    [Budget of the U.S. Government]
    [V. Creating Opportunity, Demanding Responsibility, and Strengthening Community]
    [10. Supporting the World’s Strongest Military Force]
    [From the U.S. Government Publishing Office, www.gpo.gov]

              10.  SUPPORTING THE WORLD'S STRONGEST MILITARY FORCE

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      I want America to enter the 21st Century as the world's strongest force for peace, freedom and prosperity.
                                          President Clinton
                                          October 1996

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      Our defense capability sustains America's global leadership and
    provides the backbone of our national security policy, safeguarding
    America's interests, deterring conflict, and securing the peace, where
    necessary.
      When America's diplomatic leadership helped achieve the Dayton
              Peace Accord, our military led the effort that has brought a
              year of peace in Bosnia. With our NATO, central European, and
              Russian partners, our military continues to secure the Bosnian
              accord.
      America's armed forces remain in the Persian Gulf, deterring
              war in that critical region of the world.
      In Asia and the Pacific region, U.S. military forces provide
              the critical foundation for peace, security, and stability, in
              partnership with Japan and other nations.
      In our own region, America's soldiers have supported the
              return of democracy in Haiti and helped end the exodus of
              refugees to our shores.
      To fulfill such missions, support our allies, and reassure our friends
    that America is prepared to use force in defense of our common
    interests, our armed forces must be highly ready and armed with the best
    equipment that technology can provide. In the 21st Century, we also must
    be prepared and trained for new post-Cold War threats to American
    security, such as ethnic and required conflicts that undermine
    stability. Some of these post-Cold War threats, such as the
    proliferation of weapons of mass destruction, terrorism, and drug
    trafficking, know no national borders and can directly threaten our free
    and open society.

    Sustaining a Strong Military Capability

      The United States is the only nation with the logistics, mobility,
    intelligence, and communications capabilities required to conduct large-
    scale, effective military operations on a global scale. Coupled with our
    unique position as the security partner of choice in many regions,
    America's military capability provides a foundation for regional
    stability through mutually beneficial partnerships.
      The budget continues to support the defense policy laid out by the
    Administration over the past four years--to sustain and modernize the
    world's strongest and most ready military force, a force capable of
    prevailing in two nearly simultaneous regional conflicts. It fully funds
    our commitment to maintain the highest levels of training and readiness
    for that force, and to equip our uniformed men and women with the most
    advanced technologies in the world (see Table 10-1). The Quadrennial
    Defense Review, now underway in the Department of Defense (DOD), will
    ensure that the armed forces are shaped, trained, and armed for emerging
    threats and missions, and remain capable of global military operations
    in the next century.
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                       Table 10-1.  MILITARY FORCE TRENDS
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                                      Cold War
                                       (1990)         1998      Force Target
    ------------------------------------------------------------------------
    Army:
      Divisions (active/National
       Guard).....................        18/10      10/8 \1\      10/8 \1\

    Air Force:
       Fighter wing (active/
       reserve)...................        24/12          13/7          13/7

    Navy:
       Aircraft carriers (active/
       training)..................         15/1          11/1          11/1
       Air wings (active/reserve).         13/2          10/1          10/1
       Total battle force ships
       \2\........................          546           346       330-346

    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 \3\
       Ballistic missile
       submarines.................           31            18        14 \3\
       Sea-launched ballistic
       missiles/warheads..........    568/4,864     432/3,456   336/not over
                                                                  1,750 \3\
       Heavy bombers..............          324          87 4        92 \4\

    Military personnel:
       Active.....................    2,069,000     1,431,000     1,422,000
       Selected reserve...........    1,128,000       892,000       889,000

    ------------------------------------------------------------------------
    \1\ Plus 15 enhanced readiness brigades.

    \2\ 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 ships.

    \3\ Upon entry-into-force of START II.

    \4\ Does not include 95 B-1 bombers dedicated to conventional missions.

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    Providing the Necessary Funding

      For the Defense Department's military functions, the budget proposes
    discretionary funding of $251.6 billion in budget authority and $248.4
    billion in outlays for 1998. Through 2002, the budget continues the
    Administration's plan of the last four years, completing the careful
    resizing of our military forces, ensuring full support for military
    readiness and quality of life programs in the near-term, and providing
    for the modernization of our forces as new technologies become available
    later in this decade and after the turn of the century.
      DOD funding keeps pace with inflation in 1999, and then increases
    slightly faster than inflation through 2002. Over this period, the
    budget reflects the impact of marginally lower estimates of inflation,
    offset by increases in procurement programs necessary to ensure the
    continued modernization of our military forces.
      The budget also proposes $2 billion in 1997 emergency supplemental
    appropriations to fund continuing operations in Bosnia and Southwest
    Asia, and a $4.8 billion rescission of 1997 defense resources to offset
    the cost of the supplemental and other funding requirements.

    Ensuring the Nation's Security

      Expanding Arms Control.--The President is strongly committed to
    reducing the threat of weapons of mass destruction through arms control
    agreements. Over the past four years, the Administration has worked hard
    to implement the START I treaty, indefinitely and unconditionally extend
    the Nuclear Nonproliferation Treaty, obtain the signing of the
    Comprehensive Test Ban Treaty (CTBT), and

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    achieve a Conventional Forces in Europe (CFE) Flank Agreement and terms of reference for follow-on CFE adaptation. The START II treaty, which the Senate approved 87 to 4 on January 26, 1996, awaits approval by the Russian Republic. Following Russian acceptance, implementing this treaty in combination with START I will reduce the number of warheads deployed on long-range missiles and bombers to a third of the Cold War level and will eliminate all land-based, multiple-warhead ICBMs.
      Securing the Senate's support of the Chemical Weapons Convention (CWC)
    is one of the President's top legislative priorities for this year. It
    is vital to national security for the United States to be an original
    party to this landmark agreement, which will become effective on April
    29, 1997. The CWC will dramatically reduce the chemical threat to U.S.
    servicemembers and civilians by requiring parties to eliminate existing
    stockpiles and restricting the flow of dual-use chemicals that can be
    used to make chemical weapons. Furthermore, a global ban on the use,
    production, stockpiling, and transfer of anti-personnel landmines
    remains a Presidential priority.

       Reducing Weapons of Mass Destruction in the Former Soviet Union.--The
    Cooperative Threat Reduction program (also called the Nunn-Lugar
    program) has made a major contribution to U.S. security by ensuring a
    safe and speedy relocation and dismantling of nuclear forces in the
    former Soviet Union. The budget proposes $382 million to continue this
    important program in 1998.
       Countering Proliferation of Weapons of Mass Destruction.--The budget
    also proposes almost $600 million to develop capabilities to locate and
    neutralize weapons of mass destruction before they can be used, and to
    protect our troops against their effects. High-priority efforts include
    developing the means to identify and destroy underground storage sites,
    and methods to detect and track weapons shipments. Key efforts to
    protect troops against chemical and biological agents include developing
    advanced detection devices, vaccines, and protective clothing.
      Maintaining the Nation's Nuclear Deterrent: The budget proposes $5.1
    billion in 1998, and $20.1 billion over the next five years, for the
    Department of Energy (DOE) to ensure the safety and reliability of our
    nuclear weapons stockpile. The $20.1 billion reflects the President's
    commitment to $4 billion a year for five years. The year-to-year stream
    in the budget reflects full ``up-front funding'' for major construction
    projects, which allocates a larger share of the total cost to 1998 and
    lower costs to later years. DOE will continue building new facilities to
    ensure safety and reliability without underground testing. The President
    is committed to the CTBT, which would prohibit all nuclear testing and
    which he signed in September at the United Nations. The Administration
    plans to submit the treaty to the Senate for ratification.
       Developing and Deploying Defenses Against Tactical Ballistic
    Missiles.--With over $2 billion in proposed funding for 1998, the
    Administration's Theater Missile Defense (TMD) program will provide
    defenses against missiles that directly threaten American and allied
    ground, naval, and air forces deployed abroad. Funding for TMD supports
    initial procurement of an advanced version of the Patriot missile, as
    well as development of advanced systems to meet future threats.
       Developing Technologies to Defend Against Strategic Ballistic
    Missiles.--The budget proposes $0.5 billion in 1998 for a vigorous
    effort to develop the elements of a national missile defense system to
    protect the United States. Although we do not need such a system now,
    the development of a contingency capability will ensure that deployment
    could proceed rapidly, if a missile threat to the United States should
    emerge sooner than our intelligence community now estimates. A decision
    now to force early deployment would not only waste billions of dollars,
    it would force adoption of immature technologies that are unlikely to
    provide an effective defense.
       Ensuring Successful Contingency Operations.--U.S. forces have
    provided leadership in contingency operations that support American
    interests--from monitoring U.N. sanctions on Iraq, to permitting the
    return of democracy to Haiti, to implementing the Dayton Peace Accord in
    Bosnia. The budget funds ongoing contingency operations in Southwest
    Asia and Bosnia. Congressional approval of these funds would allow DOD
    to avoid redirecting funds

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    from operations and maintenance programs to these operations, thereby maintaining our force's high level of readiness.
       Though Congress provided funding for contingency operations in 1997,
    unfunded 1997 costs (mainly for Bosnia) total about $2 billion. To fund
    them, the budget proposes a 1997 emergency supplemental appropriation.
    The budget also proposes $2.2 billion for the cost of contingency
    operations in 1998. Of the $2.2 billion, $0.7 billion is included in the
    Services' operation and maintenance accounts for ongoing operations in
    Southwest Asia, and the remaining $1.5 billion is included in the
    Overseas Contingency Operations Transfer Account for operations in
    Bosnia.

       Providing Humanitarian and Disaster Assistance.--The unique
    capabilities and global presence of U.S. forces often dictate that DOD
    respond to international disasters and human tragedies. Such responses
    may occur at the direction of U.S. commanders who have the only assets
    in place to respond quickly to a regional problem, or at the President's
    direction when he determines that DOD is the appropriate agency to
    provide U.S. support. The proposed $80 million for the Overseas
    Humanitarian, Disaster, and Civic Aid account would allow DOD to provide
    support without diverting readiness-related resources from their
    intended use.
       Establishing Information Dominance.--Our preeminence in information
    technology has helped us field the world's strongest military force. The
    Administration seeks to preserve information dominance in order to
    support our military operations and national security strategy.
       Intelligence is critical to information dominance, and it continues
    to play a large role in both military operations and national security
    decision-making. This year's intelligence budget is guided by explicit
    intelligence priorities that the President established for the post-Cold
    War era.
      A new intelligence initiative exemplifies the Administration's
    efforts. The National Reconnaissance Office will develop a new
    generation of smaller intelligence satellites that will increase
    coverage and permit greater operational flexibility. Also, this budget
    is the first to provide funds for the newly established National Imagery
    and Mapping Agency (NIMA), which will consolidate disparate imagery
    processing and mapping activities throughout DOD and the Central
    Intelligence Agency. NIMA will more efficiently use imagery resources
    and ensure that imagery products are more responsive to military
    commanders and civilian decision-makers.

     Maintaining Military Readiness

      Ensuring Adequate Resources for Readiness.--Maintaining the readiness
    and sustainability of U.S. military forces remains the Administration's
    top defense priority. The budget provides full funding for operations
    and support programs critical to sustaining the military's current high
    readiness levels. These programs include unit training activities,
    recruiting and retention programs, joint exercises, and equipment
    maintenance.
       DOD continues to improve its capacity to assess current and future
    military readiness, particularly through the Senior Readiness Oversight
    Council and the Joint Monthly Readiness Review process. These efforts
    enhance DOD's ability to ensure that critical readiness programs receive
    sufficient resources and that our forces remain prepared to accomplish
    their missions.

       Enhancing Quality of Life of Military Personnel.--The Administration
    strongly supports quality of life programs that help attract and retain
    motivated and enthusiastic high-quality personnel. The budget continues
    this commitment by providing a 2.8 percent military pay raise, effective
    January 1998, and substantial funding to continue upgrading and
    improving barracks and family housing.
       Protecting our Forces and Combating Terrorism.--The protection of
    U.S. service members, whether deployed or at home, against the threat of
    terrorism is a fundamental task of our defense planning. The terrorist
    attack against U.S. forces at Khobar Towers in Saudi Arabia reminded all
    Americans of the increasing terrorist threat that we face--at home and
    abroad. In light of the threat, the Administration amended the 1997
    budget to propose $1 billion for anti-terrorism programs across the
    Federal Government, which Con-

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    gress approved. The DOD portion, $350 million, consisted of specific Persian Gulf security measures; general overseas facilities and force protection upgrades; and training, awareness, and other programs designed to combat terrorism.
       The budget fully funds DOD's anti-terrorism/force protection program
    at $4.5 billion. The funds are designed to improve our preparedness to
    respond to a terrorist attack that employs weapons of mass destruction,
    and they will enable DOD to initiate a sweeping vulnerability assessment
    program to identify and respond to force protection needs beyond those
    already identified and funded.

     Modernizing Our Military Forces

       Modernizing Equipment.--As the armed forces prepare to enter the 21st
    Century, modernizing U.S. military hardware is a central goal of our
    defense budget planning. The next generation of military equipment
    promises to provide greater combat capabilities, and enhance the
    readiness of our forces. Most important, the marked technological
    advantage of the next generation will mean fewer casualties and a
    quicker resolution of conflict.
       Providing Adequate Modernization Funding.--The budget proposes that
    procurement funding grow, in real terms, by over 40 percent from 1998 to
    2002. Critical modernization programs that are now in production would
    continue--including DDG-51 guided-missile destroyers and precision
    munitions such as the Joint Standoff Weapon. Low-rate production of
    Marine Corps V-22 aircraft and the Navy's multi-role F/A-18E/F fighter
    would continue in 1998. Initial procurement of the Navy's New Attack
    Submarine would begin in 1998, and low-rate production of the Air
    Force's F-22 Advanced Tactical Fighter would begin in 1999. Full-rate
    production of the V-22, F/A-18E/F, and the F-22 would start at, or near,
    the turn of the century. DOD would modernize and improve U.S. mobility
    forces through continued acquisition of large, medium speed roll-on/
    roll-off sealift ships and the highly capable C-17 strategic airlift
    aircraft.
       Providing Modernization for the Long-Term.--The budget proposes major
    investments in research and development for advanced systems that would
    enter production in the middle of the next decade. The Air Force, Navy,
    and Marine Corps are developing a Joint Strike Fighter as a cost-
    effective replacement for today's tactical fighter and attack aircraft.
    Other major weapons in development include the Army's Comanche
    helicopter, a new surface ship for the Navy, and an advanced amphibious-
    assault vehicle for the Marine Corps.

     Managing Our Defense Resources More Efficiently

       As we shape U.S. defense strategy for managing conflict and ensuring
    peace in the post-Cold War era, the Nation also must develop new,
    innovative approaches to managing our defense program. DOD is launching
    various efforts to meet this challenge, which would help ensure that we
    can afford our defense program.

       Redesigning Military Strategy.--As the 1997 Defense Authorization Act
    requires, the Quadrennial Defense Review will reassess current defense
    strategy and the defense program in light of U.S. interests, fiscal
    constraints, and emerging new technologies. Areas that it will review
    include force structure, readiness, modernization, and infrastructure.
    The law requires that DOD report the results of this review by May 15,
    1997.
       Implementing the Information Technology Management Reform Act
    (ITMRA).--By implementing ITMRA, DOD will bring modern command, control,
    communications, and computing systems into operational use. DOD is
    restructuring work processes and applying modern technology to improve
    performance and cut costs. In addition, DOD's new Chief Information
    Officer is establishing information technology investment criteria and
    performance measures to ensure that DOD's $10 billion investment in
    information technology and processes produces measurable results and a
    significant return on investment. For example, DOD's Office of Health
    Affairs and the Defense Logistics Agency have used information
    technology to enable them to work with commercial suppliers to
    significantly reduce supply delivery times and on-hand DOD stocks, thus
    greatly cutting costs.

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       Implementing Base Closure and Realignment.--Since 1988, four Base
    Closure and Realignment Commissions have approved the elimination of
    about 20 percent of our defense infrastructure (recommending the closure
    of 97 out of 495 major military installations and over 200 smaller
    installations). The $5.6 billion in projected annual savings (after all
    closure activities are completed by 2001) would help fund the
    modernization of our military forces. To achieve these savings, the
    budget fully funds the implementation of the final recommendations of
    the 1995 Base Closure and Realignment Commission.
       Improving Financial Management.--The Administration remains committed
    to reforming DOD's financial management activities and systems. DOD must
    overcome major impediments to create an effective agency-wide accounting
    system structure and to produce auditable financial statements. It has,
    however, taken steps to improve its financial management in such areas
    as problem disbursements, contractor overpayments, fraud detection and
    controls, and standardized accounting systems. For example, DOD has cut
    the category known as problem disbursements from a total of $51.2
    billion in June 1993 to $18.1 billion in June 1996.
       Streamlining the Civilian Work Force.--DOD will continue to
    streamline its civilian work force while maintaining its quality. The
    budget reflects a cut of almost 218,000, or about 25 percent, in DOD
    civilian positions from 1993 to 1999. Consistent with the principles of
    the Vice President's National Performance Review, DOD is reducing
    headquarters, procurement, finance, and administrative staffs.
       Implementing the Government Performance and Results Act (GPRA).--DOD
    continues to incorporate performance evaluation into its decision-making
    for such broad-based programs as weapons purchases, transportation
    methods, and inventory control. It has designated seven programs as
    demonstration projects to provide a blueprint for full GPRA
    implementation.
       Using the Private Sector for Support Functions.--To cut costs and
    make operations more efficient, the Commission on Roles and Missions of
    the Armed Forces recommended that DOD increase its use of the private
    sector to provide support functions. In August 1995, the Deputy
    Secretary of Defense established an Integrated Product Team for
    Privatization, which now includes senior representatives from the
    military departments, defense agencies, OMB, and the Secretary's staff.
    Also, DOD and OMB are working together to develop competition,
    outsourcing, and other privatization initiatives by forming an inter-
    agency Senior Policy Group for Privatization.