$ equestration & DoD Presented to the CSSC By Lisa Swoboda, Deputy Director Maryland DBED Office of Military Affairs 13 September 2012

What is $ equestration? O A process requiring mandatory across-the- board spending cuts divided equally between non- defense and defense spending. O The Super Committee: tasked with finding at least $1.2 trillion in spending cuts; if failed, sequestration is adopted. O Effective date 01/02/13 if lawmakers don’t reach agreement on how to pass the debt- reduction package by 31 December.

“Draconion” Impacts “It's going to hollow out our force and it's going to weaken our defense system.” – SECDEF, 09/11/12 O $487B in cuts already implemented O Sequestration would increase DoD cuts to 18% of total budget O Additional personnel cuts to civilian workforce O Program cuts, could lead to mission loss

Living with Uncertainty O Consolidation inevitable O Spending slowdown O Vulnerability in private sector job market O Global repositioning O Ever changing face of the battlefield

Altering the Outcome O Lots of Discussion! But Action? O Propose bill to be adopted after the election by both Chambers that would delay sequestration by 3 months O Add language to the Continuing Resolution that would delay for up to 2 years O Come to agreement on the cuts O Sequestration Transparency Act of Requires the President, within 30 days after the enactment of this Act, to submit to Congress a detailed report on sequestration implementation

Any good news? “As we reduce the overall defense budget, we will protect our investments in special operations forces, new technologies like ISR and unmanned systems, space and cyberspace capabilities and our capacity to quickly mobilize…” - Secretary Panetta, 01/2012 O APG, Ft. Meade, Ft. Detrick, Patuxent River NAS,… O Maryland partially protected by uniqueness in hosting top mission priorities O Well positioned for growth