mr. brian k. cummings chief, budget integration & evaluation assistant secretary of the army

Army Budget Office9 May 07

Mr. Brian K. CummingsChief, Budget Integration & Evaluation

Assistant Secretary of the Army(Financial Management and Comptroller)

FY 2007 and FY 2008 FY 2007 and FY 2008 Budget UpdateBudget Update

18 Apr 07


Win the Long War Sustain the All-Volunteer Force with Improved

Quality of Life Build Readiness for Today and Tomorrow’s

Challenges Accelerate the Future Force Modernization

Strategy and Implementation Re-station Army Forces in Line with the Global

Defense Posture Realignment and BRAC/MILCON Strategy

Army FY08/09 Budget Themes


0

50

100

150

200

250

300

350

400

450

500

550

600

650

1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

0%

10%

20%

30%

40%

Korea

Vietnam

ReaganBuildup War on

Terrorism

$618B

WW II $567B$480B

$518B

$600B+

DoD Budget Authority

DoD Budget Authority Since WW II$

(Bil

lio

ns)

Co

nst

ant

FY

07 D

oll

ars

Do

D %

of

Gro

ss D

om

esti

c P

rod

uct

(G

DP

)

KoreaKorea14.2%14.2%

KoreaKorea14.2%14.2%

VietnamVietnam9.5% 9.5%

VietnamVietnam9.5% 9.5%

Reagan Reagan BuildupBuildup

6.2% 6.2%

Reagan Reagan BuildupBuildup

6.2% 6.2%

3.0% in 2000--Lowest 3.0% in 2000--Lowest since prior to World since prior to World

War II. War II.

3.0% in 2000--Lowest 3.0% in 2000--Lowest since prior to World since prior to World

War II. War II.

GWOTGWOT3.9%3.9%

GWOTGWOT3.9%3.9%

WW IIWW II37.9%37.9%

WW IIWW II37.9%37.9%

40%

Source: National Defense Budget Estimate for 2007, OUSD(C), March 2006 FY07 and FY08 includes pending supplemental request funding amounts.


Current Fiscal Guidance

$90

$95

$100

$105

$110

$115

$120

$125

$130

$135

$140

$145

$150

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

$B

Current Fiscal Guidance (Includes Growth)

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

+$68.9B

FY07 President’s Budget

Revised OctoberFiscal Guidance

Initial April 2006 Fiscal Guidance

+$52.1B

95.9

101.099.2

110.1

130.0

140.7

FY 04-06 Actuals

FY 07 Appropriation


Army Budget Authority ($B)

AppnAppropriation FY07 FY08 FY09Military Personnel 43.1 46.2 51.3Operation and Maintenance 31.7 37.7 40.4Procurement 15.4 23.8 26.2RDT&E 11.0 10.6 9.8Military Construction 2.7 4.6 5.7Army Family Housing 1.3 1.2 1.5Base Realignment and Closure 3.7 4.1 3.8Chemical Demilitarization 1.3 1.5 1.4Other 0.5 0.6

Totals 110.1 130.0 140.7

PresBud Request

Totals may not add due to rounding.


FY08/09 Budget Authority

OTHER9%

PROCUREMENT18%

OPERATION AND MAINTENANCE

29%

MILITARY PERSONNEL

36%

MILITARY CONSTRUCTION

4%RDT&E8%

Other<1%

BRAC3%

CHEMICAL DEMILITARIZATION

1%

ARMY FAMILY HOUSING

1%


$4,916

$5,520$5,226

$6,858 $6,802

$7,400

$1,033

$719 $1,272

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

FY04 FY05 FY06 FY07 FY08 FY09

Additional Funding Increased BaselineFunding

Base Operations Support (OMA)

$6,239$6,498

$M

$5,949

Actual Execution PresBud Request


The Global War on Terror Request….

Reconstitutes the ForceMaintenance / Reset / Munitions / Battle Losses / Army Pre-positioned Equipment / War Reserves

Force Readiness – Restoring the Depth

Supports Force GrowthEnd-strength / Facilities / Equipment

Supports the Deployed ForceIn-theater Sustainment / RC Mobilization / Force Protection /

Special Pays / Soldier & Family Support Programs

Prepares Next DeployersRecruiting & Retention / Tactical Equipment /

RC Readiness & Mobilization / Power Projection Platforms


FY07 and FY 08 Army GWOT Requests

FY2007 and FY 2008 figures exclude JIEDDO, ISFF, and ASFF

GWOT Requests ($B) FY 2007 1, 2 FY 2008Military Personnel $13.8 $13.2

Operation and Maintenance $49.6 $46.9

Research, Development, and Acquisition $26.1 $21.3 3

Military Construction $1.3 $0.7

AWCF $0.7 $1.4 4

TOTAL $91.5 $83.4

Notes:1. Includes $43.8B already received thru Title IX2. Includes FY07 Supplemental Amendment3. FY08 RDA includes $6.1B in deferred FY07 items.4. FY08 AWCF figures include $0.9B in deferred FY07 war reserve stocks.

FY07 Congressional Marks Range $91.3B (Senate) - $91.6B (House)


Army Base + GWOT Funding – FY03-09 ($B)

0

30

60

90

120

150

180

210

240

GWOT 27.8 40.6 57.7 66.6 91.5 83.4 TBD

Base Appn 94.5 101.0 103.1 104.9 110.1 130.0 140.7

Total Army

FY03 FY04 FY05 FY06 FY07 FY08 FY09

• Army FY03-08 Supp Funding = ~ $367.6B• Army FY03-08 GWOT Growth = $55.6B * Note: FY 07/08 Supp requests pending

?

122.3 160.8 171.5141.6 201.6 213.4

* *

Actuals RequestNote: Figures do not include JIEDDO, ISFF, ASFF


Strategic Context & Challenges

New leadership Army/DOD Congress

Supports Army Soldiers and Families Increased oversight and scrutiny of strategy and policies

Army Resourcing Focus Timeliness of FY07 Supplemental, FY08 Budget, and FY08

GWOT Request Grow the Army BCT Acceleration Increase availability of Reserve Forces FY09 will be final Budget this administration will submit


FY07 House and Senate Supplementals Compared

• Redeploy troops 120 days from enactment• Non-binding withdrawal of combat forces by March 31, 2008• Benchmarks for Iraqi Government, with progress reports from MNF-I and independent study of Iraqi military• President reports to Congress progress and changes to the Iraqi mission and redeployment of troops every 90 days

• July 1, President certifies Iraqi progress on political and military benchmarks• Oct. 1, President certifies benchmarks have been met• 6 month troop pull out begins if benchmarks are not met; Mar. 1, 2008 final troop withdrawal begins; completed end Aug. 2008• President can waive readiness and dwell time requirements

HOUSETotal $124.3 billion

SENATETotal $123.2 billion

DEFENSE

OTHER ANTI- TERRORISM

DISASTERASSISTANCE

OTHER

IRAQPROVISIONS

$95.5B (Army $47.8B)

$12.6B

$10.1B

$5.7B

$93.5B (Army $47.5B)

$10.4B

$10.9B

$8.3B

Spending Highlights

10 Apr 07Source: CQ Today, 9 Apr 07


FY07 Phased Plan to Restrict Spending

The Army will take actions to slow spending, for example Slow the purchase of repair parts/supplies Postpone/cancel non-essential travel. Limit shipment of equipment/supplies to those needed for war efforts. Limit repairs to facilities to those for safety or health reasons.

These actions carry consequential effects: Substantial disruption to operations Decreasing efficiency, and Potentially further degrading the readiness of undeployed units.

Reprogramming pending of $1.6 billion from other DOD accounts to the Army will help, but

Current plan is only sufficient to keep operations running to about the end of June.


Growing the Army & BCT Acceleration

FY07 FY08 FY09 FY10 FY11 FY12 FY13 Total Active Growth in the Supp 36K 36KActive Growth in the Base 0 7K 50K 57K 64K 65K 65K 65K

Army Guard Growth in the Base 0 1.3K 2.6K 3.9K 5.3K 6.8K 8.2K 8.2K

Army Reserve Growth in the Base 0 0 0 0 0 0 1.0K 1.0K

Funding Requested by Appropriation FY07 FY08 FY09 FY10 FY11 FY12 FY13 Total Military Personnel 0.7 3.9 4.6 5.2 5.5 5.6 25.4Operation and Maintenance 0.0 0.6 2.6 2.9 3.1 4.3 2.6 16.1Procurement 0.9 4.1 4.2 5.1 3.0 0.6 0.0 17.9Military Construction 0.4 2.4 4.3 2.4 0.7 0.5 0.1 10.8

Total $ Increase for Army Growth ($B) 1.3$ 7.7$ 15.0$ 15.0$ 12.0$ 10.9$ 8.3$ 70.2$

Growing the Army – Endstrength & Cost

FY07 Supplemental BCT Acceleration CostAPPN COST

MILPERS $640.0O & M 177.3RDA 2028.4MILCON 1.5TOTAL ($M) $2,847.2


Backups


Sustainment, Restoration and Modernization (OMA)

$1,234$1,472

$1,814 $1,811$2,031

$2,228

$390

0

500

1,000

1,500

2,000

2,500

FY04 FY05 FY06 FY07 FY08 FY09

CRAdditional Funding

Increased BaselineFunding

$M

$1,472

$2,204

$1,234

Actual Execution PresBud Request

mr. brian k. cummings chief, budget integration & evaluation assistant secretary of the army

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