The Administration and Congress continue to work to resolve a series of across-the-board reductions in federal spending - collectively referred to as "sequestration." The information that follows explains the process and provides an overview of potential implications.
If sequestration occurs, it will reduce our budgetary resources for the remainder of the fiscal year (which runs through September 30). These cuts, while significant and harmful to our collective mission as an agency, would not necessarily require immediate reductions in spending. Under sequestration, we would still have funds available after March 1, but our overall funding for the remainder of the year would be reduced.
This situation is different from other scenarios we have encountered in recent years, such as threats of government shutdown due to a lapse in appropriations. For these reasons, day-to-day operations are not expected to change dramatically on or immediately after March 1, should sequestration occur. This means that we will not be executing any immediate personnel actions, such as furloughs, on that date. However, if we have to operate under reduced funding levels for an extended period of time, we will likely have to resort to an administrative furlough.
Other options to reduce costs within the agency will be examined before taking such action, taking into consideration our obligation to execute our core mission. Moreover, if such action proves to be necessary, affected employees will be provided the required advance notice before a furlough or other personnel action would occur. We would also immediately cancel any scheduled personnel actions should a deficit reduction agreement be reached that restores our agency funding. Please consult the following resources for more information:
- OBM Guidance (14 January 2013)
- Handling Budgetary Uncertainty in FY13 - DEPSECDEF Memo (10 January 2013)
- Secretary of Defense Leon E. Panetta guidance regarding ongoing fiscal cliff negotiations (20 December 2012)
- * Actions for Handling Budget Uncertainty in FY 2013 (10 January 2013)
- * Additional Guidance for Handling Budget Uncertainty (5 March 2013)
- * Preparations for Potential Sequestration on March 1 and Furlough Notifications (20 February 2013)
* denotes new documents.
This web page will be updated with additional information as it becomes available.