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2013
National Association of Ordnance Contractors (NAOC)
General Membership Meeting
November 19 – 22
San Antonio, TX
FY 2014 Appropriations and Authorization
President's Budget
Defense Authorization
H.R. 1960
S.1197
Defense Appropriations
H.R. 2397
FY '14 Authorization & Appropriation Status
FUDS - $237,443,000
BRAC Combined Account - $451,357,000
ER - Army - $298,815,000
ER - Navy - $316,103,000
ER - Air Force - $439,820,000
House
Senate
Passed Subcommittee 5/23/13
Passed Subcommittee 6/11/13
Passed Full Committee 6/6/13 on a vote of 59-2
Passed Full Committee 6/13/13 on a vote of 23-3
Passed House 6/14/13 on a vote of 315-108
FUDS - $237,443,000
FUDS - $237,443,000
BRAC - $451,357,000
BRAC - $451,357,000
ER-Army - $298,815,000
ER-Army - $298,815,000
ER-Navy - $316,103,000
ER-Navy - $316,103,000
ER- Air Force - $439,820,000
ER-Air Force - $439,820,000
Does not authorize a new BRAC round
Does not authorize a new BRAC round
Full Senate to consider week of November 18th
Passed Subcommittee 6/5/13
Passed Subcommittee 7/30/13 on a voice vote
Passed Full Committee 6/12/13
Passed Full Committee 8/1/13 on a vote of 22-8
Passed House 7/24/13 on a vote of 315-109
FUDS - $287,443,000 (+50 million)
FUDS - $262,443,000 (+ $25 million)
ER-Army - $298,815,000
ER-Army - $298,815,000*
ER-Navy - $316,103,000
ER-Navy - $316,103,000
ER - Air Force - $439,820,000
ER -Air Force - $439,820,000
Does not fund/authorize a new BRAC round
Conference
FUDS BRAC ER-Army ER-Navy ER-Air Force -
FUDS ER-Army ER-Navy ER - Air Force
* Jackson Lee amendment decreasing ER-ARMY by $500K for
Defense Health Account was accepted on the floor ($298,315,000)
Milcon Appropriations
H.R. 2216
Continuing Resolution Debt
Ceiling Increase
H.R. 2775
Passed Subcommittee 5/15/13
Passed Full Committee 5/21/13
Passed House 6/4/13 on a vote of 421-4
BRAC - $451,357,000
Does not authorize a new BRAC round
Funds federal government until January 15, 2014
Passed House 10/16/2013 on a vote of 285 - 144
Funding levels determined by the agencies
Passed Subcommittee 6/18/13
Passed Full Committee 6/20/13 on a vote of 23-6
BRAC - $451,357,000
Funds federal government until January 15, 2014
Passed Senate 10/16/2013 on a vote of 81 - 18
Funding levels determined by the agencies
BRAC -
For FY 2014:
• House Appropriations Committee has passed 10 of 12 bills
• The Full House has passed 4 appropriations bills
–
–
–
–
Defense
Energy and Water
Homeland Security
Military Construction, Veterans Affairs and Related Agencies
• The Full House has passed the FY 2014 National Defense
Authorization Act
For FY 2014:
• Senate Appropriations Committee has passed 11 of 12 bills
• The Full Senate has passed 0 appropriations bills
• The Full Senate is considering the FY 2014 National Defense
Authorization Act this week. However as of this morning the
bill is stalled over a disagreement on the number of
amendments that will be accepted
FY 2014 Topline Numbers
The House and Senate are basing their respective appropriations bills on 2
different topline numbers.
The House Budget number is $967 billion
The Senate Budget number is $1.058 trillion
The Continuing Resolution passed on October 16th calls for the Budget Conference
Committee to come up with an agreement by December 13th. The House and
Senate Appropriations Chairs sent a letter to the Conference Committee asking
that they come up with a topline number by November 22nd.
It is also important to remember that as it stands now, sequestration will remain
in place for FY 2014 and beyond.
In NAOC’s October letter, we asked that the Congress:
– Resolve Country’s Fiscal Crisis
– Return to regular order
What is regular order?
•
President submits his Budget to Congress, which is due by the 1st Monday in February.
•
House and Senate draft and pass their own Budget Resolutions which are then conferenced. Under
regular order this should be completed by mid-April.
•
Spending allocations are made for the 12 Appropriations bills.
•
House and Senate Appropriations Committees, beginning at the subcommittee level, hold hearings
on Agency Budgets and then develop and pass the individual bills. This is generally done in the
June/July time frame.
•
Appropriations bills go to the House and Senate floors for consideration.
•
If there are differences in the two appropriations bills, they are sent to a Conference Committee to
reconcile the differences.
•
The conferenced bill is again voted on by the two chambers.
•
All 12 bills need to be completed by the end of the fiscal year on September 30th. If this does not
happen, then a Continuing Resolution (CR) is needed to keep the government running.
•
Completed bills are sent to the President who has 10 days to sign or veto the legislation. If he does
nothing, the bill becomes law after 10 days. If he vetoes it, it is sent back to Congress and requires
a 2/3rds vote in both chambers to override the veto.
Authorization
In regular order, before the appropriations process begins, the House and Senate
Armed Services Committees hold hearings on proposed budgets.
They then draft and pass authorization bills. Authorization legislation
establishes, continues, or modifies an agency or program, and authorizes the
enactment of appropriations for that purpose. This is where language about
policy changes is inserted.
Authorizations may be temporary or permanent, and their provisions may be
general or specific, but they themselves do not provide funding in the absence of
appropriations actions.
Defense programs must be authorized before the agencies are allowed to spend
appropriated dollars.
Committees of Jurisdiction
• House Armed Services
– Subcommittee on Readiness
• Senate Armed Services
– Subcommittee on Readiness and Management Support
• House Appropriations
– Subcommittee on Defense
– Subcommittee on Military Construction, Veterans Affairs and Related
Agencies
• Senate Appropriations
– Subcommittee on Defense
– Subcommittee on Military Construction, Veterans Affairs and Related
Agencies
What is preventing Congress from
returning to Regular Order?
• Divided government
• Leadership vs. Appropriations Chairs
• Different visions of what is “Good for the Country” both between
the 2 parties and within each of the parties
• 2014 is an election year
All 435 Members of the House and 34 Senators up for
election/reelection (21 Democrats and 13 Republicans)
QUESTIONS?