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U.S. Department of Defense
Office of the Assistant Secretary of Defense (Public Affairs)
News Transcript

Presenter: Military Deputy for Army Budget Lt. Gen. Edgar Stanton and Acting Director of Army Budget Kathleen Miller February 01, 2010

DOD News Briefing with Lt. Gen. Stanton and Kathleen Miller on Fiscal Year 2011 Budget for the Army

MR. FOSTER: Ladies and gentlemen, I'm Dave Foster, I'm with Army Public Affairs. At the conclusion of this, if you have some additional questions you can reach me at dave.foster1@us.army.mil.

Our next two speakers are from the Army, Assistant Secretary of the Army, Financial Management and Comptroller Office. We have Lieutenant General Edgar Stanton. He is the military deputy for budget. And also Ms. Kathleen Miller, she is the acting director for Army Budget. And what they'll do is talk you through some slides. I'd ask hold your questions until the end and we will have a few minutes for questions. Thank you very much.

General Stanton …

GEN. STANTON: Thank you very much. And to all, welcome to the Army's presentation of our FY '11 budget. We had in the back of the room and hopefully you have before you and if not we'll be delighted to provide to you a copy of our budget highlights, a green tab media release, a copy of the charts and then included in that packet was one chart that addresses the Army's supplemental request for the FY '10 OCO.

So what I'll just address that chart quickly and then we'll go through the base appropriation and then the '11 OCO. But for the '10 supplemental, the Army's request is $20 billion (dollars). I think Undersecretary Hale mentioned to you that the OSD request is $33 billion (dollars). And essentially what this does is it funds two brigade combat teams and a training brigade as well as the Marine Corps regimental combat team and the 30K surge in terms of the support the Army provides.

The request is predominantly operational maintenance, almost $12 billion (dollars), just under $2 (billion dollars) for the military personnel costs. And this of course funds the deployed entitlements that our soldiers are due when in harm's way, as well as the cost of the mobilized reservists who are serving in the theater. Most of the cost goes to operational maintenance as we said and then a little bit for procurement, procurement in OCO request now is limited to battle losses, washouts, some recapitalization and equipment used in the fight -- in the theater. And then force protection. So when we get to the question and answer session if you have questions on this, we'll be glad to address them.

So I'd like to begin then with the first chart entitled "The Army FY 2011 Budget Priorities". And this is unchanged from last year. The Army leadership focus is caring for our people -- that's our soldiers, our families and our civilians -- all with the intent of sustaining the volunteer force. We focus on training and equipping soldiers and units for the current fight and then we revitalize our people both the entire gamut of our people, our soldiers and our civilians for whatever the next contingency might be. Included in this of course is training and development and professional development of our soldiers and our leaders.

And then lastly we transform and modernize for those contingencies that we don't yet know about as we look to the future.

Turning to the next chart which is the FY 2011 Obligation Authority is the title, and you see before you two pie charts there. The first addresses the president's base request and the second is the OCO request, of course being submitted together. You see that for the base, we are requesting $143.4 billion (dollars), and this is up a bit from onlines enacted number which was just under $141 (billion dollars), at $140.9 (billion dollars). So a modest increase in the base request.

And in fact, to characterize those for you in terms of the functional piece parts of the budget, our military personnel request is $1 billion (dollars) more than was enacted in '10, the operational and maintenance is about $3.7 billion (dollars) more, and we will talk to the piece parts of the growth. Procurement up $2 billion (dollars), RDT&E down $1 billion (dollars), and BRAC down $4 billion (dollars). So the net of that for all Army appropriations included in the base as compared to the '10 enacted is an increase of $2.5 billion (dollars) or 1.8 percent which is essentially inflation.

So that's kind of the big picture of the budget. As you see on the pie chart, in the base, we're very heavy in terms of military personnel, which is no surprise since we are all land based, we're fighting force. Our operational maintenance accounts of course funds all that we do to operate the Army to include our civilian workforce as well as our contract and labor force. And you see RDT&E in procurement make up about 22 percent of the budget, much smaller in the Army budget than you would see for example in the Navy or the Air Force with regard to the investment accounts. We again, being heavier in the military personnel account.

The pie chart below reflects the OCO request and you can see that it is by far operational and maintenance heavy and this is everything from pre-deployment, training, transportation to the theater, transportation within the theater, all of those costs associated with the operational tempo and the logistics support for the force.

And then you see the what we call pass-throughs included in the OCO request for the Iraqi security forces for the Afghan security forces and for the joint improvised explosive device defeat fund, JIEDDF. So -- and of course that makes up a fairly high percentage of the total OCO request. We will address the details of that towards the end of the brief.

Turning to the next chart, Army Based Budget Request, and this essentially reflects the Army's appropriations and it serves as a good outline for the ensuing charts that Ms. Miller who is the Director of the Army Budget is now going to address for you. So this is the Army Base Budget Request and then we will introduce and discuss the OCO request for '11.

MS. MILLER: Thank you sir. If we can go on to the next chart, let me give you a short orientation because most of the charts in this presentation will follow the format that you see in this chart.

Staring over on the right hand side, there'll be a big yellow box that shows the appropriation totals across all three compos for whatever appropriation category we're discussing. In this case, it's military personnel, and you see the accounts there for the active Army, the Army National Guard, the Army Reserve, and the Medicare eligible retiree healthcare fund, our contribution to retirees' healthcare after their service is complete.

You'll also see an information box here with the Army end strengths; you'll notice there is no change from FY '10 to FY '11. The Army has completed its end strength growth with the exception of the Reserve component, which will grow to 206,000 by the end of 2012.

And then as you move down the right hand side of the chart, you'll see an 11 year history of budget requests for this particular appropriation group. Each history request goes back to 2001 and shows the then-year dollars as compared to this year's request.

Back over on the right hand side of the chart will include some bullets of key pertinent information about this appropriations group.

So with that, let me tell you a little bit about our military personnel request. The Army is the strength of our nation, and its people are the strength of the Army. Sustaining the quality of our all volunteer force is our first imperative. The military personnel budget request for the U.S. Army of $59.1 million goes far to fulfill this imperative.

The budget request fully funds a total end strength of about 1.1 million military personnel across all three components. Within our OCO request, you'll find additional funding for 22,000 of a temporary end strength increase in FY '11. The military pay as has been discussed earlier today is set at 1.4 percent, equal to the ECI, and included in this budget are estimates for the basic allowance for housing of 3.9 percent increase, and a 3.4 (percent) estimated increase for the basic allowances for subsistence.

I'll go on now to the operations and maintenance overview. As General Stanton explained, the operations and maintenance accounts fund the operation of our bases, the training of our personnel, the maintenance of our equipment and the provision of Army wide support services. For FY '11, the Army's operations and maintenance request totals $43.8 billion.

Within that $43.8 billion, we have $544 million (dollars) for recruiting and advertising, as well as funding for training our all volunteer force. We sustain the force through Army family programs funded at $1.7 billion (dollars). We've also added comprehensive soldier fitness as a program to the FY '11 budget at $42.5 million.

Within our force structure, operations and maintenance fund 73 brigade combat teams and 96 multi functional support brigades. It also funds the administrative and service wide activities to support those formations and our personnel, including about $580 million (dollars) for information, security, and personal systems support.

In addition, it includes operating tempo and other training fundings for a total of 59 brigade combat teams in the base. This training supports a total of 24 rotations through the Army's combined arms training centers and two rotations through an exportable training capability in Europe. We also fund facilities and infrastructure maintenance within this account, and we have a one time increase request in this appropriation for $219 million in O&M to help facilitate final moves for the BRAC requirement and another $78 million to help fund the conversion out of NSPS for our civilian workforce.

We'll move on now to the procurement accounts. This chart simply summarizes some of the investment decisions that we'll cover in more detail on the next couple of charts. So let's move onto aircraft procurement.

Our aircraft procurement request reflects the department's increased investment in manned and unmanned aviation platforms. It supports the development of a 12th combat aviation brigade and begins to acquire airframes for a planned 13th combat aviation brigade.

Some of the quantities and amounts involved in the new air platforms: We're procuring 26 Sky Warrior platforms to add UAV and reconnaissance capabilities for $459 million. We're procuring a total of 72 Black Hawk helicopters; 48 of the UH-60 MYP models and 24 of the UH or the HH-60 MYP models to meet our modular force requirements.

We're funding 16 block-3 conversions of Apache aircraft and other Apache upgrades. We're funding (50) UH-72A Lakota Light Utility helicopters for both our active and Reserve component aviation units.

We're buying modifications to the RQ-7 UAV, which is also known as the Shadow, and we'll plan to modify 46 (systems).

We're going to continue our transition within the Chinook helicopter program -- both buying new F models and converting some of our existing D-model aircraft to F-model aircraft. A total of 40 conversions or new procurements this year for the Chinook platform.

Moving onto missiles and ammunition: These appropriations total $3.9 billion in FY ‘11 and they sustain ongoing programs and replenish stocks of missiles and ammunition across the Army. Some examples of these replenishments including funding ongoing missile programs for the Patriot PAC-3 capability. We plan to procure 78 missiles.

Within the Javelin program at $164 million we plan to acquire 715 missiles. And within the GMLRS program -- the glided -- guided multiple-launch rocket system -- we plan to procure (2,592) missiles at $291 million.

We also have restructured the surface-launched advance medium- range air-to-air missile or SLAMRAAM this year to a more survivable platform that's based on our family of median tactical vehicles. We plan to procure six of these launchers in this fiscal year.

We also continue to procure non line-of-sight launcher system – 23 (systems) for a total of $350 million (dollars). We also fully fund our of our critical ammunition requests, especially small-arms training ammunition. The total funding there is $1.1 billion (dollars).

And finally, we're investing $144 million (dollars) in modernization of ammunition production facilities -- including $87 million (dollars) devoted to Holston Army Ammunition Plant in Tennessee.

Onto wheeled and tracked vehicles: Our request here reflects ongoing work to upgrade modernize and extend the usable life of our primary combat platforms. Major components of this $1.7 billion request are $300 million (dollars) for 83 STRYKER vehicles to enable the conversion of a heavy brigade combat team to a STRYKER Brigade combat team by fourth quarter FY '11.

We're funding 87 Abrams M1A1 Situational Awareness Kits and 58 ODS-Bradley Situational Awareness Kits. Additionally, within our tank program we're funding 21 M1A2 SEP upgrades -- system enhancement program upgrades. And for the STRYKERs, we're continuing with survivability enhancement for those vehicles with an investment of $147 million (dollars).

We're also buying 18 Paladin PIM Howitzers; 5,900 M2 .50 caliber machine guns and 17 armored breaching vehicles at $78 million.

Moving onto our OPA -- other procurement accounts -- the request here continues to upgrades and modernize our combat service and combat service support structure as well as introducing equipment into our modular force. One of the primary investments in this area is in our families of medium tactical vehicles and heavy tactical vehicles.

In our FMTV request, in the base we're asking for 20 -- 2,959 vehicles, plus some associated trailers at a total of $918 million (dollars); and 9,538 heavy -- family of heavy tactical vehicles and some associated trailers for about $549 million (dollars). We'll also be buying a wide range of combat-service support equipment such as petroleum and water distribution systems; mobile maintenance systems; training devices, such as the MILES device; and three force providers. The total in that category is $673 million (dollars).

We'll also be increasing our ability to communicate with this request by buying equipment to support the joint communications effort in combat communications as well. The two major platforms in this buy are WIN-T and JTRS. We will continue to procure WIN-T increment 1 and begin to procure WIN-T increment 2 with upgrades at a low-rate initial production amount $421 million (dollars). And for JTRS we plan to buy 298 ground-mobile radios and 1,655 handheld radios for a total amount of $209 million (dollars).

We'll also continue our procurement and investment in tactical surveillance equipment: $248 million (dollars) for night vision thermal weapons sights and $255 million (dollars) for 540 long-range advanced scout surveillance systems -- also known as LRAS.

Moving onto our RDT&E: appropriation in the base. This appropriation focuses on our new BCT modernization effort and includes funding for the ground vehicle -- ground combat vehicle effort, as well as continued development of capability packages and networks that were initially started with the FCS program. The total amount funded in RDT&E for brigade combat team modernization is $2.5 billion with $934 million (dollars) going toward the ground combat vehicle.

We'll also continue the Patriot MEADS international system RDT&E effort of about -- with about $467 million invested in that program. We'll also continue to develop our communications capabilities with additional investment in WIN-T tactical networking, developing both the initial capability for communications on the move and full -- and movement toward full networking on the move with finalizing increment 2 and beginning increment 3.

We have a number of investments in key aviation intelligence, air defense and combat vehicle programs. Total there: $1.8 billion (dollars). Some examples include air survivability equipment of $172 million (dollars); the JAGM missile at $130 million (dollars); ISR platforms of various kinds, $136 million (dollars); and STRYKER survivability modifications of $136 million (dollars).

And finally, we fund our vital technology programs with ($1.9) billion, which includes another $10 million increment against our $50 million commitment to the National Institute of Mental Health.

Next chart is our facilities chart. Our Army's facility request reflects the changes brought about by BRAC and privatization of Army family housing. Both those efforts are coming to fruition in FY '11 and allow Army to begin to shift TLA from BRAC and family housing back toward the MILCON accounts and cross-level it to other needs within the Army.

You can see from these charts that our BRAC has dropped down to about $1.1 billion. That'll finalize this year. And decreases in family housing also reflect the intensive privatization with that area of our facilities.

Within MILCON -- the military construction budget of $5.3 billion (dollars) includes and investment of $1.1 billion (dollars) in both permanent party and training barracks. The family housing projects that finalize this year include 56 units at Carlisle Barracks and 125 units at Fort Eustis.

And finally, there are $16.5 million in the request to help assist individual homeowners who sustain an economic loss due to BRAC or having to -- a realignment of military installations.

This concludes our portion on the base budget request and we'll move not to the FY '11 OCO request.

GEN. STANTON: So turning to the chart entitled "FY '11 Army OCO Request" you see that the total here in the Army request is $102 billion -- almost 17 of which is for executive agency programs, Afghan security forces, JIEDDF.

The '11 request, which as you know under the current administration is scored -- as well as the base budget -- funds 83 active and 47,000 reserve component soldiers deployed to the battle space in the AOR.

So the BCTs in Iraq will decrease from six adversary and assistant brigades to four by the last quarter of '11. And the ramp will be -- we start at 50, 35 by the end of the fiscal year and zero by December. We still expect to be on that glide path and that plan. Again, all of that subject to the enemy's vote in what goes on in Iraq as we proceed through the election.

But right now, we believe that the drawdown is on glide path and on target to be out by December. The money is kind of -- the request in '10 is about 50/50 between Iraq and Afghanistan. And I think in '11, will be 70 percent in Afghanistan and 30 percent in Iraq. The BCTs in Afghanistan when we reach the -- when the three that I mentioned earlier deploy, we'll be at eight and hold at eight. And that's again the 73,000 troop strength to include 23,000 that we deploy this year in FY '10.

So what we're going to do now is -- Ms. Miller is going to talk to the piece parts of the request, the 102 for '11 OCO.

MS. MILLER: Okay, thank you, sir.

We'll turn to the military personnel summary chart. The OCO request for FY '11 is about $11.9 billion for military personnel support. This funds mobilizing 81,500 reservists for FY '11 on average, 28,700 from the Army Reserve; and 52,800 from the Army National Guard. This total represents our very best estimate as of today on how many Guardsmen or reservists will be mobilized to support the force in FY '11. Of course, should conditions in theater change, this estimate would then be adjusted.

It also funds special pays for all of our deployed personnel, both active and reserve. It pays for subsistence in kind for all of our deployed forces -- active and reserve. It covers pay for our reservists prior to mobilization while they are going through pre- deployment training. It includes incentives for phasing out of stop loss; and then as we mentioned before, it funds the 22,000 in temporary active component end strength for FY '11.

Moving on to the operations and maintenance chart; Operations and Maintenance OCO request across the Army total $63.4 billion. It funds theater operations, transportation to, from and within the theater, force protection for everyone in the theater, base camp support contracts all throughout the theaters of operation, pre-mobilization and pre-deployment training for our Guard and reserve forces, as well as funding for mobilization station and power projection platform support here in the continental United States. It also includes $7.8 billion for -- (inaudible) -- funded reset of equipment.

The next slide is the research, development and acquisition summary page. We're going to talk about this. We're going to use this page for our research -- our RDA discussion. There are two more charts in your packet that break down the appropriations in a little more detail. But for the sake of time and allowing you some extra time for questions, we won't cover those.

So as General Stanton said earlier, our procurement request for the OCO primarily replaces battle losses, equipment that has been lost, used up or washed out in support of the fight, or it provides for security encounter measurers and force protection platforms. You see in this chart some of the major platforms that we are funding with $516 million for the family of medium tactical vehicle trucks; 792 of those trucks are going to go to the reserve component. We have $445 million for additional force protection for the STRYKER units, $199 million (dollars) for modifications to the Apache, $187 million (dollars) to replace 15 battle loss Kiowa Warriors.

And then, we have funding in this request to replace two each of Chinook and Blackhawk helicopters that are also battle losses. We plan to spend $989 million (dollars) on recapping Humvees out of this request. And we're replacing 1,200 TOW missiles and buying 56 ITAS TOW kits for that particular weapon system. We're also funding $354 million (dollars) in security counter measures, including persistent threat detection systems and persistent grounds security systems.

We're also replacing ammunition. One example of that, is $129 million (dollars) for 50-cal ammunition that's been used up in the fight. So with that, we'll go two pages to the facilities slide. And the last piece of our FY ‘11 OCO request is $930 million (dollars) to fund facilities in Afghanistan. It includes airfield facilities, billeting, force protection, medical infrastructure, operational infrastructure, utilities and various support facilities across the bases in Afghanistan.

GEN. STANTON: So we're going to stop there and answer your questions -- or attempt to answer your questions.

Q In the FY ‘11 OCO you request about $3.3 billion for JIEDD that compares with about $1.5 billion (dollars) from the FY '10, not the OCO from the FY ‘10 budget. Why such a drastic increase?

GEN. STANTON: JIEDDO is multiyear money and -- (inaudible) -- I think that if we went back one other year it would be higher than as executed -- it's down, it's a multiyear appropriation. So a year-to- year -- (inaudible) -- like that. And we can get you the earlier numbers if you'd like.

Q I just want to know why such an increase. Is it because of what's going on in Afghanistan?

GEN. STANTON: I mean --

(Off mike exchange.)

Q Okay. Also, you're asking for a lot less in the base budget. Why are you asking for $200 million (dollars) vice $600 million (dollars) in the last budget?

GEN. STANTON: They're operating -- that money is to operate the JIEDDO, their headquarters, their operation. And -- yeah --

MS. MILLER: OSD -- we execute the funds, but we don't actually formulate the JIEDDO budget.

GEN. STANTON: We're just the banker for it, we don't execute it.

Q What's the funding for the Armed Aerial Scout Program; and how will that money be spent in FY ‘11?

MS. MILLER: Armed Aerial Scout -- is that the Raven?

Q (Off mike)

MS. MILLER: Oh, the Armed Reconnaissance Helicopter --

GEN. STANTON: The Armed Reconnaissance Helicopter, no.

Q Could I ask another helicopter question please? I'm Rick Whittle, I write for Rotor and Wing. Can you break down some detail in dollars, personnel and helicopters that are going to be procured or paid for, for this new 13th Combat Aviation Brigade?

GEN. STANTON: I can speak to the composition of a heavy Combat Aviation Brigade in terms of the aircraft platforms. We're still working the sourcing for where we'll find that -- the aircraft. But it's about 113 aircraft.

Q That are being procured for that this year? Or --

GEN. STANTON: No. There are some -- there is procurement of aircraft here. How we will actually end up distributing the aircraft between the 12th CAB and the 13th CAB, and other Army competing requirements for aircraft support; yet to be determined.

Q And just if I may, one more related question. You've got about $900 million more I think for aircraft procurement in this budget. What explains that large of an increase?

MS. MILLER: It's most of the things that are on the aircraft procurement chart in your handout package. So it's the $459 million (dollars) in Sky Warrior, that's a pretty big add. And I'm guessing the modifications to the Shadow is another big add in there.

GEN. STANTON: The year-to-year between Apache. Chinook, Blackhawk it varies tremendously in terms of what we're doing there. But if that's useful to you, we can get you the actual numbers that are in the procurement.

Q (Off mike)

GEN. STANTON: Okay. Yes, sir.

Q Paul Rothman with Bloomberg News. In the research dollars, you have $2.5 billion for brigade, combat team modernization. You said $934 million for the gun combat vehicle.

MS. MILLER: Right.

Q Do you expect to start the competition in FY ‘11, and complete it? What's the plan?

GEN. STANTON: No, the plan frankly is still being developed. As you know, when the program was terminated, we went back to Training and Doctrine Command and they came forward with our requirement analysis. But we still don't have the capability, the development document, you know, the whole 5,000.2 process is still working.

Q What will this money fund then?

GEN. STANTON: Long lead procurement.

MS. MILLER: Development, all of the research that goes into that.

GEN. STANTON: Development.

Q I would ask you then -- begin the competition, which is why you have the money in the --

GEN. STANTON: I don't know when the competition would actually take place. There will however be a competition. I think we're still working through the timeline and the schedule.

Yes, ma'am.

Q In fiscal ‘11 you're terminating the Humvee production line. Is there going to be a new vehicle being produced in Fiscal '11 or are you just going to survive on the current inventory for awhile?

GEN. STANTON: We're not terminating the line because there are -- the Army is not buying more Humvees, but there are other people that buy Humvees. So the line will remain open. We of course still have some other prior year Humvee procurement to accomplish as well. So the line is not terminating.

We have reached the Army acquisition objective for Humvees. And we're there sooner than we expected for two reasons. One is we've had fewer losses and washouts in Iraq. And then secondly, with the MRAP ATVs, and other MRAP variance that have been procured and made available to Army, we've had less uses for the Humvees.

But, we envision the Humvees to being enduring part of the Army vehicle fleet mix.

Q Do you anticipate any pushback on its own -- (inaudible) -- or for closing the, or ending the production of the Humvee. I mean, there is likely going to be a lot of push back on that.

GEN. STANTON: I would leave the resolution of that question to you. I mean, you know, I -- because we were not able to speak to the budget, it's been embargoed, we've not yet in-depth briefed the members of the Congress and the staffers on the way forward as we see it.

Q (Off mike) -- the costs of going from a heavy brigade combat team to a STRYKER bridge, I saw in there as $300 million is what you have budgeted for STRYKER. There are other costs associated with that? What's the final number?

GEN. STANTON: The final number, I think a STRYKER brigade in total is 1.6 billion (dollars), something like that. The conversion here, I would have to get back to you on the details of the conversion.

Q The Army for a while now has been talking about opening a competition to replace the M-4, and also recently put out a market survey to possibly upgrade about 500,000 M-4s. Is there any money in the budget FY ‘11 for small arms development?

GEN. STANTON: I don't know about development. We're still procuring M-4s. I don't know about the development.

Q On the ground vehicle piece, I see that your budget documents indicate a 30 percent drop in wheeled combat vehicles and other combat vehicle spending, so it goes down from $2.4 billion (dollars) total budget authority -- to $2.4 billion (dollars) from $3.46 billion (dollars). Is that because of the delay in the STF successor program?

GEN. STANTON: I don't have those numbers, but that sounds like comparing a base number to a combination of base and an OCO. And then the other part of that is, of course, from when the program was terminated, the procurement line moved to RTD&E. We actually have an increase across the program for the manned ground vehicle. Unmanned combat vehicle, I'm sorry.

Q Is that just for the successor program, that 900, or is that for all --

GEN. STANTON: No, that's for the successor program. So that's actually an increase in our funding for the ground combat vehicle.

Q But it's R&D money?


Q Can you clarify a little the ground combat vehicle. You said you're not expecting to have a contract in FY ‘11. What exactly -- what kind of development money are you putting into it, and where is this money going? I mean, if you don't have a contractor. What are you developing?

GEN. STANTON: We're developing the combat design and development. The actual development of what the vehicle would look like across all of the KPPs. It's back to the beginning.

Q So you won't be at the contractor level?

GEN. STANTON: Right. Not yet.

Q You spoke about in your RTD&E budget, I believe it was $136 million for ISR platforms. Can you go into any detail about that? Is that all unmanned aircraft, or is that --

GEN. STANTON: No, we also have -- and I think that number refers to the ground surveillance sensors that we have, the raids towers, the best -- those other capabilities that we put on the forward operating bases.

Q What about the smaller UAVs?

GEN. STANTON: The Raven and the Shadow? Yes, we are buying both Ravens and Shadows. Do you need a number for that?

MR. WITHER: (Off mike) -- I think it was about 312 aircraft. Shadows, we're not buying any of those. However, we are modifying existing platforms.

GEN. STANTON: Yes, sir?

Q Do you have any estimates of what's planned for SRBs in 2011 -- (inaudible) -- and how much would be spent on incentives to phase out stop-loss?

GEN. STANTON: Do you have the numbers? I think it's $400 and some million. It's about the same level as we had.

MS. MILLER: SRBs are $400 million for FY '11 for the active component, and total investment in stop-loss related incentives -- Karen, do you have that?

GEN. STANTON: There are a number of different stop losses in --

MS. MILLER: Five different stop-loss incentives. I can add them up. I have them on a different info paper. I just don't have it totaled up across the five for you.

STAFF: Two more questions.

Q I wanted to ask you again about ARH. I know there's an announcement of alternatives supposed to be completed this year to figure out what's coming next, and the Army has three EADS helicopters going out to the field to kind of test and fly around, see what possibilities that offers. So there's no line item or money anywhere sort of for redirecting that effort?

GEN. STANTON: Go ahead, Dale.

MR. HANSON: Well, the analysis of alternatives that you're discussing really is a two-phased thing. It's not going to be complete until probably April of '11, when it's finally reported out. So up until then we don't know what the solution is going to be to meet those requirements. So I would anticipate that other than the money that's in the program right now to complete the analysis of alternatives that there will not be anything in the budget for a follow-on ARH, if you will, until the '12 budget.

Q Thank you.

MR. FOSTER: Final question.

GEN. STANTON: In the back.

Q (Inaudible) My question is about possible headquarter relocation to Zama in Japan, which was agreed in the U.S.-Japan force realignment roadmap in 2006. So will you appropriate for that relocation in the FY ‘11 budget?

MS. MILLER: I don't know anything about that. I can't say.

GEN. STANTON: I'm sorry, I'm not familiar with the issue, sir. We'll link up with you later and see if we can't help. But there is nothing in the '11 budget related to that that I have cognizance of.

MR. FOSTER: Thank you all for your time, ladies and gentlemen. We appreciate it.


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