    [Senate Hearing 110-201]
    [From the U.S. Government Publishing Office]

                                                     S. Hrg. 110-201, Pt. 6

    DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR
                                      2008

    =======================================================================

                                    HEARINGS

                                   before the

                          COMMITTEE ON ARMED SERVICES
                              UNITED STATES SENATE

                           ONE HUNDRED TENTH CONGRESS

                                 FIRST SESSION

                                       ON

                                    S. 1547

         TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 2008 FOR MILITARY
    ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND
       FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE
    PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR
                                 OTHER PURPOSES

                                   ----------

                                     PART 6

                                   PERSONNEL

                                   ----------

                          MARCH 28 AND APRIL 18, 2007

             Printed for the use of the Committee on Armed Services

    DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR
                            2008--Part 6  PERSONNEL

                                                      S. Hrg. 110-201 Pt. 6

    DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR
                                      2008

    =======================================================================

                                    HEARINGS

                                   before the

                          COMMITTEE ON ARMED SERVICES
                              UNITED STATES SENATE

                           ONE HUNDRED TENTH CONGRESS

                                 FIRST SESSION

                                       ON

                                    S. 1547

         TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 2008 FOR MILITARY
    ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND
       FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE
    PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR
                                 OTHER PURPOSES

                                   __________

                                     PART 6

                                   PERSONNEL

                                   __________

                          MARCH 28 AND APRIL 18, 2007

             Printed for the use of the Committee on Armed Services

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                          COMMITTEE ON ARMED SERVICES

                         CARL LEVIN, Michigan, Chairman

    EDWARD M. KENNEDY, Massachusetts     JOHN McCAIN, Arizona
    ROBERT C. BYRD, West Virginia        JOHN WARNER, Virginia,
    JOSEPH I. LIEBERMAN, Connecticut     JAMES M. INHOFE, Oklahoma
    JACK REED, Rhode Island              JEFF SESSIONS, Alabama
    DANIEL K. AKAKA, Hawaii              SUSAN M. COLLINS, Maine
    BILL NELSON, Florida                 JOHN ENSIGN, Nevada
    E. BENJAMIN NELSON, Nebraska         SAXBY CHAMBLISS, Georgia
    EVAN BAYH, Indiana                   LINDSEY O. GRAHAM, South Carolina
    HILLARY RODHAM CLINTON, New York     ELIZABETH DOLE, North Carolina
    MARK L. PRYOR, Arkansas              JOHN CORNYN, Texas
    JIM WEBB, Virginia                   JOHN THUNE, South Dakota
    CLAIRE McCASKILL, Missouri           MEL MARTINEZ, Florida

                       Richard D. DeBobes, Staff Director

                  Michael V. Kostiw, Republican Staff Director

                                     ______

                           Subcommittee on Personnel

                     E. BENJAMIN NELSON, Nebraska, Chairman

    EDWARD M. KENNEDY, Massachusetts     LINDSEY O. GRAHAM, South Carolina
    JOSEPH I. LIEBERMAN, Connecticut     SUSAN M. COLLINS, Maine
    JIM WEBB, Virginia                   SAXBY CHAMBLISS, Georgia
    CLAIRE McCASKILL, Missouri           ELIZABETH DOLE, North Carolina

                                      (ii)
    ?

                                C O N T E N T S

                                  ----------

                        CHRONOLOGICAL LIST OF WITNESSES
      Active Component, Reserve Component, and Civilian Personnel Programs
                                 march 28, 2007

                                                                       Page
    Chu, Hon. David S.C., Under Secretary of Defense for Personnel
      and Readiness..................................................
    Hall, Hon. Thomas F., Assistant Secretary of Defense for Reserve
      Affairs........................................................
    Jones, Stephen L., DHA, Principal Deputy Assistant Secretary of
      Defense for Health Affairs.....................................
    Rochelle, LTG Michael D., USA, Deputy Chief of Staff, G-1, United
      States Army....................................................
    Harvey, VADM John C., Jr., USN, Chief of Naval Personnel, United
      States Navy....................................................
    Coleman, Lt. Gen. Ronald S., USMC, Deputy Commandant for Manpower
      and Reserve Affairs, United States Marine Corps................
    Brady, Lt. Gen. Roger A., USAF, Deputy Chief of Staff, Manpower
      and Personnel, United States Air Force.........................

    Joint Hearing with the Subcommittee on Readiness and Management Support
      to Receive Testimony on the Readiness Impact of Quality of Life and
      Family Support Programs to Assist Families of Active Duty, National
                     Guard, and Reserve Military Personnel
                                 april 18, 2007

    Dominguez, Hon. Michael L., Principal Deputy Under Secretary of
      Defense for Personnel and Readiness............................
    Davis, Lynda C., Deputy Assistant Secretary of the Navy for
      Military Personnel Policy......................................
    McLaurin, John, Deputy Assistant Secretary of the Army for Human
      Resources......................................................
    Brady, Lt. Gen. Roger A., USAF, Deputy Chief of Staff for
      Manpower and Personnel, Headquarters, United States Air Force..
    McDonald, Connie, Spouse of an Army Servicemember................
    Sumrall, Paula, Spouse of a National Guard Servicemember.........
    Hall, Launa, Spouse of an Air Force Servicemember................
    Piacentini, Mary, Spouse of an Army Reserve Servicemember........
    Raezer, Joyce Wessel, Chief Operating Officer, National Military
      Family Association.............................................

                                     (iii)

    DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR
                                      2008

                                  ----------

                           WEDNESDAY, MARCH 28, 2007

                                   U.S. Senate,
                             Subcommittee on Personnel,
                                   Committee on Armed Services,
                                                        Washington, DC.

      ACTIVE COMPONENT, RESERVE COMPONENT, AND CIVILIAN PERSONNEL PROGRAMS

        The subcommittee met, pursuant to notice, at 4:00 p.m. in
    room SR-232A, Russell Senate Office Building, Senator E.
    Benjamin Nelson (chairman of the subcommittee) presiding.
        Committee members present: Senators E. Benjamin Nelson and
    Collins.
        Majority staff members present: Jonathan D. Clark, counsel;
    Gabriella Eisen, professional staff member; and Gerald J.
    Leeling, counsel.
        Minority staff member present: Diana G. Tabler,
    professional staff member.
        Staff assistants present: David G. Collins and Fletcher L.
    Cork.
        Committee members' assistants present: Eric Pierce,
    assistant to Senator Ben Nelson; Stephen C. Hedger, assistant
    to Senator McCaskill; Mark J. Winter, assistant to Senator
    Collins; and Clyde A. Taylor IV, assistant to Senator
    Chambliss.

       OPENING STATEMENT OF SENATOR E. BENJAMIN NELSON, CHAIRMAN

        Senator Ben Nelson. I'll call the subcommittee to order.
        The subcommittee meets today to receive testimony on the
    Active, Guard, Reserve, and civilian personnel programs in
    review of the National Defense Authorization Request for Fiscal
    Year 2008 and the Future Years Defense Program (FYDP).
        I'd like to begin by stating how honored I am to chair the
    Subcommittee on Personnel. It is a great honor, and I look
    forward to my time as chairman. I'm especially grateful to have
    Senator Graham as the ranking member. I am sorry he's not here
    to hear all these nice things I'm going to say about him, but
    I'm going to say them about him in any event. He and I have
    worked together for several years. While he was chairman, I was
    the ranking member, and we always worked well together.
    Whatever the political divisions of the larger Senate, or
    Congress, I've found it quite easy to cross the aisle during my
    time on the Senate Armed Services Committee, and particularly
    this subcommittee. We all want to do what's right by our
    servicemembers and their families. So, I look forward to
    continuing the relationship with Senator Graham.
        I welcome back Senators Kennedy, Lieberman, Collins,
    Chambliss, and Dole to the subcommittee. I thank them for their
    continued service. This year, we welcome two new Senators to
    the subcommittee, Senators Jim Webb and Claire McCaskill.
    They'll bring unique insights and ideas to the subcommittee,
    and I look forward to working with them.
        Of course, to our witnesses, welcome, Secretary Chu. By my
    count, this will be at least your ninth appearance before this
    subcommittee. You probably have not been counting, but you
    should be. We appreciate your service and dedication to our
    servicemembers and their families. You've provided continuity
    and steady leadership in your time with the Department of
    Defense (DOD), and I thank you for that.
        We also welcome today Dr. Stephen Jones, who hails from the
    great State of South Carolina. Senator Graham is well aware of
    your presence here today, and I know that he'll be joining us
    shortly. Dr. Jones is the Principal Deputy Assistant Secretary
    of Defense for Health Affairs.
        Of course, rounding out our first panel is Secretary Thomas
    F. Hall, Assistant Secretary of Defense for Reserve Affairs.
        So, welcome to all of you.
        The second panel will consist of the personnel chiefs from
    each of the Services, and I'll introduce them when the second
    panel is seated.
        We meet today as the fourth year of the war in Iraq comes
    to a close and we enter a fifth. Since the institution of the
    All-Volunteer Force in 1973, the Nation has not faced as
    protracted a conflict as the one it now faces. The force is
    stressed. Both the Active and Reserve components are stretched
    thin. It is all the Services can do to ensure the readiness and
    mission capability of forces deploying, redeploying, and
    redeploying again to Iraq and Afghanistan. Because of this
    stress, soldiers and marines are not getting the training they
    would normally get to ensure their readiness for missions
    outside of the current conflict. The stress is not limited to
    our servicemembers. We must not forget their families. The
    stress on the modern military family is unprecedented.
    According to a recent report by the American Psychological
    Association Presidential Task Force on Military Deployment
    Services for Youth, Families, and Servicemembers, 700,000
    children in this country have at least 1 parent deployed away
    from home. That's mindboggling to consider. In addition to
    those children, there are the spouses, grandparents, aunts,
    uncles, and siblings left to raise the children in the absence
    of their parent or parents. We must never lose sight of the
    families as we consider what measures to take to enhance the
    safety and well-being of our servicemembers. Their family is
    our family.
        We also face issues with the physical disability evaluation
    system. Between the DOD and Department of Veterans Affairs
    (VA), two disparate systems exist that rate disabled veterans
    differently. Moreover, the DOD system is so weighed down with
    bureaucracy that our wounded soldiers have difficulty
    navigating the system, as the recent hearings on the issues at
    Walter Reed Army Medical Center have revealed.
        Meanwhile, we're trying to increase the size of the Army
    and Marine Corps. The administration has belatedly recognized
    that a larger force was, and is, needed. Growing the force
    raises obvious questions about recruiting and retention, as
    well as the right mix of pay, bonuses, and benefits to attract
    and retain America's best young men and women. Also, as we go
    down this road of increasing the Army and Marine Corps end
    strength, we must be sure it's not growth just for the sake of
    growth. The growth in our ground forces must be tied to a
    strategic analysis of the global threat in the short-term, as
    well as the long-term. The growth must be directly tied to the
    force that is needed to combat those threats.
        Increased end strength doesn't come without a cost. While
    not exactly a zero-sum game, there are budgetary tradeoffs to
    growing the force. All of this reflects the reality that we
    face today. Our servicemembers shoulder more responsibility and
    are increasingly asked to do more. With the increased
    requirements comes a cost that is difficult to bear.
        We absolutely must take care of our soldiers, especially
    our wounded soldiers and their families. We cannot have another
    Walter Reed. We must ensure that our soldiers are properly
    trained and equipped to perform the tasks we ask them to
    perform, as well.
        So, on these issues, there can be no compromise. The issues
    we face going forward are difficult, but not insurmountable. I
    look forward to hearing from our witnesses today on the
    programs and priorities DOD has identified to overcome these
    challenges.
        When Senator Graham arrives, we'll ask him for his opening
    statement, but, for the sake of the time factor, we would ask
    you if you would proceed with your opening statements.

     STATEMENT OF HON. DAVID S. C. CHU, UNDER SECRETARY OF DEFENSE
                      FOR PERSONNEL AND READINESS

        Dr. Chu. Delighted to do so, sir. Thank you for your very
    generous comments in your introductory statement.
        I am privileged to be here today to explain the programs
    proposed by DOD to sustain its people in this long conflict. I
    think you've correctly noted the challenge we face. This is a
    long-distance effort, and the fact that the Nation is pursuing
    it with a volunteer force is a historic decision.
        We do have a joint statement, for the record, which I hope
    you would accept for this hearing.
        Senator Ben Nelson. It will be accepted, without objection.
        Dr. Chu. Thank you, sir.
        It is a lengthy statement, and one might ask, ``Why is it
    so lengthy?'' It is lengthy because it illustrates the
    complexity of sustaining a volunteer force in a long conflict,
    the many different programs that we need to pursue and support
    in order to be successful; and we are very grateful for the
    support that Congress has given us. It has been critical to the
    success we have enjoyed to date.
        I can report, sir, that your All-Volunteer Force is in good
    health today. You can see that good health in the excellent
    retention statistics; the people who have joined us are staying
    with us, and staying with us at high levels, despite the stress
    and the burdens that they and their families bear, that you so
    correctly identified. You can see it also, I think, in the
    success in recruiting. The four Active Services are meeting
    their recruiting goals.
        I do underscore the importance of broad public support for
    service in the military of the United States. This is a subject
    we've discussed before, a subject in which we can all be
    advocates so that when the young man or young woman comes home
    and discusses this prospect, he or she is met with enthusiasm
    and interest, and not with skepticism and doubt. I do think
    that is a challenge, in terms of national attitudes.
        As you noted, sir, DOD is expanding its capabilities. The
    Air Force and the Navy are doing so with a reduction in the
    number of people they think they will need in order to carry
    out their responsibilities. They are, importantly, using the
    funds freed by those reductions in order to bolster the
    investment accounts to buy the new-generation equipment that's
    so essential to our long-term success.
        The Army and the Marine Corps, in contrast, are increasing
    their end strength at the same time the DOD is proposing
    increases in their investment accounts. That does mean that the
    Army, specifically, does receive a larger share of the overall
    DOD budget.
        We are creating additional manpower capacity through one
    other route, and that is the conversion of military billets in
    nonmilitary occupational areas to civil status. Through the end
    of this fiscal year, we anticipate the conversion, department-
    wide, of approximately 31,000 billets; and, by the end of
    fiscal year 2013, we think that total will reach 55,000, on a
    cumulative basis.
        We do need some new authorities, sir, and let me highlight,
    if I may, in the fiscal 2008 effort three areas, in particular,
    that enjoy high priority in DOD's proposals.
        First, some modest relief, in terms of grade restrictions
    for mid-career officers and for E-9s. We find, with the advent
    of additional joint headquarters, joint efforts, combined
    efforts, integrated efforts, as some would describe them, where
    we work with nongovernment organizations (NGOs), that we need
    more of those who are equipped to deal with these complex
    issues that we face today.
        Second, we would very much like to seek, from Congress,
    broad demonstration authority to manage officer communities in
    a manner different from that which is constrained by the
    Defense Officer Personnel Management Act. We would restrict
    that authority, in terms of its scope, so that we can try out
    on a limited basis what might be promising ideas for the long-
    term for a wider section of the force.
        The third area in which we'd seek new authorities has to do
    with how special pays in the military are constructed and the
    variety of pays and bonuses that we offer in order to provide
    incentive or recompense for the duties that individuals
    undertake. There are now approximately 60 different sections of
    statute on this point. It's often confusing to the individual
    servicemember why he or she is paid this way in this
    circumstance and a different way in another circumstance. It's
    also a significant administrative challenge for the DOD. My
    hope would be that we can bring these separate pay authorities
    under a small number of broader headings that would make them
    more efficient, make them more easily understood by our people,
    and that would, at the same time, make them more effective in
    carrying out our responsibilities to sustain this All-Volunteer
    Force.
        If I may, sir, I would turn to my colleagues, Secretary
    Hall and Dr. Jones, and ask them, very briefly, to say a word
    about their areas of responsibility.
        Thank you, sir.
        [The joint prepared statement of Dr. Chu, Mr. Hall, and Dr.
    Jones follows:]

    Joint Prepared Statement by Hon. David S. C. Chu, Hon. Thomas F. Hall,
                         and Dr. Stephen L. Jones, DHA

                                  INTRODUCTION

        Mr. Chairman and members of this distinguished subcommittee, thank
    you for inviting us to be here today.
        We are now in the sixth year of a ``Long War.'' A necessary
    condition for success is the continued viability of our All-Volunteer
    Force. We all agree that the dedication and superb performance of
    Active and Reserve servicemembers and Department of Defense (DOD)
    civilians--our Total Force--are beyond dispute.
        To that Total Force we must also add the families of those who
    serve. Without their strong support and willingness to sacrifice, we
    could not sustain adequate numbers of high-performing soldiers,
    sailors, airmen, and marines. These men and women must go into harm's
    way confident that the welfare of those they hold dear is protected.
        We face two fundamental and related challenges. First, we must
    continue to attract and retain high quality, motivated individuals for
    Active and Reserve military service and we must maintain an
    enthusiastic and skilled civilian workforce.
        Second, we must make hard choices, weighing sufficiency against the
    risks of an uncertain future. As we invest in our human capital, we
    must do so judiciously. While our future challenges may often seem
    without bounds, our resources are not. We must choose wisely.

                            THE ALL-VOLUNTEER FORCE

        Shaping the Force. We will balance our end strength needs--
    increasing where we must, decreasing where it makes sense. To that end,
    we propose to permanently increase the end strength of the Army and
    Marine Corps, focusing on combat capability. However, planned
    reductions resulting from transformation efforts in the active Air
    Force and Navy manpower programs, and the Navy Reserve, as stated in
    our fiscal year 2008 President's budget request, balance risk with
    fiscally responsible manpower program decisions.
        To support these programmed strength reductions, we have developed
    an integrated package of voluntary separation incentives. We want to
    recognize the enhancement to the targeted incentive authority that you
    provided us, which allows us to offer monetary incentives to shape the
    military Services by offering these incentives to non-retirement
    eligible officer and enlisted personnel in specific grade, skill and
    year service cohorts. Voluntary incentive tools like this are of
    particular importance when the Air Force and Navy are decreasing in
    size while the Army and Marine Corps are increasing operating strength.
    Our goal is to use these tools sparingly to make sure our forces are
    sized and shaped to be the most effective, flexible and lethal. Only if
    voluntary separations do not suffice would the military departments, as
    a last resort, implement involuntary separation measures such as Early
    Discharge Authority or Selective Early Retirement.
        Military-to-civilian conversions help alleviate stress on the force
    and reduce workforce costs. This initiative replaces uniformed
    servicemembers in activities that are not ``military essential'' with
    DOD civilians or private sector contractors. By the end of fiscal year
    2007, the number of conversions should exceed 31,000. When conversions
    programmed through fiscal year 2013 are completed, the total number of
    conversions should exceed 55,500. In addition, DOD components have
    established goals that could eventually raise this number to over
    62,000.
        When the Navy and the Air Force convert military billets to DOD
    civilian or private sector performance, they reduce their military end
    strength without any loss of combat capability. Because the average
    costs of civilians are less than the average costs of military, there
    are net savings that are used for force modernization,
    recapitalization, and other compelling needs.
        When the Army and Marine Corps convert military billets, both
    Services retain the military end strength so it can be reallocated to
    operating units to increase force capability, thereby reducing the
    pressure on recruiting. Military-to-civilian conversions likewise offer
    both Services a way to man units more quickly at the mid-grade level.
    Because civilians cost less on average than their military
    counterparts, military conversions provide a less expensive way of
    increasing the size of the operating force than an increase to military
    end strength would provide.
    Active Duty Recruiting
        During fiscal year 2006, the active duty components recruited
    167,909 first-term enlistees and an additional 12,631 individuals with
    previous military service, attaining over 100 percent of the DOD goal
    of 179,707 accessions.
        While meeting our quantitative goals is important, we also need to
    have the right mix of recruits who will complete their term of service
    and perform successfully in training and on the job. The ``quality'' of
    the accession cohort is critical. We typically report recruit quality
    along two dimensions--aptitude and educational achievement. Both are
    important, but for different reasons.
        All military applicants take a written enlistment test called the
    Armed Services Vocational Aptitude Battery. One component of that test
    is the Armed Forces Qualification Test (AFQT), which measures math and
    verbal skills. Those who score above average on the AFQT are in
    Categories I-IIIA. We value these higher-aptitude recruits because they
    absorb training lessons and perform better on the job than their lower-
    scoring peers (Categories IIIB-IV). These category groupings describe a
    range \1\ of percentiles, with Category I-IIIA describing the top half
    of American youth in math and verbal aptitudes.
    ---------------------------------------------------------------------------
        \1\ AFQT (Math-Verbal) Percentile: I (93-99); II (65-92); IIIA (50-
    64); IIIB (31-49); IV (10-30).
    ---------------------------------------------------------------------------
        We also value recruits with a high school diploma because they are
    more likely to complete their initial 3 years of service. About 80
    percent of recruits who have received a traditional high school diploma
    complete their first 3 years, yet only about 50 percent of those who
    have not completed high school will make it. Those holding an
    alternative credential, such as a high school equivalency or a General
    Educational Development certificate, fall between those two extremes.
        In conjunction with the National Academy of Sciences, the
    Department reviewed how best to balance educational attainment,
    aptitude, recruiting resources, and job performance. With an optimizing
    model we established recruit quality benchmarks of 90 percent high
    school diploma graduates and 60 percent scoring above average on the
    AFQT. Those benchmarks are based on the relationship among costs
    associated with recruiting, training, attrition, and retention using as
    a standard the performance level obtained by the enlisted force cohort
    of 1990--the force that served in Operations Desert Shield/Desert
    Storm. Thus, the benchmarks reflect the aptitude and education levels
    necessary to minimize personnel and training costs while maintaining
    the required performance level of that force.
        For over 20 years, the military Services have met or exceeded the
    Department's benchmarks for quality active-duty recruits (Figure 1).

        The quality of new active duty recruits remained high in fiscal
    year 2006. DOD-wide, 91 percent of new active-duty recruits were high
    school diploma graduates (against the goal of 90 percent). This
    compares favorably to the national average in which only about 80
    percent graduate from high school. On the AFQT, 69 percent are drawn
    from the top half of America's youth (versus a desired minimum of 60
    percent).
        Through January, all Services have met or exceeded numerical
    recruiting objectives for the active force. Army achieved 28,407 of its
    26,350 recruiting goal, for a 108 percent year-to-date accomplishment
    (Table 1). The Active Army did fall short of recruits with a high
    school diploma (80 percent versus the desired 90 percent). Although the
    Army is slightly below the desired number of recruits scoring at or
    above the 50th percentile on the AFQT, we look for the Army to achieve
    the DOD benchmark by the end of fiscal year 2007.

                     TABLE 1. FISCAL YEAR 2007 ACTIVE DUTY ENLISTED RECRUITING THROUGH FEBRUARY 2007
    ----------------------------------------------------------------------------------------------------------------
                                                          Quantity                              Quality
                                          --------------------------------------------------------------------------
                                                                                                     Percent Scoring
                                                                                    Percent High      at/above 50th
                                                                                   School Diploma     Percentile on
                                            Accessions      Goal      Percent of  Graduate (HSDG);  AFQT (Categories
                                                                         Goal     DOD Benchmark  =    I-IIIA); DOD
                                                                                     90 Percent      Benchmark  = 60
                                                                                                         Percent
    ----------------------------------------------------------------------------------------------------------------
    Army.................................      28,407       26,350        107.8                80                59
    Navy.................................      13,001       13,001        100.0                93                73
    Marine Corps.........................      11,694       11,357        103.0                95                67
    Air Force............................      11,315       11,315        100.0                98                79
                                          --------------------------------------------------------------------------
      Total..............................      64,417       62,023        103.9                90                68
    ----------------------------------------------------------------------------------------------------------------

    Active Duty Retention
        Overall, in fiscal year 2006 we exceeded Active duty retention
    goals across the board. The Army, Air Force, and Marine Corps met
    fiscal year 2006 active duty retention goals in every category. The
    Navy retained in high numbers at the outset of the year, but a focus on
    physical fitness test performance led to an increase in
    disqualification among first-term sailors later in the year. Navy is on
    a planned, controlled path to reshape the force and will continue to
    monitor carefully zone behavior by skill set.
        For fiscal year 2007, active duty retention continues on track
    (Table 2). The Army, Air Force and Marine Corps met or exceeded their
    overall active duty retention missions, although Army lags in the mid-
    career category. Historically, Army begins the year slowly and finishes
    strong; thus we are predicting that Army will meet its reenlistment
    goals in all categories, including mid-career, for fiscal year 2007.
        While Navy numbers remain below monthly goals in Zone A and Zone B,
    they should meet their Zones B and C goals at the end of the fiscal
    year, but will be challenged to meet their Zone A target. Navy will
    take necessary actions to influence reenlistment decisions and meet
    reenlistment goals.

        TABLE 2. FISCAL YEAR 2007 ACTIVE DUTY ENLISTED RETENTION THROUGH
                                  FEBRUARY 2007
    ------------------------------------------------------------------------
                                            Reenlisted
                                         Through February       Mission
                                               2007
    ------------------------------------------------------------------------
    Army
      - Initial.......................             12,442             10,384
      - Mid-Career....................              8,203              8,881
      - Career........................              6,188              6,163
    Navy
      - Zone A........................              5,079              6,405
      - Zone B........................              3,977              4,432
      - Zone C........................              2,279              2,163
    Air Force
      - Zone A........................              7,467              7,500
      - Zone B........................              4,347              4,583
      - Zone C........................              2,664              2,767
    Marine Corps
      - First.........................              5,504              3,458
      - Subsequent....................              3,389              3,250
    ------------------------------------------------------------------------

        Of course, our retention efforts ultimately support the delivery of
    seasoned performers to higher ranks. In recent years, the grade
    proportions have shifted upward slightly as we continue to field weapon
    systems and units with fewer lower-grade positions. This will require
    legislative change to adjust some of our grade structures.
        The Army is the only Service currently using Stop Loss. As of
    January 2007, the Army Stop Loss program affected less than half of one
    percent of the total force (7,148 Active component, 1,537 Reserve, and
    2,053 National Guard soldiers). The active Army Unit Stop Loss program
    takes effect 90 days prior to unit deployment or with official
    deployment order notification, if earlier, and remains in effect
    through the date of redeployment to permanent duty stations, plus a
    maximum of 90 days. Reserve component Unit Stop Loss begins 90 days
    prior to mobilization or with official mobilization alert deployment
    order notification, if later, and continues through mobilization, and
    for a period up to 90 days following unit demobilization. The Secretary
    has directed that we minimize the use of Stop Loss.
    Purpose, Missions, and Policies of the Reserve Components
        The Department's use of the Reserve components has changed
    significantly since 1990, and a mission-ready National Guard and
    Reserve Force has become a critical element in implementing our
    national security strategy. The National Guard also remains integral to
    homeland defense missions and will remain a dual-missioned force,
    performing Federal and State missions, exemplified by numerous National
    Guard members who responded to hurricanes, floods, blizzards, and
    wildfires.
        The Reserve components support day-to-day defense requirements, and
    portions of the Reserve have served as an operational force since
    Operation Desert Shield/Operation Desert Storm. This force is no longer
    just a strategic Reserve. Since September 11, 2001, an annual average
    of about 60 million duty days have been provided by Reserve component
    members--the equivalent of adding over 164,000 personnel to the active
    strength each year.
        The Reserve components support the full spectrum of operational
    missions and are currently furnishing about 18 percent of the troops in
    the Central Command (CENTCOM) theater of operations. The Reserve
    components perform a variety of nontraditional missions in support of
    the global war on terror, including providing advisory support teams in
    support of the training that will allow Iraqi and Afghan forces to
    assume a greater role in securing their own countries.
        To assist in this transformation of the Reserve components, the
    Department initiated a ``Continuum of Service'' paradigm aimed to
    provide more flexibility in creating needed capabilities and to ensure
    seamless and cost-effective management of military forces. It
    prescribes both organizational and systemic change in order to more
    effectively manage individuals throughout their military career, while
    meeting the full spectrum of military requirements in peacetime and
    wartime with greater efficiency and economy of resources. The continuum
    of service enhances the spirit of volunteerism by providing more ways
    in which military service can be performed to support DOD missions. The
    continuum provides more extensive opportunities for the part-time force
    to volunteer for extended service. Facilitating transitions between
    levels of participation reflects the convergence of two goals: that of
    an operationally integrated total force and that of a seamless force--
    one where members can easily move between full- and part-time status.
    Facilitating these goals was the creation of the ''Operational
    Support'' strength accounting category authorized by Congress in the
    National Defense Authorization Act (NDAA) for Fiscal Year 2005, which
    makes it easier and less disruptive for Reserve component members to
    volunteer to perform operational missions.
        Recognizing that this Operational Reserve is still a Reserve Force,
    our policies continue to support the prudent and judicious use of
    National Guard and Reserve members--something we have emphasized since
    2001. We have focused on husbanding Reserve component resources and
    being sensitive to the quality-of-life of mobilized personnel, their
    families, and the impact on civilian employers of reservists. Our
    policies stress advance notification to aid in predictability, as well
    as now enabling reservists and their families to take advantage of
    early access to medical benefits.
        This Operational Reserve supports ongoing missions where
    appropriate, while providing the additional Reserve capacity needed to
    meet surge requirements or support wartime or contingency operations.
    This new construct allows greater flexibility to perform new missions
    ideally suited to Reserve service, such as ``reach-back'' missions
    (Intelligence, Communications, Unmanned Arial Vehicles, etc.) and
    training missions.
    Reserve and National Guard Utilization
        There continues to be considerable discussion about the stress that
    the global war on terror places on the force. Recent guidance from the
    Secretary of Defense established new tenets of Reserve mobilization to
    support our members, their families, and their employers better while
    continuing to meet mission requirements. These principles include
    limiting involuntary unit mobilizations to no more than 12 months,
    followed by a 5 year dwell of no involuntary mobilizations; minimizing
    the use of Stop Loss; managing mobilization of ground forces on a unit
    basis; and emphasizing use of our hardship waiver programs. These
    principles will provide for increased predictability and unit
    integrity; focus on the extreme circumstances facing certain families;
    and, ensure force availability.
        Almost 565,000 Reserve component members have served in support of
    the current contingency since September 11, 2001 and more than 127,000
    have served more than once--with almost all (99 percent) of those
    127,000 volunteering for those tours. Of the current Selected Reserve
    Force of about 831,000 today, slightly more than 47 percent have been
    mobilized. We are monitoring the effects of this usage using the
    metrics of strength achievement, recruiting rates, attrition rates, and
    employer relations through the number of alleged employer mistreatment
    discussed below.
        Although end strength achievement in fiscal year 2006 was less than
    100 percent (97.1 percent) the downward trend of the previous 2 years
    was reversed. The shortfall was primarily in the Army National Guard
    and the Navy Reserve. Fiscal year 2007 projections, based partially on
    first quarter fiscal year 2007 data, indicate we will see continued
    improvement in end strength achievement.
        Department of Labor (DOL) cases involving Reserve component member
    claims of mistreatment by civilian employers have risen from 724 in
    fiscal year 2001 to 1,366 in fiscal year 2006. This is not surprising
    considering the mobilization of nearly a half million Reserve
    personnel, and a usage rate of Reserve component members in 2006 five
    times higher than in 2001 (approximately 60 million man-days in 2006
    compared to 12.7 million man-days in 2001). When normalized for usage,
    the rate of cases is consistent. DOD and DOL have established a
    Memorandum of Understanding that enhances communication and information
    sharing and mobilizes all available government resources for Reserve
    component members.
    Reserve Component Recruiting
        In a challenging recruiting environment, the DOD Reserve components
    reversed the downward trend of the preceding 3 years and, cumulatively,
    achieved 97 percent of their fiscal year 2006 recruiting objectives--a
    significant increase over the 85 percent achievement in fiscal year
    2005. Two of the six DOD Reserve components exceeded their recruiting
    objectives--the Marine Corps Reserve and the Air Force Reserve. The
    Army National Guard and Air National Guard came close to making their
    goals, achieving 98 percent and 97 percent, respectively. The Army
    Reserve fell short by 1,653 (achieving 95 percent), and the Navy
    Reserve fell short by 1,458 (achieving 87 percent). The improved
    recruiting results, coupled with low attrition, have helped the Reserve
    components achieve better end strength posture.
        Through February of fiscal year 2007, four of the six DOD Reserve
    components are exceeding their recruiting objectives (Table 3).

                         TABLE 3. RESERVE COMPONENT RECRUITING PERFORMANCE THROUGH FEBRUARY 2007
    ----------------------------------------------------------------------------------------------------------------
                                                                                                     Percent Scoring
                                                                                    Percent High    at or above 50th
    Reserve Enlisted Recruiting, Fiscal Year     Goal     Accessions  Percent of   School Diploma     Percentile on
              2007 Through February                                      Goal      Graduate (HSDG)    AFQT (Cat I-
                                                                                                          IIIA)
    ----------------------------------------------------------------------------------------------------------------
    Army National Guard.....................      25,470      26,703         105               93                58
    Army Reserve............................      11,600      10,926          94               92                57
    Naval Reserve...........................       4,018       3,598          90               92                72
    Marine Corps Reserve....................       3,015       3,128         104               95                70
    Air National Guard......................       3,724       3,935         106               98                74
    Air Force Reserve.......................       2,744       2,811         102               99                70
    ----------------------------------------------------------------------------------------------------------------

        Quality marks continue to show improvement throughout the Reserve
    components with only a slight shortfall in AFQT levels for the Army
    National Guard (ARNG) and U.S. Army Reserve (USAR). The young men and
    women being recruited today are among America's finest.
        The Army is aggressively pursuing Reserve component recruiting
    through three avenues: (1) extension of the quick ship bonus and
    improvements in the Reserve Partnership Councils; (2) stronger
    incentives, with increased enlistment bonuses for both prior service
    and non-prior service recruits; and (3) increased advertising
    expenditures, including targeted advertising to parents and others who
    influence the decisions of young Americans. Your support of these
    efforts is essential.
    Reserve Retention
        The percentage of reenlistment goal achieved increased in fiscal
    year 2006 to 104 percent, up from 100.1 percent in fiscal year 2005.
    This increase, for the fifth straight year, reflects the positive trend
    that we believe will continue in fiscal year 2007, if we maintain the
    course of judicious and prudent use.
        Measuring all losses from the Reserve components, regardless of
    reason, indicates that enlisted attrition remained below established
    ceilings for fiscal year 2006, a very positive trend. The composite
    (officer + enlisted) attrition rate of 18.4 percent was the lowest it
    has been since fiscal year 1991. In fiscal year 2007, through January
    2007, enlisted attrition is on track to remain below ceilings
    established by each Reserve component. We are closely monitoring
    retention/attrition, particularly for those members who have been
    mobilized and deployed to support operations in Iraq and Afghanistan.

                                TABLE 4. RESERVE COMPONENT ATTRITION THROUGH JANUARY 2007
    ----------------------------------------------------------------------------------------------------------------
                                                                               Fiscal Year  Fiscal Year  Fiscal Year
        Selected Reserve Enlisted Attrition Rate (in percent)       2000 YTD     2006 YTD     2007 YTD   2007 Target
                                                                  (Jan. 2000)  (Jan. 2006)  (Jan. 2007)   (Ceiling)
    ----------------------------------------------------------------------------------------------------------------
    Army National Guard.........................................         6.90         5.99         6.59         19.5
    Army Reserve................................................         8.97         6.54         7.29         28.6
    Navy Reserve................................................        10.36        11.56        10.13         36.0
    Marine Corps Reserve........................................         9.69         7.72         9.01         30.0
    Air National Guard..........................................         4.36         3.61         3.47         12.0
    Air Force Reserve...........................................         6.94         4.65         5.60         18.0
    DOD.........................................................         7.51         6.24         6.64          N/A
    ----------------------------------------------------------------------------------------------------------------

        Of all the strategies to help reduce the stress on the force, still
    the first and perhaps most important is rebalancing. Rebalancing
    improves responsiveness and eases stress on units and individuals by
    building capabilities in high-demand units and skills. In 2003,
    rebalancing was defined to include low demand structure to high demand
    structure as well as multiple initiatives such as military-to-military
    conversions, technology insertions, and organization of forces. In
    fiscal year 2006 (post Quadrennial Defense Review (QDR)), the
    definition of rebalancing was refined and updated to reflect solely the
    addition of structure (spaces) from low demand to high demand on
    ``stressed'' capability areas. Rebalancing can occur by adding force
    structure to stressed capability areas in the Active component, the
    Reserve component (Guard or Reserve), or any combination thereof.
        The Services continued to improve their Active/Reserve component
    mix by rebalancing approximately 19,000 spaces in fiscal year 2006, for
    a total of about 89,000 spaces to date. The Services have planned and
    programmed an additional 37,000 spaces for rebalancing between fiscal
    years 2007 and 2012. The amount and type of rebalancing varies by
    Service. By 2012, we expect to have rebalanced about 126,000 spaces.
    Rebalancing is a continuous and iterative process. The Department will
    continue to work closely with the Services as they review and modify
    their rebalancing plans to achieve the right mix of capabilities and
    alignment of force structure.
        The mission of the National Committee for Employer Support of the
    Guard and Reserve (ESGR) is directly related to retention of the Guard
    and Reserve Force. ESGR's mission is to ``gain and maintain support
    from all public and private employers for the men and women of the
    National Guard and Reserve as defined by demonstrated employer
    commitment to employee military service.'' Employer support for
    employee service in the National Guard and Reserve is an area of
    emphasis, considering the continuing demand the global war on terror
    has placed on the Nation's Reserve components. The broadbased,
    nationwide support for our troops by employers continues to be superb.
        Through its locally-based network of 3,500 volunteers and its full-
    time national staff, ESGR reaches out to both employers and
    servicemembers to help ensure the requirements of the Uniformed
    Services Employment and Reemployment Rights Act (USERRA), 38 U.S.C.,
    (sections 4301-4334) are understood and applied. Servicemembers and
    employers may resolve USERRA conflicts by utilizing the free mediation
    and ombudsman services provided by ESGR. ESGR's aggressive outreach
    efforts have resulted in a 50 percent reduction in the number of
    ombudsman cases from 2004 to 2005. ESGR continually increases the
    percentage of cases resolved through informal mediation.
        We established the Civilian Employment Information database and now
    require Reserve component members to register their employers. ESGR has
    established a Customer Service Center hotline to provide information,
    assistance and to gather data on issues related to Reserve component
    service. Used together, these databases enable ESGR to develop personal
    relationships with employers, measure and manage employment issues, and
    advise the Department when developing policies and practices to
    mitigate the impact on employers when a reservist employee is called to
    military duty.

                          COMPENSATION AND MANAGEMENT

    Compensation
        The men and women of today's Armed Forces are highly motivated, of
    superior quality, and extremely capable of meeting the national
    security objectives associated with the global war on terror and other
    operational engagements. To sustain this highly-skilled All-Volunteer
    Force, we must continue to work together to ensure a robust and
    competitive compensation package for our wartime professionals. We are
    grateful to Congress for its commitment to improving basic pay, housing
    and subsistence allowances, bonuses, special and incentive pay, and
    other key benefits over the past several years. These enhancements have
    been extremely beneficial to the well-being of the members of our Armed
    Forces and their families.
        Since September 11, 2001, the Department and Congress have worked
    together to increase military basic pay by approximately 28 percent. We
    are appreciative of Congress' support in the NDAA for Fiscal Year 2007
    to increase pay for higher ranking enlisted personnel and warrant
    officers as well as extend the pay table to encourage longer service.
    We have achieved our goal of pay equal to or greater than the 70th
    percentile of private sector pay for those with comparable levels of
    age, education and experience. We continue our strong commitment to
    provide a secure standard of living for those who serve in uniform by
    requesting a 3-percent increase in military pay for all servicemembers
    in the fiscal year 2008 budget. This increase is equal to earnings
    increases in the private sector as measured by the Employment Cost
    Index.
        Servicemembers must be confident that they can afford adequate
    housing when they move in the service of their country. Therefore, the
    housing allowance is one of the key elements of a competitive
    compensation package. The basic allowance for housing increased almost
    80 percent since 2001, as a direct result of the close cooperation
    between the Department and Congress. To ensure the allowance accurately
    reflects the current housing markets where servicemembers and their
    families reside, the Department will continue its efforts to improve
    our data collection.
        A top priority for the Department is ensuring servicemembers and
    their families receive appropriate compensation while members are
    deployed and serving their country in dangerous locations around the
    world. Military personnel serving in Operation Enduring Freedom and
    Operation Iraqi Freedom (OEF/OIF) in a designated combat zone, as well
    as members serving in direct support of these operations, receive
    combat zone tax relief benefits that exclude all pay of our enlisted
    members and most of officers' pay from Federal income tax. These
    servicemembers also receive $225 per month in Hostile Fire/Imminent
    Danger Pay, and those who have dependents receive an additional $250
    per month in Family Separation Allowance. Additionally, members
    assigned in Iraq and Afghanistan qualify for Hardship Duty Pay (HDP)-
    Location at the rate of $100 per month, and $105 per month in
    incidental expense allowance.
        The Department is grateful to Congress for its continued support of
    Assignment Incentive Pay (AIP) as a flexible and responsive means for
    Services to appropriately compensate members who are called on to
    extend their service in demanding assignments. Continuing our
    commitment to ensuring appropriate compensation for our combat
    warriors, we urge Congress to support the Department's request for more
    flexible tools with which to manage the deployment of servicemembers.
    We request authorization to modify the definition of deployment,
    eliminate statutory thresholds and management oversight mechanisms,
    repeal a currently-suspended requirement to pay High Deployment
    Allowance and replace it with compensation from HDP, and increase the
    maximum allowed rate for HDP from $750 to $1,500.
        As follow-on to a 2001 comprehensive report to Congress on the
    Uniformed Services Former Spouses Protection Act (USFSPA), the
    Department is requesting Congress' support for a balanced package of
    proposed improvements for both military members and former spouses. Our
    USFSPA proposals are grouped into four major areas: retirement pay;
    Defense Finance and Accounting Service (DFAS) improvements; procedural
    improvements; and Survivor Benefit Plan (SBP). Proposals include
    initiatives to prohibit court-ordered payment of retired pay prior to
    retirement; compute divisible retired pay based on rank and years of
    service at divorce; allow direct payments from DFAS in all cases (not
    just cases with more than 10 years of marriage); and allow split of SBP
    between former and current spouses.
        We must continue to work together to ensure we honor our Active and
    Reserve members with a competitive compensation package. Successful
    execution of the global war on terror demands no less. Therefore, the
    Department discourages the expansion of entitlements and the creation
    of new ones that do not improve recruiting, retention, or readiness in
    a manner commensurate with their cost.
        Last year, the Defense Advisory Committee on Military Compensation
    reviewed matters pertaining to military compensation, examining
    approaches to balancing military pay and benefits and incentive
    structures and made suggestions for improvements that they believe will
    assist us in meeting our recruiting and retention objectives. We are
    using the findings and recommendations of the Advisory Committee's
    report as a starting point for the Tenth Quadrennial Review of Military
    Compensation (QRMC), mandated by statute.
        The Tenth QRMC was tasked to pay particular attention to: (1) the
    potential for consolidation of special pays and bonuses into fewer,
    broader, and more flexible authorities; and (2) the potential need for
    enactment of broader and more flexible authorities for recruitment and
    retention of uniformed services personnel. Currently, the large number
    of special and incentive pays available dilutes the effectiveness of
    the pays to influence behavior, and makes the system unwieldy and
    difficult to administer and oversee. The degree of flexibility among
    the many different pays also varies. Most special and incentive pays
    are narrowly focused, with strict statutory limits on how they are
    disbursed. The QRMC is recommending a proposal which replaces the more
    than 60 pays that now address relatively narrow staffing issues with 8
    pay categories designed to cover a broad range of personnel needs.
    Defense Travel Management Office
        Since its establishment in February 2006, the Defense Travel
    Management Office (DTMO) has made major strides toward consolidating
    all DOD commercial travel services in one place--a first for the
    Department. The DTMO serves as the one authoritative, responsible
    agency for commercial travel within the DOD and as a ``single face''
    both within the Department and to industry. Primary functions are
    commercial travel management, travel policy and implementation, travel
    card program management, travel guidance and procedures, and functional
    oversight for the Defense Travel System.
        Numerous benefits result from having one authoritative, responsible
    agency for commercial travel within the Department. DTMO implemented a
    change management process that includes governance boards to set and
    execute the vision for commercial travel and provide the Services and
    Defense agencies with a forum for articulating their travel needs. This
    is a smart business approach, ensuring consistency and integration of
    focus, policy and implementation across the Department and in dealings
    with industry. We are confident that these efforts will enable us to
    provide the best service to the traveler while ensuring the best value
    for the government.
    Sexual Assault Prevention
        The Department's Sexual Assault Prevention and Response (SAPR)
    Program has made great progress during the past year. The DOD Sexual
    Assault Prevention and Response Office (SAPRO) has been established and
    is fully staffed with permanent government employees.
        The Department's implementation instruction (DODI 6495.02) was
    published in June 2006. This instruction forms the framework of a
    comprehensive response structure and protocol that ensures a consistent
    level of care and support worldwide for military victims of sexual
    assault. Both the Directive, published in 2005, and Instruction
    implement a fundamental change in how the Department responds to sexual
    assault with a confidential reporting structure for victims of sexual
    assault. This removes a major barrier to reporting by enabling victims
    to receive medical care without necessarily initiating a criminal
    investigation. Confidential, or restricted, reporting has been
    available since June 2005. After our first full year of restricted
    reporting, analysis indicates that the program is meeting our objective
    of increasing victim access to care and support.
        The Department has an aggressive SAPR training and education
    program that ensures training is conducted throughout every
    servicemember's career at both the unit level and at all professional
    military education programs. SAPRO conducted a worldwide Sexual Assault
    Response Coordinators (SARC) Conference in June 2006, training more
    than 350 SARCs from installations around the world. The military
    Services have implemented ambitious training programs to meet this
    requirement and to provide trained SARCs at all major installations.
    Overall, the Services have provided prevention training to over 1
    million active duty servicemembers. This aggressive training and
    outreach program, along with confidential reporting, will predictably
    result in an increase in the overall number of reported sexual assaults
    in DOD.
        The Department's next steps in 2007 will focus on continued
    guidance to the Services and oversight of their implementation of the
    SAPR program. The Under Secretary of Defense for Personnel and
    Readiness (USD(P&R)) will chair the DOD Sexual Assault Advisory Council
    in April, which is Sexual Assault Awareness Month. A Prevention Summit
    is scheduled for July 2007, which will result in a collaborative
    Service-wide prevention strategy for the military Services. SAPRO will
    conduct site visits to Service programs at selected installations. We
    will use the Defense Task Force on Sexual Assault in the Military
    Services as another source to evaluate the effectiveness of the SAPR
    program.

                                   READINESS

    Readiness Assessment and Reporting
        The Department must track the current status and capabilities of
    forces across the Department. Over the past year we have increased the
    capabilities of our new Defense Readiness Reporting System (DRRS). DRRS
    contains near real time assessments of military capabilities in terms
    of the tasks or missions that units and organizations are currently
    able to perform. These assessments are informed by the availability of
    specific personnel and equipment. Over the past year, our partnerships
    with United States Northern Command, United States Joint Forces
    Command, United States Pacific Command, and United States Strategic
    Command have produced working, scalable versions of measurement,
    assessment and force management, and contingency sourcing tools. Of
    special interest this year is our work with the Department of Homeland
    Security to develop the National Preparedness System, which will
    provide increased situational awareness and assist the Department to
    integrate and coordinate our response to domestic crisis. Development
    of DRRS will continue through 2008.
    Transforming DOD Training
        With your steadfast support, we have achieved significant advances
    in joint training and education, but more progress is urgently needed
    to prepare for complex multinational and interagency operations in the
    future. Our forces must be capable of adapting to rapidly changing
    situations, ill-defined threats, and a growing need to operate across a
    broad spectrum of asymmetric missions, including stability, security,
    transition, reconstruction, joint urban, information operations, and
    disaster response. As a result of these and other changes, the motto
    for our Training Transformation program has evolved with our
    operational experience from ``Training as We Fight'' to ``Train as We
    Operate.''
        Following the direction of the 2006 Strategic Planning Guidance, we
    conducted a Joint Training Program Review. The results of this first-
    ever review focused on joint training were approved in September 2006
    by the Deputy Secretary of Defense's Advisory Working Group which
    directed us to consolidate Joint Training Program resources into the
    Combatant Commanders Exercise Engagement and Training Transformation
    (CE2T2) program. Although ``new'' in name, the CE2T2 account simply
    consolidates existing joint training resources. In the past, dollars,
    authorities, and responsibilities were spread over many different
    organizations.
        Among the top objectives for this consolidated account is providing
    the combatant commanders with more direct control of their training and
    exercise funding. It is not new funding or program growth. We ask for
    your support of this account.
        The Department's Training Transformation Program remains focused on
    melding world-class individual Service competencies and training
    capabilities into a cohesive joint capability. We are implementing
    three joint capabilities: Joint Knowledge Development and Distribution
    Capability (joint training and education for individuals), Joint
    National Training Capability (joint unit and staff training), and Joint
    Assessment and Enabling Capability (assessments to answer the question:
    are we truly transforming training?).
        The Joint Knowledge Development and Distribution Capability (JKDDC)
    provides access to Service and DOD Agency learning management systems,
    anywhere and anytime. Populated with over 90 joint courses for
    combatant command (COCOM) staffs, training audiences in NATO,
    Partnership for Peace member nations, the Joint Force Headquarters
    States' Staff (National Guard Bureau staff) initiative, Individual
    Augmentee Training classes, and other programs, the JKDDC Web site
    addresses prioritized COCOM needs and fills individual joint knowledge
    gaps and seams. We have fully integrated JKDDC with Defense Knowledge
    Online and existing U.S. Joint Forces Command Joint Warfighting Center
    programs, including the NATO School. Later this year we expect to
    extend the reach to new learning audiences through the Internet and
    other portals. Two representative courses we provide individuals are
    the Joint Planning Orientation and Joint Interagency Coordination
    Group.
        Joint National Training Capability (JNTC) is providing realistic
    distributed joint context to the Services' and COCOMs' training sites
    and events. JNTC has already moved from discrete ``throw-away after one
    use'' events to a more persistent ``stay-behind'' capability and a
    supporting communications infrastructure. Service and COCOM training
    sites and training events are now being accredited to conduct specific
    Joint tasks and technically certified to Joint standards. Twenty-one
    Service and combatant commander training programs are accredited, 23
    sites are certified, and more are scheduled for this fiscal year. We
    continue to decrease planning time for joint training and mission
    rehearsal exercises. We are distributing joint training over large
    distances to the right training audience for their specific mission
    needs. Jointness is moving from the strategic to the tactical level--
    all DOD operations in the global war on terror are joint. We are
    creating a Live, Virtual, Constructive (LVC) environment that supports
    efficient participation of joint forces in appropriate training across
    the country and around the world. This year we are expanding this
    environment to include Australia's Defence Training and Experimentation
    Network. When not utilized for joint training, this LVC environment is
    being used by the Services to improve their own title 10 training
    capability. JNTC will also continue interoperability initiatives such
    as the Open Net-centric Interoperability Standards for Test and
    Training and state-of-the-art PC-enabled models and simulations.
        Our Joint Assessment and Enabling Capability creates a performance
    assessment architecture and uses it as a starting point for the conduct
    of a block assessment and balanced scorecard assessment. Our first
    block assessment will serve as a baseline set of metrics to measure
    Training Transformation. Upon completion of these assessments and
    outcome measurements of Training Transformation missions and programs,
    we will adapt and revise our strategic guidance and programmatics.
        Because of your support and these past investments in joint
    training capability, our deploying forces are now able to be trained
    for their upcoming assigned joint force missions prior to their
    employment in the joint operations areas. Such agility, immediately
    responsive to operational lessons learned from theater and changing
    mission taskings, would not have been achievable a few years ago.
        Training Transformation also focuses on improving DOD's integrated
    operations with other U.S. Government agencies, among levels of
    government, and with our multi-national partners. Integrating DOD
    capabilities better with those of other Federal entities, including the
    Departments of State and Homeland Security, leverages all the elements
    of national power to achieve national security objectives.
        Our Advanced Distributed Learning (ADL) initiative is a key enabler
    of Training Transformation. The initiative is leading the way in
    developing interoperability standards for online learning. While the
    standards are now required within the DOD, they are also being adopted
    as a global standard in education and training. We have formed
    partnerships with other Federal agencies as well as other countries at
    their request, to include Canada, the United Kingdom, Australia, Korea,
    and a consortium of 13 Latin American countries. ADL works to form a
    common framework for sharing education and training programs with
    interagency and international partners.
        Training Transformation has created a capability to tailor
    distributed training to deploying forces. We have transformed our
    training by extensive use of rigorous and relevant mission rehearsal
    exercises based upon and tailored to the combat conditions the unit
    will experience once deployed in theater. Our priority for joint
    training is to establish mission rehearsal exercises for the deploying
    force. Exercise Unified Endeavor 07-1 this past fall prepared Army's
    82nd Airborne Division headquarters and staff for their current
    rotation in Afghanistan to head Combined Joint Task Force 76 (CJTF 76)
    in OEF operations. The exercise inserted near real-time lessons learned
    from the Afghan theater of operations to improve the relevancy and
    rigor of the training. Tailored, realistic joint training tasked
    members of the training audience to conduct joint operations while
    coordinating air, ground, and space forces with the ongoing ground
    campaign and all its related cultural exigencies. The CJTF 76
    leadership also had to work with senior and staff-level representatives
    from NATO, coalition, Afghan, Federal (i.e., Department of State, Drug
    Enforcement Agency, and others), private volunteer, and non-
    governmental organizations during each phase of the training and
    mission rehearsal exercise--many of whom deployed to the training
    venues from their in-theater bases. Few of these joint training and
    mission rehearsal capacities and capabilities were in practice pre-
    Training Transformation just 4 years ago.
    Defense Mishap Reduction Initiative
        As a world-class military, we do not tolerate preventable mishaps
    and injuries. The direct cost of mishaps is over $3 billion per year,
    with estimates of total costs up to $12 billion.
        We have rededicated ourselves to achieve our 75 percent accident
    reduction goal and are aggressively working toward it. For example, the
    Marine Corps has reduced its civilian lost day rate by 62 percent and
    last fiscal year the Air Force achieved the best aviation class ``A''
    mishap rate in its history.
        To get to the next level in military and civilian injury
    reductions, safety is now a performance element under the new National
    Security Personnel System (NSPS) and in military evaluations. The
    Department is implementing Occupational Safety and Health
    Administration's Voluntary Protection Program (VPP) at over 80
    installations and sites. This program brings together management,
    unions, and employees to ensure safe working conditions. VPP and our
    other accountability programs have the highest visibility and support
    within the Department.
        We also believe that the use of technologies to address many safety
    issues has a demonstrated cost benefit. Safety technologies include
    systems and processes. For example, we are pursuing the Military Flight
    Operations Quality Assurance process to reduce aircraft flight mishaps.
    We are exploring the use of data recorders and roll-over warning
    systems as tools to help drivers avoid wheeled vehicle accidents. Our
    plan is for DOD components to include these and other appropriate
    safety technologies as a standard requirement in all future acquisition
    programs.
    Range Sustainment
        Continued and assured access to high-quality test and training
    ranges and operating areas plays a critically important role in
    sustaining force readiness. The ability to test and train effectively
    under realistic conditions, and to adapt our training to meet real-
    world contingencies, are fundamental requirements. Training
    transformation calls for significant advancements in the joint nature
    of training and a major change in the way we use our existing training
    infrastructure.
        Ongoing reassignments based on the recent Base Realignment and
    Closure (BRAC) round, the return of forces to the U.S. from Europe and
    Korea, and anticipated increases in Army and Marine Corps total force
    end strength all point to growing demands on testing and training
    assets. Joint mission requirements also add to training complexity.
    However, the supply of land, air, and sea space and frequency spectrum
    we use to test and train effectively is not unlimited, and many other
    interests compete for use of these national resources. The confluence
    of these competing trends makes it clear that encroachment remains a
    powerful challenge to military readiness, and requires a comprehensive
    and continuing response.
        The DOD has mobilized to counter encroachment. Through the DOD
    Range Sustainment Integrated Product Team, the Department seeks to
    mitigate encroachment's impacts and to ensure the long-term
    sustainability of military readiness and the resources entrusted to our
    care. Congressional action on a number of DOD legislative provisions
    has provided increased mission flexibility, and at the same time has
    enabled improved environment management on our test and training
    ranges. The Department is now actively focusing beyond its fence lines
    to engage with local, State, regional, and national stakeholders in
    order to address concerns and build effective partnerships that advance
    range sustainment.
        As we move forward, we are emphasizing cooperative approaches to
    sustainment, such as the acquisition of buffers (lands and easements)
    from willing sellers around our ranges, conservation partnering with
    nongovernmental organizations, increased interagency and multi-state
    coordination on cooperative Federal land use, improved sustainment
    policy and planning for overseas training with our allies, and more
    integrated development of information and decisionmaking tools for
    range management. These initiatives clearly build on our past efforts,
    and will emplace enabling capabilities, tools, and processes to support
    range sustainment goals well into the future.

                          FOREIGN LANGUAGE INITIATIVES

    Foreign Language and Regional Expertise Capabilities
        To win the long war the Department must embrace and
    institutionalize foreign language and regional expertise into DOD
    doctrine, planning, contingencies, organizational structure, and
    training, as the QDR directs. The Defense Language Transformation
    Roadmap provides broad goals that will ensure a strong foundation in
    language and cultural expertise, a capacity to surge, and a cadre of
    language professionals. We are taking deliberate steps to incorporate
    language and regional expertise as core competencies into the Total
    Force. Policies, practices and funding will ensure a base of officers
    possessing skills in strategic languages, such as Arabic, Chinese,
    Persian/Farsi, and Urdu.
    Fiscal Year 2007 Current Capabilities
        Through guidance in the Roadmap, we are close to completing self-
    reported screening of military personnel. The Department learned that
    it had a significant in-house capability not apparent to our management
    systems. Even though our assessment is not yet complete, as of the
    beginning of 2007, the Department had 140,653 Active component; 76,843
    Reserve component; and 24,193 civilian members of the Total Force who
    professed foreign language skills. Of those 8,630 are Arabic speakers,
    6,929 are Chinese speakers and 7,282 are Korean speakers. Until we
    undertook this assessment, the Department did not have any way to
    identify this capability.
        The Defense Language Institute Foreign Language Center (DLIFLC)
    currently enrolls 4,000 students a year in 24 language programs.
    DLIFLC's budget climbed from $77 million in fiscal year 2001 to $203
    million in fiscal year 2007. One of the major DLIFLC programs, launched
    in fiscal year 2006, is the Proficiency Enhancement Program (PEP). PEP
    changed the basic foreign language course by reducing the student to
    instructor ratio, increasing the number of classrooms, creating
    improved and expanded curricula, and expanding overseas immersion
    opportunities. PEP is designed to graduate students at increased
    proficiency levels.
        Since 2001, the DLIFLC dispatched 300 Mobile Training Teams to
    provide targeted training to more than 32,000 personnel. Deployed and
    deploying units received over 200,000 Language Survival Kits (mostly
    Iraqi, Dari, and Pashto). Field support modules outlining the geo-
    political situation, cultural facts, and fundamental language skills,
    key phrases and commands are available for 21 countries on the DLIFLC
    Web site. There are 127 online basic and specialized language survival
    courses. Computer-based sustainment training is available as well via
    the Global Language Online Support System (gloss.lingnet.org) which
    supports 12 languages and 6 more language sustainment courses are
    available on the DLIFLC LingNet Web site (www.lingnet.org).
    Quadrennial Defense Review
        The QDR provides approximately $430 million through the Future
    Years Defense Program for initiatives to strengthen and expand our
    Defense Language Program. These initiatives include technology,
    training and education, and recruitment. The QDR targets officer
    candidates for foreign language training, with regional and cultural
    training to be embedded in follow-on professional military education.
    It funds the enhancement of the three Service Academies' language
    training of cadets and midshipmen in the strategic languages; grants to
    colleges and universities with Reserve Officers' Training Corps (ROTC)
    programs to incentivize teaching of languages of strategic interest to
    the Department; increased grants to expand the National Security
    Education Program, which provides civilians scholarships and
    fellowships to undergraduate and graduate students in critical
    languages to national security; and expansion and continuation of the
    Army's successful 09L Interpreter/Translator recruiting program. The
    QDR also directed funding for the development of a pilot Civilian
    Linguist Reserve Corps, now renamed The Language Corps; increased
    foreign language proficiency pay based on language in the NDAAs for
    Fiscal Year 2005 and Fiscal Year 2006; enhanced technology at the
    DLIFLC; and centralized accession screening to identify personnel with
    language aptitude.
    Pre-accession Language Programs
        Pre-accession language training will focus the Department's effort
    on building language skills in future officers prior to commissioning.
    The three Service Academies expanded study abroad, summer immersion and
    foreign academy exchange opportunities; and added instructor staff for
    strategic languages. The United States Military Academy and the United
    States Air Force Academy now require all cadets to complete two
    semesters of language study; the United States Naval Academy requires
    its nontechnical degree-seeking midshipmen to take four semesters of
    language study. The United States Military Academy and the United
    States Air Force Academy also established two new language majors of
    strategic interest in Arabic and Chinese. The United States Naval
    Academy, for the first time in history, will offer midshipmen the
    opportunity to major in a foreign language. In fiscal year 2007,
    Service Academies received $25.57 million to develop and implement
    their language programs, including curriculum development and hiring of
    staff and faculty to teach more strategic languages.
        The academies are aggressively pursuing increased opportunities for
    their cadets and midshipmen to study abroad and currently have programs
    available in 40 countries. Four-week summer language immersion programs
    are offered as well as semester exchanges with foreign military
    academies. This program has also expanded to semester abroad study
    programs at foreign universities. The NDAA for Fiscal Year 2007 allows
    the Academies to expand foreign academy exchanges from 24 exchanges to
    100 exchanges per academy per year, and this congressional support is
    greatly appreciated.
        ROTC cadets and midshipmen also have expanded opportunities to
    learn a foreign language. The Air Force and Navy often have ROTC
    students participating along with their academy counterparts during
    familiarization and orientation travel opportunities.
        Of the 1,321 colleges and universities with ROTC programs, 1,148
    offer languages. Significantly, many of the languages we need for
    current operations are not widely offered at this time. We are
    beginning a pilot program to provide grants to select colleges and
    universities with ROTC programs to incentivize them to offer foreign
    language courses in languages of strategic interest to the Department
    and the National security community. Increasing the number of less
    commonly taught languages in college curricula remains a challenge in
    which our Senior Language Authority is actively engaged.
    Army Interpreter/Translator (09L)
        The Army's 09L Interpreter/Translator program is a true success
    story. The program started as a pilot but was so successful in
    generating over 500 Arabic and Afghani speaking United States soldiers
    that the Army made it permanent. In 2006, the Army formally established
    the 09L Interpreter/Translator as a military occupational specialty
    that will have a career path from recruit through sergeant major. More
    than 317 heritage speakers have successfully graduated and deployed; an
    additional 175 personnel are in the training pipeline. The Army
    continues to expand and develop the program in response to the positive
    feedback from the commanders in the field. The QDR provides $50 million
    over a 5-year period, from fiscal year 2007 to fiscal year 2011, to
    further expand this program.
    Foreign Area Officers
        The Department has spent a great deal of effort in managing its
    regional expert cadre--the Foreign Area Officers. DOD Directive
    1315.17, Foreign Area Officer (FAO) Programs, updated in April 2005,
    established a common set of standards for FAOs. Most important, the new
    policies require all of the Services to establish FAO programs that
    both meet the unique demands of the Services and adhere to a common,
    joint set of standards to support joint operations. FAOs shall be
    commissioned officers with a broad range of military skills and
    experiences; have knowledge of political-military affairs; have
    familiarity with the political, cultural, sociological, economic, and
    geographical factors of the countries and regions in which they are
    stationed; and have professional proficiency in one or more of the
    dominant languages in their regions of expertise. In fiscal year 2007,
    over 150 new Foreign Area Officers are scheduled to be developed and in
    the next 5 years over 800 new FAOs will meet a common set of training
    guidelines, developmental experiences, and language and regional
    expertise standards.
    Bonus Pay
        In order to encourage servicemembers to identify, improve, and
    sustain language capability we implemented a new Foreign Language
    Proficiency Bonus (FLPB) policy, and, with the support of Congress,
    increased the proficiency bonus from $300 maximum per month, up to
    $1,000 maximum per month for uniformed members. We are currently
    completing the DOD Foreign Language Proficiency Bonus policy to align
    payment for Reserve and Active components by increasing Reserve
    proficiency pay ceiling from $6,000 to $12,000, consistent with section
    639 of the NDAA for Fiscal Year 2006. The maximum FLPB rate increased
    from $150 to $500 per pay period for eligible DOD civilian employees
    performing intelligence duties. DOD policy allows payments of up to 5
    percent of a civilian employee's salary for those civilians who are
    assigned to nonintelligence duties requiring proficiency and who are
    certified as proficient in languages identified as necessary to meet
    national security interests.
    National Security Language Initiative
        At the national level, we were proud to be part of the team for the
    President's announcement of the National Security Language Initiative
    (NSLI). The NSLI has three broad goals: expand the number of Americans
    mastering critical languages at a younger age, increase the number of
    advance-level speakers of foreign languages, and increase the number of
    foreign language teachers and their resources. The DOD will support
    NSLI through our National Security Education Program by adding
    fellowships to increase the number of graduates with proficiency in
    Arabic, Chinese, Persian, Hindi and central Asian languages. The
    National Flagship Language Initiative (NFLI) serves as an example of
    how NSLI links Federal programs and resources across agencies to
    enhance the scope of the Federal Government's efforts in foreign
    language education. For example, the NFLI is leading the way in
    developing model kindergarten-through-college (K-16) program that
    creates a language pipeline for students to achieve higher levels of
    language proficiency in our education system. We launched a Chinese K-
    16 pipeline with the University of Oregon/Portland Public Schools in
    September, 2005. We have also awarded a grant to Ohio State University
    to implement a State-wide system of Chinese K-16 programs. Finally, we
    awarded a grant to Michigan State University to develop an Arabic K-16
    pipeline project with the Dearborn, Michigan, school district.
        We are also implementing The Language Corps, which will organize a
    cadre of individuals with high levels of language proficiency in less
    commonly taught languages, who agree to be available when needed by the
    Nation. A 3-year pilot has been initiated with a major marketing and
    recruitment plan as we seek to meet our goal of 1,000 Language Corps
    members.

                       THE DEFENSE HUMAN CAPITAL STRATEGY

        Pursuant to the recommendations in QDR 2006, the USD(P&R) appointed
    a Program Executive Officer for the Human Capital Strategy (PEO/DHCS)
    in June 2006. The PEO/DHCS is responsible for developing strategies for
    how to manage the entire workforce (Active and Reserve military,
    civilian, and contractor) of the DOD for the long term. This governing
    structure begins with an Overarching Integrated Product Team (OIPT),
    works through the Defense Human Resources Board (DHRB), and reports to
    the Deputy's Advisory Working Group (DAWG). The USD(P&R) chairs the
    OIPT; membership includes others from within P&R, Military Department
    Assistant Secretaries for Manpower and Reserve Affairs, as well as the
    J-1 from the Joint Staff.
        The most essential element of all human capital strategies is
    inventory management. Effective inventory management requires several
    critical steps:

             Determination of the desired age/skill/experience mix
            (career structure) that is most conducive to performing the
            organization's tasks now and in the future;
             Appropriate Force Generation to attract the right
            personnel to execute the organization's strategies;
             Executing Force Development with a functioning
            education strategy that combines education, formal training,
            and on-the-job learning, with the right instructors, trainers,
            and mentors;
             Effective Force Management with fair and workable
            sorting tools that allow for the identification and proactive
            management of the three most important components of the
            workforce: the main body of future workers who will carry most
            of the responsibility for producing the essential services of
            the organization; that group of lower performers who will not
            meet the organization's standards but which must be selected
            out at the earliest possible point in their careers; and that
            essential minority which shows potential for senior leadership
            and which must be selected and groomed through special career
            management and training;
             Career paths and promotion systems that are fair and
            balanced while also allowing the critical sorting functions to
            be properly incentivized and performed on a timely basis;
             A compensation and benefit structure that allows the
            organization to attract and retain a critical mass of
            productive personnel in a cost-effective manner, which means
            being responsive to the demands and desires of the workforce;
             A retirement package that aligns incentives for
            individuals with outcomes that are most cost-efficient and
            strategically effective for the organization while being
            compatible with the known preferences of the workforce;
             The ability to shape the workforce rapidly and
            flexibly when demands for the organization's services are
            variable, either due to short term exigencies or longer term
            structural changes in demand, organizational strategies,
            technologies, workforce's preferences, or competitive pressures
            in the labor market.

        DOD's workforce is quite complex, consisting of several
    complementary and sometimes overlapping elements. Active duty military
    must work with Reserve component military, and with civilians and
    contractors.
        On the active duty side, experience has shown that the tools we
    have to shape the force through recruiting, training, assignments,
    promotions, compensation, benefits, and retirement are all adequate in
    a steady-state, peace-time setting. However, it is a management system
    with limited flexibility, built on notions of perceived fairness and
    equity, that is not readily adaptable to the realities of military
    inventory requirements: the system is very cumbersome when we must grow
    or decrease total authorizations in any significant numbers, and the
    force needs to be made more robust and cost effective in meeting short-
    term contingency demands that are likely to continue during the present
    long war. For the future, changing and variable demands will continue,
    and technological changes, along with severe pressure from an ever more
    competitive labor market, will require imaginative rethinking and
    restructuring of many military occupations.
        This future will demand careers of different lengths, different
    career patterns, different grade structures, different training
    strategies--and therefore considerably more flexibility across Services
    and occupations in how to apply and use force shaping tools to
    construct effective and cost-efficient Active duty forces that attract
    and retain the best qualified personnel. Similar changes will be
    required on the Reserve side.
        For DOD civilians, the NSPS allows managers to take constructive
    steps to match the workforce to the demands of the workplace. Equally
    important, we must develop methods for selecting and grooming young
    civilians for future senior leadership positions. DOD needs to design
    attractive career paths that allow personnel to plan their futures
    better, and not just think of a career as a succession of different
    jobs that happen to become available at random intervals--as is
    presently the case for many civilian workers.

                             THE DOD CIVILIAN FORCE

    Human Capital Planning
        DOD civilian employees have supported the global war on terror here
    and on the front-line of battle and helped build democracies in
    Afghanistan and Iraq. They are a critical component as DOD works with
    the Department of State to place expanded Provincial Reconstruction
    Teams in Iraq. Just as agile military forces are needed to meet a
    mission characterized by irregular, catastrophic and disruptive
    challenges, the Department needs agile and decisive support from our
    DOD civilians. It is only through the integration of DOD civilian
    employees that we can realize the potential of a Total Force. At the
    same time, it is important to ensure that benefits remain balanced and
    commensurate with the commitments we are requesting our DOD civilians
    to make.
        The Department civilian strategic human capital planning focuses
    human capital investments on long-term issues. Guiding principles are
    continually reviewed and refreshed in the Department's Human Capital
    Strategic Plan (HCSP). Our 2006-2011 HCSP recognizes the need to
    refocus civilian force capabilities for the future--a civilian
    workforce with the attributes and capabilities to perform in an
    environment of uncertainty and surprise, execute with a wartime sense
    of urgency, create tailored solutions to multiple complex challenges,
    build partnerships, shape choices, and plan rapidly.
        Our HCSP is based upon the 2006 QDR. As noted earlier, the QDR
    calls for an updated, integrated human capital strategy for the
    development of talent that is more consistent with 21st century
    demands. As a human capital strategy, it aims to ensure DOD has the
    right people, doing the right jobs, at the right time and place, and at
    the best value. The HCSP is delineated by a DOD-wide set of human
    resources goals and objectives that focus on leadership and knowledge
    management, workforce capabilities, and a mission-focused, results-
    oriented, high-performing, diverse workforce. These goals and
    objectives incorporate a competency-based occupational system, a
    performance-based management system, and enhanced opportunities for
    personal and professional growth.
        The NSPS provides the mechanism for implementation. This modern,
    flexible human resources management system improves the way DOD hires,
    compensates, and rewards its civilian employees, while preserving
    employee protections and benefits, veterans' preference, as well as the
    enduring core values of the civil service. NSPS provides a performance
    management system that aligns performance objectives with DOD's mission
    and strategic goals.
        In April 2006, the Department began implementing the human
    resources provisions of NSPS and converted approximately 11,000 non-
    bargaining unit employees to the new system, followed by 66,000 in
    October 2006 through February 2007. This spring, an additional 35,500
    will transition to NSPS, for a total of approximately 113,000 employees
    functioning in this results-oriented, performance-based system. The
    Department placed great emphasis on communication and training--both
    were critical to our transition plan. We wanted to ensure employees and
    supervisors were fully informed and ready. As of February 2007, more
    than a half million instances of training have occurred on the
    functional elements of NSPS, performance management, as well as
    behavioral skills necessary for an effective transition.
        The initial 11,000 employees recently completed the first appraisal
    cycle under the performance management system. As a result of feedback
    we received from our workforce throughout the first cycle, we are
    already making some adjustments. For instance, both supervisors and
    employees expressed the need for additional training on writing job
    objectives and self assessments. As a result, we expanded our training
    in both of these areas to facilitate these important aspects of the
    performance management system. To complement the immediate feedback we
    received, we are developing a comprehensive plan for assessment and
    longer term evaluation of the system.
        While a lawsuit filed by some unions resulted in the labor
    relations, adverse actions, and appeals provisions being enjoined, the
    Department moved forward with implementing those elements of the human
    resources management system that were not enjoined (classification,
    compensation, performance management, staffing, and workforce shaping
    provisions). The Department elected to implement these provisions to
    nonbargaining unit employees until the litigation concerning the other
    parts of NSPS is resolved. We expect a decision on the appeal in early
    2007.
        We will continue to use a spiral approach to incrementally phase-in
    the rest of the eligible DOD workforce over the subsequent 2 to 3
    years, upgrading and improving NSPS as we go forward. We are currently
    in the early stages of designing NSPS for our blue collar workforce and
    met with our unions to seek their input into the design. We will
    continue to collaborate with the unions as we move forward with NSPS
    design and implementation.
    Acquiring, Developing, and Retaining Civilians
        The Department's civilian workforce supports DOD's national
    security and military missions. Technological advances, contract
    oversight, and complex missions have generated the need for more
    employees with advanced education and more sophisticated technical
    skills. Additionally, there must be a very active campaign to recruit,
    train, and develop a diverse workforce. We take seriously the
    responsibility to foster and promote an environment that is attractive
    to individuals from all segments of society.
        In 2005, the Department launched the Hiring Heroes campaign to
    reach out to the injured and disabled men and women who fought and
    served on behalf of our Nation. The Department offers over 700 diverse,
    challenging, and rewarding occupations for those veterans who want to
    continue to serve their country as DOD civilian employees. The
    Department is committed to providing disabled veterans who want to
    serve our country as a DOD or Federal civil servants the opportunity to
    do so. The Hiring Heroes campaign demonstrates this commitment. The
    Department has hosted eight Hiring Heroes career fairs at various major
    medical facilities, including Walter Reed and Brooke Army Medicals
    Centers, with over 1,600 servicemembers and their spouses in
    attendance. Six additional events are planned for 2007. We also
    maintain the Defense Web site specifically designed for our disabled
    veterans--www.DODVETS.com. This web portal serves as a resource of
    employment information for veterans, their spouses, and managers.
    Through our efforts, many servicemembers have been offered positions at
    various DOD and Federal agencies, but more important, they have been
    exposed to a network of both DOD and Federal recruiters dedicated to
    helping them transition back to productive employment where and when
    they are ready. We continue work with other Federal agencies, including
    the Department of Veterans Affairs (VA) and the DOL, to provide job
    training, counseling, and reemployment services to seriously injured or
    wounded veterans.
        We have dedicated an office within the Department to help us
    transform the way we attract and hire talented civilian employees.
    Under its lead, we have developed a comprehensive outreach program with
    colleges, universities and professional and heritage associations;
    reenergized our branding and marketing materials; and revamped our Web
    site to align with the interests of those whom we are trying to
    attract. Our nationwide recruitment campaign takes us to college and
    university campuses where we personally invite talented individuals to
    serve the Department. Since the fourth quarter of fiscal year 2006
    through the end of February 2007, our DOD recruiters made 31
    recruitment visits. An additional 26 visits are planned through fiscal
    year 2007, budget permitting. In one of these visits alone, the
    Department made 60 job offers to engineering students, primarily of
    Hispanic origin. Efforts such as these will help ensure the Department
    has the diverse, talented workforce it needs to meet the challenges of
    the 21st century.
        The Department launched another innovative program in fiscal year
    2007, known as the DOD Student Training Academic Recruitment program.
    Under this program, DOD hired two honors level students, located at the
    University of Puerto Rico Mayaguez and at Michigan Tech University. The
    students are responsible for developing and executing a marketing plan,
    through which students with DOD mission critical skills are made aware
    of and are encouraged to consider employment with the Department. We
    continue to leverage technology including, importantly, the Internet,
    to educate and interest talent from a variety of sources. We have
    recently updated our Web site with vignettes of current Department
    employees, who discuss their work and the satisfaction they realize
    from it, as well as the benefits of working for the Department. We
    believe these testimonials will further our efforts to have the
    Department viewed as an ``Employer of Choice''.
        Under the Office of Personnel Management's new ``Career Patterns''
    initiative, the Department has begun a comprehensive analysis of our
    workforce to identify the recruitment strategies that will enable the
    Department to recruit and retain the talent we need for the 21st
    century. Focusing first on our mission critical occupations, we are
    analyzing the occupational demographics and are developing recruitment,
    compensation and work life initiatives, which address the many
    dimensions of our applicant candidate pool. In direct support of this
    initiative, the Department has established policies on proficiency pay
    for positions requiring language, on new approaches to telework, and on
    new appointing authorities for scientists and mathematicians.
        As the Chair of the Federal Chief Human Capital Officer's
    Subcommittee for Hiring and Succession Planning, the USD(P&R)
    personally works with a number of other Federal agencies and the Office
    of Personnel Management to streamline and improve the Federal hiring
    process. The subcommittee has made a number of recommendations, the
    benefits of which we hope to see over the next several years.
        Workforce planning takes on a special importance with the expected
    exodus of Federal employees over the next decade. Significant to this
    equation are DOD career Senior Executive Service (SES) members, 67
    percent of whom are eligible to retire in 2008. Recently, P&R hosted a
    DOD Diversity Summit for key public and private sector personnel to
    discuss possible barriers to diversity in DOD executive development
    processes and to identify successful practices in other organizations
    that may have transferability to DOD. We also continue to conduct
    outreach programs in various parts of the country in an effort to
    inform students about our career opportunities and to encourage them to
    enter academic programs that will help prepare them for such careers.
        Our HCSP ensures the continuity of world class, civilian leaders
    who are fully capable of leading DOD's efforts within a larger national
    security context. To meet this goal, the Department launched an
    initiative aimed at the deliberate identification, development,
    management, and sustainment of senior executive leadership for the
    Department's 21st century requirements. This effort will expand the
    current, enduring executive leadership competencies to include
    knowledge of joint matters and building an enterprise-wide perspective
    acquired through a portfolio of diverse experiences. The definition of
    ``joint matters'' expands beyond that prescribed in Goldwater-Nichols
    Act to recognize the realities of today's multinational and interagency
    operating environment. Further, cultural awareness and regional
    expertise are part of the required core competencies. In the conflicts
    and wars faced by the Department, cultural awareness, language and
    regional expertise become key skills needed by every leader.
        To build a qualified and talented pipeline to sustain leadership
    continuity, the HCSP provides for the identification and closing of
    leadership competency gaps and strengthening of the talent pipeline to
    ensure continuity of diverse and capable leaders. To ensure the
    deliberate development of our current and future leaders, we are
    instituting a new joint civilian leader development system that will
    have at its core a future-focused framework of competencies based on
    the Office of Personnel Management Executive Core Qualifications, but
    strengthened with the DOD-unique requirements that will enable the
    Department to accomplish its national security mission in today's
    complex environment and beyond.
        Our DOD joint civilian leader development framework is being
    designed to produce world-class leaders with an Enterprise-wide
    perspective for leadership positions across the continuum from entry to
    executive level. Building upon existing programs, the framework
    ultimately will include a series of DOD-sponsored courses, programs and
    other learning opportunities, designed to meet the specific competency
    requirements of the civilian Defense leader. These opportunities will
    serve as retention incentives for high performing DOD employees and
    will also support DOD initiatives to increase diversity in the senior
    ranks.
        The Defense Leadership and Management Program (DLAMP) will be a key
    building block of the new leader development framework. Through a
    comprehensive program of Professional Military Education, formal
    graduate education, and courses in national security strategy and
    leadership, DLAMP ensures that the next generation of civilian leaders
    has the critical skills to provide strong leadership in a joint
    interagency and multinational environment. In the last few years, DLAMP
    has produced a pool of 435 individuals who have met program goals, thus
    creating a pipeline of well-qualified senior leaders for tomorrow's
    challenges.
        All existing leader development programs, including DLAMP, are
    currently under review to ensure alignment with the new competency-
    based framework and related initiatives that are under way strengthen
    the SES corps. Following implementation of program changes planned for
    fiscal year 2008, DLAMP will be renamed and its successor will become
    the senior-level program of the new joint leader development framework.
    We are confident that ensuring alignment of our programs with the DOD-
    wide competency model and best practices in private and public sector
    leader development will further position us for strong civilian
    leadership in the decades ahead.
        The Department recently reviewed the foreign national (FN) human
    resources program, which covers over 70,000 workers in some 22
    countries to ensure alignment with the Department's 21st century
    requirements. The Department employs the FN workforce under various
    laws, treaties, and international agreements, host nation labor
    policies and labor union contracts. The current FN human resources
    policies have evolved over many decades. It has been over 20 years
    since there was a comprehensive review of the FN human resources
    program. To launch the review, the Department hosted a worldwide
    conference of U.S. and FN human resources personnel. They offered
    enlightened thinking and a set of recommendations to help refine the
    current FN human resources program. The Department is considering these
    recommendations.
        The Department also has been engaged in establishing Status of
    Forces Agreements (SOFAs) with new NATO partners, such as Romania,
    Poland, Bulgaria, and the Czech Republic. As part of these SOFAs, the
    Department has developed a new framework for FN employment which will
    ensure a ready, capable and agile FN workforce.
        The Department has established and fully implemented the Pipeline
    Reemployment Program. The program enables partially recovered employees
    with job related injuries and illnesses to return to work. The program
    supports the President's Safety, Health, and Return-to-Employment
    (SHARE) initiatives by assisting each Department installation in
    reducing lost days resulting from injuries. DOD organizations will have
    resources and funding to reemploy partially recovered injured employees
    for up to 1 year. Returning injured employees to suitable productive
    duty, as soon as they are able, improves that employee's sense of value
    to the organization while minimizing the cost of workers' compensation
    disability payments. To date, the Pipeline program has returned 400
    employees to productive positions, and saved the Department
    approximately $364 million in lifetime cost charges.
    Civilian Force Shaping
        A number of initiatives influence the size and shape of the
    Department's civilian workforce. The most significant are upcoming BRAC
    actions, global repositioning of deployed military and civilians,
    competitive sourcing, and military-to-civilian conversions. The DOD is
    committed to providing comprehensive transition tools and programs to
    assist our valued employees and their families as these force shaping
    initiatives are implemented.
        Since the first BRAC round in 1988, the Department has reduced the
    civilian workforce by more than 400,000, with less than 10 percent of
    that number involuntarily separated. To mitigate the impact of these
    force shaping initiatives on our civilians, the Department has
    aggressively sought and obtained authority for several essential
    transition tools assuring that drawdowns or reorganizations are handled
    in the most efficient and humane manner possible, while ensuring we
    have the talent needed to effectively continue Department operations.
    Employees adversely affected by BRAC may be offered the opportunity to
    separate voluntarily under the Voluntary Early Retirement Authority or
    the Voluntary Separation Incentive Payment program, or both.
    Involuntarily separated employees are also eligible for a number of
    post-separation benefits and entitlements, including: temporary
    continuation of health insurance for 18 months, with the Department
    paying the employer portion of the premium; severance pay, with a lump-
    sum payment option; and, unemployment compensation.
        The Department will continue to seek regulatory and legislative
    changes to assist employees affected by these actions in transitioning
    to other positions, careers, or to private employment. We are
    continuing to establish and foster employment partnerships with Federal
    agencies, State, county and local governments, trade and professional
    organizations, local Chambers of Commerce, and private industry. For
    example, DOD is partnering with the DOL to provide BRAC installations
    outplacement assistance under their Workforce Investment System (WIS).
    The WIS consists of over 3,000 State One-Stop Career Centers prepared
    to offer assistance such as retraining, career counseling, testing, and
    job placement assistance.
    Emergency Planning
        We have taken great strides this past year to ensure we have plans
    in place to continue our operations and safeguard our employees in
    times of crisis. Significant planning has gone into Pandemic Influenza
    preparedness. We have developed a human resources practitioner guide
    for use by managers and human resource practitioners in planning for,
    and executing actions during emergencies, which include nuclear,
    chemical and biological attacks, natural disasters, as well as a
    resources practitioner guide for use during a pandemic crisis. We have
    supported this guide with exercise criteria to assess our plans and
    refine them as needed. We plan to have a series of exercises over the
    course of the next year to ensure we are prepared should an emergency
    occur, particularly a pandemic.
        As the Chair of the Federal CHCO Emergency Preparedness
    Subcommittee, the USD(P&R) is able to leverage the expertise and best
    practices of other Federal Agencies and influence the Office of
    Personnel Management to ensure new policies will meet the Department's
    needs.

                           THE MILITARY HEALTH SYSTEM

    Sustaining the Military Health Benefit
        The Department is firmly committed to protecting the health of our
    servicemembers and to providing world-class healthcare to its more than
    9 million beneficiaries.
        The fiscal year 2008 Defense Health Program funding request is
    $20.7 billion for Operation and Maintenance, Procurement and Research,
    and Development, Test and Evaluation Appropriations to finance the
    Military Health System (MHS) mission. We project total military health
    expenditures, including personnel expenses, to be $40.5 billion for
    fiscal year 2008. This includes payment of $10.9 billion to the DOD
    Medicare Eligible Retiree Healthcare Fund.
        The Department is challenged by the growing costs of the MHS. We
    need important changes in our well-regarded health benefit program,
    TRICARE, to sustain a superior benefit for the long term. We need the
    help and support of Congress to achieve this goal. Our fiscal year 2008
    budget request assumes savings of $1.9 billion from reform proposals
    (as projected last year for fiscal year 2008); we await the interim
    report of the DOD Task Force on the Future of Military Healthcare as a
    basis for dialogue with Congress on how these should be shaped.
        As the civil and military leaders of the Department have testified,
    we must place the health benefit program on a sound fiscal foundation
    or face adverse consequences. Costs have more than doubled in 6 years--
    from $19 billion in fiscal year 2001 to $39 billion in fiscal year
    2007--despite MHS management actions to make the system more efficient.
    Our analysts project this program will cost taxpayers at least $64
    billion by 2015. Healthcare costs will continue to consume a growing
    slice of the Department's budget, reaching 12 percent of the budget by
    2015 (versus 4.5 percent in 1990).
        Over the last 13 years, the TRICARE benefit was enhanced through
    reductions in co-pays, expansions in covered services (particularly for
    Medicare-eligible beneficiaries), new benefits for the Reserve
    component, and other additions, but the premiums paid by beneficiaries
    have not changed. The benefit enhancements have come at a time when
    private-sector employers are shifting substantially more costs to
    employees for their healthcare.
        The twin effect of greater benefits for DOD beneficiaries at no
    change in premiums, coupled with reduced benefits for military retirees
    employed in second careers in the private sector, has led to a
    significant increase in military retirees electing to drop their
    private health insurance and become entirely reliant on TRICARE for
    their health benefit. Some employers actively encourage this shift
    through incentives to their employees.
    Management
        The Department has initiated several management actions to use
    resources more effectively and help control the increasing costs of
    health care delivery. The MHS continues to implement a prospective-
    payment system in a phased, manageable way which provides incentive for
    local commanders to focus on outputs, rather than on historical
    budgeting. We are confident this budgeting approach will ensure our
    hospitals and clinics remain high-quality, highly efficient medical
    institutions in service to our patients.
        In addition, the MHS has recently composed a new strategic plan for
    the future. Through this plan, the MHS is strengthening its commitment
    to military medical forces, to our warfighters, and to our Nation's
    security. The MHS strategic plan takes important steps toward
    consolidating administrative and management functions across the MHS,
    and it will strengthen joint decisionmaking authorities.
        With implementation of the BRAC recommendations, the major medical
    centers in San Antonio and the national capital area will be
    consolidated. These BRAC actions provide us the opportunity to provide
    world-class medical facilities for the future while streamlining our
    health care system and creating a culture of best practices across the
    Services.
        Under the BRAC recommendations, we are also developing a medical
    education and training campus (METC) that will colocate medical basic
    and specialty enlisted training at Fort Sam Houston, Texas. By bringing
    most medical enlisted training programs to Fort Sam Houston, we will
    reduce the overall technical-training infrastructure while
    strengthening the consistency and quality of training across the
    Services.
        In the meantime, we are doing everything we can to control our cost
    growth. We are executing our new TRICARE regional contracts more
    efficiently, and we are demanding greater efficiency within our own
    medical facilities. However, one area--pharmacy--is particularly
    noteworthy. Nearly 6.7 million beneficiaries use our pharmacy benefit,
    and in fiscal year 2006, our total pharmacy cost was more than $6
    billion. If we did nothing to control our pharmacy cost growth, we
    project pharmacy costs alone would reach $15 billion by 2015.
        To address this issue we are taking every action for which we have
    authority: promoting our mandatory generic substitution policy; joint
    contracting with VA; launching a home-delivery promotion campaign; and
    making voluntary agreements with pharmaceutical manufacturers to lower
    costs.
        These efforts are working. But recent legislation passed by
    Congress and other regulations limit our ability to control costs in
    the fastest growing area of pharmacy--the retail sector. In the retail
    venue, our top 50 brand-name medications cost twice as much as the same
    drug dispensed through our military treatment facility or home-delivery
    venues.
        You can help us by allowing DOD to make appropriate changes in the
    structure of our pharmacy benefit. These changes will accelerate use of
    our new home-delivery program, enhance the use of generics, and give us
    greater leverage when negotiating with pharmaceutical manufacturers.
        Another area in which we need your assistance is restoring the
    flexibility to manage Defense Health Program resources across budget
    activity groups. Our new healthcare contracts use best-practice
    principles to improve beneficiary satisfaction, support our military
    treatment facilities, strengthen relationships with network providers,
    and control private-sector costs.
        Our civilian partners must manage their enrollee healthcare and may
    control their and the system's costs by referring more care to our
    military treatment facilities in the direct-care system. As noted
    earlier, we have implemented a prospective-payment system that creates
    the financial incentive for our military treatment facilities to
    increase productivity and reduce overall costs to the Department.
        Funds must flow freely between the military treatment facilities
    and the private sector, based on where care is actually delivered.
    Capping Defense Health Program private-sector-care funds inhibits the
    Department's ability to provide the TRICARE benefit in the most
    accessible, cost-effective setting.
        Armed Forces Health Longitudinal Technology Application (AHLTA)--
    DOD's comprehensive, global electronic health record and clinical data
    repository--significantly enhances MHS efforts to build healthy
    communities. AHLTA constructs a life-long, computer-based patient
    record for each and every military health beneficiary, regardless of
    their location, and provides seamless visibility of health information
    across the entire continuum of medical care. This gives providers
    unprecedented access to critical health information whenever and
    wherever care is provided to our servicemembers and beneficiaries. In
    addition, AHLTA offers clinical reminders for preventive care and
    clinical-practice guidelines for those with chronic conditions.
        In November 2006, the MHS successfully completed worldwide
    deployment of AHLTA, which began in January 2004, at all 138 DOD
    military treatment facilities. Additional components to AHLTA are yet
    to be unveiled, including a new inpatient module. To enhance continuity
    of care and save the taxpayers money, DOD and the VA will collaborate
    and plan to develop a joint inpatient electronic health record system
    for Active duty military personnel and veterans. A requirements study
    is presently underway.
        We are working with industry experts to design and develop the
    government requirements for TRICARE's third generation of contracts (T-
    3). The Managed Care Support Contracts are TRICARE's largest and most
    complex purchased-care contracts. Others include the TRICARE Pharmacy
    Program (TPharm), the TRICARE Dual Eligible Fiscal Intermediary
    Contract (TDEFIC), the active Duty Dental Contract, the National
    Quality Monitoring Contract, and the TRICARE Retiree Dental Contract.
        The Balanced Scorecard has guided the MHS through the strategic
    planning process over the last 5 years and helps the MHS manage
    strategy at all levels of the organization. Military treatment
    facilities remain at the core of the MHS, and the TRICARE structure
    promotes increased involvement of the military commanders in
    determining the optimum approach to healthcare delivery within each
    region. Military commanders' accountability and responsibility for
    patient care in their communities is centered on sound business
    planning and resourcing to meet their planned production.
        The three TRICARE Regional Directors are actively engaged in
    managing and monitoring regional health care with a dedicated staff of
    both military and civilian personnel. They are strengthening existing
    partnerships between the Active Duty components and the civilian
    provider community to help fulfill our mission responsibilities.
    Force Health Protection
        Force Health Protection embraces a broad compilation of programs
    and systems designed to protect and preserve the health and fitness of
    our servicemembers--from their entrance into the military, throughout
    their military service to their separation or retirement, and follow-on
    care by the VA. Our integrated partnership for health between
    servicemembers, their leaders and healthcare providers ensures a fit
    and healthy force and that the continuum of world-class healthcare is
    available anytime, anywhere.
        In 2006, we recorded remarkable war-wounded survival rates, the
    lowest death-to-wounded ratio in the history of American military
    operations, and the lowest disease non-battle injury rate. Our military
    medical personnel have performed extraordinarily on the battlefield and
    in our medical facilities in the United States. Our investments in
    people, training, technology and equipment have paid major and historic
    dividends. We have established new standards in virtually every major
    category of wartime medicine:

             Lowest Disease, Non-Battle Injury Rate. As a testament
            to our medical readiness and preparedness, with our preventive-
            medicine approaches and our occupational-health capabilities,
            we are successfully addressing the single largest contributor
            to loss of forces--disease.
             Lowest Death-to-Wounded Ratio. Our agility in reaching
            wounded servicemembers, and capability in treating them, has
            altered our perspective on what constitutes timeliness in life-
            saving care from the golden hour to the platinum 15 minutes. We
            are saving servicemembers with grievous wounds that were likely
            not survivable even 10 years ago.
             Reduced time to evacuation and definitive tertiary
            care. We now expedite the evacuation of servicemembers
            following forward-deployed surgery to stateside definitive
            care. We changed our evacuation paradigm to employ airborne
            intensive-care units. Wounded servicemembers often arrive back
            in the United States within 3-4 days of initial injury.

        Our successful efforts to prevent loss of life from battle injuries
    have consequences. Many of our wounded servicemembers have worked
    heroically to regain their skills to the greatest extent possible. Of
    particular note, among the approximately 612 individuals who have had
    major limb amputations, approximately 7 percent have returned to duty.
        Our most important preventive health measures in place for
    servicemembers today--immunization programs--offer protection from
    diseases endemic to certain areas of the world and from diseases that
    can be used as weapons. These vaccines are highly effective, and we
    base our programs on sound scientific information that independent
    experts have verified. Insect-repellant-impregnated uniforms and
    prophylactic medications also protect our servicemembers from endemic
    diseases during deployments.
        Since January 2003, environmental health professionals have
    analyzed more than 5,000 theater air, water, and soil samples to ensure
    that forces are not unduly exposed to harmful substances during
    deployments.
        We published a new DOD Instruction, ``Deployment Health,'' in 2006.
    Among its many measures to enhance force health protection is a
    requirement for the Services to track and record daily locations of DOD
    personnel as they move about in theater and report data weekly to the
    Defense Manpower Data Center. We can use the data collected to study
    long-term health effects of deployments and mitigate health effects in
    future conflicts.
        We continue to monitor the health affects of our servicemembers
    exposed to depleted uranium (DU) munitions. DOD policy requires urine
    uranium testing for those wounded by DU munitions. We also test those
    in, on, or near a vehicle hit by a DU round, as well as those
    conducting damage assessments or repairs in or around a vehicle hit by
    a DU round. Additionally, the policy directs testing for any
    servicemembers who requests it. Each servicemember returning from a
    deployment is asked about possible DU exposure. More than 2,215
    servicemember veterans of Operation Iraqi Freedom have been tested for
    DU exposures. Of this group, only nine had positive tests, and these
    were due to fragment exposures.
        Testing continues for veterans exposed to DU munitions from the
    1990-1991 Persian Gulf War. Of the 74 victims of that war in a VA
    medical follow-up study, only a quarter of them have retained DU
    fragments in their bodies. To date, none have developed any uranium-
    related health problems. This DU follow-up program is in place today
    for all servicemembers with similar exposures.
        Among the many performance measures the MHS tracks is the medical
    readiness status of individual members, both Active and Reserve. The
    MHS tracks individual dental health, immunizations, required laboratory
    tests, deployment-limiting conditions, Service-specific health
    assessments, and availability of required individual medical equipment.
    We are committed to deploying healthy and fit servicemembers and to
    providing consistent, careful post-deployment health evaluations with
    appropriate, expeditious follow-up care when needed.
        Medical technology on the battlefield includes expanded
    implementation of the Theater Medical Information Program and Joint
    Medical Work Station in support of OIF. These capabilities provide a
    means for medical units to capture and disseminate electronically near-
    real-time information to commanders. Information provided includes in
    theater medical data, environmental hazards, detected exposures, and
    such critical logistics data as blood supply, beds, and equipment
    availability.
        With the expanded use of the Web-based Joint Patient Tracking
    Application, our medical providers should have total visibility into
    the continuum of care across the battlefield, and from theater to
    sustaining base. New medical devices introduced to OIF provide field
    medics with blood-clotting capability; light, modular diagnostic
    equipment improves the mobility of our medical forces; and individual
    protective armor serves to prevent injuries and save lives.
        DOD has been performing health assessments on servicemembers prior
    to and just after deployment for several years now. These assessments
    serve as a screen to identify any potential health concerns that might
    warrant further medical evaluation. This includes screening the mental
    well-being of all soldiers, sailors, airmen, and marines in the Active
    Force, Reserves, and National Guard.
        Servicemembers receive pre-deployment health assessments to ensure
    they are fit to deploy and post-deployment health assessments to
    identify any health issues when they return. The DOD maintains
    deployment health records in the individual's permanent health record
    and centrally archives electronic copies of the health assessment for
    easy retrieval. We have an aggressive quality-assurance program to
    monitor the conduct of these assessments.
        Beginning in 2005, we added an additional health assessment, the
    post-deployment health reassessment, or PDHRA, which we conduct 3 to 6
    months after deployment. The PDHRA is designed to identify health and
    adjustment concerns that servicemembers may not notice or mention
    immediately upon the return from deployment. For the period of June 1,
    2005, to February 12, 2007, 244,933 servicemembers have completed a
    post-deployment health reassessment, with 27 percent of these
    individuals receiving at least one referral for additional evaluation.
        Mental health services are available for all servicemembers and
    their families before, during, and after deployment. servicemembers are
    trained to recognize sources of stress and the symptoms of depression,
    including thoughts of suicide, in themselves and others, that might
    occur because of deployment. Combat-stress control and mental
    healthcare are available in theater. In addition, before returning
    home, we brief servicemembers on how to manage their reintegration into
    their families, including managing expectations, the importance of
    communication, and the need to control alcohol use.
        During redeployment, we educate servicemembers and assess them for
    signs of mental health issues, including depression and Post-Traumatic
    Stress Disorder (PTSD), and physical health issues. During the post-
    deployment reassessment, we include additional education and assessment
    for signs of mental and physical health issues. The Services began
    initial implementation of this program in June 2005, and we are working
    toward Department-wide implementation.
        After returning home, servicemembers may seek help for any mental
    health issues that may arise, including depression and PTSD, through
    the MHS for Active duty and retired servicemembers, or through the VA
    for non-retired veterans. TRICARE is also available for 6 months post-
    return for Reserve and Guard members. To facilitate access for all
    servicemembers and family members, especially Reserve component
    personnel, the Military OneSource Program--a 24/7 referral and
    assistance service--is available by telephone and on the Internet. In
    addition, we provide face-to-face counseling in the local community for
    all servicemembers and family members. We provide this non-medical
    counseling at no charge to the member, and it is completely
    confidential.
        To supplement mental health screening and education resources, we
    added the Mental Health Self-Assessment Program in 2006. This program
    provides web-based, phone-based and in-person screening for common
    mental health conditions and customized referrals to appropriate local
    treatment resources. The program also includes parental screening
    instruments to assess depression and risk for self-injurious behavior
    in their children, along with suicide-prevention programs in DOD
    schools. Spanish versions of the screening tools are available, as
    well.
        Pandemic influenza represents a new threat to national security.
    With our global footprint and far-reaching capabilities, we are
    actively engaged in the Federal interagency effort to help prevent,
    detect and respond to the threat of avian influenza, domestically and
    internationally. The President's National Strategy for Pandemic
    Influenza includes the DOD as an integral component in our Nation's
    response to this threat. One example of this integrated response is
    DOD's medical watchboard Web site, established in 2006, to provide
    ready access to pandemic influenza information for DOD servicemembers,
    civilians, and their families; DOD leaders; and DOD healthcare planners
    and providers. The DOD Watchboard is linked to PandemicFlu.gov for one-
    stop access to U.S. Government avian and pandemic influenza
    information.
    Taking Proper Care of the Wounded
        The Department is committed to providing the assistance and support
    required to meet the challenges that confront our severely injured and
    wounded servicemembers, and their families.
        The Department is working on a number of measures to evaluate and
    treat servicemembers affected or possibly affected with traumatic brain
    injury (TBI). For example, in August 2006, we developed a clinical-
    practice guideline for management of mild TBI in theater for the
    Services. We sent detailed guidance to Army and Marine Corps line
    medical personnel in the field to advise them on ways to deal with TBI.
    The clinical-practice guideline included a standard Military Acute
    Concussion Evaluation form to assess and document TBI for the medical
    record. We are also conducting research in the inpatient medical area.
    Furthermore, to enhance the Periodic Health Assessment, Post-Deployment
    Health Assessment and Post-Deployment Health Reassessment, we directed
    inclusion of questions on TBI to capture data that will contribute to a
    better understanding of TBI identification and treatment. In addition,
    these questions will help identify servicemembers possibly exposed to
    events that caused TBI that were not documented at the time of
    exposure.
        Each Service has programs to serve severely wounded from the war:
    the Army Wounded Warrior Program (AW2), the Navy SAFE HARBOR program,
    the Air Force Helping Airmen Recover Together (Palace HART) program,
    and the Marine4Life (M4L) Injured Support Program. DOD's Military
    Severely Injured Center augments the support provided by the Services.
    It reaches beyond the DOD to other agencies, to the nonprofit world and
    to corporate America. It serves as a fusion point for four Federal
    agencies--DOD, the VA, the Department of Homeland Security's
    Transportation Security Administration (TSA), and the DOL.
        The Military Severely Injured Center unites Federal agencies
    through a common mission: to assist the severely injured and their
    families. The VA Office of Seamless Transition has a full-time liaison
    assigned to the center to address VA benefits issues ranging from
    expediting claims, facilitating VA ratings, connecting servicemembers
    to local VA offices, and coordinating the transition between the
    Military and the VA systems. The DOL has assigned three liaisons from
    their REALifelines program which offers personalized employment
    assistance to injured servicemembers to find careers in the field and
    geographic area of their choice. REALifelines works closely with the
    VA's Vocational Rehabilitation program to ensure servicemembers have
    the skills, training, and education required to pursue their desired
    career field. The Department of Homeland Security's TSA has a
    transportation specialist assigned to the center to facilitate travel
    of severely injured members and their families through our Nation's
    airports. The Center's TSA liaison coordinates with local airport TSA
    officials to ensure that each member is assisted throughout the airport
    and given a facilitated (or private) security screening that takes into
    account the member's individual injuries.
        The Military Severely Injured Center has coordinated with over 40
    nonprofit organizations, all of which have a mission is to assist
    injured servicemembers and their families. These nonprofits offer
    assistance in a number of areas from financial to employment to
    transportation to goods and services. Many are national organizations,
    but some are local, serving service men and women in a specific region
    or at a specific military treatment facility. Some of the many
    organizations that are providing assistance are the Wounded Warrior
    Project, the Injured Marine Semper Fi Fund, the VFW, the American
    Legion, Disabled American Veterans, the Coalition to Salute America's
    Heroes, and, of course, the Service Relief Societies. There are
    hundreds of other nonprofits who offer assistance to military families
    in general that are part of the America Supports You network
    (www.americasupportsyou.mil).
        The Department continues to sponsor Operation Warfighter (OWF), a
    temporary assignment or internship program for servicemembers who are
    convalescing at military treatment facilities in the National Capital
    Region. This program is designed to provide recuperating servicemembers
    with meaningful activity outside of the hospital environment that
    assists in their wellness and offers a formal means of transition back
    to the military or civilian workforce. The program's goal is to match
    servicemembers with opportunities that consider their interests and
    utilize both their military and non-military skills, thereby creating
    productive assignments that are beneficial to the recuperation of the
    servicemember and their views of the future. Servicemembers must be
    medically cleared to participate in OWF, and work schedules need to be
    flexible and considerate of the candidate's medical appointments. Under
    no circumstance will any OWF assignment interfere with a
    servicemember's medical treatment or adversely affect the well-being
    and recuperation of OWF participants.
        In 2006, 140 participants were successfully placed in OWF. Through
    this program, these servicemembers were able to build their resumes,
    explore employment interests, develop job skills, and gain valuable
    Federal Government work experience to help prepare them for the future.
    The 80 Federal agencies and subcomponents acting as employers in the
    program were able to benefit from the considerable talent and
    dedication of these recuperating servicemembers. Approximately 20
    permanent job placements resulted from OWF assignments upon the
    servicemember's medical retirement and separation from military
    service.
        The American public's strong support for our troops shows
    especially in their willingness to help servicemembers who are severely
    injured in the war and their families, as they transition from the
    hospital environment and return to civilian life. Heroes to Hometowns'
    focus is on reintegration back home, with networks established at the
    national and State levels to better identify the extraordinary needs of
    returning families before they return home. They work with local
    communities to coordinate government and non-government resources
    necessary for long-term success.
        The Department has partnered with the National Guard Bureau and the
    American Legion, and most recently the National Association of State
    Directors of Veterans Affairs, to tap into their national, State, and
    local support systems to provide essential links to government,
    corporate, and nonprofit resources at all levels and to garner
    community support. Support has included help with paying the bills,
    adapting homes, finding jobs, arranging welcome home celebrations, help
    working through bureaucracy, holiday dinners, entertainment options,
    mentoring, and very importantly, hometown support.
        The ability of injured servicemembers to engage in recreational
    activities is a very important component of recovery. We continue to
    work with the United States Paralympics Committee and other
    organizations so that our severely injured have opportunities to
    participate in adaptive sports programs, whether those are skiing,
    running, hiking, horseback riding, rafting, or kayaking. We are also
    mindful of the need to ensure installation Morale Welfare and
    Recreation (MWR) fitness and sports programs can accommodate the
    recreational needs of our severely injured servicemembers. At
    congressional request, we are studying the current capabilities of MWR
    programs to provide access and accommodate eligible disabled personnel.
        Regarding the recent concerns about the Walter Reed Army Medical
    Center, the Army and the Department have taken swift action to improve
    existing conditions, enhance services provided at Walter Reed, and
    identify areas meriting further study and improvement. Army leadership
    initiated immediate steps to control security, improve access, and
    complete repairs at identified facilities and sought to hold
    accountable those personnel responsible to provide for the health and
    welfare of our Nation's heroes.
        On March 1, 2007, Secretary Gates commissioned an independent
    review group (IRG) to evaluate and make recommendations on this matter.
    The IRG will conduct its work and report its findings to the Secretary
    of Defense by April 13, 2007. The report will include:

             An assessment of current procedures involved in the
            rehabilitative care, administrative processes, and quality-of-
            life for injured and ill members, including an analysis of what
            these servicemembers and their families consider essential for
            a high-quality experience during recovery, rehabilitation, and
            transition.
             Alternatives and recommendations to correct
            deficiencies and prevent them from occurring in the future.

        The Department will be relentless in its actions--engaged, action-
    oriented, and focused on making measurable improvements. Goals will be
    clear and milestones will be established. We will regularly inform the
    public and the people we serve--the soldiers, the families, military
    leaders, Congress, the Secretary, and the President--on our progress.
        There are a number of disturbing elements to the conditions at
    Walter Reed, yet we are confident that each of these items is fixable
    with sustained leadership and oversight. The Department, with the
    assistance of the Secretary's independent review group, will come
    forward with revised approaches to addressing the more complex
    personnel and medical issues. The problems before us can be categorized
    and assessed as follows:
        Physical Facility Issues
        In the case of substandard housing, the Army has been able to
    quickly implement a corrective action plan. Some of those actions have
    already occurred with facility repair and improvements. Clearly, other
    facility improvements may require more comprehensive repairs that may
    take longer. We are confident the Army is taking steps to ensure that
    any needed improvements will be made.
        Process of Disability Determinations
        The critical first step in assessing this process will be to
    identify the desired outcome. Both servicemembers and the Department
    have expectations, including: full rehabilitation of the servicemember
    to the greatest degree medically possible; a fair and consistent
    adjudication of disability; and, a timely adjudication of disability
    requests--neither hurried nor slowed due to bureaucratic processes.
        The fundamental problems did not result from a lack of available
    resources. The main effort here must be focused on the processes being
    analyzed and assessed for their value and alternatives. The processes
    must be redrawn with the outcomes we have in mind, with as much
    simplicity and timeliness as possible. We are working hard to implement
    solutions to issues identified in the March 2006 Government
    Accountability Office Report 06-362. Most important, we have set forth
    a process for updating DOD directives/instructions that promulgate
    disability policies. We will publish a draft revised Disability
    Evaluation System overarching policy before the end of April.
        Process of Care Coordination
        Again, the quality of medical care delivered to our servicemembers
    is exceptional. Independent review supports this assertion. Yet, the
    process of coordinating delivery of services for members in long-term
    outpatient, residential rehabilitation needs attention. The Army will
    assess, and we will review, the proper ratio of case-managers-to-
    wounded servicemembers. We will also assess the administrative and
    information systems in place to properly manage workload in support of
    the soldiers.
        The planned consolidation of health services and facilities in the
    National Capital Region will enable the Department to best address the
    changing nature of inpatient and outpatient healthcare requirements,
    specifically the unique health needs of our wounded servicemembers and
    the needs of our population in this community. The BRAC decision also
    preserves a precious national asset by sustaining a high-quality,
    world-class military treatment facility with a robust graduate medical
    education program in the Nation's Capital. The plan is to open this
    facility by 2011. In the interim, we will not deprive Walter Reed of
    resources to function as the premier medical center it is. In fact, in
    2005 we funded $10 million in capital improvements at Walter Reed's
    Amputee Center--recognizing the immediate needs of our warrior
    population. We are proud of that investment in capacity and technology.
    We simply will not allow the plans for a new medical center to
    interfere with the ongoing facility improvements needed in the current
    hospital.
        In the current spate of news reports on Walter Reed, the trust that
    we have earned through our many medical achievements has been damaged.
    Everyone's efforts will be focused on repairing and re-earning that
    trust. Our civilian and military leaders have remained steadfast in
    both their support of what we have accomplished, and their belief that
    these matters can be fixed. U.S. military medicine and our medical
    personnel are a national asset, representing a readiness capability
    that does not exist anywhere else, and--if allowed to dwindle--could
    not be easily reconstituted. We must preserve this asset.
    DOD-DVA Sharing
        DOD works closely with the VA at many organizational levels to
    maintain and foster a collaborative Federal partnership. We have shared
    healthcare resources successfully with the VA for 20 years, but many
    opportunities for improvement remain. Early in this administration we
    formed the DOD-VA Joint Executive Council, which meets quarterly to
    coordinate health and benefit actions of the two cabinet departments.
        The recently updated VA/DOD Joint Strategic Plan supports the
    common goals from both the VA Strategic Plan and the MHS Strategic Plan
    and incorporates them into the goals and objectives of the councils and
    their associated work groups.
        Health care resource sharing incorporates everything from general
    and specialized patient care, to education and training, research and
    development, and healthcare administrative support. At the end of
    fiscal year 2006, DOD military treatment facilities and Reserve units
    were involved in sharing agreements with 157 VA medical centers.
        The NDAA for Fiscal Year 2003 required VA and DOD to undertake
    significant collaborative initiatives. Section 721 of that Act required
    that the departments establish, and fund on an annual basis, an account
    in the Treasury, referred to as the Joint Incentive Fund (JIF). The JIF
    is intended to eliminate budgetary constraints as a possible deterrent
    to sharing initiatives, by providing earmarked funding to cover the
    start-up costs associated with innovative and unique sharing
    agreements. The 2006 projects cover such diverse areas of medical care
    as mental health counseling, Web-based training for pharmacy
    technicians, cardio-thoracic surgery, neurosurgery and increased
    physical therapy services for both DOD and VA beneficiaries.
        Section 722 of the same act mandated the departments execute no
    fewer than three health care coordination demonstration projects over a
    5-year period. There are seven sites currently testing initiatives,
    such as the Bi-Directional Health Information Exchange, Laboratory Data
    Sharing Initiative and Joint Market workload data analysis. The
    demonstration projects will generate valuable lessons learned for
    future DOD and VA sharing initiatives across the country.
        The goal of seamless transition is to coordinate medical care and
    benefits during the transition from active duty to veteran status in
    order to ensure continuity of services and care. Seamless transition
    efforts have made it possible for servicemembers to enroll in VA health
    care programs and file for VA benefits prior to separation from Active
    duty status.
        DOD and the VA implemented the Army Liaison/VA PolyTrauma
    Rehabilitation Center Collaboration program--also called ``Boots on the
    Ground''--in March 2005. The intent of this program is to ensure that
    severely injured servicemembers who are transferred directly from a
    military treatment facility to one of the four VA PolyTrauma Centers,
    in Richmond, Tampa, Minneapolis, and Palo Alto, are met by a familiar
    face and a uniform. A staff officer or non-commissioned officer
    assigned to the Army Office of the Surgeon General is detailed to each
    of the four locations. The role of this Army liaison is primarily to
    provide support to the family through assistance and coordination with
    a broad array of issues, such as travel, housing, and military pay. The
    liaisons also play a critical role in the rehabilitation process, by
    promoting resiliency in servicemembers. Finally, it is important that
    these servicemembers and their families realize that we appreciate
    their service.
        The next program is the Joint Seamless Transition Program,
    established by VA in coordination with the military Services, to
    facilitate and coordinate the timely receipt of benefits for severely
    injured servicemembers while they are still on Active duty. There are
    12 VA social workers and counselors assigned at 10 military treatment
    facilities, including Walter Reed Army Medical Center and the National
    Naval Medical Center in Bethesda. They ensure the seamless transition
    of healthcare, which includes a comprehensive plan for treatment.
    Veterans Benefits Administration counselors visit all severely injured
    patients and inform them on the full range of VA services, including
    readjustment programs and educational and housing benefits. As of
    December 15, 2006, VA social worker liaisons had processed 6,714 new-
    patient transfers to the Veterans Health Administration at the
    participating military hospitals.
        The DOD and VA information-technology communities have made
    considerable progress toward and will continue joint pursuit of
    information-management and technology initiatives that will
    significantly improve the secure sharing of appropriate health
    information.
        The Federal Health Information Exchange (FHIE) supports the monthly
    electronic transfer of health information from DOD to VA at the time of
    the servicemember's separation. The data contained in this transfer
    include: laboratory and radiology results, as well as discharge
    summaries, admission, disposition and transfer information, and
    patient-demographic information. Healthcare providers within the
    Veterans Health Administration and benefits counselors within the
    Veterans Benefits Administration access this information via the
    Computerized Patient Record System (CPRS) and Compensation and Pension
    Records Interchange (CAPRI), respectively. As of the end of fiscal year
    2006, DOD had transmitted health data on more than 3.6 million
    patients. DOD also uses FHIE to transmit data to the VA regarding VA
    patients who are receiving care within military treatment facilities.
    DOD has sent more than 1.8 million individual transmissions.
        FHIE is also being used as a platform from which DOD transmits pre-
    and post-deployment assessment information for separated servicemembers
    and demobilized reservists and guardsmen. The DOD has electronically
    transmitted more than 1.4 million assessments on more than 604,000
    individuals to the VA. DOD added data from the post-deployment health
    reassessment in fiscal year 2006.
        Building from the FHIE, which is a one-way flow of information, DOD
    and VA have developed and begun deployment of the Bi-Directional Health
    Information Exchange (BHIE). This exchange enables near-real-time
    sharing of allergy, outpatient prescription, and demographic data
    between DOD and VA for patients treated in both DOD and VA. BHIE is
    operational at all VA Medical Centers and at the 14 military treatment
    facilities with the highest incidence of returning OEF/OIF
    servicemembers and the highest number of visits for VA beneficiaries in
    DOD facilities.

              QUALITY OF LIFE FOR THE MILITARY AND THEIR FAMILIES

        This is the sixth year of sustained combat and the resiliency of
    servicemembers and their families is nothing less than remarkable. The
    Department makes family support a priority and has redesigned and
    boosted family support in a number of ways to recognize that families
    also serve and sacrifice.
    Communication with loved ones
        Military spouses indicate that being able to communicate with their
    servicemember is the number one factor in being able to cope with
    deployments. Back home, computers and Internet service at base
    libraries, family support centers, and youth centers ensure families
    can send and receive e-mails from their loved ones who are deployed.
    Phone banks with Internet hook ups are readily available in base camps.
    Free morale calls are also regularly available in theater. Morale
    programs include 145 free MWR-operated Internet cafes in Iraq and 30
    Internet cafes in Afghanistan. Mobile Internet cafes offer Internet
    Protocol phone service at less than $.04 per minute. The cost of phone
    calls is now much reduced through work with telecom companies, and our
    exchanges provide unofficial telephone service at low international per
    minute rates for deployed members on land and sea.
    Communication strategy
        The cornerstone of our communication strategy is Military OneSource
    (www.militaryonesource.com or 1-800-342-9647), which has quickly become
    the trusted source of information and assistance for servicemembers and
    their families. Military OneSource is a 24-hour information and
    referral service. It provides information and assistance on a wide
    range of issues, including parenting, child care, educational services,
    financial information and counseling. Individualized assistance is
    available by telephone, e-mail, or the Internet. Department survey
    results indicate that one in five servicemembers used Military
    OneSource in the previous 12 months. The current call volume is almost
    1,000 calls per day. In fiscal year 2006, there was an average of
    125,000 online visits per month. The 2006 Army Family Action Plan
    Conference designated Military OneSource as the number one program in
    support of mobilization, deployment and family readiness.
        The second part of our communication strategy is Military
    Homefront, (www.MilitaryHOMEFRONT.dod.mil). Our award-winning, ``best
    in government'' quality-of-life web portal is a user-friendly site that
    connects all DOD quality-of-life information on-line. The site reaches
    out to our men and women in the military, to their families and to
    service providers. In fiscal year 2006, there were over 25 million hits
    and 1.5 million visitors.
        Two new applications, Military Installations and Plan-My-Move, add
    a new dimension to the Homefront. For the first time, servicemembers
    can access the online Plan-My-Move; it provides tools for budget
    planning, household goods inventories and much more. Military
    Installations provides directions to programs, services, and facilities
    for military bases, National Guard offices and VA facilities worldwide.
    Counseling
        Family assistance and military member counseling is in increased
    demand--more than doubling over the last year. This short term,
    situational and problem-solving nonmedical support is designed to help
    servicemembers and their families cope with the normal reactions to
    stressful situations. All military Services, including the National
    Guard and Reserve component, are actively using this resource; it is
    intended to augment existing military support services during the
    cycles of deployment and reintegration. Up to six sessions of
    counseling per situation can be requested by individuals and families.
    The counseling, provided by licensed and credentialed professionals, is
    confidential and optimally available within a 30 minute drive time of
    the individual requesting services. Counselors are trained to assist
    families with life management issues such as reunion expectations,
    loneliness, stress, long separations, differences after a year apart,
    effects of deployment on children, loss and grief, and how best to
    reintegrate into family life. Financial counseling is also available to
    help with today's complex financial decisions and the added
    complication of family separations.
    Child Care
        Military parents rely on child care and youth programs during
    deployments to help them manage their rigorous work schedules. Since
    the beginning of OEF/OIF, the Department funded $228 million in
    additional child care, with an end result of creating approximately
    7,000 child care spaces in 37 child care centers and 42 additions/
    renovations at high personnel tempo locations. Further, an additional 4
    million hours of care were provided as a result of the increase in
    funding. In fiscal year 2006, the Department moved forward with the
    emergency intervention strategy to address the most pressing child care
    needs at locations impacted by high deployments and rebasing. To
    continue the effort, the Department dedicated $82 million toward the
    purchase of modular facilities, renovations, and expansion of current
    facilities.
        DOD supports the child care needs of Reserve component families
    through several initiatives: Operation: Military Child Care is a DOD
    partnership with a national non-profit organization that helps
    families/child guardians locate child care at reduced rates in their
    own communities when they are unable to access child care on military
    installations; Operation Military Kids is the Army's collaborative
    effort with community agencies to support the `suddenly military'
    Reserve component children and youth before, during, and after the
    deployment of a parent or loved one. In fiscal year 2006, more than
    29,000 youths in 34 states participated in Operation Military Kids
    activities; in 2007, a new Coaching for Young Families initiative will
    provide 20 full-time positions offering counseling support to families
    with young children in high deployment areas. Twelve of the 20
    consultants will work at National Guard and Reserve component
    locations.
    Casualty Assistance
        Each Service has its own customs, but all see assistance to
    families of the fallen as a top priority. The Army, Navy, and Marine
    Corps assign a uniformed member to assist the family, while the Air
    Force provides assistance through a full time civilian Casualty
    Assistance Representative. The Services have developed programs to
    provide personal assistance as long as the families desire contact and
    stand ready to respond whenever a concern arises.
        In March 2006, the Department published ``A Survivor's Guide to
    Benefits, Taking Care of Our Own.'' The guide details the Federal
    benefits available to families of servicemembers who die on active
    duty, to include coordinated benefit information from the DOD, VA, and
    SSA. This guide, that was updated last June and November, is on the
    Military Homefront Web site, where it is always available in its most
    current version.
        For Service casualty staff and military widows, the Department
    created ``The Days Ahead, Essential Papers for Families of Fallen
    servicemembers,'' a tool designed to assist families in organizing the
    avalanche of paper work that is necessary as a family applies for and
    receives Federal benefits as a result of an active duty death.
    Transportation of Fallen Loved Ones
        With the enactment of section 562 of the NDAA for Fiscal Year 2007,
    effective 1 January 2007, dedicated military or military-contracted
    aircraft is the primary mode of air transportation of remains that are
    returned to the United States from a combat theater of operations
    through the mortuary facility at Dover Air Force Base (AFB). Commercial
    air may only be authorized at the request of the person designated to
    direct disposition. The Department has recently expanded this provision
    to include transportation for all personnel who die of their wounds or
    injuries sustained in a combat theater of operations regardless of
    whether the remains are processed through Dover AFB.
        A member of the Armed Forces, in an appropriate grade, escorts the
    fallen servicemember's remains continuously until arrival at the
    applicable destination. At the arrival airfield, an honor guard detail
    is available to render appropriate honors and participate in the off-
    loading of the flag-draped casket from the aircraft to awaiting ground
    transportation for onward movement to the funeral home or cemetery.
        Since families still sometimes choose the use of commercial air,
    the Department continues to work with the commercial airline industry
    to ensure that all actions are taken to ensure our fallen are handled
    with the highest level of respect. The airline industry responded to
    this request for support with a multitude of courtesies.
    Expedited Citizenship
        Gaining citizenship for a non-U.S. citizen servicemember is not
    only a satisfying, and often a life-long goal for that individual, it
    also provides a stepping stone for members of the family to become
    citizens. The Department works closely with the Department of Homeland
    Security's Citizenship and Immigration Service (CIS) to expedite
    citizenship applications for non-U.S. citizens who serve honorably in
    our Armed Forces. CIS established an office in 2002, dedicated to work
    all military citizenship applications. Since this office was
    established, 35,818 servicemembers have obtained citizenship and the
    average processing time has been reduced from 9 months to less than 60
    days. At DOD's request, CIS recently entered into an agreement with the
    FBI to permit the use of military member fingerprints provided at the
    time of enlistment for processing military member citizenship
    applications. The Department also continues to work closely with the
    CIS to conduct naturalization interviews and swearing-in ceremonies
    overseas and onboard ships. Over 3,194 military members have been
    naturalized at overseas ceremonies conducted since October 1, 2004.
    National Guard and Reserve Family Support
        This past year has seen a maturing of existing programs, new
    initiatives, and integrated support systems to respond to the special
    needs of families, especially National Guard and Reserve families
    located significant distances from military installations. Per
    direction in the NDAA for Fiscal Year 2007, the Department is designing
    a regional joint family support model. Two critical components of the
    model involve building coalitions and connecting Federal, State, and
    local resources and nonprofit organizations to support Guard and
    Reserve families. Best practices and lessons learned from 22 Inter-
    Service Family Assistance Committees and the Joint Service Family
    Support Network will guide the planning process. Minnesota's, ``Beyond
    the Yellow Ribbon'' reintegration program will serve as a model with a
    funded Community Reintegration Coordinator position. Hawaii and Oregon
    have volunteered to be models. These are States where we can build on a
    successful infrastructure to deliver a wide range of family assistance
    to expand our reach to the Guard and Reserve.
    Financial Readiness
        The Department considers the personal financial stability of
    servicemembers and their families a significant factor in military
    preparedness. Financial readiness remains a top priority for the DOD
    and we aggressively promote a culture within the military that values
    financial competency and responsible financial behavior. The
    Department's Financial Readiness Campaign encourages servicemembers to
    achieve good credit, save on a regular basis, obtain good interest
    rates on loans, and take advantage of the opportunity to participate in
    the Thrift Savings Plan (TSP) and the Servicemembers' and Veterans'
    Group Life Insurance (SGLI).
        The Financial Readiness Campaign includes partnerships with other
    Federal, corporate, and non-governmental organizations to help military
    members and their families manage their finances. While trends in the
    past couple of years show more servicemembers are able to save and
    fewer are having financial problems, a third of E1s-E4s still indicate
    that they have financial problems. It is important that we continue
    efforts to provide access to cost-effective financial readiness tools
    and products, and protect members from predatory lenders.
        Education is our first line of defense. In 2006, the Services
    provided more than 11,800 financial management classes at their
    installations around the world and trained more than 324,000
    servicemembers (approximately 24 percent of the force), as well as
    19,400 family members. Our campaign partner organizations, such as
    those represented by our on-installation banks and credit unions,
    conducted an additional 1,300 classes, serving a total of 60,600
    servicemembers and their families.
        Our 23 financial readiness partners are invaluable in providing
    both education and counseling to our servicemembers and families and in
    offering affordable, easily accessible financial products. The
    Financial Literacy and Education Commission provides educational and
    training materials through the Web site www.mymoney.gov. The Commission
    also supports a toll-free number and consolidates education and
    training materials available through the Federal agencies that have
    been widely advertised and linked to DOD and military service Web
    sites. The InCharge Institute provides access to credit counseling/debt
    management, and publishes a quarterly magazine Military Money in
    partnership with the National Military Family Association. The National
    Association of Securities Dealers Foundation funds a multi-year
    awareness and education program to supplement programs provided by the
    military Services, including a scholarship program for military
    spouses, through partnership with the National Military Families
    Association, to accredit them as `financial counselors' in return for
    volunteer hours in military communities. Our military relief societies
    continue to provide outstanding educational materials and counseling,
    as well as financial assistance when our servicemembers are in need.
        As we push our campaign into 2007, the Department provides free
    Federal and State online tax preparation and filing through Military
    OneSource for all members regardless of component or activation status.
    This service includes free telephonic access to trained financial
    professionals who can answer many tax questions. The Department
    encourages servicemembers to add any refunds to a savings account. The
    Department sponsored ``Military Saves'' Week in February, in
    conjunction with the Consumer Federation of America's nationwide
    ``America Saves'' campaign. This was an intense week of training and
    encouragement to start reducing debt and save for the future. Members
    can set a savings goal by registering on www.militarysaves.org.
    Predatory Lending
        The Department delivered a report to Congress last August about the
    impact of predatory lending practices on members of the Armed Forces
    and their families. The report showed the Department is fully engaged
    in educating servicemembers and their families, and that the banks and
    credit unions on military installations, along with the Military Aid
    Societies, are providing alternative loans. However, we also found that
    we did not have adequate methods for controlling the prevalence or the
    impact of high cost short-term loans.
        The NDAA for Fiscal Year 2007 gives the Department an opportunity
    to preclude many of the predatory lending practices from impacting
    servicemembers and their families. The NDAA sent a clear message that
    servicemembers should consider alternative loans and counseling to
    resolve their credit problems instead of perpetuating them through
    sources of high cost credit.
        DOD staff has met with members of Federal regulatory agencies and
    has defined a game plan to establish a regulation that can focus the
    provisions of the statute on the issues associated with predatory
    lending, without impacting the access of servicemembers and their
    families to beneficial forms of credit.
    Commercial Insurance Solicitation
        DOD Instruction 1344.07, Personal Commercial Solicitation on DOD
    Installations, became effective on July 10, 2006. The new Instruction
    requires installations to report any withdrawal or suspension of
    solicitation privileges to their Service headquarters and to the Office
    of the Secretary of Defense (OSD). OSD maintains a DOD-wide list of
    insurance and investment companies and agents who are barred or banned
    from doing business on any DOD installation. Installation commanders
    must review this list prior to approving any new requests to solicit on
    the installation. Any changes to this list are also reported to
    appropriate State insurance and Federal securities regulators.
        The instruction also contains policy on the use of nongovernmental
    organizations to provide financial education to servicemembers, and
    policy to preclude commercial sponsorship of morale, welfare, and
    recreation programs or events from being used to obtain personal
    contact information to foster future solicitations. Of particular note,
    on-base solicitors are now required to provide prospective clients with
    a Personal Solicitation Evaluation form that will provide feedback to
    installation officials on how the solicitation was conducted. The
    evaluation form is designed to detect policy violations and will help
    installations better enforce on-base commercial solicitation rules.
    Domestic Violence
        Domestic Violence statistics are slightly lower than last year. The
    Department remains steadfast in its commitment to strengthen its
    response to domestic violence and continues to make substantial efforts
    to improve training of key staff. During the past year, we conducted
    six domestic violence training conferences, three of which were offered
    to joint gatherings of commanding officers, Judge Advocates, law
    enforcement personnel, and victim advocates. We continue implementation
    of the restricted reporting policy for incidents of domestic violence.
    This policy offers victims the option of seeking medical and victim
    advocacy assistance without making a report to the victim or abuser's
    commander or law enforcement. This confidential assistance is crucial
    for victims who may be concerned about their safety, the military
    career of the family-member offender, or the family's financial
    welfare. The Department continues to expand its victim advocacy
    program, which provides access to on-call victim advocates and shelters
    to assist victims of domestic violence. During the past year we
    launched a Web-based domestic violence training curriculum for
    commanding officers that addresses their responsibilities when
    responding to incidents of domestic violence.
        In partnership with the Family Violence Prevention Fund, we
    developed and launched a national public awareness campaign to prevent
    domestic violence. The campaign is designed as a prevention message to
    educate service men and women and their families about domestic
    violence and increase awareness of domestic violence prevention
    resources. In partnership with the Office on Violence Against Women of
    the Department of Justice, we have continued several joint initiatives,
    including training for victim advocates and law enforcement personnel.
    Additionally, we are conducting domestic violence coordinated community
    response demonstration projects in two communities near large military
    installations. The goal of the projects is to develop a coordinated
    community response to domestic violence focusing on enhancing victim
    services and developing special law enforcement and prosecution units.
    Finally, we are participating in the President's Family Justice Center
    Initiative. The initiative provides funding through the Office on
    Violence Against Women for 15 centers in select communities nation-
    wide. The Department partnered with four centers near military
    installations to address domestic violence.
    Military Children's Education
        The Department shares a strong interest in quality elementary and
    secondary education for military children with our partners in State
    and local education systems. One of the major factors in sustaining the
    All-Volunteer Force is providing quality educational experiences for
    military children.
        Our DOD schools have high expectations for the over 91,000 students
    enrolled in our 208 schools located in 12 countries, 7 States, and 2
    territories. DOD students are among the highest performing in the
    Nation as measured by norm-reference assessments like the TerraNova and
    the Nation's report card, the National Assessment of Education
    Progress. Our students consistently score above the national average at
    every grade level and in every subject area. A key ingredient to this
    success is the partnership that exists among schools, parents, and
    military commands, focusing on superior student achievement. DOD
    schools are also leading the Nation in closing the achievement gap
    between white and non-white students. African-American and Hispanic
    students in DODEA schools consistently outperform their counterparts in
    the 50 States in reading and math.
        In January 2007, the Peabody Center for Education Policy at
    Vanderbilt University provided DOD with an updated review of their 2001
    study, commissioned by the National Education Goals Panel, on the high
    academic achievement in the Department of Defense Education Activity
    (DODEA) Schools. The Department is proud to report that 6 years after
    the initial findings, DODEA student data reveals that the trend of
    outstanding academic achievement among all students in general, and
    among minority students in particular, enrolled in DODEA schools
    continues. Using National Assessment of Educational Progress data, the
    follow-up Vanderbilt University study documents that the trend of high
    academic performance of students enrolled in DODEA schools persists
    beyond their initial 2001 review, and, in fact, that the achievement
    gap continues to grow narrower than the national average. The
    achievement gaps between white and minority students remain much
    smaller than the national averages. The DODEA writing scores are the
    second highest in the Nation, climbing from 33 percent to 38 percent of
    students at or above proficiency. Further, the DODEA reading scores
    have risen to an impressive first in the Nation with 40 percent of
    DODEA students scoring at or above proficiency. These results compare
    favorably to the national averages at 30 percent of students at or
    above proficiency in both writing and reading. The report conjectured
    that the foundation upon which DODEA high achievement persists relies
    upon the core and quality features embedded within the institutional
    structures, instructional practices, and social and economic conditions
    within the DODEA schools and communities they serve.
        The DOD school system has responded to the President's National
    Security Language Initiative, which promotes the study of critical need
    languages in grades K-12. DODEA has launched a foreign language program
    that will initially introduce DOD strategic foreign languages, such as
    Mandarin Chinese, to selected elementary and secondary schools in the
    DODEA system.
        The NDAA for Fiscal Year 2007 directed the Department to ease the
    transition of military students from attendance at DOD schools to
    attendance in schools of local educational agencies (LEAs). DODEA will
    share its expertise and experience in developing rigorous and
    successful academic programs, teacher professional development, and
    distance learning technology capabilities with stateside school
    districts impacted by base closures, global rebasing, and force
    restructuring. The Department identified 17 communities in 14 States
    that will experience a large number of students transitioning into
    their schools because of large scale relocation and rebasing. DODEA has
    begun building partnerships with affected stateside school systems to
    assist them in expanding quality instructional programs. The ultimate
    goal of the program is to ensure that a high quality educational
    program is provided to all military dependents living both inside and
    outside the gates of military installations.
        As an initial step in sharing best practices with LEAs, last
    November the Department sponsored a Conference on Education for
    Military-Connected Communities, which brought together teams comprised
    of military, civilian, school and business leaders from the 17
    communities that will experience an increase in military dependent
    students due to the large scale rebasing effort. Over 200 participants
    heard from experts who provided participants with a list of resources
    for their communities to using during transition.
        The Department is also sharing information on the unique
    characteristics of military dependent students with military and
    community leaders, military parents and school superintendents who work
    with these students. To communicate effectively with military parents,
    teachers and students, the Department provides information on our Web
    site www.militarystudent.org about the impact of deployments on
    children, resources to assist in separations and transitions, and best
    practices in quality education.
        Along with toolkits and outreach through DODEA, the Department is
    making the Johns Hopkins Military Child Initiative available to
    military-connected communities and LEAs. The John Hopkins Center for
    Schools Impacted by Children of the Military focuses on meeting the
    needs of children and youth least likely to feel connected to school
    (i.e., children of military families who live in highly mobile
    circumstances). The Center's approach is being shared with impacted
    schools and military parents to improve student success, school/family/
    community partnerships and student engagement.
    Spouse Education and Careers
        Trying to sustain a career is a major issue facing military
    spouses. The majority of the 700,000 military spouses of Active duty
    personnel are in the civilian workforce. In the 2006 Survey of Spouses,
    83 percent of spouses report that developing a career is a personal
    goal. Perhaps even more important to the Department, research indicates
    that a military spouse's support for a career in the Armed Forces is a
    top factor in the retention decision of a married servicemember.
        Unfortunately, military spouses are a disenfranchised population,
    generally not included in our Nation's major labor and workforce
    development opportunities. Frequent relocations result in denial of
    opportunities ranging from eligibility for in-State tuition and State
    unemployment compensation to achievement of tenure. For those spouses
    whose employment requires costly certification and/or licensure
    requirements, the state-to-state moves are enormously expensive,
    sometimes precluding a career. Military spouses are excluded from
    calculation of the National unemployment rate; thus, many State and
    local workforce investment boards are reluctant to serve military
    spouses. The unemployment rate for military spouses, at 12 percent, is
    much higher than the National unemployment rate. Further, our research
    shows that military spouses earn about $3.00 per hour less than their
    civilian counterparts.
        At the same time, military spouses are better educated than their
    civilian ``look-alikes:'' 7 of 10 spouses have some college education.
    About 20 percent of spouses are enrolled in post-secondary schools;
    another 51 percent would like to be in school.
        The Department is committed to helping military spouses pursue
    rewarding careers and achieve educational and training goals. We are
    actively working with DOL to ensure military spouses can receive
    education and training support via Workforce Investment Act funds.
    Further, we are partnering with the DOL and national associations
    around careers in high-growth industries with mobile and portable
    careers, such as medical transcription, financial services, education,
    and real estate. The DOD/DOL collaborative Web site
    (www.milspouse.org), which assists spouses with resume development,
    locating careers, identifying available training and linking to One
    Stop Career Centers, continues to be a great resource for our military
    spouses with almost 7 million Web site hits in fiscal year 2006.
        When asked what would have helped them find work after their most
    recent permanent change of station move, approximately a third of the
    spouses surveyed in the 2006 Survey of Spouses indicated that easier
    transition of certifications would have helped, and 27 percent
    indicated that financial help with transferring certifications was
    lacking. We have identified a range of popular spouse careers that have
    State-specific licensing requirements and have designed strategies to
    address them, initially focusing on teaching and real-estate. Six
    States have now adopted the American Board for Certification of Teacher
    Excellence (ABCTE), a national passport teaching credential. Spouses
    with an ABCTE credential will not have to be recertified in these
    States. The Department also uses the Spouse-to-Teacher program to
    support military spouses in their pursuit of K-12 teaching degrees and
    positions in public and private schools.
        Re/MAX launched a program, Operation Re/MAX, that provides military
    spouses the opportunity to achieve a career in the real estate
    industry. Since August 2006, there have been almost 2,000 inquiries
    from military spouses and there are over 800 Re/MAX offices offering to
    hire military spouses.
        Our efforts to raise employer awareness through our partnership
    with military.com, a division of monster.com, have proven to be a great
    success. Via this Web site portal www.military.com/spouse, 155,000
    military spouses have posted their resumes and conducted over 3 million
    job searches of Federal and private sector jobs. There are now over 300
    spouse-friendly employers actively recruiting military spouses for
    their vacant positions; these organizations can post jobs at no cost
    and may search this exclusive database for military spouse candidates.
    Transition Assistance Program (TAP)
        Returning to private life after serving in the military is a
    complex undertaking. To better meet the needs of servicemembers,
    including the Guard and Reserve, DOD, with the assistance of the DOL
    and VA, is designing a new dynamic automated Web-based system that will
    revolutionize the delivery of transition assistance and information. We
    have nicknamed the new portal: ``TURBO TAP.'' The portal architecture
    will become the backbone of the DOD TAP process. The primary feature of
    ``Turbo TAP'' will be to allow each servicemember to receive customized
    accounts of benefits from DOD, DOL, and VA. Individuals may return to
    their account to refresh their memory or take advantage of a benefit at
    a later date. The portal will augment the personal service provided by
    our transition counselors. Further, the current preseparation guide for
    active duty personnel, and a new transition assistance guide
    specifically for the Guard and Reserve will be released soon.
    Voluntary Education
        The Department's off-duty, voluntary education program constitutes
    one of the largest continuing education programs in the world. Each
    year approximately 450,000 servicemembers enroll in postsecondary
    courses leading to associate, bachelors, masters, and doctorate
    degrees. Colleges and universities, through an extensive network,
    deliver classroom instruction to hundreds of military members around
    the world through traditional and distance learning instruction. In
    fiscal year 2006, Service personnel enrolled in 798,972 courses and
    received 43,467 degrees and diplomas. Despite the challenges of war,
    degrees have increased as military personnel finish coursework in
    traditional classrooms (on and off base), as well as on state-of-the-
    art hand-held delivery systems such as personal digital assistants and
    iPods. In support of the intent of President's National Security
    Language Initiative and Defense Language Transformation, we expanded
    our tuition assistance policy to allow servicemembers to take
    strategically needed language courses unrelated to a degree. We also
    worked with major book distributors and some of our major academic
    partners to reduce out-of-pocket expenditures related to the ever-
    increasing cost of text books, resulting in a savings to servicemembers
    of over 30 percent annually.
    State Liaison Initiatives
        In 2004, DOD approached the National Governors Association to
    request assistance in supporting aspects of quality-of-life for
    servicemembers and their families that could be influenced best through
    the actions of State governments. In the past 2 years, Governors and
    State legislators have embraced these opportunities to show their
    support for servicemembers and their families. The Department
    concentrated discussions on 10 key issues: (1) assistance to Guard and
    Reserve members and families, (2) assistance to the severely injured,
    (3) in-State tuition rates for servicemembers and their families, (4)
    school transition assistance for children of military families, (5)
    employment assistance for military spouses, (6) unemployment
    compensation for military spouses, (7) limits on payday lending, (8)
    absentee voter assistance, (9) growth of foreign language education,
    and (10) increases in child care assistance for Guard and Reserve
    families.
        Governors and other State policymakers have taken these issues
    seriously: for example, 30 States are providing in-State tuition rates
    to servicemembers and their families while assigned to a State as a
    non-resident, and continuing this support for family members enrolled
    in school if the servicemember is reassigned out of State. Additional
    information on the progress of the key issues is provided to state
    policymakers and others at www.USA4MilitaryFamilies.org.
    Morale Welfare and Recreation (MWR)
        MWR programs enhance the social fabric of a military community by
    providing activities normally found in ``hometown communities,'' such
    as libraries, fitness centers, bowling, golf, parks and sports fields.
    Some servicemembers returning from the intensity of war miss the
    adrenaline-high experienced while living in constant danger. As a
    consequence, they may seek out risky and sometimes self-destructive
    activities. We are providing high adventure MWR Return and Recreate
    programs as safer, supervised alternatives: rock climbing, mountain
    biking, jet skiing, white-water rafting, paintball, and windsurfing.
        The continued vitality of military MWR programs depends on
    consistent appropriated fund support to Category A (mission sustaining)
    and Category B (community support) MWR activities and a predictable
    nonappropriated fund revenue stream from Category C (revenue-generating
    MWR activities). Each of the Service's MWR funds is currently in sound
    financial condition. However, we are concerned about the impact of BRAC
    and Global Rebasing: overseas locations produce a significant portion
    of MWR revenues and exchange profits used to support capital
    replacement programs. At current performance levels, MWR will not
    generate sufficient funds to fully sustain future capitalization
    requirements and we must identify and use other revenue-generating
    opportunities to fill this gap.
    Professional Entertainment
        Entertainment helps build morale for deployed servicemembers.
    Nowhere is this support more important than in the austere locations
    where servicemembers are performing duty in support of the global war
    on terror. Armed Forces Entertainment (AFE) continues to provide much
    welcomed celebrity and professional entertainment to our forces
    overseas.
        In 2006, AFE conducted 118 tours with 1,433 shows in 25 countries.
    Eighteen of those tours were with the United Service Organizations'
    coordination. From 2002 through 2006, the Robert and Nina Rosenthal
    Foundation worked closely with the Country Music industry to provide 76
    celebrity entertainment shows at no cost to military personnel and
    their families. The resulting Spirit of America Tour provides a brief
    reprieve from the stresses of deployments at military installations
    within the continental United States.
    Exchanges and Commissaries
        The commissary and exchange are valued contributors to the quality-
    of-life of our servicemembers and their families. They provide a safe
    and convenient community hub, particularly in overseas areas.
        Commissaries help military families save over 30 percent on grocery
    and household necessities. The Defense Commissary Agency (DECA) makes
    sure that familiar name brands are available for military families at
    active duty installations around the world. The Department's challenge
    is to sustain the value of the commissary to our servicemembers without
    increasing the cost to the taxpayer. DECA, with oversight by the
    Commissary Operating Board, is becoming a state-of-the-art retail
    enterprise and is increasingly efficient and effective at delivering
    the benefit. Commissary customer satisfaction continues to surpass the
    supermarket industry. Moving forward, DECA will pursue new ways to
    support military families who don't live on or near military
    installations and explore cooperative efforts with the military
    exchanges that enhance overall quality-of-life.
        The Armed Service Exchanges provide over $300 million to help
    support morale, welfare and recreation programs. The Exchanges are
    using technology--independently and with each other--to improve value
    to their customers and to lower operating costs.

                                   CONCLUSION

        Mr. Chairman, we want to thank you and members of this subcommittee
    for your advocacy on behalf of the men and women of the DOD.
        We established our survey program to listen to our military and
    civilian personnel. We believe they are telling us that we have a
    stable, satisfied, and committed Total Force.
        Eighty percent of active duty members believe they are personally
    prepared, and two-thirds believe their unit is prepared, for their
    wartime jobs. These views have held steady from the start of Operation
    Iraqi Freedom (March 2003) through the latest survey (August 2006).
    Although deployments can place a strain on servicemembers and their
    families, two-thirds of members deployed since the start of Operation
    Iraqi Freedom indicated that access to the Internet and e-mail while
    away have greatly improved their quality-of-life. More than half of
    members (53 percent) who used Military OneSource in the past year (most
    of whom accessed the program via the Internet) were satisfied with the
    resource. In terms of compensation, more than three-fifths of
    servicemembers reported being financially comfortable in April 2006,
    and four-fifths indicated saving a portion of their household income.
    More than two-thirds of servicemembers were satisfied with their
    medical (72 percent) and dental (68 percent) benefits, and more than
    three-quarters (77 percent) rated their health benefits better relative
    to their high school classmates. Overall, in August 2006, 57 percent of
    servicemembers indicated they are likely to stay on Active duty. Based
    on research using prior surveys, 90 percent of servicemembers who
    indicate they are likely to stay actually do stay. Therefore, we feel
    confident that almost three-fifths of our current Active duty force
    will stay in the military.
        After showing decreases between May 2003 and November 2004, Reserve
    retention intentions have stabilized and are currently at 67 percent.
    Between December 2005 and June 2006, reports of family support to stay
    in the National Guard/Reserve increased, and stress levels decreased.
    The June 2006 survey results show that approximately two-thirds of
    members say they have not been away longer than expected, and average
    nights away and time away decreasing the desire to stay in the military
    decreased from December 2005. Results from this survey also show that
    roughly two-thirds of reservists working for employers consider them to
    be supportive of their military obligations. Where employment problems
    have occurred and reservists have sought assistance, roughly two-thirds
    turned to ESGR. Of those who contacted ESGR, 62 percent reported they
    were satisfied with the manner in which their request for assistance
    was handled.
        In the past year, we also fielded special surveys to spouses so we
    could fully understand the impact of deployments on the family. Results
    indicate that 61 percent of Active duty spouses and 75 percent of
    Reserve spouses support their husband or wife staying in the military.
    These results are encouraging, as spouses' reports of their support are
    even higher than members' assessments of spouse support. We plan to
    continue fielding regular surveys of spouses to better understand the
    issues facing today's military families.
        Although we have challenges ahead managing our civilian workforce--
    assimilating them into jobs previously performed by the military,
    implementing a new personnel system, and replacing retiring personnel--
    the outlook is very encouraging. Since we began surveying civilians in
    the fall of 2003, we have learned that large majorities are satisfied,
    and their satisfaction levels on a number of indicators are rising.
    Roughly three-fourths are satisfied with working for their
    organizations (73 percent) and their jobs (78 percent). The majority of
    employees are satisfied with the type of work they do (83 percent),
    quality of coworkers (67 percent), quality of supervisor (67 percent),
    and total compensation (64 percent). Approximately 90 percent
    consistently report they are prepared to perform their duties in
    support of their organization's mission, and over half are satisfied
    with management and leadership.
        In conclusion, we continue to have a dynamic, energetic, adaptable
    All-Volunteer Total Force. With your help we are confident we can
    sustain that Total Force. These volunteers have performed magnificently
    under the most arduous and perilous of circumstances. They have not
    failed us; we must not fail them.

        Senator Ben Nelson. Secretary Hall?

       STATEMENT OF HON. THOMAS F. HALL, ASSISTANT SECRETARY OF
                      DEFENSE FOR RESERVE AFFAIRS

        Mr. Hall. Chairman Nelson, thank you for the opportunity to
    appear. I appreciate what you and the other members of the
    committee have done, and continue to do, of our young men and
    women serving today.
        I'm not up to Dr. Chu's record of nine appearances, but I
    believe this is my fifth, since I'm into my fifth year; and I
    believe what I have seen is considerable progress on the way in
    which we train, compensate, mobilize, and utilize our Guard and
    Reserve. I'm very encouraged by the progress that we have made.
        I served for 38 years of Active Duty, and I served in a
    draft military. I can tell you that the young men and women
    today, as all volunteers, are absolutely superb. We've
    mobilized almost 550,000 since the beginning of the war. We
    have 74,000 guardsmen and reservists mobilized as of today.
    But, most significantly, that's 120,000 less than we had at the
    highwater mark, almost five or six Army divisions less. So, we
    are reducing the stress on the force.
        The Secretary of Defense has also published a new
    mobilization memo on January 19. Soon after coming aboard, he
    received advice and counsel, and as a result, we are limiting
    our total mobilizations to 1 year, we are setting metrics for
    both our Active and our Guard and Reserve for how, and when,
    they should deploy. We're looking at mobilizing by units. We
    are looking at reducing, if not eliminating, the stop-loss
    policy. For those people that might go more frequently, we're
    looking at a compensation policy.
        I might add, I just returned from a speaking engagement
    this weekend, one of many, and I have yet to find throughout
    the United States any guardsmen, reservists, family, or
    employers that don't support the new mobilization policy. They
    think it is a move in the right direction.
        Finally, I would say that I have recently chaired the
    working group appointed by the Secretary of Defense to analyze
    Mr. Punaro's Commission on the Guard and Reserve. In
    particular, there are 23 recommendations. Tomorrow, I will
    deliver my report to the Secretary of Defense on that
    commission. We were given 30 days, but we finished in 14. The
    import of that is that I know that the Secretary of Defense is
    anxious to quickly implement, in policy, the changes that he
    agrees with, and quickly work with you on legislation to change
    the things that he needs.
        Thank you, again, for the opportunity to appear.
        Senator Ben Nelson. Thank you.
        Dr. Jones?

    STATEMENT OF STEPHEN L. JONES, DHA, PRINCIPAL DEPUTY ASSISTANT
                SECRETARY OF DEFENSE FOR HEALTH AFFAIRS

        Dr. Jones. Thank you, Mr. Chairman. I would also like to
    thank you for the opportunity to be here and discuss the
    Nation's military health system.
        America's military health system is unquestionably the
    finest in the world. Our medical professionals have performed
    superbly on the battlefield, and their efforts have given us
    the lowest death-to-wounded ratio and the lowest disease
    nonbattle injury rate that we have witnessed in history. Once
    our medics are on the scene, a remarkable 98 percent of those
    treated survive.
        Today I'd like to touch basically on three areas: One, our
    fiscal year 2008 budget, critical and near-term financial
    issues; two, the long-term plans to strengthen our healthcare
    system; and three, our efforts to provide even a more
    integrated joint healthcare delivery system.
        Earlier this month, as you mentioned in your statement, Mr.
    Chairman, Dr. Chu and Dr. Winkenwerder appeared before the full
    Senate Armed Services Committee to address the shortcomings in
    the outpatient housing and care coordination for our wounded
    servicemembers at Walter Reed. Due to swift action by Secretary
    Gates in the establishment of an independent review group,
    combined with the DOD/VA Commission led by former Senator Dole
    and Secretary Shalala, we are already focusing on major
    bureaucratic impediments we must remove to provide our
    servicemembers and their families with the responsive, well-
    coordinated, and professional healthcare services that they
    expect and they deserve.
        We are not confining our review to just Walter Reed, but
    are conducting a broad review of all medical facilities, across
    all Services. We are examining closely the disability
    determination process, with the goal of ensuring fair,
    consistent, and timely adjudication of disability reviews
    combined with clear, regular communications with servicemembers
    and their families.
        Although our reviews require additional time to develop
    solutions in the long-term, I do want to iterate my belief
    about what has not caused the problem. The Base Realignment and
    Closure (BRAC) decision to close Walter Reed remains the
    correct one. Our servicemembers and all of our beneficiaries
    need a modern medical facility designed for health care
    delivery for the 21st century. The decision to integrate
    clinical operations of both the Bethesda and Walter Reed
    medical centers on the campus at Bethesda is based on a number
    of compelling factors.
        One, better quality. The merged medical campus will allow
    us to sustain leading graduate medical education and more
    easily integrate and share staff with the National Institutes
    of Health, which is just across the street.
        Patient access. In studying the demographics of the region,
    the new Fort Belvoir and the new Walter Reed National Military
    Medical Center will place our facilities where our population
    lives. From patient satisfaction, there is no empty space on
    Walter Reed, and if we were to increase capacity to conduct
    major renovations in that medical center, we would have to go
    wing by wing, and renovate while patients are being treated
    there, which would be disruptive to patient care, and also very
    costly because it's a very old chassis.
        Secretary Gates, in a recent statement, and at the request
    of Senator Warner, of course, has asked us to look at
    accelerating the new Walter Reed National Military Center, and
    those evaluations are underway at this time, Mr. Chairman.
        In addition to addressing the critical issues that have
    surfaced the last 2 months, we must still attend to operating
    the rest of our health care system. With our fiscal year 2008
    healthcare budget estimated at $40 billion, we need to bring
    our rapidly-growing costs under control. As we discussed
    earlier, Mr. Chairman, you're aware that if left unchanged, the
    cost to our taxpayers, by 2015, will be $64 billion, rather
    than $40 billion that we have today. This would approach 12
    percent of the DOD budget, versus the present 6 percent, which
    was in 2001; and we're at about 8 percent at our present
    funding level.
        In the meantime, we're doing everything we can to control
    our cost growth internally. We are executing our new TRICARE
    regional contracts more efficiently, we're demanding greater
    efficiency within our own medical facilities. However, one
    area, pharmacy, is particularly noteworthy. Nearly 6.7 million
    beneficiaries use our pharmacy benefit. In fiscal year 2006,
    our total pharmacy cost was more than $6 billion. If we did
    nothing to control our pharmacy cost, we project that those
    costs alone would reach $15 billion by 2015. We're taking every
    action for which we have authority, promoting our mandatory
    generic substitution policy, joint contracting with the VA,
    launching a mail-order promotion campaign, and receiving
    utilization rebates from pharmaceutical manufacturers to lower
    costs. These efforts are working. Recent legislation passed by
    Congress and other regulations limit our ability to control
    costs in the fastest growing area of pharmacy, the retail
    sector. In retail, our products cost us 50 percent more than
    the same drugs dispensed through our military treatment
    facilities or mail-order venues.
        You can help us by allowing the Department to make
    appropriate changes in the structure of our pharmacy benefit.
    These changes will accelerate use of our new home-care delivery
    program, enhance the use of generics, and give us greater
    leverage when negotiating with pharmaceutical manufacturers.
        Another area which I want to touch on is better integration
    of our healthcare system. The BRAC legislation is helping us
    drive and encouraging that integration. The medical
    infrastructure we are creating through the BRAC will better
    serve our beneficiaries through the following: improve access
    to care, allow for enhanced graduate medical education, allow
    for joint medical training for enlisted personnel, co-locate
    our medical headquarter elements, and, through the creation of
    the medical center, which we talked about earlier, create a
    Walter Reed National Military Medical Center.
        Senator, it's an honor for me to work with the military
    medical staff members who I associate with daily. They are
    exceptional and provide superb high-quality medical care, and
    we are pleased that we believe they are serving our missions of
    our servicemembers while they are at war.
        Thank you, sir.
        Senator Ben Nelson. Thank you, Dr. Jones.
        Senator Collins, do you have an opening statement that
    you'd like to make?
        Senator Collins. No, thank you, Mr. Chairman.
        Senator Ben Nelson. Okay, thank you, to the panel.
        My first question will go to Dr. Chu, relating to the
    physical disability evaluation system. Servicemembers with a
    disability rated 30 percent or higher qualify for medical
    retirement. Those with less are separated with severance pay.
    The Center for Naval Analysis (CNA) reviewed the disability
    ratings of all Services and reports that 26.7 percent of airmen
    determined to be unfit for duty receive disability ratings of
    30 percent or higher. The other Services award ratings of 30
    percent or more to far fewer servicemembers. The Army awards
    this 4.3 percent of the time; the Navy, 4.1 percent of the
    time; and the Marines, 2.7 percent. Have you gone through a
    review of each of the Services' disability evaluations systems
    to see why there is such a disparity in disability ratings of
    30 percent or more between the Air Force and the other
    Services?
        Dr. Chu. We have looked at this issue. This system is
    decentralized under broad policy guidance from the Office of
    Secretary of Defense. Let me start with that guidance.
        We are about to issue revised guidance that I think will
    bring greater uniformity of result and improved process from
    the perspective of all stakeholders in this important set of
    decisions.
        Yes, it is decentralized; therefore, you would expect to
    see some variation by Service. I'm not sure I would necessarily
    agree with the specific figures that CNA has there.
        I do know that it is interesting--and this is in contrast
    to the recent Government Accountability Office report--that
    there is a fair amount of stability within any one Service in
    the pattern of decisions, year over year; plus the fact that
    the bulk of decisions accrue from nonwar issues, that they are
    there in peacetime. A significant fraction, of course, are
    decisions about persons who have reached 20 years of service,
    retiring by virtue of longevity, not by virtue of disability.
    That is one reason that you will see some differences in
    Service figures, because the fraction of each cohort that
    reaches retirement eligibility does differ across the Services.
    There is in DOD a presumption of fitness to serve, if you have
    served for 20 years, in terms of offering a disability rating.
        Senator Ben Nelson. Now, in regard to that, if someone came
    with a 30 percent disability, and they're not retiring, would
    they receive a 30 percent disability from the Army? But what
    might they receive from the VA if they were unable to continue
    to serve?
        Dr. Chu. That's an important question, sir, as you are
    suggesting. As you appreciate, the statutes governing
    disability ratings for the two departments differ. Our statute
    emphasizes fitness to serve. The VA statute emphasizes loss of
    civilian earnings power, for which physical condition is a
    proxy. So, it is not surprising that you will get different
    ratings out of the two systems, particularly for those
    individuals being evaluated at the retirement--normal
    retirement point--in other words, people who have served 20
    years or more and who are retiring by virtue of years of
    service.
        A further reason for differences between the two Cabinet
    agencies, as you appreciate, is that the VA--ours is a one-time
    evaluation, a snapshot at the time of departure; the VA
    evaluation, however, is, properly, continuous. So, if the
    condition worsens or the effects of age exacerbate the
    condition, the VA does change the rating generally in the
    upward direction over time.
        I do think there is a fundamental question here, as we
    testified earlier to the full committee, as I know you
    appreciate, and that is: Why does the country have three
    different systems to compensate for disability in military
    Service? Social Security pays in some instances. There's one
    set of constraints about what that benefit can look like. VA
    pays in many other circumstances. DOD pays in many of those
    same circumstances. I understand, from the recipient's
    perspective, this is confusing. Should we be looking, long-
    term, after the various review panels have reported, at some
    unification of these three systems, and some clarity about the
    principles that together they should follow, as opposed to
    separate and different principles--is that a meritorious step?
    I think that's one of the big questions out there for us to
    consider.
        Senator Ben Nelson. What do you think the likelihood is
    that you could get a single system, given the differences?
        Dr. Chu. I think this goes fundamentally to the
    responsibilities on Capitol Hill and on Pennsylvania Avenue,
    and that is, can we agree on the set of principles under which
    the systems should run? In other words, is there a single
    cohesive set of principles that they are to follow? If we can
    get that agreement, I think we can devise a set of mechanisms
    that would be effective, and perhaps much less confusing and,
    one would hope, less frustrating to the beneficiary population.
        Senator Ben Nelson. Now, is it possible to go ahead and
    begin some sort of preliminary work to see what might be
    developed with principles first, and then an effort toward
    smoothing out the differences, to the extent possible?
        Dr. Chu. Yes, sir. I think we have three important sources
    of findings that can help us. In 2003, if I recall the date
    correctly, Congress required there be constituted a Commission
    on Veterans Disability. It has been working, under the
    chairmanship of retired Lieutenant General Terry Scott, these
    last several years. It has a reporting date of October 2007. I
    think that will be an important set of evidentiary findings
    from a group that has been working this problem for some time.
    Second, of course, we have the two more recently appointed
    groups, the group that is the commission created by the
    President, co-chaired by Senator Dole and Secretary Shalala,
    and then the group appointed by DOD, with former Army
    Secretaries Marsh and West as the co-chairmen. They report much
    more rapidly.
        In addition, the VA Secretary chairs a task force asking
    ``what can we do within existing law?'' We are, likewise,
    conducting similar reviews inside DOD.
        But the short answer is yes, sir, I think we can begin that
    task sooner rather than later.
        Senator Ben Nelson. All right. Would we be able to get the
    seamless transition in the process, as well? In other words, if
    you get a nearly single system, will that carry over, so when
    somebody becomes a veteran through retirement, as opposed to
    being wounded and unable to continue in the position?
        Dr. Chu. Sir, my personal belief is that, almost by
    definition if we have a single system, many of the current
    seams would disappear. There will still be record-transfer
    issues, there will still be issues how to manage cases as you
    move from one status to another. I think some of this can be
    solved with existing administrative authority. We have already
    been working, as I know you appreciate, with the VA for several
    years now on how we can make the existing system more seamless
    in character. I think we've made significant progress in that
    regard with the benefits delivery and discharge program, for
    example, with trying to create a single examination as the
    standard going forward with memorandums of agreement at every
    location in the United States now. There is more to be done on
    that front.
        Senator Ben Nelson. Dr. Jones, DOD has been working hard to
    implement a reliable, effective electronic health record
    system, called Armed Forces Health Longitudinal Technology
    Application (AHLTA). In your joint written testimony, you
    stated that the military health system has, ``successfully
    completed worldwide deployment of AHLTA.'' If this system is so
    good, why is it so difficult for DOD to provide military
    medical records to the VA in a timely manner? Is the AHLTA
    system ready to be merged with the VA's electronic records
    system to create a joint records system? If not, what more
    needs to be done to get this accomplished?
        Dr. Jones. Senator, as of November 2006, we did complete
    AHLTA worldwide, which means it's presently in all of our 138
    facilities. AHLTA, traditionally, the first phase is an
    outpatient facility, outpatient module, which, of course,
    allows us to operate on the battlefield and get that
    information back to the providers in Landstuhl, and, of course,
    back at Walter Reed or Bethesda. The VA system traditionally
    has been an inpatient system. Again, they are inpatient-based,
    historically. If you look at our priorities at the military
    health system, our next priority is an inpatient system, an
    inpatient module, that would be placed into AHLTA. The VA,
    their system, their VistA system, I understand is based on an
    older operating system called MUMPS, and they will have to
    rejuvenate that system. So, our two secretaries have asked that
    we, between the VA and DOD, do a study to see if we can't
    possibly draw up requirements where we could use the same
    system, and we're presently doing that.
        Then, our third challenge, Senator, would be, how do we
    communicate with those private physicians and private
    hospitals? Many of our beneficiaries use TRICARE, and we would
    like to be able to get those medical records back into AHLTA
    from the private sector. Of course, that's a longer-term
    solution.
        In the interim, our information technology folks in both
    the VA and DOD have been working very hard to transfer data. We
    have presently transferred 3.6 million records, which VA has
    access to those who have retired or separated from service. We
    have a number of projects ongoing which provide realtime data
    back and forth in a number of facilities. We are giving that
    great priority.
        Senator Ben Nelson. With the effort underway to merge,
    what's the timeline, if you have a hard timeline, do you
    anticipate the merger?
        Dr. Jones. The study that we are presently doing, we hope
    that that will be completed by this summer. Of course, if we
    get the green light that those requirements are like enough for
    us to have one inpatient record, then we would--again,
    implementing that, doing the necessary development work to make
    that happen, sir.
        Senator Ben Nelson. Okay.
        Secretary Hall, in your capacity as Assistant Secretary of
    Defense for Reserve Affairs--I'm going to read you the
    recommendation from the Commission on the National Guard, some
    of the recommendations, ``The Commission on the National Guard
    and Reserves recently submitted its second report to Congress.
    In the report, the Commission recommended that the grade of the
    chief of the National Guard Bureau should be increased to four
    stars, but that the chief should not be made a member of the
    Joint Chiefs of Staff.'' Now, in your view and in your
    position, are these your views, as well?
        Mr. Hall. As I mentioned, I chaired the working group on
    not only these 2, but the other 21 recommendations. I will
    submit my report tomorrow with my thoughts and comments on
    those, to the Secretary of Defense. I think it would be
    premature for me to discuss those. But I will tell you what the
    Secretary of Defense has said on the record on both of those
    issues, and he's said that, I think, in testimony and before
    two public forums, so these were what he said. I think I can
    correctly indicate. He said that if the position of the Chief
    of the National Guard Bureau has the responsibilities attached
    to it that rises to the four-star rank, he would support that.
    On the second one, he said he did not support membership of the
    Chief of the National Guard Bureau on the Joint Staff. Those
    are his two public statements on that. The rest of them, we
    will have to see after the report goes in.
        Senator Ben Nelson. Okay. So, your views are consistent
    with that conclusion?
        Mr. Hall. I support the Secretary's views on that,
    certainly. [Laughter.]
        Senator Ben Nelson. Just wanted to see if we could get you
    to stumble.
        Mr. Hall. This is my fifth hearing, so I certainly support
    those. [Laughter.]
        Senator Ben Nelson. You've been learning.
        Senator Collins?
        Senator Collins. Thank you very much, Mr. Chairman.
        Dr. Jones, I want to ask you about an issue that some Guard
    members in Maine have raised to me about what they believe is a
    gap in our system of military health care. I'm not certain
    their understanding is correct, but, if it is, it suggests
    there are situations where those who serve and have been
    injured fall through the cracks. So, I want to describe what
    these Guard members told a member of my staff.
        They pointed out that when an Active Duty servicemember
    returns from overseas and requires either physical or mental
    health care, he or she goes to the military medicine system and
    relies upon that structure. Similarly, when a reservist or a
    National Guard member who has suffered injuries--whether
    they're physical injuries or mental injuries--while on Active
    Duty, while they were deployed, and those are serious enough
    that the Guard member or reservist is separated from the
    military, he or she can turn to the VA system for treatment.
    But these Guard members who talked to my staff believe that
    there's a gap that occurs when a reservist or a National Guard
    member returns--who has suffered physical or mental injuries,
    but goes back to the civilian job and continues to drill or
    participate with the Reserves or Guard. They believe that that
    individual falls through the cracks, that they're not eligible
    for the Active Duty military system, they're not eligible for
    the VA system. Are they correct in telling me that?
        Mr. Hall. I would say we--because of what Congress passed,
    the Guard and Reserve--the TRICARE Select, last year, made
    available to all members of the Guard and Reserve, TRICARE
    Select for them and their families, regardless of whether they
    are drilling, on Active Duty, whatever the status. For a pay of
    28 percent, you can enroll either yourself or your family, so
    you may go into that system. Prior to that, we did not have
    that. But that will allow--and that's to be implemented--it's
    being worked on now, will be implemented in the fall, by which
    they can remain in the TRICARE system for this pay, even if
    they're in a drilling status or Active Duty.
        Senator Collins. I was aware of that, but that's if they
    buy into the TRICARE system. I'm talking about a guardsmen who,
    let's say, has post-traumatic stress disorder (PTSD), has come
    back, is now re-employed in the civilian sector, does not
    participate in TRICARE, let's say, is uninsured in the civilian
    job. How does that person get treatment for injuries that were
    suffered while that person was on Active Duty, the lingering
    impact?
        Dr. Chu. Senator, as I suspect you are aware, they are, on
    a lifetime basis, whether drilling or not, eligible for VA care
    for any service-connected disability
        Senator Collins. Even though they haven't separated.
        Dr. Chu. Even though they--VA care is based upon the fact
    that you were injured on Active Duty. In addition, you have a
    2-year window after release from Active Duty in which you do
    not have to have demonstrated the ailment was service-
    connected, you merely have to say, ``I think it was.'' You can
    show up at the VA. The VA opens generously its services to you.
    In further addition, on the TRICARE front, Congress, within the
    last few years, changed the statute so you have 6 months'
    coverage of TRICARE after release from Active Duty. So, taking
    it from the other way around--the 6 months TRICARE coverage
    after release from Active Duty--there's 2 years, essentially no
    questions asked, if it is even believed to be service-
    connected, VA. Once it's established it's service-connected,
    then you have a lifetime entitlement to VA care. So, if you
    have Maine Guard personnel who are complaining, I think the
    challenge is to us, how do we communicate better?
        Senator Collins. Right.
        Dr. Chu. We'll certainly take that back for action. How do
    we communicate better? ``Here is how we deal with the issue,''
    and maybe we should start with that, ``You have a problem and
    you're in this status, here's what you do,'' because there is
    recourse.
        Dr. Jones. Senator, we'll be glad to get with your staff
    and get particulars. If there's some way that we can be of
    assistance, we will do so.
        Senator Collins. That would be helpful. This came to us, as
    I said, from the Veterans Coordinating Committee in Maine. It
    sounds like there's not a full understanding of what's
    available.
        Dr. Jones. Senator, I might mention one other thing.
        Senator Collins. Yes.
        Dr. Jones. Congress, last year, of course, mandated that we
    set up a Mental Health Task Force, and that Mental Health Task
    Force has been meeting now, and will be reporting, I think,
    June/July, to the Secretary. We believe that we are, of course,
    providing adequate mental health care and coverage; however,
    this task force has been out there, been on 30 bases and
    facilities, so we will look forward to their report. Of course,
    again, they might bring up gaps that we need to look at, and we
    will do so.
        Senator Collins. Thank you.
        Another issue that I'm hearing more and more about from my
    constituents is the prevalence of traumatic brain injury (TBI)
    from explosions in Iraq that have been misdiagnosed as PTSD. A
    neurologist from Maine met with me a couple of weeks ago who
    personally had a case where there was a physical injury that
    had not been caught, and, thus, was not being appropriately
    treated. That's very disturbing, obviously, and, because of the
    number of improvised explosive devices (IEDs) in Iraq, I
    suspect we're seeing more and more TBI. What plans do you have
    to either do better screening for TBI or to have some other way
    to make sure that we're screening for this? Because it's been
    called ``The Silent Killer.'' It's difficult to detect and
    diagnose, and I'm very concerned about this, based on the
    conversations that I've had with this neurologist.
        Dr. Jones. Senator, we, too, are concerned. As you say,
    with the number of IEDs, this is getting to be a number of our
    wounded warriors impacted by that. We have invested--I say
    ``we,'' DOD and VA--considerable resources over the last 10 to
    15 years looking at TBI. But much more needs to be done. We
    have added screening questions now to our post-deployment
    assessments and our post-redeployment reassessment programs.
    We've also charged the Army, along with our Deputy Assistant
    Secretary for Force Health Protection, to look at all of the
    various programs that we have in the TBI area, and to look at a
    comprehensive approach. Again, the way ahead, as you suggest,
    and in fact, we had the discussion with the surgeons general
    this morning about that. Don Arthur, the Surgeon General of the
    Navy, he had TBI, so he has a personal professional interest in
    this. He also will be working with us to develop a plan,
    hopefully which we will have ready by August 2007.
        Senator Collins. Thank you.
        Mr. Chairman, I know that you have a whole other panel, so
    I'll submit my other question for the record.
        But just so you know what I would have asked, it has to do
    with the disparity between benefits for Guard members and
    reservists versus Active Duty now that we're treating them so
    much more alike than ever before. I will submit that one to the
    record, because I know we're going to have more votes.
        Thank you. I'm very pleased to hear about the screening
    questions on post-deployment. That is exactly what this
    physician suggested needed to be done, and I think that's
    really going to help. So, thank you.
        Dr. Jones. Thank you.
        Senator Ben Nelson. Thank you, Senator. Your other
    questions will be included in the record.
        Senator Collins. Thank you.
        Senator Ben Nelson. I've gotten the message that Senator
    Graham is unable to be with us.
        Also, we have received a statement from Misti K. Stevens
    regarding funding for DOD schools, and if there is no
    objection, her statement will be included in the record.
        Thank you.
        [The information referred to follows:]

        To the Honorable Chairman, Minority Leader, and Members of the
    Armed Services Committee, Department of Defense Education Activity
    (DODEA) schools have provided a quality education for military
    dependents through out their history. Nevertheless inadequate funding
    is threatening the standard of education the stateside branch of this
    organization, Domestic Dependent Elementary and Secondary Schools
    (DDESS), is able to provide. In fact, budget cuts have resulted in
    hazardous school environments and substandard learning opportunities
    for military dependents. Increased funding is necessary for DDESS to
    provide this crucial benefit which is well earned by our soldiers and
    their family members.
        As parents, educators and students we are troubled by the decreased
    funding for DDESS. DODEA through DDESS provides a consistent
    curriculum, a superior education as is witnessed by higher standardized
    test scores, and produces a higher percentage of graduating seniors who
    go on to attend college. The demands on military children are unique,
    for example the average military dependent will attend three high
    schools prior to graduating and will endure at least one 6-month to 12-
    month hazardous duty deployment of a parent during their high school
    career. The importance of the uniformity in curriculum, transition
    counseling, and graduation requirements provided by DODEA schools is
    essential to create an optimal learning environment for these students.
        DDESS budget cuts this year are restrictive and diminish the
    ability of administrators and faculty to provide the high standard of
    education expected of DODEA schools. While not isolated the schools
    located at Fort Campbell provide a prime example of the effects of
    inadequate appropriations. Fort Campbell High School (FCHS) had an
    operating budget of $85,000 for the 2005/2006 school year; the same
    school has received $8,300 for operational expenses as of March 2007
    for the 2006/2007 school year. The entire Fort Campbell schools which
    comprise 8 schools and a populace of 4,415 students as of March 16,
    2007 has received $108,000 for the 2006/2007 operating costs, $24.46
    per student compared to an appropriation of $7,259 per student in the
    neighboring community Clarksville County school district. Consequently,
    teacher training has stopped, transportation for study trips is no
    longer available, and funding for additional supplies ranging from
    copier paper, sheet music for chorus and toilet paper has become a
    personal economic burden to parents and administrators.
        At Mahaffey Middle School, garbage cans catch water from a leaking
    roof while a broken heating and air conditioning system produces sauna
    like conditions in some classrooms while other classes have no heat.
    These moisture problems have created issues with mold necessitating the
    removal of floor tiles which cannot be replaced due to funding
    restrictions and a false ceiling has been placed over the molded
    ceiling of the cafeteria until funding can be found to repair the roof.
    Overcrowding is yet another issue created by the lack of funding. FCHS
    was built to house 490 students; current student enrollment is 594 with
    as many as 641 students this year. There is an expected increase of 10
    to 15 percent next year. At the same time the teacher student ratio has
    increased to 1 teacher for every 30 students for the fifth grade
    students at Lucas Elementary. Furthermore, the lack of appropriations
    has led to the cancellation of all study trips, scholastic or
    extracurricular within the Fort Campbell school system. The consequence
    of budget cuts is military students are subjected to a substandard
    learning environment.
        As a Nation, we communicate several important messages to military
    dependents. One is, ``America Supports You,'' yet another is the role
    your parents play in the military is vital to the survival of our
    country. We also stress the importance of an education. Senators, we
    also teach students that actions speak louder than words. Inadequate
    funding for DDESS schools conveys a lack of support for military
    members and their families and declares that an optimal education of
    military dependents is no longer important to our country. Military
    students pay a high price for our country's safety and they deserve the
    funding required to provide teacher training, transportation for study
    trips, and the maintenance of school buildings.
                Sincerely,
                                       Misti K. Stevens

                         BIOGRAPHY OF MISTI K. STEVENS

        Misti Stevens has her BS in History graduating summa cum laude and
    her Masters degree in Secondary Education (magna cum laud). She has
    worked in a variety of capacities as a teacher, AVID tutor and
    volunteer in DODDs (Hanau, Heidelberg, and Darmstadt, Germany),
    Leavenworth, KS; Fort Leonard Wood, MO; Edwards Air Force Base, CA; and
    Fort Campbell, KY. Mrs, Stevens is a member of the Military Child
    Education Coalition and has played an active role in Army Family Action
    Planning in the areas of education and youth services. Mrs. Stevens has
    also held a number of positions in Parent Teacher Student Organizations
    across the globe and is a military spouse of 17 years with 2 children,
    ages 14 and 16, who together have successfully attended 15 different
    schools. Mrs. Stevens MeD includes research comparing DODEA and public
    schools in the Fort Leavenworth area and IEPs. After numerous
    interviews she is writing on the behalf of educators, administrators,
    and parents of various ranks throughout the Fort Campbell community.

        Senator Ben Nelson. I think there is one further question
    pertaining to cross-leveling.
        Secretary Chu, you were quoted in the Commission report
    explaining the cross-leveling issue as ``a difference in
    perspective between the operational chain of authority in the
    military service and the personnel community.'' Maybe you can
    help explain what you mean by that statement.
        Dr. Chu. Yes, sir. But let me preface it by saying that the
    Secretary has made the decision that, going forward for Reserve
    units, we will aim at mobilizing on a unit basis; in other
    words, that we should end cross-leveling as a practice, as far
    as Reserve components are concerned.
        The origin of my statement to the Commission is the reality
    that, at any moment in time, a unit has a certain number of
    people who are either missing, so a billet is not filled or
    unable to deploy for whatever reason. The Army standard is that
    Active units should have less than 4 percent in the last
    category. So the personnel community often does have to move
    people from another unit to the deploying unit, whether it's
    Active or Reserve. So, from the personnel community's
    perspective, cross-leveling is a natural phenomenon, done all
    the time, to put the unit in the right shape.
        Senator Ben Nelson. Right.
        Dr. Chu. In fact, many Army units are deploying at more
    than 100 percent strength, which means, by definition, you have
    to move extra people into the unit.
        The operational community tends to see the unit as a single
    entity, and it is somewhat opaque to that community how that
    came to be. In other words, how did those people show up? Why
    are they here? Why, when I have a formation in the morning, is
    100 percent strength standing in front of me? That was the
    difference in perspective I was trying to describe. The
    operational community would like to see it treated as a unit,
    does not like to see movement in and out, because, of course,
    that presents leadership and training challenges, but the
    reality from the personnel community is that we move people all
    the time.
        Senator Ben Nelson. Do you think that the security of the
    unit is at risk, in part because of the fact that it's a
    synthetic unit, as opposed to one that has been training and
    deployed, maybe, on other occasions, or having at least trained
    together and have operated together?
        Dr. Chu. The cross-leveling, to the extent that it was done
    in the past, was typically done before the unit training--and
    speaking now specifically of Reserve units--deployment of
    Reserve units--before the unit training began. So, it should be
    completed before the training occurs. The training by itself
    provides an opportunity for the unit to come together and to
    understand how it's going to work as an effective single body.
        Further, this is the personnel community's perspective; it
    depends, obviously, on the practice and the issues that occur
    on the battlefield--but we do send replacements to units in
    order to bring them back to the strength at which they need to
    be in order to operate effectively. So, again, there's always
    an integration and leadership challenge when that occurs.
        Mr. Hall. Could I comment just a second on that?
        Senator Ben Nelson. Yes, please.
        Mr. Hall. In my Active Duty time, I commanded a lot of
    units and a lot of squadrons, and deployed frequently, and I
    never deployed with the same unit the next year that I had the
    year before. I found that the single most important factor in
    success of a unit, and cohesion, is leadership. You were given
    new people. You were expected to exert leadership.
        Senator Ben Nelson. Okay, thank you.
        Do you feel that our troops being deployed have adequate
    training, equipment, and preparation to be deployed now?
        Dr. Chu. Yes, sir, that is our standard, that they should
    have the gear they need when they are in theater. That does not
    always mean they have that same gear back in the United States;
    and so, there may be fewer items to train on in the training
    status. They do complete, typically, training in Kuwait before
    they go into Iraq. So, again, how they leave the United States
    is not quite the status that they achieve when they arrive in
    the actual area of operations.
        But, yes, sir, that is our standard. They should be.
        Mr. Hall. I might mention I went to Kuwait, up on the
    Udairi Range, just before our troops pass over into Iraq, and I
    went out and asked each and every one of them, ``Do you feel
    you have the equipment? Do you feel you have the training?''
    Then, what we do is visit the units after they come back, and
    ask them, ``What training did we give you that was not so
    useful? What was the most useful training?'' So, we use that as
    a measure, and I'm confident that we are very close in what we
    need to do, based upon their answers, that they have the right
    equipment and the right training, both before and after they
    go.
        Senator Ben Nelson. Okay. Thank you.
        Secretary Jones, in terms of what we're attempting to do to
    smooth the relationships between the DOD and VA agencies, do
    you think we're on the right road to getting that smooth, so
    that all those differences can be either corrected or modified,
    to some extent, so that they're not as burdensome to our
    forces?
        Dr. Jones. Mr. Chairman, I think with the Joint Executive
    Council (JEC), the Health Executive Council (HEC), and the
    Benefits Executive Council (BEC) we have a closer working
    relationship with the VA. We have a strategic plan, which has
    over 20 elements and goals in it, which we monitor every day.
    If you look on the ground, as well as in headquarters, the
    local folks in the markets and the local folks here in town
    want to make it work, and I believe we're making significant
    progress.
        Senator Ben Nelson. We all understand that Dr. Chu's been
    here nine times, and I suspect it'll be ten, and we'll be
    asking you for an update, at that time, expecting to hear that
    all these things have been resolved. [Laughter.]
        Dr. Jones. Yes, sir.
        Senator Ben Nelson. All right. Thank you. The first panel
    is excused.
        Dr. Chu. Aye-aye, sir. Thank you. [Pause.]
        Senator Ben Nelson. At this time, I'd like to welcome our
    second panel, consisting of the military personnel chiefs of
    each of the military branches: Lieutenant General Michael D.
    Rochelle, the United States Army; Vice Admiral John C. Harvey,
    Jr., the United States Navy; Lieutenant General Ronald S.
    Coleman, the United States Marine Corps; and Lieutenant General
    Roger A. Brady, the United States Air Force.
        We salute your dedicated service to your respective
    Service, and to the men and women of the armed services and
    their families, and I say welcome and thank you for being here
    today.
        At this point, we would accept your oral comments. If you
    have written comments that you want to be submitted, please let
    us know and we will submit them for the record, unless you
    state otherwise.
        General Rochelle, please let us know what's happening in
    your branch.

      STATEMENT OF LTG MICHAEL D. ROCHELLE, USA, DEPUTY CHIEF OF
                     STAFF, G-1, UNITED STATES ARMY

        General Rochelle. Mr. Chairman, thank you so much for the
    opportunity.
        I'll respectfully submit for the record my written
    comments.
        Chairman Nelson and distinguished members of the
    subcommittee, thank you for the opportunity to appear before
    you today representing the more than 1 million young men and
    women who are proudly serving in this great Army of yours. I
    am, indeed, privileged and honored to represent them today.
        This All-Volunteer Force is proving itself each and every
    day. I say that for my comrades sitting here--and their
    coastguardsmen, marines, airmen, and sailors who are serving as
    well. But, as I speak to you today, nearly 600,000 soldiers are
    serving on Active Duty in 80 countries, soldiers from every
    State and territory, soldiers from every corner of this great
    Nation and country, proudly serving the people of the United
    States, and doing so with honor and distinction. We are one
    Army, with Active and Reserve Forces serving together around
    the globe, and we are truly Army strong.
        Success of the All-Volunteer Army starts with recruiting,
    Mr. Chairman. We compete today for very high quality human
    resources in a tough market, a robust economy, and with
    pressures from both industry and an improving economy, and very
    low unemployment rates.
        In 2006, the Army achieved great success, with more than
    175,000 qualified men and women answering the call to duty. The
    Active Army enlisted more qualified personnel, men and women,
    than any previous year since 1997. This year, the total Army
    recruiting mission is over 171,000 recruits; as always,
    exceeding the combined recruiting missions of all the other
    Services.
        The Army National Guard and the Army Reserve are applying
    several innovative measures to bring fully qualified men and
    women into the Reserve component. Last year, the Army National
    Guard achieved its best recruiting effort in the last 14 years,
    and we will closely monitor Reserve component, Army Reserve
    recruiting, as well as National Guard recruiting, and ensure
    that they are resourced for success, employing a number of best
    practices of the Army National Guard to bolster Army Reserve
    recruiting efforts.
        With over half the year remaining, I remain very optimistic
    that we will exceed our goals in the Active component and the
    National Guard.
        Fiscal year 2006 presented challenges in healthcare
    recruiting, and I would be delighted to address those, subject
    to your questions.
        Any recruiting program is most effective when equipped with
    the right mix of incentives. The Army's program is no
    different. Thanks to this body, sir, many new incentives
    enacted include the increased enlistment age, which brought
    nearly 600 new soldiers into the Army; the expansion of the
    $1,000 referral bonus to $2,000, which gained us nearly 2,500
    qualified soldiers in uniform; and the increase in the bonuses
    above $20,000--cash bonus--which resulted in over 5,000
    soldiers enlisted. Additionally, the Army implemented the first
    pilot program, granted us under the National Defense
    Authorization Act (NDAA) for Fiscal Year 2006--recruiting
    incentive authority, called the Recruiter Incentive Pay
    Program. This year, we will implement the next, and that is the
    Officer Accession Bonus Program. With congressional support for
    the required incentive trust fund this year, the Army expects
    the Army Advantage Fund to be a large market impact for Army
    recruiting.
        Finally, I'd like to assure you of the quality of our
    soldiers. Without exception each soldier who enlists in the
    Army is qualified for his or her military occupational
    speciality. Since the inception of the All-Volunteer Force, we
    have maintained the DOD-quality standards which are much more
    stringent than standards in statute. We do not, and will not,
    seek different standards.
        Thanks to your assistance with recruiting incentives, and
    thanks to the patriotism of the next greatest generation, we
    are meeting our recruiting goals and will grow the force to
    547,000 by fiscal year 2012.
        Our efforts to maintain your All-Volunteer Army require
    your continued support, Mr. Chairman. For the appropriate
    levels of authorities and resources, we need full support for
    the funding requested in the fiscal year 2007 supplemental and
    the fiscal year 2008 President's budget to support the Army
    manning requirements. I ask for your continued commitment to
    encourage all who are qualified to answer this Nation's call to
    duty.
        Once again, sir, I thank you for the opportunity to appear
    before you today.
        [The prepared statement of General Rochelle follows:]

               Prepared Statement by LTG Michael D. Rochelle, USA

        Chairman Nelson, Senator Graham, and distinguished members of the
    subcommittee, thank you for providing me opportunity to appear before
    you today on behalf of America's Army. The Army, over 1 million strong,
    serves proudly around the globe. As our Army is growing to meet today's
    demands, we are grateful to this committee for improving incentives and
    bonuses to attract and retain the very best soldiers. I take tremendous
    pride in this All-Volunteer Force and all it has accomplished for our
    great Nation.
        This is an All-Volunteer Force. We compete in a very tough market
    within a robust economy. We rely on your support to help the Army grow.
    Your continued support gives us the necessary tools to attract and
    retain the soldiers who serve our great Nation. Through your continued
    support, our Army will grow to meet the needs of the Nation and to
    defend America in the long war on terrorism.
        Our soldiers are this generation's heroes. They continue to make
    history, demonstrating to America that her Army is the best in the
    world. This generation shows that America can call upon the All-
    Volunteer Force time and time again to persevere in prolonged conflict.
    With your continued assistance, we will achieve the right mix of
    incentives to compensate, educate, and retain the best and brightest
    our Nation has to offer.
        The soldier remains the centerpiece of our Army. As I speak to you
    today, more than 600,000 soldiers serve on active duty. We have more
    than 243,000 soldiers--Active, Guard, and Reserve--in 76 countries, and
    another 8,000 soldiers securing the homeland. Soldiers from every State
    and territory . . . soldiers from every corner of this country . . .
    serve the people of the United States with honor and distinction.
    Soldiers fight in Iraq and Afghanistan in support of the global war on
    terrorism. Soldiers participate in homeland security activities.
    Soldiers support civil authorities on a variety of missions within the
    United States.
        More than ever before, we are one Army, with Active and Reserve
    Forces serving together around the globe.
        Additionally, a large Army civilian workforce (over 240,000),
    supports our Army--to mobilize, deploy, and sustain the operational
    forces--at home and abroad. Our soldiers and Department of Army
    civilians remain fully engaged around the world. They remain committed
    to fighting and winning the global war on terrorism.
        With help from this body, the Army continues to meet challenges in
    the Human Resources environment. In recent years, your support for
    benefits, compensation, and incentive packages ensured the recruitment
    and retention of a quality force. Today, I will provide you with an
    overview of our current military personnel posture and programs, and
    the status of our benefits and compensation packages as they relate to
    building and maintaining a quality force.

                                   RECRUITING

        Our Nation is blessed with the world's finest Army. It is an All-
    Volunteer Army that is being recruited under conditions not foreseen
    when the draft ended in 1973. Our soldiers must be confident, adaptive,
    and competent. They must be able to handle the full complexity of 21st
    century warfare in our combined, joint, and expeditionary force. They
    are the warriors of the 21st century and they became heroes when they
    enlisted.
        Recruiting these qualified young men and women in a highly
    competitive environment is extremely challenging. Competition with
    industry, an improving economy, lower unemployment, decreased support
    from key influencers, the media, and the continuing global war on
    terrorism, present significant challenges. Thanks to your support and
    the efforts of our recruiting force, the Army achieved great success in
    fiscal year 2006. The fiscal year 2006 recruiting year ended with the
    Active component making over 100 percent of its mission, U.S. Army
    Reserve accomplishing 99.5 percent, and the Army National Guard
    accomplishing 98.6 percent. This data reflects the U.S. Army Recruiting
    Command recruiting mission accomplishments and does not include
    accessions attributed to Active component to Reserve component or
    Individual Ready Reserve (IRR) to Selected Reserve Transitions. These
    results are a significant improvement over fiscal year 2005 recruiting
    results. Although these successes are noteworthy, we must all remain
    committed to meeting the challenges in the foreseeable future.
        To date, the Active Army and the Army National Guard have met their
    recruiting missions. The Active component finished February 2007 with a
    year-to-date achievement of 108 percent. The United States Army Reserve
    finished February 2007 with a year-to-date achievement of 94 percent.
    The Army National Guard finished February 2007 with a year-to-date
    achievement of 105 percent. Two components, Active and National Guard,
    are projecting successful annual missions for fiscal year 2007. The
    mission of the Army Reserve remains the most challenging of all three
    Army components this year. U.S. Army Recruiting Command and the
    Department, with help from the Army Reserve Command, are working
    together on incentives and policy changes to mitigate risk and increase
    success. With just over one half of the recruiting year remaining, the
    Army is optimistic we will meet our recruiting goals.
        Some Members of Congress have expressed concern over the quality of
    the force, when viewed by the Department of Defense (DOD) standard of
    high school diploma graduates and Test Category IV soldiers. However,
    all soldiers who enlist into the Army are qualified for their
    respective military occupation specialties--their jobs. No exceptions.
        Across America, there is an increasing trend in alternatives to the
    traditional high school. Our ability to recruit in the current
    environment--which is unprecedented in the history of the All-
    Volunteer-Force--requires innovation, as well as perseverance.
        We must recognize that those who volunteer to serve during these
    difficult times, have distinct qualities all their own. Once accepted,
    the Army molds them into a precious resource--the American soldier.

                       INCENTIVES AND ENLISTMENT BONUSES

        The Army must maintain a competitive advantage to attract high
    quality applicants. Bonuses are the primary and most effective
    competitive advantage the Army can use to attract quality soldiers.
    These bonuses help us to compete within the market and prepare for
    future conditions. The bonuses and incentives are key in filling
    critical Military Occupation Specialties in an increasingly college-
    oriented market and meet seasonal (``quick-ship'') priorities.
        College attendance rates are at an all-time high and continue to
    grow. With nearly 70 percent of the Nation's high school graduates
    intent on college attendance within the year of graduation, the Army
    College Fund is a proven performer. The Army College Fund allows
    recruits to concurrently serve their country while meeting their
    desires to attend college.
        The Loan Repayment Program, with a maximum of $65,000 payment for
    already accrued college expenses, is another incentive we offer within
    this competitive market. This Loan Repayment Program is the best tool
    for those with college education credits and student loans. Over the
    past 4 years, approximately 27 percent of Army recruits have some post-
    secondary education credits and we expect that trend line to increase.
        Other recently passed legislation assisting our recruiting mission
    includes: the increased enlistment age which brought nearly 600
    soldiers into the Army; the expansion of the $1,000 Referral Bonus to
    $2,000 increased accessions by nearly 2,500 qualified soldiers since
    enactment last year; and the increase in bonuses above $20,000 resulted
    in over 7,200 soldiers signing up.
        Further assisting our efforts to attract and retain officers, is
    the expanded Student Loan Repayment Program. It now includes officers,
    and permits repayment of a broader variety of student loans.
        The temporary Recruiting Incentives Authority under the National
    Defense Authorization Act (NDAA) of 2006 permits the Department of the
    Army to develop and test four new pilot programs for recruiting. The
    Army implemented the first pilot program, the Recruiter Incentive Pay
    Program, on June 6, 2006, and plans to implement the second, an Officer
    Accession Bonus Program not later than this summer.
        The Army Advantage Fund (AAF) is a third incentive. It will provide
    a choice between a down payment for a home loan or seed money for a
    small business loan to new soldiers. The Army expects AAF to be a major
    recruiting market attraction--the next Army College Fund. Key to
    establishment of the AAF is the creation of an investment fund. With
    congressional support for the Army Incentive Fund, currently projected
    for NDAA 2008, we will move another step in the right direction toward
    growing the All-Volunteer Force.
        Collectively, the authority to pilot these incentives are key to
    fiscal year 2007 mission achievement, and will set conditions for
    continued success in fiscal year 2008 and beyond. We rely heavily on
    your continued support for the authorities and resources necessary to
    recruit and retain the All-Volunteer Army.

                               ENLISTED RETENTION

        The Active Army achieved all retention goals for the past 9 years,
    a result that can be directly attributed to the Army's leadership and
    the motivation of our soldiers to accept their ``Call to Duty.'' The
    Active Army retained 67,307 soldiers in fiscal year 2006, finishing the
    year 105 percent of mission. The Army Reserve finished the year
    achieving 103 percent of mission and the Army National Guard finished
    at 118 percent of mission.
        In fiscal year 2007, the Active Army must retain 62,200 soldiers to
    achieve overall manning levels. This year's retention mission is just
    as challenging as the previous year's. We believe however, that we will
    accomplish this mission. Thus far, the Active Army achieved 109 percent
    of its year-to-date mission, the Army Reserve achieved 110 percent of
    its year-to-date mission, and the Army National Guard achieved 127
    percent of its year-to-date mission. Once again, a robust bonus program
    is important to continuing success in the Army's retention goals.
        We must be no less innovative in our incentives to retain soldiers
    to fight the ongoing global war on terrorism. We continue to review the
    impact of our Reenlistment Bonus Programs on retention and additionally
    use a deployed reenlistment bonus as a tool to attract and retain
    quality soldiers with combat experience. This bonus targets eligible
    soldiers assigned to units in Iraq, Afghanistan, and Kuwait. Soldiers
    can receive a lump sum payment up to $15,000 to reenlist while deployed
    to Iraq, Afghanistan, or Kuwait. The average lump sum payment is
    currently $10,400. All components benefit from this program, and
    results show the highest rates of retention among deployed soldiers.
        Retention rates of units engaged in Operations Enduring and Iraqi
    Freedom continue to exceed 100 percent. During fiscal year 2006, the
    4th Infantry Division and the 101st Airborne Division achieved 124
    percent and 132 percent of their respective retention missions while
    deployed. Currently, elements of the 1st Armored Division are deployed
    and have achieved 137 percent of their retention mission.
        Moreover, the Army has not seen a decline in retention rates from
    units that have deployed multiple times. For example, the 10th Mountain
    Division has deployed elements of its command several times since 2001,
    and has currently achieved 162 percent of its retention mission.
        Although we have seen no downward trends in overall retention, we
    monitor our mid-career reenlistment rates closely. We adjusted our
    incentive programs to target this population of soldiers. Multiple
    deployments appear to be impacting mid-career soldiers between their
    6th and 10th year of service more than any other population. Retention
    rates of mid-career soldiers has increased from 82 percent to over 93
    percent in March. We do know that soldiers are most concerned with the
    limited time at home between deployments. They would like more
    predictability on deployments, and more time, at least 24-months with
    their families, before their next deployment.
        Additionally, all components employ positive levers, including
    Force Stabilization policy initiatives, updates to the reenlistment
    bonus program, targeted specialty pays, and policy updates to
    positively influence the retention program. We will achieve fiscal year
    2007 retention success in the Active Army, the Army National Guard, and
    the United States Army Reserve.

                        OFFICER RETENTION AND ACCESSIONS

        To man the future force, the Army must increase company grade
    officer retention to keep up with the growth brought about by
    modularity. Although the fiscal year 2006 loss rates for company grade
    officers was below the 10 year average of 8.5 percent, we must continue
    to reduce this loss rate to 5 percent. A retention strategy focused on
    near-, mid-term, and long-term retention will assist our Army to retain
    more of its best and brightest officers.
        The Army has successfully grown the officer corps over the last
    several years through increased officer promotion selection rates and
    earlier pin-on time to captain and major. For example, the captain
    promotion pin-on time has dropped from 42 months to 38 months, and the
    major promotion pin on time dropped from 11 years to 10 years.
    Additionally, promotion selection rates to captain and major are
    between 95-98 percent. While promotion rates are high, we continue to
    select the ``best qualified'' officers.
        The Army developed a menu of options that is available to officers
    upon promotion to captain and prior to their completion of their active
    duty service obligation. This menu provides officers a choice of
    incentives in exchange for an additional 3 years of active duty
    service. Officers can elect to get their post or branch/functional area
    of choice; attend a military school or obtain language training; attend
    a fully-funded graduate degree program; or receive a $20,000 Critical
    Skills Retention Bonus.
        Further, the Army implemented a pre-commissioning program in fiscal
    year 2006, allowing cadets to select a branch, post, or graduate school
    for an additional service obligation of 3 years. This program has
    proven successful in just 1 year, with 1,100 participating in fiscal
    year 2006 and 1,600 expected to participated in fiscal year 2007. The
    Army expects this program to drop loss rates of United States Military
    Academy (USMA) and Reserve Officers' Training Corps (ROTC) scholarship
    source of commissioned officers beginning in fiscal year 2010 when
    these officers would have completed their normal ADS0 (4 years for ROTC
    scholarships and 5 years for USMA). Now, these officers will retain at
    7 and 8 years respectively.
        USMA cadets may agree to serve 3 years beyond their 5-year
    obligation; scholarship ROTC cadets agree to serve their 4-year
    obligation plus an additional 3-year of active duty service; and
    nonscholarship officers agree to serve their 3-year active duty
    obligation plus additional 3 years. In fiscal year 2006, over 1,100
    cadets from USMA and ROTC signed up for this program. In fiscal year
    2007, we expect over 1,500 cadets to sign up for one of these programs,
    increasing the retention rate for USMA and ROTC year group cohort to 58
    percent by year 10.
        In 2006, we offered an additional 200 fully funded graduate school
    opportunities to serving captains, beyond the 412 graduate school
    opportunities we previously provided. Officers participating in this
    program serve an additional 3 months for each month they attend school.
    We plan to send another 200 officers to graduate school in academic
    year 2007.
        In October 2006, the Army established an Officer Retention Branch
    as part of a new campaign designed to retain more of our best officers.
    Unit commanders are getting more involved in officer retention. We
    intend to manage this program like we manage the enlisted personnel
    retention program.
        The Army is confident that the implementation of these strategies
    will rapidly grow the officer force and will enable us to meet our
    manning needs by fiscal year 2010 vice fiscal year 2013 or later if we
    relied on traditional approaches for growing the force.
        To meet the long-term needs of a larger officer corps, the Army is
    increasing its Army Competitive Category (ACC) officer accession
    mission by up to 300 officers each year, over the next 3 years.
    Accessions will increase from 4,600 in fiscal year 2006 to 4,900 in
    fiscal year 2007, 5,200 in fiscal year 2008 and 5,500 in fiscal year
    2009 and beyond. This increase in officer accessions will ensure the
    Army has enough captains and majors 4-10 years from now.
        In fiscal year 2006, IAW title 10 authority, USMA increased the
    number of officers they accepted into their 4-year degree program. This
    will result in an additional 100 officers produced through USMA in
    fiscal year 2010 and beyond.
        In addition, we are leveraging other accession programs such as the
    ``Blue to Green'' Inter-service Transfer Program. To date, we have
    accessed over 325 officers into the Army from the Air Force, Navy, and
    Marines. We expect to access another 200 officers from the other
    Services in fiscal year 2007. We have also partnered with the Merchant
    Marine Academy and have contacted over 10,000 former officers that have
    separated in the past 24-months to offer them the opportunity to serve
    again.
        Through continued service, approximately 250 Reserve component
    officers volunteered to transfer to the Active component. Additionally,
    we encourage those who served honorably to serve again through a
    retiree recall or a call to active duty. Today, we have approximately
    700 retirees serving on active duty in a retiree recall status.
        Our current officer accession mission is the highest in 30 years.
    To assist in meeting this mission we will rely heavily on OCS. Though
    we increased accessions in USMA (by 100 in fiscal year 2006) and ROTC,
    those commissioning sources have longer lead times to produce officers.
    OCS is critical in meeting today's manpower needs. Since it takes time
    to increase production through USMA and ROTC (e.g. 2-4 years), as a
    short-term measure, the Army intends to maximize production from
    Federal OCS with 5 companies. Federal OCS production is expected to
    increase from 1,435 in fiscal year 2006 to 1,735 in fiscal year 2007
    and 1,985 in fiscal year 2008 to fiscal year 2010. The OCS bonus will
    help attract NCOs to go to OCS and become officers, especially as we
    increase the fiscal year 2008 OCS mission from 1,700 to 1,950. Further,
    increases in ROTC production are planned over the next 4-years from
    4,000 in fiscal year 2007 to 4,200 in fiscal year 2008, 4,500 in fiscal
    year 2009 and 5,100 by fiscal year 2010. Provided resources continue to
    flow, ROTC production is expected to reach 5,350 by fiscal year 2011.
    As ROTC production increases, more officers will be sent to the Reserve
    components and we project that we will be able to begin reducing
    Federal OCS production by roughly 200.

                                   STOP LOSS

        The global war on terror demands trained, cohesive, and ready
    units. Stop Loss is a management tool that effectively sustains a force
    that has trained together, to remain a cohesive element throughout its
    deployment. Stemming from statutory authority, (section 12305, title
    10, U.S.C), the Army's Stop Loss policy is very limited in size and for
    a very short duration on average. Losses caused by noncasualty oriented
    separations, retirements, and reassignments have the potential to
    adversely impact training, cohesion, and stability in Operation Iraqi
    Freedom (OIF) and Operation Enduring Freedom (OEF).
        Although there is not a specific end date for the current use of
    Stop Loss, the Army is committed to minimizing its use. Initiatives
    such as Force Stabilization (3-year life cycle managed units),
    modularity, and the program to Rebalance/Restructure the Active
    component/Reserve component for mix should alleviate stress on the
    force and will help mitigate Stop Loss requirements in the future.

                     INDIVIDUAL READY RESERVE MOBILIZATION

        The mission of the Individual Ready Reserve (IRR) is to provide a
    pool of soldiers who are ``individually ready'' for call-up. In January
    2004, the Army began our current IRR mobilization effort. We use the
    IRR primarily to fill deploying Reserve component forces supporting OIF
    and OEF, and to fill individual augmentation requirements in Joint
    organizations supporting combatant commanders.
        The IRR has improved the readiness of deploying Reserve component
    units and has reduced required cross-leveling from other Reserve
    component units. This effort allows the Army to preserve units for
    future operations.
        As of March 11, 2007, there are 2,071 IRR soldiers on active duty
    supporting the global war on terrorism--234 are supporting Worldwide
    Individual Augmentation requirements, 208 are supporting the 09L
    Linguist Program, 2 are replacements, and 1,627 are fillers. Another
    1,475 IRR soldiers have received mobilization orders, and are pending
    mobilization between now and January 27, 2008.
        The IRR also contributed to the manning of joint headquarters
    elements such as the Multi-National Force-Iraq, Combined Forces
    Command-Afghanistan, and others. This talent pool allows the Army to
    balance the contributions of the Active and Reserve components in these
    headquarters.
        The Army will continue to use the IRR and is implementing several
    initiatives to transform the IRR into a more viable and ready prior-
    service talent bank.
        Until now, a large number of IRR soldiers were either unaware of
    their service obligations or were not qualified to perform further
    service. Soldiers within the IRR are now identified as ``Individual
    Warriors.'' We initiated a program where IRR soldiers will participate
    in virtual musters, attend annual readiness processing, and participate
    in training opportunities to maintain their military occupational
    specialties.
        To improve soldier understanding of service commitments, the Army
    will develop and deliver expectation management briefings and
    obligation confirmation checklists to all soldiers at initial
    enlistments/appointments and, again, during transition beginning 3rd
    quarter 2007. The Army is also conducting systematic screening to
    reconcile records and identify non-mobilization assets which will
    likely result in a reduction in the current IRR population and aid in
    establishing realistic readiness reporting.

                       MILITARY BENEFITS AND COMPENSATION

        A strong benefits package is essential to recruit and retain our
    quality force. The administration and Congress have provided very
    competitive compensation and entitlements programs for our soldiers and
    their families and we sincerely appreciate this support to our soldiers
    and families.
        With help from Congress, the Army continues to develop programs to
    address our unique challenges with recruiting and retention. Congress
    has provided us the flexible tools we need to encourage our young men
    and women to enlist in the Army. The referral bonus and the bonus for
    servicemembers who agree to transfer between Armed Forces are two
    critical authorities that provide the Army the necessary assistance to
    meet its recruiting goals.
        The extension of the pay table beyond 30 years and lifting the cap
    on retired pay percentage multiplier has enabled additional successes
    with retention.
        The Army regularly looks for ways to compensate our soldiers for
    the hardships they endure while serving under the most dangerous
    conditions. The Department has requested an increase in Hardship Duty
    Pay from $750 to $1,500 and authorized payment in lump sum. We are
    continually seeking ways to appropriately compensate soldiers for the
    hardships they endure.
        The Army appreciates your emphasis and interest in soldiers and
    families, and their need for financial support when they suffer a
    combat injury or become a casualty. Soldiers perform best when they
    know their families are in good care. Many of our surviving families
    remain in Government housing for an extended period during their
    recovery from the loss of their spouses. This facilitates a transition
    from the Service, and allows their children to continue the school year
    with the least amount of disruption. The changes to survivor benefits
    ensure all soldiers and their families are treated fairly and
    equitably. The Army also implemented the Combat-related Injury
    Rehabilitation Pay (CIP) and continues to monitor pay and personnel
    issues for our wounded warriors. Recent enhancements to survivor
    benefits and other entitlements for our wounded soldiers demonstrate
    recognition of their sacrifices and a commitment to care for our own.

                                   WELL BEING

        A broad spectrum of services, programs, and initiatives from a
    number of Army agencies provide for the well-being of our people while
    supporting the combatant commander in conducting Joint and coalition
    warfighting missions. Our well-being efforts are focused on
    strengthening the mental, physical, spiritual, and material condition
    of our soldiers, civilians, and their families, while balancing
    demanding institutional needs of today's Army.

                                 SEXUAL ASSAULT

        The Army continues to operate and improve its comprehensive Sexual
    Assault Prevention and Response (SAPR) Program. Its primary goal is to
    create a climate where soldiers live the Army Values. Such a climate
    does not tolerate sexual assault crimes or attitudes and behaviors
    which condone them. Further, the climate encourages soldiers who have
    been victims of assault to come forward, without fear, knowing they
    will receive the help and care they deserve.
        Calendar year 2006 represents the first full year the Army SAPR had
    Sexual Assault Response Coordinators (SARC, civilian), military
    deployable SARC advocacy support, and the restricted reporting option.
    These changes allow soldiers to receive medical care, counseling, and
    advocacy services without undergoing a criminal investigation.
        Based on the initial assessments of the program, the Army has made
    significant progress, including: the publication of a comprehensive
    policy; the expansion of the victim advocacy component of the program;
    and the proliferation of required training throughout Army units, Army
    schools, and Army response groups.
        Recently reports of sexual assaults have risen within the Army.
    While this overall increase in reported sexual assaults is of concern,
    the Army attributes this rise partially to the implementation of the
    Army's SAPR Program and the increasing culture of awareness and
    response. To date, our efforts have empowered more soldiers to come
    forward and report these crimes. Our leaders will continue to hold
    offenders accountable and ensure victims receive the care they need.
    Over 42 percent of all sexual assault investigations completed by the
    Criminal Investigation Division (CID) in 2006 were dismissed as
    unsubstantiated, unfounded, or lacking sufficient evidence. In 2006,
    there were 1,618 reported cases across the Army. This represents a 30
    percent increase over 2005, and includes 300 restricted reports. Of the
    515 calendar year 2006 case dispositions where the commander could take
    action, over one quarter (26 percent, 136 case dispositions) were
    completed by December 31, 2006. The remaining 74 percent (379) are
    still pending.
        While the increase in reported cases may not represent an increase
    in the number of actual assaults, it does indicate the magnitude of a
    problem that continues to exist. Sexual assault has consistently been
    cited as the most under-reported violent crime in the United States.
        We will persist in our efforts to improve the Army's prevention
    efforts in addressing sexual assault. As we execute the Army's SAPR
    Program and we continue to assess its effectiveness, we will make every
    effort to improve it and make further progress toward our goal of
    eliminating sexual assault in the Army.

                           SUICIDE PREVENTION PROGRAM

        The loss of any American soldier's life is a great tragedy and a
    matter of concern regardless of the cause. In the case of suicide, the
    United States Army is committed to providing prevention and
    intervention resources.
        For 2006, the Army sustained 98 active duty confirmed suicides
    (with 3 possible cases still pending), 88 in 2005, 67 in 2004, 78 in
    2003, 70 in 2002, and 51 in 2001. Although experiencing a relatively
    high number of confirmed suicides since the beginning of the global war
    on terrorism, the Regular Army average rate per 100,000 soldiers is
    11.3 for the last 5 years (2001-2005), which is lower than the rate of
    12.1 that existed prior to the war. The Regular Army rate is also
    considerably lower than the national demographically-adjusted rate of
    19.9 per 100,000.
        Our goal is to provide our soldiers and families the best available
    support to overcome the stresses that military service entails. We
    continue to work through training, counseling, and intervention
    measures to help find alternative and appropriate ways of stress
    management. Our goal is to minimize suicidal behavior and subsequently
    the risk of suicides across the Army.

                       U.S. ARMY WOUNDED WARRIOR PROGRAM

        Soldiers suffering from severe injuries or illnesses in support of
    the global war on terrorism deserve the highest priority from our Army
    for support. These heroes need services associated with healing,
    recuperation and rehabilitation, evaluation for return to duty and, if
    required successful transition from active duty to civilian life. The
    Army Wounded Warrior Program takes to heart the Warrior Ethos, ``I Will
    Never Leave a Fallen Comrade.'' To date, the U.S. Army Wounded Warrior
    Program (AW2) Program assisted over 1,500 soldiers. As soldiers
    progress through their care and rehabilitation, AW2 facilitates
    communication and coordination among the soldier, their families, and
    relevant local, Federal, and national agencies and organizations.
        The soldiers and their families gain information concerning
    available resources and opportunities for their future. Additionally,
    the soldiers gain priority access to services they may require through
    the assistance of a dedicated Soldier Family Management Specialist
    (SFMS). Since October 2005, we increased the number of SFMS from 9 to
    47, with plans to hire an additional 2 SFMS. This reduces the average
    caseload to 32 soldiers for every SFMS. Our SFMS are currently embedded
    in 11 Military Medical Treatment Facilities and 16 VA Medical Centers
    located throughout the United States. We anticipate future expansion.
    This decentralization of operations allows our SFMS to co-locate with
    our soldiers and families nationwide for optimal support.
        To date, AW2 assisted 34 soldiers for Continuation on Active Duty
    or in an Active Reserve Status (COAD/COAR). In conjunction with the
    Soldier's Career Managers at the U.S. Army Human Resources Command, a
    5-year assignment plan was developed for each soldier.
        AW2 actively seeks employment and educational opportunities for our
    soldiers and their families. During the past year, AW2 conducted more
    than 120 office calls with interested employers. An interactive geo-
    employment locator is included in the AW2 Web site. AW2 participated in
    many Federal and State sponsored conferences and seminars to remain
    current on the latest developments and programs to assist the severely
    injured soldiers. Additionally, the AW2 staff networks with grass roots
    community organizations to discover new possibilities for the soldiers.
        To ensure soldiers receive the best treatment available, the AW2
    program has several initiatives working at this time. Initiatives
    include a third Wounded Warrior Symposium tentatively scheduled for
    summer or fall 2007, and the implementation of a Pilot Program with the
    National Organization on Disability (NOD). This program aligns an
    employment expert with a Soldier Family Management Specialist to
    enhance their ability to assist soldiers seeking employment.
        Additional initiatives include a cooperative review with the
    Department of Veterans Affairs (VA) of the current transition process
    of our soldiers from the military to VA health care system. AW2 is
    involved with the Veterans Advisory Committee on Rehabilitation, The
    Surgeon General's Traumatic Brain Injury Task Force, the Physical
    Disability Evaluation Transformation Initiative and the Office of
    Secretary of Defense/Health Affairs Family Transition Initiative. AW2
    is facilitating a DOD sanctioned study by the RAND Corporation to learn
    about severely injured and wounded soldiers' experiences in returning
    to duty.

                     PHYSICAL DISABILITY EVALUATION SYSTEM

        Consistent with the Vice Chief of Staff of the Army's action plan
    to fix the infrastructure of the current disability evaluation system,
    the Army's Physical Disability Action Plan is well underway and moving
    toward full implementation. We are committed to the well-being of our
    soldiers and are working toward the goal of a seamless transition
    between the Army and the VA. Our goal is to streamline the process and
    to eliminate confusion for our soldiers and their families. The Human
    Resources Community is actively engaged and focused on four objectives,
    which include: equity for soldiers in the disability rating process;
    disability system infrastructure support improvements; timely and
    accurate administrative processing and enhanced information
    dissemination. Additionally, the Army leadership established the Task
    Force Med Hold Brigade and is rapidly resourcing many of the personnel,
    infrastructure, and support needs originally identified by the senior
    leadership. We are ensuring that our wounded warriors are treated the
    way they so richly deserve and the way the Nation rightfully expects.
    We are grateful to Congress for your concern and attention paid to
    soldiers--and will continue to keep Congress informed as we improve
    these identified challenges.

                  CENTCOM REST AND RECUPERATION LEAVE PROGRAM

        A fit, mission-focused soldier is the foundation of our combat
    readiness. For soldiers fighting the global war on terrorism in the
    USCENTCOM area of responsibility, the Rest and Recuperation (R&R) Leave
    Program is a vital component of their well-being and readiness.
        Every day, flights depart Kuwait City International Airport
    carrying hundreds of soldiers and DOD civilians to scores of leave
    destinations in the continental United States and throughout the world.
    Such R&R opportunities are essential when units are deployed and
    engaged in intense and sustained operations. Since September 25, 2003,
    a total of 460,850 soldiers and DOD civilians have participated in this
    highly successful program. They benefit from a break from the tensions
    of the combat environment and from the opportunity to reconnect with
    family and loved ones. The R&R Leave Program is an integral part of
    operations and readiness, and is a significant contributor to our
    soldiers' success.

                            DEPLOYMENT CYCLE SUPPORT

        Deployment Cycle Support (DCS) is a comprehensive process that
    ensures soldiers, DA civilians, and their families are prepared and
    sustained throughout the deployment cycle. It provides a means to
    identify soldiers, DA civilians, and families who may need assistance
    with the challenges inherent to extended deployments. The goal of the
    DCS process is to facilitate soldier, DA civilian, and family well-
    being before, during, and after the deployment cycle.
        All soldiers deployed away from home station for 90 days or more
    complete the DCS process. Services for DA civilians and families are
    integrated in every stage of the process, and they are highly
    encouraged to take advantage of the resources provided.
        As of February 7, 2007, 480,704 soldiers completed the in-theater
    redeployment stage DCS tasks.

                               EQUAL OPPORTUNITY

        Recent newspaper reports and a Federal Bureau of Investigation
    (FBI) report concerning gangs leave the impression that gang activity
    in the U.S. Army is widespread and out of control. Reviews of both the
    recent media and FBI reports indicate that the problem was often
    overstated. In 2006, CID adopted the National Crime Information Center
    definition of a Gang and Gang Activity. This led to an increase in
    reporting over previous years. While the Army cannot state with
    certainty that no gang members exist within our Army, within our Army
    communities there are no data to support the presence of gang
    activities. The overall assessment by CID of gang activity threat in
    the Army remains low. CID and Military Police present awareness
    briefings that identify possible gang association by soldiers.
    Additionally, education, awareness, and vigilance remain the best tools
    in combating gang activities and involvement by soldiers and family
    members.

                              RETIREMENT SERVICES

        Once a soldier, always a soldier. Our efforts extend beyond our
    active duty population. The Army counts on its retired soldiers to
    continue to serve as mobilization assets and as volunteers on military
    installations. Retired soldiers are the face of the military in
    communities far from military installations. As key influences they
    often act as adjunct recruiters, encouraging neighbors and relatives to
    become part of their Army. They speak from experience.
        Retired soldiers and family members are a force of more than one
    million strong with nearly 800,000 retired soldiers and their spouses
    and family members receiving retired pay.

                                   CONCLUSION

        America's Army is strong. We continue to meet our worldwide
    commitments and provide the best led, best trained and best equipped
    soldiers to combatant commanders. We need the continued support of
    Congress for the resources to maintain and grow our Army over the long
    war.
        Just as important is your support as national leaders to affect
    influencers and encourage all who are ready to answer this Nation's
    call to duty. To ensure our Army is prepared for the future, we need
    full support for the issues and funding requested in the fiscal year
    2007 supplemental and the fiscal year 2008 President's budget to
    support the Army manning requirements given the current operational
    environment.
        I thank you for the opportunity to appear before you today and I
    look forward to answering your questions.

        Senator Ben Nelson. Thank you, General.
        Admiral Harvey?

      STATEMENT OF VADM JOHN C. HARVEY, JR., USN, CHIEF OF NAVAL
                     PERSONNEL, UNITED STATES NAVY

        Admiral Harvey. Thank you, sir.
        I have submitted a statement and would request that it be
    entered in the record.
        Senator Ben Nelson. It will be.
        Admiral Harvey. Sir, again, thank you for the opportunity
    to appear before you today. We are extremely grateful for your
    sustained support for the United States Navy which enables us
    to get the job done for this Nation every day around the globe.
    The men and women of our Navy continue to perform exceptionally
    well, helping to bring certainty to an uncertain world. Our
    Navy total force continues to perform its traditional at-sea
    role as we see today with the dual battlegroup operations being
    carried out in the Persian Gulf at a particularly sensitive
    time, while increasing our support in nontraditional missions,
    as we see today with over 12,000 sailors on the ground in Iraq
    and Afghanistan contributing to operations there. Our challenge
    is clear: sustain our core capabilities and readiness while
    building a future fleet increasingly capable of applying
    influence from the sea, in the littorals, and ashore.
        For the past 5 years, our focus has been on sizing the
    force, ensuring we had the right number of billets and filling
    every billet with a sailor. Today, we are focusing on shaping
    and stabilizing the force, ensuring we have the right fit
    between the knowledge, skills, and abilities required by a
    billet and those possessed by the sailor filling that billet,
    ensuring that we can easily adjust both, based on changes in
    future warfighting requirements. This shift in focus from fill
    to fit requires profound changes in the way we do business, in
    our recruiting, personnel management, distribution, training,
    and compensation processes, in order to meet the challenge of
    delivering tomorrow's force.
        It is one of my core beliefs that Cold War era recruiting
    and retention strategies will not sustain us into our future,
    given a shrinking talent pool with decreased propensity for
    military service. Changing demographics reflecting significant
    growth in immigrant and minority populations present both
    challenges and great opportunities to capitalize on America's
    growing diversity, and will yield a stronger, more cohesive,
    and more capable fighting force. Low unemployment and sustained
    economic growth are increasing the competition for the best and
    brightest talent in our Nation. Meeting our recruiting goals
    for a high quality force that we must have in the future is
    becoming increasingly challenging, particularly in specific
    critical skill areas.
        Retention dynamics are also changing, as a new generation
    of sailors, influenced by a variety of career choices, offering
    portable incentive packages and exceptional training and
    education opportunities are less likely to remain with a single
    employer for a long career. They will opt instead for frequent
    job changes over that career.
        While our existing pay and compensation, personnel
    management, and retirement systems have served us
    extraordinarily well over many generations, it is now time to
    consider comprehensive reform. It is imperative that we
    establish a competitive, fair, and flexible construct
    responsive to today's rapidly changing operational and market-
    based environment. We seek your support for military pay
    reforms essential to keeping faith with our troops and
    responding to changing circumstances. Consolidating more than
    60 existing special incentive pays into roughly 8 pays, with a
    sufficient expenditure ceiling, would offer a host of
    advantages in efficiency, flexibility, and effectiveness.
        Improved agility is also needed in our personnel management
    authorities, policies, and practices. For example, existing
    Defense Officer Personnel Management Act (DOPMA) grade
    limitations inhibit our flexibility to align our personnel to
    current and projected force-structure requirements. We have
    become a far more joint and senior force, reduced in size, but
    with a vastly increased warfighting capability. As our end
    strength stabilizes, our need for more senior and experienced
    sailors to serve in this joint force continues to increase. We
    are currently operating at the very limits of our statutory
    control grade limits. Consequently, we are suppressing billet
    grades to comply with our statutory constraints.
        Similarly, adjustments to military-grade authorities are
    important in recognizing the contemporary responsibilities of
    our senior enlisted force, particularly those in the top two
    enlisted ranks. A modest increase in authorization would
    address emerging requirements for senior enlisted leadership
    for an increasing number of high-tech less-manpower-intensive
    units featuring robust capability.
        Limited military personnel demonstration authority similar
    to that authorized for civilian personnel would allow us to try
    different approaches to contemporary problems, identify the
    best of breed, and present the solution to you in Congress in
    the course of seeking new legislation. Such pilot authority can
    accelerate productive change in shaping and developing our
    military force.
        As we build the future Navy and prepare our people to meet
    the demands of this very dynamic and dangerous world, we will
    continue to improve total force readiness, stabilize our force,
    and increase our capability to respond whenever and wherever
    called upon.
        Thank you, again, sir, for your unwavering support for our
    sailors. I am now prepared to answer any questions you may
    have, sir.
        [The prepared statement of Admiral Harvey follows:]
              Prepared Statement by VADM John C. Harvey, Jr., USN
        Chairman Nelson, Senator Graham, and distinguished members of the
    Personnel Subcommittee, thank you for providing me with this
    opportunity to appear before you today.
        The one constant in our world today is change. The post-September
    11 security environment has extended Navy missions to include both
    traditional and nontraditional operations. In addition to our core
    missions we are responding to multifaceted security challenges related
    to the global war on terror. We find ourselves working with familiar
    allies, former adversaries, and an expanding set of global partners.
        In the past year, 51,943 Active component officers, 293,818 Active
    component enlisted, 12,740 Reserve component officers, 56,647 Reserve
    component enlisted, and 174,416 civilians in our Navy helped bring
    certainty to an uncertain world. They provided ``boots on the ground''
    support to combat operations in Iraq and Afghanistan. They delivered
    food and shelter to the victims of the earthquake in Pakistan. They
    fought piracy and participated in Theater Security Operations in the
    Horn of Africa. They provided medical care and comfort to citizens in
    Indonesia, Malaysia, Bangladesh and the Philippines. They protected the
    seas and seized illegal drugs in the Caribbean. They stood watch on
    ships in the Persian Gulf providing a formidable deterrent to Iran.
    They flew combat sorties in Operations Enduring Freedom and Iraqi
    Freedom, provided security for oil platforms and conducted civil
    affairs missions in Afghanistan.
        The men and women of the Navy's Total Force--Active and Reserve
    sailors, civilians, and contractors--are the United States Navy. In
    2006, this nation and the world asked much of the United States Navy--
    and Navy answered that call.
        The challenge for Navy today is to sustain our core capabilities
    and readiness while at the same time build the future naval fleet and
    develop a Navy workforce that can operate, fight and lead in a variety
    of challenging environments. Our goal is to ensure naval power and
    influence can be applied at or from the sea, across the littorals, and
    ashore, wherever and whenever required.
        The rapidly expanding requirements posed by the Nation's maritime
    strategy demand that Navy be composed of a more capable and versatile
    workforce. This workforce is, and will be, a diverse Navy Total Force,
    collectively possessing the wide array of knowledge, skills and
    abilities required to deliver critical warfighting capability to the
    joint force.
        We recognize that this requires a profound change in the way we do
    business--that the recruiting, personnel management, training, and
    compensation systems of the past will not deliver the workforce of the
    future.
        Recruiting and retention strategies that were effective during the
    Cold War, when we had a robust labor market, will not sustain us during
    this long war when there is a shrinking talent pool and decreased
    propensity to join the military. Major demographic shifts, reflecting
    an influx of new immigrants and growth in minority populations, will
    require that we focus on the talent resident in the diversity of our
    population and how we gain access to that talent. To the degree that we
    represent our Nation, we are a far stronger, more relevant Navy Total
    Force.
        A stronger economy, with low unemployment and positive economic
    growth, means there will be greatly increased competition for the best
    talent in our Nation. Recruiting the Total Force will become even more
    challenging with slower overall population growth and an aging
    workforce.
        The dynamics of retention have shifted from long-term commitments
    to a new generation, most of whom expect to change employers, jobs and
    careers several times in their working life, and are clearly motivated
    differently than previous generations. They have more choices than ever
    before, and are more technologically savvy. They expect innovative and
    flexible compensation policies, a commitment to continuing education
    and professional development opportunities.
        Our Basic Pay Table that was first conceived in 1922 and an officer
    personnel management system codified in the late 1970's. Our current
    military retirement compensation principles were essentially
    established in 1870 based upon a voluntary retirement of officers at 30
    years of service and fixed retirement pay at 75 percent of the
    officer's base pay. Perhaps it is time to re-examine existing
    compensation policies with an eye towards establishing a construct that
    is competitive, fair, flexible, and sufficiently responsive to an ever-
    changing operational and market-based environment.
        As we build the Navy of the future and prepare our people to answer
    the challenges of our dynamic, dangerous world, we must continue to
    improve our Total Force readiness, stabilize our workforce, and develop
    policies that bring forth the promise of our people, ensuring full
    development of their personal and professional capabilities.

                           NAVY TOTAL FORCE READINESS

        We are a maritime nation. Throughout American history, naval forces
    have played a key role in fighting wars, defending freedom of the seas,
    and providing a formidable deterrent to aggression. Our Navy is the
    world's preeminent sea power. We are always ready and able--anytime,
    anywhere.
        America's All-Volunteer Force has been an overwhelming success.
    This force has proven to be successful not only during peacetime, but
    also during sustained periods of conflict. Our Navy Total Force serves
    because they want to serve. Young Americans are choosing military
    service, even during these trying and uncertain times. We are
    attracting better educated and more highly-skilled recruits far more
    representative of the diversity of our great Nation than at the end of
    the Vietnam-era draft. The sailors we need are ``staying Navy.''
        In 2006, Navy achieved 100 percent of our Active component enlisted
    recruiting goal, and 104 percent of our Active component enlisted
    retention goal. We met 88 percent of our Active component officer
    accession goal, and 99 percent of Active component officer end strength
    goal.
    Global War on Terror-Centric Communities
        While we met individual recruiting and retention goals for most
    ratings and designators in the Active and Reserve components, our
    engagement in the long war has increased operational tempo (OPTEMPO)
    and clearly stressed the readiness of global war on terror-centric
    communities. These communities include: Naval Construction Force
    (SEABEEs), Naval Special Warfare (NSW) and Naval Special Operations
    (NSO) (SEALs, EOD, SWCC), and our health professionals. We have been,
    and continue to be, concerned about the long-term strength and health
    of these communities. We have identified programs to help address the
    challenges, and we are optimistic about meeting future commitments.
    Naval Construction Force
        Our SEABEE force is in very high demand and continues to be under
    considerable stress due to the increased number and length of
    operational commitments. Despite this challenge, the Naval Construction
    Force (NCF) sets the example in volunteerism, as evidenced by higher-
    than-planned reenlistment and retention rates, and high volunteer rates
    for multiple Operation Iraqi Freedom (OIF)/Operation Enduring Freedom
    (OEF) tours. On average, 18 percent of the NCF Reserve component forces
    going into OIF/OEF have volunteered for a second or third mobilization
    to theater. The latest approved Reserve component SEABEE rotation into
    OIF had a 39-percent volunteer rate for a second or greater deployment.
        Navy deployed 8 Active and 12 Reserve Naval Mobile Construction
    Battalions (NMCB), with their associated regiments (2 Active and 4
    Reserve). To meet global war on terror requirements, there are two
    NMCBs in OIF, one in OEF, one in PACOM, and one with a nominal presence
    in EUCOM. This is a Total Force deployment of both Active Duty and
    Reserve NMCBs.
        We have identified the need to expand the number of battalions and
    enhance our Reserve mobilization plans. As a result, for 2007, Navy
    added a ninth Active component NMCB. We are also pursuing a detailed,
    phased remobilization plan for use by the Reserve component NMCB in
    fiscal year 2009. We believe this integrated deployment plan for the
    NCF is sustainable through fiscal year 2014.
    Naval Special Warfare and Special Operations
        Our NSW and NSO communities not only face the pressures of high
    OPTEMPO, but are further stressed by specific recruiting and retention
    challenges. The health of the NSW/NSO communities is critical to the
    Navy's success in the global war on terror and requires us to place
    special emphasis on the overall readiness of these highly specialized
    communities.
        In 2006, recruiting efforts resulted in NSW/NSO attaining 55
    percent of a QDR based increased goal. Navy met 37 percent of Explosive
    Ordinance Disposal (EOD), 59 percent of SEAL, 65 percent of Special
    Warfare Combat Crewman (SWCC), and 46 percent of Diver recruiting
    goals. As of December 2006, we had retained 79 percent of EOD, SEAL,
    SWCC, and Diver Sailors in Zone A (between 17 months and 6 years of
    service), 82 percent in Zone B (between 6 and 10 years of service), and
    89 percent in Zone C (between 10 and 14 years of service).
        To improve recruiting and retention in the NSW/NSO communities,
    Navy doubled the size of the recruiting force whose primary mission is
    NSW/NSO accession. We increased Enlistment Bonuses for each of the
    communities: $40,000 (SEAL), $18,000 (SWCC), $30,000 (EOD), and $25,000
    (Diver). SEAL Motivators have been assigned for all 26 Navy Recruiting
    Districts (NRD) to test and mentor potential NSW/NSO applicants. Each
    NRD designated a military member to assist SEAL Motivators in
    supporting applicants.
        In 2007, we will take additional steps to enhance NSW/NSO
    recruiting efforts. Commander, Navy Recruiting Command (CNRC) will
    reassign additional recruiters to the NSW/NSO recruiting effort. Six
    selected NRDs will designate one recruiter per zone for NSW/NSO leads
    identification. This designation realigns 52 recruiters from other
    recruiting efforts. A SEAL Working Group (SWG) will address all current
    and future SEAL recruiting issues. The SWG is headed by Navy's senior
    SEAL officer and CNRC. We are also piloting a NSW/NSO recruit division
    at Recruit Training Command to increase camaraderie, improve RTC
    Physical Screening Test (PST) pass rate, and reduce program attrition.
        The unique skill sets of the NSW/NSO communities demand the most
    extensive Navy training, and require exceptionally bright, physically
    fit and mentally tough individuals. Recently, it has been a challenge
    to provide a sufficient quantity of qualified applicants able to pass
    the NSW/NSO PST at Recruit Training Command (RTC). To improve readiness
    in the NSW/NSO communities, Navy implemented initiatives in physical
    training preparedness to ensure candidates are physically able to pass
    the PST at RTC.
        Health Professionals
        Navy remains committed to providing quality care for all
    beneficiaries and continuing to support OIF/OEF with medical personnel.
    One of the main challenges has been ensuring sufficient numbers of
    health professionals in critical wartime specialties. We continue to
    focus on refining and shaping our force to recruit, train, and retain
    the right mix of uniformed and civilian health providers thus
    sustaining the benefits of our healthcare system while meeting
    operational commitments.
        Generally, medical professionals do not consider the military for
    employment. Civilian medical professional salaries are still more
    lucrative than military pay and continue to outpace the offer of
    financial incentives (bonuses and loans) to our target market.
    Excessive education debt load is a major concern for medical
    professionals who turn to low-interest education loans outside the
    military. Other challenges include concerns over excessive deployments/
    mobilization, especially in meeting Reserve component goals, and fear
    over the potential loss of private practices.
        In 2006, the Navy achieved 75 percent of Active component medical
    specialty mission, a 17-percent improvement over fiscal year 2005. We
    achieved 45 percent of Reserve component medical specialty mission, a
    27-percent decline from fiscal year 2005.
        In the Active component, we achieved 70 percent of Medical Corps
    (MC) accession goal, 75 percent of Dental Corps (DC) goal, 83 percent
    of Medical Services Corps (MSC) goal, and 92 percent of Nurse Corps
    (NC) goal. The Health Professions Scholarship Program (HPSP), the
    student pipeline for the majority of Navy physicians and dentists, is
    cause for concern. MC HPSP recruiting achieved just 66 percent of goal.
    DC HPSP recruiting achieved 76 percent of goal.
        In the Reserve component, we met 24 percent of MC accession goal,
    46 percent of DC goal, 29 percent of MSC goal, and 85 percent of NC
    goal. Five year Active component retention rates for these communities
    stand at 75 percent for MC, 51 percent for DC, 83 percent for MSC, and
    65 percent for NC.
        We are much more optimistic with our recruiting efforts of Hospital
    Corpsman (HM). We met 99 percent of Active component enlisted HM
    recruiting goal and 94 percent of Reserve component enlisted HM
    recruiting goal. From January 2006 to January 2007, we retained 52
    percent of HM sailors in Zone A, 55 percent in Zone B, and 84 percent
    in Zone C. HM is slightly below overall Navy retention rates for Zone B
    but is increasing. The other two HM zones are either at or exceed
    overall Navy retention rates and exceed goal.
        This past year, Navy implemented numerous incentives for health
    professionals, including tuition assistance, bonuses, financial aid
    incentives, and loan repayment programs. Our Medical, Dental, and MSC
    (Optometry) Health Professional Scholarship Program (HPSP) provides
    full tuition, books, and a monthly stipend to students. Navy's
    Financial Assistance Program (FAP) provides medical/dental residents a
    monthly stipend and an annual grant.
        Retention beyond the first career decision point is a significant
    challenge for the Dental Corps. More than 70 percent of Dental Officers
    leave the Navy at this point. Navy has funded, and is about to
    implement, a Critical Skills Retention Bonus (CSRB) for General Dental
    Officers with 3 to 8 years of service. This 2-year $40,000 bonus is
    expected to address Navy's retention for these officers. With
    enhancements included in the National Defense Authorization Act (NDAA)
    for Fiscal Year 2007, we are contemplating implementation of future
    Dental Corps Accession Bonus increases. The NDAA for Fiscal Year 2006
    authorized oral surgeons a $25,000 per year Incentive Special Pay,
    which 69 out of 70 eligible oral surgeons accepted in August 2006. Navy
    is currently contemplating a recommendation to authorize a $60,000 4-
    year CSRB to abate a shortage of clinical psychologists within our
    mental health system.
        Navy currently provides bonuses for the Nurse Corps Direct
    Accession (DA) Program at $15,000 for a 3-year obligation, and $25,000
    for a 4-year obligation. Navy has combined the 3-year accession bonus
    with the Health Professional Loan Repayment Program, which offers
    $32,000 for a 2-year commitment, creating an extremely successful
    incentive package. Combined with a 3-year accession bonus, the officer
    incurs a combined active duty obligation of 5 years. We anticipate that
    Nurse Corps will meet its direct accession goal for the first time in 4
    years. We also have a $20,000 Critical Skills Accession Bonus for
    Medical/Dental HPSP recipients. We provide a $30,000-$60,000 sign-on
    bonus and/or affiliation bonus for specific medical/dental specialties.
        We appreciate congressional support for the numerous Medical
    Recruiting and Retention incentive enhancements enacted in the NDAA for
    Fiscal Year 2007. Such enhancements, coupled with an increase of over
    $21,000 in medical special and incentive pays between fiscal year 2006
    and fiscal year 2007 are expected to contribute in a significant way to
    attainment of medical recruiting and retention goals.
    Language, Regional Expertise and Culture
        Because the global war on terror is truly global and stretches far
    beyond Iraq and Afghanistan, Navy continues to focus significant effort
    on transforming and enhancing our expertise in foreign language,
    regional expertise and cultural awareness.
        Navy implemented a Language, Regional Expertise and Culture (LREC)
    strategy that galvanizes and aligns related efforts across the Navy
    Total Force. We surveyed existing language proficiency within the
    workforce, increased bonuses for language competencies, initiated a
    focused effort in heritage recruiting, established a new Foreign Area
    Officer (FAO) community, and implemented training and education
    programs in regional issues.
        Navy conducted a foreign language census of the workforce, which
    yielded over 138,000 assessments of proficiency in over 250 different
    languages, many in global war on terror-related dialects and many at
    the native-level skill. To systematically capture foreign language
    proficiency in the future, Navy began mandatory foreign language
    screening at military accession points.
        Navy has tripled foreign language bonus rates (up to $1,000 per
    month for more than one language) and extended eligibility for the
    Foreign Language Proficiency Bonus (FLPB) beyond Navy career linguists
    (e.g., cryptologists and FAOs) to include any sailor, Active component
    or Reserve component, with fluency in critical languages. Since June
    2006, Navy FLPB applications have grown almost 200 percent, with
    approximately 3,000 payments made each month, and increasing at a rate
    of roughly 200 per month.
        The Heritage Recruiting Program accesses sailors from the Nation's
    immigrant communities with native-level language skill. The program
    offers a special enlistment bonus of up to $10,000 for qualified
    language proficiency, and attempts to place sailors in occupational
    specialties offering the greatest opportunity for their use.
        A forward leaning FAO community was established within the
    Restricted Line, accessing an initial cadre of 74 FAOs. We plan to
    access 50 officers a year with a goal of maturing the FAO community to
    400 officers by 2015. We are currently exploring development of a
    Reserve component FAO program and are in the early stages of defining
    the Reserve component FAO requirement. We will realign and redistribute
    existing PEP billets, as feasible, to accommodate new and changing
    international relationships with existing and emerging partners.
        The Naval Post Graduate School Regional Security Education Program,
    which deploys faculty to carrier and expeditionary strike groups
    underway, was expanded in scope and fully funded across the Fiscal
    Years Defense Program. Naval War College (NWC) integrated regional
    content into its senior and intermediate resident curricula, providing
    students with the equivalent of a minor in one of five major regions of
    the world. Instruction is tailored for online delivery to primary
    officers (O1-O3 and CWO) and senior enlisted. NWC has programmed to
    further adapt the instruction for junior and middle enlisted in fiscal
    year 2008. The newly established Center for LREC in Pensacola, Florida,
    coordinates delivery of culture and survival-level language training
    for individual and unit deployers.
    Individual Augmentation
        Many communities of our Navy Total Force, beside the global war on
    terror-centric communities, are supporting the global war on terror. As
    of December 28, 2006, we have deployed or mobilized 45,194 sailors--
    12,124 Active component and 33,070 Reserve component--as Individual
    Augmentees (IAs) since the beginning of OEF. Almost 75 percent of IAs
    are employed using their core Navy competencies such as, electronic
    warfare, airlift support, cargo handling, maritime security, medical
    support, explosives engineering, construction.
        Under the umbrella of Task Force Individual Augmentation (TFIA), a
    collaborative effort involving Fleet and major headquarters commanders,
    we have made significant progress improving notification, processing,
    deployment support, and recognition of duty for IAs. We increased
    average notification time from less than 30 days to over 60 days. Navy
    leveraged Active-Reserve Integration (ARI) efforts by processing all
    active duty sailors on IA tours through one of four Navy Mobilization
    Processing Sites (NMPS). We established an Expeditionary Combat
    Readiness Center within the Naval Expeditionary Combat Command to serve
    as a primary interface with IAs and their families. Navy is ensuring
    Sailors serving on IA remain competitive for advancement by providing
    specialty credit for IA tours, points toward advancement, and
    flexibility in exam taking.
        We will continue efforts to enhance predictability and stability
    for IAs and their families. Our goal is to do everything we can to
    enable them to plan--professionally and personally--for these tours.
    Navy will give priority for follow-on assignments, preclude back-to-
    back deployments and increase geographic stability. We are developing
    options for shifting the sourcing of all joint warfighting requirements
    into mainstream detailing processes, providing transparency, and
    ensuring longer ``lead times'' to improve Sailor readiness and family
    preparedness.
    Sailor Readiness and Family Preparedness
        Sustaining combat readiness--Fleet readiness--now and in the
    future, starts with our sailors and their families. We remain committed
    to ensuring that sailors are physically, mentally and professionally
    prepared to fulfill their missions, and that their families are
    prepared for the challenges associated with lengthy separations. As
    members of the Navy community, our family members are entitled to
    quality programs and resources to support them and meet their needs
    while their loved ones are deployed.
        Navy continues our emphasis on sailor readiness and family
    preparedness through targeted efforts in fitness, education, and
    professional development, financial management training, support to
    disabled and injured sailors, and child and youth programs.
        Fitness
        Navy established new fitness standards, training and support.
    Improved remedial programs assist sailors in meeting new physical
    fitness assessment standards. We introduced state-of-the-art fitness
    equipment and support services to all Navy afloat commands, as well as
    sites ashore in the 5th Fleet area of responsibility. In the future,
    all Navy fitness centers will establish programs and services to
    increase physical activity and nutrition awareness for our Total Force.
        Education and Professional Development
        The Advanced Education Voucher (AEV) program was implemented to
    provide off-duty educational opportunities and financial assistance to
    senior enlisted personnel (E7-E9) in pursuit of Navy-relevant post-
    secondary degrees. We increased the number of semester credit hours of
    advanced education available through the Tuition Assistance (TA)
    program, and continue paying up to $250 per semester hour.
        Financial Management Training
        With the help of congressionally-supported regulation, we are
    protecting sailors and their families from predatory lending practices
    through an aggressive plan to improve financial literacy. Our personal
    financial management career life-cycle training continuum was revamped.
    Accredited financial counselors are now positioned at all Fleet and
    Family Support Centers. A series of communications and advocacy
    campaigns will heighten awareness of predatory lending at all levels of
    leadership. Senior Navy leadership will continually monitor trends and
    partner with key financial organizations to improve the financial
    literacy of sailors and their families. We will work closely with the
    other Services, OSD staff, FDIC, FTC, and other regulatory agencies to
    develop and implement regulations for predatory lending restrictions
    enacted in the NDAA for Fiscal Year 2007.
        Support to Injured Sailors
        Through our Safe Harbor Program, Navy provided 114 severely injured
    sailors, including 103 Active component and 11 Reserve component,
    timely access to available resources and support. Currently, 92 sailors
    are being actively tracked and monitored including 34 severely injured
    last year in OIF/OEF. We offer pre/post separation case management and
    deployment health assessments. Navy coordinates benefits with the
    Departments of Veterans Affairs and Labor, and other service providers.
    The Task Force Navy Family Functional Plan, based on lessons learned
    from the aftermath of hurricanes Katrina and Rita, enhances our
    response capabilities for future catastrophic events.
        Child and Youth Programs
        We are offering quality child and youth care programs to Navy
    families, which meet or exceed the national accreditation standards,
    and satisfy 69 percent of the potential need for child and youth
    program spaces. Given the additional spaces achieved by congressional-
    sponsored military construction projects and other OSD sponsored
    facilities, the Navy will achieve 71 percent of the potential need for
    child and youth program spaces in 2007.
        The positive impact of these programs is reflected in the
    stabilization of Navy's divorce rates, declining rates of alcohol and
    drug abuse, as well as a lowering of the number of substantiated cases
    of spouse or child abuse.
        Basic Housing Allowance
        We welcome Congress' decision to return funding for Basic Allowance
    for Housing and Facilities, Sustainment, Restoration, and Modernization
    to the traditional Defense Appropriations accounts in fiscal year 2008,
    and we hope that Congress will afford us with ample transfer authority
    during fiscal year 2007 to effectively manage these accounts.
    Sea-Shore Rotation
        Enhancements to our Sailor readiness and family preparedness are
    critical because we are a sea-centric force. Navy's first priority is
    to properly man sea duty and frontline operational units. This means
    placing a higher priority on utilizing sailors ``at sea.'' As the
    number of Navy missions and operations increases, and as we continue to
    make adjustments to stabilize the Navy workforce, we have, and will
    continue to, become more sea-centric.
        Initial analysis indicates that while it will be possible to
    sustain a more sea-centric military workforce, it will be more costly.
    This is due not only to normal cost-of-living increases, but also to
    increased costs of compensation, training, and recruiting and retention
    incentives.
        Navy continues to evaluate options for rotation of the workforce as
    we become more sea-centric. We are in the early stages of determining
    how to transition our current sea-shore rotation business practices to
    achieve four desired outcomes for our people: geographic stability,
    deployment predictability, increased professional and personal
    development, and continually satisfying work.
        The Navy's Total Force is ready. We are meeting most recruiting and
    retention goals, addressing stress in global war on terror-centric
    communities and for IAs, developing new capabilities and communities,
    and preparing our sailors and their families for a more sea-centric
    force.
        It is not enough to be ready today. We must look forward and
    predict our future requirements. We must continuously assess the size
    of our total Navy workforce, and make the necessary course corrections
    to shape and stabilize our workforce based on anticipated future
    requirements.
             sizing, shaping, and stabilizing the navy total force
        For several years, our focus was on sizing the force--ensuring we
    had the right number of billets, and filling every billet with a
    sailor. Today, we are focusing on shaping and stabilizing the force--
    ensuring we have the right fit between the knowledge, skills and
    abilities required by a billet and those possessed by the sailor
    filling that billet, and ensuring we can easily adjust either based on
    changes in warfighting requirements.
        The goal of sizing the force is to determine the right number of
    billets required to meet current and future warfighting requirements.
    The goal of shaping the force is to ensure we have the right type of
    individual available in our workforce to fill those billets. The goal
    of stabilizing the force is to have a personnel management system that
    can proactively respond to changes in warfighting requirements.
        Sizing the Total Force
        After the initial post-September 11 workforce surge, Navy started
    reducing end strength in a controlled manner commensurate with
    reductions in force structure and our infrastructure. We were reducing
    manpower in conjunction with a decrease in the number of ships and
    aircraft. We were focused on reducing the number of people in each
    component of the Total Force.
        In 2006, Navy shifted from this platform-based manpower
    determination approach to capability-based personnel management. Based
    on extensive analysis of the current and future warfighting needs, we
    forecasted that the Active component manpower required to provide the
    necessary capabilities is approximately 322,000 for a force structure
    of 313 ships and approximately 3,800 aircraft. As a result, we are now
    ``exiting the glide slope''; that is, we are planning to stabilize the
    Navy Active component workforce around 322,000 by fiscal year 2013.

        Our analysis also allowed us to evaluate the quality of fit between
    the work that needed to be done and the skill sets of the sailors
    assigned to do that work. In some cases, we identified work currently
    performed by sailors that could be done more efficiently by employing
    new technologies, decommissioning manpower-intensive platforms,
    improving training or work processes, or altering the mix of military,
    civilian, and contractor resources.
        As we move toward an Active component workforce of approximately
    322,000 in fiscal year 2013, we will decrease Active component strength
    by approximately 14 percent between 2003 and 2008. It is extremely
    important to note, however, that during this reduction, the overall
    cost of our manpower will rise by almost seven percent. Not only will
    accessing and retaining our Sailors be generally more expensive, but,
    as skill requirements increase, the cost to train, educate and retain
    them will increase, as well. It is imperative that our force be
    effective and cost-efficient as we ``exit the glide slope.'' We can not
    afford--operationally or fiscally--anything less.

    Shaping the Total Force
        In order to shape an appropriately skilled Active component
    workforce sized at 322,000, Navy must utilize all force-shaping tools
    at our disposal. We must also look for new strategies such as DOPMA
    grade-relief and innovative compensation programs. We need to apply
    both small adjustments and major course corrections in order to shape
    our force into a smaller, more effective and cost-efficient Total
    Force.
        Rating Merger
        Navy reviewed its ratings (i.e., job specialties) to ensure we
    provide the fleet with the right skill mix and reduce redundancies.
    Since 2003, the total number of enlisted ratings has been reduced from
    81 to 77. Twelve ratings were disestablished through mergers that
    better reflect sailors' skill sets and duties performed. Eight ratings
    were established to align ratings to changing technology and emerging
    skill sets.
        Rating Conversion
        Perform to Serve (PTS) is a rating conversion program that permits
    sailors in overmanned ratings to switch to other ratings that are
    undermanned. The goal is to align our Navy personnel inventory and
    skill sets through a centrally managed reenlistment program, and to
    instill competition in the retention process. Since inception 4 years
    ago, more than 6,400 sailors have been guided to undermanned ratings,
    and more than 98,800 have been approved for in-rate reenlistment.
        Voluntary Separation
        Voluntary Separation Pay (VSP), enacted in 2006, has been a useful
    addition to our force shaping tools by providing a financial incentive
    to elicit voluntary separations by officers in carefully targeted
    communities. VSP has been used to separate 132 officers from an
    eligible pool of 208. Navy greatly appreciates the additional
    flexibility that Congress enacted in the NDAA for Fiscal Year 2007,
    which will permit Navy to extend the use of VSP to select enlisted
    personnel and apply it to members with between 6 and 20 years of
    service.
        MIL-CIV Conversion
        Conversion of military billets, not focused on inherently military
    work, to civilian billets enhances our ability to align military
    personnel to warfighting functions. This year, we will target
    nonwarfighting functions previously staffed and performed by military
    personnel, for conversion. We will transfer some commissioned U.S.
    vessels to Military Sealift Command (civilian mariners). Our focus will
    be on mil-civ conversions for medical and legal services, aviation
    support and maintenance, training support, and headquarters
    administrative functions.
        Law and Regulation
        DOPMA and the Goldwater/Nichols Act, both conceived and enacted in
    the Cold-war era, make it difficult to efficiently align our personnel
    to current and projected force structure requirements. Navy has become
    a far more joint and senior force, reduced in size, but with increased
    warfighting capability. As Navy end strength stabilizes, the need for
    more senior and experienced officers will continue to increase. Navy is
    currently operating at, or very near, statutory control-grade limits
    across the board and, consequently, is suppressing billet grades
    through the programming and budgeting process in order to comply with
    DOPMA constraints. In fiscal year 2008, Navy is seeking relief from
    current control-grade limits to enable us to properly man our billet
    structure while providing a reasonable amount of flexibility to respond
    to continually emerging external control grade requirements.
        Incentives
        The Assignment Incentive Pay continues to be an effective market-
    based incentive to elicit volunteers for difficult-to-fill jobs in
    critical, but less desirable locations. Navy recoded approximately
    8,800 billets from a nonmonetary incentive (overseas shore duty with
    sea duty credit) to a normal shore tour with a monetary incentive.
        Sea Duty Incentive Pay (SDIP) will soon be implemented as a pilot
    program to incentivize enlisted Sailors in sea-intensive ratings to
    volunteer for longer sea duty. Sailors will either extend their
    assignment at sea, or curtail their assignment ashore, returning to sea
    duty. SDIP is aimed at increasing assignment flexibility to support the
    Navy's move toward a more sea-centric force.
        Retention Shaping Tools
        Selective Reenlistment Bonus (SRB), our primary retention tool,
    allows us to optimize the Navy workforce by targeting personnel with
    precise, in-demand skills and experience to reenlist. Navy's maximum
    SRB payment is currently set at $75,000, allowing sufficient
    flexibility to increase the bonus ceiling as retention needs dictate
    over the next several years. This cap increase has been extremely
    valuable in retaining experienced nuclear-trained personnel and SEALs.
    Stabilizing the Total Force
        In the past year we have seen remarkable developments in the global
    security environment. It is clear that the security challenges of this
    century will be multifaceted and wide-ranging. If we are to respond to
    this rapidly-changing environment, we must have a capability-based
    personnel management system that is proactive, agile and cost-
    efficient. Such a system will allow a stabilized force that can rapidly
    adjust to new requirements. A key to establishing this system is a
    single, centralized analytical construct that is Navy-wide and balances
    warfighting requirements, personnel, and costs.
        In 2006, the Navy's Manpower, Personnel, Training, and Education
    (MPT&E) Domain became the Single Manpower Resource Sponsor. The OPNAV
    N1 organization became the single point of responsibility for oversight
    of resourcing and manning all Navy, Active and Reserve, end strength.
    This consolidation of planning, programming, budgeting and execution
    authority places all Navy billets and positions into a single
    analytical framework. Having centralized authority and accountability
    enables Navy leadership to look across the entire Service to identify
    and prioritize the work to be performed in delivering warfighting
    capability. Our analytical framework links people to work, work to
    platforms, and platforms to capabilities resulting in far better
    ability to fit our people directly to warfighting capability.
        In 2007, as the Single Manpower Resource Sponsor, OPNAV N1 will
    assume a more robust assessment responsibility through close liaison
    with Resource Sponsors, Appropriation Sponsors and the warfighting
    Enterprises through all phases of the Planning, Programming, Budgeting
    and Execution System process. I intend to expand our focus beyond
    military personnel to include the Navy's civilian workforce as well.
        The transition from FILL--a sailor in every billet--to FIT--the
    right person (military, civilian or contractor) in the right position--
    is just the beginning. Navy has developed strategies and action plans
    to enable sustainment of the changes we have made to-date, and carry us
    through to match the rapidly changing demands sure to come.

                    STRATEGIES FOR THE FUTURE NAVY WORKFORCE

        Sometimes we still think of the 21st century as the future. It is
    not. It is today. Sailors, Navy civilians, and contractors who will
    respond to uncertain future missions are entering the workforce and
    Navy today. What we do today--the decisions we make--will dictate our
    situation tomorrow, and determine what we are capable of in the future.
        To inform, guide and ensure these decisions enable us to sustain
    the ready, stable Navy workforce we need in the future, we have defined
    a number of strategies and action plans to transform the Navy Total
    Force. These strategies address: the long term vision of Navy MPT&E;
    leveraging the diversity of our Total Force; executing Spiral One Sea
    Warrior; integrating education and training across Navy; better
    preparing and positioning the Navy to support Joint missions, and
    integrating our Active and Reserve military force.
    Strategy for Our People
        To sustain a stable Total Force, we must transform into a
    capability-driven, competency-based, diverse, Total Force that is
    agile, effective, and cost-efficient.
        In 2006, we developed the MPT&E Strategic Vision. This vision sets
    the course along which Navy's Total Force management will evolve over
    the next 10 years. It describes our environment of uncertainty and
    changing operations, a more competitive marketplace and rising fiscal
    constraints. It defines six strategic goals that, when achieved, will
    enable us to be responsive and effective in the future.

        Our six strategic goals for 2016 are:

             An Effective Total Force. Workforce components--Active
            and Reserve sailors, Federal civil employees, and contractors--
            will be viewed as one, integrated team that supports required
            warfighting capability.
             Capability-driven. Navy workforce requirements will be
            based on current and future joint warfighting needs as dictated
            by the national defense strategy.
             Competency-based. Navy work and workforce will be
            defined, described and managed by the knowledge, skills, and
            abilities that enable performance required for mission
            accomplishment.
             Competitive in the marketplace. We will continuously
            revise and update our policies and practices to deliver
            necessary and comprehensive pay and compensation structures
            such as life-long learning, career choice and improved family
            support.
             Diverse. We will have a culture of inclusion that
            encourages and enables all sailors and civilians to reach their
            full professional and personal potential.
             Agile and cost effective. We will deliver additional
            capability from a smaller, yet increasingly talented, educated,
            and integrated workforce.

        In 2007, we intend to define specific approaches and action plans
    to achieve our six strategic goals. We will develop roadmaps that
    define the specific tasks and activities that must be undertaken to
    ensure we are making decisions that move us forward toward our vision.
    These roadmaps will include precise objectives that enable measurement
    and accountability.
    Diversity Campaign Plan
        Diversity is a strategic imperative for our Navy. Our diversity
    program leverages the different characteristics and attributes of
    individual sailors and civilians. It enhances the contribution of our
    diverse force to mission readiness.
        We defined the Navy's Diversity Campaign Plan. This plan consists
    of three Phases: Phase I-Assessment; Phase II-Decisive Action, and
    Phase III-Sustainment and Accountability. Phases I and II are complete.
    We are now in Phase III.
        The goals of this plan are to: (1) institutionalize a culture that
    values and fully leverages the unique attributes of the Navy's
    workforce, (2) attract and retain the best talent of our Nation, and
    (3) provide opportunity for all to succeed and advance.
        In Phase I, we took a fix--to get a Navy-wide snapshot of where we
    are in diversity, specifically looking at how recruiting, retention,
    and promotion practices have resulted in current demographics. As a
    result, five focus areas were identified for further analysis and
    action: Accountability; Outreach; Mentoring; Training, and
    Communication. Our focus was on operationalizing diversity as a
    frontline issue by involving all Navy leadership in the effort. We
    attempted to understand why we have diversity shortfalls in some
    communities, ratings and occupations, and how we can best improve and
    sustain representation in those areas.
        During Phase II, we performed root cause analysis and implemented
    decisive corrective actions to institute enduring change. We identified
    diverse affinity groups and other organizations that Navy would engage
    or increase engagement with to institute an outreach regimen and build
    a sustained engagement strategy. A mentoring program was conceived that
    is formalized but voluntary for mentors and proteges and incorporates
    one-on-one group and peer-to-peer mentoring. An overarching
    communication strategy was prepared to deliver a coherent and
    consistent message to the force.
        In Phase III, we are committed to sustainment and accountability.
    Our focus is on continuing and enduring actions which are critical to
    our long term success. Navy will communicate a coordinated and
    consistent strategic diversity message. There will be CNO Enterprise/
    Community accountability reviews, which will improve outreach--moving
    from episodic to sustained engagement. We will launch a service-wide
    mentoring program, and ingrain diversity throughout the learning
    continuum, empowering our leadership Navy-wide to reinforce the
    strategic imperative of diversity in today's Navy.
    Spiral One Sea Warrior
        Our new generation of sailors expects to be more involved in making
    their career and life decisions. As a result, we are moving from a
    schedule-based requisition legacy system to sailor choice and
    partnership, a sailor-centered model.
        The Sea Warrior family of career management tools is based on
    entrepreneurial efforts of Revolution in Training, Project SAIL and
    Improving Navy's Workforce, which helped us precisely understand the
    work that we need to do, and how we can best match the sailor to that
    work.
        Like other elements of Sea Power 21, Sea Warrior is a conceptual
    framework to deliver a capability. Our long range vision--an easy to
    use, integrated and responsive family of career management, training,
    and education systems for sailors to invest in and direct their
    careers, education, and professional development--remains unchanged. In
    the near-term, we are focused on access and delivery, performance, and
    policy to support one primary product--interactive detailing.
        In 2006, Navy applied programmatic discipline to place more rigor
    into specific content development. We stood up a program office within
    PEO-EIS and deepened partnerships with key Navy organizations. We also
    unbundled existing products (Navy Knowledge Online, SMART transcripts,
    Navy Credentialing Opportunities Online (COOL)) to field Sea Warrior
    Spiral One--Career Management System (CMS) with Interactive Detailing
    capability.
        In the future, we intend to continue to test, evaluate, and deliver
    proven products to sailors. Sea Warrior will be established as a
    program of record for POM-10. Testing starts this year with a tightly
    defined control group to use the system and provide us valuable
    feedback to improve upon this capability. The ability to apply for
    billets online using CMS-Interactive Detailing (consistent with policy
    and access) will be delivered to our sailors by June 2009. In future
    spirals, we will build on lessons learned and as access and systems
    capability improve, we will move from a policy focus to individual
    sailor and access and capability focus. As each build reaches maturity
    (and passes strict quality acceptance tests for accuracy, ease-of-use,
    and technical robustness), we will open its use to wider audiences.
    Navy Education Strategy
        Developing a Total Force that is ready any time, anywhere starts
    with education. Education provides the foundation for development and
    enhancement of the critical thinking skills necessary to confront
    uncertainty, and adapt and respond quickly and decisively. Education is
    a strategic investment for Navy's Total Force. It provides preparation
    for enduring missions that are well-known, plus yet-to-emerge missions
    we know are certain to come.
        In 2006, the Navy conducted a study that sought to establish a
    requirements and career progression framework and lay the groundwork
    for an education strategy within that framework. The study included
    intensive discussions with Navy leaders, unintended consequence
    analysis of prospective education initiatives, and a literature review
    and exploratory data analysis.
        In 2007, the Navy will conduct a follow-on study that includes
    extensive data gathering, model building, and data analysis. The goal
    is to develop a comprehensive Navy Education Strategy that: supports
    the Navy Total Force, enhances warfighting proficiency; strengthens
    joint, multi-national and interagency operations; addresses enduring,
    emergent and future requirements, and exploits learning strategies and
    best practices.
    Path to Jointness
        The Navy is committed to developing joint leaders--both in the
    officer and senior enlisted communities. We are pursuing a ``Path to
    Jointness'' that will improve how we plan, prepare and assign Navy
    leadership talent to joint positions in a way that maximizes the Navy's
    contribution to joint, interagency, and multi-national coalition
    partners.
        In 2006, we made significant progress on the policy initiatives
    linking career progression and assignment with the Chairman's Vision.
    We defined the professional military education (PME) requirements for
    the ranks of E-1 through 0-8 across the entire Active and Reserve
    military forces. Navy has revised the process to select and assign
    officers who have clearly demonstrated the potential to assume
    positions of strategic and operational leadership of staff
    responsibilities as appropriate to their grade in Navy, Joint,
    interagency and multi-national billets. The Navy now requires
    completion of Intermediate PME, including JMPE Phase I for selection to
    URL 0-5 Command by fiscal year 2009 screen boards (which are actually
    held in fiscal year 2008).
        In 2007, we intend to continue our efforts on the ``Path to
    Jointness'' by expanding our efforts to the Total Force, and monitoring
    our policy and process changes to ensure compliance and effectiveness.
    We will expand our efforts by providing the appropriate PME to the
    entire Active and Reserve Total Force, and ensuring graduates are
    tracked and assigned to billets that exploit their education and
    accelerate their development as joint leaders. Our effectiveness will
    be tracked by the number and percentage of PME graduates assigned to
    career milestone billets. We have set a requirement for 100 percent
    fill of Navy resident student billets at all Joint, Service, and
    foreign war colleges.
    Active-Reserve Force Integration
        Navy continues to make significant strides in achieving a true
    Total Force through ARI. ARI aligns Active and Reserve component units
    to achieve unity of command. It leverages both budgetary and
    administrative efficiencies, and ensures that the full weight of the
    Navy resources and capabilities are under the authority of a single
    commander.
        Strength planners and community managers, both Active and Reserve,
    are being collocated and are implementing the same business rules and
    models to manage our Navy's manpower from a Total Force perspective.
    Active and Reserve regions have been aligned under the five CONUS Navy
    Region Commanders and Naval District Washington, to improve
    communications and provide mutual support, optimizing our resources and
    making them more accessible across the Navy.
        Navy Reserve Centers have been redesignated as Navy Operational
    Support Centers (NOSCs). Their mission is to meet the requirements of
    the fleet and combatant commanders by providing integrated operational
    support to supported Navy and joint commands worldwide.

                                   CONCLUSION

        Your Navy is ready. We are ready now and we will be ready tomorrow.
    We are recruiting and retaining the best and brightest talent our
    Nation has to offer. Our sailors, our civilians, and their families,
    are physically and mentally prepared. We have sized and shaped our
    force based on current and projected warfighting requirements. We are
    building a more flexible personnel management system that can rapidly
    respond to the ever-changing security environment. Our strategies for
    the future are defined and executing.
        The United States Navy has a proud history of accomplishing its
    maritime core missions-forward presence, crisis response, sea control
    and power projection. This past year, our Total Force not only lived up
    to, but surpassed, this standard, accomplishing our traditional
    missions, as well as supporting the nontraditional missions of the long
    war--counterinsurgency, counterterrorism, civil-military operations and
    nation-building. We also provided desperately needed humanitarian
    assistance around the globe.
        The challenge before us is the uncertain world. We do not know
    which of these missions we may be called upon to perform in the future.
    The Nation needs a strong Navy--with unmatched capability, global
    reach, persistence presence, agility and unequaled lethality. Our
    Navy's Total Force must be ready today and in the future to respond
    whenever, wherever we are called upon to do so. That is our heritage,
    that is our tradition and that is exactly what we will do.

        Senator Ben Nelson. Thank you, Admiral.
        General?

         STATEMENT OF LT. GEN. RONALD S. COLEMAN, USMC, DEPUTY
      COMMANDANT FOR MANPOWER AND RESERVE AFFAIRS, UNITED STATES
                              MARINE CORPS

        General Coleman. Good afternoon, sir. I have submitted a
    statement.
        Senator Ben Nelson. It will be included in the record.
        General Coleman. Yes, sir. Thank you, sir.
        Chairman Nelson, Senator Graham, and distinguished members
    of the subcommittee, it is a privilege to appear before you
    today to discuss the Marine Corps policy and program.
        I want to first thank you for all your continued support of
    our marines and their families. The commitment of Congress to
    increasing the warfighting and crisis-response capabilities of
    our Nation's Armed Forces and to improve the quality-of-life
    for marines is central to the strength that your Marine Corps
    enjoys today. I would like to make three points.
        First, in fiscal year 2006, the Marine Corps exceeded its
    mission in both recruiting and retention. In doing so, we
    continue to exceed DOD-quality standards in recruiting. We also
    achieved over 90 percent military occupational speciality match
    in first-term enlistments, and over 94 percent in career force.
        Second, in fiscal year 2007, the Marine Corps is off to a
    strong start in both recruiting and retention. We were
    initially on pace to meet or exceed our fiscal year 2006
    results. As part of the plan to increase our end strength to
    202,000 by fiscal year 2011, we're now planning to increase our
    end strength to 184,000 by the end of fiscal year 2007.
    Consequently, we recently increased both our recruiting and
    retention missions significantly. These new missions will
    present challenges for recruiters, commanders, and career
    retention specialists, but we believe we will meet the
    challenge. Key to our success will be the additional funding
    that we have applied to both our enlisted bonus and Selective
    Reenlistment Bonus Program.
        Third, the increased Marine Corps end strength will enable
    your Marine Corps to better train across the warfighting
    spectrum, respond to other conflicts and crises, and reduce the
    strains on our marines and units. Meeting the end strength
    growth requirements will require us to continue to increase our
    recruiting and retention goals. The Marine Corps will also
    increase the number of recruiters, expand marketing and
    advertising efforts, and increase enlistment and reenlistment
    incentives. We ask for your support in authorizing and funding
    these programs. With these important tools, we will be able to
    continue to attract and retain the best and brightest.
        Thank you. Your Marine Corps remains the Nation's force in
    readiness and will continue to fill its mission of being the
    most ready when the Nation is least ready.
        I look forward to answering your questions.
        [The prepared statement of General Coleman follows:]

             Prepared Statement by Lt. Gen. Ronald S. Coleman, USMC

        Chairman Nelson, Senator Graham, and distinguished members of the
    subcommittee, it is my privilege to appear before you today to provide
    an overview of your Marine Corps personnel.

                                  INTRODUCTION

        We remain a Corps of Marines at war with over 33,700 marines
    deployed to dozens of countries around the globe. The young men and
    women who fill our ranks today recognize the global, protracted, and
    lethal nature of the challenges facing our Nation, and their dedicated
    service and sacrifice rivals that of any generation preceding them.
        Thanks to you, ladies and gentlemen, your marines know that the
    people of the United States and the Government are behind them. The
    continued commitment of Congress to increasing the warfighting and
    crisis response capabilities of our Nation's Armed Forces, and to
    improve the quality-of-life of marines, is central to the strength that
    your Marine Corps enjoys today. The Nation is receiving a superb return
    on its investment in the world's finest expeditionary force.
        This past year, you have seen evidence of this not only in Iraq and
    Afghanistan, but in Lebanon, where we were partners in the largest
    noncombatant evacuation since Vietnam; in the southern Pacific, as part
    of humanitarian assistance and relief efforts in the wake of multiple
    natural disasters; and throughout the world in our theater security
    cooperation engagements. We know the future will remain challenging--
    not only in the current conflicts, but in subsequent campaigns of the
    long war on terror. I am confident that with your continued support,
    your corps will remain the Nation's force in readiness and will
    continue to fulfill its congressionally mandated mission of being the
    most ready when the Nation is least ready.

                          RIGHT-SIZE OUR MARINE CORPS

        To meet the demands of the ``Long War'' and other crises that
    arise, our corps must be sufficiently manned, trained, and equipped.
    Like the Cold War, the ``Long War'' is a continuing struggle that will
    not be measured by the number of near-term deployments or rotations. To
    meet our challenges, we must ensure that our personnel policies,
    organizational construct, and training are able to operate at a
    ``sustained rate of fire.''
    Strain on the Individual
        Marines are resilient warriors and are willing and able to absorb
    increased deployment stress without outward symptoms. However, any
    deployment causes stress as members are away from their families and in
    dangerous environments. Families worry about their loved one's safety
    and spouses have to care for their children alone. As members deploy
    multiple times, these stresses are multiplied. Nevertheless, despite
    the current unparalleled Personnel Tempo, the morale of our marines and
    their families remains high.
        To avoid an adverse toll on our marines and their families, and to
    prevent a decrease in readiness, the Secretary of Defense established a
    1:2 deployment-to-dwell ratio goal for all Active component forces.
    This ratio relates to how long our forces are deployed versus how long
    they are at home--the goal being for every 6 months a marine is
    deployed, they will be back at their home station for 1 year. We need
    to relieve the strain on those superb Americans who have volunteered to
    fight the Nation's battles.
    Strain on the Institution
        The current deployment cycle requires commanders to focus on those
    skill sets required to accomplish the mission in Iraq and Afghanistan.
    This emphasis, along with the added requirement for individual
    augments, training team requirements, and the need to deploy many units
    for missions outside of their normal functions has caused deterioration
    in other skill sets. The result of this strain is limitation in the
    Marine Corps' ability to provide trained forces to project power in
    support of other contingencies. To fulfill our mandate to be ``most
    ready when the Nation is least ready,'' our deployment cycles must not
    only support training for irregular warfare, they must also provide
    sufficient time for recovery, maintenance, and training for other
    contingency missions.
    Reducing the Stress
        The proposed increase to our Active component end strength to
    202,000 marines by fiscal year 2011 will go a long way to reducing the
    strain on the individual marines and the institution. It will enable us
    to build capacity to fight the ``Long War'' and to better train and
    respond to other crises. It will also help us meet the Secretary of
    Defense's goal 1:2 deployment-to-dwell ratio.
        Our first task will be to build 3 new infantry battalions and their
    supporting structure--approximately 4,000 marines. We will then
    systematically build the additional individuals and units on a schedule
    of approximately 5,000 per year. This plan will gradually increase the
    deployment-to-dwell ratio of some of our habitually high operational
    tempo units such as ground reconnaissance, light armored
    reconnaissance, assault amphibian, combat engineer, military police,
    signals intelligence, unmanned aerial vehicle, helicopter, air command
    and control, combat service support and explosive ordnance disposal
    units.
        Increasing end strength to 202,000 will be achieved by through
    increased Active component accessions and increased retention. These
    mission increases will be significant and will require additional
    compensation incentives. We have developed a number of Assignment
    Incentive Pay based initiatives that will be critical to our increased
    retention missions, and we ask for congressional support for these
    programs.
    Reserve Component End Strength
        Our efforts in the ``Long War'' remain a Total Force effort. Recent
    policy changes within the Department of Defense (DOD) will allow us to
    use the Reserve Forces as they were structured to be employed--to
    augment and reinforce our Active component forces. To this end, our
    goal is to obtain a 1:5 deployment-to-dwell ratio within our Reserve
    component. We believe our current authorized Reserve component end
    strength of 39,600 selected Reserve marines is adequate. As with every
    organization within the Marine Corps, we continue to review the make-up
    and structure of the Marine Corps Reserve in order to ensure the right
    capabilities reside within the Marine Forces Reserve units and our
    Individual Mobilization Augmentee program across the force.
    Funding
        The Marine Corps greatly appreciates the increased end strength to
    180,000 in the National Defense Authorization Act for Fiscal Year 2007.
    Our program of record requires that we internally fund any end strength
    in excess of 175,000 marines. We are resourcing these additional costs
    through supplemental funding.
    Compensation
        The vast majority of our personnel budget is spent on entitlements,
    including compensation. Compensation is a double-edged sword in that it
    is a principal factor for marines both when they decide to reenlist and
    when they decide not to reenlist. Private sector competition will
    always seek to capitalize on the military training and education
    provided to our marines--marines are a highly desirable labor resource
    for private sector organizations. The targeted pay raise effective 1
    April 2007 has allowed the Department to accomplish its efforts in
    bringing all pay grades up to the 70th percentile of comparably
    educated civilian pay levels. We look forward to the product of the
    thorough analysis being conducted by Quadrennial Review of Military
    Compensation review of the Defense Advisory Committee on Military
    Compensation recommendations.
        The continued support of Congress for appropriate increases in
    basic pay and a sound, comprehensive compensation and entitlements
    structure greatly assists efforts to recruit and retain the quality
    Americans you expect in your corps.

                                   RECRUITING

    Active Component
        In fiscal year 2006, the Marine Corps achieved 100.1 percent of the
    enlisted shipping (accession) objective. Over 95 percent of those
    shipped to recruit training were Tier 1 high school diploma graduates
    and 68 percent were in the I-IIIA upper mental group testing
    categories. In short, we accomplished our recruiting mission and
    exceeded DOD quality standards. To meet the Marine Corps' proposed end
    strength increase, annual total force accessions missions must steadily
    grow from 38,217 in fiscal year 2006 to 45,000 in fiscal year 2010.
    Fiscal year 2007 total force accessions mission is 39,927. As of March
    1, 2007, we have shipped (accessed) 13,568 recruits to basic training
    which represents 102 percent of our mission fiscal year to date.
    Although challenging, we anticipate meeting our annual recruiting
    mission. With regard to our self-imposed contracting mission, we are
    ahead of our current plan for the year and expect to meet our
    objectives. Our Officer Selection Teams were also successful accessing
    1,494 second lieutenants in fiscal year 2006, 101 percent of mission,
    and we are on course to make our officer accession mission in fiscal
    year 2007.
    Reserve Component
        For the Reserve component, the Marine Corps achieved its fiscal
    year 2006 Reserve enlisted recruiting goals with the accession of 5,880
    non-prior service marines and 3,165 prior service marines. As of 1
    March 2007, we have accessed 1,874 non-prior service and 1,746 prior
    service marines, which reflects 35 percent and 50 percent of our annual
    mission, respectively. Again, we expect to meet our Reserve recruiting
    goals this year. Officer recruiting and retention for our Selected
    Marine Corps Reserve units is traditionally our greatest challenge, and
    remains the same this year. To help address this issue, we have
    initiated a Reserve officer commissioning program exclusively to
    address the company grade officer shortfall. Under this program,
    individuals will attend Officer Candidates School, The Basic School, a
    Military Occupational Specialty school, and return to a Reserve unit to
    serve. When coupled with the continued selected Reserve officer
    affiliation bonus provided in the National Defense Authorization Act
    for Fiscal Year 2007, we believe we will have established a method to
    retain officers leaving active duty and attract qualified officer
    applicants into the Reserve ranks.
    Accomplishing the Mission
        To assist in meeting our growing recruiting mission, the Marine
    Corps plans to increase the number of recruiters, retain experienced
    recruiters, increase enlistment incentives, and expand marketing and
    advertising efforts. The recruiting environment continues to be highly
    challenging. Private sector opportunities, low unemployment, declining
    propensity for military service, the global war on terror, and the
    higher costs in advertising require innovation in marketing the Marine
    Corps. We strive to emphasize intangible benefits by projecting the
    Marine Corps message of ``Tough, Smart, Elite Warrior,'' and the
    ``transformation'' that a young man or woman experiences in becoming a
    marine. The Corps continues to explore the best means to communicate
    and appeal to the most qualified young men and women of the millennial
    generation. We endeavor to educate the parents of potential applicants.
    Parents continue to have the greatest influence on young men and women
    in their decision to serve their country, and it is important that we
    inform them of the benefits of serving in the Marine Corps.
        Our message is reinforced through marketing and advertising
    programs--paid media, leads for recruiters, and effective recruiter
    support materials. Paid advertising remains the most effective means to
    communicate our message and, as a result, is the focus of our marketing
    efforts. As advertising costs increase, it is imperative that our
    advertising budgets remain competitive to ensure that our recruiting
    message reaches the right audience. Marine Corps recruiting success in
    the past is a direct reflection of a quality recruiting force and an
    effective and efficient marketing and advertising program. We would
    like to thank Congress for their continued support of the ``No Child
    Left Behind Act'' which provides recruiters access to high schools and
    student directory lists critical to recruiting quality applicants.
        Finally, a very important factor in our success lies in ensuring
    clear and direct responsibility and oversight. The Commanding Generals
    of our two Marine Corps Recruit Training Depots also serve as the
    Commanding Generals of our Eastern and Western Recruiting Regions.
    Having the same individual responsible for quality recruiting and
    entry-level basic training is key to recruiting and making marines.
    Consistent with this, our recruiters' commitment to recruiting a
    quality force is reinforced by the fact that they are held accountable
    for their recruits' performance as they earn the title marine and
    complete ``boot camp.''

                                   RETENTION

        Retention remains an important pillar of building and sustaining
    your Marine Corps. Our manpower system must match skills to sustain the
    operating forces. The Marine Corps endeavors to maintain stable,
    predictable retention patterns. However, civilian opportunities abound
    for marines as employers actively seek our young Marine leaders for
    private sector employment. Leadership opportunities, our core values,
    and esprit de corps are the reasons dedicated young men and women
    reenlist after their initial commitments to defend our Nation.
    Enlisted Retention
        The Marine Corps is a young service by design and retaining the
    highest quality marines to lead our force remains of paramount
    importance. I am pleased to report that in fiscal year 2006, the Marine
    Corps achieved 101.9 percent of its first-term retention goal and an
    impressive 115.8 percent for the Career Force. Both goals were
    accomplished in June 2006, which was 3 months before the end of the
    fiscal year.
        The mid-year course correction to achieve a 184,000 end strength by
    the end of fiscal year 2007 will be challenging. On 4 March 2007, the
    FTAP retention goal increased from 6,096 to 8,298 causing the FTAP rate
    to readjust from 91.9 percent to 67.5 percent. The Marine Corps has
    historically reenlisted approximately 25 percent of its first-term
    force and the new target will require 33 percent this fiscal year. The
    STAP retention goal also increased from 6,461 to 7,800 causing the STAP
    rate to readjust from 57.2 percent to 47.4 percent. Our continuing
    retention success will be largely attributed to two important enduring
    themes: Marines want to stay marines because of the superb leadership
    in our officer and staff noncommissioned officer ranks, and marines
    desire to remain part of a `band of brothers.'
        The Marine Corps makes wise use of Selective Reenlistment Bonus
    (SRB) funding provided by Congress. Your Marine Corps' baseline SRB
    budget last year was $53 million and the Marine Corps spent an
    additional $32 million in supplemental funding to achieve its retention
    goals. This fiscal year we have $55 million for SRB in the baseline.
    However, because of our increased retention goals, we will need
    significant additional supplemental funding; we are thankful for your
    support for this funding. To support our fiscal year 2007 growing end
    strength, we are supplementing the SRB Program by offering $10,000
    Assignment Incentive Pay for fiscal year 2007 reenlistments. For fiscal
    year 2008, the President's budget provides the Marine Corps a baseline
    SRB funding of $214 million; we will again need additional supplemental
    funding for our end strength retention incentives.
        As we continue the ``Long War'' and grow the Marine Corps to an end
    strength of 202,000, the challenge to keep the most qualified marines
    must be met with increased SRB funding. Your continued congressional
    SRB support with added supplemental funding will ensure the Marine
    Corps has the necessary combat trained marines for the ``Long War'' and
    the other contingencies that may arise in support of our great Nation.
    Officer Retention
        I am happy to report that the Marine Corps continues to achieve our
    goals for officer retention. We are retaining experienced and high
    quality officers. Our aggregate officer retention rate was 91.0 percent
    for fiscal year 2006, which is above our historical average. Current
    officer retention forecasts indicate healthy continuation rates for the
    officer force as a whole.
    Reserve Retention
        Concerning our Reserve Force, we satisfied our manpower
    requirements by retaining 80 percent in fiscal year 2006; the fifth
    consecutive year above our pre-September 11 historic norm of 70.7
    percent. For the current year, Reserve officer retention has thus far
    remained above historical norms. Enlisted Reserve retention is
    currently lower than has been seen in the last 2 years, and is being
    monitored very closely. It is important to note that higher planned
    retention in the Active component will reduce the number of personnel
    transitioning into the Selected Marine Corps Reserve. To address the
    potential impact of our increased retention and increased Active
    component end strength, the Marine Corps Reserve is aggressively
    pursing options to increase retention within the Reserve component, to
    include increasing the number and dollar amount of reenlistment
    incentives with a focus on units identified for future deployment in
    our Long War Force Generation Model.

                              MARINE CORPS RESERVE

        This year marks the sixth year that our Reserve component has
    augmented and reinforced our Active component in support of the global
    war on terror. Thanks to strong congressional support, the Marine Corps
    has staffed, trained, and equipped its Reserve to respond to crises
    around the world. Our Reserve component possesses capabilities to fight
    across the full spectrum of conflicts to support our Marine Air Ground
    Task Forces. As of 28 February 2007, 41,560 Reserve marines have been
    mobilized since September 11. The Marine Corps Reserve continues to
    recruit and retain quality men and women willing to serve in our
    military and help our Nation fight the global war on terror. These men
    and women do so while maintaining their commitments to their families,
    their communities, and their civilian careers.
        More than 4,700 Reserve marines are currently on active duty with
    nearly 3,500 serving in Reserve ground, aviation, and combat support
    units, while over 1,200 serve as individual augments in both Marine
    Corps and joint commands. Seventy-four percent of all mobilized
    reservists have deployed to the Central Command area of operations. To
    support ongoing mission requirements for Operation Iraqi Freedom, the
    Marine Corps Reserve provides approximately 10 percent of our Total
    Force commitment.
        We are currently working closely with the Department of the Navy
    and OSD on the development of the new activation policy. This policy,
    in conjunction with our Long War Force Generation Model will greatly
    improve our ability to provide our Reserve marines with advance
    notification of activation.
        As previously mentioned, recruiting and retention remain a
    significant interest as the Marine Corps Reserve continues its support
    for the global war on terrorism. The funding increases and flexibility
    inherent in the Reserve incentives you provided in the National Defense
    Authorization Act for Fiscal Year 2007 are invaluable assets to assist
    in our continued recruitment and retention mission. The increased bonus
    amounts not only generate greater interest in Reserve affiliation, but
    also provide financial assistance during the critical period of
    transition from active duty to Reserve service.
        Healthcare remains an essential part of mobilization readiness for
    our Reserve component. The new streamlined healthcare benefit that
    Congress authorized this fiscal year will help ensure that our Selected
    Marine Corps Reserve members, and their families, have access to
    affordable healthcare as they do their part to prosecute the global war
    on terrorism. Increased access and flexibility to healthcare for these
    families assists in alleviating one of the most burdensome challenges
    facing families of deploying Reserve marines.
        The long-term success and sustainability of our Reserve Forces is
    directly related to our ability to prepare and employ our forces in
    ways that best manage limited assets while meeting the expectations and
    needs of individual marines and their families. In an effort to ensure
    a well-balanced total force and address any potential challenges that
    may arise, we are constantly monitoring current processes and policies,
    as well as implementing adjustments to the structure and support of our
    Reserve Forces.

                                CIVILIAN MARINES

        Civilian marines continue to provide an invaluable service to the
    Corps as an integral component of our Total Force. Working in true
    partnership with marines, civilian marines will continue to play in
    important role in supporting the mission of the Marine Corps and the
    global war on terror. Our vision for the future not only defines what
    the Marine Corps will offer its civilian marines, but what the Corps
    expects from them.
    Marine Corps Civilian Workforce Campaign Plan
        Marines, more than ever before, recognize the importance of our
    civilian teammates and the invaluable service they provide to our Corps
    as an integral component of the Total Force. To that end we continue to
    mature and execute our Civilian Workforce Campaign Plan, a strategic
    road map to achieve a civilian workforce capable of meeting the
    challenges of the future. We are committed to building leadership
    skills at all levels, providing interesting and challenging training
    and career opportunities, and improving the quality of work life for
    all appropriated and non-appropriated civilian marines.
    National Security Personnel System
        The Marine Corps is committed to the successful implementation of
    the National Security Personnel System (NSPS). The NSPS will enable the
    Marine Corps to better support the warfighter by providing a civilian
    workforce that is flexible, accountable, and better aligned to the
    Marine Corps mission. The Marine Corps is actively participating with
    DOD in the development and implementation of this new personnel system
    and is cooperating with the sister Services to ensure civilian marines
    and other civilian employees are afforded the training opportunities
    and support necessary for a successful transition. The Marine Corps is
    dedicated to providing all available resources to the NSPS
    implementation effort while maintaining high operational performance.
    Marine Corps implementation of NSPS began with Headquarters, Marine
    Corps (HQMC) converting approximately 900 non-bargaining civilian
    employees on 21 January 2007.
    Military-to-civilian conversions
        Military-to-civilian conversions continue to provide a valuable
    source to send additional marines back to the operating force in
    support of our warfighting initiatives and help reduce stress. We will
    continue to pursue sensible conversions and remove marines from billets
    that could be capably filled by civilian marines.

                             INFORMATION TECHNOLOGY

        We continue to transform our manpower processes by exploiting the
    unique benefits of the Marine Corps Total Force System (MCTFS), via our
    fully integrated personnel, pay, and manpower system. The MCTFS
    seamlessly serves our Active, Reserve, and retired members, both
    officer and enlisted; provides total visibility of the mobilization and
    demobilization process of our marines; and ensures proper and timely
    payments are made throughout the process. This fiscal year, MCTFS
    continues to obtain a pay accuracy rate of 99.9 percent for our Active
    component and 99.7 percent for our Reserve component.
        MCTFS is the backbone that has allowed the Marine Corps to develop
    the Total Force Administration System (TFAS), a virtual administration
    center that moves Marine Corps pay and personnel administration to a
    predominately self-service, virtually paperless, Web based environment.
    This capability allows global access to pay, personnel tools, and
    personal information viewed electronically in a secure environment.
    During 2006, individual marines and their leaders leveraged MCTFS'
    capabilities, using TFAS via Marine Online, a Web based application, to
    automatically process more than 1.4 million transactions, including
    over 84 percent of our annual leave events.
        MCTFS' integrated environment also directly feeds our Operational
    Data Store Enterprise and Total Force Data Warehouse, a shared data
    environment of current and historical individual and aggregate data.
    This unique capability allows analysts to quickly respond to a myriad
    of data analysis and requests. Our Manpower Performance Indicators
    present this data in a tailorable, easy to read, graphical format to
    operational commanders and headquarters planners, via the World Wide
    Web. We continue to program technology investments that build on these
    integrated capabilities, ultimately providing greater effectiveness and
    efficiencies with a goal of further decreasing Marine administrative
    support and redirecting this structure to warfighting capabilities.
    Proper management of our manpower requirements and processes requires
    continued investment in modern technologies; we remain committed to
    these prudent investments.

                   TAKING CARE OF OUR OWN--THE ``NEW NORMAL''

        Upon successful recruitment and retention of high quality marines,
    the Marine Corps seeks opportunities to enhance the experience of being
    a U.S. marine. It is widely recognized that lasting intangible benefits
    are gained through duty and commitment. These positive experiences are
    further intensified by the assurance that the Marine Corps ``takes care
    of our own.''
        Marines and their families have long been accustomed to rapid and
    frequent deployments. Over time, the Marine Corps has developed a
    flexible and evolutionary infrastructure to support our way of life and
    the ``normal'' operations of our expeditionary force. Marines and their
    families have been well served, but we must continuously assess our
    support programs and capabilities to ensure sufficiency and relevance.
    Assessment & Improvement
        Going forward, it is becoming more evident that what was once
    characterized as ``surge'' support requirements of Operation Iraqi
    Freedom and Operation Enduring Freedom should now more appropriately be
    viewed as ``normal'' operations of the Marine Corps--albeit a ``new
    normal.'' With this view, in January 2007, we conducted a Wounded
    Marine and Family Support Forum for the purpose of assessing the
    quality and consistency of our support programs. Over 100 major command
    representatives convened in Alexandria, Virginia, to examine seven
    program areas for wartime applicability and consistency of support
    across the Marine Corps. Areas reviewed included: wounded warrior
    support, post-traumatic stress disorder, and traumatic brain injury,
    casualty notification and support, marine and family pre-deployment
    training, Marine and Family Services Programs, special needs families,
    and the Key Volunteer Program. As may be expected, we found some
    program inconsistencies that will require greater analysis, further
    program development, and in some cases increased resources.
    Recommendations subsequently approved for action will take advantage of
    ad hoc best practices and be directed for implementation Marine Corps-
    wide. Execution will remain the responsibility of our Commanders, but
    they will be supported with good guidance along with standard templates
    and tools that will ensure we continue the proud Marine Corps tradition
    of ``taking care of our own.''
        In addition to the efforts described above, the quality-of-life in
    the Marine Corps survey and study will be administered later this year.
    This same survey was previously conducted in 1992, 1998, and 2002. The
    purpose of the survey is to gain insights from marines and their
    families on their perceptions of quality-of-life. Eleven ``life
    domains'' covering all aspects of quality-of-life; including pay and
    compensation, military life, family life, housing, heath care, etc.
    will be surveyed for levels of satisfaction. We will use the results of
    the survey to support Marine Corps desired outcomes for recruitment,
    retention, and readiness.
    Importance and Role of Marine Leaders
        Marine leaders, at all levels, have the greatest opportunity to
    directly engage marines and their families through active listening and
    appropriate referral to an array of support agencies and services. In
    this capacity, Marine leaders set an environment where it is ``okay to
    ask for help.'' As described previously, we must provide good guidance,
    tools, and templates our leaders can use for immediate and lasting care
    of marines and families. Our ``Leaders Guide for Managing Marines in
    Distress'' is an example of an innovative tool for leaders engaged in
    the ``new normal'' operation. The guide, which is updated regularly, is
    an online and pocket version resource for Marine leaders in the
    effective management of stress-related problems (i.e. suicide,
    substance abuse, financial problems, and domestic abuse), including
    combat/operational stress.
        Marines and marine families have demonstrated great strength and
    resiliency. In fact, for the past 5 years, our rates of domestic abuse
    and child maltreatment; incidents of drug use, divorce, and suicide
    have remained comparatively low. We remain vigilant in monitoring
    trends and will continue to provide appropriate support mechanisms to
    help marines and their families prevent and, when necessary, overcome
    problems that may arise.
    Casualty Assistance
        The Marine Corps ethos of ``taking care of our own'' is never more
    relevant than when we care for our fallen Marines and their survivors.
    Whether the death is combat-related or comes after a long and well-
    lived life, each marine death is a tragic or significant loss to the
    survivors, the corps, and our Nation. We steadfastly endeavor to honor
    their sacrifices with sincerity and continued remembrance. Our Casualty
    Assistance Calls Officers are trained to treat next of kin and other
    family members as they would their own family. Providing casualty
    assistance always begins with the basic tenet that there is no standard
    casualty call; each case is distinct and families grieve in their own
    way and time. Assistance to families is carefully measured to
    facilitate their transition through the stages of grief and the
    completion of the casualty assistance process.
        In the past few years, we have been careful to incorporate best
    practices or adapt our casualty assistance process to better meet the
    needs of our surviving families. In fact, over 150 key personnel
    involved in the Marine Corps casualty process from commands around the
    Marine Corps met in December 2006 to receive professional development
    and discuss casualty assistance issues. We have also instituted a long-
    term case management system for surviving families. Finally, as part of
    the Wounded Marine and Family Support Forum, we also identified some
    additional CACO training requirements that we will soon resolve.
        We will continue to lean forward and aggressively assess our
    quality-of-life and support services. As necessary, our programs will
    evolve to an appropriate wartime footing.
    Marine for Life--Injured Support.
        The Marine For Life Injured Support program continues to assist
    seriously and very seriously injured marines, sailors who served with
    the marines, and their families pending the upcoming implementation of
    the Wounded Warrior Regiment, whose mission will be to track and assist
    wounded marines and sailors to add additional discipline and continuity
    to taking care of the injured. The Marine for Life program provides
    support from the time of injury through transition from military
    service, or re-integration to duty. Marine For Life provides support
    tailored to an individual's needs, including pre- and post-service
    separation case tracking, assistance with the physical evaluation
    boards' process, and an interactive Web site that acts as a
    clearinghouse for all disability and benefit information. The program
    also provides employment assistance through a pre-existing Marine For
    Life network, which establishes local coordination with veterans,
    public, private, and charitable organizations that provide support to
    our injured warriors. Marine For Life integrated Marine Corps and
    Department of Veterans Affairs' (VA) efforts to seamlessly transition
    handling of Marine cases into the VA by assigning a Marine field grade
    officer to the VA Headquarters' Seamless Transition Office. This
    integrates marines into the VA system and provides service oversight of
    Veterans Health Administration care and Veterans Benefits
    Administration benefits delivery. The Marine For Life program provides
    the direct point of contact for problem resolution for marines within
    the VA system. The scope of services and capabilities that the Marine
    For Life program currently delivers is expected to continue and expand
    in a more robust manner when the Wounded Warrior Regiment stands up.

                                   CONCLUSION

        As we continue to fight the ``Long War,'' our Services will be
    required to meet many commitments, both at home and abroad. We must
    remember that marines, sailors, airmen, and soldiers are the heart of
    our Services--they are our most precious assets--and we must continue
    to attract and retain the best and brightest into our ranks. Personnel
    costs are a major portion of the DOD and Service budgets, and our
    challenge is to effectively and properly balance personnel, readiness,
    and modernization costs to provide mission capable forces.
        Marines are proud of what they do! They are proud of the ``Eagle,
    Globe, and Anchor'' and what it represents to our country. It is our
    job to provide for them the leadership, resources, quality-of-life, and
    moral guidance to carry our proud Corps forward. With your support, a
    vibrant Marine Corps will continue to meet our Nation's call as we have
    for the past 231 years!
        Thank you for the opportunity to present this testimony.

        Senator Ben Nelson. Thank you, General Coleman.
        General Brady?

      STATEMENT OF LT. GEN. ROGER A. BRADY, USAF, DEPUTY CHIEF OF
         STAFF, MANPOWER AND PERSONNEL, UNITED STATES AIR FORCE

        General Brady. Mr. Chairman, thank you for the opportunity
    to be here today to talk with you about your Air Force.
        Let me begin by thanking you and the committee for the
    tremendous support you have provided for our airmen over many
    years. The Air Force has been compelled to make difficult
    decisions to optimize the dollars available in our budget. Our
    need to recapitalize an aging fleet, coupled with a continued
    high operations tempo, led to a lesser-of-evils decision to
    manage the risk of significantly reducing our end strength.
    While we're not totally comfortable with this drawdown, we
    cannot compromise on recapitalization.
        Our modernization effort remains critical to providing
    combatant commanders with the warfighting capabilities required
    to prevail in the operating domains of air, space, and
    cyberspace.
        The Air Force has been very successful in meeting the ever-
    increasing demands of the global war on terror while also
    transforming into a more agile and capable force. This success
    can be attributed, in large measure, to our Air Force
    expeditionary force rotation construct that operates on a 20-
    month life cycle. Despite a very high operations tempo, through
    the Air Expeditionary Force (AEF) construct we have met all
    combatant commander requirements, maximized quality-of-life by
    introducing predictability, integrated Air Reserve component
    forces to meet requirements, and avoided the use of stop loss.
        As the U.S. Army and U.S. Marine Corps plan for significant
    increases to bolster combat capability, we should be aware that
    there will be a commensurate requirement for an increase in Air
    Force manpower to ensure the effectiveness of the
    interdependent joint team.
        Our air mobility units are intrinsically tied to supporting
    ground forces with the mobility required to deploy and be
    supplied anywhere in the world. Our weather teams, tactical air
    controllers, and other forces are embedded with, or closely
    tied to, ground forces. Your Air Force provides the full range
    of air assets as part of the interdependent joint fight,
    including special forces and intelligence, surveillance, and
    reconnaissance assets.
        Critically important since inception of the global war on
    terrorism has been care of our wounded in action, seriously
    injured, and ill airmen and their families. Palace HART, which
    stands for Helping Airmen Recover Together, is our Air Force
    program for taking care of wounded warriors. Immediately upon
    learning of injury to an airman, a family liaison officer from
    the airman's unit is assigned to the airman's family. This
    airman maintains close contact with the family and helps them
    with whatever they need, and serves as a personal contact to
    ensure the family and the airman can access all the support
    they need. This individual is the wingman who remains with the
    airman and the family from initial notification to recovery.
    Palace HART follows airmen and their families for up to 5 years
    beyond separation from the service, to assist with extended
    transition assistance, employment applications, civilian job
    searches, financial planning and assistance, relocation, and
    integration back into the civilian community.
        Today's airmen are performing at the high standards that
    have been our hallmark for as long as there have been American
    airmen. Our airmen are fully prepared and engaged today, and we
    must continue to invest in the tools they need to ensure
    tomorrow's air space and cyberspace dominance. Your Air Force
    has taken prudent actions to ensure we remain the most
    respected air and space force in the world.
        We appreciate your unfailing support for the men and women
    of our Air Force, and I look forward to your questions.
        [The prepared statement of General Brady follows:]

              Prepared Statement by Lt. Gen. Roger A. Brady, USAF

                                  INTRODUCTION

        Mr. Chairman and distinguished committee members, thank you for the
    opportunity to be here today. Our airmen have been continuously
    deployed and globally engaged in combat missions for more than 16
    straight years--since the first F-15 touched down in Saudi Arabia in
    August 1990. Today, airmen are fully engaged in the interdependent
    joint fight and stand prepared for rapid response and conflict across
    the globe.
        Our priorities are clear: winning the global war on terror and
    preparing for the next war; developing and caring for our airmen to
    maintain our competitive advantage; and modernizing and recapitalizing
    our aircraft and equipment to meet 21st century challenges. We have
    been involved in a critical recapitalization and modernization effort
    for our aging air and space force. Budgetary pressures forced difficult
    choices to ensure that the Air Force would maintain the right balance
    across our personnel, infrastructure, readiness and investment
    portfolios.
        The Air Force undertook significant personnel reductions to
    generate funds to reprogram toward systems recapitalization and
    modernization, congruent with our three key mission priorities. While
    this has been difficult, it has also provided the impetus for a hard
    look at our business processes and organizational structure. At the
    same time, we have placed equal emphasis on improving the education,
    training, and care of our airmen.

                                 FORCE SHAPING

        When the Air Force began to develop a long-term force structure
    plan, we started with divestment of legacy aircraft. While we have
    achieved some success, significant investment gaps remain. Moreover,
    the costs of personnel continue to rise. Personnel costs have increased
    significantly in the past decade. In early 2006, budget guidance
    directed additional end strength reductions over the FYDP. We
    approached force shaping with two priorities. First, the reduction will
    result in a balanced force. We will increase manning in stressed career
    fields and expand opportunities for career development and training.
    Second, we will optimize voluntary actions before implementing
    involuntary reduction programs. Our goal is a lean, more capable, more
    lethal Air Force, organized, trained, and equipped for our global,
    expeditionary mission.
        We tailored our personnel mix to the new security environment by
    using a variety of force shaping tools across the personnel inventory.
    We authorized implementation of annual Force Shaping Boards (FSBs) for
    officers with less than 5 years of service. The fiscal year 2006 FSB
    identified officers in overage career fields for separation while
    balancing career fields and officer commissioned year groups. Prior to
    the board, eligible officers were offered voluntary options to
    transition to other forms of service in and out of the Air Force. The
    Air Force also waived most Active Duty Service Commitments (ADSC) to
    allow officers to separate early. In addition, the Air Force is
    offering Voluntary Separation Pay to officers in overage career fields
    who have 6 to 12 years of service. The expanded authority granted in
    the National Defense Authorization Act for Fiscal Year 2007 gives us
    additional flexibility which we appreciate. We also convened a
    Selective Early Retirement Board to identify retirement-eligible
    officers for early retirement. Again, our goal was to shape the force
    by using a variety of tools across the officer force rather than have
    only one segment bear the brunt of reduction activity.
        To achieve the required reductions of enlisted airmen, the Air
    Force instituted a date of separation rollback for personnel with
    limitations on their assignment or enlistment eligibility. We also
    offered a limited number of ADSC waivers for eligible members in
    overage career fields. These initiatives to shape the enlisted force
    join the tools already in place: Career Job Reservations, reduction in
    accessions, and the Noncommissioned Officer Retraining Program.
        These reductions are difficult but necessary to ensure the Air
    Force maintains the right size and mix of forces to meet the fiscal and
    global challenges of today and tomorrow.
        Our Airman & Family Readiness Flights stand ready to assist our
    airmen and their families with the transition back to the civilian
    community. Preparation counseling provides information and referral for
    benefits, services, and resources. Assistance includes individual
    transition plans, Federal and private employment resources and
    recruiting events, resume preparation, and electronic job searches. Our
    partnership with the Departments of Labor and Veterans Affairs also
    provide for seamless assistance for VA benefits claims, disability
    assistance and state employment assistance.

                          PERSONNEL SERVICES DELIVERY

        To achieve the Secretary of Defense's objective to shift resources
    ``from bureaucracy to battlefield,'' we are overhauling Air Force
    personnel services. Our Total Force (Active Duty, Air Force Reserve,
    Air National Guard, and Civilian) Personnel Services Delivery
    initiative dramatically modernizes the processes, organizations and
    technologies through which the Air Force supports our airmen and their
    commanders.
        Our goal is to deliver higher-quality personnel services with
    greater access, speed, accuracy, reliability, and efficiency. The Air
    Force plans to program the resulting manpower savings to other
    compelling needs over the next 6 years. This initiative enhances our
    ability to acquire, train, educate, deliver, employ, and empower airmen
    with the needed skills, knowledge, and experience to accomplish Air
    Force missions.

                       NATIONAL SECURITY PERSONNEL SYSTEM

        Our civilian workforce is undergoing a significant transformation
    with implementation of the DOD National Security Personnel System
    (NSPS). NSPS is a simplified, more flexible civilian personnel
    management system that improves the way we hire, assign, compensate,
    and reward our civilian employees. This modern management system
    enhances the Air Force's responsiveness to the national security
    environment, preserves employee protections and benefits, and maintains
    the core values of the civil service.
        NSPS design and development has been a broad-based, participative
    process that included employees, supervisors and managers, unions,
    employee advocacy groups and various public interest groups. As of 18
    March 2007, the Air Force has implemented the human resource and
    performance management provisions for 38,918 eligible non-bargaining
    unit employees.
        NSPS is the most comprehensive new Federal personnel management
    system in more than 50 years, and it's a key component in the DOD's
    achievement of a performance-based, results-oriented Total Force.

                                   RECRUITING

        As we prepare for an uncertain future, we are transforming the
    force to ensure we have the right sized and shaped force to meet
    emerging global threats with joint and battle trained airmen. We are
    becoming a smaller force, with a critical need for specific skills. We
    recruit, train and educate our airmen for the complex, multinational,
    and interagency operations of today, and with an eye on tomorrow.
        Our recruiting force has met our recruiting mission through great
    persistence and dedication. From 2001 through 2006, we had a recruiting
    mission of 158,533 and accessed 160,603 for 101 percent of mission
    accomplishment. For 2007, the active duty mission requirement is 27,800
    and 6,486 new Airman have accessed up to this point with 12,122 waiting
    to enter Basic Military Training (BMT). We're on track to meet our
    goals. To date for fiscal year 2007, we've accessed 100 percent of our
    active duty goal, and accessed 101 percent and 104 percent of our
    Reserve and Guard accession goals, respectively.
        Our Recruiting Service continues to find the right person, for the
    right job, at the right time and this is ever evident in our most
    critical warfighter skills. Recruiting Service has filled every
    requirement for Combat Controller; Pararescue; Tactical Air Control
    Party; Survival, Evasion, Resistance, and Escape; and Linguist since
    2001. This has been accomplished through hard work and the significant
    assistance of Congress. These individuals are offered an Initial
    Enlistment Bonus (IEB) ranging from $3,000 to $12,000, depending on the
    job and length of enlistment.
        The majority of our officer programs have met with mission success,
    but medical recruiting and retention remain a challenge. We are
    exploring options such as accession bonuses and enhanced college loan
    repayment programs, to better attract healthcare professionals.

                                   RETENTION

        In fiscal year 2007, we continued to manage and shape the force
    across and within skill sets to meet Air Force needs. Maintaining
    retention at acceptable levels through targeted retention programs such
    as Critical Skills Retention Bonus, Selective Re-enlistment Bonus, IEB,
    and Special and Incentive pays continues to be critical to this effort.
    Force shaping ensured active duty end strength met our long-term
    requirements. This effort is successful in no small measure because of
    your budgetary support.
        Active duty Air Force and ANG met their overall officer and
    enlisted retention goals for fiscal year 2006. The Air Force Reserve
    met its officer retention goal but fell slightly short of its enlisted
    retention goal by 0.8 percent, attaining 99.2 percent of its goal. Even
    with these successes, some enlisted specialties in the active Air Force
    such as Air Traffic Control, Linguist, and Survival Evasion Resistance
    and Escape, for example did not achieve their overall retention goal.
    We will continue to offer these specialties a myriad of bonuses in
    addition to enhanced promotion opportunity.
        Our most critical warfighting skills require a special retention
    focus to maintain combat capability due to critical manning and
    increased operations tempo demands placed on career fields including
    Pararescue, Combat Control, and Explosive Ordnance Disposal. Your
    budgetary support for these retention programs is critical to
    effectively manage the force and retain needed warfighting capability.
    Critical Skills Retention Bonus programs are judiciously and
    effectively targeted to provide the most return-on-investment in both
    dollars and capability.
        Our warfighting airmen are committed to serving, including those
    experiencing high deployment rates. Combatant commander requirements
    and the global war on terrorism place high demands on pilots,
    intelligence, maintenance, civil engineers, and communication officers
    as well as enlisted airmen in aerospace maintenance, supply,
    transportation, munitions and weapons, fire protection, services, and
    security forces. Despite an increased operations tempo and deployment
    rate, retention statistics for these career fields mirror the Air Force
    average. A key element for our overall success in retention is our
    ability to continue to offer bonuses and incentives where we have
    traditionally experienced shortfalls.

                               FORCE DEVELOPMENT

        Spanning 6 decades of Air Force history, particularly over the past
    16 years, our airmen have proven themselves as the global first
    responders in times of crisis--taking action anytime, anywhere. The
    foundation for this well-deserved reputation is the quality and
    frequency of the training and education we provide. Our Air Force
    training initiatives continue to evolve, improving our ability to
    develop and retain the world's best air, space, and cyberspace
    warriors--expeditionary, knowledge-enabled, ethical, and prepared for
    the interdependent fight.
        As part of our Air Force Transformation, we changed Air Force BMT
    curriculum to stress an expeditionary mindset in all phases of
    training, providing airmen with more expeditionary capability from day
    one. These changes are the most significant in BMT history. The Air
    Force basic training experience now mirrors the AEF cycle with
    predeployment, deployment, and reconstitution phases. We emphasize
    basic war skills and practical application throughout BMT. Finally, we
    have added ``Airman's Time,'' mentoring sessions in which our veteran
    instructors share their real world experiences, relate daily training
    events to warrior and airmanship qualities, and reinforce the Core
    Values expected of all airmen.
        We are moving beyond traditional Air Force and joint warfighting
    skills development. Our educational programs provide increased
    opportunities for airmen to receive focused cultural and language
    training, facilitating greater professional interaction, deeper
    understanding, and more effective operations.
        The expanded instruction includes cultural awareness, regional
    affairs, and foreign language proficiency. All Air Force Academy cadets
    and Reserve Officer Training Corps (ROTC) non-technical scholarship
    cadets will be required to take language courses. Additionally, both
    Academy and ROTC cadets have increased opportunities for Foreign
    Language and Area Studies degrees and have expanded Cultural Immersion
    and Foreign Exchange Programs. Our enlisted BMT also will provide
    instruction on cultural sensitivity.
        Once in the Air Force, each level of officer and enlisted
    professional military education (PME) provides additional cultural/
    regional instruction and some foreign language instruction, developing
    leaders who can articulate U.S. policy and operate effectively in
    foreign settings. Furthermore, we will increase Developmental
    Educational opportunities for global skills, including overseas PME and
    the Olmstead Scholars Program. We will then vector these airmen into
    Political-Military Affairs or Regional Affairs Strategist career
    tracks, maximizing America's return-on-investment.

                               CARING FOR AIRMEN

        The Air Force is wisely shifting a portion of funding from manpower
    and base operating support to address our critical recapitalization
    requirements. However, we understand that to maintain combat capability
    we must continue to balance our modernization of our weapons systems
    with development of airmen who are ready, willing, and able to employ
    them. To that end, we are finding innovative ways to transform our
    community support services and programs while avoiding unnecessary
    impacts to services delivered. One way we are transforming is through
    the headquarters realignment of Air Force Services from Logistics to
    Manpower and Personnel. This transition opens the door to increased
    efficiencies and a more seamless approach to customer service. We
    remain committed to ensure the needs of our airmen and their families
    are met.
        Taking care of our seriously wounded, injured, or ill airmen is a
    top priority. We continue to expand the Air Force Survivor Assistance
    and Palace HART Programs in an effort to provide the best possible
    individual service to these airmen and their families. The heart of the
    Survivor Assistance Program is the Family Liaison Officer (FLO) who is
    assigned to each patient for the duration of their need. The FLO serves
    as a single point of contact between the airmen and the numerous
    helping agencies. Our FLOs provide a critical resource to deal with the
    unfamiliar routine of the recovery process and prevents the Airman from
    being lost in the bureaucracy.
        Similarly, the Palace HART Program assigns a Community Readiness
    Coordinator (CRC) when a servicemember casualty notification is made.
    The CRC works closely with the FLO to ensure the combat related injured
    or ill servicemember and their family receives complete information and
    entitlements. Later, if the member is not returned to active duty, the
    Palace HART Program assists with Federal employment, entitlements and
    benefits information, financial resources, family support, and more.
    The member is tracked monthly for 5 years after separation or
    retirement.
        Our Fit to Fight program and food service operations are
    cornerstones of combat capability. Airmen who are well-fed and
    physically fit are healthier, think more clearly, handle more stress,
    and are better able to complete the mission despite reduced sleep and
    extended hours. This translates directly to increased combat capability
    from our most important weapon system--our people.
        We are also focused on providing quality, available and affordable
    child and youth development programs to airmen and their families
    through an extensive system of programs and services both on and off
    the installations. A recent national study highlighted the DOD child
    care program as leading the Nation in quality standards and effective
    oversight. We are proud of the Air Force's contribution to this program
    and believe that our child care program is a critical factor in helping
    airmen remain focused on the mission.
        Our Airman and Family Readiness professionals are helping airmen
    and their families adapt to the realities of life in an Expeditionary
    Air Force. They do this through personal and family readiness
    counseling, personal financial management, Air Force Aid assistance,
    spouse career planning, and transition and relocation assistance.
    Experts in the Equal Opportunity and Sexual Assault Prevention and
    Response arenas help every airman exercise positive and productive
    interpersonal relationships, in both professional and personal
    interactions. The Air Force is a family, and our clubs and recreation
    programs foster and strengthen those community bonds, and promote high
    morale and an esprit de corps vital to all our endeavors.
        Additionally, we are equally committed to ensuring that all airmen
    are well trained and provided with modern, safe and efficient equipment
    and facilities to complete their mission. We provide life-sustaining
    support, such as food service and lodging, to our troops in the field
    and essential community programs to our airmen and their families back
    home. Through innovative systems and programs and the hard work of our
    dedicated personnel we continue to provide critical mission capability
    for our commanders and vital support for our members and their
    families.

                                   CONCLUSION

        Today's airmen are performing at the high standards that have been
    our hallmark for as long as there have been American airmen. Our airmen
    are fully prepared and engaged today, and we must continue to invest to
    ensure tomorrow's air, space, and cyberspace dominance. We have taken
    prudent actions to ensure your Air Force remains the most respected air
    and space force in the world.
        We appreciate your unfailing support to the men and women of our
    Air Force, and I look forward to your questions.

        Senator Ben Nelson. Thank you, General.
        General Rochelle, what is the Army's actual end strength
    today?
        General Rochelle. The Army's actual end strength today,
    sir, is 507,000.
        Senator Ben Nelson. Can we reach 518,000 by the end of this
    fiscal year?
        General Rochelle. Sir, we can reach 518,000, and we plan to
    reach 518,000, by the end of this fiscal year.
        Senator Ben Nelson. If we scale down the presence in Iraq
    in the next year, I think, as the American people expect, would
    you believe that 547,000 will be the right number for our end
    strength at that time?
        General Rochelle. Sir, I wish I could predict the future
    that accurately, but I'm afraid I cannot. My commitment is to
    get us to 547,400, and then see where we are strategically, see
    where our Nation stands with respect to the global war on
    terror, and then take it from there.
        Senator Ben Nelson. With respect to the recruiting goals,
    as of January 2007, the Army's end strength is about 502,000,
    going to 518,000, but how can the Army increase its end
    strength by 7,000 per year without increasing the recruiting
    goal?
        General Rochelle. I'm glad you asked that question, Mr.
    Chairman. It's a combination of three things.
        Senator Ben Nelson. Okay.
        General Rochelle. First of all, what we anticipate to be
    very successful in recruiting, above the 80,000 regular-Army
    mission that U.S. Army Recruiting Command has; second,
    extraordinarily successful retention rates, and most
    especially, those retention rates are highest across our
    deployed and recently deployed forces; and third,
    extraordinarily successful--success in lowering attrition in
    initial-entry training, down from 2004, about 18.4 percent, to
    7 percent today.
        Senator Ben Nelson. I heard you say that you're not
    lowering your standards. Several colleagues have raised
    questions about whether or not that is the case--raising
    questions, in the sense of saying, ``I hope that in changing
    the admission requirements, it doesn't actually lower the
    standards.'' Can you assure me and my colleagues that we're not
    dumbing-down just to try to make the goals?
        General Rochelle. Sir, one can make a case, depending upon
    your point of departure. I had the good fortune of commanding
    U.S. Army Recruiting Command in 2004, when, based upon market
    conditions, based upon unemployment rates, based upon how close
    we were at that point to September 11, if you will, it was easy
    to bring our quality marks extraordinarily high. We are in a
    different climate today. Admiral Harvey spoke to it quite well.
    Propensity is declining.
        Now, let me go back to the point of departure. The point of
    departure should be from DOD standards with respect to high-
    school-degree completion rates, I to IIIA upper-middle category
    rates, and Category IV rates. We will meet all of those, as I
    said in my oral statement.
        Senator Ben Nelson. Okay, thank you.
        General Rochelle. Yes, sir.
        Senator Ben Nelson. Continuing, General Rochelle, Secretary
    Gates ordered the Services to report to him, by the end of
    February, their plan for--I think his word was ``minimizing''
    the use of stop loss. Does the Army have a plan to minimize its
    use of stop loss? Can you tell me where we are in that process
    right now?
        General Rochelle. Sir, we have submitted a proposal to the
    Office of the Secretary of Defense laying out our plan to
    minimize stop loss. There is no mandate to eliminate stop loss.
    I'd like to make that a matter of the record nor is there a
    mandate, as I said. But we have submitted that plan to the
    Secretary of Defense. It includes many things, such as
    attempting to ensure that we are not assigning individuals to a
    unit that is in the ready phase. Mr. Chairman, that becomes a
    challenge, however, given the fact that we are now accelerating
    many of our units. But those are the types of things that we
    are proposing.
        Senator Ben Nelson. All right.
        General Rochelle. We believe we can minimized stop loss.
        Senator Ben Nelson. What would ``minimize'' consist of?
    Using it less, for a shorter period of time? Or what does
    ``minimizing'' consist of?
        General Rochelle. Excellent question, Mr. Chairman. Let me
    give you my definition.
        At any given time between our Active component and our
    Reserve component, both elements of the Reserve component, the
    Army has roughly 10,000 soldiers who are stop-lossed; 7,000 of
    those are Active, 3,000 are Reserve and National Guard.
    ``Minimizing,'' in my definition, means that we reduce those
    numbers across both components, to the optimum levels possible.
        Senator Ben Nelson. Okay. Thank you.
        General Rochelle. Yes, sir.
        Senator Ben Nelson. Admiral Harvey and General Brady, as
    you are reducing your end strength, are you of the opinion that
    you're not reducing or drawing down too fast?
        General Brady?
        General Brady. I think that our drawdown plan has been
    driven, in large measure, by our need to recapitalize a
    rapidly-aging fleet. We have accelerated our drawdown to
    accommodate that reality. What we have done is to make sure
    that, as we draw down, we are focusing on retaining those
    skills in the appropriate numbers to make sure that we support
    the Air Expeditionary Force. In other words, the support of the
    warfighter forward is our primary responsibility, and we've not
    compromised any in that regard, nor in the training of the
    people that are going forward to do that. So, as I mentioned in
    my oral statement, this is a challenge, and we shouldn't fool
    ourselves. We think we are managing some risk in doing this.
    But it is the budgetary situation that we find ourselves in.
        Senator Ben Nelson. But you do believe you're managing the
    risk that this presents.
        General Brady. Yes, sir, we do.
        Senator Ben Nelson. Admiral Harvey, the same question.
        Admiral Harvey. Yes, sir. We started down this road about 4
    years ago. To the point you made in your statement about the
    war being with us for 4 years, at that time we had five carrier
    battle groups forward deployed, with a sixth coming out the
    gate, 80,000 sailors deployed to support the opening stages,
    the opening first months of Operation Iraqi Freedom. We had
    300,000 sailors ashore in that force, about 385,000 total.
    Today, we have 342,000 on the Active component. We have five
    carrier battle groups underway, three forward-deployed, two in
    training. We have the requisite number of sailors ashore to do
    the work ashore. So, the drawdown has been carefully mapped
    out, and we've followed that path pretty religiously for the
    last 4 years. It's focused first on the work. What is it we
    have to do? We now have the BRAC's infrastructure is known. We
    have a fleet target of about 313 ships, about 3,800 tactical
    aircraft, so we know the operational structure we have to
    maintain, and we have our revolution in training that we've
    been working through for 4 years that significantly reduced the
    amount of support structure, support sailors we had to have to
    sustain the combat capability we are deploying.
        So, sir, we'll never be comfortable, but I am confident
    that I can look you and our sailors in the eye and say we are
    proceeding with dispatch, but we are also proceeding carefully.
    We measure this out before we go. We know where we're going.
    We're confident we're going to reach our end state of about
    322,000 sailors and still be able to deliver the combat
    capability this Nation demands, and give our sailors a quality
    of service that they deserve.
        Senator Ben Nelson. Managing the risk is what this is going
    to be about, and I wish you well, and I certainly am hopeful
    that you'll be able to do so, because we have so much depending
    on it.
        Admiral Harvey. Yes, sir.
        Senator Ben Nelson. General Rochelle and General Coleman,
    we're concerned about the continuing reports of sexual assault
    on our servicemembers, especially those who were assaulted by
    fellow servicemembers while deployed. The victims of sexual
    assault frequently suffer long-term effects, including PTSD
    from the assault. An article in the March 18, 2007, New York
    Times magazine describes the impact of sexual assaults in
    service and combat zones on female servicemembers. Are the Army
    and Marine Corps aware of these sexual assaults occurring in
    the combat zones, as I'm sure you are, but at the level that
    they seem to be occurring? Are you aware of the many reports
    made by the female servicemembers stating that they suffer from
    PTSD as a result? Finally, what is being done to help stop the
    sexual assaults, to the extent it's possible to reduce them,
    and to help female servicemembers who have been victims of such
    sexual assaults?
        I'll start with you, General Coleman. Give General Rochelle
    a break here for a little bit.
        General Coleman. Yes, sir. Thank you, sir. Unfortunately,
    the numbers are up. I would venture to say that part of the
    reason is because we have encouraged our marines to come
    forward. I would say the good news is that they are coming
    forward. The bad news is that they're coming forward, because
    one sexual harassment case is one too many. We are holding our
    servicemembers accountable for every case that is
    substantiated, and we will continue to do all that we can to
    ensure that it does not happen again.
        Senator Ben Nelson. Without being naive, is additional
    training one of the ways to at least curb or reduce the number
    of assaults?
        General Coleman. Yes, sir, that's absolutely right. We are
    training. I just think that you could never train too much in
    those instances. I'm a father with five daughters. I don't
    think that you could ever justify a sexual assault or sexual
    harassment. But I can tell you, your Marine Corps is doing all
    that they can to continue training and also continue to
    encourage victims to come forward.
        Senator Ben Nelson. General?
        General Rochelle. Chairman Nelson, the Army is absolutely
    committed to making sure that we do not only everything we can
    to prevent sexual assault and sexual harassment, but, equally,
    that we are providing victims of sexual assault with every
    remedy possible to make them whole.
        You mentioned training, and I think that's where the Army
    is perhaps in the forefront. I make no comparison to my sister
    Services and my brothers sitting here. But we have recently
    prepared a very, very good training video, the opening comments
    of which are given by our Vice Chief of Staff of the Army,
    General Dick Cody, and the closing comments are given by the
    Sergeant Major of the Army, Sergeant Major Kenneth Preston,
    that is going to be incorporated in our existing training
    vehicles that will be Army-wide, and we are integrating those
    with a review of all of our sexual harassment and sexual
    assault training vehicles and tools.
        Senator Ben Nelson. Are you pursuing vigorously reporting
    and prosecution, wherever appropriate?
        General Rochelle. Sir, we are. We are investigating with
    our Criminal Investigation Division all unrestricted reports.
    Those are reports that go into our criminal systems and come up
    through command channels. I'm pleased to say that the
    restricted reporting procedure that went into effect in 2005
    appears to have given not only greater awareness, which is what
    General Coleman spoke to--greater awareness to what sexual
    assault is, what it looks like, and certainly what sexual
    harassment looks like.
        General Coleman. Sir, if I could add, in every case in the
    Marine Corps where a case of sexual assault was substantiated,
    disciplinary action was taken; and, most frequently, courts-
    martial.
        Senator Ben Nelson. What about follow-up care to the victim
    of such assaults? Is that being pursued, as well?
        General Rochelle. Sir, it is, to include counseling, as
    well as, obviously, any physiological care that's required,
    but, most especially, counseling, and by case managers, a
    little bit like we--the case-manager model that we use for our
    wounded warriors, that is being provided, as well.
        General Coleman. Same thing, sir.
        Senator Ben Nelson. Same?
        General Coleman. We do have follow-up.
        Senator Ben Nelson. I have a few other questions, but I
    think we could submit them for the record.
        Is there anything else that you'd like to tell the
    subcommittee on the record regarding preparation or other
    requirements that you might think that we should be
    considering?
        General Rochelle. Mr. Chairman, I'd like to take an
    opportunity, since you've opened the floor--and I appreciate
    it. First of all, I'd just simply like to say, for the record,
    that the Army is doing everything possible we can do to make
    our wounded warriors whole, in every sense of the word. The
    earlier panel, you addressed some questions to those
    distinguished gentlemen regarding the Medical Evaluation Board
    (MEB), Physical Evaluation Board (PEB)--I wish to assure you, I
    wish to assure our soldiers, family members, and the American
    people that we are absolutely committed, through compassion for
    our soldiers, we value what they bring to the table for the
    American people, and we certainly respect their sacrifices. As
    General Cody has said, as the Chief of Staff of the Army has
    said, as Acting Secretary of the Army Pete Geren has said, we
    will get this right. We're committed to doing that. Thank you.
        Senator Ben Nelson. Thank you, General.
        Any other comments?
        Admiral Harvey. Yes, sir. Just two points, sir, now that
    you've offered the opportunity. I would just ask that we
    continue to receive not only the support of this committee, but
    also the support, wherever we can, for the concept of service.
    This is an All-Volunteer Force, an All-Recruited Force. The
    propensity to enlist, in every demographic group in this
    Nation, has never been lower since we started measuring that
    propensity. The propensity of those who influence these young
    men and women to consider military service has also never been
    lower. It is a daunting situation that we face each day, and,
    certainly in my own part, the first thing I think about in the
    morning when I get going is recruiting, and it's the last thing
    I think about in the night when we're done. So, it is a very,
    very difficult environment we're in, and we're going to need
    the support, not just of this Congress, sir, but we need the
    understanding of this Nation for what an All-Volunteer Force is
    about, and what it takes to sustain that force.
        On one smaller point, sir, I know we're going to go into
    great detail on the processes that you mentioned in the earlier
    panel about MEBs, PEBs. As we go through that and seek to
    streamline, make it easier for the individual who is faced with
    that process to navigate that process and get to the right
    result, we can get it fast, and we can get it wrong. The
    existing process provides an awful lot of opportunities for
    each sailor to contest a finding at every point along the way.
    As we seek to gain efficiency, I don't want to place at risk
    that ability for every step in that tough process sometimes--
    that our sailors can stand up and say, ``No, I disagree,'' and
    we provide that individual counsel and counseling in how to
    make that disagreement public. So, those rights need to be
    protected as we seek to make this process smoother and more
    efficient overall, sir.
        Senator Ben Nelson. I would agree.
        General Coleman. Sir, I'd like to jump on the bandwagon of
    the recruiting. As the Army and the Marine Corps increase in
    strength--and the four of us are all--our Services are all
    after the same great young men and women--it's important that
    all folks know that it's a noble thing to serve your country.
    So, if we could continue to have your support in that line, I'd
    certainly appreciate it.
        Then there's nothing more important than the ability of
    Congress to provide the funds available to ensure that our men
    and women have the right equipment at the right time at the
    right place. If we can continue that, that's all we can ask,
    sir.
        Thank you, sir.
        Senator Ben Nelson. Thank you, General. There's no question
    but that preparation, training, and equipping the men and women
    that we ask to serve has to be one of the highest priorities
    that this committee can ever consider.
        General Brady. Sir, two quick points, and it gets to care
    of wounded. We don't have as many wounded as the ground forces
    have, but we do have what we consider a significant number. We
    are aware also that despite our best efforts, there will be a
    horror story out there, and we are proactively looking for that
    horror story. We are having our own audit agency look at our
    process, in terms of MEBs, PEBs, to make sure that we're doing
    that in the best interest of the servicemember.
        I'd like to also make a final statement that picks up on
    the point you just made, and that is--we talk a lot about
    quality-of-life, and that's important, but an important aspect
    of quality-of-life is making sure that our soldiers, sailors,
    airmen, marines, and coastguardsmen have the equipment and the
    training that allows them to prevail in the battlespace. That
    means the best equipment we can give them. So, recapitalization
    and providing equipment cannot be overstated.
        Senator Ben Nelson. Thank you very much, all of you, and to
    all the men and women that you're recruiting and all those who
    are serving abroad and at home, we appreciate very much that
    service. As important as compensation and all the things that
    you have to deal with in order to attract the right men and
    women to join the Services, there is nothing more important
    than patriotism. What we really have to do is continue to
    encourage people to think of what public service is, but also
    what serving their country is, when it comes to the military.
    So, I thank you for what you're doing, and I wish you the best
    of luck. We're all counting on you to be able to make the
    military as strong as it can possibly be, with the right men
    and women.
        Thank you. We are adjourned.
        [Questions for the record with answers supplied follow:]

                Questions Submitted by Senator Claire McCaskill

                                PATIENT FEEDBACK

        1. Senator McCaskill. Dr. Jones, the ability to freely transfer
    medical records between the Veterans Affairs (VA) and the Department of
    Defense (DOD) has been a long sought after capability. However, while
    the DOD and the VA have developed systems for electronic medical
    recordkeeping, the ability to share medical records has defied the two
    agencies. When do you think the capability to share electronic medical
    records will be achieved?
        Dr. Jones. In fact, the DOD and the VA share a significant amount
    of health information today. Beginning our electronic sharing in 2002,
    the Departments constantly seek to expand the scope of our
    capabilities. By the end of 2007, DOD will be sharing electronically
    with VA nearly every health record data element identified in our VA/
    DOD Joint Strategic Plan (JSP) for health information transfer. By
    2008, we will be sharing the remaining health record data elements
    identified in the VA/DOD JSP.
    Currently shared electronic medical record data:
             Inpatient and outpatient laboratory and radiology results,
            allergy data, outpatient pharmacy data, and demographic data
            are viewable by DOD and VA providers on shared patients through
            Bidirectional Health Information Exchange (BHIE) from 15 DOD
            medical centers, 18 hospitals, and over 190 clinics and all VA
            facilities.
             Digital radiology images are being electronically transmitted
            from Walter Reed Army Medical Center (WRAMC) and National Naval
            Medical Center (NNMC) Bethesda to the Tampa and Richmond VA
            Polytrauma Centers for inpatients being transferred there for
            care.
             Electronic transmission of scanned medical records on
            severely injured patients transferred as inpatients from WRAMC
            to the Tampa and Richmond VA Polytrauma Centers.
             Pre- and Post-deployment Health Assessments (PDHAs) and Post
            Deployment Health Reassessments (PDHRAs) for separated
            servicemembers and demobilized Reserve and National Guard
            members who have deployed.
             When a servicemember ends their term in service, DOD
            transmits to VA laboratory results, radiology results,
            outpatient pharmacy data, allergy information, consult reports,
            admission, disposition and transfer information, elements of
            the standard ambulatory data record, and demographic data.
             Discharge Summaries from 5 of the 13 DOD medical centers and
            hospitals using the Clinical Information System (CIS) to
            document inpatient care are available to VA on shared patients.
    Enhancement plans for 2007:
             Expanding the digital radiology image transfer capability to
            include images from WRAMC, NNMC, and Brooke Army Medical Center
            (BAMC) to all four VA Polytrauma Centers.
             Expanding the electronic transmission of scanned medical
            records on severely injured patients from WRAMC, NNMC, and BAMC
            to all four VA Polytrauma Centers.
             Making available discharge summaries, operative reports,
            inpatient consults, and histories and physicals for viewing by
            all DOD and VA providers from inpatient data at all 13 DOD
            medical centers and hospitals using CIS.
             Expanding BHIE to include all DOD facilities.
             Making available encounters/clinical notes, procedures, and
            problem lists to DOD and VA providers through BHIE.
             Making available theater outpatient encounters, inpatient and
            outpatient laboratory and radiology results, pharmacy data,
            inpatient encounters to include clinical notes, discharge
            summaries, and operative reports to all DOD and VA providers
            via BHIE.
             Beginning collaboration efforts on a DOD and VA joint
            solution for documentation of inpatient care.
    Enhancement plans for 2008:
             Making available vital sign data, family history, social
            history, other history, and questionnaires/forms to DOD and VA
            providers through BHIE.
             At Landstuhl Regional Medical Center, Germany, making
            available discharge summaries, operative reports, inpatient
            consults, and histories and physicals to VA on shared patients.

        2. Senator McCaskill. Dr. Jones, what are the major obstacles, what
    resources do you need to accomplish this goal, and do you have them?
        Dr. Jones. Our current and planned sharing initiatives described in
    our answer to your first question are funded with one exception. We
    mentioned that we are beginning collaboration efforts on a DOD and VA
    joint solution for documentation of inpatient care. A comprehensive
    electronic health record (EHR) to include inpatient care is DOD's goal;
    however, the first priority for Armed Forces Health Longitudinal
    Technology Application, the DOD EHR, was to address ambulatory care. VA
    is embarking on a modernization of its EHR to include the inpatient
    component.
        Since each Department was planning a new inpatient electronic
    record acquisition or modernization, DOD and VA have initiated this
    joint assessment project. We anticipate a contract award to a study
    support contractor in May 2007. A 6-month study will produce an initial
    recommendation on the feasibility of a joint acquisition/development
    strategy for an inpatient EHR. The Departments will then pursue follow-
    on activities to evaluate alternatives for funding and for selecting a
    technical solution over a subsequent 6-month period.

        3. Senator McCaskill. Dr. Jones, a recent New York Times article
    highlighted the challenges faced by women veterans in the wake of
    combat service. What programs exist within DOD to address the unique
    treatment requirements, especially in psychological treatment fields,
    of women soldiers?
        Dr. Jones. The following DOD programs address the unique deployment
    health concerns for all servicemembers. One must note that Post-
    Traumatic Stress Disorder (PTSD) and sexual assault are not gender
    specific and affect both male and female servicemembers.

             The PDHA is a screening program during in-theater medical
            out-processing or within 30 days after returning to home
            station. The purpose of this screening is to review each
            servicemember's current health, mental health, or psychosocial
            issues commonly associated with deployments, special
            medications taken during deployment, possible deployment-
            related occupational/environmental exposures, and to discuss
            deployment-related health concerns. Positive responses require
            further assessment and/or referrals for medical consultation
            and information on other resources available to help resolve
            any post-deployment issues.
             The Post-deployment Health Reassessment (PDHRA) program is
            designed to identify and address health concerns, with specific
            emphasis on mental health, that have emerged over time since
            deployment. The PDHRA provides for a second health assessment
            during the 3- to 6-month time period after return from
            deployment. The PDHRA is offered to all servicemembers who have
            returned from operational deployment, including all Active
            Duty, National Guard, and Reserve members, as well as those who
            have separated or retired since their return from deployment.
             The DOD Sexual Assault Prevention and Response Program is
            designed to prevent and eliminate sexual assault within the
            Department by providing comprehensive procedures to better
            establish a culture of prevention, response, and accountability
            that enhances the safety and well-being of all DOD members.
             DOD established protocol to ensure a consistent level of care
            and support for victims of sexual assault, and implemented a
            fundamental change in how the Department responds to sexual
            assault by instituting the option of confidential reporting for
            victims of sexual assault. With a restricted reporting option,
            the sexual assault victim can confidentially disclose the
            details of the assault to specified individuals and receive
            medical treatment, mental health/counseling, and advocacy
            without automatically triggering the official investigative
            process. Restricted reporting also provides victims the time,
            care, and empowerment to consider changing to unrestricted
            reporting and pursuing an investigation at a later date.
            Regardless of which type of reporting is chosen, medical
            services offered to victims of sexual assault include the
            ability to elect a Sexual Assault Forensic Examination (SAFE)
            in addition to the general medical management related to sexual
            assault response. Case Management services are provided for
            victims choosing unrestricted reporting, to include
            coordination with the victim advocate, military criminal
            investigator, military law enforcement, health care provider
            and mental health/counseling services, chaplain, command legal
            representative or staff judge advocate, and the victim's
            commander. The team carefully considers and implements
            immediate, short-term, and long-term measures to help
            facilitate and assure the victim's well-being and recovery from
            the sexual assault.

        4. Senator McCaskill. Dr. Jones, do you think the Department has
    dedicated sufficient treatment and research resources to women soldiers
    in the wake of their particularized needs following combat service?
    What more do you think we should be doing?
        Dr. Jones. PDHA screening and the PDHRA Program reaches all
    servicemembers regardless of gender. Health care issues that are
    identified through screening are assessed and referrals for appropriate
    care are initiated. Data from the PDHA and PDHRA are sent to the Army
    Medical Surveillance Activity for inclusion in the Defense Medical
    Surveillance System. Force health data, service data, and gender-
    specific health data, both in-theater and in-garrison, are examined and
    compared.
        There are a number of research projects that have been completed or
    are currently in progress that address force health protection and
    readiness deployment issues. Research programs in this area are to
    safeguard the health of servicemembers before, during, and after
    deployment. PTSD is a major area of focus, with several studies looking
    at both men and women veterans. One study investigates cognitive-
    behavioral treatment for PTSD in women; however, most studies are not
    gender specific.
        The Defense Advisory Committee on Women in the Services is
    currently conducting focus group research looking at women's health
    care in Operation Iraqi Freedom (OIF)/Operation Enduring Freedom (OEF).
    Research findings and recommendations for women's health care in-
    theater will be provided to the Under Secretary of Defense for
    Personnel and Readiness at the completion of the study.
        In June 2006, the DOD Sexual Assault Prevention and Response
    Program was revised to provide victims with the option of restricted or
    unrestricted reporting. The restricted report allows the victim to
    obtain medical services and counseling and the collection of forensic
    evidence without disclosure to law enforcement or the chain of command.
    Victims who come forward and report, either by restricted or
    unrestricted reporting, can access medical and other services needed
    for treatment and recovery. Across DOD, sexual assault response
    coordinators and victim advocates were hired and trained, and are
    available at all locations, including deployed areas. Resources are
    available for reporting and treatment of sexual assault victims, when
    they are reported.

        5. Senator McCaskill. Dr. Jones, I recently proposed an amendment
    to the Fiscal Year 2007 Wartime Supplemental Appropriations Bill that
    would have required a study on the mental health care and readjustment
    needs of servicemembers returning from service in Iraq and Afghanistan.
    This study was to be conducted by the National Academy of Sciences and
    was to be modeled on the landmark 1983 National Vietnam Veterans
    Readjustment Study, a study that was not conducted until 15 years after
    the height of the Vietnam conflict.
        Can you tell me whether you think sufficient research resources are
    being dedicated to studying the landmark injuries of these wars, such
    as PTSD and Traumatic Brain Injury (TBI)?
        Dr. Jones. Both the DOD and the VA are focused on OEF/OIF
    servicemembers and veterans and their health issues, as well as health
    outcomes. In DOD, we conduct health assessments as servicemembers leave
    the theater of operations and 3 to 6 months after they return home.
    These health assessments are scrutinized for the symptoms or concerns
    that may be related to the deployment. Physical health issues such as
    TBI and mental health issues such as PTSD are at the top of the list of
    concerns. We are not only interested in determining if symptoms are
    present, but also in determining the functional capabilities of each
    individual. If further medical evaluation or treatment is recommended,
    we work to track and determine health outcomes, such as return to duty
    or medical retirement/separation. We share with VA the names and social
    security numbers of the OEF/OIF veterans who leave Active Duty,
    including those who return to National Guard or Reserve status. VA
    notifies these individuals of their earned VA benefits, advises of the
    availability of 2 years of VA medical care for issues that may be
    related to their deployment, and tracks their use of VA medical
    services.
        The VA and DOD are coordinating on how to design or develop better
    systems, including research initiatives by experts in and out of the
    Federal Government to continue to monitor and enhance health outcomes
    for these OEF/OIF servicemembers.

        6. Senator McCaskill. Dr. Jones, have we sufficiently empowered
    scientifically based, independent research agencies to conduct this
    research?
        Dr. Jones. The DOD has an aggressive research program, including
    many initiatives in the Peer Review Medical Research Program, and we
    actively solicit the assistance of the National Institutes of Health to
    assist our research efforts.

        7. Senator McCaskill. Dr. Jones, do you believe now is the time to
    embark on a broad, landmark study of reintegration and mental health
    treatment for our returning combat veterans?
        Dr. Jones. Any executable research premise must be validated by a
    scientific process. Today, some 800,000 OEF/OIF veterans have left
    Active Duty after returning from theater and returned to the civilian
    world. Over half of those individuals continue to be members of the
    National Guard or Reserves. Some 500,000 Active Duty servicemembers
    have deployed to OEF/OIF at least once and returned to their duty
    stations.
        To study the reintegration of these individuals would require the
    development of measurable criteria for successful versus unsuccessful
    reintegration, the willingness of these individuals to participate in
    such a study, defining a comparison population, and then a many year or
    decades long study to reach a conclusion. Locating and contacting those
    individuals who are no longer on Active Duty may be problematic.
        A study on mental health treatment would require developing a
    definition of ``mental health treatment,'' building a centralized list
    of individuals who are getting ``mental health treatment,'' and looking
    at medical outcomes. Other considerations include the protection of
    personal health information and potential concerns about being included
    on such a national list. In our society, the majority of ``mental
    health treatments'' is given in primary care, not necessarily by mental
    health providers. Other related support is provided by clergy, online
    resources, and telephone help centers.
        The 2005 RAND Corporation study, ``How Deployments Affect
    Servicemembers'', produced specific recommendations regarding family
    support, communications, stress management, mental health care,
    adaptive training, less ambiguity in deployment dates, and compensation
    adjustments that may mitigate some adverse effects of combat
    deployments, and facilitate reintegration of combat veterans.
        The ongoing Millennium Cohort Study will also contribute vital
    information about the long-term effects of military and combat service,
    with recurring assessments of the cohort through 2022.

        8. Senator McCaskill. Dr. Jones, in my review of the recent scandal
    at WRAMC and within military health care, I was particularly disturbed
    by the lack of empowerment of many military health care patients.
    Negative feedback appeared to be insufficiently solicited and, even
    more troubling, often ignored or dismissed. Knowing that patient
    feedback is critical to monitoring the successes and failures in a
    treatment system, has the Department considered enacting a Department-
    wide patient feedback system that will both provide important feedback
    to providers but also permit grading of various military medical
    treatment facilities on successes and failures across uniform areas of
    evaluation?
        Dr. Jones. The Military Health System has long used surveys to
    solicit feedback from its patient population. We are developing new
    surveys to specifically study the care of our wounded warriors. The
    Wounded Warrior Telephone Survey will be in the field in early May
    2007. The purpose of the survey is to provide quick, ``pulse''
    information to identify the health care and transitional experiences of
    servicemembers and their families, post operational deployment. The
    survey results are expected in late June 2007. Additionally, we are
    developing a comprehensive mail/Web-based survey to gather more
    detailed information from our wounded warriors. This survey will be in
    the field in July 2007. The mail/Web-based survey results are expected
    in early September 2007.

        9. Senator McCaskill. Dr. Jones, if patient satisfaction surveys
    are used within DOD hospitals, to what extent are they used, to what
    extent are they uniform, and how have you used these surveys in making
    management decisions?
        Dr. Jones. Patient satisfaction surveys are performed on an ongoing
    basis by both the TRICARE Management Activity (TMA) and the Services,
    with management decisions made at the Service and TRICARE Regional
    Office level. Customer (patient) satisfaction is one of the top line
    measures in our Balanced Score Card that is reviewed quarterly by
    senior leadership. TMA conducts patient satisfaction surveys, to
    include the Health Care Survey of DOD Beneficiaries, the TRICARE
    Inpatient (Obstetric, Medical, and Surgical) Satisfaction Survey, and
    the TRICARE Outpatient Satisfaction Survey in Military Treatment
    Facilities (MTFs) and the network. The Services currently conduct
    numerous surveys, to include the provider level satisfaction survey in
    MTFs.

                            RECRUITING IMPROPRIETIES

        10. Senator McCaskill. Lieutenant General Rochelle, Vice Admiral
    Harvey, Lieutenant General Coleman, and Lieutenant General Brady, I
    have previously questioned General Casey, the nominee to be Chief of
    Staff of the U.S. Army, about improprieties conducted by recruiters.
    Specifically, I was concerned about misrepresentations made by
    recruiters to potential recruits about what the nature of the recruits'
    potential service would be--whether it be the dangers they will be
    exposed to, the potential for overseas deployment, the job they will
    receive, or otherwise. Can you please clarify what your Service is
    doing to ensure that the information provided to potential recruits is
    accurate and truthful?
        General Rochelle. Trust is the bedrock of Army culture and a
    fundamental characteristic of the Warrior Ethos. Leaders and soldiers
    throughout our Army share your concern regarding the cases of improper
    misrepresentation of the risks associated with answering our Nation's
    call to duty during this time of sustained conflict, regardless of how
    few they may be. The Army will not tolerate such behavior from our
    recruiters, has made this point known to all, and commanders will take
    the appropriate actions to punish those who willfully violate the
    sacred trust placed in us by the American public. We fully understand
    that volunteering to serve in the Army is a person's commitment to
    defending this Nation and believe that each person must be made aware
    of both the benefits and risks that this commitment entails.
        Admiral Harvey. Navy leadership shares your concerns about
    recruiter improprieties and their impact on the public trust. Recruiter
    ethics and the assurance that accurate enlistment information is
    provided to every Navy applicant are clearly defined in Navy
    instructions, which guide the actions of our recruiting personnel. This
    includes, but is not limited to, recruiting ethics and providing
    enlistment information regarding military service obligation,
    enlistment programs, incentives, and Navy life.
        General Coleman. Our recruiters receive extensive training
    concerning ethics and representing the Marine Corps truthfully. Our
    Service has always had a reputation for deployments into harms way.
    Therefore, we do not see this type of misrepresentation as an issue for
    the Marine Corps. We do understand that misunderstandings can occur and
    occasionally recruiter misconduct occurs. However, this is the
    exception and not commonplace.
        General Brady. Air Force Recruiting Service has a zero-tolerance
    policy and will not accept any recruiter purposefully misleading an
    applicant. Potential recruits are provided in writing information
    pertaining to the recruiting process and a contract confirming their
    selected job choice.
        Every potential recruit is briefed on the job selection process and
    is guaranteed either a specific job or general job area based on their
    qualifications. Before being assigned a job or general area the recruit
    must confirm and sign for the job offered, even if it is on their list
    of choices. In addition, we have applicants read and sign a statement
    confirming they understand that we are an expeditionary force, that
    overseas deployment is likely, and that they have the potential of
    deploying as part of an Army unit.
        Through initial and recurring training, our recruiters are trained
    on appropriate recruiting procedures and are consistently reminded of
    how purposely providing misinformation risks morale, good order and
    discipline, and unit cohesion, as well as damage Air Force image. While
    the percentage of recruiters actually found to have purposely passed on
    misleading information is negligible, once found, they have been
    administratively disciplined, removed from position or, in extreme
    cases, court-martialed.
        Air Force recruiting policies and procedures are continuously
    reviewed to ensure our airmen uphold the highest moral and ethical
    standards. We believe our current procedures deter recruiters from
    providing inaccurate information and encourage them to provide accurate
    and truthful information to potential recruits.

        11. Senator McCaskill. Lieutenant General Rochelle, Vice Admiral
    Harvey, Lieutenant General Coleman, and Lieutenant General Brady, a
    recruiting battalion in the U.S. Army has decided, on a pilot basis, to
    place cameras in their recruiting stations. While I understand that
    much recruiting takes place away from the recruiting station, this
    endeavor strikes me as beneficial in multiple ways. For example, it
    protects recruiters from any potential violence that might be directed
    at them by those who might make the military a target in light of
    ongoing world events. Further, it protects potential recruits who will
    know that the conduct of the recruiter in their presence will be
    recorded and should there be an impropriety, it will be documented. The
    camera, in this sense, will also serve as a deterrent. Can you discuss
    whether you think this is a valuable idea and whether it might be worth
    considering expanding the pilot and/or the practice? What would the
    costs be to enact such a measure?
        General Rochelle. The United States Army Recruiting Command will
    conduct a Security Camera Surveillance Pilot Program in its New York
    City Battalion and expects to have security cameras installed in 38 of
    the battalion's stations by the end of May 2007. In high-crime incident
    areas, the employment of security cameras is a prudent practice;
    however, the security situation across the command does not warrant the
    universal installation of security cameras. In fiscal year 2006, the
    Army experienced less than 30 cases of vandalism/theft at its
    approximately 1,700 recruiting stations, nationwide. In light of this
    relative low-incident rate, the $5 million cost to install security
    cameras in all recruiting stations would exhibit poor stewardship of
    the funds the American people entrust to us for the defense of the
    Nation. As you have stated in your question, recruiting activities for
    the most part occur away from the station and the minimal deterrent
    effect that cameras will have on recruiting impropriety does not merit
    the cost of the program. Furthermore, the limited assistance cameras
    will provide leaders in identifying recruiting improprieties will pale
    in comparison to the loss of trust that we will experience from our
    subordinates. Technology will never be able to serve as a surrogate for
    the Army values of Loyalty, Duty, Respect, Honor, or Integrity nor can
    it replace the benefits of effective leadership.
        Admiral Harvey. While there may be many advantages to installing
    cameras in recruiting stations, much of the recruiting process and
    associated dialogue occurs away from the station. Remote monitoring of
    individual recruiting stations could improve the safety of personnel
    and property, act as a deterrent to improprieties, allow for analysis
    of walk-in traffic into the station, and provide use of the video
    footage as a training tool. Conversely, remote monitoring can present
    an appearance of distrust in honest and trustworthy personnel, and
    possibly raise questions regarding the personal privacy of potential
    applicants.
        While installation of cameras may provide a means of increased
    security at recruiting stations, the DOD currently has a security
    contract with the Army Corps of Engineers, which has added security
    mitigations to more than half of Navy Recruiting Stations (NRS). Under
    this contract, additional stations will receive security mitigations
    each year in order of priority based upon determination of associated
    risk.
        In some cases, installation of cameras may also deter some
    recruiting irregularities; however, since the nature of the recruiting
    business often calls for much of the associated dialogue to occur in
    locations outside of the recruiting stations, this would not offer a
    failsafe solution to mitigating improprieties.
        A current Army pilot program uses local systems with Digital
    Versatile Disc (DVD) recordings that are mailed to a central location
    at an approximate cost of $1,800 per unit for equipment installation
    and $700 annually for purchase of DVDs, mailings, et cetera. This would
    equate to a start-up cost of $2.5 million, with an annual operating
    cost of $1 million to equip 1,400 NRS. This system has inherent
    problems associated with the possible compromise of DVDs on which
    possible improprieties may have been documented. While web-based real-
    time video feed would be a preferred application, the associated cost
    would increase significantly. We have estimated the initial cost of
    equipping 1,400 NRS with monitoring capability and video storage at
    $13.7 million for hardware installation with an annual operating cost
    of $370.5 million for data feed processing equipment at Navy Recruiting
    Command Headquarters. This approach would also require 30 additional
    personnel (26 network technicians, 2 network engineers, and 2 data
    management technicians).
        While I remain committed to taking all reasonable measures to
    eliminate recruiter improprieties, I do not currently view the use of
    video surveillance as a practical or cost effective approach.
        General Coleman. We do not see this to be an effective measure for
    deterring such activity. As stated in the question, much of the
    recruiting and discussions with applicants take place away from the
    recruiting offices. We also do not see this as a deterent to any type
    of protest against recruiters. Those who protest often seek media
    coverage. The cost of such a program would far outweigh any potential
    benefit. The cost of such an endeavor would require extensive analysis
    and is not currently available.
        General Brady. Air Force recruiters maintain the highest standards
    of our Service. In addition to internalizing the Air Force core values
    of Integrity, Service, and Excellence, all 1,200 recruiters have taken
    an Air Force Recruiter Pledge (signed and displayed in each office) to
    never mislead, lie to, or take advantage of a recruit. The pledge
    ensures that every recruit is treated as a future brother- or sister-
    in-arms. The integrity a recruiter introduces as the first ``voice'' of
    the Air Force serves as the benchmark. The stakes are high and so are
    our standards. Because of these high recruiting standards and the cost
    of installing and maintaining these systems, the Air Force is not
    considering adding cameras in recruiting stations at this time.
        The Air Force applauds the Army for taking measures it deems
    necessary to ensure the safety of its soldiers. The Air Force feels it
    has all the necessary measures and policies already in place to ensure
    the safety of both the recruits and the recruits.
        Our estimates show that camera installation cost is $300 per office
    (for two cameras at each location). Based on our total number of
    offices, that Air Force Recruiting Service would spend approximately
    $360,000 for installation. Setup and monitoring would increase the cost
    considerably, and an additional system would be required to record the
    footage. In light of the cost of implementation and the high standards
    our recruiters already uphold, we believe placing cameras in Air Force
    recruiting stations will provide little added value.

        12. Senator McCaskill. Lieutenant General Rochelle, Vice Admiral
    Harvey, Lieutenant General Coleman, and Lieutenant General Brady, on
    several occasions, news agencies have conducted investigations using
    hidden cameras to view recruiter practices presented to a potential
    recruit. Unfortunately, these investigations have uncovered troubling
    practices by individual recruiters on several occasions. Does your
    Service's recruiting command conduct similar investigations using fake
    recruits to provide a check on recruiters?
        General Rochelle. No, the United States Army does not employ this
    practice.
        Admiral Harvey. Navy Recruiting Command does not employ this method
    as a means of monitoring the practices or performance of Navy
    recruiters.
        Nonetheless, we take very seriously the issue of recruiting
    improprieties and have robust methods for providing recruiters with
    direction, support, and counseling to reduce the likelihood of their
    compromising their own personal integrity or the public trust in Navy
    recruiting.
        Formal opportunities are available to new recruits, upon reporting
    to Recruit Training Command to report instances of, or perceived,
    possible recruiter impropriety. All such allegations are thoroughly
    investigated by the Navy Recruiting Command Inspector General, who
    maintains a database to record, track, and identify isolated or
    systemic problem areas.
        Navy Recruiting Command headquarters staff personnel routinely
    inspect each Navy Recruiting District to ensure that policies are being
    scrupulously followed, to report any irregularities, and, where
    irregularities are discovered, to initiate appropriate corrective
    actions and training.
        General Coleman. No, Marine Corps Recruiting Command does not do
    similar investigations to check on recruiters.
        General Brady. No, we do not implement that practice. While some
    military recruiters have been called into question by news agencies
    using hidden cameras techniques, to date, no Air Force recruiters have
    been implicated during these interviews. In fact, several news agencies
    have praised Air Force recruiters for being honest and ``upfront about
    the dangers of enlisting and the benefits of serving.''

                 MILITARY PAY AND PERSONNEL PROCESSING SYSTEMS

        13. Senator McCaskill. Secretary Chu, the DOD has embarked on an
    expansive effort to develop a uniform personnel and pay processing
    system. It is my understanding, however, that the Defense Integrated
    Military Human Resources System (DIMHRS) (Personnel/Pay) has
    experienced significant development problems. Can you update me on the
    status of the DIMHRS system and challenges that remain?
        Dr. Chu. DIMHRS has not experienced significant development
    problems. It has experienced significant programmatic problems. The
    DIMHRS program was initiated in February 1998. The development contract
    was not awarded until September 2003. By that time, the funding stream
    no longer matched the revised development schedule. The Navy was the
    acquisition agent for DIMHRS from 1998 until 2005. In 2005, the DIMHRS
    program was not funded and there were many critical vacancies in the
    program management staff, including both the Program Manager and the
    Technical Director. The Department turned the program over to the
    Defense Business System Acquisition Executive (DBSAE) in the Business
    Transformation Agency (BTA). At that time, the DBSAE had to completely
    revalidate the program, the contracts, the costs, and the schedule. The
    program is now in the process of being re-baselined.
        Although there are no problems with the development, there are some
    critical challenges that we face. Our legacy military personnel and pay
    systems are out of date and expensive to maintain. The Department wants
    to be aggressive in turning these systems off and migrating to DIMHRS--
    but any migration of this type involves a lot of work that is not
    related to the development of the new system. As with all migrations,
    there are two primary challenges.
        The first challenge is loading legacy data into the new system. All
    of the data on the careers of the current military personnel must be
    loaded into the new system from a large set of legacy systems. For each
    piece of data that is to be loaded, the authoritative source must be
    identified and an interface must be built to transfer the data from the
    legacy system to the new system. Conflicting data must be reconciled
    prior to loading; the more complex the legacy environment, the more
    complex the task.
        The second challenge is change management. DIMHRS incorporates
    several transformational improvements, such as the integration of
    personnel and pay, the ability to provide cross-service support, and
    new self-service capabilities. The new system will look and feel
    different from the old systems and there will be new, streamlined
    processes. The Services are meeting the challenge with change
    management programs to educate and train their personnel on the new
    business rules, the new procedures, and the use of the new system.

        14. Senator McCaskill. Secretary Chu, what has been done to address
    concerns raised by the Government Accountability Office (GAO) about
    DIMHRS?
        Dr. Chu. The original report, ``DOD Systems Modernization:
    Management of Integrated Military Human Capital Program Needs
    Additional Improvements,'' was completed December 14, 2004. There were
    a number of recommendations; the DOD did not fully concur with all of
    the recommendations. The GAO began a follow-up review in December 2006
    that has not been completed. However, we continue to work the original
    recommendations as appropriate.
        The recommendation of establishing a DOD-wide integrated governance
    structure for DIMHRS that vests an executive-level organization or
    entity representing the interests of all program stakeholders with
    responsibility, accountability, and authority for the entire DIMHRS
    (Personnel/Pay) program was addressed with the establishment of the
    Defense BTA. On October 7, 2005, the Deputy Secretary established the
    BTA and transferred the DIMHRS Program to the BTA. On December 1, 2005,
    the Deputy Secretary directed a series of actions relative to the
    DIMHRS program that included detailed analysis in the form of Service
    assessments. The Army's detailed analysis was completed in September
    2006. The Air Force assessment began in January 2006 and was completed
    November 2006. The initial Navy assessment concluded in June 2006 and
    results were presented to the Defense Business Systems Management
    Council on July 26, 2006. The program is still in the process of re-
    baselining with the Army scheduled to implement DIMHRS (Personnel/Pay)
    in August 2008, followed by the Air Force in November 2008.
        Specifically, we are working closely with the BTA, the Defense
    Business Systems Acquisition Executive and the DIMHRS Enterprise
    Program Manager (EPM) to jointly ensure an integrated, coordinated, and
    risk-based approach to all DIMHRS (Personnel/Pay) definition, design,
    development, and deployment activities is employed.
        The DIMHRS (Personnel/Pay) requirements were complete and correct
    to the extent that any documentation can be correct before the transfer
    to the BTA. The design was fully traceable to the requirements,
    including the applicable financial system and accounting requirements.
    The rest of the documentation of requirements for DIMHRS was an
    innovative and unprecedented effort to ensure full traceability from
    documentation of requirements through design, development, and
    maintenance.
        The DIMHRS requirements are consistent with the Business Enterprise
    Architecture for military personnel and pay. We continue to monitor
    legislative and policy changes that may affect DIMHRS (Personnel/Pay)
    requirements. When changes are required the appropriate change requests
    are created and submitted to the EPM for the next Configuration Control
    Board.
        Finally, to address the recommendation for an integrated master
    schedule, the EPM developed an Integrated Master Program Schedule. This
    schedule is being used to guide design, development, and deployment to
    the Services and the Department. The EPM is in the process of
    establishing the baseline for Initial Operating Capability (IOC) and
    all future requests will be queued for a release after IOC to the first
    Service.

        15. Senator McCaskill. Secretary Chu, it has been brought to my
    attention that the Marine Corps developed an interim personnel and pay
    system known as the Marine Corps Total Force System (MCTFS). I have
    been informed that MCTFS has proven a very successful, integrated
    system and that the Navy is interested in fielding MCTFS while they
    await final development and fielding of DIMHRS. Can you comment on
    whether you think the fielding of MCTFS to the Navy would be cost
    effective in light of the future expected fielding of DIMHRS?
        Dr. Chu. The Marines have an integrated personnel and pay system
    that works very well for them. MCTFS uses Marine Corps data and Marine
    Corps business rules and therefore needs a lot of enhancements and
    modifications to be used by the Navy. As I understand it, the Navy
    plans to use MCTFS as an interim system and then migrate to DIMHRS.
        If MCTFS were to be the final Navy solution, there are
    considerations in addition to the costs. One of the most critical
    deficiencies of our current processes for managing military personnel
    and pay is that we cannot provide cross-Service support. This is a
    highly important core requirement for the integrated personnel/pay
    capability--both for the servicemembers and for the joint commanders
    and warfighters. When our servicemembers who are assigned to units
    managed by other Services must go to their parent Service locations to
    receive basic personnel and pay support, it is primarily an
    inconvenience when they are at a U.S. location, but it can put them at
    serious risk in a hostile environment. Similarly, at Joint Commands,
    the Services must provide duplicative capabilities so that each Service
    can provide personnel and pay support to its assigned personnel. This
    is inefficient at best. Further, the use of different systems makes it
    very difficult to get a useful view of the entire set of resources in a
    theater of operations.
        While the Navy could modify MCTFS for an integrated personnel and
    pay capability for Navy and Marine Corps personnel, it would not
    provide cross-Service support without significant and extremely complex
    additional modifications.
        If the Navy were to use MCTFS for its integrated personnel and pay
    system while the Army and the Air Force used DIMHRS, it is clear that
    cross-Service support would not be available except within the
    Department of the Navy and between the Departments of the Army and Air
    Force. That is not in the best interests of either the Department or
    our servicemembers.

        16. Senator McCaskill. Secretary Chu, do you expect DIMHRS to
    provide equally successful pay and personnel processing as MCTFS has
    provided to the Marine Corps? If not, have you considered employing
    MCTFS in place of DIMHRS?
        Dr. Chu. DIMHRS has been designed to provide integrated personnel
    and pay capability that is as fully successful or more successful than
    MCTFS. The Department did consider using MCTFS before embarking on the
    DIMHRS program. There were several reasons why the Department decided
    not to use MCTFS.
        MCTFS uses Marine Corps data and Marine Corps business rules and
    processes. It is very easy to note that a system works for one Service,
    but very difficult to implement that same system in another Service
    without extensive modification either of the system or of the
    processes, data, and business rules of the receiving Service. As an
    example, the Defense Joint Military Pay System (DJMS) was an Air Force
    pay system, using Air Force business rules and Air Force data. In 1991,
    the decision was made to use DJMS for the Army and Navy. It was first
    implemented in the Army (in 1992) and Army pay essentially broke down.
    It took several years to figure out all of the problems with the
    imbedded business rules and data differences between Army and Air
    Force. (Similar data had different meanings; the Army did not collect
    some data; and many imbedded business rules were different, creating
    problems in implementation.) One simple example: When Air Force
    personnel were up for re-enlistment, they had to make their re-
    enlistment decision 120 days before the end of their current
    enlistment. Army personnel were able to make that decision at the last
    minute--when Army personnel made their decision after the Air Force
    cut-off date, the system prepared to cut them off and then, at the end
    of their current enlistment, they were kicked out of the system. They
    could not be simply re-entered into the system because of the imbedded
    Air Force business rules. There were several hundred issues like this
    that needed to be resolved. Since we would have to go through this kind
    of process anyway, it seemed more sensible to adopt joint business rule
    standards (and recognize when Service-specific rules were required)
    than to be forced into decisions based on system performance rather
    than the right way to do business. The Army and Navy still use
    extensive manual work-arounds to use DJMS.
        MCTFS does not support Guard personnel or many specific specialties
    of the other Services (for instance the medical specialties). This
    means that there would have to be new code written for the special
    business rules associated with the Guard and associated with the
    specialties not in MCTFS.
        While MCTFS has some enhanced front-end access developed in recent
    years, the underlying core software is still primarily the common
    business oriented language and assembler language. The Department
    analyses led them to decide to use commercial off-the-shelf (COTS) and
    found a COTS product that could be adopted with little modification to
    support military business rules.
        At this point, the common business rules and data have already been
    defined and coded in DIMHRS (based on joint analysis and workshops with
    all 10 DOD components). It would not make sense to stop and start over.
        ``Equal capability'' does not mean identical processing rules. For
    instance, MCTFS requires dual input of data for pay impacting
    information. To mirror this capability in DIMHRS would require
    extensive modification of the COTS product. In fact, DIMHRS uses the
    COTS capability that is considered a best practice--to review and
    correct data by exception rather than require dual entry of all data. A
    comparison of capabilities should be focused on functional outcomes,
    not on how the systems process data.
                                     ______

                   Questions Submitted by Senator Mark Pryor

                             MENTAL HEALTH SERVICES

        17. Senator Pryor. Dr. Jones, when our soldiers who are deployed in
    combat fall victim to improvised explosive devices (IEDs), many times
    it is the concussion impact, not shrapnel, that causes the most
    significant injury. These head traumas consequently require a lengthy
    and specialized rehabilitation to return our wounded servicemembers to
    a normal cognitive thought process and speech capability. What steps do
    you plan to take to resolve the significant lack of psychologists and
    psychiatrists to treat these servicemembers?
        Dr. Jones. Professional mental health provider staffing currently
    ranges by specialty from 75 to 85 percent of authorized billets in the
    Service branches. The Services have, at their disposal, the use of
    Critical Skills Retention Bonuses and educational loan payback
    incentives to adjust incentives to retain needed personnel.
    Psychiatrist retention is also incentivized with physician bonuses.
    Mental health providers play a role in the management of those with
    Traumatic Brain Injuries, as well as other specialized therapists who
    provide intensive rehabilitation treatments such as speech and other
    occupational therapies. In addition, primary care providers provide
    mental health service and support in our system, often administering
    psychotropic medication, including antidepressants, which are helpful
    for those with mood and anxiety disorders associated with their
    injuries.

                               SERVICE COMMITMENT

        18. Senator Pryor. General Brady, a few years ago the Air Force
    changed its Active Duty service commitment for pilots from 8 years to
    10 years. What factors contributed to this decision?
        General Brady. The Air Force has used both analysis and our
    experience with pilot retention over the years to determine the best
    mix of commitment and incentives to ensure we have a force ready to go
    to war. Over time, pilot retention varies with ``market conditions'',
    principally the hiring practice of civilian airlines. We have concluded
    that for the current market conditions, a 10-year commitment followed
    by a 5-year bonus/commitment combination is best for ensuring we retain
    that ``go to war'' force.

        19. Senator Pryor. General Brady, what is the current pilot bonus?
        General Brady. The current pilot bonus is $25,000 per year in
    return for a 5-year commitment.

        20. Senator Pryor. General Brady, do navigators and other flight
    crew members have a similar bonus?
        General Brady. Navigators do not receive a bonus. Navigators were
    offered a bonus from fiscal year 2003 through fiscal year 2005;
    beginning in fiscal year 2006, navigators were no longer offered a
    bonus due to healthy career field manning. Air battle managers receive
    a bonus of $15,000 per year in return for a 5-year commitment.

                                EARLY SEPARATION

        21. Senator Pryor. General Rochelle, what are some of the reasons
    surveyed for those personnel who elect to separate before retirement
    (both officer and enlisted)?
        General Rochelle. The fall 2006 Sample Survey of Military Personnel
    has identified (from a list of 58 aspects of Army life) the following
    as the most important reasons for officers and enlisted soldiers for
    leaving or thinking about leaving the Active component Army before
    retirement:
        Concerning the population of commissioned officers and warrant
    officers, the amount of time separated from family (30.4 percent) was
    the overall leading indicator of dissatisfaction with military service.
    The next are of concern was amount of enjoyment from job (7.8 percent).
    The third leading indicator of dissatisfaction was amount of pay
    (basic) (6.3 percent). Finally the overall quality of Army life (6.0
    percent) was the fourth highest reason of dissatisfaction.
        For the enlisted soldier population, the amount of time separated
    from family (20.9 percent) was the overall leading indicator of
    dissatisfaction with military service. The next leading indicator of
    dissatisfaction was amount of pay (basic) (14.4 percent). Finally, the
    overall quality of Army life (11.3 percent) was the third highest area
    of concern for this population.
                                     ______

                Questions Submitted by Senator Lindsey O. Graham

                     MENTAL HEALTH SELF-ASSESSMENT PROGRAM

        22. Senator Graham. Secretary Chu, last year in our oversight
    hearing, I sought assurance from you and Dr. Winkenwerder that our
    government was doing everything possible to ensure that our wounded,
    having received the best battlefield lifesaving care in the world,
    would not fall through the cracks. Where did we fail and why?
        Dr. Chu. I believe our wounded servicemembers are receiving the
    best battlefield lifesaving care in the world, but issues have been
    raised about the challenges that these servicemembers and their
    families face here at home. It is for this reason that we initiated the
    Military Severely Injured Center in February 2005. Despite our best
    efforts to publicize its services, it is clear we did not reach all we
    should.
        We are pleased that the Independent Review Group and the
    Presidential Task Force have been thorough and quick in their
    assessments of the challenges our servicemembers face, and have made
    recommendations to improve our processes. We look forward to additional
    input from the President's Commission and other ongoing reviews. We are
    working to coordinate our medical, personnel, and disability evaluation
    systems to work in unison to serve the needs of our wounded and ill
    servicemembers.

                              CARE FOR THE WOUNDED

        23. Senator Graham. Dr. Jones, we have heard from wounded soldiers
    and their families who believe that they were prematurely moved to the
    temporary or permanent retired lists as a result of their injuries. Are
    you aware of these concerns?
        Dr. Jones. I am aware of servicemembers and their families who
    believe they were moved too quickly, I am aware of servicemembers, and
    their families who believe it took too long. The important factor in
    this process is communication between the care providers and the
    servicemember and his or her family--communication based on the
    condition of that servicemember and the time the healing will take.
    When there is clear understanding by the servicemember and the family,
    there should not be concern that the action is too quick or too slow.

        24. Senator Graham. Dr. Jones, being placed on the temporary or
    permanent retired lists can affect health care benefits. In the case of
    SGT Eric Edmondson, a soldier from the 172nd Stryker Brigade in Alaska,
    DOD extended him on Active Duty, so he could obtain care at a civilian
    rehabilitation institute that was not available in DOD or the VA, and
    would not have been available to him as a retiree. Why would we
    discriminate in terms of health care between a wounded member extended
    on Active Duty and a member on the temporary retired list, who are both
    fighting to recover from wounds and injuries in war?
        Dr. Jones. Rehabilitation therapy covered under the TRICARE Basic
    Program is available to both Active Duty servicemembers and retirees,
    and includes physician-prescribed therapy to improve, restore, or
    maintain function, or to minimize or prevent deterioration of patient
    function. Rehabilitation therapy under the TRICARE Basic Program must
    be medically necessary, appropriate, and consistent with accepted norms
    for medical practice in the United States. The care must be rendered by
    an authorized provider, necessary to the establishment of a safe and
    effective maintenance program, and must not be custodial or otherwise
    excluded from coverage.
        Covered rehabilitation services for TBI patients may include
    physical, speech, occupational, and behavioral services. Cognitive
    rehabilitation strategies may be integrated into these components of a
    rehabilitation program, and may be covered under the TRICARE Basic
    Program when cognitive rehabilitation is not billed as a distinct and
    separate service. Under the TRICARE Basic Program, cognitive
    rehabilitation defined as ``services that are prescribed specifically
    and uniquely to teach compensatory methods to accomplish tasks which
    rely upon cognitive processes'' are considered unproven and are not
    covered when separately billed as distinct and defined services. To
    provide some comparison, coverage of cognitive rehabilitation by major
    health insurers is mixed. For example, Cigna, Aetna, and UniCare cover
    cognitive rehabilitation for TBI when it is determined to be medically
    necessary. Cigna excludes coverage of cognitive rehabilitation for mild
    TBI. Regence and Blue Cross/Blue Shield consider cognitive
    rehabilitation to be investigational and do not provide coverage for
    it. There is no Medicare National Coverage Determination for cognitive
    rehabilitation for TBI.
        In determining whether a medical treatment has moved from unproven
    to proven, TRICARE reviews reliable evidence, as defined in 32 Code of
    Federal Regulations Part 199. Research study of cognitive
    rehabilitation in neurological conditions including TBI is limited by
    differences between patients, and by variation in the type, frequency,
    duration, and focus of cognitive rehabilitation interventions. The
    TRICARE determination that cognitive rehabilitation for TBI is unproven
    is supported by a 2002 Technical Assessment performed by Blue Cross/
    Blue Shield (updated in 2006), and by a 2004 Technical Assessment by
    Hayes Incorporated also updated in 2006. Medical evidence is dynamic
    and evolving. We know that some care that is considered unproven today
    will in the future achieve the required evidence threshold and become
    covered under the TRICARE Basic Program. Care that is likely to become
    proven is periodically reevaluated to ensure that TRICARE coverage is
    current and consistent with the latest evidence. The DOD has
    commissioned a formal technical assessment of the current scientific
    evidence supporting cognitive rehabilitation intervention for TBI. This
    evaluation will be completed in August 2007. The Department will
    reevaluate its coverage policy for cognitive rehabilitation under the
    TRICARE Basic Program at that time.
        Post-acute, community reentry programs, work integration training,
    and vocational rehabilitation are also excluded from coverage under the
    TRICARE Basic benefit.
        Beneficiaries, including Active Duty servicemembers, may receive
    rehabilitation services in direct or purchased care facilities. Active
    Duty servicemembers may also receive TBI rehabilitation in specialized
    VA treatment centers. In most cases, patients will be referred to a
    rehabilitation facility that has agreed to participate in the TRICARE
    network. Both Active Duty and non-Active Duty beneficiaries may be
    referred for care in a non-network facility when there are no available
    network facilities able to meet the identified medical needs of the
    patient in the area where the patient lives or needs to receive care.
        With the exception of benefit limitations based on Federal statute,
    any restrictions or limitation of the TRICARE Basic Program may be
    waived for Active Duty servicemembers under the Supplemental Health
    Care Program (SHCP) in order to assure adequate availability of health
    care services to Active Duty servicemembers or to keep or make the
    Active Duty servicemembers fit to remain on Active Duty. The Department
    recognizes that as a determination is made that an Active Duty patient
    will not be able to return to Active Duty service, and transition is
    made from Active Duty to retired status, potential coverage differences
    between the SCHP and the TRICARE Basic Benefit may result in
    discontinuity in care for combat-wounded servicemembers. The Department
    is exploring the feasibility of testing strategies for mitigating
    potential disruption in care using demonstration authority.
        In our experience, the VA health benefit is intentionally
    structured to provide robust care to disabled veterans with long-term
    rehabilitation, and other care needs. Specific questions about VA
    coverage of civilian TBI rehabilitation may best be addressed by the
    VA.

                                DOD HEALTH CARE

        25. Senator Graham. Secretary Chu and Dr. Jones, your testimony
    confirms that the budget request assumed savings of nearly $2 billion
    before either the GAO or the DOD health care task force weighs in with
    their findings and recommendations. It is difficult to accept the
    notion that you are sincere about a debate on the future of health care
    benefits when you use the budget ax before that debate has begun. What
    new ideas, if any, have you come up with for increasing efficiencies in
    the DOD health care system before we tax our retirees with higher fees
    and copayments?
        Dr. Chu and Dr. Jones. No, the savings are for the next fiscal year
    (2008). If we can reach agreement with Congress on how to proceed,
    significant savings are possible.
        At the same time, the Military Health System is continuously
    pursuing opportunities to look for efficiencies to reduce the cost of
    health care services. We have worked diligently on improving the
    TRICARE contracts to make them more cost-effective and will continue to
    do so; we have looked at our pharmacy operations and found ways to
    improve our formulary management; and, we have undertaken, along with
    the Service medical departments, a comprehensive look at the military
    and civilian mix of personnel to find those opportunities to address
    our labor costs. Of course, none of this will be sufficient to stem the
    increasing rate of health care costs that the Department faces, and we,
    like others in our government, need to face the challenge of balancing
    the government and beneficiary cost structure.

                         EMPLOYER INCENTIVE FOR TRICARE

        26. Senator Graham. Dr. Jones, last year, at the Department's
    request, Congress enacted legislation that prohibits employers from
    providing financial incentives to military retirees to use TRICARE
    instead of employer-provided health care. One of the unanswered
    questions was how DOD would treat ``cafeteria plans'' under this new
    authority. I want to be clear that our expectation is that DOD should
    implement this authority in a manner that is consistent with Medicare,
    on which the legislation was modeled. Have you consulted with the
    Centers for Medicare and Medicaid Services as we directed in
    implementation of this authority, and will you assure this committee
    that DOD will implement it in the same manner as Medicare?
        Dr. Jones. As enacted, Section 707 extends to TRICARE the same
    prohibition on offering financial or other incentives not to enroll in
    a Group Healthcare Plan (GHP) that currently apply to Medicare under
    section 1862(b)(3)(C) of the Social Security Act (42 United States Code
    1395y(b)(5)). The Department has reviewed the Medicare prohibition on
    GHP incentives, and intends to follow closely those rules in applying
    the comparable prohibition to TRICARE. In general, CMS does not treat
    cash payments to an employee as improper incentive so long as such cash
    payment is based on the employee's election as part of a cafeteria plan
    offered by the employer and that plan comports with section 125 of the
    Internal Revenue Code (IRC). The Department intends to follow closely
    the policies that CMS has instituted to address this issue.
        DOD will soon issue an interim final rule (IFR) to codify all rules
    and governing authorities pertinent to effectuating the requirements of
    Section 707 and will include the treatment of cafeteria plans and other
    employer-provided incentives under the Department's implementation of
    the provision. The IFR will closely track CMS regulations. Employers
    will be prohibited from offering TRICARE-eligible employees financial
    or other benefits not to enroll or to disenroll from the employer's
    group health plan that is or would be primary to TRICARE. Cafeteria
    plans that comport with section 125 of the IRC will be permissible.

                               PHARMACY BENEFITS

        27. Senator Graham. Dr. Jones, last year I thought we had arrived
    at a consensus on the need to make better use of mail-order pharmacy in
    DOD. Have you seen any increase in the rate of use of mail order?
        Dr. Jones. In February 2006, TRICARE Management Activity, along
    with the assistance of our various contracted partners, focused
    multiple educational efforts to encourage the use of our mail-order
    pharmacy point of service by our DOD beneficiaries. Over the last year,
    we have seen a steady increase in the rate of use of mail order. When
    comparing March 2006 to March 2007, we saw an increase from 647,921
    prescriptions to 765,485 prescriptions (15.4 percent). To put this in
    perspective, for the same time period, our prescription workload at the
    MTFs decreased by 3.6 percent and our retail point of service increased
    by 1.2 percent. In March 2006, the mail-order venue comprised 6.2
    percent of all prescriptions filled, whereas in March 2007, this number
    had increased to 7.3 percent. When you normalize the prescriptions to
    an equivalent number of days (in this case 30 days), mail order
    increased 16.4 percent, MTFs decreased 1.8 percent, and retail
    increased 1.7 percent for this same period.
        Another way we measure utilization of the pharmacy benefit across
    our three points of service is the number of beneficiaries that use a
    point of service from month to month. Many of our beneficiaries use
    multiple points of service in a month due to various reasons. When
    comparing March 2006 against March 2007, we see signs of encouragement.
    The number of beneficiaries that utilized mail order increased by 14.8
    percent, whereas the numbers of beneficiaries that utilized the MTFs
    decreased by 4.9 percent and the retail utilizers increased by 7
    percent. Overall, 8.2 percent of our beneficiaries that filled a
    prescription in March 2007 utilized the mail-order point of service
    versus 7.2 percent in March 2006. In addition, since January 2007, the
    number of beneficiaries that have enrolled into the mail-order system
    has averaged over 18,000 per month. We will continue to encourage
    greater use of the home delivery point of service through educational
    campaigns that promote its substantial benefits.

        28. Senator Graham. Dr. Jones, your testimony says that you need
    more help from Congress in making changes in the pharmacy benefit. What
    help are you seeking?
        Dr. Jones. In order to more effectively manage the DOD Pharmacy
    Benefit, assistance in the form of legislative change is needed. These
    changes include:

             End the fiscal year 2007 freeze on adjustments to pharmacy
            co-payments.
             Eliminate the non-formulary cost sharing cap.

                     Current statutes cap the maximum beneficiary cost
                    share for non-formulary drugs. This limits DOD's
                    ability to establish a wider co-payment differential
                    between retail and mail-order points of service. It
                    also limits DOD's ability to incentivize the use of
                    less costly generics and preferred brand name formulary
                    products.

             Index pharmacy cost shares to health care inflation.
             Require exclusive use of TRICARE mail-order or MTFs for
            filling selected generic and brand name maintenance
            medications.

                     The current pharmacy benefit statute requires uniform
                    formulary drugs be generally available at all three
                    points of service.
                     In fiscal year 2006, if the top 10 maintenance
                    medications filled at the retail point of service had
                    been filled through the TRICARE mail-order program or
                    at MTFs, the Department's potential cost avoidance was
                    estimated at over $185 million.

                               DOD-VA TRANSITION

        29. Senator Graham. Secretary Chu and Dr. Jones, as a member of the
    Senate Committee on Veterans Affairs, we hear a lot of talk about
    seamless transition for members from DOD to VA. But based on
    information we hear from military families, this transition misses the
    mark far more than it hits the mark. Why don't DOD and VA have a
    universal single medical exam upon separation from the military, and
    why aren't those exam results available electronically for every
    separating member?
        Dr. Chu and Dr. Jones. The DOD and the VA have been working
    diligently to define the parameters that each Department requires a
    separation physical examination for DOD and a compensation and pension
    physical examination for VA. We are developing an integrated physical
    examination process that would include, for many members, a single
    examination as the servicemember separates from Active Duty and
    registers with the VA for care and, perhaps, disability compensation.
        The complexity of transition of medical care from DOD to VA is
    directly related to the medical status of the individual servicemember.
    Those with more complex and severe medical problems require more than
    just a separation physical examination. Their ``medical exam'' includes
    intense specialty evaluations particular to their medical conditions.
    There is, of course, no such thing as a ``universal single medical
    examination'' suitable for all patients. DOD and VA are acutely focused
    on the coordinated transition of severely wounded and injured
    servicemembers from inpatient care in DOD to inpatient care in VA and
    often back to DOD again. The transition of paper and EHRs is a critical
    part of that, as well as doctor-to-doctor information transfer. VA has
    social workers and disability advisors working in 10 MTFs to help
    expedite the inpatient transfer process to VA Polytrauma Centers.
    Similarly, DOD has Active Duty personnel assigned to help the
    servicemembers and their family members with the transition as they
    arrive at the VA medical centers. The VA social workers in DOD MTFs
    have assisted over 7,600 servicemembers with making outpatient
    appointments at VA's medical facilities as they transition their care
    from DOD to VA.

        30. Senator Graham. Secretary Chu and Dr. Jones, why is DOD still
    unable or unwilling in many cases to share health records with the VA
    electronically?
        Dr. Chu and Dr. Jones. In fact, the DOD and VA share a significant
    amount of health information today. Our electronic sharing began in
    2002, and the Departments are constantly seeking to expand the scope of
    our capabilities. By the end of 2007, DOD will be sharing
    electronically with VA nearly every health record data element
    identified in our VA/DOD JSP for health information transfer. By 2008,
    we will be sharing the remaining health record data elements identified
    in the VA/DOD JSP.
    Currently shared electronic medical record data:
             Inpatient and outpatient laboratory and radiology results,
            allergy data, outpatient pharmacy data, and demographic data
            are viewable by DOD and VA providers on shared patients through
            BHIE from 15 DOD medical centers, 18 hospitals, and over 190
            clinics and all VA facilities.
             Digital radiology images are being electronically transmitted
            from WRAMC and NNMC Bethesda to the Tampa and Richmond VA
            Polytrauma Centers for inpatients being transferred there for
            care.
             Electronic transmission of scanned medical records on
            severely injured patients transferred as inpatients from WRAMC
            to the Tampa and Richmond VA Polytrauma Centers.
             Pre- and PDHAs and PDHRAs for separated servicemembers and
            demobilized Reserve and National Guard members who have
            deployed.
             When a servicemember ends their term in service, DOD
            transmits to VA laboratory results, radiology results,
            outpatient pharmacy data, allergy information, consult reports,
            admission, disposition and transfer information, elements of
            the standard ambulatory data record, and demographic data.
             Discharge Summaries from 5 of the 13 DOD medical centers and
            hospitals using the CIS to document inpatient care are
            available to VA on shared patients.
    Enhancement plans for 2007:
             Expanding the digital radiology image transfer capability to
            include images from WRAMC, NNMC, and BAMC to all four VA
            Polytrauma Centers.
             Expanding the electronic transmission of scanned medical
            records on severely injured patients from WRAMC, NNMC, and BAMC
            to all four VA Polytrauma Centers.
             Making available discharge summaries, operative reports,
            inpatient consults, and histories and physicals for viewing by
            all DOD and VA providers from inpatient data at all 13 DOD
            medical centers and hospitals using CIS.
             Expanding BHIE to include all DOD facilities.
             Making available encounters/clinical notes, procedures, and
            problem lists to DOD and VA providers through BHIE.
             Making available theater outpatient encounters, inpatient and
            outpatient laboratory and radiology results, pharmacy data,
            inpatient encounters to include clinical notes, discharge
            summaries, and operative reports to all DOD and VA providers
            via BHIE.
             Beginning collaboration efforts on a DOD and VA joint
            solution for documentation of inpatient care.
    Enhancement plans for 2008:
             Making available vital sign data, family history, social
            history, other history, and questionnaires/forms to DOD and VA
            providers through BHIE.
             At Landstuhl Regional Medical Center, Germany, making
            available discharge summaries, operative reports, inpatient
            consults and histories, and physicals to VA on shared patients.

                  REDUCTION IN AGE OF RETIREMENT FOR RESERVES

        31. Senator Graham. Lieutenant General Rochelle, Vice Admiral
    Harvey, Lieutenant General Coleman, and Lieutenant General Brady, what
    is your view of the potential impact on recruitment, retention, and
    manpower management of the Reserve and Guard should Congress legislate
    lowering the age of retirement?
        General Rochelle. The Army is continuing to analyze projected
    impact of lowering the retirement age for Reserve component soldiers
    but our initial review of the numbers shows that there are over 4,000
    Army Reserve and over 7,000 ARNG soldiers spread across all specialties
    who would become immediately eligible for retirement once such a change
    was approved. If all of them chose to retire from service there would
    be a significant impact on our Reserve component mission.
        From a manpower management standpoint, reducing the retirement
    eligibility age will decrease the predictability of soldier inventory
    size and increase the potential turbulence when distributing and
    employing the Reserve component. Although the increased amount of time
    between retirement eligibility and pension payout may encourage service
    beyond the eligibility age, there is no data on which to base projected
    inventory.
        From the perspective of recruiting, it is possible that the lower
    retirement eligibility age will be attractive to Reserve component
    soldiers with civilian careers that continue beyond military service.
    At this time it is speculative until the Army surveys soldier's
    attitudes in the present Reserve Force or the population of eligible
    candidates for Service.
        Admiral Harvey. Reducing the age at which a reservist can collect
    retirement pay would inhibit the Navy Reserve's ability to meet force
    management objectives.
        A recent study conducted by RAND found that reducing the age for
    the receipt of retired pay only marginally affects retention, and
    overall reduces the number of years a reservist will serve. This
    proposal would substantially increase costs--funds that could be put to
    better use to improve readiness and purchase much needed equipment.
        Reserve members who volunteer for extended periods of Active Duty
    already receive a substantial increase in their military retired pay
    because of their additional service. Moreover, the Uniformed Services
    Employment and Reemployment Rights Act requires employers to credit,
    for the purpose of qualifying for an annuity under a retirement plan
    offered by the employer, periods of military service as serving with
    the employer. This allows reservists to use the same period of time to
    qualify for a retirement under two separate retirement systems.
        General Coleman. Recruiting does not use retirement as a selling
    point. We sell the intangibles of being a marine: pride of belonging,
    tough, smart, elite, warrior. We feel this would have little to no
    effect on recruiting.
        General Brady. Changes to retirement eligibility for Reserve and
    Guard must be considered in the context of the Total Force, to include
    the effect on recruiting and retention and the larger issue of what it
    does to the growing cost of manpower. Some analysis has indicated that
    lowering the age of retirement would increase overall costs, and there
    could be adverse impacts on retention of highly-experienced airmen.
    This issue requires further study.

                    DOD POLICY RESOLUTION AND IMPLEMENTATION

        32. Senator Graham. Secretary Chu, with respect to the Joint
    Executive Committee (JEC) and injured servicemembers, would you please
    provide a list of policy issues that have been addressed by the JEC and
    the resolutions that have been implemented based on their work?
        Dr. Chu. The JEC has established a Coordinated Transition Working
    Group to examine and make recommendations for improvements to the
    transition process. For example:

             The Joint Seamless Transition Program is a collaborative
            effort between the Services and the VA to facilitate and
            coordinate a more timely receipt of benefits for severely
            injured servicemembers while they are still on Active Duty.
            There are 12 VA social workers and counselors assigned at 10
            MTFs, including WRAMC and the NNMC in Bethesda.
             The Army Liaison/VA PolyTrauma Rehabilitation Center
            Collaboration is a ``Boots on the Ground'' program stood up in
            March 2005 to serve severely injured servicemembers who need a
            long recovery and rehabilitation period. These individuals are
            transferred directly from an MTF to one of the four VA
            PolyTrauma Centers in Richmond, Tampa, Minneapolis, or Palo
            Alto.
             The Transition Assistance Program is an integral part of the
            pre-separation counseling program, in which VA counselors
            advise separating servicemembers on VA health care and
            compensation.
             The Cooperative Separation Physical Examination and Benefits
            Delivery at Discharge (BDD) program addresses the disadvantages
            of the previous procedures, in which servicemembers were
            required to undergo two physical examinations within months of
            each other. Servicemembers can begin the claims process with VA
            up to 180 days prior to separation through VA's BDD program at
            any of the 140 sites where local agreements have been
            established.
             The jointly staffed Military Severely Injured Center,
            established in February 2005, operates a hotline center which
            functions 24 hours a day, 7 days a week. Servicemembers or
            family members can call a toll-free number and speak to a care
            manager, who becomes their primary point of contact over time.
             The DOD has also successfully added the capacity to send
            electronic pre- and PDHA information to the monthly patient
            information being sent to the VA. The PDHRA is also being
            electronically transmitted to VA.
             DOD transmits a monthly list to the VA Office of Seamless
            Transition containing the demographic and contact information,
            and a brief explanation of medical condition of servicemembers
            who have been referred to a Physical Evaluation Board. As of
            the end of fiscal year 2006, DOD has transmitted information on
            over 13,000 individuals.
             The Center for the Intrepid is a jointly staffed state-of-
            the-art outpatient facility to rehabilitate wounded OEF/OIF
            servicemembers and veterans who sustain severe traumatic or
            burn injuries and subsequent functional loss, with resultant
            amputations or limb salvage procedures.
             DOD electronically transmits radiology images for
            servicemembers being transferred from WRAMC and NNMC to all
            four VA Polytrauma Centers. WRAMC currently transmits to the
            Tampa, Richmond, and Palo Alto VA Polytrauma Centers, with
            plans in place to add Minneapolis. NNMC currently transmits to
            the Tampa and Minneapolis VA Polytrauma Centers; testing will
            soon be in place with Richmond and Palo Alto. This capability
            will also be added to BAMC within the next 2 months.

        Scanned medical records are being electronically transmitted from
    WRAMC to three of the four VA Polytrauma Centers, with plans to soon
    add Minneapolis. Next steps are to add this capability to NNMC and
    BAMC.

        33. Senator Graham. Secretary Chu, is there an entity within the
    DOD that is empowered to resolve service-wide policy problems that
    arise on a day-to-day basis with regard to injured servicemembers? If
    so, please explain in what way and how often they communicate with the
    VA office of seamless transition.
        Dr. Chu. Each military Service has specific entities (Army Wounded
    Warrior Program, Navy Safe Harbor Program, Marine Injured Marines for
    Life Program, and Air Force Palace Hart Program) that respond to
    injured servicemembers and their families on problems or day-to-day
    concerns that are raised.
        In addition, the DOD Military Severely Injured Center serves as a
    safety net to these Service programs, providing services for any
    military member. All of these programs communicate regularly and
    frequently with the VA Office of Seamless Transition. There are DOD
    personnel assigned to the VA Office of Seamless Transition to expedite
    this communication.

                   NATIONAL GUARD AND RESERVE FAMILY SUPPORT

        34. Senator Graham. Secretary Chu, in last year's conference
    report, we required DOD to establish new regional centers to increase
    family support for members of the Guard and Reserve. Where do you stand
    on implementation of that authority?
        Dr. Chu. DOD appreciates the support of Congress on this initiative
    and has aggressively begun implementation of the Joint National Guard
    and Reserve Family Assistance Program (Yellow Ribbon Reintegration
    Program). Several governors are on board and support this new program.
    States most interested are Arkansas, Nebraska, Minnesota, Oregon, Ohio,
    Indiana, Hawaii, New Hampshire, Virginia, West Virginia, and Colorado,
    as well as the National Capital Region. We have conducted focus groups
    with high stake individuals representing various State National Guard
    programs, Reserve programs, and Active Duty family programs. We have
    placed a full-time counselor in Minnesota to begin the preliminary
    needs assessment and to begin strengthening and integrating the local
    and State support systems into a comprehensive support community that
    will guide our practice for other locations. We plan to provide mobile
    support services and delivery systems to reach families throughout the
    area. Further, we plan to connect the right resources to the right
    people at the right time through a ``high-tech, high touch'' Web-
    enabled community that will connect military families with each other
    and with supportive resources 24/7 regardless of where they live.

        35. Senator Graham. Secretary Chu, are families of the Guard and
    Reserve better off today than they were 5 years ago?
        Dr. Chu. Yes, Guard and Reserve families are much better off and
    more strongly supported than they were 5 years ago.
        The families of our National Guard and Reserve members who are
    being called upon to support the war on terrorism, homeland defense,
    and other military operations have access to many more Federal, State,
    and local resources than were available 5 years ago.
        The operational tempo for today's National Guard/Reserve is higher
    than at any time since the Korean War. This not only affects the
    member, but also his or her family.
        The mission of National Guard and Reserve family programs is to
    prepare, support, and sustain families when the military member is
    activated and/or deployed. Support is facilitated through education,
    outreach services, and partnerships by leveraging resources, training,
    and constantly capitalizing on new capabilities, concepts, and
    technological advances.
        The National Guard has a strong Joint service family support
    network, organized in each State and territory by the National Guard
    State Family Program Director, and reinforced by a Wing Family Program
    Coordinator at each Air National Guard Wing. The Joint Forces
    Headquarters within each State, territory, and the District of Columbia
    are responsible for coordinating family assistance for all military
    dependents, regardless of service and component, within the State and
    in the geographically dispersed areas beyond the support capability of
    military facilities.
        Vital to a unit commander's family support program are volunteers
    and the Family Readiness Network-unit level Family Readiness Group
    volunteers provide the vitality of the program.
        The Family Assistance Centers (FACs) are regionally based and are
    the primary entry point for all services and assistance that any
    military family member may need during the deployment of the
    servicemember. Services are provided regardless of the sponsor's
    service or component. Services include the preparation (pre-
    deployment), sustainment (actual deployment), and reunion phases
    (reintegration). The primary services provided by the FACs are
    information, referral, outreach, and follow-up to ensure a satisfactory
    result.
        Military Family Life Consultants (MFLCs) are another resource
    available to National Guard and Reserve families. The goal of the MFLC
    is to prevent family distress by providing education and information on
    family dynamics, parent education, available support services, and the
    effects of stress and positive coping mechanisms.
        Military OneSource (www.militaryonesource.com) is a key resource
    available to National Guard/Reserve members and their families.
    Military OneSource supplements existing family programs with a 24-hour,
    7-day a week, toll-free information, and confidential referral
    telephone line and internet/web-based service. It is available at no
    cost to Guard and Reserve members and their families regardless of
    their activation status. Military OneSource provides information
    ranging from everyday practical advice to deployments/reintegration
    issues and will provide referrals to professional civilian counselors
    for assistance.
        Regional Joint Family Support Model. This model is being designed
    as required by the National Defense Authorization Act for Fiscal Year
    2007. Critical components of the model involve building coalitions and
    connecting Federal, State, and local resources and nonprofit
    organizations to support Guard and Reserve families. Best practices
    learned from 22 Inter-Service Family Assistance Committees and the
    Joint Service Family Support Network will guide the planning process.
    Minnesota will serve as a model.

                              TRICARE FOR RESERVES

        36. Senator Graham. Secretary Hall, I have heard from Reserve and
    Guard senior officers that word is slow in getting out about new
    TRICARE benefits that are supposed to be available by October 1, 2007.
    Some even speculate that the Department may be deliberately holding
    back as a way to save money. What are the extent of your activities to
    make sure that every eligible member of the Guard and Reserves receives
    timely information on new TRICARE benefits?
        Secretary Hall. The Department closely monitored the National
    Defense Authorization bill as it evolved throughout the legislative
    cycle last year, and planning began in earnest before the President
    signed it into law on October 17, 2006, with the revised program taking
    effect on October 1, 2007. We have provided information to the Reserve
    component personnel community so they can begin informing their
    members.
        Additionally, the Department is drafting implementing rules and
    regulations, revising departmental policy, modifying the TRICARE
    regional contracts, reprogramming information systems, developing
    informational materials, updating website content, training the Reserve
    personnel community, and training TRICARE customer service personnel.
        Once the infrastructure is fully operational so Reserve and Guard
    members can complete TRS request forms online through the Guard/Reserve
    Web portal, TRICARE regional contractors will be ready to receive and
    process them as well as have customer service staff fully trained to
    assist members. We anticipate reaching this milestone this summer. At
    that time, the Department will formally announce the revised program
    and formally release information to Selected Reserve members so they
    may apply for the benefit if they are interested. Our concern is that
    announcing the program much earlier would only frustrate members who
    may be interested in purchasing their healthcare through the TRS
    program when the application process has not been fully
    operationalized. There is no attempt to conceal this new benefit; and
    in fact many members are already aware of the forthcoming changes to
    the program.

                                  DOD SCHOOLS

        37. Senator Graham. Secretary Chu, the committee has received
    testimony that describes hazardous school environments in DOD schools,
    both in the continental United States and overseas, due to budget cuts.
    Have you directed a survey of DOD school facilities to identify
    conditions in DOD schools?
        Dr. Chu. The DOD Education Activity (DODEA) conducts two different
    types of surveys to determine the condition of school facilities. In
    addition to these surveys, the local installation conducts two
    inspections per year focusing on life safety, physical security,
    sanitation, and bioenvironmental issues identifying all deficiencies
    and their relative priority for repair.

              1. Triennial Facility Survey: This thorough survey reviews
            over 30 building and exterior components (i.e., roofs,
            plumbing, electrical, sidewalks, et cetera.) based upon an up-
            to-date industry standard process. Included is an inspection of
            the condition of existing asbestos in the schools. From this
            assessment, a condition code is calculated and converted to the
            Department's Quality Rating format for reporting, and funding
            prioritization purposes.
              2. Annual Project Development Process: Every year, the school
            administrator, the Area DODEA Facilities Engineer, and a
            representative from the base community engineering office, walk
            through the schools to develop a list of facilities
            requirements. These requirements are prioritized and funded
            based upon their urgency.

        DODEA balances facilities requirements along with core educational
    requirements when developing funding levels. There remains a facilities
    requirements listing, but all safety and security projects are given
    priority.

        38. Senator Graham. Secretary Chu, we have been informed that Fort
    Campbell budget cuts have resulted in reduction in teachers, sharing
    text books, and cancellation of after school activities, in spite of
    increasing enrollments. Are you aware of these concerns, and what steps
    have you taken to improve funding for DOD schools?
        Dr. Chu. The Department recognizes the DODEA's fiscal year 2007
    shortfall, and we are working with DODEA to correct it. A reprogramming
    request for $35 million is forthcoming which will provide the funding
    needed to keep textbook purchases, teacher professional development,
    and other school activities on schedule.
        When developing the fiscal year 2007 President's budget 2 years
    ago, the Department expected savings from the closure of overseas
    schools, but force re-stationing did not keep pace with the plan. The
    reprogramming request referenced above will better align DODEA's
    funding level with its actual requirements.
        The instructional program delivered by DODEA educators remains at
    the highest quality level even under a constrained budget environment.
    There has been no reduction in the number of teachers as a result of
    budget concerns.
        DODEA's fiscal year 2008 President's budget request contains $2.5
    million in additional funding to accommodate the increased enrollment
    at Fort Campbell schools. This funding will go towards temporary
    classrooms and other educational support costs.

                       NATIONAL SECURITY PERSONNEL SYSTEM

        39. Senator Graham. Secretary Chu, the committee is concerned that
    the Services are being forced to absorb training and implementation
    costs associated with implementation of National Security Personnel
    System (NSPS), and that the Department has not requested new funds to
    ensure effective implementation. What visibility do you have into the
    actual implementation costs of NSPS within the components?
        Dr. Chu. The Department is funding the NSPS development,
    implementation, and life cycle maintenance costs within the DOD's top
    line. DOD policy requires the components to track NSPS implementation
    costs. Reporting occurs in the following categories:

             Design and Implementation
             Training Development and Delivery
             Design of Modifications to the DOD automated Human Resources
            System
             Program Evaluation
             Program Office Operations

        Components track costs within their official accounting systems and
    report costs to the Program Executive Office NSPS on a quarterly basis.
    The following costs have been reported:

                            [In millions of dollars]
    ------------------------------------------------------------------------
                                                        Fiscal      Fiscal
                                                       Year 2005   Year 2006
    ------------------------------------------------------------------------
    Design and Implementation.......................       7.098       7.713
    Training Development and Delivery...............       9.767      21.820
    Modifications to DOD HR System..................       4.345       8.167
    Program Evaluation..............................        .303       1.131
    Program Office Operations.......................      10.993      21.183
                                                     -----------------------
      Total Implementation Costs....................      32.506      60.014
    ------------------------------------------------------------------------

        Collection of NSPS Implementation costs for fiscal year 2007 is
    ongoing.

        40. Senator Graham. Secretary Chu, what kinds of training and
    professional development needed for a high quality workforce are being
    sacrificed as components absorb the cost of implementation of NSPS?
        Dr. Chu. A portion of component training dollars has traditionally
    been set aside to address new program requirements. NSPS is a new
    program and workforce training is critical if the DOD employees are
    going to successfully adapt to the new system. As such, DOD managers
    and supervisors are ensuring NSPS training is given equal focus and
    attention with other mission related training priorities. We are
    committed to funding delivery of training without sacrificing other
    required programs.
        NSPS implementation supports and encourages a high performing
    workforce and organizations are providing even more opportunities for
    employees at all levels to learn new skills and behaviors. Overall, the
    intensified focus on the technical as well as the behavioral training
    needed to fully succeed in the workplace is a win-win for employees and
    managers.

        41. Senator Graham. Lieutenant General Rochelle, Vice Admiral
    Harvey, Lieutenant General Coleman, and Lieutenant General Brady,
    employee buy-in is the most important factor in the success of NSPS.
    What are you doing to track the outcome of the initial implementation
    of NSPS so that we can honestly tell employees whether they are better
    off under NSPS?
        General Rochelle. The NSPS is a significant change for employees
    and supervisors. We did not expect rapid acceptance with initial
    implementation or after a single performance rating cycle. It will take
    more experience than we have thus far among the relatively small Spiral
    1.1 workforce to see effects. The DOD is centrally monitoring component
    implementation activities and collecting data about workforce attitudes
    and personnel actions under NSPS. We look forward in the coming months
    to seeing the results of the Department-wide attitude survey conducted
    late last year. Army's first organization, the Civilian Human Resources
    Agency, some 2,400 employees, converted last April. Preliminary results
    on the first payout under NSPS indicate supervisors made distinctions
    in performance and rewarded employees based on their contributions.
        Admiral Harvey. The DOD and Department of the Navy are collecting
    and monitoring a large variety of information to determine if the
    desired outcomes and guiding principles identified in the Requirements
    Document were met. Information gathering will include statistics, and
    will be supplemented by surveys that allow employees, supervisors, and
    leadership to comment on the NSPS processes and implementation.
        These first surveys and statistics will serve as initial data
    points for a baseline evaluation that is timely communicated to the
    workforce. It will provide an analysis of employees' performance
    ratings to salary growth, and indicators on how the workforce is faring
    under NSPS. In addition, the evaluations will address other matters
    such as:

             Retention and loss rates for higher and lower performers.
             Usage patterns for NSPS hiring, assignment, and conversion
            authorities.
             Equity analyses of performance, pay, and selection patterns.
             Supervisor opinions about pay flexibility and candidate
            quality.
             Employee opinions about performance expectations, feedback,
            and links to organization goals and rewards.
             Comparison of average compensation increases under NSPS to
            estimated increases had employees not converted to NSPS.

        It will take more than one performance cycle for us to truly
    evaluate how well NSPS is working and where adjustments may be needed
    for long-term sustenance.
        General Coleman. In conjunction with the DOD and Department of the
    Navy evaluation plans, the Marine Corps will be tracking and collecting
    a large variety of information from which detailed assessments will be
    made of the NSPS initiatives to determine if they provide the desired
    outcomes and meet the guiding principles set forth in its requirements
    document. Evaluation is a long-term activity to ensure there is
    sufficient experience with the system before judgments are made. Short-
    term analyses let DOD and the Navy monitor implementation and make
    minor adjustments.
        The first surveys and the first statistics serve as initial data
    points; it will take more than one performance cycle for us to truly
    evaluate how well NSPS is working and where adjustments will be needed
    for long-term sustenance. In the meantime, we will collect data and be
    prepared to make a comprehensive evaluation. This evaluation will
    include the relationship of employees' performance ratings to salary
    growth and whether they are better off under NSPS as well as other
    matters such as:

             Retention and loss rates for higher and lower performers.
             Usage patterns for NSPS hiring, assignment, and
            conversionauthorities.
             Equity analyses of performance, pay, and selection patterns.
             Supervisor opinions about pay flexibility and candidate
            quality.
             Employee opinions about performance expectations, feedback,
            and links to organization goals and rewards.
             Comparison of average compensation increases under NSPS to
            estimated increases had employees not converted to NSPS.

        General Brady. NSPS is a major cultural change for DOD and it will
    take more than one performance cycle to truly evaluate how well NSPS is
    working and where adjustments will be needed for long-term sustainment.
    Employee buy-in evolves over time as the workforce sees NSPS working as
    designed. As NSPS is embedded in our management processes and the
    workforce gains greater experience and understanding of it we expect to
    see an upward trend in acceptance. We are measuring employee acceptance
    via attitude surveys, focus groups, and targeted interviews. We are
    tracking a variety of workforce and financial data and publicizing such
    data for employees' information.

                          ARMED FORCES RETIREMENT HOME

        42. Senator Graham. Secretary Chu, the committee is deeply
    concerned about continuing reports of quality of care problems at the
    Armed Forces Retirement Home (AFRH). The Department's stance is
    defensive. Timothy Cox, the Chief Operating Officer for the AFRH, said
    that the accusations are ``without merit,'' and he has blasted the GAO
    for making ``inflammatory allegations'' without investigating them. We
    expect a thorough and independent review of quality of care issues at
    the AFRH. What are you doing to achieve that?
        Dr. Chu. The Comptroller General noted in his letter dated March
    19, 2007, that the allegations by unnamed ``health care professionals''
    were not conclusions or findings resulting from a GAO investigation.
    Nevertheless, the Department has oversight responsibility for AFRH and
    takes these allegations very seriously. Michael Dominguez, Principal
    Deputy Under Secretary of Defense for Personnel and Readiness, assumed
    personal responsibility for investigating them. This is an update on
    actions that have been taken to date.
        On March 20, Mr. Dominguez asked the Assistant Secretary of Defense
    for Health Affairs to assemble an experienced medical team to conduct
    an unannounced inspection, within 24 hours, to identify and fix any
    medical care practices deemed to be substandard, deficient, or that
    would jeopardize resident health care. He directed Tim Cox, the Chief
    Operating Officer, to provide full access to AFRH facilities, staff,
    records, and the residents. On March 21, a four-person medical team
    from the DOD's TRICARE Management Activity conducted this unannounced
    inspection beginning at 9 a.m. We received their report on March 22.
    During their inspection, the team could find no evidence to corroborate
    inferior care; the facility appeared clean and well run with well
    cared-for residents. The team suggested that the allegations will
    likely be discredited, except for that of a maggot-infested pressure
    sore--AFRH investigated this one incident last year, and appropriate
    disciplinary action was taken and properly documented.
        The medical team also recommended a more thorough and detailed
    inspection take place as soon as possible. The Department then notified
    the Joint Commission on Accreditation of Healthcare Organizations
    (JCAHO)--an independent non-governmental organization--and welcomed a
    no-notice review by them. JCAHO arrived unannounced on March 23 to
    conduct an independent review. We received their report on April 9.
    There were four unrelated findings but the JCAHO surveyor did not
    substantiate any of the serious allegations listed in the GAO letter.
        Also on March 21, in cooperation with DOD Public Affairs,
    interested news media were given access to AFRH. Staff were made
    available for walking tours and interviews with Tim Cox, Chief
    Operating Officer, as well as with residents. We are mindful that AFRH
    is our residents' home and have tried to be as unobtrusive as possible.
        On March 22, Mr. Dominguez sent a letter to each resident and
    immediate family members/concerned parties informing them of the
    allegations and actions taken. He reminded them of the AFRH complaint
    hotline--1-866-769-2068--and encouraged use of this anonymous reporting
    mechanism to register concerns and noted that he personally reviews
    these calls. To date, the hotline has not received any calls related to
    the allegations.
        On March 23, Mr. Dominguez and Leslye A. Arsht, the Deputy Under
    Secretary of Defense for Military Community and Family Policy, along
    with Phil Grone, the Deputy Under Secretary of Defense for
    Installations and Environment, conducted an on-site review at AFRH with
    professional staff members from the House and Senate Armed Services
    Committees and House Veterans Affairs Committee. We are following up on
    the feedback from the congressional staff, however, we saw no evidence
    of the substandard conditions alleged in the GAO letter, and we found
    the facilities and grounds to be clean and well-maintained.
        Finally, we asked the DOD's Inspector General (IG) to conduct
    follow-up interviews with the health care professionals who made the
    initial allegations to better determine their source. In an April 19,
    2007, briefing, the Acting Deputy Director, DOD IG reported that the
    health care professionals had repeated their allegations to the IG
    investigators, but again they have not been substantiated, and the DOD
    IG is continuing the investigation. Simultaneously, Mr. Dominguez
    tasked his staff to identify and compare standard business practices
    related to the medical and nonmedical allegations. He is also awaiting
    a recommendation from Tim Cox, Chief Operating Officer, AFRH, as to
    whether to seek additional independent accreditation/review (similar to
    JCAHO) for independent and assisted living, and will expedite this
    decision.
        Based on our preliminary review, we do not see a crisis at AFRH,
    and most of the allegations that were made to the GAO had been surfaced
    before. In an old historic facility such as AFRH there are many
    structural problems we need to work on, and plans are in place to move
    forward on these. I will provide updates as our investigation unfolds
    and our follow-on recommendations.
        We are grateful for our veterans' dedicated service to our Nation
    and can assure you we put their safety, health, and security first and
    foremost.

                   HEALTH CARE BENEFIT CHANGES UNDER TRICARE

        43. Senator Graham. Lieutenant General Rochelle, Vice Admiral
    Harvey, Lieutenant General Coleman, and Lieutenant General Brady, last
    year the Vice Chiefs of Staff of each Service testified in support of
    Secretary Rumsfeld's plan to rapidly increase TRICARE fees for military
    retirees. Have challenges in recruitment and retention, or the problems
    at WRAMC, caused you to rethink the wisdom of making health care
    entitlements more expensive for retirees? If so, why? If not, why not?
        General Rochelle. The growing costs of health care and the TRICARE
    program continue to challenge the DOD. Important changes are needed to
    sustain TRICARE as a superior healthcare program. DOD healthcare costs
    have nearly doubled in the past few years--from $8.6 billion in fiscal
    year 2001 to $15.9 billion (requested) in fiscal year 2008. This growth
    is primarily do to unfinanced expansion of health benefits for all
    beneficiaries; advances in medical practice, including new technologies
    and pharmaceuticals; and, healthcare inflation. Additionally, the DOD
    will contribute $10.9 billion to the Medicare-eligible Retiree
    Healthcare Accrual Fund in fiscal year 2008 to pay for future retirees'
    healthcare within the TRICARE program. Note that most of DOD's health
    spending is not for Active Duty military and their families or for
    deployed medical operations. These beneficiaries generally rely on DOD
    as the sole provider of healthcare. Most of our health spending is for
    health benefits for military retirees and their beneficiaries.
        To address the projected growth in healthcare spending, the
    administration proposed increasing fees on retirees in fiscal year
    2007. Although these proposals were rejected by Congress, health care
    spending will continue to consume a larger portion of the Department's
    total obligation authority unless action is taken to address the
    expansion of health benefits. We support DOD's ongoing dialogue with
    Congress to ensure continuation of our superior military healthcare
    benefit. The interim report from the DOD Task Force on the Future of
    Military Health care is due May 31, 2007; the Task Force' work is to be
    completed in December 2007. We, along with others within the
    Department, await the interim Task Force report, which will address the
    issue of TRICARE cost-sharing. This will serve as a basis for our
    continued work with Congress on how TRICARE benefit changes should be
    shaped.
        Admiral Harvey. The DOD is firmly committed to protecting the
    health of our servicemembers and to providing world-class healthcare to
    its more than 9 million beneficiaries.
        However, the Department is challenged by the growing costs of the
    Military Healthcare System (MHS), requiring important changes in
    TRICARE to sustain a long-term superior benefit. This will require the
    help and support of Congress. My understanding is that the Department
    is awaiting receipt of an interim report of the DOD Task Force on the
    Future of Military Healthcare as a basis for dialogue with Congress on
    what shape these changes will take.
        DOD leadership remains resolute in the commitment to place the
    health benefit program on a sound fiscal footing to preclude the
    otherwise inevitable consequences. Costs have more than doubled in 6
    years--from $19 billion in fiscal year 2001, to $39 billion in fiscal
    year 2007--despite MHS management actions to make the system more
    efficient. DOD projects program costs to taxpayers of at least $64
    billion by 2015. Further, healthcare costs may be expected to consume a
    growing slice of the Department's budget, reaching 12 percent by 2015
    (as compared to 4.5 percent in 1990).
        General Coleman. The Military Health System provides the Nation's
    best health benefit program for those who continue to wear the uniform,
    retirees, and their families. TRICARE is the ``gold standard'' health
    care benefit, which must be sustained. Healthcare is not without cost.
    Military Health Program costs have doubled from $19 billion in fiscal
    year 2001 to $38 billion in fiscal year 2006, representing an increase
    from 6 percent to 8 percent of total DOD spending. Estimates indicate
    these costs could reach $64 billion in 2015, more than 12 percent of
    the DOD budget, an increase that is unsustainable without major impacts
    in other areas of current and future force readiness. Such growth is
    clearly faster than overall budget growth and could affect future
    investments in manpower end strength, readiness, warfighting and
    infrastructure. It is critically important that we place the health
    program on a sound fiscal foundation for the long-term, so that we can
    sustain the benefit and the vital needs of our military to recruit,
    train, equip, and protect our servicemembers who support daily our
    national security responsibilities throughout the world.
        However, we ``cannot/should not'' break our promises to our
    ``retirees'' with respect to ``their perceived/promised'' health care
    benefit. There are approximately 76,000 retired Active Duty and Reserve
    Marines under the age of 65 who potentially would be affected by
    increased premiums and shoulder an ``unfair'' burden.
        We are also concerned about the impact of increased TRICARE fees on
    our ``future'' retirees, many of whom we are now trying to retain as
    the Marine Corps grows to 202,000. One of the primary reasons for
    reenlisting is ``quality health care'' and increasing premiums for
    retirees will have a negative impact on current reenlistments.
    Additionally, the military's life-time medical benefits, as well as the
    military retirement system, are strong motivational forces for the
    thousands of young men and women who join our ranks each year. We
    should not lose sight of these aspects. Today's high operational tempo/
    wartime environment would be a poor time to ``devalue'' the retirement
    benefits for our current or future retirees and send a negative signal
    about the value of their retirement benefit.
        General Brady. Challenges in recruitment and retention or the
    problems at WRAMC are unrelated to and should not be directly linked to
    any effort focused on raising premiums for health care entitlements.
    The fiscal year 2008 budget request assumes savings of $2.2 billion
    from reform proposals (as projected last year for fiscal year 2008); we
    await the interim report of the DPD Task Force on the Future of
    Military Health Care as a basis for dialogue with Congress on how these
    should be shaped.

                  REDUCTION IN AGE OF RETIREMENT FOR RESERVES

        44. Senator Graham. Lieutenant General Rochelle, Vice Admiral
    Harvey, Lieutenant General Coleman, and Lieutenant General Brady, what
    is your view of the potential impact on recruitment, retention, and
    manpower management the Reserve and Guard of lowering the age of
    retirement?
        General Rochelle. The Army is continuing to analyze projected
    impact of lowering the retirement age for Reserve component soldiers
    but our initial review of the numbers shows that there are over 4,000
    Army Reserve and over 7,000 ARNG soldiers spread across all specialties
    who would become immediately eligible for retirement once such a change
    was approved. If all of them chose to retire from service there would
    be a significant impact on our Reserve component mission.
        From a manpower management standpoint, reducing the retirement
    eligibility age will decrease the predictability of soldier inventory
    size and hence increase the potential turbulence when distributing and
    employing the Reserve component. Although the increased amount of time
    between retirement eligibility and pension payout may encourage service
    beyond the eligibility age, there is no data on which to base projected
    inventory.
        From the perspective of recruiting, it is possible that the lower
    retirement eligibility age will be attractive to Reserve component
    soldiers who tend to parallel civilian careers that continue beyond
    military Service. That possibility will remain speculative until we
    have been able to survey soldier attitudes in the present Reserve Force
    or the population of eligible candidates for service.
        Admiral Harvey. A recent study conducted by RAND found that
    reducing the age for the receipt of retired pay only marginally affects
    retention, and overall reduces the number of years a reservist will
    serve. This proposal would substantially increase costs--funds that
    could be put to better use to improve readiness and purchase much
    needed equipment.
        Reserve members who volunteer for extended periods of Active Duty
    already receive a substantial increase in their military retired pay
    because of their additional service. Moreover, the Uniformed Services
    Employment and Reemployment Rights Act requires employers to credit,
    for the purpose of qualifying for an annuity under a retirement plan
    offered by the employer, periods of military service as serving with
    the employer. This allows reservists to use the same period of time to
    qualify for a retirement under two separate retirement systems.
        General Coleman. The Marine Corps has reviewed several proposals,
    both internal and external, to reduce the Reserve retirement age. The
    most recent was April 2006 under S. 2449 in the 109th Congress. The
    Marine Corps did not concur with the proposal to reduce the Reserve
    retirement age to 55 based on the cost, impact of the force, and lack
    of evidence that the proposal would have on shaping the force.
        At the time of that proposal, the DOD projected cost would be $600
    million in the first year and $6.6 billion over the next 10 years. If
    health care entitlements were included with the decrease in retirement
    age, the costs would increase to $900 million and $10.6 billion
    respectively according to the 2004 DOD Report to Congress titled
    Reserve Personnel Compensation Review.
        Proposals that gradually reduce the retirement age for service in
    support of contingency operations have certain merit and
    philosophically support the continuum of service concept. However,
    further study is required. While it may serve as a retention incentive,
    it might also negatively affect promotion opportunities of mid-career
    personnel.
        Currently, there is no evidence that the proposals that call for
    the lowering the retirement age to 55 will help shape the force or
    increase recruitment. In fact, during recent years, attrition has
    remained below historic norms.
        General Brady. Changes to retirement eligibility for Reserve and
    Guard must be considered in the context of the Total Force, to include
    the effect on recruiting and retention and the larger issue of what it
    does to the growing cost of manpower. Some analysis has indicated that
    lowering the age of retirement would increase overall costs, and there
    could be adverse impacts on retention of highly-experienced airmen.
    This issue requires further study.

                     RESTRICTED REPORTING OF SEXUAL ASSAULT

        45. Senator Graham. Lieutenant General Rochelle, Vice Admiral
    Harvey, Lieutenant General Coleman, and Lieutenant General Brady, the
    committee has heard of instances in which State law may limit
    implementation of the DOD policy on restricted reporting of sexual
    assault. Are you aware of any instance in which State law governing
    mandatory reporting of sexual assault has placed military personnel at
    a disadvantage in not being able to exercise the option of restricted
    reporting as permitted under DOD policy?
        General Rochelle. The Army is not aware of any specific instance
    where a soldier was unable to exercise the restricted reporting option
    due to a State law which required mandatory reporting. However, the
    Army is aware that some States do have mandatory reporting requirements
    for rape, and/or injuries that may be sustained in conjunction with a
    sexual assault. California enacted one of the most restrictive of these
    State laws. California law requires medical personnel who treat a rape
    victim to make a report to their local law enforcement agency. A legal
    review of the California law by the DOD General Counsel office
    determined that it does apply to health care providers who are working
    in DOD military medical treatment facilities in that State.
        The California law, and other less stringent State laws, may
    prevent servicemembers from exercising their restricted reporting
    option. One of the means used throughout DOD to mitigate this issue is
    the use of memoranda of agreements (MOA) between our installation and
    local civilian medical facilities, law enforcement agencies, and rape
    crisis centers. In some States where the reporting requirements are
    less stringent, these MOAs are sufficient. However, local MOA either
    may not be sufficient to mitigate the strict California and similar
    statutes or local authorities may decline to enter into MOAs.
        Admiral Harvey. Commander, Navy Installations Command advises that
    the Navy is unaware of specific members who were placed at a
    disadvantage in not being able to exercise the restricted reporting
    option. However, Navy restricted reporting data suggests that State
    mandatory reporting laws by medical providers may have a suppressive
    effect upon reporting by Active Duty victims who might otherwise make
    restricted reports under DOD policy. For example, the rates of
    restricted reporting per 10,000 Navy members for CY06 were 1.8 reports
    in Virginia, in contrast with 0.13 reports in California. Analysis of
    State laws conducted for the DOD Sexual Assault Prevention and Response
    Office indicated that California law requires medical providers to
    report treatment of any physical injury resulting from assaultive
    conduct to law enforcement, in contrast with Virginia, where medical
    providers are required to report only treatment of wounds inflicted by
    specific weapons.
        General Coleman. The majority of the States have various degrees of
    statutory reporting requirements and there is potential for medical
    personnel to interpret these statutes to require sexual assault
    reporting to local law enforcement. Three States (Massachusetts,
    California, and Kentucky) have laws which mandate sexual assault
    reporting. The California law is of particular concern to the Marine
    Corps in view of the number of Marine Corps installations in the State.
    California law eliminates restricted reporting and, therefore,
    disadvantages Marine Corps personnel. California Penal Code requires
    medical personnel to report sexual assault to local law enforcement
    personnel as a condition to legally practice medicine. Accordingly,
    victims may not seek medical care in California without having their
    case reported to law enforcement. Other States that could present an
    obstacle to restricted reporting are Florida, Georgia, Ohio, Michigan,
    New Hampshire, and Pennsylvania. In these States, if a victim suffers
    non-accidental or intentional injuries in addition to the sexual
    assault, medical personnel must report the incident to law enforcement.
    However, we are not aware of any case where Marine Corps personnel
    could not take advantage of restricted reporting. We recommend
    coordination with DOD's Sexual Assault Prevention and Response Office
    for information on the individual States' reporting requirements.
        General Brady. A conflict can arise between State statutes and the
    restricted reporting option when it is necessary to have a SAFE
    conducted in a civilian facility off the installation. While restricted
    reporting offers the option to have a SAFE completed without command
    and law enforcement being notified, the civilian hospital conducting
    the SAFE must comply with any State reporting statutes. These statutes
    can require law enforcement be notified when specified conditions
    exist. Several major commands have reported instances where this
    conflict has occurred.
        Laws that require medical personnel to report that they have
    treated a competent, adult sexual assault victim fall into four
    categories: (1) laws that require medical personnel to report treatment
    of rape victims; (2) laws that require reporting of non-accidental or
    intentional injuries, that may include rape; (3) laws that require
    reporting certain specified injuries, such as injuries caused by
    weapons, that may pertain to sexual assault victims; and (4) laws
    regarding SAFEs that may also contain reporting requirements. In
    addition, there are State licensing requirements for medical
    professionals which may contain reporting obligations.
        Our Sexual Assault Prevention and Response professionals have been
    and will continue to partner with Air Force legal and medical personnel
    on how best to resolve this important issue. In some States, resolution
    of the conflict between the State reporting requirements and restricted
    reporting has not been possible. If that occurs, we ensure the victim
    is fully advised of the situation so that the victim can make an
    informed decision as to whether to have a SAFE completed.

                   CIVILIAN CONVERSIONS OF MEDICAL PERSONNEL

        46. Senator Graham. Lieutenant General Rochelle, Vice Admiral
    Harvey, Lieutenant General Coleman, and Lieutenant General Brady, in
    spite of certifications provided by each Service Secretary that
    civilian conversions have not eroded the quality of military health
    care, we continue to hear that such conversions result in unfilled
    medical positions. Major General Pollack, Acting Surgeon General of the
    Army, recently informed the committee that the inability to hire
    civilian medical personnel for converted military billets at WRAMC
    contributed substantially to staffing shortages at WRAMC. Is it time to
    stop and reassess the validity of this process for medical personnel?
        General Rochelle. We do not want to stop the backfilling of
    military positions with civilians when operational demand requires us
    to realign the military. However, we recognize the need to reassess our
    plans and programs and are currently re-evaluating select medical
    military-civilian conversions. Military-civilian conversions play a key
    role in increasing Army operational capabilities. Backfilling medical
    positions in the Institutional Army with civilians and realigning the
    military positions to the operational Army affects dwell times and
    helps reduce stress on the force. Eliminating military-civilian
    conversions as a tool for retaining civilian capability in our medical
    facilities when military are realigned to meet operational requirements
    as required by operational demand could lead to shortfalls in medical
    capacity. We have, to date, filled 30 converted positions for fiscal
    year 2007. We currently have 41 unfilled nursing assistant and health
    aid technician positions, for which we have commitments to hire for 17.
    We are taking steps to fill the remaining positions by expanding our
    use of recruitment, retention, and relocation incentives. The average
    fill time for converted military positions at WRAMC has been 70 days in
    administrative, nursing, dental assistant, operating room technician,
    medical supply specialist, and engineering technician positions.
        Admiral Harvey and General Coleman. Navy has certified that
    continuing conversions planned for fiscal year 2005 and fiscal year
    2006 will not adversely affect cost, quality, or access. To date,
    military to civilian conversion success has been 84 percent for fiscal
    year 2005 and 53 percent for fiscal year 2006. Navy cannot forecast,
    with confidence, the future market of health professionals. As the
    medical labor market tightens, we anticipate hiring will become
    increasingly difficult.
        Since 2005, Navy has experienced difficulty in hiring qualified
    individuals for certain specialties such as dentists, dental
    assistants, nurses, lab technicians, and pharmacists. The market for
    these specialties is especially constrained. Some medical specialties,
    such as radiology, are expensive, while others include mid- to low-
    paying jobs in which the applicant pool cannot support the increasing
    demand. Failed security screenings, physical disqualifications, and
    hiring lag issues have all exacerbated the situation. Hiring into some
    specialties may become so difficult in the civilian market that
    reconsideration of some conversions may become necessary.
        Navy is constantly reassessing its military-to-civilian conversion
    process. We have adopted a forward looking approach to investigating,
    requesting, and implementing hiring flexibilities to include title 38,
    U.S.C., special hire, and direct hire authorities. Navy is currently
    reviewing hiring policies and procedures in an attempt to streamline
    the process. If the labor pool is available, cost effective, and does
    not adversely impact operational readiness or quality or access to
    healthcare, we would plan on continuing to convert positions.
        General Brady. As of March 31, 2007, the Air Force Medical Service
    (AFMS) has filled 245 of 403 positions converted in fiscal year 2006
    and 230 of 813 positions converted in fiscal year 2007. An additional
    963 positions will be converted in fiscal year 2008. The AFMS has the
    following concerns regarding the process:

             A hiring freeze during fiscal year 2006 negatively impacted
            AFMS ability to fully execute military-to-civilian conversions.
             The ability to execute military to civilian conversions is
            dependent on the location of conversion and availability of
            potential candidates.
             Under-execution causes decreased production yielding less
            efficient MTFs.

        Given these concerns, we do not believe additional military to
    civilian conversions should be pursued until we can accurately assess
    the effectiveness of the process. The AFMS is requesting the Air Force
    Audit Agency perform an audit of the fiscal year 2006-fiscal year 2008
    Enhanced Planning Process to review and assess effectiveness of
    recruitment, ability to access interested and available candidates;
    timeliness of backfilling vacancy after initial military to civilian
    hire; access to care, and net savings (MILPERS versus O&M Civilian Pay)
    at hospitals, medical centers, and designated clinics.

        47. Senator Graham. Lieutenant General Rochelle, Vice Admiral
    Harvey, Lieutenant General Coleman, and Lieutenant General Brady, how
    close to reality for the medical professions is Dr. Chu's testimony
    that ``the average costs of civilians are less than the average costs
    of military?''
        General Rochelle. Analysis conducted during the Department's most
    recent Medical Readiness Review (MRR) showed that the conversion of
    11,949 medical military billets to civilian performance (to include
    1,288 physicians, 794 dentists, 837 nurses, and 840 other medical
    officers) would produce average savings of $22,900 per year short-term,
    and $30,100 per year long-term, for each billet converted. The average
    savings of a civilian replacement for other Government agencies is
    $4,500 per year short-term and increases to $20,700 per year long-term.
    The analysis includes a full accounting of the costs of military and
    civilian medical personnel that has both: short-term costs such as pay,
    health insurance, retirement, education, training, and recruitment; and
    deferred costs such as health benefits, separation pay, and
    unemployment and survivor benefits. In their 2006 report on ``Military
    Personnel: Military Departments Need to Ensure That Full Costs of
    Converting Military Health Care Positions to Civilian Positions Are
    Reported to Congress,'' the GAO endorsed the Department's approach for
    costing military to civilian conversions. However, it is important to
    note that the Army is doing military-to-civilian conversions to
    increase operational capability.
        Admiral Harvey and General Coleman. Based on the hiring experience
    in fiscal years 2005 and 2006, Navy Medicine found that the conversions
    did not increase cost overall and access to care has stayed within
    standards.
        The issue with military-to-civilian conversions is not as much a
    matter of pricing accuracy as it is rather the availability of labor in
    the local markets where Navy Medicine is hiring. Between 2005 and
    present, Navy Medicine has experienced difficulty in hiring medical
    professionals in certain specialties, to include dentists, dental
    assistants, nurses, lab technicians, and pharmacists. The market for
    these specialties is especially constrained. Other converted positions
    include mid-to-low paying jobs and we are finding that the labor supply
    cannot support the increasing labor demand. Other aspects such as
    failed security screenings, physical qualifications, and hiring lags
    contribute to the hiring challenges.
        General Brady. In general terms this may be true for enlisted
    specialties, nonprofessionals, and paraprofessionals. However, for
    professional capabilities and skill sets (i.e., Physicians, Nurses, and
    Dentists) civilians may actually be more expensive particularly in high
    cost markets (Seattle, Washington D.C., Bay Area, Denver) or in low
    density specialties areas. The ability to execute military to civilian
    conversions is also dependent on the location of conversion and
    availability of potential candidates.

              DRUG AND ALCOHOL USE BY SOLDIERS IN MEDICAL HOLDOVER

        48. Senator Graham. Dr. Jones, what are the issues of drug use by
    soldiers in medical holdover?
        Dr. Jones. Soldiers in medical holdover are subject to the same
    regulations as all military members on Active Duty. Illegal drug use is
    not an accepted behavior. Routine random urine drug screening and
    command-directed urine drug screening programs are in place.

        49. Senator Graham. Dr. Jones, what are the issues of alcohol abuse
    by soldiers in medical holdover?
        Dr. Jones. Alcohol abuse by servicemembers on Active Duty,
    including those in medical holdover, is a DOD concern because it may
    affect the health and safety of those individuals who abuse alcohol.
    Programs to deglamorize alcohol use and educate servicemembers to seek
    care and counseling for alcohol abuse are prominent in each Service,
    installation, and unit.

        50. Senator Graham. Dr. Jones, regarding use of illegal drugs, is
    there a drug problem at WRAMC?
        Dr. Jones. Although any wrongful use of illegal substances is
    problematic, the overall statistics for the Medical Hold (MH) and
    Medical Holdover (MHO) group of servicemembers are about the same as
    the rest of the Army. In fiscal year 2006, the combined data collected
    from MH and MHO was:

              Total Samples Collected: 773
              Total Positive Results: 14
              Percentage Positive: 1.8 percent

        The comparable statistic for total Army was 1.7 percent.
    Statistically, the MH and MHO positive rate for illicit drugs was
    essentially a match to the total Army rate in fiscal year 2006.
        The fiscal year 2007 combined data shows that the positive rate was
    cut in half for MH and MHO during the first half of the fiscal year.

              Total Samples Collected October 2006 through March 2007: 353
              Total Positives: 3
              Percentage Positive: 0.8 percent

        The Army Substance Abuse Program at WRAMC attributes the reduction
    in positive testing results to the increased vigor of the Medical
    Center Brigade testing program. Deterrence of drug usage in response to
    an increased possibility of detection through random drug testing is a
    well known outcome in Army drug testing programs. The Army Substance
    Abuse Program at WRAMC provides a number of services to support the MH
    and MHO soldiers.

             A quality Outpatient Treatment Program for substance abuse
            disorders
             Referral as needed to higher levels of care in the military
            and civilian communities
             Coordination with Inpatient Psychiatric services to support
            servicemembers who have both a substance problem and
            psychiatric issues
             Close coordination with commanders to manage servicemembers
            who are enrolled in the substance abuse treatment program
             Alcohol and Drug Awareness Education Classes for MH and MHO
            staff and patients on request
             Participation in the orientation of MH and MHO soldiers
             Installation campaigns which focus on alcohol and drug abuse

        51. Senator Graham. Dr. Jones, how many soldiers have tested
    positive for using illegal drugs while in a medical hold or medical
    holdover status?
        Dr. Jones. Soldiers in medical hold and medical holdover are
    subject to the same regulations as all military members on Active Duty.
    Illegal drug use is not an accepted behavior. Routine random urine drug
    screening and command-directed urine drug screening programs are in
    place. However, at the DOD level, we do not track positive drug tests
    by the individual's presence on a medical hold or medical holdover
    list.

        52. Senator Graham. Dr. Jones, what actions did the Army take in
    cases of those who tested positive, if any, for use of illegal drugs?
        Dr. Jones. The Army processes all incidents of illegal drug use in
    strict compliance with the Uniform Code of Military Justice--regardless
    of a soldier's duty status. Medical holdover soldiers are held to the
    same standards as their Active Duty counterparts.

        53. Senator Graham. Dr. Jones, is there a pervasive problems of
    illegal drug use in medical holdover throughout the Army?
        Dr. Jones. There is no pervasive problem of illegal drug use in
    medical holdover throughout the Army.

                 RECRUITMENT AND RETENTION OF MEDICAL PERSONNEL

        54. Senator Graham. Lieutenant General Rochelle, Vice Admiral
    Harvey, Lieutenant General Coleman, and Lieutenant General Brady, we
    are now more than a year into the debate about how to improve
    recruiting and retention of medical personnel in both the Active and
    Reserve components. What actions have you undertaken in fiscal years
    2007 and 2008 to address this critical need within the Services?
        General Rochelle. Currently, the Army employs health professional
    scholarship, financial assistance, loan repayment, and Reserve
    component specialized training assistance programs in conjunction with
    student stipends, accession bonuses, and Incentive Specialty Payments
    (ISPs) to augment our recruiting efforts to achieve medical personnel
    accession goals for fiscal year 2007. Likewise, we utilize ISPs and
    Critical Skill Retention Bonuses (CSRBs) to assist in retaining those
    health professionals currently answering the Nation's Call to Duty.
        Additionally for fiscal year 2008, the Army plans to implement the
    following initiatives: 1) expand the Referral Bonus Program to include
    AMEDD applicants upon congressional authorization approval, 2) increase
    health professional scholarship stipends, and 3) increase outreach for
    accessioning (i.e., touring with the new Team Medic Support Vehicle).
    Specifically to address the concerns with nursing shortfalls, the Army
    plans to increase the Army Nurse Accession Bonus from $25,000 to
    $30,000; allow officers serving in other Army specialties to obtain an
    entry-level nursing degree while remaining on Active Duty; and expand
    the CSRB for nurses to include other nursing specialties.
        We continue to review the benefits of implementing a AMEDD Officer
    Accession Bonus Pilot Program that would pay applicants up to $6,000
    for completing the entire accession process within 90 days, expanding
    or increasing targeted incentives, and offering civilian doctors the
    opportunity to serve a reduced 2-year military service obligation in
    lieu of the statutory 8-year service obligation term.
        Admiral Harvey and General Coleman. Navy has established a focused
    Medical Capabilities Working Group (MCWG) to develop a strategy for
    building and sustaining the necessary medical capability for the Navy
    of 2013. Rising civilian sector competition and wages caused by the
    surge in demand for health care services to support an increasingly
    aging national population adds difficulty to the recruiting and
    retention of medical professionals. While this MCWG develops a
    comprehensive strategy, we have:

             deployed a Medical Speaker's Bureau to send Navy doctors,
            dentists, and Medical Service Corps (MSC) officers in critical
            skills to meet and recruit prospects at medical university
            campuses (BUMED provided $100,000 in Temporary Additional Duty
            funds to support this effort);
             hired, trained, and put in place 22 medical officer
            recruiters on Active Duty for Special Work (ADSW) orders to
            bolster our total force (Active and Reserve) medical officer
            recruiting efforts;
             refocused advertising/marketing plans on medical recruiting.
            These included email, direct mailings, influencer packages, job
            postings on Monster.com, and new print ads for Nursing,
            Dentistry, and Physicians;
             expanded Reserve component (RC) eligibility for the $10,000
            Affiliation Bonus to all health professions officers
            (physician, dentist, nurse, and MSC) in non-wartime critical
            specialties;
             initiated a Critical Skills Accession Bonus (CSAB) for Health
            Professional Scholarship Program (HPSP) students on a limited
            basis due to resource constraints.

        Current medical professional retention incentives include:

             Medical Corps: Multiyear Special Pay (MSP), Incentive Special
            Pay (ISP), Variable Special Pay (VSP), Additional Special Pay
            (ASP), and Board Certified Pay (BCP);
             Dental Corps: Dental Officer Multiyear Retention Bonus
            (DOMRB), Incentive Special Pay (ISP) for Oral and Maxillofacial
            Surgeons, Additional Special Pay (ASP), Critical Skills
            Retention Bonus (CSRB) for general dentists, and Board
            Certified Pay (BCP);
             Nurse Corps: Nurse Anesthetists Incentive Special Pay (ISP),
            and Board Certified Pay (BCP);
             Medical Service Corps: Optometry Pay, Optometry Retention
            Bonus (ORB), Pharmacy Officer Special Pay (POSP), and Non-
            Physician Healthcare Provider Board Certified Pay (BCP).

        We have also recommended the designation of Clinical Psychologists
    and junior Nurse Corps Officers within selected year groups as having a
    critical skill for the purposes of establishing a critical skills
    retention bonus.
        Congress also included additional authorities in the National
    Defense Authorization Act (NDAA) for Fiscal Year 2007. Within resource
    constraints, we are moving forward to put many of these authorities in
    place to confront the mounting readiness challenges we face in the
    health professions. These include:

             Increase in the Health Professions Scholarship Program (HPSP)
            stipend from $15,000 to $30,000;
             Direct accession bonus of up to $400,000 for physicians and
            dentists;
             Increase in the Health Professions Loan Repayment (LRP) from
            $22,000 to $60,000;
             Increasing the Financial Assistance Program (FAP) grant from
            $30,000 to $45,000.

        We also note, with appreciation that both House and Senate
    introduced versions of the NDAA for Fiscal Year 2008 include the
    following additional authorities we requested to address health
    professions readiness concerns:

             Increase in incentive special pay and multiyear retention
            bonus for medical officers of the Armed Forces;
             Increase in dental officer additional special pay;
             Accession bonus for participants in the Armed Forces health
            professional scholarship and financial assistance program.
        General Brady. We have allocated our available special and
    incentive pay dollars to optimize return on investment during the
    period. Supported by the Air Force Recruiting Service and AFMS, the Air
    Force Personnel Directorate (AF/A1) has also championed the need for
    additional dollars for medical accession bonuses and health professions
    scholarships at both the Air Force and OSD/(Health Affairs) levels. AF/
    A1 is also in the process of standing up the Recruitment and Retention
    Investment Strategy Council, which will oversee medical personnel
    investment strategies, balance recruiting and retention, to provide a
    total mission-ready force.

        55. Senator Graham. Lieutenant General Rochelle, Vice Admiral
    Harvey, Lieutenant General Coleman, and Lieutenant General Brady, are
    any additional authorities needed to assist you?
        General Rochelle. We do not foresee requiring additional
    authorities for fiscal year 2007 or fiscal year 2008; however, your
    assistance in ensuring the current proposed initiatives are approved
    and fully funded is critical in taking the right steps towards
    addressing the medical personnel requirements of the Army.
    Additionally, the Army's ability to compete with the civilian market
    requires that you remain receptive to future requests that may arise to
    ensure we remain postured to meet the medical needs of our soldiers
    during this sustained conflict.
        Admiral Harvey. I appreciate the outstanding support Congress
    provided through enactment of new or enhanced authorities included in
    the NDAA for Fiscal Year 2007, intended to bolster medical recruiting,
    such as new accession bonuses, increased limits for loan repayment, and
    increased stipends for participants in the health professional
    scholarship and financial assistance programs. Within resource
    constraints we are moving forward to put many of those authorities in
    place to confront the mounting readiness challenge we face,
    particularly within the health professions.
        I also note, with appreciation, that Senate- and House-introduced
    versions of the NDAA for Fiscal Year 2008 include the following
    additional authorities we requested to address specific health
    professions readiness concerns:

             increase in incentive special pay and multiyear retention
            bonus for medical officers,
             increase in dental officer additional special pay,
             accession bonus for Armed Forces health professional
            scholarship and financial assistance program participants.

        We are continuing to evaluate other possible initiatives that would
    assist in health professions recruiting, such as:

             initial accession bonus for Clinical Medical Service Corps
            Officers,
             increase in the accession bonus cap for registered nurses
            accepting a commission,
             increase in the accession bonus cap and stipend for nursing
            students,
             bonus for successful referrals into Navy medical programs,
            and
             utilizing the Health Professional Scholarship Program (HPSP)
            for certain undermanned Clinical Medical Service Corps
            communities.

        General Coleman. USMC M&RA needs several new authorities in order
    to better carry out its mission:
        First, we need the authority to pay IRR marines for taking the time
    to complete electronic screening. This is a NDAA for Fiscal Year 2008
    initiative that would compliment our current in-person muster program.
    It will enable us to pre-screen members of the IRR without the high
    cost and time commitment of a muster. We are thankful for its inclusion
    in H.R. 1585 and S. 567, as introduced.
        Second, we would also like to see tax-free Selective Re-enlistment
    Bonus (SRB) authority. This would remove the current inequities in the
    SRB program. Currently, some marines are denied the tax-free benefit
    solely because their deployment time does not coincide well with their
    end of active service date, neither of which is in their control; one
    day may very well make the difference between a marine being taxed on
    his or her SRB or not. Most marines will have deployed during their
    prior enlistment so the date of that deployment should not be a limiter
    to the tax-free benefit, and those few marines who do not deploy during
    their current enlistment will inevitably deploy in support of the
    Commandant's program to get ``every marine into the fight.''
    Furthermore, many marines currently try to delay their decision to re-
    enlist until they are in a tax-free status, reducing the predictability
    of reenlistments which complicates manpower planning. SRB is a tool to
    increase retention. As such, all marines entitled to SRB should be
    entitled to the tax-free benefit.
        Third, USMC M&RA would like expanded authority to pay a regular re-
    enlistment bonus. This would assist with our retention efforts, made
    even more challenging by the recent increase in authorized end
    strength. This bonus would be significantly less than the current SRB
    we offer for special skills. Marines who qualify for both would only be
    entitled to the higher of the two.
        Finally, the USMC needs a permanent increase in General Officers
    (GOs) in order to more effectively carry out its mission. An increase
    in Active GOs from 80 to 90 and in Reserve GOs from 10 to 12 is
    requested. This will enable us to fill all of our GO requirements, some
    of which are currently gapped, and to enable all of our GOs better
    opportunity to compete for joint positions.
        General Brady. At this time, our limiting factors are more
    frequently dollars for execution than shortfall in authority. As
    mentioned above, we are pursuing additional dollars to support both
    accession bonuses for medical personnel and an increased number of
    Health Professions Scholarships. Both initiatives, when funded, should
    have a substantial impact on our medical personnel shortages.
                                     ______

                  Question Submitted by Senator Susan Collins

                                    BENEFITS

        56. Senator Collins. Secretary Hall, on March 15, outgoing Army
    Chief of Staff General Schoomaker told this committee that 55 percent
    of our Nation's total Armed Forces are now National Guardsmen and
    reservists. That to me is a staggering statistic. If we are going to
    rely so heavily on these citizen soldiers, at least in the short-term,
    I believe we need to reevaluate the benefits provided to these men and
    women.
        I, along with a number of my colleagues in the Senate, am concerned
    with the growing disparity between Active Duty and Reserve component
    educational benefits. We have mobilized National Guardsmen and
    reservists serving side-by-side with Active Duty servicemembers in Iraq
    and Afghanistan, and I have heard a number of senior defense officials
    say that you simply cannot tell the difference between Active Duty
    servicemembers and Reserve component forces in theatre.
        Yet, today, Selected Reserve educational benefits pay 29 cents to
    the dollar compared to those of the Active component. Moreover, many
    National Guardsmen and reservists today don't have time to use the
    educational benefits available to them because they are being mobilized
    so frequently.
        What are your thoughts on this issue and are there any changes you
    think may be warranted given how much we are asking of the Reserve
    component forces today in the global war on terror, both at home and
    abroad?
        Secretary Hall. The Reserve components have comprised over 50
    percent of our Armed Forces for several years. There is no doubt that
    they are an integral and vital component of our military capability.
    They have been called upon in unprecedented numbers beginning with the
    first Persian Gulf War, and they have performed magnificently.
    Moreover, they are enlisting and reenlisting during these challenging
    times such that the Department is meeting its strength goals.
        One of the incentives that has helped us in meeting our strength
    goals since 1984 is the Montgomery GI Bill for the Selected Reserve
    (MGIB-SR). This educational assistance program not only provides a
    strong recruiting incentive, it also helps us retain personnel because
    to use the benefit, an individual must serve a minimum of 6 years and
    continue to serve. However, there is an exception to the requirement
    for continued service in the Selected Reserve for a member who has
    served on Active Duty. Not only is the delimiting date extended by the
    amount of time served on Active Duty plus 4 months, but the MGIB-SR
    benefit can be used following separation from the Selected Reserve as
    well for a period of time that equals the amount of time served on
    Active Duty plus 4 months. Thus, a member who is called away from his
    or her studies does not lose that period of eligibility because of
    military service. Moreover, the rotation goals set by the Secretary of
    Defense are designed to provide a significant period between
    involuntary mobilizations--5 years. This provides ample time for
    Selected Reserve members to use the educational assistance programs
    available to them. While a member may voluntarily perform more duty,
    the minimum training requirement prior to the year leading up to
    mobilization is only 39 days a year.
                                     ______

                 Questions Submitted by Senator Saxby Chambliss

                             MILITARY HEALTH SYSTEM

        57. Senator Chambliss. Secretary Chu and Secretary Hall, you
    mention in your written statement regarding Reserve component retention
    that you ``are closely monitoring retention/attrition particularly for
    those members who have been mobilized and deployed to support
    operations in Iraq and Afghanistan.'' At this point, what type of
    information are you finding as you monitor this situation and do you
    see any trends that are noteworthy?
        Dr. Chu and Secretary Hall. Measuring all losses, regardless of
    reason, from the Reserve components, we are pleased to report that
    enlisted attrition remained below established ceilings for fiscal year
    2006, continuing a very positive trend. As a matter of fact, the
    composite (officer + enlisted) attrition rate of 18.4 percent was the
    lowest it has been since fiscal year 1991. Through February 2007,
    enlisted attrition is on track to remain below established ceilings for
    each Reserve component. We are closely monitoring retention/attrition,
    particularly for those members who have been mobilized and deployed to
    support operations in Iraq and Afghanistan and have seen a propensity
    by these veterans to continue to serve. A recent study revealed that
    Reserve members who were mobilized and deployed into the theater of
    operations were retained at similar rates to those not mobilized, and
    at higher rates than those mobilized but not deployed.

                                  DOD SCHOOLS

        58. Senator Chambliss. Secretary Chu, I am pleased to see that you
    focus on education of military children in your written statement, and
    that you note the challenge that DOD is creating for numerous local
    communities who will be absorbing thousands of military dependent
    students as a result of Base Realignment and Closure (BRAC), global
    rebasing, and force restructuring. I note that the President's fiscal
    year 2008 budget request includes $2.4 million to allow DOD to share
    expertise and experience with local, non-DOD schools impacted by these
    changes, to help these schools properly prepare for and educate these
    military dependent students. However, I also note that the Department
    also lists a $62.6 million unfunded requirement for this issue. In my
    home State of Georgia, Fort Benning will experience an influx of
    approximately 6,000 DOD personnel plus associated contracts as a result
    of BRAC. This influx is going to severely strain the local school
    districts that do not have the resources to construct new schools or
    hire new teachers in advance of arriving students. What specifically
    would this $62.6 million unfunded requirement pay for?
        Dr. Chu. The 2006 NDAA authorized the DODEA to establish
    partnerships with local and State educational agencies to promote
    quality education for military dependent students. The DODEA fiscal
    year 2008 budget includes $2.4 million of the unfunded requirement of
    $62.6 million to conduct initial assessments of school district needs
    and to begin developing partnerships with the affected school systems.
    Of course, DOD cannot build schools, estimated to cost billions of
    dollars, to help with this influx. Instead, DODEA will share its
    expertise in the areas of high quality educational programs, academic
    support, educator placement, and implementation of the President's
    Foreign Language Initiative to increase foreign language proficiency
    (especially in Mandarin Chinese and Arabic) in local education
    agencies.

        59. Senator Chambliss. Secretary Chu, why is it an unfunded
    requirement versus in the budget request?
        Dr. Chu. The 2006 NDAA recently authorized the DODEA to establish
    partnerships with local and State educational agencies to promote
    quality education for military dependent students. In response, the
    $2.4 million requested in the DODEA fiscal year 2008 budget provides
    start-up funding for this effort.

        60. Senator Chambliss. Secretary Chu, is DOD planning to fund this
    effort in future years in order to further address this issue?
        Dr. Chu. The Department will request funding in subsequent years to
    coincide with planned troop movements to assist with the transition of
    military children by sharing educational excellence with local
    education agencies. The goal of this effort will be to ensure that a
    high quality educational program is provided to all military dependents
    living both inside and outside the gates of military installations.

                           MANNING AND STRESS ISSUES

        61. Senator Chambliss. General Brady, some Air Force specialties
    such as security forces are experiencing deployment stress due to heavy
    deployed requirements. What is the Air Force doing to alleviate manning
    shortages and career-field stress related to increased deployments?
        General Brady. The Air Force is aggressively balancing assigned
    personnel across specialties while we size the overall force in
    accordance with our modernization/recapitalization plans. We have
    determined to fund manpower needs to meet future core Air Force mission
    capabilities while filling combatant commander needs in lieu of (ILO)
    Army and other sourcing requirements. In other words, the Air Force is
    not growing personnel inventories in heavily sourced specialties, like
    security forces, just to fill ILO taskings. The Air Force is also
    maximizing the number of qualified people eligible to deploy to reduce
    the tempo in stressed specialties across force. In particular for
    security forces, schoolhouse production is currently maxed-out,
    training roughly 5,000 new students each year to enter the Total Force.
    Re-enlistment bonuses are being offered to two of the three security
    forces specialties, and to other stressed specialties to improve
    retention in these crucial warfighting skills.

        [Whereupon, at 5:35 p.m., the subcommittee adjourned.]

    DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR
                                      2008

                                  ----------

                           WEDNESDAY, APRIL 18, 2007

                           U.S. Senate,
              Subcommittee on Personnel and
                      Subcommittee on Readiness
                                and Management Support,
                                   Committee on Armed Services,
                                                        Washington, DC.

    JOINT HEARING WITH THE SUBCOMMITTEE ON READINESS AND MANAGEMENT SUPPORT
      TO RECEIVE TESTIMONY ON THE READINESS IMPACT OF QUALITY OF LIFE AND
      FAMILY SUPPORT PROGRAMS TO ASSIST FAMILIES OF ACTIVE DUTY, NATIONAL
                     GUARD, AND RESERVE MILITARY PERSONNEL

        The subcommittees met, pursuant to notice, at 3:07 p.m. in
    room SR-232A, Russell Senate Office Building, Senator E.
    Benjamin Nelson (chairman of the Subcommittee on Personnel)
    presiding.
        Committee members present: Senators E. Benjamin Nelson,
    Akaka, Inhofe, Chambliss, and Graham.
        Majority staff members present: Jonathan D. Clark, counsel;
    Gabriella Eisen, professional staff member; Gerald J. Leeling,
    counsel; and Michael J. McCord, professional staff member.
        Minority staff members present: Derek J. Maurer, minority
    counsel; Lucian L. Niemeyer, professional staff member; Diana
    G. Tabler, professional staff member; and Richard F. Walsh,
    minority counsel.
        Staff assistants present: David G. Collins and Benjamin L.
    Rubin.
        Committee members' assistants present: Darcie Tokioka,
    assistant to Senator Akaka; Benjamin Rinaker, assistant to
    Senator Ben Nelson; Gordon I. Peterson, assistant to Senator
    Webb; Clyde A. Taylor IV, assistant to Senator Chambliss; and
    Adam G. Brake, assistant to Senator Graham.

       OPENING STATEMENT OF SENATOR E. BENJAMIN NELSON, CHAIRMAN

        Senator Ben Nelson. The Personnel and Readiness and
    Management Support Subcommittees of the Senate Armed Services
    Committee meet together this afternoon to consider the impact
    of quality of life and family support programs on the readiness
    of Active Duty, National Guard, and Reserve personnel.
        We're holding this joint hearing of our two subcommittees
    at the recommendation of Senator Akaka, who is chairman of the
    Subcommittee on Readiness and Management Support. I think,
    Senator Akaka, this is a great idea, and I appreciate very much
    your suggesting it.
        We all understand that our military personnel cannot focus
    on the mission at hand if they are distracted with worries
    about whether their families are being taken care of. Taking
    good care of military families translates directly to improved
    military readiness. It's our intent to support policies and
    programs that foster a family-friendly environment for our
    military families. So, Senator Akaka, thank you for your
    leadership on this.
        It's certainly appropriate that we hold this hearing on
    family readiness during April, as April is the month of the
    military child. Military parents have the very difficult and
    challenging task of raising children during these highly
    stressful times of deployment, redeployment, extended
    deployment, and reintegration into home life upon return from
    deployment. The Secretary of Defense just recently announced
    that the Army combat tours will be extended from 12 to 15
    months. What impact will this have on our military families?
    I'll be interested in hearing whether the Army is making a
    special effort to address the needs of the families of the
    servicemembers who just learned that they will be coming home 3
    months later than they had planned. What will the families have
    to say about this recent change? Parenting is challenging
    enough without these additional stresses. Military parents need
    help, especially during these trying times, and that's what
    this hearing is all about.
        Today, we'll hear from Senator Chambliss about his proposal
    to reduce the age at which certain National Guard and Reserve
    retirees are eligible to receive retired military pay.
        Next, we will hear from the Department of Defense (DOD) and
    from the military services about programs and policies that
    they have in place to help our military families.
        Following their testimony, we will hear from military
    spouses, who have a great deal of experience in dealing with
    the challenges faced by military families, and the National
    Military Family Association (NMFA), as well.
        We hope to hear from them about the effectiveness of the
    various programs for dealing with the unique stresses of
    military life, especially during deployments. We also would
    like to hear about other programs, including programs sponsored
    by civilian communities that reach out to our military families
    and contribute to their quality of life and financial
    readiness. Then, finally, we'd like to know if there are any
    gaps, or areas that these programs don't address.
        I plan to introduce our witnesses as their panel is called
    to testify.
        Senator Akaka, do you have an opening statement?

                  STATEMENT OF SENATOR DANIEL K. AKAKA

        Senator Akaka. Yes, Mr. Chairman, but I'd be willing to go
    after the ranking member.
        Senator Graham. No, it's fine.
        Senator Akaka. Thank you very much, Mr. Chairman.
        Chairman Nelson, I want to thank you for agreeing to hold
    this joint Personnel and Readiness and Management Support
    hearing today. I'm very, very pleased that the members of the
    Readiness and Management Support Subcommittee are joining today
    with Senator Graham, the ranking member, and Senator Inhofe,
    here, and another witness, Senator Chambliss, to participate in
    this hearing in support of our military families in order to
    illustrate how important family readiness is to the readiness
    of our military forces and to examine what we can do to improve
    family readiness.
        We have a large military population, from all four
    Services, living in Hawaii, and I was glad to see that the four
    Services and the National Guard and Reserves are represented
    here by spouses. They are valued members of our community. I
    know that it is not only our men and women in uniform, but also
    their families, who serve our Nation and who bear the brunt of
    the heavy demands placed on our military.
        Just as we are responsible for the well-being of our
    servicemembers, likewise we have a responsibility for their
    families. As chairman of the Readiness and Management Support
    Subcommittee, I asked that we hold this hearing today, because
    I'm convinced that how well we care for the families of our
    servicemembers directly affects the quality of our military. I
    really believe our military leaders understand this, as well.
        Two days ago, the Army announced a series of belt-
    tightening measures to deal with the unexpected costs of the
    President's so-called ``plus-up'' of forces to Iraq. The Army
    specifically exempted family support programs from any
    reductions.
        I also know that our Personnel Subcommittee, chaired by
    Senator Ben Nelson, has the most expertise on the programs that
    affect our families. So, I'm very pleased that we could work
    out this joint hearing with them, and want to thank, again,
    Senator Ben Nelson and Senator Graham for agreeing to hold this
    hearing with us.
        I want to welcome the witnesses for all of our panels this
    afternoon, especially those of you that have traveled far to be
    with us today. We have three panels and many witnesses today,
    so I will not take up valuable time by mentioning everyone
    individually, but I want you all to know, especially witnesses
    on the final panel, how much we appreciate both your being with
    us today and how much you do for your country through your
    families.
        I look forward to hearing from our colleague Senator
    Chambliss, our witnesses from DOD, and spouses, on our third
    panel. We have a wide range of issues to discuss today, from
    childcare and schools to counseling services to housing, and I
    could list many more.
        I hope that our witnesses today will be able to speak to
    two topics of particular interest to me:
        First, the unique financial stresses that military
    families--Active Duty personnel, National Guard, and Reserves--
    may face, in particular due to deployments, and whether
    financial planning services are widely available to these
    military families to meet these challenges.
        Second, I think we need to discuss not only what is the DOD
    doing for military families, but what role does the local
    community play in supporting military families, both in the
    Active Duty, as well as National Guard and Reserves. What role
    should it play? How much community involvement do military
    families really want?
        I will be especially interested in hearing from our final
    panel on this. Do our military families want as much
    interaction with, and assistance from, the civilian community
    as possible, or do they prefer to take care of their own?
        So, with these questions, let me say that I look forward to
    discussing this with our witnesses during our course of this
    hearing.
        Again, Mr. Chairman, I want to thank you so much for
    holding this hearing.
        Senator Ben Nelson. Thank you, Senator Akaka.
        Senator Graham, you're no stranger to this. If not for the
    change in November, you would still be the chairman and I would
    be the ranking member. Senator Chambliss has also been the
    chairman when I was the ranking member, so you certainly are no
    stranger, either.
        So, Senator Graham, do you have some opening remarks?

                 STATEMENT OF SENATOR LINDSEY O. GRAHAM

        Senator Graham. Yes, thank you.
        To our panel members, welcome, and I look forward to
    hearing from you and having some questions.
        To Senators Akaka and Nelson, congratulations for taking
    over the respective subcommittee gavels. It was an honor and a
    pleasure to have chaired the Personnel Subcommittee and to work
    very closely with Senator Nelson, who is an absolute joy to
    work with. I have a feeling that even though our titles may
    have switched, the work product will be the same.
        We accomplished a lot in the 109th Congress, and I look
    forward to continuing that, because the fight is stronger. The
    pressure on families is stronger in this Congress than it was
    in the last Congress, with no end in sight. So, that's why this
    hearing is so important, that we have a ready force, and you
    can't have a ready force without their families being well
    taken care of. The two go together.
        As to Senator Chambliss, I am very pleased that he was able
    to come here today to talk about a measure that he's been
    championing. He's the co-chairman of the Senate Reserve Caucus,
    with Senator Pryor. It's about the dilemma the country faces
    with our National Guard and Reserves. They're being used in
    historic numbers, in multiple deployments, akin only to World
    War II. We have a system that hasn't changed in 30 years, in
    many ways, and now is the time to look at the retirement system
    for the Guard and Reserve, in light of the war that's going to
    go on for a very long time in Iraq, that I believe is just one
    battlefront on this war. You could not win the war, and
    maintain our national security, without the Guard and Reserves.
    It's long overdue that we've looked at changing the benefits.
    The Guard Commission has been formed, and they've made
    recommendations. But Senator Chambliss's idea of lowering the
    retirement age, based on participation by the Guard member and
    reservist, is a great idea, and we need to embrace it as a
    Congress.
        It's been 5 years since the attacks on September the 11th.
    We have an All-Volunteer Force. There's 1,600 citizens of South
    Carolina in the 218th Brigade Combat Team, Army National Guard,
    going off to Afghanistan. I was in Iraq recently, and there's a
    lot of South Carolina roots in our military, both civilian and
    military members serving. Every State has been touched. The
    Guard and Reserve are indispensable. But the active duty
    families have gone through very difficult times, multiple
    deployments, no end in sight, and this is the opportunity for
    this country--I'm always asked, What can we do? What can we do?
    How can we help the military? Well, today is about finding out
    what we can do better than we're already doing. If it takes
    more money, so be it. This is the best investment America will
    ever make. Keeping families intact and safe and secure while
    their loved ones are off on the battlefield, that's the least
    we can do, and I am committed, working with my colleagues, to
    make sure we do it in a way that will make America proud.
        Thank you very much, Mr. Chairman.
        Senator Ben Nelson. Well, thank you, Senator Graham.
        Senator Inhofe, do you have an opening statement?
        Senator Inhofe. Yes, just very brief.
        What Senator Graham said, I agree with. We have that
    commitment to the quality of life. I chaired the Readiness and
    Management Support Subcommittee, with Senator Akaka, back in a
    previous life when we were in the majority. So, we've been
    living with these issues for a long time.
        The personnel issues, the quality-of-life issues, are, in
    fact, readiness issues and very significant. What I want our
    witnesses, particularly on the second panel, to address is two
    things. First of all, in the beginning of this administration,
    what, 6 years ago, plus, one of the commitments was to do
    something about eliminating inadequate family housing, in order
    to revitalize housing. Then, along came September 11, and we
    had to make up for what we lost back in the 1990s, when we
    dramatically cut back on our funding. I can remember--they call
    them sustainment, restoration, and modernization (SRM) accounts
    now; they used to be real property maintenance (RPM) accounts--
    they were actually robbing those accounts, not putting roofs on
    barracks in order to buy enough bullets to train with. So,
    that's how critical it was, and so, I say--a lot of times,
    where you have to take the money from is quality-of-life, and
    we can't afford to do it. But I hope that the second panel will
    address that, because the funding is going to be very difficult
    to increase funding there, because everything else is bleeding
    at the same time--our modernization program, our force
    strength, and other accounts that have to be funded.
        So, it's a difficult task, and I think all of us--all five
    of us--realize how important quality-of-life is to sustain this
    force that we have.
        Thank you, Mr. Chairman.
        Senator Ben Nelson. Thank you, Senator Inhofe.
        Our first witness today has already been introduced, but
    not sufficiently. Senator Chambliss has special status here
    today, because he's a member of both the Personnel and the
    Readiness and Management Support Subcommittees. As I mentioned,
    at one time he chaired the Personnel Subcommittee.
        In fact, I understand that, in June 2003, he actually
    chaired a hearing on family issues, very similar to this
    hearing, except that that hearing was held at Warner Robins Air
    Force Base in Georgia.
        So, Senator Chambliss, we're glad to have you here as a
    witness, and we're very anxious to learn about your
    legislation.
        Senator Chambliss. Chairman Nelson, thank you very much for
    that generous introduction there.
        I'm just very pleased to be here on the same dais today
    with these other two panels, particularly this third panel. All
    of us who serve on the Armed Services Committee know and
    understand that the commitment by individuals who join the
    military is a family commitment, and certainly these spouses
    here are military heroes, just like their husbands. So, I'm
    very pleased to have the opportunity just to be in their
    presence.
        Ladies, thank you all very much for what you do for
    America.
        Chairman Nelson, Chairman Akaka, Senator Ensign, Senator
    Graham, and Senator Inhofe, I do remember our days on the
    Personnel Subcommittee together. Ben, you were a great ally,
    and we got a lot accomplished back then, and you're doing a
    terrific job in starting out in the right direction here as the
    new chairman. Danny, congratulations to you, also. As a member
    of the Readiness and Management Support Subcommittee, I have
    significant interest, parochially and otherwise, in readiness
    issues. So, you've been a great ally, and I certainly look
    forward to working with you.
        I am here today to talk about my bill, which is S. 648, the
    National Guard and Reserve Retirement Modernization Act. The
    retirement benefit for members of the Reserve components is a
    readiness issue, and it is a family issue, and it's appropriate
    that we discuss this issue today at this joint hearing.
        During the Cold War and up until 1989, the Reserve
    components were activated for an average of approximately 1
    million man-days per year. This represented the steady state
    for our reservists, who contributed primarily through weekend
    and 2-week drills, with occasional longer deployments in
    support of operational missions.
        During the 1990s, the Reserve components were activated for
    an average of 13 million man-days a year. This increase
    reflected President Clinton's focus on global peacekeeping and
    peace enforcement in places like Bosnia and Haiti, but also
    Operations Northern and Southern Watch, patrolling the no-fly
    zones in Iraq. The Air Force, in particular, was taxed during
    this time, and began, during that time, to transition from a
    strategic to an operational Reserve Force.
        In his statement before this committee on March 28, 2007,
    Under Secretary of Defense for Personnel and Readiness, Dr.
    David Chu, stated, ``Since September 11, 2001, an annual
    average of about 60 million duty days have been performed by
    Reserve component members, the equivalent of adding over
    164,000 personnel to the Active strength each year. This
    represents almost a fivefold increase since the 1990s, and a
    6,000-percent increase since the end of the Cold War. Almost
    565,000 Reserve component members have served in support of the
    current contingency since September 11, 2001.''
        DOD's decision to increase the Active Force in the Army and
    Marine Corps might relieve some of this stress on the Guard and
    Reserve; however, no one, including myself, believes that the
    way we use our Guard and Reserve Forces is going to return to
    anywhere close to its previous levels.
        In fact, yesterday, General Barry McCaffrey testified that
    we cannot view our Reserve Forces as an alternative force that
    is not engaged in operational missions, as we did in the past.
    They are part of the fight, and, according to General
    McCaffrey, will likely grow to 20 to 30 percent of our deployed
    combat forces over the long term.
        Individuals who sign up to join the Guard and Reserve today
    do so knowing that they are going to combat. They sign up
    expecting that their Reserve assignments will call them away
    from their home for significant periods of time. That was not
    true 15, nor even 5, years ago. It is a testament to the
    quality of people in our Nation, and to the leadership of the
    DOD, that, generally speaking, the military has done an
    admirable job of managing, recruiting, and retention in the
    Reserve component since the beginning of the global war on
    terrorism. However, I believe the Reserve components will be
    operating in an extremely challenging recruiting and retention
    environment from now on. I believe that it is going to get
    harder and harder to recruit and retain the necessary personnel
    that our Nation requires in the National Guard and Reserve.
        As recent studies on this issue have articulated, the long-
    term effects on the increased deployments and utilization will
    have on Guard and Reserve recruiting and retention are almost
    completely unknown. But I would wager that the effect will be a
    significant increase in the difficulty of attracting new
    recruits, as well as an increase in retaining mid-career
    personnel over the long haul.
        Given these factors, it would be shortsighted and
    irresponsible for us not to plan ahead. Several defense experts
    have testified, before the full committee, that we must use
    every tool at our disposal to recruit and retain the troops we
    need to defend our Nation. Now is the time to do that, not
    several years from now, when we are trying to fix a problem
    that could have been fixed if we had been proactive when we
    should have been.
        Conceptually, the nature of the Reserve retirement benefit
    is based on at least two factors:
        The first factor is, what is the adequate compensation, in
    terms of a financial annuity and nonfinancial benefits, for
    those servicemembers who have successfully completed 20 years
    of service in the Reserve component? This is basically a
    question of, what is fair, given the role we have asked these
    personnel to play, and the role they have carried out in
    service to our Nation?
        The second factor is, what kind of benefit will effectively
    shape the Reserve Force in a way that allows us to meet the
    requirements we have placed on the Reserve components without
    creating any unintended side effects, such as negatively
    affecting the makeup of the Active-Duty Force? This is a
    pragmatic question that is based largely on what we want the
    force to look like, and who and what kind of people we want to
    retain.
        In this new world of an operational, versus a strategic,
    Reserve, the answer to both of these questions has changed.
    That is why we need to modernize the retirement for National
    Guard and Reserve personnel.
        First, and as I stated earlier, the rate at which our
    Nation is using members of the Guard and Reserve has not
    increased linearly over the last 15 years, it has increased
    exponentially. The role of the Guard and Reserve has
    fundamentally changed, and what constitutes a fair compensation
    should fundamentally change as a result.
        Second, the Guard and Reserve Force structure is clearly
    being shaped by our servicemembers' response to deployments and
    the risk of deployments. When deciding whether to stay in the
    Reserve component or not, servicemembers are asking a different
    set of questions, such as: ``Will I be deployed? How often will
    I be deployed? For how long will I be deployed?'' Members of
    the Guard and Reserve serve voluntarily, but they expect
    compensation for their service, and they expect compensation
    that takes into account the disruption in their personal and
    professional lives. As this disruption grows, which it has, the
    compensation should grow, as well.
        Some studies have indicated that the most effective tool to
    attract and retain personnel, particularly more junior
    personnel, is through cash bonuses. In fact, these bonuses have
    been effective in recent years in helping the Services meet
    their recruiting and retention goals. I support continuing cash
    payments to these folks in order to sign them up, as well as to
    retain them.
        However, in terms of a long-term strategy that is good for
    our military and good for our country, I have fundamental
    problems with this approach. Cash bonuses can motivate
    behavior. However, I would much rather motivate behavior over
    the long term by providing an early retirement benefit based on
    continuous service and deployments than motivate it by
    appealing to someone's impulses.
        In my mind, a deferred benefit that incentivizes
    participation and retention over the long term and rewards
    personnel for extended separations from their jobs and family
    is the right approach. This will have the added benefit of
    retaining the people who we truly need to retain, and that is
    mid-career experienced personnel who have been deployed and
    whose experience we need to keep in the Guard and Reserve. The
    people who, in all likelihood, have competing demands on their
    life, without an additional incentive, will leave the service.
        Currently, National Guard and Reserve members are the only
    Federal retirees--and I emphasize this--they are the only
    Federal retirees who must wait until age 60 to collect
    retirement pay. My bill would reduce the age for receipt of
    retirement pay by 3 months for every 90 days a Guard or Reserve
    member spends on Active Duty in support of a contingency
    operation or on Active Duty for purposes of responding to a
    national emergency. The maximum age reduction would be down to
    age 50, and the adjustment would include volunteers, as well as
    those involuntarily activated. The bill would include any duty
    performed since September 11, 2001.
        As you can see, this is a targeted benefit which rewards
    those who have served for significant periods in support of a
    contingency operation. It is not a handout to members of the
    Guard and Reserve for simply showing up.
        Soon after he was sworn in as Secretary of Defense,
    Secretary Gates announced that he would mobilize Guard and
    Reserve personnel as units, rather than individuals, and that
    it would be the Department's policy to not mobilize them for
    more than 2 consecutive years, rather than 2 cumulative years,
    as the policy had been under Secretary Rumsfeld.
        In light of this fundamental change in policy, we don't
    really know--and, more importantly, reservists, themselves,
    don't really know--how often they're going to be used. This
    uncertainty will clearly have an effect on both recruiting and
    retention, something my bill aims to address.
        There is an additional reason why an enhanced retirement
    benefit is the right approach, and that is because the Guard
    and Reserve members who we are mobilizing are sacrificing their
    civilian careers, including their retirement benefit, by being
    called away from their civilian jobs. I believe that, in large
    part, employers are understanding and supportive of Guard and
    Reserve members. But, nevertheless, for a Reserve member who
    spends significant time away from his or her civilian job, that
    job is going to be affected. The right compensation for that
    effect is an improvement in the Reserve retirement benefit to
    offset the long-term effect on a servicemember's civilian
    career.
        The largest source of recruits for the Reserve components
    has historically been people leaving Active Duty. However,
    given the current role of the Reserve components, many
    personnel leaving Active Duty are going to choose not to
    affiliate with the Guard and Reserve, because they simply stand
    to be deployed again. My bill addresses this problem by
    providing an additional incentive in the event a servicemember
    does get deployed. This is especially essential for older
    servicemembers, who are not as incentivized by cash bonuses,
    and are, instead, looking for a longer-term benefit.
        For members with significant time in the Active Force, my
    bill will provide an additional incentive for them to join the
    Reserve component, and stick with it over the long haul, so our
    Nation will not lose the benefit of their experience.
        One argument I have heard against this bill from DOD, and
    even from some of my fellow Senators, is that we should not
    equalize the benefits of the Active and Reserve components. I
    agree that these benefits should not be equalized. However, I
    think that any objective observer would, without question,
    conclude that my bill does not even come close to doing this.
        For example, under my bill, a servicemember who completes
    20 years of total service, 10 of them in the Reserve, would
    have to deploy for 5 years to collect a retirement annuity at
    age 55. The same person who spent 20 years of total service,
    all in the Active component, could retire as early as age 40,
    and would receive almost twice the annuity the Reserve member
    would receive. That is the case for a reservist who is
    mobilized for 5 years. The average reservist would get a far
    lesser retirement benefit.
        My bill would not equalize the benefits, but would,
    instead, provide an incentive for prior Active Duty personnel
    to join the Reserve, and, for current reservists to stick with
    it until at least the 20-year point.
        Gentlemen, I would have to tell you since we have been
    actively promoting this, I cannot go anywhere, either inside of
    Georgia or outside of Georgia, that a member of the Guard and
    Reserve does not come up to me, introduce themselves, and say,
    ``I know what you're trying to do to help out our Guard and
    Reserve from an early retirement standpoint. I'm in the Guard
    or Reserve, and it is the number-one issue for me and my
    family.''
        Mr. Chairman, the topic of today's joint Subcommittee
    hearing is the readiness impact of quality-of-life and family
    support programs to assist families of Active Duty, National
    Guard, and Reserve military personnel. In the end, we are here
    today to determine how we can best support our military
    personnel and their families. That is what my bill does. An
    improved retirement benefit for the National Guard and Reserve
    will produce a higher quality-of-life, leading to better
    recruiting and retention trends, and a better-shaped Guard and
    Reserve Force.
        Cash bonuses can be effective, and they are effective, but
    they are not the way to provide a better quality-of-life over
    the long term for our Reserve component personnel who, today,
    are sacrificing their civilian careers, and the benefits they
    accrue through those careers, for the sake of our Nation. This
    legislation represents the right approach at the right time.
        The Naval Reserve Association, the Reserve Enlisted
    Association, the Reserve Officers Association, and the National
    Guard Association of the United States have all extended
    support for this bill. For the record, Mr. Chairman, I would
    like to include a copy of a letter signed by the 33 members of
    the Military Coalition in support my bill.
        Senator Ben Nelson. Without objection.
        [The information referred to follows:]

        Senator Chambliss. Mr. Chairman, thank you for the
    opportunity to testify. I'm happy to answer any questions that
    you or any member of the committee might have.
        Senator Ben Nelson. Thank you, Senator Chambliss.
        Do any of the members of the committee have any questions?
    [No response.]
        I think you've laid it out very well. I think we fully
    understand it and appreciate very much your leadership in this
    area. Thank you for your kind comments, and we appreciate your
    being here with us today.
        Senator Chambliss. Thank you, Mr. Chairman.
        Senator Ben Nelson. In Senator Ensign's absence, due to a
    prior obligation, without objection I'm adding his questions to
    be submitted for the record.
        Now, let's see, the second panel will be coming forward
    now.
        Today, we have witnesses from the DOD and from the military
    Services to describe the programs that are available for
    military families. We welcome the Honorable Mike Dominguez. Am
    I close? Dominguez?
        Mr. Dominguez. Dominguez.
        Senator Ben Nelson. That's it, Dominguez, the Principal
    Deputy Under Secretary of Defense for Personnel and Readiness;
    Dr. Lynda Davis, Deputy Assistant Secretary of the Navy for
    Military Personnel Policy; John McLaurin, Deputy Assistant
    Secretary of the Army for Human Resources; and Lieutenant
    General Roger Brady, Deputy Chief of Staff of the Air Force for
    Manpower and Personnel.
        We have your prepared statements, which will be included in
    the record, and what we would like is if you would take the
    opportunity to make a brief opening statement, then we will go
    to the questions.
        Secretary Dominguez?

    STATEMENT OF HON. MICHAEL L. DOMINGUEZ, PRINCIPAL DEPUTY UNDER
            SECRETARY OF DEFENSE FOR PERSONNEL AND READINESS

        Mr. Dominguez. Chairman Nelson and Chairman Akaka, I thank
    you and the distinguished members of the subcommittees. Thank
    you for the opportunity to meet with you today and discuss the
    programs we have to support military families.
        I want to start first with some current events.
        Earlier today, I held a press conference announcing
    Secretary Gates' decisions on the awarding of administrative
    absence to members of the Armed Forces that are deployed or
    mobilized in advance of the 1-year for Active service, ``1 year
    deployed and 2 years back home'' standard; and, for the Guard
    and Reserve, it was the standard he set of 1 year mobilized for
    every 5 years back home. So, he committed to doing a program to
    recognize people when he was forced, through national security
    demands, to break that contract. I announced that today, and I
    had given a heads-up to your staff that that was happening.
        The second is that, as Senator Chambliss recognized, we
    have a recent decision to extend Active Duty Army deployments
    in Iraq and Afghanistan to 15 months. The thing that did for
    military families, though, is provide predictability.
    Predictability's important to our servicemembers, and this
    decision provides that planning stability for our families.
        Next, we are fully investigating the care provided to our
    wounded, including the component of that care that is outreach
    and support for their family members. We're taking measures to
    correct problems, as we identify them. We are working with and
    supporting the reviews to the presidential commission,
    Secretary Gates's independent review group, Secretary
    Nicholson's task force, and General Scott's Veteran's
    Disability Commission.
        Now, that's the summary of current events. I just wanted to
    get you up to date on those.
        The Social Compact, which we published in 2002 and
    modernized in 2004, describes the array of programs we have in
    place to support the men and women in uniform and their
    families. DOD has worked aggressively to transform services to
    families facing the challenges of war. We understand how hard
    it is for military families to cope with the high pace of
    deployments and extensions.
        Communications between troops and families back home have
    been made more affordable and more available.
        Military OneSource is an incredible toll-free and Internet
    resource that offers both troops and family members the option
    of speaking to a qualified counselor or consultant, 24 by 7,
    from any location in the world. It is a portal, providing
    access to a vast array of useful information, tools, and
    assistance.
        We have addressed the stressful effects of repeated
    deployments and extensions through increased availability of
    family assistance counseling, to include financial counseling.
        For the families back home, we have moved forward with an
    emergency intervention strategy to address the most pressing
    childcare needs at locations affected the most by high
    deployments and rebasing.
        Providing the same level of support to the geographically
    dispersed Guard and Reserve component families as we provide to
    families living near military installations is challenging.
    Technology is a part of the solution, as so many military
    families obtain information over the Internet. Military
    OneSource has been an enormous support to the Guard and Reserve
    families.
        A joint family readiness program is being implemented,
    modeled after Minnesota and New Hampshire National Guard
    programs. Six pilot programs are in progress.
        States are forming integrated interservice family
    assistance committees to facilitate access to information
    services and resources.
        The recently announced extension of current and future
    tours to 15 months will be hard on families, and we are
    stepping up the availability of training and counseling support
    for volunteers to ameliorate that challenge and deal with it.
        Much of this has been made possible by your support of the
    emergency supplemental funding for the war effort. We
    particularly appreciated the expanded authority to build
    childcare centers that you have provided in the past.
        In the past year, we also fielded special surveys to
    military spouses, so we could more fully understand the impact
    of deployments on families. Results indicate that 61 percent of
    Active Duty spouses, and 75 percent of Reserve component
    spouses, support their husband or wife staying in the military.
    These results are encouraging. They're not adequate, but they
    are encouraging.
        The partnership between the American people and the noble
    warfighters and their families is built on the understanding
    that families also serve. We appreciate the service and
    sacrifice of our military families. They sustain our troops on
    the battlefield.
        Before I close, I want you to know that we are in the
    process of implementing the predatory lending law that you have
    been so instrumental in establishing. We appreciate your strong
    support, and it will make a difference to the financial well-
    being of the force.
        Sir, I look forward to your questions.
        [The prepared statement of Mr. Dominguez follows:]

                  Prepared Statement by Hon. Michael Dominguez

        Mr. Chairman and distinguished members of this subcommittee, thank
    you for this opportunity to discuss our programs supporting the well-
    being of military families. Let me begin by addressing issues recently
    in the news.

                                 CURRENT EVENTS

        Last week, Secretary of Defense Gates announced his decision to
    extend from 12 to 15 months the tours for Active Army soldiers in
    Central Command. That was a difficult decision for the Secretary as
    these longer tours will be hard on Army families. While a 15-month tour
    is an unpleasant prospect, we hope this decision will allow most
    soldiers a full year at home between deployments and will preclude the
    need for unplanned tour extensions during a deployment. As a result,
    Secretary Gates was able to provide a measure of predictability and
    stability for soldiers and their families.
        We are fully investigating the care provided to our wounded,
    including outreach to and support for families. Earlier this week, we
    received the report of the Independent Review Group established by
    Secretary Gates. We appreciate their work and are moving quickly to
    evaluate their recommendations. We also await the findings of the
    President's Commission on Care for America's Returning Wounded
    Warriors, Secretary Nicholson's Interagency Task Force on Returning
    Global War on Terror Heroes, and the Veterans' Disability Benefits
    Commission. As these or our own investigations identify areas demanding
    improvement we will act--and that includes seeking legislation from the
    Congress, should that be necessary.
        Last year, Congress passed legislation to eliminate predatory
    lending to members of the Armed Forces. Last week, the regulations
    called for in the law were published in the Federal Register, beginning
    a 60-day comment period. We are on track to have those regulations in
    effect by October 1, 2007, as intended by Congress. Elimination of
    predatory lending will make a big difference to the financial well-
    being of our young enlisted families. Thank you for your strong
    support.
           families: the heart and soul of troops on the battlefield
        This is the sixth year of sustained combat and the resiliency of
    servicemembers and their families is nothing less than remarkable.
        Our military families are the heart and soul of troops on the
    battlefield and when they call back home they want to hear, ``We're
    doing fine . . . we miss you but we are doing fine.'' The Department
    made family support a priority and redesigned and boosted family
    support in a number of ways to recognize the crucial role families play
    in supporting servicemembers on the battlefield.
        Of paramount importance to those deployed is to know that their
    families have good support and someone to reach out to while they are
    away. Without a doubt, families also serve and sacrifice.

                 WHAT MAKES A DIFFERENCE FOR FAMILIES BACK HOME

    Communication with their loved ones:
        Military spouses indicate that being able to communicate with their
    loved one is the number one factor in being able to cope with
    deployments. Back home, computers and Internet service at base
    libraries, family support centers, and youth centers ensure families
    can send and receive e-mails from their loved ones who are deployed.
    This communication is essential to morale and to our ability to sustain
    deployments.
        In the deployed environment, phone banks with Internet hook ups are
    readily available in base camps. Free morale calls are also regularly
    available in theater. Morale programs include 145 free morale welfare
    and recreation (MWR)-operated Internet cafes in Iraq and 30 Internet
    cafes in Afghanistan. Mobile Internet cafes offer Internet Protocol
    phone service at less than 4 cents per minute. The cost of phone calls
    is now much reduced through work with telecom companies. Telephone
    calls once a dollar or more a minute are now down to 19 cents a minute.
    Our exchanges also provide unofficial telephone service at low
    international per minute rates for deployed members on land and sea (19
    cents in Iraq and Afghanistan and 45 cents aboard ship).
    Communication strategy:
        In partnership with the military Services, the Department leveraged
    the power of technology to provide servicemembers and their families
    with reliable information, as well as someone to talk to 24/7. Our new
    capability is two pronged. Through our Military Homefront web portal
    and our toll-free call center and interactive Web site, Military
    OneSource, we provide credible, confidential support in a convenient
    and efficient manner. The success of our technological outreach
    services has been phenomenal.
        The cornerstone of our communication strategy is Military OneSource
    (www.militaryonesource.com or 1-800-342-9647). Military OneSource has
    quickly become the trusted source of information and assistance for
    servicemembers and their families. Military OneSource is a referral
    service that provides information and assistance on a wide range of
    issues. Topics include parenting, child care, educational services,
    financial information, and counseling. Individualized assistance is
    available by telephone, email, or the Internet. Department survey
    results indicate that one in five servicemembers used Military
    OneSource in the previous 12 months. The current call volume is almost
    1,000 calls per day. In fiscal year 2006, there were on average 125,000
    on-line visits per month.
        The 2006 Army Family Action Plan Conference designated Military
    OneSource as the number one program in support of mobilization,
    deployment, and family readiness. The organization praised Military
    OneSource as a benchmark program that is not dependent on family
    geographic location or branch of Service, or component (Active or
    Reserve) within a Service.
        The second part of our communication strategy is Military
    Homefront, (www.MilitaryHomefront.dod.mil). Our award-winning, ``best
    in government'' quality-of-life web portal is a user friendly site that
    provides easy access to all of the on-line information about the
    Department's quality-of-life programs. In fiscal year 2006, there were
    over 25 million hits and 1.5 million visitors.
        Two new applications, Military Installations and Plan-My-Move, add
    a new dimension to the Homefront. For the first time, servicemembers
    can access the on line Plan-My-Move, interactive moving program that
    provides tools for budget planning, customized calendars, household
    goods inventories, and much more. Military Installations provides
    directions to programs, services and facilities for military bases,
    National Guard offices, and Department of Veterans Affairs (VA)
    facilities worldwide. Military Installations allows families to find
    relocation information tailored to their specific needs, whether they
    are moving overseas, moving a family member with special needs, moving
    with children, or seeking employment for a spouse after a move. These
    programs are part of our commitment to military families, and provide
    information families need to deal with their mobile military lifestyle.
    These services can also be accessed through Military OneSource.
    Counseling:
        Demand for family assistance and military member counseling more
    than doubled over the last year. The Department is aggressively and
    very successfully addressing the stressful effects of repeated
    deployments by increasing availability of family assistance counseling.
    This short-term, situational, non-medical problem-solving support is
    designed to help servicemembers and their families cope with normal
    reactions to stressful situations. All the military Services use this
    resource that is intended to augment existing military support services
    during the cycles of deployment and reintegration. Counseling support
    is available both on and off military installations in the United
    States and overseas. Up to six sessions of counseling per situation can
    be requested by individuals and families. The counseling, provided by
    licensed and credentialed professionals, is confidential and optimally
    available within a 30-minute drive time of the individual requesting
    services. Counselors are trained to assist families with life
    management issues such as reunion expectations, loneliness, stress,
    long separations, differences after a year apart, effects of deployment
    on children, loss and grief, and how best to reintegrate into family
    life. Financial counseling is also available to help with today's
    complex financial decisions and the added complication of family
    separations.
        Counseling support is designed to be extremely responsive and
    flexible in order to meet emergent needs. For example, during the
    recent extensions of the Stryker Brigade at Fort Wainwright and Fort
    Richardson, AK, the 1st/34 Brigade from the Minnesota Army National
    Guard, and the Third Brigade of the 10th Mountain Division at Fort
    Drum, counselors were immediately deployed--at the request of the home
    station commanders--to support the families.
        Counselors are also available to meet returning aircraft when
    servicemembers arrive at home from deployment. Counselors speak at
    Family Readiness Support Groups and townhall meetings. Psycho-
    educational presentations are provided by counselors to help
    servicemembers and families understand the emotional challenges they
    may experience during the current high-stress military environment. The
    counselors also provide support to the Department's summer youth
    programs, the National Guard Summer Programs, and the National Military
    Family Association Operation Purple camps. Services are available to
    children, parents, and staff.
        Our families are managing successfully. New research shows that
    divorce rates are no higher than they were 10 years ago, when demands
    on the military were less intense. Commitment remains strong from both
    family members and servicemembers. Still, even resilient warriors and
    families sometimes need professional assistance to sustain continued
    deployments. Non-medical counseling is helping young families cope and
    is often that necessary ounce of prevention that enables them to cope
    successfully with the challenges of military life.
    Child Care:
        Military parents rely on child care and youth programs during
    deployments to help them manage their rigorous work schedules. Upon
    deployment, the remaining parent becomes a single parent. Forty-two
    percent of E1-E4 servicemembers reported that managing child care
    schedules was a moderate to very serious concern during their last
    deployment. Therefore, having affordable, available child care is an
    important stress reliever for many families.
        In fiscal year 2006, the Department moved forward with the
    emergency intervention strategy to address the most pressing child care
    needs at locations affected by high deployments and rebasing. To
    continue the effort, the Department dedicated $82 million toward the
    purchase of modular facilities, and to renovation and expansion of
    existing facilities. This intervention will create approximately 7,000
    additional child care spaces in 37 new child care centers and
    additions/renovations to child care centers at 42 high personnel tempo
    locations.
        Providing child care for the Reserve and Guard presents challenges.
    Difficulties arise because of many factors; families do not generally
    receive services from an Active Duty installation and support systems
    available in the community may not be sufficient when a servicemember
    deploys. The Department supports the child care needs of Reserve
    component families through several initiatives to include:
        Operation: Military child care is a Department partnership with a
    national nonprofit organization that helps families/child guardians
    locate child care at reduced rates in their own communities when they
    are unable to access child care on military installations.
        Operation Military Kids is the Army's collaborative effort with
    community agencies to support the `suddenly military' Reserve component
    children and youth before, during, and after the deployment of a parent
    or loved one. In fiscal year 2006, more than 29,000 youths in 34 States
    participated in Operation Military Kids activities.
        In 2007, a new Coaching for Young Families initiative will provide
    20 full-time positions offering counseling support to families with
    young children in high deployment areas. Twelve of the 20 consultants
    will work at National Guard and Reserve component locations.

                        CHALLENGES OF DEPLOYMENT AND WAR

        Extensions of deployments are particularly stressful to families
    who desire predictability of return and to troops who do not want to
    disappoint their families. Properly handling notification of military
    members and families in case of an unplanned deployment extension is
    essential and every effort is made to notify members and then,
    expeditiously, families. The speed with which the news media can
    disseminate information can make it difficult for the chain-of-command
    to provide the first notification to families of a deployment
    extension. We are reviewing our processes to ensure that we get news to
    the families first whenever we can.
    Health Care:
        We know that everyone who goes to war changes. We also know that
    families, particularly those who live far away from a military base,
    may feel alone and worried about their loved ones who are deployed,
    injured, wounded or sick.
        In addition to the TRICARE Prime and TRICARE Standard benefit,
    TRICARE beneficiaries who need assistance with depression, stress-
    related illness, chemical dependency, alcohol-abuse problems or other
    related issues should know that TRICARE offers a wide range of mental-
    health care services. Access to those services, also known as
    behavioral health care, is easy and convenient.
        To supplement the TRICARE benefit, the military health system added
    the Mental Health Self-Assessment Program (MHSAP) in 2006. This program
    provides military families, including National Guard and Reserve
    families, Web-based, phone-based and in-person screening for common
    mental-health conditions and customized referrals to appropriate local
    treatment resources. The program includes screening tools for parents
    to assess depression and risk for self-injurious behavior in their
    children. The MHSAP also includes a suicide-prevention program that is
    available in Department schools. Spanish versions of these screening
    tools are available.
        For families who are visiting a loved one who is severely injured,
    wounded or sick, the military health system is developing the Family
    Transition Initiative. Working jointly with the VA, our mission is to
    improve the transition process for families of seriously injured
    inpatient servicemembers who are transferring to VA Polytrauma Centers.
    The Department and VA will recommend a systematic approach to prepare
    and support patients and families during the transition of inpatient
    care between the two departments. We are currently conducting an
    inventory of existing Department and VA family support programs and
    will base recommendations on the programs that work best.
        The Family Transition Initiative is also addressing the
    communications gaps and addressing such issues as allowing family
    members to meet staff members from a new facility before transition. We
    are also addressing the fact that family members may also have health
    care needs while visiting their loved ones. Family members may not be
    eligible for TRICARE or VA benefits, and we must ensure their health
    care needs are met.
        The Department and VA will deliver a report to the Health Executive
    Council with recommendations for the Family Transition Initiative by
    June 2007.
    Casualty Assistance:
        The Department takes very seriously its responsibility to provide
    assistance to families of fallen servicemembers and continues to
    explore new methods, procedures, and policies to enhance the current
    level of assistance. Each Service has its own customs, but all see
    assistance to families of the fallen as a top priority. The Army, Navy,
    and Marine Corps assign a uniformed member to assist the family, while
    the Air Force provides assistance through a full time civilian Casualty
    Assistance Representative and a family liaison officer. The Services
    have developed programs to provide personal assistance as long as the
    families desire contact and stand ready to respond whenever a concern
    arises.
        The Department collaborates with the VA, the Social Security
    Administration (SSA) and multiple non-governmental agencies and family
    advocacy groups to improve support to families. In March 2006, the
    Department published ``A Survivor's Guide to Benefits, Taking Care of
    Our Own''. It was subsequently updated in June and in November. This
    guide is on the Military HOMEFRONT Web site, and is always available in
    its most current version. The guide details the Federal benefits
    available to families of servicemembers who die on Active Duty, to
    include coordinated benefit information from the DOD, VA, and SSA.
        For Service casualty staff and military widows, the Department
    created ``The Days Ahead, Essential Papers for Families of Fallen
    servicemembers'', a tool designed to assist families in organizing the
    avalanche of paper work that is necessary as a family applies for and
    receives Federal benefits as a result of an Active Duty death. Spouses
    who receive ``The Days Ahead'' notebook will also receive a print copy
    of the most recent version of ``A Survivor's Guide to Benefits'' and
    another excellent resource, ``The Military Widow'' by Joanne Steen and
    Regina Asaro; the first book specifically focused on the unique
    challenges women face when they become military widows.
    Transportation of Fallen Loved Ones:
        The Department believes that the return of the remains of our
    fallen to their families must be handled as expeditiously as possible,
    with the utmost care, dignity and respect. In the past, when the return
    of the fallen included air transportation, the primary mode of air
    transportation was scheduled commercial service. With the enactment of
    section 562 of the John Warner National Defense Authorization Act for
    Fiscal Year 2007, effective 1 January 2007, dedicated military or
    military-contracted aircraft is the primary mode of air transportation
    of remains that are returned to the United States from a combat theater
    of operations through the mortuary facility at Dover Air Force Base
    (AFB). Commercial air may only be authorized at the request of the
    person designated to direct disposition. The Department has recently
    expanded this provision to include transportation for all personnel who
    die of their wounds or injuries sustained in a combat theater of
    operations regardless of whether the remains are processed through
    Dover AFB.
        A member of the Armed Forces, in an equal or higher grade, escorts
    the fallen servicemember's remains continuously until arrival at the
    applicable destination. At the arrival airfield, an honor guard detail
    is available to render appropriate honors and participate in the off-
    loading of the flag-draped casket from the aircraft to awaiting ground
    transportation for onward movement to the funeral home or cemetery.
        Since families still sometimes choose the use of commercial air,
    the Department continues to work with the commercial airline industry
    to ensure that all actions are taken to ensure our fallen are handled
    with the highest level of respect. The airline industry responded to
    this request for support in a very positive way. Examples include: seat
    upgrades for escorts for easy exit to perform their duties, airplane
    access for honor guards to participate in the off-loading of the flag-
    draped casket from the aircraft, coordinated access to the airport
    tarmac for the escort, honor guard details, family members, the funeral
    home hearse, and in many cases community based support groups wishing
    to show their respect and participate in the arrival of a local hero.
    When such access to the airplane or tarmac has not been possible
    because of security or safety requirements, several airlines responded
    by producing transport carts dedicated specifically for the movement of
    servicemember remains.
        Recently, the Department initiated an ``Honor Cover'' for the
    standard air tray required in the transport of caskets. The honor cover
    has a rendering of the American flag on the top and the Department's
    seal on each end. This cover provides greater visibility and conveys
    the appropriate level of respect to the fallen while in transit.
    Expedited Citizenship:
        Gaining citizenship for a non-U.S. servicemember is not only a
    satisfying, and often a life-long goal for that individual--it also
    provides a stepping stone for members of the family to become citizens,
    an opportunity that will benefit generations to come. For those who
    serve their country, obtaining citizenship should be achievable in a
    reasonable amount of time. The Department works closely with the
    Department of Homeland Security's U.S. Citizenship and Immigration
    Services (USCIS) to expedite citizenship applications for non-U.S.
    citizens who serve honorably in our Armed Forces. USCIS established an
    office in 2002, dedicated to work all military citizenship
    applications. Since September 11, 2001, nearly 32,000 servicemembers
    have obtained citizenship as of March 19, 2007, and the average
    processing time has been reduced from 9 months to less than 60 days.
    USCIS has entered into an agreement with the FBI to permit the use of
    military member fingerprints provided at the time of enlistment for
    processing military member citizenship applications. This eliminated
    the need for servicemembers to travel, in some cases hundreds of miles,
    to be fingerprinted at a USCIS office and has further reduced
    citizenship application processing time.
        The Department also continues to work closely with USCIS to conduct
    naturalization interviews and swearing-in ceremonies overseas and
    onboard ships. As of March 19, 2007, over 3,400 military members have
    been naturalized at overseas ceremonies conducted since October 1,
    2004.
    Military Severely Injured Center:
        The Department is committed to providing the assistance and support
    required to meet the challenges that confront our severely injured and
    wounded servicemembers and their families during the difficult time of
    transition. Each Service has programs to serve severely wounded from
    the war: the Army Wounded Warrior Program (AW2), the Navy Safe Harbor
    program, the Air Force Helping Airmen Recover Together (Palace Hart)
    program, and the Marine4Life (M4L) Injured Support Program. DOD's
    Military Severely Injured Center augments the support provided by the
    Services. It was established in December 2004 and continues to be even
    more robust today. It reaches beyond the DOD to coordinate with other
    agencies, to the nonprofit world, and to corporate America.
        It serves as a fusion point for four Federal agencies--DOD, the VA,
    the Department of Homeland Security's Transportation Security
    Administration, and the Department of Labor.
        Federal Partners. The Military Severely Injured Center unites
    Federal agencies through a common mission: to assist the severely
    injured and their families.

             The VA Office of Seamless Transition has a full-time
            liaison assigned to the Center to address VA benefits issues
            ranging from expediting claims, facilitating VA ratings,
            connecting servicemembers to local VA offices, and coordinating
            the transition between the military and the VA systems.
             The Department of Labor (DOL) has assigned three
            liaisons from its Recovery & Employment Assistance Lifelines
            (REALifelines) program which offers personalized employment
            assistance to injured servicemembers to find careers in the
            field and geographic area of their choice. REALifelines works
            closely with the VA's Vocational Rehabilitation program to
            ensure servicemembers have the skills, training, and education
            required to pursue their desired career field.
             The Department of Homeland Security's Transportation
            Security Administration has a transportation specialist
            assigned to the Center to facilitate travel of severely injured
            members and their families through our Nation's airports. The
            Center's TSA liaison coordinates with local airport TSA
            officials to ensure that each member is assisted throughout the
            airport and given a facilitated (or private) security screening
            that takes into account the member's individual injuries.

        Nonprofit Coordination. The MSI Center has coordinated with over 40
    nonprofit organizations, all of which have a mission to assist injured
    servicemembers and their families. These nonprofits offer assistance in
    a number of areas from financial to employment to transportation to
    goods and services. Many are national organizations, but some are
    local, serving service men and women in a specific region or at a
    specific Military Treatment Facility. Some of the many organizations
    that are providing assistance are the Wounded Warrior Project, the
    Injured Marine Semper Fi Fund, the VFW, the American Legion, Disabled
    American Veterans, the Coalition to Salute America's Heroes, and, of
    course, the Service Relief Societies. There are hundreds of other
    nonprofits who offer assistance to military families in general that
    are part of the America Supports You network
    (www.americasupportsyou.mil).
    Operation Warfighter:
        The Department sponsors Operation Warfighter (OWF), a temporary
    assignment or internship program for servicemembers who are
    convalescing at military treatment facilities in the National Capital
    Region. This program is designed to provide recuperating servicemembers
    with meaningful activity outside of the hospital environment that
    assists in their wellness and offers a formal means of transition back
    to the military or civilian workforce. The program's goal is to match
    servicemembers with opportunities that consider their interests and
    utilize both their military and non-military skills, thereby creating
    productive assignments that are beneficial to the recuperation of the
    servicemember and their views of the future. Servicemembers must be
    medically cleared to participate in OWF, and work schedules need to be
    flexible and considerate of the candidate's medical appointments. Under
    no circumstance will any OWF assignment interfere with a
    servicemember's medical treatment or adversely affect the well-being
    and recuperation of OWF participants.
        In 2006, 140 participants were successfully placed in OWF. Through
    this program, these servicemembers were able to build their resumes,
    explore employment interests, develop job skills, and gain valuable
    Federal Government work experience to help prepare them for the future.
    The 80 Federal agencies and subcomponents acting as employers in the
    program were able to benefit from the considerable talent and
    dedication of these recuperating servicemembers. Approximately 20
    permanent job placements resulted from OWF assignments upon the
    servicemember's medical retirement and separation from military
    service.
        The core of OWF is not about employment, however; placing
    servicemembers in supportive work settings that positively assist their
    recuperation is the underlying purpose of the program. The Department
    works very closely with DOL's REALifelines program in this effort.
    Heroes to Hometowns:
        The American public's strong support for our troops shows
    especially in their willingness to help servicemembers who are severely
    injured in the war and their ever-supportive families, as they
    transition from the hospital environment and return to civilian life.
    Heroes to Hometowns' focus is on reintegration back home, with networks
    established at the national and State levels to better identify the
    extraordinary needs of returning families before they return home. They
    work with local communities to coordinate government and non-government
    resources necessary for long term success.
        The Department has partnered with the National Guard Bureau and the
    American Legion, and most recently the National Association of State
    Directors of Veterans Affairs, to tap into their national, State, and
    local support systems to provide essential links to government,
    corporate, and nonprofit resources at all levels and to garner
    community support. Support has included help with paying the bills,
    adapting homes, finding jobs, arranging welcome home celebrations, help
    working through bureaucracy, holiday dinners, entertainment options,
    mentoring, and very importantly, hometown support.
        Many private and nonprofit organizations have set their primary
    mission to be support of severely injured veterans. One example, the
    Sentinels of Freedom in San Ramon, California recruits qualifying
    severely injured to their community with ``scholarships'' that include
    free housing for 4 years, an adaptive vehicle, a career enhancing job,
    educational opportunities, and comprehensive community mentoring.
    Through a coordinated effort among local governments, corporations,
    businesses, nonprofits, and the general public, six scholarships have
    already been provided in the San Ramon Valley and in March, Sentinels
    of Freedom announced plans to expand the program nationwide.
        The ability of injured servicemembers to engage in recreational
    activities is a very important component of recovery. We continue to
    work with the United States Paralympics Committee and other
    organizations so that our severely injured have opportunities to
    participate in adaptive sports programs, whether those are skiing,
    running, hiking, horseback riding, rafting, or kayaking. We are also
    mindful of the need to ensure installation Morale Welfare and
    Recreation (MWR) fitness and sports programs can accommodate the
    recreational needs of our severely injured servicemembers. At
    congressional request, we are studying the current capabilities of MWR
    programs to provide access and accommodate eligible disabled personnel.
    National Guard and Reserve Family Support:
        Families who previously had limited exposure to military systems
    now must deal with the likelihood of multiple and longer deployments
    for the servicemember. This past year has seen a maturing of existing
    programs, new initiatives, and integrated support systems to respond to
    the special needs of families, especially National Guard and Reserve
    families located significant distances away from military
    installations. Connecting Reserve Component families with the services
    they need presents a particular challenge. Whether those services are
    family support, child care or transition assistance (including
    assistance for the severely injured), the Department is bridging the
    gap between services provided for Active Duty members and Guard and
    Reserve.
        Per direction in the National Defense Authorization Act for Fiscal
    Year 2007, the Department is designing a regional joint family support
    model. Two critical components of the model involve building coalitions
    and connecting Federal, State, and local resources and nonprofit
    organizations to support Guard and Reserve families. Best practices and
    lessons learned from 22 Inter-Service Family Assistance Committees and
    the Joint Service Family Support Network will guide the planning
    process. Minnesota's, ``Beyond the Yellow Ribbon'' reintegration
    program, researched by the University of Minnesota, will serve as a
    model with a funded Community Reintegration Coordinator position.
    Hawaii and Oregon have volunteered to be models. These are States where
    we can build onto a successful infrastructure to deliver a wide range
    of family assistance to expand our reach to the Guard and Reserve. We
    appreciate the opportunity to bridge the gaps and augment existing
    programs, and thank Congress for recognizing this need.

             THE BACKBONE OF MILITARY COMMUNITY AND FAMILY SUPPORT

        Quality of life programs for servicemembers' and their families'
    lives have made great strides during the past few years. The Department
    recognizes that military members have difficult, complicated jobs to do
    under extremely arduous conditions. We continue to explore ways to
    improve programs in support of quality of life. Any or a combination of
    the following initiatives could raise the quality of life for military
    families and, therefore, affect readiness, recruiting, and retention.
    Financial Readiness:
        The Department considers the personal financial stability of
    servicemembers and their families a significant factor in Military
    preparedness--financial stability equates to mission readiness. As
    such, financial readiness remains a top priority for the Department and
    we are aggressively promoting a culture within the military that values
    financial competency and responsible financial behavior. The
    Department's Financial Readiness Campaign encourages servicemembers to
    achieve good credit, save on a regular basis, obtain good interest
    rates on loans, and take advantage of the opportunity to participate in
    the Thrift Savings Plan (TSP) and the servicemembers' and Veterans'
    Group Life Insurance (SGLI).
        The Financial Readiness Campaign includes partnerships with other
    Federal, corporate, and non-governmental organizations to support both
    military members and their families on how to manage their finances.
    Key techniques include proactive and preventive measures: encouraging
    savings and reducing debt. We know that being free of credit card debt
    is a goal for 79 percent of military spouses who must often hold the
    financial reins of the family during deployment. However, while trends
    in the past couple of years show more servicemembers are able to save
    and fewer are having financial problems, a third of E1s-E4s still
    indicate that they have financial problems. It is important that we
    continue efforts to provide access to cost-effective financial
    readiness tools and products, and protect members from predatory
    lenders that can place servicemembers in a dangerous and sometimes
    unrecoverable spiral of debt. For example, 10 percent of E1s-E4s
    reported they obtained a payday loan in the past year. As we have seen,
    the personal and professional stressors of poor financial management
    can dramatically affect family quality of life, and ultimately, our
    mission readiness.
        Education is our first line of defense. In 2006, the Services
    provided more than 11,800 financial management classes at their
    installations around the world and trained more than 324,000
    servicemembers (approximately 24 percent of the force), as well as
    19,400 family members. Our campaign partner organizations, such as
    those represented by our on-installation banks and credit unions,
    conducted an additional 1,300 classes, serving a total of 60,600
    servicemembers and their families. These classes help equip our men and
    women with the necessary tools to achieve financial freedom and avoid
    the financial traps that befall many of their contemporaries outside of
    the military.
        Our 23 financial readiness partners are invaluable in providing
    both education and counseling to our servicemembers and families and in
    offering affordable, easily accessible financial products. The
    following highlights some of this organizational support:

              -  The Financial Literacy and Education Commission provides
            educational and training materials through the Web site
            www.mymoney.gov. The commission also supports a toll-free
            number and consolidates education and training materials
            available through the Federal agencies that have been widely
            advertised and linked to the Department's and military service
            Web sites.
              -  The InCharge Institute provides access to credit
            counseling/debt management, and publishes a quarterly magazine
            called Military Money in partnership with the National Military
            Family Association.
              -  The National Association of Securities Dealers Foundation
            has funded a multi-year awareness and education program to
            supplement programs provided by the military services. Included
            are multimedia public service announcements through sources
            such as Armed Forces Radio and Television Services, Service
            command information publications, magazines and radio; an
            interactive Web site--www.saveandinvest.org; sponsorship of a
            scholarship program for military spouses through partnership
            with the National Military Families Association to accredit
            them as `financial counselors' in return for volunteer hours in
            military communities; and education for military service
            financial counselors and educators.
              -  Our military relief societies, of course, continue to
            provide outstanding educational materials and counseling, as
            well as financial assistance when our servicemembers are in
            need.

        As we push our campaign into 2007, the Department provides free
    Federal and State on-line tax preparation and filing through Military
    OneSource for all members regardless of component or activation status.
    This service includes free telephonic access to trained financial
    professionals who can answer many of the tax questions that our
    servicemembers and families may have. The Department encourages
    servicemembers and their families to use the Military OneSource free
    tax preparation service and to add any refunds to a savings account.
        The Department sponsored ``Military Saves'' week in February, in
    conjunction with the Consumer Federation of America's nationwide
    ``America Saves'' campaign. This is an intense week of training and
    encouragement for our military members and families to start reducing
    their debt and saving for their future. Members can set a savings goal
    by registering on www.militarysaves.org.
    Domestic Violence:
        Domestic violence statistics are slightly lower than last year. The
    Department remains steadfast in its commitment to strengthen its
    response to domestic violence and continues to make substantial efforts
    to improve training of key staff. During the past year, we conducted
    six domestic violence training conferences, three of which were offered
    to joint gatherings of commanding officers, Judge Advocates, law
    enforcement personnel, and victim advocates. These conferences
    addressed each group's responsibilities in responding to domestic
    violence in accordance with new domestic violence policies issued by
    the Department.
        We continue implementation of the restricted reporting policy for
    incidents of domestic violence. This policy offers victims the option
    of seeking medical and victim advocacy assistance without making a
    report to the victim or abuser's commander or law enforcement. This
    confidential assistance is crucial for victims who may be concerned
    about their safety, the military career of the family-member offender,
    or the family's financial welfare. The Department continues to expand
    its victim advocacy program, which provides access to on-call victim
    advocates and shelters to assist victims of domestic violence.
        During the past year we also launched a Web based domestic violence
    training curriculum for commanding officers that addresses their
    responsibilities when responding to incidents of domestic violence.
    Commanding officers may now log-on anywhere in the world and receive
    training on responding to domestic violence.
        In partnership with the Family Violence Prevention Fund, we
    developed and launched a national public awareness campaign to prevent
    domestic violence. The campaign is designed as a prevention message to
    educate Service men and women and their families about domestic
    violence and increase awareness of domestic violence prevention
    resources.
        In partnership with the Office on Violence Against Women of the
    Department of Justice, we have continued several joint initiatives,
    including training for victim advocates and law enforcement personnel.
    Additionally, we are conducting domestic violence coordinated community
    response demonstration projects in two communities near large military
    installations. The goal of the projects is to develop a coordinated
    community response to domestic violence focusing on enhancing victim
    services and developing special law enforcement and prosecution units.
    Finally, we are participating in the President's Family Justice Center
    Initiative. The initiative provides funding through the Office on
    Violence Against Women for 15 centers in select communities nation-
    wide. The Department partnered with four centers near military
    installations to address domestic violence.
    Military Children's Education:
        The Department shares a vested interest in quality elementary and
    secondary education for military children along with our partners in
    State and local education systems. One of the major factors in
    sustaining the All-Volunteer Force is providing quality educational
    experiences for military children.
        The Department's schools have high expectations for the over 91,000
    students enrolled in our 208 schools located in 12 countries, 7 States,
    and 2 territories. The Department's worldwide school system serves as a
    model education system for the Nation and is without question a
    ``career satisfier'' and high priority for servicemembers and families.
    The Department's students are among the highest performing in the
    Nation as measured by norm-reference assessments like the TerraNova and
    the Nation's report card, the National Assessment of Education
    Progress. Our students consistently score above the national average at
    every grade level and in every subject area. A key ingredient to this
    success is the partnership that exists among schools, parents, and
    military commands that focus on superior student achievement.
    Department schools are also leading the Nation in closing the
    achievement gap between white and non-white students. Diversity is one
    of the strengths of the system. African-American and Hispanic students
    in DODEA schools consistently outperform their counterparts in the 50
    States in reading and math.
        The Department's school system has responded to the President's
    National Security Language Initiative, which promotes the study of
    critical need languages in grades K-12. The DODEA has launched a
    foreign language program that will initially introduce strategic
    foreign languages (e.g., Mandarin Chinese) to selected elementary and
    secondary schools in the DODEA system.
        Public Law 109-364 recently directed the Department to ease the
    transition of military students from attendance at DOD schools to
    attendance in schools of local educational agencies (LEAs). DODEA will
    share their expertise and experience in developing rigorous and
    successful academic programs, curriculum development, teacher
    professional development, and distance learning technology capabilities
    with stateside school districts impacted by base closures, global
    rebasing, and force restructuring. The Department identified 17
    communities in 14 States that will experience a large number of
    students transitioning into their schools because of large scale
    relocation and rebasing. DODEA has begun building partnerships with
    affected stateside school systems to assist them in developing
    instructional programs similar to those in the DODEA schools. The
    ultimate goal of the program is to ensure that a high quality
    educational program is provided to all military dependents living both
    inside and outside the gates of military installations.
        As an initial step in sharing best practices with LEAs, the
    Department sponsored a Conference on Education for Military-Connected
    Communities, which brought together teams comprised of military,
    civilian, school and business leaders from the 17 communities that will
    experience an increase in military dependent students due to the large
    scale rebasing effort. Over 200 participants heard from experts who
    provided participants with a list of resources for their communities to
    using during transition.
        The Department is also sharing information on the unique
    characteristics of military dependent students with military and
    community leaders, military parents and school superintendents who work
    with these students. To communicate effectively with military parents,
    teachers, and students, the Department has included helpful information
    on our Web site: www.militarystudent.org about the impact of
    deployments on children, resources to assist in separations and
    transitions, and best practices in quality education. A toolkit was
    developed by a joint service task group and disseminated on compact
    discs and the Web site to help families, military commanders and school
    leaders understand education options and help schools provide a smooth
    transition for military dependent students.
        Along with toolkits and outreach through DODEA, the Department is
    making the Johns Hopkins Military Child Initiative (MCI) available to
    military-connected communities and LEAs. The John Hopkins Center for
    Schools Impacted by Children of the Military focuses on meeting the
    needs of children and youth least likely to feel connected to school
    (i.e., children of military families who live in highly mobile
    circumstances). Their approach is being shared with impacted schools
    and military parents to improve student success, school/family/
    community partnerships and student engagement.
    Family Members with Special Needs:
        The Exceptional Family Member Program has operated for over 20
    years to ensure that the needs of family members who have specialized
    medical requirements or who require special education are considered
    during the assignment process. The EFMP identifies family members who
    have specialized medical or educational needs, and documents their
    specific requirements (medication, specialty care, special education
    requirements, physical accommodations). The military health system and
    the DOD schools coordinate all overseas assignments to ensure that the
    necessary medical and educational services are available to meet the
    family members' needs prior to approving overseas travel.
        Exceptional Family Member Program managers operate in all Army and
    Marine Corps family centers to assist military families with special
    needs. The EFMP managers help families identify and access resources.
    Additionally, the Army has instituted a new respite care program to
    mitigate deployment related stress for families with special needs.
        The Department has published the DOD Special Needs Parent Toolkit,
    which is available on-line at the MilitaryHomefront Web site and
    through Military OneSource. The toolkit provides families with an
    introduction to services available to them both through the military
    and through State and local community programs. We have provided a
    series of Military OneSource webinars aimed at families with special
    needs that have covered topics such as the Parent Toolkit, record
    keeping, advocacy, and moving with a special needs child. The
    MilitaryHomefront publishes a monthly newsletter to families with
    special needs who have registered for the newsletter. The newsletter
    provides families with up to date information about programs and
    services available to them, and about other issues of interest to
    families with special needs.
    Spouse Education and Careers:
        Trying to sustain a career while serving the country is a major
    issue facing military spouses. Nearly half of all spouses report their
    job or education demands were a problem during their spouse's
    deployment. Military spouses are not unlike their civilian counterparts
    as they are major contributors to the family's financial well-being.
    The majority of the 700,000 military spouses of Active Duty personnel
    are in the civilian workforce. In the 2006 Survey of Spouses,
    regardless of their current employment status, 77 percent of spouses
    report they want and/or need to work to supplement their family income
    or stay in the career of their choice. The vast majority (83 percent)
    of spouses report that developing a career is a personal goal. Perhaps,
    even more important to the Department, research indicates that a
    military spouse's support for a career in the Armed Forces is a top
    factor in the retention decision of a married servicemember.
        Unfortunately, military spouses are a disenfranchised population as
    they are generally not included in our Nation's major labor and
    workforce development opportunities. Frequent relocations result in
    denial of opportunities ranging from eligibility for in-State tuition
    and State unemployment compensation to achievement of tenure. For those
    spouses whose employment requires costly certification and/or licensure
    requirements, the State-to-State moves are enormously expensive,
    sometimes with the expense of discontinuing a career. The unemployment
    rate for military spouses, at 12 percent, is much higher than the
    national unemployment rate. Further, our research shows that military
    spouses earn about $3.00 per hour less than their civilian
    counterparts.
        At the same time, military spouses are better educated than their
    civilian ``look-alikes'', as seven of ten spouses have some college
    education. While about 20 percent of spouses are enrolled in post-
    secondary schools, another 51 percent would like to be in school.
    However, the overwhelming majority of these spouses, nearly three-
    fourths, cite the cost of education as the reason they are not in
    school.
        While the Department is committed to helping military spouses
    pursue rewarding careers and to achieve educational and training goals,
    we realize that these issues can only be addressed by partnering with
    the States, the private sector, and other Federal agencies. We are
    actively working with DOL to ensure military spouses can receive
    education and training support via Workforce Investment Act funds.
    Further, we are partnering with DOL and national associations around
    careers in high-growth industries with mobile and portable careers such
    as medical transcription, financial services, education, and real
    estate. The DOD/DOL collaborative Web site (www.milspouse.org) which
    assists spouses with resume development, locating careers, identifying
    available training and linking to One Stop Career Centers, continues to
    be a great resource for our military spouses with almost 7 million Web
    site hits in fiscal year 2006.
        When asked what would have helped them find work after their most
    recent permanent change of station (PCS) move, approximately a third of
    those spouses surveyed in the 2006 Survey of Spouses indicated that
    easier transition of certifications would have helped, and 27 percent
    indicated that financial help with transferring certifications was
    lacking. We have identified a range of popular spouse careers that have
    State-specific licensing requirements and have designed strategies to
    address them, initially focusing on teaching and real-estate. Six
    States have now adopted the American Board for Certification of Teacher
    Excellence (ABCTE), a national passport teaching credential. Spouses
    with an ABCTE credential will not have to be re-certified in these
    States, which will result in less unemployment time. The Department
    also implemented the Spouse-to-Teacher program that supports military
    spouses in their pursuit of K-12 teaching degrees and positions in
    public and private schools. We are also working closely with colleges
    and universities to offer more scholarships, grants, and reduced
    tuition for servicemembers' spouses.
        Re/MAX launched a program, Operation Re/MAX, which provides
    military spouses the opportunity to achieve a career in the real estate
    industry. Since August 2006, there have been almost 2,000 inquiries
    from military spouses and there are over 800 Re/MAX offices offering to
    hire military spouses.
        Our efforts to raise employer awareness through our partnership
    with military.com, a division of monster.com, have proven to be a great
    success. Via this Web site portal: www.military.com/spouse, 155,000
    military spouses have posted their resumes and conducted over 3 million
    job searches of Federal and private sector jobs. There are now over 300
    spouse-friendly employers who are actively recruiting military spouses
    for their vacant positions; these organizations can post jobs at no
    cost and may search this exclusive database for military spouse
    candidates. Spouses may search public and private sector jobs by
    military installation locations.
    Advisory Groups:
        At the OSD level, we take advice and counsel from internal
    organizations on which military families serve, to include the DODEA
    advisory councils on dependents education, a commissary council and an
    exchange council. The Defense Advisory Committee on Women in the
    Services (DACOWITS), whose charter includes quality of life support and
    membership includes military spouses, has advised us on such programs
    as child care services.
        At the Services level, the Army Family Action Plan (AFAP) is a well
    organized grass roots program that has reached down to installation
    level and brought issues to Army and OSD leadership for the past 25
    years. The AFAP process, which is highly prized and respected within
    the Department, has resulted in numerous legislative and policy changes
    impacting military families. Both the Army and the Marine Corps have
    chartered family readiness advisory councils, whose membership is
    comprised solely of military spouses and volunteers. These councils
    assess and recommend solutions for evolving family issues.
        Finally, several non-governmental organizations serve to advocate
    for military families and influence family policies. Prominent among
    these is the National Military Family Association who has an excellent
    track record of working with Congress as well as with the Department.
    Youth Partnerships:
        Last year, eKnowledge Corporation, a leading supplier of
    interactive test preparation products for college entrance exams, along
    with a group of patriotic NFL players, donated $6.9 million to pay for
    multimedia SAT/ACT test preparation products worth $200 to military
    servicemembers and their families. During 2006, more than 48,000 free
    SAT/ACT multimedia CD & DVD test preparation programs were donated to
    servicemembers and their families worldwide. Over the past several
    months, eKnowledge and the NFL players have received tens of thousands
    of letters and emails from servicemembers expressing appreciation for
    the valuable SAT/ACT test preparation projects. Based on the tremendous
    response from servicemembers and their families, eKnowldege and the
    participating NFL players announced that they will extend the free SAT/
    ACT donation program through 2007, with a total financial commitment of
    $10 million.
        It is with great pride that Military Youth programs worldwide can
    now take advantage of their affiliation with the Boys & Girls Clubs of
    America by participating in the Major League Baseball  S.T.A.R. Award
    program. This MLB award program is designed to recognize youth ages 10
    to 18 year-round for their youth sports, fitness, and social recreation
    achievements. Any youth who demonstrate the four MLB S.T.A.R. Award
    characteristics: Sportsmanship, Team spirit, Achievement and
    Responsibility is qualified to be nominated. Whether on the baseball
    field, at the swimming pool, in the games room or in the dance studio,
    it is these attributes that help our military youth succeed at anything
    they do regardless of where they live around the world. Each
    participating youth program will be allowed to select one outstanding
    youth who best embodies all four characteristics. That youth will
    receive a trophy and become eligible for State, regional, and national
    competition. Later this year, six deserving youth, one from each of
    BGCA's five regions and an overseas military site representative, will
    be selected to attend the MLB All-Star Game. One national winner will
    be invited to the MLB World Series game.
    State Liaison Initiatives:
        In 2004, the Department of Defense approached the National
    Governors' Association to request their assistance in supporting those
    aspects of quality of life for servicemembers and their families that
    could be influenced best through the actions of State governments. In
    the past 2 years, the Department has found Governors and State
    legislators have embraced these opportunities to show their support for
    servicemembers and their families.
        The Department has concentrated discussions on 10 key issues at the
    State level: (1) assistance to Guard and Reserve members and families,
    (2) assistance to the severely injured, (3) in-State tuition rates for
    servicemember and their families, (4) school transition assistance for
    children of military families, (5) employment assistance for military
    spouses, (6) unemployment compensation for military spouses, (7) limits
    on payday lending, (8) absentee voter assistance, (9) growth of foreign
    language education, and (10) increases in child care assistance for
    Guard and Reserve families.
        Governors and other State policymakers have taken these issues
    seriously and provided support through State resources. For example,
    the States are providing over 720 benefits to members and families of
    the Guard and Reserve--an increase of over 200 benefits since 2004; for
    example, a total of 30 States (an increase of 9) are providing in-State
    tuition rates to servicemembers and their families while assigned to a
    State as a non-resident, and continuing this support for family members
    enrolled in school if the servicemember is reassigned out of State.
    Additional information on the progress of the key issues is provided to
    State policymakers and others at www.USA4MilitaryFamilies.org.
        Several Governors have established councils and committees to
    advise them on establishing initiatives to support the military
    community within their States. Many Governors have also initiated
    legislative packages to enhance quality of life for servicemembers and
    their families on a number of the 10 key issues.
        Additionally, the Department is partnering with national
    associations representing State governments to obtain support. For
    example, the Department is working with the Council of State
    Governments to establish an interstate compact designed to assist
    children of military families with the challenges that come from
    frequent transfers between school systems. This compact is designed to
    ameliorate differences in school systems ranging from differing age
    requirements to start kindergarten through varying requirements to
    graduate from high school.
        The Department has found its collaboration with Governors and State
    legislators to be an important aspect to supporting servicemembers and
    their families who make daily sacrifices to fulfill their commitment to
    defending the Nation. We anticipate these collaborative relationships
    will continue to produce important benefits for servicemembers and
    their families.
    Morale Welfare and Recreation (MWR):
        MWR programs enhance the social fabric of a military community by
    providing activities normally found in ``hometown communities,'' such
    as libraries, fitness centers, bowling, golf, parks, and sports fields.
    These programs and activities impact the quality of life of our
    military families each and every day.
        Fitness Programs
        All of the military Services continue to expand robust fitness
    programs designed to sustain a physically fit, healthy force. Long term
    plans are being made to modernize the fitness infrastructure. The
    Services requested 79 fitness center construction projects between
    fiscal year 2007 and fiscal year 2013.
        Libraries
        Virtual resources, such as the Army's General Library Information
    System, and the Air Force's Learning Resource Centers provide access to
    academic materials regardless of location.
        Five Department recreational libraries will participate in the
    National Endowment for the Arts (NEA) ``Big Read'' initiative. The Big
    Read is a community reading project which began 1 year ago and is
    expanding to encompass military bases located in close proximity to
    civilian communities that have already agreed to participate. These
    communities were provided funding by the NEA for a month long festival
    in which interested participants are encouraged to read the same novel.
    Military bases will be provided 100 copies of the selected books for
    base library circulation.
    Exchanges and Commissaries:
        The commissary and exchange are among the most valued contributors
    to the quality of life of our servicemembers and their families. They
    provide a safe and convenient community hub, particularly in overseas
    areas.
        Commissaries would help military families save over 30 percent on
    grocery and household necessities, even including the commissary
    surcharge and commercial sales taxes. The Defense Commissary Agency
    makes sure that familiar name brands are available for military
    families at active duty installations around the world. The
    Department's challenge is to sustain the value of the commissary to our
    servicemembers without increasing the cost to the tax payer. The
    Defense Commissary Agency, with oversight by the Commissary Operating
    Board, is becoming a state-of-the-art retail enterprise and continues
    to make steady progress toward becoming increasingly efficient and
    effective at delivering the benefit. Commissary customer satisfaction
    continues to surpass the supermarket industry. Moving forward, DeCA
    will pursue new ways to support military families who don't live on or
    near military installations and explore cooperative efforts with the
    military exchanges that enhance overall quality of life.
        The Armed Service Exchanges provide military families with
    merchandise and services at a 16 to 20 percent savings, not including
    sales tax savings, and provide over $300 million to help support
    morale, welfare and recreation programs. The Exchanges operate on
    military installations, on board ships, in deployed locations,
    contingency operations, disaster relief areas, and through catalog and
    internet shopping. The Exchanges are re-engineering using technology--
    independently and with each other--to improve value to their customers
    and to lower operating costs. Moving forward, the exchanges are
    concentrating on improvements to logistics, systems, and supply chain
    management, where there are many opportunities for cooperative efforts.

                                   CONCLUSION

        The Social Compact, published in 2002 and modernized in 2004,
    reiterated the compact between the Department of Defense, its
    warfighters, and those who support them--one that honors their service,
    understands their needs, and encourages them to make national defense a
    lifelong career. The array of quality of life programs covered by the
    Social Compact recognizes the challenges of military life and the
    sacrifices servicemembers and their families make in serving their
    country. The partnership between the American people and the noble
    warfighters and their families is built on a tacit agreement that
    families also serve. Our military families are the heart and soul of
    our troops on the battlefield. Without a doubt, families also serve and
    sacrifice.

        Senator Ben Nelson. Thank you, Mr. Secretary.
        Dr. Davis?

    STATEMENT OF LYNDA C. DAVIS, DEPUTY ASSISTANT SECRETARY OF THE
                   NAVY FOR MILITARY PERSONNEL POLICY

        Dr. Davis. Thank you, Senators.
        Chairman Nelson, Chairman Akaka, Senators Graham and
    Chambliss, thank you for the opportunity to speak with you
    today on behalf of the Department of the Navy. I'll be speaking
    to you about the Navy and the Marine Corps, as I have
    responsibility for oversight of both services, their Active
    Duty personnel, and the support for their families.
        I'd like to mention, also, that I'm speaking as a former
    soldier who was deployed and had to have the experience of my
    son and, at that time, my two sons and my spouse react to my
    deployment, also, as someone who chose to curtail her military
    career at the point at which we adopted a child, and as someone
    who's a very proud mother of a member of the Pennsylvania Army
    National Guard. It's my honor to be here today.
        You raised several questions about the effectiveness of our
    quality-of-life programs, and I'd like to address those, just
    briefly. But, first of all, I think it's important to discuss
    something Senator Akaka alluded to, in terms of the community
    support and what constitutes family support.
        We believe, in the Department of the Navy, that support
    services are important to be delivered before, during, and
    after deployment, depending on the specific needs of the
    family, but they're delivered in concentric circles of care.
    They start at the unit level. That is the level, after all, at
    which the commander is the most aware of the requirements of
    the individual sailor, soldier, in our case, or marine, and
    also at which we have unique special programs, like the Navy
    Ombudsman Program and the Marine Corps Key Volunteer Programs.
    Our commanders are very engaged in family support; in fact,
    extending letters regularly to the family members from Iraq,
    with a variety of information, including some on predatory
    lending.
        As we move out from this concentric circle of family
    support beyond the unit, it extends to the installation, and
    that's where you have the excellent programs through Fleet
    Family Support Services or the Marine Corps Service Centers. We
    also draw on the support that's provided through the Navy or
    the Marine Corps, generally, through things such as our 145
    Navy Reserve Centers that are in every single State. Each of
    your States have one of those centers that serve not only the
    Navy reservists, who are geographically remote, their families
    are oftentimes, but it also serves the Marine Corps. We
    consider them to be purple assets, in that they're available to
    any servicemember. We certainly see that this concentric
    circles of support for the family would not be possible without
    all the assets Mr. Dominguez mentioned, in terms of those
    directly from the DOD.
        Also, we feel that the support is essential to the family
    from the other Federal agencies, such as the Department of
    Veterans' Affairs (VA) and Department of Labor, and also from
    State agencies, such as the State rehabilitative directors, if
    that becomes necessary during a member's service.
        Finally, our partnership in these concentric circles of
    care, or what I like to allude to as a web of inclusion for the
    family, can't be achieved without our veterans benefit
    organizations, our veterans service organizations, and our
    community-based organizations. So, they are essential for us to
    provide the full continuum of care to our family members.
        Addressing the effectiveness of our quality-of-life
    programs, we also had a recent Navy spouse survey that showed
    that 59 percent of enlisted spouses, and 81 percent of officer
    spouses, their family members felt that they were prepared for
    deployment; however, those numbers are not quite sufficient to
    what we'd like, and we are engaging in making sure that our
    deployment support is especially strong for unique communities
    that experience a high operations tempo (OPTEMPO) personnel
    tempo (PERSTEMPO), or our high-impact communities. That would
    be groups like the corpsmen, the 8404s who deploy with the
    Marines, our SEAL communities, and our individual augmentees.
    Those and a few others experience high stress, and we need to
    make sure they receive all the support they need.
        In keeping with looking at our effectiveness, our Secretary
    has recently, in March, instituted a Department Inspector
    General (IG) assessment of all facilities, health care, medical
    care, and administrative activities that relate to support for
    those in combat during deployment, for those wounded, and for
    the families. That is ongoing, in addition to the IG reviews of
    the quality-of-life programs when they visit the installations.
        The Marine Corps is also doing a quality-of-life survey,
    this year, which they administer regularly, to make sure that
    we're keeping pace with the effectiveness of our programs.
        The stresses of deployments was another issue you raised in
    your letter of invitation. To effectively operate this web on
    inclusion for quality-of-life I referred to, we recognize that
    there are special stresses during deployment, and those
    stresses have to do with not only the general cycle-of-life
    issues, like, ``Are you aware of your benefits?'' but, because
    of the high OPTEMPO and PERSTEMPO, there's additional stresses,
    particularly to the dependent children and the spouse. So, we
    have programs that we have, for instance, Senator Inhofe
    mentioned the childcare issue, and I'm conducting an assessment
    of the military construction (MILCON) prioritization of funds
    for childcare and other quality-of-life programs right now to
    make sure that it does not get shortchanged in our requirements
    for our primary mission, which is defense.
        Also, when there is a deployment, we recognize that the
    children oftentimes do exhibit stress reactions. We have, at
    our military treatment facilities, our 60 Fleet Family Support
    Centers and our 18 Marine Corps installations, a triage
    approach to making sure that if we haven't thoroughly been able
    to prevent challenge to the child, in terms of a stress
    reaction, that they're seen immediately by the mental health
    civilian and military professionals in mental health, and, if
    necessary, they're referred through TRICARE, to specialists in
    the community.
        The Marine Corps Lifestyle Insights, Networking, Knowledge,
    and Skills program also provides assistance to family
    dependents for preparation for the 15- to 17-year-old children
    for the challenges of deployment. The Navy and Marine Corps
    partners with the Boys and Girls Clubs to provide youth
    programs for them so that they're active and engaged with peers
    during the deployment cycle.
        We also are very appreciative of the relationship with the
    Association for Child Care Resources and Referral Agency, which
    has allowed us to have additional childcare to support the
    spouse of the deployed individual during the times when they
    may be employed or just need a break.
        Financial hardships was an issue that was mentioned. We
    recognize this is a greater challenge during deployment,
    oftentimes. Our Navy-Marine Corps Relief Society is an
    essential partner with us, and they provide grants to parents
    of the wounded, for instance, on invitational travel orders.
    They provide support for spouses and families who have lost
    wages. In Hawaii, for instance, the Fleet Family Support at
    Pearl Harbor, in order to address financial hardships, has a
    Million Dollar Sailor program that they have a special 2-day
    program to provide education and consumer awareness issues.
    Predatory lending is one of the issues they specifically
    address. The Navy leads in enrollment of Active Duty sailors in
    the Thrift Savings Plan.
        Finally, I'd just like to wrap up my comments by saying
    that, when we discuss families, I like to emphasize that
    families are not simply the spouses and dependent children. As
    I've been able to visit, especially, those who are combat
    wounded at Bethesda and other medical treatment facilities,
    I've been able to see the parents. A lot of our marines are
    single, and the family is their nondependent parent. Sometimes,
    in our community of care for the family or the wounded
    individual, that may even extend to siblings or to close
    friends. So, I think we have to look at what constitutes the
    notion of a family.
        I thank you very much for your leadership and your caring
    and our joint commitment as we work to make sure family support
    services are quality, and delivered on time.
        Thank you.
        [The prepared statement of Dr. Davis follows:]

                     Prepared Statement by Dr. Lynda Davis

        Chairmen Nelson and Akaka, Senators Graham and Ensign,
    distinguished members of the Personnel and Readiness & Management
    Support Subcommittees, thank you for the opportunity to appear before
    you today.
        Support and services for our Navy and Marine Corps families is a
    fundamental function of the Department of the Navy (DON) and the
    cornerstone to ensuring quality of life and mission readiness of our
    sailors and marines. Family support is a DON Objective recently
    reinforced by the Secretary of the Navy, the Chief of Naval Operations
    and the Commandant of the Marine Corps in a 23 August 2006 tri-signed
    memo. Its realization is supported not only by the Services but through
    a network of partnerships with our Veterans Service Organizations,
    Veterans Benefits Organizations and Community Based Organizations.
    Successful family support programs require this ``web of inclusion.''
        The DON has outstanding family support programs to assist our
    families as they navigate through the military life cycle. Our programs
    address everyday life issues through services such as life skills
    education classes, spouse employment assistance, counseling services,
    information and referral, relocation and transition assistance, as well
    as the specialized assistance needed before and after deployment and
    when a sailor or marine is wounded. Key to the delivery of this myriad
    of family support services are the Navy and Marine Corps delivery
    centers. The Navy has 60 delivery sites serviced by a Fleet and Family
    Support Center (FFSC) or a satellite office. The Marine Corps Community
    Services (MCCS) provides Marine and Family Service assistance at all of
    their 18 installations. I'd like to highlight a few of the programs we
    offer our families.

                    OMBUDSMAN/KEY VOLUNTEER NETWORK PROGRAMS

        The Navy's Ombudsman Support and the Marine Corps' Key Volunteer
    Network (KVN) and Lifestyle Insights, Networking, Knowledge and Skills
    (L.I.N.K.S.) Programs are important resources for our families,
    especially during deployments. The Navy currently has approximately
    2,200 trained Ombudsmen and the Marine Corps has approximately 3,000
    KVNs. Ombudsmen and key volunteers facilitate the flow of information
    between commands and family members. The Navy's recently revised
    Ombudsman Instruction and Manual expands training for our Ombudsmen to
    include providing assistance to families of sailors who have been
    deployed as Individual Augmentees (IAs) as well as information on how
    to recognize combat operational stress and resources available to
    families requesting assistance. To support the enhanced training needs
    of the Ombudsman Program, the Navy provides priority child care for
    spouses who attend required Ombudsman training.
        For Reserve families, the Marine Corps KVN and L.I.N.K.S., as well
    as the Navy Ombudsmen, provide training guides to address Reserve
    families' remote access requirements. These special military spouse/
    family volunteer initiatives have attracted the support of many Navy
    and Marine Corps national service organizations (e.g., Navy-Marine
    Corps Relief Society) who are important service delivery partners.

                               NEW PARENT SUPPORT

        Our FFSCs and Marine and Family Service Centers have programs in
    place for new parent support and training. Parenting for a young couple
    can be daunting in conjunction with the rigors of military life, so the
    family centers provide educational programs to assist sailors, marines,
    and their spouses in adjusting to parenthood. About 1,500 parents are
    served per year through these programs.

                            CHILD AND YOUTH PROGRAMS

        Taking care of our young family members requires a broad spectrum
    of programs and dedicated, professional staff. The DON offers child
    development programs, school-age care and youth programs. To meet the
    unique needs of our children and youth coping with deployed parents, we
    have partnered with community based organizations and programs such as
    ``Military Child Care in Your Neighborhood'' for children ages zero to
    5 years and the ``Mission Youth Outreach Program'' for children ages 6
    through 12. For parents who work extended hours, shift work, or serve
    as watch standers, Navy and Marine Corps have expanded child care
    facility hours of operation on base and provide extended child care
    opportunities through our family child care homes. Options include
    emergency drop-in child care at no or reduced cost, respite care for
    parents needing some time away from their children and our Navy 24/7
    Child Care Homes located in Norfolk and Hawaii. Both Navy and Marine
    Corps have also been able to provide spaces through temporary modular
    child care center facilities funded by your support of DOD's emergency
    intervention program. Navy and Marine Corps also have strong programs
    reaching out to our youth. We are affiliated and very active with the
    Boys and Girls Clubs of America. The Navy is providing teen employment
    opportunities during summer months with our on base programs such as
    our child development and youth centers, morale, welfare and recreation
    programs and the Navy's Fleet and Family Support Centers.

                      FAMILY MEMBER EMPLOYMENT ASSISTANCE

        Due to the mobile lifestyle and expeditionary roles of our Sailors
    and Marines, our spouses face unique employment challenges. We
    recognize that spouse employment is a key quality of life issue as well
    as a retention consideration. Our Navy and Marine Corps family centers
    provide an employment assistance program that includes workshops on the
    status of the current labor market, salary and wage trends in
    particular areas, career counseling, resume writing, job interview
    techniques and job searches.

                            PROFESSIONAL COUNSELING

        The Navy FFSCs and the Marine and Family Service Centers provide a
    range of counseling services for families to assist them in coping with
    deployment, everyday issues, and the special challenges of a mobile
    force. Our centers have licensed counselors who provide short-term,
    individual, couples, family and group counseling to address
    relationships, crisis intervention, stress management, substance abuse,
    occupational issues, as well as grief support after the loss of a loved
    one. We are experiencing an increase in counseling services to families
    during the post-deployment phase. In support of the increased
    deployment and longer deployment cycles, these counseling services are
    an invaluable supplement to the counseling services provided by our
    uniformed mental health personnel.

                               DEPLOYMENT SUPPORT

        Our centers play a key role in preparing our families for
    deployment. Pre-, mid- and post-deployment programs are offered to
    sailors, marines, and their families. The Navy sends ``return and
    reunion'' teams out to meet ships returning from deployment. The teams
    stay with the ship until it arrives at its home port. These teams
    provide sailors and marines a variety of programs to include: how to
    reintegrate into their families, the techniques of stress management,
    how to adjust to a new baby, and money management. The Navy FFSP is
    working with our Special Warfare and Expeditionary Forces (e.g., SEALs)
    to place support staff onsite to assist families in these high
    operational tempo (OPTEMPO) communities. The FFSCs are now providing
    services to civilian families who have a civilian deployed spouse in
    support of the global war on terrorism.

                             INDIVIDUAL AUGMENTEES

        Many sailors and marines are supporting the global war on terrorism
    when deployed or mobilized as IAs. The Navy has established an
    Expeditionary Combat Readiness Center within the Naval Expeditionary
    Combat Command to serve as a primary interface with IAs and their
    families. We continue to address key issues of predictability and
    stability for our Service families, especially those of the IAs. The
    Navy FFSP has developed IA handbooks for both the commands that are
    deploying sailors as well as for their families. These comprehensive
    handbooks provide information on how to successfully manage these
    deployments, resources for assistance, and guidance provided to
    families of all deployed servicemembers on recognizing the signs of
    Combat Stress and Post Traumatic Stress Disorder. Again, the Navy
    provides priority child care for families of IAs when they attend
    command-sponsored meetings.

                          CARE FOR FAMILIES OF WOUNDED

        Our family support programs are expanding in real time to meet the
    needs of our wounded sailors, marines, and their families. Caring for
    sailors and marines who have been injured, sometimes very severely, is
    requiring knowledge on medical care, administrative processes, and
    rehabilitative services that has never before been needed by our
    families and their loved ones. Additional programs and resources for
    our injured and their families include: the Navy Safe Harbor program
    and the Marine Corps Wounded Warrior Regiment (Marine 4 Life). In
    addition to these two cornerstones of service care and continuity
    throughout the treatment process, the Marine Liaisons based in our
    Military Treatment Centers provide personalized support for injured
    servicemembers and their families, helping them navigate the continuum
    of care from inpatient to outpatient status and from the DOD Military
    Treatment Facility to the VA facility. As an example of our ongoing
    partnerships with non-governmental agencies, the Navy-Marine Corps
    Relief Society is a key partner providing an important ``Visiting Nurse
    Program.'' The visiting nurses go to the homes of our wounded and
    provide education and arrange for respite care for family members.

                              FINANCIAL MANAGEMENT

        Because our Services are comprised of many young members who may
    not yet have sound financial management skills, financial readiness is
    an important part of military readiness. Ensuring families are
    financially stable prior to deployment enhances mission readiness for
    our sailors, marines, and their families. Our family support centers
    offer robust personal financial management programs that provide
    education, training and counseling emphasizing long-term financial
    responsibility. DOD and the Services have developed partnerships with
    Federal, corporate and private organizations to assist families in
    managing their finances. Training for financial responsibility begins
    at recruiting commands and extends throughout the servicemember's
    career. Navy-Marine Corps Relief Society, Navy Mutual Aid, and our
    Veteran's Service Organizations provide financial assistance to
    families who may experience financial difficulty.

                              ADDITIONAL RESOURCES

        Since family needs may arise at anytime of the day or night, DOD
    and the DON have numerous Web sites and hotlines to help fill the gap.
    An excellent resource is a Web site created by the Deployment Health
    Clinical Center which provides services and resources online as well as
    by phone to help close the gap for families who may not be able to
    access family support centers. Both the Navy and Marine Corps family
    centers have robust Web sites easily accessible by families. The links
    are: Navy--www.ffsp.navy.mil. Marine Corps--www.usmc-mccs.org/family.

                                   CONCLUSION

        Department of the Navy family programs are a vital part of our
    overall personnel readiness and are key to recruiting and retention.
    When a sailor or marine knows that his/her family is being cared for he
    or she can concentrate on their mission. This is the primary objective,
    thus our sailors, marines, and their families will continue to have our
    commitment to the highest levels of the full range of quality support
    services. The DON will provide Navy and Marine Corps families the
    support programs to help them cope successfully with the challenges
    they may encounter during their spouses' military career.

        Senator Ben Nelson. Thank you, Dr. Davis.
        Mr. McLaurin?

     STATEMENT OF JOHN McLAURIN, DEPUTY ASSISTANT SECRETARY OF THE
                        ARMY FOR HUMAN RESOURCES

        Mr. McLaurin. Chairman Nelson, Chairman Akaka, Senator
    Graham, and Senator Chambliss, good afternoon. I appreciate the
    opportunity to testify before you today to discuss family
    readiness.
        In an All-Volunteer Force, caring for Army families plays a
    vital role in sustaining the commitment of our soldiers. For
    deployed soldiers, it is essential they know that their
    families have strong support networks while they're away.
        Our leaders, from installation level to the Chief of Staff
    of the Army, recognize the importance to not only sustain our
    robust family programs, but also to augment them as necessary,
    to address emerging needs. We continuously analyze feedback
    from a variety of soldier and family surveys, senior spouses,
    and commanders to ensure our soldiers' and families' needs are
    met.
        Recognized as a driving force behind hundreds of
    legislative, regulatory, and policy changes, as well as program
    and service improvements over the last 24 years, the Army
    Family Action Plan is one of our most significant and effective
    ways for soldiers and families to raise issues to senior
    leadership for resolution.
        At the November 2006 worldwide conference, we added another
    work group to this vital process, to identify the concerns and
    issues of our wounded warriors and their families.
        Recognizing the significant impact of deployment extensions
    on families, the Army is dedicated to providing the highest
    level of support to soldiers and family members upon the
    announcement of involuntary extensions. In light of the recent
    policy change to extend all Army tours to 15 months, General
    Casey has directed an immediate assessment of the impact of
    this extension on all Army programs and policies.
        When troop deployments were extended on very short notice
    last year, headquarters Army quickly established and deployed a
    multidisciplinary tiger team to Fort Wainwright, AK, and Fort
    Drum, NY, to support commanders' efforts to successfully deal
    with the resulting myriad of soldier and family issues.
        Incorporating lessons learned, the Tiger Team SmartBook is
    now used as a tool by commanders at every level to anticipate
    and determine the support necessary in the event of a
    deployment extension. The headquarter's Tiger Team stands ready
    to immediately assist commands faced with extended deployments.
        As articulated in the 2007 Army Posture Statement, the Army
    honors our commitment to care for our soldiers and their
    families, and to continually work to match the quality of life
    that our soldiers and families enjoy to the highest quality of
    service that they now provide to the Nation.
        I'd like to highlight a few of our key programs and
    services.
        Our Army Community Service (ACS) Organization has the
    primary responsibility to provide personal and family readiness
    support to commanders, soldiers, and families. Proactive in
    preparing and sustaining families, family readiness groups
    provide mutual support and assistance in a network of
    communications among the family members, chain of command, and
    community leaders.
        For geographically dispersed units, the Virtual Family
    Readiness Group Web System provides all the functionality of a
    traditional family readiness group in an ad hoc and online
    setting.
        We recognize our programs and services cannot be solely
    installation-centric. By consolidating Active and Reserve
    component program information and cross-training staff, we seek
    to reduce duplication and confusion.
        When fully implemented, the integrated, multicomponent
    Family Support Network will provide a comprehensive approach
    for community support and services to meet the diverse needs of
    Active and mobilized Guard and Reserve families.
        By utilizing the wealth of resources available in the
    civilian sector, we have established partnerships with 26
    corporate and military employers through the Army Spouse
    Employment Partnership. This initiative focuses on improving
    spouse employment opportunities, especially for our career
    spouses, who often must quit their jobs to accompany their
    soldier spouse to the next assignment. We believe increased
    spouse employment opportunity supports retention and
    contributes to family financial stability by helping spouses
    maintain careers.
        One partner, Dell Incorporated, established a Virtual Call
    Center pilot at Fort Hood, TX, back in 2005, allowing spouses
    to work from home. Dell has now implemented a from-home
    program, hiring 29 spouses to provide customer service from
    their homes. In 2006, our partners hired over 5,000 military
    spouses, bringing the total number employed by the partners to
    16,000.
        Family readiness, Senator Akaka, also entails providing
    soldiers with financial readiness training and counseling.
    Classes in personal financial management are provided during
    basic and advanced training, and again at a soldier's first
    duty station. During 2006, the ACS conducted over 14,000
    classes, with close to 320,000 in attendance. Soldiers who
    completed this course were significantly less likely to need
    financial counseling. Those who completed the counseling showed
    a significant decrease in indebtedness and increased savings.
        Taking care of families includes ensuring access to
    quality, affordable, available, and predictable child and youth
    programs. Soldiers can focus on the mission, knowing their
    children are thriving in our child and youth programs, and are
    adjusting as they move from school to school. As the need for
    child and youth programs continues to increase, the Army has
    taken a number of actions to assist in meeting this need.
        We have provided over 2 million hours of free and reduced-
    patron-fee hourly and respite childcare to families of deployed
    soldiers. Installation child development centers and family
    childcare homes have extended operating hours, beginning as
    early as 4:30 in the morning and ending late in the earning,
    and even into the weekends. Active Duty geographically
    dispersed and Reserve component deployed families are able to
    access child care support and pay reduced childcare fees.
    Operation Military Child Care helps families locate childcare
    at reduced rates in their local community, when they're unable
    to access childcare on the installations. At present, the Army
    has over 2,200 children receiving the childcare subsidy.
        In closing, I thank you for this opportunity to appear
    before you today to discuss family readiness. On behalf of the
    acting Secretary of the Army, the Chief of Staff of the Army,
    myself, and, most especially, Army families all over the world,
    I thank you for your already strong support. On all of our
    behalfs, I ask only for your continued strong support.
        I look forward to answering your questions.
        [The prepared statement of Mr. McLaurin follows:]
                   Prepared Statement by John P. McLaurin III

                          INTRODUCTION AND BACKGROUND

        Good afternoon Chairmen Nelson and Akaka, Senators Graham and
    Ensign, and distinguished members of the Subcommittees. I appreciate
    the opportunity to testify before you today to discuss the family
    readiness for Army families of Active Duty, Army National Guard, and
    Army Reserve personnel.
        In an All-Volunteer Force, caring for Army families plays a vital
    role in sustaining the commitment of our soldiers. As General Casey,
    Chief of Staff Army, stated when speaking to the Army on April 11,
    ``You and your families carry a heavy burden in today's war, with a
    hard road ahead.'' For deployed soldiers, it is essential that they
    know that their families have strong support networks while they are
    away. Our leaders from installation level to the Chief of Staff Army
    recognize the importance to not only sustain our robust family
    programs, but also to augment them as necessary to address emerging
    needs. One of General Casey's initiatives is to ``Enhance quality
    support to soldiers and families to preserve the strength of an all
    volunteer force.'' We continuously analyze feedback from a variety of
    soldier and family surveys, senior spouses, and commanders to ensure
    our soldiers and their families are well taken care of and their needs
    are met.
        In light of the recent policy change to extend all Army tours to 15
    months, General Casey has mandated an immediate assessment of the
    impact of this extension on all Army programs and policies. We
    recognize that never has the importance of family readiness and
    supporting programs been greater. It is even more critical that Army
    Family Programs and Child and Youth Services continue to meet the needs
    of our Active Duty and Reserve component families. As articulated in
    the 2007 Army Posture Statement, the Army honors our commitment to care
    for our soldiers and their families and unceasingly works to match the
    quality of life that our soldiers and families enjoy to the quality of
    service they provide to the Nation.
        Continued engagement in the long war is transforming the way the
    Army delivers family readiness programs, particularly for those
    families not living on or near military installations. Our programs can
    no longer be solely installation centric.
        We have integrated numerous Army-wide well-being functions into a
    comprehensive framework to better enable us to focus resources, measure
    success, and address the needs of an Army at war that is simultaneously
    transforming. These programs help to reduce the stress of daily
    challenges as well as provide assets to assist families to cope
    successfully and sustain their resilience.

                                FAMILY READINESS

        Services delivered through Army Family Programs are critical to the
    well-being of soldiers and families, and directly influence the Army's
    ability to sustain mission readiness during times of peace, war and
    national crisis. We do not want to put soldiers in a position of having
    to choose between the profession they love and the well-being of the
    families they love. The successes of our past in responding to the
    diverse needs of soldiers and families, along with our roadmap for the
    future, create an environment where soldiers have confidence in the
    systems we have developed to provide that support. The following serves
    to highlight a few of our key programs and services.
        Our Army Community Service (ACS) organization has the primary
    responsibility to provide personal and family readiness support to
    commanders, soldiers, and families. Extremely proactive in preparing
    and sustaining families, the ACS staff teaches life skills and provides
    ongoing training for the Unit Family Readiness Team (unit commander,
    rear detachment commander, Family Readiness Group (FRG) leaders, and
    family members). FRGs provide mutual support and assistance, and a
    network of communications among the family members, chain of command
    and community resources. FRGs conduct activities that support the
    unit's mission, ease the strain and stress associated with separations
    due to military missions, and provide a communication network. We have
    published guidance on FRG operations and provided useful and practical
    techniques for handling deployments for commanders, soldiers, spouses,
    and children.
        The Operation Resources for Educating about Deployment and You (OP
    READY) training program assists commanders in meeting family readiness
    objectives. Training programs include: Family Readiness Group Leader,
    Rear Detachment Commander, Family Assistance Center Operations, Army
    Family Readiness, Trauma in the Unit, Soldier/Family Deployment
    Survival, Reunion and Homecoming and Children and Deployment. OP READY
    is available through ACS and Reserve Component Family Program staff.
    Each OP READY topic includes separate materials for units, families,
    and instructors.
        Family Readiness Centers are places where families of deployed
    soldiers can gather for meetings, receive the latest information, and
    socialize with other family members. Facilities may contain computer
    equipment with web and e-mail access to facilitate family member
    communication with the deployed soldier, as well as video
    teleconferencing equipment linking on a coordinated schedule with the
    deployed unit. These are controlled and manned by either the ACS or the
    major deployed unit's rear detachment, or a combination of both, and in
    some communities are co-located with ACS.
        Implemented Army-wide in February 2006, the Virtual Family
    Readiness Group (vFRG), currently supports about 650 Army units and
    continues to receive positive feedback from users. The vFRG web system
    provides all of the functionality of a traditional FRG in an ad-hoc and
    on-line setting to meet the needs of geographically dispersed units and
    families across all components of the Army. The unit's vFRG links the
    soldier, family, FRG leader, unit commander, rear detachment, and other
    family readiness personnel on their own controlled access Web portal to
    facilitate the exchange of information and provide a sense of
    community, using technology to automate manual processes and provide
    enhanced services and communications. The unit commander is responsible
    for maintaining the vFRG content and user access.
        The Army Family Team Building Program builds stronger, more self-
    reliant families by providing education and readiness training that is
    particularly targeted to family members at every level, to include
    junior enlisted spouses who are new to the Army and its ways. Demand
    for classes increases during deployment and times of crisis when
    families need current information and strengthened coping skills.
        Our 95 garrison ACS directors reach out to the Army National Guard
    and Army Reserve units in their geographic areas of responsibility to
    assist Reserve Component family program personnel with providing
    information, training, and other deployment readiness assistance. Our
    Integrated Multi-Component Family Support Network (IMCFSN) provides a
    seamless customer-focused network of services to Army families,
    regardless of component. The IMCFSN delivery concept is accomplished by
    training Active Army, Army National Guard, and U.S. Army Reserve
    service providers on all authorized services and programs available to
    soldiers and families by each component. When fully implemented, the
    IMCFSN will provide a comprehensive multi-agency approach for community
    support and services to meet the diverse needs of Active and mobilized
    Guard and Reserve Army families. It will reduce duplication of effort
    and provide geographical support where families live. Networked systems
    will contribute to information superiority by providing families access
    to online knowledge sources and interconnecting people and systems
    independent of time, location, or Service component. The IMCFSN will
    ensure services are available throughout the Army for predictable full
    spectrum support.
        One of our concerns is that the Army's current deployment posture
    has taxed the resources of Rear Detachment (RD) and FRG leaders.
    Although spouse volunteer leaders are using a variety of strategies to
    share the workload, the nature of today's expeditionary Army makes
    running FRGs a daunting task. Family Readiness Support Assistants
    (FRSAs) provide administrative and logistical support to volunteer FRG
    leaders, (e.g., maintaining telephone trees, family data cards,
    scheduling speakers for FRG meetings, etc), which allows FRG leaders to
    focus on assisting families. Commanders are currently absorbing the
    cost of these assistants. The Army is working to institutionalize this
    support resource and establish battalion level FRSA positions Army-
    wide.
        Another valuable online tool for families is MyArmyLifeToo.com.
    Launched in 2005, it provides single portal access to current
    information about Army life. Heavily used by families, the site has had
    over 28 million ``hits'' since its inception. In addition, over 55,000
    soldiers and families have signed up to receive the monthly e-
    newsletter. Military families also have two additional Department of
    Defense (DOD) resources--Military Family Life Consultants (MFLC) and
    Military OneSource (MOS). The MFLCs provide much needed, on-demand
    personal support to soldiers and families by providing outreach through
    direct consultation, classes, groups, and individual sessions.
    Extremely flexible, the program allows the Army to deploy and redeploy
    these consultants where and when needed for up to 90 days. Topics
    include: emotional well being; relationships; marriages; parenting;
    deployment; change management; stress management; and grief and loss.
    When an installation identifies specific needs, they may request
    consultants with these specific skills. The consultants also provide
    assistance to ACS and Child and Youth Services staff to alleviate
    emotional burnout and family distress.
        Another DOD resource, Military OneSource (MOS), is a 24/7 toll free
    information and referral telephone line and Internet/Web based service
    that is available to soldiers, and their families. This service
    augments our installation family support services by providing
    telephonic and Internet access to families living off installations.
    MOS can also arrange for up to six face-to-face counseling sessions if
    requested. A very valuable resource, MOS staff disseminated information
    at 384 Army pre- and post-deployment briefings and events attended by
    more than 150,000 soldiers and family members last year.
        We also recognize the wealth of resources available in the civilian
    sector. As a result, we have aggressively cultivated partnerships to
    improve services to families. For example, the Army Spouse Employment
    Partnership (ASEP) initiative focuses on improving spouse employment
    opportunities for our Army spouses, especially our career spouses who
    often must quit their jobs to accompany their Active Duty soldier
    spouse to the next assignment. We believe increased spouse employment
    opportunities support soldier retention and contribute to family
    financial stability by helping spouses maintain careers. Since its
    inception in 2003, ASEP has linked 26 corporate and military employers
    with us to provide job and career opportunities to military spouses.
    Current Partners are: Adecco USA; Affiliated Computer Services, Inc.;
    Army and Air Force Exchange Service (AAFES); Army Career and Alumni
    Program (ACAP); Army Civilian Personnel Office; BellSouth; Boys & Girls
    Clubs of America; Computer Sciences Corporation; Concentra, Inc.; CVS/
    pharmacy; Defense Commissary Agency (DeCA); Dell, Inc.; EURPAC Service
    Inc.; H&R Block; Home Depot; Humana Military Healthcare Services;
    Lockheed Martin; Manpower, Inc.; Sabre Holdings/Travelocity; Sears
    Holdings; Social Security Administration; Sprint; Starbucks Coffee Co;
    Stratmar Retail Services; Sun Trust Bank; and United Services
    Automobile Association. One ASEP partner, Dell, Inc., established a
    Virtual Call Center pilot at Fort Hood, TX, in 2005 allowing spouses to
    work from home. The company has now implemented a ``From Home
    Program'', hiring 29 spouses and providing them training and equipment
    to work in virtual customer service from their homes. MyArmyLifeToo.com
    and the military spouse job search Web site, www.msjs.org, provide
    portals for military spouses to develop their resumes and apply for
    jobs. In fiscal year 2006, ASEP partners hired over 5,000 military
    spouses, bringing the total of spouses employed by ASEP partners to
    16,000. The Council of Better Business Bureaus, a key community
    partner, works with military installations and local Better Business
    Bureaus to resolve consumer issues affecting military personnel and
    their families.
        Recognized as a driving force behind hundreds of legislative,
    regulatory and policy changes, and program and service improvements
    over its 24-year history, the Army Family Action Plan (AFAP) enables
    our soldiers and families to raise issues to senior leadership for
    resolution. AFAP is recognized and strongly supported by local commands
    as well as senior Army leadership. Installations and headquarters
    monitor issues and their progress through regular guidance, direction,
    and leadership approval. AFAP recognizes that as the operational tempo
    of the Army changes, we need to adapt our programs and policies to
    continue to meet the needs of our soldiers and families. Each year, the
    conference pursues resolution of critical quality-of-life issues. For
    example, at the November 2006 worldwide AFAP conference, we added a
    workgroup to this vital process to represent our wounded warriors. Our
    soldiers and families know AFAP is their ``voice'' in the Army's
    future.
        Another program the Army has initiated to obtain relevant and
    current feedback from families is the Army Family Readiness Advisory
    Council (AFRAC). Meeting twice yearly, the AFRAC is co-chaired by the
    spouses of the Chief of Staff Army and Vice Chief of Staff Army.
    Membership is comprised of the following: spouses of Army Command
    Deputy Commanders/Chief of Staff; Command Sergeants Major; Director,
    Army National Guard and Chief, Army Reserve; Army National Guard and
    Army Reserve Command Sergeants Major; rotating Army Service Subordinate
    and Direct Reporting Units reps (Commander, Command Sergeants Major
    Spouses); rotating Army 2-star Joint Command representatives (Commander
    and Command Sergeant Major Spouse); Sergeant Major of the Army (DA-
    level) representative; and a selected junior spouse. The AFRAC members
    look at issues that impact quality of life from a strategic and global
    Army-wide perspective and advise senior leadership on the direction of
    Army Family Programs; assess and recommend solutions for evolving
    family issues; establish short and long range goals and objectives;
    serve as advocates for Family Program services, initiatives and
    volunteers; and assist in the implementation of family programs. The
    Council serves to enhance soldier readiness, retention and mission
    efficiency, increase program effectiveness, and connect families to the
    Army.
        The Survey of Army Families (SAF) is another tool the Army uses to
    gauge the attitudes and behaviors of civilian spouses of Active Duty
    soldiers. Recent in-depth analyses of 2004/2005 SAF V data, provided by
    the U.S. Army Research Institute for the Behavioral and Social Sciences
    and the Army's Family and Morale Welfare and Recreation Command
    (FMWRC), confirm the importance of MWR and family programs to soldier
    readiness and retention. Significant findings include:

             Spouse knowledge and use of Army support assets and
            being comfortable dealing with Army agencies are keys to
            positive deployment adjustment.
             Army recreation services are the second most commonly
            used non-medical service during deployment, with 42 percent of
            spouses using this installation program. Thirty-four percent
            indicated they increased their use during the deployment, and
            62 percent said they are satisfied with the services they
            received.
             Sixty-eight percent of spouses who used ACS personal
            and financial assistance programs during deployment found these
            services helpful, the highest rating of satisfaction for
            deployment related services in the survey.
             As a result of deployment, depression and school
            problems affect about one in five children. Parents believe
            their youngest children cope most poorly with the deployment
            separation, especially preschoolers under age 6.
             Perceptions about the Army as a good place for younger
            children are linked to soldier retention: 86 percent of the
            spouses who think the Army is good for younger children want
            their soldier to stay in the Army, while only 51 percent of
            spouses who think the Army is not good for their children want
            their soldier to remain in the Army.

        The Army's Recreation program provides a variety of activities
    designed to support the families of deployed soldiers. Begun at
    Schofield Barracks when the 25th Infantry Division was notified that
    they would be deploying, Army libraries now offer ``Read to the Kids.''
    This program allows the families to stay connected through a deployed
    parent recorded story time during their months of separation. Soldiers
    deployed in Iraq and Afghanistan and their families are also able to
    share ``video messages'' during the deployments. Automotive centers
    provide auto storage areas where spouses can store vehicles with
    problems until their spouse returns. Some installations also provide
    auto repair and towing services for family members of deployed soldiers
    to insure they have safe, reliable service. Sports and fitness offers
    targeted classes for family members, scheduled at times and locations
    which best meet their needs.
        To support our Wounded Warriors, the Army Wounded Warrior (AW2)
    program employs specially trained personnel in the role of Soldier
    Family Management Specialists (SFMS). As the soldier's primary
    advocate, the SFMS assists in meeting the soldier and family's needs
    throughout the treatment, rehabilitation, and transition processes.
    Support offered includes assistance with financial issues, pay
    problems, administrative support requirements, and explanation of the
    physical disability evaluation process. When the soldier transitions
    from the Army into the community, the SFMS serves as the soldier's
    Veterans Affairs (VA) advocate. They also provide a link for the
    soldier and family to various Federal, State, and local aid programs,
    benefits, and support organizations. After the soldier and their family
    have completed transition, the SFMS continue to reach out to the
    soldier and family to ensure continued advocacy and support.
        The Department of the Army is dedicated to providing the highest
    level of support to soldiers, family members, and installation
    infrastructures upon the announcement of involuntary extensions. Army
    deployed a multi-disciplinary Tiger Team from Headquarters Army to
    172nd Stryker Brigade at Fort Wainwright, AK, and 10th Mountain
    Division at Fort Drum, NY, to support these commander's efforts to
    successfully deal with the myriad of family issues resulting from the
    unit deployment extensions. Incorporating lessons learned, we have
    developed a Tiger Team Smart Book as a tool for commands at every level
    to anticipate and determine the support necessary in the event of a
    deployment extension. The primary objective of the Tiger Team Smart
    Book is to synchronize, standardize, and streamline procedures to
    effectively and efficiently support soldiers and families through this
    difficult time. The Tiger Team will continue to provide assistance as
    needed to the additional units facing extended deployments.
        Although families are resilient, they are not on their own. They
    are part of the Army family and we take care of them by providing
    support and meaningful opportunities for social bonding. There must be
    sufficient infrastructure, independent of volunteer support, properly
    resourced to deliver consistent quality services in a seamless manner.
        The Army will continue to offer quality programs and services to
    families, which will positively affect retention. Family well-being and
    quality-of-life are critical to the readiness of our soldiers and have
    a profound effect on decisions regarding whether the soldiers will
    remain in the Army or leave it when their enlistments or obligations
    are over. Adaptive and resilient, the Army family will continue to
    thrive as the expeditionary Army sustains an operational tempo that
    continues to be challenging.

                      CHILD AND YOUTH SERVICES INITIATIVES

        Quality, available, affordable, and predictable child and youth
    programs, delivered in an integrated system of facility based, home-
    based and off-post programs, allow soldiers to focus on their missions,
    knowing their children are thriving in our child and youth programs and
    are adjusting as they move from school to school. As a quantifiable
    force multiplier, these programs are crucial in reducing the conflict
    between soldiers' parental responsibilities and unit mission
    requirements. The 2005 Survey of Army Families indicated that the
    ``predictable and consistent services provided by Army Child and Youth
    Programs reduce the stress children and youth experience when a parent
    is deployed''. Further, parent responses in the Survey indicate the
    ``Army provides a supportive environment and services designed to
    promote positive adjustments and strengthen child well-being during the
    period of deployment separation''.
        There are many military-unique factors that make child care and
    youth supervision options a necessity to support our soldiers. For
    instance, military families are often younger families with children
    and are living away from their own extended families and neighborhoods.
    Military families need care for infants and toddlers which is the very
    age group that care is least available off post. Military duties
    require child care and youth supervision options 10-14 hours per day
    including early morning, evenings, and weekends as well as round-the-
    clock care--sometimes for an extended period of time. The lack of care
    options at remote sites and overseas creates challenges between mission
    requirements and parental responsibilities. Parents who are either
    single and dual military and those families whose spouses are deployed
    making them temporarily single parents have distinctive needs. One
    additional military unique factor includes the mobile military
    lifestyle with its frequent relocations resulting in challenging school
    transitions--especially for teens.
        Child and youth programs play a vital role in supporting families
    affected by the global war on terror. Families tell us that the
    extraordinary efforts our child and youth staff and family child care
    providers make a difference in their ability to cope with the stress of
    family separation. Telling, too, is the fact that many of the staff and
    providers are also dealing with the deployment of their own spouses.
        As the need for child and youth programs for both deployment
    support and day-to-day workforce child care continue to increase and
    change, the Army has taken a number of actions not only to meet this
    need but also to meet extended deployment needs and close installations
    in Europe.
        The Army has provided over 2 million hours of free and reduced
    patron fee hourly and respite child care to families of deployed
    soldiers since the beginning of Operations Enduring Freedom and Iraqi
    Freedom. Installation child development centers and family child care
    homes have extended operating hours. Often beginning as early as 4:30
    a.m. and going until late into the evening to support shift workers,
    child and youth employees and family child care providers support
    families of deployed soldiers. The staff often works at night and on
    weekends to provide care during family readiness group meetings and
    special events held by the installation to support families of deployed
    servicemembers.
        Family child care providers frequently provide additional evening
    hours of care taking the children to ball practice, choir, helping with
    homework, and volunteering to coach youth sports teams whose coaches
    are deployed. In short, child and youth employees and family child care
    providers are making every effort to provide a predictable and
    consistent level of program availability to enhance the lives of
    children who desperately need this support. The respite care provided
    gives parents time to attend to personal needs or take breaks from the
    stresses of parenting. Partnerships with organizations like the Boys
    and Girls Clubs of America and 4-H enhance School Age Services
    programs, and Teen and Youth Centers and offer value-based programs to
    help youth deal with the stress associated with parental deployments.
        Army also responded to the child and youth requirements resulting
    from the deployment extensions of the 172nd Stryker Brigade at Fort
    Wainwright, AK, and 10th Mountain Division at Fort Drum, NY. At each
    location, child and youth services programs and hours of operation were
    expanded to meet the unique needs of these families. In Alaska, Child
    and Youth Services staff from other Army installations volunteered to
    be temporarily assigned to Fort Wainwright to ease the burden and
    stress of the existing child and youth staff, many of whom had spouses
    who were extended. The lessons learned are applicable to the recently
    announced 15 month deployment requirements.
        To support deployment requirements, Active Duty geographically
    dispersed and Reserve component deployed families are able to access
    child care support and pay reduced child care fees when soldier parents
    deploy. Operation: Military Child Care, a DOD partnership initiative
    with a national nonprofit organization, helps families locate child
    care at reduced rates in their local community when they are unable to
    access child care on military installations. Since the inception of
    Operation: Military Child Care in February 2005, over 5,000 DOD
    children have participated. Army currently has over 2,200 children
    receiving the child care subsidy.
        In conjunction with the National 4-H Office, the Army's Operation
    Military Kids (OMK) initiative is a collaborative effort in 34 States
    to support the children and youth of our Reserve component soldiers.
    This vital Army partnership with the Department of Agriculture is a
    success story that engages main stream America in directly supporting
    our military youth. Most recently, the OMK team in Minnesota responded
    to the child and youth needs of families affected by the extension of
    its National Guard soldiers. Mobile Technology labs are used to
    communicate with deployed parents, provide professional development for
    school personnel, and support other OMK activities to help ease the
    stress on families. In fiscal year 2006, more than 29,000 youth
    participated in OMK events and services conducted in their local
    communities.
        While providing extensive deployment support to Active and Reserve
    component families, Army transformation and the expeditionary force is
    altering the way the Army has traditionally delivered child care
    services. Increasingly, we find the on-post, Army-operated child care
    programs insufficient to meet the growing demand for services. To
    increase child care availability, several community initiatives have
    been developed to meet the child care needs of our families.
        Military Child Care in Your Neighborhood assists geographically
    dispersed Active Duty families locate child care spaces in their
    community. These child care spaces are targeted to meet the child care
    needs of recruiters, Reserve Officer Training Corps instructors, MEPCOM
    personnel and soldiers on independent duty assignments living in
    communities that are not within reasonable commuting distances to
    military installations.
        Army Child Care in Your Neighborhood supports families living in
    the immediate catchment areas surrounding some of our installations
    where there are long waiting lists for care on the installation. Army
    has programs underway at the most heavily impacted transformation
    installations: Fort Riley, KS; Fort Carson, CO; Fort Drum, NY; Fort
    Hood, TX; Fort Campbell, KY; and Fort Bliss, TX.
        Under these programs, services are outsourced through a national
    nonprofit organization that assists families locate child care when
    they are unable to access child care on military installations.
    Families pay reduced fees based on total family income for child care
    services delivered through state licensed/regulated and nationally
    accredited or credentialed community child care programs.
        As part of the 2006 DOD emergency intervention strategy, nine
    highly impacted Army transformation locations procured 18 Child Care
    Interim Facilities to serve as a viable solution to meet the child care
    needs until permanent facilities can be constructed (a total of 1,800
    additional spaces). The facilities are located at Fort Bliss, TX; Fort
    Campbell, KY; Fort Carson, CO; Fort Drum, NY; Fort Hood, TX; Fort
    Lewis, WA; Fort Riley, KS; Fort Stewart and Hunter Army Airfield, GA.
    Permanent construction projects are programmed in the Future Years
    Defense Plan to replace these interim facilities by 2013. Using the
    authority granted by section 2810 of the National Defense Authorization
    Act for Fiscal Year 2006, Army is adding 10 permanent modular child
    care facilities at Fort Bragg, NC; Fort Lee, VA; Fort Lewis, WA; Fort
    Polk, LA; Fort Sill, OK; Tobyhanna Army Depot, PA; Anniston Army Depot
    and Redstone Arsenal, AL; Detroit Arsenal, MI; and Picatinny Arsenal;
    NJ.
        Another factor in retention of soldiers and families is the
    availability of quality schools in the civilian community. Army is
    working with the DOD and Department of Education to ensure that its
    families are prepared for successful school transitions from one
    location to another in support of the mobile and transforming Army.
    Developed in 2005 to address Base Realignment and Closure and Army
    transformation needs, the Army School Transition Plan includes
    strategies for successful transition of more than 55,000 Army-connected
    students from schools in continental United States and overseas
    locations to be able to adapt to the mobile and changing military
    lifestyle. Better transitions mean a smoother move and settling in for
    the family, which in turn supports their stability and security. The
    soldier, therefore, can concentrate upon the unit's mission.
        The plan focuses on coordination with national, State, and local
    education agencies to integrate military-connected students into local
    school systems. The Army, the DOD and Department of Education are
    working in partnership with affected local education agencies to
    identify best practices on how to accommodate the influx of
    transitioning students.
        During the past few years, many school systems have demonstrated
    their commitment to respond to the needs of our Army children.
    Superintendents, principals, and counselors welcome information about
    how to support our children, including military support services
    available for their use. Teachers and counselors are extremely positive
    and demonstrate a genuine interest in the well-being of our Army
    children.
        Army Child and Youth Programs are vital to the readiness, retention
    and well-being of soldiers and their families. Army must continue on a
    path to meet the enduring child care and youth supervision needs of a
    transforming and growing Force and also meet the mobilization and
    contingency child and youth needs of an Army at war. To do this
    requires robust programs delivered by a system of Army operated
    programs on post and by Army sponsored programs provided off post. Only
    through this integrated approach can Army provide the child and youth
    services and programs our soldiers need and deserve.

                                   CONCLUSION

        Army family readiness and child and youth programs are absolutely
    essential to the well being of our soldiers and their families and
    ultimately the sustainment of the force. Army leadership is committed
    to providing a comprehensive framework of predictable and available
    programs and services on and off the installation that prepare and
    support soldiers and families to successfully meet the challenges of
    current and future deployments.
        The Nation has received an excellent return on its investment in
    our families. On behalf of Army families all over the world, I ask for
    your continued strong support of our family, child and youth programs.
        I thank you for the opportunity to appear before you today, and I
    look forward to answering your questions. Army Strong!

        Senator Ben Nelson. Thank you, Mr. McLaurin.
        General Brady?

      STATEMENT OF LT. GEN. ROGER A. BRADY, USAF, DEPUTY CHIEF OF
     STAFF FOR MANPOWER AND PERSONNEL, HEADQUARTERS, UNITED STATES
                               AIR FORCE

        General Brady. Chairman Akaka, Chairman Nelson,
    distinguished committee members, I appreciate the opportunity
    to appear before you today to talk about Air Force family
    readiness programs.
        Let me begin by thanking you for the tremendous support you
    have consistently provided for our airmen and their families.
    The sacrifices our airmen, their spouses, and children make
    throughout a typical career are enormous. As our operations
    tempo increases and deployments lengthen, our Air Force
    families are presented with many unique challenges not often
    experienced by their civilian counterparts.
        We have over 30,000 total-force airmen deployed in support
    of the global war on terror. In many respects, the families of
    these deployed airmen are at war, also. To meet their needs, we
    support our Air Force community with programs and services for
    both married and single total-force airmen, whether at home or
    deployed. From childcare and youth programs to reintegration
    programs for returning deployers and their families, your Air
    Force remains committed to ensuring our airmen and their
    families have the right tools to cope with the many challenges
    they face.
        I would agree wholeheartedly with Dr. Davis that support to
    families is important before, during, and after deployments. In
    fact, it's my belief that the programs that we provide after
    deployment are sometimes the most important in dealing with the
    stresses that reunited families have.
        I am extremely proud of the hard work and dedication put
    forth by our support personnel to make our mission, and,
    therefore, the Air Force mission, happen every day all over the
    world. We recognize this would not be possible without the
    tremendous support from these subcommittees, and we thank you.
        You have my written statement, and I welcome your
    questions.
        [The prepared statement of General Brady follows:]

              Prepared Statement by Lt. Gen. Roger A. Brady, USAF

        Thank you, Chairman Akaka and Chairman Nelson and distinguished
    committee members for the opportunity to appear before you today to
    discuss Air Force Family Readiness Programs. The statement ``We recruit
    the member, but we retain the family'' is not a cliche but has been a
    reality in the Air Force for many years. The quality of life we provide
    for our airmen and their families is a distinct determining factor in
    how long they remain in our service.
        The sacrifices our airmen, their spouses, and children make
    throughout a typical career are enormous. As our operations tempo
    increases and deployments lengthen, our Air Force families are
    presented with many unique challenges not experienced by their civilian
    counterparts. We have over 30,000 Total Force airmen deployed in
    support of the global war on terror, and in many respects, the families
    of these deployees are at war too. To meet their needs, our Air Force
    community support programs and services are there for both married and
    single Total Force airmen, whether at home or deployed.
        In particular, the Air Force developed the Heritage to Horizon
    initiative to strengthen all predeployment, deployment, and post
    deployment airmen and family wellness programs. Specific areas of
    improvement include a standardized predeployment checklist and
    education, mandatory, comprehensive redeployment services, post-
    deployment health assessment and reassessment, non-clinical counseling,
    and reunion challenges that the airman and family face. Many of these
    programs are outlined in more detail below. Together they demonstrate
    the Air Force's strong commitment to ensuring our airmen and their
    families have the right tools to cope with the challenges that may
    arise from deployments.

                                   CHILD CARE

        Readily available, high quality and affordable child care and youth
    programs are a workforce issue with direct impact on mission readiness.
    Airmen must balance the competing demands of parenting and military
    service. This is particularly challenging in today's environment of
    higher operations tempo, increased mobilization, and longer periods of
    time away from home. We are committed to serving these airmen and their
    families by reaching out and assisting all members of the total force
    through robust child and youth programs wherever the member resides.
        Our Air Force Home Community Care program reduces out-of-pocket
    expenses for Air Reserve component members by providing free in-home
    quality child care during their scheduled drill weekends. This program
    provides the same quality child care available to airmen assigned to or
    living on a military installation. This past year, the Home Community
    Care program provided more than 10,000 child care hours, enabling our
    Air Reserve and Air Guard's mission readiness. As one Air Guard member
    concluded, ``This is an invaluable asset to a dual military couple!
    Drills have always been a headache for child care and it is great to
    have someone to count on for these times! Thank you, Thank you, Thank
    you!'' Another Air Guard member shared, ``The Air Force's Home
    Community Care program is greatly appreciated. If not for this program,
    I would have to consider leaving the Air National Guard.''
        Air Force Active Duty families are also eligible for the Military
    Child Care in Your Neighborhood program designed to meet the child care
    needs of servicemembers living in areas where on-base military child
    care is not available. This program supports military families with
    locating and paying the cost of high-quality child care outside
    military installations. It also provides eligible members with a
    subsidy for 60 days while a nonmilitary spouse is looking for work.
        Similarly, the Air Force Expanded Child Care programs provides
    18,000 hours each month of child care during nontraditional work hours
    at no cost to the military member. These programs enable airmen to
    obtain high quality child care even when the mission requires duty
    hours at night or on weekends. In addition, the Returning Home Care
    program provides 16 hours of free child care per child to Active Duty,
    Air National Guard, and Air Force Reserve members returning to their
    home stations after deployment in support of contingency operations.
    The Air Force Family Child Care Subsidy program saves families an
    average of $143 per child per month by subsidizing the care received in
    an Air Force home when a slot is unavailable at the child development
    center. This program is of particular help to those airmen with
    children under the age of 3 or children with special needs, and to
    those airmen who work shifts outside of a normal duty day.
        A recent national study highlighted the Department of Defense (DOD)
    child care program as leading the Nation in quality standards and
    effective oversight. We are proud of this honor and believe that our
    child care is extremely important to our single and dual military
    parents, enabling them to focus on the mission. Unfortunately, we still
    have approximately 5,000 children on our waiting lists. To reduce this
    shortfall for our airmen, we are adding 2,176 child care spaces using
    emergency intervention funding from the Office of the Secretary of
    Defense. Child and youth programs are vital to our readiness and we ask
    for your continued support.

                          YOUTH PROGRAMS AND SERVICES

        Our youth programs focus on children elementary age through teens.
    They are a key component of our strategy to support the quality of life
    of airmen and their families. Our two ongoing partnerships with Boys &
    Girls Clubs of America and the U.S. Department of Agriculture's 4-H
    program provide additional means to reach families living both in
    communities and on active installations. The Mission: Youth Outreach
    program provides a 1-year free membership in a local Boys & Girls Club.
    Through this important program, Active Duty, Guard, and Reserve
    families who do not live near a military installation still have a safe
    and positive place for their youth to spend their out-of-school time.
    Our partnership with 4-H fosters the development of 4-H clubs on Air
    Force bases, and specially appointed State Military Liaisons reach Air
    Guard and Reserve families with these quality youth programs.
        We offer a variety of summer camp opportunities including
    residential camps, specialty camps, and other base specific camp
    programs. For the Guard and Reserve youth, our base youth programs have
    partnered with the National Military Family Association to provide
    residential youth camps during the summer. Over 5,000 Air Force youth
    participated in camps last year designed to help them achieve their
    potential, develop their self-esteem and build their resistance to
    negative pressures.

                               OUTREACH PROGRAMS

        Taking care of our Air Force family members back home and helping
    to keep them in contact with the deployed member is extremely important
    to the morale and well being of our airmen. The Air Force provides
    numerous programs to assist airmen and their families cope with the
    stresses of deployment. Our support for spouses and families during
    deployment includes free e-mail access, phone and video calls, support
    groups within units or at central locations, and newsletters. These
    important programs help to keep families connected with their deployed
    spouse and up-to-date on programs offered by the installation. In
    addition, we provide workshops and seminars on topics such as financial
    survival during deployment, career planning and development for
    spouses, ``suddenly single'' parenting skills, and how to keep long-
    distance relationships healthy. Airman & Family Readiness Centers
    (A&FRCs) work with Family Member Programs and other support units on
    installations to sponsor special activities for children such as Junior
    Personal Deployment Functions which help young family members adapt
    better to their parents deploying by understanding what their parent
    experiences in preparation for deployment.
        Our A&FRCs also sponsor Heart Link Spouse Orientations designed to
    ``blue'' spouses who are new to a military life style. This day-long,
    fun-filled program helps spouses understand the Air Force mission and
    how they and their military spouse support that mission. Through games
    and interactive events, they learn about all the benefits and services
    provided to them by the Air Force. Our installation commanders open the
    program by giving a mission briefing and then close the day with the
    presentation of a Heart Link spouse coin and the singing of the Air
    Force song! The success of this program has been tremendous as measured
    by pre- and post-assessments, as well as a 90-day follow-on survey to
    ask if the program impacted their opinions about the Air Force. One
    spouse of a pilot said, ``After learning about how the Air Force took
    care of me and my family, I now support my husband's continuation with
    an Air Force career.''
        Our Stay Connected deployment kits provide children and parents
    with a way to maintain a solid connection while they are separated
    during deployments. Since April 2006, over 13,000 of these kits have
    been provided to airmen and their families. In the words of one Reserve
    spouse, ``Thanks again from all of us who are trying to make their
    deployment over there easier. I know my husband enjoyed the message I
    made him on the recorder pen, and I play the one from him almost
    everyday.''
        Providing free calling cards is another way we are facilitating
    better communication between deployed airmen and their loved ones. The
    Air Force Aid Society distributed almost 79,000 $20 calling cards to
    Air Force Active Duty, Guard, and Reserve personnel during fiscal year
    2006--a total value of $1.6 million. These cards were vital in helping
    families not only stay in better contact, but also saved them money on
    telephone bills. During the same period, the Veterans of Foreign Wars
    distributed approximately 19,000 additional calling cards to Air Force
    personnel at an estimated value of $135,000.
        The Give Parents A Break program offered through Child Development
    Programs provides senior leadership and others in the referral network
    a way to offer no-cost child care to help support military members
    needing relief from the demands of parenting and military life such as
    deployment-related stress. The Child Care for PCS Program helps relieve
    some of the stress felt by families (E-5s and below) in the process of
    a PCS move. Families receive 20 hours of child care before departing
    and after arriving at the new base. Supporting the need for family
    members to be contributing citizens, the Child Care for Volunteers
    program provides child care services for individuals engaged in
    supporting activities that benefit the Air Force community.
        As part of a DOD-wide deployment support initiative, Whiteman Air
    ForceB will test the Parents as Teachers (PAT) Heroes at Home program.
    PAT Heroes at Home is an early childhood parent education program aimed
    at improving parenting practices and increasing school readiness and
    success. This free program involves monthly personal visits with a
    certified parent educator. During these visits, the educator shares age
    specific information and activities that encourage development. Group
    parent meetings are held to discuss popular parenting topics along with
    weekly playgroups. At least once each year developmental and health
    screenings are conducted using standardized screening tools and vision
    and hearing checklists. Parent educators also link families to service
    providers, agencies and other local resources that offer services
    beyond the scope of PAT/Heroes at Home.
        At Eglin Air Force Base, FL, we are also testing another DOD-wide
    program: the Coming Together Around Military Families initiative. This
    program is designed to strengthen the resilience of young children and
    their families who are experiencing trauma, grief, and loss as a result
    of a servicemember's deployment. The program provides training for
    professionals working in child care, mental health, health care and
    A&FRCs. These professionals play an important role in supporting
    families with very young children who experience the emotional or
    physical loss of a parent due to deployment, illness, injury, or death.
    This program will also provide parent resources and training for base
    professionals as well as outreach efforts to Guard and Reserve
    communities. Activities include a coming together campaign that will
    include messages to parents on supporting young children through
    deployment, relocation and other transitions.

                       COMMUNITY PARTNERSHIPS FOR SUPPORT

        Within the DOD, our Exchange and Commissary partners also provide
    numerous services for families of those deployed. The commissaries
    actively participate in all pre-deployment briefs and at A&FRC
    briefings aimed at Guard and Reserve families. In addition, the new
    Defense Commissary Agency Internet initiative, the Virtual Commissary,
    is primarily designed to take the commissary to those Guard and Reserve
    families who do not live near a commissary and to those deployed to
    forward areas. This program when fully operational will allow
    authorized patrons to order from a selection of commissary items at
    commissary prices, plus a fee for shipping, handling, and delivery, to
    be delivered to their location.
        The Army and Air Force Exchange Service (AAFES) provides support
    directly to deployed personnel with approximately 450 associates
    currently deployed in support of Operation Enduring Freedom and
    Operation Iraqi Freedom. AAFES also offers programs that allow family
    members and other U.S. citizens to show their patriotic spirit. AAFES
    sells prepaid calling cards at www.aafes.com to anyone wishing to
    donate to ``Help Our Troops Call Home.'' Since the inception of the
    program in 2004, more than 192,000 cards have been purchased to help
    servicemembers stay in touch with family and friends. There is also a
    link on the Web site for purchasing gift certificates for deployed
    troops that can be redeemed in any military exchange in the world.
    Americans have generously contributed in excess of $1.7 million for
    these ``Gifts from the Homefront.'' AAFES also provides the Patriot
    Family Connection which allows the American public to send troops
    messages of support that are seen and heard in exchanges throughout the
    contingency theater and overseas.
        Working in partnership with the civilian community, Operation
    Military Child Care (OMCC) provides child care fee assistance for
    National Guard and Reserve who are activated or deployed and whose
    children are enrolled in non-DOD licensed child care programs. OMCC
    provides help in locating licensed child care options in the member's
    community and offers reduced child care fees through a subsidy. Members
    are eligible to participate during the period of deployment and for 60
    days after their return. OMCC also provides a subsidy for 60 days while
    a nonmilitary spouse is looking for work
        Also in partnership with the civilian community and DOD, Air Force
    programs provide families of severely injured military members with
    assistance to find and pay for safe, licensed child care services for a
    period of 6 months during their period of recuperation. The program is
    available nationwide wherever the injured member is receiving either
    in-patient or out-patient medical care.

                               SPOUSE EMPLOYMENT

        Military families often require two incomes to achieve their
    aspirations, similar to American families as a whole. Frequent moves
    can inhibit a military spouses' ability to start and sustain a career,
    even though approximately 80 percent of military spouses have some
    college. Our spouses often suffer long periods of unemployment and,
    therefore, loss of income.
        Another issue that affects the financial stability of military
    families is that spouses are often not eligible for unemployment
    compensation after PCS moves. Statutes or policies of many States view
    a spouse leaving a job due to a military move as a voluntary separation
    when, in fact, they have no choice in the matter. Granting eligibility
    to working spouses who relocate due to PCS provides a much needed
    financial bridge for military families both during mandatory moves and
    while spouses seek suitable employment at the new location. Of the
    States with Active Duty Air Force bases, 12 offer full unemployment
    compensation to military spouses who PCS, others evaluate on a case-by-
    case basis, and 5 offer no unemployment compensation to PCSing spouses.
    DOD, through the quality-of-life liaisons, is working with senior
    military leadership to educate State legislators on the need to promote
    legislation that will support full unemployment benefits for PCSing
    military spouses.
        Differing licensing requirements can limit advancement or deter re-
    entry into the workforce at a new location. DOD has identified
    locations where there are licensing barriers and is developing policy
    recommendations for licensing and credentialing requirements across
    States for high demand, or shortage of, careers and jobs. We need to
    encourage states to sponsor model programs to assist military spouses
    and develop policies that promote timely transfer of employment,
    including elimination of cross-State certification barriers, and
    adopting high quality alternative certifications when possible.
        To assist spouses in the employment process, the Air Force Spouse
    Employment Program provides consultation and resources to help spouses
    quickly reenter the job market at new locations. A&FRC staff provide
    information and referral at both the losing and gaining installations
    to prepare spouses for each new job search. Staff network with local
    employers and human resource professionals to insure the most up-to-
    date job search information is available. For young spouses, the
    program assists in career planning for a mobile lifestyle and provides
    resource information and education on virtual career potentials.

                              FINANCIAL MANAGEMENT

        The A&FRC Personal Financial Management Program provides education
    and one-on-one counseling for all financial related issues from basic
    budgeting to consumer education to investing. Nationally certified
    financial consultants on staff at the A&FRCs provide mandatory
    financial education during basic training and at First Term Airman
    Centers. Information on payday lending and other interest-based loans
    are part of that training. Additional education opportunities are
    provided during transition and relocation seminars. A myriad of
    workshops for other audiences and the general public include investment
    planning and the Air Force Thrift Savings Plan.
        The Air Force Aid Society is the official charity of the Air Force.
    In addition to emergency financial assistance, the Air Force Aid
    Society provides education grants for spouses and family members. They
    also provide over $2 million of Community Enhancement Programs yearly.
    As well as the phone cards for deploying members, those programs
    include: Bundles for Babies (financial planning for parenthood), Car
    Care (preventive vehicle check-up and oil changes for deployee's
    spouses), Wellness and Respite Care, Youth Employment Skills, Spouse
    Employment Training, and numerous child care programs.

                                   COUNSELING

        The A&FRC professionals offer services that provide information,
    foster competencies and coping skills, and offer consultation and
    assistance that help airmen and their families deal with the competing
    demands of the Expeditionary military mission and family
    responsibilities. Additional services offered enhance the well-being
    and readiness of airmen and family members and include personal and
    family readiness counseling, financial planning and management,
    emergency financial assistance, spouse career planning and development,
    and transition and relocation assistance.
        To help ensure they are prepared, all deployed airmen are required
    to attend pre-deployment counseling. Spouses are strongly encouraged to
    attend. These one-on-one or group sessions are focused on personal
    planning, combat stress education and prevention, dealing with
    separation, children's issues and community resource access. A&FRCs
    also provide one-on-one and small group consultation as requested for
    airmen, spouses, and families during the entire redeployment process.
    In addition, many installations, through combined efforts of A&FRCs,
    Chaplains, and Family Member Programs, offer day-long or weekend
    retreats and other events as part of redeployment for families and
    couples.

                             REINTEGRATION PROGRAMS

        Reintegration and redeployment support begins for airmen while in
    the area of responsibility when chaplains or mental health staff
    provide initial information and resources and airmen complete a post-
    deployment health assessment. Families can begin reintegration planning
    by working within spouse support groups and with A&FR staff focusing on
    developing communication skills and realistic expectations for the
    reunion process and homecoming. At home station airmen complete formal
    redeployment processing and take advantage of programs and services to
    help them reconnect with family workplace, and community.
        The need for an airman and family readiness presence in the AOR has
    long been a subject of discussion. As a pilot program we have deployed
    two members, one civilian and one military, for a period of 120 days to
    Al Udeid AB, Qatar. Their focus is on deployment support issues,
    reintegration, connectivity with families back home, Air Force Aid
    Society issues and relationship building. They work in close concert
    with chaplains and life skills to provide reintegration services to
    assigned personnel, as well as to personnel returning from Iraq and
    processing through Al Udeid. Significant work will also be done in the
    area of personal financial management--both one-on-one counseling and
    classroom instructions--and in other areas such as Transition,
    Relocation, Employment Assistance counseling and skill building. The
    positive impact of this initiative cannot be overemphasized. Not only
    will we be able to assist our airmen and their families with common
    deployment issues, we will also provide a significant resource to
    deployed leadership and airmen by providing standard A&FRC support in a
    myriad of areas where assistance is needed even at a deployed location.
    Our presence will be a force multiplier and, ultimately lessen the
    workload on A&FRCs Air Force-wide and facilitate a smooth transition
    back to home station for our deployed airmen.

    AIR FORCE SURVIVOR ASSISTANCE PROGRAM AND PALACE HELPING AIRMEN RECOVER
                                    TOGETHER

        The Air Force Survivor Assistance Program aims to provide the best
    possible individual service to airmen who are seriously wounded,
    injured, or ill and families who have lost a loved one. The heart of
    this program is the family liaison officer (FLO) who is assigned to
    each patient for the duration of their need. The FLO serves as a single
    point of contact between the family and the numerous helping agencies.
    Our FLOs assist the family in arranging transportation, child care, or
    even care for a family pet. They do whatever is needed for as long as
    needed to help reduce the stress on the airmen and families during this
    difficult time.
        When an airman is wounded, ill, or injured in the war zone the
    Survivor Assistance Program swings into action. Within hours, we begin
    tracking medical status and evacuation plans to regional medical
    facilities or back to the United States for treatment. At each stop
    along the way we ensure a FLO is there to meet the airman and assist
    with any needs he or she may have. This often includes arranging local
    transportation and accommodations for family members, working through
    required paperwork, as well as being a friendly face for the airman.
    When families travel to visit their seriously wounded or injured
    relative in a strange town, the FLO is there to provide needed
    assistance. The FLO is not expected to be the expert in each area, but
    is trained to find the right answers for the families he or she is
    working for. Our FLOs provide a critical resource to deal with the
    unfamiliar routine of the recovery process and prevent the airman from
    being lost in the bureaucracy.
        Our service reaches worldwide to ensure all of our wounded, injured
    and ill members are equally well cared for. For example, then Staff
    Sergeant Israel Del Toro was badly burned as the result of an IED
    attack in Afghanistan. He was in intensive care and in a coma at Brooke
    Army Medical Center in San Antonio, TX, and remained in that condition
    for 4 months. In the meantime, his wife and family needed to be
    relocated from Italy, where Sergeant Del Toro was stationed. His wife
    was not a U.S. citizen and her application for registration, which had
    been filed at the U.S. Embassy in Italy, could not be located. In
    keeping with the motto of ``whatever the family needs,'' the FLO worked
    with the State Department to locate immigration paperwork for the
    spouse, worked to process her application, made housing arrangements
    for the family, and provided temporary lodging for other relatives. The
    FLO also secured permanent housing for the family on Randolph Air Force
    Base, arranged the shipment of their household goods, organized a crew
    to assist placing their furniture in their new home, and picked up
    their car from the port. In addition, the FLO retrieved the family dog
    from the airport, enrolled the spouse in driver education and English
    classes, and arranged transportation for hospital visits, shopping
    trips and many other needs. Sergeant Del Toro's story illustrates how
    important the FLO can be to a family and is typical of the dedication
    and devotion our Air Force FLOs exhibit when they are taking care of
    one of their own.
        Unfortunately, the extent of some injuries does not allow our
    wounded heroes to remain on Active Duty status. We have taken steps to
    alleviate many concerns these brave warriors have regarding their
    future careers after they suffer debilitating injuries. The Air Force
    began the Palace Helping Airmen Recover Together (HART) program a few
    years ago to provide long-term case management assistance to severely
    wounded Air Force members who are not able to remain on active duty.
    Like the FLO, the Palace HART program assigns a Community Readiness
    Coordinator (CRC) when servicemember casualty notification is made. The
    CRC works closely with the FLO to ensure the combat related injured or
    ill servicemember and their family receives complete information and
    entitlements. Our CRCs provide these airmen and their families with
    individual transition, employment, relocation, financial, and other
    forms of assistance, and ensure Palace HART members and their families
    are referred to the correct benefit agencies for assistance.
    Additionally, the CRCs advocate for these members with government and
    civilian agencies to ensure they are making a successful transition to
    civilian life. We have made a commitment to follow-up on our medically
    separated or retired wounded members for a period of 5 years. This will
    help ensure they are receiving the assistance they deserve for the
    sacrifices they made for all Americans.
        We continue to work through the Services, the Department of
    Veterans Affairs (VA), and other agencies, both governmental and
    nonprofit, to ensure a seamless transition from Active Duty service and
    the military medical system to their communities and VA and local
    medical services. Some medically separated or retired members do not
    desire continued employment with the Air Force. However, these men and
    women in uniform have much to offer their communities. The Air Force
    will keep its commitment to these members and their families.
        I am extremely proud of the hard work and dedication our personnel
    put forth daily to not only prepare our airmen for deployment but also
    ensure we are supporting their families before, during and after. The
    stories and insights I've shared with you today demonstrate that our
    professionals never forget the importance of what we are charged with
    accomplishing. Through innovative systems and programs, the hard work
    of our dedicated personnel, and the support of the community, we
    continue to provide critical mission capability for our commanders and
    vital support for our members and their families. The entire Air Force
    support team makes our mission, and therefore the Air Force mission,
    happen every day all over the world. We recognize this would not be
    possible without tremendous support from the Readiness and Management
    Support and Personnel Subcommittees. We thank you and look forward to
    working with you as we press forward in helping to sustain America's
    Air Force.

        Senator Ben Nelson. Thank you, General Brady.
        Senator Akaka, I think I'd like to have you start with your
    questions first.
        Senator Akaka. Thank you very much, Mr. Chairman.
        I would like to ask some questions about cost-saving
    measures with the Army. As I mentioned in my opening statement,
    earlier this week the Army announced it was beginning a series
    of cost-saving measures to deal with the needed costs of plus-
    up of forces in Iraq until additional supplemental funding is
    enacted. The Army took similar measures last year, when a
    supplemental was not enacted until mid-June.
        The Notice to Congress we received 2 days ago stated that
    the Army would ensure, ``uninterrupted support to the families
    of our deployed soldiers.'' This could be read in two ways. Mr.
    McLaurin, is the Army position that these belt-tightening
    measures will exempt only family support programs for deployed
    soldiers, or does the Army intend to exempt family support
    programs for all Army families from funding cuts and
    restrictions?
        Mr. McLaurin. Senator Akaka, it is my understanding that,
    in fact, we are exempting the family support programs. As I
    think everyone understands and appreciates, all of our force
    supports the global war on terrorism, and it's just a question
    of when, and not, particularly now, they're going to be
    deployed. It is almost impossible, in my view, to maintain an
    effective family support readiness program if you have to
    ratchet it up and down, depending on who is involved with it.
    Those programs need to be there for all our soldiers and their
    families all of the time.
        Senator Akaka. I'm concerned that the DOD, in particular
    the Army, is developing a habit of making major changes in
    force structure and basing without adequate planning. We have
    seen this in the so-called modular conversion of brigades and
    the relocation of forces from overseas. We are seeing it again
    in the Army and Marine Corps grow-the-force proposals before us
    now. At best, facilities such as schools and housing may be
    ready just in time, but the DOD now seems to view the use of
    temporary facilities as normal and even preferable to taking
    time to build permanent facilities and new housing before the
    troops arrive.
        Mr. McLaurin, what input does the family support, human
    resources, and community has the Army planned for such actions?
    Are the Army's plans based entirely on operational needs, or is
    any consideration given to the impact on families? Can you give
    us an example of how any of the basing and force structure
    plans I just mentioned was changed to take account of family
    considerations? Finally, did your office attempt to put family
    considerations on the table inside the Army?
        Mr. McLaurin. Sir, those family considerations are, and
    have been, on the table for quite some time. Both the previous,
    and now the current, Chief of Staff of the Army are very
    family-oriented, and they actually personally ensure that those
    items are taken into consideration.
        I cannot give you a specific example, as you request.
    However, I can assure you that, from the Installation
    Management Command CG to the G-4 of the Army and the G-1 of the
    Army, as well as the Family and Morale Welfare and Recreation
    Command representatives, all have their voices heard. When the
    considerations were given to what the requirements were for the
    new brigades, for example, there is a specific component in
    there for quality-of-life programs. So, they are, in fact,
    taken into consideration.
        Senator Akaka. My final question, Mr. Chairman.
        I understand that the Services do provide some family
    assistance to the National Guard and Reserves. However, what
    I've noticed is that this support tends to be in the form of
    brochures, pamphlets, or Web sites. What method, or methods,
    are being used by the DOD and Services to ensure that Active
    Duty personnel, National Guard, and Reserves know about this
    information. For instance, it is my understanding that some
    families are unaware that there are programs and organizations
    that may be of assistance to them as their servicemember is
    deployed, even though there are these informational documents
    and Web sites available.
        Mr. McLaurin. Sir, I can answer for the Army, and I'm sure
    my colleagues here can answer for the other Services. We make a
    very concerted effort to ensure that the Reserve components are
    included in our planning. The Integrated Multicomponent Family
    Support Network that is being put together now has
    representatives from both the Reserve and the Guard on it to
    ensure, in fact, that not only are they part of the planning
    process, but the goodness that they offer, because they have
    very good robust programs, themselves, out there, and they can
    actually reach out to the various States who have
    individualized programs and find the best practices out there.
    Hopefully we can incorporate them into the overall Army
    support. Because, after all, sir, we are one Army.
        Senator Akaka. Thank you for your responses.
        Mr. Chairman?
        Senator Ben Nelson. Thank you, Senator Akaka.
        Secretary Dominguez, an August 2006 DOD report identified
    several types of lending practices it considered predatory. One
    is the military installment loan. Now, DOD asked for
    legislative authority to regulate predatory lending practices
    that target military personnel and their families, and Congress
    gave DOD that authority. DOD has just published draft
    regulations implementing this authority. However, these draft
    regulations will still permit military installment loans. So,
    my question is fairly simple. Why do the DOD draft regulations
    allow military installment loans, a practice that DOD has
    described previously as predatory?
        Mr. Dominguez. Sir, we, in compliance with the legislation,
    consulted with the Federal agencies that regulate the financial
    industry, and, with them, drafted regulations which are in the
    Federal Register now for comment. So, we're in the process of
    receiving those comments and considering them.
        It's important to understand that in the regulations we
    drafted, it also put the issue of predatory lending and
    predatory practice on the agenda for oversight by the Federal
    agencies that have regulatory oversight, so this is now one of
    the things they must check, and will check, in the industries
    that they regulate. It allows for us to go back and tighten the
    regulations if we miss something or if behavior out there
    warrants it. We had to walk a pretty fine line to try and
    preclude people exploiting servicemembers, at the same time
    allow and enable the financial services industry to offer
    products that were of use to members of the Armed Forces and
    the wider consumer community. There are places where that's a
    fine line to walk, and we tried to strike that balance.
        The bottom line is, the regulations are still amendable to
    change, and we designed into the regulatory process our ability
    to go back and tighten a hole if the behavior and financial
    management of the financial services industry warrants it.
        Senator Ben Nelson. Well, I understand that, but doesn't it
    seem a bit inconsistent to identify installment loans as a
    predatory practice, or a practice to probably avoid for your
    own financial security, and yet, you're treating them as okay?
    I guess maybe I'm still confused. I know what your authority
    is, and I know what regulatory bodies try to work with it, as
    well--banking regulations, insurance regulations on insurance
    products. But what did the DOD find out about installment
    loans, that they didn't know when they thought they were bad?
        Mr. Dominguez. Right. Sir, I'll take that one for the
    record, and get back to you on that.
        [The information referred to follows:]

        Prior to engaging in drafting the regulation, the Department
    requested input from the public on the statute. Trade associations and
    financial institutions advised that the regulation needed to be clear
    concerning when the provisions of the statute applied and how to
    identify the covered borrower. During our consultation with the Federal
    Regulatory Agencies, they reiterated the need for ``clear lines''
    around definitions of covered consumer credit and the impacted
    creditors, or the Department risk unintended consequences that could
    negatively impact favorable financial products for servicemembers and
    their families.
        The initial version of the regulation has focused on credit
    products that have, in general practice, terms that can be detrimental
    to military borrowers. There are installment loans with favorable terms
    and some with terms that can increase the interest rate well beyond the
    limits prescribed by 10 United States Code Sec. 987. Isolating these
    detrimental credit products without impeding the availability of
    favorable installment loans was of central concern in developing the
    first iteration of the regulation. No sufficiently succinct definition
    could be developed for ``military installment'' loans that did not also
    include other installment loan companies.
        Including installment loans as covered credit required all
    financial institutions to accomplish several additional actions that
    could cause them to limit their credit offerings to military consumers:

             Identify the military borrower. The Department is
            working on the first iteration of the process to identify
            covered borrowers. Experience will tell us where we may have
            problems associated with the proposed process.
             Limits on refinancing. This would create several
            unintended consequences for military borrowers seeking
            consolidation loans and favorable terms through refinancing.
             Limits on use of deposits, savings, allotments, and
            electronic funds transfers. Military borrowers could lose
            favorable loan conditions as a result of these restrictions.

        The Department's intent is to balance protections with access to
    favorable credit. The protections posed in the statute can assist
    servicemembers, if applied prudently. The first iteration of the
    regulation applies these protections to forms of credit that have
    proven to be accessed by servicemembers who need forms of financial
    assistance other than high cost short term loans to resolve their
    financial problems. These loans can be succinctly defined in order to
    preclude potential unintended consequences.
        The Department will continue to pursue protections for
    servicemembers and their families through surveillance of the
    marketplace, asking for feedback from counselors, and through surveys.
    This review will provide evidence of how best to apply the protections
    in the statute to problematic credit products.
        Additionally, the Department will continue to work with State and
    Federal regulatory agencies to ensure that other existing protections
    are applied to negative circumstances experienced by servicemembers and
    their families. Situations where installment companies exceed state
    usury caps can be brought to the applicable state agencies for review
    and action.
        Through a combination of the Department of Defense regulation and
    assistance from State and Federal regulators, the Department will
    continue to pursue appropriate protections for servicemembers and their
    families.

        Senator Ben Nelson. I don't want to burn up all of our
    time, but I appreciate it.
        Mr. Dominguez. All right.
        Senator Ben Nelson. I'm not trying to put you on the spot.
        Mr. Dominguez. No, that's quite all right, sir.
        Senator Ben Nelson. Okay.
        Mr. McLaurin, the Secretary of Defense recently announced
    this extension of service for Iraq and Afghanistan. Can you
    tell me how the families were notified of the decision? Were
    they told before the Secretary of Defense announced it in a
    press conference? Just let me know exactly how they were
    informed.
        Mr. McLaurin. Sir, it's my understanding that they----
        Senator Ben Nelson. I'm sure they'll tell me, when they get
    here, but I just wanted to----
        Mr. McLaurin. I have no doubt whatsoever, sir. [Laughter.]
        Senator Ben Nelson. Yes.
        Mr. McLaurin. To my knowledge, I don't believe that they
    were informed beforehand. I know that afterwards there was
    communication directly with the commanders in the field. I
    would presume, although I do not know and I would not want to
    misstate, that the commanders in the field were the ones that
    informed them. However, the news networks are very good, so it
    would not surprise me if they did not learn from the news
    sources before they actually learned from the unit commanders.
        Senator Ben Nelson. They are very good. Either that or
    we're very bad.
        Mr. McLaurin. Sir, there are two ways to look at that.
        Senator Ben Nelson. General Brady and Dr. Davis, as both
    the Air Force and Navy reduce the size of your Active and
    Reserve Forces, airmen and sailors will face unique stress as
    their military careers come to an end much earlier than many of
    them expected or hoped would happen. What programs do you have
    in the Air Force and Navy to address the needs that this early-
    out has created?
        General Brady. Go ahead, ma'am.
        Dr. Davis. One of the things we're doing, Senator, is
    accelerating the participation of the members in the Transition
    Assistance Program (TAP) that we have now available for them,
    so they get career counseling, they get financial advice, they
    get housing, they get job placement support, resume, et cetera,
    et cetera, to help them. Also, for those who might be Navy
    personnel who are wounded, we have special relations with the
    Department of Labor and with employers, such as Northrop
    Grumman, to make sure that we are giving them every opportunity
    to develop skills, have the access to the employment and
    training that they need, and then to be able to be placed in a
    partnership with an industry like Northrop Grumman. Or, in
    Cisco--we've done it--we've just established a relationship,
    last week, with Cisco for that type of training.
        Senator Ben Nelson. Is there a follow-up to see how many of
    them are actually placed or find additional employment once
    they leave? Do we have any statistics as to----
        Dr. Davis. We don't----
        Senator Ben Nelson.--how successful----
        Dr. Davis. I do not have those statistics yet, sir. It may
    be too early, but I will make sure that you have that as we
    move along with this, as we have the drawdown and we deliver
    the services to see if they're effective and what the outcome
    is for the individual sailor.
        Senator Ben Nelson. I'd like to know how that works. There
    are placement programs and there are placement programs.
        Dr. Davis. Right.
        Senator Ben Nelson. So, we want to be able to evaluate it.
        Dr. Davis. Yes, sir.
        Senator Ben Nelson. General Brady, what about yours?
        General Brady. Much like Dr. Davis said, we have TAPs, as
    well, that provide all kinds of counseling, resume preparation,
    all of that sort of thing that you would expect in a transition
    program, which has been very effective.
        Regarding our wounded, we have also committed to any of our
    wounded that when it is finally determined that they cannot
    medically stay on Active Duty, if they want to stay with us and
    work, they can, and several of them have. We have several of
    our seriously wounded airmen now serving with us as civilians,
    some of them in very close to the same capacity that they were
    on Active Duty, security forces, et cetera. So, that's been a
    successful program that some of our young folks that have been
    wounded have taken us up on.
        As the personnel guy in the Air Force, I get calls from all
    kinds of retired generals who want to hire bright young people
    that are getting out. So, they're always trying to get me to
    put them in touch with those people. Obviously, there are
    Privacy Act issues there, but what we have done is, we have
    made sure that our young people who may be leaving, if they are
    willing to put their contact information on a Web site where
    industry can find them, we are doing that. That's working, as
    well. We--just like the Navy does, we have some very bright
    people who are leaving, and they're going to continue to serve
    in the civilian community, and there are employers out there
    who want them.
        Again, we do not, either, at this point--I think it is--as
    Dr. Davis suggested, we don't have statistics, really, on
    employment. But we'll provide them as we get them.
        Mr. Dominguez. Sir, if I might----
        Senator Ben Nelson. Secretary?
        Mr. Dominguez. One of the employers who wants these people
    is the DOD, and, in particular----
        Senator Ben Nelson. I know, they're going from blue to
    green.
        Mr. Dominguez. Yes, sir.
        Senator Ben Nelson. I know.
        Mr. Dominguez. Right. That's what I was going to mention,
    is that that blue-to-green option is available. The Congress
    provided financial incentives to do that. We have some fabulous
    people who want to continue to serve and want to make the Armed
    Forces a career, and have made the transition, and are making
    great contributions to the Army and the Marine Corps, and we're
    very grateful for their willingness to take that extra
    challenge.
        Senator Ben Nelson. Dr. Davis, do you know about, from the
    Marine Corps' point of view?
        Dr. Davis. Oh, yes, sir. I do not have the statistics on
    the blue-to-green effort, but I will provide those for you,
    sir.
        [The information referred to follows:]

        The total Blue-to-Green program statistics, as of May 8, 2007, are
    as follows:
        Enlisted: Army reported 811 enlistments (Air Force: 305; Marine
    Corps: 79; Navy: 410; Coast Guard: 17).
        Officers: Army reported 364 interservice transfers (Air Force: 229;
    Marine Corps: 5; Navy: 119; Coast Guard: 2; Health Professional
    Services: 1; Service Academy Cross Commission: 8).

        Dr. Davis. Another employer is the civilian side of the
    DOD, as well as the other Federal agencies, and we're working
    on a program with that. Of course, as veterans, or in a veteran
    capacity, they get special points for employability.
        Senator Ben Nelson. Sure.
        Dr. Davis. We're also watching, sir, the effect of the
    drawdown on our diversity missions within the Department.
        Senator Ben Nelson. Secretary Dominguez, can you get us the
    information from the Army, so we can have both the----
        Mr. Dominguez. On the blue-to-green, sir?
        Senator Ben Nelson. Blue-to-green.
        Mr. Dominguez. Oh, yes, sir. We'll be able to provide the
    total statistics. I think the last time I looked at it, it was
    somewhere around 300 people had transitioned. So, what--and
    it's not a huge number.
        Senator Ben Nelson. Okay.
        Mr. McLaurin. I can give you----
        Mr. Dominguez. Is it more than that now?
        Mr. McLaurin.--the figures for the Army now. It's around--
    the last time I looked, about 320 captains and lieutenants. I
    personally sign off on each one of those, so I do keep track of
    that.
        Senator Ben Nelson. Okay.
        Mr. McLaurin. But there is a great number that have
    volunteered to come over to the Army, and we're proud to have
    them.
        Senator Ben Nelson. As the transition has occurred--it is
    not over yet--you would expect that there would be more as you
    get toward the end, that they might be willing to take it, too.
        Mr. McLaurin. Yes, sir. We welcome them.
        General Brady. For the Air Force, there is a whole range of
    things that people can do. Obviously, we would like for them to
    go to our Guard and Reserve. Some of them are going to other
    Government agencies. Other agencies in the Government who like
    people who show up on time and are drug-free and have a
    security clearance, are attractive to lots of Government
    agencies, and as well as the blue-to-green program, which
    several hundred of our people have taken. So, there are a range
    of options, including Civil Service, as was mentioned, that are
    available to our people.
        Senator Ben Nelson. Let's see, any further questions,
    Senator Akaka?
        Senator Akaka. No further questions.
        Senator Ben Nelson. Thank you. I appreciate it very much.
        Oh, excuse me, I didn't see Senator Chambliss.
        Senator Chambliss?
        Senator Chambliss. I was trying to be obscure over here,
    Mr. Chairman. [Laughter.]
        Senator Ben Nelson. Sure. You were.
        Senator Chambliss. I just have a couple of questions.
        Secretary Dominguez, the Army requires each soldier who
    redeploys from theater to undergo a postdeployment health
    reassessment 90 to 180 days after they return. These health
    assessments are not always done in person, but can be done over
    the phone and by contractors, versus a military person. This is
    not ideal, and allows for many conditions to be overlooked and
    go unreported which might surface, months or years later.
    Specifically related to some of the most common conditions,
    such as post-traumatic stress disorder (PTSD) and traumatic
    brain injury (TBI), it is hard, if not impossible, to diagnose
    those conditions over the phone. Do you believe DOD should
    require these assessments to be conducted in person by military
    personnel? How can we ensure that soldiers actually complete
    these health assessments? Should DOD require predeployment
    screening for PTSD and TBI, in an attempt to determine which
    personnel might be predisposed to these conditions?
        Mr. Dominguez. Sir, let me start with a little bit of the
    facts, as I know them. We do a predeployment screening. So,
    that predeployment health assessment is accomplished for
    everyone before they go over. That's a face-to-face, nose-to-
    nose thing. Then they get a postdeployment assessment. So,
    that's--as they come back, very shortly after their return,
    there is that. What you're talking----
        Senator Chambliss. That's face-to-face.
        Mr. Dominguez. To my knowledge, sir, it is face-to-face.
    Now, I'll have to take this for the record and get back to you
    on this, because it was my understanding these programs were
    face-to-face, that there was a human being talking to another
    human being and evaluating them against several criteria that
    are contained on that health assessment form.
        [The information referred to follows:]

        The Post-Deployment Health Assessment (PDHA) and the Post-
    Deployment Health Reassessment (PDHRA) must be completed by all
    servicemembers returning from deployment. Both require a trained health
    care provider to review the concerns identified on the questionnaire
    and discuss with the servicemember his or her responses, along with
    general physical health and mental health concerns. For the PDHA, the
    health care provider interview will be direct, face-to-face. For the
    PDHRA, 3 to 6 months later, the health care provider interview will be
    face-to-face, whenever possible, but it isn't always possible because
    of the multiple locations of the Reserve component servicemembers
    across the United States and territories. However, health care
    providers are required to contact each returning servicemember.
        Another program available to both Active and Reserve component
    servicemembers and their families is the Mental Health Self-Assessment
    Program. An innovative tool in the Defense Department's ``Continuum of
    Care Toolbox,'' it provides a guidepost to help direct users to the
    next step of care, but does not involve in-person contact with a health
    care provider. It offers anonymous, self-directed mental health and
    alcohol screening by web and phone, as well as through special events
    held at installations and Reserve units.

        Mr. Dominguez. The one you are particularly speaking of is
    the one that's again, it's a postdeployment reassessment, done
    up to 6 months later, and it was specifically in place in order
    to be able to pick up those items that might take longer to
    mature.
        Now, I think the more important issue is that the
    reassessments are done by someone who has the clinical skills
    to be able to pick it up, whether they're a military person, a
    Government civilian, or a contractor, as long as they are
    capable of understanding what's presenting themselves in this
    human being that they're engaged with.
        It does seem to me that the face-to-face piece of this is
    important, and I was under the impression that that is, in
    fact, how that was conducted.
        I do want to point out that we have deployed, recently, a
    self-assessment that's available to people over the Internet
    that's actually been used, because it's private and
    confidential, and it can help you understand yourself, what
    you're feeling, what's happening, and whether or not you need
    help. Then it guides you to where you can get that. That's
    turned out to be a tool that many of our people are using.
        Senator Chambliss. Yes. Well, if you will, check that,
    because my understanding that what you refer to is the
    reassessment.
        Mr. Dominguez. Right.
        Senator Chambliss. In a number of instances, it is being
    done by telephone versus face to face.
        Mr. Dominguez. Dr. Davis may know something more about
    that, sir.
        Dr. Davis. Sir, the screening tools, themselves, can be
    done online or by the individual, paper-to-pencil, but they are
    not a diagnostic tool, they are the first screen that the
    individual completes so we have a continuity of record of
    change in behavior. So, the individual is able to identify some
    symptoms for themselves. As soon as anyone identifies a ``yes''
    that would indicate they have a problem sleeping, they have a
    problem with loss of memory, that individual is immediately
    referred to a licensed, certified clinician, who then has a
    face-to-face meeting with them to start the process of
    diagnosis and treatment referral, et cetera. So, we do not rely
    on that as the only method for----
        Senator Chambliss. All right. Well, my main point is, I
    want to make sure we have confidence in that system and that
    we're not letting something slip through the cracks there. If
    somebody's not--I don't know how you would respond at a--
    somebody looking at it over the Internet. A response over the
    Internet might not pick it up. But I sure want to make sure
    that we have all the confidence in the world that's going to
    work and is working.
        Mr. Dominguez. You were right on target with that, Senator,
    and the chain of command is important here, including for Guard
    and Reserve members--right?--so that one of the concerns of
    commanders is making sure you're coming to muster after your
    time away so that we can get eyes on you and we can talk to
    you. So, there's been a lot of talk in the Department about
    making sure we have commanders and first sergeants and whatever
    reaching out and talking to people after they've been deployed.
    Particularly important in the Guard and Reserve, where you're
    not coming to work every day for us. So, we share your concern
    there, that that's working.
        I think we have reasonable confidence, but I'll get more
    information for you, sir.
        [The information referred to follows:]

        It is the Department of Defense's (DOD) policy that all
    servicemembers complete the Post-Deployment Health Reassessment (PDHRA)
    3 to 6 months after returning from deployment using a standard
    questionnaire. A trained health care provider will review and discuss
    with the servicemember his or her responses on the PDHRA form, along
    with general physical health and mental health concerns. The health
    care provider interview will be direct, face-to-face, whenever
    possible, but it is not always possible because of the multiple
    locations of the Reserve component servicemembers across the United
    States and territories. However, we offer a call center to ensure that
    we reach those servicemembers who are unable to complete a face-to-face
    interview.
        The DOD has implemented a Deployment Health Quality Assurance
    program, which soon will expand to a more thorough Force Health
    Protection Quality Assurance program. In this program, the Services
    monitor and evaluate their compliance with the policies, including the
    completion of the PDHRA forms and the health care provider interviews.
    In addition, the Force Health Protection and Readiness office monitors,
    reviews, and oversees the Services quality assessment programs, to
    include site visits. These efforts allow us to ensure that
    servicemembers complete the actions required by our policy. Rosters
    generated from individuals completing the Post Deployment Health
    Assessment (PDHA) are used to track compliance with completing a post
    deployment health assessment 3 to 6 months later.
        The Department does screen for conditions that would limit
    deployment. More importantly, we want to screen for Traumatic Brain
    Injury (TBI) during the interdeployment period, not at the last minute
    during the predeployment assessment, to allow for adequate evaluation
    and treatment. Therefore, we are adding a full suite of TBI screening
    questions to every servicemember's annual periodic health assessment.
    This allows us to identify issues prior to deployments, causing less
    operational impact. In addition, we are adding the same TBI screening
    questions at the time of accession, as well as to the PDHA and the
    PDHRA.
        The DOD issued a Deployment Limiting Mental Health Conditions
    Policy in November 2006 that requires screenings for mental health
    issues before deployment. These screenings require a medical records
    review and a brief predeployment interview that asks the servicemember
    if there are conditions or concerns they might want to disclose that
    are not already in their medical records.

        Senator Chambliss. Okay.
        Currently, DOD does not offer attractive enough incentives
    to hire the doctors and nurses they need to execute their
    mission, and it has an overly burdensome bureaucratic hiring
    and contracting process that prevents military bases from
    getting the military, civilian, and contract health providers
    they need, when they need them. My staff visited three Army
    hospitals in Georgia the week before Easter, and every hospital
    commander mentioned this as a major problem that limits their
    ability to treat soldiers at their posts.
        Do you agree that this is a problem and that a fundamental
    change is necessary? What recommendations do you have for
    streamlining this process and providing the necessary
    authorities to get the personnel required? Do you believe that
    existing law regarding service obligations for new physicians
    should be changed?
        Mr. Dominguez. Sir, let's see, there are many different
    aspects of that question, but I think Congress recently helped
    us with the ability to do bonuses for members of the medical
    profession. So, this is something we do watch pretty carefully.
    It is a challenge to get the physicians and nurses and these
    medical professionals in. Dentists are a challenge. But we do
    have some tools, and I think at present, it's up to us to use
    those aggressively. Now, we are looking at this issue right now
    in the Department, and haven't come to any particular
    conclusions on it.
        With regard to hiring Federal civilians, we are excited
    about the prospect of conversion to the National Security
    Personnel System (NSPS), because that system allows us to move
    to market-sensitive pay. It's much more flexible, in terms of
    being able to pay a market rate in a specific locale for a
    shortage specialty. So, we're hopeful that the conversion to
    NSPS will actually help us with the Federal civilian side of
    the thing.
        I've not heard any problems with our ability to get
    contract help. In addition to that, I think commanders of
    hospitals all across this country have established
    extraordinarily imaginative and innovative relationships with
    the health care network around the base to try and tap into
    that network through TRICARE, to be able to take advantage of
    health care when there is a shortfall in our internal military
    treatment facilities.
        Senator Chambliss. As I say, my staff picked up on this
    when they were down at Fort Benning, Fort Gordon----
        Mr. Dominguez. Right.
        Senator Chambliss.--and Fort Stewart. So, you might touch
    base with those medical commanders.
        Mr. Dominguez. Sure will.
        I do want to make one point, this came up in a discussion
    of the Secretary's Independent Review Group yesterday, in their
    testimony over in the House, and this is an idea we've been
    intrigued by for a while, which is this issue of allowing
    medical professionals to join the Armed Services with a shorter
    service obligation, and not worry about being able to serve to
    a 20-year retirement, because, for many of them, that's not
    what they're after; they've already had their successful
    profession, and now they're seeking an opportunity to give
    service back to the Nation. Our rules can preclude them from
    doing that. That's something that I think does need some
    thought, and I promise to work with you on that, Senator, to
    find a way to enable those patriots to help us out, where we
    need it.
        Dr. Davis. Senator, the Department of the Navy's retiree
    council is looking at a way in which we can return medical
    personnel to some form of service to the country, and one of
    them is modeling after the Department of Health and Human
    Services Retiree Medical Corps, to specifically use them to
    augment the services we provide. But I would just--even though
    the bonuses and additional incentive pay for high-skilled,
    stressed, specializations--child psychiatry--have been very
    beneficial, I think it's incumbent upon all of us to look at
    the personnel needs that will go along with your first question
    about the diagnosis and sufficient treatment of the PTSD. It's
    lucky that the Navy's Surgeon General is heading a servicewide
    group with the VA to look at all mental health issues and how
    we can recommend to make sure that we're adequately screening,
    pre- and post-deployment, that we have the baselines, and that
    we're treating with the right number of personnel. But it is a
    challenge.
        Senator Chambliss. Clearly, one of the largest problems
    confronting our wounded troops returning from theater is
    diagnosing and treating TBI. I'm concerned that no established
    procedures or validation process exists for effectively
    diagnosing TBI. Would it be helpful for health care providers
    conducting post-deployment health screening to ask a list of
    specific questions to ascertain whether a servicemember is
    suffering from TBI? Or what else can DOD do to more effectively
    detect, monitor, and treat TBI?
        Mr. Dominguez. Sir, the first item is that this is an area
    that will require a lot more research. We are way into the
    leading edge of our science and knowledge right now about TBI,
    and there's a lot of work that has to be done. Dr.
    Winkenwerder, the former Assistant Secretary of Health Affairs,
    initiated a lot of things, took action to get some of this
    underway. What he has done already is, together with the VA, he
    has promulgated some clinical-practice guidelines for PTSD
    assessments and for TBI assessments. So, those guidelines for,
    ``Here's what you look for,'' have been put out in the field to
    physicians in both VA and the DOD to do exactly what you have
    said, which is to help cue them into what to look for, so they
    can begin to make an assessment about the potential for mild
    TBI and PTSD.
        We have established a TBI Task Force to look at this. Then
    there's a Mental Health Task Force that Congress commissioned a
    year ago that is due out in May. This TBI Task Force is to try
    and coordinate and integrate all of the things we're doing
    across DOD and VA and other Federal agencies to make sure that
    the research is aligned and practices--the best practices in
    the current clinical practices are disseminated, and that we
    have a feedback loop that we know that what we are doing is
    effective, and we're growing and learning as we understand more
    about this particular injury. A lot of work to be done yet,
    sir.
        Senator Chambliss. I have had the privilege of visiting
    Bethesda and Walter Reed from time to time, and it seemed like
    every one of those soldiers, marines I talked to, has either a
    low-grade or severe TBI, and, when you hear how they got
    injured, it's pretty easy to understand why.
        I would just caution us to make sure that, particularly on
    this reassessment online that we make sure we're doing
    everything possible there to plug in the right kinds of
    questions for symptoms on late-developing TBI.
        Mr. Dominguez. Yes, indeed. Now, one of the things that
    we're also doing is trying to capture and record in theater
    when you are subject to an event that might have produced TBI.
    That is a hard thing to do, and the battlefield is chaotic, but
    we're trying to implement procedures now. So, we know that
    Private Dominguez was subjected to a blast. We'll know if he
    had a concussion or if he was knocked out or if they just rang
    his bell for a while, and now--he's back into the fight. So,
    we're trying to capture that and document that stuff about the
    servicemember, so that goes back and then gets incorporated
    into the medical record. Tough challenge, but it's one of those
    things we need to do, because that's a trigger or a cue to the
    health professionals, say, ``Okay, this person is at risk for,
    maybe, demonstrating some of these symptoms for--so, get your
    antennae out here and watch this person.''
        Senator Chambliss. Thank you, Mr. Chairman.
        Senator Ben Nelson. Thank you, Senator Chambliss.
        Secretary Dominguez, Senator Ensign was unable to be here
    because of a prior commitment. He has asked that a couple of
    his questions be submitted for the record, and they'll be sent
    to you. One is on the funding for schools. He notes that the
    sustainment, restoration, and modernization of schools has
    fallen short by up to 36 percent of the goals established by
    DOD, and obviously he's asking why. On military construction
    funding for schools, the actual funding for the military
    construction, as opposed to the modernization, has decreased by
    over 60 percent, from $99.4 million in 2006 to $37.9 million in
    the budget request for fiscal 2008. So, these will be submitted
    to you for a response.
        Mr. Dominguez. Be glad to answer those, Senator.
        Senator Ben Nelson. Sure.
        I want to thank the panel for your indulgence today, and
    for your questions. Dr. Dominguez, it seems like you were in
    the barrel for a little while this afternoon, but I'm sure
    you'll acquit yourself very well on these answers that you
    submit for the record.
        Mr. Dominguez. Oh, yes, sir. I look forward to it. I really
    appreciate the opportunity to be here, sir.
        Senator Ben Nelson. Okay, thank you. Thank you, General.
        Now, our third panel, of spouses, consists of Joyce Raezer,
    who is the recently promoted chief operating officer of the
    NMFA. Congratulations, Ms. Raezer, on your promotion; I'm
    delighted that you're willing to be here, testify today, even
    though your role in the NMFA has changed. The NMFA is one of
    the most active organizations focused on the needs of military
    families, and we give great credence to your views, so we're
    looking forward to that.
        We also have several spouses of servicemembers, who have a
    great deal of experience in dealing with the kinds of issues
    our military families are facing today.
        Connie McDonald is an Army spouse of 27 years, and
    currently lives at Fort Hood, TX. The McDonalds have two
    children. Connie has served as a volunteer and as a staff
    member with several ACS programs, including Army Family Action
    Plan, Army Family Teambuilding, and Family Readiness Groups.
    Her husband is a brigadier general on his second deployment to
    Iraq.
        Welcome.
        Mrs. McDonald. Thank you.
        Senator Ben Nelson. Paula Sumrall is the wife of an Alabama
    National Guardsman who currently serves as the assistant to the
    Chairman of the Joint Chiefs of Staff for National Guard
    matters. Ms. Sumrall brings a career's worth of experience as a
    National Guard family member.
        Welcome.
        Mrs. Launa--is that right?
        Mrs. Hall. That's right.
        Senator Ben Nelson. Launa Hall grew up as a family member
    in the Air Force, and is married to an Air Force officer
    currently assigned to the Pentagon. Mrs. Hall is an active
    family member volunteer. Her husband has just returned from his
    second deployment, so she'll have some, I think, really current
    experiences that she may be willing to share with us.
        Mrs. Mary Piacentini?
        Mrs. Piacentini. Piacentini.
        Senator Ben Nelson.--Piacentini--Piacentini?
        Mrs. Piacentini. Piacentini.
        Senator Ben Nelson. Welcome, Mary. [Laughter.]
        She's the spouse of an Army Reserve Command sergeant major,
    and is also the mother of a servicemember. She'll be able to
    give us a great deal of perspective on the issue facing Army
    Reserve families, based on her long association with the Army
    Reserve, at many levels.
        Now, Ms. Raezer has submitted a prepared statement on
    behalf of the NMFA, and it'll be included in the record. In
    light of their volunteer status, we didn't ask the other
    witnesses to submit written statements, but if anyone has a
    written statement, you might mention that so it can be
    submitted for the record.
        Mrs. McDonald, you're first up.

     STATEMENT OF CONNIE McDONALD, SPOUSE OF AN ARMY SERVICEMEMBER

        Mrs. McDonald. Thank you very much, Senator Nelson. It's a
    privilege to be here, and Senator Akaka, I appreciate your
    interest in Army families, for sure.
        Thanks for the introduction. I'm going to add a little
    caveat, that, in that 27 years, that's consisted of 17 moves to
    10 different Army installations, 3 outside of the United
    States. Currently, Fort Hood is home.
        But I will tell you, amongst all of those changes, one
    thing hasn't changed, and that's--the Army is people. How the
    Army cares for its people has remained a top priority.
        You've heard, from previous testimony, that the Army has an
    extensive array of support and services, refined over years, as
    a result of lessons learned from prior deployments and other
    family separations. Our Army family programs work very
    effectively and remain a mainstay in the family support
    network.
        One of the most important sources of support for families
    comes from the imaginative ideas of family members working with
    supportive garrison command staffs at installations across the
    Army. ACS staffs at each installation provide training to
    support family readiness groups, rear detachment commanders.
    From deployment briefings to reunion training, ACS programs and
    services assist family readiness groups and rear detachment
    commanders in their support to families.
        The addition of the family readiness support assistance has
    been crucial in helping to alleviate the strain on these
    dedicated folks. The power of this collective creative strength
    combined with the willingness to serve others is making a
    positive difference each and every day. Family members and
    community staff are readily assisting each other and families
    during this difficult and challenging time.
        I do want to reiterate that Mr. McLaurin's testimony spoke
    to many of the programs that we have within the ACS and outside
    of that, as well. One, in particular, that he spoke of was the
    Army Family Action Plan, and that's where I have a lot of
    background. It's a proponent for change and progress, and that
    proponent is talked--it's interesting, in the testimonies
    today, to hear that some of the things that--questions that you
    all have asked actually have come up through the Army Family
    Action Plan. One of those examples is, our last conference, we
    included the--our great heroes, the American wounded warriors,
    and in--the first issue that came up as a priority for our
    delegation--and our delegation comes across the Army and
    represents the demographics of our Army family is--the TBI
    rehabilitation program was our number-one issue. That was--
    Army, delegationwide, considers this an important issue.
        Among those other: traumatic servicemembers group life
    insurance, annual supplement, a copay for replacement parts for
    our wounded soldiers who have lost their limbs. There is also
    an issue on convicted sex-offender registry for outside the
    continental United States, specifically. Our list of strengths
    and challenges we do at the conference, where we ask for our
    constituency to turn around and say what is good now and what
    is hard now. We have a list of those, as well, and we have that
    in the packet for you. Indeed, we have a written statement for
    you that I have, on my impressions on how the programs are
    going.
        I do want to tell you that our process in the Army Family
    Action Plan starts at the installation, but comes all the way
    up to a General Officer Steering Committee that is chaired by
    our Vice Chief of Staff of the Army. In that process, it's
    always interesting to see the passion that comes up with
    prioritization. It's not asking for the moon. It's, ``This is
    what we'd like most.'' Each conference also identifies four
    most valuable services provided by the Army, the most critical
    issues that are currently being worked, again, the strengths
    and weaknesses of what we've been going through as deployments.
    This information is given to the commanders as a snapshot of
    how things are right now. What does it look like? A dipstick
    to, say, a customer's comment card. That information is used,
    and it's brought to the forefront.
        Because this program is set up the way it is, it's one of
    the few programs--and I think maybe the Army may be unique in
    this--that it's a grassroots program, where the customer talks
    directly to senior leadership, and senior leadership responds
    back. That's a wonderful program, and we're very thrilled with
    it, and glad to hear that a lot of the things that you have
    concerns about, we also have involved in that program.
        It's recognized across the Army as a vital program for
    leadership. The folks who are the constituents of it know that
    they have a voice to leadership, and that is important to us.
    So, again, in your packet, there's some information about that
    program.
        One of the other programs we have, that meets twice yearly,
    is the Army Family Readiness Advisory Council, or AFRAC. It's
    consisting of senior spouses to include the spouse of the Chief
    of Staff of the Army and the Vice Chief of Staff of the Army,
    spouses of Army commands and command sergeants major spouses,
    Reserve component included. That program does a lot of looking
    into how are we doing and getting back feedback. It's a two-way
    street.
        Again, I want to reiterate Mr. McLaurin's testimony about
    the many programs we have, and it is an impressive list. But
    one thing I would like to let you know is that, although Army
    families are resilient and have a great history of getting
    things done, we can't do it alone, and we shouldn't have to.
    Army family programs enhance that resiliency by providing care,
    support, training, and meaningful opportunities for social
    bonding. There must be a sufficient infrastructure, independent
    of volunteer support, properly resourced to deliver consistent
    quality services to all components in a seamless manner.
        Our families and family program staffs are doing heroes'
    work, and they are tired. Continued support from our country is
    imperative. Every day, I see the toll this operational tempo is
    taking on families and supporting staff. I have concern about
    compassion fatigue among our families and our invaluable family
    program staff members. Everyone's heart is with us, and family
    program staffs continue to do what they can with what is
    available, but their fight should be for our soldiers and our
    families, not for resources.
        I did want to let you know that there are a lot of
    community supports. Senator Akaka, you had questioned about
    that. I will tell you, the great town of Killeen has a grouping
    of programs called ``Beyond the Yellow Ribbon.'' One of the
    things that is a great initiative that they've taken on, that
    is very useful, is the local water company, on their bill every
    month, sends out the ACS programs that are available to Army
    families. That was just an initiative on their part. The great
    town of Lawton, Oklahoma, is a phenomenal support for the
    military families at Fort Sill, as well.
        So, there's tremendous community resources out there, and I
    do believe that our families do want to be a part of the
    community, as well as part of the installation.
        I appreciate your interest in Army families, and I look
    forward to any questions you may have.
        [The prepared statement of Mrs. McDonald follows:]

                     Prepared Statement by Connie McDonald

        Good afternoon, I'm Connie McDonald, the wife of BG Mark McDonald
    who is currently with III Corps serving his second tour in Iraq. Today
    I am here to talk with you as a military spouse of 27 years, and I
    appreciate the opportunity to share with you what I think are some
    great programs the Army has put in place to support families. As a
    military spouse I have moved 17 times, calling 10 different Army
    installations ``home'', right now ``home'' is Fort Hood, TX. Our two
    children have grown up in the Army culture during a time of dramatic
    change for this country and the world. But over the years there is one
    thing that has not changed--and that is--that the Army is people--and
    how the Army cares for its people remains a top priority.
        You have heard from previous testimony that the Army has an
    extensive array of support and services, refined over years as a result
    of lessons learned from prior deployments and other family separations.
    Army family programs work very effectively and remain a mainstay in the
    family support network.
        One of the most important sources of support for families comes
    from the imaginative ideas of family members working with supportive
    garrison commanders' staff at installations across the Army. Army
    Community Service staff at each installation provides training to
    support Family Readiness Groups, and Rear Detachment Commanders. From
    deployment briefings to reunion training, ACS programs and services
    assist FRGs and Rear Detachment Commanders in their support to
    families. The addition of the Family Readiness Support Assistants has
    been crucial in helping to alleviate the strain on these dedicated
    folks. The power of this collective creative strength, combined with a
    willingness to serve others, is making a positive difference each day.
    Family members and community staff are readily assisting each other and
    families during this difficult, challenging time.
        I would like to tell you about a program I consider to be one of
    the strongest tools a commander has at his or her disposal, I'd like to
    take a few minutes to tell you about this unique program--The Army
    Family Action Plan (AFAP). The AFAP began as the result of spouses who
    believed that the voice of the Army family needed a platform to be
    heard by senior leadership--these spouses called together people from
    various demographic groups and solicited their views regarding the most
    significant issues affecting the well-being of Army families. Quickly
    this grew to include soldiers, Active as well as Reserve component,
    Department of the Army Civilians, and retirees. Its 24-year history of
    success is a testament to the commitment the Army has made to its
    family. No other service has a process like this--where the grassroots
    can identify a concern and recommend a solution directly to leadership
    for resolution--a customer comment card, if you will.
        How does the Army do this? With dedicated staff and a host of
    volunteers the process begins at the installation where forums are held
    to identify issues and concerns affecting standards of living on the
    installation. Delegates, who are selected as a cross section of the
    installation's population, gather in workgroups to discuss and then
    prioritize issues for leadership to resolve. Issues cross a variety of
    categories from medical and dental concerns, pay and entitlements, to
    child care and family support. Not surprisingly, about 85 percent of
    the issues are truly local installation issues for the garrison
    commander and his/her staff to ``fix''.
        When issues are determined to be out of the local resources ability
    to resolve, they are sent to the next level where Army Commands, Army
    Service Subordinate Commands and Direct Reporting Units convene forums
    to discuss and prioritize issues that will then be submitted to
    Headquarters Department of Army for the annual worldwide symposium.
    Again, the workgroup discussion and prioritization process is repeated
    adhering to the delegate model used at the installations. Those issues
    are presented to the most senior Army leadership for resolution. Each
    year, the conference pursues resolution of critical quality of life
    issues. In this testimony for the record, a chart showing the diversity
    of these issues is available for you. It is impressive. The
    headquarters monitors the issues and their progress through a strict
    protocol of regular guidance, direction, and leadership approval at
    semi-annual General Officer Steering Committee meetings. Itself a
    proponent for change and progress, AFAP also recognizes that as the
    operational tempo of the Army changes, there is a need to adapt
    programs and policies to continue to meet the needs of our soldiers and
    families. Two examples of that flexibility are: 1) Outside the
    continental United States commanders may submit concerns directly to
    the General Officer Steering Committee for consideration; 2) at the
    November 2006 HQ conference, a Wounded Warrior workgroup was added to
    address concerns/issues impacting their quality of life. Each
    conference also asks delegates to identify the four most valuable
    services provided by the Army, the most critical issues currently being
    worked from earlier conferences and strengths and challenges associated
    with deployment and family support. This information is used to give
    commanders a ``snap shot'' of what is important to his constituents and
    allows commanders to have real-time information the ``people's
    perspective'' of adjustments and improvements that will increase
    recruitment, retention, and work-life satisfaction.
        AFAP is recognized and supported by local commands as well as
    senior Army leadership and is the force behind hundreds of legislative,
    regulatory and policy changes, and program and service improvements.
    Our soldiers, retirees, civilians, and families know AFAP is their
    ``voice'' in the Army's future. Leadership has embraced this innovative
    program.
        A second program the Army has initiated to obtain input from
    families is the Army Family Readiness Advisory Council (AFRAC) which
    meets twice yearly. The AFRAC is co-chaired by the spouse of the Chief
    of Staff and Vice Chief of Staff of the Army. Membership is comprised
    of the following: spouses of Army Command Deputy Commanders/Chief of
    Staff; Command Sergeants Major; Director, Army National Guard and
    Chief, Army Reserve; Army National Guard and Army Reserve Command
    Sergeants Major, rotating Army Service Subordinate and Direct Reporting
    Units reps (Commander, Command Sergeants Major Spouses); rotating Army
    2-star Joint Command representatives (Commander and Command Sergeant
    Major Spouse); SMA (DA-level) representative, and select volunteers.
    The AFRAC members look at issues that impact quality of life from a
    strategic and global Army-wide perspective. Advise senior leadership on
    the direction of Army Family Programs, assess and recommend solutions
    for evolving issues; establish short and long-range goals and
    objectives, serve as advocates for family programs. The council serves
    to enhance soldier readiness, increase program effectiveness, and
    connect families to the Army.
        Although Army families are resilient, and have a history of getting
    things done, we can't do it alone and shouldn't have to. Army family
    programs enhance that resiliency by providing care, support, training,
    and meaningful opportunities for social bonding. There must be
    sufficient infrastructure, independent of volunteer support, properly
    resourced to deliver consistent quality services to all components in a
    seamless manner.
        Our families and family program staffs are doing ``heroes work''
    and they are tired. Continued support from our country is imperative.
    Every day I see the toll this operation tempo is taking on families and
    supporting staff. I have concerns about compassion fatigue among our
    families and our invaluable family program staffs. Everyone's heart is
    still with us and family program staffs continue to do what they can
    with what is available--but their fight should be for our soldiers and
    Army families, not for resources.
        This concludes my prepared testimony, I am happy to address your
    questions.

        Senator Ben Nelson. Thank you. The packet that you
    mentioned will be made part of the record, without objection.
        Mrs. Sumrall?

        STATEMENT OF PAULA SUMRALL, SPOUSE OF A NATIONAL GUARD
                             SERVICEMEMBER

        Mrs. Sumrall. First, let me say that I come from a
    background that is perhaps a little bit different from a lot of
    the folks here who are full-time military spouses. My husband
    is a full-time guardsman, at this point, but previously he was
    a traditional guardsman. He's been in the Guard for 40 years.
    During that time--we've been married 19 years--we've moved 11
    times, because he's been full-time Guard. I taught school for
    30 years, a good number of those years with DOD schools in
    Germany. So, I'm very familiar with military children, both
    from the Active component, as well as working in the public
    school system with Reserve component children.
        I am the training coordinator for the Northern Virginia
    ESGR, so that means--Employer Support for Guard and Reserves--
    and that means that I have also dealt somewhat with the job
    issues of our military members, Reserve components, who are
    coming back, looking for employment or looking to change jobs.
        I'm also in contact with a lot of parents of guardsmen, in
    that I am currently writing a book for the parents of
    guardsmen, like Vicki Cody did for Big Army. So, I have had a
    tremendous influx of e-mails from a lot of these folks,
    especially from the Red Bull Brigade, out of Minnesota, that
    extend it. So, I get it from all angles here.
        I'm a little concerned that I hear Guard mentioned in a lot
    of things, but I don't really know that their concerns and that
    their problems are fully understood, much less addressed.
        Geography always creates a big problem for the National
    Guard members. We may have people--for example, in the 20th
    Special Forces, we draw people from nine different States. In
    2002 when they first deployed to Afghanistan, it was very
    difficult to stay in touch with all of the family members, just
    simply because of the wide spread of where they were. Even
    within States, you may have someone, say, that drills in
    Montgomery, Alabama, but they live in Mobile. That means that
    those families probably have never even met. So, when you talk
    about the continuity and the flow of what goes on within the
    Active component family programs, in the Guard we just simply
    don't have that, and probably never will, despite the fact that
    we tend to pull together and make the best of a bad situation.
        I will give you an example of some of the things I've seen
    the Guard have to go through.
        Prior to my husband's current position, he was at Central
    Command, in Florida, deployed most of the time. I had the
    privilege of sitting in Tampa with four hurricanes, one right
    after the other--Charlie, Frances, Jean, and Ivan. I saw any
    number of Florida guardsmen that were activated for this--
    whichever one, sent off. Their families were left wherever they
    were, no power, the trees dumped across the cars, the roof
    missing. They were unable to get to their families to assist
    them. Now, I point this out, because a lot of the focus is on
    deployment, which is, of course, a very significant and
    important thing. But the Guard serves another function, and
    when you stop and you think that you have families that are
    sitting there with no power, they can't keep the baby's milk
    cool, all of this kind of stuff, this impacts on our families.
    If you come from an area where you've had to go and deal with
    the tornados or the floods or the snowstorms or the forest
    fires, it's not just a certain area of our country that's
    impacted, it's all of our guardsmen.
        When you look at most of the programs that focus on
    families, the focus is the spouse and the kids, not the
    parents. This is the reason I'm writing the book, and there's
    obviously a big need for this, to include not only the
    immediate family that's right there, physically, with the
    soldier or the airman, but the extended family. This is another
    issue that Guard faces.
        I will tell you right now that one of the primary things I
    think that I would say that needs to be fixed is that we hear a
    lot of this about the coming back, the transition assistance
    when our soldiers and airmen first come back. One of the
    biggest problems that the National Guard has is the time spent
    at the demobilization station is simply too brief. They don't
    have people there who understand the situation in the area that
    they're coming from.
        For example, Fort Dix, NJ, you arrive. They--let's say,
    maybe, 4 in the morning. By 7 or 8 o'clock, they're starting
    briefings. Someone at Fort Dix, NJ, cannot tell you what the
    job opportunities are in Wetumpka, AL. They don't know.
        We need someone, back at the home level, that can address
    job issues, that can address medical issues that are pertinent
    for that area. We need an extended time for that. Now, this
    would require money, of course. But to--and one of the things,
    too, that I've heard big complaints about is that at least 50
    percent--and that's a modest estimate, because I have heard as
    high as 85--at least 50 percent of the DD-214s are incorrectly,
    incompletely done at that demobilization site. So, that creates
    another problem when our guardsmen return home.
        The fact that the soldier is not usually right there,
    located immediately with their family members, they're unable
    to make the best decisions with regard to health and dental
    care. I don't know who handles that type of thing at your
    house, but, I guarantee you, at my house, I do it. If I were
    not there to tell my husband, ``Oh, no, honey, you'd better
    sign up for this, or you'd better look at this,'' there could
    be a problem. So, that's another one of the problems about
    that.
        When you have people coming in, especially Guard folks, who
    are not used to this military mindset, the main thing they want
    to do is get home. They're tired. I, frankly, don't see how the
    Active component manage to digest all of what they need to when
    they come back at a demobilization. So the Guard really has it
    tough, because it's just a different thing.
        Recently, there was a poll taken of Guard families, and
    most of them, surprisingly--to us even--that they don't
    consider themselves military families. They're part of
    communities. Their churches, their schools, their places of
    business are somewhere other than Fort Hood, Fort Dix, Fort
    Campbell. They're part of a community, and they're feeling a
    disconnect there, when they come in, because their coming home
    is different from when the Active component does.
        I think that's probably about the most that I could say. I
    mean, I would like to be able to tell you great and wonderful
    things. I can tell you some great and wonderful things. But I'd
    rather you know what needs to be fixed.
        Senator Ben Nelson. Yes.
        Mrs. Sumrall. Thank you.
        Senator Ben Nelson. Thank you.
        Mrs. Hall?

     STATEMENT OF LAUNA HALL, SPOUSE OF AN AIR FORCE SERVICEMEMBER

        Mrs. Hall. Good afternoon, Senators. Thank you so much for
    this opportunity to speak with you. I'm very honored to be
    here.
        My name is Launa Hall. I've seen military life from a lot
    of angles, beginning with my birth, at Webb Air Force Base. My
    father flew C-130s in Vietnam, and went on to serve for 20
    years. I served, myself, for almost 6 years, as a junior
    officer. I met my husband in Reserve Officer Training Corps,
    and he's currently an Active Duty Air Force officer. He's
    deployed twice, and has just returned from one of those
    deployments.
        The Air Force has moved me 19 times in my life. I've lived
    on base, off base, in geographically remote locations,
    stateside and overseas. I've used the facilities and services
    at scores of bases. My friends, neighbors, the people I work
    with and volunteer with are largely military families. I'm
    comfortable saying that I know this lifestyle. In fact, it's
    the only life I've known.
        This lifestyle is increasingly characterized by
    deployments, as I don't need to tell you. The more our airmen
    deploy, the more likely they are to miss major events in their
    families' lives, such as the birth of their children. That's my
    special area of concern, is women giving birth while their
    servicemembers are deployed.
        Typically, this woman is not only separated from her
    husband, but she's far from her own family, too. Also,
    typically, Air Force spouses will rally to her side, with
    meals, babysitting for any older children, and maybe even labor
    support during her birth, because that's the way we care for
    each other.
        But I feel that this is too important an issue to rely upon
    the bigheartedness of volunteers. It's too much to assume other
    military spouses are just going to cover it when they're
    dealing with the deployment of their own airmen or they're in
    the middle of a move or they're at least enduring a scorching
    operations tempo.
        A pregnant deployed military spouse needs a doula. That's
    d-o-u-l-a, doula. New term. Very old concept. It's a labor
    assistant to be with that woman when we've taken her husband
    away. A birth doula is a certified labor support professional,
    trained and experienced in childbirth, who accompanies the
    mother in birth and provides emotional support, physical
    comfort, and information. Study after study show that parents
    who receive doula support feel more secure and cared for during
    their birth, they're more successful in adapting to their new
    family dynamics, and they have less postpartum depression. Ask
    a woman who's employed the services of a doula, and she's
    likely to tell you that her doula was essential.
        The unusually high stress of a birth in a family divided by
    deployment demands the professional quality support of a birth
    doula, and, furthermore, a postpartum doula who's trained and
    certified to assist that new mother in baby-care and self-care,
    and identify a mom who needs treatment for postpartum
    depression. If this sounds like a lot of support, I agree, it
    is, and spouses in these special circumstances need no less.
        I'm not the first one to think of this. Naval Hospital
    Charleston trained corpsmen to be doulas. The reports I read
    indicated great success with that program, though it was
    eventually discontinued, as many good ideas are, for lack of
    staffing.
        Operation Special Delivery is a network of certified doulas
    who give away their professional services for free to pregnant
    spouses of deployed servicemembers. Because military spouses
    who are also doulas tend to be the ones who's hearts lead them
    to this kind of volunteer work, what we're basically talking
    about here is military spouses giving away their income as
    doulas. While this group does phenomenal work for free--and we
    should send flowers to every last one of them--they are too few
    to meet the number of requests they receive. In fact, in the
    larger military communities, they don't come anywhere close.
    It's an unmet need, Senators.
        Instead of expecting a pregnant spouse to cobble together a
    supported birth with volunteers and untrained friends, and
    maybe her mom flying in for a few days, let's fund a doula for
    her. Let's mitigate the stress she's under. Let's allow the
    father-to-be, that deployed airman, to relax and to focus on
    his mission knowing that a trained labor support professional
    is at his wife's side before, during, and after the birth of
    their baby.
        On a different note, my personal experience of base support
    during my husband's deployment was outstanding. Programs at the
    Airman and Family Readiness Center and the Youth Center kept me
    well informed of resources available to me, and kept my
    husband, our two children, and me in contact with calling cards
    and access to morale calls. An Internet cafe at his deployed
    location, where we could hook up our Web cams. While I didn't
    end up needing a lot of the resources available to me, I
    absolutely knew that I could have picked up the phone with any
    issue, and I knew who to call, and I would have been flooded
    with assistance. More to the point, my husband knew that,
    allowing him to focus on his mission.
        The Air Force has a reputation of solid support for their
    families, and it's well-deserved. I'd like to see it furthered
    in the special circumstances of deployed families having
    babies.
        Thanks for listening. I'd be honored to answer any
    questions about this issue I brought up regarding doulas, any
    specific military hospital issue that I'd like to let you know
    about, if I have the chance, and any other family support
    topics. Thanks, again.
        Senator Ben Nelson. Thank you.
        I'm going to try it again.
        Mrs. Piacentini. Okay.
        Senator Ben Nelson. Mrs. Piacentini?
        Mrs. Piacentini. Perfect.
        Senator Ben Nelson. Thank you. [Laughter.]

        STATEMENT OF MARY PIACENTINI, SPOUSE OF AN ARMY RESERVE
                             SERVICEMEMBER

        Mrs. Piacentini. Thank you for giving me the opportunity to
    be here this afternoon. I appreciate that.
        I am the spouse of an Active Reserve soldier for the
    Military Intelligence Reserve Command. He is at Fort Belvoir.
    We've been here for 6 months. Prior to our coming to the
    Virginia area, he was the Command Sergeant Major at the United
    States Army Reserve Command in Atlanta, Georgia, Fort
    McPherson.
        At that time, I was given the opportunity to be a full-
    fledged volunteer and part of the family programs for the Army
    Reserve, being a representative for them and also for the
    families. I was able to come in contact with family members,
    not just spouses, but parents, grandparents, aunts, uncles, and
    siblings. Over 4 years, I traveled extensively to meet with
    them to see what their issues were, how things were going, what
    was good, what was not good.
        From all of my travels, I found that in the Army Reserve
    we're geographically dispersed, as the Guard is, and we don't
    have access to the same facilities and resources that the
    Active Army has, and the other military institutions.
        Our Family Programs Office does the best they can with the
    resources that they have, of having personnel out there, but I
    found, in the field, the communication wasn't the best, because
    they just cannot stretch their arms far enough and wide enough.
    That does come down to resources in the way of money, of
    getting enough personnel out there.
        The Army Reserve has recently been able to bring onboard,
    in their family programs, about 100 or so new individuals to
    help with family programs, and that will be a tremendous boost
    for families. But my concern is, as the families' concern is,
    that the information and the one-on-one contact with the Army
    Reserve is not being made with the families, because there
    aren't enough people, bottom line, face to face.
        Another issue that affects them is the medical resources
    and not understanding the medical resources. I have also had a
    current experience with the Army medical system. I am a medical
    professional, myself--working in the private sector--and I have
    found that dealing with the military health institution is not
    quite user-friendly, not only for the soldier--they're used to
    it--but for the civilian and family member. Being a health
    professional, I feel that standard of care is the same whether
    it's an Army hospital or a private hospital, and I think the
    Army falls short there.
        I am also the mother of a first lieutenant. He is with the
    4th Infantry Division out of Fort Hood. His last deployment was
    a very stressful time for me, but I got through it with a lot
    of communication. As a seasoned Army Reserve spouse and now
    Army mother, I was able to ask my son the questions I needed,
    to get the resources I needed. But those questions aren't out
    there for the average Army military family to use and to get
    the help they need.
        We need to do a much better job in getting information out
    to everyone, not just Active Army, but the Army Reserve,
    National Guard, everyone. It's not always getting out there.
        As I have noticed, living on an Army installation through
    different periods of our Active Army life, that resources are
    dwindling on the installations, and I'm seeing quality-of-life
    activities cut or curtailed. I see that as being unfortunate
    for the military families. So much is being taken away from
    them to fund other things, and that's understandable, but when
    you do cut the available resources and activities for military
    families, you are actually cutting off the leg or the line that
    will connect the soldier to the military. Family readiness is
    soldier retention.
        I want to thank you for your time today. I, too, didn't
    want to be a downer on important issues, but these are the
    major issues. A lot of good is being done, but there is also a
    lot of work to be done. I hope that the funds are there, and
    they increase, for both the soldier and the families. We need
    to keep our families intact so our soldiers can do their
    mission.
        Thank you.
        Senator Ben Nelson. Thank you.
        Ms. Raezer? Welcome back, and congratulations.

      STATEMENT OF JOYCE WESSEL RAEZER, CHIEF OPERATING OFFICER,
                  NATIONAL MILITARY FAMILY ASSOCIATION

        Ms. Raezer. Thank you, Senator Nelson. I appreciate the
    kind words. I also appreciate this invitation from you and
    Senator Akaka, on behalf of the NMFA and the families we serve,
    to sit on this panel with these wonderful spouses to talk to
    you about the state of military family readiness today.
        These spouses--and, in fact, all the other military family
    volunteers--are on the front lines of family readiness. As they
    prepare for deployment, endure the challenges of deployment,
    which include deaths and injuries in the unit, and then recover
    from a deployment, even while they know it's soon time to
    prepare for another deployment, they remain the glue that holds
    their community together.
        They, and all families, are force multipliers, and, as
    such, families need and deserve a military support structure
    that ensures a consistent level of resources to provide robust
    quality-of-life, family health, and family readiness.
        I'd like to echo Connie McDonald's remarks about the
    importance of the community. Families also need the help and
    comfort of their local communities and, indeed, the whole
    Nation, so that everyone understands and supports their
    sacrifice.
        NMFA's extensive written statement details many things that
    we hear from families about what programs are working well,
    what gaps must be filled, what new challenges are emerging.
    NMFA has been gratified to see the emergence of a broad
    spectrum of programs and initiatives designed to improve family
    readiness and reach out to families. You've heard about many of
    those today. Military OneSource, expanded access to child care
    services, increased counseling resources, outreach to National
    Guard and Reserve families are making a difference in
    connecting families with each other and appropriate support--
    not reach everybody, but definitely making a difference.
        But, while wonderful, many of these programs and the
    offices and agencies responsible for them are not yet well
    coordinated, often leaving families confused about where to go
    for the appropriate information and assistance. Multiple
    deployments, repeated extensions, a lack of predictability, and
    diminished time at home between deployments continue to take
    their toll on military families.
        In measuring that toll, NMFA often looks at two segments of
    our community: family volunteers and the children of
    servicemembers. We believe the training and support system for
    volunteers, like these spouses we have here today, has not kept
    pace with the demands placed on them by our military, by other
    families, and by our volunteers themselves. In addition to a
    more robust training and support structure, these military
    officer and enlisted spouses, and the parents who volunteer
    with many of our Guard and Reserve units, must be able to
    depend on professional support personnel tasked to back them up
    and ensure families in crisis receive appropriate assistance.
        Military parents are increasingly concerned, not just for
    the well-being of their children today while dealing with
    deployment, but also for the unknown in the future. They ask,
    ``What will the long-term effects of multiple deployments,
    frequent separations from their parent, and the worry for their
    deployed parent safety be for military children?''
        NMFA is doing its small part to support the children of
    deployed servicemembers through it's Operation Purple camps. In
    the summer of 2007, we will be serving 3,500 children of
    deployed servicemembers in 26 States. We're pleased the
    military services have stepped up their child and youth support
    services. But we need more research to help all of us
    understand the effects of deployment on children, anticipate
    the long-term issues, and develop better support programs to
    help parents help their children. Parents and children need
    better access to the full spectrum of mental health services.
    These services must also be available for the most vulnerable
    of our families, those whose servicemember has been injured or
    wounded, or whose servicemember has paid the ultimate sacrifice
    for our Nation.
        While all of us in the family readiness arena must focus on
    deployment and crucial family needs related to a long war, we
    cannot forget that, in times of war, the military's bedrock
    quality-of-life programs become even more vital to families and
    contribute to their readiness. To ensure servicemembers remain
    focused on the mission, families must have: quality, affordable
    housing in a safe neighborhood; high-quality, caring schools
    for their children; access to a doctor's appointment when they
    need it. I'm sorry Senator Chambliss is gone, because we, too,
    have heard problems about contracting issues in military
    hospitals, and believe that's why so many of our families have
    such a hard time getting an appointment when they need it. So,
    we congratulate him for his work in researching this issue.
        Families also need topnotch affordable childcare, and
    education and career opportunities for the military spouse.
    They must be assured that when the military orders them to
    move, their valued possessions will be handled with care, and
    their out-of-pocket costs are low. They not only must have
    opportunities to improve their financial savvy, but also be
    protected from the predators who take advantage of their youth,
    arrogance, and trusting nature to separate them from their
    hard-earned pay.
        Senator Nelson, we, too, share the concerns you voice about
    the proposed regulations for the Talent-Nelson Act, and we
    appreciate your continued interest in that. We have included
    some of our thoughts on those regulations in our statement, on
    page 11.
        We especially ask you to see that critical base operations
    and quality-of-life programs are not robbed to meet war needs.
    Please ensure that the measures undertaken today in the
    interest of cutting costs and improved efficiency do not also
    destroy the military community.
        Given that our military has been in war status for more
    than 5 years, NMFA also thinks it's time for the Office of the
    Secretary of Defense and the Services to evaluate all those new
    programs and initiatives they've created to meet wartime needs,
    and that they currently fund through those wartime supplemental
    appropriations. Military family readiness programs and quality-
    of-life facilities require dedicated, ongoing funding, not
    emergency funding. Thus, we hope DOD would incorporate the most
    effective of the initiatives created to meet war emergencies
    into the ongoing array of military quality-of-life programs,
    and budget for them through the regular DOD budget process.
    NMFA is concerned that if these programs remain tied to wartime
    funding, they might go away while families still need them.
        The NMFA appreciates your understanding that strong
    families equal a strong force and that family readiness is
    integral to servicemember readiness. The cost of that readiness
    is a cost of the war and a national responsibility. We thank
    you for shouldering that responsibility, just as servicemembers
    and their families are shouldering theirs.
        Thank you, again.
        [The prepared statement of Ms. Raezer follows:]

                   Prepared Statement by Joyce Wessel Raezer

        Chairman Akaka, Chairman Nelson, and distinguished members of these
    subcommittees, the National Military Family Association (NMFA) would
    like to thank you for the opportunity to present testimony today
    discussing the tie between military readiness and the readiness of
    military families. Once again, we thank the members of the Senate Armed
    Services Committee for your focus on the many elements of the quality
    of life package for servicemembers and their families: access to
    quality health care, robust military pay and benefits, support for
    families dealing with deployment, and special care for the families of
    those who have made the greatest sacrifice.

                                   READINESS

        Webster defines readiness as ``the quality or state of being
    prepared or capable of promptly reacting.'' Military readiness must
    include quality training, state-of-the-art equipment, highly motivated
    personnel, and a strong commitment to the ideals of service and
    country. Developing quality training and procuring equipment are fairly
    straightforward processes. Benchmarks are easily determined and results
    are easily measured. Motivation, dedication, and commitment, however,
    are not so simply procured. Servicemembers must have faith in their
    leadership in order to willingly step into harm's way for the good of
    the Nation. This faith is cultivated in a variety of ways. Perhaps none
    is as important as the belief that the family will be taken care of
    while the servicemember is supporting the mission and defending the
    Nation. A key component of readiness is motivation. A key component of
    motivation is family support and security.
        As we speak, policy changes are being implemented that will affect
    many military families. The Army is extending Active Duty deployments
    by 3 months, from 1 year to 15 months. Several National Guard units are
    being readied for a second deployment, on an accelerated timetable from
    the guideline calling for 1 year deployed and 5 years at home.
    Readiness is threatened because of a shortage of equipment for training
    and the fact that training itself is being shortened. The readiness of
    the world's greatest fighting force is being threatened. How does
    family readiness work to make a difference, to make our warriors ready?
        Servicemembers and their families feel that they are partners with
    DOD and the Federal Government in their service to the Nation. DOD
    recognized this partnership several years ago in its development of the
    social compact. It is important for servicemembers and families to see
    that promises are kept, that families have time to rebuild
    relationships after deployment, that retirees have access to affordable
    military health care, that the wounded and their families are well
    cared for, and that the survivors of those who have made the supreme
    sacrifice are cherished and honored.
        We often hear of how the military ``grows their own''. Many
    children of military families follow their parents into a life of
    military service. If they perceive a degradation of benefits and
    programs for their parents' generation, if they remember their
    childhood as a time of stress and separation from their parent, will
    they continue to volunteer for this life of selfless service? NMFA
    asserts that keeping promises and setting realistic expectations is
    essential to maintaining the readiness of a quality force.

                    HOW DO FAMILIES CONTRIBUTE TO READINESS?

        Families are an integral part of the military readiness equation,
    as supporters of the servicemember and of his/her mission. It has
    become common for speakers before this committee to highlight that
    today's military ``recruits the servicemember and retains the family.''
    Spouses also point out this link. As one applicant for this year's NMFA
    spouse scholarship program wrote: ``Who holds down the fort while our
    soldiers and sailors are deployed? Who gives them encouragement and
    support as they face the daily challenges of the military? The spouse.
    Happiness often lies in personal development, and one happy military
    couple means one motivated who is ready to respond to the call of
    duty.''
        The Nation has an obligation to support the quality of life for
    servicemembers and their families not only because it is the right
    thing to do, but because strong quality of life programs aid in the
    retention of a quality All-Volunteer Force. At a recent hearing, Master
    Chief Petty Officer of the Navy Joe R. Campa, Jr. summed up the
    importance of caring for families: ``Quality of life does affect
    retention and it impacts recruiting. Young Americans deciding whether
    the Navy is right for them look at quality of life initiatives as
    indicators of the Navy's commitment to sailors and their families. Our
    goal is to leave no family unaccounted for or unsupported. Our vision
    of today's Navy family is one who is self-reliant yet well connected to
    our Navy community and support programs.''
        Military families are proud of their servicemembers and of their
    service to the Nation. Family members serve as well. Last year, General
    Peter Pace, Chairman of the Joint Chiefs of Staff, told a group of
    military families: ``Spouses and families serve this country as well as
    anybody that's ever worn the uniform. In some ways it's harder for the
    folks back home than it is for the troops deployed in places like
    Afghanistan and Iraq.''
        Family members serve in a myriad of ways even while existing in
    their own constant state of readiness. As they prepare for deployment,
    endure the challenges of deployment, and then recover from a deployment
    even while they know it will soon be time to prepare for another, they
    remain the glue holding their community together. Among the hardest
    working are the family members who volunteer as family support staff in
    commander's programs--the Family Readiness Group Coordinators, Key
    Volunteers, Ombudsmen, and Key Spouses. The family readiness volunteers
    do not work alone, but enlist the help of other volunteers to make
    phone calls, plan meetings, organize fund raisers, and gather folks to
    fill the never ending parade of care packages to their deployed
    servicemembers. In addition to providing support to their unit and its
    families, military family volunteers continue to serve the installation
    community in ways they always have: as Red Cross workers, home room
    moms, thrift shop volunteers, chapel religious education teachers,
    spouse club members. They perform these duties as single parents, who
    have the added job of providing a sense of normalcy and comfort to
    others dealing with the stress of deployment. Those left behind step up
    and take over as soccer coaches, scout leaders, and serve in other
    community support positions left vacant by deployed servicemembers.
    General and Flag Officer spouses serve as advisors to family groups and
    mentor younger spouses. Military family volunteers come forward, not
    only on military installations, but in towns and cities across the
    country, to serve in their local armories or Reserve centers, work with
    National Guard youth programs and reach out to other families in their
    units. In these communities, parents and siblings of deployed National
    Guard and Reserve members serve with spouses in many volunteer
    positions.
        Deployed servicemembers rely on their families for individual
    support. Letters and packages from home, phone calls, and e-mails help
    improve the morale and ease the concerns of servicemembers, allowing
    them to better deal with the chaos and danger of the combat zone.
    Servicemembers are reassured when their families feel secure, are well
    informed, and aware of support resources. If problems occur, the
    families know where to turn for help and don't need to burden the
    deployed servicemember with worries that he or she can do nothing
    about. Without these tools, if a crisis arises the alternative is for
    the servicemember to return to solve the problem.
        The Army's recently-released Third Mental Health Advisory Team
    report documents the need to address family issues as a means for
    reducing stress on deployed servicemembers. The team found the top non-
    combat stressors in theater were deployment length and family
    separation. They noted that soldiers serving a repeat deployment
    reported higher acute stress than those on their first deployment. They
    found that multiple deployers felt they were better prepared due to
    improved pre-deployment training, but they also acknowledged their
    families are experiencing more stress. The study also determined that
    leading suicide risk factors were relationship issues at home and in
    theater.

              NMFA believes our Nation must make a commitment to ensure
            military families remain strong and resilient, with the tools
            to handle deployments and the problems that emerge so their
            servicemembers may remain focused on the mission, secure in the
            knowledge their families are safe and secure, both physically
            and emotionally.

                         CHALLENGES TO FAMILY READINESS

        In this sixth year of the global war on terror, as many
    servicemembers and families are experiencing their second or third
    deployments, family readiness is more imperative than ever. The needs
    of and support required for the family experiencing repeated
    deployments are often different than those of the first deployment. The
    family that was childless in the first deployment may have two toddlers
    by now. Middle schoolers have grown into teenagers with different
    needs. Parents age and the requirements of the ``sandwich generation''
    grow. Commanders cannot assume that ``experienced'' families have the
    tools they need to weather each new deployment successfully. The end
    strength increases in the Army and Marine Corps will bring many new
    families needing to learn the basics of military life and family
    support while experiencing their first deployments.
        The effect of multiple deployments is burning out many volunteers
    and families. At high operational tempo installations such as Fort
    Bragg, Camp Pendleton, and Fort Drum, volunteers and staff are
    constantly on alert, dealing with families at multiple stages of
    deployment. Sustaining a high level of engagement with families at rear
    detachment and installation commands is extremely draining. New
    challenges seem to constantly appear, including: the grief of unit
    families when a servicemember is wounded or killed, extensions, and
    reductions in funds and support staff. Many spouses who hear military
    and political leaders' pronouncements of a long war wonder if there is
    ever a light at the end of the tunnel.
        NMFA is especially concerned with the burnout of the most
    experienced family volunteers and the command spouses who often must
    shoulder much of the burden for the well-being of families within their
    servicemembers' commands. Senior spouses have stated to NMFA that
    training has not kept up with the challenges they encounter. Although
    the Services do a good job of providing educational opportunities for
    spouses of newly-appointed commanders, much of the training received at
    various Army senior Service courses, for example, has not changed since
    the start of the global war on terror. The reliance on military family
    member volunteers as the front line of family support and readiness has
    not changed, either, despite the increased complexity of the challenges
    they face. Military families know they now must exist in a ``new
    normal,'' in which servicemembers' repeated deployment to combat zones
    is a given. The spouse leaders they turn to for guidance and mentorship
    must have the tools and support they need to assist others. They need a
    clear picture of what is expected of them and assurance there are
    professional resources available to them.
        NMFA believes creating a three-pronged approach to unit family
    readiness might be the solution. The family readiness triad would
    consist of volunteer, Active Duty, and civilian components. The
    volunteer, such as a Key Spouse, Family Readiness Group leader, Key
    Volunteer, or Ombudsman needs standardized training from professionals
    in order to play an integral role in the command team and provide the
    communication conduit to military families. The Active Duty military
    member who is charged by the commanding officer with taking care of
    families must be trained and committed to that duty. Professional
    support by trained civilians tasked specifically to provide counseling
    and relieve the burden challenging the family volunteers must be the
    third prong of the support network.
        High operational tempo and frequent family separations test the
    mettle of military families on a daily basis. That military families
    carry a special burden is especially apparent after every announcement
    of unit extensions in a combat zone, earlier-than-scheduled
    deployments, or a surge in the number of troops into theater. When the
    deployment of the 172nd Stryker Brigade from Fort Wainwright, AK, was
    extended just before the brigade was to return home last summer,
    families experienced a myriad of emotions and crises. How did the Army
    respond to the needs of these families? It began with a 90-minute
    conference call from the brigade commander in Iraq talking with the
    family readiness group leaders, who in turn passed the information on
    to the family members in their groups. Communication and rumor control
    were crucial in this situation. The Army brought extra staff from other
    installations to help in the support and allay some of the affected
    families' stress. New family assistance centers opened at Fort
    Wainwright and Fort Richardson to help families deal with nonrefundable
    airline tickets, powers of attorney that were about to expire,
    relocation concerns, and mental health issues. The Army augmented local
    support staff with child psychologists, adolescent counselors, and
    specially-trained chaplains with advanced degrees in family counseling.
    Families appreciated the extra measure of support. These initiatives
    became a template on how to rally resources and support for units and
    installations when future unexpected events happen.
        But what happens when a surge affects National Guard or Reserve
    families who cannot rely on a military installation? Following the
    President's January announcement of the troop surge to Iraq, the
    Minnesota National Guard reached out aggressively to support affected
    families. A robust family readiness and training network had already
    been in place, supported by Minnesota Governor and Mrs. Tim Pawlenty.
    The Guard augmented this network with additional military family life
    consultants and a full-time mental-health coordinator who encouraged
    mental-health providers across the state to support deployed National
    Guard members' families. DOD also generated a Tiger Team to analyze
    needs and allocate resources to support families affected by the surge.
    With the announcement of more extensions, additional Tiger Teams were
    stood up to augment medical services, counseling resources, and legal
    services and to help with commercial obligations.
        Individual Augmentees (IAs) and their families are especially
    vulnerable to falling through the cracks. Military families who
    previously knew how to navigate their unit chain of command become
    confused about who will provide information and support when their
    servicemembers become IAs. Is it the command giving up the
    servicemember or is it the gaining command--or both? This confusion can
    lead to frustration when a problem arises and the resolution does not
    come quickly. NMFA commends the Navy for its recognition of the
    challenges faced by IA families when their servicemembers have been
    deployed as individuals or small groups in support of ground combat
    operations. The Navy is implementing a policy to address the IA
    ``support'' issue. The original command support system and unit
    Ombudsman remain responsible for supporting the IA family. The
    Expeditionary Combat Readiness Center, a component of Naval
    Expeditionary Combat Command, was created to provide the communication
    link between family members and the IA. Families receive a toll free
    number and access to a Web site providing information and a comment
    section for family questions related to the deployment. The Navy
    Reserve has hired a full-time Family Support Manager to oversee Reserve
    military families' support. Five additional Family Support Managers
    will be in the field providing support to the ``Prairie Navy.'' This
    new support structure has been hard-fought because of funding
    challenges. Yet, without these innovations in Navy family support,
    servicemembers who are serving in harm's way would have to work harder
    to resolve pay problems, housing issues, and family concerns.
        NMFA is pleased to note that access to information and support has
    improved overall since the start of the war on terror. For example, the
    National Guard continues to promote the state Joint Family Assistance
    Centers as a resource for all military families. The Guard Family
    Program Web site, www.guardfamily.org, provides lists of many local
    resources. Training for Guard and Reserve family volunteers has
    improved and, in the case of the Marine Forces Reserve, Key Volunteers
    attend training side by side with the Marine Family Readiness Officers.
    This training helps to create realistic expectations on both the part
    of the professional and the volunteer.
        Recently, top military family program leaders from across the
    Services gathered at a Family Readiness Summit, convened by Assistant
    Secretary of Defense for Reserve Affairs Thomas Hall, to answer tough
    questions on how to work better together. While focusing on the Reserve
    component, delegates agreed that communication across the Services and
    components is key to bringing families the best support possible.
    Effective use of technology and partnerships with community agencies
    were listed as best practices, along with Military OneSource and the
    use of volunteers. Challenges identified include the need for
    consistent funding for family programs and full-time support personnel
    to help avoid burnout for the full-time staff and volunteers. Some
    participants expressed concern that current funding is tied to current
    operations and worried those funds will not always be available to
    address the long-term needs of servicemembers and families.
    Participants also identified the need for clear, non-confusing
    nomenclature for programs that families could recognize regardless of
    Service or component. Everyone saw reintegration as a challenge and
    expressed the concern that the single servicemember not be forgotten in
    the process. Outreach to parents, significant others, and other family
    members is essential in helping the servicemember recover from the
    combat experience. The concerns raised at this summit mirror those
    raised to NMFA by families since the beginning of Operations Enduring
    Freedom and Iraqi Freedom. NMFA has reported these findings in our
    annual congressional testimony and in the Association's published
    reports in 2004 and 2006 on families and deployment: Serving the
    Homefront and The Cycles of Deployment Survey Report. These reports are
    available in the Publications section of the NMFA Web site:
    www.nmfa.org.
        NMFA regards Military OneSource (www.militaryonesource.com), DOD's
    version of an employee assistance program, as an solid resource for
    military families, regardless of Service affiliation or geographical
    location. While DOD agencies and the OneSource contractor have
    increased their outreach efforts this year, NMFA remains disappointed
    that families' usage of OneSource is low and that OneSource is not yet
    well-integrated into other Service, component, and installation support
    systems. This integration is important not just to meet the wide-
    ranging needs of today's military families, but also to make the best
    use of increasingly scarce resources at the installation level. More
    efforts must be made to enable family center personnel and unit family
    readiness volunteers to become the ``experts'' on OneSource so they can
    then encourage more families to take advantage of the service.
    OneSource must also do a better job of connecting families to support
    services already provided by DOD and the Services.

              NMFA urges these subcommittees to direct the Services to
            develop a training system and support structure to meet the
            needs of the senior officer and enlisted spouses who bear the
            heaviest burden for supporting other military family unit
            volunteers. It is essential that professional support personnel
            are tasked to serve as back-up to unit volunteers to ensure
            families in crisis receive appropriate assistance. The Services
            must recognize their responsibility to reach out to families to
            ensure families understand how to access available support
            services.

                          CUT BACKS IN BASE OPERATIONS

        Families and the installation professionals who support families
    tell NMFA that shortfalls in installation operations funding are making
    the challenges of military life today more difficult. Families are
    grateful for the funding increases Congress has provided since the
    start of the global war on terror for deployment-related programs, such
    as counseling, family assistance for Guard and Reserve families, and
    expanding access to child care services. However, the military families
    who contact NMFA, as well as many of our more than 100 installation
    volunteers, also tell us they are worried about consistent funding
    levels for these programs, as well as for core installation support
    programs: family center staffing, support for volunteer programs,
    maintenance on key facilities, and operating hours for dining halls,
    libraries, and other facilities.
        Shortages in base operations funding are nothing new. What seems to
    make the crisis worse now is that war needs have exacerbated the
    negative effects of a long history of cutbacks. Deployed servicemembers
    expect their installation quality-of-life services, facilities, and
    programs to be resourced at a level to meet the needs of their
    families. Cutbacks hit families hard. They are a blow to their morale,
    a sign that perhaps their Service or their nation does not understand
    or value their sacrifice. They also pile on another stressor to the
    long list of deployment-related challenges by making accessing services
    more difficult. Families are being told the cutbacks are necessary in
    order to ensure funds are available for the war, and in the case of
    Army communities, the ongoing Army transformation. Just when they need
    quality-of-life programs most, families should not be asked to do
    without. Their commanders should not have to make the choice between
    paying installation utility bills or providing family support services.
        NMFA asks Congress to direct DOD to maintain robust family
    readiness programs and to see that resources are in place to accomplish
    this goal. We ask these subcommittees to exercise their oversight
    authority to ensure critical base operations programs are maintained
    for the servicemembers and families who depend on them.

                     CARING FOR MILITARY CHILDREN AND YOUTH

        At a recent hearing, the Service Senior Enlisted Advisors put child
    care as one of their top two quality-of-life concerns. Frequent
    deployments and long work hours make the need for quality affordable
    and accessible child care critical. We thank Congress for making
    additional funding available for child care since the beginning of the
    global war on terror. We also applaud several of the innovative ways
    the military Services have attempted to meet the demand, including:

             the Navy's 24 hour centers in Virginia and Hawaii;
             the purchase of additional child care slots in private
            or other government agency facilities;
             partnerships with provider organizations to connect
            military families with providers; and
             use of additional funding provided by Congress to make
            improvements to temporary facilities to increase the number of
            child care slots on military installations.

        While these efforts have helped to reduce the demand for child
    care, more is needed. NMFA understands that the House and Senate have
    included in their versions of the fiscal year 2007 Supplemental
    Appropriations bill the $3.1 billion previously cut from the fiscal
    year 2007 continuing resolution. This funding is critical to ensuring
    that the additional child care spaces required by BRAC and rebasing can
    be in place when families begin to arrive at new duty stations. In
    addition to being disappointed that the Supplemental Appropriations
    bill has not yet become law, NMFA remains concerned that, in the
    reality of scarce resources and delayed funding, child care centers
    will take a back seat to operational funding priorities. Even with
    these new centers, the Services--and families--continue to tell NMFA
    that more child care spaces are needed to fill the ever-growing demand.
        Multiple deployments have also affected the number of child care
    providers, both center and home based. Child and Youth Service (CYS)
    programs have historically counted heavily on the ranks of military
    spouses to fill these positions. Service CYS programs report a growing
    shortage of spouses willing to provide child care as the stress of
    single parenting and the worry over the deployed servicemember takes
    their toll. The partnerships between the Services and the National
    Association of Child Care Resource and Referral Agencies (NACCRRA) are
    helping and have grown over the past 2 years; however, not all families
    qualify for the subsidies and not all programs are the same. As always,
    getting the word out to families that such programs exist is
    challenging. Military OneSource must do a better job of putting the
    NACCRRA programs at the top of their list when referring families to
    child care services within their neighborhood. Too often, a family will
    call OneSource and receive the closest child care option to their home
    address, NOT to the program that is currently working with the military
    and providing subsidies.
        Unexpected extensions also wreak havoc on the availability of care.
    NMFA applauds the Army's efforts to address this shortage with an
    innovative program: CYS Transition Mobile Teams (TMT). The Army created
    the TMTs as a response to the emergency shortage of child care
    providers due to the extension of the 172nd Stryker Brigade Combat Team
    from Fort Wainwright, AK. The Army organized teams of volunteers within
    the CYS department willing to ``deploy'' to Fort Wainwright for a
    limited time to fill those shortages. This program was so successful it
    has been incorporated as a permanent aspect of the Army's CYS program.
        Innovative strategies are also needed when addressing the
    unavailability of after hour (before 6 A.M. and after 6 P.M) and
    respite care. Families often find it difficult to obtain affordable,
    quality care, especially during hard-to-fill hours and on weekends.
    Both the Navy and the Air Force have piloted excellent programs that
    provide 24-hour care. The Navy has 24-hour centers in Norfolk and
    Hawaii, which provide a home-like atmosphere for children of sailors
    working late night or varying shifts. The Air Force provides Extended
    Duty Child Care and Missile Care (24 hour access to child care for
    servicemembers working in the missile field). These innovative programs
    must be expanded to provide care to more families at the same high
    standard as the Services' traditional child development programs.
        Older children and teens cannot be overlooked. School personnel
    need to be educated on issues affecting military students and be
    sensitive to their needs. To achieve this goal, schools need tools.
    Parents need tools too. Military parents constantly seek more resources
    to assist their children in coping with military life, especially the
    challenges and stress of frequent deployments. Parents tell NMFA
    repeatedly they want resources to ``help them help their children.''
    Support for parents in their efforts to help children of all ages is
    increasing but continues to be fragmented. New Federal, public-private
    initiatives, and increased awareness and support by DOD and civilian
    schools educating military children have been developed; however,
    military parents are either not aware that such programs exist or find
    the programs do not always meet their needs.
        In their report: ``The Psychological Needs of U.S. Military
    Servicemembers and Their Families: A Preliminary Report''(Feb. 2007),
    the American Psychological Association states: ``Having a primary
    caretaker deployed to a war zone for an indeterminate period is among
    the more stressful events a child can experience. Adults, in the midst
    of their own distress are often anxious and uncertain on how to respond
    to their children's emotional needs. The strain of separation can weigh
    heavily on both the deployed parent and the caretakers left behind.
    Further, reintegration of an absent parent back into the family often
    leads to complicated emotions for everyone involved.'' These emotional
    challenges are further exacerbated when the servicemember's time at
    home between deployments is shortened, leaving precious little time for
    reintegration before preparations for the next deployment begin.
        NMFA is working to identify the cumulative effects multiple
    deployments are having on the emotional growth and well-being of
    military children and the challenges posed to the relationship between
    deployed parent and child in this very stressful environment. The NMFA
    Operation Purple summer camp program, currently in its fourth year,
    provides a free camp experience to military children, with priority
    given to children of deployed servicemembers. Unique in its ability to
    reach out and serve military children of different age groups (8-18),
    Operation Purple provides a safe and fun environment in which military
    children feel immediately supported and understood. Its curriculum
    focuses on giving children the tools to cope with deployment. This
    year, NMFA will also host a camp specifically for children of the
    wounded. This first of its kind camp will focus on the special needs
    and challenges faced by military children whose lives have been forever
    altered. It is our hope to reinforce coping skills and begin to collect
    data which will add to the scant literature on this subject.

              NMFA urges Congress to ensure resources are available to meet
            the child care needs of military families. NMFA also strongly
            requests that Congress add funding for further research on the
            effects deployments have on children of all ages, birth through
            teen, and support programs that increase the resiliency of the
            military family, especially of the military spouse who plays a
            key role in how children cope with deployments and any
            unfavorable outcomes.

                         EDUCATION OF MILITARY CHILDREN

        As increased numbers of military families move into new communities
    due to Global Rebasing and BRAC, their housing needs are being met
    farther away from the installation. Thus, military children may be
    attending school in districts whose familiarity with the military
    lifestyle may be limited. Educating large numbers of military children
    will put an added burden on schools already hard-pressed to meet the
    needs of their current populations. Impact Aid has traditionally helped
    to ease this burden; however, the program remains underfunded. NMFA was
    disappointed to learn the DOD supplement to Impact Aid was funded at a
    compromise level of $35 million for fiscal year 2007. An additional $10
    million was provided to school districts with more than 20 percent
    military enrollment that experience significant shifts in military
    dependent attendance due to force structure changes, with another $5
    million for districts educating severely-disabled military children.
    While the total funding available to support civilian schools educating
    military children is greater than in recent years, we urge Congress to
    further increase funding for schools educating large numbers of
    military children. This supplement to Impact Aid is vital to school
    districts that have shouldered the burden of ensuring military children
    receive a quality education despite the stresses of military life.
        NMFA also encourages Congress to make the additional funding for
    school districts experiencing growth available to all school districts
    experiencing significant enrollment increases and not just to those
    districts meeting the current 20 percent enrollment threshold. We also
    urge you to authorize an increase in the level of this funding until
    BRAC and Global Rebasing moves are completed. The arrival of several
    hundred military students can be financially devastating to any school
    district, regardless of how many of those students the district already
    serves. Because military families cannot time their moves, they must
    find available housing wherever they can. Why restrict DOD funding to
    local school districts trying to meet the needs of military children
    simply because they did not have a large military child enrollment to
    begin with?

              NMFA asks Congress to increase the DOD supplement to Impact
            Aid to $50 million to help districts better meet the additional
            demands caused by large numbers of military children,
            deployment-related issues, and the effects of military programs
            and policies. We also ask Congress to allow all school
            districts experiencing a significant growth in their military
            student population due to BRAC, Global Rebasing, or
            installation housing changes to be eligible for the additional
            funding currently available only to districts with an
            enrollment of at least 20 percent military children.

                              FINANCIAL READINESS

        Financial readiness is a critical component of family readiness.
    NMFA applauds the passage of the Talent/Nelson Amendment (Sec. 670) to
    the National Defense Authorization Act (NDAA) for Fiscal Year 2007.
    This legislation was desperately needed to protect servicemembers and
    their families from unscrupulous business practices. We are concerned,
    however, that some lenders are attempting to create loopholes to allow
    them to circumvent the intent of this important legislation. NMFA is
    very disappointed with the draft regulation recently released by DOD to
    implement this legislation. The regulation appears to be more focused
    on protecting the ability of creditors to function than with ensuring
    servicemembers and their families are protected from unscrupulous and
    predatory lenders. As currently drafted, the regulation is so narrow in
    scope that even payday lenders may be able to continue business as
    usual with only a few minor changes to their practices. Some of the
    most damaging products--privilege pay, overdraft protection, and credit
    cards with exorbitant fees--are completely excluded from the
    regulation. While DOD has not carved out banks and credit unions by
    name, the Department has certainly chosen to carve them out completely
    by product. While NMFA fully recognizes the Military Lending Act could
    impede the ability of some servicemembers and their families to obtain
    short-term loans, we believe this risk is justified given the negative
    impact of the use of predatory loans. We also believe better education
    about other available resources and improved financial education for
    both the servicemember and spouse will also reduce the risk.
        The chief complaint among lenders centers on the breadth of the
    protections. Lenders contend the legislation as written will result in
    the denial of credit to military members and their families. NMFA
    contends that legitimate lenders have no need to fear an interest rate
    cap of 36 percent. We encourage DOD to continue to make military
    families aware of the need to improve their money management skills and
    avoid high cost credit cards and other lenders. The Department must
    continue to monitor high cost, low value financial products targeted at
    military families.

              NMFA asserts that the protections provided under the Talent/
            Nelson amendment must be implemented in their entirety as
            written. We urge Congress to oppose strongly any changes to the
            statutory provisions enacted in the NDAA for Fiscal Year 2007
            and to monitor DOD's implementation of the legislative
            provision to ensure full protections are made available to
            military families.

                        SPOUSE EDUCATION AND EMPLOYMENT

        Today's military is comprised of predominantly young adults under
    the age of 35. Sixty-six percent of military spouses are in the labor
    force, including 87 percent of junior enlisted spouses (E-1 to E-5).
    For many, working to pay bills and cover basic expenses is the primary
    reason for working. Studies show the gap between the financial well-
    being of military families and their civilian peers is largely due to
    the frequent moves required of the military family and the resulting
    disruptions to the career progression of the military spouse. In a 2005
    report by the RAND Corporation: Working Around the Military: Challenges
    to Military Spouse Employment and Education, researchers found that
    military spouses, when compared to their civilian counterparts, were
    more likely to live in metropolitan areas and are more likely to have
    graduated from high school and have some college. Yet the RAND study
    found that all things being equal, military spouses' civilian
    counterparts tended to have better employment outcomes and higher
    wages. Surveys show that a military spouse's income is a major
    contributor to the family's financial well-being and that the military
    spouse unemployment rate is much higher (10 percent) than the National
    rate. The loss of the spouse's income at exactly the time when the
    family is facing the cost of a government ordered move is further
    exacerbated when the spouse is unable to collect unemployment
    compensation. Lacking the financial cushion provided by the receipt of
    unemployment compensation, the military spouse must often settle for
    ``any job that pays the bills'' rather than being able to search for a
    job that is commensurate with his or her skills or career aspirations.
    This in turn hurts morale and affects recruitment and retention of the
    servicemember
        With a concern that spouses desiring better careers will encourage
    servicemembers to leave the military, DOD is acknowledging the
    importance of efforts to support spouse employment. Recent DOD
    initiatives include the collaboration between DOD and Department of
    Labor (DOL), which focuses on:

             establishing Milspouse.org, a resource library for
            military spouse employment, education and relocation
            information,
             establishing One Stop Career Centers near major
            military installations (Norfolk, Virginia; San Diego,
            California; Fort Campbell, Kentucky),
             expanding opportunities for Guard and Reserve members
            and military spouses to access training and education grants,
             exploring options with states to offer unemployment
            compensation to military spouses when unemployment is the
            result of a permanent change of station (PCS) move, and
             improving reciprocity for State certifications and
            licensing requirements.

        Unfortunately, funds for this promising collaboration have run out
    and are not due to be reinstated. NMFA believes this lack of funding is
    a significant blow to the promise of these early initiatives. We also
    believe the DOL is best positioned to provide the coordination
    necessary with states and other agencies to promote opportunities for
    military spouse employment.
        DOD has also sponsored a partnership with Monster.com to create the
    Military Spouse Career Center (www.military.com/spouses) and recently
    announced the availability of free career coaching through the Spouse
    Employment Assessment, Coaching and Assistance Program (SEACA).
    However, with more than 700,000 Active Duty spouses, the task of
    enhancing military spouse employment is too big for DOD to handle
    alone. Improvements in employment for military spouses and assistance
    in supporting their career progression will require increased
    partnerships and initiatives by a variety of government agencies and
    private employers. NMFA applauds current partnerships through the Army
    Spouse Employment Partnership (ASEP) where currently 26 corporate and
    government partners have pledged to provide solid employment
    opportunities to military spouses. Although marketed as an Army
    initiative, all military spouses may take advantage of this program.
    Unfortunately, without the ability to track the actual hiring numbers,
    it is difficult to determine the success of these partnerships.
        Despite greater awareness of the importance of supporting military
    spouse career aspirations, some roadblocks remain. In addition to their
    inability to qualify for unemployment compensation in many states,
    military spouses may not be eligible for the many labor and workforce
    development opportunities offered in the states in which their
    servicemember is assigned. As the military streamlines operations and
    contracts out many services, military spouses may find the contract
    positions have significant disadvantages over positions as non-
    appropriated fund (NAF) or civil service employees. While one could
    argue that the ability to be a contractor provides a spouse with some
    flexibility, this ``opportunity'' also brings significant monetary
    implications for the military spouse. What many spouses do not realize
    until it is too late is that, as a contractor, a spouse enjoys none of
    the regular employee benefits available through NAF or civil service
    positions. In addition, they must file quarterly tax statements to pay
    self-employment tax. NMFA asserts it is time to take a closer look at
    the efficiencies of contracting and the resulting impact on military
    spouses who frequently fill these contractor positions.
        Many military spouses trying to improve their employment prospects
    encounter another set of barriers as they seek further education. As
    one spouse stated in a recent NMFA on-line spouse education and
    employment survey: ``My resume looks like I cannot hold a job, never
    mind that I have worked since I was 15! Low salary, no time to accrue
    seniority, no time for education to improve skills all lead to low self
    esteem. Never mind that when my husband retired he had access to the
    MGIB and subsequently has finished two masters' degrees while my
    options are still limited.''
        In the 2006 DMDC Survey for Military Families, 87 percent of
    spouses report education/training is a personal goal and 54 percent
    report training would have helped during their last relocation. The
    high cost of education, the lack of uniformly-authorized in-state
    tuition, and the high cost of transferring certifications and licenses
    from State to State are challenges that must be addressed.
        NMFA has also been aware of these challenges. In 2006, the
    Association's Joanne Holbrook Patton Military Spouse Scholarship
    Program garnered slightly over 8000 applicants! An analysis of
    responses reaffirmed that military spouses have a strong commitment to
    educational advancement even as they struggle to juggle school, work
    and family, especially with today's current deployments. They
    understand that service life brings unique educational challenges,
    which often influences their career choices as well. NMFA is developing
    educational tools to enhance a spouse's ability to navigate through the
    frustrating years it can take to complete a degree. The NMFA Military
    Spouse Education Resource Guide is now in its second printing. In
    January 2007, NMFA launched its new on-line Military Spouse Education
    web section, a comprehensive resource about higher education tailored
    for the military spouse. (http://www.nmfa.org/spouseeducation). But
    even with all these initiatives and scholarship opportunities the need
    continues to be great. As one spouse put it: ``I have searched for
    education or tuition reimbursement for military spouses and I have
    found no help. I don't qualify for grants or financial aid because my
    spouse makes too much money . . . I see many scholarships for military
    children or children of the fallen but very little for spouses. How can
    a spouse further her education when there is very little help for us?''
        NMFA is pleased to report that some States are examining their in-
    State tuition rules and licensing requirements to ease spouses' ability
    to obtain an education or to transfer their occupation as they move.
    NMFA is appreciative of the efforts by DOD to work with States to
    promote the award of unemployment compensation to military spouses,
    eligibility for in-State tuition, and reciprocity for professional
    licenses. DOD has also recognized that it is imperative that programs
    be developed to move the 22,500 military spouses without a high school
    degree towards General Education Development (GED) certificates and
    address the 52,000 military spouses with a high school diploma who need
    to move toward an Associate or technical degree.

              NMFA asks that the partnership between DOD and DOL be
            realigned to give DOL the authority to serve military spouses
            through legislative changes designating military spouses as an
            eligible group for funds for training and education.
            Furthermore, NMFA asks Congress to promote Federal and state
            coordination to provide unemployment compensation for military
            spouses as a result of Permanent Change of Station (PCS)
            orders. NMFA asks Congress to promote Federal and State
            coordination to make college credits and fees more easily
            transferable and adopt State education policies that permit a
            military spouse to qualify for in-State tuition regardless of
            servicemember's duty location. NMFA also supports programs or
            legislative changes that would give local Workforce Investment
            Boards the opportunity to provide education and training
            assistance to military spouses. Private sector employers who
            protect employment and/or education flexibility of spouses and
            other family members impacted by deployment should be applauded
            as role models.

                            MENTAL HEALTH CHALLENGES

        As the war continues, families' need for a full spectrum of mental
    health services--from preventative care to stress reduction techniques,
    to individual or family counseling, to medical mental health services--
    continues to grow. In a recent meeting in Alaska with Chairman of the
    Joint Chiefs of Staff General Peter Pace, military spouses asked him
    for more counseling resources to help them recognize potential
    difficulties their servicemembers were facing as a result of combat
    experience. They also asked these services be made available to
    servicemembers and commanders grappling with these problems. The recent
    press reports on Walter Reed Army Medical Center also emphasized the
    need for additional counselors and mental health services for both
    wounded servicemembers and their families.
        NMFA was dismayed to learn recently that Medicare reimbursement
    rates for mental health services were lowered, thus also lowering
    TRICARE reimbursement rates. These cuts for mental health service can
    be as high as 9 percent. Currently, California, North Carolina, and
    Kentucky have implemented the rate change. All three of these states
    contain military installations experiencing high operational tempos.
    NMFA is hearing psychiatrists will continue to see current patients,
    but will be reluctant to accept additional TRICARE patients. Given the
    shortage of mental health specialists, rate cuts will only further
    erode access to quality mental health services for military families
    during a time of war when they need them most.
        As servicemembers and families experience numerous lengthy and
    dangerous deployments, NMFA believes the need for confidential,
    preventative mental health services will continue to rise. It will also
    remain high for some time even after military operations scale down in
    Iraq and Afghanistan. NMFA has seen progress in the provision of mental
    health services, access to those services, and military servicemember
    and family well-being. However, the progress is ongoing and barriers to
    quality mental health care remain.

                                 PROGRESS MADE

        NMFA has been impressed with the increased range of mental health
    support offered in theater for servicemembers, especially with the use
    of combat stress teams. Combat stress teams move out when needed to the
    unit level to provide advice, support, and counseling to soldiers who
    are having some adjustment problems or issues related to combat. They
    assess the troops, work at preventive mental health, find out what
    stresses they are struggling with, and assist the commander in helping
    the servicemembers deal with that stress.
        NMFA has often expressed concern about the deployment of
    servicemembers who had been diagnosed with mental health conditions. We
    have been especially concerned about the use of psychiatric medications
    in theater and the ability of mental health providers to monitor
    servicemembers' use of these medications and address possible side
    effect issues in a combat environment. We congratulate DOD for issuing
    policy guidance on the deployment of servicemembers with mental health
    diagnoses and the monitoring of their conditions (http://
    www.ha.osd.mil/policies/2006/061107--deployment-limiting--psych--
    conditions--meds.pdf). We hope this guidance will provide consistency
    among the Services in how they determine servicemembers' fitness for
    deployment and the support available to them in theater.
        Some communities have also adopted the combat stress team model to
    support the families of the deployed during periods when they know the
    unit is engaged in combat or has experienced casualties. In NMFA's
    Cycles of Deployment survey report (http://www.nmfa.org/site/DocServer/
    NMFACyclesofDeployment9.pdf?docID=5401), respondents stated
    professional mental health resources need to be directed to support the
    volunteer leadership of the Family Readiness/Support Groups (FRGs). The
    Rear Detachment of the 1st Brigade of the 1st Armored Division, based
    in the Freidberg/Giessen area of Germany, made providing this support a
    community priority. It established a Combat Operational Stress Team
    made up of social workers, Alcohol and Substance Abuse Counselors, and
    other mental health providers and assigned them as resources to the
    various battalions' FRGs. By bringing these available community-based
    mental health resources to the battalion volunteers, the team could
    identify problem areas more quickly and target their support efforts.
    For example, when it was apparent that several of the survivors of
    active duty deaths were choosing to remain in Germany rather than
    immediately go back to the United States, the rear detachment formed a
    Bereavement Support Group, assisted by members of the stress team.
        The 1st Armored Division communities were also among the handful of
    Army installations to create care teams to assist families when the
    unit has a casualty. The concept behind the care team is that rear-
    detachment commanders and Family Readiness Group leaders have
    volunteers ready to provide immediate support as the notification teams
    leave, rather than scrambling around. Care teams--each with two or
    three members--train to do everything from looking after children, to
    anticipating potential crises, to fending off ``concerned'' neighbors
    at a vulnerable time. Each care team goes through careful screening and
    training, then undergoes debriefings after helping families to make
    sure they do not suffer themselves from what is always an emotional
    test.
        As deployments have continued, the military Services have refined
    programs dealing with the return and reunion process. Families worry
    about how the reunion will go even as they are worrying about the
    servicemember's safety in theater. Recent concerns about military
    divorce rates have prompted even more programs aimed at couples'
    reunion and reintegration. The Services recognize the importance of
    educating servicemembers and their families about how to achieve a
    successful homecoming and reunion and have taken steps to improve the
    return and reunion process. Information gathered in the now-mandatory
    post-deployment health assessments may also help identify
    servicemembers who may need more specialized assistance in making the
    transition home. Successful return and reunion programs will require
    attention over the long-term.
        Multiple deployments are no longer the exception but rather the
    norm. Families experiencing a second or third deployment never start
    from the same place. Along with skills acquired during the first
    deployment, there are unresolved anxieties and expectations from the
    last. New families are entering the cycle, whether they are new
    recruits, servicemembers deploying with new units, or families whose
    life situations have changed since the last deployment. An example of
    the progress made in supporting the more complicated readjustments now
    becoming commonplace is the Army's new Battlemind program
    (www.battlemind.org). The Battlemind training videos, currently
    available for post-deployment training provide servicemembers with
    common scenarios they might face on their return home, as well as show
    them how skills developed on the battlefield to keep themselves alive
    may make their readjustment more difficult. NMFA is pleased future
    Battlemind programs will be aimed at helping family members with their
    readjustment.
        According to the NMFA Cycles of Deployment survey report, families
    are also concerned about the relationships among other family members
    during this critical reunion phase. How children, especially the very
    young or the teenagers, will re-connect with a parent was a common
    theme. NMFA would like to see the concept behind the couples' programs
    extended to focus on the reintegration of the entire family. As pointed
    out in the recently-released American Psychological Association report,
    (http://www.apa.org/releases/MilitaryDeploymentTaskForceReport.pdf),
    scholarly research is needed on the short- and long-term effects of
    deployment on military families, especially the children. We urge
    Congress to direct DOD to enter into research agreements with qualified
    research organizations to expand our Nation's knowledge base on the
    mental health needs of the entire military family: servicemembers,
    spouses, and children. Special attention must be paid to issues
    affecting wounded servicemembers and their families, as well as
    surviving spouses, children, and other family members. Solid research
    on the needs of military families is needed to ensure the mix of
    programs and initiatives available to meet those needs is actually the
    correct one.
        Because military families look to schools for support and because
    schools have a vested interest in ensuring children are able to focus
    on learning, NMFA recommends more resources be targeted to provide
    counseling and make available mental health services in the schools. To
    determine what is needed, an assessment should be made of existing
    mental health services provided by DOD and civilian schools serving
    large populations of military children. This assessment should also
    attempt to validate anecdotal reports that disruptions and stress among
    military children related to deployments are resulting in increased
    medication use, behavioral problems, or declines in educational
    performance.
        Information gathered in the now-mandatory post-deployment health
    assessments may also help identify servicemembers who may need more
    specialized assistance in making the transition home. Successful return
    and reunion programs will require attention over the long term, as well
    as a strong partnership at all levels between the various mental health
    arms of the DOD and VA.
        The DOD contract for Military OneSource enables servicemembers and
    families to receive up to six free face-to-face mental health visits
    with a professional outside the chain of command. NMFA is pleased DOD
    has committed to funding the counseling provided under the OneSource
    contract. This counseling is not medical mental health counseling, but
    rather assistance for family members in dealing with the stresses of
    deployment or reunion. It can be an important preventative to forestall
    more serious problems down the road.
        Since May 2004, MHN, the behavioral health division of HealthNet,
    has provided under contract with DOD short-term, solution focused, non-
    medical family and daily living counseling to active duty, National
    Guard and Reserve members, and their families (continental United
    States (CONUS) and outside CONUS (OCONUS). The Military and Family Life
    Consultant (MFLC) program is preventative in nature and designed to
    reach out proactively to service personnel and their families with
    assistance as they cope with the stressors of deployment and reunion.
    The program complements existing installation resources, including
    medical, social services, alcohol and substance abuse programs,
    schools, and chaplains. Support is provided to all Service branches,
    although the greatest utilization has been by the Army, followed by the
    Marines. The program also makes available behavioral and financial
    consultants at a number of Navy installations in Hurricane Katrina-
    affected areas and supports airmen and their families at a number of
    OCONUS locations. Currently, there are approximately 150 licensed
    consultants providing support in Europe, the Pacific Rim and stateside.
        While the consultants are equipped to address various needs, a
    significant amount of support is focused on coping with stress and
    marriage and family issues. Counselors generally work out of the
    military centers and are available to assist units or family readiness
    groups. They try to be visible when servicemembers are returning to
    their installations or during drill weekends for recently-returned
    Guard and Reserve members. While many servicemembers and their families
    are able to benefit solely from the support offered through the
    consultants, there are, on occasion, instances when more extensive
    support is required. In such cases, the consultants (all licensed
    social workers or psychologists) guide the member to the clinical and
    professional resources available at military installations, as well as
    via TRICARE.
        NMFA has found that families and family support professionals have
    generally welcomed these additional counseling resources to their
    communities. We believe the Marriage and Family Life Consultants are
    most effective when fully integrated into ongoing support activities on
    an installation. Thus, their success is dependent on the buy-in from
    the family center personnel. The consultants working in overseas
    communities experience a greater challenge in integrating their
    services with other installation programs. Host-nation rules generally
    limit the time these counselors may work in one location to only a few
    weeks. Thus, their effectiveness is dependent on both the willingness
    of local family center staff to use them and on the consultants'
    ability to do a smooth hand-off with their replacements. While
    important in enhancing the preventative mental health capabilities in a
    community, these consultants are not a replacement for the mental
    health providers who have been deployed. Families continue to raise
    concerns that more providers who can do long-term counseling and
    treatment are needed.

              We ask Congress to encourage DOD to expand research into the
            emotional, educational, and deployment-related challenges
            affecting military families. NMFA also requests that Congress
            investigate the effects of recent TRICARE mental health
            reimbursement rate cuts on military families' access to care.

                                BARRIERS TO CARE

        The military offers a variety of mental health services, both
    preventative and treatment, across many helping agencies and programs.
    On a typical installation, families can access stress management
    classes through the family center staff, the military and family life
    consultants, chapel programs, hospital, family readiness group
    meetings, or through orientation programs such as Army Family Team
    Building. They can find marriage and family counseling through the
    family centers, chaplains, or social workers at the military hospitals.
    They can call Military OneSource and request a visit with a counselor
    outside the military system paid through that contract. If a medical
    condition, such as depression or an anxiety disorder, is suspected,
    families can receive services, where available, through military
    treatment facilities or TRICARE civilian providers.
        As outlined above, DOD and the individual Services have added many
    deployment-related support, counseling, and stress management programs
    to supplement existing mental health programs. These programs, however,
    are primarily stand-alone. Coordination across the spectrum is rare.
    Families tell NMFA that the proliferation of programs, while beneficial
    to those who seek them out or are able to take advantage of them, has
    increased their confusion about where to go or who to see to get the
    help they need. A first step in this needed coordination would be to
    integrate training among OneSource counselors, installation-based
    family support professionals, and Family Assistance Center employees of
    the Guard and Reserve to facilitate information, collaboration, and
    counseling efforts to best support military families. A second step
    would be to increase linkages at the local level between military
    installation mental health providers, civilian providers, and school
    personnel to enhance training and access to care.
        Timely access to the proper provider remains one of the greatest
    barriers to quality mental health services for servicemembers and their
    families. NMFA and the families it serves have noted with relief that
    more providers are deployed to theaters of combat operations to support
    servicemembers. The work of these mental health professionals with
    units and individuals close to the combat action they experience have
    proved very helpful and will reduce the stress that impedes
    servicemembers' performance of their mission and their successful
    reintegration with their families.
        While families are pleased more mental health providers are
    available in theater to assist their servicemembers, they are less
    happy with the resulting limited access to providers at home. Families
    report increased difficulty in obtaining appointments with social
    workers, psychologists, and psychiatrists at their military hospitals
    and clinics. The military fuels the shortage by deploying some of its
    child and adolescent psychology providers to the combat zones.
    Providers remaining at home stations report they are frequently
    overwhelmed treating active duty members who either have returned from
    deployment or are preparing to deploy to fit family members into their
    schedules. A recent survey on counseling conducted by the European
    Command documents the access problems NMFA has heard from military
    families both CONUS and OCONUS. Many respondents stated that
    appointments are difficult to obtain, that chaplains and family center
    staff are also overworked, and that the specialized care needed for
    children and adolescents is persistently difficult to obtain.
        National shortages in this field, especially in child and
    adolescent psychology, are exacerbated in many cases by low TRICARE
    reimbursement rates, TRICARE rules, or military-unique geographical
    challenges: large populations in rural or traditionally underserved
    areas. Over the past year, several groups of civilian mental health
    providers who are willing to donate their services to servicemembers
    and family members have contacted NMFA. One of these groups is SOFAR,
    the Strategic Outreach to Families of All reservists
    (www.sofarusa.org). SOFAR providers, mostly based in New England,
    provide stress management sessions to Family Readiness Groups and
    individual counseling to family members, to spouses and children, as
    well as non-military-ID card holders, such as parents and significant
    others. The nonprofit Give an Hour (www.giveanhour.org) asks mental
    health providers to donate 1 hour per week for a year to assist
    servicemembers or family members who need these services. NMFA applauds
    the spirit to help military families that drives these ventures and
    believes that well-trained providers in these organizations can
    supplement local support services available to family readiness groups
    and unit rear detachment/party personnel, especially for isolated Guard
    and Reserve units. However, we are concerned about the difficulties in
    coordinating care provided outside the TRICARE system in case more
    serious issues emerge and the patient must come back into the system.
    While willing to see military beneficiaries in a voluntary status,
    these providers often tell us they will not participate in TRICARE
    because of what they believe are time-consuming requirements and low
    reimbursement rates. More must be done to persuade these providers to
    participate in TRICARE and become a resource for the entire system.
        NMFA also believes a legislative change is needed to expand the
    TRICARE provider base. Currently, by law, clinical social workers and
    marriage and family therapists can independently treat TRICARE
    beneficiaries for TRICARE-covered mental health conditions. Licensed
    mental health counselors are professionals with master's or doctoral
    degrees in counseling or a related discipline, training similar to that
    of clinical social workers and marriage and family therapists. They
    were excluded from the legislative authority to treat TRICARE patients
    as independent providers and may only see TRICARE patients under the
    supervision of a physician. This requirement increases the difficulty
    for TRICARE patients in accessing care, limits their choice of
    provider, and may, by providing an additional step in the process of
    obtaining care, discourage beneficiaries from seeking care. A provision
    to grant licensed mental health counselors independent practice
    authority under TRICARE was included in the House version of the NDAA
    for Fiscal Years 2006 and 2007, only to fall out of the final
    conference versions. NMFA asks Congress to try again this year to
    achieve this necessary change to expand the military medical facility
    and TRICARE provider base by authorizing independent practice by
    licensed mental health counselors.
        NMFA continues to hear that some servicemembers and families feel
    the stigma against seeking mental health care and choose to try to
    ``ride out'' the rough spots on their own. We believe, however, based
    on our survey data and conversations with family members that the
    increased stress caused by multiple deployments is causing more
    families to seek help. While this increased stress in the military
    family is bad news, the good news for family support professionals who
    believe military families are reluctant to seek help for mental health
    issues is that many now recognize counseling is an option for them.
    Families perceive counseling and mental health support as especially
    helpful if it is confidential and with a professional familiar with the
    military. One spouse who met recently with General Pace in Alaska noted
    what she felt she and her servicemember spouse needed most: ``When my
    husband talks to me, I don't even know how to respond to some of the
    things he says. If they can talk among themselves, without fear of
    repercussion, maybe that would help.''
        To measure the stigma associated with seeking behavioral health
    care, the Army's Third Mental Health Advisory Team (MHAT) asked
    soldiers five different questions. The team found that the number of
    soldiers who agreed there was stigma associated with seeking this care
    decreased significantly from MHAT I to MHAT III. While these findings
    are encouraging, we include the persistent stigma as a barrier that
    must still be addressed. Commanders must be engaged in this process to
    model behaviors that promote the seeking of counseling and support.
        Many mental health experts state that some post-deployment problems
    may not surface for several months or years after the servicemember's
    return. NMFA is especially concerned that not as many services are
    available to the families of returning Guard and Reserve members and
    servicemembers who leave the military following the end of their
    enlistment. They may be eligible for transitional health care benefits
    and TRICARE Reserve Select. The servicemember may seek care through the
    Veterans' Administration, but what happens when the military health
    benefits run out and deployment-related stresses still affect the
    family? Reports of Vietnam and even World War II veterans showing up at
    VA facilities in need of counseling after viewing news reports of the
    war in Iraq remind all of us that PTSD and other mental health effects
    of the war can linger for years, thus requiring the availability of
    care for many years in the future. Congress must address not just the
    current needs of the force and families, but also their long-term need
    for continued access to services.
        We ask Congress to also address the distance issues families face
    in linking with military mental health resources and obtaining
    appropriate care. Isolated Guard and Reserve families do not have the
    benefit of the safety net of services provided by military treatment
    facilities and installation family support programs, however strained.
    They look to resources in their communities. Often, however, these
    local providers may not have an understanding of military life or an
    appreciation of the servicemember's choice to serve. Especially when
    dealing with the mental health consequences of deployment, families
    want to be able to access care with a provider who understands or is
    sympathetic to the issues they face. More education to civilian health
    care providers, as well as religious and education professionals, will
    help to broaden the support base for military families and improve the
    quality of the mental health services they receive. Alternative methods
    for providing mental health services to rural areas should be explored,
    such as telemental health.
        In the sixth year of the war on terror, care for the caregivers
    must become a priority. NMFA hears from the senior officer and enlisted
    spouses who are so often called upon to be the strength for others. We
    hear from the health care providers, educators, rear detachment staff,
    chaplains, and counselors who are working long hours to assist
    servicemembers and their families, known as compassion fatigue. Unless
    these caregivers are also afforded a respite and care, they will be of
    little use to those who need their services most.
        NMFA also sees a need for specific training in bereavement and
    other counseling for family readiness group leaders, ombudsmen, and key
    volunteers. Many widows say they suddenly felt shut out by their old
    unit or community after the death of their servicemember. Often the
    perceived rejection is caused by a lack of knowledge on the part of
    other families about how to meet the needs of the survivors in their
    midst. Because they find contact with survivors difficult, they shy
    away from it. In some communities, support groups outside the unit
    family support chain have been established to sustain the support of
    the surviving families in the days and months after the death of the
    servicemember. As part of the standardization and improvement of the
    casualty assistance process, more effort needs to be placed at the
    command level on supporting the long-term emotional needs of survivors
    and of communities affected by loss. The implementation of the Care
    Team process on a broader scale not only supports survivors, but also
    those community volunteers who bear the burden of support.
        Because the VA has as part of its charge the ``care for the widow
    and the orphan,'' NMFA was concerned about recent reports that many Vet
    Centers did not have the qualified counseling services they needed to
    provide promised counseling to survivors, especially to children. DOD
    and the VA must work together to ensure surviving spouses and their
    children can receive the mental health services they need. New
    legislative language governing the TRICARE behavioral health benefit
    may also be needed to allow TRICARE coverage of bereavement or grief
    counseling. While some widows and surviving children suffer from
    depression or some other medical condition for a time after their loss,
    many others simply need counseling to help in managing their grief and
    helping them to focus on the future. Many have been frustrated when
    they have asked their TRICARE contractor or provider for ``grief
    counseling'' only to be told TRICARE does not cover ``grief
    counseling.'' Available counselors at military hospitals can sometimes
    provide this service and certain providers have found a way within the
    reimbursement rules to provide needed care, but many families who
    cannot access military hospitals are often left without care because
    they do not know what to ask for or their provider does not know how to
    help them obtain covered services. Targeted grief counseling when the
    survivor first identifies the need for help could prevent more serious
    issues from developing later.
        Many of the issues facing survivors also face servicemembers who
    were wounded or injured and their families. Because many of these
    servicemembers are medically retired and will continue to access
    military health care benefits, in addition to VA assistance,
    appropriate mental health services must be available in both systems to
    them and their families. Counselors working with these families must
    understand the effects of trauma and help them deal with the ongoing
    challenges involved in the care of the servicemember, as well as the
    upheaval that injury has caused to the family as a whole. Mental health
    professionals must have a greater understanding of the effects of mild
    Traumatic Brain Injury in order to help accurately diagnose and treat
    the servicemember's condition. They must be able to deal with
    polytrauma--PTSD in combination with multiple physical injuries.

              DOD must balance the demand for mental health personnel in
            theater and at home to help servicemembers and families deal
            with unique emotional challenges and stresses related to the
            nature and duration of continued deployments. Rear detachment
            personnel and family readiness volunteers need mental health
            professionals dedicated to assist them in supporting families
            of the fallen and injured and others who may become overwhelmed
            by the stresses of deployment. We ask Congress to encourage DOD
            to step up the recruitment of uniformed mental health providers
            and the hiring of civilian providers to assist servicemembers
            in combat theaters AND at home stations to care for the
            families of the deployed and servicemembers who have either
            returned from deployment or are preparing to deploy. TRICARE
            contractors should be tasked with stepping up their efforts to
            attract mental health providers into the TRICARE networks and
            to identify and ease the barriers providers cite when asked to
            participate in TRICARE.

                             ACCESS TO HEALTH CARE

        NMFA thanks members of these subcommittees for their continued
    support for a robust military health care system. We ask you to
    remember the multi-faceted mission of this system. It must meet the
    needs of servicemembers and the Department of Defense (DOD) in times of
    armed conflict. The Nation must also acknowledge that military members,
    retirees, their families, and survivors are indeed a unique population
    with unique duties, who earn an entitlement to a unique health care
    program. We ask you to recognize that the military health care system,
    which showed signs of stress even before the start of the global war on
    terror, is now significantly taxed.
        NMFA and the families it serves have been gratified to see the
    medical improvements on the battlefield and in military hospitals,
    which have raised the survival rate of casualties. NMFA asserts,
    however, as we have done for several years, that access to care remains
    the number one problem facing TRICARE beneficiaries, especially those
    who depend on military treatment facilities (MTFs). We were dismayed,
    but unfortunately not surprised, by the recent press reports
    highlighting the problems wounded servicemembers face in accessing care
    at Walter Reed Army Medical Center. As we have stated in previous
    testimonies before the Personnel Subcommittee, military families often
    cite problems accessing care at MTFs. What was particularly disturbing
    to us was that we know families are willing to wait longer than they
    should for care so that servicemembers can receive first priority.
    Families have every right to be horrified, therefore, when they find
    those who bear the scars of battle are having the same or worse access
    issues.
        Recent statements by the Service Surgeons General before the new
    Task Force on the Future of Military Health Care highlighted the
    funding problems facing the direct care system. These shortfalls are
    experienced first-hand by military families enrolled in TRICARE Prime
    when they find their MTF cannot meet prescribed access standards. No
    one is more cognizant of the need for superior health care to be
    provided to servicemembers in harm's way than their families. In
    addition, no one is more willing to change providers or venues of care
    to accommodate the need for military health care providers to deploy
    than the families of those deployed. However, a contract was made with
    those who enrolled in Prime. Beneficiaries must seek care in the manner
    prescribed in the Prime agreement, but in return they are given what
    are supposed to be guaranteed access standards. When an MTF cannot meet
    those standards, appointments within the civilian TRICARE network must
    be offered. In many cases, this is not happening and families are told
    to call back next week or next month. In other cases, MTFs must send
    enrolled beneficiaries to providers in the civilian network, thus
    increasing costs to the system as a whole.
        Because operational requirements have reduced the number of
    uniformed health care personnel available to serve in the MTF system, a
    more coordinated approach is needed to optimize care and enable MTFs to
    meet access standards. We continue to hear that difficulties in the
    Service contracting process prevent MTFs from filling open contract
    provider slots and thus optimizing care within their facilities.
    Efficient contracting for health care staffing could increase the
    amount of care provided in the direct care system, thereby reducing the
    overall cost of care to the military health care system. NMFA suggests
    Congress direct DOD to reassess the resource sharing program used prior
    to the implementation of the T-Nex contracts and take the steps
    necessary to ensure MTFs meet access standards with high quality health
    care providers.
        MTFs must have the resources and the encouragement to ensure their
    facilities are optimized to provide high quality, coordinated care for
    the most beneficiaries possible. They must be held accountable for
    meeting stated access standards. If funding or personnel resource
    issues are the reason access standards are not being met, then
    assistance must be provided to ensure MTFs are able to meet access
    standards, support the military mission, and continue to provide
    quality health care.

              NMFA asks all Members of Congress to hold DOD accountable for
            providing access to quality care to all TRICARE beneficiaries
            and to ensure the system is adequately resourced to provide
            that access.

                        HELP FOR FAMILIES FAR FROM HOME

        NMFA is concerned with the inequity of health care options being
    offered to pregnant spouses of servicemembers who are stationed at
    remote embassies in Africa, Eastern Europe, Asia, and other overseas
    areas. Appropriate medical care for the delivery does not exist at
    their duty station. As their delivery date approaches, pregnant women
    at remote sites in Africa and Eastern Europe are often sent to
    Landstuhl Military Medical Center in Germany to await the birth of
    their child. They may arrive as early as 6 weeks before their due date.
    They are put up in the ``Stork's Nest''--a Visiting Officers' Quarters
    in Landstuhl with other waiting mothers-to-be. If they have other
    children, they must find care for them at their home station or bring
    them with them at their own expense to Landstuhl. They endure a long
    bus ride to the hospital for appointments and another long bus ride
    back.
        What's wrong with this picture? The wife of the ambassador, consul
    or staffer working for the State Department can choose to go back to
    the States at government expense and stay with family until the birth
    of their child. So can military spouses who are stationed in Central
    and South America. In some cases, spouses in other locations will
    receive permission and funding to travel back to the states to have
    their babies; however, families report no consistency in how the policy
    is followed and who might be ``lucky'' enough to receive permission and
    funding to go to the states. Until recently, NMFA had been told this
    issue could be settled by policy within DOD Health Affairs. Now, we are
    hearing legislation is needed to give pregnant military spouses the
    choice of coming back to the states to have their child or staying
    alone in Landstuhl at the Stork's Nest while they wait to deliver.

              NMFA requests that Congress investigate the policy governing
            OB care given military spouses in remote locations and require
            that pregnant military spouses stationed in these locations be
            given a choice as to where to deliver their children at
            government expense.

                    SUPPORT FOR FAMILIES WITH SPECIAL NEEDS

        NMFA is grateful to Congress for directing DOD, in Section 717 of
    the NDAA for Fiscal Year 2007, to develop a plan to provide services to
    military dependent children with autism. This complicated condition
    places a burden on many military families. Unfortunately, current
    TRICARE policies increase that burden because families cannot access
    the care their children need. Frequent military moves make it difficult
    for these children to receive a consistent level of services.
    Deployment of a servicemember removes a caregiver from the home, making
    managing therapy and doctors' appointments, negotiating with school
    officials for suitable services, and caring for other children in the
    family difficult for the parent remaining behind. In the NDAA for
    Fiscal Year 2002, Congress authorized the Extended Care Health Option
    (ECHO) to provide additional benefits to active duty with a qualifying
    mental or physical disability in recognition of extraordinary
    challenges faced by active duty families because of the servicemember's
    deployment or frequent relocations that often make accessing services
    in the civilian community difficult.
        As we stated last year, families with autistic children reported
    difficulties in obtaining Applied Behavioral Analysis (ABA) therapy
    since the implementation of ECHO. We appreciate your support of section
    717 and its recognition that DOD was not fulfilling its obligation to
    these families. We thank Congress for requiring the Department to seek
    family member input in developing its plan and are monitoring this
    process closely. DOD sought parent input through a special e-mail
    address and is also working with selected parents on aspects of the
    plan. NMFA is also gathering additional input from parents, which it
    has shared with the TRICARE Management Activity. We will be working to
    ensure the concerns of these military servicemembers and spouses are
    addressed in the plan. We also thank Service leaders, especially in the
    Marine Corps, for their interest in this issue and in ensuring the plan
    will be responsive to family and mission needs.
        We remain concerned that military servicemembers with special needs
    family members continue to battle a lack of information or support and
    are often frustrated by the failure of the military health care and
    family support systems to work together and with civilian agencies to
    support their families' needs. Like the servicemembers featured in the
    recent press reports of problems at Walter Reed, special needs military
    families often experience a system that relies on them to connect the
    dots and seek out resources rather than providing the care coordination
    they need.

              NMFA requests this subcommittee monitor DOD's development of
            a plan to support military family members with autism and to
            ensure servicemembers with special needs family members are
            provided the support they need.

                                 MILITARY MOVES

        NMFA is gratified that Congress set a deadline in the NDAA for
    Fiscal Year 2007 for DOD to implement the ``Families First'' program
    for Permanent Change of Station (PCS) moves. This program is long
    overdue. It will provide much needed protections to military families
    entrusting their most precious possessions to movers, as well as full
    replacement value reimbursement for goods lost or damaged in a move. We
    implore you to continue to hold DOD's feet to the fire to deliver this
    long awaited program for military families.
        We also ask Congress to recognize that military spouses accumulate
    professional goods over the course of a military career. Frequent moves
    make it difficult to establish and maintain professional materials used
    for a job or volunteer activities that will ultimately count against
    the family's weight allowance when the time to move arrives. Military
    members are permitted a professional goods weight allowance to
    compensate for the computers, books, and equipment that must accompany
    them from duty station to duty station. We request that spouses be
    provided this professional courtesy as well.
        Finally, a PCS move to an overseas location can be especially
    stressful. Military families are faced with the prospect of being
    thousands of miles from extended family and living in a foreign
    culture. At many overseas locations, there are insufficient numbers of
    government quarters resulting in the requirement to live on the local
    economy away from the installation. Family members in these situations
    can begin to feel extremely isolated; for some the only connection to
    anything familiar is the local military installation. Unfortunately,
    current law permits the shipment of only one vehicle to an overseas
    location, including Alaska and Hawaii. Since most families today have
    two vehicles, they sell one of the vehicles. Upon arriving at the new
    duty station, the servicemember requires transportation to and from the
    place of duty leaving the military spouse and family members at home
    without transportation. This lack of transportation limits the ability
    of spouses to secure employment and the ability of children to
    participate in extra curricular activities. While the purchase of a
    second vehicle alleviates these issues, it also results in significant
    expense while the family is already absorbing other costs associated
    with a move. Simply permitting the shipment of a second vehicle at
    government expense could alleviate this expense.

              NMFA requests that Congress ease the burden of military PCS
            moves on military families by authorizing a professional goods
            weight allowance for military spouses and by authorizing the
            shipment of a second vehicle for families assigned to an
            overseas location on accompanied tours.

                      WOUNDED SERVICEMEMBERS IN TRANSITION

        As revealed in the series of articles about Walter Reed Army
    Medical Center, post-deployment transitions to and from a variety of
    DOD, VA, and civilian medical facilities and between military and
    civilian life can be especially problematic for injured servicemembers
    and their families. NMFA asserts that behind every wounded
    servicemember is a wounded family. Spouses, children, parents, and
    siblings of servicemembers injured defending our country experience
    many uncertainties. Fear of the unknown and what lies ahead in future
    weeks, months, and even years, weighs heavily on their minds. Other
    concerns include the injured servicemember's return and reunion with
    their family, financial stresses, and navigating the transition process
    to the VA. The system should alleviate, not heighten these concerns,
    and provide for coordination of care that starts when the family is
    notified the servicemember has been injured and ends with the DOD and
    VA working together to create a seamless transition as the injured
    servicemember transfers from active duty status to veteran.
    Interruption in their continuity of care can occur when the transfer of
    medical records between the two health care systems does not occur
    smoothly. The lack of a standardized DOD and VA electronic health
    record prevents the seamless transfer of information, which effects the
    quality of care given and received by wounded services members. NMFA
    urges Congress to request status reports on DOD and VA's partnership
    initiatives.
        Traumatic Brain Injury (TBI) is the signature wound for Operation
    Enduring Freedom and Operation Iraqi Freedom injured servicemembers.
    Long-term effects and appropriate treatment for this condition have not
    been adequately assessed. NMFA is concerned with DOD's decision to cut
    funding for basic research by 9 percent and 18 percent for applied
    research. Accurate diagnosis and proper treatment for TBI requires
    forward leaning initiatives by DOD and VA founded on solid research.
        When designing support for the wounded/injured in today's conflict,
    the ``government''--whether in the guise of commander, noncommissioned
    officer, Service personnel office, a family assistance center, an MTF,
    or the VA--must take a more inclusive view of military families and
    remember that a successful recovery depends on caring for the whole
    patient and not just the wound. Those who have the responsibility to
    care for the wounded servicemember must also consider the needs of the
    spouse, children, and the parents and siblings of single
    servicemembers. It is time to update TRICARE benefits to meet the needs
    of this population by allowing medically-retired wounded servicemembers
    and their families to retain access to the set of benefits available to
    active duty families during a transitional period following the
    servicemember's retirement. These benefits would include the ability to
    enroll in TRICARE Prime Remote and to continue coverage of a disabled
    family member under the ECHO.
        In the past, the VA and the DOD have generally focused their
    benefit packages for a servicemember's family on his/her spouse and
    children. Now, however, it is not unusual to see the parents and
    siblings of a single servicemember presented as part of the
    servicemember's family unit. In the active duty, and Reserve
    components, almost 50 percent are single. Having a wounded
    servicemember is new territory for many families. Regardless if the
    servicemember is married or single; their families will be affected in
    some way by the injury. As more single servicemembers are wounded, more
    parents and siblings must take on the role of helping their son,
    daughter, sibling through the recovery process. Family members are an
    integral part of the health care team. Their presence has been shown to
    improve their quality of life and aid in a speedy recovery.
        Spouses and parents of single servicemembers are included by their
    husband/wife or son/daughter's Military command and their family
    support and readiness groups during the deployment. When that
    servicemember is wounded, their involvement in their loved one's life
    does not change. Spouses and parent(s) take time away from their jobs
    in order travel to Walter Reed Army Medical Center or the National
    Naval Medical Center at Bethesda to be by their loved one. They learn
    how to care for their loved one's wounds and navigate an often
    unfamiliar and complicated health care system.
        The DOD and each military Service have developed unique programs to
    assist wounded servicemembers and their families: US Army Wounded
    Warrior Program (AW2), the Marine For Life (M4L), the Navy Safe Harbor,
    Air Force's Palace HART and the DOD Military Severely Injured Center
    (MSIC). When working well, these programs deliver information and
    provide support services for the injured and their families while still
    on active duty status. NMFA thanks the Services and the DOD for their
    efforts, but believes more must be done to ensure these programs are
    working the way they were intended to meet the needs of the growing
    number of wounded servicemembers and their families. The role of the
    DOD and the VA must be clearly explained and delineated and joint
    efforts between the Services and the VA in support of the wounded
    servicemember and their families continue as a priority.
        Because the increased number of wounded and the severity of wounds
    have strained Service programs, NMFA believes the Service wounded
    servicemember programs must be augmented with expanded case management
    support. A case manager could provide individual assistance for a
    wounded servicemember and their family while moving between the DOD to
    the VA health care systems. These individuals must have an
    understanding of the unique aspects presented in these cases, such as
    DOD and VA health care systems, eligibility for benefits and services,
    and the wounded servicemember's individual health care needs.
        To support wounded and injured servicemembers and their families
    NMFA recommends Congress:

             Extend the 3-year transitional survivor health care
            benefit to servicemembers who are medically retired and their
            families and direct DOD to establish a Family Assistance Center
            at every MTF caring for wounded servicemembers.
             Allow for the wounded servicemember and family to have
            input into the location of rehabilitation and recovery care.
            The health care team would provide alternative sites, other
            MTFs, VA hospitals, and civilian center of excellence in which
            to choose. The wishes/desires of the wounded servicemember must
            be kept in mind (i.e. close to home) along with a discussion of
            the potential positive/negative aspects each place offers for
            treatment and care.
             Create a ``case manager'' assigned to individual
            wounded servicemembers and their families to assist in the
            coordination of care during recovery and rehabilitation phases
            and transition from active duty to veteran status.
             Establish requirements for ``case workers'' to be
            familiar with the unique aspects presented with these cases and
            receive standardized training to aid in maintaining the
            continuity of care and improve the servicemember's quality of
            life.
             Remove the TGSLI disparity for eligible servicemembers
            enabling all those who served in support of OIF and OEF
            regardless of location after October 1, 2001 receive this
            benefit.

                        PAY AND COMPENSATION CHALLENGES

        NMFA thanks members of these subcommittees for their recognition
    that servicemembers and their families deserve a comprehensive benefit
    package consistent with the extraordinary demands of military service.
    We ask you to continue to evaluate changing circumstances that may
    diminish the value of that package and threaten the retention of a
    quality force. We also ask you to recognize the interaction between the
    various elements of the compensation package and how they affect
    families' eligibility for certain state and Federal programs.
        Despite regular annual pay increases, in addition to targeted
    raises, over the past several years, military pay for some
    servicemembers still lags behind civilian pay. NMFA recommends a pay
    increase of not less than 3.5 percent for fiscal year 2008. We further
    urge that future increases remain at least one-half percentage point
    above private sector pay growth until the estimated 4 percent pay gap
    is eliminated.

                  MILITARY ALLOWANCES AND SAFETY NET PROGRAMS

        In congressional testimony since 2003, NMFA has raised a long-
    standing frustration for military families: the confusion involved in
    how and when military allowances are counted to determine eligibility
    for military and civilian programs. NMFA again reinforces the need for
    Members of Congress, as well as state officials, to assist in bringing
    a sense of order in how military allowances are counted for Federal and
    state programs. We ask you to help ensure equitable access to these
    safety net services and protect families against disruptions in benefit
    eligibility caused by the receipt of deployment pays. No family should
    have to face the prospect of losing valuable benefits for a disabled
    child because a servicemember has received deployment orders.
        Families living off the installation are often there only because
    of insufficient on-base housing, yet endure higher expenses than
    families living on an installation. Ideally, therefore, NMFA believes
    tax free allowances such as BAH should not be counted under any safety
    net program, which is how they are now treated in determining
    eligibility for the Earned Income Tax Credit (EITC). NMFA understands
    this could increase the number of military families eligible for some
    of these programs, but believe this increase is justified given the
    need for equitable treatment of all servicemembers, as well as the loss
    of spouse income due to military relocations and high operations tempo.

              Inconsistent treatment of military allowances in determining
            eligibility for safety net programs creates confusion and can
            exact a financial penalty on military families. A start in
            correcting this inequity would be to adopt a common standard in
            how BAH should be counted in eligibility formulas and to ensure
            that the receipt of deployment-related allowances do not cause
            military family members to become ineligible for support
            services, such as the Supplemental Security Income (SSI), for
            which they would otherwise be eligible.

                           COMMISSARIES AND EXCHANGES

        The commissary is a key element of the total compensation package
    for servicemembers and retirees and is valued by them, their families,
    and survivors. NMFA surveys indicate that military families consider
    the commissary one of their most important benefits. In addition to
    providing average savings of more than 30 percent over local
    supermarkets, commissaries provide an important tie to the military
    community. Commissary shoppers get more than groceries at the
    commissary. They gain an opportunity to connect with other military
    family members and to get information on installation programs and
    activities through bulletin boards and installation publications.
    Finally, commissary shoppers receive nutrition information and
    education through commissary promotions and educational campaigns
    contributing to the overall health of the entire beneficiary
    population.
        The military exchange system serves as a community hub, in addition
    to providing valuable cost savings to members of the military
    community. Equally important is the fact that exchange system profits
    are reinvested in important Morale Welfare and Recreation (MWR)
    programs, resulting in quality of life improvements for the entire
    community. We believe that every effort must be made to ensure that
    this important benefit and the MWR revenue is preserved, especially as
    facilities are down-sized or closed overseas. Exchanges must also
    continue to be responsive to the needs of deployed servicemembers in
    combat zones.

                        TRICARE FEES--WHAT'S THE ANSWER?

        Last year's proposal by DOD to raise TRICARE fees by exorbitant
    amounts resonated throughout the beneficiary population. Beneficiaries
    saw the proposal as a concentrated effort by DOD to change their earned
    entitlement to health care into an insurance plan. NMFA appreciates the
    concern shown by Members of Congress last year in forestalling any
    premium increase, emphasizing the need for the Department to institute
    more economies, and suggesting further investigation of the issue
    through a report by the Government Accountability Office and the
    creation of a task force on the future of military health care. We
    appreciate your recognition of the need for more information about the
    budget assumptions used by DOD, the effects of possible increases on
    beneficiary behavior, the need for DOD to implement greater
    efficiencies in the Defense Health Care Program (DHP), and the adequacy
    of the DHP budget as proposed by DOD. We appreciate the continued
    Congressional oversight responsibilities of these issues, but ask for
    your help in avoiding a funding train wreck that could impede military
    families' access to quality care. NMFA urgently requests that Congress
    reinstate the $1.9 billion deducted by DOD from the budget proposal for
    the Defense Health Program to reflect its savings due to their proposed
    policy initiatives, such as increased TRICARE fees.
        As we stated last year, NMFA believes DOD has many options
    available to make the military health system more efficient and thus
    make the need for large increases in beneficiary cost shares
    unnecessary. NMFA urges Congress to request status reports on DOD's
    implementation of the cost-cutting measures included in recent NDAAs
    and to ensure the Department is exhausting all reasonable measures of
    economy prior to seeking beneficiary fee increases. We encourage DOD to
    implement cost saving measures such as: a systemic approach to disease
    management; an ongoing, aggressive marketing campaign to increase use
    of the TRICARE Mail-Order Pharmacy (TMOP); eliminating contract
    redundancies; delaying the re-competition of the TRICARE contracts;
    speeding implementation of the Uniform Formulary process; and
    optimizing MTFs.
        NMFA remains especially concerned about what we believe is DOD's
    continued intention to create a TRICARE Standard enrollment fee. The
    precursor to TRICARE Standard, the basic benefit provided for care in
    the civilian sector, was CHAMPUS, which was then, as TRICARE Standard
    is now, an extension of the earned entitlement to health care. Charging
    a premium (enrollment fee) for TRICARE Standard moves the benefit from
    an earned entitlement to an opportunity to buy into an insurance plan.
    Standard is the only option for many retirees, their families, and
    survivors because TRICARE Prime is not offered everywhere. Also, using
    the Standard option does not guarantee beneficiaries access to health
    care, which beneficiaries opting to use Standard rather than Prime
    understand. DOD has so far not linked any guarantee of access to their
    proposals to require a Standard enrollment fee.
        In the ongoing debate about whether or not to raise TRICARE
    beneficiary fees, NMFA believes it is important for everyone
    participating in that debate to understand the difference between
    TRICARE Prime and TRICARE Standard and to distinguish between creating
    a TRICARE Standard enrollment fee and raising the Standard deductible
    amount. TRICARE Prime has an enrollment fee for military retirees;
    however, it offers enhancements to the health care benefit. These
    enhancements include: lower out-of-pocket costs, access to care within
    prescribed standards, additional preventive care, assistance in finding
    providers, and the management of one's health care. In other words,
    enrollment fees for Prime are not to access the earned entitlement, but
    for additional services. These fees, which have not changed since the
    start of TRICARE, are $230 per year for an individual and $460 per year
    for a family.

    ------------------------------------------------------------------------
                                             Prime             Standard
    ------------------------------------------------------------------------
    Enrollment fees.................  $230/year for an    None
                                       individual; $460/
                                       year for a family.
    Annual Deductibles..............  None..............  $150/individual;
                                                           $300 for a family
    Outpatient co-payment (Prime)/    $12...............  25 percent of
     cost share (Standard) for                             allowed charges
     individual providers.                                 1,2
    Inpatient co-payment/cost share   None..............  25 percent of
     for individual providers.                             allowed charges
                                                           1,2
    Daily inpatient hospitalization   Greater of $11 per  Lesser of $535/day
     charge.                           day or $25 per      or 25 percent of
                                       admission.          billed charges if
                                                           treated in non-
                                                           network hospital
                                                           3
    Emergency Services co-payment/    $30...............  25 percent of
     cost share.                                           allowed charges
    Ambulance Services co-payment/    $20...............  25 percent of
     cost share.                                           allowed charges
    Preventive Examinations (such     None..............  25 percent cost
     as: blood pressure tests,                             share 1,2
     breast exams, mammograms,
     pelvic exams, PAP smears,
     school physicals) co-payments/
     cost shares.
    ------------------------------------------------------------------------
    \1\ Providers may charge 15 percent above the TRICARE allowable and the
      beneficiary is responsible for this additional cost, making the
      potential cost share 40 percent.
    \2\ If care is accessed from a TRICARE Prime/Extra network provider the
      cost share is 20 percent.
    \3\ If care is received in a TRICARE Prime/Extra network hospital, the
      daily hospitalization rate is the lesser of $250/day or 25 percent of
      negotiated charges.
    (For a more detailed comparison of TRICARE costs, go to: http://
      www.tricare.mil/tricarecost.cfm)

        DOD's proposal last year to increase TRICARE Prime enrollment fees,
    while completely out-of-line dollar wise, was not unexpected. In fact,
    NMFA had been surprised DOD did not include an increase as it
    implemented the recent round of new TRICARE contracts. While increases
    were at least temporarily forestalled by Congress last year, NMFA
    believes DOD officials continue to support large increased retiree
    enrollment fees for TRICARE Prime, combined with a tiered system of
    enrollment fees and TRICARE Standard deductibles. NMFA believes any
    tiered system would be arbitrarily devised and would fail to
    acknowledge the needs of the most vulnerable beneficiaries: survivors,
    wounded servicemembers, and their families.
        Acknowledging that the annual Prime enrollment fee has not
    increased in more than 10 years and that it may be reasonable to have a
    mechanism to increase fees, NMFA last year presented an alternative to
    DOD's proposal should Congress deem some cost increase necessary. The
    most important feature of this proposal was that any fee increase be no
    greater than the percentage increase in the retiree cost-of-living
    adjustment (COLA). If DOD thought $230/$460 was a fair fee for all in
    1995, then it would appear that raising the fees simply by the
    percentage increase in retiree pay is also fair. NMFA also suggests it
    would be reasonable to adjust the TRICARE Standard deductibles by tying
    increases to the percent of the retiree annual COLA.
        NMFA is dismayed DOD has taken only small steps to encourage
    migration to the TMOP. Its marketing effort to promote the use of the
    TMOP came only after NMFA and other associations raised the issue in
    congressional testimony last year in their push for the implementation
    of significant cost-saving measures prior to any increase in TRICARE
    fees. Promoting use of the TMOP makes sense, as it provides significant
    savings to beneficiaries as well as huge savings to the Department. If
    some additional cost share for the TRICARE Retail Pharmacy (TRRx) is
    instituted, NMFA believes it should not be implemented until all of the
    medications available through TRRx are also available through TMOP.
    Finally, it is well understood, and NMFA has no great argument with the
    premise, that the process of establishing a Uniform Formulary was to
    provide clinically appropriate drugs at a cost savings to the
    Department. We believe information must be gathered to determine if the
    Uniform Formulary process is meeting the desired goals.

              NMFA believes tying increases in TRICARE enrollment fees to
            the percentage increase in the retiree COLA is a fair way to
            increase beneficiary cost shares should Congress deem an
            increase necessary. We encourage Congress to direct DOD to
            continue efforts to gain real efficiencies, improve the quality
            of care, and access. NMFA requests the Government
            Accountability Office be asked to conduct a review to see if
            the Uniform Formulary process is producing the savings
            projected and the extent, if any, beneficiaries believe they
            have been denied medications they and their provider believe
            would be more clinically appropriate for them.

                                   SURVIVORS

        Recently, a story in the Washington Post raised concerns about some
    of the difficulties families encounter in the awarding of survivor
    benefits to the children of single servicemembers. NMFA has always
    emphasized that servicemembers and families must understand there is a
    package of survivor benefits. The death gratuity was originally
    intended to act as a financial bridge, to help with living expenses
    until other benefits such as the Dependency and Indemnity Compensation
    (DIC) payment, the Survivor Benefit annuity, and Social Security
    benefits begin to be paid. The Servicemembers Group Life Insurance
    (SGLI), is, as its name implies, an insurance. The death gratuity is
    not an insurance payment, even though its $100,000 payment is bigger
    than many civilian life insurance plans. Servicemembers may thus regard
    it as just another insurance plan.
        As the law is currently written, the death gratuity must be awarded
    to the next of kin. The servicemember may designate multiple
    beneficiaries for the SGLI. If the parent or sibling of a servicemember
    is named as the single beneficiary or one of multiple beneficiaries,
    there is no stipulation in the SGLI regarding the use of that money for
    any particular purpose. It is of utmost importance, in light of the
    increased value of the survivor benefits, that the servicemember be
    informed about the difference between the death gratuity and the SGLI
    payment. It is also important that servicemembers and their families
    discuss the implications and disposition of these payments, especially
    when there is a minor child involved. With the increased amount of
    survivor benefits, it is incumbent upon single servicemembers with
    children or dual servicemember couples with children to create not only
    a family care plan, but an estate plan as well.
        NMFA is concerned that the legal necessities of appointing a
    guardian for a minor child upon the death of their single servicemember
    parent may cause a delay in accessing the death gratuity at a time when
    the family may need this bridge payment the most. Legislation to change
    the way the death gratuity is awarded must meet two goals: preserving
    the intent of the death gratuity as a payment to assist with immediate
    financial needs following the death of the servicemember AND protecting
    the benefits due the minor child. NMFA would support legislation to
    allow the designation of a parent or sibling of the servicemember as
    the recipient of a portion of the death gratuity payment if there is a
    guarantee the payment would be used as that financial bridge for the
    minor child until other benefits are awarded, with the remainder placed
    in trust for the child. The protection of the financial future of the
    child is paramount. If the servicemember wants to provide for other
    family members, the proper mechanism is to designate those family
    members as beneficiaries of all or part of the SGLI.
        NMFA appreciates the work being done by DOD and the Services to
    provide training to casualty assistance officers and to make sure
    survivors are receiving accurate information in a timely manner. The
    survivor guide published by DOD and available on-line, A Survivor's
    Guide to Benefits: Taking Care of Our Own, has already been updated
    several times as new benefits were implemented or needs for information
    identified. The Army set up the Families First Casualty Call Center,
    recently renamed Long Term Family Case Management (LTFCM), a one stop
    resolution center to assist surviving family members with questions
    concerning benefits, outreach, advocacy and support. This call center
    is available for immediate and extended family members. The DOD/VA
    committee on survivors is still meeting and reviewing concerns as they
    arise. NMFA has surfaced concerns from family members who have reached
    out to us and have been pleased at the response of all the specific DOD
    and Service casualty assistance offices to these families.
    Unfortunately, we still occasionally hear of widows or parents who
    still do not know who to call when there is a concern.
        NMFA still believes the benefit change that will provide the most
    significant long-term advantage to the financial security of all
    surviving families would be to end the DIC offset to the Survivor
    Benefit Plan (SBP). Ending this offset would correct an inequity that
    has existed for many years. Each payment serves a different purpose.
    The DIC is a special indemnity (compensation or insurance) payment paid
    by the VA to the survivor when the servicemember's service causes his
    or her death. It is a flat rate payment of $1,067 for the surviving
    spouse and $265 for each surviving child. The SPB annuity, paid by DOD,
    reflects the longevity of the service of the military member. It is
    ordinarily calculated at 55 percent of retired pay. Military retirees
    who elect SPB pay a portion of their retired pay to ensure that their
    family has a guaranteed income should the retiree die. If that retiree
    dies due to a service connected disability, their survivor becomes
    eligible for DIC.
        Four years ago, survivors of servicemembers killed on Active Duty
    were made eligible to receive SBP. The amount of their annuity payment
    is calculated as if the servicemember was medically retired at 100
    percent disability. The equation is the basic pay times 75 percent
    times 55 percent. The annuity varies greatly, depending on the
    servicemember's longevity of service.
        Surviving Active Duty spouses can make several choices, dependent
    upon their circumstances and the ages of their children. Because SPB is
    offset by the DIC payment, the spouse may choose to waive this benefit
    and select the ``child only'' option. In this scenario, the spouse
    would receive the DIC payment and the children would receive the full
    SBP amount until each child turns 18 (23 if in college), as well as the
    individual child DIC until each child turns 18 (23 if in college). Once
    the children have left the house, this choice currently leaves the
    spouse with an annual income of $12,804, a significant drop in income
    from what the family had been earning while the servicemember was alive
    and on Active Duty. The percentage of loss is even greater for
    survivors whose servicemembers served longer. Those who give their
    lives for their country deserve more fair compensation for their
    surviving spouses. We urge Congress to intensify efforts to eliminate
    this unfair ``widow's tax'' this year.
        NMFA believes several other adjustments could be made to the SBP.
    These include allowing payment of SBP benefits into a trust fund in
    cases of disabled children and allowing SBP eligibility to switch to
    children if a surviving spouse is convicted of complicity in the
    member's death.
        NMFA applauds the enhancement of medical benefits included in the
    NDAA for Fiscal Year 2006 making surviving children eligible for full
    medical benefits to age 21 (or 23 if they are enrolled in college)
    bringing them in line with the active duty benefit for dependent
    children. To complete the benefit package we ask Congress to allow
    surviving children to remain in the TRICARE Dental Program until they
    age out of TRICARE and, in cases where the surviving family had
    employer-sponsored dental insurance, treat them as if they had been
    enrolled in the TRICARE Dental Program at the time of the
    servicemember's death.

              NMFA recommends that surviving children be allowed to remain
            in the TRICARE Dental Program until they age out of TRICARE
            eligibility. NMFA recommends the DIC offset to SPB be
            eliminated to recognize the length of commitment and service of
            the career servicemember and spouse and relieve the spouse of
            making hasty financial decisions at a time when he or she is
            emotionally vulnerable. The surviving children of single
            servicemembers who die on active duty require special
            protections to ensure the proper financial disposition of the
            enhanced survivor benefits. NMFA asks Congress to provide the
            proper protections for the child(ren) if allowing a guardian to
            receive the death gratuity and to remember the original intent
            of the death gratuity payment was to serve as a financial
            bridge until the initiation of the payment of the survivors'
            benefits.

                         STRONG FAMILIES--STRONG FORCE

        Higher stress levels caused by open-ended and multiple deployments
    require a higher level of community support. We ask Congress to ensure
    a consistent level of resources to provide robust quality of life,
    family support, and the full range of preventative and therapeutic
    mental health programs during the entire deployment cycle: pre-
    deployment, deployment, post-deployment, and in that critical period
    between deployments.
        Military families share a bond that is unequaled in the civilian
    world. They support each other through hardship, deployments, PCS
    moves, and sometimes, the loss of a loved one. The military community
    is close knit and must be so. It is imperative our Nation ensure the
    necessary infrastructure and support components are in place to support
    families regardless of where they happen to be located geographically.
    More importantly, we ask you and other Members of Congress to ensure
    that the measures undertaken today in the interest of cutting costs and
    improving efficiency do not also destroy the sense of military
    community so critical to the successful navigation of a military
    lifestyle.
        Educating families on what support is being provided helps reduce
    the uncertainty for families. Preparation and training are key in
    reaching families and making sure they are aware of additional
    resources available to them. While NMFA appreciates the extraordinary
    support that was made available to address the special needs of the
    families during deployment extensions and the recent ``Surge'', our
    Nation must ensure this level of support is available to all families
    day in and day out. Military family support and quality-of-life
    facilities and programs require dedicated funding, not emergency
    funding. Military families are being asked to sustain their readiness.
    The least their country can do is make sure their support structure is
    consistently sustained as well. Strong families equal a strong force.
    Family readiness is integral to servicemember readiness. The cost of
    that readiness is an integral part of the cost of the war and a
    national responsibility. We ask Congress to shoulder that
    responsibility as servicemembers and their families shoulder theirs.

        Senator Ben Nelson. Thank you.
        I want to personally thank all of you for being here,
    sharing your experiences, because they are not simply unique,
    but they're terribly important for us to understand as we look
    at the family part of the service. So, I just want to thank you
    for your articulate presentations of your experiences.
        I'm going to ask my colleague, Senator Akaka, to start with
    the questions again.
        Senator Akaka. Thank you very much, Mr. Chairman.
        I, too, want to echo what you just said about responses to
    the statements that have been made. We wanted to hear directly
    from you and people who have the experience.
        My first question is to Mrs. Hall. I would say that I would
    invite other witnesses to comment, if they wish. But because
    you were a dependent of a servicemember, growing up, and before
    becoming a servicemember yourself, and a military spouse later
    in life, whether you feel the stresses military families are
    facing today are new or unique, or are today's challenges
    similar in mind, though perhaps not in degree, to the stresses
    you have seen throughout your lifelong connection with the
    military? In other words, do we have new problems now which
    require new solutions, or are you seeing the same issues now
    that you have seen before, in which case we should expect that
    we should have effective family support programs in place?
        Mrs. Hall. Thank you for your question, Senator.
        Of course, I'm a parent now, and I didn't used to be, when
    I was a military brat, and that makes these issues feel more
    pertinent. But my perception is that the OPTEMPO is higher, and
    the need is greater, and it feels much more pertinent for
    family support than even when I was Active Duty, several years
    back, not even going back to my childhood, but just from my
    early adult years. The need for good, solid family support to
    meet the OPTEMPO that we're at right now feels more pertinent
    than ever, sir.
        Senator Akaka. Does anyone want to comment on that?
        Mrs. Piacentini. I would, Senator Akaka.
        Senator Akaka. Yes.
        Mrs. Piacentini. I was also raised in the military. My
    mother had a great support system with the spouses around her.
    She became a great mentor for those around her. But she didn't
    face, again, the OPTEMPO that our soldiers are facing. My
    father, of course, was through the second World War, Korean
    War, the Cold War, and Vietnam. But the OPTEMPO was different,
    and I think that our families now, especially engaging so many
    Reserve and Guard members, the resources are not there for them
    to maintain and be successful military families.
        So, I feel it's much more difficult now, even with a lot of
    the Internet resources. People are still people, they still
    need other people to communicate with to get the information
    that they need.
        Senator Akaka. Thank you for that, Ms. Piacentini.
        I would--and, as I mentioned in my opening statement, I
    wanted to know your feelings about involving a community,
    whether caring for military families is strictly the role of
    DOD and the military Services, or is there not also a role for
    the larger civilian community as citizens, and especially in
    cities and counties with military installations as neighbors.
        Ms. Raezer, you did mention the community in your
    testimony, and you quote a master chief petty officer who used
    the phrase, ``self-reliant, yet well-connected.'' So, let me
    start with you.
        Are the issues we are discussing today issues the DOD,
    Congress, the military families, and groups like yours should
    solve by taking care of their own, or is there a role for the
    larger community? Do we need more help from the rest of our
    fellow citizens? Do military families want more help from their
    fellow citizens?
        Ms. Raezer. Senator Akaka, the military community does a
    wonderful job of taking care of its own. These spouses here are
    a good example of military families taking care of their own.
    But military families, to us, are our Nation's families.
    Military children are our Nation's children. Military families
    are a part of the greater community. Most of our military
    families live off the installation. Our Guard and Reserve folks
    are scattered throughout the Nation. Over 80 percent of our
    military children go to civilian public schools. We need those
    schools to embrace our children, and they have.
        One of the initiatives that our association has praised is
    DOD's America Supports You Program that highlights all of those
    community organizations, corporations, kids groups, mom-and-pop
    initiatives to support our troops. I talk to families. These
    outpourings of support, the help, whether it's quilts, whether
    it's people having a bake sale to support families and buy
    phone cards, it means a lot, because our military families are
    part of this Nation, and they want to feel that the rest of the
    Nation is behind what they do. Whether or not they agree with
    the war, they are that connection with our larger community,
    and they need that connection with the larger community. So,
    it's our responsibility, as a Nation, to reach out to these
    folks.
        Senator Akaka. Let me ask another question.
        Senator Ben Nelson. Sure.
        Senator Akaka. Military families have some unique
    challenges in financial planning--and that was mentioned, too--
    especially during deployments, when the servicemembers'
    allowances go up, but so do the families' expenses. You also
    mentioned the words ``predatory lenders.'' This is especially
    true for Guard and Reserve families who may see their health
    care coverage change, depending on the deployment status.
    Recently, I organized a seminar on financial planning
    assistance just for military families in Hawaii. With an
    admiral, we worked this out, and it was a huge success. We had
    a huge turnout, which confirmed my belief that there is a big
    demand for help in managing finances.
        Do you have access to quality financial planning assistance
    from people who are familiar with both best practices in this
    area, as a whole, as well as the unique issues military
    families face?
        Mrs. Piacentini, let me start with you on that, because as
    a Reserve component family, you may not have had the support
    structure an Active Duty installation provides. Would you make
    some comment about this?
        Mrs. Piacentini. Well, absolutely. Since we are so
    geographically dispersed, we don't have access to military
    installations that often. Some areas do, but, for the most
    part, we don't, and we have to rely on our Family Programs
    Offices to send out that information. They would have
    deployment briefings, where they would bring in the financial
    experts to the units to educate those that would attend. But,
    for the most part, so many of them wouldn't attend, because
    there's a part of them that's in denial as to the fact that
    they're soldiers being mobilized and deployed. They just don't
    always--at the time that you have the resources, they're not
    always there to take the information in. Unfortunately, we
    don't have that continual follow-up to reinforce, all the time.
        The smaller communities embrace the military, I have found,
    in a much larger way throughout the community than larger
    communities. Because they are small, they know their people and
    they take care of them from all areas. So, the Army Reserves,
    unfortunately, we don't always connect often enough with
    those--and we do need the resources out there.
        Senator Akaka. Thank you.
        Mr. Chairman?
        Senator Ben Nelson. Thank you, Senator Akaka.
        I want to ask a question about Military OneSource. I've
    been told it's a very valuable resource, and it's accessible by
    military families, no matter where they're located or what
    Service they belong to. NMFA reports that Military OneSource is
    underutilized by military families. Ms. Raezer's already told
    us that. So, Ms. McDonald, have you used Military OneSource, or
    is it part of the tools that you use with your fellow spouses?
        Mrs. McDonald. It's absolutely part of the kit bag, but I
    don't dial for them. I do reference. We have military life
    consultants on Fort Hood, who use it as a reference, as well. I
    will tell you--I have a chart in front of me that can break
    down for you what kind of calls I get, but I'll tell you that
    what I'm impressed with the chart is that not as many of them
    are about deployment questions as they are about living-life
    questions. Some of them, healthcare; some of them, mental
    healthcare. Where they get referenced is not necessarily a
    phone call and I reference Military OneSource; it's when
    Specialist Jones' wife gets a success story for herself, and
    she tells Specialist Smith's wife that she had a success. So,
    it's mouth-to-mouth marketing on Military OneSource.
        Flooding the market with information is absolutely the
    first step, but confidence in the program is the second step,
    and that happens customer-to-customer. I think the senior
    leadership is very aware of it and references it often, but I
    think it's actually kind of an impressive thing that you can
    call them, from how to look for scholarships to how to change
    your tire in a rainstorm on the highway by yourself. It's an
    impressive program. I will tell you that I agree that it's
    underutilized, but I think as we continue with this, it's going
    to be mouth-to-mouth-to-mouth-to-mouth success stories that is
    going to make the next person call.
        Senator Ben Nelson. Thank you.
        Ms. Sumrall, you're stranded, by comparison. Have you had
    any experience with Military OneSource?
        Mrs. Sumrall. As a matter of fact, I have. Military
    OneSource is probably the most often-mentioned resource that
    some of these parents that have been e-mailing me have said,
    ``I'm unable to, because of, I'm not close to my son or my
    daughter's unit to be able to participate in their family
    readiness group,'' and, even though they try and do this via e-
    mail, to stay in touch, they have been going onto Military
    OneSource, because the word has gotten out--the Guard really
    pushes Military OneSource--and they've been able to access a
    lot of different things, and they're really, I think, intrigued
    by the fact, just like Connie said, that we have, if you need
    to find somebody to groom your dog, you can go on there and do
    that.
        I was in a meeting recently with Secretary Hall and some of
    the senior Reserve component spouses, and he asked, he said,
    ``Well, is it true that they have to answer by the third
    ring?'' So, we tested it, and, sure enough, the phone was
    answered by the third ring.
        I would say it's a valuable resource, especially for Guard,
    where you have people who are in isolated communities.
        Senator Ben Nelson. Thank you.
        Anybody else have a comment about it, Military OneSource,
    or a different experience?
        Mrs. Piacentini. I've not used it, but I talk to many
    individuals who have, and they've appreciated the fact that
    they have it available to them.
        Senator Ben Nelson. Ms. Raezer?
        Ms. Raezer. What we hear from families who have used
    OneSource is that they've been very satisfied. We still
    encounter families who have never heard of it or have not used
    it. We haven't seen usage numbers in a while, but that may be
    something you could ask the Services for, for the record,
    because it's a wonderful resource. The marketing seems to go
    slow, and I think a lot of folks don't realize it's there.
        I think it's interesting, in terms of some of the things
    that folks have talked about, that people use it, and that gets
    back to that bedrock support for families. It might not be a
    deployment question that's prompting them to call, this time,
    for Military OneSource, it may be just that life-skill issue.
    But if the deployed spouse is the one who handled the life-
    skill issue, who handled finding the vet for the dog when
    you've moved, then having that resource for that family is very
    important. If they're satisfied with finding the dog groomer,
    they may call back when they have another deployment-related or
    more serious problem. So, we encourage folks to use it, but
    continue to be disappointed that we still hear from many
    families who don't know about it.
        Senator Ben Nelson. I hope you'll share that number with me
    before I leave.
        Mrs. Hall. I just wanted to say, I knew about it, as well,
    when my husband recently deployed. I knew about it. I was
    briefed on it shortly before he went, and not this deployment,
    but previously, I had gone online, and surfed around and
    checked it out, and see it as a great resource. I'm inclined to
    think that perhaps younger troops, who are more used to getting
    information by surfing for it, might be more interested in it
    and more excited about it. [Laughter.]
        Senator Ben Nelson. Better than the yellow pages,
    sometimes, huh? [Laughter.]
        Senator Ben Nelson. I've been hearing that there are--and
    you've all mentioned--money shortfalls in military services,
    resulting in cutting funds, in some cases, for family programs
    on military installations.
        Ms. McDonald, have you noticed any cutbacks at Fort Hood?
        Mrs. McDonald. Sure. [Laughter.]
        Senator Ben Nelson. Okay.
        Mrs. McDonald. It's the Army's largest installation. I'm
    sure I am going to see them.
        I came into Fort Hood as a new person. In 27 years, we
    had--well, in 26 years, we hadn't been at Fort Hood, so I come
    in with a lot of experience as an Army spouse, but it is a new
    place to me. So, I guess, coming in with new eyeballs, it adds
    a good thing to it.
        Some of the cuts--the intent is that families don't see the
    cuts, but what I do is, as a volunteer who has worked with
    family programs, so I'm in there with them, and the staff
    members, if you reference something that you knew was there
    before as a volunteer, and the answer is, ``Oh, we can no
    longer get that,'' or, ``We don't have a staff member who does
    that anymore. Someone else has taken on that hat,'' my
    concern--big word, ``my'' concern--is that the ACS staff
    members are wearing way too many hats for the one person that
    they may be. We have a lot of one-person programs that need to
    be deeper. As you're getting into--and with that become--bless
    their hearts, they're in there. I mean, they have a heavy
    rucksack, and they refuse to put it down, but they're starting
    to droop. As volunteers come in, they have the same thing,
    they're living it and breathing it personally, and then coming
    in to help the programs that help folks like themselves. With
    that, I can definitely see it, but I think I see it maybe a
    little quicker than someone who's coming in to use the program,
    because they're coming in to use the program, and, as soon as
    they walk in the door, they're greeted, their questions are
    answered, I'm in the wings and can see what's going on behind
    stage. Yes, I see the cuts. They're definitely there.
        Senator Ben Nelson. Is that just generally what your
    thoughts are, as well, the rest--anyone else like to comment on
    it?
        Ms. Raezer. Our installation volunteers from across all the
    Services report things such as Mrs. McDonald mentioned, the
    Family Center staff that's not replaced when somebody leaves,
    so that people are wearing multiple hats, cutbacks in
    janitorial services and routine maintenance, and hours that are
    changed or diminished. When you're dealing with communities
    under as much stress as our communities are under, that can be
    very hard for a community.
        Senator Ben Nelson. Well, I think Senator Akaka has some
    other questions. As the co-chair here today, I'm going to turn
    it over to him, because I have to be somewhere else at 6 p.m.
        I want to thank all of you for being so frank and candid,
    but also want to thank you for your service, and for your
    spouses' service, as well. The American people support our
    military, and we want to be sure that the budget and the
    resources reflect that, as well as the attitude of the American
    people. There probably is no better way to do it than to be
    sure that the resources are there, and that the programs are
    there for families, that the compensation is appropriate for
    families. We're committed, with the Readiness and Management
    Support and the Personnel Subcommittees, to do our very best to
    get that done.
        Thank you very much, and may God bless you and keep you,
    and thank you, as I walk out the door here.
        Thank you. It's all yours.
        Senator Akaka [presiding]. Yes. Let me say, thank you very
    much, Chairman Nelson, for agreeing to hold this hearing and
    for creating it so that it has been such a success, at this
    time. So, thank you very much, Ben.
        I just have a few questions. This is something that has
    been on my mind, and this has to do with mental health
    counseling and the stigma that's attached to it. I would like
    to ask any of you who can respond, do you think servicemembers,
    spouses, or dependents feel free to seek mental health
    counseling when they need it, or is there still a stigma in our
    society, or in our military culture, that inhibits people from
    asking for this kind of help?
        Mrs. McDonald. At Fort Hood, where----
        Senator Akaka. Ms. McDonald?
        Mrs. McDonald.--I should tell you that Fort Hood puts the
    ``hoo'' in ``hooah.'' [Laughter.]
        We have military life--Military Family Life Counselors. We
    call them MFLCs. Of course, we can't use regulars, we have to
    create an acronym. But--and we have a pilot program at Fort
    Hood, as well, on coaching young families, that's come in. Both
    of those are nonmedical models for support and counseling.
        I will tell you that the answer--I would love to tell you,
    Senator Akaka, the answer is simple on that, but I think it's
    as varied as our military families themselves are. I don't
    think it's the stigma within the military community alone. It
    will also be the stigma that may--they have grown up with in
    the community they're from. We are very diverse. There could be
    the idea that--I spent time as a staff member at Fort Bragg,
    and went through the--assessments of what it was like for--
    mental health assessment--what did that mean for the soldier?
    The idea that you couldn't--if you can't keep your family
    happy, how can you do your mission? I think we've come a long,
    long way from that. I won't say we're done, by a longshot. But
    I do believe that the MFLCs are the step in the right
    direction, and the fact that it is a nonmedical model.
        I can call one of these folks, who rotates every 45 days--
    we have three of them at Fort Hood, but we would like to have
    more--I can call one of them, and they will meet at Starbucks
    downtown. I don't have to go on the installation, and they will
    chat with me. They are almost like traffic cops to decide
    whether or not what I need is support or I need medical model
    help. It's a first step, and it's instigated by me. No one
    would know it but me. They do not keep records. I think it's a
    step in the right direction for, I think, maybe what your
    concern is. But, again, that answer is very difficult, because
    we are so very different, as human beings. The community that
    we work within, live within, would know if one of these
    counselors stayed with us the whole time, then, if I do happen
    to meet them at Starbucks for coffee, they're going to want to
    know, has Connie got problems, or has Connie got a friend that
    she's having coffee with? One of the nice things about this is
    the rotation. This program doesn't have a face, it has a
    reputation. I think that's a step in the right direction. At
    least that's the way it's sounding like at Fort Hood. We've
    just been working with this, but I do know this program--and,
    Joyce, I don't know if I'm right on this--but this program had
    great, great strengths coming out of Alaska, with the extension
    notice there.
        Senator Akaka. Yes.
        Ms. Raezer. We still see and hear about the stigma, but we
    also hear, even more often, that the issue is access to mental
    health providers. There's a national shortage of child and
    adolescent psych providers. So, that's been a concern for many
    of our families. We agree with Connie's assessment of the
    MFLCs. They're a wonderful addition to that mix on an
    installation to provide support.
        One thing that we hear, in terms of the servicemember
    seeking help, is the tone is set by the command. If the general
    comes back from deployment and says, ``I'm going to go see a
    counselor, just to talk things out,'' there's no stigma for his
    subordinates, because if the general can do it, it's okay for
    the captain and the colonel and the sergeant and the specialist
    to do it. So, we've been really excited when we hear a general
    say, ``When my folks and I come back from deployment, we are
    all going to seek counseling, just to talk to someone.'' So,
    the command has a big influence on that stigma, and getting rid
    of that stigma.
        Senator Akaka. Well, another interest that I had, I would
    like to ask anyone on our panel who can respond with your views
    on programs such as contracting out and military/civilian
    conversions. What is the impact, if any, on the families who
    depend on these services, if the provider of those services is
    a military member or a Government civilian or a contractor?
    Does it matter to you? Does service get better or worse when
    service provider positions are connected or converted from a
    military to a civilian person, or from a Government civilian to
    a contractor? I think you understand what I'm asking here, and
    would like to have your comments on that.
        Mrs. Piacentini. If I might comment.
        Senator Akaka. Mrs. Piacentini?
        Mrs. Piacentini. Yes. There is a difference. If you have a
    civilian contract or--to buy positions for a Family Programs
    Office to slot in those civilian contractors, if those civilian
    contractors have no military experience, no education in the
    military, they can't communicate with military families
    appropriately. They don't understand the lifestyle and where
    they're coming from. So, it can be a real disaster if they
    aren't the right people for those jobs. Many times, they aren't
    and the families suffer.
        Senator Akaka. Any other comment?
        Ms. Raezer. There are some things that have been a benefit
    because of the contracting out or the privatization. There's a
    lot of new housing on military installations that wouldn't have
    been there if we'd have waited for MILCON dollars to build that
    housing. The privatization initiative has helped. Many of the
    family centers, as they've done a conversion from DOD or
    service civilian employees, they've gone to contractors--we
    have many military spouses who are working as contractors--
    there are sometimes some issues for them in learning how to be
    a contractor. But that has helped.
        What I said about mental health also applies to
    contracting. It goes back to the oversight and the willingness
    of the person in charge to set and enforce standards in those
    contracts.
        Senator Akaka. Yes.
        Ms. Sumrall, would you make a comment on that?
        Mrs. Sumrall. I would have to say that having lived on
    military installations, and had the services of military
    facilities and military personnel, and then to make that
    transition either of necessity or by choice, in some cases, I
    would have to say that going with someone who is not totally
    familiar with military and how things work, it does pose a
    problem sometimes. They don't understand, for example, the
    TRICARE. They may have signed up for TRICARE, and may not
    understand the difference between TRICARE Prime and TRICARE
    Standard. Then, you have a hassle about your medical claim. Or
    if you have--I know of one person who went to her private
    physician, and she made the comment about, ``Well, my husband
    is now deployed as a guardsman.'' The doctor immediately said,
    ``Oh, well, let me give you some type of tranquilizer, or
    whatever, because I know you're having a rough time.'' So, I
    would say that and, to me, the thought of someone who might be
    dispensing drugs to calm someone's nerves is perhaps not the
    best thing, especially if the person doesn't need them. So, I
    think, there, that--even with Guard, that having that
    connection with someone who at least does understand the
    military, perhaps with prior military service themselves, or
    military family members or something, does make a difference.
    That's not to say that all contractors would do things like
    that. I'm sure there are some excellent ones out there. But I
    think it is something that we do need to be concerned about.
    The privatization, in some cases, of things, say, like the
    medical, is maybe a little bit scary.
        Senator Akaka. Well, this has been excellent. I just want
    to open it up, in case any of you want to make any closing
    statements. I would certainly ask for that, if you do. [No
    response.]
        Otherwise, let me tell you that this has been a great
    hearing for us, the Subcommittee on Personnel and the
    Subcommittee on Readiness and Management Support has set up
    this hearing to hear directly from you. This has been helpful
    to us. I want to also tell you that we commend you for your
    spirit and for your sacrifices and for the support that you
    give our military, because you have made a huge difference in
    the successes that we've had.
        What's coming about now is that I feel that families are so
    important to the life of our troops that we need to pay
    attention to it. This is what we're trying to do. What has
    happened here will help us determine what to do next.
        I look forward to your continuing contact, in case you do
    have other offers to make to us about helping families.
        But this is what it's all about, and I want to thank you
    again, and thank Chairman Nelson for his part in this.
        We may have another hearing on this, but I'm not certain
    about that because we're looking at particular points and areas
    here.
        Let me finish with this one, and this is about the
    predictability of deployments.
        The Army has just changed its policy on deployments to Iraq
    or Afghanistan from 12 months to 15 months. I would like to ask
    anyone on this panel to give me your view as to the importance
    of predictability of deployments. If you know upfront that it
    will be 15 months, does that help, or does that not really make
    that much difference in meeting all the challenges of that
    separation?
        Mrs. McDonald. Senator Akaka, if you don't mind, I'm a
    spouse of exactly one of those soldiers.
        Senator Akaka. Yes.
        Mrs. McDonald. He will be gone two Christmases, which
    wasn't the original plan. If you guys don't mind?
        Ms. Raezer. Go for it.
        Mrs. McDonald. I will tell you--living at Fort Hood with
    two divisions that are on a rotating basis, they replace each
    other--I will tell you that I would rather, right now, that my
    servicemember be extended to 15 months than ask the 4th
    Infantry Division to turn around and go back in less than 9. I
    think the mental health, the physical health of the soldier
    first, the family members second, and the overall health of the
    post, has to call for that.
        It takes the--the original plan was not to rotate every
    year, it was--if I remember--if I have this right, it was 2
    years home, 1 year down, 2 years home, 1 year down. At Fort
    Hood, we're not getting 2 years home. At this point, they're
    not getting 1 year home if we don't do this extension. So, if
    that's the answer, if that's the purpose of this, I think the
    guys downrange, the guys and gals downrange would rather be
    where they are, let the folks rest who need to rest, because
    one day they're going to be the ones who need to rest.
        If the predictability factor is that you tell me, as a
    family member, that there's a possible extension, which will--
    by the way, no surprise--that if we got that, I would rather
    know that that extension is a possibility, and you turn around
    and guaranteeing me on predictability, that he's home for 12
    months, where I can give him chicken noodle soup and I can get
    him off on R&R, and we can use our camper, and he can be at
    home, and see some of the kids' stuff. Absolutely, the
    predictability, for me, is more--of when he's home than how
    long he's deployed. That is personal, my view, but I'm sitting
    in that hotseat, so I'm taking it on.
        Senator Akaka. Thank you.
        Mrs. McDonald. Okay.
        Senator Akaka. Mrs. Sumrall?
        Mrs. Sumrall. From the standpoint of the National Guard and
    from my volunteer service with the ESGR, I can tell you that
    knowing that the Guard and the Reserves are now going to have a
    designated time to be deployed makes a tremendous difference
    from the standpoint of the employer. Of course, that impacts on
    the family, because so many of our employers--we have some that
    are absolutely wonderful and totally supportive--but we have
    people who own small businesses, we have people who are afraid
    their company's going to downsize, we have farmers, we have a
    lot of people that, being gone for extended periods of time,
    and not knowing for sure how long that will be, if and when
    they do deploy the next time, is a very frightening factor in
    the security of the family and how they are provided for. So--
    and, like I say, some of the employers are not happy at all
    about it, and we are running into situations where they're
    somewhat leery of hiring people who have any type of
    affiliation with the Guard or Reserves.
        So, I would say, from the standpoint of the financial
    security of the family, as well as job security of the deployed
    servicemember, that knowing how long a deployment is going to
    be is, just, a tremendous gift to that family, to know what to
    expect.
        Senator Akaka. Mrs. Hall?
        Mrs. Hall. When you hear about anyone else being extended,
    you think it might happen to your servicemember, too. The
    entire time my husband was gone, people would ask me, ``Oh, so
    when is he coming back?'' Every single time, I'd say, ``well,
    we think January,'' because that's the best you can do when you
    know that the possibility of an extension is out there.
        I think it has a larger effect on, just, your ability to
    plan the future and your ability to think your way through what
    this deployment's going to mean to your family. It has a larger
    effect than you even realize at the time. I think, only in
    retrospect do you realize, ``Wow, I really had no idea when
    that was going to end.'' That might be overstating it. I had a
    good idea, but I wasn't certain when it was going to end.
        In our case, he came home on time. But we certainly know
    lots and lots of Air Force people who did not come home on
    time. It sounds to me like the Air Force has a slightly
    different deployment model, in that instead of large battalions
    going out, we tend to go out one person at a time from
    different shops. So, that deployment has--if it's extended, has
    an effect more on that individual family, perhaps, than in the
    larger community. Just a perspective from the Air Force, there.
        Yes, extensions, big impact on family feeling about how
    that deployment is going.
        Senator Akaka. Ms. Piacentini?
        Mrs. Piacentini. Predictability is essential. If the Army
    Reserve can use the model that they are trying to develop, then
    the families can certainly count on when that soldier's going,
    when he or she will be home, and what they'll be doing in that
    period when they are home. As a mother of a 4th Infantry
    Division soldier, I don't want him over there longer, because
    he's my son, but if he has to go, he goes. So, as a parent,
    it--I think I look at it a little bit different than as a
    spouse, probably.
        Senator Akaka. Ms. Raezer?
        Ms. Raezer. The only thing predictable for our families
    since this war started is that the tour length is
    unpredictable. I think it has been hard. Families have been
    promised, in the past, ``The tour length will be this long.''
    The savvy families aren't circling that end date anymore,
    they're counting off the number of days that servicemember has
    been gone, but they're not circling the end date, they are
    still going to be looking for the other shoe to drop, even with
    this latest extension.
        We are concerned about predictability. We are also
    concerned about tour length. In our surveys, families have told
    us long tour lengths, missing the two Christmases, is hard.
    We've seen information that was presented on some of the Army
    mental health studies that graphs problems in theater with
    servicemembers and their concerns, and those mental health
    issues affecting servicemembers in theater go up dramatically
    the longer the tour is.
        So, we are worried about tour length and what that will do
    to the servicemembers. How long will those servicemembers need
    to recover after being gone for 15 months? So, I think we have
    to be really careful about announcing an extension and saying,
    ``This is going to make us more predictable,'' because I think
    the families are very wary, and we have to be careful about
    expectations. Somebody needs to be looking at tour lengths.
        Senator Akaka. Well, again, I want to say thank you to all
    of you. This has been tremendous. It will be helpful, again, as
    I said.
        This hearing is adjourned.
        [Questions for the record with answers supplied follow:]

                 Questions Submitted by Senator Robert C. Byrd

                            FAMILY SUPPORT SERVICES

        1. Senator Byrd. Secretary Dominguez, Dr. Davis, Mr. McLaurin, and
    Lieutenant General Brady, taking care of the families of our deployed
    National Guard and Reserve servicemembers is just as important as
    buying the equipment they need in the field. Many feel that these
    servicemembers are underserved in comparison to our Active-Duty Forces,
    not only when it comes to equipment, but also when it comes to benefits
    and family support services. In the past, what has been of paramount
    concern to the families of the West Virginia National Guard is seeing
    that their deployed family member receive proper body and vehicle
    armor. But in addition to making sure these individuals have proper
    equipment, what efforts are currently underway to improve the quality
    of family support services to the families and, in particular, what
    efforts are underway to improve access to those living in rural or
    remote areas?
        Mr. Dominguez. The operational tempo (OPTEMPO) for today's National
    Guard/Reserve is the highest it has been since the Korean War. This not
    only affects the member, but also their families. The mission of
    National Guard and Reserve family programs is to prepare, support, and
    sustain families when their military member is activated and/or
    deployed. Support is facilitated through education, outreach services,
    and partnerships by leveraging resources, training, and constantly
    capitalizing on new capabilities, concepts, and technological advances.
        The National Guard Joint Force Headquarters Commands (JFHC) within
    each State, territory, and the District of Columbia are responsible for
    coordinating family assistance for all military dependents, regardless
    of Service and component, within the State and in the geographically
    dispersed areas beyond the support capability of military facilities.
    To coordinate family assistance, each JFHC is authorized one State
    Family Support Director. The National Guard has a strong Joint Service
    family support network, organized in each State and territory by the
    National Guard State Family Program Director, and reinforced by a Wing
    Family Program Coordinator at each Air National Guard Wing. Family
    Assistance Centers are regionally based and are the primary entry point
    for all services and assistance that any military family member,
    regardless of Service or component, may need during the deployment
    process. This process includes the preparation (pre-deployment),
    sustainment (actual deployment), and reunion phases (reintegration).
        In addition, the following services are available to provide
    support to families living in remote or rural areas:

             Military OneSource (www.militaryonesource.com) is a
            key resource available to National Guard/Reserve members and
            their families. One Source supplements existing family programs
            with a 24-hour, 7 days a week, toll-free information and
            confidential referral telephone line and internet/web-based
            service. It is available at no cost to Guard and Reserve
            members and their families regardless of their activation
            status. OneSource provides information ranging from everyday
            practical advice to deployments/reintegration issues and will
            provide referrals to professional civilian counselors for
            assistance.
             Military Family Life Consultants (MFLCs) are another
            resource available to National Guard and Reserve families. The
            goal of the MFLC is to prevent family distress by providing
            education and information on family dynamics, parent education,
            available support services, and the effects of stress and
            positive coping mechanisms.
             As a result of section 675 of the National Defense
            Authorization Act for Fiscal Year 2007, Joint Family Support
            Assistance Programs are in the design phase. Critical
            components of the model involve building coalitions and
            connecting Federal, State, and local resources and non-profit
            organizations to support Guard and Reserve families. Best
            practices learned from 22 Inter-Service Family Assistance
            Committees, the Joint Service Family Support Network, and
            exemplary State models, such as Minnesota and New Hampshire,
            will guide the planning process.

        Dr. Davis. The Navy has initiated a number of efforts to support
    and sustain the members and families of the Reserve community during
    this time of Reserve call-ups for the ongoing war on terrorism. The
    challenge within Navy is that Reserve members are often activated
    individually from units and are deployed solely or with one or two
    others from the same Reserve unit. The Navy calls these sailors
    ``Individual Augmentees (IAs).'' This situation often leaves IA
    families in mid-America without a nearby support system of other
    families whose loved one is also activated and deployed. To address
    this, the Navy has developed three separate IA handbooks, one targeted
    for the servicemember, one for the family, and one for the command.
    These handbooks, which have been widely distributed throughout the Navy
    community, are excellent resources to support the families of the IAs.
    IAs, Reserve families, and commands have provided very positive
    feedback on the handbooks, noting their valuable resources and tips.
        Family readiness is a key enabler of sailor readiness. Navy Reserve
    Force family programs are continually improving with the assistance of
    Command Ombudsmen and the Family Support Team. One of our biggest
    challenges is the wide dispersion of Reserve component families
    throughout all States and territories, often without convenient access
    to the services provided by Navy Fleet and Family Support Centers. To
    extend services to those families, the Navy Reserve hired a full-time
    Family Support Program Manager on the Commander, Navy Reserve Forces
    Command, headquarters staff. Specific emphasis is placed on partnering
    with National Guard Family Assistance Centers. This liaison and
    improved cooperation with other Reserve components has greatly
    increased the availability and level of support for all Service
    personnel and their families. One program hosted mainly by the National
    Guard is the Inter-Service Family Assistance Committees (ISFAC). An
    ISFAC is a committee that facilitates ongoing communication,
    involvement, support, and family readiness between all branches of the
    Service in a geographic area. These committees meet on a quarterly
    basis. The goal of an ISFAC is to increase communication between all
    branches of the Service to strengthen family well-being.
        Through the ISFAC meetings, many ombudsmen and senior leadership
    become more familiar with the types of resources and services available
    at the military commands within the State and are able to provide
    families with more options on services. Many of our Navy Reserve
    families are in the Heartland of America and are not close to a Navy
    installation. Joining resources and sharing ideas with other Reserve
    components in an effort to reach out to families of all Services has
    proven to be an important aspect of family readiness throughout the
    Navy Reserve.
        The Fleet and Family Support Program Regional Directors and Center
    Site Directors continue to reach out to Reserve IA families. The
    outreach includes pre-deployment briefs to members and families,
    offering tips in terms of how to stay connected with the deployed
    sailor, outlining Navy and civilian resources available to them during
    the deployment, and assuring them that they are available for the
    families if they have any needs.
        The Command Ombudsman is another valuable resource for Reserve
    families. The Reserve Ombudsman program has grown into a robust program
    assisting families of all Reserve members and, in particular, the
    Reserve IAs and their families. Key ombudsmen from the Reserve
    community recently participated in a major ``train the trainers''
    conference. Much of the conference addressed the unique needs of
    Reserve IAs and their families. The ombudsmen, in turn, will now train
    other Reserve ombudsmen so that all will have current, state-of-the-art
    information, resources, and tools to better serve the Reserve family.
        Educating the family is a key aspect in retaining sailors. An
    educated family is more apt to encourage the servicemember to continue
    their career in the military. Reserve ``Family Days'' are a vital link
    in assisting families to be ready. Navy Operational Support Centers
    hold Family Days to provide ``one stop shopping'' of services and
    support for sailors to get family issues in order. Family Days include
    administrative support to update family member data, SGLI, family
    member identification card processing, legal assistance (simple wills
    and powers of attorney), presentations on Military OneSource, TRICARE,
    and American Red Cross, and representation from Veterans Service
    Organizations. Family Days give family members a much better
    understanding of the benefits and entitlements available to them. This
    is a venue where ombudsmen are able to market the ombudsman program and
    educate families on the services they provide. In addition, ombudsmen
    market their program through a newsletter or introductory letter sent
    to the families.
        The Navy has also partnered with the National Association of Child
    Care Resource and Referral Agencies (NACCRRA) to provide accessible,
    affordable, and quality child care where Navy programs are not
    operated. Navy Reserve personnel often come from cities and towns
    across America that are not close to a military installation where
    affordable, quality child care is available. Consequently, there is a
    need for short-term deployment child care spaces in local communities
    where families of deployed servicemembers reside. NACCRRA is the
    national network of more than 850 child care resource and referral
    (CCR&R) agencies located in every State and most communities across the
    country. CCR&R centers help families, child care providers, and
    communities provide and plan for affordable, quality child care. This
    partnership will assist Reserve families who live in remote and
    isolated areas with no access to military child care. Subsidies may be
    available to eligible patrons depending upon total family income,
    geographic location, Navy child care fee policy, and availability of
    military funding.
        The Navy continues to identify ways to better assist our Reserve
    members and their families who serve our country with their
    contributions and sacrifices.
        Mr. McLaurin. The Army provides assistance to all soldiers and
    families through a variety of methods. The Army National Guard (ARNG)
    has operated family readiness groups and family assistance center
    operations for over 20 years. Additionally, in fiscal year 2002, the
    ARNG enhanced their Family Assistance Centers program to provide
    families with information, referral, and limited outreach to support
    families throughout the mobilization cycle regardless of component or
    Service. The Army Reserve (USAR) has a web site that allows family,
    friends, employers, volunteers, and staff to access current
    information, take online training, and locate paid staff near their
    home for assistance. There is also a feedback feature that allows
    questions and concerns to be raised and addressed. The Department of
    Defense (DOD) operates Military OneSource, which provides 24/7 contact
    with personnel to assist in providing families with required support.
    Chaplains and MFLCs are also accessible to families in the event of
    crisis situations.
        The Army has developed the Integrated Multi-Component Family
    Support Network (IMCFSN), which capitalizes on the strengths of each of
    the Army components to establish a comprehensive multi-agency approach
    for community support and services to meet the diverse needs of Active
    and mobilized Guard and Reserve Army families. The IMCFSN delivery
    concept is accomplished by training Active Army, ARNG, and USAR service
    providers on all authorized services and programs available to soldiers
    and families by each component; marketing services to families; and
    unifying collaboration of military and civilian service providers
    through an ISFAC. A pilot project confirmed that the IMCFSN can be used
    to meet the needs of geographically dispersed families. The data
    suggested that the IMCFSN provides providers, soldiers, and families a
    better understanding of services available and enhances networking
    between service providers of each component/Service. It also will
    reduce duplication of effort and provide geographical support where
    families actually live. Networked systems will provide families access
    to online knowledge sources and interconnect people and systems
    independent of time, location, or Service component. The IMCFSN will be
    implemented in fiscal year 2008.
        General Brady. As operations tempo increases and deployments
    lengthen, Guard and Reserve families are presented with many unique
    challenges not experienced by their civilian counterparts. Just as
    reservists are participating at far greater rates, family readiness
    work has grown to a 365-day a year program. The Reserves and Guard are
    working toward improving family readiness programs by making
    connections with families stronger, helping them become better
    prepared, and having a proactive outreach program to meet the needs of
    units and individuals.
        Family Readiness Offices work with other on-base organizations, as
    well as those in the community for access to child care and youth
    resources and to sponsor special activities for children and spouses of
    deployed reservists, such as family dinners, holiday events,
    recreational fairs, family days, etc.
        In particular, the Air Force Reserve is focusing on strengthening
    all predeployment, deployment, and post deployment airmen and family
    wellness programs. Reserve Family Readiness Offices provide pre-
    deployment ``must know and must do'' information in preparing for
    activations and mobilizations. They also provide support for spouses
    and families during deployment that includes 100 percent contact with
    each spouse and family through phone calls, newsletters, postcards,
    free phone and video calls, and Key Family Member Support Groups. These
    important programs help to keep families connected with their deployed
    spouse and up-to-date on programs offered by the home station.
        For the geographically dispersed population of Guard and Reserve
    communities, methods of service delivery need to be quite flexible.
    Active Duty Airman and Family Readiness Centers and Reserve Family
    Readiness Offices are engaged in an active partnership to ensure all
    families are receiving services. This includes a range of support from
    individual and family life situations, crisis assistance, transition
    and employment assistance, combat-wounded to mass casualty, natural
    disaster response, relief and recovery.
        MFLCs, licensed counselors funded via a DOD contract, are used
    extensively by the Guard to provide an on-demand readiness support
    presence during drill weekends, mobilizations, or family events.
    Counselors are available to provide educational seminars for children
    and/or adults, or to meet with individuals on readiness related stress
    and issues.
        Information and education is distributed via email and websites for
    Guard and Reserve, and through Military OneSource on topics such as
    ``suddenly military,'' financial survival during deployments, parenting
    skills, and how to keep long-distance relationships healthy. DOD-funded
    Military OneSource uses toll-free telephone numbers and a website to
    deliver information and services 24 hours a day, 7 days a week, from
    any location in the world. Military OneSource provides access to pre-
    paid family assistance counseling services on issues ranging from
    parent-child communications to reunion and reintegration of the family
    following deployments. A separate section of Military OneSource now
    includes a page where community and military support organizations can
    post sponsored events to help connect families in their communities.
        Through partnerships with three national organizations, Air Force
    has expanded its capability to provide other family support services to
    families in remote and rural areas not served by an Active Duty, Air
    National Guard (ANG), or Air Force Reserve (AFR) base. The greatest
    challenge to providing support for airmen living in remote areas lies
    in the difficulty of identifying the family members and their needs as
    well as continued funding to support these efforts. Families are rooted
    in their local communities and use those support networks and services
    and do not necessarily identify themselves as ``military'' families.
    However, even with this challenge, Air Force Services has offered
    several successful programs to reach out and provide opportunities for
    these ANG and AFR members and their families.
        Air Force Home Community Care (HCC) program is an expanded child
    care initiative offered at 15 stateside locations. The Air Force HCC
    program provides free in-home quality child care services to ANG and
    AFR members during their scheduled drill weekends. HCC helps reduce the
    airman's out-of-pocket expenses by providing quality child care
    services to ANG and AFR members similar to those available to military
    members assigned to or living on a military installation.
        Mission Youth Outreach is a partnership between Air Force Services
    and Boys & Girls Clubs of America that provides 1-year free membership
    for youth to attend any local Boys & Girls Club in their community.
    This program provides much needed support to youth in families of AFR,
    ANG, and Active Duty military personnel who may not live near a
    military installation and need a safe and positive place for youth to
    spend their out-of-school time.
        4-H State Military Grants: Air Force Services Family Member
    Programs (FMP) partners with National 4-H Headquarters and Army Child
    and Youth Services to fund grants to States and territories
    establishing 4-H clubs on military installations, as well as providing
    support for youth of ANG and AFR members who are geographically
    dispersed. Since 4-H is located in every county in the United States,
    this partnership helps Air Force installations expand their reach and
    fosters stronger community partnerships for ANG and AFR families.
        Operation Purple Youth Camps 2006: National Military Family
    Association (NMFA) developed this free summer camp program in response
    to the need for increased support for military children, especially
    those whose parents are or will be deployed. This year, NMFA Operation
    Purple Camps hosted more than 2,500 deserving youth at 26 locations
    across 22 States. Air Force youth programs conducted 7 of these camps:
    Eglin/Hurlburt, Hill, McChord, Mountain Home, Tinker, Wright-Patterson,
    and Nellis. As a result, Air Force bases hosted 22 percent of the total
    participants.
        Military Child Care in Your Neighborhood (MCCYN) is a DOD-sponsored
    initiative designed to meet the child care needs of servicemembers
    living in off-base areas where on-base military child care is not
    available. Eligible members include recruiters, Reserve Officer
    Training Corps instructors, Military Entrance Processing Station
    personnel, and geographically dispersed members on independent duty
    assignments that cannot access the high quality, affordable care
    available on military installations. In the past, these families bore
    the full cost of their child care. Through MCCYN, Air Force families
    pay reduced fees for child care in their neighborhoods.
        Operation Military Child Care (OMCC) addresses the need for greater
    child care availability and affordability for the Total Force during
    times of increased OPTEMPO. OMCC is a DOD-funded child care subsidy
    program designed to assist all activated ANG/AFR members with child
    care costs in their local communities, in State-licensed, off-
    installation family child care homes. Military members such as
    recruiters, those who are geographically dispersed, on special duty
    assignments, and all military members in Active Duty status not
    assigned near a support base are eligible for subsidized child care.
    OMCC allows the Air Force to reach numerous families and assist our
    warfighters with the high cost of off-base child care in civilian
    communities.

            PROGRAMS FOR FAMILIES OF THE NATIONAL GUARD AND RESERVES

        2. Senator Byrd. Secretary Dominguez, what challenges are currently
    being experienced by the families of the National Guard and Reserves,
    specifically as they relate to access to health care services?
        Mr. Dominguez. Families of National Guard and Reserve members
    ordered to Active Duty for a period of more than 30 days are made
    eligible in Defense Enrollment Eligibility Reporting System for TRICARE
    on the same basis as Active Duty family members (ADFM), and may
    experience challenges that are common to any ADFM. The TRICARE network
    of providers, institutions, and suppliers is established near Military
    Treatment Facilities (MTFs) and in other TRICARE Prime Service Areas
    (PSAs). Families who reside outside PSAs are offered the opportunity to
    enroll in TRICARE Prime Remote for ADFMs, as long as they were residing
    with their Reserve sponsor at the time of activation. However, they may
    need to rely upon non-network TRICARE authorized providers,
    institutions, and suppliers where they live. Scientifically, rigorous
    surveys show that 9 out of 10 civilian providers are aware of TRICARE
    and 8 of 10 accept new patients in TRICARE Standard.
        Any inpatient facility that accepts Medicare is required by law to
    accept TRICARE for inpatient care. A Medicare approved individual
    provider is considered to be TRICARE approved unless the provider has
    been sanctioned. Although access problems are rare, we continue our
    efforts to link up providers and beneficiaries.
        Any family member beneficiary may encounter challenges in learning
    to use TRICARE, but we have extensive informational materials available
    and constantly push them out in print and on the TRICARE Web site.
    These initiatives are further supported by TRICARE customer service
    personnel at MTFs and at call centers. Also, TRICARE provides briefings
    to Reserve and National Guard units.

        3. Senator Byrd. Secretary Dominguez, when our National Guardsmen
    and reservists are wounded, their families often are required to travel
    great distances to support and be with them. What programs are in place
    or are being established to make this challenge more manageable?
        Mr. Dominguez. When the National Guard and Reserve are in combat,
    they have been mobilized under Federal law and are entitled to travel
    and transportation benefits under title 37, chapter 7, section 411h.
    The military Services contact the families, arrange for their travel,
    and assist them as much as possible once they have arrived at the
    servicemember's bedside.
        Response should incorporate references to the relevant Dole-Shalala
    Commission recommendations (see family support action steps--i.e.
    establish standby plan for family support, etc).

        4. Senator Byrd. Ms. Raezer, you are in contact with the
    individuals affected by these programs and this hearing is being held
    to determine what is being done poorly, and what is being left undone
    in the support of our National Guard and Reserve families. What are the
    specific shortcomings of the current support initiatives that have come
    to your attention and how might they be addressed?
        Ms. Raezer. While support for National Guard and Reserve has
    improved dramatically since the beginning of the global war on terror,
    the challenges of distance, isolation, and unfamiliarity with the
    military lifestyle must continually be addressed. Geographically-
    isolated Guard and Reserve families depend on a growing but sometimes
    still patchy military support network. These families often find
    themselves a great distance from traditional military installation-
    based support facilities. They may also be far from the Guard armory or
    Reserve center where their servicemember trains. How then does the
    family learn about all their Active Duty benefits or receive answers
    about how to follow the rules? How do their children manage the stress
    of deployment when none of their classmates is experiencing the same
    thing? What happens when a deployment extension or ``surge'' affects
    National Guard or Reserve families who cannot rely on a military
    installation?
        Following the President's January announcement of the troop surge
    to Iraq, the Minnesota National Guard created the model of how States
    can and should support their military families. It reached out
    aggressively to support affected families, beefing up an already-robust
    family readiness and training network. The State Guard augmented this
    network with additional military family life health providers across
    the State. DOD also generated a Tiger Team to analyze needs and
    allocate resources to support families affected by the surge. With the
    announcement of more extensions, additional Tiger Teams were stood up
    to augment medical services, counseling resources, and legal services
    and to help with commercial obligations.
        IAs (whether Guard, Reserve, or Active Duty) and their families are
    especially vulnerable to falling through the cracks. NMFA commends the
    Navy for its recognition of the challenges faced by IA families when
    their servicemembers have been deployed as individuals or small groups
    in support of ground combat operations. Families receive a toll-free
    number and access to a Web site providing information and a comment
    section for family questions related to deployment. The Navy Reserve
    has hired a full-time Family Support Manager to oversee Reserve
    military families' support. Five additional Family Support Managers
    will be in the field providing support to the ``Prairie Navy.'' This
    new support structure has been hard-fought because of funding
    challenges. Yet, without these innovations in Navy family support,
    servicemembers who are in harm's way would have to work harder to
    resolve pay problems, housing issues, and family concerns.
        Because Guard and Reserve families do not have access to military
    support services, programs such as Military OneSource are essential.
    NMFA encourages DOD to expand outreach about this 24-7 resource for
    servicemembers and their families.
        Guard and Reserve families also need help from their communities.
    Several States have established military assistance funds. Community
    organizations provide moral support and assist when financial problems
    are caused by either a decrease in their household income or by
    paperwork complications. NMFA believes efforts to link community
    organizations--both public and private--with military families are
    critical. We applaud initiatives such as the North Carolina Citizen
    Soldier Support Program for building a network of support for isolated
    Guard and Reserve families.

                         ELECTRONIC TRANSFER OF RECORDS

        5. Senator Byrd. Secretary Dominguez, when our National Guardsmen
    return wounded or injured they have to tackle the DOD, National Guard,
    and Veterans Affairs (VA) bureaucracy when transitioning from DOD
    medical care to VA medical care and in obtaining their disability and
    compensation ratings. The electronic transfer of records between these
    agencies would dramatically expedite this process. Congress has been
    funding electronic record keeping and interoperable electronic transfer
    programs since the 1980s. Since the establishment of such a program
    would mitigate the length of time these individuals spend in
    transition, and improve the quality of their lives and the lives of
    their families, when can we expect to see an effective electronic
    records transfer program being fully implemented?
        Mr. Dominguez. The DOD and the VA share a significant amount of
    health information today. Beginning electronic sharing in 2002, the
    Departments are constantly seeking to expand the scope of their
    capabilities. By the end of 2007, DOD will be sharing electronically
    with VA nearly every health record data element identified in our VA/
    DOD Joint Strategic Plan (JSP) for health information transfer. By
    2008, we will be sharing the remaining health record data elements
    identified in the VA/DOD JSP.
    Currently shared electronic medical record data:
             Inpatient and outpatient laboratory and radiology
            results, allergy data, outpatient pharmacy data, and
            demographic data are viewable by DOD and VA providers on shared
            patients through Bidirectional Health Information Exchange
            (BHIE). BHIE data are available from 15 DOD medical centers, 18
            hospitals, over 190 clinics, and all VA facilities.
             Digital radiology images are being electronically
            transmitted from Walter Reed Army Medical Center (WRAMC),
            Brooke Army Medical Center, and National Naval Medical Center
            (NNMC) Bethesda to the Tampa, Palo Alto, Minneapolis, and
            Richmond VA Polytrauma Centers for inpatients being transferred
            there for care.
             Electronic transmission of scanned medical records on
            severely injured patients transferred as inpatients from WRAMC
            and NNMC to the Tampa, Palo Alto, Minneapolis, and Richmond VA
            Polytrauma Centers.
             Pre- and Post-deployment Health Assessments and Post-
            deployment Health Reassessments for separated servicemembers
            and demobilized Reserve and National Guard members who have
            deployed.
             When a servicemember ends their term in service, DOD
            transmits to VA laboratory results, radiology results,
            outpatient pharmacy data, allergy information, consult reports,
            admission, disposition and transfer information, elements of
            the standard ambulatory data record, and demographic data.
             Discharge summaries from 8 of the 13 DOD medical
            centers and hospitals using the Clinical Information System
            (CIS) to document inpatient care are available to VA on shared
            patients. These sites include the facilities in the National
            Capitol Area, WRAMC, Malcolm Grow Medical Center, Dewitt Army
            Community Hospital, and NNMC Bethesda.
    Enhancement plans for 2007:
             Expanding the electronic transmission of scanned
            medical records on severely injured patients from WRAMC, NNMC,
            and BAMC to all four VA Polytrauma Centers.
             Making discharge summaries, operative reports,
            inpatient consults, and histories and physicals available for
            viewing by all DOD and VA providers from inpatient data at all
            13 DOD medical centers and hospitals using CIS.
             Making encounters/clinical notes, procedures, and
            problem lists available to DOD and VA providers through BHIE.
             Making theater outpatient encounters, inpatient and
            outpatient laboratory and radiology results, pharmacy data,
            inpatient encounters to include clinical notes, discharge
            summaries, and operative reports available to all DOD and VA
            providers via BHIE.
             Beginning collaboration efforts on a DOD and VA joint
            solution for documentation of inpatient care.
    Enhancement plans for 2008:
             Making vital sign data, family history, social
            history, other history, and questionnaires/forms available to
            DOD and VA providers through BHIE.
             Making discharge summaries, operative reports,
            inpatient consults, and histories and physicals available to VA
            on shared patients at Landstuhl Regional Medical Center,
            Germany.
                                     ______

                  Questions Submitted by Senator Mark L. Pryor

                               SPOUSE EMPLOYMENT

        6. Senator Pryor. Lieutenant General Brady, spouse employment can
    be quite a problem for military families, especially when personnel are
    required to move frequently. New communities with different economies
    present a unique challenge to working spouses, and can be even more
    difficult when a military family is stationed overseas. What programs
    are available for military households who seek two incomes either
    domestically or abroad?
        General Brady. The Department is committed to helping military
    spouses pursue rewarding careers and achieve educational and training
    goals by partnering with the States, the private sector, and other
    Federal agencies. We are actively working with Department of Labor
    (DOL) to ensure military spouses receive education and training support
    via Workforce Investment Act funds.
        Further, we are partnering with national associations and employers
    around careers in high-growth industries with mobile and portable
    careers, such as medical transcription, financial services, education,
    and real estate to establish spouses as a target employee pool and to
    remove career licensing barriers at the State level. We have created
    ``Spouses as Teachers,'' and this year expanded it beyond the United
    States to the United States European Command and United States Pacific
    Command.
        We have established a collaborative DOD/DOL Web site
    (www.milspouse.org) to assist spouses with resume development,
    identifying career opportunities, identifying and finding available
    training, and linking to One Stop Career Centers which support the
    local workforce economy for each respective location.
        To help spouses find employment when they move, we have also
    partnered with military.com, a division of monster.com, in developing
    the Web site portal: www.military.com/spouse, where spouses can post
    their resumes and conduct job searches for Federal and private sector
    jobs near their new installation.
        Spouse employment overseas continues to be a challenge, due to
    limited opportunities and Status of Forces Agreement requirements.
    Spouses are encouraged to contact their local legal office for guidance
    for home-based businesses, telework, and host nation employment.

                             REINTEGRATION PROGRAMS

        7. Senator Pryor. Secretary Dominguez, the war on terror has
    created horrific trauma to our troops engaged in combat. Many are
    returning with severe, life altering injuries that require a difficult
    and extremely challenging rehabilitation process. Reintegration
    programs are a critical factor in overcoming the adversity of being
    physically wounded, and a seamless transition for these troops is
    vitally important. In addition to survivor assistance initiatives, what
    other programs are available to support personnel who, for example, are
    confined to a wheelchair and now require wheelchair accessible housing?
        Mr. Dominguez. An integrated team of medical, social work, and
    support staff engage in discharge planning early in the hospitalization
    and recuperation phase. Each plan is tailored to meet the individual
    needs of each servicemember and his or her family. The team conducts an
    assessment-based effort to address medical care and quality of life
    issues such as:

             Housing (is adaptive housing needed?)
             Transportation (will vehicles need to be adapted to
            accommodate special needs?)
             Civilian employment of the servicemember or family
             Child care
             Counseling
             Family support
             Follow-on health care and access to appropriate health
            care resources, as needed
             Integration of benefits and services at the Federal
            level by the DOD, VA, and Labor; State, regional, and local
            level; and community-based nonprofit and volunteer
            organizations

        ``Heroes to Hometowns'' is a DOD program in partnership with the
    American Legion, State Directors of VA, and communities across the
    Nation. The transition program for severely injured servicemembers
    returning home from Operation Enduring Freedom/Operation Iraqi Freedom
    establishes a support network and coordinates resources for severely
    injured servicemembers returning home. Information is made available
    through the Internet and other outreach activities.
        One example of this type of community involvement is the
    California-based Sentinels of Freedom. The organization created a
    program that, through local donations of time, money, goods, and
    services, scholarship recipients receive housing, transportation,
    employment, and education assistance, and connects severely injured
    servicemembers and their families to a team of caring volunteers who
    provide guidance, mentoring, and friendship during a 4-year program. To
    date, four servicemembers have been assisted with this long-term
    support; other candidates await placement.
        Other private non-support organizations provide housing (Homes for
    Our Troops), adaptive transportation (Roll-X `Vans for Vets'), therapy
    dogs (Paw-Pals.org), assistance with air travel (Hero Miles), and
    temporary lodging at military and VA facilities (Fisher House). These
    are only a few of many organizations that have partnered to provide
    support and services at the community level for severely injured
    servicemembers and their families.
        Some useful Uniform Resource Locators are:

             www.legion.org/?content=heroes2hometown
             cs.itc.dod.mil/files/content/AllPublic/Workspaces/QOL-
            LIBRARY-PUBLIC/MilitaryHOMEFRONT/186199.html
             www.sentinelsoffreedom.org/
             www.homesforourtroops.org/site/PageServer
             www.paw-pals.org/page/page/1426468.htm
             www.fisherhouse.org/

                         ACCESS TO HEALTH PROFESSIONALS

        8. Senator Pryor. Mr. McLaurin, traumatic brain injury and post-
    traumatic stress disorder have created an increased demand for mental
    health services. In addition to clinical social workers, marriage and
    family therapists, ombudsmen, case managers, and counselors, do you
    believe there are enough licensed mental health professionals to
    provide adequate assessment, referral, and counseling for those
    servicemembers seeking mental health treatment?
        Mr. McLaurin. There are adequate counselors to provide family and
    marital counseling through MilitaryOneSource, family support, chaplain,
    and family advocacy systems. As of January 2007, the DOD total branch
    uniformed mental health clinical staffing levels are as follows:
    psychiatrists = 85 percent; clinical psychologists = 78 percent; social
    workers = 75 percent; psychiatric nurses = 129 percent; and psychiatric
    technicians = 98 percent. These statistics do not include military to
    civilian conversions, highly significant in one branch where, for
    example, civilian psychologists outnumber uniformed by almost 3:1. They
    also do not include contracted services within our MTFs or reflect the
    role of the managed care support contractor network providers.
        The final report from the Task Force on Mental Health, expected in
    June 2007, will include recommendations regarding DOD staffing of
    mental health professionals.
                                     ______

                 Questions Submitted by Senator Saxby Chambliss

                                  RECRUITMENT

        9. Senator Chambliss. Secretary Dominguez, at our Armed Services
    Committee hearing yesterday, General McCaffrey commented that the DOD's
    recruitment numbers are skewed for several reasons, including a lack of
    standardization in how recruits are counted, and that DOD is meeting
    recruitment goals because, among other reasons, recruitment standards
    have been lowered. Do you agree with this assessment?
        Mr. Dominguez. No, I do not agree with this assessment. DOD
    standards are explicit and stable. In fact, we have not lowered our
    quality standards since they were established in 1990. The Department's
    recruit quality benchmarks require 60 percent of the fiscal year non-
    prior service accessions to score at or above average on the enlistment
    aptitude test and 90 percent of those accessions to be high school
    diploma graduates.
        With respect to our numeric counting system, the Department
    measures and reports recruiting in a standard way--total accessions
    against goals.

        10. Senator Chambliss. Secretary Dominguez, is there a standardized
    way in which DOD measures recruiting and retention for Active-Duty and
    Reserve component personnel, and if not, why not?
        Mr. Dominguez. Yes, the Department does have a standardized way in
    which it measures recruiting and retention.
        Recruiting: The Department measures and reports total accessions
    against goals. With regard to enlistment standards, the Department has
    not changed the recruit quality enlistment standards since 1990. The
    Department's recruit quality benchmarks require 60 percent of the
    fiscal year non-prior service accessions to score at or above average
    on the enlistment aptitude test and 90 percent of those accessions to
    be high school diploma graduates.
        Retention: Measuring and reporting retention is standard within
    each Service and component. The Active components measure retention
    rates, while the Reserve components assess attrition rates as a measure
    of losses.

                                 CASE MANAGERS

        11. Senator Chambliss. Secretary Dominguez, at this point, I
    understand that DOD only has regulations related to the number of case
    managers required to manage personnel in a medical hold status.
    Consequently, there are no regulations for the ratio of case managers
    to personnel for Active-Duty personnel in a medical hold status. Should
    DOD establish a requirement and a standard for case managers for
    Active-Duty personnel in medical hold?
        Mr. Dominguez. The ratio for case management to personnel is not a
    one-size-fits-all answer. The DOD Medical Management Guide, dated
    January 2006. outlines a suggested caseload for case managers. The
    ratio is determined by several factors, to include the experience of
    the case manager, MTF, community-based resources, and other variables.
    Currently, DOD supports the Case Management Society of America's
    recommendations that are based on acuity of the patient as illustrated
    in the following table:

    ------------------------------------------------------------------------
                  Level                     Amount               Type
    ------------------------------------------------------------------------
    Acute...........................  8-10 cases........  Early injury/
                                                           illness stages
                                                           (case manager
                                                           performs all
                                                           coordination).
    Mixed...........................  25-35 cases.......  Acute and chronic
                                                           cases (some
                                                           requiring semi-
                                                           annual or annual
                                                           follow-up, some
                                                           needed full-time
                                                           CM coordination).
    Chronic.........................  35-50 cases.......  Cases requiring 1-
                                                           2 hours follow-up/
                                                           month.
    ------------------------------------------------------------------------

        12. Senator Chambliss. Secretary Dominguez, should DOD establish
    prescribed regulations related to the duties and responsibilities of
    DOD case managers of medical hold and holdover personnel, to include
    being an advocate for the patient during the process?
        Mr. Dominguez. The DOD TRICARE Management Activity Medical
    Management Guide, dated January 2006, provides guidance for case
    managers on duties and responsibilities, including special
    considerations for Active Duty servicemembers. Additionally, DOD has an
    instruction (DODI 6025.20, Medical Management (MM) Programs in the
    Direct Care System (DCS) and Remote Areas) which gives specific
    guidance on responsibilities for not only case management, but disease
    and utilization management. Additionally, there are Web-based modules
    available for case management training.

        13. Senator Chambliss. Secretary Dominguez, should there be a
    required training program for case managers and regulations that govern
    their specific responsibilities on behalf of servicemembers?
        Mr. Dominguez. Yes, the TRICARE Management Activity (TMA) provides
    MM training, which includes case management. Additionally, the DOD has
    an instruction (DODI 6025.20, MM Programs in the DCS and Remote Areas)
    which provides MTFs, case managers, and leadership specific guidance on
    responsibilities for not only case management, but disease and
    utilization management. Additionally, there are web-based modules
    available for case management training.

        14. Senator Chambliss. Secretary Dominguez, should there be a
    regulation requiring a certain percentage of case managers to be DOD
    civilians or military personnel as opposed to contractors, and in the
    event that contractors are utilized, what should be done to ensure the
    medical holdover mission is not compromised and that our soldiers
    receive the necessary advocacy when they are in a medical holdover
    unit?
        Mr. Dominguez. The need for case management services can be
    expected to change over time. Contracting creates flexibility to match
    the workforce to the local workload. Contracting for case management
    services does present a risk for relatively sudden and simultaneous
    disruptions in continuity of care as contracts are re-bid. Careful
    planning and oversight by military or civilian personnel is
    appropriate. It seems important to have a core of DOD civilian or
    uniformed case managers, potentially augmented by contractor case
    managers, depending on the OPTEMPO and clinical intensity of needs for
    the population to be served. The optimal mix of DOD uniformed, DOD
    civilian, and contractor case managers may need to be determined
    locally.

         MEDICAL EVALUATION BOARD AND PHYSICAL EVALUATION BOARD PROCESS

        15. Senator Chambliss. Secretary Dominguez, at this point VA
    personnel are rarely embedded within the Medical Evaluation Board and
    Physical Evaluation Board (MEB/PEB) process to help with the transition
    process. How might embedding VA personnel affect the MEB/PEB process
    and from our servicemembers' perspective, that this would be a good
    idea?
        Mr. Dominguez. VA participation in the process could be helpful,
    and we are working with the VA to increase their involvement. We are
    looking at increasing VA liaison personnel in our MTFs, involving the
    VA in the process to determine a single disability rating, and more VA
    visibility in case management and tracking. We are also reviewing the
    Navy's recently released Severely Injured Marines and Sailors Pilot
    Program, which examined the pros and cons of an accelerated disability
    retirement program in order to maximize compensation and benefits to
    the most severely injured. The Navy conducted this pilot program in
    collaboration with the VA.

        16. Senator Chambliss. Secretary Dominguez, how could VA personnel
    begin working with soldiers and possibly take charge of their paperwork
    and medical requirements once it is clear that a servicemember cannot
    be retained in the Service?
        Mr. Dominguez. We are looking at increasing VA liaison personnel in
    our MTFs, involving the VA in the process to determine a single
    disability rating, and more VA visibility in case management and
    tracking. We are also reviewing the Navy's recently released Severely
    Injured Marines and Sailors Pilot Program, which examined the pros and
    cons of an accelerated disability retirement program in order to
    maximize compensation and benefits to the most severely injured. The
    Navy conducted this pilot program in collaboration with the VA.

        17. Senator Chambliss. Secretary Dominguez, the MEB/PEB process
    that was established in the 1970s is out-dated and is extremely
    bureaucratic. For an Active-Duty servicemember, the process requires
    between 22 and 27 pieces of paper (although I understand you are
    whittling that down), and even more for a National Guard or Reserve
    member. How can we streamline the MEB/PEB process and what can we
    change to make it more efficient and cause it to better serve our men
    and women in uniform?
        Mr. Dominguez. The Disability Evaluation System (DES), which
    consists of the MEB and PEB processes, is complex, sometimes
    adversarial, and burdensome. Much of that is related to the statutory
    imperative for a fair and impartial system that affords due process
    protections (boards, legal representation, witnesses, an appellate
    process, etc.). The DES, as set forth in statute, allows the Department
    to provide additional guidance, but ultimately, the Secretaries of the
    Military Departments operate their DES consistent with their roles and
    missions, and apply ratings in accordance with how they interpret
    application of the VA Rating Schedule for Disabilities (VASRD).
        The complex and adversarial nature of the DES is partially a result
    of the magnitude of the benefits associated with the decisions on the
    rating. The disability rating determines whether the individual will
    separate with severance or with retirement benefits. For many, there is
    strong motivation to be declared fit to remain in uniform, despite
    injuries that would suggest otherwise.
        There are concerns that the VASRD has not kept current with the
    knowledge and service job environment, especially for brain injuries
    and pain as compared to other more physical injuries.

                            WOUNDED WARRIOR PROGRAM

        18. Senator Chambliss. Secretary Dominguez, the Army has
    established the Wounded Warrior hotline for soldiers and families to
    call to discuss any issues related to their care, and to consolidate
    issues/lessons learned. Are you satisfied with how DOD is collecting
    lessons learned in this area?
        Mr. Dominguez. Yes! The military Services continue to evaluate and
    adjust service delivery programs as the needs arise. This is most
    visible with the advent of specialized programs that, in the past 2
    years, have evolved into robust, responsive programs to support the
    severely injured: the Army's Wounded Warrior Program, the Navy's Safe
    Harbor Program, the Marine Corps' Marine4Life-Injured Support Program,
    and the Air Force's Palace Helping Airmen Recover Together Program.
        The establishment of the new United States Army's helpline is a
    good case in point. While other feedback programs were available, it
    appears that some soldiers may have been reluctant to use them. The new
    program provides avenues where soldiers can identify individual needs
    and the Army can address those needs quickly and efficiently. In the
    event systemic issues arise, the Army and other military Services
    maintain a close working relationship with the Office of the Secretary
    of Defense's Military Severely Injured Center and the Military
    Community and Family Policy office. These offices serve as a conduit
    for implementing change.

        19. Senator Chambliss. Secretary Dominguez, do you believe a
    confidentiality statement should be required?
        Mr. Dominguez. Privacy and confidentiality are essential to reduce
    the fear of stigmatization when seeking counseling services and
    support. For that reason, it is a key component of all short-term,
    situational, problem-solving, nonmedical counseling services provided
    in the DOD.
        To encourage the widest level of participation, all counseling is
    private and confidential, with the exception of mandatory State,
    Federal, and military reporting requirements such as child abuse and
    ``duty to warn'' situations. Situations that meet clinical diagnostic
    criteria are referred to military medical health care providers or
    TRICARE.

        20. Senator Chambliss. Secretary Dominguez, what is DOD's feedback
    system for ensuring that lessons learned actually get acted upon and
    how lessons learned are communicated across not only the Army, but
    Defense-wide?
        Mr. Dominguez. Reviewing lessons learned to ensure corrective
    action is an integral part of military operations. At the unit level,
    after action reviews are the norm following any operation. Each of the
    military Services has robust Centers for Lessons Learned to ensure that
    systemic issues are addressed in order to benefit all who serve.
        Prior to the standup of the DOD-VA Senior Oversight Committee (SOC)
    the Office of the Secretary of Defense (OSD) Military Severely Injured
    (MSI) Center acted as a central repository of information and lessons
    learned. The MSI Center would receive and disseminate information as
    appropriate to the Services to ensure they were up to date on issues
    involving the severely injured. ``Purple issues'' or issues which
    applied to injured across the Services, were analyzed by OSD to be
    resolved through improved coordination, revised policy, and/or
    legislative relief. Today, the Service severely injured programs are in
    frequent contact with one another, sharing all pertinent information
    that might benefit the injured and their families.
        The SOC, which meets weekly, and the supporting DOD Task Force are
    now the logical venues by which lessons learned are vetted and
    distributed to both the Services and to our counterparts in VA. Each
    SOC Line of Action is supported by the work of a joint, multi-
    disciplinary working group, which provides additional avenues for
    ensuring the latest is passed through the Department.
        Finally, the Joint Executive Council and its subordinate groups,
    the Health Executive Council and Benefits Executive Council, all joint
    groups with membership from DOD, the Services, and the VA, have been
    formal focal points for the collection of lessons learned since their
    inception. These are the organizations specifically established to
    ensure collaboration among the member agencies for addressing health,
    benefits, and other significant issues affecting all our servicemembers
    and veterans, to include the severely injured and their families.

                         LANGUAGE AND CULTURAL TRAINING

        21. Senator Chambliss. Secretary Dominguez, there is a desperate
    requirement for language and cultural training for servicemembers
    deploying to the U.S. Central Command area of responsibility. During
    Vietnam, I understand that some soldiers were required to receive 90
    days of immersion training. What is the current DOD requirement in this
    area and do you believe more training in this area is necessary?
        Mr. Dominguez. All troops receive the appropriate language and
    cultural awareness training prior to deploying. Approaches to this
    training vary based on mission requirements and include focused
    training provided by Mobile Training Teams and Defense Language
    Institute Foreign Language Center materials to provide tailored just-
    in-time training for short-term needs. Cultural awareness (CA)
    instruction highlights the differences between Middle Eastern and
    American cultures. Language training (either Iraqi or Pashto/Dari) is
    provided to familiarize servicemembers with common phrases they will
    hear in theater. ``Smart Cards,'' laminated, tri-fold, CA information
    cards are issued to troops prior to deployment. Information on the
    cards consists of common phrases, cultural tips, instant two-way
    communications via picture symbols, etc. Combat Training Centers, home
    stations, and mobilization sites integrate CA training and language
    into Situational Training Exercises. These scenarios incorporate
    native-speaking role players to replicate the contemporary operating
    environment. Online training options, such as downloadable language and
    cultural training modules, are also available to the force.
        Language training and CA programs in support of operational
    deployments are in place. The Services are monitoring to ensure long-
    term benefits, but it is still too soon to fully assess some of the
    programs' effectiveness. A general consensus reveals there is a
    positive effect, but until the programs reach full maturity, results
    will remain hard to measure. We will continue to monitor the
    effectiveness of the cultural and language training provided to
    deploying forces. Additional training will be instituted based on
    ongoing assessments of the results achieved by these programs.

                          BASE REALIGNMENT AND CLOSURE

        22. Senator Chambliss. Secretary Dominguez, the convergence of Base
    Realignment and Closure (BRAC) implementation, global restationing, and
    Army transformation is creating concerns and responsibilities for
    impacted communities. Although community growth is generally a welcome
    problem, it does bring with it some issues that need to be addressed.
    Roughly 30,000 school-aged children will be transitioning to these
    communities over the next few years, and I am greatly concerned about
    the effect on the school systems in these communities regarding the
    teacher-to-student ratio, school supplies, access to technology, space
    and classroom facilities, and basic school infrastructure. There is
    some relief through Impact Aid, but that is just a drop in the bucket
    toward making a difference in what these communities really need.
    Although the responsibility to take care of these communities doesn't
    fall specifically on DOD, the welfare of military families is a great
    concern to DOD. What discussions have gone on in relation to the issue
    of planning and assistance to local communities who will be impacted by
    BRAC and the other factors I have mentioned, and what is your office
    doing to ease this transition and ensure that the welfare of our
    military families is not compromised?
        Mr. Dominguez. Even though elementary and secondary education is
    the jurisdiction of the State and local governments, the Department
    realizes that one of the major factors in retaining the most capable
    personnel is providing quality educational experiences for
    servicemembers and their families. Therefore, the Department has a
    vested interest in quality education for military families.
        The Department is eager to support school systems that are highly
    impacted by base realignments. However, the Department recommends the
    name be changed to: ``Educational Assistance to Highly Impacted Local
    Education Agencies (LEA) per Public Law 109-364, section 574.'' In
    addition, that funding is placed in the Department of Defense Education
    Activity (DODEA) budget line for Collaboration/Presidential Initiatives
    that are intended to share educational excellence with local
    communities impacted by realignment to mitigate the pressure on LEAs.
    This is authorized by a new Public Law 109-364, section 574--``Plan and
    authority to assist local educational agencies experiencing growth in
    enrollment due to force structure changes, relocation of military units
    or base closure and realignments.'' DODEA is recognized as a high-
    quality school system with exceptional student performance.
        The Department is committed to working with and assisting LEAs to
    ensure that the welfare of our military families is not compromised.
    The Department has funded such resources as the Johns Hopkins Military
    Child Initiative, to help communities and school districts provide
    support to children of military families in transition and promote
    opportunities for success.
        DODEA has also developed expertise to address the issues of both
    transition and quality education for military students. It has been
    given the legislative authority to begin providing technical assistance
    and expertise to meet some of the challenges of providing quality
    education opportunities for military students. This is available to any
    LEA that is receiving a large number of military students which
    requests this assistance.
        In addition, DOD has collected best practices from communities that
    experienced growth and offered communities and schools a wide range of
    ideas and technical assistance in identifying resources for financial
    and facilities planning that have been used successfully by growth
    communities. These practices and expertise were shared with teams from
    17 impacted communities at a November 2006 Conference on Education in
    Atlanta, GA.
        Finally, the Department's Office of Economic Adjustment is planning
    visits to impacted communities to include experts on school expansion
    and transition to be able to continue its assistance to communities who
    will receive additional military students.

                      MILITARY TREATMENT FACILITY SURVEYS

        23. Senator Chambliss. Secretary Dominguez, I understand that both
    the TMA and the individual Services conduct surveys to determine the
    level of satisfaction that servicemembers have with the healthcare they
    receive. I am concerned that the surveying being done to date occurs at
    only specific times of the year, is not ongoing, and that this critical
    feedback is not made available in a timely manner to professionals at
    the individual MTFs who could in turn use the data to make quality
    improvements as needed. What can DOD do, going forward, to gather this
    critically important patient satisfaction data on a more frequent basis
    and to ensure that the results are made available to supervisors at the
    MTFs in a timely manner?
        Mr. Dominguez. Beneficiary satisfaction surveys are currently
    conducted by TMA in the outpatient and inpatient selling in both the
    direct care and purchase care environments. Additionally, TMA surveys a
    representative sample of all 9.2 million beneficiaries with regard to
    many aspects of the health plan. All of these surveys use questions
    that are nationally validated and can be used to benchmark the
    performance of the Military Health System (MHS) to national health
    plans. The results are tied to nationally recognized and proven methods
    for effecting change, i.e., improving satisfaction.
        For all of these surveys, feedback is provided to the MTFs and
    included in the survey on at least a quarterly basis. In addition, the
    Services conduct provider level surveys that furnish outpatient, direct
    care feedback to the MTFs.
        TMA is working with the Services and the TRICARE Regional Offices
    (TROs) to develop a survey program that will continue to provide
    leadership with an organizational perspective of beneficiary
    satisfaction (currently required quarterly). In addition, TMA will soon
    begin working with the Services and the TROs to survey on a more
    frequent, granular level to provide detailed and frequent feedback on
    beneficiaries' perspectives of their health care.

        24. Senator Chambliss. Secretary Dominguez, does DOD have any plans
    to ensure administrators and supervisors in positions to affect change
    at the MTFs have access to not only their quality scores but also to
    evidence-based information and guidance they can use to make
    improvements for the benefit of the 9.3 million servicemembers and
    dependents who rely on the MHS?
        Mr. Dominguez. Health care executives, providers, and purchasers
    seek performance measures to determine the quality of care provided by
    the health care organizations in the United States. MHS staff members
    actively participate in the development, review, and acceptance of
    quality measures established by organizations such as the National
    Quality Forum and the Agency for Health Care Research and Quality. The
    DOD utilizes these nationally recognized clinical quality measures as
    well as accreditation by external agencies with industry accepted
    standards to assess the care provided in the MHS. Within DOD, the
    direct care system utilizes multiple modalities to assist
    administrators, supervisors, and clinical leaders in assessing the
    delivery of quality health care, using evidenced-based guidelines to
    improve care, and monitoring the health status of DOD beneficiaries.
    Health outcomes are the end results of health care interventions.
    Currently, DOD uses four separate and distinct programs to evaluate
    health outcomes and health care quality:

             Joint Commission on Accreditation of Health Care
            Organizations ORYX Performance Measures
             National Perinatal Information Center (NPIC) Benchmark
            Database
             National Quality Management Program (NQMP) Special
            Studies
             The MHS Population Health Portal and Health Plan
            Employer Data and Information Set (HEDIS)

        The ORYX and NPIC programs use recognized and validated measures
    that allow DOD to compare its performance to national norms. NQMP
    Special Studies use a combination of DOD-specific norms and national
    norms to assess the care provided. The availability of nationally
    comparative data allows systems to focus effort and resources on the
    areas with the greatest opportunity for improvement. It also allows
    organizations, such as the MHS, to identify, understand, and reproduce
    best practices and high functioning micro-systems. The use of consensus
    measures to identify strengths and weaknesses is only a first step.
    Consensus measures are most effective when they are closely linked to
    leadership-directed performance improvement.
        The National Committee for Quality Assurance developed the HEDIS
    to provide reliable, comparative data about health care quality, using
    data from health plans across the country. The MHS Population Health
    Portal uses methodologies similar to HEDIS to monitor how well MTFs
    deliver preventive care (e.g., breast cancer screening, cervical cancer
    screening), and how well members with acute illnesses (e.g., acute
    myocardial infarction) or chronic diseases (e.g., asthma, diabetes) are
    managed to avoid or minimize complications. Current clinical
    performance measures based on HEDIS methodologies include:

             Cervical cancer screening rates (Pap tests)
             Breast cancer screening rates (mammography)
             Use of appropriate medications for people with asthma
             Diabetes care (HbA1c testing and control, retinal
            exams, low density lipoprotein screening and control)

        The data for these clinical performance metrics were gathered from
    an MHS electronic central database, which includes inpatient,
    outpatient, and pharmacy information. Reports on the clinical
    performance measures, with comparative data internal and external to
    the MTF, are provided to MTF and MHS leadership. Clinicians can
    continually monitor the status of the patients they serve to ensure
    their health care needs are met.
        The ready availability of performance measures through the MHS
    Population Health Portal permits visibility of clinical performance
    information at all levels of the MHS, from providers through senior
    leadership. Actionable information permits providers to deliver timely,
    evidence-based medical services. Aggregate data permit MHS leadership
    to assess the performance of the health care delivery system overall.
    Incorporation of HEDIS and ORYX measures into the MHS Balanced
    Scorecard demonstrates the importance of these measures to the
    Department.

        25. Senator Chambliss. Secretary Dominguez, what plans, if any,
    does DOD have to ensure patient satisfaction surveys are done in a more
    integrated and efficient process between the different branches of
    Service?
        Mr. Dominguez. Currently, representatives from the Services meet
    quarterly, and on an ad hoc basis as required, with TMA to integrate
    and increase the efficiency of a multi-layered beneficiary satisfaction
    survey program. Recent efforts have focused on the development of a
    common instrument to be used at the MTF provider level across the
    Services and to include specific questions common to the Services and
    TMA level surveys. TMA will continue to work with the Services to
    further integrate the important perspectives of our beneficiaries
    relative to care provided across the MHS.
                                     ______

                   Questions Submitted by Senator John McCain

                  DOD SCHOOL CONSTRUCTION AND RECAPITALIZATION

        26. Senator McCain. Secretary Dominguez, over the past 3 years,
    military construction funding for schools within the DODEA has
    decreased by over 60 percent from $99.4 million in 2006 to $37.9
    million in the budget request for fiscal year 2008. Even more
    disturbing, none of the funds requested for fiscal year 2008 will be
    used to replace an existing school, only to expand facilities, mostly
    overseas. Furthermore, only $2 million of the $34.5 million for new
    construction in fiscal year 2008 will be for domestic schools at a time
    when DOD plans to realign over 100,000 personnel and their families
    back to the United States from overseas locations. Why is the
    Department's military construction investment plan for DOD schools
    decreasing at a time when requirements as a result of force structure
    realignments and end strength increases are expanding, particularly for
    schools in the United States?
        Mr. Dominguez. DODEA's military construction program is developed
    from two major types of projects: (1) those that support existing
    requirements, and (2) those that support a change in requirements due
    to the troop realignment of the military Services.
        In fiscal year 2008, the projects that support DODEA's existing
    requirements had program funding of $34.5 million. Funding for existing
    requirements totaled $65.6 million in fiscal year 2006 and $46.2
    million in fiscal year 2007. Most of the requested $34.5 million in
    fiscal year 2008 is targeted for projects to replace the following
    existing facilities:

             Wiesbaden High School ($15.4 million): Project replaces the
            existing gym, whole classroom building, and converts small gym
            facility into cafeteria.
             Brussels Elementary/High School ($5.9 million): Project
            replaces existing gym, music, and art facilities.
             DeLalio Elementary School, Camp Lejeune ($2.0 million):
            Project replaces existing gym and art facilities.

        The other two projects provide multi-purpose facilities in Europe
    that support the existing educational program.
        The change in military construction requirements that support
    military troop realignments explains the more significant decrease in
    funding across the past 3 fiscal years. In fiscal year 2006 and fiscal
    year 2007, $35.8 million and $47.3 million were programmed,
    respectively, for these types of requirements. In fiscal year 2008,
    only $3.4 million is programmed for design efforts related to troop
    realignments.
        DODEA works closely with the military Services on all troop
    movements that impact DODEA school locations. Projects requiring new
    capacity as a result of military troop relocations, including
    relocations to the United States, are scheduled and funded in the
    appropriate timeframe. Note that only troop rotations to the DOD
    domestic school locations will warrant new school construction. All of
    the fiscal year 2008 projects are requirements coordinated with the
    military Services and are located on enduring installations.

        27. Senator McCain. Secretary Dominguez, does DOD maintain a set of
    standards by which all schools in the DODEA system are assessed? If so,
    can you provide those standards and an assessment of whether the
    schools in the DODEA inventory meet those standards?
        Mr. Dominguez. The Department uses Quality Ratings (Q-Rating) as a
    standard or measure to assess the condition of all of its facilities,
    including the schools in DODEA. A Q-Rating is calculated as the ratio
    of current maintenance and repair needs to plant replacement value. The
    resulting percentages are then aligned against the Department's Q-
    Rating guidance to determine the overall rating of the facility. DODEA
    has been an active participant in the Q-Rating Working Group since its
    formation and has contracted independent architectural and engineering
    firms to assess school facilities since 2002. The table below provides
    a breakout of Q-Ratings for DODEA school facilities:

    ------------------------------------------------------------------------
                                                                Percent of
                  Rating                General Description  DODEA Buildings
    ------------------------------------------------------------------------
    Q-1..............................  Facility new or well            24.1
                                        maintained.
    Q-2..............................  Facility is                     11.6
                                        satisfactorily
                                        maintained.
    Q-3..............................  Facility is under               25.5
                                        maintained.
    Q-4..............................  Facility should be              38.8
                                        considered for
                                        replacement.
    ------------------------------------------------------------------------

        28. Senator McCain. Secretary Dominguez, does the budget request
    for fiscal year 2008 for DODEA meet the budget goal established by DOD
    to invest in the recapitalization (renovation and replacement) of
    facilities at a rate equal to a 67-year total replacement cycle? If
    not, why not?
        Mr. Dominguez. When developing the fiscal year 2008 budget, the
    Department balanced DODEA's facilities requirements along with its core
    educational requirements, resulting in a shortfall in funding for
    recapitalization. There remains a facilities requirements backlog, but
    all safety and security projects are given priority. If additional
    funding becomes available, it will be directed towards DODEA's
    recapitalization requirements.

        29. Senator McCain. Secretary Dominguez, what would be the required
    annual level of investment in military construction, restoration, and
    modernization by DODEA to meet DOD's recapitalization goal?
        Mr. Dominguez. Based on the current DOD 67-year recapitalization
    goal, DODEA would require an additional $51 million in fiscal year 2008
    and $37 million in fiscal year 2009.

                    FACILITY SUSTAINMENT FUNDING FOR SCHOOLS

        30. Senator McCain. Secretary Dominguez, over the past 3 years,
    funding for schools within the DODEA to support facility sustainment,
    restoration, and modernization has fallen short, by up to 36 percent,
    of goals established by the DOD for a minimally acceptable annual level
    of funding required to sustain facilities. This means that projects to
    fix roofs, repair air conditioning, and to correct critical safety
    deficiencies are being deferred in order to pay for other priorities.
    This is the same type of problem that affected Building 18 at WRAMC,
    only this time, it is the children of our servicemembers who are
    subjected to deteriorated conditions. Currently, DODEA has an unfunded
    backlog of over $33 million for critical repair projects, such as
    asbestos removal, radon and lead testing, replacement of fire doors,
    suppression and alarm systems, repair of heating boilers, in addition
    to roof replacements, floor repairs, etc. As an aside, DODEA receives
    about $1.5 billion annually in operations and maintenance funds for
    DODEA schools worldwide and, of that amount, has averaged about $65
    million annually for facility sustainment funding. Given the relative
    impact to DODEA's overall operating budget, is this risk to our
    military's children posed by deteriorated school conditions acceptable
    to the Department? If not, what is the Department's plan to address
    these critical facility requirements immediately in fiscal year 2007?
        Mr. Dominguez. The Department manages risk by conducting regularly
    scheduled inspections of DODEA school facilities. The military
    community helps inspect all DODEA facilities twice a year; once prior
    to school opening in August and the second in the spring timeframe. All
    life-safety concerns are corrected as recommended by the military
    inspectors. In addition, triennial inspections are conducted by an
    independent architectural engineering firm which assesses over 30
    building and exterior components based on an up-to-date industry
    standard process. From these annual and triennial inspections,
    deficiencies are identified and projects are funded based on critical
    life safety factors.
        There remains a facilities requirements backlog, but all safety and
    security projects are given priority. If additional funding becomes
    available during fiscal year 2007, more identified projects will be
    completed.

        31. Senator McCain. Secretary Dominguez, what would be the required
    annual level of investment in facility sustainment by DODEA to meet the
    DOD goal to include in the budget request funding for 100 percent of
    the total sustainment requirement?
        Mr. Dominguez. An additional $30 million annually would be required
    to meet 100 percent of the total sustainment requirement based on the
    DOD sustainment model.

                           CHILD DEVELOPMENT CENTERS

        32. Senator McCain. Secretary Dominguez, I noted in your witness
    statement on the subject of child care that you describe an emergency
    intervention strategy to address the most pressing child care needs at
    locations affected by high deployments and rebasing. The Department
    dedicated $82 million in part towards the purchase of modular
    facilities for 7,000 additional spaces in 37 child development centers.
    The use of modular, temporary facilities are intended to be an interim
    solution until permanent facilities, which are safer and more
    efficient, can be constructed. Can you provide a list of the locations
    where modular facilities were used to satisfy child care requirements?
        Mr. Dominguez. The Department is very appreciative of the
    flexibility this authority allowed us in increasing spaces on a rapid
    basis. The temporary program to use minor military construction
    authority for the construction of child development centers provides a
    means to increase the availability of quality, affordable child care
    for servicemembers and their families to support the global war on
    terror and an increased OPTEMPO. In addition to the 37 child
    development centers you address, spaces were also added using 42
    addition/renovation projects. The construction project locations are
    listed below (by Service):

             Army projects:

                     Fort Drum, NY (2 projects)
                     Fort Lewis, WA (3 projects)
                     Fort Riley, KS (2 projects)
                     Fort Carson, CO (3 projects)
                     Fort Stewart, GA
                     Fort Hood, TX
                     Fort Campbell, KY (4 projects)
                     Fort Bliss, TX (3 projects)
                     Hunter Air Field, GA
                     Walter Reed, Washington, DC
                     Detroit Arsenal, MI
                     Fort Bragg, NC
                     Fort Lee, VA
                     Tobyhanna, PA
                     Anniston Army Depot, AL
                     Fort Sill, OK
                     Picatinny Arsenal, NJ
                     Redstone Arsenal, AL
                     Fort Polk, LA

             Navy projects (Modular Facility Construction):

                     San Diego, CA
                     NYS Norfolk, VA (2 projects)
                     NYS Pearl Harbor, HI
                     Dallas-Reserve site, TX
                     Gulfport, MS
                     Pensacola, FL

             Marine projects (Modular Facility Construction):

                     Camp Lejeune, NC
                     Camp Pendleton, CA

             All Air Force projects, with the exception of the project at
            Eglin Air Force Base (AFB), are permanent spaces as a result of
            a renovation or addition to an existing facility. The project
            at Eglin is modular facility construction:

                     Nellis AFB, NV (2 projects)
                     Seymour Johnson AFB, NC
                     Mountain Home AFB, ID
                     Offutt AFB, NE (2 projects)
                     Holloman AFB, NM (2 projects)
                     Little Rock AFB, AR
                     Moody AFB, GA
                     Hurlburt AFB, FL
                     Eglin AFB, FL
                     Edwards AFB, CA (2 projects)
                     Tinker AFB, OK (2 projects)
                     Hanscom AFB, MA
                     Travis AFB, CA
                     United States Air Force Academy, CO
                     Vogelweh Air Base (AB), Germany (2 projects)
                     Lakenheath AB, United Kingdom
                     Kadena AB, Okinawa
                     Osan AB, Korea
                     Yokota AB, Japan
                     Hickam AFB, HI (3 projects)
                     Ramstein AB, Germany (2 projects)
                     Columbus AFB, MS
                     Kirtland AFB, NM
                     Beale AFB, CA
                     Buckley AFB, CO
                     Arnold AFB, TN
                     Eielson AFB, AK
                     Geilenkirchen AB, Germany (2 projects)
                     Elmendorf AFB, AK

        Eighteen of the Army projects were constructed for immediate use in
    fiscal years 2006-2007 as a means to address the most pressing child
    care needs at locations impacted by high deployment and rebasing troop
    movements. These facilities are linked to Future Years Defense Program
    Military Construction projects and will remain operational through
    fiscal year 2013. All other modular construction under the expanded
    authority has a 50-year lifespan.

        33. Senator McCain. Secretary Dominguez, can you also provide the
    Department's investment plan to replace those temporary facilities with
    permanent construction?
        Mr. Dominguez. The National Defense Authorization Act for Fiscal
    Year 2006 expanded authority allowed the Services to construct
    facilities using operation and maintenance funds, providing commanders
    the ability to respond to urgent situations and to an increased OPTEMPO
    for the global war on terror. The Army constructed 18 interim Child
    Development Centers for immediate use in fiscal years 2006-2007. The
    intent was to address the most pressing child care needs at locations
    impacted by high deployment and rebasing troop movements. These
    facilities are linked to Future Years Defense Program Military
    Construction projects and will remain operational through fiscal year
    2013. All other construction under the expanded authority is either
    permanent modular construction or renovation/addition of an existing
    facility.
        There are 742 child care centers across the DOD. In order to
    recapitalize this large child care system, we estimate we need
    approximately 18-20 centers per year. DOD still needs approximately
    30,000 spaces.

        34. Senator McCain. Secretary Dominguez, in fiscal year 2006, this
    committee proposed a temporary authority, which later became law, to
    permit the Department greater flexibility in the use of operations and
    maintenance funds to construct child development centers. This
    authority is set to expire on September 30, 2007. Does the Department
    have a position on whether Congress should extend this temporary
    authority?
        Mr. Dominguez. All of the military Services would like an extension
    of the expanded child care construction authority contained in section
    2805 of the National Defense Authorization Act for Fiscal Year 2006. We
    will continue to submit those projects to you as required by the
    authority.
        The Department moved forward with an emergency intervention
    strategy to address the most pressing child care needs at locations
    impacted by high deployments and rebasing. We will continue to address
    child care with emergency supplemental actions.

        35. Senator McCain. Secretary Dominguez, what projects and
    locations has this authority been used?
        Mr. Dominguez. The temporary program to use minor military
    construction authority for the construction of child development
    centers provides a means to increase the availability of quality,
    affordable child care for servicemembers and their families to support
    the global war on terror and an increased OPTEMPO. Commanders can use
    operation and maintenance funding to respond to urgent situations.
        The construction projects and locations are listed below (by
    Service):

            Army projects (Modular Facility Construction):

                    Fort Lewis, WA
                    Detroit Arsenal, MI
                    Fort Bragg, NC
                    Fort Lee, VA
                    Tobyhanna, PA
                    Anniston Army Depot, AL
                    Fort Sill, OK
                    Picatinny Arsenal, NJ
                    Redstone Arsenal, AL
                    Fort Polk, LA

            Navy projects (Modular Facility Construction):

                    NAS JRB Fort Worth, TX
                    CBC Gulfport, MS
                    CNET Pensacola, FL

            Air Force project is an addition to an existing facility:

                    Ramstein Air Base, Germany (2 projects)

        The Department is appreciative of the flexibility this authority
    allowed us in increasing spaces on a rapid basis. The DOD is committed
    to expanding the child development system in order to meet the child
    care demand due to high deployments and OPTEMPO. Under the temporary
    minor military construction authorization, the Services initiated
    projects, which will result in an increase of 1,785 child care spaces.
    By supporting DOD families' need for child care, we contribute to the
    efficiency, readiness, and retention of the total force. Without
    extension of this authority, unmet child care needs will create stress
    on families. Specific future need for the authority is unknown, since
    Commanders use this in urgent situations, particularly as rebasing
    demographics fluctuate.

    impact of 2005 defense base realignment and closures on schools in the
                                local community
        36. Senator McCain. Secretary Dominguez, I have a question about
    the impact of the 2005 BRAC round on schools in the local communities
    around bases that will see a significant increase in student
    populations. As a result of BRAC, many military bases around the
    country are expected to see increases in military and civilian
    populations that exceed 5,000 personnel. Recent plans by the President
    to grow the Army and Marine Corps end strength in the next 5 years by
    about 91,000 personnel will result in greater population growths. As a
    result, local communities who have always worked hard to support their
    military bases, are faced with the daunting challenge of providing
    housing and schools for the incoming students. Ideally, these
    communities would like to have these additional schools constructed and
    ready to go as the student population arrives. In order to do this,
    these communities need accurate data and timelines for the student
    population's arrival into the area.
        Many communities raised a problem to the level of Congress last
    year that this planning information was not forthcoming from the DOD.
    This committee requested and received a DOD report on projected student
    populations at each location, but some of the numbers in the report
    conflict dramatically with numbers being provided to local communities
    by installation commanders. These discrepancies are paralyzing the
    local community's planning efforts and attempts to raise funds through
    bond issuances. What can the Department do right now to assist the
    local communities in their planning efforts to provide schools for our
    military's children?
        Mr. Dominguez. The data provided to Congress in the November 7,
    2006, ``Report on Assistance to Local Educational Agencies for Defense
    Dependent Education,'' was reported by each respective Service,
    calculated by the total movement of servicemembers. However, when using
    military servicemember data to evaluate the number of school age
    children of military and civilian employees who will potentially be
    moving to a particular military installation, the numbers need to be
    evaluated in the proper context. The number of military servicemembers
    moving to a particular installation may not be a true indicator on what
    is actually happening in a particular community concerning the number
    of dependents. There are many factors which go into a military member's
    decisions to move and/or when to move their dependents to the new
    location.
        The most accurate accounting of the number of students occurs
    between the local command and the local community. Housing locations
    and availability, housing construction timelines, specific demographics
    of the military members moving to a location, impact of deployment, and
    an evolving mission of the Armed Services are factors in determining
    accurate numbers of arriving students. Therefore, the Department always
    encourages the local community to plan carefully with the installation
    command to ensure the most accurate number and timeline.
        To answer the question, ``What can the Department do right now to
    assist the local communities in their planning efforts,'' the
    Department's Office of Economic Adjustment (OEA) assists communities to
    plan and carryout community activities in response to significant
    impacts associated with Defense program changes. OEA's project managers
    are currently working with 20 communities impacted by BRAC and Global
    Defense Program Review actions. The assistance includes technical, and,
    in some cases, grant assistance to local and State governments as they
    prepare to organize, plan, and implement community development
    activities in response to Defense personnel growth associated with
    military installations. Additionally, OEA is working with other Federal
    agencies to send teams to these designated communities to discuss
    community growth plans, and will include a representative from the
    Military Community and Family Policy Office in the teams, whenever
    there are concerns about school expansion.

        37. Senator McCain. Secretary Dominguez, are financial resources
    from the Federal Government available to local communities for school
    construction?
        Mr. Dominguez. The Department does not have funds that would assist
    communities in the construction of schools. School construction is
    under the jurisdiction of the local and/or State government. However,
    the Department is committed to identifying both Federal and private
    financial alternatives for communities to consider when expanding
    schools and/or districts.
        The DOD collected the best practices from communities that
    experienced growth and held a November 2006 conference in Atlanta, GA,
    that offered communities and schools a wide range of ideas and
    technical assistance in identifying resources for financial and
    facilities planning.
        Some of the information shared with the communities included
    Federal resources, such as the United States Treasury Department's
    program where LEAs can receive no-interest bonds through its Quality
    Zone Academy Bond (QZAB) Program, primarily to support facility
    renovation and repair projects. QZAB can assist LEAs in accommodating
    additional students as a result of DOD force realignments through
    renovations that increase capacity. For instance, one LEA renovated a
    building that had not previously been used as a school, converting it
    into a school building. QZAB also provides additional support, which
    can potentially alleviate the pressure on other revenue sources
    currently being programmed to accomplish repair and renovation
    projects.
        Additionally, the Department of Education shares its support for
    public school programs, such as public charter schools, and gives
    grants to States to assist the start-up costs and facilities costs of
    charter schools. Other Federal grants may provide support to LEAs,
    depending on specific community circumstances, such as the Qualified
    Public Education Facility Bond Program.
        Schools are encouraged to work with their local communities and
    develop business plans. Military impacted schools who have worked with
    their communities and examined traditional and alternative ways of
    financing have found growth to be both a positive and rewarding
    experience for military families and students.

        [Whereupon, at 6 p.m., the subcommittees adjourned.]