Meeting was Co-Chaired by Ms. Riley, the Deputy Administrative Assistant and the Director of Management, COL John Morris and briefed by Ms. Ada Mason-Acker. Ms. Riley opened the meeting and remarked that this is the earliest date into the fiscal year that a RSG has convened. She cautioned that it appears the funding level for FY00 was better than the current funding picture for FY01. She stressed that the key to dealing with the situation is to get leadership educated and energized so that we can all work together to deal with the critical funding shortages.

The purpose of the meeting was to provide an update on the status of the FY01 Funding Letter (FL) process and the impact of the process on Operating Agency (OA) 22 program directors/families.

The "Family Process" used in OA22 was discussed. There are currently 25 families and a new family, Deputy Chief of Staff for Programs, is in the process of being established. Due to the high turnover rate of family POCs, it is important that each family ensures that their personnel are familiar with the process and individual roles and responsibilities.

OA22 is empowered by two groups—the RSG and the Resource Board (RB). The RSG is the working level group and the RB is the senior level decision making body.

OA22 funding falls within three main categories:

Alternate strategies for dealing with FY01 shortfalls in the MACOM operations category were presented.

During FY00, OA22 executed $3,186M. The FY01 FL from ABO provided $3,008M. The importance of normalizing—subtracting one time costs—when comparing FY00 funding against that for FY01 was stressed. For example, the $70M for Pentagon rent/renovation appears in the current FY01 program, but in FY00 these funds were transferred to OSD during the FL process. After adjusting the FY01 program for this and other specific programs that must be funded, the buying power in FY01 is considerably lower than it was in FY00.

During FY00, OA22 received an increase of $237M while $56M was transferred to other MACOMs and agencies. Just in time financing and cash flow were facts of life necessary to provide up front funding for critical requirements until ABO IOUs were paid.

Current estimate of OA22 UFRs for FY01 exceeds $504M--$162M for MACOM operations; $219M for high visibility/Army focus programs; $123M for open allotment/centrally managed accounts. Since there is no assurance of additional funding during FY01, OA22 will not be able to advance funds for requirements not currently funded.

In response to concerns that OA22 families would become bill payers for Army-wide bills, clarification was made that part of the current strawman strategy is that OA22 will focus on paying the MACOM operations bills only. Unfinanced requirements in the other two categories—high visibility/Army focus accounts and open allotment /centrally managed accounts will be considered Army bills since OA22 does not have the resources to support these UFRs.

Transportation subsidy: Appropriation that pays employee is responsible for funding the subsidy. This means active duty military personnel are funded by MPA, etc. Currently approximately 5,000 participants in the NCR. Details of the implementation of the program outside the NCR are still under discussion.

Manpower issues (Joan Wilson): Function of maintaining the Tables of Distribution and Allowances for OA22 has transferred to US Army Force Management Support Agency (USAFMSA) in accordance with the centralization of TDA documentation. USAFMSA will publish the staffing TDA in the November/December timeframe

Recommended that the OA22 senior RB meet to discuss the proposed strawman tax of 5% or $48M which would fully fund on-board strength or FY00 workyears executed; travel and GENOPS at 100% of FY99-00 average, 100% of fixed costs for postage, printing, and commo, and a minimum level of automation. This tax is in addition to the 2% ABO tax.

Ms. Riley concluded the meeting and thanked the participants for their attendance.