Encl. (1) to COMDTINST 7132.5
BUDGET MODEL GUIDANCE
1.
General. The District Budget Model is the first significant effort to quantify the AFC-30
budgets of the 10 districts using an objective standards based methodology. It accomplishes
this by assigning a funding standard to all of the various assets and services within a district.
The summation of the funding for each standard determines the appropriate funding level for
the district. Incremental or decremental changes to a district's assets or service requirements
ideally will cause an associated incremental or decremental change in the funding level of that
district in accordance with the applicable standard. The Model represents the most in-depth
analysis ever conducted of the recurring funding provided to the districts. The Model
addresses recurring AFC-30 funding only and does not address nonrecurring funding such as
energy, wage grade, and funding provided on a onetime basis from HQ program managers.
2.
Model Description. The Model was developed using three funding areas: (1) assets (e.g.,
boats, aircraft, vehicles and ships), (2) services/requirements (e.g., telecommunications,
operational travel) and (3) district unique (e.g., leases, D8 offshore helo contract and D14 dive
teams). Enclosure (2) provides a more in-depth description of these funding areas and the
algorithm used.
3.
Acceptable Range. The degree of confidence associated with most of the Model's standards is
quite high. However, because the District Budget Model represents the Coast Guard's initial
effort at a standards-based model, an acceptable range was developed and applied to the
funding target for each ATU. Presently, this acceptable range is plus or minus 7.5%. In
essence, the funding level predicted by the model is kept within 7.5% of the district's base. If a
district's base is within this acceptable range, then no change is made to the base. The ultimate
goal is to reduce the confidence interval to zero.
4.
Policy.
a.
Commandant (G-CFP) shall fully implement the District Budget Model in FY95.
b.
Commandant (G-CFP) shall also ensure that the Model is updated annually, including
revised model standards. Annual adjustments will be made to district targets based on
changes of assets or other modifications to the Model.
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