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Search Tags: sequestration
Agencies across government should intensify their planning for across-the-board sequestration cuts, according to a Jan. 14 memo to the heads of executive department and agencies from Jeff Zients, the acting director of the Office of Management and Budget. The memo comes on the heels of similar guidance issued last week by the Defense Department. Meanwhile, the Navy warned of the threat of reduced funding from a short-term spending measure.
Like Hollywood superheroes, federal workers managed to escape going over the fiscal cliff. But coming up in this regular mini-series is a possible shutdown because of the White House-Congress fight over the debt limit. If you survive that, there is the sequestration time bomb that is ticking and due to go off in March. Other than that, have a nice day.
The Air Force orders commanders to start cutbacks in advance of the next budget emergency.
The nation's top military leaders warned Congress in unusually stark terms that its failure to pass a 2013 defense budget - coupled with the threat of automatic budget cuts - has pushed the Pentagon to the brink of a crisis.
Robert Work, the undersecretary of the Navy, says forget about the Reagan-era aspirations of a 600-ship fleet. Even with a smaller Navy, things are better than ever, he says, even if they're about to get worse due to smaller budgets and the threat of sequestration. "Yes, things might get worse. In fact, they probably will get worse. But this is the heyday of the U.S. Navy. And, if you're not excited, you ain't breathing," he said at the Surface Navy Association's annual symposium this week.
The Army has put an immediate freeze on civilian hiring and will begin terminating some temporary employees to reduce spending ahead of potential across-the-board budget cuts later this year. Army Chief of Staff Ray Odierno and Army Secretary John McHugh also directed Army commanders and supervisors to reduce base-operations support spending.
Guidance from the administration on what steps federal agencies should take to prepare for potential across-the-board budget cuts has set off a war of words between federal-employee unions and industry groups. The American Federation of Government Employees says guidance exempts contractors at the expense of federal employees, but industry groups say the criticism is misguided.
The Defense Finance and Accounting Service will implement significant cost-cutting measures next week to prepare for the possibility of automatic spending cuts due to hit government in March. DFAS plans to freeze most hiring, reduce travel and overtime, and temporarily halt new employee performance awards, according to DFAS Director Terri McKay.
DoD's operations and maintenance accounts will likely be hit first if sequestration goes into effect. Unlike its procurement and research and development activities, which can continue to function on funds obligated in prior years, O&M dollars generally get spent right away. In preparation for sequestration, the Pentagon has already let go of tens of thousands of temporary hires and is drawing up a contingency plan for one-day-a-week furloughs. Deputy Secretary Ashton Carter says the unpaid furloughs would begin in April and continue through the remainder of the fiscal year if sequestration is not avoided.