UNCLASSIFIED U.S. Coast Guard Assistant Commandant for Resources Chief Financial Officer RDML Steve Metruck, USCG April 2, 2014 UNCLASSIFIED 1 4/19/2015

UNCLASSIFIED Agenda Fiscal Overview FY2015 Update FY2016 Coast Guard Budget Outlook Questions UNCLASSIFIED 2 4/19/2015

UNCLASSIFIED Budget Outlook Fiscal Environment: Fiscal environment is changing dramatically after 10 years of growth Budget Control Act of 2011 set discretionary funding caps thru 2021 Balance Budget Amendment (BBA) – Dec 2013 and extends BCA caps to 2023 Increased discretionary spending for FY2014 and FY2015 UNCLASSIFIED 3 4/19/2015

UNCLASSIFIED Diminishing Relief in FY15 FY16 Pressure Remains 2014 BCA years added by BBA 1 year } ~ 2% annual increase Federal Budget Outlook BCA Levels/BCA UNCLASSIFIED 4 4/19/2015

Top-line Funding Profile ($ in billions) * President’s Budget Request Note: For comparison purposes, does not include funding for Overseas Contingency Operations/Global War on Terrorism Funding ~3.6% average growth from FY03-12 For Internal Coast Guard Use Only – Budget Sensitive ~-1.7% average decline FY12-15

UNCLASSIFIED FY 2015 Budget Priorities Invest in Long-Term Operational Capacity Strengthen Resource and Operational Stewardship Preserve Critical Front-Line Operations UNCLASSIFIED 6 4/19/2015

UNCLASSIFIED FY15 Highlights Invest in Long-term Capability - $1.08B Key Highlights: In-Service Vessel Sustainment (CGC EAGLE, Ice Breaking Tugs, 47’ Motor Lifeboats) - $24.5M National Security Cutter #8 - $638M Offshore Patrol Cutter Initial - $20M Fast Response Cutter # $110M HC-27J Conversion/Sustainment - $15M HC-144A & HC-130J Sustainment - $45M C4ISR - $36.3M UNCLASSIFIED 7 4/19/2015

UNCLASSIFIED 8 4/19/2015 Coast Guard Assets

UNCLASSIFIED FY15 Highlights UNCLASSIFIED 9 4/19/2015 Strengthen Resource & Operational Stewardship Key Highlights: Decomm 2 High Endurance Cutters Decomm 8 110’ Patrol Boats Retire 3 HC-130 Aircraft HC-144A Programmed flight hours reduction Remove fixed wing B-0 requirement Coastal & Western River ATON Reductions Operational Efficiencies Efficiencies Reserve Training Reduction

UNCLASSIFIED FY15 Highlights Preserve Critical Front Line Operations Key Highlights: Provides $83 million for military and civilian pay, and military allowance; $72 million to operate new assets and infrastructure (National Security Cutter, HC-144A, Fast Response Cutters, Response Boat - Medium, Rescue 21). UNCLASSIFIED 10 4/19/2015

UNCLASSIFIED FY16 CG Budget Outlook PresBud (Blue) Enacted (Green) PresBud (Blue) Projected BBA (Green) Projected Topline Enacted Sequestered UNCLASSIFIED 11 4/19/2015

UNCLASSIFIED Questions? UNCLASSIFIED 12 4/19/2015

UNCLASSIFIED Back Up Slides UNCLASSIFIED 13 4/19/2015

UNCLASSIFIED FY Funding Profile UNCLASSIFIED 14 4/19/2015