March 16, 2017 0 Purpose • Provide a summary of what is included in the $30 billion March request for additional appropriations (Dollars in Billions) – Base budget request $+24.9 – Overseas Contingency Operations (OCO) budget request +5.1 – Total budget request $+30.0 • Request the Congress pass a full year Defense Appropriations bill that includes this request for additional appropriations • Under a CR, – There is a tremendous mismatch of appropriations compared to the request - not enough operating funds, too much procurement funds – Inability to increase rate productions hampers planned programs; may result in increased unit costs – No new start restrictions affect planned deliveries of equipment to the warfighter – DoD could be limited in its ability to counter the Islamic State of Iraq and Syria (ISIS) 1 What the FY 2017 Additional Request Does • Execute the President’s direction to: – Conduct a 30-day Readiness Review – Develop a Military Readiness request for additional resources based on the results of the review – Develop a plan to accelerate the campaign to defeat ISIS and other worldwide violent extremists organizations • Require additional funding to: – Improve near-term readiness (i.e., maintenance, spare parts, training time, peacetime flying hours, munitions, etc.) – Fund “must pay” bills (e.g., pay raise increase to 2.1%, denied healthcare reforms, storm damage to military facilities, NDAA added end strength) – Avoid 4th quarter reprogramming actions especially in the operating accounts – Invest in items to begin improving mid-term and long-term readiness 2 DoD Funding from 9/11 Through FY 2018 Request March Request for FY 2017 (Discretionary Budget Authority) Base = $+25B OCO = +5B $800 Total = $+30B $700 691 687 666 666 645 639 619 601 163 65 $600 153 159 578 581 560 580 589 70 187 115 534 59 65 82 85 63 169 $500 479 468 124 437 79 $400 73 91 345 316 17 $300 29 $200 287 328 365 377 400 411 431 479 513 528 528 530 495 496 497 522 524 549 574 $100 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY17 FY18 ReqOuest AmTend T DoD Topline, FY 2001 – FY 2018 Numbers may not add due to rounding (Current Dollars in Billions) Base Budget OCO/Other Budget Note: FY 2017 reflects enacted funding provided in division A of P.L. 114-223 for the Military Constructions Bill appropriations and division B of P.L. 114-254 (Security Assistance Appropriations Act, 2017) for the Defense Bill appropriations 3 The Defense Budget Picture Today (Base Budget Dollars in Billions) $610 FY 2018 PB FY 2017 = $549B $590 FY 2018 = $574B $570 $550 B 2 5 + $ $530 PB 2017 $510 $490 Enacted/Current Law $470 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY 2013 PB Enacted/Current Law FY 2018 PB FY 2017 PB 4 Changes to Original FY17 Base Budget Request by Title +4.8% Changes to Feb 2016 Budget Request Military Construction/Family $+24.9B Housing* $+0.2B +3.5% ) s n RDT&E o i ll $+2.0B i B +2.9% n i $524 $549 Procurement s r $+13.5B a O&M/WCF l l o +13.0% D $+8.2B ( +3.9% Military Personnel FFFYYY100777* FY17 $+1.0B +0.7% Request Request for Additional Appropriations *Reflects enacted division A of P.L. 114-223 except it excludes $307.663 million of prior year rescissions 5 Summary of Services’ Readiness Improvements • Army: – Funds additional home station training and depot maintenance to ensure future deploying forces are properly trained and equipped. – Supports increases in rotational exercises in Korea and defensive cyber operations • Navy: – Fills critical shortfalls in ship maintenance to reduce backlogs and funds increased ship operations – Supports additional spare parts and maintenance to improve aircraft reliability and increased flying hours to support tactical training – Enhances shore readiness by ensuring security forces provide the necessary security environment to protect the military and their families • Marine Corps: – Funds critical gaps in combat power through additional counter-UAS capabilities, precision fires, and additional exercises and training – Increases investments to sustain and modernize Marine Corps aircraft inventory • Air Force: – Expands capacity to fill critical gaps in maintenance; aircrew; Intelligence, Surveillance, and Reconnaissance (ISR); cyber, and Battlefield Airmen – Supports increases in pilot production, weapon system sustainment, and cyber and command communications • USSOCOM: – Supports participation in expanded training events and modernization of additional intelligence, targeting, and strike enablers – Increases ISR, maintenance, and C4I support to deployed and deploying; supports operational enhancements and procures critical platform shortfalls Services focused on improving near-term readiness and sustaining it 6 Military End Strength FY 2017 PB Request vs. FY 2017 Authorized vs. FY 2017 Amended Request FY 2017 FY 2017 FY 2016 FY 2017 PB FY 2017 Amended End Strength NDAA vs. Actuals Request Authorized Request Request (Mar 2017) Active Forces Army...................................... 475,400 460,000 476,000 +16,000 476,000 Navy....................................... 324,557 322,900 323,900 +1,000 326,492 Marine Corps.......................... 183,604 182,000 185,000 +3,000 184,426 Air Force................................ 317,883 317,000 321,000 +4,000 321,125 Total, Active Forces................ 1,301,444 1,281,900 1,305,900 +24,000 1,308,043 Guard and Reserve Forces Army Reserve......................... 198,395 195,000 199,000 +4,000 199,000 Navy Reserve.......................... 57,980 58,000 58,000 - 58,175 Marine Corps Reserve............. 38,453 38,500 38,500 - 38,940 Air Force Reserve................... 69,364 69,000 69,000 - 69,000 Army National Guard............... 341,589 335,000 343,000 +8,000 343,000 Air National Guard................... 105,887 105,700 105,700 - 105,700 Total, Selected Reserve........... 811,668 801,200 813,200 +12,000 813,815 Total End Strength.................. 2,113,112 2,083,100 2,119,100 +36,000 2,121,858 FY 2017 NDAA End Strength +36K over Original Request 7 +$8.8B Request Supports Future Capabilities (Base Budget) $+15.5B* (Dollars in Millions) Army Navy Air Force Defense-Wide $+4.6B $+5.8B $+4.1B $+1.0B MQ-1 UAV +13/$+130 F/A-18E/F +24/$+2,320 F-35 +5/$+596 THAAD +12/$+151 AH-64 Apaches +20/$+708 V-22 +2/$+171 HC/MC-130 +5/$+500 USSOCOM $+198 UH-60 +17/$+376 V-22 Mods $+99 F-16 Mods $+160 ACWA $+127 RQ-7 UAV Mods $+248 P-8 +6/$+920 C-130 Mods $+137 MSE Missiles +60/$+279 C-40A +2/$+208 Bombs $+60 Javelin +591/$+104 Vehicles $+361 Aircraft Spares $+302 Guided MLRS+1188/$+155 Physical Security Tomahawks +96/$+85 Eq $+145 Patriot Mods $+228 Standard Missile $+43 EOD Eq $+221 Abrams Upgrade+27/$+330 DDG-51 $+433 Bradley Mods $+214 Ship-to-Shore Ammunition $+304 Connector +3/$+190 Ammo Industrial Javelin +515/$+77 Facility $+182 G/ATOR +3/$+125 I3MP $+195 I3MP = Installation Info Infrastructure Mod Program EOD = Explosive Disposal Ordinance THAAD = Terminal High Altitude Area Defense G/ATOR =Ground/Air Task Oriented Radar MDA = Missile Defense Agency ACWA = Assembled Chemical Weapons Alternatives Investments Improve Near-term and Mid-term Warfighter Readiness *Includes procurement and RDT&E funding 8 Highlights of Additional Request for OCO Activities (Dollars in Billions) March FY 2017 OCO Request Total $5.1 • Acceleration of the Defeat of ISIS $2.0 - Funds additional force management levels, enablers, and intelligence support as approved to support the new strategy to defeat ISIS and other worldwide violent extremists - Requests funds in the Overseas Contingency Operations Transfer Fund to enable DoD to respond to changing operational conditions • Operation FREEDOM’S SENTINEL (Afghanistan) and Theater Posture $1.1 - Funds emerging Intelligence, Surveillance and Reconnaissance (ISR) requirements, and other capabilities (e.g., Counter-Rocket Artillery and Mortar intercept systems) - Includes Special Operations Forces requirements and Air Force military personnel costs for Reserve Component personnel • Operation INHERENT RESOLVE (Iraq and Syria) $1.4 - Funds Joint Urgent Operations Needs including Counter-Unmanned Aerial systems and high priority ISR requirements that can be quickly fielded - Includes Joint Direct Attack Munitions tail kits and JAVAMAN global positioning system improvements • Counter-ISIS Train and Equip Fund (CTEF) $0.6 - Consolidates efforts and increases funding for assistance to Iraqi Security Forces and Vetted Syrian Opposition as they retake the city of Mosul and the city of Raqqah 9