Reductions in Force

In addition to monitoring last-minute legislation moving through Congress, the Association maintained close coordination with warrant officer organizations from the other services. In September 1981, Association President Theodore J. Falter met with Army and Navy warrant corps representatives at the U.S. Army’s Officer Personnel Management Directorate in Alexandria, Virginia.

Among the topics discussed were:
• Limited Duty Officer (LDO) promotions
• Chief Warrant Officer (CWO) selection criteria
• CWO prestige within the services
• Assignments and career progression
• CWO and E-8 / E-9 pay comparisons and proposed adjustments
That same year, President Ronald Reagan proposed sweeping reductions in federal budgets, pay, and personnel levels across various agencies. While the Department of Defense was largely spared, the Coast Guard—then under the Department of Transportation—faced significant budget pressure.
These reductions created an extremely lean operating environment. Discussions reportedly occurred within the Office of Management and Budget and the Department of Transportation about dramatically restructuring the Coast Guard. Although Deputy Transportation Secretary Darrell Trent publicly denied that dismantling the Coast Guard had been considered, concerns remained.
In February 1982, Association President Lewis J. Tolleson wrote directly to President Reagan to highlight the impact of the proposed cuts and to urge consideration of transferring the Coast Guard to the Department of Defense.
The Commandant, Admiral John B. Hayes, responded on behalf of the President. While he acknowledged that the reductions would affect the Service, he did not support transferring the Coast Guard to DoD.
As concerns grew, several bills were introduced in Congress to stabilize and even increase the Coast Guard’s budget—from just over $2 billion to approximately $2.55 billion.
At the same time, President Tolleson joined 14 other members of the Council of Military Organizations (COMO) in signing a joint protest opposing proposed cuts to military and retired pay. Letters of support were received from numerous active-duty and retired Coast Guard admirals, as well as members of Congress.
In May 1982, the Association published its legislative objectives, which included:
• Preventing harmful changes to military and retired pay
• Improving the Survivor Benefit Plan
• Securing retirement credit for enlisted reserve service
• Eliminating reductions in Social Security annuities for federal employees with prior military service
• Recomputing retired pay that lagged behind current standards
• Protecting appropriated fund support for commissaries
• Providing severance pay for enlisted personnel involuntarily separated before 20 years of service
• Allowing concurrent receipt of VA disability compensation and military retired pay
• Expanding CHAMPUS to include dental care
• Eliminating the discriminatory Dual Compensation Law
Throughout this period, the Association remained vigilant. It closely monitored Executive and congressional actions, issued letters and telegrams, and urged members to actively contact their elected representatives in defense of Coast Guard personnel and retirees.