[Index]

NEWS RELEASE

NO. 026-98
(703) 695-0192 (MEDIA)
IMMEDIATE RELEASE FEBRUARY 2, 1998 (703) 697-5737 (PUBLIC/INDUSTRY)

FOR RELEASE AT No. 026-98
8:00 AM EST (703) 695-0192 (Media)
February 2, 1998 (703) 697-5737 (Public/Industry)

DEPARTMENT OF DEFENSE BUDGET FOR FY 1999

Secretary of Defense William S. Cohen today released details of President Clinton's Fiscal Year (FY) 1999 defense budget. It requests $257.3 billion in budget authority and $252.6 billion in outlays for the Department of Defense (DoD). The President's proposed defense spending levels for FY 1999-2003 are generally consistent with last year's Bipartisan Budget Agreement.

Release of this budget is the culmination of intense scrutiny of the U.S. defense posture carried out during Secretary Cohen's first year in office. The new budget begins full implementation of the Department's comprehensive Quadrennial Defense Review (QDR). The QDR examined the security threats and opportunities facing the U.S. and developed far-reaching recommendations for the post-Cold War era.

The budget includes $48.7 billion for procurement of more modern weapons. Procurement is projected to reach $61.3 billion in FY 2001, achieving 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.

While highlighting the importance of weapons modernization, Secretary Cohen also is stressing that the long-term readiness of U.S. forces is threatened by the budgetary drain of excess infrastructure. The Department of Defense is burdened with facilities and bases that it neither needs nor can afford. To remedy this, Secretary Cohen today again urged Congress to approve two more base closure and realignment (BRAC) rounds.

For near-term force readiness, Congress's support also is needed for DoD's plans to streamline its business practices and organizational structure. Additionally, Secretary Cohen warns that readiness could suffer late in FY 1998 if Congress does not give timely approval to supplemental appropriations to cover unbudgeted operational costs. Such costs are related to the President's stated intention to extend Bosnia operations beyond June and to this year's increased intensity of operations in Southwest Asia.

With its strong support for both immediate force readiness and cutting-edge technology, the new budget strikes a balance between current and future defense needs, as advocated in the QDR. It continues Secretary Cohen's commitment to enhancing the quality of life of the nation's military people and their families. And the budget reflects changes already underway as a result of last November's Defense Reform Initiative, through which Secretary Cohen and Deputy Secretary Hamre seek to substantially streamline and improve DoD support activities.

Transforming the U.S. Defense Posture

The FY 1999 budget begins implementation of the QDR's plan for transforming U.S. defense strategy and military forces.

Shorthand for the new defense strategy is: Shape, Respond, Prepare. It calls for the U.S. to work to shape the international security environment in ways favorable to American interests, be willing and able to respond to the full spectrum of crises as needed, and prepare now for an uncertain future. The FY 1999 budget supports this strategy primarily by ensuring continued American military superiority, high readiness, and extensive overseas deployment of U.S. forces. It also advances the transformation of U.S. forces and the organizations and activities supporting them so that together they can best guarantee America's long-term security.

The QDR recommended end strengths and force levels that are only slightly below those already planned as a result of the Department's earlier post-Cold War adjustments. It called for additional cuts of about 60,000 active military personnel; 55,000 in Selected Reserves; and 80,000 DoD civilians. End strength trends and goals are shown below:

Department of Defense Personnel End Strengths (End of Fiscal Year in thousands)

Cold War Current Budget QDR
FY 1987 FY 1998 FY 1999 Goals
Active Military 2,174 1,419 1,396 1,360
Selected Reserves 1,151 886 877 835
DoD Civilians 1,127 770 747 640

Bosnia Funding

In sum, the Administration has structured its Bosnia-related funding requests so that resources are not diverted from DoD's current and future appropriations, which should avoid damage to military readiness.

Modernization of U.S. Forces

Department of Defense Procurement ($ in billions)

Budget Authority FY 99 FY 00 FY 01 FY 02 FY 03
QDR Goal 49 54 60 61 62
FY 1999 budget 48.7 54.1 61.3 60.7 63.5

FY 1999-2003 Major Defense Modernization Programs (Procurement $ in billions)

Army FY 99-03
Ammunition 6.6
Trucks/Support Vehicles 5.5
M1A2 Tank Upgrade 3.2
Longbow Apache Helicopter 2.8

Navy

F/A-18E/F Aircraft 15.0
DDG-51 Destroyer 14.1
New Attack Submarine 7.5
LPD-17 Amphibious Transport Dock Ship 6.5
V-22 Tiltrotor Aircraft 5.8

Air Force

C-17 Airlifter 13.4
F-22 Fighter 11.7
CV-22 Tiltrotor Aircraft 1.7

Countering NBC Weapons and Missile Threats

Total Force Integration

Reforming DoD Support Activities

Defense Budget Topline

Copies of Department of Defense budget documents are available at the following Internet address: http://www.dtic.mil/comptroller/99budget/.

National Defense Topline (Function 050) ($ Billions)

FY 98 FY 99 FY 00 FY 01 FY 02 FY 03

Budget Authority

DoD Military (051) 254.9 257.3 262.9 271.1 274.3 284.0
DoE and Other 12.7 13.3 13.0 12.7 12.8 13.1
Total (050) 267.6 270.6 275.9 283.8 287.1 297.1
% Real Growth (051) - -1.1 0 +.9 -1.1 +1.1

Outlays

DoD Military (051) 251.4 252.6 255.8 257.1 259.7 275.8
DoE and Other 12.7 12.9 12.9 12.7 12.4 12.7
Total (050) 264.1 265.5 268.7 269.8 272.1 288.5

DoD Budget Authority by Title ($ Billions)

FY 98 FY 99 FY 00 FY 01 FY 02 FY 03
Military Personnel 69.7 70.8 70.7 71.6 73.0 74.9
Operation & Maintenance 94.4 94.8 95.9 97.8 99.6 101.9
Procurement 44.8 48.7 54.1 61.3 60.7 63.5
RDT&E 36.6 36.1 33.9 33.0 33.5 34.3
Military Construction 5.1 4.3 4.9 4.4 3.7 4.0
Family Housing 3.8 3.5 3.9 3.9 3.9 4.2
Funds & Other .5 -.8 -.5 -.9 -.1 1.2
Total DoD (Function 051) 254.9 257.3 262.9 271.1 274.3 284.0

DoD Budget Authority by Component ($ Billions)

FY 98 FY 99 FY 00 FY 01 FY 02 FY 03
Army 60.5 63.8 65.2 66.7 69.2 71.0
Navy/Marine Corps 80.9 81.3 82.3 86.8 84.8 87.8
Air Force 74.4 76.7 78.4 81.2 83.3 85.3
Defensewide 39.0 35.4 37.0 36.4 37.0 39.9
Total DoD (051) 254.9 257.3 262.9 271.1 274.3 284.0