News Release

NO.032-99
(703)695-0192 (MEDIA)
IMMEDIATE RELEASE FEBRUARY 1, 1999 (703) 697-5737 (PUBLIC/INDUSTRY)

FOR RELEASE AT No. 032-99
8:00 AM EST (703) 695-0192 (Media)
February 1, 1999 (703) 697-5737 (Public/Industry)

DEPARTMENT OF DEFENSE BUDGET FOR FY 2000

Secretary of Defense William S. Cohen today released details of President Clinton's Fiscal Year (FY) 2000 defense budget. The budget requests $267.2 billion in budget authority and $260.8 billion in outlays for the Department of Defense (DoD).

Proposed budget authority for FY 2000-2005 reflects President Clinton's plan to make available to DoD $112 billion in additional resources, $12.6 billion of which was added in FY 2000. This would constitute the first sustained long-term increase in defense funding since the end of the Cold War.

Secretary Cohen said that the $112 billion increase would "meet the most pressing requirements identified by our senior military leadership." He added, "Although U.S. forces continue to accomplish their missions splendidly, there are warning signs of potential problems. Recruiting and retention are increasingly difficult, readiness harder to maintain, and weapons modernization tougher to fund sufficiently. This budget will address these warnings."

To improve recruiting and retention, the budget includes the largest military pay raise in a generation and restoration of the traditional military retirement benefit of 50 percent of base pay after 20 years of service.

The budget also includes $53 billion for procurement of more modern weapons in FY 2000. Procurement is projected to reach nearly $62 billion in FY 2001, surpassing the $60 billion goal previously set by the Clinton Administration. DoD leaders consider this higher modernization spending to be essential to the future readiness and battlefield superiority of U.S. forces.

Secretary Cohen stressed that the President's funding increases do not diminish the Department's resolve to shrink the portion of its budget consumed by infrastructure. To that end, he renewed his call for Congress to approve two more rounds of base closure and realignment (BRAC) for FY 2001 and 2005.

Increasing Defense Resources

Putting People First

Protecting Readiness

Achieving Modernization Goals

($ in billions)

Budget Authority FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05
QDR Goal 49 54 60 * * * *
FY 2000 budget 49.0 53.0 61.8 62.3 66.6 69.2 75.1

*QDR did not specify funding goals beyond 2001. For FY 2000, funding of critical readiness and personnel needs left DoD $1 billion short of the QDR's Procurement goal. However, in real terms Procurement at $53 billion is nearly 7 percent higher than the FY 1999 level, and it will grow another 15 percent in FY 2001. America's military preeminence depends on investments in new technologies. A high priority for achieving this is DoD's science and technology program, which funds research that should help field superior weapons and support systems at affordable prices. Also critical are advanced concept technology demonstrations (ACTDs), which link relatively mature technology with new operational concepts and enable us to expeditiously evaluate important innovations. Major Service Programs The ambitious DoD modernization program is especially critical for achieving the needed transformation of U.S. forces to reflect new technologies and other military-related trends. Transforming U.S. forces requires implementation of Joint Vision 2010, a new concept for how U.S. forces will fight and achieve what is termed "full spectrum dominance." Modernization of aviation forces includes DoD's largest acquisition program: the Joint Strike Fighter (JSF). The aim is a family of aircraft, with variants configured to meet several sets of requirements. The JSF will replace the F-16 in the Air Force, F/A-18C in the Navy, and F/A-18C/D and AV-8B for the Marines. The JSF will continue in its concept demonstration phase into FY 2001, in preparation for procurement to commence in FY 2005. The F-22 will replace the F-15C/D in the air superiority role and have substantial air-to-ground capability as well. Aircraft testing is continuing, and F-22 production is expected to build to 36 aircraft per year by FY 2004. The Navy's F/A-18E/F will provide much greater survivability and payload over earlier F/A-18 models. Initial operational capability is planned for FY 2001. For the longer term, the Navy plans to transition from F/A-18E/F to JSF procurement at a time based on the pace of JSF development.

Streamlining and Reforming DoD Infrastructure and Support

Strengthening Reserve Components

Projected Funding Allocations

(Some columns may not add correctly due to rounding)

National Defense Topline (Function 050) ($ Billions)

FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05

Budget Authority

DoD Military (051)* 262.6 267.2 286.4 288.3 298.7 307.6 318.9
DoE and Other 13.7 13.6 14.1 14.1 14.1 14.1 14.1
National Defense (050) 276.2 280.8 300.5 302.4 312.8 321.7 333.0

Outlays

DoD Military (051)* 263.6 260.8 268.6 278.3 290.2 300.0 317.6
DoE and Other 13.2 13.2 13.6 13.7 13.8 13.8 13.8
National Defense (050) 276.7 274.1 282.1 292.1 304.0 313.8 331.4

*Includes about $4.5 billion of FY 1999 supplemental appropriations, the amount that had been released when the FY 2000 budget was finalized.

DoD Budget Authority by Title ($ Billions)

FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05
Military Personnel 70.9 73.7 76.3 78.4 80.9 83.7 86.7
Operation & Maintenance 98.1 103.5 103.8 105.0 107.8 111.2 114.4
Procurement 49.0 53.0 61.8 62.3 66.6 69.2 75.1
RDT&E 36.6 34.4 34.3 34.7 34.5 35.0 34.2
Military Construction 5.1 *2.3 *7.1 4.2 4.3 4.5 4.8
Family Housing 3.6 3.1 3.8 3.6 3.7 3.9 3.9
Funds, Receipts, & Other -.7 -2.8 -.7 0 .9 .1 -.3
Total DoD (051) 262.6 267.2 286.4 288.3 298.7 307.6 318.9
% Real growth -.4 -.5 4.5 -1.8 1.0 .2 1.0

*These large funding changes in FY 2000 and 2001 reflect a one-time action to allow advance funding in Military Construction accounts.

DoD Budget Authority by Component ($ Billions)

FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05
Army 65.3 67.2 71.3 73.6 76.4 78.9 82.3
Navy/Marine Corps 81.9 83.3 91.4 89.2 93.1 96.2 100.3
Air Force 76.9 79.1 84.8 86.7 89.2 92.3 95.1
Defensewide 38.5 37.6 38.9 38.8 40.0 40.3 41.2
Total DoD (051) 262.6 267.2 286.4 288.3 298.7 307.6 318.9

Copies of Department of Defense budget documents are available at the following Internet address: http:www.dtic.mil/comptroller/FY2000budget/

http://www.defenselink.mil/news/Feb1999/b02011999_bt032-99.html