Winter Leader Conference February 4, 2009 “ Building Strong “1 Creating the CW Budget Mr. Pete...
Transcript of Winter Leader Conference February 4, 2009 “ Building Strong “1 Creating the CW Budget Mr. Pete...
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Winter Leader Conference February 4, 2009 “ Building Strong “ 1
Creating the CW Budget
Mr. Pete LuisaMr. Pete Luisa2 March 2009 2 March 2009 PNWAPNWA
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• US Ports & Waterways convey > 2B Tons Commerce • Foreign Trade alone creates > $160 B Tax Revenues
Recreation areas 376 M Visitors/yrGenerate $15 B in economic activity,
500,000 jobs
11,000 miles of Commercial Inland
Waterways:½ the cost of rail1/10 the cost of
trucks
400 miles ofShore protection
8500 Miles of Levees
299 Deep Draft Harbors
EmergencyOperations
Stewardship of11.7 Million Acres
Public LandsEnvironmental
Restoration
627 Shallow Draft Harbors
Regulatory
¼ of Nation’s Hydropower: $500 M + in power sales
Civil Works Value to the NationCivil Works Value to the Nation
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CIVIL WORKS BUDGET FORMULATION
TRADITIONAL APPROACH: By account (Surveys and Design/Construction/O&M, etc.) Geographic balance considered Funding shortages spread across nearly all activities BUDGETING BY PERFORMANCE: By business program (navigation, flood, etc.) Funding distributed based on outcomes Highest priority work funded at an efficient rate Lower priority work may be deferred, even if already started
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PROGRAM STRUCTURE
Business LineNavigation Coastal harbors; Inland WaterwaysFlood Damage Reduction Riverine Floods; Coastal StormsEnvironment Aquatic Ecosystem Restoration Stewardship Formerly Utilized Site Remedial Action HydropowerRecreationWater SupplyEmergency Regulatory
AccountInvestigations Construction Operations & Maintenance Mississippi River & Tribs Regulatory Program Formerly Utilized Sites Remedial Action Program Expenses Flood Control & Coastal Emerg
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Budget Reviewed & Presented to SecArmy
(Jun - Aug )
OMB Passback( Nov )
Budget Submitted to OMB ( Sep )
President’s Budgetto Congress ( Feb )
All Offices DevelopProgram Requirements
( Feb - May )
Appropriations Bills( Jul - Sep )
Cong. Hearings ( Mar - Apr )
President Signs Approp. Bill ( Sep - Oct )
OMB-ASA GUIDANCE ( FEB-MAR )
Funding Alloc. To Field Offices
( Oct - Dec )
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FY 09 PROGRAM PROCESS
Use Performance Measures and Policy Direction Guidance memo to: · Rank competing investments in each business program · Demonstrate improved outcomes from added increments
Develop amounts based on their own internal performance metrics for: · GE; REG; FCCE; REC; ENV Stewardship; FUSRAP
Develop Performance Based program for project competing business lines: · Initial level (No new work, phases or contracts, previously budgeted projects only) · O&M at 75% of last 5 years budget; Investigations same as PY-1. · Categorize and Prioritize CG projects into Priority levels · Add Performance Base High Return items and increments for GI and O&M items
Add to the Highest Priority, ongoing projects & contracts to “Final Budget”
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Budgeting Measures
Construction
FRM & NAV & HYDRO - Benefit to Cost Ratio
FRM & NAV - Dam Safety & Seepage Stability
FRM – Construction Flood “Risk” Index
ENR - Loss prevention for significant natural resources
O&MNAV – Tonnage movements
FRM & NAV & HYDRO – “Risk” Assessments
ALLNew/Continuing/Completing/Years to Complete
Watershed Elements
ESA & compliance needs
Safety, Caretaker, Compliance, Subsistence
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PROGRAM COMPARISON($ millions)
FY08 Bud FY08 Appr FY09 Bud FY09 Appr Investigations 90 167 91 168Operation & Maintenance 2471 (2185) 2244 2475 2202Construction 1523 (1809) 2294 1402 2142Miss. River & Tribs. 260 387 240 384Regulatory Program 180 180 180 183Flood Control & Coastal Em. 40 0 40 0F.U.S.R.A.P. 130 140 130 140Expenses 177 175 177 179OASA(CW) (6) 5 6 4.5
Total 4871 5592 4741 5403
FY 2010 BUDGET DELIVERED TO CONGRESS AT $5.1 BILLION
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Budget Arithmetic
• FY09 Civil Works Budget Math $4,800 mil
• Allocate GE, REG, FCCE, REC, FUSRAP… - 900• Allocate Base O&M (~75% of required) - 1,800• Essential Dam Safety - 500• High Performing Construction - 400• Continuing Construction Contracts - 700• Planning Studies - 100
• Minimum Essential Allocation = - $4,400
• Left for all other CW Projects & Programs ~ $ 400 mil*• Use the $400 mil to restore project O&M to prior year levels
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CW Funding Through 09 Budget
$3,000
$3,500
$4,000
$4,500
$5,000
$5,500
$6,000
97 98 99 00 01 02 03 04 05 06 07 08 09 10
Thousands
Budget Request Final Approp.
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FY2009-11 Budgets and Appropriations
• Oct 08 – FY09 Continuing Resolution (CRA) to 6 Mar 09• Feb 09 – ‘American Recovery and Reinvestment Act’• Feb 09 – FY09 Appropriations Act• Mar 09 – ARRA & Appns Act funds issued to field offices• 26 Feb 09 – President presents FY10 Budget Overview• Mar 09 – HQUSACE releases FY11 Budget Guidance to
field offices• Spring 09 – FY10 Budget details released to public• Apr 09 – House/Senate FY10 Budget hearings • May/Jun – Defense Supplemental ?• Early-mid 2010 – Another possible Stimulus Bill?
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ARRA Breakdown by Account
SUMMARY OF APPROPRIATIONS
($Billions)• Investigations $0.025
Construction $2.000• O&M $2.075• MR&T $0.375• Regulatory $0.025• FUSRAP $0.100• TOTAL $4.600
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Stimulus Funding Information CW Eligible Projects
Account Number of Work Packages
Amount
(Millions)
Construction 3,600 $ 7,700
Ops & Maint 6,600 $ 7,000
MR&T 700 $ 700
Total 10,900 $15,400
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Economic Stimulus American Recovery and Reinvestment Act
• $4.6 billion for Corp programs• No cost sharing with Inland Waterways Trust Fund• No cost-share exemption from the HMTF or cost-
shared projects • Significant “transparency” requirements for tracking,
monitoring and reporting of specific metrics• Final selection of projects scheduled for approval in
mid Mar 09 with work allowances to Districts immediately following selection.
• All unobligated funds (except for E&D, S&A and claims) expire 30 Sep 2010.
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Stimulus-Project Selection Criteria
Project selection criteria from Conference Report:
(1) Obligated/executed quickly;
(2) Results in high, immediate employment;
(3) Will have little schedule risk;
(4) Will be executed by contract or direct hire of temporary labor; and
(5) Will complete either a project phase, a project, or will provide a useful service that does not require additional funding.
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Other ARRA Provisions
• Projects are eligible only if funded “heretofore or hereafter”
• Unlimited reprogramming authority• Up to 0.5% to administer the bill • NLT $200M for environmental infrastructure• Section 902 relief• Ceiling relief for Section 14, 205, 206 and
1135 Programs• Funds may be retained after 30 Sep 2010
expiration for E&D, S&A, Claims• WRDA Sec 9006 relief (levee survey limit)
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And for the Out Years …
• Expect a major debate on Federal funding priorities to commence with the FY 11 budget
• We will continue to place a high priority on accurate ‘capability’ estimates
• We will continue to place a high priority on execution of all that is appropriated
• We will seek to improve our budget ‘defense’ of the value to the nation of the water resources infrastructure for which we are responsible
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How We All Contribute
• USACE: – Develop the vision, goals, objectives in an open, collaborative way– Implement the Strategic Plan
• Administration: – “Walk the performance-based budget talk.”
• Stakeholders:– Contribute to vision, Goals, Objectives, Metrics
• ALL: Keep Communicating! - A Vision to be the desired future state of water resources and the desire to have a water resources infrastructure that will serve this Nation’s economic, quality of life needs, today and into the future.