TAMU/ODP's budget outline involves a base budget of $34,832,449 and identification of special operating expenses (SOE) amounting to $2,823,223. The base involves a decrease of 1.76% from FY96. This decrease over the FY96 approved budget involves risks. For example, although full economy fares are authorized, ODP has budgeted travel at 60% to 65% of full economy based on historically negotiated lower fares and is forecasting no increase in industry prices. Except for the requirement to reimburse ODL at the subcontract rate on the Hull and machinery policy deductible, versus last year's rate, there is no programmed increase in insurance. In fact, ODP/TAMU assumes that either the same rates as in FY96 will be in effect or a decrease will result from safe operations. Equipment that would normally be replaced is being maintained, while maintenance/repair of selected items is being deferred. These actions involve risks, but are required to provide the basic services required in the FY97 Science Plan. The SOE total supports continuing development of the diamond coring system (DCS), development of the hammer drill system, formalization of the World Wide Web (WWW), a science operator's semiannual report, underway lab upgrade to Solaris 2.x, installation of indium antimonide XRF crystals, purchase of a split-core MST, expansion of JANUS, and sampling parties. These projects are discussed in more detail in the following pages and at the applicable cost center display. ODP/TAMU has experienced a significant reduction in graduate and undergraduate support to TAMU/ODP. The effects of these reductions will be felt in the elimination of the additional services these students provided above baseline services to the Program.
1801 Headquarters/Administration: The base for this cost center has decreased over 5% from FY96. The principal reductions have come in travel, supplies, training, shipping, and equipment. The challenge is to maintain training at a level that supports enhancements to the Program and keeps critical equipment functional until adequate funds are available to replace equipment items that enable optimum support to ODP/TAMU. Reduction in undergraduate support accounts for additional cost reductions.
1801-2000 Public Information: Returning to a previous reporting style, Public Information has been separated from the Headquarters/Administration request. There is an approximate 3% reduction from FY96 expenses identified with Public Information. The funds identified within this cost center support one employee, production of general ODP brochures, and other associated costs necessary to support the Program.
1802 Publications: The base reduction in this cost center totals 3.68% and was achieved by a combination of reductions begun in FY96 as a result of the PCOM mandate and by eliminating/reducing functional support activities (e.g., training, supplies, maintenance, etc.).
1803 Engineering and Drilling Operations: To get a clearer picture of fiscal year budget comparisons, it is necessary to compare the aggregate of the FY96 base and SOE with FY97 base and SOE requests. In FY97, unlike previous reports, specific salary support has been associated with specific SOE items. This results in an 8.49% (rounded) decrease in the total request. A combination of the base and SOE supports the development of innovative engineering projects, special hardware requirements for FY97 cruises, and general support to the Program. Some reductions were achieved by combining various expense categories into a single, existing cost center (e.g., "Drilling and Engineering - Office" now contains, monitors, and controls all travel funds for the department).
1804 Technical and Logistics: There is an approximate 7.1% reduction from FY96 in this cost center. As pointed out in the opening paragraph, risks are being taken in the area of maintenance and repair. In FY97 there has been a reduction of $160,000 in shipboard maintenance and repair. Because of port call locations, minimum additional savings occur in shipping costs; however, if shipping industry costs rise, this savings will quickly evaporate. Efforts continue to encourage seagoing technicians to take advantage of the alternate sea pay program, thus saving the Program money while not requiring the technician to return to College Station after each cruise.
1805 Science Operations: There has been a 3.2% increase in this cost center for FY97. This year, funds are identified in the base for purchase of equipment. In past years, equipment was not specifically identified and was purchased only when cost savings or purchase deferrals in other areas permitted reprogramming of funds for the purchase of equipment. Port call travel has also increased, but is offset by a reduction in the purchase of supplies. A significant reduction in this cost center was the elimination of graduate and undergraduate student assistance cited in the opening paragraph.
1806 Ship Operations: The fuel budget for FY97 represents refueling amounts required to maintain the minimum safety levels, whereas in past years full-capacity fuel purchases were made. Along with reduced amounts of fuel, ODP assumes there will be no increase in fuel cost. The risk is that there is no margin for error in the calculations and any significant increase in requirements or costs would have a significant impact on available resources. Two additional PPI increases, along with an unexpected FY96 PPI increase, are contained in this forecast. Travel has been budgeted at less than the full economy fare authorized by the subcontract and is dependent on a close working relationship with ODL. For the first time, the cost of observer participation is displayed in this cost center. Prior to the FY97 budget submission, observer costs were reprogrammed from base budget funds in the particular fiscal year the expense occurred.
1809 Information Services and Curation: The increases in payroll, travel, training, port call travel, and communications can be attributed to two actions taken within TAMU/ODP. First, the marine computer specialists (6) were moved from 1804 to this cost center. This action triggered an increase in salaries, training, and travel, both domestic and to port call. Second, initiation of the completed JANUS Project and the data migration effort carries with it attendant increases in software and training. The increase in communications in this and other cost centers is attributable to a change (increase) in international billing rates. Overall, the base in this cost center has increased by 3.2%.
Salary and Fringe: An increase of only 2% is contained in this request. If the state mandates a higher level, either additional external funds or reprogramming within the approved budget will be required, with attendant reductions in services. Every 1% represents approximately $79,500. The overall payroll was reduced an additional $253,000 in order to meet the assigned target in the base budget. A review of structure will be undertaken prior to the beginning of FY97 in an attempt to identify any potential reductions. This sum will need to be added back to the FY98 budget if that effort is unsuccessful.
[UPDATED August 20, 1996]