The FY2014 Coast Guard base budget request (included in the Department of Homeland Security budget) totals $9.8 billion. This is .6 billion less than enacted in FY2013 (excluding Overseas Contingency Operations and Hurricane Sandy supplemental funding).
The request includes $8 billion in discretionary funding (to be appropriated by Congress) and $1.8 billion in mandatory funding (including retired pay).
The priorities for the FY2014 Coast Guard budget, shown in its annual posture statement, are: build essential Coast Guard capability; strengthen resource and operational stewardship; and sustain the most critical front line operations.
Operating expenses account for $6.8 billion of the FY 2014 discretionary budget, essentially unchanged from FY2013. These amounts fund Coast Guard operational activities worldwide, including personnel costs.
The FY2014 acquisition, construction, and Improvements discretionary request of $0.9 billion ($0.5 billion lower than FY2013) finances the acquisition of new assets and construction of new facilities and improvements to existing facilities. These amounts finance the acquisition of new assets and construction of new facilities and improvements to existing facilities. The request includes: $743 million for new vessels (including the National Security Cutter NSC-7 and two Fast Response Cutters); $28 million for aircraft (including H-65 helicopter enhancements and C-130H avionics upgrades); and $60 million for other projects (including C4ISR systems and the Nationwide Automatic Identification System).
The discretionary budget request also includes about $.3 billion for training, R&D, and payments into the Health Care Fund.
The FY2014 Coast Guard budget proposes action to achieve efficiencies and savings and to allow for continuing investment in high priority programs. The budget plans to decommission two High Endurance Cutters (to be replaced by NSCs), retire eight HU-25 aircraft (to be replaced by HC-144As) and two HC-130Hs, and close two Seasonal Air Facilities. Funding for training programs and other areas of personnel support would be decreased in conjunction with workforce reductions. Among the Coast Guard enterprise-wide efficiencies proposed for implementation are: vehicle fleet mix optimization, travel and administration reductions, leased real estate consolidation, civilian temporary hiring cuts, and awards and incentives reductions.
The Coast Guard will also continue funding for the Financial Management Service Improvement Initiative (FMSII). This initiative will enable the migration of the current Coast Guard financial system to a shared service provider (SSP).
You can find details of the budget request in the FY2014 Coast Guard budget justification material.