Odierno: army could see USD17 billion operations, maintenance shortfall this year

The US Army chief of staff believes his service may be facing a potential shortage of USD17 billion in total planned operations and maintenance (O&M) funding due to a host of budget issues beleaguering the military in Fiscal Year 2013 (FY13).

In early and mid-January 2013, after Congress voted to delay sequestration until March 2013, top defence officials began warning that if lawmakers do not finalise a defence budget and reverse sequestration before March, the Department of Defense (DoD) would in the near term suffer from a lack of O&M funding.

Operating accounts were planned to increase from FY12-13, but have been held at last year's levels because Congress has not yet finalised FY13 budget legislation. The DoD and other departments are currently funded through a stop-gap measure called a Continuing Resolution (CR), and are concerned that it could be used to fund the government for the whole year.

"For the army a [year-long] Continuing Resolution would result in a shortfall of USD6 billion in our operations and maintenance accounts," US Army chief of staff General Ray Odierno said during 24 January 2013 remarks to an Association of the US Army breakfast meeting.