$equestration & DoD

Presented to the CSSCBy Lisa Swoboda, Deputy Director

Maryland DBED Office of Military Affairs13 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 implementedO Sequestration would increase DoD cuts to

18% of total budgetO Additional personnel cuts to civilian

workforceO Program cuts, could lead to mission loss

Living with Uncertainty

O Consolidation inevitableO Spending slowdownO Vulnerability in private sector job

marketO Global repositioningO 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 2012 - 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 prioritiesO Well positioned for growth