Just a day after Defense Secretary Chuck Hagel proposed reductions in military end-strength and shrinking compensation costs as part of next year’s budget plan, a slate of nominees to lead key offices at the Pentagon faced congressional scrutiny.
On this week’s Capital Impact show, Bloomberg Government analysts discuss cuts made by Congress to the defense budget, and the winners and losers in this budget battle. January 23, 2014
Todd Harrison, senior fellow for Defense Budget Studies at the Center for Strategic and Budetary Assessments, will discuss how the defense industry is being impacted by sequestration. He will also give us an update on the U.S. military satellite communications system. August 30 & September 6, 2013
Michele Flournoy, the former undersecretary of defense for policy, says the time is ripe for the Department of Defense to look at its mission and how it motivates people to cut costs and reduce its overhead.
Todd Harrison, senior fellow for Defense Budget Studies at the Center for Strategic and Budetary Assessments, will discuss how the defense industry is being impacted by sequestration. He will also give us an update on the U.S. military satellite communications system. August 9, 2013
The top lawmakers on the Senate Armed Services Committee have called on the Defense Department to detail how it will cut billions more from its budget if sequestration continues into next year. In a letter dated May 2, Sens. Carl Levin (D-Mich.) and James Inhofe (R-Okla.), the chairman and ranking member, respectively, of the committee, asked Defense Secretary Chuck Hagel to provide a “package of reductions” to the department’s proposed 2014 budget.
DoD’s 2014 budget will ask Congress for a 1 percent increase in military pay, down slightly from previous projections.
Shortfalls in operating accounts would mean military units would be undertrained, underequipped and unable to deploy by the end of fiscal 2013, senior DoD officials predict.
Round one is already in effect and includes a civilian hiring freeze, cancellation of conferences, cutbacks on training, and a reduction in IT spending for the Navy. Round two would involve unpaid civilian furloughs, operational reductions for deployed ships, and cuts to tuition assistance for sailors.
DoD’s operations and maintenance accounts will likely be hit first if sequestration goes into effect. Unlike its procurement and research and development activities, which can continue to function on funds obligated in prior years, O&M dollars generally get spent right away. In preparation for sequestration, the Pentagon has already let go of tens of thousands of temporary hires and is drawing up a contingency plan for one-day-a-week furloughs. Deputy Secretary Ashton Carter says the unpaid furloughs would begin in April and continue through the remainder of the fiscal year if sequestration is not avoided.