FY2018 Budget Request

The Homeland Security “FY2018 Budget in Brief” has been published. You can see it in pdf form here.

The Coast Guard portion is on pages 44-48. The breakdown of the elements of the Coast Guard budget request are on page 47.

The total DHS budget request is $70,692,491,000. Of that, the Coast Guard portion is 15.1%. The DHS request is 7.1% greater than the FY2017 annualized continuing resolution. By comparison, the Coast Guard request is down 2.4%.

Highlights of the Coast Guard budget request noted include:

(“FTE refers to personnel changes. They are “Full Time Equivilents”)

  • Offshore Patrol Cutter (OPC) ……………………………………. $500.0M, 0 FTE Provides funding to begin construction of the first OPC, which is scheduled for delivery in 2021. The OPC will replace the Medium Endurance Cutter classes that conduct missions on the high seas and coastal approaches;
  • Fast Response Cutter (FRC)……………………………………….$240.0M, 0 FTE Funds procurement of four FRCs. These assets replace the less capable 110-foot patrol boats, enhancing the Coast Guard’s coastal capability to conduct Search and Rescue operations, enforce border security, interdict drugs, uphold immigration laws, prevent terrorism, and enhance resiliency to disasters;
  • Polar Icebreaker ……………………………………………………. $19.0M, 0 FTE Continues efforts toward awarding a contract for detail design and construction in 2019. This acquisition is recapitalizing the Coast Guard’s heavy polar icebreaker fleet;
  • Inland River and Western Rivers Tender ……………………….. $1.1M, 0 FTE Supports exploratory activities to analyze potential options to replace the capabilities provided by an obsolete fleet of inland tenders and barges commissioned between 1944 and 1990;
  • C-27J ………………………………………………………………… $52.0M, 0 FTE Funds support continued activities of the C-27J Asset Project Office (APO), which organizes logistics, training development, maintenance support, and ensures that these newly acquired aircraft are ready for induction into the operational fleet. Continues funding for initial spares and logistics, training, and mission system development;
  • Pay and Allowances……………………………………………….$109.8M, 0 FTE Maintains parity with DOD for military pay, allowances, and health care, and for civilian pay raise and retirement contributions, including providing a 2.1 percent military and 1.9 percent civilian pay raise in FY 2018. As a branch of the Armed Forces of the United States, the Coast Guard is subject to the provisions of the National Defense Authorization Act, which include pay and personnel benefits for the military workforce;
  • Operating and Maintenance of New Assets……………………$98.6M, 233 FTE Increases funding for operations and maintenance of shore facilities and provides sustainment funding for new cutters, boats, aircraft, and associated C4ISR subsystems delivered through acquisition efforts;
  • Mission Essential Systems and Cyber Security …………… ……$26.2M, 2 FTE Funds sustainment of critical Coast Guard network infrastructure and pays DOD working capital fund increases necessary to comply with DOD information network and cybersecurity requirements; and
  • Workforce Support Improvements ………………………………….$9.1M, 34 FTE Provides funding and personnel to manage the new Blended Retirement System, increase the frequency of Personnel Security suitability background investigations, and enhance capabilities to handle sexual assault allegations.

FY 2018 Major Decreases:

  • Decommissioning of Legacy Assets…………………………. ($14.1M) (129 FTE) Decommissions one 378-foot high endurance cutter, three 110-foot patrol boats, and one HC-130H aircraft in line with the Coast Guard decommissioning plan; and
  • Management and Support Efficiencies ………………………. ($13.9M) (13 FTE) Reflects savings generated from an enterprisewide efficiency review that can be taken with no direct operational impacts and a minimal loss of current service delivery

This is neither the disastrous cuts that were talked about earlier, nor is it a substantial boost. While less than the FY2017 budget as ultimately funded, it compares favorably to the initial FY2017 request. If the Congress does what it has done in the past, and adds some to the AC&I budget, we may feel this is a better than workable budget.

Compared to the enacted FY2017 budget, Operating Expenses are up $333,772,000 while AC&I is down $720,382,000. Hopefully the Congress will bump this up to nearer what we need annually, about $2B. I would be very surprised if the Congress does not increase the Fast Response Cutter buy from four to six, and NSC#10 and another C-130J are possibilities.

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