It is our responsibility to ensure that the Department has the necessary resources, in terms of funding and personnel, to carry out its mission of protecting the nation from both natural and man-made disasters. Unfortunately, one of the first comprehensive tests for DHS came in the form of one of our most tragic natural disasters: Hurricane Katrina. All aspects of the Department, including senior leadership, preparedness and response capabilities, and policy and planning, were stressed and strained - many to the point of failure.

In many ways, today's hearing is a follow-up to the Katrina investigation this committee will conclude shortly. Over the past six months, we have identified areas of weakness and uncovered serious management challenges, while recognizing those entities that performed well. We must now ensure that the Department has the tools needed to avoid the mistakes of the past.

Unfortunately, after reviewing the President's FY 07 budget proposal for the Department, I do not believe the Administration has aligned its budget priorities in the right order. I am especially concerned about the diminished support for state and local emergency management and homeland security professionals who are our first line of defense.

We know that adequate funding of state and local homeland security initiatives are key to making sure that the people of our home states are protected against natural disasters. That is why I object to the Administration cutting almost $400 million from state and local homeland security assistance programs. Last year, Congress appropriated $2.965 billion. The FY07 budget proposes $2.57 billion for the same programs.

The budget proposal would also reduce the Assistance to Firefighters Program (FIRE Act) by a staggering 55.3 percent and the Emergency Management Performance Grants (EMPG) by 8.1 percent even though the EMPG program suffers an annual shortfall of $260 million. I look forward to discussing with Secretary Chertoff why these important all-hazards grant programs, which are so vital to my home state of Hawaii, have been cut. These cuts are especially perplexing in light of the Secretary's acknowledgment last week that the Department must emphasize all-hazards preparedness.

Throughout the debate over the creation of the Department, I cautioned that combining the various functions of the legacy departments could adversely impact the nation's ability to deal with natural disasters. Part of my concern was because I believe that this Administration undervalued the Federal Emergency Management Agency's (FEMA) disaster mitigation programs, which helps communities prepare for and respond to disasters.

Despite my belief that the establishment of the Department would hamper the federal government's ability to respond to disasters, it was my hope that DHS would develop an anticipatory culture of preventing and responding to disasters. Perhaps there will be a change in attitude given the $100 million increase to pre-disaster mitigation as well as moderate increases to both FEMA and the Department's new Preparedness Directorate. However, we cannot wait for catastrophic events like Hurricane Katrina to force this Administration into taking mitigation programs seriously.

With hurricane season only three months away, I am dismayed that the Department continues to ignore its enabling statute by failing to establish regional offices. Time and again, I have discussed with DHS officials the need for regional offices. I am particularly concerned because Hawaii, an island state, has no neighbors -- no resources outside of what is available within the state -- to respond to a natural or man-made disasters. At last week's hearing with Secretary Chertoff, I asked that he review the Department's relationship with the U.S. Pacific Command (PACOM) because my state of Hawaii is the only state that does not come under the protection of the U.S. Northern Command (NORTHCOM). This is why a consolidated DHS presence in the form of a regional Pacific office based in Hawaii is critical. I know that DHS has proposed establishing Federal Preparedness Coordinators in major metropolitan areas, but they are not a substitute for regional offices. I urge that consolidated regional offices be funded through the FY07 budget.

Secretary Chertoff, it is the responsibility of the Department of Homeland Security to provide unity of national effort before, during, and after catastrophic events. Over the past year, DHS has failed to function as a cohesive entity, let alone coordinate necessary federal, state, and local efforts. Nearly three years after its inception, DHS should be experienced in all aspects of planning and integration to achieve unity of national effort. As we debate next year's budget, we must remember that for the good of this great nation and its people, the Department of Homeland Security must not fail again.

Thank you Madam Chairman. I look forward to working with you, and I look forward to discussing the Department's budget proposal today.