How does Sequestration, Continuing Resolution (CR) and lack of Congress to pass a budget in 4 years affect our local area?

“This week at the AUSA (Association of the United States Army) Winter Symposium in Fort Lauderdale, GEN Sullivan and MG Spoehr, Director PA&E articulated the budget challenges facing the Army and the Department of Defense. . . We encourage you to engage your local, state, and federal officials to help them understand the devastating effects that these impending cuts will have on the U.S. Army and its ability to meet the requirements of the National Military Strategy.”
Michael Asada
President, AUSA
Arsenal of Democracy Chapter

By the Numbers:

Budget Control Act reduces the Army end strength
over 106,600 Soldiers and Civilians.

Sequestration doubles end strength reductions to
over ~200,000 total

• Every
  installation will be impacted
• Total
  Impact ~$15.35 Billion and 302,626 jobs

In Michigan Alone:

Jobs:

• 6,651 DA Civilians furloughed – loss of $40M in pay
• 950 private sector jobs lost from reduced military
  investments
• 2 jobs lost from decreased military construction
• 204 BOS contractor jobs impacted Base Operations:
  • ~$14M reduction Acquisition and Military Industrial
    Base Investments: ~$255M reduction Military Construction / Sustainment,Restoration
  • Modernization: ~$7M in projects cancellations

Locally affected are Selfridge ANGB, TACOM (Detroit Arsenal) and Military –Army Industry Partners such as General Dynamics and BAE.

To mitigate the near term compounding effects for FY 13, the Army is taking action by:

• Reducing the contracted workforce
• Terminating temporary employees and not extending term
  employees
• Implementing a hiring freeze
• Diverting all facilities restoration and modernization funds
• Cancelling 3rd and 4th quarter Depot Maintenance inductions
• Reducing Base Operations Support levels
• Cancelling collective and individual training

This is the impact to the economy, Soldiers and Families, and local communities affected by the Army’s annualized CR, sequestration and emerging budgetary shortfalls. This is an initial estimate of the near term impacts, not the impacts for the reduced funding in future years.

Currently:

• Domestic and social issues, while important, are “distracting” national leaders from recognizing the fiscal dangers to a credible national defense.
• The nation’s “fiscal processes” have been seriously disrupted (no budget in 3 years, uncertain FY13 budget passage, unknown length of current CR, etc.) creating “gross uncertainty.”

Unless resolved soon, the combined effects of an extended CR, inadequate funding, and sequestration will result in an Army that is unable to:

• Meet the requirements of the National Military Strategy
• Meet the needs of the Combatant Commanders
• Provide a rapid and sustained response to crises which are inevitable in the next 3-5 years.
• Modernization will be delayed – increases tactical, operational, and even strategic risk.
• Soldiers and Families will be impacted – places the stability of the All-Volunteer Force at risk.
• Confidence of our Allies will be degraded.
• Adversaries will be emboldened.

The Timeline facing the Congress and the Army

• March 1 –
  Sequestration – Automatic spending cuts that hit the entire Federal Government– half the cuts hit the Defense Department.

Sequestration –
Directed by the Budget Control Act of 2011 will have lasting impacts beyond FY14.

What Congress does
(or does not do) about that will inform what happens on...

• March 27 – CR expires – Federal Government is not spending FY13 dollars because Congress did not pass legislation implementing a FY13 budget.

Continuing Resolution - Ongoing CR is causing readiness challenges in FY13 which will overhang into FY14 (and potentially beyond).

What can you do to help?

Whether you are Active, National Guard,
Army Reserve, a Government Civilian, a Retiree, a Cadet, a Family Member or a
concerned civilian, AUSA speaks out on Capitol Hill on issues that directly
affect you.

Membership in AUSA can provide you with many benefits.

Join as a member of your local AUSA at http://ausaarsenalofdemocracy.org/
for as little as $14 a year for individual membership. Corporate memberships
are also available.

David Novak

VP Corporate Membership, AUSA

Arsenal of Democracy Chapter