The Federal government’s fiscal year comes to an end on September 30, and for the sixth straight time, lawmakers will need more time to figure out how they will pay the bills for next year. This is the ninth time in 11 years that Congress has looked to a temporary spending measure, called a Continuing Resolution (CR), to delay decisions on the nation’s funding priorities, 56 times in all since 2001. Last year’s budget debate required seven CRs and took until April to resolve. In August, House and Senate leaders agreed to a longer term approach, announcing that Congress would move forward with a six month package, pushing-off the decision on specific funding levels until after elections are over and a new Congress is sworn-in.
While the CR will allow the federal government to continue spending money into the new fiscal year, it also puts limitations on how that money can be spent, and those limits are especially acute for the Defense Department (DoD). DoD has enjoyed more than a decade of increasing budget top-lines and used those funds to address the changing needs of a force at war, but lawmakers were poised to cut defense spending next year for the first time since the terrorist attacks of Sept. 11, 2001. Instead, the CR, approved last week by the House and set for a vote this week in the Senate, will boost the base budget by more than a half-percent to $519 billion. Overseas Contingency Operations (OCO) would be funded at proposed fiscal year 2013 levels, a reduction of $26.5 billion.
As with any spending measure, there are winners and losers with the CR. Though Congress will provide DoD with more money than previously expected, the Department will lose some of its flexibility in spending it. The Navy is hit particularly hard by funding restrictions and policy caveats that could impact current operations, future readiness and long-term planning priorities.
USS Theodore Roosevelt undergoing a complex overhaul in 2011 at Newport News, Va. U.S. Navy Photo
At the top of the priority list for the sea service is the aircraft carrier USS Theodore Roosevelt (CVN-71). The 26-year old ship is in the final stages of a three-year-long maintenance and modernization period in Newport News, Virginia that the Navy calls a Refueling and Complex Overhaul (RCOH). By the time the TR sets back to sea in 2013, the ship will have new nuclear fuel in its two reactors, upgraded combat and communication systems throughout, and repairs will be made to the ship’s hull, mechanical and electrical systems to keep her viable until at least 2036. The process costs nearly $2.5 billion, but funding for the current phase will dry-up in less than 5 months unless Congress approves new spending for the work. So far, though, this year’s CR does not include funding to finish the overhaul.