PENTAGON SAYS SHUTDOWN OST $600 MILLION IN LOST PRODUCTIVITY

FROM: U.S. DEFENSE DEPARTMENT 
Comptroller: Shutdown Cost DOD $600 Million in Productivity
By Claudette Roulo
American Forces Press Service

WASHINGTON, Oct. 17, 2013 - Furloughs of civilian employees as a result of the government shutdown cost the Defense Department at least $600 million in productivity, the Pentagon's top financial officer said today.

During a Pentagon news conference, DOD Comptroller Robert F. Hale said that in addition to the lost productivity, the shutdown generated a number of other costs that have yet to be calculated.

"We built up interest payments, because we were forced to pay vendors late," Hale said. "We had to cancel training classes, so we had to bring the people home on orders and then send them right back again."

The short-term deal signed by President Barack Obama late yesterday doesn't put the department on firm budgetary ground, Hale noted. With no flexibility to move funds between accounts, and accounts frozen at 2012 levels, he said, the department will have to be as fiscally watchful as it can.

"If that's a vague answer, it's because things are kind of vague," he said. "It's not a good way to run a railroad."

The temporary funding measure that allowed the government to reopen prevents DOD from starting new projects, Hale said. And one of the biggest problems, he added, is that it requires the department to buy the same ships it bought last year, because Congress appropriates by ship.

"It's a 'Groundhog Day' approach to budgeting," the comptroller said.

The budget uncertainty will have an impact on staffing levels and morale, he added. If the budget stays at the level authorized under the Budget Control Act of 2011, he said, "we're going to have to get smaller." Hale added that the department will try to meet the staffing goals through attrition, but that either way, it will mean fewer civilian employees.

"I'm a lot more worried about the morale effects," Hale said. "We need some stability, and we need to keep telling [employees] they're important, and then we need to show it through things like pay raises and no more furloughs, etc."

Without a change to the budget, there will also be military force reductions, Hale said.

"I think all of us are aware that it will be a somewhat different, smaller military if we have to go through with those cuts," he added. "We will be as prepared as we can, within the limits of time that we have, to be ready for a wide range of contingencies, because we know that's what we face."

THE GOVERNMENT SHUTDOWN AND CIVILIAN MORALE

FROM:  U.S. DEFENSE DEPARTMENT 
DOD Leaders Worry About Shutdown's Effect on Civilian Morale
By Jim Garamone
American Forces Press Service

WASHINGTON, Oct. 11, 2013 - The partial government shutdown is hurting DOD civilian morale, the department's comptroller told Congress yesterday.

Under Secretary of Defense Robert F. Hale told the House Armed Services Readiness Subcommittee DOD civilians have been through a lot over the past year and it is hurting productivity.

The furloughs triggered by the shutdown that began Oct. 1 are only the most recent instance of this damage, Hale said. Civilian employees have not had annual raises for more than three years. Hiring freezes, cuts in training, cuts in bonuses and step increases all work to erode morale.

Earlier this year, almost all DOD civilians were furloughed under sequestration for six days.

The lapse in appropriations that began Oct. 1 continues to affect morale. Around 400,000 DOD civilian employees were furloughed after the fiscal 2013 appropriations lapsed. About 95 percent of them were recalled under the Pay Our Military Act. Still, there are around 7,000 DOD civilians remaining on furlough.

"In the first days of the lapse, commanders repeatedly told me that civilian workers were frustrated and angry," Hale said. "And I can't imagine they'd be any other way."

The comptroller said many DOD employees say they will retire or resign and seek other jobs.

"And low morale means low productivity at most DOD support activities," Hale said.

Later in the hearing, Hale corrected a representative who called furloughed employees "non-essential."

"Please don't use the word non-essential as regards our civilians," he said. "The folks that are still on furlough are essential. We can't operate without them in the longer term. It is very ... harmful to morale. Call them nonexempt or non-excepted, but please don't use that phrase."

NATIONAL GUARD FEELS IMPACT FROM SHUTDOWN

FROM:  U.S. DEFENSE DEPARTMENT 
National Guard Faces the Shutdown
By Jim Garamone
American Forces Press Service

WASHINGTON, Oct. 11, 2013 - National Guard personnel are feeling the effects of the government shutdown and leaders are worried about the readiness of the component, Air Force Gen. Joseph Lengyel, the vice chief of the National Guard Bureau said today.

The Pay Our Military Act has mitigated some of the effects of the partial government shutdown for the Guard, but there are still concerns, the general said.

The act does not allow for drill training periods, unless the drill is in support of an excepted activity such as preparing for an overseas deployment, he said. "Most October drills are canceled, impacting nearly 400,000 National Guard members," Lengyel said. "These drill periods are critical to maintaining the training and preparedness of our citizen soldiers and airmen – nearly 85 percent of our force."

For individual Guardsmen canceling drills means a loss of pay. For units it means degrading the readiness needed to respond to homeland and overseas missions.

Not all units are impacted. "Units preparing for deployment are not affected by the government shutdown," Lengyel said. "The National Guard is now the best-trained and best-equipped force in our history. We are indispensable to both domestic and overseas operations. It would be extremely unfortunate to this nation if our readiness is allowed to atrophy."

The shutdown is delaying some training deployments, the general said, but it will not affect Guardsmen's ability to deploy for actual, real-world missions.

The National Guard responds to emergencies within the United States. Recent activities included providing assistance to local authorities during flooding in Colorado, aiding in fighting wildfires in the West and preparing for storms in the East. Guardsmen and civilians who work for the Guard remain on call despite the shutdown. "During the lapse of appropriations, DOD civilians who support the military in support of the preservation of life and protection of property were allowed to continue working," Lengyel said.

When Tropical Storm Karen threatened the Gulf Coast, the Guard worked with Defense Secretary Chuck Hagel to authorize the recall of up to 2,200 additional National Guard military technicians to assist with disaster response actions. "The department has now recalled additional categories of civilians as defined by the Pay Our Military Act," he said.

The initial shutdown furlough impacted more than 40,000 dual-status military technicians. These men and women are civilian employees during the week and drilling Guardsmen. "They provide critical support that makes it possible for traditional Guard soldiers to train and operate, such as performing day-to-day equipment maintenance, managing pay and other administrative functions," the general said.

Under POMA, DOD was able to recall additional categories of civilians, leaving the National Guard with nearly 250 dual-status technicians still on furlough. "While this is a positive development, there is still more work to be done in order to get everyone back to work," he said.