03 February 2003
New Defense Budget Reflects Anti-Terror, Missile Defense Focus
(Services shift $80,000 million to implement transformation strategy) (2200) The Defense Department February 3 unveiled a Fiscal Year 2004 budget totaling $379,898 million that will focus on priorities such as winning the global war on terrorism, fielding initial elements of a missile defense system, and building more ships. "Meeting today's threats while preparing for tomorrow's challenges" is the central theme of the new budget, which is $15,300 million larger than last year's request. It is the first budget drawn up by the military services since the Bush administration announced its new National Security Strategy last year. In keeping with that strategy, the Department said, the new defense budget focuses on anticipated threats such as terrorism "rather than on specific regional dangers or requirements." Anticipating the ongoing nature of countering terrorism, the Pentagon is seeking chemical and biological detection equipment, protective gear, and harbor patrol boats. Last year Congress did not appropriate the full amount requested for anti-terror spending, nor did it appropriate a follow-up request the administration sought for contingency spending on terrorism. The Missile Defense Agency is seeking $7,700 million for researching, developing and testing missile defenses. The new budget would fund 10 ground-based interceptors providing what is described as an "initial modest capability against North Korean missiles." Some $739 million would be used in the coming fiscal year -- which begins October 1 -- to buy 108 PAC-3 (Patriot Advanced Capability-3) missiles to defend against cruise and tactical ballistic missile attacks. Besides preparations to defend against a possible terrorist or rogue state attack, the military services have undertaken a major effort to transform how they will fight in the 21st Century. Military procurement will be driven by that transformation strategy and as much as $80,000 million is being dedicated to support it. The Navy is buying one new submarine in FY 04 and is seeking $1,200 million to convert four Trident ballistic missile subs, equipping them to carry 150 Tomahawk cruise missiles as well as Special Operations Forces. Special Operations Forces are seeking a large increase in funding in this budget, from $1,500 million to $4,500 million under the expanded Special Operations Command. The Army wants to buy 301 Stryker wheeled armored combat vehicles and spend $1,100 million to develop the Comanche helicopter as a low-observable platform for reconnaissance and light attack missions. Following are excerpts of the Defense Department budget release: (NOTE: In the text, billion equals 1,000 million.) (begin excerpt) EMBARGOED UNTIL 9 A.M. EST, FEB. 3, 2003 January 31, 2003 FISCAL 2004 DEPARTMENT OF DEFENSE BUDGET RELEASE President George W. Bush today released details of his fiscal year (FY) 2004 Department of Defense (DOD) budget. The budget requests $379.9 billion in discretionary budget authority -- $15.3 billion above FY 2003. The FY 2004 DOD budget is the first to reflect fully the Bush Administration's new defense strategy, which calls for a focus on the capabilities needed to counter 21st century threats such as terrorism -- rather than on specific regional dangers or requirements. The central theme of the new budget is "Meeting today's threats while preparing for tomorrow's challenges." The budget establishes a balance between near-term and longer-term demands -- in FY 2004 as well as over the six years covered by the FY 2004-2009 Future Years Defense Program (FYDP). The budget funds strong support for: -- Winning the global war on terrorism -- Sustaining high quality people and forces -- Transforming the U.S. military and defense establishment The DOD prepared its FY 2004 budget using a new combined program/budget review process -- with greater transparency and substantial interaction between the military services and the Office of the Secretary of Defense. The Department increased support for programs to transform the capabilities available to U.S. forces -- while sustaining robust funding for near-term force readiness and the capabilities needed now in the war on terrorism. The budget reflects Secretary Rumsfeld's insistence on realistic funding for all DOD programs. By making tough, strategy-driven decisions, the Department has established a program that can be executed with the funding projected in the President's budget. Global War on Terrorism In his FY 2003 budget, President Bush requested $10.1 billion for the Department's baseline funding including $8.2 billion for acquisition and other requirements resulting from the Department's experience in the global war on terrorism, $1.2 billion for increased air patrols in the continental United States, and $0.7 billion for implementation of the Nuclear Posture Review. Congress appropriated only $7 billion of the $10.1 billion requested. Congress did not appropriate the additional $10 billion the President requested as a contingency for FY 2003 incremental operations costs related to the global war on terrorism. In the FY 2004 budget, the Department continues to acquire capabilities critical to the war on terrorism. FY 2004 initiatives for force protection and combating terrorism include intrusion detection systems, blast mitigation measures, chemical and biological detection equipment, personal protection gear, waterside security enhancements, harbor patrol boats, regional command systems, mass notification systems, and initiatives to restrict access to DOD installations. Force Readiness The new budget sustains the robust Operation and Maintenance (O&M) funding of last year -- so that U.S. forces are fully prepared for intensely waging the war on terrorism and meeting other commitments. FY 2004 O&M discretionary budget authority is $117 billion, in real terms about 1 percent above FY 2003. Readiness indicators are sustained at traditionally high levels. The FY 2004 readiness goals are about the same as last year, and all are met: -- Army tank miles: 913 -- Army flying hours: 13.1 hours/crew/month -- Navy flying hours: 20.8 hours/crew/month -- Navy ship operations for deployed forces: 54 underway days/quarter -- Air Force flying hours: 16.8 hours/crew/month Reserve Components. The budget includes about $30 billion for Reserve components in the Military Personnel, O&M, Procurement, and Military Construction accounts. This funding reflects the Department's substantial reliance on Reserve components for the global war on terrorism and other commitments. The Department also is pursuing initiatives to mitigate the concerns of reservists' civilian employers and for increased support of Reserve component families. Transformation Transformation is the process whereby DOD is overhauling the U.S. military and defense establishment to enable it to counter 21st century threats most effectively. Transformation is about new ways of thinking, fighting, and organizing the Department and its operations -- as well as about acquiring new system capabilities. To increase military effectiveness, the Department is strengthening joint warfighting by advancing new operational concepts, command and organizational changes, and expanded joint experimentation and training. The FY 2004 budget reflects ongoing major changes to the Department's Combatant Commands -- aimed at strengthening warfighting preparation and execution. Improvements include: -- Establishing of Northern Command to consolidate homeland defense missions -- Creating a strategic plan for transforming DOD training to meet combatant commander requirements to link readiness reporting to create a joint national training capability -- Enhancing roles for the Joint Forces Command to improve joint operations and training -- Merger of Space Command and U.S. Strategic Command -- Expanding the planning and warfighting role of the Special Operations Command (SOCOM), increasing funding for Special Operations Forces (SOF) by $1.5 billion to $4.5 billion in FY 2004 (not including military personnel costs), and transferring 1,890 manpower billets to SOCOM Transforming Military Capabilities In DOD budgets, military transformation is reflected primarily in investment programs -- i.e., in programs funded in the appropriations titles of Research, Development, Test, and Evaluation (RDT&E) and Procurement. Through such funding, new military systems are being developed and fielded -- to achieve a new portfolio of military capabilities to decisively combat the full spectrum of threats to U.S. security. A key objective for this new portfolio of capabilities is to provide alternative means for meeting near-term needs and to encourage competition for fulfilling future missions. Highlights of FY 2004 investment funding for key programs supportive of transformation: Missile Defense. $7.7 billion for the Missile Defense Agency to continue research, development and testing of an evolutionary missile defense program focusing on fielding an initial capability in 2004 and 2005, and expanding that capability over time through additional measures and technology infusion. The plan is -- over the next 2 years -- to deploy a limited defense against ballistic missiles: -- In FY 2004: Includes 10 ground-based interceptors. This would provide initial modest capability against North Korean missiles. -- In FY 2005: Includes 10 additional ground-based interceptors; up to 20 sea-based interceptors; land, sea and space sensors; and command and control upgrades. This would add modest capability against Middle East threats. The FY 2004 budget also includes $739 million for Patriot Advanced Capability-3 program, including procurement of 108 PAC-3 systems to protect against cruise missile and tactical ballistic missile attack. CVN-21. $1.5 billion for the planned 2007 aircraft carrier, which has been upgraded to the CVN-21 design -- whose innovations include an enhanced flight deck, a new nuclear power plant, allowance for future technologies, and reduced manning. Some of these capabilities previously were not going into a new carrier until 2011. This is an example that fulfills President Bush's goal of skipping a generation of systems or technologies. New ship classes/technologies. $1.2 billion to continue development of technologies to be applied to the whole family of 21st century surface combatants including DDX destroyer, littoral combat ship, and CG(X) cruiser. SSGN (Guided Missile Submarine) Conversion. $1.2 billion to continue to convert four Trident ballistic missile submarines to submarines each capable of carrying more than 150 Tomahawk cruise missiles and a contingent of special operations forces. Transformational Satellite Communications. $453 million to further develop a new system based on laser communications and greatly enhanced radio-frequency capability, which would free users from current bandwidth constraints and provide greatly enhanced interoperability and connectivity to support net-centric operations. Advanced Extremely High Frequency (EHF) Capability. $778 million to continue development of a new satellite constellation to provide much greater protected communications capabilities than the current MilStar satellite communications system. Space Based Radar (SBR). $299 million to continue development of a new space-based capability to detect and track global targets. Cryptologic Modernization. $416 million to improve protection of DoD networks. Army Transformation -- $1.7 billion to continue development of Future Combat Systems (FSC) -- a family of fighting vehicles that constitute the centerpiece of Army transformation. The budget maintains the accelerated Initial Operational Capability (IOC) date of 2010. The FCS program includes $456 million to continue development of new indirect fire systems to replace the Crusader artillery system cancelled last year. -- $955 million to procure 301 Stryker armored wheeled combat vehicles and $46 million to continue development. The FY 2004-2009 budget supports the conversion of six Army brigades to Stryker Brigade Combat Teams, although the fifth and sixth brigades will continue to be reviewed -- $1.1 billion to continue development of Comanche -- a low-observable, next-generation helicopter for reconnaissance and light-attack missions. Unmanned Aerial Vehicles (UAV) -- Global Hawk unmanned aerial vehicle (UAV): $610 million including $250 million to procure upgraded capabilities and four more high-endurance, long-range UAVs -- which provide persistent intelligence on opposition forces. -- Predator UAV: $250 million: $40 million for continued development and $210 million to procure upgraded capabilities, spares, ground stations, and 14 more vehicles, 4 of which are the B model. -- Unmanned combat aerial vehicles (UCAVs): $275 million to continue development of this important new asset for attack and other military missions. -- Unmanned undersea vehicles (UUVs): $81 million to continue development of the Long-term Mine Reconnaissance System and more advanced multi-mission UUVs. Other Investment Programs Highlighted below are other investment programs essential to achieving the transformation and modernization of U.S. forces. Funding shown is for FY 2004 Procurement and RDT&E. Shipbuilding. 512.2 billion for procurement of seven ships -- up sharply from $9.5 billion and five ships in FY 2003. F/A-22. $5.2 billion to support procurement of 22 F-22s in FY 2004, to continue the development of the aircraft, and to improve its ground attack systems. This aircraft has been redesignated the F/A-22 to recognize its future ground attack capability. F/A-18E/F. $3.5 billion to support procurement of 42 aircraft. Joint Strike Fighter (JSF). $4.4 billion to continue system development and demonstration. C-17. $3.7 billion to support procurement of 11 aircraft. V-22. $1.8 billion to support the development program and procurement of nine MV-22 (Marine Corps variant) and two CV-22 (Air Force variant). Chemical-Biological Defense Program. $1.1 billion for the total program, with a $200 million increase to extend near-maximum chemical-biological protection to 200 installations, increase Army biological detection capabilities, and combat new chemical agent threats. Restructured Programs To implement Secretary Rumsfeld's guidance stemming from the 2001 Quadrennial Defense Review, the Military Services have shifted billions of dollars from their older multi-year budget plans to new ones -- as they have terminated and restructured programs and systems. For FY 2004-2009, the Military Services estimate that they have shifted over $80 billion to help them transform their warfighting capabilities and support activities. (end excerpt) (Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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