03 February 2003
Pentagon Seeks $380 Billion To Fund Transformation For 21st Century
(Zakheim says funding for Afghan, Iraqi operations not included) (1540) By Jacquelyn S. Porth Washington File Security Affairs Correspondent Washington - The Defense Department unveiled what is described as a $379.9 billion "peace time" budget because it will be used exclusively to sustain existing military operations and does not include operations in Afghanistan or any potential operations in Iraq, Under Secretary of Defense and Pentagon Comptroller Dov Zakheim says. The fiscal year 2004 (FY 04) defense budget - which begins October 1 -- focuses on transforming how the military prepares for future conflicts through training, education, doctrine, strategy, and equipment, while also seeking to defend U.S. interests from threats posed by terrorism, Zakheim said at a February 3 briefing. Defense Department officials are currently conducting discussions with officials at the Office of Management and Budget about how much money will be needed to cover operations in Afghanistan in a future supplemental budget request. Afghan operations are now being funded by drawing money from current accounts that are designed to fund operations and maintenance (O&M), which is putting the Pentagon in "a very difficult bind," Zakheim said. If President Bush decides to commit U.S. forces in Iraq, that would require additional funds which could require a second supplemental request, or it could be wrapped into the first bill, depending upon timing, he said. The 1991 Persian Gulf war cost about $61 billion, of which Saudi Arabia, Japan and Kuwait paid about $50 billion and the United States picking up the remaining $11 billion. Zakheim and others say they are unable to predict the cost of any possible future conflict with Iraq because it is now impossible to anticipate the level of resistance, the intensity of fighting, and the duration of such as war. They also cannot say with any certainty what reconstruction in a post-war environment will cost. The defense budget will continue to grow in the next five fiscal years (FY 05 - $399.8 billion; FY 06 - $419.8 billion; FY 07 - $440.5 billion; FY 08 - $461.8 billion; and FY 09 - $483.6 billion) using an inflation rate of 1.5 percent. These numbers do not reflect defense programs paid for through the Department of Energy. Zakheim, who substituted at the briefing for Defense Secretary Donald Rumsfeld, discussed the transformation goals that are driving this budget. For example, he said the FY 04 budget includes $7.9 billion to protect bases of operations (an amount projected to reach $55 billion over the next five years), which includes funding for missile defense. Another $8 billion has been slated to project and sustain the military forces ($96 billion over five years). He said $5.2 billion is being sought to deny sanctuary to adversaries ($49 billion over future years) through efforts such as modifying Trident submarines to carry Tomahawk cruise missiles and funding for Unmanned Aerial Vehicles (UAVs) such as the Global Hawk. Two other major programs: conducting effective information operations ($6 billion from FY 04-09) and enhancing space operations ($5 billion over five years) will receive fairly small amounts of money this year, he said, but "ramp up" by the end of the decade. Zakheim said the "centerpiece of transformation" can be found in the funds for increasing capabilities in the area of C4ISR (Command, Control, Communications, Computer, Intelligence, Surveillance and Reconnaissance) programs such as acquiring greater bandwidth for communications. Transformation also has more mundane meaning for the Defense Department such as farming out personnel security investigations to the Office of Personnel Management, putting more work out for competitive bidding, which the Comptroller says usually saves 20 percent, halting the Pentagon's long standing practice of printing all of its own publications, and reorganizing the structure to create new positions such as under secretaries of defense for homeland security and intelligence. Procurement levels are projected on an upward trend with $72.7 billion sought in FY 04, $77.2 billion the next year, $84.3 billion in 06, $94.7 in 07, $104 billion in 08 and $112.2 billion in 09. Besides spending on missile defense, the Army is buying new lighter armored vehicles (Stryker brigades), the Navy is retiring some of its oldest ships while buying new ones, and the Air Force is putting much of its money in new fighter and unmanned vehicle programs. Zakheim said the FY 04 budget is predicated upon accepting "near term risk in order to transform for the long term." This means, he said, that it is prudent to accept certain risks now in order to procure the military equipment that will be used in the field in 2030, 2040 and 2050. This budget also includes $200 million to train and equip forces of friendly nations who are cooperating with the U.S. in the global war on terrorism. While Zakheim was not able to pinpoint the nations who will receive some of this money, he did say he anticipated "more of this" kind of request over time. Some of the other priorities include funding for Special Operations Forces with an added $1.5 billion in this new budget incorporating nearly 1,900 new positions; $1.3 billion for future combat systems; $1 billion for the international Joint Strike Fighter (JSF); and $1.7 billion for precision munitions. Missile Defense: The new budget includes $1.5 billion in new monies for a variety of purposes including 10 land-based interceptors which the Defense Department described as providing an "initial modest capability against North Korean missiles." Asked why North Korea was mentioned, a senior defense official said this would provide merely a capability and does not imply that it would be employed. Zakheim said missile defense emphasis is shifting from research to development. Now that the 1972 Anti-Ballistic Missile Treaty no longer exists, he said the program has been able to stop speculating about sea-based missile defense capabilities. Missile defense investment continues to be made in Israel's Arrow anti-missile program, the Russian American Observation Satellites (RAMOS) program, and in support of Japan's research efforts. Army: The Army is seeking $93.7 billion in the new fiscal year and wants to spend around $2 billion to combat terrorism through programs such as intrusion detection systems and money for fixed and portable barriers. The new Stryker wheeled armored combat vehicles (310 in 04 and 340 in 05) are also the wave of the Army's future. Preparation for future land conflicts means buying better sensors, more precision munitions and better helicopters. The Army is pumping more than $1 billion in FY 04 into its next generation helicopter - the Comanche - especially designed for armed reconnaissance and attack missions. It is also continuing to upgrade its Black Hawk helicopters (10 for $167 million in 04). It is speeding up production of the PAC-3 (Advanced) Patriot missile for possible use against tactical ballistic missiles in regional scenarios (108 in 04 and 131 in 05). The Army also continues to fund its Chemical Demilitarization Program ($1.6 billion in 04) as part of the U.S. obligation under the Chemical Weapons Convention. So far, more than 25 percent of the original stockpile has been destroyed. Air Force: The Air Force is seeking $113.7 billion in FY 04 budget authority. A senior military budget official told reporters January 31 that Air Force deployments have increased by 250 percent since September 11, 2001. He also noted that the number of aircraft focused on homeland security has increased from 14 to 45 since 9/11. The Air Force is investing heavily in programs such as its F/A-22 Raptor fighter program ($5.2 billion in FY 04), the JSF ($1.9 billion in 04), and the C-17 heavy-lift transport aircraft ($3.7 billion). It continues to invest in older, existing programs such as the F-16 fighter, the B-2 bomber, and the AWACS (Airborne Warning and Control System) aircraft. Zakheim described the Air Force's investment in unmanned vehicles such as the Global Hawk and Predator as "a cultural shift." He described the UAV as having "done wonders for us in Afghanistan and around the world." Navy: The Navy is seeking $114.6 billion in budget authority. Looking at the big picture, there are now 301 battle force ships in the Navy. With a number of destroyers slated for retirement that number will drop to 291 in 06 and then rebound in 09 to 305. Zakheim said "we are serious about turning the corner on shipbuilding." The budget figures show seven new ships in FY 04 (one Virginia-class sub, three DDG-51 destroyers, one LPD-17 assault craft and two cargo ships), eight next year, seven in 06, nine in 08 and 14 in 09. The emphasis in the later years will be on the littoral combat ship that can operate effectively in narrow, close-in bodies of water, against diesel subs and in mine warfare situations. Meanwhile, the Navy is seeking 100 aircraft in 04 including 42 F/A-18s E/F/Gs, nine V-22 tilt-rotor aircraft for the Marines, and 15 T-45TS trainer aircraft. The Navy also wants to buy over 12,000 precision-guided munitions. (NOTE: In the text, "billion" equals 1,000 million.) (The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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