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Oh Cover:
(Top Row, LR) 8ludehls sludyhg Amerca's sca cha
ehges lhrough a currcuum deveoped by Fouhdaloh
grahlee Coumba Teachers Coege; Farlcpahls al Fouh
daloh grahlee Mobze.org's Democracy 2.0 Naloha
Youlh 8umml h Chcago, lL; ormer Charmah o lhe
Federa Reserve Fau Vocker h a vdeo prepared or lhe
Fouhdaloh's 2010 Fsca 8umml.
(8ecohd Row rom Top, LR) Former OMB Dreclor Ace
Rvh al lhe Fouhdaloh's 2010 Fsca 8umml; Former
Fresdehl B Chloh al lhe Fouhdaloh's 2011 Fsca
8umml; Farlcpahl al Fouhdaloh grahlee Amerca
8peaks' Our Budgel, Our Ecohomy evehl h Fhade
pha; Naloha Ecohomc Couhc Dreclor Cehe 8perhg
al lhe Fouhdaloh's 2011 Fsca 8umml.
(Thrd Row rom Top, LR) Farlcpahls al Fouhdaloh
grahlee Amerca8peaks' Our Budgel, Our Ecohomy
evehl h Forlahd, Oregoh; lmage rom ah educaloha
leevsoh ad ared by lhe Fouhdaloh durhg a New
Hampshre Fresdehla Debale; FB8 sehor correspoh
dehl Judy Woodru wlh U.8. 8ehalors 8axby Chambss,
Mark Warher, Mke Crapo, ahd Dck Durbh al lhe Fouh
daloh's 2011 Fsca 8umml.
(Bollom Row, LR) CB8's Lesey 8lah, ormer Whle
House Che o 8la Erskhe Bowes, ahd ormer U.8.
8ehalor Aah 8mpsoh al lhe Fouhdaloh's 2010 Fsca
8umml; House Budgel Commllee Charmah Fau Ryah
al lhe Fouhdaloh's 2011 Fsca 8umml; Farlcpahl al
Fouhdaloh grahlee Amerca8peaks' Our Budgel, Our
Ecohomy evehl h Fhadepha.
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81.46./5",(/2$/212"(/"
9(4.3:";(41%.(/2
CONVENlNC FOLlCYMAKER8 AND EXPERT8
TO AN8WER THE Fl8CAL CHALLENCE 9
BLUEFRlNT8 FOR Fl8CAL ACTlON ACRO88
THE lDEOLOClCAL 8FECTRUM 14
ADDRE88lNC THE HEALTH CARE CHALLENCE 16
ALlCNlNC NATlONAL 8ECURlTY
WlTH ECONOMlC 8ECURlTY 18
BUlLDlNC MOMENTUM FOR FOLlCY ACTlON
lN WA8HlNCTON 20
<613-%./5"-/6"!3%.=-%./5"
%+$"!)$&.3-/"91>4.3
FRE8ENTlNC THE FACT8 AND
ANALYZlNC THE OFTlON8 22
BUlLDlNC FUBLlC AWARENE88 ABOUT
OUR Fl8CAL FUTURE 24
REACHlNC AUDlENCE8 ACRO88 THE COUNTRY 26
BRlNClNC THE FEOFLE'8 VOlCE TO THE
BUDCET DEBATE 28
TEACHlNC YOUNC AMERlCAN8 ABOUT
THElR Fl8CAL FUTURE 30
ENCAClNC THE NEXT CENERATlON 32
!>(1%"%+$"'(1/6-%.(/
Ll8TlNC OF CRANTEE8 35
FlNANClAL OVERVlEW 39
FOUNDATlON LEADER8HlF
AND ADVl8ORY BOARD8 40
FETER C. FETER8ON FOUNDATlON
FROCRE88 REFORT 2008 2011
?
A LETTER FROM THE CHAlRMAN
l'm oleh asked why l decded lo slarl a ouhdaloh
ocused oh addresshg Amerca's ohglerm sca cha
ehges, whch l cohsder a prmary lhreal lo Amerca's
ecohomc ulure. The smpe ahswer s lhal, h my
mhd, l had ho choce.
A ew years ago, l aced lhe quesloh o whal lo do
wlh lhe buk o my persoha hahca resources. l
khew lhal l had more lhah ehough. l aso el lhal lhe
Amercah ecohomc syslem, whch had provded so
much opporluhly lo me, was h per. 8kyrockelhg
eves o pro|ecled ohglerm debl hol ohy rased lhe
rsk o a hahca crss, bul were aso lhrealehhg lo
sle ecohomc growlh, choke o crlcay heeded
hveslmehls h educaloh, sks lrahhg, hraslruc
lure, ahd hhovaloh, pass oh a huge burdeh o debl
lo peope h my hhe grahdchdreh's geheraloh, ahd
bahkrupl lhe soca saely hel programs lhal so mahy
rey oh. Furlhermore, lhe hequaly o hcome h
lhe U.8. had reached lhe hghesl eves shce 1928,
lhrealehhg lhe dea o arhess ahd opporluhly or
a Amercahs.
The Amercah Dream s ah dea hsled h me rom
a youhg age. My parehls were Creek mmgrahls who
came lo lhs couhlry wlh ohy a lhrdgrade educaloh,
barey ahy Ehgsh, ahd |usl pehhes h lher pockels.
Aler sellhg h lhe sma lowh o Kearhey, Nebraska,
lhey opehed lhe hevlabe Creek dher. ll was cerlahy
hol dslhgushed or ls cushe, bul ralher or lhe acl
lhal l was opeh 24 hours a day, 7 days a week or
25 years. My parehls worked so hard a lhose years
because lhey wahled my brolher ahd me lo gel lhe
besl educaloh ahd have lhe opporluhly lo pursue lhe
Amercah Dream.
lh every respecl, l have beeh lhe uckesl o Amercah
Dreamers. From bushess lo goverhmehl lo hahce,
l have had opporluhles lhal were ohy avaabe
h Amerca. Ahd l wahl ulure geheralohs lo have
lhe opporluhly lo reaze lher owh versoh o lhe
Amercah Dream.
As l saw our haloha eaders go year aler year blhey
ghorhg our oomhg ohglerm decls ahd debl, l
khew l had lo do somelhhg. l coudh'l maghe wakhg
A elme o opporluhly hspred our ouhder's
mssoh lo preserve lhe Amercah Dream.
FETER C. FETER8ON
" @
up h 10 or 20 years h a weakehed Amerca lhal had
osl lhe Amercah Dream, ahd hol havhg lred lo do
somelhhg aboul l. The words o my ormer proessor
al lhe Uhversly o Chcago, Ceorge 8lger, rahg h my
ears: l ohe has ho alerhalve, ohe has ho probem.
8o h realy, l had ho alerhalve bul lo lry.
l slarled lhe Feler C. Felersoh Fouhdaloh lo ehgage
wlh peope a across Amerca pocymakers, budgel
experls, bushess eaders, |ourhasls, academcs, ahd
clzehs o every geheraloh . rahky, ahyohe who w
sleh. We have had lhe hep o some oulslahdhg hd
vduas, hcudhg our rsl CEO, ormer Complroer
Cehera o lhe Uhled 8lales Davd Waker, who has
demohslraled lreess dedcaloh lo sca ssues.
By pubczhg lhe dsma lrulhs aboul Amerca's
ohglerm sca chaehges ahd, eveh more mporlahl
y, oerhg a hopeu, poslve vsoh o ah Amerca lhal
s scay souhd, ecohomcay secure, ahd brmmhg
wlh opporluhly, we hope lo slmuale progress oh
soulohs ahd ehsure lhal our haloh has lhe resources
lo bud ah hveslmehl ahd hhovaloh ecohomy lhal s
gobay compellve or decades lo come.
The Amerca we ehvsoh has a slrohg mdde cass,
oerhg |obs ahd wdey shared prosperly ahd gvhg
a peope, ho maller where lhey slarl h e, lhe oppor
luhly lo cmb lhe adder o ecohomc success. Ahd
as we make lhe lough choces requred lo reduce our
ohglerm debl lo suslahabe eves, we, lhe rchesl
o halohs, musl aso preserve lhe saely hel or lhe
vuherabe.
The rsl lhree years o our Fouhdaloh's operalohs
have broughl me greal salsacloh. Our haloh's sca
probems are serous, bul l am oplmslc lhal lhey
cah be soved. Desple requehl polca wrahghg ahd
sow progress, a cohsehsus has emerged across lhe
haloh ahd across lhe polca speclrum lhal we cah
ho ohger ghore sca realy. The Amercah peope
have growh deepy ruslraled wlh a Washhgloh lhal
oleh seems loo ocused oh deoogy ahd uhwhg lo
reach across lhe ase. They beeve we musl chahge
course ahd lhey are eager or pocymakers lo ehacl
soulohs. Whe lhe mpacl o our uhdamehla budgel
chaehges w be el over lhe ohg lerm, l s mpera
lve lhal we begh lo address lhese chaehges sooher
ralher lhah aler. The hexl ew years w be decsve h
delermhhg lhe ohglerm sca ulure ahd lhereore
lhe ecohomc ulure o our haloh.
Ths reporl provdes ah overvew o our hlalves ahd
grahlmakhg shce our auhch h 2008. ll s lhe rsl
chapler h our slory ohe lhal l beeve w have a
successu cohcusoh. We ook orward lo reguary
updalhg you oh our progress ahd lo hghghlhg how
our haloh s progresshg h cohrohlhg ls ohglerm
sca chaehges ahd preservhg lhe Amercah Dream.
FETE FETER8ON
Charmah ahd CEO
A
AMERlCA'8 ECONOMlC AND Fl8CAL CHALLENCE
A healhy, growhg ecohomy s crlca lo mprovhg
our qualy o e ahd mahlahhg lhe Amercah Dream
or currehl ahd ulure geheralohs. Today's presshg
ecohomc chaehges musl be addressed, yel eveh ar
ger ohglerm ecohomc ahd sca chaehges e ahead.
lh order or our ecohomy lo lhrve h lhe ulure, we
heed lo make wse decsohs loday. lh ahy hahca
or ecohomc aclvly, a prosperous ulure requres
prudehl hveslmehls lhal geherale produclve relurhs.
The success o our ecohomy resls h lhe hahds o
Amercah workers, ehlrepreheurs, ahd bushesses, a
o whom heed a healhy cmale h whch lo hvesl,
hhovale, ahd bud.
The edera goverhmehl has ah mporlahl roe lo pay
h mahlahhg such ah ehvrohmehl.
However, by ahy measure cohservalve or bera,
Repubcah or Democral, suppysder or Keyhesah
lhe edera goverhmehl's currehl ohglerm palh s
smpy uhsuslahabe.
Mahy have caed lhs lhe mosl predclabe ecohomc
crss h hslory. Thal's because lhe sca ulure
s couded by a perecl slorm o very predclabe
demographc aclors lhal pose a serous chaehge
lo lhe ohglerm budgel oulook: Baby Boomers
are beghhhg lo relre, lhe edery are vhg much
ohger h relremehl, ahd healh care cosls (whch
represehl a sghcahl goverhmehl obgaloh) are
oh a dramalc rse.
lh a 2010 Fouhdaloh survey o ormer ecohomc po
cymakers rom bolh parles, a resouhdhg 100 percehl
o Repubcah ahd Democralc respohdehls agreed
lhal Amerca's ohglerm sca palh s uhsuslahabe,
ahd 84 percehl agreed lhal a aure lo address lhe
couhlry's ohglerm slruclura decls woud ead lo
aholher ecohomc crss h lhe hexl leh years.
Why s lhe cohcerh o experls so uhahmous! 8mpy
pul, lhe edera goverhmehl s oh a palh lo borrow
much more mohey lhah l cah aord.
There are mahy ways lo measure a couhlry's sca
healh, bul lhe besl overa gauge s edera debl
realve lo lhe sze o our ecohomy (lhe ralo o edera
debllogross domeslc producl, or deblloCDF).
Mahy ecohomsls suggesl mahlahhg a deblloCDF
To ehsure a vbrahl ecohomc ulure, lhe Uhled 8lales musl
lacke ls ohglerm sca chaehges. We khow whal heeds
lo be addressed, ahd we khow lhere are mahy polehla
soulohs. Now we heed lo bud supporl or bparlsah acloh.
BY MlCHAEL A. FETER8ON, FRE8lDENT AND COO
MlCHAEL A. FETER8ON
" B
ralo o ho more lhah 60 percehl, ahd lhey warh o
dahger lhe ralo slays above 90 percehl.
Rghl how our pubc debl s 70 percehl o CDF. Thal's
aready very hgh, bul lhe rea lhreal s h rohl o us:
l currehl poces cohlhue, lhe U.8. deblloCDF ralo
s oh a lra|eclory lo grow lo a slaggerhg 180 percehl
o CDF wlhh 25 years.
Lke ahy borrowhg, growhg edera debl brhgs more
hleresl cosls. Today we are aready orced lo spehd
S220 boh each year oh hleresl. Bul oh our currehl
palh, hleresl paymehls w reach a slaggerhg S1
lroh per year h aboul 10 years ahd by 2030 woud
become lhe argesl he lem h lhe edera budgel.
ll's hol dcul lo uhderslahd why drowhhg h such
arge hleresl paymehls coud hurl ah ecohomy, eveh
ohe as successu as ours. These paymehls make l
vrluay mpossbe or us lo hvesl as much h our
ulure, ahd w hcreashgy crowd oul educaloh,
sks lrahhg, R&D, hraslruclure, ahd olher pubc
ahd prvale hveslmehls lhal make our ecohomy
slrohg ahd our haloh compellve. Ah ecohomy cahhol
remah healhy ahd produce good |obs ahd wages
we are spehdhg much more oh hleresl lhah we are
oh hveslhg h our ulure.
Ahd lhe soca saely hel lse coud be |eopardzed
programs ke 8oca 8ecurly ahd Medcare are bouhd
lo be cul wlhoul compassoh h a sca crss.
Cveh lhe very rea mpacl o our haloha debl oh
our ecohomy ahd our peope, mprovhg Amerca's
ohglerm budgel oulook musl be ah urgehl prorly
or our haloh.
8CU|CL8: Data frcm the Ccngressicnal Budget Cffice |cng-Term Budget Cutlcck: 1une 2011 and 1une 2009; and the Cffice cf Management and Budget,
The Budget cf the United 8tates Ccvernment: |iscal Year 2012, |ebruary 2011. Ccmpiled by FCF|. NCTL: |eflects debt held by the public tc all federal
debt held by individuals, ccrpcraticns, state cr lccal gcvernments, and fcreign entities.
The debl eves pro|ecled h lhe hear ulure are uhprecedehled.
PROJECTED
P
E
R
C
E
N
T
A
G
E

O
F

G
D
P
200
175
150
125
100
75
50
25
0
1995 2005 2015 2025 2035
177%
ACTUAL
C
THE 8OLUTlON8
The good hews s lhal our sca chaehges cah be
overcome. A varely o hlalves, hcudhg lhe 8mp
sohBowes commssoh, olher lask orces, ahd our
ouhdaloh's pocy pro|ecls, have a showh lhal lhs
probem cah be soved, ahd lhal we do l sooh, l cah
be dohe wlh arhess ahd compassoh.
A credbe sca pah musl pass a smpe lesl: does
l slabze deblloCDF al ah aordabe eve over lhe
ohg lerm! Varous sca reorms cah cam lo reduce
ahhua decls by cerlah amouhls, bul h order lo
pul lhe U.8. oh a suslahabe palh we musl slop lhe
growlh h debl.
To acheve lhs ob|eclve, a successu sca pah
musl be comprehehsve ahd address lhe uhdamehla
drvers o our ohglerm debl.
Ohe s healh care. Brhghg more vaue lo healh care
spehdhg s absouley essehla, gveh lhal healh
care cosls represehl a ma|or share o hcreashg
edera expehdlures. Today, we spehd lwce as much
per capla as olher advahced halohs, yel our healh
oulcomes are oleh ho beller. Makhg lhe overa healh
care syslem more ecehl, whe makhg chahges lo
Medcare ahd Medcad, s key lo our ecohomc ahd
sca ulure. Craduay chahghg olher ehllemehl
programs ke 8oca 8ecurly lo make lhem secure
ahd sovehl or lhe ohg lerm s aso ah mporlahl
compohehl o sca reorm.
Deehse spehdhg heeds scrulhy, loo. Today, we
spehd more oh deehse lhah lhe hexl 17 couhlres
combhed. We heed lo ehsure lhal we uy address
lhe lhreals o lhe 21sl cehlury, whe ackhowedghg
lhal our haloha securly s hghy depehdehl oh our
ecohomc securly ahd sca healh.
8curces: Data frcm the Cffice cf Management and Budget, Budget cf the United 8tates Ccvernment: |Y 2012, |eb. 2011, Cagncn c Hinterschweiger,
The Clcbal Cutlcck fcr Ccvernment Debt cver the Next 25 Years: |mplicaticns fcr the Lccncmy and Fublic Fclicy, F||L, 1une 2011. Ccmpiled by FCF|.
By 2035, pro|ecled hleresl cosls oh lhe debl w be more lhah our lmes whal lhe edera goverhmehl
has hslorcay spehl oh educaloh, research ahd deveopmehl, ahd hraslruclure combhed.
P
E
R
C
E
N
T
A
G
E

O
F

G
D
P
13.2%
0
2
4
6
8
10
12
14
1960-2010 AVERAGE YEARLY R&D SPENDING INTEREST COST
2035
0.7%
Education
0.9%
Non-defense
Infrastructure
1.2%
Research and
Development
1.5%
2011
4.5%
2020
" D
Ahd ahy polcay reaslc ahd aslhg bparlsah
sca souloh w requre lhal revehues be oh lhe
labe as lhe Bowes8mpsoh commssoh ahd olhers
have recommehded, parhg back lax expehdlures cah
hol ohy cohlrbule lo decl reducloh, bul cah make
l possbe lo ower lax rales ahd creale a smper lax
code lhal s more cohducve lo growlh.
8ome say lhal how s hol lhe lme lo dea wlh our
ohglerm sca chaehges, due lo lhe currehl rage
recovery. Bul lhs s hol ah elher/or proposloh.
Fullhg a ohglerm sca pah h pace lhal goes hlo
eecl ohce lhe ecohomy recovers s a sehsbe way lo
dea wlh recovery ahd suslahably al lhe same lme.
Ahd lakhg lhs acloh how or lhe ohg lerm cah aso
slrehglheh loday's ecohomc recovery by booslhg
cohdehce al home ahd abroad lhal lhe U.8. s hay
gellhg ls sca house h order. Cohdehce woud be
a vauabe orm o slmuus lhal our ecohomy heeds,
bul hash'l yel gahed.
By commllhg ourseves lo slabzhg lhe debl, we
cah ay a ouhdaloh or ohglerm growlh, grealer
ecohomc hdepehdehce, ahd equlabe soulohs lo
lhe ecohomc chaehges achg geheralohs o Amer
cahs. We cah shape a poslve vsoh o our haloh's
ulure ahd lake lhe sleps hecessary lo reaze l.
Ths haugura reporl chrohces our eorls lo educale
lhe pubc, bud cohsehsus h Washhgloh, ahd
mobze Amercahs lo lake acloh ahd hep ead lhe
haloh loward a suslahabe sca ulure.
8curce: Data frcm the Ccngressicnal Budget Cffice, The |cng-Term Budget Cutlcck: 1une 2010, alternative. Ccmpiled by FCF|.
NCTL: "|ederal Health Care Frcgrams include Medicare, Medicaid, CH|F, and exchange subsidies.
OUR Fl8CAL CHALLENCE8 AND OUR Ml88lON
The pro|ecled ma|or drver o edera spehdhg over lhe hexl severa decades s lhe dramalc rse
o spehdhg oh healh care.
A
S

A

P
E
R
C
E
N
T
A
G
E

O
F

G
D
P
10.0
8.0
6.0
4.0
2.0
0.0
2010 2015 2020 2025 2030 2035 2040 2045 2050
12.0
14.0
MAJOR
HEALTH
SOCIAL
SECURITY
DEFENSE
DISCRETIONARY
NON-DEFENSE
DISCRETIONARY
OTHER
MANDATORY
BUlLDlNC CON8EN8U8
ON FOLlCY 8OLUTlON8:
REACHlNC ACREEMENT
ON Fl8CAL 8OLUTlON8 WlLL
REUlRE TOUCH CHOlCE8
AND BOLD BlFARTl8AN
COMMlTMENT8. THROUCH
EDUCATlON, ANALY8l8, AND
ACTlON lN WA8HlNCTON AND
BEYOND, THE FOUNDATlON
l8 WORKlNC TO BUlLD A
BlFARTl8AN CON8EN8U8
AROUND LONCTERM Fl8CAL
8U8TAlNABlLlTY.
" E BUlLDlNC CON8EN8U8 ON FOLlCY 8OLUTlON8
CONVENlNC FOLlCYMAKER8 AND EXFERT8
TO ADDRE88 THE Fl8CAL CHALLENCE
The 2010 Fsca 8umml was hed a day aler lhe rsl
meelhg o lhe Naloha Commssoh oh Fsca Respoh
sbly ahd Reorm, ahd l demohslraled lhal polca
eaders ahd ecohomsls oh bolh sdes o lhe polca
ase recoghze lhe urgehcy o our sca chaehges.
Farlcpahls hcuded ormer Fresdehl B Chloh,
ormer U.8. 8ehalor Judd Cregg, ormer Dreclor o
lhe Oce o Mahagemehl ahd Budgel Feler Orszag,
ormer 8ecrelary o lhe Treasury Roberl Rubh, ormer
Charmeh o lhe Federa Reserve Fau Vocker ahd
Aah Creehspah, ahd Naloha Commssoh oh Fsca
Respohsbly ahd Reorm cochars Erskhe Bowes
ahd ormer U.8. 8ehalor Aah 8mpsoh. There was
gehera agreemehl lhal ohglerm slruclura mba
ahces are a serous ecohomc lhreal achg lhe haloh
ahd lhal l s mperalve lo address lhese mbaahces
sooher ralher lhah aler, whe our oplohs are more
ecohomcay ahd polcay paalabe. Cohlrbu
lors dehled rshg healh care cosls as lhe mosl
sghcahl compohehl o ohglerm slruclura decls
ahd urged reorms lo lhe currehl syslem. They aso
dscussed a o lhe revehue ahd spehdhg oplohs
oh lhe labe, hcudhg reorms lo ehllemehls, lax
expehdlures, ahd deehse.
As parl o lhe 8umml, lhe Fouhdaloh reeased lhe
resuls o a grouhdbreakhg survey o sehor ecohomc
The Felersoh Fouhdaloh's ahhua Fsca 8ummls cohvehe
lhe haloh's lop eaders ahd experls lo hd commoh
grouhd oh soulohs lo Amerca's ohglerm sca ahd
ecohomc chaehges. The cohversaloh begah h 2010,
wheh we ocused oh budhg awarehess aboul lhe urgehcy
o our sca chaehges, ahd l cohlhued h 2011, wheh our
grahlees broughl specc soulohs lo lhe labe.
(TOFBOTTOM) FORMER WHlTE HOU8E CHlEF OF 8TAFF
ER8KlNE BOWLE8 AND FORMER U.8. 8ENATOR ALAN
8lMF8ON Dl8CU88 THE WORK OF THE NATlONAL
COMMl88lON ON Fl8CAL RE8FON8lBlLlTY AND REFORM.
FG
ocas rom lhe prevous eghl presdehla admh
slralohs ahd Cohgressoha eaders rom lhe pasl
30 years. Ah aslouhdhg 84 percehl o Repubcah
ahd Democralc respohdehls agreed lhal a aure
lo address lhe couhlry's ohglerm slruclura decl
chaehges woud ead lo aholher ecohomc crss h
lhe hexl leh years. 8evehlyour percehl o respoh
dehls aso broady agreed lhal soulohs musl
hcude bolh spehdhg culs ahd lax hcreases, ahd
89 percehl beeved lhal a pah lo address ohglerm
decls shoud be agreed lo wlhh ohe lo lwo years.
Oh May 25, 2011, lhe Felersoh Fouhdaloh hosled ls
2011 Fsca 8umml: 8oulohs or Amerca's Fulure, h
Washhgloh, D.C. The orum ealured eadhg lhhkers
ahd pocymakers, hcudhg Obama admhslraloh
ocas, members o Cohgress, budgel experls, |ourha
sls, ahd bushess eaders, who oered a rahge o vews
aboul sovhg lhe haloh's ohglerm sca chaehges.
The 8umml was lhe cumhaloh o lhe Fouhdaloh's
8oulohs lhlalve, a grahl program supporlhg sx
orgahzalohs across lhe deoogca ahd geheraloha
speclrum lo deveop pahs wlh specc soulohs lo lhe
haloh's pro|ecled ohglerm debl ahd decls. lh addloh
lo lhe pah presehlalohs, program hghghls hcuded:
A cohversaloh wlh ormer Fresdehl B Chloh
oh lhe poslve ecohomc eecls o debl reducloh
ahd lhe heed or bolh parles ahd lher supporlers
lo serousy cohsder deas advahced by lhe olher;
lhlervews wlh House Budgel Commllee
Charmah Fau Ryah ahd Naloha Ecohomc
Couhc Dreclor Cehe 8perhg oh lher vsohs o
reorm, parlcuary h regard lo Medcare;
Ah hlervew wlh lhdaha Coverhor Mlch Dahes
oh essohs he earhed h budhg pubc supporl lo
address decls oh a slale eve;
A pahe dscussoh wlh U.8. 8ehalors 8axby
Chambss, Mke Crapo, Dck Durbh, ahd Mark
Warher aboul lher eorls lo cral a bparlsah
pah lo address our ohglerm chaehges lhrough
lhe Cahg o 8x ahd
A dscussoh o Amercahs' allludes aboul decl
reducloh ahd appelle or chahge wlh ormer U.8.
8ehalor Aah 8mpsoh, New Ycrk Times coumhsl
Davd Brooks, Hoheywe CEO Davd Cole, Demos
Vce Fresdehl o Focy ahd Frograms Tamara
Draul; ahd The Atlantic's bushess ahd ecohomcs
edlor Megah McArde.
Bolh o lhe ahhua Fsca 8ummls were leevsed va
C8FAN lo a haloha audehce o polcay ehgaged
Amercahs. They reecl lhe Fouhdaloh's comml
mehl lo ehgaghg a broad rahge o slakehoders h
a praclca daogue oh lhe haloh's sca chaehges
ahd drvhg acloh lo resove lhem.
(LEFT) FORMER OMB DlRECTOR FETER OR8ZAC RE8FOND8 TO UE8TlON8 ABOUT HEALTH CARE'8 lMFACT ON
THE NATlON'8 Fl8CAL 8lTUATlON. (RlCHT) FORMER FEDERAL RE8ERVE CHAlRMAN ALAN CREEN8FAN LAY8 OUT
THE EFFECT8 OF lNCREA8lNC DEBT.
" FF BUlLDlNC CON8EN8U8 ON FOLlCY 8OLUTlON8
(TOF LEFT) FORMER CHAlRMAN OF THE FEDERAL RE8ERVE FAUL VOLCKER Dl8CU88E8 THE lMFORTANCE
OF FlNDlNC LONCTERM 8OLUTlON8 THAT ADDRE88 BOTH 8FENDlNC AND REVENUE. (TOF RlCHT) FORMER
8ECRETARY OF THE TREA8URY ROBERT RUBlN DE8CRlBE8 THE EFFECT8 OF OUR UN8U8TAlNABLE DEFlClT8 AND
DEBT ON FUBLlC AND FRlVATE lNVE8TMENT. (BOTTOM) FORMER OMB DlRECTOR ALlCE RlVLlN AND ECONOMlC
FOLlCY lN8TlTUTE FRE8lDENT LAWRENCE Ml8HEL Dl8CU88 FOTENTlAL 8OLUTlON8 TO THE NATlON'8
ECONOMlC AND Fl8CAL CHALLENCE8.
F?
(TOF LEFT) NLw YC|K T|ML8 COLUMNl8T DAVlD BROOK8 Dl8CU88E8 THE CULTURAL AND FOLlTlCAL
CHALLENCE8 OF FlNDlNC A 8OLUTlON TO THE DEBT. (TOF RlCHT) lNDlANA COVERNOR MlTCH DANlEL8
Dl8CU88E8 Hl8 EXFERlENCE WlTH Fl8CAL REFORM ON A 8TATE LEVEL. (BOTTOM) MODERATOR JUDY WOODRUFF
Dl8CU88E8 THE DEFlClT REDUCTlON EFFORT8 OF THE CANC OF 8lX WlTH U.8. 8ENATOR8 8AXBY CHAMBLl88,
MARK WARNER, MlKE CRAFO, AND DlCK DURBlN.
" F@ BUlLDlNC CON8EN8U8 ON FOLlCY 8OLUTlON8
(TOF) FORMER FRE8lDENT BlLL CLlNTON Dl8CU88E8 THE lMFORTANCE OF Fl8CAL 8U8TAlNABlLlTY TO
AMERlCAN COMFETlTlVENE88 lN AN lNTERVlEW WlTH FB8' CWEN lFlLL. (BOTTOM LEFT) HOU8E BUDCET
COMMlTTEE CHAlRMAN FAUL RYAN LAY8 OUT Hl8 DEFlClT REDUCTlON FLAN. (BOTTOM RlCHT) NATlONAL
ECONOMlC COUNClL DlRECTOR CENE 8FERLlNC Dl8CU88E8 THE OBAMA ADMlNl8TRATlON'8 FER8FECTlVE
ON Fl8CAL REFORM.
FA
BLUEFRlNT8 FOR Fl8CAL ACTlON FROM ACRO88
THE lDEOLOClCAL 8FECTRUM
lh Jahuary 2011, lhe Felersoh Fouhdaloh auhched lhe
8oulohs lhlalve, a grahl program lhal cohvehed sx
orgahzalohs rom across lhe deoogca ahd gehera
loha speclrum lo deveop soulohs lo lhe haloh's
pro|ecled ohglerm debl ahd decls.
The Fouhdaloh awarded grahls lo sx eadhg pubc
pocy orgahzalohs lhe Amercah Ehlerprse
lhsllule, lhe Bparlsah Focy Cehler, lhe Cehler or
Amercah Frogress, lhe Ecohomc Focy lhsllule,
The Herlage Fouhdaloh, ahd lhe Roosevel lhsllule
Campus Nelwork ahd asked lhem lo deveop ahd
presehl lher vsoh lo address our sca chaehges.
The groups were gveh hdepehdehce ahd dscreloh lo
dehe lhe sca goas ahd cral comprehehsve pahs
lo acheve lhem. We lheh asked lhe hohparlsah Tax
Focy Cehler ahd olher experls lo score ahd compare
whal lhe varous pahs woud acheve h 2021 ahd 2035.
Aler cohsderhg lhe mahy lradeos lhal go hlo
produchg a budgel, lhe orgahzalohs produced pahs
reeclhg lher hdvdua phosophes. lmporlahly,
they all significantly reduced debt-tc-CDF pro|eclohs
wheh measured agahsl ah exlehded versoh o lhe
Cohgressoha Budgel Oce basehe. By 2035, lhe
pahs woud reduce debl eves lo belweeh 30 ahd 80
percehl o CDF.
Eveh lhough lhe grahlees demohslraled sghcahl
derehces over lhe sze ahd roe o goverhmehl, lher
pahs showed a remarkabe cohsehsus oh severa
key prorles. Mosl mporlahly, a o lhe grahlees
ackhowedged lhal Amerca's currehl sca palh s
uhsuslahabe ahd recommehded poces lhal woud
reduce lhe pro|ecled edera debl. Addlohay, lhey
agreed lhal we musl preserve a soca saely hel
or lhose who heed l, ahd lhal we cahhol cohlhue
lo subsdze lhe weo lhe way we currehly do.
Lasly, lhey cohcurred lhal socaed lax expehdlures
lax deduclohs, excusohs, ahd credls lhal acl as
dsgused spehdhg ahd cosl lhe edera goverhmehl
S1.3 lroh each year are erle grouhd or reorm
lhal grealy smpes lhe syslem, ahd owers lax
rales or corporalohs ahd hdvduas.
F
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8OLUTlON8 lNlTlATlVE FROJECTED DEBT LEVEL8
CBO Current
Policy Scenario
EPI
Roosevelt
AEI
CAP
Heritage
BPC
175
150
125
100
75
50
25
2010 2015 2020 2025 2035 2030
Washhgloh ahd lhe pubc geheray accepl lhe heed lo
reduce pro|ecled ohglerm debl ahd decls lhe hexl slep
s lo deveop credbe pahs or reachhg lhal goa. The
Felersoh Fouhdaloh's 8oulohs lhlalve provded grahls lo
sx pubc pocy research orgahzalohs across lhe deoogca
ahd geheraloha speclrum lo presehl lher vsoh o how lo
pul Amerca oh a suslahabe ohglerm sca palh.
" FB BUlLDlNC CON8EN8U8 ON FOLlCY 8OLUTlON8
The 8oulohs lhlalve grahlees presehled lher pahs
logelher al lhe Fouhdaloh's 2011 Fsca 8umml,
expahhg lher respeclve approaches lo resovhg
lhe haloh's debl ahd decl chaehges ahd hgh
ghlhg areas o agreemehl ahd dsagreemehl. Laler
h lhe year, we worked wlh our 8oulohs lhlalve
parlhers lo cohvehe a seres o bparlsah brehgs
or members o Cohgress ahd lher slas, so lhey
coud beller uhderslahd lhe delaed poces wlhh
lhe pahs.
The acl lhal a broad rahge o experls agree oh
lhe sca mperalve uhderscores lhal cohsehsus
s possbe, eveh hdvdua approaches lo sovhg
Amerca's sca chaehges der.
FOLlCY EXFERT8 FROM 8OLUTlON8 lNlTlATlVE CRANTEE ORCANlZATlON8 Dl8CU88 THElR DEFlClT REDUCTlON
FLAN8 WlTH wA|| 8T|LLT 1CU|NA| EDlTOR DAVlD WE88EL. (LR: WE88EL; ALAN VlARD, AMERlCAN ENTERFRl8E
lN8TlTUTE; JOE MlNARlK, BlFARTl8AN FOLlCY CENTER; MlCHAEL ETTLlNCER, CENTER FOR AMERlCAN
FROCRE88; JOHN lRON8, ECONOMlC FOLlCY lN8TlTUTE; 8TUART BUTLER, THE HERlTACE FOUNDATlON;
ZACHARY KOLODlN, THE ROO8EVELT lN8TlTUTE CAMFU8 NETWORK)
FC
ADDRE88lNC THE HEALTH CARE CHALLENCE
lhdvduas ahd experls rom across lhe polca speclrum
agree lhal Amerca's rapdy rshg healh care cosls are
uhsuslahabe. The Felersoh Fouhdaloh s workhg wlh
orgahzalohs hcudhg lhe lhsllule o Medche ahd lhe Cehler
or Amercah Frogress lo drve healh care soulohs lhal
dever beller vaue by mprovhg qualy ahd owerhg cosls.
Accordhg lo lhe Cohgressoha Budgel Oce, lola
prvale ahd pubc healh care spehdhg h lhe Uhled
8lales s pro|ecled lo soar more lhah 50 percehl
by 2035, cohsumhg 27 percehl o CDF. The U.8.
currehly spehds lwce as much per capla as mosl
olher advahced halohs oh healh care. Bul desple
lhese massve resources, U.8. healh oulcomes
are geheray ho beller ahd somelmes worse lhah
oulcomes h olher advahced couhlres. For exampe,
lhe U.8. s 31sl h hahl morlaly ahd 27lh h e
expeclahcy. Nol ohy are we ahg lo acheve good
resuls, bul our huge eves o spehdhg lhrealeh lhe
sca suslahably o lhe haloh.
lh 2009, lhe Felersoh Fouhdaloh |ohed wlh lhe
lhsllule o Medche (lOM) lo brhg logelher medca
proessohas, hospla admhslralors, ecohomsls,
cohsumer represehlalves, ahd hsurers lo dehly
lhe eemehls o lhe healh care syslem lhal provde
lhe mosl vaue, reduce hecehcy, ahd dever proveh
care. A resulhg reporl, The Healthcare |mperative:
|cwering Ccsts and |mprcving Cutccmes, presehls
oplohs or reduchg U.8. healh care expehses by
10 percehl h 10 years, whe mprovhg lhe qualy
o care. 8uggesled slraleges hcude makhg lhe
healh care syslem more palehlcehlered, reormhg
paymehl syslems, ahd hcreashg lrahsparehcy ahd
accouhlably. The reporl was shared wlh eadhg
experls, pracllohers, ahd slakehoders lhroughoul
lhe healh care seclor.
The Fouhdaloh has worked exlehsvey wlh a humber
o olher orgahzalohs lo hep mprove lhe Amercah
healh care syslem. lh November 2008, we coabo
raled wlh Emory Uhversly's lhsllule or Advahced
Focy 8oulohs lo eslabsh lhe Cehler or Ehllemehl
Reorm, charged wlh oulhhg lhe aclors respohsbe
or rshg ehllemehl cosls. lh Juy 2009 ahd May
2010, lhe Fouhdaloh ssued grahls lo lhe lhsllule
or Healhcare lmprovemehl lo spohsor symposa oh
healh care cosls ahd devery.
A 2010 grahl lo lhe Cehler or Amercah Frogress
uhded ah exporaloh o paymehl reorms lo reduce
overa healh care cosls by shlhg away rom lhe
eeorservce paymehl mode lhal ehcourages over
cohsumploh o healh care by palehls ahd overlreal
mehl by doclors ahd hosplas. The Fouhdaloh aso
worked wlh lhe Cehler or Fraclca Boelhcs lo orm
lhe Coaloh lo Trahsorm Advahce Care, a cohsor
lum o eadhg orgahzalohs, ed by ormer AARF
CEO Wam Nove, lhal empowers palehls ahd lher
ames ahd ehgages healh care provders h eorls lo
mprove care or peope who are serousy ahd dyhg.
Healh care w cohlhue lo be a cehlra ocus o lhe
Fouhdaloh's work a hew hlalve s behg pahhed
lo ocus drecly oh lhs key eemehl o our sca
chaehge.
" FD BUlLDlNC CON8EN8U8 ON FOLlCY 8OLUTlON8 BUlLDlNC CON8EN8U8 ON FOLlCY 8OLUTlON8
8CU|CL: Data frcm CLCD. Ccmpiled by FCF|. NCTL: Fer capita health expenditures in 2009, unless ctherwise ncted. Ccmpariscn uses Furchasing
Fcwer Farity, which adjusts exchange rates tc assume identical price cf gccds in different ccuntries. 8CU|CL: Data frcm the Ccngressicnal Budget
Cffice, The |cng-Term Budget Cutlcck: 1une 2010, alternative simulaticn. Ccmpiled by FCF|.
P
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$2,878
$3,487 $3,445
$3,137
$3,722
$4,363
$4,218
$5,144
$3,978
$7,960
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
SOCIAL SECURITY
MEDICARE, MEDICAID AND CHIP
0%
5%
10%
15%
20%
25%
2010 2020 2030 2040 2050 2060 2070 2080
FISCAL YEAR
5% of GDP
5.5% of GDP
19%
of GDP
25%
of GDP
6%
of GDP
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Currehly, Amercahs spehd aboul lwce as much per capla oh healh care as olher OECD couhlres wlh
ho apprecabe derehce h healh oulcomes.
Healh care ehllemehl programs are pro|ecled lo more lhah lrpe as a percehlage o CDF uhder
currehl poces.
FH
ALlCNlNC NATlONAL 8ECURlTY WlTH ECONOMlC 8ECURlTY
Deehse spehdhg accouhls or heary 20 percehl o
lhe U.8. budgel ahd heary ve percehl o lhe haloh's
gross domeslc producl more lhah lwce whal mahy
olher advahced halohs spehd as a percehlage o CDF.
lh acl, lhe Uhled 8lales devoles more resources lo
deehse lhah lhe hexl 17 hgheslspehdhg halohs
ccmbined.
Desple lhe sghcahce o lhe deehse budgel,
deehse spehdhg oleh escapes cose sca ahd
slralegc scrulhy. Focymakers heed lo ask: Are
loday's spehdhg prorles approprale lo lhe securly
lhreals o lhe 21sl cehlury! The Uhled 8lales aces
a ahdscape o hew lhreals ahd meelhg lhem w
requre a comprehehsve revew o haloha securly
lhal addresses loday's chaehges, hol yeslerday's.
Furlhermore, lo marsha lhe resources hecessary
lo adequaley deehd Amerca's haloha hleresls
ahd keep Amercahs sae, our haloh musl be oh
souhd sca ahd ecohomc oolhg. lh loday's goba
ecohomy, our haloha securly depehds drecly oh
our ecohomc securly. Admra Mke Mueh, ormer
Charmah o lhe Johl Ches o 8la, has sad, The
shge grealesl lhreal lo our haloha securly s our
debl. He aso holed, The [Fehlagoh| budgel has
bascay doubed h lhe asl decade, ahd h doubhg,
we have osl lhe ably lo prorlze, lo make hard
decsohs, lo do lough ahayss, lo make lrades.
How cah Amerca havgale lhe dua chaehges o
mlary preparedhess ahd, al lhe same lme, ma|or
sca cohslrahls! Ohe cear ahswer s or our haloh
lo rame a hew haloha securly slralegy. To do so, we
heed a cear uhderslahdhg o lhe rsks achg us h lhe
21sl cehlury. Wlh lhese rsks ahd lhe realed cosls
h mhd, we cah deveop lhe slralegy ahd mssohs
lo couhler ahd reduce lhem. Ahd wlh lhe slralegy
h hahd, we cah begh lo make sehsbe ahd coherehl
reduclohs h lhe deehse budgel.
Wlh lhs h mhd, lhe Felersoh Fouhdaloh has |ohed
wlh lhe Hehry L. 8lmsoh Cehler lo galher dslh
gushed haloha securly experls lo begh workhg oh
a hew deehse slralegy or lhe U.8. Barry Bechmah,
coouhder o 8lmsoh, s servhg as Fro|ecl Dreclor
ahd Lese Ceb, ormer Assslahl 8ecrelary o 8lale or
Folca ahd Mlary Aars ahd Fresdehl Emerlus
o lhe Couhc oh Foregh Realohs, s servhg as a
cohsulahl lo lhe Fouhdaloh. The pro|ecl w produce
a reporl lhal, based oh lhe group's assessmehl o
currehl hleresls ahd lhreals, oers slraleges ahd
orce slruclures lo keep Amerca sae, whe ackhow
edghg lhal our haloha securly requres us lo be oh
a suslahabe sca palh.
A healhy U.8. ecohomy s lhe ouhdaloh oh whch
our haloha securly s bul a suslahabe budgel ahd
a slrohg deehse go hahdhhahd. The Felersoh
Fouhdaloh s cohvehhg lop deehse experls lo agh lhe
U.8. deehse budgel wlh 21sl cehlury haloha securly
lhreals ahd slraleges.
" FE BUlLDlNC CON8EN8U8 ON FOLlCY 8OLUTlON8
The U.8. spehl more oh deehse h 2010 lhah lhe couhlres
wlh lhe hexl 17 hghesl deehse budgels combhed.
8CU|CL: Data frcm 8tcckhclm |nternaticnal Feace |esearch |nstitute, 8|F|| Military Lxpenditure Database. Ccmpiled by FCF|.
NCTL: Dcllar figures are in billicns cf 2010 ccnstant U.8. dcllars.
600
500
0
700
400
300
200
100
TURKEY, UAE
SPAIN & ISRAEL
BRAZIL
SOUTH KOREA
AUSTRALIA
CANADA
ITALY
INDIA
GERMANY
JAPAN
RUSSIA
FRANCE
UK
CHINA
B
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$691 BILLION
SAUDI ARABIA
800
USA
$698 BILLION
?G
BUlLDlNC MOMENTUM FOR FOLlCY ACTlON
Workhg wlh key Washhgloh advocales such as lhe
Commllee or a Respohsbe Federa Budgel, lhe Felersoh
Fouhdaloh keeps lhe pressure oh or suslahabe sca pocy
lhrough coaboralve pro|ecls such as The Momehl o Trulh
Fro|ecl ahd lhe FelersohFew Commssoh oh Budgel Reorm.
8eekhg lo spur acloh oh Amerca's chaehges
oowhg lher work oh lhe Fresdehl's Naloha
Commssoh oh Fsca Respohsbly ahd Reorm,
cochars Erskhe Bowes ahd Aah 8mpsoh ouhded
The Momehl o Trulh Fro|ecl h March 2011. Budhg
oh our hla supporl o lhe Commssoh's work, lhe
Felersoh Fouhdaloh, aohg wlh olher orgahzalohs,
provded uhdhg or The Momehl o Trulh.
Wheh a bparlsah ma|orly, hcudhg severa eecled
ocas, voled or lhe Fsca Commssoh's ha reporl
(ehlled The Mcment cf Truth), l served as a cear hd
caloh lhal bparlsah agreemehl oh a comprehehsve
ohglerm decl reducloh pah s possbe. Makhg l
a realy requres eadershp ahd lough choces rom
lhe Fresdehl ahd members o Cohgress, as we as
cohlhued supporl or reorms amohg lhe volhg pubc.
The Momehl o Trulh Fro|ecl has cohlhued lo bud
momehlum or comprehehsve ohglerm reorm,
wlh key commssohers leslyhg beore Cohgress
ahd ehgaghg lhe Fresdehl, admhslraloh ocas,
ahd Cohgressoha eaders, hcudhg lhe bparlsah
group o sx U.8. sehalors, commohy reerred lo as
lhe Cahg o 8x. lmporlahly, lhe Momehl o Trulh
Fro|ecl s speakhg lo lhe pubc, expahhg lhe acls
aboul our sca chaehges, ahswerhg queslohs, ahd
ayhg oul lhe possbe palhs lo a souloh.
lh addloh, lo ehcourage a deeper examhaloh o
how lhe edera budgel process mpacls Amerca's
sca oulook, lhe Fouhdaloh, h coh|uhcloh wlh lhe
Few Charlabe Trusls, provded uhdhg lo eslabsh
lhe FelersohFew Commssoh. The Commssoh
cohvehed edera budgel ahd sca pocy experls,
hcudhg ormer dreclors o lhe Cohgressoha
Budgel Oce ahd lhe Oce o Mahagemehl ahd
Budgel, ahd ormer charmeh ahd rahkhg members
o lhe House ahd 8ehale Budgel Commllees. They
reeased lwo comprehehsve reporls: lhe rsl, |ed
|nk |ising, oered a sxslep pah or slabzhg our
haloha debl; lhe secohd, Cetting Back in Black,
provded a sel o specc, delaed reorms lo lhe
edera budgel process, hcudhg adoplhg sca
largels, hsllulhg lrggers h case goas are hol mel,
ahd hcreashg lrahsparehcy. Bolh reporls have beeh
huehla h persuadhg pocymakers lo ocus oh lhe
bgger budgel pclure, hcorporalhg deas or sgh
cahl budgel process reorms lo brhg slably ahd
credbly lo lhe haloh's hahces.
Recoghzhg lhal slale budgels are aso achg serous
chaehges, lhe Felersoh Fouhdaloh supporled lhe
auhch o lhe 8lale Budgel Crss Task Force, ed by
ormer New York eulehahl goverhor Rchard Ravlch
ahd ormer Federa Reserve Charmah Fau Vocker.
The goa o lhe Task Force s lo ehsure lhal slale slruc
lura budgel gaps ahd sca chaehges are dscussed
pubcy, covered by lhe haloha meda, ahd cohsdered
h bolh slale ahd edera budgel debales. The Task Force
s cohduclhg research h ve sludy slales Caor
ha, lhos, New York, Texas, ahd Vrgha lo advahce
uhderslahdhg o lhe ssues mpaclhg slale budgels
ahd hep lo mprove budgelhg ahd lrahsparehcy.
EDUCATlNC AND ACTlVATlNC
THE AMERlCAN FUBLlC:
REACHlNC FOLlCYMAKER8
l8 ONLY HALF THE BATTLE.
ELECTED OFFlClAL8 ARE
MOTlVATED BY AMERlCAN8
DEMANDlNC ACTlON. WE
ARE COMMlTTED TO RAl8lNC
FUBLlC AWARENE88 ABOUT
OUR NATlON'8 LONCTERM
Fl8CAL CHALLENCE8 AND
ENERClZlNC AMERlCAN8
TO JOlN THE MOVEMENT
FOR 8OLUTlON8.
!!
FRE8ENTlNC THE FACT8 AND ANALYZlNC THE OFTlON8
!"#$%&'&#$()$&"#$*+,(+-.$/,+'+0#.1 rsl reeased h Juy
2008, s a pahspokeh gude lo lhe edera goverh
mehl's hahces. Ushg gures, charls, ahd graphs,
lhs accessbe reporl expahs how ohglerm slruc
lura decls, escaalhg debl eves, ahd burgeoh
hg hleresl paymehls pose a lhreal lo lhe haloh's
ecohomc ulure. lh addloh lo ayhg oul lhe
probem, lhe pubcaloh dehles areas lhal musl be
addressed as pocymakers deveop soulohs.
The Fouhdaloh aso pubshes hohparlsah ahayses
o deveopmehls realed lo budgel ahd sca pocy.
8ub|ecls o ahayss hcude: Whle House ahd
Cohgressoha budgel proposas; lhe 8oca 8ecurly
ahd Medcare Truslees reporls, whch deve hlo
lhe sovehcy o lhe programs; reporls oh slale ahd
oca goverhmehl hahces; academc pubcalohs oh
healh care, relremehl reorm, savhgs, ahd hcome
dsparly; ahd evaualohs o lhe sca slmuus ahd
mohelary aclohs lakeh durhg lhe recessoh.
lh addloh lo ahayss o ohgohg evehls, lhe Fouhda
loh aso produces resources or clzehs lo be abe
lo uhderslahd, oow, ahd cohlrbule lo lhe pubc
debale. These loos hcude sca ssue prmers,
charls, a gossary o budgel ahd ecohomc lerms,
summares o goverhmehl budgel pro|eclohs, ahd
hks lo lhrdparly ahayses. These pubcalohs are
avaabe oh our websle al www.pgp.org.
8hce lhe Fresdehl's Commssoh oh Fsca Respoh
sbly ahd Reorm reeased ls pah h December o
2010, mahy groups ahd polcahs have oered lher
owh vsohs o sca reorm, ahd sca ssues have
become hcreashgy promhehl lopcs h lhe meda.
The Fouhdaloh has provded accessbe ahd ob|eclve
ahayss o mahy o lhe pahs reeased, hcudhg
summares, comparsoh labes, ahd graphs lo hep
Amercahs assess lhe choces beore us.
As parl o ls eorls lo rase lhe eve o uhderslahdhg
aboul sca chaehges ahd soulohs h bolh Washhgloh
ahd across Amerca, lhe Felersoh Fouhdaloh reguary
ssues reporls ahd ahayses, hcudhg lhe 8lale o lhe
Uhoh's Fhahces. These pubcalohs have eslabshed
lhe Felersoh Fouhdaloh as a lrusled source o uhbased,
hdepehdehl hormaloh aboul edera sca pocy.
(FAClNC FACE) FACE8 FROM THE FOUNDATlON'8 %!2!3$4/$!53$*6746-%$/762683%, A CUlDE TO THE FEDERAL
COVERNMENT'8 FlNANCE8, lT8 LONCTERM Fl8CAL CHALLENCE8, AND FOTENTlAL 8OLUTlON8.
!" !"#$%&'()*%("*%$&'+%&'()*&,!*%-!.'$%(*/#01'$
?A
BUlLDlNC FUBLlC AWARENE88 ABOUT OUR Fl8CAL FUTURE
Deverhg a compehg message requres slraghl acls
ahd a healhy dose o crealvly. Through lhe OweNo
campagh, lhe salrca cahddacy o Hugh Jdelle, ahd
a varely o adverlsemehls, lhe Felersoh Fouhdaloh s
ehgaghg cohcerhed clzehs across lhe haloh.
Whe dscussohs aboul Amerca's sca ulure are
commohpace h Washhgloh, D.C., we aso seek lo
hspre cohversalohs al klcheh labes across Amerca.
Thal's why lhe Felersoh Fouhdaloh has deveoped a
humber o pubc awarehess eorls lo cohhecl wlh
lhe Amercah pubc.
lh 2010, lhe Fouhdaloh auhched a pubc awarehess
campagh uhder lhe bahher OweNo. The campagh's
goas are lo educate Amercahs aboul lhe cohsequehc
es o our soarhg debl ahd decls, build ccnsensus
amohg cohcerhed clzehs o a polca persua
sohs oh lhe heed or sehsbe soulohs, ahd, mosl
mporlahly, engage peope across lhe couhlry h a
movemehl or chahge. Through ls campagh websle
ahd soca helworkhg properles, l oers loos ahd
resources lo hep Amercahs gel hvoved wlh pullhg
our haloh oh a more suslahabe sca palh.
To hep calayze pubc hleresl, lhe campagh ealures
a salrca presdehla cahddale, Hugh Jdelle (a pay
oh lhe phrase Huge Debl), whose absurd sca
palorm s spolghled lhrough a humorous adverlshg
campagh lhal drves home a serous message. Whe
hs poslohs souhd slrahge ahd uhbeevabe, uhor
luhaley a o lhe acls ahd gures lhal he cles are
ehlrey lrue brhghg lo ghl our sca chaehges ahd
lhe lhreals lhey pose lo our haloh's ecohomc ulure.
Through humerous olher adverlsemehls, lhe Fouhda
loh has heped lo ocus pocymakers ahd lhe pubc
oh lhe heed or sca acloh. lh 2008, lhe Fouhdaloh
rah mulpe adverlsemehls cahg oh presdehla
cahddales lo recoghze lhe urgehcy o our growhg
debl ahd depehdehce oh oregh ehders, ahd move
decsvey lo correcl sca mbaahces. 8ubsequehl
adverlsemehls hghghled lhe acls aboul lhe uhsus
lahably o growhg relremehl ahd healh care ob
galohs, as we as lhe pubc's avorabe allludes
loward a bparlsah sca commssoh.
lh Oclober 2011, lhe Felersoh Fouhdaloh served as
lhe oca broadcasl spohsor o a New Hampshre
presdehla prmary debale hosled by Boomberg
ahd lhe washingtcn Fcst al Darlmoulh Coege. As
parl o lhe spohsorshp, lhe Fouhdaloh rah horma
loha adverlsemehls h whch chdreh, whose ulure
s mosl al slake, oer acls aboul Amerca's debl ahd
decls. The debale was lhe rsl orum h lhe 2012
prmary seasoh lhal ocused excusvey oh sca
ahd ecohomc ssues. As such, l served lo advahce
lhe Fouhdaloh's educaloha mssoh ahd hep ocus
allehloh oh how our haloh's eaders ahd polehla
eaders pah lo pul Amerca oh a more suslahabe
sca palh.
Through lhese hlehsve eorls lo draw allehloh
lo lhe haloh's sca chaehges ahd pubcze lhe
growhg appelle or deahg wlh lhem, lhe Fouh
daloh s hephg lo bud momehlum or ohglerm
soulohs h Washhgloh.
" ?B EDUCATlNC AND ACTlVATlNC THE AMERlCAN FUBLlC
(CLOCKWl8E) lNFORMATlONAL ADVERTl8lNC U8ED TO HlCHLlCHT THE NEED FOR Fl8CAL 8U8TAlNABlLlTY; lMACE
FROM AN EDUCATlONAL TELEVl8lON AD AlRED BY THE FOUNDATlON DURlNC A NEW HAMF8HlRE FRE8lDENTlAL
DEBATE; HUCH JlDETTE, A 8ATlRlCAL FRE8lDENTlAL CANDlDATE FEATURED lN THE OWENO CAMFAlCN.
?C
REACHlNC AUDlENCE8 ACRO88 THE COUNTRY
Reeased h November 2008, |.C.U.8.A. broughl lhe
haloh's sca chaehges lo e h more lhah 300
lhealers, prvale screehhgs, ahd homes across lhe
couhlry ahd cared compex lopcs, such as debl
loCDF ralos, debl cehgs, lhe composloh o lhe
edera budgel, ahd lhe ma|or drvers o rshg debl. lh
vvd dela, lhe crlcay accamed m weaves hler
vews wlh experls, ahd clzehs across lhe couhlry wlh
compehg ecohomc dala lo show how our growhg
sca probems w aecl every shge Amercah
especay loday's youhg peope ahd lhe gehera
lohs lo oow, whose ulure depehds oh addresshg
lhese presshg ssues. The leslmohy o clzehs ahd
wekhowh sub|ecls such as Warreh Buel, ormer
Charmeh o lhe Federa Reserve Aah Creehspah ahd
Fau Vocker, ahd ormer Treasury 8ecrelares Fau
O'Ne ahd Roberl Rubh make lhe m a hohparlsah
ahd pohledy lopca harralve.
lh Apr 2010, lhe Fouhdaloh reeased |.C.U.8.A.:
8cluticns, a seque lo lhe orgha documehlary.
Budhg oh lhe lough queslohs rased h lhe rsl m,
8cluticns oered a praclca bueprhl ahd sehsbe
sleps lo gel our haloh's sca house h order. Foowhg
lhe m's CNN premere, a leevsed pahe dscus
soh ealurhg sehor Fouhdaloh eaders broughl our
perspeclve lo everyday Amercahs oh lhe mporlahce
o achevhg ohglerm sca suslahably. Much ke
lhe orgha m, |.C.U.8.A.: 8cluticns earhed a arge
vewershp, hol ohy durhg ls leevsed broadcasl,
bul aso oh YouTube ahd across lhe lhlerhel.
For a Amercahs eveh lhose weversed h hahca
mallers uhderslahdhg lhe ehormly o our ohglerm
sca crss cah be chaehghg. Wlh lhs h mhd, lhe
Felersoh Fouhdaloh spohsored lhe grouhdbreakhg m
|.C.U.8.A., a documehlary lhal puls lhe sze ahd scope
o our haloha debl ahd decls h accessbe lerms or
Amercahs o a ages ahd backgrouhds.
(FAClNC FACE) THE MOVlE FO8TER FOR |.C.U.8.A., THE FOUNDATlON'8 CRlTlCALLY ACCLAlMED DOCUMENTARY
ON AMERlCA'8 Fl8CAL 8lTUATlON.
" ?D EDUCATlNC AND ACTlVATlNC THE AMERlCAN FUBLlC
?H
BRlNClNC THE FEOFLE'8 VOlCE TO THE BUDCET DEBATE
The Felersoh Fouhdaloh beeves lhal clzeh
ehgagemehl s crlca lo ls mssoh. To empower
lhe Amercah peope lo lake acloh, lhe Fouhdaloh
has supporled a humber o hhovalve parlhershps,
hcudhg a sghalure eorl wlh Amerca8peaks,
a hohparlsah orgahzaloh lhal works lo provde
clzehs wlh a voce oh lhe mosl mporlahl decsohs
lhal mpacl lher ves.
lh Juhe 2010, Amerca8peaks broughl logelher
lhousahds o Amercahs h 20 cles across lhe haloh
lo parlcpale h commuhly dscussohs aboul our
sca ulure. Clzehs rom a waks o e earhed
aboul sca ahd ecohomc ssues ahd expressed lher
preerehces or budgelary reorm. The orums were
hed smulaheousy ahd hked logelher by salele
or a lruy haloha dscussoh, ahd oered Amercahs
ah opporluhly lo dscuss our sca chaehges wlh
lher eow clzehs. The resulhg recommehdalohs
were shared wlh pocymakers as Amerca's soulohs
or a suslahabe sca ulure.
The dscussohs resuled h varous eves o supporl
or a rahge o oplohs, hcudhg rashg lax rales
oh corporalohs ahd weo hdvduas, hcreashg
lhe age or recevhg u 8oca 8ecurly behels,
ahd reduchg deehse spehdhg by 1015 percehl.
Farlcpahls were aso asked lo deveop messages
lo sehd lo lher eecled ocas. Amohg lhe mosl
popuar was, Fease hd lhe polca w lo use lhs
hpul as l were comhg rom a poweru obbyhg
group because we are.
From 2008 lhrough 2011, lhe Fouhdaloh parlhered
wlh The Cohcord Coaloh lo supporl ls Fsca
WakeUp ahd Fsca 8oulohs Tour, whch educaled
Amercahs aboul our haloha budgel chaehges ahd
lhe choces hvoved h addresshg lhem. lh our years,
lhe lour slopped h more lhah 70 cles.
Wlh uhdhg supporl rom lhe Felersoh Fouhda
loh, our ormer CEO, Davd Waker, auhched lhe
Comeback Amerca lhlalve (CAl) h 2010. Rooled
h lhe recommehdalohs hcuded h Davd's book,
Ccmeback America, CAl educales Amercahs aboul
our sca chaehges ahd oers a varely o proposas
lo address lhem. Davd serves as ah eeclve ahd
khowedgeabe advocale or sca respohsbly he
reguary lraves lhe couhlry, speakhg lo audehces
o cohcerhed Amercahs, expahhg lhe maghlude o
our sca chaehges ahd oerhg cohcrele soulohs.
The Amercah peope shoud be aclve parlcpahls h
advahchg soulohs lo our haloh's sca chaehges.
Thal's why lhe Felersoh Fouhdaloh has parlhered wlh
Amerca8peaks, The Cohcord Coaloh, ahd olhers lo
ehsure lhe pubc's voce s heard.
(FAClNC FACE) FARTlClFANT8 TAKE FART lN AMERlCA8FEAK8' OUR BUDCET, OUR ECONOMY EVENT, WHlCH
CONVENED THOU8AND8 OF AMERlCAN8 lN ClTlE8 ACRO88 THE COUNTRY TO Dl8CU88 HOW THE U.8. 8HOULD
ACHlEVE Fl8CAL 8U8TAlNABlLlTY.
" ?E EDUCATlNC AND ACTlVATlNC THE AMERlCAN FUBLlC
@G
TEACHlNC YOUNC AMERlCAN8 ABOUT THElR Fl8CAL FUTURE
Few essohs are devoled lo ecohomc ahd sca pocy
h mosl schoo currcua. As a resul, sludehls oleh
graduale rom hgh schoo ackhg lhe awarehess ahd
ahaylca loos lo uhderslahd ahd parlcpale meah
hguy h dscussohs aboul lhe haloh's ecohomc
ahd sca prorles dscussohs lhal drecly mpacl
lher ulure.
To mprove hslrucloh oh ecohomc pocy ssues, lhe
Fouhdaloh provded a lhreeyear grahl lo Coumba
Uhversly's Teachers Coege lo deveop a compreheh
sve currcuum or courses h ecohomcs, cvcs, U.8.
hslory, word hslory ahd malhemalcs, hghghlhg
lhe haloh's sca chaehges. The currcuum w be
made avaabe ree o charge lo every hgh schoo h
lhe couhlry.
Tled Uhderslahdhg Fsca Respohsbly: A Currc
uum or Teachhg Aboul lhe Federa Budgel, Naloha
Debl ahd Budgel Decl, lhe hohparlsah, hqury
based currcuum w leach sludehls lhe acls aboul
pubc poces lhal have ed lo persslehl budgel
decls ahd dehly lhe sghcahl cohsequehces our
growhg haloha debl has oh lhe ulure o lhe Uhled
8lales ahd ls clzehs. Ah advsory board o experls h
ecohomcs, sca pocy, ahd educaloh has revewed
lhe essohs. The currcuum hcorporales books,
prmary sources, smualohs, ahd olher vsua ahd
dgla meda.
Aler edleslhg lhe currcuum h 56 cassrooms h
Texas, Fehhsyvaha, ahd New York, lhe ha versoh
w be dslrbuled halohwde h 2012. Coumba
Teachers Coege has commssohed lhe Naloha
Cehler or Reslruclurhg Educaloh, 8choos ahd
Teachhg (NCRE8T) lo cohducl ah evaualoh o lhe
resuls o lhe currcuum.
The Fouhdaloh aso advahced ls educaloha mssoh
by provdhg Amerca's Fromse Aahce a parl
hershp o more lhah 400 orgahzalohs ocused oh
chahghg oulcomes or chdreh wlh a grahl lo
expahd lhe leachhg o hahca leracy lo mdde ahd
hgh schoo sludehls across lhe couhlry.
lh addloh, lo ehgage sludehls h a uh ahd hleraclve
way, lhe Fouhdaloh aso provded a grahl lo supporl
Budgelba, ah ouldoor game crealed by lhe Naloha
Academy o Fubc Admhslraloh ahd Farsohs The New
8choo or Desgh, whch combhes physca sk wlh
sca slralegy. The game has beeh payed oh lhe haloha
ma h Washhgloh, D.C., ahd oh campuses halohwde.
Teachhg sludehls aboul sca pocy cah hep lo eslabsh
a ouhdaloh or hahca leracy ahd aclve clzehshp.
The Felersoh Fouhdaloh s workhg wlh Coumba Teachers
Coege ahd olhers lo deveop ehgaghg, hormalve ways
lo hcrease uhderslahdhg o sca ssues amohg youhg
Amercahs.
(FAClNC FACE) HlCH 8CHOOL 8TUDENT8 8TUDY THE NATlON'8 Fl8CAL CHALLENCE8 THROUCH A CURRlCULUM
DEVELOFED BY COLUMBlA TEACHER8 COLLECE WlTH A CRANT FROM THE FOUNDATlON.
" @F EDUCATlNC AND ACTlVATlNC THE AMERlCAN FUBLlC
@?
ENCAClNC THE NEXT CENERATlON
Whe sca pocy s hol exacly lopomhd or mosl
leehs ahd coege sludehls, lhe slakes are lremeh
dous. Our skyrockelhg debl, decls, ahd hleresl
cosls coud ead lo sharp reduclohs h pubc ahd
prvale hveslmehl ahd hcreases h laxes lhal reduce
lher slahdard o vhg ahd ml lhe opporluhles
avaabe lo lhem as aduls.
lh 2009, lo educale youhg Amercahs aboul lhese
presshg ssues ahd lo empower lhem lo lake acloh,
lhe Felersoh Fouhdaloh leamed up wlh MTV's
coege campus helwork, mlvU, lo auhch lhdebled.
8horl or hdebl educaloh, lhe lhdebled campagh
commuhcaled lhe rea burdeh o lhe debl lhal youhg
Amercahs w hherl, wlh lhe goa o hephg coege
sludehls uhderslahd ahd ulmaley lake charge o
lhe sca chaehges lhey w ace aler gradualoh.
lhdebled drove home lhe message lhal lhe mohey our
couhlry s borrowhg loday w evehluay be pad back
by loday's youhg peope ahd ulure geheralohs. The
campagh aso ehcouraged sludehls lo lake cohlro o
lher persoha hahces by pahhhg or lhe ulure ahd
savhg respohsby.
Through lhe MTV campus helwork, lhe program
reached upwards o 9 moh coege sludehls oh
huhdreds o coege campuses across lhe haloh.
The campagh's websle ealured hormaloh aboul
respohsbe credl card use ahd hcuded a popuar
vdeo game caed Debl 8k, whch uslrales lhe
mporlahce o maxmzhg savhgs, payhg or heces
sles, ahd preparhg or uhexpecled e evehls.
The aller was hspred by a sludehl parlcpalhg h
lhdebled's Dgla Chaehge, whch caed oh youhg
peope rom across lhe haloh lo deveop hleraclve
deas lo promole lhe message o lhe campagh.
The Fouhdaloh aso worked wlh Mobze.org lo brhg
logelher members o lhe mehha geheraloh lo
expore lher roe h addresshg lhe hahca ssues
achg lhe haloh. Wlh Fouhdaloh uhdhg, Mobze.org
cohvehed lhe Naloha Youlh 8umml, ehlled
Democracy 2.0: Exporhg lhe Mehha Ceheraloh's
Relurh oh lhveslmehl, whch ocused oh soulohs lhal
goverhmehl ahd lhe prvale seclor coud mpemehl h
our key areas healh care, laxes, ehllemehls, ahd
persoha hahca respohsbly ahd leracy wlh
allehdees presehlhg cohcrele proposas lo mprove
lhe ecohomc healh o Amerca's youhger geheralohs.
lh 2010, lhe Felersoh Fouhdaloh hlaled lhe Feler
C. Felersoh Fouhdaloh Fsca lhlerhshp program lo
ehabe uhdergraduale ahd graduale sludehls lo spehd
summers h Washhgloh, D.C., workhg wlh lop sca
pocy experls ahd schoars al eadhg pocy research
orgahzalohs. Ths program, whch s admhslered
lhrough lhe Cohcord Coaloh, brhgs lhe sludehls
logelher h a weeky semhar ahd gves lhem a coseup
vew o lhe ssues ahd lhe pocy deveopmehl process.
The Felersoh Fouhdaloh w cohlhue lo work wlh
youlhorehled orgahzalohs lo educale youhg
Amercahs aboul lhe ways h whch ohglerm debl
ahd decls mpacl lher ulure, wlh lhe goa o mol
valhg lhem lo slay hormed ahd aclvey work loward
soulohs lo lhe haloh's sca chaehges.
The ecohomc ahd sca choces we make loday w have
proouhd cohsequehces or lhe hexl geheraloh. The Felersoh
Fouhdaloh has worked wlh mlvU, Mobze.org, ahd olhers
lo reach oul lo Amerca's hexl geheraloh o eaders,
demohslralhg why sca pocy s so crlca lo lher ulure.
" @@ EDUCATlNC AND ACTlVATlNC THE AMERlCAN FUBLlC
8TUDENT8 FARTlClFATlNC lN THE lNDEBTED CAMFAlCN, A COLLABORATlON BETWEEN THE FETER8ON FOUNDA
TlON AND MTVU THAT EDUCATED AND EMFOWERED COLLECE 8TUDENT8 TO TAKE A 8TAND ON Fl8CAL l88UE8.
ABOUT THE FOUNDATlON:
TO LEARN MORE ABOUT
THE FETER C. FETER8ON
FOUNDATlON, AMERlCA'8
Fl8CAL CHALLENCE8,
AND HOW YOU CAN TAKE
ACTlON TO HELF 8OLVE
THEM, FLEA8E Vl8lT OUR
WEB8lTE, JOlN U8 ON
FACEBOOK, OR CHECK OUT
OUR YOUTUBE FACE
WWW.FCFF.ORC
WWW.FACEBOOK.COM/FCFFOUNDATlON
WWW.YOUTUBE.COM/FCFFOUNDATlON
" @B
THE ALTARUM lN8TlTUTE
To supporl lhe Juhe 2009 coherehce or schoars, healh pocy
experls, ahd meda lo examhe ahd hcrease awarehess o
key healh chaehges lhal are hked lo Amerca's sca crss.
(S35,000)
AMERlCA8FEAK8
To supporl provdhg clzehs wlh a grealer opporluhly or
cvc ehgagemehl arouhd crlca ssues ahd deberaloh over
compex sca pocy ssues. (S50,000)
AMERlCA'8 FROMl8E THE ALLlANCE FOR YOUTH
To supporl lhe deveopmehl o a youlh currcuum lo expahd
lhe leachhg o hahca leracy lo mdde ahd hgh schoo
sludehls across lhe couhlry. (S1,000,000)
BE THE CHANCE, lNC.
To supporl lhe 8ervceNaloh Fresdehla Cahddales Forum
ahd 8umml ahd a haloha Day o Acloh lo hcrease haloha
servce opporluhles ahd slrehglheh cvc culure. (S250,000)
THE BROOKlNC8 lN8TlTUTlON
To supporl lhe Budgel or Naloha Frorles Fro|ecl, ah
accessbe ahayss o lhe couhlry's sca slualoh lhal
documehls lhe probem ahd ealures possbe soulohs.
(S50,000)
CENTER FOR THE 8TUDY OF THE FRE8lDENCY
To supporl a comprehehsve hel assessmehl lo hep gude lhe
hew Fresdehl h deveophg a slralegc roadmap or addresshg
ahd cohrohlhg lhe haloh's mosl urgehl chaehges.
(S700,000)
COMMlTTEE FOR ECONOMlC DEVELOFMENT
To supporl lhe ehslmehl o sehor corporale execulves ahd
hexl geheraloh bushess eaders h sca reorm eorls, ohhe
oulreach, ahd evehls ocused oh ohglerm sca chaehges.
(S1,000,000)
THE COMMON COOD lN8TlTUTE
To supporl lhe deveopmehl ahd operaloh o ah ohhe
pocy orum, NewTak, lhal w ehabe experls lo ehgage h
cohversaloh aboul lhe mosl presshg domeslc ssues achg
Amerca's ulure, hcudhg our ecohomc ahd sca chaehges.
(S45,000)
CONCORD COALlTlON
To supporl lhe Fsca WakeUp Tour, a seres o lowh ha
meelhgs cohducled across lhe couhlry desghed lo ehgage
ahd educale lhe pubc oh lhe haloh's ohglerm sca oulook.
(S1,500,000)
EMORY UNlVER8lTY
To supporl lhe crealoh o lhe Cehler or Ehllemehl Reorm, a
research cehler lhal ahayzes aclors respohsbe or hcreased
edera ehllemehl spehdhg ahd ormuales hew approaches
or achevhg beller healh care vaue. (S600,000)
NATlONAL ACADEMY OF FUBLlC ADMlNl8TRATlON
To supporl lhe deveopmehl o Budgelba, a sca sporl or
use h promolhg hahca ahd sca leracy amohg coege
sludehls. (S325,000)
To supporl lhe mpemehlaloh o Budgelba oh coege ahd
uhversly campuses across lhe Uhled 8lales ahd a 2009
Budgelba oh lhe Ma evehl h Washhgloh, D.C. (S458,671)
NATlONAL ACADEMY OF 8ClENCE8
To supporl lhe lhsllule o Medche's eorls lo draw allehloh
lo opporluhles lo mprove vaue ahd reduce lhe cosls o
healh care h lhe Uhled 8lales lhrough pubc meelhgs al
lhe Naloha Academes ahd a pubcaloh summarzhg lher
dscussoh ahd hdhgs. (S945,000)
NATlONAL ACADEMY OF 8OClAL lN8URANCE
To supporl a haloha coherehce lo promole ahd aclale
mprovhg soca hsurahce programs ahd lhe healh care
hahchg syslem ahd ehcourage sca respohsbly ahd
ecohomc growlh. (S35,000)
NETWORK FOR TEACHlNC ENTREFRENEUR8HlF
To supporl lhe deveopmehl o currcua or eemehlary ahd
secohdary schoo sludehls h owhcome areas lo hcrease
hahca leracy. (S295,000)
NEW AMERlCA FOUNDATlON
To supporl lhe FelersohFew Commssoh oh Budgel Reorm
al lhe Commllee or a Respohsbe Federa Budgel lo evauale
ahd make recommehdalohs lo mprove lhe edera budgel
process. (S1,250,000)
Ll8T OF CRANTEE8
'.23-4"I$-&"?GGE"
36
NUCLEAR THREAT INITIATIVE
To support the establishment of the World Institute for Nuclear
Security, a new international organization to help nuclear
security practitioners implement more effective and efficient
programs to secure nuclear materials. ($3,000,000)
PETERSON INSTITUTE FOR INTERNATIONAL ECONOMICS
To support a study and roundtable on the magnitude and
impact of growing global public debts and identify possible
implications for the world economy and the United States.
($100,000)
To support efforts to broaden public understanding of
globalization and the risks of short-sighted economic and fiscal
policies. ($50,000)
PROPUBLICA, INC.
To support the ProPublica Prizes for Investigative Governance,
honoring outstanding work in investigative reporting by
governmental bodies in the United States. ($49,000)
PUBLIC AGENDA FOUNDATION, INC.
To support the expansion of Students Face Up to the Nations
Finances, an initiative designed to engage college students
across the nation on Americas fiscal challenges. ($500,000)
THE STATE OF THE USA, INC.
To support the development of measures for assessing key
fiscal conditions and trends in the United States that will allow
Americans to assess the nations progress on pressing issues.
($400,000)
TRANSATLANTIC FUTURES, INC.
To support the development of multimedia content designed
to provide innovative ways to address economic and social
challenges threatening Americas future. ($40,000)
AMERICASPEAKS
To support a national discussion on the fiscal future of the
United States in 20 cities across the nation and provide citizens
with an opportunity to consider options to address long-term
budget challenges. ($2,337,470)
AMERICAN SOCIETY FOR PUBLIC ADMINISTRATION
To support the 2009 ASPA Annual Conference to provide
participants an opportunity to learn about public
administration and recent developments in federal, state and
local fiscal affairs. ($15,000)
To support the 2010 ASPA Annual Conference to provide
participants an opportunity to learn about public
administration and recent developments in federal, state and
local fiscal affairs. ($30,000)
COLUMBIA UNIVERSITY
To support a one-year fellowship at the ColumbiaJournalism
Review to comment on the content and quality of media
coverage of fiscal issues. ($49,000)
COMMITTEE FOR ECONOMIC DEVELOPMENT
To support the enlistment of senior corporate executives and
next generation business leaders in fiscal reform efforts, online
outreach, and events focused on long-term fiscal challenges.
($603,616)
CONCORD COALITION
To support efforts to educate the public about the causes
and consequences of federal budget deficits, the long-term
challenges facing Americas unsustainable entitlement
programs, and how to build a sound foundation for economic
growth. ($1,337,428)
To support the Youth Action Conference to engage Millennials in
a discussion of fiscal issues. ($46,560)
HOPE STREET GROUP
To support the Bipartisan Working Group on Health Care
Reform to address health care policies and disseminate
findings in an effort to engage thought leaders in the areas of
health care policy and cost containment. ($10,000)
INSTITUTE FOR HEALTHCARE IMPROVEMENT
To support the symposium, How Do They Do That? Low-
Cost, High-Quality Health Care in America, to learn from the
experiences of high-value health care systems. ($40,000)
Fiscal Year 2010
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MOBlLlZlNC AMERlCA'8 YOUTH, lNC.
To supporl Mobze.org's Democracy 2.0 Campagh ahd
lhe 2009 Mehha Relurh oh lhveslmehl 8umml, whch
expored lhe humerous hahca ssues achg Amerca ahd lhe
Mehha Ceheraloh's roe h addresshg lhem. (S240,000)
NATlONAL ACADEMY OF FUBLlC ADMlNl8TRATlON
To supporl lhe 2010 Budgelba oh lhe Ma evehl h
Washhgloh, D.C. lo promole hahca ahd sca leracy amohg
coege sludehls. (S226,621)
FARTNER8HlF FOR FUBLlC 8ERVlCE
To supporl a coherehce exporhg lhe heed or |ohl eorls by
goverhmehl ahd ouhdaloh eaders lo mprove lhe operaloha
capacly ahd eeclvehess o goverhmehl. (S35,000)
FETER8ON lN8TlTUTE FOR lNTERNATlONAL ECONOMlC8
To supporl research oh lhe hlerhaloha dmehsohs o lhe
sca mbaahces o lhe Uhled 8lales, hcudhg ah apprasa
o key credlor couhlres' hlerhaloha ecohomc poslohs ahd
poces. (S390,000)
TEACHER8 COLLECE, COLUMBlA UNlVER8lTY
To supporl lhe deveopmehl o a hew, comprehehsve soca
sludes ahd malhemalcs currcuum lo hep hgh schoo
sludehls across lhe Uhled 8lales uhderslahd lhe acls,
sghcahce, ahd cohsequehces o Amerca's sca chaehges.
(S2,447,596)
WNET
To supporl Our Uhsuslahabe Fulure, a speca yearohg
meda hlalve lo address lhe crlca sca ssues lhal w
delermhe lhe oulcome o Amerca's ulure. (S1,000,000)
AMERlCAN ENTERFRl8E lN8TlTUTE
To supporl lhe deveopmehl o comprehehsve ahd specc
soulohs lo address lhe haloh's ohglerm sca chaehges,
as parl o lhe Feler C. Felersoh Fouhdaloh 8oulohs lhlalve.
(S200,000)
AMERlCAN 8OClETY FOR FUBLlC ADMlNl8TRATlON
To supporl lhe 2011 A8FA Ahhua Coherehce lo provde
parlcpahls ah opporluhly lo earh aboul pubc
admhslraloh ahd recehl deveopmehls h edera, slale ahd
oca sca aars. (S30,000)
BlFARTl8AN FOLlCY CENTER
To supporl lhe eslabshmehl o lhe Debl Reducloh Task Force
lo deveop a ohglerm budgel pah lo reduce pro|ecled edera
debl ahd pace lhe Uhled 8lales oh a suslahabe sca palh,
whch was hcorporaled hlo lhe Feler C. Felersoh Fouhdaloh
8oulohs lhlalve. (S200,000)
To supporl poslauhch aclvles o lhe Debl Reducloh Task
Force's deveopmehl ahd dssemhaloh o ls ohglerm budgel
pah lo reduce pro|ecled edera debl. (S200,000)
CENTER FOR AMERlCAN FROCRE88
To supporl lhe deveopmehl o comprehehsve ahd specc
soulohs lo address lhe haloh's ohglerm sca chaehges,
as parl o lhe Feler C. Felersoh Fouhdaloh 8oulohs lhlalve.
(S200,000)
To supporl sludes o healh care cosl cohlahmehl
slraleges, hcudhg paymehl buhdhg ahd accouhlabe care
orgahzalohs. (S355,919)
CENTER FOR FRACTlCAL BlOETHlC8
To supporl lhe deveopmehl o a bushess pah or lhe Coaloh
lo Trahsorm Advahced Care (CTAC), a hew orgahzaloh
ocused oh mprovhg ehdoe care. (S220,000)
COMEBACK AMERlCA lNlTlATlVE
To supporl a hew hlalve over a lhreeyear perod lo address
edera sca ssues by ehgaghg lhe pubc ahd assslhg
pocymakers oh a hohparlsah bass lo hep sove Amerca's
ohglerm sca chaehges. (S3,100,000)
CONCORD COALlTlON CORF.
To supporl eorls lo educale lhe pubc aboul lhe causes
ahd cohsequehces o edera budgel decls, lhe ohglerm
chaehges achg Amerca's uhsuslahabe ehllemehl
programs, ahd how lo bud a souhd ouhdaloh or ecohomc
growlh. (S1,408,900)
Ll8T OF CRANTEE8
'.23-4"I$-&"?GFF
38
CONCORD COALITION CORP.
To support the Fiscal Solutions Tour, a follow-up to the Fiscal
Wake-Up Tour that is designed to engage the public, the media,
and policymakers in dialogue about our nations future and
potential solutions to the current fiscal challenges that we face.
($75,000)
To support the creation of the Peter G. Peterson Foundation
Fiscal Internship Program, to establish and support an
internship program in 2010 for undergraduate and graduate
students. ($60,000)
To support the 2011 Peter G. Peterson Foundation Fiscal
Internship Program. ($47,000)
ECONOMIC POLICY INSTITUTE
To support the development of comprehensive and specific
solutions to address the nations long-term fiscal challenges,
as part of the Peter G. Peterson Foundation Solutions Initiative.
($200,000)
THE HERITAGE FOUNDATION
To support the development of comprehensive and specific
solutions to address the nations long-term fiscal challenges,
as part of the Peter G. Peterson Foundation Solutions Initiative.
($200,000)
HOPE STREET GROUP
To support the Bipartisan Working Group on Health Care
Reform to address health care policies and disseminate
findings in an effort to engage thought leaders in the areas of
health care policy and cost containment. ($48,500)
INSTITUTE FOR HEALTHCARE IMPROVEMENT
To support the How Will We Do That? symposium to examine
how to build low-cost, high-quality health care in communities
across the United States. ($269,371)
NABE FOUNDATION OF THE NATIONAL ASSOCIATION
FOR BUSINESS ECONOMICS
To support the NABE Foundations work with NABEs 2011
Economic Policy Conference, a national event addressing the
nexus of economics, business, and policymaking. ($35,000)
NEW AMERICA FOUNDATION
To support the Peterson-Pew Commission on Budget Reform
at the Committee for a Responsible Federal Budget to advance
responsible fiscal policy and budget process reform through
outreach and engagement toward policymakers, opinion
leaders, media, and the public. ($500,000)
To support the Moment of Truth Project at the Committee for a
Responsible Federal Budget to advance responsible fiscal policy
and budget process reform through outreach and engagement
efforts. ($300,000)
NUCLEAR THREAT INITIATIVE
To support the Connecting Organizations for Regional Disease
Surveillance (CORDS) initiative, which links regional disease
surveillance networks to improve global capacity to respond to
infectious diseases, and the Nuclear Materials Security Index, a
benchmarking project of nuclear materials security conditions
on a country-by-country basis. ($1,000,000)
PETERSON INSTITUTE FOR INTERNATIONAL ECONOMICS
To support research that examines global aggregate public debt
projections under likely scenarios through 2030, discusses
the implications of these issues for the United States, and
investigates the potential long-term impact across global
economies. ($225,000)
PROJECT HOPE
To support a HealthAffairsconference and publication of case
studies on innovative projects addressing health care costs and
quality. ($50,000)
RICE UNIVERSITY
To support a conference examining the historical economic
effects of debt crises, the looming fiscal crisis in the United
States, and potential solutions. ($25,000)
THE FRANKLIN AND ELEANOR ROOSEVELT INSTITUTE
To support the Roosevelt Institute Campus Networks
development of comprehensive and specific solutions to
address the nations long-term fiscal challenges, as part of the
Peter G. Peterson Foundation Solutions Initiative. ($200,000)
HENRY L. STIMSON CENTER
To support an analysis of alternative defense strategy and
mission choices as part of the Budgeting for Foreign Affairs and
Defense program. ($500,000)
" @E
FlNANClAL OVERVlEW
lh lhe Fouhdaloh's rsl lhree years o operalohs,
lola expehdlures were approxmaley S68.2 moh,
hcudhg S54.5 moh h program expehdlures ahd
S13.7 moh h supporlhg servces. A breakdowh o
program expehdlures s showh h lhe charl beow.
The Fouhdaloh's lola uhreslrcled assels reached
S471.8 moh by lhe year ehded March 31, 2011
due prmary lo cumualve uhdhg o S458.0 m
oh rom ls ouhder. The Fouhdaloh's ahhua hah
ca slalemehls have beeh audled by Mlche & Tlus,
LLF, a member rm o Erhsl & Youhg Coba Lmled.
S32,219,000
Crahls & Crahlmakhg
S8,998,000
Fubc Awarehess & Ehgagemehl
S11,219,000
Educaloh & Oulreach
S2,026,000
Focy Research & Ahayss
*(%-4"9&(5&-)"<JK$/6.%1&$2"L?GGHM?GFFN
S54,462,000
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FETER C. FETER8ON
Charmah ahd Che Execulve Ocer
MlCHAEL A. FETER8ON
Fresdehl ahd Che Operalhg Ocer
JOAN CANZ COONEY
Dreclor
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LORETTA UCELLl
Vce Fresdehl, Commuhcalohs ahd Fubc Aars
8U8AN TANAKA
Vce Fresdehl, Research
DOUCLA8 HAMlLTON
Dreclor, Research
FAUL NEWMAN
Che Fhahca Ocer
'(1/6-%.(/"!6=.2(&:"8(-&6"7$)>$&2
8EC. ROBERT RUBlN, (CoCharmah); CoCharmah, Couhc
oh Foregh Realohs; Former Uhled 8lales 8ecrelary o lhe
Treasury
8EC. CEORCE 8HULTZ, (CoCharmah); Thomas W. & 8usah
B. Ford Dslhgushed Feow, Hoover lhsllule 8lahord
Uhversly; Former Uhled 8lales 8ecrelary o 8lale
DlANA AVlV, Fresdehl ahd CEO, lhdepehdehl 8eclor
CRAlC BARRETT, Former Charmah, lhle Corporaloh
RlCHARD BEATTlE, Charmah, 8mpsoh
Thacher & Barlell LLF
8EN. WlLLlAM BRADLEY, Mahaghg Dreclor, Aeh
& Compahy LLC; Former Uhled 8lales 8ehalor
8YLVlA MATHEW8 BURWELL, Fresdehl,
The Wamarl Fouhdaloh
COV. MARlO CUOMO, O Couhse, Wke Farr &
Caagher LLF; Former Coverhor o New York
BARRY DlLLER, Charmah ahd CEO, lAC/lhlerAclveCorp
ROCER FERCU8ON, JR., Fresdehl ahd CEO, TlAACre
HARVEY FlNEBERC, Fresdehl, lhsllule o Medche
LE8LlE CELB, Fresdehl Emerlus, Couhc oh
Foregh Realohs
THOMA8 MACKELL, Charmah, Uhled Behels
ahd Fehsoh 8ervces, lhc.
WlLLlAM NOVELLl, Froessor, Ceorgelowh
Uhversly; Former CEO o AARF
RlCHARD FLEFLER, CoFresdehl, Home Box Oce
RlCHARD 8ALOMON, Mahaghg Farlher, Easl Ehd Advsors
8HERYL 8ANDBERC, COO, Facebook
8EC. DONNA 8HALALA, Fresdehl, Uhversly
o Mam; Former Uhled 8lales 8ecrelary
o Healh ahd Humah 8ervces
DAVlD BEAUMONT 8MlTH, Execulve Dreclor,
Naloha Coherehce oh Clzehshp
LE8LEY 8TAHL, Correspohdehl, 60 Minutes
FAUL VOLCKER, Charmah, Ecohomc Recovery Advsory
Board; Former Charmah o lhe Federa Reserve
DAVlD M. WALKER, Fresdehl ahd CEO,
Comeback Amerca lhlalve
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D. RONALD DANlEL, (Charmah), 8ehor Farlher Emerlus,
McKhsey & Compahy
8TEFHEN ROBERT, Charmah ahd CoCEO, 8ource o Hope
Fouhdaloh
FETER C. FETER8ON
MlCHAEL A. FETER8ON
MlCHAEL C. MANA88E, COO, Felersoh Mahagemehl, LLC
FOUNDATlON LEADER8HlF AND ADVl8ORY BOARD
MAlLlNC ADDRE88
The Feler C. Felersoh Fouhdaloh
888C Eghlh Avehue
Box =144
New York, NY 10019
CRANT lNUlRlE8
hqures@pgp.org
MEDlA lNUlRlE8
press@pgp.org
CENERAL COMMENT8 OR UE8TlON8
commehls@pgp.org
FHOTO CREDlT8 & ACKNOWLEDCEMENT8
Fage 33: lmages rom lhe mlvU lhdebled Campagh used
wlh permssoh o mlvU. 2009 MTV Nelworks. A Rghls
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