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KRT Impact Blog

Budget Dive FY2015: Treasury

With the release of the FY 2015 Federal budget and additional resources by the Government, KRT Associates is going to be taking a look into different agencies to see what the main considerations from the budget are and where are the potential business opportunities. We will also be doing a holistic review of the budget as more budget documents are released over the last month so keep your eyes peeled for that, in the meantime take a look at our previous IT budget review from FY2014.

What is the Department of the Treasury?

According to the Department of the Treasury, their mission statement is: Maintain a strong economy and  create economic and job opportunities by promoting the conditions that enable economic growth and stability at home and abroad, strengthen national security by combating threats and protecting the integrity of the financial system, and manage the U.S. Government’s finances and resources effectively.”

The Department of the Treasury is made up of several different bureaus with a relatively diverse mission area and even includes a member in the Intelligence Community that is focused on stemming the flow of funding to terrorist groups.

The larger components of the Department include:

The FY2015 Budget and what it means for the Department of the Treasury

The Department of Treasury is typically one of the larger Federal Civilian agencies from a budgetary standpoint and the FY2015 budget looks to provide treasury with a significant increase in the size of their overall budget.

The funding highlights from the Treasury FY2015 budget include:

For many Treasury contractors that have been struggling with sequestration level funding – the FY2015  budget should allow programs that had been delayed or derailed due to funding issues to get back on track.

Treasury’s Information Technology Budget

The overall Treasury IT budget will increase 13.4% from Fiscal Year 2014 to Fiscal Year 2015 from $3.5B to approximately $3.97B. Similarly to the overall Treasury Budget the Internal Revenue Service gets the lion’s share of Treasury’s IT budget. Most the IT budget at Treasury is dedicated to two major areas:

Along with these big ticket items at Treasury – Security Management, Collaboration Tools and IT Strategy and Innovation all received an increase of over 50% in funding from FY 2014.

What does this mean?

The good news all around is that there is an actual budget to work with at the Department of the Treasury. Most of the budgetary allocation is going to the IRS but that doesn’t mean there won’t be opportunities for business at the other Treasury bureaus and offices. With an actual allocation of funds the bureaus can actually plan for next the fiscal year and as contractors we should be hearing the statement, “we are trying to find funding” less often.

This budget however doesn’t mean we are returning to the 2000s heyday of IT spending, the Department is still very interested in efficient and cost-effective solutions – consolidation, cloud migrations and shared services are still very important buzz words and worth remembering. Focus on providing solutions that enable core bureau and agency mission and have strong cost and program management oversight. I have provided a few high-level areas that are getting increases in funding that are important to look at but these are not the sole areas worth a look at Treasury.

If you have any interest in Cloud computing, specific IT programs, or investment areas at the Department of the Treasury – there is a lot more cool data and information released with the budgets that we can detail and provide insights into. Stay tuned for our next Agency budget dive – up next the General Services Administration!

Feel free to reach out to us with any questions about the data or analysis in this blog.  Reach out to us via emailLinkedinFacebook, or Twitter!