Photo By Staff Sgt. Rufus Stuckey | Stephen D. Austin, U.S. Army Reserve director of Resource Management, Material Core...... read more read more
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ALEXANDRIA, Va. – Stephen D. Austin, the Financial Officer and Director of Resource Management and Materials of the Army Reserve, presented a budget and funding overview during the U.S. Army Reserve Command (USARC) Commander’s Conference here July 22.
Making informed cost-management decisions and using resources efficiently and wisely are priorities of the Army Reserve and will become more important in the future, Austin said.
“It’s going to inform our decisions,” Austin said. “You need to be aware of where things are going and be better informed to make better decisions.”
Austin stressed that adherence to the 80/20 obligation rule, which requires that 80 percent of budgeted funds be spent by July of a given year, is critical. Congress and the Defense Department direct the rule.
Austin said there are a lot of uncertainty in budgets for the next several years when introducing the Program Objective Memorandum (POM), a document that outlines the budget cycle for the next five years.
Readiness and training will receive budgeting priority over the next few years, Austin said. Even so, leaders need to be judicious in what they spend on training.
“As budgets get smaller, you’re going to do less,” he said. “So let’s try to do what we do smarter.”
Austin said Army Reserve commanders bring civilian-acquired skills that give them an edge during periods of budget constraints. In civilian industry, innovation is encouraged in order to maximize profits. Those cost cutting skill sets could also be used to maximize value in Army Reserve spending.
“You guys [Army Reserve senior leaders] have a background in civilian industry where cost is more of a factor,” he said.
Austin also addressed challenges to equipment funding, such as upgrading equipment, and managing equipment life cycles.
Austin said Critical Dual Use should be part of everyone’s vocabulary. Critical Dual Use is a policy that gives the Army Reserve the authority to respond to natural disasters and other emergencies within the United States. That role could be used to secure funding, he said.
The USARC Commander’s Conference is an annual opportunity where Army Reserve leaders discuss important issues impacting the force.
| Date Taken: | 07.23.2014 |
| Date Posted: | 07.23.2014 11:27 |
| Story ID: | 136978 |
| Location: | ALEXANDRIA, VIRGINIA, US |
| Web Views: | 563 |
| Downloads: | 1 |
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