[Budget of the United States Government, Fiscal Year 1999]
[Page 133-140]
[DOCID: f:1999_bud.bud10.wais]
From the Budget of the U.S., FY 1999 Online via GPO Access

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  There will always be threats to our well-being, to the peaceful community 
of nations to which we belong. Indeed, in the years ahead, we will see more 
and more threats that cross national borders--terrorism, weapons of mass 
destruction proliferating around the world, the growth of organized crime 
and drug trafficking. We will have to find new ways to meet these security 
                                      President Clinton                                                        
                                      November 1997                                                             

  As the world's most powerful fighting force, our Nation's military 
serves as the backbone of U.S. national security strategy, safeguarding 
America's interests, deterring conflict, and securing the peace. 
Maintaining a strong and capable military remains essential to 
protecting our freedoms and ensuring America's global leadership role as 
we approach the 21st Century.
  As the security partner of choice for many countries in all regions of 
the world, America remains the ``indispensable nation'' of the post-Cold 
War era. Consistent with our global responsibilities, the U.S. military 
must deter our adversaries and reassure our friends and allies that 
America is prepared to put force behind the defense of its interests. 
American forces must prevail when committed to combat: they must be 
ready to meet the threat of major theater war; they must be prepared for 
newly emerging threats, such as the proliferation of weapons of mass 
destruction; they must be able to undertake demanding contingency or 
humanitarian operations; and they must be supported by a modern defense 
infrastructure that utilizes efficient management and business 
  This Nation has built, and the Administration continues to support, a 
military second to none. But while the United States remains the only 
nation with the combat, logistical, mobility, intelligence, and 
communications capabilities to conduct effective military operations 
worldwide, we must continue to prepare for tomorrow's challenges. The 
Department of Defense (DOD) recently completed the Quadrennial Defense 
Review (QDR), a strategic plan to ensure that our forces remain capable 
of executing the full range of global military operations into the next 
century. Consistent with the QDR, the defense program embraces three key 
<bullet>  Shaping the international environment: Along with diplomacy 
          and economic initiatives, the U.S. military plays an essential 
          role in shaping the international security environment. U.S. 
          forces are involved in a wide variety of activities that 
          bolster our own national security and the security of others. 
          Such activities include overseas deployments and programs that 
          reduce or eliminate the nuclear, biological, and chemical 
          capabilities of other countries. These important efforts, 
          which the budget supports, make it less likely that our 
          military will be committed to combat.
<bullet>  Responding to the full spectrum of crises: Despite U.S. 
          efforts to prevent conflict, our forces at times must respond 
          to crises in order to protect our national interests, 
          demonstrate U.S. resolve, and reaffirm the Nation's role as 
          global leader. As Chart 10-1 shows, U.S. forces must be able 
          to address the full spectrum of possible military crises, 
          including smaller-scale contingency missions, counterterrorism 
          operations, and major theater wars.
<bullet>  Preparing now for an uncertain future: While maintaining the 
          capability to confront today's dangers, we must continue to 
          transform our military to meet

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  The budget fully supports the recommendations of both the QDR and of 
DOD's recently released Defense Reform Initiative (DRI), a plan to 
achieve a leaner, more efficient, and more cost-effective organization 
through improved management and business practices. To implement these 
business improvements, DOD will submit legislation to Congress in 
conjunction with the budget--including legislation for two more rounds 
of base closures and realignments, in 2001 and 2005. In a constrained 
fiscal environment, retooling DOD to achieve greater efficiencies will 
save funds that can go to modernize U.S. military forces (see Table 10-

Providing the Necessary Funding

  For DOD, the budget proposes discretionary funding of $258.4 billion 
in budget authority and $253.9 billion in outlays for 1999. The budget 
continues the Administration's plan, as reaffirmed by the QDR, of 
completing the careful resizing of U.S. military forces, fully 
supporting military readiness, enhancing quality of life programs, and 
increasing funding to modernize our forces as new technologies become 
available after the turn of the century. Over this period, the budget 
reflects savings from lower estimates of inflation, which will go to 
finance increases in counterproliferation, counterterrorism and counter-
drug programs, and new weapons procurement.

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                   Table 10-1.  MILITARY FORCE TRENDS                   
                                  Cold War                              
                                   (1990)         1999       2003 Target
  Divisions (active/National                                            
   Guard).....................        18/10     10 \1\/ 8               
                                                      \2\     10 \1\/ 8 
Air Force:                                                              
   Fighter wings (active/                                               
   reserve)...................        24/12        12+/7+         12+/8 
   Aircraft carriers (active/                                           
   training)..................         15/1          11/1          11/1 
   Air wings (active/reserve).         13/2          10/1          10/1 
   Total battle force ships                                             
   \3\........................          546           314           306 
Marine Corps:                                                           
   Divisions (active/reserve).          3/1           3/1           3/1 
   Wings (active/reserve).....          3/1           3/1           3/1 
Strategic nuclear forces:                                               
   Intercontinental ballistic                                           
   missiles/warheads..........  1,000/2,450     550/2,000   500/500 \4\ 
   Ballistic missile                                                    
   submarines.................           31            18        14 \4\ 
   Sea-launched ballistic                                               
   missiles/warheads..........    568/4,864     432/3,456   336/not over
                                                              1,750 \4\ 
   Heavy bombers..............          324        89 \5\        92 \5\ 
Military personnel:                                                     
   Active.....................    2,069,000     1,395,800     1,365,500 
   Selected reserve...........    1,128,000       877,100       837,100 
\1\ Plus two armored cavalry regiments.                                 
\2\ Plus 18 separate brigades (15 of which are at enhanced readiness    
\3\ Includes active and reserve ships of the following types: aircraft  
  carriers, surface combatants, submarines, amphibious warfare, ships,  
  mine warfare ships, and combat logistics force and other support      
\4\ Upon entry-into-force of START II.                                  
\5\ Does not include 95 B-1 bombers dedicated to conventional missions. 


Preparing Military Forces in the Post-Cold War Era

  Providing Humanitarian and Disaster Assistance: Given its global 
presence and unique capabilities, America's military is often asked to 
respond to international disasters and human tragedies. Such responses 
may come at the direction of U.S. commanders, who can respond quickly to 
regional problems, or at the President's direction when he determines 
that DOD is the appropriate agency to provide U.S. support. The proposed 
$63 million for the Overseas Humanitarian, Disaster, and Civic Aid 
account, an increase of $16 million over the 1998 level, will allow DOD 
to provide critical humanitarian and disaster assistance to support U.S. 
interests without cutting into the resources available for readiness. Of 
the $63 million, $34 million will support the President's initiative to 
expand the U.S. Humanitarian Demining Program.
  Executing Counter-drug Programs: DOD participates fully in the 
President's National Drug Control Strategy, designed to stem the flow of 
illegal drugs into the country and reduce demand. DOD fulfills its 
primary missions--to eliminate foreign and domestic drug supply sources 
and prevent drugs from entering the country--by detecting and monitoring 
ships and aircraft moving drugs to the United States, supporting 
domestic and foreign law enforcement, collecting and analyzing foreign 
intelligence, and supporting the activities of the National Guard under 
State counter-drug programs. DOD continues to fight illegal drug use in 
the military through prevention, education, and testing. The budget 
proposes $883 million for DOD's counter-drug efforts.

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  Shaping the Environment Through Arms Control and Cooperative Threat 
Reduction: The Cooperative Threat Reduction Program (also called the 
Nunn-Lugar Program) helps build a safer world by dismantling nuclear 
forces, securing nuclear weapons and materials, and destroying chemical 
weapons in the former Soviet Union. The budget proposes $442 million to 
continue this vital program. The President also remains strongly 
committed to reducing the threat from weapons of mass destruction 
through existing or anticipated arms control agreements. Over the past 
five years, the Administration has worked hard to implement the START I 
treaty; bring the START II treaty into force; oversee the ratification 
of, and begin to implement, the Chemical Weapons Convention; 
indefinitely and unconditionally extend the Nuclear Nonproliferation 
Treaty; and obtain the signing of the Comprehensive Test Ban Treaty 
(CTBT). The START II treaty awaits Russia's approval, after which the 
President plans to seek a subsequent agreement to further reduce warhead 
  Ensuring Successful Contingency Operations: U.S. forces have provided 
leadership in contingency operations that support our interests. As in 
previous years, the budget proposes funding for ongoing contingency 
operations in Southwest Asia in the Overseas Contingency Operations 
Transfer Fund; for 1999, the budget proposes $747 million to fund the 
Southwest Asia operations. Congressional approval would allow DOD to 
avoid redirecting funds from operations and maintenance programs to 
contingency operations, thereby helping to maintain the readiness of our 
  While the President has announced his intention that United States 
forces participate in a NATO follow-on force in Bosnia, starting in July 
1998, NATO has not yet finalized the exact structure required for the 
force. Consequently, DOD has not been able to determine the specific 
American contribution to that force. Once NATO makes these force 
structure decisions, the Administration will send Congress a 
supplemental funding request to cover the additional costs, as 
prescribed by the 1998 National Defense Authorization and DOD 
Appropriations Acts.

  Countering the Proliferation of, and Defending Against, Weapons of 
Mass Destruction: The President remains committed to developing 
capabilities to locate and neutralize nuclear, biological, and chemical 
weapons before they can be used, and to protect U.S. troops against 
their effects. The budget proposes over $800 million for the effort. 
High-priority activities include gaining the means to identify and 
destroy underground production and storage sites, refining methods to 
detect and track weapons shipments, and improving the means to detect 
and identify biological warfare agents. In response to the emerging 
terrorist threat of chemical or biological attacks on American cities, 
the budget also funds improvements to domestic preparedness and response 
  Protecting our Forces and Combating Terrorism: The protection of U.S. 
service members, deployed or at home, against the threat of terrorism is 
a fundamental task. The budget proposes $3.9 billion to fully fund DOD's 
programs to combat terrorism, including routine force protection. The 
resources will improve our preparedness to respond to a terrorist attack 
that employs weapons of mass destruction, and enable DOD to continue a 
comprehensive vulnerability assessment program to identify additional 
force protection needs.
  Developing Technologies to Defend Against Strategic Ballistic 
Missiles: The budget proposes $963 million to continue developing a 
national missile defense to protect the United States from a limited 
ballistic missile attack. This contingency capability will allow DOD to 
deploy an effective system rapidly if a threat should emerge sooner than 
U.S. intelligence now estimates.
  Developing and Deploying Defenses Against Theater Ballistic Missiles: 
The budget proposes over $2.4 billion to develop and deploy systems to 
defend against missiles that directly threaten U.S. and allied forces 
deployed to specific theaters. While the funding is primarily for 
research and development of advanced systems to meet future threats, it 
includes $343 million to procure an advanced version of the Patriot 
missile and $43 million for the Navy's Area Theater Missile

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Defense System that can be deployed immediately.
  Maintaining the Nation's Nuclear Deterrent: Although funding for 
nuclear forces is at its lowest level in over 30 years, these forces 
remain an essential component of our military capability. Within treaty-
imposed limits, their primary mission is to deter nuclear attack against 
the United States and its allies, and to convince potential adversaries 
that they will never gain a nuclear advantage against our Nation.
  The budget proposes $4.5 billion for the Department of Energy (DOE) to 
maintain confidence in the safety, reliability, and performance of the 
nuclear weapons stockpile. DOE will perform this mission without 
underground nuclear testing to comply with the proposed CTBT. To make up 
for the loss of testing, DOE plans to build new non-nuclear test 
facilities while upgrading the computer models it uses to predict the 
performance of nuclear weapons. The budget includes: $284 million to 
continue construction of the National Ignition Facility at the Lawrence 
Livermore National Laboratory; $518 million, $140 million more than in 
1998, for the Advanced Strategic Computing Initiative; and $157 million 
for a new source of tritium for nuclear weapons.

Modernizing Our Military Forces

  Addressing the Modernization Imperative: Modernizing weapons systems 
is critical to the future readiness of U.S. military forces. In the 
1970s and 1980s, the Nation invested heavily in a wide range of 
equipment--including fighter aircraft, attack submarines, surface ships, 
attack helicopters, and armored vehicles--enabling us to reduce weapons 
purchases, and total defense spending, in the early 1990s as we cut the 
size of U.S. forces after the Cold War. But the equipment bought in the 
prior two decades, the backbone of today's forces, is aging and must be 
replaced. When complex military equipment ages, it becomes costlier and 
more difficult to maintain and operate. More importantly, the decisive 
military advantage that new, superior equipment provides will help 
reduce casualties and may permit a quick, successful resolution of 
conflict. For these reasons, weapons system modernization continues to 
be a high Administration priority.
  The QDR determined that the Nation needs roughly $60 billion a year in 
weapons procurement funding, beginning in 2001, to modernize U.S. 
forces. The budget provides $48.7 billion for the 1999 procurement 
program, $3.9 billion more than the 1998 level, and achieves the $60 
billion goal by 2001. In addition, the budget funds basic and applied 
research and development of advanced technologies that will lay the 
groundwork for procuring next-generation systems and that are vital to 
the Nation's engineering, mathematics, and computer science efforts.

  Modernizing Ground Forces: In the near term, Army modernization 
emphasizes digitization of battlefield systems (discussed later in this 
chapter) and upgrades to existing combat equipment so that our ground 
forces will have a clear advantage over potential opponents. The Army 
will extend the useful life and improve battlefield performance of 
primary combat systems, such as the Abrams tank, the Bradley Fighting 
Vehicle and the Apache Longbow helicopter, by integrating new navigation 
and data transfer technology, improving weapons and targeting systems, 
and increasing vehicle protection systems.
  The centerpiece of the Marine Corps modernization program is the V-22 
tilt-rotor aircraft that will replace the CH-46 and CH-53A/D helicopters 
now used to transport troops and equipment. The V-22's increased range, 
payload, and speed will significantly enhance Marine Corps tactical 
  A sometimes overlooked, but no less important, part of ground force 
modernization is the replacement of aging combat support systems such as 
trucks. The Army is replacing its fleet of medium trucks by procuring 
new models, while the Marines have undertaken a truck remanufacturing 
  In the long term, ground force research and development programs aim 
to take advantage of leaps in technology to enhance mission-essential 
equipment. Critical programs, which will lead to procurement in the 
middle of the next decade, include the Army's Comanche helicopter for 
armed reconnaissance, the Crusader self-propelled artillery howitzer, 

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the Marines' Advanced Amphibious Assault Vehicle.

  Modernizing Naval Forces: The budget continues procurement of several 
ship classes, including three DDG-51 Aegis destroyers, a New Attack 
Submarine, and an LPD-17 Amphibious Transport Dock Ship. The Navy budget 
continues advance funding for the major refueling overhaul of the second 
Nimitz-class nuclear aircraft carrier to enable the ship to stay in 
service another 25 years. The Navy also will procure long-lead material 
to construct the last Nimitz-class nuclear aircraft carrier. In 
addition, the Navy is undertaking long-term development efforts to 
design next generation destroyers and carriers, to be procured in the 
middle of the next decade. Both of these new ship classes will operate 
at lower costs and will be more capable than their predecessors by 
taking advantage of innovative technologies.
  Along with new ships, the Navy will continue to develop and procure 
highly-capable weapons for a number of missions. For defense against 
missiles and aircraft, the budget continues procurement of Standard 
Missiles. It also continues procurement of Tomahawk cruise missiles for 
use against land targets. The budget supports investments in the Ship 
Self-Defense System to provide close anti-air defense for surface ships, 
and in gun and missile technologies to improve the Navy's delivery of 
fire support for marines and soldiers ashore.

  Modernizing Air Forces: For the United States to maintain its ability 
to dominate battles in the next century, substantial investment in new 
tactical combat aircraft is necessary. The budget supports three new 
aircraft programs. First, it continues low rate production of the F/A-
18E/F Super Hornet, which will become the Navy's principal fighter/
attack aircraft in the next decade. Second, the procurement of the first 
two F-22 Raptors, the Air Force's new air superiority fighter, will 
begin in 1999. Full-rate production of the F-22 should come early in the 
next century. Third, research and development into new materials and 
manufacturing processes for the Joint Strike Fighter (JSF) will 
continue. The JSF is DOD's largest, most ambitious tactical aircraft 
program and is designed to produce a family of aircraft for the Air 
Force, Navy, and Marine Corps. It is scheduled to start replacing  about 
 3,000  aging  aircraft (F-16s, F/A-18C/Ds and AV-8Bs) in 2005.
  The budget also funds a major effort to improve the weapons carried by 
combat aircraft. Joint missile procurement programs include the Advanced 
Medium Range Air-to-Air Missile and the Joint Standoff Weapon. 
Procurement continues for the Joint Direct Attack Munition--an 
inexpensive guidance kit, which transforms unguided bombs into precision 
guided munitions. In addition, the Navy's program to upgrade existing 
Harpoon missiles into Standoff Land Attack Missiles Expanded Response 
continues in 1999. The budget also funds research and development into 
various munitions programs of the future, such as the AIM-9X Sidewinder 
missile for short range air-to-air combat, and the Joint Air-to-Surface 
Standoff Missile.
  To help ensure continued access to space, DOD plans to develop the 
Evolved Expendable Launch Vehicle program with industry, enhancing U.S. 
competitiveness in the space launch market and providing DOD with more 
efficient, economical access to space.

  Establishing Information Dominance: America's preeminence in using 
information on the battlefield has helped us establish the world's 
strongest military. The commander who can better observe and analyze the 
battle while disseminating highly accurate information to his forces has 
a powerful advantage over the adversary. Joint Vision 2010, DOD's vision 
for the future, focuses on the continued development of command, 
control, communications, computers, intelligence, surveillance, and 
reconnaissance capabilities. This effort will enhance the accuracy of 
weapons and allow for the more effective use of forces. The Army plans 
to ``digitize'' a division by the year 2000--that is, equip it so that 
accurate, timely information about the battle can be transferred rapidly 
between U.S. forces. The budget includes funding for Navy and Air Force 
automated command and control systems and land and space-based 
communications networks. It also includes funds for battlefield 
surveillance assets, such as unmanned aerial vehicles, and navigation 
systems, like the Global Positioning System for all military 
departments. The

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budget provides funds to purchase national sensors (e.g., satellites) to 
help our leaders better anticipate, monitor, and respond to crises. 
These assets will play a key role in both military operations and 
national security decision-making, and will enable commanders to more 
effectively direct the battle and respond to threats.
  Supporting the President's Initiatives on Landmines: To implement the 
policy that the President outlined last September, DOD is accelerating 
its research and development on demining technology and on alternatives 
to anti-personnel landmines. The budget proposes $40 million for these 

Maintaining Military Readiness

  Ensuring Adequate Resources for Readiness: Maintaining high levels of 
readiness is our top defense priority. To allow U.S. forces to 
accomplish a wide range of missions, the budget provides full funding 
for key operations and support programs, including unit training 
activities, recruiting and retention programs, joint exercises, and 
equipment maintenance. In addition, DOD continues to monitor its current 
and future military readiness through the Senior Readiness Oversight 
Council and the Joint Monthly Readiness Review process. These efforts 
enhance the Department's ability to ensure that critical readiness 
programs receive sufficient resources and that our forces remain 
prepared to accomplish their missions and achieve our Nation's military 
  Enhancing the Quality of Life of Military Personnel: The 
Administration is strongly committed to strengthening the quality of 
life of military personnel, which is important for retaining and 
recruiting high-quality personnel. The budget proposes a 3.1 percent pay 
raise, effective January 1999, to help ensure that military compensation 
remains competitive with private sector wages. The budget includes 
substantial funding to improve the quality of health care, military 
housing, and child care programs. Enhancements to family support 
programs can help reduce the stresses associated with military life, 
such as frequent family separations. The budget also increases funding 
for improving educational activities for military and eligible civilian 
dependents, including the construction and maintenance of schools and 
support for the President's School Technology Initiative, which has the 
long-range goal of putting one computer in every classroom for every 
four students and one for every teacher.

Managing Our Defense Resources More Efficiently

  Implementing Management and Business Practice Reform: Under the DRI 
and other efforts, DOD continues to implement improvements to its 
management and business practices, including increased privatization and 
outsourcing of support functions, personnel reductions associated with 
infrastructure and support activities, greater use of electronic 
commerce, and expanded use of government purchase cards. A new inter-
agency working group will help to identify and eliminate impediments to 
business practice reform.
  Outsourcing and Privatizing: DOD has begun to implement an aggressive 
outsourcing and privatization program for its infrastructure and support 
activities, including base utility services, general base operations, 
family housing, logistics support, training, property maintenance, and 
distribution depots. These efforts will save an estimated $6.4 billion 
over the next five years and improve support for U.S. troops.
  Eliminating Excess Infrastructure: DOD has facilities that it no 
longer needs because infrastructure reductions have lagged behind force 
reductions. Excess facilities drain resources that could otherwise go to 
modernization, readiness, and quality of life. To address the problem, 
DOD will send legislation to Congress to seek two more rounds of base 
closures and realignments, in 2001 and 2005.
  Improving Financial Management: The Administration remains committed 
to reforming DOD's financial management activities and systems, and has 
developed a comprehensive strategy to do so. The Administration has 
identified shortcomings in such areas as contractor overpayments, fraud 
detection and controls, and standardized finance and accounting systems. 
The Department is taking significant steps to improve the integrity of 
its financial practices. For example, DOD has cut the category known as 
problem disbursements from a total of $34.3 billion in June 1993 to $9.2

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billion in June 1997. Such steps will provide managers with more 
accurate and timely financial information.
  Streamlining the Civilian Work Force: Since 1993, DOD has cut its work 
force by nearly 22 percent, or about 201,000 positions, and it will 
continue to streamline its civilian work force while maintaining 
quality. As the QDR and DRI recommended, DOD plans to implement further 
reductions of 97,000 full-time-equivalent civilian positions. During 
this drawdown, DOD will provide transition assistance for affected 
  Implementing the Information Technology Management Reform Act (ITMRA): 
Also known as the Clinger-Cohen Act, the ITMRA is designed to help 
agencies improve mission performance by effectively using information 
technology. One example is the Global Command and Control System, which 
supports U.S. forces by improving their ability to process and transfer 
critical military information quickly and accurately. The Secretary of 
Defense has established a DOD Chief Information Officer Council to 
manage DOD's annual $11 billion information technology budget and 
provide advice on ITMRA-related issues. In addition, DOD is continuing 
to restructure its work processes while applying modern technologies to 
maximize the performance of information systems, achieve a significant 
return on investments, cut costs, and produce measurable results.