Navy Budgets

Not everyone digs through the budget, and many of you read here so you don't have to. No worries, we always seem to get through it.

This year it feels very odd, as Congress has not even passed the FY2011 budget and here we are looking at the Presidents request for FY2012. The most important thing right now is getting the Fiscal Year 2011 budget passed. This is important, and folks are out of excuses. Tim Colton has a letter from VADM John Blake that outlines the damage the Continuing Resolution has already done - see the link in the section "No Money, The Navy Pulls Back" for a PDF copy of the following letter:

Subject: CR Direction

ALCON,
1. Appreciate the rapid and well staffed inputs provided from all hands to prepare decisions for the CNO to mitigate the impacts stemming from the $4.6B OMN shortfall. The CNO was briefed on impacts as articulated by each BSO and your plans including a detailed set of actions and recommendations by month. He concurs with your actions as proposed for February and March as detailed below. N8 & FMB will continue to work with you on the recommendations for implementation in April and beyond.

2. The CNO concurs with the following specific actions:
a. Feb:
- Terminate SQUALL & THUNDERBOLT Avails (Norfolk, Started 10/5/2010,
$5.5M ea)
- Cancel GUNSTON HALL Avail (Norfolk, 4/13/2011 start, $11.9M)
- Cancel UNDERWOOD Avail (Mayport, 4/13/2011 start, $5.5M );
- Defer four February Start Shore Projects (Clear Zone - Meridian, MS;
Ammo Pier - Kadena, JA; 2x BEQ Renovation - Pt Magu, CA) ($11.9M)
- Cancel one Cat 5 deployment ($5.8M) (NITZE) b. Mar:
- Cancel PELELIU Avail (San Diego, 5/4/2024 start, $24.7M)
- Cancel GONZALES Avail (Norfolk, 5/11/2024 start, $5.1M)
- Cancel FARRAGUT Avail (Mayport, 5/11/2024 start, $4.2M)
- Cancel three Cat 5 deployments ($9.2M) (IWO JIMA, CARR, JOHN L HALL)
- Reduce deploying CVW 1st month FHs to 55% vice 70% T&R and continue
FHP/CVW adjustments as FFC and PACFLT proposed
- Defer 15 Shore Projects with projected Mar start dates ($80M)

Additionally, the CNO directed the following actions:

- FFC/PACFLT: Notify affected contractors of intent to cancel ship avails in writing NLT than next Tuesday (2/8), well in advance of the 45 day cutoff date that, "barring an appropriations bill passage which adequately resources the Navy's FY11 PB OMN request, the Navy intends to cancel these availabilities on (date)". Please pass copies of the letters to FMB and FMBE. Additionally, request you advise your Navy Component Commanders to keep their respective COCOMs informed of OPS changes, steaming day adjustments and your selection of airwings that will reduce their T&R performance.
- CNIC: To the extent possible -- contingent if a contractor has been selected for specific projects, notify the effected special project contractors, in writing, that the Navy intends to defer those projects originally scheduled in Feb and Mar until an appropriations bill which adequately resources the Navy's FY11 PB OMN request is passed -- also pass copies of your letters to FMB and FMBE.

This is going to get very ugly if the folks on Capitol Hill don't get their work done soon.

As for Fiscal Year 12, the full list of items is here. Most of you will only be interested in a handful of items like the FY12 Budget Overview (PDF), the FY12 Budget Press Brief (PDF), and the Budget Highlights Book (PDF).

Have fun folks, there is plenty to read for the next few months.