Transcript Slide 1
The 2007 National Defense Budget and the QDR: Old Wine, Bigger Bottle Winslow T. Wheeler Director, Straus Military Reform Project Center for Defense Information February 2006 Quick Look Review: Department of Defense Spending (Constant 2006 Dollars) DoD Budget ($BN) Cold War Budget Avg. ($366.1 billion) 2007 Bush Plan (less "Long War") Korean War $600 Reagan Increase Vietnam War $500 Desert Storm $400 9/11 $300 End of Cold War $200 Start Clinton/Bush Increase $100 1947 1952 1957 1962 1967 1972 1977 Year 1982 1987 1992 1997 2002 2007 2 Quick Look Review: Army Divisions Relative to Army Budget Over 25 Years 40 $160 Army Divisions (Active & Reserve) Army Budget ($BN) 35 $140 30 27 25 24 24 24 24 25 28 28 28 28 $120 28 26 24 24 $100 20 20 18 18 18 18 18 18 18 18 18 18 $80 15 $60 10 $40 5 $20 0 $0 19 80 19 81 19 82 19 83 19 84 19 85 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 3 Quick Look Review: Naval Combat Ships Relative to Navy Budget Over 25 Years 800 $180 Total Combat Ships Navy Budget ($BN) 700 $140 600 500 477 491 513 514 524 569 566 567 556 546 542 526 $120 466 434 400 $100 387 373 365 357 333 300 $160 317 316 316 315 $80 296 292 290 $60 200 $20 0 $0 19 80 19 81 19 82 19 83 19 84 19 85 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 100 $40 4 Quick Look Review: Air Force Tactical Air Wings Relative to USAF Budget Over 25 Years 50 $180 USAF Tactical Air Wings (Active & Reserve) Air Force Budget ($BN) 45 40 37 37 38 37 37 37 37 37 37 37 $160 $140 36 35 35 $120 30 29 27 $100 25 22 20 21 20 20 20 20 20 $80 19 19 19 19 19 $60 15 $40 10 5 $20 0 $0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 5 Quick Look Review: National Defense Budget plus related Spending (“Total” Spending [Disc. + Mand.]) Category 2006 2007 DOD 412.3 441.2 War, etc. 125.8 50.0 DOD with War 538.1 489.3 (so far) DOE/Defense 18.1 17.0 “054” 5.6 4.8 National Defense 561.8 513.0 (so far) Homeland Security 38.4 41.6 DVA 70.4 77.8 International 27.7 33.7 Grand Total 698.3 666.1 (so far) 6 Mis-measuring the Defense Budget: Comparing to “Non-Defense Discretionary” 463 500 408 400 300 200 100 0 $Billions FY 2007 National Defense Request Total 2007 Non-Defense Discretionary 7 Really Mis-measuring Defense Spending: % of GDP (3.9%) 13030 14000 12000 10000 8000 6000 4000 463 2000 0 $Billions National Defense (2007) GDP 8 Still Mis-measuring Defense Spending: Comparing to Total Federal Spending (17%, But Still Apples to Oranges) 2757.9 3000 2500 2000 1500 1000 463 500 0 $billions Total National Defense (2007) Total Federal (Disc. + Mand.) 9 Another Way to Look at It Comparison to Others (2005 Data from CIA World Fact Book – except for U.S. and Russia) Defense Budgets ($Billions) 600 505.7 500 400 300 200 3.5 Russia 7.6 Taiwan 3.8 18 Saudi Arabia 5.2 23 Poland 45.8 Pakistan 4.3 9.1 North Korea 19 Israel 0.6 35.1 Iran 45 India 67.5 Germany 100 42.8 0 US UK Japan France Cuba China 10 Defense News’ Monday Headline 11 QDR: Where’s the Beef? • 10 USC118: QDR “shall ….identify the budget plan that would be required to provide sufficient resources to execute successfully the full range of missions called for in that national defense strategy….” • No budget plan in 2005 QDR • Due date for QDR shifted from September to December: intended to facilitate budget implementation. • Rumsfeld on 2/6: “The bulk of [the QDR] will be taken into account as the budget build starts now to be presented next February.” • Starts with and talks up “The Long War.” • Looks like a total of $17.3 billion in baseline 2007 request – out of $439.3 billion (4%) • 139 page DAPA Report on acquisition “reform.” • “considering” DAPA Report (QDR Report, p. 71) • Financial Management/”Underfunding” • Nothing on FM; almost nothing on ‘underfunding’ (CBO estimates plan/budget mismatch at $50 billion to $102 billion, per year.) 12 Combat Arms: The Right Direction? • 4,000 new SOF in 2007, plus USMC command, more UAVs, etc. • Enough for our best forces for insurgency? • Modularity to increase combat brigades from 48 to 70 • Decrease in full maneuver battalions (See IDA Studies at www.cdi.org/smrp) • Combat forces now to train not just for combat but also peacekeeping: two full time jobs. • Good Idea, but Congress is raiding the dollars. (-$282 million in 2006) • Bill Payer for Hardware; Not Reversed • December Directive on Stability Ops • Military to Civilian conversions • Army National Guard and Army Reserve and other service reductions 13 “Machines Don’t Fight Wars; People Do.” (If the Services Can Recruit back to, or above, 2006 Authorization Levels, Will the Hardware Programs Give the Money Back?) Service FY2006 DOD Appropriations’ Manpower Authorizations 2007 OMB/DOD Request Delta Army 482.4 482.4 -- Navy 352.7 340.7 -12.0 USMC 175.0 175.0 -- USAF 357.4 334.2 -23.2 Army Reserve 205 200.0 -5.0 Navy Reserve 73.1 71.3 -1.8 MC Reserve 39.6 39.6 -- AF Reserve 74.0 74.9 +0.9 Army National Guard 350.0 332.9 -17.1 Air National Guard 106.8 107.0 +0.2 Totals -58.0 14 Rumsfeld’s WMDs (Washington Monument Drills) • Army Reserve and National Guard Cuts • Dead Before Departure – more funding to come. • 2.2% Pay Raise for All • Dead on Arrival; more expenses to come. • End C-17 Production • First Ever Boxer-Hastert Coalition; more $ in outyears. • Tricare Cost Control • In Intensive Care Unit. Prognosis: Grave • Kennedy Retirement • Will there be an Act II? 15 And Buried in the Back • See p. 216 of OMB’s “Analytical Perspectives” for 2007 • Line Item Veto (Completely invisible to press. Is it serious?) 16