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U.S. Coast Guard U.S. Coast Guard Assistant Commandant for Assistant Commandant for

ResourcesResourcesChief Financial OfficerChief Financial Officer

RDML Steve Metruck, USCGRDML Steve Metruck, USCGApril 2, 2014April 2, 2014

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Agenda

•Fiscal Overview

•FY2015 Update

•FY2016 Coast Guard Budget Outlook

•Questions

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Budget Outlook

Fiscal Environment:• Fiscal environment is changing

dramatically after 10 years of growth• Budget Control Act of 2011 set

discretionary funding caps thru 2021• Balance Budget Amendment (BBA) –

Dec 2013 and extends BCA caps to 2023

• Increased discretionary spending for FY2014 and FY2015

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• Diminishing Relief in FY15• FY16 Pressure Remains

2014BCA years added by

BBA

1 year }~2% annual increase

Federal Budget Outlook

BCA Levels/BCA

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$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

Top-line Funding Profile($ in billions)

* President’s Budget Request

Note: For comparison purposes, does not include funding for Overseas Contingency Operations/Global War on Terrorism Funding

~3.6% average growth from FY03-12

For Internal Coast Guard Use Only – Budget Sensitive

~-1.7% average decline FY12-15

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FY 2015 Budget Priorities

Invest in Long-Term Operational Capacity

Strengthen Resource and Operational

Stewardship

Preserve Critical Front-Line Operations

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FY15 Highlights

Invest in Long-term Capability - $1.08BKey Highlights:

• In-Service Vessel Sustainment (CGC EAGLE, Ice Breaking Tugs, 47’ Motor Lifeboats) - $24.5M

• National Security Cutter #8 - $638M

• Offshore Patrol Cutter Initial - $20M

• Fast Response Cutter #31-32 - $110M

• HC-27J Conversion/Sustainment - $15M

• HC-144A & HC-130J Sustainment - $45M

• C4ISR - $36.3M

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Coast Guard Assets

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FY15 Highlights

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Strengthen Resource & Operational StewardshipKey Highlights:

• Decomm 2 High Endurance Cutters

• Decomm 8 110’ Patrol Boats

• Retire 3 HC-130 Aircraft

• HC-144A Programmed flight hours reduction

• Remove fixed wing B-0 requirement

• Coastal & Western River ATON Reductions

• Operational Efficiencies

• Efficiencies

• Reserve Training Reduction

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FY15 Highlights

Preserve Critical Front Line OperationsKey Highlights:

• Provides $83 million for military and

civilian pay, and military allowance;

• $72 million to operate new assets and

infrastructure (National Security Cutter,

HC-144A, Fast Response Cutters,

Response Boat - Medium, Rescue 21).

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$8,000,000

$8,250,000

$8,500,000

$8,750,000

$9,000,000

2012 2013 2013 2014 2015 2016

BBA

FY16 CG Budget Outlook

PresBud (Blue)Enacted (Green)

PresBud (Blue)Projected BBA

(Green)

Projected ToplineEnacted

Sequestered

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Questions?

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Back Up Slides

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FY 2013 - 2015 Funding Profile

Amount Amount Amount ∆ vs. FY 2014

Enacted % Change

6,627,936 6,784,807 6,750,733 (34,074) -0.5%

1,465,422 1,375,635 1,084,193 (291,442) -21.2%

12,461 13,164 13,214 50 0.4%Reserve Training 131,441 120,000 109,605 (10,395) -8.7%

19,639 19,200 17,947 (1,253) -6.5%Health Care Fund 201,610 185,958 158,930 (27,028) -14.5%Total Discretionary 8,458,509 8,498,764 8,134,622 (364,142) -4.3%

1,669,451 1,865,694 1,662,373 (203,321) -10.9%

(174,669) (153,338)Total Budget Authority 9,953,291 10,211,120 9,796,995 (414,125) -4.1%1

Includes ATBs, Sequestration, and Transfers. Does not include OCO or Supplmental funding.

2 Does not include OCO. 3 Mandatory Appropriations include Retired Pay, Gift Fund, Boat Safety, and Maritime Oil Spill Program.

Rescission of Prior Year FundingMandatory Appropriations3

FY 2015 President's Budget Comparison

U. S. Coast GuardFY 2015 President's Budget

(Dollars in Thousands)

Operating Expenses

Acquisition, Construction & Improvements

Appropriation/ PPA

RDT&E

FY 2013 Revised

Enacted1

FY 2014

Enacted2

Environmental Compliance & Restoration

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