The FY2012 budget request for the Coast Guard totals $10.3 billion, down slightly (-$.1 billion) from the proposed FY2011 Continuing Resolution (CR) level. This total includes $8.68 billion in discretionary funding (to be appropriated by Congress) and $1.66 billion in mandatory funding (including retired pay). The priorities for the FY2012 Coast Guard budget, shown in its annual posture statement, are: 1) rebuilding Coast Guard assets; 2) sustain front-line operations; 3) enhance maritime incident prevention and response; and 4) support military families. Like the Department of Defense and other agencies, the Coast Guard has identified management efficiency savings and reallocated them to higher priorities and to maintain and improve operational readiness.
Operating expenses account for $6.82 billion of the discretionary budget, an increase of more than $250 million from the FY2011 CR level. These amounts fund Coast Guard operational activities worldwide, including personnel costs. The acquisition, construction, and Improvements discretionary request is $1.42 billion, a small decrease (-$100 million) from the FY2011 CR level. These amounts finance the acquisition of new assets and construction of new facilities and improvements to existing facilities. The request includes: $643 million for new vessels (including six Fast Response Cutters); $289 million for aircraft (including two HC-144A maritime Patrol Aircraft); and $187 million for infrastructure projects. The discretionary budget request also includes about $.44 billion for training, R&D, and payments into the retired health care fund. The FY2011 budget does not request funding for Overseas Contingency Operations (OCO), but assumes a transfer of $258 million from DoD to fund Coast Guard OCO activities.
The FY2012 request proposes a number of actions to achieve efficiencies and savings. The budget plans to decommission 4 ships, reduce program support, and implement a number of administrative savings initiatives. Among the administrative initiatives are management efficiencies to centralize purchasing and software licensing agreements, reduce shipping and transportation of things, reduce advisory and assistance contracts, consolidate office equipment, and limit use of commercial facilities. The Coast Guard also plans reduce professional services contracts and implement a 25 percent cut to non-operational travel (including travel for training and professional development). You can find details of the budget request in the FY2012 Coast Guard budget justification material.