Avoid, fix or delay. There will be no rest for the 113th Congress which convened on Jan 3.In their last-minute fiscal cliff deal, Congress not only failed to resolve the sequestration dilemma, they delayed it until March 1, just in time to take up the continuing resolution that expires on March 27, the bump against the debt ceiling limit and the release of the president’s budget request for fiscal 2014.The early months of 2013 are going to be rocky.Here is a breakdown:Sequestration – Automatic spending cuts (sequestration) to defense and domestic programs which were scheduled to take effect on Jan. 2 were delayed to March 1.The fiscal cliff deal reduced the required $109 billion sequestration by $24 billion [to $85 billion, with half still to come from defense], and replaced those two months of cuts with a combination of other spending cuts and revenue increases.Also, because defense spending in the current continuing resolution is higher than the cap contained in the 2011 law, the Pentagon is also facing a separate $11 billion sequestration.The fiscal cliff deal delayed that until March 27.Continuing Resolution (CR) – Way back in Sept. 2012, instead of passing routine appropriations bills, Congress approved a CR that extended government spending through March 27.If the deadline passes and no agreement on spending is reached, Congress can either pass another CR extending the deadline or the government shuts down.Debt ceiling – As this publication goes to press, the Senate is scheduled to consider House-passed legislation that will raise the debt ceiling through May 18.The debt limit is the total amount of money that the government is authorized to borrow to meet its existing legal obligations.Obligations include Social Security and Medicare benefits, military salaries, interest on the national debt, and tax refunds.Failure to increase the debt limit would have catastrophic economic consequences, causing the government to default on its legal obligationsThe president’s FY 2014 Budget Request – The administration’s budget request was due on Capitol Hill by the first Monday in February. However, it will be delayed until March. It doesn’t really matter because it will land in Congress at the same time as all of the other big ticket items.One thing we will not have to worry about until the end of the year is the "doc fix." The measure blocks the scheduled 27 percent reduction in the Medicare reimbursement for physician services through Dec. 31.AUSA thanks all of you who took the time to contact your members of Congress on this issue.Odierno: ‘National security at risk.’ Along with top Army leaders and members of the defense industry, key congressional staff members heard a sobering message from the Army chief of staff at a recent AUSA Institute of Land Warfare breakfast. (See related story, Page 2.)Gen. Raymond Odierno’s message was clear: Our national security is at risk because of the fiscal uncertainty that we face today.The numbers are sobering – a $6 billion shortfall for FY 13 in Army operation and maintenance accounts because Congress has failed to pass appropriations legislation and the Army must spend at the FY 13 budget levels.If sequestration triggers on March 1, another $6 billion shortfall will occur. Combined with other underfunding, the total shortfall for FY 13 could be $17 billion – in wartime!Odierno outlined the steps the Army is taking to remain effective while dealing with the lack of funding – cancelling combat training center rotations, delaying depot work and cancelation of maintenance for vehicles that are not bound immediately for the current fight, freezing civilian hiring, potential furloughing of existing employees and laying off temporary workers.The bottom line is training and, therefore, readiness will suffer.He described the end-strength reductions to 490,000 that will occur and said that if sequestration triggers, the numbers could dip further.Odierno told the audience that what the Army needs most is some budget predictability through several years so that end-strength, modernization and readiness can be carefully balanced and a hollow force avoided.AUSA, through a series of letters, has been urging Congress to solve the sequestration puzzle now, and we have highlighted the significant dangers posed by sequestration and the repeated use of continuing resolutions to fund our Department of Defense.Unfortunately the military-related headlines in major newspapers today focus on side issues that serve only to take the eyes of the American people off of the key issue – the fiscal process must be put back in order so that our defense forces can maintain readiness and their ability to defend this nation.New legislation spotlight. Two bills that address concurrent receipt have been introduced in the House.Rep. Sanford Bishop, D-Ga., introduced H.R. 333, The Disabled Veterans Tax Termination Act, legislation that would permit retired members of the armed forces who have a service-connected disability rated less than 50 percent to receive concurrent payment of both retired pay and veterans’ disability compensation.The bill would also eliminate the phase-in period for concurrent receipt and extend eligibility for concurrent receipt to Chapter 61 disability retirees with less than 20 years of service.Introduced by Rep. Gus Bilirakis, R-Fla., H.R. 303 would permit additional retired members of the Armed Forces who have a service-connected disability to receive both disability compensation from the Department of Veterans Affairs for their disability, and either retired pay by reason of their years of military service or Combat-Related Special Compensation.It would also eliminate the phase-in period under current law with respect to such concurrent receipt.