleagues on this Committee both sitting on the Budget Committee and this Committee, 

and as somebody who also on the House side sat on the Budget 

Committee, I am very familiar with the importance of the role of 

the OMB Director on the budget side of things. But I was really 

pleased to see in your testimony your emphasis on what you called 

the M side, the management side of OMB, because even with the 

best intentions in the budget process, if we do not have efficiencies 

and if we do not have an effective Federal Government, our budget 

work can be for naught. 

You are nominated for this role at a very exciting time, at a tremendously challenging time for our Nation. And I think about— 

daily, as a Senator, I think about the enormous challenges that we 

face in this country. I regard them as dual or twin challenges of 

stabilizing our debt and deficit without shortchanging our future, 

but also continuing in every manner that we can to move our economic recovery forward, grow our middle class again. 

Now, under President Clinton, we showed that these two goals 

can be accomplished, and I am encouraged that you were part of 

a team that helped preside over 3 years of budget surpluses. My 

first term in the House of Representatives was spent on the Budget 

Committee, and I remember—in fact, we talked about this—people 

worrying aloud about the dangers of running surpluses. And I 

would really like to see our country get back to having that as one 

of our primary worries. 
23 

But that said, I wonder if you could just start by talking big picture and telling all of us what your priorities are for leading the 

Office of Management and Budget. What is your vision? 

Ms. BURWELL. Thank you, Senator. As I think about the priorities, the first thing I should probably say is my experience always 

is you can think a lot about them; once you get into the job, one 

will be informed by what you find when you get in the job. 

But with regard to the particulars, where I would start, I would 

start at the first level, No. 1, with regard to what I would refer to 

as regular order and relationship, and I think those two things are 

very interrelated. And regular order comes to some of the issues 

Senator Portman raised and others have raised about timeliness 

from the executive branch, responsiveness, and then flowing 

through to however I can support the processes of the Budget Committee, the Appropriations Committee, to returning to that order in 

terms of the processes. 

I think relationships are an important part of that and that is 

something that I think you have heard as a theme throughout the 

conversation this afternoon. I think that is a very important part 

of how we get there. 

The second priority, if I am confirmed, would be to use both the 

M and the B of OMB to make sure that we are doing our best to 

deliver for the American people an economy that is healthy in both 

the short and the long term. And priority one under that is, I believe, a comprehensive approach to deficit reduction, moving 

through that, how we do that, and making sure that we can meet 

the commitments that we have made over time. And a part of that 

we have discussed is on the M side that efficiency and effectiveness. 

The third priority—and we touched upon it with Senator 

Portman a bit—is the institution. I believe that because I have the 

opportunity to go back to OMB, a place where I understand a little 

bit more about the institution, gives me the opportunity to commit 

to do my best to continue to build that organization. 

Senator BALDWIN. Well, thank you. I wanted to just dovetail on 

a question that was asked a little bit ago—well, it was Senator 

Ayotte. In terms of transparency with regard to OMB’s review of 

rules, timeliness and transparency, I mean, OMB has 90 days to 

review most rules, 120 if the head of OMB and the head of the relevant agency agree to an extension. We know that some rules have 

been sitting at OMB for much longer periods of time with little information on where or why the process seems to have ground to a 

halt. So how would you approach this challenge of transparency 

and the need for the public to know? 

Ms. BURWELL. I think that there are a number of different pieces 

to that, and one of them is understanding why the rules are there, 

the ones that have been there for an extended period of time. Is 

it related to complexity or is it related to other issues? What are 

the critical path things that you can do to break those loose if you 

can? 

There is the overall: what is the timetable for rules as they come 

in and how should we think about signaling, perhaps, when rules 

come in that are of great complexity while also making sure, to 

your point about transparency, that we are actually commu-
24 

nicating, that the expectation is that because of the complexity of 

the rule, that is what we are doing. 

And so I think it is—a little bit of this is about getting to communicating clearly where there are issues and what those issues are. 

I think with regard to transparency and the American people, I 

think there are some tools that we are using with regard to the 

ability for people to comment. I think that is a part of transparency, using technology as a tool there. And what we need to understand is what is not working about that. Is it who can access? 

Where are the parts? And so if I am confirmed, I hope to, one, look 

closely at the examples that you are giving, understand why that 

is happening, and then as a general point, think through how we 

can communicate more quickly and often where we see these things 

happening. 

Senator BALDWIN. Thank you. 

Mr. Chairman, I want to get a last question in the record. Feel 

free to followup as my time will elapse before you may have the 

chance to fully respond. But in your testimony, you stated how important it is that we are operating the government in the most efficient and effective manner possible. And I agree, and I believe that 

one mechanism to do this is the use of something called Energy 

Savings Performance Contracts (ESPCs). These contracts allow 

Federal facilities to improve their energy efficiency using private 

sector investments with a guarantee of energy savings. This contracting vehicle has been supported and encouraged by the last 

four Administrations, but is consistently challenged because it is 

not a typical or traditional contracting vehicle. 

So I would like to hear, either now or in the days to follow, your 

position on the Energy Savings Performance Contracts, and will 

they be encouraged by the OMB under your leadership? 

Senator CARPER. Ms. Burwell, feel free to go ahead and respond 

at this time. 

Ms. BURWELL. Thank you. With regard to the issue of the energy 

saving contracts, having been in the private sector and seen some 

of the opportunities that exist with regard to the type of investment and the return on that investment that you can achieve over 

a period of time, the concept of having means by which we as a 

government can get those investments made, get the savings, 

which I think is about efficient and effective government, and also 

a contribution to the environment, I think those are very important 

concepts. And how one thinks about application of those, I think at 

OMB that is the one thing that I would want to make sure I understand. 

I am enthusiastic and excited about energy savings, how one determines that return on investment over a period of time, and ensuring that those investments in the way the contracts are done 

really do focus on the energy element. 

So those are the kinds of things that I would like to be able to 

consider, if I am confirmed, in looking at this. 

Senator BALDWIN. Thank you. 

Chairman CARPER. Thanks. 

Senator Levin has joined us, and I am going to recognize him 

next. 
25 

OPENING STATEMENT OF SENATOR LEVIN 

Senator LEVIN. Thank you very much, Mr. Chairman, and welcome to our nominee. I know you have talked about the deficit and 

how to go about addressing it and how you would recommend that 

we proceed with deficit reduction, whether we do it just by looking 

at the spending side or whether we also look at the revenue side 

as well. 

Can you give us your general view as to whether or not there 

ought to be either an exclusive focus on spending, which is what 

the House is proposing to do, or whether we have a more balanced 

approach, which would include both additional revenues and targeted spending reductions? 

Ms. BURWELL. Senator, it is my belief that in an effort to get to 

the levels of deficit reduction that I believe we need over the long 

term, we need to have a combination of spending reductions as well 

as revenue to get to the numbers that I think we are trying to do, 

because I think the most important thing is that we continue on 

that path of reduction of the debt-to-gross domestic product ratio. 

We have started on that path. We need to continue on that path 

and think about how we do that in a way that connects to the 

American people. 

Each of these numbers and things that we talk about are not 

ends in and of themselves. They are related to people, their lives 

and their jobs, and things like our Nation’s national security. 

Senator LEVIN. You talked about GDP. The percentage of our 

GDP that comes to the Federal Government in the form of revenues, we have been told, is at a historic low, something like 14 or 

15 percent. Typically it is about 18 percent or 19 percent of GDP. 

Are you familiar with those numbers and that approach to looking 

at revenues as a percentage of GDP? 

Ms. BURWELL. Yes, sir, I am familiar with the different numbers 

at different points in time. 

Senator LEVIN. And is it true that we are at a very low point in 

terms of revenues when you look at revenues as a percentage of 

our economy, of our gross domestic product? 

Ms. BURWELL. Yes, sir. The numbers when I was in the Clinton 

Administration, on average in the 3 years that we balanced the 

budget, it was 20 percent. 

Senator LEVIN. And do you know what they are now? 

Ms. BURWELL. They are in a much lower range, in the teens, 

around, as you stated—— 

Senator LEVIN. Is it about 15 percent? 

Ms. BURWELL. Around 15 percent. 

Senator LEVIN. Something like that. 

Now, in terms of the corporate contribution, corporate tax payments as a contribution to the total revenues, corporate profits are 

now at an all-time high. Corporate taxes now account for a historically low percentage of all Federal revenues. Something like 9 percent, I believe, somewhere between 9 and 10 percent of total revenues coming into Uncle Sam come from the Corporate world. 

Do you believe that additional corporate revenues need to be part 

of the revenue picture, which in turn needs to be part of deficit reduction? 
26 

Ms. BURWELL. Senator, while I would certainly defer to my colleagues at the Treasury Department, having served at the Treasury Department on matters of tax, the broad issue of corporate tax 

issues, I think that I would—what I believe is that we can broaden 

the base and that we can work to change loopholes in the corporate 

area. 

Senator LEVIN. And if we do go after corporate loopholes, particularly the ones which are, in my judgment, egregious, indefensible, 

even if there were no deficit—I am talking about the way in which 

revenue to corporations here has been transferred to offshore tax 

havens, for instance, to avoid paying taxes altogether, and there 

are a number of other loopholes which I think are egregious and 

are bad and unjustifiable and serve no economic purpose, even if 

there were no deficit. But assuming there are such loopholes, assuming for the purpose of discussion that there are loopholes which 

should be closed, not just in order to broaden the base or not just 

for simplicity, but because they are unjustified, OK, on that assumption do you believe it is appropriate to look at the closing of 

those loopholes as a revenue raiser to reduce the deficit? 

Ms. BURWELL. Senator, the question of overall revenues and how 

one thinks about the corporate piece as well as the individual piece 

I think needs to be thought of in the context of a broader package. 

Senator LEVIN. OK. Let me ask you about the independent agencies—first of all, do you support the concept of independent agencies, meaning agencies that by statute have a measure of independence from the President? 

Ms. BURWELL. Yes, sir, I do. 

Senator LEVIN. And would you agree that independent agencies, 

including those involved in financial regulation and enforcement 

and consumer product safety need to have that degree of independence? 

Ms. BURWELL. The Congress has spoken to that matter, and that 

is something that, if I were confirmed, would want to support the 

implementation of. 

Senator LEVIN. And is it your understanding that independent 

agencies now have cost/benefit analyses that are adequate? 

Ms. BURWELL. Senator, that is a point we have had the opportunity to discuss earlier today, and that I think is a point of question in terms of the quality of that cost/benefit analysis. 

Senator LEVIN. So you have not reached a conclusion as to 

whether the current cost/benefit analyses that independent agencies use are adequate or inadequate? 

Ms. BURWELL. No, sir, I have not. I have not had the opportunity 

to be exposed to, I think, some of the information that would be 

important to make that determination. 

Senator LEVIN. I hope when you look at that you will remember 

the answers that you gave relative to their independence. Will you? 

Ms. BURWELL. Yes, sir. I think the question of independent agencies and cost/benefit analysis and the question of how and who determines that cost/benefit analysis is—I will repeat what I said earlier. I apologize for repeating. But I think what is important is to 

understand, I think what everyone wants is cost/benefit analysis 

that is appropriate and rulemaking that is appropriate and of high 

quality in the financial area and in this area of the independent 
27 

agencies. And the question that I have is: What is the best way to 

get there? And it was raised that there are legislative approaches, 

as one way, and what I would love to do is understand what is not 

happening and what do we think is the best way to achieve that. 

Senator LEVIN. I have been a strong supporter of cost/benefit 

analyses since I came here, and as a matter of fact, believe it or 

not, part of my campaign to get here related to the question, that 

question. My wife never thought I could turn that into a campaign 

issue, but I did—and got here anyway 34 years ago. But my point 

here is that I hope that—this is going to be a big issue in front of 

this Committee. It was last year, and I think it probably will come 

up again. And I think before we take that up, Mr. Chairman, I 

would hope that we would get our new OMB Director’s opinion as 

to whether or not the cost/benefit analyses that are currently being 

used—and some people forget that—by independent agencies are 

adequate or not. So I hope she will get into that issue promptly 

upon her confirmation, which I think all of us or most of us look 

forward to, and we commend you and congratulate you on your 

nomination. 

Thank you, Mr. Chairman. 

Chairman CARPER. Thank you. I have just a quick question. 

When were you first elected to the Senate? What year was that? 

Senator LEVIN. Before you were born. [Laughter.] 

Chairman CARPER. Senator Levin was recalling how he was back 

in Michigan during the break, as he knows, and he was gracious 

enough to host me and take me up along the northern border of 

our country with Canada, which I think has about almost 1,000 

miles of water border. I learned a lot from him, and it was an interesting and enjoyable experience. Thirty-four years ago when he 

was elected to the Senate for the first time, the hotel that I stayed 

in was the hotel where they had their election night celebration. It 

was closed later on for like maybe 20 years, and has since been refurbished and reopened. I think it was a Westin hotel. His last, 

most recent election night celebration was back at that same hotel 

some 30 years later. 

Senator LEVIN. Proof of the comeback of Detroit, by the way. You 

do not read much about the positive side of the comeback. 

By the way, I was elected—I better quickly look over at Senator 

Pryor here. When I was elected, there was another Pryor who had 

just been elected to the U.S. Senate, a Pryor who we love and 

whose wife, Barbara, we love as well. All the Pryors we love. 

Chairman CARPER. Yes, that is for sure. 

Senator LEVIN. The prior Pryors and the current Pryors. [Laughter.] 

Chairman CARPER. Thank you, Senator. 

Ms. BURWELL. Thank you, Senator. 

Chairman CARPER. All right. Senator Pryor welcome aboard. 

OPENING STATEMENT OF SENATOR PRYOR 

Senator PRYOR. Thank you. And speaking of war stories, I know 

you are a Senator Byrd fan, and welcome to the Committee, and 

we appreciate you being here, and West Virginia roots, and maybe 

my favorite Senator Byrd story is the story that Senator Carper 

told me several years ago. He is from West Virginia. He was born 
28 

in West Virginia. And he was driving through West Virginia and 

seeing some of his family. And he gets on his cell phone, and he 

calls Senator Byrd and says, ‘‘Senator Byrd, you will never guess 

where I am.’’ He says, ‘‘I am in West Virginia on the Robert Byrd 

Highway.’’ And Senator Byrd said, ‘‘Which one? ’’ 

Ms. BURWELL. ‘‘Which one? ’’ [Laughter.] 

Senator PRYOR. Which I always thought was very fitting for Senator Byrd. I love that. 

Listen, let me talk to you, if I can, about kind of a well-worn 

phrase that we hear in Washington that people love to talk about 

but we do not ever seem to do enough about, and that is the phrase 

of ‘‘waste, fraud, and abuse.’’ We hear that phrase all the time. We 

all talk about it from time to time. Everybody loves to talk about 

waste, fraud, and abuse, but it just seems to me that we as a government, as a Congress, as an Administration, we do not do enough 

about it. And I feel like OMB is a place where things can be done 

about that. 

One thing I am curious about is when you see CBO or GAO or 

some think tank or somebody, whoever it is, that comes out with 

these studies and these analyses of how we are wasting money, 

how we can be more efficient, how we can do things better, and 

that really kind of covers the waterfront. 

Does OMB take those and sort of take those to heart and try to 

allow those to shape their policy and their priorities and their reform efforts? Or does OMB just defer to Congress and say, well, 

Congress needs to fix that, that is not our headache? 

Ms. BURWELL. The GAO report that came out today will be an 

important contribution to how OMB thinks about those priorities, 

and I think the prioritization comes through both conversations 

and reports. Certainly this Committee and actually the Chairman 

and the Ranking Member have both focused on these issues of 

waste, and those are lists that OMB does think about and consider, 

and whether that is how some of the progress has been made on 

improper payments, while it is not enough, improper payments 

have gone from 5.4 to 4.35 percent. A hundred billion is still too 

much. We understand that. 

But with regard to that question of prioritization, there are a 

number of inputs that are about how we look at finding good opportunities that are both good at cost saving, increasing the value for 

the taxpayers’ money, and achievable, which I think is an important consideration about how one thinks about prioritizing. I think 

we all want to get rid of waste, fraud, and abuse, but how you go 

about thinking about what we can achieve, because I think what 

is important is points on the board. And so that is how I think 

about that prioritization, and I think OMB uses a number of these 

tools to do that. 

Senator PRYOR. I appreciate you saying that. I know earlier, Mr. 

Chairman, I missed the questioning by Senator Johnson and Senator Heitkamp as well about OIRA, and one of the things that I 

am concerned about with OIRA is that their staffing level is at an 

all-time low, and, it seems to me that an agency is really not going 

to be fully effective if they are not fully staffed. It is one thing to 

have a vacancy here or there, and that can be hard enough, but 
29 

really, it seems like that agency, that office, cannot function anywhere close to where it needs to. 

So what can you do, what can we do to try to make sure they 

are fully staffed and fully equipped to do their important tasks? 

Ms. BURWELL. Senator, if confirmed, one of the first things that 

I would want to do is think about the team. When I enter into organizations, one of the things I think is most important is the team 

and what you have and what you do not have. And if confirmed, 

that is something very quickly—the team across OMB, I think 

there are a number of positions in places and how does one think 

about that to make sure we put a strong team in place across the 

board at OMB. And so that would be a priority. 

With regard to the second part of your question, which is, what 

can we do, one of the things that I hope is that we can have a dialogue and I can have an opportunity to call Members of this Committee for support and help. And as long as I am articulate about 

what the needs are and what those needs would produce in terms 

of some of the results that we have been talking about. So there 

is a part of this that I own and then a part of it that I would look 

forward to working with the Committee to make sure we get the 

reality of good people doing good work. 

Senator PRYOR. Right. To change gears on you, one of the things 

that you know better than most people—is that if you look at all 

of our Federal spending, roughly about two-thirds is mandatory 

spending or entitlement spending. And here in the Congress, we 

have tightened up on our discretionary spending quite a bit with 

the Budget Control Act of 2011. But we have found it difficult to 

really pursue the rigorous reforms we need and sensible reforms 

we need in our entitlement programs. And I would hope that would 

be a priority for the Administration, and I hope that we would do 

that in a bipartisan way. I think that is the only way you get it 

done. 

But let me, if I may, Mr. Chairman, just close with something 

that we talked about yesterday in my office, and that is, I have 

been here for 10 years, going on 11, and for 9 of those 10 years, 

we basically have not followed the Budget Act. Either we did not 

get a budget done and/or we did not get our appropriation bills 

done; or we did an omnibus or a continuing resolution (CR) or a 

mini-bus, or some combination. I think 9 out of the 10 years basically we have had to do that. And that is evidence to me that the 

system—the law we have on the books right now is just not working. And, my guess, it is probably the politics more than anything 

that is preventing it from working. 

But I would hope that the Congress and the Administration 

would work together to possibly, if we need to, go in and rewrite 

the Budget Act. Apparently Senator Byrd wrote it back in the early 

1970s, after a couple years of false starts and trying to get it done. 

And that is one thing we talked about yesterday. And I am not asking for a commitment out of you or the Administration on this, but 

I would hope that you all would consider making budgeting—and 

that includes not just the dollars but the process of priority, so that 

we can have a better way to budget, to account, and to check on 

the effectiveness of government spending. 
30 

I know that we are going to be in a period of budget tightening 

over the next 10 years, and, I think if we have a budget process 

that works better, that makes the whole thing work easier. 

I do not know if you had any comments on that. 

Ms. BURWELL. Well, Senator, I probably should have been studying a little more last night for my hearing today, I have to say your 

question stimulated—I spent quite a bit of time last night just 

starting to think about the point. And the thing that I was trying 

to focus on—and I think that is something that would be very important to have conversations and dialogue with the Congress, is 

why is it not—what are the elements that are not working? Because the question is: What can process solve and what can process 

not solve? Because I think that is what you were getting to, is the 

question of is it the structure and the process that is wrong, or 

what? 

And so that was something that I did start to at least reflect and 

think upon, and since I have not been here, it is something, 

though, that I will look forward to learning more about why people 

think that the process is not working and what are the critical 

things, and then how do you think about changes to process that 

would help that or support the things that are not currently happening. 

Senator PRYOR. Mr. Chairman, that is all I have. Thank you. 

Chairman CARPER. Thank you Senator Pryor. 

I have not asked any questions yet, and I am going to do that 

at this time. While Senator Pryor is still here, he raises, again, the 

issues of waste, fraud, and abuse and efficient spending. He said 

we do not do enough about it, we never seem to do enough about 

it. And this is a huge enterprise of our government. It is the largest, most successful Nation in the world, and we are spending all 

over the country and all over the world in different ways, and it 

is hard to get our arms and our heads around it. 

But as we seek to put our Nation back on a more fiscally responsible path, it is not just the responsibility of the OMB Director. It 

is not just the responsibility of the executive branch, as we know. 

It is not just the responsibility that falls in our laps as well. It is 

a shared responsibility. 

One of the great things about serving on this Committee with 

Senator Pryor, Senator Coburn, Senator McCain, and others is that 

we actually have the opportunity here—this is an oversight Committee. We deal with homeland security in a big way and have for 

about 10 years. But it is also—its history is as an oversight Committee. And we have an opportunity here to perform really effective 

oversight. Almost every time we have an agency that comes before 

us and testifies, whether it is Defense or Homeland Security, 

whether it is Health and Human Services (HHS), whomever it 

might be, I always ask them at the end of the hearing ‘‘What do 

we need to do better to help make sure that we spend our taxpayer 

dollars more effectively? ’’ Almost without exception, they say, ‘‘Do 

more oversight.’’ 

That is why we try to have four Subcommittees. They are basically oversight Subcommittees. The full Committee, it is largely an 

oversight Subcommittee that is appended to this huge Homeland 

Security and Governmental Affairs responsibility, too. But we have 
31 

the ability to leverage the capability of one Committee, and we do 

it by working with GAO. Their high-risk list comes out every 2 

years, high-risk ways of wasting money, and we almost use that as 

our to-do list. We have the opportunity to work with you, your 

predecessors, with your team. We have the opportunity to work 

with all the Inspectors General (IGs), and I might just say there 

are about six or seven departments that do not have an Inspector 

General. We have Acting Inspectors General. It is not a good situation. We need people that are confirmed. We need good people. And 

when the Administration nominates, we need to confirm them; or 

if not, if they are totally incapable, then we need to make that 

clear as well. 

We had the opportunity to not only coordinate and cooperate and 

collaborate with GAO, OMB, and the Inspector Generals, but also 

there is a bunch of nonprofit groups around the country that basically want to do what we want to do. They want us to stop wasting, 

and start effectively spending taxpayers’ money. 

I think we have the opportunity here, Democrat and Republican—this is not a very partisan Committee, as you know—to set 

aside politics and just figure out how we can get a better result for 

less money in almost everything that we do. 

I am struck by the number of people who have said to me, in recent months, given my new responsibilities in this Committee, people have said, with regard to having to pay more taxes, even as we 

approach April 15th, people have said, ‘‘I do not mind paying more 

taxes. I do not want you to waste my money.’’ That is what they 

say. ‘‘I do not mind paying more taxes. I just do not want you to 

waste our money.’’ That is our challenge. And it is not just our responsibility. It is a shared responsibility. We look forward to working with you and your team. 

I want to followup on what Senator Pryor said. I want to go back 

in time about 15 years, and you were in the Clinton Administration. Bill Clinton was President. And I think, as I understand it, 

he asked Erskine Bowles to lead an effort with the Republican 

House and Senate to see if we could reduce the budget deficit and 

maybe even balance the budget. And Erskine was asked by the 

President to essentially lead an effort within the Administration to 

see if we could not find common ground to get us to a balanced 

budget or a more balanced budget. 

Would you just kind of go back in time, walk us back—I think 

you were in the White House at that time. Walk us back in time 

to the dynamic that existed. Why were we successful? We had a 

very strong economy. We do not now, but it is strengthening, I 

think. But what was the dynamic that enabled us to move from 

really substantial deficits, $200 to $300 billion, to a balanced budget four—not one but four in a row? What was that dynamic? And 

how do we learn—what lessons are replicable or transferable from 

that experience to where we are today? 

Ms. BURWELL. So one of the things that I think happened at that 

period in time is that when we saw that you actually could 

achieve—that it was within reach, you started understanding that 

when you saw the numbers that it was within reach, a balanced 

budget was in reach, and how one thought about what to do. And 

that conversation was put in terms of the long-term commitments 
32 

that we had, thinking about the economy in the short and the long 

term. And it is probably a phrase that some may not remember, 

but there was something called the ‘‘Social Security lockbox.’’ And 

the reason that came about was the idea that what we wanted to 

do was to start paying down, because by starting to pay down, you 

were eliminating the debt at that time, what you were doing was 

creating the space and ability to make sure that we as a Nation 

can meet some of our long-term commitments and the commitments right now that we are very focused on in the entitlement 

space. I think that was an important part. 

But with regard to the negotiating and how we actually got 

there, which Erskine was the leader of the team at that point in 

time, there are a couple elements that I think I learned from. One 

was honesty and integrity in process, your best to be able to have 

a relationship where you could pick up the phone and call and say 

what you cannot do and what you can do and it be respected that 

it is a confidential matter that this is a part of what we can do to 

build the trust to get there. 

I think a second thing that was important is prioritization and 

using the processes to create that prioritization. When one reflects 

on the fact of what Senator Pryor said, that we have not used the 

budget process in its full over such an extended period of time, that 

is the means by which we as a Nation have to do the tradeoffs. 

Otherwise, things come on one-off. And when things come in their 

pieces one by one, it is much harder than when you put it in a 

package. Why does everyone suggest Base Closure and Realignment Commission (BRAC) processes for all kinds of decisionmaking? It is because when we bring it all together, that is when 

we have to act as a Nation, not as individuals. Of course, you need 

to represent your district and your State, but also that overlay of 

representing the Nation together. So prioritization was a second 

element. 

Then the third element in terms of what I learned was listening—listening and trying to really hear and understand, knowing 

what you need—and that was part of your own prioritization, but 

listening to understand others. So those are some of the lessons 

from that period in time. 

Chairman CARPER. We have an interesting dialogue here in the 

Congress and the Senate. I think we are getting along better in the 

Senate than we have in a while. I think they still have their struggles in the House, but I am encouraged by the mood here in the 

Senate and our ability to find common ground, for example, on the 

spending plan for the balance of the year, the continuing resolution, and a robust debate, not a consensus, on a budget resolution 

for the next 10 years, but just a very good, spirited, and healthy 

debate nonetheless. 

When we say to our Republican friends, we need more revenue, 

we go back to those 4 years when we had balanced budgets, and 

if we look at revenues as a percentage of GDP, it was about 19.5 

to 20.5 percent for each of the 4 years. Last year I think it was 

closer to 16 percent. Even with the fiscal cliff revenue package 

adopted, I think we will only be up to about 18 percent of Federal 

revenues as a percentage of GDP by the end of this 10-year period. 
33 

We say to our Republican friends, well, we need more revenues 

if we are serious about really balancing a budget or coming close. 

They say, well, we need some entitlement reform. To his credit, the 

President has said what we need is entitlement reform. He said we 

need entitlement reform that saves money and that saves these 

programs for the long haul. And I will add these words, but I think 

they are certainly felt by him. As we do that, we need to look out 

for the least of these in our society. I totally agree with that. 

I spent some of the recess we have just concluded on the road. 

I mentioned earlier I was up along the Canadian border with Senator Levin and others. I also went over to Minnesota and went to 

a place called Rochester, and Rochester is where the Mayo Clinic 

is. One of the things I have done in the last couple of years as a 

member of the Finance Committee—with one of my other hats on, 

Medicare and Medicaid oversight—is to find out how do they get 

better health care results for less money at Mayo? How do they get 

better health care results for less money at the Cleveland Clinic, 

which covers most of northern Ohio? How do they get better health 

care results for less money at Geisinger, which covers a big part 

of central Pennsylvania? I have been out to California and spent 

time with folks at Kaiser Permanente asking the same kind of 

questions. And I spent some time at UnitedHealth while I was in 

Minnesota last week. 

If we do not do something real and substantial on figuring out 

how to get better health care results for less money or the same 

amount of money in Medicare, we are doomed. 

We had Alan Blinder who came and testified before the Senate 

Finance Committee over a year ago now, about a year and a half 

ago, and he and a panelist were before us. Alan Blinder is a former 

Vice Chairman of the Federal Reserve when Alan Greenspan was 

our Chairman. He is now back at Princeton teaching economics. I 

said to him, ‘‘Dr. Blinder’’—he mentioned in his statement, he said, 

‘‘The 800-pound gorilla in the room on deficit reduction is health 

care. Unless we do something about the cost of health care, reining 

that in, we are doomed.’’ 

And when there came a chance for us to ask questions, I said, 

‘‘Dr. Blinder, you just said in your statement the 800-pound gorilla 

in the room on deficit reduction is health care. What do you recommend we do? ’’ And he thought for a moment, and he said—I will 

never forget what he said. He said, ‘‘I am not an expert on this 

stuff. I am not a health economist. But here is what my advice 

would be to you.’’ He said, ‘‘Find out what works and do more of 

that.’’ 

That is all he said. ‘‘Find out what works and do more of that.’’ 

I will never forget him saying that. And it applies not just to health 

care costs, Medicare and Medicaid. It really applies to pretty much 

everything we do in the Federal Government. Find out what works 

and do more of that. Find out what does not work and try to do 

less of that. In a resource-constrained world, we especially need to 

do those things. Others have raised with you the issue of duplication. You and I have talked a little bit about that. This is something Senator Coburn is especially passionate about. 

Sometimes it makes sense for us to have duplication, for example, in training programs, maybe we want to train veterans, maybe 
34 

we want to train people that are disabled or we want to train people who are coming off of welfare. It is understandable how you 

would have different training programs that might cover different 

parts of our population. But we have to figure out which ones are 

working and do more of those. The ones that are not working as 

well, either end them or fix them. That is the way I look at it. 

With that having been said, this is kind of an open question for 

you, but just sort of reflect on those thoughts that I just shared 

with you, and anything that comes to mind for you to guide you 

in your efforts and, frankly, to guide us and help us to work together on this. We have to figure out a way to do this together. Tomorrow the President’s budget will come out. We welcome that. I 

am encouraged to think that it may look a little bit like a grand 

compromise, which I am anxious to try to embrace and hopefully 

embrace with others, including Dr. Coburn. Please. 

Ms. BURWELL. I would focus on the point you raised, which is the 

issue of mandatory spending as part of what is driving the major 

part of the issue, is one that deserves great focus because it is so 

much a part of the problem. And as we go to that health care point, 

one of the things that excites me most about what you said with 

regard to the examples at Mayo and Cleveland, some of which I 

have learned a little bit about, is that what you described actually 

as a part of what I believe is so important to the solution because 

it is not simply about government spending, it is about what is 

happening in the overall economy on health care spending. 

And so when I think about the issues, while there will be a spectrum and a continuum of things that need to be done so that we 

can make progress on the costs of Medicare over time as a Nation, 

the things that are the best because they put us on a positive cycle 

and not just the government but the private sector are those things 

that bend the cost curve. And what was exciting about what you 

said was you were focused on the things that they were doing that 

are actually bending the cost curve, changing the cost structure. 

And examples that I have experienced, I had the opportunity to 

be on a university health center board when I was in Seattle and 

saw the institution trying to implement information technology, so 

using it in the office. And so it was part of the transition in the 

costs and figuring out how to change behaviors, because it means 

changing behaviors in a doctor’s office. And then now that I am in 

Arkansas, I have the opportunity as part of the hospital system I 

am in, the Mercy system, it is fully done. 

And so I am able to receive the results of my children’s tests on 

my e-mail at night. There is not a nurse that has to call so that 

I will know if the child has X or Y and know what the followup 

steps. If it is appropriate, I get a call, but you think about the efficiencies that are created, and the quality. I have all that information in one place. If I want to log on right now, I can see all the 

tests. Also, in terms of the quality and cost savings, when I go in, 

whether I have been to any part of the Mercy system, they can pull 

up every test I have had. They know I had the flu. They know that 

information. And it just creates incredible efficiencies. 

So those are the types of things, as I think about, it is an incredibly important issue, like to focus on the things that can help both 

the private sector and government, because of the cost shifting and 
35 

the bending of that cost curve. So that is how I start to think about 

those issues. 

Chairman CARPER. Good. Sometimes I tell my colleagues that I 

wish—and others, I wish I had only one issue to focus on, and that 

is health care and to figure out how do we get better health care 

results for less money because it is so important for everything we 

do, in terms of a vibrant economy, being able to compete with other 

nations like Japan where they spend half as much, 8 percent of 

GDP for health care. We spend 16, to 17 percent. They get better 

results. They cover everybody. How can they be that smart and we 

be that dumb? 

But what I have sought to do is to see where there is consensus—I mentioned a number of major health care providers that 

are doing really exciting and smart things with respect to the delivery of health care. We have also invited health economists and others to come in just to meet with my staff and me and some of our 

colleagues. When looking to find where these circles overlap, concentric circles overlap, and it seems like among the smart things 

that we hear about are, No. 1, figure out a way to get away from 

the stovepipe delivery. One of the ways to do it is electronic health 

records. We have something in addition to that called the Delaware 

Health Information Network in my State, which complements electronic health records, in order for providers to function not as isolated stovepipes but as a team. 

Second, prevention and wellness are key. Obesity is literally killing us, literally and figuratively. A third of our population. Most 

of them do not realize they are obese, that their families are obese, 

and what the consequences of being obese are. If you look at obesity and tobacco use, you look at end-of-life care, a tough issue, but 

one I think that we need to come to grips with in a compassionate 

kind of way, the opportunities are just enormous for us to provide 

better care and for less money. 

Even with respect to the issue of defensive medicine, out of the 

University of Michigan—they played a tough game last night 

against Louisville, who also have come up—I am an Ohio State 

graduate, so it pains me to say this, but they came up with a really 

good idea a number of years ago called ‘‘Sorry Works,’’ you may 

have heard of, at the University of Michigan, you are my doctor 

and I am your patient, you perform a procedure, screw it up, I 

know it, you know it, and before I can sue you, we have the opportunity to meet as two human beings. You can apologize, offer financial remuneration for my discomfort, pain and suffering, loss of 

wages and so forth. Nothing that you say can be used against you 

in a court of law. And I can accept or reject it, but that conversation takes place and it reduces dramatically the incidence of medical malpractice lawsuits. They also found out that it reduces the 

incidence of defensive medicine, and it leads to better health care 

outcomes. That is the University of Michigan, a demonstration, if 

you will, for a number of years, called ‘‘Sorry Works.’’ That idea has 

been taken and put on steroids, up in Illinois by a fellow named 

Tim McDonald, doctor, lawyer, and he has a project called ‘‘Seven 

Pillars’’ which really takes that idea of ‘‘Sorry Works’’ and puts it 

on a larger scale. We have 2 years of excellent data, and it demonstrates, conclusively that we can reduce the incidence of medical 
36 

malpractice lawsuits, reduce the incidence of defensive medicine, 

and they demonstrate better health care results. I mean, it is the 

trifecta! And it is the kind of idea that we want to be able to spread 

across the country. The Administration supported our efforts. We 

support their efforts, too. Take ideas like that that work and 

spread them like wildfire throughout America. And take ideas like 

Seven Pillars, bring it to Delaware and other States. But those are 

all parts of the solution. 

As we focus on better results for less money or the same amount 

of money in health care is one that I think has great potential for 

us, and we need to particularly focus on that. 

In the past, you worked for a little bit, sometime in the 1990s, 

I think, at McKinsey & Company, a management consulting firm 

with a great reputation. Any lessons learned from that experience 

for you that you bring to your current responsibilities, if you are 

confirmed? 

Ms. BURWELL. In terms of my McKinsey experience, one of the 

most important things I think I learned was client service, which 

is a topic that has come up in a number of different ways in this 

conversation, and the idea of responsiveness and listening to the 

client. 

More broadly, I think McKinsey was the start of some lessons 

that I have had the opportunity to learn when in the private sector 

that are related to things like when thinking about how to use an 

organization to address a problem, think about strategy, structure, 

and people. 

A second lesson is clear and measurable goals for impact, and so 

that is a part of that first one, but really articulating what is it we 

are trying to achieve and really deeply focusing on impact. I think 

you heard a little bit of that when I was talking about what are 

the targets that we are trying to use, what is the impact we want 

to achieve as we think about transparency. Transparency in and of 

itself is a positive thing, but is it the outcome that we are looking 

for? So that measurement and focus on impact would be the second 

lesson that I think I have learned. 

And the third—and this is an extension for McKinsey through 

my current role—is the importance actually of culture and that 

leaders actually drive culture, and that often culture is as important a part of achieving the types of things we are talking about 

in terms of cost savings, efficiency and effectiveness, creating a culture and an institution of that. They are as important often as the 

rules, because sometimes they get you more, because if people are 

thinking about it and being a part of it, they consider it what they 

do, they take pride in making things the most efficient and effective. They take pride. It is part of what they do. And so this issue 

of culture I think is one that you cannot overestimate how important it can be to achieving whether it is a healthy, thriving OMB 

or the types of cost savings and efficiencies that we are talking 

about that we think are so important. 

Chairman CARPER. It is ironic that you would mention that. 

When I was a kid growing up in West Virginia, in Beckley, in Hinton, later on in Danville, Virginia, my dad used to say to my sister 

and me—we would have chores to do in the house, in the yard, and 

in our garden. And he was always saying to us, when we did not 
37 

do our chores very well, he would say, ‘‘If a job is worth doing, it 

is worth doing well.’’ 

He said it often. He was an old chief petty officer in the Navy, 

tough as nails. He did not say it nicely. But he said it a lot, and 

one of the things, my takeaways from that experience was if a job 

is worth doing, it is worth doing well. And I like to say everything 

I do I know I can do better. If it is not perfect, make it better. And 

I talk a lot about culture. Believe it or not, in my role on this Committee, I talk a lot about culture. And we have in too many cases 

the culture of spendthrift in Federal Government, and we need to 

replace that—with culture of thrift. Everything we do, say, ‘‘How 

do we do this better? Is there a way to do this better, provide better customer service, do it in a more cost-effective way?’’ So that 

when people say, ‘‘I do not mind paying more taxes, but I just do 

not want you to waste my money,’’ then they will say, ‘‘Well, things 

are different. We have a new policewoman on the job at OMB and 

some new leadership on this Committee as well. Culture, I think 

you are right, it is just hugely important. 

I asked you about how your work at McKinsey has helped you, 

and you kind of morphed into, I think, responding how your time 

both at the Gates Foundation and Walmart has helped prepared 

you for this job. Is there anything you want to add in terms of your 

foundation work with Bill & Melinda Gates and Walmart as it 

helps prepare you for this work? 

Ms. BURWELL. I think the other element that the time that I 

have spent at both the Bill & Melinda Gates Foundation and the 

Walmart Foundation has done in terms of preparation is my experience around grantmaking, and that has two elements to it that 

I think are helpful and important. 

One is that I spend much more of my day saying ‘‘no’’ than ‘‘yes.’’ 

There are many wonderful things that are happening in the world, 

and even a foundation as large as the Bill & Melinda Gates Foundation, the vast majority of requests are actually noes, and so that 

experience of how to respect that there are incredibly wonderful 

things going on that people are coming to you about, but saying no 

in a respectful way, respectful of their time, respectful of their 

ideas and their energy. And so I think that is an important part 

of the job. 

The second thing I would say is actually doing grantmaking, how 

one thinking about spending money for impact, and that experience 

is about what is the strategy, how does this spending connect to 

that strategy, how am I clearly focused on impact, what are the 

strengths and weaknesses of what I am looking at? And on grants, 

I would send back—if someone sent me a grant report or a proposal 

for a grant and it did not have weaknesses, it would go back, because if you cannot articulate the weaknesses—I do not believe 

that there is any thing that really does not have weaknesses. And 

that is part of that quality management for impact, not just recognizing the strengths but the weaknesses. 

And so I think the grantmaking experience is one that I think 

is relevant to the work that we do every day at OMB. 

Chairman CARPER. All right. As you have been briefed by OMB 

staff, what has stood out as maybe some of the areas where you 
38 

think or others think that our Federal Government has made some 

progress since you last served? Just mention a couple. 

Ms. BURWELL. Since I was last here, I actually have seen good 

progress on some of the issues on the M side, certainly not enough 

but good progress. And I would mention something that I think is 

important to this Committee, which is the Government Performance and Results Act (GPRA) modernization. And so when I was 

here before, GPRA was a box-checking act to try and put in place 

that type of strategy so that governments commit to the strategic 

approach of their work and set clear goals that they work against. 

And I think that has advanced in terms of how the different departments are doing that, and that is a place where I have seen 

change. 

I mentioned earlier in the hearing the issue of the CIO and how 

we think about technology as a tool both that we can think about 

the opportunities with regard to efficiency and effectiveness, transparency, and not forgetting innovation, that it is an important part. 

So those are two specific changes that I think are important. 

Chairman CARPER. It is funny you should mention the Government Performance Results Act. It is something that Senator Warner, Senator Akaka, and I worked on here in the Senate, and others did, I am sure, in the House, and passed it, the President 

signed it—with really no fanfare. It is like a time bomb in a good 

sense, and it is one that is starting to spread through the Federal 

Government. And as it metastasizes, instead of bad things happening, I think good things are going to happen. It has been a very 

helpful tool for the executive branch and I think for us as well and 

I think for the folks that are trying to get better results for less 

money. I am glad you mentioned it. 

I would ask you for some of the areas where you think we are 

making some progress, maybe a couple of areas that you think— 

and you have alluded to this already, but just maybe as we get 

ready to wrap up here, a couple of areas again you would like to 

just mention where you think we maybe have not made sufficient 

progress and we really need to. 

Ms. BURWELL. Clearly, in the conversations that I have had, including in this hearing, the regulatory area and the functioning of 

OIRA, and it is from a number of different perspectives, and thinking about how the regulatory process is working. There have been 

a number of issues raised, and that is a place that I will want to 

understand. What are those issues, the priority of those issues? 

How does OMB, the institution, feel about those issues? And how 

do the Cabinet departments we work with—as well as the voice of 

people, which I think is hopefully represented by this Committee 

on a regular basis. 

And so that is a place where I think I will want to understand 

more deeply and has been brought up in both my meetings and this 

hearing. 

Chairman CARPER. OK. Finally, would you just mention one or 

two management practices that you witnessed in the private sector 

that you thought were just especially effective that could be transferred to this realm? Just one or two. 

Ms. BURWELL. I would go back to thinking about strategy, structure, people, and I think that is an important process and sort of 
39 

just basic framework to help people move to a place where you get 

that kind of clarity of goal. That is part of what the strategy is. 

And so that would be one thing. 

I think another element that is important is actually thinking 

about people management. And I know we are all extremely busy 

in government, and it is very hard. But I actually think that performance management is another thing that I think you said I 

have learned that is actually very important. It is important to set 

goals with your direct reports. It is important to review those goals 

on a regular basis. It is important to use that as a tool by which 

you reserve people in terms of their performance. 

And so how we invest in our personnel in government is something across the board—executive branch, Legislative Branch, all of 

us—is something that I think is an important thing we can learn 

from the private sector, those disciplining tools and mechanisms, 

because we all get so busy, and it is one of the first things that 

I think goes. 

Chairman CARPER. All right. Thank you. 

Jeff Zients has served as our Acting OMB Director, and he is not 

here, but just for those of you in the room that talk to him and if 

somebody is watching on the television over at OMB, I just want 

to express my thanks to him. I know the President and others feel 

that way as well. He has come in and he served in a variety of capacities at OMB, and we are grateful for his service. 

If you are confirmed—and I am encouraged that you will be— 

there are going to be a number of direct reports that are going to 

have to be confirmed to put your team in place. Would you just 

mention what those are likely to be? 

Ms. BURWELL. Those are likely to be Brian Deese, who has been 

sent up to be the Deputy Director on the B side. I would add my 

thanks to Jeff Zients. If Jeff departs, there will be an opening the 

Deputy Director for Management. There will additionally be the position in OIRA in terms of Senate-confirmed positions that are open 

currently or will be open at OMB. 

Chairman CARPER. Well, the Administration has an obligation to 

give us good names. They have given us in your case an excellent 

name, an excellent person, and we will look forward to getting to 

know the person they have nominated for the B side of OMB, and 

we are looking forward to meeting the new nominees for the other 

two. 

The Administration has an obligation to vet and nominate quality people. We have an obligation to get to know them and to vet 

them as well, have hearings promptly, and if there are no problems, to move those names promptly, especially in this instance. 

The other question, this is really kind of a personal question. I 

do not know that I will ever get to meet your parents, but I am 

struck they must really be—and Stephen is sitting right there behind you, your husband, over your right shoulder. They must be 

very remarkable people to have been raised in Hinton, West Virginia, a couple of gals that turned out as well as you and your sister obviously have turned out. 

What was it in the water there in Hinton, West Virginia, right 

along the New River, that enabled a gal who grew up there in a 

town that I once lived in as a kid, who has gone on to Harvard and 
40 

was a Rhodes scholar and to work at the highest levels in business, 

foundations, the Clinton Administration, which has a remarkable 

record of success? What were some of the secrets that have enabled 

to—I do not know your sister, but I hear very good things about 

her. What are some of the secrets that have enabled you to turn 

out as well as you have. I know you are modest. You have no reason to be modest, but I admire the fact that you are. But what are 

the secrets? 

Ms. BURWELL. I would credit my parents with a couple of very 

important things that they did, and one is they instilled in us the 

sense of the importance of service, and that is whether—my father 

belonged to many community organizations: the Lions Club, the 

Elks Club, the Jaycees, and the Rotary. My mother was with different organizations, business and professional women’s groups. 

She was president of the Church Women for almost 25 years. And 

so this idea that is just part of everyday living. And so that is one 

thing. 

And then the other thing is I just think the simple idea of always 

do your best. And those two things I think are what have enabled 

me and my sister to do the things that we have had the chance to 

do. 

Chairman CARPER. That is great. Whenever I go to schools—I go 

to schools a lot. I love to do that, all kinds of schools, elementary 

schools, high schools, colleges. I just like to talk about service, and 

I tell young people I meet with, in my life there are folks that I 

have met that are the least happy people are the people who do 

not really think about much outside of themselves, do not really 

look for ways to serve, and some of that is scripturally based, it is 

faith-based, and we have an obligation to serve other people. And 

to the extent that we do, then we are the lucky ones that were entitled to serve. 

You will be lucky, I think you will be lucky if you have this opportunity to serve, and my hope is that you will have that opportunity, and soon, and we will work with you to help put together 

a good team around you and then to really collaborate and see if 

we cannot somehow be a force multiplier for one another—we need 

to be—and create some synergies that are dramatically needed as 

this Administration begins its second 4 years. 

I have been handed a note by my staff, and it says: The hearing 

record will remain open until the close of business tomorrow, April 

10, at 6 p.m., for the submission of statements and questions for 

the record. 

Before I close the hearing, the majority of people have come and 

gone during this hearing, but most of the Members, Democrat and 

Republican, on our Committee have come and asked questions, 

heard you, and I think that is a positive sign. It is actually sort 

of encouraging that we did not have a crush of people here in the 

room or sitting up here at the dais, because if they were, it would 

probably mean you are in trouble. I think you will have an opportunity to do this job. Then you will really be in trouble. But the 

rest of us will not be, because I think you bring us the kind of service and leadership that we need. 

Let me just ask my staff: Anything else for the good of the order? 

[No response.] 
41 

All right. With that having been said, Stephen, great to see you 

again. I will finish up where I started. Thank you for your willingness to share your bride with all of us and for you to be able to 

share your life with the people of our country. 

With that, this hearing is adjourned. 

Ms. BURWELL. Thank you, Mr. Chairman. 

Chairman CARPER. Thank you. 

[Whereupon, at 4:35 p.m., the Committee was adjourned.] 

(43) 

A P P E N D I X 

FOR RELEASE: April 9, 2013 

CONTACT: 

Emily Spain (Carper) 202~224-2441 or emily spainta>carper.senate.gov 

Senator Tom Carper) C/Jdirman 

Jennie \Vestbrook (Carper) 202-224-2627 or jennie westbrookra-:;hsgac.senate.gov 

Chairman Carper's Statement at the Nomination of Sylvia Burwell to be the Director of 

the Office of Management and Budget 

WASHfNGTON - Today, Senate Homeland Security and Governmental Affairs Committee 

Chairman Tom Carper (D-Del.) convened the hearing on the Nomination of Sylvia Burwell to be 

the Director of the Office af Management and Budget. For more information on the hearing or to 

watch a webcast of the hearing, please click here. Chairman Carper's opening statement, as 

preparedfor delivery, follows: 

"Today we meet to consider the nomination of Sylvia Mathews Burwell, President Obama's 

choice to serve as Director ofthc Office of Management and Budget. This is a critical 

nomination that comes at a critical time, as OMB has lacked a Senate-confirmed leader since 

January of last year, when then-Director Jack Lew left to become Chief of Staff at the White 

House. 

"Folks who know me know that I'm a big believer in the power of leadership. Throughout my 

life and career, I've seen the impact of dedicated and talented leaders first hand, and learned how 

good leaders can be critical in turning around struggling organizations and providing essential 

guidance during challenging times. Leadership is an important, and often undervalued, asset that 

can detennine whether or not an organization of any size or scale can effectively accomplish its 

mission. 

"That's why I have long been concerned about a problem that has plagued the Executive Branch 

through both Democratic and Republican Administrations - numerous and longstanding 

vacancies in senior positions throughout the Federal government. This problem has become so 

prevalent that I've started referring to it as Executive Branch 'Swiss cheese.' At any given 

moment we are lacking critical leadership in numerous positions in just about every agency, 

undermining the effectiveness of our government. While Congress and the Administration have 

taken steps to address this problem, the fact remains that we still have more work to do to ensure 

that we have talented people in place to make critical decisions. That's one of the reasons why 

today's confirmation hearing is so important, and why I'm pleased that President Obama has put 

forward a nominee who I believe has the skills necessary to step in and be effective irom day 

one. 

"Ms. Burwell's prior experience in government has prepared her well to lead during this 

challenging period for our nation, a time when we can no longer afford to avoid making the 

"tough choices necessary to put our nation on a responsible and sustainable long-tenn fiscal path. 
44 

She served as Deputy Director of the Office of Management and Budget and Deputy Chief of 

Staff during the Clinton Administration a time when our government got its deficit under 

control and achieved four balanced budgets in a row. She is someone who knows firsthand how 

challenging budget negotiations can be. But she is also someone who knows that it is possible 

for the President and Congress to reach a bipartisan agreement on a comprehensive, long-term 

budget plan. 

·'Ms. Burwell also brings valuable leadership skills from the private sector, where she has run 

two of our nation's largest philanthropic foundations, the Bill and Melinda Gates Foundation and 

the Walmart Foundation. In all of the jobs she has held over the years, Ms. Burwell has shown a 

great work ethic and intellect, and a strong business perspective. She also is a warm and 

gracious person, and someone who can build consensus across party lines at a time when 

members of both political parties need to set partisan considerations aside for the sake of our 

nation. These qualities, in my opinion, can be attributed in large part to the fact that she hails 

from Hinton, West Virginia - a wonderful town of wonderful people, where I once lived as a 

young boy. 

"And these qualities have made Ms. Burwell an effective leader since the day she arrived in 

Washington as a young member of President Clinton's economic team. Her wisdom from both 

the public and private sectors will now be put to use in addressing fiscal challenges that are much 

more severe than the daunting challenges she hclped address in the 1990's. 

For some perspective on the serious nature of our nation's debt and deficit crisis, I'll note that, in 

Fiscal Year 1993. the deficit was $255 billion. The Congressional Budget Office now projects 

the deficit for this fiscal year to be $845 billion and that will be the first time in five years that 

the deficit has dipped below $1 trillion. In 1993, debt as a percentage of Gross Domestic 

Product was 49 percent. Today, it is approaching 76 percent. 

"The grand budget compromise that we need to address this fiscal crisis must have three 

essential elements. It must address both spending and revenues in a balanced approach. It must 

rein in the costs of our entitlement programs in a way that doesn't savage the poor or the elderly. 

And it must demand that through better management of government programs, we deliver better 

services to the American people at a lower cost. 

"This Committee is an important partner with the Office of Management and Budget in all of 

these areas, but especially in ensuring that our government achieves better results for less 

taxpayer money. Both Congress and the Executive branch bear cqual responsibility in rooting 

out wastc, fraud and abuse in government programs. Both bear responsibility in ensuring that we 

measure the performance of programs and alter or end those programs that do not work, or have 

outlives their usefulness. Both bear responsibility for providing transparency to the public 

transparency on how our tax dollars are spent. 

"Senator Coburn and I have worked closely together over the years to identify sensible, 

achievable savings that could be accomplished simply by better management. For example: 

2 

• We know we can save billions of dollars by shedding federal property that is no longer 

used. 
45 

We know we can save billions of dollars every year by reducing the amount of improper 

payments that the government makes. 

• We know we can save billions in federal contracting every year through efforts such as 

the so-called strategic sourcing initiative, which involves buying more in bulk. 

• We can save billions of dollars through better management of the government's 

information technology infrastructure including, for example, by continuing the effort 

to consolidate federal data centers. 

• We can bring in billions of dollars in revenues by doing a better job of collecting taxes 

that are owed but not paid. And here I am not talking about new taxes - I'm talking 

about doing a better job of collecting the taxes that are already owed. 

"And I know from my conversations with Ms. Burwell that she is fully committed to all ofthese 

efforts. She is also committed to helping improve ways to measure the performance of 

government programs, and to ensure that we have sound financial management practices across 

the government - including at the Department of Defense, whieh in its whole history has never 

been able to conduct a full audit of its finances, much less achieve a clean audit. 

"Ms. Burwell, as you sit here twenty years after you first came to Washington, I do think it is 

instructive to look back and reflect on the budget debate of those days when, like now, we faced 

deficit and long-term debt problems that on many days seemed insurmountable. 

"Just over twenty years ago, in January of 1993, President Clinton's nominee to be Director of 

the Office of Management and Budget, then-Congressman Leon Panetta, appeared before this 

Committee. He talked about how the American people didn't trust the government anymore. 

He talked about the importance of making the budget process work so that the government could 

start to restore that credibility. He told this Committee: "We need to make government more 

efficient, more creative, make it an instrument of long-term economic growth, not an 

impediment, and make it a source of investment in our future, not a robber of our children's 

birthright." 

·'All of these words ring even more true today. The American people will not - and should not 

tolerate Congress and the White House kicking the can down the road any longer on tough 

budget decisions. Nor will they tolerate our failure to make significant progress in addressing 

some of the tough management challenges faced by agencies across government. 

"So my recommendation to my colleagues is that we confirm and get Ms. Burwell in place as 

fast as we can, and get going on the work that the American people sent us here to do." 

### 

3 
46 

Opening Statement of Senator Tom A. Coburn, M.D. 

Hearing on the Nomination of 

Mrs. Sylvia M. Burwell 

to be Director of the Office of Management and Budget 

Tuesday, April 9, 2013 

Today the committee welcomes Mrs. Sylvia Burwell, the president's nominee to be director of the 

Office of Management and Budget (OMB). 

[f confirmed, Mrs. Burwell will be the country's chief budget official and performance officer, 

responsible for overseeing the fiscal and management functions of the federal government. Given the current 

financial condition of our nation and the far-reaching scope of the federal government, this will he no small 

undertaking. 

Record levels of unsustainable spending and borrowing have placed the country at a critical fiscal 

juncture. After four years of trillion dollar deficits and more than a decade of unbridled levels of government 

spending and borrowing, our national debt now exceeds $16.7 trillion. Federal spending has doubled since 

2000, and Congress now borrows 24 cents out of every dollar it spends, adding to our national debt at a rate of 

$32,000 every single second. 

The president nominated a qualified and capable individual in Mrs. Burwell. Yet, the challenges with 

which she will be confronted are stark and sobering. Much work remains to reduce the deficit, eliminate 

unnecessary duplication, demand discernible results from government efforts, and reform federal operations to 

increase efficiency and transparency. 

Lacking true leadership from both the White 1I0use and congressional leaders, Washington continues to 

stumble its way through a series of budget crises. We've shortchanged taxpayers at every turn, missing 

countless opportunities to reverse our fiscal course and do better for those that sent us here. Instead, we refused 

to enact meaningful deficit reduction, failed to reduce government waste and unnecessary duplication, and 

continue funding thousands of programs with few measurable outcomes. We must do more to guard against 

waste and ensure those in need of assistance actually receive the benefit of tile taxpayers' investment. 

Although we have differing philosophies offederal spending and taxation, I am hopelul Mrs. Burwell 

will usc her influence at the Office of Management and Budget to advocate fiscal restraint, deficit reduction, 

and commonsense reforms for a more efficient government. I will commit to work with her to find bipartisan 

solutions in every possible arena--from government transparency and placing metrics on government programs 

to putting the country back on a sustainable fiscal path. At the same time, I will continue to hold this 

administration accountable for the promises it makes to taxpayers and will work diligently to reduce federal 

spending. 

It is my hope Mrs. Burwell will take to heart the concerns of this committee regarding unsustainable 

deficits and federal borrowing, government transparency, accountability and efficiency, and commit to working 

with us to solve many of these challenges, both small and great. I plan to suppo11 her nomination and look 

forward to working together. 
47 

Senator Jay Rockefeller 

Senate Committee on Homeland Security and Governmental Affairs 

Hearing on the "Nomination of the Honorable Sylvia M. Burwell to be 

Director, Office of Management and Budget" 

Statement as Prepared for Delivery 

April 9, 2013 

Mr. Chairman, fifteen years ago, I was honored to introduce Sylvia Mathews during her 

nomination hearing to become Deputy Director of the Office of Management and Budget. 

Today, I could not be more proud to testify again on her behalf for the even more prestigious role 

of Director. 

As we are dcbating tbe best course for our country's economic future, we need smart, strong 

leadership at our federal budget office. Sylvia Mathews Burwell is absolutely the person for this 

job. I urge this Committee to swiftly consider and confirm her as the Director of the Office of 

Management and Budget. 

I have known Sylvia her entire life and her proud parents for years. Cleo and Bill set an 

incredible example for their two daughters, Sylvia and Stephanie. I have attended church and 

been with them at many major milestones including the wedding reception for Sylvia and her 

husband, Stephen. I have a deep abiding respect and fondness for the Mathews family. They are 

truly great Americans and West Virginians. 

I can tell you that Sylvia is brilliant. She won't tell you that because she is modest, but I will. 

Sylvia graduated from Harvard and was a Rhodes Scholar, but she has never forgotten her West 

Virginia roots, and the people she and I are both driven to serve. 

She is humble, she is hard-working, she has integrity, and she remains devoted to helping our 

nation's hard working families achieve the American dream, just as her Greek immigrant 

grandparents did so many years go. 

Sylvia is a proud native of Hinton, West Virginia - a historic railroad community nestled in the 

mountains of Appalachia that has had more than its fair share of economic hardships. 

Though she could have made a fortune in the corporate world, Sylvia has spent the majority of 

her life in public service or working at organizations that are dedicated to lifting up struggling 

families and communities. 

Sylvia previously scrved in the Clinton Administration as Staff Director for the National 

Economic Council, ChiefofStaffto Treasury Secretary Robert Rubin, Deputy Chief of Staff to 

the President, and Deputy Director of the Office of Management and Budgct. 

She was central to crafting the Clinton budget in the late 1990s that led our country to three 

budget surpluses in a row and to record growth. 
48 

And there is no doubt that she is the person to tackle the challenges of today. Debts and deficits 

are staggering. The tax code is riddled with complexity and loopholes, and while the economy is 

improving, growth is much too slow for my liking. 

Our country needs someone with thc experience and the intellect of Sylvia Mathews Burwell at 

the center of the great debates to come over the next four years. 

After her time in the Clinton Administration, Sylvia turned to philanthropic work as President of 

the Gates Foundation's Global Development Program and most recently the Wal-Mart 

Foundation. 

Not only does Sylvia understand budget issues, but she wants to put that knowledge to good use 

and really help people in need. That is what makes her entirely right for this job. It is not only 

about the numbers and line items; it is about the people who are impacted by them. 

Sylvia is a true business and economics expert. But she is not someone who looks at those issues 

in a vacuum. She understands deeply the impact they have at home in West Virginia and on the 

people and places like ours across the country. 

Though she has travelled the world and earned great renown, Sylvia still possesses the same 

qualities she did as the star student from Hinton I met so many years ago. 

The people of West Virginia are incredibly proud to call her one of our own. And I am proud to 

introduce her to this Committee today. 

Thank you. 
49 

STATEMENT OF SYLVIA MATHEWS BURWELL 

Nominee to Serve As 

Director of the Office of Management and Budget 

UNITED STATES SENATE COMMITTEE ON HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

April 9,2013 

Thank you Chainnan Carper, Ranking Member Coburn, and Members of the Committee for 

welcoming me today. It is a privilege to be considered by this committee as the President's 

nominee to be Director of the Office of Management and Budget. 

I want to thank Senators Rockefeller and Manchin for their support of my nomination. West 

Virginia is fortunate to have two such great Senators who were also strong governors of our 

State. 

I am pleased that my family could join me today: my husband Stephen and my brother-in law 

Joe. My 5 year old daughter Helene and 3 year old son Matthew were not ahle to join us today. 

I understand the sacrifices entailed by public service, and I recognize that the biggest burden falls 

on one' s family members. So I deeply appreciate their support as I seek to take on this new 

challenge. 

I am also grateful to President Obama for nominating me to scrve as the next Director of the 

Office of Management and Budget. It is an honor to be considered for this position at this 

important time. 

Finally, I want to thank the Members of the Committee and their staffs for meeting with me over 

the last few weeks and for sharing your insights. If I am confirmed, I very much look forward to 

continuing our conversations. 

I believe in the greatness of our nation. As a second generation Greek American, my family and 

I have benefitted greatly by the opportunities this country offered. 

Our nation has made important progress over the last four years. We pulled out ofa deep 

economic downturn. Our financial markets have stabilized. Businesses are hiring again. And 

we began the long journey to put our fiscal house in order. 

The President and the Congress have made progress on the deficit, but there is more to do. We 

need to focus on making the economy work for middle class families and American business, in 

the short and the long tcrm. 

I f I am confirmed, my primary focus will be to contribute to achieving balanced deficit 

reduction, increased efficiency and effectiveness in how government works, and targeted 

investments that grow the economy and create jobs. 
50 

The President is actively engaged with Members of Congress on this subject. If I am confirmed, I 

will do everything in my power to keep this dialogue going and to continue to build on the 

relationships between the Administration and Members on both sides of the aisle. 

From my experience in the Clinton Administration at OMB, the White House, and the 

Treasury Department -I learned the importance of working together in a bipartisan fashion to 

get things donc. I saw first-hand how the deficit reduction agreements of the late 1990s were 

reached. I know that we all come to the table with firm convictions and the belief that we know 

the right answer. We also come with the same conviction to serve the American people, which I 

hope will drive us to find common ground to move the country forward. 

There is no question that the road ahead will be difficult. The challenges we face are sobering. 

But I am confident we can come together on a comprehensive plan. 

I am pleased with the prospect of returning to OMB. I have tremcndous respect for the 

institution and the incredibly talented men and women who work there. I am hopeful that, if 

confirmed, I can contribute to ensuring OMB is a place where talented people want to go and 

that the institution is strong for other Administrations. Although OMB is most well-known for 

its work on the Federal budget, the management side of OMB is also critical. 

In the current fiscal environment, it is more important than ever that we are operating the 

government in the most efficient and effective manner. 

I want to credit this Committee and Acting Director Zients for their strong leadership in these 

areas. If I am confirmed, I will work to build on these efforts and continue to increase the 

eftlciency and effectiveness of taxpayer dollars. By governing smartly and being good stewards, 

we can reduce the deficit and increase the value of what is delivered. 

As someone who has been out of the government now for 12 years, I am hopeful that I can bring 

a fresh perspective to the fiscal debates underway. From my positions at the Walmart 

Foundation, the Bill and Melinda Gates Foundation, and as a Director at MetUfe, I have seen the 

important role that both thc government and private sector play in the lives of the American 

people. 

If I am connrmed, it would be an honor to dedicate myself to using the tools at OMB to ensuring 

that our government delivers for the American peoplc. 

Again, I want to thank tbe President for giving me this opportunity and the Committee for 

considering my nomination. J look forward to answering any questions you may have. 

2 
51 

t 'tlited States 

Office of Government Ethics 

1201 \;cw 'York ,\'.'cnuC', ~\\(, Suite son 

\\,lShingwrl, DC :WIJ05 391'7 

The Honorable Thomas R, Carper 

Chairman 

Committee on Homeland Security 

and Governmental Affairs 

United States Senate 

Washington, DC 20510 

Dear Mr, Chairman: 

!\fAR 2 f 2013 

In accordance with the Ethics in Government Act of 1978, I enclose a copy of the 

financial disclosure repOlt filed hy Sylvia M, Burwell, who has been nominated by President 

Obama for the position of Director, Office of Management and Budget. 

We have reviewed the report and have obtained advice from the agency concerning any 

possible contliet in light of its functions and the nominee's proposed duties, Also enclosed is an 

ethics agreement outlining the actions that the nominee will unde11ake to avoid conflicts of 

interest, Unless a date for compliance is indicated in the ethics agreement, the nominee must 

fully comply within three months of confinnation with any action specified in the ethics 

agreement. 

Ba~ed thereon, we believe that this nominee is in compliance with applicable, laws and 

regulations governing conflicts of interest. 

Enclosures (2) - REDACTED 

/2l~~,. Walter M, Shaub, Jr. -PDirector 
52 

Jonathan E. Rackoff 

Assistant General Counsel and 

Designated Agency Ethics Official 

Office of Management and Budget 

725 lin Street, NW, Room 5001 

Washington, DC 20503 

Re: Ethics Agreement 

Dear Mr. Rackoff: 

March 4,2013 

The purpose of this letter is to describe the steps that I will take to avoid any actual or 

apparent conflict of interest in the event that I am confimled for the position of Director, Office 

of Management and Budget. 

As required by 18 U.S.C. § 208{a), I will not participate personally and substantially in 

any particular matter that has a direct and predictable effect on my financial interests or those of 

any person whose interests arc imputed to me, unless r first obtain a written waiver, pursuant to 

18 U.S.C. § 208(b)(l), or qualify for a regulatory exemption, pursuant to 18 U.S.c. § 208(b)(2). 

I understand that the interests of the following persons are imputed to me: any spouse or minor 

child of mine; any general partner of a partnership in which I am a limited or general partner; any 

organization in which I serve as officer, director, trustee, general partner or employee; and any 

person or organization with which I am negotiating 01' have an anangement concerning 

prospective employment. 

Promptly after confirmation, but no later than 90 days from my confirmation, I will divest 

my interests in the following entities: 

• Amazon.com, Inc.; 

• 1NG Global Real Estate Fund; 

• Vanguard REf[ Index Fund(VGSNX); and 

• Nuveen Real Estate Securities Fund (F ARCX) 

With regard to each ofthese entities, I will not participate personally and substantially in any 

partiCUlar matter that has a direct and predictable effect on the financial interests of the entity 

until I have divested it, unless I first obtain a written waiver, pursuant to 18 U.S.C. § 208(b)(1), 

or qualify for a regnlatory exemption, pursuant to 18 U.S.C. § 208(b)(2). 

Upon confirmation, I will resign from my position with MetLife, Inc. I own shares of 

MclLire, Inc. common stock. r also own vested stock options for shares of Met Life, Inc. 

common stock. I do not own any unvested stock options for shares of MetLife, Inc. common 

stock. In addition, under the MetUfe Non-Management Director Defened Compensation Plan, I 

have a vested interest in the MetUfe Deferred Stock Account, which is paid to me in the form of 
53 

MetUfe, Inc. common stock. I previously elected to receive some of the common stock awards 

in a lump sum payment at resignation and some of the common steck awards in annual 

installments. The installment payments will be accelerated, and I will receive the MetUfe, Inc. 

common stock at resignation. As soon as permitted following my confirmation, but no later than 

60 days from my confirmation, I will divest all of my common stock and all of my vested stock 

options. If I divest the stock options by exercising them, I will divest the resulting shares of 

MetLife, Inc. common stock as soon as pClmitted following my confirmation, but no later than 

60 days from my confirmation. Until r have divested all of these financial interests, I will nol 

participate personally and substantially in any particular matter that has a direct and predictable 

effect on the financial interests of MetUfe, Inc., unless I first obtain a written waiver, pursuant to 

18 U.S.C. § 208(b)(l), or qualify for a regulatory exemption, pursuant to 18 U.S.c. 

§ 208(b )(2). In addition, for a period of one year after my resignation, I will not participate 

personally and substantially in any particular matter involving specific parties in which MetLife, 

Inc. is a party or represents a party, unless I am first authorized to participate, pmsuallt to 

5 C.F.R. § 2635.502(d). 

Upon confirmation, I will resign from my positions as President of the Walmart 

Foundation and Vice President ofWal-Mart Stores, Inc. In accordance with the Walmart 

Deferred Compensation Matching Plan, a portion of my salary was deferred. The dcferred salary 

will be paid to me by Wal-Mart Stores, Inc. in a lump sum within 60 days of my resignation as 

an officer of Wal-Mart Stores, Inc. In addition, I will receive a cash incentive payment for the 

work I performed during fiscal year 2013, ended January 31, 2013. The amount of the cash 

incentive payment will be fixed on February 27,2013. I will receive a portion of the cash 

incentive payment before March 15,2013, and a portion of the cash incentive payment will be 

paid to me within 60 days of my resignation as an officer ofWaI-Mart Stores, Inc. I will not 

receive a cash incentive or other bonus for fiscal year 2014, which began February 1, 

2013. Until I have received these payments, I will not participate personally and substantially in 

any patticular matter that has a direct and predictable effect on the ability or willingness ofWalMart Stores, Inc. to make these payments to me, unless 1 first obtain a written waiver, pursuant to 

18 U.S.C. § 208(b )(1). In addition, for a period of one year after my resignation, I will not 

participate personally and substantially in any particular matter involving specific patties in 

which the Walmart Foundation or Wal-Matt Stores, Inc. is a party or represents a party, unless I 

am first authorized to participate, pursuant to 5 C.F.R. § 2635.502(d). 

I own U1wested Wal-Mart Stores, Inc. restricted stock and unvested performance shares 

(which are rights to receive shares ofWal-Mart Stores, Inc. common stock if certain petiolmance 

conditions are met). Upon my resignation from my positions as President of the Walmart 

Foundation and Vice President of Wal-Mart Stores, Inc., I will forfeit all unvested performance 

shares and unvested restricted stock. In addition, I have vested Wal-Mati Stores, Inc. 

performance shares. These shares will be converted into Wal-Mart Stores, Inc. common stock 

prior to March 15,2013. A portion of the shares ofcommo11 stock will be distributed directly to 

me, and a portion will be deferred pursuant to the Wal-Mart Storcs, Inc. Stock Incentive Plan of 

2010 (the "SIP"). The shares of common stock defened into the SIP will be distributed to me as 

soon as pcrmitted, but no later than 60 days from my confirmation. As soon as pelmitted 

following my confirmation, but no later than 90 days from my confirmation, I will divest all of 

my shares ofWal-Marl Stores, Inc. stock. Untill have divested all of these financial interests, I 
54 

will not participate personally and substantially in any particular matter that has a direct and 

predictable effect on the financial interests of the Wal-Mart Stores, Inc., unless I first obtain a 

written waiver, pursuant to 18 U.S.C. § 208(b )(1), or qualify for a regulatory exemption, 

pursuant to 18 U.S.C. § 208(b)(2). 

Upon confirmation, I will resign from my positions with the following entities: 

• The Council on Foreign Relations; and 

• The Nike Foundation. 

For a period of one year after my resignation from each of these entities, I will not pruticipate 

pcrsonally and substantially in any pruticulru' matter involving specific parties in which that 

entity is a party or represents a party, unless I am first authorized to participate, pursuant to 

5 C.F.R. § 263S.S02(d). 

Upon confilmation, I will resign from my positions with the following entities: 

• ALS Evergreen Chapter; and 

• Pete G. Peterson FOlmdation. 

I understand that as an appointee I run required to sign the Ethics Pledge (Exec. Order 

No. 13490) and that I will be bound by the requirements and restrictions therein in addition to the 

commitments I have made in this and any other ethics agreement. 

I have been advised that this ethics agreement will be posted publicly, consistent with 

5 U.S.C. § 552, on the website ofthe U.S. Office of Government Ethics with other ethics 

agreements of Presidential nominees who file public financial disclosure reports. 

Sincerely, 

1t.M~~ 
55 

U.S. Senate Committee on Homeland Secnrity and Governmental Affairs 

Pre-hearing questionnaire for the nomination of 

Sylvia Mathews Burwell to be 

Director, Office of Management and Budget 

I. Nomination Process and Conflicts ofInterest 

1. Why do you believe the President nominated you to serve as Director of the Office of 

Management and Budget (OMB)? 

I believe that the President nominated me for this position because of my prior 

experience as the Deputy Director of OMB as well as my experience serving in 

positions at the White House, the Department of the Treasury, and the National 

Economic Council. In these roles, I was part of a team that presided over three budget 

surpluses. I also believe the President nominated me because of my private sector 

experience at the Walmart Foundation, the Bill and Melinda Gates Foundation, and 

MetLife, which complements my public sector work. 

2. Were any conditions, express or implied, attached to your nomination? If so, please 

explain. . 

No. 

3. What specific background and experience affirmatively qualifies you to be OMB 

Director? 

In my time at OMB, the White House, the Department of the Treasury, and the 

National Economic Council, I worked on a number of budgetary and. management 

issues, and while at OMB I was further responsible for helping to oversee the day-today operations of the agency. In addition, my experiences in grant making, 

management, and organizational development while at the Walmart Foundation, the 

Bill and Melinda Gates Foundation, and MetLife will be relevant in undertaking the 

responsibilities of OMB Director. 

4. Have you made any commitments with respect to the policies and principles you will 

attempt to implement as OMB Director? If so, what are they and to whom have the 

commitments been made? . 

No. 

Senate Homeland Security and Governmental Affairs Committee 10f25 
56 

5. If confinned, are there any issues from which you may have to recuse or disqualifY 

yourself because of a conflict of interest or the appearance of a conflict of interest? If 

so, please, explain what procedures you will use to carry out such a recusal or 

disqualification. 

In connection with the nomination process, I consulted with the Office of Government 

Ethics and OMB' s designated agency ethics official to identifY potential conflicts of 

interest. I will resolve any potential conflicts of interest in accordance with the tenus of 

an ethics agreement that I entered into with OMB's designated agency ethics official 

and that was provided to this Committee. I am not aware of any other potential 

conflicts of interest. 

II. Background of the Nominee 

6. You served as Deputy Director of OMB from 1998 to 2001. What do you believe will 

be the most important similarities and differences between the challenges you faced 

then and those you will face now, if you are confinned? What specific lessons that you 

learned during your earlier tenure will you be able to apply? 

An important similarity is that OMB remains a place where the big picture on 

budgeting comes together, and where difficult choices must be made and discipline 

applied. The substantive challenges of how to use the agency's budget and 

management tools to support a healthy economy, in both the short- and long-tenn, are 

even greater today. These challenges include addressing our long-tenn deficit, 

protecting our nation's aging population, and stabilizing the economy. These are 

problems that cannot be solved by a single person or institution; they require dialogue, 

collaboration, and compromise. 

From my experience in the Clinton Administration, I learned the importance of working 

together in a bipartisan fashion to get things done. I saw firsthand how the deficit 

reduction agreements of the late 1990s were reached, and I took part in many of the 

negotiations. I know that we all come to the table with finn convictions and the belief 

that we know the right answer. But in the end, we must be willing to find common 

ground if we hope to move the country forward. If confirmed, I would work with 

Congress to restore regular order and build strong relationships with Members of 

Congress. 

,enate Homeland Security and Governmental Affairs Committee 20f25 
57 

7. Since your time at OMB you have served as President of the Walmart Foundation and 

President of Global Development at the Bill and Melinda Gates Foundation. How do 

you believe that experience has prepared you for the position of OMB Director and 

how will it inform your approach to this position? 

My experiences at the Walmart Foundation and the Bill and Melinda Gates Foundation 

reinforced for me the value of delivering impacts through clear and measurable goals, 

both in grant making and organization building. These experiences also solidified for 

me the importance of having leadership work with all levels of an organization to 

ensure that teams are fully motivated to achieve these goals and to continuously 

improve their practices. In addition, my time spent as a grant maker has honed my 

ability to evaluate program performance and make difficult funding choices. Each of 

these experiences will inform my approach as OMB Director, if confirmed. 

8. Undertaking the role ofOMB Director during a time a fiscal challenges will require 

restraint and priority setting as the government seeks to help those in need. In what 

ways do you believe the mission of and challenges faced by the two charitable 

organizations you have worked for are consistent with, and in what ways different 

from, the challenges faced by OMB? Please describe how you plan to approach making 

difficult decisions relating to fimding priorities. 

My work at the Bill and Melinda Gates and Walmart Foundations required me to make 

difficult funding decisions in order to achieve goals and deliver measurable results. 

While the Foundations' work centered on specific issue areas, such as increasing small 

holder farmers' productivity in the developing world, OMB must work in myriad areas 

for the overall benefit of the American people. I believe that we must constantly strive 

to improve the Government's ability to meet the needs of its citizens by funding 

effective programs that make efficient use of taxpayer dollars. Making smart decisions 

to achieve these results requires listening to different perspectives, applying analytic 

rigor, and focusing on outcomes. If confirmed, I would bring this approach to the many 

challenging issues with which the Director of OMB must engage. 

9. As Deputy Chief of Staff and Deputy Director of OMB under the Clinton 

Administration, what role did you have, if any, regarding healthcare·policy? 

At the National Economic Council (NEC), I supported the Director when the NEC 

engaged in health care economic issues. At OMB, I engaged in health care issues as 

part of the normal budget process. 

Senate Homeland Security and Governmental Affairs Committee 30f25 
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III. Role of the Director of OMB 

10. What do you anticipate will be your greatest challenges as OMB Director, and what 

will be your top priorities? 

I believe mtr greatest challcnge is putting our country on a sustainable fiscal path while 

keeping our commitments to America's seniors, protecting the vulnerable, and making 

the critical investments necessary to grow the economy. This is a challenge that can 

only be met with comprehensive deficit reduction coupled with a thorough look at how 

we can make taxpayers' dollars go further by improving government performance and 

fmding ways to be more efficient. Pursuing this approach will be one of my top 

priorities, if confirmed. 

I will also focus on building relationships with Congress. From my experience in the 

Clinton Administration, I know the importance of working together in a bipartisan 

fashion to get things done. Although we all come to the table with the firm conviction 

that we know the right answer, we must ultimately be willing to find common ground if 

we hope to move the country forward. If confirmed, I would work to build strong 

relationships with Members of Congress and I will focus on keeping OMB strong as an 

institution. 

11. How do you intend to allocate and delegate responsibility among the OMB Deputy 

Director, the Deputy Director for Management, and yourself? Do you anticipate the 

role and responsibilities of the current Deputy Director for Management and Chief 

Performance Officer will change? 

If confirmed, I see the three of us working together in close partnership to shape budget 

policy and process, promote the President's management agenda, and lead OMB as an 

organization. I envision working hand-in-hand with the Deputy Director to develop a 

responsible budget that promotes comprehensive deficit reduction and continued 

investments that will grow the middle class and our economy as a whole. ] look 

forward to working with the Deputy Director for Management and Chief Performance 

Officer to shape and build on the President's management agenda for the next four 

years. The management side of OMB is very important to ensuring that the entire 

Federal government operates efficiently and effectively and is always working to 

improve its financial management, contracting, information technology, performance 

and personnel management, and numerous other initiatives. In these times of fiscal 

constraint and uncertainty, managing our resources and promoting a high level of 

performance in Government has never been more important. 

Senate Homeland Security and Governmental Affairs Committee 40f25 
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IV. Policy Questions 

General Management 

12. What do you see as the most important management challenges facing the Federal 

government, and, if confirmed as OMB Director, what would you do to address those 

challenges? 

Improving government performance is an important challenge as Federal agencies 

manage in tight and uncertain budgetary times. The Federal government must find 

ways to continue to provide a high level of service and identifY innovative ways to 

manage resources to meet their missions. This means improving the overall 

productivity of the Federal workforce; preventing dollars being lost to waste, fraud and 

abuse; stretching contract dollars and information technology investments even further; 

improving or eliminating underperforming programs; and, making the most out of the 

facilities and other assets of the Federal government. If confirmed, I look forward to 

working with agency leaders, including the President's Management Council, as well as 

Members of Congress, to do just that. 

13. One ofOMB's principal goals is to improve the effectiveness and efficiency of 

government programs. What OMB initiatives can make the greatest difference in 

governmental efficiency and effectiveness? How can those efforts be integrated with 

the budget process and with the work of congressional authorizing and appropriating 

committees? 

There are a number of things that OMB is currently doing to improve efficiency a,nd 

effectivcness, which I will continue to advance, if confirmed. OMB is working with 

Federal agencies to make better use of evidence and evaluation in program design, 

execution, and budgeting. Evaluation enables programs to continuously improve to 

produce better outcomes for the public. OMB is also working, along with GAO and 

Members of Congress, to continue to identifY programs that should be cut or 

consolidated because they are duplicative, under-performing, or no longer working as 

intended. I also believe that we should use technology as an opportunity to help 

government agencies do more with less, making smart technology investments that 

promote innovation and reduce our spending on commodity information technology 

(IT) services. We also need to make sure we are buying smarter, leveraging the 

purchasing power of the Federal govemment to get the best value for the taxpayer's 

dollars. All ofthese efforts will help us to do more with less, and ultimately to help 

government agencies be more efficient and more effective for the American people. 

In terms of how to integrate these efforts with the budget and the work of Congress, 

these are complex issues and I look forward to working with Congress to tackle them 

together. 

Senate Homeland Security and Governmental Affairs Committee 50f25 
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14. In light of the serious budgetary challenges facing the government, what are the most 

important steps that OMB can take to enable the Federal government to perform its 

essential functions at less cost? 

I think the most important thing that OMB can do is to provide clear guidance and 

assistance to agencies on specific ways to reduce costs and increase efficiencies. For 

example, in the area of government contracting, OMS can identify area:> for agencies to 

poql their purchasing power through the use of strategic sourcing, saving money for 

each agency individually and the Government as a whole. In the area of IT, OMS can 

help agencies identify cornmodity investments that can be consolidated or eliminated, 

and reinvest those savings into innovative technologies that will drive filture 

productivity and cost savings. OMS can help agencies reduce administrative and 

operational costs through policies that promote less overhead and avoid unsound 

investments in facilities or systems that will drive up costs. 

OMS can also work with agencies to help improve performance by setting goals and 

driving them to meet those goals. Sy helping agencies set performance goals and 

ensuring that senior agency officials are committed to those goals, OMS can spur high 

pcrformance across the Government and improve agency effectiveness. OMB can also 

work with Federal agencies to build capacity for rigorous evaluation and data analysis 

across multiple programs and agencies to help make programs more efticient. 

Finally, and significantly, OMS will continue to provide strong analysis in order to 

make difficult choices about program investments across the Federal government. 

Managementfor Performance and Results 

15.. The Government Performance and Results Act (GPRA), as updated in 2010 by the 

GPRA Modernization Act (GPRAMA) (P.L.l11-352), provides a govt:rnment-wide 

framework for managing performance. What is your opinion of the current 

government-wide performance-management program, and how do you believe it could 

be improved? 

The framework put in place by the GPRA Modernization Act provides a foundation for 

achieving siguificant performance improvements across Government. I understand the 

Administration is using this framework to begin shifting agencies away from a mindset 

focused on the preparation of plans and reports to one where agency It:aders use goals, 

data, and other evidence to inform decisions that wiJllead to better outcomes and 

productivity. This type of framework encourages senior officials across the agency to 

focus on clear goals, measure progress, and take action to continuously improve 

outcomes; this is the kind of management that I have seen work in the private sector, 

and I am glad to see that both Congress and OMB are supporting this work. 

If confirmed, I will work with the President's Management Council, Cabinet 

secretaries, and senior leaders across the Administration to ensure a continued focus on 

Senate Homeland Security and Governmental Affairs Committee 60f25 
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using goals, data, and evidence to improve results. As the GPRA Modernization Act 

continues to be implemented, I look forward to working with Congress to collaborate 

upon improvements that can be made that would provide further benefits to Federal 

agencies and to the public. 

16. Under GPRAMA, the Performance Improvement Council is headed by the OMB 

Deputy Director for Management and is instructed to facilitate the exchange of best 

practices that have led to performance improvements. As agencies continue to 

implement GPRAMA, how will you work with the Deputy Director for Management to 

ensure that the Performance Improvement Council continues to address its members' 

emerging needs? 

The Performance Improvement Council (PIC) is in a unique position to look across the 

Federal government and identifY areas for collaboration, facilitate cross-agency 

improvement of practice, and achieve goals both at agencies and on a government-wide 

basis. When I chaired the President's Management Council as the OMB Deputy 

Director, I experienced firsthand how management councils like the PIC can help solve 

cross-cutting problems. If confirmed, I will work with the Deputy Director for 

Management and agency leadership to identify new opportunities for the PIC to break 

down silos and increase collaboration to improve results for the American people. 

17. At the beginning of each Congress, the Government Accountability Office (GAO) 

publishes a "High Risk" report identifYing government operations that are particularly 

vulnerable to fraud, waste, abuse, and mismanagement or that need transformation to 

address particular management challenges. What do you believe OMB should do to 

appropriately address GAO's recommendations in this report? 

The work GAO has done over the past few years both on the High-Risk list and on 

identifYing duplication and fragmentation is commendable. With respect to the HighRisk list, I believe that agencies, GAO, OMB, and Congress need to partner to continue 

to address the identified challenges. Issues such as Federal oversight of food safety or 

the management of Federal real property are not initiatives that one agency or branch of 

Government can tackle on its own. I understand that this Administration is committed 

to working with GAO and agency leadership to work through the items on the HighRisk list and chart the appropriate paths forward. I look forward to continuing that 

work, if confirmed. 

Senate Homeland Security and Governmental Affairs Committee 70f25 
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18. GAO annually publishes a report describing areas where it has found evidence of 

duplication, overlap, or fragmentation among government programs and. describing 

opportunities to reduce the cost of government operations or to enhance revenue 

collection. These reports also identifY actions taken by Congress and the Executive 

Branch to address the specific recommendations outlined in the previous year's report. 

In·Your vi~w, what actions should OMB take to appropriately address GAO's 

reC9mmendations to the Administration that are contained in these repo:rts? Please 

provide any specific areas you plan to begin addressing as OMB Director. In addition, 

what do you believe OMB should do to help Congress review and take action on the 

reqommendations provided directly to Congress by GAO? 

Duplication, overlap, and fragmentation are areas where I think we can and should all 

work together through the budget process to improve. The President's last four budgets 

have identified numerous areas in which programs should be eliminated, consolidated, 

or reduced. Many of these areas overlap with areas of duplication or fragmentation 

identified by GAO, and GAO commended the work of the Administration's work. In 

areas as diverse as containing investigating potentially criminal explosive use, arms 

control and nuclear proliferation, management of oil and gas leases, and the tracking of 

agency IT projects, GAO indicated that the Administration has fully mt:t their 

recommendations. I also believe there is more progress to be made. If confirmed, I 

will look forward to working with Congress, agencies and GAO to continually identifY 

such areas, and see that we appropriately address them through the budget process. 

19. The Obama Administration has made it a priority to ensure that the Federal government 

serves the American people with the utmost effectiveness and efficiency. For example, 

in Memoranda sent on September 14,2010, to the Senior Executive Service, President 

Obama and Chief Performance Officer Zients launched the Accountable Government 

Initiative to make the government more efficient and effective. Then, on June 13,2011, 

the President issued Executive Order 13576, entitled Delivering an Efficient, Effective, 

and Accountable Government, which called for a number of steps, including support of 

agencies' performance and management reform and cost-cutting efforts, better crossagency coordination, better use of performance metrics, and the reduction in wasteful 

and inefficient programs. 

a. What is your opinion of the Obama Administration's Accountable Government 

Initiative and other government-reform initiatives of the Administration, including 

both their contents and the degree of success achieved so far? 

I strongly support the steps the Administration is taking to strengthen government 

performance and reduce administrative costs through a broad range of initiatives from 

real property to IT. The Administration has a strong record of success, but there is 

still more to be done in this area. If confirmed, I will work with Federal agencies and 

the Congress to build on this success, and to ensure the most efficient and effective 

government possible. 

Senate Homeland Security and Governmental Affairs Committee 8 of 25 
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b. If confinned, what would you do to further carry out the Accountable Government 

Initiative? Are there any ways in which you believe it should be modified'? 

The Federal government needs to continue to take a hard look at government 

programs, operations, and management and use clear goals to conimunicate priorities 

and evidence to detennine which activities provide the right return'on investment of 

taxpayer dollars. If confinned, there are a number of ways in which I would seek to 

further existing government management efforts, I would continue to pursue gains in 

reducing our real estate footprint and contracting costs. And I would focus on 

continued refonn of government technology spending, working ~th agencies to get 

rid of duplicative IT -like multiple email systems across one agency - and invest in 

innovative technologies that produce savings through gains in efficiency., 

Financial Management 

20. What do you believe is the value and importance of agencies meeting statutory 

requirements for implementing effective financial management syste;ms? What do you 

believe OMB's role should be in improving financial management in-the Federal 

government? -

I believe financial management systems play an important role in supporting the 

Government's responsibility to track and report on taxpayer dollars~ It is my 

understsnding that agencies are making significant progress in overcoming challenges 

such as having disparate financial management systems, However, I believe there are 

still areas for improvement. The Government must manage the risks associated with 

investing in any large-scale technology project, including financial management 

systems. If confinned, I would continue the efforts at OMB to review and halt systems 

that are off-track and consider how the Federal government can expf!Ild the use of 

shared services so that we make the most efficient use of taxpayer dollars. 

21. The Federal government has made great strides in improving financial management by 

federal agencies. However, more work still needs to be accomplished by federal 

departments and agencies in order to ensure accurate and complete fmancial reporting, 

and effective financial management. Notably, the Department of Homeland Security 

and the Department of Defense have yet to pass and complete a full financial audit. In 

fact, there are serious concerns about whether the Department of Defense will be able 

to conduct and pass a full financial audit by its statutory deadline of2017. What'5teps 

should OMB take to ensure that both the Department of Homeland Security and the 

Department of Defense meet their goals and requirements for conducting a financial 

audit, and ultimately obtaining a "clean" audit? 

Strong financial management practices, including reliable public reporting of the 

Government's finances, are critical to accountability. The results of the arulUal 

independent audit are a key indicator of progress in carrying out these activities 

effectively and an indicator of whether the financial infonnation is fairly presented. 

Senate Homeland Security and Governmental Affairs Committee 90f25 
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Members of the public must know that they can rely on financial statements and public 

sites like USASpending to understand how the Government is using taxpayer dollars. 

This infoimation is also important to decision-makers, as sound information about how 

much programs cost can help them make the right decisions about managing 

government programs and implementing policy. 

I lltderstan'd that OMB currently works with agencies to improve audit results by 

providing technical assistance on their corrective action plans and also by tracking and 

supporting their efforts on Performance.gov. If confIrmed, I will continue to emphasize 

the importance of improving fmancial management results. 

Improper Payments' 

22. Congress, passed The Impropcr Payments Elimination and Recovery Improvement Act 

of2012 (P.L. 112-248) during the end oflast session. This new law follows passage of 

the Improper Payments Elimination and Recovery Act of2010 (p.L. 111-204). Both 

laws seek to identify, prevent, and recover the more than a hundred billion dollars in 

improper payments made by federal agencies each year. 

a. To date,. not all agencies have fulfIlled the requirements of improper payments law. 

How will OMB work with agencies to more fully implement improper payments 

requirements? 

Over the last three years, agencies made significant progress in reducing improper 

payments, reducing the rate from 5.42 percent to 4.35 percent. I believe that we must 

build on this progress as improper payment rates and amounts remain at unacceptable 

levels, and agencies must continue efforts to address this issue. If confirmed as 

Director, I will support a continued effort to build on congressional and Administration 

action to reduce improper payments. 

b. What role do you anticipate for OMB in continuing to press agencies to identify, 

prevent, and recover improper payments? 

The enactment of the Improper Payments Elimination and Recovery Act of201 0 

(IPERA) and the Improper Payments Elimination and Recovery Improvement Act of 

2012 (IPERIA) provided agencies with new tools to identify and address improper 

payments and enhance Administration efforts. OMB plays a pivotal role in the 

government-wide effort to reduce improper payments and, if confIrmed as Director, I 

will ensure that OMB continues to play that role to the greatest extent possible. To 

achieve continued success, I believe OMB must work closely with agencies to provide 

technical assistance and ensure they are implementing appropriate and aggressive 

corrective actions to reduce their improper payments. 

Senate Homeland Security and Governmental Affairs Committee 100f25 
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23. Many solutions for reducing federal improper payments involve collaboration and 

coordination among federal agencies, inspectors general, and state governments. For 

example, many inspectors general and agencies have asked for improved methods for 

sharing data and information proven useful for detecting fraudulent payments. 

However, sharing of data between agencies can still be a time-consuming process, even 

for sharing basic information such as death records. What role, if any, shOuld OMB 

play in ensuring agency collaboration and greater sharing of data helpful for curbing 

waste and fraud? If confirmed, how do you plan to carry out this role? 

When agencies share data, they must do so in a way that fully protects individual 

privacy. The public must be able to trust the Government's ability to handle and 

protect personally identifiable information. At the same time, greater sharing of data 

can help the Federal government serve the public with programs that reflect the highest 

degree of efficiency, coordination, and accountability. A central role of OMB is to 

facilitate agency collaboration. In the area of improper payments, OMB guidance to 

help agencies move forward with data-sharing in a manner that complies with 

applicable privacy laws, regulations, and polices may be useful. If confirmed, I will 

consider ways that OMB can assist agency collaboration and greater data sharing to 

help curb waste and fraud. 

Real Property Management 

24. The Federal government is the largest owner of real property in the United States, and 

weaknesses in the govemment's management of real property have been a challenge for 

many years. GAO has identified problems related to excess and underutilized 

properties, vacant and deteriorating facilities, unreliable data, and over-reli'ance on 

costly leasing. What do you believe are the principal obstacles that the Federal 

government faces in the management of and, where appropriate, disposition of federal 

real property? 

As the largest owner of real property in the United States, the Fede~ government must 

continue to improve its management of real estate. As I currently understand the issue, 

there are several obstacles in this area, including complex legal requirements that often 

serve as a barrier to disposal of excess and underutilized properties and vacant and 

deteriorating facilities. In addition, the Administration has indicated. that the 

disposition or transfer of Federal real estate is often slowed by the absence of an 

effective framework to resolve diverse and competing stakeholder interests with respect 

to a given property. These are challenging obstacles, and ones that the Administration 

and Congress must work together to overcome. If conftrmed, I look forward to 

working with Congress on this issue. 

Senate Homeland Security and Governmental Affairs Committee 11 of25 
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25. What measures do you believe should be taken by OMB, the General Services 

Administration (GSA), the Federal Real Property Council, and others in the Federal 

government to overcome those obstacles? If confirmed, how would you seek to address 

the challenges faced by federal agencies in real property management? 

Based on my current understanding, this Administration has already implemented 

several sigfiificant initiatives to reform Federal real property asset management and has 

achieved $8.5 billion in savings to date. OMB has also recently directed agencies to 

build on this progress. As discussed in Question 24 above, if confirmed, I look forward 

to working with Congress to address real property management challenges faced by the 

Federal government. In addition, the Administration has indicated that the disposition 

or transfer 'Of Federal real estate is often slowed by the absence of an effective 

framework to resolve diverse and competing stakeholder interests with respect to a 

giyen property. These are challenging obstacles that the Administration and Congress 

must work together to overcome. If confirmed, I look forward to working with 

Congress on this issue. 

26. Do you believe legislation is necessary or desirable to give agencies the tools they need 

to improve the management offederal real property? 

I am aware of legislative proposals put forth by both this Committee and the 

Administration on this issue, and, if confmned, I look forward to working with the 

Cornmittee towards a solution that will drive improvements in Federal real estate 

management. 

Procurement Policy, 

27. Since you last served in government, annual federal spending on contracts has more 

than doubled, and for each of the last five fiscal years, total spending on contacts has 

exceeded half a trillion dollars. Too often, agencies' contracting decisions - e.g., overreliance on noncompetitive contracts, or inappropriate use of "cost-plus" contracts -

have urmecessarily inflated contract costs. But wasteful spending also often results 

from poor planning that occurs before the contract is signed, or weak oversight of the 

contractor after the contract is signed. What do you think are the next important steps 

that OMB and agencies should take to gain efficiencies in the procurement of goods 

and services? 

Driving greater efficiency and accountability in the Government's acquisition process 

ensures that agencies use taxpayer resources wisely. While I understand that Federal 

contract spending decreased over the last three years, I believe there remain many 

opportunities for the Government to buy smarter. For example, I undl~rstand that OMB 

established a senior-level council to increase the use of strategic sourcing so that 

agencies can better pool their purchases, get [ower prices, and reduce the cost of doing 

business. If confirmed, I would encourage agencies to continue to improve how the 

Government buys and manages goods and service. 

Senate Homeland Security and Governmental Affairs Committee 120f2S 
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I also believe that the Government must take steps during contract planning and 

administration to ensure that taxpayer dollars are being spent wisely. For example, 

program managers and contracting officers need to be trained appropriately to manage 

their responsibilities and minimize the risk to the Government. They must also 

collaborate throughout the process to ensure that the acquisition clearly reflects the 

mission need and that appropriate performance measures are established and measured. 

As the Nation's largest purchaser, it is critical that the Federal government has the 

appropriate expertise and processes in place to be able to purchase wisely for the 

American people. 

28. What considerations should agencies take into account when deciding whether to use a 

contractor or the federal workforce to perform a particular function? 

The first consideration must be to ensure that only Federal employees perform 

inherently governmental work so that the public interest is protected appropriately. 

Where work could be performed by either the public or private sector, I believe the 

Government must ensure it retains its core technical and management capabilities so 

that it can develop requirements, negotiate contracts, and manage performance in the 

best interest of the taxpayer. However, I also know that it is important for the 

Government to hamess private sector expertise in some cases. I understand that the 

Office of Federal Procurement Policy issued a policy letter that discusses the various 

considerations, and, if confmned, I look forward to working with the agencies to ensure 

appropriate collaboration between human capital, budget, and contracting officials as 

they consider the various factors involved in making these determinations. 

29. What do you see as priorities for the Office of Federal Procurement Policy (OFPP) the 

next four years? 

I believe that the Office of Federal Procurement Policy's priority must be ensuring that 

our contracts deliver the best value to the taxpayer. As I see it, there are four 

components to delivering on this goal. First, we must buy smarter and take full 

advantage of proven strategies, such as strategic sourcing, where we pool the 

Government's buying power to get a better deal. Second, we must ertsure that we are 

meeting the Government's small business contracting goals and maximizing 

opportunities for potential small business contractors to engage with the Govermhent. 

Third, we must build the right supplier relationships by rewarding good CO!1tract 

performance and taking action against bad performers as necessary to ensure taxpayer 

dollars are being used wisely. Fourth, we must ensure our acquisition workforce is 

effectively trained so that they have the tools necessary to award and manage contracts 

that delivcr the best results. All of these efforts are means to the ultimate goal of 

maximizing value for the American people. 

Senate Homeland Security and Governmental Affairs Committee 13 of25 
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30. In what ways do you plan to strengthen existing initiatives, or begin new ones, to 

ensure that federal agencies' use of high-risk contracting types continues to decrease? 

If conftrmed, I will work with the Administrator for Federal Procurement Policy to 

make sure ,our government-wide rules for using high-risk contracts are dear and that 

agencies have effective internal controls in place to ensure that decisions to use such 

contracts are consistently rooted in sound analysis. Training can also hdp ensure that 

our' acquisition workforce has the tools necessary to award and manage contracts that 

deliver the best results. 

31. What do you see as the appropriate relationship between OFPP and the acquisition 

policy functions of the GSA? 

I understand that the Office of Federal Procurement Policy (OFPP) leads the Chief 

Acquisition Officers Council, the Federal Acquisition Regulatory Council, the Cost 

Accounting Standards Board, and other cross-agency groups. I would expect the views 

and concerps of all agencies to be solicited and considered by OFPP. OFPP must work 

closely with GSA, the Department of Defense, the Small Business Administration, and 

other stakeholder agencies to ensure sound policy development and implementation. If 

confirmed; I will work closely with the Administrator for Federal Procurement Policy 

to ensure that OFPP's policies appropriately reflect input and expertise from GSA as 

well as other agencies. 

32. This year, GAO removed interagency contracting from its High Risk list. GAO noted 

that Congress, OMB, and agencies have created new policies to govern the creation and 

use of inter-agency contracts and have increased management controls over these 

contract vehicles. However, GAO also cautioned that removal of interagency 

contracting from the High Risk list does not mean that use of these contracts is without 

challenges, and continued management attention is needed. What steps do you intend 

for OFPP to take to ensure that agencies address the risks associated "'ith interagency 

contracts, and to ensure that interagency contracts are used appropriately to streamline 

the procurement process and leverage the buying power of the government? 

As this question acknowledges, vigilance continues to be necessary even after GAO 

removes il program from the High Risk list. If confirmed, I will work with the 

Adininistrator for Federal Procurement Policy to ensure that the policies and procedural 

measures that improved interagency contracting and contributed to its removal from the 

High Risk tist are continued and, where possible, improved upon in order to ensure that 

agencies get the best results from interagency acquisitions. 

'nate Homeland Security and Governmental Affairs Committee 140f25 
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33. What are the factors that OMB and OFPP should consider when reviewing federal 

agencies' business cases for the award of new government-wide acquisition contracts? 

New government-wide acquisition contracts should create the best value for the 

taxpayer and help agencies achieve lower prices than are currently available on existing 

government-wide or agency-specific contracts. Other factors to consider in making 

such awards include whether the contract can help reduce duplication across the 

Government, and whether the contract can help sustain and grow small business 

participation. Finally, I believe that the executive agents for these contracts must be 

committed to best practices, such as analyzing and sharing information to become 

smarter buyers. Ultimately, our focus must continue to be on ensuring our contracts 

deliver the best value to the taxpayer. 

34. What steps do you plan to take to strengthen the administration's efforts on strategic 

sourcing? 

I understand that OMB established the Strategic Sourcing Leadership Council to bring 

together the largest buying agencies and SBA to accelerate the identification of 

strategic sourcing opportunities for common goods and services. Strategic sourcing 

enables the Government to do what many large companies do - pool demand to get 

better value on items that are needed across the organization. If confirmed, I look 

forward to working with Federal agencies to ensure the Government. is taking 

maximum practicable advantage of strategic sourcing. 

us. Postal Service 

34. Because of declining mail volume, as well as the recent fmancial slowdown, the U.S. 

Postal Service has continued to suffer unsustainable losses that threaten both its shortterm liquidity and its long-term viability. The Postal Service is currently losing on 

average about $25 million per day, must close a projected $20 billion gap between armual 

revenues and expenses, and is currently carrying only 10 days' worth of opera,ting cash 

compared with 12 days at this point in 2012. 

a. The Postmaster General and others have offered a number of legislative proposals 

intended to strengthen the Postal Service's operations and fmances and this 

Cornmittee reported postal reform legislation that was passed by the Senate last year. 

However, postal reform legislation has yet to be enacted into law. If Congress fails to 

act, do you believe the Postal Service can remain viable for long? 

b. What would be the impact on America's economy, society, and stature if the financial 

condition of the Postal Service continues to deteriorate to the point of major default? 

The U.S. Postal Service (USPS) has enormous value to the Nation's commerce and 

communications. I am aware that the Administration's FY 2013 Budget request put 

forward a balanced plan that would return the Postal Service to financial viability while 

Senate Homeland Security and Governmental Affairs Committee 150f25 
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saving taxpayers money. Absent legislative reforms, it appears the USPS will face tough 

choiCes giveh its current financial and operational challenges. 

35. What role do' you believe OMB should play in achieving legislative or other solutions to 

help the Postal Service achieve solvency? If confirmed, what office or official would you 

task With thG lead responsibility to work with Congress to identify and propose measures 

to address the Postal Service's deteriorating financial condition? What role would you 

personally play in this endeavor? 

The financial health of the Postal Service is important to the bottom line of the Budget of 

the U.S. Government and to the country more broadly. While the Postal Service is an 

independent establishment of the Government, OMB and other agencies have stakes in its 

financial condition. If confirmed, I would look forward to working with Congress on this 

important issue. 

Grants Management 

36. On February 1

st of this year, OMB proposed draft guidance to improve the oversight and 

management .offederal grants (Reform of Federal Policies Relating to Grants and 

Cooperative Agreements; Cost Principles and Administrative Requirements). The goal of 

. the proposal is to create a more transparent, efficient and better performing federal grants 

process. What are your views about the current processes for managing federal grant 

programs and how such management processes might be improved? 

Sound financial management enables reliable public reporting of the Government's 

finances, strong controls to mitigate the risks of waste, fraud, and abuse in Government 

programs, and timely reporting of information. If confirmed, I look forward to learning 

more about the current process for managing Federal grant programs and working with 

Congress to improve grants management across the Federal government. 

E-Government and liiformation Technology 

37. Since the start of this Administration, OMB's Federal ChiefInformation Officer has 

launched several significant information technology (IT) initiatives, including the 25 

Point IT Reform Plan, PortfolioStats, and the Data Center Consolidation Initiative. These 

initiatives have the potential to save billions of dollars and improve the performance of 

federal agencies. While agencies and OMB have made progress in improving the 

management of IT projects, it is unclear whether the full potential savings and 

efficiencies from these reforms will be realized. If confirmed, how will you ensure that 

. agencies continue to give a high priority to implementing these initiatives? 

If confirmed, I plan to continue the strategic agenda for Federal IT that previous 

Directors established and worked to execute. I am committed to monitoring agency 

progress in implementing these initiatives. 

Senate Homeland Security and Governmental Affairs Committee 160f25 
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38. How do you plan to further OMB's Federal Data Center Consolidation Initiative? How 

speeifically do you plan to work with individual agencies to consistently define what 

constitutes a data center, how to efficiently consolidate unnecessary centers, how to 

consistently and repeatedly estimate savings resulting from such consolidations, and to 

ensure that ageneies are executing what is expected of them? Under your lead~rship, will 

OMB issue guidance to agencies to assist with their efforts to consolidate data centers, 

and if so, what areas do you believe agencies would best be served by having the 

guidance of OMB? How do you envision Data Center Consolidation integrating with 

Portfolio Stat, a proeess designed to help agencies evaluate their IT investments to 

identifY duplicative and wasteful spending, should you be eonfirmed? 

I understand that the Administration had already made signifieant prowess on data eenter 

consolidation, closing hundreds of data centers and identifYing hundreds more for closure 

this year. I also understand that the Administration folded its data center consolidation 

initiative into the PortfolioStat initiative, which is a broader effort to eliminate,low-value 

technology investments and reinvest in high-ROI technology investments. I believe that 

these are steps in the right direction, but there is further progress to be,made by looking at 

other measures of efficieney, like energy usage. If confirmed, I will work to drive 

OMB's efforts to identifY savings from optimizing those data centers that are pivotal to 

delivering taxpayer services and closing duplicative and inefficient data centers. This 

work will complement other important work at OMB and across agencies to eliminate 

low-value technology investments and drive an innovative approach to service delivery. 

Government Transparency 

39. Last summer, the Committee held a hearing to examine the current state of transparency 

into federal spending, lessons learned from the American Recovery and Reinvestment 

Act of 2009 (P.L. 111-5) (Recovery Act), and implementation of the Federal Funding 

Accountability and Transparency Act of 2006 (P.L. 109-282) (Transparency Act). At the 

hearing, witnesses testified that the Reeovery Act ushered in a new level of transparency 

and accountability over federal awards. By comparison, data quality and other issues 

have hindered the Transparency Act and it has failed to achieve a similar level of success. 

If confirmed, what steps will you take to learn from the success of the Recovery Act and 

better implement the Transparency Act? What specific steps will you take to ensure 

greater compliance by the agencies with the Transparency Act? 

The Recovery Act served as a test case for how Federal funds should be tracked, 

reported, and overseen. To harness lessons learned from this effort, the President 

established the Government Accountability and Transparency Board (GATB). Building 

on the work done to date, I believe there are improvements that the Federal government 

can make with respect to data quality, public usability of data, and data analytics and 

fraud analysis. 

Senate Homeland Security and Governmental Affairs Committee 170f25 
72 

If confirmed, I will continue the Administration's efforts to improve data quality. I will 

also continue OMB's close collaboration with the GATB, Federal agenci(:s, Congress, 

and others to build on the lessons learned from the Recovery Act and ensure transparency 

and accountability in Federal spending. 

40. Currently information on recipients of federal grants, contracts, and loans is required to 

be posted online for public review pursuant to the Transparency Act. Do you support 

makhig infol'lllation on all federal assistance, including subcontracts and subgrants, 

transparent in the same manner? 

I share the goal of creating a more open, transparent Government and support the 

Administratlon's efforts in this area. The public deserves to see how taxpayer dollars are 

being used - including who they are going to and for what purpose. If confirmed, I will 

work to build on the transparency efforts already underway and identify new ways to 

make'this information available. It is also important to align this transparency objective 

with agency management practices and, where possible, to mitigate costs associated with 

reporting. 

41. The Government Performance and Results Modernization Act of2010 directed OMB to 

make available on a public website a full list, description, and source offunding for all 

federal programs by October 1,2012. OMB has informed the Committee: that a complete 

list of all federal programs will not be available until late Spring 2013. In your view, is it 

beneficial for Congress, OMB, and executive agencies to have a regularly updated list of 

all federal programs? How can OMB use such a list to determine overlapping and 

duplicative programs and leverage existing efforts to drive government e:fficiency and 

better program management? 

From my previous time at OMB, I know that a significant amount of information exists 

regarding Federal programs and activities, including the information in the President's 

Budget. At the same time, I appreciate the need for a more user-friendly, easily 

accessible, and regularly-updated inventory of Federal programs. It is my understanding 

that OMB developed guidance for a phased approach to developing a cornmon inventory 

of all Federal programs, with the initial list scheduled to become available this spring. If 

confirmed, I look forward to working with the Committee on the program inventory and 

discussing how to use it to reduce duplication and improve program management. 

Senate Homeland Security and Governmental Affairs Committee 180f25 
73 

Regulatory Affairs 

42. What do you believe should be the role of OMB and its Office of Information and 

Regulatory Affairs (DIRA) regarding regulation? For example, what should be the 

respective powers and responsibilities of the heads of regulatory agencies and the heads 

of DIRA and OMB? In what areas should DIRA provide guidance or direction to the 

regulatory agencies, and how should differences between OIRA and an agency be 

addressed? 

The Office of Information and Regulatory Affairs (DIRA) develops and oversees the 

implementation of government-wide policies in the areas of regulation, information. 

collection, information and technology, privacy, and statistical and science policy. 

Executive Order 12866, Regulatory Planning and Review, issued by President Clinton, 

gives DIRA the responsibility to review agencies' draft proposed and final significant 

regulatory actions. With respect to regulatory policy, OIRA's mission includes ensuring 

coordination and interagency review within the Executive Branch, including offices 

within OMB and the Executive Office of the President; promoting adherence to the law 

and to the President's priorities and commitments; and ensuring that regulations serve the 

purposes of the statutes that authorize them, are based on sound analysis, and serve the 

interests of the public. 

DIRA's review of draft proposed and final significant regulations helps ensure that the 

issuing agency has adequately defined the problem that it intends to address; considered 

alternatives; assessed available information, risks, costs, and benefits (both qualitative 

and quantitative); consulted affected parties and promoted transparency and participation; 

and tailored the regulation to focus on the problem in a simple and clear way.that does 

not conflict with other rules or statutes. 

43. In what respects do you believe the current process for proposing, adopting, ahd 

reviewing federal regulations should be improved, and what steps do you believe OMB 

or others in the government should take to make those improvements? 

Starting with President Reagan, both Republican and Democratic Presidents required a 

process of interagency review of significant rules, overseen by OIRA and requiring 

careful attention to costs and benefits, to alternatives, and to avoiding unjustified 

burdens. I believe that the principles embodied in the regulatory Executive Orders are a 

strong foundation for our regulatory process. 

Building on this foundation and seeing a need for improvement, President Obama issued 

Executive Order 13563, Improving Regulation and Regulatory Review, which initiated a 

historic government-wide review of existing regulations to streamline, modify, or repeal 

regulations as appropriate to reduce unnecessary burdens and costs. 

If confirmed, I will strive to ensure that the regulatory process continues to maintain a 

balance between our obligation to protect the health, welfare, and safety of Americ~s 

Senate Homeland Security and Governmental Affairs Committee 190f25 
74 

and our commitment to promoting economic growth, job creation, competitiveness, and 

innovation. 

Personnel Management 

44. Sincy 2001, GAO has identified strategic human capital management as a. governmentwide high-risk area, explaining that agencies must do a better job of addressing missioncritical skill gaps that threaten the government's ability to effectively handle significant 

national issues. What do you believe are the biggest challenges in addressing these skill 

gaps'and what role should OMS play in efforts to improve human capital management 

across government? 

Closing Federal employee critical skills gaps is of great importance. If confirmed, I will 

work to ensure that OMB and OPM continue to make progress in this area. My 

understanding is that OMB is working closely with OPM and agencies to identify those 

areas with significant government-wide skills gaps as well as having each agency identify 

its highest priority skills gap areas, such as economists, grants management, procurement, 

human resources, cybersecurity and the STEM. To drive progress forward on these 

areas, I understand that OMB identified addressing these skill gaps as a key cross-agency 

priority goal. This will ensure frequent engagement from OMB, OPM, and agency 

leadership to monitor and regularly report progress on this important issue. 

Budget and Economic Policy 

45. In yoUr view, what actions should Congress and the Administration take to address our 

long~term structural budgetary imbalances? By what amount do you believe our deficit 

should be reduced in order to stabilize our finances, and by how much in the short term 

and by how much in the long term? What level of publicly held debt as at percentage of 

GDP do you believe would be appropriate to achieve by the end of 20237 

I believe that Congress and the President have already taken several steps to address our 

long-term budget challenges, but I also recognize that additional steps are required. The 

Budget Control Act of2011 cut discretionary spending by over $1 trillion, and the 

American Taxpayer Relief Act of2012 raised over $600 billion in revenue. In total, the 

spending cuts and revenue increases enacted over the past two years reduce the deficit by 

over$2.5 trillion. This is over halfway to the $4 trillion in deficit reduction needed to 

stabilize our debt, an important milestone of fiscal sustainability. I beli<:ve the remaining 

deficit reduction must both support our economic recovery in the short term and reduce 

the deficit over the medium to long term to put our debt on a declining path as a share of 

the economy. 

If confirmed, I look forward to working with Congress to enact a comprehensive package 

of spending cuts and revenue increases to stabilize our debt. 

Senate Homeland Security and Governmental Affairs Committee 200f25 
75 

46. Do you believe that revenues need to be increased in addition to spending being reduced 

(each as a percentage ofGDP), to restore balance to our nation's fmances? If so, what do 

you believe should be the relative amounts of spending cuts and revenue increases? 

I believe that putting our Nation on a sustainable fiscal path will require a comprehensive 

package of spending cuts and revenue increases. The spending cuts and revenue in the 

President's FY 20 I 3 Budget built on over $1 trillion in cuts to discretionary spending 

enacted in 20 II, including in the Budget Control Act of 20 11. Since the release of the 

FY 2013 Budget, Congress passed and the President signed the American Taxpayer 

Relief Act of2012, which included over $600 billion in additional revenue. Including 

interest savings, these actions have reduced the deficit by over $2.5 trillion, over halfway 

to the $4 trillion required to stabilize our debt. If confinned, I plan to yvork with 

Congress to achieve the remaining deficit reduction in a balanced manner. 

47. Do you have recommendations on how the policy-making process should be refonned to 

more effectively address our long-tenn fiscal challenges? For example, do you believe 

that budget refonns, such as enactment of enhanced rescission authority for the President 

or biennial budgeting, should be considered in order to provide an important tool for the 

President to cut wasteful spending and ensure that tax-payer dollars are being spent 

wisely and effectively? 

I believe it is important that Congress and the Administration work together to return to 

regular order. This will require hard work and compromise. With respect to budget 

refonns, the President and Congress worked together to enact the Statutory Pay-As-YouGo Act of2010 (PAYGO), which requires that OMB record the deficit impact of all 

legislation affecting mandatory spending and/or govemmental receipts on official 5- and 

10-year PAYGO scorecards, as well as the Budget Control Act of20n, which restored 

tight caps on discretionary spending. Both of these tools were also in place during the 

1990s, and contributed to the Nation's fiscal health during that time. 

In the last Congress, the President put forward a legislative proposal for an expedited 

procedure that guarantees an up or down vote on certain rescissions proposed by the 

President, helping to eliminate unnecessary spending and discouraging waste. If 

confinned, I look forward to working with Congress on this and other proposals that 

could help address the country's long-tenn fiscal challenges. . . 

48. Every year, the President's Budget submission to Congress includes an extensive list of 

government programs proposed by the President to be tenninated, consolidated, or 

refonned, in order to achieve significant budgetary savings. Yet, Congress continues to 

fund nearly all of these same programs. What further steps do you believe the 

Administration and Congress should take to tenninate, consolidate, or,refonn programs 

to achieve budgetary savings, and what would you do, if conflrmed, in 'this regard? 

As you indicate, in each of the previous budgets the Administration identifled on average 

more than 150 cuts, consolidations, and savings proposals, totaling nearly $25 billion 

each year, and Congress acted on a number of those proposals. Given the fiscal 

Senate Homeland Security and Governmental Affairs Committee 210f25 
76 

challenges we face and the many critical needs we must address, it is important that we 

redouble our efforts to address programs that have become outdated or wllsteful. If 

confirmed, I will continue to work with Congress and Federal agencies on proposals to 

· terminate, cqnsolidate, or reform programs in order to achieve savings. 

49. The OMB recently asked federal agencies to achieve savings through a number of 

reforins, including reduced spending on travel, conference attendance, and purchase of 

promotional items, among other policy changes. Do you plan to continue and expand on 

this effort? If so, please describe some of the specific additional changes you believe 

agencies could undertake to find additional savings. 

· It is important that Federal agencies pursue strategies to increase savings, which will 

allow them to invest further resources in their missions. It is my understanding that 

agencies have made significant progress in this regard, but these efforts are by no means 

corriplete. If confirmed, I will look for opportunities to increase goverrunent efficiency 

and effectiv~ness, including by continuing efforts to find savings in travel and conference 

spending. 

Healthcare Policy 

50. What is the.role of the rising cost of health care in driving our long-term debt, and how 

important is it that we fmd ways to reduce healthcare costs to solve our fiscal challenges? 

Finding ways to reduce health care costs to solve our fiscal challenges is one of our most 

pressing needs. Federal spending on Medicare and Medicaid and rising health costs are 

major contributors to our Nation's long-term deficit. Health care comprises one-quarter 

of non-interest Federal spending and this is projected to increase over thl: budget horizon. 

The Affordable Care Act was a down payment on health policies that will put our Nation 

· on a sustainable fiscal path. If confirmed, I look forward to working towards finding 

additional ways to reduce the growth of Federal health costs to address our country's 

long-term fiscal challenges. 

51. What do you believe OMB and others in the Federal goverrunent should do to address the 

· rising costs of healthcare? 

The Affordable Care Act (ACA) took historic and significant steps towards putting our 

country back, on a sustainable fiscal course while laying the foundation for a higherquality, more efficient health care system. In its latest analysis, the Congressional Budget 

Office estimated that the ACA will reduce the deficit by more than $100 billion over the 

first decade and by more than $1 trillion in the second decade. At the same time, the 

ACA has the potential to fundamentally transform our health system into one that 

delivers better care at lower cost. The ACA includes many of the most promising ideas 

from economists, practitioners, and leaders across the political spectrum to rein in longterm health costs. We need to ensure the ACA cost-saving measures ar,: implemented 

Senate Homeland Security and Governmental Affairs Committee 220f25 
77 

and move forward with other efforts to reduce deficits. If confirmed~ I look forward to 

working on the effective implementation of the ACA. 

To further control health care costs and strengthen Medicare, Medicaid, and other health 

programs, the Administration has proposed additional health savings policies that build 

on the ACA by eliminating improper payments and supporting reforms that enhance the 

quality of care. Moreover, the proposed policies accomplish these objectives without 

shifting significant risks onto individuals, slashing benefits, or undermining the 

fundamental compact these programs represent to our Nation's seniors, people with 

disabilities, and low-income families. 

52. Do you believe that caps on Medicaid per capita, similar to what was proposed under 

President Clinton, is an approach that is still relevant today? If so, would you support 

such an approach? How would states be affected by this type of proposal? 

My understanding is that States appear to be doing a good job controlling per capita 

Medicaid spending. According to the Medicaid Actuaries, total Medicaid per capita 

spending decreased by almost 2 percent in 2012, and it is projected to grow slower than 

per capita GDP over the next decade. If confirmed, I look forward to working with the 

Secretary of Health and Hlllllan Services to identify additional ways to improve 

efficiency in Medicaid and explore flexibility for States to better manage their programs. 

53. What are your views on achieving Medicare solvency via a defined competitive benefit? 

What steps do you believe would be needed to ensure that the most vulnerable seniors 

are protected under this proposal? 

I believe it is important to strengthen and preserve Medicare. Plans t6 transform 

Medicare into a defined competitive benefit or voucher program could undermine the 

fundamental commitment to seniors that Medicare represents and shift cost and risk onto 

retirees. Under voucher proposals, CBO's analysis indicates that the premiqms 

beneficiaries must pay to remain in traditional Medicare would increase significantly. 

believe it is important to continue implementing the ACA's Medicare reforms, which 

reduce beneficiaries' costs and per capita cost growth in Federal spending through 

targeted payment refinements and by encouraging high-quality and efficient health care 

delivery. The President's FY 2013 Budget builds on the ACA's reforms to achieve 

further cost savings while strengthening and preserving the program. Any changes to 

those services that help the most vulnerable must be analyzed carefully. 

54. For Section 402 demonstrations, OMB generally requires budget neutrality, but this 

requirement is not mandated by statute. What do you believe the requirements for future 

demonstrations ought to be? 

I understand that Section 402 demonstration authority in the Social Security Act (SSA) 

allows the Secretary to test whether different methods of payment will increase the 

efficiency and economy of programs without adversely affecting quality. Ifconfirmed, I 

will look into the issue of requirements for future demonstrations. 

Senate Homeland Security and Governmental Affairs Committee 230f25 
78 

55. Please explain the process that you believe should be used to review budget neutrality in 

Medicaid 1115 waivers. What data do you believe should be required from states in 

order to apply for these types of waivers? Please discuss the complexity of the Medicaid 

waiver process and suggest potential ways to simplifY the process. 

Section 1115 of the Social Security Act gives the Secretary of Health and Human 

Services authority to approve demonstration projects that promote the objectives of the 

Medicaid and CHIP programs. States have been able to use Section 1115 authority to 

expand eligibility, provide additional services, and create new service delivery and 

payment models that improve care, increase efficiency, and reduce costs. The budgetary 

impacts of proposed demonstration projects must be carefully evaluated. Recognizing 

the importance of such projects, the Affordable Care Act made changes to the State and 

Federal review processes to ensure transparency and public input. If confirmed, I look 

forward to' working with the Secretary of Health and Human Services to continue to 

increase transparency, simplifY application processes, and ensure the programmatic and 

budgetary impacts of State requests are carefully evaluated. 

56. CBO's analysis clearly indicates that increasing health care spending is a challenge for 

our country. What provisions of Patient Protection and Affordable Care Act do you 

think hold the most promise for restraining costs and why? What else n<:eds to be done? 

For example, should competitive bidding be expanded beyond durable medical 

equipment? 

The Affordable Care Act (ACA) took significant steps towards putting our country back 

on a sustainable fiscal course while laying the foundation for a more efficient health care 

system that delivers higher quality care. In its latest analysis, the Congressional Budget 

Office estimated that the ACA will reduce the deficit by more than $100 billion over the 

first decade and by more than $1 trillion in the second decade. At the same time, the Act 

has the potential to fundamentally transform our health system into one that delivers 

. better care at lower cost. 

Using authorities in the ACA, Centers for Medicare and Medicaid Services (CMS) is 

undertaking steps in targeted areas in which payments exceed the cost of high-quality 

and efficient care, such as by expanding competitive bidding for durable medical 

equipment.· The ACA includes provisions that link payment to performance on 

measures of quality and efficiency, and it establishes initiatives to encourage providers 

to coordinate services, such as the Medicare Hospital Value-Based Pur,;hasing Program, 

the Hospital Readmissions Reduction Program, and the Medicare Shared Savings 

Program. In addition, the ACA created the Innovation Center, which enables CMS to 

develop and test new payment and delivery system models in both Medicare and 

Medicaid to help determine the best ways to improve care and lower costs. If 

confirmed, I look forward to working with Congress on both ACA implementation and 

future legislation to strengthen health care delivery. 

Senate Homeland Security and Governmental Affairs Committee 240f25 
79 

V. Relations with Congress 

57. Do you agree without reservation to respond to any reasonable request or summons to 

appear and testify before any duly constituted committee of the Congress, if continned? 

Yes. 

58. Do you agree without reservation to reply to any reasonable request for infonnation from 

any duly constituted committee of the Congress, if continned? 

Yes. 

VI. Assistance 

59. Are these answers your own? Have you consulted with OMB or any other interested 

parties? If so, please indicate whieh entities. 

These answers are my own. I consulted with staff from the Administration and from 

OMB in developing them. 

I, Sylvia Mathews Burwell, hereby state that I have read the foregoing Pre-hearing Questions and 

that the infonnation provided therein is, to the best of my knowledge, current, accurate, and 

complete. 

(S'i are) , 

This 1st day of April, 2013 

Senate Homeland Security and Governmental Affairs Committee 250f25 
80 

COMMON QUESTIONS FOR 

EXECUTIVE NOMINEES 

1. Basic Biographical Information 

Please provide the following information. 
81 

(current ~'P0l/S~ Ol1iJl) 

SpptlSe's Last Name 

(currellt sptJlIse (JllIy) 

2 
82 

2. Education 

List aU post-secondary schools attended. 

3 
83 

3. Employment 

(A) List all of your employment activities, including unemployment and self-employment. 

1£ the employment activity was military duty, list separate employment activity periods to 

show each change of military duty station. Do not list employment before your 18th 

bit1:hday unless to provide a minimum of two years of employment history. 

r:-:IYi~t]IB~~m!i--~-'--'--"-"-'-~r----T------T I D"'e I 

i~1 ~ , NUlional """"""",.".,",, I Employ I,' Em!l!ovm~nl 'I' 

USPBS Commissioned ConlS, !;'"de" 

Other Fed","! employment, ., 1>19£1 Reccnt Location I I llel!!!n 

!ll£!U I (monlhiyeerJ ~ 

Slale Government (Non. PllSltiOIl I (CIty and State ' { hi (check box If Federal Employment). Sdr· i mont Y estimate) 'I 

I I U I I 'r;UelRullk i only) 'ear) (-heck, cmp oymen, nemp oymen , I' (.beel(' 

Fedcml Contractor, Non· '1' box if upft~.sent" hox Government Employment I if hiiH 

(eXciUding';;':h~~.:-P.I.Oy.m.c_n.t)_'-f_~_+'--"" _____ •. . .::I.m .• _Ie_l+c.c-e_m,-pl_O_Y._""'l ... : ..... 1 

f 

Non·government I ,iTalm'art Foundation President l13entonvilk,,' I "",,,n ... j AR 1111.011 I 

Non.gOVernmcilt---l nil: and Md"'~,dd-" ,President --1 Scatt:" \\ II 'If.-;;'l<"''-·;-;;''''''!ll-->--I 0;,,""12"',,"(' I Gates FoundatIOn I Global I 

1-.-..-.-. _ I ~ _____ lE..c~!:)pme::!.........L_ .. ___ +-_---.i"',"c+="';;;_,,--;;-;;--1 

I 

Federal government I Offke tel .. Deputy Director I Washington, x 

i._" .. , ... _, __ I_~_u_a2_:_~t:c~t .. and_ I ._... -1-1 "'D"'C....,.,-,.--__ .... L

I9

.

9

_

8 

...,..,:-+,,"',,;;;-.--_ ..... 7::;-' 

j Federal government I The Wbile 110"'. ,Assislant to 1.I.t.Oj Washington, I 

I President and DC .1 __ 1991 x 

rDeputy Chief of 

Staff 19~1 

. 

Federal government I' ~:;;~~~arunent of I. ~~~:~:~ref;;r )6. ~s.hington, 199<~' 

. Secretary 

i Federai'government ""J·he White HOt"e l'~~;;;~~:~:~al 1-~~shlngt;)-n-,-+---,i;::",.-i· .. '9"".c;;--"~l' 

Economic 

Council and 1993 

Special 

PresIdential 

Transition 

ClinlO;ji(;ore for 

Prosident 

I Assistant to 

I 

RobeJ1 Rubin 

head oflhe 

I National 

Economic 

4 
84 

(8) List any advisory, consultative, honorary or other part-time service or positions with 

federal, state, Of local governments, not listed elsewhere. None 

(C) Have you ever been fired from a job, quit a job after being told you would be fired, left 

a job by mutual agreement following charges or allegations of misconduct, left a job by 

mutual agreement following notice ofunsntisfllctory performance, or received II written 

warning, been officially reprimanded, suspended, or disciplined for misconduct in the 

workplace, such as violation of a security policy? 

No 

5 
85 

4. Potential Conflict ofIntcrest 

(A) Describe any business relationship, dealing or financial transaction which you have had 

during the last 10 years, whether for yourself, on behalf of a client, or acting as an agent, 

that could in any way constitute or result in a possible conflict of interest in the position to 

which you have been nominated. 

In connection with the nomination process, J have consulted with the Office of Government 

Ethics and the Office of Management and Budget's designated agency ethics official to identify 

potential conflicts ofintcrcst Any potential conflicts of interest will be resolved in accordance 

with the terms of an ethics agreement that I have entered into with OMB's designated agency 

ethics official and that has been provided to this Committee. 

(B) Describe any activity during the past 10 years in which you have engaged for the 

purpose of directly or indirectly influencing the passage, defeat or modification of any 

legislation or affecting thc administration or execution of law or public policy, other than 

while in a federal government capacity. 

I have not engaged in any such activity. 

5. Honors and Awards 

List all scholarships, fellowships, honorary degree5, civilian service citations, military 

medals, academic or professional honors, honorary society memberships and any other 

special recognition for outstanding service or achievement. 

1. Rhodes Scholar 

2. Institute of Politics Fellow, Harvard University 

3. Senior Fellow, UCLA School of Public Policy 

Honorary Degrees: West Virginia University, Doctor of Humane Letters, 2003 

Northeastern University, Doctor of Philanthropy, 2011 

6 
86 

6. Memberships 

List all memberships that you have held in professional, social, business, fraternal, 

scholarly, civic, or charitable organizations in the last to years. 

Unless relevant to your nomination, you do NOT need to ine1ude memberships in 

charitable organizations available to the public as II result of a tax deductible donation of 

$1,000 or less, Parent-Teacher Associations or other organizations connected to schools 

attended by your children, athletic clubs or teams, automobile support organizations (such 

as AAA), discounts clubs (such as Groupon or Sam's Club), or affinity 

memberships/consumer clubs (such as frequent flyer memberships). 

7 
87 

7. Political Activity 

Professional 

Member 

(A) Have you ever been a candidate for or been elected or appointed to a political office'! 

No. 

(B) List any offices held in or services rendered to a political party or election committee 

during the last ten years that you have not listed elsewhere. 

8 
88 

(C) Itemize all individual political contributions of $200 or more that you have made in the 

past five years to any individual, campaign organization, political party, political action 

committee, or similar entity. Please list each individual contribution and not the total 

amonnt contributed to the person or entity during the year. 

9 
89 

10 
90 

8. Publications and Speeches 

I have done my best to identify all books, articles, reports, speeches, testimony and other 

materials including a thorough review of my personal files and searches of publicly available 

electronic databases. I identified the following: 

(A) List the titles, publishers and dates of books, articles, reports or other published 

materials that you have written, including articles published on the Internet. Please provide 

the Committee with copies of all listed publications. In lieu of hard copies, electronic copies 

can be provided via e-mail or other digital format. 

Date(s} of Publication 

11 
91 

Secut;tyand Developme;t~at a Time 

orGlobal Economic TurmoiL 

, Article from The Global Economic 

; Crisis and Potentiallmplicatiolls for 

Foreign Policy and National 

Seeuritv, 

Making"~)r~gressrLes-chan1psdu 

progres, 

I Aspen Strategy Group 

I 

j eune Afrique, 

I 

,~L,~,~~ , Aspen Strategy Group 

The Role of Institutions in 

House; The Process of Economic 

Policy-Making During the Clinton 

June; 3.2009 

Administ!a!~~(pp':"L~±"1.:::0::.:38",)_--,L.,,,, ______________ --' 

(B) List any formal speeches you bave delivered during the Jast five years and provide the 

Committee with copies of tbose speeches relevant to the position for which you have been 

nominated, Include any testimony to Congress or IIny other legislative or administrative 

body. These items can be provided electronically via e-mail or other digital format. 

In my oUicial capacity at the Walmart and the Bill and Melinda Gates Foundation, I delivered 

speeches that focused on global development (e,g. increasing productivity for small holder 

farmcrs) and philanthropy, None of these speeches were on topics relevant to the position for 

which I am being nominated, and thus copies are not provided, 

Datels) of Speech 

12 
92 

i Global Development Program , Hddress 

Keynote Address: se;zi;;gih~""~~<" 

Momenl, Seeding the FUture 

address 

i\1k.rosof! 

WA. 

March 14,2012 

(C) List all speeches and testimony you have delivered in the past ten years, except for 

those the text of which you are providing to the Committee. 

13 
93 

I If":~o,"".",li-ty-a-n-d"-E,,.)q-U-:i-ty-;-l-ccs-a-.t"'t!-c-'-"-~""".~".""'-~--.! ~'''·''·····'·~'''·''":C,''-::c:-::-::-------j The Motivation and Methods of the 

Bill & Melinda Gates Foundalion. 

/

funSforming AdversitY'iiito''''·''·-"'i·\ii;;;J;T;;';;t;;;;--;;;;mCT:;;-;:~:;;t;~· 

Opportunity at the Achievers 

College Experience. 

"philanthropy's POlicy Role at the 

2nd Annu,l Conference on 

Stanford University. 

Borderless Giving, 

9. Criminal History 

Since (and including) your 18th birthday, has any of the following happened? 

Have you been issued a summons, citation, or ticket to appear in coun in a criminal proceeding against you? 

(Exclude citations involving traflic inU'actions where the fine was less than $300 and did not include alcohol or 

dmgs.) No. 

I Iavc you been arrested by any police officer, sh.rift; marshal OJ' Rny other type of law cnfurcement omeial? 

Nu. 

Have you been charged, convicted, or sentenced ofa crime in any cou:-t? No. 

Have you been Or arc you currently on probation or parole? No, 

Are you currently on trial or awaiting a trial on criminal charges? No. 

To your knowledge, have you ever been the subject or target ofa federal, stale or local criminal investigation? 

No. 

If the answer to any of the questions above is yes, please answer the questions below for 

each criminal event (citation, arrest, investigation, etc,). If the event was an investigation, 

where the question below asks for information about the offense, please offer information 

about the offense under investigation (if known), 

A) Date of offense, 

a, Is this an estimate (Ves/No): 

B) Description of the specific nature afthe offense: 

C) Did the offense involve any orthe following? 

1) Domestic violence or a crime of violence (such as httcry or assault) against your child, dependent, 

cohabilant, spouse, former spouse, or someone with whom you share a child in common: Ves I No 

2) Firearms or explosives: Ves I No 

3) Alcohol or drugs: Yes I No 

14 
94 

D) Location where the offense occurred (city, counly, slale, zip code, country): 

E) Were you arrested, summoned, cited or did you receive a tickelto appear as a result oflhi' offense by any 

police onicer, sheri IT, marshal or any otber lype of law enforcement official: Yes I No 

I) Name of the law enforcement agency that arrestedlcited/sumlmmeu you: 

2) Location of the law enforcement agency (city, COUllty, state, zip code, country): 

F) As a result of this offense were you charged, convicted, currently awaiting trial, and/or ordered to appear in 

court in a criminal proceeding against you: Ves I No 

I) If yes, provid~ the name of the court and the location of the court (city, county, state, 7Jp code, 

country): 

2) Ifycs, provide all tlle charges brought against you for this offense, and the outcome of each charged 

oFfense (such as found guilty, foond not-gUilty, charge dropped or "nolle pros," etc), If you were found 

guilty of ()r pleaded guilty 10 a lesser offense, list separately both tlle original charge and the lesser 

often •• : 

3) If no, provide explanation: 

G) Were you sentenced as a result of this "ffenso: Yes I No 

H) Provide a description of the sentence: 

J) Were you sentenced to imprisonment for a tenn ex,eeding one year: Ves I No 

J) Were you incarcerated as a result of that sentence for not less than one year: Ves I No 

K) If the conviction resulted in imprison:ncnt, provide the dates that you actually were incarcerated: 

L) If conviction resulted in probation or parole, provide the dates of probation or parole: 

M) Are you currently on trial, awaiting a trial, or awaiting sentencing on criminal charges for this offense: Yes I 

No 

N) Provide explanation: 

15 
95 

]0. Civil Litigation and Administrative or Legislative Proceedings 

(A) Since (and including) your 18th birthday, have you been a party to any public record 

civil court action or administrative or legislative proceeding of any kind that resulted in (1) 

a finding of wrongdoing lIgainst you, or (2) a settlement agreement for you, or some other 

person or entity, to make 1I pllyment to settle allegations against you, or for you to take, or 

refrain from taking, some action. Do NOT indude small claims proceedings. I have not. 

(B) In addition to those listed above, have you or any business of which you were aD officer, 

director or owner ever been involved as a party of interest in any administrative agency 

proceeding or civil litigation? Please identify and provide details for any proceedings or 

civil litigation that involve actions taken or omitted by you, or alleged to have been taken or 

omitted by you, while serving in your official capacity. 

1 personally have not. As a member of the MetUfe Board I may have been named in individual 

matters, however, to my knowledge, none of these eases involved allegations of wrongdoing by 

me in my official or individual capacity. Walmart as a company has various proceedings and 

litigation; however, I was not involved in any of these matters. 

16 
96 

(C) For responses to the previous question, please identify and provide details for any 

proceedings or civil litigation that involve actions taken or omitted by you, or alleged to 

have been taken or omitted by you, while serving in your official capacity. 

Please see above. 

11. Breach of Professional Ethics 

(A) Have you ever been disciplined or cited for a breach of ethics or unprofessional conduct 

by, or been the subject of a complaint to, any court, administrative agency, professional 

association, disciplinary committee, or other professional group? Exclude cases and 

proceedings already listed. 

No. 

(C) Have you ever been fired from a job, quit a job after being told you would be fired, left 

a job by mutual agreement following charges or allegations of misconduct, left II job by 

mutual agreement following notice of unsatisfactory performance, or received a written 

warning, been officially reprimanded, suspended, or disciplined for misconduct in the 

workplace, such as violation of a security policy? 

No. 

12. Tax Compliance - REDACTED 

(This information will not be published in the record of the hearing on your nomination, 

but it will be retained in the Committee's files and will be available for public inspection.) 

17 
97 

13. Lobbying 

In the past ten years, have you registered as a lobbyist? If so, please indicate the state, 

federal, or local bodies with which you have registered (e.g., House, Senate, California 

Secretary of State). 

No. 

14. Outside Positions 

19 
98 

l

x See OGE Form 27g,(if for y~~;nomi;:;~lion, you have eo~pt~t~dallOGF~ Form 278 

Executive Branch Personnel Public Financial Disclosure Report, you may check the box here to 

_______ 

complete this section and then 10 the next section,) _ _____ .•• ..1 

}<'or the preceding ten calendar years and the current calendar year, report any positions 

held, whether compensated or not. Positions include but are not limited to those of an 

officer, director, trustce, generlll partner, proprietor, representative, employee, or 

consultllnt of any corporlltion, firm, partnership, or other business enterprise or lIuy nonprofit orgllnization or educational institution. ~ positions with religious, social, 

fraternal, or political entities lind those solely of lin honorllrY nllture. 

I:ill;'l.!!l, 

'"';, ,Onn, Position Held Position Name of Addressor partnership, other 

OrganizaliQU OrganizatiQn business enterprise. Position Held fmm Held To 

other non .. profit (month/year) (month/year) 

orga.'1ization. 

educational 

instillltion) 

'.--.,.-~ 

15. Agreements or Arrangements 

Sec F~;m 278, (If: for you~n-;'minalion, you have"~~;plcteia;;'-OGE ri~rm 278--~'-1 

Executive Braneh Personnel Public Financial Disclosure Report, you may check the box he.r .. e to I 

complete this section and then proceed to the next section.) --.-J ------_ ...... _-,,- ......... _---_.,.. .., .... , .. 

As of the date of filing your OGE Form 278, report your agreements or arrangements for: 

(1) continuing participation in an employee benefit plan (e.g. pension, 401k, deferred 

compensation); (2) continuation of payment by a former employer (including severance 

payments); (3) leaves of absence; and (4) future employment. 

Provide information regarding any agreements or arrangements you have concerning (1) 

future employment; (2) a leave of absence during your period of Government service; (3) 

continuation of pllyments by II former employer other than the United States Government; 

and (4) continuing participation in an employee welfare or benefit plan maintained by a 

former employer other than United States Government retirement benefits. 

20 

!.'!!!1£ 

(month/year) 
99 

16. Additional Financial Data - REDACTED 

All information requested under this heading must be provided for yourself, your spouse, 

and your dependents. (This information will not be published in the record of the hearing 

on your nomination, but it will be retained in the Committee's files and will be available for 

publie inspection.) 
SIGNATURE ,\ND DATE 

I hereby state that I have read the foregoing Statement on Biographical and Financial Information and that the infor

provided therein is, to the best of my knowledge, current, accurate, and complete. 

L )11 tuuA Ie£! '0-

This 2b day of 2013 

26 
101 

Senator Heidi Heitkamp 

Additional Questions for the Record 

Nomination of Sylvia M. Burwell to be Director, Office of Mauagement and Budget 

April 9, 2013 

I. During our previous meeting, we had a chance to discuss efforts to address water supply 

issues in the Red River Valley of North Dakota during times of drought and the work of the 

Bureau of Reclamation and the state of North Dakota the past several years to identify the 

best options to meet the water needs in the region. As you know, the Bureau of Reclamation 

selected a preferred alternative to meet the water needs of the region after a lengthy study 

and review, but the Record of Decision on the project has not advanced. Will you commit to 

working with me to identify viable options to advance this project? 

Response: If confirmed, I would be happy to work with you and the Bureau of Reclamation on this 

issue. 

2. I also wanted to touch on another important issue for my state and that is flood protection for 

the city of Fargo, North Dakota. Fargo, which is our state's largest city, is facing another 

flood this spring from the Red River, which forecasters are predicting could be the fiflhworst flood on record. I have appreciated the Administration's past support in advancing 

permanent flood protection for the region by providing funding in the budget for 

engineering. planning and design. The federally recommended plan involves a diversion 

channel to protect the area from future flooding. The diversion is the best plan because it 

would reduce average annual damages by more, benefit more people and protect more 

structures all without increasing federal expenditures. Significant non-federal resources have 

already been allocated to the project from the state of North Dakota and through local sales 

taxes approved by voters. Authorization for the project is currently included in the Water 

Resources Development Act approved by the Environment and Public Works Committee 

last month. Will you commit to working with me to continue advancing this critical project 

as it moves from design to construction? 

Response: I share the President's commitment to cost-effective investment in the Nation's 

infrastructure to help lay the foundation for long-term economic growth. I am not familiar with the 

specific details of this particular project. If confirmed, I would be glad to work with you to 

determine how best to proceed. 
102 

Senator Mary L. Landrieu 

Additional Questions for the Record 

Nomination of Sylvia M. Burwell to be Director, Office of Management and Budget 

April 9, 2013 

1. Section 904( c) under General Provisions (Title IX) of the Disaster Relief Appropriations Act 

of2013 (PL 113-2) requires expenditure of obligated funds by grantees within two years 

unless, in accordance with guidance to be issued by the director of the Office of 

Management and Budget (OMB), the Director waives this requirement for a particular grant 

program and submits a written justification for a waiver. Lengthy environmental impact 

reviews and other regulatory requirements must happen before any dirt gets turned. Due to 

the catastrophic scale of Hurricane Sandy, major infrastructure projects like subways, water 

trcatment plants and housing developments will take longer than two years to rebuild. It 

seems there is no good policy reason to set an arbitrary and umealistic two-year deadline. 

Housing and Urban Development (HUD) officials and the President's Sandy Recovery 

Commission seem to inherently grasp this reality. Given these facts, would you not agree 

that the two-year deadline is umealistic for large projects, creates unnecessary uncertainty 

across the entire recovery enterprise, and should therefore be waived by OMB without 

delay? 

Response: I share the President's belief that we must take seriously the long-term rebuilding of this 

critical region and its infrastructure. While ensuring the swift outlay of these fimds is an important 

objective, it is also imperative that we have a process for ensuring long-term projects are completed 

in an efficient and ~fJective way. If confirmed, I would work to make sure all long-term recovery 

projects are reviewed swiftly while making surefund~ are spent with the utmost care. 

2. The Metropolitan Transportation Authority (MT A) is one of the few transit systems in the 

United States that runs 24 hours a day, 7 days a week. The subway system alone carries 

nearly 6 million people a day. In order to possibly meet the 24-month requirement for some 

projects, the MT A would be forced to shut down an entire subway line that already carries 

one million people a day. The New York City region is the nation's largest regional 

economy and contributes II percent of the nation's GDP. It simply cannot function without 

the MT A. In order for the MTA to effectively rebuild from the largest disaster to ever strike 

the 108 year-old system, when will the OMB issue a waiver to the 24-month requirement for 

critical transportation repair and mitigation projects under the jurisdiction of the Department 

of Transportation and the Federal Emergency Management Agency (FEMA)? 

Response: If confirmed, J would look into this issue. 

3. As you know, I vigorously supported the $16 billion in Community Development Block 

Grant (CDBG) funding that was approved by Congress and signed into law on January 29, 

2013 as part of the Disaster Relief Appropriations Act of2013 (PL 113-2). On March 5, 

2013, HUD issued a Notice in the Federal Register allocating $5.4 billion of this amount. 

The Notice states that "[t]he Department is instituting an alternative requirement to the 

provisions at 42 U.S.C. 5305(a) as follows: when grantees under this Notice provide funds 

to for-profit businesses, such funds may only be provided to a small business, as defined by 

the SBA under 13 CFR Part 121. CDBG-DR [Disaster Recovery 1 funds made available 
103 

under this Notice may also not be used to assist a privately-owned utility for any purpose." 

Notice, p. 69. 

This HUD "alternative requirement" approved by OMB is inconsistent with existing law in 

42 USC 5305(a)(l7). Specifically: 

Congress expressly chose not to restrict eligibility for CDBG funds for for-profit entities to 

small business. In fact Senate language in the Disaster Relief Appropriations Act, 2013 

specifically stated that funds may be provided to eligible for-profit enterprises. Notice, pp. 

90-91. 

Congress did not change existing law with the Disaster Relief Appropriations Act, 2013. 

Under 42 U.S.C. 5305 (a)(l7)(C), CDBG funding can be used to provide assistance to 

"private, for-profit entities, when the assistance .... meets urgent needs." 

In its disaster relief request to Congress, lIUD expressed the view that but for "limited 

exceptions related to small businesses that face long-tenn business disruption, public 

resources should not be used to ... pay for repairs to privately-owned business assets." 

Again, however, under the Disaster Relief Appropriations Act, 2013, Congress did not limit 

CDBG assistance to for-profit entities only to small businesses. 

I am concerned by reports that HUD guidance for future allocations of the supplemental 

CDBG funding will include the same alternative requirement restricting eligibility. OMB's 

approach to this matter raises two important issues that arc set out below for your 

consideration and response. 

a). Since Congress chose not to exclude private utilities, what is OMB's legal 

authority for an alternative requirement? 

b). Will OMB's subsequent allocations of the CDBG funding provided through PL 

113-2 give state and local officials the flexibility provided under the statute and 

lIUD's regulations to use funds for privately-owned utility infrastructure repair? If 

not, why not? 

Response: I share the President's belief that we must take seriously the long-term rebuilding of this 

critical region, and I am committed to working to help the Northeast recover from Hurricane 

Sandy. I am not aware of what decisions may have been made on CDBG a/locations, but if 

confirmed, [would work with HUD and the Hurricane Sandy Task Force to make sure that 

a/locations are in the best interest ofraxpayers and effectively support the long-term recovery of the 

region. 
104 

Senator Ron Johnson 

Additional Questions for the Record 

Nomination of Sylvia M. Burwell to be Director, Office of Management and Budget 

April 9,2013 

I. GAO found that agencies did not publish a notice of proposed rulemaking (NPRM) for 

about 35 percent of major rules. This number has doubled from 18 percent in 1998. GAO 

also found that when agencies did ask for and respond to public comment, the new rules 

were often better and less costly than the ones originally proposed by the agency. GAO 

recommended that OMB issue guidance to encourage agencies to respond to comments on 

final major rules, for which the agency has discretion, that are issued without a prior NPRM. 

OMB disagreed that guidance would offer substantial beneiits. Do you believe that rules can 

be improved when agencies solicit and respond to public comment? Do you think that it is 

important for the public to be able to comment on proposed rules, and to have agencies 

respond to these comments? Will you direct agencies to respond to public input that is 

received when agencies solicit public comment? 

Response: I believe that public comment is a crucial component ofsuccessfid rulemaking. Indeed, 

the Administration emphasizes the importance of consulting stakeholders likely to be affected by 

rulemakings. If confirmed, I would oversee closely the use of interim final rules to ensure they are 

used lawful(v and appropriately. and that agenCies proceed to finalizing such rules after taking 

public comments into consideration. 

2. The Small Business Administration Office of Advocacy estimates that there is a $1.75 

trillion annual regulatory burden on our economy. This is larger than all but eight global 

economies. Do you acknowledge that our national annual regulatory burden is extremely 

large and burdensome to small businesses? 

Response: I appreciate the importance of ensuring that our regulatory system is consistent with a 

healthy economy and successfiil small businesses. I know that the President cares deeply about 

small businesses and about minimizing unnecessary regulatory burdens. I understand that the 

President issued a memorandum in January 2011 instructing agencies to focus on the issue of 

reducing the burden of regulations on small businesses. 

3. What are some of the proposals that you have heard being proposed in Congress that you 

would like to see enacted in order to alleviate some of the regulatory burden placed on our 

nation and economy? 

Response: We start from common ground I believe that the Federal Government should not impose 

unjustified regulatory costs. There are a wide range of legislative proposals in the regulatory area 

that Members of Congress have put forward I am not currently in a position to weigh in on the 

specifics of legislation. If confirmed, I would work to ensuring that our regulatory systemfimctions 

in a cost-effective manner consistent with economic growth and job creation. while continuing to 

protect the health welfare and safety of Americans. 
105 

Senator Ron Johnson 

Additional Questions for the Record 

Nomination of Sylvia M. Burwell to be Director, Office of Management and Budget 

April 9, 2013 

4. Executive Order 13563, issued by President Obama on Jan. 21, 2011, directed agencies to 

promote public participation in rulemaking and make the process more transparent, reduce 

redundant, inconsistent, or ovcrlapping regulations, identify and consider flexible 

approaches to problems, promote scientific integrity; and produce plans for retrospective 

review of regulations. Do you believe that it is important for agencies to conduct thorough 

retrospective review of their own rules? How will you ensure that agencies comply with 

Executive Order 135663 in a timely manner? 

Response: I believe retrospective review of regulations is important, which is why the President 

calledfor a historic government-wide review ofregulations on the books to streamline, modify, or 

repeal regulations and reduce unnecessary burdens and costs. As I understand it, agencies issued 

lookback plans and detailed over 500 initiatives that will reduce costs. simplify the regulatory 

system. and eliminate redundancy and inconsistency. The Administration estimated that these 

initiatives will save more than $10 billion in the near term, with/clr more savings to come. 

With respect to implementation, Executive Order 13610 requires agencies to submit reports to 

OMB twice a year updating the status of their retrospective review efforts. If confirmed. I look 

forward to ensuring that agencies continue to build on the success of the retrospective review 

efforts to date. 
106 

Senator Carl Levin 

Additional Questions for the Record 

Nomination of Sylvia M. Burwell to he Director, Office of Management and Budget 

April 9, 2013 

I. Is it your understanding that cost benefit analyses at independent agencies, induding those 

involved in financial regulation and enforcement and consumer product safety, are currently 

inadequate to ensure the agencies' abilities to carry out their important duties? 

Response: No. During my prior tenure at OMB, OMB did not perform a review of the independent 

agencies' standards for cost-benefit analyses. I am not in a position to speak to the overall quality 

of analyses conducted by independent agencies. These analyses cover a wide range of subject 

matters, and are the result of varying cost-benefit requirements, many of which are statutorily 

defined. I appreciate the long tradition, and unique roles of the independent agencies, and believe 

in the importance of their continued independence. 
107 

Senator Coburn 

Additional Questions for the Record 

Nomination of Sylvia M. Burwell to be Director, Office of Management and Budget 

April 9, 2013 

I.The Social Security Actuary recently estimated the Disability Trust fund could be exhausted as 

early as 2015 and unable to pay full benefits. Press reports indicate the president's budget may 

include a proposal to limit individuals from receiving unemployment benefits and SSDI payments, a 

concept I support. Outside of this initial reform, what reforms to the Social Security Disability 

Insurance program do you see as necessary? 

Response: The Disability Insurance (DI) program provides vital income support to workers with 

disabilities and their family members. The Social Security trustees project that on a combined basis. 

the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds will be 

solvent through 2033. J[owever. by itself the DI Trust Fund will be exhausted in 2016, based on the 

trustees' intermediate assumptions. This underscores the need fi)r bipartisan action to strengthen 

Social Security. for which the President has called. 

As you noted, the President's Budget includes a legislative proposal to reduce an individual's DI 

bene/it in any month in which that person also receives a State or Federal unemployment bene/it. In 

addition, to help protect the trust fimds, the President's Budget proposes to fund a historic number 

of medica I eligibility reviews to make certain that only those ben~ficiaries who remain eligiblefor 

benefits continue to receive them. 

If confirmed. I would look into additional measures that would safeguard both the DI and OASI 

programs for the long run. 

2.Thc majority of disability claimants are represented at their hearings before SSA's administrative 

law judges. Becausc of this, both the Social Security Advisory Board and the Union of 

Administrative Law Judges support that a representative of the government also be included at the 

ALl hearing to explain or defend the agency's previous decision not to award disability benefits. Do 

you also support such a refonn? 

Response: I am not in a position to weigh in on the specifics o/the hearing process at this time; 

however I recognize the importance[or applicants andfor taxpayers o[getting the highest-quality 

decisions from ALJs. 
108 

Senator Coburn 

Additional Questions for the Record 

Nomination of Sylvia M. Burwell to be Director, Office of Management and Budget 

April 9, 2013 

3.Every year the government spends more than $2.5 trillion on thousands of government programs, 

few with tangible, measureable results. While many are in fact meeting the needs of those they 

serve, in countless cases, it is nearly impossible to measure the outcome or success rate of many 

federal efforts. Right now very few government programs are subject to real metrics or performance 

evaluations to determine if they are meeting the goals set at their creation. This not only does a 

disservice to taxpayers who should "get what they pay for," but even more, harms those relying on 

these programs and the services and assistance they are meant to provide. 

Outside of implementing the mandates placed on OMB by the updated GIPRA law, what 

specific actions do you plan to take to take to hold agencies accountable for the 

effectiveness of their programs? 

Response: The GPRA Modernization Act provides a solidfoundation andframeworkfor achieving 

significant performance improvements across Government, but '>vi!! not be sufficient to make lasting 

progress if agencies fail to change their culture. If confirmed, I would work closely with leaders 

across the Administration and with the Congress to ensure the sustainability of the Act'sfocus on 

impact using goals and its robust emphasis on measurement to improve outcomes/i)r the American 

people. 

4.0MB is largely responsible for administering many of the government's current transparency 

efforts, which continue to need to be updated, improved, and expanded. For example, OMB is 

responsible for USAspending.gov, the Google-style government website established by a law in 

2006. Currently many agencies fail to comply with the law for USAspending reporting, and the 

website's data quality is poor. This and other transparency efforts should be a high priority for this 

administration and the Office of Management and Budget. What will be your approach to 

addressing this concern with agency compliance for of current transparency laws? 

Response: I believe that there has been significant progress made in Federal spending transparency 

through the implementation of USAspendinggol' and reporting of Recovery Act dollars on 

Recovery.gol'. I believe this is work that must be continued, and hope bothfimding and an 

operational home will help. If cOl?firmed, I lookjorward to working with Congress to continually 

drive these efforts jorward. 

5. For the past decade, OMB has been required by law to ensure federal computers and 

networks arc secure. Yet dangerous gaps remain. In fact, this year OMB's own reporting 

shows agencies lost ground in protecting their technology from malicious actors, despite 

spending almost $15 billion on IT security. What are your plans to make sure OMB starts 

living up to the mandate Congress imposed upon it with the Federal Information Security 

Management Act (FISMA)? 
109 

Re;ponse: From what 1 understand, the Administration is making strides to improve the safety and 

security of the Government's information. An integral component of this work is to change how the 

Government thinks about cybersecurity by shijiingfrom a focus of compliance to one which tracks 

key performance metrics to ensure agencies are given the tools to protect their systems ji'om threats 

as rhey arise. This approach, known as continuous monitoring. allows a shift across the 

Government to use inji)rmation security as an enabler. instead of a limitingfactor. in harnessing 

technological innovation. 

A key element to managing an information security program is having accurate in/ormation about 

security postures, activities and threats, and making sure our efforts continuously evolve as 

technologies do. If confirmed, my staff and I will work with DHS to ensure a well-designed and 

well-managed infiJrmation security continuous monitoring program to protect our nation 's critical 

data. 

6.The federal government holds more critical data -- security plans and weaknesses for nuclear or 

chemical facilities, commodities data which moves markets, trillions of dollars in loans, valuable 

scientitic research -- than any other entity in the world. It also holds more sensitive information on 

private citizens than anyone else. Are you prepared to be held accountable the next time a 

government entity is penetrated, valuable data is stolen or operations interrupted? 

Response: It is my understanding that the Federal Information Security Management Act (FISl'vlA) 

requires the head of each agency to provide information security protections commensurate with 

the risk and magnitude of the harm resultingfrom unauthorized access, use. disclosure. disruption. 

modijication. or destruction of information collected or maintained by or on behalf of the agency; 

and information systems used or operated by an agency or by a contractor of an agency or other 

organization on behalfof an agency. If confirmed, 1 will work with agencies to ensure that they are 

./illfilling their requirements in accordance with FISMA. as well as related policies, standards and 

guidelines. 

7.Will you assist this committee in any effort it makes to improve federal cybersecurity -- including 

overseeing federal IT security efforts, investigating breaches, and reforming laws and policies 

governing federal cybersecurity? 

Response: The President has made clear that cybersecurity remains a critical priority. If confirmed, 

I would make cybersecurity and the protection of our information assets a priority of my role. I 

would keep a dialogue with the Committee on this critical issue and help to continue the great work 

both the Administration and the Committee have done in this area. 

8.In 2010, OMB delegated responsibility for certain tasks to the Department of Homeland Security. 

Are you familiar with their efforts? 

a.Do you believe DHS cybersecurity efforts undertaken on OMB's behalf are well-managed, 

suitably designed, and being implemented on time and under budget? 

b.Do you have any concerns at all about DHS' work fulfilling Congress' mandate to secure 

federal technology? 
110 

Senator Coburn 

Additional Questions for the Record 

Nomination of Sylvia M. Burwell to be Director, Office of Managemeut and Budget 

April 9, 2013 

If you or your staff have any concerns at all about DHS's work in this area, will you bring 

them to the Committee in a timely manner, to ensure we can fulfill our obligations to 

oversee the department and federal cybersecurity? 

Response: 1 am aware that in 2010, OMB delegated certain operational responsibilities to DHS and 

that OMB continues to retain policy and oversight responsibilities. However, at this time, 1 am not 

familiar with how well DHS is implementing the FISMA responsibilities delegated to it. If 

confirmed. 1 intend to review DlfS's actions in this area to ensure they are effective. 

As the President has said, the cyber threat is one of the most serious economic and national security 

challenges we face as a nation. I believe this is an area that receives and will continue to require 

high-level attentionfrom Government leaders. If 1 am confirmed, I will ensure OMB continues to 

work chisely with DHS to implement cybersecurity programs that are both effective and efficient. 

Every agency in the Us. Government has a role to play in cybersecurity whether in securing its 

own network or more wide-ranging responsibilities. Because of the diverse nature of authorities 

and responsibilities, cybersecurity truly requires a whole-of:Government approach. Ongoing 

congressional involvement will continue to be key to any cybersecurity solutions. If confirmed, 1 

would lookforward to working with Congress on any matters in this area that require attention. 

9.Have you reviewed recent reports on regulatory issues, such as the reports issued by the 

President's Council on Jobs and Competitiveness last year, or the Business Roundtable's 

report titled "Achieving Smarter Regulation?" I recall that in June last year, Boeing CEO 

Jim McNerney -- a member of the President's Jobs Council -- said that "It's different today," 

that regulators take a hostile approach to business and companies are "guilty until proven 

innocent." Do you have any views or reactions to these reports and observations? Will you 

be an advocate for improving the regulatory process? If so. can you tell us some of the areas 

that you would like to see improved? 

Response: I am generally aware o/these reports, but have not had the opportunity to review them in 

any detail. As a general matter, 1 do believe that in difficult economic times, it is especially 

important that the Federal Government not impose unjustified regulatory costs. 1 also think that is it 

very important that business and companies, as well as other stakeholders, participate in the 

regulatmy process. 

1 believe the President's callfor a government-wide retrospective review of regulations is very 

importalit and, ilconjirmed, Ilook/orward to ensuring that ~tfort continues to produce results. In 

addition, 1 know the Administration has been working to advance international regulatory 
111 

cooperation, which will promote American exports, economic growth and job creation by helping 

to eliminate unnecesswy regulatory differences between the United States and other countries. 

If confirmed, I would lookforward to working with the business community and other stakeholders 

to ensure we promote job creation and innovation while protecting the health welfare, and safety of 

Americans. 

10.Under Executive Order 13563, issued on January 18th, 2011, President Obama required 

regulatory agencies to explicitly consider the cumulative costs of regulations. On March 20, 2012, 

the OIRA Administrator issued a memorandum to agencies to consider cumulative impacts as part 

of agency analysis of particular rules and the timing of these rules. In your opinion, are federal 

agencies efTectively implementing this particular Presidential directive? 

Response: I am not currently at OMB, and therefore, I am not in a position to speak 10 how 

effectively agencies are implementing these directives. I agree that it is important to take into 

consideration the cumulative effects of new and existing rules. I also believe that, where possible, 

agencies should seek ways to simplify requirements on the public and private sectors. If confirmed, 

I would lookforward to learning more about implementation of the President's directive and would 

certainly welcome any inputfrom you or others on the issue. 
112 

Senator Thomas Carper 

Additional Questions for the Record 

Nomination of Sylvia M. Burwell to be Director, Office of Management and Budget 

April 9, 2013 

1. The Department of Labor (DOL) is currently working on fiduciary regulations that appear to 

be closely interrelated to regulations that the Securities and Exchange Commission (SEC) is 

working on in accordance with the Dodd-Frank Wall Street Reform and Consumer 

Protection Act. A SEC staff study, consistent with the Act, recommended that broker-dealers 

be subject to a fiduciary standard of care. It is currently unclear how the SEC will proceed, 

yet the DOL continues to work on a proposal of its own. As you know, OMB is responsible 

for ensuring proper coordination in the rulemaking process across agencies. Should the DOL 

be coordinating its proposal with the SEC in order to prevent any confusion arising from 

differences between the rules governing regular retail brokerage accounts and IRA 

accounts? 

Response: I am notfamiliar with the specifics of this rulemaking. I also recognize that the Securities 

and Exchange Commission (SEC; is an independent agency. That said the President in Executive 

Order 13563 emphasized the importance of coordinating and harmonizing rules. If confirmed I 

would continue to lookfor ways fo coordinate and harmonize rule makings where possible. 
113 

Senator Rob Portman 

Additional Questions for the Record 

Nomination of Sylvia M. Burwell to be Director, Office of Management and Budget 

April 9, 2013 

1. The President's Job Council called for reform of permitting in part by giving OMB a larger 

management role. The Council wrote: "The current system for permitting and approving 

job-creating projects ... can lead to delays, litigation, and inconsistent standards. The 

permitting systems for infrastructure projects must be streamlined to eliminate duplication 

and unnecessary delays." 

a.Do you agree with the Job Council's assessment of the problem? 

b.How do you plan to strengthen and expand on the Federal Infrastructure 

Pennitting Dashboard and OMB's other efforts to reform permitting? 

c.What are your thoughts on a possible role for OMB in streamlining the federal 

permitting process through bettcr coordination, deadlincs and transparency? 

Response: As the President's Jobs Council correctly noted, the permitting and review of 

in/i'astructure projects can lead to delays, litigation and inconsistent standards. To improve the 

process, President Obama signed Executive Order 13604 in March 2012 launching a Governmentwide iniliative 10 improve the performance of Federal permitting and review of infrastructure 

projects. According 10 the Federal1nfi'aslructure Permitting Dashboard, agencies expedited the 

review and permitting of more than 40 major infrastructure projects to date, including bridges, 

transit projects, railways, waterways, road~, and renewable energy generation projects, with time 

savings ranging/i'om several months to several years. 

If confirmed, J would continue OMB's leadership efforts, both through the Chief Performance 

Officer's chairmanship of the interagency Steering Committee on infrastructure permitting and 

through OMB's role stewarding performance management across the Government. I would support 

this goal by continuing to strengthen, expand, and institutionalize best practices. 

2. Please provide an up-to-date list of proposed (NPRM stage) and final regulatory actions 

taken by executive agencies as part of the retrospective review launched by Executive Order 

13563, "Improving Regulation and Regulatory Review," along with the estimated cost 

savings and sources for those estimates. 

Response: Since J am not current(v at OMB, J am not in a position 10 provide such a list. However, 1 

understand that the reports agencies produced as part of the retrospective review effort are posted 

on their websites. 
114 

Senator Rob Portman 

Additional Questions for the Record 

Nomination of Sylvia M. Burwell to be Director, Office of Management and Budget 

April 9, 2013 

3. For nearly three decades, presidents of both parties have published their plans for new 

regulations twice a year. That transparency measure is required by Executive Order 12,866 

and by the Regulatory Flexibility Act, which calls for publication of a spring and fall 

regulatory agenda. The semiannual agenda is important because it helps the public and 

regulated parties better understand new rules in the pipeline - including potential 

compliance costs and effects on small businesses. 

As its title suggests, the Spring Regulatory Agenda is published in the spring - April or May 

and the Fall Agenda appears in October or November. Last year, fonner OIRA Administrator Cass 

Sunstein set April 13, 2012, as the "finn deadline" for agencies to submit their spring regulatory 

plans to the Office of Management and Budget. 

But without explanation, the Spring Agenda was never released, for the first time in decades to my 

knowledge. Instead, again without explanation, OMB released a single regulatory agenda -- on 

Friday, December 22. 

I wrote the President about the missing agendas in August and December, yet received no rcply. In 

addition, in a November 30th letter to OIRA, the American Bar Association's Section on 

Administrative Law called the Administration's failure to timcly publish these regulatory plans "an 

unfortunate precedent." 

In your briefing as a nominee, have you learned why OMB decided to skip the Spring agenda? 

Does it represent a policy change? 

Will you commit to this Committee to produce the semiannual regulatory agenda on time and as 

required by law and executive order - the Spring Agenda by April/May and the Fall Agenda by 

October/November? 

Response: As a nominee. I do not have access to any information about decisions that the 

Administration mayor may not have made about the Unified Regulatory Agenda. If confirmed, I 

would work 10 produce the Unified Regulatory Agenda in a timely manner. 
115 

Senator Tom Carper 

Senate Homeland Security and Governmental Affairs Committee 

Additional post hearing question for the record for the nomination hearing of 

Sylvia M. Burwell to be director of the Office of Management and Budget 

April 15, 2013 

I. When Congress enacted the Affordable Care Act three years ago, we included a provision that 

I co-authored, designed to make it easier for employers to run effective wellness programs for 

their employees. Even before health reform was passed, companies designed outcomes-based 

wellness plans that provided incentives for people to take better care of their health, in 

accordance with regulations in place since 2006 under the Health Insurance Portabi lity and 

Accountability Act (HIPAA). The provision in the ACA, that I offered as an amendment, was 

intended to codify those well ness program regulations and in addition, to allow for greater 

rewards for employees within the context of those existing rules. 

However, I am troubled that the Administration's proposed rule published in November, entitled 

"Incentives for Nondiscriminatory Wellness Programs in Group Health Plans," might 

unintentionally take a step in the wrong direction, by substantially departing from the regulations 

that have been in place since 2006 and were reinforced in the ACA. Specifically, I am 

concerned that these departures from existing regulatory requirements might have the effect of 

disallowing existing effective wellness programs, thereby actually undermining the purpose of 

the wellness provisions of the ACA. 

What will you do to ensure that, as OMS fulfills its regulatory review functions with respect to 

this rulemaking, the final rule implements the purposes of the ACA in this respect and does not 

inadvertently disallow existing effective well ness programs? 

I am not familiar with the specifics of this proposed rulemaking. However, I recognize 

the importance of wellness programs for cost-effective and quality health care. If 

confirmed, I look forward to learning more about this issue. 
116 

Æ 

Senator Joe Manchin III 

Statement in Support of Sylvia Mathews Burwell, Nominee for Director of the Office of 

Management and Budget 

Senate Committee on Homeland Security and Governmental Affairs 

April 9, 2013 

Mr. Chairman, thank you for the opportunity to express my support for the nomination of Sylvia 

Mathews Burwell to be the Director of the Office of Management and Budget. She is a great 

West Virginian, from the great town of Hinton, and if confirmed, she will make a great OMB 

Director. 

[ am proud to support Sylvia's nomination for this prestIgIOus pOSItIOn, where she will be 

responsible for managing our federal spending as we make the tough decisions to put our fiscal 

house in order. Sylvia and hcr family represent the heart and soul of Wcst Virginia - a state 

where people arc defined by their deeds as much as their words and Sylvia has already 

accomplished so much in her lifc, in public service and philanthropy. 

That doesn't surprise any of us who are friends with her parents, who have been Hinton business 

and community leaders for over a half century. Her father, Dr. William Mathews, is a longtime 

optometrist, and her mother, the Honorable Cleo Mathews, previously served as the Mayor of 

Hinton. 

Not only did Cleo serve as mayor of Hinton -- she also spent eight years on the State Board of 

Education, and two as President of the board. She latcr chaired the West Virginia Center for 

Professional Development Board, served as Vice President of the National Association of State 

Boards of Education and served on the Board of Directors of the West Virginia Municipal 

League. 

It's casy to see that public service is in Sylvia's DNA. She is proof of the old saying, "the acorn 

does not fall far from the tree." 

As many of you know. Sylvia dedicated the last eleven years to serving the greater good, helping 

the least fortunate among us both in the United States and throughout the world, as a visionary 

leader with the Bill & Melinda Gates Foundation and, more recently, with the Walmart 

Foundation. 

She served as Chief Operating Officer and Executive Director at the Gates Foundation from its 

inception in 2001 until 2006, at which point it was firmly established as a global philanthropic 

leader. Sylvia then transitioncd to the Gates Foundation Global Development Program, where 

she served as President lJntil2012 and led the foundation's $725 million annual effort to improve 

the lives of more than 200 million people worldwide. Under her leadership, the foundation broke 

new ground in pursuing sustainable investments in agricultural development; low-income 

financial services; water and sanitation; global literacy; emergcncy relief; and poverty 

alleviation.