As an organization that is also part of the armed services, the Coast Guard has both military and civilian positions. (Dollars in Millions)

	Events of September 11th Substantially Affected Some Coast Guard Missions

For the Coast Guard, the events of September 11th produced a dramatic shift in resources used for certain missions. The Coast Guard relocated vessels, aircraft, and personnel from traditional missions—especially law enforcement—to enhance security activities. Fiscal Year 2003 Budget Request Reflects Changing Mission Priorities

The fiscal year 2003 budget request of $7.3 billion would increase the Coast Guard’s budget by about $1.9 billion, or 36 percent, over the fiscal year 2002 budget. Funding for operating expenses for all of the Coast Guard’s mission areas would increase from fiscal year 2002 levels. Coast Guard Faces Difficult Budget and Management Challenges

While the fiscal year 2003 budget request provides funding increases for every mission area, these increases alone may not return all of its missions to levels that existed prior to September 11th. The Coast Guard does not yet know the level of resources required for its “new normalcy”—the level of security required in the long term to protect the nation’s major ports and its role in overseeing these levels. As a result of its new emphasis on homeland security, the Coast Guard plans to hire over 2,200 new full-time positions to its workforce and increase its pool of reservists by 1,000 if its funding request is approved—putting added strain on its recruiting and retention efforts.
What GAO Found

Like many federal agencies, the Coast Guard's priorities were dramatically altered by the events of September 11. The Coast Guard has requested $7.3 billion for fiscal year 2003--a 36 percent increase from the previous year. The events of September 11 caused a substantial shift of effort toward homeland security and away from other missions. As resources were shifted to meet these needs, the law enforcement mission area, which consists mainly of drug and migrant interdiction and fisheries enforcement, saw a dramatic drop in mission capability. The Coast Guard's fiscal year 2003 budget request reflects an attempt to maintain and enhance heightened levels of funding for homeland security while also increasing funding for all other Coast Guard missions beyond fiscal year 2002 levels. The Coast Guard faces substantial management challenges in translating its requested funding increases into increased service levels in its key mission areas. For example, workforce issues present a daunting challenge. If the budget request for fiscal year 2003 is approved, the Coast Guard will add 2,200 full-time positions, retain and build on the expertise and skills of its current workforce, and deal with already high attrition rates and looming civilian retirements. The Coast Guard has yet to determine the long-term level of security needed to protect the nation's major ports. These challenges mean that, in the short term, additional funding may not increase the Coast Guard's ability to carry out its missions.