Captain's Call Kit on Budget -- Updated April 4, 2013


Story Number: NNS130207-23Release Date: 2/7/2013 3:50:00 PM
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From Navy Office of Information

WASHINGTON (NNS) -- As the Navy and Department of Defense continue to navigate difficult budgetary challenges, it is exceedingly important that Navy leaders do all they can to ensure their people are as well informed about what it all means to them. The information and links below provide commanding officers with background information they can use to speak frankly with their people on these issues.

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1. Budget Guidance
2. Furlough Update and Talking Points
3. CNO Blog: Budget, Moving Forward
4. Fiscal Year 2014 Budget Guidance

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1. BUDGET GUIDANCE (ADDED APRIL 4)

Piggy-backing on Tuesday's note on furloughs and in response to questions from around the fleet, below is the latest guidance on the current budget situation.

Last week, CNO shot a budget video (http://cno.navylive.dodlive.mil/2013/04/01/budget-moving-forward-2/) and outlined similar information during a Navy Times editorial board. To help with your communication efforts, we've provided the CNO's priorities amid the ongoing assessment of fiscal impacts to our fleet and force and what the budget means to our Sailors, Civilians and Families.

CNO Budget Priorities:

- The new defense appropriations bill reduced the projected budget shortfall by half. A $10B gap remains in our funds. Due to this deficit we must scrutinize our assets. To do so, decisions need to be made on what we can keep, what can be rebalanced and which ship and aircraft maintenance can be deferred. The bill also granted us authority to reprogram our funds. We are examining the best application of these funds.

- We will restore the Global Force Management Plan. Together with the Combatant Commanders and the Joint Staff, we will reconcile our FY13 operations, determine the appropriate amount of the allocation plan that can be restored and what is reversible.

- Prepare to meet FY14 missions. This year's maintenance and training are for the readiness of next year's war fighters.

- Restore and modernize the fleet -- we are working to restore the required base operations support that we feel is appropriate, whatever restoration and modernization projects we think are necessary and are focusing on safety and repairs, port ops, aircraft operations, flight ops, etc.

CNO on Benefits and Furloughs:

- "TA is still at 100 percent, and I'm working to keep it at that level, that's where I think we need to be. I think it is a pretty good program when properly managed and I want educated sailors."

- Civilians will be furloughed for 14 days, a decrease from the original plan of 22. SECNAV and I are working with DoD staff through this process and we will try to keep the furloughs as low as feasible.

- For our Sailors, your pay will remain stable; our manpower accounts have been consistent throughout this turmoil. We're going to get our family readiness programs and MWR programs back on track. PCS should continue at pace.

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2. FURLOUGH UPDATE AND TALKING POINTS (ADDED APRIL 3)

As There's a strong desire for guidance on furloughs, especially with Secretary Hagel's announcement last week of a planned reduction in furlough days from approximately 22 to 14 days. Here are our latest talking points on furloughs -- OCHR will coordinate with your personnel offices to ensure they have the latest guidance as well.

- Despite DON efforts to address current and projected budget reductions, fiscal challenges will likely require administrative furloughs of approximately 94 percent of the Navy's more than 200,000 civilian employees.

-It appears sequestration will require up to 112 hours, or approximately 14 furlough days, by the end of the fiscal year, reduced from the original estimate of ~22 furlough days.

-This will result in ~20 percent reduction in base and locality pay for the remainder of the fiscal year and thirty days notice to employees is required.

-The civilian workforce is incredibly talented and dedicated -- Navy leadership recognizes the impact of the furloughs on the civilian workforce and their families.

- Employee furloughs create significant financial hardship for men and women dedicated to public service -- more than 50 percent of whom are veterans -- and adversely impact the Navy's ability to retain a skilled and talented workforce.

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3. CNO BLOG: BUDGET, MOVING FORWARD (ADDED APRIL 1)

http://cno.navylive.dodlive.mil/2013/04/01/budget-moving-forward-2/

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4. Fiscal Year 2014 Budget Guidance

Until the President's budget for Fiscal Year 2014 is submitted April 10, information about the Department of the Navy's 2014 budget submission is considered pre-decisional and should not be discussed. If you have any questions or concerns contact the CHINFO News Desk.

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