Index

Future Years Defense Program: Comparison of Planned Funding Levels for
the 2000 and 2001 Programs (Letter Report, 06/14/2000, GAO/NSIAD-00-179).

Pursuant to a congressional request, GAO compared the planned funding
levels for the common years of the Department of Defense's (DOD) fiscal
years (FY) 2000 and 2001 Future Years Defense Program (FYDP).

GAO noted that: (1) in constant dollars, there are only minor increases
in the projected year-to-year funding totals over the common 5-year
period, 2001-2005, from the 2000 FYDP to the 2001 FYDP; (2) DOD plans to
increase total funding over the 5-year period by $15.8 billion, or 1.1
percent, over the total funding projected in the 2000 FYDP; (3) although
total programmed funds for military personnel remain virtually the same
in this year's FYDP as in last year's FYDP, programmed personnel funds
for Army and Air Force active forces decline, whereas programmed funds
for other forces increase; (4) the largest funding increase in the
operation and maintenance accounts is $9.7 billion, which is programmed
for overseas contingencies; (5) while DOD's programmed procurement
spending remains above the $60 billion threshold recommended by the last
Quadrennial Defense Review in 1997, the 2001 FYDP projects a
$3.2-billion decrease, or 1 percent, from last year's FYDP projections;
(6) research, development, test, and evaluation is programmed to receive
the largest appropriation increase ($15.9 billion, or 9.6 percent) and,
within this category, the defensewide account is programmed to receive
the largest increase ($8.3 billion); and (7) the total reduction in
military construction funds would be greater than $2.2 billion were it
not for $1.9 billion of new funds in the 2001 FYDP for a base
realignment and closure round in 2003.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  NSIAD-00-179
     TITLE:  Future Years Defense Program: Comparison of Planned
	     Funding Levels for the 2000 and 2001 Programs
      DATE:  06/14/2000
   SUBJECT:  Base closures
	     Defense appropriations
	     Base realignments
	     Comparative analysis
	     Future budget projections
	     Defense procurement
	     Defense budgets
	     Planning programming budgeting
IDENTIFIER:  DOD Future Years Defense Program
	     FYDP
	     DOD Planning, Programming, and Budgeting System
	     DOD Quadrennial Defense Review
	     Overseas Contingency Operations Transfer Fund
	     Defense Health Program

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GAO/NSIAD-00-179

National Security and
International Affairs Division

B-285392

June 14, 2000

The Honorable John R. Kasich
Chairman, Committee on the Budget
House of Representatives

Dear Mr. Chairman:

The Department of Defense's (DOD) Future Years Defense Program (FYDP) is the
official document that summarizes the force levels and funding associated
with specific programs that the Secretary of Defense would like to see
approved by Congress. The FYDP presents estimated appropriation needs for
the budget year for which funds are being requested from Congress and at
least the 4 years following it. The fiscal year 2000 FYDP requested $1,434
billion total funding for fiscal years
2001-2005, whereas the fiscal year 2001 FYDP requests $1,450 billion total
funding for the same 5-year period.1 As requested, we compared the planned
funding levels for the common years of the fiscal year 2000 and fiscal year
2001 FYDP requests.

The FYDP reflects decisions made in the DOD Planning, Programming, and
Budgeting System, which is intended to produce the best possible mixture of
forces, equipment, and support to accomplish DOD's mission. The 2000 FYDP
supported the President's 2000 budget and included budget estimates for
2000-2005. The 2001 FYDP supports the President's 2001 budget and includes
budget estimates for 2001-2005.

In constant dollars, there are only minor increases in the projected
year-to-year funding totals over the common 5-year period, 2001-2005, from
the 2000 FYDP to the 2001 FYDP. DOD plans to increase total funding over the
5-year period by $15.8 billion, or 1.1 percent, over the total funding
projected in the 2000 FYDP. Table 1 compares the two plans, by primary
appropriation category.

 Appropriation                                                    Percent
 category             2001   2002   2003   2004   2005   Total    change
                                                                  2001-2005
               2000   $76.5  $76.1  $75.9  $75.9  $75.9  $380.3
 Military
 personnel     2001   75.8   76.0   75.7   76.0   76.0   379.5
                                                                  -0.2
               Change -0.7   -0.1   -0.2   0.1    0.1    -0.8
               2000   105.1  103.6  103.7  104.2  104.4  521.0
 Operation and
 maintenance   2001   109.0  105.3  104.7  105.2  105.1  529.4
                                                                  1.6
               Change 4.0    1.7    1.0    1.0    0.7    8.5
               2000   61.4   60.8   63.7   64.9   68.9   319.6

 Procurement   2001   60.3   62.0   64.4   64.0   65.8   316.4
                                                                  -1.0
               Change -1.1   1.2    0.7    -0.8   -3.1   -3.2

 Research,     2000   34.1   33.8   33.0   32.7   31.3   165.0
 development,
 test, and     2001   37.9   37.7   36.3   35.4   33.7   180.9
 evaluation                                                       9.6
               Change 3.8    3.9    3.2    2.7    2.4    15.9
               2000   7.1    4.1    4.1    4.2    4.4    23.9
 Military
 construction  2001   4.6    4.2    3.7    4.3    5.0    21.7
                                                                  -9.1
               Change -2.5   0.1    -0.5   0.2    0.5    -2.2
               2000   3.8    3.5    3.6    3.6    3.6    18.2

 Family housing2001   3.5    3.7    3.7    3.8    3.8    18.4
                                                                  1.3
               Change -0.4   0.1    0.1    0.2    0.2    0.2
               2000   0.8    1.3    2.1    1.2    0.9    6.3

 Othera        2001   1.3    0.8    0.7    0.4    0.4    3.6
                                                                  -42.5
               Change 0.5    -0.6   -1.4   -0.8   -0.5   -2.7
               2000   $288.7 $283.3 $286.1 $286.7 $289.4 $1,434.2

 Total         2001   $292.3 $289.6 $289.2 $289.1 $289.7 $1,450.0
                                                                  1.1
               Change $3.7   $6.3   $3.1   $2.4   $0.4   $15.8

aIncludes revolving and management funds and defensewide contingencies.

Note: Totals may not add due to rounding.

Source: Our analysis of FYDP data.

Although total programmed funds for military personnel remain virtually the
same in this year's FYDP as in last year's FYDP, programmed personnel funds
for Army and Air Force active forces decline, whereas programmed funds for
other forces increase. The largest funding increase in the operation and
maintenance accounts is $9.7 billion, which is programmed for overseas
contingencies. While DOD's programmed procurement spending remains above the
$60-billion threshold recommended by the last

Quadrennial Defense Review in 1997,2 the 2001 FYDP projects a $3.2-billion
decrease, or 1 percent, from last year's FYDP projections. Research,
development, test, and evaluation is programmed to receive the largest
appropriation increase ($15.9 billion, or 9.6 percent) and, within this
category, the defensewide account is programmed to receive the largest
increase ($8.3 billion). The total reduction in military construction funds
would be greater than the $2.2 billion shown in table 1 were it not for
$1.9 billion of new funds in the 2001 FYDP for a base realignment and
closure round in 2003. DOD reviewed a draft of this report and stated that
the funding data are accurate.

Decline Whereas Programmed Funds for Other Forces Increase

The military personnel appropriation includes funds for such items as active
and reserve component pay and allowances, retirement contributions, and
permanent change of station travel. As table 2 shows, total programmed funds
for military personnel remain virtually the same in this year's FYDP as in
last year's FYDP. However, programmed personnel funds for Army and Air Force
active forces decline whereas programmed funds for other forces increase.
Active Army and Air Force military personnel accounts show decreases of $2.2
billion and $0.5 billion, respectively. All other personnel accounts in the
2001 FYDP are projected to increase over the projections shown in the 2000
FYDP. Projected savings from planned reduction in reserve componentpersonnel
are shown in the Reserve component personnel, Army account.

 Appropriation                                                       Percent
 category     FYDP   2001    2002    2003   2004    2005    Total    change
                                                                     2001-2005
              2000   $22,770 $22,715 $22,730$22,765 $22,823 $113,804
 Military
 personnel,   2001   22,198  22,274  22,283 22,388  22,417  111,561
 Army                                                                -2.0
              Change -571    -441    -447   -377    -406    -2,243
              2000   17,952  17,963  17,935 17,919  17,985  89,752
 Military
 personnel,   2001   17,743  18,014  18,063 18,095  18,149  90,063
 Navy                                                                0.3
              Change -209    51      128    176     164     310
              2000   6,864   6,863   6,855  6,848   6,865   34,296
 Military
 personnel,   2001   6,822   6,865   6,879  6,882   6,881   34,331
 Marine Corps                                                        0.1
              Change -42     3       24     34      16      35
              2000   18,445  18,145  17,993 17,949  18,002  90,534
 Military
 personnel,   2001   18,283  18,176  17,759 17,885  17,928  90,031
 Air Force                                                           -0.6
              Change -163    31      -234   -65     -74     -503
              2000   2,375   2,351   2,385  2,391   2,365   11,867
 Reserve
 personnel,   2001   2,434   2,438   2,429  2,451   2,416   12,168
 Army                                                                2.5
              Change 59      87      44     61      51      301

 Reserve      2000   -30     -95     -143   -142    -141    -551
 component
 personnel,   2001   0       -124    -166   -168    -169    -627
 Armya
              Change 30      -29     -23    -26     -28     -76
              2000   1,482   1,475   1,468  1,466   1,448   7,339
 Reserve
 personnel,   2001   1,528   1,533   1,550  1,566   1,580   7,757
 Navy                                                                5.7
              Change 46      58      82     100     132     418
              2000   425     423     412    411     405     2,076
 Reserve
 personnel,   2001   436     433     425    426     429     2,149
 Marine Corps                                                        3.5
              Change 12      10      12     14      25      73
              2000   944     942     938    933     908     4,664
 Reserve
 personnel,   2001   982     998     996    991     968     4,935
 Air Force                                                           5.8
              Change 38      56      58     58      60      271

 National     2000   3,720   3,733   3,769  3,779   3,732   18,733
 Guard
 personnel,   2001   3,748   3,756   3,855  3,832   3,816   19,008
 Army                                                                1.5
              Change 27      23      87     54      84      275

 National     2000   1,558   1,559   1,562  1,574   1,531   7,785
 Guard
 personnel,   2001   1,627   1,637   1,625  1,641   1,600   8,131
 Air Force                                                           4.4
              Change 69      78      62     67      69      346
              2000   $76,505 $76,073 $75,906$75,893 $75,922 $380,298

 Total        2001   $75,802 $76,000 $75,699$75,990 $76,015 $379,505
                                                                     -0.2
              Change $-703   $-73    $-207  $97     $93     $-793

aAdjusts the Army Reserve and National Guard accounts pending completion of
Quadrennial Defense Review actions.

Note: Totals may not add due to rounding.

Source: Our analysis of FYDP data.

Largest Operation and Maintenance Increase

The operation and maintenance (O&M) appropriation includes funds for such
items as civilian personnel management and pay and benefits; transportation;
health and child care; troop training; and maintenance of tanks, airplanes,
ships, and related equipment. As table 3 shows, O&M funds programmed in the
2001 FYDP show a total increase of about
$8.5 billion, or 1.6 percent, from the funds programmed in the 2000 FYDP.
The largest increase, $9.7 billion, is planned for the Overseas Contingency
Operations Transfer Fund.3 Other large increases are planned for the Navy
($2.6 billion), the Defense Health Program ($615 million), the Air National
Guard ($534 million), and the Army National Guard ($490 million). The
biggest decreases are planned for the Army and the Air Force, $3.8 and
$2.4 billion, respectively.

 Appropriation                                                            Percent
 category     FYDP   2001     2002     2003    2004     2005     Total    change
                                                                          2001-2005
              2000   $19,487  $19,851  $19,816 $19,927  $19,873  $98,954

 O&M, Army    2001   19,124   19,197   18,984  18,942   18,882   95,129
                                                                          -3.9
              Change -363     -654     -832    -985     -991     -3,825
              2000   22,728   22,420   22,423  22,188   22,063   111,823

 O&M, Navy    2001   23,300   23,057   23,027  22,654   22,373   114,411
                                                                          2.3
              Change 572      636      604     466      310      2,588
              2000   2,735    2,685    2,647   2,641    2,651    13,360
 O&M, Marine
 Corps        2001   2,706    2,732    2,689   2,692    2,684    13,503
                                                                          1.1
              Change -29      47       42      51       33       143
              2000   22,246   22,155   22,519  23,236   23,472   113,629
 O&M, Air
 Force        2001   22,347   21,935   21,846  22,520   22,600   111,248
                                                                          -2.1
              Change 101      -220     -673    -716     -872     -2,381
              2000   11,592   11,544   11,494  11,563   11,657   57,851
 O&M,
 defensewide  2001   11,920   11,568   11,515  11,484   11,502   57,989
                                                                          0.2
              Change 328      23       21      -80      -155     138
              2000   1,504    1,555    1,560   1,545    1,544    7,708
 O&M, Army
 Reserve      2001   1,521    1,551    1,559   1,566    1,574    7,771
                                                                          0.8
              Change 18       -3       -2      21       30       64
              2000   -18      -51      -69     -69      -69      -276
 O&M, Army
 Reserve      2001   0        -27      -55     -56      -57      -196
 Component
              Change 18       24       14      13       12       80
              2000   902      931      1,013   907      930      4,683
 O&M, Navy
 Reserve      2001   961      934      922     938      959      4,714
                                                                          0.7
              Change 59       2        -91     31       29       31
              2000   132      130      129     129      130      650
 O&M, Marine
 Corps Reserve2001   134      136      135     136      138      679
                                                                          4.6
              Change 2        7        6       7        8        30
              2000   1,811    1,831    1,844   1,816    1,807    9,109
 O&M, Air
 Force Reserve2001   1,886    1,843    1,843   1,847    1,829    9,247
                                                                          1.5
              Change 75       12       -1      31       22       139
              2000   3,088    3,133    3,150   3,143    3,152    15,667
 O&M, Army
 National     2001   3,182    3,182    3,232   3,260    3,300    16,157
 Guard                                                                    3.1
              Change 94       48       82      117      148      490
              2000   3,300    3,302    3,287   3,304    3,305    16,498
 O&M, Air
 National     2001   3,446    3,398    3,369   3,419    3,400    17,032
 Guard                                                                    3.2
              Change 146      96       82      114      95       534
              2000   389      347      347     345      321      1,749
 Environmental
 restoration  2001   390      381      381     381      381      1,915
 fund, Army                                                               9.5
              Change 1        34       35      36       60       167

                                                                          Percent
 AppropriationFYDP   2001     2002     2003    2004     2005     Total    change
 category                                                                 2001-2005
              2000   300      280      254     238      232      1,304
 Environmental
 restoration  2001   294      276      252     236      231      1,289
 fund, Navy                                                               -1.2
              Change -6       -4       -2      -2       -1       -15

 Environmental2000   385      383      379     379      376      1,902
 restoration
 fund, Air    2001   376      377      375     377      377      1,883
 Force                                                                    -1.0
              Change -9       -6       -4      -1       1        -19

 Environmental2000   24       23       23      23       23       115
 restoration
 fund,        2001   23       23       23      23       23       115
 defensewide                                                              0.0
              Change 0        0        0       0        0        0
 Environmental2000   190      189      187     187      187      941
 restoration
 fund,        2001   186      186      185     186      187      932
 formerly used
 sites        Change -4       -3       -2      -1       1        -9       -0.9
 Drug
 interdiction 2000   781      769      757     755      753      3,815
 and
 counterdrug  2001   836      764      759     761      763      3,882
 activities,                                                              1.8
 Defense      Change 55       -5       1       6        10       68
              2000   11,440   11,170   10,972  10,971   10,999   55,552
 Defense
 Health       2001   11,600   11,167   11,055  11,121   11,223   56,167
 Program                                                                  1.1
              Change 160      -3       84      150      223      615
              2000   509      447      485     475      366      2,282
 Former Soviet
 Union threat 2001   458      402      421     540      449      2,270
 reduction                                                                -0.5
              Change -50      -45      -65     65       83       -12

 Overseas     2000   1,314    292      285     277      361      2,530
 contingency
 operations   2001   4,101    2,029    2,014   1,988    2,055    12,186
 transfer fund                                                            381.6
              Change 2,786    1,737    1,729   1,710    1,694    9,656
              2000   224      223      222     221      221      1,111

 Other O&M    2001   251      219      216     213      213      1,112
                                                                          0.1
              Change 27       -4       -6      -8       -8       2
              2000   $105,064 $103,611 $103,726$104,199 $104,355 $520,955

 Total        2001   $109,044 $105,330 $104,748$105,227 $105,087 $529,436
                                                                          1.6
              Change $3,981   $1,719   $1,021  $1,028   $732     $8,481

Note: Totals may not add due to rounding.

Source: Our analysis of FYDP data.

Projection

The procurement appropriation includes funds to acquire items such as
weapons and their components, communications and support equipment,
munitions, and spare parts. While DOD's programmed procurement spending
remains above the $60-billion annual threshold recommended by the last
Quadrennial Defense Review in 1997, the 2001 FYDP projects a $3.2-billion,
or 1-percent, decrease from last year's FYDP. As table 4 shows, all of the
services project decreases in their procurement spending in the 2001 FYDP
from the levels projected in the 2000 FYDP with the exception of the Air
Force, which shows a $1-billion increase over last year's level. Appendix I
shows more detailed breakouts of the appropriation categories.

 Appropriation                                                       Percent
 category     FYDP   2001    2002    2003   2004    2005    Total    change
                                                                     2001-2005
              2000   $9,468  $10,397 $11,893$11,923 $13,354 $57,037
 Army
 procurement  2001   9,421   10,995  11,957 11,839  12,234  56,446
                                                                     -1.0
              Change -47     597     64     -84     -1,120  -591
              2000   26,864  23,733  25,458 26,581  28,246  130,883
 Navy/Marine
 Corps        2001   26,631  23,753  24,992 25,847  26,444  127,668
 procurement
              Change -233    20      -466   -734    -1,801  -3,215   -2.5
              2000   21,165  22,358  22,323 21,970  22,675  110,491
 Air Force
 procurement  2001   20,939  22,593  23,384 21,855  22,760  111,532
              Change -226    235     1,060  -114    85      1,041    0.9
              2000   3,871   4,295   3,996  4,376   4,638   21,176
 Defensewide
 procurement  2001   3,279   4,620   4,046  4,462   4,351   20,757
              Change -593    325     49     86      -287    -419     -2.0
              2000   $61,369 $60,783 $63,671$64,851 $68,912 $319,586

 Total        2001   $60,270 $61,961 $64,378$64,004 $65,790 $316,403
                                                                     -1.0
              Change $-1,099 $1,178  $708   $-847   $-3,123 $-3,183

Note: Totals may not add due to rounding.

Source: Our analysis of FYDP data.

Largest Appropriation Increase

The research, development, test, and evaluation (RDT&E) appropriation
includes funds for the development and testing of weapons and equipment,
development of prototypes, support of basic research, and exploratory
development of technologies with potential military applications. As table 5
shows, RDT&E total planned funds in the 2001 FYDP are $15.9 billion, or 9.6
percent, greater than the projected funds in the 2000 FYDP. The largest
increase, $8.3 billion, is programmed for the defensewide account. In
addition, all of the military services project increases in their accounts
in excess of $2 billion.

 Appropriation                                                       Percent
 category     FYDP   2001    2002    2003   2004    2005    Total    change
                                                                     2001-2005
              2000   $4,723  $4,806  $4,482 $4,600  $4,259  $22,869

 RDT&E Army   2001   5,260   5,468   4,932  4,875   4,494   25,030

              Change 538     663     450    276     235     2,161    9.4
              2000   7,928   8,108   7,856  7,713   7,428   39,033

 RDT&E, Navy  2001   8,477   8,851   8,753  8,160   7,769   42,010
                                                                     7.6
              Change 549     743     897    447     340     2,977
              2000   12,681  12,453  12,625 12,734  12,225  62,718
 RDT&E, Air
 Force        2001   13,686  13,667  13,033 12,987  12,229  65,601
                                                                     4.6
              Change 1,005   1,214   408    253     4       2,883
              2000   8,479   8,215   7,779  7,424   7,094   38,991
 RDT&E,
 defensewide  2001   10,238  9,544   9,335  9,177   8,959   47,253
                                                                     21.2
              Change 1,759   1,330   1,556  1,753   1,865   8,262
 Director,    2000   276     267     275    274     274     1,366
 Operational
 Test and     2001   202     194     202    202     202     1,001
 Evaluation,                                                         -26.7
 Defensea     Change -74     -73     -73    -73     -72     -365
              2000   $34,087 $33,848 $33,017$32,746 $31,280 $164,977

 Total        2001   $37,862 $37,725 $36,254$35,401 $33,652 $180,895
                                                                     9.6
              Change $3,776  $3,877  $3,237 $2,656  $2,372  $15,917

aIncludes the funding for Director, Test and Evaluation, Defense in the 2000
FYDP.

Note: Totals may not add due to rounding.

Source: Our analysis of FYDP data.

Without New Funds for Base Closures

The military construction appropriation includes funds to acquire,
construct, and furnish installations and facilities and perform major
repairs of facilities. As table 6 shows, DOD's total projected military
construction funds in the 2001 FYDP are $2.2 billion lower than that
projected in the 2000 FYDP. All of the military construction accounts,
except for two base realignment and closure accounts, show a decrease in
funds. The total reduction in military construction funds would be greater
than the
$2.2 billion were it not for $1.9 billion of new funds in the 2001 FYDP for
a base realignment and closure round in 2003. The largest decreases occur in
the military construction, defensewide account ($1.6 billion); the active
Air Force account ($947 million); the base realignment and closure accounts,
environmental restoration ($944 million); and the active Navy account ($593
million). DOD is requesting congressional approval for two additional base
realignment and closure rounds in 2003 and 2005. The 2001 FYDP includes
approximately $653 million in 2004 and $1.3 billion in 2005 to begin
implementation of a 2003 base closure round.

 Appropriation                                                   Percent
 category       FYDP  2001    2002   2003   2004  2005   Total   change
                                                                 2001-2005
                2000  $1,600  $1,044 $883   $804  $785   $5,115
 Military
 construction,  2001  898     1,097  1,052  1,023 931    5,001
 Army                                                            -2.2
                Change-702    53     169    219   147    -114
                2000  1,254   856    965    929   942    4,946
 Military
 construction,  2001  753     797    920    954   929    4,353
 Navy                                                            -12.0
                Change-501    -59    -45    25    -13    -593
                2000  908     597    587    735   717    3,544
 Military
 construction,  2001  531     685    325    462   594    2,597
 Air Force                                                       -26.7
                Change-377    88     -262   -272  -123   -947
                2000  1,120   792    937    943   1,093  4,885
 Military
 construction,  2001  785     734    674    577   564    3,334
 defensewide                                                     -31.7
                Change-335    -58    -263   -366  -529   -1,551
                2000  142     69     57     68    69     405
 Military
 construction,  2001  82      60     52     58    61     313
 Army Reserve                                                    -22.8
                Change-60     -9     -5     -10   -7     -92
                2000  30      23     21     25    18     117
 Military
 construction,  2001  16      23     21     28    21     109
 Navy Reserve                                                    -6.9
                Change-14     0      0      3     2      -8

 Military       2000  89      51     47     46    66     299
 construction,
 Army National  2001  59      65     47     46    67     284
 Guard                                                           -5.0
                Change-30     14     0      0     0      -15

 Military       2000  108     49     55     55    54     321
 construction,
 Air National   2001  50      60     29     43    52     235
 Guard                                                           -26.7
                Change-58     12     -26    -12   -2     -86

 Military       2000  35      23     30     33    33     154
 construction,
 Air Force      2001  15      22     10     16    18     81
 Reserve                                                         -47.5
                Change-20     -2     -19    -17   -15    -73
 North Atlantic
 Treaty         2000  208     258    252    311   445    1,473
 Organization
 Security       2001  201     196    206    237   241    1,080
 Investment                                                      -26.7
 Program        Change-7      -62    -46    -74   -204   -393
 Base           2000  1,558   59     25     30    34     1,706
 realignment
 and closure    2001  1,178   469    333    221   207    2,407
 accounts, II,                                                   41.1
 III, and IV    Change-380    410    307    192   173    701

 Base           2000  0       0      0      0     0      0
 realignment
 and closure    2001  0       0      0      653   1,280  1,933
 accounts, 2003
                Change0       0      0      653   1,280  1,933

 Appropriation                                                   Percent
 category       FYDP  2001    2002   2003   2004  2005   Total   change
                                                                 2001-2005
 Base
 realignment    2000  0       323    286    175   159    944
 and closure
 accounts,      2001  0       0      0      0     0      0
 environmental                                                   -100.0
 restoration    Change0       -323   -286   -175  -159   -944
                2000  $7,051  $4,144 $4,145 $4,154$4,415 $23,909

 Total          2001  $4,568  $4,208 $3,668 $4,320$4,964 $21,728
                                                                 -9.1
                Change$-2,483 $65    $-476  $166  $549   $-2,180

Note: Totals may not add due to rounding.

Source: Our analysis of FYDP data.

Than Last Year's Projection

The family housing appropriation includes funds for the construction,
improvement, operations, maintenance, and leasing of military family
housing. As shown in table 7, total funds for family housing in the 2001
FYDP show only a slight increase of $242 million, or 1.3 percent, from the
2000 FYDP request. The Army's and the Navy's programs project increases of
over $500 million each, while the Air Force projects a $296-million
decrease.

 Appropriation                                                  Percent
 category      FYDP   2001   2002   2003   2004   2005   Total  change
                                                                2001-2005
               2000a  $1,058 $988   $1,031 $1,040 $1,047 $5,164
 Family
 housing, Army 2001a  1,140  1,125  1,148  1,149  1,160  5,722
                                                                10.8
               Change 82     136    116    109    114    557

 Family        2000a  1,238  1,118  1,083  1,047  1,038  5,524
 housing, Navy
 and Marine    2001a  1,245  1,183  1,209  1,217  1,255  6,110
 Corps                                                          10.6
               Change 7      65     126    170    217    586
               2000a  1,273  1,318  1,355  1,387  1,357  6,690
 Family
 housing, Air  2001a  1,050  1,299  1,337  1,368  1,339  6,394
 Force                                                          -4.4
               Change -223   -18    -18    -19    -17    -296
               2000a  43     43     43     43     43     215
 Family
 housing,      2001a  45     45     45     44     44     223
 defensewide                                                    3.7
               Change 2      2      2      1      1      8
               2000   51     0      0      0      0      51
 Homeowner's
 assistance    2001   0      0      0      0      0      0
 fund, defense                                                  -100.0
               Change -51    0      0      0      0      -51

 Appropriation                                                  Percent
 category      FYDP   2001   2002   2003   2004   2005   Total  change
                                                                2001-2005

 DOD family    2000   175    71     86     106    124    562
 housing
 improvement   2001   0      0      0      0      0      0
 fundb                                                          -100.0
               Change -175   -71    -86    -106   -124   -562
               2000   $3,838 $3,539 $3,598 $3,624 $3,608 $18,207

 Total         2001   $3,480 $3,652 $3,739 $3,779 $3,799 $18,449
                                                                1.3
               Change $-357  $113   $140   $155   $191   $242

aIncludes both family housing, construction and family housing, operations
appropriations.

bIn the 2001 FYDP, this funding is included in the services' and defensewide
family housing, construction accounts.

Note: Totals may not add due to rounding.

Source: Our analysis of FYDP data.

In oral comments on a draft of this report, the Director, Programming and
Fiscal Economics, Program Analysis and Evalution, Office of the Secretary of
Defense, said that the funding data presented in the report are accurate.

To compare the two FYDPs, we analyzed funding data from the 2000 and 2001
FYDPs for fiscal years 2001-2005. We adjusted the current dollars to
constant 2001 dollars using appropriate DOD Comptroller inflation indexes.
We did not test DOD's management controls of the FYDP data or verify the
data contained in either the 2000 or the 2001 FYDP. However, we compared
DOD's automated FYDP data with published documents DOD provided.
Specifically, we compared total budget estimates, appropriation totals,
military and civilian personnel levels, force structure levels, and some
specific program information. Based on our comparison, we were satisfied
that the automated FYDP data and published data were in agreement. We did
not analyze the reasons for the changes in planned funding because we plan
to discuss those reasons, together with the risks that may prevent the 2001
FYDP from being implemented as planned, in a report to be issued later this
year.

Our review was conducted from March through May 2000 in accordance with
generally accepted government auditing standards.

We are sending copies of this report to other appropriate congressional
committees; the Honorable William Cohen, Secretary of Defense; the Honorable
F. Whitten Peters, Secretary of the Air Force; the Honorable Louis Caldera,
Secretary of the Army; and the Honorable Richard Danzig, Secretary of the
Navy. We will also provide copies to others upon request.

If you have any questions concerning this report, please call Robert
Pelletier on (202) 512-4032. Key contributors to this report were
George O. Morse, Suzanne Wren, Mary Jo LaCasse, and Patricia Lentini.

Sincerely yours,

Norman J. Rabkin
Director, National Security
Preparedness

Procurement Accounts in the Department of Defense's 2000 and 2001 Future
Years Defense Programs

The following tables show the differences between procurement accounts in
the 2000 and 2001 Future Years Defense Programs (FYDP) over the years common
to the two programs, 2001-2005.

 Appropriation                                                     Percent
 category     FYDP   2001   2002    2003   2004    2005    Total   change
                                                                   2001-2005
              2000   $1,303 $1,877  $2,165 $2,329  $2,833  $10,507
 Aircraft
 procurement, 2001   1,323  1,845   2,138  2,270   2,745   10,321
 Army
              Change 20     -32     -27    -59     -88     -186    -1.8
              2000   1,404  1,317   1,518  1,090   1,364   6,693
 Missile
 procurement, 2001   1,296  1,345   1,403  1,205   1,230   6,479
 Army
              Change -108   28      -116   115     -134    -214    -3.2
 Procurement
 of weapons   2000   1,490  1,660   1,663  2,332   2,647   9,792
 and tracked
 combat       2001   1,875  2,540   2,175  2,535   2,561   11,686  19.3
 vehicles,
 Army         Change 385    881     511    204     -86     1,895

 Procurement  2000   1,249  1,379   1,463  1,473   1,451   7,014
 of
 ammunition,  2001   1,131  1,252   1,323  1,323   1,286   6,315
 Army
              Change -117   -127    -140   -150    -165    -699    -10.0
              2000   4,023  4,165   5,084  4,700   5,058   23,030
 Other
 procurement, 2001   3,796  4,012   4,918  4,506   4,412   21,644
 Army
              Change -227   -153    -166   -194    -647    -1,386  -6.0
              2000   $9,468 $10,397 $11,893$11,923 $13,354 $57,037

 Total        2001   $9,421 $10,995 $11,957$11,839 $12,234 $56,446 -1.0

              Change $-47   $597    $64    $-84    $-1,120 $-591

Note: Totals may not add due to rounding.

Source: Our analysis of FYDP data.

 Appropriation                                                       Percent
 category     FYDP   2001    2002    2003   2004    2005    Total    change
                                                                     2001-2005
              2000   $7,957  $8,356  $8,469 $8,355  $8,341  $41,478
 Aircraft
 procurement, 2001   7,964   8,087   8,506  8,108   8,295   40,960
 Navy
              Change 7       -270    37     -246    -46     -519     -1.3
              2000   1,549   1,636   1,869  1,963   2,072   9,088
 Weapons
 procurement, 2001   1,434   1,492   1,690  1,893   1,962   8,471
 Navy
              Change -115    -144    -179   -70     -110    -617     -6.8

 Shipbuilding 2000   12,144  7,400   8,350  9,151   10,483  47,528
 and
 conversion,  2001   12,297  8,278   8,090  9,331   9,501   47,497
 Navy
              Change 153     878     -261   181     -982    -31      -0.1

 Ammunition   2000   477     537     617    681     700     3,012
 procurement,
 Navy and     2001   430     399     500    570     531     2,430
 Marine Corps
              Change -47     -138    -117   -111    -169    -582     -19.3
              2000   3,616   4,618   4,837  4,970   4,975   23,016
 Other
 procurement, 2001   3,335   4,376   4,837  4,583   4,679   21,809
 Navy
              Change -281    -243    0      -387    -296    -1,207   -5.2
              2000   1,122   1,185   1,316  1,462   1,674   6,760
 Procurement,
 Marine Corps 2001   1,172   1,122   1,369  1,362   1,477   6,501
              Change 50      -64     52     -100    -197    -259     -3.8
              2000   $26,864 $23,733 $25,458$26,581 $28,246 $130,883

 Total        2001   $26,631 $23,753 $24,992$25,847 $26,444 $127,668 -2.5

              Change $-233   $20     $-466  $-734   $-1,801 $-3,215

Note: Totals may not add due to rounding.

Source: Our analysis of FYDP data.

 Appropriation                                                       Percent
 category     FYDP   2001    2002    2003   2004    2005    Total    change
                                                                     2001-2005
              2000   $9,857  $10,718 $10,748$10,148 $10,798 $52,269
 Aircraft
 procurement, 2001   9,540   10,358  10,935 9,878   10,474  51,184
 Air Force
              Change -317    -360    186    -270    -324    -1,085   -2.1
              2000   3,315   3,610   3,386  3,459   3,447   17,217
 Missile
 procurement, 2001   3,062   3,502   3,993  3,469   3,803   17,829
 Air Force
              Change -253    -108    607    10      356     612      3.6

 Procurement  2000   644     609     607    582     516     2,959
 of
 ammunition,  2001   639     767     603    579     555     3,143    6.2
 Air Force
              Change -5      158     -4     -4      39      184
              2000   7,349   7,420   7,582  7,780   7,913   38,045
 Other
 procurement, 2001   7,699   7,966   7,853  7,930   7,928   39,376   3.5
 Air Force
              Change 350     546     271    149     15      1,331
              2000   $21,165 $22,358 $22,323$21,970 $22,675 $110,491

 Total        2001   $20,939 $22,593 $23,384$21,855 $22,760 $111,532 0.9

              Change $-226   $235    $1,060 $-114   $85     $1,041

Note: Totals may not add due to rounding.

Source: Our analysis of FYDP data.

 Appropriation                                                  Percent
 category       FYDP   2001  2002   2003   2004   2005  Total   change
                                                                2001-2005
                2000   $2,892$3,210 $3,184 $3,480 $3,713$16,479
 Procurement,
 defensewide    2001   2,275 3,504  3,225  3,524  3,431 15,960
                Change -617  295    41     44     -282  -518    -3.1
 Chemical       2000   979   1,085  812    897    924   4,698
 agents and
 munitions      2001   1,004 1,116  820    938    919   4,797
 destruction,
 defense        Change 24    31     8      42     -5    99      2.1
                2000   $3,871$4,295 $3,996 $4,376 $4,638$21,176

 Total          2001   $3,279$4,620 $4,046 $4,462 $4,351$20,757 -2.0

                Change $-593 $325   $49    $86    $-287 $-419

Note: Totals may not add due to rounding.

Source: Our analysis of FYDP data.

(702075)
  

1. Unless otherwise stated, the years and dollars shown in this report are
on a fiscal year basis and in constant fiscal year 2001 dollars.

2. The Review, an examination of America's defense needs from 1997 to 2015,
attempted to achieve a better balance in DOD's financial plans to meet its
military forces' current requirements and address long-term modernization
needs.

3. In the DOD Appropriations Act of 1997 (P.L. 104-208), Congress
established the Overseas Contingency Operations Transfer Fund to pay for
ongoing contingency operations. Congress appropriates money to the Fund. As
an operation unfolds during the year, DOD can transfer money directly from
the Fund to the military services' O&M accounts.
*** End of document. ***