DoD needs a real budget, not a partial fix.

• Author: Farrell, Lawrence P., Jr.
• Position: President's Perspective

As the budget standoff continues on Capitol Hill, it is almost certain that sequester soon will be upon the nation. Automatic, across-the-board budget cuts will affect discretionary spending government wide. But everyone wonders how it will all be sorted out.

Congressional leaders such as Rep. Paul Ryan, R-Wis., chairman of the House Budget Committee and Sen. Patty Murray, D-Wash., who chairs the Senate Budget Committee, have already stated that they expect sequester will happen. That these lawmakers--who are assumed to be key players in the middle of crafting a reasonable path forward--are saying outright that sequester is going to occur is truly astounding.

Right now, the military is suffering for two major reasons. The first one has to do with the impact of declining war spending, known as "overseas contingency operations." OCO has wound down, and the military has been trying to return certain budget items to the base budget.

Everyone knew this would happen as the rationale for what is funded in OCO and base budgets seemed quite flexible, and money could wash back and forth. The Defense Department now faces the inflexibility of operating under a continuing resolution because its fiscal year 2013 budget has not yet been approved by Congress. The military currently finds itself short of funds in its operations and maintenance (O&M) accounts.

To compensate, the service departments have placed draconian restrictions on O&M spending. For example, only critical travel is now permitted, temporary employees are to be let go, hiring freezes are in place and permanent civilian employees are to give up 22 paid workdays this year. Additionally, major maintenance for aircraft, ships and ground vehicles is anticipated to cease, as is the refueling of a Navy aircraft carrier.

This is just for starters and does not include the effects of sequester. When that happens, things will get much worse.

What the department needs is a real budget, not a continuing resolution. Only with a proper spending plan can the colors of money be properly programmed and O&M expenses addressed. The department has been anticipating an additional bill as the price for escaping sequester--perhaps another $10 billion per year. With a real budget in place, this would be workable.

Another consideration in this discussion is the state of the nation's economy. It has seen slow growth and extended periods of unemployment, currently at 7.9 percent. Concerns about the longterm picture...