Defense Budget: Trends in Active Military Personnel Compensation Accounts for 1990-97 (Letter Report, 07/09/96, GAO/NSIAD-96-183)
GAO reviewed the Department of Defense's (DOD) military personnel
compensation accounts, focusing on: (1) the accounts' various pay
categories; (2) trends in those pay categories; and (3) how changes in
the DOD budget compared with changes in service force levels.
GAO found that: (1) since 1990, decreases in the active military
personnel accounts have been closely aligned with decreases in active
military personnel; (2) between fiscal years 1990 and 1997, the active
military personnel account is projected to decline by 30 percent; (3)
military personnel accounts consist of basic pay, retired pay accrual,
basic allowances for quarters, subsistence, and social security tax
payments; (4) because the services only have discretion over a very
small portion of the military personnel budget, savings would need to
come from personnel reductions, a lower grade structure, or a
restructured military compensation and retirement system; (5) although
per person costs for most personnel accounts have increased, total
military personnel costs have remained constant largely due to offsets
in the retired pay accrual category; (6) the cost per military person
has decreased to about $40,600; (7) differences exist in the services'
personnel budgets and per person costs for special pay; (8) special pays
are estimated to cost $1.2 billion, and incentive pays are estimated to
cost $500 million in fiscal year 1997; and (9) the Navy has the largest
budget for special pays and the Navy and Air Force have the largest
budgets for incentive pays.
--------------------------- Indexing Terms -----------------------------
REPORTNUM: NSIAD-96-183
TITLE: Defense Budget: Trends in Active Military Personnel
Compensation Accounts for 1990-97
DATE: 07/09/96
SUBJECT: Military downsizing
Defense cost control
Future budget projections
Personnel management
Military personnel
Defense budgets
Military pay
Military expense allowances
Budget cuts
Variable incentive pay
IDENTIFIER: DOD Future Years Defense Program
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Cover
================================================================ COVER
Report to the Chairman, Subcommittee on National Security, Committee
on Appropriations, House of Representatives
July 1996
DEFENSE BUDGET - TRENDS IN ACTIVE
MILITARY PERSONNEL COMPENSATION
ACCOUNTS FOR 1990-97
GAO/NSIAD-96-183
Defense Budget
(701064)
Abbreviations
=============================================================== ABBREV
DOD - Department of Defense
GAO - General Accounting Office
Letter
=============================================================== LETTER
B-272437
July 9, 1996
The Honorable C. W. Bill Young
Chairman, Subcommittee on National Security
Committee on Appropriations
House of Representatives
Dear Mr. Chairman:
The Department of Defense's (DOD) budget request for fiscal year 1997
includes almost $70 billion for pay and allowances for active and
reserve military personnel. This represents about 30 percent of
DOD's fiscal year 1997 total budget request. DOD estimates that in
2001, pay and allowances will continue to represent about 30 percent
of the total budget. Because the military personnel accounts
represent such a large share of DOD's budget, we reviewed them to (1)
identify the various pay categories included in the accounts, (2)
identify the trends of those pay categories, and (3) determine how
changes in the budget compared with changes in service force
levels.\1 We also inquired into the reasons for some of the service
trends and differences among the services and have included the
explanations when available.
Our analyses and discussions in this report focus primarily on the
pay and allowances for active components, which for fiscal year 1997
comprise about $60 billion of the $70 billion requested. We will
report separately on the reserve components because the budget
categories for the reserve are considerably different from the active
components.
Our review was performed under our basic legislative
responsibilities. However, because of your expressed interest in the
military personnel accounts, we are addressing the report to you.
--------------------
\1 Our analysis used actual obligations for fiscal years 1990 to 1995
and budget estimates for fiscal years 1996 to 1997.
BACKGROUND
------------------------------------------------------------ Letter :1
Military pay and allowances for active and reserve personnel are
authorized in title 37 of the U.S. Code and are funded through the
military personnel accounts. Military personnel is one of six major
budget groups for DOD.\2 It is the second largest of DOD's budget
groups after operation and maintenance and is expected to remain
second through 2001.
The accounts for active duty personnel consist of 13 major
categories, including basic pay; retirement accrual; social security
taxes; allowances (e.g., for quarters, subsistence, relocation, and
uniforms); incentive pay (e.g., flying duty, submarine duty,
parachute jumping, and demolition); and 21 types of special pay for
such specialties and purposes as medical officers, nuclear-qualified
officers, sea duty, foreign language proficiency, and reenlistment
bonuses. A list of these pay categories appears in appendix I.
The military personnel accounts fund a sizable portion of DOD's
infrastructure, which DOD wants to decrease to help pay for modern
weapon systems. For example, we reported in April 1996 that about 30
percent of DOD's planned direct infrastructure costs are funded out
of the military personnel appropriation.\3 DOD defines infrastructure
as all DOD activities other than those directly associated with
operational forces, intelligence, strategic defense, and applied
research and development. Infrastructure consists of central
logistics; central medical; central personnel; central training;
acquisition management; installation support; force management; and
central command, control, and communications.
DOD's fiscal year 1997 budget request estimates that there will be
about 1.4 million active duty military personnel in uniform by the
end of that fiscal year. This total would represent a decrease of
about
600,000 personnel since fiscal year 1990.
--------------------
\2 The other major account groups are operation and maintenance;
procurement; research, development, test, and evaluation; military
construction; and family housing.
\3 In Defense Infrastructure: Budget Estimates for 1996-2001 Offer
Little Savings for Modernization (GAO/NSIAD-96-131, Apr. 4, 1996),
we reported that 90 percent of planned direct infrastructure costs
are funded out of three appropriations: operation and maintenance
(about 50 percent); military personnel (about 30 percent); and
research, development, test, and evaluation (about 10 percent).
RESULTS IN BRIEF
------------------------------------------------------------ Letter :2
Discounting for inflation by using constant 1996 dollars, there has
been a close correlation since 1990 between the decrease in the
active component portion of the military personnel accounts and the
decrease in active military personnel. Specifically, the active
component portion of the military personnel accounts is projected to
decline between fiscal years 1990 and 1997 by 30 percent, the same
rate of decline as active force levels.
About 85 percent of the military personnel accounts in fiscal year
1997 consist of five pay categories: basic pay (51 percent); retired
pay accrual (17 percent); basic allowances for quarters (7 percent);
subsistence (5 percent); and social security tax payments (4
percent). The payments in these and most other categories are
requirements or entitlements by law. The services have discretion
over some types of compensation, primarily within the special pays
category, but the total amount involved is a minuscule portion of the
total military personnel budget. Because very little of the total
military personnel budget is discretionary, it appears that savings
in the military personnel part of the infrastructure would have to
come from personnel reductions, a lowering of the grade structure, a
restructuring of the military compensation and retirement system, or
any combination thereof.
Discounting for inflation by using constant 1996 dollars, the cost of
each person in fiscal year 1997 is projected to be about the same as
it was in fiscal year 1990. However, per person costs remained about
the same from fiscal year 1990 to fiscal year 1997 largely because a
substantial decrease in the retired pay accrual category offset per
person increases that have occurred in most of the pay categories.
Specifically, the cost per military person has decreased by about $80
between 1990 and 1997 to about $40,600. A decrease of about $2,000
per person in retired pay accrual mostly offset increases in basic
pay ($700), the basic allowances for quarters ($200), and six other
categories.
There are marked differences in the services' budgets and per person
costs for some types of special pay, which are intended to enhance
the retention of skilled personnel, and for some incentive pays for
hazardous duty. Special pays were estimated to cost $1.2 billion in
fiscal year 1997, and incentive pays were estimated to cost about
$500 million for the same year. The Navy dominates the special pay
category, and the Navy and the Air Force have the largest budgets for
incentive pays.
DECREASE IN PERSONNEL BUDGET
CLOSELY FOLLOWS DECREASE IN
PERSONNEL
------------------------------------------------------------ Letter :3
The military personnel budget, adjusted to 1996 constant dollars, is
projected to decrease at about the same rate as military personnel
levels between fiscal years 1990 and 1997. (See app. II for an
overview of budget and personnel level changes from fiscal years 1990
to 1997.) Figure 1 shows that the military personnel budget for
active forces is projected to decline by 30 percent from about $85
billion to $60 billion through fiscal year 1997, while military
personnel levels are projected to decline by the same rate from over
2 million to about 1.4 million.\4
Figure 1: Decline of Military
Personnel Budgets and Personnel
Levels Between Fiscal Years
1990 and 1997
(See figure in printed
edition.)
The decline in budgets and personnel levels for each of the services,
except for the Marine Corps, have mirrored the overall declines. The
Marine Corps' military personnel budget is projected to decline by
about 15 percent while its personnel level is projected to decline by
about 12 percent. Figure 2 shows the declines for each of the
services.
Figure 2: Percentage Reduction
in Military Personnel Budgets
Compared to Percentage
Reduction in Personnel Levels
Between Fiscal Years 1990 and
1997
(See figure in printed
edition.)
--------------------
\4 Personnel levels are as of the end of the fiscal year, or end
strength.
MILITARY PERSONNEL ACCOUNT
PRIMARILY COMPRISED OF
ENTITLEMENTS
------------------------------------------------------------ Letter :4
Legislated entitlements, retired pay accrual, and social security
taxes account for nearly the entire military personnel budget.
Generally, once servicemembers meet certain criteria such as years of
service, marital status, and duty location, they are entitled to
certain benefits. Title 37 of the U.S. Code gives the services
discretion over only a limited number of military personnel account
categories, primarily certain types of special pay that the services
use to enhance the accession and retention of certain skilled
personnel. These categories represent well under 1 percent of the
total military personnel budget. Figure 3 shows that five budget
categories--basic pay, retired pay accrual, basic allowances for
quarters, subsistence, and social security tax payments--are
projected to comprise nearly 85 percent of the military personnel
budget for fiscal year 1997. Figure 3 also shows that about half of
the military personnel budget is projected for basic pay.
Figure 3: Allocation of Fiscal
Year 1997 Military Personnel
Budget
(See figure in printed
edition.)
Note: Other includes permanent change of station, allowances,
variable housing allowance, special pay, separation pay, incentive
pay, other military personnel costs, and cadets/midshipmen pay.
Given the present situation, there appears to be little opportunity
for reductions in the military personnel budget unless forces are
reduced, the average grade structure is reduced, or the military
compensation and retirement system is restructured. According to
DOD's Future Years Defense Program and DOD officials, DOD does not
plan to significantly reduce the forces\5 or grade structure or
restructure the military compensation and retirement system. Our
February 1996 report on personnel relocations shows the difficulty in
reducing entitlement budgets. The report states that although the
services have attempted to reduce permanent change-of-station costs,
they have little discretion to do so because of relocation benefits
required by law and treaty or other commitments that require
relocation.\6
--------------------
\5 The Future Years Defense Program calls for relatively modest
personnel reductions between fiscal years 1997 and 2001. For
example, the Army plans to reduce its force by another 20,000
personnel, the Navy by about 13,000, and the Air Force by about
6,000.
\6 Military Personnel Reassignments: Services Are Exploring
Opportunities to Reduce Relocation Costs (GAO/NSIAD-96-84, Feb. 16,
1996).
PER PERSON COSTS FOR MOST
ACCOUNTS HAVE INCREASED
------------------------------------------------------------ Letter :5
The active military force has decreased in size since fiscal year
1990. The overall proportion of officers, noncommissioned officers,
and other enlisted personnel in the force is projected to be almost
the same in fiscal year 1997 as it was in fiscal year 1990, with a
1-percent increase in the proportion of officers and a 1-percent
decrease in the proportion of enlisted personnel. The proportion of
officers in the Army, the Navy, and the Air Force increased between 1
and 2 percent, and the Marine Corps' grade structure remained
relatively stable during the period. Consistent with quality-of-life
improvements such as making housing more affordable, some pay
categories have increased. The cost per military person has
decreased by about $80 from fiscal years 1990 to 1997 to about
$40,600.\7 However, major decreases in the retired pay accrual
category largely offset increases in other categories. Otherwise,
increases in the rates for basic pay and basic allowances for
quarters would have resulted in a cost increase on a per person
basis.
Excluding the retired pay accrual, which is projected to decrease by
about $2,000 per person, and separation pay, which is projected to
increase by almost $400 per person, the per person cost of military
pay and allowances is projected to increase by over $1,500 between
fiscal years 1990 and 1997. Figure 4 shows the decline in the total
budget for pay and allowances and the increase in per person costs
between fiscal years 1990 and 1997, when retired pay accrual and
separation pay are excluded from the budget.
Figure 4: Trend in Per Person
and Total Cost of Military
Personnel for Fiscal Years 1990
to 1997, Excluding Retired Pay
Accrual and Separation Pay
(See figure in printed
edition.)
Table 1 compares the per person costs by service and major pay and
allowance category for fiscal years 1990 and 1997. Table 1 also
shows that:
-- Basic pay. The Marine Corps' costs are considerably lower than
the other services' in both fiscal years 1990 and 1997. The Air
Force's costs have remained consistently higher than the other
services. Air Force budget officials explained that its costs
could be higher due to its higher officer-to-enlisted ratio,
longevity for Air Force members, and higher-graded personnel.
-- Basic allowances for quarters. The Air Force is projected to
have the smallest increase between fiscal years 1990 and 1997 (3
percent), but its allowances were considerably larger than the
other services in 1990. The Army's basic allowances for
quarters increased 14 percent, while the Navy's rose 10 percent.
The Marine Corps is projected to have a 4-percent decrease.
Army budget officials said its increase largely resulted from an
increase in the percentage of married personnel from 56 percent
to 64 percent along with some changes in the grade structure.
Air Force officials mentioned that rates increased by 5 percent
in fiscal year 1996. Navy personnel officials said that the
increase is primarily due to a more senior force with more
dependents. Specifically, the top 6 percent of enlisted pay
grades are projected to increase from about 68 percent in 1990
to 69 percent in 1997 while the percentage of servicemembers
with dependents is projected to increase from 53 percent in 1990
to 60 percent in 1997. Additionally, beginning in fiscal year
1997, single E-6s will become entitled to the basic allowance
for quarters, thus significantly increasing the number of people
entitled to receive this allowance.
-- Variable housing allowance. The Navy's costs are considerably
greater than the other services'. Costs are projected to
increase for all services, except the Marine Corps. The Army's
variable housing allowance rose 51 percent between fiscal years
1990 and 1997, the Air Force's rose 23 percent, the Navy's rose
17 percent, and the Marine Corps' declined 13 percent. The
Navy's cost per person was substantially higher than any other
service. Navy officials said the primary reason the Navy's cost
per person is so much higher than the other services is due to
the fact that the Navy's U.S. bases are located on the coasts
in higher cost areas. For example, the Navy has bases in San
Diego, California; Norfolk, Virginia; Jacksonville, Florida;
Seattle, Washington; San Francisco, California; and New London,
Connecticut. In addition, as the Navy grows into a more senior
force, the cost per person entitled to the allowance rises.
Moreover, as a larger percentage of the force has dependents, a
growing percentage of the force is entitled to the allowance.
Army officials said that the percentage of personnel stationed
overseas, where they are not eligible to receive the allowance,
decreased from about 36 percent in 1990 to an estimated 24
percent in 1997. Air Force officials said that base closures
resulted in moving personnel who had been in base housing to
places where there were high base housing occupancy rates and
also where the variable housing rates were higher. Also,
changes in the dormitory assignment policy for enlisted
personnel resulted in more personnel using off-base housing.
-- Special pays. The Navy's costs are greater than all the other
services combined. The Air Force's costs are projected to
increase by 32 percent between fiscal years 1990 and 1997, while
the other services' costs are decreasing. The Marine Corps is
projected to have a 50-percent decrease. Navy officials said
sea duty and selective reenlistment bonuses primarily contribute
to their higher special pays. The Navy's forward presence
drives up the percentage of people entitled to sea pay.
Specifically, 30 percent of the force are entitled to receive
sea pay. Moreover, the Navy considers the bonuses critical
tools for retaining quality sailors in critical skill areas.
Air Force officials said that recruitment needs affected special
pay costs and that contingency operations were an important
factor as well. For example, hostile fire payments increased by
25 percent, and flight pay and language proficiency pay were
also affected. Congress approved some new special pay
categories and also increased medical pays.
-- Allowances. The Navy's and the Marine Corps' costs were
considerably less than the Army's and the Air Force's in fiscal
year 1990, but the Navy budget estimate indicates the gap will
narrow by fiscal year 1997. All the services project increases.
The Navy has projected a 68-percent increase in per person costs
between fiscal years 1990 and 1997. The Marine Corps' costs
will be lower than the other services' despite a 43-percent
increase in allowance costs per person. Navy officials said the
single largest contributor to the increase in the cost per
person from 1990 to 1997 is the overseas station allowance. The
allowance is authorized to assist a member in defraying the
excess cost incurred when assigned to a permanent duty station
abroad. The allowance includes housing, cost-of-living, and
temporary lodging allowances. In recent years, unfavorable
currency fluctuations, especially the Japanese yen, have been
the major cause for the increase in the allowance. For example,
in July 1996, prices in Yokosuka, Japan, are approximately 42
percent higher than the average U.S. city. Since 1990, a
larger percentage of the Navy's total workforce is in overseas
billets as the Navy has downsized. The Air Force said that
overseas currency rates have contributed to escalating the
allowance costs beyond the normal inflation rate. Base closures
in Europe and contingency operations have also contributed to
higher costs.
-- Permanent change-of-station travel. The Army's and the Air
Force's costs are considerably greater than the Navy's and the
Marine Corps'. Increases from fiscal years 1990 to 1997 range
from 6 percent for the Marine Corps to 15 percent for the Army
and the Navy. According to Air Force officials, differences in
the services' relocation costs are due to differences in the
mixture of moves and varying relocation policies. For example,
the services have different weight restrictions, different rank
and grade mixes, and movements to different locations. Navy
officials said a prominent contributor to the increase in
permanent change-of-station travel is the increased cost of
separation moves. Separation moves, as a percent of total
moves, increased from 29 percent in 1990 to 31 percent in 1997.
The increase in cost per move is also attributable to a more
senior force with more dependents. Navy officials said the Navy
has been able to decrease the number of operational moves
through efforts to reassign people locally after ship
decommissioning. However, when a steady state is reached, these
efficiencies will no longer be achievable.
-- Retired pay accrual. The accrual for each service is projected
to decrease by a range of about 22 percent to 25 percent between
fiscal years 1990 and 1997. The retired pay accrual estimate is
the product of the full-time normal cost percentage of basic pay
and the total amount of basic pay expected to be paid during the
fiscal year. DOD's actuary sets the normal cost percentage to
accrue the funds necessary to meet the future retirement
obligation for current personnel. The normal cost percentage
has been declining. For example, the normal cost percentage was
43.9 percent in fiscal year 1990 and is set at 32.6 percent for
fiscal year 1997.
-- Total per person costs. The Air Force has the highest and the
Marine Corps the lowest per person costs, but the Air Force
projects a decrease of about $1,100 (3 percent) during the
period, while the Marine Corps projects a decrease of over
$1,400 (4 percent). The other two services project increases of
1 percent to 2 percent. Although the Air Force's costs are
projected to decrease by fiscal year 1997, the Air Force's
fiscal year 1997 costs are about 6 percent higher than the
Army's and the Navy's and about 25 percent higher than the
Marine Corps'.
Table 1
Per Person Costs by Service and Budget
Category
Fiscal Air Marine
Budget category year Army Navy Force Corps
-------------------------------- ---------- ------ ------ ------ ----------
Basic pay 1990 $19,68 $19,28 $22,06 $17,900
9 0 5
1997 20,682 20,237 22,443 18,132
Basic allowances for quarters 1990 2,491 2,848 3,005 2,246
1997 2,842 3,144 3,106 2,163
Variable housing allowance 1990 350 1,020 569 812
1997 530 1,194 699 704
Special pays 1990 626 1,723 477 551
1997 571 1,596 632 277
Allowances 1990 1,345 786 1,224 841
1997 1,490 1,321 1,502 1,199
Permanent change of station 1990 1,778 1,222 1,855 1,213
1997 2,038 1,412 2,062 1,288
Retired pay accrual 1990 8,643 8,464 9,626 7,858
1997 6,742 6,590 7,316 5,902
Other 1990 4,840 4,848 5,449 4,421
1997 5,841 5,207 5,400 4,752
================================================================================
Total 1990 39,762 40,191 44,270 35,842
1997 $40,73 $40,70 $43,16 $34,417
6 1 0
--------------------------------------------------------------------------------
Source: GAO analysis based on services' budget estimates.
Note: Totals may not add due to rounding.
--------------------
\7 For per person calculations, we used average yearly strength
reported by the services in their budget submissions. Average yearly
strength includes reservists who serve on active duty, and the budget
figures also include the personnel costs of reservists who serve on
active duty.
VARIANCES EXIST IN THE
SERVICES' SPECIAL AND INCENTIVE
PAY BUDGETS
------------------------------------------------------------ Letter :6
There are marked differences in the services' budgeting for some
types of special pays, which are intended to enhance the retention of
skilled personnel, and for incentive pays for hazardous duty,
submarine duty, and aviation careers. Special pays in particular,
which will decline by
33 percent to just over $1 billion by fiscal year 1997, vary by type
and service and are not necessarily proportional to a service's share
of overall personnel levels. The total reduction in special pays,
however, approximates the reduction in personnel levels.
Figure 5 shows that the Navy dominates the special pay category by
budgeting more than the Air Force, the Army, and the Marine Corps
combined (about $656 million estimated for fiscal year 1997).
Figure 5: Trends in Special
Pays by Service
(See figure in printed
edition.)
Figure 6 shows that the Navy accounts for over 53 percent of the
total special pays budget in fiscal year 1997, while its share of the
personnel level is 28 percent. The fiscal year 1997 Navy budget
estimate equates to approximately $1,600 per servicemember, compared
to the next highest for the Air Force at about $630.
Figure 6: Services' Share of
Personnel and Special Pays for
Fiscal Year 1997
(See figure in printed
edition.)
As shown in figure 7, the Navy's largest special pay categories are
for sea and foreign duty, reenlistment bonuses, and medical
personnel. The Navy is the only service that budgets for
nuclear-qualified officer pay, nuclear accession pay, and officer
responsibility pay. Also, the Navy uses an "other" classification of
special pay, which is estimated to be about $26 million for fiscal
year 1997.
Figure 7: Navy Allocation of
Special Pays for Fiscal Year
1997
(See figure in printed
edition.)
Note: Other includes other special pay ($26), language proficiency
($2),
and responsibility pay ($1).
The incentive pay, hazardous duty, and aviation career categories are
projected to decline from $833 million in fiscal year 1990 to $533
million in fiscal year 1997, or 36 percent. Figure 8 shows that the
Navy and the Air Force have the largest budgets and per person costs
for both fiscal years 1990 and 1997.
Figure 8: Services' Total
Budgets and Per Person Budgets
for Incentive Pay
(See figure in printed
edition.)
AGENCY COMMENTS
------------------------------------------------------------ Letter :7
We provided a draft of this report to DOD for comment, but DOD chose
not to comment formally on the draft. We did, however, incorporate
informal comments from DOD and service officials.
SCOPE AND METHODOLOGY
------------------------------------------------------------ Letter :8
To identify budget trends and differences in costs among the
services, we analyzed each service's estimate for its annual military
personnel budget submission to Congress. For fiscal years 1990 to
1995, we used actual costs. For fiscal years 1996 and 1997, we used
estimated costs. We adjusted the nominal dollars to constant fiscal
year 1996 dollars using 1996 DOD inflation factors for military
personnel costs. We did not analyze or verify the services'
assumptions supporting the estimates, nor did we verify the accuracy
of the data presented in their budget estimate submissions. We asked
DOD and military service representatives to explain some of the
trends and differences among the services. We incorporated the
explanations we received and considered relevant. We did not verify
the services' explanations.
We conducted our work from October 1995 to June 1996 in accordance
with generally accepted government auditing standards.
---------------------------------------------------------- Letter :8.1
We are providing copies of this report to appropriate congressional
committees; the Secretaries of Defense, the Air Force, the Army, and
the Navy; the Commandant, U.S. Marine Corps; and the Director,
Office of Management and Budget. We will also provide copies to
other interested parties upon request.
If you have any questions concerning this report, please call me on
(202) 512-3504. Major contributors to this report were Robert
Pelletier and Richard McGeary.
Sincerely yours,
Richard Davis
Director, National Security
Analysis
MILITARY PERSONNEL BUDGET
CATEGORIES
=========================================================== Appendix I
These budget categories apply to all services except where
parentheses specify the applicable services. Special pays for
medical-related skills and the cadets/midshipmen category do not
apply to the Marine Corps.
Basic pay
Retired pay accrual
Basic allowances for quarters
with dependents
without dependents
substandard family housing
partial
Variable housing allowance
Subsistence
basic allowance for subsistence
authorized to mess separately
leave rations
rations-in-kind not available
augmentation for separate meals (Army, Navy, Air Force)
subsistence in kind
subsistence in messes
operational rations
augmentation rations/other
Incentive pay, hazardous duty, and aviation career
flying duty pay
aviation career, officers
crew members, enlisted
noncrew members (Army, Air Force)
crew nonrated (Army, Air Force)
AWAC weapons controllers (Air Force)
aviation continuation bonus (Air Force, Marine Corps)
submarine duty (Navy)
parachute jump pay
demolition pay
flight deck duty (Marine Corps)
high altitude, low opening parachute pay (Marine Corps)
other pays (Army, Navy, Air Force)
toxic fuels/live biological (Air Force)
Special pays
physicians
dentists
nurses bonus
diplomate pay for psychologists (Army, Navy)
board certified pay for nonphysician health care providers (Army)
optometrists
veterinarians (Army, Air Force)
biomedical science (Air Force)
nuclear officer incentive pay (Navy)
nuclear accession bonus (Navy)
responsibility pay (Navy)
sea and foreign duty
sea duty
duty at certain places
overseas extension pay
foreign language proficiency pay
diving duty pay
reenlistment bonus
special duty assignment pay
enlistment bonus
hostile fire pay (Army, Air Force)
other special pay (Navy, Marine Corps)
Allowances
uniform/clothing allowances
initial issue
military
civilian
additional allowance
basic maintenance
standard maintenance
supplementary
other (civilian clothing maintenance, inventory prepurchase)
(Army,
Navy)
station allowance overseas
cost of living
housing
temporary lodging
moving-in housing (Air Force)
continental U. S. cost-of-living allowance
family separation allowances
on permanent change of station--no government quarters (Army,
Navy, Air Force)
on permanent change of station--dependents not authorized
afloat (Navy, Marine Corps)
on temporary duty
general and flag officers, personal money allowance
Separation pay
terminal leave pay
lump-sum readjustment pay
donations
severance pay, disability
severance pay, nonpromotion
severance pay, involuntary half (5 percent)
severance pay, involuntary full (10 percent)
severance pay, voluntary separation incentive
severance pay, special separation benefits
severance pay, 15-year retirement
Social security tax payments
government contribution
military service credit
Permanent change of station travel
Other military personnel costs
adoption expenses
apprehension of deserters
death gratuities
unemployment compensation
survivor benefits
education benefits
interest on servicemembers' deposit/savings
allowance for quarters, surviving dependents (Air Force)
Civilian Community Corps (Air Force)
Cadets/Midshipmen
SERVICES' SHARE OF MILITARY
PERSONNEL BUDGET BY CATEGORY AND
PERSONNEL LEVELS, FISCAL YEARS
1990-97
========================================================== Appendix II
(Dollars and personnel in millions;
shares in percent)
Budget
category Service Share Amount Share Amount Share Amount Share Amount Share Amount Share Amount Share Amount Share Amount Change Percent
------------- ---------- ------ ------ ------ ------ ------ ------ ------ ------ -------- ------ -------- ------ -------- ------ -------- ------ -------- -------
Basic pay Army 35.5 $14,83 37.1 $16,05 35.2 $13,97 33.9 $12,32 33.6 $11,53 33.7 $10,99 33.6 $10,51 33.7 $10,25 ($4,583) -30.9
7 7 1 1 9 0 0 4
Navy 26.9 11,259 26.2 11,358 27.7 11,002 28.8 10,470 28.6 9,814 28.0 9,129 27.7 8,655 27.3 8,317 (2,942) -26.1
Air Force 29.2 12,189 28.0 12,127 28.3 11,223 28.2 10,243 28.6 9,822 28.6 9,311 28.6 8,953 28.7 8,732 (3,456) -28.4
Marine 8.4 3,514 8.7 3,761 8.8 3,483 9.1 3,300 9.2 3,175 9.6 3,137 10.1 3,145 10.3 3,139 (375) -10.7
Corps
====================================================================================================================================================================================
Total 100.0 $41,79 100.0 $43,30 100.0 $39,67 100.0 $36,33 100.0 $34,35 100.0 $32,56 100.0 $31,26 100.0 $30,44 ($11,357 -27.2
9 3 8 4 0 7 3 2 )
Retired pay Army 35.6 $6,514 37.1 $6,953 35.2 $5,965 33.9 $4,485 33.6 $4,154 33.8 $3,901 33.6 $3,458 33.7 $3,343 ($3,171) -48.7
accrual
Navy 27.0 4,943 26.3 4,916 27.7 4,690 28.8 3,806 28.6 3,530 28.0 3,238 27.7 2,845 27.3 2,709 (2,234) -45.2
Air Force 29.0 5,317 27.9 5,225 28.3 4,792 28.2 3,728 28.6 3,536 28.6 3,305 28.7 2,946 28.7 2,847 (2,471) -46.5
Marine 8.4 1,542 8.7 1,628 8.8 1,485 9.1 1,199 9.2 1,141 9.6 1,112 10.0 1,033 10.3 1,022 (521) -33.8
Corps
====================================================================================================================================================================================
Total 100.0 $18,31 100.0 $18,72 100.0 $16,93 100.0 $13,21 100.0 $12,36 100.0 $11,55 100.0 $10,28 100.0 $9,920 ($8,397) -45.8
6 2 3 9 0 6 1
Basic Army 33.3 $1,877 35.4 $2,125 31.5 $1,664 31.9 $1,594 30.9 $1,431 32.2 $1,446 32.4 $1,420 32.9 $1,409 ($468) -24.9
allowances
for quarters
Navy 29.5 1,663 28.4 1,704 31.8 1,681 32.2 1,607 32.3 1,495 31.4 1,408 30.8 1,351 30.2 1,292 (371) -22.3
Air Force 29.4 1,660 28.1 1,688 28.7 1,518 28.0 1,399 29.0 1,345 28.4 1,275 28.4 1,247 28.2 1,208 (452) -27.2
Marine 7.8 441 8.1 483 8.0 424 7.8 392 7.9 364 8.1 362 8.4 370 8.7 374 (66) -15.1
Corps
====================================================================================================================================================================================
Total 100.0 $5,641 100.0 $6,001 100.0 $5,288 100.0 $4,992 100.0 $4,635 100.0 $4,491 100.0 $4,388 100.0 $4,284 ($1,357) -24.1
Variable Army 19.8 $264 22.1 $328 20.0 $287 19.9 $273 21.8 $287 22.2 $277 22.4 $268 22.9 $263 ($1) -0.3
housing
allowance
Navy 44.7 596 43.6 648 47.2 677 48.4 662 46.5 610 44.7 558 43.7 523 42.8 491 (105) -17.6
Air Force 23.6 314 22.6 335 21.7 311 20.9 287 21.8 286 23.5 293 23.7 284 23.7 272 (42) -13.4
Marine 12.0 159 11.7 174 11.2 160 10.7 147 9.9 130 9.6 120 10.1 121 10.6 122 (37) -23.5
Corps
====================================================================================================================================================================================
Total 100.0 $1,333 100.0 $1,485 100.0 $1,434 100.0 $1,368 100.0 $1,312 100.0 $1,248 100.0 $1,195 100.0 $1,148 ($185) -13.9
Subsistence Army 36.6 $1,731 33.5 $1,110 34.6 $1,147 33.7 $1,004 34.3 $969 35.1 $947 33.7 $917 35.9 $1,177 ($554) -32.0
Navy 26.0 1,232 25.2 834 25.0 829 25.7 767 25.2 713 24.6 665 23.3 635 26.3 862 (370) -30.0
Air Force 28.4 1,343 34.0 1,127 32.2 1,069 32.2 959 31.9 901 31.4 848 30.4 826 27.1 888 (454) -33.8
Marine 9.0 426 7.2 240 8.2 273 8.5 253 8.6 244 8.9 241 12.6 242 10.8 353 (73) -17.2
Corps
====================================================================================================================================================================================
Total 100.0 $4,732 100.0 $3,311 100.0 $3,318 100.0 $2,982 100.0 $2,828 100.0 $2,700 100.0 $2,619 100.0 $3,280 ($1,452) -30.7
Incentive Army 18.9 $157 19.0 $165 19.5 $153 19.4 $138 19.8 $130 20.9 $124 20.7 $118 20.6 $110 ($47) -30.2
pay,
hazardous,
duty, &
aviation
career
Navy 37.6 313 35.5 307 36.6 287 36.9 263 36.7 241 35.8 212 35.9 205 36.4 194 (119) -38.0
Air Force 38.2 318 40.4 349 38.7 303 38.1 272 38.1 249 37.6 223 37.9 216 37.1 198 (121) -37.9
Marine 5.3 44 5.0 44 5.2 41 5.6 40 5.4 35 5.8 34 5.6 32 5.9 32 (13) -28.9
Corps
====================================================================================================================================================================================
Total 100.0 $833 100.0 $864 100.0 $785 100.0 $713 100.0 $655 100.0 $593 100.0 $570 100.0 $533 ($300) -36.0
Special pay Army 25.5 $472 32.3 $791 22.8 $373 23.3 $355 23.2 $309 25.0 $325 26.3 $345 22.9 $283 ($189) -40.0
Navy 54.4 1,006 45.3 1,111 56.4 925 55.7 849 55.0 732 52.5 682 50.7 664 53.2 656 (351) -34.8
Air Force 14.2 263 14.9 367 16.1 264 16.7 255 18.5 247 19.1 248 19.4 254 20.0 246 (17) -6.6
Marine 5.9 108 7.5 185 4.7 76 4.3 65 3.3 44 3.4 44 3.6 47 3.9 48 (60) -55.8
Corps
====================================================================================================================================================================================
Total 100.0 $1,850 100.0 $2,454 100.0 $1,638 100.0 $1,525 100.0 $1,332 100.0 $1,299 100.0 $1,309 100.0 $1,233 ($617) -33.4
Allowances Army 43.8 $1,014 47.2 $1,345 40.0 $1,007 37.2 $845 35.3 $740 34.6 $778 35.8 $772 35.6 $739 ($275) -27.1
Navy 19.8 459 19.1 546 22.4 564 25.0 568 27.5 577 27.1 608 26.0 561 26.2 543 84 18.3
Air Force 29.2 676 26.5 755 29.9 754 28.8 655 28.2 592 29.2 657 27.8 600 28.2 584 (91) -13.5
Marine 7.1 165 7.2 205 7.7 194 9.0 206 9.0 190 9.2 206 10.3 221 10.0 208 43 25.8
Corps
====================================================================================================================================================================================
Total 100.0 $2,314 100.0 $2,850 100.0 $2,519 100.0 $2,274 100.0 $2,099 100.0 $2,249 100.0 $2,154 100.0 $2,074 ($240) -10.4
Separation Army 41.5 $227 44.0 $335 56.9 $1,586 41.1 $1,084 42.0 $626 30.9 $499 38.7 $479 50.9 $484 $256 112.9
pay
Navy 27.4 150 25.5 194 11.9 331 15.5 407 27.2 405 20.4 329 25.6 317 20.2 192 42 28.0
Air Force 21.8 119 19.4 147 26.3 732 35.5 935 20.9 312 43.0 695 27.4 339 16.2 154 35 29.2
Marine 9.4 52 11.1 84 5.0 139 8.0 210 9.8 146 5.7 92 8.4 104 12.6 120 68 131.8
Corps
====================================================================================================================================================================================
Total 100.0 $548 100.0 $761 100.0 $2,788 100.0 $2,635 100.0 $1,489 100.0 $1,616 100.0 $1,239 100.0 $950 $401 73.2
Social Army 35.6 $1,386 36.7 $1,407 35.1 $1,231 34.1 $1,095 34.0 $1,034 33.8 $957 33.6 $924 33.6 $887 ($500) -36.0
security tax
payments
Navy 26.7 1,038 26.2 1,003 27.5 963 28.4 913 28.2 858 27.8 785 27.4 755 27.2 718 (320) -30.8
Air Force 29.3 1,140 28.4 1,086 28.7 1,006 28.5 915 28.7 872 28.9 816 29.1 800 28.9 763 (377) -33.1
Marine 8.4 327 8.7 333 8.7 307 9.0 289 9.1 278 9.6 271 9.9 273 10.2 269 (59) -17.9
Corps
====================================================================================================================================================================================
Total 100.0 $3,891 100.0 $3,829 100.0 $3,506 100.0 $3,212 100.0 $3,042 100.0 $2,829 100.0 $2,752 100.0 $2,636 ($1,255) -32.2
Permanent Army 40.4 $1,340 35.3 $1,212 43.1 $1,552 39.2 $1,314 37.9 $1,150 39.5 $1,147 39.0 $1,074 38.6 $1,010 ($330) -24.6
change of
station
travel
Navy 21.5 714 22.4 769 20.4 734 21.1 709 23.0 698 22.8 662 21.5 593 22.2 580 (133) -18.7
Air Force 30.9 1,025 36.1 1,239 29.6 1,067 32.8 1,100 31.6 958 29.8 867 31.2 858 30.7 802 (222) -21.7
Marine 7.2 238 6.3 216 6.9 249 6.9 231 7.5 228 7.9 229 8.3 228 8.5 223 (15) -6.4
Corps
====================================================================================================================================================================================
Total 100.0 $3,317 100.0 $3,436 100.0 $3,601 100.0 $3,354 100.0 $3,034 100.0 $2,905 100.0 $2,753 100.0 $2,616 ($701) -21.1
Other Army 47.3 $102 43.5 $137 55.4 $342 52.5 $408 44.4 $249 49.2 $278 44.9 $200 44.5 $203 $101 98.3
military
personnel
costs
Navy 22.9 49 27.2 86 18.9 117 22.5 175 29.1 163 26.0 147 28.8 128 30.6 140 90 182.6
Air Force 21.3 46 18.4 58 16.6 102 17.1 133 15.0 84 16.7 95 15.2 68 14.0 64 18 39.3
Marine 8.5 18 11.0 35 9.1 56 7.9 62 11.5 64 8.1 46 11.0 49 10.8 49 31 169.0
Corps
====================================================================================================================================================================================
Total 100.0 $216 100.0 $316 100.0 $618 100.0 $777 100.0 $560 100.0 $566 100.0 $445 100.0 $456 $240 111.0
Cadets Army 31.9 $43 32.5 $42 32.8 $41 33.2 $39 34.1 $39 33.9 $38 33.3 $36 34.2 $36 ($7) -16.7
Navy 35.8 48 34.7 45 34.0 42 33.5 40 32.8 38 33.4 38 33.5 36 32.7 34 (14) -29.1
Air Force 32.3 44 32.8 43 33.2 41 33.3 39 33.0 38 32.7 37 33.3 36 33.1 35 (9) -20.3
Marine \a \a \a \a \a \a \a \a \a \a \a \a \a \a \a \a \a \a
Corps
====================================================================================================================================================================================
Total 100.0 $135 100.0 $130 100.0 $124 100.0 $118 100.0 $115 100.0 $112 100.0 $107 100.0 $105 ($30) -22.3
Totals by Army 35.3 $29,96 36.6 $32,00 35.7 $29,31 34.0 $24,95 33.4 $22,65 33.5 $21,70 33.5 $20,52 33.8 $20,19 ($9,768) -32.6
service 4 8 9 6 7 7 0 6
Navy 27.6 23,471 26.9 23,522 27.8 22,840 28.9 21,237 29.3 19,874 28.5 18,462 28.2 17,266 28.0 16,728 (6,743) -28.7
Air Force 28.8 24,454 28.1 24,545 28.2 23,184 28.5 20,919 28.4 19,241 28.8 18,669 28.5 17,426 28.1 16,795 (7,660) -31.3
Marine 8.3 7,036 8.4 7,386 8.4 6,888 8.7 6,393 8.9 6,041 9.1 5,894 9.7 5,863 10.0 5,957 (1,078) -15.3
Corps
====================================================================================================================================================================================
Total 100.0 $84,92 100.0 $87,46 100.0 $82,23 100.0 $73,50 100.0 $67,81 100.0 $64,73 100.0 $61,07 100.0 $59,67 ($25,249 -29.7
5 1 1 4 2 2 5 7 )
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars and personnel in millions;
shares in percent)
Personnel Person Person Person Person Person Person Person Person
level Service Share nel Share nel Share nel Share nel Share nel Share nel Share nel Share nel Change Percent
------------- ---------- ------ ------ ------ ------ ------ ------ ------ ------ -------- ------ -------- ------ -------- ------ -------- ------ -------- -------
End strength Army 36.3 0.7506 36.2 0.7254 33.8 0.6113 33.6 0.5724 33.6 0.5413 33.5 0.5086 33.4 0.4950 34.0 0.4950 (0.2556) -34.1
Navy 28.2 0.5829 28.5 0.5713 30.0 0.5419 29.9 0.5100 29.1 0.4687 28.6 0.4346 28.6 0.4245 27.9 0.4069 (0.1760) -30.2
Air Force 26.1 0.5393 25.5 0.5109 26.0 0.4703 26.1 0.4444 26.5 0.4263 26.4 0.4004 26.2 0.3882 26.2 0.3811 (0.1582) -29.3
Marine 9.5 0.1967 9.7 0.1950 10.2 0.1846 10.5 0.1784 10.8 0.1742 11.5 0.1746 11.7 0.1740 11.9 0.1740 (0.0227) -11.5
Corps
====================================================================================================================================================================================
Total 100.0 2.0695 100.0 2.0026 100.0 1.8081 100.0 1.7052 100.0 1.6105 100.0 1.5182 100.0 1.4817 100.0 1.4570 (0.6125) -29.6
Average Army 36.1 0.7536 37.5 0.8037 35.2 0.6746 33.8 0.5923 33.9 0.5619 33.8 0.5285 33.5 0.5027 33.8 0.4958 (0.2578) -34.2
strength
Navy 28.0 0.5840 27.3 0.5840 28.9 0.5528 29.8 0.5220 29.2 0.4851 28.7 0.4491 28.4 0.4267 28.0 0.4110 (0.1730) -29.6
Air Force 26.5 0.5524 25.4 0.5434 25.9 0.4969 26.0 0.4552 26.3 0.4366 26.4 0.4131 26.5 0.3972 26.5 0.3891 (0.1633) -29.6
Marines 9.4 0.1963 9.8 0.2107 10.0 0.1911 10.4 0.1818 10.6 0.1754 11.1 0.1737 11.6 0.1733 11.8 0.1731 (0.0232) -11.8
====================================================================================================================================================================================
Total 100.0 2.0863 100.0 2.1418 100.0 1.9154 100.0 1.7513 100.0 1.6590 100.0 1.5644 100.0 1.4999 100.0 1.4690 (0.6173) -29.6
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Not applicable.
Note: Some columns do not add because of rounding.
*** End of document. ***
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