We are providing information about the implementation of our new agency budget structure through myth-busting and sharing facts that help us all learn together.

Myth #4: The agency received less funding for facility maintenance because of the new budget structure. 

Fact #4: The new budget structure moves facility funding into two budget line items:  

1. Facility maintenance and leases, FSLM, which funds long-term leases, security costs paid through Federal Protection Services, tenant improvement costs, rent paid to partners through agreements, and owned fire, administrative and other facility maintenance.
2. Facilities capital improvement and maintenance, CMFC, which funds capital improvement projects, recreation facilities and dams.

The new budget structure itself does not make less funding available for facility maintenance, but it does create new tradeoffs. For FSLM, trade-offs now occur between base facility maintenance funding, priority project funding for maintenance, and funds needed for long-term leases. Facility costs continue to rise. The agency has over 400 leases expiring in the next five years that represent 50% of our lease costs. New leases typically increase in cost 5-10%. Annual maintenance costs for owned facilities increase approximately 2% each year, adding to the agency’s deferred maintenance backlog of $1 billion. In a flat budget, decisions around leased and owned facilities will determine the split of funding available to cover lease costs and owned facility maintenance. 

In addition, salary and expenses that were previously charged to CMFC have been moved to the new S&E budget line items. While this may create the perception that there is less funding for facilities, moving S&E eliminates a tradeoff the agency used to manage.

The agency must right-size these realigned budget line items and balance them against other demands so we can serve and support our workforce and mission. To do so, we are creating investment boards to holistically look at space needs and strategize the appropriate types of facilities for agency investment.  

The agency also continues implementation of the Comprehensive Capital Improvement Plan. This plan will help the investment boards right-size the portfolio of agency-owned assets, improve planning and decision-making for capital investments, decrease the deferred maintenance backlog, and reduce the overall demand for facilities maintenance.

For more detailed information about current budget operations and FAQs, you can visit FY2021 Appropriated Budget Structure (internal site) or contact your local budget officer.

Budget Myth vs. Fact: Funding training