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FY 2004 Department of Defense Budget Released

Special release from the Department of Defense

Story Number: NNS030204-05
Release Date: 2/4/2003 12:29:00 PM

WASHINGTON (NNS) -- President George W. Bush recently 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 fully reflect 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 6 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 budget reflects Defense Secretary Donald 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.

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.

The FY 2004 budget continues the President's commitment to take good care of military personnel, which is critical to U.S. security - both near-term and long-term. The budget will:

- Fund a range of military pay increases from 2 percent up to 6.25 percent, targeted by rank and years of service.
- Reduce out-of-pocket housing costs from 7.5 percent to 3.5 percent for personnel living in private housing. These costs are scheduled to drop to zero in FY 2005.
- Keep the department on track to eliminate inadequate family housing by 2007 - except for four stateside Air Force installations (complete in 2008) and overseas Air Force installations (complete in 2009).
- Provide $15.3 billion for the Defense Health Program, $0.5 billion above FY 2003.

The budget reflects ongoing major changes to the department's combatant commands - aimed at strengthening warfighting preparation and execution. Improvements include:

- Establishing the Northern Command to consolidate homeland defense missions
- Creating a strategic plan for transforming DoD training to meet combatant commander requirements, linking readiness reporting to create a joint national training capability
- Enhancing roles for the Joint Forces Command to improve joint operations and training
- The Merger of Space Command and U.S. Strategic Command

In DoD budgets, military transformation is reflected primarily in investment programs. Through such funding, new military systems are being developed and fielded, achieving 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 encourage competition for fulfilling future missions.

New 21st century threats and realities demand new ways of thinking and operating for the Department of Defense. The department made significant progress doing this the past two years, but problems persist.

Some actions can and will be taken by the Department itself - such as further changes to internal processes and management. But other needed actions require congressional approval.

To that end, the Bush administration is considering DoD proposals to achieve greater flexibility in adapting civilian and military personnel management systems to mission needs, in managing its budget, overhauling acquisition processes and other initiatives.