More Sequestration

Pentagon press secretary George Little today got more questions regarding sequestration and its possible effects on the defense budget during a scheduled news conference. The exchange went like this:

Q: For the record. AIA put out a new statement, a new study today on jobs losses. I want you to be clear on sequestration. What impact will sequestration have on contracts funded with obligated 2012 dollars, in layman's language, contracts that were signed up until September 30th of this year, funded with dollars approved by Congress for this fiscal year. Will they be terminated, whacked, reduced, affected in any way?

MR. LITTLE: I'm not sure if "whacked" is a technical budget term, but let me try to put this into English that's perhaps a little less plain than that. Sequestration cuts would not affect current contracts funded with FY '12 dollars, that is, obligated funds. Anything put on contract between now and September 30th, the end of the fiscal year, would also not be affected or be subject to sequestration. All FY '13 dollars would, however, be subject to sequestration. And FY '13, as you know, begins August 1st -- excuse me, October 1st.

Q: Even if those FY '13 dollars were obligated, put on contract, in layman's language, between October 1st and January 1st when sequestration, you know, could take effect, those dollars would be affected? Those contracts would be affected?

MR. LITTLE: FY '13 dollars would be effected by sequestration, period. That's right.

Q: Obligated and unobligated?

MR. LITTLE: All funds.