Defense Budget Composition and Internal Pressures Cindy Williams 1
Overview of Talk Composition of the Department of Defense budget By appropriation title By major force program By military department Internal pressures on future budgets for national defense Rising costs of personnel and of operation and maintenance (O&M) Rising costs of equipment Over-programming in the current defense plan 2
National Defense Budget Budget Authority in Billions of Current Dollars Budget Function FY 10 FY 11 request 051 Department of Defense non-war war 534 163 553 159 053 DOE Atomic Energy 18 19 054 Other Departments Defense-Related 7 8 050 Total National Defense 722 739 3
DOD FY 2011 Budget Request by Appropriation Title (Excludes FY 2011 War Costs) Current Dollars in Billions TOA BA Outlays Military Personnel 139 144 144 Operation & Maintenance 200 201 227 Procurement 113 113 131 RDT&E 76 76 78 Military Construction 17 17 23 Family Housing 2 2 3 Revolving & Mgt Funds 2 2 3 Trust & Other -2-2 Total 549 553 602 4
DoD Base Budgets FY 2010 and FY 2011 250 200 Current Dollars (Billions) 150 100 50 FY 2010 FY 2011 0 Mil Pers O&M Procurement RDT&E Mil Con Other Appropriation Title 5
Figure 2. DoD Total Budgets FY 2010 and FY 2011 350 300 Current Dollars (Billions) 250 200 150 100 FY 2010 FY 2011 50 0 Military Personnel O&M Procurement RDT&E Military Housing & Other Construction Appropriation Title 6
U.S. Outlays for National Defense (Billions of Constant FY 2011 Dollars) 1000 900 800 700 600 500 400 300 200 100 0 1940 1950 1960 1970 1980 1990 2000 2010 Fiscal Year 7
DoD Budget Authority by Appropriation FY 2010, Excludes Wars Other 1% Mil Con 4% RDT&E 15% Procurement 20% Mil Pers 25% O&M 35% 8
DOD BA by Title 100% 80% 60% 40% Mil Con/ Housing RDT&E Procurement O&M Mil Pers 20% 0% 1950 1960 1970 1980 1990 2000 2010 9
DOD budget by program FY 2011 TOA Billions of Dollars Strategic Forces 11 General Purpose Forces 214 C3, Intelligence, and Space 84 Mobility Forces 13 Guard and Reserve Forces 41 Research and Development 48 Central Supply and Management 24 Training, Medical and Other 84 Administration & Associated 17 Support of Other Nations 2 Special Operations Forces 10 Total 549 C3: Command, Control, and Communications 10
DoD Budget Authority by Service FY 2010 Budget Request, Excludes Wars Defense-wide 18% Army 26% AF 27% Navy 29% 11
Component Shares of DoD Base Budget 100% 80% 60% 40% Defense-w ide Air Force Navy Army 20% 0% FY 1980 FY 2000 FY 2010 FY 2011 12
Defense Department Budget Authority by Department 100% Def-Wide 80% Air Air Force Force 60% 40% Navy Navy 20% Army 0% 1965 1975 1985 1995 2005 13
Military department shares of the budget that goes to the services (percent) Cold war average share (1965 to 1989) Non-war 2010 share Army 30 32 Navy 35 35 Air Force 35 33 14
Defense faces cost pressure from the inside Future costs of wars Military & civilian pay raises above inflation Rising costs of health care for military and civilian employees Rising costs of weapon systems Rising operating & maintenance costs 15
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Defense faces cost pressure from the inside (continued) CBO says DOD would need $40 billion more on average between now and 2028, to maintain the planned force structure and purchase planned systems, but In real terms, Obama non-war budget plan for FY 2011-2015 adds just 2 percent in FY 2011 over FY 2010 and about 1 percent annually after that. 17
President s Plan for DOD Discretionary Budget Authority, Current $ Billions Fiscal Year Non-war War Total 2009 513 146 667 2010 531 163 693 2011 549 159 708 2012 566 50 616 2013 582 50 632 2014 598 50 648 2015 616 50 666 Source: President s budget of February 2010 18
What do the fiscal pressures portend for the US military? Obama plan for FY 2011 Cancellation of systems with weak performance or big cost and schedule overruns Stretch-outs of equipment modernization programs Secretary Gates s recent initiatives Later Close Joint Forces Command Reduce the number of Generals and Admirals Other efficiency cuts Belt-tightening concurrent with drawdown of forces in Afghanistan? Likely reductions in size of force Cancellation or stretch-outs of more systems in development Changes in allocation of budgets among the services? 19
MIT OpenCourseWare http://ocw.mit.edu 17.953 U.S. Budgets for National Security Fall 2010 For information about citing these materials or our Terms of Use, visit: http://ocw.mit.edu/terms.