LLNL Director's update

LLNL Director's update of FY13, FY14 budget decisions
6/24/2013

This update comes at a time of evolutionary change for our Laboratory. We have experienced the departure this month of 399 employees through the Self-Select Voluntary Separation Program (SSVSP) and said farewell to many of our colleagues as they begin new experiences. Much has happened since my last update, and I want to thank you for your patience. I know this message is long in coming -- it was important to wait until I had accurate information to give you.

These past weeks, I have been working closely with Laboratory senior managers to pursue all available options to address the many challenges we have faced due to sequestration in FY13, as well as the proposed budget for FY14. Finding solutions that provided the least impact to employees has proved more complicated than anticipated...

While it has been difficult to adjust to the void left behind by our colleagues who participated in the SSVSP, its outcome will help right-size the Lab to meet the unfolding elements of the proposed FY14 budget and beyond. We must now look to ways to address the workload that had once been filled by those employees, while living with the reduced funding brought on by sequestration. We are in the process of identifying those areas and organizations that were significantly impacted by the SSVSP so that we can get back to a balanced level of service and a balanced workload for employees.

We are in the process of adjusting to a new budget reality for FY13 that is $100 million less than anticipated prior to sequestration, and have addressed this challenge through a number of adjustments and actions - including cost cutting in procurements, travel and overtime; reprogramming actions, staffing changes associated with the SSVSP and supplemental labor; and other actions.

Because of these actions and the follow-through commitment of the senior management team, I am announcing the cancellation of the Lab's salary reduction/closure day program. However, it is clear we cannot return to past spending practices. We must continue to manage this gap through actions such as those listed above.

Consistent with benefit plan needs, the Lab will make the $40 million employer contribution this fiscal year to the TCP1 pension plan, as originally planned. Participating employees will see their contributions increase from 5 percent to 7 percent as initially planned beginning July 1 (paycheck date of July 19). We believe these combined efforts will ensure our pension plan remains strong.

I understand these announcements answer many of your questions, but also raise a few more. I want to thank you for diligent efforts to stay focused, and I ask for your patience as we continue to align the Lab to its fiscal realities. As always, I promise to keep you informed as I receive additional details.

In the coming weeks and months, we will take some time to assess our workforce and reset expectations. Because external hiring will be restricted for the next 12 months to a ceiling established under the SSVSP, there will be challenges in redeploying staff to responsibly fill gaps created by the SSVSP. It is important that we have an open dialogue with our sponsors to adjust expectations resulting from lower budgets and staffing levels.

Because of the impacts on the workforce, and the potential for getting distracted by these larger issues as we carry out our work, it is essential that we carry out a period of "deliberate operations" -- providing additional direct and sustained management and employee attention on ensuring safe, secure and compliant mission performance. Remember, you are always encouraged to use the safety pause authority today and everyday when faced with a concern.

The missions this Lab performs are important to the nation. Despite the stresses the current budget environment puts on this Lab (and the larger national security enterprise) we will continue to innovate and do great things for the nation.