FY13 Quick Analysis

The President released the FY13 defense budget request today, and the total amount is $5B less than the FY12 appropriated levels. We've put out a one-pager providing some quick context and analysis.  Highlights include:

• By sticking to security/non-security caps and letting defense spending exceed the Budget Control Act’s budget function 050 cap, the administration is providing a carrot to accompany the stick of sequestration to tempt Congress into undoing the caps as written. 
• If Congress agrees to the security/non-security divide, International Affairs, which receives a $4B increase in the President’s request, looks like a fat target to reallocate funding to defense. 
• The Pentagon is taking advantage of OCO being exempted from the caps to claim all military personnel costs above the endstrength goals of 490K for the Army and 180K for the Marines are temporary, and thus are funded in OCO not base funding. 
• However, the administration is also trying to move enduring O&M costs into the base budget.  Of a $12B increase in O&M funding over FY12, $10B goes to accounts –like depot maintenance and steaming days and flying hours—that are receiving less OCO funding. 

To read the full analysis, click here.