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Mr. Pete Luisa 2 March 2009 PNWA. Creating the CW Budget. Civil Works Value to the Nation. 299 Deep Draft Harbors. 627 Shallow Draft Harbors. Recreation areas 376 M Visitors/yr Generate $15 B in economic activity, 500,000 jobs. Emergency Operations. 8500 Miles of Levees. - PowerPoint PPT Presentation
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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
Winter Leader Conference February 4, 2009 “ Building Strong “ 2
• 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
Winter Leader Conference February 4, 2009 “ Building Strong “ 3
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
Winter Leader Conference February 4, 2009 “ Building Strong “ 4
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
Winter Leader Conference February 4, 2009 “ Building Strong “ 5
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 )
Winter Leader Conference February 4, 2009 “ Building Strong “ 6
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”
Winter Leader Conference February 4, 2009 “ Building Strong “ 7
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
Winter Leader Conference February 4, 2009 “ Building Strong “ 8
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
Winter Leader Conference February 4, 2009 “ Building Strong “ 9
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
Winter Leader Conference February 4, 2009 “ Building Strong “ 10
CW Funding Through 09 Budget
$3,000
$3,500
$4,000
$4,500
$5,000
$5,500
$6,000
97 98 99 00 01 02 03 04 05 06 07 08 09 10
Thousands
Budget Request Final Approp.
Winter Leader Conference February 4, 2009 “ Building Strong “ 11
FY2009-11 Budgets and Appropriations
• Oct 08 – FY09 Continuing Resolution (CRA) to 6 Mar 09• Feb 09 – ‘American Recovery and Reinvestment Act’• Feb 09 – FY09 Appropriations Act• Mar 09 – ARRA & Appns Act funds issued to field offices• 26 Feb 09 – President presents FY10 Budget Overview• Mar 09 – HQUSACE releases FY11 Budget Guidance to
field offices• Spring 09 – FY10 Budget details released to public• Apr 09 – House/Senate FY10 Budget hearings • May/Jun – Defense Supplemental ?• Early-mid 2010 – Another possible Stimulus Bill?
Winter Leader Conference February 4, 2009 “ Building Strong “ 12
ARRA Breakdown by Account
SUMMARY OF APPROPRIATIONS
($Billions)• Investigations $0.025
Construction $2.000• O&M $2.075• MR&T $0.375• Regulatory $0.025• FUSRAP $0.100• TOTAL $4.600
Winter Leader Conference February 4, 2009 “ Building Strong “ 13
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
Winter Leader Conference February 4, 2009 “ Building Strong “ 14
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.
Winter Leader Conference February 4, 2009 “ Building Strong “ 15
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.
Winter Leader Conference February 4, 2009 “ Building Strong “ 16
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)
Winter Leader Conference February 4, 2009 “ Building Strong “ 17
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
Winter Leader Conference February 4, 2009 “ Building Strong “ 18
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.