Potential Effects on Defense Spending of a Year-long Continuing Resolution and the March 2013 Sequesters
Abstract
This memorandum addresses concerns raised by Department of Defense and others that a year-long CR and a sequester could seriously compromise military readiness and cause significant disruption to defense investment programs. To address these concerns, this memo analyzes potential effects on Operation & Maintenance (O&M) funding, which supports military readiness, and Procurement, which funds investment in weapon systems, of a strict year-long CR and the March sequesters. In addition, the memo explains effects on the other major types of DOD spending for military personnel, military construction, and Research, Development, Test & Evaluation (RDT&E). Secretary of Defense Panetta has argued that the Department of Defense (DOD) faces what he called a perfect storm of budget uncertainty about funding levels for FY2013 from the potential combination of a year-long continuing resolution that links defense spending levels to FY2012 enacted levels and about a 9% across-the-board sequester applied to affected accounts slated to occur in March 2013. Under the current FY2013 Continuing Resolution or CR (H.J. Res 117/P.L.112-175), national defense (budget function 050) spending would be $556.9 billion, or $6.3 billion above the FY2013 request. At the same time, however, the FY2013 CR links specific funding at the account level to amounts provided in the FY2012 enacted appropriations acts. In some cases, FY2013 CR levels are above those in the request, and in other cases below those in the FY2013 request, which creates several significant misalignments in spending levels. With the exception of the military pay raise, the FY13 CR does not reflect congressional action on either the FY2013 National Defense Authorization Act (P.L.112-239) enacted on January 2, 2013, or in FY2013 House and Senate appropriations action.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 07, 2013
- Accession Number
- ADA573863
Entities
People
- Amy Belasco
Organizations
- Library of Congress