REMARKS BY PRESIDENT OBAMA ON FY2015 BUDGET

FROM:  THE WHITE HOUSE
Remarks by the President Announcing the FY2015 Budget
Powell Elementary School
Washington, D.C.

11:38 A.M. EST

THE PRESIDENT:  Good morning, everybody.  I’m here at Powell Elementary School, and just had a chance to see some of the outstanding students here.  And I thought it was appropriate for me to say a few words about the budget that I sent to Congress this morning -- because obviously the budget is not just about numbers, it’s about our values and it’s about our future, and how well we are laying the groundwork for those young children that I was with just a few moments ago to be able to succeed here in America.  These kids may not be the most excited people in town on budget day, but my budget is designed with their generation and future generations in mind.

In my State of the Union address, I laid out an agenda to restore opportunity for all people -- to uphold the principle that no matter who you are, no matter where you started, you can make it if you try here in America.

This opportunity agenda is built on four parts -- more good jobs and good wages; making sure that we’re training workers with the skills they need to get those good jobs; guaranteeing every child access to a world-class education; and making sure that our economy is one in which hard work is rewarded.

The budget I sent Congress this morning lays out how we’ll implement this agenda in a balanced and responsible way.  It’s a road map for creating jobs with good wages and expanding opportunity for all Americans.  And at a time when our deficits have been cut in half, it allows us to meet our obligations to future generations without leaving them a mountain of debt.  This budget adheres to the spending levels that both parties in both houses of Congress already agreed to.  But it also builds on that progress with what we’re calling an Opportunity, Growth and Security Initiative that invests in our economic priorities in a smart way that is fully paid for by making smart spending cuts and closing tax loopholes that right now only benefit the well-off and the well-connected.

I’ll give you an example.  Right now, our tax system provides benefits to wealthy individuals who save, even after they’ve amassed multimillion dollar retirement accounts.  By closing that loophole, we can help create jobs and grow our economy, and expand opportunity without adding a dime to the deficit.

We know that the country that wins the race for new technologies will win the race for new jobs, so this budget creates 45 high-tech manufacturing hubs where businesses and universities will partner to turn groundbreaking research into new industries and new jobs made in America.

We know -- and this is part of the reason why we’re here today -- that education has to start at the earliest possible ages.  So this budget expands access to the kind of high-quality preschool and other early learning programs to give all of our children the same kinds of opportunities that those wonderful children that we just saw are getting right here at Powell.

We know that while not all of today’s good jobs are going to require a four-year college degree, more and more of them are going to require some form of higher education or specialized training.  So this budget expands apprenticeships to connect more ready-to-work Americans with ready-to-be-filled jobs.  And we know that future generations will continue to deal with the effects of a warming planet, so this budget proposes a smarter way to address the costs of wildfires.  And it includes over $1 billion in new funding for new technologies to help communities prepare for a changing climate today, and set up incentives to build smarter and more resilient infrastructure.

We also know that the most effective and historically bipartisan ways to reduce poverty and help hardworking families pull themselves up is the earned income tax credit.  Right now, it helps about half of all parents in America at some point in their lives.  This budget gives millions more workers the opportunity to take advantage of the tax credit.  And it pays for it by closing loopholes like the ones that let wealthy individuals classify themselves as a small business to avoid paying their fair share of taxes.

This budget will also continue to put our fiscal house in order over the long-term -- not by putting the burden on folks who can least afford it, but by reforming our tax code and our immigration system and building on the progress that we’ve made to reduce health care costs under the Affordable Care Act.  And it puts our debt on a downward path as a share of our total economy, which independent experts have set as a critical target for fiscal responsibility.

As I said at the outset, our budget is about choices.  It’s about our values.  As a country, we’ve got to make a decision if we’re going to protect tax breaks for the wealthiest Americans, or if we’re going to make smart investments necessary to create jobs and grow our economy, and expand opportunity for every American.  At a time when our deficits are falling at the fastest rate in 60 years, we’ve got to decide if we’re going to keep squeezing the middle class, or if we’re going to continue to reduce the deficits responsibly, while taking steps to grow and strengthen the middle class.

The American people have made clear time and again which approach they prefer.  That’s the approach that my budget offers.  That’s why I’m going to fight for it this year and in the years to come as President.  Thank you very much, everybody.

Q    Mr. President?

THE PRESIDENT:  Yes, Mike.

Q    Do you have response to President Putin’s press conference this morning?  Is Chancellor Merkel right that he’s lost touch with reality?  And have you spoken with him again personally?

THE PRESIDENT:  I haven’t spoken to him since I spoke to him this past weekend.  But obviously, me and my national security team have been watching events unfolding in Ukraine very closely.  I met with them again today.  As many of you know, John Kerry is in Kyiv as we speak, at my direction.  He’s expressing our full support for the Ukrainian people.

Over the past several weeks, we’ve been working with our partners and with the IMF to build international support for a package that helps to stabilize Ukraine’s economy.  And today we announced a significant package of our own to support Ukraine’s economy, and also to provide them with the technical assistance that they need.  So it includes a planned loan guarantee package of $1 billion.  It provides immediate technical expertise to Ukraine to repair its economy.  And, importantly, it provides for assistance to help Ukraine plan for elections that are going to be coming up very soon.

As I said yesterday, it is important that Congress stand with us.  I don’t doubt the bipartisan concern that’s been expressed by the situation in Ukraine.  There is something immediately Congress can do to help us, and that is to help finance the economic package that can stabilize the economy in Ukraine, help to make sure that fair and free elections take place very soon, and as a consequence, helps to deescalate the crisis.

In the meantime, we’re consulting with our international allies across the board.  Together, the international community has condemned Russia’s violation of the territorial integrity and sovereignty of Ukraine.  We’ve condemned their intervention in Crimea.  And we are calling for a de-escalation of the situation, and international monitors that can go into the country right away.

And, above all, we believe that the Ukrainian people should be able to decide their own future, which is why the world should be focused on helping them stabilize the situation economically and move towards the fair and free elections that are currently scheduled to take place in May.

There have been some reports that President Putin is pausing for a moment and reflecting on what’s happened.  I think that we’ve all seen that -- from the perspective of the European Union, the United States, allies like Canada and Japan, and allies and friends and partners around the world -- there is a strong belief that Russia’s action is violating international law.  I know President Putin seems to have a different set of lawyers making a different set of interpretations, but I don’t think that’s fooling anybody.

I think everybody recognizes that although Russia has legitimate interests in what happens in a neighboring state, that does not give it the right to use force as a means of exerting influence inside of that state.  We have said that if, in fact, there is any evidence out there that Russian speakers or Russian natives or Russian nationals are in any way being threatened, there are ways of dealing with that through international mechanisms.  And we’re prepared to make sure that the rights of all Ukrainians are upheld.  And, in fact, in conversations that we’ve had with the government in Kyiv, they have been more than willing to work with the international community and with Russia to provide such assurances.

So the fact that we are still seeing soldiers out of their barracks in Crimea is an indication to which what’s happening there is not based on actual concern for Russian nationals or Russian speakers inside of Ukraine, but is based on Russia seeking, through force, to exert influence on a neighboring country.  That is not how international law is supposed to operate.

I would also note just the way that some of this has been reported, that there’s a suggestion somehow that the Russian actions have been clever strategically.  I actually think that this has not been a sign of strength but rather is a reflection that countries near Russia have deep concerns and suspicions about this kind of meddling, and if anything, it will push many countries further away from Russia.

There is the ability for Ukraine to be a friend of the West’s and a friend of Russia’s as long as none of us are inside of Ukraine trying to meddle and intervene, certainly not militarily, with decisions that properly belong to the Ukrainian people.  And that’s the principle that John Kerry is going to be speaking to during his visit.  I’ll be making additional calls today to some of our key foreign partners, and I suspect I’ll be doing that all week and in through the weekend.

But as I indicated yesterday, the course of history is for people to want to be free to make their own decisions about their own futures.  And the international community I think is unified in believing that it is not the role of an outside force -- where there’s been no evidence of serious violence, where there’s been no rationale under international law -- to intervene in people trying to determine their own destiny.

So we stand on the side of history that I think more and more people around the world deeply believe in -- the principle that a sovereign people, an independent people are able to make their own decisions about their own lives.  And Mr. Putin can throw a lot of words out there, but the facts on the ground indicate that right now he’s not abiding by that principle.  There is still the opportunity for Russia to do so, working with the international community to help stabilize the situation.

And we’ve sent a clear message that we are prepared to work with anybody if their genuine interest is making sure that Ukraine is able to govern itself.  And as I indicated before, and something that I think has not been emphasized enough, they are currently scheduled to have elections in May.  And everybody in the international community should be invested in making sure that the economic deterioration that’s happened in Ukraine stops, but also that these elections proceed in a fair and free way in which all Ukrainians, including Russian speakers inside of Ukraine, are able to express their choice of who should lead them.

And if we have a strong, robust, legitimate election, then there shouldn’t be any question as to whether the Ukrainian people govern themselves without the kinds of outside interference that we see Russia exerting.

All right, thank you very much, everybody.

END

HIGHLIGHTS FROM THE 2014 EDUCATION BUDGET

FROM: U.S. DEPARTMENT OF EDUCATION
Obama Administration 2014 Budget Prioritizes Key Education Investments to Provide Opportunities for All Americans

The Obama Administration continued to prioritize education in the 2014 budget released today by proposing key investments in education that would strengthen the middle class, grow the economy and provide opportunities for success to all Americans – especially our nation's most vulnerable children. Without adding to the deficit, the President’s FY 2014 budget invests $71 billion in discretionary funding for the Department, an increase of 4.5 percent over the FY 2013 pre-sequester level.

"We must continue to build on the reforms already transforming classrooms across the country," said U.S. Secretary of Education Arne Duncan. "Strategic investments in our educational system will not only provide more opportunities for millions of Americans, but they will strengthen our nation's workforce as well."

The cornerstone of the President's education investments will expand high-quality early learning opportunities to all 4-year-olds from low- and moderate-income families. Studies show that these children have less access to high-quality early education and are less likely to enter school prepared for success – creating an educational opportunity gap that can shadow them for the rest of their lives. The President’s budget proposal will not only help close the gap by providing America’s youngest learners a strong start, it will also pay dividends down the road in higher graduation rates, increased employment, better jobs at higher salaries, greater tax revenue, and lower crime and reliance on public assistance.

President Obama's Preschool for All proposal would invest $75 billion over 10 years in separate, fully offset mandatory funding to create new partnerships with states and provide high-quality preschool to more communities, helping ensure that all children enter kindergarten ready to learn. In addition, the 2014 budget provides $750 million in complementary discretionary funds to help states strengthen their early learning systems and prepare to expand access to high-quality preschool. The U.S. Department of Education also will work closely with the U.S. Department of Health and Human Services to significantly expand and improve services to younger children through Head Start.

"Preschool is one of the smartest and most critical investments we can make," Duncan said. "By getting our children off to a strong start, we not only increase their individual chances for lifelong success, but also ensure our entire nation is on the path to a strong future."

Including Preschool for all, the President's education investments are targeted to strengthen the education pipeline from cradle to career. The President has also proposed to:
Further the K-12 reform agenda by investing in teachers and leaders, school turnaround efforts, and STEM programs, as well as increase investments in what works.
Keep schools and communities safe through an Administration-wide plan to protect our children and neighborhoods from gun violence.
Redesign the high school experience and increase career readiness of high school students, as well as adult learners.
Make college more affordable and improve quality by incentivizing states and institutions to do their part in controlling costs and providing good value.
Provide ladders of opportunity to the middle class through a robust Promise Neighborhoods program and investments in low-income communities.
Further the K-12 reform agenda
Building on the momentum for state-level reform, President Obama has proposed a set of strategic investments to drive change in the nation’s K-12 school systems.
Invest in teachers and leaders: To elevate the teaching profession and strengthen great leaders, the Administration is proposing significant investments, including $5 billion in one-time mandatory funds for the RESPECT initiative to support efforts to transform the teaching profession, as well as $3 billion for the new Excellent Instructional Teams program. The Excellent Instructional Teams program would fund states’ and districts’ efforts to increase the effectiveness of teachers and principals and includes $400 million for a Teacher and Leader Innovation Fund, $98 million for a School Leadership Grant Program and a 25 percent set-aside ($617 million) within the $2.5 billion ESEA Title II State Grants program. A complementary $190 million mandatory investment in Presidential Teaching Fellows would provide scholarships to students in top-tier teacher preparation programs who commit to teaching in high-need schools and subjects.
Turn around low-performing schools: To strengthen educational opportunities for all students, the Administration is proposing to invest $659 million in School Turnaround Grants, including a $125 million increase to support and sustain local efforts to reform the lowest performing schools and expand the School Turnaround AmeriCorps initiative.
Strengthen STEM programs: Only 16 percent of American high school seniors are proficient in mathematics and interested in a STEM career, and the nation faces a skills gap in its workforce. The Administration is proposing $150 million for STEM Innovation Networks to create effective strategies for improving STEM education, $35 million to establish a STEM Master Teacher Corps, and $80 million to recruit and train effective STEM teachers for high-need schools.
Expand what works: The President's Investing in Innovation (i3) competition has supported efforts across the country to develop solutions to some of education’s greatest challenges. The 2014 budget increases funding for the i3 program to $215 million in order to expand support for using an evidence-based approach to test new ideas, validate what works, and scale up the most effective approaches in high-need areas.
Keep schools and communities safe
In January, President Obama released his plan to reduce gun violence, make schools safer, and increase access to mental health services. The 2014 request includes new investments in support of that plan’s common-sense proposals. These investments, which would be coordinated with related proposals at the Department of Justice and the Department of Health and Human Services, will help create safer and more nurturing school climates that help prevent school violence. Key proposals include $50 million for School Climate Transformation Grants, $30 million for improved emergency management planning and $25 million for Project Prevent grants to help districts in communities with pervasive violence to break the cycle of violence.

Redesign the high school experience and increase career readiness
To compete in a global economy, Americans need some form of postsecondary education – whether that’s a 4-year degree, 2-year degree or postsecondary certificate. To help to engage high school students as well as meet the needs of adult learners, the Obama Administration has detailed plans to redesign high schools and career and technical education (CTE) programs, aligning them with the skills and knowledge that employers need. The Administration is also renewing its $1.1 billion proposal for a reauthorized Carl D. Perkins Career and Technical Education program, which would strengthen alignment among secondary and postsecondary CTE programs and businesses.

As previewed in President Obama’s State of the Union address, the Administration is proposing $300 million for a new High School Redesign program, which would fund competitive grants to districts partnering with postsecondary institutions, businesses and non-profits to help ensure that all students graduate from high school with college credit and career-related experience.

Make college more affordable and improve quality
The demand for higher education continues to increase at a time when college costs have continued to escalate. President Obama delivered significant increases in the postsecondary financial aid available to students and families over the first term, but student aid cannot keep pace with rising college costs indefinitely. To address these long-term challenges, the President’s request proposes comprehensive reforms to increase affordability and quality in higher education, including $1 billion for a new Race to the Top-College Affordability and Completion competition that would drive change in state higher education policies and practices; $260 million for a First in the World fund that would make competitive awards to encourage innovation in higher education; expanding and reforming campus-based aid programs; linking student loan interest rates to market rates – before they are scheduled to rise on July 1; and expanding the popular Pay As You Earn repayment option to ensure that loan repayments for all student borrowers do not exceed 10 percent of their discretionary income.

In addition, the 2014 budget would fund Pell Grants for more than 9 million students – an increase of more than 50 percent since 2008 – and support an increase in the maximum Pell Grant from $5,645 in the 2013-14 year to $5,785 in 2014-15.

Provide ladders of opportunity
Too many communities suffer from concentrated poverty, and schools often take on the multiple challenges that face their most vulnerable students. Through "Promise Zones," federal agencies will partner with the leaders of high-poverty communities to break down barriers and coordinate the resources and expertise they need to create jobs, leverage private investments, increase economic activity, reduce violence, and improve educational opportunities. The President’s budget would support Promise Zones through investments in his signature Neighborhood Revitalization programs, including $300 million for the U.S. Department of Education’s Promise Neighborhoods.

Together, these investments can continue to close achievement gaps, provide life-transforming opportunities for children, expand educational opportunity, strengthen the middle class and prepare all Americans for the challenges of the 21st century.