Ripon Forum - September 2018

JACKIE WALORSKI’S STRAIGHT TALK ON TARIFFS:

“I am concerned about the long-term impact on American businesses and workers.”

September 2018 Volume 52, No. 4

THE

NEW

OFFENSIVE

Cybersecurity Chairman Mike Rounds leads the effort to take the fight to the enemy on the digital battlefield.

Plus: The cyber threats facing America, how the military is meeting these threats, and why the federal government remains understaffed & unprepared.

And: Remembering a giant, the late John McCain.

www.riponsociety.org

$6.95 U.S./$7.95 Canada

Investing in Infrastructure Means Investing in America 1 in 6 jobs in America is related to retail real estate 90.1% of sales are generated by retailers with physical establishments

Safe and efficient infrastructure is critical to the retail real estate industry and the communities we serve. Roads and transit get consumers and workers to our properties and products to our stores.

ICSC is proud to support the Ripon Society. www.icsc.org | #ICSC

“Ideas that matter, since 1965.“ Volume 52, Number 4 In Memoriam

Cover Story (cont’d)

4 The Enduring Peace

A Q&A with John McCain

To mark the passing of the Arizona Senator, the Forum is republishing the interview it

did with him as he accepted his party’s

nomination for President in 2008.

18

Closing the Federal Cyber Workforce Gap

By Max Stier A recent OMB report highlighted the fact that three quarters of federal agencies lack the capability “to effectively detect data exfiltration attempts and respond to cybersecurity incidents.”

20

Paper Ballots & Election Security

By Philip Stupak Eliminating the human element from filling out paper ballots is as essential to election security as ensuring election machines produce a voter verifiable paper ballot.

Cover Story 8

The New Offensive

By Mike Rounds America has played defense long enough when it comes to cybersecurity. In the face of an increasing multitude of threats, it is time to go on offense.

10

Elevating Cyber Command: An Overdue Step Towards Enhancing Military Cyber Operations

By Thomas Spoehr & James Di Pane The elevation of CYBERCOM earlier this year is a move whose time has definitely come. In fact, the only possible criticism could be: “What took you so long?”

12

The Magnitude of the Cyber Threat Facing America

By Frank Cilluffo With an estimated 40 billion new devices expected to be interconnected by 2020, the American people -- and the U.S. economy -- are more vulnerable than ever before to a cyber attack.

16

Defending the Grid

By Tom Kuhn With cyber threats continuing to grow and evolve, the public & private sector are working together to protect America’s supply of electric power.

Publisher The Ripon Society President Jim Conzelman Editorial Board Thomas Tauke Michael Castle Billy Pitts Pamela Sederholm Judy Van Rest Jim Murtha John Feehery

Editor Lou Zickar Editorial Assistant Kyle Chance Advertising Coordinator Asher Kaithern Editorial Interns Olivia Fryman William Clutterbuck © Copyright 2018

By The Ripon Society All Rights Reserved

22 Safeguarding the Mid-Terms

By Kyle Chance

There’s a mixed bag of actions being taken by

election officials in states across the country in

order to mitigate the infiltration of election

systems during the 2018 mid-terms.

Politics & Perspective 26

29

Troubling Trends in the Federal Budget

By Robert Bixby A Failure on 9/11, and a Lesson Finally Learned

By Charles Werner

Sections 3 32 36

In this Edition News & Events Ripon Profile - U.S. Rep. Jackie Walorski

One Year Subscription: $40.00 individuals $15.00 students The Ripon Forum (ISSN 0035-5526) is published by The Ripon Society. The Ripon Society is located at 1155 15th Street, NW, Suite 550, Washington, DC 20005.

Postmaster, send address changes to: The Ripon Forum, 1155 15th Street, NW, Suite 550, Washington, DC 20005.

RIPON FORUM September 2018

Comments, opinion editorials and letters should be addressed to: The Ripon Forum, 1155 15th Street, NW, Suite 550, Washington, DC 20005 or may be transmitted electronically to: louzickar@riponsociety.org.

In publishing this magazine, The Ripon Society seeks to provide a forum for fresh ideas, well-researched proposals, and for a spirit of criticism, innovation, and independent thinking within the Republican Party.

The Wine & Spirits Wholesalers of America’s 380 members distribute 80% of all wines and spirits sold at wholesale in the U.S. and make significant contributions to America’s economy.

American family-owned wholesalers are proud to support The Ripon Society mission: keeping

our nation secure, keeping taxes low and having a federal government that is smarter and more accountable to the people. learn more at wswa.org

THE RIPON SOCIETY HONORARY CONGRESSIONAL ADVISORY BOARD U.S. Senators: Shelley Moore Capito - Senate Co-Chair Cory Gardner - Senate Co-Chair Roy Blunt Richard Burr Bill Cassidy, M.D. Susan M. Collins Steve Daines Joni Ernst Deb Fischer Orrin G. Hatch John Hoeven Jerry Moran Pat Roberts Mike Rounds Thom Tillis Roger Wicker Todd Young U.S. Representatives: Susan W. Brooks - House Chair Martha Roby - Vice Chair, South Erik Paulsen - Vice Chair, Midwest Bill Shuster - Vice Chair, Northeast Greg Walden - Vice Chair, West Mark Amodei Don Bacon Andy Barr Mike Bishop Diane Black Marsha Blackburn Vern Buchanan Larry Bucshon, M.D. Michael C. Burgess, M.D. Ken Calvert Tom Cole Barbara Comstock Ryan Costello Carlos Curbelo Rodney Davis Jeff Denham Charlie Dent Dan Donovan Sean Duffy Tom Emmer Bill Flores Rodney Frelinghuysen Kay Granger Sam Graves French Hill Bill Huizenga Randy Hultgren Darrell Issa Evan Jenkins Lynn Jenkins Dave Joyce John Katko Mike Kelly Adam Kinzinger Darin LaHood Leonard Lance Billy Long Frank Lucas Tom MacArthur Tom Marino Kevin McCarthy Michael McCaul Cathy McMorris Rodgers John Moolenaar Kristi Noem Bruce Poliquin John Ratcliffe Tom Reed Jim Renacci Tom Rice Tom Rooney Peter Roskam Steve Scalise John Shimkus Lamar Smith Steve Stivers Glenn Thompson Mac Thornberry Mike Turner Fred Upton Jackie Walorski Mimi Walters Brad Wenstrup Steve Womack

In this Edition

In April of 2000, Gallup conducted a poll in which they asked people a simple question: “How worried are you that you or someone in your family will become a victim of terrorism -- very worried, somewhat worried, not too worried or not worried at all?”

Despite the fact that the U.S. Embassy in Africa had been attacked by terrorists two years earlier and that the first bombing of the World Trade Center had occurred in 1993, only 24% said they were either very worried of somewhat worried that they, too, would be a victim of terror.

Then 9/11 happened, and, obviously, all of that changed. Americans woke up to the nature of the threat we faced, and when Gallup asked that same question shortly after the September 11th attacks, nearly 60% of the public said they were worried that they or a family member would be a victim of terrorism, too.

Seventeen years later, Americans remain concerned about terrorism -- but not just any kind of terrorism. When asked by Gallup earlier this year to list the greatest threat to the vital interests of the United States over the next 10 years, an overwhelming 81% pointed to cyberterrorism. It’s easy to understand why. From online identify theft to Russian interference in the 2016 election, Americans are increasingly finding themselves in the cyber cross-hairs.

In the face of this escalating threat, the latest edition of The Ripon Forum examines the effort underway to strengthen our defenses and make sure that a “Cyber 9/11” never occurs. The effort is being led by individuals like Senator Mike Rounds. Rounds serves as Chairman of the Armed Services Subcommittee on Cybersecurity. In this position, he is one of a growing number of defense leaders who say that the United States can no longer afford to take a reactive approach in the face of emerging cyber threats. “Now, more than ever,” Rounds writes, “our national defense strategy must include protecting our Armed Forces and civilian infrastructure from cyber-attacks by highly-capable adversaries … We have played defense long enough when it comes to cybersecurity. It is time to go on offense.”

Going on offense is one of the reasons why the President decided to elevate U.S. Cyber Command to a unified command status this past summer. Thomas Spoehr and James Di Pane of the Heritage Foundation assess this decision in our latest edition. “As a Unified Combatant Command,” the pair writes, “CYBERCOM’s effectiveness will be enhanced by the ability to work directly with the other combatant commands, and by its commander’s authority to report directly to the Secretary of Defense ... this will enhance the amount of impact Cyber Command will wield inside and outside of the Pentagon, which is needed in this critically important area.”

According to Frank Cilluffo, who directs the McCray Institute for Cybersecurity at Auburn, steps like these could not happen soon enough. “Our ability to ‘network’ has far outpaced our ability to protect ‘networks’,” Cilluffo writes. “Just think about the Internet of Things, with an estimated 40 billion new devices expected to be interconnected by 2020.” Cilluffo also quotes Homeland Security Secretary Kirstjen Nielsen, who issued this blunt warning earlier this year: “We are in crisis mode. A ‘Cat 5’ hurricane has been forecast, and now we must prepare.’”

Tom Kuhn of the Edison Electric Institute agrees. In an op-ed, he lays out how his industry is working with the public sector to defend America’s energy grid. In another op-ed for this latest edition, Max Stier of the Partnership for Public Service discusses the fact that the federal workforce is currently plagued by a shortage of cyber professionals. With the mid-terms around the corner, election expert Philip Stupak shares his thoughts on “Paper Ballots & Election Security,” while Forum Associate Editor Kyle Chance explores what the states are – and are not – doing to keep the mid-terms secure.

In two other important essays, Bob Bixby of the Concord Coalition examines “Troubling Trends in the Federal Budget,” and former Charlottesville Fire Chief Charles Werner writes about, “A Failure on 9/11, and a Lesson Finally Learned.” And in our latest Ripon Profile, Indiana Congresswoman Jackie Walorski discusses the importance of manufacturers in her District, and how tariffs will impact their work.

Finally, America lost a giant last month with the passing of John McCain. As a small tribute to his life, we republish his 2008 interview with the Forum that not only remains remarkably relevant, but reminds us all of why this hero, maverick, and patriot will be missed.

As always, we hope you enjoy this edition of the Forum, and encourage you to contact us with any questions or comments you might have.

Lou Zickar, Editor louzickar@riponsociety.org RIPON FORUM September 2018

3

In Memoriam

4

RIPON FORUM September 2018

An Enduring Peace A Q&A with John McCain (originally published in August 2008) Over the course of a career in public service that took him from the U.S. Navy to the United States Senate, John McCain made a name for himself as a leader of men and as a maverick – someone who is willing to take an unpopular position because he believes it to be the right thing to do. But he also established himself as an expert in the areas of national security and foreign affairs.

As he prepared to formally accept the Republican nomination for President of the United States 10 years ago this past summer, The Ripon Forum asked Senator McCain for his views on America’s place in the world, the challenges we face in Iraq and elsewhere abroad, and how the United States can achieve what he called, “an enduring peace.”

To mark his passing on August 25 th, the Forum has decided to republish the interview as a small tribute to his life, his many accomplishments, and his lifetime of service to our nation and the world.

RF: What are the broad principles that would future. Undoubtedly, the United States must lead in guide foreign policy in a McCain Administration? the 21st century, though unlike in the years after World JM: I am an idealist, and I believe it is possible in War II, today we are not alone. There is the powerful our time to make the world we live in a better, more collective voice of the European Union, and there are peaceful place, where our interests and those of our the great nations of India and Japan, Australia and allies are more secure, and the American ideals that Brazil, South Korea and South Africa, Turkey and Israel, to name just a few of the are transforming the world — leading democracies. There are the principles of free people and also the increasingly powerful free markets — advance even “I am, from hard nations of China and Russia farther. But I am, from hard that wield great influence in the experience and the experience and the judgment it international system. informs, a realistic idealist. I judgement it informs, know we must work very hard a realistic idealist.”

RF: What is the greatest and very creatively to build threat facing America today? new foundations for a stable JM: The transcendent and enduring peace. We cannot challenge of our time is the threat of radical Islamic simply wish the world to be a better place than it is.

We face a new set of opportunities, and also new terrorism. Though there are many dangers in today’s dangers. The developments of science and technology world, the threat posed by the terrorists is unique. They have brought us untold prosperity, eradicated disease, alone devote all their energies and indeed their very and reduced the suffering of millions. We have a chance lives to murdering innocent men, women, and children. in our lifetime to raise the world to a new standard They alone seek nuclear weapons and other tools of mass of human existence. Yet these same technologies destruction, not to defend themselves or to enhance their have produced grave new risks, arming a few zealots prestige or to give them a stronger hand in world affairs, with the ability to murder millions of innocents, and but to use against us wherever and whenever they can.

Any president who does not regard this threat as producing a global industrialization that, in time, can transcending all others does not deserve to sit in the threaten our planet.

To meet this challenge requires understanding White House, for he or she does not take seriously the world in which we live, and the central role enough the first and most basic duty a president has — the United States must play in shaping it for the to protect the lives of the American people.

RIPON FORUM September 2018

5

RF: What is the appropriate role of the RF: Do you believe trade plays a role in our United States in promoting democracy abroad? national security?

JM: The United States cannot lead by virtue JM: Yes. Free trade plays a huge role in American of its power alone. We must be strong politically, competitiveness and jobs, and without it, a weak economically, and militarily. But we must also lead economy would undermine our ability to deal with by attracting others to our cause, by demonstrating threats to our national security. Ninety-five percent of once again the virtues of freedom and democracy, by the world’s consumers live outside the U.S. Our future defending the rules of international civilized society prosperity, and in turn our national security, depends and by creating the new international institutions on opening more of these markets, not closing them. necessary to advance the peace and freedoms we America is the biggest exporter, importer, producer, cherish. Perhaps above all, leadership in today’s world saver, investor, manufacturer, and innovator in the means accepting and fulfilling our responsibilities as a world. Americans don’t run from the challenge of a great nation. global economy. That’s One of those why I reject the false responsibilities is to be a virtues of economic good and reliable ally to isolationism.

Any our fellow democracies. confident, competent We cannot build an government should enduring peace based on embrace competition freedom by ourselves, — it makes us stronger and we do not want — not hide from to. We have to strengthen our competitors and our global alliances as cheat our consumers the core of a new global and workers. We can compact — a League compete and win, as we of Democracies — that always have, or we can can harness the vast be left behind. influence of the more than 100 democratic RF: The surge nations around the world has clearly helped to advance our values increase stability in and defend our shared Iraq. What is your “Leadership in today’s world interests. definition of victory means accepting and fulfilling our that would allow our RF: What role will troops to come home? responsibilities as a great nation. public diplomacy How will achieving One of those responsibilities is to play in a McCain that victory help be a good and reliable ally to our Administration? make Americans JM: Our great more secure? fellow democracies.” power does not mean JM: The surge has we should do whatever succeeded. That is why we want whenever we the additional surge want, nor should we assume we have all the wisdom brigades are almost all home. We can and will win and knowledge necessary to succeed. We need to in Iraq. I’m confident we will be able to reduce our listen to the views and respect the collective will of forces in Iraq next year, and our forces will be out of our democratic allies. When we believe international regular combat operations and dramatically reduced in action is necessary, whether military, economic, or number during the term of the next President. We have diplomatic, we will try to persuade our friends that fought the worst battles, survived the toughest threats, we are right. But we, in return, must be willing to be and the hardest part of this war is behind us. But it is persuaded by them. not over yet. And we have come too far, sacrificed too We will not engage in unconditional dialogues with much, to risk everything we have gained and all we dictatorships such as Syria and Iran, however. Instead, could yet gain because the politics of the hour make we will work with the international community to defeat the more convenient position. apply real pressure to induce such states to change If we withdraw prematurely from Iraq, al Qaeda their behavior. in Iraq will survive, proclaim victory and continue 6

RIPON FORUM September 2018

to provoke sectarian tensions that, while they have been subdued by the success of the surge, still exist, as various factions of Sunni and Shi’a have yet to move beyond their ancient hatreds, and are ripe for provocation by al Qaeda. Civil war in Iraq could easily descend into genocide, and destabilize the entire region as neighboring powers come to the aid of their favored factions. I believe a reckless and premature withdrawal would be a terrible defeat for our security interests and our values. Iran will also view our premature withdrawal as a victory, and the biggest state supporter of terrorists, a country with nuclear ambitions and a stated desire to destroy the State of Israel, will see its influence in the Middle East grow significantly.

These consequences of our defeat would threaten us for years, and those who argue for it are arguing for a course that would eventually draw us into a wider and more difficult war that would entail far greater dangers and sacrifices than we have suffered to date.

whose unwavering, determined approach to foreign policy helped bring about the end of the Cold War. President Reagan had remarkable confidence that a new age of freedom was upon us, when the rights of man would be ascendant in many of the darkest reaches of tyranny.

Ronald Reagan was a proud Cold Warrior; proud to be an enemy of the forces he justly denounced as evil. But being an anti-Communist was never enough for him. He knew that America’s efforts to help humanity secure the blessings of liberty are what truly distinguish us from all other nations on earth. He knew it was necessary to defeat communism to protect ourselves. But he also fought communism because it threatened America’s sublime legacy to the world.

I also admire Theodore Roosevelt for his staunch commitment to conservationism. He was America’s foremost conservation president and rallied Americans behind unprecedented efforts to save our wild landscapes, important watersheds, and migratory bird corridors.

“Americans don’t run In my home state of Arizona, from the challenge of a Mo Udall and Barry Goldwater global economy. That’s taught me to believe that we are Americans first and partisans why I reject the false second, and I want to be a virtues of economic President that honors their faith in us. isolationism.”

RF: Are you concerned that the U.S. has become so focused on the war on terror that we have lost sight of other growing powers such as China?

JM: Dealing with a rising China will be a central challenge for the next American president.

Recent prosperity in China has brought more people out of poverty faster than during any other time in human history. China’s newfound power implies responsibilities. China could bolster its claim that it is “peacefully rising” by being more transparent about its significant military buildup, by working with the world to isolate pariah states such as Burma, Sudan and Zimbabwe, and by ceasing its efforts to establish regional forums and economic arrangements designed to exclude America from Asia.

China and the United States are not destined to be adversaries. We have numerous overlapping interests and hope to see our relationship evolve in a manner that benefits both countries and, in turn, the AsiaPacific region and the world. But until China moves toward political liberalization, our relationship will be based on periodically shared interests rather than the bedrock of shared values.

RF: Who are your role models when it comes to U.S. foreign policy? What past Presidents do you look up to? What other officials do you admire?

JM: I have the utmost respect for Ronald Reagan,

RF: Finally, do you think the federal government is effectively structured to meet the global security challenges we face as a Nation? If not, what changes and reforms would you propose?

JM: I will work aggressively to reform the defense budgeting process to ensure that America enjoys the best military at the best cost. This includes reforming defense procurement to ensure the faithful and efficient expenditure of taxpayer dollars that are made available for defense acquisition. Too often, parochial interests — rather than the national interest — have guided our spending decisions. I support significant reform in our defense acquisition process to ensure that dollars spent actually contribute to U.S. security.

While spending reform has been necessary, I have been a tireless advocate of our military and ensuring that our forces are properly postured, funded, and ready to meet the nation’s obligations both at home and abroad. I have fought to modernize our forces, to ensure that America maintains and expands its technological edge against any potential adversary, and to see that our forces are capable and ready to undertake the variety of missions necessary to meet national security objectives.

RF

RIPON FORUM September 2018

7

Cover Story

THE

NEW

OFFENSIVE

by MIKE ROUNDS

The main responsibility of the federal government is the defense of our nation. Today, that responsibility entails the need to protect our nation against emerging threats, one of the most significant of which is in the cyber domain.

Now, more than ever, our national defense strategy must include protecting our Armed Forces and civilian infrastructure from cyber-attacks by highly-capable adversaries. If the federal government fails to fulfill this requirement, the United States could suffer military defeat, long-lasting widespread destruction and extensive loss of life.

8

When Al-Qaeda terrorists attacked our country 17 years ago on September 11th, they used commercial airplanes as their weapons. These days, our adversaries have the ability to wreak havoc from thousands of miles away, with a computer as their weapon. Take the 2016 election. While ultimately unsuccessful, we know that Russia attempted to get into at least 20 of our state election systems.

That was part of their ongoing effort to discredit the integrity of our free and fair elections, coupled with disinformation and fake advertising on popular

RIPON FORUM September 2018

sites such as Facebook and Twitter. Their goal is to create laudable goal of implementing a whole-of-government chaos and distrust in our system of government. So far, approach to cyber operations, PPD20 rendered the they have been unsuccessful, but they and potentially conduct of offensive cyber operations hostage to a other adversaries will continue trying to impact our consensus-based interagency process that almost elections as well as other democratic elections around completely negated our nation’s ability to conduct such the world. This is why we need a clear plan to defend operations. More specifically, this process has precluded and retaliate against cyber attackers and ultimately deter U.S. Cyber Command from swiftly and preemptively them from attacking us in the first place. thwarting an imminent cyber-attack based upon near real Both Russia and China are near-peer competitors. time intelligence. This makes news reports that the Trump Other countries with much less military power could also Administration has decided to reconsider PPD 20 very cause damage with little effort, even though their military encouraging. We have played defense long enough when technology and resources may be limited. Iran, as an it comes to cybersecurity. It is time to go on offense. example, can’t compete with us on the battlefield, yet it We also have to make it more expensive to successfully could attack our electric grid or banking system. In so attack us by improved cyber defenses. doing, a hostile actor could use cyber-attacks to level While the work of the Cybersecurity Subcommittee the battlefield and impact our military advantage born is focused on the Defense Department, we continue work of expensive technology. In other words, the superior with our colleagues on and off the Senate Armed Services weapons we have acquired over several generations to Committee to oversee the administration’s inter-agency dominate the land, sea and air domains are at risk. More plans, programs and policies for the purpose of protecting specifically, because we rely on cyber technology to critical national infrastructure, most of which is in the operate our weapon systems such as aircraft, ships and private sector. A cyber-attack on our critical national military infrastructure, a infrastructure – such as our cyber-attack could diminish electric grid, transportation these traditional tools of war. system and financial system We have played defense As a member of the Senate – could lead to devastating, long enough when it comes to Armed Services Committee possibly irreversible damage (SASC) and Chairman as well as tremendous loss cybersecurity. It is time to of the Subcommittee on of life and suffering by the go on offense.

Cybersecurity, I, along with American people. my colleagues, have over the Out of concern that we past 20 months conducted lacked a clearly articulated cyber-related oversight of the Defense Department, with strategy to deter such attacks, I introduced the Cyber Act an eye toward a robust combat-ready Cyber Mission of War Act two years ago to require the Administration Force as well as a strategy and policies that enable that to develop a policy to determine when a cyber-attack force to respond rapidly and effectively. Maximizing the constitutes on act of war. A version of this provision readiness of this force has been a particular area of focus was signed into law as part of the National Defense for the subcommittee.

Authorization Act for Fiscal Year 2017. Unfortunately, The readiness of the Cyber Mission Force must be the Administration has yet to fulfill this statutory considered in the context of the cyber threat. Cyber- requirement. attacks on the United States present an attractive option The U.S. Armed Forces and its men and women for our adversaries, because they can attack us in cyber- who wear the uniform remain the greatest in the world space without necessarily provoking a kinetic response and have repeatedly demonstrated dominance in the by highly capable and for the most part superior U.S. traditional military domains of land, sea and air. We “conventional” military means. Additionally, the must now expand our military dominance to include the Defense Science Board has stated that for the next 10 cyber domain. Preeminence in the cyber domain is vital years, the United States will not be able to defend its to succeed in the other domains -- air, land and sea -- as critical assets from a cyber-attack by our most advanced well as to protect our homeland. adversaries. This underscores the need for a strong cyber We have a great deal of work ahead, but I am deterrent strategy to convince our adversaries that they confident that we will succeed thanks to the outstanding will pay a significant price if they attack us in cyber-space Americans who serve our country in and out of just as they would if they attacked us with kinetic means. uniform.

RF Although the United States has a formidable cyber capability to deter adversaries, employment of that Mike Rounds represents South Dakota in the United capability has been hamstrung for years by Presidential States Senate. He serves as Chairman of the Armed Policy Directive 20 (PPD 20). Though based upon the Services Subcommittee on Cybersecurity.

RIPON FORUM September 2018

9

Elevating Cyber Command: An Overdue Step towards Enhancing Military Cyber Operations

by THOMAS SPOEHR & JAMES DI PANE Adversaries such as China, Russia, Iran, North Korea, A ceremony in May marked the elevation of U.S. Cyber Command from a Sub-Unified Combatant Command to and some non-state actors have increasingly advanced cyber a Unified Combatant Command, a move that will help capabilities that can target the U.S., and the challenging nature the military conduct cyber operations. It joined Central of the domain, coupled with the wide range of operations and Command, Indo Pacific Command and Strategic Command targets involved, makes this a critical part of the new military and others as one of 10 Unified Combatant Commands in landscape.

As technology and our the Department of Defense. understanding of the implications of It’s a move whose time had cyber warfare have evolved, so too definitely come. In fact, the has the United States’ organization only possible criticism could be: to handle military cyber operations.

“What took you so long?”

In 1998, the same year that At the ceremony marking Apple launched the iMac, Joint Task the change, the new commander Force-Computer Network Defense of CYBERCOM, Army General (JTF-CND), an early predecessor Paul Nakasone, described to CYBERCOM, was activated CYBERCOM as “responsible for under the Defense Information the planning and execution of the Systems Agency (DISA) to address cyberspace missions … to secure the early security concerns around our nation’s freedom of action in DoD networks. In 2002, it was cyberspace and to help mitigate moved to U.S. Strategic Command risks to our national security (STRATCOM). resulting from America’s growing As the importance of cyber dependence on cyberspace.” operations grew, in 2009 DoD “Our team has both the stood up U.S. Cyber Command challenge and, more importantly, CYBERCOM’s as a sub-unified command under the opportunity to build a effectiveness will be STRATCOM. But Cyber always combatant command from the seemed the “odd man out” in a ground up,” Nakasone said. enhanced by the ability to command focused on nuclear According to Deputy Defense work directly with the other deterrence and strategic strike.

Secretary Patrick Shanahan, the Sub-unified commands are change is “an acknowledgement combatant commands, and created to conduct a portion of the that this new warfighting domain by its commander’s authormission assigned to their parent has come of age.” ity to report directly to the unified command. But the rapidly Cyber is a domain of warfare growing cyber threat and its with a unique set of challenges. secretary of defense. implications appeared to eclipse the Attribution is difficult, distance responsibilities of STRATCOM. is irrelevant, and even small actors can have outsized impact. Given the modern Almost from the time it was created, CYBERCOM cast a reliance on networks for all facets of society, from power shadow greater than a typical sub-unified command, such as grids to communications networks to individual smart Alaska Command (under Northern Command) or U.S. Forces phones, the possibilities of a cyber-attack are broad, Korea (under Indo Pacific Command).

To their credit, successive STRATCOM and CYBERCOM varying from minimal to catastrophic. Some have gone so far as to claim cyberwar will define conflict in the commanders made the relationship work, but despite their efforts, the subordinate nature of a sub-unified command served next century.

10

RIPON FORUM September 2018

to diminish in stature and importance the critical mission of the command. Cyber-attacks in Georgia in 2009, South Korea in 2009, and the attack on Sony Pictures in 2014 all highlighted the increasing vulnerabilities and potential of cyber warfare.

As a Unified Combatant Command, CYBERCOM’s effectiveness will be enhanced by the ability to work directly with the other combatant commands, and by its commander’s authority to report directly to the secretary of defense. It also means better synchronization of training and operations, as the commander of CYBERCOM was given responsibility to be the joint force trainer for cyber. All of this will enhance the amount of impact Cyber Command will wield inside and outside of the Pentagon, which is needed in this critically important area.

Special Operations Command’s elevation to Unified Command in 1987, and the benefits that this change conveyed, amply illustrates this point. Better training, acquisition speed and coordination of efforts led to SOCOM’s unequaled ability to wage the global war on terror in a fastpaced environment of near constant operations. The Cyber force can now enjoy these advantages as well.

Marking the elevation of CYBERCOM to a unified command, President Trump noted in a White House announcement that “United States Cyber Command’s

elevation will also help streamline command and control of time-sensitive cyberspace operations by consolidating them under a single commander with authorities commensurate with the importance of such operations. Elevation will also ensure that critical cyberspace operations are adequately funded.”

Thus the elevation of CYBERCOM is unquestionably positive and the reorganization overdue given the importance of cyber in modern warfare and the need to address threats in cyber space, both here and in combat theaters abroad.

However, this is not a quick fix to the challenges and threats we face in the cyber domain. Much work remains to be done as the nation continues to grapple with this new challenge institutionally.

CYBERCOM’s elevation is a sure win for the United States, but as General Nakasone recognized, the nation is only now beginning to discern the broad contours of the threats and opportunities present in military cyber operations.

Greater attention and investment from policymakers are needed to better develop the U.S. strategy and capabilities for effective cyber operations for the future.

RF Thomas Spoehr is director of the Heritage Foundation’s Center for National Defense, where James Di Pane is a researcher.

Are you doing what you want to do?

Occupational therapy is the only profession that helps people across the lifespan do the things they want and need to do through the therapeutic use of everyday activities (occupations).

AOTA is proud to support the Ripon Society.

The American Occupational Therapy Association 4720 Montgomery Lane Bethesda, MD 20814 FAD@aota.org

• When children with autism can pay attention in class, make friends, and handle complex situations, they become successful adults.

• When people with disabilities can function as independently as possible, they achieve their full potential.

• When older adults can manage safely in their homes through adaptations, modifications, and supports, they avoid a nursing home.

• When people with mental illness have needed day-to-day independent living skills, they avoid institutionalization.

www.aota.org RIPON FORUM September 2018

11

The Magnitude of the Cyber Threat Facing America

by FRANK CILLUFFO

Earlier this summer, Director of National Intelligence Russia led the way by incorporating cyber measures into Dan Coats issued a blunt warning with regard to the its offensive operations against Estonia and the former growing cyber threat facing America. He said that the Soviet Republic of Georgia during that period. system was “blinking red” in the face of a likely attack.

Today, virtually all countries have developed or are Many of us will recall that this same language was seeking to develop a cybersecurity strategy as well as a used 17 years ago in a different but equally alarming military architecture and doctrine that lays the foundation context -- to describe the state of affairs in the weeks for a national cyber capability which is both offensive immediately prior to the 9/11 terrorist attacks against the and defensive in nature. Regional organizations such United States. DNI Coats is as NATO and the European not alone in his assessment of Union are engaging in a similar the threat we currently face. exercise and planning. This is Indeed, as Secretary of because the cyber threat has Homeland Security Kirstjen become so pervasive, multiNielsen stated during the dimensional, and concerning. recent National Cybersecurity Indeed, just the other Summit in New York, cyber day, the Homeland Security threats “now collectively Secretary stated (during exceed the danger of physical an event that I hosted) attacks against us.” She went that “we have moved past on to warn that: “We are in the ‘epidemic’ stage and crisis mode. A ‘Cat 5’ hurricane are now at a ‘pandemic’ has been forecast, and now we stage—a worldwide outbreak must prepare.” of cyberattacks and cyber Their forceful proclamations vulnerabilities.” In short, Frank Cilluffo underscore not only both the a wider range of nefarious breadth and depth of the cyber actors than ever before can As Secretary of Homeland threat, but how it has evolved now access “sophisticated over time.

Security Kirstjen Nielsen digital toolkits…spreading

like wildfire.”

The statistics stated, “We are in crisis mode.

From Hacktivists cited on cybercrime alone A ‘Cat 5’ hurricane has been to Terrorists are jaw-dropping: by 2021, At its inception, the cyber some estimate that cybercrime forecast, and now we era levelled the playing field, damage will reach $6 trillion must prepare.” allowing individuals and small per year. That would be groups to wield power on a equivalent to almost 10% of global scale and challenge the global economy. entities as big and powerful as the nation-state itself.

Symantec’s latest Internet Security Threat Report When threats arose, they often presented as contains equally disturbing statistics and trends: in 2017, distributed denial of service (DDoS) attacks, where a there was a 200% increase in malware inserted into flood of traffic would cause a government or company the software supply chain; the number of new malware website to shut down; or as cyber “graffiti”, where the variants targeting mobile devices rose 54%; and there perpetrators would deface the targeted websites. By was a 600% increase in attacks on the Internet of Things.

2007 and 2008 though, cyber tools, tactics, techniques, Consider that the WannaCry cyberattack alone affected and procedures were being integrated into warfare; hundreds of thousands of computers, in 150 countries, 12

RIPON FORUM September 2018

and caused billions of dollars of damage.

Finally, entities such as ‘hacktivists,’ single-issue Clearly, not all hacks are the same; nor are all hackers organizations, and disgruntled employees may also or their targets. We face a signal-to-noise dilemma. Who have considerable skills and capabilities. Their motive and what do we really need to pay attention to and why? is often to cause maximum embarrassment to their The threat comes in various shapes, sizes and forms. targets and to bring attention to their cause.

They range from nation-states, to criminal enterprises, foreign terrorist organizations, business competitors, The Targets of their Attacks and hacktivists and script-kiddies. Just as diverse as the The Department of Homeland Security has threat actors themselves are the wide variance in their designated 16 critical infrastructures to be vital to our intentions, capabilities, and the tools they deploy. national and economic security.

At the highest end of the spectrum lie advanced The so-called “lifeline” sectors — such as persistent threats. These include nation-states with water, energy and electricity, financial services, sophisticated capabilities and demonstrated intent to transportation, telecommunications, and of course, the harm the United States and its allies. China, Russia, Iran, defense industrial base — are at once the most critical and North Korea have repeatedly acted in this manner of our critical infrastructures, while also the most and, in doing so, shown their cyber-savvy. targeted.

Following nation-states, criminal organizations are They are the jewels in the U.S. crown, in the eyes the next most capable threat of the adversary. Against this actors. A word of caution background, these sectors here -- the gap between have invested heavily in Symantec’s latest Internet sophisticated cyber criminals their own protection and and nation-state actors is resilience, knowing that Security Threat Report contains increasingly narrowing, with their continuity of operations equally disturbing statistics: in the primary differentiator is crucial to ensure public 2017, there was a 200% increase being that nation- states can health and safety. But the utilize all source intelligence, task is complicated by the in malware inserted into the of which cyber is merely many interdependencies that software supply chain and there exist between and among one means. Needless to say, what differentiates criminals these sectors, as well as by was a 600% increase in attacks from other threat actors the public/private nature of on the Internet of Things. such as nation-states and the enterprise (over 85% of terrorist organizations is U.S. critical infrastructure is their motivation and intent. owned and operated by the Rather than being motivated by ideology or political private sector, which underscores how essential public/ concerns, criminal organizations are driven by profit. private partnerships are).

They hope to stay under the radar and don’t want to What lies ahead is not terribly comforting. The bring any attention to their profitable, albeit illegal, threat tempo is accelerating and magnified by the speed activity. This is where most of the malicious cyber at which technology evolves. Our ability to ‘network’ activity today occurs, and it is occurring at scale – so has far outpaced our ability to protect ‘networks.’ Just called ‘Cybercrime-as-a-Service’. Compounding this think about the Internet of Things, with an estimated 40 challenge is that nation-states are increasingly turning to billion new devices expected to be interconnected by cyber criminals as proxies do their bidding.

2020. That is an exponential growth in connectivity -Next up are foreign terrorist organizations. and an exponentially larger attack surface. At the same They certainly possess the motivation and intent, but time, China, Russia, and others are investing heavily in fortunately they have not yet fully developed a sustained artificial intelligence (A.I.), quantum computing, and cyber-attack capability. It is likely, though, that they will space-based means of strategic advantage (to name just increasingly turn to disruptive cyber-attacks. Whatever a few). capabilities they don’t possess, they can simply buy or The United States, too, is dedicating personnel rent on the dark web. Moreover, since ISIS demonstrated and resources to these and other areas of innovation its sophisticated use of social media for both propaganda that are intended to bolster our posture both at home and operational planning and tradecraft purposes, it and abroad. Yet many of these technological advances would be foolish to discount that they -- or future likecut both ways; for instance, A.I. can be expected to minded organizations -- won’t develop a computer empower the adversary as well as our own activities and network attack capability or at least rent tools to enable a efforts directed towards national defense and national cyber drive-by shooting capability. and economic security. Unfortunately, bits and bytes RIPON FORUM September 2018

13

do not respect borders, which is one way of saying that a transnational challenge requires transnational solutions.

This demands a redoubling of our efforts with our allies, and calls for both strengthening and building new cyber alliances from a diplomatic, military and economic perspective. That said, there is much that can and should be done here at home.

the platform that powers and upholds our national and economic security.

As of now, and likely for the foreseeable future, the initiative remains with the cyber attacker. They will continue to have first-mover advantage over the defender. It is increasingly clear that we cannot simply ‘firewall’ or defend our way out of this problem. A more forward-leaning posture that is supported and underThe Challenges Ahead pinned by similar strategies and tactics is needed. For At the very top of that list must be protecting and too long, our cyber-adversaries have had the run of preserving continuity of operations of our lifeline the field, without the imposition of timely and severe sectors. Resources are consequences designed finite, even in a country as to discourage further prosperous and generous malicious (if not as America. Yet our risk downright hostile) profile is remarkably activities directed against expansive. The only way the United States. forward is to prioritize Indeed, a robust and manage accordingly. deterrence strategy Put differently, if has been the primary everything is critical, then element missing from nothing is. Recognizing the U.S. toolkit to this, the Department of date. Articulating and Homeland Security has executing such a strategy taken the lead on mapping must be a top priority in out “a collective defense the days ahead, in order strategy” — together with to expand the elements private sector partners of statecraft that are — that is centered on at our disposal for the protecting the Nation’s purpose of containing Our ability to ‘network’ has far critical infrastructure. and dissuading the most outpaced our ability to protect This is a solid step in significant cyber threat the right direction, but actors. ‘networks.’ Just think about the we must be clear-eyed As President Internet of Things, with an estimated Abraham -- a challenging path lies Lincoln once 40 billion new devices expected to be said, “The dogmas of the ahead.

Keep in mind that quiet past are inadequate interconnected by 2020. private companies are to the stormy present. The now on the frontlines occasion is piled high with of this conflict, at the very tip of the spear. Yet how difficulty, and we must rise -- with the occasion. As our many companies, even the largest, went into business case is new, so we must think anew, and act anew.” thinking they had to defend themselves against foreign The time is now to think anew and act anew with intelligence services and nation-state actors? This is regard to the cyber threats we face as a nation.

RF undoubtedly an uneven playing field. At minimum, we need to figure out a way to support and protect Frank J. Cilluffo directs the McCray Institute for these private sector entities that are the foundation Cybersecurity and Critical Infrastructure Protection at of U.S. innovation and prosperity — which in turn is Auburn University.

“Ideas that matter, since 1965.“

14

Subscribe to The Ripon Forum One year - Six editions for $40 www.riponsociety.org RIPON FORUM September 2018

BP has invested more than

$100 billion in the U.S. since 2005

BP invests more in the U.S. than anywhere else, and every day we produce and refine enough energy to light the entire country.

Learn more in our Economic Impact Report: bp.com/eir

Š 2018 BP Products North America Inc. All rights reserved.

Defending the Grid

How the public & private sector are working together to protect America’s supply of electric power

by TOM KUHN Every second of every day, America’s electric companies test our capabilities and response plans before they ever need are delivering energy to their customers that is reliable, to be put into action. affordable, safe, and increasingly clean. This energy drives In addition to the ESCC’s activities, EEI members our economy and enables our way of life, and providing coordinate closely with the public-sector offices dedicated reliable service is a responsibility electric companies take very to protecting critical infrastructure. Just like the private seriously. This includes protecting the energy grid from cyber- sector, our government partners are evolving in response to attacks, which are increasing in frequency and sophistication. the dynamic threat environment we face today. In February, As these threats evolve, so, too, do our security strategies, Secretary of Energy Rick Perry announced the creation of which are closely coordinated with the new Office of Cybersecurity, the federal government through a Energy Security, and Emergency partnership called the Electricity Response (CESER), to help the Subsector Coordinating Council electric power industry better protect (ESCC). itself from future cyber-attacks and The CEO-led ESCC serves as ensure a reliable supply of electricity the principal liaison between the for customers. The Department of federal government and the electric Energy has been an important partner power industry on grid security and in helping industry prepare for and resilience issues, coordinating with respond to incidents. EEI looks senior officials from across the federal forward to continuing this partnership government, including the White with DOE and working closely with House, the Department of Energy Assistant Secretary Karen Evans and (DOE), Department of Homeland the new CESER office to continue Security, the Office of the Director of this important mission.

National Intelligence, and Defense, The value of industrythe Federal Energy Regulatory government coordination cannot be Commission, and the FBI. Together, overstated. Coordinating directly with Tom Kuhn they improve security through a the government allows EEI members host of initiatives that enhance how to take a more comprehensive As cyber threats evolve, industry and government prepare approach to identifying, assessing, for, and respond to, threats to critical and mitigating threats and suspicious so, too, do our security infrastructure. activity. The government regularly strategies, which are This partnership extends well provides classified briefings to closely coordinated with beyond just cybersecurity. Edison system operators regarding the latest Electric Institute’s (EEI’s) member threats to the electric power industry. the federal government. companies and our government When companies receive actionable partners prepare to respond to all intelligence, they are able to take hazards, whether they be physical or cyber or naturally action to prevent or to mitigate future attacks. occurring or manmade. Since it would be impossible for The Cybersecurity Risk Information Sharing Program companies to protect every asset from every threat all the time, (CRISP) is a great example of a valuable technology that we prioritize based on the likelihood and severity of a threat. has resulted from this partnership, combining intelligence We also focus on managing consequences by preparing to and analysis from the electric power industry, DOE, Pacific restore power quickly and safely regardless of why an outage Northwest and Argonne National Laboratories, and the occurred. As an industry, we know that the public depends on Electricity Information Sharing and Analysis Center (E-ISAC). us to restore power as safely and quickly as possible when an More than 75% of U.S. electric customers are served by a incident occurs, and industry-government exercises regularly company that has deployed CRISP, and this program will 16

RIPON FORUM September 2018

continue to grow as the information gleaned from its sensors resources from more than 145 electric and natural gas companies and the associated analyses have proven extremely valuable to representing investor-owned electric companies, public power identifying and addressing security risks. utilities, electric cooperatives, natural gas companies, regional The electric power industry invests more than $100 transmission organizations and independent system operators, and billion each year to make the energy grid stronger, smarter, Canadian electric companies. This network covers approximately cleaner, more dynamic, 80% of U.S. electricity and more secure. These customers and roughly 75% investments in smarter of U.S. domestic natural gas In February, Secretary Rick Perry energy infrastructure announced the creation of the new Office customers. help companies to better In today’s dynamic of Cybersecurity, Energy Security, and monitor their systems, and threat environment, they provide the flexibility programs like CRISP and Emergency Response to help the electric and resiliency needed to CMA are critical tools for power industry better protect itself from manage incidents in real the electric power industry future cyber-attacks. time. The industry also to ensure our ability to focuses on workforce provide reliable energy development to ensure to customers. The energy that we have employees with the skills needed to respond to grid is the backbone of the U.S. economy, and securing it is incidents. critical to the life, health and safety of all Americans. In the Our industry’s new cyber mutual assistance (CMA) program face of evolving threats, the industry will continue to invest in is a great example of how the ESCC can drive initiatives that make security, improve information sharing, further develop mutual the whole industry more secure. Building on our industry’s culture assistance networks, and strengthen government and crossof mutual assistance, we established an industry-wide program sector partnerships.

RF that will help companies restore critical computer systems following significant cyber incidents. The program now offers Tom Kuhn is president of the Edison Electric Institute.

America’s Electric Cooperatives

We power $12 billion in local investment every year NRECA proudly supports the Ripon Society

RIPON FORUM September 2018

17

Closing the Federal Cyber Workforce Gap

by MAX STIER The exodus of about 20 top FBI cybersecurity leaders in after nearly four years, the Department still did not have a full the past five years is a troubling development given the serious understanding of its cyber workforce or the skills it needed to threats faced by our election systems, financial networks, the protect its networks and the public at large. electric power grid, and the vast trove of sensitive data held by In addition, Rep. Michael McCaul (R-Tex.), Chairman federal agencies. of the House Homeland Security Committee, earlier this year Unfortunately, the FBI’s cyber workforce predicament chastised DHS for being far too slow in using a special hiring is emblematic of the experience authority provided by Congress to across the federal government. more quickly bring new cyber talent Agencies are routinely losing out on board. in the competition with higherGovernment-wide, the GAO paying private-sector employers for reported in June that the process scarce cyber talent, often lacking federal agencies are supposed to use employees with the skills needed under the Federal Cybersecurity to detect and prevent cyber-attacks, Workforce Assessment Act of and failing to take full advantage 2015 to categorize and account of the authority they have to hire for cybersecurity workforce skill and retain information security gaps has been plagued by missed professionals. deadlines and delinquent reporting.

A recent report in May by the The GAO said the Office of Office of Management and Budget Personnel Management fell behind found that three quarters of the schedule in establishing a structure federal agencies lack the capability to track government cybersecurity in terms of manpower, skill level positions, but it also noted that some Max Stier and technology “to effectively of the cyber workforce assessments detect data exfiltration attempts and by the major agencies have A recent report by the Office made respond to cybersecurity incidents.” been unreliable or incomplete. of Management and Budget According to recent estimates, To its credit, the Trump there were 301,873 cybersecurity Administration’s plan to reorganize found that three quarters job openings in the U.S. between government operations has of the federal agencies lack April 2017 and March 2018, recognized that reducing agency including 13,610 jobs in the public the capability “to effectively vulnerability to malicious actors sector that includes the federal requires investing in the cybersecurity detect data exfiltration government. Attempts to address workforce. It has offered several attempts and respond to the talent gap in government have ideas that my organization, the been made by Congress along with Partnership for Public Service, cybersecurity incidents.” the Obama administration and now previously recommended. These President Trump, but agencies have proposals include scaling hiring displayed a glaring lack of urgency to identify their talent flexibilities across government, promoting employee mobility needs and take steps to make up for the deficiencies. among agencies, government-wide cyber training programs, In 2014, for example, Congress passed the Homeland and use of retention incentives for entry- and mid-level cyber Security Cybersecurity Workforce Assessment Act that directed professionals. the Department of Homeland Security to identify all of its Making real progress on these and other initiatives, cybersecurity positions and assess where it was falling short. however, will require determined and sustained leadership The Government Accountability Office reported in March that from the White House and agency leaders.

18

RIPON FORUM September 2018

As a start, agency leaders need to comply with the public service, and they should take a page from the United Cybersecurity Workforce Assessment Act to fully understand States Digital Service recruitment playbook. To attract talented their needs and begin to recruit and hire qualified people. tech experts into government, USDS has focused on building At the same time, the administration should facilitate faster the government’s brand, engaging subject matter experts in hiring by standardizing job descriptions, reforming the lengthy recruiting, and assessing talent by using specialized recruiters security clearance process that is now a major barrier to getting and proactively communicating with candidates throughout the hiring process. people on board, and The Trump directing human resources Administration has the To its credit, the Trump professionals and hiring opportunity to make managers to immediately Administration’s plan to reorganize significant progress start using available government operations has recognized that in closing the federal special hiring authorities.

OPM has granted reducing agency vulnerability to malicious cyber workforce gap, but strong leadership, agencies what is known actors requires investing in the a serious commitment, as direct-hire authority and a sense of urgency cybersecurity workforce. for cybersecurity jobs, are essential. There but a lack of awareness are clearly obstacles to by some hiring managers combined with the rule-bound hiring process still limits its overcome, including the nationwide shortage of skilled cyber effectiveness. One notable authority, the Competitive Service professionals and competition from the higher-paying private Act of 2015, enables agencies to share lists of qualified, ready- sector. But federal leaders must take full ownership and to-hire candidates who have not been hired by a particular begin to solve a serious workforce problem that is central to protecting our government’s digital infrastructure.

RF agency, but it has yet to be used in any significant way.

Agencies also should expand their use of cybersecurity internships and fellowships that provide additional Max Stier is the president and CEO of the Partnership for opportunities for younger cybersecurity specialists to enter Public Service.

We’re driven to improve people’s lives.

Since our founding in 1781, Takeda Pharmaceuticals is committed to bringing better health and a brighter future to people worldwide, through leading innovation in medicine. www.takeda.us

Takeda Pharmaceuticals U.S.A., Inc.

RIPON FORUM September 2018

19

Paper Ballots & Election Security: Why machine vulnerabilities must be balanced against human flaws

by PHILIP STUPAK “Would you say that oval is filled in 5/8ths, or more like True electoral security requires that we maintain a secret 7/8ths of the way?” ballot. Vote-by-mail, all-paper ballots fail this test. It is The question may sound esoteric, but in the fall of impossible to determine who actually filled out a ballot — 2005, it was actually one that was frequently asked during elderly citizens’ ballots, for example, might have been filled the recount of a New York City judicial election. out by their child or assisted living facility staff — much Following the 2000 Presidential election, Congress less who was present when the ballot was filled out. passed the Help America Vote Act Did an employer verify (HAVA), transitioning the nation employee votes? Did the ballot from butterfly ballots to electronic arrive at the intended recipient? voting machines. That solved Ostensibly, signature requirements a 20th century problem, while guard against the latter. But I have creating a 21st century problem. rarely seen a judge uphold signatures DEFCON’s Voting Village, as well as a security mechanism, due to it as researchers like Alex Halderman being impossible to determine why and Matt Blaze, have demonstrated a signature no longer matches, as that a well-trained adversary speed, injury, and writing surface could flip an election with current impact appearance. electoral machines.

Integrity of the voter’s intent Some recommend returning to is the real detriment of all-paper voter-completed paper ballots. In ballots. Paper ballots filled out 2005, before New York City fully by individuals present election implemented HAVA, provisional lawyers with a multitude of Philip Stupak and absentee ballots were cast opportunities to overturn election on paper ballots while Election outcomes. A partially-completed My experience with Day voting was conducted on oval will lead to the ballot being refrigerator-sized mechanical rejected; an incomplete erasure will voter-completed paper machines designed by Thomas lead to an over-vote and the ballot ballots demonstrated a Edison. being rejected; an errant mark My experience with significant security flaw: may indicate the voter was trying voter-completed paper ballots to nix their vote and the ballot They cannot guarantee demonstrated a significant security will be rejected. These issues are the integrity of the voters’ adjudicated, at best, by a judge, but flaw: They cannot guarantee the integrity of the voters’ intent. more often are decided at each table intent. recounting an election.

Measuring Election Security Availability of ballots for When I worked on cybersecurity policy for the Federal counting is another drawback of all-paper ballots when it government, we focused on the CIA triad: Confidentiality, is practiced as part of a substantial vote by mail system like Integrity, and Availability. in Oregon and Colorado. In 2016, nearly 400,000 mailed Given the concern about foreign actors hacking our paper absentee ballots were rejected for late arrival or elections, it is important to assess whether proposed reforms invalid signature — both issues that cannot be cured when improve an election’s CIA. Moving to voter-completed paper ballots are mailed. Moreover, as America continues paper ballots significantly weakens each CIA element. to segregate itself along partisan lines, mailed paper ballots Confidentiality of the ballot is sacrosanct to democracy. with a likely partisan tilt congregate in certain mailboxes 20

RIPON FORUM September 2018

auditing. Eliminating the human element from filling out paper ballot is as essential to election security as ensuring election machines produce a voter verifiable paper ballot. The voter can verify that malware has not A Recommended Solution While the 2016 presidential election ballot count changed their ballot, candidates cease to worry that was almost certainly not flipped, it should nonetheless attorneys will toss out the paper ballot for insufficiently serve as a clarion call that the electoral process is a new demonstrating voter intent, and the public has faith that the outcome was attack vector much like properly adjudicated airplanes after 9/11. given verification by a This is a deeply The best solution is a machineaudit. troubling, nonpartisan generated voter verifiable paper ballot risk-based M a c h i n e issue. An estimated 108 with mandatory risk-based auditing. generated paper nations can hack critical ballots and mandatory infrastructure, including risk-based audits electoral systems. The revelation of the global Iranian social media campaign are critical defenses against foreign attacks. Given the should motivate all political parties to ask whether administration’s China and Iran positions, Chairman they are universally supported by all 108 cyber-capable Roy Blunt should return both safeguards to the Secure nations. That question can easily be answered: They are Elections Act. As a matter of national security, Congress should not. Failure to address election security, as a national security risk, only guarantees that the 2020 presidential also appropriate Federal funds to implement both election will be a proxy cyberwar for Russians, Chinese, nationally before Republican ballots are attacked. RF Iranians, and up to 105 other national interests.

The best solution is a machine-generated voter Philip Stupak is a Senior Advisor with Cambridge Global verifiable paper ballot with mandatory risk-based Advisors. and sorting rooms. A bad actor need only target mail drops in a specific neighborhood to tilt a tight election.

RIPON FORUM September 2018

21

Safeguarding the Mid-Terms What states are doing – and not doing – to keep the November elections secure

by KYLE CHANCE There’s a mixed bag of actions being taken by the Secretaries grants—that Secretaries of State and Boards of Elections across of State and election officials in states across the country in order the country started looking into the threat seriously. Even then, to mitigate the infiltration of election systems during the 2018 that $380 million is only a fraction of what some lawmakers mid-terms. Some prioritize new voting machines, others seek to wanted to see allocated, and experts argue that updating the most bolster their cybersecurity, and a few are seeking to improve the outdated voting machines alone would cost $500 million.

In order to be eligible for their share of these federal grants, training and communication of state and local election officials.

But not only are there vastly different approaches to election each state was required to create a budget narrative outlining security, there are varying levels of concern from one state to how they would use the funds to make improvements that met EAC standards. According to the another.

EAC, there were five major categories The intelligence community in for which states are planning to use the United States has been forthcoming the grant funding: cybersecurity, new with their findings of foreign meddling voting equipment, improved voter in the 2016 election. Agencies have registration systems, post-election published reports, top officials went audit activities, and improved electionto Capitol Hill to testify and give related communication efforts. Two closed-door briefings to Members of thirds of all funds will be allocated Congress, and state election officials toward programs targeting the first have been notified of previous and two categories of cybersecurity and ongoing cyberattacks. Despite the voting equipment. unanimity of alarm among federal Other efforts identified by the agencies of impending cyber incidents, state officials include training for state state responses to the issue are far from and local election officials, hiring of consistent. personnel specialized in cybersecurity Traditionally, states have been or information technology, and apprehensive to the notion of the Despite the unanimity drafting internal policies outlining federal government intervening with new security protocols and incident their constitutionally reserved right of alarm among federal response plans. to run elections as they see fit—one agencies of impending The progress over the past six example being the 15 Republican and months is laudable, to be sure, but it Democratic states denying President cyber incidents, state still may not be enough. Bolstering Trump’s voter fraud commission’s responses to the issue are security through rebuilding databases, request for detailed voter data last year. far from consistent. replacement of election equipment, With this in mind, it is no surprise that and the implementation of new cyber states are reluctant to accept offers from federal agencies to assist them with handling their election strategies will not simply happen overnight. After looking through each state’s budget narrative, it is apparent that this endeavor of systems.

So, what are states doing in advance of the upcoming overhauling our election system is being approached by states as election? This question less than a year ago would have been a a long-term undertaking with some security measures not being tough one to answer. In early months of 2018 only a fraction of fully in place for nearly six more years.

Some goals will be achieved ahead of the 2018 mid-terms, states released press releases addressing their election security, and an even smaller portion published a plan outlining actions such as personnel training and tweaks to digital systems. But, the most notable changes (new and upgraded equipment, more being taken to actively prevent future attacks.

It wasn’t until this past March—when $380 million was secure voter registration systems, and being able to audit election appropriated to the U.S. Election Assistance Commission (EAC) results) will not see completion until after the 2018, 2020, and for the sole purpose of funding election security enhancement even the 2022 elections. Logistical complications, contractual 22

RIPON FORUM September 2018

obligations, and a lack of resources help explain the range of timelines.

West Virginia, for example, has a budget narrative where they outline to the EAC their use of $3.6 million of grant funding.

Secretary of State Mac Warner admitted, “West Virginia’s economic situation since the first round of [federal grants] in 2002 has deteriorated and many less-populated counties simply do not have resources to prioritize funding election systems over debts that continue to rise, such as jail bills and road maintenance,” he continued, “Funds to acquire [EAC] mandated machines that come with the latest and greatest technology and protections simply do not exist in many counties.”

Last year, the U.S intelligence community announced evidence of Russian infiltration and scanning of the election systems in 21 states. But, clandestine activities may stretch much further than originally reported according to Chris Krebs, the Undersecretary of DHS’ National Protection and Programs Directorate. “I would suspect that the Russians scanned all 50 states,” Krebs said in his testimony during a Congressional hearing in July. He further explained that these 21 states, which have been found to be targets of Russian cyber activity, are only the one’s that they know about.

As for the states which have been confirmed as being scanned by Russia, their reaction to the information has been all over the place. The state of Washington, for example, is reevaluating their election system, prioritizing system assessment and penetration testing in order to prevent future

break-ins. The state has also partnered with DHS to assess vulnerabilities, share information, and receive in-person cyber support. Actions like these lay the groundwork for a properly prepared system, supported fully by officials and policymakers from the top down.

Florida, on the other hand, is implementing policies seen as counterproductive according to local election officials. Despite the state receiving the second largest sum of nearly $10 million in federal funds, many counties are complaining. They accuse the state of implementing arbitrary and counterintuitive rules for how the money is being distributed, which include quick deadlines and provisions stating that all money not spent this year must be yielded back to the state. The problem with these policies is that they encourage the counties to act with shortterm thinking, and it hinders their ability to adequately plan a long-term investment strategy for their election security.

Rebuilding America’s electoral infrastructure is no small task. It will take time, resources, and an unprecedented level of cooperation in order to properly prepare to fend off international attacks to undermine U.S. elections. The mid-terms are just weeks away, and states across the country will soon find out whether they did enough in time to safeguard the credibility and security of their elections.

RF Kyle Chance is the Ripon Forum’s Editorial Assistant. For a chart illustrating how each state is spending federal election funds, please see the following pages.

A

s the backbone of American communities, the National Restaurant Association strives to move our industry forward by finding answers to the tough questions, distilling complex information into practical knowledge and helping our members navigate the issues that can leave them in the weeds. And that makes us the go-to resource for smart, relevant intelligence that helps our members run their businesses better because after all, we understand that our people are our greatest asset.

For more information, please visit www.restaurant.org/

RIPON FORUM September 2018 RiponAD.indd 1

23 8/21/18 12:14 PM

Use Federal Funds by (2018) USEof OF FEDERAL ELECTION FUNDS BYState STATE (2018) State (Federal Grant Amount)

Paper Cybersecurity Trail

Alabama ($6.1M)



Alaska ($3.0M) Arizona ($7.5M) Arkansas ($4.5M)

✕*

  

Colorado ($6.3M) Connecticut ($5.1M)

✕

D.C. ($3.0M) Florida ($19.1M) Georgia ($10.3M)

✕* ✕

Hawaii ($3.2M) Idaho ($3.2M) Illinois ($13.2M) Indiana ($7.6M)

✕*

Iowa ($4.6M) Kansas ($4.4M) Kentucky ($5.8M) Louisiana ($5.9M)

✕* ✕* ✕

Maine ($3.1M) Maryland ($7.1M) Massachisetts ($7.9M) Michigan ($10.7M) Minnesota ($6.6M) Mississippi ($4.5M)

Registration Sysems

Audit Activities

 







California ($34.6M)

Delaware ($3.0M)

Voting Equipment

✕*

Missouri ($7.2M)

                

          

     

          

Communication Efforts

   

  

 

  

 

      

 

 

 

 











    









 





  

Montana** ($3.0M) Nebraska ($3.5M) Nevada (4.3M) New Hampshire ($3.1M) New Jersey ($9.8M) New Mexico ($3.7M) New York ($19.5M) North Carolina ($10.4M)

✕

      



North Dakota ($3.0M) Ohio ($12.2M) 24

 RIPON FORUM September 2018

Use Federal Funds by (2018) USEof OF FEDERAL ELECTION FUNDS BYState STATE (2018) State (Federal Grant Amount)

Paper Voting Cybersecurity Trail Equipment

Oklahoma ($5.2M)

 

Oregon ($5.4M) Pennsylvania ($13.5M) South Carolina ($6.0M)

✕

South Dakota ($3.0M) Tennessee ($7.6M) Texas ($23.3M)

✕* ✕*

Utah ($4.1M) Vermont ($3.0M) Virginia ($9.1M) Washington ($7.9M) West Virginia ($3.6M)

✕*

BACKGROUND:

 







       

         

    

Wisconsin ($7.0M) Wyoming ($3.0M) Total Allocations ($380M)

Audit Activities



✕*

Rhode Island ($3.0M)

Registration Sysems



39.3% ($70.7M)

  

27.8% ($50.0M)

Communication Efforts

    

 

13.7% ($24.7M)

5.6% ($10.1M)

2.0% ($3.6M)

Key

In 2002,rows Congress passed the Help America Vote Act (HAVA).

This legislation was intended to rectify the weaknesses of state elecShaded indicate which states were targeted

by Russian hackers in 2016. tion systems following the 2000 election, where outdated and problem-prone equipment resulted in a drawn out, controversial process *These states have a voter-verified paper trail in some, but not all, of their voting precincts. determining the final vote count. Since 2002, HAVA has become a vehicle with which Congress allocates funds toward state election **As of publication, Montana yet tosteadily submitdeclined their budget outlining of the federal grants. upgrades.

Appropriations towardhas HAVA had since itsnarrative original passage, buttheir 2018use marks highest appropriation in over 10 years toward the program ($380 million). This chart shows how those funds were allocated and spent.

KEY:

* **

Shaded rows indicate states that were targeted by Russian hackers in 2016.

These states have a voter-verified paper trail in some, but not all, of their voting precincts.

As of publication, Montana has yet to submit their budget narrative outlining their use of the federal funds.

DEFINITIONS:

1. Paper Trail: Whether state voting systems produce a physical document or receipt of each voter’s completed ballot, otherwise referred to as a voter-verified paper audit trail. If a state is lacking a physical paper trail in every voting location, then a red “X” appears in their row.

2. Cybersecurity: Improvements in cybersecurity can be classified as enhancements, additions, and upgrades to a number of areas, such as multi-factor authentication for election officials accessing election management systems, hiring cybersecurity specialists, network monitoring, and security assessments.

3. Voting Equipment: The enhancement or upgrade of hardware used to cast votes. This may include implementing voting machines with an auditable paper trail, or it may include obtaining newer and more secure voting machines 4. Registration Systems: Enhancing the websites and databases where voter information is input, stored, and retrieved.

5. Audit Capabilities: This is the investment into policies and practices which are used for monitoring vote counts and accuracy in result-reporting.

6. Communication Efforts: This includes the hiring of personnel and implementation of policies for the purpose of ensuring information, updates, and news are quickly and accurately spread throughout all levels of the state’s election system.

- This information was compiled & prepared for The Ripon Society by Kyle Chance & and Olivia Fryman RIPON FORUM September 2018

25

Politics & Perspective

Troubling Trends in the Federal Budget

by ROBERT L. BIXBY

Elected leaders profess to be concerned about the billion in 2017. nation’s long-term economic growth. You’d never know It wasn’t always that way. Fifty years ago, the it, however, by looking at the federal budget. federal government spent more on investments than on For one thing, the budget suffers from a growing transfer payments. In 1967 investments amounted to 32 structural gap between spending and revenues. Under percent of the budget and transfers were at 28 percent. current law, the Congressional Budget Office (CBO) By 2017, investment spending had plunged to projects that annual budget deficits will rise from $800 13 percent of the budget and transfer payments had billion this year to $1.5 trillion ballooned to 72 percent. This in 2028. This is not good for the dynamic means we are investing nation’s long-term economic less in the productivity of the health. workforce even as we expect that After strong 3.1 percent workforce to bear the cost of rising economic growth in 2018 transfer payments, which we are (adjusted for inflation), CBO doing nothing to slow. projects that growth will settle The trend is likely to worsen into a slower pattern of roughly in the coming years because of 1.7 percent annual increases from demographics and the mechanics 2023 to 2028. of the budget.

The short-term spurt is due As noted, the largest transfer to fiscal stimulus from recently payments go for programs related enacted tax cuts and spending to retirement and health care. increases. The eventual slowdown These programs will grow in cost will be due to slower workforce as the population ages and per Bob Bixby growth, lagging productivity, and capita health care costs continue rising debt, which diverts capital to rise. Moreover, spending for Transfer programs from investment. these programs is considered Looking behind the numbers “mandatory,” meaning that they are crucial for many reveals that we are doing little, grow automatically based on families... if anything, to combat the forces eligibility and payment formulas. that produce such anemic growth Investment spending, on the projections. Specifically, no concerted efforts are being other hand, is concentrated in the “discretionary” made to rein in the debt, expand the workforce, or portion of the budget, which is more sensitive to invest in a more productive one. constraint because it must be approved each year The trend is illustrated by comparing what through the congressional appropriations process.

Washington spends on transfer payments and what it This portion of the budget has borne the brunt of spends on investments. recent efforts to restrain spending. The CBO projects Roughly three quarters of the federal budget that, under current law, discretionary spending consists of transfer payments -- government programs will decline over the next decade to a much smaller designed to provide income (or pay bills) in cash or in percentage of the economy than it has averaged in the kind to individuals and families. The largest transfer past. programs are Social Security, Medicare and Medicaid, Transfer programs are crucial for many families, which together totaled $1.9 trillion in 2017. but a budget composed overwhelmingly of transfers Much less of the budget goes toward investments and little of investments does not provide the tools for including physical improvements, research and sustainable, long-term economic growth. development, education and training. This totaled $529 Such growth depends upon two primary factors: 26

RIPON FORUM September 2018

workforce expansion and higher productivity per worker. productivity growth. Consequently, “lower nondefense Workforce growth is projected to slow substantially in the discretionary spending as a percentage of GDP would years ahead as the huge baby boom generation continues mean less federal investment, causing [productivity] to to enter its retirement years. So, economic growth will grow more slowly.�

For the United States to continue experiencing the be increasingly reliant on greater labor productivity to make up for at least a portion of the slowdown in robust economic growth it has enjoyed since World War the number of new workers. Current federal spending II, the federal government must support investment by focusing its outlays priorities, however, do on programs that not reflect this need. maximize physical Investment in ...but a budget composed overwhelmingly and human capital physical and human of transfers and little of investments does development.

In capital is a key not provide the tools for sustainable, longaddition, lawmakers mechanism through must put key transfer which lawmakers term economic growth. programs on more can strengthen the sustainable paths to economy and promote sustainable growth. Federal investments in education, ensure their existence for future generations.

By increasing the sustainability of transfer spending infrastructure, basic science, and research and development, among other initiatives, played a central and supporting federal investment, lawmakers can better role in fostering the strong economic growth that the prepare the nation for sustained long-term economic growth. RF United States has experienced since World War II. According to CBO, roughly half of nondefense discretionary spending from the 1980s onward has Robert L Bixby is Executive Director of The Concord consisted of federal investments that have contributed to Coalition.

RIPON FORUM September 2018

27

Dinner Starts With Us Half of all food grown around the world today is made possible through the use of fertilizer. And, we are doing it in a safe and sustainable way that will protect and strengthen our country for generations to come.

• The fertilizer industry adds $155 billion annually to the U.S. economy • We are 2x as safe as peer industries • We capture and reuse greenhouse gases equal to removing two million cars from the road each year • Fertilizer manufacturers reclaim 1.4 billion gallons of water and recycle another 461.9 billion gallons of treated wastewater • Fertilizer manufacturers capture enough waste heat to power 216,600 homes for an entire year

Get to know us better at tfi.org/stateoftheindustry

A Failure on 9/11, and a Lesson Finally Learned

by CHARLES WERNER The horrendous attacks on the U.S. on September along with a failed/flawed spectrum auction. Following 11, 2001 highlighted the need for better communications the failed spectrum auction, in 2010, a meeting was for the nation’s police, fire, and EMS responders. Prior held between public safety officials and the commercial to 2001, the ability to communicate over commercial wireless carriers in Reston, Virginia. In this meeting — wireless carriers would routinely be unavailable during which I attended as the chair of the SAFECOM Executive major incidents, large scale events and even some Committee — public safety officials specifically asked holidays — times when first the carriers if they would responders need it the most. provide priority and The 9/11 Commission preemption. The answer Report published in 2004 from all of the commercial included a recommendation wireless carriers was a that: “Congress should resounding, “NO”. support pending legislation In response, the which provides for next two years saw an expedited and increased unprecedented and united assignment of radio front emerge among all of spectrum for public safety the national public safety purposes.

Furthermore, organizations (police, high-risk urban areas, such sheriffs, fire service, and as New York City and EMS) in support of a Washington, D.C., should nationwide public safety establish signal corps units broadband network. The to ensure communications momentum continued to Prior to 2001, the ability to connectivity between and grow as the Big 7 national among civilian authorities, organizations (Council communicate over commercial local first responders, and of State Governments, wireless carriers would routinely the National Guard. Federal National Governors funding of such units should Association, National be unavailable during major be given high priority by Conference of State incidents, large scale events and Congress.”

Legislatures, National even some holidays — times Two years later, Morgan League of Cities, United O’Brien, the former CEO of States Conference when first responders need Nextel, met with a number of of Mayors, National it the most. public safety representatives Association of Counties, and proposed a concept of and the International City/ dedicated broadband spectrum for public safety. This County Management Association) supported the 20 MHz concept would carve out 20 MHz of 700 MHz spectrum of spectrum and the development of a NPSBN. (known at the time as “D” Block) that would be dedicated In 2012, Congress passed the Middle Class Tax Relief to public safety and would provide priority and preemption and Job Creation Act, which created the First Responder to ensure that first responders could communicate 365 Network Authority (FirstNet) as an independent authority days/year and 24/7 regardless of the traffic congestion on within NTIA, to provide emergency responders with the the wireless network. first high-speed, nationwide broadband network dedicated Over the next five years, there would be numerous to public safety. As part of this legislation, Congress meetings with commercial wireless carriers and legislators, purposely defined FirstNet’s network components, stating: RIPON FORUM September 2018

29

“The nationwide public safety broadband network previously unable to make mobile calls and unable to shall be based on a single, national network architecture stream video. Today, they are able to communicate and that evolves with technological advances…” 1 stream video over FirstNet. In 2017, FirstNet awarded a 25-year contract and The importance of having a single network like entered into a public-private partnership with AT&T FirstNet that is dedicated to public safety cannot be (the only wireless carrier to bid) to build the network. overstated, and that has been reinforced by a recent While the legislation specified a dedicated 20 MHz of incident involving the Santa Clara County Fire spectrum (Band 14), AT&T did something that would Department. The Department had an unlimited data plan prove to be innovative and beneficial to public safety with Verizon. During the major wild land fires which by providing priority and preemption on not only Band broke out in the area earlier this year, the Department 14, but over AT&T’s entire nationwide LTE spectrum. experienced heavy throttling of their service. “This This resulted in the immediate access to priority and throttling has had a significant impact on our ability to preemption for public safety provide emergency services,” on current devices as well as Santa Clara County Fire Chief existing and future Band 14 Anthony Bowden wrote. enabled devices.

Verizon apologized for this After Virginia became incident, saying it made a the first state to opt-in to the customer service error. The network, the Fairfax County Fire company has now lifted data Department became the first restrictions for first responders agency on FirstNet. Presently, on the West Coast. But make all 50 states and 6 territories no mistake — error or not, the have opted in to FirstNet, and restrictions should never have thousands of public safety been put in place. agencies are utilizing the The good news is that network with many more in America finally has a dedicated transition. Success stories are network that will allow first already being seen. Fairfax responders to communicate Charles Werner County transitioned to FirstNet with each other during times and immediately took advantage of a disaster or emergency.

The good news is that of priority and preemption, FirstNet is THE Nationwide America finally has a utilized enhanced push to talk Public Safety Broadband (ePTT) and interfaced with Network requested by and dedicated network that their land mobile radio system designed for public safety. will allow first responders and created a larger coverage FirstNet’s mission is to serve footprint through smart phones America’s first responders to communicate with each and tablets.

This enabled when and where they need it other during times of a some non-priority radios to the most, anytime and all of disaster or emergency. be replaced by smart phones, the time. reducing capital costs presently It should not have taken and in the future.

17 years to put this kind of Brazos County TX Sheriff’s Department became the network in place. But as we mark another anniversary first local agency in Texas to deploy FirstNet. Brazos of 9/11, let us be thankful that a lesson from that awful Sheriff Chris Kirk described how his department is now day has finally been learned, and lives will be saved as a able to do things they never imagined, like viewing live result. RF streaming video from any one of his 61 patrol cars. They used this streaming video for situational awareness Charles Werner is a 44-year veteran of public safety. during Hurricane Harvey, during a tornado, and during He is fire chief emeritus of the Charlottesville, VA, large events. Both Fairfax County and Brazos County, Fire Department, and recently served as senior advisor Texas, have also reported that during large scale and acting deputy state coordinator to the Virginia events with a large attendance of people that they were Department of Emergency Management. Chief Werner also served on the Department of Homeland Security SAFECOM Executive Committee, the National Public 1) Similar language to the final FirstNet legislation was also Safety Telecommunications Council and on the first provided in a white paper entitled, “Verizon Recommendation FirstNet Public Safety Advisory Committee. to FirstNet.” 30

RIPON FORUM September 2018

Investing in our communities has always been, and continues to be a cornerstone of communities our company.has It’s why Investing in our since 1946 Target invested percent always been, and has continues to5be a cornerstone of our company. It’s why where1946 our Target guestshas andinvested team members since 5 percent live, work and play. Learn more at Target.com/corporateresponsibility. where our guests and team members live, work and play. Learn more at Target.com/corporateresponsibility. ©2016 Target Brands, Inc. Target and the Bullseye Design are registered trademarks of Target Brands, Inc. C-000415-06-003

©2016 Target Brands, Inc. Target and the Bullseye Design are registered trademarks of Target Brands, Inc. C-000415-06-003

News & Events

Portman Praises Economic Rebound, but says Recovery is not yet Complete WASHINGTON, DC – With the economy booming and unemployment at a record low, U.S. Senator Rob Portman (R-OH) appeared before a breakfast meeting of The Ripon Society on Aug. 2nd to discuss the economic rebound in America and what can be done to help those who remain out of the workforce and are struggling to make ends meet.

“It’s heartening to see that there are serious changes being made in our economy that are positive for someone who’s making $40,000 to $50,000 a year and can now see a higher wage,” the Senator stated. “Even the quarterly numbers

32

in terms of non-supervisory wages represent the highest wage growth we’ve seen in at least a decade.

So this is exciting. It’s actually happening -- the things that we hoped would happen in the context of tax reform.”

“Added to that is regulatory relief, which I think is specifically because of some of things Congress did through the Congressional Review Act. We were able to get rid of a lot of bad regulations. But I think more broadly, it’s a different culture at the top. And it is a positive culture in my view, saying: ‘Yes, we understand regulations are important, but we’re not going to

RIPON FORUM September 2018

use regulations to punish businesses -- particularly small businesses.’

That change is dramatic back home.”

To that end, Portman noted that 75% of businesses in Ohio have indicated they are hiring this quarter. He further noted that the “Ohio Means Jobs” website, which posts job openings in the Buckeye State, had a list Thursday morning of about 145,000 that are currently available.

Despite this economic rebound, Portman stated that the economic recovery is not yet complete.

“There’s a lot of good stuff going on,” he said. “But we still haven’t

solved the issue of those who are on Act, legislation he authored with scale, who -- because of doubling the sidelines not engaged in work.” Senator Tim Kaine (D-VA) to the standard deduction, doubling “The best numbers the allow states and localities to use the child tax credit, and lowering Department of Labor can give you Perkins grant funding to establish rates -- no a longer have any federal is that there are 8.5 million men CTE-focused academies.

“It’s income tax liability.” between the ages of 25 and 55 who going to make a big difference,” he This tax relief aside, Portman are currently not working and not stated, because it encourages more said that Congress still needs to looking for work,” he stated. “Let’s career and technical education and do more “to deal with this issue of use that number – 8.5 million men encourages more opportunities for getting people off dependency to between the ages of 25 and 55. businesses to work in this space. Part work.”

These are able-bodied men in their of it is through more apprenticeships 3) The Record Number of prime working years. This is not and internships -- that sort of thing. Felons – “We have a record number about the baby boom generation But part of it is getting the business of people who have felony records retiring, which is what some community more engaged in the out there,” Portman said, “and it economists on the left particularly skills training. We have to do it.” is harder to get a job if you’ve got have been saying. It’s about people 2) The Welfare-to-Work that record.” To that end, Portman who are simply not at work.”

Cliff -- “As Republicans,” Portman noted that he is now working to According to Portman, there are observed, “we get attacked all the reauthorize The Second Chance Act, four reasons why Americans have time for being insensitive to people a bill he authored that was enacted not reentered the workforce as the who are dependent on government 10 years ago and has provided economy has continued to thousands of Ohioans and grow: more than 137,000 people in “There’s a lot of good stuff 1) The Skills Gap 49 states with skills training -- “The jobs of the 21st and other assistance to help going on. But we still haven’t century require a certain them find work and ease solved the issue of those who level of skill,” he stated. their reentry into society “The 145,000 jobs that after prison. Portman also are on the sidelines not are open today -- a lot of noted that he recently visited engaged in work.” them are IT jobs, coding a non-profit organization for instance. If you’re a in Youngstown, Ohio, that coder in Ohio, you can get performs just this type of a job, and you can walk into the job programs. I think there ought to be service. making 50, 60, 70 thousand bucks a a work requirement. But what we “It’s called Flying High,” he year. You can learn how to code in ought to say is ‘we want to give said of the organization. “They 10 weeks. If you’re a welder in Ohio, people the opportunity to have take people who are coming out you’ve got lots of opportunities. If dignity and self-respect.’ It comes of prison -- almost all of them you are machinists, go for it. There from work. Therefore, we have with a drug or alcohol issue -are lots of opportunities there, so if got to deal with the cliff. It’s real. and help them to learn wellness you have those kinds of skills you Because when you go from welfare skills. Every single one of them can get a job. If you’re in this health to work and you lose those benefits, is getting a job, and the stories of care space and you have a health there’s a cliff. There’s much less of course are incredible. There is some care skill, even if you’re a tech -- an incentive to get involved in work relapse -- some people go back to I’m not even talking about a nurse and take that sacrifice. Also, there’s their old ways, whether it’s their or a doctor -- you can get a job in a tax increase.” drug habit or whether it’s criminal Ohio right away. There are literally Portman noted Congress took activity. But the vast majority of thousands of jobs open right now a step in the right direction last these, in this case, men are finding in Ohio, and millions across the December when it passed the Tax themselves not just with jobs, but country. So, there is a skills gap, Cuts and Jobs Act, which lowered really good jobs. And they’re back because many Americans just don’t taxes on lower income Americans owning their own place, back with have those skills.” who are trying to find work. “Three their kids, getting custody again, To that end, Portman, who co- million Americans who had income back to being productive citizens. chairs the Senate Career & Technical tax liability as of last year have no It can happen.”

Education (CTE) Caucus, noted that income tax liability this year. Those 4) The Opioid Crisis – the President recently signed the three million people are people who According to Portman, the opioid Educating Tomorrow’s Workforce are at the lower end of the economic crisis is not only “the biggest issue” RIPON FORUM September 2018

33

facing America when it comes to people not reentering the workforce, but is also an issue “that I think the business community is not acknowledging and therefore not as engaged in as they should be.”

“The data is just overwhelming on this,” he continued. “If you look at the Department of Labor study that came out recently, if you look at the Brookings Institution study by the former head of the CEA for Obama, they tell you the same story -- which is that roughly half of the men I talked about earlier, the 8.5 million men, are taking pain medication on a daily basis.

“Think about that -- roughly half of these men. So let’s say 4 million men in America who otherwise might be working are taking pain medication on a daily basis. That’s not over-reported, folks -- that’s under-reported, both because of the

34

criminality involved, and because of the stigma that’s attached to an opioid addiction. That number is relatively low.

“In my home state of Ohio, we’re #2 or #3 in the country in terms of opioid addiction and overdoses.

Obviously, that’s going to be higher.

But let’s just use the number. What an enormous asset out there. What a great way for us to help close that gap of 145,000 jobs currently open.”

To that end, Portman recently introduced the Comprehensive Addiction and Recovery Act (CARA) 2.0 Act, a bipartisan proposal that provides additional funding to combat the opioid epidemic and builds on the landmark bill he authored two years ago. He is also the co-author of The STOP Act, which would close a loophole that currently allows dangerous synthetic drugs like Fentanyl from

RIPON FORUM September 2018

being shipped through the U.S. Postal Service to drug traffickers here in the United States.

“My answer when people ask me how things are going with the opioid epidemic is that there’s a lot of positive,” he said. “There’s a lot of innovation -- a lot of great things happening. But I will say I do believe that we would have been a lot further along, and we would have seen better results this year than last year in Ohio overall, not just in some counties but overall, but for Fentanyl … And we’ve got to deal with this.”

“Until we solve the opioid crisis and get these people off the sidelines and back into the game, we’re going to continue to see not only these individuals unable to achieve their God-given potential, but our economy unable to achieve its full potential at a time of economic growth.”

RF

Name: Jackie Walorski Occupation: U.S. Representative for Indiana’s 2nd District First job & lesson(s) learned from it: After graduating from college, I worked as a TV news reporter in my hometown of South Bend, Indiana. Working as a reporter gave me the opportunity to meet fellow Hoosiers from all walks of life, and it taught me the value of asking questions. I brought those lessons with me to Congress, where it’s my job to fight for my constituents and work to make our communities stronger. When I travel around the 2nd District, I get to talk to Hoosiers, learn about the challenges they face, and ask for their ideas as we work together toward commonsense solutions.

Book(s) you’re recommending to friends: “Unbroken: A World War II Story of Survival, Resilience, and Redemption,” by Laura Hillenbrand Top issue(s) in America that no one is talking about:I represent one of the top manufacturing districts in the nation, with RVs, boats, trailers, engine components, car parts, and countless other made-inAmerica products being built in northern Indiana. Our communities were hit hard by the recession, but Hoosiers are resilient and now we are near full employment. In fact, job creators tell me they have trouble hiring enough workers to keep growing. The jobs gap – the difference gap between businesses’ demand for workers and the millions of Americans not in the labor force – is a critical issue that deserves more attention. Earlier this year, the Ways and Means Committee on which I serve held a series of hearings examining solutions to the jobs gap and the need for skilled workers. We will continue working to find commonsense solutions to build a stronger American workforce and ensure more people can climb the economic ladder and achieve the American Dream.

Challenge facing your District that you’re working hard to address: Manufacturers and family farmers in my district tell me they are being hurt by the steel and aluminum tariffs as well as retaliation in response to these and other tariffs. President Trump is right to go after China’s unfair trade practices, but I am concerned about the long-term impact on American businesses and workers. That is why I’ve been urging the administration to make the tariffs more narrowly targeted and calling for improvements to the broken product exclusion process. I have heard from manufacturers across the country that the process is opaque, inconsistent, and unfair. The administration recently announced it would implement some of the commonsense fixes I’ve been calling for. This is a step in the right direction, and I will continue working to ensure we have pro-growth policies that build on our nation’s economic momentum and benefit American businesses, farmers, and workers.

Finally, finish this sentence: “If I could reform one government agency, it would be…”: The VA. Our brave men and women in uniform risk their lives each and every day to defend freedom and keep America safe. We have a responsibility to care for them when they return to civilian life. But too often, we have seen the VA fall short in its mission. Since I was first elected to Congress, I have been holding the VA’s feet to the fire and fighting to keep our nation’s promise to our veterans. We’ve taken important steps to restore a culture of accountability at the VA and provide veterans the timely, quality care they earned, but there is more work to be done. We must continue working to improve the care our veterans receive, eliminate long wait times, and ensure survivors of military sexual trauma get the support and treatment they need.

36

RIPON FORUM September 2018

The Ripon Society 1155 15th Street, NW Suite 550 Washington, DC 20005

Proudly supports the Ripon Society