Fed IT spending to drop slightly in the FY 2013 budget

By Shawn P. McCarthy

Federal spending on information technology will flatline for fiscal year 2013, with total spending dropping about 0.7% for the coming fiscal year. The IT budget was announced as part of President Obama's overall spending plan, released along with the full federal FY 2013 budget this morning. IT spending alone is targeted at $78.9 billion for FY 2013. That's roughly $586 million less what was budgetd for FY 2012.

If approved, the budget, including this proposed IT budget, would take effect on October 1 of this year. In reality, it's unlikely that the proposed budget will make it through Congress without significant changes to this plan, especially with an election year looming. But in spite of that uncertainty, IT spending is not likely to change dramatically over what is shown in Vanroekel's budget.

Budget Details

Within the full budget, the administration elected to call some budget items out in a separate category labeled Overseas Contingency Operations. Based on that label, the budget outlines $96.7 billion (currently dedicated to unified Defense, State, and the Agency for International Development) as slated for a reduction of about 24 percent. However, these groups each have their own separate budget, shown below. TOCO shows an impressive set of cuts, but in reality, we still need to look at the full budgets for those agencies to get a clearer picture of total spending.

Meanwhile, the outlook for federal salaries is a mixed bag. This budget proposes a modest 0.5% increase in federal pay for FY2013. That effectively would end a two-year cost-of-living pay freeze for government workers. But Federal employees also have been told they will need to increase their contributions to their retirement program by 0.4 percent per year over the next three years. So their take-home pay will not be increasing by .5% next year.

Budget by Agency

  • Intelligence programs will receive $52.6 billion in discretionary funding for FY 2013. The quoted numbers did not indicate if this is an increase or decrease over previous levels.
  • Defense Department: Decrease to $525.4 billion, a drop of 1% over FY2012.
  • Veterans Affairs is the a winner from a percentage standpoint. The VA is slated to receive $64 billion, a 4.5% increase over the FY2012.
  • HHS: gets a minor boost - Now $76.4 billion, or $0.3 billion above the 2012 funding level.

Other Agencies

  • Department of Homeland Security: Decrease $39.5 billion, a 0.5% drop over FY2012
  • Education Department: Increase spending to $69.8B, a 2.5 percent increase over FY 2012
  • Justice Department: Decrease spending to $27.1B a drop of 0.4%
  • EPA: Decrease spending to $8.3 billion a 1.2% drop.
  • Agriculture: Decrease to roughly $23B, a roughly 3 % drop.
  • Commerce: Increase to $8B, a 5% boost.
  • Energy: Increase to $27.2B, a 3.2% boost.
  • HUD: Increase to $44.8 billion, a 3.2% boost
  • Interior: Increase to $44.8 billion, a 3.2% boost
  • Labor: Decrease to $12 billion, a cut that's just a fraction of one percent
  • State Department and the Agency for International Development: Increase to $51.6, a 1.6% boost,
  • Corps of Engineers: Decrease to $4.7 billion, down 5.4%
  • Transportation: Increase to $74 billion, up 2%
  • NASA: Decrease to $17.7 billion, down 0.3 %
  • National Science Foundation: Increase to $7.4B, up 4.6%
  • Small Business Admin: increase to $949 million, up 3%
  • Social Security Admin: $11.7B, a fractional increase

Shawn P. McCarthy is a member of the IDC Smart Government communuity, where this post was originally published.

Copyright 2012 IDC, all rights reserved.

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