Department of Defense Budget Update to the Virginia Ship Repair Association. RDML (ret) Joe Carnevale Senior Defense Advisor 20 September 2011. DoD Budget Update. Budget Control Act of 2011 The Peace Dividend Fiscal Year 2012 Budget. Budget Control Act of 2011 What Does It Do?.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
RDML (ret) Joe Carnevale
Senior Defense Advisor
20 September 2011
Increases the debt limit by $400B immediately.
Cuts $917B over 10 years with $21B in FY12.
President can request additional increase of $500B this year.
Congress may disapprove.
President may veto Congressional disapproval.
Congress may override veto with two-thirds majority.
President may request an additional $1.2-1.5T next year.
If matched by budget cuts generated by the “super committee” and enacted by Congress,
Or a Balanced Budget Amendment is passed by Congress and sent to the states.
Subject to the disapproval/veto/override provisions above.
Cuts generated by the Joint Select Committee on Deficit Reduction.
Goal of $1.5T over 10 years.
Propose by 23 Nov 11 and enact by 23 Dec 11.
Up or down vote, no amendments, no filibuster.
Balanced Budget Amendment
Congress must vote on it before 31 Dec 11.
Not required to pass to support debt limit increase.
Sequestration if cuts are less the $1.2T
Equal, across the board cuts to Security and Non-Security programs to get to $1.2T.
Cuts apply to Medicare but not Social Security.
Status: Proposed vs PB vs $525B Cap
Note: Give or take a billion or two.
Occurred in the early 90’s.
Last major cut in Defense spending.
Result of the collapse of the Soviet Union.
What was cut?
What can we learn from it?
Soviet troops withdraw from Afghanistan,
Poland & Hungary become independent,
Berlin Wall falls,
Governments fall in Czechoslovakia, Bulgaria, and Rumania;
Soviet empire ends
Warsaw Pact ends,
The Soviet Union dissolves,
The Cold War Ends
1990: Germany reunited
Total Federal Budget Authority and Receipts 1980-2010 1980-2010 Bush Tax Cuts
Jobs and Growth Tax Relief Reconciliation Act of 2003
Economic Growth and Tax Relief Reconciliation Act of 2001
DoD cut by $42B
458,000 people leave the service from 1990 to 1994
166 fewer ships
in the Navy
from 1990 to 1994
O&MN cut by $4.0B
SCN cut by $7.4B