Transcript SECNAV In-Brief September 2005

DoN Update
PB16 Overview; Fiscal Update
Rear Admiral William K. Lescher, USN
Director,
Management
Division,
DeputyFiscal
Assistant
Secretary of the Navy
for Budget N82
3 March 2015
Agenda
• President’s Budget 2016 – Overview
• Fiscal Landscape – FY15; PB16; POM 17
• Working with FMB – Principles
Office of Budget
2
3
The Foundation – Strategic Guidance
National
Security; Defense;
and Military Strategies
DoD
Strategic Guidance
Quad. Defense Rvw
CNO
CMC
SECNAV
People; Platforms
Power; Partnerships
CNO
CMC
Guidance
CS21R, EF21
Office of Budget
4
Office of Budget
5
Executing the Strategy – Operational Trends
CY 13 – Operational Employment
Planned Deployed Ships *
*Planned deployments historically address 45% of COCOM demand
CY 14 – Operational Employment
Planned Deployed Ships *
Office of Budget
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Office of Budget
7
Executing the Strategy – Resources
Department of the Navy Topline FY 2002-2020 (TY)
Total
Funding (TY)
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
FY13
$101.7 $126.3 $123.5 $133.6 $144.3 $151.6 $164.9 $166.8 $177.1 $176.8 $174.6 $163.1
FY14
$164.4
FY15
$159.3
FY16
168.0
FY17
FY18
FY19
FY20
Baseline
Funding (TY)
$101.7 $116.8 $118.4 $120.9 $127.9 $127.2 $139.2 $148.1 $156.1 $156.1 $158.3 $151.6
$150.2
$149.7
$161.0
$163.7
$165.0
64
67
67
66
65
50
51
53
53
46
47
49
50
$167.4 $167.7
180
160
26
180
120
100
80
39
$ in Billions (TY)
Billions of Dollars
140
10
170
160
44
5
17
54
40
20
140
33
59
52
64
70
65
65
60
167.7
14
7
10
59
59
164.3
161.0
38
43
FY 14
148.1
35FY 1536
37
35
36
37
37
40
FY 16
PB14
30
12
150
149.8
60
2
16
177.0
13
48
21
25
163.5
47
155.8
17
1 21
FY 17
PB16
38
40
42
42
FY 18
46
FY 19
47
48
47
46
50
44
45
45
46
FY 20
BBA / BCA
42
44
45
46
0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
MilPers
Numbers may not add due to rounding
O&M
Investment
OCO
OCO Req.
ARRA
SMOSF
Office of Budget
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Office of Budget
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Summary by Appropriation Group
FY 2016 DoN Base Budget
O&M: $50.4B
Ship Ops & Maint
Aviation Ops & Maint
Base Ops & Support
Marine Corps O&M
Combat/Weapons Support
Service Wide Support
Training and Education
Reserve O&M
Environmental Restoration
Mobilization
Navy: 32%
$12.6
$8.8
$7.6
$6.2
$5.6
$4.9
$1.8
$1.3
$0.3
$1.3
Navy: 23%
31%
28%
Ships
$16.6
Aircraft
$16.1
Weapons
$3.2
Marine Corps
$1.1
Ammunition
$0.8
Other Navy Procurement
$6.6
Navy: 31%
Marine Corps: 6%
Marine Corps: 27%
29%
MilPers: $46.0B
Basic Pays
Housing Allowance
Retired Pay Accrual
Health Accrual
Reserve Personnel
Subsistence
Allowances
Special Pays
Other
Procurement: $44.4B
FY16: $161.0B
$19.2
$7.7
$6.0
$2.0
$2.6
$2.3
$1.2
$1.6
$3.4
Marine Corps: 61%
11%
R&D: $17.9B
Basic Research
Applied Research
Advance Tech Dev
Adv Component Dev
System Dev & Demo
Management Support
Ops Systems Dev
1%
Infrastructure: $2.2B
MILCON
BRAC
Family Housing
Navy: 1%
= The percentage of each Service’s total budget applied to each appropriation group
$1.7
$0.2
$0.3
Marine Corps: 3%
Navy: 13%
Numbers may not add due to rounding
$0.6
$0.9
$0.7
$5.0
$6.3
$1.0
$3.4
Marine Corps: 3%
Office of Budget
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Balancing
Focused Investment
 Capacity; Capability; Readiness
 Quality of Service
 Nuclear Enterprise Review
 Cyber Capabilities
 Audit Readiness
Hard Choices
 High-end aviation
 Weapons procurement
 Facilities sustainment
Innovation and Reform
 Optimized Fleet Response Plan
 Crisis Response - SPMAGTF
 Energy security and resiliency
 Innovation Task Force
 Headquarters Reductions
 Pay and Compensation
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17
Fiscal Landscape
 FY15
•
•
•
•
Budget Execution
Funds Execution
Civilian Personnel Hiring Execution
Working Capital Fund Execution to Plan
Mid-Year Review
 FY16
•
•
•
•
Budget Defense
FMB Rollout Briefings
Posture Hearings
Budget Engagement Process Improvement
Engagement Going Forward – Impact Statements
 POM 17
•
•
Budget Formulation
Process – Moving toward Sequential POM/BES
PPBE Reset Teams
–
–
Data Reduction
Timelines
Office of Budget
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Working with FMB – FMB Principles
 FMB Role:
 Enforce High Standards in Budget Formulation and, working with FMO, in Execution
• Process Discipline
• Content Discipline
• Message Discipline
 Strive to say ‘Yes’
•
Within Standards
 Transparency; Fearless Communication
 Strong Coordination/Communication across all key stakeholders
Office of Budget
13
Back Up
Office of Budget
Budget Review Issue Adjudication
(PBCG Process Discipline)
•
FY16 Budget Hearings – aka Program Budget Coordination Groups (PBCGs) – will each
build on prior efforts to resolve issues at the SES Division Director level and lower
•
•
As such, PBCGs are not general discussion or exploratory discussion venues
PBCG’s are limited attendance Flag/SES-level decision forums that occur in the final stage of budget
development. Absent the presentation of specific and compelling data to the contrary, the program
mark will stand
•
•
•
•
Appealable to SECNAV (Large Group)
Places a premium on Principal attendee preparation. Be well-versed on the issue and prior resolution discussions
Strongly held opinions absent specific and compelling data are not the standard and will not be supported
Budget Hearing issue resolution is based on principles, not positions:
•
Outcome: Maximize executable budgetary support to SECNAV, CNO and Commandant priorities




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•
Realistic and balanced funding profiles and program schedules reflecting execution history.
•
Cost. Schedule. Performance.
Controls risk to DON TOA from OSD/OMB and congressional marks.
Requirements-driven... but the requirement itself is not the whole focus. If the program as structured is not fully
executable, the discussion emphasis is not the requirement – it’s the executability of the requirement as budgeted.
Fair. Not fair-shared.
Consistent with DON Leadership testimony. Supports clear and credible budget rollout testimony with integrity.
Process:
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Focused: Agenda-driven
Fact-based: Provide compelling new exhibits, revised calculations, updated obligation data for FMB to consider
Transparent and candid: Small nature of the PBCG forum allows frank and unencumbered discussion
Long-term perspective prevails over short-term focus
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Office of Budget
ASMC National Capital Region: Professional Development Institute
Speed Mentoring
Polaris Room 16:30
EDUCATION
TRAINING
PROFESSIONAL DEVELOPMENT16