FY 2008 OM BUDGET DEVELOPMENT PROCESS

1. FY 2008 O&M BUDGET DEVELOPMENT PROCESS Ray Russo Southwestern Division

2. Budget DevelopmentStrategies Level of Comfort Process Similar to FY06 & FY07 Focus Accurate Costs Accuracy of Performance Measures and Data Consistency Goal: Increased Commander Awareness LEVEL of COMFORT We have done the process in 05, 06 and 07. Pretty good idea of what to expect with regard to Performance Measures (i.e., NAV tonnage, etc.) We are now looking for ways to make the task less burdensome. Not saying it is not important to ensure the data is not provided (71 columns for FDR). It is what is used by HQ, ASA and OMB for final selection. FOCUS GOAL We know the budget won’t be final until January based on past history. Goal is to raise the CDRs awareness to: Reduce Surprises Get Buy-in into the numbersLEVEL of COMFORT We have done the process in 05, 06 and 07. Pretty good idea of what to expect with regard to Performance Measures (i.e., NAV tonnage, etc.) We are now looking for ways to make the task less burdensome. Not saying it is not important to ensure the data is not provided (71 columns for FDR). It is what is used by HQ, ASA and OMB for final selection. FOCUS GOAL We know the budget won’t be final until January based on past history. Goal is to raise the CDRs awareness to: Reduce Surprises Get Buy-in into the numbers

3. INITIAL INCREMENT Hold 75% for each Business Line Project amounts can vary Rank using Performance Measures Budget DevelopmentStrategies Issue amounts by District, by Business Line at the 75% level We feel it is the only option due to inconsistency in levels of service. Definition of “Bare Bones” or “Must Haves” vary between Districts and projects. We strongly encourage our Districts to not reduce or increase the BL amounts. We have past history of Districts doing this and getting burnt. We do allow them to fund projects at different levels within their 75%. We look to the Performance Measures to give us additional funding in INC 2 and above. Issue amounts by District, by Business Line at the 75% level We feel it is the only option due to inconsistency in levels of service. Definition of “Bare Bones” or “Must Haves” vary between Districts and projects. We strongly encourage our Districts to not reduce or increase the BL amounts. We have past history of Districts doing this and getting burnt. We do allow them to fund projects at different levels within their 75%. We look to the Performance Measures to give us additional funding in INC 2 and above.

4. NAV Moving towards systems approach to budgeting Gulf Intracoastal Waterway, TX McClellan-Kerr Arkansas River Navigation System FDR Reviewing Performance Measures for Systems Applications REC & ES Follow the BESTs HYD Joint Activities Budget DevelopmentStrategies

5. CWID / District PM Offices Lead for Budget PDT Coordination of Activities Issuance of Guidance Data Quality Assurance Escalating Issues / Concerns Project Level Reviews Commander Awareness Commander Awareness

6. Business Line Managers Management of BLT Responsible for Data Quality Ranking of Budget Line Items Building Consensus Develop of BLT Presentation Commander Awareness

7. Civil Works Business Line Teams.

8. Board of Directors Meeting Culmination of Budget Development Process MSC CWID provides overview of process / historical analysis District Commanders present their Initial INC with focus on strategic issues Purpose: Obtain MSC CDR concurrence in process Obtain District CDR concurrence in process Provide MSC CWID / BLM guidance and directions for coordination with HQ BLM Commander Awareness

9. QUESTIONS?