Defense Budget Issues

1
Defense Budget Issues

• August 23, 2007

2
Overview

• Objectives
• To review the major components of DoD's budget,
  specifically
• Funds appropriated for FY 2007
• Outstanding Requests before Congress for FY 2008
• Congressional actions to date on DoD requests
• Glance at FY 2009
• To discuss the progress of OSD-Comptroller budget
  systems consolidation and transformation

3
Defense Budget
Priorities

• Prevail in the Global War on
• Terror

• Increase Combat Capability
• Improve Force Readiness
• Develop Future Combat
• Capabilities
• Improve Quality of Life

Source Defense Appropriation Act and Emergency
Supplemental Appropriation FY 2007 and FY 2008
DoD Budget Request
4
FY08 DoD Budget in Context
Housing, Health, and BRAC constituted much of the
increase
Total GWOT Appropriation to Date 549B
in Billions
623
164
602
537
506
443
444
342
319
DoD Base Budget and non-GWOT Supps.
GWOT
Enacted FY07 Supplemental
FY08 Presidents Budget FYDP
FY07 Allowance
FY08 GWOT Request
FY08 Presidents Budget
Non GWOT Supplemental Funding
Source National Defense Budget Estimates for FY
2008, Table 1-9
5
The FY 2008 Presidents Budget for Defense
481.4B
Military Pay Healthcare (137.0B)
Readiness Support (146.5B)
Family Housing Facilities (21.1B)
Strategic Modernization (176.8B)
481.4B
Improves Force Readiness and Modernizes
Warfighting Capabilities
Source Defense Appropriation Act and Emergency
Supplemental Appropriation FY 2007 and FY 2008
DoD Budget Request FY06 Base Structure Report
6
Military Pay Benefits and Healthcare and
Facilities
Military Pay Healthcare (137.0B)

• Pay and Benefits (98.3B)
• 2.1 million active and reserve members
• 15.0 billion for Basic Allowance for Housing
• 4.3 billion of Basic Allowance for Subsistence
• 2.4 billion for recruiting bonuses and retention
• Healthcare (38.7B)
• Sustains one of the best healthcare programs in
  the world
• Provides high quality care for 9.2 million
  beneficiaries

Family Housing Facilities (21.1B)

• Family Housing (2.9B)
• BRAC implementation (8.2B)
• Strategic realignment 24 major realignments and
  25 base closures
• Maintain Training Centers and Base Infrastructure
  (10.B)

Attract and Retain High Quality Personnel
7
Readiness and Modernization
Readiness Support (146.5B)

• Readiness (65.9B)
• Training to be ready for the full range of
  contingencies
• Base Operations and Recruiting (59.9B)
• Daily operation of bases worldwide
• Maintain Equipment and Buildings (18.2B)
• Commissaries (2.5B)

38.7B
Strategic Modernization (176.8B)

• Ships and Navy Aircraft (62.4B)
• Supports 30-year shipbuilding plan (8 ships)
• Aircraft and Satellites (50.9B)
• Ground Capabilities and Support Systems (37.9B)
• Science Technology and Chemical-Biological
  Defense Research (16.8B)
• Missile Defense Agency (8.8B)

Sustains Critical Readiness and Invests in Joint
Capabilities to Meet Future Threats
8
Budget Provides Real Increases to Support the
Warfighter
49.4B FY08
Improve Force Readiness Support 16.8B 34
49.4B
IncreaseGround Forces 12.1B 24
(Dollars in Billions)
Develop Future Capabilities 8.8B 18
ImproveQuality of Life 11.7B 24
FY07
FY08
FY07
FY07
Base Budget Increases by 49.4B (11.4) Over
Projected Enacted Level Real Rate of Growth is
8.7
Source Defense Appropriation Act and Emergency
Supplemental Appropriation FY 2007 and FY 2008
DoD Budget Request
9
FY 2008 Budget by Service
(Discretionary Budget Authority, Dollars in
Billions)
Note FY07 excludes Title IX and includes
projected Military Construction/Quality of Life
programs
10
FY 2008 Title Breakout
(Discretionary Budget Authority, Dollars in
Billions)
Note FY07 excludes Title IX and includes
projected Military Construction/Quality of Life
programs
11
Prevail in the Global War on Terror
Continuing the Fight
Enhancing U.S. Forces
Reconstituting the Force
Provide Resources Necessary for Success in the
Global War on Terror
12
FY 2007 Emergency Supplemental(Enacted May 25,
2007)
Continuing the Fight 69.7B
Fuel 0.4B
Operations 39.2B
(Permanent End Strength 4.9B)
Force Protection and IED Defeat 12.3B
Military Intelligence 2.4B
Non-DoD Classified 3.6B
Security Forces 9.7B
PRTs and Iraq Factory Restart 0.2B
Coalition Support and CERP 1.0B
Military Construction 0.9B
Housing, Health, Base Realignment and Closure
5.2B
99.5B
Continuing the Fight
Reconstituting the Force
Congressional Adds
Enhancing U.S. Forces
Note Breakout by Functional Category is based on
preliminary assessment and may change the
Enacted FY 2007 Emergency Supplemental had an
additional 0.4B allotted to Continuing the
Fight, 0.3B allotted to Reconstituting the
Force, 5.2B allotted to Congressional Adds, and
0.2B allotted to Enhancing U.S. Forces Source
Defense Appropriation Act and Emergency
Supplemental Appropriation FY 2007 and FY 2008
DoD Budget Request
13
FY 2008 GWOT Request
Continuing the Fight 102.5B
Force Protection IED Defeat 15.2B
Operations 70.6B
(Permanent End Strength 4.9B)
Military Intelligence 2.7B
Security Forces 4.7B
Non-DoD Classified 5.9B
Coalition Support CERP 2.7B
Military Construction 0.7B
Reconstitution 37.6B
141.7B
Continuing the Fight
Reconstituting the Force
Enhancing U.S. Forces
Source Defense Appropriation Act and Emergency
Supplemental Appropriation FY 2007 and FY 2008
DoD Budget Request
14
Congressional Action to Date
(Dollars in Billions)

302b allocation reduces defense request by
-3.5B Source House Armed Services Committee
Bill HR1585 and Senate Armed Services Committee
Bill S1547
15
FY 2009 Priorities

• Continue the Global War on Terror
• Mine Resistant Ambush Protected Vehicles
• Reconstitution
• Wounded Warrior
• Improving Medical Care
• Continue to Grow the Force
• Army and Marine Corps
• Sustain Readiness
• Implement BRAC

16
OSD-Compt Budget System Consolidation
OSD-Comptroller is making a major effort to
modernize its information management systems

• Goals
• Create an integrated system concept in harmony
  with BTAs Business Enterprise Architecture and
  its Enterprise Transition Plan
• Design pliant system capable of rapidly adapting
  to changing PPBE processes
• Enable easy and rapid information access and
  sharing
• Reduce cost of system construction and ownership

Improvement in the OSD-Comptroller systems will
improve responsiveness to needs in the field
17
OSD-Compt Budget Systems Consolidation and
Transformation
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Take-Away

• FY 2007 Budget
• Execution is under-way
• FY 2008 Budget
• Base budget pending conference
• Continuing Resolution Authority highly likely
• Supplemental pending appropriations committees
  markup
• September Iraq report will drive change
• FY 2009 Budget
• OSD/OMB review starts August 31
• Review will be done by January 2008
• OSD Comptroller is Transforming its business
  processes and systems

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Discussion