U.S. SECRETARY OF DEFENSE PANETTA SPEAKS ABOUT CONGRESS AND SEQUESTRATION

FROM: U.S. DEPARTMENT OF DEFENSE

Panetta: Congress 'On The Clock' to Avert Sequestration

By Jim Garamone
American Forces Press Service
WASHINGTON, Oct. 25, 2012 - Congress "is on the clock" and has critical work to accomplish when the House and Senate come back into session after the Nov. 6 election, Defense Secretary Leon E. Panetta said here today.

During a Pentagon news conference today, Panetta and Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, discussed the need for lawmakers to act.

First on the list is averting sequestration before it takes effect Jan. 2, Panetta said. Unless Congress decides on an alternative by that date, a sequestration provision in budget law requires an additional $500 billion in defense spending cuts over the next decade, on top of a $487 billion spending reduction already in effect for that period.

"There are only 70 days until that happens, and Congress is certainly on the clock when it comes to that potential sequestration occurring," the secretary said.

The secretary said he also wants Congress to pass the fiscal 2013 defense authorization bill. "I'd like them to pass a ... defense appropriations bill, too, but in the very least, we really do need a defense authorization bill so that we can continue to implement our new defense strategy," he said.

The secretary also stressed the need for Congress to act on a cybersecurity bill. "We really do need strong cybersecurity legislation to ensure that we can help defend the nation against a cyberattack," he said. This was the second time in two weeks that Panetta has stressed the need for this legislation, again warning of the growing threat of a cyberattack on the nation's infastructure.

Finally, Panetta called on the Senate to act quickly on the nominations of Marine Corps Gen. John R. Allen to be the next commander of U.S. European Command and to become NATO's Supreme Allied Commander for Europe and for Marine Corps Gen. Joseph F. Dunford Jr. to replace Allen as commander of NATO's International Security Assistance Force in Afghanistan.

"This is a full agenda," the secretary said. "It's one that requires Democrats and Republicans to work together. And after a tough national election, the American people, I think, will expect both parties to roll up their sleeves, work together to solve the problems facing the nation, and to protect our national security."

Congress's failure to approve a fiscal 2013 budget is causing problems way down the line for the Defense Department, Panetta said. "We're developing a [fiscal] 2014 budget that to some extent ... is not based on what Congress has done, because they haven't done it," the secretary said. "We don't know what the 2013 budget is going to be." The department is operating on a continuing resolution through March 2013 in lieu of a budget for the whole fiscal year, which began Oct. 1.

Panetta said Pentagon officials don't know what they can spend for fiscal 2013, let alone fiscal 2014. "This is a strategic issue: it's 'What kind of stability am I going to have in terms of defense spending for the future?'" he said.

Noting that the department still is cutting almost $500 billion from the defense budget over the next decade, Panetta said that to do so smartly requires some certainty.

"For us to be able to make the kind of strategic choices we need to make, I have to have some stability with regards to where are we going from here," he said. "And I don't have that right now, and frankly, that's a major concern."

DEPUTY DEFENSE SCRETARY CARTER SAID SEQUESTRATION IS LIKE A HIDDEN TAX



Photo:  Ashton B. Carter
FROM: U.S. DEPARTMENT OF DEFENSE

Carter: Sequestration Would Have Effect of 'Hidden Tax'By Cheryl Pellerin
American Forces Press Service

WASHINGTON, Sept. 20, 2012 - Because it would lead to inefficiencies, the sequestration mechanism built into the Budget Control Act would amount to a hidden tax, Deputy Defense Secretary Ashton B. Carter said here today.

"If sequestration happens, it is not only disruptive in many ways I'd love to describe, but it's a hidden tax all by itself," Carter said during an interview at the Newseum with Politico Pro Defense's Phil Ewing. "It forces us to be uneconomical, and our industry partners to be uneconomical, in the conduct of our affairs. That's not good."

Sequestration refers to a mechanism in last year's law that raised the debt ceiling that would trigger an additional $500 billion across-the-board defense spending cut over the next decade, in addition to $487 billion in cuts already programmed, unless Congress identifies equivalent savings by January.

Along with Defense Secretary Leon E. Panetta, Carter said, he is urging Congress to find a solution.

"We fervently hope that something can be done to avert sequestration," Carter said. "I don't know how many months Secretary Panetta and I have been railing about what sequestration will do to national defense," he said. "I think people didn't know what the word meant, but he did, and we did, and the word he used is 'devastating.'"

The deputy defense secretary said he cannot say anything good about sequestration, and he called its size and the manner in which it was applied "senseless."

"And makes the jobs of people like us who are trying to manage your security to a reasonable result ... impossible," he added.

As Defense Department managers work to "get our programs just so," including all the things they must do for service members and their families, Carter said, the impending cuts are prohibitive. "In comes something like this that makes orderly disposition of the public's business impossible," he added. "So I very much hope some way can be found over the next few months to stop it."

Carter said he'd be open to Congress enacting a delay in the January deadline to allow more time for a solution. "A delay's better than having it," he said, "and if a delay leads to ultimately dispelling this cloud, that's all the better."

The potential for government shutdowns and the prospect of the government operating on a series of continuing resolutions in place of a budget also affect defense industry partners trying to do their jobs, Carter said.

"You're working on contingencies at the same time you're trying to do the bedrock business that we're supposed to do, which is to support the warfighter and deliver value for the taxpayer," he said. "So it's annoying, it's frustrating and it's counterproductive."

Carter said people may be aware of the "extremely disruptive, uneconomical and wasteful" effects on defense programs such as aircraft and vehicle acquisition, but they may not appreciate potential effects on operating accounts.

Under sequestration, he explained, warfighting costs could require tapping into Army operations and maintenance funding, which in turn would affect training, which then would affect readiness.

"The force will not be as ready to do things elsewhere in the world. ... It really has an effect on security," he said.

Sequestration also affects people, Carter said – not only service members, civilian employees and their families, but also industry partners.

They are the ones who build the things that make our military the greatest in the world," Carter said. "It affects them, [and] it affects their employees. So across the board, it deserves the word 'devastating.'"

DEFENSE DEPARTMENT OFFICIAL SITES UNINTENDED EFFECTS OF SEQUESTRATION

FROM: U.S. DELPARTMENT OF DEFENSE
Carter Describes Possible Unintended Effects of Sequestration Law

By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

WASHINGTON, Aug. 1, 2012 - While the Defense Department can foresee the harmful effects of sequestration, the nature of the legislative mechanism makes it impossible to devise a plan that eliminates or substantially mitigates those effects, Deputy Defense Secretary Ashton B. Carter said here today.

Testifying before the House Armed Services Committee, Carter explained the law's effect on the defense budget and overall strategy.

Sequestration refers to a mechanism built into the Budget Control Act that would trigger an additional $500 billion across-the-board cut in defense spending over the next decade if Congress doesn't identify alternative spending cuts by January.

"We're working with [the Office of Management and Budget] to understand this complex legislation, and we are, as I described, assessing impacts," Carter said. "But we're still five months from January. I'm hoping, to quote [Defense] Secretary [Leon E.] Panetta, that Congress -- both Republicans and Democrats -- will exercise the necessary leadership to make sure that sequestration is de-triggered. In the unfortunate event that sequestration is actually triggered, we will work with OMB, and like all the federal agencies affected by this law, we will be ready to implement it."

Carter also discussed the unintentional effects of the mechanism if it isn't "de-triggered" in a reasonable amount of time.

"While we'll not fail to prepare for sequestration, we're equally worried about a different type of error," he said. "This would occur if sequestration does not happen, but we end up triggering some of its bad effects anyway.

"For example, we do not want to unnecessarily alarm employees by announcing adverse personnel actions or by suggesting that such actions are likely," he continued. "For efficiency reasons, we do not want to hold back on the obligation of funds, either for weapons projects or operating programs, that would have been obligated in the absence of a possible sequestration."

The deputy defense secretary also noted the department doesn't want to cut back on training, which would harm military readiness as the nation faces a complex array of national security challenges. Also, Carter said, private companies that serve DOD and constitute "important members of our national security team" also need to make decisions on issues related to sequestration.

Carter said a number of these private companies have expressed alarm at "such a wasteful and disruptive way" of managing taxpayers' money and their employees' talent.

"We will continue to consult closely with them, along with the OMB, and other government departments," Carter said. "The best thing that can happen to our industry partners, as well as the department, is for the Congress to enact a balanced deficit reduction plan that halts implementation of this inflexible law."

After outlining his thoughts on sequestration's potentially "devastating" impacts, Carter re-emphasized the Defense Department's position.

"Secretary Panetta and I strongly believe that we need to deal with the debt and deficit problems in a balanced way and avoid sequestration," he said. "This will require legislation that both houses of Congress can approve and that the president can sign."

Carter said Americans, the nation's allies, and even its enemies, need to know the U.S. government has the political will to implement the defense strategy that has been put forth.

"The men and women of our department, and their families, need to know with certainty that we'll meet our commitments to them," he said. "Our partners in defense industry, and their employees, need to know that we're going to have the resources to procure the world-class capabilities they can provide, and that we can do so efficiently."

PANETTA, DEMPSEY WARN OF SEQUESTRATION THREAT

Photo:  U.S. Secretary of Defense Leon Panetta.  Credit:  U.S. Navy.
FROM:  AMERICAN FORCES PRESS SERVICE
DOD Leaders: Sequestration Threatens Military's Successes
By Karen Parrish
WASHINGTON, June 29, 2012 - The nation's military has logged historic achievements in the past 12 months, but faces a future clouded by financial threat, Defense Secretary Leon E. Panetta said today.

The secretary and Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, both spoke about the topic of sequestration during a briefing with Pentagon reporters.

Panetta summed up the department's main activities since he became Defense Secretary last summer, noting that the Iraq War has ended, a "responsible drawdown" of U.S. forces in Afghanistan has begun, and the NATO mission in Libya concluded alongside the fall of Moammar Gadhafi.

The department has also "maintained a relentless focus on al-Qaida," and put in place a new defense strategy and a budget request focused on the future force and rebalancing toward the Asia-Pacific region and the Middle East, the secretary said.
DOD has also maintained faith with troops by protecting pay and benefits, and has increased employment opportunities for veterans and spouses, he noted.
"We implemented the repeal of 'Don't Ask, Don't Tell,'" Panetta said. "We've also opened up 14,000 military positions to women, and we've put in place enhanced measures to prevent sexual assault."

The biggest threat to all of those accomplishments and initiatives is sequestration, he said.
Sequestration is a mechanism built into the Budget Control Act that will trigger an additional half-trillion-dollar cut to defense spending over the next 10 years if Congress doesn't otherwise identify spending reductions the act requires.

Panetta said the uniformed men and women he's met in war zones, and the wounded warriors he's visited in military hospitals and rehabilitation centers, "deserve better than the threat of sequestration."

"Too often today, the nation's problems are held hostage to the unwillingness to find consensus and compromise," the secretary said.

Next week on the Fourth of July Americans will celebrate their nation's birth, he noted.
"It is a time for our leaders and for every American to recognize that the blessings of freedom are not free," Panetta said. "They come from a legacy of sacrifice, of courage and of leadership. That legacy is now our responsibility to fulfill, so that hopefully our children can enjoy a better life in the future."

Panetta said the defense industry leaders he has consulted with also face an uncertain future which could include widespread layoffs and lasting damage to the nation's military modernization programs.

"We are very much a team," he said. " ... [Defense] companies, as well as the Defense Department, are making very clear to Capitol Hill that this is a matter that ought not to be postponed."

The department and the nation's defense industries seek assurance from Congress that sequestration won't happen and that "we can proceed with the budget as we've outlined [it], as opposed to facing ... the possibility of another drastic defense cut," the secretary said.

Dempsey said his travels in recent weeks, as well as over the past year, have brought him into contact with a wide range of service members.
"At every stop ... I was struck by their tremendous sense of pride and commitment," the chairman said. He praised service members' courage, selflessness, intelligence, and dedication to the mission.

"They'll do anything to take care of this country," he said.
Dempsey said he was also struck by troops' concern over the budget.
"I find it encouraging, on the one hand, that our military family is informed and interested," he said. "But it's unfortunate that it weighs so heavily on their minds. Frankly, they have enough to worry about."

The chairman noted, "We have to remember, too, that the force of the future -- that is, America's sons and daughters who may be out there contemplating a military career -- are also watching."

Dempsey said as Panetta has made clear, "We simply have to come together to prevent this across-the-board, unbalanced cut that could jeopardize our ability to deal with the very real and serious threats that we face."

The chairman said he and the service chiefs have no issue with military budgets facing scrutiny in the current challenging budget climate, or with the need to make tough program decisions.

"That's why our strategy and the budget that supports it constitute a carefully balanced set of choices," Dempsey said. "These choices make sure we have the right talent and the right tools to keep our country immune from coercion."

Dempsey said he, the secretary and the joint chiefs seek a balanced approach.
"A sensible way forward is what we expect," the chairman said. "That's the only way we can honor our commitment to our military family and to the American people."

PANETTA, DEMPSEY TALK ABOUT SEQUESTRATION'S SHADOW

FROM:  AMERICAN FORCES PRESS SERVICE  
Panetta, Dempsey Say Pentagon Feels Sequestration's Shadow

By Jim Garamone

WASHINGTON, April 16, 2012 - The shadow of sequestration is being cast over the Defense Department, and members of Congress must act to dissipate it, Defense Secretary Leon E. Panetta said here today.

Panetta and Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, spoke about sequestration and the defense budget during a news conference at the Pentagon.

"Sequestration" refers to a mechanism based into the Budget Control Act that would trigger an additional $500 billion cut across the board for defense spending over the next decade if Congress doesn't find an alternative by January.

"I think ... the shadow of sequestration is there," Panetta said. While the Defense Department has received no guidance from the Office of Management and Budget to begin planning for sequestration, the threat of it is having an impact on the department and on the industries the department depends on, the secretary said.

"In the end, it's up to Congress," Panetta said. "In the coming weeks, they will begin considering the defense authorization and appropriations bills. Our hope is that Congress will carefully consider the new defense strategy and the budget decisions that resulted from that strategy."

Any changes the Congress contemplates will affect other sections of the budget, because it is a zero-sum game, the secretary noted. Because of the Budget Control Act, he added, any change in any one area of the budget and force structure will inevitably require offsetting changes elsewhere.

"That carries the real risk that ... if this is not done right, the result could be a hollow, unbalanced or weaker force," he said. "Our hope is that our strategy will not be picked apart piece by piece."

Panetta said he hopes Congress will be reasonable. "There isn't any member [of Congress] I've talked to that doesn't think that sequester is a disaster," he said. "There isn't any member who has said to me, 'Oh, it'll be great.'" All of them understand that it's the wrong way to go.

"And I just have to hope that ultimately, they will find the courage and leadership to be able to address that issue, detrigger sequester, deal with the other challenges that are out there and try to do it as soon as possible," he continued, "because frankly, the longer this drags on, the more of an impact it has in terms of the planning process and in terms of the budget process."

Dempsey said the department confronted the new fiscal reality last year and developed the new strategy. The fiscal 2013 budget request came from that new strategy, he said.

"It took us every bit of energy we had to get from there to the budget submission in February," the general said. "So I mean, I would anticipate that we would have to begin doing some planning in the mid to late summer if we have any chance at all of reacting to it should it trigger."

This is a critical moment for the United States, Panetta said, and while the nation must cut the military, this does not mean threats have disappeared.

"We need to rise to meet the challenges that are facing us in this dangerous and uncertain world, and we can't afford to have the Congress resort to bitter partisanship or parochialism at this critical time," Panetta said. "So the message we wanted to send Congress today is that there is very little margin for error with this package.

"That's the reality that all of us are living with," he added. "The strategy we developed will maintain, we believe, the strongest military in the world by every measure, and that's essential because of the nature of the security challenges that we're facing."

DEFENSE SECRETARY PANETTA BLAMES CONGRESS FOR FORCED CUTS IN MILITARY BUDGET

American Forces Press Service
Defense Secretary Leon E. Panetta answers a sailor's question on board the USS Peleliu in the Pacific Ocean, March 30, 2012. DOD photo by Erin Kirk-Cuomo

Panetta Blasts Congress for Failure to Avert Sequestration
By Donna Miles
WASHINGTON, March 31, 2012 - Defense Secretary Leon E. Panetta blasted Congress yesterday for threatening the Defense Department with sequestration he said would be devastating to the force.

"Congress did a stupid thing," he told crewmembers of USS Peleliu during a shipboard visit off the Southern California coast. "What they essentially did was to put a gun to their heads and to the head of the country and basically say that if they did not come up with a plan to reduce the deficit, that this so-called sequester process would go into effect."
That process, the secretary explained, would cut $1.2 trillion in federal spending across the board -- almost $500 billion to come from the defense budget.

The cuts would be implemented across the board, he said, guaranteeing that the force would be hollowed out in the process. "It would guarantee that every area would be cut," Panetta said. "It would guarantee that it would weaken our defense system for the future."
Panetta expressed disappointment that a specially appointed congressional deficit-reduction committee hasn't been able to come up with solutions that will prevent sequestration from triggering in January 2013.

"I'm doing everything possible to tell Congress that it would be irresponsible to let that happen," he told the crew. "But my biggest concern is that Congress has got to find the strength, the courage and the will to get this done."

Panetta said he's pointed to the example of the U.S. military to encourage Congress to do the right thing.

"I told the members of Congress, 'Look, I've got men and women that put their heads, their lives on the line every day to protect this country. I'm just asking you to assume just a little bit of risk here to do what's right for this country and to solve the problems that we face,'" he told the group.

"'If my men in women can do this, then you can do it as well,'" Panetta said he told Congress. "So I'm hoping that ultimately they'll do what's right and that [sequestration] won't happen."