Tuesday, January 15, 2013

Fiscal cliff realized



A very scary ALNAV. Located here: http://www.public.navy.mil/bupers-npc/reference/messages/Documents/ALNAVS/ALN2013/ALN13006.txt

ALNAV 006/13

MSGID/GENADMIN/SECNAV WASHINGTON DC/-/JAN//

SUBJ/RISK MITIGATION FISCAL PLANNING//

RMKS/1.  THIS IS AN UPDATE ON THE CURRENT FISCAL SITUATION FACING THE NAVY AND 
MARINE CORPS AS CONGRESS CONTINUES TO WORK TOWARD A DEFICIT  REDUCTION PLAN TO 
AVOID THE DAMAGING EFFECTS OF SEQUESTRATION AND TO  PASS A BUDGET TO END THE 
EQUALLY DELETERIOUS EFFECTS OF THE  CONTINUING RESOLUTION (CR) UNDER WHICH WE 
HAVE OPERATED SINCE THE  FISCAL YEAR BEGAN OCTOBER 1, 2012.

2.  SEQUESTRATION WAS DELAYED FOR TWO MONTHS IN THE AMERICAN TAXPAYER  RELIEF 
ACT (ATRA) PASSED BY CONGRESS ON 1 JANUARY, CREATING MORE  TIME TO AGREE ON 
DEFICIT REDUCTION, BUT GIVING THE DEPARTMENT OF  DEFENSE LESS TIME TO MITIGATE 
SPENDING CUTS IF NO AGREEMENT CAN BE  REACHED.

3.  BUT DON (AND ALL OF DOD) FACE AN EQUAL BUT MORE IMMEDIATE FISCAL  
CHALLENGE BECAUSE OF THE LACK OF AN FY-13 APPROPRIATIONS BILL, WHICH  HAS LEFT 
US OPERATING UNDER THE CR, WHICH LOCKS OUR BUDGET INTO  LOWER FY-12 LEVELS FOR 
OUR OPERATIONS AND MAINTENANCE ACCOUNTS  DESPITE INCREASING RESPONSIBILITIES 
WHICH DEMAND INCREASED  RESOURCES.

4.  BECAUSE SEQUESTRATION WAS DELAYED, OUR FOCUS MUST NOW SHIFT TO THE IMPACTS 
OF THE CR, WHICH CREATES SIGNIFICANT SHORTFALLS IN OPERATION & MAINTENANCE, 
NAVY (OMN) AND MARINE CORPS (OMMC) ACCOUNTS AND THE RESULTANT STEPS WE MUST 
TAKE TO MAINTAIN A MINIMUM LEVEL OF PRESENCE.  UNLESS A SPENDING BILL IS 
PASSED QUICKLY BY THE NEW CONGRESS, WE MAY BE FORCED TO OPERATE UNDER THE SAME 
CR THAT HAS BEEN SUSTAINING US SINCE THE BEGINNING OF THIS FISCAL YEAR.  THIS 
CR IS SET TO EXPIRE AT THE END OF MARCH. SHOULD CONGRESS DECIDE TO EXTEND THE 
CR THROUGH THE END OF FY-13, THE NAVY AND MARINE CORPS WOULD NOT HAVE ENOUGH 
MONEY TO MEET FY-13 REQUIREMENTS IN THESE ACCOUNTS.

5.  WE EXPECT TO RECEIVE FY-13 OVERSEAS CONTINGENCY OPERATIONS (OCO) FUNDING; 
HOWEVER, THOSE FUNDS ARE EARMARKED FOR SUPPORT OF CRITICAL WARFIGHTING 
REQUIREMENTS AND WOULD NOT PROVIDE ANY SIGNIFICANT RELIEF TO OUR BASELINE 
OPERATING ACCOUNTS.  WE PROJECT A SHORTFALL OF OVER $4 BILLION IN OUR BASE O&M 
ACCOUNTS WHICH FUNDS NAVY AND MARINE CORPS READINESS.

6.  GIVEN THE GREAT UNCERTAINTY WE FACE, WE MUST ENACT PRUDENT, BUT  STRINGENT 
BELT-TIGHTENING MEASURES NOW THAT WILL PERMIT US TO  OPERATE THE NAVY AND 
MARINE CORPS THROUGH THE REST OF THIS FISCAL  YEAR IF THE CR IS EXTENDED.  
EACH OF THESE STEPS ARE DESIGNED TO BE REVERSIBLE, AT LEAST TO SOME EXTENT, 
SHOULD CONGRESS PASS AN FY-13 BUDGET.  ACCORDINGLY, NAVY AND MARINE CORPS 
LEADERSHIP HAS ADVISED  THE SECRETARY OF DEFENSE THAT THEY ARE CONSIDERING A 
SERIES OF  ACTIONS, EACH SUBJECT TO EXCEPTIONS FOR MISSION-CRITICAL 
ACTIVITIES.
  ACTIONS INCLUDE BUT ARE NOT LIMITED TO:
- CURTAIL ADMINISTRATIVE CONTRACTING SUPPORT SERVICES
- REDUCE TRAVEL
- DELAY ALL DECOMMISSIONINGS AND ANY DISPOSALS OR LAY-UPS
- REDUCE INFORMATION TECHNOLOGY AND ADMINISTRATIVE BUDGETS
- CURTAIL REMAINING FACILITY SUSTAINMENT RESTORATION AND MODERNIZATION 
PROGRAMS
- CUT FACILITIES SUSTAINMENT, EXCEPT FOR SAFETY OF LIFE
- REDUCE SPENDING ON BASE OPERATING SUPPORT
- CANCEL ANY PLANNED FACILITIES DEMOLITION
- TERMINATE TEMPORARY EMPLOYEES, EXCEPT THOSE SUPPORTING MISSION-CRITICAL 
ACTIVITIES SUPPORTING THE WARFIGHTER
- IMPLEMENT A CIVILIAN HIRING FREEZE

7.  THESE STEPS WILL NOT SOLVE THE PROBLEM COMPLETELY.  WE WILL ONLY BE ABLE 
TO SUSTAIN CURRENT FLEET OPERATIONS.  WE WILL NOT BE ABLE TO SUFFICIENTLY 
MAINTAIN AND RESET OUR FORCES FOR FUTURE OPERATIONS.

8.  WITH A YEARLONG CR, THE POTENTIAL FOR CIVILIAN FURLOUGHS EXISTS, BUT ALL 
DECISIONS IN THAT REGARD WILL BE MADE AT THE DOD LEVEL.  WE WILL FOLLOW 
WHATEVER GUIDANCE WE RECEIVE.

9.  THIS GUIDANCE IS PROVIDED FOR YOUR INFORMATION.  SHORTLY, YOU WILL BE 
HEARING SPECIFICS FROM SERVICE LEADERSHIP ABOUT THEIR PLANS FOR THE AMOUNT OF 
THESE ADJUSTMENTS AND WHAT ACTIONS ARE BEING TAKEN TO LIMIT THE IMPACT ON OUR 
MILITARY PERSONNEL, CIVILIANS, AND FAMILIES.

10.  RELEASED BY RAY MABUS, SECRETARY OF THE NAVY.//

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