02 February 2004
Defense Comptroller Says Budget Decisions Driven By War on Terrorism
Services aim to manage the high demand on forces,
By Jacqui Porth
Washington File Security Affairs Writer
Washington -- Under Secretary of Defense Dov Zakheim says the
new $401.7 billion defense budget reflects the fact that "we are
still in a war on terrorism."
Speaking to reporters at the Pentagon February 2 as he unveiled
the parameters of the new budget for fiscal year 2005, Zakheim
said considerable thought has been given to managing the continued
high demand on U.S. forces and equipment by the war on terrorism.
The new budget -- for the year beginning October 1 -- calls for
a seven percent increase in spending over the current fiscal year.
Zakheim, the Pentagon's comptroller, pointed out that the account
for military personnel has increased significantly, from $97.9
billion in fiscal 2004 to $104.8 billion in 2005, with continued
growth projections through fiscal year 2009. He said doing right
by service personnel is a major theme of the budget, and providing
force protection is a matter of extreme urgency. The budget calls
for a 3.5 percent pay raise for the military and the official said
recruitment and retention remain "very good."
Funding for operations and maintenance costs are up from $127.6
billion in 2004 to $140.6 in 2005 and they, too, are projected
to grow toward the end of the decade. Spending on research, development,
testing and evaluation is another growth area: climbing from $64.3
billion last year to $68.9 billion this year and climbing until
Besides prosecuting the war on terrorism and managing demand,
the proposed budget also looks to improve and integrate intelligence
capabilities. While actual figures are not available, Zakheim spoke
from a chart indicating funding increases would be used to improve
worldwide human intelligence collection and develop and use promising
Another theme of the 2005 budget is a continued emphasis on transforming
military capabilities to meet more contemporary world threats.
This means funding for cruise missiles, unmanned vehicles, advanced
ships, heavier armored HUMVEES (High Mobility Multipurpose Wheeled
Vehicles), a laser satellite system, a joint tactical radio program,
and legislative authority to transfer funds within the budget to
help other nations fight terrorism.
The military services are all seeking increases to fund procurement
and R&D. The Army has a budget of $95.4 billion in 2004 and now
wants $97.2 billion for 2005, an increase of $1.8 billion. The
Navy and Marine Corps had a $115.1 billion budget in 2004 and is
looking for $119.3 billion in 2005, a $4.2 billion increase. The
Air Force had a 2004 budget of $110.9 billion and is seeking $120.5
billion in 2005, a $9.6 percent increase. Even the non-service
Department-wide budget is looking to grow from $53.9 billion in
2004 to $64.7 billion in 2005, a $10.8 billion increase.
The Navy is focusing on shipbuilding as it plans to take delivery
of three Arleigh Burke destroyers, one Seawolf-class submarine,
one Los Angeles Fast Attack Submarine and four Spruance-class destroyers
in 2005. The five year projection for Navy ships is 290 in 2005,
290 in 2006, 298 in 2007, 303 in 2008, and 309 in 2009.
Zakheim particularly praised the military Commanders Emergency
Response Program (CERP) that helps fund urgent humanitarian and
reconstruction requirements in Iraq and Afghanistan as the "single,
most successful program in Iraq today." Using money seized from
former Iraqi regime elements and congressionally approved transfers,
he said it funds health and educations programs, promotes irrigation
and food distribution and fixes broken electrical grids -- all
in an effort to eliminate the middle man and fix problems swiftly.
In a January 30 background briefing on this subject, a senior
defense official said neighborhood projects in Iraq such as sanitation
are effective in winning friends and easing friction for coalition
forces. If clean up efforts are not prompt, he warned, people are
likely to switch sides and allegiances. Asked about a role for
the Agency for International Development, the official said AID
tends to focus on larger, more time-consuming projects but often
doesn't have the ability to move fast enough in ways that the military
The 2005 budget provides for continued development of a multi-tiered
defense against intercontinental ballistic missiles. The Missile
Defense Agency (MDA) is asking for $9.2 billion this year, up from
$7.7 billion last year. MDA's budget submission indicates that
international participation has become a major priority for the
An MDA release says "we will strive to structure our programs
to promote cooperation and ... seek to take advantage of allies'
capabilities to enhance the BMDS (Ballistic Missile Defense System)." It
also says that investments will sustain cooperative R&D programs
with Israel by continuing support for the Arrow anti-missile program
and for Japan's work to improve the Standard Missile 3. There are
plans to upgrade the early warning radar at Fylingdales in the
United Kingdom and to investigate other unnamed British R&D projects.
MDA is also looking for international cooperation for the Kinetic
Energy Interceptor and is awaiting the conclusions of a NATO Feasibility
Study on missile defense.
MDA also announced plans to terminate the Russian-American Observation
Satellite (RAMOS) program with the 2005 budget. While still expressing
interest in cooperative efforts with the Russian Federation, the
MDA suggested the money (around $550 million) could be better spent
on missile defense cooperation projects with Russia.
Some of the other highlights of the defense budget request include:
-- increased spending for maritime prepositioning;
-- added R&D money for defenses against MANPADS (Man-Portable Air
-- increased money for the Chemical and Biological Defense Program;
-- new money to explore anti-personnel landmine alternatives and
to fund humanitarian demining;
-- more funds for handheld standoff minefield detection and explosive
ordnance disposal equipment;
-- increased funding for international headquarters and agencies,
including R&D money for NATO;
-- additional money for technologies to defend against weapons
of mass destruction;
-- more money for global command, control, communications and intelligence
and early warning;
-- more funds for servicewide arms control activities;
-- a bigger budget for the Defense Threat Reduction Agency;
-- more money for the National Defense University;
-- a larger request for the Special Operations Command; and
-- greater appropriations for overseas contingency operations.
On the procurement side more money is being sought for:
-- 1,026 Guided Multiple Launch Rocket Systems (up from 786);
-- 37 High Mobility Artillery Rocket Systems (HIMARS) (up from
-- another Virginia-class submarine;
-- 97 lightweight towed 155mm howitzers for the Navy (up from 60);
-- two more F-22 Raptor combat aircraft;
-- three more C-17A tactical airlift aircraft;
-- many more Joint Direct Attack Munitions (from 20,244 to 23,137).
Spending on equipment associated with psychological operations
has declined to $18.4 million from a recent peak last year of $33.2
Slides associated with the annual defense budget briefing may
be viewed on the Web at http://www.defenselink.mil/news/Feb2004/g040202-D-6570C.html
All slides in a single PDF file. (.pdf 380 KB)