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12.

15.

Another accounting option being rumored to be on the table is moving Pell

Grants to mandatory spending, as opposed to discretionary, which would

open up roughly $40 billion in additional room under the spending caps.

7 For a full list of options are their savings estimates see the Congressional Budget Office’s “Reducing the Deficit Spending and Revenue Options, March 2011 <http://cbo.gov/doc.cfm?index=12085>8 See: Green Scissors: Cutting Wasteful and Environmentally Harmful Spending < http://www.foe.org/sites/default/files/Green_Scissors_2011.pdf>9 See: Rep. H. Waxman and S. Levin, Dear Colleague letter in connection with H.R. 2190

Revenues

Raise basic tax rate on capital gains by 2 pct. points in 2013

Use chained instead of standard inflation to index tax code

Gradually eliminate the Mortgage Interest Deduction

Eliminate Child Tax Credit

Eliminate select energy subsidies8

Increase taxable earnings for Social Security

Manufacture rebates to Medicare Part D9

OPTIONS7 DEFICIT REDUCTION OVER 10 YEARS (Billions of Dollars)

Mandatory Spending

Block grant long-term care services in Medicaid

Raise Medicare eligibility age to 67

Increase Medicare Part B premium

Raise the earliest eligibility age for Social Security

Discretionary Spending

Freeze Department of Defense funding at 2011 levels

Freeze funding for all other agencies at 2011 levels

Reduce annual adjustment for federal civilian pay by .5 pct. points per year

$287.4$124.8$241.2$143.9

$48.5$71.8$214.6$116.7$380.0$456.7$120.0

$610.7$642.0

$50.2

17.

n What are the possible outcomes?

1. Success: The committee and Congress reach a bargain and agree

to $1.2 trillion in cuts.

2. Failure: If the committee and full Congress cannot agree on at least

$1.2 trillion in deficit reductions, then automatic $1.2 trillion in cuts

equally divided between defense and discretionary spending would

take effect in 2013. The enforcement mechanism protects Social

Security, Medicaid, Medicare beneficiaries, unemployment insurance,

programs for low-income families and civilian and military retirement

from any cuts.

3. Some Success: Lawmakers could agree on a deal that makes

significant cuts but falls short of the super committee’s $1.2 trillion

goal. If that’s the case, then the trigger would come into play, but

it would apply to the difference between $1.2 trillion and whatever

agreement the committee was able to reach.

hmmm.......?

20.

n Notes:

Jim's Take: "The question is can the intense pressure of public opinion, the

sense of playing for history, the grim math of automatic cuts,

forge some statesmanship and induce twelve individuals to

behave more independently and courageously than 535 individuals? The answer is, I think, just maybe.

The Senate Democrats, while holding fast for core principles,

will be looking for a reasonable deal to stave off the meat

cleaver of automatic rescissions. The Republicans it seems to me

will have to rely on Toomeyand Portman to rise to the

occasion if the Committee isto fulfill its mandate."

JIM JORDAN

Jim began his career in politics that year as the Communications Director for then-Congressman Tim Johnson in his successful run against incumbent South Dakota Senator Larry Pressler.

After moving to Washington, Jordan worked as Communications Director for Senators Robert Torricelli and John Kerry. He managed strategy and communications for Chairman John Glenn and Minority Leader Tom Daschle for the Democrats on the Senate Government Affairs Committee. Similarly, he was retained by House Minority Leader Dick Gephardt to advise Judiciary Committee Democrats during the 1998 Impeachment hearings.

Over the next two election cycles, Jordan served as Communications Director, Political Director, and finally as Executive Director of the Democratic Senatorial Campaign Committee.

Jordan managed John Kerry’s political operation for more than five years, including the strategic planning during the run up to his 2004 presidential run. That culminated in Jordan’s service as Kerry’s Campaign Manager until November of 2003.

Upon his departure from the Kerry campaign, Jordan founded his own strategic and communications shop, The Thunder Road Group. He has advised Democratic candidates at the House, Senate, gubernatorial and local levels. He has also had as clients a variety of independent political efforts (527s, c-3 and 4 organizations, party committees, and independent expenditure programs), progressive interest groups, professional trade organizations, and corporations.

21.

"The Committee has been given a unique and powerful mandate. My sense is that the Members on the committee feel that they have a national obligation to find a way to create a bill that can get to the President's desk on time. The challenge for the committee will be to deliver austerity legislation during the Christmas season that demonstrates they are serious about stabilizing our debt and kick starting our economy. This means that the legislation will have to be balanced between good policy and good politics for both parties."

ROB COLLINS

Prior to joining Purple, Rob ran the American Action Network. The Network under

Collins’s leadership raised over $30 million for advocacy in 5 Senate races and 35 House Districts building multi-platform advocacy

campaigns that included grassroots, TV, radio, new media, social media and voter mobilization.

In addition, Collins created the successful Hispanic Leadership Network co-chaired by

Gov. Jeb Bush and Secretary Carols Gutierrez.

Before starting the Network, Collins was Chief of Staff for Majority Leader Eric Cantor, worked

on over 14 campaigns including work with Senator John Thune, the NRSC, Senator Chuck

Hagel, The RNC, NY RACC, Congressman David McIntosh and Congressman Frank Riggs.

Collins has been named to three consecutive Roll Call’s “Fab 50” list and twice to The Hill’s

“35 Staffers to Watch Under 35.” In May of 2011 was named to Washington Life’s “Power 100

in Washington, D.C.” In July 2011, Collins joined the Board of Directors for American

Crossroads GPS, a center-right policy and grassroots advocacy organization.

Rob's TaKe:

22.

Steve's Take: "I think the winners in thebudget wars won't be thosewho rely solely on working the 'smoke filed rooms,' but those who figure out how to make the decisions being made by theSuper Committee important to the voters. In this toughpolitical year, it is moreimportant than ever to build relevant, broad-based advocacy. Budget battles like these have now become the 'new normal." There are many more to come. The winners will be thosewho make good policy apolitical imperative."

Steve McMahon is an attorney and co-founder of Purple Strategies, LLC. He got his start in

politics on the Senate and political staff of Senator Edward M. Kennedy, and has worked on

dozens of Senate, Gubernatorial and Mayoral campaigns across the country.

McMahon has served in senior roles in three presidential campaigns, and produced the

advertising in support of then Senator Barack Obama for the Democratic National Committee

in the 2008 presidential campaign.

For the past twelve years, McMahon’s principal focus has been on providing comprehensive

reputation, brand image, crisis management and issue advocacy campaigns to companies and

industries operating in challenging environments. He and his colleagues have also handled numerous

initiative and referendum campaigns on a wide range of subjects, and helped develop litigation communication strategies for major companies

facing significant litigation threats.

Steve McMahon appears regularly as a political commentator on MSNBC’s Hardball with Chris

Matthews and Andrea Mitchell Reports. During the past three campaign seasons, McMahon was a frequent commentator on the NBC Evening News, ABC World News Tonight, The Today Show, CNN, and FOX NEWS. McMahon is married to Cynthia Alksne, a former federal prosecutor and MSNBC

legal analyst. The couple has four daughters.

STEVE MCMAHON

23.

With more than two decades of political and private sector consulting experience in the US and around the globe, Alex has developed communications strategies and campaigns for Fortune 100 Companies, served as media consultant to five U.S. presidential campaigns, helped elect eight U.S. senators and six governors.

Fortune Magazine singled out Castellanos as a “new-style media master.” In 2007, GQ Magazine called Castellanos one of the 50 Most Influential People in D.C. Castellanos brings a wealth of campaign strategy, public opinion research and communications experience to corporate and public policy campaigns. He is a member of CNN’s “Best Political Team on Television”.

A native of Havana, Cuba, Castellanos is fluent in Spanish and English. His parents, refugees who fled Castro’s Cuba in 1961, came to this country with one suitcase, two children and eleven dollars. A Morehead and National Merit Scholar at the University of North Carolina, Castellanos has lectured domestically and internationally, with venues ranging from Harvard University to the United States Army Communication School.

ALEX CASTELLANOS

Alex's Take: "The nation is waitingto see if reasonable mindscan find common ground. For some this is an accounting issue to balance our budget. However, for partisans on both sides of the aisle there is no middle, just right and wrong. They see this as a debate about the role of government and what kind of country we are going to be. Both sides will not want to give and both will take, but in the end the Leadership and the Super Committee Members are going to have to hold hands and jump to find a solution."

24.

"My home state ofSouth Carolina has produced some of the toughest budget cutters in Congress thepast few years. They willbe a critical early indictorof the Super Committee's work, and gauge of whatthe 'tea party' Republicans can support. Ultimatelyprogress will go through or around this critical block,depending on which tackthe Leadership and theSuper Committee takes."

BRUCE HAYNES

Bruce has over 15 years experience in political and public affairs campaigns, specializing in industry image and corporate reputation advertising. An expert in strategy and message development, Haynes has most recently directed message and advertising efforts to manage the corporate image of a leading pharmaceutical company, and crafted a several hundred million dollar campaign on behalf of a major cable network in a dispute with a cable programmer.

Previously, Haynes private sector work has included leading efforts to successfully reposition large trade associations, manage positive legislative outcomes in issue areas such as telecommunications, energy, legal reform and health care, including overseeing the paid media effort for Citizens for Better Medicare, the largest issue advocacy campaign of its kind.

On the political front, Haynes has advised large federal government agencies on public affairs campaigns, served as media consultant to the Republican National Committee’s 2008 US Presidential independent expenditure campaign and, prior to joining Purple, he served as Chief-of-Staff to South Carolina Congressman Bob Inglis and as staff counsel to two-term South Carolina Governor Carroll Campbell.

Bruce's Take:

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