DEFENSE SECRETARY HAGEL UNHAPPY WITH HOUSE AREMED SERVICES COMMITTEE BUDGET CHOICES

FROM:  U.S. DEFENSE DEPARTMENT DEFENSE 

Hagel ‘Not Pleased’ About Budget Direction in Congress

By Jim Garamone

American Forces Press Service

WASHINGTON, May 9, 2014 – Defense Secretary Chuck Hagel is not pleased about the House Armed Services Committee’s mark-up of the fiscal year 2015 Defense Department budget request, Pentagon Press Secretary Navy Rear Adm. John Kirby said today.

The committee, he said, disregarded many of DOD’s recommendations, including proposing to continue funding for the A-10 Warthog and rejecting a department request to limit military pay and conduct a new round of base realignments and closures.

“Even before the threat of sequestration,” Kirby told reporters, “this department had to -- and was -- making some pretty difficult choices, as we knew we would have to when you come out of over a decade of war.”

The secretary led a budget process this year and used the Quadrennial Defense Review and codification of the new defense strategy to craft the department’s request, Kirby said. This made for tough, difficult and strategic choices that took into consideration the world today and possible future threats.

The budget as submitted calls for finding efficiencies and savings and preserving readiness, the admiral said.

“Without speaking specifically to pending legislation, [Hagel’s] hope is that the Congress will see the wisdom in the strategic choices, the hard decisions that he has made,” Kirby said. “And his expectation is that they’ll be willing to make the same ones.

“I can tell you that the secretary was certainly not pleased by the House Armed Services Committee mark-up of the budget,” Kirby continued. “He … resolutely stands by the budget that we submitted because it was strategic in tone and because it was tied to a defense strategy that made sense.”

Kirby noted the budget process is still in its early phases. A final bill will not emerge from both houses of Congress for months and could change significantly.
“The secretary certainly hopes that when it gets to the Senate and into conference, that the Congress will prove capable of seeing the wisdom, again, in the decisions that we’ve made and being willing to make those same tough choices and putting national security first over parochial interests,” he said.

CHANGES LOOKED AT FOR GROWTH OF MILITARY PAY AND BENEFITS

FROM:  U.S. DEFENSE DEPARTMENT 
Military Must Slow Growth for Military Pay, Health Care
By Jim Garamone
American Forces Press Service

SEOUL, South Korea, Oct. 1, 2013 - The military has to look at the entire package of compensation, health care and retirement, Army Gen. Martin E. Dempsey told a U.S. Forces Korea Town Hall meeting here today.

 The chairman of the Joint Chiefs of Staff and his wife, Deanie, spent an hour answering question from the joint service audience. Budget issues were a main concern for the service members.

Personnel costs have to be brought under control, the chairman said. He assured the service members that any changes to military retirement would be grandfathered. "So the question is what do we do with retirement for the next generation of soldiers, sailors, airmen and Marines," he said. "But compensation ... and health care costs are growing at rates that are unsustainable to the all-volunteer force."

This does not mean cuts, the chairman said, "we may not actually have to reduce pay and benefits, but we have to slow the growth."

Last year, for example, DOD recommended a 1 percent pay raise for military personnel. Congress upped the total to 1.8 percent. Slowing the rate by just that much would have saved DOD $13 billion. Instead, the money to pay for the raise came out of readiness accounts, the chairman said.

In an interview with reporters traveling with him, Dempsey expanded on this. He noted he has been through three drawdowns in his career that began in 1974 – the post-Vietnam drawdown, the post-Cold War drawdown and the current one. This one is alarming to him because it is the steepest drawdown he has seen.

"The steepness of it puts us in a position to not exert enough control on balancing our requirements across all the accounts, whether they are manpower accounts, modernization, maintenance, training, family care," he said. "It's extraordinarily challenging to try to balance the budget because of the steepness of this drawdown."

He is worried about the long-term effects of the drawdown. Under sequester, DOD must cut an additional $52 billion from the budget in fiscal 2014. "If I were able to shrink the force, close some unnecessary infrastructure, potentially cancel some weapons systems that we don't think are as important as others, I think I can probably balance it and not affect readiness to the extent we are," he said.

But Congress will not allow another base realignment and closure process, and Congress has continued some weapons systems the department has specifically said it does not need. "Because there are parts of the budget that are untouchable to me at this point," he said. "Unless I can touch some of those things, it all comes out of readiness, which means the next group to deploy will be less ready than they should be.

"That's not a position that our armed forces should be in as the greatest military on the planet serving the greatest nation on the planet."

And sequestration could continue to be a year-by-year process, and that is dangerous "because we are asking the force to live with uncertainty and do it a year at a time," he said. "Eventually I think they are going to lose faith if we do it a year at a time."