Below I have duplicated the Coast Guard’s FY2020 Budget “Fact Sheet”. You can see supporting documents here. My comments are at the bottom.

U.S. Coast Guard Fact Sheet

Fiscal Year 2020 President’s Budget  

BACKGROUND: The FY 2020 President’s Budget requests $11.34 billion for the Coast Guard, including $9.32 billion in discretionary funding.  This begins to address the Service’s erosion of readiness through critical investments in the workforce, cybersecurity, and depot maintenance of legacy assets and infrastructure.  The Budget also supports the Service’s highest priority acquisition, the Offshore Patrol Cutter (OPC), and continues recapitalization efforts for capital assets and infrastructure.

BUDGET PRIORITIES:

• Maximize Readiness Today and Tomorrow—increasing global complexity and expanding demand for Coast Guard services necessitates investment in the workforce, assets, and infrastructure to address the erosion of Service readiness.   
• Address the Nation’s Complex Maritime Challenges—as the Nation’s unique instrument across the full spectrum of maritime operations, the Budget invests in capabilities and capacity to detect, deter, and counter maritime threats in support of homeland security and defense operations.
• Deliver Mission Excellence Anytime, Anywhere—the Coast Guard is an agile and adaptive force whose greatest value to the Nation is an ability to rapidly shift among its many missions. The Budget advances modernization efforts in both operations and acquisitions by adapting to the dynamic nature of maritime operations.

MAXIMIZE READINESS TODAY AND TOMORROW: The FY 2020 Budget requests $7.9 billion for Operations & Support (O&S).  Budget highlights include: 

• $118 million for requisite military pay and allowances as per the FY 2019 National Defense Authorization Act requirements, which keeps DoD and Coast Guard military members compensated equitably, as well as providing civilian benefits and retirement contributions.
• $59 million for new assets including: crew and shore-side support for NSC #9; operations and maintenance for FRCs #37-41; crews for FRCs #39-43; shore-side maintenance personnel for FRC homeports; crew for OPC #1; maintenance support personnel for the C-27J fleet; and operations, maintenance, and flight crews for HC-130J aircraft #12. 
• $27 million for human capital support infrastructure, and vessel, aircraft, and C5I maintenance funding to address spare parts inventory shortfalls that have led to decreased operations and lower readiness levels due to unplanned repairs. 
• $22 million for the final phase of Federal Aviation Administration (FAA) compliance upgrades, including the replacement of obsolete aircraft equipment and systems necessary to meet 2020 airspace requirements.

ADDRESS THE NATION’S COMPLEX MARITIME CHALLENGES: The FY 2020 Budget requests $1.2 billion for Procurement, Construction, & Improvements (PC&I) to continue recapitalization of the Service’s highest priority acquisitions: 

• $792 million for vessels, including: $457 million for the construction of Offshore Patrol Cutter (OPC) #3 as well as long lead time materials for OPCs #4 and #5; $140 million for the procurement of two Fast Response Cutters (FRCs); $60 milllion for post-delivery activities for the seventh through eleventh National Security Cutters (NSCs); $35 million for program management and production activities associated with the detail design and construction contract for Polar Security Cutters (PSCs); and $15 million for a multi-year Service Life Extension Project (SLEP) for POLAR STAR. 
• $200 million for aircraft, including: $20 million to support service life extensions for MH-60T helicopters; $50 million for a service life extension and avionics upgrade on the H-65 helicopter fleet; $120 million for missionization of fixed-wing HC-27J and HC-144A aircraft; and $9 million for small unmanned aircraft systems (sUAS).
• $174 million for shore infrastructure projects, including funding for: utility upgrades and construction at Air Station Ventura, CA; improvements at Station Tillamook Bay, OR; replacement of moorings at Station Siuslaw River, OR; and facility upgrades and construction to support FRC and OPC homeports.

DELIVER MISSION EXCELLENCE ANYTIME, ANYWHERE: In FY 2020, the Coast Guard will make sound, riskbased decisions to efficiently allocate resources while investing in critical recapitalization initiatives.  Highlights include: 

• $15 million to address obsolete communications equipment on cutters, aircraft, and shore facilities to ensure continued interoperability with DoD Combatant Commanders (COCOMs) in theater, as well as in the high latitudes, and during disaster response.
• $12 million in savings associated with the planned decommissioning of one High Endurance Cutter (WHEC) and three 110foot Patrol Boats (WPBs).  These assets are being replaced by new, more capable NSCs and FRCs, respectively.

My Commentary: 

The $118M quoted above for military pay and allowances is to fund the pay increase not the full amount of pay and allowances.

The top line amount in the budget request, $11.34B, is roughly $770M less than the final FY2019 budget and about $860M less than the FY2018 budget as enacted. Fortunately Congress has usually made additions to the request, but this request is also less than last year’s request.

The big difference, more than $1B, is in the Procurement, Construction, and Improvement account. Amounts requested for Ships and Boats, Aircraft, and Shore-side Infrastructure are all lower. The $1.2B total is little more than half the approximately $2B/year the Coast Guard has been saying they need.

Items missing in the description of the budget that might have been expected, are a second “Polar Security Cutter” (better to do it in 2020 when we are not trying to also fund two OPCs), the Waterways Commerce Cutter, any additional HC-130J aircraft, and a land based Unmanned Air System. The procurement of only two Fast Response Cutters is below the optimum build rate and appears to have resulted in higher unit costs.