Posted: 2:21 pm ET
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Earlier, we posted about Trump’s “skinny budget” which guts the State Department and USAID funding by 28%. (see WH/OMB Releases FY2018 Budget Blueprint – @StateDept/@USAID Hit With 28% Funding Cuts).  We understand that the actual cut is closer to 36% once the Overseas Contingency Operation (OCO) is factored in. In early March, media reports indicate that the proposed cuts for the international affairs budget would be 37% (see In Disaster News, Trump Budget Seeks 37% Funding Cut For @StateDept and @USAID). If there was push back from the Tillerson State Department in the weeks before OMB released the “America First” budget blueprint, T-Rex’s diplomatic nudge appears to result in a 36% funding reduction instead of the first reported 37% funding cut.

Yesterday morning, as folks were waking up to the OMB release, a letter sent from Secretary Tillerson’s office arrived in the inboxes of State Department employees:

THE SECRETARY OF STATE
WASHINGTON

Today the Office of Management and Budget released a preview of the President’s budget request for 2018.  It is an unmistakable restatement of the needs the country faces and the priorities we must establish.  The State Department’s budget request addresses the challenges to American leadership abroad and the importance of defending American interests and the American people.  It acknowledges that U.S. engagement must be more efficient, that our aid be more effective, and that advocating the national interests of our country always be our primary mission. Additionally, the budget is an acknowledgment that development needs are a global challenge to be met not just by contributions from the United States, but through greater partnership with and contributions from our allies and others.

Over the coming weeks, we will work together to draw a new budget blueprint that will allow us to shape a Department ready to meet the challenges that we will face in the coming decades.  We will do this by reviewing and selecting our priorities, using the available resources, and putting our people in a position to succeed.

We have a genuine opportunity to set a new course.  Together, we are going to advance America’s national security and its economic security.  I am motivated to tackle this challenge and am eager to realize what we will achieve together.

We understand that this letter did not get very good reviews in Foggy Bottom. We really do think that Secretary Tillerson needs to have a town hall meeting with his employees as soon as he gets back from his travel. Before perceptions become realities.  We already know the why, now folks need to understand the where and how.  And it doesn’t help to just tell one bureau it’s zeroed out in funds, and then come back another day and say how about a 50% cut? As if the 7th floor taskmasters got off the wrong side of bed one morning and on the right side the next day.

During his stop in Japan, Secretary Tillerson finally took a few questions during press availability with Japanese Foreign Minister Fumio Kishida. The State Department budget was one of the questions asked during the presser. Below is a transcript from state.gov:

QUESTION: Secretary Tillerson, today the White House is revealing its blueprint for the federal budget that will include deep cuts to your department. Do you support efforts to make such drastic cuts to diplomacy and development funding at this time? And are you confident that you will be able to continue to represent U.S. interests with such reduced room to maneuver?

MODERATOR: (Via interpreter) Secretary Tillerson, please.

SECRETARY TILLERSON: Well, I think in terms of the proposed budget that has been put forth by President Trump, it’s important from the State Department perspective, I think, a little context, to recognize that the State Department is coming off of an historically high level of budgetary resources in the 2017 budget, and this is reflective of a number of decisions that have been taken over the past few years, in part driven by the level of conflicts that the U.S. has been engaged in around the world as well as disaster assistance that’s been needed.

I think clearly, the level of spending that the State Department has been undertaking in the past – and particularly in this past year – is simply not sustainable. So on a go-forward basis, what the President is asking the State Department to do is, I think, reflective of a couple of expectations. One is that as time goes by, there will be fewer military conflicts that the U.S. will be directly engaged in; and second, that as we become more effective in our aid programs, that we will also be attracting resources from other countries, allies, and other sources as well to contribute in our development aid and our disaster assistance.

I think as I look at our ability to meet the mission of the State Department, I am quite confident. The men and women in the State Department are there for one reason. They’re not there for the glory. They’re not there for the money, obviously. They’re there because they’re extraordinarily dedicated to the mission and dedicated to ensuring America’s national security, economic security. We are going to be undertaking a very comprehensive examination of how programs are executed, a very comprehensive examination of how we are structured, and I’m confident that with the input of the men and women of the State Department, we are going to construct a way forward that allows us to be much more effective, much more efficient, and be able to do a lot with fewer dollars.

So it’s challenging. We understand the challenge. I take the challenge that the President has given us on willingly and with great expectation that with everyone in the State Department’s assistance, we’re going to deliver a much better result for the American people in the future.

Secretary Tillerson talking about “historically high level of budgetary resources in the 2017 budget” for the State Department made us look up the budget request for the last five fiscal years. The largest funding request was five years ago for FY2013 at $51.6 billion.

FY2017:  $50.1 billion.  The State Department $50.1 billion request includes a base of $35.2 billion and $14.9 billion for Overseas Contingency Operations (OCO) request. (SAO: For FY16 and ’17, we will be using OCO to support countries and programs that require assistance to prevent, address, or recover from human-caused crises and natural disasters, as well as to secure State and USAID’s operations from hostile acts and potential terrorism. OCO will be providing about 50 to 100 percent of the funding for some countries and programs, including a range of ongoing assistance operations and treaty commitments).

FY2016:  $50.3 billion. The State and USAID budget request totals $50.3 billion.  The base budget request is $43.2 billion plus $7 billion in Overseas Contingency Operations funds  — to respond to immediate and extraordinary national security requirements. OCO funds supports critical programs and operations in Afghanistan, Pakistan, and Iraq, as well as exceptional costs related to efforts to fight ISIL, respond to the conflict in Syria, and support Ukraine.

FY2015: $46.2 billion. The overall State and USAID Budget Request is $46.2 billion, plus $5.9 billion request for Overseas Contingency Operations (OCO) which funds key programs in — Iraq and Pakistan helps sustain hard-fought gains in Afghanistan through the 2014 transition.

FY2014: $47.8 billion. The overall request is $47.8 billion, includes $44 billion as part of base budget or enduring budget, and $3.8 billion for Overseas Contingency Operations, (OCO)  which — largely covers the extraordinary costs of Iraq, Afghanistan, and Pakistan.

FY2013: $51.6 billion. The Department of State/USAID budget totals $51.6 billion which includes $43.4 billion for the core budget,  which funds the long-term national security mission of the Department and USAID and $8.2 billion for Overseas Contingency Operations (OCO) to support the extraordinary and temporary costs of civilian-led programs and missions in Iraq, Afghanistan, and Pakistan.

The second thing we’d like to note is Secretary Tillerson’s assertion that “there will be fewer military conflicts that the U.S. will be directly engaged in.” If that’s really the expectation, why is Trump’s budget giving DOD $54billion more in funds as it guts the State Department and USAID? As we write this, we are mindful that the United States is still in Afghanistan and Iraq, in Syria, in Yemen, and a host of other places that are not front page news.

By the way, what’s this we’re hearing about the transition folks looking to close some US embassies in Africa?  Apparently there are now people at State who think we should close our embassy in country X for instance because — hey, AFRICOM is already there so why do we need an embassy?  Argh!  These folks realize that 3/4 of AFRICOM actually works at the command’s headquarters in Stuttgart, Germany, right?  AFRICOM’s HQ is not the point, of course, but if there are transition folks thinking about AFRICOM (just one of the six geographic combatant commands) as an excuse for post closures overseas, where else might they be thinking of playing their game of disengagement?

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