Just a few weeks ago, in my State of the Union Address, I spoke about how America can win the

future by out-educating, out-innovating and out-building the rest of the world. I also talked about taking responsibility for our Nation's deficits, because we cant win the future if we pass on a mountain of debt to our children and grandchildren. Yesterday, I sent my budget proposal for 2012 to Congress, and I wanted to take a moment to explain some of the tough choices we had to make so we can afford to invest in our future. Like American families, the Federal Government must live within its means. That means eliminating wasteful spending and cutting programs that aren't working. It also means that programs, like Community Development Block Grants, which I care about deeply, need to be scaled back to confront the crushing debt we face. You can learn more about the budget proposal and watch Jack Lew, the Director of the Office of Management and Budget, explain our approach here:

Getting our fiscal house in order requires shared sacrifice. But even in these tough times, we have a responsibility to make smart investments in our Nation's future. That's why we must invest in innovation to ensure that the jobs and industries of the future are built right here in America. It's why we need to invest in roads, bridges, high-speed rail and high-speed Internet to help our businesses ship their goods and ideas around the world. And it's why America must invest in education so that all of our children have an opportunity to fulfill their potential. Even though parents are the key to a child's education,

we have a responsibility to ensure that America's students are prepared to compete and thrive in the 21st century global economy. Yesterday, I visited Parkville Middle School and Center of Technology near Baltimore, Maryland. At Parkville, students gain a strong background in math, science and critical thinking skills that they will need to compete for the jobs of the 21st century. In fact, the most popular subject in their magnet program is engineering. Investing in schools like Parkville, investing in quality teachers, investing in higher education these are down payments on our children's and our country's future. Here are just a few investments in education that I've proposed in the budget I sent to Congress:

Preparing 100,000 new math, science and engineering teachers. Expanding Race to the Top, a reform program that has led more than 40 states to raise their standards for teaching and learning for less than 1 percent of what we spend on education each year. Helping more kids afford college by making the American Opportunity Tax Credit permanent and strengthening Pell Grants for 9 million students.

Here in Washington, we have to take a cue from millions of American families who have been tightening their belts while continuing to invest in their future. And that's exactly what my budget proposal does it puts us on a path to live within our means so we can invest in our future. Sincerely, President Barack Obama

Remarks of President Barack Obama As Prepared for Delivery February 26, 2011 Washington, DC Over the last month, Ive been traveling the country, talking to Americans about how we can out-educate, out-innovate, and out-build the rest of the world. Doing that will require a government that lives within its means, and cuts whatever spending we can afford to do without. But it will also require investing in our nations future training and educating our workers; increasing our commitment to research and technology; building new roads and bridges, high-speed rail and high-speed internet. In cities and towns throughout America, Ive seen the benefits of these investments. The schools and colleges of Oregon are providing Intel the states largest private employer with a steady stream of highly-educated workers and engineers. At Parkville Middle School outside of Baltimore, engineering is the most popular subject, thanks to outstanding teachers who are inspiring students to focus on their math and science skills. In Wisconsin, a company called Orion is putting hundreds of people to work manufacturing energy-efficient lights in a once-shuttered plant. And in the small community of Marquette, in Michigans Upper Peninsula, widely accessible high-speed internet has allowed students and entrepreneurs to connect to the global economy. One small business, a third-generation, family-owned clothing shop called Getzs is now selling their products online, which has helped them double their workforce and make them one of Americas 5,000 fastest-growing companies in a recent listing. Each of these places reminds us that investments in education, innovation, and infrastructure are an essential down payment on our future. But they also remind us that the only way we can afford these investments is by getting our fiscal house in order. Just like any family, we have to live within our means to make room for things we absolutely need. Thats why Ive called for a freeze on annual domestic spending over the next five years a freeze that would cut the deficit by more than $400 billion over the next decade, bringing this kind of spending to its lowest share of our economy since Dwight Eisenhower was President. Just to be clear, thats lower than it was under the past three administrations, and lower than it was under Ronald Reagan. Now, putting this budget freeze in place will require tough choices. Thats why Ive

frozen salaries for hardworking civil servants for three years, and proposed cutting programs I care about deeply, like community action programs in low-income neighborhoods. Im not taking these steps lightly but Im taking them because our economic future demands it. Still, a freeze in annual domestic spending is just a start. If were serious about tackling our long-run fiscal challenges, we also need to cut excessive spending wherever we find it in defense spending, spending in Medicare and Medicaid, and spending through tax breaks and loopholes. Im willing to consider any serious ideas to help us reduce the deficit no matter what party is proposing them. But instead of cutting the investments in education and innovation we need to out-compete the rest of the world, we need a balanced approach to deficit reduction. We all need to be willing to sacrifice, but we cant sacrifice our future. Next week, Congress will focus on a short-term budget. For the sake of our people and our economy, we cannot allow gridlock to prevail. Both Democratic and Republican leaders in the House and Senate have said they believe its important to keep the government running while we work together on a plan to reduce our long-term deficit. Given that, I urge and expect them to find common ground so we can accelerate, not impede, economic growth. It wont be easy. There will be plenty of debates and disagreements, and neither party will get everything it wants. Both sides will have to compromise. Thats what it will take to do whats right for our country. And I look forward to working with members of both parties to produce a responsible budget that cuts what we cant afford, sharpens Americas competitive edge in the world, and helps us win the future. Thanks everyone, and have a nice weekend.