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U.S. Coast Guard

Assistant Commandant for Resources Chief Financial Officer RDML Steve Metruck, USCG April 2, 2014

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Agenda

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Fiscal Overview

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FY2015 Update

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FY2016 Coast Guard Budget Outlook

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Questions

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Budget Outlook

Fiscal Environment:

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Fiscal environment is changing dramatically after 10 years of growth

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Budget Control Act of 2011 set discretionary funding caps thru 2021

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Balance Budget Amendment (BBA) – Dec 2013 and extends BCA caps to 2023

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Increased discretionary spending for FY2014 and FY2015

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Federal Budget Outlook

$1 400 $1 350 $1 300 $1 250 $1 200

BCA Levels/BCA

• • Diminishing Relief in FY15 FY16 Pressure Remains $1 150 $1 100 $1 050 $1 000 $950 2014 1 year } ~ 2% annual increase BCA years added by BBA $900 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Budget Control Act Spending Limit Sequestration Spending Limit Bipartisian Budget Agreement UNCLASSIFIED 4

Top-line Funding Profile

($ in billions) $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

* President’s Budget Request Note: For comparison purposes, does not include funding for Overseas Contingency Operations/Global War on Terrorism Funding

For Internal Coast Guard Use Only – Budget Sensitive

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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 - $1.08B

Key Highlights:

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

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National Security Cutter #8 - $638M

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Offshore Patrol Cutter Initial - $20M

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Fast Response Cutter #31-32 - $110M

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HC-27J Conversion/Sustainment - $15M

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

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C4ISR - $36.3M

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Coast Guard Assets

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FY15 Highlights

Strengthen Resource & Operational Stewardship Key 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 4/25/2020 UNCLASSIFIED 9

FY15 Highlights

Preserve Critical Front Line Operations Key Highlights:

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Provides $83 million for military and civilian pay, and military allowance;

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$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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FY16 CG Budget Outlook

$9,000,000 $8,750,000 $8,500,000 $8,250,000 $8,000,000 2012 2013

Enacted

2013

Sequestered

2014

PresBud (Blue) Enacted (Green)

2015

PresBud (Blue) Projected BBA (Green)

2016

Projected Topline 4/25/2020 UNCLASSIFIED 11

Questions?

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Back Up Slides

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FY 2013 - 2015 Funding Profile

U. S. Coast Guard FY 2015 President's Budget

(Dollars in Thousands)

FY 2013 Revised Enacted 1 FY 2014 Enacted 2 FY 2015 President's Budget Comparison Appropriation/ PPA Amount Amount Amount Operating Expenses Acquisition, Construction & Improvements 6,627,936 1,465,422 6,784,807 1,375,635 Environmental Compliance & Restoration Reserve Training RDT&E Health Care Fund Total Discretionary 12,461 131,441 19,639 201,610 8,458,509 13,164 120,000 19,200 185,958 8,498,764 Mandatory Appropriations 3 Rescission of Prior Year Funding 1,669,451 (174,669) 1,865,694 (153,338) Total Budget Authority 9,953,291 10,211,120

1 Includes ATBs, Sequestration, and Transfers. 2 Does not include OCO. Does not include OCO or Supplmental funding.

3 Mandatory Appropriations include Retired Pay, Gift Fund, Boat Safety, and Maritime Oil Spill Program.

6,750,733 1,084,193 13,214 109,605 17,947 158,930 8,134,622 1,662,373 9,796,995 ∆ vs. FY 2014 Enacted (34,074) (291,442) 50 (10,395) (1,253) (27,028) (364,142) (203,321) (414,125) % Change -0.5% -21.2% 0.4% -8.7% -6.5% -14.5% -4.3% -10.9% -4.1%

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